THE PROGRAM OF PARTICLE PHYSICS TODAY CAN BE NEATLY PUT UNITY THROUGH BEAUTY UNITY IS THE GOAL AS THEORISTS STRIVE FOR A CONCISE MATHEMATICAL FORMALISM THAT WOULD MERGE THE FOUR FUNDAMENTAL FORCES HOLDING SWAY IN THE COSMOS GRAVITY ELECTROMAGNETISM THE STRONG FORCE WHICH BINDS THE ATOMIC NUCLEUS TOGETHER AND THE WEAK FORCE RESPONSIBLE FOR RADIOACTIVE DECAY BEAUTY IS THE MEANS WITH AESTHETIC JUDGMENT GUIDING PHYSICISTS WELL BEYOND THE AVAILABLE EXPERIMENTAL DATA TOWARD A FINAL THEORY THAT PROMISES TO EXPLAIN THE ORIGIN AS WELL AS THE STRUCTURE OF THE UNIVERSE NO PHYSICIST HAS BEEN MORE INVOLVED IN THE QUEST FOR UNITY THROUGH BEAUTY THAN STEVEN WEINBERG IN 1979 MR WEINBERG WAS AWARDED A NOBEL PRIZE FOR HIS DISCOVERY A DECADE EARLIER THAT ELECTROMAGNETISM AND THE WEAK FORCE WERE TWO RELATIVELY LOWENERGY ASPECTS OF THE MORE BASIC ELECTROWEAK FORCE NOW IN DREAMS OF A FINAL THEORY THE SEARCH FOR THE FUNDAMENTAL LAWS OF NATURE PANTHEON 335 PAGES 25 HE SPELLS OUT IN THE MOST LUCID AND COMPELLING TERMS WHAT IS AT STAKE IN THE ATTEMPT TO BRING THE STRONG NUCLEAR FORCE AND GRAVITY INTO AN ALLENCOMPASSING PACKAGE A THEORY OF EVERYTHING FOR MR WEINBERG REALITY AT ITS DEEPEST CONSISTS OF THE PLAY OF ELEMENTARY PARTICLES AS GOVERNED BY THE FUNDAMENTAL FORCES THE VIEW KNOWN AS REDUCTIONISM THAT ALL ARROWS OF SCIENTIFIC EXPLANATION CONVERGE AT THIS LEVEL IS ONE THAT HE VIGOROUSLY DEFENDS AGAINST A HOST OF SCIENTIFIC CRITICS IT IS A COLD AND IMPERSONAL VISION AND THE AUTHOR ADMITS AS MUCH IT WOULD BE WONDERFUL HE WRITES TO FIND IN THE LAWS OF NATURE A PLAN PREPARED BY A CONCERNED CREATOR IN WHICH HUMAN BEINGS PLAYED SOME SPECIAL ROLE I FIND SADNESS IN DOUBTING THAT WE WILL THE ONLY HUMAN VALUE WE ARE LIKELY TO FIND IN THE FINAL LAW IS BEAUTY WHY THERE SHOULD BE A RELIABLE CORRELATION BETWEEN TRUTH AND BEAUTY IN PHYSICS IS SOMETHING OF A MYSTERY YET IT IS UNDENIABLE THAT WHERE HARD EVIDENCE IS SCANT AMBIGUOUS OR NONEXISTENT PHYSICISTS WHO HAVE PLUMPED FOR ELEGANT THEORIES OVER UGLY ONES HAVE BEEN CONSISTENTLY VINDICATED MR WEINBERG IS ESPECIALLY ELOQUENT WHEN DISCUSSING WHAT MAKES A SCIENTIFIC THEORY BEAUTIFUL FOREMOST AMONG THE CRITERIA IS A SORT OF LOGICAL FIXITY AS WITH A RAPHAEL PAINTING ONE WOULDN'T WANT TO CHANGE A THING STILL AESTHETICS ALONE WILL NOT LEAD PARTICLE PHYSICS INTO THE PROMISED LAND THEORISTS SUCH AS MR WEINBERG REMAIN DEPENDENT ON AN ARMY OF EXPERIMENTALISTS AND THE MOST VISIBLE REPRESENTATIVE TODAY OF THIS HARDWORKING UNDERCLASS OF PHYSICS IS LEON LEDERMAN NOBEL LAUREATE AND CHIEF ARCHITECT OF THE MULTIBILLIONDOLLAR SUPERCONDUCTING SUPERCOLLIDER IT WAS MR LEDERMAN WHO ONCE DEFINED THE OBJECT OF PHYSICS AS EXPLAINING THE ENTIRE UNIVERSE IN A SINGLE SIMPLE FORMULA THAT YOU CAN WEAR ON YOUR TSHIRT BUT NEVER MIND SUCH EPIGRAMMATIC IDEALS HE HAS NO TROUBLE FILLING AN ENTIRE BOOK WITH A HISTORY OF PHYSICS ALL THE WAY FROM THE ANCIENT GREEK ATOMISTS TO SUPERSYMMETRIC STRING THEORY THE CURRENT FAVORITE FOR A THEORY OF EVERYTHING IN THE GOD PARTICLE IF THE UNIVERSE IS THE ANSWER WHAT IS THE QUESTION HOUGHTON MIFFLIN 434 PAGES 2495 WRITTEN WITH DICK TERESI MR LEDERMAN GIVES A LIVELY ACCOUNT OF THE MIGHTIER AND MIGHTIER MACHINES THAT HAVE BEEN BUILT TO EXPLORE TINIER AND TINIER REALMS THE INTERIOR OF THE ATOM OF THE NUCLEUS OF THE PROTON ITSELF AND THE QUASISEXUAL EUPHORIA AMONG EXPERIMENTALISTS WHEN THEY SUCCEED IN CREATING NEW PARTICLES THE AUTHOR'S OWN COUP OF PRODUCING HOT AND COLD RUNNING NEUTRINO BEAMS WHICH GARNERED HIM AND TWO COLLEAGUES A NOBEL IN 1988 PAVED THE WAY FOR A COMPLETE UNDERSTANDING OF THE WEAK NUCLEAR FORCE A RELENTLESS GAGMAN MR LEDERMAN TREATS US TO A HOST OF JOKES INCLUDING THE BEST ONE I HAVE YET HEARD ABOUT RABBIS AND CLOUD CHAMBERS AND WRY ANECDOTES UPON BEING ASKED FOR INSTANCE TO MAKE A BRIEF VIDEO IN 1986 THAT WOULD SELL RONALD REAGAN ON THE MERITS OF THE PROPOSED SUPERCOLLIDER THE AUTHOR AT FIRST DESPAIRS HOW DO YOU TEACH A PRESIDENT HIGHENERGY PHYSICS IN 10 MINUTES MORE IMPORTANT HOW DO YOU TEACH THIS PRESIDENT BUT MR REAGAN AFTER VIEWING MR LEDERMAN'S ARTFUL FILM AND THEN LISTENING IN SILENCE TO AN EVENLY DIVIDED CABINET DEBATE OVER THE SUPERCOLLIDER FINALLY RESPONDS WITH THE DELPHIC UTTERANCE THROW DEEP WHICH ALL PRESENT TAKE TO SIGNIFY HIS APPROVAL WITH THE SUPERCOLLIDER ONCE AGAIN HANGING IN THE BUDGETARY BALANCE IT IS USEFUL TO HAVE MR LEDERMAN'S HEADY ACCOUNT OF HOW THE PROJECT SHOULD HELP FULFILL THE HISTORICAL IMPERATIVE OF PHYSICS IT WILL NOT OF ITSELF USHER IN THE FINAL THEORY THE ENERGIES IT IS DESIGNED TO ACHIEVE THOUGH UNPRECEDENTED WOULD BE A MERE 100 TRILLIONTH OF THOSE PREVAILING JUST AFTER THE BIG BANG WHEN THE FOUR FORCES WERE UNIFIED BUT THEY WILL WITH LUCK BE SUFFICIENT TO BRING INTO EXISTENCE WHAT MR LEDERMAN IMPIOUSLY CALLS THE GOD PARTICLE LESS GRANDIOSELY KNOWN AS THE HIGGS BOSON AFTER THE SCOTS PHYSICIST PETER HIGGS THIS HYPOTHETICAL PARTICLE AND ITS ASSOCIATED FIELD COULD GO FAR IN EXPLAINING HOW AN AMUSINGLY COMPLEX UNIVERSE LIKE OURS CAME INTO BEING OUT OF A PRIMORDIAL STATE OF DULL SIMPLICITY IN THE BEGINNING WAS THE HIGGS FIELD PARAPHRASES MR LEDERMAN WITH SOME HYPERBOLE LEST IT BE IMAGINED THOUGH THAT HE IS PUTTING ON THE THEOLOGICAL AIRS SO FASHIONABLE AMONG PHYSICISTS THESE DAYS HE HASTENS TO ADD THAT PHYSICS IS NOT RELIGION IF IT WERE WE'D HAVE A MUCH EASIER TIME RAISING MONEY 9304130061 930413 HEARD ON THE STREET BREED TECHNOLOGIES' FUTURE IN AIRBAG INDUSTRY SPARKS SOME QUESTIONS AS COMPETITION GROWS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS CHASED BREED TECHNOLOGIES AFTER IT WENT PUBLIC LAST NOVEMBER PUSHING BREED'S STOCK UP FROM ITS OFFERING PRICE OF 17 TO A HIGH OF 21 3/4 BUT SHARES OF THE AIRBAG COMPONENTS MAKER HAVE DEFLATED WHILE OTHER AUTOPARTS STOCKS BURN UP THE ROAD MILLIONS OF DRIVERS OWE A TIP OF THE HAT TO BREED CHAIRMAN AND ENGINEER ALLEN BREED WHO PIONEERED AIRBAG CRASH SENSORS BY 1998 IF NOT SOONER EVERY PASSENGER VEHICLE SOLD IN THE US IS EXPECTED TO HAVE AIRBAG SAFETY EQUIPMENT FOR BOTH DRIVER AND PASSENGERS AIRBAGS ARE CATCHING ON ABROAD TOO SO WHY IS BREED STALLED TODAY AT 17 5/8 UP ONLY 37 FROM ITS IPO PRICE RISING COMPETITION AND A TECHNOLOGICAL TRANSITION IN BREED'S MAIN PRODUCT CRASH SENSORS USED TO TRIGGER AIRBAGS MAKES SOME ANALYSTS SKEPTICAL THAT BREED IS A LONGTERM GROWTH STORY AND NOTHING HINDERS A GROWTH STOCK LIKE DOUBTS ABOUT FUTURE EARNINGS NEARTERM EXPECTATIONS FOR BREED LOOK GREAT ANALYSTS FORECAST FISCAL 1994 PERSHARE EARNINGS TO MORE THAN DOUBLE FROM THIS YEAR'S 56 CENTS A SHARE THE CONSENSUS ESTIMATE OF ANALYSTS TRACKED BY FIRST CALL AND THEY LOOK FOR A 66 LEAP IN EARNINGS FROM FISCAL 1994 TO FISCAL 1995 BREED'S FISCAL YEAR ENDS JUNE 30 BREED THINKS AIRBAGS AND RELATED COMPONENTS COULD GROW INTO A 10 BILLIONAYEAR BUSINESS BY FISCAL 1994 ANALYSTS EXPECT BREED'S SALES TO GROW 72 TO ABOUT 250 MILLION FROM ABOUT 145 MILLION THIS YEAR BY 1995 BREED WANTS TO BE AN INTEGRATED SUPPLIER OF ALL COMPONENTS OF VEHICLE AIRBAGS NOT JUST CRASH SENSORS THAT'S WHY STOCK INVESTORS EAGERLY SCOOPED UP 88 MILLION BREED SHARES IN NOVEMBER'S IPO LED BY GOLDMAN SACHS WE'RE TALKING ABOUT A PIECE OF EQUIPMENT THAT HAS TO GO INTO CARS BECAUSE IT SAVES LIVES SAYS KEVIN L WENCK MANAGER OF THE GT AMERICA GROWTH FUND THERE COULDN'T BE ANY MORE COMPELLING REASON FOR THE INDUSTRY'S GROWTH THAN THAT BREED'S MARKET HAS BECOME MORE COMPETITIVE AND PRICES HAVE SLIPPED BUT THE COMPANY STILL SUPPLIED OVER 60 OF CRASH SENSORS IN US VEHICLES IN 1992 MAJOR BUYERS INCLUDE FORD MOTOR AND GENERAL MOTORS TRW SUPPLIES CHRYSLER BUT CRASH SENSOR TECHNOLOGY IS CHANGING AND BREED'S MARKET SHARE AND EARNINGS GROWTH COULD GET SNIPPED IN THE TRANSITION BY 1996 MANY CAR MAKERS MAY PREFER CHEAPER ELECTRONIC SENSORS NOW IN DEVELOPMENT TO BREED'S ELECTROMECHANICAL DEVICES GIANTS SUCH AS TRW ROBERT BOSCH AND ANALOG DEVICES ARE DEVELOPING ELECTRONIC SENSORS SO IS BREED BUT BY 1996 COMPETITION FOR MARKET SHARE AND SENSOR PRICING COULD BE A LOT HOTTER THAN IT IS TODAY SOME ANALYSTS WARN IN EFFECT SENSORS COULD BECOME A LOWPRICED COMMODITY PRODUCT ESPECIALLY AS THEY BECOME A STANDARD FEATURE ON ALL CARS BREED HAS GOOD GROWTH PROSPECTS FOR THIS YEAR NEXT YEAR AND EVEN THE YEAR AFTER THAT SAYS CHAD BROWN HEAD OF IPO RESEARCH INC BUT BY FISCAL 1996 BREED'S EARNINGS GROWTH COULD SLOW SUBSTANTIALLY HE SAYS MR WENCK MANAGER OF THE GT AMERICA FUND THINKS BREED CAN MANAGE THE PRODUCT TURN A BUSINESS IS A MUCH MORE COMPLEX ORGANIZATION THAN SAYING SOMEONE CAN MAKE THIS HE SAYS ESPECIALLY WHEN IT INVOLVES CRASH SENSORS A PRODUCT THAT NEEDS HIGH CREDIBILITY BREED THINKS IT'S A SURVIVOR EXECUTIVE VICE PRESIDENT RICHARD STOLBACH SAYS WILL ELECTRONIC SENSORS REPLACE THE ELECTROMECHANICAL MARKET IN 1996 NO THAT'S MY STRONGLY HELD OPINION BUT MANY INVESTORS THINK COMPETITION IN CRASH SENSORS WILL HEAT UP AND PRICES WILL SLIDE IN THREE YEARS THAT'S WHY THE STOCK'S MULTIPLE IS CONTRACTING SAYS JOHN MARSHALL PARTNER AT NICHOLASAPPLEGATE CAPITAL MANAGEMENT WHICH OWNS THE STOCK GROWTHSTOCK INVESTORS LIKE MR MARSHALL WHO STILL FAVOR BREED ARE BETTING ON THE COMPANY'S BUSINESS PLAN TO BECOME AN INTEGRATED PROVIDER OF COMPLETE AIRBAG SYSTEMS ONCE A CRASH IS SENSED A SIGNAL IS SENT TO A MODULE THAT CONTAINS COMPONENTS THAT IGNITE AND DISPERSE PROPELLANT AND INFLATE THE AIRBAG BREED IS JUST STARTING TO MAKE INFLATOR UNITS AND BAGS IN LARGER QUANTITITIES COMPLETE UNITS ARE MORE EXPENSIVE AND WOULD CONTINUE BREED'S REVENUE GROWTH BREED SELLS COMPLETE ALLMECHANICAL AIRBAG SYSTEMS TODAY BUT ONLY TO FIAT AND JAGUAR THE STORY FOR BREED GOING FORWARD IS HOW THEY DO IN THE INFLATOR BUSINESS MR MARSHALL SAYS BUT BREED FACES BIG COMPETITORS IN THE INFLATOR ARENA SUCH AS TRW AND MORTON INTERNATIONAL BOTH OF THESE COMPANIES ARE MANUFACTURING IN LARGE QUANTITIES BREED'S MR STOLBACH ADMITS HOWEVER HE ADDS WE DON'T HAVE TO OWN 75 OF THE INFLATOR MARKET TO BE PROFITABLE AND CONTINUE ON A SUBSTANTIAL GROWTH CURVE MR BROWN OF IPO RESEARCH THINKS BREED FACES A BIG CHALLENGE THEIR ABILITY TO REPLACE SENSOR SALES WITH INFLATOR BUSINESS IS NOT ASSURED GIVEN THEY ARE STARTING WELL BEHIND MORTON AND TRW HE CAUTIONS IF BREED'S GROWTH PROJECTIONS MOVE TO THE SLOW LANE HE THINKS THE STOCK COULD HEAD TOWARD 10 OR LOWER SIX MONTHS ENDED DEC 31 1992 9304130060 930413 BUSINESS BRIEF LONE STAR INDUSTRIES INC FIRM FILES PLAN TO REGROUP EQUITY HOLDERS OPPOSE IT LONE STAR INDUSTRIES INC FILED A REORGANIZATION PLAN WITH FEDERAL BANKRUPTCY COURT IN MANHATTAN BUT AN EQUITY SHAREHOLDER COMMITTEE OPPOSED THE PLAN UNDER THE PLAN ALLOWED UNSECURED CLAIMS CURRENTLY ESTIMATED AT ABOUT 564 MILLION WOULD RECEIVE BETWEEN 80 CENTS TO 93 CENTS ON THE DOLLAR PREFERRED SHARE HOLDERS WOULD RECEIVE THEIR PRO RATA SHARE OF 16 OF THE COMMON EQUITY OF THE REORGANIZED LONE STAR VALUED AT BETWEEN 21 MILLION AND 27 MILLION COMMON STOCK HOLDERS WOULD RECEIVE THE BALANCE OF THE COMMON EQUITY WITH TOTAL VALUE ESTIMATED AT BETWEEN 10 MILLION AND 13 MILLION HOWEVER THE EQUITY COMMITTEE SAID INDEPENDENT VALUATIONS INDICATED THAT THE CEMENT PRODUCING CONCERN IN STAMFORD CONN HAD SIGNIFICANTLY UNDERVALUED ITS ASSETS BENEFITTING UNSECURED CREDITORS AT THE EXPENSE OF SHAREHOLDERS NONE OF THE OFFICIAL COMMITTEES INVOLVED IN THE BANKRUPTCY HAVE AGREED TO THE PLAN 9304130059 930413 INTERNATIONAL MEXICANS TOO ARE WARY OF TRADE PACT FEARING LOSS OF SOME WORKER PROTECTIONS BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY AT THE UNIVERSITY OF THE WORKER HERE MANUEL FUENTES GIVES HIS BLUECOLLAR AUDIENCE A PRIMER ON US AND MEXICAN LABOR LAW IN THE US YOU HAVE THE RIGHT TO STRIKE BUT THE BUSINESS OWNERS HAVE THE RIGHT TO REPLACE THE STRIKERS SAYS THE LABOR ATTORNEY TO THE AMAZED GROUP OF WORKERS IN OUR COUNTRY THIS IS CONDEMNED US UNION LEADERS LOOKING TO ATTACK THE NORTH AMERICAN FREE TRADE AGREEMENT BECAUSE OF MEXICO'S ALLEGEDLY WEAK LABOR LAWS MIGHT BE EQUALLY AMAZED THE ISSUE OF HOW WORKERS ARE PROTECTED CARRIES SURPRISES FOR ALL SIDES AND IS PROMINENTLY ON THE TABLE TODAY AS US MEXICAN AND CANADIAN NEGOTIATORS MEET HERE TO CRAFT A SIDE AGREEMENT TO NAFTA ON LABOR THE LABOR PACT AND A SIMILAR UNDERSTANDING ON THE ENVIRONMENT HAVE BEEN INCLUDED IN THE BARGAINING AS PART OF A WASHINGTON EFFORT TO WIN APPROVAL OF NAFTA FROM SKEPTICS IN CONGRESS THE CLINTON ADMINISTRATION HAS PREPARED A PLAN LIMITING THE POWER OF NAFTA'S LABOR AND ENVIRONMENTAL COMMISSIONS ALLAYING CONCERNS HERE THAT THEY WOULD INTRUDE ON MEXICO'S SOVEREIGNTY THE SIDE AGREEMENTS ARE DESIGNED TO ENSURE THAT MEXICO DOESN'T GAIN AN ADVANTAGE BECAUSE OF HAVING LOWER STANDARDS BUT AS MR FUENTES AND OTHER MEXICAN LABOR EXPERTS POINT OUT WHILE WAGES MAY BE LOW IN THIS NATION OF 85 MILLION JOB SECURITY AND BENEFITS ARE HIGH AT LEAST ON PAPER PROFITSHARING PAID MATERNITY LEAVE AND GOVERNMENTRUN VACATION GETAWAYS ARE ALL CONSTITUTIONALLY MANDATED CHRISTMAS BONUSES OF 15 DAYS' PAY ARE MANDATORY A DISMISSED WORKER MUST RECEIVE SEVERANCE PAY OF THREE MONTHS PLUS 20 DAYS' PAY FOR EACH YEAR OF SERVICE ENFORCEMENT OF THESE WORKERFRIENDLY PROVISIONS IS ANOTHER MATTER MEXICAN EXPERTS SAY THAT COMPLIANCE BY LARGE COMPANIES MAY BE AS HIGH AS 90 BUT THAT ALMOST ALL SMALLER COMPANIES VIOLATE THE LABOR LAWS IN ONE WAY OR ANOTHER NAFTA MAKES UNIONS ON BOTH SIDES OF THE BORDER JITTERY VICTOR MUNOZ AN AFLCIO ORGANIZER IN LOS ANGELES SAYS MEXICANS WORRY THAT THEIR LABOR LAWS WILL BE DEGRADED TO EQUAL THOSE IN THE US WHILE HIS UNION WORRIES THAT US WAGES WILL BE DEGRADED TO MEXICAN LEVELS CONSIDER THE CASE OF CONCHITA ABDALA WHOSE MEXICAN BENEFITS FAR SURPASS THOSE OF US WORKING WOMEN WHEN MRS ABDALA A LEGAL SECRETARY BECAME PREGNANT SHE GOT 42 DAYS OF PAID LEAVE BEFORE AND AFTER THE DELIVERY ON THE 43RD DAY AFTER BABY ROBERTO'S BIRTH THE GOVERNMENT PROVIDED DAY CARE AND SHE RETURNED TO WORK EVEN MILK FOR ROBERTO WAS PROVIDED FREE IT IS FANTASTIC SAYS MRS ABDALA FOR THESE BENEFITS AND OTHERS MRS ABDALA CONTRIBUTES ABOUT 5 OF HER SALARY HER EMPLOYER PAYS ABOUT THREE TIMES THAT AMOUNT MRS ABDALA'S SALARY IS ABOUT 1000 A MONTH JUAN SAUCEDO ON THE OTHER HAND WASN'T TREATED AS WELL THE 31YEAROLD WAS FIRED A YEAR AGO FROM HIS 500AMONTH JOB AS A BANK DIRECTOR'S CHAUFFEUR WHEN HE DIDN'T GET HIS LEGALLY MANDATED SEVERANCE PAY MR SAUCEDO TOOK HIS EMPLOYMENT CONTRACT TO THE FEDERAL CONCILIATION AND ARBITRATION BOARD THEY TOLD ME I WAS GOING TO LOSE BECAUSE THE EMPLOYER HAD ALL THE MONEY SAYS MR SAUCEDO SPEAKING METAPHORICALLY OF THE ADVANTAGE OF BIG BUSINESS OVER INDIVIDUAL WORKERS MR SAUCEDO'S EXPERIENCE MAY NOT BE SO UNUSUAL LAIDOFF PETROLEUM WORKERS SET UP A SHANTYTOWN FOR SEVERAL WEEKS LAST FALL IN THE CAPITAL'S CENTRAL SQUARE TO DEMAND THEIR SEVERANCE PAY AFTER NEARLY A YEAR THE OIL MONOPOLY AGREED TO PAY MILLIONS OF DOLLARS TO THE PROTESTERS MARK CHASSINAT WHO HAS OPERATED A PRIVATE MAILING SERVICE FOR 17 YEARS HERE SEES SUCH EVENTS AS PART OF A BROADER EFFORT BY MEXICO'S LABOR COURTS TO MOVE TOWARD A MIDDLE GROUND TEN YEARS AGO THEY WERE VERY MUCH ON THE EMPLOYEE SIDE SAYS MR CHASSINAT NOW THEY ARE BECOMING MORE EMPLOYERORIENTED MR CHASSINAT ADDS NO ONE IS GIVEN THREE MONTHS' SEVERANCE PAY AUTOMATICALLY ANYMORE THAT LAW IS NO WAY TO ATTRACT FOREIGN CAPITAL OBSERVERS SAY THE CHANGE TO A MORE EMPLOYERFRIENDLY INTERPRETATION OF LABOR LAWS IS LARGELY A RESULT OF THE NEW CLIMATE CREATED BY THE SALINAS ADMINISTRATION WHILE MEXICAN WORKERS HAVE A CONSTITUTIONAL RIGHT TO STRIKE POTENTIAL STRIKERS MUST LEAP SEVERAL LEGAL HURDLES BEFORE THE STRIKE IS CONSIDERED LEGITIMATE IN 1992 UNIONS ANNOUNCED PLANS TO EXERCISE THAT RIGHT SOME 7000 TIMES ACCORDING TO THE CONCILIATION AND ARBITRATION BOARD HOWEVER ONLY 2 OF THE PLANNED STRIKES RESULTED IN PLANT SHUTDOWNS MR FUENTES THE LABOR ATTORNEY REFERS TO THE LABOR COURTS AS A FREEZER FOR LABOR RIGHTS JAIME VEGA A 31YEAROLD GRAPHIC DESIGNER THOUGHT HIS UNION HAD CLEARED THE HURDLES WHEN HE AND HIS FELLOW WORKERS CALLED A STRIKE AGAINST EL HERALDO DE IRAPUATO A NEWSPAPER IN A CENTRAL MEXICO FARMING TOWN THE WORKERS' UNION WAS OFFICIALLY RECOGNIZED AND THE STRIKE WAS DECLARED LEGAL BUT LAST MONTH A LABOR COURT OVERTURNED A LOWERCOURT RULING AND DECLARED THE STRIKE ILLEGITIMATE IT'S ALL POLITICS SAYS A FRUSTRATED MR VEGA 9304130058 930413 BUSINESS BRIEF HILLENBRAND INDUSTRIES INC ADVISER IS RETAINED TO HELP DETERMINE OPTIONS FOR UNIT HILLENBRAND INDUSTRIES INC BATESVILLE IND SAID IT HIRED MORGAN STANLEY & CO TO HELP THE COMPANY DETERMINE ITS STRATEGIC OPTIONS FOR ITS AMERICAN TOURISTER SUBSIDIARY INCLUDING THE POSSIBLE SALE OF THE UNIT AMERICAN TOURISTER ALONG WITH A SECURITYLOCK MAKER THAT COMPRISES HILLENBRAND'S DURABLES SEGMENT REPORTED A 5 MILLION OPERATING LOSS FOR THE YEAR ENDED NOV 28 THE COMPANY TOOK AN 8 MILLION CHARGE TO ACCOUNT FOR CONSOLIDATION OF AMERICAN TOURISTER'S OPERATIONS IN FLORIDA FROM PLANTS IN RHODE ISLAND AND THE DOMINICAN REPUBLIC 9304130057 930413 BUSINESS BRIEF RB&W CORP METAL PARTS CONCERN TO POST RISE IN FIRSTQUARTER PROFIT RB&W CORP MENTOR OHIO SAID IT EXPECTS TO REPORT A RISE IN FIRSTQUARTER EARNINGS AND IT AGREED WITH A GROUP OF LENDERS TO EXTEND MATURITIES ON 36 MILLION IN DEBT THAT CAME DUE APRIL 1 RB&W EARNED 400000 OR SEVEN CENTS A SHARE IN THE 1992 FIRST QUARTER BEFORE AN EXTRAORDINARY GAIN THE MAKER OF FORMED METAL PARTS PROJECTED THAT IT WILL BE PROFITABLE FOR THE YEAR WITH ITS MANUFACTURING AND DISTRIBUTION DIVISIONS IN THE BLACK RB&W ALSO REPORTED THAT ITS FOURTHQUARTER LOSS WIDENED TO 128 MILLION OR 227 A SHARE FROM 95 MILLION OR 177 A SHARE A YEAR EARLIER EXCLUDING RESTRUCTURING CHARGES THE LOSS WAS 22 MILLION OR 39 CENTS A SHARE COMPARED WITH 5 MILLION OR 93 CENTS A SHARE BEFORE CHARGES A YEAR EARLIER SALES ROSE 16 TO 465 MILLION THE COMPANY SAID THE IMPROVED EARNINGS OUTLOOK IS DUE TO MANUFACTURING REORGANIZATION AND COST CUTS MURRAY J HOWE VICE CHAIRMAN SAID THE NEW DEBT TERMS REDUCE THE INTEREST RATE AND CALL FOR PRINCIPAL TO COME DUE BEGINNING APRIL 1 1994 WITH SOME LENDERS ALLOWING LONGER MATURITIES 9304130056 930413 TECHNOLOGY BRIEF IPC CORP INITIAL OFFERING TO VALUE COMPANY AT 4552 MILLION IPC CORP A SINGAPORE COMPUTER MAKER IS LAUNCHING AN INITIAL PUBLIC OFFERING THAT VALUES THE COMPANY AT ABOUT 740 MILLION SINGAPORE DOLLARS US4552 MILLION IPC DESIGNS MAKES AND SELLS IBMCOMPATIBLE DESKTOP AND LAPTOP COMPUTERS UNDER THE IPC AND AUSTIN BRAND NAMES AND COMPUTERIZED CASH REGISTERS UNDER THE IPC NAME EARLIER THIS YEAR THE COMPANY ACQUIRED AUSTIN COMPUTER SYSTEMS A US PC MAILORDER CONCERN IN 1992 IPC NET INCOME MORE THAN TRIPLED TO S415 MILLION FROM S13 MILLION IN 1991 AS SALES JUMPED 50 TO S2745 MILLION IPC SAID GROWTH PROSPECTS OF THE GROUP WILL REMAIN GOOD IN 1993 THE STOCK OFFERING ON THE SINGAPORE EXCHANGE CONSISTS OF 250 MILLION SHARES REPRESENTING A 25 STAKE IN THE COMPANY THE NGIAM FAMILY WILL RETAIN THE REMAINING 75 STAKE 9304130055 930413 BUSINESS BRIEF ZEOS INTERNATIONAL LTD PRODUCTION OF MOTHERBOARDS TO BE TRANSFERRED TO INTEL ZEOS INTERNATIONAL LTD MINNEAPOLIS SAID IT SIGNED AN AGREEMENT THAT WILL SHIFT PRODUCTION OF THE MOTHERBOARDS FOR ITS DESKTOP COMPUTERS TO INTEL CORP THE MOTHERBOARDS WHICH INCLUDE A COMPUTER'S CENTRAL PROCESSING UNIT MICROPROCESSOR SUPPORT CHIPS RANDOMACCESS MEMORY AND EXPANSION SLOTS WERE PREVIOUSLY SUPPLIED BY A SMALL COMPANY IN THE TWIN CITIES AREA SAID RICK APPLE ZEOS'S VICE PRESIDENT OF MARKETING HE WOULDN'T IDENTIFY THE COMPANY MR APPLE SAID THE COMPANY MADE THE CHANGE BECAUSE OF INTEL'S MODERN MANUFACTURING PROCESS AND BECAUSE OF ITS RELIABILITY AND FLEXIBILITY IN DELIVERY HE WOULDN'T GIVE FINANCIAL DETAILS OF THE ARRANGEMENT NOTING ONLY THAT DESKTOP COMPUTERS REPRESENT THE BULK OF ZEOS'S BUSINESS CLINTON MORRISON AN ANALYST WITH JOHN G KINNARD & CO SAID THE ARRANGEMENT WITH INTEL WILL HELP LOSSRIDDEN ZEOS MANAGE ITS BALANCE SHEET AND SIMPLIFY ITS BUSINESS 9304130054 930413 BUSINESS BRIEF AUTOMATIC DATA PROCESSING INC FISCAL THIRDQUARTER PROFIT ROSE 16 TO 925 MILLION ROSELAND NJ AUTOMATIC DATA PROCESSING INC SAID FISCAL THIRDQUARTER EARNINGS ROSE 16 TO A RECORD 925 MILLION OR 65 CENTS A SHARE BOLSTERED BY A 17 INCREASE IN REVENUE FROM ITS PAYROLLPROCESSING OPERATIONS JOSH S WESTON CHAIRMAN AND CHIEF EXECUTIVE OF THE DATA PROCESSING COMPANY SAID HE EXPECTS EARNINGS FOR THE FISCAL YEAR ENDING IN JUNE TO INCREASE BY CLOSER TO 15 THAN 10 FROM FISCAL 1992 NET INCOME OF 2562 MILLION OR 184 A SHARE THE COMPANY SAID PROFIT FOR THE THIRD QUARTER ENDED MARCH 31 CLIMBED ON AN INCREASED NUMBER OF OUTSTANDING SHARES THE COMPANY POSTED A PROFIT OF 798 MILLION OR 57 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 12 TO NEARLY 613 MILLION FROM 5453 MILLION IN 1992'S FISCAL THIRD QUARTER FOR THE FIRST NINE MONTHS THE COMPANY SAID NET CLIMBED 15 TO 2145 MILLION OR 152 A SHARE FROM 1859 MILLION OR 134 A SHARE A YEAR EARLIER REVENUE FOR THE PERIOD CLIMBED 14 TO 163 BILLION FROM 142 BILLION A YEAR AGO 9304130053 930413 WHAT'S NEWS BUSINESS AND FINANCE STOCK AND BOND PRICES RALLIED AMID GROWING OPTIMISM THAT INFLATION WILL REMAIN IN CHECK THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR BOND JUMPED 3/4 POINT PUSHING ITS YIELD DOWN TO 679 THE DOW JONES INDUSTRIALS GAINED 3161 POINTS TO 342809 THE NASDAQ INDEX SURGED 101 JAPAN'S RULING PARTY PROPOSED A RECORD SPENDING PACKAGE TO STIMULATE THE NATION'S ECONOMY AND ANSWER FOREIGN DEMANDS THAT JAPAN REDUCE ITS BIG TRADE SURPLUS THE PARTY SAID THE PACKAGE WOULD TOTAL 117 BILLION INTEL'S PROFIT NEARLY TRIPLED IN THE FIRST QUARTER TO 548 MILLION REFLECTING HEAVY DEMAND FOR ITS 486 CHIP AND TIGHT COST CONTROLS THE CHIP MAKER'S STOCK CLIMBED 450 OR 4 TO 11750 MOTOROLA'S EARNINGS SURGED 63 IN THE FIRST QUARTER ON BRISK SALES OF SEMICONDUCTORS AND CELLULAR PRODUCTS CLINTON IS FOCUSING THIS WEEK ON FIGHTING A REPUBLICAN FILIBUSTER THAT HAS STALLED HIS 16 BILLIONPLUS STIMULUS PACKAGE THE PRESIDENT IS PUBLICLY CRITICIZING THE FILIBUSTER WHILE REACHING OUT TO INDIVIDUAL GOP MODERATES THE BIG THREE AUTO MAKERS WILL UNVEIL TODAY A JOINT PATENT COVERING A PROCESS FOR A LIGHTWEIGHT MATERIAL THAT COULD REPLACE STEEL IN CAR BODIES NISSAN'S US SALES CHIEF QUIT APPARENTLY SIGNALING A BROADER SHAKEUP THE CAR MAKER'S US SALES ARM HASN'T MET EXPECTATIONS ANALYSTS SAID US MANUFACTURERS THAT ARE DOING BUSINESS IN EUROPE ARE SLASHING SALES AND PROFIT ESTIMATES AMID A SLUMP EXECUTIVES OF LARGE AND MIDSIZE COMPANIES EXPECT SALES AND PROFITS TO GROW FASTER IN THE SECOND QUARTER THAN IN THE FIRST TWO SURVEYS INDICATE THE OPTIMISTIC PREDICTIONS ALSO FORESEE AN INCREASE IN CAPITAL SPENDING BUT DON'T INCLUDE EXPECTATIONS OF JOB GROWTH THREE REGIONAL BANKING COMPANIES POSTED SHARPLY IMPROVED FIRSTQUARTER RESULTS MIDLANTIC REVERSED A YEAREARLIER LOSS SOCIETY'S EARNINGS MORE THAN DOUBLED AND BARNETT'S NET ROSE 37 HOME SHOPPING NETWORK POSTED AN UNEXPECTEDLY LARGE LOSS FOR ITS SECOND QUARTER IN NONEXCHANGE TRADING HOME SHOPPING'S SHARES FELL 150 OR 22 TO 525 IN THE WAKE OF NEWS THAT LIBERTY MEDIA WITHDREW AN OFFER NBC ISN'T FOR SALE SAID GENERAL ELECTRIC CHAIRMAN JOHN WELCH QUELLING RUMORS THAT SWIRLED FOR TWO YEARS THAT GE WANTED TO SELL THE NETWORK ELI LILLY'S ELECTRIC WIRE TO HELP IN THE INSTALLATION OF HEART DEVICES WAS APPROVED BY AN FDA ADVISORY PANEL CHINA'S GUANGDONG PROVINCE PLANS TO ISSUE DEBT TO US AND EUROPEAN INVESTORS FOR THE FIRST TIME SINCE THE COMMUNIST TAKEOVER OF THE NATION IN 1949 THE PLAN CALLS FOR SELLING 150 MILLION OF FIVEYEAR FLOATINGRATE BONDS CYPRESS SEMICONDUCTOR REPORTED BETTERTHANEXPECTED EARNINGS OF 25 MILLION FOR THE FIRST QUARTER ON A SURGE IN CHIP SALES AND COST CUTTING ITS STOCK ROSE 375 CENTS OR 4 TO 1025 PRICE STERN SLOAN SHARES SOARED 350 OR 74 TO 825 AFTER PUTNAM BERKLEY DISCLOSED TALKS TO ACQUIRE THE PUBLISHER FOR ABOUT 404 MILLION PUTNAM A MATSUSHITA ELECTRIC INDUSTRIAL UNIT IS OFFERING 9625 A SHARE BONDS LEHMAN BROTHERS TREASURY INDEX 510079 UP 3519 COMMODITIES OIL 2045 A BARREL UP 23 CENTS DOW JONES FUTURES INDEX 12455 UP 057 SPOT INDEX 12176 OFF 129 DOLLAR 11280 YEN OFF 035 15935 MARKS OFF 00110 9304130052 930413 BUSINESS BRIEF TORONTODOMINION BANK CONCERN TO BUY CREDIT LINES FROM WESTPAC OF AUSTRALIA TORONTODOMINION BANK SAID IT PLANS TO ACQUIRE FROM WESTPAC BANKING CORP AS MUCH AS 55 BILLION IN CREDIT COMMITMENTS TO US COMPANIES TORONTODOMINION SAID ABOUT 12 BILLION CURRENTLY IS DRAWN ON THE CREDIT LINES THE PURCHASE PRICE WILL BE EQUAL TO THE LOANS OUTSTANDING WHEN THE TRANSACTION CLOSES WHICH IS EXPECTED BY THE END OF AUGUST SAID STEPHEN MCDONALD SENIOR VICE PRESIDENT OF TORONTODOMINION'S US DIVISION WE ARE ENDEAVORING TO EXPAND OUR DEPTH AND PRESENCE IN THE US MARKET MR MCDONALD SAID HE SAID THE CREDIT FACILITIES TO ABOUT 100 US COMPANIES ARE ALL OF HIGH QUALITY TORONTODOMINION CANADA'S FIFTH LARGEST HAD LOAN ASSETS IN THE US OF 96 BILLION CANADIAN DOLLARS US76 BILLION AS OF OCT 31 ITS FISCAL YEAR END THE BANK'S TOTAL LOAN PORTFOLIO WAS C582 BILLION AT OCT 31 WESTPAC BASED IN AUSTRALIA HAS BEEN SELLING ASSETS AND CUTTING STAFF SINCE IT REPORTED A LOSS OF 156 BILLION AUSTRALIAN DOLLARS US111 BILLION FOR THE YEAR ENDED SEPT 30 9304130051 930413 JAPAN UNVEILS SPENDING PLAN OF 117 BILLION LIBERAL DEMOCRATIC PARTY'S FISCAL PACKAGE SEEKS TO KICKSTART ECONOMY BY JOHN BUSSEY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE RULING LIBERAL DEMOCRATIC PARTY ANNOUNCED TUESDAY MORNING A RECORD FISCALSTIMULUS PACKAGE MEANT TO KICKSTART JAPAN'S ECONOMY AND ANSWER FOREIGN DEMANDS THAT THE NATION REDUCE ITS HUGE TRADE SURPLUS THE LDP SAID THE PACKAGE WOULD TOTAL 132 TRILLION YEN 117 BILLION IN SPENDING PROGRAMS BUT IT DIDN'T PROVIDE FULL DETAILS BECAUSE OF THIS WE'LL BE ABLE TO ATTAIN 33 ECONOMIC GROWTH IN THE CURRENT FISCAL YEAR AND ALSO WILL BE ABLE TO CURB THE TRADE SURPLUS SAID HIROSHI MITSUZUKA A TOP LDP OFFICIAL MANY PRIVATE ECONOMISTS HOWEVER VIEW THAT GROWTH FIGURE AS FAR TOO OPTIMISTIC THE PROGRAM IS A KEY PART OF THE PACKAGE PRIME MINISTER KIICHI MIYAZAWA IS TAKING TO WASHINGTON THIS WEEK FOR HIS FIRST MEETING WITH PRESIDENT CLINTON THE CLINTON ADMINISTRATION HAS BEEN PRESSING JAPAN TO BOOST SPENDING ON ITS ECONOMY TO INCREASE DOMESTIC DEMAND AND THEREBY BOOST IMPORTS TO THE NATION THE ADMINISTRATION ALSO HAS BEEN WORRIED THAT REAL SPENDING IN THE PACKAGE WOULD TOTAL MUCH LESS THAN THE ANNOUNCED FIGURE OFFICIALS IN WASHINGTON HAVE SAID THAT EVEN A STIMULUS PACKAGE OF 13 TRILLION YEN WOULD LIKELY BE RECEIVED COOLLY AS ONLY A GOOD FIRST STEP THAT SAID THE ANNOUNCED FIGURE FOR THE STIMULUS PROGRAM DOES EXCEED THE 107 TRILLION PACKAGE JAPAN ENACTED LAST YEAR TO TRY TO LIFT ITS SAGGING ECONOMY THE ECONOMIC DOWNTURN HOWEVER HAS PERSISTED AND WHILE THE FINANCIAL MARKETS HAVE BEEN EXPECTING THE ANNOUNCEMENT FOR WEEKS THE NIKKEI STOCK AVERAGE SURGED 361 POINTS IN EARLY TUESDAY TRADING AFTER THE LDP'S ANNOUNCEMENT WHILE THE LDP DIDN'T PROVIDE A FULL EXPLANATION OF THE NEW FISCALSTIMULUS PROGRAM IT DID SAY THE PROGRAM WOULD INCREASE LOCAL SPENDING ON PUBLIC WORKS TO 35 TRILLION YEN AND INCLUDE 12 TRILLION YEN FOR BUYING LAND IT ADDED THAT IT WILL INCREASE APPROPRIATIONS TO PUBLIC HOUSINGLOAN INSTITUTIONS BY 18 TRILLION YEN WHICH WOULD BE ENOUGH TO ADD 50000 HOUSES IT SAID IT WOULD INCREASE ALLOCATIONS FOR PUBLIC LENDING TO SMALL AND MEDIUMSIZE COMPANIES BY 19 TRILLION YEN THE LDP SAID IT WOULD ALSO CALL FOR FLEXIBLE MONETARY POLICY LEAVING OPEN THE POSSIBILITY OF A FURTHER DECLINE IN JAPAN'S INTEREST RATES THE LDP SAID THE PACKAGE WHICH WAS SLATED FOR APPROVAL BY THE FULL GOVERNMENT LATER IN THE DAY TUESDAY WOULD INCLUDE ONLY ABOUT 150 BILLION YEN IN TAX BREAKS ON INVESTMENTS FOR SMALL AND MEDIUMSIZE COMPANIES HOUSING AND EDUCATION THE JAPANESE GOVERNMENT HAS BEEN WORKING OVERTIME TO TRY TO ASSURE FOREIGN TRADING PARTNERS THAT THE PACKAGE WILL INDEED WORK TO STIMULATE ITS ECONOMY SPUR THE NATION'S APPETITE FOR FOREIGN GOODS AND BRING DOWN THE TRADE SURPLUS INDEED IN MEETINGS WITH THE FOREIGN PRESS IN RECENT DAYS JAPANESE OFFICIALS STUNG BY ACCUSATIONS THAT THEY REMAIN TOO PASSIVEHAVE TRIED TO PAINT A PICTURE OF JAPAN GRAPPLING HEADON WITH ITS ECONOMIC AND TRADE PROBLEMS ASSERTIVE SAID FOREIGN MINISTRY SPOKESMAN MASAMICHI HANABUSA WHEN ASKED TO CHARACTERIZE PRIME MINISTER MIYAZAWA'S COMING DIPLOMATIC MISSION TO WASHINGTON WE ARE SERIOUS WE WILL TRY TO SET THE AGENDA JAPAN IS TRYING TO TAKE INITIATIVES ADDED ANOTHER TOP FOREIGN MINISTRY OFFICIAL AT A PRESS BRIEFING LOOKING BACK ON THE PAST IT HAS BEEN RATHER EXCEPTIONAL FOR JAPAN TO MAKE CONCRETE PROPOSALS THIS TIME PRIME MINISTER MIYAZAWA IS WILLING TO DO SO BUT WHEN MR CLINTON ACTUALLY SITS DOWN WITH MR MIYAZAWA HE'S LIKELY TO FIND THAT FAR FROM BOLD NEW INITIATIVES JAPAN IS PROPOSING BUSINESS AS USUALAND IS STILL JUST REACTING TO THE US NOTABLY JAPAN WILL PROBABLY PROVE AS VAGUE AS EVER ABOUT REDUCING ITS TRADE SURPLUSEASILY THE ONE AREA PRESIDENT CLINTON CARES MOST ABOUT FOR EXAMPLE IF WASHINGTON HOPED FOR A SPECIFIC SETASIDE FROM THE PACKAGE TO PURCHASE US GOODS SOMETHING OFFICIALS IN THE CLINTON ADMINISTRATION ALL BUT ASKED FOR LAST MONTH THEY'LL BE DISAPPOINTED WE HAVE EXPLAINED OUR OPPOSITION TO SETASIDES SAYS SOZABURO OKAMATSU DIRECTOR GENERAL OF INTERNATIONAL TRADE POLICY AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY THE JAPANESE MARKET IS OPEN AND THERE IS NO DISCRIMINATION AGAINST FOREIGN FIRMS AND IF MR CLINTON CONSIDERED THE RECENT SUCCESS OF THE SEMICONDUCTOR AGREEMENT WITH JAPAN A MODEL FOR THE FUTURE HE'S IN FOR ANOTHER DISAPPOINTMENT THE AGREEMENT SET OUT TO RAISE THE FOREIGN SHARE OF JAPAN'S SEMICONDUCTOR MARKET THE TARGET WAS 20 ACCORDING TO THE US THAT FIGURE WAS SURPASSED LAST YEAR AND TO THE CLINTON ADMINISTRATION THAT SEEMED A TREMENDOUS SUCCESS BUT JAPAN SEES IT DIFFERENTLY IT HAS BEEN QUICK TO SQUELCH EXPECTATIONS THAT IT'S WILLING TO ACCEPT NUMERICAL QUOTAS IN THE FUTUREIN ANY TRADE SECTOR WE NEVER MADE ANY AGREEMENT ON MANAGED TRADE PRIME MINISTER MIYAZAWA SAID IN AN INTERVIEW WITH FOREIGN REPORTERS HITTING THE 20 FIGURE WAS A COINCIDENCE INSTEAD MR CLINTON IS LIKELY TO HEAR WELLWORN CALLS FOR TASK FORCES AND DISCUSSIONS TO CONTEND WITH THE TRADE IMBALANCE OR AS ONE FOREIGN MINISTRY OFFICIAL PUTS IT THE PRIME MINISTER HAS IN MIND THE IMPORTANCE OF AGREEING ON THE NEW MODALITY OF DIALOGUE BETWEEN THE NEW ADMINISTRATION AND THE JAPANESE GOVERNMENT AID FOR RUSSIA PRIME MINISTER MIYAZAWA ALSO IS LIKELY TO RAISE THE TOPIC OF RUSSIAN AID WITH MR CLINTON THIS IS ONE MAJOR INTERNATIONAL INITIATIVE JAPAN IS INDEED BACKING JAPAN ALSO IS HOSTING AN INTERNATIONAL CONFERENCE ON THE TOPIC THIS WEEK IN ADDITION THERE WILL BE LESSER INITIATIVES ON THE AGENDA WITH PRESIDENT CLINTON SUCH AS POSSIBLE JOINT VENTURES BETWEEN JAPAN AND THE US IN SCIENCE AND TECHNOLOGY DURING THEIR FRIDAY MEETING THE TWO LEADERS ALSO WILL TALK ABOUT THE GLOBAL ENVIRONMENT AND FINANCIAL HELP FOR DEVELOPING NATIONS I THINK CONTINUITY WILL BE THE WATCHWORD SAYS ONE WESTERN DIPLOMAT MR MIYAZAWA TOO WILL FIND THAT MANY THINGS HAVEN'T CHANGED SINCE HIS LAST TRIP TO THE US IN 1992 ONE CONSTANT US SUSPICION OF JAPANESE INTENTIONS POLL'S FINDING CITED A RECENT GALLUP POLL SPONSORED BY JAPAN'S FOREIGN MINISTRY FOUND THAT 40 OF AMERICANS BELIEVE JAPAN IS NOT A DEPENDABLE ALLY MEANWHILE ONE OF THE HOTTESTSELLING NOVELS IN THE US THESE DAYS IS RISING SUN A MYSTERY FILLED WITH CARTOONISH CARICATURES OF JAPANESE EXECUTIVES SCHEMING TO UNDERCUT US INDUSTRY AND WHEN PRESIDENT CLINTON OFFHANDEDLY TOLD RUSSIAN PRESIDENT BORIS YELTSIN THAT THE JAPANESE SOMETIMES SAY YES WHEN THEY MEAN NO IT CONFIRMED FOR MANY JAPANESE RIGHTLY OR WRONGLY THAT THE US DOESN'T REALLY RESPECT ITS LONGTIME ALLY IN A NEWS CONFERENCE FOR FOREIGN REPORTERS MR MIYAZAWA GRACIOUSLY PASSED OVER MR CLINTON'S FAUX PAS NOTING THAT YES AND NO ARE MISINTERPRETED IN MANY CULTURES INCLUDING JAPAN'S IT'S VERY DELICATE HE SAID IN FLUENT ENGLISH SUGGESTING THAT EVEN IN THE US THINGS CAN GET CONFUSED YES WE HAVE NO BANANASTHAT REMINDED ME OF THAT SONG HE SAID MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE 9304130050 930413 INTERNATIONAL BRIEF MAZDA MOTOR CORP SUMITOMO CHINESE CONCERN IN VENTURE TO SELL MAZDAS SUMITOMO CORP A LEADING JAPANESE TRADING HOUSE SAID IT SET UP A JOINT VENTURE WITH A CHINESE COMPANY IN SHANGHAI TO SELL MAZDA MOTOR CORP'S CARS IN THE LOCAL MARKET THE NEW COMPANY SUMMIT MOTORS SHANGHAI LTD IS CAPITALIZED AT 500000 WITH SUMITOMO HOLDING A 60 STAKE WHILE NANJING HONG KONG CHANGJIANG CO OWNS THE REMAINDER THE NEW COMPANY AIMS TO SELL ANNUALLY 600 TO 700 MAZDAS SUCH AS THE JAPANESE AUTO MAKER'S 929 MODEL SEDAN AND MINIVAN MPV MODEL THE MOVE REFLECTS MAZDA'S EFFORTS TO BROADEN ITS ACTIVITIES IN THE CHINESE MARKET JAPANESE TRADER TOMEN CORP LAUNCHED A VENTURE IN HONG KONG LAST NOVEMBER TO SELL MAZDA'S CARS IN CHINA A MAZDA SPOKESMAN SAID THE NUMBER OF SERVICE STATIONS IN CHINA THAT HANDLE MAINTENANCE AND PROVIDE AUTO PARTS TO CUSTOMERS WILL DOUBLE BY MARCH 1994 FROM THE 14 OWNED BY SUMITOMO AND TOMEN 9304130049 930413 INTERNATIONAL BRIEF DAEWOO CORP SOUTH KOREAN AUTO MAKER TO ADD PRODUCTION FACILITIES DAEWOO CORP ONE OF SOUTH KOREA'S LARGEST COMPANIES LAUNCHED A 24 BILLION PROJECT TO INCREASE ITS DOMESTIC CAR PRODUCTION CAPACITY TO 12 MILLION BY 2000 FROM THE CURRENT 500000 IN THE FIRST OF TWO PHASES SOUTH KOREA'S NO 3 AUTO MAKER WILL BUILD A PLANT CAPABLE OF PRODUCING 12000 EIGHTTON TRUCKS 100000 ONETON TRUCKS AND 10000 BUSES A YEAR THE COMPANY SAYS THE PLANT WILL BE BUILT NEAR KUNSAN A PORT CITY ON SOUTH KOREA'S WEST COAST 240 KILOMETERS SOUTHWEST OF SEOUL THE SECOND PHASE BEGINNING IN 1996 WILL ADD FACILITIES TO MAKE 300000 PASSENGER CARS AND 82000 TRUCKS AND OTHER COMMERCIAL VEHICLES DAEWOO BASED IN SEOUL ALSO IS PUSHING A MASSIVE PROJECT TO EXPAND ITS OVERSEAS CARPRODUCTION CAPACITY TO ONE MILLION BY THE YEAR 2000 IT ALREADY HAS BUILT A BUS ASSEMBLY PLANT IN THE PHILIPPINES WITH AN ANNUAL CAPACITY OF 2000 IN ADDITION TO AUTO PRODUCTION DAEWOO IS INVOLVED IN TRADING CONSTRUCTION SHIPBUILDING ELECTRONICS TELECOMMUNICATIONS HOTELS MACHINE TOOLS AEROSPACE AND FINANCING 9304130048 930413 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MARCH 31 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9304130047 930413 BUSINESS BRIEF WESTCOTT COMMUNICATIONS INC FIRM EXPANDS ITS INTERESTS IN INTERACTIVE TV INDUSTRY WESTCOTT COMMUNICATIONS INC SIGNALING ITS ENTRY INTO INTERACTIVE EDUCATIONAL TELEVISION SAID IT ACQUIRED THE BUSINESS AND CERTAIN ASSETS OF TIIN NETWORK INC FOR STOCK VALUED AT 116 MILLION AND THE ASSUMPTION OF CERTAIN LIABILITIES THE CARROLLTON TEXAS OPERATOR OF SPECIALIZED SATELLITE TV NETWORKS SAID CLOSELY HELD TIIN PROVIDES INTERACTIVE EDUCATIONAL PROGRAMS FOR STUDENTS IN GRADES KINDERGARTEN THROUGH 12 TIIN POSTED A NET LOSS OF 697000 ON REVENUE OF 73 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 WESTCOTT SAID CATO CARPENTER AN ANALYST AT ALEX BROWN & SONS INC IN BALTIMORE SAID THE ACQUISITION IS A CONTINUATION OF WESTCOTT'S MOVE INTO INTERACTIVE TELEVISION NETWORKS WESTCOTT RECENTLY ACQUIRED EXECUTIVE COMMUNICATIONS INC A PITTSBURGHBASED TELECONFERENCING SERVICES COMPANY AND THE DISTRIBUTION RIGHTS TO THE AMERICAN HOSPITAL ASSOCIATION TELECONFERENCE SERIES TO PROVIDE LIVE SEMINARS TO MEDICAL SPECIALISTS AND HOSPITAL ADMINISTRATORS 9304130046 930413 FINANCING BUSINESS DETROIT EDISON CO DETROIT EDISON CO DETROIT SAID IT PLANS TO ISSUE A NEW SERIES OF PREFERRED STOCK EXPECTED TO TOTAL 50 MILLION THE UTILITY SAID PROCEEDS FROM THE OFFERING WILL BE USED FOR THE OPTIONAL REDEMPTION OF ALL OUTSTANDING SHARES OF ITS CUMULATIVE PREFERRED STOCK 932 PC SERIES 9304130045 930413 BUSINESS BRIEF CREDIT LYONNAIS SA BANK EXTENDS MGM STUDIOS 190 MILLION LINE OF CREDIT STATEOWNED FRENCH BANK CREDIT LYONNAIS SA HAS EXTENDED A THREEYEAR 190 MILLION CREDIT LINE TO METROGOLDWYNMAYER INC A MOVIE STUDIO IN WHICH IT HOLDS A 985 STAKE THE CASH INFUSION INCLUDED IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION FORMALIZES A RELATIONSHIP BEGUN MORE THAN A YEAR AGO WHEN THE BANK OUSTED ITALIAN FINANCIER GIANCARLO PARRETTI AND TOOK OVER THE STUDIO THE FILING ALSO REVEALS THAT CREDIT LYONNAIS PROVIDED MGM WITH 3352 MILLION IN FINANCING LAST YEAR CLOSE TO THE MILLION A DAY THAT HOLLYWOOD OBSERVERS HAD SAID THE BANK HAD BEEN PAYING TO PROP UP THE STUDIO MGM REPORTED A NET LOSS OF 2711 MILLION IN 1992 COMPARED WITH 3474 MILLION IN 1991 9304130044 930413 BUSINESS BRIEF STUDENT LOAN MARKETING ASSOCIATION FIRSTQUARTER NET ROSE 10 AIDED BY LOW FUNDING COSTS THE STUDENT LOAN MARKETING ASSOCIATION SAID NET INCOME ROSE 10 IN THE FIRST QUARTER HELPED BY LOW FUNDING COSTS THE FEDERALLY CHARTERED CORPORATION KNOWN AS SALLIE MAE REPORTED NET INCOME OF 1047 MILLION OR 115 A SHARE COMPARED WITH 951 MILLION OR 1 A SHARE A YEAR AGO SALLIE MAE THE NATION'S LEADING FINANCIAL INTERMEDIARY FOR STUDENT LOANS OWNS ABOUT A THIRD OF ALL GUARANTEED STUDENT LOANS TOTAL ASSETS WERE 457 BILLION DOWN FROM 462 BILLION THE YEAR BEFORE STUDENT LOANS OWNED AT THE QUARTER'S CLOSE TOTALED 246 BILLION UP FROM 225 BILLION IN 1992 GROWTH IN THE STUDENT LOAN PORTFOLIO HAS SLOWED IN RECENT QUARTERS AS SOME LENDERS HAVE DECIDED TO HOLD THE LOANS THEMSELVES IN THIS LOW RATE ENVIRONMENT THE COMPANY SAID IT REPURCHASED 17 MILLION SHARES OF COMMON STOCK DURING THE QUARTER IN LIGHT OF ITS SHARE'S PRICE DECLINE IN RECENT WEEKS THE CLINTON ADMINISTRATION THIS YEAR PROPOSED TO REPLACE THE CURRENT SYSTEM OF GUARANTEED BANKFUNDED STUDENT LOANS WITH LOANS FUNDED BY US TREASURY BORROWINGS 9304130043 930413 COMPUTERS TO FACILITATE TREASURY AUCTION BIDS WASHINGTON THE TREASURY TAKING A BIG STEP AWAY FROM THE PAPERANDPENCIL AGE SAID MOST MAJOR BIDDERS IN TREASURY AUCTIONS WILL BE ABLE TO SUBMIT BIDS BY COMPUTER BEGINNING APRIL 29 CURRENTLY LARGE BIDDERS SUBMIT BIDS ON PAPER IN MANY CASES BY USING MESSENGERS WHO GET LASTMINUTE INSTRUCTIONS FROM TELEPHONES IN THE LOBBY OF THE NEW YORK FEDERAL RESERVE BANK THE SALOMON BROTHERS TREASURY AUCTION SCANDAL FOCUSED ATTENTION ON THE AUCTION PROCESS AND LED THE TREASURY AND THE FED TO ACCELERATE PLANS TO AUTOMATE IT THE NEW TREASURY AUTOMATED ACTION PROCESSING SYSTEM WILL ALLOW PRIMARY DEALERS AND OTHER BIG BIDDERS IN THE NEW YORK CHICAGO AND SAN FRANCISCO FEDERAL RESERVE DISTRICTS TO SUBMIT LASTMINUTE BIDS BY COMPUTER THE TREASURY'S BUREAU OF PUBLIC DEBT SAID THE SYSTEM WILL BE EXTENDED TO BIDDERS IN OTHER REGIONS IN THE COMING MONTH THE TREASURY ADDED THE TREASURY LAST SUMMER BEGAN OFFERING INSTITUTIONAL INVESTORS THE OPTION OF PLACING BIDS BY COMPUTER BUT NOT AT THE LAST MINUTE ABOUT 600 INSTITUTIONAL BIDDERS ARE USING THAT SYSTEM 9304130042 930413 BUSINESS BRIEF MERCK & CO COMPANY PLANS TO EXPAND NUMBER OF GENERIC PRODUCTS MERCK & CO SAID IT WILL SOON EXPAND THE NUMBER OF GENERIC PRODUCTS AVAILABLE THROUGH ITS WEST POINT PHARMA DIVISION THE WHITEHOUSE STATION NJ PHARMACEUTICAL COMPANY SAID WEST POINT PHARMA WILL START MARKETING MORE THAN 25 DIFFERENT PACKAGES AND DOSAGES OF GENERIC VERSIONS OF 10 OFFPATENT BRANDS THE SPECIFIC PRODUCTS WILL BE ANNOUNCED AS THEY ARE INTRODUCED OVER THE NEXT FOUR MONTHS THE WEST POINT PHARMA DIVISION INTRODUCED ITS FIRST PRODUCT IN OCTOBER A GENERIC VERSION OF THE ARTHRITIS DRUG DOLOBID MERCK SAID SALES OF THAT GENERIC VERSION EXCEEDED EXPECTATIONS IN 1992 ACCOUNTING FOR ABOUT HALF OF THE DISPENSED PRESCRIPTIONS FOR THE GENERIC FORM OF THE DRUG MERCK SAID EXPANDING ITS GENERIC DRUG PRODUCT LINE WILL MEET CONSUMER INTEREST IN EFFECTIVE PRODUCTS THAT ARE COSTEFFECTIVE IT SAID REVENUE FROM THE GENERIC LINE WILL HELP SUPPORT RESEARCH AND DEVELOPMENT 9304130041 930413 SAVINGSBOND SALES FALL WITH CUT IN MINIMUM RATE WASHINGTON SALES OF US SAVINGS BONDS TUMBLED IN MARCH THE TREASURY DEPARTMENT SAID IN A SIGN THAT THE GOVERNMENT'S RECENT CUT IN THE SECURITIES' GUARANTEED MINIMUM RATE IS UNPOPULAR WITH INVESTORS TREASURY SOLD 141 BILLION OF THE SERIES EE SAVINGS BONDS LAST MONTH THE LOWEST SALES IN EIGHT MONTHS AND A 31 DROP FROM FEBRUARY WHEN THE DEPARTMENT SOLD 203 BILLION OF THE BONDS EFFECTIVE MARCH 1 THE TREASURY CUT THE MINIMUM GUARANTEED RATE ON SAVINGS BONDS TO 4 FROM 6 BONDS HELD FOR FIVE YEARS OR MORE EARN EITHER THE GUARANTEED RATE OR THE AVERAGE OF MARKETBASED RATES FOR THE PERIOD WHICHEVER IS GREATER CURRENTLY THE MARKETBASED RATE IS 504 DESPITE THE DECLINE IN THE SALE OF SAVINGS BONDS OVER THE MONTH MARCH SALES WERE 23 HIGHER THAN IN THE YEAREARLIER PERIOD WHEN 145 BILLION OF SERIES EE SAVINGS BONDS WERE SOLD THE TREASURY SAID THE VALUE OF SAVINGS BONDS HELD BY AMERICANS AT THE END OF MARCH REACHED 16362 BILLION UP FROM 14201 BILLION A YEAR EARLIER 9304130040 930413 ECONOMY CLINTON PURSUES STRATEGY TO PASS STIMULUS BILL PRESIDENT LAMBASTES GOP WHILE AIDES REACH OUT TO GAIN NEEDED VOTES BY JEFFREY H BIRNBAUM AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON ESCALATING EFFORTS TO PASS HIS ECONOMIC STIMULUS BILL IS PURSUING A TWOPRONGED STRATEGY OF BLASTING THE REPUBLICAN FILIBUSTER WHILE REACHING OUT TO INDIVIDUAL GOP MODERATES WHOSE VOTES HE NEEDS TO BREAK THE STALEMATE AFTER A WEEK OF PREOCCUPATION WITH OTHER MATTERS THE PRESIDENT HAS DECIDED TO FOCUS MUCH OF HIS ATTENTION THIS WEEK ON FIGHTING TO PASS THE STALLED 16 BILLIONPLUS PACKAGE HIS STRATEGISTS CITING NEW POLLS AND PREVIOUSLY PUBLICIZED SUPPORT FROM REPUBLICAN GOVERNORS AND MAYORS BELIEVE THEY HAVE A STRONG CHANCE TO WIN YESTERDAY MR CLINTON TOOK ADVANTAGE OF THE ANNUAL WHITE HOUSE EASTEREGG ROLL TO LAMBASTE REPUBLICANS FOR HOLDING UP A 300 MILLION CHILDHOODIMMUNIZATION PROGRAM THAT'S PART OF THE PACKAGE POINTING OUT THE WINDOW OF THE OVAL OFFICE TOWARD CHILDREN TAKING PART IN THE EVENT MR CLINTON SAID THEY ARE THE HOSTAGES OF THE SENATE FILIBUSTER THE PRESIDENT ALSO HAMMERED REPUBLICANS IN GENERAL ACCUSING THEM OF FOSTERING GRIDLOCK AND REFUSING TO DO ANYTHING ABOUT THE WEAK ECONOMY AND THE DEARTH OF JOBS A CHARACTERIZATION REPUBLICANS VIGOROUSLY DENY THIS IS ABOUT WHETHER YOU WANT TO REDUCE THE UNEMPLOYMENT RATE IN AMERICA BY ANOTHER HALF A PERCENTAGE POINT FOR A VERY MODEST AMOUNT AND THEY DON'T MR CLINTON CHARGED IN AN OVAL OFFICE CEREMONY ENCOURAGING CHILD IMMUNIZATION THEY WANT MORE PEOPLE TO STAY OUT OF WORK AS THE PRESIDENT HAS UNLEASHED HIS SHARP RHETORIC WHITE HOUSE AIDES HAVE BEGUN SPEAKING PRIVATELY BOTH FACETOFACE AND ON THE TELEPHONE WITH REPUBLICAN MODERATES WHO THEY HOPE WILL SUPPORT A SCALEDBACK VERSION OF THE BILL THOSE TARGETED INCLUDE LEADING MEMBERS OF THE SENATE APPROPRIATIONS COMMITTEE SUCH AS SENS MARK HATFIELD OF OREGON TED STEVENS OF ALASKA ALFONSE D'AMATO OF NEW YORK AND ARLEN SPECTER OF PENNSYLVANIA ANOTHER REPUBLICAN TARGET IS SEN JAMES JEFFORDS OF VERMONT WHO HAS STRONG TIES TO ORGANIZED LABOR AND IS UP FOR REELECTION IN 1994 IN THESE CONVERSATIONS WHITE HOUSE AIDES ARE SIGNALING A WILLINGNESS TO CUT SOME OF THE MORE CONTROVERSIAL ELEMENTS OF THE PACKAGE SUCH AS COMMUNITY DEVELOPMENT GRANTS AT THE SAME TIME THE AIDES HOPE TO PRESERVE ENOUGH OF THE MEASURE ESPECIALLY SOME OF ITS WIDELY POPULAR ELEMENTS SUCH AS THE IMMUNIZATION PROGRAM TO GET AT LEAST SOME VERSION OF THE BILL PASSED I KNOW THAT THERE ARE PEOPLE IN THAT REPUBLICAN SENATE BLOC THAT WANT TO VOTE FOR A GOOD STIMULUS PROGRAM I KNOW THEY DO MR CLINTON SAID AND I HOPE THEY'LL BE RELEASED TO DO IT THE 163 BILLION STIMULUS BILL WHICH HAS ALREADY PASSED THE HOUSE IS PACKAGED WITH AN ADDITIONAL 32 BILLION FOR HIGHWAY AND PUBLIC WORKS PROJECTS THOUGH REPUBLICANS MOCK THE LEGISLATION AS PORKBARREL SPENDING MUCH OF THE MONEY WOULD GO TO BROAD GRANT OR BENEFIT PROGRAMS AND IS FREE OF THE PAROCHIAL EARMARKS THAT HAVE TRADITIONALLY CHARACTERIZED JOBS BILLS IN THE PAST SEN THE CHILDHOODIMMUNIZATION PROGRAM IS A COMPARATIVELY SMALL ITEM THAT IN FACT IS SUPPORTED BY MANY REPUBLICANS SO LONG AS IT IS PAID FOR WITH LIKE SIZE CUTS REPUBLICANS SUPPORT FUNDING FOR CHILDHOOD IMMUNIZATIONS SENATE MINORITY LEADER ROBERT DOLE R KAN SAID YESTERDAY IN RESPONSE TO PRESIDENT CLINTON'S BROADSIDE WHAT PRESIDENT CLINTON SHOULD TELL THESE CHILDREN IS THAT HE WANTS TO SADDLE THEM WITH BIGGER DEFICITS INSTEAD OF PAYING FOR THIS NEW IMMUNIZATION SPENDING AND HUNDREDS OF OTHER SPENDING AND TAXING PLANS WHICH WILL ROB THEM OF THEIR FULL POTENTIAL ALTHOUGH THE REPUBLICAN LEADER GIVES NO SIGN OF WEAKENING HIS ALMOST DAILY NEWS RELEASES SHOW HIS SENSITIVITY TO THE WHITE HOUSE'S CHARGE OF PARTISAN GRIDLOCK WHETHER THE TOPIC IS RUSSIAN AID OR THE SIMPLE PASSAGE OF A DEBTCEILING BILL LAST WEEK MR DOLE HAS TAKEN CARE TO EMPHASIZE THE GOP'S WILLINGNESS TO COOPERATE AND AFTER THREE DECADES IN CONGRESS HE IS LESS COMFORTABLE WITH THE OFTEN OBSTRUCTIONIST TACTICS OF THE YOUNGER CONSERVATIVES WHO HAVE COME TO DOMINATE HIS CAUCUS THE ADMINISTRATION'S STRATEGY BOTH HERE IN WASHINGTON AND AT THE GRASSROOTS STATE LEVEL RESTS ON TRYING TO EXPLOIT THESE DIVISIONS IN THE GOP AS MUCH AS OLDLINE REPUBLICAN MODERATES SAY THEY ARE OFFENDED BY THE DEFICITFINANCING IN THE BILL MANY WANT TO BE PLAYERS ON FUTURE TAX AND HEALTH LEGISLATION AND SENIOR MEMBERS OF THE SENATE APPROPRIATIONS COMMITTEE HAVE A PERSONAL STAKE IN REACHING SOME ACCOMMODATION THAT WILL GIVE THEM MORE LEEWAY IN PROTECTING THEIR OWN SPENDING PRIORITIES IN FUTURE BILLS MR HATFIELD FOR EXAMPLE HAS COMPLAINED OF ADMINISTRATION CUTS NEXT YEAR FROM A SALMON PROGRAM IMPORTANT TO HIS PACIFIC NORTHWEST MR STEVENS LIKES THE HIGHWAY MONEY IN THE STIMULUS BILL AND COULD BE A VALUABLE MEDIATOR GIVEN HIS LONGSTANDING RELATIONSHIP WITH BOTH SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD AND SEN ERNEST HOLLINGS D SC A STAUNCH CLINTON ALLY AT THE LOCAL LEVEL DEMOCRATS HOPE TO SOW DISCORD AMONG THE REPUBLICANS BY HIGHLIGHTING AS EARLY AS TODAY A LETTER FROM REPUBLICAN MAYORS OF SUCH CITIES AS FORT WAYNE IND AND YORK PA SUPPORTING THE STIMULUS BILL THE DEMOCRATS ALSO INTEND TO PUBLICIZE A LETTER SIGNED IN FEBRUARY BY SEVERAL GOP GOVERNORS INCLUDING CARROLL CAMPBELL OF SOUTH CAROLINA AND JOHN MCKERNAN OF MAINE THAT BACKS PARTS OF THE BILL AS GENUINE JOBCREATION PROGRAMS IN THE MEANTIME CLINTON ALLIES INTEND TO BANG AWAY AT THE REPUBLICANS FOR TAKING WHAT THEY WILL CHARACTERIZE AS A DONOTHING APPROACH WHICH THEY WILL SAY IS REMINISCENT OF THE BUSH ADMINISTRATION THAT THE VOTERS REJECTED LAST NOVEMBER THEY ARE THE PARTY OF NO' SAID DEMOCRATIC STRATEGIST JAMES CARVILLE IN CONTRAST DEMOCRATS INSIST THAT BOTH PUBLIC AND PRIVATE POLL SHOW THAT THE AMERICAN PEOPLE WANT BOLD ACTION TO CREATE JOBS ACCORDING TO PAUL BEGALA MR CARVILLE'S PARTNER A RECENT NEWSWEEK POLLS SHOWED THAT AMERICANS WANT CONGRESS TO PASS THE JOBS BILL BY A 5730 MARGIN AND THE REASON SAID HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO THE ECONOMY IS NOT DOING WELL AND PEOPLE KNOW IT THE WHITE HOUSE IS USING EVERY OPPORTUNITY TO MAKE ITS CASE MR CLINTON GAVE A SPEECH TO A NEW YORK AUDIENCE VIA SATELLITE YESTERDAY AND PROMOTED THE STIMULUS PLAN DEMOCRATIC NATIONAL COMMITTEE CHAIRMAN DAVID WILHELM GAVE A RADIO INTERVIEW ON THE SUBJECT THE DNC ITSELF FAXED THOUSANDS OF BRIEFING PAPERS TO SUPPORTERS OFFERING EXAMPLES OF WAYS THE PRESIDENT'S PLAN WILL HELP AMERICA AND CABINET OFFICERS ARE FANNING OUT TO TOUT THE PLAN'S BENEFITS BY THE SAME TOKEN DEMOCRATS SUFFER FROM THEIR OWN DIVISIONS ON THE SPENDING BILL AND THE STALEMATE NOW EXPOSES MR CLINTON'S VULNERABILITY TO SOUTHERN CONSERVATIVES IN HIS PARTY MANY OF THESE SENATORS BELIEVE THEY HOLD THE BALANCE OF POWER IN CONGRESS AND ARE PRIVATELY CRITICAL OF THE WHITE HOUSE NOW FOR NOT HEEDING THEIR EARLIER OBJECTIONS TO THE BILL IN SOME CASES CONSERVATIVES SUCH AS REP PETE GEREN D TEXAS WHO OPPOSED THE STIMULUS BILL IN THE HOUSE ARE EVEN BEING PUNISHED FOR DISLOYALTY HIS OFFICE HAS BEEN DENIED TICKETS FOR GROUP TOURS OF THE WHITE HOUSE IN ADOPTING SUCH A PUGNACIOUS STYLE THE WHITE HOUSE SOUGHT TO INVOKE DISCIPLINE BUT CRITICS NOW ARGUE IT MOVED TOO FAR TO THE LEFT IN THE HOUSE TO NOW GET THE 60 VOTES IT NEEDS TO BREAK THE FILIBUSTER IN THE SENATE 9304130039 930413 BUSINESS BRIEF US FILTER CORP COMPANY TO DISCUSS BUILDING PLANT FOR CUERNAVACA MEXICO US FILTER CORP PALM DESERT CALIF SAID IT WAS SELECTED TO ENTER INTO NEGOTIATIONS TO DESIGN BUILD AND OPERATE A WASTE WATER TREATMENT PLANT FOR THE CITY OF CUERNAVACA IN MORELOS MEXICO THE PROJECT WHICH IS EXPECTED TO INCLUDE A CAPITAL EQUIPMENT INVESTMENT OF 14 MILLION BY US FILTER WILL BE ABLE TO TREAT 138 MILLION GALLONS OF WASTE WATER A DAY AND IS DESIGNED FOR A POPULATION SERVICE AREA OF ABOUT 550000 PEOPLE RICHARD J HECKMANN CHAIRMAN AND CHIEF EXECUTIVE SAID THE CONCESSION IS EXPECTED TO LAST BETWEEN 10 YEARS AND 15 YEARS AND WILL HAVE A TOTAL VALUE OF BETWEEN 30 MILLION AND 45 MILLION THE PROJECT IS SCHEDULED TO BE IN FULL OPERATION BY MAY 1994 ALSO THE COMPANY SAID IT EXPECTS TO REPORT EARNINGS OF ABOUT 45 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 VS A LOSS OF 39 MILLION A YEAR EARLIER REVENUE IS EXPECTED TO RISE TO ABOUT 100 MILLION COMPARED WITH 41 MILLION FOR THE PRIOR YEAR THE COMPANY SAID 9304130038 930413 BUSINESS BRIEF HORIZON RESOURCES CORP FERTILIZER PRODUCER EXPECTS TO REPORT 4THQUARTER LOSS HORIZON RESOURCES CORP EXPECTS TO REPORT A FISCAL 1993 FOURTHQUARTER LOSS OF BETWEEN 35 MILLION AND 45 MILLION OR AROUND 1 A SHARE COMPANY CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN WATSON SAID MR WATSON SAID IN AN INTERVIEW THAT HE BEGAN TO DISCUSS THE COMPANY'S RESULTS WITH ANALYSTS YESTERDAY IN THE WAKE OF DEPRESSED PRICES FOR POTASH FERTILIZER HORIZON'S MAIN BUSINESS HE SAID LARGE POTASH SHIPMENTS FROM RUSSIA HAVE REDUCED PRICES BY ABOUT 5 TO 10 A TON FROM 73 LAST FALL FOR THE FOURTH QUARTER ENDED MARCH 31 THE DENVERBASED COMPANY EXPECTS TO REPORT SALES OF ABOUT 65 MILLION TO 67 MILLION IN THE YEARAGO FOURTH QUARTER THE COMPANY REPORTED A LOSS OF ABOUT 19 MILLION ON SALES OF ABOUT 44 MILLION FOR THE YEAR THE COMPANY SAID IT EXPECTS SALES TO REACH ABOUT 32 MILLION TO 33 MILLION LOSSES BEFORE ANY NONCASH CHARGES WILL BE BETWEEN 55 MILLION AND 6 MILLION HE SAID 9304130037 930413 MARKETING & MEDIA LABOR GROUPS STUDY CAA ROLE AT CREDIT LYONNAIS HOLLYWOOD THREE OF THE ENTERTAINMENT INDUSTRY'S KEY LABOR ORGANIZATIONS MET WITH REPRESENTATIVES OF TALENT AGENCY CREATIVE ARTISTS AGENCY OVER CHARGES BY A RIVAL AGENCY INTERNATIONAL CREATIVE MANAGEMENT THAT CAA VIOLATED LABOR AGREEMENTS BY ADVISING CREDIT LYONNAIS SA WHICH OWNS A STAKE IN SEVERAL MOVIE PRODUCERS BUT NO IMMEDIATE ACTION WAS TAKEN AMONG ICM CHAIRMAN JEFFREY BERG'S CONCERNS THAT CAA MIGHT HAVE ACCESS TO PROPRIETARY INFORMATION ABOUT CLIENTS OF RIVAL AGENCIES AND THAT IT MIGHT INFLUENCE THE BANK'S ENTERTAINMENT PROPERTIES WHICH INCLUDE THE 985OWNED METROGOLDWYNMAYER MOVIE STUDIO TO FAVOR CAA CLIENTS IN A JOINT STATEMENT THE LABOR GROUPS SAID CAA'S REPRESENTATIVES WERE FORTHCOMING AND SUPPLIED CERTAIN INFORMATION AND ASSURANCES ABOUT CAA'S ROLE WHICH WERE HELPFUL IN REDUCING IN OUR MINDS CONCERNS EXPRESSED IN THE MEDIA OVER THE LAST FEW WEEKS THE STATEMENT WHICH SAID ANOTHER MEETING HAD BEEN SET FOR NEXT WEEK CAME FROM THE SCREEN ACTORS GUILD THE WRITERS GUILD OF AMERICA WEST AND THE DIRECTORS GUILD OF AMERICA IN A STATEMENT ICM'S MR BERG SAID THAT WHILE PLEASED THAT THE GUILDS WERE INVESTIGATING THEIR STATEMENT FAILS TO ADDRESS THE CENTRAL ISSUE IN THIS CONTROVERSY HOW CAA CAN REPRESENT A BANK WHICH OWNS 985 OF A MOTION PICTURE STUDIO WITHOUT BEING IN VIOLATION OF SCREEN ACTORS GUILD RULES 9304130036 930413 CORRECTIONS & AMPLIFICATIONS PRUDENTIAL SECURITIES INC'S ENERGYLIMITED PARTNERSHIP PROPERTIES HAVE A CURRENT VALUE OF 175 MILLION TO 450 MILLION OR MORE ACCORDING TO SOME WALL STREET TRADERS AN ARTICLE YESTERDAY INCORRECTLY ATTRIBUTED THE ESTIMATE OF THE PARTNERSHIPS' CURRENT VALUE TO PRUDENTIAL SECURITIES EXECUTIVES CRYSTAL BRANDS JEWELRY GROUP A DIVISION OF CRYSTAL BRANDS INC RESTRUCTURED ITS THREE SEPARATE MARKETING AND SALES DIVISIONS INTO A SINGLE ORGANIZATION IN YESTERDAY'S BUSINESS BRIEFS SECTION IT WAS INCORRECTLY REPORTED THAT CRYSTAL BRANDS INC WAS RESTRUCTURING ITS MARKETING AND SALES UNITS NORTHWESTERN STEEL & WIRE CO'S INITIAL OFFERING OF SEVEN MILLION COMMON SHARES WILL BE HANDLED BY LEHMAN BROTHERS AND PAINEWEBBER INC AND A CONCURRENT OFFERING OF 100 MILLION OF SENIOR NOTES DUE 2001 WILL BE HANDLED BY LEHMAN BROTHERS AND MERRILL LYNCH & CO YESTERDAY'S SEC FILINGS COLUMN INCORRECTLY SAID LEHMAN BROTHERS AND PAINEWEBBER WOULD HANDLE BOTH OFFERINGS 9304130035 930413 POLITICS & POLICY US EMISSARY GIVES PRIORITY TO ASKING VIETNAM ABOUT POWPOPULATION REPORT BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SPECIAL US EMISSARY TO VIETNAM WILL GIVE PRIORITY TO ASKING HANOI TO EXPLAIN A 1972 DOCUMENT THAT INDICATES VIETNAM MAY HAVE BEEN HOLDING MORE THAN TWICE AS MANY US PRISONERS AS IT RELEASED A YEAR LATER RICHARD BOUCHER A STATE DEPARTMENT SPOKESMAN REACTING TO REPORTS IN SEVERAL PUBLICATIONS SAID THAT GEN JOHN VESSEY AS THE FIRST ORDER OF BUSINESS WILL ASK VIETNAMESE OFFICIALS TO EXPLAIN THE DISCREPANCY PRESIDENT CLINTON DECIDED TO DISPATCH GEN VESSEY TO VIETNAM LATER THIS WEEK TO EVALUATE THE RECENT COOPERATION BY HANOI IN TRYING TO RESOLVE CASES OF US SERVICEMEN UNACCOUNTEDFOR FROM THAT CONFLICT THE DOCUMENT WHICH IS A RUSSIAN TRANSLATION OF A REPORT APPARENTLY PREPARED BY THE VIETNAMESE MILITARY FOR THE VIETNAMESE POLITBURO SEPT 15 1972 INDICATED THAT THE TOTAL NUMBER OF PRISONERS OF WAR HELD WAS 1205 THE NUMBER OF AMERICANS RETURNED IN 1973 WAS 591 WHILE NO ONE HAS RAISED QUESTIONS ABOUT THE AUTHENTICITY OF THE DOCUMENT SOME US OFFICIALS THINK THE FIGURE MAY INCLUDE NONUS SOLDIERS WHO WERE CAPTURED DURING COMBAT THE US STILL LISTS ABOUT 2200 US SOLDIERS FROM THE WAR AS UNACCOUNTED FOR BUT THE DOCUMENT RAISES THE POSSIBILITY THAT HANOI STILL MAY HAVE HAD PRISONERS AFTER 1973 ALTHOUGH IT HAS REGULARLY MAINTAINED THAT ALL WERE RELEASED THE DOCUMENT ALSO CATEGORIZED THE US PRISONERS BY RANK THEIR POSSIBLE UTILITY AND THEIR POLITICAL ATTITUDES ACCORDING TO ZBIGNIEW BRZEZINSKI A FORMER CARTER ADMINISTRATION OFFICIAL WHO SAID HE WAS SHOWN A COPY OF THE RUSSIAN REPORT IN FEBRUARY MR BOUCHER SAID THAT THE ADMINISTRATION LEARNED OF THE DOCUMENT THAT MONTH IT WAS TURNED OVER TO US OFFICIALS LAST WEEK AFTER OFFICIALS ASKED ABOUT IT DURING A MARCH SESSION OF THE USRUSSIA JOINT COMMISSION ON MIA/POW AFFAIRS MR BOUCHER ADDED THAT THE DEFENSE DEPARTMENT CURRENTLY IS ANALYZING THE DOCUMENT THE WIDESPREAD VIEW OF US OFFICIALS AND MOST MEMBERS OF A SPECIAL SENATE COMMITTEE THAT STUDIED THE ISSUE IS THAT SINCE LAST SUMMER THE VIETNAMESE AFTER TWO DECADES OF STONEWALLING HAVE BEEN COOPERATING YESTERDAY MR BOUCHER SAID THERE UNQUESTIONABLY HAS BEEN PROGRESS ON POW/MIA ACCOUNTING IN VIETNAM IN A STATEMENT RELEASED YESTERDAY SEN JOHN KERRY WHO HEADED THE SPECIAL SENATE COMMITTEE THAT PROBED THE MIA ISSUE SAID THAT THE DOCUMENT MUST BE THROUGHLY EXAMINED AND ANALYZED THE MASSACHUSETTS DEMOCRAT NOTED THAT THE TRANSLATION FROM VIETNAMESE TO RUSSIAN COULD RESULT IN POSSIBLE CONFUSION ABOUT THE NATIONALITIES OF PRISONERS HELD OTHER PERSONS FAMILIAR WITH THE MIA ISSUE SUGGESTED THAT WHILE THE DOCUMENT SPEAKS OF US PRISONERS IT MAY INCLUDE THE HUNDREDS OF SOUTH VIETNAMESE THAI AND LAOTIAN PRISONERS WHO FOUGHT ALONGSIDE THE AMERICANS SUCH A MASSIVE DISCREPANCY WOULD HAVE TO MEAN THAT A HUGE NUMBER OF US SOLDIERS WERE HELD IN ISOLATION FROM THE RELEASED US PRISONERS WHO DURING THEIR CAPTIVITY ENDEAVORED TO MEMORIZE THE NAMES AND IDENTITIES OF EVERY AMERICAN THEY ENCOUNTERED IN THE VIETNAMESE PRISON SYSTEM NEVERTHELESS THE SURFACING OF THE DOCUMENT THE SAME WEEK THAT GEN VESSEY IS SET TO LEAVE ON HIS MISSION WILL PROVIDE AMMUNITION TO THOSE WHO CONTINUE TO OPPOSE STEPS TOWARD NORMALIZING RELATIONS WITH VIETNAM PRESIDENT CLINTON HAS SAID HE WON'T LIFT THE 18YEAROLD ECONOMIC BOYCOTT OF VIETNAM UNTIL THERE IS A SATISFACTORY RESOLUTION OF THE ISSUE 9304130034 930413 TRAVEL GURU SELLS MAPS TO FREQUENTTRAVEL MAZE BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL MOST AIRLINE PASSENGERS HAVE NEVER HEARD OF RANDY PETERSEN BUT HE MAY BE THE MOST INFLUENTIAL FREQUENT FLIER IN AMERICA SEVEN YEARS AGO WHEN FREQUENTTRAVEL PROGRAMS WERE STILL IN THEIR INFANCY MR PETERSEN STARTED AN INFORMATIONSERVICE BUSINESS EXPLAINING THE INTRICACIES OF SEGMENT AWARDS AND BONUS UPGRADES HE PRODUCES A MONTHLY MAGAZINE ON THE SUBJECT SERVES AS A PAID CONSULTANT TO COMPANIES ON RECLAIMING MILES FROM EMPLOYEES AND IS A POPULAR SPEAKER AT EVERYTHING FROM TRAVEL CONVENTIONS TO ROTARY CLUBS AS THE OWNER OF FLIGHTPLAN INC BASED IN COLORADO SPRINGS COLO MR PETERSEN HAS RIDDEN A FREQUENTFLIER MARKETING WAVE AS PROGRAMS HAVE PROLIFERATED THROUGHOUT THE SERVICE INDUSTRY THE HARDDRIVING ENTREPRENEUR SAYS HE EARNS ABOUT 1 MILLION A YEAR HELPING COMPANIES AND INDIVIDUALS PURCHASE MILES TRANSFER FREE TICKETS AND READ THE FINE PRINT I'M RECESSION PROOF HE CONTENDS AND ALWAYS IN DEMAND HE APPEARS REGULARLY ON TELEVISION AND RADIO AND IS CONSTANTLY QUOTED BY THE PRINT MEDIA AS AMERICA'S HIGH PRIEST OF FREQUENTTRAVEL PROGRAMS THE 39YEAROLD MR PETERSEN CARRIES THE SAME KIND OF CLOUT AS A BROADWAY THEATER CRITIC FOR EXAMPLE HE CRITICIZED CONTINENTAL AIRLINES LAST YEAR FOR REQUIRING 35000 MILEAGE CREDITS FOR A FREE TICKET ON TRIPS THAT DON'T INCLUDE SATURDAY NIGHT STAYS CONTINENTAL SOON CHANGED ITS POLICY TO 20000 CREDITS THE LEVEL REQUIRED BY MOST AIRLINES USAIR LOWERED ITS MILEAGE REQUIREMENTS ON INTERNATIONAL FLIGHTS LAST YEAR AFTER ONE OF MR PETERSEN'S EDITORIALS CONTINENTAL A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC SAYS THAT MR PETERSEN'S COMMENTS SPURRED THE CHANGE IN ITS REQUIREMENTS DANIEL BROCK VICE PRESIDENT OF MARKETING SERVICES FOR USAIR A UNIT OF USAIR GROUP INC SAYS HIS CARRIER WAS ALREADY CONSIDERING ITS MOVE BUT HE ADDS IF YOU'RE CONTEMPLATING MAKING A CHANGE IN YOUR PROGRAM THE LAST STEP IS TO CALL RANDY AND MAKE SURE YOU HAVEN'T MISSED ANYTHING MR PETERSEN IS NO RALPH NADER IN FACT HE WORKS WITH THE TRAVEL INDUSTRY AS MUCH AS AGAINST IT HE INFORMALLY ADVISES AIRLINES HOTELS CARRENTAL COMPANIES AND CREDITCARD CONCERNS ABOUT IMPROVING THEIR PROGRAMS IN A RECENT WHIRLWIND WEEK HE VISITED AMERICAN EXPRESS CO'S AD AGENCY OGILVY & MATHER IN NEW YORK FLEW TO LONDON TO CONSULT A TRAVELMANAGEMENT CONCERN THEN DASHED TO BANGKOK WHERE THAI AIRWAYS WANTED TO PICK HIS BRAIN HE DOESN'T CHARGE FOR THIS KIND OF ADVICE BUT HE DOES GATHER TIPS ABOUT THE ARCANE DETAILS OF FREQUENTTRAVEL PROGRAMS WHICH HE THEN DROPS INTO HIS MAGAZINE INSIDE FLYER THE MAGAZINE HAS 72000 SUBSCRIBERS AT 33 A YEAR IN ONE RECENT EDITION READERS DISCOVERED THAT FREQUENT FLIERS ON NORTHWEST COULD EARN 110 BONUS MILES BY ORDERING THE SILVER BUTTER KNIFE STEAK AT MURRAY'S IN MINNEAPOLIS AND FOUR EXTRA POINTS FOR GETTING THE CEASAR SALAD TRAVEL COMPANIES MEANWHILE USE MR PETERSEN TO DISCOVER THE INS AND OUTS OF THEIR RIVALS' PROGRAMS IF WE HAVE A QUESTION ABOUT WHY AMERICAN DID SOMETHING WE'LL ASK RANDY ABOUT IT SAYS RICK BOUBELIK WORLDPERKS PROGRAM MANAGER FOR NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC SOME AIRLINE EXECUTIVES RESENT MR PETERSEN'S ORACLELIKE STATUS BUT SAY THEY HAVE TO RETURN HIS CALLS BECAUSE HE IS THE NEWS MEDIA'S PRINCIPAL SOURCE OF INFORMATION ABOUT THEIR FREQUENTFLIER PROGRAMS THESE EXECUTIVES ALSO SAY THAT MR PETERSEN SOMETIMES MISINTERPRETS THE REASONS AN AIRLINE CHANGED SOME FEATURE OF ITS PROGRAM AND THAT HIS SINGULAR OBSESSION WITH MILES CAUSES HIM TO MISS BROADER INDUSTRY TRENDS CONSUMER ADVOCATES ALSO FAULT MR PETERSEN FOR NOT BEING TOUGHER ON THE AIRLINES AND FAILING TO DISTINGUISH WHICH PROGRAMS ARE BEST OR WORST READERS OF INSIDE FLYER DO RANK THE PROGRAMS CONTINENTAL AIRLINES HAS WON SEVERAL YEARS IN A ROW MR PETERSEN SAYS HIS NARROW FOCUS ON MILES IS WHY HE HAS BEEN SUCCESSFUL AND HE BRUSHES ASIDE CRITICISM HE'S TOO SOFT IT'S HARD TO CRITICIZE A COMPANY THAT'S GIVING AWAY SOMETHING HE SAYS MR PETERSEN HAS TAKEN LIBERTIES AS A JOURNALIST A RECENT COVER STORY OF INSIDE FLYER EFFUSIVELY PRAISED A NEW PRODUCT CALLED AWARDEXTENDER WHICH FOR 159 A YEAR INSURES MILEAGE CREDITS AGAINST EXPIRATION ONLY AT THE END DEEP INSIDE THE MAGAZINE DID MR PETERSEN DISCLOSE THAT AWARDEXTENDER IS SOLD BY A COMPANY HE OWNS HE NOW CONCEDES THE WARNING SHOULD HAVE BEEN AT THE BEGINNING MR PETERSEN DOES HAVE A KNACK FOR FINDING CREATIVE BUSINESS NICHES THOUGH WHEN HE WAS A STUDENT AT THE UNIVERSITY OF NEVADA AT LAS VEGAS REFRIGERATORS WERE BANNED IN DORM ROOMS SO MR PETERSEN BOUGHT A BIG ONE FOR 25 STUCK IT IN THE DORM'S BASEMENT PUT A PADLOCK ON THE DOOR AND RENTED KEYS FOR 15 A SEMESTER HE CAME TO HIS CURRENT CAREER QUITE BY ACCIDENT AS A MENSWEAR MARKETING EXECUTIVE IN THE MID1980S HE HELPED COLLEAGUES DECIPHER THEIR FREQUENTTRAVEL PROGRAMS ONE DAY MY BOSS DROPPED SOME PAPERS ON MY DESK AND ASKED ABOUT THE MARRIOTT AWARDS MR PETERSEN RECALLS A LIGHT BULB SUDDENLY WENT OFF A LOT OF PEOPLE DON'T UNDERSTAND THESE PROGRAMS NOW HIS COMPANY TAKES IN ABOUT 8 MILLION IN REVENUE A YEAR A FRIENDLY EARNEST SORT WITH A LANKY FRAME AND A MANE OF BLOND HAIR MR PETERSEN IS PRAISED FOR HIS DILIGENCE ACCURACY AND A WORK ETHIC THAT BORDERS ON OBSESSION HE RARELY TAKES A DAY OFF AND OCCASIONALLY SLEEPS IN AN INFLATABLE BED IN HIS COMPANY'S TWOSTORY HEADQUARTERS IN COLORADO SPRINGS COLO HIS STAFF TRACKS 57 FREQUENTTRAVEL PROGRAMS AND HIS OFFICE RECEIVES 10 DAILY NEWSPAPERS AND 50 TRADE PUBLICATIONS I'D RATHER READ A NEWSLETTER THAN A MYSTERY MR PETERSEN SAYS HE LIVES WITH HIS FATHER AND IS SOMETHING OF A LONER TRAVELING BY HIMSELF 40 WEEKS A YEAR AND SOMETIMES TAKING OFF FOR EUROPE WITH NO PLAN IN MIND STRANGERS WARM UP TO HIM HE SAYS WHEN THEY DISCOVER HIS LINE OF WORK YOU MENTION FREQUENT FLIER AND YOU'VE GOT A FRIEND FOR LIFE MR PETERSEN ACCUMULATES POINTS IN 27 PROGRAMS AND ONCE WALKED OUT OF A HILTON HOTEL IN SEATTLE BECAUSE IT DIDN'T HAVE A FREQUENTSTAY PLAN HE SAYS HE HAS MORE THAN FIVE MILLION AIRLINE MILES IN HIS ACCOUNTS BUT ODDLY HE HAS NEVER CASHED ANY IN FOR A FREE FLIGHT INSTEAD HE SIMPLY COLLECTS THE CREDITS LIKE COINS MR PETERSEN TURNS DOWN FEES FOR SPEAKING ENGAGEMENTS AND OFTEN REFUSES REIMBURSEMENTS FOR TRAVEL EXPENSES LAST YEAR FOR EXAMPLE HOLIDAY INNS INC INVITED MR PETERSEN TO ATLANTA TO TALK TO EXECUTIVES ABOUT THEIR FREQUENTSTAY PROGRAM AND MR PETERSEN INSISTED ON PAYING FOR HIS HOLIDAY INN ROOM FREE ROOMS IT TURNS OUT CANNOT BE COUNTED TOWARD FREQUENTSTAY CREDITS AND MR PETERSEN IS SINGLEMINDED ABOUT ADDING TO HIS ACCOUNTS EVEN IF IT COSTS HIM MONEY A POINT'S A POINT HE SAYS 9304130033 930413 BUSINESS BRIEFS INDEPENDENT BANK CORP AGREED TO ACQUIRE PIONEER BANK OF NORTH BRANCH MICH FROM 1889 BANCORP INC EAST LANSING MICH TERMS WEREN'T DISCLOSED INTERNATIONAL BUSINESS MACHINES CORP ACQUIRED CATAPULT INC A PROVIDER OF SOFTWARE TRAINING FOR PERSONAL COMPUTER USERS TERMS WEREN'T DISCLOSED COMPUCHECK INC A CHECK GUARANTEE FIRM CANCELED CONTRACTS WITH 35 COMPANIES AND PLANNED TO CLOSE ITS COLLECTIONS SUBSIDIARY ARTRA GROUP INC SIGNED A LETTER OF INTENT TO SELL ITS BAGCRAFT CORP OF AMERICA UNIT TO RICHLAND GORDON & CO FOR 55 MILLION CASH AND A 1 MILLION NOTE CENTURY TELEPHONE ENTERPRISES INC COMPLETED THE ACQUISITION OF SAN MARCOS TELEPHONE CO AND ITS SM TELECORP INC AFFILIATE FOR CASH AND STOCK VALUED AT ABOUT 83 MILLION ECOGEN INC LICENSED A MICROORGANISM STRAIN FROM THE US AGRICULTURE DEPARTMENT TO CONTROL POSTHARVEST ROT IN FRUITS AND VEGETABLES KIRSCHNER MEDICAL CORP COMPLETED NEGOTIATIONS WITH TULANE UNIVERSITY