WASHINGTON PRESIDENT CLINTON AND JAPANESE PRIME MINISTER KIICHI MIYAZAWA ENDORSED A NEW FRAMEWORK FOR TRADE BETWEEN THE US AND JAPAN BUT EACH LEADER INTERPRETS THAT FRAMEWORK VERY DIFFERENTLY THE OUTLOOK NOW IS FOR MONTHS IF NOT YEARS OF TOUGH CONTENTIOUS TRADE HAGGLING VERY MUCH IN THE OLD FRAMEWORK OF USJAPANESE RELATIONS AMERICANS THINK THEY CAN DO THINGS WITH JAPAN IN THE SHORT RANGE THEY NEVER CAN SAID NATHANIEL THAYER DIRECTOR OF ASIAN STUDIES AT THE SCHOOL OF ADVANCED INTERNATIONAL STUDIES MR CLINTON ENVISIONS A FRAMEWORK THAT INCREASES US EXPORTS OF AUTOMOBILES COMPUTERS AND OTHER GOODS TO JAPAN AND ELIMINATES JAPANESE MONOPOLY PRACTICES AND OTHER PROBLEM AREAS THE US INSISTS ON MEASURING PROGRESS TOWARD THOSE GOALS BY USING VARIOUS QUANTITATIVE TARGETS SUCH AS THE MARKET SHARE OF US PRODUCTS IN JAPAN THE PRESIDENT SAID AT A PRESS CONFERENCE FRIDAY THAT HE WAS DEEPLY CONCERNED ABOUT THE INADEQUATE ACCESS FOR AMERICAN FIRMS PRODUCTS AND INVESTORS IN JAPAN MR MIYAZAWA WASN'T SO EXPLICIT THE JAPANESE HANDED AMERICAN OFFICIALS A LIST OF ABOUT A DOZEN PROJECTS IN TECHNOLOGY AND ENVIRONMENT AREAS SUCH AS THE DEVELOPMENT OF MAGNETICALLY LEVITATED TRAINS WHICH THEY BELIEVE THE US AND JAPAN COULD WORK ON TOGETHER AS FOR TRADE MEASURES MR MIYAZAWA TOLD MR CLINTON DURING THEIR MEETING FRIDAY THAT JAPAN REJECTED QUANTITATIVE TARGETS US AND JAPANESE OFFICIALS SAID IMPROVEMENTS IN TRADE CANNOT BE REALIZED WITH MANAGED TRADE NOR UNDER THE THREAT OF UNILATERALISM THE PRIME MINISTER SAID AT THE PRESS CONFERENCE THE PRESIDENT LATER RESPONDED LET'S NOT PAPER THIS OVER THERE ARE SOME DIFFERENCES STILL ON WHAT KINDS OF AGREEMENTS WE SHOULD MAKE THE TWO LEADERS DID AGREE AT LEAST ON A SCHEDULE THEY PLEDGED TO CHOOSE AN AGENDA FOR THE TRADEFRAMEWORK TALKS BY JULY 7 WHEN THE MAJOR INDUSTRIALIZED COUNTRIES WILL CONVENE IN TOKYO FOR AN ECONOMIC SUMMIT THEN THE TWO SIDES WOULD BEGIN DETAILED NEGOTIATIONS ON THE AREAS SELECTED MR MIYAZAWA YESTERDAY SAID I'M REALLY HAPPY THAT PRESIDENT CLINTON INSTEAD OF CALLING FOR A QUICK FIX PROPOSED TO WORK AT THE FRAMEWORK SPEAKING GENERALLY ON JAPAN'S TRADE SURPLUS WITH THE US HE SAID ON ABC NEWS'S THIS WEEK WITH DAVID BRINKLEY THAT ECONOMICALLY THESE KIND OF LOPSIDED BALANCES SHOULD NOT PERHAPS LAST FOR MANY YEARS THE US PLANS FOR THE TRADE FRAMEWORK REFLECT IN BROAD MEASURE THE THINKING OF CHIEF WHITE HOUSE ECONOMIST LAURA TYSON WHO RECENTLY PUBLISHED A BOOK ON MANAGING TRADE CONFLICTS IN HIGHTECHNOLOGY INDUSTRIES US TRADE REPRESENTATIVE MICKEY KANTOR SAID MS TYSON HAD ENORMOUS INFLUENCE ON THE PROPOSAL A SENIOR WHITE HOUSE OFFICIAL CREDITED MS TYSON WITH DEVISING A VARIETY OF WAYS TO MEASURE INCREASED ACCESS TO THE JAPANESE MARKET APART FROM USING MARKETSHARE NUMBERS IN AREAS OF GOVERNMENT PURCHASES THE OFFICIAL SAID THE US COULD MEASURE WHETHER SPECIFIC PROCUREMENTS ARE OPEN TO FOREIGN COMPANIES AND WHETHER BIDDERS HAVE EQUAL OPPORTUNITIES THE US COULD ALSO LOOK AT WHETHER JAPANESE GOVERNMENT OR INDUSTRYDEVELOPED STANDARDS ARE APPLICABLE TO ALL COMPANIES AND NOT TILTED SO THEY FAVOR JAPANESE COMPANIES ANOTHER MEASURE COULD BE US EXPORT GROWTH NEVERTHELESS JAGDISH BHAGWATI A COLUMBIA UNIVERSITY ECONOMIST CALLED THE US APPROACH A FORM OF EXPORT PROTECTIONISM THAT COULD UNDERMINE THE WORLD TRADING SYSTEM IF US COMPANIES HAVE EVIDENCE THAT JAPANESE MARKETS ARE RIGGED HE SAID THEY SHOULD TAKE THEIR COMPLAINTS TO A DISPUTERESOLUTION PANEL CONVENED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE A GATT PROPOSAL WOULD STRENGTHEN THOSE PANELS AS PART OF A NEW WORLDTRADE PACT BUT THE US OBJECTS TO THE PROPOSAL BECAUSE IT COULD ECLIPSE US TRADE LAWS MR KANTOR SAID THE ADMINISTRATION MUST NOW SELECT THE INDUSTRIES IT WANTS TO FOCUS ON WITH THE JAPANESE THE EARLY FAVORITES INCLUDE COMPUTERS AUTOMOBILES AUTO PARTS ELECTRONICS AND SEMICONDUCTORS THOSE SECTORS CONSTITUTE THE BULK OF THE US TRADE DEFICIT IN ADDITION THE US WANTS JAPAN TO OPEN ITS MARKET FURTHER FOR BANKING INSURANCE AND LEGAL SERVICES THE ADMINISTRATION WILL CHOOSE INDUSTRIES ACCORDING TO ECONOMIC IMPACT JOB IMPACT AVAILABILITY OF JAPANESE MARKET AND THE COMPETITIVENESS OF US INDUSTRY MR KANTOR SAID LOBBYING CLOUT HELPS TOO JOHN SCULLEY CHIEF EXECUTIVE OF APPLE COMPUTER INC WAS AN EARLY AND VOCAL SUPPORTER OF MR CLINTON WHO HELPED RALLY OTHERS IN SILICON VALLEY TO SUPPORT THE DEMOCRATIC TICKET AS PART OF A BROAD EFFORT TO KEEP THE COMPUTER INDUSTRY HIGH ON THE TRADE AGENDA MR SCULLEY WROTE TO MR KANTOR MARCH 24 COMPLAINING THE JAPANESE WERE STONEWALLING ON A COMPUTER PROCUREMENT AGREEMENT JOHN ROLLWAGEN THE COMMERCE DEPARTMENT'S DEPUTY SECRETARYDESIGNATE IS A FIRM ALLY OF MR SCULLEY BEFORE TAKING THE COMMERCE DEPARTMENT JOB MR ROLLWAGEN WAS CHIEF EXECUTIVE OF SUPERCOMPUTER MAKER CRAY RESEARCH INC WHICH PRODDED THE US TO NEGOTIATE AN AGREEMENT WITH JAPAN OVER SUPERCOMPUTER PURCHASES TOKYO EXPECTED TO BE ABLE TO PLACATE THE NEW ADMINISTRATION ON INDUSTRY MATTERS BY MAKING IT CLEAR IT WOULD BUY A FEW NEW CRAY SUPERCOMPUTERS AS PART OF ITS STIMULUS PACKAGE SAID A US BUSINESSMAN IN JAPAN WITH LONG EXPERIENCE IN TRADE ISSUES BUT JAPANESE DIPLOMATS SEEMED CAUGHT OFFGUARD BY MR CLINTON'S INSISTENCE ON PURSUING NEGOTIATIONS OVER A BROAD RANGE OF INDUSTRIES THE NIGHT BEFORE THE CLINTONMIYAZAWA MEETING MASAMICHI HANABUSA THE FOREIGN MINISTRY'S SPOKESMAN TOLD A SMALL GROUP OF REPORTERS THAT TOKYO WOULD FLATLY REJECT ANY PROPOSAL TO NEGOTIATE OVER SPECIFIC INDUSTRIES IF THAT PROPOSAL INCLUDED QUANTITATIVE TARGETS TO MEASURE PROGRESS THEN HE MADE A JOKE ABOUT HOW THE US ALWAYS WANTS JAPAN TO MEAN NO WHEN IT SAYS NO A REFERENCE TO A RECENT REPORT THAT PRESIDENT CLINTON TOLD RUSSIAN PRESIDENT BORIS YELTSIN THAT THE JAPANESE OFTEN SAY YES TO THE US WHEN THEY MEAN NO THE FOLLOWING MORNING THOUGH MR MIYAZAWA AGREED TO NEGOTIATE OVER THE NEW TRADE FRAMEWORK EVEN THOUGH THE US EXPLICITY WANTS THAT FRAMEWORK TO INCLUDE TARGETS THAT LEFT A CLEARLY UNCOMFORTABLE MR HANABUSA TO EXPLAIN THAT TOKYO HAD ONLY AGREED TO ADDRESS CONCRETELY INDUSTRY ISSUES BUT HADN'T AGREED ON ANY YARDSTICKS TO MEASURE PROGRESS 9304190054 930419 BUSINESS BRIEF ALBARA CORP FIRM HAD 4THQUARTER LOSS DESPITE SHARP REVENUE RISE ALBARA CORP POSTED SHARPLY HIGHER FOURTHQUARTER REVENUE BUT EXPENSES RELATED TO THAT GROWTH RESULTED IN A LOSS FOR THE PERIOD THE COMPUTER RESELLER AND SOFTWARE MAKER REPORTED A LOSS OF 286000 OR 33 CENTS A SHARE COMPARED WITH A YEAREARLIER PROFIT OF 1000 REVENUE JUMPED 48 TO 53 MILLION FROM 36 MILLION THE CONROE TEXAS COMPANY SAID GENERAL AND ADMINISTRATIVE EXPENSES MORE THAN DOUBLED IN THE QUARTER TO 16 MILLION FROM 744000 A YEAR EARLIER ALBARA SAID IT FACED INCREASED MARKETING ADVERTISING AND PERSONNEL COSTS AS IT SHIPPED A NEW SOFTWARE PRODUCT IN LATE SEPTEMBER AND A NEW CATALOG IN OCTOBER FOR ALL OF 1992 ALBARA REPORTED A NET LOSS OF 76000 OR EIGHT CENTS A SHARE COMPARED WITH NET INCOME OF 81000 OR 10 CENTS A SHARE IN 1991 REVENUE NEARLY DOUBLED TO 196 MILLION FROM 10 MILLION GENERAL AND ADMINISTRATIVE EXPENSES MORE THAN DOUBLED TO 49 MILLION FROM 19 MILLION IN 1991 ALSO REFLECTING ESCALATING PERSONNEL AND MARKETING COSTS 9304190053 930419 BUSINESS BRIEF SELECTIVE INSURANCE GROUP INC LOWER PROFIT IS SEEN BECAUSE OF STORMS WORKERS' CLAIMS SELECTIVE INSURANCE GROUP INC BRANCHVILLE NJ SAID IT EXPECTS TO REPORT LOWER FIRSTQUARTER PROFIT BECAUSE OF TWO HEAVY WINTER STORMS AND HIGHER LOSSES FROM WORKERS' COMPENSATION COVERAGE THE INSURANCE HOLDING COMPANY SAID NET INCOME FOR THE QUARTER WILL BE REDUCED BY ABOUT 44 MILLION AFTER REINSURANCE AND TAXES A YEAR EARLIER SELECTIVE INSURANCE REPORTED FIRSTQUARTER PROFIT OF 336 MILLION OR 253 A SHARE AFTER A GAIN OF 265 MILLION FROM THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES THE COMPANY SAID LOSSES FROM THE TWO WINTER STORMS TOTALED 20 CENTS A SHARE ADDITIONAL WORKERS' COMPENSATION LOSSES OF 13 CENTS A SHARE MOSTLY REFLECT AN INCREASE IN THE NUMBER OF SEVERE CLAIMS REPORTED IN MARCH THE COMPANY SAID IT LIMITS ITS EXPOSURE TO CATASTROPHETYPE LOSSES THROUGH REINSURANCE 9304190052 930419 BUSINESS BRIEF HEALTH & REHABILITATION PROPERTIES TRUST IS SELECTED BY RTC TO BUY 25 MORTGAGE LOANS HEALTH & REHABILITATION PROPERTIES TRUST NEWTON MASS SAID THE RESOLUTION TRUST CORP SELECTED IT AS THE WINNING BIDDER FOR 25 MORTGAGE LOANS WITH A TOTAL FACE VALUE OF ABOUT 78 MILLION THE TRUST SAID IT WOULD PURCHASE THE LOANS FOR ABOUT 92 OF FACE VALUE OR APPROXIMATELY 72 MILLION THE LOANS ARE PERFORMING AND ARE SECURED BY FIRST MORTGAGES ON 25 NURSING HOMES WITH A TOTAL OF 3552 BEDS THE CONCERN SAID A HEALTH & REHABILITATION SPOKESMAN SAID A UNIT OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP WOULD FINANCE ABOUT 60 OF THE PURCHASE OF THE LOANS THE TRUST ADDED THAT IT EXPECTS TO RECEIVE A YIELD ON THE INVESTMENT OF 11 TO 14 A YEAR THE MORTGAGE LOANS INVOLVED IN THE DEAL WERE ORIGINATED BY TRANSOHIO FEDERAL SAVINGS BANK AND WILL MATURE BETWEEN 1993 AND 2001 THE TRUST SAID THE DEAL IS SUBJECT TO VARIOUS CONDITIONS AND IS EXPECTED TO CLOSE BEFORE MAY 31 THE TRUST SAID AT THAT TIME IT WILL HAVE ABOUT 440 MILLION INVESTED IN 86 HEALTH CARE FACILITIES IN 20 STATES 9304190051 930419 EXGE EMPLOYEE'S WHISTLEBLOWER' SUIT IS DISMISSED BY JUDGE A WALL STREET JOURNAL NEWS ROUNDUP A FEDERAL JUDGE DISMISSED A LAWSUIT AGAINST GENERAL ELECTRIC CO FILED BY A FORMER GE EMPLOYEE WHO HAD CHARGED THE COMPANY WITH INFLATING THE LABOR COST IN CERTAIN GOVERNMENT CONTRACTS THE JUDGE AT THE US DISTRICT COURT IN BOSTON DISMISSED THE SUIT ON THE GROUND OF INSUFFICIENT EVIDENCE THE SOCALLED WHISTLEBLOWER SUIT WAS FILED BY SALVATORE CIMORELLI WHO WAS AN EMPLOYEE AT GE'S LYNN MASS ENGINE PLANT WE ARE PLEASED BUT NOT SURPRISED AT THE RULING DISMISSING THE CASE A GE SPOKESWOMAN SAID NORMAN JACKMAN THE ATTORNEY REPRESENTING MR CIMORELLI SAID HE WAS REVIEWING THE CASE FOR THE PURPOSES OF APPEAL UNDER THE FEDERAL FALSE CLAIMS ACT EMPLOYEES CAN SUE IN BEHALF OF THE GOVERNMENT AND THEN SHARE IN ANY DAMAGES RECOVERED MR CIMORELLI SUED GE IN NOVEMBER 1989 HE ALLEGED THAT FROM THE EARLY 1970S UNTIL 1984OR 1985 SUPERVISORS AT THE LYNN PLANT SYSTEMATICALLY ALTERED EMPLOYEE LABOR VOUCHERS PURSUANT TO THE INSTRUCTIONS OF MANAGEMENT HE SAID IN THE SUIT THE PURPOSE WAS TO OVERCHARGE THE US GOVERNMENT MILLIONS OR AS MUCH AS HUNDREDS OF MILLIONS OF DOLLARS THE GOVERNMENT WHICH MAY INTERCEDE IN BEHALF OF A WHISTLEBLOWER CHOSE NOT TO IN MR CIMORELLI'S CASE THE US JUSTICE DEPARTMENT DID INTERVENE IN ANOTHER RECENT CASE AGAINST GE IN WHICH THE COMPANY PLEADED GUILTY AND PAID 69 MILLION IN FINES AND PENALTIES TO SETTLE CIVIL AND CRIMINAL CHARGES THAT SUIT EXPOSED A BRIBERY SCHEME BY GE MANAGERS AND OTHER EMPLOYEES DESIGNED TO INFLUENCE ISRAEL INTO BUYING GE JET ENGINES 9304190050 930419 HOWELL COMPLETES STOCK OFFER HOUSTON HOWELL CORP SAID IT COMPLETED A 30 MILLION OFFERING OF 350 CONVERTIBLE PREFERRED STOCK THE OFFERING MANAGED BY JEFFERIES & CO WAS PRICED AT 50 A SHARE TO YIELD 7 AND IS CONVERTIBLE INTO COMMON STOCK AT 1650 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING FRIDAY HOWELL COMMON WAS QUOTED AT 13625 UNCHANGED THE DIVERSIFIED ENERGY COMPANY SAID NET PROCEEDS OF ABOUT 285 MILLION FROM THE OFFERING WILL BE USED TO ACCELERATE ITS DEVELOPMENT DRILLING PROGRAM TO PAY BANK DEBT AND FOR GENERAL CORPORATE PURPOSES 9304190049 930419 ABREAST OF THE MARKET IS THERE STILL MORE LIFE LEFT IN THE AGING BULL MARKET BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL DON'T PUT THE BULL MARKET OUT TO PASTURE YET WITH THE DOW JONES INDUSTRIAL AVERAGE CLIMBING TO A RECORD FRIDAY ALBEIT BY ONLY A FRACTION OF A POINT FEW ANALYSTS DISPUTE THE NOTION THAT THE BULL MARKET THAT BEGAN IN OCTOBER 1990 IS GETTING OLD BY HISTORICAL STANDARDS BUT A POWERFUL BREW OF FALLING INTEREST RATES SLOW BUT STEADY ECONOMIC GROWTH AND RISING CORPORATE PROFITS IS SUSTAINING THE GRIZZLED BULL I'M REMINDED OF THE YOGI BERRA EXPRESSION IT AIN'T OVER TILL IT'S OVER' SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP BUT THE PROBLEM WITH BEAR MARKETS IS YOU DON'T KNOW IT'S STARTED UNTIL IT'S STARTED THAT'S WHY STOCKMARKET STRATEGISTS AND INVESTORS ARE COMBING THE DATA ON BULL CYCLES FOR HINTS OF EXHAUSTION FROM MR JOHNSON'S PERSPECTIVE THE INVESTIGATION HAS TURNED UP SOME PRETTY GOOD NEWS THE SIGNS THAT USUALLY ACCOMPANY THE END OF A BULL MARKET ARE MISSING HE SAYS ONE SUCH SIGN IS A MOVE BY THE FEDERAL RESERVE TO PUSH SHORTTERM INTEREST RATES HIGHER ANOTHER IS CLEAR EVIDENCE THAT THE ECONOMY IS BEGINNING TO SLOW NEITHER APPEARS IMMINENT SAYS MR JOHNSON YOU DON'T GET THE START OF A BEAR MARKET UNDER THESE CONDITIONS HE SAYS STILL HE SAYS BULL MARKETS CERTAINLY DON'T LAST FOREVER AFTER STUDYING BULL MARKETS DATING BACK TO 1890 MR JOHNSON HAS DETERMINED THE AVERAGE DURATION IS 37 MONTHS WITH A GAIN OF 116 ON THE DOW JONES INDUSTRIAL AVERAGE THE CURRENT BULL PHASE HAS LASTED ABOUT 30 MONTHS AND HAS DRIVEN THE DOW INDUSTRIALS UP ABOUT 45 BY THOSE STANDARDS THIS ONE IS ARGUABLY TOO SHORT AND TOO SHALLOW MR JOHNSON SAYS BUT HE CONCEDES THAT HIS DATA INCLUDE SEVERAL EXTRAORDINARY BULL RUNS THAT SKEW THE AVERAGES SUCH AS THE 1921 TO 1929 PHASE THAT LIFTED THE DOW INDUSTRIALS 497 AND THE 1982 TO 1990 PERIOD THAT ADDED 286 TO THE INDUSTRIAL AVERAGE WITHOUT THOSE EXTRAORDINARY PERIODS THE AVERAGE BULL MARKET LASTS 27 MONTHS AND LIFTS THE DOW INDUSTRIALS 55 HE SAYS THAT MEANS THE CURRENT BULL MARKET IS ABOUT AVERAGE IN PERCENTAGE GAIN AND A LITTLE LONG IN THE TOOTH IN DURATION NONETHELESS MR JOHNSON SEES THE BULL PHASE EXTENDING AT LEAST THROUGH THE REST OF THIS YEAR WHAT HAS DRIVEN THIS BULL MARKET IS THE SHIFT BY HOUSEHOLDS FROM CASH TO STOCKS BONDS AND MUTUAL FUNDS HE SAYS YOU COULD SEE THE END OF THE BULL MARKET AND THE START OF A BEAR MARKET IF THAT SHIFT WERE SLOWING OR STOPPING BUT IT HASN'T OCCURRED YET A DOWNTURN IN THE ECONOMY ALSO WOULD TOPPLE THE BULL MARKET MR JOHNSON SAYS AND HE EXPECTS THE ECONOMY TO WEAKEN AROUND SEPTEMBER 1994 AS THE CLINTON ECONOMIC PROGRAM INCLUDING HIGHER TAXES BEGINS TO TAKE A TOLL THE MARKET USUALLY TURNS DOWN ABOUT FOUR MONTHS BEFORE THE ECONOMY HE SAYS THAT MEANS YOU HAVE TO START TO BE ON YOUR TOES IN THE SECOND QUARTER OF 1994 AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF AGREES THAT THE BULL MARKET ISN'T IN IMMINENT DANGER OF COLLAPSING BUT HIS RAFT OF INDICATORS ARE SHOWING SOME SIGNS OF DETERIORATION TWO MONTHS AGO THEY WERE ALL POSITIVE HE SAYS NOW THEY'RE STARTING TO SHADE TOWARD THE NEGATIVE WHICH YOU'D EXPECT AT 30 MONTHS IN THE BULL MARKET AMONG THE WORRISOME SIGNS IS THAT SELLING BY CORPORATE INSIDERS HAS PICKED UP THEY'RE SELLING AT LEVELS THAT WOULD INDICATE SOME CAUTION MR MOORE SAYS HE ALSO IS CONCERNED THAT SOME INEFFICIENCY IS CREEPING INTO THE MARKET AS STOCK PRICES REMAIN HIGH ON SLOWER VOLUME THAT SHOWS LESS HEFT TO THE MARKET MR MOORE SAYS IT SOMETIMES COMES MONTHS BEFORE A MAJOR PROBLEM OTHER INDICATORS SUCH AS INVESTOR SENTIMENT AND THE NUMBER OF ISSUES RISING COMPARED WITH THE NUMBER FALLING IN PRICE REMAIN FAIRLY POSITIVE HE SAYS MORE IMPORTANTLY HE SAYS THE INTERESTRATE ENVIRONMENT IS STILL VERY POSITIVE THAT WOULD HAVE A WAYS TO GO BEFORE IT GETS NEGATIVE BUT ALAN NEWMAN TECHNICAL MARKET ANALYST AT HD BROUS & CO TAKES A DARKER VIEW HE ARGUES THAT THE BULL MARKET IS ALREADY TOTTERING AND MAY SOON GO OUT WITH A BANG LOW RATES HAVE WORKED ABOUT AS MUCH MAGIC AS THEY'RE GOING TO WORK MR NEWMAN SAYS WHAT WORRIES HIM MOST IS THE HUGE INVESTOR APPETITE FOR STOCK MUTUAL FUNDS NET SALES OF SUCH FUNDS TOTALED 807 BILLION IN ALL OF 1992 COMPARED WITH 431 BILLION IN 1991 ACCORDING TO THE INVESTMENT COMPANY INSTITUTE THE FUND INDUSTRY'S TRADE GROUP I CAN'T CONCEIVE THAT DEMAND WILL CONTINUE AT THAT PACE MR NEWMAN SAYS IF DEMAND DECLINES PRICES SURELY WILL DECLINE MR NEWMAN ALSO POINTS TO WHAT HE DESCRIBES AS SEVERAL WATERSHED EVENTS ONE IS A 63 BULLISH READING IN THE DEC 18 SURVEY OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS EXTREME BULLISHNESS OFTEN IS A CONTRARY INDICATOR OF A COMING DECLINE IN STOCK PRICES ANOTHER IS THE LOW DIVIDEND YIELD ON STOCKS IN THE STANDARD & POOR'S INDEX THAT YIELD FELL TO 272 MARCH 10 THE THIRDLOWEST READING EVER MR NEWMAN SAYS THE TWO LOWER POINTS WERE IN JANUARY 1973 AND AUGUST 1987 AND OVERALL THE YIELD ON THE S&P HAS FALLEN BELOW 29 ONLY SEVEN TIMES IN HISTORY EVERY SINGLE ONE OF THOSE TIMES THE MARKET HAD A SHARP DECLINE AFTERWARD HE SAYS THE SHALLOWEST WAS 21 IN OCTOBER 1965 THE WORST WAS 83 BETWEEN 1929 AND 1932 MR NEWMAN EXPECTS THE END OF THIS BULL MARKET TO RESULT IN A 25 DROP ON THE S&P HE NOTES THAT SOME BEAR MARKETS DO THEIR DIRTY WORK SWIFTLY ALLOWING A NEW BULL MARKET TO RETURN SOON FOR INSTANCE THE LAST BEAR MARKET WHICH KNOCKED STOCK PRICES DOWN 21 LASTED ONLY FROM JULY TO OCTOBER 1990 HOPEFULLY IT'LL BE QUICK AGAIN MR NEWMAN SAYS INVESTORS WENT SHOPPING FOR ECONOMICALLY SENSITIVE STOCKS HELPING THE DOW JONES INDUSTRIAL AVERAGE SQUEAK PAST ITS OLD RECORD MINNESOTA MINING & MANUFACTURING AND ALLIEDSIGNAL OFFSET THE DECLINES IN CONSUMERPRODUCT ISSUES SUCH AS PROCTER & GAMBLE AND COCACOLA STANDARD & POOR'S 500STOCK INDEX INCHED UP 054 TO 44894 AND THE NEW YORK STOCK EXCHANGE COMPOSITE ADDED 035 TO 24774 VOLUME ON THE BIG BOARD TOTALED 299634600 SHARES UP FROM THURSDAY'S 259343980 ADVANCING ISSUES OUTNUMBERED DECLINERS 961 TO 887 FOR THE WEEK THE DOW INDUSTRIALS GAINED 242 STANDARD & POOR'S 500 ROSE 161 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADVANCED 160 GILLETTE TUMBLED 4 7/8 TO 49 1/8 IN HEAVY TRADING FRIDAY BEAR STEARNS ANALYST CONSTANCE MANEATY CUT HER RATING ON THE MAKER OF PERSONALCARE PRODUCTS TO HOLD FROM BUY THURSDAY GILLETTE REPORTED SHARPLY LOWER FIRSTQUARTER PROFIT BECAUSE OF A BIG ACCOUNTING CHARGE JP MORGAN JUMPED 2 3/8 TO 74 1/8 RAYMOND JAMES & ASSOCIATES RAISED ITS INVESTMENT RATING ON JP MORGAN TO BUY FROM HOLD AFTER THE MONEY CENTER BANK REPORTED STRONG FIRSTQUARTER PROFIT THURSDAY HOME SHOPPING NETWORK SLID 3/8 TO 4 1/2 THE CABLE SHOPPING NETWORK'S ABILITY TO BUY APPAREL WAS CURTAILED LAST WEEK WHEN MAJOR FACTORING FIRMS SUSPENDED CREDIT TO A NUMBER OF APPAREL MAKERS THAT SHIP MERCHANDISE TO THE COMPANY THE FIRM'S CONTROLLER SAID IT IS CURRENT WITH PAYMENT SCHEDULES TO ITS FACTORS AND VENDORS STORAGE TECHNOLOGY GAINED 1 5/8 TO 25 5/8 THE COMPANY REPORTED BETTERTHANEXPECTED PROFIT FOR THE FIRST QUARTER CADENCE DESIGN SYSTEMS DROPPED 1 1/8 TO 8 3/8 BROWN BROTHERS HARRIMAN ANALYST MICHAEL LINSKY DOWNGRADED HIS RATING ON THE COMPANY TO NEUTRAL FROM BUY REFLECTING HIS DIMINISHED CONFIDENCE IN THE RAPIDITY OF CADENCE'S PROFIT TURNAROUND OVER THE NEXT SEVERAL QUARTERS THURSDAY THE COMPANY REPORTED A FIRSTQUARTER LOSS OF 37 CENTS A SHARE AFTER 23 CENTS OF RESTRUCTURING CHARGES A YEAR EARLIER CADENCE DESIGN EARNED 21 CENTS A SHARE 9304190048 930419 INTERNATIONAL CANADA PROVINCE WILL SELL ITS STAKE IN ALBERTA ENERGY BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL THE GOVERNMENT OF THE PROVINCE OF ALBERTA FACED WITH THE FASTESTGROWING DEBT BURDEN OF CANADA'S 10 PROVINCES SAID IT PLANS TO SELL TO THE PUBLIC ITS 36 STAKE IN ALBERTA ENERGY CO A CALGARY OIL AND GAS CONCERN THE SALE OF THE STAKE WILL RAISE ABOUT 476 MILLION CANADIAN DOLLARS US3781 MILLION FOR THE PROVINCE WHICH NOW FACES A DEFICIT OF ABOUT C32 BILLION AND A PROVINCIAL DEBT LOAD THAT HAS CLIMBED TO ABOUT C236 BILLION FROM C84 BILLION IN THE LAST SIX YEARS ALBERTA GOVERNMENT OFFICIALS SAID THAT C274 MILLION OF PROCEEDS FROM THE SALE WILL BE USED TO REDUCE DEBT LOAD WITH C183 MILLION GOING TO THE PROVINCE'S HERITAGE SAVINGS TRUST FUND THE FUND WAS ESTABLISHED IN THE EARLY 1980S TO INVEST THE PROVINCE'S SHARE OF OIL AND GAS ROYALTIES AND THE PROCEEDS FROM THE SALE OF DRILLING RIGHTS AND OIL AND NATURAL GAS IN RECENT YEARS THE ALBERTA GOVERNMENT HAS BEEN FORCED TO DRAW ON THE HERITAGE FUND ASSETS TO AVOID RUNNING LARGER DEFICITS OR INTRODUCING SUCH MEASURES AS SALES TAXES THIS IS A POSITIVE SIGN FOR THE PROVINCE ALTHOUGH THE SUMS INVOLVED ARE REALLY A PITTANCE IN THE FINAL ANALYSIS SAID EUGENE WILLIAMS A FINANCIAL ANALYST WITH CANADIAN BOND RATING SERVICE IN MONTREAL IT SHOWS THEY'RE AWARE THAT THE DEBT PROBLEM ISN'T GOING AWAY AND THAT THEY CAN'T KEEP TAPPING THE HERITAGE FUND INDEFINITELY THE ALBERTA GOVERNMENT PLANS TO SELL 25 MILLION SHARES AT C19 A SHARE TO INVESTORS THROUGHOUT CANADA WITH 40 OF THE OFFERING RESERVED FOR ALBERTA RESIDENTS UNTIL TODAY UNDER TERMS OF THE TRANSACTION INVESTORS WILL PAY HALF OF THE PURCHASE PRICE WHEN THE ISSUE CLOSES NEXT MONTH AND THE REMAINING INSTALLMENT OF C950 A SHARE A YEAR LATER IN TRADING ON THE TORONTO STOCK EXCHANGE FRIDAY SHARES OF ALBERTA ENERGY CLOSED AT C1925 OFF 125 CANADIAN CENTS BEFORE THE ISSUE WAS ANNOUNCED THE COMPANY HAS 694 MILLION SHARES OUTSTANDING INVESTMENT INDUSTRY OFFICIALS DESCRIBED THE INITIAL RESPONSE TO THE ISSUE AS HIGHLY POSITIVE NOTING THAT THE PORTION OF THE OFFERING RESERVED FOR INSTITUTIONAL INVESTORS ALREADY IS OVERSUBSCRIBED ENTHUSIASM FOR OIL GAS STOCK ANALYSTS NOTED THAT A MORE POSITIVE OUTLOOK FOR CRUDE OIL AND NATURAL GAS PRICES IN THE NEXT FEW YEARS HAS RESULTED IN A GREATER APPETITE FOR SHARES OF PROFITABLE AND STABLE OIL AND GAS CONCERNS ALBERTA ENERGY IS ONE OF CANADA'S LARGEST OIL AND GAS COMPANIES WITH ASSETS OF ABOUT C19 BILLION AND OPERATIONS IN OIL AND GAS PRODUCTION OIL PIPELINES FERTILIZERS AND FOREST PRODUCTS IN 1992 THE COMPANY REPORTED NET INCOME OF C422 MILLION OR 53 CANADIAN CENTS A SHARE UP FROM C138 MILLION OR 12 CANADIAN CENTS A SHARE IN 1991 9304190047 930419 WHAT'S NEWS BUSINESS AND FINANCE CLINTON'S STIMULUS PACKAGE HAS TO BE STRIPPED DOWN EVEN FURTHER TO HAVE ANY SHOT AT PASSAGE SAID DOLE WHO IS LEADING A REPUBLICAN SNUB OF THE COMPROMISE PLAN DOLE SAID THE FILIBUSTER STILL HOLDS DESPITE THE PRESIDENT'S EFFORTS TO WIN REPUBLICAN VOTES BY PROPOSING TO CUT THE 16 BILLIONPLUS PLAN BY 4 BILLION BUT HE ALSO SAID HE WAS WILLING TO ALLOW A SEPARATE VOTE ON THE PART OF THE PLAN PROVIDING FOR A JOBLESS AID EXTENSION GPA GROUP'S PRIVATE OWNERS ARE WILLING TO CEDE CONTROL OF THE AIRCRAFTLEASING GIANT TO A NEW INVESTOR ACCORDING TO PEOPLE CLOSE TO THE SITUATION GE IS SAID TO BE A POTENTIAL INVESTOR CLINTON AND MIYAZAWA'S MEETING ENDED WITH A PLEDGE TO CHOOSE AN AGENDA FOR TRADE TALKS BY THE TIME MAJOR NATIONS MEET IN TOKYO FOR AN ECONOMIC SUMMIT BUT CONTENTIOUS TRADE HAGGLING BETWEEN THE US AND JAPAN IS SEEN LASTING FOR MONTHS OR YEARS THE US TRADE GAP WIDENED A BIT IN FEBRUARY AS EXPORT GROWTH REMAINED SLUGGISH REFLECTING FLAGGING OVERSEAS ECONOMIES THE DEFICIT WITH JAPAN WAS THE LARGEST TOTALING 73 OF THE GAP AMD MAY SHIP CLONES OF INTEL'S 486 CHIP A JUDGE SAID IN REVERSING A JURY VERDICT BUT AMD MUST WEIGH A SHORTTERM BONANZA AGAINST LEGAL RISKS IN OFFEXCHANGE TRADES INTEL STOCK FELL 15 TO 95 WHILE AMD WAS UP 4 TO 28 INDUSTRIAL PRODUCTION WAS STAGNANT IN MARCH AFTER HAVING SHOWN FAIRLY STRONG GAINS SINCE OCTOBER RAISING MORE QUESTIONS ABOUT THE STRENGTH OF THE RECOVERY ANALYSTS CITED A SEVERE SNOWSTORM ON THE EAST COAST GREYHOUND AND THE AMALGAMATED TRANSIT UNION APPEAR TO BE MAKING PROGRESS IN CONTRACT TALKS THAT WOULD END THEIR THREEYEAR LABOR BATTLE BANKAMERICA IS CLOSE TO AN AGREEMENT TO RELOCATE MOST OF ITS NEW YORK OPERATIONS TO THE WORLD TRADE CENTER WHICH WOULD MAKE IT THE FIRST MAJOR COMPANY TO MOVE TO THE TWIN TOWERS SINCE A TERRORIST ATTACK IN FEBRUARY MERCK RELEASED A PROPOSAL CALLING FOR DRUG COMPANIES TO SIGN THREEYEAR LEGALLY BINDING CONTRACTS THAT TIE ANNUAL PRICE RISES TO THE INFLATION RATE MERCK SAID THE PLAN WOULD CUT PRESCRIPTION DRUG SPENDING UP TO 9 BILLION WITHOUT PRICECONTROL LEGISLATION COMPANIES MAY OWE BILLIONS IN BACK TAXES AND INTEREST IF A PENDING SUPREME COURT CASE FAVORS THE IRS AT ISSUE IS THE ABILITY TO WRITE OFF THE VALUE OF A CONTINUING RELATIONSHIP WITH CUSTOMERS AFTER AN ACQUISITION DIGITAL EQUIPMENT PLANS TO UNVEIL TOMORROW WHAT ANALYSTS SAY ARE THE INDUSTRY'S FASTEST WORKSTATIONS CONTINENTAL AIRLINES' REORGANIZATION PLAN WAS CONFIRMED BY A BANKRUPTCY JUDGE CLEARING THE NEXTTOLAST HURDLE TO THE CARRIER'S EMERGENCE FROM CHAPTER 11 AFTER 28 MONTHS JONES DAY AGREED IN PRINCIPLE TO SETTLE A RESOLUTION TRUST CORP SUIT ACCUSING THE NATION'S SECONDLARGEST LAW FIRM OF CONTRIBUTING TO THE COLLAPSE OF LINCOLN SAVINGS & LOAN ASSOCIATION BELLCORE BUILT AN ALLMETAL MICROELECTRONIC STORAGE DEVICE THAT IT SAID MAY SOMEDAY REPLACE THE SILICON TRANSISTORS USED IN COMPUTER MEMORIES BONDS LEHMAN BROTHERS TREASURY INDEX 512549 OFF 1655 COMMODITIES OIL 2014 A BARREL OFF EIGHT CENTS DOW JONES FUTURES INDEX 12491 OFF 010 SPOT INDEX 12194 OFF 026 DOLLAR 11230 YEN OFF 080 16175 MARKS UP 00120 9304190046 930419 CORPORATE FOCUS POLICY MANAGEMENT TRIES TO RECOVER FROM STOCK PLUNGE SOFTWARE COMPANY IS HURT BY POSSIBILITY OF HEALTHCARE REFORMS BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL FOR YEARS POLICY MANAGEMENT SYSTEMS CORP WAS A PARADIGM OF PREDICTABILITY CRANKING OUT 20 EARNINGS GROWTH LIKE CLOCKWORK AS A REWARD FOR ITS SUREFOOTED PROFITABILITY ITS SHARE PRICE ON THE BIG BOARD ALWAYS REFLECTED A SWEET PREMIUM THIS MONTH ALL THAT CHANGED THE INSURANCESOFTWARE CONCERN BASED IN COLUMBIA SC DISCLOSED APRIL 5 THAT IT WOULD MISS ITS FIRSTQUARTER EARNINGS TARGET BY A MILE THAT WAS THE FIRST INDICATION THAT ANYTHING WAS AWRY AT THE COMPANY AND THE NEXT DAY ITS SHARE PRICE PLUNGED 43 IN ALL THE COMPANY HAS LOST 894 MILLION IN MARKET CAPITALIZATION SINCE THE DISCLOSURE A KEY PROBLEM FOR THE COMPANY PRESIDENT CLINTON'S HEALTHCARE REFORM PLANS THOSE PLANS STILL BEING DEBATED AND DEVELOPED HAVE SPAWNED AN ATMOSPHERE OF UNCERTAINTY AMONG HEALTHCARE INSURERS PROMPTING THEM TO POSTPONE DECISIONS ON WHAT SOFTWARE AND SYSTEMS MAY BE NEEDED IF THE NATION'S HEALTHCARE SYSTEM CHANGES DRASTICALLY AS MANY PREDICT IT WILL THE CHALLENGE NOW FOR POLICY MANAGEMENT ACCORDING TO INDUSTRY ANALYSTS WILL BE ADAPTING ITS HEALTHCARE SOFTWARE AND SERVICES TO SERVE A RADICALLY DIFFERENT HEALTHCARE ENVIRONMENT IF THEY ARE ABLE TO FIND A ROLE TO PLAY IN THIS NEW HEALTHCARE MARKET THEY'LL GET BACK ON TRACK SAYS JOHN S ORRICO A PORTFOLIO MANAGER AT SANDS BROTHERS & CO A NEW YORK INVESTMENT BANKING FIRM BUT FEW WALL STREET ANALYSTS THINK THE COMPANY WILL RETURN TO ITS HIGHFLYING WAYS ANY TIME SOON THE MEAN EARNINGS ESTIMATE FOR THE COMPANY FOR 1993 HAS FALLEN TO 248 A SHARE FROM 297 BEFORE ITS DISASTROUS DISCLOSURE I DON'T SEE A LIKELY SCENARIO OF ITS BUSINESS FALLING APART AND I DON'T THINK IT WILL SHRINK SAYS RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO RATHER IT'S A QUESTION OF SLOWER GROWTH G LARRY WILSON POLICY MANAGEMENT'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS HE IS CAUTIOUS ABOUT THE OUTLOOK FOR THE REST OF 1993 AND HE WON'T PREDICT WHEN THE COMPANY MIGHT GET BACK TO 20 GROWTH IN PROFITS BUT HE SAYS HE REMAINS CONFIDENT IT WILL DO WELL OVER THE LONG TERM HE POINTS OUT THAT POLICY MANAGEMENT WHICH WAS ORIGINALLY THE DATAPROCESSING ARM OF AN INSURANCE CONCERN SEIBELS BRUCE GROUP INC BEFORE BEING SPUN OFF IN 1981 MANAGED TO REBOUND TO STRONG GROWTH AFTER IT ENCOUNTERED A SIMILAR PROBLEM IN THE MID1980S IN 1985 PERSHARE EARNINGS ROSE ONLY SLIGHTLY AND THE NEXT YEAR THEY TOOK A SMALL DIP WHEN THE PROPERTY AND CASUALTY INSURANCE INDUSTRY FACING PROBLEMS DEFERRED PURCHASES IN THE MEANTIME THE COMPANY WHICH HAS BOUGHT BACK 970668 SHARES SINCE THE PRICE PLUNGE DOESN'T HAVE PLANS TO REDUCE ITS BUDGET OF 90 MILLION FOR RESEARCH AND DEVELOPMENT SPENDING THIS YEAR NOR DOES IT PLAN LAYOFFS IT MAY HOWEVER REDEPLOY SOME EMPLOYEES FROM THE HEALTHCARE AREA TO OTHER PROJECTS WHILE AWAITING AN IMPROVEMENT IN MARKET CONDITIONS POLICY MANAGEMENT WHICH LAST YEAR DERIVED ABOUT 18 OF ITS EARNINGS FROM ITS HEALTHCARE SEGMENT HAD BIG HOPES TO EXPAND THAT AREA TO 30 OF ITS EARNINGS BY THE MID1990S AND INDEED IT WAS RELYING ON THAT SEGMENT FOR MUCH OF ITS GROWTH BUT DURING THE FIRST QUARTER THE COMPANY SAYS SEVERAL HEALTHCARE INSURANCE CONTRACTS FOR SOFTWARE LICENSING AND SERVICES IT WAS COUNTING ON WERE POSTPONED IN ADDITION IN ONE INSTANCE A PROPERTY AND CASUALTY CUSTOMER HIT HARD BY CLAIMS FROM HURRICANE ANDREW DECIDED TO HOLD OFF ON A CONTRACT POLICY MANAGEMENT SAYS FINALLY IT SAYS A CONTRACT TO PROCESS AUTO POLICIES FOR THE STATE OF NEW JERSEY HAS BEEN WINDING DOWN FASTER THAN EXPECTED HURTING QUARTERLY REVENUE FRIDAY THE COMPANY'S SHARES CLOSED AT 45875 UP 375 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AND OFF 39125 FROM WHEN THE COMPANY PUBLISHED THE BAD NEWS FIRSTQUARTER REVENUE COULD BE 14 MILLION TO 15 MILLION BELOW ITS EXPECTATION OF 135 MILLION TO 136 MILLION AND PERSHARE PROFIT COULD FALL 26 CENTS TO 28 CENTS BELOW ITS EXPECTATION OF 70 CENTS A SHARE POLICY MANAGEMENT PREDICTS THE SLUMP IN ITS HEALTHCARE RELATED SALES WILL END ONCE IT BECOMES CLEAR WHAT SHAPE HEALTHCARE REFORM WILL TAKE AND IT BELIEVES IT WILL BE POISED TO CAPITALIZE ON THE DEMAND FOR NEW SOFTWARE AND SERVICES TO HANDLE THE REVAMPED HEALTHCARE SYSTEM THE COMPANY SAYS IT HAS ALREADY BEEN FOCUSING A LOT OF RESOURCES ON DESIGNING PRODUCTS TO CATER TO MANAGEDCARE FACILITIES CHANGE IN ANY OF OUR MARKET SEGMENTS IS GOOD BECAUSE COMPANIES NEED TO FIND NEW WAYS TO ADDRESS HOW TO DO BUSINESS AND THEY'RE MORE LIKELY TO TURN TO PROVIDERS OF SOFTWARE TO SOLVE IT SAYS JAMES P BROWN THE COMPANY'S SENIOR VICE PRESIDENT AND GENERAL COUNSEL THE COMPANY PREDICTS A MANAGEDCARE SYSTEM WILL REQUIRE EVEN MORE SOPHISTICATED SOFTWARE THAN THE CURRENT INDEMNITY SYSTEM BUT BEYOND REVAMPING ITS HEALTHCARE SEGMENT TO MEET THE NEEDS OF WHAT WILL LIKELY BE A VERY DIFFERENT MARKET POLICY MANAGEMENT FACES A HUGE CREDIBILITY PROBLEM SHAREHOLDERS AND WALL STREET ANALYSTS ARE ASKING HOW EXECUTIVES AT A COMPANY THAT ENJOYS ABOUT 90 OF ITS REVENUE ON A RECURRING BASIS AND HAS BUILT ITS REPUTATION ON MANAGING EARNINGS FOR PREDICTABILITY COULD GET CAUGHT BY SURPRISE IN EARLY MARCH THE COMPANY HELD AN ANALYSTS' MEETING AT ITS HEADQUARTERS AND SAID NOT A WORD ABOUT REVENUE CONCERNS THE COMPANY'S ANNUAL REPORT AND FORM 10K FILED ON MARCH 17 SPEAKS SANGUINELY OF ITS 1993 PROSPECTS A FLURRY OF SHAREHOLDER SUITS FILED SINCE THE DISCLOSURE POINT OUT THAT POLICY MANAGEMENT EXECUTIVES BAILED OUT MONTHS AGO SELLING LARGE PORTIONS OF THEIR STOCK HOLDINGS ALLEGEDLY BASED ON KNOWLEDGE THAT THE COMPANY'S BUSINESS WAS SLIPPING PUBLIC FILINGS SHOW MR WILSON SOLD MORE THAN 50000 SHARES AT PRICES RANGING FROM 76 TO 7850 A SHARE LAST NOVEMBER ALONE AND SHED 119584 SHARES FOR 57 MILLION DURING ALL OF 1992 MR WILSON WHO JOINED POLICY MANAGEMENT'S PREDECESSOR SOME 27 YEARS AGO AT AGE 19 SAID EXECUTIVES HAVE SIMILARLY SOLD STOCK FOR YEARS WHEN EXERCISING STOCK OPTIONS THE SELLING WAS ALSO MOTIVATED IN PART BY CONCERN ABOUT HIGHER TAXES UNDER A CLINTON ADMINISTRATION HE SAID SOME OF THE SHAREHOLDER SUITS ALSO ALLEGE THE COMPANY USED DECEPTIVE ACCOUNTING PRACTICES INCLUDING A PRACTICE OF ROBBING PETER TO PAY PAUL ONE SUIT ACCUSES THE THE COMPANY OF CONSISTENTLY AND IMPROPERLY RECORDING IN ONE QUARTER CERTAIN REVENUE FOR CONTRACTS EXECUTED IN A SUBSEQUENT QUARTER IN ORDER TO MEET ITS AMBITIOUS EARNINGS PROJECTIONS THE COMPANY FLATLY DENIES THE ACCOUNTING ALLEGATION AND SAYS THE SUITS ARE WITHOUT MERIT AND THAT IT WILL MOUNT A VIGOROUS DEFENSE COMPANY EXECUTIVES SAY THEY WERE CAUGHT BY SURPRISE AS MUCH AS ANYBODY BY THE REVENUE SHORTFALL THE COMPANY TYPICALLY CLOSES THE BULK OF ITS NEW CONTRACTS A KEY SOURCE OF GROWTH IN REVENUE NEAR EACH QUARTER'S END THUS MAKING IT IMPOSSIBLE TO HAVE PREDICTED EARLIER HOW DISAPPOINTING THE FIRST QUARTER WOULD BE I CAN UNDERSTAND WHY PEOPLE ARE CONCERNED SAYS MR BROWN BUT THE NATURE OF THE BUSINESS IS THERE CAN BE SURPRISES 9304190045 930419 BUSINESS BRIEF MAZDA MOTOR CORP DEVELOPMENT OF NEW ENGINE PROPELS 93 RISE IN STOCK SHARES OF JAPANESE AUTO MAKER MAZDA MOTOR CORP JUMPED 93 FRIDAY AFTER THE COMPANY ANNOUNCED THAT IT DEVELOPED A NEW ENERGYEFFICIENT ENGINE MAZDA SAID THE ENGINE IMPROVES FUEL EFFICIENCY BY 10 TO 15 COMPARED WITH CONVENTIONAL MOTORS THE COMPANY SAID THE DEVELOPMENT IS THE FIRST APPLICATION OF SOCALLED MILLERCYCLE ENGINES IN AUTOMOBILES AND THAT IT CAN PRODUCE 50 MORE TORQUE OR TWISTING POWER THAN ENGINES NOW IN USE THIS MEANS THE NEW ENGINE CAN ACHIEVE THE POWER OF LARGER ENGINES WITH ONLY TWOTHIRDS THE SIZE MAZDA SAID SHARES IN MAZDA WHICH SAID IT WILL INSTALL THE ENGINES IN A CAR TO BE MARKETED SOON ROSE 51 YEN TO 601 YEN 531 ON THE TOKYO STOCK EXCHANGE FRIDAY SEPARATELY MAZDA SAID IT IS NEGOTIATING WITH ISUZU MOTORS LTD TO PURCHASE 48000 ISUZU DIESEL ENGINES ANNUALLY FOR MAZDA CARS AND TRUCKS THE TRANSACTION WOULD ENABLE MAZDA TO CUT DIESELENGINE RESEARCH AND DEVELOPMENT COSTS ISUZU PLANS TO PULL OUT OF PASSENGER CAR PRODUCTION THIS YEAR TO FOCUS ON PRODUCING TRUCKS AND DIESEL ENGINES 9304190044 930419 CREDIT MARKETS MUNIS' PLACID TURF FACES INVASION OF TIGRS OTHER EXOTIC CREATURES BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE MUNICIPAL BOND MARKET LONG POPULAR WITH MOM AND POP FOR ITS RELATIVELY SIMPLE TAXEXEMPT INVESTMENTS IS ABOUT TO ENTER A MORE COMPLEX AND IN SOME CASES RISKIER NEW WORLD THAT'S BECAUSE WALL STREET PLANS TO POOL MUNDANE MUNICIPAL BONDS AND CARVE THEM UP INTO EXOTIC SECURITIES TO BE SOLD TO INVESTORS OF ALL STRIPES FROM MUTUAL FUNDS AND MILLIONAIRES TO CARPENTERS AND SCHOOLTEACHERS ALREADY THREE WALL STREET GIANTS MERRILL LYNCH & CO DEAN WITTER DISCOVER & CO AND AMERICAN EXPRESS CO'S LEHMAN BROTHERS HAVE FILED SEPARATE PLANS WITH THE SEC THAT WOULD INVADE THE FRIENDLY FAMILIARITY OF THE MUNI MARKET WITH ARCANE NEW PRODUCTS SUCH AS SAVRTRS CORES AND PRINCIPAL STRIP MUNICIPAL TIGRS THE SLICING AND DICING IS MOVING INTO HIGH GEAR THANKS TO A LITTLENOTICED RULING BY THE SECURITIES AND EXCHANGE COMMISSION LATE LAST YEAR BUT THE MUTUAL FUND INDUSTRY ISN'T HAPPY TO SEE WALL STREET SECURITIES FIRMS MARCHING TOWARD ITS TURF AND SOME MONEY MANAGERS SAY THEY FEAR FOR THE SMALL INVESTOR WHO FAILS TO COMPREHEND THE RISKS THE LESS COMPLEXITY THE BETTER SAYS JAMES J COONER SENIOR VICE PRESIDENT OF TAXEXEMPT BOND MANAGEMENT AT BANK OF NEW YORK GIVEN THAT INDIVIDUAL INVESTORS STILL OWN MORE THAN HALF OF ALL OUTSTANDING MUNICIPAL ISSUES THIS DEVELOPMENT CONCERNS ME WALL STREET SAYS IT WON'T AIM THE RISKIEST PRODUCTS AT SMALL INVESTORS AND BIG INVESTORS SEEM HAPPY TO EXPLORE ANY NEW WAY TO BOOST YIELDS INSTITUTIONAL INVESTORS ARE SEEING THEIR OLD HIGHYIELDING BONDS GET CALLED AWAY AND YIELDS HAVE SUNK TO 56 FOR A TOPRATED 30YEAR MUNICIPAL BOND DOWN ABOUT ONE PERCENTAGE POINT IN A YEAR THE NEW STRUCTURES WOULD VARY AND THEY STILL AWAIT AN SEC RESPONSE BUT OFFICIALS OF MERRILL LYNCH SAY THE NEW PRODUCTS AMOUNT TO THE MUNICIPALMARKET EQUIVALENT OF THE MORTGAGEBACKED MARKET'S CMO OR COLLATERALIZED MORTGAGE OBLIGATION ONE OF WALL STREET'S MOST PROFITABLE AND COMPLEX CREATIONS OF THE PAST DECADE THE PRODUCTS WOULD BE CREATED BY COLLECTING INVESTMENTGRADE MUNICIPAL BONDS IN THE OPEN MARKET AND REPACKAGING THE POOL INTO AN ARRAY OF SPECIALLY TAILORED INSTRUMENTS INCLUDING VOLATILE CREATURES SUCH AS INVERSE FLOATERS AND INTERESTONLY STRIPS IN LAST YEAR'S SEC RULING WALL STREET ESSENTIALLY GOT AN EXEMPTION TO THE INVESTMENT COMPANY ACT OF 1940 WHICH GOVERNS MUTUAL FUNDS PREVIOUSLY THE SECURITIES FIRMS WERE ALLOWED TO POOL AND REPACKAGE ONLY CERTAIN ASSETS NOTABLY MORTGAGES AND CREDITCARD DEBTS BUT THE NEW RULING PERMITS SECURITIES FIRMS TO REPACKAGE A WIDE ARRAY OF ASSETS WITH INVESTMENTGRADE RATINGS AND SELL THEM AS NEW SECURITIES SOMETHING ONLY INVESTMENT COMPANIES SUCH AS MUTUAL FUNDS WERE PERMITTED TO DO BEFORE THE CHANGE DOESN'T PLEASE MATTHEW P FINK PRESIDENT OF THE INVESTMENT COMPANY INSTITUTE A MUTUAL FUND TRADE GROUP HE SAYS THAT SUCH POOLS LOOK JUST LIKE REGULAR MUTUAL FUNDS AND POSE THE SAME RISKS BUT THEY'RE NOT BEING REGULATED LIKE MUTUAL FUNDS BECAUSE OF THE SEC RULING THE RULING HAS OPENED THE DOOR SO THAT ANYONE IN THE WORLD CAN DO THIS HE ADDS IT COULD OPEN THE WAY TO LESS SCRUPULOUS FIRMS THAN THE FEW THAT HAVE ALREADY MADE SEC FILINGS MERRILL CALLS ITS NEW PRODUCTS PRINCIPAL STRIP MUNICIPAL TIGRS AND COUPON STRIP MUNICIPAL TIGRS TIGRS STANDS FOR TAXEXEMPT INVESTMENT GROWTH RECEIPTS LEHMAN BROTHERS CALLS THEM SAVRTRS AND RITRS AND DEAN WITTER CALLS THEM CORES DESPITE THE DIFFERENT EXOTIC NAMES MANY OF THE PRODUCTS ARE VERY SIMILAR WALL STREET IS HOPING THAT THE MARKET FOR THE NEW SECURITIES COULD BRING IT THE SAME SORT OF EXPLOSIVE GROWTH AS CMOS SOME OF LAST YEAR'S BIGGEST BONUSES WENT TO CMO SALESPEOPLE AS WITH CMOS THE NEW SECURITIES WHICH WILL BE CREATED BY ISOLATING INTEREST OR PRINCIPAL PAYMENTS IN AN UNDERLYING POOL OF MUNICIPAL BONDS WILL BEHAVE MUCH DIFFERENTLY THAN PLAINVANILLA MUNICIPAL BONDS HOWEVER THE THREE FIRMS EXPECT THAT THESE NEW SECURITIES WILL ALSO BE TAXEXEMPT SOME WILL YIELD MORE WHEN SHORTTERM RATES RISE OTHERS WILL YIELD LESS SOME WILL RECEIVE ONLY A PORTION OF THE COUPON PAYMENTS ON THE UNDERLYING BOND INSTEAD OF BUYING A MUNICIPAL BOND WITH A FIXED COUPON FOR EXAMPLE AN INVESTOR MIGHT BUY AT A DEEP DISCOUNT A SINGLE COUPON PAYMENT TO BE MADE IN FIVE YEARS BUT EXTRA RISKS INCREASE THE CHANCE OF LOSS SOME PRODUCTS ARE MODELED AFTER THE INTERESTONLY STRIPS OF THE MORTGAGEBACKED MARKET WHOSE PRICES SLID EARLIER THIS YEAR AS INTEREST RATES PLUNGED CALLED IOS THESE BONDS ARE SOLD AT A DEEP DISCOUNT PAY INTEREST BUT NO PRINCIPAL AND ARE EXTREMELY VOLATILE ACCORDING TO A PRELIMINARY SEC FILING BY MERRILL THE PRICE SWINGS IN SOME OF THE FIRM'S TIGRS WHICH DON'T PAY REGULAR INTEREST ARE LIKELY TO BE GREATER THAN CHANGES IN THE MARKET PRICES OF SECURITIES WHICH PAY INTEREST PERIODICALLY MERRILL ALSO WARNS THAT IF THE UNDERLYING BONDS HAPPEN TO BE REDEEMED VERY QUICKLY INVESTORS IN SOME TIGRS MAY NOT FULLY RECOUP THEIR INITIAL INVESTMENT MERRILL LYNCH LEHMAN BROTHERS AND DEAN WITTER HOPE TO PROFIT AS INVESTORS GROW SO DISSATISFIED WITH TODAY'S LOW YIELDS THAT THEY ACCEPT GREATER RISKS IN THE TAXEXEMPT MARKET THE FIRMS PLAN TO SELL TO SOPHISTICATED INSTITUTIONS LIKE BOND MUTUAL FUNDS BUT THEY ARE CLEARLY TARGETING INDIVIDUALS AS WELL IN MERRILL'S PRELIMINARY FILING FOR EXAMPLE THE FIRM SAYS SOME OF THE NEW BONDS WILL BE ISSUED IN MINIMUM DENOMINATIONS OF 25000 ONE MERRILL OFFICIAL SAYS THAT THE ACTUAL MINIMUM COULD BE LOWER FOR SECURITIES SOLD AT A DEEP DISCOUNT TO FACE VALUE LIKE IOS OFFICIALS OF ALL THREE FIRMS SAY THAT EVEN THOUGH THEY MAY BE MARKETING SOME OF THE NEW PRODUCTS TO SMALL INVESTORS SUCH INVESTORS WON'T BE TARGETED FOR PURCHASE OF THE MOST VOLATILE SECURITIES PHILIP KOROT HEAD OF PUBLIC FINANCE AT DEAN WITTER SAYS HIS FIRM'S FILING ISN'T DIRECTED TOWARDS DOING INVERSE FLOATERS OR OTHER SIMILARLY VOLATILE SECURITIES INVERSE FLOATERS PAY MORE THAN A PLAINVANILLA BOND IF SHORTTERM RATES FALL AND LESS IF THEY RISE SOME OF THE FILINGS BY OTHER FIRMS HAVE A SMORGASBORD OF THINGS THEY COULD DO HE SAYS BUT I DON'T WANT INDIVIDUAL INVESTORS IN ESOTERIC AND EXOTIC SECURITIES SUCH VOLATILE AND LEVERAGED SECURITIES WOULD BE HIGHLY INAPPROPRIATE FOR THE SMALL INVESTOR MR KOROT SAYS MERRILL LYNCH RECENTLY STARTED A SEPARATE PROGRAM TO SELL A TYPE OF MUNICIPAL BOND INVERSE FLOATERCALLED TEEMS TO INDIVIDUALS TEEMS ARE MADE FROM NEWLY ISSUED BONDS MUNICIPAL TIGRS FROM OLDER BONDS TRADING IN THE RESALE MARKET SAMUEL B CORLISS JR MANAGING DIRECTOR OF MUNICIPAL DERIVATIVES SAYS IT WOULD BE DIFFICULT TO USE THE MUNICIPAL TIGR PROGRAM TO CREATE MORE TEEMS AND THE FIRM DOESN'T PLAN TO DO SO SINCE MOST OF THE NEW SECURITIES WILL BE PUBLICLY REGISTERED AND CREATED FROM SECURITIES ALREADY TRADING THEY COULD BE MORE PROFITABLE FOR WALL STREET AND EASIER TO SELL THAN UNREGISTERED SECURITIES INVERSE FLOATERS FOR EXAMPLE HAVE BEEN ONE OF THE MOST POPULAR AND PROFITABLE MUNICIPAL SECURITIES AROUND FOR BOTH SELLERS AND SO FAR BUYERS THESE VOLATILE SECURITIES CAN BE CREATED IN THE NEWISSUE MARKET ONLY WITH THE ISSUER'S PERMISSION UNDERWRITERS HAVE TO PASS ON PART OF THE EXTRA INCOME FROM SELLING INVERSE FLOATERS TO THE ISSUER AND THERE MAY BE LIMITS ON HOW MUCH A MUTUAL FUND CAN OWN AS MANY AREN'T PUBLICLY REGISTERED OR EASILY TRADED BUT IF SECURITIES FIRMS ARE PERMITTED TO BUY MUNI BONDS IN THE OPEN MARKET PUT THEM IN POOLS AND MAKE REGISTERED INVERSE FLOATERS AT WILL THERE WON'T BE A NEED TO NEGOTIATE WITH AN ISSUER AND MUTUAL FUNDS AS WELL AS INDIVIDUALS MAY BE INTERESTED IN BUYING MORE INVERSE FLOATERS IF THEY ARE REGISTERED BECAUSE THEY MAY BE EASIER TO BUY AND SELL THAN UNREGISTERED INVERSE FLOATERS FOR LEHMAN BROTHERS RAVENOUS DEMAND AMONG INSTITUTIONAL INVESTORS FOR MORE INVERSE FLOATERS WAS THE MAIN REASON FOR ITS SEC FILING ACCORDING TO GARY GRAY A SENIOR VICE PRESIDENT MOST TREASURY NOTES FINISHED LITTLE CHANGED TO SLIGHTLY LOWER WHILE THE BENCHMARK 30YEAR BOND NEVER RECOVERED MUCH FROM THE SHARP LOSS IT SUFFERED DURING A SHORT BOUT OF SELLING EARLY IN THE DAY THE 30YEAR TREASURY BOND FINISHED WITH A LOSS OF MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH A 1000 FACE VALUE AS ITS YIELD ROSE TO 675 FROM 671 ON THURSDAY THE MARKET GOT OFF TO A SLOW START FRIDAY AS IS OFTEN THE CASE AT THE END OF WEEK BY LATE MORNING HOWEVER THE COMBINATION OF DEALERS REVERSING SOCALLED CURVEFLATTENING TRADES AND A WAVE OF PROFITTAKING DROVE DOWN BOND PRICES A CURVEFLATTENING TRADE IS DESIGNED TO TAKE ADVANTAGE OF A NARROWING GAP BETWEEN SHORTTERM AND LONGTERM INTEREST RATES THE GAP BETWEEN THE TWOYEAR NOTE AND THE 30YEAR BOND NARROWED ON THURSDAY TO 296 PERCENTAGE POINTS FROM 30 PERCENTAGE POINTS BUT WIDENED TO 298 PERCENTAGE POINTS FRIDAY AS TRADERS REVERSED THEIR POSITIONS THIS HELPED DEPRESS BOND PRICES IN THE MUNICIPAL BOND MARKET TRADERS AND INVESTORS ARE FOCUSING ON THIS WEEK'S OFFERING OF 3 BILLION OF REVENUE ANTICIPATION NOTES BY CALIFORNIA THE OFFERING SLATED FOR TOMORROW WILL BE MADE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS 9304190042 930419 BUSINESS BRIEFS LOUISIANAPACIFIC CORP PLANS TO BUILD A PLANT IN IRELAND TO MAKE ORIENTEDSTRAND BOARD IN A JOINT VENTURE WITH THE IRISH FORESTRY BOARD TERMS WEREN'T RELEASED PUBLICKER INDUSTRIES INC COMPLETED THE SALE OF NEARLY ALL THE ASSETS OF ITS AMERICAN CRYOGAS INDUSTRIES INC UNIT FOR 14 MILLION TO MG INDUSTRIES INC A UNIT OF HOECHST AG OF GERMANY HARMON INTERNATIONAL INDUSTRIES INC COMPLETED ITS ACQUISITION OF LEXICON INC A MAKER OF DIGITAL AUDIOSIGNAL PROCESSING EQUIPMENT FOR ABOUT 45 MILLION CROWN CORK & SEAL CO COMPLETED ITS 175 MILLION ACQUISITION OF VAN DORN CO A CLEVELAND MAKER OF CONTAINERS AND PLASTICINJECTION MOLDING MACHINES MAIN STREET & MAIN INC SIGNED A DEFINITIVE AGREEMENT WITH KANSAS CITY CAFE CO TO BUY FOUR TGI FRIDAY'S RESTAURANTS IN DENVER KANSAS CITY MO OVERLAND PARK KAN AND OMAHA NEB TERMS WEREN'T DISCLOSED IN ADDITION MAIN STREET IS BUYING DEVELOPMENT RIGHTS FOR TGI FRIDAY'S RESTAURANTS FOR MOST OF COLORADO KANSAS AND METROPOLITAN OMAHA AND KANSAS CITY MORRISON KNUDSEN CORP WILL PERFORM DISTRIBUTION ADMINISTRATIVE AND MAINTENANCE SERVICES AT INTERNATIONAL BUSINESS MACHINES CORP'S MECHANICSBURG PA DISTRIBUTION CENTER UNDER A MULTIYEAR PACT 9304190041 930419 SECURITIES OFFERINGS CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ACM MUNICIPAL SECURITIES INITIAL SIX MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC ASTRO TANKERS LTD FIVE MILLION COMMON SHARES VIA LEHMAN BROTHERS COPLEY PHARMACEUTICALS INC SECONDARY OFFERING OF 1825000 COMMON SHARES VIA BEAR STEARNS & CO FIDELITY NATIONAL FINANCIAL INC 1750000 COMMON SHARES VIA MERRILL LYNCH & CO INTERLINQ SOFTWARE CORP INITIAL 25 MILLION COMMON SHARES VIA PIPER JAFFRAY INC JABIL CIRCUIT INC INITIAL 3375000 COMMON SHARES VIA BEAR STEARNS JOHN B SANFILIPPO & SON INC 24 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP KANEB PIPELINE PARTNERS LP 2250000 PREFERRED UNITS VIA SMITH BARNEY HARRIS UPHAM MARTIN COLORFI INC INITIAL 17 MILLION COMMON SHARES VIA ROBINSONHUMPHREY MOHAWK INDUSTRIES INC TWO MILLION COMMON SHARES VIA FIRST BOSTON CORP MUNICIPAL ADVANTAGE FUND INC INITIAL THREE MILLION COMMON SHARES VIA OPPENHEIMER O'REILLY AUTOMOTIVE INC 23 MILLION COMMON SHARES VIA DONALDSON LUFKIN JENRETTE SHOLODGE INC 1130000 COMMON SHARES VIA MONTGOMERY SECURITIES TENNECO INC 235 MILLION COMMON SHARES VIA FIRST BOSTON THE 3DO CO INITIAL 29 MILLION SHARES VIA MONTGOMERY SECURITIES TRANSAMERICA CORP INITIAL 30 MILLION COMMON SHARES VIA MORGAN STANLEY & CO WPL HOLDINGS 15 MILLION COMMON SHARES VIA MERRILL LYNCH WEATHERFORD INTERNATIONAL INC EIGHT MILLION COMMON SHARES VIA MERRILL LYNCH NEW JERSEY TRANSPORTATION TRUST FUND AUTHORITY 500 MILLION 1993 SERIES A TRANSPORTATION SYSTEM BONDS VIA COMPETITIVE BIDDING WISCONSIN 124 MILLION SERIES 1993 GENERAL OBLIGATION BONDS VIA COMPETITIVE BIDDING SAN FRANCISCO CITY AND COUNTY 105 MILLION VARIOUS 1993 IMPROVEMENT BONDS VIA COMPETITIVE BIDDING CALIFORNIA3 BILLION 1993 SERIES A REVENUE ANTICIPATION NOTES VIA A LEHMAN BROTHERS GROUP LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY 580 MILLION BONDS VIA A BEAR STEARNS & CO GROUP PUBLIC BUILDING COMMISSION OF ILLINOIS 335 MILLION BONDS VIA A MERRILL LYNCH GROUP PIEDMONT MUNICIPAL POWER AGENCY SC 144 MILLION REVENUE REFUNDING BONDS VIA A DONALDSON LUFKIN GROUP MISSISSIPPI HOSPITAL EQUIPMENT & FACILITIES AUTHORITY 100 MILLION REVENUE BONDS VIA A GOLDMAN SACHS & CO GROUP BUCKSPORT MAINE 95 MILLION SOLIDWASTE DISPOSAL REVENUE BONDS VIA A GOLDMAN SACHS GROUP HOUSTON HOUSING FINANCE CORP 91 MILLION REVENUE REFUNDING BONDS VIA A GOLDMAN SACHS GROUP 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 9304190040 930419 DOLE DEMANDS FURTHER CUTS IN STIMULUS BILL SENATE GOP LEADER SAYS HE'S WILLING TO ALLOW VOTE ON JOBLESS BENEFITS BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE MINORITY LEADER ROBERT DOLE LEADING A REPUBLICAN SNUB OF PRESIDENT CLINTON'S COMPROMISE STIMULUS PACKAGE SAID THE PLAN WOULD HAVE TO BE STRIPPED DOWN EVEN FURTHER TO HAVE ANY SHOT AT PASSAGE IN AN INTERVIEW YESTERDAY ON NBC'S MEET THE PRESS PROGRAM THE KANSAS REPUBLICAN POINTED OUT THAT MR CLINTON HASN'T WON THE VOTE OF ANY REPUBLICAN SENATOR DESPITE VIGOROUS EFFORTS LAST WEEK THAT CULMINATED FRIDAY WITH THE PRESIDENT'S OFFER TO CUT THE 16 BILLIONPLUS PACKAGE BY 4 BILLION AS A RESULT SEN DOLE SAID THE GOP FILIBUSTER WHICH STALEMATED THE PACKAGE STILL HOLDS BUT MR DOLE OFFERED A SMALL STEP TOWARD COMPROMISE HE SAID HE WAS WILLING TO ALLOW A SEPARATE VOTE ON THE PART OF THE PACKAGE THAT PROVIDES 4 BILLION FOR THE EXTENSION OF UNEMPLOYMENT COMPENSATION BENEFITS PERHAPS AS EARLY AS TODAY HE ALSO SUGGESTED WITHOUT ELABORATION THAT HE WOULD SUPPORT APPROVAL OF A SMALL AMOUNT OF MONEY FOR CHILD IMMUNIZATION SUMMER JOBS PROGRAMS AND PERHAPS OTHER MINOR PARTS OF THE PACKAGE SEN DOLE AND SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE ARE SCHEDULED TO MEET TODAY TO DISCUSS THE FUTURE OF THE PACKAGE DESPITE GOP RESISTANCE MR CLINTON AND OTHER DEMOCRATS CONTINUED TO PUSH FOR THE NEWLY MODIFIED PACKAGE OVER THE WEEKEND PRESIDENT CLINTON WENT TO PITTSBURGH TO MAKE A PERSONAL APPEAL WHILE SEN MITCHELL ALSO APPEARING ON MEET THE PRESS MADE HIS PITCH IN RESPONSE TO SEN DOLE'S REMARKS THESE ACTIONS FOLLOWED THE PRESIDENT'S UNILATERAL DECISION TO PARE HIS PACKAGE IN THE FACE OF NEARCERTAIN DEFEAT IN THE SENATE HE PROPOSED TO SLASH MOST OF THE PROGRAMS BY 44 WHILE FUNDING SEVEN PROGRAMS WHICH HE CALLED ESSENTIAL AT THEIR ORIGINAL LEVELS AMONG THE PROGRAMS LEFT UNTOUCHED WERE THOSE SEN DOLE SAID HE WAS WILLING TO KEEP AT LEAST IN PART THE UNEMPLOYMENT COMPENSATION EXTENSION CHILD IMMUNIZATION AND SUMMER JOBS THE WHITE HOUSE STRATEGY ASSUMES THAT THE REPUBLICANS WILL EVENTUALLY BUCKLE AND ACCEPT A COMPROMISE WHITE HOUSE AIDES CONTEND THAT THE DOZEN OR SO MODERATE REPUBLICANS BEING TARGETED FOR CRITICISM ACTUALLY FAVOR THE JOBCREATING PROGRAMS AND THEY PREDICT THAT MODERATE REPUBLICANS WOULD LIKE TO VOTE FOR SOME VERSION OF THEM ESPECIALLY BECAUSE THE SENATE IS LIKELY TO TAKE UP SOON A SEPARATE MEASURE THAT WOULD INCREASE AID TO RUSSIA THE AIDES ARGUE THAT THE LAWMAKERS WILL WANT TO VOTE FOR SPENDING IN THEIR OWN STATES BEFORE THEY VOTE FOR SPENDING ABROAD WHAT'S MORE DEMOCRATS ARE PREPARING TO ARGUE THAT IF THE ECONOMY SOURS SOME OF THE BLAME CAN BE SHIFTED TO THE REPUBLICANS FOR HOLDING UP THE ECONOMIC STIMULUS PACKAGE THEY ALREADY ARE ACCUSING THE SENATE REPUBLICANS OF GRIDLOCK BEFORE THE JUSTCONCLUDED EASTER RECESS ALL 43 REPUBLICAN SENATORS VOTED AGAINST MOVING FORWARD WITH THE LEGISLATION PREVENTING THE DEMOCRAT MAJORITY FROM GETTING THE 60 VOTES NEEDED TO CUT OFF DEBATE AND TO VOTE ON THE LEGISLATION FOR THEIR PART REPUBLICANS HAVE SAID THEY COULD SUPPORT MAJOR PARTS OF THE PACKAGE IF ANY INCREASE IN SPENDING IS IMMEDIATELY PAID FOR BY CUTS ELSEWHERE YESTERDAY SEN DOLE ARGUED THAT BLOCKING A VOTE ON A BILL THAT DOESN'T IMMEDIATELY PAY FOR ITSELF IS GOOD ECONOMIC POLICY NOT GRIDLOCK PRESIDENT CLINTON DOESN'T WANT TO FOCUS ON THE BASIC ISSUE PAYING FOR IT HE SAID THE RHETORIC INTENSIFIED OVER THE WEEKEND WITH THE HELP OF SATELLITE INTERVIEWS MR CLINTON TOOK AIM AT GOP SENATORS IN PENNSYLVANIA NEW YORK AND VERMONT HE ARGUED THAT THE SPENDING PACKAGE WOULD ULTIMATELY BE PAID FOR WHEN HIS ENTIRE BUDGET IS ADOPTED LATER THIS YEAR HE ALSO DECLARED THE PRESIDENT'S GOT A SWIMMING POOL THE SENATE HAS A SWIMMING POOL WHY SHOULDN'T THE PEOPLE HAVE A SWIMMING POOL THE STIMULUS PACKAGE INCLUDES MONEY FOR LOCAL COMMUNITYDEVELOPMENT PROJECTS THAT COULD BE USED TO FUND SWIMMING POOLS THE GOP FOUGHT BACK WITH VIDEOTAPED PROPAGANDA OF THEIR OWN AS WELL AS PERSONAL VISITS AROUND THE COUNTRY BY REPUBLICAN LEADERS SEN DOLE COUNTERED THE PRESIDENT'S COMMENTS BY IMPLYING THAT PEOPLE WANT PRUDENT AND FISCALLY CONSERVATIVE GOVERNMENT NOT NEW SPENDING ON SWIMMING POOLS FIRM THE PRESIDENT'S STEPPEDUP RHETORIC AND 4 BILLION CONCESSION DIDN'T SEEM TO CRACK THE OPPOSITION OF THE SENATE REPUBLICANS MODERATE REPUBLICANS WHO HAD BEEN PRESSURED BY THE WHITE HOUSE TO SWITCH SIDES WERE UNSWAYED VERMONT SEN JIM JEFFORDS CHARACTERIZED MR CLINTON'S OFFER AS AT BEST A GOOD FIRST STEP AIDES TO TWO OTHER SENATORS WHO ARE AMONG MR CLINTON'S TARGETS SENS JOHN CHAFEE OF RHODE ISLAND AND WILLIAM COHEN OF MAINE ALSO SAID THEIR BOSSES WOULD DEMAND FURTHER CUTS SEN ALFONSE D'AMATO CALLED THE CLINTON CHANGES WINDOWDRESSING AND COMPLAINED THAT THE PLAN STILL ADDED TO THE DEFICIT AND FUNDED PROGRAMS THAT WEREN'T NECESSARY TO MEET EMERGENCIES OR STIMULATE THE ECONOMY LIKE OTHER REPUBLICANS THE NEW YORKER CRITICIZED ADMINISTRATION EFFORTS TO PRESSURE THE HOLDOUTS IN THEIR HOME STATES DURING THE RECESS THE ADMINISTRATION'S TACTICS INCLUDED ISSUING NEWS RELEASES DETAILING HOW MUCH FEDERAL MONEY COULD BE LOST IN EACH SENATOR'S STATE IF THE SPENDING PACKAGE DIED IF YOU REALLY WANT TO BE SERIOUS YOU DON'T TRY TO BLACKJACK SOMEONE INTO SUPPORTING YOUR VIEWS BY PUTTING OUT A RIDICULOUS RELEASE SAYING SEN D'AMATO'S GOING TO COST THE STATE OF NEW YORK THIS AMOUNT OF MONEY HE CHARGED IT'S REALLY AMATEUR HOUR SEN JEFFORDS RECEIVED CALLS FROM SEVERAL TOP ADMINISTRATION OFFICIALS INCLUDING LABOR SECRETARY ROBERT REICH HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA AND VICE PRESIDENT AL GORE SEN JEFFORDS AND OTHER REPUBLICANS ALSO RECEIVED PLEAS FROM UNIONISTS AND OTHER INTEREST GROUPS THAT HAD SUPPORTED THEM IN PAST CAMPAIGNS BUT GENERALLY THE REPUBLICANS WERE SURPRISED THAT THE OVERALL PRESSURE WASN'T GREATER AND THAT THE PRESIDENT HIMSELF HADN'T DIRECTLY SOLICITED THEIR SUPPORT JACKIE CALMES CONTRIBUTED TO THIS ARTICLE 9304190039 930419 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR TO ACCOUNT FOR THE NORMAL DROP IN HOME BUILDING DURING THE WINTER THE COMMERCE DEPARTMENT SEASONALLY ADJUSTS THE DATA IN ITS MONTHLY REPORTS ON HOME CONSTRUCTION BUT IT IS UNLIKELY THE COMMERCE DEPARTMENT'S ALLOWANCE OF INCLEMENT WEATHER ANTICIPATED A STORM AS POWERFUL AS THE MIDMARCH BLIZZARD THAT SWEPT THE EAST SAID MARILYN SCHAJA AN ECONOMIST OF DONALDSON LUFKIN & JENRETTE MS SCHAJA SAYS THE DEPARTMENT'S REPORT SCHEDULED FOR RELEASE THIS WEEK WILL SHOW THE STORM PROBABLY CAUSED A 15 DROP IN HOUSING STARTS FOR THE MONTH EVEN AFTER THE SEASON ADJUSTMENTS ARE TAKEN INTO ACCOUNT WE HAD AT LEAST ONE WHOLE WEEKEND THAT PEOPLE ESSENTIALLY DID NOT MOVE FROM THEIR HOMES THAT AFFECTS SALES AND STARTS OF HOMES MS SCHAJA SAID SEASONAL FACTORS ARE SUPPOSED TO ADJUST FOR TYPICAL WINTER WEATHER BUT WHAT WE SAW WAS MUCH WORSE THAN TYPICAL SHE SAID SOUNDING AN OPTIMISTIC NOTE SHE SAID THE UNDERLYING FORCES IN THE HOUSING MARKET REMAIN STRONG AND THEY SHOULD BOOST STARTS AS THE YEAR PROGRESSES MORTGAGE RATES ONE OF THE MOST INFLUENTIAL POWERS IN THE MARKET CONTINUE TO HOVER NEAR 20YEAR LOWS SHE SAID CONSUMER CONFIDENCE ANOTHER FACTOR AFFECTING POTENTIAL HOMEBUYERS HAS EDGED DOWN RECENTLY BUT IS NOTHING TO WORRY ABOUT MS SCHAJA ADDED 9304190038 930419 INTERNATIONAL BRIEF BERJAYA GROUP BHD MALAYSIAN CONSORTIUM SEES WORK ON SEWERAGE SYSTEM BERJAYA INDUSTRIAL BHD SAID IT WILL PARTICIPATE IN A GROUP THAT RECEIVED IN PRINCIPLE A MULTIBILLIONDOLLAR CONTRACT TO BUILD UPGRADE AND MANAGE MALAYSIA'S SEWERAGE SYSTEM BERJAYA SAID INDAH CONSORTIUM SDN BHD WHICH WAS SET UP FOR THE PROJECT HAS RECEIVED A LEWARD FROM THE MALAYSIAN GOVERNMENT FOR THE PRIVATIZATION OF THE NATION'S SEWERAGE NETWORK THE MALAYSIAN COMPANY SAID THE FINAL CONTRACT IS STILL SUBJECT TO FURTHER NEGOTIATIONS ON CERTAIN SPECIFIC TERMS AMONG THE TERMS STILL TO BE NEGOTIATED IS A M500 MILLION US1935 MILLION LOWINTEREST LOAN FROM THE GOVERNMENT PEOPLE FAMILIAR WITH THE PROJECT HAVE VALUED THE CONTRACT AT M627 BILLION WHICH WOULD MAKE IT MALAYSIA'S LARGESTEVER PRIVATIZATION ARRANGEMENT BERJAYA A 63OWNED UNIT OF BERJAYA GROUP BHD SAID IT WOULD INVEST M20 MILLION FOR 20 OF INDAH'S M100 MILLION ISSUED SHARE CAPITAL BERJAYA GROUP IS 524OWNED BY TAN SRI VINCENT TAN CHEE YIOUN A POLITICALLY CONNECTED MALAYSIAN ENTREPRENEUR THE MALAYSIAN UNIT OF BRITAIN'S NORTH WEST WATER GROUP PLC WILL HAVE A 25 STAKE IN THE CONSORTIUM 9304190037 930419 DUTCH JOB GROWTH STAGNATES AMSTERDAM THE NUMBER OF JOBS IN THE NETHERLANDS GREW BY ONLY 48000 BETWEEN YEAREND 1991 AND YEAREND 1992 THE SMALLEST GROWTH SINCE 1984 GOVERNMENT STATISTICIANS SAID THE CENTRAL BUREAU FOR STATISTICS NOTED THAT THE SITUATION IS PARTICULARLY GLOOMY IN INDUSTRY AND CONSTRUCTION SECTORS WHERE NUMBERS DECLINED FOR THE SECOND YEAR IN A ROW JOBS IN THE RETAIL AND FOOD SECTOR FELL BY 6000 AND WHILE THE NUMBER FOR SERVICE INDUSTRIES CONTINUED TO CLIMB GROWTH IN THE TRADE SECTOR STAGNATED THE AGENCY SAID THE FIGURES ARE CONSISTENT WITH THE RISING UNEMPLOYMENT WITNESSED IN RECENT MONTHS THE NUMBER OF JOB OPENINGS HIT AN EIGHTYEAR RECORD LOW AT THE END OF LAST YEAR WHILE THE NUMBER OF UNEMPLOYED PEOPLE ROSE BY 6000 IN THE FINAL QUARTER OF 1992 COMPARED WITH THE YEAREARLIER PERIOD 9304190036 930419 WHO'S NEWS METROPOLITAN FEDERAL SAVINGS & LOAN ASSOCIATION METROPOLITAN FEDERAL SAVINGS & LOAN ASSOCIATION SEATTLE VIRGIL FASSIO AND DAVID C CORTELYOU WERE NAMED DIRECTORS OF THIS THRIFT EXPANDING BOARD MEMBERSHIP TO NINE MR FASSIO IS PUBLISHER OF THE SEATTLE POSTINTELLIGENCER NEWSPAPER MR CORTELYOU IS PRESIDENT AND CHIEF EXECUTIVE OF UNICO PROPERTIES INC 9304190035 930419 US TRADE DEFICIT WIDENED SLIGHTLY DURING FEBRUARY WASHINGTON THE US TRADE GAP WIDENED A BIT IN FEBRUARY AS EXPORT GROWTH REMAINED SLUGGISH AS A RESULT OF FLAGGING ECONOMIES OVERSEAS THE MERCHANDISE TRADE DEFICIT WAS 72 BILLION IN FEBRUARY THE COMMERCE DEPARTMENT SAID COMPARED WITH 716 BILLION IN JANUARY BOTH EXPORTS AND IMPORTS GREW SLIGHTLY DURING THE MONTH BUT IMPORTS GREW MORE THE 71 MILLION INCREASE IN IMPORTS TO 4438 BILLION REPRESENTS SMALL INCREASES IN CARS CAPITAL GOODS AND INDUSTRIAL SUPPLIES AND MATERIALS BOUGHT BY THE US DURING THE MONTH HIGHLIGHTING THE APPARENT WEAKNESS IN CONSUMER SPENDING HERE IMPORTS OF CONSUMER GOODS WERE VIRTUALLY UNCHANGED THE IMPORT FIGURES SHOW AN ECONOMY THAT IS RECOVERING BUT NOT ALL THAT FAST SAID DOUGLAS HANDLER ECONOMIST WITH DUN & BRADSTREET CORP THE PROBLEM WITH US EXPORTS IS THE WEAK ECONOMIES OVERSEAS THE US IS FINDING IT DIFFICULT TO SELL ITS PRODUCTS ABROAD WHEN MAJOR TRADING PARTNERS SUCH AS JAPAN AND EUROPE ARE IN RECESSION THE SALE OF GOODS OVERSEAS CLIMBED ONLY 33 MILLION TO 3718 BILLION AS USUAL THE US TRADE DEFICIT WITH JAPAN WAS THE LARGEST IT TOTALED 413 BILLION 73 OF THE ENTIRE DEFICIT THE NEWS GAVE PRESIDENT CLINTON WHO MET FOR THE FIRST TIME WITH JAPANESE PRIME MINISTER KIICHI MIYAZAWA TO DISCUSS TRADE ISSUES A TIMELY BACKDROP FOR PRESSING JAPAN TO OPEN ITS MARKETS TO MORE AMERICAN GOODS IN ADDITION TO JAPAN OTHER BIG US DEFICITS WERE WITH CHINA CANADA AND TAIWAN THE US HAD SURPLUSES WITH WESTERN EUROPE MEXICO AND OTHER LATIN AMERICAN COUNTRIES 9304190034 930419 WHO'S NEWS PLATINUM SOFTWARE CORP PLATINUM SOFTWARE CORP IRVINE CALIF CARMELO J SANTORO WAS ELECTED A DIRECTOR OF THIS FINANCIAL AND MANAGEMENT INFORMATION SOFTWARE CONCERN INCREASING THE BOARD TO FIVE DR SANTORO 51 YEARS OLD IS CHAIRMAN OF SILICON SYSTEMS INC 9304190033 930419 INTERNATIONAL GAME TECHNOLOGY RENO NEVADA INTERNATIONAL GAME TECHNOLOGY SAID IT RECEIVED APPROVAL FROM THE SECURITY ELECTRONICS AND COMMUNICATIONS TECHNOLOGY ASSOCIATION IN JAPAN TO BEGIN SELLING PACHISURO MACHINES OR JAPANESESTYLE SLOT MACHINES IN THAT COUNTRY INTERNATIONAL GAME SAID IT WILL BEGIN SHIPMENT OF 3300 OF THE MACHINES TO SANKYO CO BEGINNING IN MAY THE COMPANY SAID THE APPROVAL WON'T HAVE A MATERIAL EFFECT ON EARNINGS AT THIS TIME EARLIER THIS MONTH THE ELECTRONIC GAMES MAKER REPORTED NET INCOME OF 187 MILLION OR 15 CENTS A SHARE ON REVENUE OF 1066 MILLION FOR THE FISCAL SECOND QUARTER ENDED MARCH 31 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY THE COMPANY'S SHARES FELL 1125 TO 2975 9304190032 930419 BUSINESS BRIEF RESORTS INTERNATIONAL AND BONDHOLDERS SET RESTRUCTURING ACCORD ATLANTIC CITY NJ RESORTS INTERNATIONAL INC SAID IT REACHED AN AGREEMENT WITH ITS MAJOR BONDHOLDERS UNDER WHICH THE COMPANY'S DEBT WOULD BE RESTRUCTURED IN EXCHANGE FOR CASH STOCK AND EQUITY IN A RESORT UNDER THE AGREEMENT WHICH MUST BE APPROVED BY A FEDERAL BANKRUPTCY COURT RESORTS WILL EXCHANGE EQUITY IN ITS PARADISE ISLAND CASINORESORT IN THE BAHAMAS NEW DEBT OF 160 MILLION 40 OF THE COMPANY'S COMMON STOCK AND CASH FOR A REDUCTION IN THE 449 MILLION OF DEBT OWED TO ITS MAJOR BONDHOLDERS FIDELITY MANAGEMENT CORP AND TRUST CO OF THE WEST WITH THE RESTRUCTURING IN HAND RESORTS SAID IT PLANS TO PURSUE EXPANSION IN NEW GAMING MARKETS RESORTS WILL CONTINUE TO OWN AND OPERATE MERV GRIFFIN'S RESORTS CASINO HOTEL HERE THE FIRST TO OPEN IN 1978 AFTER CASINO GAMBLING WAS ALLOWED IN ATLANTIC CITY AND REAL ESTATE IN ATLANTIC CITY MR GRIFFIN WILL REMAIN COMPANY CHAIRMAN AND A MAJOR SHAREHOLDER BUT THE AGREEMENT ALSO CALLS FOR RESORTS' BOARD TO EXPAND TO NINE FROM SIX DIRECTORS THE NEW MEMBERS WILL BE APPOINTED BY THE BONDHOLDERS AS A RESULT OF THE AGREEMENT STANDARD & POOR'S CORP LOWERED ITS RATINGS ON RESORTS' 449 MILLION SENIOR SECURED NOTES THE RATING AGENCY ALSO SAID THAT UPON FILING THE BANKRUPTCY PLAN THE RATINGS WILL BE LOWERED FURTHER DUE TO THE RELIANCE ON A SINGLE PROPERTY THAT CONTINUES TO UNDERPERFORM IN THE ATLANTIC CITY MARKET RESORTS AND THE BONDHOLDERS ARE EXPECTED TO FILE A PREPACKAGED BANKRUPTCY THE COMPANY SAID THE RESTRUCTURING WILL OCCUR AT THE PARENT COMPANY LEVEL THOUGH ITS OPERATING SUBSIDIARIES IN ATLANTIC CITY AND THE BAHAMAS WILL NOT BE INVOLVED IN THE PROCEEDINGS DAVID P HANLON RESORTS' PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY AND ITS BONDHOLDERS HAD EXPECTED THAT THE BAHAMAS HOLDINGS WOULD HAVE BEEN SOLD DURING THE PAST SEVERAL YEARS HOWEVER THE WORLDWIDE RECESSION HAS MADE AN OUTRIGHT SALE IMPOSSIBLE AT LEVELS ADEQUATE TO RETIRE A SUFFICIENT AMOUNT OF THE COMPANY'S SERIES NOTES SO AS TO PERMIT THE COMPANY'S REMAINING OPERATIONS TO SERVICE THE DEBT OUTSTANDING AFTER SUCH A SALE HE SAID THE RESTRUCTURING SHOULD ACHIEVE THE SAME RESULT 9304190031 930419 PEPPERAND SALT COPYRIGHTING EDIBLES YOU BAKE THERE'S A THOUGHT THAT REALLY TAKES THE CAKE MAYBE FOOD IS ART BUT WHO'S TO JUDGE AS FOR ME MY COMMENT IS OH FUDGE A FRIEND IS SOMEONE WHO STILL LIKES YOU IN SPITE OF THE WAY YOU VOTED 9304190030 930419 BUSINESS BRIEF RENOWN INC JAPANESE APPAREL MAKER HAD LOSS IN SIXMONTH PERIOD RENOWN INC A MAJOR JAPANESE APPAREL MAKER REPORTED A GROUP PRETAX LOSS OF 697 BILLION YEN 616 MILLION FOR THE SIX MONTHS ENDED JAN 31 YEARTOYEAR COMPARISONS WERE UNAVAILABLE BECAUSE THE COMPANY IS CHANGING THE START OF ITS FISCAL YEAR TO FEB 1 FROM JAN 1 THE GROUP SAID IT HAD A SIXMONTH NET LOSS OF 982 MILLION YEN ON SALES OF 12147 BILLION YEN THE RESULTS LARGELY REFLECT THE PARENT COMPANY'S POOR PERFORMANCE WHICH WAS REPORTED EARLIER AS A 641BILLIONYEN PRETAX LOSS DESPITE COSTCUTTING A SHARP DECLINE IN SALES OF EXPENSIVE CLOTHING AMID JAPAN'S WEAK ECONOMY RESULTED IN A GROUP OPERATING LOSS OF 619 BILLION YEN RENOWN SAID RENOWN PREDICTED IT WON'T SHOW A PROFIT FOR THE YEAR ENDING JAN 31 1994 ALTHOUGH IT BELIEVES ITS PRETAX LOSS AND NET LOSS WILL NARROW FROM THE PRIOR SIX MONTHS 9304190029 930419 JUDGE BACKS CONTINENTAL AIRLINES PLAN TO REGROUP EMERGE FROM CHAPTER 11 BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL BANKRUPTCY JUDGE CONFIRMED CONTINENTAL AIRLINES' REORGANIZATION PLAN CLEARING THE NEXTTOLAST HURDLE TO THE CARRIER'S EMERGENCE FROM CHAPTER 11 AFTER 28 MONTHS THE ACTION MARKS A TURNING POINT FOR CONTINENTAL A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC HOUSTON WHICH HAS STRIPPED AWAY MUCH OF ITS DEBT WHILE IN BANKRUPTCY COURT AND WILL HAVE NEW OWNERS INCLUDING AIR CANADA A FORT WORTH TEXAS INVESTOR GROUP AND ITS OWN UNSECURED CREDITORS IT REENTERS AN AIRLINE INDUSTRY WRACKED BY THREE YEARS OF LOSSES BUT WHICH ANALYSTS SAY IS PERHAPS ENTERING A RECOVERY US BANKRUPTCY JUDGE HELEN S BALICK ON FRIDAY ENDORSED CONTINENTAL'S RESTRUCTURING PLAN UNDER WHICH THE CARRIER WILL SELL A 55 STAKE TO AIR CANADA AND AIR PARTNERS LP FOR 450 MILLION ALL THAT REMAINS FOR CONTINENTAL'S EMERGENCE TO BECOME OFFICIAL IS FOR THE AIRLINE TO CLOSE THAT TRANSACTION WHICH SHOULD OCCUR BEFORE THE END OF APRIL A CONTINENTAL SPOKESMAN SAID AIR CANADA AS WELL AS THE AIR PARTNERS LED BY DAVID BONDERMAN AND JAMES COULTER EACH WILL RECEIVE 275 OF THE AIRLINE IN RETURN FOR THEIR INVESTMENT CONTINENTAL WOULD THEN BECOME THE FIRST CARRIER TO HAVE SURVIVED TWO FORAYS IN BANKRUPTCY COURT THE AIRLINE OPERATED UNDER BANKRUPTCY COURT PROTECTION FROM 1983 TO 1986 AFTER WHICH IT REPAID ITS CREDITORS ALL THEY WERE OWED THIS TIME HOWEVER CREDITORS ARE GETTING ONLY PENNIES ON THE DOLLAR AND IN ADDITION UNSECURED CREDITORS WILL TAKE A 356 STAKE IN THE AIRLINE THE REMAINING 94 IS BEING HELD TO SATISFY OTHER CLAIMS CONTINENTAL HAS SAID CONTINENTAL IS EXPECTED TO MARK ITS EMERGENCE WITH SOME BOLD MOVES INCLUDING AN ANNOUNCEMENT THAT IT WILL MAKE AN AIRCRAFT PURCHASE WORTH UP TO 4 BILLION THE AIRLINE IS IN TALKS WITH BOTH BOEING CO AND AIRBUS INDUSTRIE BUT PEOPLE FAMILIAR WITH THE TALKS SAY CONTINENTAL IS LEANING MORE TOWARDS A BOEING PURCHASE A CONTINENTAL SPOKESMAN WOULDN'T COMMENT ONCE OUT OF CHAPTER 11 CONTINENTAL WILL STILL HAVE SOME INHERENT WEAKNESSES AT 18 BILLION ITS DEBT BURDEN WILL BE FAR LOWER THAN THE 396 BILLION IT ENTERED BANKRUPTCY WITH BUT WITH STOCKHOLDER EQUITY OF ABOUT 610 MILLION ITS DEBT TO EQUITY RATIO WILL STILL BE NEARLY THREETOONE CONTINENTAL ALSO COULD USE THE KIND OF FINANCIAL AND OPERATIONAL STRENGTH IT WOULD GAIN BY ALLYING WITH A EUROPEAN OR ASIAN AIRLINE CONTINENTAL HAS CONTINUED TALKING WITH OTHER CARRIERS AS HAS AIR CANADA AS PART OF A PUSH TOWARDS A GLOBAL NETWORK ANY PARTY OPPOSED TO CONTINENTAL'S REORGANIZATION HAS 10 DAYS TO FILE AN APPEAL BUT IT'S UNLIKELY SUCH AN APPEAL WILL PREVAIL SINCE JUDGE BALICK HAS APPROVED THE PLAN IN ITS CURRENT FORM NATIONSBANK CORP HAS OPPOSED THE PLAN AS TRUSTEE FOR INVESTORS WHO LENT CONTINENTAL MONEY AND ACCEPTED ENGINES AND JETS AS COLLATERAL WHICH HAVE SINCE LOST MUCH OF THEIR VALUE IT'S UNCLEAR WHETHER THE BANK WILL APPEAL 9304190027 930419 TECHNOLOGY & MEDICINE US DEVELOPS COMPUTER CHIP FOR ENCRYPTION BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE SAID THAT GOVERNMENT ENGINEERS HAVE DEVELOPED A COMPUTER CHIP THAT WILL LET COMPANIES KEEP COMMUNICATIONS PRIVATE BUT ALSO WOULD ALLOW LAWENFORCEMENT AGENCIES TO HAVE ACCESS TO THE DATA AND CONVERSATIONS THE CLINTON ADMINISTRATION WILL ATTEMPT TO USE THE NEW CHIP CALLED THE CLIPPER CHIP AS THE STANDARD FOR THE BUSINESS COMMUNITY AS WELL AS FOR THE GOVERNMENT THE CHIP WOULD BE USED IN VOICE OR DATA COMMUNICATIONS AS A WAY OF CODING SOUND OR INFORMATION FOR PRIVACY REASONS A PROCESS CALLED ENCRYPTION CURRENTLY PRIVATE INDUSTRY SELLS SUCH PRODUCTS MANY OF WHICH THE GOVERNMENT WORRIES IT CAN'T BREAK THROUGH THE ANNOUNCEMENT MARKS THE LATEST STEP IN THE CONTINUING STRUGGLE BETWEEN PRIVATE INDUSTRY WHICH WANTS TO PROTECT ITS COMMUNICATIONS FROM COMPETITORS AND THE GOVERNMENT WHICH WANTS TO BE ABLE TO TRACK ILLEGAL DEALINGS WE NEED THE CLIPPER CHIP' AND OTHER APPROACHES THAN CAN BOTH PROVIDE LAWABIDING CITIZENS WITH ACCESS TO THE ENCRYPTION THEY NEED AND PREVENT CRIMINALS FROM USING IT TO HIDE THEIR ILLEGAL ACTIVITIES THE WHITE HOUSE SAID IN A STATEMENT THE GOVERNMENT HOPES THE CLIPPER CHIP WILL SOLVE THAT ENCRYPTION DEVICES HOLDING THE NEW CHIP WOULD BE ATTACHED TO TELEPHONES ALLOWING FOR PRIVACY BETWEEN THE PARTIES INVOLVED IN A PHONE CALL FACSIMILE COMMUNICATION OR DATA LINKS THAT ENCRYPTION TECHNOLOGY WOULD BE MORE POWERFUL THAN MOST IN USE TODAY THE WHITE HOUSE SAID AT THE SAME TIME THE FEDERAL GOVERNMENT WOULD HAVE THE UNSCRAMBLING CODES TO THE DEVICES THE UNSCRAMBLING CODES WOULD BE AVAILABLE ONLY TO GOVERNMENT OFFICIALS WITH LEGAL AUTHORITY TO CONDUCT A WIRETAP THE ADMINISTRATION SAID THE GOVERNMENT WILL NOW BEGIN THE PROCESS OF TRYING TO SELL THE PLAN TO AMERICAN BUSINESS THE JUSTICE DEPARTMENT WILL SOON BUY SEVERAL THOUSAND OF THE NEW ENCRYPTION DEVICES THE WHITE HOUSE SAID TO DEMONSTRATE THE EFFECTIVENESS OF THIS NEW TECHNOLOGY BUT IT IS LIKELY THAT PRIVATE COMPANIES WILL CONTINUE TO SELL THEIR VERSIONS OF ENCRYPTION TECHNOLOGY RAISING QUESTIONS OF WHETHER THE ADMINISTRATION'S PLAN WILL BE SUCCESSFUL AMERICAN TELEPHONE & TELEGRAPH CO PLANS TO MARKET TELEPHONE EQUIPMENT THAT INCORPORATES THE NEW CHIP 9304190026 930419 ENTERGY CONTINUES DIVERSIFICATION MOVE BUYS MEMPHIS FIRM NEW ORLEANS ENTERGY CORP CONTINUING TO DIVERSIFY SAID ITS NONUTILITY UNIT ACQUIRED A MEMPHIS ENERGY EFFICIENCY COMPANY AND ALSO BOUGHT A 99 STAKE IN THAT COMPANY'S FORMER PARENT THE PURCHASE PRICE WAS 11 MILLION THE UTILITY SAID ITS ENTERGY ENTERPRISES INC BOUGHT AMERICAN SYSTEMS & SERVICE INC AND TOOK A SMALL STAKE IN SYSTEMS & SERVICE INTERNATIONAL ALSO OF MEMPHIS AMERICAN SYSTEMS WILL BE RENAMED ENTERGY SYSTEMS & SERVICE INC AND WILL CONSULT ON NEW TECHNOLOGIES IN DESIGNING INSTALLING AND MAINTAINING ENERGY EFFICIENT SYSTEMS PRINCIPALLY IN THE COMMERCIAL AND INDUSTRIAL SECTOR DIVERSIFICATION OF ELECTRIC UTILITY HOLDING COMPANIES PRESENTS A PROBLEM TO REGULATORS AND RATEPAYERS KNOWN AS CROSS SUBSIDY THAT REFERS TO THE POSSIBLE TRANSFER OF MONEY EXPERTISE AND PERSONNEL PAID FOR BY CAPTIVE RATEPAYERS TO OTHER INVESTMENTS SUCH AS AMERICAN SYSTEMS & SERVICE LAST WEEK A LAWYER FOR ONE REGULATOR SAID ENTERGY'S PURCHASE WILL BE CAREFULLY SCRUTINIZED THE MICROSCOPES ARE OUT SAID CLINT VINCE COUNSEL FOR THE CITY OF NEW ORLEANS IN AN INTERVIEW NO CROSS SUBSIDIES WILL BE ALLOWED REGULATORS PLAN TO ENSURE THAT ENTERGY'S CUSTOMERS HAVE ACCESS TO OTHER SUPPLIERS OF ENERGY EFFICIENT EQUIPMENT AND TECHNOLOGY NOT JUST FROM ENTERGY'S NEW COMPANY HE SAID ENTERGY'S DIVERSIFICATION EFFORTS HAVE MET SOME RESISTANCE FROM STATE REGULATORS AND EVEN FROM THE SECURITIES AND EXCHANGE COMMISSION BUT LAST FALL THE COMPANY AND STATE REGULATORS HAMMERED OUT AN AGREEMENT THAT PURPORTEDLY SAFEGUARDED RATEPAYERS INTERESTS UNDER THE AGREEMENT ENTERGY WON'T SPEND CAPTIVE RATEPAYERS' MONEY ON ITS DIVERSIFICATION EFFORTS OUTSIDE OF MAINSTREAM ELECTRIC GENERATION AND DISTRIBUTION AND REGULATORS WOULD RECEIVE GREATER THAN USUAL ACCESS TO FINANCIAL RECORDS TO MONITOR ENTERGY'S NEW INVESTMENTS SINCE THEN REGULATORS WITHDREW THEIR OBJECTIONS TO ENTERGY'S VARIOUS DIVERSFICATION PLANS 9304190025 930419 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 BAROID CORP 150 MILLION OF SENIOR NOTES DUE APRIL 15 2003 PRICED AS 8S AT 99327 TO YIELD 810 THE SIZE OF THE OFFERING WAS RAISED FROM A PLANNED 125 MILLION THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 22 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC COASTAL CORP 200 MILLION OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED THROUGH DEALERS LED BY LEHMAN BROTHERS THE EIGHT MILLION SHARES OF 25ASHARE PREFERRED WERE PRICED WITH A DIVIDEND YIELD OF 85 THE SHARES ARE NONCALLABLE FOR FIVE YEARS THE OFFERING WHICH WAS RAISED IN SIZE FROM A PLANNED SIX MILLION SHARES IS RATED BA2 BY MOODY'S AND DOUBLEB BY S&P TRIDENT NGL INC 105 MILLION OF SUBORDINATED NOTES DUE APRIL 15 2003 PRICED AT PAR TO YIELD 1025 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED THROUGH DEALERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE ISSUE IS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES GOLD 1524 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1492 YEARS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS THE OFFERING SIES 1523 IS BACKED BY FREDDIE MAC GOLD 30YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 725 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2992 YEARS FEDERAL HOME LOAN MORTGAGE CORP 173 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY SMITH BARNEY HARRIS UPHAM & CO THE OFFERING SERIES GOLD 1525 IS BACKED BY 30YEAR 7 RELOCATION LOANS THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 772 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 750 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 199371 IS BACKED BY FANNIE MAE 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 199372 IS BACKED BY FANNIE MAE 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 410 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199370 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS PACIFIC PHYSICIAN SERVICES INC OFFERING OF 1752857 COMMON SHARES PRICED AT 1525 A SHARE OFFERED IN THE US BY AN UNDERWRITING GROUP MANAGED BY FURMAN SELZ INC AND LEHMAN BROTHERS 350000 SHARES WILL BE OFFERED OUTSIDE THE US BY FURMAN SELZ AND LEHMAN BROTHERS INTERNATIONAL LOMA NEGRA ARGENTINA 100 MILLION OF 9 7/8 EUROBONDS DUE MAY 5 1998 AT ISSUE AND FIXED REOFFER PRICE 99903 VIA CHASE INVESTMENT BANK LTD YIELD 99 SEMIANNUAL SPREAD 485 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE PUT OPTION EXERCISABLE ON MAY 4 1996 AT 99659 TO YIELD 1001 FEES 1 1/8 POINTS TOKYO SANGYO CO JAPAN 45 MILLION SWISS FRANCS OF PRIVATELY PLACED 1/2 NOTES DUE MAY 13 1997 WITH EQUITYPURCHASE WARRANTS ATTACHED AT ISSUE PRICE PAR VIA NIKKO BANK SWITZERLAND LTD EACH 50000 FRANC NOTE CARRIES WARRANTS EXERCISABLE FROM MAY 26 1993 TO APRIL 28 1997 TO BUY TOKYO SANGYO SHARES FINAL TERMS FIXED APRIL 21 FEES 1 5/8 9304190024 930419 NORCEN TO PROCEED WITH PLANS TO MERGE WITH NORTH CANADIAN NORCEN ENERGY RESOURCES LTD SAID IT PLANS TO GO AHEAD WITH PLANS TO EFFECTIVELY MERGE ITS OPERATIONS WITH THOSE OF NORTH CANADIAN OILS LTD NORCEN AND NORTH CANADIAN AGREED TO INTEGRATE THE OPERATIONS AND STAFFS OF THEIR TWO COMPANIES NORCEN SAID DESPITE THE REJECTION EARLIER THIS MONTH BY NORTH CANADIAN DIRECTORS OF THE TERMS OF A NORCEN OFFER TO BUY OUT MINORITY SHAREHOLDERS OF NORTH CANADIAN NORCEN SAID IT WOULD PROVIDE NORTH CANADIAN WITH A FULL RANGE OF MANAGEMENT SERVICES IN A MANNER WHICH WOULD MAXIMIZE SYNERGIES BUT NORTH CANADIAN SAID THAT AT LEAST THREE EXECUTIVES WILL LOSE THEIR POSITIONS INCLUDING BARRY PADLEY CHIEF FINANCIAL OFFICER GERRY STEVENSON SENIOR VICEPRESIDENT OF ENGINEERING AND JOHN WILLIAMS SENIOR VICEPRESIDENT OF EXPLORATION BOTH NORTH CANADIAN AND NORCEN ARE CALGARY OIL AND GAS CONCERNS BOTH ARE MEMBERS OF THE EMPIRE CONTROLLED BY PETER AND EDWARD BRONFMAN THE ALLIANCE BETWEEN THE COMPANIES IS RELATED TO ONGOING RESTRUCTURING EFFORTS BY MEMBERS OF THE BRONFMAN GROUP UNDER THE TERMS OF ITS INITIAL PROPOSAL IN DECEMBER NORCEN AGREED TO ACQUIRE A 505 STAKE IN NORTH CANADIAN FROM ITS BRONFMAN GROUP AFFILIATE RESOURCES GIANT NORANDA INC EXCHANGING 067 OF ONE NORCEN SHARE FOR EVERY NORANDA SHARE ACQUIRED NORCEN WAS THEN TO HAVE EXTENDED THE OFFER TO THE HOLDERS OF ALL OTHER NORTH CANADIAN SHARES THE FIRST HALF OF THE TRANSACTION WENT OFF WITHOUT A HITCH BUT DIRECTORS OF NORTH CANADIAN REJECTED THE FOLLOWUP OFFER ON THE ADVICE OF INVESTMENT DEALER BURNS FRY LTD TO DATE NORCEN HAS DECIDED AGAINST SWEETENING THE BID THE POSSIBILITY OF REALIZING COST SAVINGS WAS A KEY FACTOR IN NORCEN'S DECISION TO MAKE THE NORTH CANADIAN INVESTMENT AS WAS NORTH CANADIAN'S NATURAL GAS PRODUCTION PROFILE PAUL PALMER NORCEN'S CHIEF FINANCIAL OFFICER SAID PREVIOUSLY THAT THERE LIKELY ARE SIGNIFICANT DUPLICATIONS OF EFFORT BETWEEN THE TWO COMPANIES NEITHER MR PALMER NOR NORTH CANADIAN OFFICIALS WERE AVAILABLE FOR COMMENT 9304190023 930419 WHAT'S NEWS WORLDWIDE MUSLIM FORCES CAVED IN TO A SERB SIEGE AND SIGNED A TRUCE IN SREBRENICA MANY OF THE BOSNIAN TOWN'S FIGHTERS RESENTED THE TRUCE WHICH PERMITS AID AND EVACUATIONS BUT AMOUNTS TO A VIRTUAL SURRENDER THE CEASEFIRE IF IT LASTS WOULD BE THE BOSNIAN GOVERNMENT'S BIGGEST CAPITULATION IN A YEARLONG WAR CANADIAN UN PEACEKEEPING TROOPS ENTERED SREBRENICA TO SECURE ITS DEMILITARIZATION AND FRENCH AND BRITISH HELICOPTERS BEGAN FERRYING OUT THE SICK AND WOUNDED BOSNIA'S SERB LEADER VOWED TO HONOR THE TRUCE BUT THREATENED TO BOYCOTT FURTHER UNSPONSORED PEACE TALKS THE US WAS DEBATING WHETHER TO USE LIMITED MILITARY FORCE THE SECURITY COUNCIL VOTED SATURDAY TO TIGHTEN SANCTIONS NEXT WEEK AGAINST THE YUGOSLAV GOVERNMENT ON FRIDAY THE COUNCIL DECLARED SREBRENICA A SAFE HAVEN FOR MUSLIM CIVILIANS TWO OFFICERS WERE CONVICTED IN THE KING BEATING TRIAL IN LOS ANGELES THE VERDICT IN WHICH TWO OF THE FOUR WHITE DEFENDANTS WERE FOUND GUILTY OF VIOLATING A BLACK MOTORIST'S CIVIL RIGHTS WAS GREETED WITH NATIONWIDE RELIEF SATURDAY THE FEDERAL CASE INVOLVING BROAD ISSUES OF RACIAL JUSTICE WITH RESPECT TO THE 1991 VIDEOTAPED BEATING WAS LARGELY A REPEAT OF A STATE TRIAL LAST YEAR IN THAT CASE A JURY ACQUITTED THREE OF THE POLICEMEN AND FAILED TO REACH A VERDICT ON THE FOURTH SETTING OFF THREE DAYS OF RIOTING THE CONVICTED OFFICERS WHO ARE EXPECTED TO APPEAL FACE AS LONG AS 10 YEARS IN PRISON AND UP TO 250000 IN FINES ALTHOUGH FEDERAL GUIDELINES WOULD LIKELY DICTATE LESSER PENALTIES SEVENTEEN SOUTH AFRICANS WERE KILLED AND 12 WOUNDED WHEN BLACK GUNMEN IN A STOLEN CAR OPENED FIRE ON PEOPLE IN A BLACK TOWNSHIP NEAR JOHANNESBURG POLICE SAID THE SHOOTINGS IN SEBOKENG CAME THE SAME DAY THOUSANDS OF MOURNERS FILED PAST THE CASKET OF SLAIN BLACK LEADER CHRIS HANI A US WARPLANE DESTROYED AN IRAQI RADAR TRACKING SITE SOUTH OF THE NOFLY ZONE OVER NORTHERN IRAQ AFTER THE AIRCRAFT WAS THREATENED A DEFENSE DEPARTMENT SPOKESMAN SAID THE PLANE WAS ONE OF TWO ON A ROUTINE MONITORING PATROL IN THE ZONE PAKISTAN'S PRESIDENT ISHAQ KHAN HIT BACK AT HIS OPPONENTS BY DISSOLVING PARLIAMENT AND FIRING PRIME MINISTER SHARIF WHO HAD WAGED A THREEMONTH EFFORT TO WEAKEN PRESIDENTIAL POWERS A MILITARYBACKED CARETAKER REGIME WAS NAMED ISRAEL REFUSED TO OFFER NEW CONCESSIONS TO DRAW PALESTINIANS BACK TO THE MIDEAST TALKS SAYING IT HAD US BACKING FOR THE MOVE SYRIA'S FOREIGN MINISTER ANNOUNCED THAT NO ARAB DELEGATION WOULD RESUME TALKS UNLESS PALESTINIANS TOOK PART ARAB DIPLOMATS IN TUNIS SAID THE WASHINGTON TALKS HAD BEEN DELAYED UNTIL APRIL 27 PALESTINIAN EXTREMISTS CLAIMED RESPONSIBILITY FOR THE KILLING OF AN ISRAELI WORKING FOR AN AID AGENCY FOR ARABS THE VICTIM REPORTEDLY WAS SLAIN IN THE GAZA STRIP BY TWO ASSAILANTS WIELDING AXES AND KNIVES EGYPT'S INTERIOR MINISTER WAS DISMISSED BY PRESIDENT MUBARAK ABDELHALIM MOUSSA WHOSE CRACKDOWN ON MUSLIM EXTREMISTS FAILED TO END THEIR VIOLENT CAMPAIGN TO OVERTHROW THE GOVERNMENT WAS SUCCEEDED BY THE GOVERNOR OF ASSIUT A SOUTHERN PROVINCE WHERE MUSLIM EXTREMISTS HAVE CLASHED WITH SECURITY FORCES ITALIAN PREMIER AMATO CONFIRMED HE INTENDS TO RESIGN HIS POST BUT SAID HE WAS READY TO LEAD A NEW INTERIM GOVERNMENT IF NECESSARY MEANWHILE ITALIANS WENT TO THE POLLS FOR A TWODAY REFERENDUM ON MAKING ELECTIONS MORE DIRECT TURKISH PRESIDENT TURGUT OZAL DIED SATURDAY IN ANKARA OF A HEART ATTACK OZAL 66 WHO HAD SOUGHT TO MODERNIZE TURKEY BACKED THE USLED ALLIES DURING THE GULF WAR PARLIAMENT SPEAKER HUSAMETTIN CINDORUK WILL BE ACTING PRESIDENT UNTIL LAWMAKERS ELECT OZAL'S SUCCESSOR VIETNAM DELIVERED SIX DOCUMENTS ABOUT MISSING AMERICAN PRISONERS TO US NEGOTIATORS IN HANOI AND WHITE HOUSE ENVOY GEN VESSEY REPORTED PROGRESS IN TALKS ON THE MIA ISSUE VIETNAMESE OFFICIALS ALSO PLEDGED TO COOPERATE IN INVESTIGATING A 1972 DOCUMENT THAT PURPORTEDLY SHOWS NORTH VIETNAM LIED ABOUT THE NUMBER OF PRISONERS IT HELD OVER 200 PEOPLE HAVE BEEN KILLED IN FIGHTING IN THE SOUTHERN AFGHAN PROVINCE OF KANDAHAR THE INTERNATIONAL COMMITTEE OF THE RED CROSS SAID LOYALIST FORCES HAVE CLASHED WITH REBELS FOR THREE DAYS 9304190022 930419 INTERNATIONAL LI KASHING MAKES OFFER TO BUY BACK WARRANTS ON FIRMS BY ERIK GUYOT STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG BILLIONAIRE LI KASHING OFFERED ON SUNDAY TO BUY BACK AT ABOVEMARKET PRICES ALL THE OUTSTANDING WARRANTS THAT HE PREVIOUSLY ISSUED ON TWO OF HIS BLUECHIP COMPANIES CHEUNG KONG HOLDINGS LTD AND ITS SUBSIDIARY HUTCHISON WHAMPOA LTD MR LI IS OFFERING TO REPURCHASE THE WARRANTS AT A PREMIUM TO PREVENT CRITICISM THAT HE IS TAKING ANY ADVANTAGE OF FRIDAY'S SHARP DROP IN THE PRICE OF THE WARRANTS SHARE PRICES PLUNGED FOR THE BLUE CHIPS AND THE WARRANTS AFTER THE LOCAL CHINESELANGUAGE PRESS REPORTED THAT MR LI SAID HUTCHISON MIGHT NEED TO RAISE CASH SOMETIME IN THE FUTURE MR LI WHO PERSONALLY ISSUED THE WARRANTS ON CHEUNG KONG AND THROUGH CHEUNG KONG ON HUTCHISON IN MAY 1991 IS EXPECTED TO BUY BACK THE WARRANTS IN THE LAST FEW DAYS BEFORE THEY EXPIRE THIS MONTH MR LI PLANS TO PERSONALLY BUY BACK THE CHEUNG KONG WARRANTS WHILE PARENT CHEUNG KONG PLANS TO BUY BACK THE WARRANTS ON ITS SUBSIDIARY HUTCHISON A WARRANT GIVES THE HOLDER THE RIGHT BUT NOT THE OBLIGATION TO PURCHASE SHARES IN THE UNDERLYING STOCK AT FIXED PRICES BEFORE ITS EXPIRATION DATE ON FRIDAY PRICES FOR THE WARRANT ON HUTCHISON FELL TO HK168 22 US CENTS FROM HK2175 WHILE PRICES FOR THE WARRANT ON CHEUNG KONG SLIPPED TO HK290 FROM HK360 MR LI IS OFFERING TO BUY BACK ALL OF THE WARRANTS ON BOTH COMPANIES AT THURSDAY'S CLOSING PRICE THE PRICE BEFORE HIS REMARKS WERE REPORTED THE LAST TRADING DAY FOR THE CHEUNG KONG WARRANT IS TUESDAY THE HUTCHISON WARRANT'S EXPIRATION IS FRIDAY IN 1991 MR LI ISSUED THE WARRANTS ON CHEUNG KONG AT HK530 EACH AND THE WARRANTS ON HUTCHISON AT HK380 EACH MR LI DOESN'T WANT TO BE SEEN AS TAKING ADVANTAGE OF THE SHARP DROP IN PRICES SAID PHILIP TOSE CHAIRMAN OF PEREGRINE BROKERAGE LTD WHICH IS CARRYING OUT THE BUYBACK OFFER FOR MR LI MR TOSE SAID THAT MR LI'S REMARKS ON THURSDAY WERE OFF THE CUFF AND HAD BEEN MISCONSTRUED HUTCHISON WHAMPOA SAID FRIDAY IT WOULDN'T CONSIDER ANY PLANS FOR ISSUING OR PLACING SHARES BEFORE THE END OF THE MONTH MR TOSE SAID 77 MILLION HUTCHISON WARRANTS AND 91 MILLION CHEUNG KONG WARRANTS ARE OUTSTANDING IF ALL WARRANT HOLDERS TOOK UP THE BUYBACK OFFER MR LI WOULD PAY A TOTAL OF SLIGHTLY MORE THAN HK495 MILLION 9304190021 930419 CANADIAN STEEL OUTPUT RISES OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 290208 METRIC TONS IN THE WEEK ENDED SATURDAY A 09 INCREASE FROM 287729 TONS THE PREVIOUS WEEK AND A 35 RISE FROM 280273 A YEAR AGO STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 3886192 TONS A 23 INCREASE FROM 3799278 TONS A YEAR EARLIER 9304190020 930419 EASTERN GERMANY FACTORY ORDERS BONN ORDERS FOR THE MANUFACTURING INDUSTRY IN EASTERN GERMANY FELL 229 IN JANUARY FROM DECEMBER LED BY A 457 DROP IN FOREIGN BOOKINGS THE BONN ECONOMICS MINISTRY REPORTED EASTERN GERMAN ORDER INFLOWS WERE 255 LOWER THAN IN JANUARY 1991 ORDER DATA FOR EASTERN GERMANY AREN'T ADJUSTED FOR SEASONAL OR OTHER VARIABLES THE ORDER INDEX FOR DECEMBER WAS LOWERED BY 13 TO 894 FROM 906 THE REVISION REDUCED DECEMBER'S GAIN FROM NOVEMBER TO 283 FROM THE 296 PREVIOUSLY RECORDED 9304190019 930419 PRODIGY TO LAUNCH NEW PRICING PLAN WITH HOURLY RATES BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL WHITE PLAINS NY PRODIGY SERVICES CO THE UNPROFITABLE ONLINE COMPUTER INFORMATION NETWORK SAID IT WILL INTRODUCE A NEW PRICING PLAN FOR USERS THAT INCLUDES HOURLY RATES A MOVE THAT HAS ALREADY ANGERED SOME SUBSCRIBERS PRODIGY SAID IT WILL INTRODUCE TWO NEW FLEXIBLE PRICING PLANS ENHANCE ITS CONTENT AND OFFER HIGHSPEED SERVICE IN MOST FEATURES AT NO EXTRA CHARGE THE NEW PRICING PLAN REPLACES A FLAT MONTHLY RATE COMBINING HOURLY RATES WITH FLAT FEES PRODIGY IS A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO STARTING IN JULY PRODIGY WILL CHARGE FOR SOME CONNECT TIME TO NEWLY DESIGNATED PLUS FEATURES SUCH AS MOST BULLETIN BOARDS AIRLINE SCHEDULES AND CERTAIN FINANCIAL INFORMATION PRODIGY SAID THE NEW CHARGES ARE EXPECTED TO AFFECT FEWER THAN ONE IN FIVE OF ITS HOUSEHOLDS PRODIGY CLAIMS MORE THAN TWO MILLION MEMBERS ALL OTHER FEATURES WILL STILL BE AVAILABLE AT A FLAT RATE PUBLISHED REPORTS SAID SOME PRODIGY USERS PLANNED TO BOYCOTT THE SERVICE IN PROTEST OVER THE PLAN TO CHARGE HOURLY RATES FOR SOME OF ITS MOST POPULAR SERVICES PRODIGY CURRENTLY CHARGES SUBSCRIBERS 1495 A MONTH TO BROWSE THROUGH ALL ITS SERVICES ON A PERSONAL COMPUTER IN THE PAST WEEK PRODIGY MEMBERS REGISTERED THEIR ANGER AT THE PROPOSAL BY SENDING NOTES THROUGH THE ELECTRONIC BULLETIN BOARD IT'S UNCLEAR HOWEVER WHETHER A BOYCOTT TOOK PLACE PRODIGY EXECUTIVES DIDN'T RETURN CALLS SEEKING COMMENT PRODIGY WILL CONTINUE TO OFFER ITS FLAT MONTHLY RATE BUT UNDER THE NEW PLAN TWO HOURS OF TIMED FEATURES ARE INCLUDED IN THE MONTHLY FEE AFTER THE FIRST TWO HOURS OF PLUS FEATURES CONNECTTIME RATES WILL DECREASE WITH USAGE PRODIGY SAID CHARGES WILL RANGE FROM 480 TO 360 AN HOUR A SECOND PRICING OPTION SET AT 795 A MONTH WILL PROVIDE TWO HOURS' USE OF BASIC AND PLUS FEATURES COMBINED AFTER WHICH TIMED CHARGES WILL BEGIN AT THE LOWER PRICE NO PRIVATE MESSAGES WILL BE INCLUDED BUT MAY BE SENT FOR 25 CENTS EACH PRODIGY'S PRESIDENT ROSS GLATZER SAID THE NEW FEE STRUCTURE WILL HELP THE COMPANY BALANCE THE COSTS ASSOCIATED WITH OPERATING OUR NETWORK SO WE CAN MAINTAIN AND IMPROVE THE PRODIGY SERVICE HE ADDED THAT WHILE MEMBERSHIP GREW 40 IN THE LAST YEAR USAGE OF FEATURES THAT REQUIRE PRODIGY TO PAY FOR LONGDISTANCE CONNECTION TO ITS CENTRAL COMPUTERS GREW MUCH FASTER 9304190018 930419 MARKETING & MEDIA ADVERTISING NBC CABLE CHANNEL TRIES TO PRESS ITS WAY INTO TV GUIDE'S LISTINGS BY KEVIN GOLDMAN IN COMMERCIALS FOR TV GUIDE EDITOR IN CHIEF ANTHEA DISNEY PROMISES VIEWERS IF IT'S ON TV IT'S IN TV GUIDE NOT EXACTLY CNBC FOR ONE WOULD INSIST OTHERWISE THE BUSINESS CABLE CHANNEL'S HODGEPODGE OF BUSINESS PROGRAMS BY DAY AND MYRIAD TALK SHOWS MINING POLITICAL AND SEXUAL ISSUES BY NIGHT ARE CONSPICUOUSLY OMITTED FROM THE ALLIMPORTANT GRID LISTINGS IN TV GUIDE THE MAGAZINE ARGUES THAT VIEWER DEMAND DOESN'T WARRANT CNBC'S INCLUSION THAT HURTS CNBC'S EFFORTS TO GET WATCHED BY THE 48 MILLION HOMES IT REACHES CONSIDERING THAT THE NEWS CORP PUBLICATION IS THE LARGESTCIRCULATION WEEKLY MAGAZINE IN AMERICA AT MORE THAN 15 MILLION COPIES TO PRESSURE THE PUBLISHER FOR A LISTING CNBC HAS PULLED ITS ADS FROM TV GUIDE AND THE DUSTUP ISN'T STOPPING THERE NOW THE CABLE CHANNEL'S PARENT NBC IS THREATENING TO WITHDRAW ITS ADVERTISING AS WELL FROM THE 40YEAROLD WEEKLY UNLIKE CNBC'S TUNEOUT NBC'S WALKAWAY WOULD BE FELT BY TV GUIDE GENERAL ELECTRIC'S NBC LIKE OTHER BROADCAST NETWORKS SPENDS ABOUT 15 MILLION ANNUALLY TO PUSH PRIMETIME SERIES AND SPECIALS AS WELL AS DAYTIME SOAPS IN THE PAGES OF THE DIGESTSIZED MAGAZINE ON THE SURFACE NBC'S THREAT IS AUDACIOUS AND UNLIKELY THE ONCEGRAND NETWORK IS NO 3 IN THE RATINGS AND NEEDS ALL THE VIEWERS IT CAN WREST AWAY FROM THE COMPETITION WOULD IT REALLY SPITE ITSELF BY PULLING EYECATCHING ADS FROM TV GUIDE YES A SENIOR NBC OFFICIAL SAYS ADDING THAT THE THREAT ISN'T HOLLOW THIS IS A BUSINESS ISSUE FOR NBC AS IT ATTEMPTS TO DEAL WITH ITS COMPETITIVE ENVIRONMENT THE NBC BRASS HAT SAYS THERE ARE OTHER WAYS TO SPEND MONEY IN ADVERTISING TO OBTAIN AN AUDIENCE THE PEACOCK NETWORK'S AD SPENDING AMOUNTS TO JUST A SMALL PORTION OF TV GUIDE'S ESTIMATED 600 MILLION IN YEARLY AD REVENUE BUT THE OVERT THREAT FROM NBC WHICH IS IN DISCUSSIONS WITH THE MAGAZINE COMES AS EVERIMPROVING LOCAL SUPPLEMENTS IN SUNDAY NEWSPAPERS AS WELL AS CABLEORIENTED RIVALS CABLE GUIDE AND TOTAL TV ARE ENCROACHING ON TV GUIDE'S TURF THE LOCAL SECTIONS IN PARTICULAR GENERALLY CARRY MORE COMPLETE LISTINGS THAN TV GUIDE AND AS IMPORTANT DON'T COST VIEWERS ANYTHING EXTRA NBC SAYS IT COULD JUST AS WELL BUY ADS IN SUNDAY SUPPLEMENTS THROUGH TV WEEK NETWORK A BUYING SERVICE THAT REPRESENTS 39 NEWSPAPERS INCLUDING AT LEAST ONE IN EACH OF THE TOP 30 MARKETS WITH A COMBINED CIRCULATION OF 24 MILLION THE SERVICE OWNED BY TRIBUNE CO AND NEWSPAPER ENTERTAINMENT NETWORK SAYS ITS REVENUE ROSE 52 LAST YEAR ALTHOUGH IT WON'T GIVE SPECIFIC NUMBERS TV GUIDE LAST YEAR RAISED ITS COVER PRICE 19 TO 89 CENTS FROM 75 CENTS A WEEK IN THE SECOND HALF OF 1992 TV GUIDE'S CIRCULATION SLIPPED 37 TO 151 MILLION COPIES EVEN MORE TROUBLING SINGLECOPY SALES DROPPED ALMOST 9 TO 65 MILLION ACCORDING TO THE AUDIT BUREAU OF CIRCULATIONS FIVE YEARS AGO TV GUIDE WAS ABLE TO BOAST OVER 20 MILLION SUBSCRIBERS STILL AD PAGES ROSE 19 IN THE FIRST QUARTER TO 756 PAGES ACCORDING TO THE PUBLISHERS INFORMATION BUREAU FOR ALL OF 1992 AD PAGES ROSE 4 AFTER DECLINING 19 IN 1991 AND FALLING 9 IN 1990 ANYTIME YOU COMPETE AGAINST SOMETHING FREE IT'S A CHALLENGE ADMITS JOSEPH W CECE TV GUIDE'S PRESIDENT AND PUBLISHER BUT IT'S IMPORTANT FOR US TO MAINTAIN OUR PRICE VALUE TO OUR READERS TV GUIDE PROVIDES COMMENTARY INDEPTH REPORTING AND GOSSIP ON TV WHEREAS MOST SUNDAY SUPPLEMENTS ARE SKIMPY ON ARTICLES BUT MOST VIEWERS KEEP THESE GUIDES BY THE REMOTE CONTROL FOR THE LISTINGS AND MR CECE DOESN'T SEE MUCH REASON FOR INCLUDING CNBC IN HIS CNBC FEELS STRONGLY THAT ITS PROGRAMMING SHOULD BE LISTED OUR EDITORIAL PEOPLE HAVEN'T YET COME TO THAT DECISION HE SAYS FLATLY ONE FACTOR IN WHAT GETS LISTED IS VIEWER DEMAND AND FOR CNBC IT ISN'T THERE TV GUIDE INSIDERS ARGUE CAROLINE VANDERLIP CNBC'S SENIOR VICE PRESIDENT OF MARKETING AND AFFILIATE RELATIONS SAYS SHE DISCOVERED THROUGH FOCUS GROUPS THAT VIEWERS WERE CONFUSED WHEN THEY WOULD SEE A CNBC AD IN TV GUIDE AND THEN SEARCH THE LISTINGS IN VAIN WHY SHOULD WE SPEND MONEY IN A MAGAZINE THAT FRUSTRATES THE VIEWER AND MAKES OUR AD INEFFECTIVE SHE SAYS I FEEL FOR TV GUIDE IT'S IN A DIFFICULT SITUATION AND DOESN'T HAVE THE CAPABILITY TO ADOPT TO AN EXPANDING TELEVISION UNIVERSE TV GUIDE PUBLISHES A MINDBOGGLING 113 EDITIONS BUT PLENTY OF CABLE SERVICES ARE IGNORED ALONG WITH CNBC INCLUDING COMEDY CENTRAL 28 MILLION SUBSCRIBERS AND E ENTERTAINMENT TELEVISION 215 MILLION CNBC IS ALONE HOWEVER IN ITS BOYCOTT OF TV GUIDE IT REMAINS A KEY WAY TO REACH PEOPLE SAYS DALE HOPKINS SENIOR VICE PRESIDENT OF MARKETING AT E WHICH FOCUSES ON ENTERTAINMENTINDUSTRY NEWS TV GUIDE IS EXPERIMENTING WITH A SUPPLEMENT CABLE EXTRA WHICH LISTS 12 CABLE CHANNELS INCLUDING CNBC COMEDY CENTRAL AND E IN THE BACK OF EDITIONS IN FOUR CITIES BOSTON CHICAGO LOS ANGELES AND PHILADELPHIA AND MR CECE SAYS TV GUIDE IS EXPLORING A LONGTERM REDESIGN TO HANDLE THE INCREASING DEMAND FOR LISTINGS FOR SUCH FLEDGLING SERVICES AS THE CARTOON NETWORK AND COURTROOM TELEVISION NETWORK MR CECE ISN'T BOWING TO THE NBC THREAT HOWEVER NOR DOES HE SEE IT AS REMOTELY LIKELY TO BE CARRIED OUT THE PEOPLE AT NBC ARE SMART ENOUGH TO KNOW HE SAYS THAT THEIR LACK OF ADVERTISING IN TV GUIDE WOULD DAMAGE THE NETWORK MUCH MORE THAN IT WOULD DAMAGE TV GUIDE CHESEBROUGHPOND'S USA THE TOILETRIES UNIT OF ANGLODUTCH UNILEVER MOVED ITS POND'S COLD CREAM ACCOUNT BACK TO WPP GROUP'S OGILVY & MATHER NEW YORK AFTER A TWOYEAR STAY FOR THE BRAND AT INTERPUBLIC GROUP'S MCCANNERICKSON THE GLOBAL REALIGNMENT MADE WITHOUT A REVIEW CONSOLIDATES AN ESTIMATED 20 MILLION TO 30 MILLION IN GLOBAL BILLINGS AT OGILVY'S FLAGSHIP OFFICE IN NEW YORK MCCANN'S NEW YORK OFFICE LOSES AN ESTIMATED 18 MILLION IN US BILLINGS IN THE POND'S SHIFT BUT WINS UNSPECIFIED BILLINGS IN OVERSEAS ASSIGNMENTS FOR CHESEBROUGH'S VASELINE BRAND AND AN ASSIGNMENT FOR UNSPECIFIED NEW SKINCARE PRODUCTS PETER ENGLAND CHESEBROUGH EXECUTIVE VICE PRESIDENT OF MARKETING AND SALES SAID IN AN INTERVIEW THAT THE COMPANY WASN'T DISSATISFIED WITH MCCANN'S WORK IT WAS AS GOOD IF NOT BETTER THAN ANY IN THE CATEGORY HE SAID IN FACT FORTHCOMING ADS FOR THE POND'S INSTITUTE PRODUCT LINE WERE CREATED BY MCCANN HE SAID ESTEE LAUDER INC A CLOSELY HELD COSMETICS FIRM SAID THAT IT IS ENDING ITS AGENCY REVIEW FOR THE ARAMIS ACCOUNT BY CREATING ITS OWN ADVERTISING FOR THE MEN'S FRAGRANCE LINE CREATIVE DUTIES ON THE ESTIMATED 10 MILLION ACCOUNT WERE HANDLED BY SAATCHI & SAATCHI CO'S AC&R ADVERTISING NEW YORK THAT AGENCY WILL CONTINUE TO BUY ARAMIS'S MEDIA AS WELL AS HANDLE THE REST OF THE ESTEE LAUDER ACCOUNT A NUMBER OF OTHER NEW YORK AGENCIES PITCHED THE ACCOUNT IN RECENT MONTHS INCLUDING DEUTSCH/DWORIN AND AC&R SISTER AGENCY SAATCHI & SAATCHI ADVERTISING AN ESTEE LAUDER SPOKESWOMAN SAID THE COMPANY WAS EVALUATING WHETHER IT WOULD NEED TO HIRE MORE PEOPLE AT ITS INHOUSE AGENCY TO DO THE STRATEGIC AND CREATIVE WORK ACCOUNT KYOCERA CORP'S KYOCERA ELECTRONICS UNIT TAPPED WELLS RICH GREENE BDDP NEW YORK TO HANDLE ADVERTISING PROMOTION AND DIRECT MARKETING FOR THE ECOSYS ASI LINE OF DESKTOP PRINTERS BILLINGS ARE ESTIMATED AT 5 MILLION WELLS RICH SAID THE NEW CLIENT DIDN'T POSE A CONFLICT WITH THE CORPORATE ADVERTISING IT HANDLES FOR INTERNATIONAL BUSINESS MACHINES CORP 9304190017 930419 BUSINESS BRIEF HAVAS SA MEDIA TOURISM FIRM DOUBTS OPERATING PROFIT WILL RISE HAVAS SA A FRENCH MEDIA AND TOURISM COMPANY SAID ITS PROFIT FROM OPERATIONS HAS LITTLE CHANCE OF RISING IN 1993 GIVEN THE UNFAVORABLE ECONOMIC CONDITIONS IN 1992 PRETAX PROFIT FROM OPERATIONS WHICH INCLUDES FINANCIAL ELEMENTS ROSE 23 TO 189 BILLION FRANCS 348 MILLION HAVAS ALSO CONFIRMED EARLIER ESTIMATES THAT NET PROFIT IN 1992 FELL 24 TO 823 MILLION FRANCS FROM 108 BILLION FRANCS IN 1991 REVENUE ROSE 64 TO 2818 BILLION FRANCS IN A BREAKDOWN OF PRETAX PROFIT FROM OPERATIONS HAVAS SAID THAT ITS AUDIOVISUAL ACTIVITIES PROVIDED 559 MILLION FRANCS IN 1992 UP FROM 443 MILLION FRANCS IN 1991 VARIOUS ADVERTISING ACTIVITIES PROVIDED A TOTAL OF 1048 BILLION FRANCS UP SLIGHTLY FROM 1045 BILLION FRANCS IN 1991 PUBLISHING INCOME FELL TO 180 MILLION FRANCS FROM 244 MILLION FRANCS TOURISM ACTIVITIES SHOWED A 22 MILLION FRANC PROFIT AFTER A 40 MILLION FRANC LOSS IN 1991 9304190016 930419 CONVERSIONS OF THRIFTS TO STOCK OWNERSHIP SURGE RAISING BILLIONS NEW YORK CONVERSIONS OF THRIFTS FROM MUTUAL TO STOCK OWNERSHIP ARE SURGING AGAIN RAISING BILLIONS OF DOLLARS IN CAPITAL FOR SAVINGS INSTITUTIONS THE OFFICE OF THRIFT SUPERVISION SAYS THE VALUE OF STOCK SOLD BY MUTUAL THRIFTS EXCEEDED 1 BILLION IN 1992 THE FIRST TIME IT CROSSED THAT THRESHOLD SINCE 1987 WHEN SUCH ACTIVITY BEGAN A THREEYEAR DECLINE THE NEW WAVE OF CONVERSIONS HAS BOLSTERED THE CAPITAL BASE OF HUNDREDS OF SAVINGS INSTITUTIONS AT A TIME WHEN THEY ARE UNDER PRESSURE TO MEET TOUGHER FEDERAL REGULATIONS IT'S ALSO ATTRACTED A LOT OF INTEREST FROM INVESTORS IT'S A HUGE BONANZA SAYS REID NAGLE AN ANALYST AT SNL SECURITIES IN CHARLOTTESVILLE VA WHICH SPECIALIZES IN FINANCIAL INSTITUTIONS TO WOO INVESTORS TO AN INDUSTRY THAT HAS COST TAXPAYERS BILLIONS OF DOLLARS THESE GENERALLY HEALTHY THRIFTS ARE GOING PUBLIC AT RELATIVELY LOW PRICES IN THE LATEST ROUND OF CONVERSIONS THE SHARES OF MOST MUTUAL THRIFTS HAVE BEEN PRICED AT 40 TO 60 OF THEIR PRO FORMA BOOK VALUE MR NAGLE SAYS MEANWHILE THE SHARES OF THE AVERAGE PUBLICLY TRADED THRIFT WERE SELLING ON MARCH 31 FOR 94 OF BOOK VALUE UNLIKE MOST PUBLIC OFFERINGS FEDERAL REGULATIONS PERMITTING CONVERSIONS DECIDE THE ORDER OF WHO IS ELIGIBLE TO BUY STOCK FIRST IN LINE IS THE THRIFT'S TAXQUALIFIED EMPLOYEE BENEFIT PLAN WHICH CAN PURCHASE AS MUCH AS 10 OF THE NEW SHARES THEN COMES DEPOSITORS WHO MUST HAVE AT LEAST 50 IN THE THRIFT AND ARE DIVIDED INTO TWO TIERS THOSE WHO HAVE HAD MONEY AT THE THRIFT AT LEAST 90 DAYS BEFORE ITS BOARD DECIDES TO CONVERT AND THOSE WHO MAKE DEPOSITS AFTER THE DECISION IS MADE LAST IN LINE ASSUMING ANY SHARES ARE LEFT ARE MEMBERS OF THE COMMUNITY AND THEN THE GENERAL PUBLIC NO INDIVIDUAL CAN BUY MORE THAN 5 OF AN OFFERING'S SHARES 9304190015 930419 WHO'S NEWS MAY DEPARTMENT STORES CO MAY DEPARTMENT STORES CO ST LOUIS MARY MORGAN ASSISTANT TO VICE CHAIRMAN RICHARD L BATTRAM WAS NAMED A VICE PRESIDENT OF THIS RETAILER 9304190014 930419 JAPANESE CORPORATE INSOLVENCIES TOKYO JAPANESE CORPORATE INSOLVENCIES IN MARCH ROSE 18 FROM THE YEAREARLIER MONTH TO 1340 CASES LEAVING BEHIND 77529 BILLION YEN 685 BILLION IN DEBT TEIKOKU DATA BANK LTD REPORTED MANY COMPANIES WERE FORCED INTO INSOLVENCY BY THE PROTRACTED NATURE OF THE NATION'S ECONOMIC SLOWDOWN TEIKOKU DATA BANK A PRIVATE CREDIT RESEARCH AGENCY SAID 9304190012 930419 WHO'S NEWS TIME WARNER INC TIME WARNER INC NEW YORK JOHN PAPANEK 41 YEARS OLD WAS NAMED EDITOR IN CHIEF OF THE TIME LIFE INC UNIT A MARKETER OF BOOKS MUSIC AND VIDEOS IN ALEXANDRIA VA EFFECTIVE JUNE 1 HE SUCCEEDS TOM FLAHERTY 64 WHO IS RETIRING MR PAPANEK HAD BEEN DIRECTOR OF NEW MEDIA AT TIME INC ANOTHER UNIT TIME WARNER IN ADDITION TO MAGAZINE AND BOOK PUBLISHING ALSO HAS BROADCAST MUSIC AND ENTERTAINMENT INTERESTS 9304190011 930402 LETTERS TO THE EDITOR OUR WILDLIFE KILLING FIELDS PATRICK SEAMAN'S PORTRAIT OF HUNTERS AS WILDLIFE SAVIORS IS PURE BULLFEATHERS NATURE'S BRUTAL POPULATION CONTROL LETTERS TO THE EDITOR MARCH 16 THE WILDLIFE IN THIS COUNTRY IS CONTROLLED NOT BY THE 94 OF US WHO LIKE OUR WILDLIFE ALIVE BUT BY THE 6 WHO HUNT THIS IS BECAUSE OUR FEDERAL AND STATE FISH AND GAME WILDLIFE AND CONSERVATION AGENCIES ARE RUN BY AND FOR THESE SPORTSMEN THE POLITICAL ACTION COMMITTEE OF THE NATIONAL RIFLE ASSOCIATION BACKED BY THE ARMS MANUFACTURERS POURS MONEY INTO POLITICIANS' CAMPAIGN FUNDS AND THEY WHEN ELECTED RETURN THE FAVOR BY NAMING HUNTERS TO ADMINISTRATE OUR WILDLIFE CONSERVATION AND ENVIRONMENTAL AGENCIES CONSEQUENTLY THE GUN NUTS SWARM THROUGH OUR NATIONAL AND STATE PARKS THEY'VE TURNED 259 OF OUR 452 NATIONAL WILDLIFE SANCTUARIES INTO BLOODY KILLING FIELDS THEY MASSACRE THE ANIMALS WITH SEMIAUTOMATIC RIFLES HIGHPOWERED BOWS AND ARROWS AND THE BARBARIC STEELJAWED LEGHOLD TRAP OUTLAWED FOR ITS CRUELTY IN 70 COUNTRIES FROM ARGENTINA TO ZIMBABWE BUT NOT THANKS TO OUR WILDLIFE AGENCIES HERE THEY BRAG THAT THEIR HUNTING LICENSE FEES AND EQUIPMENT EXCISE TAXES PAY FOR WILDLIFE CONSERVATION BUT THIS MONEY DOESN'T EVEN PAY FOR THE GAME WARDENS NECESSARY TO POLICE THEM THE US FISH AND WILDLIFE SERVICE STATE FISH AND GAME COMMISSIONS AND DEPARTMENTS OF NATURAL RESOURCES THE US FOREST SERVICE AND SIMILAR FEDERAL AND STATE AGENCIES MAKE ALL OUR WILDLIFE LAWS AND USE OUR TAXES NOT TO PROTECT WILDLIFE BUT FOR GAME MANAGEMENT PROGRAMS THESE INCLUDE BULLDOZING SECTIONS OF FORESTS AND PLANTING LOWLEVEL VEGETATION TO INCREASE THE NUMBER OF GRAZING ANIMALS MOSTLY DEER FOR HUNTERS AT THE EXPENSE OF OTHER FOREST CREATURES HANDRAISING BIRDS SUCH AS PHEASANTS QUAIL AND GROUSE FOR HUNTER FODDER TRANSPORTING ANIMALS FROM ONE STATE TO ANOTHER TO BUILD POPULATIONS FOR HUNTING AND STIMULATING BREEDING WITH BUCKONLY HUNTS WHICH CAN LEAVE EVERY BUCK LEFT ALIVE AS MANY AS SIX DOES TO IMPREGNATE THEN THEY SOUND THEIR BATTLE CRY WE MUST SHOOT THEM OR THEY WILL STARVE HUNTERS AND TRAPPERS HAVE ALL BUT ANNIHILATED MANY SPECIES INCLUDING COUGARS WOLVES MARTENS BOBCATS AND WOLVERINES BEARS ARE ON THEIR WAY OUT TWOTHIRDS OF OUR WILDDUCK POPULATION IS GONE AND ENOUGH LEAD SHOT BLANKETS OUR WETLANDS TO POISON THE REST HOW OFTEN THESE DAYS DO YOU HEAR DUCKS OR GEESE HONKING OVERHEAD IF YOU'RE SICK OF HAVING HUNTERS AND TRAPPERS CALL THE SHOTS ON US WILDLIFE DEMAND THAT YOUR LEGISLATORS APPOINT NONHUNTERS TO RUN OUR WILDLIFE ENVIRONMENTAL AND CONSERVATION AGENCIES THERE ARE MANY QUALIFIED CANDIDATES SEE RELATED LETTERS LETTERS TO THE EDITOR SPORTSMEN KEEP THOSE DUCKS IN THE SKY WSJ APRIL 16 1993 9304020153 9304190010 930419 INTERNATIONAL RUSSIAN COURT SUSPENDS COUP TRIAL OVER ILLNESS MOSCOW AP THE RUSSIAN SUPREME COURT ON FRIDAY INDEFINITELY SUSPENDED THE TRIAL OF THE ALLEGED RINGLEADERS OF THE FAILED COUP IN AUGUST 1991 BECAUSE ONE OF THE 12 DEFENDANTS IS ILL THE PRESIDING JUDGE MAJ GEN ANATOLY UKOLOV SAID THE COURT WOULD DECIDE WHEN TO RESUME THE TRIAL AFTER IT RECEIVED A MEDICAL REPORT ON ALEXANDER TIZYAKOV 67 YEARS OLD WHO WAS RUSHED FROM THE COURTROOM WITH HEART TROUBLE ON WEDNESDAY THE OPENING DAY OF THE TRIAL THE MEDICAL REPORT WILL DETERMINE WHETHER HE IS TRULY TOO SICK TO DEFEND HIMSELF BEFORE THE COUP MR TIZYAKOV HEADED AN ASSOCIATION OF STATE FACTORIES IN THE FORMER SOVIET UNION THE OTHER DEFENDANTS INCLUDE SOME OF THE MOST POWERFUL MEN OF THE OLD COMMUNIST REGIME FORMER KGB CHIEF VLADIMIR KRYUCHKOV DEFENSE MINISTER DMITRY YAZOV SOVIET PARLIAMENT LEADER ANATOLY LUKYANOV AND VICE PRESIDENT GENNADY YANAYEV THEY ARE ACCUSED OF PLACING MIKHAIL GORBACHEV UNDER HOUSE ARREST AND GRABBING POWER ON AUG 1821 1991 IN AN ATTEMPT TO PRESERVE THE SOVIET UNION UNDER HARDLINE COMMUNIST RULE IF THE DEFENDANTS ARE FOUND GUILTY THEY COULD FACE THE DEATH PENALTY 9304190009 930419 ISRAELI RUSSIAN JEWS FIND THEMSELVES IN A MEATY DEBATE EXSOVIETS UNWILLING TO STOP EATING PORK ARE BLAMED FOR INCREASING SOCIAL WOES BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL KIRYAT SHMONAH ISRAEL THREE HUNDRED PEOPLE ARE PRESSED OUTSIDE THE DOORS TO FANIA AND MICHAEL OSTRAIKH'S PORK SHOP IN THE CENTER OF TOWN REDFACED AND SCREAMING SEVERAL DEMONSTRATORS TRY TO FORCE THEIR WAY INTO THE TINY STORE FILTH FILTH THEY SCREAM AS A POLICE OFFICER BLOCKS THEIR WAY AS HE WATCHES THE SCENE AGAIN ON A VIDEOTAPE IN HIS APARTMENT MR OSTRAIKH SUDDENLY RISES AND SHUTS OFF THE TELEVISION WHAT DO THEY WANT FROM US HE ASKS SELLING PORK IS THE ONLY WAY I CAN MAKE A LIVING THAT IS WHEN THEIR TROUBLES BEGAN JEWISH DIETARY LAW PROHIBITS EATING MANY SPECIES OF ANIMAL FOWL AND FISH BUT NONE EVOKES THE SAME REVULSION AS THE PIG LOCAL RESIDENTS WERE SO ENRAGED AT THE IDEA OF PORK BEING SOLD OPENLY IN TOWN THAT THEY SOON TOOK MATTERS INTO THEIR OWN HANDS THE COUPLE'S CAR WAS VANDALIZED THE STORE WAS PICKETED ONE TIME CUSTOMERS HAD TO BE EVACUATED AFTER THE POLICE RECEIVED A PHONE CALL REPORTING A SUSPICIOUS OBJECT IN THE SHOP THE BOMB SQUAD ARRIVED READY TO DEFUSE A BOMB THE SUSPICIOUS OBJECT TURNED OUT TO BE THE BACON THE PASTRAMI AND THE SAUSAGES WHEN SCARE TACTICS DIDN'T WORK RESIDENTS LOBBIED THE CITY COUNCIL WHICH PASSED A BILL BANNING THE SALE OF PORK IN KIRYAT SHMONAH CITY OFFICIALS SAY THEY HAVEN'T CLOSED DOWN THE STORE YET BECAUSE THEY CANNOT ENFORCE LAWS DEALING WITH RELIGIOUS ISSUES WITHOUT PERMISSION FROM THE KNESSET OR PARLIAMENT WHICH MAY TAKE SEVERAL MONTHS TO ACT WHEN LARGE NUMBERS OF RUSSIAN JEWS BEGAN ARRIVING IN ISRAEL THREE YEARS AGO ISRAELIS RUSHED TO EMBRACE THEM AS TROUBLED PERSECUTED JEWS SEEKING REFUGE IN THE JEWISH HOMELAND FURNITURE AND CLOTHING WERE DONATED IMMIGRANT FAMILIES WERE ADOPTED AND INVITED INTO HOMES TO CELEBRATE HOLIDAYS BUT THAT INITIAL ATTITUDE CHANGED AND RUSSIANS ARE INCREASINGLY BEING BLAMED FOR EVERYTHING FROM A RISE IN DRUNKENDRIVING ACCIDENTS AND PROSTITUTION TO GROWING UNEMPLOYMENT NATAN SHARANSKY THE HEAD OF THE IMMIGRANT SELFHELP GROUP SOVIET JEWRY ZIONIST FORUM CITES POLLS FROM DIFFERENT SCHOOLS THAT SHOW 70 OF THE STUDENTS DON'T LIKE THEIR RUSSIAN CLASSMATES THE NATIONAL COUNCIL FOR THE CHILD A PRIVATE WELFARE ASSOCIATION ESTIMATES HUNDREDS OF PUPILS HAVE DROPPED OUT OF SCHOOL AND GONE BACK TO THE FORMER SOVIET UNION TO COMPLETE THEIR EDUCATION BECAUSE OF SOCIAL REJECTION BY THEIR ISRAELI PEERS AND OTHER DIFFICULTIES ADJUSTING TO LIFE IN ISRAEL A TELEVISION PROGRAM REPORTED THAT NEARLY HALF OF THE NEW IMMIGRANTS DON'T WANT TO DO COMPULSORY MILITARY SERVICE IN THE ISRAELI ARMY ALWAYS CONSIDERED ISRAEL'S MOST EFFECTIVE MELTING POT CREATING A FURTHER STIGMA BUT GERSHON GERSHON SPOKESMAN FOR THE ZIONIST FORUM SAYS THE GROWING ANTAGONISM TOWARD THE IMMIGRANTS ISN'T JUSTIFIED BY STATISTICS OVERALL CRIME AMONG RUSSIANS HE SAYS IS ACTUALLY FOUR TO FIVE TIMES LESS THAN AMONG LONGTIME ISRAELIS MOST OF THE HOSTILITY REFLECTS FEAR OF JOB COMPETITION FROM NEW IMMIGRANTS WITH BETTER SKILLS AND MORE EDUCATION AS FOR THE RUSSIANS' SUPPOSED LACK OF ENTHUSIASM FOR THE ARMY MR GERSHON SAYS IT IS JUST A MATTER OF TIME ISRAELIS CAN'T EXPECT RUSSIAN KIDS WHO HAVE SPENT THREE YEARS IN HIGH SCHOOL BEING SOCIALLY REJECTED TO WAKE UP WHEN THEY'RE 18 AND SUDDENLY WANT TO DEFEND A COUNTRY THEY DON'T FEEL PART OF HE SAYS THE WELCOME RECEPTION FOR THESE PEOPLE ENDED AT THE AIRPORT IN KIRYAT SHMONAH A TOWN OF 19000 WHOSE POPULATION HAS GROWN CLOSE TO 20 IN THE PAST SEVERAL YEARS BECAUSE OF THE IMMIGRANT INFLUX THE CULTURAL CONFLICT HAS BEEN ESPECIALLY SHARP THE VAST MAJORITY OF THE TOWN'S RESIDENTS ARE SEPHARDIC JEWS WHOSE ORIGINS ARE IN MIDDLE EASTERN COUNTRIES RATHER THAN EUROPE AND WHO UNLIKE THE RUSSIANS TEND TO HAVE A MORE TRADITIONAL OUTLOOK WHEN IT COMES TO JEWISH LAW AND CUSTOMS WHAT HAVE THE RUSSIANS BROUGHT TO THIS TOWN SAYS CHARLIE YEHEZYELI 25 STANDING OUTSIDE THE SHOE STORE WHERE HE WORKS JUST A FEW DOORS DOWN FROM THE OSTRAIKHS' PORK SHOP PORK AND PROSTITUTION THAT'S IT PORK AND PROSTITUTION PORK HAS ALWAYS BEEN CONTROVERSIAL IN ISRAEL WHERE MINORITY RELIGIOUS POLITICAL PARTIES HAVE TRIED FOR MORE THAN TWO DECADES TO PUSH ANTIPORK LEGISLATION THROUGH THE KNESSET A 1963 LAW FORBIDS JEWS TO RAISE PIGS AND ANOTHER BILL IS NOW BEFORE PARLIAMENT THAT WOULD BAN PORK PROCESSING THE RUSSIAN IMMIGRATION RESULTED IN NONKOSHER DELIS SPRINGING UP IN TOWNS WHERE PORK HAD NEVER BEEN SOLD BEFORE HADAS SANDEROWICZ MANAGER OF MAADANEY MIZRA THE COUNTRY'S LARGEST NONKOSHER MEAT PROCESSING PLANT SAYS DEMAND FOR PORK HAS RISEN 10 IN THE THREE YEARS SINCE THE NEW IMMIGRANTS BEGAN ARRIVING THE COMPANY FOUNDED IN 1957 SOLD 2300 TONS OF PROCESSED MEAT LAST YEAR UP 6 FROM THE YEAR BEFORE THE COMPANY BUYS FROM LOCAL CHRISTIAN PIG FARMERS THE MARKET WAS ALWAYS LIMITED BUT NOW WE HAVE AN AUDIENCE SAYS MS SANDEROWICZ THE RUSSIANS EAT A LOT OF MEAT AND THEY'RE NOT WILLING TO GIVE UP ON PORK RABBI NISSIM MALKAH HEAD OF THE TOWN'S RELIGIOUS COUNCIL CONCEDES THAT PORK WAS SOLD IN KIRYAT SHMONAH BEFORE THE RUSSIAN IMMIGRANTS ARRIVED BUT HE SAYS THOSE SHOPS OPERATED ALMOST SECRETLY WERE LOCATED ON THE OUTSKIRTS OF TOWN AND HAVE BEEN CLOSED FOR YEARS COMMERCIAL DISTRICT THE OSTRAIKHS' SHOP ON THE OTHER HAND IS LOCATED IN THE HEART OF THE TOWN'S COMMERCIAL DISTRICT AND THE COUPLE RILED RESIDENTS BY ADVERTISING THEIR PORK IN THE LOCAL NEWSPAPER THE IMMIGRANTS INTRODUCED A CULTURE THAT IS FOREIGN TO THIS TOWN SAYS RABBI MALKAH THE RESIDENTS SAW JEWS SELLING PORK AND PUTTING UP CHRISTMAS TREES WE DIDN'T EXPECT THEM TO BE ZIONISTS BUT WE THOUGHT THAT AT LEAST THEY WOULD COME AS JEWS BUT TO MANY PEOPLE HERE THE IMMIGRANTS SEEM LIKE STRANGERS RATHER THAN PART OF THE JEWISH NATION KIRYAT SHMONAH'S PORK WAR SOON BECAME THE MAIN BATTLEGROUND FOR THE BROADER TENSIONS CREATED BY THE IMMIGRATION YONA FERTOUK WHO WORKS IN THE CULTURE SECTION OF THE NATIONAL TRADE FEDERATION'S WORKERS' COUNCIL SAYS LONGTIME CITIZENS ARE STILL COMING TO GRIPS WITH HOW THE RUSSIANS HAVE CHANGED THE TOWN'S SOCIAL FABRIC A TYPICAL SOCIAL OUTING HERE INVOLVED 50 PEOPLE EATING MEAT COOKED ON THE FIRE DRINKING AND LAUGHING TOGETHER WITH LOUD MIDDLE EASTERN MUSIC PLAYING AND KIDS RUNNING AROUND NOW I CAN FILL A HALL FOR A CONCERT OF CLASSICAL MUSIC HE SAYS WHEN THE PORK STORE OPENED IT WAS A RED LIGHT FOR THE OLDTIMERS WHO SUDDENLY BEGAN NOTICING ALL THE DIFFERENT CHANGES HAPPENING HERE THERE WAS THIS FEELING THAT THE RUSSIANS HAD TAKEN OVER THE TOWN'S CULTURE FOR GOOD AND FOR ILL THEY BROUGHT THE BIG CITY TO US WHEN THE TROUBLES BEGAN THE OSTRAIKHS PUT A PETITION ON THE FROZENFOOD COUNTER AND ASKED FOR SIGNATURES ABOUT 800 PEOPLE SIGNED INCLUDING MANY LONGTIME ISRAELIS THEY SAY SOME OF OUR BEST CUSTOMERS ARE THE ISRAELIS THIS IS A DEMOCRACY SAYS MRS OSTRAIKH IF PEOPLE DON'T WANT TO EAT PORK THEY DON'T HAVE TO BUY IT DURING THE PICKETING SEVERAL DEMONSTRATORS STOOD OUTSIDE THE STORE PHOTOGRAPHING CUSTOMERS WHO TRIED TO ENTER PEOPLE WERE SCARED TO COME THEN BUT NOW IT'S BACK TO NORMAL SAYS MR OSTRAIKH THIS BUSINESS WON'T MAKE IT IF WE CAN'T SELL PORK THERE ARE ALREADY ENOUGH STORES THAT SELL KOSHER MEAT AND I WOULDN'T BE ABLE TO COMPETE WHATEVER THE OUTCOME THE OSTRAIKHS SAY THEY AREN'T LEAVING KIRYAT SHMONAH ALREADY 25 MEMBERS OF THEIR FAMILY HAVE LEFT TASHKENT AND MOVED TO THE TOWN WE HAVE FIVE GRANDCHILDREN SAYS MRS OSTRAIKH THEN USING THE HEBREW WORD FOR A NATIVEBORN ISRAELI SHE ADDS PROUDLY ONE OF THEM IS A SABRA 9304190008 930419 LETTERS TO THE EDITOR IF THEY MAKE MORE THAN US TAX 'EM WHAT A SORRY STATE OF AFFAIRS EXISTS WHEN MORE THAN 60 OF AMERICANS WITH ANNUAL HOUSEHOLD INCOMES ABOVE 75000 SUPPORT CLINTON'S PROPOSAL TO INCREASE THE TOP TAX RATE FOR FAMILIES THAT EARN OVER 140000 A YEAR WASHINGTON WIRE MARCH 12 WE CAN ASSUME THAT TAX INCREASES ARE ACCEPTABLE AS LONG AS THEY AFFECT ONLY THOSE WHO EARN MORE THAN WE DO OTHERWISE STATED A RECESSION IS WHEN MY NEIGHBOR LOSES HIS JOB A DEPRESSION IS WHEN I LOSE MINE WHEN WILL PEOPLE ADDRESS THE REAL PROBLEMS WASTE PORK AND POWER WHEN OUR FOREFATHERS DUMPED TEA IN BOSTON HARBOR THEY WERE FED UP WITH GOVERNMENTAL IMPOSITIONS THEY DID NOT SUGGEST THAT INCREASED TAXES WOULD SOLVE THEIR BURDENS ARE THERE ANY CHANCES FOR A TAXPAYER REVOLT TODAY I'D LIKE TO THINK SO BUT I DOUBT IT FORGET TAX INCREASES FOR A MOMENT INSTEAD LET'S DEMAND MASSIVE CUTBACKS IN GOVERNMENTAL STAFFING DOES HILLARY'S TASK FORCE HAVE TO BE LARGER THAN 99 OF AMERICAN BUSINESS LET'S INSIST ON TERM LIMITS HOW MANY PEOPLE REALIZE THAT THE FRESHMEN CONGRESSMEN ARE ALREADY GOING ALONG WITH THE FLOW INSTEAD OF HONORING THEIR CAMPAIGN PLEDGES LET'S SUPPORT THE LINEITEM VETO FOR ALL BILLS ROBERT'S RULES ARE GREAT BUT NOT WHEN IRRELEVANT AMENDMENTS ARE PLUGGED INTO MEANINGFUL LEGISLATION AND FINALLY HOW ABOUT A LAW THAT PROHIBITS LEGISLATORS FROM PROPOSING LEGISLATION FROM WHICH THEY THEMSELVES ARE EXEMPT HOW ABOUT A REVOLT A LA THE BOSTON TEA PARTY TO ADDRESS THE REAL PROBLEMS WHICH ARE A REFLECTION OF POWERHUNGRY POLITICIANS RUNNING WILD REMEMBER GEORGE ORWELL'S ANIMAL FARM BY THE END OF THAT STORY YOU COULDN'T TELL THE FARMERS FROM THE PIGS SURE LOOKS LIKE OUR GOVERNMENT TO ME 9304190007 930419 INTERDIGITAL COMMUNICATIONS FILES SUIT OVER CELLULAR PHONE TECHNOLOGY PATENT BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FIGHT OVER DIGITAL TECHNOLOGIES FOR THE CELLULAR TELEPHONE INDUSTRY HEATED UP AS INTERDIGITAL COMMUNICATIONS CORP FILED A LAWSUIT AGAINST QUALCOMM INC OKI ELECTRIC INDUSTRY CO OF TOKYO AND ITS SUBSIDIARY OKI AMERICA INC CHARGING PATENT INFRINGEMENT THE SUIT FILED IN FEDERAL COURT IN PHILADELPHIA IS OVER A NEW TRANSMISSION TECHNOLOGY CALLED CODE DIVISION MULTIPLE ACCESS OR CDMA WHICH WAS DEVELOPED BY SAN DIEGOBASED QUALCOMM INTERDIGITAL'S ALLEGATION SPECIFIES A PART OF THE TECHNOLOGY THAT DIGITALLY PASSES A CELLULAR SIGNAL FROM ONE CALLING AREA TO ANOTHER THE SUIT WAS FILED JUST AS A TELECOMMUNICATIONS INDUSTRY FORUM IS WINDING UP ITS WORK ON ESTABLISHING A CDMA STANDARD ONE WOULD HAVE TO QUESTION THE TIMING OF THE LAWSUIT AS IT HAPPENED TO