FOR AN EXCLUSIVE WORLDWIDE LICENSE TO MAKE AND SELL A PATENTED HIP JOINT REPLACEMENT SYSTEM DESIGNED BY UNIVERSITY SCIENTISTS 9304130032 930413 WHO'S NEWS ZEOS INTERNATIONAL LTD ZEOS INTERNATIONAL LTD MINNEAPOLIS KENNETH F GUDORF 54YEAROLD VICE CHAIRMAN OF GAGE MARKETING GROUP OF MINNEAPOLIS WAS ELECTED A DIRECTOR OF THIS PERSONALCOMPUTER MAKER EXPANDING THE BOARD TO FOUR MEMBERS 9304130031 930413 HUSBANDS IN LIMBO AS MORE MEN BECOME TRAILING SPOUSES' FIRMS HELP THEM COPE MANY ARE UNABLE TO FIND JOB WHEN WIFE IS RELOCATED SOME PAY PSYCHIC TOLL WHO'S THE BOSS AT HOME' BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL RICHARD ATKINS GAVE UP HIS 70000AYEAR POST AS NEW YORK CITY'S DEPUTY HEALTH COMMISSIONER LAST SUMMER WHEN HIS WIFE CYNTHIA SAMUELS A TELEVISION EXECUTIVE WAS TRANSFERRED TO LOS ANGELES UNABLE TO FIND A NEW JOB AFTER THEY MOVED DR ATKINS IS FRETTING ABOUT THE CHANGE IN THEIR MARRIAGE NOW HE HAS TO ASK HIS WIFE FOR GROCERY MONEY IT'S A VERY STRANGE UNUSUAL EXPERIENCE HE SAYS LIKE DR ATKINS MANY AMERICAN MEN FEEL TORN BETWEEN TRADITIONAL SOCIAL VALUES AND SOME DEMANDS OF MODERN LIFE BUT FEW ARE TORN MORE BRUTALLY THAN THOSE WHO ARE FOLLOWING THEIR WIVES AS THE WOMEN ASCEND THE MANAGERIAL LADDER AND THE NUMBERS OF SUCH MEN ARE GROWING RAPIDLY WOMEN ACCOUNTED FOR ABOUT 18 OF CORPORATE MOVES IN 1992 UP FROM 5 IN 1980 THE EMPLOYEE RELOCATION COUNCIL SAYS BY THE YEAR 2000 SOME EXPERTS SAY A THIRD OF TRANSFEREES WILL BE FEMALE AND ONE IN FOUR TRAILING SPOUSES MAY BE MEN UP FROM 15 IN 1990 AND ABOUT 7 IN 1985 AS THE NUMBERS OF TRAILING HUSBANDS INCREASE MORE AND MORE MEN EVEN THOSE ACCUSTOMED TO A WIFE WITH A SUCCESSFUL CAREER ARE FINDING THEMSELVES CAUGHT IN AN AWKWARD SEXROLE REVERSAL THE STRAIN TENDS TO INTENSIFY WHEN A RELOCATED HUSBAND CAN'T FIND A NEW JOB AND MUST DEPEND ON HIS WIFE'S PAYCHECK IN THE CURRENT UNEMPLOYMENTPLAGUED ECONOMY A TRAILING HUSBAND TYPICALLY HAS A HARDER TIME FINDING WORK THAN A TRAILING WIFE DOES HE USUALLY IS LOOKING FOR A RELATIVELY HIGHPAYING JOB AND MANY TRADITIONALLY MALE JOBS WHETHER BLUECOLLAR FACTORY WORK OR WHITECOLLAR MIDDLEMANAGEMENT POSITIONS ARE HARDER TO FIND AND LESS PORTABLE THAN MANY TRADITIONALLY FEMALE JOBS SUCH AS NURSING AND CLERKING THE STRESS CAN TURN A DUALCAREER COUPLE INTO A DUELING CAREER COUPLE MARGARET GRAHAM A 43YEAROLD COMPENSATION MANAGER IN RALEIGH NC SAYS HER MARRIAGE BROKE UP LAST YEAR LARGELY BECAUSE HER SALESMAN HUSBAND NEVER FOUND STEADY WORK AFTER FOLLOWING HER FROM BATON ROUGE LA IN 1988 TO ENABLE HER TO ACCEPT A BETTERPAYING JOB AFTER SEVERAL YEARS OF SUPPORTING HIM I DECIDED I DIDN'T WANT ANY MORE OF THAT MS GRAHAM EXPLAINS IT IS PROBABLY EASIER TO STICK TO THE OLD TRADITION OF HAVING THE WIFE FOLLOW THE HUSBAND SOME COMPANIES ARE UPSET TOO THEY WORRY THAT THEY WILL LOSE PRIZED FASTTRACK WOMEN EMPLOYEES IF CAREERMINDED HUSBANDS BALK AT TRANSFERS AT MOBIL CORP FEMALE MANAGERS OFTEN RESIGN FOR FEAR THAT THEIR HUSBANDS WON'T GO ALONG WITH A MOVE MOBIL FINDS THAT A MAN GENERALLY WILL FOLLOW HIS WIFE ONLY IF SHE EARNS AT LEAST 25 TO 40 A YEAR MORE THAN HE DOES SOCIETY'S NEGATIVE ATTITUDES TOWARD TRAILING HUSBANDS JUST HAVEN'T CHANGED THAT MUCH OVER THE PAST 10 YEARS SAYS DEREK HARVEY A MOBIL HUMANRESOURCES EXECUTIVE SOME MEN OF COURSE RELOCATE EASILY FOR THEIR WIVES' CAREERS A FEW BECOME HOUSEHUSBANDS STEVE THOMAS QUIT HIS JOB MANAGING A RESTAURANT SHORTLY AFTER HIS DAUGHTER WAS BORN IN MAY 1989 THIRTEEN MONTHS LATER HIS WIFE THERESE A DERMATOLOGIST MOVED THE FAMILY FROM ALBUQUERQUE TO WORK IN FLAGSTAFF ARIZ NOW MR THOMAS TAKES CARE OF THEIR YEAROLD SON AS WELL IT'S IMPORTANT THAT A PARENT BE AT HOME WITH A CHILD FOR AT LEAST TWO YEARS HE SAYS BUT AFTER MOVING THREE TIMES FOR HIS WIFE'S JOB HE ADMITS I HAVE NEVER BEEN ABLE TO REMAIN IN ONE POSITION LONG ENOUGH TO FIND OUT HOW SUCCESSFUL I MIGHT BE IN MY CAREER THE TRAILINGHUSBAND PROBLEM IS PUSHING COMPANIES TO REVAMP THEIR HELP FOR ALL SUCH SPOUSES OR ACCOMPANYING PARTNERS AS THEY ARE ALSO CALLED THE ISSUE CAME ALIVE FOR EMPLOYERS ONLY WHEN THIS BECAME REAL FOR MEN SAYS ARLENE JOHNSON VICE PRESIDENT OF FAMILIES & WORK INSTITUTE A NEW YORK RESEARCH GROUP AS COMPANIES GET SERIOUS ABOUT MOVING UP WOMEN THEY'VE GOT TO GET SERIOUS ABOUT THE TRAILINGHUSBAND ISSUE ABOUT HALF OF US COMPANIES NOW HELP RELOCATED MATES FIND JOBS USUALLY INFORMALLY UP FROM A THIRD IN 1986 THE RELOCATION COUNCIL SAYS A COMMON INFORMAL APPROACH HAS BEEN FOR EMPLOYERS TO TRY TO HIRE SPOUSES THEMSELVES OR TO SEEK JOB LEADS FROM RIVALS AND SUPPLIERS THE NUMBER OF THOSE WITH FORMAL PROGRAMS SUCH AS INDIVIDUALIZED CAREER COUNSELING HAS GROWN TO ABOUT 20 FROM 5 IN 1987 ESTIMATES RELOCATION CONSULTANTS RUNZHEIMER INTERNATIONAL IMPACT GROUP A ST LOUIS SPOUSECOUNSELING FIRM WITH SPECIAL SERVICES FOR TRAILING HUSBANDS SAYS ITS LIST OF CORPORATE CLIENTS HAS SOARED TO 71 FROM 12 IN 1989 SUCH FIRMS HAVE THEIR WORK CUT OUT FOR THEM MANY MEN SUFFER FOR MONTHS OVER THE DOUBLE WHAMMY OF SEXROLE CONFLICTS AND EXTENDED UNEMPLOYMENT TRADING PLACES WAS HARD ON ME ADMITS ATES YEGEN A 40YEAROLD PRINTINGPLANT MANAGER HE FOLLOWED HIS WIFE UMIT TO RANDOLPH NJ FROM NEWTOWN CONN LATE LAST FALL AFTER SHE JOINED CIBAGEIGY CORP AS A MEDICAL RESEARCHER THE MOVE MADE ECONOMIC SENSE HE LEFT A 45000AYEAR JOB THAT HE DISLIKED WHILE HER PAY ROSE MORE THAN 25000 TO 105000 CIBAGEIGY PAID 1500 FOR MR YEGEN TO RECEIVE 10 HOURS OF JOB COUNSELING FROM MINSUK MACKLIN STEIN & ASSOCIATES THOUGH THE PRINCETON JUNCTION NJ OUTPLACEMENT FIRM REVAMPED HIS RESUME HE HAD TROUBLE FINDING A NEW JOB I ALWAYS LOOKED UPON MYSELF AS THE MAN AND THE PROVIDER MR YEGEN SAYS BUT AS AN UNEMPLOYED HUSBAND YOU ARE LOSING THE POWER YOU ARE LOSING CONTROL HE SAYS SEVERAL MALE FRIENDS WERE AGHAST THAT HE RELOCATED FOR HIS WIFE'S JOB THEY SAID HOW CAN YOU DO THAT THAT'S REALLY A QUESTION OF BEING MAN OR NOT' HE RECALLS HE HIMSELF RESISTED THE IDEA AT FIRST BECAUSE FOLLOWING HER FELT LIKE LOSING PART OF BEING A MAN AND WHEN HE APPLIED FOR A JOB WITH AN EAST RUTHERFORD PRINT SHOP THE OWNER ASKED WHY HE HAD MOVED I SAID MY WIFE GOT A JOB HERE' MR YEGEN RECALLS HE SAID WHO'S THE BOSS AT HOME' SMILING SHEEPISHLY MR YEGEN SAYS HE REPLIED SHE'S THE BOSS HE DIDN'T GET A JOB OFFER STAYING HOME CARING FOR TWO SCHOOLAGE YOUNGSTERS COOKING AND CLEANING HOUSE HE BEGAN EATING TOO MUCH AND SLIDING INTO A DEEPER DEPRESSION HE SAYS HE RECALLS THAT WHEN HE FETCHED HIS DAUGHTER A FIRST GRADER AT HER NEW SCHOOL I WAS THE ONLY MAN AMONG 30 MOTHERS THEY LOOKED AT ME IN A STRANGE WAY HIS WORRIED WIFE OFTEN CALLED HIM SEVERAL TIMES A DAY FROM WORK IT WAS A WHOLE SECOND JOB TO BRING HIM UP TO FEELING BETTER ABOUT HIMSELF SAYS DR YEGEN A 37YEAROLD PHYSICIAN MEN FEEL LIKE THEY'RE DEFINED BY THEIR JOBS TWO WEEKS AGO MR YEGEN FINALLY RESUMED WORKING FULL TIME AS A 45000AYEAR PRODUCTION MANAGER AT A UNION CITY PRINTING COMPANY THE COUPLE'S DIFFICULTIES AREN'T UNUSUAL WORRIED ABOUT A ROLE SWITCH AND ECONOMIC DISLOCATION MEN ARE MUCH LESS LIKELY TO LEAVE THE OLD LOCATION AND FOLLOW THEIR WIVES WITHOUT LINING UP A NEW JOB FIRST SAYS MARJORIE SHORROCK PRESIDENT OF RESOURCE CAREERS A CLEVELAND SPOUSECOUNSELING FIRM BUT SAYS JOANNE WALDMAN AN IMPACT GROUP COUNSELOR REMAINING FAR AWAY FROM THE NEW LOCALITY HINDERS YOUR JOB SEARCH THE DEEP ANXIETY THAT CAN DELAY A TRAILING HUSBAND'S MOVE AND REEMPLOYMENT IS EVIDENT AS SEVEN MEN MEET IN MANHATTAN CARE THE INTERNATIONAL RELIEF AGENCY THAT EMPLOYS THEIR WIVES HAS BROUGHT THEM TOGETHER TO TELL THEM MORE ABOUT ITS PLAN TO MOVE ITS HEADQUARTERS FROM NEW YORK TO ATLANTA IN AUGUST THE IDEA OF GOING THROUGH A FORMAL JOB SEARCH IN A NEW COMMUNITY IS REALLY DAUNTING FRETS ALAN BREMER A CORPORATE VIDEO PRODUCER I HAVE BEEN WITH THE SAME COMPANY FOR 13 YEARS AM I GOING TO BE ABLE TO FIND ANOTHER JOB ARTHUR GOLDSTEIN A SCHOOL ADMINISTRATOR SADLY AGREES I CAN'T LIVE IN AN UNCERTAIN WORLD LIKE THAT CARE IS OFFERING FORMAL JOBHUNTING SUPPORT TO SPOUSES ONCE THEY AGREE TO MOVE BUT MR GOLDSTEIN ISN'T SATISFIED THE SUPPORT HAS TO COME SOONER HE INSISTS BECAUSE UPROOTING IS A MAJOR UPHEAVAL ESPECIALLY IN THIS ECONOMY INCREASINGLY EMPLOYERS ARE GOING TO GREAT LENGTHS FOR A TRAILING HUSBAND TO RETAIN A FEMALE TRANSFEREE AND HELP SAVE HER MARRIAGE TWO YEARS AGO JAMES AND MARY NURRE AND THEIR TWO TODDLERS MOVED FROM MARSHALLTOWN IOWA WHEN MONSANTO CO PROMOTED MRS NURRE TO A HIGHERLEVEL ACCOUNTING POSITION AT ITS ST LOUIS HEADQUARTERS MR NURRE LEFT HIS 25000 POST WITH THE IOWA AUDITOR'S OFFICE MR NURRE SAYS MONSANTO PROVIDED 1000 FOR HIS JOB SEARCH IN ST LOUIS HE USED THE MONEY TO PREPARE AND MAIL SEVERAL HUNDRED COPIES OF HIS RESUME BUT BETWEEN MAY AND NOVEMBER 1991 THE 37YEAROLD ACCOUNTANT SAYS I ENDED UP ONLY GETTING THREE INTERVIEWS HIS JOBLESSNESS CREATED MARITAL AND ECONOMIC STRAINS HE SAYS AND THE NURRES CONSIDERED RETURNING TO THE DES MOINES AREA MR NURRE COMPLAINS THAT MONSANTO DIDN'T GET SERIOUS ABOUT HELPING HIM UNTIL THEY REALIZED THEY WERE RUNNING A STRONG RISK OF LOSING MY WIFE BY SPRING 1992 MRS NURRE'S COMPLAINTS PERSUADED MONSANTO TO EXPLORE INTERNAL JOB POSSIBILITIES AND HIRE IMPACT GROUP TO HELP HIM SEEK WORK LOCALLY MONSANTO OFFICIALS AND MR NURRE SAY BUT LAST JULY HE GOT AN ACCOUNTING MANAGER'S JOB WITH A LARGE MAKER OF VEGETABLE OILS AND LIVESTOCK FEED IN OMAHA THE NURRES' MARRIAGE NEARLY BROKE UP MR NURRE SAYS HE ASKED HIS WIFE TO QUIT MONSANTO AND FOLLOW HIM TO OMAHA BECAUSE SHE HAD A MARKETABLE RESUME SHE SAYS SHE REFUSED BECAUSE SHE HAD JUST WON ANOTHER PROMOTION AND A 7000 RAISE TO 45000 IN ST LOUIS IT WAS HARD SAYS MRS NURRE WHO IS 28 WE HAD TO DECIDE IS ONE CAREER MORE IMPORTANT THAN SOMEONE ELSE'S OR IS SOMEONE ELSE'S CAREER MORE IMPORTANT THAN THE MARRIAGE LAST NOVEMBER MR NURRE MOVED BACK TO ST LOUIS HE SAYS HE ULTIMATELY LEFT THE OMAHA FIRM BECAUSE JOB CUTS WERE LOOMING THERE MRS NURRE'S BOSSES THEN AGREED TO PAY IMPACT GROUP ANOTHER 800 TO GIVE MR NURRE MORE CUSTOMIZED ASSISTANCE TO ATTRACT THESE SUPER PROFESSIONAL WOMEN WE ARE GOING TO HAVE TO MEET DEMANDS TO BETTER HELP THEIR HUSBANDS SAYS VALENTINO MARTINEZ MONSANTO'S MANAGER OF PROFESSIONAL STAFFING MR MARTINEZ ADDS AS SLOWLY AS WE RESPONDED WE WORKED OUT THEIR SITUATION ON MARCH 1 MR NURRE BEGAN A 30000AYEAR JOB AT WETTERAU INC A LOCALLY BASED FOOD WHOLESALER OTHER EMPLOYERS ALSO ARE TRYING HARDER TO HELP TRAILING SPOUSES AMERITECH CORP EASES A WORKING SPOUSE'S TRANSITION BY GIVING A TRANSFERRED EMPLOYEE UP TO 1000 A MONTH SO THAT HE OR SHE CAN COMMUTE LONG DISTANCE FOR A YEAR AT SPRINT CORP TIMOTHY STOCKWELL DIRECTOR OF RELOCATION MANAGEMENT ANTICIPATES GREATER PRESSURE TO DO A WHOLE HOST OF THINGS FOR TRAILING SPOUSES AS MORE AND MORE OF THEM ARE MEN THE WESTWOOD KAN TELECOMMUNICATIONS CONCERN ALREADY SPENDS UP TO 4000 TO REPLACE A RELOCATED SPOUSE'S LOST INCOME FOR 60 DAYS THAT HELPS TRANSFEREES RETURN TO FULL PRODUCTIVITY IN AN AVERAGE OF ABOUT THREE MONTHS AFTER THE MOVE IT HAD TAKEN SIX NOW MR STOCKWELL SAYS SPRINT IS DOING MORE TO HIRE SPOUSES ITSELF MARRIOTT CORP IS TRYING TO MAKE THAT INTERNAL PLACEMENT TASK EASIER LAST MONTH IT INSTALLED A COMPUTERIZED JOBPOSTING SYSTEM THAT TRACKS ITS MANAGERIAL VACANCIES NATIONWIDE BOTH EMPLOYEES AND TRAILING SPOUSES CAN APPLY FOR THE OPENINGS AMERICAN TELEPHONE & TELEGRAPH CO SET UP FOUR US OUTPLACEMENT FACILITIES IN 1989 TO HANDLE WIDESPREAD DOWNSIZING AND LAST JUNE BEGAN A FORMAL POLICY OF INVITING TRAILING SPOUSES TO USE THE FOUR RESOURCE CENTERS TOO EACH PERSON GETS A JOB COUNSELOR PLUS MANY OPENENDED SERVICES INCLUDING COMPUTERIZED JOB BANKS SECRETARIAL SUPPORT A REFERENCE LIBRARY AND AN OFFICELIKE SETTING TO COME TO EVERY WEEKDAY TWO MORE RESOURCE CENTERS OPENED IN JANUARY ALSO ASSIST TRAILING SPOUSES THAT JOBAID PACKAGE PLAYED A BIG PART IN DECIDING TO RELOCATE SAYS KEVIN CROWE WHO RESIGNED AS A GENERAL MANAGER FOR A CHICAGO METALSTAMPING COMPANY LAST FALL TWO MONTHS AFTER AT&T TRANSFERRED HIS WIFE A DISTRICT MANAGER TO LIBERTY CORNERS NJ THE 38YEAROLD MR CROWE HAD NEVER PREPARED A RESUME BEFORE AND HE SAYS FEARED MOVING INTO THE UNKNOWN THE OUTPLACEMENT FACILITY HE ADDS LESSENS HIS SENSE OF DESPERATION ABOUT BEING JOBLESS AND HELPS ME UPHOLD A PROFESSIONAL IMAGE 9304130030 930413 GEPHARDT SEES RUSSIA NEEDING PROLONGED AID HOUSE LEADER PREDICTS US WILL HAVE TO PROVIDE UP TO 2 BILLION A YEAR BY ALBERT R HUNT AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON HOUSE MAJORITY LEADER RICHARD GEPHARDT PREDICTED THAT THE US WILL HAVE TO PROVIDE AT LEAST 1 BILLION TO 2 BILLION ANNUALLY IN AID TO RUSSIA FOR YEARS TO COME AND THAT SOME OF IT WILL HAVE TO BE FUNDED BY SHAVING ASSISTANCE TO ISRAEL AND EGYPT THE MISSOURI DEMOCRAT JUST RETURNED FROM A SIXDAY TRIP TO RUSSIA AND UKRAINE WITH A BIPARTISAN GROUP OF 15 HOUSE MEMBERS INCLUDING A NUMBER OF TOP LEADERS REP GEPHARDT SAID HE CAME BACK STRUCK BY THE ENORMOUS PROBLEMS IN RUSSIA BUT ALSO AWED BY WHAT IS TAKING PLACE THE TRANSFORMATION THAT'S GOING ON CANNOT BE OVERSTATED REVOLUTION IS THE ONLY WORD THAT I CAN THINK EVEN APPROACHES DESCRIBING WHAT'S HAPPENING THE HOUSE REPUBLICAN WHIP NEWT GINGRICH OF GEORGIA ALSO WENT ON THE TRIP AND CONCURRED WITH MOST OF THE SENTIMENTS OF HIS USUAL POLITICAL ADVERSARY THE CHANGES THAT ARE TAKING PLACE ARE MINDBLOWING HE SAID REP GINGRICH HAS PROMISED TO HELP PRESIDENT CLINTON AND THE DEMOCRATIC CONGRESSIONAL LEADERS PASS A RUSSIANAID BILL BUT EVEN WITH THE BIPARTISAN BACKING OF CONGRESSIONAL LEADERS IT WILL TAKE A VERY VERY BIG SELLING JOB TO GET IT THROUGH CONGRESS PARTICULARLY IF SOME OF THE MONEY HAS TO COME OUT OF AID TO ISRAEL AND EGYPT REP GEPHARDT AT A LUNCH WITH REPORTERS ALSO SAID THE BEST GUESS IS THAT THE APRIL 25 REFERENDUM CALLED BY PRESIDENT BORIS YELTSIN WILL PRODUCE A MIXED RESULT WITH A MAJORITY OF VOTERS SUPPORTING MR YELTSIN WHILE SIDING AGAINST HIS ECONOMIC REFORMS THE DEMOCRATIC LAWMAKER SAID MR YELTSIN TOLD THE HOUSE MEMBERS THAT IF HE LOSES THE APRIL 25 REFERENDUM HE WOULD DEFINITELY QUIT REP GEPHARDT WARNED IF THAT HAPPENS REFORM IS IN GREAT DIFFICULTY IF PRESIDENT YELTSIN FAILS THE CONGRESSIONAL LEADERS WERE TOLD THE MOST LIKELY COURSE ISN'T A RETURN TO THE OLD COMMUNISTS BUT CHAOS WITH ETHNIC HOSTILITIES AND DIFFICULTIES OR WHAT ONE RUSSIAN POLITICIAN PREDICTED AS A LARGE YUGOSLAVIATYPE SITUATION FOR ALL RUSSIA'S PROBLEMS A NUMBER OF PRIVITIZATION PROJECTS ARE WORKING THE IDEA THAT THE PEOPLE ARE LAZY THAT THEY'VE BEEN UNDER COMMUNISM FOR 70 YEARS AND WON'T WORK IS WRONG ABSOLUTELY WRONG BUT MR GEPHARDT NOTED THAT THE PROBLEMS ARE SEVERE AND THAT LITTLE PROGRESS IS POSSIBLE UNTIL THE RUSSIANS STABILIZE THEIR CURRENCY AND GET THEIR MONEY SUPPLY UNDER CONTROL HE ALSO ACKNOWLEDGED IT WON'T BE EASY TO PERSUADE US CITIZENS OF THE NEED FOR SIZABLE AMOUNTS OF AID TO RUSSIA POLITICALLY HE SAID IT PROBABLY WOULD BE NECESSARY TO GET SOME OF THE FUNDS BY CUTTING THE OTHER FOREIGN AID PROGRAMS THE MOST CONTROVERSIAL SOURCE WOULD BE TO SLICE THE 3 BILLION ANNUALLY THAT GOES TO ISRAEL AND 21 BILLION TO EGYPT BUT HE SAID THAT WAS POLITICALLY POSSIBLE EVERYBODY'S GOING TO HAVE TO BE WILLING TO BE FLEXIBLE AND GIVE FOR THE GOOD OF THE WHOLE ASKED IN A TELEPHONE INTERVIEW ABOUT REP GEPHARDT'S SUGGESTION REP GINGRICH SAID POINTEDLY I WISH HIM LUCK COMBINED ISRAEL AND EGYPT RECEIVE THE LARGEST PORTION OF THE FOREIGN AID BUDGET AND ISRAEL IN PARTICULAR HAS A POWERFUL DOMESTIC POLITICAL CONSTITUENCY REP GINGRICH STRESSED THAT IT'S ESSENTIAL THE WHITE HOUSE INCLUDE REPUBLICANS IN THE DELIBERATIONS ON RUSSIAN AID PRESIDENT CLINTON'S BUDGET RELEASED LAST WEEK REQUESTS 11 BILLION IN AID FOR RUSSIA AND OTHER FORMER SOVIET REPUBLICS IN FISCAL 1994 WHICH BEGINS OCT 1 BUT A SENIOR TREASURY OFFICIAL LAST WEEK EMPHASIZED THAT DOESN'T MEAN MR CLINTON WON'T ASK CONGRESS FOR MORE THAN THAT SECRETARY OF STATE WARREN CHRISTOPHER ON HIS WAY TO TOKYO TO MEET WITH HIS COUNTERPARTS FROM THE GROUP OF SEVEN INDUSTRIALIZED NATIONS TO DISCUSS RUSSIA TOLD REPORTERS THAT MR CLINTON IS CONSULTING CLOSELY WITH CONGRESSIONAL LEADERS TO WIN THEIR SUPPORT FOR MORE RUSSIAN AID HE DECLINED TO SAY HOW MUCH NEW AID THE US WOULD PLEDGE AT THE TOKYO MEETING A SENIOR US OFFICIAL TRAVELING WITH MR CHRISTOPHER SAID IT WAS TOUCH AND GO WHETHER THE NEW US AID PACKAGE ON TOP OF THE 16 BILLION ANNOUNCED BY MR CLINTON IN VANCOUVER BRITISH COLUMBIA WOULD BE READY BEFORE THE G7 MEETING ENDS THURSDAY MR CHRISTOPHER SAID HE EXPECTS THE GATHERING OF G7 FINANCE AND FOREIGN MINISTERS TO PROVIDE SUBSTANTIAL AND IMMEDIATE NEW ECONOMIC SUPPORT FOR RUSSIA INCLUDING AID THAT WILL GO RIGHT INTO THE BLOODSTREAM OF THE SOVIET ECONOMY IN A VERY IMPRESSIVE WAY OFFICIALS TRAVELING WITH MR CHRISTOPHER SAID THE PACKAGE WILL INCLUDE 15 BILLION OR MORE IN LENDING FROM INTERNATIONAL FINANCIAL INSTITUTIONS TO VERY RAPIDLY REINFORCE RUSSIAN EFFORTS AT REFORM MUCH OF THAT IS TO COME FROM THE INTERNATIONAL MONETARY FUND INCLUDING 3 BILLION THAT IS EXPECTED TO COME FROM A NEW IMF FACILITY FOR ECONOMIES IN TRANSITION THAT SETS EASIER CONDITIONS THAN CONVENTIONAL IMF LOANS 9304130029 930413 INTERNATIONAL VIETNAM MOVES TOWARD CREATING STOCK EXCHANGE BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG VIETNAM SEEMS CLOSE TO GETTING A STOCK MARKET EVEN THOUGH THE COUNTRY HAS NO SHARE TRADING AND ONLY A SMALL NUMBER OF INVESTORS AUTHORITIES IN HO CHI MINH CITY HAVE ASKED THE CENTRAL GOVERNMENT FOR PERMISSION TO SET UP A STOCKEXCHANGE CENTER BEFORE YEAR END AND THOUGH HANOI SAYS THE TIMING IS A BIT AMBITIOUS IT HASN'T REJECTED THE PLAN THE STOCKEXCHANGE CENTER WOULD BE AT A LOWER LEVEL THAN A FULLFLEDGED EXCHANGE SAYS HUNG NGUYEN DOAN DEPUTY DIRECTOR IN THE FOREIGNEXCHANGE DEPARTMENT OF THE STATE BANK OF VIETNAM WHICH RECEIVED THE PROPOSAL IN FEBRUARY INITIAL TRADING WOULD BE MOSTLY IN GOVERNMENT BONDS INVESTORS LITERALLY WOULD TRADE SECURITIES OVER A COUNTER IN THE HO CHI MINH CITY BRANCH OF THE STATE BANK FUND MANAGERS WHO HAVE MET WITH HO CHI MINH CITY OFFICIALS EXPECT TRADING TO BE DOMINATED BY STATE ENTERPRISES AND SOME OF VIETNAM'S NEW PRIVATE CORPORATIONS THE EXCHANGE WOULD START OFF AS AN EXPERIMENT SUGGESTS MARTIN ADAMS MANAGING DIRECTOR OF VIETNAM FUND MANAGEMENT CO BUT SIX TO 12 MONTHS WOULD BE A REASONABLE TIME FOR AN EXPERIMENTAL MARKET TO GROW INTO SOMETHING MORE PERMANENT MR ADAMS SAYS AND AS IT ALREADY HAS IN THE REALM OF DIRECT INVESTMENT VIETNAM'S GOVERNMENT WOULD PROBABLY ALLOW FOREIGN INVESTORS IN AT A VERY EARLY STAGE HE ADDS FOR THE MOMENT THOUGH HANOI DOESN'T EVEN HAVE AN AGENCY AVAILABLE TO REVIEW THE PROPOSAL THE NATIONAL STOCK EXCHANGE COMMITTEE MANDATED TO DRAW UP A BLUE PRINT FOR VIETNAM'S CAPITAL MARKETS SHOULD MEET BY JUNE SAYS THE STATE BANK OF VIETNAM'S MR DOAN UNTIL THEN WE CAN'T MAKE A CONCLUSION HE SAYS 9304130028 930413 FINANCING BUSINESS THERMEDICS INC THERMEDICS INC WOBURN MASS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AN OFFERING OF TWO MILLION COMMON SHARES PROCEEDS WILL BE USED FOR WORKING CAPITAL AND POTENTIAL ACQUISITIONS BY THE MAKER OF BOMB DETECTORS AND HEARTASSIST DEVICES UNDERWRITERS LED BY NATWEST SECURITIES LTD AND FIRST ALBANY CORP WILL HAVE AN OVERALLOTMENT OPTION OF 300000 SHARES THERMEDICS HAS 187 MILLION SHARES OUTSTANDING IT IS 60 OWNED BY THERMO ELECTRON CORP 9304130027 930413 PHONE FIRMS TO POST GAINS FOR 1ST PERIOD MODERATE GROWTH EXPECTED AT BABY BELLS AND GTE PACIFIC TELESIS STRUGGLES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL THE BABY BELLS AND GTE CORP ARE EXPECTED TO POST MODERATE GAINS IN FIRSTQUARTER EARNINGS WITH THE LIKELY EXCEPTION OF RECESSIONWHIPPED PACIFIC TELESIS GROUP ON AVERAGE THE GROWTH RATE FOR THE BABY BELLS WILL BE A LITTLE BETTER THAN THE GROWTH RATE FOR THE BROAD MARKET SAID ROBERT B MORRIS III TELECOMMUNICATIONS ANALYST FOR GOLDMAN SACHS & CO BUT AS THE YEAR PROGRESSES THAT WILL EVEN OUT AS IN PAST QUARTERS SOUTHWESTERN BELL CORP SAN ANTONIO TEXAS IS EXPECTED TO LEAD THE PACK OF BIG PHONE COMPANIES PERFORMANCES OF PHILADELPHIABASED BELL ATLANTIC CORP AND CHICAGOBASED AMERITECH CORP ARE ALSO EXPECTED TO BE AMONG THE BEST THE STARS OF THE PAST ARE THE STARS OF THE FUTURE MR MORRIS SAID PREDICTING DOUBLEDIGIT EARNINGS GROWTH FOR SOUTHWESTERN BELL THE COMPANY'S EARNINGS ARE EXPECTED TO RISE ABOUT 10 TO 101 A SHARE ACCORDING TO AN ANALYSTS' CONSENSUS PROVIDED BY FIRST CALL A FINANCIALINFORMATION SERVICE THE ONE TROUBLE SPOT IS SAN FRANCISCOBASED PACIFIC TELESIS WHICH IS EXPECTED TO POST FLAT EARNINGS FOR THE QUARTER WITH THE CONSENSUS AT 71 CENTS THE REASON IS OBVIOUS MR MORRIS SAID THE CALIFORNIA ECONOMY ISN'T GETTING ANY BETTER THAT HAS PUT A DAMPER ON THE GROWTH IN NEW PHONE LINES AND PHONE USAGE EARNINGS ARE LIKELY TO BE SPRINKLED WITH ONETIME ITEMS ATLANTABASED BELLSOUTH CORP FOR EXAMPLE RECENTLY ANNOUNCED THAT LOUSY WINTER WEATHER INCLUDING A MAJOR SNOWSTORM HEAVY RAINS AND WILD WINDS WILL CUT FIRSTQUARTER EARNINGS 5 CENTS A SHARE THE CONSENSUS ESTIMATE FOR BELLSOUTH IS 90 CENTS UP 4 TO 5 NOT INCLUDING THE ONETIME ITEM BELL ATLANTIC ALSO ANNOUNCED BOTH A CHARGE AND A GAIN RELATED TO ITS STAKE IN TELECOM CORP OF NEW ZEALAND AND A TAX BENEFIT THE NET EFFECT IS A GAIN OF ABOUT 15 CENTS A SHARE ANALYSTS PUT BELL ATLANTIC'S EARNINGS AT ABOUT 85 CENTS A SHARE UP ABOUT 7 TO 8 NOT INCLUDING THE ONETIME ITEMS AMERITECH IS EXPECTED TO REPORT A GAIN OF ABOUT 7 TO 124 A SHARE EXCLUDING ONETIME ITEMS NYNEX BASED IN WHITE PLAINS NY IS EXPECTED TO REPORT A RISE OF ABOUT 6 TO 7 WITH THE CONSENSUS AT 165 A SHARE DENVERBASED U S WEST INC IS EXPECTED TO POST A SLIGHT INCREASE TO ABOUT 78 CENTS A SHARE GTE CORP IS ALSO EXPECTED TO DO WELL WITH A CONSENSUS ESTIMATE OF 50 CENTS A SHARE ANALYSTS PREDICT THAT THE PHONE COMPANIES' CELLULAR UNITS WILL TURN IN STRONG PERFORMANCES DESPITE THE UPROAR EARLIER THIS YEAR OVER WHETHER PORTABLE PHONES ENCOURAGE THE GROWTH OF BRAIN TUMORS COMPANIES HAVE INDICATED THE SCARE DIDN'T SIGNIFICANTLY DAMP USAGE OF CELLULAR PHONES NOR DID IT SLOW SUBSCRIBER GROWTH WHICH SKYROCKETED ABOUT 45 LAST YEAR AND IS EXPECTED TO CONTINUE AT A SIMILAR PACE THROUGHOUT 1993 WE MAY SEE SOME SLIPPAGE IN AVERAGE CELLULAR PHONE USAGE BUT THAT'S NOT UNUSUAL IN THE FIRST QUARTER SAID DANIEL REINGOLD AN ANALYST WITH MERRILL LYNCH & CO THAT DROP TYPICALLY OCCURS AFTER HOLIDAY PROMOTIONS BOOST SALES AMONG RESIDENTIAL CUSTOMERS WHO GENERALLY SPEND LESS TIME TALKING ON THEIR CELLULAR PHONES THAN BUSINESS CUSTOMERS 9304130026 930413 NATIONAL SAFETY AGREES TO BUYBACKS FINES IN 10STATE SETTLEMENT TALLAHASSEE FLA TEN STATE ATTORNEYS GENERAL SAID NATIONAL SAFETY ASSOCIATES INC ONE OF THE NATION'S LARGEST MULTILEVEL MARKETERS AGREED TO PAY 350000 IN FINES AS PART OF A SETTLEMENT THE SETTLEMENT INCLUDED PROVISIONS THAT NATIONAL SAFETY ASSOCIATES WHICH SELLS WATER AND AIR FILTRATION PRODUCTS WOULD BUY BACK UNSOLD PRODUCTS FROM ITS INDEPENDENT SALES FORCE AT 100 OF THE PURCHASE PRICE FOR PRODUCTS BOUGHT AFTER JAN 3 1993 IF THE DISTRIBUTORS REQUEST THE BUYBACK WITHIN 30 DAYS OF NOTIFICATION THOSE REQUESTING BUYBACKS FOLLOWING THE 30DAY PERIOD WILL RECEIVE 90 OF THEIR PURCHASE PRICE ACCORDING TO THE AGREEMENT THE COMPANY SAID IT COULD NOT ESTIMATE HOW MUCH INVENTORY IT WOULD BE REQUIRED TO REPURCHASE UNDER THE AGREEMENT NATIONAL SAFETY ASSOCIATES MEMPHIS TENN RECRUITS INDEPENDENT SALES AGENTS TO SELL ITS FILTERS IN TURN RECRUITS CAN ENLIST OTHER SALESPEOPLE TO HELP THEM SELL THEIR PRODUCTS THE THIRD TIER OF RECRUITS ARE IN TURN ENCOURAGED TO DO THE SAME AND SO ON THE ATTORNEYS GENERAL ACCUSED NATIONAL SAFETY ASSOCIATES OF ENTICING THE SALES AGENTS TO TAKE LARGE UPFRONT PURCHASES JACK NORRIS ASSISTANT ATTORNEY GENERAL FOR FLORIDA ONE OF THE STATES INVOLVED IN THE SETTLEMENT SAID FLORIDA PURSUED NATIONAL SAFETY ASSOCIATES UNDER THE STATE'S DECEPTIVE TRADES AND PRACTICES LAWS NATIONAL SAFETY ASSOCIATES DID NOT ADMIT ANY WRONGDOING WE SEE THIS AS A POSITIVE DEVELOPMENT IN THE LIFE IN THE COMPANY A NATIONAL SAFETY ASSOCIATES COMPANY SPOKESMAN SAID AFTER FACING A VERITABLE MAZE OF REGULATORY REQUIREMENTS THIS IS A STEP TOWARD A LEVEL MORE UNIFORM PLAYING FIELD NATIONAL SAFETY ASSOCIATES ALSO AGREED TO MORE CLOSELY MONITOR ITS SALES AGENTS AND GROUPS OF SALES AGENTS THE COMPANY FURTHER AGREED TO REFRAIN FROM MAKING DECEPTIVE CLAIMS TO ITS AGENTS ABOUT FUTURE PROFITS OR EASE OF SALES JOINING FLORIDA IN THE SETTLEMENT WERE CONNECTICUT ILLINOIS KENTUCKY MICHIGAN OREGON PENNSYLVANIA TENNESSEE TEXAS AND VERMONT IN THE FISCAL YEAR ENDED APRIL 30 1992 CLOSELY HELD NATIONAL SAFETY ASSOCIATES REPORTED 2581 MILLION IN SALES 9304130025 930413 MIDLANTIC SOCIETY AND BARNETT BANKS POST SHARP GAINS IN 1STQUARTER RESULTS A WALL STREET JOURNAL NEWS ROUNDUP THREE REGIONAL BANKING COMPANIES REPORTED SHARPLY IMPROVED FIRSTQUARTER RESULTS MIDLANTIC CORP EDISON NJ REVERSED A YEAREARLIER LOSS AND REPORTED ITS FOURTH CONSECUTIVE PROFITABLE QUARTER SOCIETY CORP CLEVELAND SAID EARNINGS MORE THAN DOUBLED AND BARNETT BANKS INC JACKSONVILLE FLA SAID NET ROSE 37 THE BANKHOLDING COMPANY SAID ITS GAINS REFLECTED CONTINUED IMPROVEMENT IN CREDIT QUALITY AND TIGHT EXPENSE CONTROLS RESULTS WHICH EXCEEDED WALL STREET ESTIMATES REFLECT STRENGTHENING ECONOMIC CONDITIONS IN FLORIDA ASSET QUALITY ALSO IMPROVED AT THE 38 BILLION BANKING COMPANY NONPERFORMING ASSETS DECLINED 59 MILLION IN THE LATEST QUARTER TO 785 MILLION FROM YEAREND 1992 NET CHARGEOFFS WERE 505 MILLION COMPARED WITH 673 MILLION A YEAR EARLIER BARNETT HAD A LOANLOSS PROVISION OF 432 MILLION IN THE QUARTER DOWN 43 FROM A YEAR EARLIER BARNETT WHICH IN MARCH COMPLETED THE CONVERSION OF THE OFFICES OF ITS RECENT ACQUISITION FIRST FLORIDA BANKS INC HELD DOWN NONINTEREST EXPENSE WHICH DECLINED 1 TO 3954 MILLION THOMAS HANLEY AN ANALYST WITH FIRST BOSTON CORP CALLED EXPENSE MANAGEMENT A VERY POSITIVE TREND THE COST CONTROLS ARE LARGELY DUE TO THE ELIMINATION OF 1400 POSTS ALMOST A 7 CUT RELATED TO THE FIRST FLORIDA ACQUISITION AND LOWER WRITEDOWN EXPENSES THE BANK SAID IT EXPECTS THE BULK OF COST SAVINGS FROM FIRST FLORIDA IN COMING QUARTERS LIKE MOST OF THE BANKING INDUSTRY BARNETT CONTINUED TO SEE WEAK LOAN DEMAND AS ITS LOAN PORTFOLIO SHRUNK 2 TO 2586 BILLION FROM 2626 BILLION LAST YEAR NEVERTHELESS A WIDER NETINTEREST MARGIN OF 512 COMPARED WITH 499 A YEAR AGO HELPED BOOST NETINTEREST INCOME 4 TO 437 MILLION FROM 421 MILLION CHARLES W NEWMAN BARNETT'S CHIEF FINANCIAL OFFICER SAID THE BANK IS SEEING AN INCREASE IN CONSUMER LOAN DEMAND INCLUDING MORTGAGES AND INSTALLMENT CREDIT AND RECENTLY ROLLED OUT NEW SMALL BUSINESS PRODUCTS BUT INCREASES IN THOSE AREAS HAVEN'T BEEN SUFFICIENT TO OFFSET THE STEEP DECLINE IN REALESTATE LOANS AND THE DROP IN COMMERCIAL AND INDUSTRIAL LENDING EXCLUDING CHARGES AND SECURITIES GAINS MAINLY A 50 MILLION PRETAX CHARGE IN THE YEARAGO QUARTER RELATING TO ITS ACQUISITION OF AMERITRUST CORP THE BANK HOLDING COMPANY HAD OPERATING PROFIT OF 942 MILLION OR 80 CENTS A SHARE UP 29 FROM 73 MILLION OR 62 CENTS A SHARE A YEAR EARLIER ASSETS TOTALED 26 BILLION AT THE END OF THE QUARTER UP 61 FROM 245 BILLION A YEAR AGO SOCIETY SAID THE IMPROVED OPERATING PROFIT RESULTED FROM ABOUT 130 MILLION IN ANNUAL EXPENSE REDUCTION AFTER THE MARCH 1992 MERGER WITH AMERITRUST AS WELL AS AN IMPROVING ECONOMY AND WORKOUT EFFORTS THAT REDUCED THE COMPANY'S LOANLOSS PROVISION ROBERT W GILLESPIE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT MOST OF THE EXPENSE CUTS RESULTED FROM CLOSING AMERITRUST'S COMPUTER OPERATION AND FROM SELLING AND CONSOLIDATING ABOUT 100 BRANCHES TO REDUCE THE COMBINED BANKS' RETAIL NETWORK TO ABOUT 450 BRANCHES CURRENTLY SOME OF THE EXPENSE REDUCTION WAS OFFSET BY SOCIETY'S ACQUISITION IN JANUARY OF FIRST FEDERAL SAVINGS & LOAN ASSOCIATION A FORT MYERS FLA THRIFT THE COMPANY HAD A LOANLOSS PROVISION OF 24 MILLION DURING THE FIRST QUARTER DOWN 34 FROM THE YEAR EARLIER AND A 23 REDUCTION FROM THE 311 MILLION LOANLOSS PROVISION IN LAST YEAR'S FOURTH QUARTER SOCIETY ALSO SHOWED IMPROVEMENT IN ITS NONPERFORMING LOANS WHICH MADE UP 18 OF TOTAL LOANS COMPARED WITH 3 A YEAR EARLIER BUT THEY REMAINED ABOVE THE COMPANY'S GOAL OF 15 MR GILLESPIE SAID ALTHOUGH MIDLANTIC REVERSED A YEAREARLIER LOSS THE LATEST QUARTER INCLUDED A PREVIOUSLY ANNOUNCED 39 MILLION CREDIT FROM A CHANGE IN ACCOUNTING FOR INCOME TAXES THE COMPANY HAD A PRETAX LOSS OF 285 MILLION BEFORE THE CHANGE FLAT WITH YEAREARLIER RESULTS MIDLANTIC SAID ITS PROVISION FOR LOAN LOSSES FELL SHARPLY IN THE QUARTER TO 20 MILLION FROM 46 MILLION A YEAR EARLIER AND NET CHARGEOFFS TOTALED 29 MILLION IN THE QUARTER COMPARED WITH 59 MILLION A YEAR EARLIER NET INTEREST INCOME FOR THE QUARTER WAS 118 MILLION COMPARED WITH 100 MILLION A YEAR EARLIER EXCLUDING SUBSIDIARIES SOLD AT MARCH 31 MIDLANTIC'S TOTAL NONACCRUAL LOANS AND FORECLOSED PROPERTIES EXCLUDING ASSETS HELD FOR ACCELERATED DISPOSITION TOTALED 965 MILLION DOWN FROM 126 BILLION AT YEAR END AND 176 BILLION A YEAR AGO 9304130024 930413 WHO'S NEWS NBD BANCORP NBD BANCORP DETROIT DON H BARDEN 49 YEARS OLD CHAIRMAN AND PRESIDENT OF BARDEN COMMUNICATIONS INC NAMED A DIRECTOR OF THIS BANK HOLDING COMPANY FILLING A VACANT SEAT 9304130023 930413 WHO'S NEWS SILICON VALLEY BANCSHARES SILICON VALLEY BANCSHARES SAN JOSE CALIF JOHN C DEAN WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS TECHNOLOGY COMPANY LENDER WHICH RECORDED A 22 MILLION NET LOSS LAST YEAR DUE TO BAD REAL ESTATE LOANS MR DEAN 45 YEARS OLD HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PACIFIC FIRST BANK SEATTLE WHICH RECENTLY WAS ACQUIRED BY WASHINGTON MUTUAL SAVINGS BANK HE SUCCEEDS ROGER SMITH CURRENTLY VICE CHAIRMAN OF SILICON VALLEY BANCSHARES WHO WILL FOCUS ON MARKETING AND SALES 9304130022 930413 CORN PRODUCERS TO GET US AID WASHINGTON THE AGRICULTURE DEPARTMENT ANNOUNCED THAT CORN PRODUCERS HIT BY LOWQUALITY HARVESTS IN 1992 BECAUSE OF BAD WEATHER ARE ELIGIBLE FOR DISASTER RELIEF FUNDS THE PRECEDENTSETTING CASE MAKES DISASTER FUNDS AVAILABLE IN CASES OF DIMINISHED QUALITY AS WELL AS QUANTITY DISASTER PAYMENTS NORMALLY AVAILABLE ONLY IN CASES OF CROP DESTRUCTION WILL BE AVAILABLE FOR FARMERS WHO MEET THE CRITERIA FOR POOR QUALITY IN DISASTER APPLICATIONS THE ACTION STEMS FROM PROBLEMS IN MICHIGAN A STATE HIT ESPECIALLY HARD BY STORMS LAST SUMMER 9304130021 930413 WHO'S NEWS DANEK GROUP INC DANEK GROUP INC MEMPHIS TENN JEANPIERRE CAPDEVIELLE WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT STRATEGIC PLANNING FOR THIS MAKER OF SPINAL IMPLANT DEVICES PREVIOUSLY MR CAPDEVIELLE 43 YEARS OLD WAS THE SENIOR DIRECTOR OF CONTINENTAL EUROPE FOR SMITH & NEPHEW RICHARDS AN ORTHOPEDIC COMPANY BASED IN FRANCE 9304130020 930413 DELAYED US TIMBER REPORT PRESCRIBES STRICTER LOGGING CURBS TO SAVE SEABIRD BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL TIMBER AGENCIES ARE PREPARING A REPORT THAT SUGGESTS ADDITIONAL LOGGING RESTRICTIONS MAY BE NEEDED IN THE NORTHWEST TO PROTECT A RARE SEABIRD THEY APPARENTLY DELAYED FINISHING IT BECAUSE THEY DIDN'T WANT IT RELEASED DURING PRESIDENT CLINTON'S TIMBER MEETING THIS MONTH THE REPORT COVERS THE IMPLICATIONS OF PERMANENTLY PROTECTING THE MARBLED MURRELET ON ABOUT 107 FEDERAL TIMBER SALES DATING BACK TO 1989 COVERING THOUSANDS OF ACRES LOGGING HAS BEEN HALTED ON THE LAND SINCE SEPTEMBER WHEN THE GOVERNMENT DECLARED THE MARBLED MURRELET A THREATENED SPECIES UNDER THE ENDANGERED SPECIES ACT LIKE THE SPOTTED OWL THE MURRELET NEEDS OLDGROWTH FOREST HABITAT TO SURVIVE THE REPORT IS A MUCHANTICIPATED MILESTONE IN THE FOREST CONFLICT BECAUSE IT WILL HELP DEFINE HOW MUCH CUTTING IF ANY WILL BE ALLOWED ON THE ACREAGE IN THE FUTURE THE REPORT'S CONCLUSIONS ALSO WILL SEND A SIGNAL ABOUT HOW FARREACHING MURRELET PROTECTIONS AND RELATED PERMANENT LOGGING RESTRICTIONS MAY EVENTUALLY BE ON OTHER NORTHWEST TIMBERLAND THE REPORT WAS SCHEDULED TO BE COMPLETED MARCH 15 HUGH BLACK THE TOP REGIONAL FISH AND WILDLIFE SPECIALIST IN THE US FOREST SERVICE'S PORTLAND OFFICE DECLINED TO COMMENT ON THE CONTENTS OF THE REPORT WHICH HE SAID ISN'T FINISHED BUT SCIENTISTS FAMILIAR WITH RECENT DRAFTS OF THE REPORT DONE IN CONJUNCTION WITH THE US FISH AND WILDLIFE SERVICE SCIENTISTS SAY IT IMPLIES THAT POTENTIALLY SEVERE LOGGING RESTRICTIONS WILL HAVE TO BE IMPOSED TO PROTECT THE BIRD MR BLACK SAID THE AGENCIES HELD BACK THE REPORT IN PART BECAUSE THEIR SUPERIORS IN WASHINGTON DIDN'T WANT ANYTHING THAT COULD HAMPER THE TIMBER SUMMIT OR DIVERT ATTENTION BY CAUSING CONTROVERSY A SPOKESMAN FOR THE INTERIOR DEPARTMENT THE MAIN AGENCY HEADING THE CLINTON ADMINISTRATION'S REVIEW OF ENDANGERED SPECIES AND FOREST POLICY DENIED THERE WAS ANY EFFORT TO DELAY WORK ON THE REPORT FOREST SERVICE OFFICIALS IN WASHINGTON COULDN'T BE REACHED A REPORT CALLING FOR FURTHER LOGGING RESTRICTIONS WOULD HAVE STIRRED THINGS UP AT THE PORTLAND FOREST CONFERENCE CALLED BY PRESIDENT CLINTON TO COOL EMOTIONS ON BOTH SIDES OF THE FIGHT BETWEEN LOGGING AND WILDLIFE INTERESTS THE REPORT'S DELAY HAS LITTLE IMMEDIATE IMPACT ON FORESTS OR BIRDS BECAUSE OF THE INTERIM LOGGING BAN IT HEIGHTENS THE ANXIETY OF NORTHWEST TIMBER INTERESTS IF THEY DIDN'T WANT IT RELEASED BEFORE THE FOREST CONFERENCE IT'S PROBABLY NOT FULL OF GOOD NEWS SAID RALPH SAPERSTEIN VICE PRESIDENT OF THE NORTHWEST FORESTRY ASSOCIATION MR SAPERSTEIN SAID SOME TIMBER INTERESTS HOPE THE DELAY INDICATES THE ADMINISTRATION IS TRYING TO FIGURE WAYS TO ALLOW AT LEAST A BIT MORE CUTTING THAN EARLIER DRAFTS OF THE REPORT WOULD PERMIT STILL EVEN SOME TIMBER INTERESTS ACKNOWLEDGE THAT THEY PROBABLY WON'T GET TO LOG MUCH IN THE OLDGROWTH FORESTS FAVORED BY MURRELETS A SEPARATE STUDY RECENTLY RELEASED BY FOREST SERVICE SCIENTISTS FOUND MORE THAN 600 SPECIES DEPENDENT ON OLDGROWTH HABITAT THAT REPORT IMPLIED THAT LOGGING RESTRICTIONS IN OLDGROWTH FOREST MAY HAVE TO GO FAR BEYOND ANYTHING PROPOSED TO DATE BY THE GOVERNMENT TO COMPLY WITH FEDERAL WILDLIFE LAWS 9304130019 930413 TECHNOLOGY BRIEF LSI LOGIC CORP COMPANY PHILIPS UNIT JOIN TO DEVELOP TECHNOLOGY LSI LOGIC CORP SAID IT IS WORKING WITH A PHILIPS ELECTRONICS NV UNIT TO DEVELOP TECHNOLOGY THAT HELPS COMPRESS DATA IN VIDEO TRANSMISSIONS LSI BASED IN MILPITAS CALIF ALSO UNVEILED A SERIES OF PRODUCTS RELATED TO DIGITAL TELEVISION DATA COMPRESSION AND INTERACTIVE MULTIMEDIA THESE INCLUDE DECODERS THAT CONVERT COMPRESSED SIGNALS TO PICTURES AND SOUNDS ON A TELEVISION SET THE COLLABORATION WITH PHILIPS INVOLVES WORK ON INTEGRATED CIRCUITS THAT CAN PROCESS DIGITAL SIGNALS AMONG OTHER THINGS PHILIPS IS BASED IN EINDHOVEN THE NETHERLANDS 9304130018 930413 INTERNATIONAL RUSSIAN OFFICIALS CLASH OVER CLIMB IN RUBLE SUPPLY SPECIAL TO THE WALL STREET JOURNAL MOSCOW RUSSIA'S CENTRAL BANK CHIEF AND THE DEPUTY PRIME MINISTER ARE BUTTING HEADS OVER THE MONEY SUPPLY ONCE AGAIN YESTERDAY BANK CHIEF VIKTOR GERASHCHENKO SAID THE SUPPLY OF RUBLES WILL RISE ROUGHLY 18 IN EACH OF THE NEXT THREE MONTHS EVEN THOUGH THIS WILL FUEL THE NATION'S 2500 INFLATION RATE THE BANK MUST KEEP PRINTING BILLIONS OF EXTRA RUBLES TO PROVIDE INDUSTRIES WITH BADLY NEEDED LOANS HE SAID THAT PRACTICE HAS BEEN SHARPLY CRITICIZED BY ECONOMIC REFORMERS AT HOME AND ABROAD ACCELERATING THE GROWTH OF THE MONEY SUPPLY IN CONDITIONS OF AN UNBALANCED ECONOMY INCREASES THE DANGER OF PLUNGING INTO HYPERINFLATION MR GERASHCHENKO CONCEDED TO LAWMAKERS DURING A PARLIAMENT HEARING BUT THE BANK HAD NO OTHER CHOICE HE SAID DEPUTY PRIME MINISTER BORIS FYODOROV WHO IS ALSO RUSSIA'S FINANCE MINISTER HAD PRAISED A HISTORIC EVENT THE CENTRAL BANK'S DECISION TO CAP THE GROWTH OF ITS LOANS IN THE SECOND QUARTER OF THE YEAR AND TO RAISE INTEREST RATES TO 120 BUT MR FYODOROV TOLD LAWMAKERS AT THE HEARING THAT MR GERASHCHENKO'S REFUSAL TO STOP PRINTING SO MANY RUBLES AND TO STOP GRANTING LOANS TO INSOLVENT ENTERPRISES WAS FUELING INFLATION EARLIER MR FYODOROV HAD CALLED ON THE BANK TO EXPAND THE MONEY SUPPLY BY NO MORE THAN 10 A MONTH MR GERASHCHENKO SAID MR FYODOROV'S PROPOSALS WERE UNREALISTIC RUSSIA'S FAILURE TO SLOW THE GROWTH OF ITS MONEY SUPPLY HAS HAMPERED EFFORTS TO STABILIZE THE RUBLE'S VALUE AND CREATE A MARKET ECONOMY THIS FAILURE ALSO COULD COMPLICATE THE AID PACKAGE RUSSIA IS SEEKING FROM MEMBERS OF THE WORLD'S SEVEN RICHEST INDUSTRIAL NATIONS FINANCE MINISTERS FROM THE GROUP OF SEVEN NATIONS PLAN TO MEET IN TOKYO TOMORROW AND THURSDAY TO DISCUSS AIDING RUSSIA AND HEADS OF STATE ARE EXPECTED TO HAVE A SUMMIT ON THE TOPIC IN JULY RUSSIA HAS BEEN INVITED TO SEND DELEGATES TO BOTH MEETINGS THE G7 IS THE US CANADA JAPAN GERMANY BRITAIN FRANCE AND ITALY IN A SEPARATE MOVE MORE IN KEEPING WITH PRESIDENT BORIS YELTSIN'S EFFORTS TO ATTRACT FOREIGN INVESTORS THE CENTRAL BANK ALSO SAID THAT IT WILL ALLOW FOREIGN BANKS TO SET UP WHOLLY OWNED BRANCHES IN RUSSIA IN THE PAST ALMOST ALL FOREIGNERS WERE BARRED FROM OPENING BANKS EXCEPT AS JOINT VENTURES WITH RUSSIAN PARTNERS 9304130017 930413 AUTOS BIG THREE WIN JOINT PATENT MARKING A FIRST BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP TODAY PLAN TO UNVEIL AN UNUSUAL ACHIEVEMENT FOR A TRIO BETTER KNOWN FOR INNER RIVALRIES THEIR FIRST JOINT PATENT THE PATENT WHICH COVERS A MANUFACTURING PROCESS FOR A LIGHTWEIGHT MATERIAL THAT COULD REPLACE STEEL IN CAR BODIES IS A MILESTONE FOR THE BIG THREE'S STEPPEDUP EFFORTS TO POOL BASIC RESEARCH UNDER THE UMBRELLA OF THE YEAROLD UNITED STATES COUNCIL FOR AUTOMOTIVE RESEARCH OR USCAR FROM ELECTRIC CAR BATTERY TECHNOLOGY TO IMPROVED METHODS FOR MEETING VEHICLEEMISSION STANDARDS USCAR IS ACCELERATING JOINTRESEARCH PROJECTS INTO STATEOFTHEART TECHNOLOGIES SPARKING HOPE IN DETROIT OF EVENTUALLY GAINING AN EDGE ON JAPANESE RIVALS IN FACT USCAR USES THE PHRASE PRECOMPETITIVE TO EXPLAIN ITS EFFORTS FOR PROJECTS THAT ARE TOO EXPLORATORY TO POSE AN IMMEDIATE THREAT TO EACH OTHER IT'S AN AMERICAN TYPE OF THING THAT IS BUBBLING UP HERE SAYS DAVID COLE DIRECTOR FOR THE OFFICE OF AUTOMOTIVE TRANSPORTATION AT THE UNIVERSITY OF MICHIGAN WE WANT TO CUT OUT OUR COMPETITORS' THROATS MORE THAN WE WANT TO CUT EACH OTHER'S THROATS OUT SUCH JOINTRESEARCH EFFORTS WOULD HAVE BEEN ILLEGAL UNDER ANTITRUST LAWS JUST A FEW YEARS AGO EVEN AFTER PROHIBITIONS ON JOINT BASIC RESEARCH WERE RELAXED HOWEVER THE BIG THREE REMAINED WARY OF EACH OTHER BUT NOW THEY ARE HITTING THE ACCELERATOR AT USCAR AS THEY TRY TO CUT COSTS AND IMPROVE GLOBAL COMPETITIVENESS THERE ARE 10 CONSORTIA OPERATING UNDER THE USCAR UMBRELLA INDUSTRY EXECUTIVES EXPECT MORE TO COME I DOUBT YOU WOULD HAVE FOUND ANYONE WHO WOULD HAVE PREDICTED THE POSSIBILITY OF SUCH A VENTURE 10 YEARS AGO SAYS JOHN MCTAGUE FORD'S VICE PRESIDENT OF TECHNICAL AFFAIRS AND THE AUTO MAKER'S USCAR REPRESENTATIVE WE HAVE MOVED FROM AREAS OF VERY LITTLE RISK FOR ANY OF US TO AREAS THAT ARE GETTING CLOSER AND CLOSER TO THE CORE OF OUR BUSINESSES INDEED THE BIG THREE WHICH LONG CONSIDERED JAPANESE RIVALS TO BE BETTER COORDINATED IN THE AREA OF JOINT RESEARCH NOW VIEW USCAR AS THE BEST WAY TO COUNTER FOREIGN COMPETITION PARTICULARLY SINCE GM IS NOT ABLE TO FINANCE THE BROAD ARRAY OF RESEARCH PROJECTS THAT IT DID IN ITS MORE PROSPEROUS PAST THE AUTO INDUSTRY'S COMPANIES NO LONGER HAVE THE RESOURCES THAT GM HAD IN THE 1970S TO DO THINGS INDIVIDUALLY SAYS JOSEPH M COLUCCI A GM EXECUTIVE WHO IS A PROGRAM MANAGER FOR USCAR'S AUTO/OIL AIR QUALITY CONSORTIUM THAT FACT WAS DRAMATIZED IN DECEMBER WHEN GM SHARPLY SCALED BACK EFFORTS TO BUILD ITS OWN ELECTRICPOWERED CAR AND INSTEAD STARTED SHARING ITS IDEAS WITH RIVALS FORD AND CHRYSLER THOSE TALKS CONTINUE AND MAY LEAD TO YET ANOTHER CONSORTIUM TO JOINTLY DEVELOP ONE ELECTRIC CAR A FIRST FOR THE BIG THREE EACH OF THE AUTO MAKERS FACES A CHALLENGE FROM CALIFORNIA REGULATIONS THAT REQUIRE EVERY MANUFACTURER TO SELL ELECTRIC VEHICLES IN THAT STATE BY 1998 BUT INDUSTRY EXECUTIVES SAY THEY'RE SKEPTICAL THAT THEY CAN PRODUCE A PRACTICAL VEHICLE AT PRICES CONSUMERS WILL BE WILLING TO PAY WE ARE ALL RESOURCELIMITED IN EITHER PEOPLE OR DOLLARS YET WE HAVE ENORMOUS CHALLENGES IN FRONT OF US SAYS MR MCTAGUE WE ARE BETTER ABLE TO FACE THE CHALLENGES BY WORKING TOGETHER NONETHELESS CERTAIN BARRIERS TO FULL COOPERATION AMONG THE BIG THREE STILL SURVIVE AND MANY USCAR MEETINGS INCLUDE BIG THREE ATTORNEYS WHO KEEP THEIR CLIENTS ADVISED OF POTENTIAL CONFLICTS WITH ANTITRUST LAWS IT'S AMAZING THAT ANYTHING WAS ABLE TO BE DONE SAYS MR MCTAGUE THE CONSORTIUM PARTNERS SAY THEY'RE NOW ABLE TO NAVIGATE THROUGH LEGAL OBSTACLES FOR EXAMPLE THE AUTO/OIL AIR QUALITY CONSORTIUM EXPERIMENTED WITH DIFFERENT BLENDS OF FUELS MONITORING EACH BLEND'S EFFECT ON A VEHICLE'S EMISSIONS THAT INFORMATION WAS RECORDED AND SHARED WITH THE ENVIRONMENTAL PROTECTION AGENCY AND THE STATE OF CALIFORNIA WE HELPED PROVIDE THE DATA THAT PEOPLE COULD USE TO WRITE THE REGULATIONS RECALLS MR COLUCCI THE ADVANTAGE FOR THE AUTO MAKERS WAS THAT THEY PROVIDED RULEMAKERS WITH A COMMON SET OF DATA UPON WHICH REGULATIONS WERE BASED THE BIG THREE HAVE A CLEAR INCENTIVE TO SHARE COSTS FOR BASIC RESEARCH AS ILLUSTRATED BY THE PATENT USCAR PLANS TO ANNOUNCE THAT PATENT FOR A PROCESS CONNECTED TO THE MANUFACTURE OF LIGHTWEIGHT ALTERNATIVES TO STEEL IS THE PRODUCT OF FIVE YEARS OF COLLABORATIVE RESEARCH THE PROCESS MAY NOT BRING A PAYOFF IN PRODUCTION MODELS FOR SEVERAL MORE YEARS BUT WHILE ALTERNATIVE MATERIALS RESEARCH IS ONE OF THE LONGESTRUNNING JOINT PROJECTS UNDER THE USCAR UMBRELLA IT ISN'T THE HIGHEST PROFILE EFFORT ONE OF THE BIGGEST PROJECTS UNDER USCAR'S AUSPICES IS THE US ADVANCED BATTERY CONSORTIUM OR USABC FORMED TWO YEARS AGO USABC NOW REPRESENTS A 225 MILLION FOURYEAR PROJECT PARTLY FINANCED BY THE DEPARTMENT OF ENERGY TO RESEARCH NEW TECHNOLOGY TO IMPROVE LEADACID BATTERY TECHNOLOGY THE ULTIMATE GOAL TO MAKE THE US FIRST IN THE RACE WITH JAPAN TO DEVELOP A PRACTICAL ELECTRIC VEHICLE POWER SUPPLY USCAR ALSO IS LEADING DETROIT'S EFFORT TO TAP INTO TECHNOLOGIES AND ENGINEERING TALENT LEFT BEHIND BY SHRINKING MILITARY BUDGETS THE GROUP HOSTED A CONFERENCE IN FEBRUARY THAT BROUGHT ENGINEERS FROM THE DEFENSE AND AUTO INDUSTRIES TOGETHER FOR THE FIRST TIME TO DISCUSS POSSIBLE TECHNOLOGY AND RESEARCH SHARING IN EFFECT THE BIG THREE ARE HOPING THEY CAN ENLIST SCIENTISTS AT THE NATIONAL LABORATORIES TO HELP SOLVE SOME OF THE AUTO INDUSTRY'S PROBLEMS FOR THE JAPANESE IT'S A VERY FRIGHTENING PICTURE SAYS THE UNIVERSITY OF MICHIGAN'S MR COLE THEY HAVE COVETED THE NATIONAL LABS IN THIS COUNTRY 9304130016 930413 TECHNOLOGY & HEALTH IN THE LAB STAR WARS' SCIENCE PROTECTS CHICKEN PIES BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES OK SO MAYBE IT WOULDN'T WORK ZAPPING MISSILES IN SPACE HOW ABOUT SOOT AND BREAD MOLD THAT'S THE THINKING BEHIND THE PURPLE LIGHT FLASHING REGULARLY FROM AN EXPERIMENTAL SWITCHING DEVICE IN A CALIFORNIA LAB FACILITY MARTIN GUNDERSEN A PHYSICS PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA IS TRYING TO TURN THE PULSED POWER TECHNOLOGY ORIGINALLY DEVELOPED FOR STAR WARS INTO A COMMERCIAL ANTIPOLLUTION WEAPON THERE'S NO SHORTAGE OF IDEAS ON USING PULSED POWER LABS ACROSS THE COUNTRY ARE USING IT ON CHICKEN POT PIES MUSSELS AND TUMORS BUT NOW THAT DEFENSE FUNDING IS DWINDLING THERE IS A SHORTAGE OF MONEY PULSED POWER A WAY OF STORING AND RAPIDLY RELEASING ELECTRICAL ENERGY IN POWERFUL BURSTS HAS BEEN A VITAL MILITARY TOOL SINCE WORLD WAR II IN MOST RADAR CERTAIN LASER WEAPONS AND ELECTRICAL GUNS AND SIMULATED NUCLEAR BLASTS IN THE 1980S HEYDAY OF THE STRATEGIC DEFENSE INITIATIVE PULSED POWER WAS ONCE ENVISIONED AS A POTENTIAL SPACE DEATHRAY LASER TO DESTROY ENEMY MISSILES THAT TURNED OUT TO BE PROBLEMATIC AND COSTLY SDI HAS SINCE MOVED ON TO WEAPONS THAT DESTROY MISSILES BY BASHING INTO THEM ONE OF THE GOOD THINGS ABOUT SDI WAS THAT IT GOT A LOT OF SCIENTISTS LOOKING INTO FUNDAMENTAL TECHNOLOGY ISSUES THAT ARE MORE SIGNIFICANT THAN GETTING HUGE LASERS INTO SPACE SAYS MR GUNDERSEN WHO HAS A KINDLY MANNER AND EYEBROWS THAT SEEM TO HAVE A LIFE OF THEIR OWN HE JOINED USC IN 1980 TO DO LASER RESEARCH FUNDED MOSTLY BY THE PENTAGON NOW THE PROFESSOR AND A FEW OF HIS GRADUATE STUDENTS TINKER WITH AN ANTIPOLLUTION PULSEDPOWER DEVICE CALLED A PLASMA DISCHARGE CELL THE EXPERIMENT LOOKS LIKE A THICK TANGLE OF HIGHTECH PLUMBING ATOP A METAL PLATFORM ROUGHLY THE SIZE OF PINGPONG TABLE THE CELL POWERED BY AN ELECTRICAL SWITCH RELEASES THOUSANDS OF SIMULTANEOUS BURSTS OF ENERGY A SECOND THAT ARE VISIBLE AS FLASHES OF NEONPURPLE LIGHT A HIGHSPEED PHOTOGRAPH OF THE PROCESS LOOKS LIKE A STARRY SKY SHOWING A CLOUD OF TINY WHITE DOTS OF ENERGY FROZEN AGAINST A BLACK SURFACE SCIENTISTS HAVE PROVED THAT THE CHEMICAL REACTION PRODUCED BY THE INTENSE ENERGY PULSES CAN DISSOLVE TOXIC SOLVENTS AS WELL AS HARMFUL SULPHUR OXIDES FOUND IN FACTORY SMOKE THE PRINCIPLE IS SIMPLE ELECTRONS GENERATED BY THE SUDDEN POWER BURST RUN INTO MOLECULES OF NOXIOUS COMPOUNDS LITERALLY BREAKING THEM UP IN THEORY POWER PLANTS COULD REDUCE POLLUTION BY INSTALLING PULSEDPOWER DEVICES TO CREATE INTENSE ELECTRICAL DISCHARGES THAT WOULD REDUCE EMISSIONS BEFORE THEY REACH THE AIR THROUGH A MIRACLE OF PHYSICS AND CHEMISTRY YOU CAN GET RID OF SOOT MR GUNDERSEN SAYS HE AND OTHER SCIENTISTS SAY THE POLLUTIONREDUCING TECHNOLOGY COULD BE COMMERCIALLY AVAILABLE IN SEVERAL YEARS IF IT'S MADE MORE EFFICIENT SCIENTISTS ARE ALREADY DEPLOYING PULSED POWER AGAINST BREAD MOLD MAXWELL LABORATORIES INC IN SAN DIEGO FORMED ITS FOODCO CORP UNIT IN 1988 TO EXPLORE THE POTENTIAL USES OF PULSED POWER FOR FOOD PROCESSING THE COMPANY PARTLY OWNED BY THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS AND TETRALAVAL OF SWEDEN USES PULSED POWER TO PASTEURIZE LIQUIDS WITHOUT HEATING THEM AND TO KILL BACTERIA ON PACKAGING AND SOLID FOODS SIXTEEN CHICKENPOT PIES MOST OF THEM MOLDY SIT ON A METAL CART IN FOODCO'S MICROBIOLOGY LAB BUT MOLD HASN'T ATTACKED FOUR OR FIVE PIES THAT HAVE BEEN TREATED BY A LIGHTSTERILIZATION METHOD DUBBED PUREBRIGHT THE TECHNOLOGY WORKS ON PROCESSED FOODS SUCH AS PIES BY ZAPPING THEM THROUGH THEIR PLASTIC PACKAGING WITH 20 TO 30 PULSES OF LIGHT LASTING A FEW HUNDREDTHS OF A SECOND EACH THE COMBINATION OF THE TYPE OF LIGHT AND PULSE FREQUENCY KILLS BACTERIA EXTENDING THE SHELF LIFE OF FOODS FOR WEEKS OR MONTHS SAYS ALAN C KOLB MAXWELL'S CHIEF EXECUTIVE OFFICER IF REGULATORS APPROVE COMMERCIAL USE COULD COME IN A YEAR TO 16 MONTHS FOODCO SAYS A BIG ADVANTAGE TO PULSED POWER SOME SCIENTISTS SAY IS ITS ABILITY TO PERFORM THE SAME TASKS AS RADIATION WITHOUT THE HARMFUL SIDE EFFECTS PULSEDPOWER ADVOCATES NOTE THAT IRRADIATION OF FOODS REQUIRES EXTRA PROTECTION FOR TECHNICIANS AND HAS ALARMED SOME CONSUMER GROUPS THEY ALSO CONTEND PULSED POWER CAN WIPE OUT BACTERIA WITHOUT THE PHYSICAL AND CHEMICAL CHANGES RADIATION CAUSES HOWEVER DR ELSA MURANO A MICROBIOLOGIST RESEARCHING IRRADIATION AT IOWA STATE UNIVERSITY SAYS IRRADIATION FACILITIES REQUIRE PROTECTIVE CONCRETE WALLS BUT THAT THE TECHNOLOGY DOESN'T CHANGE FOOD IN ANY WAY DIFFERENT FROM COOKING OR FREEZING THAT PRINCIPLE IS FUELING EXPERIMENTS WITH PULSEDPOWER LASER BEAMS FOR CANCER TREATMENT AND OTHER MEDICAL APPLICATIONS AT THE BAYLOR RESEARCH INSTITUTE IN DALLAS SCIENTISTS ARE WORKING WITH LASERS TO WIPE OUT TUMORS OTHER PROMISING USES FOR PULSED POWER INCLUDE SPOT WELDING POWERING ELECTRIC VEHICLES REDUCING DIESELENGINE EXHAUST FUMES AND EVEN PEST CONTROL THERE'S AN EXPERIMENT UNDER WAY IN SPRINGFIELD CALIF TO SEE IF PULSED POWER CAN STEM A GROWING INVASION OF ZEBRA MUSSELS BY CREATING UNDERWATER SHOCK WAVES TO CRUSH THEIR SHELLS DESPITE GROWING INTEREST THOUGH PULSEDPOWER RESEARCHERS FACE A BUREAUCRATIC HURDLE OVER REDUCED AND REALLOCATED FUNDING SO SOME SCIENTISTS ARE STARTING TO VENTURE OUT OF THEIR LABORATORIES AND INTO THE PUBLIC EYE IN SEARCH OF CAPITAL A WORKSHOP ON THE COMMERCIAL APPLICATIONS OF PULSED POWER THE FIRST OF ITS KIND IS SLATED FOR AUGUST BUT THE UNCHARTED MOVE FROM LAB TO CONSUMER MAY BE THE MOST DIFFICULT EXPERIMENT OF ALL THERE'S SUCH A GAP BETWEEN PEOPLE WHO DO RESEARCH AND PEOPLE WHO ARE MORE ENTREPRENEURIAL IN SPIRIT SAYS USC'S MR GUNDERSEN WHO PLANS TO ATTEND THE WORKSHOP AND HOPES A FEW VENTURE CAPITALISTS WILL SHOW UP 9304130015 930413 INTERNATIONAL BRIEF MINOLTA CAMERA CO FIRM EXPECTS TO RESTORE DIVIDENDS WITHIN 2 YEARS MINOLTA CAMERA CO EXPECTS TO RESTORE THE DIVIDEND ON ITS SHARES WITHIN TWO YEARS AS BUSINESS CONDITIONS IMPROVE THE NEW PRESIDENT OF THE JAPANESE CAMERA MAKER IN TOKYO SAID ACCORDING TO A SPOKESMAN OSAMU KANAYA WHO ASSUMED THE TOP POST OF THE COMPANY APRIL 1 SAID ALSO THAT HE IS LOOKING TO BOOST DOMESTIC SALES AS THE YEN HOLDS AT RECORD HIGH LEVELS AGAINST THE DOLLAR THE SPOKESMAN SAID MINOLTA LAST JUNE CANCELED ITS 425YENPERSHARE DIVIDEND THREE US CENTS FOR THE FIRST TIME IN 25 YEARS MR KANAYA SUCCEEDED HIDEO TASHIMA WHO AT THE SAME TIME ADVANCED TO CHAIRMAN OF MINOLTA MR KANAYA SAID HE SEES A RECOVERY IN THE OFFING FOR THE CAMERA MARKET WITH DEMAND FOR PHOTO FILM ALREADY PICKING UP THE SPOKESMAN SAID THE NEW PRESIDENT SAID MINOLTA IS FOCUSING ITS EFFORTS ON THE MARKET FOR LOWPRICED COMPACT CAMERAS THE SPOKESMAN WAS CONFIRMING REMARKS BY MR KANAYA IN AN INTERVIEW PUBLISHED OVER THE WEEKEND BY A JAPANESE FINANCIAL NEWSPAPER 9304130014 930413 OTC FOCUS NASDAQ COMPOSITE CLIMBS 102 ON RISE IN BOND PRICES AND GOOD INFLATION NEWS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS RODE ON THE COATTAILS OF A STRONGER BOND MARKET AND GOOD INFLATION NEWS TO SAIL PAST THURSDAY'S LEVELS TRADERS SAY A WAVE OF POSITIVE NEWS PARTICULARLY IN THE TECHNOLOGY SECTOR FURTHER IGNITED OTC PRICES EVEN AS COMMUNICATIONS AND BROADCASTING ISSUES TOOK OFF THE NASDAQ UTILITY INDEX SOARED 2550 POINTS OR 33 TO FINISH AT 79756 FLEET CALL JUMPED 1 1/8 TO 24 3/4 ERICSSON ROSE 3/4 TO 36 1/4 AND VANGUARD CELLULAR ADDED 3/4 TO 21 3/4 ADVANCERS EXCEEDED DECLINING ISSUES 1357 TO 1303 TRADING WAS RELATIVELY SLOW HOWEVER AND NASDAQ NATIONAL MARKET SYSTEM VOLUME COULD MUSTER ONLY 177982350 SHARES COMPARED WITH 183982700 SHARES THURSDAY JOE LOFTUS SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS SAID THE SESSION WAS QUIET AS MANY INTERNATIONAL INVESTORS TOOK THE DAY OFF FOR THE LONG EASTER WEEKEND THE FRANKFURT AND LONDON MARKETS AMONG OTHERS WERE CLOSED YESTERDAY THE LARGER MARKET ALSO REGISTERED A SIGNIFICANT IMPROVEMENT WITH THE DOW JONES INDUSTRIAL AVERAGE ADDING 3161 POINTS OR 093 TO 342809 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE ABOUT 307 POINTS OR 126 TO 24691 ALTHOUGH THE OTC MARKET WAS CLOSED FOR GOOD FRIDAY AN UPBEAT CONSUMER PRICE INDEX REPORT RELEASED THAT DAY SPARKED A RALLY IN THE BOND MARKET YESTERDAY ON EASED INFLATION WORRIES THE TREASURY'S BENCHMARK LONG BOND FINISHED MORE THAN 3/4 POINT HIGHER DEPRESSING ITS YIELD TO 679 THE 30YEAR BOND HAD BEEN UP MORE THAN A POINT DURING THE DAY LEHMAN'S MR LOFTUS SAID YESTERDAY'S SESSION SHOWED MONEY GOING TO WORK AGAIN THAT WASN'T IN THE MARKET SHORT SELLERS CHASED THEMSELVES LIKE CRAZY AND MANY SELLERS DISAPPEARED MR LOFTUS SAID MUCH OF THE ACTIVITY BY SHORT SELLERS OCCURRED NEAR THE CLOSING BELL SENDING OTC PRICES UP NEAR THEIR HIGHS FOR THE SESSION SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL THE TRADER ADDED THAT FOR THE LONG TERM INTEREST RATES ARE ALL THAT MATTERS AND THE FACT THAT THERE WERE NO NEW DISASTERS YESTERDAY ADDED TO INVESTOR CONFIDENCE CHRIS MCLELLAN MANAGING DIRECTOR IN CHARGE OF TRADING AT ROBERTSON STEPHENS & CO SAID THAT IN THE PAST TWO WEEKS THE MARKET HAS SEEN A LEVEL THAT WAS PRETTY DRAMATICALLY OVERSOLD THE SURVIVORS RALLIED TODAY MARCH RETAIL SALES DATA WILL BE RELEASED TODAY AND SPECULATION RUNS HIGH THAT THE REPORT WILL BE DISAPPOINTING BASED ON POOR WEATHER FOR THE MONTH AND FLAGGING CONSUMER SENTIMENT BUT MARKET WATCHERS SAID THE STOCK MARKET WILL RESPOND MORE TO THE BOND MARKET'S REACTION TO THE DATA THAN TO THE ACTUAL DATA MANY TECHNOLOGY ISSUES POSTED SUBSTANTIAL GAINS ALTHOUGH THE SECTOR WAS GENERALLY MIXED INTEL LED THE PACK JUMPING 4 1/2 TO 117 1/2 AFTER REPORTING FIRSTQUARTER NET INCOME OF 248 A SHARE COMPARED WITH EARNINGS OF 86 CENTS A SHARE A YEAR EARLIER THE SANTA CLARA CALIF CONCERN WAS THE MOST ACTIVELY TRADED ISSUE YESTERDAY AND POSTED REVENUE THAT FOR THE FIRST TIME REACHED THE 2 BILLION MARK DURING A QUARTER AFTER LEGENT CORP OF VIENNA VA SAID IT JOINED THE CUSTOMER SUPPORT CONSORTIUM ITS STOCK ADDED 2 1/8 TO 39 3/8 THE GROUP OF COMPANIES IS ENGAGED IN DEFINING AND BUILDING A SUPPORT PLATFORM TO AUTOMATE THE ACQUISITION MANAGEMENT AND RETRIEVAL OF TECHNICAL INFORMATION MICROSOFT OF REDMOND WASH ROSE 1 1/8 TO 90 1/8 AND ADOBE SYSTEMS OF MOUNTAIN VIEW CALIF ADDED 3/4 TO 42 1/2 THE COMPANIES SAID THEY ARE WORKING TOGETHER TO MAKE ADOBE TYPE MANAGER SOFTWARE WORK WELL WITH THE MICROSOFT WINDOWS NT OPERATING SYSTEM BMC SOFTWARE ROSE 3 3/8 AUTODESK GAINED 1 1/8 TO 42 1/2 AND BRODERBUND SHOT 2 1/2 HIGHER TO 41 1/2 ALSO HIGHER WAS ACTIVELY TRADED MCI COMMUNICATIONS WHICH ROSE 3 1/4 TO 49 AFTER THE WALL STREET JOURNAL REPORTED POSITIVE COMMENTS MADE ABOUT THE WASHINGTON COMPANY BY A PAINEWEBBER ANALYST THE LONGDISTANCE TELEPHONE SERVICES PROVIDER ALSO SAID IT WOULD EXPAND ITS CUSTOMER SERVICE OPERATIONS IN SACRAMENTO CALIF CREATING 100 JOBS IN THE NEXT SEVERAL MONTHS TELECOMMUNICATIONS ROSE 1 1/4 TO 19 ON HEAVY VOLUME THE ENGLEWOOD COLO PROVIDER OF CABLE TELEVISION SERVICES UNVEILED A FOURYEAR PROJECT TO LAY A FIBER OPTIC COMMUNICATIONS CONDUIT NATIONWIDE AT AN EXPENSE OF ALMOST 2 BILLION LOSERS INCLUDED CHIPSOFT WHICH PLUNGED 1 1/8 TO 8 5/8 THE SAN DIEGO SOFTWARE COMPANY SIGNED A DEFINITIVE MERGER AGREEMENT UNDER WHICH IT WILL ACQUIRE MECA SOFTWARE FOR ABOUT 58 MILLION OR 11625 A SHARE CHIPSOFT SAID IT WILL TAKE A ONETIME CHARGE OF ABOUT 20 MILLION TO 25 MILLION IN THE FISCAL PERIOD IN WHICH THE TENDER OFFER IS COMPLETED MECA SOFTWARE BASED IN FAIRFIELD CONN GAINED 2 7/8 TO 11 1/2 QVC NETWORK SKIDDED 3 1/4 TO 47 1/4 AFTER LIBERTY MEDIA CORP WITHDREW A 640 MILLION OFFER TO BUY FULL CONTROL OF HOME SHOPPING NETWORK AMID AN ESCALATING FEDERAL CRIMINAL INVESTIGATION AND NUMEROUS PRIVATE LAWSUITS ALLEGING FINANCIAL IMPROPRIETIES BY HOME SHOPPING'S CHAIRMAN AND FORMER PRESIDENT THE WITHDRAWAL SPELLS UNCERTAINTY FOR THE FUTURE CONTROL OF THE TELEVISION HOME SHOPPING INDUSTRY AND IT DASHES ANY PROSPECT OF A MERGER BETWEEN HOME SHOPPING AND QVC NETWORK BASED IN WEST CHESTER PA HOME SHOPPING SHARES DIDN'T OPEN FOR TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PENDING NEWS BUT IN OFFMARKET TRADING THE STOCK FELL 1 1/2 TO 5 1/4 THE HEALTH CARE SECTOR SHOWED SOME STRENGTH AND IMMUNE RESPONSE BALLOONED 2 1/2 TO 13 1/4 THE CARLSBAD CALIF COMPANY AND RHONEPOULENC RORER SAID THEIR IMMUNIZATION PRODUCTS LTD JOINT VENTURE HAS ACQUIRED RIGHTS FOR THE DEVELOPMENT MANUFACTURE AND MARKETING OF THE SALK HIV IMMUNOTHERAPEUTIC IN EUROPE AFRICA CENTRAL AMERICA AND SOUTH AMERICA ON THE BIG BOARD RHONEPOULENC RORER GAINED 1/8 TO 47 1/4 MEANWHILE CHIRON MEDCO CONTAINMENT AND GENETIC THERAPY CLIMBED HIGHER AFTER BARRON'S REPORTED THAT LARRY FEINBERG A SEASONED HEALTHSTOCK INVESTOR MADE POSITIVE COMMENTS ABOUT THE COMPANIES CHIRON OF EMERYVILLE CALIF IMPROVED 3 7/8 TO 45 MEDCO CONTAINMENT OF MONTVALE NJ ROSE 1 3/8 TO 26 1/8 IN ACTIVE TRADING AND GENETIC THERAPY BASED IN GAITHERSBURG MD MOVED 2 1/4 HIGHER TO 13 3/4 9304130013 930413 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE MINORITY GROUPS AGREE THAT EDUCATION IS THE MOST IMPORTANT ISSUE FACING THEIR COMMUNITIES TODAY BUT THEIR OTHER PRIORITIES VARY EDUCATION RANKS AS THE NO 1 SOCIAL ISSUE FOR 45 OF AFRICANAMERICANS 36 OF HISPANICS AND 29 OF ASIANAMERICANS ACCORDING TO A STUDY BY MARKET SEGMENT RESEARCH OF CORAL GABLES FLA OTHER MATTERS HOWEVER RECEIVE DIFFERENT EMPHASIS FROM ONE GROUP TO ANOTHER DRUGS ARE GIVEN CONSIDERABLY MORE WEIGHT AS A SOCIAL ISSUE BY BLACKS AND HISPANICS THAN BY ASIANAMERICANS SEVENTEEN PERCENT OF BLACKS AND 15 OF HISPANICS SAY DRUGS ARE THE MOST PRESSING SOCIAL PROBLEM IN EACH GROUP ONLY EDUCATION GETS MORE RESPONSES BUT JUST 9 OF ASIANAMERICANS SAY THEY CONSIDER DRUGS THEIR TOP PRIORITY MAKING IT A DISTANT THIRD AFTER EDUCATION CRIME IS BY FAR THE BIGGEST WORRY FOR ASIANAMERICANS NAMED BY 19 OF THOSE SURVEYED CRIME IS MENTIONED FAR LESS OFTEN BY AFRICANAMERICANS AMONG WHOM IT RANKS FOURTH WITH 7 OF RESPONSES AND HISPANICS FOR WHOM IT IS SIXTH WITH 5 AIDS RANKS EVEN WITH DRUGS AS HISPANICS' NO 2 PRIORITY NAMED BY 15 OF RESPONDENTS BLACKS PUT AIDS THIRD AT 12 AND ASIANAMERICANS RATE IT EVEN WITH DRUGS AT 9 CHILD ABUSE IS OF MUCH GREATER CONCERN TO HISPANICS AMONG WHOM IT RANKED FOURTH WITH 11 OF RESPONSES THAN TO OTHER GROUPS ONLY 2 OF BLACKS AND 1 OF ASIANS LABELED CHILD ABUSE THE BIGGEST ISSUE FACING THEIR COMMUNITIES EVERYONE IS GETTING OLDER IN THE US EVEN TRADITIONALLY YOUNG MINORITY GROUPS IN 1991 THE US POPULATION HAD A MEDIAN AGE OF 331 YEARS UP FROM 303 IN 1981 ACCORDING TO CENSUS BUREAU ESTIMATES THIS TREND HELD TRUE FOR ALL RACE AND ETHNIC GROUPS IN 1981 NATIVE AMERICANS HAD THE YOUNGEST MEDIAN AGE 235 YEARS ONETENTH OF A YEAR YOUNGER THAN HISPANICS WHITE NONHISPANICS WERE THE OLDEST AT 319 YEARS A DECADE LATER HISPANICS WERE THE YOUNGEST WITH A MEDIAN AGE OF 257 VS 265 FOR NATIVE AMERICANS AND 352 FOR WHITE NONHISPANICS IN BOTH 1981 AND 1991 ASIANS AND PACIFIC ISLANDERS WERE THE SECONDOLDEST GROUP AND BLACKS THE THIRDOLDEST THE NATION'S AGING STEMS MORE FROM THE BABY BOOM GENERATION'S IMPACT THAN FROM GROWTH IN THE ELDERLY POPULATION THE PROPORTION OF PEOPLE AGE 65 OR OLDER DID CLIMB TWO PERCENTAGE POINTS DURING THE DECADE IN QUESTION TO 13 IN 1991 BUT THE SHARE OF PEOPLE AGES 35 TO 44 JUMPED FOUR POINTS TO 16 AS BABY BOOMERS FLOODED THE CATEGORY IN ABSOLUTE TERMS THE NUMBER OF 35 TO 44YEAROLDS JUMPED ALMOST 13 MILLION OR 49 THE 14TO34 AGE RANGE ON THE OTHER HAND SHRANK TO 33 OF THE POPULATION FROM 37 REFLECTING BOOMERS' FADING YOUTH THE UNDER14 SHARE WAS FLAT AT 21 THOUGH MINORITY GROUPS REMAIN YOUNGER THAN AVERAGE THEY ARE AGING ALONG WITH MAINSTREAM ANGLOS THE NUMBER OF HISPANICS AGES 35 TO 44 NEARLY DOUBLED FROM 1981 TO 1991 THE NUMBER OF ASIANS AND PACIFIC ISLANDERS IN THIS AGE RANGE MORE THAN DOUBLED FOR NATIVE AMERICANS THE 35TO44 GROWTH RATE WAS 70 FOR BLACKS 58 TIMEOUTS HAVE REPLACED SPANKING AS THE MOST COMMON WAY TO DEAL WITH RECALCITRANT KIDS LAST DECEMBER BRUSKIN/GOLDRING REPEATED THE QUESTION IN A TELEPHONE SURVEY OF 290 PARENTS WITH CHILDREN UNDER THE AGE OF 12 IT FOUND TODAY'S MOST POPULAR PUNISHMENT IS IMPOSING A TIMEOUT REMOVING A CHILD FROM AN UNDESIRABLE SITUATION TO THINK THINGS OVER THOUGH THE PRACTICE ISN'T NEARLY AS POPULAR AS SPANKING WAS THREE DECADES AGO 38 OF PARENTS USE TIMEOUTS UP FROM 20 IN 1962 LECTURING CHILDREN IN A NICE WAY RANKS SECOND AT 24 SPANKING WHICH RANKS THIRD IS USED BY 19 OF PARENTS ONLY ONETHIRD THE PROPORTION OF 1962 TAKING AWAY TV PRIVILEGES ALSO HAS FALLEN FROM FAVOR PRACTICED BY JUST 15 OF 1990S PARENTS THIS MAY BE GOOD NEWS FOR ADVERTISERS WHOM BRUSKIN HAD WARNED IN 1962 THAT IF ON ANY GIVEN DAY YOUR KID SHOW' HAS A LOW RATING YOU'LL KNOW THAT A LOT OF CHILDREN HAVE BEEN NAUGHTY TODAY'S TECHNOLOGY MAY HAVE GIVEN RISE TO MORE SPECIFIC KINDS OF HOMEENTERTAINMENTBASED PUNISHMENT SAYS BOB HOMEYER BRUSKIN/GOLDRING'S PROJECT DIRECTOR YOU MIGHT TELL CHILDREN THEY CAN WATCH TV BUT NOT USE THE VCR OR NINTENDO HE ALSO SUGGESTS HEAVIER USE OF DAY CARE MAY HAVE CONTRIBUTED TO THE RISE OF ALTERNATIVE DISCIPLINARY MEASURES SUCH AS TIMEOUTS ALMOST FOUR OUT OF FIVE DAYCARE CENTERS PREFER DISPOSABLE DIAPERS ACCORDING TO A STUDY BY THE UNIVERSITY OF CINCINNATI FOR THE NATIONAL CHILD CARE ASSOCIATION THE SURVEY FOUND THAT 73 OF CHILDCARE DIRECTORS SAY DISPOSABLES ARE BETTER FOR BABIES' HEALTH 92 SAY THEY ARE BETTER FOR EMPLOYEE HEALTH AND 85 SAY PARENTS PREFER THEM A 2200SQUAREFOOT FOURBEDROOM 2 1/2BATH HOME IN A NICE NEIGHBORHOOD COSTS ONLY ABOUT 71400 IN HOBBS NM ACCORDING TO RUNZHEIMER INTERNATIONAL A CONSULTING FIRM IN ROCHESTER WIS OTHER COMMUNITIES WHERE EXECUTIVETYPE HOUSING TYPICALLY SELLS FOR LESS THAN 100000 INCLUDE SCOTTSBORO ALA MIDLAND TEXAS AND HENNESSEY OKLA THE TRICK SAYS RUNZHEIMER'S THOMAS PEIFFER AN EXECUTIVE VICE PRESIDENT IS TO LOCATE GAINFUL MEANINGFUL EMPLOYMENT IN THESE AREAS AT THE SALARY LEVEL NECESSARY TO ENJOY THE PERKS AND BENEFITS OF SMALLCITY LIVING 9304130012 930413 CRACKING DOWN CLINTON'S TEAM MOVES TO EXTEND REGULATION IN VARIETY OF INDUSTRIES IT WILL RELY ON DETAILED RULES AND ON MORE INSPECTORS ADDING TO FIRMS' COSTS A FEW FIELDS WILL GET A BREAK BY BOB DAVIS AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON JUST ONE WEEK AFTER BILL CLINTON WON THE ELECTION CAREER OFFICIALS AT THE WHITE HOUSE TOOK STOCK AND REALIZED THAT FIGHTING FOR DEREGULATION NOW WAS FUTILE THEY ABRUPTLY CALLED OFF THEIR 19MONTH RESISTANCE TO A PROPOSAL SHARPLY LIMITING WORKER EXPOSURE TO TOXIC FUMES FROM GLYCOL ETHERS TELLING THE LABOR DEPARTMENT THERE WASN'T ANY NEED TO QUIBBLE ANY LONGER EXPLAINS A WHITE HOUSE STAFFER NOW HELPING THE CLINTON TEAM WE WERE BEING CRITICIZED FOR HOLDING UP RULES TOO LONG THE MOVE TO END THE FRACAS OVER GLYCOL ETHERS WHICH ARE USED IN PAINTS AND COATINGS WAS ONLY THE FIRST GLIMPSE OF A BOLD DEPARTURE FROM THE DRIVE TO DEREGULATE SINCE TAKING OFFICE THE CLINTON ADMINISTRATION HAS BEEN EXTENDING ITS REGULATORY REACH STRENGTHENING OVERSIGHT AND STEPPING UP ANTITRUST ENFORCEMENT ALL MOVES THAT COULD COST INDUSTRY BILLIONS OF DOLLARS AND CUT INTO CORPORATE PROFITS MAJOR AIRLINES HAVE BEEN PUT ON NOTICE THAT THE GOVERNMENT IS SCRUTINIZING THEIR PRICING PRACTICES THE CABLETELEVISION INDUSTRY FACES FEDERAL MANDATES TO ROLL BACK RATES AND IMPROVE QUALITY THE FEDS WILL EVEN MONITOR WHETHER CABLE COMPANIES ANSWER CUSTOMERS' PHONE CALLS WITHIN 30 SECONDS STRICT QUALITYCONTROL RULES WILL BE IMPOSED ON THE SEAFOOD INDUSTRY AND MORE INSPECTORS WILL BE SENT INTO MEAT AND POULTRY PLANTS TO CURB A RISE IN FOODBORNE ILLNESS AN EARLY TARGET OF PRESIDENTIAL CRITICISM THE PRESCRIPTIONDRUG INDUSTRY MAY GET SLAPPED WITH PRICE CONTROLS WHILE OVERTHECOUNTER DRUG MAKERS FACE THE PROSPECT OF TOUGH NEW REPORTING RULES AND ON FRIDAY THE CLINTON ADMINISTRATION ASKED GENERAL MOTORS CORP TO RECALL 47 MILLION PICKUP TRUCKS BECAUSE GOVERNMENT OFFICIALS FEAR SIDEMOUNTED FUEL TANKS POSE A FIRE HAZARD WE DON'T KNOW THEIR FINAL BOTTOM LINE SAYS DAVID HALE A KEMPER FINANCIAL SERVICES INC ECONOMIST DURING THIS YEAR AND NEXT REGULATION IS ONE OF THE FEW THINGS THAT CAN GIVE A BIG KICK TO INFLATION THE CLINTON CAMP HASN'T LAID OUT A COMPREHENSIVE REGULATORY AGENDA OR EVEN SET ITS PRIORITIES BUT EARLY ACTIONS SEND A CLEAR MESSAGE IN A NUMBER OF INDUSTRIES INCLUDING FINANCIAL SERVICES AND COMMUNICATIONS THE ADMINISTRATION IS CONTINUING A DEREGULATORY TREND DATING BACK TO THE CARTER YEARS BUT ELSEWHERE ESPECIALLY WHERE ENVIRONMENTAL AND HEALTH ISSUES ARE INVOLVED THE CLINTON TEAM IS PURSUING WHAT AMOUNTS TO A REGULATORY CRACKDOWN WITHIN A YEAR IT MUST DECIDE HOW TO PURSUE TWO PROJECTS THAT COULD RANK AMONG THE COSTLIEST REGULATORY EFFORTS EVER FIRST THE WHITE HOUSE IN REVAMPING THE HEALTHCARE SYSTEM MAY REQUIRE EMPLOYERS TO BUY HEALTH COVERAGE FOR THEIR WORKERS ACCORDING TO A GOVERNMENTDESIGNED PACKAGE OF BENEFITS THE PROGRAMS MAY ALSO CREATE A NATIONAL HEALTH BOARD TO REGULATE HEALTHCARE SPENDING SECOND THE ENVIRONMENTAL PROTECTION AGENCY IN DEVISING RULES FOR CLEANING UP THOUSANDS OF CONTAMINATED AREAS AT FACTORIES AND REFINERIES COULD DEMAND SO MUCH OF INDUSTRY THAT THE COSTS WOULD ECLIPSE THE MULTIBILLIONDOLLAR SUPERFUND PROGRAM SAYS PAUL PORTNEY AN ECONOMIST AT RESOURCES FOR THE FUTURE DURING THE CAMPAIGN MR CLINTON'S ECONOMIC TEAM PROMISED TO EXPLORE MARKETBASED ALTERNATIVES TO REGULATION AND SOME ECONOMIC ADVISERS REMAIN COMMITTED TO THAT IDEA BUT SO FAR THE ADMINISTRATION HAS GENERALLY STUCK WITH CONVENTIONAL REGULATORY TOOLS DETAILED RULES AND MORE INSPECTORS THAT APPROACH REFLECTS THE VIEWS OF ALLIES ON CAPITOL HILL AND AMONG ENVIRONMENTAL AND CONSUMER GROUPS AND IT JIBES WITH THE STRONG POPULIST BENT OF MANY CLINTON APPOINTEES WHO ARE MORE LIKELY TO VIEW GOVERNMENT'S ROLE AS THAT OF A TOUGH COP POLICING BUSINESS ATTORNEY GENERAL JANET RENO CALLS HERSELF AN ADVOCATE FOR CHILDREN AND VOWS TO TAKE VIGOROUS ENFORCEMENT ACTION AGAINST POLLUTERS AGRICULTURE SECRETARY MICHAEL ESPY AFTER REPRESENTING A POOR BLACK CONGRESSIONAL DISTRICT IN MISSISSIPPI FOR SIX YEARS IS TAKING THE LEAD IN CONSUMER PROTECTION HIS PLAN TO HIRE 160 MORE MEAT INSPECTORS WOULD REVERSE 12 YEARS OF SHRINKING BACK THEY CERTAINLY GIVE THE IMPRESSION THAT THEY BELIEVE GOVERNMENT CAN BE USED TO MAKE PEOPLE'S LIVES BETTER SAYS CAROL TUCKER FOREMAN A FORMER ASSISTANT AGRICULTURE SECRETARY BUT DAVID MCINTOSH WHO LED FORMER VICE PRESIDENT DAN QUAYLE'S COMPETITIVENESS COUNCIL ACCUSES THE CLINTON ADMINISTRATION OF PLAYING POLITICS REGULATION WON'T BE JUDGED BY ECONOMIC EFFECTS OR SOCIAL GAINS BUT FOR POLITICAL GAIN HE SAYS THEY'RE PUTTING TOGETHER COALITIONS THAT CAN HELP THEM ON A VARIETY OF INITIATIVES THE CLINTON ADMINISTRATION'S REGULATORY EFFORTS ARE BEING LED BY VICE PRESIDENT ALBERT GORE WHO OVERSEES AN INTERAGENCY PROJECT TO CREATE A WHITE HOUSE SYSTEM FOR REVIEWING MAJOR RULE PROPOSALS IN EFFECT MR GORE A PASSIONATE ENVIRONMENTALIST IS FILLING A VACUUM LEFT BY THE DISSOLUTION OF THE COMPETITIVENESS COUNCIL WHICH HE HARSHLY CRITICIZED FOR OPENING A BACK DOOR AT THE WHITE HOUSE FOR BIG BUSINESS TO QUIETLY REVERSE AGENCY DECISIONS NOTWITHSTANDING HIS CRITICISM OF SECRETIVE POLICY MAKING MR GORE OR MEMBERS OF HIS STAFF HAVE WEIGHED IN BEHIND CLOSED DOORS ON AT LEAST THREE REGULATORY DECISIONS INVOLVING ANTARCTICA BIOTECHNOLOGY AND FUELEFFICIENCY STANDARDS FOR CARS IN ALL THESE SITUATIONS THE GORE STAFF SIDED WITH THE ENVIRONMENTALISTS WE'VE HAD AS MUCH ACCESS AND COMMUNICATIONS WITH THE WHITE HOUSE IN THE LAST THREE MONTHS AS WE DID DURING THE PAST 12 YEARS SAYS BRUCE MANHEIM A SENIOR ATTORNEY AT THE ENVIRONMENTAL DEFENSE FUND INDUSTRY LOBBYISTS SAY THEY ALSO HAVE READY ACCESS HOWEVER JACK QUINN MR GORE'S COUNSEL SAYS IT IS COMMONPLACE FOR A VICE PRESIDENT TO PARTICIPATE IN REGULATORY DECISIONS AND FOR HIS OFFICE TO ROUND UP VIEWS FROM OTHER AGENCIES ANOTHER WHITE HOUSE OFFICIAL TAKES A MORE JADED VIEW YOU STILL HAVE A VICE PRESIDENT'S OFFICE PLAYING IN REGULATORY REVIEW JUST AS BEFORE BUT WITH A DIFFERENT ORIENTATION THE ADMINISTRATION'S REGULATORY MOVES ARE EVEN MORE PRONOUNCED BECAUSE THE USUAL COUNTERWEIGHTS ARE MISSING IN PAST ADMINISTRATIONS THE COUNCIL OF ECONOMIC ADVISERS HAS BEEN A DEREGULATORY FORCE BUT NEW COUNCIL HEAD LAURA TYSON SAYS SHE AGREES WITH MR GORE THE AUTHOR OF A BESTSELLER ON GLOBAL ENVIRONMENTAL PROBLEMS THAT ON SOME ENVIRONMENTAL ISSUES WE HAVE UNDERESTIMATED THE BENEFITS SUCH AS NEW JOBS IN CLEANAIR TECHNOLOGIES THE WHITE HOUSE BUDGET OFFICE'S REGULATORY STAFF ONCE A POWERFUL APPENDAGE OF THE COMPETITIVENESS COUNCIL IN BLOCKING RULES THAT IT THOUGHT MIGHT BE COSTLY USED TO BE A COUNTERWEIGHT AS WELL BUT NOW THE STAFF MUST GET A CLINTON APPOINTEE TO SIGN OFF ON EVERY REVIEW OF RULE PROPOSALS THE STAFF HOPES SALLY KATZEN A LAWYER NOMINATED TO HEAD THE BUDGET REGULATORY OFFICE CAN RESTORE SOME OF ITS CLOUT REGULATORYAGENCY OFFICIALS LIKE THE NEW ORDER THE ATMOSPHERE IS INCREDIBLY REFRESHING SAYS MICHAEL TAYLOR DEPUTY COMMISSIONER FOR FOOD AND DRUG ADMINISTRATION POLICY INSTEAD OF ALMOST AUTOMATIC RESISTANCE THERE'S ADMINISTRATION SUPPORT FOR WHAT WE'RE TRYING TO DO BUT JOHN ROBSON DEPUTY TREASURY SECRETARY UNDER PRESIDENT BUSH WORRIES ABOUT AN UNCHECKED PROLIFERATION OF REGULATIONS SPAWNED BY CONGRESSIONAL DEMOCRATS CONGRESS WON'T HAVE A BRAKE ON ITS REGULATORY INSTINCT HE SAYS AND YOU WON'T HAVE A PRESIDENTIAL PENCIL VETOING UNNEEDED RULES PRESIDENT BUSH'S REGULATORY RECORD IS MIXED EARLY ON HE BACKED PASSAGE OF THE CLEAN AIR ACT AND LEGISLATION TO END DISCRIMINATION AGAINST THE HANDICAPPED WHICH TOGETHER ADDED AN ESTIMATED 27 BILLION IN ANNUAL REGULATORY COSTS BUT WITH THE ELECTION APPROACHING HE REVERSED COURSE AND STARTED DECRYING THE MOUNTING COST OF REGULATION PEGGED AT 581 BILLION THIS YEAR BY UNIVERSITY OF ROCHESTER ECONOMIST THOMAS HOPKINS A BUSH MORATORIUM ON NEW RULES COMBINED WITH THE CONTROVERSY OVER THE COMPETITIVENESS COUNCIL TURNED THE OFTENTECHNICAL SUBJECT OF GOVERNMENT REGULATION INTO A MAJOR ISSUE IN THE 1992 PRESIDENTIAL RACE THE CLINTON ADMINISTRATION DISAVOWS ANY INTENTION OF ADDING TO THE REGULATORY BURDEN OR OF REREGULATING INDUSTRIES SUCH AS TRUCKING AIRLINES AND TELECOMMUNICATIONS FREED FROM GOVERNMENT CONTROL INDEED IN SOME ECONOMIC AREAS AS OPPOSED TO SUCH SOCIAL AREAS AS ENVIRONMENTAL OR CONSUMER PROTECTION THE CLINTON TEAM IS PRESSING FOR FURTHER DEREGULATION BANKING IS ONE EXAMPLE FOUR REGULATORY AGENCIES HAVE AGREED ON A BROAD PLAN TO SPUR LENDING TO SMALL BUSINESS AND HAVE CRITICIZED CURRENT REGULATIONS AS OVERLY BURDENSOME ONE GOAL MORE CHARACTER LOANS IN WHICH BANKERS EVALUATE A BORROWER'S GENERAL CREDITWORTHINESS AND WILLINGNESS TO REPAY LOANS INSTEAD OF RELYING SO MUCH ON GOVERNMENT LENDING CRITERIA ANOTHER EXAMPLE IS AUCTIONING LICENSES TO USE RADIO WAVES AN IDEA POPULARIZED IN THE REAGAN ADMINISTRATION AND REGULARLY PANNED BY DEMOCRATS UNTIL MR CLINTON EMBRACED IT CURRENTLY THE FEDERAL COMMUNICATIONS COMMISSION AWARDS LICENSES TO COMMUNICATIONS COMPANIES ONLY AFTER HOLDING LENGTHY HEARINGS OR LOTTERIES IN ADDITION THE ADMINISTRATION HAS MADE SOMETHING OF AN EXCEPTION FOR NEW TECHNOLOGIES EMBRACING DEREGULATION BUT AT A SLOWER PACE THAN PREDECESSORS WANTED IN BIOTECHNOLOGY FOR INSTANCE THE ADMINISTRATION GENERALLY HAS APPROVED A BUSH PLAN TO DEREGULATE FIELDTESTING OF SIX CROPS BUT IT KILLED A PROVISION PUSHED BY THE COMPETITIVENESS COUNCIL TO ALLOW UNIVERSITY REVIEW BOARDS INSTEAD OF THE GOVERNMENT TO APPROVE TESTS SOME INDUSTRIES MAY WELCOME A DOSE OF REGULATION BIOTECH COMPANIES THINK THAT THEY CAN BETTER ALLAY CONSUMER CONCERNS ABOUT EATING GENETICALLY ENGINEERED FOOD IF THEIR PRODUCTS PASS GOVERNMENT MUSTER FISH AND SEAFOOD PROCESSORS HOPE THAT FDA REGULATION WILL BE SEEN AS A FEDERAL SEAL OF APPROVAL BUT FOR THE MOST PART CLINTON APPOINTEES ARE BOUND TO MAKE MANY INDUSTRIES UNHAPPY OVER THE OBJECTIONS OF DRUG AND MEDICALDEVICE MAKERS MR CLINTON KEPT ON FDA COMMISSIONER DAVID KESSLER WHO MADE HIS MARK AS PRESIDENT BUSH'S FIERCEST REGULATOR NOW DR KESSLER AND OTHER FDA OFFICIALS WANT CONGRESS TO EXPAND THE AGENCY'S ENFORCEMENT POWERS FURTHER WHILE OPERATING ON THE ASSUMPTION THAT THEY ALREADY HAVE THE AUTHORITY TO OVERHAUL REGULATION OF THE ENTIRE SEAFOOD INDUSTRY AND TO REQUIRE THE REPORTING OF ADVERSE REACTIONS TO OVERTHECOUNTER DRUGS DR KESSLER ALSO REMAINS INTENT ON REQUIRING MANUFACTURERS OF DIETARY SUPPLEMENTS TO HAVE A SCIENTIFIC BASIS FOR ANY HEALTH CLAIMS THEY MAKE MEANWHILE AT THE TRANSPORTATION DEPARTMENT SECRETARY FEDERICO PENA IS PROVING TO BE AN ACTIVIST TOO ON HIS FIRST DAY IN OFFICE HE PULLED BACK A PROPOSAL TO LET TRUCK DRIVERS WORK LONGER HOURS WITH SHORTER REST PERIODS HE HAS ALSO BRUSHED ASIDE AIRLINEINDUSTRY OBJECTIONS AND PROPOSED RULES LIMITING THE HOURS FLIGHT ATTENDANTS ARE ON DUTY SO THEY WON'T BE TOO TIRED TO HANDLE EMERGENCIES MR PENA'S SUCCESS IN FORCING NORTHWEST AIRLINES TO DROP WHAT HE REGARDED AS A HEAVYHANDED PLAN TO STIFLE COMPETITION FROM TINY RENO AIR WAS TAKEN AS A MESSAGE THAT THE CLINTON ADMINISTRATION WOULD PURSUE ANTITRUST WHERE THE BUSH ADMINISTRATION WOULD HAVE HELD OFF MR CLINTON'S ADVISERS BELIEVE THAT THE CHALLENGE COMING FROM SMALLER AIRLINES KEEPS MAJOR CARRIERS FROM LOSING THE COMPETITIVE EDGE NEEDED IN THE GLOBAL DOGFIGHT FOR MARKET SHARE HOW BROADLY THEY WILL APPLY THAT VIEW TO OTHER US COMPANIES COMPETING OVERSEAS WILL BECOME CLEARER WITH THE APPOINTMENT OF A NEW ANTITRUST CHIEF AT THE JUSTICE DEPARTMENT INDUSTRY WILL ALSO GET A BETTER FIX ON JUST HOW HARD THE ADMINISTRATION WILL PRESS AHEAD ON REGULATION ONCE MR CLINTON FILLS HIGHLEVEL VACANCIES AT SEVERAL AGENCIES INCLUDING THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION COMMODITY FUTURES TRADING COMMISSION AND NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION AT THE SECURITIES AND EXCHANGE COMMISSION ARTHUR LEVITT JR A FORMER AMERICAN STOCK EXCHANGE CHAIRMAN IS THE LEADING CONTENDER TO SUCCEED RICHARD BREEDEN AS CHAIRMAN UNDER MR BREEDEN THE SEC HAS STRENGTHENED THE HAND OF SHAREHOLDERS IN PROXY BATTLES AND TOUGHENED DISCLOSURE RULES ON EXECUTIVE COMPENSATION BOTH INITIATIVES ANY CLINTON APPOINTEE WOULD PROBABLY EMBRACE YOU WON'T SEE A SEA CHANGE AT THE SEC SAYS JOHN OLSON A WASHINGTON SECURITIES LAWYER TWO REGULATORY JOBS IN THE TELECOMMUNICATIONS AREA ARE SET TO BE FILLED BY CONGRESSIONAL STAFFERS WHO HELPED DRAFT LEGISLATION THAT IMPOSED NEW RULES ON THE CABLETELEVISION INDUSTRY THE FCC CHAIRMAN IS EXPECTED TO BE ANTOINETTE COOK A SENATE STAFFER WHILE LARRY IRVING HER COUNTERPART IN THE HOUSE IS EXPECTED TO HEAD THE COMMERCE DEPARTMENT'S TELECOMMUNICATIONS OFFICE AS FOR THE FEDERAL TRADE COMMISSION MR CLINTON WON'T GET A CHANCE TO PUT HIS IMPRINT ON THE REPUBLICANDOMINATED PANEL UNTIL A SEAT OPENS UP IN SEPTEMBER 1994 BUT CHAIRWOMAN JANET STEIGER AND HER STAFF ARE ALREADY ON MR CLINTON'S WAVELENGTH THEY ARE CRACKING DOWN ON TELEMARKETING FRAUD DECEPTIVE ADVERTISING AND ANTICOMPETITIVE PRACTICES AT A FURIOUS PACE THE SORT OF ACTIVISM THAT MAY ASSURE MS STEIGER'S REAPPOINTMENT THOMAS HOPKINS IS AN ECONOMIST AT ROCHESTER INSTITUTE OF TECHNOLOGY TUESDAY'S PAGEONE ARTICLE ON REGULATION CITED THE WRONG UNIVERSITY 9304130011 930413 TECHNOLOGY SYNTEX TO RESTRICT PRICE INCREASES PALO ALTO CALIF SYNTEX CORP FOLLOWED A DOZEN OTHER DRUG MANUFACTURERS IN ANNOUCING THAT IT WILL RESTRICT PRICE INCREASES ON ITS PRODUCTS TO THE RATE OF INFLATION THE PHARMACEUTICAL INDUSTRY'S PRICING POLICIES HAVE BEEN CRITICIZED BY THE CLINTON ADMINISTRATION AS IT CONSIDERS PROPOSALS FOR REFORMING THE US HEALTHCARE SYSTEM THE COMPANIES APPARENTLY HOPE TO PREEMPT ANY MOVE TO REGULATE DRUG PRICES AS A REFORM MEASURE PHARMACEUTICALS ARE THE MOST COSTEFFECTIVE COMPONENT OF OUR HEALTHCARE SYSTEM I DON'T WANT THAT FACT TO GET LOST IN THE PUBLIC DEBATE OVER THE COSTS OF PRESCRIPTION MEDICINES SAID SYNTEX CHAIRMAN PAUL FREIMAN IN A STATEMENT 9304130009 930413 ABREAST OF THE MARKET INDUSTRIALS RISE 3161 IN BUSY DAY BOOSTED BY RALLY IN BOND MARKET BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES SIZZLED AS FALLING INTEREST RATES UNLEASHED A POWERFUL RALLY THE DOW JONES INDUSTRIAL AVERAGE ROSE 3161 POINTS TO 342809 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX CLIMBED 653 OR 148 TO 44837 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 307 OR 126 TO 24691 THE RALLY DROVE THREE SPECIALIZED INDEXES WHICH ARE WATCHED CLOSELY BY TECHNICAL ANALYSTS TO NEW HIGHS THE DOW JONES TRANSPORTATION AVERAGE JUMPED 3546 POINTS OR 22 TO 164884 THE DOW JONES UTILITY AVERAGE SURGED 169 TO 24449 AND THE NEW YORK STOCK EXCHANGE FINANCE INDEX ROSE 326 OR 149 TO 22161 NORMALLY WHEN YOU GET THE DOW JONES UTILITY AVERAGE MAKING NEW HIGHS AND THE DOW JONES TRANSPORTATION AVERAGE AND THE NYSE FINANCIAL INDEX HITTING NEW RECORDS IT'S A SIGN THAT STOCKS ARE HEADED HIGHER SAID DENNIS JARRETT MARKET ANALYST AT KIDDER PEABODY YESTERDAY'S JUMP IN STOCK PRICES WAS FUELED BY AN EXPLOSIVE RALLY IN THE BOND MARKET WHICH SENT THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND TO 679 MR JARRETT SAID MANY STOCK INVESTORS HAVE BEEN SHELLSHOCKED RECENTLY FIRST BY NEWS OF AGGRESSIVE PRICECUTTING OF CIGARETTES BY PHILIP MORRIS AND THEN BY A FORECAST OF SHARPLY LOWER SECONDQUARTER EARNINGS FROM US SURGICAL BUT MR JARRETT SAID INTEL'S REPORT YESTERDAY OF HEALTHY FIRSTQUARTER PROFITS MAY START THE PENDULUM SWINGING THE OTHER WAY IF WE GET A COUPLE MORE REPORTS LIKE THIS IT MAY LIFT THE MARKET'S SPIRITS INDEED MANY INVESTORS WERE SCOOPING UP STOCKS THAT HAVE TAKEN A DRUBBING RECENTLY AMONG THEM WERE DRUG SHARES PFIZER JUMPED 2 5/8 TO 61 3/8 SCHERINGPLOUGH GAINED 2 5/8 TO 58 3/4 BRISTOLMYERS SQUIBB LEAPED 1 3/8 TO 58 7/8 AND MERCK GAINED 1 1/8 TO 34 1/4 ALSO TOPPING THE SHOPPING LIST WERE SUCH CONSUMER NONDURABLE STOCKS AS PHILIP MORRIS WHICH ADDED 1 1/4 TO 47 1/2 A MORGAN STANLEY INDEX OF CONSUMER STOCKS SHOWED SUCH STOCKS RISING 391 TO 19228 AND ECONOMICALLY SENSITIVE STOCKS GAINING 372 TO 25901 INDIVIDUAL INVESTORS ARE SAYING THAT SOME OF THE STOCKS THAT THEY HAVE BEEN AVOIDING FOR THE LAST FEW MONTHS REPRESENT GOOD VALUE HERE SAID ABBY COHEN STOCK MARKET STRATEGIST AT GOLDMAN SACHS SHE NOTED A BOUNCEBACK IN OTHER AREAS YESTERDAY INCLUDING FOOD AND TECHNOLOGY STOCKS ON THE BIG BOARD ADVANCING ISSUES OUTNUMBERED DECLINERS 1341 TO 610 VOLUME TOTALED 259611080 SHARES DOWN FROM 282474300 SHARES THURSDAY US FINANCIAL MARKETS WERE CLOSED FRIDAY CITICORP WAS THE MOST ACTIVE STOCK ON THE BIG BOARD RISING 1 1/8 TO 30 1/4 A BLOCK OF 8914500 SHARES OF CITICORP STOCK WAS EXECUTED BY SALOMON BROTHERS YESTERDAY AFTERNOON THERE WAS SPECULATION THAT PRINCE ALWALEED BIN TALAL CITICORP'S LARGEST INDIVIDUAL SHAREHOLDER AND NEPHEW OF SAUDI ARABIA'S KING FAHD WAS THE SELLER OF THE STOCK THE PRINCE SAID IN FEBRUARY THAT HE WOULD SELL AS MANY AS 128 MILLION COMMON SHARES WITHIN THREE MONTHS A SPOKESMAN FOR CITICORP SAID HE COULDN'T IDENTIFY THE SELLER OTHER BANK STOCKS SOARED ON EXPECTATIONS THAT THE GROUP WILL REPORT BETTERTHANANTICIPATED FIRSTQUARTER EARNINGS WELLS FARGO SURGED 5 7/8 TO 115 3/8 CHEMICAL BANKING SOARED 2 1/8 TO 42 3/8 CHASE MANHATTAN ADDED 7/8 TO 36 5/8 NATIONSBANK GAINED 1 1/2 TO 57 AND BANC ONE ROSE 1 7/8 TO 60 MEDTRONIC JUMPED 6 5/8 TO 59 7/8 THE MAKER OF PACEMAKERS SAID IT EXPECTS SOLID GROWTH IN REVENUE AND PERSHARE EARNINGS FOR THE QUARTER AND YEAR ENDING APRIL 30 STONE CONTAINER CLIMBED 1 1/2 TO 9 SALOMON BROTHERS RAISED ITS RATING OF THE PACKAGING COMPANY TO BUY FROM HOLD LAST WEEK THE COMPANY DEFERRED PLANS FOR A 500 MILLION STOCK OFFERING BECAUSE OF MARKET CONDITIONS SEQUA'S CLASS A SHARES TUMBLED 3 1/8 TO 22 3/4 STANDARD & POOR'S SAID IT HAS PLACED SEQUA'S DOUBLEBPLUS SENIOR DEBT RATING AND DOUBLEBMINUS SUBORDINATED DEBT RATING ON ITS CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS LIFETIME JUMPED 2 3/8 TO 24 ABBEY HEALTHCARE GROUP SAID IT WILL SUPPORT THE NOMINATION OF LEONARD GREEN TO THE BOARD OF LIFETIME ABBEY RECENTLY WITHDREW ITS 2750ASHARE OFFER TO ACQUIRE LIFETIME BECAUSE OF LACK OF RESPONSIVENESS FROM THE BOARD MR GREEN A DIRECTOR OF ORNDA HEALTHCORP WILL RUN AGAINST ANTHONY H REEVES LIFETIME CHAIRMAN AND CHIEF EXECUTIVE OFFICER HOME SHOPPING NETWORK SHARES DIDN'T OPEN FOR TRADING YESTERDAY ON THE BIG BOARD BUT IN OFFMARKET TRADING THE STOCK FELL 1 1/2 TO 5 1/4 AFTER THE MARKET CLOSED HOME SHOPPING SAID IT LOST 31 CENTS A SHARE FOR THE FISCAL SECOND QUARTER AFTER EARNING NINE CENTS A YEAR EARLIER IT SAID IT PLANS NO CHANGES TO CURRENT MANAGEMENT AFTER LIBERTY MEDIA ABRUPTLY WITHDREW A 640 MILLIONPLUS OFFER TO BUY FULL CONTROL OF HOME SHOPPING 9304130008 930413 MARKETING BRIEF NOTED WHO'S NEWS CABLE NEWS NETWORK HIRED JUDY WOODRUFF AS AN EVENING ANCHOR THE TURNER BROADCASTING SYSTEM INC UNIT SAID MS WOODRUFF WHO HAS BEEN WASHINGTON CORRESPONDENT FOR THE MACNEIL/LEHRER NEWSHOUR SINCE 1983 WILL COANCHOR INSIDE POLITICS AT 430 PM WITH BERNARD SHAW CATHERINE CRIER WAS COANCHOR BEFORE JOINING ABC IN NOVEMBER MS WOODRUFF 46 ALSO WILL COANCHOR THE WORLD TODAY AN HOURLONG 6 PM SHOW WITH FRANK SESNO SHE SUCCEEDS BOBBIE BATTISTA WHO WILL CONTINUE TO DO AFTERNOON AND INTERNATIONAL WORK FOR CNN 9304130007 930413 BUSINESS BRIEF CLOROX CO COMPANY MAY SHED 3 UNITS TO FOCUS ON CORE BUSINESSES CLOROX CO SAID IT MAY LEAVE THE BOTTLEDWATER AND FROZENFOOD BUSINESSES TO FOCUS ON ITS CORE OPERATIONS THE OAKLAND CALIF COMPANY KNOWN FOR BLEACH AND OTHER HOUSEHOLD PRODUCTS SAID IT IS IN DISCUSSIONS WITH POTENTIAL BUYERS FOR ITS MOORE'S AND DOMANI LINES OF FROZENFOOD ITEMS WHICH ARE SOLD TO THE FOOD SERVICE INDUSTRY CLOROX ALSO MARKETS DEER PARK BOTTLED WATER PRIMARILY IN THE NORTHEAST AND FLORIDA PROSPECTIVE BUYERS WERE NOT IDENTIFIED THE THREE BUSINESSES TOGETHER HAVE ANNUAL REVENUE OF LESS THAN 170 MILLION SOME 1180 CLOROX EMPLOYEES WOULD BE AFFECTED BY THE PLANNED DIVESTMENTS 9304130006 930413 BUSINESS BRIEF SUNDSTRAND CORP PROPOSED SALE OF BUSINESS TO ROCKWELL IS CALLED OFF SUNDSTRAND CORP'S TENTATIVE AGREEMENT TO SELL ITS COMMERCIAL AVIONICS BUSINESS TO ROCKWELL INTERNATIONAL CORP FOR 225 MILLION FELL THROUGH THE MAKER OF AEROSPACE COMPONENTS AND INDUSTRIAL PRODUCTS SAID IT CALLED OFF NEGOTIATIONS WITH ROCKWELL AFTER THE COMPANIES FAILED TO REACH A MUTUALLY ACCEPTABLE DEFINITIVE AGREEMENT SUNDSTRAND SAID IT WILL PURSUE ITS OPTIONS INCLUDING SALE OF THE UNIT TO OTHER INTERESTED PARTIES IT DIDN'T IDENTIFY THE OTHER PARTIES NOR DID IT EXPLAIN WHY THE TALKS WITH ROCKWELL SOURED SUNDSTRAND OFFICIALS COULDN'T BE REACHED FOLLOWING THE DISCLOSURE YESTERDAY ROCKWELL OFFICIALS DECLINED TO ELABORATE THE COMPANY HAD SAID IT PLANNED TO USE PROCEEDS FROM THE SALE IN PART TO BUY BACK AS MANY AS FOUR MILLION OR 11 OF ITS COMMON SHARES OUTSTANDING 9304130005 930413 BUSINESS BRIEF BSD BANCORP FIRM POSTS 1STPERIOD LOSS AND RESTATES 1992 DEFICIT BSD BANCORP REPORTED A LOSS FOR THE FIRST QUARTER AND RESTATED ITS 1992 LOSS TO 132 MILLION REFLECTING A 5 MILLION ADDITION TO ITS LOANLOSS RESERVES THE 1992 RESTATED LOSS WAS EQUAL TO 358 A SHARE THE SAN DIEGO BANK HOLDING COMPANY HAD PREVIOUSLY REPORTED A LOSS OF 87 MILLION OR 236 A SHARE IN THE FIRST QUARTER THE COMPANY HAD A LOSS OF 291000 OR EIGHT CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 26000 OR ONE CENT A SHARE THE COMPANY ALSO ANNOUNCED THAT FRANK J MERCARDANTE 45 YEARS OLD WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS JAMES S BROWN 60 WHO RECENTLY RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY SAID THE PRESIDENT TITLE IS NEW MR BROWN COULDN'T BE REACHED FOR COMMENT IN DECEMBER MR MERCARDANTE WAS NAMED PRESIDENT AND CEO OF THE HOLDING COMPANY'S BANK OF SAN DIEGO SUBSIDIARY AND HE CONTINUES IN THOSE POSTS 9304130004 930413 BUSINESS BRIEF MEDICAL DIAGNOSTICS INC COMPANY SAYS PROFIT ROSE 30 IN FISCAL 2ND QUARTER MEDICAL DIAGNOSTICS INC SAID IT EXPECTS TO REPORT THAT NET INCOME FOR THE SECOND QUARTER ENDED MARCH 31 ROSE ABOUT 30 BUT WILL TRAIL ANALYSTS' EXPECTATIONS MEDICAL DIAGNOSTICS WHICH PROVIDES MAGNETIC RESONANCE SCANNING THROUGH ITS OWN SITES AND THROUGH PORTABLE FACILITIES SHARED AMONG SEVERAL HOSPITALS SAID THE DECLINE REFLECTS DOCTORS ORDERING FEWER SCANS APPARENTLY BECAUSE OF CONCERN ABOUT CHANGES IN HEALTH CARE THE BURLINGTON MASS COMPANY SAID THE NUMBER OF SCANS IN THE QUARTER ROSE 5 FROM A YEAR EARLIER WELL BELOW THE 20 GROWTH RATE PLANNED BY THE COMPANY A YEAR EARLIER MEDICAL DIAGNOSTICS EARNED 317000 OR 11 CENTS A SHARE ANALYSTS HAD PREDICTED NET OF ABOUT 16 CENTS A SHARE BUT A SPOKESWOMAN INDICATED PERSHARE EARNINGS WILL BE CLOSER TO 12 CENTS PARTLY BECAUSE OF AN INCREASE IN AVERAGE SHARES OUTSTANDING TO ABOUT 36 MILLION FROM THREE MILLION 9304130003 930413 BUSINESS BRIEF MAI SYSTEMS CORP COMPUTER SERVICES PROVIDER SEEKS BANKRUPTCY PROTECTION MAI SYSTEMS CORP AN IRVINE CALIF COMPUTER SERVICES CONCERN SAID IT FILED FOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE LAST MONTH THE COMPANY SAID ITS SECURED LENDERS IDENTIFIED ONLY AS US AND CANADIAN BANKS HAD ASSUMED OWNERSHIP OF THE STOCK OF THE COMPANY'S EUROPEAN SUBSIDIARIES IN EXCHANGE FOR THE RELEASE OF MAI FROM 84 MILLION IN DEBT BUT IN A STATEMENT THE COMPANY SAID IT FELT THE FILING WAS NECESSARY TO HELP CONTINUE OPERATIONS WHILE FORMULATING A RESTRUCTURING PLAN ROBERT L FAULKNER SENIOR VICE PRESIDENT AND A LAWYER REPRESENTING THE COMPANY SAID THEY DID NOT HAVE A COPY OF THE BANKRUPTCY PETITION AND WERE UNABLE TO SAY WHAT THE COMPANY'S ASSETS AND LIABILITIES ARE 9304130002 930413 REGULATORY CHOKEHOLD BRINGING UP BABY BY AMY S ESKIND A GOVERNMENT BAN ON BABY WALKERS THAT DECISION WILL BE UP TO THE CONSUMER PRODUCT SAFETY COMMISSION CPSC WHEN IT CONVENES TO RESOLVE THIS ISSUE THURSDAY LEADING THE FIGHT TO BAN WALKERS IS ABRAHAM BERGMAN DIRECTOR OF PEDIATRICS AT HARBORVIEW MEDICAL CENTER IN SEATTLE WHEN AN EIGHTMONTHOLD FELL DOWN A FLIGHT OF STAIRS IN HIS BABY WALKER AND WOUND UP IN DR BERGMAN'S CARE SUFFERING FROM A BRAIN HEMORRHAGE THE 12TH SERIOUS BABYWALKER INJURY THE PHYSICIAN HAD SEEN IN AS MANY MONTHS HE DECIDED TO ACT THERE ARE SO MANY ILLNESSES AND INJURIES I CAN'T DO ANYTHING ABOUT HE SAYS BUT WHEN I SEE AN INJURY THAT IS TOTALLY PREVENTABLE I HAVE TO DO SOMETHING DO SOMETHING INDEED INSTEAD OF EDUCATING PARENTS ON HOW TO AVOID THE RISKS OF USING WALKERS OR URGING THEM NOT TO BUY THEM HE RECOMMENDS OUTLAWING BABY WALKERS ALTOGETHER AMONG DR BERGMAN'S ALLIES ARE THE AMERICAN ACADEMY OF PEDIATRICS THE AMERICAN MEDICAL ASSOCIATION AND THE CONSUMER FEDERATION OF AMERICA CFA WHICH FILED A PETITION WITH THE CONSUMER PRODUCT SAFETY COMMISSION LAST AUGUST IT HAS BEEN WIDELY REPORTED THAT IN 1991 ACCORDING TO A CPSC EXTRAPOLATION FROM A SAMPLING OF 93 HOSPITALS 28900 INFANTS WERE TAKEN TO EMERGENCY ROOMS WITH SERIOUS INJURIES RELATED TO WALKERS THIS FIGURE IS SO ALARMING THAT IT OBSCURES THE FACT THAT BETTER THAN 99 OF ALL USERS WERE NOT INJURED IN WALKERS MOREOVER THE FIGURE IS INFLATED DUE TO A METHODOLOGICAL ERROR 7 OF THE INJURIES IN THE SAMPLE WERE RELATED TO STROLLERS OR JUMPERS WHICH HAVE A SWINGLIKE SEAT OR HAPPENED TO OLDER CHILDREN AND ADULTS INCLUDING ELDERLY PEOPLE USING GERIATRIC WALKERS FOUR OUT OF FIVE WALKERRELATED ACCIDENTS WERE PREVENTABLE WITH BABY GATES AND ADULT SUPERVISION 77 OF THE INFANTS FELL DOWN STAIRS AND 4 FELL OFF A PORCH OR OUT A DOOR THE CFA HAS SAID THAT WALKERS ARE DANGEROUS BECAUSE THEY GIVE INFANTS INCREASED MOBILITY AT AN AGE WHEN PARENTS ARE UNACCUSTOMED TO A MOBILE BABY THIS ARGUMENT DOESN'T WASH THE AVERAGE AGE FOR A BABYWALKER INJURY IS NINE MONTHS WHEN BABIES ARE ALREADY CRAWLING AND THEIR CURIOSITY IS ALREADY STEERING THEM INTO TROUBLE PARENTS CAUGHT WITH THEIR GATES DOWN MAY FIND THEIR BABIES AT THE BOTTOM OF THE STAIRS WHETHER OR NOT WALKERS ARE USED THE PROBLEM IS AN UNSAFE ENVIRONMENT NOT AN UNSAFE WALKER AND EVEN THOUGH DR BERGMAN AND THE CFA WOULD HAVE WALKERS BANNED AS MECHANICAL HAZARDS UNDER THE HAZARDOUS SUBSTANCES ACT OF 1960 VERY FEW OF THE 690 DOCUMENTED INJURIES IN THE CPSC'S 1991 HOSPITAL SURVEY COULD BE BLAMED ON THE WALKER ITSELF ONE CHILD'S WALKER COLLAPSED ON HIM AND ONE BABY TWISTED HER LEG FEWER THAN 100 INFANTS TIPPED OVER FELL OUT OR CLIMBED OUT OF THEIR WALKERS IN 1986 THE INDUSTRY INITIATED TIPPING TESTS AS PART OF ITS TRADE GROUP'S CERTIFICATION PROGRAM THESE LED TO DESIGN IMPROVEMENTS ON NEWER MODELS THE BASIC DESIGN HAS BEEN IN USE AT LEAST 50 YEARS MANY SUCH IMPROVEMENTS HAVE MADE IRRELEVANT SOME OF THE STUDIES FROM AS FAR BACK AS 1976 THAT ARE CITED BY ACTIVISTS TO PROVE THAT WALKERS ARE BAD FOR KIDS WHAT IS MORE WALKERS CAN PREVENT INJURIES A BABY CAN BE PROTECTED FROM SWALLOWING OBJECTS ON THE FLOOR IS BUFFERED AGAINST A FIREPLACE STOOP OR KEPT FROM CRAWLING UNDER A BARRIER AND WALKERS REDUCE STRESS FOR HARRIED PARENTS OR CAREGIVERS OFFERING A PLACE TO PUT A FRUSTRATED CHILD WHILE THEY SUPERVISE HANDSFREE WALKERS DO NOT HINDER THE BABY'S ABILITY TO LEARN TO WALK AS SOME PEOPLE CLAIM THE WALKER ITSELF DOES NOT POSE AN UNREASONABLE RISK OF INJURY AND DEATH AS THE PETITION STATES THE SINGLE 1991 WALKERRELATED FATALITY OCCURRED WHEN AN EIGHTMONTHOLD PUSHED OPEN A GATE FELL INTO A SWIMMING POOL AND DROWNED WHEN A STUDY REVEALED THAT ONLY A THIRD OF PARENTS STOPPED USING BABY WALKERS IMMEDIATELY AFTER THEIR BABIES WERE INJURED THE ANTIWALKER ACTIVISTS CITED IT TO PROVE THAT PARENTS CANNOT BE TRUSTED TO TAKE THE PROPER PRECAUTIONS I SAY IT SHOWS THAT PARENTS LIKE THE WALKERS AND REALIZE THAT THE INJURIES WERE THEIR OWN FAULT AND NOT THE FAULT OF THE WALKERS IN 1991 1772624 NEW BABY WALKERS WERE SOLD IN THE US GUESS HOW MANY FIRSTBORN BABIES CAME INTO THE WORLD AN ESTIMATED 17 MILLION PARENTS EVERYWHERE ARE SPEAKING WITH THEIR POCKETBOOKS THE CPSC MAY FORGO A BAN ON BABY WALKERS WHILE IT STUDIES THE PROBLEM AN 18MONTH STUDY HAS BEEN PROPOSED AT A COST OF 50000 BUT THE FACTS ARE ALREADY IN WOULDN'T THAT MONEY AND TIME BE BETTER SPENT CREATING EDUCATIONAL PROGRAM PROMOTING SAFETY VIA PROPER SUPERVISION AND GATING THIS SURELY WOULD INCREASE THE SAFETY OF CHILDREN BOTH IN WALKERS AND OUT OF THEM MS ESKIND REPORTS ON PERSONAL FINANCE AND OTHER SUBJECTS FOR SEVERAL PUBLICATIONS SHE LIVES IN NASHVILLE TENN 9304130001 930413 INTERNATIONAL SPAIN ELECTIONS ARE PUSHED UP BY GONZALEZ BY CARLTA VITZTHUM SPECIAL TO THE WALL STREET JOURNAL MADRID PRIME MINISTER FELIPE GONZALEZ CALLED EARLY ELECTIONS FOR JUNE 6 A MOVE INTENDED TO DEAL WITH A DEEPENING CRISIS WITHIN HIS RULING SOCIALIST PARTY AND GIVE A NEW GOVERNMENT THE MANDATE TO OVERCOME SPAIN'S ECONOMIC RECESSION THE ANNOUNCEMENT CAME TWO DAYS AFTER THE EXECUTIVE COMMITTEE OF THE SOCIALIST PARTY MET TO PATCH UP DIFFERENCES BETWEEN THE PRAGMATIC SOCIALIST GOVERNMENT AND ITS LEFTLEANING PARTY HIERARCHY TRADITIONALLY AT ODDS OVER ECONOMIC POLICY THE TWO FACTIONS CAME CLOSE TO DIVORCING LAST WEEK OVER THE PARTY'S HANDLING OF A CORRUPTION SCANDAL INVOLVING ITS FINANCES MR GONZALEZ SAID THE PRIME REASON FOR EARLY ELECTIONS IS TO CREATE A CLIMATE WITHIN WHICH A GOVERNMENT LEGITIMIZED BY THE BALLOT CAN CARRY OUT THE ECONOMIC POLICIES THAT THE COUNTRY NEEDS RECENT OPINION POLLS SHOW THE CONSERVATIVE PARTIDO POPULAR RUNNING NECKANDNECK WITH THE SOCIALISTS THOUGH THE PRIME MINISTER CONTINUES TO BE SPAIN'S MOST ADMIRED POLITICIAN EAGER TO SEIZE UPON ITS GROWING POPULARITY PARTIDO POPULAR HAS SOUGHT TO HINDER THE GOVERNMENT'S EFFORTS TO PLACE THE COUNTRY ON A NONINFLATIONARY GROWTH PATH MR GONZALEZ CONTENDED OPPOSITION PARTIES UNIONS AND BUSINESS EXECUTIVES WERE QUICK TO ATTRIBUTE THE DECISION TO HOLD ELECTIONS FIVE MONTHS EARLY TO THE SOCIALIST PARTY'S INTERNAL DIVISIONS AND THE FAILURE OF ITS ECONOMIC POLICIES A SPOKESMAN FOR CEOE SPAIN'S LARGEST BUSINESS ASSOCIATION SAID THAT BY NOT CALLING ELECTIONS MONTHS AGO THE GOVERNMENT HAS LOST PRECIOUS TIME THAT COULD HAVE BEEN USED TO RESOLVE THE ECONOMY'S REAL PROBLEMS UNTIL NOW MR GONZALEZ FAVORED COMPLETING THE CURRENT LEGISLATIVE TERM IN OCTOBER WITH THE HOPE THAT AN ECONOMIC UPTURN IN THE SECOND HALF OF THE YEAR WOULD SAVE THE PARTY FROM DEFEAT AT THE POLLS 9304130135 930322 MANAGER'S JOURNAL HANDSON APPROACH CAN GET STICKY BY DEBRA BENTON SEXUAL HARASSMENT CASES HAVE MEN WALKING ON EGGSHELLS FEELING INHIBITED AND RESENTFUL AROUND WOMEN MEN COMPLAIN THAT WOMEN ARE CREATING PROBLEMS WHERE THEY DON'T EXIST AND IF THERE IS A SMALL PROBLEM WOMEN BLOW IT UP OUT OF PROPORTION BUT WOMEN DON'T DESERVE ALL THE BLAME FOR THE PROLIFERATION OF SEXUAL HARASSMENT ACCUSATIONS WHILE CONDUCTING A SEMINAR FOR AN ACCOUNTING GROUP IN SAN DIEGO LAST SUMMER I WANTED TO MAKE A POINT ABOUT THE APPROPRIATE AND NECESSARY USE OF TOUCH IN A BUSINESS ENVIRONMENT I ASKED A MEMBER OF THE AUDIENCE TO STAND AND TOLD THE AUDIENCE TO IMAGINE THAT I WAS A MANAGER LEAVING FOR A SIXMONTH SABBATICAL AND THAT THE MAN STANDING WAS MY TEMPORARY REPLACEMENT WHILE I'M GONE JOE HERE WILL BE IN CHARGE I SAID ANY QUESTIONS OR PROBLEMS LOOK TO JOE I THEN REACHED OUT AND FIRMLY PLACED MY HAND ON HIS SHOULDER AND HELD IT THERE I WANTED TO SHOW HOW TO CONVEY A SENSE OF TRUST IN AN EMPLOYEE IN FRONT OF OTHER WORKERS THE AUDIENCE IMMEDIATELY SAW THE POSITIVE EFFECT OF THE GOOD WAY TO TOUCH TALKING WHILE SIMULTANEOUSLY TOUCHING SHOWED I HAD PASSED THE BATON OF AUTHORITY TO JOE I FOLLOWED UP WITH WHAT I THOUGHT WAS AN ACCEPTABLE AND HUMOROUS EXAMPLE OF INAPPROPRIATE OFFICE BEHAVIOR ONE OF THE MEN IN THE AUDIENCE HAPPENED TO BE WEARING BERMUDA SHORTS HIS LEGS WERE CROSSED AND ONE KNEE WAS STICKING OUT IN THE AISLE SAYING OF COURSE HOW AND WHERE YOU TOUCH IS VERY IMPORTANT I TOUCHED THE MAN'S BARE KNEE AS I WALKED AWAY I HEARD HIM SAY I'M A HAPPILY MARRIED MAN I SMILED IN ACKNOWLEDGMENT ASSUMING HE WAS JUST MAKING A FOLLOWUP REMARK TO GENERATE A LITTLE MORE AUDIENCE LAUGHTER I THEN WENT ON TO THE NEXT SUBJECT TWO DAYS LATER I RECEIVED AN OVERNIGHT EXPRESS LETTER FROM THE DIRECTOR OF THE ACCOUNTING GROUP ATTACHED TO IT WAS A LETTER OF COMPLAINT FROM THE MAN IN THE AUDIENCE HE COMPLAINED THAT HE AND HIS WIFE WHO HAD NOT ATTENDED THE SEMINAR FELT SEXUALLY HARASSED AND WERE CALLING FOR MY RESIGNATION THE LETTER STARTED A CHAIN OF CORRESPONDENCE AND PHONE CALLS FROM THE ACCUSER AND HIS LEGAL COUNSEL THE DIRECTOR PLEADED FOR MY DEFENSE SINCE THERE WERE 50SOME WITNESSES OTHER AUDIENCE MEMBERS WHO COULD SPEAK ABOUT THE SITUATION I WAS ULTIMATELY CLEARED OF ANY WRONGDOING BUT THE MALE ACCUSER WOULDN'T LEAVE IT ALONE BECAUSE I WAS INNOCENT I REFUSED TO DO ANYTHING MORE THAN WRITE A NOTE OF APOLOGY ASSURING THE MAN AND HIS WIFE THAT I HAD NO INTEREST IN HIM WHATSOEVER HOWEVER AS THE OLD SAYING GOES THE SQUEAKY WHEEL GETS THE GREASE BEFORE IT WAS OVER I WAS FIRED FROM MY SEMINAR CONTRACT OF SEVEN YEARS THE REASON WAS DOCUMENTED AS BUDGET CUTS BUT THE REAL CAUSE WAS THE VICTIM OF MY HARASSMENT OVER THE PAST THREE YEARS IN MY HOME STATE OF COLORADO THE NUMBER OF SEXUAL HARASSMENT SUITS FILED BY WOMEN HAS INCREASED BY 33 EACH YEAR IN THE SAME PERIOD OF TIME SUITS FILED BY MEN HAVE INCREASED 50 EVERY YEAR SEXUAL HARASSMENT SUITS FILED BY MEN WERE VIRTUALLY UNHEARD OF FIVE YEARS AGO NOW IN COLORADO FOR EVERY FIVE SEXUAL HARASSMENT CASES FILED BY A WOMAN ONE IS FILED BY A MAN IN 1992 ACCORDING TO THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION EEOC OF THE 7496 SEXUAL HARASSMENT ACCUSATIONS NATIONWIDE IN WHICH A LAWSUIT WAS FILED 709 WERE FILED BY MEN THE BENEFITS AWARDED IN SEXUAL HARASSMENT CASES IN 1992 TOTALED 6242512 AN AVERAGE OF LESS THAN 850 PER SUIT ALTHOUGH NOT A LARGE DOLLAR FIGURE IT WAS STILL DOUBLE THE BENEFITS AWARDED IN 1991 THE REAL COST IS IN THE ADDITIONAL LEGAL FEES DECREASED PRODUCTIVITY AND POOR MORALE AS ONE EMPLOYER CURRENTLY TIED UP IN SUCH A CASE SAYS IT'S VERY DEPRESSING TRYING TO GET ANYTHING ACCOMPLISHED YOU NEVER SEEM TO GET AWAY FROM THE CONTROVERSY THIS COMMENT HAS BECOME ALL TOO TYPICAL AND THE COST BOTH ACTUAL AND ACCRUED WILL ONLY BE GOING UP SO HOW DO YOU CREATE PERSONAL BONDS AND CAMARADERIE IN BUSINESS WITHOUT ENDING UP IN COURT AFTER MY OWN EXPERIENCE THIS IS SOMETHING I'VE THOUGHT LONG AND HARD ABOUT HERE ARE SOME SUGGESTIONS STICK TO THE BOUNDARIES YOU OR YOUR COMPANY HAVE SET DON'T THINK A PERSON OR SITUATION IS THE EXCEPTION TO THE RULE IT WON'T BE FOR MOST COMPANIES THE POLICY IS STRAIGHTFORWARD AND CONCISE IF ANY ACTION IS PERCEIVED BY ANYONE AS HARASSING EMBARRASSING OR THREATENING IT SHOULD BE ADDRESSED IMMEDIATELY IF YOU SUSPECT YOUR ACTIONS WHETHER OVERT OR SUBTLE HAVE OFFENDED ASK THE OTHER PERSON ABOUT IT RIGHT THEN AND THERE THE INNOCENT HAVE THE COURAGE TO ADDRESS A POTENTIAL PROBLEM IMMEDIATELY THE GUILTY OFTEN HOPE IT WILL BE UNNOTICED AND GO AWAY IT WON'T ASK YOUR QUESTIONS IN A NONTHREATENING WAY DID I DO SOMETHING INAPPROPRIATE OR MAKE YOU FEEL UNCOMFORTABLE THEN BE QUIET AND LISTEN WHATEVER THE PERSON SAYS LISTEN AND ASK A FOLLOWUP QUESTION IS THERE ANYTHING ELSE YOU WOULD LIKE TO SAY BE QUIET AND LISTEN IN A WAY THAT INVITES AN HONEST RESPONSE EVEN IF HIS OR HER ANSWER LETS YOU OFF THE HOOK YOU SHOULD STILL EXPRESS YOUR REGRETS WITH SOMETHING SUCH AS IF IN ANY WAY I OFFENDED YOU PLEASE ACCEPT MY APOLOGY DON'T MUMBLE OR MINIMIZE IT OR BLOW IT OUT OF PROPORTION STATE YOUR REGRET CLEARLY AND SINCERELY TO PREVENT ANY FALLOUT INQUIRE IS THERE ANYTHING I NEED TO DO TO CORRECT THIS SITUATION IF YOU THINK THE SITUATION STILL MIGHT COME BACK TO HAUNT YOU GO TELL YOUR MANAGER I MADE A MISTAKE AND HERE'S WHAT I DID TO CORRECT IT IT PAYS TO BRING UP THE BAD NEWS BEFORE SOMEONE ELSE DOES THE KEY FOR BOTH THE ACCUSER AND THE ACCUSED IS TO SLOW DOWN AND REASON OUT THE SITUATION BEFORE MAKING A MOVE WE MUST NOT FOLLOW THE PATTERN OF POPULAR THINKING AND OVERREACT BOTH SIDES NEED TO RECOGNIZE WHEN TO CALL IT QUITS EITHER SEX CAN READILY AND WRONGFULLY MAKE PUBLIC HARASSMENT CHARGES BUT IF THESE ARE MADE THOUGHTLESSLY IT'S JUST ONE MORE HINDRANCE TO AMERICA'S PRODUCTIVITY DESPITE MY EXPERIENCE IN SAN DIEGO I STILL CONFIDENTLY PROMOTE THE BUSINESS TOUCH BUT I AM MORE CAREFUL TOUCHING APPROPRIATELY WORKS FOR SUCCESSFUL PEOPLE IT WORKS FOR PRESIDENT CLINTON HAVE YOU EVER SEEN A POLITICIAN HUG MORE PEOPLE BUT MY EXPERIENCE HAS CHANGED MY PERSPECTIVE NOW WHEN I READ IN THE NEWSPAPER ABOUT SEXUAL HARASSMENT CHARGES FILED AGAINST A BUSINESSPERSON OR POLITICIAN I WONDER WHO THE REAL VICTIM IS THE ACCUSER OR THE ACCUSED MS BENTON IS A FORT COLLINS COLOBASED CONSULTANT AND AUTHOR OF LIONS DON'T NEED TO ROAR WARNER BOOKS 1992 SEE RELATED LETTERS LETTERS TO THE EDITOR WE DON'T NEED A BIG HUG WSJ APRIL 12 1993 9303220129 9304130105 930317 RETHINKING AIDS BY ROBERT ROOTBERNSTEIN AS ONE OF A SMALL BUT GROWING GROUP OF AIDS HERETICS I WAS VERY PLEASED TO SEE THAT THE RECENT NATIONAL RESEARCH COUNCIL REPORT ON AIDS CHALLENGED THE ORTHODOXY IT SAID THAT HIV INFECTION AND AIDS WILL REMAIN LIMITED TO SPECIFIC GEOGRAPHIC AREAS AND RISK GROUPS IDENTIFIED AT THE BEGINNING OF THE EPIDEMIC GAY MEN AND MORE PARTICULARLY AN EVERGROWING POPULATION OF URBAN DRUGADDICTED POVERTYRIDDEN MALNOURISHED HOPELESS AND MEDICALLY DEPRIVED PEOPLE THE POLITICAL AND SOCIAL IMPLICATIONS OF THE NATIONAL RESEARCH COUNCIL REPORT HAVE RECEIVED MASSIVE PRESS COVERAGE OVER THE PAST FEW WEEKS BUT IT IS THE SCIENTIFIC AND MEDICAL IMPLICATIONS UNADDRESSED IN THE REPORT THAT ARE TRULY REVOLUTIONARY AS THE WORLD HEALTH ORGANIZATION'S WORKING GROUP ON AIDS POINTED OUT IN 1984 IF EVERYONE IS NOT EQUALLY SUSCEPTIBLE TO AIDS FACTORS OTHER THAN HIV ALONE MUST GOVERN WHO BECOMES INFECTED AND WHETHER INFECTION RESULTS IN DISEASE THIS BASIC MEDICAL PRINCIPLE IS AS OLD AS THE GERM THEORY OF DISEASE ITSELF THERE IS ABSOLUTELY NO DOUBT THAT SOME PEOPLE ARE MUCH MORE SUSCEPTIBLE TO HIV AND AIDS THAN ARE OTHERS PERHAPS THE MOST STRIKING DATA CONCERN FEMALE PROSTITUTES IN WESTERN NATIONS EARLY IN THE EPIDEMIC IT WAS ASSUMED THAT FEMALE PROSTITUTES WOULD BECOME THE VECTORS BY WHICH HIV AND AIDS WOULD BE SPREAD TO THE HETEROSEXUAL COMMUNITY A SINGLE HIVINFECTED FEMALE PROSTITUTE MIGHT IT WAS THOUGHT INFECT DOZENS OF HETEROSEXUAL MEN AND EQUAL NUMBERS OF WOMEN THROUGH THESE MEN IN FACT BETWEEN 5 AND 10 OF FEMALE PROSTITUTES ARE HIVINFECTED IN MAJOR US CITIES SUCH AS LOS ANGELES AND NEW YORK BUT THERE ARE TWO STRIKING FACTS ABOUT THESE PROSTITUTES FIRST HIVINFECTED PROSTITUTES WITH ONLY A FEW EXCEPTIONS ARE INTRAVENOUS DRUG ABUSERS CASES OF SEXUALLY ACQUIRED HIV AMONG DRUGFREE PROSTITUTES ARE ALMOST UNKNOWN SECOND IN LITERALLY ONLY A HANDFUL OF CASES ARE FEMALE PROSTITUTES THOUGHT TO HAVE TRANSMITTED HIV TO A CLIENT AND DRUG ABUSE BY BOTH THE PROSTITUTE AND THE CLIENT HAS BEEN DOCUMENTED IN ALMOST ALL OF THOSE CASES IN CONSEQUENCE EVERY MAJOR REVIEW OF FEMALE PROSTITUTION BY THE MEDICAL AUTHORITIES OF WESTERN NATIONS HAS CONCLUDED THAT DRUGFREE FEMALE PROSTITUTES ARE NOT SUSCEPTIBLE TO HIV AND ARE NOT AND WILL NOT BE THE MEANS OF INFECTING THE GENERAL POPULATION IMMUNOLOGICALLY HEALTHY INDIVIDUALS SEEM TO BE IMMUNE THIS IS HARDLY THE BEHAVIOR EXPECTED OF A TYPICAL SEXUALLY TRANSMITTED DISEASE FURTHER EVIDENCE THAT AIDS IS CONTROLLED BY MORE THAN JUST HIV COMES FROM STUDIES OF THE DEVELOPMENT OF DISEASE FOLLOWING ACTIVE HIV INFECTION THE AVERAGE TIME FROM INFECTION TO OVERT AIDS BASED ON STUDIES OF GAY MEN AND INTRAVENOUS DRUG ABUSERS IS 10 YEARS IF HIV ALONE CONTROLLED AIDS THEN ABOUT HALF OF THE PEOPLE INFECTED WITH HIV IN 1983 SHOULD HAVE DEVELOPED AIDS BY NOW REGARDLESS OF THEIR MODE OF EXPOSURE YET THIS IS NOT TRUE OF HEMOPHILIACS IT IS ESTIMATED THAT 90 OR SOME 15000 OF THE HEMOPHILIACS IN THE US WERE INFECTED WITH HIV BETWEEN 1981 AND 1984 ONE WOULD EXPECT AT LEAST HALF OF THESE HEMOPHILIACS TO HAVE DEVELOPED AIDS BY NOW BUT ONLY 1500 CASES OF AIDS HAVE BEEN RECORDED AMONG HEMOPHILIACS DURING THE ENTIRE EPIDEMIC MOREOVER HEMOPHILIACS UNDER THE AGE OF 20 AND THOSE WITH LESS SEVERE MANIFESTATIONS OF HEMOPHILIA PROGRESS TO AIDS AT A FIFTH THE RATE OF OLDER AND MORE SEVERE HEMOPHILIACS IF ANYTHING PROVES THAT HIV ALONE DOES NOT CONTROL THE DEVELOPMENT OF AIDS THIS IS IT AN EVEN MORE STRIKING FACT IS THAT LIKE FEMALE PROSTITUTES HEMOPHILIACS HAVE NOT BECOME VECTORS FOR SPREADING AIDS INTO THE HETEROSEXUAL POPULATION SOCALLED SECONDARY CASES OF AIDS IN WHICH A PERSON NOT IN A PRIMARY RISK GROUP ACQUIRES AIDS FROM SOMEONE IN SUCH A GROUP CONSTITUTE ONLY 3 OF ALL AIDS CASES EVER REPORTED IN THE US CASES OF AIDS TRANSMITTED BY HEMOPHILIACS TOTAL ONLY 104 AS OF JANUARY 1992 AND MOST OF THE AFFECTED INDIVIDUALS HAVE DOCUMENTED ASSAULTS ON THEIR IMMUNE SYSTEMS BEYOND HIV EXPOSURE TERTIARY CASES OF AIDS ARE COMPLETELY UNKNOWN NO DOCUMENTED CASE OF AIDS EXISTS ANYWHERE IN THE WESTERN WORLD OF A DRUGFREE HETEROSEXUAL WHO CONTRACTED AIDS FROM A PRIMARY CARRIER FOR EXAMPLE A HEMOPHILIAC AND THEN TRANSMITTED THE DISEASE TO A HEALTHY DRUGFREE THIRD PARTY AGAIN THIS PHENOMENON IS UNPARALLELED IN ANY PREVIOUS EPIDEMIC THE PROSTITUTE AND HEMOPHILIAC DATA ARGUE STRONGLY FOR THE CONCLUSION THAT HEALTHY DRUGFREE PEOPLE DO NOT GET AIDS THE PEOPLE WHO DO GET BOTH HIV AND AIDS HAVE MANY ADDITIONAL IMMUNOSUPPRESSIVE FACTORS AT WORK ON THEM THAT PREDISPOSE THEM TO DISEASE THESE INCLUDE SEMENINDUCED AUTOIMMUNITY FOLLOWING UNPROTECTED ANAL INTERCOURSE BLOOD TRANSFUSIONS OR INFUSIONS OF BLOODCLOTTING FACTORS MULTIPLE CONCURRENT INFECTIONS CHRONIC USE OF RECREATIONAL AND ADDICTIVE DRUGS PROLONGED OR HIGH DOSES OF MANY ANTIBIOTICS ANTIVIRALS AND ANTIPARASITICS ANESTHETICS OPIATE ANALGESICS OR STEROIDS MALNUTRITION AND ANEMIA A PARTICULAR TYPE OF AUTOIMMUNITY IN WHICH ONE PART OF THE IMMUNE SYSTEM IS TRIGGERED TO ATTACK THE SAME T CELLS THAT ARE THE TARGET OF HIV IN AIDS EVERY PERSON WITH AIDS FOR WHOM THERE IS SUFFICIENT DOCUMENTATION HAS SOME SUBSET OF THESE RISK FACTORS CONSIDER FOR EXAMPLE THE IMMUNOLOGIC RISKS OF BLOOD TRANSFUSION PATIENTS IT IS OFTEN SAID THAT THEIR ONLY RISK OF AIDS IS HIV BUT THEY WOULD NOT NEED A BLOOD TRANSFUSION UNLESS THEY WERE ALREADY AT DEATH'S DOOR THE BLOOD THAT THEY RECEIVE ITSELF SUPPRESSES THEIR IMMUNE SYSTEMS THE GREATER THE AMOUNT OF BLOOD TRANSFUSED THE GREATER THE IMMUNOSUPPRESSION IF THE BLOOD CONTAINS HIV OR OTHER VIRUSES SUCH AS CYTOMEGALOVIRUS EPSTEINBARR VIRUS OR ONE OF THE HEPATITIS VIRUSES THERE IS ADDITIONAL SUPPRESSION OF THE IMMUNE SYSTEM MOST PEOPLE RECEIVE TRANSFUSIONS BECAUSE THEY REQUIRE SURGERY SURGERY AND THE ANESTHETICS THAT ACCOMPANY SURGERY SUPPRESS THE IMMUNE SYSTEM SO DO THE OPIATE ANALGESICS EG MORPHINE AND THE HIGH DOSES OF ANTIBIOTICS THAT ARE VERY OFTEN PRESCRIBED AFTERWARD IN SOME CASES THE TRANSFUSION TRIGGERS AN IMMUNOLOGIC CIVIL WAR IN WHICH ANTIBODIES ATTACK WHITE BLOOD CELLS INDIVIDUALLY NONE OF THESE FACTORS WOULD CAUSE AIDS BUT TOGETHER THEY CAN PROVE DEADLY SIMILARLY DRUG ADDICTS HAVE MANY MORE IMMUNOLOGIC RISKS THAN SIMPLY HIV ACQUIRED FROM SHARED NEEDLES THE DRUGS THEY USE OFTEN SUPPRESS THE IMMUNE SYSTEM MOST ADDICTS ARE CONCURRENTLY INFECTED WITH A VARIETY OF VIRUSES INCLUDING HEPATITIS VIRUSES BACTERIA AND RECURRENT SEXUALLY TRANSMITTED DISEASES THE MAJORITY CHRONICALLY ABUSE ANTIBIOTICS OBTAINED THROUGH THEIR DRUG DEALERS AND ARE THEREFORE MUCH MORE LIKELY THAN THE AVERAGE PERSON TO ACQUIRE DRUG RESISTANT STRAINS OF INFECTIONS SUCH AS TUBERCULOSIS MOST HAVE AUTOIMMUNE CONDITIONS IN WHICH THEIR ANTIBODIES TARGET THEIR WHITE BLOOD CELLS MOST ARE MALNOURISHED SOME SEVERELY SO AND DO NOT HAVE THE NUTRIENTS REQUIRED TO MOUNT AN EFFECTIVE IMMUNE RESPONSE WORSE YET IF THE BLOOD TRANSFUSION PATIENT OR DRUG ADDICT IS PREGNANT SHE MAY PASS ON NOT ONLY HIV BUT ALL OF HER IMMUNOSUPPRESSIVE RISKS TO HER INFANT THE FETUS TOO IS EXPOSED TO THE TRANSFUSION THE ANESTHETICS THE DRUGS THE MALNUTRITION THE VIRUSES AND SEXUALLY TRANSMITTED DISEASES THE ANTIBIOTICS IT EVEN INHERITS ITS IMMUNITY FOR THE FIRST FEW MONTHS OF LIFE FROM ITS MOTHER AND THEREFORE INHERITS IMPAIRED IMMUNITY IF THAT IS ALL THE MOTHER HAS TO OFFER AIDS IN SHORT IS MORE THAN JUST HIV THIS CONCLUSION IS BOTH SCARY IN THAT WE MUST RECOGNIZE THAT WE HAVE BEEN ADDRESSING ONLY PART OF THE CAUSE OF THE EPIDEMIC AND IT IS EXCITING BECAUSE IT GIVES US NEW TARGETS FOR CONTROLLING AIDS RECENT REPORTS INDICATE THAT ELIMINATING RISK FACTORS FOR HIVINFECTED PEOPLE CAN BE MORE EFFECTIVE IN PREVENTING THE DEVELOPMENT OF AIDS THAN TREATING HIV SWISS AND ITALIAN STUDIES FOR EXAMPLE SHOW THAT ELIMINATING DRUG USE AND MALNUTRITION AMONG HIVINFECTED ADDICTS SLOWS THEIR RATE OF PROGRESSION TO AIDS BY AN AVERAGE FACTOR OF THREE TO 10 COMPARED WITH ADDICTS WHO CONTINUE TO ABUSE DRUGS MANY OF THE DRUGFREE FORMER ADDICTS HAVE REMAINED HEALTHY SIMILARLY PURIFYING BLOODCLOTTING FACTORS FOR HEMOPHILIACS HAS BEEN EXTREMELY BENEFICIAL BLOODCLOTTING FACTORS NORMALLY ARE MADE FROM THE BLOOD OF HUNDREDS OR THOUSANDS OF DONORS AND INEVITABLY CONTAIN HUGE AMOUNTS OF CELLULAR VIRAL AND OTHER CONTAMINANTS THE NEW ULTRAPURIFIED OR RECOMBINANTDNAPRODUCED FACTORS HAVE TOTALLY STABILIZED IMMUNOLOGIC FUNCTIONS IN ALL OF THE TREATED HEMOPHILIACS MANY OF THESE HIVINFECTED HEMOPHILIACS HAVE EVEN HAD THEIR IMMUNOLOGIC FUNCTIONS RETURN TO NORMAL CONTROLLING THE FACTORS THAT MAKE ONE SUSCEPTIBLE TO HIV AND AIDS MAY THEREFORE TURN OUT TO BE EASIER AND MORE EFFECTIVE THAN TARGETING HIV ITSELF THIS IS THE MEDICAL IMPLICATION OF DIFFERENTIAL SUSCEPTIBILITY TO AIDS IT IS TIME WE RECOGNIZE ITS IMPORTANCE MR ROOTBERNSTEIN IS AN ASSOCIATE PROFESSOR OF PHYSIOLOGY AT MICHIGAN STATE UNIVERSITY AND AUTHOR OF RETHINKING AIDS JUST OUT FROM FREE PRESS SEE RELATED LETTERS LETTERS TO THE EDITOR THINK AGAIN THERE IS AN HIV EPIDEMIC WSJ APRIL 12 1993 9303170012 9304130095 930312 MEDICINE MEDICAL SCHOOLS STUDENTS SHUN ABORTION STUDY BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL ALTHOUGH AN ADMINISTRATION SUPPORTIVE OF A WOMAN'S RIGHT TO AN ABORTION IS LEADING THE US FOR THE FIRST TIME IN TWO DECADES MEDICAL SCHOOLS HAVE BEEN CUTTING BACK SHARPLY ON ABORTION TRAINING AND MEDICAL STUDENTS APPEAR INCREASINGLY UNWILLING TO TAKE SUCH COURSES FACED WITH CONTENTIOUS PUBLIC OPINION AND INCREASINGLY VIOLENT OPPOSITION BY ANTIABORTION ACTIVISTS CULMINATING IN WEDNESDAY'S FATAL SHOOTING OF A FLORIDA DOCTOR MANY RESIDENCY PROGRAMS IN OBSTETRICS AND GYNECOLOGY HAVE ELIMINATED ABORTION INSTRUCTION FROM THEIR ROUTINE COURSE WORK INSTEAD MANY OF THESE SCHOOLS NOW OFFER ABORTION TRAINING AS AN ELECTIVE OR NOT AT ALL AS A RESULT A TREND DEPLORED BY ABORTIONRIGHTS ADVOCATES AND LAUDED BY ANTIABORTION ACTIVISTS IS LIKELY TO ACCELERATE WOMEN ARE FINDING FEWER FACILITIES AND FEWER PHYSICIANS WILLING AND ABLE TO PROVIDE SUCH SERVICES A COLUMBIA UNIVERSITY STUDY OF 216 OF THE 271 US RESIDENCY PROGRAMS IN OBSTETRICS AND GYNECOLOGY THAT WAS PUBLISHED LAST MONTH IN THE JOURNAL OF OBSTETRICS AND GYNECOLOGY REPORTS THAT ALMOST HALF OR 47 OF GRADUATING RESIDENTS HAVE NEVER PERFORMED A FIRSTTRIMESTER ABORTION ONLY 13 OF THE PROGRAMS HAVE A FAMILYPLANNING ROTATION THE STUDY FOUND A SIMILAR STUDY LAST YEAR BY H TRENT MACKAY A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT DAVIS FOUND THAT THE NUMBER OF RESIDENCY PROGRAMS THAT OFFER FIRSTTRIMESTER ABORTION TRAINING AS A NORMAL PART OF STUDIES DECLINED TO 12 IN 1992 FROM 23 IN 1985 FOR THE EVEN MORE CONTROVERSIAL SECONDTRIMESTER ABORTION TRAINING THE NUMBER OF RESIDENCY PROGRAMS FELL TO 7 FROM 23 HE SAYS NO PROGRAMS FORCE RESIDENTS ETHICALLY OPPOSED TO ABORTIONS TO LEARN HOW TO PERFORM THEM HE ADDS THERE'S CERTAINLY A STIGMA ATTACHED TO IT NOW DR MACKAY SAYS IN MANY COMMUNITIES THIS IS NOT AN ACCEPTED THING TO DO AND THERE HAVE BEEN PRESSURES THAT ENCOURAGE PROGRAMS TO DROP ABORTION TRAINING WEDNESDAY'S SLAYING OF A FLORIDA PHYSICIAN WHO PERFORMED ABORTIONS MAY WELL INTENSIFY SUCH PRESSURES SAY ABORTIONRIGHTS ADVOCATES DR DAVID GUNN WAS SHOT AS HE GOT OUT OF HIS CAR AT THE PENSACOLA WOMEN'S MEDICAL SERVICES CLINIC DURING A PROTEST BY AN ANTIABORTION GROUP POLICE ARRESTED MICHAEL F GRIFFIN AN ANTIABORTION DEMONSTRATOR IN CONNECTION WITH THE SLAYING HE WAS CHARGED WITH MURDER THIS IS GOING TO DISCOURAGE RESIDENTS WHO DON'T FEEL REALLY STRONGLY ABOUT ABORTIONS DR MACKAY SAYS INDEED ONE OF THE THOUGHTS THAT FLEW THROUGH THE MIND OF LINDA BROWNLEE WHEN SHE HEARD ABOUT THE SHOOTING WAS THANK GOD I DON'T HAVE TO GO THROUGH THAT RECALLS THE THIRDYEAR RESIDENT IN GENERAL OBSTETRICS AND GYNECOLOGY AT GEORGIA BAPTIST HOSPITAL IN ATLANTA GEORGIA BAPTIST DOESN'T OFFER TRAINING IN ABORTION PROCEDURES AND THAT'S FINE WITH ME DR BROWNLEE SAYS IT MEANT I DIDN'T HAVE TO MAKE THAT DECISION ON WHETHER TO RECEIVE TRAINING OR NOT I'M GLAD THIS WOULD SCARE ME MORE RESIDENTS OPT INTO THE TRAINING PROGRAMS WHEN THEY ARE OFFERED AS A NORMAL PART OF ROTATION ABORTIONRIGHTS ADVOCATES SAY INDEED AT THE UNIVERSITY OF WISCONSIN AT MADISON THE PERCENTAGE OF OBSTETRICS AND GYNECOLOGY RESIDENTS WHO LEARNED HOW TO PERFORM ABORTION PROCEDURES FELL TO 75 FROM 90 WHEN THE SCHOOL TOOK THE TRAINING OUT OF ITS ROTATION TWO YEARS AGO ACCORDING TO DR CHESTER MARTIN ACTING CHAIRMAN OF THE OBGYN DEPARTMENT THOSE RESIDENTS WHO DO WANT TRAINING ARE RUNNING INTO YET ANOTHER ROADBLOCK THE ABSENCE OF MENTORS WILLING TO SET THEMSELVES UP AS ROLE MODELS DR MACKAY CALLS IT THE GRAYING OF THE ABORTION PROVIDER LEADERS IN THE FIELD WHO WERE INSTRUMENTAL IN THE REPEAL OF RESTRICTIVE LAWS ARE NOW APPROACHING RETIREMENT AGE SAYS DR DAVID M GRIMES PROFESSOR AND VICE CHAIRMAN OF THE DEPARTMENT OF OBSTETRICS GYNECOLOGY AND REPRODUCTIVE SCIENCES AT THE UNIVERSITY OF CALIFORNIA SAN FRANCISCO MANY OF THESE WERE MOTIVATED BY HAVING CARED FOR PATIENTS WHO HAD BEEN INJURED OR KILLED BY ILLEGAL ABORTIONS CLINICIANS TODAY WHO HAVE NEVER ENCOUNTERED SUCH PATIENTS MAY LACK THE PERSONAL COMMITMENT OF OLDER PROVIDERS TO ENSURE SUCH CONDITIONS NEVER RECUR DR GRIMES SAYS THE END RESULT HE SAYS HAS ALREADY BEEN WELLDOCUMENTED 83 OF US COUNTIES NOW HAVE NO ABORTION PROVIDERS ANTIABORTION GROUPS SAY THESE NUMBERS PROVE THAT HARASSMENT OF DOCTORS AND IN TURN MEDICAL SCHOOLS WHICH TRAIN RESIDENTS IN ABORTION PROCEDURES IS AN EFFECTIVE TACTIC WE ARE GOING TO KEEP EXPOSING THESE PEOPLE SAYS RANDALL TERRY THE FOUNDER OF OPERATION RESCUE HE SAYS THE ANTIABORTION GROUP WHILE OPPOSED TO THE SHOOTING IN FLORIDA MAINTAINS ITS BELIEF THAT DOCTORS WHO PERFORM ABORTIONS ARE MASSMURDERERS HE ADDS WE'LL BE LETTING THEIR NEIGHBORS KNOW THE DOCTORS WHO PERFORM ABORTIONS AND SAYS WE'LL PICKET THE CLINICS MR TERRY NOTES THAT FEWER SCHOOLS NOW TRAIN RESIDENTS TO PERFORM ABORTIONS YOU HUMILIATE THE SCHOOL HE SAYS OF OPERATION RESCUE'S STRATEGY WE HOPE THAT IN 10 YEARS THERE'LL BE NONE THAT TRAIN RESIDENTS HOW TO PERFORM ABORTIONS SEE RELATED LETTER LETTERS TO THE EDITOR WAR FOR WOMEN'S BODIES WSJ APRIL 12 1993 9303120045 9304130096 930217 ENVIRONMENT BY TIMOTHY NOAH HAZEL O'LEARY THE NEW ENERGY DEPARTMENT SECRETARY PLEDGES TO MAXIMIZE ALL ENERGY CONSERVATION ONE PLACE TO START MIGHT BE THE ENERGY DEPARTMENT ITSELF ACCORDING TO A REPORT BY ITS INSPECTOR GENERAL THE DEPARTMENT SPENDS 300 MILLION A YEAR TO POWER ITS NEARLY 9000 FACILITIES ACROSS THE COUNTRY THAT REPRESENTS A CONSUMPTION OF 83 TRILLION BRITISH THERMAL UNITS EACH YEAR IS ALL THAT ENERGY REALLY NECESSARY NOT ACCORDING TO THE INSPECTOR GENERAL'S OFFICE WHICH SCOURED SIX DOEOPERATED NATIONAL LABORATORIES FOR EXAMPLES OF ENERGY WASTE THE SITES EXAMINED WERE THE FERMI AND ARGONNE NATIONAL LABS BOTH NEAR CHICAGO THE OAK RIDGE NATIONAL LAB AND THE Y12 PLANT BOTH IN OAK RIDGE TENN AND THE LOS ALAMOS AND SANDIA NATIONAL LABS BOTH IN NEW MEXICO THESE FACILITIES WHICH ARE PRINCIPALLY ENGAGED IN NUCLEARWEAPONS RESEARCH REPRESENT ROUGHLY 33 OF DOE'S ENERGY EXPENDITURES THE SURVEY FOUND THAT ENERGY USAGE IN MOST BUILDINGS WAS ABOUT THE SAME AT MIDNIGHT AS AT MIDDAY A SIGN THAT HEATING AIR CONDITIONING VENTILATION AND LIGHTING USAGE ISN'T BEING CUT BACK DURING OFFPEAK HOURS AT THE ARGONNE LAB PERIMETER HEATING IN THE CAFETERIA OPERATED 24 HOURS A DAY RATHER THAN JUST DURING WORKING HOURS AT THE FERMI LAB LIGHTS WEREN'T TURNED OFF WHEN THE BUILDINGS WERE UNOCCUPIED OVERALL THE COMBINED ENERGY OVERUSE AT THE SIX FACILITIES COSTS THE US 14 MILLION A YEAR ACCORDING TO THE REPORT AMERICANS REMAIN UNINFORMED ABOUT CFCS AND THE AEROSOL INDUSTRY ISN'T HAPPY ACCORDING TO A SURVEY CONDUCTED LATE LAST YEAR BY OPINION RESEARCH FOR THE CONSUMER AEROSOL PRODUCTS COUNCIL CLOSE TO HALF OF ALL THE PEOPLE SURVEYED DIDN'T KNOW HOW CHLOROFLUOROCARBONS AFFECT THE ENVIRONMENT ANSWER THEY DEPLETE THE EARTH'S OZONE LAYER THE INDUSTRY TRADE GROUP'S SURVEY OF MORE THAN 1000 PEOPLE OVER THE AGE OF 18 ALSO FOUND THAT ALMOST HALF OF ALL RESPONDENTS COULDN'T NAME THE MOST COMMON USES OF CFCS HINT THE ENVIRONMENTAL PROTECTION AGENCY HAS LATELY STEPPED UP REGULATIONS FOR THE DISPOSAL OF AIR CONDITIONERS AND REFRIGERATORS IGNORANCE ABOUT CFCS IS A MATTER OF URGENT CONCERN TO THE AEROSOL COUNCIL BECAUSE OF THE CONTINUING MISCONCEPTION THAT AEROSOL CANS REMAIN A MAJOR SOURCE OF CFCS IN THE SURVEY THE INDUSTRY WAS UPSET TO FIND THAT MORE THAN 30 OF RESPONDENTS MISTAKENLY SAID AEROSOL CANS WERE THE MOST COMMON SOURCE OF CFCS ACTUALLY THE EPA BANNED ALL USE OF CFC PROPELLANTS IN 1978 EXCEPT FOR CERTAIN MEDICAL APPLICATIONS DANIEL MINOGUE VICE PRESIDENT FOR SALES AT PRECISION VALVE SAYS SUCH IGNORANCE HAS COST HIS INDUSTRY DEARLY THE MARKET SHRANK BY ONETHIRD IN THE WAKE OF THE 1978 BAN EVEN THOSE PRODUCTS THAT DIDN'T CONTAIN CFCS SUFFERED HE SAYS ONLY NOW IS THE NUMBER OF AEROSOL CANS BACK TO ITS FORMER LEVEL TO COMBAT MISCONCEPTIONS THE COUNCIL HAS PRINTED UP 10000 INFORMATION KITS TO DISTRIBUTE TO SCHOOLS ABOUT 7500 TEACHERS HAVE ALREADY ORDERED THEM SAYS MR MINOGUE MR MINOGUE CONCEDES THAT AEROSOLS ARE STILL A MINOR ENVIRONMENTAL WORRY BECAUSE THEY INCLUDE VOLATILE ORGANIC COMPOUNDS THAT CONTRIBUTE TO SMOG THOUGH AS A SOURCE OF VOCS AEROSOL CANS ARE DWARFED BY OTHER SOURCES MAINLY AUTO AND OTHER INDUSTRIAL PLANTS SO WHY SHOULDN'T CONSUMERS JUST SWITCH TO PUMPDRIVEN HAIR SPRAY AND ROLLON DEODORANT THEY DON'T DO IT AS WELL ARGUES MR MINOGUE THE AEROSOL IS THE BEST DELIVERY SYSTEM IN TERMS OF SANITARY CONDITIONS HE ADDS NOTING THAT MANY PEOPLE WHO SHARE AN AEROSOL DEODORANT WOULDN'T DREAM OF SHARING A ROLLON GAS UTILITIES YOU WOULD THINK KNOW EXACTLY WHAT HAPPENS TO THEIR PRODUCT WHEN IT REACHES OFFICES AND HOMES BUT THEY DON'T ON UNUSUALLY COLD DAYS IS THERE A POINT AT WHICH FURNACES CAN'T BOOST HEAT MORE EITHER BECAUSE OF LIMITS IN THE TECHNOLOGY OF FURNACES OR BECAUSE OF THE INEVITABLE WEAKNESSES IN A BUILDING'S INSULATION IN NATURAL GAS UTILITIES' PARLANCE THAT WOULD BE BENDOVER WHEN THE UPWARD SLOPE ON A GRAPH OF INCREASING GAS OUTPUT EVENTUALLY BENDS OVER AND STARTS TO FLATTEN OUT AS USERS ARE NO LONGER ABLE TO CONSUME MORE GAS IN THEIR FURNACES BUT NO ONE KNOWS WHETHER BENDOVER EXISTS IN REALITY OR MERELY IN THEORY SO LONG ISLAND LIGHTING WITH 19 LOCAL GAS COMPANIES HAS BEGUN THE NATURAL GAS PEAK DAY SENDOUT PROJECT TO FIND OUT THE STUDY LARGELY FUNDED BY LILCO WILL EXAMINE STATISTICAL DATA FROM THE COMPANIES ABOUT WHAT THEIR GAS SENDOUTS HAVE BEEN AT DIFFERENT TEMPERATURES ACCORDING TO JOHN LITTLE A MANAGEMENT CONSULTANT WITH RJ RUDDEN ASSOCIATES WHICH IS WORKING ON THE STUDY FOR LILCO THE STUDY'S FINDINGS COULD INFLUENCE GAS COMPANY PRACTICES IN THE FUTURE IF BENDOVER CONSISTENTLY OCCURS ON COLD DAYS GAS UTILITIES COULD REDUCE THEIR PURCHASE OF GAS FROM SUPPLIERS AND PIPELINES THEY ALSO COULD REDUCE THE AMOUNT OF PIPE THEY PUT INTO THE GROUND TO DELIVER TO THEIR CUSTOMERS IF BENDOVER DOESN'T EXIST ON THE OTHER HAND THEY MAY WANT TO PURCHASE MORE GAS AND LAY MORE PIPE IN THE GROUND TO DELIVER MORE GAS ON COLD DAYS MR LITTLE SAID THE STUDY WILL TAKE ABOUT A YEAR TO COMPLETE SEE RELATED LETTERS LETTERS TO THE EDITOR OZONE CFCS AND SCIENCE FICTION WSJ MARCH 24 1993 SEE RELATED LETTER LETTERS TO THE EDITOR NO WEAPONS RESEARCH WSJ APRIL 12 1993 9302170183 9303250175 9304120131 930412 REVIEW & OUTLOOK EDITORIAL GRUNGE STATE GOVERNOR THE STATE OF WASHINGTON WHICH NOT LONG AGO WAS THE TOAST OF THE NATION FOR ITS VIBRANT ECONOMY SHOWCASE CITY OF SEATTLE AND OTHER HALE DISTINCTIONS HAS WOKEN UP TO A TERRIBLE HANGOVER NOT THE LEAST PART OF THAT MORNINGAFTER HEADACHE IS THE GOVERNOR ELECTED LAST NOVEMBER MIKE LOWRY WAS A CONGRESSIONAL DEMOCRAT LONG CONSIDERED TOO FAR LEFT TO GET ELECTED STATEWIDE EVEN IN A TRADITIONALLY LIBERAL STATE BUT STILL IN THE GLOW OF FLUSH TIMES AND SWAYED BY MR LOWRY'S RAPPROCHEMENT WITH ESTABLISHED BUSINESS INTERESTS THE ELECTORATE TOOK A FLING IT IS HAVING REGRETS WITH THE ECONOMY SUDDENLY HOBBLED BY CUTBACKS AT BOEING AND OTHER STUMBLES AND STATE SPENDING ON ONE OF THE FASTEST TRACKS IN THE NATION GOVERNOR LOWRY SAYS HE'S GOT TO RAISE TAXES HE ESPECIALLY NEEDS TO DO SO GIVEN HIS CLINTONLIKE AGENDA FOR WASHINGTON WHICH INCLUDES A SWEEPING HEALTH PLAN TRANSIT INVESTMENT AND HIGHER PAY FOR SCHOOLTEACHERS HE WANTS TO EXTEND THE SALES TAX TO SERVICES WHICH OUGHT TO BE A BIG HELP TO THOSE LAIDOFF BOEING ENGINEERS TRYING TO START UP BUSINESSES HE WANTS TO RAISE THE ALREADY HIGH STATE GASOLINE TAX BY 20 CENTS A GALLON WHICH WITH FEDERAL AND LOCAL EXACTIONS COULD HAVE MOTORISTS PAYING ABOUT 10 IN LEVIES EVERY TIME THEY FILL UP HE WOULD HIT THE HEALTH CARE INDUSTRY AND THE SIN GOODS ALTHOUGH THE BEER AND WINE INDUSTRIES HAVE GOTTEN A PASS MR LOWRY HAS LOOKED IN ABOUT EVERY CORNER EXCEPT THE PERSONAL INCOME TAX WHICH WASHINGTON BLESSEDLY LACKS YOU CAN ASSUME THAT IS COMING DOWN THE ROAD BUT IN ITS ABSENCE YOU MIGHT BE INCLINED TO SAY THE GOVERNOR HAS AT LEAST SOUGHT REVENUE SOURCES LESS DAMAGING TO INVESTMENT THAN OTHERS HE COULD HAVE TRIED HE ACTUALLY PLANS TO CUT SOME BUSINESS TAXES YET SUCH SYMPATHY EVAPORATES WHEN YOU NOTE THAT IN ADDITION TO HIS NEW PROGRAMS HE PLANS TO INCREASE A STATE PAYROLL THAT GREW 50 SINCE 1980 BY MORE THAN 800 ADDITIONAL POSTS THE TAX PROTESTS ARE GAINING IN OLYMPIA AS CITIZENS WONDER WHY THEIR STATE IN DISTRESS CANNOT DO WHAT MASSACHUSETTS UNDER BILL WELD MICHIGAN UNDER JOHN ENGLER AND TO A LESSER EXTENT ARIZONA UNDER FIFE SYMINGTON HAVE DONE CONSTRAIN GOVERNMENT AND CUT TAXES LIFE WAS NEVER SUCH A PARTY IN PARTS OF WASHINGTON AND YOUTHS IN SOME OF SEATTLE'S REBELLIOUS QUARTERS TOOK TO A FASHION CALLED GRUNGE TO SHOW THEIR ANOMIE THE LOOK CAUGHT ON ACROSS THE NATION JUST AS HAVE THE AREA'S STARBUCKS ESPRESSO BARS WORN THREADS MAY SOON BE A NECESSITY FOR THE LOCALS BUT WITH THEIR BLEARY EYES UPON THE FISCAL MORN THEY MIGHT SKIP COFFEE FOR A BLOODY MARY VODKA TAX AND ALL 9304120130 930412 TECHNOLOGY WASHINGTON STATE HEALTHCARE PACKAGE SETS UP AN EARLY TEST FOR CLINTON IDEAS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL OLYMPIA WASH THE STATE OF WASHINGTON IS ABOUT TO ENACT ONE OF THE NATION'S MOST AMBITIOUS HEALTHCARE PLANS WHICH COULD PROVIDE AN EARLY TEST OF THE CLINTON ADMINISTRATION'S APPROACH THE PLAN WILL PROVIDE BASIC COVERAGE TO THE STATE'S 500000 UNINSURED RESIDENTS AND WILL TRY TO CONTAIN HEALTH COSTS BY REQUIRING MANAGED COMPETITION AMONG DOCTORS AND HOSPITALS AND BY IMPOSING CEILINGS ON HEALTH INSURANCE PREMIUMS THE STATE'S PLAN WHICH WILL COST 478 MILLION A YEAR WHEN IT IS FULLY IMPLEMENTED WAS PASSED 5642 BY WASHINGTON'S HOUSE OF REPRESENTATIVES AFTER 14 HOURS OF PARTY CAUCUSES BEHINDTHESCENES POLITICAL DICKERING AND OFTEN EMOTIONAL DEBATES REP DENNIS DELLWO CHAIRMAN OF A HOUSE COMMITTEE THAT LED THE FLOOR FIGHT SAID THE MEASURE CONTAINS MOST OF THE BASIC INGREDIENTS BEING DISCUSSED FOR NATIONWIDE APPLICATION BY THE CLINTON ADMINISTRATION THE PACKAGE WHICH IS SIMILAR TO A VERSION THAT PREVIOUSLY PASSED THE STATE'S SENATE WILL BEGIN IN JULY AND BE PHASED IN OVER FIVE YEARS DEMOCRATIC GOV MIKE LOWRY IS EXPECTED TO SIGN THE MEASURE AFTER THE TWO CHAMBERS RECONCILE THEIR DIFFERENCES THE LEGISLATION WILL BE FINANCED BY A PACKAGE OF NEW TAXES PRIMARILY STIFF INCREASES IN STATE TAXES ON CIGARETTES BEER WINE AND LIQUOR REP DELLWO SAID THE PRINCIPLE OF COST CONTROL GOES THROUGH THE WHOLE THING AND THAT MANY OF THE IDEAS IN THE BILL WERE INSPIRED BY THE SOCALLED JACKSON HOLE GROUP OF EXPERTS THAT IS ADVISING PRESIDENT CLINTON WE HAVE WRAPPED IN THIS ALL THOSE THEORIES THAT WE THINK WILL WORK SAID THE LEGISLATOR WHO DEFENDED THE SIN TAX INCREASES ON THE BASIS THAT ALCOHOL AND SMOKING CAUSE MAJOR HEALTH PROBLEMS REP DELLWO AND A PHALANX OF FELLOW DEMOCRATS HELD OFF A DETERMINED LOBBYING BLITZ BY BEER DISTRIBUTORS CIGARETTE MANUFACTURERS SMALL BUSINESS OWNERS AND HEALTH INSURERS WHO ARGUED THAT THE ECONOMIC EFFECTS OF THE MEASURE WILL BE HARMFUL WE'RE GOING WHERE NO STATE HAS GONE BEFORE IN REGARDS TO HEALTHCARE REFORM ARGUED REPUBLICAN REP CLYDE BALLARD I DON'T THINK MORE THAN 10 OF THE PEOPLE KNOW WHAT'S IN THIS BILL ASSERTED MR BALLARD REFERRING TO THE 137PAGE MEASURE THAT WILL CHANGE NEARLY EVERYTHING IN THE STATE'S HEALTHCARE INDUSTRY THE BILL ESTABLISHES A FIVEMEMBER COMMISSION APPOINTED BY THE GOVERNOR TO REGULATE HEALTH SERVICES IT WILL DESIGN A BASIC HEALTH BENEFITS PACKAGE THAT WILL BE AVAILABLE TO ALL STATE RESIDENTS AND SET A CEILING ON HEALTH INSURANCE PREMIUMS THAT WILL BE TIED TO THE RISE IN INDIVIDUAL INCOME IN THE STATE THE BILL WILL BROADEN THE POWERS OF THE STATE'S INSURANCE COMMISSIONER DEBORAH SENN ALLOWING HER TO SET UP 10 HEALTH INSURANCE PURCHASING COOPERATIVES WITH AT LEAST 100000 MEMBERS TO GIVE INDIVIDUALS AND SMALL BUSINESSES ADDED CLOUT IN BARGAINING FOR HEALTH COVERAGE PACKAGES FROM PRIVATE INSURERS THE INSURANCE COMMISSIONER WOULD ALSO OVERSEE REGULATIONS DESIGNED TO ENCOURAGE COSTCUTTING AND COMPETITION AMONG HEALTHCARE PROVIDERS THE BILL REQUIRES EMPLOYERS TO PAY AT LEAST 50 OF HEALTH INSURANCE PREMIUMS FOR WORKERS AND THEIR DEPENDENTS INCLUDING EMPLOYEES WHO WORK A MINIMUM OF 30 HOURS A WEEK THE WORKERS WOULD PAY THE REMAINDER BY JULY 1 1998 THE BILL WILL REQUIRE ALL STATE RESIDENTS TO ENROLL IN A STATECERTIFIED HEALTH INSURANCE PLAN HEALTH CARE FOR THE UNEMPLOYED WOULD BE SUBSIDIZED BY THE STATE THE ACTION IN WASHINGTON COMES AS SEVERAL OTHER STATES ARE ENACTING BROAD CHANGES TO THEIR HEALTH SYSTEMS JUST THIS MONTH FLORIDA PASSED A PLAN TO GIVE HEALTH INSURANCE TO ALL RESIDENTS OF THE STATE THROUGH REGIONAL PURCHASING NETWORKS SIMILAR TO MEASURES PRESIDENT CLINTON IS CONSIDERING THE MARYLAND LEGISLATURE LAST WEEK APPROVED COST CONTROLS ON DOCTORS' FEES AND CHANGES TO THE STATE'S INSURANCE LAWS TO MAKE COVERAGE CHEAPER FOR SMALL BUSINESSES 9304120129 930412 BUSINESS BRIEF MEDTRONIC SETS PLAN TO BUY BACK SHARES MINNEAPOLIS MEDTRONIC INC REACTED TO THE RECENT PLUNGE IN THE PRICE OF ITS STOCK BY ANNOUNCING A PLAN TO REPURCHASE UP TO THREE MILLION SHARES OR 51 OF ITS COMMON STOCK OUTSTANDING INVESTOR UNCERTAINTY SURROUNDING HEALTHCARE REFORM CAUSED MEDTRONIC STOCK TO WEAKEN LAST WEEK ENDING WITH A FALL OF 675 THURSDAY THAT PUSHED THE SHARES TO A 52WEEK LOW OF 5325 MEDTRONIC IS THE WORLD'S LARGEST MAKER OF PACEMAKERS AND INDUSTRY EXPERTS FEAR THAT MANY PACEMAKERIMPLANT PROCEDURES MIGHT BE DEEMED UNNECESSARY IN A REFORM OF THE US HEALTHCARE SYSTEM IN A STATEMENT MEDTRONIC'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WILLIAM W GEORGE SAID HE IS CONFIDENT THAT THE COMPANY WILL COMPLETE ITS FISCAL YEAR ENDING APRIL 30 WITH SOLID GROWTH IN REVENUE AND EARNINGS PER SHARE IN THE FOURTH QUARTER AND FULL YEAR MR GEORGE SAID THE COMPANY'S NEW TACHYARRHYTHMIA DEVICE A TYPE OF PACEMAKER IS GAINING ACCEPTANCE BY PHYSICIANS AND SALES OF NEW PACEMAKERS AND CATHETERS ARE INCREASING ATTEMPTING TO RESTORE CONFIDENCE IN THE COMPANY'S STOCK MR GEORGE SAID THAT HE ANTICIPATES CONTINUING SOUND GROWTH IN REVENUES AND EARNINGS PER SHARE THE COMPANY IS CONFIDENT OF ITS ABILITY TO COMPETE EFFECTIVELY IN A CHANGING WORLD HEALTHCARE ENVIRONMENT HE SAID MEDTRONIC SHARES HAVE LOST MORE THAN HALF THEIR VALUE SINCE HITTING A 52WEEK HIGH OF 10450 THE STOCK'S MOST SERIOUS DECLINE BEGAN IN FEBRUARY 9304120128 930412 POLITICS & POLICY REP FORD IS FOUND NOT GUILTY IN TRIAL OVER PAYMENTS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL THE RACIALLY CHARGED TRIAL OF REP HAROLD FORD ENDED FRIDAY WHEN THE TENNESSEE DEMOCRAT WAS FOUND NOT GUILTY OF TAKING IMPROPER PAYMENTS FROM TWO FORMER BANKERS WHO WERE POLITICAL ALLIES A FEDERALCOURT JURY IN MEMPHIS TENN ACQUITTED MR FORD OF CHARGES THAT HE TOOK 12 MILLION IN BOGUS LOANS THAT ACCORDING TO THE CHARGES WERE PAYOFFS FROM BANKS CONTROLLED BY JAKE AND CH BUTCHER THE BUTCHER BROTHERS' BANKS FAILED IN 1983 AND THE BUTCHERS WENT TO PRISON FOR FRAUD MR FORD WHO IS BLACK AND REPRESENTS THE PREDOMINANTLY BLACK CITY OF MEMPHIS ACCUSED FEDERAL PROSECUTORS OF SEEKING TO PUNISH HIM BECAUSE OF HIS RACE A CHARGE PROSECUTORS DENIED TENNESSEE'S ONLY BLACK MEMBER OF CONGRESS MR FORD WAS ACQUITTED BY A JURY OF 11 WHITES AND ONE BLACK THE JURORS WERE BUSED INTO MEMPHIS FROM LARGELY RURAL WHITE COUNTIES OUTSIDE OF THE CITY IT WAS MR FORD'S SECOND TRIAL ON THE CHARGES THE FIRST ONE ENDED IN A MISTRIAL WHEN A JURY DRAWN FROM MEMPHIS AND MADE UP OF EIGHT BLACKS AND FOUR WHITES FAILED TO REACH A VERDICT A FEDERAL JUDGE THEN ORDERED THAT A NEW JURY BE PICKED FROM OUTSIDE OF THE CITY BECAUSE OF THE PUBLICITY AND CONTROVERSY SURROUNDING THE FIRST TRIAL THE NEW ARRANGEMENT IN WHICH THE JURY WAS DRAWN FROM A LARGE WHITE JURISDICTION WAS ALSO CONTROVERSIAL AND THE CONGRESSIONAL BLACK CAUCUS TO WHICH MR FORD BELONGS PROTESTED TO THE CLINTON ADMINISTRATION STUART GERSON THEN ACTING ATTORNEY GENERAL ORDERED PROSECUTORS TO REVERSE THEIR POSITION AND SEEK YET ANOTHER NEW JURY FOR THE RETRIAL ULTIMATELY MR GERSON REVERSED THE GOVERNMENT'S POSITION A SECOND TIME AND THE TRIAL PROCEEDED ALSO ACQUITTED IN THE TRIAL WERE MR FORD'S CODEFENDANTS DOUGLAS BEATY AND KARL SCHLEDWITZ FORMER LAWYERS FOR THE BUTCHERS WHO WERE CHARGED WITH CONSPIRACY TO COMMIT BANK AND MAIL FRAUD WE HAD GOOD CITIZENS ON THIS JURY WHO DIDN'T FALL FOR WHAT THE GOVERNMENT WAS GIVING OUT REP FORD SAID FRIDAY ACCORDING TO THE ASSOCIATED PRESS I AM SO HAPPY FOR EVERYBODY 9304120127 930412 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT BAROID CORP 125 MILLION OF SENIOR NOTES VIA SALOMON BROTHERS INC BHC FINANCIAL INITIAL 21 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES DOSKOCIL COS 100 MILLION OF SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH & CO EAGLE FOOD CENTERS INC 100 MILLION OF SENIOR NOTES VIA GOLDMAN SACHS & CO GEON CO INITIAL 13 MILLION COMMON SHARES VIA GOLDMAN SACHS INTERACTIVE NETWORK INC 25 MILLION COMMON SHARES VIA PAINEWEBBER INC PAYLESS CASHWAYS INC 200 MILLION OF SENIOR SUBORDINATED NOTES VIA GOLDMAN SACHS QUANTUM CHEMICAL CORP 250 MILLION OF FIRST MORTGAGE NOTES VIA