ARRIVE THE DAY THE BALLOTS WERE BEING COUNTED ON THE WHOLE CDMA STANDARD SAID HARVEY WHITE QUALCOMM'S CHIEF OPERATING OFFICER MR WHITE SAID THE LAWSUIT SHOULDN'T DELAY THE STANDARD WHICH WOULD LET MANY MANUFACTURERS MAKE CDMA EQUIPMENT MR WHITE SAID QUALCOMM DOESN'T BELIEVE INTERDIGITAL'S TECHNOLOGY IS NEEDED TO ACCOMPLISH THE CALL TRANSFER BESIDES HE SAID QUALCOMM FILED A PATENT COVERING ALL FEATURES NECESSARY TO TRANSFER CALLS FROM CELL TO CELL 20 MONTHS BEFORE INTERDIGITAL FILED ITS PATENT OFFICIALS AT THE TELECOMMUNICATIONS INDUSTRY ASSOCIATION WHICH SPONSORS THE STANDARDSSETTING FORUM WEREN'T AVAILABLE FOR COMMENT ANY DELAY WOULD WORK TO INTERDIGITAL'S ADVANTAGE THE COMPANY BASED IN KING OF PRUSSIA PA HOLDS MANY OF THE PATENTS ON THE RIVAL DIGITAL CELLULAR TECHNOLOGY KNOWN AS TIME DIVISION MULTIPLE ACCESS OR TDMA STANDARDS HAVE BEEN ESTABLISHED FOR THAT TECHNOLOGY AND SEVERAL CELLULAR COMPANIES INCLUDING MCCAW CELLULAR COMMUNICATIONS INC AND SOUTHWESTERN BELL CORP HAVE INSTALLED IT IN PORTIONS OF THEIR NETWORKS WITH TDMA MESSAGES ARE BROKEN INTO SMALL UNITS TRANSMITTED IN DIFFERENT TIME SLOTS IN SHORT BURSTS AND REASSEMBLED AT THEIR DESTINATIONS THE SUIT CHARGES THAT CDMABASED PHONES THAT OKI PLANS TO MAKE AND OTHER EQUIPMENT QUALCOMM PLANS TO MANUFACTURE INFRINGE ON INTERDIGITAL'S PATENT INTERDIGITAL ACQUIRED THE PATENT IT CLAIMS IS BEING VIOLATED WHEN IT BOUGHT SCS MOBILECOM INC LAST YEAR SCS MOBILECOM'S TECHNOLOGY KNOWN AS BROADBAND CDMA BREAKS MESSAGES INTO SMALL BITS LABELS EACH WITH A UNIQUE CODE AND SPREADS THE MESSAGE THROUGHOUT AN ENTIRE BAND OF THE RADIO SPECTRUM MANY CONVERSATIONS AND DATA MESSAGES ARE TRANSMITTED AT THE SAME TIME EACH REASSEMBLED AT THE RIGHT DESTINATION AND IN THE RIGHT ORDER BASED ON THEIR CODES THE TECHNOLOGY IS SIMILAR TO QUALCOMM'S NARROWBAND CDMA WHICH USES 125 MEGAHERTZ OF RADIO SPECTRUM INSTEAD OF THE 10 MEGAHERTZ THE SCS SYSTEM USES INTERDIGITAL IS SEEKING PRELIMINARY AND PERMANENT INJUNCTIONS AS WELL AS COMPENSATORY DAMAGES HOWEVER WITHOUT A CDMA STANDARD MANUFACTURERS AREN'T PRODUCING CDMA PHONES MUCH IS AT STAKE OVER THE NEXT SEVERAL YEARS CELLULAR PHONE COMPANIES PLAN TO SPEND BILLIONS OF DOLLARS TO REPLACE THEIR NETWORKS WITH ONES THAT TRANSMIT MESSAGES DIGITALLY THE LAWSUIT ALSO ALLEGES TDMA PHONES THAT OKI ELECTRIC AND OKI AMERICA PLAN TO MANUFACTURE VIOLATE SIX INTERDIGITAL PATENTS INTERDIGITAL SUGGESTED OTHER SUITS ALLEGING TDMA PATENT VIOLATIONS MIGHT FOLLOW ROBERT BRAMSON PRESIDENT OF INTERDIGITAL'S INTERDIGITAL TECHNOLOGY CORP SAID THE COMPANY BELIEVES ITS PATENTS ARE STRONG AND COMPREHENSIVE WE INTEND TO ENFORCE OUR PATENTS AGGRESSIVELY AGAINST INFRINGERS 9304190006 930419 GM AND FORD TO IDLE A TOTAL OF TWO PLANTS DURING THIS WEEK DETROIT GENERAL MOTORS CORP AND FORD MOTOR CO PLAN TO IDLE A TOTAL OF TWO ASSEMBLY PLANTS THIS WEEK BECAUSE OF SLOW SALES GM SAID IT'S IDLING ITS ARLINGTON TEXAS ASSEMBLY PLANT WHICH BUILDS THE BUICK ROADMASTER CHEVROLET CAPRICE AND CADILLAC FLEETWOOD BROUGHAM FOR ONE WEEK GM SAID IT ALSO WILL ONLY OPERATE ONE SHIFT INSTEAD OF TWO AT ITS HAMTRAMCK MICH ASSEMBLY PLANT WHICH BUILDS THE BUICK RIVIERA CADILLAC ELDORADO SEVILLE AND ALLANTE FORD SAID IT'S IDLING ITS WAYNE MICH ASSEMBLY PLANT WHICH BUILDS THE FORD ESCORT GM FORD AND CHRYSLER CORP HAVE PLANNED DAILY OVERTIME AT SEVERAL ASSEMBLY PLANTS 9304190005 930419 HONG KONG BANK LICENSES HONG KONG TWO LOCAL INVESTMENTSERVICES CONCERNS WITH STRONG BRITISH TIES OBTAINED FULL BANKING LICENSES IN HONG KONG WARDLEY LTD AND JARDINE FLEMING & CO BECAME THE FIRST LOCALLY INCORPORATED FIRMS TO OBTAIN BANKING LICENSES IN 11 YEARS EXECUTIVES FROM BOTH CONCERNS SAID THEY SOUGHT THE NEW STATUS TO ENHANCE THEIR EXISTING OPERATIONS IN PRIVATE BANKING AND TREASURY MANAGEMENT AND HAD NO PLANS TO ENTER RETAIL BANKING THEIR PRIMARY BUSINESSES ARE FUND MANAGEMENT CORPORATE FINANCE AND STOCK BROKERAGE WARDLEY LTD IS A UNIT OF WARDLEY HOLDINGS LTD THE MERCHANTBANKING ARM OF HSBC HOLDINGS PLC 9304190004 930419 WHO'S NEWS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC DALLAS PAUL M BRYANT WAS NAMED VICE PRESIDENT HUMAN RESOURCES OF THIS ENGINEERING AND OIL SERVICES CONCERN EFFECTIVE APRIL 30 MR BRYANT 46 YEARS OLD WAS MOST RECENTLY VICE PRESIDENT HUMAN RESOURCES AT DRESSERRAND CO CORNING NY HE SUCCEEDS RICHARD E HAUSLEIN WHO WILL RETIRE WITHIN THE NEXT YEAR 9304190003 930419 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING THREE INITIAL PUBLIC OFFERINGS WHILE THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ALSO ANNOUNCED FOUR NEW LISTINGS INCLUDING THREE INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING THE BIG BOARD SAID IT BEGAN TRADING AS INITIAL PUBLIC OFFERINGS MANAGED HIGH INCOME PORTFOLIO INC NEW YORK UNDER MHY MUNIVEST FUND II INC PLAINSBORO NJ UNDER MVT VAN KAMPEN MERRITT MUNICIPAL INCOME TRUST UNDER VKV AMERICAN HEALTHCARE MANAGEMENT INC KING OF PRUSSIA PA A HEALTH CARE SERVICES COMPANY UNDER AHI IT PREVIOUSLY TRADED OVER THE COUNTER THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NATIONAL MARKET LISTINGS EDUNETICS LTD HERZLIYA ISRAEL A COMPUTER NETWORKBASED SOFTWARE CONCERN THAT DEVELOPS SYSTEMS FOR TEACHING SCIENCE AND MATHEMATICS AT THE MIDDLE AND HIGH SCHOOL LEVELS UNDER EDNTF SAFETY 1ST INC CHESTNUT HILL MASS A CHILD SAFETY PRODUCTS COMPANY UNDER SAFT SANMINA CO SAN JOSE CALIF A MAKER OF EQUIPMENT FOR HIGHDENSITY CIRCUIT BOARDS UNDER SANM PAUL HARRIS STORES INC INDIANAPOLIS A SPECIALTY RETAILER OF WOMEN'S ATTIRE MOVES FROM THE PINK SHEETS TO THE NATIONAL MARKET SYSTEM AND WILL TRADE UNDER PAUH THE AMERICAN STOCK EXCHANGE SAID IT BEGAN TRADING IN STYLES ON VIDEO INC CANOGA PARK CALIF A DEVELOPER AND MARKETER OF A BEAUTY COMPUTER IMAGING SYSTEM UNDER SOV THE AMEX ALSO BEGAN TRADING OPTIONS ON POLICY MANAGEMENT SYSTEMS CORP BLYTHEWOOD SC AND BEGAN TRADING LONGTERM EQUITY ANTICIPATION SECURITIES OR LEAPS ON ITS 15STOCK PHARMACUETICAL INDEX LEAPS ARE LONGTERM OPTIONS 9304190002 930419 OKASAN SECURITIES CO DEMOTES AN OFFICIAL CUTS PAY OF 2 OTHERS SPECIAL TO THE WALL STREET JOURNAL TOKYO OKASAN SECURITIES CO A MAJOR JAPANESE BROKERAGE FIRM SAID IT DEMOTED A MANAGING DIRECTOR AND CUT THE SALARIES OF TWO OTHER EXECUTIVES BECAUSE OF THE COMPANY'S LINKS TO A FALLEN POLITICAL KINGMAKER MEANWHILE THE SECURITIES DEALERS ASSOCIATION OF JAPAN SAID IT SLAPPED A FINE OF 1 MILLION YEN 8838 ON OKASAN FOR ITS FAILURE TO ABIDE BY BROKERAGEINDUSTRY RULES ON FAIR TRANSACTIONS AT A SPECIAL BOARD MEETING FRIDAY DIRECTORS DEMOTED KAGETOSHI OKA TO AN EXECUTIVE WITH NO REPRESENTATIVE STATUS SAID AN OKASAN OFFICIAL MR OKA TESTIFIED BEFORE A PARLIAMENTARY SESSION APRIL 1 THAT HIS COMPANY BOUGHT 2 BILLION YEN OF BONDS ON TWO OCCASIONS AT THE REQUEST OF THE WIFE OF FORMER DEPUTY PRIME MINISTER SHIN KANEMARU MR KANEMARU CHARGED WITH EVADING TAXES ON 185 BILLION YEN IN QUESTIONABLE INCOME WAS FREED ON 300 MILLIONYEN BAIL EARLIER THIS MONTH AFTER THREE WEEKS OF INTERROGATION BY PROSECUTORS OKASAN WAS UNDER SUSPICION THAT IT HAD HELPED MR KANEMARU AMASS HIS FORTUNE THERE WERE NO ILLEGALITIES OF ANY KIND INVOLVED IN OUR TRADING WITH KANEMARU BUT HE MR OKA LOST THE COMPANY'S TRUST THE OFFICIAL SAID EXPLAINING FRIDAY'S DECISION BY THE BOARD THE OFFICIAL WHO SPOKE ON CONDITION OF ANONYMITY SAID THE BOARD DECIDED TO CUT THE SALARY OF OKASAN PRESIDENT SEIICHI KATO BY 10 FOR A THREEMONTH PERIOD AND THAT OF MASAO IMANAKA AN EXECUTIVE VICE PRESIDENT BY 10 FOR ONE MONTH EARLIER FRIDAY THE FINANCE MINISTRY GAVE A WRITTEN CAUTION TO MR KATO OVER THE CASE AND URGED THE BROKERAGE FIRM TO TAKE MEASURES TO PREVENT A RECURRENCE OF A SIMILAR INCIDENT THE OFFICIAL SAID 9304190001 930419 WHO'S NEWS MEDICAL IMAGING SAYS ITS PRESIDENT LEFT IN DOWNSIZING MOVE SAN DIEGO MICHAEL L JEUB 50 YEARS OLD LEFT AS PRESIDENT AND CHIEF FINANCIAL OFFICER OF MEDICAL IMAGING CENTERS OF AMERICA INC AS PART OF A DOWNSIZING OF OPERATIONS THE TROUBLED MEDICAL SERVICES COMPANY SAID ANTONE J LAZOS THE COMPANY'S 50YEAROLD CHAIRMAN AND CHIEF EXECUTIVE IS TAKING ON THE ADDITIONAL POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE IMMEDIATELY DENISE L SUNSERI 34 WAS NAMED CHIEF FINANCIAL OFFICER ROBERT S MUEHLBERG 39 WAS NAMED SENIOR VICE PRESIDENT OF WEST DIVISION OPERATIONS THE SHUFFLE CAME AS MEDICAL IMAGING REPORTED A FOURTHQUARTER NET LOSS OF 153 MILLION OR 130 A SHARE COMPARED WITH A NET LOSS OF 43 MILLION OR 38 CENTS A SHARE IN THE YEAREARLIER QUARTER THE 1992 QUARTER INCLUDED A ONETIME CHARGE OF 10 MILLION FOR THE ESTABLISHMENT OF RESERVES TO REFLECT UNCERTAINTY REGARDING THE REALIZATION OF CERTAIN RECEIVABLES AND OTHER ASSETS REVENUE INCREASED NEARLY 14 TO 213 MILLION FROM 187 MILLION THE COMPANY ANNOUNCED A RESTRUCTURING PLAN THAT INCLUDED CLOSING ITS DIVISION OFFICE IN ILLINOIS AND A SUBSTANTIAL REDUCTION IN ADMINISTRATIVE EMPLOYEES AT ALL LOCATIONS IT INSTITUTED A 10 CUT IN SALARY FOR ALL UPPERLEVEL MANAGERS AND IMPOSED A WAGE FREEZE FOR ALL EMPLOYEES IT ALSO RESTRUCTURED ITS BANK OBLIGATIONS CERTAIN LEASES AND REACHED AGREEMENT WITH ITS CONVERTIBLE DEBENTURE HOLDERS TO REDUCE THE INTEREST RATE TO 6 FROM 12 ON THE DEBENTURES FOR THE YEAR MEDICAL IMAGING HAD A NET LOSS OF 203 MILLION OR 172 A SHARE COMPARED WITH A NET LOSS OF 104 MILLION OR 90 CENTS A SHARE IN 1991 REVENUE WAS 846 MILLION DOWN 4 FROM 881 MILLION A YEAR EARLIER 9304190154 930319 ENVIRONMENTALISTS AGAINST GATT BY JAGDISH BHAGWATI SOME OF THE FLINTIEST OPPOSITION TO FREE TRADE AT THE MOMENT COMES FROM ENVIRONMENTALISTS THEY ARE PRESSING FOR A WATCHDOG PANEL ARMED WITH PUNITIVE POWERS TO PROTECT THE NORTH AMERICAN FREE TRADE AGREEMENT FROM ENVIRONMENTAL WRONGDOING THEY ARE ALSO SHOWING EXTRAORDINARY HOSTILITY TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THREATEN TO DERAIL ITS LATEST NEGOTIATIONS WITH EXCESSIVE AND FOOLISH DEMANDS THE ENVIRONMENTALISTS' DISENCHANTMENT WITH GATT AND HENCE WITH THE URUGUAY ROUND THAT SEEKS TO EXTEND AND STRENGTHEN IT DATES FROM 1991 WHEN THE US LOST THE DOLPHINTUNA CASE BROUGHT BY MEXICO BEFORE A GATT DISPUTE SETTLEMENT PANEL THE PANEL RULED THAT A GATT MEMBER'S TRADING RIGHTS COULD NOT BE SUSPENDED SIMPLY BECAUSE ONE COUNTRY OBJECTED TO THE PROCESS BY WHICH ANOTHER PRODUCED ITS PRODUCTS AT THE TIME THE US WAS EMBARGOING MEXICO'S TUNA PRODUCTS BECAUSE MEXICO USED PURSESEINE NETS THAT CAUGHT DOLPHINS AS WELL THIS EMBARGO WAS DISALLOWED THE ENVIRONMENTALISTS' FRUSTRATION WITH GATT TURNED SWIFTLY TO ANGER IT WAS DENOUNCED AS GATTZILLA EVOCATIVE OF THE JAPANESE MONSTER GODZILLA A BLITZKRIEG OF CONDEMNATORY ADS AND ANTIGATT PROPAGANDA FOLLOWED THREATENING RETRIBUTION AND YET THE ANGER IS MISPLACED THE DOLPHINTUNA DECISION WAS ENTIRELY SENSIBLE IF A NATION'S TRADING RIGHTS CAN BE SUSPENDED SIMPLY BECAUSE IT REFUSES TO ACCEPT ANOTHER NATION'S IDIOSYNCRATIC VALUES EVERYONE COULD INSIST ON MORALITYDRIVEN TRADE RESTRICTIONS AND THE WHOLE INTERNATIONAL TRADING SYSTEM WOULD HEAD DOWN A SLIPPERY SLOPE THUS IF WE HAVE OUR DOLPHINS THE INDIANS HAVE THEIR SACRED COWS ANIMAL RIGHTS ACTIVISTS MIGHT OBJECT TO THE CRUELTY THAT FISH ENDURE AS THEY ARE CAUGHT EVEN IN APPROVED NETS ENVIRONMENTALISTS ARE HOSTILE TO GATT FOR ANOTHER REASON GATT ESTABLISHES PROCEDURES FOR EXAMINING WHETHER ENVIRONMENTAL REGULATIONS ARE REALLY PROTECTIONISM IN DISGUISE ECONOMISTS HAVE LONG RECOGNIZED THE PROBLEM OF GETTING AT THE TRUE INTENTION BEHIND REGULATIONS A CURRENTDAY EXAMPLE IS ONTARIO'S 10 TAX ON BEER CANS BUT NOT BOTTLES THE GROUNDS FOR SUCH A LAW ARE SUPPOSEDLY ENVIRONMENTAL BUT US AUTHORITIES RIGHTLY NOTE THAT IT DISCRIMINATES AGAINST FOREIGN BEER SUPPLIERS WHO UNLIKE LOCAL RIVALS PREDOMINANTLY USE CANS TELLINGLY THE USE OF CANS FOR SOUPS AND JUICES WHERE ONTARIO PRODUCERS WOULD HAVE BEEN AFFECTED WAS NOT PROSCRIBED AMONG THE MOST PERNICIOUS OF THE ENVIRONMENTALISTS' RECENT DEMANDS NOW RAPIDLY ACQUIRING CONVERTS ON CAPITOL HILL IS FOR DUTIES AGAINST FOREIGN NATIONS FOR SOCIAL DUMPING THIS SUPPOSED EVIL IS SAID TO HAPPEN WHEN A FOREIGN COUNTRY HAS LESS RIGOROUS ENVIRONMENTAL REGULATION IN A PARTICULAR INDUSTRY THAN DOES THE US AND YET EXPORTS PRODUCTS HERE ENVIRONMENTALISTS ARGUE THAT THIS IS TANTAMOUNT TO DUMPING EXPORTS AT LESS THAN FULL COST SINCE THE FOREIGN INDUSTRY'S TRUE COSTS SHOULD INCLUDE BUT DO NOT THE SAME REGULATORY COSTS AS THOSE FACED BY US INDUSTRIES SUCH OBJECTIONS ALONG WITH DEMANDS FOR SOCIAL DUMPING LEGISLATION ARE ACTS OF FOLLY THEY APPEAR TO ADDRESS LEGITIMATE ENVIRONMENTAL CONCERNS BUT IN FACT ARE ILLEGITIMATE DEMANDS THAT WILL HARM TRADE ONE SUSPECTS THAT A PROTECTIONIST AGENDA LIES BEHIND THE SOCIAL DUMPING CRUSADE AS GATT INVESTIGATORS MIGHT WELL DISCOVER IT IS NOW WELL DOCUMENTED THAT ANTIDUMPING LAWS HAVE BEEN SYSTEMATICALLY MISUSED BY PROTECTIONISTS TO HARASS FOREIGN RIVALS AND TO FORCE THEM INTO ACCEPTING VOLUNTARY EXPORT RESTRAINTS AS THE LESSER EVIL THUS THE OPENING UP OF YET ANOTHER OPPORTUNITY TO CHARGE FOREIGN COMPETITORS WITH LESSTHANCOST PRICING IS NOT EXACTLY A CAUSE FOR CELEBRATION UNLIKE NORMAL ANTIDUMPING CASES THE CHARGE OF SOCIAL DUMPING ACCUSES OTHERS NOT WITH DOING SOMETHING BUT WITH NOT DOING SOMETHING THE SOCALLED SUBSIDY TO A FOREIGN COMPETITOR IS NOT GIVEN BUT ONLY IMPLIED ACCORDING TO SEN DAVID BOREN D OKLA WHO SUPPORTED THE FAILED 1991 INTERNATIONAL POLLUTION DEFERENCE ACT THE SUBSIDY WOULD BE CALCULATED AS THE COST WHICH WOULD HAVE TO BE INCURRED BY THE MANUFACTURER OR PRODUCER OF THE FOREIGN ARTICLES OF MERCHANDISE TO COMPLY WITH ENVIRONMENTAL STANDARDS IMPOSED ON US PRODUCERS OF THE SAME CLASS OF MERCHANDISE YOU HAVE TO BE NAIVE TO THINK THE ENVIRONMENTAL PROTECTION AGENCY CHARGED WITH CALCULATING THIS COST WOULD DO ANYTHING EXCEPT COME UP WITH THE ANSWER IT WANTS PUSHED BY POLITICAL FORCES IN SHORT THE ESTIMATING PROCEDURE WOULD BE ARBITRARY THE SAME PROBLEM AROSE WHEN THE US HAD TO ASSESS DUMPING BY THE FORMER COMMUNIST COUNTRIES WHICH HAD NO USABLE PRICE AND COST DATA IN THAT CASE WE SIMPLY INVENTED SOME THE BEST EXAMPLE OF THE ABSURDITY OF THE PROCEDURE AND ITS SUSCEPTIBILITY TO POLITICAL OUTCOMES WAS THE CASE OF POLAND'S EXPORTING GOLF CARTS TO THE US THE POLES WERE CHARGED WITH DUMPING ALTHOUGH SINCE THEY DID NOT EVEN PLAY GOLF THERE WERE NO DOMESTIC PRICES GOOD OR BAD TO COMPARE WITH WHAT THEY CHARGED IN OUR MARKETS THE WITTICISM WAS THAT THE POLES HAD PUT THE CART BEFORE THE COURSE A SEARCH GUIDED BY THE 1974 TRADE ACT HAD TO BE UNDERTAKEN FOR COMPARABLE COUNTRIES WHOSE COSTS COULD BE USED TO RECONSTRUCT POLISH COSTS WITH SPAIN CHOSEN AS THE IDEAL CANDIDATE BUT THE CHIEF OBJECTION TO THE SOCIAL DUMPING IDEA IS SIMPLY THAT IT FLIES IN THE FACE OF ECONOMIC LOGIC GIVEN THE SAME PREFERENCE FOR A BETTER ENVIRONMENT RELATIVE TO INCOME EACH COUNTRY WILL MAKE SEVERAL ENVIRONMENTAL CHOICES THAT REFLECT ITS OWN PRIORITIES THESE IN TURN WILL REFLECT ITS OWN EVALUATION OF THE COSTS OF DIFFERENT TYPES OF POLLUTION CONTROL AND THEIR BENEFITS THUS IF A CHEMICAL PLANT IN BRAZIL IS DISCHARGING POLLUTANTS INTO A LAKE THAT NO ONE DRINKS FROM POLLUTION ABATEMENT THERE IS OF A MUCH LOWER PRIORITY THAN FOR SAY A PAPER MILL WHOSE DISCHARGE AFFECTS A LAKE THAT SUPPLIES DRINKING WATER THUS BRAZIL WILL PROPERLY HAVE POLLUTIONCONTROL IN THE PAPER INSTEAD OF THE CHEMICAL INDUSTRY BUT THE EFFECTS OF VARIOUS KINDS OF POLLUTION AND THE EFFORTS AT ITS CONTROL MAY BE VERY DIFFERENT IN THE US IT IS ONLY IN RARE CASES THAT ENVIRONMENTAL REGULATIONS WITHIN THE SAME INDUSTRY WILL HARMONIZE ACROSS DIFFERENT COUNTRIES BY ASSUMING OTHERWISE THE PROPONENTS OF SOCIAL DUMPING LEGISLATION INSULT OUR GOOD SENSE WHILE OPENING THE FLOODGATES YET WIDER TO PROTECTIONISM SEE RELATED LETTERS LETTERS TO THE EDITOR ENVIRONMENTAL MORALIST DEHUMANIZE ECONOMIST WSJ APRIL 2 1993 SEE RELATED LETTER LETTERS TO THE EDITOR INTERNATIONAL TRADE AND THE COLOR GREEN WSJ APRIL 16 1993 9303190107 9304060010 9304190142 930312 THE WALL STREET JOURNAL / NBC NEWS POLL WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON COUNTS ON PUBLIC SUPPORT TO SELL HIS ECONOMIC PLAN TO CONGRESS HIS ADVISERS THINK BACKING FOR THE PLAN IS HOLDING UP SURPRISINGLY WELL IMPROVING CHANCES FOR PASSAGE A WALL STREET JOURNAL/NBC NEWS POLL SHOWS STRONG SUPPORT EVEN THOUGH 81 OF AMERICANS THINK THEIR TAXES WILL RISE TO TRIM THE DEFICIT SOME 57 BELIEVE CLINTON FACES TOUGHER PROBLEMS THAN BUSH DID AT THE START OF HIS TERM BUT 43 THINK THE NATION IS ON THE RIGHT TRACK ONE CLINTON STRATEGY WILL BE TO TALK UP HIS ECONOMIC PACKAGE'S INVESTMENTS IN JOBS AND TRAINING HE WILL PRESS THE ISSUES NEXT WEEK WITH CONGRESSIONAL LEADERS CONTINUED PUBLIC CONCERN ABOUT UNEMPLOYMENT WILL MAKE IT MUCH EASIER FOR THE CLINTON PEOPLE TO SAY PASS MY PACKAGE' SAY WSJ/NBC POLLSTERS PETER HART AND ROBERT TEETER SOME 60 OF THE PUBLIC THINK CLINTON IS A DIFFERENT KIND OF DEMOCRAT AND ONLY 29 THINK HE IS A TAXANDSPEND BIGGOVERNMENT DEMOCRAT CLINTON HOLDS OFF ON DISCLOSING BUDGET PRIORITIES FOR NOW HE DOESN'T WANT TO TIP HIS HAND UNTIL CONGRESSIONAL SPENDING COMMITTEES ACT ON HIS ECONOMIC PLAN TOP ADVISERS SAY HE WILL FIGHT TO PRESERVE SPENDING INCREASES FOR TECHNOLOGY EDUCATION AND TRAINING BUT THEY SAY HE WILL TOLERATE CUTS IN INFRASTRUCTURE SPENDING AND IF NECESSARY DROP HIS LIMITED INVESTMENTTAX CREDIT CLINTON BRIDLES AT REPORTS THAT HIS TAX BREAK TO HELP STARTUP COMPANIES ISN'T BEING WELL RECEIVED IN SILICON VALLEY AND ORDERS AIDES TO FIX THE PROBLEM IN THE NEW POLL THREEQUARTERS OF VOTERS FAVOR HIS PLAN'S HIGHER TAXES ON THE WEALTHY AND 75 BACK MORE SPENDING ON HEAD START BUT ONLY 42 SUPPORT MORE SPENDING ON TRANSPORTATION AND COMMUNICATIONS A FULL 80 FAVOR CUTS IN SCIENCE PROGRAMS SUCH AS THE SPACE STATION REPUBLICANS GROPE FOR WAYS TO COUNTER CLINTON'S ECONOMIC PROPOSALS BY AN OVERWHELMING 62 TO 30 THE PUBLIC PREFERS CLINTON'S ECONOMIC PLAN TO A GOP PROPOSAL THAT WOULDN'T RAISE TAXES SOME REPUBLICAN MODERATES SUCH AS WISCONSIN REP GUNDERSON WANT TO CONCEDE THE FIGHT OVER TAXING THE WEALTHY INSTEAD THEY WOULD TARGET CLINTON'S ENERGY TAX WHICH HITS THE MIDDLE CLASS AND IS OPPOSED BY TWOTHIRDS OF THOSE IN THE WSJ/NBC SURVEY SEN DOMENICI THE BUDGET COMMITTEE'S RANKING REPUBLICAN TRIES TO RALLY COLLEAGUES AROUND HIS ALTERNATIVE BUDGET PLAN BUT CAUTIOUS GOP LEADERS AREN'T SURE THAT PUSHING A CONTROVERSIAL ECONOMIC ALTERNATIVE IS WORTH THE POLITICAL RISK IN THE NEW POLL PUBLIC CONFIDENCE THAT THE PRESIDENT AND CONGRESS CAN WORK TOGETHER FALLS TO 47 FROM 61 IN JANUARY BY 2 TO 1 THE PUBLIC THINKS THE DEMOCRATS WOULD DO BETTER THAN THE GOP IN HANDLING THE ECONOMY AND THE DEFICIT MORE GOP BAD NEWS THE PUBLIC ALSO FAVORS DEMOCRATS OVER REPUBLICANS BY 57 TO 9 TO RESOLVE HEALTHCARE PROBLEMS AND BY 36 TO 13 THEY THINK DEMOCRATS CAN BETTER STAND UP TO SPECIAL INTERESTS TO SHOW THEY CAN FACE PRESSURES ON BUDGET CUTS HOUSE REPUBLICANS HAD CONNECTICUT REP SHAYS ANNOUNCE THEIR CALL TO CUT THE SEAWOLF SUBMARINE PROGRAM BASED IN HIS STATE PEROT'S POPULARITY RISES WITH 47 VIEWING HIM POSITIVELY UP FROM 35 IN DECEMBER ON A MARCH 21 TELECAST HE WILL CONDUCT A PHONEIN REFERENDUM ON GOVERNMENT REFORM YES ANSWERS SEEM CERTAIN TO PREVAIL WITH QUESTIONS LIKE SHOULD WE ELIMINATE FOREIGN LOBBYISTS COMPLETELY NO LOOPHOLES AND MAKE IT A CRIMINAL OFFENSE CONFIDENCE DROPS ON THE RECOVERY ONLY 39 OF THOSE SURVEYED SAY THE ECONOMY WILL GET BETTER IN THE NEXT YEAR DOWN FROM 50 IN JANUARY AS FAR AS AMERICANS ARE CONCERNED THE RECESSION IS STILL WITH US SAYS POLLSTER HART FORTYTHREE PERCENT SAY THE ECONOMY WILL STAY ABOUT THE SAME SICK IMAGES PLAGUE PILLARS OF THE NATION'S HEALTHCARE ESTABLISHMENT AS DEBATE OVER REFORM HEATS UP IN THE NEW POLL MORE THAN 60 OF THE PUBLIC HAVE NEGATIVE VIEWS ABOUT HEALTH INSURANCE COMPANIES AND ONLY 16 HAVE POSITIVE FEELINGS A FULL 50 FEEL NEGATIVELY TOWARD PHARMACEUTICAL FIRMS WHILE ONLY 18 ARE POSITIVE CLINTON FACES PUBLICRELATIONS CHALLENGES ON FOREIGN POLICY IN BOSNIA SOME US OFFICIALS BELIEVE THAT WARRING FACTIONS COULD SIGN A PEACE ACCORD VERY SOON IN THE POLL A MAJORITY OF AMERICANS OPPOSE US GROUND TROOPS IN BOSNIA TO ENFORCE PEACE BUT EUROPEAN ALLIES WILL INSIST THE US HELP PROVIDE GROUND TROOPS IN A PEACEKEEPING FORCE HELPING RUSSIA IN AN EFFORT TO SHORE UP YELTSIN ALSO WILL BE A HARD SELL EVEN WITH NIXON'S PUBLIC BACKING IN THE POLL AN OVERWHELMING 62 OF AMERICANS OPPOSE INCREASING US AID TO RUSSIA CLINTON WILL HAVE TO DO SOME ARMTWISTING IN CONGRESS TO WIN APPROVAL OF A MODEST AID INCREASE ANOTHER POTENTIAL PROBLEM AN INTERNATIONAL TERRORIST LINK IF PROVED TO THE WORLD TRADE CENTER BOMBING COULD CREATE A BACKLASH MAKING IT HARDER TO ARGUE FOR US INVOLVEMENT OVERSEAS MINOR MEMOS IN THE POLL THE PUBLIC IS EVENLY SPLIT ON WHETHER TO ALLOW DISTRIBUTION IN THE US OF EUROPEAN ABORTION DRUG RU486 SACRIFICE MORE THAN 60 OF AMERICANS WITH ANNUAL HOUSEHOLD INCOMES ABOVE 75000 SUPPORT CLINTON'S PROPOSAL TO INCREASE THE TOP TAX RATE FOR FAMILIES THAT EARN OVER 140000 A YEAR SEE RELATED LETTER IF THEY MAKE MORE THAN US TAX 'EM WSJ APRIL 19 1993 9303120059 9304190013 930326 LETTERS TO THE EDITOR SCHOOL VOUCHER PROGRAM FOR FAILURES YOUR MARCH 8 EDITORIAL REALWORLD CHOICE DID NOT PORTRAY MY VIEWS ON VOUCHERS ACCURATELY I'M STILL OPPOSED TO THEM WHAT I SAID WAS THAT WE OUGHT TO PROVIDE THE OPPORTUNITY FOR PRIVATE SCHOOLS TO EDUCATE THE YOUNGSTERS WHO ARE TOTAL FAILURES IN PUBLIC SCHOOLS THE ONES WHO CAN'T READ OR WRITE ARE TRUANT AND DISPLAY ANTISOCIAL BEHAVIOR THE PUBLIC SCHOOLS AREN'T EDUCATING THEM AND THEY KEEP OTHER STUDENTS FROM LEARNING LET THE PUBLIC SCHOOLS CHOOSE THE STUDENTS WHO SHOULD RECEIVE PRIVATE SCHOOL VOUCHERS YOU CAN BET THEY WOULD PICK THE RIGHT CHILDREN LET'S SEND THE ONES MOST IN NEED OF HELP TO PRIVATE SCHOOLS AND PAY THE FULL COST OF THEIR EDUCATION THIS IS THE ONLY VOUCHER PROPOSAL I FIND DEFENSIBLE MOST VOUCHER PROPONENTS NOW SAY THEY WANT TO SAVE POOR CHILDREN BUT NOT ALL POOR CHILDREN ARE LOW ACHIEVERS AND DISCIPLINE PROBLEMS THE CHILDREN WITH THE LOWEST ACHIEVEMENT LEVELS AND HIGHEST BEHAVIOR PROBLEMS ARE THE ONES WHO NEED A SECOND CHANCE PRIVATE SCHOOLS CLAIM THEY CAN HELP THESE CHILDREN LET'S SEE WHAT THEY CAN DO SOME MAY DETECT A NOTE OF SARCASM HERE BUT THEY CAN CALL MY BLUFF BY EMBRACING THIS IDEA YOUR EDITORIAL INDICATES THIS IS A RECENT VIEW OF MINE AND AN OPTIMISTIC SIGN THAT I HAVE BECOME PROVOUCHER BUT I FIRST WROTE ABOUT IT IN 1981 BORROWING IT FROM BARBARA LERNER'S 1980 BOOK MINIMUM COMPETENCE MAXIMUM CHOICE AND I REITERATED IT IN 1991 AND RECENTLY IN A DEBATE THE IDEA HAS BEEN AROUND FOR 13 YEARS BUT NO ONE'S ADOPTED IT THE REASON IS OBVIOUS PRIVATE SCHOOLS DON'T WANT DEEPLY TROUBLED FAILING CHILDREN THE WORD CHOICE IS MISLEADING PARENTS DON'T DO THE CHOOSING THE PRIVATE SCHOOLS DO PRIVATE SCHOOLS CAN TAKE THE CHILDREN THEY WANT AND THEY CAN EXPEL THEIR MISTAKES THEY SET THEIR OWN ADMISSIONS POLICIES AND THE PUBLIC CAN'T DO ANYTHING ABOUT THEM THE THEORY IS THAT CHOICE WILL ENCOURAGE COMPETITION AND IMPROVE BOTH PUBLIC AND PRIVATE SCHOOLS BUT SINCE PUBLIC SCHOOLS ARE HEAVILY REGULATED AND PRIVATE SCHOOLS ARE NOT PUBLIC AND PRIVATE SCHOOLS WOULD NOT BE COMPETING ON THE SAME TERMS IT WOULD BE SOMEWHAT PERVERSE FOR GOVERNMENTS TO IMPOSE REGULATIONS ON PUBLIC SCHOOLS BECAUSE THEY BELIEVE IT TO BE IN THE PUBLIC INTEREST AND THEN TO GIVE PUBLIC MONEY TO PARENTS WHO WANT TO ESCAPE UNPOPULAR REGULATIONS OTHER INDUSTRIALIZED COUNTRIES DO NOT HAVE THIS KIND OF COMPETITION IN EDUCATION BUT THEY HAVE VERY GOOD PUBLIC SCHOOLS WHY NOT HAVE AMERICAN SCHOOLS ADOPT SOME OF THE PRACTICES WE KNOW WORK WELL IN ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT COUNTRIES FOR EXAMPLE SETTING NATIONAL EDUCATION STANDARDS CREATING CREDIBLE ASSESSMENTS TO MEASURE THEIR ATTAINMENT AND MAKING IT CLEAR TO STUDENTS THAT BEHAVIOR HAS CONSEQUENCES STUDENTS IN OTHER COUNTRIES LEARN MUCH MORE IN SCHOOL THAN OUR STUDENTS DO BECAUSE THEY WORK HARDER WHY BECAUSE STUDENTS IN THESE COUNTRIES KNOW THAT THEY HAVE TO WORK HARD TO GET WHAT THEY WANT A JOB OR ADMISSION TO COLLEGE AS LONG AS OUR STUDENTS KNOW THAT EMPLOYERS DON'T ASK THEM FOR THEIR GRADES OR TRANSCRIPTS AND THAT 90 OF OUR COLLEGES WILL ACCEPT THEM IF THEY ARE BREATHING AND THEIR PARENTS CAN WRITE A CHECK THEY WON'T WORK HARD IF EMPLOYERS AND COLLEGES HELD STUDENTS TO HIGH STANDARDS THEY WOULD HAVE AN INCENTIVE TO STUDY BECAUSE THE FAILURE TO DO SO WOULD HAVE BAD CONSEQUENCES JAPAN AND GERMANY DO THIS IN COOPERATION WITH BUSINESS AND HIGHER EDUCATION AND THEY OUTSHINE US IN STUDENT ACHIEVEMENT AND IN THE MARKETPLACE A VOUCHER PROGRAM WOULD CERTAINLY GET SCHOOLS IN THE BUSINESS OF ATTRACTING STUDENTS BUT ATTRACTING THEM IS NOT THE SAME AS EDUCATING THEM WE OUGHT TO PROVIDE INCENTIVES FOR THE LATTER BUT NOT FOR THE FORMER SEE RELATED LETTER LETTERS TO THE EDITOR FORGET REGULATIONS WE WANT EDUCATION WSJ APRIL 16 1993 9303260025 9304160188 930416 DANDELIONS CAN RUIN LAWNS BUT THEY'RE GREAT FOR THE SOIL STUDY OF BIODYNAMIC' FARMING FINDS BENEFIT IN MIXING IN PLANTS SILICA COW MANURE BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL FARMERS WHO USE DANDELIONS AGED IN A COW MEMBRANE TO IMPROVE SOIL QUALITY MAY BE ON TO SOMETHING AFTER ALL THAT ODDBALL COMBINATION ONE OF EIGHT SPECIFIC PLANT AND ANIMAL PREPARATIONS USED BY BIODYNAMIC FARMERS TO IMPROVE SOIL QUALITY MAY FINALLY HAVE RECEIVED A SMIDGEN OF SCIENTIFIC CREDIBILITY ACCORDING TO A STUDY REPORTED IN TODAY'S SCIENCE MAGAZINE BIODYNAMIC FARMERS LIKE ORGANIC FARMERS DISDAIN THE USE OF PESTICIDES AND CHEMICAL FERTILIZERS AND PREFER TO USE NATURAL COMPOSTS AND MANURES BUT BIODYNAMIC FARMERS GO ONE STEP FURTHER THEY ADD EIGHT PREPARATIONS TO THE SOIL MADE FROM COW MANURE SILICA AND VARIOUS PLANTS THEY BELIEVE THESE SUBSTANCES IMPROVE THE HEALTH AND SPIRITUALITY OF PLANTS FARMERS AND CONSUMERS ALIKE ALTHOUGH BIODYNAMIC FARMING IS PRACTICED IN THE US CANADA GERMANY AUSTRALIA AND OTHER COUNTRIES NO ONE HAS CONDUCTED A LARGESCALE STUDY OF THE METHOD NOW A STUDY HAS CONCLUDED THAT SUCH METHODS PRODUCE BETTER SOIL QUALITY THAN COMPARABLE CONVENTIONAL FARMING AND CAN BE JUST AS PROFITABLE ON A PERHECTARE BASIS THE STUDY CARRIED OUT ON THE NORTH ISLAND OF NEW ZEALAND COMPARED THE SOIL PROPERTIES OF EIGHT ADJACENT PAIRS OF CONVENTIONAL AND BIODYNAMIC FARMS OVER A FOURYEAR PERIOD ACCORDING TO THE STUDY SOIL ON THE BIODYNAMIC FARMS WHICH HAD BEEN TREATED WITH COMPOST AND THE SPECIAL PREPARATIONS HAD SIGNIFICANTLY HIGHER ORGANIC MATTER AND GREATER MICROBIAL ACTIVITY THAN SOIL ON THE CONVENTIONAL FARMS TOPSOIL WAS ALSO FOUND TO BE SIGNIFICANTLY THICKER ON TWO BIODYNAMIC FARMS THAN ON THEIR CONVENTIONAL NEIGHBORS AND MOST OF THE BIODYNAMICALLY FARMED SOILS BROKE DOWN MORE READILY AND PROVIDED BETTER AERATION AND DRAINAGE FOR CROP OR GRASS GROWTH HOWEVER JOHN P REGANOLD A SOIL SCIENTIST AT WASHINGTON STATE UNIVERSITY AND THE LEAD RESEARCHER ON THE STUDY CONCEDES THAT HE CANNOT DRAW ANY CONCLUSIONS ABOUT THE EFFECT OF THE EIGHT PREPARATIONS WHICH DISTINGUISH BIODYNAMIC FARMING FROM ORGANIC METHODS I CAN'T SAY THAT THE REASON WE HAVE HIGHER MICROBIAL ACTIVITY AND HIGHER ORGANIC MATTER IS BECAUSE OF THE PREPARATIONS IT COULD BE DUE TO THE COMPOST BIODYNAMIC FARMING WAS BORN IN 1924 IN POLAND AFTER AUSTRIAN PHILOSOPHER AND SCIENTIST RUDOLF STEINER CAME UP WITH THE PREPARATIONS AS A WAY TO ENHANCE THE POOR QUALITY OF FARMERS' OVERWORKED SOIL IN ADDITION TO THE PREPARATIONS SUCH FARMERS PLANT CROPS BASED ON CERTAIN PLANETARY ALIGNMENTS BECAUSE THEY BELIEVE THEY CAN TAP INTO A BENEFICIAL LIFE ENERGY OR FORCE THAT IS COMMON TO ALL CREATURES PROF REGANOLD SAYS ONE PREPARATION CONSISTS OF YARROW BLOSSOMS THAT HAVE LAIN ALL WINTER IN A STAG BLADDER ANOTHER CONSISTS OF COW HORNS STUFFED WITH COW MANURE AND SIMILARLY BURIED SOME FARMERS MAKE THE PREPARATIONS THEMSELVES WHILE OTHERS CAN ORDER THEM FROM CERTIFIED BIODYNAMIC PREPARERS THROUGH THE MAIL IT'S FAR OUT PROF REGANOLD CONCEDES BUT THE PREPARATIONS MAY BE ADDING BENEFICIAL MICROORGANISMS TO THE SOIL HE POINTS OUT THAT THREE OF THE BIODYNAMIC FARMS THAT USED THE PREPARATIONS BUT DID NOT USE COMPOST SHOWED ENHANCED SOIL QUALITY COMPARED WITH ITS CONVENTIONAL NEIGHBORS THAT USED NEITHER COMPOST NOR THE PREPARATIONS PROF STEINER AND HIS COLLEAGUES ALSO FOUND THAT MOST OF THE PRODUCTS FROM THE 16 BIODYNAMIC FARMS IN NEW ZEALAND INCLUDING VEGETABLES FRUITS AND DAIRY PRODUCTS WERE PRICED 25 HIGHER THAN THEIR CONVENTIONAL COUNTERPARTS I WASN'T THAT SURPRISED ABOUT THE IMPROVED SOIL QUALITY HE CONCLUDES BUT I WAS SURPRISED THAT BIODYNAMIC FARMERS WERE DOING JUST AS WELL AS OTHER FARMERS ON A PROFITABILITY LEVEL AND I'M INTRIGUED BY THE PREPARATIONS 9304160187 930416 REVIEW & OUTLOOK EDITORIAL JACQUES ANTOINETTE THE INEFFABLE JACQUES ATTALI ONCE COMPLAINED OF OUR CRITICISMS OF HIS DEVELOPMENT BANKING VENTURE BY SAYING THAT WE ARE PREJUDICED AGAINST FRENCHMEN AND SOCIALISTS WE IN FACT ADMIRE THE FRENCH AND PARTICULARLY SO NOW THAT THEY HAVE COME TO SHARE MANY OF OUR PREJUDICES AGAINST SOCIALISTS OR SO IT APPEARED WHEN LAST MONTH'S PARLIAMENTARY ELECTION RETURNS WERE IN AS FOR MR ATTALI IT SEEMS THAT THIS WEEK ALMOST NO ONE HAS A GOOD WORD TO SAY ABOUT HIM AND HIS LONDONBASED EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT EBRD HEAVY MORTAR FIRE IS RAINING DOWN FROM THE BRITISH PRESS AND HE SOON MAY HAVE AN UNFRIENDLY VISIT FROM BRITISH TREASURY HEAVIES CHARGED WITH MINDING BRITAIN'S STAKE IN HIS VENTURE LABORITES IN COMMONS ARE DEMANDING THAT CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT TAKE A HARD LOOK WHAT CAN WE SAY OTHER THAN WHAT WE HAVE SAID BEFORE WE THINK IT WAS UNFORTUNATE THAT THIS CHARMING AND HIGHLY CREATIVE MAN WAS HANDED SO MUCH MONEY BY THE TAXPAYERS OF THE WORLD'S WEALTHY NATIONS WITH SO LITTLE USEFUL GUIDANCE ON HOW TO SPEND IT LACKING SUCH DIRECTION HE AND HIS MINIONS HAVE CHOSEN IN THE FIRST 21 MONTHS OF THE EBRD'S EXISTENCE TO SPEND MOST OF IT ON AMENITIES TO ENHANCE THE QUALITY OF THEIR WORKING LIVES ACCORDING TO A FINANCIAL TIMES EXPOSE UP UNTIL THE END OF 1992 THE BANK HAD SPLURGED 300 MILLION ON SALARIES OPERATING EXPENSES AND ON TURNING ITS NEW HEADQUARTERS INTO A SHOWPLACE THAT'S DOUBLE WHAT IT HAD LAID OUT IN LOANS AND INVESTMENTS IN THE SAME PERIOD TO ENHANCE THE LIVES OF THE MASSES EAST OF THE DANUBE ON WHOSE BEHALF THE BANK OSTENSIBLY WAS CREATED THE EBRD'S INITIAL PRIORITY SEEMS TO HAVE BEEN AESTHETICS IT WAS FELT NECESSARY TO RIP OUT THE TRAVERTINE MARBLE LINING THE LOBBY OF THE LONDON HEADQUARTERS BUILDING AND REPLACE IT WITH STATUARYQUALITY CARRARA MARBLE 12 MILLION WORKS OF ART WORTH 400000 NOW DECORATE ITS HALLS AND OFFICES MR ATTALI'S TRAVEL COMFORT LAST YEAR WAS ENHANCED BY NEARLY 1 MILLION SPENT ON PRIVATE AIRCRAFT MR ATTALI HAD NEVER BEEN A BANKER BEFORE BUT HE HAD SPENT A LOT OF TIME IN THE ELYSEE PALACE GIVING ADVICE TO FRANCOIS MITTERRAND THE CITY OF LONDON MUST HAVE SEEMED DRAB AFTER THAT OR AT LEAST UNTIL THE EBRD HEADQUARTERS GOT SOME HIGHQUALITY MARBLE FURTHER THE SUPPLICANTS VISITING HIS BANK OFTEN HAPPEN TO BE QUITE GRAND HEADS OF STATE ALBEIT FROM IMPOVERISHED COUNTRIES THERE IS A CERTAIN LOGIC IN ARGUING THAT THE GRANTOR OF LOANS SHOULD OPERATE IN A STYLE AT LEAST APPROXIMATING THAT OF THE GRANTEES WHILE MR ATTALI PROBABLY WON'T REGARD IT AS A DEFENSE OUR POSITION ON THE EBRD HAS BEEN CONSISTENT WE THINK IT SHOULD NEVER HAVE BEEN CREATED THERE WAS LITTLE IN THE RECORD OF MULTILATERAL DEVELOPMENT BANKS THAT JUSTIFIED THE CREATION OF ANOTHER ONE MUCH OF THE MONEY THEY'VE RAISED IN THE CAPITAL MARKETS DURING THE POSTWAR PERIOD HAS BEEN INVESTED IN THE THIRD WORLD BUT MANY PARTS OF THE THIRD WORLD HAVE BECOME POORER NOT RICHER IN CONSEQUENCE ONE REASON MR ATTALI WON'T SEE THAT AS A DEFENSE IS BECAUSE HE AND MR MITTERRAND WORKED HARD TO BRING ABOUT THE BANK'S CREATION IT NOW HAS 12 BILLION IN CAPITAL COMMITMENTS FROM MORE THAN 50 COUNTRIES THOUGH ONLY 30 IS PAID IN AND MOST OF THE SERIOUS CAPITAL COMES FROM THE US JAPAN AND THE FOUR LARGEST EUROPEAN COUNTRIES LEGALLY 60 OF THE BANK'S RESOURCES MUST BE DEVOTED TO THE PRIVATE SECTOR BUT THE RECORD OF SUCH BANKS IN ACTUALLY GETTING MONEY TO THE PRIVATE SECTOR IS NOT AUSPICIOUS MUCH OF IT SEEMS TO DRIFT INTO THE HANDS OF INTERMEDIARIES IN GOVERNMENT ALONG THE WAY PERHAPS MR ATTALI WILL YET VINDICATE HIMSELF AND HIS OVERHEAD COSTS BUT THERE IS ONE THING THAT FANS OUR DOUBTS THE FT REPORTED THAT AT A 75000 STAFF CHRISTMAS PARTY AT THE GROSVENOR HOUSE HOTEL THE EBRD SPENT 120 A HEAD ON A DINNER OF CONSOMME ROAST BEEF FRUIT SALAD AND BULGARIAN WINE WE KNOW IT'S HARD TO DINE WELL IN LONDON BUT REALLY 120 FOR THAT 9304160186 930416 CHARLES SCHWAB POSTS 19 PROFIT RISE FOR FIRST QUARTER BUT ITS STOCK TUMBLES BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHARLES SCHWAB CORP THE NATION'S BIGGEST DISCOUNT BROKERAGE FIRM REPORTED RECORD FIRSTQUARTER EARNINGS THAT FAR EXCEEDED ANALYSTS' EXPECTATIONS BUT AFTER A RECENT PRICE RUNUP SCHWAB'S STOCK GOT HAMMERED MORE THAN 8 SUGGESTING THAT THIS YEAR'S POWERFUL RALLY IN ITS SHARES IS OVER ANALYSTS SAY THE SAN FRANCISCOBASED FIRM POSTED NET INCOME OF 354 MILLION OR 90 CENTS A SHARE IN THE QUARTER A 19 JUMP FROM THE 297 MILLION OR 75 CENTS A SHARE REPORTED A YEAR EARLIER THE RECENT RESULTS ALSO ARE 22 HIGHER THAN ANALYSTS' CONSENSUS FORECAST OF 74 CENTS A SHARE AS TRACKED BY ZACKS INVESTMENT RESEARCH INC BUT SOME ANALYSTS SAY SCHWAB'S STOCK MAY HAVE PEAKED AFTER SURGING 46 THIS YEAR THROUGH WEDNESDAY YESTERDAY'S PLUNGE WAS A CLEAR CASE OF BUYING ON THE RUMOR SELLING ON THE FACT ANALYSTS SAY SCHWAB'S SHARES SLIPPED 3125 TO 35125 A SHARE IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ON NEARLY THREE TIMES NORMAL TRADING VOLUME THE MESSAGE IS THAT THE NEWS THAT EARNINGS IN THE QUARTER WOULD BE BETTER THAN EXPECTED WENT INTO THE STOCK STARTING LAST WEEK WHEN OTHER BROKERAGE FIRMS STARTED REPORTING SURPRISINGLY STRONG EARNINGS SAID GUY MOSZKOWSKI A BROKERAGE ANALYST AT SANFORD C BERNSTEIN & CO EVERYTHING IS STILL ROBUST MR MOSZKOWSKI SAYS THE QUESTION IS HOW MUCH BETTER CAN IT GET DEAN EBERLING A BROKERAGE ANALYST AT SHEARSON LEHMAN BROTHERS INC YESTERDAY DOWNGRADED SCHWAB TO UNDERPERFORM FROM NEUTRAL MR EBERLING SAID SCHWAB BECAUSE OF ITS HEAVY DEPENDENCE ON REVENUE FROM INDIVIDUALINVESTOR TRADING WON'T BE ABLE TO WITHSTAND A DROP IN INVESTOR ACTIVITY AS EASILY AS OTHER BROADBASED RIVALS SUCH AS MERRILL LYNCH & CO AND PAINEWEBBER GROUP INC BESIDES MR EBERLING SAID SCHWAB'S STOCK HAS RISEN TOO FAR TOO FAST NOTING THAT ITS STOCK HAS DOUBLED SINCE OCTOBER I THINK SCHWAB IS A GREAT COMPANY MR EBERLING SAID BUT THAT DOESN'T NECESSARILY MEAN IT'S ALWAYS A GREAT STOCK SCHWAB'S STOCK SWOON DRAGGED DOWN OTHER BROKERAGE SHARES WHICH HAVE SOARED IN THE PAST WEEK SHARES OF MORGAN STANLEY GROUP INC SALOMON INC AG EDWARDS INC QUICK & REILLY GROUP INC AND PAINEWEBBER EACH FELL MORE THAN 1 YESTERDAY BUT MR EBERLING SAYS HIS SCHWAB FORECAST SAYS NOTHING ABOUT BROKERAGE STOCKS SEVERAL OF WHICH HE EXPECTS CAN RISE STILL FURTHER INCLUDING MERRILL LYNCH INDEED MR EBERLING PREDICTS THAT BROKERAGE FIRMS WILL REPORT PRETAX PROFIT OF MORE THAN 22 BILLION IN THE FIRST QUARTER AND THAT THE SECURITIES INDUSTRY WILL HAVE ITS THIRD STRAIGHT YEAR OF RECORD EARNINGS SCHWAB SAID NET REVENUETOTAL REVENUE MINUS INTEREST EXPENSE INCREASED 7 IN THE FIRST QUARTER TO A RECORD 2363 MILLION MUTUALFUND SERVICE FEES JUMPED 54 TO 206 MILLION PRIMARILY REFLECTING GROWTH IN SCHWAB'S PROPRIETARY MUTUAL FUND BALANCES AND ITS NOTRANSACTION FEE MUTUAL FUND SERVICE LAUNCHED IN JULY SCHWAB SAID EXPENSES EXCLUDING INTEREST ROSE 5 TO 1749 MILLION THE EXPENSE GROWTH STEMMED FROM A JUMP IN CUSTOMER ASSETS ALONG WITH HIGHER TRADING ACTIVITY DURING THE QUARTER SCHWAB SAID CHAIRMAN CHARLES R SCHWAB SAID THE FIRM OPENED A RECORD 183000 NEW ACCOUNTS DURING THE FIRST QUARTER UP 29 FROM THOSE ADDED IN THE YEAREARLIER QUARTER ASSETS IN CUSTOMER ACCOUNTS INCREASED BY 74 BILLION TO A RECORD 73 BILLION SHEARSON'S MR EBERLING NOTES THAT SCHWAB HAS BEEN SUCCESSFUL IN BUILDING ITS ASSETMANAGEMENT BUSINESS BUT THOUGH SCHWAB WILL CONTINUE TO GROW AT A VERY FAST CLIP IT DOESN'T COVER FIXED COSTS LIKE OTHER BROKERAGE FIRMS MR EBERLING ADDED SCHWAB'S TRADING MULTIPLE AT ABOUT FIVE TIMES BOOK VALUE OF AN ESTIMATED 760 IS RICH NO MATTER HOW YOU CUT IT HE SAID 9304160185 930416 BIG BANKS POST STRONG RESULTS FOR 1ST QUARTER JP MORGAN NET ROSE 64 PNC SHOWS 49 JUMP EXCLUDING CHARGES A WALL STREET JOURNAL NEWS ROUNDUP SEVERAL MAJOR BANKS POSTED GENERALLY ROBUST EARNINGS INCREASES FOR THE FIRST QUARTER ENJOYING THE BENEFITS OF FALLING INTEREST RATES FEWER TROUBLED LOANS AND GAINS IN FEE AND RELATED INCOME BANKS REPORTING RESULTS WERE JP MORGAN & CO NEW YORK PNC BANK CORP PITTSBURGH NORWEST CORP MINNEAPOLIS KEYCORP ALBANY NY AND CONTINENTAL BANK CORP CHICAGO THERE'S NO SIGN OF PEAKING OF BANK PROFITABILITY SAID GEORGE SALEM BANKING ANALYST AT PRUDENTIAL SECURITIES WHAT WE'RE SEEING IS ONTARGET OR BETTER THAN EXPECTED RESULTS IN VIRTUALLY ALL CASES BANKS' NET INTEREST MARGINS THE SPREAD BETWEEN WHAT THEY PAY FOR DEPOSITS AND WHAT THEY CHARGE FOR LOANS CONTINUE TO BE WIDER THAN EXPECTED AND LOAN CHARGEOFFS HAVE FALLEN RAPIDLY LOANS OUTSTANDING REMAIN NEARLY UNCHANGED HOWEVER WHILE THERE WAS SOME PICKUP IN LOAN DEMAND COMPANIES AND CONSUMERS CONTINUE TO PAY DOWN DEBT BUT BANK SHARES FELL YESTERDAY ON PROFITTAKING AFTER CLIMBING EARLIER IN THE WEEK THERE IS NO BAD NEWS TO CAUSE THE SELLING BUT THE WHIMS OF THE MARKET MR SALEM SAID AFTER A SHARP RUNUP IN RECENT WEEKS JP MORGAN STOCK FELL SHARPLY DURING THE DAY BUT IT REBOUNDED AND WAS QUOTED AT 7175 UP 25 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE IN BIG BOARD LATE TRADING PNC FELL 625 CENTS TO 35375 NORWEST WAS DOWN 1125 TO 53625 KEYCORP ROSE 375 CENTS TO 4475 AND CONTINENTAL WAS DOWN 1 TO 2675 JP MORGAN REPORTED EARNINGS SIGNIFICANTLY BETTER THAN THE 138 A SHARE WALL STREET WAS EXPECTING BEFORE ACCOUNTING CHANGES NET ROSE 64 TO 216 A SHARE FIRSTQUARTER INCOME OF 432 MILLION OR 216 A SHARE COMPARED WITH THE YEAREARLIER 264 MILLION OR 132 A SHARE HOWEVER A CHANGE IN THE METHOD OF ACCOUNTING FOR POSTRETIREMENT BENEFITS REDUCED THE FIRSTQUARTER NET BY 137 MILLION OR BY 69 CENTS A SHARE A YEAR EARLIER A CHANGE IN THE METHOD OF ACCOUNTING FOR INCOME TAXES BOOSTED EARNINGS BY 452 MILLION OR BY 230 A SHARE THE COMPANY HAD A RECORD LEVEL OF TRADING REVENUE WHICH SOARED TO 469 MILLION FROM 164 MILLION A YEAR EARLIER REFLECTING STRONG RESULTS IN SWAPS AND GLOBAL DEBT TRADING THE RESULTS WERE FANTASTIC SAID FRANCIS SUOZZO BANKING ANALYST AT SG WARBURG & CO THE COMPANY HAS ENORMOUS REVENUE MOMENTUM IN ALL THE BUSINESSES THEY'RE IN MR SUOZZO BELIEVES THE COMPANY'S STOCK HAS BEEN PRESSURED BECAUSE OF QUESTIONS OF WHETHER THE HEAVY TRADING REVENUE IS SUSTAINABLE HE RAISED HIS PERSHARE EARNINGS ESTIMATES FOR 1993 TO 660 FROM 520 CHAIRMAN DENNIS WEATHERSTONE SAID WE'RE OFF TO AN EXCELLENT START FOR THE YEAR AIDED BY GAINS FROM MAKING MARKETS IN SWAPS AND OTHER DERIVATIVE INSTRUMENTS AND FROM FIXEDINCOME TRADING ESPECIALLY IN EUROPE CORPORATE FINANCE INVESTMENT MANAGEMENT AND OPERATIONAL SERVICE FEES WERE UP SMARTLY AS WELL HE SAID NET INTEREST REVENUE ROSE 44 TO 432 MILLION INCLUDING 74 MILLION IN REVENUE RELATED TO BRAZILIAN ASSETS BUT DECLINED EXCLUDING THOSE RECEIPTS NONINTEREST REVENUE ROSE 70 TO 105 BILLION ALTHOUGH NET INVESTMENT SECURITIES GAINS DIPPED 5 MILLION TO 95 MILLION CORPORATE FINANCE REVENUE ROSE 23 TO 119 MILLION AND INVESTMENT MANAGEMENT FEES ROSE 33 TO 113 MILLION JP MORGAN TOOK NO PROVISION FOR CREDIT LOSSES IN THE FIRST QUARTER CITING THE FIRM'S CREDIT EXPOSURES LEVEL OF NONPERFORMING ASSETS AND PROBABLE LOSS ON THE EXPOSURES A SPOKESMAN SAID THE BANK COULD IDENTIFY ONLY ONE OTHER QUARTER IN THE LAST 25 YEARS WHEN IT TOOK NO PROVISION FOR LOAN LOSSES A YEAR AGO THE PROVISION WAS 10 MILLION PNC'S PERFORMANCE WHICH EXCEEDED ANALYSTS' EXPECTATIONS OF ABOUT 63 CENTS A SHARE REFLECTED SHARPLY HIGHER NET INTEREST INCOME SECURITIES GAINS AND A LOWER LOANLOSS PROVISION BEFORE CHARGES FROM ACCOUNTING CHANGES THE COMPANY EARNED 187 MILLION OR 79 CENTS A SHARE UP 49 FROM 125 MILLION OR 57 CENTS A SHARE LAST YEAR THE CHARGES IN THE FIRST QUARTER OF 194 MILLION OR EIGHT CENTS A SHARE RESULT FROM ADOPTION OF A RULE REQUIRING ACCRUAL OF INCOME TAXES AND FROM MORE RAPID WRITEOFFS OF MORTGAGE SERVICING RIGHTS NET INTEREST INCOME ROSE 17 TO 454 MILLION FROM 386 MILLION A YEAR AGO THE PROVISION FOR LOAN LOSSES FELL 32 TO 614 MILLION FROM 904 MILLION AND SECURITY GAINS INCLUDING TRADING PROFITS AND GAINS IN EQUITY AND DEBT ACCOUNTS ROSE 44 TO 115 MILLION FROM 798 MILLION AT MARCH 31 PNC HAD 478 BILLION IN ASSETS NORWEST CORP'S FIRSTQUARTER PROFIT MORE THAN TRIPLED COMPARED WITH A YEAR AGO WHEN A BIG CHARGE FROM AN ACCOUNTING CHANGE CUT INTO NET INCOME EVEN EXCLUDING THAT YEARAGO CHARGE FIRSTQUARTER PROFIT SURGED 31 ON LOW INTEREST RATES AND STEADILY IMPROVING LOAN QUALITY THE NET INTEREST MARGIN ROSE TO 577 OR 048 OF A PERCENTAGE POINT HIGHER THAN A YEAR EARLIER FOR BANKS WITH LARGE CONSUMER DEPOSIT BASES SUCH AS NORWEST WHICH OPERATES THROUGHOUT THE UPPER MIDWEST THAT KIND OF A SPREAD ALMOST ENSURES LARGE PROFIT NONPERFORMING LOANS FELL FOR THE NINTH CONSECUTIVE QUARTER TO 3201 MILLION AT MARCH 31 OR JUST 132 OF LOANS WHILE NORWEST'S RESERVE FOR PROBLEM LOANS STOOD AT 7443 MILLION NORWEST HAS 455 BILLION IN ASSETS EARNINGS ROSE 30 TO A RECORD LEVEL AND THE COMPANY SAID IT EXCEEDED ITS GOALS FOR RETURN ON ASSETS AND RETURN ON COMMON EQUITY YEAREARLIER RESULTS ARE RESTATED TO REFLECT ACQUISITION OF PUGET SOUND BANCORP ON A POOLINGOFINTERESTS BASIS FEE INCOME ROSE 17 TO 1116 MILLION LED BY A UNIT THAT MANAGES ASSETS UNDER CONTRACT WITH THE FEDERAL DEPOSIT INSURANCE CORP INTEREST INCOME FELL 17 WHILE INTEREST EXPENSE FELL 18 AND NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ROSE 19 TO 3189 MILLION NONPERFORMING ASSETS FELL TO 3886 MILLION FROM 4479 MILLION A YEAR EARLIER AND THE PROVISION FOR LOAN LOSSES FELL 29 TO 319 MILLION FROM 448 MILLION A YEAR EARLIER NET CHARGEOFFS DECLINED AND THE ALLOWANCE FOR LOAN LOSSES 2982 MILLION AT MARCH 31 COVERED 158 OF NONPERFORMING LOANS UP FROM 137 AT YEAR END KEYCORP WHICH HAS ASSETS OF 319 BILLION COMPLETED THREE ACQUISITIONS IN THE FIRST QUARTER WITH TWO OTHERS PENDING OPERATING EARNINGS ROSE 7 AIDED BY INCREASED REVENUE AND A 3 DECLINE IN OPERATING EXPENSES ALTHOUGH THE BANK INCREASED ITS LOANLOSS PROVISION TO 56 MILLION FROM 30 MILLION AS A RESULT OF CONCERNS OVER ITS CALIFORNIA RESIDENTIAL REALESTATE PORTFOLIO NET INTEREST REVENUE FELL TO 123 MILLION FROM 130 MILLION WHILE FEES TRADING AND OTHER REVENUES ROSE 24 TO 138 MILLION NET INCOME INCLUDED 80 MILLION OR 144 A SHARE FROM A CHANGE IN ACCOUNTING FOR INCOME TAXES EXCLUDING THE CHANGE NET INCOME ROSE 7 TO 61 MILLION OR 96 CENTS A SHARE FROM 57 MILLION OR 90 CENTS A SHARE THE COMPANY CHARGED OFF 56 MILLION OF LOANS IN THE QUARTER UP FROM 40 MILLION A YEAR AGO AND ITS RESERVE FOR CREDIT LOSSES AT MARCH 31 WAS 400 MILLION DOWN FROM 411 MILLION A YEAR EARLIER ASSETS AT MARCH 31 TOTALED 22 BILLION 9304160184 930416 EC COMMISSION GIVES WAKEUP CALL FOR SATELLITE PHONE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON TO HELP EUROPE'S TELECOMMUNICATIONS AND SPACE INDUSTRIES THE EUROPEAN COMMUNITY COMMISSION IS STUDYING PROPOSALS TO LAUNCH EUROPE INTO THE GLOBAL RACE FOR SPACEBASED TELEPHONES A REPORT BEING DRAFTED BY THE COMMISSION'S STAFF SOURCES SAY CALLS FOR EC INDUSTRY AND GOVERNMENT TO GET MORE DEEPLY INVOLVED IN THE DEVELOPMENT OF SOCALLED LOW EARTH ORBIT SATELLITE SYSTEMS SUCH SYSTEMS PLANNED FOR THE LATE 1990S BY MOTOROLA CORP AND OTHERS WILL USE SCORES OF RELATIVELY LOWFLYING SATELLITES TO BOUNCE MESSAGES BACK AND FORTH FROM PORTABLE TELEPHONES AND FAX MACHINES ANYWHERE IN THE WORLD THEY'RE BILLED AS THE NEXT BIG STEP IN MOBILE COMMUNICATIONS COMPETING WITH TODAY'S CELLULAR PHONES CONCERNED THAT US COMPANIES ARE LEADING IN THE DEVELOPMENTS THE EC COMMISSION LATER THIS MONTH WILL CONSIDER ISSUING A WAKEUP CALL TO EUROPEAN INDUSTRY ACCORDING TO A SOURCE WHO HAS SEEN A DRAFT OF THE COMMISSION PAPER BUT DECLINES TO BE IDENTIFIED THOUGH JUST A COMMISSION COMMUNICATION RATHER THAN ANY FIRM ACTION THE DOCUMENT DISCUSSES THE NEED FOR COORDINATED EUROPEAN RESEARCH AND TECHNICAL STANDARDS IN THE FIELD TO AVOID BEING LEFT IN THE DUST OF US AND OTHER PLAYERS THERE ISN'T ANY MENTION OF HOW MUCH MONEY ANY EC PROGRAMS IN THE FIELD WOULD COST BUT THE COMMISSION STATEMENT IS INTENDED JUST TO GET THE POLITICAL BALL ROLLING IN THE US TELECOMMUNICATIONS INDUSTRY HOWEVER THERE'S DISAGREEMENT OVER JUST HOW BIG A COMMERCIAL DEAL SUCH SYSTEMS REALLY WILL BECOME THE MOST AMBITIOUS PROJECT IS MOTOROLA'S IRIDIUM VENTURE A 337 BILLION 66SATELLITE NETWORK FOR WHICH MOTOROLA EXECUTIVES HAVE BEEN TROTTING THE GLOBE LINING UP INVESTORS THE SERVICE IS SCHEDULED TO START IN 1998 AND WILL LET SUBSCRIBERS USE THEIR PORTABLE PHONES AND TERMINALS ANYWHERE IN THE WORLD BUT SKEPTICS SAY THE SERVICE WILL JUST BE TOO EXPENSIVE AND GOLDPLATED TO COMPETE WITH EXISTING CELLULAR OR OTHER MOBILECOMMUNICATIONS SYSTEMS 9304160183 930416 INTERNATIONAL HONG KONG TRADE SURPLUS HONG KONG HONG KONG'S FEBRUARY TRADE SURPLUS NARROWED 13 TO 862 BILLION HONG KONG DOLLARS US112 BILLION FROM THE YEAREARLIER'S HK995 BILLION HURT BY A 30 INCREASE IN IMPORTS ACCORDING TO OFFICIAL FIGURES DURING THE MONTH HONG KONG POSTED A TRADE SURPLUS OF HK345 MILLION WITH CHINA WHICH WAS THE COLONY'S LARGEST MARKET FOR DOMESTIC EXPORTS AND REEXPORTS REEXPORTS ARE GOODS IMPORTED AND RESHIPPED ABROAD WITHOUT MATERIAL CHANGE 9304160182 930416 CANADA SETS BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 140 BILLION CANADIAN DOLLARS US111 BILLION OF BONDS DUE SEPT PROCEEDS WILL BE USED TO REDEEM C173 BILLION OF BONDS MATURING MAY 1 9304160181 930416 CINCINNATI MILACRON OFFERING CINCINNATI CINCINNATI MILACRON INC SAID IT CLOSED ITS PUBLIC OFFERING OF 5175000 COMMON SHARES INCLUDING AN UNDERWRITERS' OVERALLOTMENT OPTION OF 675000 SHARES AT 2050 A SHARE THE MACHINE TOOL MAKER SAID NET PROCEEDS OF 1014 MILLION ARE TO BE USED TO REDEEM 60 MILLION OF 12 SINKING FUND DEBENTURES DUE 2010 AND TO PAY DOWN BANK DEBT FIRST BOSTON CORP WAS LEAD MANAGER OF THE OFFERING 9304160180 930416 JAPANESE STEEL OUTPUT TOKYO JAPAN'S STEEL PRODUCTION IN MARCH WAS UP 38 FROM THE YEAREARLIER MONTH TO 8590000 METRIC TONS THE JAPAN IRON AND STEEL FEDERATION REPORTED A METRIC TON EQUALS 22046 POUNDS THE LATEST FIGURE FOLLOWED GAINS OF 06 IN FEBRUARY 52 IN JANUARY AND 09 IN DECEMBER THE MARCH OUTPUT WAS UP 95 FROM FEBRUARY AS THE NUMBER OF FACTORY OPERATION DAYS ROSE WITH THE LATEST MONTHLY FIGURES PRODUCTION OF STEEL BY JAPAN FOR THE FISCAL YEAR THAT ENDED MARCH 31 FELL 65 TO 98940000 TONS MARKING THE SECOND CONSECUTIVE YEAR OF DECLINE 9304160179 930416 JAPANESE SHIP CONTRACTS TOKYO JAPANESE SHIPBUILDERS SIGNED EXPORT CONTRACTS TO BUILD 77 VESSELS DURING THE FISCAL YEAR ENDED MARCH 31 WITH COMBINED GROSS TONNAGE OF 2670000 METRIC TONS FALLING 63 IN TONNAGE FROM THE PREVIOUS YEAR THE JAPAN SHIP EXPORTERS' ASSOCIATIONS REPORTED A METRIC TON EQUALS 22046 POUNDS THE ASSOCIATION SAID THE LATEST TOTAL WAS THE THIRD LOWEST LEVEL IN THE PAST TWO DECADES THE PERSISTENT GLOBAL ECONOMIC SLUMP WAS SEVERE ENOUGH TO DISCOURAGE SHIP OWNERS FROM PLACING ORDERS ESPECIALLY FOR TANKERS THUS POSING THE THREAT THAT REPLACEMENT OF AGED VERY LARGE CRUDE CARRIERS OR VLCCS COULD BE PUSHED EVEN FURTHER INTO THE FUTURE AN ASSOCIATION SPOKESMAN SAID 9304160178 930416 JOHNSON & HIGGINS EXPANSION NEW YORK INTERNATIONAL INSURANCE BROKER JOHNSON & HIGGINS SAID IT ESTABLISHED A RISKMANAGEMENT CONSULTING FACILITY IN SINGAPORE TO SERVICE CLIENTS IN ASIA AND THE PACIFIC RIM GEORGE MCGHIE WHO WILL HEAD THE OFFICE HAD BEEN MANAGER CONSULTING SERVICES OF J&H GLOBAL CAPTIVE MANAGEMENT GROUP IN BERMUDA SINCE 1990 JOHNSON & HIGGINS HAS FOUR OTHER RISKMANAGEMENT CONSULTANCIES LOCATED IN BERMUDA NEW YORK TOKYO AND LONDON 9304160176 930416 WHO'S NEWS RJR NABISCO HOLDINGS CORP RJR NABISCO HOLDINGS CORP NEW YORK THE NABISCO FOODS GROUP NAMED RAYMOND J VERDON PRESIDENT OF ITS 3 BILLION NABISCO BISCUIT CO MR VERDON 51 YEARS OLD SUCCEEDS ELLEN R MARRAM WHO IS LEAVING TO RUN THE 17 BILLION BEVERAGE GROUP AT SEAGRAM CO MR VERDON HAD BEEN HEAD OF NABISCO'S CANADIAN OPERATIONS 9304160175 930416 INTERNATIONAL FOREIGNERS AIDING KURDS FACE ATTACKS OFFICIALS STRUGGLE TO IDENTIFY KILLERS OF WORKERS IN IRAQ BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL CHAMCHAMAL IRAQ WITH GASOLINE SHORT AND SPARE PARTS EMBARGOED CARS ARE ALWAYS BREAKING DOWN ALONG THE DUSTY ROADS THAT LINK KURDISHCONTROLLED TOWNS IN THESE NORTHERN HILLS FOREIGNAID WORKERS ARE USED TO BEING WAVED DOWN TO HELP BUT ON AN AFTERNOON IN JANUARY WHEN THREE KURDS RAN OUT OF THE FOG TO FLAG DOWN HIS CAR INSTINCT TOLD JOE MARTINICO THAT THIS TIME IT WASN'T A BREAKDOWN DRIVE HE YELLED TO MAGID THE KURD AT THE WHEEL OF HIS TOYOTA LANDCRUSIER AS THE CAR LEAPT FORWARD A 50SECOND BURST OF FIRE SLAMMED ITS REAR TURNING THE BACK PASSENGER DOOR INTO A SIEVE BULLETS SHATTERED MAGID'S LEGS AND PERFORATED HIS ABDOMEN AS MAGID SCREAMED THAT HE COULDN'T DRIVE MR MARTINICO JUMPED INTO THE FRONT SEAT AND FORCED THE VEHICLE FORWARD ON ITS BULLETFLATTENED TIRES SPRAWLED AGAINST THE BACKSEAT DOOR MR MARTINICO'S COLLEAGUE STUART CAMERON HAD TAKEN THE WORST OF THE BARRAGE SEVENTEEN BULLETS RIDDLED HIS BODY AND HE DIED LONG BEFORE THE BATTERED VEHICLE REACHED ASSISTANCE TWO MONTHS LATER IN A SIMILAR AMBUSH VINCENT TOLLET A BELGIAN PROJECT COORDINATOR FOR HANDICAP INTERNATIONAL WAS KILLED AT THE WHEEL OF HIS CAR HE HAD BEEN BRINGING ARTIFICIAL LIMBS TO KURDS MAIMED BY MINES BAGHDAD QUICKLY BLAMED THE USIMPOSED NOFLY ZONE AND THE UNITED NATIONS SAFEHAVEN FOR THE LACK OF LAW AND ORDER IN THE KURDISHCONTROLLED AREAS OF NORTH IRAQ IN AUSTRALIA MR CAMERON'S HOME AN IRAQI DIPLOMAT WARNED THAT AID WORKERS WHO CHOSE TO HELP THE KURDS IN REGIONS BEYOND HIS GOVERNMENT'S CONTROL REMAINED AT RISK OF FURTHER ATTACKS THE AUSTRALIAN FOREIGN MINISTRY INITIALLY SEEMED TO ACCEPT BAGHDAD'S SCENARIO SAYING THAT THE KILLING WAS A LOCAL MATTER POSSIBLY AN ACCIDENT BUT LOCAL KURDS HAVE A DIFFERENT EXPLANATION THE MURDERS THEY SAY WERE JUST A SMALL PART OF A CAMPAIGN DESIGNED TO DRIVE FOREIGN HELP OUT OF KURDISHCONTROLLED AREAS OF IRAQ IN MR CAMERON'S CASE THEY SAY THEY HAVE ARRESTED TWO MEN WHO HAVE CONFESSED THEY WERE PAID BY A SENIOR OFFICER OF ESTIKBARAT BAGHDAD'S FEARED MILITARY INTELLIGENCE NETWORK TO AMBUSH A FOREIGNAID WORKER UN RESOLUTION 688 PASSED IN APRIL 1991 DEMANDS THAT IRAQ COOPERATE WITH INTERNATIONAL HUMANITARIAN ORGANIZATIONS SEEKING TO ASSIST THE KURDS BUT SINCE LAST SUMMER THERE HAVE BEEN NUMEROUS ASSAULTS ON FOREIGNERS HELPING THE KURDS IN THE DE FACTO STATE THEY HAVE ESTABLISHED UNDER WESTERN AIR PROTECTION LAST JULY 6 A VAN PACKED WITH EXPLOSIVES WAS DETONATED NEAR THE CAR OF DANIELLE MITTERAND WIFE OF THE FRENCH PRESIDENT AS SHE TOURED KURDISH AID PROJECTS TEN DAYS LATER A UN GUARD FROM FIJI WAS SHOT DEAD IN HIS SLEEP SOMEONE HURLED A GRENADE AT THE WORLD FOOD PROGRAM OFFICE IN SULAIMANIYA AND TWO UN GUARDS WERE LIGHTLY INJURED BY A GRENADE LOBBED FROM A SPEEDING CAR A THIRD HAD HIS CAR BLOWN UP BY A 22POUND BOMB THE TURKISH TRUCK DRIVERS WHO CARRY UNPURCHASED KEROSENE INTO NORTHERN IRAQ ARE ALSO TARGETS FIFTEEN TANKERS HAVE BEEN BLOWN UP THE DRIVERS GET TO AN IRAQI GOVERNMENT CHECKPOINT AND ARE HERDED OUT OF THEIR VEHICLES AND INTO A SHED SAYS A UN OFFICIAL A WHILE LATER THEY'RE TOLD TO DRIVE ON THEN ONE TO FOUR HOURS LATER DEPENDING ON WHAT THE CLOCK'S BEEN SET FOR THE TRUCKS BLOW UP THE UN NOW INSPECTS ALL TANKERS AFTER THEY PASS IRAQI CHECKPOINTS WHAT PEOPLE HERE FIND HARD TO UNDERSTAND SAYS JALAL TALABANI LEADER OF ONE OF THE TWO MAIN KURDISH POLITICAL PARTIES IS WHY THE US ADMINISTRATION DOESN'T USE ITS AIR STRIKES AGAINST SADDAM HUSSEIN AS PUNISHMENT FOR THESE BLATANT VIOLATIONS OF THE UN'S HUMANITARIAN RESOLUTION RATHER THAN FOR MOVING A MISSILE FROM HERE TO THERE AS IT DID LAST JANUARY ONE REASON MAY BE THAT NONE OF THE ATTACKS HAS BEEN AGAINST AN AMERICAN TARGETING TURKS BELGIANS FIJIANS AND AUSTRALIANS MINIMIZES THE CHANCE OF A US BACKLASH BAGHDAD MEANWHILE DENIES RESPONSIBILITY FOR ANY OF THE ATTACKS BLAMING KURDISH FACTIONFIGHTING THE KURDS' HISTORY OF BICKERING HAS LEFT THEM OPEN TO SUCH CHARGES BUT SINCE KURDISH ELECTIONS LAST MAY THE NORTH HAS GRADUALLY BECOME MORE ORDERLY WITH UNIFORMED KURDISH POLICE AND A REGULAR ARMY REPLACING RIFLETOTING IRREGULARS THE KILLING OF MR CAMERON SHOWS THE COMPLEXITY OF FIGURING OUT WHODUNIT' IN AN INFANT DEMOCRACY STRUGGLING INTO EXISTENCE ALONGSIDE BAGHDAD'S SOPHISTICATED POLICESTATE MR CAMERON'S AID GROUP IS STEERING CLEAR OF SPECULATION ABOUT HIS MURDER LEAVING INVESTIGATION TO THE UN GUARDS CONTINGENT TO TRY AND LAY BLAME SAYS ROBERT YALLOP CARE INTERNATIONAL'S JORDANBASED REGIONAL DIRECTOR IS TO RUN THE RISK OF BOTH BLAMING THE WRONG PARTIES AND TO FURTHER ENDANGER A GROUP OF PEOPLE WHO FACE ENOUGH DIFFICULTIES IN THEIR HUMANITARIAN TASK THE UN GUARDS HAVE FILED A REPORT ON MR CAMERON'S KILLING BUT SO FAR THE FINDINGS HAVEN'T BEEN DISCLOSED TO CARE AN INVESTIGATION INTO MR TOLLET'S KILLING IS STILL UNDER WAY MR CAMERON A POWERFULLY BUILT 45YEAROLD RETIRED LAST SEPTEMBER AS A MAJOR AFTER 20 YEARS IN THE AUSTRALIAN ARMY HE LEFT HIS WIFE AND TWO DAUGHTERS IN BRISBANE LAST NOVEMBER TO BECOME REGIONAL MANAGER OF A WINTER SURVIVAL PLAN DESIGNED TO DELIVER UNICEF HEATING FUEL AND WORLD FOOD PROGRAM RATIONS TO DESTITUTE KURDS MR CAMERON'S SULAIMANIYA TURF WAS THE TOUGHEST TO MANAGE AT THE VERY END OF SUPPLY LINES HARD AGAINST IRAQIMILITARY POSITIONS AND OUTSIDE THE ALLIES' NOFLY ZONE APART FROM A STINT AS A UN TRUCE SUPERVISOR AT THE END OF THE IRANIRAQ WAR MR CAMERON HAD LITTLE MIDDLE EAST EXPERIENCE BUT HE QUICKLY DEVELOPED A FEEL FOR THE KURDS AND THEIR CUSTOMS ON CHRISTMAS DAY HE THREW A PARTY AND INVITED HIS KURDISH STAFF AT ONE POINT RECALLS BORHAN HUSSEIN WHO WAS AT THE PARTY HE TOOK A FEW OF US ASIDE AND ASKED IF THERE WERE ANY POOR FAMILIES LIVING NEARBY WE MENTIONED FOUR OR FIVE FAMILIES AND HE BOUGHT KEBAB AND SENT IT TO THEM THE GESTURE MIRRORED THE MUSLIM CUSTOM OF GIVING FOOD TO THE POOR ON IMPORTANT RELIGIOUS FEASTS HE PERHAPS PROVED LESS SENSITIVE FIVE DAYS LATER WHEN A ROW OCCURED OVER 50 LITERS OF KEROSENE LEFT OVER FROM A DISTRIBUTION IN CHAMCHAMAL PARTLY BECAUSE OF THE BOMBINGS OF TURKISH TANKERS UNICEF HASN'T BEEN ABLE TO SUPPLY NEARLY ENOUGH FUEL THROUGH THE COLD WINTER AND THAT HAS RAISED TENSIONS WHEN DISTRIBUTIONS TAKE PLACE IN THE FIGHT OVER THE 50 LITERS IN CHAMCHAMAL SENIOR TOWN OFFICIALS ABUSED AND BEAT A KURD WORKING FOR CARE AND MR CAMERON INSISTED THAT THE OFFICALS APOLOGIZE SOME AID WORKERS SPECULATE THAT MR CAMERON HADN'T BEEN AROUND KURDS LONG ENOUGH TO KNOW HOW DEEPLY HUMILIATING SUCH A PUBLIC SHOW OF WEAKNESS WOULD BE AND WHAT ILLFEELING IT COULD ENGENDER ONE SCENARIO IS THAT IN THE AFTERMATH OF THE ARGUMENT BAGHDAD SAW AN OPPORTUNITY TO CARRY OUT A LONGPLANNED KILLING AND PUT THE BLAME ON A LOCAL FEUD CHAMCHAMAL IS A POOR AND EDGY PLACE SURROUNDED BY THE DENSE SLUMS INTO WHICH THE BAGHDAD GOVERNMENT FORCED KURDS WHEN IT RAZED THEIR MOUNTAIN VILLAGES IN THE 1980S THE TOWN SITS AT THE EXTREME EDGE OF THE TERRITORY THE KURDS HAVE WRESTED FROM BAGHDAD'S CONTROL AND OFTEN COMES UNDER IRAQI SHELLING IN ANY MILITARY PUSH IT WOULD BE ONE OF THE FIRST PLACE TO FALL BACK UNDER IRAQI GOVERNMENT CONTROL KURDS SAY THE BAGHDAD GOVERNMENT PREYS ON THE TOWN'S POVERTY AND INSECURITY USING BRIBES AND THREATS TO BUY AGENTS ACCORDING TO THE KURDISH SECURITY POLICE RAHMAN HAMMA JAN AND YASSIN TAHIR FATTAH WERE TWO OF THEM THE TWO MEN BOTH 21 YEARS OLD WERE CAPTURED JUST AFTER THE SHOOTING AND ARE SAID TO HAVE CONFESSED TO EACH ACCEPTING A 500DINAR ABOUT 20 DEPOSIT TO KILL A FOREIGNAID WORKER THE TWO MEN ARE IN JAIL AWAITING TRIAL MR RAHMAN IN PARTICULAR CAME FROM AN EXTREMELY POOR FAMILY FOR WHOM EVEN 500 DINARS THE EQUIVALENT OF TWO MONTHS' SALARY SEEMED A FORTUNE THEY WERE SAID TO HAVE BEEN PROMISED A FURTHER 29500 DINARS AND A CAR AFTER THE KILLING THE LEAD CONSPIRATOR A KURD WHO HASN'T YET BEEN ARRESTED IS SAID TO HAVE RECEIVED THE MONEY AND INSTRUCTIONS FROM AN IRAQI MILITARY OFFICER BASED IN KIRKUK KNOWING CHAMCHAMAL'S REPUTATION MANY FOREIGN AID WORKERS GIVE THE TOWN A WIDE BERTH SENDING LOCAL STAFF TO DEAL WITH PROBLEMS BUT MR CAMERON BELIEVED IN HANDSON MANAGEMENT AS DID MR MARTINICO WHO MANAGED FUEL DISTRIBUTIONS WITH MAGID AND AWAT ANOTHER KURDISH DRIVER AND BODYGUARD THE TWO MEN SET OFF TO SUPERVISE THE FIRST DISTRIBUTION AFTER THE PREVIOUS WEEK'S ARGUMENT THE 43YEAROLD MR MARTINICO HAD AN ENTIRELY DIFFERENT BACKGROUND FROM MR CAMERON HAVING SOLD A SPORTINGGOODS FIRM A YEAR BEFORE JOINING CARE I'D HAD THE HIGHROLLING WEALTHY BUSINESS LIFE BUT IT HADN'T BROUGHT ME MUCH INNER SATISFACTION HE SAYS HE FOUND WHAT HE WAS LOOKING FOR IN IRAQ HE SAYS AND I KNOW STUART FELT EXACTLY THE SAME THE TOYOTA WAS ABOUT FIVE MINUTES OUT OF TOWN ON ITS WAY BACK TO THE OFFICE WHEN THE SHOOTING STARTED BULLETS HIT ITS POWERFUL RADIO LEAVING NOTHING BUT A WEAKSIGNALLED WALKIETALKIE TO SUMMON HELP WITH A BULLET IN HIS ELBOW SHRAPNEL IN HIS KNEE AND HIP AND A SCREAMING MAGID CRUSHED ALMOST UNDERNEATH HIM IN THE DRIVER'S SEAT MR MARTINICO NURSED THE CAR TO THE NEAREST TOWN WHERE AWAT MANAGED TO FLAG DOWN A BUS BACK AT CARE HEADQUARTERS IN SULAIMANIYA MR CAMERON'S STAFF HAD FINISHED WORK FOR THE DAY AND WERE SITTING AROUND CHATTING WHEN MR MARTINICO'S FIRST FAINT MAYDAY CAME CRACKLING OVER THE RADIO CARE STAFF SPENT THE NIGHT SITTING UP WITH MR MARTINICO AND MAKING PLANS TO EVACUATE HIM AND MR CAMERON'S BODY THE FOLLOWING DAY IN THE MORNING KURDISH POLICE BROUGHT A PICKUP TRUCK FULL OF KURDISH MEN TO MR MARTINICO AND ASKED HIM IF ANY OF THE GUNMEN WERE ABOARD MR MARTINICO SAYS HE EASILY IDENTIFIED THE FIRST MAN WHO HAD FLAGGED DOWN HIS TOYOTA THAT AFTERNOON THE CAR CARRYING MR CAMERON'S BODY PULLED OUT OF THE HOSPITAL ON THE FIRST LEG OF ITS LONG JOURNEY HOME ALONG THE STREETS OF SULAIMANIYA THOUSANDS OF KURDS LINED THE SIDEWALKS AND ROOFTOPS SOME HAD BROUGHT THEIR WEAPONS AND SHOULDERED THEM IN A MILITARY SALUTE OTHERS JUST STOOD IN SILENT FAREWELL ON A FEW WALLS HASTILY LETTERED POSTERS IN FRACTURED ENGLISH STRUGGLED TO EXPRESS THEIR FEELINGS WE REFUSE STRONGLY TERRORISM AND CRIMINAL ACTS DONE BY SADDAM'S REJEEM AGAINST THE UN SAID ONE POSTER SIGNED BY THE SULAIMANIYA WOMEN'S SOCIETY ANOTHER POSTER UNSIGNED CARRIED A SIMPLER MESSAGE KURDS WILL NOT FORGET STUART 9304160174 930416 TECHNOLOGY BRITISH TELECOM WON'T FIGHT UK PLAN OF AT&T PROVIDED IT GETS US ACCESS BY RICHARD L HUDSON AND MARY LU CARNEVALE STAFF REPORTERS OF THE WALL STREET JOURNAL BRITISH TELECOMMUNICATIONS PLC SAID IT WON'T OPPOSE AMERICAN TELEPHONE & TELEGRAPH CO'S APPLICATION TO PROVIDE INTERNATIONAL COMMUNICATIONS SERVICES IN BRITAIN SO LONG AS BT GETS RECIPROCAL ACCESS IN THE US BT'S INVESTORS HOWEVER APPARENTLY WEREN'T THRILLED ABOUT AT&T'S PLANS TO CHALLENGE BT ON ITS TURF STOCK TRADERS IN LONDON PUSHED BT'S STOCK PRICE DOWN YESTERDAY BY SIX PENCE A SHARE TO 4205 PENCE 652 APIECE IN LATE TRADING THE UNEASINESS FOLLOWED AT&T'S ANNOUNCEMENT THAT IT HAD FILED FOR A LICENSE TO OFFER COMMUNICATIONS SERVICES IN BRITAIN AT&T ALSO SAID IT WOULD PETITION THE FEDERAL COMMUNICATIONS COMMISSION TO BLOCK BT'S RECENT APPLICATION TO OFFER INTERNATIONAL SERVICES IN THE US UNTIL US CARRIERS GAIN EQUIVALENT ACCESS TO PHONE CUSTOMERS IN THE UNITED KINGDOM BT CLAIMS THE UK MARKET IS COMPLETELY OPEN BUT JUST SAYING SO DOESN'T MAKE IT SO SAID JOHN BERNDT PRESIDENT OF AT&T BUSINESS SERVICES AT A WASHINGTON DC NEWS CONFERENCE ANNOUNCING AT&T'S PLAN HE SAID THAT MERCURY COMMUNICATIONS A UNIT OF CABLE & WIRELESS PLC HAS BEEN COMPETING WITH BT IN BRITAIN FOR THE PAST EIGHT YEARS BUT HAS MANAGED TO WREST AWAY LESS THAN 10 OF THE MARKET FROM THE UK GIANT THE FACT IS BT IS AFTER SOMETHING IN THE US THAT SIMPLY ISN'T CRICKET AND ISN'T A FAIR GAME OF BASEBALL EITHER MR BERNDT SAID IN LONDON A BT SPOKESMAN DECLINED TO COMMENT ON COMPLAINTS BY AT&T AND OTHER US CARRIERS THAT BT DISCOURAGES RIVALS BY CHARGING HIGH RATES FOR CONNECTING CALLS TO ITS NETWORK CLAIMING SUCH PRICING IS CONFIDENTIAL BUT HE SAID THE PRICING IS ARBITRATED AND APPROVED BY THE GOVERNMENT'S OFFICE OF TELECOMMUNICATIONS AND NOT SET UNILATERALLY BY BT THE BRITISH CONTEND THAT THEIRS IS THE WORLD'S MOST OPEN TELECOMMUNICATIONS MARKET AND THAT WASHINGTON UNFAIRLY RESTRICTS FOREIGNERS BT FOR INSTANCE LAST YEAR SOLD A MINORITY STAKE IN MCCAW CELLULAR COMMUNICATIONS INC THE LARGEST US CELLULAR COMMUNICATIONS CONCERN TO AT&T PARTLY OUT OF FRUSTRATION AT BEING BARRED BY FCC REGULATION FROM RAISING THE STAKE FURTHER AND TAKING DIRECT CONTROL OF MCCAW TO PRESSURE WASHINGTON INTO LOOSENING UP THE BRITISH GOVERNMENT HAS BEEN HOLDING UP ACTION ON SPRINT CORP'S APPLICATION FILED MORE THAN A YEAR AGO FOR A LICENSE IN BRITAIN AND THE UK IS LIKELY TO USE AT&T'S APPLICATION TO TRY RAISING THE STAKES FURTHER AND GETTING THE FCC TO CLEAR BT'S OWN APPLICATION IN THE US BT'S SPOKESMAN SAID THE COMPANY WELCOMES AT&T'S APPLICATION BUT HE COULDN'T RESIST TEASING AT&T WE'RE DELIGHTED THAT THEY'VE MADE THE APPLICATION12 MONTHS AFTER SPRINT HE SAID BRITAIN'S DEPARTMENT OF TRADE AND INDUSTRY HAS YET TO ACT ON SPRINT'S REQUEST SOME LONDON ANALYSTS SAY AT&T'S APPLICATION MAY ACTUALLY END UP HELPING BT BY GIVING THE BRITISH GOVERNMENT MORE LEVERAGE IN A LONGSIMMERING DISPUTE BETWEEN LONDON AND WASHINGTON OVER TRADE IN TELECOMMUNICATIONS SERVICES JOHN J KELLER CONTRIBUTED TO THIS ARTICLE 9304160173 930416 FORMER CONGRESSMAN MAVROULES PLEADS GUILTY TO CHARGES BOSTON FORMER US CONGRESSMAN NICHOLAS MAVROULES D MASS PLEADED GUILTY TO TAKING IMPROPER GIFTS AND FILING FALSE TAX RETURNS HE IS SLATED TO SERVE 15 TO 21 MONTHS IN JAIL UNDER FEDERAL SENTENCING GUIDELINES AFTER HE WAS INDICTED LAST YEAR REP MAVROULES RAN FOR REELECTION IN HIS DISTRICT NORTHEAST OF BOSTON HE WON A CLOSELY CONTESTED DEMOCRATIC PRIMARY BUT LOST TO A REPUBLICAN CHALLENGER IN NOVEMBER MR MAVROULES PLEADED GUILTY TO 15 OF 17 COUNTS AGAINST HIM SAID JOHN PAPPALARDO US ATTORNEY AMONG THEM MR PAPPALARDO SAID WERE A CHARGE THAT INVOLVED TAKING 12000 FROM THE FAMILY OF A MAN IN FEDERAL PRISON TO HELP HIM TRANSFER TO A BETTER PRISON HE ALSO PLEADED GUILTY TO TAKING IMPROPER GIFTS INCLUDING USE OF AN AUTOMOBILE AND BELOWMARKET RENTAL OF A HOUSE AND TO SIX COUNTS OF FILING FALSE TAX RETURNS MR MAVROULES'S LAWYERS FAILED TO RETURN PHONE CALLS THE ASSOCIATED PRESS QUOTED MR MAVROULES AS SAYING I NEVER ASKED FOR A BRIBE OR RECEIVED A BRIBE 9304160172 930416 TECHNOLOGY APPLE COMPUTER'S NET INCOME FELL 18 IN SECOND PERIOD REFLECTING PRICE WAR BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC SAID ITS NET INCOME FOR THE FISCAL SECOND QUARTER FELL 18 TO 1109 MILLION AT THE LOW END OF ANALYSTS' EXPECTATIONS REFLECTING ITS SACRIFICE OF PROFIT MARGINS FOR MARKET SHARE IN THE PROTRACTED PERSONALCOMPUTER PRICE WAR FOR THE QUARTER ENDED MARCH 26 APPLE'S PROFIT FELL TO 1109 MILLION OR 92 CENTS A SHARE FROM 1351 MILLION OR 109 A SHARE A YEAR EARLIER SALES ROSE 15 TO 197 BILLION FROM 172 BILLION ANALYSTS HAD EXPECTED THE COMPUTER MAKER TO EARN BETWEEN 85 CENTS AND 113 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH THE RESULTS WERE RELEASED AFTER THE CLOSE OF THE MARKETS YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING APPLE SHARES FELL 150 TO 4725 DEMAND FOR APPLE SYSTEMS REMAINS STRONG OUR REVENUE GROWTH ACCELERATED DURING THE QUARTER AND WE ARE GROWING MARKET SHARE SAID APPLE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN SCULLEY APPLE CUPERTINO CALIF SAID GROSS PROFIT MARGINS DECLINED TO 385 OF SALES FROM 44 A YEAR EARLIER PARTLY BECAUSE OF PRICE CUTS TO MEET COMPETITION FROM OTHER COMPUTER MAKERS AND PARTLY BECAUSE OF INTRODUCTIONS OF NEW PRODUCTS SUCH AS THE CENTRIS COMPUTER AND MORE MODELS OF ITS LAPTOP LINE KNOWN AS POWERBOOK PARTS SHORTAGES ALSO HAVE RESTRICTED APPLE'S ABILITY TO MEET DEMAND FOR CERTAIN COMPUTERS IN THE FIRST HALF OF ITS FISCAL YEAR HOWEVER APPLE SAID WE HAVE NOW INVESTED IN LARGER INVENTORY BALANCES TO SATISFY THE INCREASED DEMAND AND ARE WELLPOSITIONED FOR REVENUE AND UNIT GROWTH IN THE SECOND HALF SOME ANALYSTS NOW FEEL THAT APPLE WON'T BREAK OUT OF ITS EARNINGS DOLDRUMS WHICH HAS LASTED FOR MUCH OF THE PAST TWO YEARS UNTIL THE FISCAL FOURTH QUARTER ONE IS BRUCE LUPATKIN AN ANALYST AT HAMBRECHT & QUIST WHO PREDICTED IN JANUARY THAT APPLE WOULD SHOW POSITIVE PROFIT COMPARISONS IN THE THIRD PERIOD APPLE'S MARGINS ARE DECLINING FASTER THAN I GUESSED BECAUSE OF PRICING PRESSURES ACROSS THE INDUSTRY HE SAID BY THE FOURTH QUARTER APPLE IS EXPECTED TO BENEFIT FROM SALES OF A MORE POWERFUL LINE OF MACINTOSHES A HANDHELD PERSONAL COMMUNICATOR CALLED THE NEWTON AND A NEW LINE OF SERVERS WHICH LINK OTHER COMPUTERS INTO NETWORKS MR SCULLEY NOTED THAT UNIT SALES GROWTH IN APPLE'S MACINTOSH LINE INCLUDING POWERBOOK EXCEEDED 38 WORLDWIDE AND 50 IN THE US DEMAND FOR POWERBOOK ALONE WAS UP MORE THAN 70 AND 100 IN THIS COUNTRY THE COMPANY SAID SALES ARE SOFT IN EUROPE BUT BOOMING IN ASIA PARTICULARLY IN JAPAN WHERE APPLE IS NOW THE SECONDLARGEST PC MAKER FOR THE FISCAL FIRST HALF APPLE EARNINGS FELL 96 TO 2722 MILLION OR 225 A SHARE FROM 3011 MILLION OR 245 A SHARE A YEAR EARLIER SALES ROSE 11 TO 397 BILLION FROM 358 BILLION 9304160171 930416 AUTOS ONCE PRIZED AS UNBEATABLE INVESTMENTS EXOTIC SPORTS CARS CRASH IN CURRENT VALUE BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL EXOTIC SPORTS CARS WITH NAMES LIKE FERRARI LOTUS AND LAMBORGHINI USED TO BE SYNONYMOUS WITH SPEED GLAMOUR AND EVERSOARING PRICES THEY TRADED LIKE WORKS OF ART NOT MERE MACHINES THAT NEEDED MARKETING BUT JUST AS THE PRICES FOR FINE ART HAVE FALLEN FROM THE GIDDY HEIGHTS OF THE 1980S SO HAVE THE VALUES OF THE AUTOMOBILE INDUSTRY'S ANSWERS TO PICASSO AND POLLACK FERRARIS THAT ONCE COULD HAVE FETCHED OVER 1 MILLION NOW ARE VALUED AT LESS THAN HALF THAT AFICIONADOS WHO PLUNGED INTO THE SPECULATIVE FRENZY IN EXOTIC CARS DURING THE LAST DECADE ARE CRYING THE BLUES AND EVEN GOING TO COURT AMONG THE UNHAPPY COLLECTORS DETROIT'S BIG THREE ALL OF WHICH BOUGHT EUROPEAN EXOTICCAR COMPANIES DURING THE LATE 1980S AND ARE NOW STRUGGLING TO SALVAGE OR BAIL OUT OF THEIR INVESTMENTS RECESSION LUXURY TAXES AND CORPORATE LAYOFFS ARE SHRINKING THE NUMBERS OF WEALTHY CAR BUFFS LOOKING TO BUY A FERRARI GTO OR A LOTUS ESPRIT NOW EXOTICCAR DEALERS AND MANUFACTURERS ARE LEARNING ABOUT MARKETING CONCEPTS SUCH AS VALUE COST REDUCTION AND DISCOUNTING ONCE UNHEARD OF IN THEIR RAREFIED WORLD THE COMPANIES ARE ADOPTING STAYINGALIVE TACTICS SAYS BILL GILLETTE AN EXOTICCAR ANALYST WITH DUPONT REGISTRY A MAGAZINE IN TAMPA BAY FLA THAT IS DEVOTED ALMOST ENTIRELY TO ADS FOR EXOTIC AND ANTIQUE CARS SUCH AN APPROACH MAY TAKE AWAY SOME PRESTIGE MR GILLETTE SAYS BUT IT'S A NECESSITY IN THIS MARKET THAT'S WHY AT HOLLYWOOD SPORTS CARS IN HOLLYWOOD CALIF GENERAL MANAGER CHRIS VANDAGRIFF HAGGLES WITH CUSTOMERS OVER PRICES SOMETHING HE DIDN'T DO A FEW YEARS AGO HE ALSO SELLS MORE USED CARS AND IS CAREFUL TO PAMPER EVERY CUSTOMER WE MAKE SURE OUR CUSTOMERS ARE GETTING GOOD VALUE MR VANDAGRIFF SAYS SOUNDING MORE LIKE A FORD DEALER THAN THE FERRARI DEALER HE IS BUT MR VANDAGRIFF'S APPROACH REFLECTS REALITY FERRARI OWNED BY ITALY'S FIAT SPA IS PERHAPS THE BESTKNOWN EXOTICCAR MAKER IN THE WORLD BUT LAST YEAR THE COMPANY SOLD ONLY 500 CARS IN THE US DOWN 50 FROM ITS PEAK IN 1988 THIS YEAR SALES AREN'T EXPECTED TO CLIMB MUCH SO TO BOOST DEMAND FERRARI RECENTLY STARTED ITS OWN FINANCE COMPANY IN THE US FERRARI FINANCIAL SERVICES ALREADY IS ADVERTISING A ZEROPERCENT FINANCE PROGRAM ON CERTAIN 1992 MODELS FERRARI IS ALSO LOOKING TO THE NEW 348 SPIDER FOR A LIFT THE AUTO MAKER HELD THE WORLD INTRODUCTION OF THE TWOSEAT CONVERTIBLE IN THE US IN FEBRUARY THE CAR SPORTS A 34 LITER V8 ENGINE THAT IS RATED AT 312 HORSEPOWER AND ACCELERATES FROM 0 TO 60 MILES AN HOUR IN 53 SECONDS THE SPIDER COSTS 121900 AND FERRARI EXPECTS TO SELL 200 ANNUALLY WE HAVE TO MAKE AN EFFORT TO IMPROVE THE WAY WE SELL FERRARIS CONCEDES GIAN LUIGI LONGINOTTI BUITONI PRESIDENT OF FERRARI'S US OPERATIONS THIS IS A FAR CRY FROM THE DAYS WHEN SPECULATORS CHEERFULLY PAID AS MUCH AS 300 OVER STICKER PRICE FOR EXOTIC SPORTS CARS IN HOPES OF QUICKLY RESELLING THE CAR FOR A PROFIT IN 1970 FOR EXAMPLE A NEW FERRARI 250 GTO COULD BE BOUGHT FOR 10000 TWO DECADES LATER THE CAR FETCHED 10 MILLION FROM ONE DETERMINED COLLECTOR THE MARKET WAS GOING BANANAS SAYS DU PONT REGISTRY'S MR GILLETTE TODAY THAT SAME FERRARI MODEL IS VALUED AT BETWEEN 3 MILLION AND 5 MILLION THE BUYING FRENZY IN THE EXOTICCAR MARKET ENDED IN LATE 1990 A CASUALTY OF THE RECESSION AND THE LUXURY TAX AT THE SAME TIME HIGHPERFORMANCE JAPANESE AND AMERICAN CARS ENTERED THE MARKET WITH CHEAPER PRICES CHRYSLER CORP'S DODGE STEALTH FOR EXAMPLE IS POWERED BY A THREELITER 24VALVE DOUBLE OVERHEAD CAM V6 ENGINE WITH TWIN TURBOCHARGERS IT IS RATED AT 300 HORSEPOWER AND ACCELERATES FROM 0 TO 60 MILES AN HOUR IN FIVE SECONDS THE PRICE 33107 AMONG THE INDIVIDUALS WHO PAID A PREMIUM FOR EUROPEAN EXOTIC CARS AND SAW THEIR INVESTMENTS DETERIORATE IS RAYMOND DEANGELO OF CALIFORNIA WHO BOUGHT A FERRARI 288 GTO FOR 285000 IN 1986 TWO YEARS LATER HIS COUSIN ANTHONY M CARLINI ACTING ON MR DEANGELO'S BEHALF SOLD THE CAR TO A MICHIGAN DEALER FOR 600000 BUT BY MARCH 1990 THE CAR HAD A VALUE OF 12 MILLION ACCORDING TO DOCUMENTS FILED IN US DISTRICT COURT IN DETROIT MR DEANGELO REFUSED TO GIVE THE CAR TO THE DEALER BECAUSE HE WANTED TO SELL IT AT A HIGHER PRICE THE MICHIGAN DEALER WHO HAD ALREADY PAID FOR THE CAR SUED MESSRS DEANGELO AND CARLINI FOR FAILING TO DELIVER IT THE DEALER KENNETH TOMPOR ULTIMATELY WAS AWARDED THE CAR BUT HE IS FAR FROM OVERJOYED IN ADDITION TO THE 600000 HE PAID FOR THE CAR HE SPENT ANOTHER 190000 IN LITIGATION COSTS AND THE CAR IS NOW VALUED AT JUST 400000 I CAN'T SELL IT NOW HE SAYS ANALYSTS SAY THERE ISN'T MUCH LIKELIHOOD EXOTICCAR PRICES WILL REFLATE SOON AND UNLIKE BIGGER AUTO MAKERS SPECIALIZED EXOTICCAR COMPANIES CAN'T READILY DIVERSIFY INTO MORE STABLE MARKETS SUCH AS TRUCKS OR SEDANS SUSAN JACOBS AN ANALYST WITH JACOBS AUTOMOTIVE IN LITTLE FALLS NJ AND OTHERS SAY THE EXOTICCAR MARKET WON'T REBOUND UNTIL 1995 OR 1996 WHEN DETROIT'S BIG THREE AUTO MAKERS BOUGHT EXOTICCAR COMPANIES IN THE MIDDLE AND LATE 1980S THEY BELIEVED THEY WERE ADDING LUSTER AND TECHNOLOGICAL SAVVY TO THEIR COMPANIES WHAT THEY GOT INSTEAD WERE FINANCIAL DRAINS GENERAL MOTORS CORP BOUGHT LOTUS FORD MOTOR CO ACQUIRED BRITAIN'S ASTON MARTIN AND CHRYSLER PURCHASED ITALIAN CAR MAKER LAMBORGHINI NONE OF THE EXOTIC COMPANIES ARE PROFITABLE LAST YEAR PRODUCTION AT LAMBORGHINI'S FACTORY IN SANT'AGATA BOLOGNESE FELL TO 250 CARS FROM 570 IN 1991 I DON'T SEE WHERE IT'S A GOOD STRATEGIC MOVE FOR THE BIG THREE TO KEEP THOSE COMPANIES SAYS MS JACOBS FORD HAS EXPRESSED NO INTEREST IN THE SALE OF ASTON MARTIN GM WANTS TO SELL ITS LOTUS UNIT AND CHRYSLER IS LOOKING TO SELL LAMBORGHINI BUT NEITHER HAS SO FAR ANNOUNCED ANY BUYERS CHRYSLER ALSO HOLDS A 156 STAKE IN ITALIAN CAR MAKER MASERATI WHICH IT BOUGHT IN 1984 THE RELATIONSHIP BETWEEN THE TWO HAS AT TIMES BEEN TESTY CHRYSLER AND MASERATI BICKERED FROM THE START OVER DETAILS OF A CAR THAT MASERATI BUILT FOR CHRYSLER IN 1989 CHRYSLER HALTED ORDERS OF THE LUXURY CONVERTIBLE AFTER JUST 7300 WERE BUILT BECAUSE IT WAS DEEMED A FLOP MASERATI ONE OF THE GRAND NAMES IN EXOTIC CARS IS CONTINUING TO STUMBLE FIAT WHICH OWNS 49 OF THE COMPANY TOOK OVER MANAGEMENT OF THE COMPANY IN FEBRUARY AFTER MASERATI CHAIRMAN ALEJANDRO DE TOMASO SUFFERED A BRAIN HEMORRHAGE MASERATI'S PRODUCTION PLUNGED TO 982 CARS LAST YEAR FROM 4133 IN 1986 ONE REASON FOR THE HUGE DROP MASERATI DIDN'T SHIP ANY CARS TO THE US LAST YEAR AND WON'T SEND ANY THIS YEAR EITHER I DON'T THINK WE'RE MISSING ANYTHING SAYS GEORGE GARBUTT CHIEF OPERATING OFFICER OF MASERATI'S US OPERATIONS THE MARKET CONDITION IS DREADFUL LOTUS MIGHT CONCUR IT WATCHED SALES SLUMP TO JUST 250 CARS IN THE US LAST YEAR DOWN 375 FROM ITS PEAK IN 1988 LOTUS ALSO SUFFERED AN EMBARRASSING SETBACK LAST YEAR WHEN IT HAD TO PULL ITS 40000 ELAN MODEL OUT OF THE US MARKET LEFTOVER ELANS ARE BEING PEDDLED WITH REBATES OF UP TO 5000 BUT LOTUS IS TRYING TO ADAPT TO CHANGING TIMES BY STAKING OUT A POSITION IN THE US AS THE AFFORDABLE ALTERNATIVE TO HIGHERPRICED EXOTIC CARS IT HAS SLASHED THE PRICE OF ITS ESPRIT TURBO BY 20000 RETURNING THE CAR'S PRICE TO ITS 1988 LEVEL FOR 67345 BUYERS GET A 22 LITER 16VALVE ENGINE THAT RACES FROM 0 TO 60 MILES AN HOUR IN 47 SECONDS THE CAR ALSO OFFERS MORE LEGROOM AND HEADROOM THAN ITS COSTLIER PREDECESSOR LOTUS ALSO HAS DEVELOPED A NEW LEASING PROGRAM WITH CHASE MANHATTAN BANK FOR ITS 1993 MODEL CARS THAT GIVES CUSTOMERS LOWER MONTHLY PAYMENTS THAN WERE PREVIOUSLY OFFERED AN EXOTIC SPORTS CAR DOES NOT HAVE TO CARRY A SIXFIGURE PRICE TAG TO BE CONSIDERED SUPER SAYS JAMES R BLACKWELL CHIEF OPERATING OFFICER OF LOTUS'S US SALES ARM 9304160170 930416 WHO'S NEWS JC PENNEY CO JC PENNEY CO DALLAS GALE DUFFBLOOM 53 YEARS OLD AND CHARLES R LOTTER 55 WERE NAMED EXECUTIVE VICE PRESIDENTS OF THIS RETAILER BOTH WERE FORMERLY SENIOR VICE PRESIDENTS RANDY S RONNING 44 HOWARD J JOHNSON 45 AND JAY F HUNDLEY 54 WERE PROMOTED TO VICE PRESIDENTS THE MOVES WERE TRIGGERED PRIMARILY BY THE RETIREMENT OF SEVERAL LONGTIME EXECUTIVES IN THEIR NEW POSITIONS MS DUFFBLOOM WILL BE DIRECTOR OF ADMINISTRATION AND MR LOTTER WILL OVERSEE AUDITING LOSS PREVENTION AND THE LEGAL DEPARTMENT 9304160169 930416 CLINTON TO PRESS JAPAN'S LEADER ON TRADE ISSUES MIYAZAWA WILL BE URGED TO BOOST SPENDING SET GOALS ON US IMPORTS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS PREPARING A ONETWO ECONOMIC PUNCH FOR HIS FIRST ENCOUNTER WITH JAPANESE PRIME MINISTER KIICHI MIYAZAWA TODAY ACCORDING TO CLINTON ADMINISTRATION OFFICIALS THE PRESIDENT PLANS TO LEAD WITH A SHOT TO TOKYO'S BROAD FISCAL POLICY PRESSING THE JAPANESE TO INCREASE GOVERNMENT SPENDING OVER FOUR YEARS MORE THAN THEY'VE ALREADY ANNOUNCED THEY WOULD THEN HE WILL HIT THE PRIME MINISTER WITH A PLAN TO HAVE JAPAN INCREASE PURCHASES OF SELECTED US MANUFACTURED GOODS INCLUDING COMPUTERS AND AUTO PARTS BY PRESSURING JAPAN OVER BROAD MACROECONOMIC ISSUES AND NARROWER INDUSTRIAL PURCHASES MR CLINTON HOPES TO REINFORCE THE MESSAGE THAT THE US TRADE DEFICIT WITH JAPAN IS INTOLERABLE AND THE SOURCE OF MUCH POLITICAL FRICTION BETWEEN THE TWO COUNTRIES I DON'T WANT TO SEE US REVERT TO PROTECTIONISM TO RESTORE THAT KIND OF TRADE BALANCE TREASURY SECRETARY LLOYD BENTSEN WARNED AFTER MEETING WITH MR MIYAZAWA EARLIER THIS WEEK BUT THE PLAN IS BOUND TO GENERATE NEW FRICTION ON BOTH SIDES OF THE PACIFIC PARTICULARLY THE PROPOSAL TO AID SPECIFIC US INDUSTRIES UNDER THAT PLAN THE US WOULD INSIST ON SETTING QUANTITATIVE GOALS AND MEASURING JAPANESE PROGRESS IN MEETING THEM WE ARE NOT IN FAVOR OF A POLICY THAT WOULD ATTEMPT TO SET QUANTITATIVE TARGETS SAID A SENIOR JAPANESE DIPLOMAT JAPANESE TRADE OFFICIALS HAVE REPEATEDLY SAID THEY CONSIDER IT A MISTAKE TO HAVE SIGNED A DEAL COMMITTING THEMSELVES TO IMPORT 20 OF THEIR SEMICONDUCTORS BY THE END OF LAST YEAR EVEN THOUGH THEY MET THE MARK THE JAPAN PLAN ASSEMBLED BY THE PRESIDENT'S ECONOMIC ADVISERS FOCUSES IN LARGE PART ON PUMPING UP THE JAPANESE ECONOMY THE REASONING IS SIMPLE A RECOVERING JAPAN WOULD SPEND MORE ON A VARIETY OF GOODS INCLUDING US IMPORTS MEANWHILE THE US HOPES THE PLAN WOULD STRENGTHEN THE YEN WHICH WOULD GIVE A SECOND BOOST TO US TRADE AS AMERICAN IMPORTS BECOME CHEAPER IN JAPAN AND JAPANESE IMPORTS BECOME COSTLIER IN WORLDWIDE MARKETS BUT SUCH MEASURES THE TRADITIONAL LEVERS OF THE TREASURY DEPARTMENT HAVEN'T PROVEN TO BE SUFFICIENT IN THE PAST AND THE ADMINISTRATION BELIEVES THAT THE BIG STIMULUS PACKAGE ANNOUNCED BY TOKYO TUESDAY ALSO ISN'T SUFFICIENT AND FALLS SHORT OF ITS STATED LEVEL OF ABOUT 116 BILLION IN THE PAST JAPAN HAS FLOATED STIMULUS PACKAGES AND THE BIG WESTERN ECONOMIES HAVE BOOSTED THE VALUE OF THE YEN STILL JAPAN'S TRADE SURPLUS WITH THE US REMAINS IMMENSE AT 494 BILLION LAST YEAR WHILE TRADE ANIMOSITIES HAVE DEEPENED THE ECONOMISTS HAVE NOW FIRED ABOUT EVERY ARROW IN THEIR QUIVER TO DEAL WITH STRUCTURAL PROBLEMS IN JAPAN AND IT'S AS BAD AS IT EVER WAS SAYS CHALMERS JOHNSON AN ASIA EXPERT AT THE UNIVERSITY OF CALIFORNIA WHO FAVORS MUCH TOUGHER ACTION AGAINST JAPAN SO IN INTERAGENCY DISCUSSIONS WHITE HOUSE ECONOMIST LAURA TYSON US TRADE REPRESENTATIVE MICKEY KANTOR AND COMMERCE DEPUTY SECRETARYDESIGNATE JOHN ROLLWAGEN PRESSED FOR A PLAN TO BOOST SPECIFIC INDUSTRIES AND BATTER JAPANESE TRADE BARRIERS WITHOUT SUCH HELP US BUSINESS LEADERS IN JAPAN COMPLAIN THE JAPANESE GOVERNMENT OR INDUSTRY GROUPS WILL FIND WAYS TO KEEP US COMPANIES OUT OF NEW SPENDING PROJECTS SUCH AS OPTICALFIBER TELECOMMUNICATIONS NETWORKS THE TREASURY WHICH IS ASCENDANT IN TRADE MATTERS AND HEADED THE INTERAGENCY REVIEWS HAS SIGNED ON TO THE PLAN THAT WILL BE PRESENTED TO MR MIYAZAWA TODAY ACCORDING TO WHITE HOUSE OFFICIALS THE US AND JAPAN WOULD PICK FEWER THAN A DOZEN INDUSTRIES OR AREAS SUCH AS ANTITRUST ENFORCEMENT FOR INTENSIVE NEGOTIATIONS US OFFICIALS WANT TO WORK OUT A TRADE AGENDA WITH JAPAN IN TIME FOR A SUMMIT OF THE MAJOR INDUSTRIALIZED COUNTRIES IN TOKYO BEGINNING JULY 7 THEN THE TWO SIDES WOULD BEGIN DETAILED NEGOTIATIONS TO MEASURE PROGRESS IN PARTICULAR INDUSTRIES THE TWO SIDES WOULD HAVE TO AGREE ON QUANTITATIVE GOALS DEADLINES AND REGULAR REVIEWS US OFFICIALS ACKNOWLEDGE THEY HAVE NO GUARANTEES THAT JAPAN WILL AGREE TO THIS NEW TRADE AGENDA AND ITS SKETCHINESS INDICATES THAT THE PROPOSAL HAS BEEN WORKED OUT ONLY IN THE PAST FEW DAYS BUT EVEN IF JAPAN DOES AGREE THE US FACES DOMESTIC POLITICAL STRAINS IN DECIDING WHICH INDUSTRIES TO PROMOTE AND HOW TO DO IT ROBERT LAWRENCE A HARVARD UNIVERSITY TRADE ECONOMIST SAYS IT'S CRUCIAL THAT INDUSTRIES BE SELECTED BY AN ANALYSIS OF WHICH ARE LIKELY TO HAVE THE GREATEST POTENTIAL FOR EXPORTS RATHER THAN ON THE BASIS OF POLITICAL LOBBYING SKILLS ONE TRADE OFFICIAL SAID THE TALKS WILL INCLUDE JAPANESE AUTOINDUSTRY PURCHASES OF USMADE AUTO PARTS AND JAPANESE GOVERNMENT PURCHASES OF COMPUTERS BECAUSE BOTH ARE ALREADY COVERED BY AGREEMENTS NEGOTIATED BY PRESIDENT BUSH FINANCIAL SERVICES ARE ANOTHER LIKELY CANDIDATE THE JAPANESE INSURANCE INDUSTRY IN PARTICULAR IS IN A BROAD REVAMPING THAT HAS CAUGHT THE EYE OF THE US TRADE REPRESENTATIVE SECRETARY OF STATE WARREN CHRISTOPHER PREVIEWED THE NEW TRADE PRESSURE THIS WEEK WHEN HE COMPLAINED TO JAPAN'S FOREIGN MINISTER THAT THE COMPUTERPROCUREMENT AGREEMENT MUST INCLUDE PERSONAL COMPUTERS AS WELL AS SUPERCOMPUTERS HARDLY THE SORT OF DISTINCTIONS THAT MATTERED TO A PREDECESSOR LIKE HENRY KISSINGER DURING HIS TALKS IN ASIA EQUALLY VEXING WILL BE DETERMINING A WAY TO MEASURE PROGRESS THE SEMICONDUCTOR AGREEMENT FOR INSTANCE MEASURES SALES IN JAPAN BY FOREIGNOWNED COMPANIES NO MATTER WHERE THE CHIPS ARE PRODUCED SO SALES BY TEXAS INSTRUMENTS INC'S JAPANESE SUBSIDIARY ARE COUNTED AS PROGRESS FOR THE US EVEN THOUGH THEY DON'T INCREASE US EXPORTS MEANWHILE THE AUTOPARTS ACCORD COUNTS ANY SALES BY USBASED COMPANIES EVEN IF THEY'RE OWNED BY JAPANESE COMPANIES BY THAT MEASUREMENT TRADITIONAL US SUPPLIERS AND THEIR WORKERS MAY NOT GET THE FULL BENEFIT OF THE AGREEMENT FOR THEIR PART THE JAPANESE HAVE DENOUNCED EFFORTS TO REQUIRE THEM TO SET ASIDE SPECIFIED MARKET SHARES FOR FOREIGNERS TO DEAL WITH THAT CONCERN US OFFICIALS SAID THEY MIGHT BE WILLING TO COUNT US EXPORTS OR THE NUMBERS OF JAPANESE DISTRIBUTORS SIGNED UP AS QUANTITATIVE MEASURES OF PROGRESS THE WHOLE CONCEPT OF QUANTITATIVE GOALS TROUBLES GARY HUFBAUER A FREEMARKET ECONOMIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS BECAUSE HE SAYS IT ENCOURAGES JAPANESE COMPANIES TO MERELY EXPAND CARTELS SO THEY INCLUDE A FEW FOREIGN COMPANIES THAT'S INIMICAL TO THE US AND JAPANESE ECONOMY IN THE LONG TERM HE SAID BUT US INDUSTRY HAS PUSHED HARD FOR NUMERICAL GOALS AND QUOTAS HIGHLIGHTING DISILLUSIONMENT IN WHAT HAD ONCE BEEN A STRONG CONSTITUENCY FOR FREE TRADE THE WHITE HOUSE SEEMS TO BE PATTERNING THE NEW EFFORTS AFTER A SIMILAR ROUND OF TRADE TALKS CONDUCTED IN THE MID1980S THEN THE US PRESSED JAPAN TO INCREASE IMPORTS OF TELECOMMUNICATIONS GEAR ELECTRONICS FOREST PRODUCTS MEDICAL EQUIPMENT AND PHARMACEUTICALS THOSE AGREEMENTS DIDN'T INVOLVE QUOTAS OR SET ASIDES FOR US PRODUCTS BUT THE TALKS ESTABLISHED PROCEDURES FOR REGULAR MONITORING OF JAPANESE COMMITMENTS SAYS MS TYSON THE WHITE HOUSE ECONOMIST IN A RECENT BOOK SHE PRAISES THE TRADE ROUND AS GOOD MODELS FOR FUTURE SECTORAL AGREEMENTS BETWEEN THE US AND JAPAN 9304160168 930416 EXPORTIMPORT BANK OF JAPAN SAYS LOANS HIT RECORD LAST YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO THE EXPORTIMPORT BANK OF JAPAN SAID THAT IT APPROVED 552 LOANS FOR A TOTAL OF 1914 TRILLION YEN 1681 BILLION IN THE FISCAL YEAR ENDED MARCH 31 EXCEEDING A RECORD 1694 TRILLION YEN SET IN FISCAL 1989 LOANS AWARDED WERE UP 29 FROM 1485 TRILLION YEN IN THE PREVIOUS FISCAL YEAR THE SHARP RISE FOR THE LATEST YEAR WAS TRACED TO STEEP GROWTH IN UNTIED DIRECT LOANS WHICH SHOT UP 130 TO 59864 BILLION YEN FROM 26021 BILLION YEN IN THE PREVIOUS FISCAL YEAR IT ALSO REFLECTED ENERGY RESOURCE LOANS TO CHINA AN INCREASE IN LOANS TO ARGENTINA AND LOANS TO EASTERN EUROPE COUNTRIES THE BANK SAID APPROVALS FOR OVERSEAS DIRECT INVESTMENT LOANS AT 39 THE LARGEST SHARE OF OVERALL COMMITMENTS ROSE 72 TO 7419 BILLION YEN FROM 69205 BILLION YEN THE YEAR BEFORE A BANK OFFICIAL SAID DISBURSEMENTS DURING THE LATEST YEAR WERE 1523 TRILLION YEN DOWN 10 FROM THE PREVIOUS FISCAL YEAR 9304160167 930416 WHO'S NEWS MADISON GROUP ASSOCIATES INC MADISON GROUP ASSOCIATES INC MIAMI RICHARD R DWYER JR 35 YEARS OLD WAS NAMED PRESIDENT OF THIS DIVERSIFIED COMPANY WITH INTERESTS IN THE MEDIA COMMUNICATIONS AND SPORTS EVENT PRODUCTION INDUSTRIES MR DWYER A FORMER SOVRAN FINANCIAL CORP EXECUTIVE WILL BE RESPONSIBLE FOR FINANCE AND ASSISTING WITH MERGERS AND ACQUISITIONS THE COMPANY SAID HE TAKES OVER THE DUTIES OF PRESIDENT FROM WILLIAM CRAIG WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9304160166 930416 TECHNOLOGY PROFIT AT TEXAS INSTRUMENTS ROSE IN QUARTER BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TEXAS INSTRUMENTS INC BENEFITING FROM A STRONG WORLD SEMICONDUCTOR MARKET SAID ITS NET INCOME MORE THAN DOUBLED IN THE FISCAL FIRST QUARTER ON AN 118 INCREASE IN REVENUE THE BIG DEFENSE AND ELECTRONICS CONCERN REPORTED NET OF 81 MILLION OR 85 CENTS A SHARE COMPARED WITH 40 MILLION OR 35 CENTS A SHARE A YEAR EARLIER TEXAS INSTRUMENTS' MOST RECENT RESULTS INCLUDE A CHARGE OF 4 MILLION OR FOUR CENTS A SHARE TO COVER CHANGES IN HOW IT ACCOUNTS FOR INCOME TAXES AND RETIREE HEALTHCARE COSTS REVENUE FOR THE QUARTER JUMPED TO 19 BILLION FROM 17 BILLION A YEAR AGO THE COMPANY ATTRIBUTED ITS STRONG SHOWING AND MOST OF ITS PROFIT TO A BOOMING BUSINESS IN SEMICONDUCTORS IT CITED A SHIFT TO HIGHERMARGIN PRODUCTS AND A HEALTHY WORLDWIDE CHIP MARKET WHICH IT SAYS SHOULD GROW BY ABOUT 17 THIS YEAR THE COMPANY SAID MARGINS IN ITS DEFENSE OPERATIONS WERE STABLE WHILE THE COMPANY'S INFORMATION TECHNOLOGY BUSINESS HAD A SMALL BUT UNDISCLOSED LOSS CHAIRMAN JERRY R JUNKINS IN REMARKS AT THE COMPANY'S ANNUAL MEETING SAID TEXAS INSTRUMENTS HAS BEEN HEARTENED BY A RECENT SURGE IN DEMAND FOR OLDER SOCALLED BIPOLAR SEMICONDUCTOR PRODUCTS THE DEVICES USED IN INDUSTRIAL EQUIPMENT AND OLDER TELECOMMUNICATIONS SYSTEMS HAD FALLEN OUT OF FAVOR WITH THE RISE OF NEWER CHIPS THAT USE AN ADVANCED MANUFACTURING PROCESS THIS IS THE EQUIVALENT OF GOING TO THE WAKE AND HAVING THE BODY SIT UP AND START SINGING MR JUNKINS SAID THOUGH THE COMPANY'S EARNINGS CAME IN WELL ABOVE MOST ANALYSTS' ESTIMATES THE COMPANY'S STOCK DROPPED 1125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TO CLOSE AT 5450 ANALYSTS NOTED THAT SHARES OF OTHER SEMICONDUCTOR COMPANIES ALSO HAVE FALLEN IN RECENT WEEKS PERHAPS IN ANTICIPATION OF THE INDUSTRY'S ANNUAL SUMMER SLUMP OTHER EXPERTS HAVE CAUTIONED THAT THE PAST YEAR'S BOOM IN PERSONAL COMPUTER SALES MAY BE SLOWING WHICH COULD CRIMP CHIP DEMAND THERE IS SOME KIND OF FEAR AMONG SEMICONDUCTOR INVESTORS SAID MONA ERAIBA A SEMICONDUCTOR ANALYST AT ATI FINANCIAL IN NEW YORK MAYBE ALL THE GOOD NEWS IS ALREADY REFLECTED INDEED SOME ON WALL STREET FEAR THAT TEXAS INSTRUMENTS SHIFT TOWARD SOCALLED DIFFERENTIATED SEMICONDUCTORS MAY BE KEEPING THE COMPANY FROM FULLY BENEFITING FROM THE PC BOOM THOUGH THE COMPANY IS STILL THE NATION'S BIGGEST PRODUCER OF DATASTORING DYNAMIC RANDOM ACCESS DRAM MEMORY CHIPS KEY PC COMPONENTS ITS EXPANSION EFFORTS HAVE FOCUSED ON OTHER DEVICES AS A RESULT ANALYSTS SAY TEXAS INSTRUMENTS MAY HAVE MISSED AN OPPORTUNITY TO CASH IN ON BLAZING DRAM DEMAND I THINK THEY ARE LEAVING SOME MONEY ON THE TABLE SAID WILLIAM J MILTON JR A TECHNOLOGY ANALYST AT BROWN BROTHERS HARRIMAN IN NEW YORK I ALWAYS APPLAUD COMPANIES THAT SACRIFICE THE SHORTTERM FOR THE LONGTERM BUT THIS COMPANY IS DOING IT IN SPADES 9304160165 930416 THE AMERICAS MEXICO'S PRI PLACES POLITICS ABOVE ACADEMIC EXCELLENCE BY ALISON GARDY ON THE THRESHOLD OF A FREE TRADE AGREEMENT WITH THE US AND CANADA PRESIDENT CARLOS SALINAS DE GORTARI HAS COMMITTED HIMSELF TO MODERNIZING MEXICO'S ECONOMY AND MAKING IT COMPETITIVE WITH ITS GIANT INDUSTRIAL NEIGHBORS TO THE NORTH BUT MEXICO'S DREAMS OF CONTENDING IN A FIRST WORLD ECONOMIC ARENA COULD BECOME MIRED IN A THIRD WORLD LEGACY OF SWOLLEN BUREAUCRACIES IN WHICH ADVANCEMENT OFTEN OCCURS ON THE BASIS OF PERSONAL LOYALTY INSTEAD OF QUALITY OF WORK NOTHING ELIMINATES COMPETITION AND UNDERMINES QUALITY MORE THAN PATRONAGE AND PERHAPS NOWHERE IS THIS BAD POLITICAL HABIT MORE DAMAGING TO MODERN MEXICO THAN IN ITS SCHOOLS WHERE THE SHAPING OF THE COUNTRY'S FUTURE LEADERS AND TECHNICIANS IS TAKING PLACE THE CLASSIC CASE IN POINT IS THE NATIONAL POLYTECHNIC INSTITUTE IPN ONE OF THE NATION'S MOST PROMINENT PUBLIC EDUCATION INSTITUTIONS WITH AN ENROLLMENT OF ABOUT 130000 IPN IS AN IMPRESSIVE NETWORK OF SECONDARY VOCATIONALTECHNICAL SCHOOLS AND SUPERIOR DEGREEPRODUCING SCHOOLS OF ECONOMICS BUSINESS ADMINISTRATION TOURISM MEDICINE AND THE NATURAL AND PHYSICAL SCIENCES IPN WAS FOUNDED IN 1936 ON THE PRINCIPLE THAT PROVIDING A FREE TECHNICAL EDUCATION TO THE CHILDREN OF WORKERS AND PEASANTS WOULD EVENTUALLY MAKE MEXICO TECHNOLOGICALLY SELFSUFFICIENT BUT OVER THE YEARS IPN STUDENTS CAME TO BE SEEN AS A RESERVE OF POLITICAL POWER BY BOTH POLITICAL AND PRIVATE INTERESTS THAT BEGAN VYING FOR THEIR LOYALTY WITH MONEY AND POLITICAL FAVORS MEXICO'S STUDENT MOVEMENT OF 1968 CULMINATED IN THE MASS MACHINEGUNNING OF PROTESTERS IN TLATELOLCO SQUARE FOLLOWING THIS BLOODY INCIDENT THE MEXICAN GOVERNMENT PAID SPECIAL ATTENTION TO CONTROLLING THE STUDENT SECTOR JUST AS IT EARLIER HAD CORRALLED THE PEASANT AND WORKER SECTORS INTO GOVERNMENTLINKED ORGANIZATIONS FORMER PRESIDENTS LUIS ECHEVERRIA WHO AS INTERIOR MINISTER IN 1968 SENT THE TROOPS TO TLATELOLCO SQUARE AND JOSE LOPEZ PORTILLO MET FREQUENTLY AND OPENLY WITH A NEW CADRE OF STUDENT LEADERS WHO WOULD KEEP THE RESTLESS IN LINE AND BE HANDSOMELY REWARDED FOR IT WHERE THE GOVERNMENT FAILED TO COOPT THERE WAS ALWAYS THE OPTION OF FORCE OFTEN EXERCISED THROUGH HIRED THUGS KNOWN AS PORROS WHO INFILTRATED THE SCHOOLS PORROS STILL EXIST TODAY THOUGH THEIR DEFINITION HAS BROADENED NOW THEY GENERALLY REFER TO REAL STUDENTS WHOSE ACTIONS RANGE FROM THE MILDLY MISCHIEVOUS STEALING PUBLIC BUSES FOR A JOY RIDE TO THE MAFIALIKE EXTORTION BEATINGS ASSASSINATIONS THEY OFTEN DO NOT ATTEND CLASS AND HAVE THEIR GRADES AND DEGREES ARRANGED AND THEY ENGAGE IN A CONTINUOUS OFTEN SUBTLE POWER PLAY OF INTERESTS WITH THE GOVERNMENT THE LARGEST STUDENT ORGANIZATION AND CONSEQUENTLY THE GREATEST HAVEN FOR PORROS IS THE FEDERATION OF POLYTECHNIC STUDENTS FEP WHOSE LEADERS ARE OFTEN MEMBERS OF THE RULING INSTITUTIONAL REVOLUTIONARY PARTY PRI THOUGH IT DENIES THE FEP OFFICIAL RECOGNITION OR OPEN FINANCING THERE ARE MANY SIGNS OF THE PRI'S HIDDEN HAND IN A SYSTEM THAT ALLOWS SCHOOL BULLIES TO ADVANCE OVER SCHOLARS WE CAN MOBILIZE 20000 STUDENTS ALL AT ONCE IF WE NEED TO SHOW SUPPORT FOR THE GOVERNMENT SAID 23YEAROLD ANGEL OCHOA PRESIDENT OF THE FEP MR OCHOA DENIED A LINK BETWEEN THE FEP AND THE GOVERNMENT BUT ADMITTED WE HAVE AN UNDERSTANDING HE ADDED WE'D JUST LIKE MORE OPEN SUPPORT FROM THE PRI OTHER STUDENTS SAY EVIDENCE OF SUCH SUPPORT IS NOT SO HIDDEN VANS WITH THE PRI LOGO STOP OUTSIDE THE SCHOOL AND DELIVER ENVELOPES TO THE FEP LEADERS SAID MIGUEL MONTEL AN IPN STUDENT ALSO MERCHANTS WHO SELL FOOD OUTSIDE THE SCHOOL GET THEIR PERMITS TO SELL FROM THE PRI BUT PAY THEIR FEES TO THE FEP MR MONTEL SAID THAT AS A YOUNG IPN STUDENT HE WANTED TO JOIN THE FEP BUT QUICKLY GREW DISILLUSIONED WHEN ITS LEADERS ENTERED A CLASSROOM DEMANDED STUDENTS PUT THEIR FEET UP ON THEIR DESKS AND PROCEEDED TO STEAL THEIR SNEAKERS SWEATERS AND WATCHES BEATING UP THOSE WHO RESISTED THE PORROS ALSO BULLIED STUDENTS INTO PAYING WEEKLY FEES FORCING SOME OF MR MONTEL'S FRIENDS TO LEAVE SCHOOL BECAUSE THEY COULD NOT AFFORD THE PAYMENTS THREE INDEPENDENT SOURCES CONFIRMED MR MONTEL'S STORY LUIS VALDIVIAS AN OUTSPOKEN OPPOSITION ORGANIZER AND CRITIC OF THE FEP SAID A POLITICAL LINK BETWEEN THE FEP AND THE PRI EXISTS VIA THE REVOLUTIONARY YOUTH FRONT A PRI YOUTH ORGANIZATION ANOTHER STUDENT ADDED THAT WHEN SHE FAILED THE IPN ENTRANCE EXAM THE FEP OFFERED HER AND OTHER STUDENTS PREP COURSES FOR A SECOND TRY THE FEP OBLIGED US TO JOIN THE FRONT AND EVEN PASSED OUT THE APPLICATIONS SHE SAID IF WE DIDN'T JOIN WE COULDN'T TAKE THE COURSE THE FEP ALSO SELECTS A PERCENTAGE OF MATRICULATING STUDENTS USUALLY COMPOSED OF FRIENDS OR POLITICAL ALLIES WE'D START THE SCHOOL YEAR WITH 40 OR 50 STUDENTS IN A CLASS SAID MR VALDIVIAS WHO GRADUATED IN 1991 IN A MONTH WE'D BE 60 TO 70 ABOUT ONETHIRD OF THE CLASS GOT IN THROUGH THE FEP OR ANOTHER STUDENT ORGANIZATION WHETHER THESE EXTRA STUDENTS ARE QUALIFIED TO ENTER IS LESS IMPORTANT THAN THE LOYALTY THEY ARE READY TO DEMONSTRATE TO THE FEP MR VALDIVIAS SAID THAT WHILE RECENTLY A SMALLER PERCENTAGE OF STUDENTS MATRICULATE IN THIS WAY THE PRACTICE STILL THRIVES MR VALDIVIAS AN ACTIVE SUPPORTER OF POLITICAL OPPOSITION LEADER CUAUHTEMOC CARDENAS SAID AUTHORITIES HAVE OFTEN TRIED TO BUY HIS SILENCE WHILE HE WAS STILL A STUDENT AN ADMINISTRATOR OFFERED HIM A TEACHING POSITION A COMMON WAY TO COOPT THE OPPOSITION OR REWARD AN ALLY FOR WHICH HE WOULD RECEIVE A FULL SALARY WITHOUT EVER HAVING TO TEACH A CLASS AFTER MR VALDIVIAS GRADUATED PRI OFFICIALS OFFERED HIM A POST IN MEXICO CITY'S GOVERNMENT PATRONAGE HAS BEEN USED TO ENSURE POLITICAL STABILITY IN MEXICO SINCE AZTEC AND COLONIAL TIMES FOR DECADES THE PRI HAS RELIED ON PATRONAGE FOR THE PERPETUATION OF ITS NOW 64YEAR RULE BUT WITH PRESSURES ON MEXICO BOTH TO MODERNIZE AND TO DEMOCRATIZE PATRONAGE CAN ONLY BE DESTABILIZING LEAVING MEXICO TOOTHLESS AND CLAWLESS IN THE RING OF FIRST WORLD COMPETITION WE'RE NOT PRODUCING TECHNICIANS AND SCIENTISTS OF THE HIGHEST LEVEL SAYS DANIEL RAMOS AN ECONOMICS PROFESSOR AND PRIZEWINNING RESEARCHER AT THE IPN WHO HAS BEEN THREATENED FOR CRITICIZING THE FEP ON THE CONTRARY WE'RE PRODUCING BUREAUCRATS WHO TALK MODERNIZATION BUT DON'T PRACTICE IT MS GARDY IS A WRITER COMPLETING A BOOK ON FAMILY LIFE IN MEXICO 9304160164 930416 WELLS FARGO CREDIT CARD OFFER SAN FRANCISCO WELLS FARGO & CO SAID IT WILL OFFER A CREDIT CARD ALLOWING HOLDERS TO LOWER THE COST OF GETTING A HOME LOAN FROM THE BANK THE BANK'S CALIFORNIA ADVANTAGE CARD PROVIDES A 5 REBATE ON CARD PURCHASES THAT CAN BE APPLIED TO POINTS AND FEES ON NEW MORTGAGES WRITTEN BY THE BANK FIRST MORTGAGES FOR PURCHASES AND REFINANCINGS ARE ELIGIBLE FOR REBATES 9304160163 930416 MONEYFUND ASSETS FELL IN THE LATEST WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS DECLINED 337 BILLION TO 58581 BILLION FROM 58918 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 632 RETAIL MONEYMARKET MUTUAL FUNDS DECREASED 17 BILLION TO 39143 BILLION THE TRADE GROUP SAID ASSETS OF 396 TAXABLE FUNDS IN THE RETAIL CATEGORY FELL 8932 MILLION TO 30856 BILLION ASSETS OF 236 RETAIL TAXEXEMPT FUNDS FELL 8028 MILLION TO 8287 BILLION ASSETS OF THE 263 INSTITUTIONAL MONEYMARKET FUNDS FELL 168 BILLION TO 19438 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 213 TAXABLE MONEYMARKET FUNDS FELL 127 BILLION TO 17387 BILLION ASSETS OF 50 TAXEXEMPT FUNDS FELL 4047 MILLION TO 2051 BILLION 9304160162 930416 ENTERPRISE RETIREE HEALTH COVERAGE ERODES AT SMALL MIDSIZE FIRMS SURVEY FINDS BENEFIT OFFERS DWINDLE OVER A YEAR OUTLOOK IS GRIM BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL BAD NEWS FOR WORKERS AT SMALL AND MEDIUMSIZED COMPANIES RETIREE HEALTH COVERAGE IS SLIPPING FAST AND IT'S LIKELY TO GET WORSE WHILE MUCH ATTENTION HAS FOCUSED ON LARGE COMPANIES THAT HAVE CUT RETIREE MEDICAL BENEFITS OR SHIFTED THEIR COSTS TO RETIREES A NEW REPORT SAYS THAT SMALLER AND MEDIUMSIZED CONCERNS ARE MAKING THE SHARPEST CUTBACKS FOR EXAMPLE AMONG COMPANIES WITH 200 OR MORE WORKERS BUT LESS THAN 1000 37 OFFERED RETIREE HEALTH BENEFITS IN 1992 DOWN FROM 44 IN 1991 RETIREE HEALTH BENEFITS AS AMERICANS HAVE KNOWN THEM ARE ERODING AND ERODING AT A CONSIDERABLE PACE AND IN MANY WAYS CONCLUDES KPMG PEAT MARWICK THE BIG ACCOUNTING FIRM THAT PRODUCED THE REPORT WHICH IS TO BE PUBLISHED NEXT WEEK IT'S BASED ON INTERVIEWS WITH HUMAN RESOURCE DIRECTORS FROM 1057 PRIVATE AND PUBLICLY OWNED CONCERNS SELECTED AT RANDOM CUTBACKS ARE NO SURPRISE WITH SHARPLY RISING MEDICAL COSTS AND NEW ACCOUNTING RULES FORCING COMPANIES TO RECORD LIABILITIES FOR RETIREE HEALTH BENEFITS ON THEIR BALANCE SHEETS BUT THE EXTENT OF THE CUTS IS SURPRISING PARTICULARLY AMONG THE SMALLER CONCERNS KPMG PEAT MARWICK SAYS THAT IN THE MID1980S MORE THAN 60 OF COMPANIES WITH 500 TO 999 WORKERS PROVIDED RETIREE BENEFITS ALTHOUGH THE ACCOUNTING RULE FINANCIAL ACCOUNTING STANDARDS NO 106 PROVIDES THE IMPETUS FOR THE CUTS OUTOFCONTROL HEALTH COSTS ARE THE MOST IMPORTANT REASON SAYS JAMES BUCKLEY PARTNER IN CHARGE OF GROUP BENEFITS AT PEAT MARWICK PERHAPS SURPRISINGLY THE REPORT SAYS THAT THE PORTION OF LARGE COMPANIES THOSE WITH 5000 OR MORE EMPLOYEES OFFERING RETIREE HEALTHCARE BENEFITS REMAINED STEADY AT 72 BETWEEN 1991 AND 1992 WHILE THIS PARTLY REFLECTS THE FACT THAT SOME OF THESE FIRMS ACTED EARLIER TO REIN IN THEIR BENEFITS PEAT MARWICK ACKNOWLEDGES THAT SOME BIG CONCERNS MADE CUTBACKS AFTER ITS SURVEY WAS CONDUCTED BENEFITS EXPERTS ALSO NOTE THAT SMALLER COMPANIES OFTEN HAVE MORE FREEDOM TO MAKE THE CUTBACKS THAN LARGER CONCERNS WHICH OFTEN FACE RESISTANCE AND COURT FIGHTS FROM UNIONIZED WORKERS SMALLER CONCERNS ALSO MIGHT HAVE LESS OF A CUSHION TO SOFTEN THE BLOW OF A HUGE WRITEOFF IN SOME CASES EMPLOYERS HAVE FOUND THAT THE ONETIME CHARGE FOR THE HEALTHCARE COSTS OF PRESENT AND FUTURE RETIREES WOULD WIPE OUT THEIR NET WORTH OR ASSETS MINUS LIABILITIES COMPANIES AREN'T OUT THERE TRYING TO RIP PEOPLE OFF SAYS CHRISTOPHER BOWLIN A BENEFITS SPECIALIST AT THE NATIONAL ASSOCIATION OF MANUFACTURERS IN MANY CASES IT BOILS DOWN TO FINANCES PEAT MARWICK'S MR BUCKLEY PREDICTS THAT AS EMPLOYERS CONTINUE TO GAUGE THE EXTENT OF THEIR LIABILITIES FOR RETIREE HEALTH CARE THE PORTION OF SMALLER COMPANIES OFFERING RETIREE COVERAGE COULD SLIP TO LESS THAN 25 IN THE NEXT FEW YEARS INDEED MANY CLOSELY HELD COMPANIES WITH 500 OR FEWER PARTICIPANTS IN THEIR PLAN HAVE YET TO FACE UP TO THEIR RETIREE HEALTH LIABILITIES THEY DON'T HAVE TO ADOPT THE NEW ACCOUNTING STANDARD UNTIL 1995 FOR RETIREES WHO ARE AGE 65 AND OLDER AND THUS ELIGIBLE FOR MEDICARE COVERAGE THE LOSS OF COMPANY BENEFITS CAN LEAVE SIGNIFICANT GAPS MEDICARE DOESN'T COVER PRESCRIPTION DRUGS FOR EXAMPLE BUT THE CUTBACKS ARE PARTICULARLY FRIGHTENING FOR EARLY RETIREES A CUTOFF OF COMPANY BENEFITS FORCES THEM TO SEEK THEIR OWN COVERAGE WHICH IN MANY CASES IS UNAVAILABLE OR TOO EXPENSIVE PEAT MARWICK NOTES THAT ADMINISTRATIVE EXPENSES ARE SIGNIFICANTLY HIGHER FOR AMERICANS BUYING INDIVIDUAL COVERAGE THAN EMPLOYERS BUYING GROUP COVERAGE BENEFITS EXPERTS SAY THE STRONG TREND TOWARD LESS EMPLOYER COVERAGE FOR RETIREES PRESENTS A DILEMMA FOR THE CLINTON ADMINISTRATION AS IT TRIES TO COME UP WITH A COMPREHENSIVE HEALTHCARE REFORM PACKAGE FOR EXAMPLE IF THE GOVERNMENT ADOPTS A PACKAGE THAT INCLUDES UNIVERSAL COVERAGE THAT OBVIOUSLY WOULD HELP RETIREES WHO HAVE ALREADY SEEN THEIR COMPANYPAID BENEFITS ELIMINATED BUT IF UNIVERSAL COVERAGE IS ADOPTED ALL OF A SUDDEN THERE'S A TREMENDOUS INCENTIVE FOR MORE COMPANIES TO DROP THEIR OWN COVERAGE OF RETIREES WARNS JON GABEL PEAT MARWICK'S DIRECTOR OF EMPLOYEE BENEFITS RESEARCH WHILE THAT COULD SIGNIFICANTLY RAISE THE COST OF UNIVERSAL COVERAGE OTHERS SAY THE GOVERNMENT MIGHT TRY TO COME UP WITH A WAY TO ENCOURAGE COMPANIES TO KEEP INSURING THEIR RETIREES BUT THE BENEFITS EXPERTS INCLUDING THOSE WHO HAVE SPOKEN WITH MEMBERS OF HILLARY RODHAM CLINTON'S HEALTHREFORM TEAM SAY IT'S UNCLEAR WHAT WILL BE DONE TO RESOLVE THE GROWING PROBLEMS OF RETIREES SO FAR I'VE HEARD VERY LITTLE DISCUSSION OF THE ISSUE SAYS SCOTT MACEY EXECUTIVE VICE PRESIDENT OF ACTUARIAL SCIENCES ASSOCIATES A BENEFITSCONSULTING UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO THE KPMG PEAT MARWICK REPORT ALSO SHOWS HOW RETIREES ARE BEING PINCHED AT COMPANIES THAT HAVEN'T ELIMINATED BENEFITS FOR EXAMPLE IT FOUND THAT THE PORTION OF THE HEALTHINSURANCE PREMIUM PAID BY RETIREES 65 AND OLDER FOR FAMILY COVERAGE JUMPED TO 41 LAST YEAR FROM 23 IN 1988 THERE APPEAR TO BE FEW FORCES LIKELY TO REVERSE THE WITHERING OF RETIREE HEALTH BENEFITS THE REPORT SAYS 9304160161 930416 LEISURE & ARTS ON SPORTS BACKYARD CLASSIC BY FREDERICK C KLEIN SPRING IS TAKING ITS TIME ARRIVING IN NORTHERN CLIMES THIS YEAR BUT ON THE OCCASIONAL NICE DAY ITS FIRST SIGNS CAN BE SEEN JOGGERS WEARING SHORTS ELBOWS PROTRUDING FROM CAR WINDOWS AND THE MUTED CRACK OF BATS AGAINST WIFFLE BALLS THAT'S RIGHT WIFFLE BALLS I DON'T KNOW HOW MANY BASEBALLS OR SOFTBALLS AMERICANS OWN BUT I'D BE WILLING TO WAGER THERE ARE AT LEAST AS MANY WIFFLE BALLS IN CIRCULATION AN INVENTORY OF MY OWN BASEMENT BALL BOX REVEALED ONE BASEBALL ONE SOFTBALL OF THE 16INCH VARIETY CHICAGO'S UNDERAPPRECIATED GIFT TO THE WORLD OF SPORTS AND TWO WIFFLE BALLS THOSE NUMBERS WOULD HAVE BEEN HIGHER WHEN MY CHILDREN AND I WERE OF BALLPLAYING AGE BUT I'M CERTAIN THE PROPORTION WOULD HAVE BEEN ABOUT THE SAME WHILE BASEBALL AND SOFTBALL ARE GAMES FOR LARGE FIELDS AND MANY PLAYERS THE HOLLOW PLASTIC WIFFLE BALL CAN BE USED BY ANY NUMBER ALMOST ANYWHERE EVEN IN THE VICINITY OF WINDOWS THAT HAS MADE IT THE NATION'S BACKYARD FAVORITE MOREOVER BECAUSE OF ITS DESIGN IT CAN MAKE ANYONE LOOK GOOD IF YOU CAN THROW OVERHAND YOU CAN MAKE A WIFFLE BALL CURVE BIG TIME AND HEY IF THE SPHEROID GETS AWAY FROM YOUR CATCHER IT DOESN'T GO FAR THE MARVELOUSNESS OF THE WIFFLE BALL HAS BEEN CONFIRMED BY NO LESS THAN PLAYBOY MAGAZINE WHICH A FEW YEARS BACK INCLUDED IT ALONG WITH THE LIKES OF MONOPOLY THE ZIPPO LIGHTER AND THE LONGNECKED BEER BOTTLE IN A LIST OF CLASSIC AMERICAN PRODUCTS IT IS TIMELY TO LOOK AT THE WIFFLE BALL BECAUSE THIS SUMMER WILL MARK ITS 40TH BIRTHDAY ITS INVENTOR WAS DAVID N MULLANY OF FAIRFIELD CONN HE'D QUIT HIS JOB AS A PURCHASING AGENT FOR MCKESSONROBBINS THE PHARMACEUTICAL COMPANY TO START A FIRM THAT MANUFACTURED AUTO POLISH BUT THE ENTERPRISE WAS FAILING THE EVENING IN 1953 HE RETURNED HOME TO FIND HIS 13YEAROLD SON DAVID A IN HIS BACKYARD WITH ANOTHER BOY ENGAGED IN A BASEBALLLIKE GAME WITH A PLASTIC GOLF BALL AND BROOMSTICK FACING IMMINENT UNEMPLOYMENT AND THINKING IT WOULD BE NICE IF A MORE REALISTIC BASEBALL SUBSTITUTE COULD BE MADE THE ELDER MULLANY SET ABOUT FASHIONING A PLASTIC BALL THAT WOULD BEHAVE LIKE THE REAL THING WEEKS OF KITCHENTABLE PUTTERING WITH PLASTIC HALFSPHERES USED TO SHIP PERFUME BOTTLES PRODUCED NUMEROUS PROTOTYPES CULMINATING IN THE ONE THAT WAS TO EMERGE WITH ITS EIGHT EQUIDISTANT ELONGATED HOLES IN THE SAME HALF DAD AND I PLAYED WITH IT AND IT CURVED BETTER THAN THE REAL THING RECALLS DAVID A NOW 52 YEARS OLD AND PRESIDENT OF WIFFLE BALL INC IN SHELTON CONN I DIDN'T KNOW THE WHYS OF IT THEN AND STILL DON'T AS LONG AS IT WORKS WHO CARES MR MULLANY SAYS THAT THE WIFFLE BALL NAME ALSO WAS A FATHERSON CONCOCTION WHEN YOU STRIKE OUT YOU WHIFF' AND YOU ALSO SMELL BUT NEITHER OF US WAS VERY GOOD AT SPELLING HE EXPLAINS PRODUCT AND NAME WERE DULY PATENTED AND TRADEMARKED BUT IT WOULD BE ANOTHER YEAR BEFORE THE MARKET WELCOMED THE WIFFLE BALL THE BREAKTHROUGH CAME WHEN WIFFLE BALL'S SALES REP WOOING A MAJOR RETAIL CHAIN THOUGHT TO BOUNCE ONE OF HIS SAMPLES OFF THE BUYER'S OFFICE WINDOW TO SHOW THE WINDOW WOULDN'T BREAK THE COMPANY DOESN'T GUARANTEE THAT ITS BALLS WON'T BREAK WINDOWS MR MULLANY NOTES THAT A PANE IN HIS PLANT RECENTLY WAS SHATTERED DURING A GAME OF CATCH BETWEEN WORKERS BUT MAINTAINS THAT SUCH INSTANCES ARE RARE MR MULLANY'S FIRM WHICH NOW INCLUDES HIS SONS DAVID J 27 AND STEPHEN 26 MAKES A SIZABLE LINE OF PLASTIC GAME PRODUCTS IN ITS SMALLISH SHELTON FACTORY BUT WIFFLE BALLS IN 12INCH SOFTBALL BASEBALL AND JUNIOR SIZES AND THE HOLLOW PLASTIC BATS MADE TO ACCOMPANY THEM ACCOUNT FOR THE LARGE MAJORITY OF ITS SALES AND WHILE HE WON'T BE SPECIFIC ABOUT UNIT OR DOLLAR VOLUME HE WILL SAY THAT MANY MILLIONS OF THE BALLS HAVE BEEN AND ARE BEING SOLD WE USED TO PAY BIGLEAGUE PLAYERS FOR ENDORSEMENTS BUT STOPPED SOME YEARS AGO WHEN THEIR MONEY DEMANDS BECAME EXCESSIVE SAYS THE EXECUTIVE I CONSIDER IT A MARK OF OUR ACCEPTANCE THAT OUR SALES HAVEN'T SUFFERED A BIT IN THEIR ABSENCE ONE OF THE REASONS THE WIFFLE BALL HAS BECOME A US STAPLE IS ITS PRICE AT 95 CENTS FOR THE JUNIOR SIZE 105 FOR THE BASEBALL SIZE AND 130 FOR THE SOFTBALL SIZE IT IS CHEAP BY ANY STANDARD ANOTHER REASON IS THEIR VERSATILITY THERE ARE DOZENS OF WAYS IN WHICH THEY CAN BE EMPLOYED MOSTLY WIFFLE BALLS ARE USED IN IMPROMPTU GAMES OF PITCH AND HIT BUT SOME VARIETIES INVOLVE FIELDERS BASES AND BASERUNNING ONE MAN WHO LIVES NEAR BOSTON BUILT A BACKYARD REPLICA OF FENWAY PARK IN WHICH TO DISPLAY HIS WIFFLE BALLPITCHING WIZARDRY TONY LUCCADELLO THE LATE PHILADELPHIA PHILLIES SCOUT RECOMMENDED THAT BASEBALL COACHES OR DADS ACQUIRE A BAG OF WIFFLE BALLS AND KNEELING SAFELY TO THE SIDE TOSS THEM UNDERHANDED TO A PUPIL OR SON WIELDING A REGULATION BASEBALL BAT LUCCADELLO SAID THE EXERCISE WOULD IMPROVE THE HITTER'S SWING AND TIMING WITHOUT THE SPECIAL SCREEN OR LABORIOUS PICKUP REQUIRED WHEN REAL BASEBALLS ARE USED MR MULLANY SAYS THE WIFFLE BALL HAS SERVED HIM AND HIS FAMILY WELL OVER THE YEARS BUT NOTES THAT FOR A BUSINESSMAN THE PRODUCT HAS A DRAWBACK ITS NEAR INDESTRUCTIBILITY OTHER THAN BY PEOPLE LOSING THEM OR DOGS CHEWING THEM UP THEY ALMOST NEVER NEED TO BE REPLACED HE SAYS IF SALES EVER DROP OUR ONLY RECOURSE WOULD BE TO MAKE 'EM WITH DOGFOODFLAVORED PLASTIC 9304160160 930416 RUSSIA'S PULSE YELTSIN'S HOMETOWN WRITHES WITH CHANGE AS REFERENDUM NEARS GOODS REAL OR COUNTERFEIT CROWD A SIDEWALK BAZAAR AS NEW WORRIES INTRUDE MS TINKOVA TRIES RETAILING BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL YEKATERINBURG RUSSIA THE FIRST SNICKERS BARS WERE SIGHTED ON SVERDLOV STREET ABOUT A YEAR AGO MARS AND BOUNTY SOON FOLLOWED THEN CAME REEBOK SNEAKERS EGYPTIAN ORANGES POLISH VODKA TINS OF NESCAFE CHINESE UNDERWEAR AND THE OCCASIONAL PACKETS OF TASTY BITE INSTANT GOULASH FROM INDIA NO WATER NEEDED AFTER YEARS OF EMPTY TALK ABOUT ECONOMIC REFORM REAL TANGIBLE CHANGE IS FINALLY COMING TO YEKATERINBURG A SHABBY CENTER OF ARMS PRODUCTION IN THE DECAYING INDUSTRIAL HEARTLAND OF RUSSIA THE PLACE WHERE THE LAST CZAR WAS EXECUTED AND WHERE BORIS YELTSIN WAS BORN EIGHTEEN MONTHS AGO IT BORE TESTIMONY TO THE FAILURES OF THE SOVIET SYSTEM EGGS SAUSAGE MARGARINE SUGAR AND EVEN CIGARETTES WERE RATIONED SLOWMOVING VODKA LINES SNAKED THROUGH THE CITY CENTER FACTORIES WERE GRINDING TO A HALT IMPORTS WERE THE STUFF OF DREAMS RATIONING NO LONGER EXISTS AND THE ONLY LINES TODAY ARE OF PEOPLE HAWKING WARES ON THE STREETS EVERYTHING FROM VACUUM CLEANERS TO BLOODY LEGS OF PORK IN PLASTIC BAGS MAKESHIFT KIOSKS HAVE BEEN PLOPPED DOWN ON EVERY CORNER SHOE STORES SELL TOOTHPASTE AND TINNED PEACHES THE FIRST SEX SHOP HAS JUST OPENED NEAR THE FIRST CASINO BUT YEKATERINBURG ISN'T PARIS IT HAS A LONG WAY TO GO EVEN TO CATCH UP WITH MOSCOW 1000 MILES AWAY TO THE WEST WHERE CHIQUITA BANANAS ARE NOW EASIER TO FIND THAN LENIN'S WORKS TO MANY PEOPLE HERE THE CANDY BARS AND OTHER FRUITS OF ECONOMIC REFORMS BARELY SWEETEN THE BITTERNESS OF UNFAMILIAR NEW HARDSHIPS FOR MR YELTSIN FACING A REFERENDUM ON HIS FUTURE AND THAT OF THE REFORMS APRIL 25 THE QUESTION IS WHICH WILL WEIGH MORE HEAVILY IN VOTERS' MINDS THE HOPE EVIDENT IN THE BURST OF CONSUMER GOODS OR THE DISLOCATION AND ANXIETY THAT THE ABRUPT CHANGES IMPOSE THE RUSSIAN PRESIDENT REMAINS A LOCAL HERO IN YEKATERINBURG ONCE CALLED SVERDLOVSK BUT HIS POPULARITY HAS DROPPED FROM HIS PAST 90PLUS APPROVAL ACKNOWLEDGING THE HARDSHIPS HE IS COUNTING ON A PUBLIC REALISM ABOUT THE HERCULEAN TASK REFORMERS FACE AND PLAYING ON THE VERY REAL FEARS OF WHAT COULD HAPPEN IF THEY FAIL THERE IS NO GOOD OPTION IN THE REFERENDUM IT'S A CHOICE BETWEEN A BAD OPTION AND CATASTROPHE SAYS VITALY MASHKOV A FORMER SECURITY OFFICER AT A URANIUMPROCESSING PLANT WHOM MR YELTSIN PICKED AS HIS REPRESENTATIVE IN THE REGION MR MASHKOV ESTIMATES THAT 40 OF CITIZENS REMAIN UNDECIDED ON HOW TO VOTE IN THE REFERENDUM WHICH WILL ASK THEM WHETHER THEY TRUST MR YELTSIN WHETHER THEY APPROVE HIS POLICIES AND WHETHER THEY WANT NEW ELECTIONS FOR THE PRESIDENCY AND PARLIAMENT HE UNDERSTANDS THEIR HESITATION WE ARE NOT EXPERIMENTING ON CATS AND DOGS BUT ON PEOPLE HE SAYS GRIMLY IT'S LIKE A SURGEON WORKING WITHOUT ANESTHETIC THE OLD DAILY STRUGGLE FOR FOOD HAS BECOME A DAILY STRUGGLE WITH PRICES BREAD AND MILK ARE A HUNDRED TIMES MORE EXPENSIVE THAN 18 MONTHS AGO AND WOULD COST EVEN MORE BUT FOR SUBSIDIES THAT EAT UP THE CITY'S BUDGET INDUSTRY HAS LAPSED INTO ANARCHY WHILE THE GRIME AND BUREAUCRACY OF THE SOVIET ERA REMAIN BUT WHERE CHANGE HAS COME IT EXTENDS FAR BEYOND THE RANGE AND PRICE OF GOODS FOR SALE PEOPLE NOW FACE A FUNDAMENTAL CHOICE IN A SOCIETY WHERE CHOICE AND OPPORTUNITY USED TO BE THE SCARCEST COMMODITIES OF ALL SHOULD THEY TRY TO LIVE AS BEFORE EVEN THOUGH THE OLD CERTAINTIES OF LIFE UNDER COMMUNISM HAVE GONE OR SHOULD THEY EMBRACE THE NEW SNICKERS ERA WITH A NEW SPIRIT MANY OF THOSE DARING TO TAKE RISKS ARE ALREADY REAPING THE REWARDS FLEXIBILITY IT TURNS OUT IS REPLACING PATIENCE AS THE KEY TO SURVIVAL AND THE MAIN HOPE FOR A NEW PROSPERITY YOU ONLY LIVE ONCE AND I WANTED TO LIVE BEFORE I JUST USED TO EXIST SAYS SVETLANA TINKOVA SHE IS THE CURLYHAIRED DEPUTY MANAGER OF OASIS A NEW STORE THAT OPENED ON SVERDLOV STREET TWO MONTHS AGO FOR 11 YEARS BEFORE THAT SHE TAUGHT AT A SECONDARY SCHOOL THEN SHE REALIZED IT WAS NOW OR NEVER SO SHE JUMPED SHE NIBBLES CHOCOLATE IN THE BACK ROOM OF THE FORMER STATEOWNED FLOWER STORE THAT SHE AND TWO FRIENDS HAVE TAKEN OVER MAKING SNAP PURCHASING DECISIONS A WOMAN SELLING CHANDELIERS FROM A CATALOG IS TOLD TO COME BACK LATER WITH SOME SAMPLES SHE BUYS A STOCK OF PALL MALL CIGARETTES BUT SENDS AWAY A MAN IN A SHINY LEATHER COAT CARRYING CARTONS OF OVERPRICED CAMELS SOFT PACKS DON'T SELL WELL WE ONLY TAKE HARD PACKS MS TINKOVA TELLS HIM FIRMLY IRINA DEMENSHINA SITS NEXT TO HER WATCHING WITH A TOUCH OF ENVY SHE IS A FRIEND FROM SCHOOL WHO CARRIED ON WORKING AS A TEACHER SHE NOW STRUGGLES ON HER SMALL SALARY WONDERING WHETHER SHE MADE THE RIGHT CHOICE MS TINKOVA SHRUGS THERE IS A GROWING GULF BETWEEN RICH AND POOR AND THE RICH WILL GET RICHER SHE SAYS MATTEROFFACTLY WE ARE RETURNING TO THE CONDITIONS IN WHICH NORMAL COUNTRIES LIVE IN FACT THERE IS LITTLE NORMAL ABOUT THE CONDITIONS THE STORE OR THE CITY WORKS UNDER THE AREA FACES A HUGE CRIME WAVE ROBBERY AND MURDER HAVE GROWN SO COMMON THAT THEATERS START PERFORMANCES AT 6 PM SO PEOPLE CAN GET HOME BEFORE DARK WORST OF ALL FOR ENTREPRENEURS IS THE PROTECTION MONEY DEMANDED BY THE RACKETEERS WHO CONTROL THE CITY'S BUSINESS WITH BRUTE FORCE THEN THERE ARE THE PRICES OF THINGS THE RENT RISES EVERY MONTH AND NOBODY CAN HAZARD A GUESS ABOUT HOW MUCH NEXT MONTH'S WILL BE OVERHEAD INCLUDES A BEWILDERING ARRAY OF TAXES AS WELL AS BRIBES TO CITY OFFICIALS FOR A LIQUOR LICENSE AND PERMISSION TO OPEN A SMALL KIOSK OUR FIRST SUBSIDIARY MS TINKOVA EXULTS A SIXMONTH SUBSCRIPTION TO THE YEKATERINBURG'S EVENING PAPER COST 240 RUBLES FOR THE FIRST HALF OF THIS YEAR FOR THE SECOND HALF IT IS 1800 RUBLES YAKOV OLKHOV SAYS HE STILL GASPS FOR BREATH WHEN HE SEES CUCUMBERS FOR SALE AT 300 RUBLES A KILOGRAM A MONTH'S WAGES FOR A WORKER IN THE OLD USSR HE IS 59 YEARS OLD AN ENGINEERING PROFESSOR AT THE URALS POLYTECHNICAL INSTITUTE AND AN OLD PERSONAL FRIEND OF MR YELTSIN HE USED TO BE RELATIVELY WELL PAID EARNING ABOUT 1500 RUBLES A MONTH THE GOVERNMENT NOW TIES PUBLICSECTOR SALARIES TO THE RATE OF INFLATION PROF OLKHOV'S FEBRUARY PAYCHECK WAS 25000 RUBLES IN MARCH IT WAS 50000 RUBLES ENOUGH TO BUY CUCUMBERS BUT STILL ONLY 70 AT THE PLUMMETING EXCHANGE RATE THE MOOD AT HIS INSTITUTE IS BLEAK CONSTRUCTION ENGINEERS USED TO BE AN ELITE NOW CAMEL SALESMEN ARE ONE FIFTH OF THE STAFF THE BRIGHTEST AND YOUNGEST HAS LEFT TO GO INTO PRIVATE BUSINESS THOSE WHO REMAIN ARE BITTER AT THE NEWFOUND PROSPERITY OF THEIR FORMER COLLEAGUES THE NUMBER OF STUDENTS IS FALLING AND THE INSTITUTE IS TRYING TO PERSUADE LOCAL FACTORIES TO MAKE VOLUNTARY DONATIONS TO KEEP IT RUNNING WE HAVEN'T YET GONE OVER TO A CIVILIZED MARKET SYSTEM PROF OLKHOV SAYS APOLOGETICALLY IT'S A BAZAAR WHATEVER IT IS EVEN SOME OF THE BUREAUCRATS WHO USED TO RUN THE CITY WITH A RIGIDITY BORDERING ON ABSURDITY ARE LEAPING TO EMBRACE IT BACK IN THE USSR GENNADY P YASHIN HAD A SOARING CAREER IN THE COMMUNIST PARTY BECOMING YEKATERINBURG'S SECRETARY OF IDEOLOGY AND PROPAGANDA IN HIS EARLY 40S TODAY HE IS PRESIDENT OF THE NEW HARDCURRENCY EXCHANGE WHICH ARRANGES AUCTIONS OF DOLLARS FOR LOCAL BANKS AND TAKES A CUT HOW DOES IT WORK THE DOLLAR IS HIGH BECAUSE SUPPLY IS LESS THAN DEMAND HE SAYS WITH ALL THE PEDANTRY HE LEARNED IN HIS OLD JOB IF SUPPLY IS GREATER THEN THE DOLLAR WILL FALL SO FAR THAT HASN'T HAPPENED MR YASHIN CLAIMS TO BE A CHANGED MAN THE STANDARD GRAY POLYESTER SUIT HAS BEEN REPLACED BY AN OPENNECKED IMPORTED SHIRT AND HIS OFFICE IS CRAMMED WITH JAPANESE ELECTRONIC EQUIPMENT HE WILL SOON VISIT GERMANY TO TOUR REGIONAL STOCK MARKETS MY OLD WORK WAS NOT EASY BUT ALL WAS STABLE MR YASHIN SAYS THIS JOB IS MORE COMPLEX I DON'T SAY I LIKE IT BUT IT'S INTERESTING HIS TRANSFORMATION IS A LITTLE SUSPECT BEFORE ITS DEMISE THE COMMUNIST PARTY ISSUED A SECRET INSTRUCTION TO ITS CADRES TO GET INVOLVED IN CAPITALIST STRUCTURES MR YASHIN SAYS HE NEVER HEARD OF THE INSTRUCTION BUT SWITCHED JOBS TO MAKE ROOM FOR A NEW GENERATION ANYWAY HE ADDS MY WIFE TELLS ME IT'S IN MY HOROSCOPE TO BE A BANKER THE INDUSTRY OF YEKATERINBURG HAS LONG BEEN DOMINATED BY MILITARY PRODUCTION IT IS TOO BIG TO SHUT DOWN EVEN THOUGH ORDERS HAVE DRIED UP PLANTS ARE TRYING TO RESTRUCTURE BUT THE QUESTION IS HOW ONE WAY IS BEING PURSUED BY THE PRIDE OF THE CITY THE URALMASH WORKS THE SPRAWLING INSTALLATION PLAYED A KEY ROLE IN STALIN'S INDUSTRIALIZATION AND ITS TANKS AND TURBINES HELPED KEEP HITLER AT BAY MR YELTSIN HIMSELF ONCE WORKED HERE URALMASH ALSO MAKES BLAST FURNACES QUARRY EXCAVATORS AND ANY OTHER HEAVY EQUIPMENT BUT DEMAND FOR THEM IS OFF TOO STRUGGLING TO REDEFINE ITSELF IT HAS SPUN OFF SEVERAL OF ITS FACTORIES AS SEPARATE ENTITIES AND PARED ITS 50000STRONG WORK FORCE THIS MONTH IN A QUIET REVOLUTION REMAINING WORKERS WERE INVITED TO INVEST IN THE CONGLOMERATE WITH CASH AND PRIVATIZATION VOUCHERS FROM THE GOVERNMENT THE OFFERING WAS FIVE TIMES OVERSUBSCRIBED TO CONTROL WAGES URALMASH ALSO HAS CONCLUDED A SIXMONTH LABOR CONTRACT WITH UNIONS THAT TIES PAY SCALES TO INFLATION OLD STRUCTURES BUT SOME THINGS ARE SLOW TO CHANGE THE CONGLOMERATE IS SO MUCH OF A LOCAL INSTITUTION THAT IT HAS ENDED UP MANAGING 62 KINDERGARTENS A HOSPITAL A LARGE CHUNK OF YEKATERINBURG'S CONCRETE PUBLIC HOUSING AND UNTIL RECENTLY TWO FARMS BECAUSE OF A REGULATION DATING BACK TO THE 1920S URALMASH CAN'T CHARGE MORE THAN TOKEN RENTS ITS LOSSES ON HOUSING ALONE WILL BE 15 BILLION RUBLES THIS YEAR AND INSIDE THE DANK CLANKING SHOPS IT'S APPARENT THAT URALMASH HAS BARELY STARTED THE HARDEST TASK MODERNIZING OUTPUT ALL PRODUCTION IS ONLY OF THE HIGHEST QUALITY READS ONE SLOGAN IN SHOP 48 WHERE MEN AND WOMEN WEARING SCANT SAFETY CLOTHING WELD HUGE PIECES OF METAL BY HAND INTO A MAMMOTH EXCAVATOR ALONG ONE WALL NEXT TO A NOTICE URGING WORKERS TO BUY COMPANY STOCK IS A TALLY OF THE NUMBER OF FINGERS AND LEGS LOST TO ACCIDENTS WHILE URALMASH TAKES THE HARD ROUTE OTHERS ARE CHOOSING AN EASIER WAY TO SURVIVE CORRUPTION THE URALS ARE RICH IN MINERALS AND METALS THAT ARE IN DEMAND ABROAD SOME PEOPLE TAKE BLATANT ADVANTAGE OF IT THE DEPUTY DIRECTOR OF A STATEOWNED PLANT THAT MAKES PYLONS COMPLAINS BITTERLY THAT HIS BOSS IS TAKING STEEL AND BARTERING IT FOR LINEN FROM CHINA SOME OF THESE GOODS ARE GIVEN TO WORKERS IN LIEU OF WAGES AND THEY THEN SELL THEM ON THE STREET BUT MOSTLY THE ITEMS ARE TRADED THROUGH THE NEW COMMERCIAL STORES HE SAYS WITH HIS BOSS POCKETING THE PROFIT PARTLY AS A RESULT INDUSTRIAL PRODUCTION AT THE PLANT HAS PLUNGED BY 50 IN A YEAR OTHERS CONFIRM THAT SUCH PRACTICES ARE WIDESPREAD THE MAJORITY OF ENTERPRISES THAT CAN PRODUCE SEMIFINISHED PRODUCTS SELL FOR BARTER AND IT'S DESTROYING THE ECONOMY AND THE RUBLE SAYS MR MASHKOV MR YELTSIN'S PERSONAL REPRESENTATIVE IT'S ONLY GOOD FOR THE MIDDLEMEN WHO ARE PUTTING THE MONEY IN WESTERN BANK ACCOUNTS BUT IT ALL MEANS A STEADY SUPPLY OF NEW IMPORTED GOODS ON SVERDLOV STREET ONE OF SEVERAL THOROUGHFARES THAT HAVE BECOME BUSTLING COMMERCIAL CENTERS TEEMING CROWDS ELBOW THEIR WAY TO SEE WHAT'S ON OFFER ALONG THE MAIN STRETCH BETWEEN YEKATERINBURG'S RAIL STATION AND THE CONCRETE HULK OF A HOTEL UNDER CONSTRUCTION FOR 17 YEARS BRIGHT YELLOW AND RED METAL KIOSKS STOCK ROWS OF CHOCOLATE BARS ALONGSIDE VODKA AND OTHER GOODS SOME ARE BLATANTLY COUNTERFEIT CHANELL NUMBER FYVE READS THE LABEL ON ONE PERFUME FLASK OTHER ITEMS ARE GENUINE TWO WOMEN OFFER MOROCCAN ORANGES IN PLASTIC BAGS FROM A TRESTLE TABLE INSIDE THE GASTRONOM FOOD STORE BEHIND THEM ARE ROWS OF INSTANT COFFEE IMPORTED BABY FOOD AND CARTONS OF TAMPICO ORANGE JUICE TAKE A VACATION IN TURKEY ANNOUNCES A HANDWRITTEN PIECE OF PAPER WITH A PHONE NUMBER PINNED TO A NEARBY NOTICEBOARD MADE TO MEASURE STEEL DOORS SAYS A SIGN NEXT TO IT MANAGEMENT TRAINING COURSES FOR ALL PROMISES A PRIVATE NIGHT SCHOOL LOOKING CLOSELY BUT NOT BUYING IS RAMIL ISHBULATOV A WELDER AT URALMASH HE AND HIS WIFE A KINDERGARTEN TEACHER EARN ENOUGH TO FEED THEIR TWO YOUNG SONS AND BUY AN OCCASIONAL BOTTLE OF VODKA OR CANDY BAR BUT FEW OTHER LUXURIES LIFE MAY BE TOUGH FOR HIM BUT IT HAS BEEN TOUGHER HE IS BEWILDERED BY THE CHANGING TIMES BUT CAN WAIT A LITTLE LONGER FOR MR YELTSIN TO DELIVER ON HIS PROMISES OF A BETTER LIFE WE ALL UNDERSTAND MR ISHBULATOV SAYS THAT IT'S HARD TO BUILD PARADISE IN TWO YEARS 9304160159 930416 INITIAL JOBLESS CLAIMS FELL IN LATEST WEEK WASHINGTON AMERICANS FILED 38000 FEWER INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS IN THE WEEK ENDED APRIL 10 THAN IN THE PREVIOUS WEEK THE LABOR DEPARTMENT SAID THE DROP TO 335000 WAS THE SECOND IN A ROW BUT ANALYSTS SAID THE NUMBERS DON'T NECESSARILY MEAN THE JOBS OUTLOOK IMPROVED IN THE RECENT WEEK THAT'S BECAUSE THE WEEK INCLUDED THE GOOD FRIDAY HOLIDAY AND SOME STATE OFFICES WERE CLOSED THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS MORE ACCURATE FOR JUDGING THE HEALTH OF THE LABOR MARKET FELL 4750 TO 358500 PENNSYLVANIA MICHIGAN AND ALABAMA ALL REPORTED BIG CLAIMS DROPS CALIFORNIA REPORTED THE LARGEST INCREASE WHICH STATE OFFICIALS SAID REFLECTED LAYOFFS IN ALL INDUSTRIES SUGGESTING THAT THE STATE'S ECONOMY IS STILL VERY WEAK 9304160158 930416 WHO'S NEWS HJ HEINZ CO HJ HEINZ CO PITTSBURGH NICHOLAS F BRADY 63YEAROLD FORMER TREASURY SECRETARY WAS NAMED A DIRECTOR OF THIS FOOD CONCERN FILLING A VACANCY MR BRADY SERVED ON THE HEINZ BOARD FROM 1987 UNTIL HIS APPOINTMENT TO THE TREASURY POST IN 1988 HE IS A FORMER CHAIRMAN OF DILLON READ & CO 9304160157 930416 THE NEXT STEP MIGHT BE A BONUS FOR ALL THE UNIVERSITY'S DROPOUTS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL HERE'S THE LATEST IN REVENUEENHANCING CONCEPTS FOR GOVERNMENT MAKE SLACKERS PAY MORE THAT'S THE IDEA BEHIND A BILL MOVING THROUGH THE TEXAS LEGISLATURE FOR STUDENTS WITH MORE THAN 157 SEMESTER HOURS ONETHIRD MORE THAN NEEDED TO GRADUATE THE MEASURE WOULD RAISE TUITION 700 IT'S AIMED AT ACADEMIA'S HANGERSON PARTICULARLY THOSE AT THE UNIVERSITY OF TEXAS IN THE STATE CAPITAL OF AUSTIN THEIR SUBCULTURE WAS IMMORTALIZED IN SLACKER A LOCALLY PRODUCED LOWBUDGET FILM THAT BECAME A CULT HIT LAST YEAR THE MOVIE DIRECTED BY AN ADMITTED SLACKER PROFILES SOME OF THE WRITERS AND THINKERS WHO HANG AROUND THE UNIVERSITY ENROLLING IN CLASS AFTER CLASS AND TAKING ROOT IN THE BOOKSTORES AND COFFEEHOUSES AROUND CAMPUS MANY OF THOSE PROFILED IN THE FILM HAVE NO VISIBLE MEANS OF SUPPORT ONE IS A KENNEDY ASSASSINATION BUFF HOPING TO GET RICH WITH A BOOK TITLED CONSPIRACYAGOGO ANOTHER CLAIMS TO HAVE MADONNA'S PAP SMEAR FOR SALE CARL PARKER A DEMOCRATIC STATE SENATOR FROM SOUTHEASTERN TEXAS IS THE SPONSOR OF THE ANTISLACKER BILL WHICH HAS BEEN PASSED BY THE STATE SENATE AND IS EXPECTED TO GO BEFORE THE HOUSE LATER THIS MONTH BY CRACKING DOWN ON WHAT HE SAYS ARE ESSENTIALLY PROFESSIONAL STUDENTS IT WOULD RAISE 7 MILLION A YEAR THE MEASURE HAS WON THE SENATOR FEW FRIENDS IN THE SLACKER COMMUNITY PHONE CALLS TO HIS OFFICE HAVE ROUNDLY OPPOSED THE IDEA MR PARKER DIDN'T RETURN SEVERAL CALLS SEEKING COMMENT HE'S THINKING IN A REAL INDUSTRIAL UTILITARIAN CAPITALIST SORT OF WAY SAYS RICHARD LINKLATER DIRECTOR OF THE MOVIE MR LINKLATER SAYS THE BILL'S TARGETS INCLUDING A FRIEND WHO HAS 200 SEMESTER HOURS BUT STILL LACKS ONE CLASS REQUIRED FOR GRADUATION OFTEN HANG OUT AROUND THE UNIVERSITY AND DISCUSS PHILOSOPHY BECAUSE A SLOW ECONOMY HAS OFFERED THEM FEW OTHER OPTIONS MAYBE THEY DO THIS BECAUSE THE TELEMARKETING JOB AWAITING THEM DOESN'T HAVE A LOT OF APPEAL HE SAYS AT THE AUSTIN CHRONICLE AN ALTERNATIVE NEWSWEEKLY THAT SERVES AS A HANGOUT FOR SLACKERS EDITOR LOUIS BLACK SAYS THE BILL IS PART OF AN OLD FEUD SLACKERS HE SAYS HAVE LONG IRRITATED CAREERMINDED LAWMAKERS AND IRKED LOCAL ECONOMIC BOOSTERS WHO HAVE SOUGHT TO PORTRAY AUSTIN AS A GUNGHO HIGHTECH BUSINESS HAVEN THIS LIFESTYLE DRIVES PEOPLE UP A WALL MR BLACK SAYS IT'S LIKE THEY'RE GETTING AWAY WITH SOMETHING 9304160156 930416 WHO'S NEWS COCACOLA CO COCACOLA CO ATLANTA JOHN J GILLEN 56 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF THIS BEVERAGE COMPANY MR GILLEN'S PREVIOUS TITLE WAS VICE PRESIDENT AND HE WAS REPONSIBLE FOR THE MCDONALD'S CORP ACCOUNT IN HIS NEW JOB HE WILL CONTINUE TO BE RESPONSIBLE FOR COCACOLA'S GLOBAL CUSTOMER RELATIONSHIP WITH MCDONALD'S AND WILL REPORT TO M DOUGLAS IVESTER COKE'S EXECUTIVE VICE PRESIDENT AND PRINCIPAL OPERATING OFFICER/NORTH AMERICA 9304160155 930416 WHO'S NEWS MOLEX INC MOLEX INC LISLE ILL HACHIRO KOYAMA REPRESENTATIVE DIRECTOR AND CHAIRMAN OF SMITHKLINE BEECHAM JAPAN LTD AND A FORMER LABOR MINISTRY OFFICIAL IN JAPAN WAS NAMED TO THE BOARD OF THIS MAKER OF TERMINALS SWITCHES AND CONNECTORS EXPANDING IT TO EIGHT MEMBERS 9304160154 930416 TOTAL SA AIMS TO MEET NEED FOR GAS IN ASIA EFFORT BY FRENCH COMPANY TO CENTER ON INDONESIA HUGE INVESTMENT IS SET BY JULIA LICHTBLAU SPECIAL TO THE WALL STREET JOURNAL PARIS INDONESIA'S MAHAKAM RIVER DELTA HAS BECOME THE CORNERSTONE OF FRENCH STATECONTROLLED OIL COMPANY TOTAL SA'S PLANS TO MEET AN EXPECTED BOOM IN GAS DEMAND IN ASIA THE GAS PHENOMENON IS IN MARKED CONTRAST WITH THE TREND FOR OIL PRODUCTION IN INDONESIA IN DECLINE AFTER ALMOST A CENTURY OF PRODUCTION IN AN EFFORT TO STEM THAT DECLINE THE INDONESIAN GOVERNMENT IS ACTIVELY ENCOURAGING A SWITCH TO GAS WE'VE FOUND ENORMOUS AMOUNTS OF GAS THERE SAID THIERRY DESMAREST TOTAL'S DIRECTOR OF EXPLORATION AND PRODUCTION AND EVERY MONTH WE INCREASE OUR RESERVE ESTIMATES IN TERMS OF VOLUME FOR OIL AND GAS PRODUCTION TOTAL IS ONE OF THE TOP FIVE OF SOME 50 OIL AND GAS COMPANIES OPERATING IN INDONESIA THE LARGEST GAS OPERATOR THERE IS MOBIL CORP CALTEX PETROLEUM CORP IS THE LARGEST OIL PRODUCER TOTAL PLANS TO INVEST A QUARTER OF ITS EIGHTBILLIONFRANC 148 BILLION 1993 EXPLORATION AND PRODUCTION BUDGET IN ASIA MR DESMAREST SAID WHILE HE DECLINED TO SAY HOW MUCH WILL ACTUALLY GO TOWARD INDONESIA HE SAID THE AREA CONSTITUTES THE LION'S SHARE OF TOTAL'S UPSTREAM ASIAN ACTIVITIES UPSTREAM ACTIVITIES ALREADY COMMAND OVER HALF THIS YEAR'S 15 BILLION INVESTMENT BUDGET FOR TOTAL HE ADDED PROJECTIONS THAT DEMAND WILL SURGE BY OVER 50 IN THE 1990S FOR LIQUEFIED NATURAL GAS IN ASIA MAINLY FOR ELECTRICITY PRODUCTION AND PIPELINE GAS HAVE GIVEN TOTAL JUSTIFICATION FOR ITS INVESTMENT TOTAL ISN'T ALONE IN PURSUING THE EXPECTED RISE IN DEMAND EXXON CORP ALSO IS ON THE VERGE OF COMPLETING AN INDONESIAN LNG PROJECT IN THE VAST NATUNA FIELD THAT COULD BOOST INDONESIAN LNG OUTPUT MALAYSIA BRUNEI AND AUSTRALIA CURRENTLY PRODUCE LNG FROM LARGE NATURAL GAS RESERVES PAPUA NEW GUINEA QATAR RUSSIA AND THE US ALL ARE POTENTIAL RIVALS THE GREAT RISK IS THAT RATIONALITY MIGHT PREVAIL IN SAKHALIN ISLAND AND EAST SIBERIA SAYS DONALD HERTZMARK AN ENERGY CONSULTANT FOR OIL COMPANIES AND THE WORLD BANK THEN JAPAN WOULD GET PIPELINE GAS NORTHEAST ASIAN BUYERS ARE COVERED UNDER CURRENT CONTRACTS FOR THEIR NEEDS THROUGH THE YEAR 2000 ANALYSTS SAY BUT BEYOND THAT TIME THEY ADD THERE WILL BE A DEFICIT IN SUPPLY THAT NEW PRODUCERS COULD WELL FILL BY BOLSTERING ITS POSITION AS AN EXISTING PRODUCER NOW TOTAL COULD WELL BUILD AN EDGE AS A SUPPLIER IN THE 21ST CENTURY EVEN IF THE POLITICAL AND LOGISTICAL PROBLEMS IMPEDING GAS DEVELOPMENT IN AREAS NEIGHBORING JAPAN WERE RESOLVED SOON SAYS MR HERTZMARK IT WOULD TAKE A MINIMUM OF 10 YEARS TO BRING THAT GAS TO MARKET NEW GRASSROOTS LNG PROJECTS THAT AREN'T OFF THE GROUND NOW WON'T DELIVER LNG UNTIL 2000 MR DESMAREST SAYS TOTAL IN A PRODUCTIONSHARING AGREEMENT WITH THE INDONESIAN STATE OIL COMPANY PERTAMINA PRODUCES 70000 BARRELS A DAY OF OIL AND CONDENSATE IN INDONESIA AND 600 MILLION CUBIC FEET A DAY OF NATURAL GAS MOSTLY IN THE MAHAKAM RIVER DELTA THE DELTA ALONG THE WESTERN BORNEO COAST IN THE MAKASSAR STRAIT ALREADY HAS YIELDED OIL FOR THE FRENCH COMPANY FOR THE LAST 20 YEARS MR DESMAREST SAYS AND WE SEE AHEAD OF US 20 MORE YEARS OF GAS PRODUCTION NEAR A GAS LIQUEFACTION PLANT IN THE GIANT PECIKO GAS FIELD ALONE TOTAL AND ITS JAPANESE PARTNER INDONESIA PETROLEUM LTD OR INPEX EXPECT TO INVEST 1 BILLION OVER THE NEXT 10 YEARS THEY PLAN TO DOUBLE THEIR CURRENT PRODUCTION OF GAS FROM THE FIELD TO 15 BILLION CUBIC METERS A YEAR IN FIVE YEARS THE EMPHASIS ON GAS RATHER THAN OIL MEANS MORE CAPITAL EXPENDITURE UP FRONT MR DESMAREST SAYS ADDING AN LNG TRAIN TO AN EXISTING PLANT COSTS ABOUT 600 MILLION WHILE A NEW TWOTRAIN STARTUP PLANT AND THE NECESSARY INFRASTRUCTURE COSTS ABOUT 2 BILLION HE ADDS LNG TRAINS ARE THE PRODUCTION LINES IN AN LNG PLANT THAT COOL THE GAS TO A LIQUID THAT CAN THEN BE TRANSPORTED IN SPECIAL TANKERS MR DESMAREST SAID PERTAMINA OPERATOR OF THE BONTANG GAS LIQUEFACTION PLANT HAS AGREED TO ADD A SEVENTH PRODUCTION TRAIN TO THE PLANT THE PLANT IS INTENDED FOR SERVICE IN 1997 BUT FINANCING DETAILS AREN'T YET IN PLACE THE TOTAL OFFICIAL SAID A SIXTH TRAIN WILL START PRODUCING LNG AT THE END OF 1993 BRINGING PLANT OUTPUT TO 16 MILLION TONS A YEAR INDONESIA KEEN TO ENCOURAGE DEVELOPMENT OF ITS VAST NATURAL GAS RESERVES TO OFFSET DECLINING REVENUE FROM CRUDE PRODUCTION IS SWEETENING CONTRACT TERMS TOTAL AND OTHER INDUSTRY SOURCES SAY THE GOVERNMENT IS OFFERING FOREIGN COMPANIES LARGER SHARES OF PRODUCTION THAN UNDER THE OLD GAS CONTRACTS NEW PRODUCERS ALSO ARE FETCHING MORE FAVORABLE DEPRECIATION RATES AGAINST LOCAL TAXES WHILE THE INDONESIAN OPERATIONS ARE PART OF TOTAL'S EFFORTS TO DOUBLE ITS OIL AND GAS PRODUCTION OUTSIDE THE MIDDLE EAST BETWEEN 19902000 TO ABOUT 550000 BARRELS A DAY OF OIL EQUIVALENT IT ALSO REFLECTS A STEADY SHIFT TOWARD GAS CURRENTLY ABOUT HALF OF CURRENT OUTPUT OUTSIDE THE MIDDLE EAST IS COMPRISED OF GAS THAT PROPORTION WILL RISE TO ABOUT 60 BY 2000 REFLECTING MORE CLOSELY THE GROUP'S RESERVES ALREADY TWOTHIRDS GAS AND ONETHIRD OIL MR DESMAREST SAID 9304160153 930416 INTERNATIONAL WORLD ECONOMY SPANISH FIRM'S BID TO PITCH NEW TRAINS IN US IS BOGGED DOWN BY BUREAUCRACY BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TRAINS IN SPAIN MAY GLIDE ACROSS THE PLAIN BUT THEY'RE HAVING A TOUGH TIME GETTING STARTED IN AMERICA THE TRAINS IN QUESTION USE MODERN EXPENSIVE TILT CARS MADE BY PATENTES TALGO SA OF MADRID GRAVITY LEANS THE TRAINS INTO TIGHT TURNS ALLOWING THEM TO GO FASTER ON EXISTING ROADBEDS THE GOAL IS QUICKER SMOOTHER SERVICE WITHOUT SPENDING HUGE SUMS TO REPLACE EXISTING TRACK AND OTHER FACILITIES THAT'S EXACTLY WHAT AMTRAK THE US GOVERNMENT'S PASSENGER RAIL AGENCY WANTS FOR KEY CORRIDORS BETWEEN LARGE CITIES THAT ARE RELATIVELY CLOSE SUCH AS CHICAGO AND ST LOUIS OR MIAMI AND TAMPA IT HOPES FASTER INTERCITY SERVICE WILL DRAW PASSENGERS FROM HIGHWAYS AND AIR LANES EASING CONGESTION FOR BOTH THE US MARKET IS FUNDAMENTAL TO TALGO'S FUTURE BECAUSE OF ITS ENORMOUS POTENTIAL SAYS A COMPANY SPOKESMAN IN MADRID BUT SO FAR THE COMPANY'S AMERICAN EXPERIENCE IS MAINLY EXASPERATING INDEED THE MANY BUREAUCRATIC OBSTACLES TALGO HAS ENCOUNTERED SOUND LIKE THE ONES AMERICANS SAY THEY BUMP UP AGAINST IN EUROPE AND JAPAN THOUGH AMTRAK'S OWN STUDIES INDICATE THAT TALGO PERFORMS WELL AMTRAK OFFICIALS SEEM RELUCTANT TO GIVE IT A TEST RUN AND A SWEDISHSWISS RIVAL THE X2000 OF ABB ASEA BROWN BOVERI CO HAS A BIG LEAD IN THE RACE FOR SERIOUS BUYERS MEANTIME A HIGHSPEED GERMAN CONTENDER WILL ARRIVE SOON THOUGH FRENCH AND ITALIAN RIVALS HAVE BEEN EXCLUDED FOR TECHNICAL REASONS WHATEVER THE REASONS ABB ENJOYS BOTH AMTRAK APPROVAL AND THE BENEFITS OF SKILLFUL PUBLICITY TALGO HAS NEITHER TALGO REALLY HASN'T DONE A GOOD JOB OF MARKETING ITS PRODUCT SAYS AN ILLINOIS OFFICIAL WHO HOPES TO SEE IT DEMONSTRATED ON THE CHICAGO ST LOUIS RUN ONE PROBLEM MAY LIE IN ITS ORIGINS MOST AMERICANS READILY IDENTIFY HIGHTECH INDUSTRIAL PRODUCTS WITH THE LIKES OF GERMANY AND SWEDEN BUT SPAIN SUMMONS UP TOURIST CLICHES LIKE BULLFIGHTING AND FLAMENCO DANCING WE DO HEAR A LOT OF TONGUEINCHEEK COMMENTS ABOUT CERTAIN NATIONALITIES' PRODUCTS CONCEDES ROBERT KREBS OF THE OREGON STATE DEPARTMENT OF TRANSPORTATION WHO WANTS THE TALGO TESTED AGAINST THE X2000 IN THE VANCOUVER BRITISH COLUMBIAEUGENE ORE CORRIDOR THESE TESTS ARE TO HELP CHOOSE THE BEST TRAINS FOR LOWCOST RELIABLE SERVICE UNDER LOCAL CONDITIONS THE WINNER WOULD BE BOUGHT BY A CONSORTIUM OF FEDERAL AND STATE AGENCIES THOUGH BUYAMERICA LAWS REQUIRE FINAL ASSEMBLY IN THE US WITH AT LEAST 51 OF THE PARTS MADE HERE SOMETHING ELSE AMERICANS COMPLAIN ABOUT WHEN OTHERS DO IT THE TALGO ORIGINALLY WAS AMERICAN ITS TECHNOLOGY STEMS FROM 1930S US PATENTS ACQUIRED BY TALGO THE FIRST MODELS WERE BUILT IN THE 1950S BY AMERICAN CAR & FOUNDRY WHICH NO LONGER EXISTS BECAUSE SPAIN DIDN'T THEN HAVE A FACTORY TO DO THE JOB MODERN VERSIONS OPERATE IN SPAIN AND GERMANY AND SOON WILL BE TESTED BY SWEDEN HOME OF ITS ABB RIVAL'S TRAIN THE JAPANESE ARE ALSO INTERESTED BUT CRACKING THE AMERICAN MARKET IS ANOTHER MATTER WITH AMTRAK'S BLESSING ABB'S SLEEK X2000 TODAY WILL FINISH RUNS BETWEEN WASHINGTON AND NEW YORK WITH DEMONSTRATIONS ELSEWHERE TO FOLLOW NORTHEAST STATIONS HAVE HIGH PLATFORMS AND THE TALGO HAS LOW DOORS SO ITS CARS DON'T EXACTLY FIT BUT THIS ISN'T TRUE ON OTHER ROUTES YET AMTRAK SEEMS UNINTERESTED IN GIVING THE TALGO TRAIN A COMPETITIVE TEST AND OFFERS REASONS THAT LEAVE STATE OFFICIALS AND TALGO UNCONVINCED FOR EXAMPLE AMTRAK SAYS IT WANTS ONLY TRAINS THAT CAN RUN ON ALL US ROUTES AND HOPES TO RAISE PLATFORMS ACROSS AMERICA TO NORTHEASTERN HEIGHTS EFFECTIVELY RULING OUT THE TALGO TRAINS BUT SOME STATES CALL THIS TOO COSTLY AND WESTERNERS OPPOSE EVEN TRYING THE TALGO TRAINS FOR OPERATIONAL REASONS BUT THEY FIND TALGO'S PRICE INTERESTING IT'S ABOUT 35 LESS THAN THE SWEDISH TRAIN ACCORDING TO THE COMPANY THE X2000 USES COMPLEX SENSORS COMPUTERS AND HYDRAULIC MECHANISMS TO TILT ITS CARS INTO CURVES GIVING PASSENGERS A SMOOTH RIDE AT HIGH SPEEDS SOMETHING IMPORTANT ALONG TWISTING OLDER US LINES THE TALGO IS SIMPLER ITS CARS HAVE PASSIVE PNEUMATIC CYLINDERS THAT USE GRAVITY TO TILT THE CARS INTO THE CURVES CONSIDERING THE RELIABILITY OF GRAVITY SINCE NEWTON FIRST RECORDED ITS SCIENTIFIC EFFECTS WE CAN SAY WITH LITTLE DOUBT THAT OUR SYSTEM IS BOUND TO BE MORE RELIABLE THAN ACTIVE HYDRAULIC GIZMOS SAYS PHILIP CORSANO GENERAL MANAGER OF TALGO'S US SUBSIDIARY BUT WHETHER TALGO WILL GET A CHANCE TO PROVE IT IS ANOTHER QUESTION 9304160152 930416 SOUTHERN NEW ENGLAND TELECOM NEW BRITAIN CONN STATE REGULATORS IN A PRELIMINARY DECISION APPROVED A RATE INCREASE OF 33 MILLION TO 442 MILLION OVER THE NEXT TWO YEARS FOR SOUTHERN NEW ENGLAND TELEPHONE CO SOUTHERN NEW ENGLAND TELEPHONE A UNIT OF SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP NEW HAVEN HAD REQUESTED 133 MILLION PHASED IN OVER THREE YEARS AND WAS UNHAPPY WITH THE PRELIMINARY INDICATION WE ARE READY TO TAKE ON THE CHALLENGES OF ACCELERATING OUR INFRASTRUCTURE MODERNIZATION AND OPERATING IN THE NEW COMPETITIVE ENVIRONMENT BUT THE REGULATORS HAVE NOT GIVEN US THE TOOLS TO DO THE JOB SAID DANIEL J MIGLIO SOUTHERN NEW ENGLAND TELECOMMUNICATION'S PRESIDENT AND CHIEF EXECUTIVE OFFICER STATE REGULATORS ARE EXPECTED TO RELEASE THEIR FINAL RATE DECISION BY JUNE 30 9304160151 930416 MEDIA VISION SALES RISE SHARPLY FREMONT CALIF MEDIA VISION INC SAID STRONG DEMAND FOR ITS MULTIMEDIARELATED PRODUCTS LED TO A SHARP RISE IN FIRSTQUARTER SALES AND REVERSED A YEAREARLIER LOSS NET INCOME TOTALED 33 MILLION OR 26 CENTS A SHARE COMPARED WITH A NET LOSS OF 525000 OR 14 CENTS A SHARE IN THE YEAREARLIER QUARTER SALES JUMPED TO 37 MILLION FROM 66 MILLION THE COMPANY CITED LARGER THAN EXPECTED SALES OF COMPONENTS USED TO ENHANCE SOUND AND IMAGES TO MAKERS OF PERSONAL COMPUTERS ITS CUSTOMERS INCLUDE INTERNATIONAL BUSINESS MACHINES CORP AND COMPAQ CORP IT ALSO SELLS THROUGH MASS MERCHANDISING CHANNELS INCLUDING A MULTIMEDIA UPGRADE KIT DESIGNED FOR APPLE COMPUTER INC'S MACINTOSH COMPUTER 9304160150 930416 BOARD FOR OCCUPATIONAL SKILL STANDARDS IS PROMOTED BY CLINTON ADMINISTRATION BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT IS THE YEAR 2000 YOUR ELECTRONICS COMPANY IS LOOKING TO HIRE SOMEONE TO ASSEMBLE CIRCUIT BOARDS RESUMES FLOOD IN THE FIRST STEP IS TO ACCEPT ONLY APPLICANTS WITH INDUSTRYENDORSED CREDENTIALS EARNED THROUGH INTERACTIVE VIDEO TESTS THE CREDENTIALS HAVE BEEN UPDATED AS WORKERS ACQUIRED NEW SKILLS NOT UNLIKE BOY SCOUT MERIT BADGES APPLICANTS HAVE COMPLETED TRAINING PROGRAMS DESIGNED YEARS EARLIER ACCORDING TO ELECTRONICSINDUSTRY STANDARDS AND HAVE BEEN CLUSTERED INTO ABOUT 40 JOB TYPES FOR THE CIRCUITBOARD POST APPLICANTS MUST BE MANUFACTURING SPECIALISTS A CLUSTER THAT WOULD INCLUDE ASSEMBLERS PRODUCTION OPERATORS PURCHASING PEOPLE AND A DOZEN OTHER JOBS RELATED TO MANUFACTURING A PIPE DREAM MAYBE BUT THE ELECTRONICS INDUSTRY IS STUDYING SUCH A PROGRAM ARMED WITH A LABOR DEPARTMENT GRANT AND LATER THIS MONTH AS PART OF ITS EDUCATIONALREFORM PACKAGE THE CLINTON ADMINISTRATION WILL PROPOSE LEGISLATION THAT WOULD ESTABLISH A 28MEMBER NATIONAL BOARD TO ENCOURAGE DEVELOPMENT OF OCCUPATIONAL SKILLS STANDARDS OFFICIALS HOPE THE BILL WILL BE A SIGNIFICANT STEP TOWARD MAKING IT ALL HAPPEN NOT JUST FOR THE ELECTRONICS INDUSTRY BUT FOR MUCH OF THE AMERICAN WORK FORCE OCCUPATIONAL SKILL STANDARDS HAVE BECOME THE RAGE IN WASHINGTON THE STANDARDS BOARD WHICH WOULD BE FUNDED AT 15 MILLION THIS YEAR WOULD BE PART OF THE ADMINISTRATION'S BROADER PLAN TO IMPROVE WORKER SKILLS A PROGRAM THAT LATER THIS YEAR WILL RESULT IN PROPOSALS ON YOUTH APPRENTICESHIPS AND SCHOOLTOWORK TRANSITIONS THE BOARD WOULD BE A CLEARINGHOUSE FOR VOLUNTARY INDUSTRY SKILL STANDARDS MADE UP OF GOVERNMENT OFFICIALS EDUCATORS BUSINESS OFFICIALS AND WORKERS' REPRESENTATIVES THE BOARD WOULD IDENTIFY BROAD CLUSTERS OF OCCUPATIONS INVOLVING ONE OR MORE INDUSTRIES AND THE SKILLS THAT ARE COMMON TO THOSE CLUSTERS THEN THE BOARD WOULD PROMOTE THE DEVELOPMENT OF STANDARDS FOR WORKERS IN THOSE CLUSTERS IT ALSO WOULD ISSUE GOOD HOUSEKEEPINGTYPE SEALS OF APPROVAL FOR VARIOUS SETS OF STANDARDS BUSINESS OFFICIALS GENERALLY SUPPORT THE PROGRAM BUT THEY WORRY THAT THE BOARD WILL ATTEMPT TO SET STANDARDS ITSELF THAT DOESN'T APPEAR TO BE IN THE OFFING THOUGH INSTEAD AS ENVISIONED BY THE LABOR DEPARTMENT THE BOARD WILL BE USED TO BRING TOGETHER BUSINESS WORKER EDUCATIONAL AND GOVERNMENT GROUPS WHICH ALL TOO OFTEN DON'T LINK UP FOR THIS TO WORK ALL THOSE GROUPS ARE GOING TO HAVE TO STRETCH A LITTLE BIT SAYS ANTHONY CARNEVALE CHIEF ECONOMIST FOR THE AMERICAN SOCIETY OF TRAINING AND DEVELOPMENT BUSINESS AND LABOR TEND TO THINK THE EDUCATION PROFESSION IS ELITIST AND DOESN'T UNDERSTAND REAL WORK EDUCATORS THINK BUSINESS IS COLDHEARTED AND DOESN'T CARE ABOUT ANYTHING BUT PROFIT THAT ALL HAS TO CHANGE AT THE CORE OF THE PLAN IS A GOAL OF TYING THE EDUCATION PROCESS MORE CLOSELY TO BUSINESS UNDER THE CURRENT EDUCATION SYSTEM IT'S WHAT COURSES YOU TAKE AND HOW LONG YOU ARE THERE THAT DETERMINE YOUR DEGREE SAYS CHERYL FIELDS TYLER DIRECTOR OF WORKFORCE EXCELLENCE FOR THE AMERICAN ELECTRONICS ASSOCIATION SHE SAYS THE STANDARD SHOULD BE WHAT CAN YOU DO WHEN YOU GET OUT OF SCHOOL STILL SOME REPUBLICANS OPPOSE THE PROGRAM ARGUING IN FAVOR OF THE BUSH ADMINISTRATION APPROACH OF LETTING INDUSTRY SET ITS OWN STANDARDS WITHOUT GOVERNMENT INTERFERENCE I AM NOT SURE THERE IS A CONSENSUS OR EVEN AN UNDERSTANDING AS TO WHAT OCCUPATIONAL SKILL STANDARDS ARE OR HOW THEY WILL BE USED CONTENDS REPUBLICAN SEN NANCY KASSEBAUM OF KANSAS THE LAST THING WE NEED IT SEEMS TO ME IS ANOTHER BUREAUCRATIC TOPDOWN APPROACH TO DEVELOPING WHAT IS STILL A RATHER NOVEL IDEA SKILL STANDARDS FOR JOBS IN EVERY INDUSTRY SOME BUSINESS PEOPLE GRUMBLE THAT ONLY EIGHT OF THE 28 SEATS ON THE BOARD WOULD BE FILLED BY INDUSTRY OFFICIALS THE SAME LEVEL OF REPRESENTATION AS ORGANIZED LABOR WHICH MAKES UP LESS THAN 12 OF THE NONGOVERNMENT WORK FORCE EVEN WITH COOPERATION AMONG THE GROUPS THE TASK WON'T BE EASY ROBERT HALL VICE PRESIDENT OF THE NATIONAL RETAIL FEDERATION IN WASHINGTON IS WORKING WITH A LABOR DEPARTMENTFUNDED PROGRAM TO FIGURE OUT SKILL STANDARDS FOR THE RETAILING INDUSTRY FOR SUCH JOBS AS SALES CLERK THE GROUP IS TRYING TO DETERMINE HOW TO ESTABLISH CREDENTIALS COVERING BOTH CLEARCUT TASKS LIKE RUNNING A COMPUTER CASH REGISTER AND LESS MEASURABLE QUALITIES LIKE INTERPERSONAL SKILLS APPEARANCE AND POLITENESS WE WANT TO COME UP WITH THE BEST GUIDEPOSTS WE CAN FOR THE INDUSTRY MR HALL SAYS IT'S A TOUGH TASK BUT THE INDUSTRY IS EAGER TO COMMUNICATE TO EDUCATORS JUST HOW IMPORTANT THOSE SKILLS ARE TO REAL WORKPLACES WE WANT TO SEND A MESSAGE TO HIGH SCHOOLS COMMUNITY COLLEGES AND OTHER PLACES WHERE PEOPLE ARE GETTING TRAINING WHAT KIND OF SKILL STANDARDS WE WANT THESE PEOPLE TO HAVE HE SAYS INDUSTRY WANTS SOMETHING THAT IS REAL LIFE 9304160149 930416 USAIR PLANS TO SELL TEN MILLION SHARES IN OFFERING TO PUBLIC ARLINGTON VA USAIR GROUP INC SAID IT PLANS TO SELL 10 MILLION SHARES IN A PUBLIC OFFERING THAT COULD RAISE MORE THAN 200 MILLION AND GIVE THE CARRIER ADDITIONAL STAYING POWER IN THE BRUTALLY COMPETITIVE AIRLINE BUSINESS THE OFFERING WOULD TAKE ADVANTAGE OF AN INCREASE IN USAIR'S STOCK PRICE FOLLOWING A 300 MILLION INVESTMENT IN THE AIRLINE BY BRITISH AIRWAYS LAST MONTH USAIR WHICH HAD AN OPERATING LOSS OF 6008 MILLION LAST YEAR SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 10 MILLION SHARES AND AS MANY AS 115 MILLION IF UNDERWRITERS LED BY FIRST BOSTON CORP EXERCISE OVERALLOTMENT OPTIONS USAIR WAS QUOTED IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AT 2175 DOWN 875 CENTS THE STOCK TRADED AS LOW AS 1050 DURING THE LAST YEAR BUT HAS RALLIED SINCE THE BIG INFUSION OF CASH FROM BRITISH AIRWAYS IN EXCHANGE FOR A 246 EQUITY STAKE AND 199 OF THE VOTING STOCK USAIR CURRENTLY HAS 473 MILLION SHARES OUTSTANDING THE INVESTMENT WAS OPPOSED BY AMERICAN AIRLINES UNITED AIRLINES AND DELTA AIR LINES WHICH WANT BETTER ACCESS TO THE BRITISH MARKET 9304160148 930416 INTERNATIONAL HUGHES AIRCRAFT WINS CONTRACT TO PROVIDE SATELLITES TO INDONESIA JAKARTA INDONESIA HUGHES AIRCRAFT CO OF THE US WON A 128 MILLION CONTRACT TO BUILD TWO SATELLITES FOR AN INDONESIAN COMPANY UNDER AN AGREEMENT SIGNED YESTERDAY THE COMPANY'S HUGHES COMMUNICATIONS INTERNATIONAL INC UNIT WILL SUPPLY TWO OF ITS LATEST MODELS OF SATELLITE TO PT SATELIT PALAPA INDONESIA OR SATELINDO SATELINDO WHOSE SHAREHOLDERS INCLUDE A SON OF INDONESIAN PRESIDENT SUHARTO HAS AN OPTION TO BUY A THIRD SATELLITE HUGHES AIRCRAFT IS A UNIT OF GENERAL MOTORS CORP THE CONTRACT IS INTENDED TO HELP INDONESIA MAINTAIN ITS KEY POSITION IN REGIONAL COMMUNICATIONS BY SUPPLYING A THIRD GENERATION OF PALAPA PROGRAM SATELLITES CALLED THE C SERIES HUGHES ALSO BUILT THE TWO PALAPA A AND FOUR B SATELLITES INDONESIA HAS LAUNCHED SINCE 1976 THE C SATELLITES WILL HAVE 34 CHANNELS COMPARED WITH 24 FOR THOSE IN THE B SERIES DESIGNED TO FUNCTION FOR 12 YEARS THE C SATELLITES ALSO WILL BE ABLE TO REACH MORE COUNTRIES THAN THE PALAPA PROGRAM CAN REACH AT PRESENT THE SIGNING WAS A SIGNIFICANT STEP TOWARD INDONESIA'S GETTING PALAPA C UNDER WAY BUT THERE IS NO GUARANTEE THAT THE FIRST LAUNCH CAN TAKE PLACE BY OCTOBER 1995 AS IS NEEDED TO REPLACE THE DYING B SATELLITE SATELINDO STILL MUST CHOOSE A ROCKET AND MUST FINANCE TWO LAUNCHES EACH OF WHICH IS LIKELY TO COST 80 MILLION OR MORE BUSINESS ANALYSTS SAY FINANCING COULD BE A PROBLEM FOR THE COMPANY WHICH IS 60 CLOSELY HELD 9304160147 930416 WHO'S NEWS PERKINELMER PICKS PIGLIUCCI AS PRESIDENT CHIEF OF OPERATIONS NORWALK CONN PERKINELMER CORP NAMED A LONGTIME INSTRUMENT BUSINESS EXECUTIVE AS ITS CHIEF OPERATING OFFICER A POST THAT HAD BEEN VACANT SINCE 1990 THE NEW EXECUTIVE RICCARDO PIGLIUCCI 46 YEARS OLD ALSO BECOMES PRESIDENT OF PERKINELMER SUCCEEDING CHAIRMAN GAYNOR N KELLEY 61 IN THAT POSITION THE PROMOTION REEMPHASIZES PERKINELMER'S FOCUS ON ITS ANALYTICAL INSTRUMENTS BUSINESS MR PIGLIUCCI WILL BE MAINLY RESPONSIBLE FOR THE COMPANY'S WORLDWIDE INSTRUMENTS AND LIFE SCIENCE SYSTEMS MR PIGLIUCCI WAS ALSO NAMED A DIRECTOR INCREASING THE BOARD TO NINE MEMBERS MOST RECENTLY A SENIOR VICE PRESIDENT MR PIGLIUCCI HAS HELD VARIOUS MANAGEMENT POSITIONS IN PERKINELMER'S INSTRUMENT OPERATIONS IN EUROPE AND THE US MR PIGLIUCCI'S PROMOTION ADDS TO RECENT STEPS BY PERKINELMER TO RESTORE THE COMPANY'S FOCUS ON INSTRUMENTATION AND LIFE SCIENCE BUSINESS WHICH IS A GROWTH MARKET FOR THE 1990S SAID RICHARD L WHITTINGTON ANALYST AT GRUNTAL & CO LAST OCTOBER PERKINELMER ACQUIRED APPLIED BIOSYSTEMS INC A MAKER OF SYSTEMS FOR GENE EXTRACTION PURIFICATION AND ANALYSIS IN A STOCK SWAP VALUED AT ABOUT 330 MILLION IN RECENT YEARS THE COMPANY HAS ALSO AGGRESSIVELY SHED TROUBLED OPERATIONS IN 1992 PERKINELMER POSTED EARNINGS OF 588 MILLION OR 172 A SHARE COMPARED WITH A LOSS OF 156 MILLION OR 47 CENTS A SHARE IN 1991 REVENUE ROSE 42 TO 9111 MILLION FROM 8744 MILLION 9304160146 930416 INTERNATIONAL EC CRITICIZES US ON TRADE CITES SANCTIONS BY JULIE WOLF SPECIAL TO THE WALL STREET JOURNAL BRUSSELS JUST DAYS BEFORE TALKS BETWEEN THE EUROPEAN COMMUNITY AND THE US THE EC COMMISSION ISSUED A LENGTHY CRITIQUE OF US BARRIERS TO TRADE AND INVESTMENT IN ITS ANNUAL REPORT ON THE SUBJECT THE COMMISSION STRONGLY REITERATED ITS OPPOSITION TO UNILATERAL TRADE SANCTIONS PROVIDED UNDER US LAW IT ALSO CRITICIZED THE US FOR APPLYING ITS TRADE LEGISLATION TO COMPANIES OUTSIDE THE US OVE JORGENSEN HEAD OF THE COMMISSION'S ECUS AFFAIRS UNIT SAID THE 90PAGE REPORT SEEKS TO CORRECT THE IMPRESSION THAT THE US HAS AN OPEN MARKET THE COMMISSION SAID THE NUMBER OF TRADE BARRIERS CITED IN THE REPORT HADN'T BEEN REDUCED FROM LAST YEAR'S REPORT SEVERAL US TRADE PRACTICES WERE ADDED TO THE EC'S LIST BUT THESE WERE OFFSET BY THE ELIMINATION OF BARRIERS THROUGH ECUS NEGOTIATIONS THE REPORT CAME ON THE EVE OF NEGOTIATIONS IN WASHINGTON BETWEEN THE EC'S FOREIGN TRADE COMMISSIONER SIR LEON BRITTAN AND US TRADE REPRESENTATIVE MICKEY KANTOR THE US HAS THREATENED TO BLOCK EUROPEAN COMPANIES FROM AS MUCH AS 50 MILLION IN CONTRACTS UNLESS THE EC ELIMINATES BUYEUROPEAN PROVISIONS FROM PUBLICPROCUREMENT LEGISLATION THAT TOOK EFFECT IN JANUARY A SPOKESMAN SAID THE COMMISSION WAS CONSIDERING HOW TO RESPOND IF THE US IMPOSES SANCTIONS THE COMMISSION WILL COME UNDER STRONG PRESSURE FROM A NUMBER OF EC GOVERNMENTS TO RETALIATE MR JORGENSEN SAID THE COMMISSION IS ESPECIALLY WORRIED ABOUT INCREASED PRESSURE FROM THE US CONGRESS FOR UNILATERAL ACTION AGAINST TRADING PARTNERS AMONG THE NEW TRADE BARRIERS LISTED BY THE EC WAS THE CUBAN DEMOCRACY ACT WHICH PREVENTS AMERICAN UNITS IN EUROPE FROM DOING BUSINESS WITH CUBA AS WELL AS 13 BILLION IN TARIFF INCREASES ON A RANGE OF ITEMS INCLUDING FARM PRODUCTS 9304160145 930416 TECHNOLOGY IBM CREATES DIVISION IN EUROPE TO EXPAND PC SOFTWARE SALES LONDON INTERNATIONAL BUSINESS MACHINES CORP SAID IT CREATED A NEW AND BIGGER DIVISION TO MARKET ITS PERSONAL COMPUTER SOFTWARE IN EUROPE THE ARMONK NYBASED COMPUTER COMPANY SAID IT IS SEPARATING ITS PC SOFTWARE MARKETING AND SERVICE OPERATIONS FROM ITS MAIN PC UNIT IN EUROPE AND GIVING THE NEW DIVISION EXTRA WORKERS AND RESOURCES WE'LL PROBABLY BE DOUBLING WHAT WE HAVE TODAY IN EUROPEAN PC SOFTWARE SALES FORCE SAID DAVID MCAUGHTRY DIRECTOR OF THE NEW PERSONAL SOFTWARE PRODUCTS EUROPE UNIT SO THIS ISN'T JUST A REDRAWING OF THE ORGANIZATIONAL LINES THIS IS A SIGNIFICANT INVESTMENT AND WE'RE BEING GIVEN THE RESOURCES IT TAKES HE DECLINED TO PROVIDE SPECIFIC EMPLOYEE OR REVENUE NUMBERS BEYOND SAYING THAT THE EUROPEAN UNIT ACCOUNTS FOR 40 TO 50 OF IBM'S WORLDWIDE PC SOFTWARE REVENUE EUROPEAN INDUSTRY ANASTS CALLED THE STEP LIKELY TO HELP THE MARKETING OF IBM'S OS/2 PERSONALCOMPUTER OPERATING SYSTEM AN OPERATING SYSTEM IS THE MASTER PROGRAM THAT CONTROLS A PC'S BASIC FUNCTIONS AND INTO WHICH ALL OF A PC'S SPECIFIC WORD PROCESSING SPREADSHEET AND OTHER APPLICATION PROGRAMS FIT MSDOS WHICH IBM LICENSED IN 1983 FROM MICROSOFT CORP BECAME THE INDUSTRY STANDARD WINDOWS MICROSOFT'S SOFTWARE INTRODUCED TWO YEARS AGO TO PROVIDE A GRAPHICS INTERFACE TO THE OPERATING SYSTEM HAS SOLD 25 MILLION COPIES MR MCAUGHTRY SAID OS/2 HAS SOLD A MILLION COPIES IN EUROPE AND MORE THAN TWO MILLION WORLDWIDE IN THE US IBM ALREADY HAS SEPARATED MARKETING FOR ITS PC SOFTWARE FROM THAT FOR ITS PC HARDWARE IN EUROPE MR MCAUGHTRY SAID THE SPLIT IS INTENDED TO HELP FOCUS MORE EFFORT ON SOFTWARE AND TO MAKE IT EASIER TO MEASURE HOW WELL SOFTWARE IS DOING AS A SEPARATE BUSINESS WITH ITS OWN BUDGET AND PROFIT GOAL 9304160144 930416 WHAT'S NEWS WORLDWIDE G7 NATIONS UNVEILED A 284 BILLION AID PACKAGE FOR THE FORMER SOVIET UNION THE GROUP OF SEVEN INDUSTRIAL DEMOCRACIES ANNOUNCED THE AID PLAN DURING A MEETING IN TOKYO OF FINANCE AND FOREIGN MINISTERS THE PACKAGE INCLUDES 124 BILLION IN LOANS FROM THE IMF THE WORLD BANK AND THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ANOTHER 6 BILLION IN THE IMFSPONSORED RUBLE STABILIZATION FUND THAT WAS CREATED LAST YEAR AND 10 BILLION IN LOANS AND LOAN GUARANTEES FROM THE US EXPORTIMPORT BANK AND ITS OVERSEAS COUNTERPARTS RUSSIAN LEADER YELTSIN SAID HE WOULD DEMOTE HIS REBELLIOUS VICE PRESIDENT AND WOULD UNILATERALLY CHANGE THE RULES FOR AN APRIL 25 REFERENDUM ON HIS POLICIES SERBS LAUNCHED A FIERCE ASSAULT ON A BESIEGED MUSLIM TOWN IN BOSNIA HAM RADIO OPERATORS IN SREBRENICA SAID THE INTENSIFIED SERB OFFENSIVE PUSHED MUSLIM DEFENDERS TO WITHIN 1 1/4 MILES OF THE TOWN WHERE DOZENS OF CIVILIANS DIED IN AN ATTACK MONDAY A UN SPOKESMAN ALSO CONFIRMED FIGHTING IN THE AREA EARLIER A FIVETRUCK UN CONVOY LEFT THE SERBRINGED TOWN WITH ONLY FIVE ELDERLY WOMEN AFTER LOCAL LEADERS BLOCKED A MASS EVACUATION NO MORE CONVOYS WERE PLANNED FOR SEVERAL DAYS THE STATE DEPARTMENT RELEASED A REPORT BY A TEAM THAT URGED CONSIDERATION OF TOUGH MILITARY STEPS AND ESTABLISHMENT OF SAFE HAVENS FOR ENDANGERED GROUPS THE CLINTON ADMINISTRATION WILL UNVEIL AN EDUCATION REFORM PROGRAM THIS MONTH THAT WILL RESEMBLE THE PLAN THAT STALLED IN CONGRESS LAST FALL WITH ONE EXCEPTION IT WON'T INCLUDE A SCHOOLCHOICE PLAN TO ALLOW US FUNDS TO PAY FOR PRIVATESCHOOL EDUCATION AS A RESULT THE PLAN MAY HAVE A BETTER CHANCE OF PASSAGE SOUTH AFRICA'S GOVERNMENT THREATENED A SECURITY CRACKDOWN AND URGED SWIFTER PROGRESS TOWARD ENDING APARTHEID AFTER VIOLENCE ERUPTED DURING NATIONWIDE RALLIES IN HONOR OF SLAIN BLACK LEADER CHRIS HANI OFFICIALS SAID EXTRA TROOPS WOULD BE DEPLOYED AND POLICE WOULD BE GIVEN EXPANDED POWERS IN AREAS HIT BY VIOLENT PROTESTS WEDNESDAY A GROUP OF NUNS WILL MOVE SOON FROM THE FORMER NAZI CAMP AT AUSCHWITZ A BISHOP IN POLAND SAID AFTER POPE JOHN PAUL II INTERVENED TO END A NINEYEAROLD DISPUTE WITH JEWISH ORGANIZATIONS OVER THE CONVENT A CAR BOMB EXPLODED IN A CROWDED BOGOTA SHOPPING CENTER KILLING AT LEAST 11 PEOPLE AND INJURING MORE THAN 100 OTHERS COLOMBIAN OFFICIALS BLAMED FUGITIVE DRUG TRAFFICKER ESCOBAR FOR THE BLAST A HOSTAGE DIED AT A MAXIMUMSECURITY PRISON IN LUCASVILLE OHIO WHERE INMATES STAGED A REVOLT SUNDAY THE INMATES RELEASED ONE OF THE SEVEN REMAINING PRISON GUARD HOSTAGES LAST NIGHT SEVEN INMATES HAVE DIED IN THE UPRISING AND SOME 450 OF THEM REMAINED IN A BARRICADED CELLBLOCK A FIRE RAGED OUT OF CONTROL LAST NIGHT AT THE HEADQUARTERS OF NIGERIA'S DEFENSE MINISTRY IN LAGOS AND DOZENS OF PEOPLE WERE TRAPPED ON SEVERAL FLOORS OF THE BUILDING STATE TELEVISION REPORTED IRANIANBACKED GUERRILLAS FIRED ROCKETS AT NORTHERN ISRAEL AND THE ISRAELI ARMY MOVED MORE TANKS AND ARTILLERY INTO ITS SOUTH LEBANON SECURITY ZONE LEBANESE SOURCES SAID THE STEPPEDUP HOSTILITIES TOOK PLACE JUST FIVE DAYS BEFORE ARABISRAELI PEACE TALKS ARE SCHEDULED TO RESUME ISRAEL SAID IT HAD NEARLY QUADRUPLED ITS BUDGET FOR DEVELOPMENT PROJECTS IN THE OCCUPIED TERRITORIES WHICH ARE CURRENTLY SEALED OFF BY ISRAELI SECURITY FORCES IN AN EFFORT TO BOOST EMPLOYMENT FOR PALESTINIANS THE WHITE HOUSE IS SEEKING A SLIGHT INCREASE IN INTELLIGENCE SPENDING HOPING REPUBLICAN SUPPORT IN CONGRESS WILL HELP OVERCOME SOME DEMOCRATIC OBJECTIONS OFFICIALS SAID SEVERAL WASHINGTON OFFICIALS CONFIRMED THAT AN INCREASE HAD BEEN REQUESTED FOR INTELLIGENCE SATELLITE OPERATIONS MILWAUKEE RESIDENTS WERE TOLD THEY COULD DRINK REGULAR TAP WATER AFTER THE MUNICIPAL WATER SYSTEM WAS PRONOUNCED FREE OF A PARASITE THAT HAD SICKENED THOUSANDS OF PEOPLE SINCE LAST WEEK JURORS RESUMED DELIBERATIONS IN THE RODNEY KING BEATING TRIAL IN LOS ANGELES WHEN A JUROR RETURNED TO COURT AFTER BECOMING ILL ON WEDNESDAY SEPARATELY THE FEDERAL JUDGE IN THE CASE THREATENED TO CLOSE A COURTHOUSE PRESS ROOM SAYING A COURT PROCEEDING WAS IMPROPERLY BROADCAST BUT HE LATER SAID THE MATTER HAD BEEN RESOLVED 9304160143 930416 ORIENTEXPRESS HOTELS REPORTS WIDER LOSSES FOR YEAR AND QUARTER NEW YORK ORIENTEXPRESS HOTELS INC REPORTED A WIDER LOSS FOR 1992 AMID WHAT IT CALLED APPALLING CONDITIONS FOR THE LUXURY LEISURE INDUSTRY THE OWNER AND OPERATOR OF DELUXE HOTELS AND TOURIST TRAINS INCLUDING THE ORIENTEXPRESS ALSO SAID IT WOULD SEEK TO SELL SOME PROPERTIES THOSE PROPERTIES INCLUDE ITS WINDERMERE ISLAND CLUB IN THE BAHAMAS WHICH HAD AN UNSATISFACTORY YEAR AND ITS PROFITABLE LAKE WINDERMERE IRON STEAMBOAT CO ORIENTEXPRESS SAID THE 1992 LOSS WAS 105 MILLION OR 107 A SHARE COMPARED WITH A LOSS OF 75 MILLION OR 77 CENTS A SHARE IN 1991 REVENUE ROSE MARGINALLY TO 534 MILLION FROM 52 MILLION RESULTS IN 1991 INCLUDED A SPECIAL FEE OF 225 MILLION THAT ORIENTEXPRESS RECEIVED FOR ARRANGING A HOTEL ACQUISITION FOR AN AFFILIATED COMPANY AND MANAGING THE PROPERTY PRIOR TO COMPLETION OF THE PURCHASE FOR THE FOURTH QUARTER THE LOSS WIDENED TO 46 MILLION OR 47 CENTS A SHARE AGAINST 44 MILLION OR 45 CENTS A SHARE IN THE 1991 FOURTH QUARTER REVENUE ROSE TO 10 MILLION FROM 98 MILLION JAMES B SHERWOOD CHAIRMAN SAID 1992 WAS THE SECOND YEAR IN A ROW OF APPALLING RESULTS FOR THE LUXURY LEISURE INDUSTRY CAUSED PRIMARILY BY WORLD RECESSION THE COMPANY'S OWNED HOTELS IN ITALY POSTED A 1992 LOSS THAT WAS 1 MILLION MORE THAN IN 1991 THE ITALIAN LIRA HAS RECENTLY DECLINED SIGNIFICANTLY IN VALUE AND THE COMPANY HOPES THAT LOWER PRICES WILL ATTRACT MORE VISITORS FROM ABROAD IN 1993 STEPS ARE BEING TAKEN TO REDUCE STAFFING COSTS AND TO EXTEND THE OPENING PERIOD OF THE HOTELS THE COMPANY SAID THE WINDERMERE ISLAND CLUB IN THE BAHAMAS HAD AN UNSATISFACTORY YEAR HAS BEEN CLOSED AND IS BEING OFFERED FOR SALE SEVERAL OFFERS HAVE BEEN REJECTED AS BEING INADEQUATE BUT DISCUSSIONS ARE IN PROGRESS WITH OTHER POTENTIAL PURCHASERS THE COMPANY'S TOURIST TRAIN LOSSES WERE 900000 GREATER IN 1992 WHICH HAS PROMPTED THE COMPANY TO REDUCE SUBSTANTIALLY THE FREQUENCY OF ITS VENICE SIMPLONORIENTEXPRESS SERVICE FOR 1993 WHILE AT THE SAME TIME EXTENDING THE SERVICE INTO GERMANY WHICH HAS BEEN HURT LESS BY RECESSION THAN OTHER COUNTRIES OF EUROPE 9304160142 930416 A WOMAN TWO MEN DISCIPLINED BY AMEX FOR VIOLATING RULES NEW YORK THE AMERICAN STOCK EXCHANGE FINED A FORMER PRUDENTIAL SECURITIES INC EMPLOYEE 15000 FOR VIOLATING EXCHANGE RULES AND ANNOUNCED DISCIPLINARY ACTIONS AGAINST TWO OTHER INDIVIDUALS FOR VIOLATING RULES SANDRA SATTERFIELD FORMERLY OF PRUDENTIAL HAD BEEN CHARGED WITH RECOMMENDING UNSUITABLE TRANSACTIONS IN TWO CUSTOMERS' ACCOUNTS IMPLEMENTING DISCRETIONARY OPTIONS TRANSACTIONS WITHOUT THE CUSTOMERS' KNOWLEDGE OR WRITTEN CONSENT HAVING FOUR CUSTOMERS EXECUTE NEW OPTIONS ACCOUNTS CONTAINING INFORMATION SHE ALLEGEDLY KNEW WAS FALSE AND CHURNING ACCOUNTS MS SATTERFIELD OF LAS VEGAS ALSO WAS CENSURED AND BARRED FROM THE EXCHANGE FOR FIVE YEARS WITH FOUR YEARS ALREADY CONSIDERED SERVED NEITHER SHE NOR HER ATTORNEY COULD BE REACHED FOR COMMENT SAMUEL BERNSTEIN A FORMER OPTIONS TRADER FROM FORT LEE NJ WAS FINED 7500 AND BARRED FOR SIX MONTHS FOR IMPLEMENTING 72 OPTIONS TRANSACTIONS INTENDED TO CREATE PRICES WITH A FAVORABLE IMPACT ON THE EQUITY IN HIS ACCOUNT MR BERNSTEIN NEITHER ADMITTED NOR DENIED GUILT IN REACHING A SETTLEMENT WITH THE AMEX NEITHER HE NOR HIS ATTORNEY COULD BE REACHED FOR COMMENT MITCHELL K COHEN A FORMER OPTIONS PRINCIPAL MEMBER FROM NEW YORK WAS CENSURED BARRED FOR ONE YEAR AND REQUIRED TO PAY IN FULL ALL DUES AND FEES OWED TO THE EXCHANGE FOR A NUMBER OF ALLEGED RECORDKEEPING VIOLATIONS AMONG OTHER CHARGES MR COHEN WHO NEITHER ADMITTED NOR DENIED GUILT WAS CHARGED WITH RECEIVING PREFERENTIAL MARGIN TREATMENT BY INITIATING OR INCREASING HIS HOLDINGS IN 19 OPTION TRADES OFF THE EXCHANGE FLOOR FOR HIS OWN MARKETMAKER ACCOUNT REPEATEDLY IGNORING EXCHANGE WARNINGS AND FAILING TO COOPERATE WITH EXCHANGE OFFICIALS CONSISTENTLY FAILING TO MAINTAIN ACCURATE RECORDS FOR MKC TRADING CO OF WHICH HE WAS GENERAL PARTNER AND FAILING TO FILE TIMELY REPORTS FOR MKC MR COHEN DECLINED TO COMMENT 9304160141 930416 TRACOR UNIT GETS CONTRACT AUSTIN TEXAS TRACOR INC SAID ITS TRACOR APPLIED SCIENCES INC UNIT RECEIVED A FOURYEAR CONTRACT VALUED AT 183 MILLION TO PROVIDE ENGINEERING AND TECHNICAL SERVICES TO THE AIR TRAFFIC CONTROL DIVISION OF THE NAVAL ELECTRONIC SYSTEMS ENGINEERING ACTIVITY IN ST INIGOES MD 9304160140 930416 SOFTWARE NICHE PLAYERS TO POST PROFIT GAINS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL SOFTWARE MAKERS WHO HAVE FOUND MARKET NICHES UNFILLED BY MICROSOFT CORP ARE EXPECTED TO REPORT HEALTHY QUARTERLY EARNINGS ACCORDING TO INDUSTRY ANALYSTS FOR INSTANCE SYBASE INC IN EMERYVILLE CALIF SPECIALIZES IN MAKING SOFTWARE THAT MANAGES DATA USED BY DESKTOP COMPUTERS LINKED TOGETHER IN NETWORKS WITH A COMPUTER CALLED A SERVER CORPORATIONS ARE INCREASINGLY USING THESE TYPES OF CLIENTSERVER SYSTEMS TO SOLVE THEIR COMPUTING NEEDS WHICH IN THE PAST WOULD HAVE BEEN SATISFIED BY MAINFRAME COMPUTERS FOR THE FIRST QUARTER RICHARD SHERLUND AN ANALYST WITH GOLDMAN SACHS ESTIMATED THAT SYBASE'S NET INCOME MORE THAN DOUBLED TO 6 MILLION OR 23 CENTS A SHARE FROM 26 MILLION OR 11 CENTS A SHARE A YEAR EARLIER MR SHERLUND ESTIMATED THE COMPANY'S REVENUE ROSE 50 TO 78 MILLION FROM 515 MILLION SYBASE IS A COMPANY IN THE RIGHT PLACE AT THE RIGHT TIME WITH THE RIGHT PRODUCT HE SAID PEOPLESOFT INC WALNUT CREEK CALIF ALSO HAS TAKEN ADVANTAGE OF THE TREND TOWARDS CLIENTSERVER COMPUTING BY DEVELOPING APPLICATION SOFTWARE USED IN DESKTOP COMPUTERS PLUGGED INTO COMPUTER NETWORKS FOR SUCH TASKS AS KEEPING LEDGERS AND POSTING SALES DATA PEOPLESOFT HAD AN INITIAL PUBLIC OFFERING LAST NOVEMBER MAKING IT ONE OF THE FIRST SOFTWARE MAKERS OF THIS TYPE TO GO PUBLIC MR SHERLUND SAID HE ESTIMATED THAT PEOPLESOFT'S FIRSTQUARTER NET ROSE 67 TO 1 MILLION OR EIGHT CENTS A SHARE FROM 600000 OR THE EQUIVALENT OF SIX CENTS A SHARE A YEAR EARLIER HE ESTIMATED THAT REVENUE GREW 50 TO 9 MILLION FROM 6 MILLION WHILE SOME COMPANIES HAVE PROFITED BY AVOIDING MICROSOFT'S MARKETS OTHER COMPANIES COMPETING HEADON WITH THE REDMOND WASH SOFTWARE COMPANY HAVE BEEN HURT ANALYSTS SAID BORLAND INTERNATIONAL INC HAS BEEN LOSING MARKET SHARE TO MICROSOFT WHOSE DATABASE SOFTWARE COMPETES WITH BORLAND'S SAID TERENCE QUINN AN ANALYST WITH FURMAN SALZ INC BUT BORLAND BASED IN SCOTTS VALLEY CALIF HAS SLASHED OPERATING EXPENSES HE SAID THE REDUCED COSTS WILL HELP BORLAND POST A 29 RISE IN FISCAL FOURTHQUARTER NET INCOME TO 4 MILLION OR 15 CENTS A SHARE COMPARED WITH 31 MILLION OR 12 CENTS A SHARE A YEAR EARLIER MR QUINN SAID HE RAISED HIS ESTIMATE THIS WEEK TO 15 CENTS A SHARE FROM 10 CENTS BECAUSE THE COMPANY APPEARS TO HAVE CUT MORE THAN THE 15 OF ITS WORK FORCE THAT IT HAD ANNOUNCED IT WOULD CUT REVENUE IS EXPECTED TO HAVE SHRUNK SLIGHTLY TO 115 MILLION FROM 117 MILLION HE SAID EXPENSE AND STAFF CUTS WERE PROMPTED IN PART BY FALLING PRICES FOR DATABASE SOFTWARE PRODUCTS RESULTING FROM COMPETITION MR QUINN SAID SO MUCH COSTCUTTING WAS DONE BY BORLAND MR QUINN SAID THAT HE WONDERS WHETHER THE COMPANY CAN REALLY RUN AT THESE LEVELS WITHOUT CUTTING INTO THE MUSCLE SLACKENED DEMAND FOR DOSBASED PRODUCTS ALSO HAS HURT BORLAND AS MORE AND MORE CUSTOMERS SWITCH TO THE NEWER WINDOWSBASED PRODUCTS WHICH ARE MICROSOFT'S GREATEST STRENGTHS LOTUS DEVELOPMENT INC MUST COMPETE WITH MICROSOFT IN THE MARKET FOR SPREADSHEET PROGRAMS SALES OF LOTUS'S 123 SPREADSHEET SOFTWARE WHICH DOMINATED THE DOS MARKET HAVE BEEN BATTERED IN THE WINDOWS MARKET BY SALES OF A MICROSOFT'S EXCEL SOFTWARE MR SHERLUND SAID FOR THE FIRST QUARTER LOTUS IS EXPECTED TO REPORT A 52 DROP IN NET INCOME TO 10 MILLION OR 25 CENTS A SHARE FROM 21 MILLION OR 47 CENTS A SHARE A YEAR EARLIERMR SHERLUND SAID REVENUE ROSE SLIGHTLY TO 230 MILLION FROM 227 MILLION HE ESTIMATED LOTUS PLANS TO SHIP SEVERAL NEW PRODUCTS DURING THE NEXT FEW MONTHS WHICH SHOULD HELP BOOST EARNINGS DURING THE SECOND HALF OF THE YEAR HE SAID MICROSOFT HAS BEEN BUILDING SOME FEATURES CALLED UTILITIES INTO ITS OPERATING SYSTEM SOFTWARE USED TO MANAGE THE SYSTEM OR SOLVE RELATEDPROBLEMS SYMANTEC CORP ON THE OTHER HAND SPECIALIZES IN MAKING UTILITIES SOFTWARE AND HAS SO FAR BEING ABLE TO KEEP MICROSOFT AT BAY SAID BETTY LYTER AN ANALYST WITH MONTGOMERY SECURITIES STILL SYMANTEC HAS BEEN LACKING IN WINDOWSBASED APPLICATION SOFTWARE PRODUCTS WHICH HAS HURT THE COMPANY AS THE MARKET SHIFTS AWAY FROM DOSBASED PRODUCTS TO WINDOWSBASED PRODUCTS MS LYTER SAID SHE ESTIMATED THAT FOR ITS FISCAL FOURTH QUARTER THE CUPERTINO CALIF COMPANY WILL POST A NET LOSS OF 2 MILLION OR EIGHT CENTS A SHARE COMPARED WITH NET INCOME OF 77 MILLION OR 31 CENTS A SHARE A YEAR EARLIER REVENUE IS EXPECTED TO HAVE DROPPED 20 TO 50 MILLION FROM 623 MILLION HOWEVER MS LYTER SAID SYMANTEC IS NOW ENTERING A NEW PRODUCT CYCLE WITH NEW VERSIONS OF ITS SOFTWARE WHICH SHOULD HELP PULL IT OUT OF THE DOLDRUMS IN THE ENTERTAINMENT SOFTWARE MARKET ELECTRONIC ARTS INC HAS CARVED OUT A NICE NICHE MS LYTER SAID THE SAN MATEO CALIF COMPANY HAS BEEN CRANKING OUT SOFTWARE USED IN GAME CARTRIDGES PLAYED ON VIDEO GAME SYSTEMS MADE BY JAPAN'S SEGA ENTERPRISES INC AND NINTENDO OF AMERICA INC ELECTRONIC ARTS TARGETS SPORTS ENTHUSIASTS MAKING GAMES RELATED TO GOLF CAR RACING AND OTHER SPORTS ITS STRATEGY IS BASED ON DEVELOPING INCREASINGLY COLORFUL AND HARDERTOPLAY VERSIONS OF THE SAME GAMES HOPING TO HOOK EXISTING CUSTOMERS WHILE APPEALING TO FIRSTTIME BUYERS WITH NEW GAMES SHE SAID ELECTRONIC ARTS IS EXPECTED TO REPORT A 38 RISE IN FIRSTQUARTER NET INCOME TO 73 MILLION OR 15 CENTS A SHARE FROM 53 MILLION OR 11 CENTS A SHARE A YEAR EARLIER MS LYTER SAID REVENUE IS EXPECTED TO HAVE RISEN 40 TO 672 MILLION FROM 48 MILLION 9304160139 930416 CREDIT RATINGS INFINITY BROADCASTING CORP NEW YORK STANDARD & POOR'S CORP RAISED ITS RATING ON THE RADIO BROADCASTER'S 200 MILLION OF SENIOR SUBORDINATED NOTES DUE 2002 TO SINGLEBPLUS FROM SINGLEB THE UPGRADE REFLECTS EXPECTED REVENUE AND CASH FLOW IMPROVEMENTS AS TOTAL RADIO AD SPENDING INCREASES AND AS INFINITY INCORPORATES NEWLY ACQUIRED STATIONS INTO ITS GROUP S&P SAID INFINITY REMAINS INTERESTED IN ACQUISITIONS AND HAS TAKEN ADVANTAGE OF NEW MULTIPLESTATION OWNERSHIP RULES WITHOUT PAYING EXCESSIVE PRICES 9304160138 930416 YOUR MONEY MATTERS WEEKEND REPORT MAYBE IT'S TIME TO COME CLEAN WITH UNCLE SAM BY SCOTT R SCHMEDEL STAFF REPORTER OF THE WALL STREET JOURNAL YOU SAY YOU MISSED THE MIDNIGHT DEADLINE FOR FILING YOUR TAX RETURN YOU DIDN'T EVEN ASK FOR AN EXTENSION AND THIS ISN'T THE FIRST TIME EITHER BELIEVE IT OR NOT YOU'VE GOT LOTS OF COMPANY SIX MILLION TO 10 MILLION AMERICANS WHO ARE REQUIRED BY LAW TO FILE FEDERAL INCOMETAX RETURNS DON'T FILE THEM THE INTERNAL REVENUE SERVICE ESTIMATES MOST OF THESE PEOPLE AREN'T REGULAR READERS OF THIS COLUMN OF COURSE BUT YOU MAY WELL KNOW SOMEONE WHO FAILED TO FILE A RETURN A COUPLE OF YEARS AGO BECAUSE OF FINANCIAL OR PERSONAL TRAUMA AND WHO HAS BEEN AFRAID TO FILE EVER SINCE SOMEONE WHO WANTS TO COME CLEAN START FILING AND WASH AWAY THE ANXIETY BUT WHO EXPECTS THE IRS TO DEMAND A POUND OF FLESH AND MAYBE THAT SOMEONE IS YOU WELL WIPE THE SWEAT OFF YOUR FACE AND READ ON THE IRS IS REACHING OUT TO UNKNOWN NONFILERS OFFERING TO WAIVE CRIMINAL PROSECUTION AND TO TREAT THEM LENIENTLY IN OTHER WAYS IF THEY UNMASK VOLUNTARILY THE IRS ISN'T OFFERING A TRUE AMNESTY THAT IS ABSOLUTE IMMUNITY FROM PROSECUTION ONLY CONGRESS COULD DO THAT BUT THIS IS AS CLOSE TO AMNESTY AS YOU COULD EVER GET DECLARES STEVEN M HARRIS A MIAMI LAWYER WHO IS ACTIVE IN THE AMERICAN BAR ASSOCIATION'S EFFORTS TO PROMOTE THE PROGRAM YOU OUGHT TO STRIKE EARLY WHILE THERE STILL IS ENTHUSIASM FOR THE PROGRAM AMONG IRS AGENTS ADDS ROBERT A WHERRY A DENVER LAWYER IF YOU STILL JUST WANT TO TAKE YOUR CHANCES CONSIDER THIS THE IRS HAS ASSIGNED AN ADDITIONAL 2000 AGENTS TO FERRETING OUT PEOPLE LIKE YOU THE CIVIL PENALTIES WHICH COME ON TOP OF TAXES AND INTEREST ARE HEAVY THE LATEFILING PENALTY IS 5 A MONTH ON THE BALANCE DUE UP TO A TOTAL OF 25 THE FAILURETOPAY PENALTY IS 05 A MONTH UP TO A TOTAL OF 25 OTHER PENALTIES MAY APPLY MOREOVER IF THE IRS AND THE JUSTICE DEPARTMENT CHOOSE TO PROSECUTE FOR WILLFUL FAILURE TO FILE YOU COULD BE SUBJECT TO A FINE OF AS MUCH AS 25000 IMPRISONMENT FOR AS LONG AS A YEAR OR BOTH FOR EACH MISSING RETURN CONVICTION FOR TAX EVASION CARRIES A FINE OF AS MUCH AS 250000 IMPRISONMENT FOR AS MANY AS FIVE YEARS OR BOTH LAST MONTH A SEATTLE MAN WHO HAD BEEN CONVICTED OF FAILING TO FILE FOR SEVEN YEARS WAS SENTENCED TO 14 MONTHS IN PRISON AND FINED 3000 HIS WIFE AND CODEFENDANT WAS SENTENCED TO FIVE YEARS' PROBATION AND FOUR MONTHS' HOME DETENTION AND FINED 3000 THE LENIENCY PROGRAM IS SCHEDULED TO RUN THROUGH SEPTEMBER 1994 ALTHOUGH THE IRS HASN'T ACTUALLY SET A DEADLINE IT IS STRIVING TO INDUCE VOLUNTARY COMPLIANCE IN AN ALMOST LASTDITCH EFFORT TO COLLECT UNPAID TAXES THE AGENCY CONCEDES IT CAN'T CATCH ALL THE NONFILERS AND COLLECT THE ESTIMATED 7 BILLION OR MORE THAT THEY DON'T PAY EACH YEAR SO IT IS APPEALING TO DELINQUENTS WHO AREN'T DELIBERATELY TRYING TO EVADE TAXES AND WHO MAY REJOIN THE TAX SYSTEM IF THE PAIN IS BEARABLE SEVERAL STATES ARE COOPERATING WITH THE IRS IN JOINT NONFILER PROJECTS SO FAR ACTING IRS COMMISSIONER MICHAEL DOLAN SAYS MORE THAN 200000 PEOPLE HAVE TELEPHONED OR VISITED THE IRS TO GET INFORMATION ABOUT FILING OVERDUE RETURNS FROM OCTOBER THROUGH JANUARY THE IRS RECEIVED MORE THAN FOUR MILLION LATE RETURNS FROM INDIVIDUALS AND BUSINESSES OVER THE YEARS A LOT OF PROMINENT FOLKS WHO CERTAINLY SHOULD HAVE KNOWN BETTER HAVE TRIPPED OVER THE FILING REQUIREMENT IN 1976 THE LATE ANTHONY L CONRAD LOST HIS JOB AS CHAIRMAN AND PRESIDENT OF RCA CORP AFTER THE HUGE ELECTRONICS CORPORATION'S DIRECTORS LEARNED HE HADN'T FILED RETURNS FOR SIX YEARS HE WASN'T PROSECUTED AND HE NEVER GAVE AN EXPLANATION DURING HIS ELECTION CAMPAIGN IN 1989 NEW YORK CITY'S MAYOR DAVID N DINKINS WAS BATTERED WITH REMINDERS THAT HE HAD FAILED TO FILE RETURNS FOR 1968 THROUGH 1971 NOW IF YOU WANT TO TAKE ADVANTAGE OF UNCLE SAM'S GENTLER SIDE IT MIGHT NOT PAY TO RUSH DOWN TO THE NEAREST TAX OFFICE AND UNBURDEN YOUR CONSCIENCE MIDDLE AND UPPERINCOME NONFILERS SHOULD SEEK EXPERT ADVICE BEFORE REVEALING THEMSELVES TO THE IRS LAWYERS AND ACCOUNTANTS SAY THIS WARNING GOES ESPECIALLY TO PEOPLE WHO ARE PROFESSIONALS OR SELFEMPLOYED HAVE COMPLEX RETURNS HAVE ILLIQUID ASSETS OR LACK INCOME AND DEDUCTION RECORDS ANYONE WHO ISN'T CERTAIN WHETHER SOME SOURCE OF INCOME OR PAST ACTION MIGHT BE CONSIDERED ILLEGAL OR EVIDENCE OF WILLFUL TAX EVASION SHOULD SEE A LAWYER FIRST SAYS WALTER T COPPINGER A CERTIFIED PUBLIC ACCOUNTANT AND TAX PARTNER OF ERNST & YOUNG IN DALLAS SO SHOULD SOMEONE WHO HAS A HIGH PROFILE IN HIS OCCUPATION OR COMMUNITY BUT A KNOWLEDGEABLE ACCOUNTANT OR ENROLLED AGENT CAN HANDLE ALL CONTACTS WITH THE IRS FOR SOMEONE WITH A FAIRLY ROUTINE RETURN WHO DIDN'T FILE BECAUSE OF UNUSUAL CIRCUMSTANCES SUCH AS A DEATH IN THE FAMILY SAYS ALAN R EINHORN A BETHESDA MD CPA AND FOR MOST LOWINCOME NONFILERS WITH SIMPLE RETURNS TAX PRACTITIONERS SAY IT'S PROBABLY NOT RISKY TO RUN DIRECTLY TO THE NEAREST IRS OFFICE IN MANY CITIES VOLUNTEERS FROM THE AMERICAN BAR ASSOCIATION AND OTHER GROUPS OFFER FREE COUNSELING TO LOWINCOME NONFILERS TRUTH BE TOLD THE IRS FOR DECADES HASN'T SOUGHT CRIMINAL PROSECUTION OF NONFILERS WHO TURN THEMSELVES IN BEFORE IT TRACKS THEM DOWN BUT IT NOW HAS A WRITTEN POLICY STATING THAT IT GENERALLY WON'T SEEK PROSECUTION OF ANYONE WHO FILES DELINQUENT RETURNS BEFORE NOTIFICATION OF A CRIMINAL INVESTIGATION FOR FAILURE TO FILE THAT MEANS THE WAIVER IS AVAILABLE EVEN TO PEOPLE WHO HAVE HAD SOME OTHER KIND OF INQUIRY FROM THE IRS INCLUDING A CONTACT BY AN AUDITOR OR A COLLECTION AGENT THOSE AGENTS AREN'T CRIMINAL INVESTIGATORS EVEN TAX PRACTITIONERS ARE ELIGIBLE THE IRS SAYS EXCEPT IN EGREGIOUS CASES IN FACT THE GOVERNMENT PROSECUTES SO FEW FAILURETOFILE CASES 300 OR SO A YEAR THAT THE WAIVER IS INSIGNIFICANT FOR THE VAST MAJORITY OF NONFILERS THEY DERIVE FAR GREATER BENEFITS TAX ADVISERS SAY FROM GETTING THE JUMP ON THE IRS AND STAVING OFF ITS FULL ARSENAL OF CIVIL WEAPONS GARNISHMENTS OF SALARIES LIENS ON BANK ACCOUNTS AND PROPERTY AND SEIZURES THE IRS'S OFFER APPLIES ONLY TO TAXPAYERS WITH INCOME FROM LEGAL SOURCES IT REQUIRES THEM TO FILE DELINQUENT RETURNS THAT ARE CORRECT ACCORDING TO THE BEST INFORMATION AVAILABLE AND TO PAY WHAT THEY OWE OR AGREE TO AN ARRANGEMENT TO PAY IT THEN THE TAXPAYERS MUST CONTINUE TO FILE ANNUAL RETURNS FOR FIVE YEARS OR RISK HAVING THE CASE REOPENED THERE ARE OTHER BLANDISHMENTS THE IRS WILL ACCEPT PAYMENT IN INSTALLMENTS AND EVEN REDUCE TAX BILLS FOR PEOPLE WHO HONESTLY CAN'T PAY IN MOST CASES IT WON'T ASK FOR RETURNS GOING BACK MORE THAN SIX YEARS INTEREST AND CIVIL PENALTIES DO APPLY AND THE IRS CAN'T ABATE INTEREST BUT IT SAYS IT WILL CONSIDER EXPLANATIONS OF REASONABLE CAUSE TO ABATE PENALTIES FOR EXAMPLE A DEATH IN THE FAMILY OR A HOUSE FIRE THAT DESTROYED RECORDS MAY BE A REASONABLE CAUSE PEOPLE WHO FESS UP DON'T HAVE A GREATER CHANCE THAN OTHER TAXPAYERS OF BEING AUDITED THE IRS SAYS YOUR RETURN WILL GO THROUGH THE SAME AUDITSELECTION SCREENING AS OTHER RETURNS FINALLY IT'S ALWAYS POSSIBLE THE GOVERNMENT OWES YOU MONEY THAT'S RIGHT THE IRS ESTIMATES IT OWES REFUNDS TO A THIRD OF ALL NONFILERS AND REFUNDS ARE LOST IF THEY AREN'T CLAIMED WITHIN THREE YEARS IN ANY CASE PRACTITIONERS AGREE NONFILERS SHOULD GET THE PROCESS MOVING AS SOON AS POSSIBLE PROCRASTINATION IS A TAXPAYER'S WORST ENEMY SAYS PROF MICHAEL MULRONEY ASSISTANT DIRECTOR OF THE STUDENT TAX CLINIC AT VILLANOVA UNIVERSITY'S LAW SCHOOL THE CHANCE IS TOO GREAT THAT THE IRS IS GOING TO CATCH UP WITH THE NONFILER 9304160137 930416 CREDIT RATINGS MOODY'S DOWNGRADES AMR CORP'S DEBT TOTALING 9 BILLION NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT DOWNGRADED AMR CORP'S DEBT TO THE LOWEST RATING ALLOWED FOR IT TO STILL BE CONSIDERED INVESTMENTGRADE CITING CONTINUING LOSSES AND REDUCED FINANCIAL FLEXIBILITY MOODY'S LOWERED ITS RATINGS ON ABOUT 9 BILLION OF AMR'S LONGTERM DEBT THE DOWNGRADES INCLUDE AMR'S SENIOR UNSECURED DEBT TO BAA3 FROM BAA2 SUBORDINATED LYONS TO BA2 FROM BAA3 AND INDUSTRIAL REVENUE BONDS TO BAA2 FROM BAA1 MOODY'S SAID THE FORT WORTH TEXAS AIRLINE HOLDING COMPANY IS CUTTING CAPACITY AND REDUCING SERVICE TO SOME UNPROFITABLE DESTINATIONS THE RATINGS AGENCY EXPECTS LOSSES TO CONTINUE AT REDUCED LEVELS FOR THE NEAR TERM MOODY'S SAID IT REMAINS CAUTIOUS FOR THE LONG TERM BECAUSE OF ONGOING INDUSTRY VOLATILITY AMR'S RATINGS WERE LOWERED TO JUNK STATUS BY STANDARD & POOR'S CORP LAST MONTH IN FORT WORTH MICHAEL J DURHAM SENIOR VICE PRESIDENT AND TREASURER OF AMR SAID THE DOWNGRADE IS ANOTHER INDICATION OF THE DISMAL FINANCIAL CONDITION OF THE US AIRLINE INDUSTRY HE ADDED THAT WHILE IT HAS NO IMMEDIATE IMPACT ON THE FINANCING PLANS OF AMR AND AMERICAN AIRLINES IT WILL MAKE IT MORE DIFFICULT AND EXPENSIVE TO RAISE CAPITAL IF AND WHEN THE NEED ARISES 9304160136 930416 AN AID PACKAGE FOR RUSSIA BEYOND CLINTON'S BY CHARLES WOLF JR THE GROUP OF SEVEN MEETING IN TOKYO THIS WEEK GAVE ONLY LUKEWARM SUPPORT TO PRESIDENT CLINTON'S 18 BILLION AID PACKAGE FOR RUSSIA BUT EVEN WITH FULL G7 SUPPORT THE CLINTON PACKAGE FALLS SHORT OF HELPING RUSSIA MAKE ITS TRANSITION TO A GENUINELY LIBERALIZED MARKET ECONOMY AN ASSISTANCE PACKAGE HOWEVER CAN BE DESIGNED TO HELP RUSSIA MOVE IN THIS DIRECTION WHILE REMAINING WITHIN THE TIGHT BUDGET CONSTRAINTS FACING THE G7 MEMBERS SUCH A PACKAGE SHOULD INCLUDE FOUR ELEMENTS THAT ARE NOW LACKING IN MR CLINTON'S PLAN RESTRUCTURING AND SWAPPING FOREIGN DEBT AT THE END OF 1991 RUSSIA UKRAINE AND SIX OTHER FORMER SOVIET REPUBLICS AGREED TO ASSUME JOINT AND SEVERAL RESPONSIBILITY FOR SERVICING THE ENTIRE SOVIET EXTERNAL DEBT THIS DEBT TOGETHER WITH THE DEBT INCURRED IN 1992 AND 1993 AMOUNTS TO ABOUT 80 BILLION DURING THE NEXT THREE YEARS THE ANNUAL BURDEN REPRESENTED BY SERVICING LONGTERM HARDCURRENCY DEBT ALONE WILL BE BETWEEN 10 BILLION AND 14 BILLION THEREBY PREEMPTING BETWEEN A THIRD AND A HALF OF RUSSIA'S ANNUAL HARDCURRENCY FOREIGNEXCHANGE EARNINGS TWO MEASURES CAN EASE THIS BURDEN THE FIRST WOULD HAVE WESTERN CREDITORS FORGIVE ALL OR MOST OF THE DEBT INCURRED BEFORE THE FORMAL DISSOLUTION OF THE SOVIET UNION ON JAN 1 1992 GERMANY ITALY AND THE OTHER WESTERN EUROPEAN COUNTRIES ARE COLLECTIVELY OWED 70 OF THE TOTAL THE US ONLY 5 MOST OF THE CREDITORS' BANKS HAVE BUILT UP LOSS RESERVES IN ANTICIPATION OF THIS PROSPECT SO THE FINANCIAL IMPACT WOULD BE MODEST MOREOVER LINKING THE DEBT CUTOFF TO THE SOVIET UNION'S DISSOLUTION WOULD AVOID A PRECEDENT THAT OTHER DEBTOR COUNTRIES MIGHT OTHERWISE INVOKE THE SECOND MEASURE WOULD BE TO SWAP SOME OF THE REMAINING DEBT FOR EQUITY IN STATE ENTERPRISES UNDER A RUSSIAN LAW ADOPTED LAST YEAR 35000 STATE ENTERPRISES ARE TO BE PRIVATIZED OVER THE NEXT THREE YEARS THE PROCESS CALLS FOR 25 OF THE SHARES TO BE GIVEN TO WORKERS AND MANAGERS 30 TO 35 TO BE AUCTIONED TO RUSSIA'S 150 MILLION CITIZENS IN EXCHANGE FOR RUBLE VOUCHERS ALREADY DISTRIBUTED TO THEM AND THE REMAINING SHARES TO BE RETAINED BY THE STATE IF SOME OF THESE GOVERNMENTHELD SHARES WERE SWAPPED FOR DEBT LIABILITIES THE BURDEN OF SERVICING THE DEBT WOULD BE LIGHTENED MOREOVER THE FOREIGN CREDITORS WHO ACQUIRED THESE ASSETS WOULD WANT TO ENHANCE THEIR STAKES BY ADDING MANAGEMENTS SKILLS TECHNOLOGY AND IMPROVED ACCESS TO WESTERN MARKETS AS WELL AS NEW INVESTMENT ENCOURAGING FOREIGN INVESTMENT BY EXPANDING RISK INSURANCE THE US HAS A MODEST PROGRAM FOR ENCOURAGING FOREIGN INVESTMENT IN RUSSIA AND UKRAINE BY PROVIDING INVESTORS WITH INSURANCE AGAINST THEIR EXPOSURE TO THE POLITICAL RISKS OF EXPROPRIATION OR VIOLENCE THE INSURANCE IS WRITTEN BY A GOVERNMENT AGENCY THE OVERSEAS PRIVATE INVESTMENT CORPORATION FOR A PREMIUM THAT IS LESS THAN HALF THE COST OF ROUGHLY COMPARABLE RISK INSURANCE IN THE COMMERCIAL MARKET TO DATE OPIC HAS BEEN UNDERSTANDABLY RELUCTANT TO BURDEN THE AMERICAN TAXPAYER WITH THE OBLIGATION OF COMPENSATING INVESTORS IF THERE IS TURMOIL IN RUSSIA OR UKRAINE IT HAS APPROVED INSURANCE APPLICATIONS FOR ONLY SEVEN INVESTMENTS ALL IN RUSSIA WITH A FACE VALUE OF 121 MILLION THE APPLICATION POOL FROM WHICH THESE INVESTMENTS WERE SELECTED BY CONTRAST CONSISTED OF 256 CANDIDATES FOR RUSSIA VALUED AT 22 BILLION AND 39 FOR UKRAINE VALUED AT 17 BILLION FOREIGN INVESTMENT IN RUSSIA AND UKRAINE CAN BE BOOSTED BY GALVANIZING OPIC'S ACTIVITIES FOR EXAMPLE IT IS NOW LIMITED TO COVERING NO MORE THAN 200 MILLION OF ANY SINGLE COMPANY'S INVESTMENT THAT LIMIT SHOULD BE REMOVED THE COMMERCIAL INSURANCE MARKET SHOULD PLAY A LARGER ROLE TOO TO COMPANIES THAT ISSUE POLITICAL RISK INSURANCE THE GOVERNMENT MIGHT OFFER A TAX CREDIT OF SAY 50 ON THE PREMIUMS THAT ARE CHARGED ENSURING RUSSIA AND UKRAINE A REASONABLE SHARE OF THE WORLD ARMS MARKET IN THE LATE 1980S INTERNATIONAL WEAPONS SALES ACCOUNTED FOR 20 OF THE SOVIET UNION'S EXPORT EARNINGS COMPARED WITH ABOUT 4 FOR THE US TO BE SURE THE US HAS A GENERAL INTEREST IN LIMITING THE ARMS MARKET AND DOWNSIZING THE MILITARY INDUSTRIES OF RUSSIA AND UKRAINE EVEN SO BOTH FORMER SOVIET REPUBLICS HAVE A CRITICAL NEED FOR HARDCURRENCY EXPORTS AND THEIR COMPARATIVE ADVANTAGE LIES IN ARMS SALES OF COURSE SPECIAL ATTENTION SHOULD BE DEVOTED TO CONTROLLING THE EXPORT OF SUCH SYSTEMS AS SUBMARINES CRUISE MISSILES AND ADVANCED SEA AND LAND MINES THAT WOULD BE ACUTELY DESTABILIZING BUT BEYOND THAT THE US AND OTHER MAJOR WEAPONS EXPORTERS FRANCE BRITAIN CHINA AND GERMANY SHOULD ESTABLISH A CARTELLIKE MECHANISM THAT WOULD GIVE TO RUSSIA AND UKRAINE AN APPRECIABLE SHARE OF THE CONVENTIONAL ARMS MARKET SAY 20 OF THE 35 BILLION OF ANNUAL WEAPONS SALES DISMANTLING NUCLEAR WEAPONS AND RETROFITTING NUCLEAR REACTORS IN 1992 THE DEFENSE DEPARTMENT ALLOCATED 800 MILLION FOR DISMANTLING TACTICAL NUCLEAR WEAPONS IN RUSSIA AND UKRAINE BUT LESS THAN 40 MILLION HAS BEEN SPENT SO FAR DUE TO CONTRACTUAL AND LOGISTICAL DELAYS THE FULL AMOUNT SHOULD BE PUT TO EFFECTIVE USE AS SOON AS POSSIBLE AND MONEY SHOULD BE ADDED TO THE FUND FOR RETROFITTING WITH RADIATIONCONTAINMENT STRUCTURES THE SEVERAL DOZEN CHERNOBYLLIKE REACTORS IN RUSSIA AND OTHER REPUBLICS AND FOR DISMANTLING THE 300 POWER REACTORS ON RUSSIA'S NUCLEAR SUBMARINES THAT ARE BEING DECOMMISSIONED GIVEN THE DISTORTING GIGANTISM OF THE SOVIET MILITARY SECTOR ANY EFFORT TO HELP RUSSIA AND UKRAINE INEVITABLY INVOLVES SUCH MILITARY MATTERS BUT OF COURSE HELP THAT IS MORE STRICTLY ECONOMICLIKE OFFERING DEBT ABATEMENT AND PROMOTING FOREIGN INVESTMENT IS EQUALLY IMPORTANT AN EFFECTIVE AID PACKAGE SHOULD INCLUDE BOTH ECONOMIC AND MILITARY ELEMENTS IT SHOULD BE PURPOSEFUL RATHER THAN PERSONALADDRESSING MATTERS THAT WHILE ENDORSED BY PRESIDENT YELTSIN WOULD OUTLIVE HIS TENURE MR WOLF IS DEAN OF THE RAND GRADUATE SCHOOL KINGMAN MALLORY A GRADUATE FELLOW ASSISTED IN RESEARCH FOR THIS ARTICLE 9304160134 930416 WHO'S NEWS MICROTEK MEDICAL INC MICROTEK MEDICAL INC COLUMBUS MISS W LYNTON EDWARDS III WAS NAMED A DIRECTOR OF THIS MEDICAL SUPPLY MANUFACTURER INCREASING THE BOARD TO SIX MEMBERS MR EDWARDS IS PRESIDENT OF BENJAMEN ANSEHL CO A MAKER OF PRIVATELABEL BEAUTY PRODUCTS 9304160133 930416 INTERNATIONAL MOODY'S LOWERS TRIPLEA RATING ON MATSUSHITA DEBT BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO MATSUSHITA ELECTRIC INDUSTRIAL CO THE WORLD'S LARGEST MAKER OF CONSUMER ELECTRONICS AND HOME APPLIANCES SUFFERED ANOTHER BLOW TO ITS PRESTIGE WHEN MOODY'S INVESTORS SERVICE INC STRIPPED IT OF ITS TRIPLEA RATING FOR LONGTERM DEBT MOODY'S BUMPED DOWN THE OSAKABASED COMPANY'S DEBT RATING TWO NOTCHES TO DOUBLEA2 THE MOVE AFFECTS ABOUT 74 BILLION OF MATSUSHITA'S DEBT WHICH WILL NOW BE MORE EXPENSIVE TO REFINANCE LIKE MOST OF JAPAN'S ELECTRONICS MAKERS MATSUSHITA HAS SEEN ITS PROFIT PLUMMET OVER THE PAST SEVERAL YEARS AS SALES FELL AND FIXED COSTS REMAINED HIGH MATSUSHITA HAS ENJOYED A TRIPLEA CREDIT RATING SINCE JANUARY 1981 SO THE DOWNGRADE IS IN SOME RESPECTS A VOTE OF NO CONFIDENCE IN THE COMPANY'S REACTION TO ITS SLUMP IT ISN'T JUST THAT THERE IS A ONETIME SALES OR PROFIT DECLINE SAID TATSUYA MIZUNO A SENIOR ANALYST AT MOODY'S JAPAN KK WE THINK THERE ARE SOME FUNDAMENTAL STRUCTURAL CHANGES IN THE JAPANESE CONSUMER ELECTRONICS MARKET COMPARED WITH ITS COMPETITORS MR MIZUNO SAID MATSUSHITA'S RELATIVE STRENGTH HAS BEEN REDUCED TO SOME EXTENT IN PARTICULAR MR MIZUNO CITED SATURATION OF MARKETS FOR PRODUCTS SUCH AS TELEVISIONS VIDEOCASSETTE RECORDERS AND AUDIO EQUIPMENT A DEARTH OF SUCCESSFUL NEW PRODUCTS AND A FALLOFF IN DEMAND BY JAPANESE CONSUMERS MATSUSHITA HAS SAID IT INTENDS TO EMPHASIZE INNOVATION AND HIGHER VALUEADDED PRODUCTS BUT ITS STRATEGY HAS BEEN SLOW TO SHOW RESULTS ON THE POSITIVE SIDE MOODY'S SAID MATSUSHITA IS MODERATELY LEVERAGED AND POSSESSES CONSIDERABLE BALANCESHEET LIQUIDITY GIVING THE COMPANY FINANCIAL FLEXIBILITY WHEN BUSINESS IS SLOW BUT SOME ANALYSTS ARGUE THAT MOODY'S ACTION IS BEHIND THE CURVE A TURNAROUND IN THE DOMESTIC MARKET WILL TURN AROUND THE COMPANY'S EARNINGS SAID DAVID BENDA A TECHNOLOGY ANALYST WITH BARCLAYS DE ZOETE WEDD SECURITIES JAPAN LTD IN TOKYO MR BENDA SAID HE DIDN'T THINK MATSUSHITA HAD SERIOUSLY ATTACKED ITS STRUCTURAL PROBLEMS HOWEVER AS EVIDENCE THAT THE COMPANY MAY BENEFIT FROM A CYCLICAL RECOVERY IN ITS CORE BUSINESS HE CITED NEWS REPORTS THAT MARCH CAMCORDER SALES WERE UP 28 COMPARED WITH A YEAR AGO THE RATINGS SERVICE ALSO DOWNGRADED ITS RATINGS FOR THREE OF MATSUSHITA'S FINANCIAL SUBSIDIARIES MCA FUNDING CORP PANASONIC CAPITAL CORP AND PANASONIC FINANCE NETHERLANDS BV TO DOUBLEA2 FROM TRIPLEA MOODY'S WENT EASIER ON MCA INC MATSUSHITA'S WHOLLY OWNED HOLLYWOOD STUDIO WHICH RECEIVED A ONENOTCH DOWNGRADE TO SINGLEA2 FROM SINGLEA1 9304160132 930416 REVIEW & OUTLOOK EDITORIAL ASIDES POLITICAL GENIUS WE HAVE BEEN AGNOSTIC ON THE BELTWAY CONSENSUS THAT THE NEW PRESIDENT IS THE MOST REMARKABLE POLITICAL GENIUS TO HAVE HIT WASHINGTON SINCE MAYBE FDR WELL WE HAVE TO ADMIT THAT WE BUCKLED YESTERDAY MORNING APRIL 15 WHEN WE AWOKE TO HEADLINES AND NEWS REPORTS THAT WHITE HOUSE OPENS DOOR TO NEW TAX YES AT THE VERY MOMENT THAT VIRTUALLY EVERY WAGEEARNING PERSON IN AMERICA WAS MAILING IN CHECKS FOR INCOME TAX PAYMENTS TO THE FEDERAL GOVERNMENT STATES COUNTIES AND CITIES HERE WAS THE CLINTON ADMINISTRATION ANNOUNCING THE PROSPECT OF A NATIONAL SALES TAX WHAT A STROKE CLEARLY THE MENSALIKE CALCULATION HERE IS THAT MOST PEOPLE AGOG FROM THEIR BOUT WITH THE IRS WOULD BE TOO DRAINED TO REACT TO YET ANOTHER FEDERAL TAX PRETTY DARN CLEVER 9304160131 930416 HEARD ON THE STREET FAST MONEY IN SAN DIEGO SWINGS STOCKS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO WHENEVER A TECHNOLOGY STOCK IS SOARING ALL OF THE BIG INVESTORS WANT TO KNOW WHY BUT A GIANT SUCH AS FIDELITY INVESTMENTS MIGHT NOT GET THE FIRST PHONE CALL FROM THE ANALYST WHO KNOWS THE SCORE THAT CALL MIGHT GO TO SAN DIEGO WHERE AN 81 BILLION HAIRTRIGGER MONEY MANAGER IS ALREADY IN THE SHARES AND BUYING MORE MEET NICHOLASAPPLEGATE ONE OF THE TOP GUNS OF THE QUICKDRAW MONEY MANAGEMENT STYLE KNOWN AS MOMENTUM INVESTING MOMENTUM PLAYERS ARE INCREASINGLY IMPORTANT IN THE US STOCK MARKET ESPECIALLY IN SMALL STOCKS WHERE A BIG BUYER OR SELLER CAN ROIL PRICES IT'S LIKE BEING ON A RAFT IN SHARKINFESTED WATERS SAYS STEVEN VANNELLI SENIOR VICE PRESIDENT AT KJMM INVESTMENT MANAGEMENT IN SAN FRANCISCO EACH TIME A RAFT SPRINGS A LEAKBOOM THEY JUMP TO ANOTHER ONE IF YOU ARE ON THE WRONG RAFT YOU SINK TO THE SHARKS THESE FASTHAND PLAYERS BUY AND SELL RAPIDLY OFTEN DUMPING POSITIONS COMPLETELY AT THE FIRST HINT OF BAD NEWS ANY HINT OF A SLOWDOWN IN QUARTERLY EARNINGS AND THEY'RE OUT MR VANNELLI SAYS NO APOLOGIES FROM ARTHUR NICHOLAS 46 YEARS OLD WHO FOUNDED THE FIRM IN 1984 MY ATTITUDE HAS ALWAYS BEEN WE'RE HERE FOR ONE REASON TO MAKE MONEY WE DON'T CARE IF IT'S A BIOTECH COMPANY OR A FUNERAL HOME AS LONG AS IT MEETS THE CRITERIA WE'RE LOOKING FOR THOSE CRITERIA ARE IMPROVING BUSINESS CONDITIONS THAT ARE CONFIRMED BY RISING EARNINGS ESTIMATES AND STOCK PRICES MOMENTUM PLAYERS PAY LESS ATTENTION TO TRADITIONAL VALUATION YARDSTICKS SUCH AS PRICEEARNINGS RATIOS THEY CAN INFURIATE TRADITIONAL STOCK PICKERS WHO SELL OUT WHEN A STOCK SEEMS OVERPRICED ONLY TO WATCH MOMENTUM PLAYERS RUN THE ISSUE UP ANOTHER 20 POINTS THEN SUDDENLY DUMP IT WHEN EARNINGS GROWTH SLOWS THE IMPACT OF MOMENTUM PLAYERS IS GETTING BIGGER AND BIGGER AND BIGGER MR VANNELLI SAYS NICHOLASAPPLEGATE HAS NO INHOUSE ANALYSTS AND REMAINS 100 INVESTED ALWAYS SEEKING THE HOTTEST STOCK PORTFOLIOS TURN OVER 100 A YEAR OR MORE INFORMATION ISN'T A CASUAL COMPONENT OF THE INVESTMENT PROCESS GETTING THE RIGHT CALL FROM AN ANALYST COULD BE A MATTER OF MAKING OR LOSING MILLIONS WHEN A STOCK GROUP IS RUNNING SAYS THOMAS ESCOTT OIL STOCK ANALYST AT REGIONAL BROKER ROBINSON HUMPHREY CO THEY ARE CALLING VERY FREQUENTLY MAYBE DAILY HE ADDS THEY WANT TO KNOW ABOUT CHANGE AND NUANCE NEW INFORMATION THE FINE GRAIN NICHOLASAPPLEGATE'S FIVE PORTFOLIO MANAGERS ARRIVE AT 5 AM PDT AND SIT IN A TIGHT BLOCK OF OPEN DESKS LOADED WITH SCREENS MR NICHOLAS THINKS OF HIMSELF AS A PLAYERCOACH AND SITS AMONG THEM THEY SHOUT NAMES OF STOCKS AND NEWS BACK AND FORTH PERFORMANCE IS MONITORED UP TO THE SECOND RED DIGITS ON THE SCREENS MEAN THE PORTFOLIOS ARE DOWN BLUE DIGITS MEAN THEY'RE UP MY PHONE NEVER STOPS SAYS CATHERINE AVERY 33 THE PARTNER IN CHARGE OF THE FIRM'S CENTERPIECE 24 BILLION EMERGING GROWTH ACCOUNT SHE FIELDS AS MANY AS 40 PHONE CALLS AN HOUR FROM ANALYSTS MANY AT REGIONAL FIRMS CLOSE TO LOCAL COMPANIES I GO NONSTOP UNTIL THE MARKET CLOSES AT 1 PM SHE SAYS WE DON'T GO TO LUNCH OR ANYTHING LIKE THAT MS AVERY ALSO MANAGES THE 191 MILLION MINICAP ACCOUNT ALL TOLD HER ATTENTION IS RIVETED TO WHAT'S GOING ON IN SOME 600 DIFFERENT STOCKS SHE BEGINS TO REVIEW CHARTS OF HER STOCKS SUNDAYS AND ANALYSTS WILL FREQUENTLY CALL DURING THE WEEKEND WHEN THERE IS SOMETHING HAPPENING IN A STOCK CATHERINE AND NICHOLASAPPLEGATE CAN BE QUITE DEMANDING SAYS JAMES TOWNSEND PRESIDENT OF SOUNDVIEW FINANCIAL GROUP A TECHNOLOGY STOCK RESEARCH FIRM IF CATHERINE OWNS IT AND IT'S AN INTENSIVE POSITION CHANCES ARE THEY WILL GET THE FIRST CALL THEY EXPECT THAT FROM ME THEY PAY FOR IT IN THE THREE YEARS THROUGH 1992 NICHOLASAPPLEGATE'S EMERGING GROWTH ACCOUNT HAS RETURNED AN AVERAGE 2444 COMPARED WITH 1284 FOR THE WILSHIRE ASSOCIATES SMALL COMPANY GROWTH INDEX THE MIDCAP ACCOUNT RUN BY PARTNER JOHN MARSHALL 35 IS UP 2318 ANNUALLY OVER THREE YEARS VS 1491 IN THE COMPARABLE WILSHIRE INDEX THE CONVERTIBLE BOND ACCOUNT'S THREEYEAR AVERAGE ANNUAL RETURN IS 2144 VS 1195 FOR SIMILAR MUTUAL FUNDS TRACKED BY LIPPER ANALYTICAL SERVICES THE TOP FIVE HOLDINGS IN THE MIDCAP ACCOUNT MANAGED BY MR MARSHALL ARE ORACLE SYSTEMS SENSORMATIC ELECTRONICS SOUTHWEST AIRLINES GENERAL INSTRUMENT AND ENRON OIL & GAS THE FIVE LARGEST HOLDINGS IN MS AVERY'S EMERGING GROWTH ACCOUNT ARE ARROW ELECTRONICS SYNOPSYS MESA AIRLINES SOLECTRON AND DANKA BUSINESS SYSTEMS THERE'S NO SHORTAGE OF SMALLSTOCK MANAGERS AND SOME OF THE HOTTEST HANDS ARE OLD FRIENDS OF MR NICHOLAS WHO CONGREGATE IN NEARBY LA JOLLA CALIF BUT THEY AREN'T AS BIG AND INFLUENTIAL AS NICHOLASAPPLEGATE THEIR HIGH TURNOVER RATE AND INFORMATIONDRIVEN STYLE MAKE THEM UNIQUE SAYS CHRISTOPHER SCHWARTZ SENIOR ANALYST AT THE PENSION FUND CONSULTING FIRM SEI CORP ON ALL LEVELS THEY RANK VERY HIGH SOME ANALYSTS THINK OF NICHOLASAPPLEGATE AS A HEDGE FUND OR FASTMONEY TRADING ACCOUNTS NICHOLASAPPLEGATE DOES HAVE A 194 MILLION HEDGE FUND WHICH BUYS SOME STOCKS AND SELLS OTHERS SHORT BETTING ON A DECLINE BUT MOST OF THE 81 BILLION THE FIRM MANAGES IS SPREAD OUT OVER SMALL AND MEDIUMSIZED STOCK INVESTMENTS AND CONVERTIBLE BONDS CLIENTS INCLUDE THE PENSION FUNDS OF A HOST OF BLUECHIP CORPORATIONS SUCH AS EASTMAN KODAK AND SOUTHWESTERN BELL AND WELLKNOWN PUBLIC FUNDS AND ENDOWMENTS SUCH AS THE OREGON PUBLIC EMPLOYEES' RETIREMENT SYSTEM BOSTON COLLEGE THE JEWISH COMMUNITY FEDERATION AND THE SISTERS OF THE HOLY CROSS SMALL INVESTORS NOW ALSO CAN BET WITH NICHOLASAPPLEGATE THIS MONTH THE FIRM INTRODUCED SIX MUTUAL OPENEND FUNDS THAT WILL BE MANAGED IN THE SAME STYLE AS INSTITUTIONAL ACCOUNTS THEY CAN BE BOUGHT THROUGH BROKERAGE FIRMS THE MUTUAL FUNDS HAVE A VARIED FEE STRUCTURE ONE CHOICE IS A FRONTEND LOAD CHARGE OF 525 FOR A 2000 INITIAL INVESTMENT THE FEE DECLINES TO ZERO AT A MILLIONDOLLAR INVESTMENT THE FUNDS ALSO OFFER A NOINITIALCHARGE LEVELLOAD OPTION WHERE BUYERS PAY A 1 ANNUAL FEE KNOWN AS A 12B1 PLUS A 1 FEE IF THEY WITHDRAW WITHIN 12 MONTHS SOME TRADITIONAL INVESTORS THINK MOMENTUM INVESTORS WILL LOSE THEIR EDGE AND POPULARITY THE STYLE IS COMING UNDER QUESTION SAYS RONALD SLOAN HEAD OF VERISSIMO RESEARCH A LARKSPUR CALIF INVESTMENT FIRM THIS ISN'T INVESTING IT'S A GAME IT'S TRYING TO OUTSMART THE NEXT GUY NOT IN TERMS OF KNOWLEDGE BUT IN BEING QUICKER ON THE DRAW IT'S THE WORST OF THE TIPS HUNCHES AND RUMORS SPECULATION HE SAYS AS NICHOLASAPPLEGATE GETS BIGGER INVESTMENTS HAVE TO BE DISTRIBUTED OVER MORE AND MORE STOCKS THE DANGER IS THAT THE FIRM TURNS INTO A KIND OF INDEX FUND WITH SO MANY STOCKS THAT IT CAN'T STRAY FAR FROM THE OVERALL MARKET INDEX RETURNS MR NICHOLAS BRISTLES AT THE SUGGESTION AND AT EVEN BEING CALLED A MOMENTUM INVESTOR HE EXPLAINS WHAT WE'RE REALLY LOOKING FOR IS CHANGE RELATIVE TO EXPECTATIONS YOU WANT THAT MOMENTUM IN PRICE YOU WANT THAT MOMENTUM IN EARNINGS AS A CONFIRMATION THAT THE BUSINESS REALLY IS IMPROVING AS LONG AS THE MOMENTUM PLAYERS HOLD SWAY INVESTORS IN SMALL GROWTH STOCKS WILL HAVE TO GET USE TO BREATHTAKING PRICE SWINGS MR SLOAN OF VERISSIMO RESEARCH SAYS IF YOUR STOCK IS LIQUID ENOUGH TO ACCOMMODATE MOMENTUM PLAYERS YOU'RE IN TROUBLE IF THE COMPANY MISSES EARNINGS ESTIMATES BY A PENNY HE WARNS WHEN THEY BASH A STOCK IT MAY TAKE SIX MONTHS BEFORE YOU CAN GET ANY KIND OF LEGS BACK IN IT BIG MOMENTUMPLAYER STAMPEDES CAN WORK TO AN INVESTOR'S ADVANTAGE LAST OCTOBER THE MOMENTUM CROWD BLEW OUT OF COMPUTER COMPANY ADAPTEC ERASING A THIRD OF THE STOCK'S VALUE IN FOUR DAYS MR SLOAN SCOOPED UP SOME SHARES ON THE LOWS NOW THAT MOMENTUM PLAYERS ARE GETTING BACK IN HE HAS A GAIN MR NICHOLAS SAYS HIS INVESTMENT DISCIPLINE WORKS IN SEASON AND OUT AS HIS RECORD SHOWS THERE ARE A LOT OF PEOPLE WHO ARE SMART AND TALENTED AND CAN'T MAKE MONEY HE SAYS DESCRIBING WHAT INSPIRES HIM HE SAYS IT'S BEING ABLE TO FACE THE COMPETITION AND SAY I HAVE MY TEAM TOGETHER AND I AM GOING TO BEAT YOU 9304160130 930416 FREDDIE MAC NET ROSE 43 TO HIGH IN FIRST QUARTER BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC SAID ITS PROFIT SOARED 43 IN THE FIRST QUARTER BOOSTED BY STRONG GROWTH IN ITS PORTFOLIO AND IN FEES ON MORTGAGES IT SELLS FREDDIE MAC A GOVERNMENTSPONSORED CONCERN BASED IN MCLEAN VA SAID ITS NET INCOME ROSE TO A RECORD 202 MILLION OR 106 A SHARE FROM YEAREARLIER EARNINGS OF 141 MILLION OR 78 CENTS A SHARE THE RESULTS SLIGHTLY EXCEEDED ANALYSTS' EXPECTATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FREDDIE MAC'S STOCK CLOSED AT 50625 OFF 25 CENTS THE COMPANY'S EARNINGS COME FROM TWO PRIMARY SOURCES FEES EARNED FROM BUYING MORTGAGES AND PACKAGING THEM FOR RESALE TO INVESTORS AS SECURITIES AND INTEREST COLLECTED ON THE FIRM'S OWN INVESTMENT PORTFOLIO OF MORTGAGES MANAGEMENT AND FEE INCOME ON MORTGAGE SECURITIES ROSE 20 IN THE QUARTER TO 262 MILLION FROM 218 MILLION A YEAR AGO PRIMARILY BECAUSE OF A SUBSTANTIAL INCREASE IN THE AVERAGE BALANCE OF THE SOLD PORTFOLIO FREDDIE MAC'S RETURN ON ITS RETAINED MORTGAGE PORTFOLIO INCREASED 25 TO 222 MILLION FROM 178 MILLION COMPANY OFFICIALS SAID THIS WAS DUE TO A 36 INCREASE IN THE SIZE OF THE RETAINED PORTFOLIO TO 34 BILLION FROM 25 BILLION A YEAR AGO FREDDIE MAC ALSO BENEFITED FROM A SLOWDOWN IN REFINANCINGS WHICH TEND TO CRIMP EARNINGS BECAUSE MORE HOMEOWNERS PREPAY THEIR LOANS AFTER A HOMEOWNER PREPAYS A MORTGAGE FREDDIE MAC MUST WAIT 30 DAYS BEFORE PAYING OFF THE INVESTOR IN THE SECURITY BACKED BY THE MORTGAGE DURING THIS TIME IT MUST CONTINUE TO PAY THE INVESTOR INTEREST OF ABOUT 9 WHILE EARNING SHORTTERM RETURNS OF LESS THAN 4 A LOSS ENSUES ON THE FLOAT BALANCE DURING THE FOURTH QUARTER WHEN REFINANCINGS WERE STRONGER FREDDIE MAC REPORTED A FLOAT LOSS OF ABOUT 70 MILLION THAT KEPT PROFIT ESSENTIALLY FLAT WITH 30YEAR FIXEDRATE MORTGAGE RATES PLUNGING TO ABOUT 75 IN RECENT WEEKS REFINANCING VOLUME HAS REGAINED BOOM LEVELS AND ANALYSTS SAY THAT COULD CONSTRAIN PROFIT FOR THE CURRENT QUARTER TO HELP CUSHION AGAINST FUTURE REFINANCING SWINGS FREDDIE MAC HAS FOLLOWED THE LEAD OF ITS GOVERNMENTSPONSORED COUNTERPART FEDERAL NATIONAL MORTGAGE ASSOCIATION OR FANNIE MAE IN BOOSTING PURCHASES OF LOANS FOR A RELIABLE INVESTMENT PORTFOLIO ACCORDING TO JONATHAN GRAY A SENIOR ANALYST AT SANFORD C BERNSTEIN & CO FREDDIE MAC'S PROPORTION OF TOTAL MORTGAGE VOLUME RETAINED INHOUSE ROSE TO 81 IN THE FIRST QUARTER FROM 68 A YEAR AGO 9304160129 930416 WHO'S NEWS JOHN ALDEN FINANCIAL CORP JOHN ALDEN FINANCIAL CORP MIAMI MICHAEL P ANDERSEN 37 YEARS OLD WAS NAMED VICE PRESIDENT GENERAL COUNSEL AND SECRETARY OF THIS INSURANCE HOLDING COMPANY ANNE V WARDLOW 43 WAS NAMED VICE PRESIDENT GENERAL COUNSEL AND SECRETARY OF THE COMPANY'S SUBSIDIARIES INCLUDING JOHN ALDEN LIFE INSURANCE CO MR ANDERSEN AND MS WARDLOW WERE PREVIOUSLY VICE PRESIDENTS AND ASSISTANT GENERAL COUNSELS IN THE COMPANY THEY ARE ASSUMING THE DUTIES OF DAVID A OLSON 60 SENIOR VICE PRESIDENT GENERAL COUNSEL AND SECRETARY WHO HAS RETIRED 9304160128 930416 POLITICS & POLICY WHILE SOME POOR URBAN RESIDENTS ASK IF ANYONE AT ALL WILL SERVE THEM BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ALAIN ENTHOVEN THE FATHER OF MANAGED COMPETITION WAS BRIEFING HOUSE WAYS AND MEANS STAFFERS ON THE VIRTUES OF THE COMPETITIVE NEW HEALTHCARE SYSTEM PRESIDENT CLINTON WANTS TO ADOPT JON SHEINER AN AIDE TO REP CHARLES RANGEL HAD A QUESTION WHO'S GOING TO WANT TO COMPETE FOR MR RANGEL'S CONSTITUENTS IT'S A GOOD QUESTION MR RANGEL A NEW YORK DEMOCRAT REPRESENTS SOME OF THE POOREST NEIGHBORHOODS IN NEW YORK CITY INCLUDING HARLEM IT IS A DISTRICT WITH EXTRAORDINARY HEALTH PROBLEMS CRACK BABIES DRUG ADDICTS HIVPOSITIVE INTRAVENOUS DRUG USERS HOMELESS PEOPLE STREET VIOLENCE AIDS AND TUBERCULOSIS IT IS A HEALTH INSURER'S NIGHTMARE PARTICULARLY BECAUSE MR CLINTON HAS SAID HE WANTS TO OUTLAW INSURANCE COMPANIES' PRACTICE OF ADJUSTING PREMIUMS ACCORDING TO INDIVIDUALS' MEDICAL RISK THE HEALTH PLAN THE PRESIDENT WILL UNVEIL NEXT MONTH AIMS TO GENERATE MORE COMPETITION IN THE MEDICAL MARKET BY SETTING UP HUGE NETWORKS AROUND THE COUNTRY TO BUY HEALTH COVERAGE FOR EVERYONE IN A REGION THEIR HUGE CONSUMER MUSCLE THE THEORY GOES WILL CONTROL PRICES AND IMPROVE QUALITY FOR EVERYONE BUT WILL IT THERE HAS BEEN NO COMPETITION FOR THE UNINSURED THE HOMELESS THE LOWERINCOME ETHNIC MINORITY POPULATIONS AND THE MENTALLY ILL ACCORDING TO RICHARD BUTCHER PRESIDENT OF THE NATIONAL MEDICAL ASSOCIATION THE NATION'S OLDEST GROUP OF AFRICANAMERICAN PHYSICIANS IT IS UNREASONABLE TO EXPECT A MIDDLECLASS DELIVERY SYSTEM TO EMBRACE THESE POPULATIONS HE TOLD THE CLINTON ADMINISTRATION'S HEALTHREFORM TASK FORCE LAST MONTH IN HARLEM THERE ARE FEWER THAN 50 PRACTICING PHYSICIANS SERVING A NEIGHBORHOOD WITH A POPULATION OF 300000 ACCORDING TO EUGENE MCCABE PRESIDENT OF NORTH STAR GENERAL HOSPITAL THERE IT COULD BE AS LITTLE AS 25 HE SAYS NATIONALLY THERE ARE MORE THAN 200 DOCTORS FOR EVERY 100000 PEOPLE MOST HARLEM RESIDENTS GET CARE FROM HOSPITAL EMERGENCY ROOMS LIKE NORTH GENERAL'S WHERE HALF OF THE EMERGENCY ROOM PATIENTS HAVE NO HEALTH INSURANCE AT FIRST GLANCE IT LOOKS AS IF THE PEOPLE OF THE INNER CITIES WHO ARE OFTEN POOR AND EITHER UNINSURED OR ON THE FEDERALSTATE MEDICAID PROGRAM WILL BENEFIT MORE THAN ANYONE FROM THE CLINTON HEALTH SYSTEM AFTER ALL THE PRESIDENT WANTS TO GUARANTEE HEALTH COVERAGE FOR EVERYONE BY FORCING ALL EMPLOYERS TO CONTRIBUTE A SUBSTANTIAL PORTION OF THE COST OF HEALTH COVERAGE FOR THEIR WORKERS AND BY HAVING THE GOVERNMENT SUBSIDIZE THE PURCHASE OF PRIVATE COVERAGE FOR THE LOWINCOME UNEMPLOYED BUT THE END RESULT SOME PEOPLE WORRY COULD BE A TWOTIER SYSTEM WHERE PEOPLE IN THE INNER CITIES CAN JOIN THE SAME NETWORKS OF DOCTORS AND HOSPITALS THAT THE WELLOFF PEOPLE USE BUT DON'T HAVE REAL ACCESS TO THEM HOW IS A SINGLE MOTHER WITH AN ALLDAY JOB IN MR RANGEL'S DISTRICT FOR EXAMPLE GOING TO GET TO SEE A SPECIALIST ON MADISON AVENUE THE ADMINISTRATION'S HEALTH TASK FORCE AND ITS STAFF HAVE SPENT MANY HOURS ON SUCH ISSUES AND HILLARY RODHAM CLINTON THE TASK FORCE CHAIRWOMAN HAS BEEN PEPPERED WITH QUESTIONS ABOUT THEM IN MEETINGS WITH THE CONGRESSIONAL BLACK CAUCUS AND OTHER GROUPS POLITICALLY THE OUTLOOK FOR THE INNER CITIES COULD BE CRITICAL TO THE CLINTON PLAN'S SUCCESS ON CAPITOL HILL THE CHAIRMEN OF KEY CONGRESSIONAL PANELS COME FROM URBAN STATES OR DISTRICTS DANIEL PATRICK MOYNIHAN CHAIRMAN OF THE SENATE FINANCE COMMITTEE IS FROM NEW YORK DAN ROSTENKOWSKI CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE REPRESENTS A CHICAGO DISTRICT EDWARD KENNEDY CHAIRMAN OF THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE REPRESENTS MASSACHUSETTS YOU WANT TO MAKE CERTAIN THAT THE SERVICES ON K STREET ARE AVAILABLE TO THE PEOPLE IN ANACOSTIA SAYS JUDITH FEDER COCHAIR OF THE WORKING GROUPS ADVISING THE TASK FORCE REFERRING TO THE POSH DOWNTOWN WASHINGTON BUSINESS CORRIDOR AND THE BLIGHTED SOUTHEAST CORNER OF THE CITY TO THAT END THE TASK FORCE IS CONSIDERING A NUMBER OF MEASURES TO PREVENT A KIND OF HEALTHINSURANCE REDLINING MOST IMPORTANTLY IT WILL PROBABLY REQUIRE THAT ANY HEALTH PLAN COMPETING FOR A REGIONAL HEALTH ALLIANCE'S BUSINESS WILL HAVE TO BE PREPARED TO SERVE ALL RESIDENTS OF THE REGION THAT MEANS FOR EXAMPLE A HEALTHMAINTENANCE ORGANIZATION ON MADISON AVENUE WOULD HAVE TO HAVE FACILITIES IN HARLEM MOST LIKELY ACCORDING TO THE SYSTEM MS FEDER DESCRIBES IT WOULD MEAN THAT THE MADISON AVENUE HMO WOULD CONTRACT FOR SERVICES OR HAVE A REFERRAL ARRANGEMENT WITH ESTABLISHED COMMUNITY HEALTH CENTERS PUBLIC HEALTH CLINICS AND HOSPITALS IN HARLEM ANY HEALTH PLAN WOULD BE REQUIRED TO HAVE THAT ARRANGEMENT SHE SAYS FOR THE MOST PART ADVOCATES FOR THE POOR APPLAUD SUCH MEASURES BUT THEY SAY IT IS ALSO IMPORTANT TO DEVELOP SYSTEMS SENSITIVE TO AND GEARED TO THE SPECIAL NEEDS OF POOR URBAN COMMUNITIES WE JUST DON'T HAVE A SYSTEM IN PLACE THAT IS CULTURALLY COMPETENT AND SENSITIVE THAT IS LOCATED IN OUR NEIGHBORHOODS THAT IS USERFRIENDLY SAYS TOM VAN COVERDEN EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION OF COMMUNITY HEALTH CENTERS WHICH HAS ABOUT 600 FEDERALLY FUNDED HEALTH ORGANIZATIONS WITH SOME 1400 DELIVERY SITES IN URBAN AND RURAL AREAS NATIONWIDE FOR EXAMPLE HE SAYS IT'S IMPORTANT TO HAVE A FACILITY WITH COMPREHENSIVE SERVICES UNDER ONE ROOF SO POOR PEOPLE AREN'T RUNNING ALL AROUND TOWN FOR TESTS AND SERVICES AND WITH EXTENDED HOURS TO SERVE WORKING PEOPLE UNABLE TO TAKE OFF TIME FROM JOBS ADMINISTRATION OFFICIALS SAY THEY WANT TO BUILD ON THE HEALTH CARE SYSTEMS ALREADY IN PLACE IN THE INNER CITIES BY PUMPING MORE MONEY INTO THE COMMUNITY HEALTH CENTER SYSTEM OF FEDERALLY FUNDED CLINICS FOR INNERCITY AND RURAL COMMUNITIES AND BY STRENGTHENING THE NATIONAL HEALTH SERVICE CORPS WHICH HELPS FINANCE MEDICAL STUDENTS' EDUCATION IN RETURN FOR A PLEDGE TO SERVE IN RURAL OR INNER CITY AREAS FOR A CERTAIN NUMBER OF YEARS NORTH STAR GENERAL'S MR MCCABE WANTS TO SET UP A PROVIDER NETWORK LINKING HIS HOSPITAL TO DOCTORS AND COMMUNITY HEALTH CENTERS IN THE AREA GEARED SPECIFICALLY TOWARD BRINGING MORE PRIMARY AND PREVENTIVE CARE TO THE RESIDENTS OF HARLEM BUT ADMINISTRATION OFFICIALS SAY THEY HAVEN'T DECIDED WHETHER TO ALLOW A PLAN GEARED SOLELY TO AN INNERCITY POPULATION FEARING THAT COULD FOSTER A KIND OF SEGREGATED MEDICINE MR MCCABE SAYS WE DON'T WANT TO CONTINUE A SITUATION THAT SOME PEOPLE HAVE DESCRIBED AS TWOTIERED MEDICINE ON THE OTHER HAND I THINK THE POPULATION WE'RE DESCRIBING HAS SPECIAL KINDS OF NEEDS THAT HAVE TO BE RECOGNIZED FROM EXPERIENCE AND COMMITMENT TO THE AREA INITIALLY YOU COULD HAVE THE SAME STANDARDS FOR EVERYONE BUT THE EMPHASIS FOR GETTING PEOPLE TO ACCESS THE SYSTEM HAS TO BE LOCALLY FOCUSED SEE RELATED ARTICLE POLITICS & POLICY HEALTHCARE PROPOSALS BASED ON COMPETITION ARE VIEWED WITH SKEPTICISM IN RURAL AREAS WSJ APRIL 16 1993 9304160127 930416 PEPPERAND SALT IS FLAVOR PASS AS NORMAL THE CONSTITUTION GUARANTEES FREE SPEECH IT DOESN'T GUARANTEE LISTENERS 9304160126 930416 WHO'S NEWS YALE UNIVERSITY PICKS RICHARD LEVIN TO BE ITS PRESIDENT CHOICE OF GRADUATE SCHOOL DEAN ENDS A 10MONTH SEARCH CHIEF TRUSTEE URGED TO QUIT BY WILLIAM M BULKELEY AND THOMAS M BURTON STAFF REPORTERS OF THE WALL STREET JOURNAL YALE UNIVERSITY NAMED RICHARD C LEVIN THE 46YEAROLD DEAN OF ITS GRADUATE SCHOOL AS ITS 22ND PRESIDENT ENDING A 10MONTH SEARCH MR LEVIN AN ECONOMIST WHO HAS STUDIED TRANSPORTATION MARKETS AND TECHNOLOGICAL CHANGE RECEIVED HIS DOCTORATE AT YALE IN 1974 AND HIS UNDERGRADUATE DEGREE FROM STANFORD UNIVERSITY HE HAS TAUGHT AT YALE SINCE HE GOT HIS DOCTORATE AND HEADED THE SCHOOL'S ECONOMICS DEPARTMENT FOR FIVE YEARS MR LEVIN SUCCEEDS ACTING PRESIDENT HOWARD LAMAR A HISTORY PROFESSOR FORMER PRESIDENT BENNO C SCHMIDT RESIGNED LAST MAY TO BECOME HEAD OF THE EDISON PROJECT A PLANNED NATIONAL CHAIN OF FORPROFIT PRIVATE SCHOOLS BEING DEVELOPED BY CONTROVERSIAL MEDIA ENTREPRENEUR CHRISTOPHER WHITTLE YALE'S SEARCH PROCESS HAS BEEN WIDELY CRITICIZED FOR ITS LENGTH ESPECIALLY AS OTHER LARGE UNIVERSITIES SUCH AS STANFORD HIRED PRESIDENTS IN THE INTERIM THE YALE DAILY NEWS THE SCHOOL'S STUDENT NEWSPAPER WHICH BROKE THE NEWS YESTERDAY MORNING SAID IN AN EDITORIAL THE UNIVERSITY CAN BREATHE A HUGE SIGH OF RELIEF IT'S FINALLY OVER MR LEVIN FACES NUMEROUS CHALLENGES IN ELIMINATING DEFICITS AND REPAIRING THE AGING BUILDINGS AT YALE'S NEW HAVEN CONN CAMPUS YALE RECENTLY BECAME ONE OF THE FIRST UNIVERSITIES TO BREAK THE 100000 BARRIER FOR A FOURYEAR EDUCATION BY RAISING THE PRICE OF ROOM BOARD AND TUITION TO 25110 FOR THE 199394 SCHOOL YEAR SEPARATELY THE YALE STUDENT GOVERNING BODY CALLED FOR THE RESIGNATION OF VERNON R LOUCKS JR AS THE SENIOR FELLOW OF THE YALE CORP OR CHAIRMAN OF THE UNIVERSITY BOARD OF TRUSTEES MR LOUCKS WHO IS CHAIRMAN OF BAXTER INTERNATIONAL INC DEERFIELD ILL MADE THE OPENING REMARKS AT YESTERDAY'S ANNOUNCEMENT THE YALE COLLEGE COUNCIL URGED THE RESIGNATION BECAUSE OF BAXTER'S GUILTY PLEA LAST MONTH TO A FEDERAL FELONY CHARGE BAXTER THE WORLD'S LARGEST HOSPITAL SUPPLIER PLEADED GUILTY TO THE CRIMINAL CHARGE OF COOPERATING WITH THE ARAB ECONOMIC BOYCOTT OF ISRAEL FOLLOWING ITS SUCCESSFUL MULTIYEAR CAMPAIGN TO BE DROPPED FROM THE ARAB BOYCOTT LIST THERE IS A GENERAL CONCERN ON CAMPUS OVER HOW THIS LOOKS SAID ANDY MCSTAY A COUNCIL MEMBER DRAFTING A LETTER TO MR LOUCKS ASKING HIM TO RESIGN TWO WEEKS AGO THE YALE DAILY NEWS PUBLISHED AN EDITORIAL CONTENDING THAT MR LOUCKS'S ROLE ON THE YALE BOARD AND AS CHAIRMAN OF THE UNIVERSITY'S FUNDRAISING DRIVE CAN ONLY HURT YALE AND SEND THE MESSAGE THAT THE UNIVERSITY TOLERATES DISREGARD FOR THE LAW MR LOUCKS SAID THROUGH A BAXTER SPOKESMAN THAT HE HAS NO INTENTION OF RESIGNING HIS YALE POST 9304160125 930416 TRACKING TRAVEL BY LOURDES LEE VALERIANO HOTELIERS LOOKING TO MEXICO SEE A LOT OF ROOM FOR GROWTH MEXICO'S BUSTLING ECONOMY AND THE OPENING IN RECENT YEARS OF FREEWAYS LINKING SMALLER CITIES HAVE SWELLED BUSINESS TRAVEL BOOSTING DEMAND FOR AFFORDABLE HOTELS THE NEED IS ESPECIALLY GREAT OUTSIDE RESORT AREAS AND THE METROPOLISES OF MEXICO CITY MONTERREY AND GUADALAJARA ELSEWHERE YOU'RE DOWN TO MOMANDPOP HOTELS SAYS CLAY DICKINSON REGIONAL VICE PRESIDENT OF HOLIDAY INN WORLDWIDE IN TERMS OF LIMITEDSERVICE HOTELS MEXICO IS VIRGIN TERRITORY ADDS STEVEN SCHULTZ SENIOR VICE PRESIDENT OF LA QUINTA MOTOR INNS A BUDGET LODGING CHAIN BASED IN SAN ANTONIO A LA QUINTA FRANCHISEE WILL OPEN A HOTEL NEXT MONTH IN SALTILLO 30 MILES OUTSIDE MONTERREY LA QUINTA WHICH PLANS TO FOCUS INITIALLY ON THE AREA NEAR THE US BORDER IS STUDYING THE FEASIBILITY OF BUILDING 50 HOTELS IN MEXICO OVER THE NEXT FIVE YEARS HOLIDAY INN A UNIT OF BASS PLC AGREED THIS WEEK TO FORM A JOINT VENTURE WITH MEXICAN DEVELOPER GRUPO SITUR TO BUILD 10 LIMITEDSERVICE HOTELS CALLED HOLIDAY INN EXPRESS OVER THE NEXT TWO YEARS HOLIDAY INN PLANS TO PUT ITS FIRST MEXICAN EXPRESS HOTELS INCLUDING THOSE IN THE JOINT VENTURE IN SMALLER CITIES WITH GOOD ROAD LINKS TO MEXICO CITY SUCH AS PUEBLA LEON AND VERACRUZ LIKE ITS EXPRESS HOTELS IN THE US THESE HOTELS WOULD HAVE JUST OVER 100 ROOMS AND GENERALLY WOULDN'T OFFER FULLSERVICE RESTAURANTS OR LARGE MEETING FACILITIES THE COMPANY ALSO IS TALKING WITH PROSPECTIVE FRANCHISEES WE SEE AS MANY AS 75 EXPRESS HOTELS IN 10 YEARS SAYS MR DICKINSON ADVENTURETRAVEL ORGANIZERS WRESTLE OVER HOW FAR THEY SHOULD GO TO MAKE THEIR TRIPS ACCESSIBLE TO THE DISABLED AS SERVICE PROVIDERS COMPANIES THAT PACKAGE OUTDOOR TRIPS THAT FEATURE HIKING CANOEING AND HORSEBACK TRAIL RIDING MUST COMPLY WITH THE AMERICANS WITH DISABILITIES ACT BUT THERE ARE FEW SPECIFIC PROVISIONS FOR THE INDUSTRY OUTFITTERS ARE SCARED TO DEATH ABOUT BEING SUED SAYS GREG LAIS EXECUTIVE DIRECTOR OF WILDERNESS INQUIRY A NONPROFIT TRAVEL GROUP IN MINNEAPOLIS AMERICA OUTDOORS A KNOXVILLE TENN TRADE GROUP IS WORKING WITH THE US FOREST SERVICE ON A GUIDEBOOK FOR OUTFITTERS THE BOOK WILL OFFER ADVICE ON APPROACHING THE ISSUE INCLUDING LISTS OF DISABILITIES AND WHAT ACTIVITIES THEY MIGHT AFFECT BUT IT WON'T SET A STANDARD BECAUSE WE DON'T KNOW WHAT THE STANDARD IS SAYS SCOOTCH PANKONIN THE ASSOCIATION'S WASHINGTON REPRESENTATIVE GIVEN THE UNCERTAINTY MR LAIS SAYS IT'S IMPORTANT FOR TRAVEL COMPANIES TO MAKE A GOODFAITH EFFORT TO COMPLY WITH THE LAW HE RECOMMENDS THAT A COMPANY LIST THE ESSENTIAL FUNCTIONS A PERSON MUST BE CAPABLE OF TO SAFELY MAKE A TRIP AND APPLY THEM TO ALL TRAVELERS A CANOE OUTFITTER FOR INSTANCE COULD REQUIRE THAT ALL PASSENGERS CAN GET IN A CANOE WITHOUT HELP PADDLE AND RIGHT THEMSELVES SHOULD THEY FALL IN THE WATER SMITHSONIAN STUDY TOURS AND SEMINARS ORGANIZING ITS FIRST ACCESSIBLE ADVENTURES TRIPS HAS ADOPTED THOSE SUGGESTIONS FOR ITS CANOEING AND KAYAKING TRIPS SUCH CRITERIA MAY BE ACCEPTABLE SAYS MICHAEL AUBERGER A COFOUNDER AND NATIONAL ORGANIZER OF AMERICAN DISABLED FOR ATTENDANT PROGRAMS TODAY AN ADVOCACY GROUP BASED IN DENVER BUT HE WARNS THAT OUTFITTERS MUST TAKE CARE TO APPLY THE STANDARDS IN A WAY THAT WOULDN'T BE SEEN AS DISCRIMINATORY SUCH AS REQUIRING ALL TRAVELERS TO TAKE A SKILLS TEST SOME TOUR OPERATORS HAVE LOOKED FOR GUIDANCE TO GROUPS THAT PROVIDE SERVICES TO THE DISABLED FOR ITS HORSEBACK TRIPS J&J GUIDES & OUTFITTERS IN CRAIG COLO USES POLICIES DEVELOPED BY NORTH AMERICAN RIDING FOR THE HANDICAPPED A DENVER GROUP FOR INSTANCE THE COMPANY PROVIDES RAMPS FOR WHEELCHAIR USERS TO ROLL UP TO A HORSE BUT CHARGES EXTRA IF THE PERSON NEEDS OTHER MOUNTING ASSISTANCE AMERICAN TRAVEL OPERATORS HAVE SCRAMBLED TO ARRANGE TOURS OF VIETNAM BUT BOOKINGS SO FAR ARE FEW US TRAVEL COMPANIES WERE BARRED FOR YEARS FROM PROMOTING TRIPS TO VIETNAM UNDER THE US TRADE EMBARGO WHEN WASHINGTON DROPPED THAT RESTRICTION IN DECEMBER 1991 SEVERAL US OPERATORS MOVED IN OFFERINGS RANGE FROM CULTURAL TOURS OF HANOI HO CHI MINH CITY AND HUE TO OVERLAND TREKS AND SCUBADIVING EXPEDITIONS BUT AS THE FIRST FULL SEASON WRAPS UP MANY FIRMS CONCEDE THEY OVERESTIMATED DEMAND WE'VE HAD ABOUT 100 PASSENGERS SINCE SEPTEMBER SAYS ROBIN HARVEY OF TBI TOURS NEW YORK WHICH HAD EXPECTED 500 TO 800 TRAVELERS BY NOW WE THOUGHT THERE WAS PENTUP DEMAND COUNTING ON THE ADVENTURE TRAVELER IPI/INTERPACIFIC TOURS INTERNATIONAL ALSO IN NEW YORK SCHEDULED 25 15PERSON TRIPS LAST YEAR BUT ENDED UP DOING ONLY SIX THIS YEAR ITS GOAL IS ABOUT 15 DEPARTURES TOUR COMPANIES SPECULATE THAT SOME INTERESTED TRAVELERS ARE DETERRED BY THE LACK OF DIPLOMATIC RELATIONS BETWEEN THE US AND VIETNAM STILL MANY SAY THAT AMERICAN INTEREST IN TRAVEL TO VIETNAM IS HIGH AND THAT THE COUNTRY WILL BECOME AN IMPORTANT ASIAN TOURISM DESTINATION HOLI ASIA IN SAN FRANCISCO SAYS 75 OF THE INQUIRIES WE GET FROM NEWSPAPER ADS ON ASIA ARE ABOUT VIETNAM AND CAMBODIA AND SOME COMPANIES REPORT BRISK BUSINESS ARRANGING TRIPS FOR INDIVIDUAL TRAVELERS SLOWPOKES STATE TOURISM BUREAUS SLACK OFF IN RESPONDING TO INFORMATION REQUESTS SAYS HIDEAWAY REPORT A NEWSLETTER IN SUN VALLEY IDAHO THIS YEAR ONLY 25 STATES GOT PACKETS TO CALLERS WITHIN THREE WEEKS OF THEIR TELEPHONE REQUESTS DOWN FROM 37 STATES IN 1991 SEVEN STATES TOOK MORE THAN TWO MONTHS UP FROM TWO STATES IN 1991 DON'T BRING UP BRAZIL WHEN DOING BUSINESS IN ARGENTINA SAYS DEAN FOSTER OF BERLITZ'S CROSSCULTURAL CONSULTING ASSOCIATES ARGENTINIANS HE SAYS ARE SENSITIVE THAT AMERICANS TEND TO CONFUSE THEIR COUNTRY WITH BRAZIL 9304160124 930416 OTC FOCUS INDEX FALLS 054 AMID PROFIT WORRIES BANKS TECHNOLOGIES TRANSPORTS ARE OFF BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NAIL BITING OVER EARNINGS RELEASES CONTINUED TO PLAGUE THE OVERTHECOUNTER MARKET YESTERDAY FORCING PRICES LOWER IN RELATIVELY ACTIVE TRADING THE NASDAQ COMPOSITE INDEX SLIPPED 362 POINTS OR 054 TO 67032 DECLINERS OUTPACED ADVANCING STOCKS 1430 TO 1270 TRADING WAS MILD FOR MUCH OF THE DAY BUT GAINED MOMENTUM NEAR THE CLOSE NASDAQ NATIONAL MARKET SYSTEM SHARE VOLUME TOTALED 206910000 COMPARED WITH 204070000 WEDNESDAY DESPITE SOME POSITIVE EARNINGS REPORTS TRADERS SAID INVESTORS ARE STILL JUMPY SELLING IN THE BANK TECHNOLOGY AND TRANSPORTATION SECTORS KEPT MAJOR INDEXES LOWER THERE SEEM TO BE BLACK HOLES OUT THERE AND EVERY DAY WE WALK INTO THEM SAID CHARLES HOWLEY MANAGING DIRECTOR OF OTC TRADING AT SOUNDVIEW FINANCIAL CORP HE SAID THAT EARNINGS ANNOUNCEMENTS HAVE DONE ONE OF TWO THINGS EITHER THEY DON'T AFFECT THE STOCK OR THEY AFFECT IT NEGATIVELY MR HOWLEY ADDED THAT THIS IS A FUNCTION OF THE MAKEUP OF THE NASDAQ MARKET WHICH IS WEIGHTED HEAVILY WITH GROWTH STOCKS PEOPLE ARE VERY NERVOUS AND IF THEY DON'T GET A MAJOR EARNINGS UPSIDE SURPRISE THEY START SELLING THE LARGER MARKET FINISHED MIXED AND THE DOW JONES INDUSTRIAL AVERAGE ROSE JUST 028 POINT OR 001 TO END AT 345592 AFTER HAVING FALLEN AS MUCH AS 18 POINTS INTRADAY THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DROPPED 034 POINT OR 014 AND FINISHED AT 24739 THOUGH TRADERS SAID BIG BOARD ISSUES MAY HAVE MOVED HIGHER NEAR THE SESSION'S END BECAUSE OF POSITIONING AHEAD OF TODAY'S DOUBLE WITCHING THEY ADDED THAT THE MONTHLY OPTIONS EXPIRATIONS MAY HAVE HINDERED OTC GAINS INVESTORS DON'T LIKE ANY OF THE EXPIRATIONS AND THEY MAY HAVE LIQUIDATED THEIR POSITIONS BECAUSE OF THAT SAID SOUNDVIEW'S MR HOWLEY OPTIONS ON INDIVIDUAL STOCKS AND SOME STOCK INDEXES WILL EXPIRE TODAY MR HOWLEY SAID MARKET PLAYERS ALSO STILL FEAR ANOTHER MAJOR SHAKEUP SUCH AS THOSE THAT SENT PHILIP MORRIS US SURGICAL AND WALMART SHARPLY LOWER IN THE PAST COUPLE OF WEEKS A LOT OF BIG STOCKS HAVE GOTTEN CLOCKED RECENTLY HE SAID COMBINED WITH AN ECONOMIC RECOVERY THAT SEEMS SOMEWHAT TEPID THIS AFFECTS INVESTORS' MENTALITY AND THE MARKET ACTS POORLY BUT WILLIAM SULYA HEAD OF OTC TRADING AT AG EDWARDS SAID HE'S BULLISH ON THE NASDAQ MARKET I THINK THE MARKET'S STILL IN GOOD SHAPE BUT IS CORRECTING ITSELF A BIT MR SULYA CITES THE BANK SECTOR WHICH FOUND ITSELF LOWER YESTERDAY AFTER RALLYING FOR WEEKS HE SAID MANY BANK ISSUES MOVED UP ON ANTICIPATED GOOD EARNINGS AND SOLD ON THE GOOD EARNINGS REPORTS SEVERAL BANK STOCKS REPORTED POSITIVE RESULTS YESTERDAY THE OTC MARKET DEFIED THE BOND MARKET WHICH BOUNCED AROUND THE TREASURY'S BELLWETHER 30YEAR BOND FINISHED MORE THAN 3/8 POINT HIGHER DEPRESSING ITS YIELD TO 671 A 16YEAR LOW BONDS IN TURN IGNORED LABOR DEPARTMENT DATA RELEASED YESTERDAY MORNING SHOWING INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 38000 IN THE LATEST WEEK ECONOMISTS HAD EXPECTED THE CLAIMS TO HAVE DROPPED ONLY 9000 BANK ISSUES WERE BADLY HURT AND THE NASDAQ FINANCIAL INDEX A BAROMETER OF THE LARGEST FINANCIAL CONCERNS DROPPED ABOUT 35 POINTS STATE STREET BOSTON CONTINUED TO GET PUMMELED AFTER ITS 7 5/8POINT SLIDE WEDNESDAY FOLLOWING NEWS THAT MERRILL LYNCH DOWNGRADED THE COMPANY'S SHARES AND LOWERED EARNINGS ESTIMATES YESTERDAY THE BOSTONBASED BANK HOLDING COMPANY LOST 1 1/2 TO 33 5/8 IN HEAVY TRADING SOME BANK ISSUES FELL DESPITE IMPROVED EARNINGS REPORTS BOATMEN'S BANCSHARES FOR EXAMPLE WAS DOWN 1 1/8 TO 63 1/8 THE ST LOUIS HOLDING CONCERN REPORTED FIRSTQUARTER EARNINGS OF 145 A SHARE COMPARED WITH 116 A SHARE A YEAR AGO DENVERBASED COLORADO NATIONAL BANKSHARES SHED 1 3/4 TO 55 AFTER REPORTING RECORD FIRSTQUARTER NET INCOME OF 111 A SHARE UP FROM OPERATING EARNINGS OF 37 CENTS A SHARE A YEAR EARLIER SEVERAL COMPANIES ADVANCED ON POSITIVE EARNINGS NEWS HOWEVER FIRST AMERICAN CORP OF NASHVILLE TENN GAINED 1 1/4 TO 33 1/8 AFTER ANNOUNCING THAT IT EARNED 67 CENTS A SHARE FOR THE FIRST QUARTER UP FROM 36 CENTS A SHARE A YEAR AGO ADDITIONALLY IT RAISED ITS QUARTERLY DIVIDEND TO 15 CENTS FROM 10 CENTS FIRST COMMERCE CORP BASED IN NEW ORLEANS ROSE 1 7/8 TO 40 THE MULTIBANK HOLDING COMPANY POSTED FIRSTQUARTER NET INCOME OF 107 A SHARE COMPARED WITH 83 CENTS A YEAR EARLIER TECHNOLOGY ISSUES LED BY MICROSOFT WERE ALSO WEAKER THE REDMOND WASH SOFTWARE CONCERN FELL AFTER BEAR STEARNS DOWNGRADED THE STOCK TO HOLD FROM BUY CITING ITS BELIEF THAT THE COMPANY'S PROFIT MARGINS WILL DECLINE IN FISCAL 1994 BEAR STEARNS AND DONALDSON LUFKIN & JENRETTE LOWERED FISCAL 1994 EARNINGS ESTIMATES MICROSOFT REPORTED A 36 JUMP IN FISCAL THIRDQUARTER EARNINGS WEDNESDAY MICROSOFT FINISHED DOWN 1 7/8 AT 87 1/8 ON HEAVY VOLUME DELL COMPUTER ANNOUNCED IT WILL OFFER MSDOS 6 PLUS ENHANCED TOOLS THE RECENT RELEASE OF MICROSOFT'S MSDOS OPERATING SYSTEM AUSTIN TEXASBASED DELL EDGED UP 1/2 TO 32 1/2 ALSO LOWER WERE INTEL WHICH WAS OFF 1 1/8 AT 111 5/8 IN ACTIVE TRADING ALDUS WHICH FELL 1/2 TO 17 1/2 APPLIED MATERIALS WHICH SLUMPED 1 3/8 TO 39 1/8 LEGENT CORP DOWN 1 7/8 TO 29 1/4 AND ACTIVELY TRADED 3COM OFF 1 7/8 TO 31 3/8 MCI COMMUNICATIONS HELPED PULL THE NASDAQ UTILITY INDEX ABOUT A POINT HIGHER THE WASHINGTON LONGDISTANCE TELEPHONE PROVIDER ROSE 3/4 TO 47 1/2 COMPTEK RESEARCH'S 31OWNED BISON DATA JOINT VENTURE SIGNED A PRELIMINARY AFFILIATE AGREEMENT TO JOINTLY DEVELOP SPECIAL SERVICE PACKAGES FOR MCI ON THE AMERICAN STOCK EXCHANGE COMPTEK INCREASED 1/8 TO 15 THE MOST ACTIVELY TRADED ISSUE TELECOMMUNICATIONS WAS UNCHANGED AT 18 3/4 THE TRANSPORTATION SECTOR WAS ALSO SLUGGISH AND ROADWAY SERVICES FELL 1 TO 60 1/2 ON AN ALEX BROWN DOWNGRADE TO NEUTRAL FROM BUY THE BROKERAGE FIRM CUT ITS 1993 AND 1994 EARNINGS PROJECTIONS OTHER LOSERS FOR THE DAY INCLUDED ARNOLD INDUSTRIES WHICH DECLINED 1 1/2 TO 29 1/2 AND HEARTLAND EXPRESS WHICH DROPPED 1 1/4 TO 36 1/4 9304160123 930416 BUSINESS BRIEF HASBRO INC QUARTERLY PROFIT SET HIGH ON 8 INCREASE IN REVENUE HASBRO INC REPORTED RECORD FIRSTQUARTER NET INCOME OF 266 MILLION OR 30 CENTS A SHARE UP 14 FROM A YEAR AGO THE PAWTUCKET RI TOY MAKER CREDITED AN 8 REVENUE INCREASE TO 487 MILLION ANALYSTS SAID THE RESULTS EXCEEDED THEIR FORECASTS AND SOME RAISED ESTIMATES FOR THE YEAR IN THE YEARAGO QUARTER HASBRO EARNED 234 MILLION OR 26 CENTS A SHARE ON REVENUE OF 4526 MILLION 9304160122 930416 INTERNATIONAL BRIEF LAURA ASHLEY HOLDINGS PLC FIRM POSTS PRETAX EARNINGS FIRST PROFIT IN FOUR YEARS BRITISH RETAILER LAURA ASHLEY HOLDINGS PLC POSTED A PRETAX PROFIT OF 18 MILLION 28 MILLION FOR THE FISCAL YEAR ENDED JAN 30 RETURNING TO THE BLACK FOR THE FIRST TIME IN FOUR YEARS IN THE PRIOR YEAR THE COMPANY SHOWED A LOSS OF 91 MILLION THE COMPANY SAID MARGINS IMPROVED AND SALES EDGED UP 08 TO 2628 MILLION FROM 2607 MILLION LOOKING AHEAD LAURA ASHLEY SAID THERE ARE FURTHER GROUNDS FOR BELIEVING THAT THE CORNER HAS BEEN TURNED BUT WARNED OF UNCERTAINTY AS TO THE PRECISE TIMING OF A RETURN TO SUSTAINED PROFITABILITY IN THE NORTH AMERICAN RETAIL BUSINESS 9304160121 930416 COURT REFUSES TO LOWER PUNITIVE AWARD OF 101 MILLION IN GM TRUCK FIRE CASE BY MILO GEYELIN AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL A STATE COURT JUDGE IN ATLANTA REFUSED TO REDUCE THE 101 MILLION PUNITIVE DAMAGE AWARD AGAINST GENERAL MOTORS CORP STEMMING FROM THE DEATH OF A 17YEAROLD BOY WHOSE PICKUP TRUCK BURST INTO FLAMES AFTER A CRASH IN 1989 THE JUDGE ALSO REFUSED TO GRANT GM A NEW TRIAL IN THE CASE WHICH ALSO RESULTED IN 42 MILLION IN COMPENSATORY DAMAGES THE JURY AWARD WAS MADE EARLIER THIS YEAR TO THOMAS AND ELAINE MOSELEY THE BOY'S PARENTS THEY ALLEGED THAT THEIR SON SHANNON BURNED TO DEATH BECAUSE THE TRUCK'S FUEL TANKS WERE MOUNTED OUTSIDE ITS FRAME RAILS THUS MAKING IT VULNERABLE TO RUPTURE IN A BROADSIDE COLLISION IN A STATEMENT GM SAID IT WAS DISAPPOINTED WITH THE JUDGE'S DECISION AND THAT THE PUNITIVE DAMAGE AWARD WAS INAPPROPRIATE IN REQUESTING A NEW TRIAL GM MAINTAINED THAT TWO NEW EYEWITNESSES HAVE COME FORWARD SINCE THE VERDICT AND TESTIFIED THAT MR MOSELEY WASN'T CONSCIOUS OR ALIVE DURING THE FIRE FULTON COUNTY GA STATE COURT JUDGE ALBERT L THOMPSON WHO PRESIDED OVER THE TRIAL GAVE NO EXPLANATION FOR HIS RULING HOWEVER ROBERT D CHEELEY AN ATTORNEY REPRESENTING THE MOSELEYS PRAISED IT SAYING THE JUDGE WAS ABSOLUTELY RIGHT IN DENYING THE MOTION BECAUSE FROM AN EVIDENCE STANDPOINT THIS WAS A CLEAN TRIAL HOWEVER LEGAL OBSERVERS SAID GM STILL HAS A GOOD CHANCE OF REDUCING THE VERDICT ON APPEAL THOMAS KOENIG AN ASSOCIATE PROFESSOR AT NORTHEASTERN UNIVERSITY IN BOSTON COAUTHORED A STUDY EXAMINING PUNITIVE DAMAGE VERDICTS IN PRODUCTLIABLITY CASES FROM 1965 TO 1985 OF THE 173 CASES STUDIED IN DEPTH TRIAL JUDGES REDUCED THE VERDICTS IN NINE CASES BUT THE VERDICTS WERE REDUCED ON APPEAL 85 TIMES PAUL CAPPUCCIO A WASHINGTON LAWYER REPRESENTING GM SAID THE AWARD IN THE MOSELEY CASE WAS DISPROPORTIONATE TO GM'S ALLEGED MISCONDUCT AND TO PUNITIVE DAMAGES AWARDED IN COMPARABLE CASES HE POINTED TO THE FORD PINTO CASE IN THE 1970S WHEN A TRIAL JUDGE KNOCKED A 125 MILLION PUNITIVE AWARD DOWN TO 35 MILLION JUDGE THOMPSON'S RULING CAME LESS THAN A WEEK AFTER THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ASKED GM TO RECALL 47 MILLION GM PICKUP TRUCKS WITH SIDEMOUNTED FUEL TANKS BUILT FROM 1973 TO 1987 GM HAS ALREADY SAID THE RECALL WAS UNWARRANTED ALTHOUGH IT HAS UNTIL THE END OF THIS MONTH TO ISSUE ITS FORMAL RESPONSE SUCH A RECALL WOULD COST GM BETWEEN 200 MILLION AND 1 BILLION WHAT'S MORE NHTSA'S ACTION ALONG WITH THE MOSELEY TRIAL COULD GIVE NEW IMPETUS TO DOZENS OF OTHER PRODUCTLIABILITY LAWSUITS ALLEGING THAT GM'S PICKUP TRUCK IS UNSAFE BECAUSE OF ITS SIDEMOUNTED FUEL TANK UNTIL 1988 GM MOUNTED ITS FUEL TANKS OUTSIDE THE FRAME RAILS AND ITS VEHICLES FROM THAT PERIOD ARE 24 TIMES MORE PRONE TO FIRES IN FATAL SIDEIMPACT CRASHES THAN TRUCKS BUILT BY FORD MOTOR NHTSA FOUND GM HAS MAINTAINED STEADFASTLY THAT ITS PICKUP TRUCKS MET ALL NHTSA SAFETY REQUIREMENTS AND THAT THEIR OVERALL SAFETY RATE MET OR EXCEEDED THAT OF COMPETING TRUCKS 9304160120 930416 TECHNOLOGY FEDERAL AGENCIES AGREE TO BROADEN AIDS VACCINE TEST BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RESPONDING TO CRITICISM THAT THE GOVERNMENT WAS FAVORING ONE PHARMACEUTICAL COMPANY OVER OTHERS THE DEFENSE DEPARTMENT AND THE HEALTH AND HUMAN SERVICES DEPARTMENT AGREED TO BROADEN A PLANNED TEST OF LONGSHOT AIDS VACCINES CONGRESS ORIGINALLY PROVIDED 20 MILLION FOR THE DEFENSE DEPARTMENT TO CONDUCT CLINICAL TRIALS OF ONLY ONE VACCINE MICROGENESYS INC'S VAXSYN AT THE WALTER REED ARMY INSTITUTE OF RESEARCH BUT UNDER PRESSURE FROM FEDERAL OFFICIALS AND AIDS EXPERTS THE DEPARTMENT TRANSFERRED THE FUNDS TO THE HUMAN SERVICES AGENCY'S NATIONAL INSTITUTES OF HEALTH FOR WIDER TESTING UNLIKE THE PROPOSED DEFENSE DEPARTMENT TESTS THE NIH TRIALS WILL INCLUDE SEVERAL EXPERIMENTAL VACCINES THE TRIALS WILL BE HEADED BY THE NIH ARM HANDLING AIDS RESEARCH THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES NIH SPOKESWOMAN JOHANNA SCHNEIDER SAID THE CLINICAL TRIALS WILL INVOLVE 6000 TO 12000 PEOPLE INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS THE GOAL OF THERAPEUTIC AIDS VACCINES IS TO SLOW OR STOP THE DEVELOPMENT OF HIV IN THOSE ALREADY INFECTED TO HAVE THEIR PRODUCTS INCLUDED IN THE TRIALS PHARMACEUTICAL COMPANIES WILL BE REQUIRED TO SUPPLY THEM FREE TO THE NIH FRANK VOLVOVITZ MICROGENESYS'S PRESIDENT SAID HIS COMPANY HASN'T DECIDED WHETHER TO PARTICIPATE IN THE EXPANDED STUDY BUT GENENTECH INC AND CHIRON CORP BOTH BASED IN CALIFORNIA SAID THEY WERE PLEASED WITH THE CHANGES AND WOULD PARTICIPATE IN THE NEW TRIALS IF ASKED ANOTHER MAKER OF THERAPEUTIC AIDS VACCINES GERMANY'S IMMUNO AG COULDN'T BE REACHED TO COMMENT A COMPETITIVE TRIAL OF SEVERAL EXPERIMENTAL VACCINES WILL PROVIDE THE GREATEST PUBLIC HEALTH BENEFIT AND IS IN THE BEST INTERESTS OF AIDS PATIENTS GENENTECH SPOKESWOMAN LAURA LEBER SAID WHEN CONGRESS PROVIDED MONEY FOR THE TRIAL IT SPECIFIED THAT ONLY MICROGENESYS'S VAXSYN COULD BE TESTED AFTER THE COMPANY HIRED FORMER SEN RUSSELL LONG D LA TO LOBBY KEY LAWMAKERS BUT LAWMAKERS SAID THE GOVERNMENT AGENCIES INVOLVED COULD DECIDE AFTER A REVIEW TO INCLUDE OTHER VACCINES THE DEFENSE DEPARTMENT DIDN'T REMOVE ITSELF ENTIRELY FROM THE PROJECT DEPARTMENT SPOKESWOMAN SUSAN HANSEN SAID THE PENTAGON MAY OFFER ADVICE AND EXPERTISE WHERE APPROPRIATE 9304160119 930416 LAW LEGAL BEAT MORE FIRMS SEE INVENTORS CREATE PATENT LAWSUITS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL SMALL INVENTORS ARE BEATING A PATH TO COURT LAST MONTH AN ILLINOIS MAN WHO CLAIMS TO BE ONE OF THE PIONEERS OF VOICEMAIL TECHNOLOGY SUED BELL ATLANTIC CORP IN A POTENTIALLY BELLWETHER CASE A MISSISSIPPI INVENTOR MEANWHILE FILED A COMPLAINT WITH THE US INTERNATIONAL TRADE COMMISSION ALLEGING THAT COMPUTER DISK DRIVE MAKERS WERE RIPPING HIM OFF OVER THE PAST YEAR OTHER INVENTORS HAVE SUED OVER THE RIGHTS TO EVERYTHING FROM MAGNETIC RESONANCE IMAGING EQUIPMENT TO WATER BEDS THEY'RE COMING OUT OF THE WOODWORK SAYS MARTIN J ADELMAN A PATENTLAW SPECIALIST AT WAYNE STATE UNIVERSITY LAW SCHOOL IN DETROIT IN RECENT YEARS THANKS TO SOME BIG JURY VERDICTS AND SOME ENTERPRISING LAWYERS PATENTS HAVE BECOME HOT PROPERTY AND THE TREND INCREASINGLY IS BENEFITING THE LITTLE GUY LAST YEAR THE NUMBER OF PATENT SUITS INITIATED IN US COURTS JUMPED 23 TO A RECORD 1447 AND A GROWING NUMBER APPEAR TO INVOLVE SMALL INVENTORS SUING BIG COMPANIES AS JURIES AND COURTS HAVE BECOME MORE SYMPATHETIC TO INVENTORS SOME MAJOR LAW FIRMS AND ENTREPRENEURS ARE DISCOVERING THAT