DILLON READE & CO SANMINA HOLDINGS INC INITIAL 2950000 COMMON SHARES VIA MONTGOMERY SECURITIES TRIDENT NGL INC 105 MILLION OF SUBORDINATED NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP BALTIMORE COUNTY MD 645 MILLION OF VARIOUS REFUNDING BONDS VIA COMPETITIVE BID CLARK COUNTY SCHOOL DISTRICT NEV 3145 MILLION OF VARIOUS LIMITEDTAX BONDS VIA COMPETITIVE BID BRAZOS RIVER AUTHORITY TEXAS 140 MILLION OF REVENUE AND REFUNDING BONDS VIA A GOLDMAN SACHS GROUP CLEVELAND OHIO 100 MILLION OF REFUNDING AND NEWMONEY GENERAL OBLIGATION BONDS VIA A MERRILL LYNCH GROUP CONNECTICUT 50 MILLION OF GENERAL OBLIGATION ZEROCOUPON BONDS VIA A MERRILL LYNCH GROUP KENTUCKY TURNPIKE AUTHORITY 560 MILLION OF REVENUE AND REFUNDING BONDS VIA A MERRILL LYNCH GROUP NEW JERSEY HEALTH CARE FACILITIES FINANCE AUTHORITY 66 MILLION OF SERIES 1993 REVENUE BONDS VIA A FIRST FIDELITY SECURITIES GROUP SACRAMENTO MUNICIPAL UTILITY DISTRICT CALIF 490 MILLION OF REVENUE AND REFUNDING BONDS VIA A GOLDMAN SACHS GROUP VIRGINIA BEACH VA 165 MILLION OF GENERAL OBLIGATION PUBLIC IMPROVEMENT REFUND ING AND NEWMONEY BONDS VIA A GOLDMAN SACHS GROUP WAYNE STATE UNIVERSITY MICH 82 MILLION GENERAL REVENUE BONDS VIA A JOHN NUVEEN & CO INC GROUP 9304120126 930412 WHO'S NEWS MORE CEOS PREFER OUTSIDERS ON BOARDS A STUDY INDICATES BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A GROWING NUMBER OF CHIEF EXECUTIVE OFFICERS OF BIG US COMPANIES PREFER BOARDS COMPRISED SOLELY OF OUTSIDE DIRECTORS PLUS THEMSELVES ABOUT 40 OF 327 CEOS SURVEYED LAST YEAR BY RECRUITERS KORN/FERRY INTERNATIONAL SAID THEY PREFERRED BEING THE ONLY INSIDE BOARD MEMBER JUST 106 OF CHIEF EXECUTIVES FAVORED HAVING ONLY ONE INSIDER IN A SIMILAR 1991 POLL BY KORN/FERRY IN THAT SURVEY A MAJORITY OF CEOS SAID AN IDEAL BOARD CONSISTED OF THREE INSIDERS AND NINE OUTSIDERS THE LATEST FINDINGS APPARENTLY REFLECT CEOS' RESPONSE TO SHAREHOLDER DEMANDS THAT BOARDS BE MORE INDEPENDENT LOOK AT THE ATTENTION THAT'S BEING PLACED ON CORPORATE GOVERNANCE TODAY SAYS MICHAEL BOXBERGER A KORN/FERRY MANAGING DIRECTOR CEOS ARE REALIZING THERE'S A SIGNIFICANT DOWNSIDE TO HAVING INSIDERS ON THE BOARD BESIDES THEMSELVES BECAUSE INSIDERS TEND TO BE RUBBER STAMPS REALITY HAS YET TO CATCH UP WITH CORPORATE CHIEFS' CHANGING ATTITUDES HOWEVER THE AVERAGE BOARD STILL CONSISTS OF THREE INSIDE AND NINE OUTSIDE MEMBERS THE NEW KORN/FERRY SURVEY FOUND THAT PROPORTION REMAINS UNCHANGED FROM 1991 THE CEO IS THE BOARD'S SOLE INSIDER AT ONLY 133 OF 805 COMPANIES ACCORDING TO AN ANALYSIS BY DIRECTORSHIP A NEWSLETTER IN WESTPORT CONN IF ONE COUNTS A COMPANY'S FORMER EXECUTIVES ON A BOARD AS INSIDE DIRECTORS WHICH KORN/FERRY DOESN'T THE TALLY DROPS TO 71 FIVE YEARS FROM NOW YOU'LL SEE THE ACTION LIVING UP TO THE ATTITUDE OF THE LARGE MINORITY OF CEOS IN THE LATEST SURVEY MR BOXBERGER PREDICTS DIRECTOR FEES HAVE ALSO INCREASED IN 1992 A DIRECTOR'S TOTAL COMPENSATION AVERAGED 34276 ABOUT 34 MORE THAN 33133 IN 1991 KORN/FERRY'S NEWEST SURVEY CONCLUDED THE YEAREARLIER FIGURE HAD RISEN 24 FROM THE 1990 LEVEL 9304120125 930412 INTERNATIONAL ISRAEL CONSIDERS ECONOMIC SPLIT FROM TERRITORIES BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV THE ISRAELI CABINET DECIDED TO KEEP THE OCCUPIED TERRITORIES CLOSED INDEFINITELY AND PRIME MINISTER YITZHAK RABIN PRESENTED A PLAN TO REDUCE THE NUMBER OF PALESTINIANS WORKING IN ISRAEL WHEN THE BORDERS ARE REOPENED SINCE THE DECISION MORE THAN A WEEK AGO TO BAR PALESTINIANS IN THE WEST BANK AND THE GAZA STRIP FROM ENTERING ISRAEL TO WORK MR RABIN AND HIS CABINET MEMBERS HAVE SPOKEN REPEATEDLY OF CREATING AN ECONOMIC SEPARATION BETWEEN ISRAEL AND THE TERRITORIES IT CAPTURED IN THE 1967 WAR BUT YESTERDAY THE MINISTERS BEGAN TO ACKNOWLEDGE THAT IMPLEMENTING SUCH A SEPARATION WILL BE COSTLY AND ECONOMICALLY PAINFUL THEY ARE SPEAKING MORE MODESTLY ABOUT THE CHANCES FOR SUCCESS LABOR AND SOCIAL AFFAIRS MINISTER ORA NAMIR TOLD ISRAELI ARMY RADIO I WILL SEE IT AS A MAJOR SUCCESS IF IN THE FIRST STAGE WE ARE ABLE TO REPLACE 10000 WORKERS FROM THE TERRITORIES WITH UNEMPLOYED ISRAELIS MR RABIN SAYS HE BELIEVES ECONOMIC SEPARATION IS THE ONLY WAY TO ENSURE THE SECURITY OF ISRAELIS AND THEREBY GIVE THEM ENOUGH CONFIDENCE TO CONTINUE PEACE TALKS WITH THE PALESTINIANS AND EVENTUALLY TO MAKE TERRITORIAL CONCESSIONS HIS PLAN CALLS FOR A REDUCTION OF PALESTINIAN WORKERS TO ABOUT 70000 FROM 110000 WHEN THE TERRITORIES ARE REOPENED HIS ATTEMPT TO REDUCE THE NUMBER COLLIDES WITH THE DEPENDENCE BY MANY SECTORS OF THE ISRAELI ECONOMY ON LOWERPRICED ARAB WORKERS TO PERFORM MENIAL TASKS THAT MOST ISRAELIS SHUN THE CABINET AGREED TO ALLOW AN ADDITIONAL 7000 PALESTINIANS TO RETURN TO THEIR JOBS IN AGRICULTURE FARMERS HAD COMPLAINED THAT 200000 TONS OF CITRUS REMAIN ON THE TREES AND ARE IN DANGER OF ROTTING THE CONTRACTORS ASSOCIATION WHICH LAUNCHED A DRIVE TO REPLACE ALL OF THE 60000 PALESTINIANS WORKING IN CONSTRUCTION HAS NOW ASKED THE GOVERNMENT TO ALLOW 20000 PALESTINIAN WORKERS TO RETURN TO THEIR JOBS IN THE INDUSTRY THE GOVERNMENT AGREED TO FUND A SIXMONTH TRAINING PROGRAM FOR ISRAELIS INTERESTED IN CONSTRUCTION WORK THE CABINET VOTED TO INCREASE FUNDING FOR JOB CREATION IN THE TERRITORIES FROM 130 MILLION SHEKELS 481 MILLION TO 490 MILLION SHEKELS THIS YEAR IN AN EFFORT TO CREATE 25000 NEW JOBS WITHIN THE WEST BANK AND THE GAZA STRIP THE GOVERNMENT WILL ALSO PROVIDE AN UNSPECIFIED AMOUNT OF FINANCIAL AID TO UNEMPLOYED PALESTINIANS HISHAM AWARTANI AN ECONOMICS PROFESSOR AT ANNAJAH UNIVERSITY IN NABLUS SAID MR RABIN'S PLAN WON'T SUCCEED THIS IS NOT A QUESTION OF ASPIRIN BUT A MAJOR SURGICAL OPERATION THAT REQUIRES TIME EVEN WITH ALL THE GOODWILL THE ISRAELIS HAVE AND EVEN THAT IS UNDER QUESTION THIS IS AN ASSIGNMENT THAT GOES WAY BEYOND THEIR MEANS IT COSTS 25000 TO CREATE ONE NEW JOB AND THEY NEED TO GENERATE FIFTY SIXTY OR SEVENTY THOUSAND HE SAID IT IS IN THE INTEREST OF THE ISRAELIS TO LET THINGS GO BACK TO THE WAY THEY WERE BEFORE THE CLOSURE WHILE THEY TAKE THE TIME TO DO THE PROPER HOMEWORK AND WORK WITH THE PALESTINIANS AND INTERNATIONAL ORGANIZATIONS ON HOW TO GENERATE LOCAL EMPLOYMENT IN THE INTERIM PERIOD THERE IS NO OTHER ALTERNATIVE BUT TO LET THE PALESTINIANS GO BACK TO WORK HE SAID ACCORDING TO A SOONTOBEPUBLISHED STUDY BY MIDDLE EASTERN ECONOMIES EXPERT GIL FEILER PALESTINIAN ECONOMIC DEPENDENCE ON ISRAEL WILL ONLY CONTINUE TO GROW THE PERSIAN GULF STATES SUFFERING FROM A DECREASE IN OIL REVENUES HAVE CUT BACK THEIR FOREIGN WORK FORCES JORDAN IS OVERPOPULATED AND SUFFERS FROM HIGH UNEMPLOYMENT AND THE FLOW OF MONEY INTO THE TERRITORIES FROM THE PALESTINIAN LIBERATION ORGANIZATION SLOWED DOWN AFTER MANY ARAB STATES SLASHED DONATIONS IN REACTION TO PALESTINIAN SUPPORT FOR IRAQ DURING THE PERSIAN GULF WAR CLOSE TO HALF OF THE POPULATION IN THE WEST BANK AND THE GAZA STRIP IS UNDER THE AGE OF 14 AND THE LABOR FORCE CONTINUES TO EXPAND BY 14 IN 1991 AND 6 THE YEAR BEFORE EVEN AT THE HEIGHT OF THE PALESTINIAN INTIFADA OR UPRISING 45 OF THE LABOR FORCE LIVING IN THE GAZA STRIP CONTINUED TO WORK IN ISRAEL ACCOUNTING FOR 55 OF THE STRIP'S TOTAL INCOME TOTAL ECONOMIC SEPARATION WRITES MR FEILER OF BARILAN UNIVERSITY WILL CAUSE A 50 RISE IN UNEMPLOYMENT IN THE TERRITORIES BRINGING WITH IT ECONOMIC AND SOCIAL DISASTER UNLESS HUGE INVESTMENTS ARE MADE TO CREATE A MINIMUM OF 130000 NEW JOBS A KEY PART OF THE RABIN PACKAGE WILL BE TRYING TO CHANGE ISRAELI ATTITUDES TOWARD EMPLOYING PALESTINIANS STARTING YESTERDAY ADVERTISEMENTS BEGAN APPEARING ON TELEVISION WARNING ISRAELI EMPLOYERS THAT ALL PALESTINIAN WORKERS MUST BE LICENSED WITH THE GOVERNMENT EMPLOYMENT OFFICE AND PAID THE MINIMUM WAGE OF 688 SHEKELS 247 AN HOUR ISRAELI EMPLOYERS MS NAMIR TOLD AN ISRAELI NEWSPAPER HAVE GOTTEN USED TO CHEAP LABOR AND WE CAN'T CHANGE THIS ATTITUDE AT ONCE 9304120124 930412 HYUNDAI GETS SHIP ORDER SEOUL SOUTH KOREA HYUNDAI HEAVY INDUSTRIES CO SAID IT SIGNED CONTRACTS WITH TWO HONG KONGBASED SHIPPING COMPANIES TO BUILD TWO 2200TWENTY EQUIVALENT UNIT CONTAINER SHIPS FOR 80 MILLION ACCORDING TO A HYUNDAI SPOKESMAN HYUNDAI SIGNED THE CONTRACT WITH EVERSMART SHIPPING LTD AND WELLDRAGON SHIPPING LTD HYUNDAI WILL DELIVER THE SHIPS IN EARLY 1995 9304120123 930412 GOODYEAR TO EXPAND PLANT AKRON OHIO GOODYEAR TIRE & RUBBER CO CITING GROWING TIRE DEMAND ANNOUNCED A 225 MILLION EXPANSION OF ITS PLANT IN KUALA LUMPUR MALAYSIA THE PROJECT WILL BOOST CAPACITY MORE THAN 20 AS A MATTER OF POLICY GOODYEAR WON'T REVEAL PLANT CAPACITIES THE COMPANY SAID IT ALREADY IS CONSIDERING A SECOND 225 MILLION EXPANSION IN TWO YEARS 9304120122 930412 MARK CONTROLS GETS BUYOUT OFFER FROM MAJOR SHAREHOLDER WASHINGTON ONE OF MARK CONTROLS CORP'S BIGGEST STOCKHOLDERS PROPOSED TO BUY THE NEARLY 91 OF THE COMPANY IT DOESN'T CURRENTLY HOLD FOR 442 MILLION OR AN INDICATED 910 A PRIMARY SHARE IN A FRIDAY FILING WITH THE SECURITIES AND EXCHANGE COMMISSION EUCALYPTUS INVESTMENTS LTD SAID IT SENT A LETTER TO MARK CONTROLS CONFIRMING A BID A EUCALYPTUS REPRESENTATIVE MADE AT A THURSDAY MEETING WITH WILLIAM E BENDIX MARK CONTROLS' PRESIDENT AND CHIEF EXECUTIVE THE FILING DIDN'T LIST ANY PERSHARE PRICE IN THE PROPOSED ACQUISITION A CALCULATION BASED ON THE NUMBER OF SHARES OUTSTANDING TAKES INTO ACCOUNT MARK CONTROLS' OPTIONS OUTSTANDING COVERING 310904 SHARES WITH EXERCISE PRICES BELOW 8 EUCALYPTUS DESCRIBED ITSELF IN THE SEC FILING AS AN INVESTMENT CONCERN BASED IN THE BRITISH VIRGIN ISLANDS THE CONTACT LISTED AT THE FILING DIDN'T RETURN A PHONE CALL FRIDAY IN SKOKIE ILL MARK CONTROLS SAID ON SUNDAY THAT ITS BOARD DETERMINED THE EUCALYPTUS PROPOSAL IS NOT IN THE BEST INTEREST OF THE COMPANY OR ITS SHAREHOLDERS THE COMPANY CONTENDS THAT ITS STRATEGIES FOR DEVELOPMENT WOULD PRODUCE HIGHER VALUE FOR SHAREHOLDERS AS A RESULT MARK CONTROLS SAID IT DOESN'T PLAN TO ENGAGE IN ANY FURTHER DISCUSSION REGARDING THIS PROPOSAL AT THE THURSDAY MEETING THE FILING SAID EUCALYPTUS'S REPRESENTATIVE PETER JACULLO EXPRESSED TO MR BENDIX CONCERN WITH RESPECT TO THE STRATEGIC DIRECTION OF THE COMPANY AND THE HIGH LEVEL OF GENERAL AND ADMINISTRATIVE EXPENSES AT MARK CONTROLS EUCALYPTUS SAID IT THINKS MARK SHOULD SELL ITS VALVE BUSINESS AND FOCUS ON ITS PROCESSCONTROLS LINE EUCALYPTUS'S 462249 COMMON SHARES REPRESENT A 92 STAKE IN MARK CONTROLS THE DISCLOSURE CAME ON FRIDAY WHEN THE MARKET WAS CLOSED MARK CONTROLS SHARES CLOSED IN NATIONAL OVERTHECOUNTER MARKET TRADING THURSDAY EVENING OFF 25 CENTS AT 775 A SHARE 9304120121 930412 CORPORATE FOCUS BOISE CASCADE MAY BE OUT OF THE WOODS IN FIRST PERIOD LOSS TO BE NARROWER THAN EXPECTED AND PAPER IS POISED FOR REBOUND BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL BOISE IDAHO AFTER STUMBLING AROUND IN THE WOODS FOR THE LAST THREE YEARS BOISE CASCADE CORP MAY FINALLY BE ON ITS WAY BACK TO HIGH GROUND JOHN FERY BOISE CASCADE'S LONGTIME CHAIRMAN AND CHIEF EXECUTIVE SAYS HIS BIG FOREST PRODUCTS COMPANY'S PAPER BUSINESS WHICH HAS DRAGGED THE CONCERN DOWN WHILE RIVALS FLOURISHED ON SOARING TIMBER PRICES TOUCHED BOTTOM IN THE FIRST QUARTER NOW MR FERY SAYS BOISE CASCADE IS ON THE REBOUND AND SHOULD BETTER ANALYSTS' ESTIMATES WHEN IT RELEASES ITS FIRSTQUARTER RESULTS TOMORROW BOISE CASCADE EXPECTS TO SHOW A FIRSTQUARTER LOSS OF BETWEEN 11 MILLION AND 13 MILLION OR 58 CENTS TO 63 CENTS A SHARE THAT COMPARES WITH A YEARAGO FIRSTQUARTER LOSS OF 43 MILLION OR 130 A SHARE BEFORE NONRECURRING ITEMS THE COMPANY'S PROJECTED LOSS INCLUDES A ONETIME GAIN OF 86 MILLION OR 14 CENTS A SHARE FROM A STOCK SALE THAT STILL MAKES THE FIRSTQUARTER LOSS NARROWER THAN ANALYSTS' LOSS EXPECTATIONS WHICH AVERAGED 86 CENTS A SHARE AND THOUGH MR FERY DECLINES TO PREDICT WHEN BOISE CASCADE WILL MAKE IT OUT OF THE RED COMPANY OFFICIALS PRIVATELY TALK OF PROFITS FLOWING BY YEAR'S END IF BOISE CASCADE IS NEARING THE END OF ITS LONG ROAD MR FERY AND HIS BOARD HAVE GATHERED PLENTY OF CRITICS ALONG THE WAY LOUIS LOWENSTEIN PROFESSOR OF FINANCE AND LAW AT COLUMBIA UNIVERSITY SAYS HE SOMETIMES CITES BOISE CASCADE'S BOARD TO HIS CLASSES AS AN EXAMPLE OF INEPT GOVERNANCE DR LOWENSTEIN IS ESPECIALLY CRITICAL OF THE BOARD FOR PERMITTING BIG CAPITAL INVESTMENTS IN PAPERMAKING FACILITIES AFTER THE INDUSTRY STARTED ITS NOSE DIVE IN 1989 THE INVESTMENTS BOOSTED BOISE CASCADE'S DEBT TO 22 BILLION AS REVENUE AND EARNINGS WERE FALLING COMPLAINS DR LOWENSTEIN I THINK THEY THINK THEY'RE IN THE BUSINESS OF MAKING PAPER NOT MONEY HE SAYS DESPITE THE FIERCE CRITICISM FOR ITS ROLE AS INDUSTRY LAGGARD MR FERY INSISTS BOISE CASCADE WAS ON THE RIGHT TRACK ALL ALONG IN SEPTEMBER CALIFORNIA'S PUBLIC EMPLOYEE RETIREMENT SYSTEM SENT A SCATHING REPORT ON BOISE CASCADE'S PERFORMANCE AND CALLED THE OUTLOOK FOR THE COMPANY'S PROFITABILITY DURING THE NEXT TWO YEARS BLEAK IN A LETTER TO MR FERY THE 70 BILLION INVESTMENT FUND SHARPLY CRITICIZED THE COMPANY'S BOARD AND MANAGEMENT THEY WERE PART OF THE BOTTOM 12 OF OUR FAILING 50 SAYS RICHARD KOPPES CALPERS GENERAL COUNSEL MR FERY JOURNEYED TO CALPERS'S SACRAMENTO HEADQUARTERS IN OCTOBER TO EXPLAIN BOISE CASCADE'S POSITION WHAT CALPERS GOT RIGHT HE NOW SAYS IS THIS COMPANY IS LOSING MONEY WHAT THEY NEEDED HELP WITH IS WHY WE'RE HAVING THIS DIFFICULTY BOISE CASCADE'S TROUBLES STEM FROM THE PULP AND PAPER INDUSTRY'S UNUSUALLY SEVERE DOWNTURN WHICH BEGAN IN 1989 JUST AS THE COMPANY WAS STARTING TO INVEST 22 BILLION IN ADDITIONAL PAPERMAKING CAPACITY HIT HARDEST BY THE SLUMP WERE NEWSPRINT AND UNCOATED FREESHEET PAPERS THE TWO PAPER GRADES WHERE BOISE CASCADE IS MOST HEAVILY COMMITTED PRICE SWINGS ARE NOTHING NEW FOR THE PAPER INDUSTRY WHAT WAS NEW SAYS MR FERY WAS THE DEPTH AND LENGTH OF THE RECESSION FOR EXAMPLE SINCE 1989 PRICES FOR THE COMPANY'S UNCOATED FREESHEET PAPER FELL 40 NEARLY 350 A TON REACHING RECORD LOWS EARLY THIS YEAR FERY DESCRIBES THE UNCOATED FREESHEET DECLINE AS THE WORST IN MY 35 YEARS IN THE BUSINESS NEWSPRINT WHICH MAKES UP ABOUT 24 OF BOISE CASCADE'S PAPER BUSINESS LOST ANOTHER 165 A TON IN PRICE OVER THE LAST FOUR YEARS COMPANY OFFICIALS SAY DEMAND FOR THEIR PAPER HAS STARTED TO GROW AS THE ECONOMY HAS FIRMED BOISE CASCADE BOOSTED ITS UNCOATED FREESHEET PRICE NEARLY 60 A TON IN JANUARY AND IT EXPECTS ANOTHER 40 A TON INCREASE LATER THIS MONTH MORE PRICE INCREASES ARE LIKELY LATER THIS YEAR IF THE ECONOMIC RECOVERY STAYS STRONG MR FERY SAYS THOSE INCREASES SHOULD BOOST BOISE CASCADE'S RESULTS IF THEY STICK RECOUPING EVEN HALF OF THE LOST UNCOATED FREESHEET AND NEWSPRINT PRICE WOULD ADD ABOUT 275 MILLION IN PRETAX INCOME BUT SOME ANALYSTS REMAIN SKEPTICAL BOISE CASCADE WILL SHED ITS LOSSES ANY TIME SOON PAPER INDUSTRY PROFITS GENERALLY LAG BEHIND THE OVERALL ECONOMY SAYS DANIEL NELSON AN ANALYST WITH RAGEN MACKENZIE INC THERE'S NO MIRACLE CURE THAT GETS YOU AN EXTRA 200 A TON ON THOSE TWO GRADES HE SAYS YOU NEED MORE THAN WHAT WE'VE SEEN FOR A BONA FIDE RECOVERY ALSO AFFECTED WHILE PAPER HAS BEEN BOISE CASCADE'S WILDEST RIDE ITS TWO OTHER BUSINESS SEGMENTS HAVE ALSO HAD THEIR SHARE OF THRILLS THE COMPANY DUMPED THE WHOLESALE END OF ITS OFFICE PRODUCTS BUSINESS IN JANUARY OF LAST YEAR SO IT COULD CONCENTRATE ON DIRECT SALES TO BIG CUSTOMERS LIKE INTERNATIONAL BUSINESS MACHINES CORP BOEING CO AND UAL CORP'S UNITED AIRLINES THAT PULLED DOWN SALES TO 670 MILLION FROM ABOUT 1 BILLION FOR A UNIT THAT ACCOUNTED FOR 17 OF OVERALL COMPANY SALES LAST YEAR MR FERY SAYS SALES AND PROFIT FROM BOISE CASCADE'S OFFICE PRODUCTS UNIT SHOULD BE FLAT DURING THE SECOND QUARTER A TRADITIONALLY SLOW PERIOD BUT WILL GROW FOR THE ENTIRE YEAR COMPANY OFFICIALS PREDICT THE UNIT'S SALES SHOULD MATCH PRE1991 LEVELS IN ANOTHER TWO TO FOUR YEARS WITH ALMOST THREE MILLION ACRES OF ITS OWN TIMBER AND ANOTHER 33 MILLION ACRES OF LEASED TIMBERLAND MOSTLY IN CANADA BOISE CASCADE SEEMS WELL POSITIONED TO TAKE ADVANTAGE OF THE TIMBER PRICE BOOM THE COMPANY SUPPLIES ABOUT HALF OF ITS WOOD FIBER NEEDS FROM ITS OWN FORESTS LAST YEAR BUILDING PRODUCTS ACCOUNTED FOR ABOUT A THIRD OF BOISE CASCADE'S SALES WHILE LUMBER PRICES SOARED NEARLY 50 IN THE LAST THREE MONTHS OF 1992 THEY BEGAN TAILING OFF IN MARCH MR FERY PREDICTS SECONDQUARTER PROFITS FROM BUILDING PRODUCTS WON'T MATCH THE PAST GROWTH SPURT AND ARE LIKELY TO DECLINE FROM THE FIRST QUARTER THAT PUTS THE BURDEN OF ANY REBOUND SQUARELY ON BOISE CASCADE'S PAPER BUSINESS IT IS THERE SAYS MR FERY THAT THOSE HEAVILY CRITICIZED CAPITAL INVESTMENTS OF THE LAST THREE YEARS SHOULD BEGIN TO MAKE A DIFFERENCE BY BOOSTING PRODUCTION AND CUTTING COST I'M NOT SMART ENOUGH TO PREDICT A RECESSION SAYS THE 63YEAROLD CHAIRMAN BUT I WOULD HAVE SPENT THE MONEY IN ANY EVENT THOSE MILLS HAD TO BE MODERNIZED AND WHEN WE COME OUT OF THIS WE'LL HAVE A BETTER COST STRUCTURE AND MORE PRODUCT TO SELL 9304120120 930412 WHO'S NEWS COLGATE GIVES CEO OPTIONS TO BUY ONE MILLION SHARES BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COLGATE PALMOLIVE CO AWARDED ITS CHIEF EXECUTIVE OFFICER REUBEN MARK OPTIONS TO BUY ONE MILLION SHARES OF COLGATE'S STOCK THE AWARD CONSIDERED ONE OF THE MOST GENEROUS GRANTS TO A CHIEF EXECUTIVE THIS YEAR IS TIGHTLY PEGGED TO CONTINUING GAINS IN COLGATE'S STOCK PRICE WHICH HAS BEEN HOVERING AROUND 60 A SHARE MR MARK WON'T REALIZE PROFITS UNLESS COLGATE'S STOCK INCREASES SUBSTANTIALLY IN VALUE ON THE OTHER HAND IF COLGATE'S SHARES CONTINUE TO PERFORM AS WELL AS THEY HAVE OVER THE PAST FIVE YEARS THE OPTIONS COULD BE VALUED AT FAR MORE THAN THE 75 MILLION MR MARK EARNED IN 1992 THE GRANT WHICH REPLACES ANY GIFTS THAT WOULD HAVE BEEN MADE BETWEEN 1993 AND 1998 ALSO SETS A STRICT DEADLINE IF COLGATE'S STOCK DOESN'T APPRECIATE IN THE NEXT SIX YEARS THE OPTIONS WOULD EXPIRE WORTHLESS IF THE STOCK REACHES 8920 OR MORE BEFORE THE END OF SIX YEARS THE DEADLINE IS EXTENDED ANOTHER TWO YEARS IF THE STOCK HITS 10035 THE OPTIONS WON'T EXPIRE FOR ANOTHER FOUR YEARS EXECUTIVE COMPENSATION EXPERTS SAY LARGE OFFERINGS OF PREMIUM STOCK OPTIONS SUCH AS THE ONE MR MARK IS GETTING ARE BECOMING INCREASINGLY POPULAR BECAUSE THEY REWARD THE EXECUTIVE WITHOUT STIRRING THE KIND OF CONTROVERSY THAT CASH OR AN OUTRIGHT GIFT OF STOCK CAN TRIGGER COCACOLA CO PROVOKED A STORM OF NEGATIVE PUBLICITY WHEN IT GAVE ONE MILLION SHARES OF RESTRICTED STOCK IN 1991 THEN VALUED AT ABOUT 81 MILLION TO ITS CHAIRMAN ROBERTO C GOIZUETA TWO YEARS AGO SUCH OPTIONS WERE EXTREMELY RARE SAYS PEARL MEYER A NEW YORK EXECUTIVE COMPENSATION CONSULTANT THIS IS ONE OF THE TRENDS WHICH INVOLVES RAISING THE THRESHOLD AT WHICH EXECUTIVES CAN BENEFIT BUT ALSO INCREASING THEIR LEVERAGE WHAT YOU'RE SEEING HERE IS THE INTRODUCTION OF HIGH PAY FOR HIGH PERFORMANCE SINCE MR MARK TOOK OFFICE IN EARLY 1984 COLGATE'S STOCK HAS GROWN AT AN AVERAGE COMPOUND RATE OF 20 ANNUALLY WALL STREET ANALYSTS WHOSE RECOMMENDATIONS HAVE HELPED DRIVE COLGATE'S STOCK TO ALLTIME HIGHS SAID THE GIFT IS WELLDESERVED REUBEN MARK HAS DONE A TERRIFIC JOB AT COLGATE AND THE COMPANY HAS EXCEEDED ALL EXPECTATIONS SAYS DEEPAK RAJ AN ANALYST AT MERRILL LYNCH & CO 9304120119 930412 DONG WON JOINT VENTURE SEOUL SOUTH KOREA DONG WON INDUSTRY CO HAS ENTERED A 20 MILLION JOINT VENTURE TO BUILD A TUNA PROCESSING PLANT IN INDONESIA WITH INDONESIA'S SALIM GROUP AND JAPAN'S TOSHOKU CO DONG WON OFFICIALS SAID THE OFFICIALS SAID DONG WON SOUTH KOREA'S LARGEST DEEPFISHING COMPANY AND SALIM WILL EACH FINANCE 40 OF THE VENTURE WITH TOSHOKU AND AN INTERNATIONAL FINANCING COMPANY EACH COVERING 10 CONSTRUCTION IS TO START IN THE LATTER HALF OF THE YEAR WITH THE GOAL OF BEGINNING OPERATION LATE NEXT YEAR THE PLANT WILL BE EQUIPPED FOR DAILY PRODUCTION CAPACITY OF 100 TONS OF CANNED TUNA 9304120118 930412 GREEK PRICES ROSE 37 IN MARCH ATHENS GREECE'S CONSUMER PRICE INDEX ROSE 37 IN MARCH FROM FEBRUARY AND WAS UP 164 FROM A YEAR EARLIER THE NATIONAL STATISTICAL SERVICE SAID FRIDAY THE SERVICE ATTRIBUTED THE RISE IN MARCH TO HIGHER PRICES FOR CLOTHING SHOES DURABLE GOODS GASOLINE AND TELEPHONE CALLS MORE EXPENSIVE AIRLINE AND TRAIN TICKETS ALSO CONTRIBUTED TO THE INCREASE THE YEARONYEAR FIGURE COMPARES WITH AN INCREASE OF 145 IN FEBRUARY THE SERVICE SAID THE INFLATION INCREASE WAS A SETBACK FOR THE CONSERVATIVE GOVERNMENT'S DEFLATIONARY EFFORTS THOUGH PREMIER CONSTANTINE MITSOTAKIS SAID IT WASN'T UNEXPECTED FOR TWO YEARS THE CONSERVATIVES HAVE BEEN IMPLEMENTING A STRICT AUSTERITY PROGRAM WITH TIGHT MONETARY POLICIES AND A WIDERANGING PRIVATIZATION OF STATERUN COMPANIES IT HAS BEEN PART OF AN EFFORT TO BRING THE GREEK ECONOMY IN LINE WITH THE REST OF THE EUROPEAN COMMUNITY 9304120117 930412 ITT TOP EXECUTIVES' COMPENSATION DROPPED IN 1992 DESPITE SALARY BOOSTS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DESPITE A STEEP LOSS IN 1992 ITT CORP'S TOP EXECUTIVES RECEIVED MODEST RAISES ALTHOUGH TOTAL COMPENSATION FOR THE EXECUTIVES DECLINED IN ITS 1993 PROXY STATEMENT ITT SAID ITS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER RAND V ARASKOG HAD TOTAL COMPENSATION FOR 1992 OF 17 MILLION INCLUDING SALARY OF 1462500 OTHER COMPENSATION OF 210459 FOR TAX REIMBURSEMENT ALLOWANCES AND PERSONAL EXPENSES AND SAVINGS PLAN CONTRIBUTIONS OF 51188 MR ARASKOG'S 1992 COMPENSATION DECLINED FROM THE YEAR EARLIER'S 43 MILLION WHICH INCLUDED A SALARY OF 14 MILLION AND THE FIGURE WAS DOWN SHARPLY FROM THE WIDELY PUBLICIZED 1990 PACKAGE THAT TOTALED MORE THAN 114 MILLION INCLUDING A 12 MILLION SALARY THE 1990 FIGURE DREW CRITICISM FROM SHAREHOLDER GROUPS AND LED TO A RESTRUCTURING OF THE COMPANY'S EXECUTIVE COMPENSATION PLANS TO RELATE PAY MORE CLOSELY TO CORPORATE PERFORMANCE THE DIVERSIFIED CONCERN PREVIOUSLY HAS SAID TOP EXECUTIVES DIDN'T RECEIVE ANNUAL BONUSES FOR 1992 BECAUSE OF THE COMPANY'S DISMAL RESULTS A NET LOSS OF 885 MILLION OR 793 A SHARE ON REVENUE OF 2165 BILLION THE COMPANY TOOK MORE THAN 625 MILLION IN ACCOUNTING CHARGES AND 138 BILLION IN AFTERTAX RESTRUCTURING CHARGES AT ITS BUSINESS UNITS IN ITS PROXY STATEMENT ITT SAID EXECUTIVE SALARIES ARE EVALUATED IN RELATION TO MERIT GUIDELINES THAT CALL FOR A 5 INCREASE FOR EXPECTED LEVELS OF PERFORMANCE THE ACTUAL INCREASE CAN VARY BASED ON PERFORMANCE THE COMPANY ADDED THAT SENIOR EXECUTIVE SALARIES ARE EVALUATED EVERY 18 MONTHS ON JULY 1 1992 MR ARASKOG RECEIVED A 125000 RAISE TO 1525000 EQUIVALENT TO A 6 INCREASE ON ANNUALIZED BASIS THE COMPANY SAID ITT ALSO REPORTED ANNUAL COMPENSATION OF OTHER TOP EXECUTIVES VICE CHAIRMAN M CABELL WOODWARD JR RECEIVED 795690 INCLUDING SALARY OF 750000 DOWN FROM 16 MILLION INCLUDING 725000 IN SALARY IN 1991 HOWARD J AIBEL EXECUTIVE VICE PRESIDENT AND CHIEF LEGAL COUNSEL RECEIVED 738946 INCLUDING 692500 IN SALARY DOWN FROM 13 MILLION INCLUDING 675000 IN SALARY IN 1991 DALE R COMEY EXECUTIVE VICE PRESIDENT RECEIVED 572070 INCLUDING 541667 IN SALARY DOWN FROM 11 MILLION INCLUDING 514167 IN SALARY IN 1991 AND D TRAVIS ENGEN EXECUTIVE VICE PRESIDENT RECEIVED 531458 INCLUDING 504167 IN SALARY DOWN FROM 914594 INCLUDING 380000 IN SALARY IN 1991 MR ENGEN'S 33 SALARY INCREASE REFLECTED ADDITIONAL RESPONSIBILITIES THE PROXY FILING SAID OF THE PRINCIPAL OFFICERS ONLY MR WOODWARD EXERCISED STOCK OPTIONS IN 1992 REPORTING A 560250 GAIN SEPARATELY IN ITS ANNUAL REPORT THE COMPANY SAID MOST OF ITS BUSINESSES WILL HAVE STRONGER PERFORMANCE IN 1993 WE'VE SET SOLID AND ACHIEVABLE GOALS FOR 1993 AND ARE COMMITTED TO ATTAINING THEM SAID ROBERT A BOWMAN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE COMPANY EXPECTS STRONG REBOUNDS AT ITS INSURANCE FINANCE AND HOTEL UNITS IN 1992 THE INSURANCE UNIT WAS HURT BY LARGE CATASTROPHIC LOSSES THE FINANCE UNIT TOOK A 612 MILLION OR 523 A SHARE RESTRUCTURING CHARGE THE HOTEL UNIT EXPECTS TO BENEFIT FROM AN ONGOING RENOVATION PLAN ITT EXPECTS ITS POPULAR ANTILOCK BRAKE SYSTEM TO CONTINUE ITS AUTOMOTIVE UNIT'S STRONG GROWTH 9304120116 930412 GM'S HUGHES UNIT IS SAID TO RECEIVE CHINA PHONE JOB BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES HUGHES AIRCRAFT CO HAS AGREED TO FIT UP TO 100000 SUBSCRIBERS IN THE CITY OF CHENGDU CHINA WITH A RESIDENTIALCELLULAR TELEPHONE SYSTEM ACCORDING TO PEOPLE FAMILIAR WITH THE PACT THE UNIT OF GENERAL MOTORS CORP IS EXPECTED TO ANNOUNCE TODAY THAT UNDER A 15 MILLION INITIAL CONTRACT IT WILL PROVIDE THE SERVICE TO 20000 HOMES AND OFFICES IN THE CITY BY NEXT NOVEMBER FOLLOWON CONTRACTS ARE EXPECTED TO CALL FOR THE FURTHER INSTALLATIONS THE FIRST CONTRACT HAS BEEN AWARDED BY CHENGDU TONGFA TELECOMMUNICATIONS A CELLULAR OPERATING COMPANY MADE UP OF PRIVATE AND GOVERNMENT ENTITIES THE AGREEMENT BY HUGHES NETWORK SYSTEMS MARKS A MAJOR ENTRY INTO THE PROMISING CHINA MARKET FOR A SYSTEM FIRST UNVEILED LAST SUMMER AT THAT TIME HUGHES SIGNED A 48 MILLION CONTRACT IN TATARSTAN AN AUTONOMOUS REPUBLIC WITHIN RUSSIA ON THE EASTERN EDGE OF SIBERIA THAT NETWORK SCHEDULED TO OPERATE THIS FALL WILL SERVE 50000 SUBSCRIBERS IN EIGHT CITIES ULTIMATELY HUGHES HOPES FOR FARREACHING CONTRACTS IN UNDERDEVELOPED COUNTRIES FROM ASIA TO LATIN AMERICA WHICH HAVE LITTLE OR INADEQUATE PHONE SERVICE HUGHES HISTORICALLY A BIG DEFENSE CONTRACTOR IS LOOKING TO SUCH TECHNOLOGIES TO SPEED ITS TRANSITION AWAY FROM A RELIANCE ON DEFENSE AND GOVERNMENT CONTRACTS THE HUGHES RESIDENTIALCELLULAR SYSTEMS DEVELOPED DURING THE LAST FOUR YEARS CAN BE INSTALLED QUICKLY COMPARED WITH TRADITIONAL GROUNDWIRE SYSTEMS NEW EFFICIENCIES IN COMPRESSING DIGITALCELLULAR TRANSMISSION FILL THE NATURAL GAPS IN CONVERSATIONS WITH BURSTS FROM OTHER CONVERSATIONS ALLOWING HIGHER VOLUMES OF CALLS TO BE CARRIED IN A GIVEN PERIOD OF TIME AND ROOFTOP MULTISUBSCRIBER UNITS ALLOW SIGNALS FROM NUMEROUS TELEPHONES COMPUTERS AND FACSIMILE MACHINES IN A BUILDING TO BE COLLECTED AND TRANSMITTED THROUGH A SINGLE PROCESSOR IN CHENGDU THE CAPITAL OF SICHUAN PROVINCE ABOUT 10000 HOMES WILL BE SERVED UNDER THE FIRST PHASE OF THE CONTRACT MANY OF THE REMAINING TELEPHONES WILL BE PORTABLE UNITS THAT DOUBLE AS EITHER MOBILE HANDSETS OR A PHONE FOR HOME AND OFFICE USE THE CITY OF ABOUT SIX MILLION IS PRESENTLY SERVED BY A SMALL MOBILECELLULAR SYSTEM AND AN AGING HARDWIRE TELEPHONE SYSTEM THAT OFFERS ERRATIC SERVICE OR NO SERVICE AT ALL IN SOME OUTLYING AREAS 9304120115 930412 INTERNATIONAL CHINA TO LAUNCH SATELLITES IN '94 BEIJING CHINA WILL BE READY EARLY NEXT YEAR TO LAUNCH A NEW GENERATION OF TELECOMMUNICATIONS SATELLITES THE OFFICIAL CHINA DAILY NEWSPAPER REPORTED SATURDAY THE NEWSPAPER QUOTED FAN BENYAO OF THE CHINESE ACADEMY OF SPACE TECHNOLOGY AS SAYING THE FIRST EAST IS REDIII SATELLITE IS IN ITS FINAL STAGES OF ASSEMBLY AND TESTING IT WEIGHS 22 TONS AND WILL HAVE A SERVICE LIFE OF EIGHT YEARS THE NEWSPAPER SAID CHINA PLANS TO USE IT TO REPLACE THREE EXPERIMENTAL TELECOMMUNICATIONS SATELLITES ALREADY IN ORBIT AND NEARING THE END OF THEIR LIVES CHINA HAS PUT 33 SATELLITES INTO ORBIT SINCE 1970 THE PAPER SAID 9304120114 930412 OTC FOCUS HEALTH CARE ISSUES LURE VALUE INVESTORS' DESPITE UNCERTAINTY OVER CLINTON'S PLAN BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HEALTH CARE STOCKS ARE STARTING TO ATTRACT SOME MODEST BUYING FROM THE BARGAIN SEEKERS WHO CALL THEMSELVES VALUE INVESTORS FOR THE FIRST TIME IN A LONG TIME WE HAVE STARTED TO BECOME INTERESTED SAYS BILL NASGOVITZ MANAGER OF THE HEARTLAND VALUE FUND IN MILWAUKEE WE HAVE BEEN BUYING HEALTH CARE STOCKS A NUMBER OF BATTERED HMOS NURSING HOMES REHABILITATION COMPANIES REITS AND MAYBE EVEN A BUSTED BIOTECH VALUE FUNDS BUY STOCKS THAT ARE CHEAP BASED UPON A FINANCIAL YARDSTICK SUCH AS A STOCK'S MULTIPLE OF EARNINGS AND MULTIPLES ARE DEPRESSED WITH THE DOW JONES HEALTH CARE INDEX DOWN 13 AND THE DOW JONES MEDICAL & BIOTECHNOLOGY INDEX OFF 40 MANY MEDICALRELATED STOCKS TRADE ON THE NASDAQ OVERTHECOUNTER MARKET WHICH FELL 255 TO 66633 THURSDAY AND IS DOWN 16 YEAR TO DATE MR NASGOVITZ SAYS THAT AT YEAR END ONLY 7 OF HIS FUND WAS IN HEALTH CARE ISSUES NOW THIS SECTOR ACCOUNTS FOR 12 OF THE FUND WHICH HAS DOUBLED IN SIZE TO 116 MILLION LIKE MOST VALUE INVESTORS HE ISN'T EXPECTING A QUICK KILLING ON THESE STOCKS WHICH STILL FACE GREAT UNCERTAINTY AMID PRESIDENT CLINTON'S PENDING HEALTH CARE OVERHAUL YOU HAVE A MAJOR SHIFT IN INVESTOR PSYCHOLOGY AND IT WILL TAKE TIME FOR IT TO PLAY OUT HE SAYS WITH NO APPARENT ANSWERS FROM WASHINGTON RIGHT NOW YOU HAVE TO BE VERY SELECTIVE AND VERY PATIENT WHILE HE WAITS MR NASGOVITZ LOOKS FOR COMPANIES WITH LARGE CASH POSITIONS HE BOUGHT THE BIOTECHNOLOGY STOCK ZYNAXIS NEAR ITS 52WEEK LOW AT 3 3/4 WHEN THE STOCK PRICE WAS BELOW THE CASHPERSHARE AMOUNT THE MALVERN PA COMPANY HAD A 1992 LOSS OF 71 CENTS A SHARE AGAINST A YEAREARLIER LOSS OF 169 THURSDAY THE STOCK EASED 1/8 TO 5 STILL LESS THAN HALF ITS YEARLY HIGH OF 10 3/4 ZYNAXIS IS DEVELOPING NEW THERAPEUTIC DRUGDELIVERY SYSTEMS AND CELLBASED DIAGNOSTIC PRODUCTS HENRY OTTO A SMALLSTOCK MANAGER WITH BRANDYWINE ASSET MANAGEMENT IN WILMINGTON DEL SAYS HE IS SLOWLY BUYING MORE HEALTH CARE STOCKS INCREASING HOLDINGS TO ABOUT 7 OF HIS PORTFOLIO UP FROM 2 A YEAR AGO THIS IS AN AREA WE HAVEN'T DONE MUCH BUYING IN HE SAYS AND WE ARE SPENDING A LOT OF TIME GETTING TO KNOW THE NAMES AND PEOPLE IT'S NOT JUST A WASHINGTON PROBLEM MR OTTO ASSERTS EACH STOCK HAS ITS OWN INSTABILITY AND THE FUNDAMENTALS HAVE TO BE CAREFULLY CHECKED OUT MANY HEALTH CARE COMPANIES FACE COMPETITIVE THREATS SOME ARE IN VARIOUS STAGES OF SEEKING FOOD AND DRUG ADMINISTRATION APPROVAL ON TUESDAY MR OTTO BOUGHT SCIMED LIFE SYSTEMS AT 38 THE STOCK FELL TO 33 3/4 AT THURSDAY'S CLOSE HAMBRECHT & QUIST ANALYST KURT KRUGER TRIMMED HIS FISCAL 1994 PROFIT ESTIMATE TO 415 A SHARE FROM 440 CITING DELAY IN FDA APPROVAL OF A NEW CATHETER AND A RELATIVELY SLOW DOMESTIC GROWTH RATE IN THE FISCAL FOURTH QUARTER ENDED IN FEBRUARY CLEARANCE OF THE NEW CATHETER MEANT TO TREAT CORONARYARTERY DISEASE IS CONSIDERED CRUCIAL AS SCIMED IS PAYING SUBSTANTIAL ROYALTIES TO ELI LILLY ON ITS EXPRESS CATHETER UNDER TERMS OF A PATENT SETTLEMENT THERE IS NO QUESTION THAT THERE ARE A LOT OF RISKS MR OTTO SAYS IT'S IMPORTANT TO HAVE A DIVERSIFIED PORTFOLIO LOW STOCK PRICES DON'T NECESSARILY MEAN GOOD VALUE ANALYSTS SAY ON PAPER WE'VE GOTTEN TO THE POINT WHERE VALUE INVESTORS ARE BUYING WHAT GROWTH INVESTORS ARE SELLING SAYS PETER CANELO NATWEST SECURITIES' CHIEF INVESTMENT STRATEGIST THE KEY WORDS ARE ON PAPER' GROWTHRATE ASSUMPTIONS ARE FALLING FASTER THAN P/ES THE STOCK PRICE AS A MULTIPLE OF EARNINGS AND THERE IS NO WAY OF GUESSING WHAT THE EARNINGS WILL BE IT ISN'T EASY TO PASS UP THE APPARENT BARGAINS SAYS BILL DUTTON MANAGER OF MESIROW ASSET MANAGEMENT'S SKYLINE SPECIAL EQUITIES FUND IN CHICAGO BUT HE OFTEN DOES THERE ARE REAL CONTRARIANS ANXIOUS TO GET IN THERE I'M NOT A REAL CONTRARIAN HE SAYS EVEN THOUGH THE STOCKS ARE LOOKING CHEAP I ALSO LIKE COMPANIES WITH THE OUTLOOK PRETTY BRIGHT AND THE CASE FOR MOST OF THESE STOCKS IS STILL PRETTY NEGATIVE DESPITE HIS CONCERNS MR DUTTON DID BUY SOME SHARES IN PHYSICIAN CORP OF AMERICA'S INITIAL PUBLIC OFFERING THE COMPANY A MANAGED HEALTH CARE FIRM PROVIDING SERVICES THROUGH HEALTH MAINTENANCE ORGANIZATIONS IN FLORIDA AND TEXAS OFFERED THREE MILLION SHARES AT 15 1/4 ON MARCH 29 THE STOCK EASED TO 15 THURSDAY MR DUTTON SAYS THE STOCK IS TRADING AT 15 TIMES 1992 EARNINGS OF 97 CENTS A SHARE WHICH MIGHT LOOK EXPENSIVE AT FIRST BUT HE SAYS THE COMPANY'S EARNINGS SHOULD GROW THIS YEAR TO 170 A SHARE AFFORDING A REASONABLE NINE MULTIPLE IT'S A POWERFUL STORY THIS COMPANY IS THE LARGEST HMO SERVING MEDICAID PATIENTS IN FLORIDA AND IT LOOKS LIKE THE GOVERNMENT IS PUSHING FOR MORE MEDICAID PATIENTS TO GO TO HMOS MR DUTTON SAYS THIS COMPANY SHOULD GROW DESPITE THE LOW GROWTH RATES THE REST OF THE INDUSTRY WILL HAVE CLAUDIA MOTT A MARKET STRATEGIST WITH PRUDENTIAL SECURITIES SAYS THAT EVEN THOUGH THE HEALTH CARE SECTOR IS RANKED NO 1 FOR ATTRACTIVE IN OUR SMALLCAP UNIVERSE THERE ISN'T ANY NEED TO RUSH THESE STOCKS ARE GOING TO BE UNDER A CLOUD FOR A WHILE SHE SAYS THERE WILL BE PLENTY OF TIME TO PICK THROUGH AND SOME COULD EVEN DROP FURTHER 9304120113 930412 FORECASTS BY ECONOMISTS BRIGHTER SURVEY FINDS WASHINGTON PRIVATE ECONOMIC FORECASTERS ARE INCREASINGLY OPTIMISTIC ABOUT THE PACE OF ECONOMIC GROWTH THE LATEST SURVEY BY BLUE CHIP ECONOMIC INDICATORS SHOWS THE NEWSLETTER'S SURVEY OF 52 ECONOMISTS FINDS AN AVERAGE FORECAST OF 33 GROWTH FOR THIS YEAR SLIGHTLY HIGHER THAN THE 32 AVERAGE REPORTED A MONTH EARLIER AT THE END OF LAST YEAR THE FORECASTERS EXPECTED THE ECONOMY TO GROW ONLY 28 IN 1993 SEVERAL OF THE 22 PANEL MEMBERS WHO RAISED THEIR FORECASTS SAID CONTINUED IMPROVEMENT IN CORPORATE PROFITABILITY INCREASES THE ODDS THAT CAPITAL SPENDING WILL BE A MAJOR CONTRIBUTOR TO OVERALL ECONOMIC GROWTH THIS YEAR THE NEWSLETTER SAID FOR NEXT YEAR THE ECONOMISTS FORESEE GROWTH OF 31 THE SAME AS REPORTED THE MONTH BEFORE THE ECONOMY GREW 21 IN 1992 THE BLUE CHIP ECONOMISTS EXPECT CONSUMER PRICES TO CLIMB 32 THIS YEAR AND 33 NEXT COMPARED WITH 3 IN 1992 THEY EXPECT THE YIELD ON THREEMONTH TREASURY BILLS TO AVERAGE 33 THIS YEAR AND 4 IN 1994 9304120112 930412 TECHNOLOGY HEALTHSERVICE REVENUE INCREASED 10 IN 1991 WASHINGTON REVENUE FOR THE NATION'S HEALTHSERVICE INDUSTRIES CONTINUED TO CLIMB IN 1991 TOPPING 571 BILLION A 10 INCREASE FROM 1990 THE CENSUS BUREAU SAID THE AGENCY IN A NEW SURVEY SAID REVENUE INCREASED IN EVERY HEALTHSERVICE SEGMENT IT EXAMINED WITH HOME HEALTH CARE AND KIDNEY DIALYSIS CENTERS SHOWING THE LARGEST GAINS 192 AND 18 RESPECTIVELY DENTAL LABORATORIES SHOWED THE SMALLEST PICKUP WITH A 09 INCREASE HOSPITALS ACCOUNTED FOR MORE THAN HALF OF ALL REVENUE FOR THE HEALTHSERVICES INDUSTRIES IN 1991 EXCEEDING 305 BILLION THAT WAS A JUMP OF NEARLY 11 FROM THE PREVIOUS YEAR NURSING AND PERSONALCARE FACILITIES HAD NEARLY 40 BILLION IN REVENUE A 10 RISE FROM 1990 IN ADDITION THE CENSUS BUREAU SAID REVENUE FOR DOCTORS' OFFICES AND CLINICS ROSE 72 IN 1991 TO 138 BILLION PRIVATE INSURANCE PROGRAMS GENERATED 40 OF THE TOTAL REVENUE REPORTED BY DOCTORS' OFFICES AND CLINICS MEDICARE AND MEDICAID MEANWHILE ACCOUNTED FOR NEARLY 30 MORE THAN 60 OF TOTAL REVENUE FOR NURSING AND PERSONALCARE FACILITIES IN 1991 WAS FROM MEDICARE AND MEDICAID PAYMENTS SOME 27 WAS FROM DIRECT PATIENT PAYMENTS 9304120111 930412 AUTOS DESPITE SLUMP IN SALES HONDA RAISES ITS PRICES BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CONSUMERS WITH A YEN FOR JAPANESE CARS ARE IN FOR ANOTHER DOSE OF STICKER SHOCK HONDA MOTOR CO TOLD US DEALERS LAST WEEK THAT IT PLANS TO RAISE BASE PRICES OF ITS HONDA AND ACURA BRAND CARS FOR THE SECOND TIME IN THREE MONTHS LARGELY TO COUNTER PROFIT PRESSURES AGGRAVATED BY THE YEN'S RECORD STRENGTH AGAINST THE DOLLAR HONDA'S DECISION TO TACK AN ADDITIONAL 100 TO 450 A CAR ONTO STICKER PRICES WILL BE CHEERED IN DETROIT ANALYSTS SAY JAPANESE CARS COST AN AVERAGE OF 2300 MORE THAN RIVAL BIG THREE MODELS EVEN AFTER RECENT MIDYEAR PRICE INCREASES FOR SOME DETROIT VEHICLES THAT HUGE GAP IS TURNING EVEN THOSE CONSUMERS WHO ARE STILL WARY OF DETROIT'S QUALITY INTO BUY AMERICAN CONVERTS HONDA'S ANNIVESARY EDITION ACCORD WITH AUTOMATIC TRANSMISSION ANTILOCK BRAKES A DRIVER'S SIDE AIRBAG AND OTHER AMENITIES WILL NOW COST 19030 INCLUDING DESTINATION CHARGES A SIMILARLY EQUIPPED DODGE INTREPID COSTS 18729 WHILE A SIMILARLY EQUIPPED OLDSMOBILE CUTLASS SUPREME COSTS 16445 THOSE DIFFERENCES HELP TO EXPLAIN WHY JAPANESE MANUFACTURERS SAW THEIR COMBINED SHARE OF THE PASSENGERCAR MARKET DROP TO 27 FOR THE FIRST THREE MONTHS OF 1993 FROM 30 A YEAR EARLIER JAPANESE MANUFACTURERS ARE SCRAMBLING TO ADAPT BY MOVING MORE PRODUCTION TO THE US AND SIGNING UP MORE US SUPPLIERS TO AVOID THE HIGH COSTS OF JAPANESEMADE COMPONENTS IN SOME CASES THEY'RE ALREADY HOLDING DOWN PRICES OF USMADE MODELS NISSAN MOTOR CORP'S MIDSIZE ALTIMA FOR EXAMPLE SELLS FOR ABOUT 16000 WITH AIRBAG AUTOMATIC TRANSMISSION AIR CONDITIONING AND POWER DOORS AND WINDOWS NISSAN IN JANUARY BOOSTED PRODUCTION OF THE ALTIMA AT ITS TENNESSEE FACTORY TO MEET ROBUST DEMAND MEANWHILE BIG THREE EXECUTIVES SEE THEIR BEST OPPORTUNITY IN MORE THAN SIX YEARS TO TURN BACK JAPANESE ADVANCES IN THE US MARKET HONDA'S ACTION IS JUST THE LATEST IN A STRING OF PRICE INCREASES BY JAPANESE MANUFACTURERS TOYOTA MOTOR CORP AND NISSAN BOOSTED PRICES BY AS MUCH AS 32 OR 580 IN FEBRUARY MAZDA MOTOR CORP FOLLOWED SUIT BY RAISING THE BASE PRICE ON SEVERAL CARS AND LIGHT TRUCKS BY AS MUCH AS 44 OR 346 HONDA ITSELF LIFTED PRICES ON NEW HONDA AND ACURA MODELS BY AS MUCH AS 11 OR 150 IN FEBRUARY HONDA WHICH BUILT ITS REPUTATION WITH CARS THAT OFFERED MORE FOR THE MONEY THAN DETROIT COMPETITORS IS GETTING HIT HARD HONDA'S US SALES ARE OFF 182 SO FAR THIS YEAR COMPARED WITH A YEAR EARLIER SALES OF THE FLAGSHIP ACCORD MODEL ONCE THE BESTSELLING CAR IN THE US WERE DOWN 396 THROUGH MARCH 30 HONDA OFFICIALS SAY THEIR SALES HAVE PERKED UP A BIT IN THE LAST COUPLE OF WEEKS BECAUSE THEY HAVE REINSTATED DISCOUNTS TO DEALERS ON THE ACCORD DEALERS CAN USE THE DISCOUNTS OF 500 A CAR TO LOWER THE PRICE TO CONSUMERS OR INCREASE ADVERTISING AND PROMOTIONAL SPENDING BUT HONDA IS IN THE PROCESS OF ELIMINATING A PRODUCTION SHIFT AT ONE OF ITS JAPANESE FACTORIES BECAUSE OF SLUGGISH CAR SALES WORKERS WILL BE REASSIGNED TO PRODUCTION OF MOTORCYCLES WHICH ARE SELLING WELL IN SOUTHEAST ASIA AND CHINA COMPANY OFFICIALS ACKNOWLEDGE THAT THEIR CAR BUSINESS WON'T RECOVER OVERNIGHT BECAUSE JAPANESE CONSUMERS ARE WORRIED ABOUT THE RECESSION IN THAT COUNTRY AND AMERICANS ARE BALKING AT HONDA'S PRICES EFFECTIVE TODAY STICKER PRICES ON NEW ACCORD CIVIC AND PRELUDE MODELS WILL BE INCREASED TO AS MUCH AS 65 OR 450 ABOVE LEVELS AT THE START OF THE CURRENT MODEL YEAR WHICH BEGAN IN OCTOBER PRICES WILL BE UP BY AS MUCH AS 84 OR 1105 FROM THE INTRODUCTORY PRICES FOR THE 1992 MODEL YEAR HONDA RAISED THE BASE PRICE OF THE ACCORD SEDAN BY 16 OR 230 TO 14330 THE CURRENT PRICE REFLECTS AN INCREASE OF 84 FROM THE 1992 INTRODUCTORY PRICE OF 13225 THE MOST EXPENSIVE ACCORD SEDAN THE SE NOW COSTS 22100 UP 11 OR 230 HONDA IS EXPECTED TO ROLL OUT A REDESIGNED ACCORD THIS FALL THE CHEAPEST ACCORD COUPE MEANWHILE CARRIES A BASE STICKER PRICE OF 14130 UP 17 OR 230 FROM THE PREVIOUS PRICE THE PRICE OF THE ACCORD WAGON IS VIRTUALLY UNCHANGED HONDA ALSO BOOSTED THE BASE PRICE OF ITS CIVIC AND PRELUDE MODELS THE LEAST EXPENSIVE CIVIC THE CX HATCHBACK NOW COSTS 8950 UP 53 FROM ITS FEBRUARY PRICE AND UP 65 FROM THE START OF THE CURRENT MODEL YEAR THE COSTLIEST CIVIC THE EX HAS A BASE STICKER PRICE OF 14350 UP 11 FROM THE PREVIOUS PRICE OF 14200 THE BASE PRICE OF THE REDESIGNED PRELUDE IS 17400 UP 12 OR 200 THE TOPOFTHELINE PRELUDE SI COSTS 23470 A 200 INCREASE FROM FEBRUARY SOME DEALERS BEMOANED THE ACTION ONE COMPLAINED I'M ALREADY HAVING A HARD TIME SELLING THE CARS 9304120110 930412 REGULATORS ASK GM TO RECALL PICKUP TRUCKS AUTO MAKER SAYS REQUEST IS UNWARRANTED SETTING STAGE FOR LEGAL BATTLE BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE REQUEST BY FEDERAL SAFETY REGULATORS THAT GENERAL MOTORS CORP LAUNCH ONE OF THE LARGEST VEHICLE RECALLS EVER SETS THE STAGE FOR A LEGAL BATTLE THAT COULD DRAG ON FOR YEARS AND TARNISH GM'S IMAGE ALTHOUGH THE AUTO MAKER HAS UNTIL THE END OF THE MONTH TO ISSUE ITS OFFICIAL RESPONSE IT IMMEDIATELY REJECTED AS UNWARRANTED THE GOVERNMENT'S PRELIMINARY REQUEST FOR A RECALL OF 47 MILLION PICKUP TRUCKS WITH SIDESADDLE GAS TANKS SUCH A RECALL COULD COST BETWEEN 200 MILLION AND 1 BILLION BUT FRIDAY'S REQUEST BY THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION CLEARLY CAUGHT GM OFFICIALS BY SURPRISE WE WERE A LITTLE STUNNED A GM SPOKESMAN SAID OVER THE WEEKEND THE RECALL REQUEST WAS ANNOUNCED SHORTLY BEFORE THE CLOSE OF TRADING ON THE NEW YORK STOCK EXCHANGE WHERE GM FINISHED THE DAY AT 3950 UP 25 CENTS FOR MONTHS GM HAD BEEN HOPING PRECISELY THE OPPOSITE FINDING BY GOVERNMENT REGULATORS WOULD DEFUSE THE CONTROVERSY OVER ITS 19731987 FULLSIZE PICKUPS NOW IT APPEARS THAT THE RECALL REQUEST BY FEDERAL REGULATORS WITH APPROVAL FROM TRANSPORTATION SECRETARY FEDERICO F PENA IS A SEVERE SETBACK TO GM IN SEVERAL WAYS AMONG THEM THE AGENCY'S ACTION COULD GIVE NEW IMPETUS TO DOZENS OF CIVIL SUITS ALREADY FILED AGAINST THE COMPANY GM IS SEEKING A NEW TRIAL IN AN ATLANTA CASE WHERE A STATE COURT JURY IN FEBRUARY RETURNED A 1052 MILLION AWARD TO THE FAMILY OF A YOUNG MAN SHANNON MOSELEY WHO WAS KILLED IN A FIERY SIDEIMPACT COLLISON THE RECALL REQUEST BLUNTS THE PUBLICRELATIONS COUP GM SCORED IN FEBRUARY WHEN IT PROVED NBC NEWS HAD AIRED A RIGGED PICKUP CRASH TEST WITH TOY ROCKETS THE COMPANY FORCED THE NETWORK TO ISSUE AN ONTHEAIR APOLOGY AND THE CONTROVERSY ULTIMATELY LED TO THE RESIGNATION OF MICHAEL GARTNER PRESIDENT OF NBC NEWS THE COMPANY'S HANGTOUGH STANCE COULD UNDERMINE ITS CONTENTION THAT A NEW GM EXISTS IN THE WAKE OF LAST YEAR'S BOARDROOM REVOLT THAT INSTALLED A NEW GENERATION OF SENIOR EXECUTIVES WE'RE TALKING ABOUT A NEW MINDSET FOR GM A NEW SET OF VALUES JOHN F SMITH JR THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE SAID IN A SPEECH IN NEW YORK LAST WEEK BUT SO FAR GM IS TAKING THE SAME HANGTOUGH TACK IT TOOK IN THE CELEBRATED XCAR CASE IN THE EARLY 1980S IN COURT GM FOUGHT NHTSA'S DEMAND FOR A RECALL OF THOSE MODELS FOR ALLEGEDY FAULTY BRAKES AFTER SEVEN YEARS THE COMPANY PREVAILED MAKING THE CASE THE ONLY RECALL BATTLE THAT NHTSA HAS EVER LOST NHTSA SEEMS TO HAVE LEARNED ITS LESSON IN THE XCAR CASE THE AGENCY NEGLECTED TO GIVE GM AND THE PUBLIC TIME TO COMMENT ON AN INITIAL FINDING OF A DEFECT AND TOOK THE CASE STRAIGHT TO COURT THIS TIME BY ISSUING A PRELIMINARY RECOMMENDATION FOR A RECALL THE AGENCY IS MOVING MORE DELIBERATELY BUT ULTIMATELY THE PICKUPTRUCK CASE COULD END UP IN COURT AS WELL IF THE AUTO MAKER DOESN'T RECALL THE VEHICLES OR GIVE NHTSA NEW CONVINCING INFORMATION ATTESTING TO THEIR SAFETY NHTSA WILL LIKELY INVESTIGATE THE MATTER FURTHER HOLD PUBLIC HEARINGS AND SEEK A COURT ORDER FORCING GM TO RECALL THE TRUCKS GM THEN COULD ARGUE IN COURT THAT A RECALL ISN'T WARRANTED AS IT DID WITH THE XCARS THE SUCCESSFUL XCAR DEFENSE LAUNCHED THE CAREER OF GM LAWYER HARRY J PEARCE WHO NOW IS EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL AND WHO IS LEADING THE DEFENSE OF THE PICKUP TRUCKS BUT GM ALSO HAS ANOTHER SENIOR OFFICIAL EXPERIENCED IN EMOTIONALLY CHARGED PRODUCTSAFETY CONTROVERSIES ITS NONEXECUTIVE CHAIRMAN JOHN G SMALE MR SMALE AS CHIEF EXECUTIVE OF PROCTER & GAMBLE CO MADE THE HIGHLY PUBLICIZED 1981 DECISION TO RECALL RELY TAMPONS FROM SUPERMARKET SHELVES THE SUPERABSORBENT TAMPONS WERE LINKED TO TOXICSHOCK SYNDROME A SOMETIMESFATAL DISEASE AT THE TIME P&G MAINTAINED THAT RELY WAS SAFE BUT MR SMALE OPTED FOR A RECALL AS THE BEST WAY TO DEFEND THE COMPANY'S REPUTATION NHTSA BASED ITS RECALL REQUEST ON STATISTICAL ANALYSES OF PICKUPTRUCK ACCIDENTS GM PICKUP TRUCKS HAVE A RISK OF FIRE OCCURRENCE IN FATAL SIDEIMPACT CRASHES THAT IS 24 TIMES GREATER THAN THAT OF FULLSIZE FORD PICKUP TRUCKS WILLIAM A BOEHLY NHTSA'S HEAD OF ENFORCEMENT WROTE HIS LETTER TO GM WAS SENT TO THE COMPANY AND DISTRIBUTED TO NEWS MEDIA FRIDAY AFTERNOON AFTER THE DETROIT NEWS DISCLOSED THAT A RECALL REQUEST WAS BEING CONSIDERED THE DEFECT CAUSES FIVE TO SIX DEATHS A YEAR MR BOEHLY WROTE NHTSA ARRIVED AT ITS CONCLUSION WITHOUT QUESTIONING GM'S PRIMARY ARGUMENTS GM REITERATED THOSE ARGUMENTS FRIDAY FIRST GM'S FULLSIZE PICKUPS MEET OR EXCEED NHTSA'S SAFETY STANDARD THAT SPECIFICALLY ADDRESSES FUEL SYSTEM PERFORMANCE IN SIDEIMPACT COLLISIONS THE COMPANY SAID IN A STATEMENT GM ADDED THAT THEREFORE ANY FINDING OF A DEFECT WOULD AMEND THE SAFETY STANDARD DISCRIMINATORILY AND RETROACTIVELY SECOND THE SAFETY RECORD OF GM'S FULLSIZE PICKUP TRUCKS IS EQUAL TO OR BETTER THAN THE PERFORMANCE OF OTHER FULLSIZE PICKUP TRUCKS MADE BY COMPETITORS GM SAID AND MUCH BETTER THAN THE PERFORMANCE OF THE AVERAGE TRUCK OR CAR ON THE ROAD TODAY TELEPHONE INTERVIEW IN A TELEPHONE INTERVIEW FRIDAY NHTSA'S MR BOEHLY SAID OVERALL THERE IS NO QUESTION THAT THE TRUCKS ARE SAFE BUT IN SIDE CRASHES THERE IS AN INCREASED RISK WHAT'S MORE MR BOEHLY SAID GM'S CONTENTION THAT ITS TRUCKS MEET FEDERAL SAFETY STANDARDS GOVERNING GAS TANKS IN SIDE CRASHES IS IRRELEVANT WE HAVE NO REASON TO SUGGEST THAT THEY DON'T MEET THE FEDERAL SAFETY STANDARD MR BOEHLY SAID OUR VIEW IS YOU CAN STILL HAVE A DEFECT THE FINDING OF A DEFECT COMES AFTER NHTSA REVIEWED THOUSANDS OF DOCUMENTS IN AN INVESTIGATION THAT BEGAN DEC 8 REGULATORS STUDIED AUTOPSY REPORTS TO DETERMINE WHETHER FIRE OR IMPACT WAS THE CAUSE OF DEATH IN SIDEIMPACT CRASHES INVOLVING THE GM TRUCKS REGULATORS ALSO TESTED THE GM PICKUPS EXAMINED FUEL TANKS AND REVIEWED TESTIMONY FROM 120 LAWSUITS CHARGING GM WITH DEFECTIVE FUEL SYSTEM DESIGN CALL FOR STEEL CAGES GM'S CRITICS NOTABLY THE WASHINGTONBASED CENTER FOR AUTO SAFETY SAY THAT THE COMPANY COULD FIX THE TRUCKS BY THE RELATIVELY SIMPLE PROCEDURE OF INSTALLING STEEL CAGES AROUND THE GAS TANKS AFTER 1987 GM MOVED THE GAS TANKS INSIDE THE TRUCKS' STEEL UNDERFRAME WHICH IS WHERE OTHER AUTO MAKERS PUT THE TANKS THE CENTER FOR AUTO SAFETY FOUNDED BY RALPH NADER ASKED NHTSA TO RECALL THE TRUCKS LAST SUMMER PUBLIC HEARINGS ON A RECALL ORDER SAYS CENTER CHIEF CLARENCE DITLOW WOULD BE A PUBLICRELATIONS DISASTER FOR GM HE PREDICTS THE HEARING WOULD GO ON FOR SEVERAL DAYS AND YOU WOULD HAVE VICTIMS TESTIFY YOU WOULD HAVE PEOPLE WITH GROTESQUE BURNS PEOPLE WHOSE PARENTS HAVE DIED MEANWHILE ROBERT D CHEELEY ONE OF THE PLAINTIFF ATTORNEYS IN THE MOSELEY CASE IN ATLANTA SAYS THAT HE AND OTHER LAWYERS WILL USE THE FEDERAL INVESTIGATION TO BOLSTER FUTURE CASES THIS CONFIRMS THAT THE JURY IN THE MOSELEY CASE WAS NOT MISLED BY EMOTION MR CHEELEY SAID 9304120109 930412 CRAIG HALL AGREES TO PAY 1025 MILLION IN RTC SETTLEMENT DALLAS CRAIG HALL ONCE ONE OF THE LARGEST REAL ESTATE SYNDICATORS IN THE COUNTRY HAS AGREED TO PAY 1025 MILLION TO THE RESOLUTION TRUST CORP TO SETTLE CLAIMS OF MORE THAN 300 MILLION MR HALL WHO SOUGHT PERSONAL PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE ONE YEAR AGO AFTER THE RTC SUED SAID THE DEAL SETTLES ALL RTC CLAIMS AGAINST HIMSELF PUBLICLY TRADED HALL FINANCIAL GROUP AND SEVERAL RELATED REAL ESTATE PARTNERSHIPS THE RTC THE FEDERAL AGENCY THAT IS MOPPING UP BEHIND THE SCORES OF NOWFAILED THRIFTS THAT HELPED FINANCE MR HALL'S REALESTATE INVESTMENTS IN THE EARLY 1980S IS HIS LARGEST CREDITOR UNDER TERMS OF THE SETTLEMENT WHICH WAS APPROVED BY A FEDERAL BANKRUPTCY COURT IN DALLAS MR HALL MUST PAY 955 MILLION IN CASH BY AUG 5 TO THE FEDERAL AGENCY AND HIS BANKRUPTCY ESTATE MUST PAY ANOTHER 7 MILLION BY THE SAME DATE MR HALL SAID HE WILL HAVE TO SELL ASSETS AND SEEK FINANCING TO MAKE THE PAYMENT WITH THE SETTLEMENT IN HAND MR HALL SAID HE HAS ALSO REACHED AGREEMENT WITH A CREDITORS' COMMITTEE AND OTHER MAJOR CREDITORS ON A PLAN OF REORGANIZATION IT WILL ALL BE HAPPENING VERY QUICKLY NOW THIS PAVES THE WAY TO END THE BANKRUPTCY HE SAID FOR MR HALL REORGANIZATION WILL MOVE HIM A STEP CLOSER TO LIVING UP TO THE TITLE OF HIS AUTOBIOGRAPHY NEWS OF MY DEATH WAS GREATLY EXAGGERATED WHICH WAS PUBLISHED IN 1991 HE ONCE PRESIDED OVER A REAL ESTATE EMPIRE VALUED AT 3 BILLION AND HAS STRUGGLED FOR SEVEN YEARS TO SURVIVE FIGHTING NUMEROUS LAWSUITS AND HAMMERING OUT DOZENS OF RESTRUCTURINGS THE DEAL WITH THE RTC SETTLES THE AGENCY'S LAWSUIT FILED AGAINST MR HALL LAST YEAR SEEKING 68 MILLION FOR ALLEGED MISMANAGEMENT AT RESOURCE SAVINGS THE RTC PAID OFF THE THRIFT'S DEPOSITORS IN NOVEMBER 1990 AND SAID THE INSTITUTION'S LOSSES TOTALED 2784 MILLION 9304120108 930412 INTERNATIONAL OUSTER OF MORDOVIA'S ELECTED PRESIDENT MAY HOLD WARNING FOR RUSSIAN VOTE BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL SARANSK RUSSIA MORDOVIANS ARE TURNING BACK THE CLOCK MORDOVIANS GAVE THEIR FIRST POSTCOMMUNIST PRESIDENT VASSILY GUSLYANNIKOV 15 MONTHS TO TRY DEMOCRACY AND FREEMARKET REFORMS THEN LAST WEEK THE SUPREME SOVIET DECLARED IT HAD ALL BEEN A BIG MISTAKE IT VOTED RESOUNDINGLY TO ABOLISH HIS JOB AND THREW HIM OUT OF OFFICE THE SUPREME SOVIET DECLARED ITSELF THE HIGHEST AUTHORITY IN THIS AUTONOMOUS REPUBLIC AND SET ABOUT REVIVING SOCIALIST METHODS SOCIALISM HAD GREAT GUARANTEES SAYS THE VICTORIOUS NIKOLAI BIRYUKOV CHAIRMAN OF THE MORDOVIAN SUPREME SOVIET THE PEOPLE HAVE LOST A LOT OF THOSE GUARANTEES WE WILL GIVE THEM BACK I PERSONALLY WOULDN'T CALL CAPITALISM THE MOST ADVANCED THING AVAILABLE TO MANKIND MR GUSYLANNIKOV LAMENTS THAT PEOPLE AREN'T COMING OUT TO PROTEST THEY'RE SITTING HOME AND WATCHING TV THEY'RE MAKING A GREAT MISTAKE HE ADDS THEY THINK THAT IF THEY GO BACK THEY'LL HAVE A GOOD LIFE THEY DON'T REALIZE THEY'RE BEING DUPED IN MOSCOW AND SARANSK MORDOVIA'S CAPITAL PEOPLE TALK ABOUT WHETHER RUSSIAN PRESIDENT BORIS YELTSIN WILL SOON MEET A SIMILAR REJECTION THE NATIONAL REFERENDUM SCHEDULED FOR APRIL 25 WILL PROVIDE A MORE DEMOCRATIC TEST THAN MORDOVIA'S VOTE OF PARLIAMENT BUT THE SITUATION IN SARANSK SHOWS HOW READY COMMUNISTS ARE TO COME BACK GIVEN AN OPPORTUNITY POLITICAL ENEMIES OF MR YELTSIN HAVE DECLARED MORDOVIA A TESTING GROUND VLADIMIR ISAKOV A REACTIONARY WHO HAS REPEATEDLY CALLED FOR MR YELTSIN'S IMPEACHMENT RECENTLY VISITED SARANSK TO CHEER THE COMMUNISTS ON HE TOLD PRAVDA AFTERWARD THAT THE SITUATION IN MORDOVIA REFLECTS ALL OF RUSSIA'S PROBLEMS MR YELTSIN ISSUED A DECREE INSTRUCTING PRESIDENT GUSLYANNIKOV TO CONTINUE IN OFFICE AND DISPATCHED SERGEI SHAKHRAI HIS VICE PREMIER FOR REGIONAL CONFLICTS TO SARANSK MR SHAKHRAI TOLD PARLIAMENT IT HAD ACTED UNCONSTITUTIONALLY AND THE RUSSIAN GOVERNMENT WOULD DO BUSINESS ONLY WITH MR GUSYLANNIKOV THE DEPUTIES LISTENED FOR FIVE MINUTES THEN THEY DISMISSED HIM MR GUSLYANNIKOV 43 YEARS OLD REFUSES TO QUIT HE NOTES THAT HIS TELEPHONES ARE STILL WORKING AND SO IS THE ELECTRICITY IN HIS BUILDING EVEN SO HE IS A BIT ISOLATED IN HIS GRAND OFFICE ACROSS THE SQUARE FROM THE SUPREME SOVIET BUILDING A FEW AIDES COME AND GO QUIETLY THE PHONES DON'T RING OFTEN NOT SO LONG AGO POLITICS IN MORDOVIA WERE THE REVERSE OF TODAY FIFTEEN MINUTES AFTER MR YELTSIN BANNED THE COMMUNIST PARTY FOLLOWING THE DEFEAT OF THE ATTEMPTED AUGUST 1991 COUP AN ENTHUSIASTIC MR GUSYLANNIKOV WHO WAS THEN HEAD OF MORDOVIA'S DEMOCRATIC REFORM MOVEMENT RUSHED TO THE OFFICES OF THE LOCAL COMMUNIST PARTY TO TAKE POWER IN DECEMBER 1991 THE DEMOCRAT'S FUTURE SEEMED SECURED WHEN HE WON A POPULAR ELECTION FOR PRESIDENT BY A VOTE OF 218849 TO 141052 VOTES FOR MR BIRYUKOV THE SUPREME SOVIET HEAD MR GUSYLANNIKOV WASN'T PARLIAMENT'S CHOICE HOWEVER SEVERAL YEARS EARLIER HE HAD DUG UP SOME SCANDALS IN THE SPIRIT OF GLASNOST HE PUBLISHED ALLEGATIONS THAT PARTY OFFICIALS HAD GIVEN THEMSELVES CARS AND APARTMENTS AHEAD OF COMMON CITIZENS WHO HAD BEEN WAITING YEARS FOR THEM IN A WELLPUBLICIZED INCIDENT IN 1990 MR GUSYLANNIKOV WAS BEATEN UP AND HIS LEG BROKEN THE DAY BEFORE HE PLANNED TO SPEAK AT PARLIAMENT ON THE SUBJECT AS PRESIDENT MR GUSYLANNIKOV WAS INSPIRED BY MR YELTSIN'S LEADERSHIP HE ENDORSED THE RUSSIAN GOVERNMENT'S DECISION TO FREE PRICES AND TRIED TO EXPLAIN TO PEOPLE THAT INFLATION HAD MORE TO DO WITH MONEY SUPPLY AND SOFT CREDITS THAN THE PRICE STRUCTURE HIS ADMINISTRATION TRIED TO PRIVATIZE FACTORIES AND APARTMENTS BUT THE PARLIAMENT BLOCKED HIS EVERY MOVE MR GUSYLANNIKOV'S FREQUENT PLEAS TO MOSCOW FOR FINANCIAL AND MORAL SUPPORT ALSO FELL ON DEAF EARS IT BECAME QUICKLY CLEAR TO HIM THAT THE NATIONAL GOVERNMENT WAS TOO DISORGANIZED AND BOGGED DOWN IN ITS OWN PARLIAMENTARY CONFLICTS TO HELP BUT THE WORST THING GOING FOR MR GUSYLANNIKOV HAS BEEN SKYROCKETING INFLATION IT HAS GIVEN CAPITALISM A BAD NAME A 68YEAR OLD PENSIONER WHO WILL ONLY GIVE HER FIRST NAME MARIA PULLS A CART OF POTATOES THROUGH SOVIETSKAYA SQUARE I CAN'T SAY WE'RE STARVING NOW SAYS MARIA BUT BUTTER COSTS MORE THAN 1000 RUBLES A KILO AND MY PENION IS 8175 RUBLES A MONTH HOW CAN WE LIVE LIKE THIS AT LEAST DURING STALIN THERE WAS DISCIPLINE WHEN MY PENSION WAS ONLY 107 RUBLES A MONTH I HAD EVERYTHING SAYS VYACHISLAV LIBAKVINA GENERAL DIRECTOR OF THE LISMA LIGHTBULB FACTORY INFLATION IS EATING UP EVERYTHING THAT WE HAVE WE ARE ON THE BRINK FOR NOW THE COMMUNISTS CONCEDE THAT THEY DON'T HAVE MUCH OF A RESCUE PLAN MR BIRYUKOV SAYS PARLIAMENT IS WORKING ON ITS PROGRAM NOW HE PERSONALLY ADVOCATES STRONGER STATE CONTROL OF EVERYTHING HE BLAMES INFLATION ON FREE PRICES AND BELIEVES IT CAN BE CONTROLLED BY FIXING PRICES HE SAYS PARLIAMENT WILL AT ONCE ENFORCE DISCIPLINE AND RESPONSIBILITY HE DOESN'T LIKE THE IDEA OF PRIVATE PROPERTY BECAUSE RUSSIANS ARE ACCUSTOMED TO THIS COLLECTIVE PROPERTY OWNERSHIP HE ADDS GOD GAVE LAND TO US AND IT BELONGS TO HIM BORIS STARADUBOV MR BIRYUKOV'S ASSISTANT CONCEDES THE SITUATION IS A LITTLE BIT MORE COMPLICATED INSTEAD OF A RETURN TO THE PAST HE WANTS A MORE ORDERLY TRANSITION TO THE MARKET YOU CAN'T OVERTURN THE ECONOMY IN JUST ONE YEAR LIKE THEY'VE TRIED TO DO HE SAYS BUT IT'S A DIFFICULT MATTER AND WE'VE COME TOO FAR TO GO BACK MEANWHILE MR GUSYLANNIKOV IS WAITING FOR A RULING FROM THE CONSTITUTIONAL COURT IN MOSCOW THAT WILL DECIDE HIS FATE HE ARGUES THAT SINCE HE WAS POPULARLY ELECTED THE PEOPLE MUST DECIDE IF THEY WANT HIM TO LEAVE PARLIAMENT SAYS THAT SINCE IT CREATED THE POSITION OF PRESIDENT IT CAN TAKE IT AWAY IF THE COURT RULES AGAINST HIM AND IN FAVOR OF PARLIAMENT HE WILL QUIT THIS SCENARIO WAS WRITTEN A LONG TIME AGO HE SAYS THE DEPUTIES AREN'T INTERESTED IN WHETHER THE GOVERNMENT DID ANYTHING RIGHT OR NOT THEY JUST WANT POWER 9304120107 930412 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SEEKING TO BOOST PUBLIC ACCESS TO EUROPEAN COMMUNITY DOCUMENTS AND DATA THE EC COMMISSION IS MOVING TOWARD SETTING MINIMUM FREEDOMOFINFORMATION RULES SUGGESTIONS OUTLINED IN AN INTERNAL COMMISSION DOCUMENT WOULD REQUIRE TURNING OVER WITHIN TWO MONTHS OF A REQUEST ANY INFORMATION THAT ISN'T SPECIFICALLY EXEMPTED THE PAPER RECOMMENDS AN AGREEMENT WITH BINDING RULES FOR THE COMMISSION EUROPEAN PARLIAMENT AND OTHER EC BODIES EXCEPT FOR COURTS A COMMISSION OFFICIAL SAID THE IDEA FOR THE ACCORD HAS BEEN WELL RECEIVED THE COMMISSION BELIEVES AN AGREEMENT WITH MINIMUM REQUIREMENTS IS PREFERABLE TO LEGISLATION ESTABLISHING SPECIFIC RULES FOR AGENCIES WITH VARYING ROLES THE COMMISSION INTENDS TO ISSUE A FINAL PROPOSAL BEFORE A JUNE SUMMIT OF EC LEADERS IN DENMARK A GALLUP POLL FOR JAPAN'S FOREIGN MINISTRY FOUND THAT 79 OF US OPINION LEADERS BUT ONLY 50 OF THE AMERICAN PUBLIC REGARD JAPAN AS A TRUSTWORTHY ALLY CRITICS CITED JAPAN'S TRADE POLICY ECONOMIC RIVALRY AND PREOCCUPATION WITH SELFINTERESTS THE POLL ALSO SHOWED 58 OF OPINION LEADERS AND 47 OF THE PUBLIC BELIEVE JAPAN DOESN'T PLAY A GLOBAL ROLE COMMENSURATE WITH ITS ECONOMIC STRENGTH ON FUTURE JAPANUS RELATIONS 41 OF OPINION LEADERS PREDICTED IMPROVEMENT 33 NO CHANGE AND 21 DETERIORATION YUGOSLAVIA DEVALUED ITS DINAR AGAINST MAJOR WESTERN CURRENCIES REFLECTING CHAOS IN THE WARTORN ECONOMY WHERE INFLATION IS RUNNING AT 240 A MONTH THE EXCHANGE RATE WAS SET AT 48000 DINARS TO THE US DOLLAR DOWN 98 FROM 750 THE DINAR HAD BECOME PRACTICALLY WORTHLESS UNDERMINED BY UNFETTERED PRINTING OF BANKNOTES TO FINANCE THE SERBIAN WAR IN CROATIA AND BOSNIAHERZEGOVINA THE UNITED NATIONS LAST MAY IMPOSED TRADE SANCTIONS ON YUGOSLAVIA NOW MADE UP OF SERBIA AND MONTENEGRO AND THE ECONOMIC ISOLATION FURTHER WEAKENED THE ECONOMY ITALIAN TRADE UNIONS AND EMPLOYERS TENTATIVELY AGREED ON A NEW SYSTEM OF COLLECTIVE BARGAINING AIMED AT CONTAINING LABOR COSTS THE ACCORD IS TO BE PART OF A COMPREHENSIVE AGREEMENT ON SETTING PAY THE FIRST STEP CAME LAST JULY WITH THE ABOLITION OF AUTOMATIC ADJUSTMENT OF WAGES FOR INFLATION THE LATEST ACCORD GUARANTEES STABILITY IN PURCHASING POWER CALLS ON THE GOVERNMENT TO SET AN ANNUAL INFLATION TARGET AND APPLY SANCTIONS IF IT ISN'T MET AND REQUIRES UNIONS EMPLOYERS AND THE GOVERNMENT TO MEET AT LEAST TWICE A YEAR TO DISCUSS EMPLOYMENT POLICY AND ITALY'S ECONOMIC OUTLOOK TRADE BETWEEN SOUTH KOREA AND NORTH KOREA FELL SHARPLY AMID TENSION CAUSED BY THE NORTH'S DECISION TO PULL OUT OF A GLOBAL AGREEMENT ON NUCLEAR DISARMAMENT SEOUL SAID TOTAL TRADE WHICH ROSE 11 IN 192 TO 213 MILLION FROM 1991 DROPPED 19 IN THE FIRST QUARTER TO 41 MILLION DRAGGED DOWN BY A 55 PLUNGE IN MARCH TO 176 MILLION ON MARCH 12 NORTH KOREA WITHDREW FROM THE NUCLEAR TREATY TO AVOID INTERNATIONAL INSPECTIONS SOUTH KOREA ALSO BLAMED THE TRADE DROP ON A WORSENING FOREIGNCURRENCY SHORTAGE IN NORTH KOREA'S NEARBANKRUPT ECONOMY SOUTH KOREA MOVED TO RESTRUCTURE ITS ANTIQUATED FINANCIAL SYSTEM OPENING TALKS ABOUT OVERHAULING THE COUNTRY'S MARKETS THE CURRENT SYSTEM HAS STRICT BARRIERS BETWEEN FINANCIAL INSTITUTIONS THE GOVERNMENT JOINING A GLOBAL BANDWAGON TO RELAX BOUNDARIES HOPES TO LIBERALIZE THE ECONOMY BY PROMOTING COMPETITION AND APPLYING MODERN EFFICIENT METHODS TO FINANCIAL MANAGEMENT THE PROPOSALS INCLUDE SPEEDING UP DEREGULATION OF INTEREST RATES AND EASING LENDING RULES FOR BANKS THE PLAN WHICH REQUIRES FINANCE MINISTRY APPROVAL WAS DRAFTED BY A GOVERNMENTCOMMISSIONED RESEARCH PANEL THE FINANCIAL SYSTEM RESTRUCTURING COMMITTEE THE CHANGES ARE TO BE IMPLEMENTED OVER FIVE YEARS THE COMMITTEE SAID THE GOVERNMENT SHOULD SET UP CLEAR GUIDELINES FOR RESCUING AILING FINANCIAL INSTITUTIONS IT ALSO SUGGESTED CHARGING A SURTAX ON FOREIGN CAPITAL OR SHORTTERM CAPITAL FLOWS TO TRY TO PREVENT FOREIGNERS FROM GETTING WINDFALL GAINS THROUGH INTERESTRATE ARBITRAGE BETWEEN SOUTH KOREA AND OTHER COUNTRIES THE AVERAGE AUSTRALIAN FAMILY CONSUMES 936 CANS OF BEER 61 BOTTLES OF WINE AND 20 BOTTLES OF SPIRITS A YEAR THE PRIVATE AUSTRALIAN DRUG FOUNDATION SAID THE FAMILY A GRANDFATHER MOTHER FATHER AND TWO TEENAGERS ALSO USES ABOUT 67 DRUG PRESCRIPTIONS AND SMOKES 1144 CIGARETTES A YEAR BULGARIA'S DEFENSE MINISTRY WANTS TO SELL 20 OLD MIG PLANES FOR 20000 EACH OR TO SWAP THEM FOR OTHER PLANES FOR THE REPUBLIC'S AVIATION MUSEUM 9304120106 930412 WHO'S NEWS BROWNFORMAN CORP BROWNFORMAN CORP LOUISVILLE KY JAMES B CHILES PRESIDENT OF THIS CONSUMER PRODUCTS CONCERN'S LENOX CHINA UNIT WAS NAMED SENIOR VICE PRESIDENT OF PRODUCTION AT BROWNFORMAN HE IS SUCCEEDED BY RICHARD E STEARNS WHO WAS PREVIOUSLY PRESIDENT OF THE UNIT'S TABLETOP GROUP JOHN P BRIDENDALL SENIOR VICE PRESIDENT AND DIRECTOR OF CORPORATE DEVELOPMENT FOR BROWNFORMAN WILL SERVE AS INTERIM CHIEF FINANCIAL OFFICER OF LENOX SUCCEEDING ELWOOD L LAFORGE JR WHO RESIGNED 9304120105 930412 CREDIT RATINGS MOODY'S TO REVIEW SEQUA CORP'S DEBT NEW YORK MOODY'S INVESTORS SERVICE PLACED SEQUA CORP'S LONGTERM DEBT RATINGS UNDER REVIEW FOR A POSSIBLE DOWNGRADE CITING SUSPENSION OF WORK AT ONE OF THE COMPANY'S UNITS ABOUT 500 MILLION IN LONGTERM DEBT WAS AFFECTED CURRENTLY MOODY'S RATES SEQUA'S SENIOR DEBT BA1 AND ITS SUBORDINATED DEBT BA3 MOODY'S NOTED THAT LAST WEEK AS PART OF A SETTLEMENT WITH THE FEDERAL AVIATION ADMINISTRATION SEQUA'S CHROMALLOY RESEARCH & TECHNOLOGY UNIT ORANGEBURG NY PAID THE FAA 5 MILLION AND AGREED TO SUSPEND ITS JETENGINE COMPONENT REPAIR OPERATIONS SEQUA SAID THE SHUTDOWN WOULD NEGATIVELY IMPACT ITS EARNINGS CHROMALLOY RESEARCH & TECHNOLOGY IS THE LARGEST PART OF SEQUA'S CHROMALLOY GAS TURBINE DIVISION BUT THAT UNIT IS ALREADY STRUGGLING DUE TO THE DECLINE IN THE AEROSPACE INDUSTRY IN THE FIRST QUARTER SEQUA SAID PROFITS AT CHROMALLOY GAS TURBINE WOULD BE 50 BELOW THE YEARAGO LEVEL EVEN WITH CHROMALLOY RESEARCH & TECHNOLOGY OPERATING MOODY'S SAID IT PLANS TO EVALUATE THE CONTINUING DETERIORATION OF THE COMPANY'S GAS TURBINE BUSINESS IN THE 1992 FIRST QUARTER SEQUA POSTED NET INCOME OF 4 MILLION OR 34 CENTS A SHARE ON REVENUE OF 4609 MILLION IN 1992 CHROMALLOY GAS TURBINE ACCOUNTED FOR 46 OF SEQUA'S 188 BILLION IN REVENUE SEQUA ALSO HAS INTERESTS IN INDUSTRIAL EQUIPMENT SPECIALTY CHEMICALS TRANSPORTATION AND INDUSTRIAL SERVICES 9304120103 930412 SEC INQUIRIES MAY TAKE LONGER DUE TO BUDGET CUTS WASHINGTON OFFICIALS AT THE SECURITIES AND EXCHANGE COMMISSION SAID INVESTIGATIONS INVOLVING COMPLEX FRAUD SCHEMES AND DIFFICULT ACCOUNTING ISSUES MAY TAKE LONGER TO COMPLETE AS A RESULT OF STAFF CUTS MANDATED BY THE CLINTON ADMINISTRATION'S FISCAL 1994 BUDGET PLAN THE BUDGET PLAN WOULD REDUCE THE SEC'S OVERALL STAFF BY ABOUT 42 PEOPLE AT A TIME WHEN THE SEC WANTS TO BEEF UP ITS SUPERVISION OF THE MUTUALFUND INDUSTRY WHICH HAS GROWN SUBSTANTIALLY IN RECENT YEARS THE SEC PLANS STAFF CUTS IN SEVERAL DIVISIONS INCLUDING ENFORCEMENT TO ACCOMMODATE THE ADDITION OF ABOUT 15 NEW MUTUALFUND EXAMINERS JAMES MCCONNELL THE SEC'S EXECUTIVE DIRECTOR SAID THE CUTS SHOULDN'T AFFECT MAJOR CASES BUT ADDED THAT THERE MIGHT BE A FEW CASES WE DECIDE NOT TO PURSUE IF THEY ARE NOT SUFFICIENTLY IMPORTANT SIMILARLY THE SEC MAY TAKE LONGER TO WRAP UP THE CASES IT DOES DECIDE TO BRING 9304120101 930412 INTERNATIONAL BRAZIL HAS A NUMBER OF CONTENDERS TO THRONE SHOULD VOTERS WANT TO RETURN TO A MONARCHY BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO IT'S GOOD TO BE THE KING BUT IT'S HARD WORK TO BE RUNNING FOR KING AT 11 O'CLOCK ON A HOT NIGHT ALBERTO DE ORLEANS E BRAGANCA IS SITTING AT A LARGE OVAL TABLE EXPLAINING TO A GROUP OF 50 PEOPLE THE VIRTUES OF MONARCHY WE NEED AN IMPARTIAL MODERATING POWER HE SAYS ONLY A KING CAN DO THIS THEN COMES QUESTION TIME A TAXI DRIVER STANDS UP AND INQUIRES WHAT WOULD A KING DO FOR THE FAULTY AUTOMATIC GEARBOX OF HIS VOLKSWAGEN ANSWER NOT MUCH IT IS ALL IN A DAY'S WORK FOR DOM ALBERTO AS HE AND A HANDFUL OF OTHER BRAZILIAN PRINCES HIT THE CAMPAIGN TRAIL HOPING TO BE VOTED BACK TO THE OFFICE THAT WAS TAKEN AWAY FROM THEIR ANCESTOR EMPEROR PEDRO II IN 1889 ELECTING A KING MIGHT SOUND LIKE AN OXYMORON BUT IT IS A REAL POSSIBILITY IN BRAZIL ON APRIL 21 LATIN AMERICA'S BIGGEST NATION IS HOLDING A PLEBISCITE ON WHAT FORM AND SYSTEM OF GOVERNMENT IT SHOULD HAVE AND NOW AFTER STUNNING THE WORLD BY OUSTING PRESIDENT FERNANDO COLLOR DE MELLO ON CORRUPTION CHARGES LAST YEAR BRAZIL COULD CROWN THIS DEMOCRATIC VICTORY BY VOTING IN A KING IT IS STILL A LONG SHOT THE EXISTING PRESIDENTIAL SYSTEM AND A PARLIAMENTARY REPUBLIC BOTH OUTPOLL MONARCHY BUT IT IS A SERIOUS ENOUGH POSSIBILITY THAT ONE BRAZILIAN NEWSPAPER LAUNCHED A CONTEST FOR COURT JESTER IN A COUNTRY WHERE OPENLY SUPPORTING MONARCHY WAS UNCONSTITUTIONAL FIVE YEARS AGO POLLS GIVE MONARCHY 20 WITH NINE DAYS TO GO THE MONARCHISTS THINK THEY CAN PULL IT OFF I COULD BE A REAL KINGMAKER JOKES POLITICAL CONSULTANT HELIO BLOCH WHO IS RUNNING THE CAMPAIGN THE QUESTION IS WHICH KING THE POSSIBILITY OF MONARCHY'S RETURN IS REAWAKENING A DECADESOLD BATTLE ROYAL AMONG BRAZIL'S BLUE BLOODS THAT IS DISTINCTLY UNREGAL LUIZ DE ORLEANS E BRAGANCA SEES NO REASON FOR DISPUTE I'M THE OLDEST SON OF DOM PEDRO HENRIQUE AND THEREFORE I SHOULD ASSUME THIS FUNCTION SAYS THE 54YEAROLD PRINCE WHOSE LEAFLETS IDENTIFY HIM AS HEAD OF BRAZIL'S IMPERIAL HOUSEHOLD BRAZIL'S MONARCHY CALLED ITSELF AN EMPIRE OWING TO BRAZIL'S SIZE NOT SO REPLIES PEDRO GASTAO DE ORLEANS E BRAGANCA DOM LUIZ'S 80YEAROLD COUSIN HE CAN BARK ALL HE WANTS I'M THE ELDEST I'M THE HEAD OF THE IMPERIAL HOUSEHOLD ANTONIO HENRIQUE CUNHA BUENO A MONARCHIST MEMBER OF PARLIAMENT SAYS THEORETICALLY THERE ARE 17 CANDIDATES BUT IN PRACTICE THERE ARE ONLY FOUR NONE OF WHICH INCLUDES DOM LUIZ OR DOM PEDRO GASTAO BUT JOAO HENRIQUE DE ORLEANS E BRAGANCA A 38YEAROLD PRINCE SAYS THERE ARE 12 POSSIBLE CANDIDATES INCLUDING HIMSELF A BRIEF HISTORICAL INTERLUDE IS IN ORDER WHEN BRAZIL'S LAST EMPEROR PEDRO II WHO WAS OVERTHROWN IN 1889 DIED TWO YEARS LATER HIS ELDER DAUGHTER