THERE IS MONEY TO BE MADE IN THE ONCEARCANE FIELD THE COMPANIES ON THE DEFENSIVE IN SUCH CASES HAVE A MUCH DIFFERENT PERSPECTIVE ALTHOUGH MANY ARE SETTLING CASES AND THE STAKES ARE RISING INVENTOR ROBERT KEARNS WON A 102 MILLION SETTLEMENT FROM FORD MOTOR CO AND A 198 MILLION JURY VERDICT FROM CHRYSLER CORP OVER HIS INTERMITTENT WINDSHIELD WIPER IN A HIGHLY PUBLICIZED CASE CALIFORNIAN GILBERT HYATT HAS WON LICENSES EXPECTED TO BRING IN MILLIONS OF DOLLARS FROM THE LIKES OF SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO OVER A 1990 MICROPROCESSOR PATENT AND NEVADA INVENTOR JEROME LEMELSON HAS TAKEN IN NEARLY 500 MILLION IN THE PAST YEAR FROM LICENSING PATENT RIGHTS TO 42 FOREIGN AUTO MAKERS AND ELECTRONICS COMPANIES INVENTORS THROUGHOUT HISTORY HAVEN'T FARED NEARLY SO WELL FOLK HEROES TO US LIKE FULTON WITH THE STEAMBOAT AND WHITNEY WITH THE COTTON GIN THEY ALL DIED BROKE THEY ALL HAD INVENTIONS STOLEN SAYS ROBERT H RINES A PATENT SCHOLAR AND FOUNDER OF THE FRANKLIN PIERCE LAW CENTER IN CONCORD NH THE ROLE OF THE INDEPENDENT INVENTOR HAS ALWAYS BEEN EXTREMELY HARD NOW COMES PETER THEIS A GURNEE ILL INVENTOR WHO HOLDS 15 PATENTS WHICH HE SAYS COVER SEVERAL OF THE FUNDAMENTAL UNDERLYING TECHNOLOGIES THAT PHONE COMPANIES USE IN VOICEMAIL AND RELATED SYSTEMS LAST MONTH HE SENT A MESSAGE TO THE INDUSTRY VIA A LAWSUIT AGAINST BELL ATLANTIC IN FEDERAL COURT IN ALEXANDRIA VA FOR PATENT INFRINGEMENT SOME OBSERVERS FIGURE THE INDUSTRY IS FACING EXPOSURE OF 500 MILLION OR MORE BELL ATLANTIC SAYS MR THEIS'S CLAIMS ARE INVALID MR THEIS SAYS HE FIRST BEGAN EXPERIMENTING WITH THE TECHNOLOGY IN THE 1960S BUT WHEN HE APPROACHED THE BABY BELLS A YEAR AGO OFFERING LICENSES THERE WASN'T MUCH INTEREST OCTEL COMMUNICATIONS CORP A MAJOR VOICEMESSAGING EQUIPMENT SUPPLIER TO THE PHONE INDUSTRY WENT TO COURT CLAIMING THAT MR THEIS WAS HARASSING ITS CUSTOMERS OCTEL BELIEVES IT IS A LONG AND VERY INAPPROPRIATE STRETCH TO COMPARE MR THEIS'S WORK WITH MODERN VOICEPROCESSING SYSTEMS SAYS DEREK DALEY A LAWYER FOR THE MILPITAS CALIF COMPANY MR THEIS SAYS THE PATENT SYSTEM REWARDS INVENTORS WHO COME UP WITH BASIC TECHNOLOGY AND THAT THE INDUSTRY IS JUST ANGRY BECAUSE HE OUTSMARTED IT TWOHUNDREDFIFTY MILLION PEOPLE USE TELEPHONES IN THIS COUNTRY HE SAYS PEOPLE ARE GOING TO DEVELOP IDEAS THE PHONE COMPANIES HAVEN'T THOUGHT OF IN ANOTHER RECENT CASE HARRY AINE A RETIRED PATENT LAWYER AND CURRENTLY A CATTLE RANCHER IN MISSISSIPPI ALLEGES THAT LEADING DISKDRIVE MAKERS INCLUDING SEAGATE TECHNOLOGY INC AND CONNER PERIPHERALS INC ARE VIOLATING A PATENT HE OBTAINED FOR A STANDARD WAY OF PUTTING A CARBON COATING ON COMPUTER DISKS MR AINE SAYS THE IDEA SPRANG FROM RESEARCH HE DID INTO FRICTION MATERIALS USED IN DISK BRAKES FOR RACE CARS BECAUSE MOST COMPUTER DISKS ARE MADE OVERSEAS MR AINE HAS ASKED THE ITC TO BAR COMPANIES FROM IMPORTING THE DEVICES IN HOPES OF EXTRACTING A SETTLEMENT CONNER PERIPHERALS RESPONDED BY FILING A SUIT IN FEDERAL COURT IN SAN JOSE CALIF ALLEGING THAT MR AINE'S PATENT IS INVALID MR AINE CLAIMS IN HIS ITC COMPLAINT THAT POTENTIAL DAMAGES ARE MASSIVE IN LIGHT OF THE INDUSTRY'S ANNUAL SALES OF ABOUT 1 BILLION WORLDWIDE THE INVENTOR PREVIOUSLY LICENSED A FEW MANUFACTURERS AT A RATE OF 20 CENTS A DISK ALTHOUGH HE SAYS THAT NO LONGER IS A FAIR ROYALTY FOR THOSE PEOPLE THAT HAVE SNUBBED ME WHICH INCLUDES MOST OF THE INDUSTRY LAWYERS INCREASINGLY PLAY A KEY ROLE IN SUCH SUITS AND NOW ARE TAKING SUCH CASES ON A CONTINGENCY FEE BASIS WHICH HAS HELPED TO ATTRACT SOME MAJOR FIRMS TO THE PRACTICE MR THEIS HAS HIRED THE SILICON VALLEY FIRM OF BROWN & BAIN WHICH IS MORE FAMOUS FOR REPRESENTING SUCH HEAVYWEIGHT CLIENTS AS APPLE COMPUTER INC AND INTERNATIONAL BUSINESS MACHINES CORP MR AINE HAS LINED UP A TOP TRADE LAWYER AT THE CHICAGO FIRM OF KIRKLAND & ELLIS OUTSIDE INVESTORS ALSO ARE SEEING SOME UPSIDE POTENTIAL FROM BANKROLLING INVENTORS LAST YEAR A PARTNERSHIP ORGANIZED BY THE DALLAS VENTURECAPITAL FIRM OF SEVIN ROSEN MANAGEMENT CO WON A 346 MILLION JURY VERDICT AGAINST AMERICAN TELEPHONE & TELEGRAPH CO IN A PATENT FIGHT OVER RIGHTS TO AT&T'S FLAGSHIP SWITCHING SYSTEM THE CASE IS ON APPEAL DEFENSE LAWYERS THINK THE INVENTORS ARE TINKERING WITH THE LEGAL SYSTEM AND THEIR CLIENTS ARE PLAYING HARDBALL IN A NUMBER OF CASES IN SOME INSTANCES THE COMPANIES ARE CHALLENGING THE PATENTS THEMSELVES SAYING THEY REPRESENT OBSOLETE OR OBVIOUS TECHNOLOGY TEXAS INSTRUMENTS INC IS DISPUTING MR HYATT'S MICROPROCESSOR PATENT CLAIMING THAT THE REAL PIONEER IN THE FIELD WAS A TEXAS INSTRUMENTS EMPLOYEE COMPANIES SUCH AS MOTOROLA INC FORD AND MITSUBISHI ELECTRIC CORP HAVE RECENTLY SUED MR LEMELSON AND A FEDERAL APPEALS COURT LAST YEAR UPSET A 70 MILLION JURY VERDICT THAT MR LEMELSON WON IN A CASE AGAINST MATTEL INC THE SYSTEM IS HAVING TROUBLE COPING WITH THE NEW DISCOVERY ON THE PART OF LAWYERS GENERALLY THAT THERE IS MONEY TO BE MADE IN WHAT COULD WELL BE A WEAK PATENT AND GETTING IT TO A JURY ASSERTS MR ADELMAN THE WAYNE STATE LAW PROFESSOR BUT SMALL INVENTORS MANY OF WHOM CONTINUE TO STRUGGLE FEEL THEY ARE ONLY BEGINNING TO LEVEL THE PLAYING FIELD FOR SO MANY YEARS THE NEWS WAS THE BIG GUYS WITH MONEY BEAT YOU TO DEATH SAYS CHARLES P HALL A CALIFORNIA INVENTOR CREDITED WITH PIONEERING THE WATER BED A 1985 CASE HE BROUGHT AGAINST A TAIWANESE IMPORT COMPANY DIDN'T SETTLE UNTIL LAST YEAR HE SAYS EVEN THOUGH HE HAD WON A FAVORABLE JURY VERDICT EARLY ON OVER THE PAST YEAR HE HAS FILED 30 ADDITIONAL SUITS AND HAS BECOME A RATHER SOUGHTAFTER INSPIRATIONAL SPEAKER AT INVENTORS' MEETINGS I THINK THEY ARE ALL BUOYED BY THE FACT THAT THERE IS A SILVER LINING IF YOU HANG IN THERE MR HALL SAYS A SPERM DONOR ISN'T NECESSARILY ENTITLED TO ANY PARENTAL RIGHTS A NEW YORK STATE COURT JUDGE RULED FAMILY COURT JUDGE EDWARD M KAUFMANN DENIED ALL SUCH RIGHTS TO A DONOR WHO PAID LITTLE ATTENTION TO HIS BIOLOGICAL DAUGHTER FOR YEARS BUT LATER DEMANDED TO BE DECLARED HER LEGAL FATHER IN OTHER STATES INCLUDING CALIFORNIA COURTS HAVE GIVEN SPERM DONORS LIMITED PARENTAL RIGHTS ALTHOUGH SOME STATES DENY SUCH RIGHTS WHEN THE INSEMINATION IS PERFORMED BY A LICENSED PHYSICIAN ON A MARRIED WOMAN IN NEW YORK A STATE LAW GIVES PATERNITY RIGHTS TO BIOLOGICAL FATHERS BUT THE JUDGE SAID THAT THE SPERM DONOR HAD BY HIS ACTIONS RELINQUISHED HIS RIGHTS UNDER THE LAW AND THAT IT WOULD BE UNFAIR TO RESTORE THEM NOW THE DECISION DOESN'T ADDRESS UNDER WHAT CIRCUMSTANCES A DONOR MIGHT BE ENTITLED TO PARENTAL RIGHTS THE DAUGHTER WHO IS 11 YEARS OLD IS BEING RAISED BY A LESBIAN COUPLE IT IS HER MOTHERS WHO HELP HER CARE FOR THE FAMILY DOG WHO TUCK HER IN AT NIGHT AND WHO WATCH TELEVISION WITH HER THE JUDGE SAID HE ADDED THAT THE GIRL WAS HAVING NIGHTMARES ABOUT HER FAMILY BEING BROKEN UP BECAUSE OF THE LAWSUIT EMILY OLSHANSKY A MANHATTAN ATTORNEY FOR THE SPERM DONOR SAID HER CLIENT WILL APPEAL SHE SAID THAT THE MAN HAD AN EXTENSIVE RELATIONSHIP WITH HIS BIOLOGICAL DAUGHTER AND THAT THE CHILD SENT HIM FATHER'S DAY CARDS WHO'S NEWS WENDELL F HOLLAND FORMER PENNSYLVANIA PUBLIC UTILITY COMMISSIONER HAS JOINED NEW YORK LAW FIRM LEBOEUF LAMB LEIBY & MACRAE MR HOLLAND A PARTNER IN THE FIRM'S HARRISBURG PA OFFICE WILL SPECIALIZE IN UTILITY REGULATION AND LEGISLATION SHRINKING STAFF GIBSON DUNN & CRUTCHER SAID IT CREATED TWO NEW SENIOR ADMINISTRATIVE POSTS AND ELIMINATED 44 STAFF JOBS PARTLY TO REDUCE COSTS THE LAW FIRM PLANS TO HIRE AN EXECUTIVE DIRECTOR AND A DIRECTOR OF HUMAN RESOURCES THE JOB CUTS DIDN'T INCLUDE ANY ATTORNEYS THE FIRM BASED IN LOS ANGELES IS ONE OF THE NATION'S LARGEST WITH 700 ATTORNEYS IN 18 OFFICES WORLDWIDE JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9304160118 930416 REVIEW & OUTLOOK EDITORIAL REAFFIRMING GOVERNMENT DURING LAST YEAR'S CAMPAIGN THE PHRASE REINVENTING GOVERNMENT WAS ALL THE RAGE AMONG NEWLOOK DEMOCRATS TAKING ITS MESSAGE FROM A POPULAR BOOK OF THAT NAME IT WAS ABOUT REFASHIONING A LEAN MEAN PUBLIC MACHINE PEOPLE LIKED THE MESSAGE BUT THE REINVENTING CANDIDATE NEVER GOT AROUND TO GIVING A LONGPROMISED SPEECH ON HOW HE WOULD CHALLENGE THE ENTRENCHED PUBLIC SECTOR UNIONS THERE ISN'T MUCH DISPUTE ON THE NEED FOR SOME REINVENTION COMPTROLLER GENERAL CHARLES BOWSHER SAYS THE FEDERAL BUREAUCRACY HAS BECOME A DINOSAUR WE HEAR THAT THE CLINTON WHITE HOUSE HAS PLANS IN THIS AREA SOMEWHERE OUT THERE IN THE DISTANT MISTS BUT SO FAR ALL THE EARLY POLITICAL CAPITAL HAS BEEN SPENT ON SUCH PIVOTAL ELECTION ISSUES AS GAYS IN THE MILITARY AND BRINGING MULTICULTURAL DIVERSITY TO THE BELTWAY BUREAUCRACY WE WORRY THAT THE SMALLER MORE EFFICIENT GOVERNMENT PEOPLE THOUGHT THEY WERE VOTING FOR LAST FALL ISN'T MUCH ON THE MIND OF THE CLINTON PRESIDENCY ANYMORE CONTRACTING OUT HAS BEEN ONE OF THE FEW GENUINE REFORMS IN GOVERNMENT ADMINISTRATION RATHER THAN HIRE CIVIL SERVANTS WHO CAN'T BE DYNAMITED OUT OF THEIR JOBS THE GOVERNMENT NOW SPENDS ABOUT 100 BILLION A YEAR OR 7 OF THE FEDERAL BUDGET CONTRACTING FOR SUCH SERVICES AS CONSTRUCTION AND DATA PROCESSING GENERALLY A GOVERNMENT CONTRACT GOES TO A PRIVATE FIRM AFTER FEDERAL EMPLOYEES HAVE BEEN ALLOWED TO BID ON THE WORK A PRIVATE CONTRACTOR MUST SHOW HE CAN SAVE THE GOVERNMENT AT LEAST 10 OVER USING FEDERAL WORKERS AND BE ABLE TO COPE WITH A PAPERWORK BURDEN THAT DETERS MOST BIDDERS CONTRACTING OUT WORKS WELL WHEN IT'S TRIED THE GENERAL ACCOUNTING OFFICE ROUTINELY FINDS THE SAVINGS AVERAGE 25 AS WITH ANY PROGRAM INVOLVING PUBLIC MONEY THERE ARE SOME ABUSES THE DEFENSE DEPARTMENT AND EPA HAVE POURED BILLIONS INTO DUBIOUS CONTRACTS WITH CONSULTANTS WHO'VE BECOME KNOWN AS BELTWAY BANDITS BUT THE REAL COMPLAINT ABOUT CONTRACTING OUT COMES FROM FEDERAL EMPLOYEE UNIONS WHICH KNOW THAT PRIVATE FIRMS WILL DISPLACE FEDERAL WORKERS IF CONTRACTING OUT IS ALLOWED TO SPREAD DURING THE 1980S THEY PERSUADED CONGRESS TO PUT LIMITS ON THE PRACTICE BUT THE MEASURES WERE VETOED BY PRESIDENT REAGAN UNDER GEORGE BUSH OMB DIRECTOR RICHARD DARMAN WANTED TO REDUCE FRICTION WITH CONGRESS AND HE PUT THE BRAKES ON FURTHER REFORM NOW MR DARMAN'S OMB SUCCESSOR LEON PANETTA IS GOING ALONG WITH CONGRESSIONAL EFFORTS TO LIMIT CONTRACTING OUT LAST MONTH PRESIDENT CLINTON WHILE FLYING BACK FROM A DETROIT TOWN MEETING WITH A LEADING CRITIC OF CONTRACTING OUT MICHIGAN REP JOHN DINGELL AGREED TO CALL FOR A FULLSCALE REVIEW OF ALL SERVICE CONTRACTS MR PANETTA'S REVIEW MAY INDEED UNCOVER SOME IMPROPER PRACTICES BUT IT INCLUDES A WORRISOME STIPULATION THAT FEDERAL AGENCIES ESTABLISH WHETHER ANY OF THE CONTRACTED SERVICES ARE INHERENTLY GOVERNMENTAL AND THEREFORE INAPPROPRIATE FOR CONTRACTING OUTSIDE OF GOVERNMENT THE PANETTA REVIEW COULD EASILY BECOME A POLITICAL PAYOFF TO THE HUGE PUBLIC EMPLOYEE UNIONS YOU COULD THEN KISS GOODBYE THE PROMISE OF A GOVERNMENT THAT WORKS BETTER TIMOTHY CLARK THE EDITOR OF GOVERNMENT EXECUTIVE MAGAZINE SAYS THAT AGENCIES HAVE NO CHOICE BUT TO USE CONTRACTING OUT THEY HAVE TO DO IT TO GET ALL THE WORK DONE THAT CONGRESS EXPECTS HE SAYS THE CLINTON ADMINISTRATION CAN STILL PUT GOVERNMENT REFORMERS AT EASE IF ITS REVIEW OF CONTRACTING OUT FOCUSES ONLY ON ABUSES AND NOT THE CONCEPT TO ITS CREDIT THE OFFICE OF VICE PRESIDENT AL GORE IS LEADING A TASK FORCE ON A SIXMONTH REVIEW OF EVERY GOVERNMENT DEPARTMENT TO TRY AND IMPROVE THEIR MANAGEMENT AND STRUCTURE WE SUSPECT THE TASK FORCE WILL TAKE ITS WORK SERIOUSLY BUT WONDER IF THE CLINTON POLITICAL STRATEGISTS WILL TAKE ITS RESULTS SERIOUSLY POLLS SHOW THAT ABOUT 70 OF AMERICANS BELIEVE THAT WHEN THE GOVERNMENT RUNS SOMETHING IT IS USUALLY INEFFICIENT AND WASTEFUL IF GOVERNMENT SERVICES WERE A CONSUMER PRODUCT THEY'D HAVE BEEN RECALLED YEARS AGO THE SIGNALS TO DATE SUGGEST THAT CLINTONITE POLITICS MOST OF ALL DESIRES A BUREAUCRACY THAT IS CONTENT AND ONBOARD FOR A FAT FEDERAL AGENDA 9304160117 930416 NYNEX TO CUT COSTS IN PHONE BUSINESS PROFIT DROP POSTED BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL NYNEX CORP SAID IT PLANS TO SLASH COSTS IN ITS TELEPHONE OPERATIONS BY 35 TO 40 OVER THE NEXT SEVERAL YEARS THE COMPANY ALSO POSTED A 2 DECLINE IN FIRSTQUARTER NET INCOME REFLECTING A ONETIME GAIN A YEAR EARLIER IN ANNOUNCING FIRSTQUARTER RESULTS NYNEX CHAIRMAN WILLIAM FERGUSON SAID TO CONTINUE THE MOMENTUM IN CONTROLLING OUR COSTS THE NYNEX TELECOMMUNICATIONS GROUP HAS UNVEILED PLANS TO REENGINEER' HOW IT SERVES CUSTOMERS LOOKING FOR WAYS TO FURTHER IMPROVE SERVICE AND REDUCE COSTS JUST HOW MUCH THE PHONE SUBSIDIARIES MIGHT CUT THEIR WORK FORCES IS UNCERTAIN A NYNEX SPOKESMAN SAID THE COMPANY HE SAID HAS SET A TARGET OF 35 TO 40 IN COST REDUCTIONS OVER THE NEXT SEVERAL YEARS WITHIN THE TELECOMMUNICATIONS GROUP WHICH INCLUDES NEW YORK TELEPHONE AND NEW ENGLAND TELEPHONE A MAJOR PART OF THAT WILL LIKELY COME FROM FORCE REDUCTIONS HE SAID THE TELECOMMUNICATIONS GROUP CURRENTLY EMPLOYS ABOUT 70300 PEOPLE DOWN NEARLY 2 FROM A YEAR AGO LOCAL PHONE COMPANIES HAVE BEEN UNDER PRESSURE TO CUT COSTS AS COMPETITION GROWS NYNEX'S PHONE COMPANIES FOR EXAMPLE ALREADY FACE COMPETITION IN PRIVATELINE SERVICES FOR BIG BUSINESS CUSTOMERS FROM TELEPORT COMMUNICATIONS GROUP AND METROPOLITAN FIBER SYSTEMS AT THE SAME TIME THE PHONE COMPANIES ARE SCRAMBLING TO PROVIDE FASTER AND MORE RELIABLE PHONE SERVICE AND ARE INSTALLING COSTSAVING TECHNOLOGIES IN THEIR NETWORKS THAT ALSO LET THEM EXPAND THE RANGE OF SERVICES THEY OFFER FOR THE FIRST QUARTER NYNEX SAID NET INCOME WAS 3311 MILLION OR 160 A SHARE DOWN FROM 3362 MILLION OR 165 A SHARE THE YEAR BEFORE IN THE 1992 QUARTER THE COMPANY HAD A GAIN OF 20 MILLION OR 10 CENTS A SHARE FROM INTEREST INCOME FROM A FEDERAL TAX SETTLEMENT WITHOUT THE GAIN EARNINGS WOULD HAVE RISEN 46 REVENUE ROSE TO 33 BILLION FROM 324 BILLION OPERATING REVENUE FOR THE TELECOMMUNICATIONS GROUP ROSE 25 TO 286 BILLION EXCLUDING REGULATORY ACCOUNTING ADJUSTMENTS TELECOMMUNICATIONS REVENUE CLIMBED 16 LARGELY REFLECTING A 21 INCREASE IN ACCESS LINES TO A TOTAL 158 MILLION PHONE LINES IN SERVICE AS OF MARCH 31 OPERATING PROFIT ROSE 82 TO 6933 MILLION COMPARED WITH 6409 MILLION THE YEAR BEFORE 9304160116 930416 INTERNATIONAL SIBERIAN GAS OFFERS UNTAPPED PROMISE HUGE RESERVES COULD SOLVE EUROPE'S ENERGY NEEDS BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL NOVI URENGOI RUSSIA SLEEPING BENEATH THE FROZEN SIBERIAN TUNDRA MAY LIE THE ANSWER TO EUROPE'S GROWING ENERGY NEEDS AND PERHAPS A MAJOR COMPETITIVE THREAT TO THE OIL INDUSTRY IT IS SIBERIAN NATURAL GAS RUSSIA HAS TAPPED ONLY A SMALL PART OF ITS GIANT RESERVES BUT IT ALREADY PRODUCES MORE ENERGY JUST IN THE FORM OF NATURAL GAS THAN SAUDI ARABIA AND THE UNITED ARAB EMIRATES DO TOGETHER IN THE FORM OF OIL AND THEY ARE TWO OF THE WORLD'S LEADING PRODUCERS BRITISH PETROLEUM CO SAYS RUSSIA'S NATURALGAS RESERVES MAY ACCOUNT FOR 40 OF THE WORLD'S TOTAL RESERVES THEREIN LIES THE PROMISE FOR BOTH EUROPE'S ENERGY CONSUMERS AND GAZPROM THE RUSSIAN GAS MONOPOLY IF THE RUSSIANS CAN FIND THE MONEY TO DEVELOP AND DELIVER THE GAS BY THE END OF THIS DECADE WESTERN EUROPE ALREADY A MAJOR NATURALGAS CUSTOMER OF THE RUSSIANS IS EXPECTED TO NEED ONETHIRD MORE GAS THAN IT BURNS NOW OR AN ADDITIONAL 100 BILLION CUBIC METERS 35 TRILLION CUBIC FEET A YEAR ACCORDING TO THE INTERNATIONAL ENERGY AGENCY OTHERS PREDICT AN EVEN SHARPER RISE IN DEMAND AS AN ENERGY SOURCE NATURAL GAS HAS SLOWLY CHIPPED AWAY AT OIL FOR YEARS IN EUROPE CHEAP CLEANBURNING GAS HAS OVERTAKEN OIL AS THE FUEL OF CHOICE FOR POWER GENERATION AND IT IS MAKING INROADS IN THE HEATING MARKET THE WRITING IS ON THE WALL SAYS SECRETARYGENERAL SUBROTO OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES OR OPEC GAS WILL CONTINUE TO REPLACE OIL HE PREDICTS ESPECIALLY IN EUROPE HE ACKNOWLEDGES THAT THE WORLD IS NOW ENTERING THE METHANE AGE AS A RESULT OIL COMPANIES ARE REVAMPING THEIR REFINERIES TO PRODUCE INCREASING AMOUNTS OF LIGHT PRODUCTS SUCH AS GASOLINE AND LESS OF HEAVY PRODUCTS SUCH AS FUEL OIL INDEED OPEC PREDICTS THAT EUROPEAN DEMAND FOR NATURAL GAS WILL GROW MORE THAN FOUR TIMES FASTER THAN DEMAND FOR OIL IN THE NEXT FEW YEARS THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT RECKONS THAT GAS USE IN WESTERN EUROPE COULD DOUBLE IN THE NEXT 20 YEARS IT'S THE RUSSIANS WHO ARE AIMING TO MEET A BIG SLICE OF THAT NEW DEMAND WITHOUT THE HELP OF FOREIGN INVESTMENT RUSSIA DOUBLED ITS GAS OUTPUT DURING THE 1980S NOW AFTER A FOURYEAR INVESTMENT HIATUS IT IS PREPARING TO AWAKEN MORE OF THE IMMENSE GAS FIELDS SLUMBERING IN SIBERIA GAZPROM AIMS TO BOOST GAS OUTPUT ABOUT 17 IN FIVE YEARS AND IT EXPECTS TO INCREASE EXPORTS TO WESTERN EUROPE 50 RUSSIAN GAS NOW ACCOUNTS FOR ABOUT 25 OF WESTERN EUROPE'S NEEDS THE PROBLEM COMES IN MAKING THAT HAPPEN GAZPROM SAYS IT NEEDS ABOUT 9 BILLION IN WESTERN CREDITS TO CARRY OUT ITS FIVEYEAR PLAN TO INCREASE OUTPUT THAT PRESENTS NO MAJOR PROBLEM SAYS RIM IVANOVICH VYAKHIREV THE CHAIRMAN OF GAZPROM HE MAINTAINS HE ALREADY HAS RAISED 28 BILLION AND SAYS HE IS CONFIDENT ABOUT GETTING THE REST A MAJOR PART OF THE 3 BILLIONPLUS US AID PACKAGES FOR RUSSIA ANNOUNCED BY PRESIDENT CLINTON IN THE PAST TWO WEEKS CONSISTS OF LOAN GUARANTEES AND OTHER AID FOR RUSSIA'S ENERGY SECTOR STILL GAS EXPERTS IN EUROPE ARE SKEPTICAL ABOUT WESTERN CREDIT FOR THE PROJECT CITING THE POLITICAL TURMOIL IN RUSSIA AND NICHOLAS WHITE A GAS CONSULTANT FOR ARTHUR D LITTLE IN LONDON CHALLENGES MR VYAKHIREV'S COST ESTIMATES FOR THE FIVEYEAR PLAN AS UNREALISTICALLY LOW HE SAYS TO BUILD A PIPELINE FROM WESTERN SIBERIA TO SAY THE CZECHGERMAN BORDER WOULD COST BETWEEN 13 BILLION AND 15 BILLION USING WESTERN STANDARDS AND EQUIPMENT DEVELOPING NEW SIBERIAN FIELDS WOULD COST 3 BILLION TO 4 BILLION MORE HE SAYS STILL A FLOOD OF CHEAP SIBERIAN GAS COULD HAVE WIDE IMPACT IN EUROPE IT WOULD INCREASE WESTERN EUROPE'S ALREADY HEAVY RELIANCE ON RUSSIAN SUPPLIES AND IT ALSO COULD BLOCK DEVELOPMENT OF SOME HIGHCOST GAS FIELDS ELSEWHERE SUCH AS NORWEGIAN FIELDS IN THE BARENTS SEA THE INTERNATIONAL ENERGY INDUSTRY COULD BE WEAKENED BY THE RIPPLE EFFECTS OF DOWNWARD PRESSURE ON PRICES THE COMPETITION BETWEEN OIL AND GAS IS ALREADY KEEPING PRICES DOWN OPEC'S DR SUBROTO SAYS CLEARLY THERE IS POTENTIAL FOR AN INVASION OF RUSSIAN GAS BASED ON ENERGY CONTENT SIBERIA'S URENGOI GAS FIELD ALONE OUTPRODUCES NOT ONLY THE ENTIRE NORTH SEA BRITISH AND NORWEGIAN FIELDS COMBINED BUT ALSO IRAN WHOSE CAPACITY RANKS SECOND ONLY TO THAT OF SAUDI ARABIA BUT TO REACH EUROPE'S PIPELINE GRID SIBERIAN GAS MUST TRAVERSE THOUSANDS OF MILES OF RUGGED FROZEN TERRITORY WHEN GAZPROM OPENS ITS VALVES WIDER IN SIBERIA IT TAKES NEARLY A WEEK BEFORE AN INCREASE IN DELIVERIES REACHES GERMANY JACQUES ATTALI THE PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT AND OTHERS POINT OUT THAT GAZPROM'S ABILITY TO MEET ITS AMBITIOUS GOALS WILL DEPEND ON MOSCOW'S ABILITY TO FIND BUYERS RAISE THE VAST INVESTMENTS NEEDED TO BOOST OUTPUT AND GUARANTEE A SECURE SUPPLY SOME GAS EXPERTS SAY THAT TODAY'S LOW ENERGY PRICES COULD PRECLUDE DEVELOPMENT OF THE HIGHCOST GAS FIELDS IN RUSSIA'S MOST REMOTE REGIONS AT STATOIL THE NORWEGIAN STATEOWNED OIL AND GAS COMPANY A SPOKESMAN ACKNOWLEDGES THAT RUSSIA COULD FORCE DOWN PRICES BUT HE ADDS THAT THE RUSSIANS KNOW THE PRICE CONSEQUENCES OF PUMPING LARGE SUPPLIES HE RECKONS RUSSIA WOULD BE DISINCLINED TO TAKE REVENUE LOSSES EVEN IF THE HUGE SIZE OF THEIR FIELDS MEANS LOW UNIT COSTS MEANWHILE RUSSIAN GAS DOES FACE COMPETITION OTHER SUPPLIERS OF GAS TO EUROPEBOTH ACTUAL AND POTENTIALHAVE EXPANSION PLANS OF THEIR OWN ALGERIA AND NORWAY EXPECT TO DOUBLE THEIR EXPORTS BY 2000 ALGERIA IS EXPANDING THE CAPACITY OF A PIPELINE TO ITALY AND BUILDING ONE TO SPAIN NORWAY TOO PLANS TO BRING NEW GAS FIELDS ON STREAM IRAN IS PLANNING A PIPELINE THAT WOULD TRAVERSE TURKEY TO DELIVER GAS TO EUROPE IRAN HAS THE LARGEST GAS RESERVES AFTER RUSSIA AT 13 OF THE WORLD TOTAL KAZAKHSTAN WHERE BRITISH PETROLEUM AND ITALY'S AGIP A UNIT OF STATE HOLDING COMPANY ENTE NAZIONALE IDROCARBURI ARE DEVELOPING RESOURCES COULD SEND AROUND 10 BILLION CUBIC METERS ANNUALLY WITHIN FIVE YEARS THE CATCH IS THAT THIS ASSUMES RUSSIA WILL LET GAS FROM KAZAKHSTAN FLOW NORTHWEST TO EUROPE THROUGH RUSSIAN PIPELINES THE POLITICAL RISKS FOR GAZPROM ARE ENORMOUS THERE COULD BE A CHANGE IN MOSCOW'S ATTITUDE TO GAZPROM SO FAR RUSSIAN GOVERNMENTS HAVE PAMPERED THE MONOPOLY KEEPING IT IN ONE PIECE WHILE ALLOWING IT TO KEEP AROUND HALF OF ITS HARDCURRENCY EARNINGS WHAT IF THE GOVERNMENT TOOK A LARGER SHARE FROM GAZPROM ASKS THANE GUSTAFSON WHO FOLLOWS EVENTS IN THE FORMER SOVIET UNION FOR CAMBRIDGE ENERGY RESEARCH ASSOCIATES IN WASHINGTON ACCORDINGLY THERE IS A RELUCTANCE IN WESTERN EUROPE TO RELY EVEN MORE HEAVILY ON RUSSIAN SUPPLIES 9304160115 930416 INTERNATIONAL IT COULD BE CIAO' TO CHAOS AND COLOR OF ITALIAN LEGISLATURE ALIVE MEN' OTHER TINY PARTIES MAY BE CASUALTIES SUNDAY IN ELECTORALREFORM VOTE BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN THIS SUNDAY VALENTINO MARTELLI INTENDS TO VOTE HIMSELF OUT OF A JOB HIS FEDERALISM PENSIONERS ALIVE MEN PARTY WILL DISAPPEAR IF THIS WEEKEND'S REFERENDUM ON ITALIAN SENATE ELECTORAL REFORM PASSES TO TELL YOU THE TRUTH I'M ASHAMED OF MY PARTY ALIVE MEN DEAD MEN IT DOESN'T MEAN ANYTHING ANYWAY SAYS THE 50YEAROLD WHO IS HIS PARTY'S ONLY SENATOR HE PLANS TO VOTE IN FAVOR OF THE REFERENDUM AND RETURN TO BEING A FULLTIME SURGEON THE TINY PARTIES THAT MADE ITALY'S LEGISLATURE ONE OF THE MOST COLORFUL AND CHAOTIC IN THE WORLD ARE LIKELY TO BE THE MOST VISIBLE CASUALTY OF THE REFERENDUM SHOULD IT PASS MOST OF THE CHAMBER INSTEAD WILL BE ELECTED THROUGH A USSTYLE MAJORITY SYSTEM LEAVING ROOM FOR TWO AT MOST THREE POLITICAL PARTIES TO GOVERN PROPONENTS OF THE REFERENDUM SAY IT IS THE BEGINNING OF THE END OF A PARTYDOMINATED POLITICAL SYSTEM THAT ALLOWED CORRUPTION TO BREED FOR MORE THAN FOUR DECADES WHILE OPPONENTS ARGUE THAT ITALY'S PRESENT PROPORTIONAL SYSTEM IS DEMOCRACY IN ITS PUREST FORM SUPPORTERS SAY THAT THE SYSTEM IS OUTMODED IF THE REFERENDUM IS APPROVED PARLIAMENT IS EXPECTED TO PASS A SIMILAR REFORM FOR THE LARGER CHAMBER OF DEPUTIES NEW ELECTIONS COULD THEN BE CALLED IN AUTUMN AT THE EARLIEST AND AN ERA OF MORE EFFICIENT GOVERNMENT COULD BEGIN THE BORDER BETWEEN POSITIVE CHANGE AND TUMULT IN ITALY IS VERY THIN SAYS ROMANO PRODI FORMER CHAIRMAN OF STATE HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE AND CONSIDERED A CONTENDER FOR A POST IN A NEW GOVERNMENT THE FIRST STEP TOWARD POSITIVE CHANGE IS PASSING THE REFERENDUM BUT THE PROPOSAL'S CHANCE OF SUCCESS HAS BECOME INCREASINGLY UNCLEAR THOUGH LIKELY TO PASS OPPONENTS SAY IT WILL NOT GO FAR ENOUGH TOWARD BREAKING WITH THE PAST THEY ARGUE THAT THE CURRENT PARLIAMENT IS TOO DISCREDITED BY THE CURRENT KICKBACK AND CORRUPTION SCANDALS TO ENACT MEANINGFUL CONSTITUTIONAL REFORM MOREOVER THE SCANDALTAINTED TRADITIONAL PARTIES HAVE ENDORSED THE REFERENDUM MAKING ANTIESTABLISHMENT VOTERS SKEPTICAL ABOUT VOTING IN FAVOR POLLS SHOW ONETHIRD OF ALL VOTERS ARE STILL UNDECIDED STILL PASSING THE REFERENDUM WOULD BRING ABOUT THE BIGGEST REFORM TO ITALY'S POLITICAL SYSTEM IN 45 YEARS SPEARHEADED BY MARIO SEGNI A FORMER PRESIDENT'S SON WHO RECENTLY BROKE WITH THE LEADING CHRISTIAN DEMOCRATS THE REFERENDUM MOVEMENT HAS COME TO SYMBOLIZE GRASSROOTS POWER UNTIL NOW WHAT IS POSSIBLE IN ENGLAND OR AMERICA HAS NOT BEEN POSSIBLE IN ITALY THAT IS WHOEVER GOVERNS POORLY GETS KICKED OUT AND THE OPPOSITION IS THEN CALLED TO GOVERN SAYS ENZO BIANCO A PARLIAMENTARY DEPUTY WHO WITH MR SEGNI IS LEADING THE REFERENDUM DRIVE AS THE CORRUPTION SCANDALS SHOW ITALY'S LARGE NUMBER OF PARTIES NECESSITATED BROAD COALITIONS OF OFTEN IDEOLOGICALLY INCONSISTENT GROUPS TO FORM GOVERNING MAJORITIES THIS FRAGILITY GAVE ENORMOUS POWER TO PARTY BOSSES YOU VOTED FOR A PARTY WITHOUT KNOWING WHETHER IT WOULD BE PART OF THE GOVERNMENT OR THE OPPOSITION WHO ITS ALLIES WOULD BE WHO ITS ENEMIES WOULD BE AND WHAT ITS POLICIES WOULD BE MR BIANCO SAYS FEAR OF ELECTING THE COMMUNIST PARTY ITALY'S SECOND LARGEST KEPT THE SAME PARTIES IN POWER SINCE THE END OF WORLD WAR II WITH THE RULING COALITION PARTIES NOW DISCREDITED AND THE FEAR OF COMMUNISM OVER ITALY HAS BOTH A WEAK GOVERNMENT AND NO ORGANIZED OPPOSITION 9304160114 930416 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 DUQUESNE LIGHT CO 100 MILLION OF FIRST MORTGAGE AND COLLATERAL TRUST BONDS DUE APRIL 15 2023 PRICED AS 7 5/8 S AT 9955 TO YIELD 7663 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 093 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR NOTE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO MARTIN MARIETTA TECHNOLOGIES INC 700 MILLION THREEPART ISSUE OF SECURITIES PRICED THROUGH DEALERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 400 MILLION OF NOTES DUE APRIL 15 2003 WAS PRICED AS 6 1/2 S AT 99563 TO YIELD 656 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 07 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE SECOND PART CONSISTING OF 150 MILLION OF DEBENTURES DUE APRIL 15 2013 WAS PRICED AS 7 3/8 S AT 98978 TO YIELD 7474 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 075 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND THE THIRD PART CONSISTING OF 150 MILLION OF DEBENTURES DUE APRIL 15 2023 WAS PRICED AS 7 3/4 S AT 99719 TO YIELD 7774 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 105 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND ALL THREE PARTS ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE SECURITIES ARE GUARANTEED BY THE BORROWER'S PARENT MARTIN MARIETTA CORP MCDONALD'S CORP 200 MILLION MARKS OF 6 1/4 EUROBONDS DUE MAY 27 1998 AT AN ISSUE PRICE OF 101 5/8 VIA LEAD UNDERWRITER DEUTSCHE BANK AG THE BONDS YIELD 641 ANNUALLY AT THE COMANAGERS' BREAKEVEN PRICE A SPREAD OF ABOUT 30 BASIS POINTS ABOVE THE GERMAN BUNDESOBLIGATIONEN NO 105 THE BORROWER'S OUTSTANDING SENIOR DEBT IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P THE FRANKFURTLISTED BONDS ARE DENOMINATED IN 1000 MARKS AND 10000 MARKS TEXAS UTILITIES ELECTRIC CO 500 MILLION THREEPART ISSUE OF FIRST MORTGAGE BONDS PRICED THROUGH DEALERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 175 MILLION OF BONDS DUE APRIL 1 1998 WAS PRICED AS 5 7/8 S AT 99932 TO YIELD 589 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 084 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART CONSISTING OF 100 MILLION OF BONDS DUE APRIL 1 2003 WAS PRICED AS 6 3/4 S AT 99352 TO YIELD 684 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 095 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE THIRD PART CONSISTING OF 225 MILLION OF BONDS DUE APRIL 1 2024 WAS PRICED AS 7 7/8 S AT 99819 TO YIELD 789 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 115 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND ALL THREE PARTS ARE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P TEXAS UTILITIES ELECTRIC IS A UNIT OF TEXAS UTILITIES CO CLEARWATER FLA 53 MILLION SERIES 1993 WATER AND SEWER REVENUE REFUNDING BONDS PRICED BY SMITH BARNEY HARRIS UPHAM & CO INC YIELDS RANGE FROM 26 IN 1993 TO 567 IN 2018 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P HOLLYWOOD FLA 137 MILLION SERIES 1993 WATER AND SEWER REVENUE REFUNDING BONDS PRICED BY A FIRST BOSTON CORP GROUP YIELDS RANGE FROM 46 IN 1999 TO 574 IN 2023 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P OMAHA NEB PUBLIC POWER DISTRICT 1642 MILLION 1993 SERIES B ELECTRIC SYSTEM REVENUE BONDS PRICED BY A LEHMAN BROTHERS GROUP YIELDS RANGE FROM 26 IN 1994 TO 578 IN 2017 BOTH MOODY'S AND S&P HAVE RATED THE ISSUE DOUBLEA FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES GOLD 1522 IS BACKED BY FREDDIE MAC 30YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2992 YEARS FEDERAL HOME LOAN MORTAGAGE CORP 200 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES G012 IS BACKED BY SEASONED 8 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 14 YEARS EUROPEAN TELECOMMUNICATIONS SATELLITE ORGANIZATION SUPRANATIONAL 100 MILLION ECU OF 7 1/2 EUROBONDS DUE MAY 11 1998 AT ISSUE PRICE 10145 VIA PARIBAS CAPITAL MARKETS LTD REOFFERED AT 99875 TO YIELD 753 FEES 1 7/8 KAMIGUMI CO JAPAN 300 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MAY 6 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 5/8 COUPON AT PAR VIA NOMURA BANK SWITZERLAND EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM MAY 20 1993 TO APRIL 30 1997 TO BUY COMPANY SHARES FINAL TERMS WILL BE FIXED APRIL 21 FEES 1 5/8 ELECTRICITE DE FRANCE FRANCE 2 BILLION FRENCH FRANCS OF 7 1/2 EUROBONDS DUE MAY 11 2012 AT ISSUE AND REOFFER PRICE 98037 VIA CREDIT COMMERCIAL DE FRANCE YIELD 77 AT REOFFER PRICE SPREAD 33 BASIS POINTS ABOVE EQUIVALENT FRENCH GOVERNMENT BOND FEES 1/2 INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 300 MILLION DUTCH GUILDERS OF 6 5/8 EUROBONDS DUE MAY 14 2003 AT ISSUE PRICE 10085 VIA ABN AMRO BANK NV REOFFERED AT 1001 TO YIELD 661 ANNUAL SPREAD NINE BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES 1 BAYERISCHE VEREINSBANK AG GERMANY 150 BILLION LIRE OF 11 EUROBONDS DUE MAY 14 2003 AT ISSUE PRICE 101475 VIA LEAD UNDERWRITER BANCO DI ROMA THE BONDS ARE OFFERED INITIALLY AT A FIXED PRICE OF 998 TO YIELD 1103 FEES 2 9304160113 930416 NASD FIRM AND INDIVIDUALS ARE DISCIPLINED SEC AFFIRMS 20000 FINE FOR DILLON SECURITIES PRINCIPAL IS FINED 10000 BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ANNOUNCED DISCIPLINARY MEASURES AGAINST ONE FIRM AND A NUMBER OF INDIVIDUALS FOR VIOLATIONS OF SECURITIES LAWS AND INDUSTRY RULES MANY OF THE INDIVIDUALS WERE DISCIPLINED FOR MISAPPROPRIATING CUSTOMER FUNDS DILLON SECURITIES INC SPOKANE WASH WAS FINED 20000 AND PRINCIPAL LYLE R HAAS WAS FINED 10000 THE SECURITIES AND EXCHANGE COMMISSION AFFIRMED THE SANCTIONS FOLLOWING AN APPEAL OF A 1988 RULING THE NASD SAID THE FIRM FAILED TO PREPARE ACCURATE NET CAPITAL COMPUTATIONS AMONG OTHER VIOLATIONS UNLESS OTHERWISE NOTED NONE OF THE PARTIES COULD BE REACHED OR HAD ANY COMMENT KEITH A BERGNER LAKEWOOD COLO WAS FINED 5000 AND BARRED FOR FAILING TO PAY A 31733 NEW YORK STOCK EXCHANGE ARBITRATION AWARD TOMAS BERNARDINO PHILADELPHIA WAS FINED 4965 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE FAILED TO REMIT 993 OF CUSTOMER FUNDS TO HIS FIRM JOHN A ROCHETTO ROCHESTER NY WAS FINED 25000 BARRED AND REQUIRED TO PAY 1000 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE MISAPPROPRIATED THE FUNDS GREGORY DEAN BOYNTON WALNUT CALIF WAS FINED 14283 AND SUSPENDED FOR 10 BUSINESS DAYS JOSEPH R CALLAGHAN BEAVER PA WAS FINED 30000 BARRED AND REQUIRED TO PAY 31000 IN RESTITUTION HE DIDN'T ADMIT OR DENY ALLEGATIONS JEFFERY W CAUDILL MIDLOTHIAN VA WAS FINED 60000 AND BARRED AND REQUIRED TO PAY 24900 IN RESTITUTION AFTER CONVERTING INVESTORS' FUNDS TO HIS OWN USE HE DIDN'T ADMIT OR DENY CHARGES CHARLES R CAVALLARO SEWELL NJ WAS FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE FORGED OR CAUSED TO BE FORGED A CUSTOMER'S SIGNATURE INVOLVING A 25000 CHECK A LOT OF TIMES THERE ARE MITIGATING CIRCUMSTANCES AND I FELT THEY WEREN'T PROPERLY WEIGHED AND EXPLORED SAID MR CAVALLARO THE PROCEDURES ARE SO VAGUE AND CONTRADICTORY AND AT THE SAME TIME YOU'RE SUPPOSED TO COMPLY WITH THEM STANLEY T CONYER LEBANON TENN WAS FINED 20000 AND BARRED AND REQUIRED TO PAY 98239 TO HIS FIRM IN RESTITUITON HE DIDN'T ADMIT OR DENY ALLEGATIONS THAT HE CONVERTED FUNDS TO HIS OWN USE PATRICK JOHN CROMBIE COLUMBUS WIS WAS FINED 42459 AND BARRED HE DIDN'T ADMIT OR DENY ALLEGATIONS THAT HE KEPT CUSTOMER FUNDS FOR HIS OWN USE ALLEN M DENNY GRAND RAPIDS MICH WAS FINED 2500 AND BARRED HE DIDN'T ADMIT OR DENY ALLEGATIONS THAT HE USED 10175 OF CUSTOMER FUNDS FOR HIS OWN USE CHARLES MARK DERRICOTTE LORAIN OHIO AND CLEVELAND CLIFFORD BROOKS SHAKER HEIGHTS OHIO SETTLED WITHOUT ADMITTING OR DENYING CHARGES THAT THEY FAILED TO MAINTAIN REQUIRED MINIMUM NET CAPITAL AT THE FIRM MR DERRICOTTE WAS FINED 7500 AND BARRED AND MR BROOKS WAS FINED 2500 AND SUSPENDED FOR ONE DAY DOUGLAS F DODD LOOKOUT MOUNTAIN GA WAS FINED 15000 AND BARRED HE DIDN'T ADMIT OR DENY FINDINGS THOMAS S FOTI TUCSON ARIZ WAS FINED 5000 AND SUSPENDED FOR ONE BUSINESS DAY PENALTIES THAT WERE AFFIRMED BY THE SEC FOLLOWING AN APPEAL OF A JUNE 1991 DECISION RICHARD JOHN HANSON EDINA MINN WAS FINED 20000 AND BARRED HE DIDN'T ADMIT OR DENY ALLEGATIONS JAMES C HEFFERNAN ALPHARETTA GA WAS BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS LYNNE ALSTROM HOLLERBACH MILL VALLEY CALIF WAS FINED 43000 AND ORDERED TO PAY 23388 IN RESTITUTION TO A MEMBER FIRM AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL S HUGHES SALT LAKE CITY WAS FINED 47000 AND BARRED MR HUGHES DENIED ALLEGATIONS THAT HE MADE SECURITIES TRANSACTIONS WITHOUT PROPERLY REGISTERING AND THAT HE MADE IMPROPER USE OF CERTAIN FUNDS HE SAID SWORN TESTIMONY REFUTES EVERY SINGLE ALLEGATION AND THEY NASD HAD IT IN THEIR POSSESSION AT THE TIME THEY DID THIS KENT EDWARD KARRAS CHICAGO WAS FINED 1000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE HAD IN HIS POSSESSION NOTES AND OTHER MATERIALS WHILE TAKING A SECURITIES EXAMINATION MR KARRAS SAID HE ACCIDENTALLY BROUGHT THE MATERIAL INTO THE TEST ROOM AND NEVER LOOKED AT IT WHILE TAKING THE TEST DOUGLAS W KENDRICK RICHMOND VA WAS FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS PETER K LLOYD ODESSA FLA WAS FINED 10000 AND SUSPENDED FOR 20 DAYS AND BARRED IN ANY PRINCIPAL OR SUPERVISORY CAPACITY THE SEC AFFIRMED THE SANCTIONS FOLLOWING AN APPEAL OF A 1991 DECISION THE NASD SAID HE SOLD SECURITIES TO A CUSTOMER IN A PRIVATE TRANSACTION WITHOUT GIVING HIS FIRM PRIOR WRITTEN NOTICE AND MADE UNSUITABLE INVESTMENT RECOMMENDATIONS TO THE CUSTOMER MR LLOYD SAID THE BRANCH MANAGER OF HIS FIRM VERBALLY NOTIFIED THE BROKERDEALER OF THE TRANSACTION AND HE SAID THE ALLEGED UNSUITABLE INVESTMENT REPRESENTED ONLY 12500 OF THE NEARLY 200000 HE HAD INVESTED FOR HIS CLIENT AND THAT THE BALANCE WAS IN SAFE INVESTMENTS SUCH AS GOVERNMENT SECURITIES JAY RAYMOND LOVITT SHENANDOAH IOWA WAS FINED 5000 BARRED AND REQUIRED TO PAY 58760 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE CONVERTED THE FUNDS TO HIS OWN USE ALBERT M MIKES CLEVELAND WAS FINED 31000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS MARC LLOYD MINKOFF DEERFIELD BEACH FLA WAS FINED 20000 AND SUSPENDED FOR 30 DAYS MR MINKOFF WHO SAID HE IS NO LONGER IN THE SECURITIES BUSINESS SAID NASD'S WHOLE PROCEDURE WAS UNFAIR THEY WERE GOING AFTER ME VICIOUSLY HE SAID THE NASD'S OWN WITNESS WHO WAS ONE OF HIS CLIENTS WAS UNRELIABLE I WOULD HAVE PAID THE 20000 IF THEY ASKED ME BUT I WOULDN'T ACCEPT A CENSURE BECAUSE I FEEL I DID NOTHING WRONG HE SAID JONATHAN GARRETT ORNSTEIN LOS ANGELES WAS FINED 10000 AND SUSPENDED FOR TWO YEARS JOHN M PRZYBYLINSKI LOMBARD ILL WAS FINED 42500 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS KARL F TARBOX WISCASSET MAINE WAS FINED 5000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS WILLIAM G WERLING FINDLAY OHIO WAS FINED 50000 BARRED AND REQUIRED TO PAY 14298 IN RESTITUTION TO HIS MEMBER FIRM WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE MISAPPROPRIATED FUNDS TO HIS OWN USE MARK E WHITE NORTH LITTLE ROCK ARK WAS FINED 5000 AND SUSPENDED FOR ONE WEEK CARL EVERETT YOUNG JR GLENDALE CALIF WAS FINED 3500 JOINTLY AND SEVERALLY WITH A MEMBER FIRM EACH RESPONSIBLE FOR THE AMOUNT AND SUSPENDED FOR 30 DAYS THE SEC AFFIRMED AN APPEAL OF THE CASE STEPHEN RUSSELL BOADT PACIFIC PALISADES CALIF WAS FINED 10000 THE ACTION HAS BEEN APPEALED TO THE SEC THE NASD SAID MR BOADT FAILED TO REQUALIFY AS A PRINCIPAL WITH HIS MEMBER FIRM AFTER A PREVIOUS DISCIPLINARY ACTION MR BOADT CALLED THE FINDING A TECHNICAL VIOLATION THAT DOESN'T INVOLVE THE PUBLIC OR ANY CLIENTS THE PUNISHMENT IS TOTALLY DISPROPORTIONATE TO THE EGREGIOUSNESS OF THE OFFENSE HE SAID ADDING THAT THE NASD ACTION MAY FORCE HIM OUT OF BUSINESS DAVID KIPPINS BROOKLYN NY WAS FINED 10000 DONALD F SPALLETTA SIMLA COLO WAS FINED 10000 AND WILL BE BARRED IF HE FAILS TO PAY A 28257 NEW YORK STOCK EXCHANGE ARBITRATION AWARD MR SPALLETTA SAID THE NASD ACTION RELATED STRICTLY TO AN EMPLOYEE ISSUE BETWEEN HIMSELF AND HIS FORMER EMPLOYER SMITH BARNEY HARRIS UPHAM & CO NO CLIENTS WERE INVOLVED HE SAID ADDING THAT HE HAS PAID THE ARBITRATION CLAIM 9304160112 930416 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY COMPETITION COMMISSIONER KAREL VAN MIERT ENDORSED BREAKING UP NATIONAL TELEPHONE MONOPOLIES BY 1998 TO FREE MARKETS FOR CALLS BOTH WITHIN AND BETWEEN MEMBER STATES THE STANCE IS A RADICAL DEPARTURE FROM EC COMMISSION CAUTION ABOUT PHONE DEREGULATION ONLY LAST OCTOBER THE COMMISSION INDICATED A LIBERALIZATION INITIALLY SHOULD BE LIMITED TO CALLS FROM ONE EC COUNTRY TO ANOTHER BUT PHONE COMPANIES USERS AND REGULATORS ADVISED THE EC THAT BECAUSE INTRASTATE CALLS DOMINATE THE MARKET FEW COMPANIES WOULD COMPETE IF JUST CROSSBORDER CALLS WERE DEREGULATED BRITAIN IS THE ONLY EC MEMBER OPEN TO COMPETITION FOR TELEPHONE CALLS DENMARK WILL FOLLOW SUIT NEXT YEAR THE EC HAS TAKEN STEPS TO LIBERALIZE MARKETS FOR TELEPHONE EQUIPMENT AND DATA PROCESSING BUT PHONE CALLS REPRESENT 80 OF ALL TELECOMMUNICATIONS SALES IN THE 12NATION TRADE BLOC ITALY UNVEILED A PLAN TO CUT TELEPHONE RATES THE MOVE IS INTENDED TO ALIGN THE STATE'S PHONE CHARGES WITH THOSE IN OTHER EUROPEAN NATIONS AND NARROW BIG DIFFERENCES IN ITALIAN RESIDENTIAL AND BUSINESS RATES UNDER THE PLAN RATES WILL DROP AN AVERAGE OF 10 RANGING FROM 75 FOR CITYTOCITY CALLS TO 15 FOR CALLS TO AUSTRALIA 20 TO BRITAIN AND LATIN AMERICA AND 30 TO THE US JAPAN SOUTH KOREA NEW ZEALAND AND SINGAPORE DISCOUNT PROGRAMS WILL BE OFFERED A THIRD OF JAPANESE COMPANIES FAVOR ISOLATING EMPLOYEES INFECTED WITH THE HIV VIRUS THAT CAUSES AIDS A SURVEY FOUND THE YOKOHAMA CHAMBER OF COMMERCE SAID ITS SURVEY WAS THE FIRST ON JAPANESE CORPORATE ATTITUDES ABOUT AIDS OF THE 4200 RESPONDENTS 10 WOULD ENCOURAGE CARRIERS OF THE VIRUS TO RESIGN AND 20 WOULD TRY TO HAVE THEM CONFINED TO A HOSPITAL FIRMS FEAR HIV CARRIERS CAN INFECT OTHER EMPLOYEES AND HURT A COMPANY'S IMAGE THE GOVERNMENT IS WAGING AN ADVERTISING CAMPAIGN TO COMBAT WHAT IT CHARACTERIZES AS WIDESPREAD IGNORANCE IN JAPAN ABOUT AIDS AND ITS CAUSES SOUTH KOREAN BUSINESSES ARE INCREASINGLY CONFIDENT THE ECONOMY WILL RECOVER IN THE SECOND HALF THE CENTRAL BANK'S LATEST BUSINESS SURVEY INDEX OF 2455 COMPANIES JUMPED TO 90 FROM 72 IN THE FIRST QUARTER AND 71 IN THE 1992 FOURTH QUARTER THE 90 READING IS THE HIGHEST SINCE THE 1991 THIRD QUARTER THE GREATER OPTIMISM WAS ATTRIBUTED TO EXPANDED ACTIVITY IN MANUFACTURING INCLUDING AUTOS PETROCHEMICALS CLOTHING AND FURNITURE THE AUTO SECTOR IS EXPECTED TO BE THE STRONGEST PERFORMER IN THE CURRENT QUARTER FOLLOWED BY ELECTRIC AND ELECTRONICS GOODS PURCHASES OF GOLD IN NINE ASIAN COUNTRIES LAST YEAR TOTALED 962 TONS THE WORLD GOLD COUNCIL CITED DYNAMIC ECONOMIC GROWTH IN CHINA HONG KONG INDONESIA JAPAN MALAYSIA SINGAPORE SOUTH KOREA TAIWAN AND THAILAND MALAYSIA LAST YEAR BECAME AN IMPORTANT GOLD CENTER FABRICATING ABOUT 70 TONS OF GOLD JEWELRY FOR EXPORT TO THE ASIAN REGION AND THE MIDEAST AND MALAYSIAN CONSUMERS BOUGHT 163 MILLION GOLD ITEMS VALUED AT 417 BILLION JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY INTRODUCED AN ELECTRIC CAR FOR USE BY SENIOR OFFICIALS AS PART OF THE GOVERNMENT'S EFFORTS TO POPULARIZE NONPOLLUTING VEHICLES BY THE YEAR 2000 THE AUTO EQUIPPED WITH A 28CELL LEAD BATTERY HAS A TOP SPEED OF 53 MILES PER HOUR WHICH ALSO IS THE DISTANCE IT CAN TRAVEL ON A SINGLE CHARGE PREVIOUSLY THE ENVIRONMENT AGENCY BEGAN OPERATING AN ELECTRIC CAR NEW ZEALAND'S ECONOMY RECENTLY ONE OF THE POOREST PERFORMERS IN THE 24MEMBER ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT MAY SET THE PACE FOR THOSE INDUSTRIALIZED STATES THIS YEAR THE GOVERNMENT FORECAST A 3 INCREASE IN 1993 GROSS NATIONAL PRODUCT COMPARED WITH A 22 RISE LAST YEAR AND A 22 CONTRACTION IN 1991 GROWTH IN THE QUARTER ENDED DEC 31 WAS 15 A FASTER PACE THAN EXPECTED AND BROADLY BASED SIGNALING SUSTAINED EXPANSION WITH LOW INFLATION AND INCREASES IN INVESTMENT AND JOBS MANY PRIVATE ANALYSTS AGREED WITH THE GOVERNMENT'S PREDICTION SAYING NEW ZEALAND IS BENEFITING FROM MEASURES IN RECENT YEARS TO STRENGTHEN THE ECONOMY INCLUDING SELLOFFS OF UNPROFITABLE STATE ENTERPRISES REMOVAL OF MANY TARIFFS AND OTHER TRADE BARRIERS AND DECENTRALIZATION OF THE BARGAINING SYSTEM FOR WAGES THOUGH THE REFORMS RESULTED IN A DOUBLING OF THE UNEMPLOYMENT RATE TO 102 AT THE END OF LAST YEAR ANALYSTS EXPECT THE ECONOMIC GROWTH PATTERN THAT EMERGED IN EARLY 1992 TO REVERSE THE JOBLESS TREND ISRAEL AND POLAND WILL JOINTLY ISSUE STAMPS SUNDAY MARKING THE 50TH ANNIVERSARY OF THE WARSAW GHETTO UPRISING AGAINST NAZI GERMAN DEATHCAMP ORDERS IN WORLD WAR II CHINA PUBLISHED A 20VOLUME SET OF BOOKS ABOUT SENIOR LEADER DENG XIAPING'S LIFE AND IDEAS INCLUDING DEVELOPING A MARKET ECONOMY THE COMMUNIST PARTY PREVIOUSLY ISSUED DOZENS OF BOOKS AND MOVIES PRAISING THE RECLUSIVE YET POWERFUL FIGURE NOW 88 YEARS OLD 9304160111 930416 THURSDAY'S MARKETS BOND RALLY PUSHES YIELD TO 16YEAR LOW BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE BOND MARKET RALLY CONTINUED WITH LONGTERM INTEREST RATES HITTING A 16YEAR LOW STOCK PRICES AND THE DOLLAR WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE INCHED UP 028 POINT TO 345592 STANDARD & POOR'S 500STOCK INDEX FELL 026 TO 44840 AND THE NASDAQ COMPOSITE INDEX SLIPPED 362 TO 67032 BOTH THE DOW JONES TRANSPORTATION INDEX AND THE DOW JONES UTILITY INDEX AGAIN SET RECORDS BOND PRICES BEGAN THE DAY ON A WEAK NOTE AFTER THE LABOR DEPARTMENT REPORTED THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE FOR THE WEEK ENDED APRIL 10 FELL 38000 FAR MORE THAN ECONOMISTS' ESTIMATES OF 9000 BUT PRICES REBOUNDED BY MIDAFTERNOON AND PUSHED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND DOWN TO 671 THE LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF 30YEAR BONDS THE BOND RALLY PROVIDED SOME SUPPORT FOR THE STOCK MARKET BUT ANALYSTS SAID CORPORATE EARNINGS REPORTS CONTINUE TO DOMINATE THE MARKET IT'S A SPLIT MARKET A BULL MARKET FOR SOME STOCKS A BEAR MARKET FOR OTHERS SAID ALAN R ACKERMAN MARKET STRATEGIST AT REICH & CO OVERSEAS HONG KONG SHARES SLID 08 ON PROFITTAKING AFTER THE MARKET'S 58 JUMP WEDNESDAY STOCK PRICES IN PARIS SANK 13 AS HOPES FADED THAT INTEREST RATES WOULD BE CUT AGAIN SOON WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 013 TO 10484 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2593 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1016 ISSUES FELL AND 931 ROSE THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16055 MARKS AND 11310 YEN COMPARED WITH 15935 MARKS AND 11388 YEN WEDNESDAY 9304160110 930416 WHO'S NEWS KEOUGH WHO JUST LEFT COKE IS LIKELY TO JOIN ALLEN & CO BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COCACOLA CO'S FRESHLY RETIRED PRESIDENT DONALD R KEOUGH IS EXPECTED TO BE NAMED CHAIRMAN OF ALLEN & CO THE NEW YORKBASED INVESTMENT BANKING FIRM MR KEOUGH 66 YEARS OLD RETIRED FROM COKE YESTERDAY AFTER MORE THAN FOUR DECADES WITH THE SOFTDRINK COMPANY AS THE HANDSON NO 2 OFFICER AT COKE HE HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER SINCE 1981 HE REMAINS AN ADVISER TO COKE'S BOARD ALLEN & CO DIRECTORS ARE EXPECTED TO VOTE ON MR KEOUGH'S APPOINTMENT AS CHAIRMAN AT A BOARD MEETING TODAY AND ANNOUNCE THE DECISION MONDAY ACCORDING TO ENTERTAINMENT AND BEVERAGE INDUSTRY SOURCES IN ATLANTA AND NEW YORK HERBERT A ALLEN WHO IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ALLEN & CO AND ALSO A COKE DIRECTOR WOULDN'T COMMENT MR KEOUGH WAS UNAVAILABLE FOR COMMENT CLOSELY HELD ALLEN & CO WHICH HAS EXTENSIVE ENTERTAINMENT BUSINESS EXPERIENCE CURRENTLY HAS NO CHAIRMAN MR ALLEN AND MR KEOUGH HAVE WORKED TOGETHER FOR YEARS MR ALLEN WAS A DIRECTOR OF COLUMBIA PICTURES ENTERTAINMENT INC WHEN COKE OWNED THE STUDIO IN THE 1980S AND HE INITIALLY SOLD THE STUDIO TO COKE MR ALLEN HAS CLOSE TIES TOO TO MICHAEL OVITZ THE HOLLYWOOD SUPERAGENT WHOSE CREATIVE ARTISTS AGENCY INC BECAME A MEDIA CONSULTANT TO COKE LAST YEAR CREATIVE ARTISTS TOOK A LEAD ROLE IN HELPING DEVELOP THE NEW ALWAYS COCACOLA CLASSIC ADVERTISING CAMPAIGN IT COULDN'T BE DETERMINED PRECISELY WHAT MR KEOUGH'S ROLE AT ALLEN & CO WOULD BE HOWEVER MR KEOUGH'S INTERNATIONAL EXPERIENCE AND CONTACTS ARE AMONG HIS TOP ASSETS AND HE COULD HELP THE FIRM PURSUE BUSINESS OPPORTUNITIES OVERSEAS INDEED PEOPLE WITHIN COCACOLA HAVE SAID FOR MONTHS THAT MR KEOUGH WAS INTERESTED IN A FOREIGN POSTING BUT THE EXECUTIVE PLAYED DOWN TALK ABOUT A POSSIBLE AMBASSADORSHIP IN AN INTERVIEW IN FEBRUARY MR KEOUGH'S DEPARTURE FROM COKE IS A SIGNIFICANT LOSS FOR YEARS AS THE COMPANY'S QUINTESSENTIAL SALESMAN HE HANDLED TOPLEVEL NEGOTIATIONS WITH MAJOR CUSTOMERS LIKE MCDONALD'S CORP AS WELL AS WITH TOPLEVEL FOREIGN DIGNITARIES SMOOTHING THE WAY FOR COKE TO PUSH INTO MARKETS ABROAD AT THE REQUEST OF COCACOLA'S BOARD HE DELAYED HIS RETIREMENT WHICH HAD BEEN SCHEDULED FOR 1991 MR KEOUGH IS WIDELY REGARDED AS A MASTER AT MOTIVATING WORKERS AND COMPANY BOTTLERS AND CAN WORK A CROWD MORE LIKE A POLITICIAN THAN A BUSINESS EXECUTIVE THE RETIREMENT OF THE LONGTIME COKE PRESIDENT HAS OVERSHADOWED ALL ELSE THIS WEEK AT CORPORATE HEADQUARTERS IN ATLANTA IN A TRIBUTE TO MR KEOUGH WHO CHERISHES HIS IRISH ROOTS COMPANY EMPLOYEES HAVE BEEN SPORTING COCACOLA BUTTONS THIS WEEK WITH THE FAMILAR REDANDWHITE LOGO FEATURED IN GREEN 9304160108 930416 TECHNOLOGY PHONE FIRMS OFFER PLAN FOR SPENDING EXTRA 100 BILLION BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SEVEN REGIONAL BELL COMPANIES TOLD VICE PRESIDENT AL GORE THAT THEY WOULD SPEND AN EXTRA 100 BILLION TO BUILD ADVANCED COMMUNICATIONS NETWORKS IF THEY ARE ALLOWED TO OWN CABLETELEVISION SERVICES AND PROVIDE LONGDISTANCE TELEPHONE SERVICE THE BIG PHONE COMPANIES WANT FREEDOM FROM THE 1982 CONSENT DECREE THAT BROKE UP THE BELL SYSTEM AND THEY WANT TO OWN CABLETELEVISION SERVICES THAT COULD BE DELIVERED OVER THEIR TELEPHONE NETWORKS THE 1982 CONSENT DECREE BARS THE BELLS FROM PROVIDING LONGDISTANCE SERVICE AND FROM MANUFACTURING TELECOMMUNICATIONS EQUIPMENT THE 1984 CABLE ACT GENERALLY PROHIBITS PHONE COMPANIES FROM OWNING CABLETV SERVICES WITHIN THEIR TELEPHONESERVICE TERRITORIES THE PHONE COMPANIES SAID THEY WOULD SPEND THE 100 BILLION ON FIBEROPTIC LINES HIGHCAPACITY WIRELESS PHONE SYSTEMS HIGHSPEED DIGITAL SWITCHES DIGITAL COMPRESSION AND OTHER ADVANCED TECHNOLOGIES THEY ESTIMATED THEIR TOTAL NETWORK INVESTMENT COULD REACH 125 BILLION BY 2000 AND 450 BILLION BY 2015 A 100 BILLION INCREASE OVER WHAT THEY PREDICTED THEY WOULD NORMALLY SPEND THE COMPANIES ARE HOPING TO CAPITALIZE ON THE ADMINISTRATION'S VISION OF A NETWORK THAT WOULD PROVIDE EVERY HOME AND BUSINESS WITH INTERACTIVE VIDEO AND DATA SERVICES THE ADMINISTRATION BELIEVES SUCH A NETWORK WOULD IMPROVE HEALTH CARE AND EDUCATIONAL SERVICES AS WELL AS ALLOW MILLIONS OF PEOPLE TO TELECOMMUTE OR WORK FROM HOME BUT THE PHONE COMPANIES FACE SIGNIFICANT OPPOSITION FROM CABLETV COMPANIES LONGDISTANCE CARRIERS AND CONSUMER GROUPS AN AMERICAN TELEPHONE & TELEGRAPH CO SPOKESMAN SAID LOCAL PHONE COMPANIES CURRENTLY ARE MONOPOLIES AND SHOULD FACE SUBSTANTIAL COMPETITION BEFORE THE GOVERNMENT LIFTS RESTRICTIONS AIMED AT PREVENTING ANTICOMPETITIVE BEHAVIOR WE ARE URGING FEDERAL AND STATE REGULATORS TO MOVE AS SWIFTLY AS POSSIBLE TO TEST COMPETITION IN LOCAL TELEPHONE SERVICES HE SAID BUT RIGHT NOW THE PHONE COMPANIES CAN DELIVER MANY SERVICES THROUGH THEIR COPPER NETWORKS WITHOUT MASSIVE INVESTMENTS ROY NEEL MR GORE'S CHIEF OF STAFF SAID THE VICE PRESIDENT HAS AN OPEN MIND ABOUT THE ISSUE OF GRANTING THE BABY BELLS FREEDOM FROM THE BREAKUP DECREE BUT HE ADDED THAT IT IS NOT SOMETHING UNDER ACTIVE CONSIDERATION AT THE WHITE HOUSE ATTENDING YESTERDAY'S MEETING WITH MR GORE WERE RICHARD BROWN VICE CHAIRMAN OF AMERITECH CORP RAYMOND SMITH CHAIRMAN OF BELL ATLANTIC CORP GEORGE HEILMEIER PRESIDENT OF BELLCORE THE BELL COMPANIES' RESEARCH ARM MORTON BAHR PRESIDENT OF THE COMMUNICATIONS WORKERS OF AMERICA JOHN L CLENDENIN CHAIRMAN OF BELLSOUTH CORP IVAN SEIDENBERG VICE CHAIRMAN OF NYNEX CORP PHILIP J QUIGLEY GROUP PRESIDENT BELL COS FOR PACIFIC TELESIS GROUP ROBERT G POPE VICE CHAIRMAN OF SOUTHWESTERN BELL CORP RICHARD D MCCORMICK U S WEST INC CHAIRMAN AND JOHN SODOLSKI PRESIDENT OF THE US TELEPHONE ASSOCIATION 9304160106 930416 SALE OF OCCIDENTAL PETROLEUM UNIT IS LAST IN BROAD SHIFT BY PAULINE YOSHIHASHI AND ERLE NORTON STAFF REPORTERS OF THE WALL STREET JOURNAL LOS ANGELES OCCIDENTAL PETROLEUM CORP SAID IT AGREED TO SELL ITS ISLAND CREEK COAL OPERATIONS TO CONSOL ENERGY INC MARKING THE LAST MAJOR ASSET SALE IN THE OIL COMPANY'S BROAD RESTRUCTURING TERMS WEREN'T DISCLOSED BUT ANALYSTS AND INDUSTRY CONSULTANTS SAID THAT LITTLE CASH WAS LIKELY TO CHANGE HANDS FOR PITTSBURGHBASED CONSOL THE NATION'S SECOND BIGGEST COAL PRODUCER THE ACQUISITION WILL BOOST ITS SUPPLY OF CRUCIAL LOWSULFUR COAL IT ALSO WILL MORE THAN DOUBLE ITS OUTPUT IN VIRGINIA MAKING IT A MARKET LEADER IN AN AREA OUTSIDE NORTHERN APPALACHIA WHERE IT HAS BEEN HISTORICALLY STRONG INDUSTRY OBSERVERS SAID FOR OCCIDENTAL THE SALE IS THE LAST IN A STRING OF MAJOR DIVESTITURES LAUNCHED BY OCCIDENTAL'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE RAY IRANI IN EARLY 1991 FOLLOWING THE DEATH OF THE COMPANY'S LONGTIME CHIEF ARMAND HAMMER THE COAL OPERATIONS HAVE BEEN LOSING MONEY AND THE COMPANY HAD CHIPPED AWAY AT THE ASSETS BY SELLING INTERESTS IN MINES IN CHINA AND WEST VIRGINIA OCCIDENTAL TOOK AN AFTERTAX 600 MILLION NONCASH CHARGE IN THE FOURTH QUARTER TO WRITE DOWN THE COAL OPERATIONS AND PROVIDE FOR LIABILITIES ALTHOUGH AN OCCIDENTAL SPOKESMAN DECLINED TO ELABORATE ON THE SALE'S IMPACT THE TRANSACTION IS NOT EXPECTED TO RESULT IN FURTHER CHARGES AT DEC 31 OCCIDENTAL REPORTED THE COAL UNIT AS A DISCONTINUED OPERATION WITH CURRENT ASSETS OF 109 MILLION NET PROPERTY PLANT AND EQUIPMENT OF 646 MILLION AND OTHER ASSETS OF 30 MILLION CURRENT LIABILITIES WERE REPORTED AT 88 MILLION WITH LONGTERM DEBT AND OTHER LIABILITIES OF 263 MILLION OCCIDENTAL'S STOCK FELL 625 CENTS TO 2225 IN COMPOSITE NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE OPERATIONS INCLUDE MINES IN KENTUCKY VIRGINIA AND WEST VIRGINIA AND REPORTED A 22 MILLION OPERATING LOSS IN 1992 FREDERICK LEUFFER AN ANALYST WITH BEAR STEARNS & CO SAID THE SALE MEANS OCCIDENTAL CAN FINALLY FOCUS ON ITS CORE OIL AND GAS AND CHEMICALS BUSINESSES CONSOL MEANWHILE WILL HAVE A CHALLENGE IN TURNING AROUND ISLAND CREEK'S STRUGGLING OPERATIONS WHICH HAVE BEEN PLAGUED BY HIGH COSTS AND LOW PRODUCTIVITY BUT CONSOL IS CONSIDERED TO BE ONE OF THE BETTER MANAGERS OUT THERE SAID RALPH BARBARO A CONSULTANT WITH ENERGY VENTURES ANALYSIS INC IN ARLINGTON VA THE PURCHASE WILL PUSH CONSOL OWNED BY DU PONT CO AND RHEINBRAUN AG OF GERMANY CLOSER TO INDUSTRY LEADER PEABODY HOLDING CO WHICH LAST YEAR PRODUCED 914 MILLION TONS CONSOL CHURNED OUT 566 MILLION TONS WHILE ISLAND CREEK THE INDUSTRY'S 18TH BIGGEST PRODUCER TURNED OUT 159 MILLION TONS THE TRANSACTION IS SUBJECT TO A REVIEW BY THE FEDERAL TRADE COMMISSION AND THE JUSTICE DEPARTMENT CONSOL EXPECTS IT TO CLOSE BY MIDSUMMER 9304160105 930416 ONCEHOT PHOTOGRAPH MARKET COOLS DOWN CREATING BARGAINS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE ONCE REDHOT PHOTOGRAPHY MARKET IS SUFFERING SEVERE GROWING PAINS AND THAT'S GOOD NEWS FOR SAVVY COLLECTORS IN THE LATE 1980S AS THE ART BOOM WAS LIFTING PRICES OF PAINTINGS A SWELLING CROWD OF MUSEUMS CORPORATIONS AND INDIVIDUALS WHO COULD NO LONGER AFFORD THE BEST PAINTINGS WERE FURIOUSLY SNAPPING UP THE BEST PHOTOGRAPHS PHOTO PRICES LIKE PAINTING PRICES SKYROCKETED THE VERY BEST ONES ROUTINELY CRACKED 50000 A PHENOMENAL AMOUNT GIVEN THE LARGE SUPPLY AND REPRODUCIBILITY OF PHOTOGRAPHS NOW THE PHOTO BOOM HAS SUBSIDED PHOTOGRAPHY'S PRICE RECORD OF 181000 SET LAST YEAR FOR A PHOTO BY RUSSIAN AVANTGARDE ARTIST ALEXANDER RODCHENKO HASN'T BEEN APPROACHED IN SUBSEQUENT AUCTIONS THE HIGH PRICES FOR PHOTOS HAD BROUGHT OUT AN AVALANCHE OF SUPPLY DEPRESSING THE VALUE OF PHOTOGRAPHS RECENTLY SOLD THE SILVER LINING FOR COLLECTORS A SOFT MARKET FOR PHOTOGRAPHY MEANS BARGAINS IN PRINTS OF THE BEST PHOTOGRAPHERS LIKE ANSEL ADAMS AND IN SECTORS THAT EXPERTS BET WILL BE THE HOTTEST OF THE 1990S AT A SERIES OF MAJOR PHOTOGRAPHY AUCTIONS LAST WEEK IN NEW YORK COLLECTORS AND DEALERS RUTHLESSLY ABANDONED THE '80S FADS WHILE ANOINTING THEIR '90S FAVORITES CONSIDER TWO PHOTOGRAPHERS EDWARD S CURTIS AND ARTHUR FELLIG WHO WORKED UNDER THE NAME WEEGEE FEW PHOTOGRAPHERS HAVE BEEN HOTTER IN RECENT YEARS MORE THAN 100 PHOTOGRAPHS BY EACH HIT THE BLOCK AT AUCTION IN THE 19911992 SELLING SEASON CURTIS'S POWERFUL TURNOFTHECENTURY PHOTOGRAPHS WHICH DOCUMENT THE VANISHING WAY OF LIFE OF THE HOPI AND SIOUX INDIAN TRIBES HAVE DOUBLED IN PRICE IN THE LAST FIVE YEARS TO ABOUT 12000 FOR A GOODQUALITY WORK AND AS MUCH AS SIX FIGURES FOR A PORTFOLIO OF HIS PHOTOS WEEGEE WAS A POLICE PHOTOGRAPHER IN NEW YORK IN THE 1950S WHO EARNED HIS NICKNAME BASED ON THE FORTUNETELLING OUIJA BOARD FOR HIS UNCANNY ABILITY TO BE AT THE SCENE OF A CRIME BEFORE IT HAPPENED DEALERS SAY THAT AS RUMORS HIT THE MARKET THAT WEEGEE WAS TO BE THE SUBJECT OF THE 1992 MOVIE THE PUBLIC EYE STARRING JOE PESCI PRICES OF HIS GARISH PHOTOS SOARED TO NEARLY 10000 EACH AND NOW EXPERTS SAY CURTIS PHOTOS ARE LIKELY TO APPRECIATE EVEN FURTHER BECAUSE HIS MARKET IS BROADBASED THE BUYERS INCLUDE NOT ONLY PHOTOGRAPHY COLLECTORS BUT ALSO COLLECTORS OF WESTERN AND NATIVE AMERICAN HISTORICAL MATERIAL BUT THE WEEGEE MARKET HAS CRASHED SAYS JULIE NELSONGAL HEAD OF THE PHOTOGRAPHY DEPARTMENT AT SAN FRANCISCO AUCTION HOUSE BUTTERFIELD & BUTTERFIELD WEEGEE'S POPULARITY BROUGHT A LOT OF WORKS TO MARKET AND THE PRINTS WERE DOGEARED SHE SAID THAT'S HOW HE TREATED HIS WORK AT THE RECENT NEW YORK AUCTIONS MOST OF THE WEEGEE PHOTOS DIDN'T SELL OR SOLD BELOW THEIR ESTIMATED PRICE THOSE AUCTIONS ALSO OFFERED TIPOFFS TO SOME OF THE COMING HOT SECTORS MUCH HIGHER PRICES ARE BEING PAID FOR 19THCENTURY PHOTOGRAPHS AND FOR GENRES ONCE DISMISSED AS THE COMMERCIAL STEPCHILDREN OF THE FIELD FASHION PHOTOGRAPHY AND PARTICULARLY PHOTOJOURNALISM SWANN GALLERIES A NEW YORK AUCTION HOUSE KNOWN FOR ITS SALES OF BOOKS AND PHOTOGRAPHS HELD ITS FIRST SALE OF PHOTOJOURNALISM LAST WEEK A GROUP OF THREE PHOTOS BY LIFE MAGAZINE PHOTOGRAPHER EDDIE ADAMS INCLUDING HIS PULITZER PRIZEWINNING 1968 VIETNAM WAR PHOTO OF A VIETNAMESE MAN ABOUT TO BE EXECUTED SOLD FOR 3450 A HIGH PRICE FOR SUCH A RELATIVELY RECENT WORK ALSO APPRECIATING ARE WORKS BY OLDER SOCIAL REALIST PHOTOGRAPHERS SUCH AS DOROTHEA LANGE WALKER EVANS AND LEWIS HINE WHO DOCUMENTED MIGRANT WORKERS AND UNIONISTS IN PHOTOJOURNALISM PEOPLE BELIEVE WHAT IS STILL OUT THERE IS UNDERVALUED SAYS BETH GATESWARREN HEAD OF THE PHOTOGRAPHY DEPARTMENT OF SOTHEBY'S HOLDINGS INC SIMILARLY THE FASHION PHOTOGRAPHS OF MARTIN MUNKACSI HELMUT NEWTON AND THE LIMITED EDITION PRINTS OF HORST P HORST ALSO SOLD WELL TOGETHER THE RECENT PHOTOGRAPHY SALES AT SWANN SOTHEBY'S AND CHRISTIE'S INTERNATIONAL PLC RAISED 38 MILLION WITH A RESPECTABLE BUT NOT STELLAR 73 OF THE WORKS FINDING BUYERS ACROSS THE BOARD THERE WERE BARGAINS TO BE HAD WITH MOST PHOTOGRAPHS SELLING AT THE LOWER END OF THE AUCTION HOUSES' PRICE ESTIMATES THE SALES INDICATED THAT PRICES ARE STILL HOLDING UP FOR PHOTOGRAPHY OLD MASTERS SUCH AS EDWARD WESTON AND EDWARD STEICHEN BUT THEY ALSO SHOWED THAT IN RETROSPECT COLLECTORS APPARENTLY FEEL THEY PAID TOO MUCH IN THE PAST FOR OFTSEEN ANSEL ADAMS VIEWS OF A RISING MOON THOSE SHOTS HAVE FALLEN IN PRICE TO BETWEEN 10000 AND 12000 FROM AS MUCH AS 20000 THREE YEARS AGO SAYS ROBERT PERSKY EDITOR OF THE PHOTOGRAPH COLLECTOR NEWSLETTER FOR WORKS BY FRENCH SURREALIST MASTER ANDRE KERTESZ BUYERS ARE CHOOSY PAYING A HEFTY 43125 FOR ONE OF HIS BEST AND LEAVING OTHER WORKS MAROONED ON THE AUCTION BLOCK THE MARKET ALSO APPEARS TO BE WEAKENING FOR ANONYMOUS PHOTOS FOR CIVIL WAR PHOTOS FOR THE WORKS OF BILL BRANDT KNOWN FOR HIS NUDES AND MOODY SHOTS OF LONDON IN THE 1930S AND FOR THE WORKS OF THE CONTROVERSIAL ROBERT MAPPLETHORPE WHAT ARE THE MOST VALUABLE AND THUS THE SAFEST AND MOST LIQUID TYPES OF PHOTOGRAPHS A VINTAGE PRINT BY AN IMPORTANT ARTIST AT AN IMPORTANT HISTORICAL POINT THAT'S BEAUTIFUL AND IN GOOD CONDITION SAYS MS NELSONGAL SHE ADDS THAT THE KEY TRENDSETTERS IN THE YOUNG AND RELATIVELY THIN PHOTOGRAPHY MARKET MORE SO THAN IN OTHER ART MARKETS ARE MUSEUMS ANYTHING THAT GOES ON IN THE MUSEUM WORLD HAS IMPACT ON THE MARKET MS NELSONGAL SAYS DEALERS AND AUCTION HOUSE OFFICIALS CITE THE NATIONAL GALLERY OF ART'S EXHIBITION LAST FALL IN WASHINGTON ON THE DEVELOPING TECHNIQUES OF ALFRED STIEGLITZ AS PARTICULARLY INFLUENTIAL IT SHOWED HOW MUCH A PART OF THE ART FORM DEVELOPING A PRINT IS AND IT HAS FURTHER DEPRESSED THE VALUE OF PRINTS NOT DEVELOPED PERSONALLY BY THE PHOTOGRAPHER A MUSEUM EXHIBITION THAT COULD SPUR A SECTOR OF THE MARKET IS THE HIGHLY ACCLAIMED GILMAN PAPER CO'S COLLECTION OF THE FIRST YEARS OF PHOTOGRAPHY THAT RECENTLY OPENED AT THE METROPOLITAN MUSEUM OF ART IN NEW YORK SOTHEBY'S MS GATESWARREN PREDICTS THE EXHAUSTIVE GILMAN EXHIBITION WILL BOOST PRICES FOR WORKS BY 19THCENTURY BRITISH AND FRENCH PHOTOGRAPHERS SUCH AS ROGER FENTON AND GUSTAV LE GRAY AND FOR THE FEW WORKS SURVIVING BY PHOTOGRAPHY'S FATHERS LOUIS DAGUERRE AND HENRY FOX TALBOT AMONG CONTEMPORARY PHOTOGRAPHERS WHOSE WORKS SELL FOR A FEW THOUSAND DOLLARS OR LESS DEALERS AND AUCTION HOUSE EXPERTS SAY THE ONES TO WATCH INCLUDE WILLIAM WEGMAN WHO DRESSES DOGS IN COSTUME FOR STRIKING AND QUIZZICAL PHOTOS ANNIE LIEBOVITZ THE CELEBRITY PHOTOGRAPHER FEATURED IN VANITY FAIR AND ROLLING STONE WHO HAS RECENTLY STARTED LIMITING THE NUMBER OF PHOTOS PRINTED FROM HER NEGATIVES AND JACK PIERSON A CALIFORNIA SCULPTOR AND PHOTOGRAPHER FEATURED IN THIS MONTH'S INFLUENTIAL WHITNEY MUSEUM OF AMERICAN ART BIENNIAL ART SURVEY COMPETITION WAS SO FIERCE AMONG NEW YORK DEALERS TO SIGN MR PIERSON SAYS WHITNEY CURATOR ELISABETH SUSSMAN THAT THE WALL PLAQUES NEXT TO HIS WHITNEY EXHIBITION HAD TO BE CHANGED ON THE EVE OF THE EXHIBITIONS'S OPENING TO REFLECT HIS NEW DEALER 9304160104 930416 LUCENTE NAMED TO KEY DIGITAL EQUIPMENT POST FORMER SENIOR EXECUTIVE AT IBM TO HEAD SALES AND MARKETING EFFORTS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL EQUIPMENT CORP NAMED INDUSTRY VETERAN EDWARD E LUCENTE TO HEAD ITS WORLDWIDE SALES AND MARKETING EFFORTS COMPLETING A SWEEPING OVERHAUL OF THE COMPUTER MAKER'S SENIOR MANAGEMENT RANKS THE NEW POST IS A CRITICAL JOB AT DIGITAL WHICH HAS STRUGGLED TO RECAST ITS SALES FORCE AND SHAPE A CLEAR MARKETING MESSAGE AS IT EMERGES FROM TWO YEARS OF LOSSES AND TURMOIL IN ITS EXECUTIVE RANKS MR LUCENTE 53 YEARS OLD IS A FORMER SENIOR EXECUTIVE AT INTERNATIONAL BUSINESS MACHINES CORP AND WAS UNTIL LAST MONTH THE SECONDRANKING EXECUTIVE AT NORTHERN TELECOM LTD THE BIG TELECOMMUNICATIONS EQUIPMENT MAKER NORTHERN IS CONTROLLED BY BCE INC OF CANADA AT IBM MR LUCENTE WAS AMONG A HANDFUL OF FASTTRACK SENIOR MANAGERS CITED AS POTENTIAL SUCCESSORS TO THENCHIEF EXECUTIVE JOHN AKERS MR LUCENTE RESIGNED IN 1991 TO JOIN NORTHERN ENDING 31 YEARS AT IBM THIS IS A REAL COUP SAID MICHAEL MAYNARD A CONSULTANT WITH INTEGRATED MANAGEMENT RESOURCES INC OF STOW MASS JOHN B JONES OF SALOMON BROTHERS CALLED HIM A VERY TOUGH ROLLUPYOURSLEEVES MANAGER AND THAT IS EXACTLY THE APPROACH DIGITAL NEEDS RIGHT NOW AT IBM ONE ASSIGNMENT MR LUCENTE HAD WAS TO REDEPLOY PEOPLE FROM IBM LABS PLANTS AND OFFICES INTO FIELD SALES AND SERVICE IT WAS A DIFFICULT AND UNPOPULAR TASK IBM INSIDERS SAID AND FAIRLY OR NOT IT WON MR LUCENTE THE SOBRIQUET OF NEUTRON EDDY BECAUSE AFTERWARD THE BUILDINGS REMAINED BUT THE PEOPLE WERE GONE MR LUCENTE TOLD REPORTERS YESTERDAY THAT HE WASN'T INVOLVED IN THE WHOLESALE WORKFORCE REDUCTIONS THAT CAME LATER AT IBM HIS LAST POST WAS THAT OF PRESIDENT OF IBM'S HUGE ASIAPACIFIC OPERATIONS HE SAID THAT THROUGH THE LATE 1980S WHEN DIGITAL WAS POACHING SALES FROM IBM IN THE BOOMING MARKET FOR MIDRANGE COMPUTERS THEIR SALES TEAM GAVE IBM FITS AND I PLAN TO SEE THAT CONTINUE SOME ANALYSTS SAID MR LUCENTE'S DEPARTURE FROM IBM WAS ENGINEERED BY MR AKERS AFTER MR LUCENTE QUESTIONED MR AKERS'S STRATEGY BUT MR LUCENTE SAID SIMPLY THAT HE RESIGNED TO TAKE A GREAT JOB AT NORTHERN TELECOM HE WAS RECRUITED BY PAUL STERN NORTHERN TELECOM'S CHAIRMAN AT THE TIME THEN LEFT AFTER MR STERN RESIGNED AS A SENIOR IBM EXECUTIVE MR LUCENTE'S WOULD OFTEN JOIN SALESMEN ON SALES CALLS TO MAJOR CUSTOMERS AND REGULARLY PHONE INDIVIDUAL SALESMEN IN THE FIELD FOR FEEDBACK FROM THE FRONT LINES RECALLS EDWARD MEZZANOTTE A RETIRED IBM SALESMAN HE CALLED MR LUCENTE DISCIPLINED PROFESSIONAL AND CREATIVE A SALESMAN'S SALESMAN DAVID SMITH OF MARKET RESEARCHER INTERNATIONAL DATA CORP SAID HE EXPECTED MR LUCENTE WOULD CUT 25 OR MORE OF DIGITAL'S CURRENT SALES STAFF AND BRING IN NEW PEOPLE HE ALSO SAID HE WOULD INSTILL A MORE AGGRESSIVE COMMISSIONBASED INCENTIVE PROGRAM THAN THE ONE DIGITAL IS EXPECTED TO PHASE IN BEGINNING JULY 1 DIGITAL ALONE AMONG MAJOR COMPUTER FIRMS HASN'T HAD COMMISSIONBASED COMPENSATION ROBERT B PALMER DIGITAL'S CHIEF EXECUTIVE SAID WEDNESDAY I DON'T THINK I'VE INTERVIEWED SO MANY PEOPLE FOR ANY ONE POSITION IT TOOK A WHILE BUT I'M CONFIDENT THAT WE NOW HAVE THE RIGHT PERSON MR PALMER HAS COMPLETELY RESHAPED MANAGEMENT SINCE HE TOOK THE HELM LAST OCTOBER AFTER DIGITAL'S BOARD REMOVED KENNETH H OLSEN THE FOUNDER AND PRESIDENT IN A STATEMENT MR PALMER SAID MR LUCENTE HAS BEEN HIRED TO REENGINEER DIGITAL'S SALES AND MARKETING SEPARATELY SALOMON BROS UPGRADED DIGITAL STOCK TO BUY FROM HOLD CITING EXPENSE CUTS SALOMON'S MR JONES SAID DIGITAL WILL POST A PROFIT IN THE QUARTER ENDING JUNE 30 ITS FIRST IN TWO YEARS 9304160103 930416 BUSINESS BRIEFS VIACOM INC'S VIACOM INTERNATIONAL INC AGREED TO ACQUIRE SOFTWARE DEVELOPMENT COMPANY ICOM SIMULATIONS INC ICOM WILL BE INTEGRATED INTO VIACOM NEW MEDIA TO DEVELOP PRODUCE DISTRIBUTE AND MARKET INTERACTIVE SOFTWARE SNYDER OIL CORP'S UNIT AGREED TO ACQUIRE A 428 STAKE IN COMMAND PETROLEUM HOLDINGS NL OF AUSTRALIA FOR ABOUT 185 MILLION THE SHARES WILL BE PURCHASED FROM NORMANDY POSEIDON LTD DATA SWITCH CORP RECEIVED A 56 MILLION CONTRACT FROM BDM FEDERAL INC TO SUPPLY SWITCHING AND CHANNEL NETWORKING PRODUCTS WESTAMERICA BANCORP SAID ITS PREVIOULY ANNOUNCED MERGER WITH NAPA VALLEY BANCORP BECAME EFFECTIVE YESTERDAY MORRISON KNUDSEN CORP WAS AWARDED A 30 MILLION THREEYEAR CONTRACT BY THE US ARMY FOR PROJECT MANAGEMENT SERVICES AT ITS REDSTONE ARSENAL NEAR HUNTSVILLE ALA BEAR STEARNS & CO OPENED A REPRESENTATIVE OFFICE IN SHANGHAI CHINA THE SECOND US SECURITIES FIRM TO BE REPRESENTED THERE 9304160101 930416 WHO'S NEWS PEPSICO NAMES PAGES TO HEAD NEW UNIT FOR RESTAURANT OUTLETS PURCHASE NY MAURICIO PAGES 47 YEARS OLD WAS NAMED PRESIDENT OF A NEW UNIT OF PEPSICO INC THAT WILL DEVELOP NONTRADITIONAL RESTAURANT OUTLETS FOR THE COMPANY THE UNIT WILL CONSIST OF PEPSICO'S RESTAURANT COMPANIES KFC PIZZA HUT AND TACO BELL MR PAGES FORMERLY PRESIDENT OF PEPSICOLA CENTRAL WILL BE BASED IN CHICAGO AND REPORT TO THE NEW ORGANIZATION'S BOARD COMPRISING THE RESTAURANT PRESIDENTS JOHN CRANOR ALLAN HUSTON AND JOHN MARTIN PEPSICO SAID MR PAGES WOULD BE RESPONSIBLE FOR BUILDING A COHESIVE PROGRAM TO INITIALLY SELL AND EVENTUALLY SERVICE COMBINATIONS OF PEPSICO'S RESTAURANT BRANDS AS WELL AS SNACKS AND BEVERAGES IN SUPERMARKETS CONVENIENCE STORES SCHOOLS AND OTHER LOCATIONS PEPSICO'S RESTAURANT DIVISIONS HAVE ALREADY BEGUN DEVELOPING SUCH OUTLETS CREATING A UNIT TO OVERSEE THE OUTLETS WILL HELP FURTHER THEIR EXPANSION THE COMPANY SAID 9304160100 930416 FINANCING BUSINESS SYNOPTICS COMMUNICATIONS INC SYNOPTICS COMMUNICATIONS INC SANTA CLARA CALIF SAID IT PLANS A PRIVATE PLACEMENT OF 100 MILLION IN CONVERTIBLE SUBORDINATED DEBENTURES WHICH WOULD CONVERT INTO 800000 SHARES OF THE COMPUTER NETWORKING COMPANY'S COMMON STOCK AT THE STOCK'S CURRENT PRICE 9304160099 930416 DIVIDEND NEWS IMC FERTILIZER GROUP SUSPENDS DIVIDEND CITING LARGE CHARGE NORTHBROOK ILL IMC FERTILIZER GROUP INC SUSPENDED ITS 27 CENT DIVIDEND FOR THE FOURTH QUARTER ENDING JUNE 30 CITING A PREVIOUSLY ANNOUNCED CHARGE OF 1085 MILLION OR 491 A SHARE IN THE PREVIOUS QUARTER TO SETTLE A LAWSUIT AND PLUNGING FERTILIZER PRICES INCLUDING THE CHARGE IMC REPORTED A LOSS FOR THE THIRD QUARTER ENDED MARCH 31 OF 1137 MILLION OR 515 A SHARE THE CHARGE IS PART OF A 180 MILLION SETTLEMENT OF A LAWSUIT TO BE PAID OVER THREE YEARS LINKED TO A 1991 NITROPARAFFIN PLANT EXPLOSION IN STERLINGTON LA THAT KILLED EIGHT WORKERS AND INJURED 120 OTHERS THE PAYMENTS ARE BEING MADE TO ANGUS CHEMICAL CO A UNIT OF ALBERTA NATURAL GAS CO AND ITS INSURER IMC HAD PREVIOUSLY SOLD THE PLANT WHERE THE EXPLOSION OCCURRED TO ANGUS BUT OPERATED IT UNDER A MANAGEMENT PACT IN THE YEAREARLIER THIRD QUARTER THE FERTILIZER CONCERN REPORTED NET INCOME OF 385 MILLION OR 174 A SHARE WHICH INCLUDED A GAIN OF 182 MILLION OR 82 CENTS A SHARE FROM THE SALE OF IMC'S AMMONIA PLANT IN STERLINGTON SUSPENDING THE DIVIDEND WHICH SAVES IMC ABOUT 6 MILLION IN THE CURRENT QUARTER RAISED A CAUTION FLAG WITH INVESTORS ANALYSTS SAID IMC SHARES WERE QUOTED AT 35 DOWN 125 IN LATE NEW YORK STOCK EXCHANGE TRADING DAVID NELSON AN ANALYST WITH THE WASHINGTON ANALYSIS CORP UNIT OF COUNTY NATWEST SECURITIES SAID SUSPENDING THE DIVIDEND SHOWS PRUDENCE BUT IT ALSO SHOWS A LACK OF CONFIDENCE IN OPERATING CONDITIONS GOING FORWARD WITH EXPORT ORDERS FROM REGULAR CUSTOMERS SUCH AS INDIA AND CHINA HAVING DRIED UP OVER THE PAST SEVERAL MONTHS CERTAIN PHOSPHATE FERTILIZER PRICES ARE AT 20YEAR LOWS AND NEAR IMC'S COST OF PRODUCTION HE SAID MR NELSON NOTED THAT IMC STOCK HAD GAINED GROUND OVER THE PAST FEW WEEKS ON RUMORS THAT A MAJOR INDIAN FERTILIZER IMPORTER WAS GOING TO PLACE A SUBSTANTIAL ORDER FOR DIAMMONIUM PHOSPHATE OR DAP FERTILIZER WITH IMC AND THAT RUSSIA MIGHT HALT EXPORTING DAP TO THE US SO FAR NEITHER RUMOR HAS BEEN SUBSTANTIATED WENDELL F BUECHE IMC PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID BY SETTLING THE LAWSUIT WE OVERCAME A MAJOR IMPEDIMENT TO PROCEEDING WITH OUR OPERATING STRATEGIES BUT HE ADDED THAT THE SETTLEMENT COUPLED WITH CONTINUED WEAKNESS IN FERTILIZER PRICES MADE IT NECESSARY TO SUSPEND THE DIVIDEND 9304160098 930416 BERLIN WRESTLES WITH OLYMPICS PURSUIT QUESTIONS CONSEQUENCES GLORY OR DEBT BY GEOFFREY SMITH SPECIAL TO THE WALL STREET JOURNAL BERLIN LANDING THE 2000 OLYMPIC GAMES MIGHT RECAPTURE SOME OF BERLIN'S FORMER GLORY AND SPEED ECONOMIC RECOVERY BUT THE CAMPAIGN IS DIVIDING THE CITY AS RADICALLY AS THE WALL EVER DID POLITICIANS COMMENTATORS AND ORDINARY FOLK ARE BICKERING OVER WHETHER THE WORLD'S BIGGEST ATHLETIC EXTRAVAGANZA IS MORE LIKELY TO GALVANIZE THE CITY'S REGENERATION OR DELAY IT GERMANY'S MOST PROMINENT LOBBYISTS FOR THE GAMES CHANCELLOR HELMUT KOHL AND BERLIN MAYOR EBERHARD DIEPGEN EMPHASIZE ANALOGIES TO FREEDOM AND NEW BEGINNINGS WHEN PROMOTING BERLIN'S SYMBOLIC VALUE THE OLYMPICS HERE MR KOHL PROMISES WOULD BE A MAGNIFICENT CHANCE TO PRESENT THE NEWLY REUNITED GERMANY TO ALL THE WORLD WITH THE NECESSARY DEGREE OF MODESTY AND DIGNITY PREDICTABLY BERLIN'S LEFTIST COMMUNITY IS PLANNING MORE PROTEST MARCHES AND DEMONSTRATIONS AGAINST THE GAMES WHEN OFFICIALS FROM THE INTERNATIONAL OLYMPIC COMMITTEE ARRIVE HERE TOMORROW THEY'LL BE GREETED BY MORE THAN FAWNING CITY ELDERS THE VOCAL NO OLYMPICS MOVEMENT PLANS A DEMONSTRATION FOR THE SAME DAY WHEN THOUSANDS ARE EXPECTED ON THE STREETS TO PROTEST BRINGING THE GAMES TO BERLIN IMAGES COULD BE IMPORTANT IN THE TIGHT RACE FOR THE 2000 GAMES BERLIN ENTERED THE RUNNING LATE AND ITS CHANCES ARE DEEMED ABOUT EQUAL WITH MANCHESTER ENGLAND IN A THIRDPLACE TIE THE TOP CANDIDATES ARE CONSIDERED TO BE SYDNEY AUSTRALIA AND BEIJING IN BEIJING WHERE DEMONSTRATIONS ARE DISCOURAGED COMMUNIST LEADERS LAST MONTH REPORTEDLY ORDERED ENTIRE FACTORIES SHUT AND CURBED DELIVERIES OF HEATING FUEL SO THE CITY COULD MEASURE UP TO OLYMPIC AIRQUALITY STANDARDS BY CONTRAST RECENT BERLIN POLLS SUGGEST THAT ABOUT 46 OF THE CITY'S 33 MILLION RESIDENTS OPPOSE HAVING THE GAMES THE CITY IS OVERSTRETCHED WE DON'T HAVE THE TIME OR CAPABILITY TO PREPARE FOR THE OLYMPICS AT PRESENT LET ALONE THE MONEY SAYS STEFAN NOE A SPOKESMAN FOR THE ENVIRONMENTALIST GREENS/ALLIANCE 90 PARTY WHICH IS LEADING OPPOSITION TO THE GAMES IT'S PURE SCHIZOPHRENIA ADDS MARKUS RUGPAUL A 22YEAROLD STUDENT THEY ASK EVERYONE ELSE TO SAVE AND THEN SPEND THOUSANDS ENTERTAINING DELEGATIONS FROM THE IOC BERLIN 2000 OLYMPIA GMBH THE PRIVATE COMPANY RESPONSIBLE FOR PRESENTING THE CITY'S BID TO THE IOC ASSERTS THAT OPPONENTS ARE MISLED ROUGHLY 70 OF THE INVESTMENTS PLANNED ARE NECESSARY EVEN WITHOUT THE GAMES THUS THEY CANNOT BE CALCULATED AS OLYMPICRELATED COSTS THE COMPANY ARGUES GENERALLY ACKNOWLEDGED IS THE FACT THAT THE GAMES WOULD BRING THE CITY CAPITAL INVESTMENT PROGRAMS VALUED AT OVER 112 BILLION MARKS 7 BILLION ESTIMATED TO PROVIDE THE CITY WITH BADLY NEEDED NEW JOBS OF THE TOTAL COSTS PRIVATE INVESTORS ARE EXPECTED TO RAISE 33 BILLION MARKS TO PAY THE COSTS OF THE GAMES THEMSELVES ANOTHER 69 BILLION MARKS TO BE SHARED BY PRIVATE AND PUBLIC SECTORS WILL BE SPENT ON NEW CONSTRUCTION OF HOUSING ROADS AND SPORTS FACILITIES THE NATURE OF THE BUILDING PROJECTS MEANS THAT THE GAMES ARE WORTH A LOT MORE TO THE CITY WHEN YOU CONSIDER THE REVENUES TO BE HAD FROM THE FACILITIES AFTER THE OLYMPICS SAYS WOLFGANG HAENDEL HEAD OF BERLIN 2000 OLYMPIA'S SEPARATE MARKETING COMPANY SPECIFICALLY HE POINTS TO THE PLANNED OLYMPIC VILLAGE AND THE 12000 APARTMENTS WHICH WOULD EASE THE CITY'S CHRONIC HOUSING PROBLEMS ONCE THE ATHLETES RETURN HOME HE ALSO EMPHASIZES THE OLYMPICS'S POTENTIAL TO CONTRIBUTE TO THE REDEVELOPMENT OF THE CITY'S WALLRAVAGED CENTER THE SPACE WHERE THE WALL USED TO BE CAN BE USED IN ANY NUMBER OF WAYS MR HAENDEL ASSERTS WE ARE GOING TO INTEGRATE THE FACILITIES INTO THE COMMUNITY NOT BUILD SOME MASSIVE PARK OUT OF TOWN WHICH BECOMES AN OLYMPIC MEMORIAL AFTERWARDS ONE CASE IN POINT IS THE SPORTS HALL DESIGNATED TO HOST THE GYMNASTICS VOLLEYBALL AND BASKETBALL TOURNAMENTS THE HALL IS BUILT ALONG THE CHAUSSEE ALLEE IN CENTRAL BERLIN WHICH WAS AN ELEGANT BOULEVARD UNTIL THE WALL TURNED IT INTO A CULDESAC IN 1961 TO ENSURE THE FINANCING OF THE HALL A CONSORTIUM OF GERMAN AND SWEDISH DEVELOPERS OBTAINED PLANNING PERMISSION FOR A MIXEDUSE OFFICE AND RESIDENTIAL DEVELOPMENT ON A NEIGHBORING SITE PROFITS FROM THE LATTER ARE INTENDED TO ENSURE THAT NO PUBLIC MONEY NEEDS TO BE TIED UP IN THE SPORTS HALL THE ENVIRONMENTALIST GREENS HOWEVER DOUBT THAT THE BENEFITS TO THE TOWN WILL BE AS TANGIBLE AS PROMISED LOOK AT BARCELONA THE APARTMENTS THEY BUILT THERE ARE NOW IN PRIVATE HANDS AND ARE BEING LET AT HORRENDOUS PRICES THAT ISN'T THE SOLUTION TO BERLIN'S HOUSING PROBLEM SAYS MR NOE HE COULD ALSO POINT OUT THAT WHILE THE IOC MADE A TIDY PROFIT ON THE 1992 GAMES BARCELONA ITSELF RECENTLY HAD TO RESCHEDULE REPAYMENTS ON 21 BILLION OF OLYMPICSINDUCED DEBT WITH ANOTHER 4 BILLION CURRENTLY BEING PAID OFF BY THE SPANISH GOVERNMENT SAYS LUCA CECCOLINI AN EXECUTIVE WITH THE TELEVISION UNIT OF INTERNATIONAL MANAGEMENT GROUP A U S SPORTS PROMOTER THE OLYMPICS ARE A GREAT WAY TO REBUILD YOUR CITY BUT DON'T EXPECT TO MAKE ANY MONEY OUT OF IT BERLIN 2000 OLYMPIA INSISTS THAT BERLIN LIKE LOS ANGELES AND ATLANTA WILL BE ABLE TO FINANCE THE GAMES FROM THE PRIVATE SECTOR POINTING OUT THAT OVER 30 MILLION MARKS HAS BEEN RAISED IN SPONSORSHIP FOR THE BID ALONE FROM 30 OF GERMANY'S BIGGEST COMPANIES INCLUDING DAIMLERBENZ AG SIEMENS AG AND BERTELSMANN AG BUT IF MARKET PRINCIPLES SHOULD MANAGE TO KEEP COSTS DOWN THEY HAVE THE POTENTIAL TO CAUSE TROUBLE IN OTHER WAYS THE ALREADY LUKEWARM SUPPORT FOR THE GAMES AMONG BERLINERS IS SURE TO BE ERODED IF THE PROMISED 7000 JOBS GO TO CHEAPER LABOR FROM EASTERN EUROPE AND ANTAGONISM TOWARD MIGRANT WORKERS IS THE LAST THING BERLIN CAN AFFORD UNDOUBTEDLY BERLIN'S NIGHTMARE SCENARIO WOULD BE FOR SUCH TENSIONS TO RESURRECT ASSOCIATIONS WITH THE 1936 GAMES HOSTED BY ADOLF HITLER IN THE SAME MAGNIFICENT STADIUM AS A DEMONSTRATION OF ARYAN SUPERIORITY JESSE OWENS'S FEATS NOTWITHSTANDING A GOLD MEDAL WINNER MR OWENS AN AFICANAMERICAN TRACK STAR SET WORLD RECORDS IN 1936 THAT ROCKED HITLER'S THEORIES THAT PARTICULAR LEGACY HOWEVER DOESN'T SEEM TO HAVE AFFECTED PUBLIC OPINION FOR THE MOMENT MOST GERMANS ALIVE NOW NEVER EVEN LIVED IN HITLER'S GERMANY ONE HAS TO DEAL WITH THE PAST NATURALLY AND HERE THAT MEANS ENSURING THE 2000 GAMES GIVE A FAIR REFLECTION OF A DEMOCRATIC GERMANY OBSERVES MR HAENDEL 9304160097 930416 WHO'S NEWS TSI CORP'S CEO QUITS AS CONCERN FORECASTS A LOSS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL TSI CORP SAID ITS CHIEF EXECUTIVE OFFICER RESIGNED AND ANNOUNCED IT WILL REPORT A LOSS OF 26 MILLION AFTER RESTRUCTURING CHARGES OF 21 MILLION FOR ITS FISCAL THIRD QUARTER ENDED MARCH 28 JAMES P SHERBLOM CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE WORCESTER MASS COMPANY RESIGNED EFFECTIVE IMMEDIATELY THE COMPANY SAID HE WILL REMAIN A DIRECTOR AND VICE CHAIRMAN MR SHERBLOM SAID IN AN INTERVIEW THAT HE HAD HAD SOME DIFFERENCES OF OPINION WITH TSI'S BOARD BUT HAD RESIGNED VOLUNTARILY BECAUSE IT WAS CLEAR TO ALL OF US THAT I WASN'T THE RIGHT PERSON TO TAKE US THROUGH THE COMPANY'S NEXT PHASE TSI OFFERS ANIMAL TESTING AND RELATED SERVICES TO THE BIOMEDICAL INDUSTRY AND HAS BEEN ONE OF THE LARGEST PLAYERS IN THIS FASTGROWING NICHE THE COMPANY SAID ROBERT W BALDRIDGE A TSI DIRECTOR AFFILIATED WITH THE INVESTMENT BANKING FIRM DOWNER & CO WAS NAMED CHAIRMAN OF TSI'S BOARD AND OF THE BOARD'S EXECUTIVE COMMITTEE WHICH WILL OVERSEE THE COMPANY'S OPERATIONS PENDING THE APPOINTMENT OF A NEW CHIEF EXECUTIVE OFFICER UNDER MR SHERBLOM THE COMPANY EMBARKED ON AN AGGRESSIVE GROWTH STRATEGY BASED ON ACQUISITIONS SINCE 1990 TSI HAS ACQUIRED EIGHT COMPANIES THE STRATEGY RESULTED IN A SERIES OF LOSSES BUT MR SHERBLOM GAMBLED THAT SYNERGIES AMONG TSI'S RAPIDLY EXPANDING PORTFOLIO OF TESTING FACILITIES WOULD MAKE IT A PROFITABLE DOMINANT PLAYER IN CONTRACT TESTING TSI HOWEVER HAS BEEN HURT BY STIFF COMPETITION PRICING PRESSURES AND SLUGGISH DEMAND THIS IS A BUSINESS THAT DEMANDS RUNNING FACILITIES AS EFFICIENTLY AS YOU CAN IN ORDER TO KEEP PRICES LOW SAID JOYCE LONERGAN AN ANALYST WITH COWEN & CO THAT REQUIRES VERY INTEGRATED OPERATIONS TSI BOUGHT SOME THINGS TOO QUICKLY AND DIDN'T INTEGRATE THEM FAST ENOUGH LAST MONTH TSI SAID IT EXPECTED TO REPORT A LOSS OF ABOUT 12 MILLION FOR ITS THIRD QUARTER AND A REVENUE DECLINE OF ABOUT 15 THE COMPANY ALSO SAID IT PLANNED TO CUT ITS STAFF BY 10 TSI SAID ITS EXPECTED QUARTERLY LOSS HAD MORE THAN DOUBLED EQUAL TO 124 A SHARE THE RESTRUCTURING CHARGES FOR THE QUARTER WILL INCLUDE COSTS ASSOCIATED WITH THE SALE OR CLOSURE OF CERTAIN DIVISIONS TSI SAID FOR THE YEAREARLIER THIRD QUARTER THE COMPANY HAD A LOSS OF 965000 OR FIVE CENTS A SHARE ON REVENUE OF 81 MILLION TSI OFFICIALS DECLINED TO ELABORATE ON WHICH DIVISIONS THEY PLAN TO SELL OR CLOSE IN A SIGN THAT FURTHER STAFF REDUCTIONS MAY LIE AHEAD MR SHERBLOM SAID TSI'S WORK FORCE AFTER PLANNED RESTRUCTURINGS IS EXPECTED TO BE BETWEEN 500 AND 600 EMPLOYEES COMPARED WITH 730 AT THE END OF 1992 IN LATE OVERTHECOUNTER TRADING YESTERDAY TSI SHARES FELL 50 CENTS TO 150 9304160096 930416 CORPORATE FOCUS WALMART'S CHALLENGE SLOWING BUSINESS ANGRY UNIONS COMPETITION IN THE NORTHEAST THRUSTS NEW PROBLEMS ON AGGRESSIVE RETAILER BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL IS WALMART COMING BACK TO EARTH THE NATION'S LARGEST RETAILER CERTAINLY ISN'T FLYING AS HIGH AS USUAL ON WALL STREET THESE DAYS IN RECENT WEEKS WALMART STORES INC SHARES HAVE PLUNGED 20 AN UNPRECEDENTED DECLINE FOR A STOCK THAT HAS RISEN AS REGULARLY AS THE MORNING SUN IN RECENT YEARS THANKS TO THE COMPANY'S STUNNING GROWTH ON WEDNESDAY WALMART CONFIRMED IN A MEETING WITH ANALYSTS THAT SALES GROWTH FOR STORES OPEN MORE THAN A YEAR IS LIKELY TO SLIP INTO THE 7TO8 RANGE THIS YEAR THE FIRST TIME IT'S BEEN BELOW 10 IN EIGHT YEARS ANALYSTS ARE CONCERNED ABOUT BOTH THE SLOWDOWN IN THE INCREASINGLY CROWDED WAREHOUSE CLUB BUSINESS WHERE WALMART IS THE BIGGEST PLAYER AND THE COMPANY'S CONTINUING MOVE FROM ITS ROOTS IN SOUTHERN AND MIDWESTERN SMALL TOWNS TO THE MORE COMPETITIVE AND COSTLY NORTHEAST WARNING BELLS ARE ALSO SOUNDING ABOUT WALMART'S SUPERCENTERS MASSIVE COMBINATION GENERAL MERCHANDISE AND FULLSIZE GROCERY STORES IN THE GROCERIES WALMART IS FINDING MUCH MORE RESILIENT RIVALS THAN IT DID IN GENERAL RETAILING WHERE ITS BUYING CLOUT AND EFFICIENCY ROUTINELY DROVE SMALLER COMPETITORS OUT OF BUSINESS MOREOVER THE NONUNION WALMART STORES ARE FACING AGGRESSIVE MOVES BY UNIONS REPRESENTING SUPERMARKET WORKERS THAT ARE DELAYING AND IN SOME CASES KILLING EXPANSION OPPORTUNITIES IN PARAMUS NJ AND TWO OTHER NORTHEASTERN TOWNS FOR EXAMPLE A UNION CONVINCED LOCAL POLITICIANS TO DENY WALMART ZONING VARIANCES IT NEEDED TO BUILD STORES AND IN WASHINGTON MEMBERS OF UFCW LOCAL 400 AGREED IN THE FALL TO DOUBLE THEIR DUES FOR 13 WEEKS TO BUILD A 2 MILLION WAR CHEST TO FIGHT ENTRY INTO THAT MARKET BY WALMART FOOD LION AND OTHER NONUNION CHAINS NOT THAT ANYONE IS WRITING WALMART'S OBITUARY SOME ANALYSTS SAY THE COMPANY IS SIMPLY SUFFERING FROM THE HIGH EXPECTATIONS ITS STELLAR PERFORMANCE OVER THE YEARS HAS CREATED EVEN THOSE WHO HAVE BEEN SHAVING EARNINGS ESTIMATES STILL SEE CONSIDERABLE GROWTH IN WALMART'S VALUEDRIVEN FORMATS L WAYNE HOOD OF PRUDENTIAL SECURITIES ONE OF SEVERAL ANALYSTS WHOSE REPORTS TRIGGERED THE RECENT SLIDE STILL BELIEVES WALMART CAN CONTINUE TO GROW FAR FASTER THAN THE AVERAGE RETAILER THEY SEE ENOUGH OPPORTUNITY AT LEAST FOR THE NEXT FIVE YEARS HE SAYS EXECUTIVES OF THE COMPANY BASED IN BENTONVILLE ARK DIDN'T RESPOND TO REQUESTS FOR AN INTERVIEW WALMART SEES MAJOR GROWTH POSSIBILITIES IN CALIFORNIA IT IS ALSO BULLISH ON ITS SUPERCENTERS WHICH ARE SEEKING A HEALTHY SLICE OF THE NEARLY 400BILLIONAYEAR GROCERY MARKET WALMART HAS OPENED 38 SUCH ESTABLISHMENTS TO DATE AND IT TOLD ANALYSTS IT MIGHT OPEN 50 MORE BY YEAR'S END WELL AHEAD OF EARLIER PROJECTIONS ANALYSTS SAY THE COMPANY MAY OPEN AS MANY AS 250 MORE OVER THE NEXT THREE YEARS HAVING LEARNED FROM THE RECENT FAILURE OF ITS ARENASIZED HYPERMARTS WALMART IS MAKING ITS SUPERCENTERS A THIRD SMALLER AND IS RELYING LESS ON THE FOOD SIDE IN THE HYPERMARTS 70 OF THE BUSINESS WAS ON THE FOOD SIDE SAYS PRUDENTIAL'S MR HOOD MANAGING AND SUPPLYING THE CAVERNOUS FOOD OPERATIONS PARTICULARLY PERISHABLE PRODUCE PROVED TO BE AN OPERATIONAL AND LOGISTICAL NIGHTMARE HE ADDS BY CONTRAST WALMART EXPECTS ONLY A THIRD OF THE SUPERCENTERS' BUSINESS TO COME FROM FOOD ANALYSTS SAY WHILE FOOD WILL LURE TRAFFIC ANALYSTS SAY MUCH OF THE PROFIT IS EXPECTED TO COME FROM GENERAL MERCHANDISE MEANWHILE WALMART IS FINDING WAYS TO SQUEEZE EXTRA PENNIES OUT OF COSTS AND INTO PROFIT MARGINS WITH THREE NEW DISTRIBUTION CENTERS BEING READIED IT PLANS TO SHAVE COSTS BY TAKING ITS FOOD DISTRIBUTION AND PRODUCE BUYING INHOUSE FURTHERMORE WALMART TOLD ANALYSTS THIS WEEK IT WILL ROLL OUT ABOUT 450 PRODUCTS IN 1993 AS PART OF ITS PRIVATELABEL PROGRAM 100 MORE THAN PREVIOUSLY PROJECTED THE MOVE TO PRIVATELABEL GOODS IS EXPECTED TO BOOST PROFIT MARGINS BUT TO SATISFY WALL STREET'S HUNGER FOR GROWTH WALMART MUST CONTINUE TO EXPAND AND THAT HAS BECOME MORE AND MORE DIFFICULT IN THE POSTSAM WALTON ERA MR WALTON THE COMPANY'S LEGENDARY FOUNDER WHO DIED LAST YEAR THRIVED ON PICKING OFF THE SMALL AND THE WEAK IN SMALL TOWNS ACROSS THE SOUTH AND MIDWEST IN LESS THAN 30 YEARS THE COMPANY GREW FROM A ONESTORE OPERATION TO BECOME THE NATION'S LARGEST RETAILER BUT NOW WALMART IS GRAPPLING WITH TOO MUCH COMPETITION IN MAJOR CITIES WHERE EVERYTHING FROM LAND TO LABOR TO ADVERTISING COSTS MORE OF LATE ANALYSTS HAVE FOCUSED ON THE WAREHOUSE CLUB BUSINESS WHERE MAJOR COMPETITORS ARE NOW IN HEADTOHEAD COMPETITION AS A RESULT OF INTENSIFIED COMPETITION AND BAD WEATHER THAT DAMPED RETAIL SALES THROUGHOUT THE INDUSTRY SAMESTORE SALES AT ITS SAM'S CLUB STORES WHICH ACCOUNT FOR 23 OF WALMART'S REVENUE DROPPED 1 IN FEBRUARY AND 3 IN MARCH ONE SHOULD HAVE BEEN WORRIED ABOUT THIS A YEAR AGO SAYS JEFF EDELMAN AN ANALYST AT CJ LAWRENCE THE SIGNS WERE CLEARLY EVIDENT WALMART FACES STIFF COMPETITION IN THE GROCERY BUSINESS TOO UNLIKE GENERAL MERCHANDISE RETAILERS WALMART IS FINDING GROCERY STORES ARE VERY COMPETITIVE VERY GOOD COSTCONTROLLERS USED TO VERY THIN MARGINS SAYS ANALYST DON SPINDEL AT AG EDWARDS EVEN SMALL GROCERY OPERATORS BELONG TO COOPERATIVES OR ARE SERVED BY LARGE WHOLESALERS WHO GIVE THEM COMPETITIVE PURCHASING POWER AND MARKETING ADVICE AND BIG CHAINS SUCH AS KROGER AND SAFEWAY ARE FIRMLY ENTRENCHED IN MANY SMALL TOWNS AND HAVE ALREADY LAUNCHED EFFORTS TO CUT COSTS EVEN IN MARKETS WHERE THE SUPERCENTERS HAVEN'T YET ARRIVED WALMART'S MOVE INTO THE GROCERY BUSINESS IS DRAWING PARTICULAR FIRE FROM UNIONS PARTICULARLY THE 13 MILLIONMEMBER UFCW IN MOST STATES IN THE NORTHEAST UNIONS HAVE HELPED ORGANIZE OTHER GROUPS OPPOSING WALMART WHETHER THEY BE SMALL MERCHANTS FEARING COMPETITION OR PRESERVATIONISTS FEELING THAT QUAINT DOWNTOWNS WILL BE HURT BY THE COMPETITION WHILE THE UNIONS CONCEDE THAT ORGANIZING THE FIERCELY ANTIUNION WALMART ISN'T LIKELY NOW THE WEAKNESS IN WALMART STOCK SHOULD IT CONTINUE COULD PROVIDE AN OPENING ALTHOUGH WALMART IS NOTORIOUS FOR ITS LOW WAGES THE COMPANY HAS WON THE LOYALTY OF ITS ASSOCIATES AS ITS WORKERS ARE KNOWN WITH GENEROUS AWARDS OF WALMART STOCK THE STRATOSPHERIC GAINS THAT STOCK ENJOYED OVER THE YEARS HAVE MEANT THAT EVEN AFTER 25 YEARS AT 7 AN HOUR A WALMART WORKER COULD RETIRE ON A 250000 NEST EGG AND MANY HAVE AS THE COMPANY REMINDS EMPLOYEES IN ITS NEWSLETTERS IF THE CURRENT SKID CONTINUES THOUGH THE SIREN CALL OF WALMART STOCK MAY DIM MAKING UNION PROMISES OF HIGHER WAGES AND BENEFITS MORE ATTRACTIVE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WALMART STOCK CLOSED AT 27625 UP 375 CENTS MEANWHILE THE NATIONAL UFCW PLANS ANOTHER CAMPAIGN CHARGING WALMART WITH SELLING GOODS MADE BY CHILD LABOR TO BE UNVEILED ON MOTHER'S DAY 9304160095 930416 GEORGIAPACIFIC AGREES TO PROVIDE WOODPECKER SHIELD BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A MAJOR TIMBER INDUSTRY CONCERN OPTED OUT OF FUTURE LEGAL LOGJAMS BY VOLUNTEERING TO PROTECT THE REDCOCKADED WOODPECKER LIVING ON ITS LAND GEORGIAPACIFIC CORP BASED IN ATLANTA BECAME THE FIRST BUSINESS TO COMMIT TO MANAGING HABITAT FOR ENDANGERED SPECIES IN WHAT INTERIOR SECRETARY BRUCE BABBITT HOPES WILL BECOME A TREND THIS IS AN UNPRECEDENTED AGREEMENT IN TERMS OF COOPERATION IN TERMS OF THE FOUR MILLION ACRES IT PROTECTS AND IN TERMS OF THE JOBS IT SAVES MR BABBITT SAID AT A NEWS CONFERENCE TO UNVEIL THE PLAN GEORGIAPACIFIC PRESIDENT AD CORRELL AGREED THE PLAN EMBRACES NOT JUST THE LETTER OF THE LAW HE SAID BUT THE SPIRIT OF THE ENDANGERED SPECIES ACT WHILE ENABLING US TO CONTINUE MANAGING OUR LANDS FOR COMMERCIAL VALUE THE AGREEMENT WILL PROTECT 113 REDCOCKADED WOODPECKER COLONIES ONE OR MORE BIRDS LIVE IN EACH COLONY WHICH NEED RELATIVELY FEW OLD TREES TO MAINTAIN A SUITABLE HABITAT THE COLONIES ARE SCATTERED THROUGHOUT FOUR MILLION ACRES OF FOREST IN THE SOUTHEASTERN UNITED STATES THAT IS OWNED BY GEORGIAPACIFIC AS PART OF THE NONBINDING AGREEMENT THE COMPANY PROMISED TO UPHOLD THE ENDANGERED SPECIES ACT AND TO MAINTAIN A 200FOOT BUFFER ZONE AROUND EACH WOODPECKER COLONY SPECIES THAT ARE LISTED AS THREATENED OR ENDANGERED UNDER THE FEDERAL LAW ARE PROTECTED FROM DEVELOPMENT IN ADDITION GEORGIAPACIFIC WILL PROVIDE ROUGHLY 100 ACRES OF FORAGING HABITAT FOR EACH COLONY BRINGING THE TOTAL PROTECTED LAND FOR ALL THE BIRDS TO 56000 ACRES AND SELECTIVE TREECUTTING IN THOSE AREAS WILL MINIMIZE GEORGIAPACIFIC'S LOSSES THE ACCORD FOLLOWS A SIMILAR SITUATION SURROUNDING THE CALIFORNIA GNATCATCHER IN WHICH REALESTATE DEVELOPERS COOPERATED WITH THE GOVERNMENT TO DEVELOP PRIVATE LAND THAT WAS ALSO HOME TO AN ENDANGERED SPECIES BUT IN THE CASE OF THE GNATCATCHER THE GOVERNMENT IN EFFECT EXEMPTED THE OWNERS OF THE BIRD'S HABITAT FROM COMPLYING WITH THE LAW'S ABSOLUTE PROHIBITIONS ON KILLING ANY MEMBERS OF A PROTECTED SPECIES AS LONG AS THE LANDOWNERS AGREE TO PRESERVE SUBSTANTIAL PARTS OF THEIR GNATCATCHER HABITAT AT THE NEWS CONFERENCE MR BABBITT HINTED THAT ARRANGEMENTS TO PROTECT THE REDCOCKADED WOODPECKER ARE IN THE WORKS WITH OTHER COMPANIES BUT HE DECLINED TO ELABORATE HE SAID HE HOPES THE GEORGIAPACIFIC AGREEMENT WILL PREVENT A CRISIS SITUATION LIKE THE ONE THAT DEVELOPED IN THE PACIFIC NORTHWEST WITH THE NORTHERN SPOTTED OWL THE ESSENCE OF THIS AGREEMENT IS SITTING DOWN AND NEGOTIATING TO KEEP THIS THING OUT OF THE LEGAL PROCESS MR BABBITT SAID 9304160094 930416 INTERNATIONAL FLAMBOYANT FRENCH BANKER FEELS HEAT FOR HIGH SPENDING MODEST LENDING BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON JACQUES ATTALI THE FLAMBOYANT PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT IS UNDER PRESSURE TO RELINQUISH SOME CONTROL OVER THE BANK PEOPLE AT THE EBRD SAID THESE BANK SOURCES SAID IT IS TIME FOR THE VISIONARY FRENCHMAN WHO CREATED THE EBRD WHICH MAKES LOANS TO THE COUNTRIES OF THE FORMER SOVIET BLOC TO ASSUME THE SINGLE ROLE OF CHIEF STATESMAN GIVING SPEECHES TRAVELING TO THE BANK'S 22 CLIENT COUNTRIES AND SETTING POLICY THE TIME HAS COME WHEN HE CAN'T BE THE CHAIRMAN CEO CHIEF OPERATING OFFICER AS WELL AS HIRING PEOPLE SAID ONE OF THE BANK'S 23 DIRECTORS HE'S TRYING TO DO IT ALL UNDER THIS SCENARIO A BANK DIRECTOR SAID MR ATTALI WOULD BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER CEDING THE ROLE OF CHIEF OPERATING OFFICER TO RON FREEMAN THE HARDHEADED INVESTMENT BANKER FROM SALOMON BROTHERS WHO AS FIRST VICE PRESIDENT CURRENTLY HEADS MERCHANT BANKING ONE OF THE EBRD'S TWO DIVISIONS WITH 600 EMPLOYEES PLUS A SITTING BOARD OF 23 DIRECTORS WITH ALTERNATES THE BANK HAS GROWN LARGE ENOUGH TO BENEFIT FROM A REORGANIZATION MR ATTALI REFUSED REQUESTS FOR INTERVIEWS HE WAS SAID TO BE HURT AND UPSET AT THIS WEEK'S BRITISH NEWS REPORTS THAT CHARGED HIM WITH LEADING A BANK THAT IN ITS TWO YEARS OF OPERATION HAS SPENT TWICE AS MUCH ON PERKS AND OFFICES AS IT HAS DISBURSED TO EASTERN EUROPE MR FREEMAN AND OTHER BANK OFFICIALS WOULDN'T COMMENT DIRECTLY ON WHETHER MR ATTALI'S ROLE WOULD CHANGE I'VE HEARD LOTS OF THINGS LIKE WHY DON'T WE MOVE TO ALBANIA' MR FREEMAN SAID BUT I DON'T TAKE ANY OF THIS SERIOUSLY HE AND I GET ALONG GREAT AND I DON'T NEED AN ORGANIZATION CHART TO DO MY JOB NO ONE DIRECTOR CAN REORGANIZE THE BANK ANYHOW THE PRESSURE COMES ON MR ATTALI NOW BECAUSE OF DISCLOSURES WIDELY REPORTED HERE THAT IN PAYING STAFF COSTS PRIVATE JET TRAVEL FOR MR ATTALI AND OUTFITTING ITS NEW LONDON HEADQUARTERS BUILDING THE BANK HAS SPENT ABOUT 200 MILLION 3103 MILLION COMPARED WITH 100 MILLION DISBURSED TO THE COUNTRIES IT SERVES ATTENTION HAS FOCUSED MOST NEGATIVELY ON THE 750000 THE BANK SPENT TO RIP OUT TRAVERTINE MARBLE FROM ITS ELEVATOR LOBBIES AND REPLACE IT WITH WHITE CARRARA MARBLE BANK OFFICIALS SAID THAT IN FACT OUTFITTING THE NEW HEADQUARTERS HAD COME IN UNDER THE 555 MILLION BUDGETED AND APPROVED BY THE BOARD LIKE OTHER TENANTS IN THE RECESSIONRACKED LONDON PROPERTY MARKET THE EBRD WAS ABLE TO GET CONCESSIONS FROM THE DEVELOPER INCLUDING 2 1/2 YEARS' FREE RENT MOREOVER BANK OFFICIALS SAID IT IS UNFAIR TO CRITICIZE AN INSTITUTION THAT IS ONLY TWO YEARS OLD FOR WHAT APPEARS TO BE A SMALL AMOUNT OF LENDING ACCORDING TO BANK STATUTES AT LEAST 60 OF THE MONEY IT LENDS OR PUTS INTO EQUITY IN THE EAST MUST GO TO PRIVATE PROJECTS THESE DON'T EXIST IN HALF THE COUNTRIES THAT THE BANK SERVES WHILE THE BANK HASN'T DISBURSED A LOT OF MONEY THIS IS ALSO BECAUSE OF THE LENGTH OF TIME IT TAKES TO GET GOVERNMENT APPROVAL AND COMPLETE A DEVELOPMENT PROJECT SUCH AS A NEW ROAD IN A REGION OF CONSTANT POLITICAL UPHEAVAL BANK EXECUTIVES SAID THROWING MONEY OUT OF THE WINDOW IS EASY DOING IT AS A PRUDENT BANKER IS DIFFICULT SAID GUY DE SELLIER THE DEPUTY HEAD OF MERCHANT BANKING WHO HAS WORKED AT THE WORLD BANK AS WELL AS AT LEHMAN BROTHERS IN NEW YORK IT'S IRRELEVANT TO COMPARE THE TOTAL COST OF OUR BUILDING TO HOW MUCH IS DISBURSED MR DE SELLIER SAID THE EBRD BOARD HAS ACTUALLY APPROVED TWO BILLION EUROPEAN CURRENCY UNITS 244 BILLION OF PROJECTS AND CLOSED ON ONE BILLION ECU'S WORTH THAT TWO BILLION ECU IS FOR 88 PROJECTS THAT TOTAL EIGHT BILLION ECU INCLUDING FINANCING PARTNERS AND EQUITY THAT COMES FROM PARTIES OTHER THAN THE EBRD HE SAID MR FREEMAN WHO CALLED MR ATTALI A PUSSYCAT COMPARED WITH SOME OF HIS FORMER COLLEAGUES ON WALL STREET SAID THE BANK HAS DONE A REMARKABLE JOB IN GETTING OFF TO A FAST START THE FUROR OVER MR ATTALI'S LIFESTYLE AND THE BANK'S MARBLE HE SAID IS A VERY SMALL TEMPEST IN A VERY SMALL TEAPOT 9304160093 930416 LEISURE & ARTS ON DISK NEW RELEASES JAZZ TO ROCK BY JIM FUSILLI ON THE HEELS OF ARRESTED DEVELOPMENT'S EXCELLENT DEBUT 3 YEARS 5 MONTHS & 2 DAYS IN THE LIFE OF CHRYSALIS COMES UNPLUGGED CHRYSALIS WHICH PRESENTS THE BAND IN A NEW AND VERY PLEASING LIGHT THE AMBITIOUS RECORDING WAS MADE LIVE AND NEW ARRANGEMENTS AND AMPLE SPONTANEOUS INTERPLAY BETWEEN THE GROUP'S VOCALISTS AND BACKING MUSICIANS STRENGTHEN THE IMPACT OF WHAT WAS ALREADY A COLLECTION OF FORCEFUL MATERIAL DRUMMING BY RASA DON AND JU JU HOUSE IS FUNKY SLUGGING OF THE HIGHEST CALIBER TOGETHER WITH BASSIST FREDERICK CASH JR THEY FIND A GROOVE AND DIG IN PERMITTING PIANIST KUNDALINI MARK BATSON AND GUITARIST BRANDON ROSS TO RIFF BEHIND INFECTIOUS JINGLEJANGLE RAPPING AND SINGING BY SPEECH TO DEMONSTRATE HOW CONFIDENT THE BAND IS IN ITS PLAYING THE BSIDE CARRIES THE ASIDE'S TRACKS MINUS THE VOCALS ISOLATED DON HOUSE AND CASH ARE EVEN MORE IMPRESSIVE AS THEY SHIFT FROM FUNK TO JAZZ TO ROCK AND BACK AGAIN AN EXCEPTIONAL RECORDING UNPLUGGED SETS THE STANDARD FOR RAP AND HIPHOP GROUPS WHO SEEK TO FUSE OTHER MUSIC FORMS WITH THEIR STYLE WILLIE NELSON'S LATEST RECORDING ACROSS THE BORDERLINE IS EXCEPTIONAL IN ITS OWN WAY NELSON'S FAMILIAR TIMEWORN VOICE EXPLORES TO PERFECTION MATERIAL BY BOB DYLAN PAUL SIMON LYLE LOVETT AND JOHN HIATT AS WELL AS THREE OF HIS OWN TUNES INCLUDING THE TENDER VALENTINE BALLADS ARE NELSON'S METIER AND ON TS BURTON'S BITTER LULLABY GETTING OVER YOU HE CARESSES THE SIMPLE MELODY AND ON LOVETT'S IF I WERE THE MAN SHE WANTED HE GROWS MORE WISTFUL AS THE SONG UNFOLDS BUT THE ALBUM'S MOST REMARKABLE CUT IS THE POIGNANT NELSONSINEAD O'CONNOR DUET ON PETER GABRIEL'S DON'T GIVE UP A HEARTWRENCHING SONG IN WHICH O'CONNOR TRIES TO ENCOURAGE A DISHEARTENED NELSON A MAN WHOSE DREAMS HAVE ALL DESERTED DON'T GIVE UP O'CONNOR PLEADS IN HER LOVELY FRAGILE VOICE YOU STILL HAVE US WE'RE PROUD OF WHO YOU ARE THE SONG FADES ON A DELICATE CODA BY TRUMPETER MARK ISHAM ONE OF SEVERAL INSTRUMENTALISTS WHO CONTRIBUTE TO THE SPECIAL TEXTURE OF THE RECORDING AS A FAN OF DJANGO REINHARDT NELSON WOULD LOVE THE DAVID GRISMAN QUINTET'S NEW RELEASE DAWGWOOD ACOUSTIC DISC A SNAPPY COLLECTION OF DJANGOESQUE NUMBERS WITH GRISMAN'S MANDOLIN REPLACING REINHARDT'S QUICKSILVER GUITAR STEPPIN' WITH STEPHANE CAPTURES THE BRASH SPIRIT OF THE QUINTET OF THE HOT CLUB OF FRANCE REINHARDT AND STEPHANE GRAPPELLI'S GROUP IN THE MID '30S BOLERO DE DJANGO THE ONLY REINHARDT COMPOSITION ON THE ALBUM IS A FUN ROMP WHILE ON ASSANHADO GRISMAN DANCES AROUND THE CHUGGING RHYTHM TRADING WITH FLUTIST MATT EAKLE AS ALWAYS GRISMAN'S PLAYING IS PURE AND UNCLUTTERED HIS TONE CLEAR AND VIBRANT PARTICULARLY IN THE UPPER REGISTER EAKLE JOINS GRISMAN FOR SOME AFFECTING UNISON WORK AN INTERESTING PAIRING FLUTE AND MANDOLIN AND ROB MONTGOMERY HANDLES THE PULSING RHYTHM ON GUITAR AND OCCASIONALLY TOSSES OFF A NEAT SOLO VIOLINIST JOE CRAVEN IS UP TO THE CHALLENGE OF HIS COLLEAGUES ON JAZZIN' WITH JOEBOB OFFERED AT BREAKNECK SPEED MICK JAGGER'S LATEST EFFORT WANDERING SPIRIT ATLANTIC IS A NASTY PIECE OF ROUGHANDTUMBLE ROCK N' ROLL PACKED WITH FIERCE MOMENTS MOTHER OF MAN THINK FED BY DRUMMER CURT BISQUERA AND THE TITLE TRACK IN WHICH A CRISP INTRO GIVES WAY TO FULLTILT BOOGIE BUT WANDERING SPIRIT ISN'T ALL POUNDING ROCK ANGEL IN MY HEART IS AN EERIE BALLAD FEATURING A HARPSICHORD SOUND AND A STRING SECTION WHILE THE COUNTRYISH EVENING GOWN PERMITS JAGGER TO REVIVE HIS DEAD FLOWERS TWANG THE TRADITIONAL SEAFARING BALLAD HANDSOME MOLLY FEATURES ROBIN MCKIDD ON FIDDLE THE QUALITY CAST ALSO INCLUDES BILL PRESTON AND BELMONT TRENCH ON KEYBOARDS SAXOPHONIST COURTNEY PINE AND GUITARIST JIMMY RIP WHO IS A REVELATION THROUGHOUT SCOTT HAMILTON WITH STRINGS CONCORD IS A GENTLE TRIBUTE TO ROMANCE THE TRADITIONALJAZZ EQUIVALENT OF CHAMPAGNE AND TENDER KISSES BEFORE A CRACKLING FIREPLACE THE SAXOPHONIST HAMILTON WORKS WELL WITH THE 20PIECE STRING ORCHESTRA NEVER RUSHING TENDERLY TOYING WITH LUSH MELODIES SUPPORTING THE STRINGS AS MUCH AS THEY SUPPORT HIS RICH TENOR THE WELLCHOSEN MATERIAL INCLUDES THE STANDARDS THE LOOK OF LOVE MY FOOLISH HEART ANGEL EYES AND A LOVELY YOUNG AND FOOLISH PIANIST ALAN BROADBENT WHO SHINES AS THE PIANIST IN CHARLIE HADEN'S QUARTER WEST PROVIDED THE ARRANGEMENTS AND CONDUCTED THE ENSEMBLE ON SEVERAL CUTS ON HIS DELIGHTFUL NEW JAZZ RECORDING SANCTIFIED SHELLS ANTILLES STEVE TURRE LAYS ASIDE HIS TROMBONE AND JOINS IN ON THE CONCH SHELL AN INSTRUMENT THAT HAS A WARM BELLOWING SOUND THAT FALLS SOMEWHERE BETWEEN A FRENCH HORN AND A BARITONE HUMMING THROUGH CUPPED HANDS TURRE AND FELLOW SHELL PLAYERS ROBIN EUBANKS AND REYNALDO JORGE USE THE INSTRUMENT NOT ONLY FOR HARDY SOLOS BUT TO OFFER LONG VIBRATING LINES THAT FLOAT OVER PERCOLATING LATIN RHYTHMS PRODUCING AN EFFECT THAT IS HYPNOTIC THE THREEPART SUITE AFRICAN SHELLS FEATURES TURRE ON SHELLS AND ANTELOPE HORNS AS KIMATI DINIZULU PROVIDES SOPHISTICATED RHYTHMS ON TRADITIONAL AFRICAN PERCUSSION INSTRUMENTS ELSEWHERE TURRE AND HIS COLLEAGUES RETRIEVE THEIR TROMBONES FOR MACHO A BUBBLING TRIBUTE TO MACHITO GUMBO AND TOREADOR WHICH INCLUDES TURRE'S FORMER MENTOR DIZZY GILLESPIE 9304160092 930416 TWO ARE CONVICTED BY JURY ON CHARGES OF GLOBAL DUMPING LOS ANGELES TWO MEN WERE CONVICTED OF ILLEGALLY EXPORTING HAZARDOUS WASTE IN ONE OF THE FIRST JURY CONVICTIONS ON GLOBALDUMPING CHARGES THE US ATTORNEY'S OFFICE SAID TARIQ AHMAD OF RENO NEV AND RAFAT ASRAR OF IRVINE CALIF WERE CONVICTED OF ILLEGALLY TRANSPORTING AND EXPORTING HAZARDOUS WASTE TO PAKISTAN IN VIOLATION OF THE RESOURCE CONSERVATION AND RECOVERY ACT THE JURY ALSO FOUND THE MEN GUILTY OF ARSON AND CONSPIRACY TO COMMIT ARSON MAIL FRAUD AND PERJURY IN ADDITION MR AHMAD WAS CONVICTED OF MONEY LAUNDERING PROSECUTORS ALLEGED THE MEN HAD ENGAGED IN A SCHEME TO TORCH A FINANCIALLY FAILING CHEMICALS LAB COLLECT 205000 IN INSURANCE AND EXPORT THE HAZARDOUS WASTE PRODUCED TO AVOID THE 80000 COST OF LEGAL DISPOSAL PAKISTAN AUTHORITIES WERE TIPPED OFF TO THE SCHEME AND ORDERED THE WASTE RETURNED TO THE US MR AHMAD FACES A MAXIMUM SENTENCE OF 78 YEARS IN PRISON AND A FINE OF 38 MILLION AND MR ASRAR FACES A MAXIMUM SENTENCE OF 25 YEARS IN PRISON AND A FINE OF 500000 SENTENCING IS SCHEDULED FOR JUNE LAWYERS FOR MR AHMAD AND MR ASRAR COULDN'T BE REACHED FOR COMMENT 9304160091 930416 ABREAST OF THE MARKET INDUSTRIALS EDGE HIGHER LIFTED BY UTILITY TRANSPORTATION STOCKS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONTINUED DECLINES IN INTEREST RATES AND GAINS IN UTILITY AND TRANSPORTATION STOCKS PROPPED UP AN OTHERWISE SICKLY STOCK MARKET THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 028 POINT TO 345592 IN HEAVY TRADING THE STANDARD & POOR'S 500STOCK INDEX LOST 026 TO 44840 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 034 TO 24739 BUT TWO OTHER SPECIALIZED STOCK MARKET INDEXES CONTINUED TO HIT NEW HIGHS THE DOW JONES TRANSPORTATION AVERAGE GAINED 1228 POINTS TO 167321 ITS FOURTH CONSECUTIVE RECORD THIS WEEK BIG GAINS IN UAL WHICH JUMPED 2 3/4 TO 146 3/8 AND A HANDFUL OF RAILROAD STOCKS BUOYED THE INDEX THE DOW JONES UTILITY AVERAGE GAINED 157 TO 24756 THE UTILITY INDEX HAS BEEN REACHING NEW HIGHS DAILY SINCE APRIL 2 THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER SAID THE STOCK MARKET IS GIVING MIXED SIGNALS RIGHT NOW HE POINTED OUT THAT IN THE PAST WEEK STOCKS THAT ARE SENSITIVE TO LOWER INTEREST RATES SUCH AS BANKS UTILITIES AND FINANCIAL COMPANIES HAVE BEEN ROARING HIGHER AT THE SAME TIME STOCKS WHOSE FORTUNES ARE TIED TO THE ECONOMY HAVE ALSO BEEN PERFORMING WELL THE MARKET IS VERY DIFFICULT TO READ BECAUSE INTERESTSENSITIVE STOCKS ARE SAYING THAT THE ECONOMY IS WEAKENING AND ECONOMICALLY SENSITIVE STOCKS ARE SAYING THE ECONOMY IS COMING BACK HE SAID IN ANY CASE HE SAID INVESTORS ARE RELUCTANT TO SELL BECAUSE THEY ARE HOPING THE ENORMOUS ROLLOVER OF FUNDS THIS MONTH FROM MATURING CERTIFICATES OF DEPOSIT WILL BE ENOUGH TO PUSH STOCK PRICES HIGHER AND PROPEL THE DOW JONES INDUSTRIAL AVERAGE OVER 3500 ACCORDING TO AMG DATA SERVICE WHICH TRACKS MUTUAL FUND INFLOWS 32 BILLION POURED INTO STOCK FUNDS IN THE WEEK ENDED APRIL 14 THE HIGHEST AMOUNT SINCE LATE JANUARY MORE SIGNIFICANTLY IN THE PAST THREE WEEKS ABOUT 4 BILLION HAS FLOODED INTO NOLOAD STOCK FUNDS WHICH DON'T CHARGE SALES COMMISSIONS SAVVY INVESTORS ARE MORE LIKELY TO INVEST IN THESE FUNDS BECAUSE THEY DON'T INCUR EXTRA CHARGES WHEN GETTING IN OR OUT OF THE FUNDS BUT MR GALLAGHER SAID HE IS CONCERNED THE STOCK MARKET IS SETTING ITSELF UP FOR A SLIDE YESTERDAY'S ADVANCE IN THE INDUSTRIALS HE NOTED WAS NOT MATCHED BY SIMILAR GAINS IN THE STANDARD & POOR'S 500 AND NASDAQ COMPOSITE INDEXES AN OMINOUS SIGN FOR TECHNICAL ANALYSTS VOLUME ON THE BIG BOARD TOTALED 259343980 SHARES UP SLIGHTLY FROM 256054580 SHARES WEDNESDAY DECLINERS BEAT ADVANCERS 1016 TO 931 LIFETIME JUMPED 2 1/8 TO 27 THE HOME HEALTHCARE SERVICES COMPANY SAID IT IS DETERMINED TO ACTIVELY PURSUE THE SALE OF THE FIRM OR ITS INDIVIDUAL DIVISIONS IT NOTED THAT IT HAS RECEIVED INDICATIONS OF INTEREST FROM A NUMBER OF PROSPECTIVE BUYERS AMERICAN TELEPHONE & TELEGRAPH ROSE 1 TO 59 3/4 THE COMPANY SAID IT IS SEEKING A LICENSE TO OPERATE AND SELL INTERNATIONAL TELECOMMUNICATIONS SERVICES IN THE UNITED KINGDOM FIRSTQUARTER EARNINGS REPORTS CONTINUED TO STEER MANY STOCKS ANTHEM ELECTRONICS PLUNGED 7 3/8 TO 31 1/2 AFTER THE MARKET CLOSED WEDNESDAY THE COMPANY REPORTED THAT FIRSTQUARTER PROFIT TUMBLED TO 45 CENTS A SHARE FROM 62 CENTS A SHARE A YEAR EARLIER TEXAS INSTRUMENTS SLUMPED 1 1/8 TO 54 1/2 EVEN THOUGH PROFIT FOR THE FIRST QUARTER SWELLED TO 85 CENTS A SHARE FROM 35 CENTS A SHARE A YEAR EARLIER GILLETTE FELL 2 TO 54 THE CONSUMER PRODUCTS COMPANY HAD PROFIT OF ONE CENT A SHARE FOR THE FIRST QUARTER COMPARED WITH 58 CENTS A SHARE A YEAR EARLIER PROFIT FOR THE LATEST QUARTER WAS AFFECTED BY A CHARGE RELATED TO VARIOUS ACCOUNTING CHANGES GEORGIAPACIFIC JUMPED 3 5/8 TO 65 3/4 THE LUMBER COMPANY REPORTED LATE WEDNESDAY THAT IT EARNED 47 CENTS A SHARE FOR THE FIRST QUARTER AFTER A LOSS OF 67 CENTS A SHARE IN THE YEAREARLIER PERIOD WEYERHAEUSER GAINED 1 3/4 TO 45 1/2 THE TIMBER COMPANY EARNED 112 IN THE FIRST QUARTER AFTER SPECIAL GAINS OF 47 CENTS A SHARE A YEAR EARLIER IT EARNED 43 CENTS A SHARE T2 MEDICAL SLID 3 1/4 TO 11 1/8 THE COMPANY SOLD ITS RESPIRATORY THERAPY ASSETS TO LINCARE HOLDINGS FOR ABOUT 9 MILLION IN CASH THE MOVE SHOULD BOOST THE COMPANY'S FISCAL SECONDQUARTER PERSHARE EARNINGS SAFETYKLEEN DROPPED 1 TO 18 1/2 AN OPPENHEIMER ANALYST DOWNGRADED HIS INVESTMENT RATING ON THE STOCK TO MARKET PERFORMER FROM BUY TRADERS SAID SAFETYKLEEN IS DUE TO REPORT ITS FIRSTQUARTER EARNINGS AFTER THE MARKET CLOSES TODAY NATIONAL MEDICAL ENTERPRISES ADDED 3/4 TO 7 7/8 THE COMPANY SAID IT DOESN'T BELIEVE A FEDERAL INVESTIGATION OF ITS TWO MISSOURI PSYCHIATRIC HOSPITALS WILL BE FINANCIALLY SIGNIFICANT 9304160090 930416 NEW YORK'S COMEX GETS OVERTURE FROM BIG BOARD NEW YORK NEW YORK'S COMMODITY EXCHANGE ALREADY THE OBJECT OF A COUPLE OF TAKEOVER OFFERS HAS RECEIVED AN OVERTURE FROM ANOTHER PARTY THE NEW YORK STOCK EXCHANGE COMEX SPOKESMAN ALAN HANSON SAID THE BIG BOARD SENT A LETTER TO THE COMEX BOARD SAYING THAT IT WAS INTERESTED IN SOME SORT OF AFFILIATION THE LETTER WAS SIGNED BY LEWIS J HOROWITZ EXECUTIVE VICE PRESIDENT EQUITY MARKETING AT THE BIG BOARD AND CHAIRMAN OF THE NEW YORK FUTURES EXCHANGE A BIG BOARD UNIT MR HANSON SAID THE PRECIOUS METALS EXCHANGE RECEIVED SIMILAR LETTERS OF INTEREST FROM THE CHICAGO MERCANTILE EXCHANGE AND THE NEW YORK MERCANTILE EXCHANGE HE SAID THE BOARD SENT LETTERS TO EACH OF THE PARTIES REQUESTING A SPECIFIC PROPOSAL A BIG BOARD SPOKESMAN SAID LAST NIGHT THAT THE EXCHANGE IS NOT ENGAGED IN DISCUSSIONS ABOUT THE ACQUISITION OF COMEX THE COMEX WHICH HAS BEEN STRUGGLING FOR SEVERAL YEARS BECAUSE OF DEADINTHEWATER MARKETS FOR SILVER AND GOLD IS CONSIDERING A TAKEOVER OFFER FROM THE CHICAGO BOARD OF TRADE AND IN MARCH THE COFFEE SUGAR & COCOA EXCHANGE MADE A BID FOR THE COMEX IN AN ATTEMPT TO KEEP THE EXCHANGE IN NEW YORK 9304160089 930416 PPG INDUSTRIES POSTS LOSS OF 1566 MILLION AS RESULT OF A CHARGE PITTSBURGH PPG INDUSTRIES INC POSTED A LOSS OF 1566 MILLION OR 147 A SHARE FOR THE FIRST QUARTER BECAUSE OF A NONCASH CHARGE FOR ACCOUNTING CHANGES BUT ON AN OPERATING BASIS THE MAKER OF CHEMICALS COATINGS AND GLASS EARNED 934 MILLION OR 88 CENTS A SHARE WELL ABOVE ANALYSTS' ESTIMATES OF 76 CENTS A SHARE THE COMPANY CREDITED THE IMPROVEMENT TO A HIGHER MARGIN IN GLASS AND COATINGS AND OVERALL INCREASES IN PRODUCTIVITY THE STRONG OPERATING EARNINGS CAME ON FLAT SALES OF 145 BILLION THE FIRSTQUARTER EARNINGS INCLUDED A 3571 MILLION CHARGE FOR THE CHANGE IN HOW THE COMPANY ACCOUNTS FOR RETIREE HEALTH BENEFITS A 904 MILLION GAIN FOR A CHANGE IN HOW THE COMPANY ACCOUNTS FOR INCOME TAXES AND A 167 MILLION GAIN FOR THE SALE OF PPG'S INTEREST IN AN INSURANCE COMPANY IN THE YEAREARLIER QUARTER THE COMPANY HAD NET INCOME OF 788 MILLION OR 74 CENTS A SHARE AT A NEWS CONFERENCE AFTER THE COMPANY'S ANNUAL MEETING VINCENT A SARNI CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALSO SAID ANALYSTS' ESTIMATES OF 390 TO 395 A SHARE FOR 1993 WERE NOT A BAD NUMBER IN 1992 PPG EARNED 319 MILLION OR 301 A SHARE MEANTIME TWO DIRECTORS RETIRED DOUGLAS D DANFORTH 70 YEARS OLD FORMER CHAIRMAN OF WESTINGHOUSE ELECTRIC CORP AND A DIRECTOR SINCE 1981 AND JOHN W MORRISON 70 FORMER CHAIRMAN OF NORWEST CORP AND A DIRECTOR SINCE 1983 THE MOVES BRING THE NUMBER OF DIRECTORS TO NINE 9304160088 930416 CLINTONS' FEDERAL TAX BILL TOTALS 70228 FOR 1992 WASHINGTON PRESIDENT CLINTON AND HILLARY RODHAM CLINTON PAID 70228 IN FEDERAL INCOME TAXES FOR 1992 INCLUDING A CHECK FOR 4085 THAT WAS MAILED IN WITH THEIR RETURN THE CLINTON'S HAD AN ADJUSTED GROSS INCOME OF 290697 WITH 203172 COMING FROM MRS CLINTON'S WORK AS A CORPORATE ATTORNEY ACCORDING TO THEIR TAX RETURNS RELEASED YESTERDAY MR CLINTON EARNED 34527 AS GOVERNOR OF ARKANSAS THEIR INCOME ALSO INCLUDED INTEREST DIVIDENDS PARTNERSHIPS CAPITAL GAINS AND MRS CLINTON'S DIRECTORS FEES AND HONORARIA THE CLINTONS SHOWED 16336 IN CAPITAL GAINS WITH 13199 COMING FROM THE SALE OF HER INTEREST IN THE PARTNERSHIP OWNING THE BUILDING THAT HOUSES THE ROSE LAW FIRM THE CLINTONS REPORTED DIVIDENDS FROM LIZ CLAIBORNE INC WALMART STORES INC AND TCBY ENTERPRISES INC THE COUPLE CLAIMED 39190 IN ITEMIZED DEDUCTIONS WITH 19452 IN CHARITABLE CONTRIBUTIONS INCLUDING 2782 TO THE YALE LAW SCHOOL 10220 TO CHURCHES AND 1500 TO ARKANSAS CHILDREN HOSPITAL MEANWHILE VICE PRESIDENT AL GORE AND HIS WIFE TIPPER HAD 623243 IN INCOME WHICH INCLUDES 461529 IN ROYALTIES FROM MR GORE'S BOOK ON THE ENVIRONMENT THE COUPLE PAID 166979 IN FEDERAL TAXES AND CLAIMED 61876 IN DEDUCTIONS 9304160087 930416 STUDY REPORTS JOB SECURITY SLIPPED FOR MIDDLE AGED WASHINGTON JOB SECURITY FOR MIDDLEAGED AMERICANS SEEMS TO HAVE GONE OVER THE HILL A STUDY BY HARVARD UNIVERSITY PROF JAMES MEDOFF INDICATES THAT AMERICANS BETWEEN THE AGES OF 35 AND 54 ARE SUBSTANTIALLY MORE VULNERABLE TO PERMANENT LAYOFFS AND JOB LOSS THAN IN THE PAST PERMANENT LAYOFFS DON'T MEAN THESE PEOPLE WILL NEVER WORK AGAIN INSTEAD THE STUDY RELEASED YESTERDAY BY THE DEMOCRATIC STUDY CENTER SUGGESTS THAT WHEN MIDDLEAGED AMERICANS DO LAND NEW JOBS IT WILL OFTEN BE IN DIFFERENT LOWER PAYING POSITIONS WITH FEWER BENEFITS THE IMPLICATIONS OF SUCH FINDINGS ARE GREAT IT MEANS THAT AT A TIME WHEN FINANCIAL OBLIGATIONS ARE LIKELY TO BE THE MOST PRESSING JOB SECURITY IS MOST TENUOUS PROF MEDOFF FOUND THAT IN THE TROUGH OF THE LAST TWO RECESSIONS THE PERCENTAGE OF PEOPLE AGED 35 TO 54 WHO WERE UNEMPLOYED BECAUSE OF A PERMANENT JOB LOSS WAS 456 IN THE 1991 DOWNTURN AND 475 IN THE 1982 DOWNTURN THAT COMPARES WITH ROUGHLY 35 OF THE UNEMPLOYED WHO LOST THEIR JOBS IN THE PREVIOUS THREE TROUGHS 9304160086 930416 SCECORP POSTS DROP IN FIRSTQUARTER NET PROPOSES 2FOR1 SPLIT ROSEMEAD CALIF SCECORP POSTED A 5 DECLINE IN FIRSTQUARTER NET INCOME AND PROPOSED A 2FOR1 SPLIT OF ITS COMMON STOCK THE DISTRIBUTION OF NEW SHARES WOULD BE MADE JUNE 1 TO HOLDERS OF RECORD THE SAME DAY THE UTILITY HOLDING COMPANY SAID IT EXPECTS TO RECEIVE REGULATORY APPROVALS FOR THE SPLIT WHICH WOULD DOUBLE THE SHARES OUTSTANDING TO ABOUT 448 MILLION SCECORP SAID THE SPLIT WOULD MAKE EACH OF ITS SHARES LESS COSTLY AND THUS MORE ATTRACTIVE TO INDIVIDUAL INVESTORS IN THE FIRST QUARTER THE SHARES TRADED AT A RECORD HIGH OF 49625 THE COMPANY SAID AFTER THE ANNOUNCEMENT THE SHARES ROSE 375 CENTS TO 4850 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NET INCOME IN THE QUARTER WAS 1489 MILLION OR 67 CENTS A SHARE COMPARED WITH NET OF 1566 MILLION OR 71 CENTS A SHARE REVENUE IN THE LATEST QUARTER ROSE 4 TO 179 BILLION FROM 172 BILLION AT THE ANNUAL SHAREHOLDERS' MEETING YESTERDAY HOLDERS APPROVED TWO NEW DIRECTORS THEY WERE LUIS G NOGALES 49 YEARS OLD FORMER PRESIDENT OF UNIVISION THE NATION'S LARGEST SPANISHLANGUAGE TELEVISION NETWORK AND ADM JAMES D WATKINS 66 A RETIRED NAVY OFFICER AND FORMER ENERGY SECRETARY IN THE BUSH ADMINISTRATION THE APPOINTMENTS FILL VACANCIES 9304160085 930416 NEW YORK MERC TO LAUNCH AFTERHOURS TRADES JUNE 24 NEW YORK THE NEW YORK MERCANTILE EXCHANGE THE WORLD'S LARGEST ENERGY FUTURES MARKET SET A JUNE 24 LAUNCH FOR ITS AFTERHOURS ELECTRONICTRADING SYSTEM CALLED ACCESS THE SYSTEM DEVELOPED JOINTLY BY THE EXCHANGE AMERICAN TELEPHONE & TELEGRAPH AND TASK MANAGEMENT INC WILL OPERATE MONDAY THROUGH THURSDAY EVENINGS BETWEEN 5 PM AND 8 AM EASTERN STANDARD TIME IT WILL OFFER TRADING IN THE NEW YORK MERC'S CRUDE OIL HEATING OIL AND NEW YORK HARBOR UNLEADED GASOLINE FUTURES AND OPTIONS CONTRACTS AS WELL AS IN PLATINUM FUTURES THERE ALSO WILL BE SUNDAY EVENING SESSIONS BEGINNING AT 7 PM THE EXCHANGE SAID ACCESS WILL COMPETE FOR MARKET SHARE AGAINST GLOBEX THE AFTERHOURS FUTURES TRADING SYSTEM LAUNCHED LAST YEAR AS A JOINTVENTURE BETWEEN THE CHICAGO MERCANTILE EXCHANGE THE CHICAGO BOARD OF TRADE AND REUTERS HOLDINGS PLC GLOBEX TRADING VOLUME THUS FAR HAS BEEN A DISAPPOINTMENT TRADERS HAVE SAID NEW YORK MERC PRESIDENT R PATRICK THOMPSON SAID THERE HAS BEEN HEAVY DEMAND FOR THE EXCHANGE TO MAKE AVAILABLE THE ENERGY AND PLATINUM PRODUCTS DURING OVERSEAS BUSINESS HOURS 9304160084 930416 BUSINESS BRIEF AUGAT INC SHARP RISE IN 1STPERIOD NET TO BE REPORTED FIRM SAYS AUGAT INC EXPECTS TO REPORT FIRSTQUARTER EARNINGS NEARLY DOUBLED ON A SALES INCREASE OF MORE THAN 15 MATCHING THE MOST BULLISH ESTIMATES OF ANALYSTS MARCEL P JOSEPH CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE MANSFIELD MASS MAKER OF CONNECTORS AND ELECTRONIC PARTS SHOULD POST NET INCOME OF 27 MILLION OR ABOUT 15 CENTS A SHARE COMPARED WITH 14 MILLION OR EIGHT CENTS A SHARE A YEAR EARLIER THE COMPANY EXPECTS TO REPORT SALES OF CLOSE TO 100 MILLION COMPARED WITH 846 MILLION LAST YEAR HE SAID WALL STREET WAS EXPECTING SALES OF ABOUT 95 MILLION A STAR PERFORMER DURING THE FIRST QUARTER WAS THE COMPANY'S CABLE CONNECTOR DIVISION THOUGH REPRESENTING ONLY A FIFTH OF THE COMPANY'S REVENUE IT ACCOUNTED FOR 40 OF ITS PROFIT 9304160083 930416 CROSSBORDER MERGERS DROPPED 37 DURING