PRINCESS ISABEL WAS THE DYNASTIC SUCCCESSOR HER NONEXISTENT CROWN SHOULD THEN HAVE BEEN PASSED ON TO HER ELDEST SON DOM PEDRO DE ALCANTARA BUT HE FELL IN LOVE WITH A MERE COUNTESS TO LET HIM MARRY HER PRINCESS ISABEL ORDERED HER SON TO RENOUNCE HIS AND HIS FUTURE HEIRS' CLAIM TO THE THRONE THE DYNASTIC SUCCESSOR THUS BECAME PRINCESS ISABEL'S SECOND SON DOM LUIZ FATHER OF DOM PEDRO HENRIQUE WHO HIMSELF FATHERED 12 CHILDREN OF WHICH DOM LUIZ IS THE OLDEST HENCE HIS CLAIM TO BEING THE CURRENT HEAD OF THE IMPERIAL HOUSEHOLD BUT WHILE DOM LUIZ CLAIMS THAT A RENUNCIATION IS AN IRREVERSIBLE UNILATERAL ACT DOM PEDRO GASTAO THE ELDEST SON OF DOM PEDRO DE ALCANTARA REFUSES TO RECOGNIZE IT AND CLAIMS HE IS THE LEGITIMATE HEIR YOU CAN'T RENOUNCE SOMETHING YOU NO LONGER HAVE SAYS THE BUSHYEYEBROWED MUSTACHIOED DOM PEDRO GASTAO SEATED IN THE LIVING ROOM OF THE PALACIO GRAOPARA IN THE IMPERIAL RESORT TOWN OF PETROPOLIS SURROUNDED BY PORTAITS OF HIS ANCESTORS IT'S LIKE MY SELLING YOU SOMETHING I DON'T OWN BESIDES HIS RENUNCIATION LETTER WASN'T NOTARIZED IT HAS NO VALUE TO RESOLVE THIS KINGSIZED DILEMMA MANY PRINCES SAY CONGRESS SHOULD PICK THE KING FROM AMONG ROYAL FAMILY MEMBERS THROUGH THE CRASSLY DEMOCRATIC PROCESS OF HEARINGS THIS MAKES DOM LUIZ'S BLUE BLOOD BOIL EITHER MONARCHY IS HEREDITARY AND FOLLOWS DYNASTIC LAW OR IT HAS NO REASON TO BE HE SAYS AMID ALL THIS UNCERTAINTY ONE THING IS FOR SURE IF DOM LUIZ BECOMES KING HE WON'T BE INVOLVED IN ANY BRITISHSTYLE ROYAL SEX SCANDALS IN FACT EVEN MANY OF THOSE WHO DEFEND DOM LUIZ'S DYNASTIC CLAIM FIND HIM TOO AUSTERE TO BE KING DOM LUIZ IS A DEVOUT ROMAN CATHOLIC WHO IS NOT ONLY A BACHELOR BUT CELIBATE AND IS TIED TO A HIGHLY CONSERVATIVE ORGANIZATION THAT MANY BELIEVE DISQUALIFIES HIM TO BE AN IMPARTIAL MONARCH THE MOVEMENT DISAPPROVES OF THINGS SUCH AS COMMUNISM AND BATHING BEACHES THE CATHOLIC DOCTRINE ALWAYS SAID THAT BEACHES ARE IMMORAL SAYS DOM LUIZ AFTER THE BIKINI THE STRING AND NOW TOPLESS IT ISN'T EASY TO REMAIN CHASTE IN SUCH AN ATMOSPHERE DOM LUIZ SAYS HE IS UNMARRIED BECAUSE THAT WOULD DISTRACT HIM FROM HIS DUTY AS PRINCE TO BE IN THE FRONT LINE IN THE SUBVERSIVE WAR AGAINST COMMUNISM BUT OTHER FAMILY MEMBERS WONDER SHOULDN'T HIS DUTY AS PRINCE BE TO HAVE CHILDREN TO PERPETUATE THE DYNASTY DOM LUIZ SAYS HE HAS ENOUGH MARRIED BROTHERS TO KEEP THE CROWN IN HIS FAMILY AND HE CAN ALWAYS GET MARRIED IF NEED BE BUT DOM PEDRO GASTAO SAYS THERE AREN'T THAT MANY BLUEBLOODED PRINCESSES WHO WILL MARRY A 54YEAROLD MAN WHO IS SMALL AND LIMPS BUT THERE IS ONE THING ALL OF THE ROYALS AGREE ON BRAZIL WOULD BE FAR BETTER OFF WITH A KING TO THOSE WHO SAY RETURNING TO MONARCHY IS GOING BACK TO THE PAST DOM ALBERTO RETORTS IN HIS CAMPAIGNING THAT THE CURRENT PRESIDENT ITAMAR FRANCO WHO RECENTLY SUGGESTED VOLKSWAGEN RELAUNCH THE BEETLE HERE IS IN THE VANGUARD OF BACKWARDNESS IN GENERAL THE ROYALS HAVE A FIELD DAY IN THEIR APPEARANCES COMPARING BRAZIL'S 67 YEARS AS AN INDEPENDENT MONARCHY TO ITS 104 YEARS AS A REPUBLIC WHILE AN EMPIRE THEY SAY BRAZIL HAD A STABLE CURRENCY NOT SOMETHING THAT WAS JUST A MEANS OF PAYMENT THAT YOU IMMEDIATELY CONVERT INTO DOLLARS TO WARD OFF HIGH INFLATION SAYS DOM ALBERTO THE COUNTRY WAS ONE OF THE FIRST TO HAVE THE TELEPHONE AND HAD ONE OF THE WORLD'S BIGGEST RAIL NETWORKS THEY CONVENIENTLY AVOID MENTIONING THE WIDESPREAD PRACTICE OF SLAVERY DURING THE MONARCHY BUT AS A REPUBLIC BRAZIL HAS HAD SEVEN CONSTITUTIONS TWO DICTATORSHIPS TWO PRESIDENTIAL RESIGNATIONS FOUR DEPOSED PRESIDENTS AND DECADES OF HIGH INFLATION A KING ACTING AS AN ARBITER ABOVE THE FRAY IN A PARLIAMENTARY MONARCHY WOULD GIVE BRAZIL THE STABILITY AND MORAL LEADERSHIP TO PUT IT BACK ON TRACK MONARCHISTS ARGUE 9304120100 930412 LETTERS TO THE EDITOR THINK AGAIN THERE IS AN HIV EPIDEMIC ROBERT ROOTBERNSTEIN'S MARCH 17 EDITORIALPAGE ARTICLE RETHINKING AIDS IS A PERFECT EXAMPLE OF AIDSSPEAK MR ROOTBERNSTEIN ASSURES US THERE IS LITTLE TO WORRY ABOUT FROM THE HIV EPIDEMIC AS LONG AS WE HAVE A NORMAL IMMUNE SYSTEM HE USES THE TERMS AIDS AND HIV INTERCHANGEABLY WITHOUT POINTING OUT THAT AIDS IS SIMPLY THE TERMINAL STAGE OF HIV DISEASE AND THAT THE AIDS STATISTICS HE QUOTES REPRESENT HISTORICALLY WHAT HAPPENED IN AMERICA 10 TO 15 YEARS AGO AND NOT WHAT IS TRANSPIRING IN THE HIV EPIDEMIC SWEEPING OUR NATION TODAY MR ROOTBERNSTEIN POINTS OUT THAT IN SUCH CITIES AS LOS ANGELES AND NEW YORK ONLY 510 OF FEMALE PROSTITUTES ARE HIVINFECTED THAT INDEED IS A STRANGE STATISTIC BECAUSE WHEN I RECENTLY CONTACTED THE NEW YORK CITY PUBLIC HEALTH DEPARTMENT I FOUND THAT PUBLIC HEALTH OFFICIALS ARE NOT MONITORING THE HIV EPIDEMIC IN PROSTITUTES THEY MONITOR ONLY THE TERMINAL STAGE OF HIV DISEASE WHICH IS CALLED AIDS PUBLIC HEALTH OFFICIALS HAVE NO STATISTICS ON THE INFECTION RATE OF PROSTITUTES IN NEW YORK CITY WE DO KNOW THAT THE CDC MMWR IN MARCH 1987 REPORTED THAT 57 OF THE PROSTITUTES IN NEWARK NJ WERE ALREADY INFECTED BUT FACED WITH AN EPIDEMIC OF THAT PROPORTION PUBLIC HEALTH OFFICERS DECIDED TO DO NOTHING WE ARE TOLD THAT THERE IS LITTLE SPREAD OF THE DISEASE FROM FEMALE PROSTITUTES TO MALES BUT SINCE HIV DISEASE IS NOT A REPORTABLE DISEASE IN THE MAJORITY OF THE STATES WHERE THIS EPIDEMIC IS SPREADING RAPIDLY IE CALIFORNIA AND NEW YORK THERE ARE NO PUBLIC HEALTH STATISTICS ON HOW FAR HIV DISEASE HAS SPREAD AND IT IS HIV DISEASE THAT IS THE EPIDEMIC NOT AIDS THE ONLY NATIONWIDE SURVEILLANCE STUDY ON THE SPREAD OF HIV DISEASE WAS PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE ON AUG 13 1992 THE SOCALLED CDC SENTINEL HOSPITAL STUDY THIS STUDY DEMONSTRATED THAT IN THE 20 HOSPITALS BEING MONITORED 47 OF THE PEOPLE ADMITTED TO THE HOSPITALS WERE INFECTED AND ARE GOING TO DIE YET FACED WITH AN EPIDEMIC OF THIS MAGNITUDE MR ROOTBERNSTEIN TELLS US THAT THIS DISEASE WILL INVOLVE ONLY GAY MEN AND MORE PARTICULARLY AN EVERGROWING POPULATION OF URBAN DRUGADDICTED POVERTYRIDDEN MALNOURISHED HOPELESS AND MEDICALLYDEPRIVED PEOPLE MR ROOTBERNSTEIN CITED STATISTICS ABOUT THE HEMOPHILIA COMMUNITY IN HIS DISCUSSION OF DIFFERENTIAL SUSCEPTIBILITY TO AIDS HOWEVER HE HAS MISINTERPRETED STATISTICS RELATED TO THE INCIDENCE OF AIDS IN THE HEMOPHILIA COMMUNITY HE SUGGESTS THAT PEOPLE WITH HEMOPHILIA PROGRESS TO FULLBLOWN AIDS AT A SLOWER RATE THAN MEMBERS OF OTHER HIVINFECTED POPULATIONS AT THE TIME WHEN OUR COMMUNITY WAS EXPOSED TO HIV ABOUT 50 OF THIS POPULATION WAS UNDER 20 YEARS OF AGE THUS THE HEMOPHILIA COMMUNITY WAS GENERALLY YOUNGER THAN OTHER AFFECTED COMMUNITIES STUDIES HAVE INDICATED THAT THE YOUNGER PATIENTS WOULD BE EXPECTED TO HAVE A LONGER CLINICAL INCUBATION PERIOD IT MAY APPEAR THAT THE HEMOPHILIA COMMUNITY AS A WHOLE PROGRESSES MORE SLOWLY TO AIDS THAN OTHERS AND WE WISH IT WERE TRUE BUT THIS IS NOT THE CASE SECOND MR ROOTBERNSTEIN CITES THE RELATIVELY LOW INCIDENCE OF AIDS AMONG THE PARTNERS OF HIVINFECTED PEOPLE WITH HEMOPHILIA THIS IS A MISREPRESENTATION OF THE IMPACT OF HIV ON THE PARTNERS OF PEOPLE WITH HEMOPHILIA A SHORT TIME AFTER THE AIDS EPIDEMIC STRUCK THE HEMOPHILIA COMMUNITY THERE WAS A SECONDARY EPIDEMIC AMONG SEXUAL PARTNERS OF PEOPLE WITH HEMOPHILIA THAT WAS NEARLY PARALLEL TO THE INITIAL EPIDEMIC IN RESPONSE TO THIS SITUATION A NATIONAL AIDS EDUCATION AND PREVENTION PROGRAM WAS CONDUCTED IN THE HEMOPHILIA COMMUNITY THE PROGRAM WAS ESTABLISHED BY THE NATIONAL HEMOPHILIA FOUNDATION NHF THE CENTERS FOR DISEASE CONTROL AND PREVENTION AND HEALTH RESOURCES AND SERVICES ADMINISTRATION THE EFFORTS OF THOSE INVOLVED IN CARRYING OUT THE PROGRAM THE MEDICAL COMMUNITY MEN AND WOMEN AFFECTED DIRECTLY BY HEMOPHILIA AND HIV AND NHF CHAPTERS HELPED TO REDUCE SUBSTANTIALLY THE NUMBER OF NEW CASES OF HIV AMONG SEXUAL PARTNERS OF PEOPLE WITH HEMOPHILIA YET EVEN TODAY HIV SEROCONVERSIONS HAVE BEEN DOCUMENTED IN 111 116 OF 950 SPOUSES/SEXUAL PARTNERS OF PEOPLE WITH HEMOPHILIA EVALUATED IN A RECENT STUDY TO DATE OF THE 111 HIVPOSITIVE SPOUSES/SEXUAL PARTNERS 69 62 HAVE DEVELOPED CLINICAL AIDS AND HAVE DIED WITHOUT HAVING ANY OTHER HIVASSOCIATED RISK FACTORS LAST MR ROOTBERNSTEIN STATES THAT THE IMMUNE SYSTEMS OF PEOPLE WITH HEMOPHILIA AND HIV WHO NOW USE ULTRAPURE CLOTTING FACTOR OR RECOMBINANT DNA DERIVED FACTOR HAVE STABILIZED AND EVEN RETURNED TO NORMAL WE ARE SURPRISED BY THIS STATEMENT THE IMMUNE SYSTEMS OF PEOPLE USING THESE KINDS OF PRODUCTS ARE MONITORED HOWEVER THERE HAVE NOT BEEN ANY REPORTS OF IMMUNE FUNCTIONS RETURNING TO NORMAL AMONG PEOPLE WITH HEMOPHILIA AND HIV USING THESE PRODUCTS STUDIES HAVE SUGGESTED HOWEVER POSSIBLE BENEFITS OF MONOCLONAL ULTRAPURE FACTOR VIII CONCENTRATES OVER PRODUCTS OF INTERMEDIATE PURITY IN MAINTAINING CELLULAR IMMUNITY THIS IS HARDLY RETURNING IMMUNE FUNCTION TO NORMAL PARTICULARLY AS WE WITNESS MORE THAN 25 PEOPLE WITH HEMOPHILIA DYING FROM AIDS EACH MONTH WE AGREE WITH THE AUTHOR THAT ALTERNATIVE PATHS SHOULD BE LOOKED AT FOR AIDSPREVENTION THERAPIES AND FOR RECONSTITUTING THE IMMUNE SYSTEM BUT NOT AT THE LIFETHREATENING EXPENSE OF IGNORING CLINICALLY PROVEN AIDS TREATMENTS AND WHILE PURSUING RESEARCH ON HIV AND OTHER POTENTIAL CONTRIBUTORS OR COFACTORS WE MUST NOT DISCOUNT WHAT WE HAVE ALREADY LEARNED AGGRESSIVE ANTIHIV THERAPY PROPHYLACTIC AND THERAPEUTIC INTENTIONS AGAINST OPPORTUNISTIC INFECTIONS AND THE USE OF SAFER SEX TECHNIQUES HAVE PROLONGED AND IMPROVED BOTH THE QUANTITY AND QUALITY OF THE LIVES OF HEMOPHILIA PATIENTS THEIR PARTNERS AND THEIR NEWBORN CHILDREN 9304120099 930412 WHO'S NEWS MINOLTA CAMERA PICKS TASHIMA AS CHAIRMAN OSAKA JAPAN MINOLTA CAMERA CO NAMED HIDEO TASHIMA 58 YEARS OLD AS ITS CHAIRMAN THE POSITION WAS LAST HELD BY MR TASHIMA'S FATHER AND COMPANY FOUNDER KAZUO TASHIMA WHO DIED IN 1985 OSAMU KANAYA 59 WAS NAMED PRESIDENT SUCCEEDING THE YOUNGER MR TASHIMA AT THE COMPANY A MAKER OF CAMERAS BUSINESS EQUIPMENT RADIOMETRIC INSTRUMENTS AND PLANETARIUMS MR KANAYA WAS PREVIOUSLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY'S US SUBSIDIARY MINOLTA CORP RAMSEY NJ HIROSHI FUJII 49 SUCCEEDS HIM IN THAT POSITION MR FUJII WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT OF THE US SUBSIDIARY WHICH CONTRIBUTED BETWEEN 35 TO 40 OF THE JAPANESE PARENT'S 27 BILLION IN ANNUAL REVENUE IN 1992 A SPOKESMAN SAID 9304120098 930412 INTERNATIONAL SOUTH KOREA MAY SLOW SELECTION OF SUPPLIER FOR HIGHSPEED TRAIN SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA THE SOUTH KOREAN GOVERNMENT MAY DELAY THE SELECTION OF A SUPPLIER OF ROLLING STOCK FOR ITS MULTIBILLIONDOLLAR HIGHSPEED RAILWAY BECAUSE OF BUDGETARY CONSTRAINTS OFFICIALS AT THE TRANSPORTATION MINISTRY SAID WE ARE SERIOUSLY CONSIDERING DELAYING FOR ONE OR TWO YEARS THE COMPLETION OF THE HIGHSPEED RAILWAYS DUE TO FINANCIAL STRAINS ON THE GOVERNMENT BUDGET AND THIS WILL AFFECT THE SELECTION PROCESS OF THE TYPE OF CARS FOR IT A MINISTRY OFFICIAL SAID RECENTLY TRANSPORTATION MINISTER LEE KYEICK SAID IN HIS REPORT TO PRESIDENT KIM YOUNGSAM THAT THE GOVERNMENT WILL SELECT A SUPPLIER FOR THE PROJECT DURING THE FIRST HALF OF THIS YEAR GROUNDWORK ON A LINE TO LINK SEOUL AND THE SOUTHERN PORT CITY OF PUSAN BEGAN IN JUNE WITH COMPLETION SCHEDULED IN THE YEAR 2000 ACCORDING TO THE MINISTRY OFFICIAL THE COMPLETION OF THE PROJECT NOW IS ESTIMATED TO COST ABOUT 142 TRILLION WON 178 BILLION MORE THAN DOUBLE THE ESTIMATE OF 584 TRILLION WON THOUGHT TO BE NEEDED IN 1988 WHEN THE PROJECT WAS DRAFTED SOARING LAND PRICES ACCOUNTED FOR MOST OF THE PRICE DIFFERENCES THE OFFICIAL SAID COMPETING FOR THE 298MILELONG HIGHSPEED RAILWAY PROJECT ARE TECHNOLOGIES FROM FRANCE GERMANY AND JAPAN THE PROSPECTIVE SUPPLIERS HAVE WAGED A FIERCE BATTLE FOR YEARS USING COMMERCIAL AND DIPLOMATIC CHANNELS A VISIT TO SEOUL BY FRENCH PRESIDENT FRANCOIS MITTERRAND IN LATE APRIL OR EARLY MAY IS WIDELY SPECULATED TO BE RELATED TO THE BIDDING FOR THE RAILWAY PROJECT 9304120097 930412 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CEPHALON INC AN OFFERING OF TWO MILLION NEW SHARES DISCOVERY ZONE INC AN INITIAL OFFERING OF 23 MILLION SHARES VIA MERRILL LYNCH & CO AND KIDDER PEABODY & CO EPIC HEALTHCARE GROUP INC AN OFFERING OF 160 MILLION PRINCIPAL AMOUNT OF ITS SENIOR SUBORDINATED NOTES DUE 2003 VIA MORGAN STANLEY & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP HEALTHDYNE TECHNOLOGIES INC AN OFFERING OF UP TO 175 MILLION NEWLY ISSUED COMMON SHARES VIA COWEN & CO NEEDHAM & CO AND INTERSTATE/JOHNSON LANE CORP LEGG MASON INC AN OFFERING OF 50 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES VIA MERRILL LYNCH & CO LEHMAN BROTHERS AND LEGG MASON WOOD WALKER LITCHFIELD FINANCIAL CORP A PUBLIC DEBT OFFERING OF NOTES OF UP TO IN AGGREGATE PRINCIPAL AMOUNT 15000000 VIA JC BRADFORD & CO AND MACDONALD & CO SECURITIES INC METATEC CORP AN OFFERING OF ONE MILLION CLASS A COMMON SHARES VIA LEGG MASON WOOD WALKER WILL MANAGE THE OFFERING NORTHWESTERN STEEL & WIRE AN INITIAL OFFERING OF 7 MILLION COMMON SHARES AND A CONCURRENT OFFERING OF 100 MILLION OF SENIOR NOTES DUE 2001 VIA LEHMAN BROTHERS AND PAINEWEBBER CORP TODAY'S MAN INC AN OFFERING OF TWO MILLION COMMON SHARES VIA ALEX BROWN & SONS INC AND PAINEWEBBER INC VALLEY FASHIONS CORP A FORM 10 REGISTRATION STATEMENT WHEELINGPITTSBURGH CORP AN OFFERING OF 10 MILLION COMMON SHARES VIA SALOMON BROTHERS INC AND MERRILL LYNCH & CO NORTHWESTERN STEEL & WIRE CO'S INITIAL OFFERING OF SEVEN MILLION COMMON SHARES WILL BE HANDLED BY LEHMAN BROTHERS AND PAINEWEBBER INC AND A CONCURRENT OFFERING OF 100 MILLION OF SENIOR NOTES DUE 2001 WILL BE HANDLED BY LEHMAN BROTHERS AND MERRILL LYNCH & CO YESTERDAY'S SEC FILINGS COLUMN INCORRECTLY SAID LEHMAN BROTHERS AND PAINEWEBBER WOULD HANDLE BOTH OFFERINGS 9304120096 930412 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS BOTH INITIAL PUBLIC OFFERINGS WHILE THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 13 NEW LISTINGS INCLUDING NINE INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING THE BIG BOARD SAID IT BEGAN TRADING GENERAL GROWTH PROPERTIES INC DES MOINES IOWA A REALESTATE INVESTMENT TRUST UNDER GGP AND STARTER CORP NEW HAVEN CONN A DESIGNER AND MARKETER OF OUTERWEAR ACTIVEWEAR AND HEADWEAR UNDER STA THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET HAMILTON BANCORP INC BROOKLYN NY A COMPANY CREATED TO ACQUIRE ALL OF THE CAPITAL STOCK OF HAMILTON FEDERAL SAVINGS UPON ITS CONVERSION FROM MUTUAL TO STOCK FORM UNDER HFSB INCO HOMES CORP UPLAND CALIF A BUILDER OF SINGLEFAMILY DETACHED HOMES UNDER INHM CASINO DATA SYSTEMS LAS VEGAS A DEVELOPER OF CASINO ACCOUNTING AND PLAYER TRACKING INFORMATION SYSTEMS FOR THE CASINO INDUSTRY UNDER CSDS SUNRISE BANCORP INC FARMINGDALE NY A COMPANY CREATED TO ACQUIRE ALL OF THE CAPITAL STOCK OF SUNRISE FEDERAL SAVINGS BANK UPON ITS CONVERSION FROM MUTUAL TO STOCK FORM UNDER SUNY FIRST SHENANGO BANCORP INC NEW CASTLE PA A COMPANY CREATED TO ACQUIRE ALL OF THE CAPITAL STOCK OF FIRST FEDERAL SAVINGS & LOAN ASSOCIATION UPON ITS CONVERSION FROM MUTUAL TO STOCK FORM UNDER SHEN BHC FINANCIAL INC PHILADELPHIA A PROVIDER OF SERVICES TO SECURITIES BROKERAGE AFFILIATES OF BANKS AND OTHER FINANCIAL INSTITUTIONS UNDER BHCF FOSSIL INC DALLAS A FASHION WATCH A THE FOLLOWING COMPANIES PREVIOUSLY TRADED ON THE NASDAQ SMALLCAP MARKET AND WERE APPROVED FOR DESIGNATION ON THE NATIONAL MARKET SYSTEM WCT COMMUNICATIONS INC SANTA BARBARA CALIF A MULTIREGIONAL LONGDISTANCE TELECOMMUNICATIONS COMPANY UNDER WCTI COMMERCE BANK VIRGINIA BEACH VA A COMMERCIAL BANK UNDER CBVA KINDERCARE LEARNING CENTERS INC MONTGOMERY ALA AN OPERATOR OF DAY CARE CENTERS UNDER KCLCV AND KCLVW MASONDIXON BANCSHARES INC WESTMINSTER MD A BANK HOLDING COMPANY MOVED FROM THE PINK SHEETS TO THE NATIONAL MARKET SYSTEM AND WILL TRADE UNDER MSDX THE AMERICAN STOCK EXCHANGE SAID IT BEGAN TRADING ON WASHINGTON SAVINGS BANK WALDORF MD A STOCK SAVINGS BANK UNDER WSB WASHINGTON SAVINGS PREVIOUSLY TRADED OVERTHECOUNTER ON THE NASDAQ SYSTEM THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON THE FOLLOWING ISSUES AZTAR CORP PHOENIX A CASINO HOTEL OPERATOR RUSS BERRIE & CO OAKLAND NJ A DESIGNER AND MARKETER OF A LINE OF GIFT ITEMS AND WESTERN CO OF NORTH AMERICA HOUSTON AN OIL AND GAS CONCERN THE PACIFIC STOCK EXCHANGE AND THE AMERICAN STOCK EXCHANGE ALSO BEGAN TRADING OPTIONS ON WESTERN CO OF NORTH AMERICA 9304120095 930412 INTERNATIONAL KUWAIT NAMES HEAD OF INVESTMENT ARM TO CENTRALIZE CONTROL SPECIAL TO THE WALL STREET JOURNAL KUWAIT ALI RASHID ALBADR THE HEAD OF THE LONDON OFFICE OF THE KUWAIT INVESTMENT OFFICE HAS BEEN NAMED MANAGING DIRECTOR OF THE PARENT KUWAIT INVESTMENT AUTHORITY THE EMIRATE'S FINANCE MINISTER SAID ACCORDING TO A REPORT THE STEP APPARENTLY IS AIMED AT CENTRALIZING DECISIONMAKING IN KUWAIT FOLLOWING MANAGEMENT PROBLEMS AND SCANDALS THAT HAVE SHARPLY ERODED THE OILRICH NATION'S INVESTMENT PORTFOLIO FINANCE MINISTER NASSER ALROWDHAN TOLD THE ALWATAN DAILY THAT THE DECISION WAS MADE AT A MEETING OF THE KIA BOARD EARLIER THIS WEEK HE SAID MR BADR'S NEW POSTING IS FOR FOUR YEARS MR BADR WILL RETAIN RESPONSIBILITY FOR KIO'S LONDON OFFICE A MOVE WHICH IS EXPECTED TO CURTAIL THE OFFICE'S INDEPENDENCE THIS STEP IS PART OF A STRATEGY TO RESTRUCTURE THE KIA IN ORDER TO STRENGTHEN ITS CONTROL OVER KUWAITI INVESTMENTS MR ROWDHAN TOLD THE PAPER THE LONDON OFFICE WAS THE INTERNATIONAL INVESTMENT ARM OF THE GULF STATE IN THEORY OPERATING FOR KIA IN REALITY HOWEVER IT OPERATED QUITE INDEPENDENTLY IT HAS BEEN BLAMED FOR MISHANDLING A SPANISH INVESTMENT WHICH COULD RESULT IN A 4 BILLION LOSS TO KUWAIT THE TOTAL VALUE OF KUWAIT'S FOREIGN INVESTMENTS FELL FROM AN ESTIMATED 100 BILLION IN THE 1980S TO LESS THAN 30 BILLION BECAUSE OF MISMANAGEMENT AND COSTS STEMMING FROM IRAQ'S 1990 INVASION OF KUWAIT AND THE SUBSEQUENT GULF WAR 9304120094 930412 THE OUTLOOK AND NOW GOOD NEWS ON THE ECONOMY BY ALAN MURRAY WASHINGTON THE HANDWRINGING OVER THE JOBLESS RECOVERY AND THE STEADY STREAM OF HEADLINES ABOUT BLUECHIP LAYOFFS HAVE LEFT THE IMPRESSION THAT THE LAST YEAR HAS BEEN A DISMAL ONE FOR THE AMERICAN ECONOMY BUT IN FACT IT MAY CARRY THE SEEDS OF HOPE FOR THE NEXT GENERATION THE FLIP SIDE OF A JOBLESS RECOVERY AFTER ALL IS A SURGE IN PRODUCTIVITY WHEN THE ECONOMY EXPANDS WITHOUT CREATING JOBS BY DEFINITION THE OUTPUT PER WORKERPRODUCTIVITYSWELLS THAT'S EXACTLY WHAT HAPPENED IN 1992 PRODUCTIVITY ROSE 29 FASTER THAN IN ANY YEAR SINCE 1976 AND NEARLY TRIPLE THE DISMAL 1 AVERAGE OF THE PAST 2 1/2 DECADES PRODUCTIVITY IS IMPORTANT BECAUSE OVER THE LONG HAUL IT DETERMINES GROWTH IN WAGES AND IN LIVING STANDARDS BETWEEN 1950 AND 1972 AVERAGE ANNUAL PRODUCTIVITY GROWTH OF 23 FILLED EVERY AMERICAN KITCHEN WITH APPLIANCES PUT TWO CARS IN EVERY SUBURBAN GARAGE AND GAVE EACH GENERATION THE CONFIDENCE THAT IT WOULD LIVE BETTER THAN THE LAST THE SLOW GROWTH IN PRODUCTIVITY SINCE 1972 IS THE MAIN REASON SO MANY AMERICANS FEEL CAUGHT ON A DOWN ESCALATOR DO LAST YEAR'S NUMBERS SUGGEST WE'VE RETURNED TO THE GOLDEN AGE OF THE '50S AND '60S PROBABLY NOT ROBERT GORDON A NORTHWESTERN UNIVERSITY ECONOMIST WHO STUDIED THE MATTER SAYS MOST OF THE RISE CAN BE EXPLAINED AS A TEMPORARY RESPONSE TO THE RECESSION MANY COMPANIES FAILED TO GET RID OF REDUNDANT WORKERS WHEN THE ECONOMY SLOWED BETWEEN 1987 AND 1991 HE SAYS CAUSING PRODUCTIVITY GROWTH TO STAGNATE THEN THEY BELATEDLY SHED UNNEEDED WORKERS LAST YEAR CAUSING PRODUCTIVITY TO SPIKE IF THOSE YEARS ARE AVERAGED TOGETHER PRODUCTIVITY GROWTH IS ONLY MODESTLY ABOVE THE POST1972 AVERAGE IT'S TOO SOON TO ASSUME ANYTHING MR GORDON WARNS BUT HE AND OTHERS DON'T RULE OUT THE POSSIBILITY OF SOME PICKUP IN THE LONGRUN TREND THE EVIDENCE SUGGESTS A BETTER IMPROVEMENT IN PRODUCTIVITY THAN THE RECOVERY ALONE WOULD PREDICT SAYS GEORGE PERRY OF THE BROOKINGS INSTITUTION AND A WEALTH OF ANECDOTAL EVIDENCE SUGGESTS THAT MANY LARGE US COMPANIES ARE STRUGGLING TO REORGANIZE THEMSELVES IN A WAY THAT BOOSTS PRODUCTIVITY AND CUTS COSTS MR PERRY SPECULATES A POSSIBLE REASON FOR THE PRODUCTIVITY GAINS IS THAT COMPANIES ARE FINALLY LEARNING TO MAKE GOOD USE OF THE BILLIONS OF DOLLARS WORTH OF COMPUTER EQUIPMENT THEY PURCHASED OVER THE PAST DECADE A GREAT ECONOMIC MYSTERY OF THE 1980S WAS THE FACT THAT THIS QUANTUM LEAP IN TECHNOLOGY DIDN'T DO MUCH TO LIFT PRODUCTIVITY THE ANSWER TO THAT MYSTERY MAY SIMPLY BE THAT IT TOOK AMERICANS TIME TO FIGURE OUT HOW TO USE THEIR COMPUTERS IN A WAY THAT MADE THEM MORE RATHER THAN LESS EFFICIENT AMONG THE OPTIMISTS ON THE PRODUCTIVITY QUESTION ARE SOME USUALLY PESSIMISTIC FEDERAL RESERVE OFFICIALS FED CHAIRMAN ALAN GREENSPAN HAS ARGUED PUBLICLY THAT IT'S NO ACCIDENT PRODUCTIVITY SLUMPED IN THE EARLY 1970S WHEN INFLATION EMERGED AND HE SUGGESTS IT SHOULD BE NO SURPRISE IF PRODUCTIVITY GROWTH TAKES OFF NOW THAT THE NATION IS AS HE PUTS IT QUITE CLOSE TO PRICE STABILITY WHEN INFLATION IS LOW THE FED CHAIRMAN SAID IN TESTIMONY EARLIER THIS YEAR ENDEAVORS TO BOOST PROFIT MARGINS NECESSARILY INVOLVE REDUCTIONS IN COST RATHER THAN INCREASING PRICES THUS LOW RATES OF INFLATION TEND TO BE ASSOCIATED WITH RELATIVELY HIGH PRODUCTIVITY GROWTH CLINTONADMINISTRATION ECONOMISTS FOCUSED ON THE NEED TO BRING DOWN UNEMPLOYMENT ARE SOMEWHAT LESS OPTIMISTIC LAURA D'ANDREA TYSON WHO HEADS THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAYS THAT DURING RECOVERIES THERE IS USUALLY A PRODUCTIVITY IMPROVEMENT AS FIRMS TRY TO PRODUCE WITH THE EXISTING LABOR FORCE BEFORE THEY INCREASE EMPLOYMENT BUT SHE SAYS I DON'T THINK THE NUMBERS SUPPORT THE NOTION THAT THERE HAS BEEN ANY UNUSUAL IMPROVEMENT IN LONGTERM PRODUCTIVITY GROWTH AND SECRETARY OF LABOR ROBERT REICH WORRIES THAT EVEN IF PRODUCTIVITY IS ON THE RISE MANY AMERICAN WORKERS MAY BE LEFT BEHIND BECAUSE THEY LACK THE EDUCATION OR THE SKILLS TO FILL NEW AND MORE PRODUCTIVE JOBS WITH THIS INCREASE IN PRODUCTIVITY WE HAVE NOT SEEN AN INCREASE IN JOBS AND EVEN AMONG THOSE WITH JOBS WE HAVEN'T SEEN AN INCREASE IN REAL WAGES HE SAYS STILL SOME ADMINISTRATION ECONOMISTS ACKNOWLEDGE THAT SOMETHING GOOD MAY BE IN THE WORKS THE UNDERLYING LOGIC OF PRESIDENT CLINTON'S ECONOMIC PROGRAM IS TO RAISE LONGRUN PRODUCTIVITY BY INCREASING INVESTMENT IN EDUCATION TRAINING TECHNOLOGY AND INFRASTRUCTURE AND BY REDUCING THE BUDGET DEFICIT TO FREE UP MORE FUNDS FOR INVESTMENT ECONOMISTS SAY IT WILL TAKE YEARS TO REAP THE BENEFITS OF SUCH MEASURES EVEN IF THEY ARE SUCCESSFULLY IMPLEMENTED MR CLINTON COULD BENEFIT FROM FORTUNATE TIMING HE AND HIS AIDES ARE RIGHT TO WORRY ABOUT THE JOBLESS RECOVERY AND THE MANY AMERICANS SUFFERING AS A RESULT BUT NOW EMPLOYMENT IS EXPANDING AND IF PRODUCTIVITY CONTINUES TO EXPAND AS WELL HIS ADMINISTRATION AND THE COUNTRY COULD ENJOY THE MANY BENEFITS OF IMPROVED PRODUCTIVITY MUCH SOONER THAN HE ANTICIPATED 9304120093 930412 MARKETING & MEDIA SUMMER AIR TRAVEL BARGAINS LIKELY BUT SUPER DEALS AREN'T ON THE HORIZON BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON AIRLINE PASSENGERS WENT ON A FLYING FRENZY LAST SUMMER AFTER FARES WERE CUT IN HALF AND MANY TRAVELERS ARE NOW HOPING THAT HISTORY REPEATS ITSELF BUT THE DEAL OF A LIFETIME IS NOT LIKELY TO OCCUR TWICE IN 12 MONTHS ALTHOUGH SOME VACATION DISCOUNTS WILL PROBABLY BE OFFERED A TYPICAL MOVE WHEN SUMMER BUSINESS TRAFFIC SLUMPS THEY WON'T BE AS GENEROUS OR WIDESPREAD AS THE ACROSSTHEBOARD CUTS LAST YEAR TRAVEL OFFICIALS SAY THUS DISAPPOINTMENT AWAITS TRAVELERS WHO DEFER SUMMER TICKET PURCHASES HOPING FOR SUPER BARGAINS THEY'RE WAITING FOR THE DEAL SAYS STEVE GLENN PRESIDENT OF EXECUTIVE TRAVEL INC A TRAVEL AGENCY IN LINCOLN NEB WE WERE BUSY THROUGH THE THIRD WEEK OF MARCH BUT SINCE THEN THE VOLUME OF CALLS HAS DROPPED 25 ADVANCE TICKETS FOR ROUNDTRIP FLIGHTS FROM NEW YORK TO LOS ANGELES NOW COST ABOUT 400 INDUSTRY OBSERVERS PREDICT THE SUMMER FARE FOR ROUNDTRIP TRAVEL BETWEEN THOSE TWO CITIES WILL BE ABOUT 300 WHICH IS GOOD BUT NOT LIKE LAST SUMMER'S 200 BONANZA THOSE TYPE OF DISCOUNTS WILL NOT LIKELY APPEAR BECAUSE THE AIRLINES CAN'T AFFORD ANY MORE EXPERIMENTS IN SELFIMMOLATION AMR CORP'S AMERICAN AIRLINES SET OFF LAST SUMMER'S PRICE WAR TRYING TO PRESERVE ITS SIMPLIFIED FARE STRUCTURE AND THE RESULT WAS MASSIVE LOSSES FOR THE INDUSTRY YOU'LL SEE AN ATTEMPT BY THE INDUSTRY TO SHY AWAY FROM UNPROFITABLE PRICING PRACTICES SAYS A SPOKESMAN FOR NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC THE INDUSTRY CAN'T AFFORD IT IN ADDITION AN IMPROVED ECONOMY HAS DIMINISHED AIRLINES' RELIANCE ON DISCOUNTS TO FILL THEIR PLANES DESPITE A SERIES OF FARE INCREASES AT THE END OF LAST YEAR DOMESTIC AIR TRAVEL INCREASED SLIGHTLY IN EACH OF THE FIRST THREE MONTHS OF 1993 DISCOUNTS WILL ALSO BE LESS NECESSARY BECAUSE THE INDUSTRY WILL HAVE FEWER SEATS TO FILL AS CAPACITY CUTBACKS BEGIN TO TAKE EFFECT BY THE SUMMER JUST LAST WEEK AMERICAN SAID IT WAS REDUCING CAPACITY AT ITS HUB IN SAN JOSE CALIF BY 40 ON THE FIRST DAY OF SUMMER THIS YEAR THERE WILL BE 3 TO 10 LESS CAPACITY THAN THERE WAS ON THE FIRST DAY OF SUMMER LAST YEAR SAYS JOE BRANCATELLI EDITOR OF FREQUENT FLYER A TRAVEL MAGAZINE MOST TRAVEL AGENTS ADVISE CUSTOMERS TO BUY THEIR SUMMER TICKETS NOW AND LOCK IN THEIR SEATS IF THEIR FLIGHT DOES GO ON SALE THE AGENT CAN REISSUE THE TICKET MINUS A 25 CHARGE THAT GOES TO THE AIRLINES THE SUMMER DISCOUNTS THAT DO APPEAR WILL PROBABLY COME WITH NUMEROUS RESTRICTIONS SUCH AS PREVENTING TRAVEL ON CERTAIN DATES AND BE DESIGNED FOR MARKETS WHERE TRAVEL FALLS OFF IN THE SUMMER USAIR A UNIT OF USAIR GROUP INC RECENTLY ANNOUNCED A DISCOUNT OF UP TO 30 ON SUMMER FLIGHTS TO AND FROM FLORIDA THE AIRLINE OFFERED A SIMILAR SALE LAST YEAR AIRLINES WILL TRY TO DISCOUNT IN A MUCH MORE CONTROLLED WAY SAYS ROSS MERSINGER VICE PRESIDENT OF OPERATIONS OF CARLSON TRAVEL NETWORK A TRAVEL AGENCY HE PREDICTS FARE SALES WILL BE AVAILABLE AT POPULAR LEISURE AND BUSINESS DESTINATIONS SUCH AS LOS ANGELES 9304120092 930412 ENTERPRISE TALKING STRATEGY BUSINESSES NEEDN'T FEEL STING OF IRS EMPLOYMENT AUDIT GAME OF 20 QUESTIONS CAN HELP FIRMS PRESERVE CONTRACTORS' STATUS BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL WORRIED ABOUT THE EMPLOYMENT STATUS OF THE PEOPLE WHO DO WORK FOR YOU CONSIDER PLAYING TWENTY QUESTIONS TAX LAWYERS SAY A METHODICAL APPROACH PERHAPS INCLUDING AN EXERCISE BASED ON THE INTERNAL REVENUE SERVICE'S OWN 20POINT GUIDELINES CAN HELP SMALLBUSINESS OWNERS MAKE SURE THE GOVERNMENT DOESN'T TURN THEIR INDEPENDENT CONTRACTORS INTO EMPLOYEES AS ENTREPRENEURS SEE IT THAT FATE IS ABOUT AS APPEALING AS AN IRS AUDIT AND THE RISK IS RISING THE IRS IS TURNING UP THE HEAT ON SMALL COMPANIES THAT IT THINKS MAY BE CALLING SOME OR ALL OF THEIR WORKERS INDEPENDENT CONTRACTORS IN ORDER TO AVOID WITHHOLDING AND EMPLOYMENT TAXES IN RECENT MONTHS THE ISSUE HAS ATTRACTED MUCH ATTENTION AS IT APPLIES TO HOUSEHOLD WORKERS BUT IT CAN BE FAR MORE COMPLICATED FOR COMPANIES USING CONTRACTORS CAN BE A BIG SAVING FOR SMALL EMPLOYERS FEDERAL AND STATE GOVERNMENTS REQUIRE EMPLOYERS TO WITHHOLD OR PAY INCOME AND OTHER TAXES AND TO MAKE SOCIAL SECURITY AND WORKERS' COMPENSATION INSURANCE CONTRIBUTIONS FOR EACH FULLFLEDGED EMPLOYEE NONE OF THESE REQUIREMENTS APPLIES TO OUTSIDE WORKERS BUT IF THE IRS DECIDES THAT SOME OR ALL OF THE PEOPLE A COMPANY HAS BEEN TREATING AS INDEPENDENT CONTRACTORS ARE ACTUALLY EMPLOYEES THE COMPANY IS LIABLE FOR BACK TAXES INTEREST AND ONEROUS PENALTIES THE COMPANY MAY EVEN RISK HAVING ITS PENSION PLAN DISQUALIFIED LEAVING LEGITIMATE EMPLOYEES WITHOUT A TAXSHELTERED RETIREMENT PLAN AND WITH A WINDFALL OF TAXABLE INCOME THE CONSEQUENCES OF THAT ARE ABSOLUTELY AWFUL SAYS GREGOR CHVISUK A FRAMINGHAM MASS TAX LAWYER IN THE FISCAL YEAR ENDED SEPT 30 THE IRS RECLASSIFIED 90000 INDEPENDENT CONTRACTORS AS EMPLOYEES UP FROM 76000 THREE YEARS EARLIER IT ASSESSED EMPLOYERS 131 MILLION IN PROPOSED PENALTIES THAT YEAR UP FROM 94 MILLION THREE YEARS EARLIER MR CHVISUK SUGGESTS A TWOPART STRATEGY FOR EMPLOYERS WORRIED ABOUT THE ISSUE FIRST HAVE CONTRACTORS SIGN AN AGREEMENT THAT SPECIFIES WHAT THEY MAY AND MAY NOT DO ON THE JOB MR CHVISUK MARKETS SAMPLE AGREEMENTS HE HAS DRAFTED AN EMPLOYER'S SECOND LINE OF DEFENSE IS TO RATE ITSELF ON EACH OF THE 20 COMMON LAW QUESTIONS THAT THE IRS USES AS A TEMPLATE IN JUDGING EMPLOYMENT STATUS CASES THE QUESTIONS COVER SUCH AREAS AS THE AMOUNT OF INDEPENDENCE A WORKER HAS IN COMPLETING A TASK WHETHER THE EMPLOYER FURNISHES TOOLS AND MATERIALS AND THE EMPLOYER'S ABILITY TO FIRE THE WORKER THE ANSWERS ARE DESIGNED TO INDICATE HOW MUCH CONTROL A COMPANY EXERTS OVER ITS WORKERS CONTROL IS THE KEY TO EMPLOYMENT STATUS IN THE EYES OF THE IRS THAT'S A BIG REASON THAT NANNIES WHO RECEIVED MUCH PUBLICITY DURING THE SHORTLIVED NOMINATION OF ZOE BAIRD FOR US ATTORNEY GENERAL AREN'T CONSIDERED INDEPENDENT CONTRACTORS A PARENT'S INSTRUCTIONS ON HOW TO CARE FOR A CHILD ARE ENOUGH TO CLASSIFY A NANNY AS AN EMPLOYEE IN A SMALL GUIDEBOOK HE HAS PUBLISHED MR CHVISUK WALKS SMALL BUSINESS OWNERS THROUGH THE 20 QUESTIONS USING AS AN EXAMPLE A MEDICAL LABORATORY THAT TESTS BLOOD SAMPLES FOR DOCTORS AND HOSPITALS THE LAB HIRES THREE TECHNICIANS WHO EXAMINE THE BLOOD SAMPLES IN THEIR OWN HOMES USING THEIR OWN MICROSCOPES HERE'S HOW THE FICTIONAL MEDICAL LAB MIGHT SCORE ON FOUR OF THE 20 QUESTIONS HOW FIRM ARE INSTRUCTIONS TO WORKERS THE LAB SAYS IT DOESN'T TELL THE TECHNICIANS WHAT HOURS TO WORK OR IN WHAT SEQUENCE TO EXAMINE THE BLOOD SAMPLES THE ONLY ORDER IS THAT THE TESTS BE ACCURATE AND THAT THE SAMPLES HANDED OUT EACH MONDAY BE COMPLETED EACH FRIDAY THE LAB WINS ON THIS FACTOR HOW MUCH TRAINING IS REQUIRED ARGUING THAT ITS TESTERS ARE COMPETENT PROFESSIONALS THE LAB DOESN'T INSTRUCT ITS WORKERS OR MAIL THEM MEDICAL UPDATES ON TESTING TECHNIQUES IT EVEN LIMITS QUALITY CONTROL TESTING ONLY A TINY SHARE OF SLIDES FOR ACCURACY THE LAB WINS IS THERE A CONTINUING RELATIONSHIP BETWEEN THE COMPANY AND THE WORKERS THE TESTERS DO OCCASIONAL ASSIGNMENTS FOR OTHER COMPANIES BUT THE IRS DISCOVERS A PATTERN OF STEADY WORK BY THE THREE TESTERS FOR THE LAB THE LAB LOSES ON THIS FACTOR CAN THE EMPLOYER FIRE THE WORKER THE LAB'S AGREEMENT WITH ITS TESTERS SAYS THEY CAN BE FIRED ONLY FOR FRAUD LOSS OF PROFESSIONAL LICENSE OR OTHER GROSS MISBEHAVIOR THOUGH THE AGREEMENT IS OPENENDED WITHOUT A TERMINATION DATE THE LAB LOSES AN EMPLOYER DOESN'T HAVE TO WIN ON ALL 20 POINTS TO PREVAIL ON THE EMPLOYMENT ISSUE IN AN IRS AUDIT MR CHVISUK SAYS SOMETIMES A QUESTION DOESN'T APPLY TO A PARTICULAR COMPANY IF YOU CAN FOCUS ON A KEY HALFDOZEN AND REALLY PUSH THEM YOU'VE GOT A CHANCE HE ADDS HE ALSO SUGGESTS THAT COMPANIES THAT USE INDEPENDENT CONTRACTORS STUDY THE QUESTIONS WITH AN EYE TO DESIGNING AN ENVIRONMENT THAT MEETS IRS STANDARDS A GARAGE THAT HIRES OUTSIDE MECHANICS FOR EXAMPLE SHOULD CONSIDER LEASING EACH MECHANIC PART OF THE GARAGE SPACE AND USE OF A HYDRAULIC LIFT FOR A MONTHLY FEE REBECCA AUSTILLCLAUSEN OWNER OF AUSTILL'S REHABILITATION SERVICES INC EXTON PA SHOWED IRS EXAMINERS BUSINESS CARDS AND ADVERTISEMENTS FROM MANY OF THE PHYSICAL THERAPISTS SHE EMPLOYS TO MAKE THE CASE THAT THEY WERE INDEPENDENT CONTRACTORS WHO MAKE THEIR SERVICES AVAILABLE TO THE PUBLIC MS AUSTILLCLAUSEN SAYS WORRIES ABOUT HUGE BACK PAYMENTS AND PENALTIES THAT THE IRS WOULD DEMAND IF THEY RULED HER PHYSICAL THERAPISTS WERE EMPLOYEES FORCED HER TO STOP THE COMPANY'S GROWTH PLANS COLD AND LIVE ON A DAYTODAY SCHEDULE LAST APRIL THE IRS CONCEDED THAT MS AUSTILLCLAUSEN'S WORKERS WERE INDEPENDENT CONTRACTORS WITH HER LAWYER SHE NOW CONDUCTS SEMINARS FOR EMPLOYERS ON HOW TO PREVAIL IF THE IRS KNOCKS ON THE DOOR THE GOOD NEWS FOR MS AUSTILLCLAUSEN IF THE LAW DOESN'T CHANGE SHE CAN'T BE CHALLENGED AGAIN ON THE EMPLOYMENT ISSUE THE BAD NEWS THE AUDIT WAS EIGHT MONTHS OF HELL SHE SAYS 9304120091 930412 BANQUE BELGOLAISE SAYS NET FELL 15 IN 1992 BRUSSELS BELGIANOWNED BANQUE BELGOLAISE 1992 NET INCOME FELL 15 TO 378 MILLION BELGIAN FRANCS 114 MILLION AS POLITICAL UNREST IN ZAIRE AND AUSTERITY PROGRAMS IN OTHER AFRICAN NATIONS CUT INTO EARNINGS BELGOLAISE SAID THAT MARGIN ON INTEREST INCOME SWUNG TO NEGATIVE 55 MILLION FRANCS FROM POSITIVE 506 MILLION FRANCS A YEAR EARLIER HOWEVER INCOME FROM SHARES AND PORTFOLIO HOLDINGS ROSE TO 1854 BILLION FRANCS IN 1992 FROM 1532 BILLION FRANCS A YEAR EARLIER PARTLY OFFSETTING THE DECLINE BELGOLAISE IS 54OWNED BY GENERALE DE BANQUE THE BANKING ARM OF HOLDING COMPANY SOCIETE GENERALE DE BELGIQUE SGB IT HAS BANKING ACTIVITIES AND INVESTMENTS IN FORMER BELGIAN COLONIES ZAIRE RWANDA AND BURUNDI IT HAS ALSO INVESTED IN RECENT YEARS IN IVORY COAST AND NIGERIA BELGOLAISE'S BALANCE SHEET TOTAL ROSE 11 TO 6371 BILLION FRANCS AT YEAREND 1992 FROM 5742 BILLION FRANCS A YEAR EARLIER 9304120090 930412 WHO'S NEWS SPELLING ENTERTAINMENT PICKS NEW CHAIRMAN CEO FOR BLOCKBUSTER LOS ANGELES SPELLING ENTERTAINMENT GROUP INC NAMED H WAYNE HUIZENGA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BLOCKBUSTER ENTERTAINMENT CORP FOLLOWING BLOCKBUSTER'S RECENT PURCHASE OF A CONTROLLING INTEREST IN SPELLING HE SUCCEEDS INVESTOR CARL H LINDNER WHOSE CLOSELYHELD AMERICAN FINANCIAL CORP HAD HELD A 482 STAKE IN SPELLING THAT BLOCKBUSTER ACQUIRED LAST MONTH IN A 140 MILLION STOCK SWAP COMBINED WITH SPELLING SHARES PREVIOUSLY ACQUIRED BY BLOCKBUSTER THE FORT LAUDERDALE FLA VIDEO STORE CHAIN NOW HOLDS A 538 STAKE IN SPELLING A PRODUCER AND DISTRIBUTOR OF FILMS AND TELEVISION PROGRAMS INCLUDING THE CURRENT FOX SHOWS BEVERLY HILLS 90210 AND MELROSE PLACE TELEVISION PRODUCER AARON SPELLING THE COMPANY'S FOUNDER WAS NAMED VICE CHAIRMAN AND A MEMBER OF THE BOARD'S EXECUTIVE COMMITTEE STEVEN R BERRARD BLOCKBUSTER'S VICE CHAIRMAN PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED PRESIDENT CHIEF EXECUTIVE AND A DIRECTOR OF SPELLING SUCCEEDING MR LINDNER'S SON S CRAIG LINDNER WHO REMAINS A BOARD MEMBER SPELLING ENTERTAINMENT GROUP INC NAMED BLOCKBUSTER ENTERTAINMENT CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER H WAYNE HUIZENGA AS CHAIRMAN OF SPELLING AN ARTICLE MONDAY INCORRECTLY SAID THAT SPELLING HAD NAMED MR HUIZENGA AS CHAIRMAN AND CEO OF BLOCKBUSTER 9304120089 930412 JUSCO CO POSTS 42 DROP IN PRETAX PROFIT SPECIAL TO THE WALL STREET JOURNAL TOKYO JUSCO CO A MAJOR JAPANESE SUPERMARKET OPERATOR POSTED A 42 DROP IN GROUP PRETAX PROFIT FOR THE YEAR ENDED FEB 20 AS OPERATING COSTS ROSE PRETAX PROFIT FELL TO 3743 BILLION 3296 MILLION YEN FROM 3907 BILLION YEN A YEAR EARLIER NET PROFIT FELL 40 TO 829 BILLION YEN FROM 1385 BILLION YEN SALES ROSE 5 TO 1609 TRILLION YEN FROM 1532 TRILLION YEN UNCONSOLIDATED PRETAX PROFIT OR THAT OF THE PARENT ALONE DROPPED 69 TO 2753 BILLION YEN JUSCO SAID EARNINGS WERE PRESSURED BY WEAK ECONOMIC CONDITIONS THAT KEPT PERSONAL CONSUMPTION SLUGGISH CHAIN STORE SALES IN THE YEAR ROSE ONLY 05 WHILE NATIONWIDE DEPARTMENT STORES FELL BELOW YEAREARLIER LEVELS FOR THE CURRENT FISCAL YEAR JUSCO SAID IT IS CONCERNED ABOUT THE CONTINUED WEAKNESS OF CORPORATE EARNINGS AND SENTIMENT ALONG WITH THE POTENTIAL FOR PERSONAL CONSUMPTION TO FURTHER COOL AS LABOR AND INCOME CONDITIONS FAIL TO TURN AROUND PRETAX PROFIT WAS HURT NOT ONLY BY WEAKER SALES AT THE PARENT LEVEL BUT ALSO BY RISING GENERAL AND ADMINISTRATIVE COSTS 9304120088 930412 MOODY'S CUTS GPA GROUP'S DEBT RATING CITING UNCERTAINTY OVER RESTRUCTURING BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED THE DEBT RATINGS OF GPA GROUP PLC CITING THE UNCERTAIN OUTCOME OF THE AIRCRAFT LEASING CONCERN'S FINANCIAL RESTRUCTURING THE MOVE COMES AFTER A SHARP DECLINE IN GPA'S BONDS IN RECENT WEEKS ON FEARS THE SHANNON IRELAND COMPANY WILL NOT BE ABLE TO COMPLETE A PLAN TO SHORE UP ITS FINANCES THE BONDS ALSO FELL AFTER TH COMPANY CANCELED A TENTATIVE TELECONFERENCE CALL WITH BONDHOLDERS WHICH WOULD HAVE BEEN THE FIRST MEETING BETWEEN UNSECURED CREDITORS AND THE COMPANY A GPA SPOKESMAN SAID THERE WAS NEVER ANY DEFINITE PLAN FOR A TELECONFERENCE CALL WITH FINANCING DRYING UP LAST YEAR GPA BEGAN A TRANSATLANTIC REORGANIZATION TO FIX ITS DEBTHEAVY BALANCE SHEET THE PIECES OF THE PLAN WHICH ARE ALL CONTINGENT UPON ONE ANOTHER INCLUDE CANCELLATION OF AIRCRAFT ORDERS THE DEFERRAL OF 1 BILLION IN LOAN PAYMENTS AND 200 MILLION IN EQUITY FROM ITS OWNERS THE COMPANY HAS HAMMERED OUT ACCORDS TO REDUCE AIRCRAFT ORDERS BUT HAS BEEN UNABLE TO COMPLETE THE OTHER TWO LEGS OF THE PLAN MOODY'S LOWERED THE COMPANY'S UNSECURED BONDS TO CAA FROM SINGLEB1 FOLLOWING A RECENT MOVE BY STANDARD & POOR'S CORP THE COMPANY'S BONDS BACKED BY AICRAFT LEASES WERE LOWERED TO SINGLEB3 FROM BA3 WITHOUT THE NEW EQUITY THE ONGOING EFFORTS TO RESTRUCTURE GPA'S FINANCIAL CONDITION COULD BE JEOPARDIZED MOODY'S SAID ON FRIDAY THE GPA SPOKESMAN SAID OVER THE WEEKEND THAT THE COMPANY CONTINUES TO WORK ON RAISING THE FUNDS BANKS HAVE NOT SIGNED OFF ON THE BANK RESTRUCTURING BECAUSE A HANDFUL OF LENDERS DO NOT WANT TO MAKE CONCESSIONS UNTIL THEY KNOW THE EQUITY IS RAISED EVEN THOUGH THE AGREEMENT IS CONDITIONED ON THE 200 MILLION IN NEW FUNDS THE SECURITIES PRICES HAVE FALLEN DESPITE GPA'S ASSERTIONS THAT BONDHOLDERS WILL NOT BE ASKED TO MAKE CONCESSIONS TO REDUCE THE COMPANY'S MAMMOTH 68 BILLION DEBT LOAD BUT WITHOUT AN AGREEMENT BY MAY ANALYSTS BELIEVE THAT THE COMPANY WILL HAVE TO BRING UNSECURED CREDITORS INTO THE RESTRUCTURING BECAUSE OF LARGE BOND PAYMENTS THAT BEGIN NEXT MONTH IT IS UNCLEAR WHETHER BANKS WOULD ALLOW THE COMPANY TO MAKE THOSE PAYMENTS WITHOUT AN AGREEMENT IN PLACE GPA'S MEDIUMTERM NOTES WHICH CARRY VARIOUS COUPONS AND MATURITIES ARE QUOTED BETWEEN A PRICE OF 390 PER 1000 FACE VALUE TO 420 PER 1000 DOWN FROM 500 A FEW WEEKS AGO THE SECURITIES IN BOND JARGON TRADE FLAT MEANING INVESTORS ASSUME THAT INTEREST WILL NOT BE PAID 9304120087 930412 BUSINESS BRIEFS VORNADO INC RESCHEDULED A SPECIAL MEETING OF ITS STOCKHOLDERS IN WHICH THEY WERE TO DISCUSS A MERGER OF THE COMPANY INTO VORNADO REALTY TRUST THE MEETING WILL NOW BE HELD MAY 3 OCOM CORP AGREED TO INVEST 25 MILLION IN A JOINT VENTURE WITH INSIGHT COMMUNICATIONS UK LP TO BUILD A CABLE AND TELEPHONE SYSTEM IN THE UNITED KINGDOM CONTINENTAL AIRLINES' MARCH TRAFFIC DROPPED 46 TO 352 BILLION REVENUE PASSENGER MILES LOAD FACTOR OR PERCENTAGE OF SEATS FILLED FELL TO 625 FROM 654 A YEAR EARLIER CONTINENTAL IS A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC CRYSTAL BRANDS INC RESTRUCTURED ITS THREE SEPARATE MARKETING AND SALES UNITS INTO A SINGLE CONSOLIDATED ORGANIZATION PAUL HARRIS STORES INC HAS BEEN APPROVED FOR LISTING ON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATION SYSTEM UNDER THE SYMBOL PAUH EVRO FINANCIAL CORP SIGNED AN AGREEMENT TO BUY A COMPUTERAIDED LASER SCANNING UNIT AND PROPRIETARY SOFTWARE FROM DYNAMED TECHNOLOGIES INC CRYSTAL BRANDS JEWELRY GROUP A DIVISION OF CRYSTAL BRANDS INC RESTRUCTURED ITS THREE SEPARATE MARKETING AND SALES DIVISIONS INTO A SINGLE ORGANIZATION IN YESTERDAY'S BUSINESS BRIEFS SECTION IT WAS INCORRECTLY REPORTED THAT CRYSTAL BRANDS INC WAS RESTRUCTURING ITS MARKETING AND SALES UNITS 9304120086 930412 UNIMARTS EXPECTS TO REPORT EARNINGS FOR ITS 2ND QUARTER STATE COLLEGE PA UNIMARTS INC'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER HENRY D SAHAKIAN ESTIMATES THAT THE COMPANY EARNED A FEW CENTS A SHARE IN THE FISCAL SECOND QUARTER ENDED APRIL 1 IN CONTRAST WITH A YEAREARLIER LOSS OF 2986 OR LESS THAN A PENNY A SHARE UNIMARTS OPERATES A CHAIN OF 446 CONVENIENCE STORES IN SIX EASTERN STATES WITH THE MAJORITY IN PENNSYLVANIA MOST SELL GASOLINE IN ADDITION TO GROCERIES SNACKS CIGARETTES HEALTH AND BEAUTY AIDS DELI ITEMS AND SELFSERVICE FAST FOOD FOR THE FISCAL YEAR ENDING SEPT 30 MR SAHAKIAN ESTIMATES THAT UNIMARTS' EARNINGS WILL TOP THE 16 MILLION OR 24 CENTS A SHARE POSTED FOR FISCAL 1992 AS WELL AS THE 25 MILLION OR 36 CENTS A SHARE EARNED IN FISCAL 1991 THE COMPANY EXPECTS TO REPORT SECONDQUARTER RESULTS THE WEEK OF APRIL 19 DUE TO WINTER WEATHER THE SECOND QUARTER IS TRADITIONALLY THE COMPANY'S LEAST PROFITABLE QUARTER THAT SEASONAL WEAKNESS IS OFFSET BY THE COMPANY'S PETROLEUM DIVISION WHICH SELLS HOME HEATING OIL TO ABOUT 2000 CUSTOMERS MR SAHAKIAN CREDITED UNIMARTS' IMPROVING PERFORMANCE TO THE ACQUISITION OF 140 CONVENIENCE STORES FROM GETTY PETROLEUM CORP IN DECEMBER 1991 ECONOMIES OF SCALE THAT THE COMPANY IS REALIZING AS THOSE STORES ARE INTEGRATED INTO EXISTING OPERATIONS AND THE CLOSING OF 37 UNDERPERFORMING STORES DURING FISCAL 1992 HE SAID THE COMPANY ALSO WILL BENEFIT THIS YEAR FROM DECLINING INTEREST EXPENSES AS A RESULT OF A RECENTLY COMPLETED DEBT RESTRUCTURING AND FROM THE COMPLETION LAST YEAR OF A FIVEYEAR 14 MILLION CAPITAL EXPENDITURE PROGRAM DESIGNED TO KEEP THE COMPANY'S PETROLEUM OPERATIONS IN COMPLIANCE WITH ENVIRONMENTAL PROTECTION AGENCY REQUIREMENTS UNDER THE DEBT RESTRUCTURING ANNOUNCED LAST MONTH UNIMARTS REFINANCED A PORTION OF ITS LONGTERM DEBT AT LOWER INTEREST RATES AND ESTABLISHED A NEW 125 MILLION REVOLVING LINE OF CREDIT WHICH CURRENTLY HAS A BALANCE OF 5 MILLION 9304120085 930412 MARKETING & MEDIA TELECOMMUNICATIONS TO UNVEIL PLAN TO REWIRE CABLE SYSTEMS FOR 2 BILLION BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE WAKE OF HARSH NEW FEDERAL RULES RESTRICTING CABLE TELEVISION RATES TELECOMMUNICATIONS INC WILL ANNOUNCE TODAY A 2 BILLION FOURYEAR PLAN TO REWIRE ITS CABLE SYSTEMS NATIONWIDE WITH HIGHCAPACITY OPTICAL FIBER THE PROGRAM PUTS THE NATION'S LARGEST CABLE COMPANY IN THE FOREFRONT OF THE RACE TO BUILD AN ELECTRONIC SUPERHIGHWAY CAPABLE OF DELIVERING HUNDREDS OF NEW TV CHANNELS AS WELL AS DATA AND PHONE SERVICES CABLEVISION SYSTEMS CORP AND TIME WARNER INC HAVE ANNOUNCED SIMILAR PLANS BUT THE TCI BLUEPRINT TO ROLL OUT 7000 MILES OF FIBER DWARFS THE PLANS OF ITS COMPETITORS SO FAR DENVERBASED TCI SAID IT WILL SPEND 750 MILLION TO WIRE 40 OF ITS 10 MILLION SUBSCRIBERS BY THE END OF THIS YEAR AND ANOTHER 125 BILLION TO WIRE A TOTAL OF 90 BY THE END OF 1996 ABOUT 300 COMMUNITIES IN ALL THE 1993 CABLE CAPITAL BUDGET MARKS A 66 JUMP OVER LAST YEAR'S FOR NOW REPLACING THE MAIN TRUNKS OF COAXIAL CABLE WITH FIBER OPTICS WILL MEAN CLEARER SIGNALS AND FEWER OUTAGES SINCE COPPER WIRES LOSE SIGNAL POWER EASIER AND REQUIRE EXPENSIVE AMPLIFIERS OPTICAL FIBER THIN STRANDS OF GLASS THAT CARRY LIGHT IMPULSES ESSENTIALLY OFFER A WIDER CLEANER HIGHWAY FOR INFORMATION OVER THE NEXT FEW YEARS CHANNEL CAPACITY ON THE FIBER OPTIC SYSTEMS WILL INCREASE EXPONENTIALLY WITH THE ARRIVAL OF DIGITAL COMPRESSION THE ABILITY TO SQUEEZE TEN CHANNELS INTO THE SPACE NORMALLY REQUIRED FOR ONE ALREADY TCI HAS ANNOUNCED IT WILL BUY ONE MILLION CONVERTERS CAPABLE OF RECEIVING DIGITALLY COMPRESSED SIGNALS THIS YEAR THE ACCELERATED PROGRAM IS INTENDED TO SEND A STRONG MESSAGE TO WALL STREET THE CLINTON ADMINISTRATION AND POTENTIAL TELEPHONE COMPANY COMPETITORS THAT DESPITE RECENT REREGULATION THE CABLE INDUSTRY IS POISED TO BUILD A NATIONAL INFOSTRUCTURE THE CLINTON ADMINISTRATION HAS CALLED FOR AN INFORMATION SUPERHIGHWAY BUT HAS PUT FORTH NO SPECIFIC PLANS FOR ONE YET THE STOCKS OF TCI AND OTHER CABLE COMPANIES TOOK A HIT LAST WEEK ON NEWS THAT THE FEDERAL COMMUNICATION COMMISSION DECLARED IT WILL ROLL BACK CABLE RATES AS MUCH AS 15 OR MORE AND PIN FUTURE RATE INCREASES TO INFLATION TCI HAS CALLED THE NEW RATE LAWS SEVERE PUNITIVE AND UNWISE BUT NONETHELESS SAID IT WILL COMPLY AND PUSH FORWARD WITH ITS PLANS FOR THE SUPERHIGHWAY WE SEE A CRYSTALLIZING OF CUSTOMER DEMAND FOR CABLE TV SERVICES SAID BOB THOMSON A SENIOR VICE PRESIDENT AT TCI IT'S BECOME MORE AND MORE APPARENT THERE WILL BE SIGNIFICANT DEMAND FOR ALL THE NEW SERVICES BEING TALKED ABOUT ANOTHER REASON FOR THE ACCELERATION IN PLANS ADDS MR THOMSON IS THAT THE PRICE OF FIBER CONTINUES TO DROP THE DIGITAL FORMAT MR THOMSON SAYS WILL ENABLE CABLE SYSTEMS TO SEND A BILLION BITS OF DATA A SECOND EQUAL TO ABOUT 60000 PAGES OF TEXT PLENTY OF ROOM TO CARRY A WIDE VARIETY OF VIDEOONDEMAND INTERACTIVE PROGRAMMING AND COMPUTER AND PHONE SERVICES MR THOMSON SAID REVENUE FROM THE NEW SERVICES WOULD PAY FOR THE NEW EQUIPMENT REQUIRED AND ROLLOUT OF THE NEW SERVICES WILL BE BASED ON CONSUMER DEMAND THE COMPUTER PEOPLE ARE EXCITED ABOUT A WHOLE RANGE OF PRODUCTS AND SERVICES THAT ARE POSSIBLE SAID MR THOMSON THERE'S NO END OF REASONS FOR US TO BE OPTIMISTIC 9304120084 930412 COMPUTER FIRM RESULTS LIKELY TO BE GLOOMY INDUSTRY'S QUARTERLY DATA TO REFLECT ILLS ABROAD WEAK US RECOVERY BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS ARE NERVOUSLY AWAITING FIRSTQUARTER RESULTS FROM SOME OF THE LARGEST COMPUTER MAKERS AS CONTINUED SLOWNESS ABROAD AND A WEAK RECOVERY OF THE US ECONOMY SUGGEST FIGURES COULD FALL SHORT OF EARLY FORECASTS ANALYSTS IN RECENT DAYS HAVE CUT ESTIMATES FOR SUN MICROSYSTEMS INC TANDEM COMPUTERS INC AND OTHERS WHILE DIGITAL EQUIPMENT CORP AND INTERNATIONAL BUSINESS MACHINES CORP ARE EXPECTED TO POST CONTINUED LOSSES EVEN SOME OF THE BOOMING PERSONALCOMPUTER MAKERS COULD COME IN BELOW EARLIER ESTIMATES AS CAPACITY CONSTRAINTS CONTINUED PRESSURE ON PRICES AND UNFAVORABLE CURRENCY TRENDS LIMIT PROFITS SOME BELIEVE EVERYONE'S ON THE EDGE OF HIS SEAT SAID GEORGE ELLING A MERRILL LYNCH ANALYST JOHN B JONES OF SALOMON BROTHERS SAID THAT DESPITE SOME SIGNS OF A DOMESTIC RECOVERY CAPITAL SPENDING ON COMPUTERS IS WEAK AND OVERSEAS VIRTUALLY EVERY NONENGLISHSPEAKING COUNTRY IS SHOWING SLOWER GROWTH THIS YEAR THAN LAST MR JONES SAYS THAT FIELD SALES OFFICES AT IBM THE INDUSTRY LEADER VIRTUALLY SHUT DOWN DURING THE QUARTER AS THE COMPANY WAS ROCKED BY LAYOFFS AND UNCERTAINTY OVER THE UNPRECEDENTED SEARCH FOR A NEW CHIEF EXECUTIVE OFFICER IBM'S MAINFRAME SALES IN PARTICULAR WERE DOWN AS MUCH AS 50 FROM LAST YEAR'S LEVELS SOME ANALYSTS SAID AS DEEP PRICE CUTTING CONTINUED AND CUSTOMERS PAUSED TO EVALUATE LESSCOSTLY ALTERNATIVES JAY P STEVENS OF DEAN WITTER EXPECTS IBM TO REPORT A LOSS OF 285 MILLION OR 50 CENTS A SHARE ON AN 81 REVENUE DECLINE TO 129 BILLION SALOMON'S MR JONES SEES A DEEPER LOSS RANGING FROM 300 MILLION TO 325 MILLION ON A 5 REVENUE DROP TO 134 BILLION FOR THE YEAREARLIER FIRST QUARTER THE ARMONK NYBASED CONCERN REPORTED NET INCOME RESTATED FOR AN ACCOUNTING CHANGE OF 640 MILLION OR 112 A SHARE ON REVENUE OF 1403 BILLION DIGITAL OF MAYNARD MASS THE NATION'S SECONDLARGEST COMPUTER MAKER IS ALSO EXPECTED TO REPORT A LOSS FOR THE QUARTER ENDED MARCH 30 THOUGH IT SHOULD BE MUCH SMALLER THAN LAST YEAR'S DEFICIT STEVEN MILUNOVICH AN ANALYST WITH MORGAN STANLEY ESTIMATED THE LOSS AT ABOUT 25 MILLION OR 20 CENTS A SHARE EXPENSE CONTROLS WERE GOOD HE SAID WITH PRODUCTDEVELOPMENT COSTS DOWN 15 FROM LAST YEAR AND RESULTS BENEFITING FROM A BIG WORK FORCE REDUCTION IN DECEMBER HE ESTIMATED THAT ANOTHER 4000 JOBS WERE CUT IN THE MARCH QUARTER LEAVING A PAYROLL OF 98000 DOWN FROM 102000 IN JANUARY MOST ANALYSTS ARE IN THE SAME BALLPARK BUT JOHN LEVINSON OF GOLDMAN SACHS & CO PREDICTED A DEEPER LOSS HE EXPECTS 47 MILLION OR 36 CENTS A SHARE THOUGH HE FORECASTS REVENUE CLIMBING 11 TO 36 BILLION LAST YEAR'S THIRDQUARTER LOSS WAS 311 MILLION OR 250 A SHARE BRAD ALLEN DIRECTOR OF INVESTOR RELATIONS WOULDN'T COMMENT ON THE ANALYSTS' ESTIMATES HE SAID THOUGH THAT MARCH IS A SEASONALLY SOFT QUARTER COMPOUNDED BY A WEAK MACROECONOMIC ENVIRONMENT HEWLETTPACKARD CO BY CONTRAST REMAINS STRONGLY PROFITABLE FUELED LARGELY BY SURGING GROWTH IN ITS LASERPRINTER BUSINESS THE PALO ALTO CALIF COMPANY WILL POST NET OF 316 MILLION OR 125 A SHARE ON SHARPLY HIGHER SALES OF 494 BILLION SAID BARRY WILLMAN OF SANFORD C BERNSTEIN THAT COMPARES WITH YEAREARLIER NET INCOME OF 323 MILLION OR 127 A SHARE ON REVENUE OF 418 BILLION BEYOND THE LASER PRINTER BUSINESS THERE WAS A STRONG BACKLOG IN THE QUARTER FOR WORKSTATION AND MULTIUSER COMPUTERS MR WILLMAN SAID ADDING THAT RESULTS SHOULD ALSO BENEFIT FROM A CUT OF 1200 JOBS IN JANUARY HEWLETT NOW EMPLOYS 93100 NONCOMPUTER LINES INCLUDING MEDICAL INSTRUMENTS AND TEST EQUIPMENT WILL ACCOUNT FOR 24 OF SALES IN THE APRIL QUARTER HE SAID SUN MICROSYSTEMS MOUNTAIN VIEW CALIF WAS ABLE TO SHIP A LONGDELAYED WORKSTATION LATE IN THE QUARTER THE HIGHEND MODEL 41 BUT SOME CUSTOMERS HELD BACK OR EVEN WITHDREW ORDERS TO AWAIT MORE POWERFUL MODELS DUE NEXT MONTH SAID GOLDMAN'S MR LEVINSON WHILE MR LEVINSON EARLIER HAD EXPECTED SUN TO EARN 61 MILLION OR 60 CENTS A SHARE FLAT WITH LAST YEAR'S NET OF 60 CENTS A SHARE HE NOW VIEWS 45 CENTS TO 50 CENTS A SHARE AS MORE REALISTIC STILL SALES SURGED AT THE END OF THE QUARTER AND THE US AND JAPAN WERE STRONG SALES TOTALED 122 BILLION UP FROM LAST YEAR'S 952 MILLION SAID BERNSTEIN'S MR WILLMAN MR ELLING OF MERRILL LYNCH AGREED THAT REVENUE GROWTH WAS STRONG BUT SAID THAT THE UNCERTAINTY IS WHETHER THEY WERE ABLE TO BRING THAT TO THE BOTTOM LINE WITH PRICE CUTTING RAMPANT IN PERSONAL COMPUTERS LUCIANNE PAINTER OF SALOMON BROTHERS SAID THAT STRONG GROWTH CONTINUED DURING THE QUARTER BUT SHE TRIMMED HER ESTIMATES ON BOTH COMPAQ COMPUTER CORP AND APPLE COMPUTER INC COMPAQ HOUSTON SHOULD POST NET OF 921 MILLION OR 114 A SHARE ON REVENUE OF 15 BILLION SHE SAID LAST YEAR'S NET WAS 453 MILLION OR 53 CENTS A SHARE ON REVENUE OF 783 MILLION DEMAND IS EXTREMELY STRONG WITH NEW PRODUCTS IN MARCH REIGNITING DEMAND SHE ADDED MS PAINTER SAID CAPACITY CONSTRAINTS WERE LESS OF A PROBLEM LAST QUARTER BUT SHE RECENTLY CUT HER ESTIMATE FROM 120 A SHARE TO REFLECT UNFAVORABLE CURRENCY TRENDS CUPERTINO CALIFBASED APPLE SHOULD EARN 1023 MILLION OR 85 CENTS A SHARE DOWN FROM 135 MILLION OR 109 A SHARE REFLECTING CONTINUED PRICE PRESSURE SHE SAID WHILE SALES SHOULD RISE TO 187 BILLION FROM 171 BILLION 9304120083 930412 MARKETING & MEDIA ADVERTISING EASDON QUITS BACKER SPIELVOGEL ROGERS IS MOVED TO WORLDWIDE BY KEVIN GOLDMAN BACKER SPEILVOGEL BATES THE TROUBLED SAATCHI & SAATCHI CO AGENCY UNDERWENT CHANGE NEAR THE TOP FRIDAY ITS CHIEF CREATIVE DIRECTOR QUIT AND THE HEAD OF ITS NORTH AMERICAN UNIT IS TO BE REASSIGNED DONALD M EASDON EXECUTIVE VICE PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR SAID FRIDAY HE IS IMMEDIATELY OPENING A BOSTONBASED AD AGENCY WITH BILL HEATER 38 A FORMER COLLEAGUE AT HILL HOLLIDAY CONNORS COSMOPULOS MR EASDON 45 WAS RECRUITED JUST TWO YEARS AGO TO HELP RESUSCITATE BACKER'S CREATIVE EFFORTS BUT NEVER QUITE FIT INTO THE HIGHLY POLITICAL CLIMATE AT THE AGENCY AND KENNETH R ROGERS WHO ONLY FIVE MONTHS AGO WAS ELEVATED TO CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS NORTH AMERICAN OPERATIONS IS EXPECTED TO BE REASSIGNED PERHAPS AS EARLY AS TODAY TO THE NEWLY CREATED POSITION OF VICE CHAIRMAN OF BACKER SPIELVOGEL'S WORLDWIDE OPERATIONS ACCORDING TO AGENCY INSIDERS MR EASDON WON'T BE REPLACED INSTEAD THE CREATIVE DEPARTMENT WILL BE LED BY BACKER SPIELVOGEL'S THREE EXECUTIVE CREATIVE DIRECTORS BACKER SPIELVOGEL IS EXPECTED TO GO OUTSIDE THE AGENCY AGAIN FOR A SUCCESSOR TO MR ROGERS THE MOVES COME AS BACKER SPIELVOGEL CONTINUES TO STRUGGLE TO WIN NEW BUSINESS TO OFFSET THE 230 MILLION IN ACCOUNT LOSSES THAT THE AGENCY SUFFERED OVER THE PAST SEVERAL YEARS IN FACT TH ONLY NEW ACCOUNT WON BY THE NEW YORK OFFICE THE SHOP HEADED BY MR ROGERS WAS THE 40 MILLION TRANS WORLD AIRLINES ACCOUNT MESSRS EASDON AND HEATER WHO ARE WELLKNOWN IN ADVERTISING CREATED THE RESPECTED YET BIZARRE ADS FOR INFINITI CARS THAT SHOWED TREES AND ROCKS BUT DIDN'T DISPLAY THE ACTUAL AUTO PRODUCT IN INTRODUCTORY ADS THEY ARE ALSO BEHIND THE STRIKING ADS FOR JOHN HANCOCK FINANCIAL SERVICES REAL LIFE REAL ANSWERS THEIR NEW AGENCY HEATER/EASDON HAS NO CLIENTS AND NO STAFF AS YET BUT ITS PRINCIPALS HAVE CONTACTED FOUR ACCOUNTS CURRENTLY IN REVIEW INCLUDING AUDI OF NORTH AMERICA AND AETNA'S HEALTH ACCOUNT BACKER SPIELVOGEL CLIENTS ARE OFF LIMITS FOR ONE YEAR SAYS MR EASDON WHO SUPERVISED THE NEW TWA ADS WHICH EMPHASIZE ADDED SEAT SPACE AS THE MOST COMFORTABLE WAY TO FLY HE SAYS HE IS PLEASED TO BE LEAVING WITH THAT SUCCESS UNDER HIS BELT TWA WAS A DEAD BRAND WHEN IT ARRIVED HERE HE BOASTS IT HAS RISEN FROM THE ASHES CREATIVELY MR EASDON WHO HAS ONE YEAR REMAINING ON HIS CONTRACT DISMISSES SPECULATION THAT HE DIDN'T GET ALONG WITH MR ROGERS AND HIS RESIGNATION WAS ANYTHING BUT TOTALLY VOLUNTARILY KEN AND I ARE GOOD FRIENDS SAYS MR EASDON ACCORDING TO AN AGENCY EXECUTIVE THE EASDON DEPARTURE WAS BY MUTUAL AGREEMENT AND BACKER SPIELVOGEL DID NOTHING TO DISSUADE HIM FROM LEAVING WHEN HE WAS HIRED IN APRIL 1991 HE WASN'T REGARDED BY SOME AS THE CHARISMATIC LEADER BACKER SPIELVOGEL NEEDED BUT MR EASDON MADE NO SECRET IN THE PAST THAT HE WAS FRUSTRATED AT REPEATED EFFORTS TO INJECT CREATIVITY INTO THE AGENCY BACKER SPIELVOGEL HAS RECEIVED CREATIVE KUDOS FOR TWO HIGHPROFILE CLIENTS MILLER GENUINE DRAFT A PHILIP MORRIS UNIT AND MAGNAVOX HOME ENTERTAINMENT PRODUCTS A DIVISION OF PHILIPS CONSUMER ELECTRONICS MR EASDON SAYS MR HEATER APPROACHED HIM EARLIER THIS YEAR TO REKINDLE DISCUSSIONS ABOUT STARTING THEIR OWN AGENCY MR HEATER LEFT DAYTODAY ADVERTISING IN 1990 TO TRY HIS HAND AT SCREENWRITING BUT HE NEVER LEFT THE CRAFT ENTIRELY HAVING WORKED ON AD CAMPAIGNS FOR INDEPENDENT PRESIDENTIAL CANDIDATE ROSS PEROT EXPLAINING HIS RENEWED FULLTIME COMMITMENT TO MADISON AVENUE MR HEATER SAYS I WATCHED THE SUPER BOWL THIS YEAR AND DECIDED ADVERTISING NEEDED SOME HELP THE NEW AGENCY WHICH HAS THE CREDO TO FILL THE VOID SPEAKS IN BROAD TERMS OF BEING AN EXTENSION OF THE BEST PERSONALITY TRAITS AND VALUES OF ITS LEADERS NOT UNLIKE AN ERA WHEN DOYLE DAN BERNBACH WAS BILL BERNBACH AND OGILVY & MATHER WAS DAVID OGILVY MR EASDON SAYS HE ISN'T WORRIED ABOUT OPENING AN AGENCY IN THE ECONOMICALLY UNCERTAIN 1990S THE TWO OF US ARE PRETTY GOOD HE SAYS TOGETHER WE'RE GREAT IF MR ROGERS 46 DECIDES TO ACCEPT HIS NEW ASSIGNMENT IT IS BELIEVED HE WILL HANDLE THE M&M/MARS ACCOUNT WORLDWIDE AND WORK WITH MULTINATIONAL CLIENTS MR ROGERS DECLINED TO COMMENT FRIDAY ON HIS FUTURE PLANS ONE AGENCY INSIDER SAID NO ONE FEELS GOOD ABOUT LEAVING A JOB UNDONE ALLUDING TO THE OBJECTIVE OF REGAINING BUSINESS WHICH HAS ELUDED THE NORTH AMERICAN AGENCY IN NOVEMBER IN AN UNUSUALLY BLUNT PUBLIC COMMENT CARL SPIELVOGEL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE WORLDWIDE OPERATION PUT AN END TO ANY SPECULATION THAT MR ROGERS'S THENPROMOTION WOULD LEAD TO HIS EVENTUALLY TAKING OVER REINS OF THE ENTIRE AGENCY NO KEN ROGERS WILL NOT BE MY SUCCESSOR MR SPIELVOGEL SAID AT THE TIME AGENCY INSIDERS SAY MR SPIELVOGEL'S SUCCESSOR IS LIKELY TO BE MICHAEL BUNGEY WHO BECAME PRESIDENT AND CHIEF OPERATING OFFICER OF BACKER SPIELVOGEL BATES WORLDWIDE IN JANUARY GUNTHER GAHREN MANAGING DIRECTOR OF BACKER SPIELVOGEL'S GERMANYBASED UNIT IS EXPECTED TO REPLACE MR BUNGEY AS HEAD OF EUROPEAN OPERATIONS UNDER THAT SCENARIO SOME QUESTION WHETHER MR ROGERS WILL REMAIN AT THE AGENCY LONGERTERM CLOROX CO IS CONSIDERING PULLING ITS KINGSFORD CHARCOAL AND COMBAT ROACH KILLER ACCOUNTS FROM THE CHICAGO OFFICE OF DDB NEEDHAM WHICH WON A 40 MILLION CLEANSER ACCOUNT FROM CLOROX RIVAL SC JOHNSON & SON A CLOROX SPOKESMAN SAID FRIDAY ONLY THAT THE COMPANY IS REVIEWING ITS OPTIONS ON THURSDAY NEEDHAM NOTIFIED CLOROX THAT IT HAD WON THE JOHNSON BUSINESS AND WAS RESIGNING FROM AN ESTIMATED 25 MILLION IN CLOROX CLEANING BRANDS INCLUDING CLOROX CLEANUP SOFT SCRUB AND LIQUIDPLUMR DDB'S NEW JOHNSON ACCOUNTS INCLUDE THE WINDEX DUCK VANISH AND DRANO ACCOUNTS MOST OF WHICH CONFLICT DIRECTLY WITH THE CLOROX BRANDS THE AGENCY RESIGNED CLOROX HASN'T SAID WHETHER IT WILL REASSIGN THE BRANDS TO ITS TWO OTHER AGENCIES OR CONSIDER OUTSIDE SHOPS A SPOKESWOMAN FOR DDB NEEDHAM AN OMNICOM GROUP AGENCY SAID EXECUTIVES WERE WAITING FOR WORD ABOUT THE KINGSFORD AND COMBAT BRANDS WE HOPE WE WILL STILL BE A CLOROX AGENCY SHE SAID THE KINGSFORD AND COMBAT BRANDS BILL A COMBINED 14 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING CLOROX HAS SUCH RIGID CONFLICT POLICIES THAT NEEDHAM MUST HAVE KNOWN WHAT THEY WERE DOING SAID BOB LUNDIN PRESIDENT OF NEW BUSINESS CONSULTANT JONESLUNDIN CHICAGO THE AGENCY PUT ITSELF IN A SIMILAR SITUATION IN 1991 BY PITCHING THE 25 MILLION BEEF INDUSTRY COUNCIL ACCOUNT WHILE WORKING FOR CONAGRA'S COUNTRY PRIDE CHICKEN CONAGRA FIRED NEEDHAM FROM THE CHICKEN ACCOUNT AND NEEDHAM WENT ON TO LOSE THE BEEF PITCH 9304120082 930412 ALLURE OF WASTE MANAGEMENT'S STOCK FADES AS OUTLOOK FOR 1ST QUARTER DIMS BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WASTE MANAGEMENT INC'S FIRSTQUARTER RESULTS COULD PROVIDE YET ANOTHER DISAPPOINTMENT FOR SHAREHOLDERS AMID INCREASING SIGNS THAT WALL STREET IS TURNING NEGATIVE ON THE NATION'S NO 1 TRASH HAULER SHARES IN WASTE MANAGEMENT BASED IN OAK BROOK ILL CLOSED THURSDAY AT 31 AFTER HITTING A 52WEEK LOW OF 30375 EARLIER IN THE DAY AND DOWN FROM 46625 EARLY LAST YEAR THAT DECLINE OF NEARLY 35 HAS CUT ABOUT 8 BILLION FROM THE MARKET VALUE OF THE COMPANY'S 489 MILLION SHARES OUTSTANDING WHAT'S MORE THE LIKELIHOOD THAT THE COMPANY'S MANAGEMENT CAN ONCE AGAIN QUICKLY TURN INVESTOR SENTIMENT AROUND SEEMS DIMINISHED IN SEPTEMBER A TWODAY PRESENTATION TO ANALYSTS AND INSTITUTIONAL INVESTORS NEAR COMPANY HEADQUARTERS HELPED PROPEL THE STOCK BACK FROM ABOUT 34 TO AS HIGH AS 41625 DURING THE FOURTH QUARTER THE MESSAGE AT THAT MEETING FROM DEAN L BUNTROCK CHAIRMAN AND CHIEF EXECUTIVE OFFICER WASTE MANAGEMENT IS THE BESTPOSITIONED COMPANY IN THE GARBAGE HAZARDOUSWASTE AND TRASHTOENERGY BUSINESSES BOTH IN NORTH AMERICA AND ABROAD AND DESPITE THE EFFECTS OF THE RECESSION WE DON'T BELIEVE THERE'S BEEN ANY FUNDAMENTAL CHANGE IN THE GARBAGE COLLECTION AND DISPOSAL BUSINESS HE TOLD THE GATHERING FOURTHQUARTER RESULTS WERE BELOW EXPECTATIONS PROMPTING A SELLOFF IN WASTE MANAGEMENT SHARES IN FEBRUARY LAST YEAR'S SECOND QUARTER HAD BEEN A DISAPPOINTMENT ALSO A SORT OF CLINTONGORE EUPHORIA THAT HAD BUOYED MANY STOCKS IN THE ENVIRONMENTAL SECTOR HAS FADED SOME THE COMPANY'S PUBLICLY TRADED HAZARDOUSWASTE UNIT CHEMICAL WASTE MANAGEMENT INC DISCLOSED MARCH 15 THAT ITS FIRSTQUARTER RESULTS WOULD AT BEST BE FLAT WITH LAST YEAR'S PROFIT OF 299 MILLION OR 15 CENTS A SHARE AND MIGHT BE AS LOW AS 10 CENTS A SHARE WASTE MANAGEMENT FAILED IN TWO RECENT BIDS TO WIN BIG DEPARTMENT OF ENERGY CLEANUP CONTRACTS IT ALSO FACES NINE GOVERNMENT ENFORCEMENT ACTIONS THAT IT SAID COULD RESULT IN PENALTIES OF MORE THAN 100000 EACH IT DECLINED TO ELABORATE ON THE ACTIONS EXCEPT TO SAY THAT NONE OF THE GOVERNMENT MATTERS THREATENS TO SHUT DOWN ANY DUMP INCINERATOR OR OTHER COMPANY FACILITY AND THE COMPANY'S PRIME GROWTH VEHICLE WASTE MANAGEMENT INTERNATIONAL PLC ALSO HAS TAKEN A BEATING ITS SHARES CLOSED AT 16625 THURSDAY OFF FROM THE 52WEEK HIGH OF 2475 AS INVESTORS HAVE SCALED BACK EXPECTATIONS OF EUROPEAN GROWTH WHEN WASTE MANAGEMENT'S PRESIDENT PHILLIP B ROONEY WENT TO BOSTON AND NEW YORK LAST MONTH TO MEET WITH INVESTORS AND ANALYSTS ONCE AGAIN TO DISPEL NOTIONS THAT THE GARBAGE BUSINESS HAS CHANGED FOR THE WORSE THIS TIME THE MARKET WASN'T BUYING THE ARGUMENT OR THE STOCK THEY TRIED TO HOLD HANDS AND PEOPLE WEREN'T BUYING IT SAID DOUGLAS R AUGENTHALER AN ANALYST AT OPPENHEIMER & CO WHO HAS LONG BEEN BEARISH ON THE STOCK BUT ONLY RECENTLY HAS GOTTEN THE ATTENTION OF MANY INVESTORS MABON SECURITIES CORP LAST MONTH ISSUED AN ALMOST UNHEARDOF SELL RECOMMENDATION ON WASTE MANAGEMENT WHICH FOR THE PAST DECADE HAS BEEN ONE OF WALL STREET'S FAVORITE STOCKS THE STOCK REMAINS A BUY RECOMMENDATION ON SEVERAL MOREINFLUENTIAL FIRMS' LISTS THE PROBLEMS IN THE TRASH BUSINESS ARE UNDENIABLE WHILE THE EFFECTS OF THE RECESSION ARE TEMPORARY RECYCLING AND DIVERSION OF TRASH TO WASTETOENERGY PLANTS HAVE PERMANENTLY CUT INTO VOLUMES THAT GO TO LUCRATIVE DUMPS INCREASED COMPETITION AND A GLUT OF DUMP SPACE IN SOME BIG MARKETS HAS LED TO PRICE CUTS AND MUNICIPALITIES AND OTHER BIG COMMERCIAL CUSTOMERS HAVE GROWN WISER ABOUT THE TRASH BUSINESS DEMANDING PRICE CONCESSIONS THE COMPANY ACKNOWLEDGED IN ITS ANNUAL REPORT THAT IT DOESN'T EXPECT TO BE ABLE TO INCREASE PRICES IN THE US TRASH BUSINESS DURING THE FIRST HALF OF 1993 SO IN RECENT WEEKS ANALYSTS HAVE SCALED BACK FIRSTQUARTER ESTIMATES TO ABOUT 39 CENTS A SHARE FLAT WITH LAST YEAR'S FIRSTQUARTER PROFIT OF 1921 MILLION OR 39 CENTS SOME DOUBTERS SUCH AS MR AUGENTHALER ARE EXPECTING AS LITTLE AS 37 CENTS WASTE MANAGEMENT DECLINED TO COMMENT ON ITS FIRSTQUARTER RESULTS EXPECTED TO BE DISCLOSED ABOUT APRIL 19 TO WRITE A STORY A WEEK BEFORE WE RELEASE OUR EARNINGS IS IRRESPONSIBLE COMPANY SPOKESMAN WILLIAM PLUNKETT SAID FRIDAY IT COULD HURT INDIVIDUAL INVESTORS 9304120081 930412 CAMBODIA ENJOYS A PRECARIOUS GROWTH UN DRIVES THE ECONOMY BUT WILL SOON DEPART BY RAPHAEL PURA STAFF REPORTER OF THE WALL STREET JOURNAL PHNOM PENH CAMBODIA LOOK DOWN ANY STREET IN THIS CAPITAL AND YOU'RE LIKELY TO SEE PILES OF SAND AND STACKS OF BRICKS AND LUMBER SPILLING OUT INTO THE ROADWAY THE UBIQUITOUS CONSTRUCTION AND RENOVATION REFLECTS PHNOM PENH'S TRANSFORMATION FROM A RUNDOWN BACKWATER INTO A BUSTLING TOWN OF ONE MILLION PEOPLE SINCE A 1991 PEACE ACCORD BROUGHT A MEASURE OF STABILITY TO CAMBODIA TODAY SHOPS ABOUND WITH IMPORTED REFRIGERATORS AIR CONDITIONERS COLOR TELEVISIONS AND OFFICE MACHINES THE BROAD BOULEVARDS THAT WERE NEARLY DEVOID OF TRAFFIC TWO YEARS AGO ARE CLOGGED WITH SHINY NEW CARS MOTORCYLES AND BICYLES BILLBOARDS ADVERTISING CIGARETTES BEER AND SOFT DRINKS ARE EVERYWHERE THE REVIVAL IN BUILDING AND TRADE HAS BEEN SO RAPID THAT ECONOMISTS WITH THE UNITED NATIONS TRANSITIONAL AUTHORITY IN CAMBODIA OR UNTAC RECKON THAT INFLATIONADJUSTED GROWTH IN GROSS DOMESTIC PRODUCT REACHED 8 IN 1992 AND COULD MATCH THAT PACE THIS YEAR GDP MEASURES THE VALUE OF A NATION'S OUTPUT OF GOODS AND SERVICES LESS FOREIGN INCOME THAT SHOULD BE GOOD NEWS FOR CAMBODIA THE PROBLEM IS THAT THE EXPANSION IS DECEPTIVE A MINIBOOM FED BY A TIDE OF UN SPENDING AND SPECULATIVE MONEY THAT ALREADY MAY BE ABOUT TO EBB ECONOMIC REALITY FOR MOST OF CAMBODIA'S NINE MILLION PEOPLE STILL MEANS A BATTLE FOR SUBSISTENCELEVEL SURVIVAL IN THE COUNTRYSIDE THE CURRENT GROWTH REMAINS UNBALANCED AND UNEVEN AND DOESN'T GO VERY DEEP UN ECONOMISTS CONCLUDED IN A RECENT REPORT THE REPORT SAID EXPANSION WAS NARROWLY FOCUSED ON URBAN AREAS MAINLY PHNOM PENH AND WAS DRIVEN OVERWHELMINGLY BY FOREIGN AND LOCAL INVESTORS SEEKING A QUICK RETURN FROM PROPERTY OR SERVICE INDUSTRIES YOU DON'T SEE FACTORIES STARTING UP YOU SEE RESTAURANTS AND MASSAGE PARLORS SAYS JOHN HOLLOWAY WHO HEADS AUSTRALIA'S DIPLOMATIC MISSION IN PHNOM PENH VERY FEW INCOMEPRODUCING ACTIVITIES PUT MUCH MONEY INTO CAMBODIAN HANDS ECONOMIC ANALYSTS SAY SOME WINDOWS OF OPPORTUNITY ARE ALREADY CLOSING ESPECIALLY FOR PROPERTY DEVELOPERS AND THOSE SERVICE INDUSTRIES THAT COUNT ON A FOREIGN CLIENTELE THE UN WILL PULL OUT MOST OF ITS MORE THAN 20000 PERSONNEL WHEN ITS MANDATE EXPIRES IN AUGUST UNTAC'S LOCAL EXPENDITURES WERE ABOUT 200 MILLION LAST YEAR OR ABOUT 10 OF CAMBODIA'S GDP THE UN EXPECTS A SIMILAR AMOUNT TO BE SPENT IN THE FIRST HALF OF 1993 SUCH SPENDING HAS HAD A STRONG IMPACT ON A COUNTRY WHERE THE AVERAGE ANNUAL PERCAPITA INCOME IS A LITTLE MORE THAN 200 NO ALTERNATIVE CASH INFLOW ON THAT SCALE IS IN SIGHT ALMOST EVERYBODY WHO IS HERE CAME BECAUSE OF UNTAC SAYS JULES THOMAS GENERAL MANAGER OF HONG KONG CONSULTANT OMIC LTD'S PHNOM PENH OFFICE NOW THEY ARE WAKING UP TO THE FACT THAT AFTER SEPT 1 IT'S A CAMBODIAN MARKET THE UN'S DEPARTURE ALSO COULD UNNERVE INVESTORS UNCERTAIN OF THE POLITICAL FUTURE AFTER THE SCHEDULED MAY 2327 NATIONAL ELECTION SOME ECONOMISTS BELIEVE MANY CAMBODIAN ENTREPRENEURS HAVE ALREADY EXHAUSTED THEIR HOARDED CAPITAL LEAVING THE ECONOMY HEAVILY DEPENDENT FOR