FIRST QUARTER TO 116 BILLION BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL SLOWED BY THE WEAK EUROPEAN ECONOMY CROSSBORDER MERGERS AND ACQUISITIONS FELL 37 IN THE FIRST QUARTER BASED ON TOTAL VALUE ACCORDING TO A SURVEY BY INTERNATIONAL ACCOUNTANTS KPMG PEAT MARWICK THE VALUE OF ANNOUNCED INTERNATIONAL DEALS FELL TO 116 BILLION IN THE FIRST QUARTER FROM 183 BILLION A YEAR EARLIER THE ACTIVITY ALSO WAS DEPRESSED BY TYPICALLY SLOW MERGERS AND ACQUISITIONS ACTIVITY IN THE BEGINNING OF THE YEAR BUT HIGH INTEREST RATES IN FRANCE A WIDENING CORRUPTION INVESTIGATION IN ITALY AND A GENERALLY WEAK EUROPEAN ECONOMY ALL CONTRIBUTED TO A REVERSAL OF LAST YEAR'S PICKUP IN CROSSBORDER DEALS SAID LENZ NEUHAUSER NATIONAL DIRECTOR OF MERGERS AND ACQUISITIONS AT KPMG'S CHICAGO OFFICE POLITICAL AND ECONOMIC CIRCUMSTANCES ESPECIALLY IN EUROPE CONTRIBUTED TO THE FALL THIS YEAR MR NEUHAUSER SAID THE TOTAL NUMBER OF MERGERS AND ACQUISITIONS WORLDWIDE FELL 35 TO 372 FROM 569 IN THE QUARTER A YEAR EARLIER BRITISH AND NORTH AMERICAN TRANSACTIONS ACCELERATED HOWEVER AS PURCHASES BY CANADIAN COMPANIES JUMPED MORE THAN THREEFOLD TO 997 MILLION IN 18 DEALS AND CROSSBORDER PURCHASES BY UK COMPANIES MORE THAN DOUBLED TO 47 BILLION INVOLVING 80 INDIVIDUAL DEALS THE BRITISH ACTIVITY OUTPACED SECONDRANKED US WHERE THE VALUE OF CROSSBORDER ACQUISITIONS EASED 96 TO 17 BILLION AMONG 78 DEALS FROM 19 BILLION IN 102 TRANSACTIONS A YEAR EARLIER BRITAIN CANADA AND THE US WERE THE FIRST INTO THE RECESSION AND ARE SHOWING THAT THEY WILL BE THE FIRST OUT AS THEY APPEAR TO BE THE FIRST TO RECOVER FROM THE M&A SLUMP MR NEUHAUSER SAID BRITISH RETAILER KINGFISHER PLC MADE THE LARGEST ACQUISITION IN THE QUARTER WITH ITS 15 BILLION PURCHASE OF DARTY GROUP OF PARIS THE VALUE OF FRENCH ACQUISITIONS IN THE QUARTER PLUMMETED 94 TO 410 MILLION AMONG 40 TRANSACTIONS FROM 72 BILLION IN 72 DEALS A YEAR EARLIER THE YEAREARLIER QUARTER HOWEVER INCLUDED TWO ACQUISITIONS TOTALING 68 BILLION BY ALCATEL ALSTHOLM CGE AND SOCIETE NATIONALE ELF AQUITAINE WHILE HIGH INTEREST RATES IN FRANCE SLOWED ACQUISITIONS BY FRENCH COMPANIES KPMG NOTED THEY DIDN'T STOP SALES OF FRENCH COMPANIES A TREND THE ACCOUNTING FIRM SAID IT EXPECTS TO CONTINUE CROSSBORDER SALES OF FRENCH COMPANIES ROSE 84 IN VALUE TO 17 BILLION IN THE PERIOD FROM 925 MILLION A YEAR EARLIER ITALIAN ACQUISITIONS ALSO PLUNGED FALLING TO JUST 12 TRANSACTIONS VALUED AT ONLY 36 MILLION FROM 37 DEALS VALUED AT 1 BILLION A YEAR EARLIER THE WIDENING CORRUPTION INVESTIGATION IN ITALY WHICH MOSTLY CONCERNS KICKBACKS FOR POLITICAL CONTRACTS WILL CONTINUE INHIBIT ITALIAN COMPANIES FROM COMMITTING THEMSELVES TO LARGESCALE FOREIGN EXPANSION WHILE UNCERTAINTY ALSO REMAINS ABOUT HOW THE COUNTRY PLANS TO COPE WITH ITS BUDGET DEFICIT MR NEUHAUSER SAID THE SLOWDOWN WASN'T CONFINED TO EUROPE CROSSBORDER ACQUISITIONS BY JAPANESE COMPANIES ALSO FELL SHARPLY TO 12 TRANSACTIONS VALUED AT 48 MILLION FROM 30 DEALS VALUED AT 978 MILLION IN THE QUARTER A YEAR EARLIER THE DROP CONTINUES A DECLINE IN ACTIVITY THAT BEGAN IN JAPAN IN LATE 1989 MR NEUHAUSER EXPLAINED AS REAL ESTATE MARKETS IN BOTH JAPAN AND THE US BEGAN TO COLLAPSE OUTSIDE OF THE EUROPEAN COMMUNITY AND NORTH AMERICA CROSSBORDER ACQUISITIONS IN THE REST OF THE WORLD FELL 41 TO 61 DEALS VALUED AT 22 BILLION FROM 131 DEALS VALUED AT 37 BILLION A YEAR EARLIER 9304160082 930416 PHILADELPHIA FED SEES MORE GROWTH IN MANUFACTURING BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FEDERAL RESERVE BANK OF PHILADELPHIA SAID GROWTH IN THE REGION'S MANUFACTURING SECTOR IS CONTINUING ACCORDING TO THE MONTHLY BUSINESS OUTLOOK SURVEY COMPILED BY ITS RESEARCH DEPARTMENT MOST OF THE SURVEY'S CURRENT ECONOMIC INDICATORS FOR APRIL REMAIN NEAR THE LEVELS RECORDED THE PREVIOUS MONTH AND A SIZABLE PERCENTAGE OF THE SURVEYED FIRMS CONTINUE TO REPORT INCREASES IN NEW ORDERS AND SHIPMENTS SURVEY RESPONSES SUGGEST THAT PRODUCTION IS RISING WHILE EMPLOYMENT ON BALANCE IS UNCHANGED ALTHOUGH MOST INDICATORS OF ACTIVITY FOR THE NEXT SIX MONTHS REMAIN POSITIVE THEY DECLINED AGAIN THIS MONTH CONTINUING A RECENT TREND TOWARD DETERIORATION OF THESE INDEXES THE PHILADELPHIA FED SAID THE SURVEY COVERS MANUFACTURERS IN THE PHILADELPHIA FED'S REGION WHICH INCLUDES EASTERN PENNSYLVANIA SOUTHERN NEW JERSEY AND DELAWARE THE SURVEY'S GENERAL ACTIVITY DIFFUSION INDEX INCREASED TO 246 IN APRIL FROM 196 IN MARCH ALTHOUGH LOWER THAN THE LEVELS RECORDED FROM DECEMBER THROUGH FEBRUARY THE INDEX SUGGESTS THAT OVERALL BUSINESS CONDITIONS ARE STILL IMPROVING THE REGIONAL FED SAID THE DIFFUSION INDEX REPRESENTS THE PERCENTAGE OF RESPONDENTS INDICATING AN INCREASE IN ACTIVITY MINUS THE PERCENTAGE INDICATING A DECREASE ALMOST 41 OF MANUFACTURERS POLLED REPORTED INCREASES IN OVERALL ACTIVITY IN APRIL WITH 16 REPORTING DECLINES INDIVIDUAL INDICATORS REMAIN POSITIVE AND CLOSE TO THE LEVELS RECORDED IN THE MARCH SURVEY SHIPMENTS ARE INCREASING AT 32 OF THE FIRMS SURVEYED WHILE 56 REPORT NO CHANGE FROM MARCH NEW ORDERS ARE RISING AT 38 OF THE FIRMS POLLED 42 REPORT NO CHANGE OTHER CURRENT ECONOMIC INDICATORS SUGGEST THAT MANUFACTURING PRODUCTION IS RISING ALONG WITH INCREASES IN DEMAND DELIVERY TIMES ARE ON BALANCE STEADY IN APRIL AND THE PERCENTAGE OF FIRMS REPORTING INCREASES IN UNFILLED ORDERS AT 23 ONLY NARROWLY OUTNUMBERS THOSE WITH DECREASES AT 17 THE DIFFUSION INDEX FOR INVENTORIES WHICH HAD BEEN NEGATIVE FOR SEVERAL MONTHS IS NOW AT 38 WHICH SUGGESTS THAT INVENTORY LEVELS HAVE STABILIZED THE PHILADELPHIA FED SAID SURVEY RESPONSES REGARDING EMPLOYMENT CONDITIONS SUGGEST THAT PRODUCTION IS INCREASING WITHOUT WORK FORCE ADDITIONS ALTHOUGH 72 OF THE FIRMS REPORT NO CHANGE IN THE NUMBER OF WORKERS IN FACTORIES THIS MONTH THE PERCENTAGE OF FIRMS INCREASING EMPLOYMENT 13 IS OFFSET BY THE NUMBER MAKING REDUCTIONS ALSO 13 THE DIFFUSION INDEX FOR PRICES RECEIVED BY MANUFACTURING FIRMS INCREASED SLIGHTLY TO A LEVEL OF 72 IN APRIL FROM 43 IN MARCH STILL A LARGE MAJORITY OF FIRMS 73 REPORT NO CHANGE IN PRICES FOR THE MONTH ABOUT 28 OF THE POLLED MANUFACTURERS HOWEVER EXPECT TO RAISE PRICES IN THE NEXT SIX MONTHS THE PHILADELPHIA FED SAID OVERALL OPTIMISM FOR CONTINUED GROWTH IN MANUFACTURING PERSISTS ALTHOUGH THE DIFFUSION INDEX FOR GENERAL ECONOMIC ACTIVITY FOR THE NEXT SIX MONTHS FELL TO 368 IN APRIL FROM 46 IN MARCH 54 OF RESPONDING FIRMS EXPECT CURRENT ACTIVITY TO INCREASE OVER THE NEXT SIX MONTHS WHILE 17 EXPECT DECLINES IT SAID FIRMS ALSO ARE GENERALLY LESS OPTIMISTIC ABOUT HIRING MOST 66 ANTICIPATE NO CHANGE IN THEIR WORK FORCE IN THE NEXT SIX MONTHS AND THE 18 EXPECTING ADDITIONS ONLY NARROWLY OUTNUMBERS THE 17 PLANNING TO MAKE REDUCTIONS 9304160081 930416 MAUS FRERES AGREES TO GIVE DEBT HOLDERS CONTROL OF BERGNER MILWAUKEE PA BERGNER & CO SAID ITS SWISS PARENT MAUS FRERES SA TENTATIVELY AGREED TO FORFEIT ITS CONTROLLING STAKE IN THE RETAILER CLEARING THE WAY FOR DEBT HOLDERS TO TAKE OVER THE AGREEMENT IN PRINCIPLE MARKS A BIG CHANGE FROM TERMS OUTLINED IN THE REORGANIZATION PLAN BERGNER FILED IN FEBRUARY UNDER THAT PLAN MAUS FRERES WOULD HAVE RETAINED CONTROL OF BERGNER THROUGH A 40 EQUITY STAKE IN THE COMPANY AND AN ADDITIONAL 50 MILLION CASH INFUSION FROM IT AND A COINVESTOR THE DEBT HOLDERS A GROUP OF SOCALLED VULTURE FUNDS LED BY DICKSTEIN PARTNERS INC OF NEW YORK WOULD HAVE RECEIVED A 60 EQUITY STAKE BUT LESS VOTING POWER THAN MAUS FRERES THEY DECRIED THE PLAN AS UNFAIR BUT AFTER NEGOTIATIONS WITH THE DICKSTEIN GROUP MAUS FRERES AGREED YESTERDAY TO STEP ASIDE AND ALLOW ALL COMMON SHARES TO GO TO THE DEBT HOLDERS IN EXCHANGE FOR THEIR CLAIMS AND AN UNDETERMINED AMOUNT OF CASH REQUIRED FOR BERGNER TO EMERGE FROM BANKRUPTCY THE DEBT HOLDERS PLAN TO FILE A NEW REORGANIZATION PLAN INCLUDING THESE TERMS MARK METZ A LAWYER REPRESENTING THE DICKSTEIN GROUP SAID MAUS FRERES WOULD GET SOMETHING IN RETURN FOR ITS STAKE BUT HE WOULDN'T ELABORATE IN ADDITION THE DEBT HOLDERS AGREED IN PRINCIPLE THAT THE UNSECURED CREDITORS OF BERGNER AND CPS DEPARTMENT STORES INC WOULD GET A CHOICE OF RECEIVING EITHER CASH EQUAL TO 325 CENTS ON THE DOLLAR OR CASH EQUAL TO 31 CENTS ON THE DOLLAR PLUS WARRANTS TO BUY COMMON STOCK WORTH AN ADDITIONAL 25 OF THE CLAIM THE ORIGINAL PLAN WOULD HAVE PAID THEM 193 CENTS ON THE DOLLAR THE DEBT HOLDERS REITERATED THAT THEY PLAN TO KEEP BERGNER'S TOP MANAGEMENT INTACT INCLUDING PRESIDENT STANTON J BLUESTONE 9304160080 930416 LETTERS TO THE EDITOR THE HARDER WE WORK THE BETTER WE FEEL LYNNE CHENEY'S REFLECTIONS ON THE APPARENT DEGENERATION OF THE AMERICAN WORK ETHIC HARD WORK ONCE AS AMERICAN AS APPLE PIE EDITORIAL PAGE APRIL 6 ARE DISTRESSING TO SAY THE LEAST THE SUGGESTION THAT PARENTS AND TEACHERS MIGHT SHY AWAY FROM CRITICIZING CHILDREN'S WORK HABITS FOR FEAR OF WOUNDING THEIR SELFESTEEM RUNS COUNTER TO OUR EXPERIENCE IN THE CALIFORNIA CONSERVATION CORPS WE FIND THAT WORK ITSELF AND THE SATISFACTION OF A JOB WELL DONE IS A SOURCE OF PRIDE AND ACCOMPLISHMENT FOR THE YOUNG MEN AND WOMEN OF THE CORPS WORK IS WHAT EMPOWERS THEM AND BOOSTS THEIR SELFESTEEM AND GIVEN THE DIVERSITY OF OUR CORPS MEMBERS THIS RESPECT FOR WORK SEEMS TO CUT THROUGH RACE GENDER AND CLASS DISTINCTIONS HARD WORK MATTERS TO US AND IT MATTERS TO THE EMPLOYERS WHO WILL HIRE OUR YOUNG PEOPLE WE BELIEVE IN THE WORK ETHIC SO STRONGLY THAT WE'VE MADE IT THE MOTTO OF OUR PROGRAM HARD WORK LOW PAY MISERABLE CONDITIONS AND MORE 9304160079 930416 DIVIDEND BRIEF GRUMMAN CORP QUARTERLY STOCK DIVIDEND INCREASED 20 TO 30 CENTS GRUMMAN CORP DIRECTORS DECLARED A 20 INCREASE IN THE QUARTERLY DIVIDEND ON ITS COMMON STOCK TO 30 CENTS FROM 25 CENTS THE DIVIDEND IS PAYABLE MAY 20 TO STOCK OF RECORD AT CLOSE OF BUSINESS MAY 10 RENSO L CAPORALI CHAIRMAN OF THE AEROSPACE AND ELECTRONIC SYSTEMS CONCERN SAID AFTER THE ANNUAL SHAREHOLDERS MEETING THAT SALES THIS YEAR SHOULD BE ABOUT EVEN WITH 1992 AT 35 BILLION AND MAY INCREASE BY AS MUCH AS 5 IN 1994 MR CAPORALI CAUTIONED THAT LONGRANGE FORECASTS REMAIN UNCERTAIN BECAUSE THE DEFENSE DEPARTMENT IS CONTINUING ITS BOTTOMUP REVIEW OF ALL PROGRAMS WITH AN EYE TOWARD FURTHER CUTS FOR GRUMMAN BASED IN BETHPAGE NY THE REVIEW COULD AFFECT CONTRACTS ON AIRCRAFT PROGRAMS SUCH AS THE JPATS TRAINER AND THE AFX MILITARY JET MR CAPORALI ALSO SAID HE IS COMFORTABLE WITH THE MIDDLE RANGE OF ANALYSTS' 1993 EARNINGS PROJECTIONS FOR THE COMPANY WHICH STRETCH FROM 270 TO 350 A SHARE 9304160078 930416 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON'S HEALTH PLAN RUNS INTO TROUBLE WITH CONGRESS REPUBLICANS ARE ANGRY CLAIMING THE WHITE HOUSE HASN'T SOUGHT SERIOUS ADVICE ON THE PROPOSAL FROM THEM DEMOCRATS ALSO GRUMBLE HOUSE HEALTH SUBCOMMITTEE CHAIRMAN STARK PROTESTS NOT BEING CONSULTED WAYS AND MEANS CHAIRMAN ROSTENKOWSKI MAY DRAFT THE HEALTH BILL IN FULL COMMITTEE BYPASSING STARK'S WHITE HOUSE WORKING GROUPS FINISH THEIR RESEARCH ON HEALTHCARE PROPOSALS BUT CLINTON SEEKS REAMS OF EXTRA INFORMATION ONE TENTATIVE DECISION AVOIDS CONTROVERSY MEDICAL WAGE AND PRICE FREEZES ARE OUT ONE PROPOSAL FOR A STANDARD BENEFITS PACKAGE WOULD COST ABOUT 3600 A FIGURE THAT WOULD SHARPLY INCREASE THE FINAL PRICE HHS SECRETARY SHALALA'S EFFORTS TO FURTHER ASSERT HERSELF DIMINISH HER CLOUT CLINTON BARGAINS WITH THE GOP ON HIS STIMULUS PLAN BUT KEEPS UP ATTACKS EVEN AS HE OFFERS TO CUT BACK AT A ROSE GARDEN MEETING WITH POLICE OFFICERS HE ADDS 200 MILLION TO REHIRE LAIDOFF POLICE AND URGES THEIR SUPPORT CLINTON SAYS HE WON'T SURRENDER ON MONEY FOR SUMMER JOBS HIGHWAY SPENDING AIDS CARE AND MEAT INSPECTORS BUT TRIMMING THE 25 BILLION IN COMMUNITYDEVELOPMENT BLOCK GRANTS REMAINS A STRONG POSSIBILITY BECAUSE OF GROWING GOP PRESSURE IT'S EVEN MORE URGENT NOW THAT WE BE BIPARTISAN SAYS A WHITE HOUSE POLITICAL AIDE CONSERVATIVE DEMOCRATS COULD TEAM UP WITH REPUBLICANS TO TRY TO ALTER CLINTON'S TAX PLAN TREASURY AIDES MEET WITH CONGRESSIONAL STAFF PEOPLE TO COUNTER BIGBUSINESS OPPOSITION TO CLINTON'S PLAN TO RAISE TAXES ON ROYALTIES THAT US FIRMS COLLECT FROM ABROAD GAYRIGHTS ACTIVISTS WORRY THEIR POWER WILL BE HURT BY A NEW SURVEY THE FINDING THAT JUST 11 OF US MALES IDENTIFY THEMSELVES AS EXCLUSIVELY HOMOSEXUAL UNDERCUTS CLAIMS OF GAY POLITICAL POWER IT WILL SHIFT THE POLITICAL PLAYING FIELD SAYS GOP CONSULTANT EDDIE MAHE GREGORY KING OF THE HUMAN RIGHTS CAMPAIGN FUND SAYS OPPONENTS WILL NOW ARGUE YOU CAN'T HAVE A SERIOUS CIVILRIGHTS PROBLEM WITH JUST 1 OR 2 OF THE POPULATION GAY LEADERS QUESTION THE SURVEY'S ACCURACY SAYING HOMOSEXUALS ARE RELUCTANT TO IDENTIFY THEMSELVES BARNEY FRANK NOTES THERE ARE A FAR GREATER NUMBER OF VOTERS WHO BACK GAY RIGHTS HOMOSEXUALS LIKE JEWISH DONORS ARE MAJOR POLITICAL CAMPAIGN CONTRIBUTORS THOUGH A RELATIVELY SMALL PART OF THE POPULATION CLINTON IS SCHEDULED TO MEET TODAY AT THE WHITE HOUSE WITH LEADERS OF HOMOSEXUAL GROUPS IN WHAT THEY SAY WILL BE THE FIRST SUCH PRESIDENTIAL MEETING EVER STATES RIGHTS WHILE ATTENTION FOCUSES ON A NATIONAL MARCH ON WASHINGTON THIS MONTH FOR GAY RIGHTS SOME OF THE MOST IMPORTANT BATTLES ARE AT THE STATE LEVEL EIGHT LEGISLATURES ARE CONSIDERING GAYRIGHTS BILLS MEANWHILE BALLOT INITIATIVES TO RESTRICT SUCH RIGHTS ARE PERCOLATING IN SIX STATES BIG STATE POLITICS GUIDES SOME CLINTON APPOINTMENTS HE WILL CHOOSE JOHN DALTON A TEXAS INVESTMENT BANKER SECRETARY OF THE NAVY FORMER MISSISSIPPI GOV RAY MABUS HAD SOUGHT THE POST THE WHITE HOUSE ALSO IS EXPECTED TO NAME BLACK NEW YORK POLITICIAN PERCY SUTTON A FRIEND OF JESSE JACKSON'S TO AN AMBASSADORSHIP IN THE CARIBBEAN CLINTON AIDES DISPUTE REPORTS THAT THE PRESIDENT HAS CURBED PRESS ACCESS DESPITE HOLDING ONLY ONE FORMAL NEWS CONFERENCE HE HAS TAKEN MORE THAN 400 WASHINGTON PRESS QUESTIONS IN HIS FIRST 12 WEEKS AND HELD 11 INFORMAL CONFERENCES MORE THAN REAGAN OR BUSH HAD DONE AT A COMPARABLE MOMENT BUT FEW AIDES DENY THAT CLINTON FEELS LITTLE AFFECTION FOR THE WASHINGTON PRESS CORPS RETURN TO RIO CLINTON IS EXPECTED TO TAKE A MAJOR ENVIRONMENTAL ACTION SOON BY SIGNING THE WILDLIFE TREATY THAT BUSH SPURNED AT LAST YEAR'S ENVIRONMENTAL SUMMIT IN RIO DE JANEIRO THE TREATY WHICH AIMS TO SLOW THE LOSS OF THE WORLD'S PLANT AND ANIMAL SPECIES WAS SIGNED BY MOST OTHER PARTICIPATING NATIONS CLINTON FACES NEW PROBLEMS IN HAITI EVEN IF DEMOCRACY IS RESTORED THE US WOULD KICK IN ABOUT 25 OF A MULTIYEAR 15 BILLION AID PROGRAM IF A PROPOSED COMPROMISE RETURNS DEPOSED PRESIDENT ARISTIDE TO POWER A SENIOR CLINTON AIDE SAYS BUT CONGRESS ALREADY PRESSED FOR 18 BILLION IN RUSSIAN AID COULD BALK THE US WOULD ALSO HAVE TO PROVIDE A QUICK 100 MILLION TO SUPPORT PEACEKEEPING EFFORTS AND EMERGENCY NEEDS IF THE DEAL COLLAPSES CLINTON WILL BE PRESSED BY US BLACK LEADERS AND OTHERS TO STEP UP PRESSURE ON HAITI'S RULING MILITARY SOME ALREADY URGE TIGHTENING THE US ECONOMIC EMBARGO OF HAITI WHICH ALLIES SUCH AS FRANCE IGNORE FAILURE COULD UNLEASH A NEW WAVE OF HAITIAN IMMIGRANTS WHOM THE US SEEKS TO BLOCK DESPITE CLINTON'S CAMPAIGN PROMISE TO ALLOW MORE ACCESS WHITE HOUSE HINTS THAT THE PENTAGON WILL HELP TRAIN HAITI'S ARMY ALSO RAISE CONCERNS ABOUT US INVOLVEMENT MINOR MEMOS MIFFED AT NOT BEING KEPT INFORMED ON RUSSIAN AID SEN LEAHY WHO HEADS A FOREIGN AID SUBCOMMITTEE ISSUES A PRESS RELEASE THAT BEGINS I HAVE LEARNED FROM THE JAPANESE PRESS THAT PRESIDENT CLINTON IS CONSIDERING THE DINNER COMMITTEE FOR THE LIBERTARIAN CATO INSTITUTE'S CELEBRATION OF ITS NEW WASHINGTON HEADQUARTERS INCLUDES FORMER JUNKBOND KING AND EXCONVICT MICHAEL MILKEN 9304160077 930416 LETTERS TO THE EDITOR INTERNATIONAL TRADE AND THE COLOR GREEN JAGDISH BHAGWATI'S MARCH 19 EDITORIALPAGE ARTICLE ENVIRONMENTALISTS AGAINST GATT RAISES SOLID ARGUMENTS AGAINST THE ATTEMPTED STRANGLING OF TRADE RELATIONS BY ENVIRONMENTALISTS HOWEVER MR BHAGWATI IGNORED SOME FUNDAMENTAL OBSERVATIONS THERE IS NO DOUBT THAT THE US MUST BE AGGRESSIVE IN ITS PURSUIT OF ECONOMIC EXPANSION THROUGH VARIOUS TRADE AGREEMENTS IE GATT AND NAFTA GIVEN THE VARIETY OF TRADE AND ECONOMIC UNIONS THAT ARE BEING ESTABLISHED ON EVERY CONTINENT THE US WOULD SUBSTANTIALLY WEAKEN ITS ECONOMIC STRENGTH AND POSITION AS A WORLD LEADER IF LAWS ENCOURAGING PROTECTIONISM WHETHER OR NOT THEY ARE ENVIRONMENTALLY FOUNDED WERE PASSED HOWEVER ENVIRONMENTAL ISSUES THAT ARE ADDRESSED IN CONJUNCTION WITH THESE AGREEMENTS CANNOT BE DISMISSED MERELY AS MORALITYDRIVEN' TRADE RESTRICTIONS THE US ALONG WITH EVERY NATION MUST SET CERTAIN LIMITS CERTAIN STANDARDS TO WHICH MANUFACTURERS AND PRODUCERS MUST ADHERE AND FOR WHICH THEY MUST BE ACCOUNTABLE IN PURSUIT OF ECONOMIC AND FINANCIAL GROWTH NOT ALL NATIONS COULD BE FORCED TO FOLLOW THE SAME REGULATIONS BUT THE TRADEOFF BETWEEN ECONOMIC GROWTH AND ENVIRONMENTAL DECLINE MUST BE EXAMINED A LONGTERM PERSPECTIVE MUST BE TAKEN TO ENSURE THAT DEVELOPMENT AND EXPANSION TODAY DO NOT LEAD TO RUIN AND WASTE TOMORROW ISSUES SUCH AS THE DESTRUCTION OF THE BRAZILIAN RAIN FORESTS OF WATER SUPPLIES AND OF ENDANGERED SPECIES MUST BE TAKEN INTO CONSIDERATION THESE ARE ISSUES THAT EVENTUALLY MAY AFFECT ALL OF US IF EXAMINING ENVIRONMENTAL CONCERNS IS MORAL REGULATION OR INTERFERENCE WHERE DO YOU DRAW THE LINE BETWEEN WASTEFUL PRACTICES AND MORE DIRECT ABUSE OF A POPULATION OR NATION THE ANSWER TO THIS QUESTION IS AT THE VERY BEGINNING WHILE NO ISSUE ENVIRONMENTAL OR OTHERWISE SHOULD BE USED AS AN IMPEDIMENT TO FREE TRADE AND THE CREATION OF FREE TRADE AGREEMENTS THERE ARE MANY FACTORS THAT MUST BE CONSIDERED AS THESE AGREEMENTS ARE BEING ESTABLISHED OUR ENVIRONMENT IS ONE OF THEM AS ALWAYS PROF BHAGWATI WRITES WITH CLARITY AND INSIGHT IN ADDRESSING THE ENVIRONMENTALISTS' DISENCHANTMENT WITH GATT RULINGS IN THE TUNADOLPHIN CASE AND ITS PROCEDURES REGARDING ANTIDUMPING REGULATIONS HOWEVER HE OMITS WHAT IS PERHAPS THE MOST FUNDAMENTAL REASON FOR THE HOSTILITY SHOWN BY MANY ENVIRONMENTALISTS TO GATT GATT'S PRESCRIPTION OF OPEN MARKETS AND UNDISTORTED PRICES IF FOLLOWED PROMOTES ECONOMIC GROWTH AND ECONOMIC GROWTH CAUSES POLLUTION IN THE CONTEXT OF NORTHSOUTH ECONOMIC RELATIONS KEEPING MARKETS IN INDUSTRIAL COUNTRIES CLOSED TO PRODUCTS IN WHICH DEVELOPING COUNTRIES HAVE A COMPARATIVE ADVANTAGE MAY KEEP MEXICANS AND MALAYSIANS POOR BUT THAT IS A SMALL PRICE TO PAY IN ORDER FOR AMERICAN AND GERMAN GREENS TO FEEL VIRTUOUS ABOUT THEIR CONCERN FOR THE ENVIRONMENT 9304160076 930416 FINANCING BUSINESS CONSOLIDATED NATURAL GAS CO CONSOLIDATED NATURAL GAS CO SAID IT WILL REDEEM AN AGGREGATE OF 682 MILLION PRINCIPAL AMOUNT OF ITS SENIOR DEBENTURES THE REDEMPTION DATE IS JUNE 1 THE PITTSBURGH PRODUCER AND DISTRIBUTOR OF NATURAL GAS SAID CNG SAID THE FOLLOWING SERIES OF SENIOR DEBENTURES WILL BE REDEEMED 126 MILLION PRINCIPAL AMOUNT OF ITS 7 7/8 DEBENTURES DUE DEC 1 1995 TO BE REDEEMED AT A PRICE OF 100680 PER 1000 PRINCIPAL AMOUNT 186 MILLION PRINCIPAL AMOUNT OF ITS 8 1/8 DEBENTURES DUE JUNE 1 1997 TO BE REDEEMED AT A PRICE OF 101290 PER 1000 PRINCIPAL AMOUNT 72 MILLION PRINCIPAL AMOUNT OF ITS 8 1/4 DEBENTURES DUE NOV 1 1994 TO BE REDEEMED AT A PRICE OF 100350 PER 1000 PRINCIPAL AMOUNT 112 MILLION PRINCIPAL AMOUNT OF ITS 8 3/8 DEBENTURES DUE MAY 1 1996 TO BE REDEEMED AT A PRICE OF 100720 PER 1000 PRINCIPAL AMOUNT AND 186 MILLION PRINCIPAL AMOUNT OF ITS 8 3/8 DEBENTURES DUE SEPT 1 1996 TO BE REDEEMED AT A PRICE OF 101330 PER 1000 PRINCIPAL AMOUNT 9304160075 930416 FOREIGN EXCHANGE DOLLAR DECLINES AGAINST YEN ON REPORT THAT JAPAN WILL LET ITS CURRENCY RISE BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MOSTLY HIGHER BUT IT FELL AGAINST THE YEN ON A PUBLISHED REPORT JAPAN'S PRIME MINISTER WOULD SUPPORT CONTINUED FIRMING OF THE JAPANESE CURRENCY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16055 MARKS UP FROM 15935 MARKS LATE WEDNESDAY THE DOLLAR WAS CHANGING HANDS AT 11310 YEN DOWN FROM 11388 YEN STERLING WAS TRADING AT 15415 DOWN FROM 15520 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 16066 MARKS AND AT 11315 YEN THE REPORT PUBLISHED YESTERDAY IN THE WASHINGTON POST CITED JAPANESE OFFICIALS WHO SAID PRIME MINISTER KIICHI MIYAZAWA WILL INDICATE DURING HIS TALKS FRIDAY WITH PRESIDENT CLINTON THAT JAPAN IS WILLING TO ALLOW THE YEN TO RISE IT DID NOT SPECIFY TO WHAT LEVEL OR AT WHAT PACE JAPAN'S POLICY HAS BEEN TO ALLOW A GRADUAL STRENGTHENING OF THE YEN BUT SOME JAPANESE OFFICIALS HAVE COMPLAINED THAT THE YEN'S RECENT SURGE AGAINST THE DOLLAR HAS BEEN TOO RAPID PLAYERS SAID THE REPORT CAME AT A TIME OF CONSIDERABLE UNCERTAINTY IN CURRENCY MARKETS ABOUT WHETHER JAPAN WANTS THE YEN'S RECENT APPRECIATION TO CONTINUE THE REPORT BY ITSELF EXPLAINS WHAT HAPPENED SAID ALFONSO ALEJO A VICE PRESIDENT OF CORPORATE FOREIGN EXCHANGE AT SAKURA BANK LTD ALTHOUGH JAPANESE OFFICIALS DECLINED TO COMMENT ON THE POST REPORT THE MARKET GAVE IT CREDENCE TRADERS SAID AT MIDDAY IN ASIA THE DOLLAR PLUMMETED MORE THAN HALF A YEN WITHIN 15 MINUTES OF WHEN PLAYERS FIRST LEARNED OF THE REPORT LATER THE YEN'S SURGE AGAINST THE DOLLAR BEGAN TO REVERSE AFTER IT RAN INTO TECHNICAL RESISTANCE SHORT OF ITS HISTORIC HIGH AGAINST THE DOLLAR 11260 YEN TO THE DOLLAR TOUCHED ON TUESDAY SAID MIKE SCHEFKE THE CHIEF DEALER AT NATIONAL BANK OF DETROIT ADDITIONALLY UNSUBSTANTIATED RUMORS THE FEDERAL RESERVE BANK OF NEW YORK WAS CHECKING RATES OFTEN A PRELUDE TO INTERVENTION CONTRIBUTED TO THE REVERSAL MR SCHEFKE SAID THE DOLLAR'S RISE AGAINST THE MARK WAS INFLUENCED IN PART BY THE REPORT ABOUT MR MIYAZAWA SAID TERRI REID A CORPORATE ADVISER AT HARRIS TRUST & SAVINGS BANK IN CHICAGO MR MIYAZAWA'S COMMENTS LED INVESTORS TO BUY THE YEN AGAINST A RANGE OF CURRENCIES INCLUDING THE MARK TRADERS SAID AS THE MARK SOFTENED AGAINST THE YEN IT ALSO WEAKENED AGAINST THE DOLLAR LATE IN NEW YORK THE MARK TRADED AT 70445 YEN DOWN FROM 71465 YEN LATE WEDNESDAY OTHER FACTORS ALSO BOOSTED THE US CURRENCY AGAINST THE MARK PLAYERS CONTINUED TO COVER SHORTDOLLAR POSITIONS TAKING PROFITS ON GAINS SCORED IN EUROPEAN CURRENCIES AGAINST THE DOLLAR IN RECENT DAYS MR ALEJO SAID BUT THE MARKET ESSENTIALLY IGNORED COMMENTS FROM THE PRESIDENT OF THE DEUTSCHE BUNDESBANK HELMUT SCHLESINGER THAT GERMAN INTEREST RATES WILL FALL ONLY GRADUALLY BUT OTHER COMMENTS BY MR SCHLESINGER IN HIS HARVARD UNIVERSITY SPEECH DID AFFECT THE SPANISH PESETA TRADERS SAID MR SCHLESINGER SAID THAT IF HIGH INTEREST RATES CAN'T SUPPORT THE WEAKER CURRENCIES IN EUROPE'S EXCHANGE RATE MECHANISM DEVALUATION OF THOSE CURRENCIES MAY BE NECESSARY THE PESETA HAS BEEN UNDER PRESSURE AGAINST THE MARK RECENTLY BECAUSE OF CONCERNS THE HIGH INTEREST RATES NEEDED TO KEEP THE PESETA'S POSITION IN THE EXCHANGE GRID ARE SQUEEZING SPAIN'S ECONOMY DEALERS SAID THAT AHEAD OF NATIONAL PARLIAMENTARY ELECTIONS JUNE 6 THESE CONCERNS HAVE INTENSIFIED MR SCHLESINGER'S COMMENTS BROUGHT OUT NEW SELLING OF THE PESETA FOR THE MARK AND FORCED THE BANK OF SPAIN TO INTERVENE TO SUPPORT THE PESETA TRADERS SAID MADRID TRADERS SAID THE SPANISH CENTRAL BANK SOLD MARKS FOR PESETAS AT 7220 PESETAS LATE IN NEW YORK THE MARK TRADED AT 7225 PESETAS UP FROM 7221 PESETAS IN LATE MADRID TRADING 9304160074 930416 A POT OF MONEY AS CLINTON CONSIDERS A VALUEADDED TAX MICHIGAN RELIES ON IT THE LEVY RAISES A SIZABLE SUM BUT MANY BUSINESSES SAY IT TENDS TO CURB HIRING A LINK TO HEALTHCARE PLANS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL LANSING MICH PRESIDENT CLINTON MAY EVENTUALLY NEED BILLIONS OF DOLLARS TO PAY FOR HIS HEALTHCARE REFORM AND THERE'S TALK IN WASHINGTON ABOUT A NATIONAL VALUEADDED TAX TO RAISE THE MONEY BEFORE DECIDING ANYTHING THOUGH THE PRESIDENT MIGHT WANT TO CHECK WITH SOME PEOPLE IN MICHIGAN WHICH FOR 16 YEARS HAS LEVIED A VAT CALLED THE SINGLE BUSINESS TAX I HATE IT SAYS NOELLE CLARK TREASURER OF HASSELBRINGCLARK CO AN OFFICEEQUIPMENT DEALER HERE IT'S STRICTLY A PENALIZING TAX FOR EMPLOYING PEOPLE MARK OLSON A LANSING ENTREPRENEUR CALLS THE VAT REPUGNANT BUT MORLEY WASSERMANN A TAXPOLICY EXPERT AT DETROIT EDISON CO RATHER LIKES IT IT'S A REALISTIC TAX HE SAYS AN EQUITABLE TAX BUSINESSPEOPLE ARE SO SHARPLY DIVIDED PARTLY BECAUSE THE MICHIGAN TAX STRONGLY FAVORS SOME KINDS OF COMPANIES ESPECIALLY BIG CAPITALINTENSIVE ONES OVER OTHERS AND ANY VALUEADDED TAX DOES MORE THAN THAT IF ONE WERE IMPOSED NATIONALLY IT WOULD DEMAND A NEW WAY OF THINKING ABOUT TAXES BY AMERICANS WHO HAVE LONG BEEN ACCUSTOMED TO STRAIGHTFORWARD LEVIES SUCH AS INCOME OR SALES TAXES IN FACT MUCH OF THE SUPPORT FOR A VAT COMES FROM PEOPLE PUSHING FOR TECTONIC SHIFTS IN THE NATION'S TAX STRUCTURE WE SHOULD MOVE FROM THE CURRENT TAX SYSTEM WHICH PUNISHES INVESTMENT AND SAVINGS AND ENCOURAGES CONSUMPTION TO A CONSUMPTIONBASED TAX THAT REWARDS INVESTMENT AND SAVINGS SAYS SEN JOHN C DANFORTH A MISSOURI REPUBLICAN VATS ARE VIEWED AS CONSUMPTIONBASED BECAUSE THEY ULTIMATELY ARE PASSED ALONG TO CONSUMERS IN THE FORM OF HIGHER PRICES IN FEBRUARY PRESIDENT CLINTON SPOKE GLOWINGLY OF VALUEADDED TAXES AT A CHILLICOTHE OHIO TOWN MEETING MAYBE NOT TOO LONG INTO THE FUTURE AMERICANS WILL DEBATE WHETHER WE WANT TO SHIFT THE NATURE OF OUR TAX SYSTEM HE COMMENTED WHITE HOUSE SPOKESMEN QUICKLY TRIED TO BACK THE PRESIDENT AWAY FROM HIS OWN REMARKS BUT THIS WEEK AFTER TWO ADMINISTRATION OFFICIALS DISCUSSED A POSSIBLE VAT THE WHITE HOUSE ACKNOWLEDGED CONSIDERING SUCH A TAX YESTERDAY ONE TOP HEALTH OFFICIAL DESCRIBED THE VAT AS A SERIOUS OPTION FOR FINANCING THE HEALTH PLAN BUT SEVERAL OFFICIALS WERE QUICK TO ADD THAT IT WAS BEING TAKEN NO MORE SERIOUSLY THAN ABOUT 20 OTHER OPTIONS INCLUDING LESSBROADBASED TAXES SUCH AS LEVIES ON HEALTHINSURANCE PREMIUMS OR ON HEALTHCARE PROVIDERS AND PRESIDENT CLINTON SAID IN FEBRUARY THAT HE DIDN'T PROPOSE A VAT BECAUSE THERE'S ONLY SO MUCH CHANGE A COUNTRY CAN ACCOMMODATE AT THE SAME TIME THE WHITE HOUSE KNOWS THAT A PROPOSAL TO RADICALLY CHANGE THE TAX STRUCTURE COULD RATTLE THE COUNTRY COMING ON TOP OF THE PRESIDENT'S OTHER PROPOSALS TO RAISE TAXES AND REVAMP THE HEALTHCARE SYSTEM OFFICIALS SAID THE WORKING GROUP ADVISING THE HEALTHREFORM TASK FORCE HAS BEEN STUDYING THE IDEA OF A VAT ALL ALONG EVEN AS THE PRESIDENT AND OTHER TOP OFFICIALS SAID PUBLICLY AND PRIVATELY THAT IT WAS UNLIKELY TO BE PROPOSED ONE OFFICIAL SAID IRA MAGAZINER THE WHITE HOUSE AIDE COORDINATING THE HEALTHCARE EFFORT HAD INITIALLY CONSIDERED A VAT TOO CONTROVERSIAL BUT THE OFFICIAL ADDED THAT MR MAGAZINER HAD BEEN STRUCK LATELY BY THE NUMBER OF PEOPLE URGING HIM TO RECONSIDER ASKED BY REPORTERS YESTERDAY MORNING WHY HE HAD CHANGED HIS MIND ABOUT A VAT PRESIDENT CLINTON SAID I HAVEN'T BUT A LOT OF BUSINESS AND LABOR PEOPLE ARE FOR IT ALTHOUGH VATS ARE OFTEN DESCRIBED AS CONSUMPTION TAXES BUSINESSES NOT CONSUMERS ACTUALLY SEND THE MONEY TO THE GOVERNMENT THAT'S BECAUSE A VAT IS IMPOSED ON PRODUCTION AFTER ALL WORK IS WHAT ADDS VALUE THE ADMINISTRATION IS CONSIDERING A TAX ALONG THE LINES OF THE VAT IN FRANCE WHERE VALUEADDED TAXATION ORIGINATED IN 1954 SUCH A TAX WORKS AS FOLLOWS WHEN A BAKERY FOR EXAMPLE BUYS FLOUR A TAX IS ALREADY INCORPORATED IN THE PRICE THE BAKERY PAYS FOR IT THE BAKERY COLLECTS A TAX ON THE BREAD IT SELLS IT THEN SUBTRACTS THE FLOUR TAX FROM THE TAX IT INCORPORATED IN ITS OWN SELLING PRICE AND THE DIFFERENCE IS THE VALUEADDED TAX IN EFFECT THE BAKERY HAS BEEN TAXED ON THE VALUE IT ADDED MOST MICHIGAN RESIDENTS AREN'T AWARE THAT THEY PAY A VARIATION ON THE FRENCH VAT BUT FOR 16 YEARS THE STATE'S SINGLE BUSINESS TAX HAS BEEN COLLECTING 1 BILLION TO 2 BILLION ANNUALLY IN A SIMILAR WAY INSTEAD OF SUBTRACTING TO PUT A PRICE TAG ON THE VALUE A BUSINESS ADDS HOWEVER MICHIGAN USES ADDITION A STAMPING COMPANY SAY TOTALS UP PAYROLL EMPLOYEE BENEFITS PRETAX PROFITS AND EVEN SOME TAXES TO ARRIVE AT THE VALUE IT ADDS TO THE SHEET METAL IT PURCHASES BUSINESSES ANNUALLY FILE THEIR SINGLE BUSINESS TAX RETURNS TO LANSING ALONG WITH A CHECK FOR 235 OF THE VALUEADDED BASE SOUND COMPLICATED IT IS AND THAT'S ONE REASON THE VAT IS SUCH A POLITICALLY PALATABLE WAY OF COLLECTING REVENUE BUSINESSES DUTIFULLY PAY THE TAX AND THEN QUIETLY PASS ON THE COST TO CONSUMERS IN HIGHER PRICES A VAT IS INFLATIONARY BECAUSE IT PUSHES UP MOST PRICES WHEN IT WAS FIRST IMPOSED IN BRITAIN TWO DECADES AGO AND LATER WHEN THE RATE WAS INCREASED THE INFLATION RATE JUMPED AND A VAT IS REGRESSIVE BECAUSE POOR PEOPLE SPEND MOST OF THEIR INCOME BUYING GOODS WHICH COST MORE UNDER A VAT BUT BECAUSE IT'S ALMOST INVISIBLE TO VOTERS MANY POLITICIANS VIEW IT AS A WAY TO SELL SACRIFICE TO A TAXWEARY PUBLIC WHAT'S MORE A VAT IS ATTRACTIVE TO PEOPLE WHO WORRY THAT HIGH INCOME TAXES DISCOURAGE INVESTMENT SENS DANFORTH AND DAVID BOREN AN OKLAHOMA DEMOCRAT HAVE ORGANIZED A WORKING GROUP ON CONSUMPTION TAXES INCLUDING A NATIONAL VAT SUPPORTERS OF THE TAX RANGE FROM SEN ERNEST F HOLLINGS THE SOUTH CAROLINA DEMOCRAT WHO HEADS THE COMMERCE COMMITTEE TO JERRY BROWN THE POPULIST PRESIDENTIAL CANDIDATE WHO PRAISED VATS DURING THE CAMPAIGN THE MAIN APPEAL OF VATS IS THAT THEY PRODUCE A RIVER OF TAX REVENUE A CONGRESSIONAL BUDGET OFFICE STUDY SAYS A RELATIVELY MODEST 5 VAT WOULD ANNUALLY GENERATE 1075 BILLION ROUGHLY EQUIVALENT TO THE 105 BILLION RAISED LAST YEAR FROM CORPORATE INCOME TAXES BUT THE STUDY ADDS THAT MAJOR EXCLUSIONS FOR FOOD HOUSING AND OTHER NECESSITIES EXCLUSIONS FAVORED BY PRESIDENT CLINTON WOULD SHRINK THE TAKE TO 561 BILLION CERTAINLY THE SIZE OF THOSE EXCLUSIONS IS UNDER DISPUTE WITH SOME CRITICS SAYING A VAT IS JUST A REGRESSIVE SALES TAX PASSED ON TO CONSUMERS BY CORPORATIONS ROBERT S MCINTYRE OF THE CITIZENS FOR TAX JUSTICE SAYS A 5 VAT WOULD BE STAGGERINGLY REGRESSIVE TAKING 54 OF THE INCOME OF THE POOREST FIFTH OF THE POPULATION AND ONLY 1 OF THE INCOME OF THE WEALTHIEST FIFTH ON ONE POINT TRADE MANY OPPONENTS AND SUPPOTERS AGREE THEY CONTEND THAT A VAT MIGHT HELP THE US IN EUROPE AND ASIA VATS ARE SLAPPED ON IMPORTED US GOODS BUT WAIVED FOR EXPORTS TO THE US ALLOWING THEM TO BE SOLD HERE AT A DISCOUNT THOUGH JAPAN HAS ONLY A 3 VAT ITALY COLLECTS 19 FRANCE 186 BRITAIN 175 AND GERMANY 14 BASICALLY MANY US COMPANIES WANT A NATIONAL VAT TO LEVEL THE PLAYING FIELD SO THAT A VAT WOULD BE IMPOSED ON US IMPORTS ESPECIALLY CARS AND ELECTRONIC EQUIPMENT AT US BORDERS WITH US IMPORTS RUNNING ABOUT 700 BILLION A YEAR A 5 VAT WOULD RAISE 35 BILLION FROM FOREIGN COMPANIES SAYS DAVID WYSS A SENIOR ECONOMIST AT DRI/MCGRAWHILL A CONSULTING FIRM IN LEXINGTON MASS OTHER COUNTRIES HAVE A VAT AND IF YOU'RE OUT OF STEP WITH YOUR TRADING PARTNERS YOU'RE AT A DISADVANTAGE HE SAYS WITH SO MUCH SUPPORT WHY IS A MODEST 235 VAT IN REVENUEHUNGRY MICHIGAN LOSING PUBLIC SUPPORT AND BEING WHITTLED BACK BY THE GOVERNOR AND LEGISLATURE THERE MUST BE SOME SORT OF A CONSENSUS THAT A TAX IS FAIR AND WE'RE LOSING THAT BATTLE SAYS DOUGLAS B ROBERTS THE STATE TREASURER AND A VAT SUPPORTER BUSINESS IS MOVING MORE AND MORE TO THE STANCE THAT THEY DON'T LIKE THE TAX MANY MICHIGAN BUSINESS LEADERS HAVE CONCLUDED THAT THE SINGLE BUSINESS TAX WHICH REPLACED THE CORPORATE INCOME TAX AND SEVERAL OTHER LEVIES REWARDS SOME BUSINESS ACTIVITIES AND PENALIZES OTHERS IN ODD WAYS IT'S A CONCEPT OF TAXATION SAYS STEVE ARWOOD HEAD OF THE MICHIGAN BRANCH OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THAT IS ESSENTIALLY FOREIGN TO THE BUSINESS MIND MICHIGAN'S TAX ISN'T FULLY COMPARABLE TO THE WASHINGTON PROPOSALS THERE'S NO IMPORT ADVANTAGE THAT ALONG WITH THE QUIRKY WAY IT IS COLLECTED MAKES IT SEEM LIKE A BUSINESS TAX BUT THE EFFECTS OF A NATIONAL VAT ON BUSINESS WOULD BE SIMILAR THE PROBLEM IS THAT A VAT IN MICHIGAN AND ELSEWHERE PLAYS FAVORITES BIG MANUFACTURERS ESPECIALLY THE BIG THREE CAR MAKERS LIKE IT BECAUSE THEIR LARGE OUTLAYS FOR MATERIALS AND MACHINERY ARE PART OF THE BASIC COSTS THAT FALL OUTSIDE OF THE TAX BUT SERVICE COMPANIES RETAILERS AND SMALL BUSINESSES WITH LOW CAPITAL EXPENDITURES AND HIGH LABOR COSTS PAY A DISPROPORTIONATELY BIG SHARE OF THE TAX THAT'S BECAUSE THEIR LABOR COSTS ARE SO MUCH HIGHER AS A PERCENTAGE OF TOTAL SALES FOR INSTANCE COMPANIES IN WHOLESALE AND RETAIL TRADE HAVE LABOR COSTS 59 ABOVE THE AVERAGE FOR ALL US BUSINESSES SAYS VIVIEN SINGER A DRI/MCGRAWHILL ECONOMIST AND EIGHT TIMES HIGHER THAN INDUSTRIES SUCH AS PETROLEUM REFINING WHERE PAYROLLS ARE A RELATIVELY MINOR ITEM IT'S AN ANTIJOB TAX SAYS GEORGE SZTYKIEL OF SPARTAN MOTORS IN CHARLOTTE MICH HE COMPLAINS THAT THE VAT SAYS IN EFFECT HIRE MACHINES NOT PEOPLE INDEED A NATIONAL VAT COULD WORSEN UNEMPLOYMENT SAYS JAMES P KLARR TAX COUNSEL FOR LAZBOY CHAIR CO OF MONROE MICH SAY YOU HAVE DEADWOOD ON YOUR PAYROLL HE POSITS THE IRS IS HELPING YOU PAY FOR HIM BECAUSE YOU'RE GETTING A DEDUCTION FOR TAX PURPOSES BUT WITH A VAT YOU ARE PAYING ALL THE TIME BASED ON YOUR PAYROLL THAT ENCOURAGES YOU TO LAY PEOPLE OFF H DEZI DESITELLE WHO OWNS A GRAND RAPIDS BUSINESS THAT MOVES AND INSTALLS MANUFACTURING MACHINERY SAYS A VAT ENCOURAGES AN EMPLOYER TO HOLD DOWN NOT ONLY JOB ROLLS BUT ALSO PAY RATES THE MORE YOU'RE CREATING WEALTH WITH HIGHPAYING JOBS HE SAYS THE MORE YOU PAY TAX IT'S LIKE A PENALTY FOR CREATING WEALTH IF IT PROMOTES EFFICIENCY OTHERS SAY THE IMPETUS TO TRIM PAYROLLS MAY NOT BE ALL BAD DAVID LITTMANN CHIEF ECONOMIST AT COMERICA INC A DETROITBASED BANK HOLDING COMPANY WITH 266 BILLION IN ASSETS SAYS A NATIONAL VAT WOULD GIVE US AN INCENTIVE TO ELIMINATE LAYERS OF MANAGEMENT ALL THE WAY FROM THE BRANCH LEVEL TO HEADQUARTERS AND INVEST THAT MONEY IN AUTOMATED SYSTEMS INCLUDING EXPANDING THE BANK'S NETWORK OF AUTOMATED TELLER MACHINES COMERICA WHICH HAD 1992 NET INCOME OF 226 MILLION 198 MILLION FROM ITS MICHIGAN OPERATIONS PAID A VAT OF 153 MILLION OR 7 OF PROFITS LAST YEAR THAT'S COMPARABLE TO WHAT MOST MICHIGAN BANKS PAY UNDER THE VAT BUT LESS THAN HALF THE PERCENTAGE OF PROFITS PAID BY SOME MORE LABORINTENSIVE COMPANIES SUCH AS RETAILERS TAKE NATURE NOOK INC A DETROITAREA FLORIST WITH 10 SHOPS AND 3 MILLION IN SALES LAST YEAR BECAUSE OF HIGH LABOR COSTS THE COMPANY PAID 7619 IN VAT OR 24 OF THE 31992 PROFIT IT DECLARED FOR FEDERAL TAX PURPOSES ANTHONY J BREWER PRESIDENT AND PARTOWNER SAYS THAT 1992 WAS NOT A VERY GOOD YEAR TO HAVE THE VAT ON TOP OF A SQUEAKY INCOME IS VERY PAINFUL BUT WHAT IF A COMPANY IS LOSING MONEY UNDER CORPORATE INCOMETAX LAW MONEY LOSERS DON'T PAY TAXES AND MAY GET TAX CREDITS OR LOSS CARRYFORWARDS THAT LIGHTEN FUTURE TAX BILLS IF PROFITS RETURN THAT'S WHAT MAKES REVENUE TO STATE AND FEDERAL COFFERS SINK IN A RECESSION NOT SO UNDER A VAT AS MICHIGAN BUSINESSES LEARNED DURING THE RUST BELT RECESSION OF THE 1980S YOU PAY IN GOOD TIMES OR BAD THE ARGUMENT IS THAT EVEN MONEYLOSING COMPANIES TAKE ADVANTAGE OF TAXSUPPORTED PUBLIC SERVICES THOUGH TAX COLLECTORS FROM MICHIGAN TO MARSEILLE LOVE THIS FAILSAFE QUALITY SOME BUSINESS OWNERS HAVE A DIFFERENT VIEW IF A COW DOESN'T GIVE ANY MILK THERE'S NO USE PULLING ON THE BLOODY UDDER FUMES MR SZTYKIEL OF SPARTAN MOTORS HOW CAN THEY TAX YOU EVEN IF YOU DON'T HAVE ANY MONEY WHY DON'T WE START TAXING THE UNEMPLOYED WHY DON'T WE TAX DEER DESPITE SUPPORT OF MICHIGAN'S VAT BY AUTO MAKERS BANKS AND LARGE MANUFACTURERS ANGER FROM SMALLBUSINESS PEOPLE SERVICEINDUSTRY EXECUTIVES LAWYERS AND DOCTORS HAS CAUSED A SLOW EROSION OF THE TAX'S PROVISIONS IN THE LATE 1970S THE STATE OFFERED TAX CREDITS FOR SOME SMALL BUSINESSES ORIGINALLY BUSINESSES WITH RECEIPTS UNDER 3 MILLION WERE ELIGIBLE THAT GREW TO 6 MILLION IN 1984 AND IS NOW AT 10 MILLION SEPARATELY ALL FIRMS HAVE OBTAINED THE OPTION OF PAYING ONLY A 12 GROSS RECEIPTS TAX SPECIAL TAX REDUCTIONS ARE PROVIDED TO COMPANIES WHERE PAYROLL ACCOUNTS FOR MORE THAN 63 OF THE VALUEADDED TAX BASE AND SOME SMALL BUSINESSES CAN PAY ONLY A 3 CORPORATE INCOME TAX MICHIGAN'S REPUBLICAN GOVERNOR JOHN ENGLER AND MANY LEGISLATORS WANT TO EXPAND SUCH EXEMPTIONS ONE OF THE POLITICAL PROBLEMS WITH A VAT IS IT SAYING LET'S TAX WAGE INCOME MORE AND CAPITAL INCOME A LOT LESS' SAYS R GLENN HUBBARD CHIEF OF TAX ANALYSIS AT THE TREASURY DEPARTMENT UNDER PRESIDENT BUSH ECONOMISTS LIKE IT BUT YOU CAN UNDERSTAND WHY IT'S NOT POPULAR LIKELY GOV ENGLER NOTES THAT HE DIDN'T VOTE FOR THE VAT AS A STATE LEGISLATOR IN THE MID1970S AND SAYS HE EXPECTS TO TINKER WITH IT FURTHER TO BRING IT MORE INTO LINE WITH CORPORATE INCOME TAXES WE CAN GET TO A TAX THAT SPEAKS TO INVESTMENT IN PEOPLE VS INVESTMENT IN MACHINES AND IS MORE SENSITIVE TO PROFITABILITY HE SAYS YET HE ADDS THE VAT IS HERE TO STAY BECAUSE OF THE ENORMOUS RECESSIONPROOF REVENUE STREAM IT PROVIDES THE BOTTOM LINE SAYS RICH STUDLEY OF MICHIGAN'S CHAMBER OF COMMERCE IS THAT A VALUEADDED TAX GENERATES A TON OF MONEY THAT'S BECAUSE THE VAT TAPS INTO SUCH A WIDE POOL OF ECONOMIC ACTIVITY RATHER THAN THE NARROWER STREAM OF CORPORATE PROFITS HIT BY AN INCOME TAX MICHIGAN'S 235 VAT IS THE EQUIVALENT OF ABOUT A 19 CORPORATE TAX RATE ON PROFITS STATE OFFICIALS SAY AND WHILE IT FORCES CONSUMERS TO PAY MORE FOR MOST GOODS MICHIGAN TAX COLLECTORS HAVE FOUND THE VAT MUCH EASIER TO OPERATE THAN A PERSONAL INCOME TAX THE STATE COLLECTS 4 BILLION A YEAR FROM HANDLING 42 MILLION PERSONAL INCOME TAX FORMS BUT HARVESTS NEARLY HALF THAT ABOUT 17 BILLION ANNUALLY FROM PROCESSING ONLY 200000 VAT FORMS BECAUSE OF THE VAT'S CONSTANCY DESPITE ECONOMIC SWINGS OVER 16 YEARS SOME MICHIGAN BUSINESSES HAVE GROWN TO REGARD IT AS A GENERAL FIXED COST WHICH JUST GETS PASSED ALONG TO THE CONSUMER SAYS BRUCE GOOEL AN OWNER OF A SPECIALTY PAINT MAKER IN DETROIT IT'S A COST OF DOING BUSINESS HILARY STOUT IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9304160073 930416 MARKETING & MEDIA NOTED ELECTRONIC PUBLISHING FRANKLIN ELECTRONIC PUBLISHERS INC PLANS TO PUBLISH THE MERCK MANUAL OF MEDICAL SYMPTOMS AND TREATMENT AS AN ELECTRONIC BOOK FOR ITS DIGITAL BOOK SYSTEM 9304160072 930416 WORLD MARKETS TOKYO EQUITIES RISE AS SENTIMENT STAYS POSITIVE THOUGH CAUTIOUS LONDON SHARE PRICES SOFTEN A WALL STREET JOURNAL NEWS ROUNDUP AFTER A CHOPPY SESSION THURSDAY STOCK PRICES IN TOKYO ENDED HIGHER BOOSTED BY A LATE BOUT OF TECHNICALLY DRIVEN BUYING LONDON SHARES SOFTENED IN SUBDUED TURNOVER IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SANK 20691 POINTS WEDNESDAY GAINED 14246 THURSDAY TO 2067584 WHICH ALSO WAS THE INTRADAY HIGH ON FRIDAY IN TOKYO THE NIKKEI INDEX FELL 16324 POINTS TO CLOSE THE MORNING SESSION AT 2051260 FIRST SECTION VOLUME THURSDAY THINNED TO AN ESTIMATED 620 MILLION SHARES FROM 8302 MILLION SHARES A DAY EARLIER ADVANCING ISSUES OUTPACED RETREATING ISSUES 590497 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH FELL 1596 POINTS WEDNESDAY DECLINED 307 TO 158973 SENTIMENT REMAINED POSITIVE BUT BUYERS SET A PRUDENT PACE DEALINGS CENTERED ON ISSUES IN THE NONFERROUS METALS SECTOR AS RIOTING IN SOUTH AFRICA SENT PRICES OF PRECIOUS METALS SKYROCKETING UP ON WORLD MARKETS INVESTORS CONTINUED TO TAKE PROFITS ON OTHER TOKYO SHARES ESPECIALLY LARGECAPITALIZATION ISSUES THAT HAD GAINED AS THE NIKKEI RALLIED TUESDAY ON NEWS OF THE JAPANESE GOVERNMENT'S 132 TRILLIONYEN 11584 BILLION PACKAGE OF MEASURES TO SPUR THE ECONOMY THE NIKKEI BOBBED UP AND DOWN DURING THURSDAY'S SESSION AS PROFITTAKING MET FRESH BUYING AND THE LATE ADVANCE WAS TRIGGERED BY BUYING BY ARBITRAGERS TRADING BASKETS OF STOCKS FOREIGN INVESTORS AND JAPAN'S PUBLIC PENSION FUNDS DIDN'T ENTER THE MARKET AS STRONGLY AS EXPECTED OVERSEAS INVESTORS MANY OF WHOM HAD BEEN OUT FOR SPRING HOLIDAYS ALSO WERE CAUTIOUS BECAUSE OF THE VOLATILE CURRENCY SITUATION AS THE YEN HAS CLIMBED TO POSTWORLD WAR II HIGHS AGAINST THE DOLLAR IN FOREIGNEXCHANGE MARKETS AFTER THE STOCK MARKET CLOSED THURSDAY THE YEN MADE A COMEBACK ON RUMORS OF A NEWS REPORT THAT JAPANESE PRIME MINISTER KIICHI MIYAZAWA WILL TELL US PRESIDENT BILL CLINTON IN A WASHINGTON MEETING TODAY OF HIS ASSENT TO A STRONGER YEN TO HELP STEM JAPAN'S BALLOONING TRADE SURPLUS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLIPPED 24 POINTS TO 28397 THE FT 30STOCK INDEX ROSE 66 POINTS TO 22058 VOLUME WAS 5843 MILLION SHARES DOWN SHARPLY FROM 8178 MILLION SHARES A DAY EARLIER THE MARKET COULDN'T SUSTAIN EARLY GAINS IN THE FEATURELESS SESSION AND INVESTORS RETREATED AFTER WALL STREET HAD A WEAK OPENING AS ANTICIPATED AFTER RECENT GAINS INCREASED EXPOSURE TO TAKING PROFITS SOME LONDON INVESTORS ALSO ADJUSTED POSITIONS IN EXPECTATION OF A QUIET SESSION TODAY BECAUSE OF A BRITISH RAIL STRIKE IN FRANKFURT STOCK PRICES FINISHED MIXED AFTER AN EARLY RALLY FIZZLED IN A LIGHTLY TRADED SESSION THE DAX 30STOCK INDEX EDGED UP 277 POINTS TO 167521 WELL BELOW THE INTRADAY PEAK OF 168355 THOUGH RETREATING ISSUES OUTNUMBERED ADVANCING ISSUES 1612 THE EARLY GAINS STEMMED FROM MILD COVERING OF SHORT OR OVERSOLD POSITIONS INFLUENCED BY STRENGTH IN THE GERMAN BOND MARKET BUT ENTHUSIASM FOR STOCK PURCHASES FADED WHEN BROADER SUPPORT DIDN'T MATERIALIZE PARIS STOCKS SKIDDED UNABLE TO SUSTAIN A RALLY WITH MOST OF THE DECLINES COMING IN THE SESSION'S FINAL TWO HOURS INVESTORS HAD DEFLATED EXPECTATIONS FOR ANOTHER FRENCH INTERESTRATE CUT AFTER THE PRIME MINISTER WARNED THAT TUESDAY'S REDUCTION SHOULDN'T LEAD TO OVERCONFIDENCE IN LENDINGRATE AND CURRENCY MOVEMENTS MOREOVER INVESTORS REMAINED CONCERNED ABOUT GLOOMY PROSPECTS FOR FRENCH CORPORATE EARNINGS AMSTERDAM PRICES GAINED BUOYED BY A HIGHER DOLLAR AND STRENGTH ON BOURSES ABROAD MILAN EQUITIES FELL ON TECHNICAL INFLUENCES RELATED TO SETTLING POSITIONS AHEAD OF TODAY'S END OF A TRADING CYCLE AND ON POLITICAL UNCERTAINTY ABOUT AN ITALIAN REFERENDUM SUNDAY AND MONDAY THAT COULD RESULT IN A NEW GOVERNMENT AND USHER IN SWEEPING CHANGES IN ITALY'S ELECTORAL SYSTEM MADRID SHARES EASED AFTER A LATE RALLY ERASED MUCH OF THE EARLY LOSSES ON MARCH INFLATION DATA FOR SPAIN THAT WASN'T AS GOOD AS EXPECTED IN ZURICH STOCKS OPENED HIGHER ON A RELATIVELY STRONGER DOLLAR BUT RETREATED FOLLOWING WALL STREET'S WEAK OPENING AND FINISHED LOWER HONG KONG SHARES FELL BROADLY WITH UTILITIES BEARING THE BRUNT OF THE LOSSES AS PROFITTAKING TOOK HOLD FOLLOWING THE PREVIOUS SESSION'S HUGE GAINS ON PROSPECTS FOR RESOLVING A SINOBRITISH POLITICAL DISPUTE ABOUT THE TERRITORY IN SYDNEY AFTER A WEEK OF GAINS TO NEW HIGHS STOCK PRICES ENDED MIXED TAIPEI PRICES SOARED IN A TECHNICAL REBOUND SEOUL SHARE PRICES REBOUNDED FROM THE PREVIOUS DAY'S PLUNGE RALLYING ON SPECULATION THAT THE NORTH KOREAN NUCLEAR THREAT WILL BE MET THROUGH DIALOGUE GAINS ACCELERATED ON RUMORS SOUTH KOREAN REGULATORS DENIED ANY INVESTIGATION OF SECURITIES ACCOUNTS TO CRACK DOWN ON TAX EVASION AMONG CORPORATE DEVELOPMENTS IN SYDNEY WESTPAC BANKING JUMPED 8 CENTS OR 25 TO 325 AUSTRALIAN DOLLARS US235 IN HEAVY TRADING AFTER KERRY PACKER CONSIDERED AUSTRALIA'S RICHEST MAN APPARENTLY EXERCISED OPTIONS TO BUY 11 MILLION WESTPAC SHARES AT A274 EACH AFTER TRADING CLOSED WEDNESDAY MR PACKER LAST YEAR BOUGHT JUST UNDER 10 OF WESTPAC THROUGH A COMBINATION OF SHARES AND OPTIONS CONVERTIBLE TO COMMON STOCK WESTPAC HAS ABOUT 177 BILLION SHARES OUTSTANDING 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 9304160071 930416 BUSINESS BRIEF CSX CORP FIRSTPERIOD CHARGE PLANNED TO RESTRUCTURE SEALAND CSX CORP SAID IT WILL RECORD A CHARGE OF 61 MILLION OR 59 CENTS A SHARE FOR THE FIRSTQUARTER TO RESTRUCTURE ITS SEALAND SERVICE INC CONTAINER SHIPPING BUSINESS AS PART OF THE RESTRUCTURING CSX SAID IT WILL LAY OFF 600 OF SEALAND'S 8700 WORKERS BEGINNING NEXT WEEK THE RESTRUCTURING CHARGE MAKES IT LIKELY THAT CSX AN INTERNATIONAL TRANSPORTATION CONCERN BASED IN RICHMOND VA WILL REPORT A LOSS FOR THE FIRST QUARTER THE COMPANY EXPECTS TO REPORT FIRSTQUARTER RESULTS ON APRIL 22 ANALYSTS' PROFIT PROJECTIONS FOR THE FIRST QUARTER RANGE FROM ABOUT 49 MILLION OR 48 CENTS A SHARE TO ABOUT 53 MILLION OR 52 CENTS A SHARE BESIDES THE LAYOFFS THE RESTRUCTURING AT SEALAND INCLUDES ENDING SERVICE AT SOME OF ITS MORE THAN 100 PORTS AND CURTAILMENT OF UNPROFITABLE BUSINESS NET INCOME IN THE YEAREARLIER QUARTER WAS 62 MILLION OR 60 CENTS A SHARE ON REVENUE 21 BILLION THE COMPANY SAID LAST YEAR'S FIRSTQUARTER EARNINGS BENEFITED FROM RECORD COAL SHIPMENTS 9304160070 930416 PIPE MAKERS TOLD BY CALIFORNIA JURY TO PAY DAMAGES BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL A STATE COURT JURY IN SAN DIEGO ORDERED THREE MAKERS OF POLYBUTYLENE PLASTIC PIPE TO PAY 483 MILLION IN PUNITIVE DAMAGES FOR ALLEGEDLY PRODUCING RESIDENTIAL DRINKING WATER SYSTEMS THE COMPANIES KNEW TO BE DEFECTIVE THE DAMAGE AWARD CAME IN THE SECOND PHASE OF THE TRIAL TWO WEEKS AFTER THE JURORS FOUND THE PIPE MAKERS ELJER INDUSTRIES INC'S US BRASS UNIT SHELL OIL CO AND HOECHST CELANESE CORP RESPONSIBLE FOR THE LEAKY SYSTEMS AND GUILTY OF FRAUD ELJER WILL ASK THE JUDGE TO THROW OUT THE VERDICT BEFORE HE ISSUES A FINAL JUDGMENT SAID EDWARD W FORDYCE AN ATTORNEY REPRESENTING THE COMPANY HE ATTRIBUTED THE ADVERSE RULING TO IMPROPER INSTRUCTIONS THE JUDGE GAVE THE JURY AFTER A DEADLOCK DRAGGED ON FOR SEVERAL DAYS THE TRIAL BEGAN NOV 30 ELJER BASED IN DALLAS WILL APPEAL THE VERDICT IF ITS INITIAL STRATEGY ISN'T SUCCESSFUL MR FORDYCE SAID OFFICIALS AND ATTORNEYS AT SHELL A UNIT OF THE NETHERLANDS' ROYAL DUTCH/SHELL GROUP AND AT HOECHST CELANESE A UNIT OF GERMANY'S HOECHST AG COULDN'T BE REACHED LATE YESTERDAY THE CLASSACTION SUIT WAS BROUGHT BY 41 HOMEOWNERS AND THE BUILDER OF THE BRIARWOOD POINTE PROJECT IN SAN DIEGO THE HOMEOWNERS CLAIMED THAT THEY SUFFERED MAJOR FLOODING PROBLEMS CEILING COLLAPSES AND OTHER DAMAGE RESULTING FROM THE DEFECTIVE PLUMBING SYSTEMS THE BUILDER ALSO CLAIMED IT WAS DUPED BY THE PIPE MAKERS IT'S ALMOST IMPOSSIBLE TO INSTALL THESE SYSTEMS IN SUCH A WAY THAT THEY DON'T LEAK SAID BARBARA J ORR AN ATTORNEY FOR THE HOMEOWNERS THE SYSTEMS WERE USED EXTENSIVELY IN SAN DIEGO AND IN OTHER SUNBELT AREAS IN THE EARLY 1980S SHE SAID THERE ARE HUNDREDS OF OTHER LAWSUITS MORE THAN 100 IN SAN DIEGO ALONE SHE SAID A SMALLER GROUP OF SAN DIEGO HOMEOWNERS PREVIOUSLY WON A CASE AGAINST TWO OF THE SAME DEFENDANTS SHE SAID THE BULK OF THE PUNITIVE DAMAGES WERE AWARDED TO THE BRIARWOOD POINTE BUILDER COLE DEVELOPMENT CO A CLOSELY HELD SAN DIEGO COMPANY THE HOMEOWNERS GOT ONLY 317000 AN AMOUNT EQUAL TO THE COMPENSATORY DAMAGES THEY RECEIVED IN THE FIRST PHASE OF THE CASE THE TOTAL PAYOUT IS EXPECTED TO COVER THE HOMEOWNERS' COST OF RIPPING OUT THE BAD PLUMBING AND INSTALLING COPPER SYSTEMS MS ORR SAID COLE HAS FIVE OTHER PROJECTS WITH THIS PRODUCT IN IT SAID BRUCE LORBER A SAN DIEGO ATTORNEY REPRESENTING THE BUILDER ALL DEVELOPERS IN CALIFORNIA IF NOT THE US ARE CONFRONTED WITH THIS LITIGATION HE SAID COLE SETTLED WITH THE BRIARWOOD POINTE HOMEOWNERS BEFORE THE TRIAL FOR ABOUT 200000 WE'RE EXTREMELY PLEASED WITH THE VERDICT AND THE PUNITIVE DAMAGE AWARD WHICH IS LARGE ENOUGH TO SEND A MESSAGE TO THE DEFENDANTS THAT THEY WOULD BE BETTER OFF TO GO OUT AND DEAL WITH THE PROBLEM THAN TO FIGHT IN COURT MS ORR SAID MR LORBER THE BUILDER'S LAWYER ECHOED THOSE SENTIMENTS 9304160069 930416 BUSINESS BRIEF ALEXANDER & BALDWIN INC FIRSTQUARTER NET ROSE 95 BEFORE ACCOUNTING CHANGES ALEXANDER & BALDWIN INC HONOLULU POSTED A 95 GAIN IN FIRSTQUARTER PROFIT EXCLUDING ACCOUNTING CHANGES IN THE YEAREARLIER PERIOD THAT PRODUCED A RESTATED LOSS NET INCOME WAS 18 MILLION OR 39 CENTS A SHARE UP FROM 165 MILLION OR 36 CENTS A SHARE IN 1992'S FIRST QUARTER BEFORE THE RESTATEMENT ACCOUNTING ADJUSTMENTS FOR RETIREMENT BENEFITS AND INCOME TAXES RESULTED IN A LOSS OF 265 MILLION OR 57 CENTS A SHARE FOR THE YEAREARLIER PERIOD REVENUE ROSE 97 TO 1864 MILLION UP FROM 170 MILLION RESULTS WERE STRONG IN ALL SEGMENTS INCLUDING OCEAN SHIPPING AND PROPERTY MANAGEMENT BUT NOT AGRIBUSINESS THE COMPANY CITED SIGNS THAT HAWAII'S ECONOMY IS STRENGTHENING BUT SAID SOME AREAS NOTABLY CONSTUCTION ARE WEAKENING IN NATIONAL OVERTHECOUNTER TRADING ALEXANDER & BALDWIN'S STOCK ROSE 50 CENTS TO 2475 A SHARE 9304160068 930416 BUSINESS BRIEF AGENCY RENTACAR INC FISCAL FOURTHQUARTER NET FELL 54 FROM YEAR EARLIER AGENCY RENTACAR INC SAID IT HAD NET INCOME OF 19 MILLION OR EIGHT CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER ENDED JAN 31 DOWN 54 FROM 42 MILLION OR 17 CENTS A SHARE IN THE YEAREARLIER QUARTER BEFORE A CHARGE OF 23 MILLION OR NINE CENTS A SHARE TO CEASE OPERATIONS IN CERTAIN MARKETS THE CLEVELAND CAR RENTAL CONCERN SAID IT EARNED 43 MILLION OR 17 CENTS A SHARE UNCHANGED FROM THE YEAREARLIER PERIOD AGENCY SAID IT STOPPED RENTING CARS IN NEW YORK STATE AND SOME CITIES IN CALIFORNIA AND MARYLAND BECAUSE OF RISING LIABILITY CLAIMS IN THOSE AREAS FOURTHQUARTER REVENUE WAS 793 MILLION UP 10 FROM 722 MILLION A YEAR AGO THE COMPANY ALSO SAID IT MADE TWO RESTATEMENTS TO EARNINGS IN PAST YEARS WHICH REDUCED ITS BOOK VALUE A TOTAL OF 219 MILLION OR 86 CENTS A SHARE LEAVING BOOK VALUE AFTER THE NONCASH RESTATEMENTS AT 157 MILLION OR 616 A SHARE AT JAN 31 FOR THE YEAR AGENCY HAD NET INCOME OF 168 MILLION OR 66 CENTS A SHARE DOWN 2 FROM 172 MILLION OR 68 CENTS A SHARE A YEAR AGO REVENUE WAS 332 MILLION UP 19 FROM 278 MILLION 9304160067 930416 BUSINESS BRIEF AMR CORP CARRIERS TO ADD 54 FLIGHTS AT DALLAS/FORT WORTH HUB AMERICAN AIRLINES AND ITS AMR EAGLE COMMUTER PARTNER SAID THEY'LL ADD 54 FLIGHTS AT THEIR DALLAS/FORT WORTH HUB THIS SUMMER THE MOVES BY THE TWO AMR CORP UNITS ARE PART OF A PLAN BY THE FORT WORTH TEXAS CARRIER TO BOOST OPERATIONS THAT PERFORM BEST AND ELIMINATE MONEYLOSING FLIGHTS AND ROUTES IN JUNE AND JULY AMERICAN WILL ADD 50 JET FLIGHTS TO 34 CITIES FROM DALLAS/FORT WORTH AND ELIMINATE 21 FLIGHTS TO 13 CITIES AMR EAGLE WILL PICK UP MUCH OF WHAT AMERICAN CUTS IN BEEFING UP DALLAS/FORT WORTH AMERICAN'S LARGEST HUB THE CARRIER IS REALLOCATING RESOURCES WITHIN ITS ROUTE SYSTEM LAST WEEK AMERICAN SAID IT WOULD CUT 40 OF THE FLIGHTS AT ITS SAN JOSE HUB 9304160066 930416 BUSINESS BRIEF HERO GROUP LTD DEFICIT WIDENED SHARPLY IN THE FISCAL THIRD QUARTER BLAMING WEAK RETAIL SALES HERO GROUP LTD REPORTED A WIDER LOSS FOR ITS FISCAL THIRD QUARTER ENDED FEB 28 THE WOMEN'S APPAREL MAKER POSTED A LOSS OF 22 MILLION OR 33 CENTS A SHARE COMPARED WITH A LOSS OF 428000 OR SIX CENTS A SHARE A YEAR EARLIER SALES ROSE 10 TO 291 MILLION FROM 263 MILLION HERO MARKETS APPAREL UNDER LABELS INCLUDING OLEG CASSINI BILL BLASS AND BOB MACKIE BOUTIQUE UNDER LICENSED CONTRACTS IN THE FIRST NINE MONTHS OF FISCAL 1993 NET INCOME PLUNGED TO 11 MILLION OR 16 CENTS A SHARE FROM 7 MILLION OR 119 A SHARE A YEAR EARLIER WHEN THE COMPANY HAD 13 FEWER SHARES HERO HAS ABOUT 67 MILLION COMMMON SHARE OUTSTANDING SALES IN THE NINE MONTHS ROSE 24 TO 1267 MILLION FROM 1023 MILLION A YEAR EARLIER 9304160065 930416 INTERNATIONAL BRIEF FORTE PLC PRETAX EARNINGS LEAP 178 BUT DIVIDEND IS REDUCED FORTE PLC A BRITISH HOTEL CONCERN SAID PRETAX PROFIT SOARED 178 IN FISCAL 1993 BUT THE COMPANY SLASHED ITS DIVIDEND 37 TO 475 PENCE 74 CENTS A SHARE AS PART OF AN EFFORT TO SHORE UP ITS BALANCE SHEET IN THE FISCAL YEAR ENDED JAN 31 PRETAX PROFIT ROSE TO 164 MILLION 2544 MILLION FROM 59 MILLION A YEAR AGO CHAIRMAN ROCCO FORTE SAID THE LOWER DIVIDEND WOULD BE SUSTAINABLE EVEN IF THERE IS NO UPTURN IN TRADING CONDITIONS BUT SHAREHOLDERS ALSO WILL BE OFFERED THE CHANCE TO FORGO THE REDUCED PAYOUT IN EXCHANGE FOR NEW ORDINARY SHARES VALUED AT 50 ABOVE THE DIVIDEND THE SHARE OFFER CONSERVES CASH FOR FORTE AND GIVES SHAREHOLDERS A TAX BENEFIT UNDER NEW UK TAX LAWS GOVERNING DIVIDENDS IN ADDITION FORTE ANNOUNCED PLANS TO FOCUS ITS ENERGIES IN THE US WHERE IT RUNS TRAVELODGE ON THE MOTEL BUSINESS AS A RESULT FORTE PLANS TO SELL ALL OF ITS FULLSERVICE HOTELS IN THE US 9304160064 930416 BUSINESS BRIEF PRATT HOTEL CORP ATLANTIC CITY NJ HOTEL AND CASINO TO BE EXPANDED PRATT HOTEL CORP DALLAS SAID IT PLANS A 15 MILLION EXPANSION OF THE SANDS HOTEL AND CASINO IN ATLANTIC CITY NJ ITS PRIMARY OPERATING PROPERTY A COMPANY SPOKESMAN SAID PRATT HAS FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER FIVE MILLION SHARES OF STOCK AND PLANS TO USE SOME OF THE PROCEEDS OF THE PROPOSED OFFERING TO FINANCE THE EXPANSION THE BALANCE OF THE PROCEEDS WOULD FINANCE A PREFERRED STOCK BUYBACK AND WOULD BE USED FOR WORKING CAPITAL THE SPOKESMAN SAID IN THE FOURTH QUARTER PRATT SAID IT POSTED A LOSS OF 21 MILLION OR 413 A SHARE AFTER A 131 MILLION WRITEOFF OF DESIGNRELATED EXPENSES FROM A FAILED ACQUISITION ATTEMPT COMPARED WITH A YEAREARLIER LOSS OF 74 MILLION OR 147 A SHARE REVENUE FELL 3 TO 628 MILLION THE COMPANY HAD A LOSS OF 324 MILLION OR 638 A SHARE FOR THE YEAR ALMOST DOUBLE THE 1991 LOSS OF 176 MILLION OR 348 A SHARE REVENUE GREW 2 TO 275 MILLION PRATT HASN'T REPORTED AN ANNUAL PROFIT SINCE 1986 9304160063 930416 RULING BY FISH REGULATORS AIDS BIG FACTORY TRAWLERS WASHINGTON FEDERAL FISH REGULATORS REVERSING COURSE HAVE GIVEN A MAJOR BOOST TO THE NATION'S TROUBLED FLEET OF GIANT FACTORY TRAWLERS THE COMMERCE DEPARTMENT REJECTED AN EARLIER RECOMMENDATION FROM A FISHING REGULATORY BODY THAT WOULD HAVE LIMITED THE BIG FACTORY SHIPS TO ABOUT 23 OF THIS YEAR'S QUOTA OF PACIFIC WHITING WHICH IS VALUED AT ABOUT 100 MILLION THE REST WOULD HAVE BEEN RESERVED FOR SMALLER FISHING BOATS THAT HAUL THEIR CATCH TO ONSHORE PROCESSING PLANTS UNDER THE NEW RULING THE FIRST 112000 TONS OF WHITING WILL BE OPEN TO WHOEVER CAN CATCH IT THIS OPENACCESS APPROACH FAVORS THE FACTORY SHIPS WHICH CAN SWIFTLY SWEEP UP TONS OF FISH AND PROCESS THEM ON BOARD A FACTORY TRAWLER TRADE GROUP OFFICIAL ESTIMATED THAT THE TRAWLERS WOULD TAKE UP TO 90 OF THE WHITING CAUGHT UNDER AN OPENACCESS SYSTEM THE NEW RULING SETS ASIDE 30000 TONS OF WHITING FOR THE SMALLER BOATS AND ONSHORE PLANTS MOST OF THOSE ONSHORE PLANTS ARE LOCATED IN OREGON AND OWNED PRIMARILY BY USBASED INVESTORS JOE BLUM EXECUTIVE DIRECTOR OF THE AMERICAN FACTORY TRAWLER ASSOCIATION SAID WE HOPE THIS DECISION SIGNALS A NEW DIRECTION THAT MIGHT GIVE TRAWLERS GREATER ACCESS TO THE COD AND POLLOCK CATCH REPRESENTATIVES OF THE ONSHORE PLANTS COULDN'T BE REACHED TO COMMENT 9304160062 930416 BUSINESS BRIEF OFFICE DEPOT INC COMPANY AGREES TO PURCHASE ASSETS OF STEELCASE INC UNIT OFFICE DEPOT INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO PURCHASE CERTAIN ASSETS OF A STEELCASE INC UNIT THE UNIT WILSON STATIONERY & PRINTING CO IS AN OFFICE SUPPLY AND CONTRACT FURNITURE DEALER BASED IN HOUSTON UNDER THE AGREEMENT OFFICE DEPOT DELRAY BEACH FLA WILL ACQUIRE ALL OF THE ASSETS AND ASSUME CERTAIN OF THE LIABILITIES OF THE OFFICE SUPPLY BUSINESS OFFICE DEPOT A WAREHOUSE OFFICE SUPPLY RETAILER WILL ISSUE COMMON STOCK TO PRIVATELY HELD STEELCASE IN EXCHANGE FOR THE WILSON ASSETS STEELCASE BASED IN GRAND RAPIDS MICH HAS INDICATED THAT WILSON'S CONTRACT FURNITURE BUSINESS IS BEING SOLD SEPARATELY THE PURCHASE PRICE WILL BE BASED ON THE CURRENT PRICE OF OFFICE DEPOT STOCK AND THE ESTIMATED NET BOOK VALUE OF THE ASSETS TO BE PURCHASED THE COMPANY SAID FEWER THAN 500000 SHARES OR LESS THAN 1 OF OFFICE DEPOT COMMON STOCK WILL BE ISSUED FOR THE TRANSACTION IN LATE NEW YORK STOCK EXCHANGE TRADING OFFICE DEPOT SHARES WERE UNCHANGED AT 33625 9304160061 930416 BUSINESS BRIEF CROWN CORK & SEAL CO PACKAGING CONCERN POSTS NET LOSS FOR FIRST QUARTER CROWN CORK & SEAL CO REPORTED A NET LOSS FOR THE FIRST QUARTER AFTER RECORDING CHARGES FOR ADOPTING NEW ACCOUNTING RULES FOR THE QUARTER THE PHILADELPHIA METAL AND PLASTIC PACKAGING MANUFACTURER REPORTED A LOSS OF 363 MILLION OR 43 CENTS A SHARE COMPARED WITH NET INCOME OF 264 MILLION OR 30 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES INCREASED 88 TO 9131 MILLION FROM 8394 MILLION THE COMPANY RECORDED A CHARGE OF 892 MILLION OR 106 A SHARE RELATED TO CHANGES IN ACCOUNTING FOR POSTRETIREMENT HEALTH BENEFITS THE COMPANY ALSO REPORTED A GAIN OF 235 MILLION OR 28 CENTS A SHARE FROM CHANGES IN INCOME TAX ACCOUNTING EXCLUDING THE ACCOUNTING CHANGES CROWN CORK'S INCOME WAS 294 MILLION OR 35 CENTS A SHARE A COMPANY SPOKESMAN SAID THE INCREASE IN REVENUE STEMMED FROM THE ACQUISITION OF CONSTAR INTERNATIONAL A PLASTICS CONCERN LAST FALL 9304160060 930416 BUSINESS BRIEF COLTEC INDUSTRIES INC AUTOMOTIVE AEROSPACE FIRM POSTS PROFIT FOR FIRST QUARTER COLTEC INDUSTRIES INC POSTED A PROFIT FOR ITS FISCAL FIRST QUARTER COMPARED WITH A LOSS A YEAR EARLIER BUT SAID THE OUTLOOK FOR THE YEAR REMAINS MIXED FOR THE QUARTER ENDED APRIL 4 NET INCOME WAS 172 MILLION OR 25 CENTS A SHARE COMPARED WITH A NET LOSS OF 27 MILLION OR 11 CENTS A SHARE SALES INCREASED SLIGHTLY TO 3399 MILLION FROM 3376 MILLION THE NEW YORK CONCERN WHICH SERVES THE AUTOMOTIVE AEROSPACE AND OTHER INDUSTRIAL MARKETS SAID PROBLEMS IN THOSE MARKETS WERE AFFECTING ITS OUTLOOK COLTEC SHARES CLOSED AT 16375 DOWN 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9304160059 930416 BUSINESS BRIEF WESTERN WASTE INDUSTRIES FIRM WILL TAKE CHARGES FOR WRITEDOWNS OF ASSETS WESTERN WASTE INDUSTRIES SAID IT EXPECTS TO TAKE PRETAX CHARGES OF 182 MILLION FOR ITS THIRD QUARTER ENDED MARCH 31 FOR WRITEDOWNS OF VARIOUS LANDFILLS AND DEVELOPMENT PROJECTS THE COMPANY SAID IN LOS ANGELES THAT THE CHARGES WILL RESULT IN A LOSS FOR THE QUARTER EVEN AFTER A 28 MILLION PRETAX GAIN ON THE RECENT SALE OF ITS STAKE IN BEST PAK DISPOSAL INC AN INDUSTRIAL WASTE CONCERN WESTERN WASTE SAID ITS QUARTERLY RESULTS ARE EXPECTED EARLY NEXT MONTH IN THE YEAREARLIER QUARTER THE COMPANY POSTED A LOSS OF 52 MILLION OR 37 CENTS A SHARE AFTER CHARGES ON REVENUE OF 567 MILLION THE COMPANY PROVIDES WASTE COLLECTION RECYCLING AND DISPOSAL SERVICES FOR COMMERCIAL INDUSTRIAL AND RESIDENTIAL CUSTOMERS 9304160058 930416 BUSINESS BRIEF CONSOLIDATED FREIGHTWAYS INC UNIT WINS POSTAL CONTRACT AFTER CHALLENGING AWARD EMERY WORLDWIDE A UNIT OF CONSOLIDATED FREIGHTWAYS INC OF PALO ALTO CALIF SAID IT WON A 10YEAR 880 MILLION US POSTAL SERVICE CONTRACT PREVIOUSLY AWARDED TO A COMPETITOR WHO WAS ACCUSED OF IMPROPER DEALINGS IN LANDING IT THE AWARD CAPS A SIXMONTH FRACAS PITTING AIRFREIGHT CARRIER EMERY AGAINST POSTAL AIR INC A SUBSIDIARY OF KITTY HAWK AIR CARGO INC DALLAS EMERY CHALLENGED THE CONTRACT AWARD TO POSTAL AIR AND A WASHINGTON DC FEDERAL COURT JUDGE VOIDED THE AWARD CITING CONFLICTS OF INTEREST IN THE BIDDING PROCESS BETWEEN A POSTAL SERVICE CONSULTANT AND A CURRENT POSTAL AIR OWNER THE NEW CONTRACT WAS PART OF A SETTLEMENT OF THAT LAWSUIT ALSO INCLUDED IN THE SETTLEMENT WERE PAYMENTS TO KITTY HAWK TOTALING 185 MILLION 10 MILLION FROM THE POSTAL SERVICE AND 85 MILLION OVER 10 YEARS SAID KITTY HAWK PRESIDENT TOM CHRISTOPHER THE CONTRACT FOR EXPEDITED MAIL DELIVERIES TAKES EFFECT NEXT JANUARY REPLACING AN EXISTING CONTRACT FOR THE SERVICE HELD BY EMERY 9304160057 930416 BUSINESS BRIEF ONEX CORP FIRM'S PARTNERSHIP BUYS RJ TOWER CORP ONEX CORP TORONTO SAID ITS 80OWNED HIDDEN CREEK INDUSTRIES PARTNERSHIP ACQUIRED RJ TOWER CORP A CLOSELYHELD METAL STAMPING AND ASSEMBLY CONCERN FOR 30 MILLION CANADIAN DOLLARS US238 MILLION HIDDEN CREEK WILL TAKE ON C20 MILLION OF NEW DEBT TO COMPLETE THE TRANSACTION AND COVER C23 MILLION OF THE REMAINING COST WITH ONEX CONTRIBUTING C77 MILLION IN EXCHANGE FOR AN INITIAL 76 STAKE IN TOWER TOWER GREENVILLE MICH HAS ANNUAL REVENUE OF ABOUT C100 MILLION ONEX SAID IT SAID TOWER HAS OPERATIONS IN GREENVILLE AND AUBURN INDIANA ONEX IS A DIVERSIFIED HOLDING COMPANY WITH INTERESTS IN AIRLINE CATERING AND OTHER MANUFACTURING VENTURES ONEX'S PARTNER IN HIDDEN CREEK IS TONY JOHNSON AN AUTO EQUIPMENT MAKER 9304160056 930416 TECHNOLOGY BRIEF SMITHKLINE BEECHAM PLC DRUG MAKER SETTLES DISPUTE WITH GLAXO INVOLVING PATENT ANGLOAMERICAN DRUG GIANT SMITHKLINE BEECHAM PLC LONDON SETTLED A PATENT DISPUTE WITH GLAXO HOLDINGS PLC OVER CERTAIN RIGHTS TO ONE OF GLAXO'S BESTSELLING MEDICINES THE SMITHKLINEGLAXO SPAT STEMMED FROM A QUIRK OF PATENT LAW THAT ALLOWS USE OF A MEDICINE TO BE PATENTED SEPARATELY FROM THE COMPOUND ITSELF GLAXO HAS A PATENT ON ONDANSETRON WHICH IT INVENTED AND MARKETS UNDER THE BRAND NAME ZOFRAN TO PREVENT EMESIS OR VOMITING INDUCED BY CANCER CHEMOTHERAPY SMITHKLINE HOWEVER SOUGHT AND WAS FORMALLY AWARDED USE PATENTS ON ONDANSETRON FOR TREATMENT OF EMESIS BY THE EUROPEAN PATENT OFFICE JEOPARDIZING GLAXO'S ABILITY TO MARKET ZOFRAN IN EIGHT EUROPEAN COUNTRIES AND PROMPTING A SETTLEMENT GLAXO WILL LICENSE FROM SMITHKLINE RIGHTS TO THE USE PATENTS FOR ROYALTY PAYMENTS WHICH ANALYSTS PEGGED AT ABOUT 175 MILLION 272 MILLION A YEAR 9304160055 930416 MARKETING BRIEF AFFILIATED PUBLICATIONS INC FIRM POSTS 1STPERIOD PROFIT AIDED BY BOSTON GLOBE GAINS AFFILIATED PUBLICATIONS INC CITING IMPROVED ADVERTISING REVENUE AT ITS BOSTON GLOBE UNIT REPORTED FIRSTQUARTER EARNINGS OF 56 MILLION OR EIGHT CENTS A SHARE THAT COMPARES WITH A YEAREARLIER NET LOSS OF 103 MILLION OR 15 CENTS A SHARE INCLUDING CHARGES TOTALING 138 MILLION FROM ACCOUNTING CHANGES THE BOSTONBASED PUBLISHING CONCERN SAID REVENUE IN THE LATEST QUARTER ROSE ABOUT 5 TO 1023 MILLION FROM 973 MILLION AFFILIATED'S FIRSTQUARTER RESULTS REFLECTED AN IMPROVED BUSINESS CLIMATE RESULTING IN A HIGHER VOLUME OF BOSTON GLOBE RUNOFPAPER ADVERTISING UP 29 SAID WILLIAM O TAYLOR CHAIRMAN HE ADDED THAT THE GLOBE'S HELPWANTED ADVERTISING ROSE 101 IN THE QUARTER 9304160054 930416 BUSINESS BRIEF WEIRTON STEEL CORP QUARTERLY RESULTS TO INCLUDE AN ACCOUNTING RULE CHARGE WEIRTON STEEL CORP SAID ITS FIRSTQUARTER RESULTS WILL INCLUDE A ONETIME NONCASH CHARGE OF 290 MILLION TO 310 MILLION BEFORE TAXES TO REFLECT ADOPTION OF AN ACCOUNTING RULE REQUIRING ACCRUAL OF RETIREES' HEALTH AND LIFE INSURANCE BENEFITS THE WEIRTON W VA INTEGRATED STEELMAKER SAID THE CONTINUING EFFECT OF THE RULE WILL RESULT IN ADDITIONAL NONCASH EXPENSE OF 4 MILLION TO 5 MILLION A QUARTER BEGINNING IN THE FIRST QUARTER OF 1993 WEIRTON ALSO SAID IT EXPECTS TO RECOGNIZE IN THE FIRST QUARTER NONCASH CHARGES RELATED TO AN EARLY RETIREMENT PROGRAM OF MORE THAN 12 MILLION BEFORE TAXES IN LAST YEAR'S FIRST QUARTER WEIRTON HAD A LOSS OF 47 MILLION OR 19 CENTS A SHARE ON SALES OF 269 MILLION 9304160053 930416 BUSINESS BRIEF MAXUM HEALTH CORP RESTRUCTURING CHARGES LEAD TO LOSS IN FOURTH QUARTER MAXUM HEALTH CORP DALLAS SAID PRETAX CHARGES OF 75 MILLION FROM THE RESTRUCTURING OF ITS MOBILE MAGNETIC RESONANCE IMAGING BUSINESS LED TO A FOURTHQUARTER LOSS OF 74 MILLION OR 256 A SHARE THE LOSS COMPARES WITH YEAREARLIER NET INCOME OF 309000 OR 10 CENTS A SHARE AND CAME DESPITE A 52 INCREASE IN REVENUE TO 137 MILLION FROM 9 MILLION THE COMPANY'S STOCK FELL 52 TO 150 A SHARE LAST MONTH AFTER IT TOLD ANALYSTS IT EXPECTED TO REPORT A SIGNIFICANT LOSS FOR 1992 IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY MAXUM CLOSED AT 1375 A SHARE DOWN 125 CENTS MAXUM SAID IT IS REDUCING THE SIZE OF ITS MOBILE MRI BUSINESS AND NEGOTIATING WITH CREDITORS TO CUT OVERHEAD THE 75 MILLION IN CHARGES INCLUDED EQUIPMENT WRITEDOWNS AND OTHER COSTS ASSOCIATED WITH THE RESTRUCTURING MAXUM WHICH OWNS AND OPERATES MEDICAL DIAGNOSTIC IMAGING CENTERS POSTED A LOSS OF 83 MILLION OR 293 A SHARE FOR 1992 COMPARED WITH A LOSS OF 763000 OR 61 CENTS A SHARE IN 1991 REVENUE GREW 31 TO 451 MILLION FROM 344 MILLION 9304160052 930416 BUSINESS BRIEF DELTA AIR LINES CARRIER TO TAKE 825 MILLION PRETAX CHARGE IN 3RD QUARTER DELTA AIR LINES SAID SAID IT WILL TAKE A PRETAX CHARGE OF 825 MILLION FOR NONRECURRING FLEET RESTRUCTURING EXPENSES A DELTA SPOKESWOMAN SAID THE SIZE OF THE AFTERTAX CHARGE WON'T BE AVAILABLE BEFORE NEXT WEEK WHEN DELTA RELEASES RESULTS FOR ITS FISCAL THIRD QUARTER ENDING APRIL 22 FOR LAST YEAR'S FISCAL THIRD QUARTER DELTA POSTED A LOSS OF 1516 OR 316 A SHARE ON REVENUE OF 281 BILLION ANALYST KEVIN MURPHY OF MORGAN STANLEY ESTIMATES THAT DELTA WILL HAVE A LOSS OF 210 PER SHARE FOR THIS YEAR'S THIRD QUARTER SEPARATELY DELTA ASKED THE US DEPARTMENT OF TRANSPORTATION TO GIVE IT AUTHORITY TO FLY FROM NEW YORK TO LONDON'S HEATHROW AIRPORT 9304160051 930416 BUSINESS BRIEF FUJI HEAVY INDUSTRIES LTD SUBARU SETS LEASING PROGRAM FOR A NEW SUBCOMPACT CAR SUBARU OF AMERICA ANNOUNCED A LEASING PROGRAM FOR ITS NEW IMPREZA SUBCOMPACT CAR EFFECTIVE THROUGH JULY 2 UNDER THE PROGRAM BUYERS CAN GET THE IMPREZA L SEDAN FOR 159 A MONTH FOR 48 MONTHS SEVERAL IMPREZA MODELS ARE INCLUDED IN THE PROGRAM INCLUDING THE SPORT WAGON SUBARU A UNIT OF JAPAN'S FUJI HEAVY INDUSTRIES LTD INTRODUCED THE IMPREZA LINE OF CARS LAST MONTH THE AUTO MAKER HOPES THE ALLNEW MODEL WILL RECAPTURE THE LUSTER THE COMPANY ENJOYED IN THE EARLY AND MID1980S WITH ITS INEXPENSIVE ALLWHEELDRIVE SUBCOMPACTS BUT SALES OF THE NEW CAR HAVEN'T BEEN BRISK THROUGH MARCH 31 SUBARU HAS SOLD 3583 IMPREZAS THE AUTO MAKER PLANS TO EVENTUALLY SELL 60000 IMPREZAS ANNUALLY 9304160050 930416 BUSINESS BRIEF BANKAMERICA CORP FIRM WON'T RETAIN INTEREST IN BAD ASSETS IT PLANS TO SELL BANKAMERICA CORP SAID IT WILL MAINTAIN NO INTEREST IN THE 2 BILLION IN BAD ASSETS IT PLANS TO SELL TO A PARTNERSHIP LED BY MORGAN STANLEY GROUP INC NEW YORK AS ORIGINALLY ENVISIONED UNDER THE DEAL ANNOUNCED IN JANUARY THE BANK SAID IT WILL RECEIVE A HIGHER NET CASH PAYMENT FOR THE ASSETS IN EXCHANGE FOR FORFEITING ANY ROLE REGARDING THEM AFTER THE SALE CLOSES WHICH IS EXPECTED DURING THE CURRENT QUARTER BANKAMERICA DIDN'T SPECIFY HOW MUCH IT WOULD RECEIVE BEYOND THE ESTIMATED 1 BILLION IN PREVIOUSLY ESTIMATED PROCEEDS BUT IT DID SAY THAT NO NEW GOODWILL OR THE DIFFERENCE BETWEEN THE SALE PRICE AND WHAT IT PAID FOR THE ASSETS IN ITS MERGER WITH SECURITY PACIFIC CORP WOULD ARISE ANALYSTS ESTIMATE THE BANK'S BALANCE SHEET WILL CONTAIN SOME 65 BILLION IN GOODWILL AND OTHER INTANGIBLE ITEMS WHEN IT REPORTS FIRSTQUARTER RESULTS SHORTLY 9304160049 930416 WHAT'S NEWS BUSINESS AND FINANCE CLINTON PLANS TO PRESS JAPAN TO INCREASE PURCHASES OF SELECTED US MANUFACTURED GOODS INCLUDING COMPUTERS AND AUTO PARTS WHEN HE MEETS WITH PRIME MINISTER MIYAZAWA TODAY CLINTON IS ALSO EXPECTED TO ASK JAPAN TO INCREASE GOVERNMENT SPENDING MORE THAN IT HAD ANNOUNCED HOME SHOPPING NETWORK'S ABILITY TO BUY APPAREL HAS BEEN CURTAILED BY FACTORING COMPANIES WHO SUSPENDED CREDIT TO SOME OF ITS SUPPLIERS HOME SHOPPING IS THE TARGET OF A FEDERAL PROBE AND SEVERAL CIVIL LAWSUITS APPLE COMPUTER'S PROFIT FELL 18 IN THE LATEST QUARTER TO THE LOW END OF ANALYSTS' EXPECTATIONS REFLECTING THE EFFECTS OF THE PERSONALCOMPUTER PRICE WAR BUT SALES INCREASED BY 15 MORE BIG BANKS POSTED ROBUST FIRSTQUARTER PROFIT AIDED BY FALLING INTEREST RATES FEWER TROUBLED LOANS AND GAINS IN FEE AND RELATED INCOME THE LATEST RESULTS CAME FROM BANKS INCLUDING JP MORGAN PNC AND CONTINENTAL THE BOND MARKET RALLY CONTINUED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND FELL TO 671 A 16YEAR LOW THE DOW JONES INDUSTRIALS EDGED UP 028 POINT TO 345592 THE BIG THREE AUTO MAKERS ARE EXPECTED TO POST COMBINED FIRSTQUARTER PROFITS OF AS MUCH AS 12 BILLION UP FROM 5042 MILLION LAST YEAR REFLECTING STRONGER US SALES OF PROFITABLE TRUCKS AND COSTSAVING MOVES GM FAILED TO PERSUADE A JUDGE TO REDUCE A 101 MILLION PUNITIVE AWARD IN A PICKUP TRUCK CASE MEANTIME TOYOTA AND GM ARE DISCUSSING SELLING GM CARS IN JAPAN UNDER TOYOTA'S NAME DIGITAL EQUIPMENT NAMED FORMER IBM EXECUTIVE EDWARD E LUCENTE TO HEAD WORLDWIDE SALES AND MARKETING COMPLETING AN OVERHAUL OF THE COMPUTER MAKER'S SENIOR MANAGEMENT LOCKHEED WON AN EXTRA 12 BILLION FROM THE AIR FORCE TO COVER RISING COSTS OF THE F22 FIGHTER BUT THE COMPANY WAS TOLD IT MUST LOWER EXPENSES TO PROTECT THE PROGRAM FROM FUNDING CUTS CHARLES SCHWAB REPORTED RECORD FIRSTQUARTER EARNINGS THAT FAR EXCEEDED ANALYSTS' EXPECTATIONS BUT THE BROKERAGE FIRM'S STOCK FELL MORE THAN 8 SUGGESTING ITS BIG RALLY IS OVER TEXAS INSTRUMENTS' PROFIT MORE THAN DOUBLED IN THE LATEST QUARTER THE DEFENSE AND ELECTRONICS CONCERN CITED A STRONG MARKET FOR SEMICONDUCTORS MATSUSHITA ELECTRIC INDUSTRIAL'S LONGTERM DEBT WAS STRIPPED OF ITS TRIPLEA RATING BY MOODY'S THE MOVE AFFECTS ABOUT 74 BILLION OF THE JAPANESE CONSUMER ELECTRONICS MAKER'S DEBT COCACOLA'S RETIRED PRESIDENT DONALD R KEOUGH IS EXPECTED TO BE NAMED CHAIRMAN OF ALLEN & CO THE NEW YORK INVESTMENT BANKING FIRM TOKYO STOCK PRICES ENDED HIGHER THURSDAY THE NIKKEI INDEX GAINED 14246 POINTS TO CLOSE AT 2067584 BRITISH TELECOM SAID IT WON'T OPPOSE AT&T'S APPLICATION TO PROVIDE INTERNATIONAL COMMUNICATIONS SERVICES IN BRITAIN AS LONG AS BT RECEIVES RECIPROCAL ACCESS TO THE US MARKET BONDS LEHMAN BROTHERS TREASURY INDEX 514204 UP 1662 COMMODITIES OIL 2022 A BARREL OFF 18 CENTS DOW JONES FUTURES INDEX 12501 OFF 001 SPOT INDEX 12220 UP 019 DOLLAR 11310 YEN OFF 078 16055 MARKS UP 00120 9304160048 930416 BUSINESS BRIEF HANSON PLC US UNIT'S BEAZER ACQUIRES SOME WATT HOUSING ASSETS HANSON INDUSTRIES THE US UNIT OF HANSON PLC SAID ITS BEAZER HOMES INC AFFILIATE PURCHASED CERTAIN ASSETS OF WATT HOUSING CORP FOR 116 MILLION WATT HOUSING SANTA MONICA CALIF IS A HOME BUILDER WITH PROJECTS IN HAWAII CALIFORNIA NEVADA AND ARIZONA THE PURCHASE INCLUDES 20 DEVELOPMENTS IN CALIFORNIA 17 IN PHOENIX AND SEVEN IN LAS VEGAS WHICH REPRESENT ABOUT 3800 LOTS WATT WILL RETAIN PROJECTS IN HAWAII LAS VEGAS AND CALIFORNIA IN 1992 WATT HOUSING SOLD 949 HOMES VALUED AT 165 MILLION HANSON SAID THE ACQUIRED ASSETS WILL MAKE BEAZER THE 12THLARGEST SINGLEFAMILY HOME BUILDER IN THE US IN 1992 BEAZER SOLD 125 MILLION OF REAL ESTATE IN THE US 9304160047 930416 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED APRIL 8 ACCOUNTED FOR 186 OR AN AVERAGE 545 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 46 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 229 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 395 THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 47 OF PROGRAM TRADING REFLECTED FIRM'S TRADING FOR CUSTOMERS WHILE 229 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 301 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES UBS SECURITIES AND SUSQUEHANNA DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND FIRST BOSTON DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9304160046 930416 BUSINESS BRIEF CURRAGH INC CANADIAN COMPANY EXPECTS CHARGES IN MINE DISASTER CURRAGH INC TORONTO SAID POLICE ADVISED THE COMPANY THAT IT WILL BE CHARGED IN CONNECTION WITH A MINE DISASTER THAT KILLED 26 WORKERS LAST YEAR CURRAGH WHICH HAD PLANNED TO REOPEN THE MINE AND RESUME COAL PRODUCTION SAID THAT IS NOW IMPOSSIBLE CURRAGH SAID IT WILL TURN OVER ANY FUTURE DEVELOPMENT OF THE MINE TO WHOMEVER THE GOVERNMENT OFFICIALS DECIDE SHOULD BE IN CHARGE OF THE PROJECT LAST WEEK CURRAGH FILED FOR COURT PROTECTION FROM CREDITORS AND RECENTLY ANNOUNCED MAJOR PRODUCTION CUTBACKS OF ZINC AND LEAD IN MAY 26 MINERS WERE KILLED IN AN EXPLOSION AT THE WESTRAY COAL MINE IN PICTOU COUNTY NOVA SCOTIA THE COMPANY DIDN'T SAY WHAT CHARGES ARE EXPECTED TO BE LAID 9304160045 930416 BUSINESS BRIEF INTERACTIVE NETWORK INC PROGRAMMING CONCERN GETS LOAN FROM 4 SHAREHOLDERS INTERACTIVE NETWORK INC A PIONEER IN INTERACTIVE TELEVISION PROGRAMMING SAID IT SECURED AN UNSPECIFIED LOAN THAT WILL TEMPORARILY EASE ITS CASH SHORTAGE THE MOUNTAINVIEW CALIF COMPANY UNTIL RECENTLY A HIGHFLIER BECAUSE OF THE PROMISE OF ITS PRODUCTS THIS WEEK POSTPONED A STOCK OFFERING THAT WOULD HAVE HELPED IT BEGIN OFFERING ITS INTERACTIVETELEVISION SERVICES TO SUBSCRIBERS NATIONWIDE RATHER THAN JUST IN THE SAN FRANCISCO AREA A COMPANY SPOKESWOMAN CITED MARKET CONDITIONS FOR THE DELAY IN OVERTHECOUNTER TRADING YESTERDAY THE STOCK CLOSED AT 675 UP 375 CENTS AFTER TRADING AT MORE THAN 15 EARLIER THIS YEAR PROVIDING THE LOAN ARE FOUR SHAREHOLDERS INCLUDING NBC A UNIT OF GENERAL ELECTRIC CORP GANNETT CO RAINBOW PROGRAMMING HOLDINGS INC A UNIT OF CABLEVISION SYSTEMS CORP AND SOMERSET CAPITAL MANAGEMENT INC IN EXCHANGE THE LENDERS RECEIVE COMMON STOCK WARRANTS THAT MAY BE EXERCISED WITHIN 90 DAYS AT 9 PER SHARE 9304160044 930416 BUSINESS BRIEF OSMONICS INC PURCHASE OF AUTOTROL IS SET AT A SLIGHTLY REDUCED PRICE OSMONICS INC SAID IT SLIGHTLY LOWERED THE AMOUNT OF STOCK IT WILL ISSUE TO ACQUIRE AUTOTROL CORP AND THAT THE TWO CONCERNS HAVE ENTERED INTO A DEFINITIVE AGREEMENT UNDER THE AGREEMENT OSMONICS MINNEAPOLIS WILL ISSUE 077 COMMON SHARE FOR EACH OF AUTOTROL'S THREE MILLION SHARES OUTSTANDING GIVING THE ACQUISITION AN INDICATED VALUE OF ABOUT 455 MILLION OSMONICS CURRENTLY HAS SIX MILLION SHARES OUTSTANDING AND WOULD ADD ABOUT 23 MILLION TO THAT IN THE TRANSACTION PREVIOUSLY OSMONICS HAD AGREED TO ACQUIRE AUTOTROL MILWAUKEE ON A 1FOR1 STOCK BASIS LAST MONTH HOWEVER IT REVISED THE AGREEMENT TO 079 SHARE FOR EACH AUTOTROL SHARE AFTER A 3 MILLION EMBEZZLEMENT WAS DISCOVERED AT AUTOTROL BOTH COMPANIES ARE IN THE WATERTREATMENT BUSINESS THE FURTHER REDUCTION WAS BASED ON ADDITIONAL COSTS RELATED TO THE EMBEZZLEMENT OSMONICS SAID THE ACQUISITION IS EXPECTED TO BE COMPLETED IN JUNE OR JULY ON CONDITION OF APPROVAL FROM BOTH COMPANIES' SHAREHOLDERS AND FROM CERTAIN REGULATORS 9304160043 930416 BUSINESS BRIEF DIME SAVINGS BANK OF NEW YORK NET FALLS 38 FIRM BEGINS RIGHTS OFFER AGREES TO A SALE DIME SAVINGS BANK OF NEW YORK REPORTED A 38 DROP IN FIRSTQUARTER EARNINGS BEGAN A RIGHTS OFFERING TO SHAREHOLDERS AND SIGNED AN AGREEMENT IN PRINCIPLE TO SELL ITS EIGHT NEW JERSEY BRANCHES THE THRIFT INSTITUTION SAID NET INCOME FELL TO 5 MILLION OR 22 CENTS A SHARE FROM 81 MILLION OR 35 CENTS A SHARE A YEAR AGO IN THE RECENT QUARTER DIME HAD A GAIN OF 129 MILLION ON THE SALE OF LOANS AND SECURITIES IT REPORTED LOSSES OF 23 MILLION ON SUCH SALES IN THE YEAREARLIER PERIOD THE COMPANY ALSO BEGAN A RIGHTS OFFERING TO HOLDERS OF COMMON STOCK EXPECTED TO RAISE BETWEEN 1485 MILLION AND 1932 MILLION SHAREHOLDERS WILL RECEIVE SUBSCRIPTION RIGHTS TO PURCHASE 11 COMMON SHARES AT 6 EACH FOR EACH SHARE HELD THE BANK ALSO AGREED TO SELL THE EIGHT BRANCHES OWNED BY ITS DIME SAVINGS BANK OF NEW JERSEY SUBSIDIARY TO FIRST FIDELITY BANCORP LAWRENCEVILLE NJ AT A PREMIUM OF 3505 ON THE DEPOSIT BALANCES HELD IN THE BRANCHES AT THE TIME THE TRANSACTION CLOSES THE BRANCHES HAVE ABOUT 342 MILLION IN RETAIL DEPOSITS 9304160042 930416 BUSINESS BRIEF DYLEX LTD TORONTO RETAILER TO OFFER ITS STAKE IN SUZY SHIER LTD DYLEX LTD IN A BID TO BOOST CASH RESERVES SAID IT WILL MAKE A PUBLIC OFFERING FOR ALL OR PART OF ITS CONTROLLING STAKE IN SUZY SHIER LTD A CHAIN OF 229 WOMEN'S CLOTHING STORES IN CANADA THE TORONTO RETAILING CONCERN ALSO SAID SUZY SHIER PLANS TO RAISE ABOUT 20 MILLION CANADIAN DOLLARS US158 MILLION BY ISSUING SHARES FROM ITS TREASURY DYLEX OWNS 501 OF SUZY SHIER WHILE TWO MONTREAL INDIVIDUAL INVESTORS WHO PLAN TO MAINTAIN THEIR HOLDINGS OWN THE BALANCE SUZY SHIER ALSO CONTROLS LA SENZA A CHAIN OF 33 LINGERIE STORES IN CANADA DYLEX HAD A LOSS OF C219 MILLION ON REVENUE OF C19 BILLION IN THE FISCAL YEAR ENDED JAN 30 1993 LAST WEEK THE COMPANY SAID IT WON'T PAY FIRSTQUARTER DIVIDENDS ON ITS THREE CLASSES OF STOCK A MOVE THAT SAVES ABOUT C14 MILLION DYLEX'S CHIEF FINANCIAL OFFICER DAVID POSLUNS SAID IT'S TOO EARLY TO DETERMINE HOW MUCH MONEY THE COMPANY EXPECTS TO RAISE THROUGH THE PUBLIC OFFERING BUT SAID PROCEEDS WILL BE PUT INTO WORKING CAPITAL 9304160041 930416 BUSINESS BRIEF ENCOR INC TALISMAN ENERGY RAISES BID ENCOR DIRECTORS BACK OFFER TALISMAN ENERGY INC SWEETENED ITS OFFER TO ACQUIRE ALL THE SHARES OF ENCOR INC A MOVE THAT SUCCEEDED IN WINNING THE SUPPORT OF ENCOR'S DIRECTORS FOR THE PROPOSED MERGER OF THE TWO OIL AND GAS CONCERNS BASED IN CALGARY ALBERTA UNDER THE NEW BID TALISMAN WOULD ISSUE 146 MILLION NEW COMMON SHARES UP FROM 142 MILLION UNDER THE EARLIER BID GIVING THE OFFER AN INDICATED VALUE OF ABOUT 290 MILLION CANADIAN DOLLARS US230 MILLION THE ORIGINAL BID HAD BEEN VALUED AT ABOUT C268 MILLION TALISMAN WOULD INCREASE THE NUMBER OF ITS SHARES ISSUED TO ENCOR'S COMMON SHAREHOLDERS SO THAT HOLDERS WOULD RECEIVE ONE TALISMAN SHARE FOR EVERY 45 ENCOR SHARES HELD COMPARED WITH ONE SHARE FOR EVERY 60 ENCOR SHARES UNDER THE EARLIER OFFER BUT TALISMAN SAID IT WILL REDUCE THE NUMBER OF SHARES IT WILL OFFER FOR ENCOR CONVERTIBLE PREFERRED SHARES ALL OF WHICH ARE HELD BY BCE INC MONTREAL 9304160040 930416 BUSINESS BRIEF PET INC PENNSYLVANIA OFFICIAL SUES TO BLOCK SALE OF WHITMAN PENNSYLVANIA'S ATTORNEY GENERAL FILED A FEDERAL ANTITRUST SUIT IN PHILADELPHIA TO STOP PET INC'S PLAN TO SELL ITS WHITMAN CHOCOLATE DIVISION TO RUSSELL STOVER CANDIES INC ATTORNEY GENERAL ERNIE PREATE JR CITED PET'S PLANS TO CLOSE WHITMAN'S PHILADELPHIA CHOCOLATE FACTORY AND ARGUED THAT THE PLANNED SALE VIOLATED ANTITRUST LAWS WHILE OUR SUIT MUST BE ARGUED STRICTLY ON ANTITRUST LAW ISSUES I CANNOT AS A RESPONSIBLE PUBLIC OFFICIAL IGNORE THE FACT THAT THIS MERGER WILL PUT 600 PEOPLE IN THE PHILADELPHIA AREA OUT OF WORK IF WE DON'T STOP IT ACCORDING TO THE ATTORNEY GENERAL'S OFFICE RUSSELL STOVER WHICH INVESTIGATORS SAID HAD ABOUT 250 MILLION IN SALES LAST YEAR WOULD CONTROL 45 OF THE MARKET FOR GIFTBOXED CHOCOLATES FOLLOWING THE ACQUISITION OF WHITMAN THE NEXTLARGEST COMPANY WOULD HAVE ABOUT 21 OF THE MARKET THE OFFICE SAID PET DIDN'T RETURN CALLS SEEKING COMMENT CLOSELY HELD RUSSELL STOVER SAID IT WOULDN'T COMMENT ON THE CASE 9304160039 930416 BUSINESS BRIEF MR GASKET CO UNIT TO BE SOLD TO VENTURE IN WHICH PARENT HAS STAKE MR GASKET CO CLEVELAND SAID IT AGREED TO SELL THE ASSETS OF ITS PERFORMANCE GROUP UNIT FOR 285 MILLION AND THE ASSUMPTION OF 15 MILLION IN DEBTS TO A NEWLY FORMED PARTNERSHIP IN WHICH IT HAS A 30 INTEREST THE AUTOMOTIVE AFTERMARKET PARTS MAKER IDENTIFIED THE OTHER PARTNER AS NESCO HOLDINGS INC BUT COMPANY OFFICIALS WEREN'T AVAILABLE TO PROVIDE OTHER DETAILS ABOUT THE PARTNERSHIP'S OWNERSHIP MR GASKET SAID THE PARTNERSHIP PERFORMANCE PARTS CO WOULD CONTINUE TO MAKE AND DISTRIBUTE PRODUCTS WITH THE UNIT'S TRADE NAMES MR GASKET SAID PERFORMANCE GROUP LAST YEAR HAD 50 OF MR GASKET'S SALES AND 34 OF ITS ASSETS AT YEAR END THE COMPANY SAID THE DEAL WOULD PROVIDE IT WITH CASH NECESSARY FOR ITS REORGANIZATION PLAN THE PLAN ALONG WITH THE SALE OF PERFORMANCE GROUP IS CONTINGENT ON BANKRUPTCY COURT APPROVAL 9304160038 930416 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/8 HIGH 2 7/8 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP306 30 TO 119 DAYS 307 120 TO 149 DAYS 308 150 TO 179 DAYS 310 180 TO 264 DAYS 315 265 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 314 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 262 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 302 30 DAYS 302 60 DAYS 302 90 DAYS 304 120 DAYS 305 150 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 720 60 DAYS 731 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 718 60 DAYS 728 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304160037 930416 BUSINESS BRIEF CARTER HAWLEY HALE STORES INC OFFERING OF OVER 100 MILLION IN STOCK IS BEING CONSIDERED CARTER HAWLEY HALE STORES INC LOS ANGELES SAID IT'S CONSIDERING A PUBLIC OFFERING OF MORE THAN 100 MILLION OF COMMON STOCK AT CURRENT PRICES THE OFFERING WOULD INVOLVE AN INDICATED MINIMUM OF EIGHT MILLION SHARES OR 19 OF THE MORE THAN 43 MILLION SHARES THAT WOULD BE OUTSTANDING UPON COMPLETION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE RETAILER'S SHARES FELL 375 CENTS TO 12375 THE COMPANY SAID IT HASN'T YET WORKED OUT AN OFFERING PRICE OR THE NUMBER OF SHARES IT WOULD SELL SUCH AN OFFERING WOULD SLICE THE 70 STAKE CURRENTLY HELD BY CARTER HAWLEY'S NEW CHAIRMAN SAM ZELL TO AT LEAST AS LOW AS 57 MR ZELL'S ZELL/CHILMARK FUND ACQUIRED THE MAJORITY STAKE AS PART OF A DEBTFOREQUITY PLAN THAT ALLOWED THE RETAILER TO EMERGE FROM CHAPTER 11 BANKRUPTCY PROTECTION IN OCTOBER 9304160036 930416 LETTERS TO THE EDITOR FORGET REGULATIONS WE WANT EDUCATION IN HIS MARCH 26 LETTER TO THE EDITOR ON SCHOOL VOUCHERS ALBERT SHANKER WRITES IT WOULD BE SOMEWHAT PERVERSE FOR GOVERNMENTS TO IMPOSE REGULATIONS ON PUBLIC SCHOOLS AND THEN TO GIVE PUBLIC MONEY TO PARENTS WHO WANT TO ESCAPE UNPOPULAR REGULATIONS PERHAPS SOMEONE NEEDS TO REMIND THE EDUCATION ESTABLISHMENT THAT THESE PUBLIC FUNDS WERE PRIVATE FUNDS BEFORE THEY WERE APPROPRIATED I WILL MAKE THE NECESSARY SACRIFICES TO ENSURE THAT MY THREE CHILDREN ARE EDUCATED IN SUCH A WAY AS TO INSTILL THE ETHICAL MORAL AND RELIGIOUS VALUES I BELIEVE THEY WILL NEED AT THE SAME TIME I AM CONFIDENT THEY WILL ALSO RECEIVE SUPERIOR ACADEMIC INSTRUCTION THIS IS NOT A MATTER OF UNPOPULAR REGULATIONS MIGHT IT NOT BE CONSIDERED PERVERSE TO FORCE ME TO PAY FOR BOTH A PUBLIC AND A PRIVATE EDUCATION JUST BECAUSE I INSIST ON MY VALUES BEING TAUGHT 9304160035 930416 BUSINESS BRIEF SEQUOIA SYSTEMS INC HOLDERS SUIT TO BE SETTLED WITH CASH PREFERRED STOCK SEQUOIA SYSTEMS INC SAID IT ENTERED INTO A PRELIMINARY AGREEMENT TO SETTLE THE STOCKHOLDER CLASSACTION SUIT BROUGHT AGAINST IT LAST FALL WHEN IT DISCLOSED IT HAD OVERSTATED REVENUE AND IT RESTATED RESULTS TO SHOW BIG LOSSES UNDER THE AGREEMENT SEQUOIA WILL PAY 21 MILLION IN CASH AND 28 MILLION IN A NEW CONVERTIBLE PREFERRED STOCK TO CERTAIN PLAINTIFFS SEQUOIA A MAKER OF FAULT TOLERANT COMPUTER SYSTEMS BASED IN MARLBOROUGH MASS SAID THE ISSUANCE OF THE CONVERTIBLE PREFERRED COULD RESULT IN 1 MILLION ADDITIONAL COMMON SHARES UPON CONVERSION ADDING TO SEQUOIA'S EXISTING 86 MILLION SHARES NEIL MCMULLAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE SETTLEMENT TOGETHER WITH PREVIOUSLY ANNOUNCED RESTRUCTURING A BANK LINE AND SETTLING LITIGATION WITH ULTIMATE CORP REMOVE SUBSTANTIAL FINANCIAL UNCERTAINTIES WHICH HAVE MADE IT DIFFICULT TO ATTRACT NEW CUSTOMERS THE AGREEMENT IS SUBJECT TO COURT APPROVAL AND PLAINTIFFS' APPROVAL 9304160034 930416 BUSINESS BRIEF IMPERIAL OIL LTD EXXON AFFILIATE WILL CLOSE REFINERY IN BRITISH COLUMBIA IMPERIAL OIL LTD SAID IT WILL PERMANENTLY CLOSE ITS IOCO REFINERY AT PORT MOODY BRITISH COLUMBIA RESULTING IN AN AFTERTAX CHARGE OF 54 MILLION CANADIAN DOLLARS US428 MILLION AGAINST ITS SECONDQUARTER EARNINGS THE 70OWNED SUBSIDIARY OF EXXON CORP REPORTED 1992 NET INCOME OF C195 MILLION ON REVENUE OF C913 BILLION TORONTOBASED IMPERIAL SAID MORE THAN A YEAR AGO THAT IT MIGHT CLOSE ONE OR MORE REFINERIES BECAUSE OF WEAK DEMAND FOR PETROLEUM PRODUCTS IMPERIAL SAID IOCO HAS REFINERY CAPACITY OF 44000 BARRELS A DAY AND EMPLOYS 165 WORKERS IT SAID PRODUCTION WILL HALT IN THE SECOND HALF OF 1994 9304160033 930416 INDIA PANEL CALLS FOR PENALTIES IN STOCK SCANDAL INVESTIGATORS' DRAFT REPORT URGES SPECIAL SCRUTINY AUDITS OF FOREIGN BANKS BY SUMAN DUBEY SPECIAL TO THE WALL STREET JOURNAL NEW DELHI A HIGHLEVEL INDIAN PARLIAMENTARY COMMITTEE ESTABLISHED LAST YEAR TO INVESTIGATE A 14 BILLION SECURITIES SCANDAL IS SET TO RECOMMEND PENALTIES FOR FOREIGN BANKS IMPLICATED IN IT IT ALSO IS LIKELY TO ASK FOR SPECIAL SCRUTINY OF THE IMPLICATED FOREIGN BANKS AND IT WANTS THE GOVERNMENT TO CONSIDER DISALLOWING REMITTANCE OF PROFITS ARISING FROM IRREGULAR SECURITIES TRANSACTIONS AND OTHER MALPRACTICES THESE RECOMMENDATIONS ARE CONTAINED IN A DRAFT REPORT THAT IS BEING CIRCULATED BEFORE FINALIZATION AMONG THE NONPARTISAN COMMITTEE'S 30 MEMBERS AFTER THEIR VIEWS AND SUGGESTIONS ARE INCORPORATED THE COMMITTEE'S CHAIRMAN RAM NIWAS MIRDHA WILL SEND A FINAL REPORT ON THE COMMITTEE'S FINDINGS TO PARLIAMENT BY THE END OF APRIL THE DRAFT REPORT SAYS SPECIAL SCRUTINY BY INSPECTION OFFICERS FROM THE RESERVE BANK OF INDIA INTO ONE OF THE IMPLICATED BANKS RAISES QUESTIONS ABOUT THE BANK'S EARNINGS ATTRIBUTABLE TO SECURITIES TRANSACTIONS THE COMMITTEE FEELS THAT SIMILAR AUDITS SHOULD BE DONE FOR OTHER FOREIGN BANKS AND THAT IN ADDITION TO DISALLOWING PROFIT REMITTANCES ATTRIBUTABLE TO QUESTIONABLE TRANSACTIONS SUITABLE PENALTIES SHOULD BE IMPOSED ON FOREIGN BANKS KEEPING IN VIEW THE EXTENT OF IRREGULARITIES INDULGED IN BY EACH OF THEM FOUR FOREIGN BANKS ANZ GRINDLAYS PLC BANK OF AMERICA NA CITIBANK AND STANDARD CHARTERED BANK PLC WERE AMONG THE BANKS AND FINANCIAL INSTITUTIONS CAUGHT UP IN THE DIVERSION OF BANK AND CORPORATE FUNDS THROUGH BROKERS INTO THE STOCK MARKETS IN ALLEGED VIOLATION OF INDIAN LAW AND BANKING GUIDELINES THE RESERVE BANK OF INDIA ESTIMATES THAT 4374 BILLION RUPEES 141 BILLION IS STILL MISSING FROM THE BOOKS OF THE BANKS CONCERNED CITIBANK A UNIT OF CITICORP DECLINED TO COMMENT AND BANKAMERICA CORP'S BANK OF AMERICA DIDN'T RETURN CALLS SEEKING COMMENT ALL FOREIGN BANKS CONCERNED HAVE GENERALLY DENIED THAT THEY KNOWINGLY VIOLATED INDIA'S GUIDELINES ANZ GRINDLAYS IS A UNIT OF AUSTRALIA'S ANZ BANKING GROUP AND STANDARD CHARTERED BANK IS A UNIT OF STANDARD CHARTERED PLC OF BRITAIN THE COMMITTEE DESCRIBES THE SECURITIES FRAUD AS BASICALLY A DELIBERATE AND CRIMINAL MISUSE OF PUBLIC FUNDS THROUGH VARIOUS TYPES OF SECURITIES TRANSACTIONS WITH THE AIM OF ILLEGALLY SIPHONING OFF THE FUNDS OF BANKS AND PUBLICSECTOR UNDERTAKINGS AND DIVERTING FUNDS TO SELECT BROKERS FOR DEPLOYMENT IN THE SHARE MARKET SOME FOREIGN BANKS THE COMMITTEE NOTES UNDOUBTEDLY PLAYED A MAJOR ROLE THE PARLIAMENTARY COMMITTEE'S DRAFT REPORT CONFIRMS SEVERAL OF THE ALLEGED MISDEEDS OF FOREIGN AND INDIAN BANKS WHICH HAVE BEEN BROUGHT OUT IN FOUR REPORTS PRODUCED BY A TEAM HEADED BY A DEPUTY GOVERNOR OF THE RESERVE BANK R JANAKIRAMAN THE BANKS ARE ALLEGED TO HAVE VIOLATED THE RESERVE BANK'S GUIDELINES IN HANDLING CORPORATE INVESTMENT FUNDS THEIR RECORDS RELATING TO PURCHASES AND SALES OF SECURITIES DON'T MATCH SOME OF THEM ARE SAID TO HAVE DUMMY TRANSACTIONS ON THEIR BOOKS AND THEY DEALT WITH BROKERS IN A MANNER THAT ALLOWED SOME OF THEM TO SUBVERT INTERNAL CONTROL AND SUPERVISION MECHANISMS WITNESSES FROM THE FOUR BANKS THE DRAFT REPORT SAYS WERE EVASIVE IN THEIR REPLIES TO QUERIES FROM COMMITTEE MEMBERS IN ITS ALMOST NINE MONTHS OF SESSIONS THE COMMITTEE ALSO EXAMINED WITNESSES FROM INDIAN BANKS AND FINANCIAL INSTITUTIONS AND GOVERNMENT OFFICIALS WITNESSES APPEARING BEFORE THE COMMITTEE CAN'T COMMENT ON WHAT TRANSPIRED OR ON THE INFORMATION GIVEN IN THE SESSIONS THE COMMITTEE'S INVESTIGATIONS SUGGEST THAT ALTHOUGH THE PROBLEM WORSENED IN 1991 AND 1992 IRREGULARITIES IN SECURITIES TRANSACTIONS AND THE ALLEGED MISUSE OF BANK RECEIPTS RECORDING SUCH TRANSACTIONS DATE BACK TO 1986 IN ADDITION TO CASTIGATING INDIAN BANKS AND FINANCIAL INSTITUTIONS THE COMMITTEE ALSO FINDS FAULT WITH THE FINANCE MINISTRY AS OWNER OF THE NATIONALIZED BANKS FOR NOT MAKING SURE THAT THE BANKS WERE FUNCTIONING EFFICIENTLY PROFITABLY AND WITHIN THE PARAMETERS OF THE POLICIES LAID DOWN 9304160032 930416 DIVIDEND NEWS WILMINGTON TRUST CORP WILMINGTON TRUST CORP WILMINGTON DEL RAISED ITS QUARTERLY DIVIDEND 11 TO 25 CENTS A SHARE FROM 225 CENTS A SHARE PAYABLE MAY 17 TO SHARES OF RECORD MAY 11 THE COMPANY ALSO REPORTED SHARPLY HIGHER EARNINGS AND CITED ITS STRONG FINANCIAL PERFORMANCE AND FAVORABLE OUTLOOK IN RAISING THE DIVIDEND FIRSTQUARTER NET INCOME WAS 197 MILLION OR 53 CENTS A SHARE AGAINST 31 MILLION OR EIGHT CENTS A SHARE IN THE YEAREARLIER PERIOD WHICH INCLUDED A BIG ACCOUNTING ADJUSTMENT FOR RETIREE HEALTH BENEFIT COSTS AND INCOME TAXES 9304160031 930416 GM MAY SHIP ITS CARS TO JAPAN WITH TOYOTA NAME BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP AND TOYOTA MOTOR CORP ARE WORKING ON AN AGREEMENT TO EXPORT GM CARS TO JAPAN WHERE THEY WOULD BE SOLD UNDER THE TOYOTA NAME GM SAID THE AGREEMENT IF FINALIZED COULD INVOLVE THE EXPORT OF 20000 CARS A YEAR TO JAPAN IT IS A SMALL SLICE OF THE MILLIONS OF JAPANESE CARS SOLD ANNUALLY IN THE US BUT IT NONETHELESS WOULD REPRESENT A SIGNIFICANT STEP TOWARD BOLSTERING US AUTO EXPORTS LAST YEAR THE BIG THREE EXPORTED 296000 CARS AND TRUCKS IN TOKYO TOYOTA DECLINED TO COMMENT THE TWO AUTO MAKERS AGREED CONCEPTUALLY TO PURSUE AN AGREEMENT WHEREBY GM WOULD BUILD A TOYOTABADGED RIGHTHAND DRIVE VEHICLE IN THE US FOR SALE BY TOYOTA IN JAPAN GM SAID ALSO DISCUSSED WAS THE SALE OF PARTS AND COMPONENTS THE TENTATIVE AGREEMENT REACHED IN AN APRIL 5 MEETING IN WASHINGTON THAT INCLUDED JOHN F SMITH JR PRESIDENT OF GM AND TATSURO TOYODA PRESIDENT OF TOYOTA COMES ONLY MONTHS AFTER THE TWO AUTO GIANTS APPEARED HEADED FOR A FIGHT OVER CHARGES THAT JAPANESE AUTO MAKERS WERE DUMPING IN THE US BUT MR SMITH PLAYED A KEY ROLE IN PREVENTING THOSE CHARGES FROM BEING FILED AND HE NOW APPEARS TO BE TRYING TO REDUCE THE US'S HUGE AUTOMOTIVE TRADE DEFICIT THROUGH COLLABORATION FEW DETAILS OF THE TENTATIVE AGREEMENT WERE AVAILABLE THE VOLUMES ARE BEING FINALIZED BUT IT COULD REACH 20000 SAID A GM SPOKESMAN IT ISN'T CLEAR WHAT SORT OF CAR MIGHT BE EXPORTED TO JAPAN THE NIHON KEIZAI SHIMBUN A LEADING JAPANESE NEWSPAPER REPORTS THAT STARTING IN 1995 TOYOTA WILL SELL A REMODELED VERSION OF GM'S J CAR THE CHEVROLET CAVALIER AND THE PONTIAC SUNBIRD BUT GM SAID THE CAR MODEL IS UNCERTAIN THE VEHICLE WILL BE MODIFIED WITH TOYOTA'S HELP FOR THE JAPANESE MARKET TO INCLUDE RIGHTHAND DRIVE GM SAID WE DO EXPECT THAT TOYOTA WILL ASSIST US IN DEVELOPING THAT VEHICLE A SPOKESMAN SAID THE TWO AUTO MAKERS HAVE A LONGSTANDING COLLABORATIVE RELATIONSHIP BUT THIS WOULD BE THE FIRST TIME THEY WILL WORK TOGETHER TO SELL SIGNIFICANT NUMBERS OF GM PRODUCTS IN JAPAN AND THE FIRST TIME GM PRODUCTS THERE WOULD BE LABELED TOYOTA IN AUSTRALIA GM BUILDS THE COMMODORE SEDAN WHICH IS ALSO SOLD THERE AS THE TOYOTA LEXCEN IN THE US IT HAS BEEN GM THAT SOLD TOYOTAMADE CARS BADGED WITH GM NAMES IN 1984 AS JAPANESE MARKET SHARE WAS RISING AMID DOUBTS ABOUT US QUALITY GM AND TOYOTA LAUNCHED NUMMI A JOINT VENTURE ASSEMBLY PLANT IN FREMONT CALIF THE NUMMI PLANT PRODUCES TOYOTA COROLLAS THAT ARE MODIFIED AND SOLD BY GM UNDER THE GEO PRIZM NAME THE PLANT'S CAPACITY IS 240000 WELL ABOVE THE 20000 CARS THAT GM MAY EXPORT TO JAPAN GM SAID THE VOLUME OF EXPORTS WON'T BE LARGE ENOUGH TO STOP IT FROM ANY OF ITS PLANNED PLANT CLOSINGS 9304160030 930416 BUSINESS BRIEF GOLDEN WEST FINANCIAL CORP QUARTERLY EARNINGS ROSE 3 AS INTEREST SPREADS NARROWED DESPITE LOAN GROWTH GOLDEN WEST FINANCIAL CORP REPORTED ESSENTIALLY FLAT FIRSTQUARTER PROFIT AS NET INTEREST SPREADS NARROWED THE OAKLAND CALIF THRIFT SAID IT EARNED 716 MILLION OR 112 A SHARE UP 3 FROM 70 MILLION OR 110 A SHARE A YEAR AGO LOAN ORIGINATIONS ROSE 13 TO 15 BILLION BUT SPREADS OR THE DIFFERENCE BETWEEN LENDING RATES AND FUND COSTS FELL TO 248 FROM 279 THE THRIFT SAID THIS NET INTEREST MARGIN WAS HURT BY AN INCREASE IN SHORTTERM INVESTMENTS AND THE DELAYED EFFECT OF ADJUSTABLERATE MORTGAGES FALLING INTO LINE WITH CURRENT INTEREST RATE LEVELS EVEN SO GOLDEN WEST'S ANNUALIZED RETURN ON ASSETS STILL EXCEEDS 1 WHICH IS CONSIDERED STRONG 9304160029 930416 BUSINESS BRIEF CADENCE DESIGN SYSTEMS INC LOSS TOTALING 163 MILLION IS REPORTED FOR 1ST QUARTER CADENCE DESIGN SYSTEMS INC SAN JOSE CALIF POSTED AN UNEXPECTED FIRSTQUARTER LOSS OF 163 MILLION OR 37 CENTS A SHARE INCLUDING A RESTRUCTURING CHARGE OF 135 MILLION OR 23 CENTS A SHARE THE LOSS COMPARES WITH YEAREARLIER NET INCOME OF 97 MILLION OR 21 CENTS A SHARE SALES FELL 22 TO 793 MILLION FROM 1014 MILLION THE SOFTWARE COMPANY SAID IT INTENDS TO BUY BACK AS MANY AS FOUR MILLION ADDITIONAL SHARES OF ITS COMMON STOCK BUT IT DIDN'T SPECIFY A TIME LIMIT NO DETAILS OF THE RESTRUCTURING WERE AVAILABLE BUT CADENCE SAID NO PRODUCTS OR SERVICES WOULD BE AFFECTED 9304160028 930416 CONRAD BLACK FACES OPPOSITION OVER PLAN TO LIFT FAIRFAX STAKE CANBERRA SOME PARLIAMENT MEMBERS FROM AUSTRALIA'S RULING LABOR PARTY HAVE JOINED A CALL FOR THE GOVERNMENT TO REJECT A REQUEST FROM CANADIAN NEWSPAPER PUBLISHER CONRAD BLACK TO RAISE HIS STAKE IN JOHN FAIRFAX HOLDINGS LTD AUSTRALIA'S SECONDBIGGEST NEWSPAPER COMPANY EARLIER THIS WEEK AUSTRALIAN NEWSPAPER LABOR UNIONS OPPOSED MR BLACK'S PROPOSAL TO BUY MORE SHARES IN FAIRFAX MR BLACK OWNS 15 OF FAIRFAX THROUGH HIS BRITISH COMPANY TELEGRAPH PLC HE HAS ASKED THE GOVERNMENT FOR PERMISSION TO RAISE THIS STAKE TO 25 THE US INVESTMENT CONCERN HELLMAN & FRIEDMAN OWNS A 5 NONVOTING INTEREST IN FAIRFAX WHICH PUBLISHES THE SYDNEY MORNING HERALD AGE AND AUSTRALIAN FINANCIAL REVIEW THE LABOR POLITICIANS URGING REJECTION OF THE REQUEST FROM MR BLACK INCLUDE BARRY JONES PRESIDENT OF THE LABOR PARTY THREE MEMBERS OF THE PARTY'S LEFTWING FACTION AND ONE FROM THE CENTERLEFT THEY SIGNED A LETTER CALLING ON TREASURER JOHN DAWKINS TO STOP MR BLACK FROM RAISING HIS FAIRFAX STAKE DAWKINS IS EXPECTED TO RULE ON BLACK'S APPLICATION THIS MONTH THERE HAS BEEN NOTHING TO SUGGEST THE GOVERNMENT'S POLICY OF LIMITING FOREIGN EQUITY IN LOCAL NEWSPAPERS TO AN AGGREGATE 20 HAS CHANGED THE LETTER SAYS AUSTRALIA SHOULD RETAIN CONTROL OF THE MEDIA TO ENSURE ITS CULTURE ISN'T ENTIRELY SWAMPED BY FOREIGN INFORMATION AND ENTERTAINMENT THE POLITICIANS MAINTAIN ADDING THAT ANY EXTRA FUNDING NEEDED BY FAIRFAX CAN BE RAISED IN AUSTRALIA THE DECLINE IN THE QUALITY OF THE AGE AND THE SYDNEY MORNING HERALD SINCE THE CANADIAN INTERESTS TOOK OVER GIVES NO REASON FOR OPTIMISM THAT THE QUALITY WILL NOT BE FURTHER ERODED IF THEY ARE PERMITTED TO STRENGTHEN THEIR CONTROL THE LETTER SAYS 9304160027 930416 LOCKHEED WINS EXTRA FUNDS FOR F22 JOB AIR FORCE ALSO GIVES NOTICE FIRM MUST CUT COSTS TO PROTECT JET PROGRAM BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOCKHEED CORP HAVING WON AN EXTRA 12 BILLION FROM THE AIR FORCE TO COVER THE RISING COST OF DEVELOPING THE F22 FIGHTER JET NOW MUST CUT EXPENSES TO PROTECT THE PROGRAM FROM FUNDING CUTS IN GRANTING LOCKHEED THE ADDED FUNDS EARLIER THIS YEAR THE AIR FORCE TOLD THE COMPANY THAT IT HAS TO PUT TOGETHER AN OVERHEADCONTROL PLAN MICKEY BLACKWELL VICE PRESIDENT AND GENERAL MANAGER OF LOCKHEED'S AERONAUTICAL SYSTEMS UNIT SAID IN AN INTERVIEW MR BLACKWELL SAID THE DEFENSE CONTRACTOR BASED IN CALABASAS CALIF IS ALREADY CONSOLIDATING FACILITIES SUCH AS WIND TUNNELS AND RADAR RANGES BOTH OF WHICH WERE DUPLICATED WHEN IT ACQUIRED GENERAL DYNAMICS CORP'S FIGHTERAIRCRAFT BUSINESS EARLIER THIS YEAR FOR 15 BILLION HE SAID A REVIEW TO FIND FURTHER SAVINGS SHOULD BE COMPLETED IN 60 DAYS WITH ITS ACQUISITION LOCKHEED NOW CONTROLS TWOTHIRDS OF THE F22 PROGRAM BOEING CO CONTROLS THE OTHER THIRD OVER THE SHORT HAUL SENIOR AIR FORCE OFFICIALS HAVE ESTIMATED INTERNALLY THAT LOCKHEED CAN SAVE 100 MILLION TO 200 MILLION IN COSTS BY COMBINING FACILITIES WITH FORMER GENERAL DYNAMICS OPERATIONS THAT MAKE F16 JETS AND HELP DEVELOP THE F22 HOWEVER ONE GOVERNMENT OFFICIAL CLOSE TO THE PROGRAM SAID EVEN THOSE FAIRLY STRAIGHTFORWARD WAYS TO GENERATE SAVINGS ARE UNCLEAR AND ARE BEING WATCHED CLOSELY BUT SUCH CONSOLIDATIONS ONLY SOLVE PART OF THE PROBLEM FOR LOCKHEED MUCH OF THE EXTRA EXPENSE IN THE F22 PROGRAM LAST YEAR CAME FROM CORPORATE OVERHEAD BOTH LOCKHEED AND BOEING HAVE BEEN LOADING MORE SUCH EXPENSES ONTO THE F22 PROGRAM AS THEY HAVE LOST CONTRACTS TO BUILD OTHER AIRCRAFT MISSILES AND MILITARY PRODUCTS A PENTAGON TASK FORCE RECENTLY CONCLUDED THAT THE F22 PROGRAM IS BATTLING A TRIPLE THREAT FROM COST UNCERTAINTIES TECHNICAL HURDLES AND ECONOMIC FACTORS THAT COULD POSE SERIOUS RISK TO THE PROGRAM THAT REPORT BY A DEFENSE SCIENCE BOARD TASK FORCE ASSESSED RISKS TO THE AIR FORCE F22 AND TWO OTHER ADVANCED JETS AMONG THE AREAS OF GREATEST RISK FOR THE F22 THE CONGRESSIONALLY MANDATED REPORT SAID ARE ITS COMPLEX AVIONICS AND SOFTWARE STEALTHY FEATURES AIMED AT MAKING IT HARD TO DETECT ENGINE DURABILITY AND CONTROLLING WEIGHT AND DRAG WHILE NOTING THAT PRESSURE FOR MILITARY SPENDING CUTS IS MOUNTING THE REPORT SAID THAT SLOWING DOWN THE F22 PROGRAM AND CUTTING ITS FUNDING WON'T REDUCE TECHNICAL RISKS AND WILL ACTUALLY INCREASE COSTS COMPARED WITH THE F22 THE REPORT SAID TECHNICAL RISKS FOR AN UPGRADED F/A18 NAVY FIGHTER JET WERE LOWER THE F22 THE AIR FORCE'S LARGEST ACQUISITION PROGRAM IS AN ADVANCED SUPERSONIC AIRSUPERIORITY FIGHTER TO REPLACE THE F15 WHEN A LOCKHEEDLED TEAM WON A COMPETITION TO BUILD THE PLANE IN APRIL 1991 THE AIR FORCE WANTED 11 JETS IN A STARTUP ENGINEERING AND DEVELOPMENT PHASE WITH FIRST FLIGHTS IN 1995 THE AIR FORCE SOUGHT 648 PLANES IN ALL AT A TOTAL COST OF 96 BILLION MORE RECENTLY THOUGH THE NUMBER OF JETS IN THE FIRST PHASE HAS BEEN SCALED BACK TO NINE WITH FIRST FLIGHTS PUSHED BACK A YEAR LOCKHEED'S MR BLACKWELL CONFIRMED NEW AIR FORCE BUDGET FIGURES SHOWING THE COST OF DEVELOPMENT HAS NOW JUMPED TO ABOUT 103 BILLION MR BLACKWELL SAID THAT HE BELIEVES THAT THE F22'S TECHNICAL CHALLENGES AREN'T A PROBLEM AND SAID THAT EXCLUDING THE OVERHEAD PORTION OF COSTS DEVELOPMENT EXPENSES ARE WITHIN 2 OF ORIGINAL TARGETS AN AIR FORCE SPOKESMAN CONFIRMED HIS ASSESSMENT BUT MR BLACKWELL ALSO SAID THAT ANY FAILURE TO LOWER OVERHEAD COSTS AND EVENTUALLY HOLD DOWN PRODUCTION EXPENSES WITH SWEEPING NEW LEAN MANUFACTURING TECHNIQUES WOULD DAMAGE THE F22'S CHANCES TO GET FUNDING IN THE FUTURE OUR CUSTOMERS WOULD NOT BE VERY HAPPY HE SAID ADDING THAT BRINGING DOWN COSTS IS ESSENTIAL FOR US TO STAY IN BUSINESS PRODUCTION ECONOMIES ARE ALSO NEEDED IN OTHER MILITARY PROGRAMS HE SAID THE F22'S LATEST PROBLEM STEMS FROM A HUGE SHORTFALL THAT AROSE IN FISCAL 1993 FUNDING THE PROGRAM CAME UP 750 MILLION SHORT WHEN CORPORATE OVERHEAD ROSE BY 278 MILLION AND CONGRESS CUT THE PROGRAM'S FUNDING BY 285 MILLION THE AIR FORCE HAS SAID TECHNICAL DEVELOPMENT COSTS AND INCREASED PROGRAMMANAGEMENT CHARGES ACCOUNTED FOR ANOTHER 142 MILLION OF THE TOTAL THE COST ROSE EVEN MORE WHEN THE AIR FORCE READJUSTED ITS PLANS TO REFLECT A LONGER DEVELOPMENT PERIOD BRINGING THE TOTAL INCREASE TO 12 BILLION 9304160026 930416 EDUCATION CLINTON PACKAGE FOR SCHOOLS HAS CHANCE TO PASS BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE EDUCATION REFORM PROGRAM TO BE UNVEILED BY THE CLINTON ADMINISTRATION LATER THIS MONTH WILL RESEMBLE THE PLAN THAT STALLED IN CONGRESS LAST FALL WITH ONE BIG EXCEPTION IT WON'T INCLUDE A SCHOOLCHOICE PLAN THE BIGGEST DIFFERENCE BETWEEN THE BILLS IS THAT THIS ONE WILL PASS SAYS MICHAEL COHEN AN EDUCATION DEPARTMENT CONSULTANT WHO IS DEVELOPING THE ADMINISTRATION'S GOALS 2000 PROGRAM THE CLINTON PLAN ESTIMATED TO COST 420 MILLION IN THE FISCAL YEAR STARTING OCT 1 WOULD SET SIX NATIONAL EDUCATION GOALS AND EVENTUALLY CREATE ACADEMIC AND TESTING STANDARDS FOR SCHOOLS JUST LIKE THE PROPOSED LEGISLATION LAST YEAR BUT UNLIKE FORMER PRESIDENT BUSH'S EDUCATION PROPOSALS WHICH WERE MODIFIED ON CAPITOL HILL LAST YEAR THE CLINTON PLAN WON'T CALL FOR SOCALLED SCHOOLCHOICE PLANS WHICH WOULD HAVE ALLOWED FEDERAL DOLLARS TO PAY FOR PRIVATE SCHOOL EDUCATION WITH THE CHOICE CONTROVERSY REMOVED FROM THE DEBATE THE ADMINISTRATION MAY HAVE AN EASIER TIME PASSING ITS PACKAGE BUT SOME OF THE PROPOSED EDUCATION STANDARDS COULD TURN INTO LEGISLATIVE MINEFIELDS JUST AS THEY DID LAST YEAR THE MOST CONTROVERSIAL PROVISIONS CALLED OPPORTUNITY TO LEARN STANDARDS IN THE CLINTON PROPOSAL ARE DESIGNED TO IMPROVE SCHOOL QUALITY THESE STANDARDS WHICH HAVEN'T BEEN DETERMINED YET COULD COVER SUCH THINGS AS STUDENTTEACHER RATIOS GUARANTEES OF TEACHER COMPETENCY AND QUALITY OF EDUCATIONAL FACILITIES FOR MANY DEMOCRATS WHO FAVOR SUCH STANDARDS THAT MEANS MAKING SURE CHILDREN AREN'T LEARNING FROM 10YEAROLD TEXTBOOKS OR SITTING IN OVERCROWDED CLASSROOMS WE DO NOT WANT TO GO TO NATIONAL TESTING UNTIL WE ARE SURE CHILDREN HAVE AN OPPORTUNITY TO LEARN THE MATERIAL SAYS JACK JENNINGS GENERAL COUNSEL TO THE HOUSE EDUCATION AND LABOR COMMITTEE BUT SOME REPUBLICANS WORRY THAT SUCH NATIONAL STANDARDS WOULD COME DANGEROUSLY CLOSE TO LETTING THE FEDERAL GOVERNMENT DICTATE HOW COMMUNITIES SHOULD RUN THEIR SCHOOLS THE BUSH ADMINISTRATION HAD WANTED STATES RATHER THAN THE FEDERAL GOVERNMENT TO DEVELOP SCHOOL STANDARDS EDUCATION SECRETARY RICHARD RILEY ALREADY HAS BEEN BOMBARDED WITH COMPLAINTS ON THIS ISSUE WHEN HE CIRCULATED AN EARLY DRAFT OF THE EDUCATION PLAN ON CAPITOL HILL LAST MONTH HOUSE DEMOCRATS ARGUED THE PROGRAM WASN'T EMPHASIZING THE STANDARDS ENOUGH WHILE REPUBLICANS WANTED THE STANDARDS WEAKENED THE ADMINISTRATION DELAYED INTRODUCING ITS EDUCATION PACKAGE SO IT COULD DEVISE A WAY TO MEET LAWMAKERS' CONCERNS OTHER PARTS OF THE PLAN SHOULD BE MUCH MORE PALATABLE TO REPUBLICANS AND DEMOCRATS ALIKE PRESIDENT CLINTON WANTS TO ENACT INTO LAW THE SIX NATIONAL EDUCATION GOALS WHICH WERE PROPOSED AT A 1989 EDUCATION SUMMIT OF GOVERNORS AS GOVERNOR OF ARKANSAS MR CLINTON PLAYED A LEADING ROLE IN DRAFTING THOSE GOALS WHICH INCLUDE BOOSTING LITERACY AND HIGH SCHOOL GRADUATION RATES ERADICATING DRUGS AND VIOLENCE FROM SCHOOLS AND MAKING AMERICAN STUDENTS THE WORLD'S BEST IN SCIENCE AND MATH THE PRESIDENT ALSO WANTS TO CREATE A SERIES OF ACADEMIC AND TESTING STANDARDS HE WANTS TO CREATE A NATIONAL OPPORTUNITY AND STANDARDS COUNCIL TO DETERMINE WHAT AMERICAN STUDENTS SHOULD KNOW AND DEVISE A WAY TO TEST THEIR KNOWLEDGE THESE NATIONAL STANDARDS WHICH WOULD BE VOLUNTARY COULD TAKE YEARS TO DEVELOP AND ENACT FOR THE FIRST TIME PARENTS AND STUDENTS AND TEACHERS WOULD HAVE A CLEAR SENSE OF WHAT WE EXPECT OF STUDENTS MR COHEN SAYS IT WILL TAKE MOST OF THE 1990S TO DETERMINE WHAT STUDENTS SHOULD KNOW MR JENNINGS SAYS EDUCATORS FROM AROUND THE COUNTRY ARE ALREADY WORKING ON CREATING ACADEMIC STANDARDS AND SO FAR ONLY MATH STANDARDS HAVE BEEN DEVELOPED HE SAYS ONLY WHEN THE ACADEMIC STANDARDS ARE COMPLETE CAN EDUCATORS START DEVELOPING NATIONAL TESTS A PROCESS THAT COULD ALSO BE LENGTHY SAYS MR COHEN WE'RE TRYING TO CREATE SYSTEMIC REFORM A PROCESS NO ONE EXPECTS TO BE QUICK OR EASY 9304160025 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 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 FROM THE BEGINNING HILLARY RODHAM CLINTON HAS POINTED OUT THIS SHORTCOMING SO MUCH SO AIDES SAY THAT RUMORS BEGAN TO SWIRL QUESTIONING HER ALLEGIANCE TO THE ENTIRE MANAGEDCOMPETITION CONCEPT TODAY MRS CLINTON IS TO SPEAK AT A HEALTHCARE CONFERENCE IN NEBRASKA FROM THERE SHE GOES TO MONTANA TO TALK FURTHER WITH NATIVE AMERICAN TRIBAL LEADERS ABOUT PROVIDING HEALTH SERVICES TO RURAL 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 FOR THEIR PART SURGEON GENERALDESIGNATE JOYCELYN ELDERS TREASURY SECRETARY LLOYD BENTSEN AND WHITE HOUSE POLICY ADVISER CAROL RASCOE WHOSE FATHER IS A RURAL PHARMACIST ALSO HAVE VOICED CONCERNS ABOUT HOW MANAGED COMPETITION CAN BE ADOPTED IN RURAL SETTINGS STILL DESPITE THIS SENSITIVITY 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 THE MEETINGS IN THE WEST TODAY AND TOMORROW MRS CLINTON LAST MONTH WENT TO IOWA TO TALK TO FARM BELT RESIDENTS ABOUT HEALTH CARE AND YESTERDAY HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA TRAVELED TO THREE TOWNS IN NORTH DAKOTA TO MEET WITH RESIDENTS 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 THERE'S EVEN A NEW BUZZWORD FOR ADJUSTING THE CLINTON HEALTH PLAN TO FIT INTO RURAL REGIONS 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 ROAD MAP OF WHERE THE TASK FORCE IS LIKELY HEADED ON THIS TOPIC UNDER SUCH A PLAN A SMALL 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 GUARANTEED THAT BASIC LEVEL OF CARE TO HELP 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 MORE SPECIALIZED HEALTH SERVICES THESE WOULD BE LOCATED IN BIGGER TOWNS OR PERHAPS A NEARBY CITY IN AN IDEALIZED SENSE IT'S A HUBANDWHEEL SCENARIO MR MOSCOVICE SAYS THIS SORT OF ARRANGEMENT IS ALREADY UNDER WAY ON A SMALL SCALE IN SEVEN STATES THROUGH THE FEDERALLY FUNDED ESSENTIAL ACCESS COMMUNITY HOSPITAL PROGRAM ONE DIFFICULTY FOR TINY FINANCIALLY TROUBLED RURAL HOSPITALS IS THAT THEY ARE REQUIRED BY STATE LICENSING AND MEDICARE AND MEDICAID REIMBURSEMENT RULES TO PROVIDE A FULL RANGE OF ACUTECARE SERVICES THE ESSENTIAL ACCESS PROGRAM ALLOWS THEM TO BYPASS THOSE RULES AND STILL BE LICENSED AS LONG AS THEY ARE CONNECTED TO ANOTHER FACILITY THAT CAN PROVIDE MOREADVANCED TREATMENT THIS IS AN EFFECTIVE WAY TO USE SCARCE RESOURCES SAYS NANCY BARRAND OF THE ROBERT WOOD JOHNSON FOUNDATION THE FOUNDATION LAST MONTH CONDUCTED A RURAL HEALTHCARE CONFERENCE IN LITTLE ROCK ARK THAT IS SERVING AS THE BASIS FOR MUCH OF WHAT THE ADMINISTRATION IS CONSIDERING FOR ALL THE ADJUSTMENTS THAT NEED TO BE MADE TO MANAGED COMPETITION MR MOSCOVICE AND OTHERS STRESS THAT THE FUNDAMENTAL STRATEGY SHOULD BRING MANY BENEFITS TO RURAL LOCATIONS MOST IMPORTANT UNDER MANAGED COMPETITION EVERYONE WOULD BE GUARANTEED HEALTH COVERAGE THAT'S A BIG PLUS GIVEN THAT THE 27 OF AMERICANS LIVING IN RURAL AREAS ARE DISPROPORTIONATELY POOR AND ELDERLY OTHERS SAY THAT AN ADEQUATE AMOUNT OF COMPETITION CAN BE GENERATED IN MANY AREAS LABELED RURAL OFTEN THESE COMMUNITIES FEED EASILY 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 THAT HAS BEEN INTRODUCED IN CONGRESS REGARDLESS OF WHETHER COMPETITION OR COOPERATION IS BEST FOR A PARTICULAR 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 MANY DOCTORS ARE RELUCTANT TO MOVE TO OUTPOSTS WHERE THEY ARE ISOLATED FROM THEIR COLLEAGUES AND HAVE NO CHANCE OF LEARNING A SPECIALTY LINKAGES TO LARGER FACILITIES SHOULD HELP SOLVE THAT IN ADDITION 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 THEY GRADUATE THE FLIP SIDE WOULD BE TO MAKE CONTINUED FEDERAL SUPPORT FOR MEDICAL SCHOOLS CONTINGENT ON TRAINING AN INCREASED NUMBER OF PRIMARYCARE PROVIDERS WHO ARE CRITICALLY NEEDED IN RURAL AREAS 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 WHO COME INTO RURAL AREAS ANOTHER OPTION IS TO GUARANTEE A HEALTH PLAN THAT SERVES AN OUTOFTHEWAY LOCATION AN EXCLUSIVE FRANCHISE FOR SOME PERIOD STILL ANOTHER POSSIBILITY IS TO MANDATE THAT A HEALTH PLAN SERVE A RURAL AREA IF IT WANTS TO RETAIN ITS MORE LUCRATIVE URBANBASED BUSINESS IN THE END EXPERTS SAY THE SMARTEST THING WOULD BE TO ALLOW THE STATES AND LOCALITIES TO CONSIDER ALL OF THESE OPTIONS AND PICK WHAT MAKES THE MOST SENSE ON A CASEBYCASE BASIS 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 POLITICS & POLICY WHILE SOME POOR URBAN RESIDENTS ASK IF ANYONE AT ALL WILL SERVE THEM WSJ APRIL 16 1993 9304160023 930416 COMMODITIES GOLD AND PLATINUM FUTURES PRICES TURN DOWN UNABLE TO SUSTAIN WEDNESDAY'S SHARP GAINS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD AND PLATINUM FUTURES PRICES RETREATED AMID A RETURN TO RELATIVE CALM IN SOUTH AFRICA TRADERS SAID THE FAILURE OF THE TWO PRECIOUS METALS TO MOVE ABOVE KEY RESISTANCE LEVELS IN TRADING YESTERDAY CAST FURTHER DOUBT ON THEIR ABILITY TO SUSTAIN ANY KIND OF RALLY TRADERS AND ANALYSTS SAID UNFORTUNATELY THE GOLD MARKET CAN'T MAKE UP ITS MIND SAID SCOTT MEYERS AN ANALYST WITH REDEL TRADING IN NEW YORK THE MARKET IS STILL TRYING TO FIND A REASON TO GO HIGHER BUT DOESN'T SEEM TO HAVE ENOUGH TO SUSTAIN A RALLY THEY SHOOK IT OUT PRETTY WELL TODAY GOLD FOR JUNE DELIVERY SLID 250 TO SETTLE AT 33830 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE WHILE PLATINUM FOR JULY DELIVERY DROPPED 120 TO CLOSE AT 36810 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE WEDNESDAY JUNE GOLD CONTRACTS JUMPED 2 AND JULY PLATINUM CONTRACTS SOARED NEARLY 7 ON FEARS OF SUPPLY DISRUPTIONS RESULTING FROM A MASS STRIKE IN SOUTH AFRICA THAT TURNED VIOLENT SOUTH AFRICA IS THE WORLD'S LARGEST PRODUCER OF GOLD GENERATING SOME 600 TONS ANNUALLY FOLLOWED BY THE US WITH AROUND 300 TONS IT IS ALSO THE WORLD'S LARGEST PLATINUM PRODUCER AT 88 TONS A YEAR FOLLOWED BY RUSSIA WITH AN ESTIMATED 31 TONS TRADERS SAID IT WAS CLEAR THAT SOUTH AFRICA'S REMOTE MINING OPERATIONS WEREN'T AFFECTED BY WEDNESDAY'S UPHEAVAL THEY SAID WEDNESDAY'S SURGE IN THE PRECIOUS METALS' PRICES WAS LARGELY AN OVERREACTION IT WAS A BLIP SAID MR MEYERS WEDNESDAY'S CLIMB HAD LED SOME TRADERS TO SPECULATE THAT GOLD SOON WOULD TEST A 342 RESISTANCE LEVEL AND PLATINUM A 373 TO 375 LEVEL PSYCHOLOGICAL INFLUENCES ON THE PRECIOUS METALS MARKETS PASS UNLESS THERE'S SOMETHING TO BACK THEM UP SAID JOE ROSTA RESEARCH DIRECTOR OF CPM GROUP PRECIOUS METALS CONSULTANTS IN NEW YORK HE SAID HOWEVER THAT THE RETREAT IN GOLD AND PLATINUM PRICES YESTERDAY WAS LIMITED IT IS VERY CONSTRUCTIVE FROM A TECHNICAL POINT OF VIEW THAT GOLD IS HOLDING ABOVE 335 AN OUNCE GOLD IS STILL IN STRONG DEMAND BY ASIAN JEWELERS AND OTHER INDUSTRIAL CONSUMERS TRADERS SAY BUT TWO FACTORS APPEAR TO BE KEEPING INVESTMENT OR SPECULATIVE DEMAND FOR THE METAL SOMEWHAT MUTED FEARS OF CENTRAL BANK SALES OF GOLD SUCH SALES DEPRESSED PRICES LAST YEAR AND THE VIEW THAT THERE IS AN INCREASINGLY REMOTE PROSPECT THAT INFLATION IS ABOUT TO ROAR AHEAD GOLD IS STILL CONSIDERED THE CLASSIC HEDGE AGAINST INFLATION IAN MACDONALD VICE PRESIDENT IN PRECIOUS METALS FOR CREDIT SUISSE IN NEW YORK SAID GOLD SEEMS TO BE CAUGHT BETWEEN 335 AND 340 AN OUNCE WITH DOWNWARD PRESSURE COMING FROM PERSISTENT SALES BY AUSTRALIAN AND SOUTH AFRICAN GOLD MINING COMPANIES GOLD IS STILL STUCK IN A RANGE IT'S BEEN VERY CLOSE TO BREAKING OUT THROUGH THE 340'S BUT STILL NEEDS TO DO SOME WORK MR