GROWTH ON SKITTISH FOREIGN CAPITAL TO MAKE MATTERS WORSE PREELECTION VIOLENCE IS MOUNTING MUCH OF IT AIMED AT INDUSTRIOUS ETHNIC VIETNAMESE SETTLERS THE PROSPECTIVE END OF THE UNLED BOOM COULD PEEL AWAY PHNOM PENH'S AIR OF PROSPERITY TO REVEAL A TOUGHER ECONOMIC REALITY WITH PREMIER HUN SEN'S REGIME BROKE AND FOREIGN AID TRICKLING IN AT A SLOWER PACE THAN EXPECTED CAMBODIA FACES A FUNDAMENTAL DILEMMA THE GOVERNMENT MUST STABILIZE THE ECONOMY IN THE SHORT TERM BY SLASHING A HUGE BUDGET DEFICIT AMOUNTING TO ABOUT 50 OF SPENDING IN 1992 AND BRAKING TRIPLEDIGIT INFLATION AT THE SAME TIME IT MUST FIND THE RESOURCES TO REBUILD ITS PUBLIC UTILITIES AND SOCIAL SERVICES OR LONGTERM GROWTH WILL BE STIFLED WHOEVER WINS THE ELECTION WILL INHERIT THE SAME PROBLEM THERE WAS A GREAT FEELING OF OPTIMISM THIS TIME LAST YEAR SAYS A WESTERN BANKER IN PHNOM PENH WHO PREDICTS A LEAN FUTURE FOR CAMBODIAN BANKS AND FINANCIAL CONCERNS NOW IT'S NOT THERE THE REALIZATION HAS SET IN THAT IT'S GOING TO BE BLOODY DIFFICULT FASTER AID FLOWS WILL HELP BUT CAMBODIA'S FUTURE WILL DEPEND CRITICALLY ON ATTRACTING LONGTERM FOREIGN INVESTMENT GEARED TO PRODUCING FOR THE DOMESTIC MARKET OR TO EXPLOITING LOCAL RESOURCES FOR EXPORT IN THIS AREA GAINS HAVE BEEN MEAGER MALAYSIAN INVESTORS HAVE REHABILITATED A BREWERY AND SOME OTHER FOOD AND BEVERAGE VENTURES HAVE BEGUN A FEW TEXTILE AND GARMENTMAKING VENTURES ARE IN THE WORKS MAINLY IN THE HOPE OF EXPLOITING CAMBODIA'S UNUSED EXPORT QUOTAS BEYOND THAT INDUSTRIAL INVESTMENT HAS BEEN NEGLIGIBLE MORE IMPORTANT FOR CAMBODIA THAN THE MINIBOOM OR BUST IS THE WHOLE QUESTION OF WHEN INVESTMENT IN MANUFACTURING IS GOING TO CLICK IN SAYS UNTAC'S SENIOR ECONOMIC ADVISER IN CAMBODIA ROGER LAWRENCE THAT CONCERNS US A GREAT DEAL BECAUSE WE SEE IT AS A KEY TO THE SUSTAINABILITY OF THE EXPANSION OUK CHAY A VICE DIRECTOR IN THE PLANNING MINISTRY SAYS POTENTIAL FOREIGN VENTURES IN CEMENT GARMENTS AND CIGARETTES ARE ON THE TABLE WHILE A 10 MILLION SAWMILL PROJECT WITH RUSSIAN INVESTORS IS UNDER CONSTRUCTION HE ADDS THAT A BREWERY INVESTMENT APPLICATION FROM SINGAPORE'S ASIA PACIFIC BREWERIES LTD IS BEING CONSIDERED THE OFFICIAL CONCEDES HOWEVER THAT SOME INVESTORS WHO HAVE APPROVALS IN PRINCIPLE ARE WAITING AND DON'T BEGIN THE NEXT STEP HE BLAMES THE HESITATION ON A KHMER ROUGELED SURGE IN VIOLENCE IN RECENT WEEKS VICE MINISTER OF PLANNING HUL LIM ACKNOWLEDGES THAT MANUFACTURING INVESTORS HAVE BEEN SLOW TO ARRIVE BECAUSE THE POLITICAL UNCERTAINTY MAKES IT MORE CONVENIENT TO INVEST IN SERVICES BUT HE PROMISES INCENTIVES FOR FOREIGN INVESTMENT IN PRIORITY AREAS INCLUDING IMPORTSUBSTITUTION INDUSTRIES RESOURCE PROCESSING AND INFRASTRUCTURE PROJECTS HE ADDS THAT PHNOM PENH IS NOW SEEKING PRIVATE INVESTMENT IN POWER GENERATION AND TALKS OF CREATING A FREETRADE ZONE NEAR SIHANOUKVILLE CAMBODIA'S ONLY DEEPWATER PORT IN ADDITION THE GOVERNMENT HAS REACHED AGREEMENTS WITH THAI AND MALAYSIAN COMPANIES TO SET UP CELLULARTELEPHONE COMMUNICATIONS NETWORKS TO AUGMENT CAMBODIA'S WOEFUL STATERUN PHONE SYSTEM STILL ATTRACTING MORE LONGERTERM VENTURES WILL BE TOUGH BEYOND THE OBVIOUS CONCERN OVER CAMBODIA'S POLITICAL FUTURE WOULDBE INVESTORS ALSO MUST COPE WITH CAMBODIA'S FINANCIAL INSTABILITY INFLATION RAN AT CLOSE TO 300 IN 1992 AND HAS SOARED ALMOST 70 IN THE PAST MONTH ALONE A JUMP SOME ATTRIBUTE TO ETHNIC VIETNAMESE DUMPING CAMBODIAN RIEL FOR US DOLLARS AND JITTERS OVER THE COMING ELECTION THE UNDERLYING CAUSE HOWEVER IS THE HUN SEN GOVERNMENT'S LARGE BUDGET DEFICIT TO PLUG THE GAP PHNOM PENH HAS PRINTED MONEY AND WITHHELD SALARIES OF ITS CIVIL SERVANTS MEASURES THAT DON'T INSTILL CONFIDENCE IN THE COUNTRY'S ECONOMIC MANAGEMENT NOR DOES THE GOVERNMENT'S EFFORT TO AUGMENT INCOME WITH STEPPEDUP LOGGING AND LUMBER PRODUCTION DONE AT THE COST OF WIDESPREAD DESTRUCTION TO CAMBODIA'S FORESTS UNTAC AND INTERNATIONAL AGENCIES SUCH AS THE WORLD BANK ARE ATTEMPTING TO TIGHTEN FINANCIAL CONTROLS AND HELP PHNOM PENH GENERATE MORE REVENUE FROM TAXATION AND CUSTOMS COLLECTIONS A 10 TAX ON HOTELS IS IN EFFECT AND CUSTOMS REVENUES HAVE BEEN INCREASED MORE TAXES ON SERVICES AND LUXURY GOODS ARE BEING CONSIDERED BUT CAMBODIA HAS NO INCOME TAX AND EFFORTS TO TAX PRIVATE BUSINESSES ARE CHARACTERIZED BY RAMPANT CORRUPTION BUSINESSMEN SAY YOU'LL GET PEOPLE COMING TO YOUR OFFICE OR EVEN TO YOUR HOUSE AT NIGHT SAYING YOU SHOULD PAY THIS OR THAT AMOUNT A EUROPEAN EXECUTIVE SAYS THERE ARE NO RULES OR REGULATIONS EVERYTHING IS NEGOTIATED THE FINANCIAL SQUEEZE MEANS THAT THE STRAINS ON CAMBODIA'S DECREPIT PHYSICAL INFRASTRUCTURE HAVEN'T SIGNFICANTLY EASED A UNSPONSORED CONFERENCE LAST JUNE IN TOKYO PRODUCED PLEDGES OF 880 MILLION IN AID TO HELP REHABILITATE THE COUNTRY'S PUBLIC UTILITIES AND PUBLIC SERVICES BUT UNTAC OFFICIALS SAY THE MONEY HASN'T ARRIVED QUICKLY ENOUGH WITH DONORS PREFERRING TO FUND LARGESCALE PROJECTS THAT TAKE TIME TO IMPLEMENT AS LITTLE AS 10 TO 20 OF AID COMMITMENTS HAS BEEN SPENT UN OFFICIALS ESTIMATE THEY HAD HOPED FOR A DISBURSEMENT LEVEL TWICE THAT BY EARLY 1992 IN A REPORT TO DONORS IN FEBRUARY THE UN SAID THAT WHILE THE AID PROCESS LAGGED THE COUNTRY'S NEEDS HAVE NOT GONE AWAY IF ANYTHING THE NEEDS OF THE POOREST HAVE BEEN EXACERBATED BY INFLATION WE'RE NOT SATISFIED WITH THE RAPIDITY WITH WHICH COMMITMENTS ARE TRANSLATED INTO ACTUAL DISBURSEMENTS SAYS YASUSHI ASKASHI WHO HEADS UNTAC'S OPERATIONS WE WANT THE DONORS TO HURRY UP INADEQUATE POWER AND WATER SUPPLIES BAD ROADS AND UNRELIABLE COMMUNICATIONS MEAN THAT FOREIGN OR LOCAL INVESTORS MUST OFTEN PROVIDE FOR THEIR OWN NEEDS THE ABSENCE OF INFRASTRUCTURE IS A FACTOR THAT'S BOUND TO DEPRESS PRIVATESECTOR ACTIVITY SAYS MR LAWRENCE ADDING THAT MULTILATERAL AID WILL HAVE TO GET GOING AS FAST AS POSSIBLE TO UNLOCK THIS SITUATION 9304120080 930412 TRADE ASSOCIATIONS SUE MASSACHUSETTS OVER AUTO EMISSIONS RULES BOSTON TRADE GROUPS REPRESENTING AUTO MAKERS AND CAR DEALERS SUED MASSACHUSETTS TO PREVENT IT FROM IMPLEMENTING THE TOUGHER CALIFORNIA CLEAN AIR STANDARD IN LATE 1994 THE SUIT WAS FILED FRIDAY IN US DISTRICT COURT IN BOSTON BY THE MASSACHUSETTS AUTOMOBILE DEALERS ASSOCIATION THE ASSOCIATION OF INTERNATIONAL AUTOMOBILE MANUFACTURERS AND THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION THE US GOVERNMENT HAS REQUIRED THAT STATES MEET EITHER THE FEDERAL OR THE CALIFORNIA STANDARD SINCE MASSACHUSETTS IS NOT REQUIRING THE SAME REFORMULATED FUELS AS CALIFORNIA THE AUTO INDUSTRY ARGUES IT WOULD HAVE TO BUILD A THIRD CAR AT ADDITIONAL EXPENSE TO MEET THE MASSACHUSETTS STANDARD HOWEVER DAN GREENBAUM COMMISSIONER OF THE MASSACHUSETTS DEPARTMENT OF ENVIRONMENTAL PROTECTION SAID THE COMMONWEALTH'S TECHNICAL EXPERTS FOUND CARS COULD MEET THE CALIFORNIA STANDARD WITHOUT THE CALIFORNIA FUELS CALIFORNIA REQUIRES AUTO MAKERS TO REDUCE POLLUTION BY AT LEAST 50 AND TO SELL A LIMITED NUMBER OF ELECTRIC CARS BY 1998 MASSACHUSETTS NEW JERSEY AND MAINE HAVE OPTED FOR THE CALIFORNIA STANDARD LAST YEAR A FEDERAL JUDGE STRUCK DOWN THE USE OF THE CALIFORNIA STANDARD IN NEW YORK I THINK OUR CHANCES OF WINNING IN MASSACHUSETTS ARE PRETTY GOOD GIVEN WHAT HAPPENED IN NEW YORK SAID CHARLES LOCKWOOD VICE PRESIDENT FOR THE ASSOCIATION OF INTERNATIONAL AUTOMOBILE MANUFACTURERS WHICH REPRESENTS FOREIGN CARS MAKERS MR GREENBAUM DISAGREED AND HE ALSO PREDICTED THAT THE NEW YORK RULING WOULD BE OVERTURNED 9304120079 930412 CLINTON OFFERS MEXICO CANADA CHANGE IN NAFTA ENVIRONMENT LABOR PANELS TO GET LIMITED POWER FIERCE OPPOSITION SEEN BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS READIED A PLAN THAT WOULD LIMIT THE POWER OF ENVIRONMENTAL AND LABOR COMMISSIONS AS PART OF THE NORTH AMERICAN FREETRADE PACT ALLAYING FEARS IN MEXICO AND CANADA BUT SETTING THE STAGE FOR FIERCE OPPOSITION IN THE US SEPARATELY PRESIDENT CLINTON PUSHED FORWARD ON ANOTHER TRADE FRONT ASKING CONGRESS TO RENEW ITS AUTHORITY TO VOTE SIMPLY YES OR NO ON A WORLD TRADE PACT IN ORDER TO KEEP THE MEASURE FROM GETTING TANGLED BY AMENDMENTS THE SPECIAL AUTHORITY TO PLACE THE WORLD TRADE AGREEMENT ON A SOCALLED FAST TRACK EXPIRED MARCH 2 THE REQUEST MEANS A LONGER WAIT FOR THE TALKS WHICH ARE ALREADY ENTERING THEIR SEVENTH YEAR IT COMES DAYS AFTER FRANCE OFFERED TO SEPARATELY NEGOTIATE THE OILSEED PART OF THE USEUROPEAN COMMUNITY FARM PACT DISAGREEMENT OVER OILSEED ISSUES HAS STALLED THE BROADER ROUND OF TALKS THE EXTENSION WHICH CONGRESS IS EXPECTED TO APPROVE WOULD GIVE THE ADMINISTRATION BREATHING SPACE TO COMPLETE ITS NEGOTIATIONS ON THE NORTH AMERICAN FREE TRADE AGREEMENT PARTICULARLY AT A TIME WHEN NEGOTIATIONS OVER SIDE ISSUES ARE ENTERING A TRICKY PHASE UNIONS AND ENVIRONMENTAL GROUPS WITH SUPPORT FROM THEIR CONGRESSIONAL ALLIES HAVE DEMANDED THE FREETRADE PACT INCLUDE TRINATIONAL ENVIRONMENTAL AND LABOR COMMISSIONS THEIR SUPPORT OF THE PACT HINGES ON WHETHER US TRADE NEGOTIATORS CAN CREATE A STRONG SYSTEM UNDER WHICH ISSUES SUCH AS CHILD LABOR MINIMUM WAGE TOXICWASTE CLEANUP AND EMISSIONS STANDARDS CAN BE ADDRESSED A SENIOR ADMINISTRATION OFFICIAL SAID IN A BRIEFING FRIDAY THAT THE US PLANS TO PROPOSE THAT THE COMMISSIONS NOT BE GIVEN THE AUTHORITY TO ISSUE SUBPOENAS IMPOSE SANCTIONS OR ENFORCE THEIR DECISIONS BUT RATHER ACT AS AN OMBUDSMAN OR WATCH DOG HE SAID THE COMMISSIONS RECOMMENDATIONS WOULDN'T BE BINDING BUT WOULD INSTEAD CARRY MORAL SUASION THE OFFICIAL SAID THAT A SEPARATE DISPUTERESOLUTION PROCESS WOULD BE SET UP TO ENFORCE THE COMMISSIONS' FINDINGS BUT THAT THE US HADN'T YET DRAFTED HOW IT WOULD WORK THE US PLAN CALLS FOR THE COMMISSIONS TO CONDUCT STUDIES OF ENVIRONMENTAL AND LABOR ISSUES SAID THE OFFICIAL WHO SHIED FROM CALLING THEM INVESTIGATIONS UNDER THE US PLAN THE OFFICIAL STRESSED THE COMMISSIONS WOULDN'T INFRINGE ON THE SOVEREIGNTY OF ANY COUNTRIES OR REPLACE TRADE LAWS MEXICAN AND CANADIAN NEGOTIATORS HAVE EXPRESSED CONCERN THE COMMISSIONS WOULD DO JUST THAT AND US NEGOTIATORS SEEM INTENT ON ADDRESSING THOSE WORRIES DURING THE TALKS SCHEDULED TODAY AND TOMORROW IN MEXICO CITY HOWEVER APPEASING FOREIGN CONCERNS OVER INTERVENTION DOESN'T PLAY AS WELL WITH VARIOUS GROUPS IN THE US WHO HAVE LONG WORRIED THE CLINTON ADMINISTRATION WOULD AGREE TO A LAME OVERSIGHT PLAN SOVEREIGNTY IS A STRAW MAN HERE ASSERTED MARK ANDERSON DIRECTOR OF THE TRADE TASK FORCE AT THE AFLCIO THE BIG LABOR UNION INTERNATIONAL TRADE AGREEMENTS ARE ABOUT DIMINISHING SOVEREIGNTY HE SAID IT WOULD BE VERY DISAPPOINTING IF THEY USE SOVEREIGNTY AS AN EXCUSE FOR FAILING TO ESTABLISH ENFORCEABLE RULES ON LABOR RIGHTS AND STANDARDS THE PLAN FACES CRITICISM FROM VARIOUS CONGRESSIONAL LEADERS WHO HAVE CALLED FOR POWERFUL COMMISSIONS SEN MAX BAUCUS D MONT CHAIRMAN OF THE SENATE ENVIRONMENT AND PUBLIC WORKS COMMITTEE WANTS THEM TO HAVE THE AUTHORITY TO ISSUE SUBPOENAS SO THAT THEY ALSO HAVE SUFFICIENT CLOUT TO CONDUCT INVESTIGATIONS ONE WORRY HAS BEEN THAT US COMPANIES MAY YANK THEIR BUSINESS OUT OF THE US IF STANDARDS IN MEXICO FOR EXAMPLE ARE MORE LAX THAN HERE STRUCTURALLY THE US PLANS CALLS FOR THE COMMISSIONS TO INCLUDE GOVERNMENT REPRESENTATIVES FROM THE THREE COUNTRIES AND A SECRETARIAT WITH COMMISSION STAFFS PRESIDENT CLINTON AND HIS TEAM HAVE FLIPFLOPPED ON THE AMOUNT OF MUSCLE THEY WANT TO PROVIDE THE COMMISSIONS IN OCTOBER MR CLINTON STRESSED THEY SHOULD HAVE THE POWER TO ENFORCE THE LAWS BUT LAST MONTH US TRADE REPRESENTATIVE MICKEY KANTOR TESTIFIED IN CONGRESS THAT THE POWERS SHOULD BE CURBED 9304120078 930412 REVIEW & OUTLOOK EDITORIAL ASIDES ENOUGH SAID WHEN 19 COUNTRIES AND CAMBODIA'S FOUR MAJOR FACTIONS SIGNED THE PARIS PEACE ACCORDS IN OCTOBER 1991 THE INCLUSION OF THE KHMER ROUGE WAS JUSTIFIED ON THE GROUNDS THAT THESE KHMER ROUGE WERE DIFFERENT THAN THE ONES RESPONSIBLE FOR A MILLION DEATHS IN THREE YEARS OF RULE THE KHMER ROUGE LEADERSHIP FED THIS IMPRESSION NICELY WE HAVE TO ADOPT A REGIME OF LIBERAL DEMOCRACY PLURALISM AND CAPITALISM SAID KHIEU SAMPHAN ONE OF THE ARCHITECTS OF THE 197578 GENOCIDE YES THAT'S THE SAME KHIEU SAMPHAN WHO NOW THREATENS FURTHER KILLINGS OF VIETNAMESE CIVILIANS HALF A DOZEN MASSACRES IN THE PAST SIX WEEKS HAVE LEFT AT LEAST 42 DEAD MANY OF THEM CHILDREN HE CALLS THIS THE POPULAR MOVEMENT AGAINST THE VIETNAMESE MR SAMPHAN'S BELIEF IN DEMOCRACY IS ALSO SHAKEN NEXT MONTH'S ELECTIONS HE SAYS ARE CERTAINLY GOING TO MEET COMPLETE FAILURE THE KHMER ROUGE HAVE REFUSED TO PARTICIPATE IN THE ELECTIONS AND HAVE THREATENED TO PREVENT THEM ALTOGETHER TODAY'S KHMER ROUGE ARE A MORE CONVINCING REPRESENTATION OF THEIR ODIOUS SELVES THAN THE SPIFFEDUP CROP THAT WRIGGLED ITS WAY INTO THE PEACE ACCORDS BUT THE QUESTION REMAINS DID THE PARIS CONFEREES TRULY EXPECT THE KHMER ROUGE TO CHANGE THEIR COLORS 9304120077 930412 BUSINESS BRIEF THOMSONCSF CONSUMER ELECTRONICS UNIT NARROWED ITS LOSSES IN 1992 THE COMPANY WHICH IS ONE OF THE WORLD'S LEADING MANUFACTURERS OF TELEVISION SETS SAID IT MAINTAINED ITS EUROPEAN MARKET SHARE DESPITE A CONTRACTION OF 2 IN SALES TO 3055 BILLION FRANCS AFTER ADJUSTMENT TO REFLECT EXCHANGE RATE FLUCTUATIONS SALES SHOWED AN INCREASE OF 2 THOMSON CONSUMER ELECTRONICS SAID ITS OPERATING LOSS FELL TO 228 MILLION FRANCS IN 1992 FROM 330 MILLION FRANCS IN 1991 9304120076 930412 BUSINESS BRIEF ALPS ELECTRIC CO FORECASTS FOR PRETAX PROFITS ARE INCREASED FOR FISCAL YEAR ALPS ELECTRIC CO A MAJOR JAPANESE ELECTRONICS PARTS MAKER RAISED ITS FORECASTS FOR PRETAX PROFITS FOR THE YEAR ENDED MARCH 31 REFLECTING THE SALE OF SOME OF ITS SECURITIES HOLDINGS THE FORECAST FOR CONSOLIDATED PRETAX PROFIT ROSE 24 TO 56 BILLION YEN 494 MILLION FROM 45 BILLION YEN FOR THE PARENT COMPANY ALONE THE PRETAX PROFIT OUTLOOK MORE THAN DOUBLED TO 21 BILLION YEN FROM 800 MILLION YEN FORECAST IN OCTOBER ON A CONSOLIDATED BASIS THE COMPANY NOW PREDICTS IT WILL POST A NET LOSS OF 23 BILLION YEN PARTLY AS A RESULT OF EXTRAORDINARY LOSSES AT ITS SUBSIDIARY TOHOKU ALPS ELECTRONIC CO LAST OCTOBER THE COMPANY HAD FORECAST NET INCOME OF 15 BILLION YEN ALPS SAID THE WEAKNESS IN JAPAN'S AUDIOVISUAL AND COMPUTER EQUIPMENT MARKETS FORCED IT TO LOWER ITS GROUP SALES PROJECTIONS 23 TO 420 BILLION YEN FROM 430 BILLION YEN 9304120075 930412 BUSINESS BRIEF NORTHROP CORP SAMSUNG AEROSPACE AGREES TO TAKE PART IN F5 UPGRADE SOUTH KOREA'S SAMSUNG AEROSPACE INDUSTRIES LTD PART OF SAMSUNG GROUP SAID IT EXCHANGED A MEMORANDUM OF AGREEMENT WITH NORTHROP CORP TO TAKE PART IN NORTHROP'S PROJECT TO UPGRADE ITS F5 FIGHTERS ACCORDING TO A SAMSUNG OFFICIAL THE COMPANY SIGNED THE AGREEMENT THURSDAY IN LOS ANGELES WHERE NORTHROP IS BASED NORTHROP SAID THE OFFICIAL WILL INCLUDE MORE COUNTRIES IN THE MODERNIZATION PROGRAM WHICH INVOLVES MORE THAN 2400 F5 FIGHTERS IN 28 COUNTRIES THE INTERNATIONAL PROGRAM WILL FOCUS ON UPGRADING OUTDATED MODELS OF F5 FIGHTERS TO THE EQUIVALENT LEVEL OF F16 AND F18 FIGHTERS SAMSUNG WILL DECIDE ITS SHARE IN THE PROJECT AFTER CONSULTING WITH NORTHROP IN THE FIRST HALF OF THIS YEAR 9304120074 930412 BUSINESS BRIEF MCDONNELL DOUGLAS CORP ORDER FOR UP TO 1 BILLION IS RECEIVED FROM AIR FORCE MCDONNELL DOUGLAS CORP ST LOUIS WON A MAJOR AIR FORCE ROCKET CONTRACT THAT COULD BE WORTH AS MUCH AS 1 BILLION IF ALL OPTIONS ARE EXERCISED ACCORDING TO GOVERNMENT AND COMPANY OFFICIALS AN INITIAL SYSTEMSINTEGRATION CONTRACT VALUED AT 73 MILLION WAS AWARDED TO THE COMPANY FOR THE MEDIUM LAUNCH VEHICLE III THE CONTRACT ASSURES THAT THE COMPANY'S MCDONNELL DOUGLAS AEROSPACE UNIT BASED IN HUNTINGTON BEACH CALIF WILL PROVIDE DELTA II EXPENDABLE ROCKETS FOR AS MANY AS 36 LAUNCHES OVER SIX YEARS PRIMARILY FOR GLOBAL POSITIONING SATELLITES UNDER THE AGREEMENT THE AIR FORCE WILL CALL ON THE COMPANY FOR LAUNCH ON DEMAND SERVICES WITH AS LITTLE AS 40 DAYS NOTICE BETWEEN ONE AND SIX LAUNCHES A YEAR WILL BE ORDERED 9304120073 930412 CHRYSLER TO BUILD RIGHTHANDDRIVE CHEROKEES IN OHIO DETROIT CHRYSLER CORP SAID IT WILL BUILD ABOUT 7000 TO 8000 RIGHTHANDDRIVE JEEP CHEROKEE SPORTUTILITY VEHICLES AT ITS TOLEDO OHIO ASSEMBLY PLANT TO SELL IN EUROPE JAPAN AND AUSTRALIA CHRYSLER ALREADY SELLS THE RIGHTHANDDRIVE CHEROKEE IN EUROPE AND JAPAN AND PLANS TO BEGIN SHIPPING THE VEHICLES TO AUSTRALIA THIS FALL MEANWHILE GENERAL MOTORS CORP SAID IT IS IDLING ASSEMBLY PLANTS IN TWO CITIES FOR ONE WEEK BECAUSE OF SLOW SALES GM'S HAMTRAMCK MICH ASSEMBLY PLANT WHICH BUILDS THE BUICK RIVIERA AND CADILLAC ELDORADO SEVILLE AND ALLANTE AND ITS ST THERESA ONTARIO ASSEMBLY PLANTS WHICH BUILD THE CHEVROLET CAMARO AND PONTIAC FIREBIRD ARE TEMPORARILY CLOSED THIS WEEK ALL OF THE BIG THREE AUTO MAKERS SCHEDULED DAILY OVERTIME AT SEVERAL US AND CANADIAN ASSEMBLY PLANTS THIS WEEK AND LAST WEEK ALTOGETHER THE AUTO MAKERS WHO BUILD CARS IN THE US PLANNED TO ASSEMBLE 186282 CARS AND LIGHT TRUCKS THE WEEK OF APRIL 5 DOWN 67 FROM THE 199723 ASSEMBLED A YEAR AGO FOR ALL OF MARCH THE AUTO MAKERS BUILT 1021164 CARS AND TRUCKS UP 30 FROM THE TOTAL IN THE YEARAGO MONTH 9304120072 930412 TECHNOLOGY APPLE ADDS MODELS TO ITS MASSMARKET LINE OF COMPUTERS CUPERTINO CALIF APPLE COMPUTER INC HOPING TO BROADEN ITS APPEAL TO FIRSTTIME BUYERS SAID IT PLANS TO BEGIN SELLING THREE NEW MODELS OF ITS MACINTOSH PERFORMA LINE OF DESKTOP COMPUTERS APPLE HAS BEEN UNDER CONSTANT PRESSURE FROM SOCALLED DOSBASED PERSONALCOMPUTER MANUFACTURERS WHICH ARE NUMEROUS AND AS A GROUP OFFER A DIZZYING ARRAY OF PRODUCTS THE DOS COMPUTER OPERATING SYSTEM IS THE MAIN RIVAL TO APPLE'S PROPRIETARY OPERATING SYSTEM TO STAVE OFF THE COMPETITION APPLE HAS RAPIDLY EXPANDED ITS OWN PRODUCT LINE IN THE PAST YEAR THIS TIME APPLE IS ADDING MODELS TO ITS LINE OF CONSUMERORIENTED COMPUTERS WHICH IT INTRODUCED SIX MONTHS AGO THE NEW COMPUTERS WILL BE ENHANCED VERSIONS OF THE MIDDLEOFTHELINE 400 MODEL THE BIGGEST SELLING PERFORMA ACCORDING TO APPLE THE NEW MACHINES WILL BE DRESSED UP WITH SOFTWARE AND A MODEM ENABLING A USER TO PAY BILLS ELECTRONICALLY TAP INTO DATABASES SWAP DATA WITH OTHER COMPUTERS AND PERFORM OTHER FUNCTIONS BY CONNECTING THE COMPUTER TO A TELEPHONE LINE SUCH FEATURES HAD BEEN OPTIONS ON PREVIOUS PERFORMAS WHICH ARE DESIGNED TO BE OPERATED BY PEOPLE WITH LITTLE COMPUTER TRAINING OR KNOWLEDGE APPLE SAID IT WON'T SET SUGGESTED RETAIL PRICES FOR THE NEW COMPUTERS CALLED MODELS 405 430 AND 450 CONTINUING A PRICING STRATEGY BEGUN WITH EARLIER PERFORMA MODELS INSTEAD PRICES WILL BE SET BY DEALERS AN APPLE SPOKESMAN SAID PRICES ARE EXPECTED TO RANGE FROM 1300 TO 1850 DEPENDING ON FEATURES 9304120071 930412 ECONOMY TWO OF CLINTON'S MAJOR INITIATIVES ARE IN TROUBLE CONGRESS BALKS AT REVIVING INVESTMENTTAX CREDIT AND AT SPENDING BOOST BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THREE MONTHS INTO HIS PRESIDENCY BILL CLINTON IS HAVING TROUBLE PERSUADING CONGRESS TO DO TWO THINGS THAT CONGRESS USUALLY DOES HAPPILY CUT TAXES AND INCREASE SPENDING ON THE TAX FRONT MR CLINTON'S PROPOSAL TO REVIVE THE INVESTMENT TAX CREDIT A KEY TO HIS STRATEGY FOR GIVING THE ECONOMY A QUICK BOOST IS ALL BUT DEAD AND NO ONE WITH CLOUT IN CONGRESS IS TALKING ABOUT A TAX CUT FOR THE MIDDLE CLASS A MUCHDISCUSSED FEATURE OF MR CLINTON'S CAMPAIGN PLATFORM THAT EVAPORATED AS SOON AS HE WAS ELECTED ON THE SPENDING FRONT PRESIDENT CLINTON ALMOST SURELY WILL PARE HIS ECONOMICSTIMULUS SPENDING PLAN TO GET IT BY SENATE REPUBLICANS AND HIS BUDGET DIRECTOR LEON PANETTA CONCEDED LAST WEEK THAT MR CLINTON WILL HAVE TO TRIM HIS LONGERRUN INVESTMENT SPENDING PLAN AS WELL BECAUSE OF CONGRESSIONALLY SET CAPS ON SPENDING THE POLITICS ARE CHANGING SAID MARTHA PHILLIPS FORMER CHIEF OF THE REPUBLICAN STAFF ON THE HOUSE BUDGET COMMITTEE AND NOW EXECUTIVE DIRECTOR OF THE CONCORD COALITION AN ANTIDEFICIT GROUP FORTUNATELY ELECTED OFFICIALS DO OCCASIONALLY LISTEN TO THEIR CONSTITUENTS ALTHOUGH ROSS PEROT'S SUCCESS IN SELLING FISCAL AUSTERITY TO THE PUBLIC MAY BE PARTLY RESPONSIBLE FOR THE SHIFT IN CONGRESSIONAL SENTIMENT MR CLINTON IRONICALLY PROBABLY HAD SOMETHING TO DO WITH IT AS WELL HE CAMPAIGNED ON THE NEED FOR INCREASED PUBLIC INVESTMENT BUT AFTER HIS INAUGURATION HE ALSO PREACHED THE NEED FOR SACRIFICE TO BRING THE DEFICIT DOWN CLINTON PUSHED THE BALL MS PHILLIPS SAID HE DIDN'T EXPECT CONGRESS TO TAKE HIM SO SERIOUSLY IN AN EFFECTIVE DISPLAY OF PARTY DISCIPLINE THE DEMOCRATIC CONGRESSIONAL LEADERSHIP PUSHED THROUGH A BUDGET RESOLUTION THAT EMBODIES MR CLINTON'S DEFICITREDUCTION PLAN AND IN SOME RESPECTS GOES BEYOND IT THE PRIVATE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET FIGURES THAT THE RESOLUTION GIVES APPROPRIATIONS COMMITTEES 11 BILLION LESS TO SPEND IN FISCAL 1994 WHICH BEGINS OCT 1 THAN MR CLINTON'S NEW BUDGET PROPOSES AS PREVIOUSLY REPORTED THE CHAIRMEN OF THE TAXWRITING COMMITTEES REP DAN ROSTENKOWKSI D ILL AND SEN DANIEL PATRICK MOYNIHAN D NY SAID IN SEPARATE INTERVIEWS LATE LAST MONTH THAT THEY DON'T SUPPORT THE INVESTMENT TAX CREDIT OVER THE WEEKEND HOWEVER SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE AND HOUSE SPEAKER THOMAS FOLEY D WASH REITERATED THEIR SUPPORT FOR THE TAX CREDIT I DON'T THINK IT'S DEAD MR MITCHELL SAID YESTERDAY ON ABCTV'S THIS WEEK WITH DAVID BRINKLEY UNDER MR CLINTON'S PLAN BIG COMPANIES WOULD GET A TAX CREDIT FOR CERTAIN PURCHASES OF EQUIPMENT MADE BETWEEN DEC 3 1992 AND DEC 31 1994 FOR SMALL BUSINESSES THE TAX CREDIT WOULD BE PERMANENT CONGRESS'S JOINT COMMITTEE ON TAXATION FIGURES THE TWO CREDITS WOULD COST ABOUT 295 BILLION OVER THE NEXT FIVE YEARS IN THE HOUSE WAYS AND MEANS COMMITTEE AND THE SENATE FINANCE COMMITTEE THE QUESTION IS WHAT TO DO WITH THAT MONEY ONCE THE HORSETRADING OVER THE TAX BILL BEGINS USING THE MONEY TO REDUCE THE DEFICIT IS THE LEAST LIKELY OPTION WITHOUT THE REVENUELOSING INVESTMENT TAX CREDIT CONGRESS WOULD NEED TO RAISE OTHER TAXES LESS AND MR ROSTENKOWSKI HAS SUGGESTED REVISING MR CLINTON'S PLAN TO RAISE 312 BILLION BY INCREASING THE CORPORATE INCOMETAX RATE TO 36 FROM THE CURRENT 34 OTHER DEMOCRATS ARE INTERESTED IN USING THE MONEY TO SWEETEN THE RESEARCH AND DEVELOPMENT TAX CREDIT TREASURY SECRETARY LLOYD BENTSEN IN AN APPEARANCE ON NBCTV'S MEET THE PRESS YESTERDAY SAID ANY SUBSTITUTE FOR THE INVESTMENT TAX CREDIT MUST BE SOMETHING THAT'S INVESTING IN THE FUTURE OF THE COUNTRY TO TRY TO ENCOURAGE THE CREATION OF JOBS HE WASN'T SPECIFIC ADMINISTRATION ECONOMISTS ARGUE THAT THE TEMPORARY INVESTMENT TAX CREDIT WOULD PACK A PARTICULARLY STRONG AND QUICK PUNCH BECAUSE IT WOULD ENCOURAGE BUSINESSES TO BUY EQUIPMENT BEFORE THE END OF NEXT YEAR THEY CONTEND THAT OTHER TAX BREAKS MIGHT NOT HAVE THE SAME EFFECT SOME REPUBLICANS MEANWHILE ARE TALKING ABOUT USING THE MONEY SO THAT CONGRESS DOESN'T HAVE TO ACCEPT MR CLINTON'S PLAN TO RAISE 32 BILLION BY INCREASING TAXES ON SOCIAL SECURITY BENEFITS PAID TO THE WEALTHIEST 20 OF THE ELDERLY THAT'S AN APPROACH MR MOYNIHAN MAY FIND ATTRACTIVE REPUBLICANS RELISH THE PROSPECT OF A PARTISAN BATTLE THAT HAS MR ROSTENKOWSKI AND OTHER DEMOCRATS SIDING WITH BUSINESS WHILE THEY DEFEND SOCIAL SECURITY RECIPIENTS MR MOYNIHAN WHO IS UP FOR REELECTION IN 1994 MAY NOT BE AS EAGER AS IS MR ROSTENKOWSKI TO SIDE WITH CORPORATE INTERESTS MEANWHILE DEMOCRATS AND REPUBLICANS CONTINUE TO FENCE OVER MR CLINTON'S PROPOSAL TO AUTHORIZE AN ADDITIONAL 163 BILLION IN DEFICIT SPENDING FOR PROGRAMS THAT THE ADMINISTRATION BELIEVES WOULD CREATE JOBS RAPIDLY IN THE SENATE IT TAKES ONLY 41 VOTES TO PREVENT A MEASURE FROM COMING UP FOR A VOTE REPUBLICANS HAVE 43 VOTES AND HAVE BLOCKED THE BILL MR MITCHELL SAID YESTERDAY THAT HE WAS STILL WAITING FOR SENATE REPUBLICAN LEADER BOB DOLE OF KANSAS TO OFFER A SCALEDBACK ALTERNATIVE IN AN INTERVIEW YESTERDAY ON CBSTV'S FACE THE NATION SEN DOLE SAID HE IS AVERTING A BIDDING WAR INSTEAD HE SUGGESTED A BIPARTISAN COMPROMISE OUT OF 43 REPUBLICANS HE SAID NOT VERY MANY WANT TO DO ANYTHING EXCEPT THE UNEMPLOYMENT PIECE A REFERENCE TO A 4 BILLION APPROPRIATION TO FUND JOBLESS BENEFITS BUT HOUSE SPEAKER FOLEY SAID MANY HOUSE DEMOCRATS WILL RESIST ANY SCALE BACK OF THE PLAN ON CNN'S EVANS AND NOVAK HE CONCEDED WHAT THE SENATE CAN PASS WILL PROBABLY DEFINE THE LEVEL OF THE STIMULUS PACKAGE MR BENTSEN REITERATED THE ADMINISTRATION'S WAR CRY ACCUSING THE REPUBLICANS OF FOSTERING GRIDLOCK HE SAID THE STIMULUS IS NEEDED BECAUSE NASCENT ECONOMIC RECOVERY STILL ISN'T CREATING ENOUGH JOBS 9304120070 930412 MANAGER'S JOURNAL ABOUT THOSE TEAM BUILDING RETREATS BY MARCY MASON IN FEBRUARY 1992 MANAGERS AT SILHOUETTE OPTICAL A NORTHVALE NJ EYEWEAR MANUFACTURER WERE SUFFERING FROM AN ACUTE CASE OF THE BOYS' CLUB SYNDROME AS A REMEDY THE EXECUTIVES PACKED UP THEIR PROBLEMS AND TOOK A RETREAT BILLED AS A TEAMBUILDING SESSION THIS CAREFULLY CRAFTED NOT TO MENTION COSTLY JAUNT IN THE WOODS WAS MEANT TO PROD PARTICIPANTS INTO UNLEASHING EMOTIONAL INTIMACIES TO RESOLVE GROUP CONFLICT DO SUCH TECHNIQUES WORK THE MULTITUDE OF COMPANIES INVESTING IN THESE OFFCAMPUS CORPORATE BONDING SESSIONS CERTAINLY HOPE SO HOWEVER THERE ARE SERIOUS CONCERNS ABOUT WHETHER THE INTERACTIVE SKILLS HONED ON A WILDERNESS RETREAT ARE TRANSFERABLE TO THE OFFICE IF ANY LONGTERM GAIN WAS DERIVED FROM SILHOUETTE'S TWO TRIPS TO A NEW YORK MOUNTAIN HOUSE RESORT FEW OF THE MANAGERS HAVE NOTICED IT IN FACT ONE OF THE FEMALE TEAMMATES A 10YEAR VETERAN OF THE COMPANY DECIDED TO CALL IT QUITS IN THE OFFICE EVERYBODY WAS ALWAYS DIGGING EACH OTHER BEHIND EACH OTHER'S BACKS THEN ALL OF A SUDDEN WE WERE SUPPOSED TO BE A TEAM IT WAS TOTAL HYPOCRISY IT WAS THE STRAW THAT BROKE THE CAMEL'S BACK THAT TOLD ME I HAD TO LEAVE SHE SAYS THE SURVIVORS WERE EQUALLY DISAPPOINTED I DON'T BELIEVE THAT THESE TYPES OF EXERCISES CAN SUCCESSFULLY FIX DEEPROOTED PROBLEMS EXISTING WITHIN A GROUP SAYS WILLI HUBER SILHOUETTE'S VICE PRESIDENT OF FINANCE A TEAM CANNOT BE BUILT AS IF YOU WERE USING A SET OF LEGOS EXPLAINS MR HUBER WHO ESTIMATES THE COST OF THE COMPANY'S EXCURSIONS AT 10000 A TEAM HAS TO EVOLVE OUT OF MUTUAL TRUST AND THAT DOESN'T HAPPEN OVERNIGHT OF COURSE IRONING OUT CONFLICT ISN'T THE ONLY IMPETUS FOR TEAMBUILDING RETREATS SOME COMPANIES ENGAGE IN THE ACTIVITY PURELY AS A TOOL TO RALLY THE TROOPS BUT DECIPHERING THE LASTING EFFECTS OF THE EXPERIENCE CAN BE DIFFICULT HOW DO YOU MEASURE SOMETHING LIKE THIS ASKS JIM MARSON REFERRING TO A TEAMBUILDING RETREAT HE AND OTHER CREATIVES FROM JOHN RYAN CO A RETAIL MARKETING AGENCY IN MINNEAPOLIS ATTENDED TWO YEARS AGO IT WOULD BE ONE THING IF THERE WAS INFIGHTING AND PEOPLE WEREN'T GETTING ALONG BUT THERE WASN'T ANY SUCH CONFLICT WITH US AND PERSONALLY I THINK IT WAS MUCH ADO ABOUT NOTHING BUT WHAT IF EVERYBODY DOESN'T FEEL SAFE MARK JOHNSON AN INVESTIGATIVE ANALYST AT MD BUYLINE A MEDICAL EQUIPMENT INFORMATION FIRM IN DALLAS ADMITS HE HAD A FEW RESERVATIONS BEFORE EMBARKING ON A WEEKLONG CANOE ADVENTURE IN THE FLORIDA EVERGLADES THREE YEARS AGO THE COMPANY HAD STRONGLY ENCOURAGED ALL 50 OF ITS EMPLOYEES TO PARTAKE IN ONE OF FOUR SUCCESSIVE TRIPS I HAD NOT GROWN UP AS AN OUTDOORSORIENTED PERSON SO THERE WAS THAT CONCERN SAYS MR JOHNSON AND THERE WAS THE WHOLE IDEA OF STRIPPING YOU OF YOUR SUPPORT MECHANISMS BASICALLY YOUR THREEPIECE SUIT YOUR CORNER OFFICE AND YOUR WIFE STRESSING THE HELL OUT OF YOU PHYSICALLY AND THEN ASKING YOU EMOTIONAL QUESTIONS THAT WOULD CAUSE YOU TO OPEN UP AND REVEAL YOURSELF TO ONE ANOTHER FRANKLY I DIDN'T WANT TO OPEN UP AND BARE MY SOUL TO THESE PEOPLE THE TRIP CONFIRMED HIS WORST SUSPICIONS ON TWO OF THE EVENINGS AFTER PADDLING THE ENTIRE DAY THE GROUP LATCHED THEIR CANOES TOGETHER AND CREATED A LARGE SQUARE RAFT WE COOKED ON IT CHANGED ON IT TALKED ON IT ATE ON IT AND IF YOU HAD TO GO TO THE WASHROOM YOU WENT OVER TO ONE CORNER AND YES THIS WAS A MIXED GROUP HE EXPLAINS NO DOUBT ABOUT IT MR JOHNSON INSISTS THAT HE AND SEVERAL OF HIS COWORKERS WERE CHANGED BY THEIR RETREAT THERE WERE SOME PEOPLE THAT TOOK A GOOD LONG LOOK AT THEIR PERSONAL AND CAREER GOALS AS A RESULT OF THAT EXPERIENCE AND DECIDED THIS ISN'T IT' SO THEY LEFT THE COMPANY AND THESE WERE PEOPLE WITH SKILLS WE REALLY DIDN'T WANT TO LOSE THE COST OF TEAMBUILDING RETREATS ISN'T CHEAP ACCORDING TO PEG HOWELL OUTWARD BOUND'S NATIONAL SALES DIRECTOR A TYPICAL FOURDAY PROGRAM RUNS 1200 PER PERSON EXCLUDING TRANSPORTATION TO THE COURSE BEHAVIORAL THERAPIST JACQUELINE REID FOUNDER OF REID & ASSOCIATES IN TAOS NM NOTES THAT A THREEDAY GROUP SESSION RANGES BETWEEN 2000 AND 30000 MORE DRAMATIC PROGRAMS OF AN ADVENTUROUS NATURE COST MORE FAR MORE THAN ANY COMPANY SHOULD BE SPENDING ON ACTIVITIES THAT DON'T CONTRIBUTE TO THE BOTTOM LINE WHAT WE'RE FINDING SAYS MR HIBBS IS THAT FOR THE TIME INVESTED THE LEVEL OF INTENSITY AND THE COMMITMENT IT TAKES OUT OF PEOPLE WE'RE GETTING MORE IMMEDIATE AND LONGTERM BENEFITS OUT OF DEVELOPING BETTER MANAGEMENT STRUCTURES AND BETTER INTERACTION IN THE OFFICERATHER THAN DEVELOPING THE INDIVIDUAL PERSON WHICH IS WHAT THESE OUTSIDE EXPERIENCES ARE INTENDED TO DO AND CAN A SOLID TEAM BE BUILT UNDER CIRCUMSTANCES THAT BEAR NO RESEMBLANCE TO THE COMPANY'S DAILY LIFE JAMES BENNETT MANAGING DIRECTOR OF MCKINSEY & CO'S CLEVELAND AND PITTSBURGH OFFICES DOESN'T THINK SO TEAMS IN ORGANIZATIONS HAVE ALL KINDS OF UNFINISHED BUSINESS AND BURNING ISSUES THAT NEED TO BE RESOLVED AND THEY DO BETTER WHEN THEY FOCUS ON THE REAL WORK THEY HAVE TO DO I WOULD NOT BE VERY COMFORTABLE SUGGESTING TO ANY OF MY CLIENTS THAT THEY GO AWAY ON A TOTALLY NONWORKRELATED EXPERIENCE SAYS MR BENNETT SOME CORPORATE MANAGERS MIGHT DISAGREE BUT THEN IT'S BEEN SAID THAT A ROUSING GAME OF SOFTBALL CAN WORK WONDERS FOR MOTIVATING A TEAM TOO AND IT COSTS A LOT LESS MS MASON IS A WRITER LIVING IN CHICAGO 9304120069 930412 LETTERS TO THE EDITOR WAR FOR WOMEN'S BODIES REGARDING YOUR MARCH 12 ARTICLE MEDICAL SCHOOLS STUDENTS SHUN ABORTION STUDY IT SHOULD BE NOTED THAT THE SAME TYPE OF PEOPLE WHO FEEL THEY HAVE THE RIGHT TO STAND IN JUDGMENT WHEN A WOMAN IS PREGNANT ARE ALSO DESPERATELY FIGHTING SEX EDUCATION AND BIRTH CONTROL PROGRAMS THEREFORE IT IS REALLY MORE APPROPRIATE TO LABEL THIS GROUP ANTICHOICE AND NOT ANTIABORTION IS IT REALLY THE FETUS THEY ARE SO CONCERNED ABOUT OR IS IT MORE A MATTER OF CONTROLLING WOMEN'S BODIES AND CONSEQUENTLY WOMEN'S INDEPENDENT PARTICIPATION IN THIS SOCIETY AND NOW IN LIGHT OF THE MURDER OF DR DAVID GUNN IN FLORIDA MAYBE THE MOTTO OF THIS GROUP SHOULD BE PROLIFE OR DIE 9304120068 930412 YOUR MONEY MATTERS NEW DERIVATIVE PRODUCTS ARE SURPRISINGLY COMPLEX BY BARBARA DONNELLY GRANITO STAFF REPORTER OF THE WALL STREET JOURNAL CAUGHT BETWEEN THE FEAR OF A RISKY STOCK MARKET AND A LOATHING OF LOW RATES ON YOUR CERTIFICATES OF DEPOSIT THE FOLKS AT YOUR FRIENDLY FINANCIAL SERVICES FIRM WANT TO HELP YOU OUT OF YOUR DILEMMA SOME OF THE HOTTEST PRODUCTS AT BANKS AND BROKERAGE FIRMS THESE DAYS ARE HIGHTECH DERIVATIVE INVESTMENTS THAT ARE DESIGNED TO SOFTEN THE RISK OF OWNING STOCKS SOME COME IN THE FORM OF FEDERALLY INSURED CDS OTHERS IN THE FORM OF SECURITIES THAT TRADE LIKE STOCKS AND BONDS ALL OF THEM USE THE SAME BASIC APPROACH TO TAKE AIM DIRECTLY AT SMALL INVESTORS THEY LET YOU PARTICIPATE IN THE PRICE GAINS OF A STOCK MARKET INDEX USUALLY THE STANDARD & POOR'S 500 INDEX WITH ZERO RISK OF LOSING PRINCIPAL AT MATURITY BUT WHILE THAT SOUNDS LIKE JUST THE TICKET FOR WARY INVESTORS AT TIMES LIKE THESE TAKE A CLOSER LOOK BEFORE YOU WRITE THE CHECK THESE PRODUCTS ARE SOMETIMES MUCH MORE COMPLEX THAN THEY APPEAR AND YOU MAY BE ABLE TO REACH THE SAME OBJECTIVES USING MORE CONVENTIONAL INVESTMENTS LIKE PLAIN OLD STOCKS AND BONDS AMONG THE PROVIDERS CITIBANK HAS BEEN RUNNING A MEDIA BLITZ TO TRUMPET ITS NEW STOCK INDEX INSURED ACCOUNT AN INDEXLINKED CD REPUBLIC NEW YORK CORP JUST UNVEILED A SIMILAR PRODUCT WHILE BANKERS TRUST HAS A SLIGHTLY DIFFERENT INDEXLINKED CD THE 100PLUS MARKET LINKED DEPOSIT THAT IT MARKETS THROUGH REGIONAL BROKERS AND ITS OWN PRIVATE BANK MEANWHILE MERRILL LYNCH'S MARKET INDEX TARGETTERM SECURITIES RESEMBLE BANKERS TRUST'S PRODUCT BUT ARE TRADED SECURITIES RATHER THAN BANK CDS THE RECENT MARKETING FRENZY IS AIMED AT GARNERING MONEY FROM INVESTORS BEFORE THE APRIL 15 DEADLINE FOR 1992 CONTRIBUTIONS TO INDIVIDUAL RETIREMENT ACCOUNTS AND SIMILAR TAXDEFERRED PLANS BECAUSE OF THEIR TAX COMPLEXITIES THESE PRODUCTS GENERALLY AREN'T APPROPRIATE FOR TAXABLE ACCOUNTS THESE INVESTMENTS ARE SOCALLED DERIVATIVES PRODUCTS PUT TOGETHER WITH FINANCIAL AND MATHEMATICAL ALCHEMY THAT ALLOWS THEM TO PAY RETURNS THAT TRACK OTHER MORE CONVENTIONAL INVESTMENTS IT'S ALL PART OF DERIVATIVES HITTING THE MAINSTREAM AND MAIN STREET SAYS BENJAMIN WEST MANAGING DIRECTOR AT CREDIT SUISSE FINANCIAL PRODUCTS ONE OF THE FEW DERIVATIVES FIRMS THAT ISN'T YET PITCHING SUCH INVESTMENTS TO SMALL INVESTORS WHAT THESE HOT NEW INVESTMENTS DO IS PACKAGE STOCKINDEX OPTIONS IN A WAY THAT IS PALATABLE TO UNSOPHISTICATED INVESTORS OPTIONS ARE DERIVATIVES THAT GIVE INVESTORS THE RIGHT BUT NOT THE OBLIGATION TO RECEIVE THE RETURN GENERATED BY SOME UNDERLYING INVESTMENT IN THIS CASE THE S&P 500 INDEX OVER A SPECIFIC PERIOD SELLING OPTIONS TO CD INVESTORS IT MAY SOUND RACY BUT IT ISN'T NECESSARILY ESPECIALLY WHEN THE OPTIONS ARE PACKAGED IN A WAY THAT HEDGES STOCKMARKET RISK AS THEY ARE HERE BUT THERE ARE SOME CAVEATS TO START WITH THE SAME GENERAL OBJECTIVES OFTEN CAN BE ACHIEVED WITH GREATER FLEXIBILITY AND POTENTIALLY BETTER RETURN BY MIXING STOCKS AND BONDS SAY THROUGH NOLOAD MUTUAL FUNDS STOCKS RARELY LOSE MONEY IN A FIVEYEAR PERIOD TO BEGIN WITH BUT TO BE CONSERVATIVE YOU COULD KEEP ONLY 60 OF YOUR MONEY IN A STOCKINDEX MUTUAL FUND AND 40 IN A BOND FUND REBALANCING ONCE A YEAR AT TODAY'S FIVEYEAR BOND RATE OF ROUGHLY 53 AND A DIVIDEND RATE OF 3 THAT WOULD GIVE YOU A FIVEYEAR RETURN OF ROUGHLY 21 TO BUFFER YOU FROM MARKET MOVES WHAT'S MORE IF THE MARKET DID GO SOUR YOU WOULD HAVE ONLY 60 OF YOUR MONEY AT RISK NOT 100 THIS APPROACH ACCORDING TO IBBOTSON ASSOCIATES INC WOULD HAVE LOST MONEY IN ONLY FIVE FIVEYEAR PERIODS SINCE THE 1920S FOUR DURING THE GREAT DEPRESSION AND IN 1937'41 COMPARE THAT APPROACH WITH AN OPTION PRODUCT LIKE BANKERS TRUST'S INDEXLINKED CD AS WITH THE OTHER SIMILAR PRODUCTS ITS RETURNS ARE EQUAL TO THE PERCENTAGE INCREASE IN THE INDEX'S PRICE ONLY DIVIDENDS AREN'T INCLUDED WHAT'S MORE YOU AREN'T ENTITLED TO ANY INTEREST ON THIS INDEX CD WHAT YOU GET INSTEAD IS IMMUNITY FROM LOSSES IF THE MARKET GOES DOWN THIS AND OTHER INDEX CDS ALSO HAVE FEDERAL DEPOSIT INSURANCE THE BOTTOM LINE ASSUMING A FIVEYEAR TERM A MIX OF 60 STOCKS AND 40 BONDS WOULD OUTPERFORM BANKERS TRUST'S APPROACH AS LONG AS THE STOCK MARKET DIDN'T RISE 52 OR MORE OR FALL 35 OR MORE OPTION PRODUCTS HAVE A PLACE FOR THE TYPE OF INVESTOR FOR WHOM ANY LOSS OF PRINCIPAL IS ABSOLUTELY UNACCEPTABLE SAYS LAURENCE B SIEGEL MANAGING DIRECTOR AT IBBOTSON I'M NOT ESPECIALLY ENTHUSIASTIC ABOUT THESE PRODUCTS BECAUSE THE OPTIONS ARE EXPENSIVE AND MOST PEOPLE DO HAVE MORE TOLERANCE FOR LOSS THAN THEY REALIZE MOREOVER THESE OPTION PRODUCTS AREN'T ALWAYS AS CLEARCUT AS THEY SEEM TAKE THE CASE OF CITIBANK'S FIVEYEAR INDEX CD A VARIETY OF DIFFERENT DERIVATIVES EXPERTS CONCLUDE THAT IT'S ACTUALLY NOT A BAD DEAL IN TECHNICAL OPTIONPRICING TERMS IT GIVES SOMEWHAT BETTER VALUE TO INVESTORS THAN BANKERS TRUST'S CD AND MOST OTHER INDEXOPTION PRODUCTS BEING SOLD TODAY THE PROS AGREE BUT DIRECT COMPARISON ISN'T SO EASY THE OPTIONS EMBEDDED IN CITI'S CD AND REPUBLIC NEW YORK'S CD TOO IT TURNS OUT ARE RELATIVELY EXOTIC ANIMALS KNOWN AS ASIAN OPTIONS TRANSLATION RETURNS ARE BASED NOT ON THE ENDING PRICE BUT ON THE AVERAGE PRICE OVER THE OPTION'S LIFE ACTUALLY CITI'S CD WHICH PROMISES TO GIVE YOU TWO TIMES THE AVERAGE PERCENTAGE INCREASE OF THE INDEX GIVES YOU TWO SUCH ASIAN OPTIONS TWO TIMES THE AVERAGE PRICE INCREASE IS IN ROUGH TERMS EQUAL TO THE FULL PRICE INCREASE OVER FIVE YEARS WHAT THIS MEANS IS THAT YOU CAN KNOW THE BEGINNING AND ENDING PRICE OF THE INDEX AND STILL NOT HAVE ANY IDEA WHAT YOUR RETURN IS YOU HAVE TO KNOW WHAT PATH PRICES TOOK OVER THE FIVE YEARS FIGURING THE AVERAGE PRICE IS A LOT LIKE FIGURING A CUMULATIVE GRADEPOINT AVERAGE IN COLLEGE AT THE BEGINNING OF FRESHMAN YEAR EACH NEW GRADE HAS A BIG IMPACT ON YOUR CUMULATIVE AVERAGE BUT BY YOUR LAST TERM THE AVERAGE WON'T CHANGE VERY MUCH NO MATTER HOW WELL OR POORLY YOU DO CITI'S CD IS BASED NOT ON GRADE POINTS OF COURSE BUT THE MONTHEND PRICES OF THE S&P 500 INDEX BUT WHEN IT COMES TO INVESTMENT RETURNS THIS TYPE OF AVERAGEPRICE OPTION PRODUCES SOME PRETTY QUIRKY RESULTS IN CITI'S CASE FOR INSTANCE THE PERCENTAGE GAIN OR LOSS IN THE FIRST MONTH IS WEIGHTED 60 TIMES AS HEAVILY AS THE GAIN OR LOSS IN THE LAST MONTH THAT MEANS THESE OPTIONS LEAVE YOU VERY EXPOSED TO NEARTERM MOVES IN THE MARKET AND VERY UNDEREXPOSED TO CHANGES IN THE MARKET PRICE AT THE END WHY WOULD YOU WANT TO PUT 60 TIMES AS MANY EGGS IN TODAY'S BASKET AS YOU DO IN THE S&P 500 BASKET OF 1998 ASKS BARRY NALEBUFF ECONOMICS PROFESSOR AT THE YALE SCHOOL OF ORGANIZATION AND MANAGEMENT TO BE SURE THIS TYPE OF INDEX CD IS LIKELY TO BE A BETTER PERFORMER IN FIVEYEAR PERIODS WHERE THE MARKET TAKES OFF AT THE START AND THEN LEVELS OFF OR FALLS RETURNS ALSO WON'T BE HURT VERY MUCH BY A WEAK MARKET JUST BEFORE YOUR CD MATURES HOWEVER THE REVERSE IS ALSO TRUE WHICH ISN'T ALWAYS CLEAR IN CITI'S PROMOTIONS NOT ONLY DO YOU STAND TO BE HURT MUCH MORE IF THE MARKET IS WEAK IN THE NEAR TERM BUT YOU'LL BY SORRY TOO IF THE MARKET RALLIES STRONGLY LATE IN THE PERIODBECAUSE BY THAT TIME THIS OPTION WILL HAVE LOST ALL OF ITS OOMPH DIFFERENT WAYS OF HEDGING MARKET RISK INVOLVE VARIOUS TRADEOFFS SAYS SUSAN BLOCH TREASURER OF CITI'S NEW YORK CONSUMER BANK BUT IN WEIGHING THESE TRADEOFFS THROUGH FOCUS GROUPS AND DISCUSSIONS WITH CONSUMERS WE DETERMINED THIS APPROACH BEST MEETS THE CUSTOMER'S EXPECTATIONS IN TERMS OF RISK TOLERANCE AND RETURN STILL NOT EVERYONE IS HAPPY WITH THE WAY CITI HAS COMMUNICATED THOSE TRADEOFFS I WAS REALLY UPSET BY HOW THEY'RE MARKETING THIS SAYS MICHAEL EDLESON AN ASSISTANT PROFESSOR AT HARVARD BUSINESS SCHOOL EVEN WHEN PRESSED ON THE PHONE BY MR EDLESON CITI DIDN'T COME CLEAN ON HOW THIS WORKS FOR QUITE A WHILE HE SAYS 9304120067 930412 WHO'S NEWS REV BENJAMIN CHAVIS WILL SUCCEED HOOKS AS HEAD OF NAACP ATLANTA AP THE REV BENJAMIN CHAVIS A CIVIL RIGHTS CRUSADER WHO SERVED FOUR YEARS IN PRISON FOR A CONTROVERSIAL FIREBOMBING HAS BEEN CHOSEN TO HEAD THE NAACP REV CHAVIS 45 REPLACES BENJAMIN HOOKS WHO IS RETIRING AFTER 16 YEARS AT THE HELM OF THE NATION'S OLDEST CIVIL RIGHTS ORGANIZATION REV CHAVIS NOW IS EXECUTIVE DIRECTOR OF THE COMMISSION FOR RACIAL JUSTICE UNITED CHURCH OF CHRIST IN RECENT YEARS HE PIONEERED THE ENVIRONMENTAL RACISM MOVEMENT WHICH HOLDS THAT TOXIC MATERIALS ARE STORED DISPROPORTIONATELY IN AND NEAR BLACK COMMUNITIES HE WAS SELECTED FRIDAY AFTER A YEARLONG SEARCH THAT GENERATED MUCH DISCUSSION ABOUT THE FUTURE OF THE 500000MEMBER NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE THE REV JESSE JACKSON HAD BEEN A FINALIST BUT WITHDREW CITING A PROPOSAL THAT WOULD GIVE THE NAACP BOARD GREATER CONTROL OVER DAILY OPERATIONS THREE BOARD MEMBERS ISSUED A SCATHING RESPONSE ARGUING THAT HE DROPPED OUT BECAUSE HE FEARED HE WOULD NOT BE CHOSEN TO LEAD THE 84YEAROLD CIVIL RIGHTS ORGANIZATION THE STATEMENT NOTED THAT SOME BOARD MEMBERS WERE WORRIED ABOUT REV JACKSON'S IMAGE AS A MAVERICK REV CHAVIS WAS IN PRISON FROM 197680 FOR THE FIREBOMBING OF A STORE IN WILMINGTON NC AMNESTY INTERNATIONAL DECLARED CHAVIS AND OTHER MEMBERS OF THE SOCALLED WILMINGTON 10 POLITICAL PRISONERS AND THEIR CONVICTIONS WERE REVERSED IN 1984 HE WAS CLERGY COORDINATOR FOR REV JACKSON'S PRESIDENTIAL CAMPAIGN 9304120066 930412 LEISURE & ARTS BOOKSHELF THE FAMOUS LAWYER ON TRIAL HIMSELF BY PAUL M BARRETT IN THE SUMMER OF 1912 CLARENCE DARROW TOLD THE JURY IN A LOS ANGELES BRIBERY CASE THAT IT WAS THE PROSECUTORS NOT THE DEFENDANT WHO SHOULD BE ON TRIAL THE GREAT COURTROOM ORATOR RAILED AGAINST A CONSPIRACY OF POWER AND WEALTH AIMED AT CRUSHING WORKERS AND THE POOR OH YOU WILD INSANE MEMBERS OF THE STEEL TRUST AND ERECTORS ASSOCIATION HE EXCLAIMED OH YOU MAD HOUNDS OF DETECTIVES WHO ARE WILLING TO DO YOUR MASTERS' WILL OH YOU DISTRICT ATTORNEYS YOU KNOW NOT WHAT YOU DO THE SPEECH HAD ITS DESIRED EFFECT THE LOS ANGELES HERALD REPORTED THAT TEARS FROM THE JURORS' EYES BEGAN TO TRICKLE DOWN THEIR WORN AND CARELADEN FACES DARROW'S MOST FAMOUS CASES CAME IN LATER YEARS WHEN HE DEFENDED AMONG OTHERS JOHN SCOPES THE TENNESSEE TEACHER PROSECUTED FOR TELLING HIS STUDENTS ABOUT DARWIN'S THEORY OF EVOLUTION BUT BY 1912 DARROW HAD ALREADY ESTABLISHED HIMSELF AS LABOR'S LEADING ATTORNEY THE LOS ANGELES BRIBERY TRIAL ALTHOUGH RARELY REMEMBERED MAY HAVE BEEN HIS MOST STIRRING PERFORMANCE CERTAINLY IT WAS HIS MOST TRAUMATIC FOR THE MAN IN DANGER OF BEING SENT TO SAN QUENTIN WAS CLARENCE DARROW HIMSELF IN THE PEOPLE V CLARENCE DARROW TIMES BOOKS 546 PAGES 2750 GEOFFREY COWAN GIVES THE CASE THE ATTENTION IT DESERVES A LAWYER AND WRITER MR COWAN OBSERVES THAT STANDARD BIOGRAPHICAL TREATMENTS OF DARROW TEND TO SUGARCOAT THE BRIBERY TRIAL THE AUTHOR APPROACHES HIS TASK NOT AS A SMUG REVISIONIST HE IS AN UNABASHED DARROW FAN RATHER MR COWAN ASSERTS THAT TO UNDERSTAND THE LEGAL TITAN ONE MUST APPRECIATE HIS DARKER SIDE THE DARROW PROSECUTION GREW OUT OF HIS REPRESENTATION OF JAMES AND JJ MCNAMARA UNION OPERATIVES INVOLVED IN THE DYNAMITING OF THE LOS ANGELES TIMES BUILDING IN 1911 THE MCNAMARAS WERE PART OF A TERROR CAMPAIGN BY THE BRIDGE AND STRUCTURAL IRON WORKERS WHO SOUGHT A BARGAINING EDGE BY DESTROYING BUILDINGS AND BRIDGES OF THE SORT THAT THEY ORDINARILY HELPED PUT UP ALTHOUGH THE LA TIMES BOMBING KILLED 21 PEOPLE LABOR LEADERS MADE THE MCNAMARAS INTO HEROES WORKING PEOPLE ACROSS THE COUNTRY CONTRIBUTED NICKELS AND DIMES TO PAY FOR THE BEST DEFENSE MONEY COULD BUY AND THAT MEANT CLARENCE DARROW MR COWAN BEGINS WITH HIS SUBJECT'S INCONSISTENCIES BEFORE MOVING ON TO MORE SERIOUS FLAWS WHILE DEVOTED TO THE LESS FORTUNATE DARROW WAS ALSO GREEDY HE TOOK THE MCNAMARA CASE IN LARGE PART FOR THE 50000 FEE THAT BIG LABOR PROMISED HIM HE FANCIED HIMSELF AN AFFLICTOR OF THE CAPITALIST RULING CLASS BUT SERVED RAPACIOUS CORPORATE MASTERS WHEN THE RATE WAS RIGHT FOR EXAMPLE HE DEFENDED LAWYERS WHO HAD BRIBED JURORS ON BEHALF OF A CHICAGO STREETCAR COMPANY WHOSE RIDERS REGULARLY WERE CRIPPLED IN ACCIDENTS DARROW INSISTED THAT THE FEES HE GOT FROM INDUSTRIALISTS WERE NECESSARY TO FINANCE HIS WORK FOR THE LEFT SOCIETY IS ORGANIZED INJUSTICE HE BLITHELY DECLARED BUSINESS IS A LEGAL FRAUD HE WOULD EGG ON BOTH SIDES IN THE CLASS STRUGGLE AND THEREBY HELP DESTROY THE SYSTEM FRIENDS WORRIED THAT BY THE TIME THE FAMOUS LAWYER ACCEPTED THE MCNAMARA CASE HE HAD BECOME SO MORALLY OBTUSE THAT HE WOULDN'T HESITATE TO BRIBE JURORS HIMSELF SURE ENOUGH SUCH AN ATTEMPT WAS MADE ALTHOUGH DARROW'S PRECISE ROLE WAS AMBIGUOUS JUST BEFORE IT APPEARED THAT THE CHICANERY WOULD BECOME PUBLIC HE SWITCHED THE MCNAMARAS' PLEA TO GUILTY AND THEY WERE BOTH SENTENCED TO LONG PRISON TERMS MR COWAN PROVIDES A DETAILED AND FAIRMINDED ACCOUNT OF THESE COMPLICATED EVENTS HE RELUCTANTLY CONCLUDES THAT DARROW DID BRIBE TWO JURORS AND THEN PLEADED HIS CLIENTS GUILTY IN HOPES OF DEFLECTING HIS OWN PROSECUTION SINCE HE COLLECTED HIS FEE UP FRONT THERE WAS ALSO AN ECONOMIC INCENTIVE AS THE AUTHOR DELICATELY PUTS IT TO END THE CASE QUICKLY STILL HE MAY HAVE SAVED HIS CLIENTS' NECKS BY STRIKING A DEAL WHATEVER THE MIX OF REASONS FOR THE MCNAMARA PLEA DARROW NEXT HAD TO WORRY ABOUT HIS OWN FATE BECAUSE PROSECUTORS PUT HIM ON TRIAL FOR JURY TAMPERING FACING 30 YEARS BEHIND BARS HE ORCHESTRATED A MASTERFUL DEFENSE THAT INCLUDED ALLEGATIONS OF A GOVERNMENT FRAMEUP AND A SUGGESTION THAT HE WOULDN'T HAVE BRIBED JURORS IF HE HAD BEEN PLANNING TO HAVE HIS CLIENTS PLEAD GUILTY IN THE END IT MAY HAVE BEEN THE DEFENDANT'S SHEER RHETORICAL FORCE THAT CARRIED THE DAY HE APPEARED AT TIMES TO ARGUE THAT EVEN IF HE WERE GUILTY HIS TRANSGRESSIONS HAD TO BE VIEWED AGAINST THE BACKDROP OF LABOR'S FIGHT FOR DIGNITY SUPPOSE I AM GUILTY OF BRIBERY HE SAID IS THAT WHY I AM PROSECUTED IN THIS COURT IS THAT WHY BY THE MOST INFAMOUS METHODS KNOWN TO THE LAW THESE MEN THE REAL ENEMIES OF SOCIETY ARE TRYING TO GET ME INSIDE THE PENITENTIARY THE JURY DELIBERATED FOR 40 MINUTES BEFORE IT ANNOUNCED THE ACQUITTAL DARROW WENT ON TO BECOME A POWERFUL CRITIC OF THE DEATH PENALTY OF RELIGIOUS ORTHODOXY AND OF RACIAL DISCRIMINATION BUT AFTER 1912 ORGANIZED LABOR TOOK ITS LEGAL BUSINESS ELSEWHERE MR BARRETT COVERS THE SUPREME COURT FOR THE JOURNAL 9304120065 930412 BUSINESS BRIEF UGI CORP SEC CLEARS FIRM'S STATEMENT RELATED TO BUYING QFB UNIT QFB PARTNERS AND UGI CORP SAID THE SECURITIES AND EXCHANGE COMMISSION DECLARED EFFECTIVE A REGISTRATION STATEMENT RELATED TO THE RESTRUCTURING OF A QFB UNIT AND ITS SALE TO UGI THE STATEMENT CONCERNS THE OFFERING OF VARIOUS SECURITIES TO HOLDERS OF 1325 SENIOR SUBORDINATED DEBENTURES ISSUED BY PETROLANE A QFB UNIT THAT DISTRIBUTES PROPANE GAS THE STATEMENT FILED JOINTLY BY PETROLANE UGI AND ITS PROPANEGAS DISTRIBUTION UNIT AMERIGAS INC ALSO SERVES TO SOLICIT ACCEPTANCE OF A PREPACKAGED PLAN OF REORGANIZATION OF PETROLANE UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE AS PREVIOUSLY REPORTED THE SALE OF PETROLANE TO UGI IN VALLEY FORGE PA IS TO BE ACCOMPLISHED THROUGH A PREPACKAGED REORGANIZATION PLAN AFTER WHICH THE DEBENTURE HOLDERS AND AMERIGAS WOULD BECOME PETROLANE'S NEW OWNERS UGI SAID IT EXPECTS THE DEAL TO BE COMPLETED BY JULY 9304120064 930412 BUSINESS BRIEF MNX INC JUDGMENT OF 64 MILLION AWARDED TO UNIT IS SET ASIDE MNX INC ST JOSEPH MO SAID A MISSOURI COURT SET ASIDE A 64 MILLION JUDGMENT AWARDED TO THE COMPANY'S TRUCKLOAD SUBSIDIARY AND ORDERED A NEW TRIAL AFTER IT WAS LEARNED THAT A JUROR IN THE TRIAL HAD FAILED TO DISCLOSE HIS INVOLVEMENT IN SEVERAL UNRELATED LAWSUITS THE COMPANY EXPECTS THE CASE TO BE RETRIED THIS FALL THE MISSOURINEBRASKA EXPRESS INC UNIT HAD SUED TRUCK MAKER NAVISTAR INTERNATIONAL TRANSPORTATION CORP AND A LOCAL DEALER ALLEGING BREACH OF CONTRACT AND FRAUDULENT MISREPRESENTATIONS REGARDING GUARANTEED TRADEIN PRICES ON HUNDREDS OF TRACTORS MNX HAD PURCHASED THIS YEAR A STATE JURY IN BUCHANAN COUNTY ASSESSED TOTAL DAMAGES OF 64 MILLION FROM NAVISTAR AND 72000 FROM THE DEALER MNX SAID THE DEALER HAD EARLIER WITHDRAWN ITS POSTTRIAL MOTIONS AND ISN'T EXPECTED TO APPEAL DESPITE THE COURT'S LATEST RULING ON NAVISTAR'S APPEAL NAVISTAR INTERNATIONAL TRANSPORTATION IS A UNIT OF NAVISTAR INTERNATIONAL CORP 9304120063 930412 BUSINESS BRIEF JACOR COMMUNICATIONS INC RIGHTS OFFERING FOR HOLDERS IS SET FOLLOWING REFINANCING JACOR COMMUNICATIONS INC CINCINNATI SAID IT WILL OFFER RIGHTS TO PURCHASE COMMON SHARES TO ALL SHAREHOLDERS OTHER THAN ZELL/CHILLMARK FUND LP THE RIGHTS OFFERING FOLLOWS A REFINANCING OF SENIOR BANK DEBT COMPLETED LAST MONTH IN WHICH JACOR ISSUED ABOUT 35 MILLION SHARES OF ITS NONVOTING CLASS B COMMON STOCK TO ZELL/CHILLMARK AN INVESTMENT FUND ALL SHAREHOLDERS BESIDES ZELL/CHILLMARK WILL HAVE THE NONTRANSFERABLE RIGHT TO PURCHASE AT 574 A SHARE ABOUT 042 COMMON SHARE FOR EACH SHARE THEY OWN AS OF MAY 7 ANY SHARES NOT PURCHASED UPON EXERCISE OF RIGHTS WILL BE MADE AVAILABLE TO ALL SHAREHOLDERS WHO EXERCISE THEIR RIGHTS IN FULL ZELL/CHILLMARK WILL PURCHASE ANY REMAINING SHARES REPRESENTED BY UNEXERCISED RIGHTS JACOR EXPECTS THE RIGHTS OFFERING TO BEGIN DURING THE SECOND QUARTER AND EXTEND UNTIL JULY 6 OR 20 DAYS AFTER THE OFFERING BEGINS WHICHEVER COMES FIRST THE RECORD DATE MAY BE CHANGED 9304120062 930412 UNEASY UNION TURNER'S FRUSTRATIONS RAISE ODDS OF A SPLIT WITH CABLE PARTNERS HE PINES FOR NEW VENTURES BUT TIME WARNER TCI HAVE IDEAS OF THEIR OWN BISON MEAT AND SOCIAL CAUSES BY DANIEL PEARL AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL ATLANTA TED TURNER'S YEAROLD MARRIAGE TO JANE FONDA SEEMS TO BE GOING SWIMMINGLY WHAT WITH THEIR COMMON INTERESTS IN SAVING THE WORLD GRAZING BISON AND DOING HOLLYWOOD HIS SIXYEAROLD CORPORATE MARRIAGE WITH A GROUP OF CABLETELEVISION OPERATORS HOWEVER IS ON THE ROCKS THE PROBLEM IRRECONCILABLE DIFFERENCES MR TURNER IS THE SWAGGERING BROADCASTER WHO CREATED TV'S FIRST SUPERSTATION AND ITS FIRST 24HOUR NEWS NETWORK THEY WERE CRUCIAL PARTS OF THE PROGRAMMING THAT POPULARIZED CABLE TV THAT MEDIUM IS LARGELY CONTROLLED NOW BY A FEW GIANT PLAYERS LIKE TELECOMMUNICATIONS INC AND TIME WARNER INC SO IS MR TURNER'S TELEVISION EMPIRE THE CABLE CONSORTIUM SAVED HIM FROM BEING BURIED BY DEBT IN EXCHANGE FOR VIRTUAL CONTROL OF THE BOARD AND A BIG STAKE IN TURNER BROADCASTING SYSTEM INC FOR A WHILE THE 54YEAROLD MR TURNER SEEMED CONTENT TO BE THE TITULAR HEAD OF THE COMPANY HE WOULD POP INTO THE OFFICE AT ATLANTA'S CNN CENTER TWO OR THREE DAYS EACH MONTH AND OTHERWISE LIVE WHAT SOME ARE CALLING THE JANE FONDA LIFESTYLE BUT RECENTLY HE HAS BEEN PRESSING FOR CHANGE HE HAS HELD TALKS WITH CAPITAL CITIES/ABC INC AND CBS INC HE RECENTLY MET WITH PARAMOUNT COMMUNICATIONS INC AND IS STILL IN TALKS WITH REPRESENTATIVES OF CREDIT LYONNAIS SA ABOUT ACQUIRING THE MGM STUDIO THAT HE SOLD AFTER BUYING MGM/UA ENTERTAINMENT CO IN 1986 BUT MR TURNER FOUND HE COULDN'T GET VERY FAR AS LONG AS TIME WARNER AND TCI WERE PARTNERS AFTER A MARCH 5 BOARD MEETING AT WHICH THE PARAMOUNT TALKS WERE DISCUSSED INFORMALLY MR TURNER MET PRIVATELY WITH TCI CHIEF EXECUTIVE JOHN MALONE AND TIME WARNER CEO GERALD LEVIN SEVERAL PEOPLE FAMILIAR WITH THE TALKS SAY HE WAS FRUSTRATED BUT HAD NO SPECIFIC PLAN ACCORDING TO ONE SOURCE WHO SAYS MR TURNER'S MESSAGE WAS IF HE COULDN'T ROAM FREE HE DIDN'T WANT TO PLAY THIS GAME ANYMORE TIME WARNER WHICH HAD ALREADY INDICATED IT WANTED TO TURN ITS TURNER STAKE INTO A CASHPRODUCING INVESTMENT ASSIGNED ODED ABOODI A LONGTIME COMPANY ADVISER TO BEGIN PUTTING TOGETHER A BREAKUP PROPOSAL ACCORDING TO ONE EXECUTIVE FAMILIAR WITH THE SITUATION NOW TIME WARNER WHICH HOLDS 19 PERCENT OF TURNER AND TCI WHICH HOLDS SLIGHTLY MORE ARE TALKING ABOUT HOW TO CARVE UP TURNER BROADCASTING AND GIVE MR TURNER HIS FREEDOM THE ULTIMATE OUTCOME IS UNCLEAR PEOPLE FAMILIAR WITH THE TALKS ESTIMATE THERE'S ONLY A 5050 CHANCE THE BREAKUP WILL HAPPEN AND SAY REGULATORY PROBLEMS MAY BLOCK A DEAL OR MR TURNER MAY GET COLD FEET WHAT IS CLEAR IS THE INTOLERABLE DYNAMIC THAT OCCURS WHEN A MERCURIAL ENTREPRENEUR GETS IN BED WITH CORPORATE POWERHOUSES THAT ARE SEPARATELY PURSUING SIMILAR STRATEGIC INTERESTS TURNER BROADCASTING TCI AND TIME WARNER ALL DECLINED TO COMMENT ON THE TALKS PARAMOUNT DECLINED TO COMMENT THOUGH PEOPLE FAMILIAR WITH THE SITUATION STRESSED CONVERSATIONS WITH MR TURNER WERE INFORMAL MGM REPRESENTATIVES ACKNOWLEDGED THE COMPANY HAS HAD ONAGAIN OFFAGAIN DISCUSSIONS WITH MR TURNER OVER THE LAST YEAR MR TURNER REACHED IN BOCA RATON FLA LAST WEEK DECLINED TO COMMENT ON THE VARIOUS DISCUSSIONS ON PAPER TURNER BROADCASTING HAS NEVER BEEN HEALTHIER ITS ATLANTA BRAVES HAVE BEEN IN THE WORLD SERIES FOR THE LAST TWO YEARS ITS NETWORKS HAVE BEEN EXPANDING OVERSEAS AND THE COMPANY REPORTED NET INCOME OF 776 MILLION FOR 1992 ON REVENUE OF 18 BILLION THE CABLE OPERATORS LIKE TO TAKE THE CREDIT TED TURNER MAKES 20 MILLION TO 25 MILLION MISTAKES AS PART OF THE ORDINARY COURSE OF BUSINESS SUCH AS OVERBIDDING FOR SPORTS RIGHTS SAYS ONE DIRECTOR IF ANYTHING THE BOARD HAS PROTECTED TED FROM HIMSELF FROM MR TURNER'S PERSPECTIVE THE BOARD HAS DONE HIM NO FAVORS IN CONSTRAINING HIM FROM WHAT SOME CONSIDER RASH ACTS HE BUILT THE COMPANY ON SUCH ACTS NOW THE MEDIA BUSINESS IS HURTLING FORWARD WHILE HE IS RELEGATED TO THE SIDELINES YOU HAVE INTERESTS ON THE BOARD THAT ARE CONFLICTING WITH HIS AND THEY HAVE TO BE RESOLVED BECAUSE HE'S FRUSTRATED AND CAN'T MOVE FORWARD SAYS A TURNER INSIDER INDEED THE EVENTS UNFOLDING AT TURNER ILLUSTRATE THE STRUGGLE AMONG MEDIA COMPANIES TO CREATE AND CONTROL PROGRAMMING ONE OF MR TURNER'S PROBLEMS WITH HIS TWO LARGEST SHAREHOLDERS IS THEIR RELATIONSHIP WITH EACH OTHER AN UNEASY ALLIANCE AT BEST TIME WARNER LIKE OTHER CABLE COMPANIES IS WARY OF THE LARGER TCI'S CLOUT IN DECIDING THE FATE OF PROGRAM SERVICES AND TCI WAS CONCERNED ENOUGH ABOUT THE DOMINANCE OF TIME WARNER'S HOME BOX OFFICE UNIT THAT IT SPONSORED THE STARTUP OF ANOTHER PAYTV SERVICE ENCORE WHILE NEW CABLE RULES HAVE LIMITED THE POWER OF SUCH GIANTS TO KEEP ASSETS LIKE TURNER'S CNN AND TNT EXCLUSIVELY FOR CABLE THEY ARE STILL ANXIOUS TO KEEP THEM OUT OF ENEMY HANDS AND OUT OF EACH OTHERS' GRIP AT THE SAME TIME TOO MR TURNER WHO HELPED SHAPE THIS PROGRAMMING REVOLUTION IS ANXIOUS TO EXPAND HIS PLATFORM FOR ORIGINAL PROGRAMMING BY BUYING A STUDIO OR JOINING WITH A NETWORK MR TURNER IN HIS WILDLY OPTIMISTIC WAY BELIEVES HE CAN GO OUT AND DO IT ALL OVER AGAIN SAYS ONE DIRECTOR IN 1987 THE CABLE OPERATORS LOOKED MORE LIKE MR TURNER'S SAVIORS THAN HIS CAPTORS HIS FAILED BID FOR CBS HAD LEFT EGG ON HIS FACE AND HIS SUCCESSFUL PURCHASE OF THE MGM LIBRARY HAD PUT HIM DEEPLY IN DEBT ALTHOUGH A LOT OF PEOPLE THOUGHT HE WAS RECKLESS THE CABLE OPERATORS AS HIS CUSTOMERS RECOGNIZED THAT HE WAS CABLETV'S MOST IMPORTANT AND PROMISING PROGRAMMING SOURCE THE NEW BOARD MEMBERS INCLUDING A REPRESENTATIVE OF CONTINENTAL CABLEVISION INC POURED IN MONEY AND HELPED MR TURNER START THE HUGELY SUCCESSFUL TNT NETWORK USING THE MGM LIBRARY THE BOARD WHICH ALSO NOW HAS A REPRESENTATIVE OF COMCAST CORP LET MR TURNER KEEP PET PROJECTS LIKE THE MONEYLOSING GOODWILL GAMES BUT WITH VETO POWER OVER ANY UNBUDGETED EXPENDITURE EXCEEDING 2 MILLION THEY ALSO BLOCKED SOME OF HIS PLANS LIKE BUYING FINANCIAL NEWS NETWORK IN 1989 SOME OF THAT RESISTANCE CAME FROM CORPORATE CONSERVATISM MANY OF MR TURNER'S IDEAS HAVEN'T MADE SENSE EITHER LEGALLY OR FINANCIALLY SAY SOME DIRECTORS IN MANY CASES THOUGH HIS AGENDA CLEARLY CONFLICTED WITH THEIRS ALTHOUGH MR TURNER HAS REPEATEDLY EXPLORED SOME COMBINATION WITH A NETWORK BOTH TCI AND TIME WARNER HAVE OPPOSED SHARING HIS PROGRAMS WITH SUCH A RIVAL LAST YEAR TIME WARNER ARGUED MR TURNER OUT OF STARTING HIS OWN 24HOUR NEWS SERVICE IN GERMANY PERSUADING HIM INSTEAD TO INVEST IN ONE IN WHICH TIME WARNER HAS A STAKE OFTEN THOUGH THE CABLE OPERATORS USE BACK CHANNELS EXPRESSING SUCH OBJECTIONS THROUGH EXECUTIVES CLOSE TO MR TURNER AND DEFUSING ISSUES LONG BEFORE THEY REACH THE BOARD WHILE MR TURNER REMAINS A CELEBRITY WITHIN THE COMPANY WE'RE IN AWE OF HIM SAYS A SPOKESMAN HIS DUTIES AS CHIEF EXECUTIVE ARE CONDUCTED PRIMARILY THROUGH PHONE MEETINGS FROM HIS MONTANA RANCHES HE HAS LET TERENCE MCGUIRK EXECUTIVE VICE PRESIDENT AND OTHERS HANDLE DAILY OPERATIONS MR TURNER'S OFTEMPTY OFFICE BECAME SOMETHING OF A COMPANY SHRINE FILLED WITH YACHTING TROPHIES LIKE HIS AMERICA'S CUP THE GONE WITH THE WIND OSCAR STATUETTE PICTURES OF MS FONDA AND HIS LEAD FOLLOW OR GET OUT OF THE WAY SIGNS DISTANCED FROM THE POWER MR TURNER FOUND OTHER DIVERSIONS HE AND MS FONDA FORGED A POLITICALLY CORRECT VERSION OF A WEALTHY COUPLE'S LIFESTYLE HE GAVE UP YACHTING AND DRINKING IN FAVOR OF FLYFISHING AND FITNESS THEY STARTED RAISING BUFFALO AT THEIR BAR NONE AND FLYING D RANCHES IN MONTANA WHERE THE COUPLE FUNDED AN ARCHAEOLOGICAL DIG FOR NEARBY INDIAN TRIBES AND MS FONDA BUILT A SWEAT LODGE FOR MEDITATION THEY ARE HELPING JIMMY CARTER WITH HIS ANTIPOVERTY PROJECT AND RECENTLY DROPPED IN ON THE CLINTONS APPARENTLY TO DISCUSS THE ENVIRONMENT THEY ARE SCHEDULED TO GO TO JULY'S INTERNATIONAL BISON CONFERENCE IN WISCONSIN TO EXTOL THE VIRTUES OF THE LOWFAT MEAT MR TURNER MORE FASCINATED THAN EVER BY HOLLYWOOD ALSO DABBLES IN FILM HE STILL WATCHES CAPTAIN PLANET EPISODES BEFORE THE TBS SUPERSTATION AIRS THEM AND IS PUSHING THE NETWORK FOR A MOVIE FEATURING THE ENVIRONMENTAL SUPERHERO LAST YEAR HE PLAYED A CONFEDERATE COLONEL IN A TNT MINISERIES ABOUT GETTYSBURG AND THEN REPORTEDLY VIEWED EARLY CUTS OF THE FILM HALF A DOZEN TIMES MS FONDA IS PRODUCING A FILM BASED ON THE BOOK LAKOTA WOMAN FOR TURNER BROADCASTING'S RETROSPECTIVE ON NATIVE AMERICANS THE COUPLE TRIES NOT TO BE OSTENTATIOUS MR TURNER DRIVES A FORD TAURUS AND WEARS OFFTHERACK SUITS BUT HE CAN'T SEEM TO STOP BUYING LAND HE HAS TWO PLANTATIONS IN ADDITION TO THE MONTANA RANCHES AND LAST MAY ACQUIRED A SPREAD ABOUT A QUARTER OF THE SIZE OF RHODE ISLAND OF PINYON JUNIPER AND PONDEROSA PINE JUST OUTSIDE THE TOWN OF TRUTH OR CONSEQUENCES NM ALL THAT ALONG WITH A RECENT 100 MILLION PLEDGE TO HIS TURNER FOUNDATION WHICH DONATES MONEY TO ENVIRONMENTAL CAUSES TAKES CASH AND WHILE MR TURNER HAS ABOUT 2 BILLION ON PAPER HIS AGREEMENT WITH THE CABLE OPERATORS WON'T ALLOW HIM TO LET HIS SHARE OF VOTING STOCK FALL BELOW 51 WITHOUT HAVING TO OFFER THEM THE ENTIRE STAKE CURRENTLY 535 AS FOR MS FONDA'S WEALTH TED'S A GUY WHO'S USED TO PICKING UP THE TAB SAYS MICHAEL GEARON A FRIEND AND FORMER BOARD MEMBER MR TURNER HAS REPEATEDLY RELIED ON HIS BOARD PARTNERS FOR SPENDING MONEY SELLING STOCK TO TIME AND TCI TO FINANCE SOME OF THE LAND PURCHASES AND THE COMPANY STARTED PAYING A DIVIDEND LAST YEAR AFTER COMPANY EXECUTIVES SAW IT AS A WAY TO MEET MR TURNER'S CASH NEEDS WITHOUT RAISING HIS SALARY ACCORDING TO A PERSON FAMILIAR WITH THE DISCUSSIONS THROUGH THE DIVIDEND WHICH WAS INCREASED LAST MONTH TO 175 CENTS A SHARE FROM 125 CENTS MR TURNER WILL GET 14 MILLION A QUARTER ON TOP OF HIS 1 MILLION ANNUAL SALARY A BIGGER FRUSTRATION FOR MR TURNER HOWEVER HAS BEEN HIS INABILITY TO KEEP UP WITH A MODERN MEDIA INDUSTRY THAT IS BUSY FINDING BOLD NEW WAYS TO DISTRIBUTE PROGRAMMING INDEED WHILE MEDIA MOGUL BARRY DILLER HAS STAKED OUT HOMESHOPPING TECHNOLOGY AND TIME WARNER AND TCI HAVE BEEN DEVELOPING ELECTRONIC SUPERHIGHWAYS INTO THE HOME MR TURNER HAS BEEN MOSTLY REPACKAGING OLD IDEAS HIS BOLDEST STROKE SINCE THE CABLE OPERATORS CAME ON BOARD WAS TO BUY HANNABARBERA PRODUCTIONS INC FOR 320 MILLION IN 1991 AND USE IT TO START CARTOON NETWORK HIS CHECKOUT CHANNEL BASICALLY A REPACKAGING OF CNN FOR SUPERMARKETS DIED FOR LACK OF INTEREST FROM ADVERTISERS TURNER EXECUTIVES ARE HAVING TROUBLE FIGURING OUT HOW TO DIVIDE AND REPACKAGE THE COMPANY'S PROGRAMMING TO FIT THE EXPECTED EXPLOSION OF CABLE CHANNELS IDEAS LIKE THE WOMEN'S NETWORK AND THE GOLF NETWORK HAVEN'T GONE ANYWHERE AND TURNER HAS HAD TROUBLE SYNDICATING ITS FILM LIBRARY BECAUSE IT DOESN'T HAVE ENOUGH FRESH FILMS TO PACKAGE WITH THE OLD CLASSICS IF HIS COMPANY CAN'T GET ACCESS TO MOVIE THEATERS OR BROADCAST STATIONS IT WON'T BE ABLE TO SPREAD THE COSTS OF THE BIGBUDGET SPORTS OR ENTERTAINMENT EVENTS IT NEEDS TO COMPETE WITH BIGGER MEDIA POWERHOUSES SOME TURNER EXECUTIVES BELIEVE FOR SEVERAL YEARS MR TURNER HAS BEEN LOOKING TO EXPAND PRIMARILY BY BUYING A STUDIO BUT SO FAR HE HASN'T BEEN ABLE TO GET ANY OF HIS BIG IDEAS PAST THE TWO POWERFUL GIANTS THAT CONTROL HIS BOARD PEOPLE CLOSE TO TURNER'S BOARD SAY THAT TIME WARNER AND TCI HAVEN'T ACTUALLY VETOED ANY SERIOUS DEALS BUT THAT TALKS USUALLY NEVER PROGRESS IN PART BECAUSE THE PRINCIPALS KNOW MR TURNER CAN'T CONTROL HIS OWN DESTINY WHEN YOU HAVE TWO 10TON GORILLAS CONTROLLING HIM HE CAN HAVE ALL THE CONVERSATIONS HE WANTS BUT NOTHING EVER GOES ANYWHERE SAYS A TOP EXECUTIVE AT ONE ENTERTAINMENT COMPANY THAT HAS TALKED WITH MR TURNER A MAJOR STUMBLING BLOCK TIME WARNER OWNS ONE OF HOLLYWOOD'S BIGGEST STUDIOS WARNER BROS AND MIGHT FACE ANTITRUST PROBLEMS IF TURNER WERE TO BUY ONE IF TURNER AND THE CABLE OPERATORS SPLIT IT IS UNCLEAR HOW THE DIVORCE SETTLEMENT WOULD WORK TIME WARNER HAS FIRST OPTION ON CNN BUT IS SAID TO BE LESS KEEN ON THE ALLNEWS NETWORK THAN IT ONCE WAS INSTEAD TIME WARNER MIGHT BE MORE INTERESTED IN THE ENTERTAINMENT NETWORKS OR RIGHTS TO THE MGM LIBRARY THAT FIT BETTER WITH ITS HBO AND WARNER BROS MOVIE OPERATIONS TCI AND MR TURNER MIGHT REMAIN LINKED TO CNN PEOPLE CLOSE TO THE COMPANY SAY THAT FOR ALL HIS FRUSTRATIONS WITH TCI MR TURNER REMAINS CLOSE TO MR MALONE AND IS MORE LIKELY TO REMAIN IN BUSINESS WITH HIM ANY NEW ARRANGEMENT PROBABLY WOULD COME UNDER CLOSE SCRUTINY BY THE FEDERAL COMMUNICATIONS COMMISSION WHICH UNDER THE NEW CABLE LAW IS REQUIRED TO CONSIDER POSSIBLE LIMITS ON THE AMOUNT OF PROGRAMMING THAT CABLE OPERATORS LIKE TIME WARNER AND TCI CAN CONTROL AND IF THE MARRIAGE SURVIVES MR TURNER WHOSE BOYHOOD HERO WAS ALEXANDER THE GREAT MAY HAVE TO PUT HIS DREAMS OF CONQUEST ASIDE AND TEND TO MANAGING WHAT HE HAS A STUDY BY THE CONSULTING FIRM BOOZ ALLEN & HAMILTON INC WHICH TURNER BROADCASTING COMMISSIONED LAST YEAR FOUND MANAGEMENT PROBLEMS IN SEVERAL DEPARTMENTS AND SUGGESTED MR TURNER HAS BEEN TOO DETACHED ON BOOZ ALLEN'S RECOMMENDATION MR TURNER IS SITTING THROUGH STEERING COMMITTEE MEETINGS AND SMALLGROUP SESSIONS WITH MIDLEVEL EMPLOYEES HE ALSO LISTENED TO THREE DAYS OF BRAINSTORMING DURING THE COMPANY'S FIRSTEVER MANAGEMENT RETREAT IN WEST PALM BEACH FLA LAST MONTH ON THE LAST DAY HE ADDRESSED THE 100 EXECUTIVES IN ATTENDANCE THE COMPANY WAS GOING FULLTHROTTLE FORWARD PEOPLE WHO ATTENDED RECALL HIM SAYING BUT HE ALSO CONFIDED IF WE ALL HAD OUR WISHES I WISH I COULD BUY A STUDIO OR TWO AND A NETWORK 9304120061 930412 BUSINESS BRIEF PHOENIX LASER SYSTEMS INC SUIT ALLEGES INVESTOR GROUP MISAPPROPRIATED SOME FUNDS PHOENIX LASER SYSTEMS INC FREMONT CALIF SAID IT FILED A LAWSUIT AGAINST AN INVESTOR GROUP SEEKING UNSPECIFIED DAMAGES AS A RESULT OF THE APPARENT MISAPPROPRIATION OF FUNDS PHOENIX A DEVELOPER OF LASER WORKSTATIONS FOR MEDICAL USES ALLEGES THAT HONG KONG BUSINESSMAN SUN SUN CHAN MISAPPROPRIATED 13 MILLION THAT WAS TO BE USED FOR A JOINT VENTURE TO DEVELOP LASER CRYSTALS THE SUIT FILED IN SUPERIOR COURT IN SAN FRANCISCO ALSO CHARGES THAT MR CHAN WAS INVOLVED IN A PLAN TO TAKE OVER CONTROL OF PHOENIX BY DUMPING SHARES OF THE COMPANY'S STOCK TO DEPRESS ITS PRICE PHOENIX CLOSED THURSDAY AT 550 UP 25 CENTS IN AMERICAN STOCK EXCHANGE TRADING THE SUIT NAMES THREE OTHER INVESTORS ELEANOR WONG BERNARD SZATO AND WONG WENG FOO THE DEFENDANTS COULDN'T BE REACHED FOR COMMENT 9304120060 930412 BUSINESS BRIEF LITTON INDUSTRIES INC LAYOFFS SET FOR 750 WORKERS AT GUIDANCE CONTROL UNIT LITTON INDUSTRIES INC SAID IT WILL LAY OFF ABOUT 750 PEOPLE FROM ITS GUIDANCE AND CONTROL UNIT OVER THE NEXT TWO YEARS MOST FROM ITS PRODUCTION FACILITY IN WOODLAND HILLS CALIF WHERE THE UNIT IS BASED DIRK KOERBER A SPOKESMAN FOR BEVERLY HILLS CALIFBASED LITTON SAID ABOUT 650 JOBS WOULD BE LOST AT WOODLAND HILLS BUT THAT 250 EMPLOYEES WOULD BE TRANSFERRED TO THE GUIDANCE AND CONTROL UNIT'S PRODUCTION FACILITY IN SALT LAKE CITY HE SAID THE 400 WOODLAND HILLS WORKERS WHO WILL LOSE THEIR JOBS ARE ASSEMBLYLINE WORKERS MR KOERBER SAID THE UNIT'S PRODUCTION FACILITY IN OREGON WITH ABOUT 200 WORKERS WILL BE CLOSED ALTOGETHER ABOUT 25 OF THESE WORKERS WILL BE TRANSFERED TO SALT LAKE CITY AND THE REST LAID OFF HE SAID MR KOERBER SAID AFTER THE TRANSFERS AND LAYOFFS THE UNIT'S WORK FORCE WILL HAVE DROPPED TO ABOUT 1750 FROM 2500 9304120059 930412 BUSINESS BRIEF TRIANGLE CORP FIRM AGREES TO SELL UNIT TO COOPER INDUSTRIES INC TRIANGLE CORP SAID IT AGREED TO SELL ITS HAND TOOL HORSESHOE AND FARRIER TOOLS USED BY HORSESHOERS BUSINESS TO COOPER INDUSTRIES INC FOR 324 MILLION AND THE ASSUMPTION OF CERTAIN DEBT THESE OPERATIONS REPRESENTED ABOUT 90 OF TRIANGLE'S 1992 REVENUE OF 485 MILLION TRIANGLE DID NOT DISCLOSE THE REASON FOR THE SALE THE COMPANY COULDN'T BE REACHED FOR COMMENT PART OF THE 324 MILLION SALE PRICE WILL BE DEFERRED TRIANGLE IN STAMFORD CONN SAID IF APPROVED BY SHAREHOLDERS THE TRANSACTION WOULD RESULT IN A LOSS OF AT LEAST 5 MILLION IT ADDED COOPER INDUSTRIES IN HOUSTON WITH 1992 