MACDONALD SAID WE'VE SEEN SOME PRODUCERSELLING FROM OVERSEAS MOSTLY FROM AUSTRALIA AND SOUTH AFRICA WHERE COMPANIES ARE GETTING RECORD PRICES FOR GOLD IN THEIR LOCAL CURRENCIES WHICH HAVE BEEN DEPRECIATING AGAINST THE DOLLAR GOLD IS DENOMINATED IN DOLLARS SOME TRADERS BELIEVE PLATINUM STANDS A BETTER CHANCE THAN GOLD TO MOVE SHARPLY HIGHER AND BREAK THROUGH ITS NEXT RESISTANCE LEVEL BECAUSE CERTIFIED INVENTORIES ARE BECOMING INCREASINGLY THIN PARTLY THE RESULT OF SUPPLY DISRUPTIONS FROM RUSSIA MEANWHILE SILVER FOR MAY DELIVERY SETTLED 67 CENTS LOWER AT 3878 AN OUNCE AND PALLADIUM FOR JUNE DELIVERY SHED 135 TO SETTLE AT 111 AN OUNCE IN OTHER COMMODITY MARKETS GRAINS & SOYBEANS PRICES OF SOYBEAN FUTURES CONTRACTS CONTINUED TO FALL AMID SPECULATION THAT RAINY WEATHER IN THE MIDWEST MIGHT FORCE FARMERS TO PLANT MORE SOYBEANS AND LESS CORN THAN PLANNED CORN IS PLANTED BEFORE SOYBEANS IN THE MIDWEST SO A MUDDELAYED PLANTING SEASON WOULD PROMPT FARMERS TO SHIFT MORE OF THEIR ACREAGE TO SOYBEANS SOME GRAIN ANALYSTS SAID TRADERS ARE OVERREACTING TO THE RAINY WEATHER BECAUSE THE PLANTING SEASON WON'T HIT FULL STRIDE UNTIL MAY EVEN THEN CORN FARMERS CAN SWITCH TO QUICKERGROWING CORN VARIETIES RATHER THAN SHIFT TO SOYBEANS CORN IS THE NATION'S BIGGEST CROP IN PART BECAUSE GOVERNMENT PRICE SUPPORTS HELP TO MAKE IT MORE PROFITABLE FOR MANY FARMERS TO GROW THAN SOYBEANS IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR MAY DELIVERY FELL 475 CENTS A BUSHEL TO SETTLE AT 5905 A BUSHEL ENERGY PETROLEUM PRICES SETTLED LOWER IN LACKLUSTER FUTURES TRADING BOTH MAY AND JUNE CRUDE CONTRACTS WERE DOWN 18 CENTS A BARREL ON THE NEW YORK MERCANTILE EXCHANGE TO 2022 AND 2042 RESPECTIVELY INDUSTRY REPORTS OF A BIGGERTHANEXPECTED INCREASE IN US OIL INVENTORIES LAST WEEK CONTINUED TO ADD A BEARISH TOUCH TO THE CRUDE MARKET THE DEPARTMENT OF ENERGY HAS ESTIMATED THAT CRUDE OIL INVENTORIES WERE UP 116 MILLION BARRELS FROM THE LEVEL OF THE PRECEDING WEEK BUT TRADERS GENERALLY CITED TECHNICAL FACTORS FOR YESTERDAY'S PRICE WEAKNESS THE MAY CRUDE CONTRACT OPENED HIGHER BUT DRIFTED LOWER AFTER FAILING TO BREAK THROUGH THE TECHNICALLY IMPORTANT LEVEL OF 2047 A BARREL OILMARKET PARTICIPANTS SUGGESTED THAT CRUDE PRICES ARE LIKELY TO REMAIN IN A LONGTERM RANGE OF 1950 TO 21 A BARREL ACCORDING TO DOW JONES INTERNATIONAL PETROLEUM REPORT MAY CRUDE TRADED BETWEEN 2020 AND 2047 A BARREL YESTERDAY 9304160022 930416 BUSINESS BRIEF GILLETTE'S QUARTERLY EARNINGS FELL 97 DUE TO BIG CHARGE SOFT EUROPEAN SALES BOSTON GILLETTE CO CITING WEAK EUROPEAN SALES AND A ONETIME CHARGE FOR ACCOUNTING CHANGES SAID FIRSTQUARTER NET INCOME FELL 97 ON FLAT VOLUME IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GILLETTE DECLINED 2 TO 54 A SHARE AS ANALYSTS EXPRESSED CONCERN ABOUT THE POSSIBILITY THAT WEAK EUROPEAN MARKETS WILL HURT SECONDQUARTER RESULTS AS WELL SEPARATELY THE COMPANY RAISED ITS QUARTERLY DIVIDEND TO 21 CENTS A SHARE FROM 18 CENTS PAYABLE JUNE 4 TO STOCK OF RECORD MAY 3 FIRSTQUARTER NET INCOME AT THE MAKER OF PERSONALCARE PRODUCTS AND TOILETRIES WAS 37 MILLION OR ONE CENT A SHARE DOWN FROM 1294 MILLION OR 58 CENTS A SHARE IN THE YEARAGO QUARTER SALES WERE 122 BILLION COMPARED WITH 121 BILLION GILLETTE SAID ITS EARNINGS WERE LOWERED BY A CHARGE OF 1386 MILLION OR 63 CENTS A SHARE PRIMARILY RELATED TO ACCOUNTING FOR POSTRETIREMENT BENEFITS EARNINGS BEFORE THE ACCOUNTING CHANGES ROSE 10 TO 1423 MILLION OR 64 CENTS A SHARE THE COMPANY WHICH GENERATES ABOUT 70 OF ITS SALES AND OPERATING PROFIT FROM MARKETS OUTSIDE THE US SAID TOTAL SALES FOR THE QUARTER ROSE LESS THAN 1 BECAUSE OF WEAK EUROPEAN CURRENCIES AND UNCERTAIN ECONOMIES ALTHOUGH SALES INCREASED IN ITS RAZOR AND BLADE DIVISION WHICH INCLUDES THE GILLETTE SENSOR SHAVING SYSTEM REVENUE IN ITS STATIONERY PRODUCTS TOOTHBRUSH AND HOUSEHOLD APPLIANCE DIVISIONS FELL IF IT WEREN'T FOR EUROPEAN CURRENCIES TOTAL WORLDWIDE SALES WOULD HAVE INCREASED 4 TO 45 SAID ROBERT DICENSO A GILLETTE SPOKESMAN DIANE MUSTAIN AN ANALYST FOR DUFF & PHELPS CORP IN CHICAGO SAID INVESTORS MAY NOW BE CONCERNED THAT SINCE THE EUROPEAN ECONOMY HAS YET TO BOUNCE BACK GILLETTE'S SECOND QUARTER MAY BE WEAKER THAN EXPECTED THE CONSENSUS HAD BEEN 63 CENTS A SHARE IT MAY BE MORE LIKE 61 CENTS A SHARE SHE SAID IN THE 1992 SECOND QUARTER GILLETTE HAD NET OF 1205 MILLION OR 55 CENTS A SHARE ON SALES OF 119 BILLION GILLETTE SAID SALES AT ITS TOILETRIES AND COSMETICS DIVISION ROSE SHARPLY FROM THE YEARAGO PERIOD DUE TO HEAVY PROMOTIONS OF ITS MALE TOILETRIES LINE WHICH WAS INTRODUCED IN JANUARY THE COMPANY SAID SALES OF THE NEW LINE ARE EXCEPTIONAL BUT DECLINED TO ELABORATE GILLETTE SAID IT WILL EXTEND THE PRODUCT LINE BY DECEMBER WITH A NEW AFTERSHAVE SPLASH 9304160020 930416 BUSINESS BRIEF LIFETIME SEEKS BUYER INVITES SECOND OFFER BY ABBEY HEALTHCARE BOSTON LIFETIME CORP SAID ITS DIRECTORS HAVE DECIDED ACTIVELY TO PURSUE THE SALE OF THE COMPANY OR ITS INDIVIDUAL DIVISIONS AS THE BEST WAY TO PROVIDE SHAREHOLDERS WITH MAXIMUM VALUE LIFETIME A HOMEHEALTHCARE CONCERN EARLIER HAD SAID IT WOULD EXPLORE WAYS TO ENHANCE VALUE WHEN IT SPURNED A HOSTILE TAKEOVER PROPOSAL BY ABBEY HEALTHCARE GROUP INC A MUCH SMALLER HOMEHEALTHCARE COMPANY BASED IN COSTA MESA CALIF IN MARCH ABBEY OFFERED 2350 A SHARE LATER RAISED ITS BID TO 2750 A SHARE OR 2613 MILLION IN CASH AND STOCK AND THEN WITHDREW ITS OFFER AFTER LIFETIME'S REJECTION YESTERDAY LIFETIME SAID IT IS INVITING ABBEY TO MAKE ANOTHER OFFER IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY LIFETIME STOCK ROSE 2125 TO CLOSE AT 27 SINCE ABBEY MADE ITS FIRST OFFER LIFETIME SAID ITS INVESTMENT BANKER GLEACHER & CO HAS BEEN EXPLORING POSSIBILITIES FOR MAXIMIZING SHAREHOLDER VALUE LIFETIME SAID IT HAS RECEIVED INDICATIONS OF INTEREST FROM A NUMBER OF PROSPECTIVE BUYERS ABBEY INDICATED IT HASN'T GIVEN UP THE CHASE BY SAYING LAST WEEKEND THAT IT WILL WAGE A PROXY FIGHT TO ELECT LEONARD GREEN PRESIDENT OF GREEN MANAGEMENT AND INVESTMENT CO TO THE SEAT ON THE BOARD HELD BY ANTHONY REEVES CHAIRMAN AND CHIEF EXECUTIVE ABBEY HAS BEEN SHARPLY CRITICAL OF MR REEVES'S COMPENSATION AND STOCK OPTIONS YESTERDAY LIFETIME SAID IT WILL POSTPONE ITS ANNUAL MEETING AT WHICH THE ELECTION WILL BE HELD WHILE IT PURSUES PROSPECTIVE BUYERS IN COSTA MESA AN ABBEY SPOKESWOMAN SAID THE TWO COMPANIES' FINANCIAL ADVISERS HAVE BEEN IN CONTACT WITH ONE ANOTHER BUT SHE ADDED THAT THE EARLIER SWEETENED BID OF 2750 A SHARE HAS NOT BEEN REVIVED ABBEY INTENDS TO PURSUE THE PROXY FIGHT SHE ADDED MR REEVES SAID IN AN INTERVIEW THAT HE IS TRYING TO DEPERSONALIZE THE DEALING WITH ABBEY AS A HOLDER OF NEARLY ONE MILLION SHARES OR 99 OF LIFETIME'S SHARES OUTSTANDING HE SAID HE HAS THE SAME OBJECTIVES AS OTHER HOLDERS HE ADDED THAT A DEAL WOULDN'T BE CONDITIONED ON HIS KEEPING A JOB MR REEVES ADDED THAT BECAUSE THE BOARD SAID JUST A FEW DAYS AGO THAT THE 2750 OFFER WAS INADEQUATE THE BOARD IS OBVIOUSLY FIRM ON THAT POINT HE ADDED THAT THE BOARD ALSO HAD CRITICIZED ABBEY FOR MAKING AN OFFER WITHOUT FIRM FINANCING 9304160019 930416 MOVIES FILM ADS BLAST AWAY WITH BOTH BARRELS BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD WALKING DOWN A STREET HERE MARIA MCKEE STOPS AND WINCES AT A BUSSHELTER AD FOR THE NEW WESLEY SNIPES ACTION MOVIE BOILING POINT WHICH OPENS TODAY THE AD FEATURES A CLOSEUP SHOT OF MR SNIPES POINTING A GIANT PISTOL STRAIGHT AHEAD THE POSTER FOR THE WARNER BROS FILM DECLARES HE'S A COP WHO'S REACHED THE BOILING POINT THIS IS INSULTING DON'T THEY HAVE ANY SHAME ASKS MS MCKEE 31 YEARS OLD WHO WORKS AT AN OFFICESUPPLY STORE THIS LOOKS LIKE A COMMERCIAL FOR THE EVENING NEWS INCREASING URBAN TENSION PROMPTED IN THIS CITY OF COURSE BY THE FEDERAL RODNEY KING BEATING TRIAL HASN'T STOPPED HOLLYWOOD FROM FEATURING GUNS PROMINENTLY IN AT LEAST 10 CURRENT MOVIEMARKETING CAMPAIGNS CRITICS CHARGE THAT HOLLYWOOD'S ALREADY RAVENOUS FASCINATION WITH GUNS HAS SPIRALED DANGEROUSLY OUT OF CONTROL ALMOST INVITING URBAN VIOLENCE AND GLAMORIZING GUN USE MORE THAN EVER BEFORE FEELING AT LEAST SOME HEAT WARNER YESTERDAY CRIED UNCLE AND BACKPEDALED FROM THE DRAMATIC CAMPAIGN FOR BOILING POINT PREPARING NEW ADS BUT FOR LOS ANGELES NEWSPAPERS ONLY INSTEAD OF THE OVERSIZED GUN THE NEW ADS WILL FOCUS ON A POLICE BADGE BUT THE STUDIO A UNIT OF TIME WARNER INC NONETHELESS REMAINS AMONG HOLLYWOOD'S BIGGEST FIREARM PROMOTERS GUNS ARE FEATURED IN THE POSTERS FOR THREE OF ITS OTHER MOVIES FALLING DOWN POINT OF NO RETURN AND UNFORGIVEN WARNER ISN'T ALONE NEARLY EVERY STUDIO RECENTLY HAS RUN CAMPAIGNS THAT JOSH SUGARMANN EXECUTIVE DIRECTOR OF THE VIOLENCE POLICY CENTER A WASHINGTON ADVOCACY GROUP DESCRIBES SIMPLY AS GUN ADVERTISING OTHER STUDIOS' MOVIES CURRENTLY BEING PITCHED WITH WEAPONSLOADED POSTERS INCLUDE HOT SHOTS PART DEUX FROM NEWS CORP'S TWENTIETH CENTURY FOX GRAMERCY PICTURES' POSSE WHO'S THE MAN AND NATIONAL LAMPOON'S LOADED WEAPON I FROM NEW LINE CINEMA CORP CANNON PICTURES' STREET KNIGHT AND COLUMBIA PICTURES' EL MARIACHI EVEN THE CRYING GAME FROM MIRAMAX FILMS CORP HAS A GUN IN THE MIDDLE OF ITS CURRENT AD DO STUDIOS HAVE A SOCIAL RESPONSIBILITY HERE WE ARE SOCIALLY RESPONSIBLE ON AN ONGOING BASIS IN EVERYTHING WE DO RESPONDS ROBERT G FRIEDMAN WARNER'S PRESIDENT OF WORLDWIDE ADVERTISING AND PUBLICITY HE SAYS THE COMPANY MAKES IT CLEAR IN BOTH SETS OF BOILING POINT ADS THAT THE MAIN CHARACTER IS A POLICE OFFICER AND HE ADDS THAT POLICE OFFICERS IN AMERICA CARRY GUNS HE SAYS MOVIEGOERS KNOW THAT MOVIES ARE FANTASY AND THAT THEY HAVE THE ABILITY TO DECIDE WHICH ONES THEY WANT TO SEE WHAT'S MORE HE SAYS POINT OF NO RETURN AND FALLING DOWN SELL TICKETS SO OBVIOUSLY THE PUBLIC HAS AN INTEREST IN SEEING THESE MOVIES BUT OTHERS IN THE INDUSTRY INCLUDING SID GANIS PRESIDENT OF MARKETING AND DISTRIBUTION AT COLUMBIA A UNIT OF SONY CORP THINK MOVIEGOERS MAY HAVE REACHED THE SATURATION POINT IN TERMS OF GUNS IN MOVIE ADS HE SAYS THAT HE AND OTHERS ARE GRAPPLING WITH ALTERNATE WAYS OF MARKETING ACTION FILMS IT DOESN'T FEEL CORRECT TODAY IT'S NOT OF THE TIMES TO HAVE OUR HEROES ALWAYS EITHER ARMED OR IN THE MIDDLE OF GUN BATTLES HE SAYS MR GANIS SAYS PROUDLY THAT THE POSTERS FOR COLUMBIA'S TWO BIG SUMMER ACTION MOVIES LAST ACTION HERO WITH ARNOLD SCHWARZENEGGER AND IN THE LINE OF FIRE WITH CLINT EASTWOOD WON'T FEATURE WEAPONS THERE'S PLENTY OF ACTION AND TRADITIONAL GUN PLAY IN THE MOVIES BUT NOT IN THE ONESHEET MOVIE POSTER HE SAYS COLUMBIA'S RECORD IS FAR FROM PERFECT THE STUDIO PROMOTED THE LOWBUDGET ACTION FILM EL MARIACHI WITH A POSTER FEATURING A MAN WALKING DOWN THE MIDDLE OF A HIGHWAY TOTING A MACHINE GUN MR GANIS SAYS THAT SITUATION IS ENTIRELY DIFFERENT THE MAN IS NOT A MOVIE STAR HE'S NOT A ROLE MODEL AND IT'S A FOREIGN FILM HE EXPLAINS THERE WERE COMPLETELY DIFFERENT CIRCUMSTANCES THAN LAST ACTION HERO' WHICH IS A VERY MAJOR PG13 RATED MOVIE IT'S NOT A CONTRADICTION THE STUDIO NONETHELESS AGGRESSIVELY MARKETED THE RRATED EL MARIACHI AND PLENTY OF MOVIEGOERS SAW THE POSTER CRITICS SAY MR SCHWARZENEGGER HIMSELF WHO HAS MADE A FORTUNE FROM SUCH VIOLENT FILMS AS TERMINATOR 2 AND TOTAL RECALL IS TURNING INTO A PEACE BROKER OF SORTS THESE DAYS HE WAS INSTRUMENTAL IN DECIDING WITH COLUMBIA EXECUTIVES TO AVOID WEAPONRY IN THE LAST ACTION HERO POSTER AND HE PRESSED EXECUTIVES AT MATTEL INC THE FILM'S TOY LICENSEE TO COME UP WITH ACTION FIGURE ACCESSORIES OTHER THAN GUNS THE STAR ALSO JUST MADE A MUSIC VIDEO IN WHICH HE CRITICIZES GUN USE I DO MOVIES THAT ARE VERY VIOLENT BUT THIS IS JUST THE MOVIES HE SAYS IN THE VIDEO IN REALITY I DON'T BELIEVE IN VIOLENCE AT ALL I BELIEVE IN PEACE BUT SOME SAY MR SCHWARZENEGGER'S ACTIONS SPEAK LOUDER THAN HIS WORDS THESE KIDS THEY GO OUT AND MIMIC WHAT THEY SEE IN A VERY REAL WAY SAYS ED TURLEY DIRECTOR OF FIELD OPERATIONS AT COMMUNITY YOUTH GANG SERVICES IN LOS ANGELES THE STUDIOS DON'T CARE BECAUSE OF THE DOLLARS INVOLVED CRITICS KNOW HOLLYWOOD ISN'T GOING TO STOP MAKING VIOLENT ACTION MOVIES BUT MANY THINK IT WOULD BE A STEP IN THE RIGHT DIRECTION IF WEAPONS WERE REMOVED FROM OUTDOOR BILLBOARDS AND THEATERLOBBY POSTERS THE KID WALKING DOWN THE LOBBY HEADING FOR THE THEATER SHOWING HUCK FINN' SEES A LITANY OF ADVERTISING WHERE GUNS ARE PLASTERED ON THE POSTERS BRINGING IT TO HIS ATTENTION SAYS MR SUGARMANN OF THE VIOLENCE POLICY CENTER IT HAS A REAL EFFECT MR SUGARMANN SAYS THERE IS A CORRELATION BETWEEN THE TYPES OF GUNS FEATURED IN MOVIES AND MOVIE ADS AND THE ONES THAT SHOW UP LATER ON THE STREETS THEY'RE ALWAYS ABOUT EIGHT TO NINE MONTHS AHEAD OF WHAT'S ON THE MARKET HE ADDS WARNER'S BOILING POINT REVAMP ISN'T THE FIRST TIME A GUN HAS BEEN AIRBRUSHED FROM A MOVIE POSTER LAST YEAR AFTER CRITICISM FROM SOCIAL CRITICS AND SOME POLICEMEN IN LOS ANGELES PARAMOUNT PICTURES REMOVED A REVOLVER FROM THE POSTER FOR JUICE A DRAMA IT RELEASED ABOUT LIFE IN THE INNER CITY THE STUDIO A UNIT OF PARAMOUNT COMMUNICATIONS INC INSISTED AT THE TIME THAT IT REMOVED THE REVOLVER OUT OF CREATIVE CONSIDERATIONS BUT MOVIE EXECUTIVES SAY THAT SELLING ACTION MOVIES WITHOUT GUNS IS DIFFICULT THERE ARE SIGNALS THAT SAY THIS IS AN ACTION FILM' A GUN BEING ONE OF THEM SAYS PETER BEMIS PRESIDENT OF FRANKFURT GIPS BALKIND AN AD AGENCY THAT MAKES MOVIE TRAILERS AND POSTERS YOU'D BE REMISS TO NOT HAVE ONE OF THOSE SIGNALS AND HE ADDS IF YOU BUILD A TANK YOU CAN'T SELL IT AS A SMOOTHRIDING LIMOUSINE 9304160018 930416 THIS MATING RITUAL DEMANDS A JOURNEY INTO TUNNEL OF LOVE FOR SEX THE SINGLE SALAMANDER MUST SKIRT OWLS RACCOONS AND TEENS OUT FOR KICKS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL AMHERST MASS SQUATTING AT THE END OF A SMALL LIGHTED TUNNEL A YOUNGSTER SPOTS A SLIMY MIGRANT EMERGING AND EXCITEDLY YELLS TO AN ADULT SCRIBBLING NUMBERS ON A CLIPBOARD NO 10 IS COMING OUT NO 10 IS QUICKLY FOLLOWED BY NO 2 WHICH LIKE THE MANY TUNNELERS THAT FOLLOW HURRIES BY INTO THE DARKNESS NEXT TO A ROAD ON THE OUTSKIRTS OF THIS COLLEGE TOWN THESE PEOPLE ARE SPENDING SATURDAY NIGHT IN THE DRIVING RAIN TO ASSIST IN AN ANCIENT RITUAL THE ANNUAL ORGY OF THE HENRY STREET SALAMANDERS SALAMANDERING OR WATCHING THE LIZARDLIKE CREATURES IS AMHERST'S RITE OF SPRING EXCITEMENT IS RUNNING ESPECIALLY HIGH THIS YEAR BECAUSE A PRESSING QUESTION IS BEING STUDIED ARE SALAMANDERS ATTRACTED TO THE LIGHT AT THE END OF THE TUNNEL THIS IS THE SITE OF THE NATION'S FIRST SALAMANDER TUNNELS BUILT UNDER HENRY STREET AS SAFE PASSAGES FOR THE AMPHIBIANS AS THEY MAKE THEIR WAY FROM A HILLSIDE HABITAT TO A NEARBY BOG FOR MATING BUT THE TUNNELS ARE ICING ON THE CAKE FOR THESE NATURELOVING VOLUNTEERS THE MAIN ATTRACTIONS ARE THE CRITTERS WRIGGLING INTO THEM ON THIS NIGHT SCORES OF SALAMANDERS QUICKEN IN THE SOGGY LEAVES NEAR THE ROAD IT IS AS IF TINY DINOSAURS WERE COMING TO LIFE AFTER BEING LOCKED IN A FROZEN SWAMP FOR A GODZILLION YEARS IT'S FASCINATING ATTESTS LESLIE GIFFEN WHO FORGOT HER RAINCOAT BUT STAYS THREE HOURS AND GETS SOAKED A REAL PRIMEVAL SIGHT MARVELS ANDREW KINSEY LEAD SINGER OF SALAMANDER CROSSING A LOCAL BLUEGRASS BAND WHICH ALSO MIGHT BE SAID OF THE MODERNDAY DRUIDS IN SLICKERS THEY ANNUALLY EMERGE IN DROVES FROM CARS HERE BECAUSE THE SALAMANDER ERUPTION IS THE FIRST REAL SIGN OF SPRING SAYS TED WATT MANAGER OF HITCHCOCK CENTER FOR THE ENVIRONMENT A LOCAL NATURE CENTER IT'S ALMOST A MYSTICAL EXPERIENCE AN ECOLOGICAL PAUL REVERE HE CALLS DOZENS OF LOCAL PEOPLE TO TELL THEM THE SALAMANDERS ARE COMING MORE THAN 100 SHOW UP OF BOTH HUMANS AND SALAMANDERS MR WATT WAS TIPPED OFF BY THE WEATHERMAN FOR THE CREATURES EMERGE WITH THE SEASON'S FIRST WARM RAIN THESE ARE TO BE EXACT SPOTTED SALAMANDERS BLACK SIX INCHES LONG AND SPOTTED WITH BRIGHT YELLOW POLKA DOTS THEY RESEMBLE BABY ALLIGATORS IN OVERTIGHT CLOWN SUITS BUT THEY ARE GRIM LITTLE BEASTS FULL OF EARNEST PURPOSE AND GOING PLACES THIS IS THE NIGHT FOR MATING AND THEY ARE DETERMINEDLY SLOGGING TO THE BOG WHERE IT HAPPENS EVERY YEAR TROUBLE IS HENRY STREET SEPARATES THEIR HILL FROM THE BOG COUNTLESS SALAMANDERS WERE FLATTENED ON THE ROAD DURING THE ANNUAL STAMPEDE TO THE MARSH WHICH TYPICALLY LASTS A FEW DAYS UNTIL CONCERNED CITIZENS BEGAN GATHERING HERE EACH YEAR TO CARRY THE AMPHIBIANS ACROSS BY HAND OR IN BUCKETS BUT NOW THAT THE TUNNELS HAVE BEEN INSTALLED THE ANIMALS ARE NEGOTIATING THE DANGEROUS PASSAGE ON THEIR OWN IN MORE DIGNIFIED STYLE OR AT LEAST THAT WAS THE IDEA WHEN LOCAL CONSERVATIONISTS AND TOWN OFFICIALS INSTALLED TWO HALFFOOTWIDE CONCRETE TUNNELS IN 1987 ALONG WITH LOW FENCES TO FUNNEL THE ANIMALS INTO THE PASSAGES THEY ARE WORKING BUT NOT ALWAYS AS WELL AS HOPED IT SEEMS THAT EVEN THESE MOST SALACIOUS OF CREATURES HAVE RESERVATIONS ABOUT ENTERING THE TUNNEL OF LOVE INDEED THE FIRST SALAMANDER TO EMERGE AFTER THE TUNNELS WERE BUILT CRAWLED UP TO ONE BRIEFLY PONDERED THE CAMERA LENSES AND FLASHLIGHTS OVER THE ENTRANCE TURNED AROUND AND SLOWLY FLAILED BACK UP THE HILL ACCORDING TO TOM TYNING A NATURALIST WITH MASSACHUSETTS AUDUBON SOCIETY THEN SOMEONE NOTICED THAT A FLASHLIGHT POINTED INTO THE BOGSIDE TUNNEL EXIT SEEMED TO DRAW THE RELUCTANT ROMANTICS INTO THE OTHER END THAT DEFIES CONVENTIONAL WISDOM SAYS MR WATT SALAMANDERS ARE AS RECLUSIVE AS EMILY DICKINSON SPENDING MOST OF THE YEAR UNDERGROUND AND SUPPOSEDLY SHUNNING LIGHT IF CONFIRMED THE DISCOVERY COULD LEAD TO A MAJOR ADVANCE THE SALAMANDERFRIENDLY LIGHTED TUNNEL TO STUDY THE QUESTION MR WATT HAS ORGANIZED VOLUNTEERS TO MONITOR THE AMPHIBIANS ONE TUNNEL IS DARK THE OTHER ILLUMINATED BY A FLASHLIGHT FACING INTO THE EXIT THE AMATEUR SCIENTISTS HOPE TO FIND OUT WHICH ONE GETS THE MOST TRAFFIC IT IS A SLIPPERY STUDY TO IDENTIFY THEM WHEN STUDYING THEIR MOVEMENTS BIOLOGISTS TRADITIONALLY CLIP OFF SOME OF THE CREATURES' TOES WHICH GROW BACK BUT WE JUST COULDN'T SEE DOING THAT SAYS MR WATT SO A FEW YEARS AGO AMHERST'S SALAMANDER TRACKERS TRIED SKETCHING THE SALAMANDERS' INDIVIDUAL PATTERNS OF DOTS TO IDENTIFY AND TRACK THEM AS THEY PASSED THROUGH THE TUNNELS BUT IT GOT CRAZY WHEN THREE OR FOUR BEGAN ENTERING AT THE SAME TIME SAYS MARK COUGHLIN A VOLUNTEER ATTENDING HIS FOURTH EMERGENCE HERE NEXT THEY GLUED SMALL PIECES OF COLOR AND SHAPECODED REFLECTIVE TAPE ONTO THE ANIMALS BUT THAT SYSTEM ALSO BROKE DOWN IN CONFUSION DURING THE RANDY RUSH NOW THEY GLUE SMALL PLASTIC NUMBERS ONTO THE SALAMANDERS' HEADS IT DOESN'T SEEM TO FAZE THE ANIMALS A BIT THEY'RE REAL ANXIOUS TO GET DOWN THERE AND BEGIN THE BREEDING CYCLE SAYS MR COUGHLIN THE MALES GO FIRST AFTER REACHING THE WATER THEY GATHER IN WRITHING MASSES THAT BIOLOGISTS CALL CONGRESSES WHEN A FEMALE LATER APPROACHES THIS SEETHING LEGISLATURE A LONE MALE TYPICALLY BREAKS OUT AND BEGINS A COMPLICATED COURTSHIP DANCE WITH HER A SINUOUS TANGO OF RUBBING AND INTERTWINING NO WONDER SALAMANDERS ARE SOMETIMES CALLED SIRENS WHEN A FEMALE IS SUFFICIENTLY SWEPT OFF HER FEET HER SUITOR DEPOSITS A PACKET OF SPERM ON AN UNDERWATER LEAF OR STICK SHE PICKS UP THE PACKET AND STORES IT IN AN INTERNAL CHAMBER FOR FERTILIZING EGGS WHICH ARE LAID IN THE POND INSPIRED BY ALL THIS MR KINSEY'S BAND COMPOSED A LOCALLY POPULAR SONG THE FIRST VERSE DO IT IN THE SLIME IT SURE FEELS GREAT BUT LOOK BOTH WAYS BEFORE YOU MATE IF YOU MAKE YOUR MOVE TOO LATE YOU'LL BE CAUGHT WITHOUT A DATE THE LAST LINE IS PARTICULARLY APT FOR THE CONGRESSES USUALLY ARE ADJOURNED BEFORE MOST OF THEIR MEMBERS GET A CHANCE TO ENGAGE IN SEXUAL POLITICS THE FEMALES BREED ONLY ONCE EVERY TWO OR THREE YEARS AND ARE GREATLY OUTNUMBERED BY MALES AND MANY THINGS CAN WAYLAY AN AMOROUS SALAMANDER RACCOONS OWLS AND SOMETIMES HUMANS WHO CELEBRATE SALAMANDER NIGHT BY DRIVING ALONG HENRY STREET AND MANIACALLY SCREAMING SQUISH SQUISH WHILE ROLLING OVER THE AMPHIBIANS BUT TONIGHT MOST OF THE CREATURES CROSS SAFELY MAINLY THROUGH THE LIGHTED TUNNEL IT SEEMS MAKING A LOT OF PEOPLE HAPPY AMHERST IS KIND OF PROUD IT HAS GONE TO THE EFFORT TO PROTECT THE SALAMANDERS SAYS MR KINSEY IT SHOWS THAT NO MATTER HOW SMALL OR SLIMY YOU ARE YOU CAN BE IMPORTANT 9304160017 930416 BUSINESS BRIEF TOTAL SA FRENCH FIRM TO SELL ITS STAKE IN RANCHMEN'S RESOURCES RANCHMEN'S RESOURCES LTD SAID FRENCH OIL CONCERN TOTAL SA AGREED TO SELL ITS 52 STAKE IN RANCHMEN'S FOR ABOUT 502 MILLION CANADIAN DOLLARS 397 MILLION RANCHMEN'S SAID THE SALE WILL BE MADE THROUGH PRIVATE PLACEMENT OF 106 MILLION SPECIAL WARRANTS AT C475 A WARRANT EACH WARRANT WILL BE EXCHANGEABLE FOR ONE COMMON SHARE AFTER THE TRANSACTION HAS BEEN CLEARED BY REGULATORS RANCHMEN'S SHARES WERE UNCHANGED AT C525 IN TRADING YESTERDAY ON THE TORONTO STOCK EXCHANGE KERRY SULLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID A LARGE NUMBER OF INVESTORS WILL TAKE PART IN THE PRIVATE PLACEMENT SO RANCHMEN'S SHARES WILL BE WIDELY HELD AFTER THE TRANSACTIONS 9304160016 930416 PUTNAM EXECUTIVE SEES CROWDED ARENA FOR MUTUAL FUNDS LONGTERM FORECAST APPEARS BRIGHT BUT DIPS MAY SEND THE UNINFORMED FLEEING BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BANKS INDUSTRIAL COMPANIES AND EVEN AIRLINES ARE GETTING INTO THE BOOMING MUTUAL FUND BUSINESS AND ONE ESTABLISHED FUND EXECUTIVE FINDS THAT TREND DISQUIETING THE FLOOD OF MONEY INTO MUTUAL FUNDS HAS BROUGHT MARGINAL PLAYERS INTO THE FUND BUSINESS SAID LAWRENCE J LASSER PRESIDENT AND CHIEF EXECUTIVE OF PUTNAM INVESTMENTS A SUBSIDIARY OF MARSH & MCLENNAN COS AN INSURANCE AND INVESTMENT MANAGEMENT CONCERN IN COMMENTS TO REPORTERS IN NEW YORK YESTERDAY MR LASSER SAID THAT WHILE HE WASN'T PREDICTING AN IMMINENT SHAKEOUT IN THE FUND BUSINESS WE THINK IT'S OVERCROWDED MR LASSER SAID THAT OVER THE LONG TERM HE EXPECTS DEMAND FOR MUTUAL FUNDS TO REMAIN STRONG GIVEN THE DRAMATIC DECLINE IN INTEREST RATES AND THE SHIFT AMONG AGING BABY BOOMERS TO SAVING FROM SPENDING BUT HE ADDED THAT THE FUND INDUSTRY REMAINS SUBJECT TO CYCLICAL DIPS DESPITE THE PROSPECT OF LONGTERM GROWTH WE'RE NOT READY TO PREDICT THAT THIS IS A MARKET PEAK BUT THIS IS A VERY FINE TIME FOR THE MUTUAL FUND INDUSTRY HE SAID IT IS NOT THE TIME THAT PRUDENT PEOPLE UNDERTAKE BIG EXPENSIVE BUILDUPS PUTNAM BASED IN BOSTON MANAGES 71 BILLION IN ASSETS INCLUDING ABOUT 50 BILLION IN MUTUAL FUNDS SOLD THROUGH BROKERS BANKS AND FINANCIAL PLANNERS MR LASSER SAID THAT MANY OF THE INVESTORS POURING MONEY INTO MUTUAL FUNDS HAVE RECEIVED SUFFICIENT WARNING THAT FUNDS UNLIKE CDS CAN LOSE MONEY IN A MARKET DOWNTURN BUT HE ACKNOWLEDGED THAT MANY PEOPLE MAY NOT UNDERSTAND THE RISKS IN STOCK AND BOND INVESTMENTS CLEARLY I THINK THE SYSTEM IS SET UP TO DISAPPOINT A LOT OF PEOPLE IN A BEAR MARKET HE SAID MR LASSER SAID THAT PUTNAM HAS DOUBLED ITS PENSION BUSINESS IN RECENT YEARS DESPITE FLAT TO DOWN CONDITIONS IN PENSION MANAGEMENT GENERALLY BUT PUTNAM'S JAPANESE INVESTORS WERE PULLING MONEY OUT OF THEIR US INVESTMENTS ANOTHER PUTNAM EXECUTIVE SAID IN ORDER TO AVOID TAKING LOSSES ON THEIR JAPANESE SECURITIES WHICH HAVE DECLINED SHARPLY IN PRICE IN RECENT YEARS PUTNAM MANAGES 4 BILLION IN JAPANESE ASSETS INVESTED IN US SECURITIES 9304160015 930416 SUZUKI CHINA PLAN TWO VENTURES TO MAKE CARS AND MOTORCYCLES SPECIAL TO THE WALL STREET JOURNAL TOKYO SUZUKI MOTOR CORP A JAPANESE MAKER OF CARS AND MOTORCYCLES SAID IT HAS SIGNED CONTRACTS TO SET UP TWO JOINT VENTURES WITH CHINA TO MANUFACTURE PASSENGER CARS AND MOTORCYCLES IN THE CENTRAL CHINESE PROVINCE OF SICHUAN SUZUKI IS MANUFACTURING ITS PASSENGER CARS AND MOTORCYCLES IN CHINA BY SUPPLYING TECHNOLOGY TO CHINESE COMPANIES THE MOVE MARKS SUZUKI'S FIRST JOINT VENTURE IN CHINA FOR MOTORCYCLE PRODUCTION AND THE FIRST CHINA JOINT VENTURE FOR ANY JAPANESE PASSENGER CAR MAKER SUZUKI SAID IN BOTH JOINT VENTURES CHINA NORTH INDUSTRIES GROUP WILL OWN 50 WHILE SUZUKI WILL HOLD 35 AND A JAPANESE TRADING FIRM NISSHO IWAI CORP WILL HOLD 15 PRODUCTION OF SUZUKI'S ALTO PASSENGER CAR MODEL WILL START IN SPRING 1995 AT CHANGAN SUZUKI AUTOMOBILE CO WHICH WILL BE CAPITALIZED THIS JUNE AT 60 MILLION THE FIRSTYEAR OUTPUT IS EXPECTED TO BE 20000 UNITS WHICH WILL BE LIFTED TO 50000 UNITS FROM THE SECOND YEAR ANOTHER JOINT VENTURE WANGJIANG SUZUKI MOTORCYCLE CO WILL BE FORMED IN JUNE AND CAPITALIZED AT 17 MILLION THE NEW COMPANY WILL TAKE OVER CHINA NORTH INDUSTRIES GROUP'S WANGJIANG MACHINERY PLANT WHICH HAS BEEN PRODUCING SUZUKI'S MOTORCYCLES SINCE OCTOBER FIRSTYEAR SALES ARE EXPECTED TO BE 75000 UNITS WHICH WILL BE INCREASED TO 50000 UNITS BY THE THIRD YEAR AND LATER TO 100000 UNITS 9304160014 930416 BUSINESS BRIEF CAITHNESSKING INC AFFILIATE SEEKS 100 MILLION FROM CENTRAL MAINE POWER CAITHNESSKING INC DARIEN CONN SAID AN AFFILIATE IS SEEKING 100 MILLION IN DAMAGES FROM CENTRAL MAINE POWER CO FOR AN ALLEGEDLY WRONGFUL CANCELLATION BY THE UTILITY OF A POWERPURCHASE AGREEMENT CAITHNESS IS A CLOSELY HELD PARTNERSHIP THAT DEVELOPS PULP AND POWER PROJECTS CENTRAL MAINE SAID LAST MONTH THAT IT TERMINATED THE AGREEMENT WHEN CAITHNESS FAILED TO COME UP WITH PROPER CREDIT BACKING FOR A POWER PROJECT CAITHNESS SAID IT MADE THE CLAIM FOR DAMAGES AS PART OF A COUNTERSUIT IN RESPONSE TO A COMPLAINT FOR DECLARATORY RELIEF THAT CENTRAL MAINE POWER FILED IN A FEDERAL COURT MARCH 17 CENTRAL MAINE POWER OFFICIALS DECLINED TO COMMENT AT THE TIME IT ANNOUNCED THE CANCELLATION CENTRAL MAINE SAID THE TERMINATION WOULD SAVE ELECTRIC CUSTOMERS MILLIONS OF DOLLARS IN FUTURE FUEL COSTS UNDER A 30YEAR CONTRACT CENTRAL MAINE WOULD HAVE BEEN REQUIRED TO BUY POWER FROM A GENERATOR CAITHNESS PLANS TO INSTALL AS PART OF A PROPOSED RECYCLED WASTEPAPER MILL IN TOPSHAN MAINE 9304160013 930416 BUSINESS BRIEF FERRO CORP FIRM BUYS COATINGS BUSINESS FROM ICI FOR 51 MILLION FERRO CORP SAID IT ACQUIRED THE NORTH AMERICAN AND EUROPEAN POWDER COATINGS BUSINESS OF IMPERIAL CHEMICAL INDUSTRIES PLC FOR 51 MILLION THE CLEVELAND OHIO COATINGS AND CHEMICALS COMPANY SAID IT WILL ALSO TAKE A CHARGE OF ABOUT 19 MILLION OR SIX CENTS A SHARE FOR THE SECOND QUARTER TO CLOSE SOME EXISTING POWDER COATINGS FACILITIES OUTSIDE THE US FERRO SAID THE ACQUIRED BUSINESSES HAVE ABOUT 75 MILLION IN ANNUAL SALES AND SAID IT EXPECTS THE COMPANY'S WORLDWIDE POWDER COATINGS SALES TO EXCEED 250 MILLION IN THE NEXT SEVERAL YEARS A SPOKESMAN SAID FERRO HAD 1992 SALES OF ROUGHLY 100 MILLION IN POWDER COATINGS IN AUGUST 1991 FERRO AND ICI AGREED TO FORM A POWDER COATINGS JOINT VENTURE BUT NEGOTIATIONS BROKE DOWN BECAUSE OF FERRO'S CONCERNS THAT ITS 49 INTEREST WOULDN'T BE SUFFICIENTLY PROTECTED 9304160012 930416 FORD'S CAR SALES ROSE 19 DURING EARLY APRIL DETROIT THE SELLING RATE FOR USBUILT CARS IMPROVED SLIGHTLY IN EARLY APRIL FROM THE PREVIOUS 30DAY PERIOD AS FORD MOTOR CO REPORTED A 19 JUMP IN ITS DOMESTIC CAR SALES ALL OF THE OTHER AUTO MAKERS WITH THE EXCEPTION OF FORD AND CHRYSLER CORP REPORTED SALES FOR THE APRIL 110 PERIOD EARLIER THIS WEEK FORD SAID IT DIDN'T RELEASE ITS SALES FOR THE PERIOD UNTIL NOW BECAUSE OF THE EASTER HOLIDAY CHRYSLER DOESN'T REPORT 10DAY VEHICLE SALES THE SEASONALLY ADJUSTED ANNUAL SALES RATE WAS 65 MILLION UP FROM A SELLING PACE OF 635 MILLION IN THE PREVIOUS PERIOD IN THE APRIL 110 PERIOD FORD POSTED A 222 JUMP IN TOTAL VEHICLE SALES ITS DOMESTIC TRUCK SALES SURGED 268 IN EARLY APRIL FROM THE YEAREARLIER PERIOD USBUILT LIGHT TRUCKS SOLD AT A SEASONALLY ADJUSTED ANNUAL SALES RATE OF FIVE MILLION UP FROM THE 46 MILLION PACE IN THE PREVIOUS 30DAY PERIOD THE COMBINED DOMESTIC CAR AND LIGHT TRUCK SELLING RATE INDICATES AN 115 MILLION ANNUAL PACE WELL AHEAD OF THE 109 MILLION RATE FOR THE PREVIOUS 30 DAYS 9304160011 930416 MARTIN MARIETTA AND DOE NAMED IN ARKANSAS SUIT BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN MARIETTA CORP SAID THE ARKANSAS STATE ATTORNEY GENERAL HAD SUED THE COMPANY AND THE US ENERGY DEPARTMENT OVER HAZARDOUSWASTE SHIPMENTS TO UNLICENSED FACILITIES AND THAT THE CASE HAS BEEN ASSIGNED TO AN ARKANSAS FEDERAL COURT THE BETHESDA MD DEFENSE CONTRACTOR SAID IN AN ANNUAL FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT THE SUIT NAMED MARTIN MARIETTA'S OAK RIDGE TENN UNIT THE SUIT WAS FILED IN ARKANSAS' PULASKI COUNTY CHANCERY COURT THE COMPANY ALSO SAID IN THE SEC FILING THAT IT HAD BEEN SUBPOENAED BY A GRAND JURY IN ALABAMA OVER SIMILAR HAZARDOUSWASTE SHIPMENTS AND THAT EMPLOYEES FROM ITS OAK RIDGE UNIT HAD TESTIFIED TO THE GRAND JURY AMONG THE SITES MANAGED BY THE MARTIN MARIETTA UNIT IS THE Y12 WEAPONS PLANT NEAR KNOXVILLE TENN WHICH WAS USED FOR THE MANHATTAN PROJECT DURING THE 1940S ACCORDING TO AN ENERGY DEPARTMENT SPOKESWOMAN AT ISSUE IS THE SHIPMENT OF 13 MILLION POUNDS OF WASTES TO DISPOSAL FACILITIES THAT THE NUCLEAR REGULATORY COMMISSION HASN'T LICENSED TO HANDLE RADIOACTIVE MATERIALS CLYDE HOPKINS PRESIDENT OF THE MARTIN MARIETTA UNIT TOLD A US HOUSE OF REPRESENTATIVES COMMITTEE IN FEBRUARY THAT THE SHIPPED WASTES CONTAINED URANIUMCONTAMINATED MATTER WELL BELOW THE LEVEL CONSIDERED DANGEROUS UNDER NRC REGULATIONS MR HOPKINS SAID AT THE TIME THAT MARTIN MARIETTA DIDN'T IDENTIFY THE WASTE AS RADIOACTIVE DUE TO NATIONAL SECURITY CONCERNS AND THAT THE SUBSIDIARY'S MANAGEMENT OVERLOOKED AND MISINTERPRETED THE NRC REGULATION REQUIRING COMMERCIAL WASTEDISPOSAL FIRMS TO HAVE SPECIAL LICENSES IN THE ARKANSAS CASE STATE ATTORNEY GENERAL WINSTON BRYANT FILED SUIT AGAINST THE MARTIN MARIETTA UNIT AND DOE FOR SHIPPING WASTE TO AN EL DORADO ARK WASTEDISPOSAL FIRM THE SUIT ALLEGES THAT BOTH PARTIES KNOWINGLY SHIPPED WASTE CONTAINING LOWLEVEL RADIOACTIVE MATERIALS WITHOUT INFORMING STATE AUTHORITIES OR THE WASTEDISPOSAL COMPANY LAURENCE GRAVES CHIEF OF STAFF FOR MR BRYANT STRESSED THAT THE ISSUE AT HAND WAS LACK OF DISCLOSURE RATHER THAN ANY POTENTIAL HEALTH HAZARD WE DIDN'T WANT TO ALARM THE STATE THAT THERE WAS A RADIOACTIVE SPILL OR ANYTHING BUT THE WASTE WAS SHIPPED WITHOUT OUR KNOWLEDGE AND WE WANTED TO GET THE SUIT FILED MR GRAVES SAID A SPOKESMAN FOR MARTIN MARIETTA SAID THE COMPANY IS COOPERATING FULLY IN BOTH THE ALABAMA AND ARKANSAS CASES HE SAID THE COMPANY PREVIOUSLY HAD MADE BRIEF REFERENCES TO THE ALABAMA CASES IN SEC FILINGS THE ISSUE OF HAZARDOUSWASTE DISPOSAL IS COMPLICATED BY THE LACK OF A UNIFIED GOVERNMENT STANDARD FOR ACCEPTABLE RADIOACTIVITY LEVELS THE ENERGY DEPARTMENT ISSUED A MORATORIUM ON ALL OFFSITE SHIPMENTS OF HAZARDOUS WASTE IN 1992 WHICH REMAINS IN PLACE A SPOKESWOMAN SAID 9304160010 930416 WHO'S NEWS FOOD LION COFOUNDER CITES DISCORD FOR PLANS TO RESIGN SALISBURY NC AP FOOD LION INC COFOUNDER RALPH KETNER WHO SAID HE IS IN DISAGREEMENT WITH TOO MANY DECISIONS OF THE MANAGEMENT AND THE BOARD WILL STEP DOWN AS A DIRECTOR OF THE SUPERMARKET CHAIN I'M A FIRM BELIEVER THAT IF I'M BUMPING MY HEAD UP AGAINST THE WALL I QUIT SAID MR KETNER WHO FOUNDED FOOD LION WITH HIS BROTHER BROWN IN 1957 THE COMPANY IS A UNIT OF BELGIAN RETAILER DELHAIZE LE LION SA HE SAID HE DISAGREED WITH THE HANDLING OF RECENT PROBLEMS FACING THE CHAIN INCLUDING THE RESPONSE TO TELEVISED ALLEGATIONS OF UNSANITARY PRACTICES THE TREATMENT OF CONGRESSIONAL HEARINGS ON FOOD LION AND THE RECENT HIRING OF A NEW PUBLIC RELATIONS FIRM I'M LIMITED TO WHAT I CAN SAY BEING A DIRECTOR AND SECONDGUESSING SOMEBODY IS ALWAYS EASIER HE SAID FOOD LION VICE PRESIDENT VINCE WATKINS SAID THE COMPANY APPRECIATES ALL MR KETNER HAS DONE FOR US AND CERTAINLY RESPECT HIS DECISION A FOOD LION SPOKESMAN WOULDN'T COMMENT ON KETNER'S REASONS FOR STEPPING DOWN BUT HE SAID INCOMING DIRECTOR BERNARD FRANKLIN PRESIDENT OF LIVINGSTONE COLLEGE WILL PROVIDE A STRONG SUCCESSOR TO MR KETNER WHEN NOMINATED ON MAY 6 9304160009 930416 BUSINESS BRIEF LUKENS INC FIRM CONSIDERS SALE OF SOME OR ALL NONSTEEL OPERATIONS LUKENS INC SAID IT IS CONSIDERING THE SALE OF SOME OR ALL OF ITS NONSTEEL OPERATIONS AND IS MERGING CERTAIN FUNCTIONS OF ITS REMAINING BUSINESSES THE NONSTEEL OPERATIONS CALLED THE INDUSTRIAL OPERATIONS GROUP INCLUDE SAFETY AND CORROSIONPROTECTION PRODUCTS WHICH ACCOUNT FOR BETWEEN 150 MILLION AND 250 MILLION OF THE COATESVILLE PA COMPANY'S 12 BILLION IN ANNUAL SALES LUKENS SAID IT ALSO WILL CENTRALIZE VARIOUS FUNCTIONS OF ITS SPECIALTY AND CARBON STEEL UNITS INCLUDING FINANCE HUMAN RESOURCES RESEARCH PROCUREMENT AND EVENTUALLY MANUFACTURING AS PART OF THE REALIGNMENT THE MAKER OF CARBON AND SPECIALTY STEEL NAMED DENNIS M OATES 40 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF ITS LUKENS STEEL CO WHICH CHANGED ITS NAME TO CARBON & ALLOY STEEL GROUP MR OATES WHO HAD LED THE INDUSTRIAL OPERATIONS GROUP SUCCEEDS ROBERT SCHAAL 50 WHO BECOMES A SENIOR VICE PRESIDENT AND CONSULTANT TO LUKENS' CHAIRMAN 9304160008 930416 BIG THREE TO POST COMBINED PROFIT GAIN FOR 1ST QUARTER ON STRONGER TRUCK SALES BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE BIG THREE AUTO MAKERS ARE EXPECTED TO REPORT COMBINED FIRSTQUARTER EARNINGS OF AS MUCH AS 12 BILLION ON STRONGER US SALES OF PROFITABLE TRUCKS AND COSTSAVING ACTIONS THE HEALTHY PROFIT GAINS ARE EXPECTED EVEN IN THE MIDST OF A SLUGGISH ECONOMIC RECOVERY SALES OF US PASSENGER CARS JUST BEGAN TO PICK UP AT THE END OF THE FIRST QUARTER BUT SALES OF MORE PROFITABLE MINIVANS SPORTUTILITY VEHICLES AND PICKUPS REMAIN ROBUST THE HIGHER VOLUMES THOSE VEHICLES HAVE OFFSET WEAKER SALES OF THE LESS PROFITABLE PASSENGER CARS THE OVERALL SALES VOLUME RECOVERY AS WE REEMERGE FROM THE RECESSION HAS BEEN LESS THAN TYPICAL SAID CJ LAWRENCE INC'S AUTO ANALYST THOMAS M GALVIN BUT ACTUALLY THE EARNINGS RECOVERY IS MORE TYPICAL THE 1993 RESULTS ARE EXPECTED TO EASILY EXCEED THE BIG THREE'S COMBINED YEARAGO FIRSTQUARTER NET INCOME OF 5042 MILLION THE FIRST QUARTER GENERAL MOTORS CORP AND FORD MOTOR CO POSTED PROFITS IN SEVERAL QUARTERS HOWEVER THOSE YEAREARLIER GAINS WERE WIPED OUT AFTER GM AND FORD TOOK MASSIVE ONETIME NONCASH CHARGES FOR RETIREE MEDICAL BENEFITS CHRYSLER CORP SAID IT WILL TAKE A 47 MILLION AFTERTAX NONCASH CHARGE FOR RETIREE BENEFITS AGAINST ITS FIRSTQUARTER EARNINGS THIS YEAR AS A RESULT THE NO 3 AUTO MAKER SAID IT WILL REPORT MONDAY A LOSS AFTER TAKING THE CHARGE GM AND FORD ARE EXPECTED TO RELEASE FIRSTQUARTER RESULTS LATER THIS MONTH AUTO ANALYSTS SAID GM COULD REPORT EARNINGS RANGING BETWEEN 250 MILLION OR 35 CENTS A SHARE AND 370 MILLION OR 55 CENTS A SHARE THAT WOULD BE A SHARP IMPROVEMENT OVER EARNINGS OF 1793 MILLION OR TWO CENTS A SHARE THAT GM REPORTED A YEAR AGO GM LATER RESTATED ITS 1992 RESULT TO SHOW A FIRSTQUARTER LOSS OF 211 BILLION REFLECTING A CHARGE FOR RETIREE BENEFITS THE EXPECTED GAINS IN THE FIRST QUARTER WOULD PUT GM ON TRACK TO MEET ITS GOAL OF ACHIEVING BREAKEVEN RESULTS FOR ITS NORTH AMERICAN OPERATIONS IN 1993 BEFORE INTEREST TAXES AND CHARGES GM TOOK A BIG STEP IN THAT DIRECTION WHEN IT BEGAN RELYING LESS ON UNPROFITABLE SALES TO CARRENTAL COMPANIES THE AUTO MAKER HAS ALSO CUT ITS PRODUCTION COSTS BY CLOSING ASSEMBLY PLANTS HOWEVER GM AND FORD FACE CHALLENGES IN EUROPE WHERE BOTH AUTO MAKERS HAVE BEEN AFFECTED BY A STEEP DROP IN SALES ANALYSTS SAY GM IS LIKELY TO REPORT SMALLER PROFITS FROM ITS EUROPEAN OPERATIONS EVERYBODY WAS LOOKING FORWARD TO A CRUMMY YEAR IN GERMANY BUT NO ONE WAS ANTICIPATING THE REST OF EUROPE WOULD BE EQUALLY WEAK SAID MARYANN KELLER AN ANALYST WITH FURMAN SELZ FORD HASN'T TURNED A PROFIT FOR TWO STRAIGHT YEARS IN EUROPE BUT THE COMPANY IS HOPING THAT ITS NEW MONDEO SMALL SEDAN INTRODUCED EARLIER THIS YEAR COMBINED WITH ITS COSTCUTTING EFFORTS WILL RETURN ITS EUROPEAN OPERATIONS TO PROFITABILITY HOWEVER FORD'S US CAR AND LIGHT TRUCK SALES ARE BRISK AND HAVE OUTPACED THE INDUSTRY AS A RESULT FORD COULD REPORT FIRSTQUARTER EARNINGS AS LOW AS 53 MILLION OR 10 CENTS A SHARE OR AS MUCH AS 370 MILLION OR 75 CENTS A SHARE THAT COMPARES WITH A YEARAGO RESTATED FIRSTQUARTER LOSS OF 67 BILLION THE FIRSTQUARTER RESULTS WERE RESTATED TO REFLECT CHARGES TAKEN LAST YEAR FOR RETIREE BENEFITS BEFORE THE CHARGE FORD POSTED A FIRSTQUARTER GAIN OF 3379 MILLION OR 60 CENTS A SHARE FORD COULD DO BETTER IF THE RESULTS IN EUROPE ARE STRONGER THAN EXPECTED AND IF MARGINS IN NORTH AMERICA ARE BETTER THAN EXPECTED SAID PHILIP K FRICKE AUTO ANALYST WITH PRUDENTIAL SECURITIES ANALYSTS EXPECT CHRYSLER WILL PROVIDE THE FIRST QUARTER'S STRONGEST NUMBERS BEFORE TAKING ITS CHARGE THE CONSENSUS AMONG ANALYSTS IS THAT CHRYSLER WILL REPORT EARNINGS OF ABOUT 488 MILLION OR ABOUT 150 A SHARE BEFORE TAKING A 47 BILLION CHARGE RELATED TO RETIREE MEDICAL BENEFITS A YEAR AGO CHRYSLER REPORTED A FIRSTQUARTER LOSS OF 13 MILLION OR SEVEN CENTS A SHARE AFTER A ONETIME GAIN FROM ACCOUNTING CHANGES ANALYSTS SAID CHRYSLER'S IMPROVED EARNINGS COME PRIMARILY FROM A STRONG MIX OF PROFITABLE NEW PRODUCTS INCLUDING ITS LH MIDSIZE SEDANS INTRODUCED LAST FALL AND ITS HIGHEND SPORTS UTILITY VEHICLE THE JEEP GRAND CHEROKEE 9304160007 930416 TO SURVIVE A CRASH HEED THE ATTENDANT SAFETY EXPERTS SAY WEDNESDAY'S DC10 INCIDENT AGAIN RAISES THE QUESTION WHAT CAN PASSENGERS DO BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AIRLINE PASSENGERS TEND TO BE FATALISTIC ABOUT CRASHES EITHER THEY'LL SURVIVE OR THEY WON'T THEY TELL THEMSELVES AND THERE'S NOT MUCH TO BE DONE ABOUT IT HOWEVER FLIERS IN MANY ACCIDENTS DO HAVE A VOICE IN THEIR DESTINY AND THAT VOICE BELONGS TO THE AIRPLANE ATTENDANT THE PROBLEM SAFETY EXPERTS SAY IS THAT TRAVELERS OFTEN DON'T LISTEN SOPHISTICATED TRAVELERS MAY THINK THEY'VE HEARD IT ALL BEFORE SAYS TONY BRODERICK THE FEDERAL AVIATION ADMINISTRATION'S ASSOCIATE ADMINISTRATOR FOR REGULATION AND CERTIFICATION BUT IT'S RARE THAT A TRAVELER IS SOPHISTICATED ENOUGH TO TELL YOU WHERE THE TWO CLOSEST EXITS ARE AND WHAT TO DO IN CASE THERE'S A FIRE BEHIND ONE OF THE EXITS HIS OFFICE PROVIDES GUIDELINES FOR AIRLINES' PREDEPARTURE ANNOUNCEMENTS WEDNESDAY'S EVACUATION OF AN AMERICAN AIRLINES DC10 AT DALLAS/FORT WORT INTERNATIONAL AIRPORT RAISES THE ISSUE OF PASSENGER RESPONSIBILITY THIRTYTHREE OF THE 202 PASSENGERS ON BOARD WERE INJURED APPARENTLY ALL DURING THE EVACUATION AMONG THE INJURED IS A 79YEAROLD WOMAN WHO SUFFERED A BROKEN NECK THE FLIGHT FROM HAWAII SKIDDED TO A STOP WITH FLAMES BENEATH A WING AND PASSENGERS WERE EVACUATED DOWN INFLATABLE EMERGENCY CHUTES FEDERAL OFFICIALS ARE INVESTIGATING THE INCIDENT A SPOKESMAN FOR AMR CORP AMERICAN'S PARENT COMPANY ATTRIBUTED THE INJURIES TO THE CHUTES SAFETY EXPERTS SAY INJURIES AND EVEN FATALITIES OFTEN OCCUR IN ACCIDENTS BECAUSE OF CONFUSION OVER SUCH MATTERS AS THE LOCATION OF EMERGENCY EXITS AND OPERATION OF OXYGEN MASKS AND INFLATABLE LIFE JACKETS ALL TOPICS COVERED BEFORE ANY FLIGHT LEAVES THE GROUND RANDY EDWARDS AN ATTENDANT WITH AMERICAN SUGGESTS THAT EVEN EXPERIENCED FLIERS NEED TO LISTEN BECAUSE PASSENGERS OFTEN PANIC IN EMERGENCIES WE FIND THAT PEOPLE FORGET HOW TO LIFT UP THEIR BUCKLE MOST AUTO BELTS ARE PUSH BUTTON AND THEY TEND TO FREEZE SAYS MR EDWARDS WHO IS ALSO THE UNION SPOKESMAN FOR THE ASSOCIATION FOR PROFESSIONAL FLIGHT ATTENDANTS SIMILARLY PASSENGERS ON FLIGHTS OVER WATER ARE INSTRUCTED BEFORE TAKEOFF THAT IF THE PLANE IS EVACUATED THEY SHOULD INFLATE THEIR LIFE JACKETS ONLY AFTER LEAVING THE AIRCRAFT UNFORTUNATELY FRIGHTENED FLIERS OFTEN INFLATE THE JACKETS TOO SOON WHICH MAKES EXITING THE PLANE MORE DIFFICULT PEOPLE GENERALLY DON'T PAY ATTENTION UNTIL THEY FIND THEMSELVES IN AN ACCIDENT AND BY THAT TIME IT'S A LITTLE LATE TO LEARN WHAT THEY SHOULD HAVE KNOWN TO BEGIN WITH SAYS MR EDWARDS 9304160006 930416 FIVE FORESTPRODUCTS COMPANIES REPORT MIXED FIRST PERIOD ON DIVERGENT PRICES BY RALPH T KING JR AND ROBERT J BRENNAN STAFF REPORTERS OF THE WALL STREET JOURNAL FIVE FORESTPRODUCTS COMPANIES POSTED MIXED FIRSTQUARTER RESULTS REFLECTING THE DIVERGENT EFFECTS OF HIGH PRICES FOR LUMBER AND DEPRESSED PRICES FOR PAPER AND PULP COMPANIES IN THE PACIFIC NORTHWEST WITH BIG LUMBER OUTPUT INCLUDING WEYERHAEUSER CO POTLATCH CORP AND POPE & TALBOT INC SHOWED ENORMOUS OPERATING PROFIT GAINS WHILE CONCERNS THAT PREDOMINANTLY SELL PAPER AND PULP CHAMPION INTERNATIONAL CORP AND FEDERAL PAPER BOARD CO WERE HURT SCARCITIES CAUSED BY A SURGE IN NEWHOME CONSTRUCTION DROVE LUMBER PRICES TO RECORD LEVELS THOUGH PRICES HAVE BEEN DROPPING SINCE MIDMARCH MEANWHILE SLUGGISH ECONOMIC GROWTH AND OVERCAPACITY CONTINUE TO DEPRESS PAPER AND PULP PRODUCT PRICES RESULTS AT MOST OF THE FORESTPRODUCTS CONCERNS WERE ALSO AFFECTED BY NONRECURRING ITEMS MOSTLY ACCOUNTING ADJUSTMENTS RELATED TO POSTRETIREMENT BENEFITS OTHER THAN PENSIONS AND INCOME TAXES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WEYERHAEUSER CLOSED AT 4550 UP 175 POTLATCH ENDED AT 49625 UP 75 CENTS POPE & TALBOT WAS AT 2550 DOWN 25 CENTS CHAMPION INTERNATIONAL CLOSED AT 3225 UP 50 CENTS AND FEDERAL PAPER BOARD WAS AT 24 DOWN 50 CENTS WEYERHAEUSER'S ROBUST EARNINGS WHICH MORE THAN DOUBLED WERE BOLSTERED BY TWO LARGE GAINS THE COMPANY BOOKED A 44 MILLION GAIN FOR THE PREVIOUSLY ANNOUNCED SALE OF ITS DIAPER BUSINESS AND A 52 MILLION GAIN FROM THE EXTINGUISHMENT OF DEBT EXCLUDING THOSE ITEMS NET INCOME WOULD HAVE BEEN 1335 MILLION OR 65 CENTS A SHARE REPRESENTING A 54 INCREASE THE TACOMA WASH COMPANY'S SALES CLIMBED 6 TO 23 BILLION FROM 22 BILLION A WEYERHAUESER OFFICIAL SAID THE COMPANY HAS ACHIEVED MOST OF THE GOALS SET UNDER A 1989 RESTRUCTURING PLAN CHAMPION STAMFORD CONN SAID THAT WHILE ITS FIRSTQUARTER LOSS OF 38 CENTS A SHARE WAS WIDER THAN THE YEAREARLIER LOSS OF 30 CENTS A SHARE BEFORE NONRECURRING ITEMS THE RESULTS WERE IMPROVED FROM THE FOURTHQUARTER LOSS OF 56 CENTS A SHARE CHAMPION SAID PRICES FOR SOME PAPER GRADES HAD IMPROVED BY THE END OF THE QUARTER AT LONG LAST THERE'S LIGHT AT THE END OF THE TUNNEL FOR PAPER PRICES SAID ANDREW C SIGLER CHAIRMAN AND CHIEF EXECUTIVE HE SAID THE PAPER PRICE INCREASES CAME TOO LATE TO HELP THE FIRST QUARTER MUCH BUT WILL HAVE A BIGGER IMPACT ON SECONDQUARTER RESULTS CHAMPION EXPECTS TO BEGIN GENERATING FREE CASH FLOW BY THE END OF THIS YEAR HE ADDED SALES AT CHAMPION ROSE 55 TO 126 BILLION FROM 12 BILLION CARRIED BY WOOD PRODUCTS SALES WHICH ROSE 29 TO 3411 MILLION FROM 2654 MILLION A YEAR AGO PAPER SALES WERE OFF SLIGHTLY CHAMPION'S 1992 QUARTER INCLUDED A 4543 MILLION CHARGE TO REFLECT ACCOUNTING CHANGES FOR POSTRETIREMENT BENEFITS AND FOR INCOME TAXES ALSO THE 1992 QUARTER INCLUDED 20 MILLION OF NONRECURRING PRETAX INCOME FROM SALE OF SOME TIMBERLANDS AND FROM SETTLEMENTS RECEIVED FOR CERTAIN ENVIRONMENTAL LITIGATION SAN FRANCISCOBASED POTLATCH SAID PROFITS PRIOR TO A 317 MILLION CHARGE FROM ACCOUNTING CHANGES ROSE ABOUT 40 TO 222 MILLION OR 76 CENTS A SHARE SALES WERE UP 8 TO 3615 MILLION FROM 3345 MILLION POTLATCH CHAIRMAN RICHARD MADDEN INDICATED THAT SECONDQUARTER RESULTS COULD BE HURT BY VOLATILITY IN WOOD PRODUCT PRICES AS WELL AS BY THE SLUMPING DEMAND FOR PAPER AT POPE & TALBOT PORTLAND ORE SALES SURGED 32 TO 1676 MILLION FROM 1271 MILLION PETER POPE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IT IS IMPOSSIBLE TO PREDICT LUMBER PRICES FOR THE BALANCE OF THE YEAR BUT WE BELIEVE THEY WILL REMAIN HIGH ENOUGH TO PROVIDE A GOOD EARNINGS BASE FOR FUTURE QUARTERS FEDERAL PAPER BOARD MONTVALE NJ STILL HAD A SUBSTANTIAL DROP IN EARNINGS EXCLUDING A 9 MILLION GAIN A YEAR AGO FOR AN ACCOUNTING CHANGE FOR INCOME TAXES SALES WERE OFF SLIGHTLY TO 3198 MILLION FROM 323 MILLION ITS 12WEEK QUARTER ENDED MARCH 27 JOHN R KENNEDY FEDERAL PRESIDENT TERMED THE RESULTS DISAPPOINTING PULP PRICES SHOULD SHOW SOME IMPROVEMENT IN THE SECOND QUARTER WITH AN EXPECTED PRICE INCREASE THIS MONTH MR KENNEDY SAID BLEACHED PAPERBOARD ANOTHER BIG PRODUCT FOR THE COMPANY FURTHER WEAKENED DURING THE QUARTER WITH PRICE DISCOUNTING AND UNCERTAIN MARKET CONDITIONS FOR BLEACHED BOARD RECYCLED PAPERBOARD BACKLOGS REMAINED FIRM THOUGH 9304160005 930416 G7 NATIONS UNVEIL 284 BILLION PLAN TO AID EXSOVIET UNION BACK YELTSIN BY CARLA ANNE ROBBINS AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE GROUP OF SEVEN INDUSTRIAL DEMOCRACIES UNVEILED THEIR PLANS TO PROVIDE 284 BILLION IN AID FOR THE FORMER SOVIET UNION THE BIGGEST AND MOST AMBITIOUS PACKAGE EVER PROMISED FROM THE WEST BUT WHETHER THE HELP REACHES ITS DESTINATION WILL DEPEND ON RUSSIAN PRESIDENT BORIS YELTSIN'S POLITICAL WILL AND HIS CHANCY POLITICAL FUTURE THERE'S EVEN SOME QUESTION WHETHER THE US WILL BE ABLE TO LIVE UP TO ITS COMMITMENT OF AN ADDITIONAL 18 BILLION IN NEW BILATERAL AID FOR RUSSIA AND THE OTHER FORMER SOVIET REPUBLICS US OFFICIALS WHO HAVE BEEN VAGUE ABOUT BOTH THE MECHANICS AND THE POLITICS OF THE FUNDING SAID THE NEW COMMITMENT WOULD BE IN ADDITION TO THE 11 BILLION THEY HAVE ALREADY REQUESTED FOR RUSSIA AND THE OTHER FORMER REPUBLICS IN THEIR FISCAL 1994 BUDGET THE ADMINISTRATION IS STILL NEGOTIATING DETAILS INTERNALLY AND WITH CONGRESS OFFICIALS RETURNING FROM TOKYO REFUSED TO TELL REPORTERS PRECISELY WHERE THE NEW MONEY WOULD COME FROM BUT OTHER ADMINISTRATION OFFICIALS AND CONGRESSIONAL STAFFERS SAID MR CLINTON PROBABLY WILL SUBMIT A 18 BILLION EMERGENCY SUPPLEMENTAL SPENDING BILL TO CONGRESS SHORTLY ESSENTIALLY ASKING CONGRESS TO ADD TO THE DEFICIT TO AID RUSSIA DESPITE SOME INTENSIVE LOBBYING FROM PRESIDENT CLINTON MANY IN CONGRESS REMAIN SKEPTICAL ABOUT INCREASED AID AND THE AMERICAN PUBLIC IS EVEN MORE SO WITH A REFERENDUM ON MR YELTSIN'S RULE LESS THAN TWO WEEKS AWAY THOUGH PRESIDENT CLINTON CLEARLY HAS DECIDED TO TAKE ON THE POLITICAL FIGHT SPEAKING AFTER THE TWODAY G7 MINISTERIAL MEETING ENDED HERE SECRETARY OF STATE WARREN CHRISTOPHER SAID HE WANTED TO UNDERSCORE TO THE AMERICAN PEOPLE THAT THE US EFFORT TO AID REFORM IN RUSSIA IS IN NO WAY A PROGRAM OF CHARITY HE ADDED THAT THE STAKES FOR THE AMERICAN PEOPLE COULD NOT BE HIGHER MR CLINTON'S G7 ALLIES ARE HAVING SIMILAR POLITICAL PROBLEMS THEIR OWN BILATERAL COMMITMENTS THIS WEEK FELL FAR SHORT OF AMERICAN EXPECTATIONS PRESIDENT CLINTON WILL LOBBY JAPANESE PRIME MINISTER KIICHI MIYAZAWA TO GIVE EVEN MORE WHEN THE TWO LEADERS MEET TODAY IN WASHINGTON BUT THE PRESIDENT IS UNLIKELY TO GET MUCH SATISFACTION JAPANESE FINANCE MINISTER YOSHIRO HAYASHI TOLD REPORTERS YESTERDAY THAT THE 18 BILLION PACKAGE PROMISED BY JAPAN THIS WEEK WHICH CONSISTS MAINLY OF TRADE CREDITS IS THE MAXIMUM EFFORT WE CAN MAKE AT THIS POINT STILL US OFFICIALS SAY THE TOKYO PACKAGE HAS BEEN DELIBERATELY DESIGNED TO MAXIMIZE THE CHANCES OF DELIVERY THE 284 BILLION PACKAGE INCLUDES 124 BILLION IN LOANS FROM THE INTERNATIONAL MONETARY FUND THE WORLD BANK AND THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ANOTHER 6 BILLION IN THE IMFSPONSORED RUBLE STABILIZATION FUND THAT WAS CREATED LAST YEAR BUT STILL HASN'T BEEN TAPPED AND 10 BILLION IN LOANS AND LOAN GUARANTEES FROM THE US EXPORTIMPORT BANK AND ITS COUNTERPARTS IN OTHER COUNTRIES NOT INCLUDED IN THE 284 BILLION TOTAL IS THE 15 BILLION IN DEBT PAYMENTS THAT RUSSIA'S FOREIGN CREDITORS PREVIOUSLY AGREED TO RESCHEDULE THOSE DEBT PAYMENTS WERE DUE THIS YEAR THE NEW US AID PLEDGE ALSO ISN'T INCLUDED IN THE 284 BILLION TOTAL THE US EXPORTIMPORT BANK YESTERDAY SAID IT SIGNED AN AGREEMENT WITH RUSSIA SETTING OUT THE PRINCIPLES UNDER WHICH IT IS PREPARED TO LEND 2 BILLION OR MORE FOR RUSSIAN PURCHASES OF US GOODS AND SERVICES TO REVITALIZE OIL AND GAS PRODUCTION FACILITIES THE BANK ALSO SAID IT MADE A PRELIMINARY COMMITMENT FOR THE FIRST 500 MILLION IN LOANS SUBJECT TO IRONING OUT LEGAL DETAILS AND APPROVAL OF SPECIFIC PROJECTS UP TO NOW RUSSIA HAS RELIED ON WESTERN EUROPE FOR MOST OF ITS ENERGYRELATED IMPORTS ONLY ABOUT HALF OF A 24 BILLION INTERNATIONAL BAILOUT PROMISED BY PRESIDENT BUSH LAST YEAR EVER MATERIALIZED MAINLY BECAUSE RUSSIA FAILED TO MEET THE IMF'S STRICT LENDING CRITERIA MANY ORDINARY RUSSIANS DOUBT THAT ANY OF THE HELP WAS EVER DELIVERED PRESIDENT CLINTON HAS SWORN TO AVOID THAT PROBLEM THIS TIME AROUND RUSSIAN FINANCE MINISTER BORIS FYODOROV APPLAUDED THE IMPULSE SAYING THAT RUSSIA HOPES THE WHOLE PROCESS WILL BE MUCH MORE COORDINATED THAN BEFORE NO STRINGS ATTACHED SOME 10 BILLION IN EXPORT CREDITS GRANTED BY THE US BRITAIN JAPAN AND OTHERS WILL BE OFFERED WITHOUT ANY CONDITIONS INVOLVING RUSSIA'S MACROECONOMIC PERFORMANCE AND THERE ARE NO STRINGS ATTACHED TO THE US AID COMMITMENT EVEN MORE IMPORTANT SAY US OFFICIALS THE PACKAGE IS DESIGNED TO GET HELP TO ORDINARY RUSSIANS SWIFTLY AND VISIBLYBOLSTERING MR YELTSIN'S POLITICAL PROSPECTS AND HIS CHANCES OF PURSUING NECESSARY BUT PAINFUL ECONOMIC REFORMS INCLUDED ARE FUNDS TO RESETTLE RUSSIAN MILITARY PERSONNEL TO ENCOURAGE SMALL BUSINESSES TO EXPAND CITIZENTOCITIZEN EXCHANGE PROGRAMS AND TO CLEAN UP THE ENVIRONMENT THE MOST INNOVATIVE AMERICAN IDEA IS THE SUGGESTION THAT THE G7 CREATE A 4 BILLION INDUSTRIAL PRIVATIZATION FUND INTENDED TO ENCOURAGE THE SALE OR SHUTDOWN OF RUSSIAN STATE INDUSTRIES AND CUSHION SOME OF THE SOCIAL BLOW BUT THE FUND COULD HAVE PROBLEMS GETTING OFF THE GROUND THE US HAS MADE ITS 500 MILLION CONTRIBUTION CONTINGENT ON MATCHING CONTRIBUTIONS FROM OTHER G7 ALLIES AND THE MULTILATERAL LENDING INSTITUTIONS THE G7 AGREED THIS WEEK ONLY TO STUDY THE IDEA THE FOREIGN MINISTERS LIKED THE IDEA BUT THE FINANCE MINISTERS WERE SHELLSHOCKED SAID AN OFFICIAL TRAVELLING WITH SECRETARY CHRISTOPHER PERHAPS MOST IMPORTANT THE CLINTON ADMINISTRATION MANAGED AFTER INTENSE LOBBYING TO CONVINCE THE MULTILATERAL BANKS TO RELAX THEIR STRINGENT LENDING CONDITIONS FOR RUSSIA A MAJOR POLICY SHIFT BUT RUSSIA COULD HAVE TROUBLE MEETING EVEN THE RELAXED CONDITIONS THE FIRST 2 BILLION IN AID AT LEAST SHOULD BE EASY TO GET THAT MONEY ALL RUSSIA HAS TO DO IS PROMISE TO IMPOSE SOME RESTRAINT ON ITS CENTRAL BANK WHICH HAS BEEN PRINTING RUBLES FURIOUSLY TO PROP UP FAILING RUSSIAN INDUSTRIES THAT HAS DRIVEN INFLATION UP TO A RATE OF NEARLY 30 A MONTH ANOTHER 2 BILLION IN LOANS WOULD BECOME AVAILABLE AS SOON AS THOSE PROMISES SHOW EARLY FRUIT BUT EVEN WITH SUCH SOCALLED STREAMLINED CONDITIONALITY THE REST OF THE LOANS COULD BE FAR TOUGHER FOR MOSCOW TO GET TO BEGIN DRAWING ON A 4 BILLION IMF STANDBY LOAN AND THE 6 BILLION FUND TO HELP STABILIZE THE RUBLE RUSSIA FIRST WILL HAVE TO SLASH ITS BUDGET DEFICIT REDUCE CREDITS AND IMPOSE FURTHER HARDSHIPS ON ITS ALREADY SUFFERING PEOPLE US OFFICIALS BELIEVE MR YELTSIN FULLY UNDERSTANDS THE STAKES AND IS READY TO MAKE THE TOUGH CHOICES AND THEY SAY THE 4 BILLION IN QUICK RELEASE FUNDS SHOULD MAKE HIS TASK EASIER BY CUSHIONING THE INEVITABLE ECONOMIC AND SOCIAL IMPACT REPORTS OUT OF RUSSIA ARE LESS CERTAIN IF MR YELTSIN LOSES THE APRIL 25 REFERENDUM ALL BETS ARE OFF AND EVEN IF HE WINS THERE COULD BE PROBLEMS CAMPAIGNING FURIOUSLY ACROSS THE LENGTH OF THE COUNTRY MR YELTSIN HAS BEEN DOLING OUT PROMISES AND FAVORS LIKE THE BEST CHICAGO WARD HEALER AND THE REFERENDUM MAY NOT PRODUCE A CLEAR OUTCOME ESPECIALLY IF RUSSIANS FAIL TO GO TO THE POLLS IN CONVINCING NUMBERS IF MR YELTSIN'S STRUGGLES WITH THE CONSERVATIVECONTROLLED PARLIAMENT CONTINUE HE WILL BE EVEN LESS ABLE TO ASK THE RUSSIAN PEOPLE TO MAKE SACRIFICES AMERICAN OFFICIALS REFUSED TO SPECULATE ON ANY OF THE POSSIBLE NEGATIVE OUTCOMES WE ARE GOING FORWARD ON THE ASSUMPTION THAT PRESIDENT YELTSIN WILL PREVAIL SAID SECRETARY CHRISTOPHER IF MR YELTSIN FAILS HE ADDED THE WORLD WILL BE A CONSIDERABLY MORE DANGEROUS PLACE 9304160004 930416 BARNETT QUITS ATLANTA ADDS FLORIDA UNITS IN BANK SOUTH DEAL ATLANTA BARNETT BANKS INC HAS AGREED TO SELL ITS ATLANTA BANKS TO BANK SOUTH CORP BOWING OUT OF A MARKET WHERE IT WAS NEVER ABLE TO COMMAND A LARGE ENOUGH PRESENCE TO BE A MAJOR FORCE AT THE SAME TIME BARNETT FLORIDA'S LARGEST BANK WILL BUY BANK SOUTH'S PENSACOLA FLA OPERATIONS STRENGTHENING ITS EXISTING PRESENCE IN THAT MARKET AS PART OF THE DEAL BARNETT BASED IN JACKSONVILLE FLA WILL GET A 39 STAKE IN BANK SOUTH OF ATLANTA OR ABOUT 16 MILLION SHARES VALUED AT ABOUT 22 MILLION PLUS AN UNDISCLOSED SUM OF CASH BARNETT'S STRATEGY IS TO BE FIRST SECOND OR THIRD IN MARKET SHARE IN ITS MARKETS IN ORDER TO LEVERAGE ITS OPERATIONS AND DERIVE EFFICIENCIES OF SCALE WHICH ARE BECOMING INCREASINGLY IMPORTANT TO BANKS LACKING THE SIZE IN ATLANTA TO EKE OUT THOSE EFFICIENCIES BARNETT HAS LONG BEEN DISSATISFIED WITH THE LEVEL OF PROFITABILITY OF ITS TWO ATLANTAAREA BANKS WHICH HAVE 784 MILLION IN ASSETS BARNETT'S ATLANTA OPERATIONS ARE WORTH A HECK OF A LOT MORE TO US THAN THEY WERE TO THEM SAID RALPH HUTCHINS BANK SOUTH'S CHIEF FINANCIAL OFFICER WE CAN TAKE ADVANTAGE OF THE MARKET NICHE AND THEY COULDN'T GET THE SAME BANG FOR THE BUCK WE CAN BARNETT WILL HOWEVER KEEP ITS SOUTHEAST AND SOUTHWEST GEORGIA OPERATIONS WHERE IT COMMANDS A MORE DOMINANT MARKET SHARE MEANWHILE BANK SOUTH WHICH HAD MADE ITS FORAY INTO PENSACOLA IN 1986 WHEN IT WAS PLANNING FURTHER FLORIDA EXPANSION NOW FINDS THAT OPERATION WHICH HAS ASSETS OF 422 MILLION TO BE SOMETHING OF A FARFLUNG OUTPOST OUT OF LINE WITH ITS STRATEGY OF FOCUSING ON BEING A HOMETOWN ATLANTA BANK 9304160003 930416 WHO'S NEWS RASI QUITS BANK LEU TO JOIN SWISS BANK AS GENERAL MANAGER ZURICH SWITZERLAND IN AN UNEXPECTED MOVE AT THE TOP ECHELON OF SWISS BANKING BANK LEU CHIEF EXECUTIVE OFFICER ROLAND C RASI WILL JOIN SWISS BANK CORP SWISS BANK SAID MR RASI 48 YEARS OLD WILL BECOME A GENERAL MANAGER AND MEMBER OF THE EXECUTIVE BOARD AS OF JUNE 15 BANK LEU IS A MEMBER OF CS HOLDING WHICH INCLUDES LEADING SWISS BANK CREDIT SUISSE AND THE GLOBAL INVESTMENT BANKER CS FIRST BOSTON GROUP INC NEW YORK THE DEPARTURE OF MR RASI IS ONE OF A NUMBER OF RECENT PERSONNEL CHANGES WITHIN THE CS HOLDING ORGANIZATION ON MARCH 31 CREDIT SUISSE'S LONGTIME AND RESPECTED CHIEF EXECUTIVE ROBERT A JEKER RESIGNED AFTER 40 YEARS WITH THE BANK TO TAKE OVER MANAGEMENT OF THE INDUSTRIAL INTERESTS OF SWISS TYCOON STEPHAN SCHMIDHEINY IN THE US A WAVE OF TRADERS AND INVESTMENT BANKERS HAVE RECENTLY LEFT CS FIRST BOSTON REPORTEDLY IRKED BY COMPENSATION SAID TO BE LESS THAN THAT OF COMPETITORS WHILE STAFF CHANGES MAY BE AN EVERYDAY AFFAIR IN THE US TOP SWISS BANKERS ARE GENERALLY LOATH TO LEAVE THE COMPANY WHERE THEY HAVE MADE THEIR CAREER THE BIG QUESTION IS WHY TWO TOP DECISION MAKERS ARE LEAVING THE ORGANIZATION SAID A PRIVATE BANK ANALYST IN GENEVA OF THE DEPARTURES OF MESSRS RASI AND JEKER HOWEVER OTHER ANALYSTS POINT OUT THAT SWISS BANKERS ARE MOVING AROUND MORE AS THE SWISS BANKING INDUSTRY UNDERGOES RAPID CHANGE IN ADJUSTING TO TOUGHER BUSINESS CONDITIONS OF THE 1990S MR RASI WILL TAKE OVER AS HEAD OF SWISS BANK'S LOGISTICS GROUP WITH RESPONSIBILITY FOR ACCOUNTING CONTROLLING TAXES REAL ESTATE AND SECURITY ON JAN 1 1994 9304160002 930416 CREDIT MARKETS YIELD ON LONG TREASURY FALLS TO 16YEAR LOW DOWNGRADE THREAT SINKS STONE CONTAINER BONDS BY GENE COLTER AND TERENCE DONNELLY SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE BENCHMARK 30YEAR TREASURY BOND POSTED DECENT GAINS YESTERDAY AS ITS YIELD DROPPED TO ITS LOWEST LEVELS IN 16 YEARS AIDED BY WALL STREET DEALERS AND MONEY MANAGERS WHO USED IT TO FINANCE THEIR TRADING POSITIONS THE BOND ROSE MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH 1000 FACE VALUE TO 105 6/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO 671 THE LOWEST SINCE THE GOVERNMENT BEGAN REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 AND DOWN FROM 675 ON TUESDAY MEANWHILE THE JUNK BONDS OF STONE CONTAINER CORP DROPPED SHARPLY AFTER STANDARD & POOR'S CORP SAID IT MIGHT DOWNGRADE THE CHICAGO PAPER MANUFACTURER'S CREDIT RATING CITING ITS WEAKENING FINANCIAL FLEXIBILITY DETERIORATING EARNINGS AND HEAVY DEBT LOAD EXCEPT FOR SHORTLIVED PRICE GYRATIONS NEAR MIDDAY TRADING IN THE TREASURY MARKET WAS QUIET THROUGHOUT THE SESSION THOSE GYRATIONS WERE DUE TO A LARGE BUYER WHO HAD PUT CONSIDERABLE MONEY INTO WHAT IS KNOWN AS A CURVEFLATTENING TRADE DEALERS SAID IN THAT TRADE THE BUYER LIKELY SOMEONE REPRESENTING A SPECULATIVE FUND BOUGHT TREASURY BONDS WHILE SELLING FIVEYEAR NOTES AS THE BUYER DROVE UP BOND PRICES RATES AT THE LONG END OF THE TREASURY YIELD CURVE FELL THUS FLATTENING THE CURVE BECAUSE THERE WERE FEW PLAYERS IN THE MARKET AT THE TIME THE BUYER BEGAN SCOOPING UP BONDS THE PRICE MOVES WERE EXAGGERATED BUT FEW DEALERS OR OTHER INVESTORS WERE WILLING TO FOLLOW THAT COURSE OF ACTION AND PRICES FELL BACK STILL THE SPREAD BETWEEN THE YIELD OF THE 30YEAR BOND AND THAT OF THE TWOYEAR NOTE HAD NARROWED TO 296 PERCENTAGE POINTS BY LATE YESTERDAY FROM THREE PERCENTAGE POINTS LATE WEDNESDAY THE PRICE GAINS MADE BY THE 30YEAR TREASURY BOND SEEMED TO HAVE BEEN SPURRED BY A SHORTAGE OF THE SECURITY IN THE REPURCHASE MARKET IN THIS MARKET WALL STREET DEALERS IN NEED OF A SECURITY OFFER LOANS TO HOLDERS OF THE ISSUE WHO IN TURN OFFER UP THE SECURITY AS COLLATERAL AS DEALERS' DEMAND FOR THE SECURITY GROWS THEY MUST DROP THEIR LOAN RATES OFTEN MAKING IT UNATTRACTIVE OR EVEN COSTLY FOR THEM TO FINANCE POSITIONS A SPOKESMAN FOR THE FEDERAL RESERVE BANK OF NEW YORK SAID YESTERDAY THAT IT HAS BEEN ASKING PRIMARY DEALERS TO REPORT ON THEIR DEALINGS IN THE 30YEAR TREASURY BOND SINCE TUESDAY BECAUSE THAT ISSUE IS ON SPECIAL IN THE REPURCHASE MARKET BY THE END OF THE DAY THE 30YEAR TREASURY BOND TRADED AT A REPURCHASE RATE NEAR 0 SAID TRADERS DEALERS POINT OUT THOUGH THAT THE BOND HAS BEEN TRADING ON SPECIAL FOR SOME TIME NORMALLY THE REPURCHASE MARKET HAS ALMOST NO PLAY IN THE DAILY TRADING SESSION AND THE FACT THAT IT DID YESTERDAY SHOWS HOW SUBDUED TRADING WAS WE'RE BASICALLY SCRAPING UP AGAINST THE PRICE HIGHS THAT WERE REACHED IN EARLY MARCH SAID WILLIAM SULLIVAN DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC THAT'S A LIMITING PERSPECTIVE ON THE MARKET'S POTENTIAL IN THE NEAR TERM LIKE MANY MARKET WATCHERS MR SULLIVAN FEELS THAT THE MARKET LACKS THE IMPETUS TO BURST OUT OF ITS CURRENT TRADING RANGES NEITHER NEW TRADING TRENDS NOR RADICAL NEWS ON THE STATE OF THE ECONOMY PRESENTS ITSELF AS SUCH A FORCE CONTEND MR SULLIVAN AND OTHERS WE'VE GONE FROM AN OVERLY PESSIMISTIC VIEW ON THE ECONOMY TO WHERE WE HAVE A MORE BALANCED APPROACH TO THE ECONOMY'S OVERALL POTENTIAL MR SULLIVAN CONTINUED WE'VE PROBABLY REACHED AN EQUILIBRIUM LEVEL AND THAT HELPS EXPLAIN WHY THE MARKET HAS MOVED SIDEWAYS OVER THE LAST WEEK OR SO EVEN FIXEDINCOME MUTUALFUND MANAGERS WHO CONTINUE TO ENJOY RECORD AMOUNTS OF CASH POURING INTO THEIR COFFERS HAVE SLOWED THEIR BUYING PACE YET THEIR INERTIA COULD HURT THEM ANALYSTS SAY BECAUSE IN THE LOWRATE ENVIRONMENT MANAGERS CAN'T AFFORD TO KEEP MUCH MONEY IN SHORTTERM LOW YIELDING SECURITIES TODAY'S ECONOMIC DATA AREN'T LIKELY TO BE THE BREAKOUT TOOLS THE BOND MARKET IS LOOKING FOR TRADERS SAID INDUSTRIAL PRODUCTION FIGURES FOR MARCH ARE DUE THIS MORNING AS ARE MARCH CAPACITY UTILIZATION DATA WALL STREET ECONOMISTS GENERALLY LOOK FOR INDUSTRIAL PRODUCTION AT THE NATION'S PLANTS TO HAVE FALLEN BY 01 AFTER A 04 RISE IN FEBRUARY THESE ANALYSTS SEE CAPACITY UTILIZATION COMING IN AT 797 A DROP FROM 799 IN FEBRUARY THAT WOULD FURTHER INDICATE CONTRACTION IN THE MANUFACTURING SECTOR JUNK BONDS OF STONE CONTAINER PLUNGED YESTERDAY AFTER STANDARD & POOR'S SAID IT MIGHT DOWNGRADE THE COMPANY'S CREDIT RATING S&P SAID IT PLACED ITS DOUBLEBMINUS SENIOR DEBT RATING AND SINGLEB SUBORDINATED DEBT AND PREFERRED STOCK RATINGS OF STONE CONTAINER ON CREDITWATCH WITH NEGATIVE IMPLICATIONS ACCORDING TO S&P THE COMPANY HAS A TOTAL CONSOLIDATED DEBT OF 5 BILLION STONE CONTAINER'S 115 SENIOR SUBORDINATED NOTES DUE 1999 DROPPED 5 1/8 TO 85 IN TRADING OR 5125 FOR A BOND WITH 1000 FACE VALUE IN THE BROADER HIGHYIELD MARKET MOST JUNK BONDS ENDED UNCHANGED TO 1/8 POINT HIGHER FEW BONDS CHANGED HANDS HOWEVER PARTLY BECAUSE MANY JUNKBOND INVESTORS ARE AT A NEW YORK CONFERENCE INVESTMENTGRADE ISSUES MATURING IN SEVEN TO 10 YEARS ENDED UNCHANGED WHILE BONDS WITH LONGER MATURITIES ROSE 1/8 POINT INVESTORS WERE LARGELY ON THE SIDELINES TODAY TRADERS SAID HOWEVER A FLURRY OF BUYING SURFACED LATE IN THE SESSION WHEN PRICES FELL BRIEFLY AS INVESTORS SHOPPED FOR BONDS TRADING AT LOWER PRICES THAN WHEN THE MARKET OPENED TWO COMPANIES ACCOUNTED FOR THE BULK OF YESTERDAY'S 17 BILLION ISSUANCE TEXAS UTILITIES ELECTRIC CO A UNIT OF TEXAS UTILITIES CO FLOATED 500 MILLION OF FIRSTMORTGAGE BONDS WHILE MARTIN MARIETTA CORP RAISED 700 MILLION OF NOTES AND DEBENTURES SEPARATELY MOODY'S INVESTORS SERVICE INC SAID IT LOWERED THE RATINGS ON THE LONGTERM DEBT OF AMR CORP AND ITS AMERICAN AIRLINES UNIT AS WELL AS AMERICAN AIRLINES'S SHORTTERM RATING FOR COMMERCIAL PAPER AMR'S INDUSTRIAL REVENUE BONDS WERE LOWERED TO BAA2 FROM BAA1 THE COMPANY'S SENIOR UNSECURED DEBT RATING DROPPED TO BAA3 FROM BAA2 THE BAA3 RATING IS MOODY'S LOWEST INVESTMENTGRADE RATING LAST MONTH S&P TOOK A MORE DRASTIC STEP KNOCKING DOWN AMR'S SENIOR DEBT RATING TO DOUBLEBPLUS A JUNKBOND RATING FROM TRIPLEB MEANWHILE JUNK BONDS OF SOUTHLAND CORP WHICH OPERATES 7ELEVEN STORES IN THE US JUMPED ON RUMORS THAT A LARGE JAPANESE SHAREHOLDER ITOYOKADO CO PLANNED TO TAKE THE COMPANY PRIVATE SOUTHLAND'S 5 SUBORDINATED NOTES DUE 2003 ENDED 3 1/4 HIGHER AT 65 1/4 THE NOTES HAD TRADED AS HIGH AS 66 1/2 EARLIER IN THE DAY MUNICIPAL BONDS WERE GENERALLY STEADY TO 1/8 POINT HIGHER IN LATE TRADING BUT SCATTERED ISSUES GAINED 3/8 OR MORE THERE'S SOME MONEY AROUND SEARCHING FOR BONDS SAID A NEW YORK TRADER NOTING THAT THE MAIN FACTORS STILL HELPING THE MARKET ARE THE SLIGHT SLOWDOWN IN THE PACE OF TAXEXEMPT ISSUANCE AND THE TREASURY BOND MARKET'S STRENGTH IN LATE DEALINGS THE PUTNAM COUNTY GA 6 POLLUTION CONTROL REVENUE BONDS DUE 2018 WERE 1/8 FIRMER AT 100 YIELDING 598 SEPARATELY MOODY'S INVESTORS SERVICE INC SAID IN A SPECIAL REPORT CALLED MUNICIPAL FOCUS ON FLORIDA COUNTIES THAT FLORIDA COUNTIES HAVE GENERALLY FAVORABLE CREDIT RATINGS COMPARED WITH THE REST OF THE NATION ACCORDING TO THE REPORT THE GENERALLY FAVORABLE RATINGS ARE DUE TO THE RAPID GROWTH IN THE TAX BASE WHICH IS DRIVEN BY HISTORICALLY STRONG POPULATION GROWTH AND A DIVERSE AND GENERALLY HEALTHY ECONOMY INDIRECTLY MOODY'S ADDED THE DISTRIBUTION MAY BE DUE TO THE PREVALENCE OF BOND INSURANCE THE RATING AGENCY ALSO NOTED IN THE REPORT THAT THE MAJORITY OF UNENHANCED DEBT ISSUED BY FLORIDA COUNTIES IS SECURED BY SPECIAL TAXES RATHER THAN THE PROPERTY TAXES THAT SECURE GENERAL OBLIGATION BONDS BECAUSE THEY ARE USUALLY BASED ON CONSUMPTION OR USE THESE SPECIAL TAXES TEND TO LESSEN THE BURDEN ON ESTABLISHED RESIDENTS AND INCREASE THE BURDEN ON NEWCOMERS AND VISITORS MOODY'S SAID MORTGAGE SECURITIES WERE NARROWLY MIXED WITH SELLERS PREDOMINANT AS VARIED INTERESTRATE OUTLOOKS CONTINUE TO SHAPE PREPAYMENT AND TRADING STRATEGIES THE 6 1/2 TO 7 1/2 SECURITIES FROM FANNIE MAE FREDDIE MAC AND GINNIE MAE WERE UP SLIGHTLY WHILE HIGHER COUPON ISSUES WERE UNCHANGED TO MODERATELY LOWER NEW ISSUANCE WAS LIMITED MEANWHILE TO TWO FREDDIE MAC REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS TOTALING 500 MILLION THE COLLATERAL USED WAS GINNIE MAE 30YEAR 8 SECURITIES AND FREDDIE MAC 30YEAR 6 1/2 SECURITIES I THINK THE MARKET'S ALL RIGHT IN HERE SAID ROBERT WASILEWSKI VICE PRESIDENT OF FIXEDINCOME/MBS AT ASB CAPITAL MANAGEMENT IN WASHINGTON BUT TO SAY THAT YOU HAVE TO BELIEVE THE BOND YIELD'S NOT GOING TO DROP TO 6 1/2 AGAIN A 1/4POINT DROP IN BOND YIELDS IS LIKELY TO IGNITE ANOTHER BURST OF REFINANCING AND ACCELERATE PREPAYMENTS INVESTORS WHOSE SECURITIES PREPAY FACE THE PROSPECT OF PUTTING THE MONEY BACK TO WORK IN A LOWERRATE ENVIRONMENT AND IN SOME CASES LOSING SOME PRINCIPAL THERE HAS BEEN SELLING OF A LOT OF COLLATERAL DURING THE PAST FEW SESSIONS INCLUDING FANNIE MAE 15YEAR 6 1/2 MORTGAGE SECURITIES MR WASILEWSKI SAID THERE HAVE BEEN SALES ONCE OR TWICE A DAY OF 150 MILLION TO 200 MILLION BLOCKS OF MORTGAGE SECURITIES FROM INVESTOR PORTFOLIOS HE SAID MAYBE A THIRD OF THAT SELLING IS PEOPLE MOVING DOWN IN COUPON AND PART OF THE SELLING IS PEOPLE MOVING OUT OF THE MORTGAGEBACKED SECTOR BECAUSE THEY'RE A LITTLE TENTATIVE ABOUT PREPAYMENTS HE ADDED 9304160001 930415 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 9304160177 930316 CHRISTIANITY VS FANATICISM BY RALPH REED MICHAEL GRIFFIN WAS A TICKING TIME BOMB WAITING TO EXPLODE BELEAGUERED BY MARITAL PROBLEMS HE ERUPTED INTO FITS OF VIOLENCE WITHOUT WARNING AFTER REPEATED BEATINGS HIS WIFE SOUGHT A COURT INJUNCTION CITING INCIDENTS OF PHYSICAL ABUSE THAT LEFT BRUISES HIS CHURCH REMOVED HIM FROM MEMBERSHIP AFTER HE REJECTED COUNSELING LAST WEEK THE ANGER RAGING INSIDE MR GRIFFIN BOILED OVER IN A PARKING LOT OUTSIDE AN ABORTION CLINIC IN PENSACOLA FLA WHERE HE HAS BEEN CHARGED WITH THE MURDER OF DR DAVID GUNN AN ITINERANT ABORTIONIST THIS MURDER HAS RAISED ANEW THE NATIONAL DEBATE OVER ABORTION IT ALSO HAS RAISED QUESTIONS ABOUT THE ROLE OF RELIGION IN CIVIC DISCOURSE IN AMERICA MR GRIFFIN'S ABERRANT VIOLENCE IS NO MORE REPRESENTATIVE OF THE PROLIFE MOVEMENT THAN THE TERRORISM PRACTICED BY THE BLACK PANTHERS EXEMPLIFIED THE CIVIL RIGHTS STRUGGLE OF THE 1960S MARTIN LUTHER KING JR PREACHED NONVIOLENCE THE FACT THAT A FEW LED BY HUEY P NEWTON AND ELDRIDGE CLEAVER CARRIED THEIR RAGE TO VIOLENT EXCESS DID NOT SIGNAL THE MORAL BANKRUPTCY OF THE CRUSADE FOR A COLORBLIND SOCIETY MAINSTREAM PROLIFE ORGANIZATIONS RECOILED IN HORROR AT THE MURDER IN PENSACOLA THE VIOLENCE OF KILLING IN THE NAME OF PROLIFE MAKES A MOCKERY OF THE PROLIFE CAUSE PROCLAIMED THE US CATHOLIC BISHOPS CONFERENCE THE BISHOPS ARE RIGHT MURDER COMMITTED IN THE NAME OF LIFE IS HYPOCRISY PURE AND SIMPLE YET THE STATEMENT OF THE CATHOLIC CHURCH WENT LARGELY IGNORED AFTER ALL WHY APPEAL TO RELIGIOUS AUTHORITY WHEN DR JOYCE BROTHERS OR CARL SAGAN WILL DO INDEED THE TRAGEDY IN PENSACOLA REVEALS THE VACUUM IN AMERICAN INTELLECTUAL DISCOURSE CREATED BY THE GROWING CONTEMPT FOR RELIGION A DARK THREAD RUNS THROUGH THE CONVENTIONAL EXPLANATION FOR MICHAEL GRIFFIN'S BEHAVIOR HE WAS A DEVOUT CHRISTIAN HIS PATHOLOGY HAS BEEN CAST IN LARGELY RELIGIOUS TERMS ANTHONY LEWIS OF THE NEW YORK TIMES OPINED HYSTERICALLY THAT THE MURDER IN PENSACOLA SHOWED THAT RELIGIOUS FANATICS WANT TO IMPOSE GOD'S WORD ON THE REST OF US ONE NEWS ACCOUNT RELATED THAT MR GRIFFIN EDUCATED HIS CHILDREN AT HOME A PRACTICE LARGELY ASSOCIATED WITH CHRISTIAN FUNDAMENTALIST BELIEFS WHY ARE LAWABIDING CHURCHGOING CITIZENS ASSOCIATED WITH THE ISOLATED VIOLENCE OF AN OBVIOUS SOCIOPATH PART OF THE ANSWER LIES IN THE CHURCH'S ABDICATION OF ITS RESPONSIBILITY TO THE BROADER CULTURE AFTER THE SCOPES TRIAL OF 1925 PEOPLE OF FAITH WITHDREW TO THEIR CHURCHES CREATING A CULTURAL GHETTO OF THEIR OWN MAKING THEIR RECENT REENTRY INTO CIVIC LIFE AFTER DECADES OF NEGLECT HAS BEEN GREETED WITH FEAR IN SEEKING TO REDRESS THEIR CULTURAL ISOLATION PEOPLE OF FAITH MUST RESIST THE TEMPTATION TO PROMOTE POLITICAL INVOLVEMENT AS THE SOLE ANSWER TO OUR SOCIAL ILLS THE CHURCH THAT SAVES SOULS AND RESTORES MARRIAGES GAINS A PLATFORM FROM WHICH IT CAN SPEAK TO THE BROADER SOCIETY THE HAND THAT FEEDS CLOTHES AND EDUCATES IS STRONG ENOUGH TO BANG THE GAVEL IN THE COURTHOUSE AND STATEHOUSE A CARING FAITH COMMUNITY WILL NOT MERELY CONDEMN THE ABORTIONIST BUT OFFER LOVING ALTERNATIVES TO PREGNANT WOMEN SUCH AS HOMES FOR UNWED MOTHERS AND ADOPTION SERVICES A SECOND PROBLEM IS THE GROWING ALIENATION OF CULTURAL ELITES FROM MIDDLE AMERICA PARTICULARY IN MATTERS OF RELIGION ACCORDING TO A SURVEY BY STANLEY ROTHMAN AND ROBERT LICHTER 86 OF US MEDIA LEADERS ATTEND CHURCH INFREQUENTLY OR NOT AT ALL BY CONTRAST A SURVEY CONDUCTED LAST MONTH BY THE MARKETING RESEARCH INSTITUTE FOUND THAT 48 OF AMERICANS ATTEND CHURCH TWICE OR MORE A MONTH MORE THAN 100 MILLION AMERICANS ATTEND CHURCH EVERY MONTH AND APPROXIMATELY 30 MILLION ATTEND CHURCH FOUR TIMES A MONTH OR MORE YET FEW OF OUR NATION'S JOURNALISTS PROFESSORS AND INTELLECTUALS CAN BE FOUND IN THE PEWS ON ANY GIVEN SUNDAY AS JEFFREY BELL OBSERVES IN POPULISM AND ELITISM POLITICS IN THE AGE OF EQUALITY THIS CULTURAL ESTRANGEMENT HAS CREATED A VALUES CRISIS OF UNPRECEDENTED MAGNITUDE THAT IS REFLECTED IN OUR POLITICS AS ELITES HAVE BECOME INCREASINGLY ISOLATED FROM THE PEOPLE AND VICE VERSA OUR POLITICS HAVE BECOME DOWNRIGHT NASTY EVEN DYSFUNCTIONAL CHRISTIANS IN THE PUBLIC SPHERE ARE FANATICS THEIR PARTICIPATION IN THE CIVIC PROCESS A THREAT TO THE SEPARATION OF CHURCH AND STATE COLUMNIST MOLLY IVINS EVEN LABELED POLITICALLY ACTIVE EVANGELICALS SHIITE BAPTISTS A BIZARRE EQUATION THAT SUGGESTS A CONNECTION BETWEEN EVANGELICAL PROTESTANTISM AND POLITICAL EXTREMISM POPULAR DISDAIN FOR RELIGION HAS DEBASED OUR CIVIC DISCOURSE UNTIL IT IS VULGAR VITRIOLIC AND VIOLENT WE NO LONGER COMMUNICATE BECAUSE WE NO LONGER SHARE A COMMON VERNACULAR RELIGIONISTS AND SECULARISTS SNIPE AT ONE ANOTHER ACROSS RHETORICAL BARRICADES IT WAS NOT ALWAYS SO UNIQUE AMONG ALL NATIONS IN HISTORY AMERICA WAS SETTLED BY PEOPLE OF FAITH OUR EDUCATIONAL SYSTEM WAS LARGELY FOUNDED BY CLERGY JONATHAN EDWARDS ONE OF THE FIRST PRESIDENTS OF PRINCETON STIRRED CONGREGATIONS WITH SERMONS THAT WARNED OF SINNERS IN THE HANDS OF AN ANGRY GOD SCHOOLCHILDREN IN EARLY AMERICA READ MCGUFFEY READERS BY CANDLELIGHT MEMORIZING SCRIPTURE VERSES AND CHURCH HYMNS WHEN NOAH WEBSTER PUBLISHED THE FIRST AMERICAN DICTIONARY IN 1828 HE USED BIBLE VERSES AS DEFINITIONS WEBSTER FOUNDED A COLLEGE SERVED IN GOVERNMENT AND MASTERED 28 LANGUAGES THERE WAS NO FALSE DICHOTOMY BETWEEN PERSONAL FAITH AND PUBLIC SERVICE IN HIS DAY WELL INTO THE 20TH CENTURY TWO BODIES OF LITERATURE INFORMED OUR CIVIC DISCOURSE THE CLASSICS AND THE BIBLE THEODORE ROOSEVELT WHO OFTEN READ THREE BOOKS A DAY CLAIMED A THOROUGH KNOWLEDGE OF THE BIBLE IS MORE IMPORTANT THAN A COLLEGE EDUCATION ROOSEVELT UNDERSTOOD THIS FROM PERSONAL EXPERIENCE HAVING GRADUATED FROM HARVARD WHEN ABRAHAM LINCOLN SAID IN THE 1850S THAT A HOUSE DIVIDED AGAINST ITSELF CANNOT STAND HE WAS QUOTING THE BOOK OF MATTHEW HIS LISTENERS NEEDED NO TRANSLATOR SHARED LANGUAGE AND SYMBOLISM MUTED DISAGREEMENTS AND SUSTAINED NATIONAL UNITY EVEN WHEN POLITICAL DISPUTES THREATENED TO DESTROY IT WE HAVE LOST THIS COMMON LANGUAGE AND WITH IT OUR SENSE OF COMMON VALUES AS RELIGION HAS BEEN PUSHED TO THE PERIPHERY OF INTELLECTUAL LIFE THE MEDIA'S EXPLANATION FOR THE CONTINUED VITALITY OF RELIGION ASSUMES AN APOCALYPTIC FLAVOR OUR MORBID FASCINATION WITH THE TRAGEDIES IN WACO TEXAS AND PENSACOLA IS INSTRUCTIVE RELIGION IN THE POPULAR MIND HAS BECOME VIRTUALLY SYNONYMOUS WITH FANATICISM PREACHERS ARE DRAWN AS ELMER GANTRYLIKE CARICATURES AND THEIR FOLLOWERS ARE IN THE WORDS OF THE WASHINGTON POST POOR UNEDUCATED AND EASY TO COMMAND WHEN RELIGION DOES FIND ITS WAY INTO THE NATIONAL DEBATE IT IS INVARIABLY IN THE CONTEXT OF BOMBINGS TERROR MURDER AND CULTIC VIOLENCE ONE SEARCHES IN VAIN FOR A POSITIVE PORTRAYAL OF FAITH IN POPULAR CULTURE WHEN MARTIN SCORCESE REMADE THE 1962 FILM CAPE FEAR A COUPLE OF YEARS AGO HE TRANSFORMED THE CHARACTER PLAYED BY ROBERT DE NIRO INTO A PENTECOSTAL PSYCHOPATH WHO SNEERS AT A WOMAN JUST BEFORE RAPING HER ARE YOU READY TO BE BORN AGAIN GONE IS OUR UNDERSTANDING OF RELIGION'S VIBRANT ROLE IN SUSTAINING MARRIAGES NURTURING CHILDREN AND STRENGTHENING FAMILIES GONE IS OUR APPRECIATION FOR RELIGION AS THE BASIS FOR INDIVIDUAL SELFINITIATIVE SOCIAL QUIETUDE AND VOLUNTARY CIVIL OBEDIENCE THE HOLLYWOOD SET ARGUES THAT THE EXCLUSION OF FAITH FROM THE PUBLIC ARENA IS TANTAMOUNT TO PATRIOTISM BUT EVEN THEY CANNOT DENY THAT SKYROCKETING CRIME DRUGS ILLEGITIMACY DIVORCE TEEN PREGNANCY AND ILLITERACY PARALLEL THE DECLINE IN THE PUBLIC AFFIRMATION OF RELIGIOUS FAITH IN POPULAR CULTURE TOCQUEVILLE MARVELED AT A NATION OF CHURCHGOERS WHOSE POLITICAL DIFFERENCES WERE TEMPERED BY SHARED VALUES AND A COMMON LANGUAGE TO EXPRESS THEM UNTIL OUR CULTURE BEGINS TO HONOR AND AFFIRM RELIGION CIVILITY MAY NEVER RETURN TO AMERICAN CIVIC DISCOURSE EVEN MORE TRAGICALLY A GUNMAN IN PENSACOLA AND A LUNATIC IN WACO WILL REMAIN EXEMPLARS OF RELIGION INSTEAD OF THE PATHETIC ABERRATIONS THEY ARE MR REED IS EXECUTIVE DIRECTOR OF THE CHRISTIAN COALITION SEE RELATED LETTERS LETTERS TO THE EDITOR A DISDAIN FOR POLITICAL THEOLOGY APRIL 15 1993 9303160121 9304150167 930415 WHO'S NEWS STUDENT LOAN CORP STUDENT LOAN CORP PITTSFORD NY CHRISTOPHER F EDLEY 65 YEARS OLD AND EVELYN E HANDLER 62 WERE ELECTED EACH TO TWOYEAR TERMS ON THE BOARD INCREASING ITS SIZE TO SEVEN MR EDLEY IS PRESIDENT EMERITUS OF UNITED NEGRO COLLEGE FUND INC AND DR HANDLER IS AN ASSOCIATE IN EDUCATION A NONTEACHING POSITION AT THE GRADUATE SCHOOL OF EDUCATION AT HARVARD UNIVERSITY STUDENT LOAN CORP IS AN ORIGINATOR OF GUARANTEED STUDENT LOANS AND IS MAJORITY OWNED BY CITICORP 9304150166 930415 US AGENCY URGES EARLY DIAGNOSIS OF DEPRESSION BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A US AGENCY URGED DOCTORS TO BE MORE AGGRESSIVE IN DIAGNOSING AND TREATING MAJOR DEPRESSION AND RECOMMENDED THE USE OF ANTIDEPRESSANT MEDICINES IN MANY CASES IF YOU CATCH DEPRESSION EARLY IT IS PRETTY TREATABLE SAID A JOHN RUSH DIRECTOR OF MENTAL HEALTH RESEARCH AT UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER DALLAS IF YOU CATCH IT LATE IT CAN KILL YOU BEFORE YOU GET TO THE DOCTOR DR RUSH HEADED A PANEL OF HEALTH EXPERTS THAT DEVELOPED A DETAILED SET OF TREATMENT GUIDELINES INTENDED FOR FAMILY PHYSICIANS AND OTHER PRIMARYCARE PRACTITIONERS THE GUIDELINES WERE ISSUED YESTERDAY IN WASHINGTON BY THE AGENCY FOR HEALTH CARE POLICY AND RESEARCH AS PART OF A BROAD EFFORT TO INFORM DOCTORS AND PATIENTS AND IMPROVE CARE THE ILLNESS AFFECTS ABOUT 12 MILLION AMERICANS A YEAR THE GUIDELINES WHICH DR RUSH DESCRIBED AS A ROADMAP SAY DEPRESSION CAN ALMOST ALWAYS BE TREATED SUCCESSFULLY WITH MEDICATION PSYCHOTHERAPY OR A COMBINATION OF BOTH DEPENDING ON SYMPTOMS AND OTHER FACTORS THEY COULD HAVE AN IMPORTANT IMPACT ON TREATMENT IN PART BY ENCOURAGING PRIMARYCARE DOCTORS WHO OFTEN FAIL TO DETECT DEPRESSION TO BE MORE ALERT TO SYMPTOMS THEY ALSO BOLSTER THE LONGSTANDING ARGUMENT OF MENTAL HEALTH PROVIDERS AND ADVOCATES THAT TREATMENT FOR MENTAL ILLNESS SHOULD BE COVERED BY INSURERS AT THE SAME LEVELS AS MEDICAL PROBLEMS LIKE HEART DISEASE AND ARTHRITIS INSURERS TYPICALLY PAY 50 CENTS ON THE DOLLAR FOR MENTAL HEALTH AND 80 CENTS FOR OTHER DISEASES ULTIMATELY WE CAN GET MOST OF THESE PEOPLE BACK ON THEIR FEET COMPLETELY SAID DR RUSH WHEN WE KNOW CERTAIN TREATMENTS WORK THAT'S A GOOD BASIS FOR COVERING THEM BUT THE GUIDELINES WHILE SUPPORTED BY SEVERAL MEDICAL GROUPS DREW FIRE FROM THE AMERICAN PSYCHOLOGICAL ASSOCIATION WHICH CHARGED THAT THEY FAVOR THE USE OF DRUGS OVER PSYCHOTHERAPY AND THAT THEY DON'T RELY ADEQUATELY ON MENTAL HEALTH SPECIALISTS IF THERE IS ENCOURAGEMENT FOR RELATIVELY EXTENSIVE TREATMENT BY PRIMARYCARE DOCTORS AS OPPOSED TO MENTAL HEALTH SPECIALISTS THE TREATMENT GENERALLY WILL BE MEDICATION ARGUED RUSS NEWMAN ACTING EXECUTIVE DIRECTOR FOR PROFESSIONAL PRACTICE FOR THE PSYCHOLOGISTS' GROUP PSYCHOLOGISTS GENERALLY AREN'T PERMITTED TO PRESCRIBE DRUGS INSTEAD THEY USE PSYCHOTHERAPY TO TREAT PATIENTS ANYONE WHO PICKS UP THE GUIDELINES WILL SEE THAT COUNSELING AND PSYCHOTHERAPY ARE ADVOCATED FOR TREATMENT FOR SOME FORMS OF DEPRESSION COUNTERED COL MOSES HERRERA CHIEF OF THE PRIMARYCARE CLINIC AT ROBINS AIR FORCE BASE HOSPITAL GEORGIA AND A MEMBER OF THE PANEL HE ALSO SAID THE GUIDELINES GIVE CLEAR ADVICE ON WHEN REFERRALS TO SPECIALISTS ARE INDICATED THE GUIDELINES WEREN'T WRITTEN TO BENEFIT PHYSICIANS OR ANY OTHER PROFESSIONAL GROUP HE SAID THEY WERE WRITTEN TO BENEFIT PATIENTS BY CONTRAST THE AMERICAN PSYCHIATRIC ASSOCIATION SAID THE NEW GUIDELINES DOVETAIL WITH PARAMETERS THE ASSOCIATION JUST PUBLISHED FOR PSYCHIATRISTS ABOUT THE TREATMENT OF SEVERE DEPRESSION THESE GUIDELINES WILL ENABLE MORE PATIENTS TO HAVE DIAGNOSIS AND TREATMENT OF DEPRESSION AVAILABLE TO THEM SAID SARA C CHARLES VICE CHAIRMAN OF THE ASSOCIATION'S PRACTICE GUIDELINES COMMITTEE AND A PSYCHIATRIST AT THE UNIVERSITY OF ILLINOIS IN CHICAGO MAJOR DEPRESSION CHARACTERIZED BY SUCH SYMPTOMS AS PROLONGED EPISODES OF DEPRESSED MOODS PROBLEMS CONCENTRATING OR MAKING DECISIONS DISRUPTION OF SLEEP ROUTINES AND HEADACHES AFFECTS ABOUT ONE IN EIGHT AMERICANS IN THEIR LIFETIMES IT LEADS TO ABOUT 16000 SUICIDES A YEAR IN 1989 THE ILLNESS COST AN ESTIMATED 27 BILLION FOR TREATMENT AND LOST WORK TIME THE AGENCY FOR HEALTH CARE POLICY AND RESEARCH SAID AT THE SAME TIME THE AGENCY SAID ONLY ABOUT ONE IN THREE PATIENTS WHO VISIT A PRIMARYCARE DOCTOR WITH SYMPTOMS OF DEPRESSION IS ACCURATELY DIAGNOSED AND TREATED APPROPRIATELY EXPERTS SAY PROBLEMS DETECTING THE ILLNESS REFLECT AMONG OTHER THINGS THE FAILURE OF PHYSICIANS TO ADEQUATELY DISCUSS SYMPTOMS WITH PATIENTS AND PATIENTS' FEAR THAT MENTAL ILLNESS CARRIES A SOCIAL STIGMA THE GUIDELINES ARE BASED ON A REVIEW OF ABOUT 3500 SCIENTIFIC PAPERS INCLUDING MORE THAN 400 RANDOMIZED CLINICAL TRIALS INVOLVING DRUGS AND MORE THAN 40 SIMILAR TRIALS INVOLVING SHORTTERM PSYCHOTHERAPY THE PANEL OF EXPERTS SAID MEDICATION IS RECOMMENDED FOR MORE SEVERE DEPRESSION AND IS LIKELY TO BE SUCCESSFUL IN 50 TO 60 OF PATIENTS ON THE FIRST TREATMENT A 10TO12WEEK COURSE OF PSYCHOTHERAPY APPEARS TO WORK BEST IN LESS SERIOUS CASES A COMBINATION OF TREATMENTS CAN BE USED WHEN PATIENTS DON'T RESPOND FULLY TO EITHER ONE IN ANY CASE PATIENTS SHOULD SHOW A MARKED BENEFIT WITHIN SIX WEEKS OF ANY COURSE OF THERAPY DR RUSH SAID IF YOU GO OUT SIX WEEKS ON A DRUG AND NOTHING IS HAPPENING YOU'RE EITHER ON THE WRONG DOSE THE WRONG DRUG OR MAYBE YOU DON'T NEED A DRUG HE SAID NO SINGLE TREATMENT IS GOING TO WORK FOR EVERYBODY ON A FIRST PASS JUST AS IMPORTANT AS GETTING BETTER IS STAYING BETTER HE ADDED THAT MEANS TREATMENT RANGING FROM FOUR MONTHS TO SEVERAL YEARS MAY BE REQUIRED FOR MANY PATIENTS TO PREVENT RECURRENT EPISODES OF DEPRESSION BEYOND DOCTORS AND PATIENTS THE NEW GUIDELINES HAVE IMPLICATIONS FOR REVAMPING THE US HEALTHCARE SYSTEM THE CLINTON ADMINISTRATION IS EXPECTED TO PROPOSE INCREASED RELIANCE ON PRIMARYCARE PHYSICIANS AND PREPAID HEALTH MAINTENANCE ORGANIZATIONS A RECENT STUDY BY KENNETH WELLS A PSYCHIATRIST AT UNIVERSITY OF CALIFORNIA AT LOS ANGELES AND RAND CORP THE SANTA MONICA CALIF THINK TANK FOUND HMOS WHERE PRIMARY CARE DOCTORS ARE RESPONSIBLE FOR REFERRING PATIENTS TO MENTAL HEALTH SPECIALISTS HAD SIGNIFICANTLY LOWER DETECTION RATES OF DEPRESSION THAN TRADITIONAL FEEFORSERVICE PRACTICES 9304150165 930415 PSC BOARD CLEARS SHARE BUYBACK WEBSTER NY PSC INC SAID ITS DIRECTORS APPROVED A PROGRAM TO REPURCHASE AS MANY AS 500000 OF ITS COMMON SHARES OR ABOUT 7 OF ITS TOTAL SHARES OUTSTANDING L MICHAEL HONE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE MAKER OF BARCODE SCANNING EQUIPMENT SAID THAT THE PURCHASES WOULD BE A PRUDENT AND WISE INVESTMENT BUT THAT THE ACTUAL NUMBER OF SHARES BOUGHT WOULD DEPEND ON MARKET CONDITIONS AND OTHER FACTORS PSC'S SHARES WERE QUOTED AT 7625 UP 1125 IN OVERTHECOUNTER TRADING 9304150164 930415 US HEALTHCARE STOCK BUYBACK BLUE BELL PA US HEALTHCARE INC DIRECTORS APPROVED THE REPURCHASE OF AS MANY AS FIVE MILLION SHARES OF ITS COMMON STOCK THE HMO AND MANAGED HEALTH CARE COMPANY AT FEB 26 HAD 971 MILLION COMMON SHARES OUTSTANDING 9304150163 930415 FIRST FIDELITY AGREES TO ACQUIRE PEOPLES WESTCHESTER BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL LAWRENCEVILLE NJ FIRST FIDELITY BANCORP AGREED TO ACQUIRE PEOPLES WESTCHESTER SAVINGS BANK OF NEW YORK FOR ABOUT 233 MILLION IN CASH AND STOCK THE MOVE WOULD FURTHER EXPAND FIRST FIDELITY'S REGIONAL BANKING PRESENCE IN THE AFFLUENT SUBURBS AROUND NEW YORK CITY IT CURRENTLY IS THE LEADER IN THE NORTHERN NEW JERSEY BANKING MARKET AND WITH THE PEOPLES WESTCHESTER BRANCHES IT WILL HAVE THE SECONDLARGEST MARKET SHARE IN WESTCHESTER COUNTY NY WITH ABOUT 12 OF DEPOSITS AND 25 BILLION IN ASSETS FIRST FIDELITY ALSO HAS AN ACQUISITION PENDING OF CONNECTICUT'S NORTHEAST BANCORP WHICH IT SAID WOULD GIVE IT THE SECONDLARGEST MARKET SHARE IN AFFLUENT FAIRFIELD COUNTY TOO THE ACQUISITION VALUES PEOPLES WESTCHESTER AT ABOUT ITS CURRENT MARKET VALUE AND 14 TIMES BOOK VALUE FIRST FIDELITY SAID INVESTORS APPARENTLY DIDN'T LIKE THAT PERHAPS EXPECTING A PREMIUM THE THRIFT'S SHARES CLOSED AT 41 DOWN 225 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY FIRST FIDELITY SHARES CLOSED DOWN NEARLY 63 CENTS TO 50125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BUT SOME ANALYSTS SAID THE OFFER WAS FAIR IT'S A REASONABLE PRICE AND 14 TIMES BOOK VALUE IS GOOD SAID NANCY BUSH AT BROWN BROS HARRIMAN CO SOME INVESTORS HAVE BEEN BIDDING UP SOME BANKING STOCKS WITH TOO MUCH EXPECTATION ABOUT TAKEOVER VALUE SAID SANDRA FLANIGAN AT MERRILL LYNCH & CO PEOPLES WESTCHESTER SAID THE AGREEMENT CULMINATES A PROCESS BEGUN IN JANUARY WHEN ITS BOARD DECIDED TO EXPLORE ALTERNATIVES TO MAXIMIZE SHAREHOLDER VALUE PEOPLES WESTCHESTER HAS GOOD CAPITAL LEVELS EXCEEDING REGULATORY MINIMUM REQUIREMENTS UNDER THE TERMS OF THE DEFINITIVE AGREEMENT EACH PEOPLES WESTCHESTER SHARE WILL BE CONVERTED TO EITHER 4390 CASH OR 08693 SHARE OF FIRST FIDELITY ALSO VALUED AT 4390 BASED ON MONDAY'S CLOSING PRICE OF 5050 FOR FIRST FIDELITY SHARES THE EXCHANGE IS SUBJECT TO 501 OF PEOPLES WESTCHESTER SHARES BEING TENDERED FOR FIRST FIDELITY STOCK AND 499 IN CASH THE COMPANIES SAID IN A JOINT STATEMENT THE COMPANIES SAID THAT IF FIRST FIDELITY'S AVERAGE STOCK PRICE OVER A 10DAY PERIOD PRIOR TO CLOSING THE TRANSACTION EXCEEDS 5050 THE STOCKSWAP EXCHANGE RATIO AND THE CASH VALUE WILL BE REVISED TO MAINTAIN THE 501/499 BALANCE OF STOCK AND CASH TO HELP FINANCE THE TRANSACTION FIRST FIDELITY WILL ISSUE ANOTHER 15 MILLION SHARES TO ITS LARGEST SHAREHOLDER SPAIN'S BANCO SANTANDER AFTER THE TRANSACTION BANCO SANTANDER WILL HOLD 211 OF FIRST FIDELITY THE SPOKESMAN SAID THE FIRST FIDELITY SPOKESMAN SAID THE TRANSACTION WAS STRUCTURED AS HALF CASH HALF STOCK BECAUSE THAT MIX WAS THE MOST EFFICIENT FOR OUR CAPITAL USE AND DILUTION EFFECT HE ALSO SAID THE 501 STOCK SWAP PORTION ENSURES THE TRANSACTION WILL BE TREATED AS TAXFREE THE TRANSACTION IS EXPECTED TO CLOSE IN THE FOURTH QUARTER 9304150162 930415 INTERNATIONAL EC COMMISSION OBJECTS TO PACT BY 14 SHIPPERS BRUSSELS THE EUROPEAN COMMUNITY COMMISSION OPENED COMPETITION INFRINGEMENT PROCEEDINGS AGAINST AN AGREEMENT AMONG 14 SHIPPING COMPANIES THAT SEEKS TO SHARPLY INCREASE RATES FOR WESTBOUND TRANSATLANTIC CARGO THE COMMISSION SENT A STATEMENT OF OBJECTIONS TO THE COMPANIES COMPRISING THE TRANSATLANTIC AGREEMENT PEOPLE FAMILIAR WITH THE COMMISSION SAID SUCH A STEP COULD LEAD TO INJUNCTIONS AND OTHER MEASURES UNDER THE EC'S ANTITRUST AUTHORITY IN OPENING THE PROCEDURE THE COMMISSION CONTINUED ITS TOUGH ENFORCEMENT OF EC COMPETITION RULES IN THE MARITIME SECTOR IN TWO CASES LAST YEAR THE EC FINED SHIPPING COMPANIES A TOTAL OF 25 MILLION EUROPEAN CURRENCY UNITS 308 MILLION FOR OPERATING CARTELS ON SHIPMENTS FROM EUROPE TO AFRICA THE TRANSATLANTIC PACT WAS FORMED LAST YEAR IN RESPONSE TO WHAT THE 14 SHIPPERS WHO CONTROL 80 OF THE 3 BILLION ANNUAL CARGO TRADE BETWEEN THE US AND EUROPE SAID WERE STAGGERING LOSSES DUE TO OVERCAPACITY THE AGREEMENT CALLS FOR WITHHOLDING ABOUT 20 OF THE CARGO CAPACITY ON CONTAINER SHIPS SAILING WESTBOUND FROM EUROPE TO BOOST PRICES ON THOSE ROUTES THE CARGO TRADE FROM THE US TO EUROPE HAS BEEN OPERATING AT MUCH HIGHER CAPACITY BECAUSE OF HEALTHY US EXPORTS SO THE SHIPPING PACT HASN'T TRIED TO REDUCE CAPACITY IN THAT DIRECTION THE AGREEMENT WON US REGULATORY APPROVAL LAST YEAR 9304150161 930415 LEISURE & ARTS ON DISK REMASTERING MAGIC A MILES DAVIS CLASSIC REBORN BY ROXANE ORGILL ON MARCH 2 1959 MILES DAVIS ARRIVED AT COLUMBIA RECORDS' 30TH STREET STUDIOS IN MANHATTAN HAVING SKETCHED THE DAY'S COMPOSITIONS ONLY HOURS BEFORE HIS SEXTET RECORDED THREE NUMBERS THAT DAY AND TWO MORE ON APRIL 6 IN EVERY CASE THE FIRST COMPLETE PERFORMANCE WAS USED ON THE ALBUM THE SESSIONS WERE A MINOR MIRACLE OF SPONTANEITY EVEN IN JAZZ TERMS ESPECIALLY WHEN ONE CONSIDERS HOW SURPRISING THE MUSIC WAS INSTEAD OF BUILDING HIS TUNES ON MAJOR AND MINOR CHORDS DAVIS ORGANIZED THE MUSIC AROUND ANCIENT GREEK SCALES CALLED MODES KIND OF BLUE TURNED INTO A CLASSIC STUDIED BY EVERY JAZZ PLAYER AND TREASURED BY EVERY JAZZ ENTHUSIAST SINCE WHAT A DISAPPOINTMENT THEN WHEN THE LP WAS REMASTERED AS A CD IN 1987 BY SONY WHICH BY NOW OWNED COLUMBIA RECORDS AND THE RESULT WAS COLD DULL AND DISTANT A MERE SHADOW OF THE ORIGINAL LAST FALL MARK WILDER REMIXED AND REMASTERED THE ALBUM AT SONY MUSIC'S NEW YORK STUDIOS USING A REVOLUTIONARY NEW PROCESS AND SONY ATTACHED AN EQUALLY RADICAL PRICE TAG OF 30 IT'S PART OF A SERIES ON THE LEGACY LABEL CALLED MASTERSOUND CDS OTHERS INCLUDE DAVE BRUBECK'S TIME OUT BILLY JOEL'S 52ND STREET JANICE JOPLIN'S PEARL AND THE ORIGINAL WEST SIDE STORY THE WORD IS THAT THESE HIGHEND DISKS ARE FOR AUDIOPHILES ONLY AND THAT LISTENERS WITH LESS THAN 25000 OF EQUIPMENT NEED NOT BOTHER WELL THE WORD IS WRONG A GOOD BASIC SYSTEM AND A KEEN PAIR OF EARS ARE ALL THAT'S NEEDED TO HEAR THE DIFFERENCE KIND OF BLUE IS REBORN ON MASTERSOUND IN MORE WAYS THAN ONE FOR STARTERS SONY HAS DISPELLED A DARK CLOUD OF ERROR THAT HUNG OVER THE ALBUM FROM THE START THE ORIGINAL JACKET TEXT REVERSED THE TITLES ALL BLUES AND FLAMENCO SKETCHES AND CONTINUED THE BLUNDER IN BILL EVANS'S LINER NOTES LEADING TO MUCH CONFUSION PRODUCERS OF THE FIRST CD GOT THE TITLES RIGHT BUT MISSED THE ERROR IN THE LINER NOTES THE NEW CD REPRINTS EVANS'S NOTES VERBATIM BUT WITH A CLARIFYING NOTE BY THE REISSUE PRODUCER AMY HEROT MORE IMPORTANTLY SONY HAS SOLVED THE PITCH MYSTERY TRUMPET PLAYERS WHO TRIED TO LEARN THE TUNES OFF THE ALBUM FOUND THAT THE NOTES ON SIDE ONE WEREN'T PLAYABLE ON THEIR INSTRUMENT NOW WE KNOW WHY THE MUSIC ON SIDE ONE WAS A QUARTER TONE HIGHER THAN THE MUSIC ON SIDE TWO TWO TAPE RECORDERS WERE RUNNING AT THE 1959 SESSIONS A MASTER AND A BACKUP OR SAFETY AT THE FIRST SESSION THE MASTER MACHINE RAN SLOW AND WHEN THE TAPE WAS MIXED AT THE RIGHT SPEED THE PITCH CLIMBED A QUARTER TONE INCREDIBLY THE MISTAKE GOT BY EVERYONE EVEN DAVIS IT CONTINUED IN THE FIRST CD BECAUSE THE ENGINEERS COULD NOT FIND THE ORIGINAL TAPES SONY'S ARCHIVES INCLUDING ALL COLUMBIA RECORDS TAPES HAVE SINCE BEEN CATALOGUED BY COMPUTER AND FOR THE NEW CD ENGINEERS COULD RETRIEVE BOTH MASTER AND SAFETY TAPES THEY USED THE SAFETY WHICH HAD RUN AT THE CORRECT SPEED TO MAKE THE NEW DISK THE NEW PROCESS USED BY SONY IN MAKING THE MASTERSOUND DISK IS CALLED SUPER BIT MAPPING AND IT IS THE LATEST ANSWER TO THE VEXING PROBLEM OF CD REMASTERING TO MAKE A COMPACT DISK THE ENGINEER MUST CONVERT CONVENTIONAL ANALOG TAPE TO A 20BIT DIGITAL RECORDING A BIT IS THE BASIC UNIT OF ELECTRONIC INFORMATION CD PLAYERS HOWEVER CAN ONLY READ 16 OF THE 20 BITS THE SOLUTION HAS BEEN TO LOP OFF THE LAST FOUR BITS A PROCESS CALLED TRUNCATION LESS COMMONLY ENGINEERS TRUNCATE AND THEN ADD A LITTLE NOISE TO COVER THE LOSS SOMETHING CALLED DITHERING THE LOST BITS NOS 1720 WHICH ENGINEERS CALL THE LEAST SIGNIFICANT BITS CONTAIN NO ACTUAL MUSIC BUT THEY DO CONVEY SUCH QUALITIES AS AMBIANCE AND REVERBERATION DECAY THIS IS WHY LISTENERS COMPLAIN THAT CDS SOUND UNNATURAL HARDEDGED OR HARSH ONE WAY TO SOLVE THIS PROBLEM WOULD BE TO BUILD A CD PLAYER WITH 20BIT RESOLUTION BUT THAT'S SEVERAL YEARS DOWN THE ROAD UNTIL THEN THERE IS SUPER BIT MAPPING THIS DODGE KEEPS ALL 20 BITS BUT HIDES THE LAST FOUR IN THE 16TH USING COMPLEX SIGNAL PROCESSING TO PROVIDE THE EXTRA INFORMATION THE BYPRODUCT NOISE IS THEN PUSHED OUT OF SENSITIVE HEARING RANGE SOUND LIKE MUMBO JUMBO THE PROOF IS IN THE HEARING THE BIG DIFFERENCE IS IN SOUND QUALITY IT'S WARMER CLEARER AND ROOMIER THERE IS A PHYSICAL SENSE OF SPACE AROUND THE INSTRUMENTS YOU FEEL YOU CAN PLACE THEM IN A ROOM THE PIANO BACK IN THE CORNER THE DRUMS RIGHT UP CLOSE MAYBE EVEN TOO CLOSE AND THE HORN PLAYERS DAVIS JOHN COLTRANE ON TENOR SAX AND JULIAN ADDERLEY ON ALTO SAX OUT FRONT MORE ASTONISHING IS THE DETAIL YOU CAN HEAR JIMMY COBB'S BRUSHES DRAWING CIRCLES ON THE HEAD OF THE DRUM THE CLICKING OF SAXOPHONE KEYS AS COLTRANE OR ADDERLEY RUN SILENTLY THROUGH A SOLO PAUL CHAMBERS'S FINGERS THUMPING AND SLIDING ON THE BASS FINGERBOARD WHEREAS THE LP AND THE OLD CD PUT THE SPOTLIGHT ON THE SOLOS THE NEW CD EMPHASIZES ENSEMBLE PUT ON EARPHONES AND YOU CAN HEAR HOW EVANS'S PIANO CHORDS GIVE A PUSH TO THE SOLOISTS HOW COBB'S CRISP STICK WORK ON THE CYMBALS ADDS SIZZLE TO DAVIS'S COOL HORN SUPER BIT MAPPING ALSO HELPS TO TAKE SOME OF THE CHILL OFF THAT HORN WHICH IS APPROPRIATE DAVIS HAD LEFT THE MELLOW COOL SCHOOL OF JAZZ BEHIND BY THIS POINT AND WAS HEADING INTO NEW TERRITORY HIS PLAYING ON KIND OF BLUE IS SPARE BUT FERVENT THAT CAN BE HEARD CLEARLY ONCE AGAIN ON THE MASTERSOUND DISK AND SO CAN THE REVOLUTIONARY MOOD IN THE ROOM THAT DAVIS CAUSED BY MAKING HIS PLAYERS EMBARK WITH HIM ON A RADICAL NEW ADVENTURE IN JAZZ FORM DAVIS WASN'T THE FIRST JAZZMAN TO GO MODAL THE PIANIST AND ARRANGER GEORGE RUSSELL HAD WRITTEN A PRACTICAL TREATISE THE LYDIAN CONCEPT OF TONAL ORGANIZATION AND COLTRANE WAS PROBABLY ALREADY EXPLORING THOSE ANCIENT SCALES BUT DAVIS PLUNGED AHEAD AND TURNED THE EXPERIMENT INTO A LANDMARK ALBUM AND A NEW SOUND THAT WOULD HAVE MANY IMITATORS MODES ARE SCALES ORDERLY ARRANGEMENTS OF NOTES WHICH ARE THE FOUNDATION OF ALL MELODY AND HARMONY MOST OF JAZZ AND WESTERN CLASSICAL MUSIC IS BUILT UPON JUST TWO TYPES OF SCALES MAJOR AND MINOR FOR KIND OF BLUE DAVIS TURNED TO MODES HE WAS HARDLY THE FIRST MODERN COMPOSER TO DO SO BEETHOVEN DEBUSSY AND VAUGHAN WILLIAMS USED MODES ON OCCASION THE MODAL SOUND CAN ALSO BE HEARD IN SLAVIC FOLK SONG NEGRO SLAVE TUNES AND TRADITIONAL JAPANESE MUSIC IN SO WHAT THE BESTKNOWN CUT ON KIND OF BLUE DAVIS ASSIGNED HIS PLAYERS ONLY THE NOTES OF THE DORIAN MODE IN D THE PIANO'S WHITE KEYS FROM D TO D AND IN THE BRIDGE THE DORIAN MODE IN EFLAT THE SAME SCALE A HALFSTEP UP IMAGINE WHAT IT WAS LIKE FOR EVANS COLTRANE ADDERLEY CHAMBERS AND COBB TO SHOW UP FOR A RECORDING SESSION AND HAVE TO THROW OUT WHAT THEY HAD BEEN DOING SINCE THEY FIRST TOOK UP THEIR INSTRUMENTS SUDDENLY THEY HAD TO IMPROVISE IN A MODE INSTEAD OF A MAJOR OR MINOR SCALE AND THAT MADE THEM SHIFT THEIR FOCUS FROM HARMONY TO MELODY IN MOST JAZZ BEFORE THIS MOMENT A SOLOING MUSICIAN WOULD IMPROVISE A SHORT MELODY OVER A SUCCESSION OF RAPIDLY CHANGING CHORDS FITTING THE NOTES OF THE MELODY TO THE NOTES OF THE HARMONY DAVIS ASKED HIS MEN TO CONSTRUCT LONG INVOLVED MELODIES WITH VIRTUALLY NO REGARD FOR HARMONY THE HARMONY REDUCED TO ONE OR TWO CHORDS BECAME INSIGNIFICANT THE PLAYERS HAD TO DO ALL THIS WITH NO REHEARSAL DAVIS DISDAINED PREPARATION HE BELIEVED THAT IF A MUSICIAN WERE FORCED TO RESPOND TO A NEW SITUATION HE MIGHT GO FAR BEYOND WHAT HE THOUGHT HE COULD DO WHICH IS OF COURSE WHAT HAPPENED ON KIND OF BLUE THE SONY MASTERSOUND CD MAKES IT POSSIBLE TO IMAGINE THE EXCITEMENT IN THE COLUMBIA STUDIOS ON THOSE TWO SPRING DAYS IN 1959 FOR THE FIRST TIME WE CAN BEGIN TO HEAR WHAT EVANS MEANT WHEN HE WROTE IN THE LINER NOTES YOU WILL HEAR SOMETHING CLOSE TO PURE SPONTANEITY TO ORDER ANY LEGACY MASTERSOUND CD CALL 18003387834 MS ORGILL IS A FREELANCE WRITER IN HOBOKEN NJ 9304150160 930415 WHO'S NEWS CHAPMAN CO CHAPMAN CO BALTIMORE BENJAMIN L HOOKS 68 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF THIS MINORITYCONTROLLED INVESTMENT BANKING FIRM THE NEWLY CREATED POSITION IS EFFECTIVE APRIL 30 UPON HIS RETIREMENT AS EXECUTIVE DIRECTOR AND CHIEF EXECUTIVE OFFICER OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE 9304150159 930415 WHO'S NEWS INDEPENDENT INSURANCE GROUP INC INDEPENDENT INSURANCE GROUP INC JACKSONVILLE FLA WILLIAM G HOWARD 42 YEARS OLD WAS ELECTED A DIRECTOR OF THIS INSURANCE GROUP MR HOWARD VICE PRESIDENT AND DIRECTOR OF THE COMPANY'S OPERATIONS SUPPORT DIVISION SUCCEEDS CATHERINE STANLEY WHO RETIRED 9304150158 930415 NIAGARA MOHAWK TO CUT JOBS SYRACUSE NY NIAGARA MOHAWK POWER CORP SAID IT WILL ELIMINATE 273 JOBS BY THE END OF 1995 AS PART OF A RESTRUCTURING OF OPERATIONS AT ITS FOUR POWERGENERATION STATIONS THE RESTRUCTURING IS EXPECTED TO INCREASE EFFICIENCY AND SAVE AN ESTIMATED 20 MILLION ANNUALLY BY 1995 THE POWER UTILITY SAID THE RESTRUCTURING PLANS INCLUDE RETIRING BY 1999 FOUR COALFIRED UNITS WITH TOTAL CAPACITY OF 340 MEGAWATTS AT THE COMPANY'S HUNTLEY STEAM STATION IN TONAWANDA TAKING OUT OF SERVICE AND MODIFYING IN 1994 ITS 850MEGAWATT OILFIRED OSWEGO STEAM STATION UNIT 5 IN OSWEGO SO THAT IT CAN ALSO BURN NATURAL GAS AND IN 1995 IDLING ITS 850MEGAWATT OSWEGO UNIT 6 WHICH WILL RETURN TO SERVICE IN 1999 WHEN THE FOUR HUNTLEY UNITS ARE RETIRED 9304150157 930415 THIOKOL BUYBACK 3RDPERIOD NET OGDEN UTAH THIOKOL CORP SAID IT INTENDS TO REPURCHASE UP TO 124 OF ITS COMMON STOCK THE COMPANY ALSO REPORTED THAT NET INCOME ROSE 1 IN THE FISCAL THIRD QUARTER THE BUYBACK OF UP TO 25 MILLION SHARES WILL BEGIN IN THE CURRENT QUARTER AND SHOULD BE COMPLETE BY JUNE 30 1994 SAID THE COMPANY WHICH MAKES ROCKET PROPULSION SYSTEMS AND WEAPONS THIOKOL ALSO SAID PROFIT FOR THE PERIOD ENDED MARCH 31 ROSE TO 154 MILLION OR 76 CENTS A SHARE FROM 152 MILLION OR 75 CENTS A SHARE A YEAR EARLIER SALES FELL NEARLY 19 TO 2779 MILLION FROM 3412 MILION REFLECTING A DECLINE IN DEFENSERELATED BUSINESS 9304150156 930415 LEVI STRAUSS PROFIT UP SAN FRANCISCO LEVI STRAUSS ASSOCIATES INC SAID FIRSTQUARTER NET INCOME JUMPED 25 ON A SALES GAIN OF 16 AMID CONTINUED HEAVY DEMAND FOR ITS APPAREL THE CLOSELY HELD COMPANY SAID PROFIT FOR THE PERIOD ENDED FEB 28 WAS 1327 MILLION COMPARED WITH 1058 MILLION A YEAR AGO THE IMPROVEMENT REFLECTED LOWER MARKETING AND OVERHEAD EXPENSES SALES HIT A RECORD 14 BILLION UP FROM 12 BILLION BUOYED BY A 14 RISE IN UNIT SALES 9304150154 930415 LAW LEGAL BEAT LYMEDISEASE RULING RAISES LIABILITY ISSUES BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL THE TICK THAT CAUSES LYME DISEASE MAY HAVE FOUND A NEW WAY TO CAUSE DAMAGE LEGAL LIABILITY A FEDERAL JUDGE'S DECISION HOLDING A PROPERTY OWNER LIABLE FOR NOT DOING ENOUGH TO PROTECT WORKERS FROM LYME DISEASE IS GETTING AS MUCH ATTENTION AS THE LATEST MEDICAL STUDY ON THE DISEASE A FLULIKE ILLNESS THAT CAN CAUSE SEVERE PHYSICAL AND MENTAL DISABILITIES AND IN RARE INSTANCES DEATH THE DECISION LAST WEEK HAS PUT PROPERTY OWNERS ON NOTICE THAT THEY MAY HAVE TO DO MORE THAN PROTECT THEMSELVES FROM THE TICKS THEY ALSO MAY HAVE TO PROTECT THEMSELVES FROM LITIGATION IF SOMEONE BECOMES INFECTED WHILE ON THE PROPERTY THE DECISION BY US DISTRICT JUDGE ROBERT J WARD IN NEW YORK CAME AFTER A WEEKLONG TRIAL IN A CASE INVOLVING FOUR TRACK WORKERS FOR THE LONG ISLAND RAILROAD JUDGE WARD FOUND THAT THE WORKERS CONTRACTED THE DISEASE AFTER THEY WERE BITTEN BY TICKS WHILE ON THE JOB HE ORDERED THE NEW YORK STATEOWNED COMMUTER LINE TO PAY THE WORKERS MORE THAN 560000 TO COMPENSATE FOR PAIN AND SUFFERING IN ADDITION TO MEDICAL EXPENSES AND LOST WAGES SUMMER CAMPS SCHOOLS COMPANIES WITH FACILITIES IN RURAL OR SEMIRURAL AREAS AND HOMEOWNERS WHO RENT TO VACATIONERS ARE AMONG THE GROUPS THAT NEED TO BE WORRIED ABOUT THIS RULING SAYS STEPHEN L KASS AN ATTORNEY AT NEW YORK LAW FIRM BERLE KASS & CASE WHO WROTE A LEGAL ARTICLE THREE YEARS AGO WARNING PROPERTY OWNERS OF THE POTENTIAL LIABILITY EVEN A FAMILY THAT INVITES FRIENDS OVER FOR A BACKYARD BARBECUE MIGHT BE POTENTIALLY LIABLE LAWSUITS FOR INSECT BITES WHILE RARE AREN'T UNHEARDOF A SUMMER VACATIONER IN SOUTHAMPTON NY LAST YEAR SUED THE OWNER OF THE HOME SHE RENTED CLAIMING THAT A TICK ON THE PROPERTY GAVE HER ROCKY MOUNTAIN SPOTTED FEVER IN 1988 ALSO ON LONG ISLAND A JURY ORDERED AN OUTDOOR RESTAURANT TO PAY MORE THAN 3 MILLION TO A PATRON WHO WAS STUNG BY A BEE CAUSING AN ALLERGIC REACTION AND PERMANENT QUADRIPLEGIA THE JUDGE LATER THREW OUT THE AWARD CITING NO EVIDENCE THAT A BEEHIVE WAS NEAR THE RESTAURANT BUT LAWYERS SAY THAT THE ATTENTION TO LYME DISEASE THROUGHOUT THE COUNTRY IT'S MOST PREVALENT IN NEW ENGLAND THE MIDDLE ATLANTIC STATES WISCONSIN MINNESOTA AND THE NORTHWEST MAY MAKE THIS PARTICULAR INSECT BITE A PARTICULARLY LITIGIOUS ONE THE ILLNESS ALREADY HAS PROVED TO BE A SOURCE OF CONTROVERSY IN THE COURTROOM OVER SUCH ISSUES AS THE TYPE OF MEDICAL CARE INSURERS WILL COVER AND MEDICAL MALPRACTICE CLAIMS AGAINST DOCTORS FOR NOT DIAGNOSING THE DISEASE LAWYERS SAY WORKER'SCOMPENSATION CLAIMS RELATED TO LYME DISEASE HAVE BECOME COMMON IN SOME STATES IN RECENT YEARS PAYMENTS IN WORKER'SCOMPENSATION CASES HOWEVER ARE LIMITED TO MEDICAL COSTS AND LOST EARNINGS THE CASE BEFORE JUDGE WARD DEALT WITH A POTENTIALLY MUCH MORE LUCRATIVE AVENUE FOR DAMAGES BECAUSE IT INVOLVED THE QUESTION OF NEGLIGENCE UNLIKE THE WORKER'SCOMPENSATION PROCESS THE LAW GOVERNING INJURIES TO RAIL WORKERS ALLOWS FOR A FINDING OF NEGLIGENCE AND AS A RESULT FOR ADDITIONAL PAYMENTS FOR PAIN AND SUFFERING PROPERTY OWNERS AND LAWYERS SAY THAT NEGLIGENCE CLAIMS CAN BE MADE IN MANY OTHER SITUATIONS WHERE PEOPLE ARE EXPOSED TO THE TICKS THAT CARRY THE DISEASE IRA M MAURER A PARTNER AT NEW YORK LAW FIRM ELKIND FLYNN & MAURER WHO REPRESENTED THE RAIL WORKERS SAYS THE DECISION WILL HELP TO ESTABLISH THE DUTY OF ALL SORTS OF PROPERTY OWNERS TO PROTECT AGAINST LYME DISEASE LAYWERS CAUTION THAT DESPITE JUDGE WARD'S DECISION WINNING A LAWSUIT FOR DAMAGES CAUSED BY LYME DISEASE MAY PROVE DIFFICULT FOR ONE THING VICTIMS HAVE TO DEMONSTRATE THAT THEY HAVE PINNED DOWN WHEN AND WHERE THEY GOT THE TICK BITE JUDGE WARD FOUND THAT THE PLAINTIFFS IN THE RAILROAD CASE GOT LYME DISEASE WHILE WORKING ON PROPERTY OWNED BY THE RAILROAD EVEN THOUGH NONE OF THE MEN REMEMBERED BEING BITTEN THE WORKERS WHO WEREN'T OUTDOORSMEN LIKELY TO BE EXPOSED ELSEWHERE TO THE INSECTS SAID THEY SAW TICKS IN THE HIGH GRASS THAT SURROUNDED SOME WORK SITES A SPOKESWOMAN FOR THE RAILROAD SAYS THAT THERE WAS NO PROOF THAT THE FOUR MEN WERE BITTEN WHILE ON THE JOB AND THAT THE RAILROAD IS CONSIDERING AN APPEAL THE RAILROAD ALSO DISPUTES JUDGE WARD'S FINDING THAT IT DIDN'T DO ENOUGH TO PROTECT EMPLOYEES THE SPOKESWOMAN SAYS THE RAILROAD PROVIDES TRACK WORKERS WITH INSECT REPELLENT AND SPECIAL PANTS TO PROTECT AGAINST BUG BITES DEBATE IN THE SCIENTIFIC COMMUNITY OVER LYME DISEASE COULD OPEN UP SOME LEGAL DEFENSES FOR PROPERTY OWNERS SUCH AS QUESTIONING WHETHER A VICTIM ACTUALLY HAS THE DISEASE RATHER THAN SOME OTHER ILLNESS EARLIER THIS WEEK THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION REPORTED THAT DOCTORS OVERLY DIAGNOSE PATIENTS AS HAVING LYME DISEASE AND DAMAGES AWARDED TO A VICTIM ALSO MIGHT BE INFLUENCED BY MEDICAL DISPUTES OVER THE DEGREE OF HARM THAT LYME DISEASE CAUSES BECAUSE OF HEALTH AND SAFETY CONCERNS SOME GROUPS AND COMPANIES ALREADY TAKE SPECIAL MEASURES TO PROTECT AGAINST LYME DISEASE LAST YEAR AT ITS HEADQUARTERS IN FRANKLIN LAKES NJ BECTON DICKINSON & CO BEGAN USING DAMMINIX A PESTICIDE MADE BY ECOHEALTH INC OF BOSTON THAT IS DESIGNED TO KILL TICKS CARRYING THE DISEASE THE MEDICALSUPPLY COMPANY'S HEADQUARTERS INCLUDE A 120ACRE PARK AND THE COMPANY WAS WORRIED THAT EMPLOYEES WHO WALK ON ITS TRAILS FOR RECREATION MIGHT GET INFECTED RUTH LISTER A SPOKESWOMAN FOR THE AMERICAN CAMPING ASSOCIATION IN INDIANAPOLIS SAYS THAT MANY YOUTH CAMPS ACCREDITED BY HER ORGANIZATION ALSO HAVE BEGUN TO CHECK CHILDREN FOR TICKS AND CAROLE KATZ A MEMBER OF THE BOARD OF THE FIRE ISLAND PINES PROPERTY OWNERS ASSOCIATION SAYS HER GROUP SPENDS 30000 EACH YEAR TO TREAT THEIR 100ACRE SITE OFF THE COAST OF NEW YORK WITH THE TICKKILLING PESTICIDE TRANSLATION REQUIRED CRIMINAL DEFENDANTS WHO DON'T UNDERSTAND ENGLISH ARE ENTITLED TO COPIES OF THEIR INDICTMENTS TRANSLATED INTO THEIR NATIVE LANGUAGES A FEDERAL JUDGE RULED DEFENSE LAWYERS SAY THE RULING BY US JUDGE JACK B WEINSTEIN IN BROOKLYN NY IS UNPRECEDENTED AND SORELY NEEDED IN A FEDERAL COURT SYSTEM THAT HASN'T COME TO GRIPS WITH THE INCREASING NUMBER OF NONENGLISH SPEAKING DEFENDANTS PETER KIRCHHEIMER AN ATTORNEY WITH THE LEGAL AID SOCIETY'S FEDERAL DEFENDERS SERVICES UNIT SAID FEDERAL COURTS IN THE NEW YORK CITY AREA HAVE AN EVEN GREATER NEED THAN OTHER JURISDICTIONS FOR TRANSLATED DOCUMENTS MR KIRCHHEIMER SAID FEDERAL COURTS IN NEW YORK HANDLE AN UNUSUALLY LARGE NUMBER OF DRUGTRAFFICKING CASES AGAINST SPANISHSPEAKING AND CHINESESPEAKING DEFENDANTS WHO RARELY CAN AFFORD TO PAY FOR TRANSLATIONS JUDGE WEINSTEIN'S RULING STEMMED FROM A GROUP OF CASES IN WHICH 18 SPANISHSPEAKING DEFENDANTS WERE CHARGED WITH DRUG AND MONEYLAUNDERING OFFENSES NONE OF THE DEFENDANTS HAD COPIES OF THEIR INDICTMENTS IN SPANISH AND THEY SHARED ONE INTERPRETER DURING COURT PROCEEDINGS JUDGE WEINSTEIN LAST YEAR ORDERED THE FEDERAL PROSECUTOR TO SUPPLY TRANSLATIONS OF THE INDICTMENTS AND THE LAWS THE DEFENDANTS ARE ACCUSED OF BREAKING BUT THE US ATTORNEY'S OFFICE IN BROOKLYN BALKED ARGUING THAT JUDGE WEINSTEIN DIDN'T HAVE THE CONSTITUTIONAL AUTHORITY TO MAKE SUCH A DEMAND AND THAT ONLY CONGRESS COULD ALLOCATE MONEY FOR TRANSLATIONS IN A DECISION LAST MONTH JUDGE WEINSTEIN SAID THAT BECAUSE IT IS FUNDAMENTAL THAT A DEFENDANT MUST BE TOLD WHAT HE HAS BEEN ACCUSED OF IN A LANGUAGE HE OR SHE CAN UNDERSTAND A JUDGE CAN ORDER THAT THE TRANSLATIONS BE PROVIDED TO ENSURE A FAIR TRIAL MATTHEW FISHBEIN CHIEF ASSISTANT US ATTORNEY IN BROOKLYN SAID NO APPEAL WILL BE FILED HE SAID HIS OFFICE DOESN'T OBJECT TO PAYING FOR TRANSLATIONS OF INDICTMENTS AND WRITTEN PLEA AGREEMENTS BUT MAINTAINS THAT THE RULING ONLY APPLIES TO THE DRUG CASE BEFORE JUDGE WEINSTEIN JOINING FORCES SEVEN NEW YORK LAWYERS HAVE FORMED THE LAW FIRM KAUFMANN FEINER YAMIN GILDIN & ROBBINS WHICH WILL SPECIALIZE IN ENTERTAINMENT AND FRANCHISING LAW THE NEW FIRM BRINGS TOGETHER ATTORNEYS FROM THE ENTERTAINMENT LAW FIRM COLTON HARTNICK YAMIN & SHERESKY AND THE FRANCHISING LAW FIRM KAUFMANN GILDIN & CARLIN ARTHUR S HAYES CONTRIBUTED TO THIS COLUMN 9304150153 930415 WHO'S NEWS GREYHOUND LINES INC GREYHOUND LINES INC DALLAS DAVID R SWIFT 46YEAROLD FORMER MARKETING DIRECTOR OF FRITOLAY INC A DIVISION OF PEPSICO INC WAS NAMED SENIOR VICE PRESIDENT OF MARKETING OF THIS BUS COMPANY SUCCEEDING JOSE OLLER 48 WHO LEFT TO PURSUE OTHER INTERESTS 9304150152 930415 COUNTRYWIDE CREDIT CALLS STOCK PASADENA CALIF COUNTRYWIDE CREDIT INDUSTRIES INC CALLED ITS OUTSTANDING 2375 CONVERTIBLE PREFERRED STOCK FOR REDEMPTION ON JULY 6 THE PREFERRED STOCK IS REPRESENTED BY 2375 DEPOSITARY CONVERTIBLE PREFERRED SHARES WHICH TRADE ON THE NEW YORK STOCK EXCHANGE THE DEPOSITARY SHARES WILL BE REDEEMABLE FOR 274146 EACH DEPOSITARY SHARES MAY BE CONVERTED INTO COMMON STOCK THROUGH JULY 6 AT A RATE OF 42 SHARES OF COMMON STOCK FOR EACH DEPOSITARY SHARE COUNTRYWIDE IS PRIMARILY ENGAGED IN MORTGAGE BANKING COUNTRYWIDE'S COMMON SHARES WERE QUOTED AT 33 DOWN 1 YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9304150151 930415 BACK TO FAT TOO SKINNY A BURGER IS A MIGHTY HARD SELL MCDONALD'S LEARNS MCLEAN DELUXE WINS KUDOS BUT NOT MANY CUSTOMERS AS MEGA MAC HOVERS NEAR A BURGER FIT FOR A PRESIDENT BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL SORRY MCLEAN DELUXE MEGA MAC IS HERE THE REDUCEDFAT MCLEAN HAILED BY MCDONALD'S CORP AS THE HEALTHY HAMBURGER TO REVOLUTIONIZE EATING ON THE RUN HAS BOMBED WAGS CALL IT THE MCFLOPPER BUT AS BILL CLINTON ROLLED INTO WASHINGTON SO DID A SANDWICH BETTER SUITED TO HIS FILLMEUP APPETITE THE MEGA MAC IT'S THE BIGGEST FATTEST BURGER EVER TO COME OFF A MCDONALD'S GRILL A HALFPOUND MONUMENT OF GROUND BEEF SLATHERED WITH PICKLED SAUCE SPRINKLED WITH LETTUCE AND ONIONS AND STUFFED INTO THE SAME THREEPIECE BUN THAT HOLDS ITS PUNY PATRIARCH THE BIG MAC TODAY'S FASTFOOD MENUS INCREASINGLY READ LIKE THE REVENGE OF THE COUCH POTATOES BURGER KING FEATURES HEFTY SLABS OF MEATLOAF AND FRIED PORK HARDEE'S PILES MEAT ON THICK SOURDOUGH BREAD PIZZA HUT DELIVERS DOUBLE PIZZAS COMPLETE WITH COOKIES FOR DINNER KFC WHICH ONCE FIDDLED WITH SKINLESS CHICKEN NOW PUSHES EXTRA CRISPY WHILE WENDY'S FOUNDER DAVE THOMAS PITCHES BURGERS WITH BACON AND CHEESE MANY PEOPLE SEEM TO BE PUTTING GOOD TASTE BEFORE GOOD NUTRITION AGAIN AND THAT MEANS FAT SUPERMARKET FREEZER CASES FEATURE LARGEPORTION DINNERS AND HEARTY HAS REPLACED HEALTHY AS THE HOT WORD ON NEW FOODS BACON SALES ROSE 4 LAST YEAR MEANWHILE THE FLURRY OF FAKE FATS DESIGNED TO SLIM DOWN THE NATIONAL WAISTLINE HAS QUIETLY FADED WHAT BETTER IMAGE OF THE CHANGE THAN A BEEFY PRESIDENT STOKING UP AT MCDONALD'S BASKING IN THAT UNSOLICITED ENDORSEMENT THE COMPANY IS PRESSING AHEAD WITH SEVERAL EXTRABIG BURGERS THE MICKEY D CONTAINING ONETHIRD POUND OF GROUND BEEF IS BEING TESTED IN SOME RESTAURANTS AS A DINNERTIME ITEM THE EVEN BIGGER MEGA MAC BEING FEATURED IN SOME WASHINGTONAREA OUTLETS IS A PROMOTIONAL ITEM BUT COULD GO NATIONWIDE IF JUSTIFIED BY SALES CHICAGOAREA MCDONALD'S ARE FEATURING TRIPLE CHEESEBURGERS PATRONS SEEM MORE INTERESTED THAN EVER IN OUR SUBSTANTIAL HAMBURGERS A SPOKESMAN SAYS AND WHAT OF MCLEAN DELUXE THE SANDWICH OF THE FUTURE THOUGH IT WAS ROLLED OUT WITH FULLPAGE ADS AND TV COMMERCIALS THE MCLEAN GETS NO PUBLICITY NOW MCDONALD'S WON'T DISCLOSE FIGURES BUT SOME FRANCHISEES WANT TO GET THE SANDWICH REMOVED FROM THE MENU AND INDUSTRY ANALYSTS BELIEVE IT ACCOUNTS FOR LESS THAN 2 OF SALES A MCDONALD'S SPOKESMAN SAYS THE COMPANY MIGHT DECIDE TO MAKE THE SANDWICH AN OPTIONAL ITEM EACH RESTAURANT COULD DECIDE WHETHER TO OFFER IT BUT ADDS THAT THE JURY IS STILL OUT HOW THINGS CHANGE IN JUST A FEW YEARS WHEN MCDONALD'S INTRODUCED THE MCLEAN DELUXE IN 1991 IT WAS NATIONAL NEWS A HEALTHY BREAKTHROUGH FOR THE AMERICAN PUBLIC CHEERED A NEW YORK TIMES EDITORIAL THE NATIONAL BASKETBALL ASSOCIATION MADE THE MCLEAN ITS OFFICIAL SANDWICH EXPECTATIONS RAN SO HIGH THAT THE BEEF INDUSTRY COMMISSIONED A STUDY TO DETERMINE WHETHER IT COULD MEET DEMAND FOR THE SLIMMER MEAT IT COULD HUNDREDS OF SUPERMARKETS BEGAN STOCKING EXTRALEAN GROUND BEEF IN THE PHILIPPINES WHERE THE MCLEAN'S SEAWEEDBASED ADDITIVE IS BIG BUSINESS THERE WERE PREDICTIONS IT WOULD SPUR THE ECONOMY THE MCLEAN SEEMED PERFECTLY SUITED FOR FASTFOOD'S FUTURE CRITICS HAD ACCUSED MCDONALD'S AND OTHER CHAINS OF CONTRIBUTING TO HEART DISEASE AND OTHER AILMENTS PARTICULARLY AMONG CHILDREN A RETIRED NEBRASKA BUSINESSMAN NAMED PHIL SOKOLOF WHO HAD SUFFERED A NEARFATAL HEART ATTACK CRUSADED AGAINST WHAT HE CALLED THE POISONING OF AMERICA IN NEWSPAPER ADS MR SOKOLOF NOW 70 BERATED CORPORATE FOOD TITANS FOR THEIR PRODUCTS' HIGH CHOLESTEROL AND FAT AND IN 1990 HE BLASTED MCDONALD'S SPECIFICALLY WITH A HEADLINE THAT READ YOUR HAMBURGERS HAVE TOO MUCH FAT IRRESPONSIBLE WAS THE IMMEDIATE RESPONSE OF MCDONALD'S US PRESIDENT EDWARD H RENSI AND HE WASTED NO TIME IN FIGHTING BACK BY DAY'S END THE OAK BROOK ILLBASED COMPANY HAD ANNOUNCED IT WAS SWITCHING TO LOWERFAT SHAKES AND TESTING A TALLOWLESS FRYING FAT IN THE MEANTIME THE CAIN HAD BEEN QUIETLY DEVELOPING FOR MONTHS WHAT WOULD BECOME THE MCLEAN DELUXE WHICH EVOLVED FROM RESEARCH AT ALABAMA'S AUBURN UNIVERSITY TO DEVELOP LEANER CUTS OF MEAT WHILE MOST MCDONALD'S HAMBURGERS CONTAIN 20 FAT BY WEIGHT THIS NEW ONE WOULD HAVE ONLY 9 THAT 9 BALLOONS TO 28 FAT WHEN BASED ON CALORIES RATHER THAN WEIGHT BUT STILL SQUEAKS UNDER A RECOMMENDATION BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THAT CONSUMERS GET NO MORE THAN 30 OF THEIR CALORIES FROM FAT ADD CHEESE AND THE MCLEAN EXCEEDS THE GUIDELINE SO WHAT HAPPENED AS THOSE WHO TRIED THE LOWFAT MCLEAN DELUXE SOON LEARNED LESS GREASE MAY BE GOOD FOR THE ARTERIES BUT NOT FOR FLAVOR AND IT CAN LEAVE THE STOMACH FEELING LESS FILLED MOREOVER MCDONALD'S LIKE MANY OTHERS MAY HAVE OVERESTIMATED THE NATION'S EMBRACE OF FITNESS A RECENT SURVEY BY LOUIS HARRIS & ASSOCIATES FOUND THAT WHILE 33 OF THE AMERICAN ADULTS QUERIED EXERCISE REGULARLY THAT WAS DOWN FROM 37 IN 1991 NOT ONLY HAVE PUBLIC HABITS CHANGED BUT IN ITS EAGERNESS TO DELIVER THE MCLEAN MCDONALD'S VIOLATED SOME OF ITS OPERATING TENETS USUALLY THE COMPANY TESTS POTENTIAL MENU ADDITIONS FOR YEARS THE SEARCH FOR THE RIGHT PIZZA PRODUCT ALREADY IS MORE THAN FIVE YEARS OLD THE MCLEAN WAS RUSHED OUT AFTER ONLY FOUR MONTHS' TESTING IN RESTAURANTS MORE EXTENSIVE RESEARCH MIGHT HAVE EXPOSED FLAWS AND THERE WERE SEVERAL THE BIGGEST WAS TASTE AFTER A BITE OR TWO CONSUMERS REALIZED SOMETHING WAS MISSING BY WRINGING OUT HALF THE FAT MCDONALD'S ALSO ELIMINATED MUCH OF ITS BURGERS' FAMILIAR FLAVOR AND MOUTH FEEL BECAUSE OF HOW THEY ARE MADE SOMETIMES MCLEANS ALSO TASTE DRIER TO MAKE UP FOR THE LOST FAT THE PATTIES CONTAIN SEASONED WATER WHICH CAN STEAM OFF RAPIDLY DURING COOKING THE COMPANY ACKNOWLEDGES THAT PREPARATION TOLERANCES ARE A LITTLE TIGHTER THAT MEANS THE SANDWICH WON'T ALWAYS TASTE THE SAME ONE MAY BE JUICY THE NEXT RUBBERY AND DRY I EAT 'EM A LOT AND SIX OUT OF 10 AREN'T SATISFACTORY SAYS BILL O'NEILL MARKETING VICE PRESIDENT AT FAIRBANK FARMS AN ASHVILLE NY COMPANY THAT SUPPLIES LEAN BEEF TO SUPERMARKETS FOR MCDONALD'S A NAME SYNONYMOUS WITH PREDICTABLE FOOD THAT'S A NIGHTMARE QUALITY CONTROL IS SO IMPORTANT AT MCDONALD'S THAT TECHNICIANS CHECK THE HUES OF SAUCE BATCHES AGAINST MASTER COLOR CHIPS MOREOVER ONCE OFF THE GRIDDLE MCLEANS DRY OUT QUICKLY AND DON'T HOLD WELL SO WHILE OTHER BURGERS CAN WAIT IN WARMING CHUTES MCLEANS USUALLY ARE MADE TO ORDER THAT MAY MEAN A TWOMINUTE WAIT AN ETERNITY IN FASTFOOD TIME MANY CUSTOMERS WON'T PUT UP WITH IT THEN THERE IS THE SEAWEED FACTOR MCDONALD'S USES CARRAGEENAN POWDER TO BIND THE WATER AND FLAVOR ENHANCERS WITH THE MEAT DERIVED FROM A SEAWEED CARRAGEENAN IS A COMMON FOOD ADDITIVE IT JELLS PUDDINGS AND KEEPS THE CHOCOLATE IN MILK FROM SETTLING AND ALSO IS USED IN COSMETICS AND TOOTHPASTE THOUGH THE MCLEAN PATTY IS 90 MEAT 9 WATER AND ONLY 1 CARRAGEENAN RIVALS POUNCED ON A BURGER HELD TOGETHER WITH SEAWEED COMMERCIALS FOR HARDEE'S FOOD SYSTEMS INC'S ALLBEEF LEAN HAMBURGER PROMISED IT WOULD NEVER CONTAIN ANY SEAWEED ADDITIVE IT BOMBED TOO THE MCLEAN EVEN INSPIRED JOKES FROM JOHNNY CARSON ON THE TONIGHT SHOW ANOTHER DETERRENT PRICE GENERALLY THE MOST EXPENSIVE BURGER ON THE MENU A MCLEAN WITHOUT CHEESE IN DOWNTOWN CHICAGO COSTS 209 COMPARED WITH 195 FOR A BIG MAC AND 199 FOR A QUARTER POUNDER EVEN THE NBA BENCHED THE MCLEAN BEFORE LONG MCDONALD'S SOON SAW THE BURGER WAS IN TROUBLE AND TRIED TO SALVAGE IT THE MCLEAN HAS PLAYED TO MIXED OPENING REVIEWS THE COMPANY'S 1991 ANNUAL REPORT SAID BUT IT'S BEING MADE MORE FLAVORFUL AND JUICIER WITH SOME INGREDIENT ENHANCEMENTS COMPETITORS WATCHED CLOSELY MCDONALD'S HELPED US TO MAKE OUR DECISION TO DROP A LEAN BURGER AFTER SEVERAL MONTHS A HARDEE'S SPOKESMAN SAYS WE KNEW HOW MUCH MONEY THEY'D SPENT IF IT WASN'T WORKING OUT FOR MCDONALD'S THERE WAS A VERY SLIM CHANCE FOR IT TO WORK OUT FOR US CARL'S JR A CALIFORNIABASED HAMBURGER CHAIN TESTED A GROUNDBEEF SANDWICH WITH CARRAGEENAN FOR SEVERAL MONTHS AND CAME TO THE SAME CONCLUSION THE MCLEAN LAUNCH WAS A SYMPTOM OF WHAT A NUMBER OF US IN THE INDUSTRY WERE DOING SAYS MR GIBBONS OF BURGER KING HIS CHAIN SOUGHT TO LIGHTEN ITS MENU BY ADDING A GRILLED CHICKEN SANDWICH WHICH TOOK OFF AND WEIGHT WATCHERS MEALS WHICH DIDN'T BURGER KING ALSO EXPERIMENTED WITH A SANDWICH MADE OF WHAT ITS INVENTORS CALL RESTRUCTURED MEAT BITESIZED PIECES OF LEAN BEEF BOUND TOGETHER WITH ALGINATE ANOTHER PRODUCT OF THE SEA IT WAS SOLD AS STEAK BUT BURGER KING RECENTLY DROPPED THE SANDWICH FROM ITS DINNER MENU AND REPLACED IT WITH A MEATLOAF SPECIAL ABOUT THE ONLY PLACE EXTRALEAN BURGERS SELL REALLY WELL IS AT WALT DISNEY THEME PARKS AND HOTELS BUT THEN THAT'S THE ONLY KIND THEY OFFER TO SOME IN THE BURGER BUSINESS MCDONALD'S PITCH FOR MCLEAN WAS TREASON WE AND EVERYONE ELSE HAVE INVESTED BILLIONS OF DOLLARS IN ADVERTISING AND MARKETING CREATING A SPECIFIC IMAGE OF A HAMBURGER NO FILLERS NO ADDITIVES NONE OF THAT STUFF SAYS A SPOKESMAN FOR WENDY'S INTERNATIONAL INC IT SHOULD HAVE SOME FAT BECAUSE THAT'S WHAT MAKES A HAMBURGER GOOD EVEN SOME MCDONALD'S FRANCHISEES HAVE TROUBLE EMBRACING THE MCLEAN AS LONG AS IT'S A NATIONAL PRODUCT WE'RE GOING TO SUPPORT IT SAYS STEVE SULLINS WHO OPERATES FIVE MCDONALD'S RESTAURANTS IN THE DALLAS AREA ASKED IF HE WOULD PREFER IT BE OPTIONAL MR SULLINS REPLIES YOU CAN READ BETWEEN THE LINES NONETHELESS THERE IS ONE IMPORTANT ARENA IN WHICH THE MCLEAN DELUXE HAS BEEN A BIG SUCCESS PUBLIC RELATIONS IN MUZZLING CRITICS IT TOOK A BIG STEP TOWARD WHAT THOMAS W GLASGOW JR EXECUTIVE VICE PRESIDENT AND CHIEF OPERATIONS OFFICER CALLS A PERCEPTUAL CHANGE IN THE COMPANY'S IMAGE THE SANDWICH GAVE MCDONALD'S A HALO SAID ONE ANALYST ANOTHER MICHAEL MUELLER OF MONTGOMERY SECURITIES SAYS THE BURGER DELIVERS THE HEALTH MESSAGE OTHERWISE THERE'D BE NO REASON TO HAVE IT IF MCDONALD'S DOES DECIDE TO MAKE THE MCLEAN DELUXE AN OPTIONAL MENU ITEM IT IS LIKELY TO DO SO QUIETLY A FORMAL ANNOUNCEMENT WOULD INVITE NEW ATTACKS THIS TIME THAT THE CHAIN REALLY WASN'T SERIOUS ABOUT SERVING HEALTHIER FOOD IN SOME WAYS THAT WOULD BE A BAD RAP AS THE COMPANY THAT FEEDS MORE PEOPLE THAN ANY OTHER PRIVATE FOOD SERVERSOME 20 MILLION DAILY BY ITS OWN COUNT MCDONALD'S HAS BEEN AT THE FOREFRONT OF NUTRITION ENHANCEMENTS IN THE FASTFOOD BUSINESS IT WAS AMONG THE FIRST CHAINS TO GO WITH REDUCEDFAT SHAKES IT REPLACED SALAD CHEESE WITH SHREDDED CARROTS SQUEEZED FAT FROM SAUCES AND BUNS AND SKINNED THE CHICKEN MADE INTO MCNUGGETS SALADS HAVE BEEN A STAPLE SINCE 1986 THE COMPANY'S FAMED FRENCH FRIES NOW SIZZLE IN OIL CONTAINING NO BEEF TALLOW THE TALLOW GAVE THE POTATOES SOME OF THEIR FLAVOR BUT ADDED SATURATED FAT TO SHRINK THE AMOUNT OF SHORTENING REQUIRED COMPANY ENGINEERS EVEN REDESIGNED FRY BASKETS MCDONALD'S ALSO WAS A PIONEER IN POSTING INFORMATION ON HOW MANY CALORIES ITEMS CONTAINED STILL AT A NUTRITION CONFERENCE HE SPONSORED LAST YEAR MR RENSI THE MCDONALD'S PRESIDENT EXPRESSED FRUSTRATION ABOUT THE COMPANY'S NUTRITIONAL REPUTATION WE'VE HAD A VERY DIFFICULT TIME COMMUNICATING NUTRITION TO CUSTOMERS HE SAID THERE'S JUST NO WAY TO PUT IT ON TV AND MAKE IT MEANINGFUL AT AUBURN UNIVERSITY THESE DAYS THE MEAT RESEARCHERS WHO PIONEERED LEAN BEEF ARE NOW TRYING TO DEVELOP LOWFAT PORK SAUSAGE BUT DON'T EXPECT TO SEE IT ON THE MENU AT PRESIDENT CLINTON'S MCDONALD'S ANY TIME SOON 9304150150 930415 ECONOMY INVENTORIES INCREASED 04 IN FEBRUARY AS WEAK AUTO SECTOR HURT RETAIL SALES BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A DROP IN AUTOMOBILE SALES IN FEBRUARY HELPED FUEL THE LARGEST BUILDUP IN INVENTORIES IN SEVEN MONTHS GOVERNMENT FIGURES SHOW INVENTORIES ROSE 04 TO 85405 BILLION IN FEBRUARY FROM 85102 BILLION IN JANUARY THE COMMERCE DEPARTMENT SAID ALTHOUGH ANALYSTS WERE DISAPPOINTED BY THE FEBRUARY FIGURES AS WELL AS THE DEPARTMENT'S REPORT TUESDAY SHOWING A 1 DECLINE IN MARCH RETAIL SALES THEY DON'T SEE A LONGERTERM TREND THE INVENTORY INCREASE WAS DUE LARGELY TO FEBRUARY'S WEAK RETAIL SALES THE 720 MILLION DECLINE IN AUTO SALES WAS MAINLY RESPONSIBLE FOR THE OVERALL 570 MILLION DECLINE IN RETAIL SALES IN TURN RETAIL INVENTORIES INCREASED BY MORE THAN 27 BILLION TO 26515 BILLION WHILE MANUFACTURING AND WHOLESALE INVENTORIES WERE LITTLE CHANGED A BUILDUP OF GOODS IN STORES AND WAREHOUSES SOMETIMES AUGURS ANEMIC ECONOMIC GROWTH WHEN UNSOLD GOODS ACCRUE BUSINESSES TEND TO SLOW ORDERS AND FACTORIES TEND TO CUT PRODUCTION BUT MOST ANALYSTS SAID IT WAS TOO EARLY TO DRAW ANY CONCLUSIONS FROM FEBRUARY'S FIGURES INSTEAD ANALYSTS ATTRIBUTED THE FALLING RETAIL SALES AND RISING INVENTORIES PARTLY TO A TEMPORARY DROP IN CONSUMER CONFIDENCE AND BAD WINTER WEATHER IN THE NORTHEAST AND WEST PEOPLE COULDN'T GET OUT OF THEIR HOMES FOR DAYS SAID MARILYN SCHAJA AN ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP MOREOVER ANALYSTS NOTED THAT TOTAL SALES WHICH CONSIST OF ALL MANUFACTURING WHOLESALE AND RETAIL GOODS DID IMPROVE A MODEST 06 IN FEBRUARY THAT INCREASE WAS ENOUGH TO KEEP THE INVENTORYTOSALES RATIO AT A 10YEAR LOW OF 146 FOR THE THIRD STRAIGHT MONTH THE RATIO INDICATES THE NUMBER OF MONTHS IN THIS CASE 146 IT WOULD TAKE TO CONSUME INVENTORIES AT THE CURRENT SALES RATE RICHARD RIPPE CHIEF ECONOMIST AT PRUDENTIAL SECURITIES INC SAID THE INVENTORY GAIN WAS MORE OR LESS REQUIRED UP TO NOW BUSINESS HAS BEEN CAUTIOUS ABOUT BUILDING UP INVENTORIES IN THIS EXPANSION REFLECTING CONCERN ABOUT ITS PACE AND LONGEVITY BUT WITH TOTAL SALES INCHING UP HE SAID INVENTORIES HAD TO PICK UP JUST TO KEEP THE INVENTORYTOSALES RATIO CONSTANT ALL FIGURES ARE SEASONALLY ADJUSTED HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN FEBRUARY THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9304150149 930415 INTERNATIONAL WESTERN GERMAN RETAIL SALES FRANKFURT GERMANY WESTERN GERMAN RETAIL SALES FELL AGAIN IN FEBRUARY PROVIDING FURTHER EVIDENCE THAT THE GERMAN ECONOMY IS IN A TAILSPIN THE FEDERAL STATISTICS OFFICE PLAYED DOWN THE 16 INFLATIONADJUSTED DECLINE DESCRIBING IT AS ALMOST EQUAL TO JANUARY'S LEVEL BUT THIS IS IN LIGHT OF THE 34 RETAIL SALES PLUNGE IN JANUARY FROM DECEMBER WHICH WAS LARGELY THE RESULT OF HOLIDAYSEASON SALES IN DECEMBER AND THE JAN 1 INCREASE IN THE COUNTRY'S VALUEADDED TAX GERMAN RETAIL SALES DATA AREN'T SEASONALLY ADJUSTED THE STATISTICS OFFICE ALSO REPORTED THAT WESTERN GERMAN SALES FELL 8 FROM FEBRUARY 1992 IN JANUARY RETAIL SALES WERE 10 LOWER THAN A YEAR BEFORE 9304150148 930415 APACHE DISCOVERS NATURAL GAS HOUSTON APACHE CORP SAID IT DISCOVERED NATURAL GAS IN A WILDCAT WELL DRILLED OFFSHORE WESTERN AUSTRALIA THE WELL FLOWED ABOUT 338 MILLION CUBIC FEET OF GAS AND 1714 BARRELS OF CONDENSATE A DAY APACHE WHICH OWNS A 20 INTEREST IN THE WELL SAID IT INTENDS TO DRILL DELINEATION WELLS TO DETERMINE THE EXTENT AND SIZE OF THE WELL LATER THIS YEAR IN ADDITION THE ECONOMIC FEASIBILITY OF THE DISCOVERY IS SUBJECT TO FURTHER TECHNICAL AND COMMERCIAL EVALUATIONS SAID THE COMPANY PRODUCTION FACILITIES PARTLY OWNED BY APACHE ARE LOCATED ABOUT 45 MILES FROM THE WELL 9304150146 930415 WHO'S NEWS SARA LEE CORP SARA LEE CORP CHICAGO MICHAEL FLATOW 42 YEARS OLD WAS NAMED PRESIDENT OF THIS FOOD AND CONSUMER PRODUCTS COMPANY'S L'EGGS PRODUCTS UNIT AND M CATHY VOLKER WAS NAMED TO SUCCEED HIM AS PRESIDENT OF HANES HOSIERY BOTH EFFECTIVE JULY 1 MS VOLKER 38 IS CURRENTLY VICE PRESIDENT/GENERAL MANAGER RETAIL FOR HANES HOSIERY MR FLATOW SUCCEEDS RON ZABEL WHO RECENTLY JOINED FRUIT OF THE LOOM INC CHICAGO AS PRESIDENT FOR CONSUMER PACKAGED PRODUCTS 9304150144 930401 LETTERS TO THE EDITOR A SIMPLE SOLUTION COMPLICATED BY ERROR WILLIAM TUCKER'S MARCH 12 EDITORIALPAGE ARTICLE A MODEL FOR DESTROYING A CITY HAS ERRORS OF FACT AND THEORY FIRST HE IDENTIFIES ME AS THE NEW YORK CITY COUNCIL PRESIDENT A POST I HAVE NEVER HELD NEXT HE PLACES ME IN A RENTCONTROLLED APARTMENT I NEVER HAD ONE AS FOR HIS MORE SUBSTANTIAL ERRORS HE BEGINS BY LINKING HOUSING ABANDONMENT TO RENT CONTROL AT FIRST BLUSH THIS MAY MAKE SOME SENSE UNTIL ONE TRIES TO SQUARE IT WITH THE FACT THAT HOUSING ABANDONMENT IS PREVALENT IN MANY MUNICIPALITIES THAT DON'T HAVE RENT CONTROLS HIS MAIN THEORETICAL THRUST THAT RENT CONTROL PREDOMINATELY BENEFITS THE WELLOFF IS EQUALLY OFF THE MARK THE ARTICLE PRESENTS NO EVIDENCE OF THIS IN NEW YORK AND COMPLETELY FAILS TO DIFFERENTIATE BETWEEN THE CITY'S RENTCONTROL AND RENTREGULATION PROGRAMS PROGRAMS THAT HAVE DIFFERENT EFFECTS ON RENTAL RATES AND TENURE AND IT ESCAPES ME HOW RENT CONTROL CAN BOTH HAVE NO EFFECT ON RENTS IN HARLEM AND BE RESPONSIBLE FOR ABANDONMENT THERE HL MENCKEN ONCE COMMENTED THAT FOR EVERY COMPLEX DIFFICULT PROBLEM THERE IS A SIMPLE AND EASY SOLUTION AND IT IS WRONG SEE RELATED LETTER LETTERS TO THE EDITOR TOWN AND COUNTRY WSJ APRIL 14 1993 9304010091 9304150143 930415 INTERNATIONAL THREE AUTO MAKERS IN EUROPE PLAN TO CUT WORKER HOURS OUTPUT BONN THREE EUROPEAN AUTO MAKERS ANNOUNCED PRODUCTION CUTBACKS YESTERDAY AMID THE CONTINENT'S DOWNTURN IN SALES IN GERMANY ADAM OPEL AG AND AUDI AG SEPARATELY SAID THEY HAD PLANS FOR SHORTENED WORK SHIFTS IN THE SECOND QUARTER FIAT SPA OF ITALY MEANWHILE ANNOUNCED PLANS FOR TEMPORARY LAYOFFS FIAT SAID IT WILL LAY OFF IN MAY 33000 WORKERS FOR TWO WEEKS AND 7000 FOR AN ADDITIONAL WEEK TO CUT ITS PRODUCTION BY 35000 CARS THE GROUP WHICH EMPLOYS 115000 WORKERS IN ITS AUTO DIVISION SAID THE TEMPORARY LAYOFFS WERE IN RESPONSE TO THE SLUGGISH DEMAND ON THE EUROPEAN AND DOMESTIC MARKETS FIAT WHICH IS CONTROLLED BY THE AGNELLI FAMILY HAS CLOSED ITS MANUFACTURING FACILITIES FOR ONE TO THREE WEEKS EVERY MONTH SINCE FEBRUARY 1991 TO REDUCE AUTO PRODUCTION AND EXCESS STOCKS OPEL A UNIT OF GENERAL MOTORS CORP OF THE US CONFIRMED REPORTS THAT SOME 25000 WORKERS AT ITS BOCHUM AND RUESSELSHEIM PLANTS WOULD BE IDLED FOR TWO DAYS IN APRIL THREE DAYS OF SHORT SHIFTS ALSO ARE PLANNED IN MAY FOR MORE THAN 12000 WORKERS AT RUESSELSHEIM AN OPEL SPOKESMAN SAID HE COULDN'T RULE OUT THAT THE BOCHUM PLANT WHICH HAD BEEN LEFT UNAFFECTED BY PREVIOUS WORK STOPPAGES WOULD NOT BE AFFECTED IN MAY AS WELL AUDI THE LUXURY CAR UNIT OF GERMANY'S VOLKSWAGEN AG ANNOUNCED IT WOULD IDLE A TOTAL OF 25000 WORKERS MAY 1719 OF THE WORKERS AFFECTED 18000 ARE EMPLOYED AT THE INGOLSTADT PLANT AND THE OTHER 7000 AT NECKARSULM 9304150142 930415 WHO'S NEWS LINDSAY MANUFACTURING CO LINDSAY MANUFACTURING CO LINDSAY NEB CLAYTON YEUTTER 62 YEARS OLD A FORMER SECRETARY OF AGRICULTURE AND TRADE REPRESENTATIVE UNDER PRESIDENT BUSH WAS NAMED TO THE BOARD OF THIS MAKER OF IRRIGATION EQUIPMENT INCREASING THE NUMBER OF DIRECTORS TO FIVE 9304150141 930415 RAYROCK SUBSIDIARY WILL DIVIDE ITS STOCK INTO 2 CLASSES OF SHARES TORONTO RAYROCK YELLOWKNIFE RESOURCES INC SAID ITS INTERNATIONAL MINING SUBSIDIARY PLANS TO DIVIDE ITS STOCK INTO TWO SEPARATE CLASSES OF SHARES TO ENSURE THAT RAYROCK MAINTAINS CONTROL OF THE UNIT THE UNIT MINERA RAYROCK INC WILL ISSUE ONE SUBORDINATE VOTING SHARE CARRYING ONE VOTE AND ONE MULTIPLE VOTING SHARE WITH 10 VOTES IN EXCHANGE FOR EVERY TWO SHARES OF COMMON CURRENTLY HELD A RAYROCK SPOKESWOMAN SAID THAT MINERA EXPECTS TO ISSUE ADDITIONAL SUBORDINATE VOTING SHARES TO FINANCE MINING PROJECTS BUT DOESN'T WANT TO DILUTE RAYROCK'S CONTROL BLOCK TO BELOW 50 THE PROPOSED SHARE CAPITAL REORGANIZATION IS SUBJECT TO VARIOUS APPROVALS MINERA SAID IT ALREADY HAS REACHED AGREEMENT WITH INVESTORS TO ISSUE 287 MILLION CANADIAN DOLLARS US228 MILLION IN SHAREPURCHASE WARRANTS WHICH WILL BE CONVERTIBLE INTO SUBORDINATE VOTING SHARES THE FUNDS WILL HELP FINANCE DEVELOPMENT OF MINERA'S IVAN COPPER DEPOSIT IN CHILE AND PAY FOR OTHER MINERAL EXPLORATION WORK RAYROCK A TORONTO NATURAL RESOURCES CONCERN NOW HOLDS 503 OF MINERA'S EQUITY RAYROCK HAS AGREED TO CONVERT ITS MINERA PREFERRED SHARES INTO COMMON STOCK AND TO ACCEPT NEW MINERA SHARES IN EXCHANGE FOR CANCELING C34 MILLION OF MINERA DEBT AFTER THE TRANSACTIONS AND THE WARRANT ISSUE RAYROCK WILL OWN 45 OF MINERA'S EQUITY AND WILL HOLD 58 OF THE VOTES 9304150139 930415 WHO'S NEWS FIRST UNION CORP FIRST UNION CORP CHARLOTTE NC FRED M WINKLER 49 YEARS OLD WAS NAMED HEAD OF THE CREDIT CARD UNIT OF THIS BANK HOLDING COMPANY MR WINKLER WAS PREVIOUSLY JOB CHIEF OPERATING OFFICER FOR AT&T UNIVERSAL CARD SERVICES HE SUCCEEDS RON DAVIS 45 WHO WILL BECOME A COUNTY EXECUTIVE AT THE FIRST UNION NATIONAL BANK OF NORTH CAROLINA 9304150137 930401 COUNTERPOINT AN ENVIRONMENTAL IMPACT STATEMENT FOR IMMIGRATION BY B MEREDITH BURKE THE CLINTONGORE ADMINISTRATION IS VIEWED BY BOTH FRIENDS AND FOES AS FAR MORE ENVIRONMENTALLY FRIENDLY THAN ITS PREDECESSOR AMONG ITS GOALS IS SAFEGUARDING AND PASSING ALONG AN ECOLOGICALLY HEALTHY AND PHYSICALLY ATTRACTIVE ENVIRONMENT YET TO DATE AN ADMITTEDLY EARLY ONE NONE OF ITS MEMBERS HAS LINKED THIS GOAL WITH ITS NECESSARY PRECONDITION AN ENVIRONMENTAL IMPACT STATEMENT FOR POPULATION GROWTH LACKING SUCH A REFERENCE MAP THE CLINTON ADMINISTRATION MAY UNWITTINGLY COMPROMISE AMERICA'S DEMOGRAPHIC FUTURE BY REGARDING POPULATION GROWTH ESPECIALLY THAT DUE TO IMMIGRATION AS SIMPLY A MATTER OF DOLLARS AND CENTS EARLIER THIS YEAR WHEN PRESIDENT CLINTON TOLD THE CALIFORNIA ECONOMIC SUMMIT THAT THE FEDERAL GOVERNMENT SHOULD HELP STATES BURDENED BY IMMIGRATION HE CLEARLY HAD FINANCIAL AID IN MIND BUT JUST AS UNTIL DECEMBER THE CENSUS BUREAU DISCOUNTED IMMIGRATION'S EFFECTS ON FERTILITY AND POPULATION GROWTH SO TOO ELECTIVE AND APPOINTED OFFICIALS HAVE IGNORED BOTH THE LOCALIZED AND THE QUALITATIVE EFFECTS OF IMMIGRATION REALISTICALLY THE US AS A WHOLE DOES NOT RECEIVE IMMIGRANTS CALIFORNIA NEW YORK TEXAS ILLINOIS FLORIDA AND NEW JERSEY DO 82 OF THE TOTAL THESE STATES HAVE LONG PASSED THE POINT WHERE ADDITIONAL POPULATION IS DESIRABLE LAKE OKEECHOBEE FLORIDA'S LARGEST LAKE AND THE HEART OF SOUTH FLORIDA'S NATURAL FREEFLOWING DRAINAGE SYSTEM IS NOW ENCIRCLED BY A DIKE ASSAULTED BY MORE THAN 1500 MILES OF CANALS AND LEVEES AND THE DAILY RECIPIENT OF 15 TONS OF PHOSPHORUS WASTE FROM CATTLERAISING HASTENING ITS BIOLOGICAL DEATH THE EVERGLADES IS DYING FROM BOTH DRAINAGE AND HUMAN CONSTRUCTION THE NATIONAL AGRICULTURAL LANDS STUDY PROJECTS AT THE CURRENT RATE OF CONVERSION OF AGRICULTURAL LAND TO NONAGRICULTURAL USES FLORIDA WILL LOSE ALL ITS PRIME AGRICULTURAL LAND BY THE YEAR 2000 IN THE 1950S LOS ANGELES COUNTY LED THE NATION IN THE VALUE OF AGRICULTURAL PRODUCTION ITS FOUR NEIGHBORING COUNTIES WERE AGRICULTURALLY BASED TODAY THIS IRREPLACEABLE FERTILE LAND IS ASPHALTCOVERED WHILE POLLUTANTS EMITTED PER CAR HAVE BEEN CUT IN HALF THE DOUBLING OF THE POPULATION IN THE PAST 30 YEARS HAS WIPED OUT NEARLY ALL THE POTENTIAL AIR QUALITY GAINS ITS CURRENT RESIDENTS LOOK OUT UPON A DEGRADED NATURAL SETTING UNRECOGNIZABLE AS THE BEAUTIFUL COMBINATION OF BEACH AND MOUNTAINS THAT ENCHANTED THE SERVICEMEN AND FACTORY WORKERS OF WORLD WAR II IN THE PAST FOUR DECADES THE SAN FRANCISCO BAY AREA HAS LOST ONETHIRD OF THE TOTAL PASTURE AND CROP ACREAGE THAT ONCE EXISTED THE GREENBELT ALLIANCE PREDICTS THERE WILL BE VIRTUALLY NO FERTILE CROPLAND LEFT IN THIS AREA BY THE YEAR 2000 TEXAS LOST MORE THAN 600000 ACRES OF PRIME FARMLAND TO PERMANENT NONAGRICULTURAL USES JUST BETWEEN 1977 AND 1982 YET FOES OF IMMIGRATION CONTROL AND THE DEMOGRAPHICALLY IGNORANT ERRONEOUSLY ATTRIBUTE HIGH LEVELS OF POPULAR SUPPORT FOR TIGHTER IMMIGRATION LIMITS TO XENOPHOBIA AND SHORTTERM ECONOMIC INTERESTS THEY DEEM CITIZEN CONCERNS ABOUT THE QUALITY OF LIFE FOR THEMSELVES AND THEIR CHILDREN SELFINDULGENT CONSIDER THE KEYNOTE SPEAKER AT A RECENT WORLD AFFAIRS COUNCIL IMMIGRATION CONFERENCE IN PALO ALTO CALIF AN OFFICIAL IN THE STATE DEPARTMENT'S BUREAU OF REFUGEE AFFAIRS HE IGNORED THE DISPROPORTIONATE EFFECT OF BOTH REFUGEE AND IMMIGRANT ADMISSIONS UPON CALIFORNIA AND SHRUGGED OFF AUDIENCE CONCERNS ABOUT THE ENVIRONMENT I ASKED WHAT SIZE POPULATION WOULD YOU CONSIDER TOO MUCH FOR CALIFORNIA ITS 1970 POPULATION OF 20 MILLION HAS GROWN TO MORE THAN 30 MILLION OH 100 MILLION OR SO HE REPLIED AIRILY LOOK HE INSTRUCTED ME EVENTUALLY IT WILL GET UNPLEASANT ENOUGH THAT PEOPLE WILL START TO MOVE OUT AND THE SITUATION WILL RESOLVE ITSELF THAT'S THE FREE MARKET SOLUTION I DEPLORE SEVERAL ASSUMPTIONS EMBODIED IN HIS REPLY ONE IS THE SLASH AND BURN URBANIZATION TENET IT IS OK TO DESPOIL ONE AREA AND JUST MOVE ON STAYING PUT AND FIGHTING TO PRESERVE ONE'S HABITAT ARE QUESTIONABLE BEHAVIOR ANOTHER FALLACIOUS ASSUMPTION IS THAT THE RESOURCE PROBLEM IS SOLVED THROUGH DISPERSAL OF POPULATION HE FAILS TO SEE THAT INHABITANTS OF AN INDUSTRIALIZED COUNTRY MAKE DEMANDS UPON RESOURCES AND ARE RESPONSIBLE FOR POLLUTION FOR PRODUCTS THEY CONSUME AT LOCALES FAR FROM THEIR HOMES THE ACTIVIST GROUP POPULATIONENVIRONMENT BALANCE DEFINES CARRYING CAPACITY AS THE NUMBER OF PEOPLE WHO CAN BE SUSTAINABLY SUPPORTED IN A GIVEN AREA WITHOUT DEGRADING THE NATURAL SOCIAL CULTURAL AND ECONOMIC ENVIRONMENT FOR PRESENT AND FUTURE GENERATIONS WHEN MIGRATION BECOMES IMPERATIVE CLEARLY THE BASE POPULATION HAS EXCEEDED THIS CAPACITY HIS REPLY ALSO PLACES A MUCH LOWER VALUE ON ACCESS TO RURAL AND WILDERNESS AREAS THAN DOES THE AMERICAN PUBLIC PERHAPS AN ARTIFACT OF A SOCIETY THAT SO RECENTLY ENJOYED A FRONTIER AMERICANS CHERISH SMALL TOWNS AND OPEN SPACE AND STUBBORNLY RESIST HIGHDENSITY HOUSING BUT UNDEVELOPED COASTLINE AND WILDERNESS AREAS ARE CRUMBLING UNDER POPULATION PRESSURES IRONICALLY WERE IT NOT FOR THE POST1970 IMMIGRATION INPUT POPULATION IN CALIFORNIA AND OTHER HIGHGROWTH STATES WOULD SOON BE LEVELING OFF WE KNOW FROM IMMIGRATION AND NATURALIZATION SERVICE FIGURES WHERE IMMIGRANTS OF DIFFERENT ORIGINS SETTLE IF VICE PRESIDENT AL GORE AND INTERIOR SECRETARY BRUCE BABBITT ARE SERIOUS ABOUT PROTECTING AMERICA'S PHYSICAL FABRIC THEY SHOULD WORK FOR LEGISLATION REQUIRING CONGRESS TO ESTIMATE THE ENVIRONMENTAL AND PUBLIC GOODS BURDEN OF PROPOSED IMMIGRATION QUOTAS IN NO OTHER MANNER CAN WE IMPOSE DEMOGRAPHIC ACCOUNTABILITY ON OUR NATIONAL LEGISLATORS WHO SO FAR HAVE FOUND IT IMPOSSIBLE TO WITHSTAND THE IMPORTUNINGS OF INDIVIDUAL PRESSURE GROUPS A LEGISLATOR WHO CAN STRAIGHTFACEDLY TELL CALIFORNIANS NEW YORKERS FLORIDIANS AND SO FORTH THAT THEIR CARRYING CAPACITIES CAN INDEFINITELY ABSORB TENS OR EVEN HUNDREDS OF THOUSANDS OF NEW IMMIGRANTS ANNUALLY SHOULD BE CHALLENGED RESULTS FROM THE 1990 LATINO NATIONAL POLITICAL SURVEY WHICH ALSO SURVEYED NONHISPANIC WHITES WERE RECENTLY RELEASED THREEQUARTERS OF BOTH ANGLO AND MEXICANAMERICAN CITIZENS AGREED THERE WERE TOO MANY IMMIGRANTS AS DID 73 OF CUBAN NONCITIZENS AND 84 OF MEXICAN NONCITIZENS ONLY OUR POPULARLY ELECTED LEGISLATORS RESIST THE PEOPLE'S MESSAGE THAT THE TIME HAS COME FOR A DEMOGRAPHICALLY MATURE AMERICA TO NARROW IF NOT CLOSE ITS GATES IF MESSRS CLINTON AND GORE CAN ACKNOWLEDGE THIS REALITY THEY WILL BOTH REASSURE THE POPULACE THAT WASHINGTON LISTENS AND TAKE A GIANT STEP TOWARD THE ENVIRONMENTAL FUTURE TO WHICH AMERICANS ASPIRE MS BURKE A CUPERTINO CALIFBASED DEMOGRAPHER AND ECONOMIST HAS FREQUENTLY CONSULTED ON IMMIGRATION ISSUES SEE RELATED LETTER LETTERS TO THE EDITOR SPECIES PROTECTION WSJ APRIL 14 1993 9304010028 9304150136 930415 WHO'S NEWS VALLEY SYSTEMS' CHIEF RESIGNS FROM 2 POSTS WEBSTER NY EUGENE VALENTINE 56 YEARS OLD RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF VALLEY SYSTEMS INC AN INDUSTRIAL CLEANINGSERVICES CONCERN MR VALENTINE FOUNDER OF THE COMPANY SAID HE WOULD CONTINUE TO ADVISE VALLEY ON PRODUCT DEVELOPMENT AND CUSTOMER RELATIONS AS WELL AS SPEND MORE TIME ON PERSONAL INTERESTS RICHARD CHAPIS PRESIDENT SAID THE COMPANY ISN'T PLANNING TO REPLACE MR VALENTINE IN EITHER POSITION IN THE NEAR FUTURE THE COMPANY IS 70OWNED BY ATLANTA'S ROLLINS INVESTMENT FUND VALLEY LAST YEAR SAW ITS STOCK PRICE PLUNGE AND ITS CHIEF FINANCIAL OFFICER RESIGN AFTER AN AUDIT POINTED OUT PROBLEMS WITH ITS ACCOUNTING PRACTICES SHAREHOLDER SUITS STEMMING FROM THE FINDINGS WERE SETTLED EARLIER THIS MONTH 9304150135 930415 WHO'S NEWS SEARS ROEBUCK & CO SEARS ROEBUCK & CO CHICAGO THIS RETAIL AND FINANCIAL SERVICES CONCERN PROMOTED THREE PEOPLE TO VICE PRESIDENCIES IN ITS MERCHANDISE GROUP WILLIAM L SALTER 49 YEARS OLD WAS NAMED VICE PRESIDENT OF HOME APPLIANCES AND ELECTRONICS MR SALTER PREVIOUSLY WAS GENERAL MANAGER OF HOME IMPROVEMENT JERRY T POST 48 WAS NAMED VICE PRESIDENT OF HOME IMPROVEMENT HE PREVIOUSLY WAS NATIONAL BUSINESS MANAGER OF HOME IMPROVEMENT DANIEL A MIHALOVICH 48 WAS NAMED VICE PRESIDENT OF PRODUCT SERVICES HE PREVIOUSLY WAS GENERAL MANAGER OF SEARS'S MERCHANDISE DIVISION'S SOUTHEAST REGION 9304150134 930415 FINANCING BUSINESS BELL MICROPRODUCTS INC BELL MICROPRODUCTS INC SAN JOSE CALIF SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT 15 MILLION OF ITS COMMON SHARES WILL BE OFFERED TO THE PUBLIC THE COMPANY WILL SELL 12 MILLION OF THE SHARES AND EXISTING SHAREHOLDERS WILL SELL THE BALANCE THE UNDERWRITING WILL BE MANAGED BY SUTRO & CO 9304150133 930415 FINANCING BUSINESS NORTH AMERICAN MORTGAGE CO NORTH AMERICAN MORTGAGE CO SANTA ROSA CALIF SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT WILL OFFER 18 MILLION COMMON SHARES TO THE PUBLIC COMANAGERS OF THE OFFERING ARE MORGAN STANLEY & CO ALEX BROWN & SONS INC AND MABON SECURITIES CORP 9304150132 930415 MANUFACTURERS' OPTIMISM IS UP SURVEY INDICATES BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATION'S MANUFACTURERS SHOWED IMPROVED OPTIMISM IN MARCH AFTER A FEBRUARY SLIP WHILE CONSTRUCTION INDUSTRY EXECUTIVES' OPTIMISM ROSE FOR THE FOURTH STRAIGHT MONTH DUN & BRADSTREET CORP SAID MANUFACTURERS' OPTIMISM RETURNED TO THE RECORD HIGH LEVELS OF JANUARY DUN & BRADSTREET SAID WHEN THE INDUSTRIAL SENTIMENT INDEX WAS 24 THE INDEX DROPPED A POINT IN FEBRUARY AND RECOVERED THE POINT IN MARCH IN ITS MONTHLY SURVEY OF 1000 MANUFACTURERS NATIONWIDE D&B SAID MORE COMPANIES EXPECT TO ADD EMPLOYEES DURING THE COMING THREE MONTHS THAN IN FEBRUARY'S SURVEY DOUGLAS HANDLER D&B'S MANAGER OF ECONOMETRIC ANALYSIS SAID THAT MANUFACTURERS' EXPECTATIONS TO INCREASE CAPACITY DURING THE COMING THREE MONTHS WERE UNCHANGED IN FEBRUARY D&B'S INDEX OF MANUFACTURERS' EXPECTATIONS TO INCREASE CAPACITY STOOD AT 37 THE HIGHEST LEVEL SINCE MARCH 1991 IT IS INTERESTING THAT THE MORE CYCLICAL DURABLEGOODS INDUSTRIES WHICH EXPERIENCED A LONGER PERIOD OF EXPANSION ARE PLANNING TO BEEF UP PAYROLL MR HANDLER SAID THE NONDURABLE AREAS OF MANUFACTURING ARE JUST BEGINNING A PERIOD OF EXPANSION REFLECTING INCREASED CONFIDENCE IN A GRADUAL ECONOMIC RECOVERY CONSTRUCTION COMPANIES SHOWED THE GREATEST CONFIDENCE D&B REPORTED IN A SEPARATE MONTHLY SURVEY OF 200 CONSTRUCTION CONCERNS MORE FIRMS SAID THEY EXPECT ORDERS TO INCREASE THAN IN THE FEBRUARY SURVEY IN MARCH THE NEWORDERS INDEX FOR THE COMING THREE MONTHS ROSE FOUR POINTS TO 51 FROM 47 IN FEBRUARY BUT REMAINED SIX POINTS BELOW MARCH 1992'S LEVEL OF 57 EVEN IN THE FACE OF ONGOING ECONOMIC STRESS IN THE WEST AND A PARTICULARLY ROUGH WINTER CONSTRUCTION EXECUTIVES REMAIN UPBEAT MR HANDLER SAID BUT IN THE CONSTRUCTION SURVEY THE PRICE INDEX FOR THE COMING THREE MONTHS FELL TO 20 FIVE POINTS BELOW FEBRUARY AND FOUR POINTS BELOW MARCH 1992 THE RESULTS SUGGEST THAT CONTRACTORS MAY NOT BE ABLE TO CONTINUE TO PASS ALONG THE INCREASED COSTS OF LUMBER AND WOOD PRODUCTS TO THEIR CUSTOMERS MR HANDLER SAID THE INDEXES REPRESENT THE PERCENTAGE OF RESPONDENTS WHO SEE INCREASES MINUS THE PERCENTAGE INDICATING DECREASES IN VARIOUS SEGMENTS OF ECONOMIC ACTIVITY 9304150131 930415 WHO'S NEWS CONAGRA INC CONAGRA INC OMAHA NEB JAMES T SMITH THE FORMER PRESIDENT OF GERBER PRODUCTS CO WAS NAMED PRESIDENT OF THIS COMPANY'S 1 BILLION FROZENFOODS BUSINESS MR SMITH 45 YEARS OLD IS THE FOURTH PERSON TO OVERSEE THAT UNIT IN A YEAR THE BUSINESS MOST RECENTLY WAS HEADED BY ALBERT J CROSSON WHO REMAINS PRESIDENT AND CHIEF OPERATING OFFICER OF CONAGRA GROCERY PRODUCTS COS WHICH INCLUDES THE FROZENFOODS UNIT CONAGRA'S FROZEN BRANDS WHICH INCLUDE ARMOUR BANQUET HEALTHY CHOICE MORTON PATIO CHUN KING LA CHOY AND KID CUISINE HAVE BEEN BRUISED IN A PROLONGED PRICE WAR WITH OTHER LEADING MANUFACTURERS A FORMER PROCTER & GAMBLE CO EXECUTIVE IN EUROPE MR SMITH HAD BEEN AT GERBER LESS THAN TWO YEARS BEFORE SUDDENLY RESIGNING IN JANUARY CONAGRA IS THE NATION'S LARGEST INDEPENDENT FOODS MANUFACTURER 9304150130 930415 ENTERPRISE POLLUTED SITES ARE FERTILE GROUND FOR ENTREPRENEURS NEW INDUSTRY PROVIDES PURCHASERS WITH PROPERTIES' ENVIRONMENTAL HISTORIES BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL THAR'S GOLD IN THEM THAR SPILLS NO ONE WANTS TO BE SADDLED WITH THE COST OF CLEANING UP A TOXICWASTE SITE BUT THERE ARE THOUSANDS OF POLLUTED AREAS IN THE US THAT THE GOVERNMENT WANTS DECONTAMINATED AND HUNDREDS OF THOUSANDS OF UNDERGROUND FUEL TANKS THAT IT WANTS REMOVED THE NIGHTMARE OF EVERY BUSINESS AND BANK IS TO ACQUIRE SUCH A PROPERTY UNWITTINGLY ENTER THE ENTREPRENEUR ENVIRONMENTAL REGULATIONS THAT BURDEN MOST SMALL BUSINESSES ARE A GOLD MINE FOR ENTREPRENEURS WHO FIGURE OUT HOW TO EASE THE PAIN ONE INDUSTRY THAT HAS SPROUTED UP IN THE PAST FOUR YEARS THRIVES BY PROVIDING A VERY SPECIALIZED PRODUCT THE ENVIRONMENTAL HISTORIES OF PROPERTIES UP FOR SALE THESE SPELL OUT ENVIRONMENTAL PROBLEMS THAT HAVE APPEARED IN GOVERNMENT RECORDS THIS SMALL FIELD IS GROWING FAST WITH A HANDFUL OF COMPANIES RECENTLY BECOMING NATIONAL IN SCOPE AMONG THE BIGGEST IS VISTA ENVIRONMENTAL INFORMATION INC OF SAN DIEGO FOUNDED BY THREE PARTNERS IN 1989 TO OFFER ONLINE COMPUTERIZED SEARCH AND RETRIEVAL OF GOVERNMENT ENVIRONMENTAL RECORDS TODAY IT HAS 100 EMPLOYEES AND COLLECTS INFORMATION FROM MORE THAN 500 SOURCES WE MIGHT BE WHERE THE CREDITREPORTING INDUSTRY WAS IN THE LATE '60S SAYS RONALD D MILLER VISTA'S EXECUTIVE VICE PRESIDENT HE SAYS HIS COMPANY'S REVENUE LAST YEAR INCREASED 30 TO 10 MILLION UNDER FEDERAL AND STATE LAWS LENDERS CAN BE HELD LIABLE FOR CLEANUPS IF THEY ARE FOUND TO BE OWNERS OR OPERATORS OF A CONTAMINATED PROPERTY NOTES JOHN BYRNE SENIOR COUNSEL AT THE AMERICAN BANKERS ASSOCIATION EVERYONE IS SCARED TO DEATH OF TOXIC LIABILITIES SAYS WALTER HANG PRESIDENT OF TOXICS TARGETING INC AN ITHACA NY DATA COMPANY THAT BEGAN MARKETING ITS SERVICES IN SOUTHERN NEW YORK IN NOVEMBER MR HANG HOPES TO TURN A PROFIT THIS YEAR AND HAS SET A SALES TARGET OF 500000 TO 1 MILLION FULLY 88 OF BANKS RESPONDING TO A 1991 ABA SURVEY EXPRESSED CONCERN ABOUT POTENTIAL ENVIRONMENTAL LIABILITY INVOLVING LOANS AND FORECLOSURES AND 63 SAID THEY HAD REJECTED LOAN APPLICATIONS BASED ON POSSIBLE ENVIRONMENTAL EXPOSURE JUST TO BE A PRUDENT LENDER YOU HAVE TO ASSESS A PROPERTY FROM AN ENVIRONMENTAL STANDPOINT MR BYRNE SAYS MALCOLM GRIGGS VICE PRESIDENT FOR ENVIRONMENTAL POLICY AT FIRST UNION CORP IN CHARLOTTE NC SAYS THE INFORMATION CAN BE INVALUABLE YOU CAN HAVE AN APPRAISAL IN FRONT OF YOU THAT SHOWS A PROPERTY IS WORTH 1 MILLION BUT IF IT HAS SOME SORT OF ENVIRONMENTAL CONTAMINATION IT COULD BE WORTH NOTHING HE SAYS MR GRIGGS TELLS OF A LOAN APPLICATION FROM A CHEMICAL MAKER THAT WAS REJECTED AFTER AN ENVIRONMENTALDATA REPORT RAISED RED FLAGS IF WE HAD MADE THE LOAN AND THE BORROWER HAD DEFAULTED WE WOULD HAVE LOST 35 MILLION HE SAYS ENVIRONMENTAL CONSULTANTS AND ENGINEERS ARE ALSO BIG CUSTOMERS OF DATA CONCERNS WHICH PORE THROUGH FEDERAL STATE AND LOCAL GOVERNMENT DOCUMENTS TO PROVIDE A BACKGROUND CHECK OF TOXINS AT PROPERTIES THEIR SOURCES INCLUDE THE SUPERFUND DATABASE THAT SHOWS PUBLICLY REPORTED TOXICWASTE SITES THE ENVIRONMENTAL PROTECTION AGENCY IS INVESTIGATING AND THE RESOURCE CONSERVATION AND RECOVERY INFORMATION SYSTEM WHICH LISTS FACILITIES THAT TREAT STORE GENERATE DISPOSE OF OR TRANSPORT HAZARDOUS WASTE ALTHOUGH THE INFORMATION IS PUBLIC THE DATA PROVIDERS CLAIM THE ADVANTAGE OF BEING ABLE TO QUICKLY RETRIEVE LARGE AMOUNTS OF INFORMATION ON A SITE FROM HUNDREDS OF SOURCES THEIR DATABASES CAN TAKE YEARS AND COST MILLIONS OF DOLLARS TO BUILD UP BEFORE SUCH SERVICES EXISTED IF I WASN'T WORKING WITH AN OUTSIDE CONSULTANT I WOULD CALL THE FEDERAL STATE AND LOCAL PEOPLE MYSELF SAYS ALAN ARMSTRONG WHO MANAGES CORESTATES FINANCIAL CORP'S ENVIRONMENTAL RISK UNIT I CAN BUY A REPORT FOR ROUGHLY THE COST OF A COUPLE OF HOURS OF MY TIME HE SAYS THEY DO A BETTER JOB AT IT THAN I DID MYSELF SEVERAL HIGHLY PUBLICIZED COURT CASES ON LENDER LIABILITY AND A HOST OF GUIDELINES AND REQUIREMENTS FROM REGULATORS HAVE HELPED DRIVE THE MARKET FOR ENVIRONMENTAL DATA SERVICES IN THE PAST GUIDELINES AMONG COMMERCIAL LENDERS AS WELL AS STATE REQUIREMENTS VARIED ON WHAT CONSTITUTED APPROPRIATE ENVIRONMENTAL DUE DILIGENCE AND WHEN TO PERFORM IT BUT THE FEDERAL DEPOSIT INSURANCE CORP IN FEBRUARY ISSUED RECOMMENDATIONS ON ENVIRONMENTAL RISK PROGRAMS AND THE ASTM A STANDARDSETTING ORGANIZATION IN PHILADELPHIA THAT WAS FORMERLY THE AMERICAN SOCIETY FOR TESTING AND MATERIALS RECENTLY APPROVED STANDARDS THAT WILL CALL FOR AT LEAST A SEARCH OF HISTORICAL AND GOVERNMENTAL RECORDS ON A PROPERTY EVEN LARGER LENDERS WHICH OFTEN ORDER MORE COMPREHENSIVE REVIEWS COSTING AS MUCH AS 3000 MIGHT TURN TO DATA FIRMS FOR THEIR SMALLER LOANS SAYS MR ARMSTRONG OF CORESTATES AFTER ALL HE NOTES FOR A RELATIVELY SMALL SUM BANKS CAN GET AN ELECTRONIC SEARCH OF RECORDS THAT CAN REASSURE THEM ON TWO COUNTS THIS PROPERTY ISN'T ON ANYBODY'S LIST AND NOTHING AROUND IT IS ON ANYBODY'S LIST THE SERVICE IS STARTING TO TRICKLE DOWN TO THE RESIDENTIAL MARKET WHERE REPORTS TYPICALLY COST ABOUT 75 WE HAVE SEEN SOME PRELIMINARY DATA THAT SHOW IF YOUR HOUSE IS LOCATED WITHIN A QUARTER OF A MILE OF A SUPERFUND SITE BECAUSE OF THE STIGMA THE VALUE COULD BE REDUCED BY AS MUCH AS 30 SAYS PETER CASHMAN CHAIRMAN OF ENVIRONMENTAL DATA RESOURCES INC A THREEYEAROLD SOUTHPORT CONN DATA COMPANY BOLD PROPERTY INFORMATION SYSTEM INC A NEW YORK DATA COMPANY GOES BEYOND AN ENVIRONMENTAL RECORDS SEARCH AND WILL EVEN TELL PROSPECTIVE BUYERS WHETHER THERE'S A NOISY DISCO IN THE AREA AMONG THE MOST COMMON THINGS SEARCHES TURN UP ARE UNDERGROUND STORAGE TANKS BECAUSE THEY HAVE A LIFE OF ABOUT 20 YEARS SOMETHING'S GOING TO LEAK SAYS GLENN HANNA A VICE PRESIDENT AT ENVIRONMENTAL RISK INFORMATION & IMAGING SERVICES OF ALEXANDRIA VA A 24YEAROLD COMPANY THAT EXPECTS REVENUE TO TRIPLE THIS YEAR TO ABOUT 3 MILLION OTHER COMMON ITEMS INCLUDE HAZARDOUSWASTEGENERATOR PERMITS GRANTED TO SUCH BUSINESSES AS AUTOCOLLISION SHOPS AND DRY CLEANERS AND LANDFILLS THAT HAVE BEEN CLOSED AND SEALED 9304150129 930409 THE CLINTON BUDGET WHITE HOUSE ISSUES DETAILS OF PLAN TO SHIFT SPENDING FROM DEFENSE TO DOMESTIC AREAS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON THE DAY OF HIS FIRST VISIT TO THE PENTAGON PRESIDENT CLINTON RELEASED FURTHER DETAILS ON HIS PLANS TO SHIFT SPENDING FROM DEFENSE TO DOMESTIC INVESTMENT PRIORITIES IN MORE THAN 1400 PAGES THE WHITE HOUSE FLESHED OUT THE FIVEYEAR SPENDING OUTLINE IT RELEASED IN FEBRUARY WITH A FOCUS ON THE FISCAL YEAR THAT BEGINS OCT 1 AS INDICATED THEN SPENDING IN FISCAL 1994 WOULD RISE FOR ITEMS RANGING FROM RURAL DEVELOPMENT PROGRAMS TO GLOBAL WARMING RESEARCH TO HIGHCAPACITY TELECOMMUNICATIONS NETWORKS THAT WOULD LINK SCHOOLS LIBRARIES AND OTHER INFORMATION SOURCES BESIDES DEFENSE SPENDING OUTLAYS WOULD FALL FOR A VARIETY OF PROGRAMS INCLUDING NUCLEAR REACTOR DEVELOPMENT AND FEDERAL CROP INSURANCE CONGRESS HAS ALREADY MOVED BEYOND MR CLINTON'S PLAN LAST WEEK LAWMAKERS GAVE FINAL APPROVAL TO A NONBINDING BUDGET RESOLUTION THAT CALLS FOR CUTTING THE FEDERAL BUDGET DEFICIT BY 496 BILLION OVER FIVE YEARS UNDER CONGRESSIONAL SCOREKEEPING METHODS THE WHITE HOUSE PROPOSAL RELEASED YESTERDAY PUTS DOWN A MARKER FOR THE ADMINISTRATION'S PRIORITIES AS APPROPRIATIONS COMMITTEES BEGIN TO WORK ON SPECIFIC SPENDING ITEMS FOR FISCAL 1994 UNDER THE CLINTON PROPOSAL TOTAL OUTLAYS FOR FISCAL 1994 WOULD RISE TO 1515 TRILLION UP 32 FROM 1468 TRILLION IN 1993 THAT COMPARES WITH FISCAL 1994 OUTLAYS OF 1496 TRILLION UNDER THE CONGRESSIONAL RESOLUTION IT WOULD TAKE OUTLAYS OF 1527 TRILLION TO MAINTAIN THE CURRENT LEVEL OF GOVERNMENT SERVICES THE WHITE HOUSE BUDGET OFFICE SAYS REVENUES WOULD RISE TO 1251 TRILLION IN FISCAL 1994 UP 92 FROM 1146 TRILLION IN FISCAL 1993 THAT COMPARES WITH 1242 TRILLION UNDER THE CONGRESSIONAL RESOLUTION WITHOUT ANY TAX INCREASES THE ADMINISTRATION ESTIMATES THAT RECEIPTS WOULD BE 1215 TRILLION AMONG AREAS THAT WOULD GET LESS FUNDING THAN UNDER CURRENTSERVICES LEVELS ARE DEFENSE ENERGY COMMERCE AND HOUSING AND MEDICARE PROGRAMS THAT WOULD DO BETTER THAN UNDER CURRENT SERVICES INCLUDE SCIENCE AND SPACE AGRICULTURE TRANSPORTATION AND EDUCATION THE BUDGET RESOLUTION PASSED BY CONGRESS DOESN'T ALLOW FOR ALL THE SPENDING THAT MR CLINTON PROPOSED WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID THE ADMINISTRATION WOULD MEET THE CONGRESSIONAL TARGETS BUT IT ISN'T YET CLEAR WHAT AREAS WILL BE CUT OR HOW SPENDING WILL BE SHIFTED HERE ARE SOME OF THE BUDGET DETAILS THAT EMERGED THE PROPOSED 2634 BILLION IN BUDGET AUTHORITY FOR DEFENSE IN FISCAL 1994 CONTINUES THE EIGHTYEAR TREND OF CUTTING DEFENSE SPENDING BUT INCREASES ARE SLATED FOR A FEW AREAS MOST NOTABLY SPENDING ON THE ENVIRONMENTAL CLEANUP OF MILITARY BASES WOULD INCREASE TO 231 BILLION FROM 119 BILLION IN THE CURRENT FISCAL YEAR AND SPENDING FOR THE OPERATIONS OF THE OFFICE OF THE SECRETARY OF DEFENSE IS SCHEDULED TO SHOOT TO 4359 MILLION FROM 3417 MILLION THAT INCREASE APPARENTLY REFLECTS DEFENSE SECRETARY LES ASPIN'S INTENTION TO CREATE A POWERFUL OFFICE WITH AN ANALYTICAL CAPABILITY EQUAL TO THAT OF THE JOINT CHIEFS OF STAFF WHICH HAS A STAFF OF ABOUT 1400 PEOPLE LEAVING THE PENTAGON AFTER A TWOHOUR MEETING WITH THE JOINT CHIEFS OF STAFF AND MR ASPIN PRESIDENT CLINTON SAID HE DIDN'T EXPECT HIS PLANS FOR DEFENSE BUDGET CUTS TO CHANGE IN THE COMING YEARS SEEMING TO REJECT CALLS FOR LARGER CUTS IN THE FUTURE HE SAID WE'RE BEING ASKED TO DO MORE EVERY DAY YOU KNOW WITH FEWER PEOPLE MR CLINTON RAISED WITH THE CHIEFS THE ISSUE OF THE C17 MILITARY CARGO TRANSPORT A DECISION ON THAT TROUBLED PLANE WHICH IS BEING BUILT BY MCDONNELL DOUGLAS CORP WILL BE MADE THIS SUMMER A SENIOR DEFENSE OFFICIAL SAID SOME CHANGE IN THE PROGRAM IS EXPECTED WITH THE MOST LIKELY BEING A REVISION OF THE CONTRACT PERHAPS TO TRANSFER MANAGEMENT OF THE PROGRAM TO LOCKHEED CORP OR BOEING CO BUT LABOR UNIONS MAY VIGOROUSLY OPPOSE ANY SUCH MOVE THE ADMINISTRATION HAS MADE TWO MAJOR CHANGES IN THE PROPOSED BUDGET FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SINCE FEBRUARY INITIALLY THE ADMINISTRATION PROPOSED ROLLING NEW CONSTRUCTION OF PUBLIC HOUSING FOR THE ELDERLY AND THE DISABLED INTO THE HOME AFFORDABLEHOUSING PROGRAM THE NEW CATEGORY WOULD HAVE BEEN FUNDED AT 22 BILLION IN FISCAL 1994 BUT HUD SECRETARY HENRY CISNEROS PERSUADED BUDGET OFFICIALS TO KEEP THE PROGRAMS SEPARATE UNDER PLANS RELEASED YESTERDAY HOME IS SLATED FOR 16 BILLION NEXT YEAR UP FROM 1 BILLION THIS YEAR WHILE THE OTHER TWO PROGRAMS WOULD BE FUNDED AT THEIR CURRENTYEAR LEVELS IN ADDITION BUDGET OFFICIALS ORIGINALLY WANTED TO ELIMINATE PROGRAMS DESIGNED TO PROMOTE HOME OWNERSHIP OF PUBLIC HOUSING AND OTHER GOVERNMENTOWNED UNITS THE PROGRAM WAS A FAVORITE OF FORMER HUD SECRETARY JACK KEMP BUT OFFICIALS DECIDED TO REQUEST SOME FUNDING 1092 MILLION IN THE DOCUMENTS RELEASED YESTERDAY THAT WOULD BE A SHARP DECLINE FROM THIS YEAR BUT STILL ALLOW PARTICIPANTS IN THE PROGRAM TO FINISH THE PROCESS OVERALL HUD OFFICIALS SAID NEW AND PREVIOUSLY COMMITTED SPENDING WILL RESULT IN TOTAL HUD OUTLAYS OF 289 BILLION AN INCREASE OF 29 BILLION FROM THE 1993 LEVEL THE FEDERAL COMMUNICATIONS COMMISSION WOULD PICK UP AN EXTRA 12 MILLION MAINLY TO ADD STAFF TO ENFORCE LAST YEAR'S CABLETELEVISION REREGULATION LAW BRINGING THE AGENCY'S PROJECTED 1993 BUDGET TO 1455 MILLION THE AGENCY HAS SAID IT NEEDS THE MONEY TO DRAFT REGULATIONS AND TO HANDLE SOME 25000 CABLERELATED COMPLAINTS THAT ARE EXPECTED TO BE FILED THIS YEAR THE COMMERCE DEPARTMENT'S NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION WOULD GET 566 MILLION NEXT YEAR INCLUDING 313 MILLION TO HELP PROMOTE THE DEVELOPMENT OF HIGHCAPACITY TELECOMMUNICATIONS NETWORKS IN ADDITION THE ADMINISTRATION ENVISIONS SETTING ASIDE 51 MILLION FOR GRANTS FOR PLANNING AND CONSTRUCTION OF A NATIONAL INFORMATION SUPERHIGHWAY THE BUDGET OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION CARRIES OUT A MAJOR CLINTON ADMINISTRATION EFFORT TO PARE SUPEREXPENSIVE SPACE MISSIONS TO FREE UP MONEY FOR SMALLER PROJECTS OF MORE DIRECT BENEFIT TO INDUSTRY AND THE ECONOMY ALTHOUGH THE PRESIDENT IS PROPOSING TO WHACK 11 BILLION TO 15 BILLION OFF THE SPACE STATION'S CURRENT PRICE TAG OF 31 BILLION HE IS RECOMMENDING TO INCREASE NASA'S OVERALL OUTLAYS TO 147 BILLION IN FISCAL 1994 FROM 141 BILLION CURRENTLY THE US CIVIL AVIATION INDUSTRY IS ONE OF THE BIGGEST WINNERS CIVIL AERONAUTICS RESEARCH IS SLATED FOR A 55 INCREASE BY 1998 FOR NEXT FISCAL YEAR MR CLINTON IS SEEKING 101 MILLION COMPARED WITH 12 MILLION NOW TO IMPROVE DESIGNS FOR THE NEXT GENERATION OF SUBSONIC COMMERCIAL JETS AN 80 MILLION INCREASE TO 187 MILLION TO DEVELOP TECHNOLOGIES FOR A SUPERSONIC AIRLINER TO SUCCEED THE EUROPEANBUILT CONCORDE 80 MILLION TO RESUME WORK ON AN AEROSPACE PLANE AND 200 MILLION TO MODERNIZE AND BUILD WIND TUNNELS THAT INDUSTRY COULD USE FOR TESTING NEW DESIGNS NASA STILL WANTS TO FLY EIGHT SHUTTLE MISSIONS A YEAR BUT NASA ADMINISTRATOR DANIEL GOLDIN SAID THE SHUTTLE'S BUDGET WILL BE PARED 25 OVER THE NEXT FIVE YEARS THROUGH EFFICIENCIES FINAL FIGURES FOR THE PROPOSED SPACE STATION THE ORBITING LABORATORY THAT MR CLINTON ORDERED DRASTICALLY SCALED DOWN WON'T BE KNOWN UNTIL A NEW DESIGN IS PICKED IN JUNE BUT THE WHITE HOUSE HAS LIMITED NASA TO SPENDING BETWEEN 5 BILLION TO 9 BILLION TO FINISH THE PROJECT THE CLINTON ADMINISTRATION THREW ITS WEIGHT BEHIND THE FEDERAL JUDICIARY'S REQUEST THAT CONGRESS APPROVE 984 MILLION IN SUPPLEMENTAL FISCAL 1993 FUNDING FOR SUCH THINGS AS DEFENSE LAWYERS FOR THE INDIGENT AND FEES FOR JURORS SOME FEDERAL JUDGES HAVE THREATENED TO STOP SCHEDULING CIVIL TRIALS IF THE EMERGENCY MONEY FOR PAYING JURORS ISN'T APPROVED SOON THE WHITE HOUSE URGED CONGRESS TO APPROVE 31 BILLION IN SPENDING FOR THE FEDERAL JUDICIARY IN FISCAL 1994 THAT WOULD BE A 19 INCREASE OVER ESTIMATED SPENDING FOR THIS YEAR BUT DAVID SELLERS A SPOKESMAN FOR THE FEDERAL JUDICIARY SAID THE WHITE HOUSE REQUEST FOR 1994 IS SOMEWHAT INFLATED BECAUSE IT INCLUDES FEES THAT THE COURTS THEMSELVES IMPOSE ON LITIGANTS SPENDING FOR THE JUSTICE DEPARTMENT WOULD DECLINE TO 103 BILLION FROM 106 BILLION THE ADMINISTRATION PROPOSED A CUT OF 183 MILLION OR 28 IN GRANTS TO STATE AND LOCAL LAW ENFORCEMENT AGENCIES WHITE HOUSE AND JUSTICE DEPARTMENT BUDGET DOCUMENTS DIDN'T EXPLAIN HOW THIS CUT RELATES TO THE PRESIDENT'S PLEDGE TO HELP STATES AND CITIES PUT 100000 ADDITIONAL POLICE ON THE BEAT THE PRESIDENT RECOMMENDED THAT CONGRESS MAKE AVAILABLE 167 MILLION IN FISCAL 1993 TO IMPROVE CRIMINAL RECORDKEEPING IN CONNECTION WITH PROPOSED GUNCONTROL LEGISLATION KNOWN AS THE BRADY BILL THE ADMINISTRATION ALSO PROPOSED TO CUT SPENDING FOR THE IMMIGRATION AND NATURALIZATION SERVICE AND INCREASE FUNDING FOR THE DRUG ENFORCEMENT ADMINISTRATION TO THE CHAGRIN OF ENVIRONMENTAL GROUPS THE ENVIRONMENTAL PROTECTION AGENCY'S OPERATIONAL BUDGET WOULD BE LARGELY UNCHANGED FROM FISCAL 1993 THE ADMINISTRATION HOWEVER IS CALLING FOR SIGNIFICANT INCREASES IN SPENDING ON WASTEWATER TREATMENT AND OTHER CLEANWATER PROGRAMS IT'S ALSO PROPOSING MODEST INCREASES IN PROGRAMS TO PROMOTE ENERGY EFFICIENCY INCREASE FISHERY PRODUCTIVITY AND SUPPORT LOCAL AIR PESTICIDE AND HAZARDOUSWASTE CLEANUP EFFORTS THESE INCREASES ARE TO BE FINANCED BY STREAMLINING THE SUPERFUND HAZARDOUSWASTE PROGRAM SEPARATELY MR CLINTON PROPOSES SPENDING 15 BILLION TO STUDY GLOBAL WARMING IN FISCAL 1994 A 13 JUMP THE ADMINISTRATION ESTIMATED THAT ITS NEW DIRECT STUDENT LOAN PROGRAM WOULD SAVE 42 BILLION IN OUTLAYS THROUGH FISCAL 1998 COMPARED WITH THE CURRENT SYSTEM OF GOVERNMENTGUARANTEED LOANS UNDER THE PLAN WHICH LETS COLLEGE STUDENTS BORROW MONEY DIRECTLY FROM THE FEDERAL GOVERNMENT INTEREST RATES ON STUDENT LOANS WOULD BE REDUCED BY 06 PERCENTAGE POINT DURING THE 19971998 ACADEMIC YEAR THE PLAN CALLS FOR A 6 INCREASE IN DISCRETIONARY SPENDING FOR THE EDUCATION DEPARTMENT WITH INCREASES PROPOSED FOR SEVERAL EARLY CHILDHOOD EDUCATION PROGRAMS AND THE ADMINISTRATION'S COMPREHENSIVE SCHOOLREFORM PACKAGE BUT THE BUDGET ALSO PROPOSES REDUCING MORE THAN 100 PROGRAMS ELIMINATING 24 ENTIRELY INCLUDING A 35 MILLION ITEM FOR CONSUMER AND HOMEMAKING EDUCATION ADMINISTRATION OFFICIALS SAID THEY WERE PESSIMISTIC THAT CONGRESS WOULD CUT SOME OF THESE PROGRAMS THE HOMEMAKING PROGRAM STARTED IN 1917 REMAINS POPULAR THEY SAID AND A PROGRAM THAT GIVES EXTRA MONEY TO SCHOOL DISTRICTS WITH A HIGH CONCENTRATION OF FEDERAL WORKERS HAS RESISTED BUDGET CUTTERS' EFFORTS TO ELIMINATE IT SINCE THE TRUMAN ERA THE AGRICULTURE DEPARTMENT BUDGET WOULD PROVIDE SIGNIFICANT SPENDING INCREASES FROM FISCAL 1993 FOR THE WETLANDS RESERVE PROGRAM UNDER WHICH FARMERS ARE PAID TO TAKE WETLANDS OUT OF PRODUCTION FOR AT LEAST 30 YEARS AND THE CONSERVATION RESERVE PROGRAM IN WHICH FARMERS ARE PAID TO TAKE HIGHLY ERODIBLE LAND OUT OF PRODUCTION FOR 10 TO 15 YEARS THE INCREASE WOULD PUT BOTH PROGRAMS ON SCHEDULES SET IN THE 1990 FARM BILL THE INTERIOR DEPARTMENT'S BUDGET INCLUDES A SHARPENED FOCUS ON ENDANGERED SPECIES IT CALLS FOR ADDITIONAL SPENDING TO ATTACK THE BACKLOG OF CASES INVOLVING SPECIES ELIGIBLE FOR LISTING AS THREATENED OR ENDANGERED IT ALSO WOULD PROVIDE MORE RESEARCH TO SUPPORT INTERIOR SECRETARY BRUCE BABBITT'S EFFORTS TO LOOK AT ENTIRE HABITATS RATHER THAN SINGLE SPECIES AND TO DEAL WITH THREATENED SPECIES BEFORE THEIR SITUATION BECOMES CRITICAL AN INCREASE IN SPENDING FOR RESTORING NATIONAL PARKS WOULD ALLOW FOR SPENDING AT EVERY PARK THE BUDGET HOWEVER WOULD REDUCE FUNDS FOR ACQUIRING PARKLAND 9304150128 930415 MEDICINE CRITICS SEE SELFINTEREST IN LILLY'S FUNDING OF ADS TELLING THE DEPRESSED TO GET HELP BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL A MAJOR ADVERTISING CAMPAIGN AIMED AT PEOPLE SUFFERING FROM DEPRESSION HAS COME UNDER FIRE FROM PSYCHOLOGISTS AND OTHERS WHO SAY IT IS DESIGNED TO INCREASE THE USE OF ANTIDEPRESSANT MEDICATION THE CRITICISM HAS BEEN FUELED BY ELI LILLY & CO'S SPONSORSHIP OF THE CAMPAIGN LILLY MAKES AND SELLS PROZAC THE WORLD'S TOPSELLING ANTIDEPRESSANT DRUG WITH EXPECTED SALES OF 12 BILLION THIS YEAR THE NATIONAL MENTAL HEALTH ASSOCIATION A NONPROFIT EDUCATIONAL GROUP IS OFFICIALLY RESPONSIBLE FOR THE THREEWEEK BLITZ OF PRINT AND BROADCAST ADVERTISING BUT THE CAMPAIGN'S COST OF 3 MILLION TO 4 MILLION IS BEING PAID BY LILLY ACCORDING TO THE ASSOCIATION IN ADDITION THE COMPANY GAVE THE ALEXANDRIA VA ORGANIZATION 500000 TO RUN A NINEMONTH PUBLIC EDUCATION PROGRAM DESIGNED THROUGH THE COOPERATION OF MORE THAN 400 LOCAL MENTAL HEALTH ASSOCIATIONS TO IDENTIFY PEOPLE WHO AREN'T BEING TREATED FOR DEPRESSION AND ENCOURAGE THEM TO SEEK TREATMENT THE CAMPAIGN IS THE MOST RECENT TWIST IN A CONTROVERSIAL TREND IN WHICH PHARMACEUTICAL COMPANIES USE CONSUMER ADVERTISING TO DRIVE SALES OF PRESCRIPTION MEDICINES THE AD PROGRAM IS ALSO STIRRING A LONGSTANDING RIFT BETWEEN PSYCHOLOGISTS AND PHYSICIANS OVER WHO SHOULD TREAT DEPRESSED PATIENTS AND THE ROLE MEDICATION SHOULD PLAY IN THAT TREATMENT CENTRAL TO THE DISPUTE IS ADVERTISING THAT URGES PEOPLE WHO THINK THEY ARE DEPRESSED TO SEE THEIR DOCTOR THE AMERICAN PSYCHOLOGICAL ASSOCIATION SAYS IT DECLINED AN INVITATION TO COSPONSOR THE CAMPAIGN BECAUSE THE MESSAGE MAY BE MISLEADING OR CONFUSING THE GROUP WHOSE MEMBERS GENERALLY CAN'T PRESCRIBE MEDICATION SAYS THE ADVERTISEMENTS WILL PROMPT PEOPLE TO SEE THEIR PRIMARYCARE PHYSICIANS WHO ARE LIKELY TO RELY SOLELY ON MEDICATION TO TREAT DEPRESSION THE CAMPAIGN WAS LAUNCHED EARLIER THIS MONTH WITH ADS IN SUCH HIGHPROFILE MEDIA AS THE NEW YORK TIMES PARADE MAGAZINE AND CBSTV'S 60 MINUTES THEY ARE COINCIDING WITH THE RELEASE OF A FEDERAL REPORT ENCOURAGING GREATER DIAGNOSIS AND TREATMENT OF DEPRESSION THE CAMPAIGN IS ANOTHER EXAMPLE OF PHARMACEUTICAL COMPANIES TRYING TO INFLUENCE PATIENTS' GROUPS THROUGH FINANCIAL SUPPORT SAID SIDNEY WOLFE WHO HEADS THE PUBLIC CITIZEN HEALTH RESEARCH GROUP A CONSUMER ADVOCACY GROUP THE MONEY IS GIVEN TO TRY TO CURRY FAVOR WITH GROUPS SO THEY DON'T RESIST OR OPPOSE THINGS HAPPENING WITH A DRUG OR THEY BECOME DE FACTO ADVOCATES FOR A DRUG HE SAID AN ELI LILLY SPOKESMAN SAID THE COMPANY IS SPONSORING THE PROGRAM AS A PUBLIC SERVICE AND DENIED THAT IT WAS BEING USED TO INCREASE PROZAC SALES IT ISN'T A CAMPAIGN TO PROMOTE PROZAC IT'S A CAMPAIGN TO PROMOTE AWARENESS HE SAID HE ADDED THAT FIVE DOZEN COMMUNITY HEALTH AND PATIENT GROUPS HAVE SIGNED ON TO PARTICIPATE IN THE GRASSROOTS EDUCATION PORTION OF THE CAMPAIGN EXCEPT FOR THE PSYCHOLOGISTS THE SPOKESMAN SAID WE ARE UNAWARE OF ANY OTHER GROUP THAT HAS RAISED CONCERNS THE ADVERTISING CAMPAIGN IS EXPECTED TO REACH 93 OF AMERICAN ADULTS ACCORDING TO THE MENTAL HEALTH ASSOCIATION THE PRINT ADVERTISEMENT TELLS READERS HOW TO OBTAIN A FREE BOOKLET THAT INCLUDES INFORMATION ABOUT PSYCHOTHERAPIES ALONG WITH DESCRIPTIONS OF TREATMENT WITH MEDICATION BARRY RAUT THE ASSOCIATION'S CHAIRMAN SAID WE STRONGLY URGE THAT THEY CONSIDER PSYCHOTHERAPY AS WELL AS MEDICAL ATTENTION BECAUSE WE KNOW FROM RESEARCH THAT THE COMBINATION OF PSYCHOTHERAPY AND MEDICATION IS THE MOST EFFECTIVE COMBINATION FOR TREATING THE ILLNESS HE SAID THE AMERICAN PSYCHIATRIC ASSOCIATION SUPPORTS THE CAMPAIGN AND THE RECOMMENDATION TO CONSULT A DOCTOR FIRST SAID A SPOKESMAN A MEDICAL EVALUATION SHOULD BE PART OF ANY DIAGNOSTIC WORKUP OF A PATIENT COMPLAINING OF DEPRESSION HE SAID TO DETERMINE WHETHER THE SYMPTOMS ARE CAUSED BY A MEDICAL PROBLEM SUCH AS A THYROID OR NEUROLOGICAL DISORDER BUT PSYCHOLOGISTS WHO AREN'T MEDICAL DOCTORS ARGUE THAT THE EMPHASIS ON DEPRESSION AS A MEDICAL CONDITION ENCOURAGES THE USE OF MEDICATION AND COULD LEAD TO OVERUSE SOME PEOPLE BELIEVE OVERUSE OF PROZAC IS ALREADY HAPPENING RONALD CANN SENIOR VICE PRESIDENT OF MEDICAL AFFAIRS AT CMG HEALTH IN OWINGS MILLS MD WHICH MANAGES MENTAL HEALTH CARE PLANS FOR HEALTH MAINTENANCE ORGANIZATIONS SAID THAT PROZAC IS SIGNIFICANTLY OVERPRESCRIBED AND LIKENED IT TO VALIUM A TRANQUILIZER THAT WAS HEAVILY PRESCRIBED IN THE 1970S PROZAC IS FADDISHLY PRESCRIBED IT'S BEING PRESCRIBED AS THE FIRST DRUG OF CHOICE AND IT'S AN EXPENSIVE AND NOT ALWAYS APPROPRIATE FIRST DRUG OF CHOICE HE SAID ADDING THAT HE BELIEVES THE DRUG IS PROBABLY ONLY APPROPRIATE FOR ABOUT ONETHIRD OF THE PEOPLE FOR WHOM IT IS PRESCRIBED PROZAC SALES HAVE RISEN RAPIDLY SINCE ITS INTRODUCTION IN 1988 DESPITE CONTROVERSIAL CLAIMS BY SOME PATIENTS THAT THE DRUG CAUSES SUICIDAL THOUGHTS THE DRUG IS ALSO FACING COMPETITION FROM PFIZER INC'S ZOLOFT AND SMITHKLINE BEECHAM PLC'S RECENTLY INTRODUCED PAXIL THE NATIONAL MENTAL HEALTH ASSOCIATION DOESN'T ENDORSE ANY PARTICULAR PRODUCT A SPOKESWOMAN SAYS WHICH IS THE REASON PROZAC ISN'T MENTIONED IN THE ADS HOWEVER ELI LILLY IS MENTIONED AS PAYING FOR THE ADVERTISEMENT THAT MENTION OF THE COMPANY'S NAME IN THE ADVERTISEMENTS REMINDS PEOPLE THAT ELI LILLY MAKES AN ANTIDEPRESSANT DR WOLFE SAID IF LILLY IS DOING THIS OUT OF THE GOODNESS OF ITS HEART WHY DOES IT HAVE TO HAVE ITS NAME THERE HE ASKED THEY DON'T WANT IT TO BE ANONYMOUS AND THAT'S WHAT THE PROBLEM IS DEFENDING THE INDUSTRY'S PRACTICE OF DONATING MONEY TO PATIENT GROUPS' PROGRAMS A LILLY SPOKESMAN SAID THESE PROGRAMS SAVE LIVES AND AREN'T PROMOTING ANY ONE SPECIFIC PRODUCT A SPOKESWOMAN FOR THE MENTAL HEALTH ASSOCIATION ALSO DEFENDED LILLY'S FINANCIAL SUPPORT SAYING IT INCREASED THE GROUP'S EFFECTIVENESS BY GETTING ITS ADVERTISING MESSAGES OUT TO MORE PEOPLE USUALLY THE GROUP IS ONLY ABLE TO GET PUBLIC SERVICE MESSAGES ON TELEVISION AT 330 IN THE MORNING SHE SAID WE ARE WORKING IN PARTNERSHIP WITH CORPORATE AMERICA TO DISSEMINATE MESSAGES OF HOPE AND HELP TO THE AMERICAN PEOPLE 9304150127 930415 PEPPERAND SALT WHEN IT COMES TO AFTERNOON NAPS ARE QUITE UNRELATED 9304150126 930415 PRUDENTIAL IN TALKS ON POSSIBLE SALE OF PARTNERSHIPS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC SAID IT HAS ENTERED DISCUSSIONS WITH SEVERAL PARTIES TO SELL NEARLY THREE DOZEN ENERGY PARTNERSHIPS THAT SOURED IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION YESTERDAY THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT SAID THE NEGOTIATIONS CONCERN THE POSSIBILITY OF A BUSINESS COMBINATION TRANSACTION INVOLVING THE SALE OF THE PARTNERSHIPS PRUDENTIAL SECURITIES THE NATION'S FOURTHLARGEST BROKERAGE FIRM IS TRYING TO ARRANGE A SALE OF THE ENERGY PARTNERSHIPS IN A BID TO RAISE CASH TO PAY INVESTORS WHO HAVE SUED THE FIRM AS PREVIOUSLY REPORTED PRUDENTIAL SECURITIES PLANS TO WITHDRAW A 100 MILLION SETTLEMENT PROPOSAL IN A CLASSACTION CASE BROUGHT BY 130000 INVESTORS PEOPLE FAMILIAR WITH THE MATTER SAID A SALE OF THE PARTNERSHIPS COULD MEAN MORE MONEY WOULD BE AVAILABLE TO BE DOLED OUT TO INVESTORS ACCORDING TO LAWYERS IN THE CASE IN ITS FILING PRUDENTIAL SECURITIES DIDN'T IDENTIFY THE SUITORS AND A SPOKESMAN FOR THE BROKERAGE FIRM DECLINED TO COMMENT BUT AMONG THE PROBABLE BIDDERS IS PARKER & PARSLEY PETROLEUM CO A MIDLAND TEXAS INDEPENDENT OIL AND GAS COMPANY THE PEOPLE FAMILIAR WITH THE MATTER SAID HERBERT WILLIAMSON VICE CHAIRMAN OF PARKER & PARSLEY COULDN'T BE REACHED LAST NIGHT FOR COMMENT MEANWHILE THE FILING DISCLOSED THAT GEORGE B KAISER A TULSA OKLA OIL MAN PULLED OUT OF NEGOTIATIONS TO BUY 31 OF THE 35 ENERGY PARTNERSHIPS EARLIER THIS MONTH PRUDENTIAL SECURITIES SPURNED MR KAISER'S TENDER OFFERS SAID TO BE VALUED AT ABOUT 175 MILLION AND SAID IT WOULD SEEK BETTER OFFERS THE FILING SAID PRUDENTIAL SECURITIES ASKED MR KAISER'S FIRM TO AGREE TO DELAY THE CLOSING OF ITS TENDER OFFERS IN ORDER TO AFFORD TIME TO CONDUCT AN ORDERLY SALES PROCESS THE FOLLOWING DAY THE KAISER FIRM INFORMED PRUDENTIAL SECURITIES' REPRESENTATIVES THAT KAISER DID NOT WISH TO ENTER INTO NEGOTIATIONS THE FILING SAID 9304150125 930415 HOW TO COMPARE VARIABLE ANNUITIES ON THE BASIS OF PERFORMANCE AND COST BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL VARIABLE ANNUITIES AREN'T AS COMPLICATED AS PARTICLE PHYSICS THEY JUST SEEM THAT WAY AT FIRST LIKE ANY OTHER INVESTMENT VEHICLE THEY CAN BE COMPARED ON THE BASIS OF PERFORMANCE AND COST START BY LOOKING AT THE PERFORMANCE OF THE VARIOUS SUBACCOUNTS OR FUNDS AVAILABLE IN A PARTICULAR CONTRACT AND COMPARE THEM WITH THE AVERAGE RETURNS FOR THEIR INVESTMENT CATEGORY FOR EXAMPLE DURING THE PAST THREE YEARS BALANCED FUNDS RETURNED AN AVERAGE OF 1168 ANNUALLY ACCORDING TO MORNINGSTAR INC IN COMPARISON THE BALANCED FUND IN AMERICAN EXPRESS CO UNIT IDS LIFE INSURANCE CO'S FLEXIBLE ANNUITY RETURNED 1353 MAKING IT ABOVE AVERAGE THE MOST PROMISING CONTRACTS ARE THOSE IN WHICH MOST OF THE SUBACCOUNTS HAVE ABOVEAVERAGE PERFORMANCE IN THEIR CATEGORIES OVER TIME MORNINGSTAR LOOKED AT HOW MANY OF THE SUBACCOUNTS IN EACH VARIABLEANNUITY CONTRACT HAD ABOVEAVERAGE PERFORMANCE FOR THE THREE YEARS ENDED THIS MARCH 31 THIS EXERCISE TURNED UP SOME STANDOUTS ALL OF THE FUNDS IN MASSACHUSETTS MUTUAL LIFE INSURANCECO'S FLEX V ARE IN THE TOP THIRD OF THEIR FUND GROUPS OTHER TOPPERFORMING CONTRACTS INCLUDE CONNECTICUT MUTUAL LIFE INSURANCE CO'S PANORAMA AND IDS'S FLEXIBLE ANNUITY THE SURVEY LEAVES OUT SUBACCOUNTS THAT ARE YOUNGER THAN THREE YEARS OLD ANOTHER IMPORTANT AREA TO EXAMINE IS COSTS ANNUAL COSTS ADD UP TO AN AVERAGE OF 225 AND CONSIST OF TWO BASIC PARTS ONE IS THE ANNUAL CONTRACT CHARGE FOR THE VARIABLE ANNUITY WHICH AVERAGES 125 ACCORDING TO MORNINGSTAR HOWEVER MOST OF THE NEWER CONTRACTS CHARGE 140 ANNUALLY THE MOST EXPENSIVE CONTRACT CHARGE IS FOR ANCHOR NATIONAL LIFE INSURANCE CO'S POLARIS AT 152 ANNUALLY IN CONTRAST ONE OF THE LEAST EXPENSIVE AT 055 IS VANGUARD GROUP'S VARIABLE ANNUITY WHICH IS OFFERED THOUGH NATIONAL HOME LIFE ASSURANCE CO IT'S IMPORTANT TO CONSIDER THE CONTRACT CHARGE SINCE IT WILL OFFSET OR EVEN EXCEED THE BENEFITS OF TAX DEFERRAL IN THE FIRST DECADE OR SO THE CONTRACT CHARGE GOES FOR A SMALL LIFE INSURANCE COMPONENT WHICH INSURES THAT INVESTORS' HEIRS WILL GET AT LEAST THE AMOUNT THE INVESTORS PUT INTO THE CONTRACT IF THEY DIE EARLY BUT THE HIGHER THE CONTRACT CHARGE THE LONGER IT WILL TAKE FOR THE BENEFIT OF TAX DEFERRAL TO KICK IN THE SECOND COST THAT INVESTORS SHOULD EXAMINE IS THAT OF THE STOCK AND BOND SUBACCOUNTS LIKE MUTUAL FUNDS THESE HAVE ANNUAL EXPENSES THAT PAY FOR THE MANAGEMENT OF THE MONEY AND THE ROUTINE EXPENSES OF RUNNING THE PORTFOLIO THESE TEND TO BE SLIGHTLY LOWER THAN AT COMPARABLE MUTUAL FUNDS BECAUSE MONEY DOESN'T FLOW INTO AND OUT OF VARIABLE ANNUITIES AS MUCH AS AT FUNDS KNOWING WHAT THE AVERAGE IS CAN HELP YOU MAKE AN INFORMED JUDGMENT ABOUT THE COSTS OF THE SUBACCOUNTS IN YOUR ANNUITY OR THE ONE YOU ARE CONSIDERING THE FINAL FEE INVESTORS NEED TO CONSIDER IS THE BACKEND LOAD WHICH MOST COMPANIES CALL A SURRENDER PENALTY THIS IS WHAT INVESTORS PAY IF THEY TAKE THEIR MONEY OUT BEFORE A CERTAIN NUMBER OF YEARS HAVE PASSED THE AVERAGE IS 7 IN THE FIRST YEAR DECLINING BY ONE PERCENTAGE POINT A YEAR OVER SEVEN YEARS OR SO IN MOST CONTRACTS INCLUDING THOSE IN RETIREMENT PLANS THE SURRENDER CHARGE CLOCK STARTS EACH TIME AN INVESTOR PUTS MONEY IN IF A CONTRACT LOOKS EXPENSIVE FIND OUT IF THERE'S A GOOD REASON THE HIGHERTHANAVERAGE CONTRACT CHARGE FOR AMERICAN SKANDIA LIFE ASSURANCE CORP'S ADVISOR'S PLAN ANNUITY GOES TO PAY FOR EXTRA DEATH BENEFIT IF THE ANNUITY HOLDER DIES PREMATURELY HEIRS RECEIVE A MINIMUM OF THE INVESTOR'S CONTRIBUTIONS PLUS 5 AND EQUITABLE LIFE INSURANCE CO'S EQUIVEST LOOKS EXPENSIVE AT FIRST BUT IT CAPS ITS TOTAL COSTS AT 175 IT'S IMPORTANT TO FIND A SOLID PERFORMER WITH REASONABLE FEES BECAUSE INVESTORS WHO TAKE THEIR MONEY OUT EARLY WILL USUALLY BE HIT WITH STIFF SURRENDER CHARGES IN ADDITION EARNINGS ON MONEY WITHDRAWN BEFORE AGE 59 1/2 ARE SUBJECT TO A 10 TAX PENALTY AS WELL AS REGULAR INCOME TAXES EVALUATING THE PERFORMANCE OF VARIABLE ANUUITIES ACCOUNTS WITH TRACK RECORDS OF THREE OR MORE YEARS 9304150124 930415 POLITICS & POLICY RESENTFUL OF NEGATIVE COVERAGE CLINTON SPURNS THE MEDIA BUT HE MAY NEED TO WOO THEM BACK BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BARELY A WEEK INTO HIS ADMINISTRATION PRESIDENT CLINTON GATHERED THE ENTIRE WHITE HOUSE STAFF INTO THE ELEGANT EAST ROOM FOR A PEP TALK AND A WARNING DON'T LEAK TO THE PRESS AMID EXHORTATIONS TO EXCEL IN OTHER WAYS MR CLINTON ADMONISHED HIS AIDES AGAINST UNAUTHORIZED DEALINGS WITH THE MEDIA WE DON'T WANT TO GET CAUGHT UP IN THE SAME OLD WASHINGTON GAMES THAT PARALYZED PAST ADMINISTRATIONS HE EMPHASIZED REFERRING TO DAMAGE THAT HAS BEEN CAUSED BY UNWANTED DISCLOSURES IN THE PAST THE INCIDENT ISN'T ISOLATED CLINTON COMMUNICATIONS STAFFERS BEAR MANY WOUNDS FROM MR CLINTON'S TIRADES OVER PRINTED OR BROADCAST STORIES THAT CONFLICTED WITH HIS PREFERRED MESSAGE HE IS KNOWN TO BECOME ESPECIALLY IRATE WHEN AIDES DISCUSS IN PUBLIC WHAT HE CONSIDERS TO BE HIS PRIVATE THOUGHTS OR ACTIONS IN SHORT BILL CLINTON DISTRUSTS AND IN MANY WAYS DISLIKES THE WASHINGTON PRESS PROBABLY NOT SINCE RICHARD NIXON HAS A PRESIDENT COME INTO OFFICE WITH SO MUCH ANTAGONISM TOWARD THE MEDIA THAT PROVIDE THE AMERICAN PEOPLE WITH THE BULK OF WHAT THEY KNOW ABOUT HIM HE'S PERSONALLY CONTEMPTUOUS OF THE PRESS AND DEEPLY RESENTFUL OF HIS TREATMENT AT THEIR HANDS CONCLUDES LARRY SABATO A POLITICAL SCIENCE PROFESSOR AT THE UNIVERSITY OF VIRGINIA AND A STUDENT OF PRESIDENTS' PRESS RELATIONS ONE INDICATION IS THAT IN HIS FIRST 12 WEEKS IN OFFICE MR CLINTON HAS HELD ONLY ONE FORMAL NEWS CONFERENCE IN WHICH HE ALONE TOOK QUESTIONS FROM THE WASHINGTON PRESS CORPS THAT'S THE FEWEST OF ANY PRESIDENT GOING ALL THE WAY BACK TO MR NIXON AND INCLUDING PRESIDENT REAGAN WHO WAS SHOT IN THE MIDST OF THIS PERIOD IN 1981 AND EVEN IN HIS SINGLE ENCOUNTER MR CLINTON WAS ANGERED THAT THE QUESTION DOMINATING THE NEWS WAS ABOUT HOMOSEXUALS IN THE MILITARY A SUBJECT HE WOULD RATHER HEAR LESS ABOUT SOME LONGTIME OBSERVERS CONTEND THAT ANTAGONISTIC RELATIONS WITH THE PRESS CORPS EVEN WHEN UNDERSTANDABLE FREQUENTLY COME BACK TO HAUNT A PRESIDENT DURING TOUGH TIMES I DON'T THINK HE DOES NEED THEM NOW SAYS MICHAEL DEAVER PRESIDENT REAGAN'S COMMUNICATIONS DIRECTOR BUT HE WILL WHEN HE GETS BELOW 50 IN JOB APPROVAL A LEVEL HE'S HOVERING AROUND NOW HE'LL BE HAVING THEM UP TO THE RESIDENCE FOR COCKTAILS OR HAVING THEM OUT FOR DINNER OTHERS PLAY THIS IDEA DOWN THE WASHINGTON PRESS IS READY TO POUNCE ON ANY MISTAKE THESE PEOPLE CONTEND REGARDLESS OF THE PRESIDENT'S ATTITUDE I DON'T RECALL ANY EXAMPLE OTHER THAN JOHN F KENNEDY OF THE PRESS CUTTING ANY PRESIDENT ANY SLACK MR SABATO SAYS ADDS JODY POWELL WHO WAS PRESIDENT CARTER'S PRESS SECRETARY MOST OF WHAT PEOPLE ARE READING AS ANIMOSITY IS REALLY THE WAY THEY ARE TRYING TO GO ABOUT SELLING MAJOR PROGRAMS THAT ARE TREMENDOUSLY COMPLEX BUT THOSE INSIDE THE WHITE HOUSE FIND PLENTY OF EVIDENCE OF ENMITY FROM MR CLINTON TOWARD THE WASHINGTON PRESS AFTER HE READ AN ARTICLE IN THE WASHINGTON POST ABOUT SAILORS BADMOUTHING HIM DURING HIS RECENT VISIT TO THE USS THEODORE ROOSEVELT MR CLINTON GAVE HIS COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS A TONGUELASHING THIS ISN'T TRUE MR CLINTON WAS OVERHEARD BELLOWING HE EVEN WENT ON TO BLAME MR STEPHANOPOULOS FOR ALLOWING THE STORY TO APPEAR MR STEPHANOPOULOS DECLINES TO COMMENT MR CLINTON EARLIER HAD A SIMILAR SHOUTING EPISODE WITH SEVERAL MEMBERS OF HIS SENIOR STAFF THE OUTBURST FOLLOWED A TIME MAGAZINE COLUMN THAT QUOTED AN UNIDENTIFIED TOP ADMINISTRATION OFFICIAL AS SAYING THAT MR CLINTON COULD ROLL OVER SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY THIS PUTS ME IN THE POSITION OF HAVING TO APOLOGIZE FOR SOMETHING I DON'T EVEN BELIEVE MR CLINTON SAID DURING THE OVAL OFFICE MEETING AND NOW I HAVE TO APOLOGIZE TO A FRIEND ANOTHER TIME MR CLINTON WAS SO INCENSED ABOUT AN ARTICLE HE HAD JUST READ IN THE WASHINGTON TIMES THAT HE THREW DOWN HIS COPY OF IT IN FRONT OF STAFFERS WHO WERE GATHERED ONE SATURDAY MORNING TO WATCH HIS WEEKLY RADIO ADDRESS THIS IS A WASTE OF PAPER HE EXCLAIMED SUCH ANTIPATHY IS PARTLY A REMNANT OF MR CLINTON'S HARSH TREATMENT BY THE PRESS DURING THE EARLY PART OF LAST YEAR'S PRESIDENTIAL CAMPAIGN THE CLINTONS FELT BRUTALIZED BY THE GENNIFER FLOWERS TABLOID REVELATIONS AND WERE BITTER ABOUT MUCH OF THE SUBSEQUENT NEWS COVERAGE OF MR CLINTON'S AVOIDANCE OF THE DRAFT DURING THE VIETNAM WAR THEY ALSO HAVEN'T FORGOTTEN THAT EARLY IN THE CAMPAIGN MUCH OF THE ESTABLISHMENT PRESS DECLARED MR CLINTON'S CANDIDACY ALL BUT DEAD DURING THAT SAME PERIOD MR CLINTON WHO FOR YEARS HAD CULTIVATED THE NATIONAL PRESS AND GOTTEN FAVORABLE COVERAGE BEGAN TO SEEK ALTERNATIVE FORUMS TO CONVEY HIS MESSAGE AND TO PROMOTE HIMSELF IN THE NEW HAMPSHIRE PRIMARY CAMPAIGN HE TURNED TO TOWN HALL MEETINGS AND WAS ABLE TO USE THEM TO FOCUS ON THE SUBSTANCE OF HIS PROPOSALS RATHER THAN THE SCANDAL OF THE DAY SOON THEREAFTER MR CLINTON BEGAN TO APPEAR ON TALK SHOWS BOTH ON TELEVISION AND RADIO AND WAS ABLE TO DELIVER HIS THEMES AT GREATER LENGTH AND IN HIS OWN WORDS HIS FIRST ENCOUNTER WITH PHIL DONAHUE WAS ESPECIALLY INSTRUCTIVE AIDES SAY AFTER A SERIES OF ROUGH QUESTIONS FROM THE HOST MR CLINTON REARED BACK AND ATTACKED THE PRESS FOR DIVERTING THE CAMPAIGN FROM THE ISSUES THAT MATTERED THE AUDIENCE APPLAUDED VIGOROUSLY THERE ISN'T ANYTHING UNUSUAL ABOUT A PRESIDENT TRYING TO GO OVER THE HEADS OF THE WASHINGTON PRESS FRANKLIN ROOSEVELT HAD HIS FIRESIDE CHATS RICHARD NIXON STARTED THE SATURDAY MORNING RADIO ADDRESSES AND JIMMY CARTER WENT ON CALLIN SHOWS BUT MR CLINTON IS THE FIRST PRESIDENT TO BOAST ABOUT HIS INTENTIONS AT A BLACKTIE DINNER FOR RADIO AND TELEVISION CORRESPONDENTS LAST MONTH MR CLINTON CONFESSED YOU KNOW WHY I CAN STIFF YOU ON THE PRESS CONFERENCES BECAUSE LARRY KING LIBERATED ME BY GIVING ME TO THE AMERICAN PEOPLE DIRECTLY TO BE SURE QUERIES FROM VOTERS ARE SOFTER MORE RESPECTFUL IN TONE AND MORE PERSONAL THAN THOSE FROM WASHINGTON REPORTERS BUT ACCORDING TO MR SABATO MOST OF THE QUESTIONS REFLECT WHAT THEY SEE IN THE HEADLINES OR WHAT THEY SAW LAST NIGHT ON THE EVENING NEWS STILL MR CLINTON CONTINUES TO GET POLITICAL MILEAGE OUT OF BASHING THE PRESS EVEN AT LAST MONTH'S ANNUAL GRIDIRON DINNER THROWN BY WASHINGTON'S TOP JOURNALISTS THE PRESIDENT'S JOKES HAD BARBS I'M GLAD TO BE HERE SPEAKING FOR THE FIRST TIME AT THE GRIDLOCK DINNER HE TOLD THE CROWD I WANT TO APOLOGIZE TO SENATOR DOLE AND PRESIDENT BUSH I ALWAYS THOUGHT THEY WERE RESPONSIBLE FOR GRIDLOCK BUT NOW I KNOW IT'S THE PRESS THAT DID IT WHITE HOUSE AIDES MAKE LITTLE EFFORT TO COUNTER THE IMPRESSION THAT THE PRESIDENT THINKS ILL OF THE WASHINGTON PRESS THEY ASSERT MR CLINTON HAS BEEN QUITE OPEN AND HAS TAKEN MORE QUESTIONS FROM WASHINGTON REPORTERS THAN ANY OF THE LAST THREE PRESIDENTS BUT MOST OF THESE QUESTIONS WERE AT PHOTO SESSIONS WHERE ACCESS IS TIGHTLY CONTROLLED BY THE WHITE HOUSE WHEN ASKED DIRECTLY IF MR CLINTON LIKES THE WASHINGTON PRESS MR STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR ANSWERS OBLIQUELY I THINK HE LIKES REPORTERS WHETHER HE LIKES THE WASHINGTON PRESS OR NOT MR CLINTON'S VIEW OF THE PRESS IS UNUSUAL FOR A NEW PRESIDENT ALMOST EVERY PRESIDENT COMES INTO OFFICE CLAIMING THEY ARE GOING TO HAVE THE MOST OPEN ADMINISTRATION IN HISTORY AND OVER TIME THEY CLOSE UP SAYS STEPHEN HESS A PRESS EXPERT AT THE BROOKINGS INSTITUTION THE DIFFERENCE IS THIS PRESIDENT DIDN'T EVEN MAKE THE GESTURE 9304150123 930415 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 ASARCO INC 100 MILLION OF DEBENTURES DUE APRIL 15 2013 PRICED AS 7 7/8 AT 99648 TO YIELD 791 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 115 PERCENTAGE POINTS ABOVE THE TREASURY 30YEAR BOND RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP COMMERCIAL CREDIT CO 150 MILLION OF NOTES DUE APRIL 15 2000 PRICED AS 6S AT 996 TO YIELD 607 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 055 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS FEDERAL FARM CREDIT BANKS 150 MILLION OFFERING OF FIVEYEAR FLOATINGRATE CONSOLIDATED SYSTEMWIDE BONDS PRICED TO INITIALLY FLOAT 50 BASIS POINTS ABOVE THE 91DAY TREASURY BILL RATE THE BONDS OFFERED THROUGH CITICORP SECURITIES MARKETS INC WILL BEAR INTEREST FROM THE SECOND YEAR THROUGH THE FIFTH YEAR AT AN ANNUAL FLOATING RATE EQUAL TO THE TWOYEAR TREASURY NOTE RATE TIMES 04 PLUS 236 BASIS POINTS THE BONDS ARE DUE APRIL 23 1998 INTEREST PAYMENTS WILL BE MADE QUARTERLY ON EACH JAN 23 APRIL 23 JULY 23 AND DEC 23 BEGINNING JULY 23 1993 PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES THE BONDS ARE ISSUED IN BOOKENTRY FORM ONLY AND ARE AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 AND MULTIPLES OF 5000 FLORIDA POWER & LIGHT CO 225 MILLION OF FIRST MORTGAGE BONDS DUE APRIL 1 2016 WAS WON BY LEHMAN BROTHERS THE BONDS WILL BE REOFFERED AS 73S AT 98 TO YIELD 7483 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED AT A SPREAD OF 072 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P FLORIDA POWER & LIGHT IS A UNIT OF FPL GROUP INC GEORGIA POWER CO 200 MILLION OF FIRST MORTGAGE BONDS DUE APRIL 1 2003 WON BY DEALERS LED BY MORGAN STANLEY & CO THE BONDS WILL BE REOFFERED AS 6 5/8 S AT 99628 TO YIELD 6676 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FIVE YEARS THE ISSUE WAS PRICED AT A SPREAD OF 077 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P GEORGIA POWER IS A UNIT OF SOUTHERN CO GEORGIA POWER CO 100 MILLION OF FIRST MORTGAGE BONDS DUE APRIL 1 1998 WON IN COMPETITIVE BIDDING BY DEALERS LED BY MERRILL LYNCH & CO THE BONDS WILL BE REOFFERED AS 5 1/2 S AT 99875 TO YIELD 5528 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 048 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P GEORGIA POWER IS A UNIT OF SOUTHERN CO HYUNDAI MOTOR FINANCE CO 1156 MILLION OF AUTO LOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS THROUGH SOLE UNDERWRITERS SALOMON BROTHERS INC THE 10636 MILLION SENIOR CLASS A CERTIFICATES WAS PRICED AS 43 AT 99 29/32 TO YIELD 4403 A 65BASISPOINT SPREAD ABOVE THE TREASURY TWOYEAR NOTE THE 925 MILLION SUBORDINATE CLASS B CERTIFICATES WAS PRICED AS 475 AT 99 28/32 TO YIELD 4873 A 110BASISPOINT SPREAD ABOVE THE TREASURY TWOYEAR NOTE BOTH CLASSES HAVE AN AVERAGE LIFE OF 156 YEARS AND A LEGAL FINAL MATURITY OF APRIL 15 1998 THE SENIOR CLASS WAS RATED TRIPLEA BY MOODY'S AND S&P THE SUBORDINATE CLASS WAS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P HYUNDAI MOTOR FINANCE IS A UNIT OF HYUNDAI MOTOR CO OF SEOUL SOUTH KOREA PENNSYLVANIA POWER & LIGHT CO 275 MILLION TWOPART ISSUE OF FIRST MORTGAGE BONDS PRICED THROUGH DEALERS LED BY FIRST BOSTON CORP ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 150 MILLION OF BONDS DUE APRIL 1 1998 WAS PRICED AS 5 1/2 S AT 99782 TO YIELD 555 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 05 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART CONSISTING OF 125 MILLION OF BONDS DUE APRIL 1 2005 WAS PRICED AS 6 1/2 S AT 99014 TO YIELD 662 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 072 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P RELIANCE ELECTRIC CO 150 MILLION OF NOTES DUE APRIL 15 2003 PRICED AS 68 AT 99705 TO YIELD 6841 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 095 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SOCIETY NATIONAL BANK 100 MILLION OF MEDIUMTERM NOTES DUE APRIL 21 1994 PRICED AS 325S AT 99951 TO YIELD 33 INITIALLY ACCORDING TO MCM CORPORATEWATCH THE ISSUE WILL BE REOFFERED AT VARIOUS PRICES THROUGH KIDDER PEABODY & CO THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 014 PERCENTAGE POINT ABOVE THE TREASURY ONEYEAR BILL THE NOTES ARE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P SOCIETY NATIONAL BANK IS A UNIT OF SOCIETY CORP MASSACHUSETTS HEALTH & EDUCATIONAL FACILITIES AUTHORITY 153 MILLION SERIES B REVENUE BONDS FOR LAHEY CLINIC MEDICAL CENTER PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP YIELDS RANGE FROM 28 IN 1994 TO 576 IN 2023 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P PENNSYLVANIA 4203 MILLION FIRST SERIES OF 1993 GENERAL OBLIGATION BONDS APPARENTLY WON BY A LEHMAN BROTHERS GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 51475 YIELDS FOR REOFFERED BONDS WERE SET AT 34 IN 1995 TO 56 IN 20112013 MOODY'S HAS RATED THE ISSUE SINGLEA1 AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING SOUTH CAROLINA PUBLIC SERVICE AUTHORITY 384 MILLION 1993 SERIES A REFUNDING REVENUE BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS FOR FIXEDRATE BONDS RANGE FROM 49 IN 2000 TO 575 IN 2021 THE FIXEDRATE BONDS INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P UNINSURED FIXEDRATE BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S SINGLEAPLUS BY S&P AND SINGLEAPLUS BY FITCH INVESTORS SERVICE INC ALSO INCLUDED IN THE OFFERING ARE DERIVATIVES CALLED FLOATING AUCTION TAX EXEMPTS AND RESIDUAL INTEREST TAXEXEMPT SECURITIES THOSE DERIVATIVES WHICH ARE MBIAINSURED AREN'T FORMALLY REOFFERED TO INVESTORS VIRGINIA BEACH VA 1646 MILLION SERIES 1993 AND SERIES 1993A BONDS PRICED BY A GOLDMAN SACHS & CO GROUP THE OFFERING INCLUDES 1446 MILLION SERIES 1993 GENERAL OBLIGATION REFUNDING BONDS WHICH HAVE BEEN PRICED TO YIELD FROM 24 IN 1994 TO 55 IN 2011 THERE ARE ALSO 20 MILLION SERIES 1993A GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS WHICH HAVE YIELDS THAT RANGE FROM 26 IN 1994 TO 56 IN 2012 AND 2013 BOTH MOODY'S AND S&P ARE EXPECTED TO RATE THE ISSUE DOUBLEA SANMINA HOLDINGS INITIAL OFFERING OF 23 MILLION COMMON SHARES OF PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES KINGDOM OF NORWAY SOVEREIGN 15 BILLION MARKS OF 6 1/8 EUROBONDS DUE MAY 5 1998 AT ISSUE PRICE 10165 VIA DEUTSCHE BANK AG REOFFERED AT 9965 TO YIELD 621 SPREAD 12 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT BOND FEES 2 1/4 KANSAI ELECTRIC POWER CO JAPAN 300 MILLION OF 7 1/8 EUROBONDS DUE APRIL 27 1998 AT ISSUE PRICE 100985 VIA SG WARBURG SECURITIES LTD AND BARCLAYS DE ZOETE WEDD SECURITIES INC REOFFERED AT 9936 TO YIELD 728 ANNUAL SPREAD 47 BASIS POINTS OVER 7 1/4 GILT DUE 1998 FEES 1 7/8 TOKYO ELECTRIC POWER CO JAPAN 300 MILLION OF 7 1/8 EUROBONDS DUE MAY 13 1998 AT ISSUE PRICE 101325 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 997 TO YIELD 72 ANNUAL SPREAD 40 BASIS POINTS ABOVE 7 1/4 GILT DUE 1998 FEES 1 7/8 JAPAN FINANCE CORP FOR MUNICIPAL ENTERPRISES JAPAN 250 MILLION OF 6 1/4 EUROBONDS DUE MAY 19 2003 AT ISSUE FIXED REOFFER PRICE 9982 VIA BANK OF TOKYO CAPITAL MARKETS YIELD 6179 ANNUAL AT REOFFER PRICE SPREAD 275 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE GUARANTOR GOVERNMENT OF JAPAN FEES 0325 BNG NEDERLANDSE GEMEENTEN NETHERLANDS 250 MILLION OF 6 EUROBONDS DUE MAY 12 2000 AT ISSUE PRICE OF 101525 VIA SWISS BANK CORP REOFFER PRICE PAR TO YIELD 6 ANNUAL SPREAD 40 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1 7/8 BANCO CIDADE SA BRAZIL 55 MILLION OF 10 SEMIANNUAL EURONOTES AT FIXED REOFFER PRICE 982449 VIA BANQUE NATIONALE DE PARIS YIELD 1082 AT REOFFER PRICE MARGIN 685 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1 1/4 BANCO BOAVISTA SA BRAZIL 50 MILLION OF 11 SEMIANNUAL EUROBONDS DUE OCT 27 1995 AT ISSUE AND FIXED REOFFER PRICE 99468 VIA BEAR STEARNS INTERNATIONAL LTD YIELD 11 1/4 SEMIANNUAL SPREAD 728 BASIS POINTS ABOVE COMPARABLE TREASURY FEES 1 3/8 WORLD BANK SUPRANATIONAL 200 BILLION LIRE OF 108 EUROBONDS DUE MAY 19 2003 AT ISSUE PRICE 101 7/8 VIA ISTITUTO BANCARIO SAN PAOLO DI TORINO YIELD 108 AT BREAKEVEN PRICE FOR COMANAGING BANKS FEES 1 7/8 KINGDOM OF DENMARK SOVEREIGN 150 MILLION SWISS FRANCS OF 4 3/4 PRIVATELY PLACED NOTES DUE MAY 25 1999 PRICED AT 102 1/4 VIA SWISS BANK CORP FEES TOTAL 1 5/8 POINTS RHONEPOULENC SA FRANCE 250 MILLION SWISS FRANCS OF 5 PUBLIC BONDS DUE JUNE 2 2000 PRICED AT 101 3/4 VIA CREDIT SUISSE FEES TOTAL 2 1/8 POINTS UNIONE INDUSTRIELLE DE CREDIT FRANCE 100 MILLION SWISS FRANCS OF 5 1/8 PUBLIC BONDS DUE MAY 27 1998 PRICED AT 101 7/8 VIA COUTTS & CO FEES TOTAL 1 5/8 POINTS DAIICHI PHARMACEUTICAL CO JAPAN 200 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE APRIL 27 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 075 COUPON AT PAR VIA CREDIT SUISSE EACH 50000 FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM MAY 10 1993 TO APR 18 1997 TO BUY COMPANY SHARES TERMS WILL BE FIXED APR 19 FEES TOTAL 1 5/8 POINTS 9304150122 930415 FINANCING BUSINESS TUBOSCOPE VETCO INTERNATIONAL INC TUBOSCOPE VETCO INTERNATIONAL INC A PIPELINE INSPECTION AND COATINGS SERVICES COMPANY BASED IN HOUSTON SAID IT IS OFFERING 75 MILLION OF 10 3/4 SENIOR SUBORDINATED NOTES DUE 2003 THE NOTES WILL NOT BE REDEEMABLE PRIOR TO APRIL 15 1998 PROCEEDS FROM THE OFFERING TO BE MANAGED BY LEHMAN BROTHERS AND MERRILL LYNCH WILL BE USED TO REDEEM ALL OF THE 14 SENIOR SUBORDINATED DEBENTURES OUTSTANDING DUE IN 1998 9304150120 930415 FINANCING BUSINESS TEXAS UTILITIES CO TEXAS UTILITIES CO DALLAS SAID ITS TEXAS UTILITIES ELECTRIC CO UNIT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION RELATING TO AN OFFERING OF 200 MILLION OF ITS CUMULATIVE PREFERRED STOCK THE COMPANY SAID THE PROCEEDS FROM THE SALES WHICH WILL OCCUR FROM TIME TO TIME WILL BE USED TO REDEEM CERTAIN SECURITIES MEET EXPENDITURES OF CONSTRUCTION PROGRAMS AS WELL AS FOR OTHER CORPORATE PURPOSES TEXAS UTILITIES HAS NOT YET CHOSEN AN UNDERWRITER FOR THE PROPOSED OFFERING 9304150118 930415 WELCOME TRAVELER SOME STATES AND CITIES WITH INCOME TAXES GO AFTER RICH VISITORS PRO ATHLETES ARE EASY MARKS REQUIRED TO FILE FORMS IN MANY PLACES THEY PLAY NO LOVE LOST ON PHILADELPHIA BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL ONE MEMORABLE AFTERNOON LAST FALL DALLAS COWBOY QUARTERBACK TROY AIKMAN ELUDED THE 300POUND DEFENSIVE LINEMEN OF THE PHILADELPHIA EAGLES FOR MOST OF A GAME AT VETERANS STADIUM BUT MR AIKMAN WASN'T ABLE TO DODGE AN EVEN MORE DETERMINED PHILADELPHIAN THE CITY TAX COLLECTOR WHEN HE GOT HOME TO DALLAS MR AIKMAN FOUND IN HIS MAILBOX AN INCOMETAX BILL THE CITY OF BROTHERLY LOVE WAS ASKING HIM TO ANTE UP A PRORATA SHARE OF HIS ANNUAL INCOME FOR PLAYING JUST THAT ONE GAME AT THE VET UNFAIR MAYBE SO BUT NOT UNCOMMON STRAPPED FOR CASH IN A SPOTTY ECONOMIC RECOVERY AND SMARTING FROM CUTBACKS IN FEDERAL FUNDS SOME STATES AND CITIES WITH INCOME TAXES HAVE DECIDED TO ENFORCE TAX LAWS ON RICH ITINERANTS IT'S EASIER THAN RAISING PUBLIC HACKLES BY INCREASING TAX RATES STATE OFFICIALS WILL JUMP AT ANY CHANCE THEY SEE TO GET MONEY WITHOUT IMPOSING HIGHER TAXES ON CURRENT RESIDENTS SAYS STEVEN GOLD OF THE CENTER FOR THE STUDY OF THE STATES IN ALBANY NY THE EASIEST TARGETS ARE PROFESSIONAL ATHLETES ENTERTAINERS AND OTHERS WHO ARE JUST PASSING THROUGH BUT MAKING BIG MONEY WHILE IN TOWN PHILADELPHIA WHICH IS AMONG CITIES THAT HAVE THEIR OWN INCOME TAXES SENT 1992 TAX BILLS TO A NUMBER OF PRO FOOTBALL BASEBALL HOCKEY AND BASKETBALL STARS WHO PLAYED THERE LAST YEAR NEW YORK DETROIT CLEVELAND AND MINNEAPOLIS ARE ALSO TRYING TO COLLECT SUCH TAXES AMONG THE STATES WISCONSIN MASSACHUSETTS NEW YORK CALIFORNIA AND MINNESOTA ARE THE MOST EAGER TO SOCK JOCKS WITH TAX BILLS BUSINESS MANAGERS SAY BOSTON RED SOX PITCHER FRANK VIOLA HAD TO FILL OUT 13 INCOMETAX RETURNS FOR CITIES AND STATES HE PLAYED IN LAST YEAR GOLFERS ON THE PGA TOUR SEEM TO HAVE IT EVEN WORSE WE HOLD TOURNAMENTS IN 38 STATES SAYS PGA CONTROLLER JEAN LIGHTCAP A PLAYER COULD CONCEIVABLY HAVE TO FILE 38 DIFFERENT INCOMETAX RETURNS WE GET CALLS EVERY DAY FROM FRUSTRATED GOLFERS ASKING US WHAT TO DO SOME STATES ARE TREATING THE MATTER AS A TAX WAR AND ARE GOING BEYOND UNIFORMLY ENFORCING THEIR LAWS ILLINOIS LEGISLATORS ANGRY AT STATES TAXING MEMBERS OF THE CHICAGO BULLS BASKETBALL TEAM LAST SUMMER ENACTED A 3 INCOME TAX ON VISITING PRO ATHLETES WHOSE STATES TRY TO TAX VISITING ILLINOIS TEAMS LEGISLATORS DUBBED THE ACT MICHAEL JORDAN'S REVENGE STATES AND CITIES ARE ALSO GOING AFTER PEOPLE WHO CLAIM TO BE NONRESIDENTS BUT WHO SPEND A LOT OF TIME THERE ESPECIALLY PEOPLE WHO HAVE MAJOR ASSETS OR PERSONAL CONNECTIONS THERE NEW YORK CITY AND STATE AND CALIFORNIA ARE TAKING THE LEAD IN SHARPLY INCREASING AUDITS IF THEY CAN PROVE THAT PEOPLE ARE RESIDENTS THEY CAN TAX THEM AT HIGHER RATES OR ASSESS TAXES ON A BIGGER CHUNK OF THEIR INCOME THE SUSPICION OFTEN IS THAT WEALTHY FOLKS ARE EVADING TAXES THEY OWE BY CLAIMING TO RESIDE IN STATES WITH NO INCOME TAX OR LOWER TAX RATES SEVERAL STATES ALSO ARE TRACKING DOWN RETIREES WHO EARNED PENSIONS WHILE WORKING THERE BUT WHO HAVE SINCE MOVED TO SUNNIER CLIMES TAXWISE AT LEAST OFFICIALS SAY THAT TAXES WERE DEFERRED ON INCOME AND ARE DUE WHEN DISTRIBUTIONS ARE PAID OUT NO MATTER WHERE THE RETIREE HAPPENS TO HAVE FOUND HAVEN RETIRED LOS ANGELES POLICE DETECTIVE HOWARD SMITH MOVED ALL THE WAY TO SAN JUAN ISLAND PART OF THE NOINCOMETAX STATE OF WASHINGTON CALIFORNIA HAS BEGUN TAKING 650 OR 25 OF HIS MONTHLY CITY PENSION CHECK TO PAY THE 26000 IN BACK TAXES THE GOLDEN STATE CLAIMS HE OWES IT'S GROSSLY UNFAIR MR SMITH SAYS CALIFORNIA NEW YORK AND VERMONT HAVE PROGRAMS TO SYSTEMATICALLY IDENTIFY AND THEN GO AFTER FORMER RESIDENTS MINNESOTA OHIO AND OREGON WANT TO DO THE SAME BUT SO FAR LACK PROGRAMS TO TRACK PEOPLE DOWN ATHLETES TEND TO BE SINGLED OUT BECAUSE THEY ARE EASY TO FIND SAYS STEPHEN W KIDDER A FORMER MASSACHUSETTS TAX COMMISSIONER CURRENTLY A PARTNER AT THE BOSTON LAW FIRM OF HEMENWAY & BARNES SPORTS STARS AND OTHER CELEBRITIES PRESUMABLY CAN AFFORD TO PAY THE TAXES BUT THE PEOPLE WHO MANAGE THEIR MONEY PROFESS TO BE VERY ANNOYED BECAUSE OF THE HUGE AMOUNT OF PAPERWORK INVOLVED IT'S AN ACCOUNTING NIGHTMARE SAYS LEIGH STEINBERG ATTORNEY FOR MR AIKMAN THE QUARTERBACK JOSEPH COSBY AGREES HE IS PRESIDENT OF A MCLEAN VA SPEAKER'S BUREAU THAT BOOKS SUCH MEDIA LUMINARIES AS ED BRADLEY OF CBS'S 60 MINUTES AND PIERRE SALINGER OF ABC NEWS ABSOLUTELY ABSURD A QUAGMIRE HE SAYS CRAIG FENECH ATTORNEY FOR MR VIOLA SAYS ENFORCEMENT IS LUDICROUS WHEN MR VIOLA PITCHED FOR THE MINNESOTA TWINS THE CITY OF DETROIT CALLED TO SAY IT WOULD ARREST HIM AT THE AIRPORT UNLESS HE PAID A DELINQUENT TAX BILL FOR A GAME HE HAD PLAYED IN THE MOTOR CITY SAYS MR FENECH NICHOLAS BONTOMASI SENIOR TAX INVESTIGATOR FOR THE CITY DOESN'T RECALL THE VIOLA INCIDENT BUT SAYS THE CITY HAS SERVED PLAYERS ON THE NEW YORK YANKEES AND TORONTO BLUE JAYS WITH BENCH WARRANTS ON CITY TAX DELINQUENCY CHARGES WHEN THEY ARRIVED IN DETROIT IT'S NO WONDER STARS LIKE TO PERFORM IN NEVADA WHICH HAS NO STATE OR CITY INCOME TAXES SAYS WILLIAM BRAUNSTEIN BUSINESS MANAGER FOR COMIC DON RICKLES MR RICKLES HAD TO FILE 10 STATE INCOMETAX RETURNS FOR 1992 IT WAS LAST SEPTEMBER THAT PHILADELPHIA DECIDED TO APPLY ITS FLAT NONRESIDENT 43 INCOME TAX TO VISITING PROFESSIONAL ATHLETES FOR TEAM ATHLETES THE INCOME TAX APPLIES ONLY TO THAT PERCENTAGE OF THE WORK YEAR THAT THE STAR IS IN PHILADELPHIA AFTER SOME DEBATE THE FEDERATION OF TAX ADMINISTRATORS A WASHINGTON GROUP REPRESENTING STATE TAX OFFICIALS GOT STATES TO AGREE LAST MONTH TO INCLUDE PRACTICE DAYS AS WELL AS GAME DAYS IN THEIR DEFINITION OF THE WORK YEAR BUT FOR THOSE IN INDIVIDUAL SPORTS TENNIS AND GOLF STARS FOR INSTANCE THE TAX RATE IS 43 OF INCOME FROM A PARTICULAR PERFORMANCE IN PHILADELPHIA SPORTS WRITERS QUICKLY CALLED THIS THE JOCK TAX PHILADELPHIA SENT OUT 4500 TAX NOTICES TO FOOTBALL BASKETBALL BASEBALL AND HOCKEY PLAYERS ON SEPT 12 ASKING RECIPIENTS TO FILE RETURNS GOING ALL THE WAY BACK TO 1986 AFTER NEGOTIATIONS WITH THE LEAGUES HOWEVER AN AGREEMENT WAS REACHED TO EXTEND THE TAXES BACK ONLY TWO YEARS NICHOLAS PANARELLA AN OUTSIDE ATTORNEY FOR THE CITY SAYS PHILADELPHIA WASN'T JUST PICKING ON ATHLETES THE WHOLE SPORTS INFRASTRUCTURE OWES TAXES HE SAYS INCLUDING VISITING REFEREES TRAINERS ASSISTANT COACHES AND TV BROADCASTERS LIKE THE ABC MONDAY NIGHT FOOTBALL CREW OF FRANK GIFFORD AL MICHAELS AND DAN DIERDORF ALL THREE OF WHOM WERE ASKED TO FILE RETURNS WE LOOK AT ANYONE EVEN TANGENTIALLY CONNECTED TO THE GAME SAYS ANDREW P BRALOW PHILADELPHIA'S CHIEF DEPUTY SOLICITOR ABC SPORTS IS NOW IN COMPLIANCE WITH PHILADELPHIA'S TAX SAYS MR PANARELLA GOING AFTER ATHLETES WAS JUST A WAY TO SEND A MESSAGE TO ALL OUTSIDE PROFESSIONALS WHO MAKE MONEY IN PHILADELPHIA BUT HAVE NOT BEEN PAYING TAXES ON THAT INCOME HE SAYS VISITING SURGEONS WHO PRACTICE IN CITY HOSPITALS ATTORNEYS WHO PRACTICE IN THE COURTS AND OTHERS ARE ALSO BEING TARGETED HE SAYS THE TAX IS A WAY TO GET PROFESSIONALS WHO LIVE ELSEWHERE BUT USE THE CITY FACILITIES TO HELP PAY FOR THEM HE SAYS MR PANARELLA SAYS HE EXPECTS THE CITY WILL COLLECT AN ADDITIONAL 7 MILLION TO 10 MILLION IN ITS FIRST YEAR UNDER THE AGGRESSIVE NEW TAXCOLLECTION PROGRAM UNDER CONTRACT WITH THE CITY MR PANARELLA'S LAW FIRM HANDLES THE COLLECTION EFFORT FOR A FEE OF 25 OF THE ADDITIONAL TAXES RECEIVED BUT SOME PEOPLE ARE CONCERNED THAT AGGRESSIVE TAXES ON PROFESSIONALS SUCH AS PHILADELPHIA'S MAY ULTIMATELY DISCOURAGE BUSINESS FROM COMING TO THE CITY AFTER A SPLASHY MEDIA PLAY FROM ENFORCEMENT AT THE OUTSET PHILADELPHIA'S FUTURE ECONOMIC BASE WILL BE SEVERELY IMPACTED SAYS MR KIDDER THE LAWYER WHO REPRESENTS THE MAJOR SPORTS LEAGUES OBVIOUSLY TEAMS HAVE TO PLAY IN PHILADELPHIA BUT IF YOU HAVE ANY DISCRETION AT ALL YOU WON'T DO BUSINESS THERE PHILADELPHIA DEPUTY SOLICITOR MR BRALOW DISAGREES IF WE CAN EASE THE TAX LOAD ON CITY BUSINESS AND CITY RESIDENTS AND SPREAD THE PAIN TO AS BROAD A BASE AS WE CAN THE FUTURE ECONOMIC IMPACT WILL BE POSITIVE HE SAYS COMPLIANCE WITH THESE NEW TAX COLLECTION PROGRAMS IS TRICKY CITIES AND STATES HAVE TO FIND NONRESIDENTS MAKING MONEY IN THEIR DISTRICTS TO TAX THEM IT'S EASY TO FIND PRO ATHLETES AND ENTERTAINERS MOST STATE TAX DEPARTMENTS HAVE EMPLOYEES WHO STUDY NEWSPAPER ENTERTAINMENT SECTIONS AND MAKE SURE THE STATE GETS ITS SHARE OF A PERFORMER'S TAKE WITHHELD FROM HIS OR HER CHECK THEY GET THEIR MONEY RIGHT ON THE SPOT SAYS MR BRAUNSTEIN AN ENTERTAINMENT BUSINESS MANAGER IT'S ALSO EASY TO FIND BIGNAME LECTURERS WHO DRAW SUBSTANTIAL FEES FOR APPEARANCES MR COSBY WHO REPRESENTS SOME 300 SPEAKERS SAYS SPONSORS TYPICALLY WITHHOLD STATE INCOME TAXES FROM FEES CALIFORNIA IN 1992 GATHERED A TOTAL OF 54 MILLION FROM APPLYING THE STATE INCOME TAX TO NONRESIDENT ENTERTAINERS SPEAKERS CLASSICAL MUSICIANS ACTORS IN PLAYS AND INDIVIDUAL SPORTS PERFORMERS ACCORDING TO THE CALIFORNIA FRANCHISE TAX BOARD BUT IT'S HARD TO FIND THE LESSCELEBRATED BUT NEVERTHELESS MAJOR DEAL MAKER WHO TRAVELS FROM WASHINGTON TO NEW YORK TO BOSTON EARNING MONEY AT EACH STOP SAYS WILLIAM RABY SENIOR TAX LECTURER AT ARIZONA STATE UNIVERSITY THE RESULT SO FAR WE HAVE CHAOTIC MASSIVE NONCOMPLIANCE WITH ONLY HIGHPROFILE INDIVIDUALS BEING TAXED HE SAYS AND ONE MORE PROBLEM LOOMS FOR CITIES AND STATES THAT MIGHT LIKE TO JOIN IN THE TAXCOLLECTING FUN AS MORE AND MORE STATES AND CITIES GO AFTER THIS REVENUE IT BECOMES A ZERO SUM GAME SAYS MR KIDDER IN PART THAT'S BECAUSE AN INDIVIDUAL GETS CREDIT ON HIS STATE TAX RETURN FOR PAYING INCOME TAXES IN OTHER STATES IT'S LIKE STEALING FROM ONE POCKET TO PAY INTO ANOTHER POCKET SAYS MR COSBY MR RABY OF ARIZONA STATE SAYS THAT IT MAY TAKE A MULTISTATE COMPACT TO CLEAR UP WHO CAN TAX WHOM THE FEDERATION OF TAX ADMINISTRATORS TRIED LAST MONTH TO GET STATES TO AGREE THAT ONLY THE STATE WHERE A TEAM IS HEADQUARTERED WOULD TAX ITS ATHLETES BUT THE PLAN WAS SCUTTLED AFTER A CONSULTANT WARNED THAT THAT WAS POSSIBLY UNCONSTITUTIONAL THE RESULT EVERY STATE WILL CONTINUE TO DO ITS OWN THING 9304150116 930415 BUSINESS BRIEF RAYTHEON AIDED BY MORE COSTCUTTING POSTS 98 RISE IN FIRSTQUARTER PROFIT LEXINGTON MASS RAYTHEON CO AIDED BY CONTINUED COSTCUTTING AND GROWING SALES IN ALL OF ITS BUSINESS SEGMENTS REPORTED THAT FIRSTQUARTER EARNINGS ROSE 98 ON A 35 INCREASE IN SALES THE ELECTRONICS AIRCRAFT AND APPLIANCE MAKER SAID NET ROSE TO 1575 MILLION OR 116 A SHARE FROM 1434 MILLION OR 107 A SHARE A YEAR EARLIER SALES CLIMBED TO 220 BILLION FROM 213 BILLION RAYTHEON SAID IT HAD ABOUT 63300 EMPLOYEES AT THE END OF THE QUARTER DOWN FROM 70700 A YEAR EARLIER THE COMPANY EMPLOYED 63900 AT THE END OF 1992 THE COMPANY'S PROFIT RISE WAS SUPPORTED BY CONTINUED STRONG OPERATING PERFORMANCE IN GOVERNMENT ELECTRONICS COMMERCIAL ELECTRONICS APPLIANCES AND AIRCRAFT SAID DENNIS J PICARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER RAYTHEON SAID ITS DEFENSE BUSINESS HAS BEEN BOOSTED RECENTLY BY PATRIOT MISSILE CONTRACTS INCLUDING A 327 MILLION ORDER FOR KUWAIT WHICH IS EXPECTED TO INCREASE TO MORE THAN 450 MILLION AND A 1 BILLION SAUDI ARABIAN CONTRACT THE COMPANY SAID THE PERFORMANCE OF ITS BEECH AIRCRAFT UNIT CONTINUED TO IMPROVE FROM A YEAR EARLIER INCLUDING SLIGHTLY HIGHER SALES MAINLY OF BEECH 1900 COMMUTERS AND T1A JAYHAWK MILITARY TRAINERS RAYTHEON SAID SALES OF ITS ENERGY AND ENVIRONMENTAL BUSINESSES ALSO ROSE DUE TO INCREASED CONSTRUCTION ACTIVITY BUT IT SAID THE SEGMENT'S PROFITS FELL DUE TO THE TIMING OF ENGINEERING CONTRACT AWARDS AND STARTUP COSTS ON AN INTERNATIONAL PROJECT THE APPLIANCE GROUP'S SALES ROSE MORE THAN 12 WHILE THE UNIT'S OPERATING EARNINGS WERE UP MORE THAN 80 COMPARED WITH YEAREARLIER FIGURES THE COMPANY SAID DEMAND FOR REFRIGERATORS LAUNDRY EQUIPMENT AND COOKING PRODUCTS WAS STRONG DURING THE QUARTER RAYTHEON SAID ITS BACKLOG ROSE TO 761 BILLION UP 333 MILLION FROM DEC 31 1992 ITS BACKLOG AT THE END OF THE 1992 FIRST QUARTER WAS 818 BILLION TOTAL DEBT AT THE END OF THE FIRST QUARTER FELL TO 700 MILLION FROM 732 MILLION AS OF DEC 31 RAYTHEON SAID RAYTHEON'S FIRSTQUARTER RESULTS WERE PRETTY MUCH IN LINE WITH EXPECTATIONS SAID MICHAEL LAUER AN ANALYST WITH KIDDER PEABODY & CO HE ADDED THAT RAYTHEON'S EARNINGS ARE EXPECTED TO ACCELERATE IN THE SECOND HALF OF 1993 RESULTING IN ESTIMATED NET INCOME OF 520 A SHARE COMPARED WITH 472 A SHARE IN 1992 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING RAYTHEON CLOSED AT 58 DOWN 875 CENTS 9304150115 930415 WHO'S NEWS LUBY'S CAFETERIAS INC LUBY'S CAFETERIAS INC SAN ANTONIO LAURO F CAVAZOS FORMER US SECRETARY OF EDUCATION WAS NAMED TO THE BOARD OF THIS CAFETERIA CHAIN HE SUCCEEDS COFOUNDER ROBERT M LUBY 82 YEARS OLD WHO RETIRED AND WILL HOLD THE TITLE OF DIRECTOR EMERITUS DR CAVAZOS 66 IS CURRENTLY AN ADJUNCT PROFESSOR AT TUFTS UNIVERSITY SCHOOL OF MEDICINE AND A MANAGEMENT AND EDUCATION CONSULTANT 9304150114 930415 ANALYSTS' FORECAST HURTS A FAVORITE STATE STREET STOCK BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON STATE STREET BOSTON CORP STOCK WAS HAMMERED AS ANALYSTS CONCLUDED THAT AN INDUSTRY PRICE WAR WILL KEEP THE LONGTIME STOCK MARKET FAVORITE FROM ACHIEVING PAST PROFIT LEVELS STATE STREET IS A BANK THAT GETS MOST OF ITS INCOME FROM FEES FOR CUSTODIAL SERVICES PROVIDED TO PENSION AND MUTUAL FUNDS FOR THE PAST DECADE IT HAS BEEN A STOCK MARKET FAVORITE RACKING UP 17 ANNUAL INCREASES IN EARNINGS PER SHARE AND AN 18 RETURN ON EQUITY HOWEVER ANALYSTS SLASHED THEIR FORECASTS YESTERDAY AFTER EXAMINING FIRSTQUARTER FINANCIAL RESULTS THAT STATE STREET ISSUED TUESDAY MORNING TUESDAY THE STOCK FELL 125 TO 4275 FOR THE FIRST QUARTER STATE STREET REPORTED NET INCOME OF 427 MILLION OR 56 CENTS A SHARE UP 17 FROM 362 MILLION OR 48 CENTS A SHARE IN THE YEARAGO QUARTER WHILE THAT WAS IN LINE WITH ESTIMATES ANALYSTS CONCLUDED THAT RESULTS SHOWED THAT PROFIT MARGINS ARE ERODING STATE STREET'S ASSETS UNDER CUSTODY ROSE 26 FROM THE YEARAGO LEVEL TO 137 TRILLION BUT FEE REVENUE ROSE ONLY 16 TO 265 MILLION THOMAS BROWN BANKING ANALYST AT DONALDSON LUFKIN & JENRETTE AND A LONGTIME STATE STREET FAN SAID I CAN'T SEE THE END OF THE PROFITABILITY PRESSURES IN THE DOMESTIC CUSTODY BUSINESS HE SAID THAT STATE STREET HAS LAUNCHED A PRICE WAR IN THE CUSTODIAL BUSINESS THAT HURTS REVENUE FOR EXAMPLE THE BANK BID FAR LESS THAN COMPETITORS IN JANUARY TO WIN THE GIANT CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM'S CUSTODIAL BUSINESS AT THE SAME TIME STATE STREET IS INCREASING SPENDING ON COMPUTER EQUIPMENT TO MANAGE ALL CUSTODIAL ACCOUNTS I DON'T THINK THE COMPANY WILL ACHIEVE ITS LONGERTERM FINANCIAL OBJECTIVES OF 14 EARNINGS PER SHARE GROWTH AND 18 RETURN ON EQUITY MR BROWN SAID AT THE ANNUAL MEETING YESTERDAY MARSHALL N CARTER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT BASIC CUSTODY SERVICES ARE IN THE MATURE PHASE OF THE PRODUCT LIFE CYCLE AND ARE COMING UNDER PRICING PRESSURE HE ADDED IT IS IMPERATIVE THAT WE CONTINUE TO INVEST IN TECHNOLOGY ACCELERATED INVESTMENT SPENDING LIVIA S ASHER A BANK ANALYST WITH MERRILL LYNCH & CO SAID IT'S STILL A GROWTH BUSINESS BUT THEY SEEM TO BE ACCELERATING THEIR INVESTMENT SPENDING SHE PREDICTED REVENUE GROWTH WILL SLOW TO 10 A YEAR FOR 1993 AND 1994 AND SHE CUT HER EARNINGS ESTIMATES TO 230 A SHARE FROM 240 IN THE CURRENT YEAR AND 255 A SHARE FROM 275 IN 1994 STATE STREET EARNED 210 A SHARE IN 1992 STATE STREET HAS BEEN A MARKET FAVORITE IN PART BECAUSE ITS EARNINGS WERE INSULATED FROM BAD LOAN PRESSURES THAT BATTERED MOST NORTHEAST BANKS DURING THE PAST FIVE YEARS IRONICALLY NOW THAT THE BANKING CYCLE HAS IMPROVED STATE STREET'S RELIANCE ON PRICESENSITIVE FEE INCOME IS MAKING IT LOOK LESS ATTRACTIVE ANALYSTS SAID 9304150113 930415 WHO'S NEWS BIOGEN INC BIOGEN INC CAMBRIDGE MASS JOSEPH M DAVIE FORMERLY SENIOR VICE PRESIDENT SCIENCE AND TECHNOLOGY AT GD SEARLE & CO WAS NAMED VICE PRESIDENT RESEARCH OF THIS BIOTECHNOLOGY CONCERN HE SUCCEEDS VICKI SATO WHO RESIGNED TO PURSUE OTHER BUSINESS INTERESTS 9304150111 930415 WHO'S NEWS INTERNATIONAL RECOVERY CORP INTERNATIONAL RECOVERY CORP MIAMI SPRINGS FLA CELESTIN DURAND III WAS NAMED TO THE BOARD OF THIS AVIATION FUELING SERVICES COMPANY MR DURAND SUCCEEDS PETER BALJET WHO LEFT THE BOARD LAST NOVEMBER MR DURAND WILL ALSO BE CHAIRMAN OF THE NEW FINANCIAL RELATIONS COMMITTEE WHICH THE COMPANY SAID WAS FORMED TO ENHANCE INVESTOR RELATIONS PROGRAMS MR DURAND IS A FORMER VICE PRESIDENT OF MERRILL LYNCH SPECIALISTS INC 9304150110 930415 INTERNATIONAL VEBA CHAIRMAN DIES THROWING CONTROL OF FIRM TO DIRECTORS DUESSELDORF GERMANY A GROUP OF FOUR MANAGING BOARD DIRECTORS WILL ASSUME TEMPORARY CONTROL OF GERMAN ENERGY AND CHEMICAL CONGLOMERATE VEBA AG FOLLOWING THE ACCIDENTAL DEATH OF CHAIRMAN KLAUS PILTZ MR PILTZ 57 YEARS OLD WAS IDENTIFIED YESTERDAY AS AMONG THE VICTIMS OF AN AVALANCHE MONDAY IN THE AUSTRIAN ALPS MR PILTZ'S SON KLAUS 18 DAUGHTER UTA 20 AND A FAMILY FRIEND ALSO DIED IN THE AVALANCHE MR PILTZ'S 22YEAROLD DAUGHTER ANNE AND THREE OTHERS SURVIVED A VEBA SPOKESMAN SAID NO DISCUSSIONS ABOUT MR PILTZ'S SUCCESSOR HAD YET TAKEN PLACE AND NO OFFICIAL MEETING OF THE ADVISORY BOARD HAS YET BEEN SCHEDULED IF A SUCCESSOR IS TAPPED FROM WITHIN THE RANKS OF VEBA MANAGEMENT CHIEF FINANCIAL OFFICER ULRICH HARTMANN IS WIDELY VIEWED AS A FAVORITE BET MANY INDUSTRY OBSERVERS SAID BUT OTHERS SUGGESTED THAT THE ADVISORY BOARD MAY PREFER TO LOOK OUTSIDE THE COMPANY EITHER WAY BECAUSE VEBA IS CONSIDERED A STABLE WELLDIVERSIFIED COMPANY WITH ITS STRATEGIES ALREADY WELL IN PLACE INDUSTRY ANALYSTS SAID THE PERSONAL TRAGEDY OF MR PILTZ'S DEATH SHOULDN'T HAVE A JOLTING EFFECT ON THE CORPORATION MR PILTZ BEGAN WORKING FOR VEBA IN 1961 AND WAS NAMED CHIEF FINANCIAL OFFICER IN 1976 BEING GROOMED BY THE PREVIOUS CHAIRMAN RUDOLF VON BENNIGSENFOERDER TO TAKE OVER THE REINS OF COMMAND MR VON BENNIGSEN'S SUDDEN DEATH IN LATE 1989 HOWEVER PUT MR PILTZ IN THE POST ABOUT A YEAR EARLIER THAN PLANNED MR PILTZ HAS BEEN CREDITED WITH STEPPING UP VEBA'S INTERNATIONALIZATION AND VASTLY IMPROVING THE COMPANY'S INVESTOR RELATIONS VEBA'S HIGH LEVEL OF ACTIVITY IN EASTERN GERMANY AND EASTERN EUROPE IS ALSO ASCRIBED TO MR PILTZ WHO WAS NAMED CHAIRMAN NOV 9 1989 THE DAY OF THE FALL OF THE BERLIN WALL 9304150109 930415 GM AUSTRALIAN LOCOMOTIVE PACT LA GRANGE ILL GENERAL MOTORS CORP SAID IT SIGNED A 700 MILLION AUSTRALIAN DOLLAR US502 MILLION CONTRACT TO SELL 89 LOCOMOTIVES TO THE STATE RAIL AUTHORITY OF NEW SOUTH WALES AUSTRALIA UNDER TERMS OF THE PACT GM'S ELECTROMOTIVE DIVISION WILL ALSO BE RESPONSIBLE FOR MAINTAINING THE LOCOMOTIVES FOR 15 YEARS SUCH AN ARRANGEMENT IS AN INDUSTRY FIRST GM SAID ELECTROMOTIVE IN PARTNERSHIP WITH ITS AUSTRALIAN LICENSEE CLYDE ENGINEERING WILL BEGIN DELIVERING THE NEW LOCOMOTIVES TO THE STATE AGENCY IN EARLY 1994 9304150108 930415 FOREIGN EXCHANGE DOLLAR MOVES HIGHER AS DEALERS SUGGEST SELLING LATELY MAY HAVE BEEN OVERDONE BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR CLIMBED STEADILY YESTERDAY WITH DEALERS SAYING THAT TECHNICAL INDICATORS SUGGESTED THE CURRENCY'S RECENT DECLINES MAY HAVE BEEN OVERDONE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15935 MARKS UP FROM 15820 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11388 YEN UP FROM 11340 YEN STERLING WAS TRADING AT 15520 DOWN FROM 15580 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 15958 MARKS AND AT 11384 YEN WE'VE COME DOWN QUITE A BIT RECENTLY AND THERE'S A SENSE THE DOLLAR MIGHT HAVE GOTTEN OVERSOLD SAID LEE KASSLER A SENIOR TRADER AT NATIONAL WESTMINSTER USA DEALERS SAID THE DOLLAR'S UPSWING YESTERDAY WAS MOST PRONOUNCED AGAINST EUROPEAN CURRENICES AS PLAYERS TOOK PROFITS ON THE DOLLAR'S SHARP DECLINE TUESDAY FOLLOWING A SURPRISING 1 DROP IN US RETAIL SALES DURING MARCH ADDITIONALLY SOME PLAYERS NOW BELIEVE THE DOLLAR IS APPROACHING GOOD LONGTERM BUYING LEVELS AGAINST THE MARK ACCORDING TO GEOFFREY DENNIS A STRATEGIST AT JAMES CAPEL & CO DESPITE A RECENT STRING OF ECONOMIC DATA SUGGESTING THE PACE OF THE RECOVERY IS SLACKENING THERE IS LONGTERM BULLISHNESS ABOUT THE US MR DENNIS SAID BY CONTRAST GERMAN DATA HAVE BEEN HORRENDOUS RECENTLY SAID LYNN TIERNEY A VICE PRESIDENT AT SHAWMUT BANK OF BOSTON NA THE LATEST REMINDER OF GERMANY'S ECONOMIC TROUBLES CAME YESTERDAY WHEN THE FEDERAL STATISTICS OFFICE REPORTED THAT WESTERN GERMAN RETAIL SALES FELL 8 IN FEBRUARY MORE THAN EXPECTED TRADERS SAID THE DOLLAR'S RISE AGAINST THE YEN YESTERDAY WAS PROMPTED MOSTLY BY UNCERTAINTY OVER THE OUTCOME OF A MEETING OF GROUP OF SEVEN FINANCE AND FOREIGN MINISTERS IN TOKYO THEY SAID PERCEPTIONS THAT THE GROUP OF SEVEN HAS WANTED THE YEN TO APPRECIATE AS ONE WAY TO RESTRAIN JAPAN'S BULGING TRADE SURPLUSES HAVE PROPELLED THE YEN'S RECENT ADVANCE THE GROUP OF SEVEN IS COMPRISED OF THE US BRITAIN JAPAN GERMANY FRANCE ITALY AND CANADA BUT NOW THE MARKET IS LEERY ABOUT WHAT GROUP MINISTERS MIGHT SAY ABOUT THE YEN SAID MS TIERNEY AND THIS PROVIDED AN EXCUSE TO TAKE PROFITS NO ONE KNOWS WHAT THEY WILL SAY MS TIERNEY ADDED IN THE PAST OFFICIAL COMMENTS HAVE HAD SIGNIFICANT IMPACT ON THE YEN PLAYERS HAVE USED SUCH COMMENTS TO TRY TO DETERMINE GOVERNMENT PREFERENCES ON EXCHANGERATE LEVELS ON FEB 19 TREASURY SECRETARY LLOYD BENTSEN SAID HE WOULD LIKE TO SEE A STRONGER YEN AND THE JAPANESE CURRENCY SURGED MOREOVER PLAYERS SAID JAPANESE OFFICIALS SEEM INCREASINGLY CONCERNED WITH THE YEN'S STEADY GAINS RUMORS OF INTERVENTION BY THE BANK OF JAPAN IN RECENT DAYS HAVE KEPT THE MARKET FROM PUSHING THE YEN STILL HIGHER PARTICIPANTS SAID PEOPLE HAVE CONCLUDED THE BANK OF JAPAN MIGHT WANT TO MAKE A STAND AT 11250 YEN SAID MR DENNIS OF JAMES CAPEL MEANWHILE STERLING ROSE AGAINST THE MARK ON NEWS OF A STRONGERTHANEXPECTED INCREASE IN BRITISH INDUSTRIAL PRODUCTION IN FEBRUARY OUTPUT ROSE A SEASONALLY ADJUSTED 16 FROM JANUARY COMPARED WITH MARKET EXPECTATIONS OF A 07 RISE THE DATA ADDED TO THE SUBSTANTIAL EVIDENCE THAT WE'RE GETTING GROWTH IN THE UK ECONOMY MR DENNIS SAID MS TIERNEY SAID THAT DATA ALSO INCREASE THE LIKELIHOOD THAT BRITISH INTEREST WILL HOLD STEADY IN THE NEAR TERM WHICH SHE SAID IS BULLISH FOR STERLING MR DENNIS AND MS TIERNEY SAID THEY EXPECT THAT GROWING CONFIDENCE ABOUT THE UK RECOVERY WILL CONTINUE TO BOLSTER STERLING AGAINST THE MARK IN THE NEXT SEVERAL DAYS BUT BOTH ALSO SAID THAT 250 MARKS LIKELY WILL BE A SIGNIFICANT TECHNICAL RESISTANCE POINT FOR THE POUND PLAYERS SAID THE OUTLOOK FOR THE DOLLAR IN THE NEXT FEW DAYS IS LESS CLEAR MR DENNIS SAID HE DOESN'T EXPECT ANY STRONG COMMENTS ABOUT CURRENCIES TO EMERGE FROM THE GROUP OF SEVEN MEETING IN PART BECAUSE OF POSSIBLE DISAGREEMENTS OVER WHETHER THE YEN SHOULD CONTINUE TO RISE 9304150107 930415 SHE CAN BE GRATEFUL THEY DIDN'T GIVE HER EXTRA HEADS OR LIMBS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ALICIA MUNNELL HOPED FOR A LITTLE ATTENTION WHEN SHE LANDED A JOB IN THE CLINTON TREASURY DEPARTMENT BUT SHE NEVER EXPECTED THIS IN THE LATEST ISSUE OF THE SUPERMARKET TABLOID THE STAR MS MUNNELL GETS NEARLY A FULL PAGE COMPLETE WITH A SEVENINCHHIGH PHOTO AND A HEADLINE THAT IDENTIFIES HER AS CLINTON'S 2 ECONOMIC ADVISER THAT OUTSHINES VANNA WHITE WHO ON THE SAME PAGE GETS ONLY A TWOINCH PHOTO DOC ORDERS VANNA QUIT SUNTANNING IT'S AN UNUSUAL PLACE TO FIND A WELLESLEY GRADUATE AND HARVARD PHD WHO WAS SENIOR VICE PRESIDENT OF THE BOSTON FEDERAL RESERVE BANK FOR THE PAST DECADE WHAT CAUGHT THE STAR'S EYE IT SAYS IS THAT HER PET IDEA TO SOLVE THE NATION'S DEFICIT IS TO GRAB 15 PERCENT OUT OF YOUR IRA ACCOUNTS AND PENSION PLANS THE STAR'S ARTICLE HAS A GERM OF TRUTH MS MUNNELL 50 YEARS OLD WROTE LAST YEAR IN A BOSTON FED PUBLICATION THAT INDIVIDUALS' TAXABLE INCOME SHOULD INCLUDE CONTRIBUTIONS EMPLOYERS MAKE TO PENSION FUNDS NOW THOSE CONTRIBUTIONS AREN'T TAXED UNTIL WITHDRAWAL SHE PROPOSED A ONETIME 15 TAX ON ALL PENSIONFUND ASSETS AND A 15 ANNUAL TAX ON PENSION EARNINGS RETIREES WOULD THEN DRAW THEIR PENSIONS TAXFREE BUT SHE NEVER MENTIONED INDIVIDUAL RETIREMENT ACCOUNTS AND HER IDEA ISN'T PART OF THE CLINTON ECONOMIC PLAN MS MUNNELL ISN'T TALKING SHE'S AWAITING SENATE CONFIRMATION AS ASSISTANT TREASURY SECRETARY FOR ECONOMIC POLICY A GOOD JOB TO BE SURE THOUGH NOT THE PRESIDENT'S NO 2 ECONOMIC ADVISER AS THE STAR HAS IT W THOMAS KELLY AN EMPLOYEEBENEFITS AND INSURANCECOMPANY CONSULTANT FROM MALVERN PA GOT WIND OF HER FED ARTICLE HE HAS FLOODED REPORTERS AND WASHINGTON OFFICIALS WITH LETTERS OF OUTRAGE ON BEHALF OF THE SAVERS AND INVESTORS LEAGUE OF WHICH HE IS THE PRESIDENT AND PRIMARY BACKER ANY PERSON WITH ONE SCINTILLA OF COMMON SENSE MR KELLY WROTE TREASURY SECRETARY LLOYD BENTSEN LET ALONE ANY SOUND ECONOMIC SENSE WOULD VIOLENTLY DISAGREE WITH MUNNELL AFTER SEEING A FEW OF MR KELLY'S LETTERS HENRY AARON A BROOKINGS INSTITUTION ECONOMIST WROTE A REPLY I TRUST THAT YOUR LETTER WILL BE RECOGNIZED AS THE WILD AD HOMINEM ALLEGATIONS OF SOMEONE SPEAKING FOR A SPECIAL INTEREST WHO LACKING SOLID ARGUMENTS RESORTED TO MUD AND HE HADN'T EVEN SEEN THE STAR YET MR KELLY UNDAUNTED ISSUED A NEWS RELEASE SUMMARIZING MR AARON'S LETTER 9304150106 930415 ROYAL TRUSTCO POSTS 6744 MILLION LOSS FOR 1992 AND WARNS OF MORE BAD NEWS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ROYAL TRUSTCO LTD THE TROUBLED FINANCIALSERVICES ARM OF THE EMPIRE CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN POSTED A HEFTY NET LOSS FOR 1992 AND WARNED OF MORE BAD NEWS TO COME ROYAL TRUSTCO WHICH HAS AGREED TO SELL THE BULK OF ITS REMAINING OPERATIONS TO ROYAL BANK OF CANADA PUT THE LOSS AT 852 MILLION CANADIAN DOLLARS US6744 MILLION INCLUDING C421 MILLION OF LOAN LOSS PROVISIONS A C93 MILLION WRITEOFF OF GOOD WILL AND A C193 MILLION LOSS FROM ITS DISCONTINUED US BANKING OPERATIONS THE COMPANY SAID MORE RESTRUCTURING CHARGES AND LIQUIDATION COSTS COULD FOLLOW IT ALSO NOTED IT NEEDS TO FIND FUNDS TO RETIRE A TOTAL OF C164 MILLION OF DEBENTURES DUE THIS YEAR AS WELL AS FINANCE THE BUYBACK FROM ROYAL BANK OF ABOUT C321 BILLION OF LOANS ALAIN TUCHMAIER AN ANALYST WITH MCLEAN MCCARTHY LTD IN TORONTO SAID HE HAD EXPECTED ROYAL TRUSTCO TO REPORT LOAN LOSSES OF ABOUT C400 MILLION TO C500 MILLION IN THE FOURTH QUARTER RATHER THAN THE C140 MILLION ACTUALLY REPORTED BUT HE SAID HE EXPECTS ROYAL BANK TO EMERGE FROM THE TRANSACTION WITH A RELATIVELY CLEAN ASSET PORTFOLIO AND FOR MOST OF THE UNDERPERFORMING LOANS TO REMAIN WITH ROYAL TRUSTCO ESSENTIALLY WHAT YOU'LL BE LEFT WITH IS A LOAN COLLECTION COMPANY SAID MR TUCHMAIER NEITHER HE NOR DOMINION BOND RATING SERVICE A TORONTO CREDIT RATING AGENCY EXPECT COMMON OR PREFERRED SHAREHOLDERS TO RECOVER ANYTHING FOLLOWING THE LIQUIDATION OF ROYAL TRUSTCO'S REMAINING LOAN PORTFOLIO WHILE ROYAL TRUSTCO REMAINS ONE OF THE MOST TROUBLED PARTS OF THE BRONFMAN GROUP OTHER COMPANIES IN THE EMPIRE ALSO ARE STRUGGLING TO DEAL WITH FALLOUT FROM THE CONTINUING RESTRUCTURING BRASCAN LTD ONE OF THE MAJOR HOLDING COMPANIES IN THE GROUP SAID IT COULD BE FORCED TO SHELL OUT US500 MILLION TO BUY BACK AN ISSUE OF DEBENTURES FROM A GROUP OF BANKS HEADED BY CHEMICAL BANK THE BANKS CLAIM IN A BRITISH COURT ACTION THAT BRASCAN VIOLATED THE TERMS OF THE DEBENTURES BY SELLING ONE OF ITS MAIN ASSETS A 37 STAKE IN CANADIAN BREWING GIANT JOHN LABATT LTD BRASCAN OFFICIALS HAVE SAID THAT THE BOOK VALUE OF THE LABATT HOLDING ACCOUNTED FOR JUST 10 OF THE COMPANY'S ASSETS WHILE THE PROCEEDS FROM THE SALE OF C993 MILLION REPRESENT ABOUT 15 OF BRASCAN'S ASSETS ANALYSTS HAVE NOTED THAT RAISING FUNDS IN THE PRIVATE DEBT MARKETS TO REPLACE THE ISSUE COULD BE DIFFICULT FOR BRASCAN BUT THEY NOTED THAT THE PROCEEDS FROM THE LABATT SALE ITSELF WOULD BE MORE THAN ENOUGH TO BUY BACK THE DEBENTURES IF THE COURT SUPPORTS THE BANKING GROUP'S CLAIMS IN A SEPARATE ANNOUNCEMENT HEES INTERNATIONAL BANCORP INC ANOTHER MAJOR BRONFMAN HOLDING COMPANY DISCLOSED ANOTHER STEP IN THE GRADUAL DISMANTLING OF THE LABYRINTHINE CORPORATE EMPIRE HEES AND EDPER ENTERPRISES LTD PLAN TO ELIMINATE ONE OF FIVE PRIVATE HOLDING COMPANIES THAT HAVE BEEN THE TARGET OF FREQUENT CRITICISM FROM ANALYSTS AND INVESTORS THE AGREEMENT BETWEEN HEES AND EDPER ELIMINATES RECIPROCAL OBLIGATIONS TO FINANCE ADDITIONAL PURCHASES OF STOCK OF BRASCAN WHICH THE TWO SENIOR COMPANIES JOINTLY CONTROL THROUGH BRASCAN HOLDINGS IT ALSO GIVES HEES ACCESS TO A MORE STABLE DIVIDEND FLOW FROM BRASCAN UNDER THE PREVIOUS ARRANGEMENT WITH EDPER HEES WOULD RECEIVE NO DIVIDENDS WHEN BRASCAN'S EARNINGS FELL BUT IS NOW GUARANTEED A MINIMUM OF ABOUT C38 MILLION ANNUALLY THE TWO COMPANIES WILL STILL JOINTLY CONTROL 49 OF BRASCAN HEES AND EDPER OFFICIALS SAID THE MOVE IS THE FIRST STEP TOWARD CONSOLIDATING THEIR MYRIAD OF PUBLIC AND CLOSELY HELD HOLDING COMPANIES WITHIN THE BRONFMAN GROUP INTO A SINGLE PUBLICLY TRADED ENTITY THE WHOLE RESTRUCTURING PROCESS WHICH ALSO INCLUDES SALES OF SOME OPERATING ASSETS SUCH AS LABATT IS EXPECTED TO TAKE THREE TO FIVE YEARS TO COMPLETE HEES EDPER AND BRASCAN ARE INDIRECTLY CONTROLLED BY PETER AND EDWARD BRONFMAN COUSINS OF MONTREAL'S DISTILLING DYNASTY THE TWO BRONFMAN FAMILIES HAVE NO BUSINESS OPERATIONS IN COMMON LARRY M GREENBERG CONTRIBUTED TO THIS ARTICLE 9304150105 930415 TECHNOLOGY ONE GENETICALLY ENGINEERED VACCINE SHOWS MOST PROMISE IN FIGHTING CANCER BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS RESEARCHERS HERE SAY THEY HAVE DISCOVERED A WAY TO MAKE CANCER VACCINES THAT SHOW PROMISE OF WORKING BETTER THAN ONES NOW BEING TESTED IN HUMANS CANCER VACCINES ARE DESIGNED TO IMMUNIZE PATIENTS AGAINST THEIR OWN TUMORS IN THE FIRST COMPREHENSIVE ANIMAL EXPERIMENTS TO COMPARE THE EFFECTIVENESS OF MANY GENETICALLY ENGINEERED CANCER VACCINES THE RESEARCHERS FOUND THAT JUST ONE STOOD OUT AS PARTICULARLY POTENT IT INCORPORATES GRANULOCYTEMACROPHAGE COLONY STIMULATING FACTOR OR GMCSF A BIOLOGICALLY ENGINEERED BOOSTER OF THE BODY'S IMMUNE SYSTEM ADDITIONALLY THE SCIENTISTS LED BY GLENN DRANOFF AND RICHARD MULLIGAN AT THE WHITEHEAD INSTITUTE FOR BIOMEDICAL RESEARCH AN AFFILIATE OF MASSACHUSETTS INSTITUTE OF TECHNOLOGY DISCOVERED THAT TUMORFIGHTING EFFECTS PREVIOUSLY OBSERVED IN ANIMAL STUDIES OF CANCER VACCINES MAY HAVE BEEN ATTRIBUTED TO THE WRONG THINGS LEADING TO FALSE HOPES ABOUT THE VACCINES' POTENTIAL IN HUMANS IF SUCH VACCINES PROVE EFFECTIVE THE STAKES MAY BE CONSIDERABLY RAISED IN A LONGSTANDING PATENT DISPUTE OVER RIGHTS TO THE GMCSF GENE THE MAIN CONTENDERS IN THE US FOR RIGHTS TO THE HUMAN VERSION OF THE GENE ARE IMMUNEX CORP SEATTLE AND SANDOZ LTD A SWISS DRUG MAKER THAT HAS LICENSED RIGHTS TO THE GENE FROM GENETICS INSTITUTE INC CAMBRIDGE MASS THE RESEARCHERS' WORK PUBLISHED IN TODAY'S ISSUE OF THE PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES IS BASED ON THE IDEA OF FIRING UP THE BODY'S IMMUNE SYSTEM TO ATTACK TUMOR CELLS SUCH CELLS ARE THOUGHT TO PRODUCE PROTEINS THAT ARE DIFFERENT FROM THOSE OF NORMAL CELLS THE IMMUNE SYSTEM'S WHITE BLOOD CELLS ATTACK CANCER CELLS AFTER DETECTING THESE ODDBALL PROTEINS BUT SOMETIMES THE DETECTION SYSTEM FAILS ALLOWING TUMOR CELLS TO MULTIPLY UNCHECKED SCIENTISTS HAVE BEEN TRYING TO OVERCOME THIS DEFICIENCY BY INJECTING INTO CANCER PATIENTS TUMOR CELLS THAT HAVE BEEN ALTERED TO TRIGGER A BODYWIDE IMMUNE ATTACK ON ALL SUCH CELLS ONE HOPE FOR SUCH VACCINES IS TO PREVENT RECURRENCE OF CANCER IN PATIENTS TREATED WITH RADIATION OR CHEMOTHERAPY RESEARCHERS LED BY STEVEN ROSENBERG AT THE NATIONAL CANCER INSTITUTE FOR EXAMPLE HAVE BEEN TESTING GENETICALLY ALTERED TUMOR CELLS IN PATIENTS WITH MALIGNANT MELANOMA A DEADLY FORM OF SKIN CANCER THEY EXTRACTED THE PATIENTS' OWN TUMOR CELLS AND INSERTED INTO THEM GENES FOR IMMUNEACTIVATING PROTEINS CALLED TUMOR NECROSIS FACTOR OR TNF AND INTERLEUKIN2 ALSO KNOWN AS IL2 THEN THEY REINJECTED THE CELLS INTO THE PATIENTS DR ROSENBERG WHO COULDN'T BE REACHED FOR COMMENT HASN'T REPORTED YET ON THE VACCINES' PERFORMANCE THE WHITEHEAD INSTITUTE TEAM FOUND THAT TUMOR CELLS CONTAINING THE GMCSF GENE WORKED BETTER AT FIGHTING MELANOMA IN MICE THAN DID SIMILAR CELLS CONTAINING TNF IL2 AND OTHER POTENTIAL IMMUNEACTIVATORS THAT WERE TRIED THE VACCINE BASED ON GMCSF BOTH HELPED TO PREVENT MELANOMA FROM OCCURRING IN MICE THAT LATER WERE INJECTED WITH TUMOR CELLS AND TO INDUCE IMMUNE ATTACKS ON PREEXISTING TUMORS IN THE ANIMALS THE RESEARCHERS REPORTED ANTICANCER DRUGS THAT WORK WELL IN ANIMALS OFTEN HAVE PROVED DISAPPOINTING IN HUMAN PATIENTS AND THE WHITEHEAD TEAM CAUTIONED THAT MORE RESEARCH WILL BE NEEDED TO SHOW CONCLUSIVELY THAT THE GMCSF VACCINE IS TRULY SUPERIOR BUT THE WHITEHEAD'S DR MULLIGAN SAID THE TEAM HAS TESTED ABOUT 25 VARIATIONS OF THE VACCINE IN MICE AND IS CONFIDENT THAT THE ONE BASED ON GMCSF IS A GOOD ONE TO USE IN HUMAN TESTS ADDITIONALLY THE RESEARCHERS DISCOVERED THAT TUMOR CELLS INSERTED WITH IL2 GENES DID INDEED PRODUCE AN IMMUNE RESPONSE IN MICE BUT ONLY A LOCALIZED ONE THAT DIDN'T LEAD TO A BODYWIDE ATTACK ON CANCER CELLS THE RESEARCHERS CONCLUDED THAT IMMUNESTIMULATING EFFECTS PREVIOUSLY IDENTIFIED IN ANIMAL TESTS OF VACCINES BASED ON IL2 AND OTHER SUBSTANCES MIGHT HAVE BEEN DUE MORE TO THIS LOCALIZED REACTION THAN TO A BROADER IMMUNE STIMULATION THE RESEARCHERS ALSO FOUND THAT THEY COULD PROTECT MICE AGAINST CANCER BY GIVING THEM BIOENGINEERED TUMOR CELLS THAT WERE TREATED WITH LOWLEVEL RADIATION PREVENTING THE CELLS FROM MULTIPLYING EXPERIMENTAL CANCER VACCINES BASED ON TUMOR CELLS USUALLY AREN'T IRRADIATED AND THUS POSE A SMALL RISK OF WORSENING PATIENTS' CANCER DR MULLIGAN SAID THE WHITEHEAD TEAM'S DISCOVERY MAY ELIMINATE THAT RISK GMCSF IS KNOWN TO BOOST THE GROWTH OF SOCALLED ANTIGENPRESENTING CELLS WHICH PLAY A PIVOTAL ROLE IN TRIGGERING IMMUNE CELLS TO ATTACK THE WHITEHEAD'S DR DRANOFF SAID THE VACCINE BASED ON GMCSF MAY WORK BETTER THAN OTHERS BY REVVING UP THESE CRUCIAL IMMUNE TRIGGERS AT JUST THE RIGHT TIME WHEN THEY COME INTO CONTACT WITH THE TUMOR CELLS THE WHITEHEAD SCIENTISTS SAID THAT COLLABORATORS AT JOHNS HOPKINS UNIVERSITY HOPE TO BEGIN TESTING A VERSION OF THE NEW VACCINE IN CANCER PATIENTS WITHIN SIX MONTHS 9304150104 930415 INTERNATIONAL YELTSIN SAYS HE'LL RESIGN ONLY IF MOST VOTE AGAINST HIM AND BACK CONGRESS BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW FACING A CRUCIAL CONFIDENCE VOTE IN 10 DAYS RUSSIAN PRESIDENT BORIS YELTSIN IS DEFINING DEFEAT VERY NARROWLY SIGNALING THAT HE INTENDS TO REMAIN