REVENUE OF 62 BILLION IS A WORLDWIDE MAKER OF ELECTRICAL PRODUCTS ELECTRICAL POWER EQUIPMENT TOOLS HARDWARE AND OTHER PRODUCTS 9304120057 930412 MIYAZAWA TO STEER TALKS AT SUMMIT WITH CLINTON TOWARD PARTNERSHIP ROLE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHEN PRIME MINISTER KIICHI MIYAZAWA HOLDS HIS FIRST SUMMIT FRIDAY WITH PRESIDENT CLINTON HE WILL TRY TO STEER THE TALKS BEYOND TRADE SQUABBLES AND ATTEMPT TO SHAPE JAPAN'S LONGDESIRED GLOBAL PARTNERSHIP WITH THE US MR MIYAZAWA WILL GO TO WASHINGTON WITH A SERIES OF PROPOSALS INTENDED TO DEMONSTRATE JAPAN'S WILLINGNESS TO TAKE A LEADING ROLE IN GUIDING THE GLOBAL ECONOMY ACCORDING TO WEEKEND JAPANESE PRESS REPORTS IN ADDITION TO MEASURES AIMED AT LOWERING JAPAN'S HUGE TRADE SURPLUS THESE PLANS REPORTEDLY INCLUDE BOOSTING AID TO RUSSIA INCREASING AID TO DEVELOPING COUNTRIES AND EXPANDING JOINT SCIENTIFIC AND TECHNOLOGICAL RESEARCH WITH THE US EVEN BEFORE MR MIYAZAWA'S TRIP JAPANESE GOVERNMENT OFFICIALS ARE TRYING TO CREATE AN ATMOSPHERE OF GOODWILL BETWEEN THE TWO COUNTRIES ON FRIDAY JAPAN'S EXPORTIMPORT BANK ANNOUNCED IT WILL INVEST 12 MILLION IN A LOS ANGELES COAL TERMINAL PROJECT TO PROMOTE INDUSTRIAL COOPERATION BETWEEN THE US AND JAPAN YOU HAVE TO LOOK AT THESE THINGS AS AN EXAMPLE OF JAPANESE EFFORTS TO EMPHASIZE COOPERATION INSTEAD OF HAGGLING SAID ONE US GOVERNMENT OFFICIAL MR CLINTON AND HIS AIDES HAVE REPEATEDLY ATTACKED JAPANESE TRADING PRACTICES IN RECENT WEEKS AND THE NEW ADMINISTRATION IS EXPECTED TO TAKE A MUCH HARDER LINE ON THE MATTER THAN ITS TWO REPUBLICAN PREDECESSORS THE CENTERPIECE OF MR MIYAZAWA'S PRESENTATION WILL BE A RECORDSETTING SPENDING PACKAGE DESIGNED TO BOOST JAPAN'S SLUGGISH ECONOMY AND TO STIMULATE IMPORTS THAT PACKAGE SCHEDULED FOR RELEASE TUESDAY IS NOW EXPECTED TO TOTAL ABOUT 12 TRILLION YEN 10585 BILLION OF WHICH ABOUT ONE TRILLION YEN MAY BE DEDICATED TO SPENDING ON SOCALLED NEW SOCIAL CAPITAL SUCH AS TELECOMMUNICATIONS COMPUTERS AND MEDICAL EQUIPMENT MR MIYAZAWA IS LIKELY TO ARGUE THAT SPENDING ON THESE TECHNOLOGIES WILL BOOST IMPORTS BECAUSE US FIRMS ARE HIGHLY COMPETITIVE IN FIELDS SUCH AS MEDICAL EQUIPMENT AND SUPERCOMPUTERS SOME PRESS REPORTS HAVE SUGGESTED THAT THE JAPANESE GOVERNMENT MAY ALSO IMPORT OTHER BIGTICKET ITEMS SUCH AS A LARGE PASSENGER AIRCRAFT FOR GOVERNMENT TRAVEL ACCORDING TO A REPORT IN THE ASAHI SHIMBUN MR MIYAZAWA WILL ALSO PROPOSE A NEW BILATERAL COUNCIL TO REPLACE THE STRUCTURAL IMPEDIMENTS INITIATIVE A BUSH ADMINISTRATIONERA FORUM DESIGNED TO ELIMINATE STRUCTURAL BARRIERS TO REDUCING THE BILATERAL TRADE IMBALANCE MR MIYAZAWA IS ALSO LIKELY TO PROMOTE JAPAN'S CONTRIBUTION TO THE LATEST RUSSIAN AID PACKAGE AS EVIDENCE OF HIS NATION'S WILLINGNESS TO TAKE A LEADING ROLE IN WORLD AFFAIRS THIS WEEK IN TOKYO JAPAN WILL HOST A MEETING OF THE FOREIGN AND FINANCE MINISTERS FROM THE GROUP OF SEVEN INDUSTRIALIZED DEMOCRACIES JAPAN THE US GERMANY BRITAIN FRANCE ITALY AND CANADA TO HAMMER OUT THE DETAILS OF NEW MULTILATERAL AID THE TOTAL IS EXPECTED TO BE AS HIGH AS 30 BILLION AND JAPAN IS BEING PRESSURED TO UNDERWRITE A GREATER SHARE THAN IT HAS IN THE PAST PRESS REPORTS ALSO SUGGEST THAT MR MIYAZAWA WILL PRESENT PLANS FOR A VARIETY OF JOINT USJAPAN RESEARCH PROJECTS INCLUDING WORK ON ENVIRONMENTAL PROBLEMS AND HIGHSPEED RAIL SYSTEMS SUCH AS HIGHTECH MAGNETICALLY LEVITATED OR MAGLEV TRAINS 9304120056 930412 BUSINESS BRIEF ABBEY HEALTHCARE GROUP INC PROXY WAR FOR BOARD SEAT AT LIFETIME IS UNDERWAY ABBEY HEALTHCARE GROUP INC SAID IT HAS TAKEN THE FIRST STEP IN A PROXY WAR PUTTING FORWARD ITS OWN CANDIDATE TO CHALLENGE LIFETIME CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANTHONY H REEVES FOR HIS SEAT ON THE BOARD OF THE BOSTONBASED HOME HEALTHCARE SERVICES CONCERN AN ABBEY SPOKESMAN SAID A STATEMENT OUTLINING ITS INTENT TO NOMINATE LEONARD GREEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GREEN MANAGEMENT & INVESTMENT CO AND A DIRECTOR OF ORNDA HEALTHCORP TO REPLACE MR REEVES WILL BE HANDDELIVERED TO ALL MAJOR SHAREHOLDERS TODAY THE MOVE BY THE COSTA MESA CALIF HOME HEALTHCARE CONCERN IS THE LATEST IN ITS PURSUIT OF A MERGER OR OTHER COMBINATION WITH LIFETIME A LIFETIME SPOKESMAN SAID THE BOARD STANDS BY ITS UNANIMOUS DECISION TO REJECT ABBEY'S ADVANCES AND SEEK ALTERNATIVES LIFETIME HAS MAINTAINED THAT ABBEY'S OFFERS HAVE NOT BEEN ADEQUATELY FINANCED THE ABBEY SPOKESMAN SAID THAT IF THE PROXY FIGHT IS SUCCESSFUL WE'RE PREPARED TO NEGOTIATE A MERGER WITH NEW MANAGEMENT BUT REPEATED THAT NO PLANS FOR A HOSTILE TAKEOVER BATTLE ARE UNDER WAY 9304120055 930412 INTERNATIONAL WASHINGTON INSIGHT IN POLAND AND EAST A PROBLEM LOOMS WHAT TO DO WITH STATERUN DINOSAURS BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMONG EASTERN EUROPE'S REFORMING ECONOMIES POLAND STANDS OUT AS THE BIGGEST AND BOLDEST SHORTLY AFTER ITS 1989 BREAK WITH COMMUNISM WARSAW FREED PRICES MADE THE ZLOTY CONVERTIBLE AND LIBERALIZED TRADE WITH THE WEST POLAND'S INTERNATIONAL CAPITALIST CONSULTANTS PRAISED THIS SHOCK THERAPY APPROACH AND WHILE THE DATA ARE CRUDE POLAND'S ECONOMY SEEMS TO BE SHOWING EARLY SIGNS OF GROWTH BUT BEFORE THE SELFCONGRATULATION GOES TOO FAR WARSAW AND ITS GLOBAL MENTORS MUST CONFRONT A PROBLEM THAT NAGS POLAND'S ECONOMY WHAT TO DO WITH THE HUGE STATEOWNED INDUSTRIAL DINOSAURS THAT EMPLOY TENS OF THOUSANDS OF WORKERS AND SOAK UP TRUCKLOADS OF GOVERNMENT CREDITS THE SAME PROBLEM THREATENS TO CHOKE IMPROVEMENTS ELSEWHERE IN EASTERN EUROPE AND SMOTHER ECONOMIC REFORM IN RUSSIA THE RESTRUCTURING HAS HARDLY STARTED SAYS JOHN FLEMMING CHIEF ECONOMIST OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT OR EBRD ON A RECENT VISIT TO WASHINGTON POLISH FINANCE MINISTER JERZY OSIATYNSKI MADE IT CLEAR THAT POLAND IS ANYTHING BUT HOME FREE IN ITS QUEST FOR A FUNCTIONING MARKET ECONOMY THE MASSIVE COAL STEEL AND ARMAMENTS SECTORS ALL FACE RESTRUCTURING TO MOVE THEM OUT OF STATE OWNERSHIP AND INTO THE RIGORS OF THE WORLD MARKET THE FARM SECTOR THOUGH NOT STATEOWNED FACES A COMPARABLE UPHEAVAL AT THE VERY LEAST RESTRUCTURING WILL REQUIRE RADICAL SHRINKAGE AND WHOLESALE LAYOFFS OF WORKERS FOR SOME BIG ENTERPRISES IT WILL MEAN BANKRUPTCY RATHER THAN DOWNSIZING EVEN SETTING ASIDE THE POLITICAL FALLOUT THE GOVERNMENT FACES A DANGEROUS FINANCIAL BURDEN IF WAVES OF JOBLESS ARE CREATED ON TOP OF TODAY'S 15 UNEMPLOYMENT LEVELS I DON'T WANT THE WHOLE COUNTRY TO BE COVERED BY EXTENDED BENEFITS MR OSIATYNSKI SAYS HE FEARS THAT HIGHER OUTLAYS FOR JOBLESS BENEFITS COULD TRANSLATE TO A FATTER GOVERNMENT DEFICIT ALREADY 5 OF THE POLISH ECONOMY ALONG WITH WILDER INFLATION ALREADY 38 A YEAR RUSSIA IS STUCK WITH A WORSE VERSION OF THE SAME PROBLEM AN EVEN BIGGER SLICE OF ITS POPULATION DEPENDS ON AN EVEN MORE OUTMODED SET OF INDUSTRIAL DINOSAURS TO KEEP THEM CHUGGING ALONG MOSCOW PRINTS RUBLES AROUND THE CLOCK TO SUPPORT CONTINUING GOVERNMENT CREDITS SO FAR THE WEST HASN'T PROVIDED ANY BLUEPRINTS FOR SOLVING THE DINOSAUR PROBLEM SOME EXPERTS ARE TEMPTED TO EXTEND THE SHOCKTHERAPY APPROACH TO INDUSTRIAL RESTRUCTURING BECAUSE IT WORKED WITH PRICE LIBERALIZATION AND OTHER ASPECTS OF ECONOMIC REFORM BUT A LEAP IN UNEMPLOYMENT AS HUGE INDUSTRIES ARE SHRUNK OR SHUTTERED COULD JEOPARDIZE THE HARDWON ECONOMIC GAINS AND SPARK POLITICAL BACKLASH AMERICANS WHO TEND TO DUMP THEIR LEADERS WHEN UNEMPLOYMENT REACHES ABOUT 8 CAN'T EXPECT THE POSTCOMMUNIST GOVERNMENTS TO WEATHER 25 UNEMPLOYMENT RATES THE PROBLEM IS TIMING THE OLD STATERUN STRUCTURES IF CUT OFF FROM GOVERNMENT CREDITS WOULD COLLAPSE FASTER THAN NEW PRIVATESECTOR SOURCES OF EMPLOYMENT COULD COME INTO BEING THE EBRD FOR ITS PART IS FASHIONING A GRADUALIST APPROACH THE BANK WOULD SET ASIDE A PORTION OF ITS FUNDS FOR RELATIVELY HIGHRISK LOANS TO SUPPORT LARGE FORMER EAST BLOC ENTERPRISES WHILE THEY COME UP WITH PLANS FOR THE FUTURE BANK OFFICIALS ARGUE THAT SOME OF THE ENTERPRISES COULD TURN AROUND IF THEY HAD THE TIME SKEPTICS WORRY THE EBRD PLAN COULD POUR FUNDS DOWN A RAT HOLE STILL BANK OFFICIALS SAY THAT WITH NATIONS ALREADY REELING FROM DOUBLEDIGIT UNEMPLOYMENT THE INTERNATIONAL COMMUNITY SHOULDN'T FORCE STEPS THAT WOULD SHARPLY REDUCE OUTPUT AND EXPAND THE JOBLESS RANKS EVEN THE CZECH REPUBLIC WHOSE MARKET ORIENTATION IS PROBABLY THE MOST UNDILUTED IN THE FORMER EAST BLOC PLANS BANKRUPTCY PROCEDURES THAT ALLOW ENTERPRISES A LITTLE BREATHING ROOM UNDER CHAPTER 11TYPE PROTECTIONS FROM CREDITORS MORE FOREIGN INVESTMENT IS CRUCIAL TO ANY RESTRUCTURING HERE THE POLES HAVE COME UP SHORT ACCORDING TO THE INTERNATIONAL FINANCE CORP A WORLD BANK AFFILIATE POLAND ATTRACTED JUST 210 MILLION IN FOREIGN INVESTMENT LAST YEAR COMPARED WITH 14 BILLION IN HUNGARY AND 12 BILLION IN THE CZECH AND SLOVAK REPUBLICS ITALIAN INVESTORS HAVE BEEN THE MOST ACTIVE IN POLAND IN ONE PROMISING DEAL LUCCHINI A PRIVATE STEEL CONCERN BASED IN BRESCIA ITALY BOUGHT A CONTROLLING INTEREST IN HUTA WARSAWA A POLISH SPECIALTY STEEL FIRM TO ENCOURAGE THE ACQUISITION THE EBRD AND IFC AGREED TO HELP FINANCE THE POLISH COMPANY'S MODERNIZATION ALONG THE WAY THE WORK FORCE IS EXPECTED TO BE SLASHED TO 2300 FROM 4500 BUT AT LEAST HUTA HAS A FUTURE BUT POLAND NEEDS SEVERAL HUNDRED MORE DEALS LIKE THAT ONE SAYS EDWARD NASSIM THE IFC'S DIRECTOR FOR EUROPE THE GOVERNMENT'S BEEN WALKING DOWN A TIGHTROPE TO ALLOW THE PRIVATE SECTOR TO GROW FAST ENOUGH TO SOAK UP THE UNEMPLOYMENT THAT'S CREATED BY RESTRUCTURING SO FAR THEY'VE DONE IT QUITE SUCCESSFULLY BUT THE HARD PART LIES AHEAD 9304120054 930412 WHAT'S NEWS BUSINESS AND FINANCE GENERAL MOTORS WAS ASKED BY FEDERAL SAFETY REGULATORS TO RECALL 47 MILLION PICKUP TRUCKS WITH SIDEMOUNTED GAS TANKS ALTHOUGH THE AUTO MAKER HAS UNTIL THE END OF THE MONTH TO ISSUE AN OFFICIAL RESPONSE THE COMPANY IMMEDIATELY REJECTED THE PRELIMINARY REQUEST AS UNWARRANTED THE RECALL COULD COST GM 200 MILLION TO 1 BILLION THE COMPANY'S RESPONSE COULD RESULT IN A LEGAL BATTLE THAT COULD DRAG ON FOR YEARS AND TARNISH GM'S IMAGE LIBERTY MEDIA WITHDREW A 642 MILLION OFFER TO BUY CONTROL OF HOME SHOPPING NETWORK AMID A FEDERAL PROBE AND PRIVATE SUITS ALLEGING FINANCIAL IMPROPRIETIES BY HOME'S CHAIRMAN AND EXPRESIDENT THE MOVE DASHES PROSPECTS FOR A MERGER BETWEEN TWO DOMINANT HOME SHOPPING SERVICES CLINTON PLANS TO LIMIT THE POWER OF ENVIRONMENTAL AND LABOR PANELS IN THE NORTH AMERICAN TRADE PACT ALLAYING MEXICAN AND CANADIAN FEARS BUT SETTING THE STAGE FOR US OPPOSITION CLINTON ALSO ASKED CONGRESS TO RENEW AN AUTHORITY TO KEEP A WORLD TRADE PACT FROM BEING SUBJECT TO AMENDMENTS THE CONSUMER PRICE INDEX CLIMBED 01 IN MARCH TEMPERING FEARS OF INCREASING INFLATION AFTER LARGER RISES THE PREVIOUS TWO MONTHS THE RISE IN THE COST OF MEDICAL CARE SLOWED TO 03 LAST MONTH FROM FEBRUARY'S 05 AND WAS THE LOWEST RATE SINCE 1984 BOEING IS NEGOTIATING A PURCHASE BY CHINA OF WIDEBODIED AIRCRAFT FOR AT LEAST 800 MILLION THE TALKS FOLLOW THE MANUFACTURER'S ANNOUNCEMENT LAST WEEK OF AN ORDER FROM CHINA OF SIMILAR VALUE FOR SMALLER JETS BOEING SIGNALED SUPPORT FOR CHINA TO MAINTAIN ITS MOSTFAVORED NATION STATUS IN THE US HONDA PLANS TO RAISE BASE PRICES IN THE US OF ITS HONDA AND ACURA CARS FOR THE SECOND TIME IN THREE MONTHS THE JAPANESE AUTO MAKER AIMS TO COUNTER PROFIT PRESSURES FROM THE YEN'S STRENGTH AGAINST THE DOLLAR PRUDENTIAL SECURITIES PLANS TO WITHDRAW A 100 MILLION PROPOSAL TO SETTLE A CLASSACTION CASE BROUGHT BY 130000 INVESTORS IN ENERGY PARTNERSHIPS PEOPLE CLOSE TO THE MATTER SAID THE FIRM IS SAID TO WANT TO FIRST SELL THE PARTNERSHIPS' ASSETS HOPING TO MAKE MORE MONEY AVAILABLE FOR INVESTORS GPA'S DEBT RATING WAS DOWNGRADED BY MOODY'S THE AGENCY CITED THE UNCERTAIN OUTCOME OF THE IRISH AIRCRAFT LEASING COMPANY'S FINANCIAL RESTRUCTURING MOODY'S ACTION FOLLOWS A SIMILAR MOVE BY S&P AND A SHARP DECLINE IN GPA'S BONDS IN RECENT WEEKS TELECOMMUNICATIONS INC PLANS A 2 BILLION FOURYEAR PLAN TO REWIRE ITS CABLE SYSTEMS NATIONWIDE WITH HIGHCAPACITY OPTICAL FIBER DESPITE HARSH RULES RESTRICTING CABLE TV RATES TCI'S BLUEPRINT IS AIMED AT CREATING A SOCALLED ELECTRONIC SUPERHIGHWAY AND CALLS FOR 7000 MILES OF FIBER HUGHES AIRCRAFT AGREED TO INSTALL A RESIDENTIAL CELLULAR PHONE SYSTEM FOR UP TO 100000 SUBSCRIBERS IN CHINA PEOPLE FAMILIAR WITH THE PACT SAID TOKYO STOCKS WERE MIXED FRIDAY THE NIKKEI INDEX FELL 7509 POINTS TO 1989218 MOST BIG MARKETS WORLDWIDE WERE CLOSED FOR THE EASTER HOLIDAY AIRLINES PLAN TO OFFER SOME VACATION DISCOUNTS THIS SUMMER BUT THEY WON'T BE AS GENEROUS OR WIDESPREAD AS THE ACROSSTHEBOARD CUTS LAST YEAR TRAVEL OFFICIALS WARN AN IMPROVED ECONOMY HAS DIMINISHED AIRLINES' RELIANCE ON DISCOUNTS TO FILL THEIR PLANES STOCKS MARKETS CLOSED BECAUSE OF GOOD FRIDAY BONDS MARKETS CLOSED COMMODITIES MARKETS CLOSED DOLLAR MARKETS CLOSED 9304120053 930412 WHAT'S NEWS WORLDWIDE A SERB COMMANDER SAID NATO HAS NO CHANCE OF STOPPING HIS FORCES AS NATO WARPLANES PREPARED TO BEGIN ENFORCING A FLIGHT BAN OVER BOSNIA TODAY THE DEFIANT LEADER OF REBEL SERBS ALLEGED THAT THE WESTERN ALLIANCE IS DRAWING UP PLANS FOR AN EXPANDED AIR EFFORT THAT WOULD TARGET SERB GROUND POSITIONS WITH TENSIONS RISING UN OFFICIALS CANCELED TODAY'S SCHEDULED AID CONVOY TO MUSLIMS IN THE BESIEGED TOWN OF SREBRENICA THE MUSLIMLED BOSNIAN GOVERNMENT CITING NEW CLASHES IN THE FORMER YUGOSLAV REPUBLIC SAID IT WOULDN'T ATTEND TALKS TODAY WITH SERB MILITARY LEADERS POPE JOHN PAUL II PLEADED FOR AN END TO THE ATROCIOUS DRAMA IN BOSNIA THAT HUMILIATES EUROPE AND SERIOUSLY COMPROMISES THE FUTURE OF PEACE TWO WHITE SOUTH AFRICANS WERE SET AFIRE AND KILLED IN A BLACK TOWNSHIP NEAR CAPE TOWN AND A THIRD WAS IN SERIOUS CONDITION AFTER PART OF HIS TONGUE WAS CUT OFF POLICE SAID THE VIOLENCE FLARED AFTER SATURDAY'S SLAYING OF A BLACK LEADER CHRIS HANI APPARENTLY BY A WHITE RIGHTWINGER AT LEAST ONE BLACK MAN WAS KILLED IN A CLASH WITH POLICE JURORS BEGAN DELIBERATIONS SATURDAY TO DECIDE THE FATE OF FOUR LOS ANGELES POLICEMEN ACCUSED OF VIOLATING RODNEY KING'S CIVIL RIGHTS THE POLICE DEPARTMENT CALLED UP 600 ADDITIONAL OFFICERS FOR DUTY WHILE MINISTERS AND CIVIC LEADERS APPEALED FOR A PEACEFUL RESPONSE NO MATTER WHAT THE VERDICT THE ISRAELI CABINET DECIDED TO KEEP THE OCCUPIED TERRITORIES CLOSED INDEFINITELY AND RABIN PRESENTED A PLAN TO PERMANENTLY CUT BACK THE NUMBER OF PALESTINIANS EMPLOYED IN ISRAEL WHEN THE BORDERS ARE EVENTUALLY REOPENED THE PRIME MINISTER WANTS TO REDUCE THE NUMBER OF PALESTINIAN WORKERS TO 70000 FROM 110000 RUSSIA'S CENTRAL BANK IS STARTING TO COOPERATE MORE CLOSELY WITH THE GOVERNMENT TO CURB HYPERINFLATION ACCORDING TO VICE PREMIER FYODOROV HE SAID SATURDAY THAT THREE CENTRAL BANK OFFICIALS AGREED TO A PLAN AIMED AT CURTAILING THE GROWTH OF BANK CREDITS THIS YEAR HE ALSO SAID THE CENTRAL BANK PLANS TO RAISE INTEREST RATES THE STATE OF WASHINGTON IS PREPARING TO ENACT ONE OF THE MOST AMBITIOUS HEALTHCARE PLANS IN THE US THE PLAN WILL PROVIDE BASIC COVERAGE TO 500000 UNINSURED RESIDENTS AND WILL TRY TO CONTAIN COSTS BY REQUIRING MANAGED COMPETITION AMONG DOCTORS AND HOSPITALS AND BY IMPOSING CEILINGS ON INSURANCE PREMIUMS WHITE HOUSE OFFICIALS OFFERED MORE DETAILS ON THEIR HEALTH PLAN FRIDAY DESCRIBING A SYSTEM IN WHICH AMERICANS WOULD CARRY HEALTH SECURITY CARDS EMPLOYERS WOULD CONTRIBUTE TO COVERAGE AND THE GOVERNMENT WOULD SUBSIDIZE CARE FOR THE POOR ABOUT 20 FINANCING OPTIONS ARE SAID TO BE UNDER CONSIDERATION BENJAMIN CHAVIS WAS CHOSEN FRIDAY TO SUCCEED BENJAMIN HOOKS AS HEAD OF THE 500000MEMBER NAACP THE NATION'S OLDEST CIVIL RIGHTS ORGANIZATION JESSE JACKSON WITHDREW FROM CONTENTION LAST WEEK IRAQ EXPRESSED DISAPPOINTMENT THAT THE CLINTON ADMINISTRATION FAILED TO RESPOND TO BAGHDAD'S OFFER OF A FRESH START IN RELATIONS ON FRIDAY THE US ANNOUNCED THAT PLANES PATROLLING THE NORTHERN NOFLY ZONE DROPPED FOUR CLUSTER BOMBS IN REACTION TO GROUND FIRE IRAQ DENIED SHOOTING AT THE PLANES REP HAROLD FORD WAS FOUND NOT GUILTY OF TAKING IMPROPER PAYMENTS FROM TWO FORMER BANKERS A FEDERALCOURT JURY FRIDAY ACQUITTED THE TENNESSEE DEMOCRAT OF CHARGES THAT HE TOOK 12 MILLION IN BOGUS LOANS THAT ACCORDING TO THE CHARGES WERE PAYOFFS AZERBAIJAN SAID THAT ARMENIAN FORCES HAD CAPTURED 18 VILLAGES AND KEY MOUNTAIN OUTPOSTS IN SOUTHWESTERN AZERBAIJAN AND ARMENIA REPORTED HEAVY COMBAT NEAR THE DISPUTED ENCLAVE OF NAGORNOKARABAKH MUSLIM EXTREMISTS KILLED A POLICEMAN AND TWO AIDES IN SOUTHERN EGYPT AUTHORITIES SAID IN CAIRO TWO PEOPLE WERE HURT WHEN A BOMB EXPLODED IN A BUS POLICE ALSO DEFUSED EXPLOSIVES IN A GERMAN TOURIST BUS INDIAN SECURITY FORCES KILLED EIGHT SUSPECTED MUSLIM MILITANTS IN THE NORTHERN STATE OF JAMMUKASHMIR AND SEPARATIST GUERRILLAS KILLED FIVE PEOPLE IN RETALIATION ACCORDING TO NEWS REPORTS BERNHARD LANGER OF GERMANY WON THE MASTERS GOLF CHAMPIONSHIP IN AUGUSTA GA BY FOUR STROKES 9304120052 930412 LEISURE & ARTS PUPPET SHOW FOR ADULTS ONLY BY TESSA DE CARLO SAN FRANCISCO STUMBLING OVER WORDS LIKE DEBAUCH LIBERTINAGE AND BOSOM A SMALL BAND OF ART LOVERS HERE RECENTLY MARKED THE CLOSE OF SCULPTOR NAYLAND BLAKE'S LATEST LARGESCALE INSTALLATION WITH A FREEFORALL READING OF THE WORK THAT SERVED AS ITS INSPIRATION THE MARQUIS DE SADE'S PHILOSOPHY IN THE BEDROOM THE INSTALLATION TITLED THE PHILOSOPHER'S SUITE INCLUDED A LARGE WOODEN MARIONETTE STAGE AND SIX PUPPETS SOME SKELETAL AND THREATENING OTHERS BLOND AND BATTERED REPRESENTING THE CHARACTERS IN SADE'S SEXUALLY EXPLICIT PLAY OF 1795 BUT THE READING ON THE EXHIBIT'S LAST DAY WAS THE CLOSEST THE INSTALLATION CAME TO ACTUAL PERFORMANCE THIS DOCUMENTS A PUPPET SHOW THAT HAS NEVER OCCURRED THAT OCCURS ONLY IN THE MIND OF THE VIEWER EXPLAINED MR BLAKE A TALL FELLOW WITH CLOSECROPPED HAIR A SMALL GOATEE AND SILVER EARRINGS THERE'S A CERTAIN WAY THE FRAGMENT CAN BE MORE EVOCATIVE THAN THE WHOLE PUPPETS AND SADOMASOCHISTIC GEAR OFTEN FIGURE IN THE WORK OF THE 33YEAROLD SCULPTOR WHOM THE NEW YORK TIMES LAST YEAR CALLED A NEW AND PROVOCATIVE BREED OF ART STAR HIS CURRENT NEW YORK SHOW OF EIGHT SMALLER PIECES AT THE MATTHEW MARKS GALLERY ON MADISON AVENUE INCLUDES FLAYED PINOCCHIOS AFFIXED TO LITTLE METAL BEDS AND A FETISHISTIC LEATHER MASK WITH A LONG TWIG IN PLACE OF A NOSE THE SHOW RUNS THROUGH APRIL 24 NONE OF THIS MAKES MR MARKS HIMSELF SHY IN THE SLIGHTEST S&M FOR NAYLAND IS JUST A FORM OF DRAG AND FOR HIM DRAG IS ABOUT CHANGING IDENTITY THE OWNER OF THE CHIC EAST SIDE GALLERY EXPLAINED HE IS FOR ME THE MOST INTERESTING SCULPTOR OF HIS GENERATION THE INSTALLATION AT THE NONPROFIT SAN FRANCISCO ARTSPACE DERIVED A LITTLE ADDITIONAL KICK FROM ITS LOCATION IN THE CITY'S SOUTHOFMARKET DISTRICT HOME OF THE STUD THE WATERING HOLE AND NUMEROUS OTHER BARS CATERING TO THE CITY'S SADOMASOCHISTIC SUBCULTURE AROUND THE CORNER STORMY LEATHER ONE OF SEVERAL EROTIC EMPORIUMS IN THE NEIGHBORHOOD SELLS WHIPS HARNESSES AND AN EYEOPENING ARRAY OF LEATHER AND LATEX APPAREL FLYERS ON THE COUNTER ADVERTISE CLASSES IN EROTIC SHAVING FOR PERVERTS CUSTOMIZING YOUR WHIPPING AND DECORATIVE BODY CARVING DOWN THE STREET AN XRATED BAKERY OFFERS CAKES DECORATED WITH ICING PICTURES OF A HALFDRESSED MAN HANGING FROM A RACK OR A WELTCOVERED BACKSIDE THE MOOD OF MR BLAKE'S INSTALLATION BY CONTRAST WAS CEREBRAL AND ALMOST PURITANICAL VISITORS ENTERED BY WALKING BENEATH THE BLADE OF A GUILLOTINE AND WERE INVITED TO LOOK AT COPIES OF THE PLAY THAT HAD BEEN VARIOUSLY SHREDDED PICKLED AND BURNED IN ADDITION TO PONDERING THE STAGE AND THE PUPPETS THEY COULD ALSO CLIMB TO A PLATFORM ATOP A LARGE PLYWOOD BOOTH ACROSS FROM THE STAGE AND DECLAIM THE PLAY THEIR VOICES WERE SIMULTANEOUSLY PUMPED INTO A BOOTH BELOW WHICH WAS TITLED CONFESSIONAL PRODUCTION OF PHILOSOPHY IN THE BEDROOM' 199293 INSIDE THE BOOTH BEHIND A BLACK CURTAIN A VIDEO SCRAMBLE OF HORROR MOVIES PORN AND OLD HOLLYWOOD COSTUME DRAMAS SHOWED ON A SMALL TELEVISION SCREEN ON ONE WALL THE ARTIST HAD MOUNTED A METAL PAPERTOWEL HOLDER IT'S MODELED ON A VIDEO PEEP BOOTH HE SAID THE CIVILIZED ONES HAVE PAPER TOWELS A CONFESSIONAL THAT IS ALSO A PEEP SHOW A PUPPET STAGE WHOSE VIEWERS ARE ALSO IN SOME SENSE THE ARTIST'S PUPPETS THROUGH SUCH DEVICES MR BLAKE SEEKS TO COUNTER THE SUPERFICIAL BOHEMIANISM OF EMBRACING SADEAN TRAPPINGS BECAUSE PEOPLE THINK IT'S DIRTY OR SOMETHING THE PLAY THAT INSPIRED ALL THIS DRAMATIZES THE SEDUCTION OF A YOUNG GIRL BY A CREW OF TALKY LIBERTINES SEX IN THE PLAY IS INSEPARABLE FROM THE PHILOSOPHICAL DISCUSSIONS THAT CALL IT INTO BEING MR BLAKE OBSERVED THAT MAKES IT COMPLETELY FRUSTRATING IF YOU'RE READING IT FOR THE PHILOSOPHY YOU KEEP COMING UP AGAINST THIS SMUT IF YOU'RE READING IT FOR THE SMUT YOU HAVE TO WADE THROUGH THESE BIG BORING SECTIONS OF PHILOSOPHY THEY INCLUDE A LONG PROCHOICE ARGUMENT A GAYRIGHTS ARGUMENT EXTREME LIBERTARIAN VIEWS AN ARGUMENT AGAINST THE DEATH PENALTY ALONGSIDE AN ARGUMENT FOR THE INDIVIDUAL'S RIGHT TO KILL ANYONE THEY WANT THE ARTIST SAID IDEAS OF LIBERTY ARE ALLIED WITH LIBERTINAGE WE ARE STILL PUZZLING OVER THAT WHERE DOES MORALITY COME FROM IF IT DOESN'T COME FROM THEOLOGY ONCE YOU START TO ENGAGE WITH THESE IDEAS YOU SEE THEY ARE COMPLEX YOU CAN'T JUST OWN THEM THE WAY YOU CAN OWN A LEATHER JACKET JOHN CALDWELL CURATOR OF PAINTING AND SCULPTURE AT THE SAN FRANCISCO MUSEUM OF MODERN ART VISITED THE INSTALLATION TWICE AND RELISHED ITS CONTRAST WITH THE NEIGHBORHOOD SCENE FOR NAYLAND TO BRING THE ESSENTIALLY VERY ARTIFICIAL VIEW OF SEXUALITY OF THE MARQUIS DE SADE INTO CONJUNCTION WITH THE WORLD OF FAIRLY REAL FAIRLY EXTENSIVE DEDICATION TO WHAT THE MARQUIS DE SADE WAS ACTUALLY TALKING ABOUT WAS TERRIFICALLY WEIRD AND INTERESTING HE SAID BUT THE INSTALLATION ITSELF WAS NOT SEXY MR CALDWELL ADDED NAYLAND IS INVESTIGATING THE EROTIC RATHER THAN BEING IT CERTAINLY THE FREEFORALL READING WAS AN ALMOST PAINFULLY SEDATE AFFAIR SITTING ON REDANDWHITE FOLDING CHAIRS CROWDED IN BETWEEN THE PUPPET STAGE AND THE CONFESSIONAL BOOTH 20 OR SO PEOPLE TOOK TURNS WRESTLING WITH SADE'S 18THCENTURY SYNTAX AND VOCABULARY MOST OF THE AUDIENCE DRIFTED OUT AS SOON AS THE TEXT TURNED FROM SEXUAL HIGH JINKS TO A MULTIPAGE POLEMIC CONCERNING THE NONEXISTENCE OF GOD I LIKE THE INSTALLATION A LOT ESPECIALLY THE PAPER STUFF SAID HORST GRUNER A PARTTIME STUDENT IN A MOTORCYCLE JACKET AS HE DEPARTED BUT THOSE LONG SPEECHES LIKE MR GRUNER MANY IN THE AUDIENCE WORE BLACK LEATHER BUT THE STYLE WAS ARTWORLD BOHO RATHER THAN S&M THAT DOESN'T MEAN MUCH ACCORDING TO CHRISTIAN HUYGEN A PONYTAILED NOVELIST IN SWEATER AND SHORTS WHO GAVE A SPIRITED READING OF EUGENIE THE PLAY'S ENTHUSIASTIC VIRGIN IT'S VERY FASHIONABLE TO ADOPT SIGNIFIERS OF TRANSGRESSIVE BEHAVIORS BUT THE PEOPLE WHO ARE WEARING THESE THINGS AREN'T USUALLY USING THEM HE SAID AFTERWARD REAL PERVERTS DON'T WEAR LEATHER THEY WEAR SWEATERS MS DE CARLO IS FREELANCE WRITER IN NAPA VALLEY CALIF 9304120051 930412 HEARD ON THE STREET SEALY'S REVIVED ATTEMPT TO SELL JUNK BONDS MAY CAUSE SLEEPLESS NIGHTS FOR SOME ON STREET BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL GRAB YOUR FLAK JACKET THE MATTRESS MAKER IS TAKING AIM AT WALL STREET AGAIN FOR THE SECOND TIME IN 3 1/2 YEARS THE COMPANY IS PLANNING TO TRY TO SELL JUNK BONDS TO THE PUBLIC NOW RENAMED SEALY CORP AFTER ITS BESTSELLING BRAND THE COMPANY IS REEMERGING AFTER A SPECTACULAR 1989 FLOP THAT INVESTORS IN THE JUNK BOND MARKET WILL LONG REMEMBER IN TODAY'S YIELDHUNGRY ENVIRONMENT ANALYSTS THINK THE JUNKRATED OFFERING WILL FINALLY GET OFF THE GROUND BUT THEY AREN'T SURE THAT THIS IS A GOOD SIGN FOR THE JUNK BOND MARKET OVERALL BESIDES BEING THE NATION'S BIGGEST BEDDING MAKER THE CLEVELAND COMPANY HAS A NOTORIOUS HISTORY ON WALL STREET THAT BEGAN IN 1989 WHEN GIBBONS GREEN VAN AMERONGEN LP TOOK THE COMPANY PRIVATE IN A TOOPRICEY 965 MILLION LEVERAGED BUYOUT NEARLY HALF OF THE PURCHASE PRICE WAS FINANCED WITH A TEMPORARY BRIDGE LOAN FROM FIRST BOSON CORP ITS INVESTMENT BANKER WHEN GIBBONS GREEN TRIED TO SELL JUNK BONDS TO REPAY THE 457 MILLION LOAN FROM FIRST BOSTON THE MARKET SUDDENLY SLAMMED SHUT IT WAS A MILESTONE EVENT THAT JOLTED PRICES AND MARKED THE BEGINNING OF A SUBSEQUENT COLLAPSE IN THE JUNK BOND MARKET THAT LASTED NEARLY TWO YEARS THE LOAN THEN BECAME ONE OF THE MANY HUNG UP BRIDGES THAT WALL STREET COULDN'T REFINANCE PROMPTING FIRST BOSTON TO TAKE SIZABLE LOANLOSS RESERVES AGAINST THE VALUE OF THE LOAN SINCE THE ORIGINAL LBO SEALY HAS BEEN RESTRUCTURED THREE TIMES AND CAME TO BE KNOWN ON WALL STREET BY THE HUMILIATING NICKNAME THE BURNING BED SEALY IS A SORE SUBJECT WITH FIRST BOSTON A UNIT OF CS FIRST BOSTON GROUP WHICH UNTIL RECENTLY HELD THE MAJORITY OF THE EQUITY IN THE BEDDING COMPANY FIRST BOSTON ALSO IS SENIOR MANAGER FOR THE NEW JUNK BOND OFFERING AND THEREFORE ISN'T IN A POSITION TO COMMENT DURING THE REGISTRATION PERIOD AN OFFERING PROSPECTUS IS DUE OUT THIS WEEK BUT IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SEALY SAID IT WILL SELL 200 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES MARKET TALK PUTS THE YIELDS ON THE NOTES BETWEEN 105 AND 115 ABOUT 45 TO 55 PERCENTAGE POINTS ABOVE THE YIELD ON 10YEAR TREASURY NOTES THE OFFERING IS EXPECTED TO BE CLOSELY WATCHED BY INVESTORS AND ANALYSTS SOME OF WHOM WORRY THAT THE APPEARANCE OF SEALY COULD BE A BAD OMEN FOR THE CURRENTLY HEALTHY JUNK BOND MARKET WHEN WE START TO SEE COMPANIES RESURFACE IN THE MARKET THAT HAVE HAD TROUBLE SELLING BONDS IN THE PAST IT'S TIME TO TAKE A REALITY CHECK SAID KINGMAN PENNIMAN AN EXECUTIVE VICE PRESIDENT AT DUFF & PHELPS INVESTMENT RESEARCH A UNIT OF THE CHICAGOBASED CREDIT RATING SERVICE OF COURSE SEALY IS STRONGER FINANCIALLY THAN IT WAS THE LAST TIME IT TRIED TO SELL JUNK BONDS ITS CASH FLOW TODAY IS ABOUT 22 TIMES INTEREST COSTS UP FROM LESS THAN ONE TIMES IN LATE 1989 CURRENTLY TOTAL DEBT AS A PORTION OF SEALY'S CAPITAL STRUCTURE IS 72 DOWN FROM CLOSE TO 100 BACK IN THE OLD OHIO MATTRESS DAYS MOREOVER AN INCREASE IN HOUSING SALES HAS PROVIDED MUCHNEEDED RELIEF FOR THE NATION'S FURNITURE COMPANIES INCLUDING SEALY WHICH SAW REVENUE RISE 45 TO 650 MILLION IN THE FISCAL YEAR THROUGH NOVEMBER 1992 AND TOTAL DEBT FELL TO 4435 MILLION IN NOVEMBER FROM 4956 MILLION A YEAR EARLIER NET EARNINGS WERE 10 MILLION IN THE LATEST FISCAL YEAR COMPARED WITH A LOSS OF 156 MILLION A YEAR EARLIER BUT WHAT BOTHERS MR PENNIMAN IS THAT SEALY WILL USE THE BOND OFFERING PROCEEDS TO PAY OFF FIRST BOSTON WHICH HOLDS 1368 MILLION OF 124 SENIOR SUBORDINATED NOTES PROCEEDS ALSO WILL BE USED TO REDUCE BANK DEBT ON WHICH SEALY IS PAYING INTEREST RATES OF ABOUT 75 TO MR PENNIMAN THE FACT THAT SEALY IS USING THE HIGH YIELD MARKET TO PROVIDE EXIT STRATEGIES FOR INVESTORS RATHER THAN REFINANCING TO FURTHER REDUCE INTEREST COSTS AS SO MANY OTHER CORPORATIONS ARE DOING THESE DAYS MAY MEAN THAT JUNKMARKET OFFERINGS ARE GETTING A BIT TOO SPECULATIVE BARBARA WEDELSTAEDT ANOTHER DUFF & PHELPS ANALYST ESTIMATES THAT SEALY'S CASH INTEREST EXPENSES WILL RISE BY 15 MILLION AFTER ITS OFFERING EVEN THOUGH AVERAGE COUPON PAYMENTS WILL BE LOWER THAT'S BECAUSE NOTES HELD BY FIRST BOSTON ARE PAYMENTINKIND SECURITIES WHICH PAY INTEREST IN THE FORM OF ADDITIONAL NOTES RATHER THAN CASH COMPANIES THAT ISSUE THEM OFTEN DO SO BECAUSE CASH IS TIGHT DUFF & PHELPS THINKS INVESTORS AREN'T DEMANDING HIGH ENOUGH YIELDS TO COMPENSATE THEM FOR THE ADDED RISK THEY'RE TAKING ON TO BUY BONDS OF COMPANIES SUCH AS SEALY THAT WILL BE MAKING HIGHER INTEREST PAYMENTS ANALYSTS BELIEVE THE NOTES WILL BE RATED SINGLEB ABOUT AS LOW AS YOU CAN GO ON THE CREDIT RATING SCALE AND STILL HAVE A STRONG CHANCE OF ATTRACTING BUYERS THE BONDS OF COMPANIES RATED TRIPLEC AND BELOW ARE MUCH TOUGHER TO SELL FOR FIRST BOSTON A SUCCESSFUL JUNK BOND OFFERING BY SEALY WILL CLOSE THE BOOKS ON A HARROWING CHAPTER FIRST BOSTON INITIALLY HELD WHAT WAS SUPPOSED TO BE A SHORTTERM 457 MILLION BRIDGE LOAN AND A SMALL EQUITY STAKE BUT WHEN THE MARKET SHUT SEALY OUT FIRST BOSTON HAD TO EXTEND THE LOAN AND ABSORB MORE AND MORE OF THE EQUITY ACQUIRING A 40 EQUITY STAKE IN EARLY 1990 AND MORE LATER FIRST BOSTON FINALLY SOLD ITS 94 INTEREST IN THE BEDDING COMPANY FOR 250 MILLION IN FEBRUARY THE CHICAGO INVESTMENT FIRM ZELL/CHILMARK FUND LP GOT NEARLY 89 AND BANKERS TRUST NEW YORK WOUND UP WITH 5 THE REMAINING 6 OF SEALY CONTINUES TO BE HELD BY MANAGEMENT AND A GROUP LED BY GIBBONS GREEN'S SUCCESSOR COMPANY GIBBONS GOODWIN VAN AMERONGEN IF SEALY RETIRES THE 1368 MILLION IN NOTES FIRST BOSTON HAS TODAY DUFF & PHELPS FIGURES FIRST BOSTON WILL HAVE ACCUMULATED LOSSES OF ABOUT 70 MILLION ON THE FOURYEAR ORDEAL INVESTMENT BANKERS FAMILIAR WITH THE DEAL HOWEVER SAY THAT FIRST BOSTON ACTUALLY COMES OUT A LITTLE AHEAD WHEN YOU ADD INTEREST RECEIVED ON THE BRIDGE LOAN AND OTHER NOTES AND WHEN YOU INCLUDE FEES THAT FIRST BOSTON RECEIVED TO RESTRUCTURE THE ORIGINAL TRANSACTION 9304120050 930412 WORK & FAMILY BY SUE SHELLENBARGER FLEXIBILITY BECOMES A ONEWAY STREET FOR MANY WORKERS WITH EMPLOYERS REAPING ALL THE BENEFITS FLEXIBLE SCHEDULING HAS LONG BEEN A GOAL FOR MANY EMPLOYEES SEEKING TO BALANCE WORK AND FAMILY DUTIES BUT IN A TREND TOWARD JUSTINTIME STAFFING MORE EMPLOYERS ARE CHANGING WORKERS' HOURS ON SHORT NOTICE OR DEMANDING OPENENDED SCHEDULES OFTEN AT GREAT COST TO FAMILIES MANY EMPLOYERS HAVE TAKEN FLEXIBILITY AND TWISTED IT AROUND INTO ANOTHER FORM OF EMPLOYEE ABUSE SAYS BETH SHULMAN AN INTERNATIONAL VICE PRESIDENT OF THE UNITED FOOD AND COMMERCIAL WORKERS SHE SEES A HUGE INCREASE IN DEMANDS FOR FLEXIBILITY IN THE FOOD NURSINGHOME AND BANKING INDUSTRIES BANK OF AMERICA BRANCHES HAVE INCREASED THEIR RELIANCE ON HOURLY PARTTIMERS WHOSE SCHEDULES CAN CHANGE MONTHLY BASED ON CUSTOMER TRAFFIC THE BANK SAYS EMPLOYEES MOVED TO HOURLY JOBS GET GENEROUS TRANSITION PACKAGES AND EXPANDED WORKFAMILY REFERRAL SERVICES A CHARLOTTE NC NURSING HOME USED TO ASK EMPLOYEES TO WORK WEEKENDS ON A DAY'S NOTICE AMONG OTHER THINGS TRIGGERING A STRIKE IN A COMPROMISE ACCORD EMPLOYEES NOW ARE ASKED TO WORK TWO OF EVERY THREE WEEKENDS BUT SCHEDULES ARE POSTED A MONTH IN ADVANCE THE COST FOR ELAINE PRICE A NURSING ASSISTANT IS LESS WEEKEND TIME WITH HER FAMILY AND BECAUSE HER HUSBAND GETS HOME FROM HIS NIGHTSHIFT JOB AT 630 AM ON SATURDAYS HE MUST STAY UP 24 HOURS STRAIGHT TO CARE FOR THEIR THREE YOUNG CHILDREN IF I HAD KNOWN WHEN SHE STARTED THE JOB IN 1989 THAT SO MANY SCHEDULE CHANGES WOULD BE REQUIRED MS PRICE SAYS SHE WOULD HAVE LOOKED HARDER FOR OTHER WORK OFFICIALS OF AVANTE GROUP THE HOLLYWOOD FLA OPERATOR OF THE NURSING HOME DIDN'T RETURN CALLS SEEKING COMMENT CHILDCARE SERVICES AREN'T TAILORED TO WORKERS ON EVERCHANGING SCHEDULES JO ANN TENNEY SINGLE MOTHER OF A TODDLER AND A PARTTIME RETAILING EMPLOYEE PAYS FOR FULLTIME CHILD CARE BECAUSE SHE IS ON CALL FIVE DAYS A WEEK AND CAN'T PREDICT HER HOURS WITH HALF OF HER TAKEHOME PAY GOING FOR CHILD CARE SHE HAS DECIDED SHE MUST GO FULL TIME MEANING SHE WILL BE ON CALL SEVEN DAYS PEOPLE ON ROTATING SHIFTS CAN LOSE TOUCH WITH FAMILY LIFE SAYS JANIE O'CONNOR A ST PAUL MINN CONSULTANT ON SHIFTWORK ISSUES SHE RECALLS ONE FATHER WHO SAID HIS FAMILY LOST TRACK OF MY SCHEDULE SO THEY JUST DECIDED TO DO WITHOUT ME REGULATORS BRACE FOR LOUD COMMENT ON THE NEW FEDERAL FAMILYLEAVE LAW THE LABOR DEPARTMENT WILL ISSUE INTERIM REGULATIONS BY JUNE 7 TWO MONTHS BEFORE THE LAW TAKES EFFECT BUT IT MAY TAKE UNTIL EARLY 1994 TO WRITE FINAL RULES SAYS JOHN FRASER THE DEPARTMENT'S ACTING ASSISTANT SECRETARY FOR EMPLOYMENT STANDARDS REGULATORS NEED TIME TO GET SUFFICIENT PUBLIC INPUT HE SAYS LAWYERS ALSO ARE PUZZLING OVER HOW TO INTERPRET THE LAW IN THE MORE THAN A DOZEN STATES THAT HAVE THEIR OWN PRIVATESECTOR FAMILYLEAVE LAWS IN AN UNUSUAL MOVE CONGRESS DIDN'T PREEMPT THE STATE LAWS BUT REQUIRED EMPLOYERS TO COMPLY WITH THE MORE LIBERAL PROVISIONS OF EITHER STATE OR FEDERAL LAW CREATING A REAL LAND MINE FOR MULTISTATE EMPLOYERS SAYS JANICE STANGER A CONSULTANT IN SAN FRANCISCO WITH WILLIAM M MERCER UNLIKE THE FEDERAL LAW FOR INSTANCE CALIFORNIA'S LAW DOESN'T COMBINE PERSONAL ILLNESS WITH FAMILY ILLNESS IN DEFINING THE TIME OFF PERMITTED WHICH LAW IS MORE LIBERAL IS GOING TO VARY DEPENDING ON WHO IS SICK MS STANGER SAYS THE NIMBY SYNDROME NOT IN MY BACKYARD IS CROPPING UP IN A NEW FIELD CHILD CARE WHEN OTIS SPUNKMEYER INC A COOKIE MAKER CHOSE A HOME IN A QUIET NEIGHBORHOOD A MILE FROM ITS SAN LEANDRO CALIF HEADQUARTERS AS THE SITE FOR A SMALL CHILDCARE CENTER WE RAN INTO A HUGE SNAG SAYS LINDA RAWLINGS PRESIDENT AND COOWNER OF THE COMPANY THE MULFORD GARDENS IMPROVEMENT ASSOCIATION A HOMEOWNERS GROUP CONCERNED ABOUT NOISE AND TRAFFIC THE HOMEOWNERS MADE THEIR OPPOSITION TO THE CENTER CLEAR AT TWO MEETINGS WITH SPUNKMEYER REPRESENTATIVES I WAS NEVER MORE TAKEN TO TASK THAN BY THE GROUP SAYS KEN JAFFE OF INTERNATIONAL CHILD RESOURCE INSTITUTE A NONPROFIT BERKELEY CALIF CONSULTANT FOR SPUNKMEYER THE HOMEOWNERS SENT A 130SIGNATURE PETITION TO THE CITY'S ZONING BOARD SPUNKMEYER TOPPED THAT WITH 200 EMPLOYEES WHO SHOWED UP TO SUPPORT THE CENTER AT A ZONINGBOARD MEETING THE CENTER SURVIVED AND OPENED LAST MONTH BUT BOTH SIDES ARE LICKING THEIR WOUNDS TO SATISFY THE HOMEOWNERS AND THE CITY THE COMPANY CUT INITIAL ENROLLMENT TO 21 CHILDREN FROM 35 AND PAVED HALF OF THE BACKYARD PLAY AREA FOR PARKING MAKING THE CENTER LOOK MORE LIKE A BUSINESS A SPUNKMEYER SPOKESWOMAN SAYS LAURENCE NORRY HEAD OF THE HOMEOWNERS GROUP DISLIKES THE CENTER'S DISABLEDACCESS RAMPS SAYING IT LOOKS MORE LIKE AN INSTITUTION THAN A HOME OTHER COMPANIES MAY FACE SIMILAR BATTLES THOUGH NEIGHBORHOOD CHILDCARE CENTERS OFTEN RAISE REALESTATE VALUES OPPOSITION IS STILL VERY WIDESPREAD MR JAFFE SAYS TEACHER TURNOVER AT DAYCARE CENTERS IS RAMPANT WITH 70 LEAVING THEIR JOBS FROM 1988 TO 1992 SAYS THE CHILD CARE EMPLOYEE PROJECT OAKLAND CALIF A NATIONAL REGISTRY FOR CHILDCARE WORKERS IS DUE TO BEGIN OPERATING THIS FALL THE SYSTEM FROM THE NATIONAL ORGANIZATION OF CHILDCARE WORKERS ASSOCIATIONS MILWAUKEE WILL LIST EXPERIENCED WORKERS WHO PASS TRAINING AND PEER REVIEW 9304120049 930412 COMMODITIES IMPACT OF WEEK'S OPEC MEETINGS ON OIL PRICES WILL DEPEND ON PERCEPTIONS OF OUTPUT DISCIPLINE BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THIS WEEK'S MEETINGS IN MUSCAT OMAN OF OPEC AND OTHER LEADING OIL EXPORTERS WILL HAVE AN IMPACT ON OIL MARKETS BUT IT ISN'T CLEAR WHETHER PRICES MAY RISE OR FALL AS A RESULT OIL ANALYSTS SAID MUCH DEPENDS ON PERCEPTIONS OF PRODUCTION DISCIPLINE IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES OPEC'S 12 OIL MINISTERS WILL HOLD INFORMAL TALKS TONIGHT ON THEIR PRODUCTION LEVELS THEN TOMORROW THEY WILL MEET JOINTLY WITH THEIR COUNTERPARTS FROM THE SOCALLED INDEPENDENT PETROLEUM EXPORTING COUNTRIES OR IPEC TO STUDY ISSUES OF MUTUAL INTEREST SUCH AS POSSIBLE DEFENSIVE MEASURES AGAINST NEW ENERGY TAXES PROPOSED IN EUROPE AND THE US MOST OF THE WORLD'S OIL RESERVES WILL BE REPRESENTED AT THE MEETING TOMORROW INCLUDING TEXAS WHICH IS SAID TO BE SENDING A REPRESENTATIVE 25 OF THE WORLD'S MAIN OIL PRODUCERS WILL BE ATTENDING SHOULD THEY AGREE ON A RESPONSE TO THE TAX ISSUE SUCH AS PRODUCTION CURBS OR A LEVY OF OILEXPORT TAXES PRICES MAY RISE BUT LITTLE EXCEPT TALK IS EXPECTED FROM EITHER MEETING STILL TONIGHT'S SESSION BY OPEC'S OIL MINISTERS HAS DRAWN THE FULL ATTENTION OF OILMARKET PARTICIPANTS THE OPEC MEETING IS ONE OF THE THINGS HELPING TO KEEP THE OIL MARKET RELATIVELY FIRM SAID CAROLINE CAMPBELL A TRADER WITH SMITH BARNEY HARRIS UPHAM EUROPE PRICES DID FALL SOME LAST WEEK HOWEVER AFTER KUWAIT REITERATED A THREAT TO PRODUCE ABOVE ITS QUOTA IF OTHERS CONTINUE TO CHEAT ON THEIR ALLOTMENTS OIL MARKETS WERE CLOSED FOR GOOD FRIDAY BUT LIGHT CRUDE OIL FOR MAY DELIVERY WAS DOWN 15 CENTS THURSDAY TO SETTLE AT 2022 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE IN FEBRUARY THE OPEC MINISTERS SET A FOURMONTH PRODUCTION CEILING OF 236 MILLION BARRELS A DAY EFFECTIVE MARCH 1 WHICH ALLOWED KUWAIT A QUOTA OF 16 MILLION BARRELS A DAY THE EMIRATE COMPLAINED AT CUTTING BACK FROM TWO MILLION BARRELS A DAY BUT SAID IT WOULD ADHERE TO THE QUOTA SO LONG AS OTHERS DIDN'T OVERPRODUCE OPEC STILL IS PRODUCING SOME 800000 BARRELS A DAY MORE THAN THE CEILING BUT ITS TOTAL OUTPUT AS PREVIOUSLY REPORTED HAS COME DOWN SHARPLY TO AROUND 244 MILLION BARRELS A DAY FROM THE FEBRUARY LEVEL OF SOME 254 MILLION BARRELS A DAY STILL SEVERAL COUNTRIES PARTICULARLY IRAN AND NIGERIA ARE GENERALLY CITED AS PRODUCING MORE THAN THEIR QUOTAS SUCH REPORTS HAVE BROUGHT VOCIFEROUS DENIALS FROM IRAN GHOLAMREZA AGHAZADEH THE IRANIAN OIL MINISTER LAST WEEK ADVISED ALIRIO PARRA THE VENEZUELAN OIL MINISTER WHO IS ALSO OPEC'S PRESIDENT THAT IRAN WOULD PROVIDE PROOF THAT IT ISN'T PRODUCING ABOVE ITS QUOTA IN TURN MR AGHAZADEH SAID HE WANTED EVIDENCE FROM OTHERS THEY WERE ADHERING TO QUOTAS MR PARRA WHO WAS IN LONDON LAST WEEK FOR THE ANNUAL CONFERENCE OF THE CENTRE FOR GLOBAL ENERGY STUDIES ALSO RECEIVED A LETTER FROM KUWAIT'S OIL MINISTER ABOUT THE REPORTED QUOTA CHEATING BY OTHERS AN OUTPUT COMPLIANCE COMMITTEE APPOINTED BY MR PARRA AND MADE UP OF OPEC SECRETARYGENERAL SUBROTO AND THE LIBYAN AND QATARI OIL MINISTERS MET IN DOHA QATAR YESTERDAY TO REVIEW PRODUCTION PRIOR TO TODAY'S MEETING OF ALL 12 MINISTERS IN MUSCAT IN DOHA THE COMMITTEE ISSUED A STATEMENT AFTER THE MEETING WHICH CITED A SIGNIFICANT REDUCTION IN OPEC'S OUTPUT BUT NOTED THERE WERE SOME VARIATIONS BETWEEN FIGURES PROVIDED BY MEMBER COUNTRIES AND REPORTED BY OTHER SOURCES MEANWHILE IRAN AGAIN EMPHATICALLY DENIED IT HAD BEEN PRODUCING MORE THAN ITS QUOTA OF 33 MILLION BARRELS A DAY IN A STATEMENT ISSUED IN TEHRAN THE OIL MINISTRY CALLED ALLEGATIONS OF IRANIAN OVERPRODUCTION HASTY CONCLUSIONS AND JUDGMENTS THIS SETS THE STAGE NEVERTHELESS FOR NEW WORRIES IN THE INDUSTRY THAT OPEC'S PRODUCTION DISCIPLINE IS BEGINNING TO DETERIORATE AGAIN MANY SUSPECT OPEC'S CURRENT OUTPUT MAY BE ITS LOWEST FOR THE SECOND QUARTER NORMALLY A SEASONABLYWEAK PERIOD FOR OIL DEMAND IF YOU WERE GOING TO CHART OPEC PRODUCTION AT THIS POINT YOU WOULD HAVE TO SHOW IT GOING SLIGHTLY HIGHER SAID SHAHROKH NIKKHAH LONDONBASED EXECUTIVE VICE PRESIDENT OF REFCO INC NOTHING SUBSTANTIAL CAN BE ACHIEVED AT THIS MEETING HE ADDED AND THAT MEANS THE MARKET IS GOING TO BE DISAPPOINTED BUT SOME ANALYSTS SUGGESTED THAT IF OPEC CAN ONLY REAFFIRM ITS INTENT TO HOLD OUTPUT AT NEAR THE CURRENT LEVEL PRICES SHOULD REMAIN RELATIVELY FIRM IN THE NEARTERM THE OIL MARKET OUTLOOK IS STABLE TO MODERATELY POSITIVE SAID WILLIAM RANDOL A SALOMON BROTHERS INTERNATIONAL OIL ANALYST WHO WAS HERE TO ATTEND THE ENERGY CONFERENCE ADDRESSED BY OPEC PRESIDENT PARRA CONSTANTINE FLIAKOS A SENIOR OIL ANALYST AT MERRILL LYNCH & CO WHO WAS ALSO HERE FOR THE CONFERENCE ESTIMATED SECONDQUARTER DEMAND FOR OPEC'S OIL TO BE 24 MILLION TO 245 MILLION BARRELS A DAY THERE IS SOME CHEATING IN OPEC BUT WE WON'T HAVE EXCESS SUPPLIES SAID MR FLIAKOS IN INTERVIEWS MR PARRA AGREED HE SAID REPORTS FROM INDIVIDUAL OPEC MEMBERS ON THEIR PRODUCTION FOR THE FIRST WEEK OF THIS MONTH SHOULD BE AVAILABLE BY THE TIME THE MINISTERS MEET TONIGHT MANY OF THE MEMBER COUNTRIES ARE COMING TO GRIPS WITH REALITY HE ADDED AS A RESULT HE SAID PRODUCTION IN APRIL SHOULD DECLINE FROM THE MARCH LEVEL 9304120048 930412 BUSINESS BRIEF CENTENNIAL GROUP INC REORGANIZATION PLAN IS FILED WITH US BANKRUPTCY COURT CENTENNIAL GROUP INC ORANGE CALIF FILED A PLAN OF REORGANIZATION AND DISCLOSURE STATEMENT WITH A US BANKRUPTCY COURT IN CALIFORNIA IN A NEWS RELEASE THE REAL ESTATE COMPANY SAID FOLLOWING A HEARING ON THE DISCLOSURE STATEMENT PRESENTLY SCHEDULED FOR MAY 26 THE PLAN AND THE DISCLOSURE STATEMENT WILL BE DISSEMINATED TO CREDITORS FOR THEIR APPROVAL BY THE REQUISITE VOTE AIMING FOR A HEARING ON THE CONFIRMATION OF THE PLAN IN JULY AND EMERGENCE FROM CHAPTER 11 WITHIN A REASONABLE TIME THEREAFTER THE COMPANY FIRST SOUGHT CHAPTER 11 PROTECTION DEC 13 1991 9304120047 930412 INFLATION DEBATE HEATS UP AS COMMODITY PRICES RISE BY JEFFREY TAYLOR AND STEVEN E LEVINGSTON STAFF REPORTERS OF THE WALL STREET JOURNAL TRYING TO MAKE SENSE OF THE INFLATION PICTURE DON'T LOOK TO THE FINANCIAL MARKETS FOR MUCH GUIDANCE COMMODITY PRICES SAY INFLATION IS REARING ITS HEAD AGAIN THE BOND MARKET CAN'T MAKE UP ITS MIND AND STOCKS AGREE WITH BONDS ANALYSTS AREN'T ANY MORE HELPFUL ALTHOUGH THE INFLATION DEBATE AMONG ECONOMISTS AND MARKET STRATEGISTS IS HEATING UP DESPITE LAST WEEK'S GENERALLY GOOD NEWS THAT NEITHER PRODUCER NOR CONSUMER PRICES ARE CLIMBING FAST THE PESSIMISTS ARE JUST AS VOCIFEROUS AS THE OPTIMISTS THERE ISN'T ANY QUESTION THAT COMMODITY PRICES WHICH MANY ECONOMISTS REGARD AS HYPERSENSITIVE TO SHIFTS IN THE ECONOMIC CYCLE ARE HINTING THAT MILD INFLATION MAY SOON RETURN TO THE ECONOMY BUT THE BOND AND STOCK MARKETS ARE MUCH LESS CERTAIN JUST LOOK AT THE ERRATIC BEHAVIOR OF THE BOND MARKET IN RECENT WEEKS LAST WEEK GOOD INFLATION NEWS SPARKED A POWERFUL BOND MARKET RALLY BUT IN THE PRIOR TWO WEEKS BAD INFLATION DATA BATTERED BONDS ALTHOUGH THE STOCK MARKET IS FLASHING SOME EARLY WARNING SIGNALS THROUGH RISING PRICES OF NATURALRESOURCE STOCKS SUCH AS CHEMICALS COPPER OIL AND GOLD MOST MONEY MANAGERS AND ANALYSTS SHRUG OFF INFLATION WORRIES MANY ECONOMISTS LOOK TO COMMODITY PRICES FOR THE EARLIEST WARNINGS OF INFLATION GRADUAL UPWARD TRENDS IN COMMODITY PRICES HISTORICALLY HAVE PRECEDED SHIFTS IN THE ECONOMIC CYCLE IN FACT SOME MARKET ANALYSTS POINT TO A HISTORIC PATTERN IN WHICH YEARLONG UPWARD COMMODITY PRICE TRENDS HAVE TENDED TO PREVIEW SIMILARLY PROTRACTED DOWNWARD TRENDS IN BOND PRICES ONE OF THE MOST CLOSELY WATCHED BAROMETERS OF INFLATION IS THE JOURNAL OF COMMERCE INDEX OF 18 RAW INDUSTRIAL COMMODITIES IT IS GRADUALLY RISING SINCE DECEMBER 1991 WHEN THE JOC INDEX REACHED A LOW OF 929 IT HAS SURGED TO A MIDMARCH HIGH OF 1012 BEFORE SAGGING LUMBER PRICES PULLED IT DOWN TO LAST WEEK'S AVERAGE OF 977 THERE ARE ALWAYS ADJUSTMENTS IN UPWARD TRENDS BUT THEY DON'T CHANGE THE ESSENTIAL MESSAGE SAYS ANIRVAN BANERJI RESEARCH ECONOMIST AT COLUMBIA UNIVERSITY'S CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH WHAT THE JOC INDEX IS TELLING US IS THAT THERE WILL BE SOME MILD INFLATIONARY UPTURN IN THE MONTHS AHEAD IN ADDITION TO THE GRADUAL UPWARD TREND VISIBLE IN THE JOURNAL OF COMMERCE COMMODITY INDEX THE COMMODITY RESEARCH BUREAU'S INDEXES OF COMMODITY CASH AND FUTURES PRICES RECENTLY HAVE SHOWN SIGNS OF LIFE THE CRB CASH INDEX HAS RISEN TO ABOUT 21013 LAST WEEK FROM A SIXMONTH LOW OF 19838 ON FEB 8 SOME ANALYSTS ALSO POINT TO RECENT GAINS IN GOLD PRICES AS EVIDENCE OF GROWING INFLATION ANXIETY LAST WEEK GOLD ROSE ABOVE 340 AN OUNCE FOR THE FIRST TIME IN FIVE MONTHS DEFYING BEARS WHO FORESAW CONTINUING PRICE WEAKNESS IN THE PRECIOUS METAL THE CRB AND GOLD ARE BOTH GIVING EVIDENCE THAT THEIR LONGRUNNING DOWN TRENDS ARE IN A BOTTOMING PHASE SAYS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH WHAT WE'RE SEEING IS AN INFLATION WATCH WE MAY SEE SOME MILD INFLATION PICKUP ESPECIALLY LATER IN THE YEAR THAT ANXIETY IS LIKELY TO GROW RAPIDLY IF GOLD AND THE CRB CLIMB ABOVE TWO IMPORTANT LEVELS FOR THE CRB THE IMPORTANT LEVEL IS 215 FOR GOLD IT'S 350 AN OUNCE AND FOR THE JOC INDEX IT IS ABOUT 103 MANY TRADERS WOULD INTERPRET SURGES TO THOSE LEVELS AS OMINOUS SIGNS THE CRB COMMODITIES INDEXES ARE WEIGHTED HEAVILY TOWARD AGRICULTURAL PRODUCTS AND ARE SEEN BY SOME TRADERS AS A HARBINGER OF POSSIBLE FOODPRICE INFLATION THE CRB INDEXES HAVE BEEN SUPPORTED IN RECENT WEEKS BY THE RELATIVELY HIGH PRICES OF LIVESTOCK AND SUGAR AMONG OTHER PRODUCTS BASED ON SUCH EVIDENCE MANY ECONOMISTS AND MARKET STRATEGISTS AGREE THAT HIGHER INFLATION IS LIKELY EARLIER HOPES THERE MIGHT BE A DECLINE IN CONSUMER PRICE INFLATION ARE GONE SAYS JOHN LIPSKY CHIEF ECONOMIST FOR SALOMON BROTHERS INC EVEN TO HOLD ONTO A 3 INFLATION RATE SEEMS UNLIKELY YET THEY ALSO STRESS THAT ANY RISE IN PRICES WILL BE MODEST COMPARED WITH INFLATIONARY TRENDS IN PREVIOUS RECOVERIES PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SEES INFLATION CLIMBING AT A RATE OF 325 TO 35 THIS YEAR ALTHOUGH SUCH A RATE SOUNDS MODEST MR CANELO WARNS THAT UNLESS INVESTORS RECOGNIZE THE POTENTIAL FOR INFLATIONARY ACTIVITY THE MARKETS COULD GET INTO TROUBLE AS PRICES RATCHET SLOWLY HIGHER IF WE'RE TOO OPTIMISTIC ABOUT INFLATION THE MARKETS ARE LIABLE TO BE SHAKEN BY WHAT I CONSIDER NORMAL INFLATION NUMBERS FOR THIS RECOVERY HE SAYS MR CANELO ARGUES AN UNREALISTIC BELIEF THAT INFLATION WAS DEAD DROVE THE BOND MARKET'S POWERFUL RALLY FROM NOVEMBER TO MARCH BUOYANT BOND TRADERS PUSHED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE TO 672 ON MARCH 8 THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 THAT RALLY SET THE STAGE FOR A BIG DROP IN BOND PRICES ON MARCH 26 WHEN A STRONGERTHANEXPECTED REPORT ON GOODS AND SERVICES OUTPUT IN THE FOURTH QUARTER RAISED THE SPECTER OF INFLATION THOSE FEARS WERE FOLLOWED APRIL 2 BY AN UNEXPECTED 05 RISE IN AVERAGE HOURLY EARNINGS IN FEBRUARY WHICH DROVE THE LONGBOND YIELD ABOVE 7 FOR FIRST TIME IN SIX WEEKS YET THURSDAY'S REPORT SHOWING WHOLESALE PRICES IN MARCH RISING A SCANT 01 WHEN FOOD AND FUEL ARE EXCLUDED BROUGHT BOND PRICES REBOUNDING MERRILY BACK TO NEAR THEIR RECENT HIGHS A POSITIVE REPORT ON MARCH CONSUMER PRICES FOLLOWED FRIDAY AND MAY GIVE AN ADDITIONAL BOOST TO BOND PRICES EARLY THIS WEEK RISING COMMODITY PRICES ARE BEING REFLECTED IN THE STOCK MARKET AS INVESTORS THERE BEGIN TO BET ON INFLATION MR CANELO SAYS HIS INDEX OF SEVEN BELLWETHER CYCLICAL COMMODITY STOCKS HAS SOARED 20 SINCE LAST OCTOBER WHILE STANDARD & POOR'S BASIC INDUSTRY SECTOR HAS CLIMBED JUST 11 AT THE SAME TIME THE TORONTO AND AUSTRALIAN STOCK MARKETS BOTH OF WHICH LIST A PREPONDERANCE OF NATURAL RESOURCES CONCERNS HAVE GAINED ABOUT 7 IN LOCAL CURRENCY TERMS WHEN INTERNATIONAL INVESTORS TAKE AN INTEREST IN THESE SOCALLED NATURAL RESOURCES MARKETS THAT REFLECTS A SENSITIVITY TO INFLATION ON A WORLDWIDE BASIS MR CANELO SAYS BEYOND THAT MR CANELO NOTES THAT THE NATION'S MONEY SUPPLY IS EXPANDING CONSUMER AND WHOLESALE PRICES ARE RISING EVEN IF SLOWLY AND THE ECONOMY WILL SOON BE SADDLED WITH NEW TAXES INCLUDING WHAT PROBABLY WILL BE AN EXPENSIVE HEALTHCARE REFORM PROGRAM ALL OF THESE DEVELOPMENTS HE CONCLUDES WILL CONTRIBUTE TO INFLATIONARY PRESSURES BUT PLENTY OF ANALYSTS AREN'T BUYING THE INFLATION ARGUMENTS THESE INFLATION FEARS ARE HEAT LIGHTNING NOT REAL LIGHTNING JUST THAT FLICKERING ON THE HORIZON THAT DOESN'T TURN INTO A STORM SAYS C FRAZIER EVANS SENIOR ECONOMIST AT COLONIAL INVESTMENT SERVICES IN BOSTON MR EVANS DISMISSES THE RECENT ECONOMIC INDICATORS POINTING TO STRONGER INFLATION AS MERE SEASONAL BLIPS THAT WILL LEVEL OUT LATER THIS YEAR LIKE MANY OTHER ECONOMISTS HE SINGLES OUT UNIT LABOR COSTS AS THE MAIN FACTOR IN MEASURING INFLATION PRESSURES THOSE COSTS AREN'T RISING FAST ENOUGH TO WARRANT MUCH CONCERN ABOUT INFLATION HE SAYS OPTIMISTS ALSO ARGUE THAT THE BOND MARKET'S BAD CASE OF NERVES IN RECENT WEEKS WAS AN OVERREACTION THE BOND MARKET IS PARANOID ABOUT INFLATION SAYS SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS IT PICKS UP EVERY BIT OF BAD NEWS IT CAN FIND BUT THIS TIME IT WILL BE PROVEN WRONG ANYBODY WHO IS WORRIED ABOUT RISING PRICES NEED ONLY LOOK TO THE RECENT ANNOUNCEMENT BY PHILIP MORRIS COS THAT IT WILL CUT PRICES OF ITS MARLBORO BRAND CIGARETTES THAT SHOUTS VERY LOUDLY THAT WE HAVE A DIFFERENT ENVIRONMENT FROM THE 1980S SAYS JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG CONSUMERS HAVE RELEARNED THEIR SHOPPING BEHAVIOR AND ARE NOT WILLING TO PAY PREMIUM PRICES ANYMORE INVESTORS BEAT UP NOT ONLY PHILIP MORRIS SHARES BUT ALSO STOCKS OF OTHER BRANDNAME CONSUMER GOODS COMPANIES IN THE EXPECTATION THAT SIMILAR PRICE CUTTING WILL SPREAD THROUGHOUT THE FOOD BEVERAGE AND TOBACCO INDUSTRIES 9304120046 930412 BUSINESS BRIEF FORD MOTOR CO ASSOCIATES CORP COMPLETES PURCHASE OF ALLIED FINANCE ASSOCIATES CORP OF NORTH AMERICA DALLAS SAID IT COMPLETED THE ACQUISITION OF ALLIED FINANCE CO A UNIT OF REPUBLIC FINANCIAL SERVICES WHICH IN TURN IS A UNIT OF SWITZERLAND'S WINTERTHUR GROUP TERMS WEREN'T DISCLOSED ASSOCIATES IS PART OF THE FINANCIAL SERVICES GROUP OF FORD MOTOR CO DEARBORN MICH ALLIED FINANCE IS A DALLAS CONSUMER FINANCE COMPANY WITH ASSETS OF ABOUT 165 MILLION OPERATING 70 OFFICES IN TEXAS TENNESSEE LOUISIANA MISSISSIPPI AND ALABAMA ALLIED FINANCE MAKES HOME EQUITYSECURED AND DIRECT PERSONAL LOANS AND PURCHASES INSTALLMENT SALES CONTRACTS FROM RETAILERS 9304120045 930412 TECHNOLOGY UNCLE SAM'S PROGRESS HIGHTECH PROVES TO BE HIGH RISK COMPUTER GLITCHES DISCOVERED IN WIDE ARRAY OF AGENCIES TOP A LIST OF COSTLY ERRORS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THINK YOUR COMPANY HAS TROUBLE GETTING ITS COMPUTER SYSTEM TO DO WHAT YOU WANT IT TO DO TAKE A LOOK AT THE FEDERAL GOVERNMENT THE STATE DEPARTMENT 300 MILLION OF HARDWARE AND ASSOCIATED SOFTWARE IS BECOMING VULNERABLE TO FAILURE IN THE NEXT FEW YEARS THE DEFENSE DEPARTMENT AT RISK UNAUTHORIZED ACCESS OR MISUSE OF SENSITIVE DEFENSE DATA THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AT RISK 200 MILLION TO 500 MILLION REPRESENTING POTENTIAL OVERPAYMENTS TO CONTRACTORS THROUGH ERRONEOUS OR FRAUDULENT BILLINGS THESE CANDID SELFEVALUATIONS ARE TUCKED AWAY IN A SECTION OF THE FEDERAL BUDGET FOR FISCAL YEAR 1994 CALLED PROGRESS REPORT ACTUALLY THE SECTION IS A COMPILATION OF SELFCRITICISMS BY FEDERAL AGENCIES REQUIRED BY THE WHITE HOUSE BUDGET OFFICE AS PART OF ITS HIGH RISK PROGRAM THESE PROGRAMS ARE SUCH HOT SOUP THAT THEY WARRANT THE PERSONAL ATTENTION OF THE AGENCY HEAD AND CONGRESS LAST YEAR THE BUDGET OFFICE SAID THAT COMPUTER GOOFUPS WERE THE SINGLE BIGGEST PROBLEM IN ITS HIGHRISK PROGRAM ACCOUNTING FOR ONETHIRD OF THE 2 BILLION THE WHITE HOUSE WANTED TO SPEND FIXING THINGS UP THIS YEAR THE AGENCY DIDN'T PUBLISH A SIMILAR RANKING BUT COMPUTER PROBLEMS STILL DOMINATE I DON'T KNOW IF THE GOVERNMENT IS WORSE AT USING COMPUTERS THAN PRIVATE INDUSTRY BUT IN INDUSTRY THEY'RE HIDDEN WELL SAYS ROBERT DORNAN VICE PRESIDENT AT FEDERAL SOURCES INC A COMPUTER CONSULTING COMPANY IN MCLEAN VA IN THE FEDERAL BUDGET THE PROBLEMS ARE THERE FOR ALL TO SEE TAKE THE GENERAL SERVICES ADMINISTRATION WHICH IS SUPPOSED TO OVERSEE THE PURCHASE OF COMPUTER SYSTEMS THROUGHOUT THE GOVERNMENT IT WILL SPEND 99 MILLION OVERALL ON ITS OWN COMPUTERS AND COMMUNICATIONS IN THE COMING FISCAL YEAR BUT SAYS IT MAY HAVE MADE SUBSTANTIAL INVESTMENTS IN SYSTEMS WHICH MAY NOT PERFORM AS INTENDED THE BUDGET OFFICE DOESN'T MAKE THE GSA SAY WHY IT WOULD DO SUCH A THING BUT IT DOES REQUIRE THE AGENCY TO PROPOSE SOLUTIONS THE GSA'S ANSWER ESTABLISH TECHNOLOGY STANDARDS USE EXPERIENCED MANAGERS AND SPEND ROUGHLY 800000 TO DO ALL THIS THE BUDGET OFFICE ASSIGNS THAT ANSWER A TWO WHICH IN BUDGET LINGO MEANS ACTIVE EFFORTS UNDER WAY TO IMPROVE PROGRESS MOST OF THE COMPUTER PROBLEMS RATE A TWO BUT AT THE STATE DEPARTMENT THINGS ARE A BIT WORSE A MAINFRAME PURCHASE THERE IS ONE YEAR BEHIND SCHEDULE AND A NEW COMPUTER POLICY IS TWO YEARS OVERDUE THAT WARRANTS THE BUDGET OFFICE'S LOWEST RANKING A THREE MEANING RESERVATIONS ABOUT ADEQUACY OF PROGRESS AND/OR PLANS 9304120044 930412 LETTERS TO THE EDITOR WE DON'T NEED A BIG HUG DEBRA BENTON MISSED THE POINT IN HER MARCH 22 MANAGER'S JOURNAL HANDSON APPROACH CAN GET STICKY EDITORIAL PAGE THE POINT IS THAT THERE IS NO APPROPRIATE BUSINESS TOUCH BEYOND THE SIMPLE HANDSHAKE AMERICA IS A MULTICULTURAL SOCIETY SIGNIFICANT NUMBERS OF AMERICANS HAVE BEEN RAISED IN COMPONENT CULTURES IN WHICH ONE TOUCHES ONLY BLOOD RELATIVES AND PEOPLE ONE INTENDS TO SLEEP WITH THOSE OF US WITH THIS BACKGROUND AREN'T COLD AND UNFEELING AS SOME WOULD ASSERT BUT WE ARE ABSOLUTELY OFFENDED BY THE HUGGERS AND BUSINESS TOUCH ADVOCATES SUCH AS PRESIDENT CLINTON AND MS BENTON WE USED TO HAVE BACKSLAPPERS NOW WE HAVE HUGGERS BOTH ARE OFFENSIVE GOOD MANNERS KEEP MOST OF US FROM DOING MORE THAN SIMPLY AVOIDING FUTURE CONTACT WHEN WE ARE OFFENDED IN THIS WAY HOWEVER AS MS BENTON DISCOVERED OTHERS FILE LAWSUITS BOTH SEXES OUGHT TO STICK TO HANDSHAKES AND GET ON WITH BUSINESS MS BENTON'S PIECE ABOUT SEXUAL HARASSMENT IS SERIOUSLY FLAWED SHE WAS ACCUSED OF SEXUALLY HARASSING A MAN AND HER RESPONSE WAS TO WRITE A NOTE OF APOLOGY ASSURING THE MAN AND HIS WIFE THAT I HAD NO INTEREST IN HIM WHATSOEVER WHETHER MS BENTON HAD AN INTEREST IN THE MAN IS ENTIRELY IRRELEVANT TO SEXUAL HARASSMENT HARASSMENT IS NOT THE RESULT OF AFFECTION OR ATTRACTION IT IS ROOTED IN A DESIRE TO DOMINATE OR ABUSE IF SHE HUMILIATED THE MAN IT MAKES NO DIFFERENCE WHETHER OR NOT SHE ACTUALLY INTENDED TO PURSUE A RELATIONSHIP WITH HIM BUT WHAT IS EVEN MORE INTERESTING IS MS BENTON'S EMPHASIS THAT SHE HAD NO INTEREST IN HIM WHATSOEVER OBVIOUSLY THIS WAS MEANT AS AN INSULT TO THE MAN JUST AS A RAPIST CANNOT DEFEND HIMSELF BY POINTING OUT THAT HIS VICTIM IS UGLY MS BENTON CANNOT DEFEND HERSELF BY ATTACKING HER VICTIM'S SEXUAL ATTRACTIVENESS A WRITER OF MS BENTON'S TALENT SURELY COULD HAVE FOUND A LESS DEMEANING WAY TO EXPRESS HER FEELINGS THE HOSTILITY IN HER APOLOGY MAKES ME QUESTION THE OBJECTIVITY OF THE REST OF HER ARTICLE 9304120043 930412 GLOBAL VIEW FACING THE REALITIES OF UN PEACEKEEPING BY GEORGE MELLOAN WITH ALLIED FORCES NOW AUTHORIZED BY A UNITED NATIONS SECURITY COUNCIL RESOLUTION TO ENFORCE A NOFLY ZONE OVER BOSNIA THERE IS WIDESPREAD PUBLIC SATISFACTION THAT THE UN IS FINALLY DOING SOMETHING ABOUT THE WAR IN THAT TROUBLED LAND UNDER THE RULES OF ENGAGEMENT LAID DOWN BY THE SECURITY COUNCIL TWO WEEKS AGO ALLIED PLANES CAN IF NECESSARY SHOOT DOWN ANY UNAUTHORIZED AIRCRAFT THAT ENTER THE ZONE BLUNTLY THAT MEANS ANY SERBIAN MILITARY AIRCRAFT STRIKING AT BOSNIAN MUSLIMS OR DELIVERING SUPPLIES TO BOSNIAN SERBS IF THE SERBS CHALLENGE THE NOFLY ENFORCERS THE UN WILL HAVE MOVED FROM A HUMANITARIAN ROLE IN BOSNIA TO A COMBAT ROLE IT WILL BE A LIMITED COMBAT ROLE GIVEN THE FACT THAT RUSSIA'S SECURITY COUNCIL DELEGATE INSISTED THAT THE ALLIED PILOTS SHOULD NOT ATTACK SERBIAN AIRFIELDS OR UNLESS FIRED UPON SERBIAN GROUND FORCES BUT THE POTENTIAL FOR COMBAT EXISTS AND IT THUS IS A GOOD TIME TO TAKE A HARDHEADED LOOK AT UN PEACEKEEPING IT MAY BE POLITICALLY CONVENIENT TO LABEL THE PILOTS WHO TODAY WILL BEGIN POLICING THE ZONE UN BUT MOST OF THEM WILL BE AMERICANS SUPPORTED BY FRENCH AND DUTCH AIRMEN THEY WILL TAKE THEIR ORDERS FROM NATO'S SUPREME COMMANDER US GEN JOHN M SHALIKASHVILI PILOTS OF F14 AND F/A18 AIRCRAFT FROM THE CARRIER USS THEODORE ROOSEVELT IN THE ADRIATIC WILL TEAM UP WITH LANDBASED US COMBAT UNITS IN EUROPE THE RUSSIANS HAVE BARRED THE PILOTS FROM WHAT WOULD BE THEIR MOST EFFECTIVE MISSION TAKING OUT SERBIAN HEAVY WEAPONS ON THE GROUND OR PUNISHING THE SERBS FOR THEIR INVOLVEMENT SO THE PILOTS ARE NOT LIKELY TO HAVE MUCH INFLUENCE ON THE WAR DESPITE THEIR COURAGE AND SKILL THUS THE NEXT QUESTION THAT WILL CONFRONT THE US GIVEN THE WORLDWIDE PRESSURE TO DO SOMETHING TO STOP THE KILLING WILL BE WHETHER TO INSIST THAT THE BOSNIAN SERBS STOP FIGHTING AND WITHDRAW FROM SOME CONQUERED TERRITORIES UNDER TERMS OF THE VANCEOWEN PEACE PLAN IF THEY WON'T WHAT THEN OR WHAT IF NEW FIGHTING ERUPTS IN KOSOVO THE ANSWER IS THAT THE QUESTION OF SENDING IN COMBAT TROOPS WILL ARISE CANADIANS SWEDES AND OTHERS HAVE PERFORMED BRAVELY IN NONCOMBAT UN PEACEKEEPING MISSIONS AROUND THE WORLD BUT WHEN IT COMES TO THE HEAVY LIFTING OF COMBAT THE US WILL AGAIN HAVE THE LEAD ROLE INDEED WHEN YOU LOOK AROUND YOU WONDER WHO THERE WILL BE TO HELP GERMANY INSISTS IT WILL NOT SEND TROOPS TO YUGOSLAVIA BRITAIN'S PARLIAMENT PROBABLY WOULD REJECT A BRITISH ROLE FRANCE IS HEAVILY COMMITTED TO OTHER UN MISSIONS TURKEY WHILE A NATO MEMBER HAS BEEN ARBITRARILY RULED OUT AND REMARKABLY SO BECAUSE IT MIGHT BE TOO SYMPATHETIC TO THE BOSNIAN MUSLIMS ITALY IS RULED OUT AS A NEIGHBORING STATE RUSSIA NATO COMMANDERS DON'T LIKE THAT IDEA IN PART BECAUSE THE RUSSIAN ARMY IS BADLY DEMORALIZED AND CONSIDERED UNRELIABLE AND PARTLY BECAUSE RUSSIA IS SYMPATHETIC TO SERBIA THE US STILL HAS ABOUT 150000 TROOPS IN EUROPE EVEN THOUGH THE NUMBERS ARE DIMINISHING RAPIDLY BUT MANY OF THESE ARE IN ANCILLARY UNITS MOREOVER THE NEED FOR PERIODIC ROTATION MEANS THAT COMMANDERS NEED TRIPLE THE NUMBER OF COMBAT TROOPS THEY EXPECT TO HAVE IN THE FIELD AT ANY ONE TIME SO THE NUMBER OF COMBAT SOLDIERS EVEN THE US COULD FIELD IS NOT MASSIVE FURTHER US PUBLIC OPINION MIGHT CHANGE SHARPLY AGAINST DOING SOMETHING IF IT SEEMED THAT US TROOPS WERE BEING ASKED TO FIGHT A EUROPEAN WAR WITH VERY LITTLE EUROPEAN HELP THE PROFESSIONALS AT NATO WOULD LIKE A CLEARER IDEA OF WHAT THEIR OBJECTIVES ARE TO BE TAKING OUT THE HEAVY WEAPONS THAT HAVE GIVEN THE SERBS A MILITARY ADVANTAGE IS AN ACHIEVABLE OBJECTIVE ENFORCING THE ENTIRE PATCHWORK OF TERRITORIAL ALLOTMENTS ENVISIONED BY THE VANCEOWEN PEACE PLAN IS A FAR LARGER TASK NOT ONLY IS THERE A QUESTION OF HOW MANY TROOPS 200000 TO 300000 BUT ALSO OF HOW MANY YEARS THEY WOULD HAVE TO REMAIN IN PLACE GIVEN THE FACT THAT THERE HAS BEEN A UN PRESENCE IN PALESTINE FOR 45 YEARS AND THE KILLING GOES ON THAT IS NOT AN INSIGNIFICANT QUESTION FINALLY THERE IS ONE MORE KNOTTY ISSUE IS THE UN IMPRIMATUR A HELP OR HINDRANCE WHEN THE US OR NATO BECOMES INVOLVED IN PEACEKEEPING MISSIONS THERE IS POLITICAL MERIT IN MOBILIZING INTERNATIONAL BACKING AND DESERT STORM WAS A REMARKABLE MILITARY SUCCESS US FORCES WERE AT A PEAK LEVEL OF FIGHTING EFFICIENCY AND THE TERRAIN AND MISSION WERE WELLSUITED TO HIGHTECH WARFARE AERIAL STRIKES IN PARTICULAR BUT THERE ALSO WERE POLITICAL CONSTRAINTS AND IN THE END THE POLITICAL ACHIEVEMENT WAS DISAPPOINTING YET DESERT STORM SEEMS TO HAVE GIVEN THE UN DELUSIONS OF GRANDEUR FORMER UN AMBASSADOR JEANE J KIRKPATRICK WROTE IN THE LOS ANGELES TIMES RECENTLY THAT U N SECRETARYGENERAL BOUTROS BOUTROSGHALI SEEMS BENT ON MAKING HIMSELF THE WORLD'S COMMANDER IN CHIEF HE WANTS HIS OWN GENERAL STAFF AND COMMAND AND CONTROL OVER A STANDING UN ARMY TO WHICH THE VARIOUS UN COUNTRIES WOULD CONTRIBUTE FORCES GIVEN MR BOUTROSGHALI'S TALENT FOR MAKING ENEMIES HIS VISION OF POWER SEEMS UNLIKELY TO BE FULFILLED BUT THERE HAS BEEN A VIRTUAL EXPLOSION OF UN PEACEKEEPING OPERATIONS SINCE THE END OF THE COLD WAR THE NUMBER OF PEACEKEEPERS THE UN HAS DEPLOYED AROUND THE WORLD HAS SOARED TO 55000 FROM 15000 ONLY TWO YEARS AGO AND ITS PEACEKEEPING BUDGET FOR 199293 IS ESTIMATED AT NEARLY 37 BILLION MORE THAN QUADRUPLE THE LEVEL OF THE PRECEDING TWO YEARS BY FAR THE MOST EXPENSIVE OPERATION AT THE MOMENT IS IN CAMBODIA WHERE THE UN IS ATTEMPTING NOTHING LESS THAN A POLITICAL REORGANIZATION WITH LIMITED SUCCESS IT IS BEING THWARTED BY THE RECALCITRANCE OF THE MURDEROUS KHMER ROUGE GUERRILLAS INDEED THE NOWLONG LIST OF UN PEACEKEEPING OPERATIONS TURNS UP FEW SUCCESSES OTHER THAN IN PROVIDING SOME MEASURE OF HUMANITARIAN RELIEF TO CIVILIAN POPULATIONS CAUGHT UP IN THE WORLD'S MANY SMALL WARS THIS INCREASINGLY AMBITIOUS WORLD ROLE IS BEING UNDERTAKEN BY AN ORGANIZATION THAT HAS FOR YEARS BEEN NOTORIOUS FOR INEFFICIENCY SLIPSHOD ORGANIZATION AND CORRUPTION EVEN ONE OF ITS MORE HIGHLY REGARDED AGENCIES THE WORLD HEALTH ORGANIZATION IS CURRENTLY EMBROILED IN A SCANDAL OVER ALLEGED FINANCIAL IRREGULARITIES BEFORE ANYONE EVEN THINKS ABOUT FURTHER EXPANDING THE UN'S MISSION AS THE WORLD'S POLICEMAN THOUGHT SHOULD FIRST BE GIVEN TO A TOTAL HOUSECLEANING AND REORGANIZATION OF THE UN ITSELF THAT IS A FAR BIGGER TASK THAN ANY STUDIES OF THE UN HAVE YET ENVISIONED BUT THE BUSINESS IMMEDIATELY AT HAND IS BOSNIA THE NOFLY ENFORCERS WILL ENTER THE RING UNDER RESTRICTIVE RULES OF ENGAGEMENT THERE ARE STRONG INHIBITIONS AGAINST GOING BEYOND THAT MUSTERING INTERNATIONAL COOPERATION FOR PEACEKEEPING IS PROVING TO BE A TOUGHER JOB THAN THE WORLD IMAGINED TWO YEARS AGO MAYBE THE CONCEPT DESERVES A MORE THOROUGH EXAMINATION 9304120042 930412 POLITICS & POLICY CLINTON PREPARES TO RELAX POLICY ON VIETNAM AS US BUSINESS URGES ACCESS TO NEW MARKET BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON MAY BE ON THE VERGE OF FINALLY ENDING THE VIETNAM WAR MR CLINTON THIS WEEK WILL TAKE HIS FIRST STEP ALONG A PATH THAT COULD LEAD TO THE END OF THE 18YEAR ECONOMIC EMBARGO OF VIETNAM THE ACTIONS WOULD COME PARTLY TO RECIPROCATE HANOI'S CONTINUING COOPERATION IN RESOLVING CASES OF UNACCOUNTEDFOR US SOLDIERS FROM THE WAR BUT PRESSURE ALSO IS BUILDING FROM US BUSINESS WHICH COMPLAINS THAT THE US IS VIRTUALLY ALONE IN ENFORCING THE TRADE EMBARGO AND THAT FOREIGN COMPETITORS ARE SEWING UP MARKETS BEFORE AMERICAN COMPANIES CAN GET THERE THE ISSUE HAS TAKEN ON AN URGENCY MOSTLY BECAUSE OF AN INTERNATIONAL MONETARY FUND MEETING HERE THIS MONTH THE ADMINISTRATION EXPECTS A GROUP OF NATIONS LED BY FRANCE TO PROVIDE LOANS TO HELP VIETNAM PAY OFF ITS OLD DEBTS TO THE IMF THEN VIETNAM WOULD BE ELIGIBLE TO BORROW HUGE SUMS FROM THE IMF AND WORLD BANK TO DEVELOP ITS ECONOMY SOME OF THAT AID WOULD BE PROVIDED BY US FUNDS WHICH BACK THE INTERNATIONAL INSTITUTIONS SO IF THE ADMINISTRATION DOESN'T HAVE A NEW POLICY IN PLACE SOON US COMPANIES WILL CONTINUE TO BE BARRED FROM BIDDING ON PROJECTS FUNDED PARTLY BY US TAXPAYERS SOONER OR LATER THE EMBARGO IS GOING TO BE LIFTED SAYS WILLIAM BEDDOW WHO HEADS CATERPILLAR INC'S WASHINGTON OFFICE OUR ARGUMENT IS THAT IT SHOULD BE IN TIME FOR THE US ECONOMY TO DERIVE SOME BENEFIT FROM IT IN THE LAST MONTH US COMPANIES WHICH PREVIOUSLY WERE GUNSHY ABOUT TAKING ON THE ISSUE HAVE BEGUN PRESSING THE WHITE HOUSE BY MAKING THE ECONOMIC ARGUMENT FOR ENDING THE EMBARGO DURING A RECENT WHITE HOUSE MEETING AN EXECUTIVE OF UAL CORP'S UNITED AIRLINES TOLD OFFICIALS THE COMPANY HAS LAID OFF THOUSANDS OF WORKERS BECAUSE OF SLUGGISH DOMESTIC BUSINESS AND NOW SEES ALL ITS FUTURE GROWTH IN NEW FOREIGN MARKETS LIKE VIETNAM THE POLITICAL CLIMATE ALSO HAS CHANGED AS THE DIVISIVENESS OF THE VIETNAM ERA FADES A BIG STEP IN THAT DIRECTION WAS TAKEN EARLIER THIS YEAR WHEN A SPECIAL SENATE COMMITTEE HEADED BY SEN JOHN KERRY A MASSACHUSETTS DEMOCRAT WHO FOUGHT IN VIETNAM FOUND NO COMPELLING EVIDENCE TO SUPPORT CLAIMS BY SOME ACTIVIST VETERANS' GROUPS THAT AMERICANS ARE STILL BEING HELD PRISONER IN SOUTHEAST ASIA AND TWO WEEKS AGO MALCOLM WALLOP OF WYOMING ONE OF THE SENATE'S MOST CONSERVATIVE MEMBERS JOINED FELLOW GOP SENS FRANK MURKOWSKI OF ALASKA AND LARRY PRESSLER OF SOUTH DAKOTA IN SPONSORING LEGISLATION CALLING FOR AN END TO THE EMBARGO THE US HAS EVERY REASON TO MOVE FORWARD AND I WOULD BE MORE THAN HAPPY TO SERIOUSLY VIEW ANY ADMINISTRATION PROPOSAL AND BE FAVORABLY DISPOSED TO IT SAYS GOP SEN JOHN MCCAIN OF ARIZONA WHO WAS A PRISONER OF WAR IN VIETNAM FOR FIVE YEARS AND WHOSE LIKELY SUPPORT WOULD AID MR CLINTON ACTING ON THE RECOMMENDATION OF A SENIORLEVEL INTERAGENCY GROUP PRESIDENT CLINTON THIS WEEK WILL SEND RETIRED GEN JOHN VESSEY FORMER PRESIDENT BUSH'S SPECIAL EMISSARY TO VIETNAM ON A MISSION TO ASSESS HANOI'S RECENT COOPERATION ACCORDING TO A SENIOR OFFICIAL GEN VESSEY ALSO WILL ASK THE VIETNAMESE FOR MORE COOPERATIVE STEPS INCLUDING GIVING ACCESS TO SOME ARCHIVES THAT STILL ARE RESTRICTED AND MORE HELP ON RECOVERING REMAINS OF US SERVICEMEN IF THE VIETNAMESE GET HIGH MARKS FROM GEN VESSEY HIS EXPERIENCE AND REPUTATION WOULD PROVIDE FURTHER POLITICAL INSULATION FOR MR CLINTON WHO HAS STRAINED RELATIONS WITH THE PENTAGON BECAUSE OF HIS PROPOSALS TO LIFT THE MILITARY'S BAN ON HOMOSEXUALS AND CUT DEFENSE SPENDING AS WELL AS HIS ANTIVIETNAM WAR ACTIVITIES AS A STUDENT MR CLINTON DIDN'T SERVE IN THE