IN HIS POST MR YELTSIN SAID HE WILL RESIGN ONLY IF MOST PEOPLE VOTE AGAINST HIM AND SIMULTANEOUSLY GIVE RESOUNDING SUPPORT TO THE CONGRESS BY VOTING AGAINST EARLY PARLIAMENTARY ELECTIONS OTHERWISE EVEN IF HE LOSES THE CONFIDENCE VOTE HE WILL REMAIN IN OFFICE AT LEAST UNTIL NEW ELECTIONS WHICH HE EXPECTS NEXT AUTUMN HE SAID THERE SHOULD BE NO VACUUM OF POWER DURING THIS PERIOD HE SAID AT A NEWS CONFERENCE UNTIL THE ELECTIONS THE PRESIDENT SHOULD GO ON WORKING IF THE PRESIDENT RECEIVES SUPPORT DURING THE REFERENDUM HIS ACTIONS WILL BE MORE RESOLUTE THE REFERENDUM SCHEDULED FOR APRIL 25 INCLUDES FOUR QUESTIONS THAT WERE CAREFULLY WORDED BY THE CONGRESS OF PEOPLE'S DEPUTIES IN AN ATTEMPT TO STACK THE DECK AGAINST MR YELTSIN THEY ARE DO YOU TRUST IN THE PRESIDENT DO YOU SUPPORT THE ECONOMIC AND SOCIAL POLICIES OF THE PRESIDENT DO YOU WANT EARLY PRESIDENTIAL ELECTIONS DO YOU WANT EARLY PARLIAMENTARY ELECTIONS THE CONGRESS ALSO REQUIRED MR YELTSIN TO RECEIVE SUPPORT FROM MORE THAN 50 OF ELIGIBLE VOTERS REGARDLESS OF TURNOUT TO CLAIM LEGAL VICTORY A NEAR IMPOSSIBILITY MR YELTSIN HAS CHALLENGED THIS IN THE CONSTITUTIONAL COURT AND HIS AIDES ARE CONFIDENT THEY WILL GET A FAVORABLE RULING AT LEAST IN REGARD TO THE FIRST TWO QUESTIONS THE REFERENDUM RISKS DRAWING A LOW TURNOUT IN PART BECAUSE IT SEEMS SO COMPLICATED TRYING TO SIMPLIFY THE PROCESS AND INCREASE THE VOTE FAVORABLE TO HIM MR YELTSIN HAS URGED PEOPLE TO VOTE YES TO ALL FOUR QUESTIONS HIS SUPPORTERS ARE ADVOCATING A YES VOTE TO THREE QUESTIONS AND A NO TO EARLY PRESIDENTIAL ELECTIONS PRAVDA THE FORMER COMMUNIST PARTY DAILY URGES YES TO THE FIRST TWO AND NO TO BOTH EARLY ELECTIONS OUTWARDLY THE POLITICAL CRISIS IS MANIFEST IN THE CENTRAL AUTHORITIES OF THE COUNTRY HAVING QUARRELED AND FAILING TO COME TO TERMS MR YELTSIN TOLD REPORTERS YESTERDAY BUT IN REALITY EVERYTHING IS FAR MORE DEEPSEATED AND SERIOUS WHAT IT ALL AMOUNTS TO IN FACT IS THAT TWO IRRECONCILABLE POSITIONS ON THE PAST PRESENT AND FUTURE OF RUSSIA HAVE COME INTO CONFLICT INTO OPPOSITION AT THE ROOT OF THE CONFLICT MR YELTSIN SAID IS THE RESISTANCE OF HOLDOVER SOVIET BUREAUCRATS TO DISTRIBUTING PROPERTY TO THE PEOPLE THE OPPONENTS OF REFORM HE SAID OFFER RECIPES FOR DEVELOPMENT THAT LEAD TO ONE CONCLUSION RUSSIA IS DEAD AND DONE WITH IT CAN BE WRITTEN OFF AS FAR AS WORLD DEVELOPMENT WORLD POLITICS AND ECONOMICS AND THE WORLD BALANCE OF POWER ARE CONCERNED MR YELTSIN'S OPPONENTS HURL SIMILAR ACCUSATIONS BACK AT HIM ON TUESDAY CONGRESS CHAIRMAN RUSLAN KHASBULATOV ACCUSED THE GOVERNMENT OF TAPPING PHONES AND USING OTHER REPRESSIVE METHODS THE POLITICAL REGIME HAS BEEN TRANSFORMED OPENLY INTO A DICTATORIAL REGIME MR KHASBULATOV TOLD A PUBLIC MEETING MR YELTSIN'S VICE PRESIDENT ALEXANDER RUTSKOI HAS ALIGNED AGAINST HIM MR RUTSKOI AN AFGHANISTAN WAR HERO WITH OPEN PRESIDENTIAL AMBITIONS HAS PUBLICLY CRITICIZED MR YELTSIN'S ECONOMIC REFORMS AND SOME OF HIS ADVISERS MR YELTSIN HASN'T DEMANDED THE VICE PRESIDENT'S RESIGNATION BUT IMPLIED THAT IF HE WINS THE REFERENDUM MR RUTSKOI SHOULD GO RUTSKOI IS CATEGORICALLY NOT IN AGREEMENT WITH REFORM MR YELTSIN SAID HOW CAN A VICE PRESIDENT WORK WHO IS NOT IN AGREEMENT WITH THE PRESIDENT MR YELTSIN HAS BEEN FIGHTING BACK ON A STUMPING TOUR AROUND THE COUNTRY ARMED WITH A SLEW OF CAMPAIGN PROMISES HE REITERATED SOME OF THOSE PROMISES AT THE NEWS CONFERENCE INCLUDING MORECONSISTENT ECONOMIC REFORMS LEGAL PROTECTION FOR INDIVIDUAL AND PRIVATE PROPERTY RIGHTS THE CURTAILING OF SUBSIDIES TO STATE INDUSTRY AND OTHER AILING SECTORS AND SOCIAL PROTECTION FOR THE NEEDY HE ALSO PLEDGED MORE INDEPENDENCE FOR REGIONS WITHIN RUSSIA PROMPTING THE LEADERS OF RUSSIA'S 21 SEMIAUTONOMOUS ETHNIC REPUBLICS YESTERDAY TO AGREE TO TAKE PART IN THE REFERENDUM MR YELTSIN ALSO DEBUNKED WHAT HE CALLED THE MYTH OF AN AVALANCHELIKE COLLAPSE OF INDUSTRIAL PRODUCTION CONTENDING THAT PRODUCTIVITY HAD STABILIZED IN RECENT MONTHS CITING INFLATION AS THE MAIN PROBLEM HE SAID THAT ALSO APPEARS TO BE IMPROVING THE MONTHLY INFLATION RATE HAS DROPPED TO 17 IN MARCH FROM 25 IN FEBRUARY AND 27 IN JANUARY THE TENDENCY IS CLEAR HE SAID 9304150103 930415 CLINTON FACES TOUGH TASK IN WINNING LARGER CONTRIBUTIONS FOR RUSSIAN AID BY CARLA ANNE ROBBINS AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO PRESIDENT CLINTON WHO WANTS TO PROVIDE AN ADDITIONAL 18 BILLION IN US AID TO RUSSIA AND OTHER FORMER SOVIET REPUBLICS IS HAVING A TOUGH TIME CONVINCING OTHERS TO FOLLOW HIS LEAD EVEN AS THE FOREIGN AND FINANCE MINISTERS FROM THE GROUP OF SEVEN INDUSTRIAL NATIONS WERE GETTING READY TO SIT DOWN WEDNESDAY FOR THE START OF A TWODAY EMERGENCY MEETING HERE ON RUSSIA MR CLINTON WAS DIALING UP SOME OF THEIR BOSSES TO LOBBY FOR LARGER CONTRIBUTIONS THE PRESIDENT AND HIS AIDES WERE GOING THROUGH THE SAME DRILL WITH THE US CONGRESS SEEKING TO WIN SUPPORT FOR MORE SPENDING ON RUSSIA THE DETAILS OF THE G7 PACKAGE WERE TO BE ANNOUNCED IN TOKYO THURSDAY THE OVERALL PACKAGE OF MULTILATERAL LOANS BILATERAL GRANTS AND CREDITS AND DEBT FORGIVENESS IS LIKELY TO TOP 30 BILLION INCLUDING AT LEAST 15 BILLION THAT THE INTERNATIONAL MONETARY FUND WORLD BANK AND EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT PLAN TO LEND RUSSIA ON SOMEWHAT EASIER TERMS THAN IN THE PAST THE 18 BILLION US CONTRIBUTION ABOUT 15 BILLION OF WHICH WOULD GO TO RUSSIA WOULD BE IN ADDITION TO THE 16 BILLION PACKAGE MR CLINTON UNVEILED 11 DAYS AGO IN VANCOUVER BRITISH COLUMBIA AFTER HIS SUMMIT WITH RUSSIAN PRESIDENT BORIS YELTSIN OF THAT 18 BILLION MOST IF NOT ALL OF WHICH REQUIRES CONGRESSIONAL APPROVAL 500 MILLION WOULD BE EARMARKED FOR A NEW FUND TO HELP PRIVATIZE LARGE INDUSTRIES OTHER FUNDS WOULD HELP REPAIR LEAKY RUSSIAN OIL WELLS AND GAS PIPELINES RESETTLE RUSSIAN MILITARY PERSONNEL IMPROVE NUCLEAR SAFETY ENCOURAGE SMALL BUSINESSES EXPAND STUDENTEXCHANGE AND TECHNICALEXCHANGE PROGRAMS AND DISMANTLE NUCLEAR WEAPONS MR CLINTON'S FISCAL 1994 BUDGET INCLUDES 11 BILLION IN NEW AID TO THE FORMER SOVIET REPUBLICS SOME 700 MILLION LESS THAN THE NEW PLEDGE US OFFICIALS WOULDN'T SAY WHERE THE NEW MONEY WOULD COME FROM OFFICIALS STRESSED AS LATE AS WEDNESDAY NIGHT THAT THE NUMBERS FOR THE OVERALL G7 PACKAGE WERE CHANGING HOURLY AS THE LOBBYING PROCESS CONTINUED IN CLOSEDDOOR SESSIONS THE G7 INCLUDES THE US JAPAN GERMANY BRITAIN FRANCE CANADA AND ITALY EVEN THE LATEST NUMBERS MAY NOT BE FINAL TREASURY SECRETARY LLOYD BENTSEN TOLD REPORTERS THAT HE EXPECTED MR CLINTON TO DISCUSS THE NEED FOR ADDITIONAL JAPANESE CONTRIBUTIONS BEYOND THE 18 BILLION TOKYO PLEDGED THIS WEEK WHEN HE MEETS WITH JAPANESE PRIME MINISTER KIICHI MIYAZAWA IN WASHINGTON TOMORROW THE PRESIDENT HOPES THAT THEY'LL PARTICIPATE WITH HIM AND THE OTHER G7 COUNTRIES MR BENTSEN SAID THE US STRATEGY SAY US OFFICIALS HAS BEEN TO LEAD BY EXAMPLE WHILE THEY TRY TO LEVERAGE MORE AID THE US PLEDGE OF 500 MILLION FOR A NEW PRIVATIZATION FUND FOR EXAMPLE IS CONTINGENT ON THE OTHER MEMBERS ANTEING ENOUGH TO MEET A 2 BILLION TARGET IT ALSO IS INTENDED TO ENCOURAGE ANOTHER 2 BILLION CONTRIBUTION FOR THE FUND FROM THE WORLD BANK AND EUROPEAN DEVELOPMENT BANK EVEN WITH SUCH INCENTIVES THE SELL HASN'T BEEN EASY WHEN SECRETARY OF STATE WARREN CHRISTOPHER MADE HIS PITCH AT THE FIRST CLOSEDDOOR SESSION WARNING OF DIRE CONSEQUENCES IF MR YELTSIN FAILS IN HIS REFORM EFFORT THE RESPONSE WAS LESS THAN OVERWHELMING SIX SEPARATE FOREIGN MINISTERS AND THEN SIX FINANCE MINISTERS ROSE TO RECITE ALL THE CONTRIBUTIONS THEIR COUNTRIES ALREADY HAD MADE TO SUPPORT RUSSIAN REFORM AND TO EXPLAIN WHY GIVEN THE TOUGH ECONOMIC TIMES AT HOME IT WOULD BE HARD TO DO MORE GERMANY'S FOREIGN MINISTER KLAUS KINKEL LATER SAID HIS COUNTRY HAD REACHED THE BOTTOM LINE WE DON'T HAVE MUCH ROOM FOR MANEUVERING LEFT THERE ARE OTHER CONCERNS AS WELL THE GERMAN AND BRITISH FOREIGN MINISTERS EXPRESSED HOPE THAT RUSSIA WOULD CLEAVE MORE CLOSELY TO WESTERN FOREIGN POLICY IN BOSNIA AND THE BALTICS THE JAPANESE WANT TO GET BACK FOUR TINY DISPUTED ISLANDS AND THE ITALIANS PLAN TO REMIND THE RUSSIAN MINISTERS THURSDAY WHEN THEY JOIN THE SESSION OF SOME 40 MILLION IN BAD LOANS US OFFICIALS NEVERTHELESS ARE HOPEFUL THAT BEYOND THE NEW BILATERAL PACKAGES THAT WERE TO BE ANNOUNCED THURSDAY MORE AID WILL BE COMING BEFORE THE PLANNED JULY SUMMIT MEETING OF G7 HEADS OF STATE BRITAIN ANNOUNCED WEDNESDAY THAT IT WOULD EXTEND AN ADDITIONAL 600 MILLION IN EXPORT CREDITS INVESTMENT INSURANCE AND TECHNICAL ASSISTANCE TO RUSSIA LOBBYING FOR RUSSIAN AID IS LIKELY TO CONTINUE LONG PAST THIS WEEK'S MEETING US OFFICIALS ALREADY ARE GIRDING FOR A BATTLE OVER THE PRIVATIZATION FUND IT IS INTENDED TO ENCOURAGE THE SALE OR SHUTDOWN OF LARGE UNPROFITABLE STATE ENTERPRISES BUT A GOOD PART OF THE MONEY WILL HAVE TO GO TO CUSHIONING THE SOCIAL BLOW ESPECIALLY IN ONEINDUSTRY TOWNS BY HELPING TO RETRAIN WORKERS AND WEANING LOCAL HOSPITALS AND SCHOOLS FROM INDUSTRY HANDOUTS CRITICS COULD BRAND THE FUND A WELFARE PROGRAM A TABOO NOT ONLY ON CAPITOL HILL BUT IN G7 COUNTRIES WHICH HAVE THEIR OWN DOMESTIC PROBLEMS BUT WITHOUT SUCH A FUND US OFFICIALS SAY ANY PROPOSAL TO SHUT DOWN RUSSIAN FACTORIES COULD SET OFF A REVOLUTION AGAINST REFORM AND MR YELTSIN IN THE US AT LEAST SOME CONGRESSIONAL DEMOCRATS AREN'T YET CONVINCED BY MR CLINTON BEFORE I WILL BE WILLING TO SUPPORT THIS SUPPLEMENTAL REQUEST FOR RUSSIA I AM GOING TO NEED A LOT MORE EXPLANATION OF WHERE THE MONEY IS COMING FROM EVEN THOUGH I FEEL THERE ARE URGENT NEEDS AND OPPORTUNITIES IN RUSSIA SAID SEN PATRICK LEAHY D VT WHO HEADS THE FOREIGN AID APPROPRIATIONS SUBCOMMITTEE SEPARATELY THE US EXPORTIMPORT BANK IS EXPECTED TO ANNOUNCE TODAY THAT IT HAS SIGNED A FRAMEWORK AGREEMENT WITH RUSSIA OPENING THE DOOR TO 2 BILLION OR MORE IN LOANS AND LOAN GUARANTEES FOR THE PURCHASE OF OIL AND GAS EQUIPMENT AND SERVICES FROM US FIRMS 9304150102 930415 TECHNOLOGY BELL ATLANTIC FUJITSU UNITS SET PARTNERSHIP IN COMPUTER SERVICES PHILADELPHIA BELL ATLANTIC BUSINESS SYSTEMS INTERNATIONAL AND FUJITSU AUSTRALIA LTD SAID THEY FORMED A PARTNERSHIP TO PROVIDE INDEPENDENT COMPUTER SERVICE AND SUPPORT TO COMPANIES IN AUSTRALIA NEW ZEALAND PAPUA NEW GUINEA AND FIJI EACH COMPANY HAS A HALFINTEREST IN A PARTNERSHIP THAT OWNS ACL COMPUTER SERVICES WHICH WILL CONDUCT BUSINESS UNDER THE NAME OF FBA COMPUTER TECHNOLOGY SERVICES FBA WILL PROVIDE HARDWARE SOFTWARE NETWORK AND USAGE SUPPORT FOR LARGE MIDRANGE AND DESKTOP SYSTEMS THE PARTNERSHIP SAID ITS FIRST CUSTOMER IS WESTPAC BANKING CORP OF SYDNEY WITH A FOURYEAR MULTIMILLIONDOLLAR CONTRACT FUJITSU AUSTRALIA WHICH MARKETS COMPUTERS RETAIL AND TELECOMMUNICATIONS EQUIPMENT AND COMPUTER SERVICES IS 20OWNED BY ICL PLC OF BRITAIN AN INFORMATION TECHNOLOGY CONCERN AND 80OWNED BY FUJITSU LTD ONE OF JAPAN'S LEADING MAKERS OF COMPUTERS AND SUPPLIERS OF TELECOMMUNICATIONS EQUIPMENT BELL ATLANTIC BUSINESS SYSTEMS A LEADING INDEPENDENT COMPUTER SERVICE COMPANY IS A UNIT OF BELL ATLANTIC CORP WHICH OWNS LOCAL TELEPHONE COMPANIES IN THE MIDDLE ATLANTIC STATES AND HAS UNITS THAT PROVIDE SOFTWARE AND SYSTEMS INTEGRATION AND FINANCIAL SERVICES 9304150101 930415 STEEL COMPANIES WIN PRICE BOOSTS FOR METAL USED IN APPLIANCES CHICAGO US STEELMAKERS WON SMALL PRICE INCREASES FOR STEEL USED IN APPLIANCES STRENGTHENING THE PROSPECTS FOR HIGHER PRICES FOR THE METAL IN OTHER MARKETS A SPOKESMAN FOR INLAND STEEL INDUSTRIES INC ONE OF THE NATION'S THREE BIG PRODUCERS OF STEEL FOR THE APPLIANCE INDUSTRY SAID STEELMAKERS REACHED THE INCREASES AS PART OF INFORMAL AGREEMENTS WITH APPLIANCE MAKERS COVERING SHIPMENTS THROUGH DEC 31 R WAYNE ATWELL AN ANALYST WITH MORGAN STANLEY SAID THE INCREASES WHICH AVERAGE ABOUT 3 WILL LIKELY BE FOLLOWED BY SIMILAR BOOSTS IN CONTRACTS WITH AUTO MAKERS WHICH SHOULD BE REACHED IN THE NEXT SEVERAL WEEKS HE ALSO EXPECTS AN INCREASE OF 5 IN CONTRACT PRICES NEXT YEAR IN RECENT YEARS STEEL CONTRACT PRICES HAVE BEEN MOSTLY FLAT STEELMAKERS ALSO HAVE ANNOUNCED PRICE INCREASES IN THE SPOT MARKET FOR THE FIRST SECOND AND THIRD QUARTERS OF THIS YEAR STEEL FOR THE APPLIANCE INDUSTRY WHICH USES MOSTLY COLDROLLED AND COATED STEEL RANGING FROM 500 TO 700 A TON ACCOUNTS FOR UNDER 2 OF STEEL SHIPMENTS 9304150100 930415 ECONOMY VEHICLE SALES ROSE EARLY THIS MONTH SOME DATA INDICATE BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT STRONG DEMAND FOR TRUCKS IN EARLY APRIL APPEARED TO SUSTAIN THE SALES REBOUND FOR DOMESTICALLY BUILT VEHICLES THAT BEGAN LATE LAST MONTH INDUSTRY ANALYSTS SAID FORD MOTOR CO AND CHRYSLER CORP WHICH TOGETHER REPRESENT ABOUT 40 OF THE VEHICLE MARKET DIDN'T REPORT EARLY APRIL SALES YESTERDAY HOWEVER BASED ON SALES REPORTED BY GENERAL MOTORS CORP AND SEVERAL JAPANESE AUTO MAKERS ANALYSTS ESTIMATED THE INDUSTRY HIT A SEASONALLY ADJUSTED ANNUAL SALES RATE OF ABOUT 65 MILLION CARS AND 49 MILLION TRUCKS IN THE FIRST 10 DAYS OF APRIL THAT WOULD PUT TOTAL DOMESTIC VEHICLES SALES AT 114 MILLION VEHICLES WELL AHEAD OF THE 109 MILLION RATE FOR THE PREVIOUS 30 DAYS THE CONSUMER BALANCE SHEET HAS DRAMATICALLY IMPROVED WITH DEBT LEVELS DOWN SUBSTANTIALLY AND THAT PROVIDES A LAUNCHING PAD FOR INCREASED SPENDING SAID THOMAS GLAVIN AN AUTO INDUSTRY ANALYST WITH CJ LAWRENCE INC DEMAND HAS CONTINUED TO BE WEAK FOR PASSENGER CARS HOWEVER THEY ARE CLEARLY BEING AFFECTED BY THE SLUGGISH ECONOMY WHILE LIGHT TRUCKS LOOK LIKE WE ARE BACK IN THE 1980S SAID CHRISTOPHER CEDERGREN AN AUTO INDUSTRY ANALYST FOR AUTOPACIFIC GROUP INC GM REPORTED ITS SALES OF DOMESTICALLY PRODUCED CARS FELL 08 WHILE DOMESTIC TRUCK SALES SURGED 253 THE AUTO MAKER SOLD 44279 TRUCKS IN EARLY APRIL UP FROM 35351 TRUCKS A YEAR EARLIER LIKEWISE TOYOTA MOTOR CORP'S TRUCK SALES JUMPED 30 IN EARLY APRIL AS THE JAPANESE AUTO MAKER SOLD 6029 TRUCKS UP FROM 4630 TRUCKS A YEAR EARLIER UNLIKE GM TOYOTA'S CAR SALES ALSO WERE ROBUST INCREASING 39 IN EARLY APRIL A GAIN THAT ANALYSTS ATTRIBUTED TO A RECOVERING CALIFORNIA ECONOMY WHERE THE JAPANESE ACCOUNT FOR MORE THAN HALF THE AUTOMOBILE MARKET ANOTHER JAPANESE MANUFACTURER NISSAN MOTOR CO SAID ITS CAR SALES INCREASED 22 WHILE ITS TRUCK SALES JUMPED 137 FOR THE PERIOD HONDA MOTOR CO WHICH HAS BEEN LOSING MARKET SHARE IN RECENT MONTHS REPORTED SALES OF ITS DOMESTICALLY PRODUCED CARS FELL 69 IN EARLY APRIL MAZDA MOTOR CORP SAID ITS SALES OF DOMESTICALLY MADE CARS INCREASED 24 WHILE ITS TRUCK SALES FELL 3 MITSUBISHI MOTORS CORP REPORTED A 34 DROP IN DOMESTIC CAR SALES FOR EARLY APRIL SALES OF TRUCKS MADE IN THE US BY ISUZU MOTORS LTD INCREASED 77 FORD PLANS TO RELEASE ITS 10DAY SALES FIGURES TODAY CHRYSLER WHICH REPORTS ONLY MONTHEND SALES FIGURES HAD A 324 INCREASE IN CAR SALES AND A 29 INCREASE IN TRUCK SALES IN EARLY APRIL ACCORDING TO AN ESTIMATE BY WARD'S AUTOMOTIVE REPORTS A TRADE PUBLICATION 9304150099 930415 WEDNESDAY'S MARKETS STOCK PRICES END MIXED BONDS GAIN PROFITREPORT FLOOD UNSETTLES SHARES DOLLAR CLOSES HIGHER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED IN A SESSION DOMINATED BY QUARTERLY EARNINGS REPORTS BOND PRICES CLIMBED AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE ADVANCED 1161 POINTS TO 345564 STANDARD & POOR'S 500STOCK INDEX EASED 056 POINT TO 44866 AND THE NASDAQ COMPOSITE INDEX WAS UP 011 TO 67394 ANALYSTS SAID THE FLOOD OF EARNINGS REPORTS IS CREATING SHARP CROSSCURRENTS IN THE MARKET IT'S A VERY MIXED PICTURE AS THE MARKET DIGESTS FIRSTQUARTER EARNINGS WHICH ARE ALL OVER THE PLACE SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO A FEW LARGE CYCLICAL STOCKS BOOSTED THE INDUSTRIAL AVERAGE GOODYEAR TIRE & RUBBER ROSE 1 3/4 OR 2 TO 80 7/8 AND MINNESOTA MINING & MANUFACTURING GAINED 2 5/8 OR 24 TO 113 3/8 THE STRENGTH IN THE INDUSTRIAL AVERAGE MASKED A WEAKER OVERALL MARKET ACCORDING TO MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO THE REST OF THE MARKET IS LAGGING IN PART BECAUSE OF A FEAR IN TECHNOLOGY STOCKS ESPECIALLY THAT ALL THE GOOD NEWS IS OUT AND IT DOESN'T GET ANY BETTER HE SAID MY OWN JUDGMENT IS IT'S EXIT TIME MR METZ SAID THE DANGERS TO INVESTORS FROM POOR EARNINGS REPORTS FAR OUTWEIGH THE BENEFITS OF SURPRISINGLY GOOD PROFITS IF YOU'RE RIGHT YOU BREAK EVEN MR METZ SAID IF YOU'RE WRONG YOU GET SLAUGHTERED PRECIOUS METALS AND MINING STOCKS WERE AMONG THE DAY'S BEST PERFORMERS AS COMMODITIES PRICES ROSE MR MCALINDEN NOTED THAT THE JUMP IN COMMODITIES PRICES FAILED TO STAGGER BOND PRICES THE BOND MARKET IS FEEDING ON THE FAVORABLE INFLATION NEWS IT GOT LAST WEEK HE SAID BUT IF WE SEE A REEMERGENCE OF A RISING TREND IN COMMODITIES PRICES WHICH HAS DEVELOPED IN THE LAST COUPLE OF DAYS IT WILL DERAIL THE BOND MARKET AT SOME POINT OVERSEAS HONG KONG STOCKS SOARED 58 AFTER CHINA AND BRITAIN AGREED TO NEGOTIATIONS AIMED AT RESOLVING THEIR DIFFERENCES OVER THE POLITICAL FUTURE OF THE BRITISH COLONY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 055 TO 10497 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2561 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1021 ISSUES ROSE AND 874 FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 3/8 POINT OR MORE THAN 375 FOR EACH 1000 FACE AMOUNT TO YIELD 675 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15935 MARKS AND 11388 YEN COMPARED WITH 15820 MARKS AND 11340 YEN TUESDAY 9304150098 930415 WHO'S NEWS PRESIDENT OF TANDY'S GRID SYSTEMS CORP RESIGNS BEFORE SPINOFF FORT WORTH TEXAS GRID SYSTEMS CORP SAID D BRUCE WALTER THE COMPANY'S PRESIDENT SINCE JULY 1991 RESIGNED TO PURSUE OTHER BUSINESS INTERESTS THE MAKER OF NOTEBOOK AND PENBASED PERSONAL COMPUTERS IS A UNIT OF TE ELECTRONICS INC WHICH IS PROPOSED TO BE SPUN OFF BY TANDY CORP THIS YEAR GRID SAID MR WALTER 50 YEARS OLD WILL BE SUCCEEDED BY HOWARD D ELIAS 35 TE'S VICE PRESIDENT OF SALES AND MARKETING UNTIL A PERMANENT REPLACEMENT IS NAMED REACHED AT HIS DALLAS HOME MR WALTER SAID HE HAS DISCUSSED LEAVING GRID FOR SOME TIME WE DECIDED THE IDEAL TIME WOULD BE BEFORE WE MAKE THE ACTUAL SPLIT HE SAID I JUST FELT THAT NOW WAS THE TIME TO GO AND DO SOMETHING ELSE THIS SUMMER TANDY IS EXPECTED TO SPIN OFF ITS MANUFACTURING AND TECHNOLOGY OPERATIONS INCLUDING GRID IN AN EFFORT TO SHARPEN THE FOCUS ON ITS CORE RETAIL OPERATIONS TANDY OPERATES THE RADIO SHACK AND COMPUTER CITY RETAIL CHAINS AMONG OTHERS WHILE MR WALTER DECLINED TO SAY WHETHER HE PLANNED TO START HIS OWN COMPANY OR JOIN AN EXISTING FIRM HE SAID HE HOPED TO STAY IN THE PENBASED AND MOBILE COMPUTING ARENA 9304150097 930415 TECHNOLOGY ANTHEM ELECTRONICS PROFIT SAN JOSE CALIF ANTHEM ELECTRONICS INC SAID SLUMPING DISKDRIVE SALES AND OTHER FACTORS CAUSED FIRSTQUARTER PROFIT TO PLUNGE 26 THE ELECTRONICS DISTRIBUTOR EARNED 558 MILLION OR 45 CENTS A SHARE COMPARED WITH 756 MILLION OR 62 CENTS A SHARE A YEAR AGO SALES ROSE 13 TO 1421 MILLION UP FROM 1261 MILLION OTHER REASONS CITED BY THE COMPANY FOR ITS PROFIT DROP WERE INCREASED DEMAND FOR LOWERMARGIN MICROPROCESSORS AS WELL AS A CHANGE IN THE WAY PROGRAMMING COSTS ARE CLASSIFIED 9304150096 930415 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AS PART OF ITS ANTICORRUPTION DRIVE SOUTH KOREA'S NEW GOVERNMENT BEGAN A BANKING INVESTIGATION IN A CRACKDOWN ON ILLEGAL TRANSFERS OF MONEY ABROAD SPECULATION HAS GROWN THAT WEALTHY KOREANS LAUNDER OR HIDE ILLGOTTEN CASH THROUGH FOREIGN BANKS REGULATORS' INVESTIGATION OF OVERSEAS REMITTANCES AND LOANS INCLUDES EXAMINATIONS OF THREE OF THE 12 KOREAN BRANCHES OF CITICORP'S CITIBANK UNIT THE BANK DECLINED TO COMMENT AMONG FOREIGN BANKS IN KOREA CITIBANK IS THE MOST ACTIVE WITH A RETAIL EMPHASIS WHILE MOST OTHERS HAVE SMALL BRANCHES DOING WHOLESALE BUSINESS LARGELY WITH CORPORATE CUSTOMERS SEPARATELY CHOI HYONG WOO A CONFIDANT OF PRESIDENT KIM YOUNG SAM RESIGNED AS AN OFFICER OF THE RULING DEMOCRATIC LIBERAL PARTY AFTER THE DISCOVERY OF A BRIBE IN HIS SON'S ADMISSION TO A COLLEGE MR CHOI HAD A KEY ROLE IN THE ANTICORRUPTION CAMPAIGN THAT HAS FORCED A DOZEN LEGISLATORS AND SENIOR GOVERNMENT OFFICIALS TO QUIT THE EUROPEAN COMMUNITY COMMISSION NEXT WEDNESDAY WILL CONSIDER A REVISED PLAN FOR SCIENCE AND TECHNOLOGY PROGRAMS FOR THE FIVE YEARS THROUGH 1998 MEMBERS REJECTED A FIRST DRAFT LAST YEAR AS TOO EXPENSIVE THE NEW PROPOSAL WHICH CRITICS BRANDED AS UNWIELDY AND POLITICALLY SLANTED WOULD INCREASE RESEARCH GRANTS AND SUBSIDIES TO 12 BILLION EUROPEAN CURRENCY UNITS 1478 BILLION FROM THE CURRENT FIVEYEAR PROGRAM'S 66 BILLION ECUS COMPETING FOR FUNDS ARE INDUSTRIAL RESEARCH PROJECTS IN HIGHPERFORMANCE COMPUTING INTERGOVERNMENTAL COMPUTER NETWORKS AND SOFTWARE ENGINEERING CHINA WILL PAY FOR CROPS WITH CASH AND STOP ISSUING IOUS THE MOVE UNDERLINES THE GOVERNMENT'S CONCERN ABOUT UNREST AMONG FINANCIALLY SQUEEZED PEASANTS AND THEIR IMPORTANCE TO THE ECONOMY AN URBAN AND COASTAL ECONOMIC BOOM HAS DIVERTED MONEY FROM CHINA'S VAST RURAL AREAS HURTING THE 800 MILLION FARMERS WHO CONTRACT TO SELL PART OF THEIR HARVESTS TO THE GOVERNMENT LAST YEAR LOCAL GOVERNMENTS ISSUED IOUS TO MANY FARMERS BECAUSE SOME MONEY FOR CROP PURCHASES WENT INSTEAD TO DEVELOPMENT ZONES INDUSTRIAL PROJECTS AND REAL ESTATE A SURPRISINGLY BIG INCREASE IN BRITAIN'S MANUFACTURING OUTPUT LAST MONTH LEFT SOME ECONOMISTS CONVINCED THE RECESSION THAT BEGAN IN THE 1990 THIRD QUARTER IS OVER A MARCH RISE OF JUST 02 HAD BEEN EXPECTED BUT PRODUCTION CLIMBED 12 FROM JANUARY FOR WHICH THE INCREASE WAS REVISED TO 13 FROM 08 ECONOMISTS ALSO WERE PLEASED BY A 12 CLIMB IN FACTORY OUTPUT FOR THE THREE MONTHS ENDED FEB 28 FROM A YEAR EARLIER SAYING THIS FURTHER REINFORCED THE RECOVERY SCENARIO NEW GOODS AREN'T STACKING UP IN WAREHOUSES SIGNALING GROWING CONSUMER DEMAND THIRTY EUROPEAN COUNTRIES AGREED IN A COPENHAGEN CONFERENCE THAT FREE TRADE IS THE KEY TO UNDOING THE LEGACY OF COMMUNIST RULE THE 19 WESTERN AND 11 EASTERN COUNTRIES EMPHASIZED THE IMPORTANCE OF LIBERAL POLICIES TO EASTERN COUNTRIES' TRANSITION TO MARKET ECONOMIES DISSATISFIED BY EUROPEAN COMMUNITY PROMISES OF LOWER TRADE BARRIERS EAST EUROPEANS PRESSED FOR MORE ACCESS TO WESTERN MARKETS AND A CLEAR PATH TO JOINING THE EC BUT A JOINT DECLARATION EXCLUDED ACCORDS OR AID PLEDGES AND MADE ONLY A LOOSE COMMITMENT TO LIBERALIZED TRADE AN ISSUE THAT IS SOURING TIES BETWEEN THE EAST AND THE WEST IN THE FIRST QUARTER FOREIGN INVESTMENT APPROVED IN TAIWAN SANK 14 TO 183 MILLION FROM A YEAR EARLIER THE GOVERNMENT ATTRIBUTED THE DROP MAINLY TO SHRIVELED INVESTMENT FROM JAPAN WHICH PLUNGED 65 TO 389 MILLION THE QUARTERLY SHRINKAGE REVERSED A TREND IN THIS YEAR'S FIRST TWO MONTHS WHEN FOREIGN INVESTMENT ADVANCED 25 TO 164 MILLION THE MARCH TOTAL WAS JUST 193 MILLION FOR THE QUARTER EUROPE DISPLACED JAPAN TO BECOME THE BIGGEST INVESTOR TRIPLING TO 679 MILLION US INVESTMENTS ROSE 25 TO 327 MILLION THE ELECTRONICS AND ELECTRICAPPLIANCE INDUSTRY ATTRACTED THE MOST INVESTMENT FROM ABROAD 941 MILLION OR 51 OF THE TOTAL IN LAST WEEK'S EXPLOSION AT A RUSSIAN NUCLEAR PLANT TINY AMOUNTS OF PLUTONIUM LEAKED INTO THE SIBERIAN AREA BUT THE REPUBLIC'S NUCLEAR AGENCY SAID THE CONTAMINATION DIDN'T POSE HEALTH RISKS OR REQUIRE NEW SAFETY MEASURES THE INTERNATIONAL ATOMIC ENERGY AGENCY IN VIENNA ALSO SAID POSTBLAST PLUTONIUM LEVELS DIDN'T APPEAR DANGEROUS BUT RADIOACTIVE HOT SPOTS MAY EXIST IN THE CONTAMINATED AREA OF 46 SQUARE MILES AROUND THE TOMSK7 MILITARY REPROCESSING PLANT ABOUT 1800 MILES EAST OF MOSCOW MEANWHILE PRESIDENT BORIS YELTSIN'S ENVIRONMENTAL ADVISER ALEXEI YABLOKOV WARNED THAT MORE RUSSIAN NUCLEAR ACCIDENTS ARE POSSIBLE SAYING THE SYSTEM IS DANGEROUSLY OUT OF CONTROL SYRIAN PRIME MINISTER MAHMOUD ALZOUBI SAYING ARAB NATIONS FACE STIFFENING GLOBAL COMPETITION URGED THEM TO SEEK ECONOMIC AND POLITICAL UNITY EMULATING THE EUROPEAN COMMUNITY BEER CONSUMPTION IN JAPAN IN 1992 INCREASED FOR THE EIGHTH CONSECUTIVE YEAR AND ACCOUNTED FOR 70 OF TOTAL ALCOHOLICBEVERAGE CONSUMPTION OF 156 BILLION GALLONS UP 27 FROM 1991 OVERALL CONSUMPTION ROSE FOR THE SEVENTH YEAR IN A ROW WHILE WHISKY CONSUMPTION FELL FOR THE FOURTH STRAIGHT YEAR 9304150095 930415 TECHNOLOGY NEXT SAYS SOME COMPUTER MAKERS AGREE TO OFFER ITS OPERATING SOFTWARE ON PCS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL NEXT COMPUTER INC GAINING A SMALL BOOST FOR ITS SOFTWARE BUSINESS SAID SEVERAL BIG COMPUTER MANUFACTURERS WILL OFFER NEXT'S OPERATING SYSTEM SOFTWARE ON SOME OF THE PERSONAL COMPUTERS THEY SELL THE AGREEMENTS ARE EXPECTED TO GIVE NEXT SOME MUCHNEEDED REVENUE NOW THAT THE COMPANY HAS STOPPED MAKING HARDWARE BUT NEXT HEADED BY APPLE COMPUTER INC COFOUNDER STEVEN JOBS STILL FACES A BATTLE TO GAIN SIGNIFICANT ACCEPTANCE OF ITS SOFTWARE AND EARN PROFITS IN A MARKET DOMINATED BY MICROSOFT CORP NEXT SAID THAT HEWLETTPACKARD CO DELL COMPUTER CORP EPSON AMERICA INC NEC CORP DATA GENERAL CORP AND SIEMENS CORP HAVE AGREED TO OFFER A VERSION OF ITS NEXTSTEP OPERATING SYSTEM SOFTWARE WITH SOME PC MODELS USING INTEL CORP MICROPROCESSORS OPERATING SYSTEM SOFTWARE CONTROLS THE BASIC FUNCTIONS OF COMPUTERS NEXT OF REDWOOD CITY CALIF SAID IT WILL BEGIN SELLING THE NEXTSTEP VERSION ON MAY 25 AT A LIST PRICE OF 795 NEXTSTEP IS NOW ONLY AVAILABLE FOR USE IN WORKSTATION COMPUTERS MADE BY NEXT BEFORE IT ABANDONED ITS HARDWAREMANUFACTURING BUSINESS LAST FEBRUARY IN FAVOR OF FOCUSING ON SOFTWARE DEVELOPMENT BY OFFERING THE SOFTWARE FOR INTELBASED MACHINES AS WELL WE WANT TO MAKE NEXTSTEP EASY TO BUY MR JOBS SAID IN AN INTERVIEW WE THINK WE ARE REMOVING THE MAJOR OBSTACLE THAT HAS KEPT NEXTSTEP FROM BEING SUCCESSFUL MR JOBS SAID WITHOUT ELABORATING THAT THE AGREEMENTS WITH THE COMPUTER MAKERS REPRESENT THE FIRST ROUND OF ANNOUNCEMENTS THAT NEXT EXPECTS TO MAKE BY THE END OF MAY THAT WILL SHOW HOW NEXTSTEP IS GAINING IN THE OPERATINGSYSTEM MARKET NEXT'S SOFTWARE HAS WON PRAISE FOR ITS TECHNICAL ELEGANCE BECAUSE OF ITS USE OF A METHOD RELYING ON BLOCKS OF COMPUTER CODE CALLED OBJECTS WHICH ALLOW SOFTWARE DEVELOPERS TO CREATE COMPUTER PROGRAMS MORE EASILY AND QUICKLY THAN THROUGH MORE CONVENTIONAL METHODS REQUIRING LINEBYLINE REWRITING OF A COMPUTER CODE IN THE OPERATINGSYSTEM MARKET NEXT MUST COMPETE WITH COMPANIES SUCH AS MICROSOFT SUN MICROSYSTEMS INC AND INTERNATIONAL BUSINESS MACHINES CORP EACH OF WHICH IS DEVELOPING NEW OPERATING SOFTWARE LAST MONTH NEXT WAS DEALT A BLOW WHEN A GROUP OF COMPANIES THAT INCLUDED IBM SUN AND HEWLETTPACKARD AGREED TO USE A STANDARD APPROACH FOR A TYPE OF OPERATINGSYSTEM SOFTWARE CALLED UNIX WHICH IS WIDELY USED IN WORKSTATION COMPUTERS THAT WOULD MAKE DIFFERENT VERSIONS WORK AND LOOK MUCH THE SAME WAY THEREBY STRENGTHENING THE SOFTWARE'S APPEAL NEXT'S NEW STRATEGY WILL HELP BROADEN ITS MARKET PRESENCE AND POSITION BUT IT DOESN'T NECESSARILY MEAN THAT IT WILL TRANSLATE INTO BIG SALES SAID TIMOTHY BAJARIN PRESIDENT OF CREATIVE STRATEGIES RESEARCH INTERNATIONAL A MARKET RESEARCH FIRM 9304150094 930415 ONTARIO HYDRO APPROVES PROPOSAL FOR RESTRUCTURING BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ONTARIO HYDRO SAID ITS BOARD APPROVED A PROPOSAL TO RESTRUCTURE THE COMPANY INTO THREE SEMIAUTONOMOUS DIVISIONS WHICH THE STATEOWNED UTILITY SAYS WILL PERMIT A MORE ACCURATE VALUATION OF ITS ASSETS SOME ANALYSTS SAY THIS COULD FACILITATE THE PRIVATIZATION OF ALL OR PART OF THE UTILITY HYDRO OFFICIALS HAVE ACKNOWLEDGED THAT THE RESTRUCTURING PROCESS MAKE IT EASIER FOR POTENTIAL INVESTORS TO STUDY HYDRO'S ASSETS MAURICE STRONG CHAIRMAN OF HYDRO WARNED THAT THE UTILITY EXPECTS TO REPORT ABOUT 13 BILLION CANADIAN DOLLARS US103 BILLION IN CHARGES RELATED TO THE RESTRUCTURING AGAINST ITS 1993 FINANCIAL RESULTS ABOUT C500 MILLION WILL REPRESENT THE COST OF CUTTING 4500 EMPLOYEES BEFORE YEAR'S END ACCORDING TO INTERNAL DOCUMENTS HYDRO EXPECTS TO REPORT ESSENTIALLY NO OPERATING INCOME FOR 1993 AND IS CALLING FOR A NET LOSS OF C13 BILLION EARLIER ESTIMATES HAD PEGGED THE SIZE OF THE 1993 LOSS AT ABOUT C1 BILLION HYDRO SAID IT PLANS TO SEPARATE ITS CORE ELECTRICAL GENERATING TRANSMISSION AND DISTRIBUTION OPERATIONS INTO ONE DIVISION AND ESTABLISH TWO OTHER OPERATING UNITS FOR ITS INTERNATIONAL CONSULTING BUSINESS AND ITS ENVIRONMENTAL MANAGEMENT AND OTHER ENERGY SERVICES THE UTILITY SAID IT HAS NOT DETERMINED WHICH ASSETS WILL BE ALLOCATED TO WHICH DIVISION STRONG SAID THE PROCESS COULD RESULT IN A REVALUATION OF SOME ASSETS AND POSSIBLY SOME WRITEDOWNS HYDRO SAID MR STRONG WILL HEAD ONTARIO HYDRO ENTERPRISES GROUP THE NEW DIVISION IN CHARGE OF NEW BUSINESS VENTURES AND INTERNATIONAL CONSULTING ALLAN KUPCIS PRESIDENT OF THE UTILITY WILL BECOME MANAGING DIRECTOR OF THE GENERATING AND TRANSMISSION UNIT HYDRO HAS HIRED JOHN FOX A FORMER EXECUTIVE OF SAN FRANCISCOBASED PACIFIC GAS & ELECTRIC CO TO HEAD ITS ENERGY SERVICES AND ENVIRONMENT GROUP HYDRO SAID EIGHT OF THE UTILITY'S 16 VICE PRESIDENTS WILL LEAVE BY YEAR'S END AND THAT THE RESTRUCTURING WILL HELP KEEP SENIOR MANAGEMENT RANKS SLIM THE RESTRUCTURING IS EXPECTED TO BE COMPLETED BY JULY 30 MR STRONG SAID HYDRO PLANS TO DEBATE OTHER RESTRUCTURING OPTIONS BUT THAT MANY WOULD REQUIRE GOVERNMENT ACTION SOME SUCH AS THE PRIVATIZATION OF ALL OR PART OF HYDRO WOULD REQUIRE LEGISLATION BY ONTARIO'S PARLIAMENT BY AUTUMN HYDRO HOPES TO SUBMIT TO THE GOVERNMENT A LIST OF LONGERTERM OPTIONS REQUIRING POLICY CHANGES MR STRONG SAID HE DECLINED TO SAY WHETHER THE UTILITY WOULD REQUEST THAT PRIVATIZATION BE CONSIDERED HYDRO HAS BEEN STRUGGLING FOR TWO YEARS WITH FALLING DEMAND FOR ELECTRICITY AND SKYROCKETING DEBT MUCH OF IT LINKED TO THE COSTS OF BUILDING ITS DARLINGTON NUCLEAR POWER PLANT AT THE END OF FEBRUARY HYDRO REPORTED ITS LONGTERM DEBT WAS C35 BILLION DEMAND FOR ELECTRICITY CONTINUED TO FALL IN THE FIRST THREE MONTHS OF 1993 THE UTILITY SAID 9304150093 930415 JURY AWARDS WOMAN 1 MILLION IN LAWSUIT OVER LTRYPTOPHAN SAN DIEGO A WOMAN WHO BECAME ILL AFTER TAKING LTRYPTOPHAN A NOWBANNED DIETARY SUPPLEMENT WAS AWARDED 1 MILLION BY A JURY IN A PRODUCTLIABILITY LAWSUIT AGAINST SHOWA DENKO KK A JAPANESE CHEMICAL COMPANY A SUPERIOR COURT JURY FOUND THAT ELIZABETH DIROSA 42 YEARS OLD WAS PARTIALLY RESPONSIBLE FOR HER ILLNESS BECAUSE SHE CONTINUED TO TAKE THE AMINOACID SUPPLEMENT AFTER HEARING A NOVEMBER 1989 NEWS REPORT SAYING SOME PEOPLE WHO TOOK IT WERE FALLING ILL WITH EOSINOPHILIA MYALGIA SYNDROME A DEBILITATING BLOOD DISORDER MS DIROSA BECAME ILL IN 1990 SUFFERING FROM FATIGUE MEMORY LOSS DAMAGE TO INTERNAL ORGANS AND SKIN PROBLEMS ABOUT FOUR MILLION PEOPLE TOOK THE SUPPLEMENT FOR INSOMNIA MENSTRUAL PROBLEMS AND OTHER TROUBLES BEFORE IT WAS PULLED FROM STORE SHELVES IN 1989 MS DIROSA HAD SOUGHT 10 MILLION IN COMPENSATORY DAMAGES AND 134 MILLION IN PUNITIVE DAMAGES ROY CANNON A LAWYER FOR MS DIROSA SAID THE JURY DIDN'T AWARD PUNITIVE DAMAGES APPARENTLY BECAUSE THERE WAS NO FINDING OF MALICE ON THE PART OF THE COMPANY MS DIROSA'S CONDITION IS DETERIORATING MR CANNON SAID ABOUT 1500 PEOPLE REPORTED FALLING ILL AFTER TAKING LTRYPTOPHAN AND THIS IS THE FIRST OF HUNDREDS OF RESULTING LAWSUITS TO COME TO TRIAL ROBERT GREIG A LAWYER FOR SHOWA DENKO SAID THE COMPANY HAS SETTLED MOST OF THE CASES AND IS IN TALKS TO SETTLE OTHERS WE'RE GRATIFIED THAT THE JURY FOUND THERE SHOULD BE NO AWARD OF PUNITIVE DAMAGES MR GREIG SAID ADDING THAT THE COMPANY HAD ATTEMPTED TO SETTLE MS DIROSA'S CASE BEFORE THE TRIAL 9304150092 930415 NEW VALLEY TRADES SUSPENDED NEW YORK THE NEW YORK STOCK EXCHANGE SUSPENDED TRADING IN THE COMMON STOCK AND TWO PREFERRED ISSUES OF NEW VALLEY CORP WHICH RECENTLY FILED FOR BANKRUPTCYCOURT PROTECTION THE EXCHANGE ALSO DELISTED TWO DEBT SECURITIES OF WESTERN UNION CORP AND EIGHT DEBT SECURITIES OF THE WESTERN UNION TELEGRAPH CO WHICH ARE UNITS OF NEW VALLEY FOLLOWING SUSPENSION OF TRADING THE EXCHANGE SAID IT WOULD APPLY TO THE SECURITIES AND EXCHANGE COMMISSION TO DELIST THE ISSUES NEW VALLEY HAD FALLEN BELOW SOME OF ITS MINIMUM LISTING CRITERIA THE EXCHANGE ADDED 9304150091 930415 PH GLATFELTER POSTS LOSS FOR FIRST PERIOD SALES DECLINED 12 SPRING GROVE PA PH GLATFELTER CO A MAKER OF SPECIALTY PRINTING AND TOBACCO PAPER PRODUCTS REPORTED A 12 DECLINE IN FIRSTQUARTER SALES AND A LOSS OF 44 MILLION OR 10 CENTS A SHARE AFTER CHARGES FOR RESTRUCTURING COSTS AND ACCOUNTING CHANGES GLATFELTER WHICH HAD YEAREARLIER PROFIT OF 149 MILLION OR 33 CENTS A SHARE SAID THE LOSS INCLUDED 132 MILLION IN UNUSUAL ITEMS INCLUDING A 164 MILLION RESTRUCTURING CHARGE PARTIALLY OFFSET BY A GAIN FOR THE DISPOSAL OF AN AIRPLANE AND A CREDIT FOR UPDATING ESTIMATES RELATED TO ACCOUNTING STANDARDS FOR POSTRETIREMENT BENEFITS THE FIRSTQUARTER RESULTS ALSO INCLUDED A NET CHARGE OF 42 MILLION FOR THE CUMULATIVE EFFECT OF ADOPTING NEW ACCOUNTING STANDARDS RELATED TO INCOME TAXES AND POSTEMPLOYMENT BENEFITS WITHOUT UNUSUAL ITEMS AND ACCOUNTING CHANGES THE COMPANY SAID EARNINGS WERE 82 MILLION OR 19 CENTS A SHARE GLATFELTER SAID THE LOSS OF PHILIP MORRIS COS AS A CUSTOMER EFFECTIVE JAN 1 HAD A SIGNIFICANT NEGATIVE IMPACT ON FIRSTQUARTER OPERATIONS AND IT SAID EXCESS CAPACITY IN THE PRINTING PAPER INDUSTRY CONTINUED TO HOLD SELLING PRICES AT DEPRESSED LEVELS SALES FOR THE QUARTER FELL TO 1225 MILLION FROM 1386 MILLION DESPITE THE SLIP IN SALES GLATFELTER SAID ITS FIRSTQUARTER EARNINGS EXCEEDED PLANS IT ALSO SAID THAT AN EARLY RETIREMENT PROGRAM SHOULD REDUCE ANNUAL COSTS BY 75 MILLION EFFECTIVE MAY 1 IN AMERICAN STOCK EXCHANGE TRADING SHARES OF GLATFELTER FELL 625 CENTS TO 16625 9304150090 930415 REVIEW & OUTLOOK EDITORIAL DISSECTING THE UNINSURED BILL CLINTON HAS 500 GENIUSES BEAVERING AWAY ON HILLARY'S HEALTHCARE TASK FORCE AND ONE OF THE ADVERTISED REASONS IS THE CRISIS OF THE 37 MILLION UNINSURED BUT BEFORE TURNING ONEEIGHTH OF THE ECONOMY UPSIDE DOWN TO HELP THESE SOULS MAYBE SOMEBODY SHOULD TRY TO DISTINGUISH BETWEEN AN INTRIGUING PROBLEM AND A CRISIS THIRTYSEVEN MILLION SOUNDS LIKE A LOT BUT THAT STILL LEAVES 182 MILLION PEOPLE SWIMMING IN THE WORLD'S BEST MEDICAL CARE SOME 83 OF AMERICANS HAVE PUBLIC OR PRIVATE INSURANCE OR BOTH INCLUDING THE GENUINELY POOR 24 MILLION OF THEM HAVE MEDICAID NOW BEING WITHOUT HEALTH INSURANCE IS NOT THE SAME THING AS BEING WITHOUT HEALTH CARE BUT IT IS TRUE THAT SOME FOLKS ARE OUTSIDE THE SYSTEM WHO ARE THEY THE CENSUS BUREAU'S SURVEY ASKS WAS ANYONE IN THIS HOUSEHOLD COVERED BY HEALTH INSURANCE AT ANY TIME IN A GIVEN YEAR IN THEORY PEOPLE WHO SAY NO SHOULD HAVE BEEN WITHOUT HEALTH INSURANCE FOR THE WHOLE YEAR IN PRACTICE THE CENSUS BUREAU TACITLY ACCEPTS THAT WHAT THESE FOLKS ARE REALLY SAYING IS THEY DON'T HAVE INSURANCE NOW THAT IS FOR MOST PEOPLE IT'S A TEMPORARY CONDITION IT TURNS OUT THAT HALF OF THE UNINSURED GO WITHOUT COVERAGE FOR LESS THAN FIVE MONTHS AND 70 FOR LESS THAN NINE MONTHS AMONG THE UNINSURED CAPABLE OF OR WILLING TO WORK THREEQUARTERS REACQUIRE COVERAGE WITHIN A YEAR AMAZINGLY THIS FIGURE HOLDS FOR BOTH FULL AND PARTTIME WORKERS WHAT'S GOING ON HERE IS THAT MANY OF THE UNINSURED ARE BETWEEN JOBS OR ARE JUST CLIMBING OUT OF THE MEDICAID CORRAL AND INTO THE SELFSUPPORTING SECTOR A LOT MAY BE PLUGGING AWAY AT LOWWAGE OR PARTTIME JOBS IN INDUSTRIES LIKE RETAIL WITH HIGH TURNOVER EVENTUALLY THEIR EMPLOYERS WILL OFFER THEM HEALTH INSURANCE BUT ONLY AFTER A WAITING PERIOD THAT'S BECAUSE EMPLOYERS WANT TO MAKE SURE THAT NEW HIRES INTEND TO STICK AROUND FIRST ALL OF THIS THROWS INTO DOUBT A CENTRAL TENET OF THE SCHEME BEING ADVANCED BY HILLARY'S PROJECT THAT COMPANIES MUST BE COMPELLED TO INSURE THEIR WORKERS MANDATING EMPLOYER PROVIDED HEALTH INSURANCE IS NOT LIKELY TO PROVIDE IT TO GREAT NUMBERS OF THE UNINSURED IS THE CONCLUSION OF KATHERINE SWARTZ AND TIMOTHY MCBRIDE WHO PRODUCED THE ABOVE FINDINGS IN A STUDY FOR THE URBAN INSTITUTE WHAT ELSE DO WE ACTUALLY KNOW ABOUT THE UNINSURED THEY TEND TO BE YOUNG LOW ON THE EARNING CURVE BUT NOT NECESSARILY POOR NEARLY HALF HAVE HOUSEHOLD INCOMES ABOVE 20000 AND 17 EARN MORE THAN 40000 ACCORDING TO THE EMPLOYEE BENEFIT RESEARCH INSTITUTE WHAT THIS SUGGESTS IS THAT MANY YOUNG WORKERS ARE TURNING DOWN HEALTH COVERAGE FROM THEIR EMPLOYERS THEY'D RATHER HAVE THE CASH WAGES AND FUNNEL THE MONEY TOWARD RENT CAR PAYMENTS OR A SAVINGS ACCOUNT THIS ISN'T SUCH A FOOLHARDY GAMBLE YOUNG FOLKS ARE LESS LIKELY TO GET SERIOUSLY ILL AND THEREFORE LESS LIKELY TO COLLECT MUCH FROM THEIR INSURANCE UNDER THE CIRCUMSTANCES PAYING A FAT PREMIUM WOULD ONLY SUBSIDIZE HERNIA OPERATIONS FOR THE OLD CODGER AT THE NEXT LATHE IN EFFECT THESE WORKERS OPT TO SELFINSURE WHICH MEANS THEY REACH INTO THEIR OWN POCKETS WHEN THEY NEED A DOCTOR AS PATIENTS THEY'RE UNIQUELY INTERESTED IN GETTING THEIR MONEY'S WORTH ON AVERAGE SUCH PEOPLE SPEND 711 A YEAR ON MEDICAL SERVICES OR LESS THAN HALF WHAT PEOPLE SPEND WHEN COMPANY HEALTH INSURANCE IS PAYING THE FREIGHT ACCORDING TO ACTUARIAL ACCOUNTANTS MILLIMAN & ROBERTSON WHAT MAKES THIS 711 FIGURE EVEN MORE IMPRESSIVE IS THAT IT INCLUDES THE 10 BILLION A YEAR IN UNCOMPENSATED CARE THAT HOSPITALS ARE STUCK PROVIDING TO PEOPLE WITHOUT INSURANCE NO DOUBT SOME OF THE UNINSURED EXPLOIT THE AVAILABILITY OF THIS LARGESS THEY ASSUME THAT IF THEY GET REALLY SICK HELP WILL TURN UP AND GENERALLY IT DOES THOUGH THE FULLY INSURED GET THE TAB NOBODY KNOWS HOW MANY OF THE LONGTERM UNINSURED ARE TRULY NEEDY HOW MANY ARE JUST ECONOMIZING OR HOW MANY HAVE FALLBACK STRATEGIES THEY DO INDEED HAVE A PROBLEM BUT IT ISN'T THAT THEIR AFFLICTIONS WILL GO UNTREATED IT'S THAT IF THEY CONTRACT SOMETHING SERIOUS WHILE THEY'RE UNINSURED INSURANCE COMPANIES WILL DENY THEM COVERAGE FOR WHAT'S CALLED A PREEXISTING CONDITION BUT NO WAY DO 36 MILLION PEOPLE HAVE THIS PROBLEM OR CRISIS NO QUESTION OUR HEALTH CARE SYSTEM IS RIDDLED WITH DISTORTIONS THERE'S ROOM FOR IMPROVEMENT BUT AT LEAST THE CURRENT STRUCTURE MANAGES TO RECONCILE THE CONFLICTING DEMANDS WE PLACE ON IT WE WANT MEDICAL CARE THAT'S RESPONSIVE TO THE INDIVIDUAL BUT WE DON'T WANT PEOPLE DYING FOR LACK OF BASIC TREATMENT JUST BECAUSE THEY'RE PENNILESS MR CLINTON GOES AROUND QUOTING FDR AND CLAIMING THAT THE TIMES CALL FOR BOLD PERSISTENT EXPERIMENTATION BUT THIS IS NOT THE GREAT DEPRESSION AND AMERICA ISN'T RUNNING OFF A CLIFF DESPITE ALL THE MEDIA HOOPLA AND HANDWRINGING IN VARIOUS MEDICAL JOURNALS WE THINK A VERY STRONG CASE CAN BE MADE THAT SMALLERSCALE EXPERIMENTATION AND INNOVATION WOULD BE MORE APT HOW ABOUT MEDICAL IRAS MEDICAID VOUCHERS AND LOOSENING UP STATE MANDATES THAT FORCE COMPANIES TO GOLDPLATE THEIR HEALTH BENEFITS EACH OF THESE WOULD HELP TO LURE MORE FOLKS UNDER THE INSURANCE UMBRELLA AND TRIM DEMAND FOR UNCOMPENSATED CARE PERHAPS THE DRUMBEAT OF STORIES ABOUT THE SYSTEM'S ANOMALIES WILL HELP THE CLINTONITES BULLY CONGRESS INTO ENACTING WHATEVER HILLARY COOKS UP BUT A SOBER LOOK AT THE SYSTEM'S REAL PROBLEMS SUGGESTS THAT THIS ADMINISTRATION IS REALLY OVERREACHING A SPASM OF ACTIVIST HUBRIS FROM A SECRETIVE GROUP OF LIBERAL GENIUSES IS NOT ANYONE'S FORMULA FOR A SERIOUS CURE 9304150089 930415 AT&T TO SEEK WIDER SALES TO UK FIRMS PROPOSAL FOR GLOBAL SERVICES FOLLOWS BIG US PLANS SET BY BRITISH TELECOM BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO PRESSURED BY BRITISH TELECOMMUNICATIONS PLC'S PLAN TO OFFER GLOBAL SERVICES FROM THE US WILL TRY TO OUTFLANK ITS RIVAL WITH SERVICE IN BRITAIN AT&T WILL ANNOUNCE TODAY THAT IT IS SEEKING APPROVAL FROM THE BRITISH GOVERNMENT TO SELL INTERNATIONAL COMMUNICATIONS SERVICES TO CORPORATIONS WITH OFFICES IN BRITAIN SAID INDIVIDUALS FAMILIAR WITH AT&T'S PLANS AT&T REFUSED TO COMMENT ON THE ANNOUNCEMENT WHICH IS EXPECTED TO BE MADE IN WASHINGTON AT&T'S MOVE FOLLOWS A SIMILAR EFFORT BY BT TO EXPAND IN THE US MARKET LAST WEEK BT ASKED THE FEDERAL COMMUNICATIONS COMMISSION FOR PERMISSION TO SELL INTERNATIONAL COMMUNICATIONS LINES TO MULTINATIONAL COMPANIES IN THE US THE INDIVIDUALS SAID AT&T WILL ALSO ASK THE FCC TO REJECT BT'S REQUEST UNTIL US CARRIERS GET SIMILAR RIGHTS IN BRITAIN AT&T'S ARGUMENT IS SIMILAR TO A RECENT ONE BY US AIRLINES THE AIRLINES COMPLAINED THAT BRITISH AIRWAYS PLC SHOULD NOT BE ALLOWED TO PURCHASE A STAKE IN THE USAIR UNIT OF USAIR GROUP INC UNTIL AMERICAN AIRLINES GAIN ACCESS TO A GREATER NUMBER OF MARKETS IN BRITAIN AT&T DOESN'T THINK BT SHOULD GET CARTE BLANCHE UNTIL US COMMUNICATIONS CARRIERS GET SIMILAR RIGHTS SAID ONE INDIVIDUAL CLOSE TO THE SITUATION THE USUALLY COMBATIVE US CARRIERS SEEM TO SIDE WITH AT&T IN THE UK EVERYTHING INCLUDING NETWORK INTERCONNECTION AND RATES HAS TO BE NEGOTIATED WITH BT AND THE CHARGES ARE TWO TO THREE TIMES WHAT THEY ARE IN THE US SAID STUART CHIRON COUNSEL AT SPRINT CORP'S SPRINT INTERNATIONAL UNIT WE COULDN'T SUPPORT BT'S MOVES IN THE US UNTIL THERE'S EQUIVALENCY IN BRITAIN BT WAS UNAVAILABLE FOR COMMENT WHILE SPRINT THE THIRD LARGEST US CARRIER FILED FOR SIMILAR PERMISSION IN THE UK MORE THAN A YEAR AGO BT'S PRIMARY FIGHT IS CLEARLY WITH AT&T AT&T AND BT HAVE AMBITIOUS PLANS TO EXPAND AS GLOBAL CARRIERS AND OFFER MULTINATIONAL CUSTOMERS ONESTOP COMMUNICATIONS SERVICES THIS WAY A US MULTINATIONAL CONCERN COULD CALL OR SEND A DATA MESSAGE TO ITS LONDON OR SYDNEY OFFICE AS EASILY AS IF IT WERE ACROSS THE STREET AND MONTHLY BILLS WOULD BE ITEMIZED AND IN ONE CURRENCY WHILE AT&T SAID IT IS SEEKING TO EXPAND THROUGH PARTNERSHIPS WITH FOREIGN CARRIERS BT IS PUSHING FORWARD WITH A MEGAPROJECT TO BUILD ITS OWN GLOBAL NETWORK BT CALLS ITS BILLIONDOLLARPLUS PROJECT CYCLONE A HIGHCAPACITY MULTIMEDIA NETWORK HANDLING PHONE CALLS COMPUTER FILES AND VIDEO CONFERENCES AS PART OF THE PLAN BT EXPECTS TO HAVE MASSIVE SWITCHING CENTERS OPERATING IN AT LEAST 20 CITIES INCLUDING LONDON NEW YORK FRANKFURT AND SYDNEY BY THE END OF 1993 BY THE YEAR 2002 BT EXPECTS TO HAVE 32 HUBS IN ITS NETWORK CONNECTING EVERY MAJOR CITY BT IS ALSO TRYING TO COMBINE IN SOME WAY WITH SYSTEMSINTEGRATION POWERHOUSE ELECTRONIC DATA SYSTEMS AS A MEANS OF GAINING CLOSER ACCESS TO THE DATA CENTERS OF MULTINATIONAL CORPORATIONS BT HAS BEEN IN TALKS FOR SEVERAL MONTHS WITH THE GENERAL MOTORS CORP UNIT ABOUT BUYING A STAKE IN THE COMPANY SOURCES CLOSE TO BT SAY IT FIGURES THAT ONCE IT HAS ACCESS TO THESE DATA CENTERS IT WILL BE ABLE TO STEER TRAFFIC FROM ITS CUSTOMERS' COMPUTERS TO THE CYCLONE NETWORK AT&T AND BT ARE TRYING TO OUTFLANK EACH OTHER TO SIPHON EACH OTHER'S TRAFFIC SAID RYAN JAMES A SENIOR ANALYST AT YANKEE GROUP A BOSTON RESEARCH FIRM BT COULD END UP WITH LONGTERM TRANSMISSION AND EQUIPMENT CONTRACTS FROM MULTINATIONALS AT&T DOESN'T WANT TO BE PREEMPTED AT&T SHOWED RECENTLY HOW FAR IT WILL GO TO PROTECT ITS BASE WHEN IT RETALIATED AGAINST THE STENTOR LONGDISTANCE CONSORTIUM IN CANADA WHICH JOINED FORCES WITH AT&T NEMESIS MCI COMMUNICATIONS CORP AT&T HIT BACK BY AGREEING TO BUY A STAKE IN CANADA'S MCILIKE STARTUP UNITEL COMMUNICATIONS FOR MORE THAN 300 MILLION 9304150088 930415 REVIEW & OUTLOOK EDITORIAL THE GODFATHER THE BUSINESS TYPES WE TALK TO THESE DAYS ARE ALL HIGH ON CHINA LOVE THAT GROWTH AND WHO WOULDN'T BUT THEN THERE'S THE TALK ABOUT CRIME AND CORRUPTION IN CHINA SO IT'S A LITTLE DISCONCERTING WHEN HIGH CHINESE OFFICIALS START TALKING ABOUT HOW THEY ADMIRE HONG KONG'S GANGSTER COMMUNITY THIS WAS BROUGHT OUT MOST STARKLY BY THE REMARKABLE COMMENTS LAST WEEK OF CHINA'S MINISTER OF PUBLIC SECURITY TAO SIJI MR TAO CHINA'S HIGHEST LAW ENFORCEMENT OFFICIAL SAID THAT THE HONG KONG GANGSTERS KNOWN AS TRIADS CAN BE GOOD PEOPLE HE ALSO SAID THAT FOR FIVE YEARS CHINESE AUTHORITIES HAVE MADE OFFICIAL CONTACTS WITH SENIOR TRIADS AND WHY NOT ASKS MR TAO AS FOR ORGANIZATIONS LIKE THE TRIADS IN HONG KONG AS LONG AS THESE PEOPLE ARE PATRIOTIC AS LONG AS THEY ARE CONCERNED WITH HONG KONG'S PROSPERITY AND STABILITY WE SHOULD BE UNITED WITH THEM HOW INTERESTING IN THE HONG KONG THAT HONG KONG PEOPLE LIVE IN TRIADS ARE A MENACE SHAKING DOWN MOMANDPOP STORES FOR PROTECTION MONEY AND BRINGING DRUGS AND GUNS INTO THE TERRITORY IN MR TAO'S HONG KONG THEY ARE USEFUL ALLIES A SOURCE OF STABILITY THERE IS NO BETTER EXAMPLE OF THE WILDLY DIFFERENT PERSPECTIVES OF HONG KONG AND CHINA THAN THIS THE RULE OF LAW HAS LONG GUARANTEED HONG KONG'S INDIVIDUAL RIGHTS AND PRIVATE PROPERTY THIS HAS BEEN THE SOURCE OF THE TERRITORY'S STABILITY AND PROSPERITY FOR MR TAO RULE OF LAW IS APPARENTLY A CONCEIT GOVERNMENT IS MERELY A TANGLE OF ALLIANCES TO BOLSTER STATE AUTHORITY THAT IS A WAY OF THINKING THAT CAN ONLY FOSTER IN HONG KONG THE CORRUPTION AND CONTEMPT FOR GOVERNMENT WIDESPREAD ON THE MAINLAND SUCH DIFFERENCES GO TO THE HEART OF WHAT KIND OF SOCIETY HONG KONG WILL BE AFTER 1997 THE CURRENT SPITTING MATCH BETWEEN BRITAIN AND CHINA OVER POLITICAL REFORM PLANS FOR HONG KONG HAS PROGRESSED FROM TALKS ABOUT TALKS TO NO TALKS TO THE RECENT ANNOUNCEMENT OF TALKS THE LATTER IS SEEN AS A GREAT LEAP FORWARD IN SINOBRITISH COOPERATION THE PROBLEM OF COURSE IS THAT ONCE THE REPRESENTATIVES FROM BRITAIN AND CHINA SIT DOWN ACROSS THE TABLE FROM EACH OTHER THEY MAY NOT HAVE MUCH TO SAY THE TWO SIDES ARE SO FAR APART THAT THE CHANCES OF FORGING AN AGREEMENT LOOK DOOMED AND FOR BRITAIN ANY SUBSTANTIVE COMPROMISE WILL BE INTERPRETED AS A SIGN OF WEAKNESS AND LACK OF COMMITMENT RECALL WHAT'S AT ISSUE UNDER THE SET OF POLITICAL REFORMS THAT BEIJING HAS SO STRENUOUSLY OBJECTED TO HONG KONG GOVERNOR CHRIS PATTEN WANTS TO EXPAND THE FRANCHISE FOR NINE LEGISLATIVE COUNCIL CONSTITUENCIES CHOSEN BY A TRADE OR PROFESSION AND HAVE DIRECTLY ELECTED LOCAL OFFICIALS DECIDE THE COMPOSITION OF 10 MORE HE ALSO WANTS TO LOWER THE VOTING AGE TO 18 AND TO ELECT RATHER THAN APPOINT NEIGHBORHOOD COMMITTEES THAT'S IT THE FUNDAMENTAL PROBLEM HERE IS THAT BEIJING'S VISION FOR HONG KONG IS VERY DIFFERENT THAN THE ONE BRITAIN IS PROPOSING AND FROM WHAT HONG KONG PEOPLE HAVE INDICATED THEY WANT BEIJING'S IDEAL POST1997 HONG KONG FOR EXAMPLE WOULD BE RULED BY AN APPOINTED ELITE WITH STRONG TIES TO CHINA THE POINT OF CHRIS PATTEN'S PROPOSALS HOWEVER IS TO CREATE A LEGISLATURE THAT CAN EFFECTIVELY REPRESENT THE VIEWS OF HONG KONG WHEN HONG KONG PEOPLE GOT THEIR ONLY CHANCE TO VOTE DIRECTLY FOR LEGISLATIVE COUNCIL MEMBERS IN 17 OF THE 18 SEATS AT STAKE THEY CHOSE CANDIDATES WHO ADVOCATED GREATER DEMOCRACY THERE'S NOTHING TO BE SAID AGAINST BRITAIN TALKING WITH CHINA IT MAKES GOOD SENSE TO HAVE LINES OF COMMUNICATION WITH HONG KONG'S MOST IMPORTANT ECONOMIC PARTNER AND FUTURE SOVEREIGN BUT WITH THE LIKES OF TAO SIJI TALKING LIKE THE GODFATHER NO COMPROMISE IS BETTER THAN A BAD ONE 9304150087 930415 BUSINESS BRIEF FIBREBOARD CORP FIRSTPERIOD NET ROSE 17 FROM HIGH LUMBER PRICES FIBREBOARD CORP CONCORD CALIF SAID EARNINGS ROSE 17 IN THE FIRST QUARTER REFLECTING HIGH LUMBER PRICES AND INCREASED BUSINESS AT ITS LAKE TAHOE SKI RESORT THE COMPANY EARNED 64 MILLION OR 149 A SHARE COMPARED WITH 55 MILLION OR 135 A SHARE A YEAR EARLIER SALES ROSE 6 TO 749 MILLION FROM 709 MILLION FIBREBOARD SAID THAT BECAUSE OF ITS COPIOUS CASH FLOW IT IS EVALUATING ACQUISITION OPPORTUNITIES IN ITS THREE BUSINESS AREAS OF WOOD PRODUCTS INSULATION PRODUCTS AND RESORT OPERATION 9304150086 930415 YOUR MONEY MATTERS VARIABLE ANNUITIES WILT UNDER POOR ACCOUNT PICKS BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL WHAT DO MANY INDIVIDUAL INVESTORS HAVE IN COMMON WITH HUNDREDS OF THOUSANDS OF TEACHERS MEDICAL WORKERS AND CORPORATE EMPLOYEES THEY'VE GOT A CHUNK OF MONEY IN TAXDEFERRED VARIABLE ANNUITIES AND HAVE NO IDEA ABOUT HOW BEST TO INVEST IT DURING THE PAST YEAR INDIVIDUAL INVESTORS POURED MORE THAN 8 BILLION INTO VARIABLE ANNUITIES SOLD BY INSURANCE COMPANIES BROKERAGE FIRMS AND INCREASINGLY BANKS MEANWHILE EMPLOYEES ADDED 12 BILLION TO THESE MUTUAL FUNDSTYLE INVESTMENTS THROUGH EMPLOYERSPONSORED RETIREMENT PLANS ACCORDING TO CERULLI ASSOCIATES IN BOSTON ALTOGETHER THE MONEY IN VARIABLE ANNUITIES TOTALS 215 BILLION BUT EVEN THOUGH PEOPLE HAVE PUMPED A SIGNIFICANT PART OF THEIR RETIREMENT NEST EGGS INTO VARIABLE ANNUITIES THE EVIDENCE IS THAT THEY HAVE LITTLE IDEA HOW TO GET THE MOST OUT OF THESE INVESTMENTS WHILE VARIABLE ANNUITIES CONTAIN A VARIETY OF FUNDS OR SUBACCOUNTS MANY INVESTORS PUT MOST OR EVEN ALL OF THEIR MONEY INTO THE LOWERRETURN OPTIONS THEY WANT TO STICK WITH FIXEDINCOME INVESTMENTS SAYS EDWIN MCCAUSLAND VICE PRESIDENT AND MANAGING DIRECTOR AT MASSACHUSETTS MUTUAL LIFE INSURANCE CO BUT IF THEY'RE IN FOR THE LONG HAUL THEY SHOULD CONSIDER GROWTH FUNDS THAT INVEST IN STOCKS THAT'S BECAUSE STOCKS OUTPERFORM FIXEDINCOME INVESTMENTS SUCH AS BONDS OVER TIME IN ADDITION THE HIGHER RETURN OF STOCKS PROVIDES A BETTER HEDGE AGAINST INFLATION AND BOOSTS THE ADVANTAGE OF TAXDEFERRED COMPOUNDING THAT INVESTORS GET IN VARIABLE ANNUITIES INDEED THE BIG APPEAL OF VARIABLE ANNUITIES IS THAT LIKE INDIVIDUAL RETIREMENT ACCOUNTS EARNINGS ARE TAXDEFERRED UNTIL TAKEN OUT PRESUMABLY AT OR AFTER RETIREMENT MEANWHILE INVESTORS CAN ALLOCATE THEIR SAVINGS AMONG A HANDFUL OF STOCK BOND AND CASHEQUIVALENT ACCOUNTS IN THE CONTRACT AND SWITCH AMONG THEM WITHOUT TAX CONSEQUENCES THE RETURN THEREFORE VARIES HENCE THE NAME BESIDES THOSE PURCHASED DIRECTLY BY INVESTORS VARIABLE ANNUITIES ARE COMMONLY FOUND IN 403B PLANS USED BY TEACHERS AND HOSPITAL WORKERS AS WELL AS IN 401K AND PROFITSHARING PLANS DESPITE THE APPEAL OF STOCKS FOR LONGTERM INVESTING HALF THE MONEY IN VARIABLE ANNUITIES IS IN THE FIXEDRETURN ACCOUNTS THE CONTRACTS OFFER UNLIKE STOCK AND BOND ACCOUNTS THE FIXED ACCOUNT PAYS A GUARANTEED RATE OF RETURN FOR A PERIOD OF TIME TYPICALLY ONE TO THREE YEARS THE AVERAGE ONEYEAR GUARANTEED RATE EFFECTIVE APRIL 1 WAS 467 ACCORDING TO MORNINGSTAR INC A CHICAGO FIRM THAT TRACKS PERFORMANCE OF MUTUAL FUNDS AND VARIABLE ANNUITIES THAT ISN'T TERRIBLE BUT RATES HAVE BEEN COMING DOWN AND OVER TIME THE RETURNS WON'T BE AS REWARDING AS STOCKS INVESTORS SHOULD ALSO CHOOSE HIGHERRETURNING OPTIONS TO OVERCOME THE DRAG OF THE ANNUAL FEES THAT VARIABLE ANNUITY CONTRACTS CHARGE THESE INCLUDE AN AVERAGE ANNUAL CONTACT CHARGE OF 125 PLUS ANNUAL FUND EXPENSES WHICH CAN BRING TOTAL COSTS TO ABOUT 2 A YEAR ACCORDING TO MORNINGSTAR INVESTORS PAY THE CHARGES EVEN ON THE AMOUNT THEY KEEP IN LOWYIELDING FIXEDINCOME VARIABLE ANNUITY ACCOUNTS IF ALL INVESTORS REALLY WANT IS A LOWYIELDING TAXDEFERRED INVESTMENT THEY CAN GET IT MORE CHEAPLY IN A FIXED ANNUITY SAYS JENNIFER STRICKLAND EDITOR OF MORNINGSTAR'S VARIABLE ANNUITY REPORT FIXED ANNUITIES ARE CONTRACTS THAT OFFER ONLY ONE ACCOUNT WHICH PAYS A FIXED RETURN UNLIKE VARIABLE ANNUITIES THEY DON'T CARRY AN ANNUAL CONTRACT CHARGE INVESTORS SHOULD BE PARTICULARLY CAREFUL NOT TO KEEP MUCH MONEY IN THE MONEYMARKET ACCOUNTS OFFERED BY VARIABLE ANNUITIES SINCE THEY WILL PAY THE CONTRACT CHARGE ON THAT MONEY PLUS AN ADDITIONAL 053 FOR THE MONEYFUND'S EXPENSES BRINGING THE TOTAL AVERAGE COSTS ON MONEY ACCOUNTS TO 178 PAYING THAT MUCH FOR CASH DOESN'T MAKE SENSE SAYS MS STRICKLAND SO WHAT SHOULD YOU DO INVESTORS WHO AREN'T COMFORTABLE WITH A FULLSCALE PLUNGE INTO STOCKS MIGHT WANT TO CONSIDER ANNUITY ACCOUNTS THAT PROVIDE BOTH INCOME AND CAPITAL GAINS OBVIOUSLY MANY PEOPLE MOVING FROM CDS OR FIXED ACCOUNTS AREN'T READY FOR SMALLCAP OR GLOBAL FUNDS SAYS PHILIP KEARNS A VICE PRESIDENT OF INSURANCE PRODUCTS AT FRANKLIN RESOURCES FRANKLIN VALUMARK II AN ANNUITY OFFERED BY NORTH AMERICAN LIFE & CASUALTY CO HAS A NUMBER OF FIXEDINCOME ACCOUNTS THAT PROVIDE BOTH GROWTH AND INCOME INCLUDING A UTILITY AND A RISINGDIVIDEND ACCOUNT THAT INVESTS ONLY IN COMPANIES WITH TRACK RECORDS OF INCREASING THEIR DIVIDENDS THESE ACCOUNTS ARE GOOD FOR PEOPLE WITH LESS RISK TOLERANCE OR A SHORTER TIME HORIZON SAYS MS STRICKLAND THEY MAY NOT HAVE HIGHOCTANE GROWTH BUT THEY HAVE STEADY GROWTH AS WELL AS INCOME DURING THE PAST THREE YEARS THE UTILITY ACCOUNT RETURNED AN ANNUAL AVERAGE OF 137 AND THE RISINGDIVIDEND PORTFOLIO RETURNED 147 CONFIDENT INVESTORS MIGHT WANT TO CONSIDER ANNUITIES LIKE PHOENIX HOME LIFE MUTUAL INSURANCE CO'S BIG EDGE PLUS PHOENIX MONEY MANAGERS ARE AGGRESSIVE STOCK INVESTORS WHICH IS WHY THE ANNUITY'S ACCOUNTS HAVE HIGH TURNOVER BUT BECAUSE THE ACCOUNTS ARE IN THE TAXDEFERRED CONTRACT INVESTORS DON'T NEED TO WORRY ABOUT PAYING CAPITAL GAINS TAXES EVERY YEAR THIS IS THE PLACE TO BE AGGRESSIVE IF YOU'VE GOT IT IN YOU SAYS MS STRICKLAND THEIR GROWTH AND TOTAL RETURN FUNDS HAVE SURPASSED THEIR AVERAGES AND LEFT THEM IN THE DUST OVER THE PAST THREE YEARS THE GROWTH ACCOUNT RETURNED AN ANNUAL AVERAGE OF 183 WHILE THE TOTAL RETURN ACCOUNT RETURNED 157 VARIABLE ANNUITY INVESTORS CAN REDUCE VOLATILITY AND RISK WHEN INVESTING IN STOCKS BY DIVERSIFYING AMONG ACCOUNTS A GOOD MIX MIGHT INCLUDE THE MORE AGGRESSIVE ACCOUNTS INCLUDING GROWTH AND SMALLCOMPANY GROWTH WITH LESS VOLATILE ONES SUCH AS VALUE EQUITYINCOME AND TOTALRETURN ACCOUNTS SAYS MS STRICKLAND MANY INVESTORS ALREADY PUT MONEY INTO BALANCED ACCOUNTS WHICH INCLUDE A MIXTURE OF STOCKS AND BONDS STILL WHILE HAVING A NUMBER OF GOODQUALITY STOCK ACCOUNTS IS DESIRABLE NOT ALL OF THEM MAY BE EFFICIENT CHOICES FOR VARIABLE ANNUITY INVESTORS INTERNATIONAL ACCOUNTS MAY BE TOO EXPENSIVE MANY ARE NEW SO THEIR EXPENSES ARE EXTREMELY HIGH WHEN YOU ADD THE INSURANCE EXPENSE YOU COULD BE PAYING AS MUCH AS 4 ANNUALLY ON SOME CONTRACTS SAYS MS STRICKLAND IF THE INTERNATIONAL ACCOUNT IN AN INVESTOR'S CONTRACT IS TOO EXPENSIVE HE OR SHE MIGHT CONSIDER GETTING THEIR INTERNATIONAL FIX IN THEIR NONANNUITY ACCOUNTS INCLUDING IRAS FOR OTHER REASONS INDEX ACCOUNTS MAY NOT BE EFFICIENT CHOICES EITHER INDEX ACCOUNTS WHICH INVEST THE TOTAL SPECTRUM OF STOCKS IN AN INDEX SUCH AS STANDARD & POOR'S 500STOCK INDEX HAVE TAXDEFERRAL BUILT IN SINCE THE ACCOUNTS ARE PASSIVELY MANAGED STOCKS ARE RARELY BOUGHT OR SOLD THEY KICK OFF FEW GAINS INVESTORS WHO WANT TO MIRROR THE MARKET'S RETURN AND HAVE AN ELEMENT OF TAXDEFERRAL CAN DO INDEX INVESTING MORE CHEAPLY WITH MUTUAL FUNDS OUTSIDE THEIR VARIABLE ANNUITY WHATEVER SELECTIONS INVESTORS MAKE THEY CAN DO THEMSELVES A BIG FAVOR IF THEY AVOID SHIFTING MONEY FROM ACCOUNT TO ACCOUNT RASHLY ALTHOUGH THEY WON'T TRIGGER TAX CONSEQUENCES THEY WILL PROBABLY MOVE THE MONEY AT THE WRONG TIME WHEN AN INVESTMENT GOES DOWN PEOPLE BAIL OUT ESPECIALLY IN VARIABLE ANNUITIES SINCE THERE'S NO TAX PENALTY SO THEY LOCK IN THEIR LOSS SAYS MS STRICKLAND INDIVIDUALS AND EMPLOYEES WITH ASSETS IN VARIABLE ANNUITIES ARE PUTTING TOO MUCH MONEY INTO LOWERRETURNING FIXED ACCOUNTS MONEY MARKETS AND BOND FUNDS FINANCIAL ADVISERS SAY ANNUITY INVESTORS COULD PROFIT BY PLACING A HIGHER PERCENTAGE OF THEIR SAVINGS INTO STOCK INVESTMENTS 9304150085 930415 INTERNATIONAL BRIEF DAIMLERBENZ AG DEUTSCHE AEROSPACE UNIT SEES ANOTHER LOSS THIS YEAR DEUTSCHE AEROSPACE AG FACING LOSSES THIS YEAR AND IN 1994 YESTERDAY BECAME THE LATEST MEMBER OF GERMANY'S SPRAWLING DAIMLERBENZ AG GROUP TO PAINT A BLEAK BUSINESS OUTLOOK THE DEFENSE AND AEROSPACE GROUP KNOWN AS DASA WILL POST A NET LOSS THIS YEAR ALTHOUGH IT SHOULDN'T EXCEED THE 1992 DEFICIT OF 341 MILLION MARKS 2157 MILLION COMPANY OFFICIALS SAID AT A NEWS CONFERENCE IN MUNICH THE GROUP WILL CUT 8000 JOBS IN THE NEXT TWO YEARS FROM ITS 81800MEMBER WORK FORCE AS DEFENSE CONTRACTS AND CIVILIAN JET ORDERS CONTINUE TO SHRINK DAIMLER'S MERCEDESBENZ AG AUTO DIVISION AND ITS AEG AG ELECTRONICS AND ELECTRICAL ENGINEERING DIVISION EXPECT TO SEE OPERATING LOSSES THIS YEAR 9304150084 930415 MARKETSCAN BARGAIN HUNTERS BAG MORE STORE BRANDS BY KATHLEEN DEVENY JAMES LAM STRIKES FEAR INTO THE HEARTS OF MARKETERS WHO DON'T EVEN KNOW HIM THE 35YEAROLD SYSTEMS ANALYST AT A NEW YORK BANK IS THAT BANE OF THE BIG BRANDS A PRICECONSCIOUS SHOPPER IN SEARCH OF BARGAINS HE ROAMS THE AISLES OF TWO LOCAL GROCERY STORES AND TREKS ONCE A MONTH TO A WAREHOUSECLUB STORE HE CAREFULLY PICKS AND CHOOSES BETWEEN NATIONAL BRANDS AND STORE BRANDS NEARLY ALWAYS SELECTING THE PRIVATELABEL VERSIONS OF SUCH PRODUCTS AS COLD MEDICINE AND LAUNDRY DETERGENT BRAND NAMES ALONE AREN'T ENOUGH ANY MORE SAYS MR LAM MAYBE NOW MARKETERS WILL HAVE TO START MAKING PRODUCTS WE ACTUALLY WANT TO BUY MARKETERS ALREADY REALIZE THAT MR LAM HAS PLENTY OF COMPANY IN HIS BARGAIN HUNTING DESPITE THE ECONOMIC RECOVERY LEGIONS OF CONSUMERS ARE NO LONGER AUTOMATICALLY WILLING TO PAY UP FOR BIG BRANDS EVEN IF THEY CAN EASILY AFFORD THEM PRIVATELABEL SALES CONTINUE TO GROW EVEN IN CATEGORIES ONCE CONSIDERED BASTIONS OF BRAND LOYALTY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SAYS PRIVATELABEL GOODS ACCOUNTED FOR 184 OF ALL ITEMS SOLD IN GROCERY STORES AND 145 OF TOTAL SUPERMARKET DOLLAR VOLUME DURING THE 13 WEEKS ENDED DEC 27 DOLLAR SALES OF PRIVATELABEL GOODS GREW 32 TO 678 BILLION COMPARED WITH THE YEAREARLIER PERIOD TWICE THE GROWTH RATE OF NATIONAL BRANDS THE CONSEQUENCES HAVE BEEN DRAMATIC FOR MARKETERS OF NATIONAL BRANDS MANY OF WHOM HAD UNDERESTIMATED SHOPPERS' WILLINGNESS TO LOAD UP ON LOWERPRICED RIVALS EARLIER THIS MONTH PHILIP MORRIS COS ANNOUNCED PLANS TO CHOP PRICES OF ITS PREMIUM MARLBORO CIGARETTES BY AS MUCH AS 20 TO BETTER COMPETE AGAINST BUDGET SMOKES NEWS THAT ONE OF THE WORLD'S PREEMINENT BRANDS WAS FEELING THE PINCH SENT PHILIP MORRIS'S SHARES TUMBLING AND BATTERED THE STOCKS OF OTHER CONSUMERPRODUCTS MARKETERS INCLUDING COLGATEPALMOLIVE CO CAMPBELL SOUP CO AND HERSHEY FOODS CORP THIS WEEK PROCTER & GAMBLE CO ANNOUNCED PLANS TO CUT THE PRICE OF ITS PAMPERS DIAPERS 5 AND SLASH THE PRICE OF ITS LUVS BRAND 16 IN AN EFFORT TO FEND OFF PRIVATELABEL PRODUCTS EFFECTIVE IN MAY THE DROP MARKS THE THIRD TIME IN 10 MONTHS THAT P&G HAS BEEN FORCED TO CUT DIAPER PRICES THE NEWS FOR MARKETERS ONLY GETS WORSE A RECENT STUDY OF THE PERFORMANCE OF PRIVATELABEL PRODUCTS CONDUCTED BY INFORMATION RESOURCES FOUND A NEW BREED OF PENNYPINCHING CONSUMER IS HELPING TO SPUR PRIVATELABEL SALES EMERGING PRIVATELABEL CATEGORIES SUCH AS DIAPERS AND BOTTLED WATER ARE ATTRACTING AN ENTIRELY NEW GROUP OF BUYERS COMPARED WITH HEAVY USERS OF MORE TRADITIONAL PRIVATELABEL PRODUCTS LIKE MILK AND BREAD THE NEW BUYERS ARE A BIT MORE UPSCALE WITH AVERAGE HOUSEHOLD INCOME RANGING FROM 25000 TO 55000 THEY ARE ALSO SLIGHTLY OLDER THAN TRADITIONAL PRIVATELABEL BUYERS TYPICALLY IN THEIR 30S VERYLOWINCOME PEOPLE MAY BE AMONG THE LEAST LIKELY TO DROP A BOX OF IGA CORN FLAKES OR KROGER IBUPROFEN INTO THEIR CARTS THAT MAY BE PARTLY DUE TO THE FACT THAT QUALITY PRIVATELABEL GOODS ARE NOT ALWAYS READILY AVAILABLE TO THESE SHOPPERS BUT MARKETING EXPERTS ALSO SPECULATE THAT THESE CONSUMERS MAY BE LESS WILLING TO EXPERIMENT WITH UNFAMILIAR PRODUCTS BECAUSE THEY CAN'T AFFORD TO MAKE A MISTAKE AND BECAUSE THEY DON'T WANT TO BE PERCEIVED AS UNABLE TO AFFORD QUALITY GOODS THE TOP 10 PRIVATELABEL CATEGORIES WHICH INCLUDE SUCH COMMODITY ITEMS AS MILK BREAD AND ICE CREAM STILL ACCOUNT FOR ABOUT 50 OF ALL PRIVATELABEL SALES IN SUPERMARKETS MOST SHOPPERS SAMPLE SUCH PRIVATELABEL FARE AT LEAST ONCE ACCORDING TO INFORMATION RESOURCES SOME 44 OF HOUSEHOLDS HAVE TRIED PRIVATELABEL SOFT DRINKS WHILE 97 HAVE PURCHASED PRIVATELABEL BREADS OR ROLLS THE GROWTH OF PRIVATELABEL PRODUCTS IS PART OF A LARGER BACKLASH AGAINST THE EXCESSES OF THE 1980S SAYS RUSSELL FERSTANDIG PRESIDENT OF COMPETITIVE ADVANTAGE CONSULTING IN FRANKLIN LAKES NJ DR FERSTANDIG A PSYCHIATRIST SAYS THAT PEOPLE WHO FEEL THEY HAVE BEEN WASTEFUL IN THE PAST ARE LOOKING FOR WAYS TO PROVE THEY HAVE CHANGED IF I AM A PERSON THAT HAS BEEN SOMEWHAT WASTEFUL IN MY SPENDING I WANT TO DO SOMETHING THAT SHOWS I AM MORE PRUDENT HE SAYS THE PHILOSOPHY REPRESENTS A STRIKING SHIFT IN CONSUMERS' MOOD AND ONE THAT MAY HAVE BEEN BROUGHT ON PARTLY BY A MISCALCULATION ON THE PART OF NATIONAL MARKETERS THROUGHOUT THE 1980S FOOD COMPANIES KEPT SALES HUMMING DESPITE FLAT POPULATION GROWTH BY STEADILY JACKING UP THEIR PRICES CONSUMERS BLITHELY PAID UP BECAUSE THEY VIEWED NATIONALLY ADVERTISED BRANDS AS SYMBOLS OF QUALITY NO MORE DURING THE PROLONGED ECONOMIC SLUMP MANY CONSUMERS EXPERIMENTED WITH LESS EXPENSIVE ALTERNATIVES TO THE BIG BRANDS AND FOUND PLENTY OF THEM TO BE PERFECTLY ADEQUATE AND SOMETIMES SUPERIOR AT THE SAME TIME RETAILERS BEGAN AGGRESSIVELY COURTING PRICECONSCIOUS SHOPPERS MANY STORES NOW DISPLAY THEIR OWN PRODUCTS BESIDE NATIONALLY ADVERTISED RIVALS WHICH CAN SOMETIMES COST TWICE AS MUCH AS PRIVATELABEL PRODUCTS AND RETAILERS ARE INCREASINGLY MIMICKING THE MARKETING TACTICS OF THEIR NATIONAL RIVALS EVEN HAWKING THEIR OWN STORE BRANDS WITH SOPHISTICATED BROADCAST AND PRINT ADS MANY STORE OPERATORS HAVE UPGRADED THEIR OWN WARES IN RECENT YEARS GIVING SHOPPERS A GROWING ARRAY OF TONY PRIVATELABEL PRODUCTS TO CHOOSE FROM AT SMITH'S FOOD & DRUG CENTERS INC A CHAIN OF 120 STORES BASED IN SALT LAKE CITY PRIVATELABEL PRODUCTS ACCOUNT FOR ABOUT 20 OF TOTAL REVENUES THE COMPANY OPERATES THREE OF ITS OWN DAIRY FACILITIES AND EVEN INSTALLED A SPECIAL RAPID FREEZING SYSTEM TO IMPROVE THE TEXTURE OF ITS CREAMY PREMIUM CLASSIC BRAND OF ICE CREAM AT 349 A HALF GALLON PREMIUM CLASSIC IS UP TO 1 CHEAPER THAN COMPARABLE NATIONAL BRANDS WE GOT INTO THIS BUSINESS SO WE COULD BETTER CONTROL THE QUALITY OF THE UPSCALE PRODUCTS FOR OUR OWN STORES SAYS ROBERT LEE A VICE PRESIDENT AND DIRECTOR OF MANUFACTURING FOR SMITH'S PEOPLE DON'T MAKE A BUYING DECISION SOLELY ON PRICE THEY'RE ALSO INTERESTED IN QUALITY PERHAPS BECAUSE CONSUMERS NO LONGER VIEW ALL PRIVATELABEL BRANDS AS BARGAINBASEMENT ALTERNATIVES TO NATIONAL BRANDS PRIVATELABEL SALES HAVE CONTINUED TO RISE DESPITE THE NASCENT ECONOMIC RECOVERY SOME PRIVATELABEL MAKERS PREDICT GROWTH OF THE UPSCALE STORE BRANDS WILL CONTINUE AND COULD REACH 30 OF TOTAL GROCERY SALES BY THE END OF THE DECADE THE FOOTPRINT OF THE BABY BOOMER IS QUALITY SAYS CAROL COLMAN A MARKETING CONSULTANT IN NORTH SALEM NY BUT BUYING THESE BRANDS HAS BECOME A BADGE OF HOW SMART YOU ARE I DON'T THINK THEY'LL GO AWAY 9304150083 930415 LAW WISCONSIN COURT BACKS RENT BIAS FAVORING MARRIAGE BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL LANDLORDS CAN REFUSE TO RENT TO UNMARRIED COUPLES WISCONSIN'S SUPREME COURT SAID BECAUSE THE STATE'S PUBLIC POLICY PROMOTES MARRIAGE THE UNUSUAL RULING TOUCHES ON A QUESTION THAT IS ALSO BEFORE COURTS IN SEVERAL OTHER STATES WHAT HAPPENS WHEN DISCRIMINATION LAWS CONFLICT WITH THE MORAL AND RELIGIOUS VIEWS OF A LANDLORD IN THE WISCONSIN CASE A LANDLORD IN THE TOWN OF SUN PRAIRIE WAS SUED BY HIS COUNTY GOVERNMENT AFTER HE TURNED AWAY THREE SINGLE WOMEN WHO WANTED TO SHARE A DUPLEX HE ALSO REJECTED A HOUSEHOLD COMPOSED OF TWO SINGLE WOMEN AND THE CHILDREN OF ONE OF THE WOMEN WISCONSIN LAW PROHIBITS HOUSING DISCRIMINATION BASED ON MARITAL STATUS BUT LIVING TOGETHER IS CONDUCT' NOT STATUS' THE COURT SAID IN A 43 DECISION THE COURT DECLARED INVALID A SECTION OF STATE LAW THAT PROTECTS COHABITANTS FROM HOUSING DISCRIMINATION CALLING SUCH PROTECTION INCONSISTENT WITH THE PUBLIC POLICY OF THIS STATE WHICH SEEKS TO PROMOTE THE STABILITY OF MARRIAGE AND FAMILY THE COURT CITED A LENGTHY PASSAGE IN STATE LAW THAT DESCRIBES MARRIAGE AS BASIC TO MORALITY AND CIVILIZATION AND OF VITAL INTEREST TO SOCIETY AND THE STATE THE RULING CAN BE READ TO APPLY NOT ONLY TO ALTERNATIVE LIVING ARRANGEMENTS BUT ALSO TO COLLEGEROOMMATE SITUATIONS THE DISSENTING JUDGES SAID IN OPPOSING THE DECISION IT WAS UNCLEAR HOW THE RULING WHICH REVERSED A LOWER COURT WOULD AFFECT A STATE HOUSING LAW THAT BARS DISCRIMINATION AGAINST LESBIANS AND GAY MEN MY GUESS IS THAT THE STATE CIRCUIT COURTS THAT WANT TO PROTECT ON THE BASIS OF SEXUAL ORIENTATION WILL CONTINUE TO DO SO AND THOSE THAT DON'T WILL HAVE AN EASY OUT SAID PEG O'DONNELL ASSISTANT CORPORATION COUNSEL FOR DANE COUNTY WHICH INCLUDES SUN PRAIRIE IN A DISSENT THREE JUSTICES SAID THE LANDLORD HAD ILLEGALLY DISCRIMINATED THEY CRITICIZED THE MAJORITY FOR MORALIZING ABSENT ANY EVIDENCE THAT THESE INDIVIDUALS WERE INVOLVED IN ANYTHING OTHER THAN A COSTSHARING RELATIONSHIP I CAN NOT CONCEIVE HOW ALLOWING THESE INDIVIDUALS TO LIVE TOGETHER COOPERATIVELY WOULD IN ANY WAY AFFECT THE HEALTH AND WELLBEING OF WISCONSIN FAMILIES AND MARRIAGES WROTE CHIEF JUSTICE NATHAN S HEFFERNAN IN THE DISSENT THE WISCONSIN LANDLORD DWIGHT NORMAN SAID IN AN INTERVIEW THAT HE PREFERS TO RENT TO MARRIED COUPLES WITH CHILDREN ALTHOUGH HE WILL ALSO RENT TO SINGLE PEOPLE LIVING ALONE HE SAID HE DEVELOPED HIS TENANT POLICY AFTER HE AND HIS WIFE ENCOUNTERED DISCRIMINATION AGAINST LARGE FAMILIES BACK WHEN THEY FIRST SOUGHT HOUSING IN THE 1960S I HAD A FAMILY OF FOUR CHILDREN AND NOBODY WANTED TO RENT TO US HE SAID 9304150082 930415 ECONOMY VAT POSSIBILITY IS RECONSIDERED AT WHITE HOUSE NATIONAL SALES TAX RULED OUT IN FEBRUARY DRAWS ANOTHER LOOK IN APRIL BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE REOPENED THE DOOR TO A BROADBASED CONSUMPTION LEVY SUCH AS A VALUEADDED TAX TO HELP FINANCE PRESIDENT CLINTON'S HEALTHCARE OVERHAUL PROPOSAL THE PRESIDENT RULED OUT SUCH A TAX IN FEBRUARY BUT HIS COMMUNICATION DIRECTOR GEORGE STEPHANOPOULOS CONCEDED YESTERDAY THAT THE HEALTH CARE TASK FORCE HEADED BY HILLARY RODHAM CLINTON COULD PROPOSE THE TAX TO THE PRESIDENT IF AN ARGUMENT IS MADE THE PRESIDENT WILL CLEARLY LISTEN TO IT SAID MR STEPHANOPOULOS WHO HAD IN THE PAST ALONG WITH OTHER CLINTON ADMINISTRATION OFFICIALS RULED OUT SUCH A TAX WHICH IS PRAISED BY SOME IN THE CORPORATE WORLD BUT OPPOSED BY MANY CONSUMERS HOWEVER SOME ADMINISTRATION OFFICIALS REMAIN WARY OF A VAT ALTHOUGH IT COULD RAISE CONSIDERABLE FUNDS THEY SAY THE HEALTHCARE PROPOSAL WILL BE CONTROVERSIAL ITSELF AND A VAT WOULD ADD TO THE APPREHENSION TREASURY SECRETARY LLOYD BENTSEN WHOSE OPINION WIELDS CONSIDERABLE WEIGHT WITH THE PRESIDENT HAS RAISED DOUBTS ABOUT WHETHER A VAT COULD BE PROPOSED NOW PARTICULARLY BECAUSE OF ITS COMPLEXITY AND THE FACT THAT MR CLINTON ALREADY HAS PROPOSED TAX INCREASES IN HIS ECONOMIC PACKAGE MR BENTSEN NOTED IN A RECENT SPEECH THAT LEADERS IN CANADA AND JAPAN SUFFERED SEVERE POLITICAL DAMAGE FROM THE BACKLASH AGAINST VATS IN THEIR COUNTRIES MR STEPHANOPOULOS WAS PRESSED TO ADDRESS THE ISSUE PUBLICLY AND QUELL SOME OF THE CONFUSION AFTER TWO ADMINISTRATION OFFICIALS SAID A VAT WAS BACK ON THE TABLE ALICE RIVLIN DEPUTY DIRECTOR OF THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET YESTERDAY TOLD THE NATIONAL ASSOCIATION OF MANUFACTURERS THAT A VAT OR SOME OTHER VARIATION OF A NATIONAL SALES TAX IS CLEARLY A POSSIBLE CANDIDATE FOR FINANCING THE HEALTHCARE PACKAGE SHE EVEN SEEMED TO CAMPAIGN FOR IT BY SAYING THE VALUEADDED TAX MAKES SENSE FOR A COUNTRY THAT WANTS TO ENCOURAGE INVESTMENT MOREOVER HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA TOLD USA TODAY THAT A VAT COULD BE USED FOR HEALTH CARE BUT HER PRESS SECRETARY AVIS LAVELLE CAUTIONED THAT IT IS MR CLINTON WHO WILL MAKE DECISIONS ON WHAT IS THE MOST VIABLE OPTION FOR FINANCING SHE SAID THAT WHEN TASK FORCE MEMBERS SPEAK OF THINGS BEING CONSIDERED THEY ARE TALKING ABOUT OPTIONS THAT WILL BE PRESENTED TO THE PRESIDENT IT WAS STILL UNCLEAR HOWEVER WHETHER THE PRESIDENT HAS ACTUALLY CHANGED HIS VIEW AND WOULD USE A VAT FOR HEALTH CARE OR WHETHER ONLY THE RHETORIC HAS CHANGED A MONTH AGO MR STEPHANOPOULOS SAID IT WILL NOT BE IN THAT PROPOSAL BUT THAT CHANGED YESTERDAY TO IT'S SOMETHING THAT IS BEING LOOKED AT AT SOME LEVEL IN THE TASK FORCE THE TAX WOULD BE LEVIED ON THE VALUE ADDED TO A PRODUCT AT EACH STAGE OF PRODUCTION WITH A CREDIT PROVIDED FOR THE TAX THAT WAS IMPOSED AT THE PRIOR STAGE AND WOULD BE ULTIMATELY PASSED ON TO THE CONSUMER DESPITE THE PUBLIC STATEMENTS THAT A VAT WASN'T UNDER CONSIDERATION IRA MAGAZINER THE HEALTHCARE COORDINATOR IN THE WHITE HOUSE HAS MENTIONED IT AND OTHER FINANCING OPTIONS IN CHATS WITH LEGISLATORS AND STAFFERS ON CAPITOL HILL BUT SOME ADMINISTRATION OFFICIALS PRIVATELY HAVE CONTINUED TO INSIST THAT THE PRESIDENT WON'T USE A VAT AMONG THOSE PUSHING A VAT ARE SOME LABOR UNIONS INCLUDING THE POWERFUL AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES WHOSE PRESIDENT GERALD MCENTEE IS A FRIEND AND EARLY SUPPORTER OF MR CLINTON'S THEY ARGUE THAT DEPLOYING A VAT WOULD BE FAR PREFERABLE TO EXPOSING WORKERS' HEALTH BENEFITS TO TAXES UNIONS HAVE WORKED TO PRESERVE JOB BENEFITS SOMETIMES AT THE EXPENSE OF SEEKING BIGGER RAISES LINING UP IN OPPOSITION TO A VAT TRACY MULLIN PRESIDENT OF THE NATIONAL RETAIL FEDERATION SAID THE DECLINE IN RETAILERS' STOCK PRICES YESTERDAY WAS LINKED TO THE ADMINISTRATION'S RENEWED INTEREST IN SUCH A TAX ADVOCATES CHARACTERIZE A VAT AS A MAGIC BULLET BUT IN REALITY IT'S LIKELY TO BACKFIRE ON THE ECONOMY AND THE CONSUMER MS MULLIN SAID A NEW TWIST IN THE ADMINISTRATION'S CONSIDERATIONS ACCORDING TO OFFICIALS IS THAT THE TASK FORCE MAY PROPOSE AS NATIONAL SALES TAX ALONG WITH OTHER OPTIONS ONE POSSIBLE WRINKLE WHICH MAY ENABLE THE PRESIDENT TO REVERSE HIMSELF AND ACCEPT IT IS THAT THE TAXES HE REJECTED EARLIER WERE AIMED AT PAYING A LARGE PORTION OF THE COST OF HEALTHCARE OVERHAUL WHICH COULD REQUIRE AS MUCH AS 90 BILLION OF NEW FEDERAL SPENDING ANNUALLY THE NEW VERSION IS ENVISIONED AS A SMALLER TAX THAT WOULD BE COMBINED WITH OTHER MEASURES STILL ADMINISTRATION OFFICIALS SAID IT IS DIFFICULT TO SERIOUSLY CONSIDER SUCH A TAX UNTIL THE HEALTHCARE PACKAGE HAS BEEN COMPLETED IDENTIFYING WHICH SERVICES NEED TO BE PAID FOR 9304150081 930415 GREYHOUND TRAFFIC IS OFF DALLAS GREYHOUND LINES INC SAID ITS PASSENGER TRAFFIC FELL 58 IN THE FIRST QUARTER TO ABOUT 126 BILLION REVENUE PASSENGER MILES FROM 134 BILLION A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER TRAVELING ONE MILE THE BUS COMPANY ALSO SAID IT FILLED 521 OF ITS AVAILABLE SEATS IN THE QUARTER DOWN FROM 526 A YEAR EARLIER 9304150080 930415 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN ETHNIC CHANNELS FILL A GAP AS CABLETELEVISION CAPACITY MUSHROOMS CABLE OPERATORS TURN TO NETWORKS THAT SPECIALIZE IN DIVERSITY THE INTERNATIONAL CHANNEL LOS ANGELES NOW IN FOUR MILLION HOMES PLANS A SMORGASBORD OF SINGLELANGUAGE PAY CHANNELS IN 1994 AND THE WORLD AFRICAN NETWORK ALSO IN LA AIMS DOCUMENTARIES MOVIES AND SPORTS SHOWS AT AFRICANAMERICANS NEW YORK'S TIME WARNER CABLE OFFERS PAY CHANNELS AT ABOUT 12 A MONTH EXTRA FOR JAPANESE KOREAN HINDU ARAB INDIAN AND CHINESE VIEWERS CABLE FIRMS EXPECTING TO OFFER EVEN MORE ETHNIC CHANNELS HIRE BILINGUAL AND TRILINGUAL PHONE OPERATORS TO MEET DEMAND PEOPLE WHO COULD NOT SPEAK ENGLISH WERE COMING INTO THE LOBBY POINTING AT A POSTER FOR A NEW ETHNIC CHANNEL SAYS A MANAGER AT CONTINENTAL CABLEVISION WHICH OPERATES IN CAMBRIDGE AND ARLINGTON MASS MOST OF THE NEW NETWORKS WHICH COME ON THE HEELS OF POPULAR HISPANIC NETWORKS TELEMUNDO AND UNIVISION CHARGE A FEE OVER BASIC SERVICE IN NEW ORLEANS ENTREPRENEURS LAUNCHED MUSIVISION THE FIRST CABLE NETWORK TO TARGET HISPANICS IN ENGLISH FUN FOOD AIMED AT KIDS ENTICES MANY ADULTS TOO MARKETERS SAY GROWNUPS ADMIT TO WANTING KID CUISINE FOR THEMSELVES JUST FOR THE FUN OF IT SAYS MONA DOYLE HEAD OF CONSUMERS NETWORK PHILADELPHIA THERE'S A GAPING MARKET FOR GROWNUP CHILDREN' TO DO SOMETHING SILLY WITH FOOD SHE ADDS LYNN DORNBLASER PUBLISHER OF NEW PRODUCT NEWS FIGURES THAT ADULTS MAY BUY KID ENTREES LIKE FRENCH TOAST STICKS OR CHICKEN NUGGETS FOR A KICK AND BECAUSE PORTIONS ARE CHEAPER AND SMALLER SAVING MONEY AND CALORIES NABISCO WHICH IS CURRENTLY ROLLING OUT LIFE SAVERS GUMMI SAVERS A CHEWY CANDY MEANT FOR ADULTS AND CHILDREN NOTES THAT GROWNUPS ACCOUNT FOR WELL OVER 50 OF ALL LIFE SAVER BRAND SALES AND KELLOGG'S SAYS ITS NEW RICE KRISPIES TREATS CEREAL WHICH SOLD OUT INITIAL SHIPMENTS IS TARGETED EQUALLY AT ADULTS AND KIDS MEANWHILE THE NATIONAL CONFECTIONERS' ASSOCIATION SAYS ABOUT 54 OF SURVEYED ADULTS SAY THEY ATE CANDY OR GUM WITHIN THE PREVIOUS 24 HOURS AFTER THE STORMS AND DROUGHT AND SNOW BUSINESS THRIVES FOR LANDSCAPERS CALIFORNIANS DIG INTO THE WETTEST SPRING IN AGES FLORIDIANS REPLANT IN THE WAKE OF HURRICANE ANDREW AND EASTERNERS REPAIR FLOODED LAWNS AND FROZEN GARDENS GALLOWAY FARM NURSERY IN KENDALL FLA IS THREE TIMES BUSIER THAN NORMAL DUE TO ANDREW SAYS ITS JOHN LOZANO IN ATLANTA DOROUGH LANDSCAPE PERFORMS MORE GRASSING JOBS THAT REPLACE WHOLE LAWNS DEMAND FOR DRAINAGE SYSTEMS RISES TOO IN THE EAST PROLONGED COLD DELAYS WORK BUT PENTUP DEMAND SIGNALS STRENGTH ATLANTIC NURSERY AND GARDEN IN FREEPORT NY EXPECTS LANDSCAPING JOBS TO RISE BY 20 JEANNE HINMAN OF RIVERSIDE NURSERY CANTON CONN SAYS SOME CUSTOMERS MAY GIVE UP VACATION DOLLARS TO WORK ON THEIR GARDENS BERTOTTI LANDSCAPING IN MARIN COUNTY CALIF REPORTS A SIXMONTH BACKLOG AS PEOPLE REPLACE DRY LAWNS BUT RECESSION TEMPERS SPENDING IN SOUTHERN CALIFORNIA POPULAR GARDEN FARE INCLUDES HERBS TOPIARY AND ORGANIC VEGETABLES OLYMPIAN VOLUNTEER EFFORTS HAVE BEEN UNDER WAY IN THE PEACH STATE EVER SINCE THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES RULED THAT ONLY PEOPLE WITH A COMMUNITY SERVICE TRACK RECORD WILL BE ALLOWED TO HELP OUT AT THE GAMES SO FAR 13000 GROUPS WITH 484000 PEOPLE HAVE APPLIED IT'S APRIL 15 A DAY WHEN TAXPAYERS' THOUGHTS MAY WANDER TO TAXFREE MUNICIPAL BONDS BUT MANY INVESTORS ADMIT THEY DON'T UNDERSTAND MUNIS NEARLY 70 OF THOSE POLLED SAY THEY DON'T KNOW ENOUGH TO MAKE AN INFORMED DECISION ACCORDING TO MUNICIPAL BOND INVESTORS ASSURANCE CORP POUCH POWER GROWS IN THE PACKAGING INDUSTRY INCREASINGLY FOOD PROCESSORS USE THE FLEXIBLE CONTAINERS AS ALTERNATIVES TO BIG METAL CANS SAYS PACKAGING MAGAZINE A NEW TWIST CONNECTED POUCHES FOR PEANUT BUTTER AND JELLY CALLED SQUEEZERS FROM THERMO PAC INC STONE MOUNTAIN GA THE COMBO POUCH MAKES A SINGLE PEANUT BUTTER AND JELLY SANDWICH FIRMS GET AROUND BIG ONETIME EARNINGS HITS TO SAVE EXECUTIVE BONUSES CHRYSLER CORP AND AMERICAN CYANAMID CO PROPOSE TO AMEND THEIR PROFITBASED INCENTIVE PLANS SO AS TO DEFUSE THE EARNINGS IMPACT OF A NEW ACCOUNTING RULE THE RULE MAKES COMPANIES BOOK LARGE RESERVES TO COVER THE PROJECTED COST OF TOTAL RETIREE HEALTH BENEFITS AS A RESULT MANY FIRMS WILL REPORT MUCHDIMINISHED NET INCOME THIS YEAR SO MANY COMPENSATION COMMITTEES WANT TO USE OPERATING EARNINGS NOT NET AFTER THE ACCOUNTING CHANGE TO CALCULATE TOP MANAGERS' BONUSES CONSULTANTS SAY CHRYSLER'S CHARGE FOR RETIREE HEALTH COSTS IS 47 BILLION THIS YEAR IT ASKS SHAREHOLDERS IF IT CAN SET THAT CHARGE ASIDE TO MAINTAIN BONUSES IT ALSO WOULD SHIELD BONUSES IN FUTURE YEARS FROM CONTINUING RETIREEBENEFIT CHARGES THE STRATEGY IRKS RALPH WHITWORTH OF UNITED SHAREHOLDERS ASSOCIATION MR WHITWORTH SAYS SUCH CHARGES SHOULD BE DEEMED A REGULAR BUSINESS COST NOT AN UNUSUAL EXPENSE TO BE IGNORED BY BOARD COMPENSATION COMMITTEES CONSULTANT WYATT CO SAYS IT'S SIMPLER TO EXCLUDE THE NEW ANNUAL CHARGES THAN TO ALTER BONUS FORMULAS BRIEFS THE AMERICAN HOTEL & MOTEL ASSOCIATION SAYS 56 OF HOTELS ALLOW PETS MARION MERRELL DOW OFFERS A POLLEN HOTLINE KEYED TO ZIP CODES THAT FORECASTS POLLEN TYPES AND LEVELS FOR 50 CITIES 9304150079 930415 MARKETING & MEDIA ADVERTISING SEARS PICKS FINALISTS SNUBS OGILVY IN BID FOR NEW APPAREL ACCOUNT BY KEVIN GOLDMAN SEARS ROEBUCK & CO UNVEILED THREE FINALISTS YESTERDAY FOR ITS 25 MILLION EFFORT TO MOLD A NEW IMAGE IN APPAREL AND THE BIGGEST SURPRISE WAS THE AD AGENCY THAT DIDN'T MAKE THE CUT WPP GROUP'S OGILVY & MATHER THE INCUMBENT OGILVY & MATHER WAS THOUGHT TO BE A FAVORITE TO HOLD ON TO THE APPAREL PORTION OF ITS SEARS BILLINGS IT OPENED ITS CHICAGO OFFICE 16 YEARS AGO JUST TO SERVICE THE SEARS ACCOUNT AND MANY OF THE AGENCY'S 200 EMPLOYEES WORK ON THE SEARS BUSINESS LAST YEAR THE OFFICE BILLED 486 MILLION WITH SEARS CONTRIBUTING MORE THAN 200 MILLION OF THAT SUM BUT INSTEAD OF STICKING WITH OGILVY SEARS HAS DECIDED TO CHOOSE AMONG WELLS RICH GREENE YOUNG & RUBICAM AND HAL RINEY & PARTNERS THE SLAP WAS ALL THE MORE STINGING BECAUSE IT WAS OGILVY & MATHER THAT RECOMMENDED THAT SEARS RUN A SEPARATE CAMPAIGN FOCUSED ON APPAREL IN THE FIRST PLACE WE BELIEVE IN THE EFFORT WE RECOMMENDED IT OGILVY CHAIRWOMAN CHARLOTTE BEERS SAID YESTERDAY OGILVY DOES RETAIN OTHER SEARS BUSINESS HOWEVER INCLUDING THE DIE HARD BATTERY BRAND CENTRAL STORES AUTOMOTIVE CENTERS CRAFTSMAN TOOLS AND THE RETAIL CHAIN STORES BUT THE NEW APPAREL LINE WHICH IS EXPECTED TO SPEND IN EXCESS OF 25 MILLION IS THE LATEST EFFORT FOR SEARS AND WILL UNDOUBTEDLY BE FAWNED OVER LIKE A NEWBORN BY THE PARENT COMPANY THEREFORE OGILVY'S HOLD ON THE OTHER SEARS BUSINESS COULD BE LOOSENED IF A NEW AGENCY PRODUCES IMPRESSIVE WORK THAT INCREASES APPAREL SALES MS BEERS DISMISSES THAT THREAT BY ASSERTING THAT OGILVY WILL BE THE SEASONED VETERAN IN THE TWOAGENCY RELATIONSHIP IN FACT OGILVY PRODUCES A STAGGERING 500 TELEVISION COMMERCIALS AND 800 RADIO ADS FOR THE GIANT RETAILER ANNUALLY WHEN THE REVIEW WAS ANNOUNCED IN JANUARY MATT HOWARD SEARS SENIOR VICE PRESIDENT OF MARKETING SAID WE HAVE NO OTHER PLANS TO REVIEW OTHER PIECES OF BUSINESSES WE ARE PLEASED WITH THE WORK OGILVY & MATHER IS DOING FOR US SEARS SAYS MS BEERS HAS ALWAYS BEEN FOCUSED ON A SECOND AGENCY THEY WERE INTRIGUED ABOUT AN ADDITIONAL SUPPLIER AND WE WERE BRIEFED ON THIS FROM THE BEGINNING SHE ADDS DIPLOMATICALLY THAT IT WAS CONSTRUCTIVE FOR OGILVY WITH WORLDWIDE BILLINGS OF OVER 5 BILLION TO PARTICIPATE IN THE REVIEW THE SEARCH IS EXPECTED TO BE COMPLETED LATE NEXT MONTH ANOTHER MAJOR AGENCY THAT DIDN'T MAKE THE FINAL ROUND WAS SAATCHI & SAATCHI ADVERTISING THE CALLS WERE MADE YESTERDAY BY JOHN H COSTELLO THE 45YEAROLD SENIOR EXECUTIVE VICE PRESIDENT GENERAL MANAGER OF SEARS' MARKETING DIVISION MR COSTELLO JOINED SEARS IN CHICAGO TWO WEEKS AGO MS BEERS DECLINED TO COMMENT ON SPECIFICS OF ITS SEARS APPAREL EFFORT I WOULD CHARACTERIZE OUR WORK AS TRUE TO THE SEARS BRAND SHE SAID OGILVY WON'T TRY A STEALTH MANEUVER TO SNATCH THE APPAREL ACCOUNT FROM A RIVAL AGENCY SAYS MS BEERS THE AGENCY SUCCESSFULLY WON BACK MUCH OF THE AMERICAN EXPRESS CO CREDIT CARD BUSINESS LAST YEAR THIS TIME HOWEVER OGILVY SAYS IT WILL LIE LOW WHEN IT COMES TO APPAREL MS BEERS DID HAVE A TELLING COMMENT THAT LEFT THE DOOR OPEN IF IT BENEFITS SEARS TO HAVE TWO AGENCIES AND WE HAVE TO SEE IF IT'S A BENEFIT THEN IT DOESN'T SERVICE SEARS FOR US TO SHOOT AT THE OTHER AGENCY OGILVY INITIALLY TRIED VALIANTLY TO HOLD ON TO THE APPAREL BUSINESS URGING SEARS BACK IN JANUARY TO FORGO CONDUCTING A REVIEW AT ALL THE REVIEW HAD AT LEAST ONE OTHER SURPRISE OMNICOM GROUP'S DDB NEEDHAM LAST MONTH UNEXPECTEDLY WITHDREW CITING A CAREFUL CONSIDERATION OF THE SUBSTANTIAL RESOURCES WHICH WOULD BE REQUIRED TO COMPETE EFFECTIVELY IN A STATEMENT YESTERDAY ARTHUR C MARTINEZ SEARS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT WHILE ALL THE AGENCIES MADE IMPRESSIVE PRESENTATIONS THE THREE FINALISTS OFFER THE GREATEST POTENTIAL FOR SEARS FOR WELLS RICH GREENE THE NEWS IS CERTAINLY WELCOME THE AGENCY HAS BEEN IN A COLD STREAK LATELY ON WINNING NEW BUSINESS AND INDEED HAS LOST SOME MAJOR ACCOUNTS INCLUDING SUNOCO AND ALKASELTZER PLUS COLD MEDICINE I'M VERY HAPPY SAYS KENNETH OLSHAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT WELLS RICH EXECUTIVES AT YOUNG & RUBICAM AND HAL RINEY COULDN'T BE REACHED BUT IT MAY BE THAT HAL RINEY COULD NOW GAIN THE INSIDE TRACK SEARS AFTER ALL LIKES TO EMBRACE AMERICANA WITH HEARTTUGGING MESSAGES JUST THE NICHE FOR HAL RINEY WHETHER FOR ALAMO RENTACAR OR THE SATURN AUTOMOBILE ACCOUNT USF&G INSURANCE A UNIT OF USF&G CORP HEADQUARTERED IN BALTIMORE SELECTS NEW YORKBASED MARGEOTES FERTITTA & WEISS TO BE THE AD AGENCY FOR ITS ESTIMATED 4 MILLION ACCOUNT LINCOLN ACTRESS KATE JACKSON NAMED SPOKESWOMAN FOR LINCOLNMERCURY DEALERS IN THE 14STATE GREAT LAKES REGION THE AD AGENCY YOUNG & RUBICAM SAYS MS JACKSON'S ROLE COULD EXPAND NATIONALLY HOWEVER LINCOLNMERCURY IS A DIVISION OF FORD MOTOR CO 9304150078 930415 ANOTHER HIGHFLYING IPO COMES BACK TO EARTH BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ONE OF THE HOTTEST NEW STOCK OFFERINGS OF 1992 LANDED IN THE WALL STREET DOGHOUSE YESTERDAY AS NETWORTH'S STOCK SANK 43 AFTER THE COMPUTER NETWORKING COMPANY SAID IT WOULD POST A QUARTERLY LOSS RATHER THAN AN EXPECTED PROFIT NETWORTH'S SHARES PLUNGED 8 TO FINISH AT 1075 NETWORTH IS THE LATEST EXAMPLE OF HOW CHASING HIGHLY TOUTED IPOS CAN QUICKLY PRODUCE HEAVY LOSSES ANALYSTS SAY LESS THAN FIVE MONTHS AGO NETWORTH ROCKETED TO 32 ON ITS FIRST TRADING DAY ON THE NASDAQ MARKET DOUBLE THE 16 OFFERING PRICE INVESTORS' PERCEPTIONS CAN CHANGE INSTANTLY AND SO CAN THE VALUE OF THE COMPANY IT HAPPENS OFTEN WITH NEW ISSUES BECAUSE OF THE MARKETING HYPE AND ARMIES OF SALESMEN ACCOMPANYING A TYPICAL STOCK OFFERING SAYS ROBERT NATALE A NEWISSUES ANALYST WITH STANDARD & POOR'S ONLY BIG INVESTORS ARE LIKELY TO GET STOCK ALLOCATED IN THE IPO ITSELF WITH SMALL INVESTORS FORCED TO BUY LATER AT HIGH PRICES NETWORTH LATE TUESDAY SAID IT ESTIMATED A LOSS OF 11 CENTS A SHARE FOR THE FISCALTHIRD QUARTER ENDED MARCH 31 COMPARED WITH EARNINGS OF EIGHT CENTS A SHARE IN THE PREVIOUS YEAR'S QUARTER IN A NEWS RELEASE JOHN MCHALE THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER BLAMED LIMITATIONS IN THE SUPPLY OF THIRDPARTY COMPONENTS INCREASED OPERATING EXPENSES ASSOCIATED WITH MARKETING AND RESEARCH AND DEVELOPMENT INVESTMENTS AND PROCESS DELAYS IN THE LAST WEEK OF MARCH TRANSLATION FEWER PRODUCTS THAN ANTICIPATED WERE SHIPPED BY THE END OF THE MONTH THE NEWS WAS THE HAMMER POUNDING ON THE NAIL INSERTED INTO NETWORTH'S STOCK PRICE LAST MONTH ON MARCH 17 THE STOCK TOPPLED 38 TO 20 WHEN THE COMPANY ANNOUNCED THAT THIRDQUARTER RESULTS WOULD BE AROUND THE BREAKEVEN LEVEL AT THAT TIME THE IRVING TEXAS COMPANY SAID A COMPUTER CHIP SHORTAGE WOULD SIGNIFICANTLY REDUCE EXPECTED EARNINGS FOR THE THIRD QUARTER THE CHIP IS USED FOR A NEW MODULE THAT PLUGS INTO A NETWORTH DEVICE THAT CENTRALIZES THE WIRING AND MANAGEMENT OF COMPUTER NETWORKS ONCE WE RECEIVED THE CHIP AND BROUGHT IT INTO THE MANUFACTURING PROCESS INCLUDING ASSEMBLY TESTS AND FINE TUNING WE REALIZED ON MARCH 31 THAT WE NEEDED TO DO SOME MORE RIGOROUS TESTING MR MCHALE SAID WALL STREET ANALYSTS HAVE SLASHED THEIR ESTIMATES ALMOST AS FAST AS NETWORTH'S STOCK HAS PLUMMETED JOHN POWERS AN ANALYST WITH NETWORTH'S LEAD UNDERWRITER ROBERTSON STEPHENS IN SAN FRANCISCO NOW ESTIMATES THE COMPANY WILL EARN 12 CENTS A SHARE FOR THE FISCAL YEAR ENDING JUNE 30 THAT'S ONESIXTH OF HIS ORIGINAL ESTIMATE OF 73 CENTS A SHARE AT THE TIME OF THE IPO HE ALSO DOWNGRADED HIS INVESTMENT RATING ON THE STOCK TO A HOLD/HOLD LEVEL FROM A HOLD/BUY LEVEL WHEN THE COMPANY HAD ITS ANNOUNCEMENT A MONTH AGO I CERTAINLY MADE EVERY EFFORT TO UNDERSTAND THE SITUATION AND I AM SURPRISED BY THESE EVENTS MR POWERS SAID PRODUCT TRANSITIONS ARE ALWAYS RISKY TIMES FOR TECHNOLOGY COMPANIES I NEED TO SEE MANAGEMENT EXECUTE SUCCESSFULLY BEFORE I MOVE THE RATING SOME MONEY MANAGERS DOUBT NETWORTH CAN MAKE UP ITS LOST GROUND IF TECHNOLOGY COMPANIES GET BEHIND THE BALL THEY USUALLY DON'T COME BACK SAYS LARRY BOWMAN HEAD OF FIDELITY'S EMERGING GROWTH FUND THIS IS NOT AN OPPORTUNITY TO BUY A HOT IPO AFTER IT'S BLOWN UP I AM NOT CONVINCED THAT THIS IS ONLY A SHORTTERM PROBLEM S&P'S MR NATALE SAYS IT'S ESPECIALLY HARD FOR SMALL COMPANIES TO WITHSTAND NEGATIVE NEWS OR IMPENDING COMPETITION THE BUSINESS RISKS ARE LARGE FOR A COMPANY WITH A SMALL PRODUCT LINE AND WITH REVENUE LESS THAN 100 MILLION HE SAYS A SMALL COMPANY MAY LACK SUFFICIENT RESOURCES TO FIX THE OPERATING PROBLEM AND HANDLE INVESTOR RELATIONS AT THE SAME TIME SAYS ROGER MCNAMEE OF INTEGRAL CAPITAL PARTNERS IN PALO ALTO CALIF MR MCNAMEE SAYS HE BOUGHT 500 SHARES IN THE 11 MILLIONSHARE NETWORTH INITIAL OFFERING AND QUICKLY SOLD THEM MATHSOFT IS ANOTHER RECENT IPO FALLEN FROM GLORY THE SOFTWARE COMPANY'S SHARES ARE AT 775 EACH DOWN 66 FROM A HIGH OF 23 MATHSOFT OFFERED SHARES FOR 13 ON THE NASDAQ MARKET AT THE BEGINNING OF FEBRUARY THROUGH LEAD UNDERWRITER ALEX BROWN & SONS THE STOCK TOOK A 33 HIT MONDAY WHEN AN ALEX BROWN ANALYST DOWNGRADED HIS RATING TO NEUTRAL FROM BUY THE ANALYST SAID THE COMPANY'S PRO FORMA EARNINGS OF EIGHT CENTS A SHARE FOR THE FISCALTHIRD QUARTER ENDED MARCH 31 FELL SHORT OF HIS ESTIMATE OF 12 CENTS OR 13 CENTS A SHARE EVERY COMPANY THAT GOES PUBLIC DREAMS OF BEING THE NEXT MICROSOFT AND THAT ONLY HAPPENS WITH A VERY SELECT FEW MR MCNAMEE SAYS ONE DAY IT'S A HIGHFLYING STOCK AND THENBOOM 9304150077 930415 UPJOHN CO'S COOPER IS HOSPITALIZED SMITH SERVES AS CHIEF EXECUTIVE OFFICER BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL KALAMAZOO MICH UPJOHN CO SAID THAT CHAIRMAN THEODORE COOPER WAS HOSPITALIZED IN CRITICAL BUT STABLE CONDITION AND THAT ANOTHER UPJOHN EXECUTIVE LEY S SMITH ASSUMED HIS RESPONSIBILITIES AS CHIEF EXECUTIVE OFFICER DR COOPER 64 YEARS OLD WAS DIAGNOSED IN JANUARY WITH A BONEMARROW TUMOR BUT UNTIL RECENTLY HE WAS ABLE TO CONTINUE WITH HIS DUTIES THE SUDDEN DETERIORATION OF HIS HEALTH NOW RAISES ANEW QUESTIONS OF SUCCESSION AT A TIME WHEN THE DRUG MAKER IS TRYING TO STRENGTHEN ITS FINANCIAL RESULTS UPJOHN IS EXPECTED TO ANNOUNCE THAT EARNINGS FOR THE FIRST QUARTER WILL BE BASICALLY FLAT WITH YEAREARLIER RESULTS OF 143 MILLION OR 80 CENTS A SHARE AN UPJOHN SPOKESMAN SAID IT'S UNCLEAR IF DR COOPER WILL BE ABLE TO RESUME HIS DUTIES IT ALL HAPPENED SUDDENLY THE SPOKESMAN SAID WE'RE HOPEFUL THAT DR COOPER WILL RETURN BUT IT'S TOO EARLY TO TELL MR COOPER HAS BEEN CHAIRMAN AND CEO SINCE 1987 AND RETAINS BOTH TITLES THE CEO DUTIES WERE GIVEN TO MR SMITH A 58YEAROLD UPJOHN VICE CHAIRMAN WHO ALSO WAS ELECTED PRESIDENT AND CHIEF OPERATING OFFICER YESTERDAY MR SMITH WILL CONTINUE TO OVERSEE UPJOHN'S WORLDWIDE PHARMACEUTICAL BUSINESS THE COMPANY'S DECISION TO GIVE THE CEO DUTIES TO MR SMITH AND NOT TO WILLIAM PARFET A GREATGRANDSON OF THE COMPANY'S PRINCIPAL FOUNDER AND A TOP UPJOHN EXECUTIVE HAS RAISED SOME EYEBROWS IN THE INDUSTRY MR PARFET 46 FORMERLY PRESIDENT WAS NAMED VICE CHAIRMAN YESTERDAY BUT WILL CONTINUE TO OVERSEE THE COMPANY'S ALLIED HEALTH BUSINESSES WORLDWIDE MANUFACTURING AND FINANCE MR PARFET ALONG WITH VICE CHAIRMEN JERRY R MITCHELL 51 AND MARK NOVITCH 60 WILL REPORT TO MR SMITH THE BOARD CHOSE THE BEST CANDIDATE BASED ON HIS LONG YEARS AND EXPERIENCE IN THE INDUSTRY THE UPJOHN SPOKESMAN SAID BUT MR SMITH ASSUMING THE CEO DUTIES DOESN'T SIGNAL ANYTHING ABOUT MANAGEMENT SUCCESSION MANAGEMENT SUCCESSION IS SOMETHING THE COMPANY HAS YET TO RESOLVE UPJOHN FURTHER DELAYED THAT PROCESS LAST YEAR WHEN IT ASKED DR COOPER TO CONTINUE IN HIS JOB INDEFINITELY BEYOND THE RETIREMENT AGE OF 65 DR COOPER HAS TRIED TO HONOR THAT COMMITMENT DESPITE HIS ILLNESS INITIALLY THE PROGNOSIS FOR DR COOPER'S RECOVERY WAS CONSIDERED QUITE GOOD WHEN UPJOHN FIRST ANNOUNCED IN JANUARY THAT DR COOPER HAD BEEN DIAGNOSED WITH PLASMA CELL MYELOMA DR COOPER THE FIRST CHAIRMAN WHO ISN'T A MEMBER OF THE FOUNDING FAMILY DIDN'T RELINQUISH HIS POSITIONS AFTER THE ANNOUNCEMENT BUT THE BOARD DECIDED YESTERDAY THAT DR COOPER COULD NO LONGER CARRY OUT HIS RESPONSIBILITIES HE'S NOW IN THE INTENSIVE CARE UNIT AT THE UNIVERSITY OF VIRGINIA MEDICAL CENTER WE ARE ALL VERY CONCERNED FOR DR COOPER AND HIS FAMILY AND DISAPPOINTED IN THIS SETBACK IN WHAT APPEARED TO BE A GOOD RECOVERY SAID WILLIAM D MULHOLLAND A SENIOR MEMBER OF THE BOARD'S EXECUTIVE COMMITTEE DR COOPER'S SETBACK COMES AT A TIME WHEN UPJOHN IS BATTLING ITS OWN SET OF PROBLEMS UPJOHN WILL LOSE PATENT PROTECTION ON THREE KEY PRODUCTS BY THE END OF 1993 AND UPJOHN CURRENTLY DOESN'T HAVE ANYTHING COMING OUT ITS PIPELINE TO REPLACE THOSE PRODUCTS' EARNINGS ADDING TO UPJOHN'S TROUBLES IS AN ACCELERATING SLIDE IN SALES OF ITS HALCION SLEEPING PILL ITS PATENT IS SET TO EXPIRE THIS YEAR BUT HALCION HAS BEEN BATTERED BY CRITICISM THAT SOME USERS EXPERIENCE A HIGHER INCIDENCE OF NEGATIVE SIDE EFFECTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY UPJOHN SHARES ROSE 25 CENTS TO 2825 9304150076 930415 LEISURE & ARTS BOOKSHELF AN ELUSIVE GENIUS BY RICHARD LOCKE HE BEGAN AT 20 IN 1926 AS AN ETON AND OXFORD BOY WHOSE ASTOUNDINGLY PRECOCIOUS FIRST NOVEL IMAGINED BLINDNESS AS A GIFTAN ESCAPE FROM UPPERCLASS CLICHES CONVENTIONS AND CONSTRAINTS INTO THE FREE INTENSE LIFE OF A WRITER HE ENDED AT 68 IN 1973 AFTER NINE MORE BOOKS AND THE HIGHEST PRAISE OF SUCH AS WH AUDEN REBECCA WEST VS PRITCHETT AND EUDORA WELTY AS A DEAF ALCOHOLIC RECLUSE WHO HAD ALMOST NEVER LEFT HIS LONDON HOUSE IN 13 YEARS AND HADN'T PUBLISHED A BOOK IN MORE THAN 20 AT THE HEIGHT OF HIS CELEBRITY HE HAD FAMOUSLY TURNED HIS BACK ON PHOTOGRAPHERS ONE SHOULD NEVER BE KNOWN BY SIGHT BUT THEN PERMITTED THEM TO SNAP AWAY I'D KNOW THAT BACK ANYWHERE SAID A FRIEND PROBABLY EVELYN WAUGH WHO ALSO DECLARED BLUNTLY HENRY IS A GENIUS I AM NOT A GENIUS HENRY WAS HENRY VINCENT YORKE WHO PUBLISHED UNDER THE NAME HENRY GREEN AND WHOSE WORKS ARE NOW HAPPILY BEING REVIVED VIKING PENGUIN HAS REISSUED SIX NOVELS IN TWO OMNIBUS PAPERBACKS LOVING LIVING AND PARTY GOING FOR 1495 AND NOTHING DOTING AND BLINDNESS FOR THE SAME IN MAY NEW DIRECTIONS WILL PUBLISH HIS AUTOBIOGRAPHY PACK MY BAG A SELFPORTRAIT 242 PAGES 1895 FOR THE FIRST TIME IN AMERICA AND VIKING AGAIN HAS JUST PUBLISHED SURVIVING THE UNCOLLECTED WRITINGS OF HENRY GREEN 302 PAGES 24 EDITED BY HIS GRANDSON MATTHEW YORKE WITH A MEMOIR BY HIS SON SEBASTIAN AND AN ELOQUENT INTRODUCTION BY JOHN UPDIKE WHO HAS CHAMPIONED GREEN FOR YEARS TO READ HIM IS TO BE PROFOUNDLY CHALLENGED AND EMPOWERED DRAWN INTO A COMPLEX INTERDEPENDENT COMMUNITY OF FEELING SPEECH AND THOUGHT IT'S LIKE DANCING WITH NIJINSKY OR ASTAIRE WHO LEADS YOU FAULTLESSLY ON WITH SUBLIME IDIOSYNCRATIC APLOMB HIS WRITING UTTERLY ELUDES THE USUAL SUSPECT CATEGORIES ONE ENDS UP SOUNDING LIKE POLONIUS FOR GREEN'S BOOKS ARE LYRICAL MYTHIC MODERNISTIC SATIRIC SOCIALREALISTIC PSYCHOLOGICALLY DENSE AND ENVIRONMENTALLY KEEN GORGEOUS ROOMS AND LANDSCAPES OR TO USE VS PRITCHETT'S WORD LUMINOUS THE CENTRAL ANXIOUS FLICKERING IMPULSE IN HIS LIFE AND WORK WAS TO ESCAPE THE DEADLY FAMILIAR ORDER OF THINGS AND TO DISCOVER OR CREATE AN AUTHENTIC RADICALLY COUNTERSTEREOTYPICAL COMMUNITY OF HUMAN LANGUAGE THOUGHT AND FEELING LIKE WITTGENSTEIN'S PHILOSOPHY HIS COMPLEX LITERARY STYLE WAS DESIGNED TO SHOW THE FLY THE WAY OUT OF THE FLYBOTTLE ESCAPE DEMANDS NEW KINDS OF ATTENTION THE FAMILIAR MUST BE CHANGED INTO SOMETHING RICH AND STRANGE PROSE IS A GATHERING WEB OF INSINUATIONS GREEN WROTE A LONG INTIMACY BETWEEN STRANGERS IT SHOULD SLOWLY APPEAL TO FEELINGS UNEXPRESSED IT SHOULD IN THE END DRAW TEARS OUT OF THE STONE HENRY GREEN OR RATHER YORKE WAS AN ARISTOCRAT A '30S PLAYBOY AND A 30YEARSOFSERVICE BUSINESSMAN AFTER ETON AND OXFORD HE WORKED FOR TWO YEARS AS A LABORER IN HIS FAMILY'S IRON FOUNDRY AND OUT OF THIS CAME HIS SECOND NOVEL LIVING 1929 WHICH DAVID LODGE RECENTLY DESCRIBED AS ARGUABLY THE BEST BRITISH NOVEL ABOUT THE INDUSTRIAL WORKING CLASS PUBLISHED IN THE 20TH CENTURY BUT THIS POLITICALLY UNCOMMITTED ARISTOCRAT SOON RETURNED TO THE FAMILY FOLD WITH A FASHIONABLE MARRIAGE FATHERHOOD AND A DECADE OF HIGH LIFE GADDING ABOUT AS A BRIGHT YOUNG THING AFTER SEVEN YEARS OF WORK HE PRODUCED AN EXQUISITE SELFSATIRE OF THE LONDON RICH PARTY GOING 1939 THEN AT 33 HE ENLISTED IN THE AUXILIARY FIRE SERVICE AND SERVED AS A FIREMAN RIGHT THROUGH THE BLITZ TO 1945 THIS SECOND EXPERIENCE OF AN AGGRESSIVELY DEMOCRATIC SUBSOCIETY THE FIREHOUSE NOW NOT THE FACTORY AGAIN PROPELLED HIM INTO LITERARY ACTION HE QUICKLY WROTE HIS CLEVERLY PASSIVEAGGRESSIVE AUTOBIOGRAPHY PACK MY BAG 1940 AND THEN FOUR NOVELS CAUGHT 1943 LOVING 1945 BACK 1946 AND CONCLUDING 1948 THROUGH IT ALL HE KEPT MANAGING THE FAMILY BUSINESS POORLY INDECISIVELY HE BECAME A LITERARY CELEBRITY OF SORTS WHICH HE BOTH DESPISED AND CRAVED DESPITE HIS BEST EFFORTS TO SABOTAGE HIS CAREER HIS GREAT NOVEL LOVING ABOUT ENGLISH SERVANTS AND MASTERS IN AN IRISH CASTLE IN 1941 IT'S HIS MARRIAGE OF FIGARO APPEARED IN AMERICA IN 1949 AND BRIEFLY MADE THE BESTSELLER LIST HIS TWO LAST NOVELS RETURNED TO LONDON HIGH SOCIETY NOTHING 1950 DESPITE ITS OMINOUS AMBIGUOUS TITLE APPROACHED THE VALEDICTORY COMIC PERFECTION OF COSI FAN TUTTE BUT TWO YEARS LATER THE THINNER MORE BRITTLE DOTING AS IN HE DOTES ON HER AND HE'S IN HIS DOTAGE HAD AN ALMOST CYNICAL SHEEN THEN AT 47 AS A NOVELIST HE STOPPED DEAD BUT THIS IS MUCH TOO GRIM FOR GREEN'S WORKS LIVE WITH EVERBRIGHTENING INTENSITY THEIR EXTREME SOCIAL AND AESTHETIC VARIETY THEIR TENDERNESS PRECISION COMEDY MORAL BRIO AND UTTERLY DISORIENTING UNFLAPPABLE ORIGINALITY OF STRUCTURE AND STYLE INDUCE A KIND OF VERTIGINOUS DELIGHT THE 39 PIECES IN SURVIVING THE UNCOLLECTED WRITINGS OF HENRY GREEN RANGE FROM SCHOOLBOY SKETCHES AND EXPERIMENTS SOME HILARIOUS LIKE HAROLD PINTER DUELING WITH DONALD BARTHELME THROUGH STORIES ABANDONED BITS OF NOVELS A PLAY VARIOUS ARTICLES REVIEWS INTERVIEWS AND BBC BROADCASTS TO THE EXTRAORDINARY 20PAGE BEGINNING OF GREEN'S LAST PROJECTED WORK THE MEMOIR LONDON AND FIRE 19391945 IT'S A FINE GENEROUS PROVOCATIVE COLLECTION THOUGH NEOPHYTES SHOULD START WITH LOVING WHICH IS BEYOND PRAISE 9304150075 930415 LEISURE & ARTS FILM TWO ODD DUCKS WHO FIND EACH OTHER BY JULIE SALAMON I FIRST NOTICED RACHEL PORTMAN'S MUSIC IN THE BACKGROUND OF ANTONIA AND JANE A CHARMING LITTLE PICTURE BY BEEBAN KIDRON SOMETHING ABOUT MS PORTMAN'S MUSIC A KIND OF JAUNTY SPIRIT ASSERTED ITSELF WITHOUT OVERSHADOWING THE MOVIE IT WAS MEANT TO ENHANCE JUST WHAT MOVIE MUSIC IS SUPPOSED TO DO IN FACT BUT OFTEN DOESN'T THEN WATCHING AN ECCENTRIC COMEDY CALLED USED PEOPLE A FEW MONTHS AGO I FELT THE MUSIC WORKING ON ME AGAIN AND AGAIN THE CREDITS REPORTED THAT THE MUSIC WAS THE WORK OF THE BRITISH COMPOSER SO I WASN'T SURPRISED TO FIND HOW RECEPTIVE I WAS TO THE WHIMSICALITY OF BENNY & JOON I'D BEEN PUT IN THE MOOD BY ANOTHER PORTMAN SCORE WITH ITS PARTICULAR MIX OF MISCHIEF ROMANCE AND YEARNING SOME PEOPLE MAY BE PUT OFF BY THE VERY IDEA OF BENNY & JOON THE STORY OF TWO ODD DUCKS ONE OF THEM A MENTALLY ILL YOUNG WOMAN WHO MEET AND FIND REAL COMPANIONSHIP FOR THE FIRST TIME SHE PAINTS HE'S A MOVIE FANATIC DEVOTED TO PERFECTING A PHYSICAL COMEDY MODELED ON BUSTER KEATON IT'S THE KIND OF STORY YOUNG PEOPLE FIND APPEALING THE NOTION THAT ARTISTIC SOULS ARE FREAKS BY DEFINITION UNTIL THEY FIND ONE ANOTHER GROWNUPS WHO HAVE EITHER OUTGROWN THEIR UGLYDUCKLING PHASE OR SETTLED INTO IT FOREVER COULD FIND THE PREMISE CLOYING BUT SCREENWRITER BARRY BERMAN AND DIRECTOR JEREMIAH CHECHIK TELL THE TALE WITHOUT CONDESCENSION OR TOO MUCH CUTESINESS MR BERMAN WORKED AS A CLOWN FOR RINGLING BROS & BARNUM AND BAILEY CIRCUS FOR A YEAR WHICH MAY EXPLAIN HIS BELIEF THAT HUMAN RELATIONS OPERATE BY MAGIC INDEED THE MOVIE'S TITLE SENDS A VIVID SIGNAL OF THE MOVIE'S UNCONVENTIONAL IMPULSE BENNY AND JOON ARE A BROTHER AND SISTER NOT THE PICTURE'S ROMANTIC INTEREST MARY STUART MASTERSON PLAYS JOON A YOUNG WOMAN WHO CAN BE COOLLY ARTICULATE SANE FOR LONG STRETCHES THEN LAPSE INTO A DISORIENTATION THAT'S BEEN DIAGNOSED AS SOME OFFICIAL FORM OF MENTAL DISTURBANCE OTHERWISE SHE JUST SEEMS TO BE AN ECCENTRIC ARTIST SHE PRODUCES WILD FRANTIC PAINTINGS WITH ODD EATING HABITS BREAKFAST CEREAL AND YOGURT IN A BLENDER AIDAN QUINN IS JOON'S BROTHER BENNY WHOSE FRIENDS SEE HIM AS A LONGSUFFERING SAINT THEY KEEP TELLING HIM HE'S GIVING HIS LIFE UP FOR JOON THERE'S PRESSURE ON HIM FROM HER DOCTOR TOO TO PACK HER OFF TO AN INSTITUTION IT IS BENNY'S PERSPECTIVE AND MR QUINN'S PERFORMANCE THAT GIVE THE PICTURE SURPRISING WEIGHT AND DIMENSION IT BECOMES CLEAR THAT GUILT ALONE ISN'T THE MOTIVATING FORCE BEHIND BENNY'S DEVOTION TO JOON THEY ARE TIED BY SOME DEEPER UNDERSTANDING FORGED BY HISTORY AND SADNESS THEIR PARENTS DIED ABRUPTLY WHEN THE CHILDREN WERE YOUNG ON THE ONE HAND BENNY KNOWS THAT JOON IS A PAIN IN THE NECK WHO'S TRAPPED HIM KEPT HIM FROM ANY OTHER DEEP RELATIONSHIP BUT IT ISN'T ALL MISERY FAR FROM IT BENNY AND JOON HAVE THE COMPLICATIONS OF TWO RELATIONSHIPS AT ONCE THEY ARE BROTHER AND SISTER BUT ALSO PARENT AND CHILD IT ISN'T HARD TO UNDERSTAND THIS SINCE MR QUINN AND MS MASTERSON PLAY THE PARTS WITH GREAT CLARITY AND COMPASSION AND HUMOR THIS ISN'T A SOBER FAMILY MELODRAMA HOWEVER NOT BY A LONG SHOT THERE'S A SPRIGHTLINESS TO ITS LOOK AND FEEL RIGHT FROM THE START THAT CARRIES FROM THE MAIN PLAYERS THROUGH THE SIDEKICKS AND THE SIDEKICKS THE GUYS IN BENNY'S POKER GROUP PROVIDE NICE CHARACTER BITS THEY COULD BE CALLED THE WRY BUNCH DAN HEDAYA JOE GRIFASI AND OLIVER PLATT THEY EASILY ACCEPT JOON BECAUSE THEY ARE A LITTLE ECCENTRIC THEMSELVES PLAYING FOR YARDSALE STAKES CABLE WIRE OLD RECORDS SALAD SPINNERS APPROPRIATELY ENOUGH THE POKER GROUP BRINGS IN THE MOVIE'S WILD CARD HE'S SAM AN OUTOFTOWN COUSIN WHO'S DROPPED IN FOR AN INDEFINITE STAY WITH ONE OF BENNY'S POKER PARTNERS THE COUSIN WANTS TO GET RID OF SAM AND UNLOADS HIM ON BENNY AND JOON AS THE BOOBY PRIZE FOR A LOSING CARD HAND SAM IS JOON'S ODDDUCK SOUL MATE HE ISN'T CERTIFIABLY CRAZY LIKE HER HE'S MERELY STRANGE WALKS AROUND DRESSED LIKE A REFUGEE FROM A SILENT MOVIE AND DOES MOST OF HIS CONVERSING THROUGH MAGIC TRICKS THE FILM MAKERS ESTABLISH THEIR HOMAGE TO KEATON THE GREAT SILENT FILM DIRECTOR AND STAR RIGHT FROM THE BEGINNING YOU CAN SEE SAM RIDING ON THE BACK OF A TRAIN READING A BOOK ABOUT KEATON SAM IS A MOVIE FREAK ALL HIS REFERENCES COME FROM MOVIES AT FIRST YOU WONDER HOW JOHNNY DEPP WHO PLAYS SAM WILL PULL OFF THIS OBVIOUS HOMAGE TO KEATON ESPECIALLY WHEN HE STARTS DOING PHYSICALCOMEDY ROUTINES NO ONE IS LIKELY TO MATCH KEATON'S GENIUS AS A VIRTUOSO OF PHYSICAL COMEDY A PAGANINI OF TAKES AND DOUBLE TAKES MR DEPP WISELY EXPLOITS HIS OWN SWEET SADNESS WHICH WAS POIGNANTLY DISPLAYED IN EDWARD SCISSORHANDS WITHOUT TRYING TO BE A KEATON CLONE HE MAKES US UNDERSTAND A CHARACTER SO ENTRANCED BY KEATON HE CAN ONLY EXPRESS HIMSELF AS KEATON DID HE FINDS HIS OWN MAGICAL MOVEMENTS VIDEO TIP ANY EXCUSE IS GOOD ENOUGH TO WATCH BUSTER KEATON THERE'S ALWAYS SOMETHING TO WATCH IN ANY OF HIS FILMS BUT AMONG THE BEST ARE STEAMBOAT BILL JR AND THE NAVIGATOR 9304150074 930415 TECHNOLOGY & HEALTH MICROSOFT NET JUMPED 36 FOR 3RD QUARTER PACE OF PROFIT GROWTH SLOWS BUT ANALYSTS REMAIN OPTIMISTIC ON FUTURE BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL REDMOND WASH MICROSOFT CORP SAID PROFIT JUMPED 36 FOR THE FISCAL THIRD QUARTER AS COMPUTER USERS CONTINUE TO EMBRACE ITS WINDOWS SOFTWARE NET INCOME WAS 243 MILLION OR 80 CENTS A SHARE FOR THE PERIOD ENDED MARCH 31 COMPARED WITH 179 MILLION OR 60 CENTS A SHARE A YEAR EARLIER REVENUE SURGED 41 TO 958 MILLION FROM 681 MILLION THE RESULTS SLIGHTLY EXCEEDED ANALYSTS' EXPECTATIONS FOR A QUARTERLY PROFIT OF 78 CENTS A SHARE MICROSOFT SAID IT HAS SOLD 25 MILLION COPIES OF WINDOWS AND 60 OF ALL NEW PERSONAL COMPUTERS ARE CURRENTLY BEING EQUIPPED WITH THE OPERATING SYSTEM WHICH WAS INTRODUCED NEARLY TWO YEARS AGO FURTHER THE COMPANY SOLD TWO MILLION COPIES OF THE LATEST UPGRADE OF ITS ORIGINAL OPERATING SYSTEM MSDOS THEY'RE OFF TO A VERY GOOD START WITH IT SAID RICK SHERLUND OF GOLDMAN SACHS THOSE SALES GENERATED 100 MILLION IN REVENUE BUT ONLY 20 OF THEM WOULD HAVE OCCURRED BY THE END OF THE THIRD QUARTER MR SHERLUND ESTIMATES THE TORRID PACE OF PROFIT GROWTH AT THE COMPANY HAS SLACKENED SOMEWHAT BUT THAT DOESN'T DISCOURAGE SOME ANALYSTS PROFIT SHOT UP 38 FOR THE NINEMONTH PERIOD TO 688 MILLION OR 228 A SHARE COMPARED WITH A 54 RISE IN THE YEAREARLIER PERIOD THE LAW OF LARGE NUMBERS SUGGESTS THAT MICROSOFT IS SLOWING DOWN BUT GIVEN ITS REVENUE BASE THESE ARE STILL VERY IMPRESSIVE NUMBERS SAID DAVID READERMAN AN ANALYST WITH LEHMAN BROTHERS MR SHERLUND NOTED THAT THE COMPANY HAS FAR SURPASSED ITS OWN PREDICTIONS OF PERFORMANCE LAST YEAR MICROSOFT OFFICIALS SAID THE CURRENT FISCAL YEAR'S PROFIT GROWTH WOULD BE 20 TO 25 BUT THAT WILL LIKELY BE CLOSE TO THE MARK FOR THE CURRENT QUARTER BECAUSE THERE WON'T BE NEW PRODUCT INTRODUCTIONS AS THERE WERE IN THE YEAREARLIER PERIOD HE SAID PROFIT GROWTH SHOULD PICK UP AGAIN IN THE FALL WHEN NEW VERSIONS OF MICROSOFT WORDPROCESSING AND SPREADSHEET SOFTWARE APPLICATIONS ARE SHIPPED MR SHERLUND SAID AND NEXT SPRING WINDOWS NT A MORE POWERFUL OPERATING SYSTEM WILL ALREADY HAVE BEEN AVAILABLE FOR A YEAR AND THE COMPANY WILL BEGIN SELLING AN UPGRADED PACKAGE OF WINDOWS AND DOS KNOWN AS CHICAGO THAT SHOULD ALONE GENERATE 1 BILLION IN REVENUE HE SAID IN A CONFERENCE CALL WITH ANALYSTS LATE TUESDAY COMPANY OFFICIALS INDICATED THAT REVENUE SHOULD INCREASE 25 TO 35 IN FISCAL 1994 BUT THEY DIDN'T ADDRESS PROFIT LEVELS THEY ALSO NOTED THAT CURRENCY TRANSLATIONS REDUCED REVENUE IN THE JUSTENDED QUARTER BY 5 THE RESULTS WERE RELEASED AFTER THE CLOSE OF TRADING YESTERDAY THE COMPANY'S STOCK CLOSED AT 89 UP 125 CENTS IN OVERTHECOUNTER TRADING 9304150073 930415 SECURITIES EXECUTIVES HEAR TALK OF DOOM AMID PROFIT BOOM GOLDMAN'S CHAIRMAN FRIEDMAN OFFERS TOUGH STEPS TO KEEP WORKERS AND COSTS IN LINE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMID WALL STREET'S PROFIT BOOM THE CHAIRMAN OF GOLDMAN SACHS & CO PREDICTS THE SECURITIES INDUSTRY IS IN FOR A BRUTALLY HARSH 1990S MAKING A RARE PUBLIC APPEARANCE AT A CONFERENCE OF THE SECURITIES INDUSTRY ASSOCIATION GOLDMAN CHAIRMAN STEPHEN FRIEDMAN HAD SOME HARSHSOUNDING ADVICE FOR HIS FELLOW BROKERAGE EXECUTIVES LAY OFF UNPRODUCTIVE EMPLOYEES THEN GIVE EVERYONE ELSE LESS SPACE TO WORK LOOK OVER THEIR SHOULDERS CONSTANTLY AND DON'T PAY THEM A PENNY MORE THAN THEY DESERVE REGARDLESS OF THE FIRM'S SUCCESS THROUGHOUT AMERICAN BUSINESS AND GOLDMAN SACHS WAS NO EXCEPTION IN MANY PARTS OF THE 1980S WE FOUND IN PARTS OF OUR BUSINESS A CERTAIN COMPLACENCY HE SAID BUT THERE IS ABSOLUTELY NO ROOM FOR THAT IF A BROKERAGE FIRM WANTS TO COMPETE IN THE '90S HE SAID THIS IS HARDLY THE KIND OF TALK YOU'D EXPECT AT A TIME WHEN WALL STREET BROKERAGE FIRMS ARE MAKING MONEY HAND OVER FIST PROFITS ARE BOOMING ON TUESDAY INDUSTRY LEADER MERRILL LYNCH & CO POSTED RECORD FIRSTQUARTER NET INCOME OF 3424 MILLION BUT DESPITE THE MILLIONS OF DOLLARS MADE EACH YEAR BY GOLDMAN AND PARTNERS LIKE THE 54YEAROLD MR FRIEDMAN THE CLOSELY HELD FIRM LOVES TO PLAY THE ROLE OF DR DOOM WHILE OTHERS ARE POPPING CHAMPAGNE CORKS IT WAS A FAVORITE MANAGEMENT TECHNIQUE OF MR FRIEDMAN'S FORMER COCHAIRMAN ROBERT RUBIN WHO LEFT THE FIRM TO WORK FOR PRESIDENT CLINTON JUST HOW FAR SHOULD A BROKERAGE FIRM GO TO KEEP ITS PEOPLE AND COSTS IN LINE MR FRIEDMAN TOLD A STORY ABOUT THE FIRM'S DRIVE TO GET LEANER BY SQUEEZING EMPLOYEES INTO TIGHTER SPACES THE SINGLE BEST INVESTMENT WE EVER MADE HE SAID WAS WHEN SOME GENIUS IN OUR OPERATIONS AREA CAME UP WITH A BOLD NEW IDEA IF YOU HAD PEOPLE SIT A LITTLE BIT CLOSER TOGETHER YOU COULD SAVE A LOT OF SPACE SO GOLDMAN REMOVED THE EXTRA CHAIRS FROM EMPLOYEES' CUBICLES THAT MANY EMPLOYEES USED TO HOLD THEIR RAINCOATS AND FOLDERS THE PROFIT FROM REMOVING THE CHAIRS HE SAID WAS HIGHER THAN ANY LEVERAGED BUYOUT IT WAS INCREDIBLE SUCH REVELATIONS SHOW WHY BROKERAGE FIRMS SHOULD PUT MORE OF THEIR TALENTED PEOPLE IN NONGLAMOROUS DEPARTMENTS LIKE OPERATIONS AND ADMINISTRATION HE SAID MR FRIEDMAN ALSO SUGGESTED BROKERAGE FIRMS SHOULD FIRE MORE PEOPLE ESPECIALLY INADEQUATE ONES HE SAID THAT IN EARLY 1985 GOLDMAN HAD 7500 EMPLOYEES A YEAR LATER AFTER IT HAD SLASHED ITS PAYROLL 17 TO 6200 PEOPLE WE DISCOVERED WE WERE IMMENSELY MORE EFFICIENT CULTURALLY STRONGER AND IT DID WONDERS FOR THE BOTTOM LINE AND EMPLOYEES WHO REMAIN BEHIND NEED TO BE PAID ONLY WHAT THEY ARE WORTH HE STRESSED GOLDMAN USED TO TIE THE PAY OF INVESTMENT BANKERS AND OTHER HIGHPRICED EMPLOYEES ASIDE FROM PARTNERS TO THE FIRM'S OVERALL PERFORMANCE THUS IF THE FIRM HAD A GOOD YEAR EVERYONE WOULD GET A BIGGER BONUS BUT NOW EVERYONE'S PAY IS SUBJECTIVE MR FRIEDMAN SAID IF ALL THIS SOUNDS LIKE A HIGHPRESSURE STIFLING ATMOSPHERE IN WHICH TO WORK WELL SOME CRITICS HAVE SAID GOLDMAN CAN BE THAT WAY BUT MR FRIEDMAN SAID IT'S IMPORTANT THAT WALL STREET FIRMS ENCOURAGE CREATIVITY AMONG EMPLOYEES TOO HE SAID THAT FIRMS NEED TO LET THEIR INTELLECTUAL RISK TAKERS KNOW THAT IF THEY FAIL IN A NEW VENTURE THEIR CAREERS WON'T BE PUT IN SHAMBLES AT LEAST THE FIRST TIME 9304150072 930415 INTERNATIONAL UNION AT TELMEX AUTHORIZES STRIKE OVER PAY DISPUTE BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE EXECUTIVE COMMITTEE OF THE POWERFUL UNION REPRESENTING WORKERS AT TELEFONOS DE MEXICO SA VOTED TO STRIKE IF A SALARY DISPUTE WITH THE TELEPHONE MONOPOLY ISN'T SETTLED BUT ANALYSTS AND UNION OFFICIALS ARE OPTIMISTIC THAT A STRIKE WHICH COULD CRIPPLE BUSINESS ACROSS MEXICO CAN BE AVERTED THE TELEPHONE WORKERS UNION HAS PARTICULARLY CLOSE TIES TO MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI WHO IS TRYING TO KEEP WAGE DEMANDS IN CHECK AND IS LIKELY TO STEP INTO THE TELMEX SITUATION IF A STRIKE IS THREATENED WHEN THE GOVERNMENT PRIVATIZED TELMEX TWO YEARS AGO THE UNION WON A SMALL STAKE IN THE COMPANY WHOSE PROFITS HAVE SINCE TRIPLED A STRIKE COULD LOWER THE VALUE OF THOSE HOLDINGS THE TELEPHONE WORKERS UNION WITH 50000 MEMBERS HAS ASKED FOR A 258 WAGE INCREASE WELL ABOVE THE 99 LIMIT SET IN PRESIDENT SALINAS'S INFLATIONFIGHTING PACT BETWEEN LABOR AND BUSINESS FRANCISCO HERNANDEZ JUAREZ THE HEAD OF THE UNION HAS SIGNED PRODUCTIVITY PACTS WITH TELMEX THAT INCLUDE INCENTIVE PAY FOR IMPROVED OUTPUT BY WORKERS MR HERNANDEZ AND ANALYSTS SAID THESE PACTS COULD ALSO REDUCE PRESSURE TO STRIKE AS THEY ARE ANOTHER WAY TO RAISE WORKER SALARIES CHANGES IN JOB CATEGORIES WHICH ALSO EFFECTIVELY RAISE WAGES COULD HAVE A SIMILAR EFFECT MR HERNANDEZ SAID A SPOKESMAN FOR TELMEX DECLINED TO COMMENT 9304150071 930415 TV NEWS PROGRAM ON GMNBC BATTLE IGNITES ANOTHER FIGHT DETROIT GENERAL MOTORS CORP ONCE AGAIN IS FIGHTING A TELEVISION NEWS SHOW THAT QUESTIONED THE SAFETY OF ITS PICKUP TRUCKS WITH SIDEMOUNTED GASOLINE TANKS THE SYNDICATED PROGRAM INSIDE EDITION BROADCAST YESTERDAY A STORY ABOUT THE CONTROVERSY OVER 47 MILLION 19731987 GM PICKUPS THE SHOW INCLUDED COMMENTS FROM JURORS IN PRODUCT LIABILITY SUITS AGAINST GM WHO CHAGE THE AUTO MAKER MISLED THEM BY RIGGING CRASH TESTS OF GM AND FORD PICKUPS TESTS THAT WERE USED IN COURT GM HAD MADE SIMILAR ALLEGATIONS ABOUT THE RIGGING OF A CRASH AGAINST NBC DATELINE THAT LED THE NEWS PROGRAM TO ADMIT IN AN UNUSUAL ONTHEAIR APOLOGY THAT IT HAD RIGGED CRASHES OF GM PICKUPS EXPLODING IN SIDEIMPACT COLLISIONS ONE ISSUE WAS WHETHER AS THE GENERAL ELECTRIC CO UNIT HAD CLAIMED GAS LEAKED OUT OF A HOLE IN THE PICKUP TRUCK'S TANK THERE'S NO HOLE NONE ZERO HARRY J PEARCE GM'S CHIEF COUNSEL SAID BUT YESTERDAY INSIDE EDITION SYNDICATED BY KING WORLD PRODUCTIONS INC DEFENDED NBC AND SHOWED A PICTURE OF WHAT IT SAID WAS A TINY STREAM OF GAS LEAKING FROM THE TANK OF A TEST TRUCK USED BY NBC GM IN A LETTER TO INSIDE EDITION CONCEDED THAT SEEPING DID OCCUR BUT CLAIMED THAT WAS DUE TO MICROSCOPIC POROSITY AND CORROSION PITTING GM STILL DENIED THERE WAS A HOLE IN THE TANK AND SAYS THAT THE TRUCKS ARE SAFE LAST WEEK FEDERAL SAFETY REGULATORS RECOMMENDED THAT GM RECALL THE TRUCKS AMONG THE PROBLEMS FEDERAL REGULATORS CITED FUEL TANKS THAT WERE LEAKING DUE TO CORROSION 9304150070 930415 LOCKHEED EXOFFICIALS INDICTED IN US PROBE OF MARIETTA GA PLANT ATLANTA TWO FORMER LOCKHEED CORP MANAGERS WERE INDICTED IN CONNECTION WITH A CONTINUING FEDERAL INVESTIGATION OF ALLEGED CORRUPT BUSINESS PRACTICES AT LOCKHEED'S MARIETTA GA AIRCRAFT PLANT THE US ATTORNEY'S OFFICE IN ATLANTA SAID THE SIXCOUNT INDICTMENT ALLEGES THAT VIRGIL M COPELAND AND ROBERT C SAWYER BOTH OF ATLANTA CONSPIRED WITH FORMER LOCKHEED EXECUTIVE JAMES HAROLD LUCAS TO SOLICIT AND ACCEPT KICKBACKS FROM SUBCONTRACTORS DOING BUSINESS WITH THE COMPANY BETWEEN 1977 AND 1990 A LOCKHEED SPOKESMAN SAID ONLY THAT THE COMPANY BASED IN CALABASAS CALIF COOPERATED IN THE INVESTIGATION MR COPELAND 59 YEARS OLD A FORMER MANAGER OF A FACILITIES DIVISION AT MARIETTA WAS CHARGED WITH PERJURY DURING HIS 1990 GRANDJURY APPEARANCE IN ATLANTA MR LUCAS PLEADED GUILTY IN DECEMBER 1991 TO RELATED CHARGES IN THE INVESTIGATION AS HAVE TWO SUBCONTRACTORS THE INDICTMENTS ALLEGE THAT MR COPELAND AND MR SAWYER WHO WAS A DIRECTOR OF FACILITIES AND SERVICES ACCEPTED MORE THAN 80000 IN CASH AND CHECKS FROM THE SUBCONTRACTORS WHO ARE SAID TO HAVE DISGUISED 70000 IN PAYMENTS AS A REAL ESTATE TRANSACTION MR SAWYER 75 DESCRIBED THE INVESTIGATION AS A WITCH HUNT GOING ON THREE YEARS AND SAID THAT IN THE FINAL ANALYSIS I'LL HAVE NO PROBLEM MR COPELAND CALLED THE INVESTIGATION A FARCE AND A TOTAL FABRICATION DESIGNED BY THE GOVERNMENT TO GET HIM TO INCRIMINATE HIGHER CORPORATE EXECUTIVES AT LOCKHEED HE SAID THE SUBCONTRACTORS NAMED IN THE INDICTMENT NEVER GAVE ME A DIME