CONFLICT A POSITIVE REPORT FROM GEN VESSEY WOULD PROMPT MR CLINTON TO GIVE THE GREEN LIGHT TO THE IMF TO BEGIN PROGRAMS FOR VIETNAM WHICH SENIOR US OFFICIALS CONCEDE WILL HAPPEN REGARDLESS OF WASHINGTON'S WISHES THEN IF HANOI KEEPS COOPERATING MR CLINTON WOULD BEGIN DECIDING WHETHER TO LIFT THE EMBARGO COMPLETELY OR TAKE SOME HALFSTEPS SUCH AS PERMITTING US COMPANIES TO BID ONLY ON PROJECTS FUNDED BY THE IMF AND WORLD BANK MR CLINTON ALSO COULD ANNOUNCE THAT HE WILL LET THE LAW IMPOSING THE EMBARGO EXPIRE WHEN IT COMES UP FOR RENEWAL IN SEPTEMBER IT WOULD BE VERY SILLY NOT TO ACKNOWLEDGE THE SIGNIFICANT PROGRESS MADE BY HANOI IN TRYING TO RESOLVE MISSINGINACTION CASES SEN KERRY SAYS SENIOR OFFICIALS EMPHASIZE THOUGH THAT MR CLINTON WILL DEMAND SATISFACTORY RESOLUTION OF THE MIA ISSUE BEFORE HE TAKES ANY FURTHER ACTION INDEED TOMORROW SEVERAL VETERANS GROUPS PLAN TO SEND MR CLINTON A FIVEPAGE LETTER CALLING ON HIM TO NOT EASE THE EMBARGO UNTIL HANOI MAKES FURTHER EFFORTS TO RESOLVE THIS ISSUE THE IMF ALSO IS BEING BOMBARDED WITH LETTERS BEARING SIMILARITIES THAT SUGGEST AN ORCHESTRATED CAMPAIGN A RECENT LETTER FROM A FORMER SOLDIER TO THE SENIOR US OFFICIAL AT THE IMF THOMAS DAWSON COMPLAINED THAT WHEN THE LIVES OF AMERICAN SERVICEMEN ARE SO CALLOUSLY TOSSED ASIDE FOR BUSINESS EFFICACY WE HAVE LOST THE MORAL FABRIC OF THIS SOCIETY BUT SUCH VOICES INCREASINGLY ARE ON THE PERIPHERY AS MOMENTUM BUILDS TO LIFT THE EMBARGO IN DECEMBER FORMER PRESIDENT BUSH TOOK THE FIRST STEP WHEN HE PERMITTED US COMPANIES TO OPEN OFFICES IN VIETNAM HIRE STAFF AND SIGN CONTRACTS BUT NOT CONDUCT BUSINESS HOWEVER THAT STEP MAY HAVE SET BACK US BUSINESS IT WAS SEEN BY FOREIGN COMPETITORS AS A SIGNAL TO ACCELERATE THEIR OWN EFFORTS BECAUSE THE AMERICAN EMBARGO WOULD END SOON PERHAPS THE MOST IRONIC SYMBOL OF THIS GOLD RUSH IS THE JAPANESEFINANCED HOTEL RISING ON THE SITE OF THE INFAMOUS HANOI HILTON THE JAIL THAT ONCE HELD AMERICAN PRISONERS OF WAR MEANWHILE ACCORDING TO A US COMMERCE DEPARTMENT CABLE SENT FROM A US EMBASSY IN ASIA TO WASHINGTON EARLIER THIS YEAR VIETNAM HAS GIVEN JAPAN A WISH LIST OF 348 PROJECTS VALUED AT ABOUT 64 BILLION THAT IT WOULD LIKE TO BEGIN WORK ON IF IT RECEIVES SUFFICIENT INTERNATIONAL FINANCING SOME OF THE ITEMS LISTED IN THE CABLE ARE 382 MILLION FOR FISHERIES 228 MILLION FOR AGRICULTURE PROJECTS AND A VARIETY OF ACTIVITIES RELATED TO TOURISM NOW THE IMF IS PROMPTING US ACTION WHAT WE'RE SAYING IS THAT THE RACE IS ON BUT WE CAN'T RUN COMPLAINS VIRGINIA FOOTE EXECUTIVE DIRECTOR OF THE USVIETNAM TRADE COUNCIL 9304120041 930412 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO PATRICK M PROUT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE BANK HOLDING COMPANY'S BANK ONE CLEVELAND NA UNIT MR PROUT 51 YEARS OLD WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT AND AREA EXECUTIVE FOR THE COMMERCIAL BANKING DIVISION OF BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION THE PRINCIPAL UNIT OF BANKAMERICA CORP SAN FRANCISCO HE SUCCEEDS DAVID STITH WHO LEFT THE POST IN AUGUST TO BECOME CHAIRMAN AND CHIEF EXECUTIVE OF BANK ONE HOUSTON NA 9304120040 930412 CLINTON AIDES SHED LIGHT ON HEALTH PLAN BUT SAY FINANCING HAS YET TO BE SETTLED BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TOP CLINTON HEALTH OFFICIALS OFFERED THE MOST COMPLETE PICTURE TO DATE OF THEIR HEALTH PROPOSAL DESCRIBING A SYSTEM IN WHICH EVERY AMERICAN WOULD CARRY A HEALTH SECURITY CARD EVERY EMPLOYER WOULD CONTRIBUTE TO WORKER HEALTH COVERAGE AND THE GOVERNMENT WOULD SUBSIDIZE CARE FOR THE POOR IN A BRIEFING WITH REPORTERS FRIDAY THREE HIGHLEVEL HEALTH OFFICIALS WHO INSISTED ON ANONYMITY SAID THAT NO DECISIONS HAD BEEN MADE ON HOW TO PAY FOR THE PLAN TO EXTEND HEALTH COVERAGE TO THE 37 MILLION AMERICANS WHO ARE UNINSURED THEY SAID THE TASK FORCE WAS CONSIDERING ABOUT 20 FINANCING OPTIONS BUT THAT THIS WOULD BE THE LAST DECISION MADE THE BRIEFING FOCUSED ON THE MOST ATTRACTIVE ASPECTS OF THE PLAN WITH QUESTIONS ABOUT COST THE LENGTH OF TIME IT WILL TAKE TO BRING COVERAGE TO EVERYONE AND THE ADMINISTRATION'S CONSIDERATION OF TEMPORARY MEDICAL PRICE CONTROLS GOING LARGELY UNANSWERED WE ENVISION A SYSTEM WHERE EVERY AMERICAN WOULD GET A HEALTH SECURITY CARD WHICH WOULD GUARANTEE THEIR ACCESS TO A NATIONALLY GUARANTEED COMPREHENSIVE BENEFITS PACKAGE SAID ONE OFFICIAL PEOPLE COULD TAKE THAT CARD TO AN EMPLOYEEBENEFITS OFFICE OR LOCAL HEALTH ALLIANCE WHERE THEY COULD CHOOSE AMONG A SERIES OF HEALTH PLANS EACH OFFERING THE NATIONAL BENEFITS PACKAGE HE SAID OFFICIALS SAID THEY HADN'T DECIDED WHAT WOULD BE IN THE PACKAGE ALL EMPLOYERS WOULD PAY A SIGNIFICANT PORTION OF THE COST OF HEALTH COVERAGE FOR THEIR WORKERS BUT ALL WORKERS ALSO WOULD CONTRIBUTE SOMETHING THE GOVERNMENT WOULD SUBSIDIZE THE COST FOR POOR PEOPLE WITH THE SIZE OF THE ASSISTANCE VARYING ACCORDING TO INCOME LEVEL THE AMOUNT INDIVIDUALS CONTRIBUTE WOULDN'T VARY ACCORDING TO THEIR HEALTH STATUS AN HIVPOSITIVE PATIENT WOULD PAY THE SAME AS A PERSON WITH NO HISTORY OF SERIOUS ILLNESS ALL THE CONTRIBUTIONS FROM EMPLOYERS INDIVIDUALS AND THE GOVERNMENT WOULD GO TO REGIONAL HEALTH ALLIANCES WHICH WOULD CONTRACT WITH A VARIETY OF HEALTH PLANS OFFERING THE STANDARD BENEFITS PACKAGE THESE COULD BE HEALTH MAINTENANCE ORGANIZATIONS WHICH OFFER A RANGE OF MEDICAL SERVICES FROM A NETWORK OF DOCTORS AND HOSPITALS FOR A FIXED MONTHLY OR YEARLY PREMIUM THE PLANS ALSO COULD INCLUDE TRADITIONAL INSURANCE COVERAGE THAT REIMBURSES ACCORDING TO EACH SERVICE PERFORMED BECAUSE THE FEEFORSERVICE COVERAGE ALLOWS FREEDOM TO CHOOSE ANY DOCTOR OR HOSPITAL IT PROBABLY WOULD BE MORE EXPENSIVE SO PEOPLE CHOOSING THOSE MAY HAVE TO PAY MORE THE INSURANCE LAWS WOULD BE REWRITTEN SO THAT PEOPLE WOULD BE ABLE TO STAY IN THEIR HEALTH PLAN EVEN IF THEY LOST A JOB CHANGED JOBS OR GOT SICK WHILE PREMIUMS COULDN'T BE VARIED ACCORDING TO MEDICAL HISTORY THEY MIGHT BE ALLOWED TO VARY ACCORDING TO AGE OFFICIALS HAVEN'T YET DECIDED THAT POINT PEOPLE WHO MOVE OUT OF A REGION MIGHT HAVE TO CHANGE PLANS BUT THEY WOULD ALWAYS BE GUARANTEED COVERAGE A NATIONAL QUALITY REPORT CARD WILL BE ISSUED FOR EACH PLAN INCLUDING A CONSUMER SURVEY AND INFORMATION ON HOW MANY PEOPLE DECIDED TO LEAVE THE PLAN THE PREVIOUS YEAR OTHER ELEMENTS OF THE PLAN WHICH PRESIDENT CLINTON NOW AIMS TO UNVEIL IN MID MAY AS DESCRIBED BY THE OFFICIALS FRIDAY INCLUDE EACH STATE WOULD SET UP ITS HEALTH ALLIANCES DECIDE HOW MANY THERE SHOULD BE HOW THEY SHOULD BE RUN AND OVERSEEN MEDICAID THE FEDERALSTATE HEALTH PROGRAM FOR LOWINCOME PEOPLE WOULD BE ABOLISHED INSTEAD THE FEDERAL GOVERNMENT AND THE STATES WOULD PROVIDE DIRECT SUBSIDIES TO POOR PEOPLE TO ENROLL IN THE PRIVATE PLANS MEDICARE THE FEDERAL HEALTH PROGRAM FOR ELDERLY PEOPLE WOULD REMAIN COMMUNITY HEALTH CENTERS PUBLIC CLINICS AND OTHER TRADITIONAL CARE PROVIDERS IN INNER CITY AREAS WILL BE STRENGTHENED MEASURES WILL BE PROPOSED TO LINK RURAL DOCTORS TO SPECIALISTS AND HOSPITALS IN URBAN AREAS 9304120039 930412 REVIEW & OUTLOOK EDITORIAL ASIDES UNHAPPY DAY HERE'S A NEW TRADITION WE CAN DO WITHOUT PROTESTERS AT BOTH ENDS OF THE POLITICAL SPECTRUM HAVE DECIDED TO EXPLOIT THE HOLY DAY OF GOOD FRIDAY VETERAN HOLLYWOOD LIBERAL MARTIN SHEEN LED A GROUP FEATURING CROSSES AND A PRAYER SERVICE AT LAWRENCE LIVERMORE LABORATORY MEANWHILE ANTIABORTION PROTESTERS STAGED THEIR ANNUAL CANDLE DEMONSTRATIONS AROUND THE COUNTRY MAYBE NEXT YEAR THESE PEOPLE COULD DO SOMETHING APPROPRIATE GO TO CHURCH 9304120038 930412 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR MARCH BROUGHT RETAIL MERCHANTS TWO THINGS THEY GENERALLY DON'T LIKE TO SEE NASTY WEATHER AND CONSUMERS WITH LESS MONEY IN THEIR POCKETS A COMMERCE DEPARTMENT REPORT DUE OUT THIS WEEK PROBABLY WILL SHOW THAT RETAIL SALES FELL 02 IN MARCH SAID CARL PALASH CHIEF ECONOMIST AT MCCARTHY CRISANTI & MAFFEI INC THAT WOULD END A STRING OF INCREASES THAT BEGAN IN DECEMBER WITH A SURGE IN HOLIDAY SHOPPING THE BLIZZARD THAT HIT THE EAST IN EARLY MARCH AND A SLOWDOWN IN INCOME GROWTH WILL HAVE AN EFFECT MR PALASH SAID INCOME GROWTH HAS SLOWED THROUGHOUT THE FIRST QUARTER PARTLY BECAUSE OF FEWER AND SMALLER INCOME TAX REFUNDS AN ADJUSTMENT TO TAX WITHHOLDINGS LAST SPRING GAVE CONSUMERS MORE SPENDING MONEY AT THE TIME BUT RESULTED IN SMALLER TAX REFUNDS THIS YEAR MR PALASH SAID THE LIGHTER TAX REFUNDS COULD CONTINUE TO DAMP RETAIL SALES IN COMING MONTHS THE SLOWING IN INCOME GROWTH COULD HOLD DOWN SPENDING EVEN WHEN THE WEATHER IMPROVES HE SAID THINGS ALSO DON'T LOOK GOOD FOR OUTPUT AT THE NATION'S FACTORIES IN MARCH MR PALASH SAID HE ESTIMATED INDUSTRIAL PRODUCTION WAS FLAT IN MARCH AFTER FIVE STRAIGHT MONTHLY INCREASES AND THE PERCENTAGE OF INDUSTRIAL CAPACITY THAT WAS USED PROBABLY FELL 02 POINT TO 797 HE ADDED 9304120037 930412 THE QUESTION USUALLY ISN'T WHY THEY SING BUT WHY OTHERS LISTEN BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO EVER LAIN AWAKE NIGHTS WONDERING WHY ANYONE WOULD PAY GOOD MONEY TO STAND IN FRONT OF A VIDEO SCREEN AND SING FROM ELECTRONICALLY CUED LYRICS TO A ROOM FULL OF DRUNKEN STRANGERS WONDER NO LONGER PIONEER ELECTRONIC CORP HAS THE ANSWER IN FACT THE COMPANY HAS JUST RELEASED A WHOLE SLEW OF THEM IN A 1992 WHITE PAPER ON NEWMEDIA KARAOKE REFERRING TO PRODUCTS SUCH AS PIONEER'S KARAOKE LASERDISK MUSIC AND VIDEO PLAYERS WHY HAS KARAOKE BOOMED IN JAPAN THE 63PAGE WHITE PAPER CONCLUDES IT WAS HEALTHY AND CHEAP IT BECAME EASIER TO SING KARAOKE THANKS TO LASER DISKS IT WAS NOT NECESSARY TO REMEMBER THE LYRICS DITTO PIONEER HAS CALCULATED THE DAILY NUMBER OF KARAOKE SINGERS 61 MILLION THE PERCENTAGE OF BARS IN JAPAN THAT OFFER KARAOKE ABOUT 82 AND THE AVERAGE NUMBER OF KARAOKE SONGS SUNG EACH DAY 33 IN MOST ESTABLISHMENTS BUT 59 IN PUBS WHERE THE YOUNG GATHER IT ALSO BREAKS DOWN THE SERVICES OFFERED BY KARAOKE ROOMS 899 SELL ALCOHOLIC BEVERAGES AND 462 SELL DISPOSABLE CAMERAS AND FILM BUT ONLY 14 SELL ITEMS FOR DISGUISE THE WHITE PAPER WHICH HAPPENS TO BE GREEN SHOULD SATISFY THE HARDESTCORE KARAOKEIST IT EVEN CATALOGS SOCIAL TRENDS LEADERSHIP IN HOW TO ENJOY' THE NEW ENTERTAINMENT OF KARAOKE IS SHIFTING TO THE YOUNGER GENERATION AND TO HOUSEWIVES SIMILARLY PIONEER NOTES THAT 364 OF OWNERS OF HOME LASER KARAOKE SYSTEMS BOUGHT THEIR SYSTEMS FOR EXERCISE PURPOSES IT ALSO SUGGESTS THAT KARAOKE HAS MADE IT EASIER TO MANAGE A BAR SINCE NOTHING BUT KARAOKE WAS NECESSARY FOR CONDUCTING ITS BUSINESS WHILE THE REPORT ARGUES THAT KARAOKE'S POPULARITY CONTINUES TO GROW PIONEER GLUMLY CONCEDES THAT THERE ARE SOME DISHEARTENING STATISTICS FOR ONE THING THE NUMBER OF BARS REPORTING A FALL IN KARAOKE INCOME HAS RISEN STEADILY SINCE 1990 LEADING PIONEER TO CONCLUDE THE BAR INDUSTRY IS UNSTABLE FOR ANOTHER MOST HOME KARAOKE OWNERS AREN'T ABLE TO ENJOY THEIR SYSTEMS AT A SATISFACTORY VOLUME A FULL 82 HAVE TO SING WHILE CHECKING THEIR SURROUNDINGS OR WORRYING ABOUT THEIR NEIGHBORS AS FOR WHY PEOPLE LIKE KARAOKE ACCORDING TO PIONEER THE VIDEO IMAGE OFFERED WONDERFUL PICTURE QUALITY WHICH ENHANCED THE TRANSFER OF FEELINGS AND BECAME THE BEST FAMILY DOCTOR FOR RELIEVING STRESS 9304120036 930412 WHO'S NEWS MPTV INC MPTV INC MINNEAPOLIS GERALD DORAN 57 YEARS OLD FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CHERNE INDUSTRIES INC WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ENTERTAINMENT AND HOSPITALITY CONCERN SUCCEEDING ALBERT GANNAWAY JR WHO RESIGNED ALSO THE COMPANY ELECTED MR DORAN RICHARD KIRKES KEITH WITTER AND ED HANSEN TO THE BOARD REPLACING THREE DIRECTORS WHO RESIGNED AS PART OF CORPORATE RESTRUCTURING AND EXPANDING THE BOARD TO EIGHT MEMBERS 9304120035 930412 WHO'S NEWS MASSTOR SYSTEMS CORP MASSTOR SYSTEMS CORP SAN JOSE CALIF DAVID ADDISON CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF THIS MAKER OF COMPUTER STORAGE SYSTEMS RESIGNED A COMPANY SPOKESMAN SAID NO ONE WAS AVAILABLE TO DISCUSS MR ADDISON'S RESIGNATION HE SAID MR ADDISON WAS OUT OF THE COUNTRY AND COULDN'T BE REACHED 9304120033 930412 CORRECTIONS & AMPLIFICATIONS PAINEWEBBER GROUP INC'S PAINEWEBBER UNIT DROPPED F&C INTERNATIONAL INC AS A CLIENT TUESDAY AFTER THE CINCINNATI FLAVOR AND FRAGRANCE MAKER FIRED ITS CHAIRMAN AND DISCLOSED INVENTORY DISCREPANCIES F&C CONFIRMS THAT PAINEWEBBER RESIGNED AS THE AGENT THE COMPANY RETAINED TO SELL ITS FRAGRANCE DIVISION BUT WOULDN'T CITE THE REASONS AN ARTICLE THURSDAY INCORRECTLY REPORTED THAT F&C DISMISSED PAINEWEBBER FEDERAL PROSECUTORS CHARGED ALISANDRO APONTE WITH DEFRAUDING SOME CLIENTS OF HIS COMPANY ASHLAND CAPITAL MANAGEMENT INC AN ARTICLE FRIDAY MISTAKENLY IDENTIFIED THE COMPANY AS ASHLAND MANAGEMENT INC WHICH HAS NO TIES TO MR APONTE 9304120031 930412 TOY MAKERS SEE MIXED RESULTS FOR 1ST QUARTER ORDERS DECLINE AS RETAILERS SKITTISH AFTER SOFT '92 KEEP INVENTORIES LEAN BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL TOY MAKERS HURT BY A TENDENCY AMONG RETAILERS TO ORDER CONSERVATIVELY ARE EXPECTED TO POST MIXED RESULTS FOR THE FIRST QUARTER HASBRO INC AND MATTEL INC THE NATION'S LARGEST TOY MAKERS ARE EXPECTED TO REPORT EARNINGS INCREASES DESPITE SALES THAT WILL BE FLAT AFTER ADJUSTING FOR INFLATION ACCORDING TO ANALYSTS BUT TYCO TOYS INC AND FISHERPRICE INC ARE EXPECTED TO REPORT LOSSES ON SALES DECLINES RETAILERS ARE MORE CAUTIOUS BECAUSE SOME OF THEM GOT BURNED LAST YEAR AFTER ORDERING AGGRESSIVELY FOR THE FIRST QUARTER COMING OFF STRONG CHRISTMAS SALES IN 1991 BUT SALES OF MANY TOYS WERE SOFT DURING THE FIRST THREE QUARTERS OF 1992 AND RETAILERS CANCELED SEVERAL MAJOR ORDERS AS A RESULT RETAILERS AREN'T ORDERING AS AGGRESSIVELY THIS YEAR RETAILERS ACROSS THE BOARD ARE FORCING VENDORS TO ASSUME THE RISK OF CARRYING INVENTORY SAID DONALD TROTT AN ANALYST AT DEAN WITTER REYNOLDS INC EVERIMPROVING SOFTWARE ALSO IS HELPING RETAILERS ELIMINATE INVENTORYREADING ERRORS ENABLING THEM TO MAINTAIN LEANER STOCKS I DON'T THINK INVENTORY LEVELS CAN GET MUCH LOWER THAN THEY ARE TODAY SAID SEAN MCGOWAN ANALYST FOR GERARD KLAUER MATTISON & CO WHILE SPARKS COULD FLY IN THIRD AND FOURTHQUARTER SALES FIRSTHALF RESULTS WILL BE MUTED SAID JILL KRUTICK ANALYST FOR SALOMON BROTHERS ANALYSTS EXPECT HASBRO TO POST A NET INCOME INCREASE OF ABOUT 8 MATTEL IS EXPECTED TO REPORT ABOUT A 14 EARNINGS JUMP THE NEXT TWO BIGGEST TOY COMPANIES TYCO AND FISHERPRICE HAVE INDICATED THEY WILL REPORT LOSSES RETAILING GIANT TOYS R US INC SHOULD REPORT A NET INCOME GAIN OF 10 TO 20 ANALYSTS SAID HASBRO BASED IN PAWTUCKET RI WILL REPORT PERSHARE EARNINGS OF ABOUT 27 CENTS COMPARED TO 25 CENTS IN LAST YEAR'S FIRST QUARTER ACCORDING TO ANALYSTS THE COMPANY TOLD ANALYSTS IN FEBRUARY THAT IT EXPECTS REVENUES TO BE FLATTISH BUT CRAIG SILVERS ANALYST FOR CROWELL WEEDON & CO IN LOS ANGELES ESTIMATED THAT HASBRO'S FIRSTQUARTER REVENUES CLIMBED 3 FROM THE 4526 MILLION THE COMPANY REPORTED A YEAR AGO A NUMBER OF ACTION FIGURES INCLUDING BATMAN TERMINATOR AND GI JOE ARE SELLING WELL ALIENS BASED ON THE MOVIE SERIES IS ALSO A HOTSELLER WITH AN ADULT FOLLOWING SAID MR SILVERS THE COMPANY'S PLAYSKOOL DIVISION FACING INCREASED COMPETITION IS GETTING A BOOST FROM ITS BARNEY TOYS BASED ON THE POPULAR CHILDREN'S TELEVISION SHOW SALOMON BROTHERS' MS KRUTICK SAID HE EXPECTS MATTEL TO REPORT EARNINGS OF 16 CENTS A SHARE COMPARED WITH 14 CENTS A SHARE LAST YEAR THE EL SEGUNDO CALIF COMPANY'S REVENUE IS EXPECTED TO BE FLAT TO SLIGHTLY UP PARTLY REFLECTING A 20 MILLION REDUCTION IN VIDEO GAME SALES STEMMING FROM A DECISION TO STOP DISTRIBUTING NINTENDO GAMES IN ITALY SAID MS KRUTICK THE DECLINE PARTIALLY WAS OFFSET BY AN INCREASE OF ABOUT 5 IN US BUSINESS SHE ADDED LAST YEAR MATTEL REPORTED FIRSTQUARTER REVENUE OF 3261 MILLION THE COMPANY WAS ONE OF THE FIRST TO SIGNAL RETAILER THRIFTINESS WHEN ITS CHRISTMASQUARTER SALES FELL SHORT OF ANALYSTS' EXPECTATIONS HOWEVER ITS BARBIE DOLL ALONG WITH SEVERAL PRESCHOOL DISNEY PRODUCTS INCLUDING ALADDIN ARE FUELING SALES ANALYSTS SAID TYCO TOYS MT LAUREL NJ IN A SLUMP SINCE ITS ARIEL MERMAID DOLLS STARTED TO LOSE POPULARITY LAST YEAR IS EXPECTED TO REPORT A LOSS OF ABOUT 35 CENTS A SHARE COMPARED WITH NET INCOME OF 23 CENTS A SHARE IN LAST YEAR'S FIRST QUARTER THE COMPANY ALSO SUFFERING FROM A SLIGHT FALLOFF IN SALES OF ITS CRASH DUMMIES ACTION FIGURES IS EXPECTED TO REPORT A FIRSTQUARTER REVENUE DECLINE OF 15 TO 20 ACCORDING TO ANALYSTS TYCO HAD 1342 MILLION IN REVENUE IN THE YEARAGO QUARTER TYCO'S RECENT ACQUISITIONS OF MATCHBOX AND ILLCO HOWEVER SHOULD HELP SALES IN THE SECOND HALF OF THE YEAR THE TWO SUBSIDIARIES ARE MORE RELIANT ON SALES OVERSEAS WHERE CONSUMERS TEND TO DO MOST OF THEIR TOY BUYING AT CHRISTMAS FISHERPRICE OF EAST AURORA NY INDICATED LAST MONTH THAT IT EXPECTS TO POST A FIRSTQUARTER LOSS WHICH ANALYSTS ESTIMATE WILL EQUAL ABOUT FOUR CENTS A SHARE THAT COMPARES TO LAST YEAR'S 22 CENTS A SHARE NET FOR THE QUARTER SALES WILL BE DOWN 15 TO ABOUT 125 MILLION FROM 1468 MILLION THE COMPANY PREDICTED IT BLAMED TIGHTER INVENTORY CONTROLS AMONG RETAILERS AMONG RETAILERS TOYS R US BASED IN PARAMUS NJ IS EXPECTED TO REPORT PERSHARE EARNINGS OF 11 OR 12 CENTS UP FROM 10 CENTS IN THE YEARAGO QUARTER SAID GERARD KLAUER'S MR MCGOWAN SALES ARE EXPECTED TO CLIMB 17 TO 137 BILLION FROM 117 BILLION A YEAR AGO HE SAYS THE SEVERE WINTER PARTICULAR IN THE EASTERN PART OF THE US AFFECTED SALES TO SOME DEGREE IN THE COMPANY'S KIDS R US CLOTHING UNIT MR MCGOWAN SAID ALTHOUGH THE RESURGENCE OF VIDEO GAMES IS EXPECTED TO CONTINUE THIS YEAR ANALYSTS AT LEAST FOR NOW DON'T EXPECT TRADITIONAL SALES TO SUFFER I THINK THE LINE WE'RE USING IS THAT VIDEO AND TOYS CAN COEXIST HAPPILY TOGETHER SAID PAUL VALENTINE AN ANALYST FOR STANDARD & POOR'S CORP MOREOVER THE NUMBER OF TOY STORES IN THE US HAS SHRUNK WITH THE DEMISE LAST YEAR OF CHILD WORLD INC AND STORE CLOSINGS BY LIONEL CORP OF EDISON NJ OPERATING UNDER US BANKRUPTCYCOURT PROTECTION SOME OF THEIR BUSINESS IS BEING PICKED UP BY WALMART STORES INC OF BENTONVILLE ARK AND KMART CORP OF TROY MICH THE TWO LARGE RETAILERS DO MOST OF THEIR BUYING IN THE SECOND HALF OF THE YEAR WHEN THEY EXPAND TOY RETAIL SPACE FOR THE HOLIDAY SEASON 9304120030 930412 NOTABLE & QUOTABLE FROM A 1919 ARTICLE ON INCOME TAXES BY PG WODEHOUSE AS I SIT IN MY POVERTYSTRICKEN HOME LOOKING AT THE PLACE WHERE THE PIANO USED TO BE BEFORE I HAD TO SELL IT TO PAY MY INCOME TAX I FIND MYSELF IN A THOUGHTFUL MOOD THE FIRST AGONY OF THE SEPARATION FROM MY HARDEARNED SO TO SPEAK INCOME IS OVER AND I CAN SEE THAT I WAS UNJUST IN MY OPINION OF THE UNITED STATES GOVERNMENT AT FIRST I FELT TOWARD THE USG AS I WOULD FEEL TOWARD ANY PERFECT STRANGER WHO INSINUATED HIMSELF INTO MY HOME AND STOOD ME ON MY HEAD AND WENT THROUGH MY POCKETS THE ONLY DIFFERENCE I COULD SEE BETWEEN THE USG AND THE ORDINARY PRACTITIONER IN A BLACK MASK WAS THAT THE LATTER OCCASIONALLY LEFT HIS VICTIM CARFARE GOSH I WAS BITTER NOW HOWEVER AFTER THE LAPSE OF WEEKS I BEGIN TO SEE THE OTHER SIDE THINK HOW DIFFERENTLY THE HEAD OF THE FAMILY REGARDS HIS NEAREST AND DEAREST IN THESE DAYS OF INCOME TAX MANY A MAN WHO HAS SPENT YEARS WONDERING WHY ON EARTH HE WAS SUCH A CHUMP AS TO LINK HIS LOT WITH A WOMAN HE HAS DISLIKED FROM THE VERY MOMENT THEY STEPPED OUT OF THE NIAGARA FALLS HOTEL AND A GANG OF CHILDREN WHOSE EXISTENCE HAS ALWAYS SEEMED SUPERFLUOUS GRATEFULLY REVISES HIS VIEWS AS HE STARTS TO FILL UP THE PRINTED FORM HIS WIFE MAY BE A NUISANCE ABOUT THE HOME BUT SHE COMES OUT STRONG WHEN IT IS A QUESTION OF MARRIED MAN'S EXEMPTION AND THE CHILDREN AS THE FATHER LOOKS AT THEIR GRUBBY FACES AND REFLECTS THAT HE IS ENTITLED TO KNOCK OFF TWO HUNDRED BONES PER CHILD THE AUSTERITY OF HIS DEMEANOR SOFTENS AND HE PATS THEM ON THE HEAD AND TALKS VAGUELY ABOUT JAM FOR TEA AT SOME FUTURE AND UNSPECIFIED DATE AS REGARDS INCOME TAX I AM THANK GOODNESS AN INDIVIDUAL I PRAY THAT I MAY NEVER BECOME A CORPORATION IT SEEMS TO ME THAT SOME SOCIETY FOR THE PREVENTION OF CRUELTY TO THINGS OUGHT TO STEP IN BETWEEN THE AUTHORITIES AND THE CORPORATIONS I HAVE NEVER GONE DEEPLY INTO THE MATTER HAVING ENOUGH TROUBLES OF MY OWN BUT A CASUAL SURVEY OF THE LAWS RELATING TO THE TAXING OF CORPORATIONS CONVINCES ME THAT ANY CORPORATION THAT GETS AWAY WITH ITS TROUSERS AND ONE COLLARSTUD SHOULD OFFER UP HOSANNAHS 9304120029 930412 LETTERS TO THE EDITOR NO WEAPONS RESEARCH FERMI NATIONAL ACCELERATOR LABORATORY MENTIONED IN YOUR FEB 17 ENVIRONMENT COLUMN ITEM LET CONSERVATION START AT ENERGY DEPARTMENT HAS NEVER BEEN ENGAGED IN NUCLEARWEAPONS RESEARCH A SINGLEPURPOSE LABORATORY ENGAGED IN HIGHENERGY PHYSICS FERMILAB'S MISSION IS TO PROVIDE THE RESOURCES FOR QUALIFIED SCIENTISTS PRINCIPALLY FROM THE NATION'S UNIVERSITIES TO CONDUCT BASIC RESEARCH AIMED AT A DEEPER UNDERSTANDING OF THE FUNDAMENTAL PARTICLES OF MATTER AND THE FORCES ACTING BETWEEN THEM 9304120028 930412 RALSTON PURINA NEARS AGREEMENT TO BUY BRECKENRIDGE RESORT ST LOUIS RALSTON PURINA CO SAID IT IS CLOSE TO SIGNING A DEFINITIVE AGREEMENT TO BUY THE BRECKENRIDGE SKI CORP FROM VICTORIA USA INC A JAPANESE SPORTING GOODS CONCERN TERMS WEREN'T DISCLOSED RALSTON PURINA A FOOD AND ANIMALFEED MAKER ALREADY OWNS KEYSTONE AND ARAPAHOE BASIN SKI RESORTS THEY AND BRECKENRIDGE SKI RESORT ARE LOCATED IN SUMMIT COUNTY COLO ABOUT 90 MILES WEST OF DENVER BRECKENRIDGE IS THE NATION'S NO 2 SKI RESORT MEASURED BY SKIER DAYS THE INDUSTRY'S MEASURE OF BUSINESS VOLUME VAIL SKI RESORT ALSO IN COLORADO IS NO 1 VICTORIA PURCHASED BRECKENRIDGE FIVE YEARS AGO FOR AN ESTIMATED 65 MILLION FROM CLOSELY HELD ASPEN SKI CO WHICH OWNS THE ASPEN SKI RESORT THE ASSETS OF THE BRECKENRIDGE SKI COMPANY INCLUDE A US FOREST SERVICE LEASE SKI LIFTS A SKI SCHOOL AND A RESTAURANT AT THE BASE OF ONE OF BRECKENRIDGE'S THREE PEAKS VICTORIA SAID IT WILL USE PROCEEDS FROM THE SALE IF IT OCCURS TO RESTRUCTURE DEBT THE COMPANY OWNS TWO OTHER SKI AREAS IN STRATTON VT AND MT HUTT NEW ZEALAND VICTORIA HAD PLANNED A MAJOR 75 MILLION EXPANSION AT BRECKENRIDGE IN THE 19901991 SKI YEAR THE PLAN INCLUDED A FUNICULAR WHICH IS A TRAINLIKE SKI LIFT A NEW RESTAURANT AND EXPANDED SKI TERRAIN BUT THE PLANS WERE PUT ON HOLD AT THE END OF THAT SKI SEASON AFTER THE RESORT'S SKI BUSINESS DECLINED 15 FROM THE YEAR BEFORE THIS YEAR HOWEVER BRECKENRIDGE POSTED A RECORD NUMBER OF SKIER DAYS THE RESORT TOTALED 11 MILLION SKIER DAYS IN THE 19891990 SEASON AND SURPASSED THAT NUMBER SATURDAY FOR THE 19921993 SEASON TOTAL SKIER DAYS FOR THE RESORT WON'T BE AVAILABLE UNTIL IT CLOSES APRIL 18 AS RECENTLY AS THREE YEARS AGO IT WAS RUMORED THAT RALSTON PURINA WANTED OUT OF ITS 50 INVESTMENT IN KEYSTONE BUT THAT SPECULATION WAS SQUELCHED IN 1990 WHEN THE COMPANY BOUGHT THE OTHER 50 STAKE IN THE 199192 SEASON THE COMPANY SPENT 32 MILLION TO BUILD A NEW RESTAURANT GONDOLA TWO LIFTS AND NEW TRAILS AT KEYSTONE KEYSTONE RECORDED ONE MILLION SKIER DAYS LAST SEASON ARAPAHOE BASIN POSTED ABOUT 200000 SKIER DAYS THE COMPANY EXPECTS THAT BECAUSE OF RECORD SNOWS IN THE ROCKIES AND ITS EXPANSION IT WILL POST A RECORD YEAR AT KEYSTONE PROJECTIONS FOR ARAPAHOE BASIN WHICH IS EXPECTED TO STAY OPEN UNTIL MAY OR JUNE CAN'T BE MADE THIS EARLY A SPOKESMAN SAID A SPOKESMAN FOR RALSTON PURINA SAID THAT THE MANAGEMENT OF KEYSTONE BRECKENRIDGE AND ARAPAHOE BASIN WOULD BE MERGED INTO ONE OPERATION 9304120027 930412 LITHUANIAN LINGUISTS RESIST NEW ATTACKS ON NATIVE TONGUE AFTER SURVIVING THE RED ARMY LANGUAGE IS UNDER ASSAULT BY FAST FOOD AND RAVIOLI BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL CIZIUNAI LITHUANIA TALKING TO UNEXPECTED GUESTS IN HER WOODEN COTTAGE SHE STANDS SHYLY BESIDE A TABLE IT COMES UP TO HER WAIST SHE WEARS A COARSE DRESS AND HEAD SCARF HER HANDS ARE RAW HER EYES WATERY THE LANGUAGE SHE SPEAKS LITHUANIAN IS THE OLDEST LIVING EUROPEAN LANGUAGE AND SHE IS AMONG ITS OLDEST LIVING SPEAKERS DID YOU GO TO SCHOOL THE LINGUIST ASKS THAT WAS IN CZARIST TIMES SAYS ZOSE BALIUKEVICIENE BORN 1897 I HAD NO TIME FOR SCHOOL MY PARENTS OWNED FOUR COWS WE HAD SHEEP WORK HAD NO END EVEN IN WINTER WORK AND WORK KAZYS MORKUNAS OF THE INSTITUTE OF THE LITHUANIAN LANGUAGE REESTABLISHED 1990 TAKES A NOTE AVIS IT MEANS SHEEP IN LITHUANIAN IN SANSKRIT IT MEANS THE SAME THING WHEN DID YOUR HUSBAND DIE ASKS MR MORKUNAS HE DIED WHEN THE RUSSIANS CAME OH THAT WAS LONG AGO MY SONS AND DAUGHTERS WERE ALREADY TEENAGERS THE LINGUIST TAKES MORE NOTES VYRAS HUSBAND MIRTIS DEATH SUNUS SON DUKTE DAUGHTER THE SANSKRIT SYNONYMS VIRAS MRTAS SUNUS DUHITA I'M DEAF NOW THE OLD WOMAN SAYS AT THE DOOR BUT I SPEAK LOUD ENOUGH THANK GOD THAT HE STILL KEEPS ME ALIVE AND KEEPS THE LANGUAGE ALIVE THROUGH HER SHE CHANGED HER NOMINATIVE PLURAL ENDINGS MR MORKUNAS SAYS OUTSIDE CLOSING THE GATE OF HER WEATHERED PICKET FENCE THAT IS VERY OLD WHEN MRS BALIUKEVICIENE GOES HERE'S HOPING HER NOMINATIVE PLURALS DON'T GO WITH HER BETWEEN 1385 AND 1990 LITHUANIA NEVER TRULY HAD A STATE OR A STATE LANGUAGE EMBRACING THE NATIVE LAND OF ITS NATIVE TONGUE POLISH YIDDISH AND GERMAN CAME AND WENT DROPPING A WORD HERE AND THERE RUSSIAN CAME TWICE AND STAYED LONGER LEAVING VOLUMES OF BUREAUCRATESE NOW WITH FREEDOM COME THE LEXICONS OF FAST FOOD SATELLITE TELEVISION AND TECHNOSPEAK LITHUANIA'S LINGUISTS HAVE REPLIED WITH THE NATION'S FAVORITE NOUN RESISTANCE THEY DON'T QUITE KNOW HOW THEIR LANGUAGE WITHSTOOD HISTORY'S CHURNING BUT IMPENETRABLE FORESTS AND IMPASSABLE MARSHES HAD A PART IN IT SO DID STUBBORNNESS PAGANISM MADE ITS LAST STAND HERE CHRISTIANITY DIDN'T ARRIVE UNTIL 1387 AND LITHUANIAN HAS DONE LESS EVOLVING THAN ANY LANGUAGE FROM ICELANDIC TO BENGALI LITHUANIAN HAS SEVEN CASES FOUR TENSES FOUR MOODS COMPLEX PARTICIPLES AND INVOLVED INFLECTIONS ARCHAIC GRAMMATICAL CLUMPS PLACING IT AMONG THE LOWER TWIGS OF A VAST LINGUISTIC THICKET AT THE ROOT OF IT ALL IS INDOEUROPEAN THE NOMADIC LANGUAGE OF 5000 YEARS AGO THAT GAVE RISE TO LATIN GREEK AND SANSKRIT TO FRISIAN GAELIC BULGARIAN AND BALUCHI AND TO ENGLISH HOW WIDELY THE INDOEUROPEANS ROAMED NO ONE IS SURE BUT AS A BRITISH LINGUIST ONCE SAID WE MAY FAIRLY REGARD OUR ANCESTRAL HOME AS A MUCHEXTENDED LITHUANIA A JUDGE IN CALCUTTA 150 YEARS AGO NOTED THE LIKENESS OF LITHUANIAN AND SANSKRIT IN 1856 A GERMAN WROTE THE FIRST LITHUANIAN GRAMMAR HAILED BY A VILNIUS HISTORIAN AS THE BIGGEST LINGUISTIC SENSATION OF THE MIDDLE 19TH CENTURY WORD GOT OUT THAT SANSKRIT SCHOLARS COULD COME AND CHAT WITH THE FARMERS IT WASN'T TRUE BUT IT HELPED LITHUANIAN LIVE DURING ITS FIRST DICTATORIAL TOUR HERE RUSSIA BANNED ALL BUT CYRILLIC LETTERS LITHUANIANS PRINTED BOOKS ABROAD AND SNUCK THEM IN COINING KNYGNESYS ON THE WAY IT MEANS BOOK CARRIER BY 1904 RUSSIA GAVE UP AND BY 1918 THE COUNTRY WAS FREE WE CANNOT FIND ANOTHER EXAMPLE IN THE HISTORY OF SCIENCE SAYS LITHUANIAN LINGUIST ALGIRDIS SABALIAUSKAS WHERE COMPARATIVE LINGUISTICS WAS SO IMPORTANT FOR NATIONAL HISTORY ITSELF THEN ALONG CAME THE RED ARMY FOLLOWED BY NOAM CHOMSKY THE REDS RECONQUERED LITHUANIA ABOUT 15 YEARS LATER IN AMERICA PROF CHOMSKY REVOLUTIONIZED LINGUISTICS IN SEARCH OF GRAMMAR'S DEEP STRUCTURES LINGUISTS STOPPED WASTING THEIR BREATH ON MUSTY TONGUES NO LONGER HIP LITHUANIA'S LINGUISTS WERE LEFT TO INVEIGH AGAINST THE INVADERS ON THEIR OWN RUSSIAN NEARLY DROWNED THEM OUT IT WAS THE LANGUAGE OF TRAINS TRUCKS AND FACTORIES OF THE POST OFFICE AND THE CENTRAL COMMITTEE OF LABORATORIES AND KINDERGARTENS A LITHUANIAN IN THE ARMY NEVER HEARD A LITHUANIAN COMMAND A LITHUANIAN WRITING A THESIS ABOUT LITHUANIAN HAD TO SUBMIT IT IN RUSSIAN PEASANTS WERE DISPLACED OR DEPORTED DIALECTS DISINTEGRATED THE LINGUISTS KEPT GOING WE RESISTED MORE THAN OTHERS ALEKSANDRAS VANAGAS SAYS IN HIS MID 60S HE STUDIES PLACE NAMES AT THE LANGUAGE INSTITUTE WITH A DWINDLING COMPANY OF COLLEAGUES HE PREPARED A DIALECT ATLAS 14 VOLUMES OF A DICTIONARY A GRAMMAR BUT LINGUISTS GOT LITTLE MONEY TO PUBLISH THEIR WORK AND FEW STUDENTS THAT'S WHY WE'RE ALL SO OLD SAYS PROF VANAGAS THEY SHOUTED DOWN RUSSIAN IN ANY CASE BACKED BY SOME POLITICAL PEP TALK NOW THEY'RE WORKING FOR THE NEW STATE LANGUAGE COMMISSION RECASTING OFFICIAL PAPERWORK INTO PURE LITHUANIAN WRITING COMMANDS FOR THE ARMY ANNOUNCEMENTS FOR THE AIRLINE EVERY RUSSIAN SIGN AND SIGN OF RUSSIAN IS GONE BUT THIS IS THE EASY PART NO LITHUANIAN EVER WANTED TO SPEAK RUSSIAN THEY ALL WANT TO SPEAK ENGLISH ONE LITHUANIAN WORD AS FAR AS LINGUISTS KNOW HAS ENTERED THE ENGLISH LANGUAGE SCHWUMP IT MEANS TO SNIFF TOBACCO ACCORDING TO A 1959 ISSUE OF AMERICAN SPEECH MAGAZINE IT ONCE SAW CURRENCY IN PARTS OF TWO COUNTIES IN ILLINOIS THE TRAFFIC IN WORDS HOWEVER IS HEAVIER IN THE OTHER DIRECTION LITHUANIANS USED TO HAVE THEIR OWN WAY OF SAYING THINGS LIKE WEEKEND AND SPONSOR BUT VYKENDAS AND SPONSORIUS HAVE ERASED THEM IMIDZAS THEY THINK IMPROVES THEIR IMAGE AND FOR NEW IDEAS THEY'D RATHER IMITATE THAN INVENT WHY FIND A LITHUANIAN WAY TO SAY CHOPPED COW WITH COAGULATED CURD WHEN CISBURGERIS WILL DO SO MUCH OF THIS GOES ON THAT THE LANGUAGE COMMISSION HAS A FORCE OF PARALINGUISTS WHO PROWL THE STREETS FOR ILLICITPHRASE PUSHERS PERPETRATORS FACE WARNINGS FINES AND HUMILIATIONBYRADIO WE'RE INTERESTED IN PRIVATE OWNERS WHO HANG SIGNS SAYS DONATAS SMALINSKAS CHIEF LANGUAGE COP IN HIS VILNIUS OFFICE THEY THINK ENGLISH WILL ATTRACT FOREIGNERS WE TELL THEM ENGLISH IS NO GOOD ONE HOTEL POSTED ALL ITS SIGNS IN ENGLISH THE LANGUAGE COPS SLAPPED IT WITH FOUR LAWSUITS ANOTHER HAS A SIGN WITH HOTEL ENGLISH FOR VIESBUTIS IN BIG LETTERS AND VIESBUTIS IN SMALL LETTERS THE COPS WANT IT THE OTHER WAY AROUND WORD HAS IT THAT SOME DIVE IN ZIRMUNU STREET IS CALLING ITSELF A NIGHT BAR MR SMALINSKAS IS PLANNING A RAID YET HIS LINGUISTIC BETE NOIRE ISN'T AN ENGLISH ONE IT CONCERNS ANOTHER INDOEUROPEAN UPSTART ITALIAN VILNIUS HAS A PRIVATE RESTAURANT BY THE NAME OF RAVIOLI MR SMALINSKAS FINDS IT UNSAVORY WE HAVE A WORD FOR THIS IN LITHUANIAN HE SAYS KOLDUNAI' IT'S THE SAME AS THE ITALIAN DISH THEY HAVE BEEN SEVERELY CRITICIZED THEY WILL HAVE TO CHANGE THE SIGN THE LETTERING IS IN PINK AGAINST THE SHEETMETAL WALL OF A TINY BUILDING DOWNTOWN INSIDE BEHIND THE COUNTER WHITE THINGS FLOAT IN A POT OF BOILING WATER STANDING NEXT TO IT IS AUDRONE PILIBONIENE THE OWNER IN HER BOOK LITHUANIA'S UNYIELDING LINGUISTS ARE THE ONES WITH THE BAD NAME WE DECIDED TO USE THIS ITALIAN WORD SHE SAYS WE WANTED SOMETHING NEW A NEW WORD IF IT SO IRRITATES AND ANNOYS LINGUISTS WHAT CAN BE DONE WE LOOK WITH DREAD TO THE MOMENT WHEN WE HAVE TO SCRUB THIS NAME FROM OUR WINDOWS SHE SERVES UP A BOWL OF WHITE THINGS COVERED WITH SOUR CREAM AND ONIONS THEY TASTE LIKE BOILED DOUGHY STUFF WE DON'T WANT TO OFFEND THE LITHUANIAN LANGUAGE SHE SAYS BUT MS PILIBONIENE CAN'T HOLD HER TONGUE PEOPLE ENJOY A NEW WORD NOW WE HAVE TO THINK OF ANOTHER ONE AN ATTRACTIVE ONE SUCH A SMALL PLACE DON'T THESE LINGUISTS HAVE ANYTHING ELSE TO DO 9304120026 930412 REVIEW & OUTLOOK EDITORIAL DOLE VS CLINTON WITH THEIR FILIBUSTER AGAINST PRESIDENT CLINTON'S SPENDING BILL BOB DOLE AND THE SENATE REPUBLICANS HAVE ELBOWED THEIR WAY BACK INTO THE NATIONAL LIMELIGHT WE HOPE THEY HAVE SOMETHING WORTHWHILE THEY WANT TO DO NOW WE SAY THAT WITH SOME DOUBT BECAUSE THE HISTORIC REPUBLICAN PATTERN HAS BEEN TO SQUANDER PRECISELY THESE OPPORTUNITIES DEMOCRATS ARE BETTER IN AN ALLEY FIGHT AS GEORGE MITCHELL'S ALMOST DAILY ROUT OF GEORGE BUSH PROVED HAVING SHOWN MR CLINTON THAT THEY CAN'T BE IGNORED THE KINDER GENTLER REPUBLICANS WILL BE TEMPTED TO DECLARE VICTORY GIVE THE PRESIDENT TWOTHIRDS OF WHAT HE WANTS AND HOPE HE TREATS THEM BETTER NEXT TIME OUR OWN VIEW IS THAT WITH THEIR VICTORY THE PRICE OF REPUBLICAN COOPERATION SHOULD GO UP NOT DOWN FOR STARTERS THAT SHOULD MEAN STAKING THEIR CLAIM OVER SUBSTANCE NOT POLITICAL TACTICS IT ISN'T REASSURING TO HEAR THE FILIBUSTER DEFENDED WITH QUOTES LIKE THIS ONE FROM SENATE GOP WHIP ALAN SIMPSON WE WERE CLEARLY TOLD WE WOULD BE PLAYERS WE'VE BEEN STIFFED NOT TO SEEM FLIPPANT BUT WHO CARES MOST AMERICANS WHO READ THAT SIMPSON QUOTE WILL SIMPLY DISMISS THE WHOLE DISPUTE AS THE SAME OLD POLITICS REPUBLICANS DON'T NEED TO BE CONSULTED FOR THE SAKE OF CONSULTATION OR FOR THEIR OWN EGOS THEY NEED ISSUES THAT WILL MAKE AMERICANS BELIEVE CONSULTATION WILL MEAN SOMETHING IMPORTANT ON THAT SCORE THERE'S NOTHING WRONG WITH THE IMMEDIATE GOP GOAL OF PARING BACK THE 16 BILLION FISCAL STIMULUS THE SPENDING IS A POLITICAL BRIBE TO BIG CITY MAYORS AS EVEN SUCH DEMOCRATIC SENATORS AS RICHARD SHELBY AND BOB KERREY HAVE RECOGNIZED EXPOSING AND PUBLICIZING THE PORK BARREL HAS BEEN A PUBLIC SERVICE IT'S ALSO FAIR AS BOB DOLE SUGGESTS TO ASK MR CLINTON TO PAY FOR THE SPENDING HE WANTS TO DO WITH CUTS ELSEWHERE IN THE BUDGET MR CLINTON HAS DECLARED AN EMERGENCY SO HE CAN AVOID THE SPENDING CAPS FROM THE 1990 BUDGET LAW WHICH WAS ALSO SUPPOSED TO LOWER THE DEFICIT BUT THE CLINTON BUDGET RELEASED LAST WEEK SHOWED ONCE AGAIN THAT WHILE TAXES ARE SWIFT AND CERTAIN AT LEAST 65 BILLION IN SPECIFIC SPENDING CUTS ARE APPARENTLY DRAFT CHOICES TO BE NAMED LATER EVEN UNDER THE ADMINISTRATION'S ROSIEST SCENARIO SPENDING IN FISCAL 1998 WILL RISE TO 178 TRILLION YES TRILLION IT'S HARD TO BELIEVE A PRESIDENT WHO VOWS TO REINVENT GOVERNMENT CAN'T FIND 16 BILLION TO CUT AS FOR REVENUES MEANING TAXES THEY ARE EXPECTED TO RISE BY A FULL PERCENTAGE POINT OF GDP BY FISCAL 1997 TO 196 FROM 186 IN 1993 DESPITE ALL THE TALK ABOUT COURAGE AND DEFICIT REDUCTION THE FEDERAL GOVERNMENT GETS TO SWALLOW ANOTHER BIG GULP OF THE PRIVATE ECONOMY WHICH IS WHAT CREATES THE BIGGEST OPPORTUNITY FOR SENATE REPUBLICANS MR CLINTON SAYS HE WANTS TO GROW THE ECONOMY BY TAKING MONEY FROM TAXPAYERS AND GIVING IT TO GOVERNMENT TO INVEST THE THEORY IS THAT ROBERT REICH OR LAURA TYSON OR SOME OTHER GENIUS KNOWS HOW TO SPEND FOR A HIGHER RETURN THAN DO MILLIONS OF AMERICANS SPENDING THEIR OWN MONEY IF THIS WERE TRUE RUSSIA WOULD BE PARADISE THE ALTERNATIVE WHICH RUSSIA IS NOW LURCHING TOWARD IS TO GIVE INDIVIDUALS THE INCENTIVES TO SAVE AND INVEST AS THEY SEE FIT REPUBLICANS ONCE BELIEVED IN THIS BUT LOST THEIR WAY DURING THE BUSHDARMAN DETOUR THE VERY RADICALISM OF THE CLINTON PROGRAM NOW MAKES IT EASIER FOR REPUBLICANS TO REDISCOVER THOSE PRINCIPLES IN PARTICULAR THE OLD 1980S DEBATE BETWEEN PROGROWTH AND ANTIDEFICIT REPUBLICANS CAN BE RETIRED THERE'S NO REASON REPUBLICANS CAN'T STAND FOR BOTH LOWER SPENDING AND INCENTIVES TO SAVE AND INVEST THE BASIC POLITICAL THEME IS THE PRIVATE SECTOR IS A BETTER ENGINE OF PROSPERITY THAN THE GOVERNMENT AND WITHOUT SUCH A THEME REPUBLICANS WILL ALWAYS BE VULNERABLE TO THE CLINTON TAUNT THAT THEY PREFER FISCAL AUSTERITY OVER JOB CREATION ON THE TAXCUT SIDE THE REPUBLICAN FEAR REMAINS THE FAIRNESS ISSUE BUT THEY SHOULD TAKE HEART FROM THE SPECIAL ELECTIONS NOW TAKING PLACE AROUND THE COUNTRY ACCORDING TO MICHAEL BARONE OF US NEWS ONLY ONE OF NINE DEMOCRATS RUNNING THIS SPRING IS ARGUING FOR MORE TAXES ON THE RICH AND THAT CANDIDATE A FORMER CLINTON CAMPAIGN CHAIRMAN IN WISCONSIN LOST HIS PRIMARY LAST WEEK IN THE TEXAS SENATE RACE DEMOCRATIC APPOINTEE/INCUMBENT ROBERT KRUEGER HAS ALREADY VOTED AGAINST THE CLINTON BUDGET ASKED WHAT PRICE HE WANTS FOR PEACE WITH MR CLINTON BOB DOLE SAID BIG WE HOPE HE MEANS SOMETHING BIGGER THAN MERELY BEING A PLAYER WITH PRESIDENT CLINTON 9304120025 930412 PEPPERAND SALT TO RAISE IN MY AVANTGARDEN I DON'T LIKE EITHER/OAR 9304120024 930412 DOW CHEMICAL TO POST A DROP IN 1STPERIOD NET WEAK DEMAND FOR PRODUCTS IN EUROPE DECLINING US DRUG SALES CITED BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL CHEMICAL INDUSTRY BELLWETHER DOW CHEMICAL CO BATTERED BY WEAK DEMAND FOR BULK CHEMICALS AND PLASTICS IN EUROPE AND DECLINING DRUG SALES IN THE US IS EXPECTED TO REPORT THAT FIRSTQUARTER EARNINGS PLUNGED BY NEARLY TWOTHIRDS TO ABOUT 25 CENTS A SHARE FROM 65 CENTS REPORTED A YEAR AGO SECURITIES ANALYSTS SAY BUT AT LEAST DOW'S FIRSTQUARTER FIGURES WILL BE AN IMPROVEMENT ON THE 10 CENTS IN OPERATING EARNINGS THE CHEMICAL COMPANY POSTED IN LAST YEAR'S FOURTH QUARTER ANALYSTS ADD FOR 1992 DOW REPORTED A LOSS OF 248 MILLION OR 92 CENTS A SHARE AFTER TAKING A 433 MILLION RESTRUCTURING CHARGE SALES LAST YEAR TOTALED 1897 BILLION YEARAGO FIRSTQUARTER RESULTS WERE RESTATED FOR AN ACCOUNTING CHANGE THE FIRST QUARTER LOOKS BETTER THAN THE FOURTH FOR DOW ESPECIALLY IN EUROPE BUT IT'S STILL BAD SAYS PAUL RAMAN AN ANALYST WITH SG WARBURG & CO IN NEW YORK DOW'S COMPARATIVELY SLOW RECOVERY IN THE FIRST QUARTER IS INDICATIVE OF THE GRADUAL REBOUND EXPECTED FOR CYCLICAL CHEMICAL COMPANIES THIS YEAR AS THEY PULL OUT OF A MULTIYEAR EARNINGS TROUGH ANALYSTS SAY WITH THE RECOVERY JUST STARTING FIRSTQUARTER RESULTS ACROSS THE INDUSTRY WILL BE MIXED DEPENDING ON HOW MUCH EACH COMPANY RELIES ON BULK CHEMICALS AND PLASTICS FOR EARNINGS AND HOW RUTHLESS THEY HAVE BEEN IN CUTTING JOBS EUROPE'S ECONOMIC SLOWDOWN DOW BASED IN MIDLAND MICH DERIVES ABOUT 30 OF ITS SALES FROM EUROPE WHERE GERMAN ECONOMIC GROWTH IN PARTICULAR HAS COME TO A SCREECHING HALT THIS YEAR BASF GROUP FOR INSTANCE ONE OF GERMANY'S BIG THREE CHEMICAL COMPANIES AND THE MOST SIMILAR TO DOW IN OPERATING BUSINESSES EXPECTS THE COUNTRY'S ECONOMIC GROWTH TO BE FLAT AT BEST COMPARED WITH 1992 ABOUT 57 BILLION OR ABOUT 29 OF DOW'S 1993 BILLION IN ESTIMATED SALES THIS YEAR WILL COME FROM EUROPE MR RAMAN ESTIMATES BUT EUROPE WILL ACCOUNT FOR ONLY AN ESTIMATED 85 MILLION OR ABOUT 5 OF DOW'S ESTIMATED 166 BILLION IN OPERATING INCOME IN 1993 HE SAYS AS FOR DOW'S DRUG BUSINESS MARION MERRELL DOW INC WHICH IS 71OWNED BY DOW SAID LAST MONTH THAT ITS FIRSTQUARTER EARNINGS COULD FALL AS MUCH AS 70 BELOW THE 62 CENTS PER SHARE THAT ANALYSTS HAD EXPECTED THE KANSAS CITY MO DRUG COMPANY BLAMED THE DEPRESSED RESULTS ON DECLINING SALES OF ITS NICODERM ANTISMOKING PATCH AND PLUNGING SALES FOR A HANDFUL OF LEADING DRUGS FOR WHICH PATENT PROTECTION EXPIRED OR WILL EXPIRE IN A FEW YEARS MARION MERRELL ALSO CITED PRESSURE FROM THE FEDERAL GOVERNMENT TO CONTAIN RISING HEALTH COSTS DU PONT CO OF WILMINGTON DEL WHICH HAS BEEN ONE OF THE MOST AGGRESSIVE CHEMICAL COMPANIES IN ELIMINATING JOBS TO CUT COSTS IS LIKELY TO POST FIRSTQUARTER EARNINGS THAT ARE ROUGHLY FLAT WITH LAST YEAR'S 64 CENTS A SHARE MR RAMAN SAYS THE YEARAGO FIGURES WERE RESTATED TO REFLECT CERTAIN ACCOUNTING CHANGES OTHER ANALYSTS WHILE ALSO BULLISH ON DU PONT'S PROSPECTS AS THE ECONOMY RECOVERS ARE MORE CAUTIOUS IN A REPORT ISSUED LATE LAST MONTH GEORGE KRUG AN ANALYST WITH OPPENHEIMER & CO ESTIMATED THAT DU PONT WOULD POST EARNINGS OF ONLY 50 CENTS A SHARE FOR THE FIRST QUARTER MORE THAN ONETHIRD OF DU PONT'S BUSINESS IS IN EUROPE BUT THE COMPANY IS MUCH LESS INVESTED IN CYCLICAL CHEMICALS AND PLASTICS THAN EITHER DOW OR GERMANY'S BASF AND ITS DRUG BUSINESS CONTAINED IN A JOINT VENTURE WITH MERCK & CO MAKES AN INSIGNIFICANT CONTRIBUTION TO TOTAL PROFIT DU PONT CUTTING COSTS DU PONT IS ABOUT 7080 COMPLETED WITH A 1 BILLION COSTCUTTING PROGRAM ANNOUNCED NEARLY TWO YEARS AGO MR KRUG SAYS NEARLY 10000 JOBS HAVE BEEN ELIMINATED WITH ANOTHER 2000 TO 3000 EXPECTED TO BE CUT BY MIDYEAR HE SAYS THE COMPANY'S CONOCO OIL DIVISION IS ALSO LAYING OFF 1000 TO 2000 EMPLOYEES DU PONT HAS ABOUT 125000 EMPLOYEES DU PONT ALSO HAS UNDER WAY A LONGERTERM PROGRAM TO CUT COSTS BY ANOTHER 2 BILLION LARGELY THROUGH PRODUCTIVITY IMPROVEMENTS MR KRUG NOTES THAT WHILE THE SLUGGISH EUROPEAN ECONOMY AND SLOW RECOVERY IN THE US WILL PUT PRESSURE ON PRICING GAINS SALES VOLUMES SHOULD CONTINUE TO IMPROVE SLOWLY THE GREAT PROGRESS WHICH DU PONT HAS MADE IN LOWERING COSTS SHOULD MAGNIFY EARNINGS GAINS WHEN BUSINESS IMPROVES 9304120023 930412 WORLD MARKETS LONDON STOCKS FOLLOWING A DISMAL 1ST QUARTER ARE LIKELY TO GAIN IN 2ND PERIOD DESPITE HURDLES BY SHOBA PURUSHOTHAMAN SPECIAL TO THE WALL STREET JOURNAL LONDON DESPITE A PATH FRAUGHT WITH OBSTACLES IN THE CURRENT QUARTER THE LONDON STOCK MARKET IS EXPECTED TO COME OUT AHEAD VINDICATING TRUE BELIEVERS AFTER A FIRSTQUARTER PERFORMANCE THAT DIDN'T DELIVER AS PROMISED OF THE BENCHMARK FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX'S PREDICTED 1993 RISE OF BETWEEN 250 AND 300 POINTS SEERS BELIEVED MOST OF THIS WOULD BE ACHIEVED IN THE FIRST QUARTER BUT THE INDEX ON MARCH 30 STOOD AT 28787 JUST 32 POINTS HIGHER THAN ITS 1992 YEAREND LEVEL MOST 1993 YEAREND ESTIMATES PUT THE FTSE 100 BETWEEN 3100 AND 3200 FORECASTS FOR JUNE 30 RANGE FROM 2950 TO 3000 THE MARKET WHICH WAS CLOSED FRIDAY FOR EASTER HOLIDAY FINISHED LAST THURSDAY AT 28218 THE RECENT DISMAL PERFORMANCE PROVIDES THE POTENTIAL FOR GAINS SOME ANALYSTS SAID AND WEAKENING EQUITY MARKETS IN EUROPE WILL BOOST LONDON'S APPEAL THE FTSE HAS NOT DONE WHAT IT SHOULD HAVE IN THE FIRST QUARTER CHRIS STEBBIN STOCK SALESMAN AT DAIWA SECURITIES LTD SAID THERE'S STILL SOME STEAM LEFT AND MARK TINKER STRATEGIST AT KLEINWORT BENSON SECURITIES LTD SAID THINGS ARE GOING THE WRONG DIRECTION IN EUROPE AND THE RIGHT WAY HERE POTENTIAL PITFALLS INCLUDE THE PACE OF BRITAIN'S ECONOMIC RECOVERY GOVERNMENT FORECASTS CALL FOR THE ECONOMY TO GROW 125 THIS YEAR AND 3 NEXT YEAR THE STOCK MARKET'S RECENT WEAKNESS IS PARTLY ATTRIBUTABLE TO AN EMERGENCE FROM RECESSION THAT ISN'T AS QUICK AS HOPED FOR AND FURTHER SUCH SIGNS COULD KNOCK THE MARKET DOWN FURTHER UNLESS CONSUMER DEMAND THE PROPERTY MARKET AND OTHER GROWTH INDICATORS START PERKING UP GOVERNMENT BORROWING IS ANOTHER CLOUD EQUITY DEALERS FEAR THE GOVERNMENT'S LARGE FUNDING NEEDS WILL BOOST YIELDS ON GILTS OR GOVERNMENT BONDS AND DRAW FUNDS AWAY FROM EQUITIES YET STRONG DEMAND AT THE MOST RECENT GILT AUCTION SUGGESTED THAT INVESTORS HAVE ENOUGH MONEY TO SUPPORT BOTH THE STOCK AND BOND MARKETS CORPORATE RIGHTS ISSUES ALSO REMAIN A CONCERN PARTICULARLY AS SOME LARGE ISSUES ARE SCHEDULED FOR THE SECOND QUARTER THESE STOCK OFFERINGS DRAIN CASH FROM OTHER PURCHASES ALSO COMING SOON IS THE THIRD LEG OF THE PRIVATIZATION OF BRITISH TELECOMMUNICATIONS ANALYSTS SAID THE GOVERNMENT IS EAGER TO CONDUCT THE SALE BY MIDYEAR AS A DELAY WOULD POSE RISKS FROM FACTORS SUCH AS INFLATION THAT COULD MAKE THE STOCK MARKET SKITTISH THE GOVERNMENT HOLDS 22 OF BT AND THE SALE MAY TOTAL ABOUT 5 BILLION 764 BILLION ON THE POLITICAL FRONT LOCAL ELECTIONS IN NEWBURY IN EARLY MAY COULD UPSET THE STOCK MARKET IF VOTERS SWING TOWARD THE OPPOSITION LABOR PARTY AMONG POSITIVE SIGNS SOME ANALYSTS SAID EUROPEAN INTEREST RATES INEVITABLY WILL DROP BY MIDYEAR MEANWHILE WITH BRITAIN AMONG EUROPE'S GROWTH LEADERS THE POUND STERLING IS EXPECTED TO REMAIN STRONG ENOUGH TO ALLOW THE BANK OF ENGLAND TO MAKE ANOTHER CUT IN THE BASE LENDING RATE NOW AT A 16YEAR LOW OF 5 A CUT OF ONE PERCENTAGE POINT WOULD BE A SIGNIFICANT BOOST FOR THE ECONOMY AND THE MARKET ANALYSTS SAID IN ADDITION SOME DEALERS SAID CONTINENTAL EUROPEAN INVESTORS WILL SWITCH THEIR INVESTMENTS INTO THE REVIVING BRITISH ECONOMY GOLDMAN SACHS & CO ANALYSTS SAID THAT ALTHOUGH MONEY MARKETS MAY HAVE FACTORED IN ANOTHER RATE CUT A GOOD PROPORTION OF THE POSITIVE REACTION IN THE EQUITY MARKET WILL ONLY OCCUR AFTER RATES FALL THUS SUGGESTING FURTHER GAINS FOR STOCKS GIVEN THE POTENTIAL FOR BOTH UPS AND DOWNS IN LONDON STOCK PRICES ANALYSTS ADVISED MAKING SELECTIVE STOCK PICKS SUCH AS BT RATHER THAN SECTOR PLAYS ANALYSTS EXPECT THE CURRENT MOVE AWAY FROM CYCLICALS TO CONTINUE THROUGH THE SECOND QUARTER MR TINKER OF KLEINWORT BENSON SEES BUY LISTS ADDING STOCKS WITH GOOD EARNINGS POTENTIAL SUCH AS GUINNESS IN THE BREWING SECTOR HE SAID THE SECOND QUARTER WILL BE CRUCIAL FOR PHARMACEUTICAL STOCKS WITH US HEALTHCARE REFORM PROPOSALS EXPECTED IN MAY HE SAID FURTHER DECLINES FOR DRUG STOCKS WILL PROVIDE A BUYING OPPORTUNITY STRATEGISTS ALSO FAVOR VODAFONE GROUP A CELLULAR COMMUNICATIONS COMPANY WITH INTERNATIONAL EXPOSURE TO A VARIETY OF MARKETS AND WITH BOTH SHORTTERM AND LONGTERM POTENTIAL UTILITIES ARE CONSIDERED ANOTHER STRONG AND SAFE BET REGIONAL WATER COMPANIES SUCH AS SEVERN TRENT AND WESSEX WATER ARE EXPECTED TO HAVE STRONG PERFORMANCES POWERGEN AN ELECTRICITY UTILITY HAS WON CONTRACTS RECENTLY THAT ANALYSTS SAID WILL PROVIDE STABLE EARNINGS FOR THE NEXT FIVE YEARS TOKYO STOCKS ENDED MIXED FRIDAY AS THE RANKS OF FOREIGN INVESTORS WERE DEPLETED BY THE EASTER HOLIDAY CLOSURE OF MOST BIG MARKETS WORLDWIDE THE NIKKEI 225STOCK INDEX WHICH ROSE 13804 POINTS THURSDAY DROPPED 7509 TO 1989218 ON MONDAY IN TOKYO THE NIKKEI INDEX EASED 5873 POINTS TO CLOSE THE MORNING SESSION AT 1983345 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 750 MILLION SHARES UP FROM 664 MILLION SHARES ON THURSDAY BUT THE TURNOVER WAS INFLATED BY BUYING RELATED TO FRIDAY'S SPECIAL QUOTATIONS TO SETTLE APRIL OPTIONS PRICES THE BROADER MARKET WAS MIXED WITH GAINERS TOPPING LOSERS 568490 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 948 POINTS THURSDAY FELL 542 TO 156328 THE MARKET SCORED MORNING GAINS ON COVERING OF SHORT OR OVERSOLD POSITIONS WHEN EXPECTED PRESSURE DIDN' MATERIALIZE FROM FRIDAY'S SPECIAL QUOTATION THE NIKKEI JUMPED ABOVE 20000 AS PUBLIC PENSION FUNDS BEGAN BUYING AHEAD OF A NEW ALLOTMENT OF GOVERNMENT MONEY TO FUND MANAGERS THIS WEEK BUT SELLING BY DEALERS TO ADJUST POSITIONS BEFORE THE WEEKEND AGAIN LEFT THE NIKKEI BELOW 20000 PURCHASERS FOCUSED ON THE OVERTHECOUNTER MARKET AND SOME LAGGARD SECTORS SUCH AS TEXTILES BLUECHIP EXPORTERS DECLINED ON THE YEN'S CONTINUED PUSH TO RECORD HIGHS ELSEWHERE MILAN EQUITIES ROSE SLIGHTLY ON OPTIMISM ABOUT THE ITALIAN ECONOMY'S OUTLOOK BECAUSE OF A SURGE IN EXPORTS FOLLOWING THE LIRA'S STEEP DEPRECIATION THE MARKET BEGAN SHRUGGING OFF THE COUNTRY'S CONTINUING CORRUPTION SCANDAL SEOUL SHARES RALLIED IN HEAVY VOLUME AS SMALL INVESTORS LEAPED BACK INTO THE MARKET TAIPEI STOCKS WERE HIT BY PROFITTAKING AND FELL FOR THE SECOND SESSION IN A ROW 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 9304120022 930412 ECONOMY MARCH CONSUMER PRICES ROSE JUST 01 FURTHER CALMING FEARS ABOUT INFLATION BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMERS GOT THEIR WAY LAST MONTH AS THE RECENT SPURT IN PRICES SLOWED DOWN THE 1993 INFLATION GENIE HAS GONE BACK IN THE BOTTLE BUT I DON'T THINK IT'S GONE FOR GOOD SAID DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY COMING ON THE HEELS OF A REPORT SHOWING MODERATION OF PRICES AT THE PRODUCER LEVEL AS WELL THE SLIGHT RISE TEMPERED FEARS OF INCREASING INFLATION THIS ALONG WITH THE PRODUCER PRICE INDEX REPORTED THURSDAY SHOULD PUT FEARS OF INFLATION TO REST SAID MARK ZANDI CHIEF ECONOMIST FOR REGIONAL FINANCIAL ASSOCIATES MR RATAJCZAK SAID HE THINKS RETAILERS MISREAD THE CONSUMER AND SAID THESE PEOPLE ARE WILLING TO ACCEPT THE PRICE INCREASE' AND THEY'RE NOT HE DID HOWEVER PREDICT THE RETURN OF HIGHER INFLATION IF THE ECONOMY PICKS UP MR ZANDI AGREED THAT THE SMALL MARCH INCREASE WAS DUE TO A BACKLASH FROM THE HIGH FIGURES OF THE PREVIOUS MONTHS HE AND MR RATAJCZAK PREDICTED MODERATE INCREASES OF ABOUT 03 IN APRIL AND MAY NOTABLY IN THE MARCH NUMBERS THE RISE IN THE COST OF MEDICAL CARE SLOWED TO 03 FROM 05 IN FEBRUARY AND WAS THE LOWEST RATE SINCE 1984 THE ECONOMISTS ATTRIBUTE THE SLOWDOWN TO REFORM PRESSURES AND FEARS IN THE HEALTH CARE INDUSTRY OF RATE REGULATION WE'VE SCARED THE DOCTORS SAID MR RATAJCZAK IT SHOWS THAT THE CONSUMERS AREN'T GOING TO TAKE THE PRICE INCREASES CLOTHING PRICES CAUSED RIPPLES IN THE INDEX BY PLUNGING 05 IN MARCH THE DROP FOLLOWS INCREASES OF 08 IN JANUARY AND 15 IN FEBRUARY IN THE FOOD CATEGORY PORK PRICES JUMPED 16 AND LETTUCE PRICES EXPLODED 20 BECAUSE OF FLOODING IN ARIZONA DESPITE THE PRICE SLOWDOWN CONSUMERS FAILED TO GAIN MORE BUYING POWER LAST MONTH THE LABOR DEPARTMENT SAID A 05 PAY INCREASE WAS OFFSET BY RISING PRICES AND A REDUCTION IN HOURS ALL THE FIGURES ARE ADJUSTED FOR SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED CHANGES IN THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR MARCH MARCH CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM MARCH 1992 WERE 9304120021 930412 BUSINESS BRIEF SOUTHDOWN'S LARGEST HOLDER LAUNCHES PROXY FIGHT FOR THREE SEATS ON BOARD HOUSTON SOUTHDOWN INC'S LARGEST SHAREHOLDER LAUNCHED A PROXY FIGHT FOR THREE OF THE NINE SEATS ON THE CEMENT AND CONCRETE MAKER'S BOARD RICHARD C BLUM & ASSOCIATES SAID IT FILED PROXY MATERIALS WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER AN OPPOSING SLATE OF NOMINEES FOR THE THREE SEATS THAT ARE UP FOR ELECTION AT THE COMPANY'S MAY 20 ANNUAL MEETING BLUM & ASSOCIATES A SAN FRANCISCO INVESTMENT ADVISORY FIRM CONTROLS 252 MILLION SOUTHDOWN SHARES OWNED BY THE CARPENTERS PENSION TRUST FOR SOUTHERN CALIFORNIA THAT REPRESENTS A 1474 STAKE IN THE COMPANY MICHAEL KLEIN A LAWYER FOR THE SHAREHOLDER GROUP SAID THE GROUP'S SLATE CONSISTS OF ROBERT J SLATER THE FORMER CHAIRMAN OF MEDUSA CORP A CEMENT MAKER BASED IN CLEVELAND HEIGHTS OHIO STEPHEN B ORESMAN A FORMER PARTNER OF THE BOOZ ALLEN & HAMILTON INC MANAGEMENT CONSULTING FIRM AND RONALD N TUTOR THE COCHAIRMAN OF THE PENSION TRUST'S BOARD AND CURRENTLY A SOUTHDOWN DIRECTOR THESE GUYS KNOW A LOT ABOUT THE BUSINESS AND HAVE HAD NO PRIOR CONTACT EXCEPT FOR MR TUTOR WITH BLUM & ASSOCIATES OR THE PENSION TRUST MR KLEIN SAID A SPOKESMAN FOR SOUTHDOWN SAID THE COMPANY WOULDN'T COMMENT ON THE FILING UNTIL IT REVIEWS THE DOCUMENTS AND THE BACKGROUNDS OF THE SHAREHOLDER GROUP'S NOMINEES THE COMPANY'S NOMINEES FOR THE THREE SEATS ARE G WALTER LOEWENBAUM II ITS PRESENT CHAIRMAN AND THE CHAIRMAN OF SOUTHCOAST CAPITAL CORP AN INVESTMENT BANKING FIRM IN NEW ORLEANS FRANK J RYAN THE FORMER PRESIDENT OF AIR PRODUCTS & CHEMICALS INC AN INDUSTRIAL GAS SUPPLIER BASED IN ALLENTOWN PA AND MICHAEL A NICOLAIS A CURRENT DIRECTOR AND AN OFFICER OF GOLDMAN CAPITAL MANAGEMENT INC A NEW YORK INVESTMENT FIRM ON APRIL 2 BLUM & ASSOCIATES SAID IT WAS CONSIDERING A PROXY FIGHT AFTER THE COMPANY FAILED TO RENOMINATE MR TUTOR TO THE BOARD THE FIRM SAID IT HAS LOST CONFIDENCE IN SOUTHDOWN'S MANAGEMENT IT HAS ALSO LOST MONEY BLUM & ASSOCIATES AND THE PENSION TRUST IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION IN 1991 DISCLOSED THAT THEY BOUGHT THEIR SOUTHDOWN STOCK AT PRICES RANGING FROM 1213 TO 1850 A SHARE SOUTHDOWN'S COMMON STOCK CLOSED AT 9875 A SHARE UP 125 CENTS IN NEW YORK STOCK EXCHANGE TRADING THURSDAY LAST YEAR THE COMPANY POSTED A LOSS OF 406 MILLION OR 269 A SHARE ON REVENUE OF 5074 MILLION THE SHAREHOLDER GROUP SAID SOUTHDOWN HAS HAD AN INSIDERDOMINATED BOARD UNDER MR LOEWENBAUM THE GROUP BLAMES THE BOARD FOR THE COMPANY'S EARNINGS DECLINE AND LARGE LOSSES IN 1991 AND 1992 A DEPRESSED STOCK PRICE EXCESSIVE GRANTS OF PERQUISITES AND STOCK OPTIONS TO SENIOR EXECUTIVES AND A DIVERSIFICATION STRATEGY THAT LED TO A WRITEOFF FOR AN UNPROFITABLE HAZARDOUSWASTE DISPOSAL JOINT VENTURE SOUTHDOWN SUED THE SHAREHOLDER GROUP APRIL 2 CHARGING IT WAS TRYING TO SEIZE CONTROL OF THE COMPANY AND HADN'T FULLY DISCLOSED ITS INTENTIONS IN SEC FILINGS MR KLEIN WHO IS SERVING AS THE SPOKESMAN FOR THE DISSIDENT SHAREHOLDER GROUP DENIED THE CHARGES POINTING OUT THAT EVEN IF THE GROUP WINS ALL THREE CONTESTED BOARD SEATS IT STILL WOULDN'T HAVE ENOUGH SEATS TO EXERCISE CONTROL OVER THE COMPANY MR KLEIN SAID THE DISSIDENT GROUP WILL SEEK TO AMEND THE COMPANY'S BYLAWS TO LIMIT THE NUMBER OF DIRECTORS TO NINE THAT WOULD PREVENT THE COMPANY FROM ADDING ITS NOMINEES TO THE BOARD IF THEY ARE DEFEATED IN THE SHAREHOLDER VOTE THE ATTORNEY SAID THE GROUP'S NOMINEES IF ELECTED WILL ASK THE BOARD TO CREATE A STRATEGIC PLANNING COMMITTEE AND A CORPORATE GOVERNANCE COMMITTEE ON WEDNESDAY SOUTHDOWN SENT ITS SHAREHOLDERS A LETTER URGING THEM TO SUPPORT THE COMPANY'S SLATE OF NOMINEES TO THE BOARD THE LETTER CRITICIZED MR BLUM FOR HIS ASSOCIATION WITH SEVERAL COMPANIES THAT SETTLED SHAREHOLDER LAWSUITS FOR ALLEGED SECURITIES FRAUD THAT OCCURRED WHILE HE SAT ON THEIR BOARDS AND MR TUTOR FOR ATTENDING ONLY ONE OF FIVE BOARD MEETINGS AFTER HIS APPOINTMENT LAST YEAR THE COMPANY ALSO SAID IT HAD OFFERED TO RENOMINATE MR TUTOR TO THE BOARD TO AVOID AN EXPENSIVE PROXY FIGHT BUT THAT HE AND MR BLUM REJECTED THE OFFER IN A PRELIMINARY PROXY FILING WITH THE SEC THE COMPANY ESTIMATED ITS PROXY SOLICITATION WOULD COST ABOUT 15 MILLION MR KLEIN SAID THE SHAREHOLDER GROUP EXPECTS TO INCUR ABOUT 750000 OF EXPENSES FROM ITS PROXY SOLICITATION 9304120020 930412 LEISURE & ARTS TELEVISION THE NOTSOBRAVE NEW WORLD OF TV BY ROBERT GOLDBERG THERE'S BEEN A LOT OF TALK RECENTLY ABOUT THE BRAVE NEW WORLD OF TELEVISION 500 CHANNELS ONLY FIVE YEARS FROM NOW TEN AT THE LATEST THERE'LL BE A STATION FOR EVERY NICHE AND MICRONICHE THE BALDINGLAWYER CHANNEL THE DYSFUNCTIONALFAMILY CHANNEL THE WOK CHANNEL ONCE AGAIN IT SEEMS OUR PASSION FOR TECHNOLOGY FIBER OPTICS CHANNEL COMPRESSION IS OUTSTRIPPING OUR COMMON SENSE BECAUSE WHO'S GOING TO PAY FOR ALL THOSE CHANNELS AND MORE IMPORTANT WHAT EXACTLY ARE THEY GOING TO FILL THEM WITH THIS WEEK WE GET A COUPLE OF CLUES OF WHAT THE 500CHANNEL ERA MIGHT LOOK LIKE TWO VERY DIFFERENT PROGRAMS BOTH FROM NAME TALENT FIRST A SITUATION COMEDY WHICH IS LOGICAL BECAUSE GIVEN THE CURRENT RATIOS OF TV PROGRAMMING AT LEAST 150 OF THE NEW CHANNELS WILL SURELY BE DEVOTED TO SITCOMS DUDLEY CBS FRIDAYS 8309 PM EST IS BRITISH COMEDIAN DUDLEY MOORE'S FIRST FORAY INTO AMERICAN TELEVISION AS DUDLEY BRISTOL MIDDLEAGED BACHELOR CABARET PERFORMER AND MANABOUTTOWN MR MOORE TICKLES THE IVORIES IN A NEW YORK CLUB CALLED LIAISONS HE'S SORT OF A WHITE BOBBY SHORT OR AT LEAST HE'S SHORT ANYWAY AS ALWAYS IN SITCOMLAND MR MOORE IS GIVEN A LIVING ROOM AND A LITTLE ENTOURAGE OF AMUSING SIDEKICKS A NERVOUS MANAGER MAX WRIGHT A HISPANIC MAID WITH WHOM HE CAN'T COMMUNICATE LUPE ONTIVEROS AND A SNEERING CLUB OWNER JOEL BROOKS AND OF COURSE ACCORDING TO THE FIRST RULE OF THE SITCOM CREED THIS ROGUE DIVORCE MUST SOON BE SADDLED WITH A CHILD HE HASN'T SEEN IN YEARS HARLEY CROSS NOT TO MENTION AN EXWIFE JOANNA CASSIDY LURKING AROUND THE FRINGES THE BACHELOR WILL TRY TO RAISE HIS LEATHERJACKETED TROUBLED TEENAGE SON DURING HIS 20MINUTE SET BREAKS ALL OF WHICH ADDS UP TO A COMEDY THAT'S OCCASIONALLY AMUSING MOSTLY CLOYING I DIDN'T MEAN TO BE CHARMING SAYS DUDLEY IT JUST SLIPS OUT MR MOORE DOES BRING A FEW TALENTS TO THE PARTY HE PLAYS HIS OWN PIANO AND HE'S ABLE TO SCRUNCH UP HIS FACE IN AN ENDEARING WAY HE ALSO MANAGES TO MAKE THE MOST OF THE FEW GOOD LINES HE'S GIVEN A SENSE OF RESPONSIBILITY PLEASE I CAN SENSE RESPONSIBILITY TWO OR THREE MILES OFF BUT AS CREATED BY SUSAN BEAVERS DUDLEY IS A TEPID PIECE OF WORK AND DESPITE THE PRESENCE OF MR MOORE ABSOLUTELY INTERCHANGEABLE WITH ANY OF TWO DOZEN OTHER SITCOMS ABOUT PEOPLE AND THEIR FURNITURE DUDLEY IS MOST INTERESTING IN THAT IT PROVES THAT THE NETWORKS WILL NEVER TIRE OF CRANKING OUT THE SAME OLD FORMULA NOW AND IN THE 500CHANNEL FUTURE ACROSS NEW YORK AND AT THE OTHER END OF THE DIAL IS THE KIND OF EXPERIMENTAL ARTISTIC TV REPRESENTED BY THE CABINET OF DR RAMIREZ GREAT PERFORMANCES PBS WEDNESDAY 911 PM EDT CHECK LOCAL LISTINGS A 1990S HOMAGE TO THE FAMOUS 1919 GERMAN EXPRESSIONIST FILM THE CABINET OF DR CALIGARI SURELY THERE WILL ALSO BE A PLACE IN OUR 500CHANNEL WORLD FOR THIS TYPE OF RISKTAKING TELEVISION AVANTGARDE DIRECTOR PETER SELLARS HAS ASSEMBLED AN IMPRESSIVE CAST PETER GALLAGHER JOAN CUSACK MIKHAIL BARYSHNIKOV FOR WHAT IS SURELY THE FIRST MADEFORTV SILENT MOVIE FOR MR SELLARS TODAY'S NEW YORK RESEMBLES BERLIN BETWEEN THE WARS A MOOD OF ECONOMIC COLLAPSE A PRIVATE LOSS OF CONFIDENCE AND AN UNSPOKEN SENSE THAT THE BOTTOM IS FALLING OUT AGAINST THIS BACKDROP HE PLACES MR GALLAGHER AND MS CUSACK AS TWO SUCCESSFUL YOUNG STOCKBROKERS WHOSE LIVES ARE SLOWLY STARTING TO UNRAVEL PERSONAL TRAGEDIES AND PROFESSIONAL SETBACKS ARE COMPOUNDED BY A SERIES OF UNNERVING ENCOUNTERS WITH TWO STREET PEOPLE MR SELLARS'S WALL STREET IS AN EERIE DESOLATE PLACE MOST OF THE WORKERS HAVE BEEN FIRED OR CARTED OFF TO JAIL AND BANKRUPTCY COURT THE REMAINING FEW ARE GROUND DOWN BY GLITTERING SKYSCRAPERS AND ASSAULTED BY THE HOMELESS ON THE SIDEWALKS AND IN THEIR GUILTY DREAMS THE CABINET OF DR RAMIREZ IS AN AMBITIOUS FASCINATING WORK AND JUST ABOUT UNWATCHABLE WITH NO DIALOGUE AND VERY LITTLE STORY LINE IT REMINDS US THAT TELEVISION CAN BE BUILT SOLELY OF IMAGES AND MUSIC A DIRECTION THAT ONLY THE BRAVEST DARE TO TRAVEL THE DISMANTLING OF THE STOCKBROKERS' LIVES PLAYS OUT AS A TONE POEM IN A HALLUCINATORY WORLD JOHN ADAMS'S OMINOUS MUSIC MATCHED TO LONG HAUNTING SHOTS OF BARREN STREETS AND ANGUISHED FACES IN THIS STYLIZED EXPRESSIONISTIC APPROACH MOOD AND EMOTION ARE CLEARLY MORE IMPORTANT THAN ACTION AND THE SYMBOLIC OUTWEIGHS THE LITERAL BUT OVER TWO HOURS IT WOULD HAVE BEEN NICE TO HAVE THE TINIEST HINT OF A COHERENT NARRATIVE EVEN THE GERMAN EXPRESSIONISTS OFFERED UP SOME KIND OF STORY LINE THE DRACULA SCHEMA OF NOSFERATU THE UNDERWORLD PLOTTINGS OF DR MABUSE THE GAMBLER BUT NOT MR SELLARS THIS DIRECTOR IS IN FACT RELENTLESS IN THIS RAPIDFIRE QUICKCUT MTV ERA MR SELLARS TAKES AN ALMOST PERVERSE PLEASURE IN HIS SLOW UNYIELDING TEMPO A TEMPO AS SOMBER AS SOMNOLENT AS A FUNEREAL DIRGE HE HOLDS SINGLE SHOTS STATIC SHOTS ALMOST UNBEARABLY LONG A HALLWAY AN ESCALATOR AS THE MUSIC DRONES ON THE MONOTONIC CHANTING OF TIBETAN MONKS THERE ARE MOMENTS WHEN YOU THINK HE JUST MIGHT GET AWAY WITH IT EPIPHANIC MOMENTS OF LYRICAL ALMOST TRANSCENDENT BEAUTY THAT ARE RARE ON TV BUT MOSTLY THE VIEWER JUST COMES AWAY ANNOYED BY THE SHEER NUMBING REPETITION THE SAME IMAGES THE SAME POINTS MADE OVER AND OVER THE STOCKBROKERS THRASH IN THEIR SLEEP THEY RUN THEIR HANDS THROUGH THEIR HAIR THEY STARE FORLORNLY INTO SPACE AGAIN AND AGAIN MAYBE LIKE THE VIEWERS THEY'RE LOOKING AT THE FUTURE AND WHAT THEY SEE ISN'T MUCH WILL IT BE MORE OF THE FORMULAIC FAILURES OF DUDLEY OR THE INTRIGUING IF UNWATCHABLE FAILURES OF THE CABINET OF DR RAMIREZ THE 500CHANNEL ERA WILL NO DOUBT BE A DISAPPOINTMENT BUT STILL RIGHT NOW IT SHIMMERS ON THE HORIZON LIKE HOPE THE HOPE THAT ON JUST ONE OF THOSE 500 CHANNELS WE MIGHT GET A PROGRAM THAT ACTUALLY WORKS 9304120019 930412 LAW LEGAL BEAT JURORS DEBATE RODNEY KING CASE AS POLICE PRESENCE IS HEIGHTENED BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES JURORS WHO WILL DECIDE THE FATE OF FOUR POLICEMEN ACCUSED OF VIOLATING RODNEY KING'S CIVIL RIGHTS COMPLETED THEIR FIRST FULL DAY OF DELIBERATIONS YESTERDAY AS THE POLICE DEPARTMENT ENTERED A STATE OF HEIGHTENED READINESS IN THE AFTERNOON THE JURY IN THE FEDERAL COURT TRIAL ASKED TO SEE A TRANSCRIPT OF TESTIMONY BY A KEY WITNESS CALIFORNIA HIGHWAY PATROL OFFICER MELANIE SINGER SHE WAS CALLED BY THE DEFENSE BUT WAS WIDELY BELIEVED TO HAVE HELPED THE PROSECUTION CASE MS SINGER WEPT ON THE STAND AND SAID SHE WOULD NEVER FORGET SEEING DEFENDANT LAURENCE POWELL STRIKE MR KING ON THE HEAD SIX TIMES JUDGE JOHN DAVIES DENIED THE JURY'S REQUEST SAYING THAT PROVIDING A TRANSCRIPT WOULD TEND TO EMPHASIZE THE TESTIMONY OF ONE WITNESS OVER ANOTHER ON A SUNNY AND MILD EASTER SUNDAY LOS ANGELES REMAINED CALM BUT TENSE AS AREA MINISTERS AND OTHER LEADERS CALLED FOR A PEACEFUL RESPONSE NO MATTER WHAT THE JURY VERDICT DESPITE THE PRESENCE OF 600 EXTRA POLICE ON THE STREET THE CITY LOOKED MUCH THE SAME AS ON ANY SUNDAY POCKETS OF NEAR HYSTERIA IN MOSTLY WHITE NEIGHBORHOODS FOMENTED BY NEIGHBORHOOD GROUPS PREACHING PREPAREDNESS BUT SPREADING UNSUBSTANTIATED RUMORS SEEMED TO GIVE WAY TO WATCHFUL WAITING AS HE HANDED THE CASE TO JURORS SATURDAY JUDGE DAVIES ADDED AN UNUSUAL INSTRUCTION TELLING THEM NOT TO CONSIDER ANY EXTERNAL CONSEQUENCES OF THEIR VERDICTS LAST YEAR THE WORST AMERICAN URBAN RIOTS OF THE CENTURY BROKE OUT AFTER ACQUITTALS ON NEARLY ALL CHARGES IN THE OFFICERS' STATE TRIAL BEFORE THEY WERE CHOSEN TO SERVE IN THE CURRENT CASE THE JURORS ACKNOWLEDGED THEY KNEW ABOUT THE UNREST BUT WOULD BE ABLE TO SET IT ASIDE IN THEIR MINDS THE 12PERSON JURY WITH TWO BLACK MEMBERS WAS DRAWN FROM THE WIDE LOS ANGELES AREA SERVED BY THE FEDERAL COURT HERE LAST YEAR'S TRIAL WAS HELD IN SUBURBAN SIMI VALLEY AND THE JURY CHOSEN FROM THAT AREA INCLUDED NO AFRICANAMERICANS YESTERDAY THE JURORS ABOUT WHOM LITTLE HAS BEEN DISCLOSED SAID THEY HAD CHOSEN A FOREMAN A BEARDED WHITE MAN WHO SAID DURING JURY SELECTION THAT THE VERDICTS LAST YEAR WERE NO SURPRISE AND THAT HE HAS TWO NEIGHBORS WHO ARE POLICEMEN IN HIS JURY INSTRUCTIONS JUDGE DAVIES EXPLAINED THAT TO REACH GUILTY VERDICTS JURORS MUST FIND THAT THE OFFICERS USED AN UNREASONABLE AMOUNT OF FORCE IN ARRESTING MR KING AND INTENDED TO DO SO ON THE ISSUE OF FORCE THE JUDGE SAID THE REASONABLENESS OF THE USE OF FORCE MUST BE JUDGED FROM THE PERSPECTIVE OF A REASONABLE OFFICER UNDER THE SAME CIRCUMSTANCES RATHER THAN WITH THE PERSPECTIVE OF PERFECT HINDSIGHT THAT INSTRUCTION REQUIRED BY A RECENT SUPREME COURT POLICE BRUTALITY CASE MIGHT BENEFIT THE DEFENDANTS HOWEVER ON THE ISSUE OF INTENT THE JUDGE SAID THE DEFENDANTS DIDN'T NEED TO HAVE THE CONSTITUTION IN MIND TO INTENTIONALLY VIOLATE IT THEY ONLY NEEDED TO BE AWARE THEY WERE USING TOO MUCH FORCE WHILE MAKING AN ARREST AND WERE USING THAT FORCE ON PURPOSE DEFENSE LAWYERS HAD ARGUED THAT THE OFFICERS HAD TO BE AWARE OF THE SPECIFIC LAW THEY WERE VIOLATING THE INSTRUCTIONS FOLLOWED A CLOSING ARGUMENT BY PROSECUTOR BARRY KOWALSKI CONCLUDING THE GOVERNMENT'S CASE HE SCREENED THE FAMOUS AMATEUR VIDEOTAPE OF THE 1991 INCIDENT ONE LAST TIME AND URGED JURORS TO USE THEIR STREET SENSE IT'S WRONG TO BEAT A MAN WHEN HE'S LYING DOWN ON THE GROUND MR KOWALSKI SAID YOU KNOW THAT IN THE SCHOOLYARD WHEN YOU ARE A KID LET'S CALL IT LIKE IT IS LADIES AND GENTLEMEN THEY WERE BULLIES WITH BADGES THE COMMENTS CAME IN REBUTTAL TO THE LAST CLOSING STATEMENT BY A DEFENSE LAWYER WHO SOUGHT TO PORTRAY MR KING AS AN AGGRESSOR WHO DESERVED THE TREATMENT HE GOT MICHAEL STONE WHO REPRESENTS OFFICER LAURENCE POWELL SAID MR KING SHOULD HAVE BEEN SENT TO PRISON AFTER LEADING OFFICERS ON A HIGHSPEED CHASE INSTEAD HE SAID MR KING LIED TO EVADE PROSECUTION IT WORKED THEY'RE HERE AND HE'S NOT MR STONE SAID THREE OF THE OFFICERS MR POWELL THEODORE BRISENO AND TIMOTHY WIND ARE ACCUSED OF VIOLATING MR KING'S FOURTH AMENDMENT RIGHT TO BE FREE FROM AN UNREASONABLE SEIZURE OR ARREST ON THE VIDEOTAPE MR POWELL AND MR WIND ARE SEEN STRIKING MR KING WITH BATONS AND MR WIND ALSO KICKS HIM MR BRISENO FORCEFULLY STEPS ON THE SUSPECT THE FOURTH DEFENDANT SGT STACEY KOON DOESN'T STRIKE MR KING ON THE TAPE AS THE SUPERVISING OFFICER HOWEVER HE WAS CHARGED WITH VIOLATING THE 14TH AMENDMENT'S PROHIBITION AGAINST ALLOWING AN UNLAWFUL ARREST TO OCCUR DURING THE SIXWEEK TRIAL SOME 61 WITNESSES TOOK THE STAND THEY RANGED FROM EXPERTS ON THE USE OF FORCE TO CIVILIANS WHO SAW THE BEATING FIRST HAND THE VIDEOTAPE WAS PLAYED FOR THE JURORS REPEATEDLY BY LAWYERS FOR BOTH SIDES A NOVEL LEGAL THEORY KNOWN AS SENTENCING ENTRAPMENT HAS BEEN UPHELD BY A FEDERAL APPEALS COURT A THREEJUDGE PANEL OF THE APPEALS COURT IN ST LOUIS SAID SUCH ENTRAPMENT TAKES PLACE WHEN POLICE LURE DRUG DEALERS INTO SELLING UNUSUALLY LARGE AMOUNTS OF NARCOTICS THE QUANTITY IS IMPORTANT BECAUSE UNDER FEDERAL SENTENCING GUIDELINES A BIGGER AMOUNT TRIGGERS A LONGER PRISON TERM IN THE CASE BEFORE THE APPEALS COURT POLICE MADE SEVEN BUYS FROM A DEALER TOTALING 504 GRAMS OF CRACK UNDER SENTENCING GUIDELINES 50 GRAMS IS THE AMOUNT THAT TRIGGERS A MINIMUM 10YEAR PRISON SENTENCE SOMEONE WHO SELLS 499 GRAMS IN CONTRAST WOULD GET ONLY A FIVEYEAR MINIMUM TERM A LOWER COURT CALCULATED THE DEALER'S SENTENCE AS IF HE HAD SOLD LESS THAN 50 GRAMS BECAUSE THE JUDGE SAID THE DEALER WAS ENTRAPPED THE APPEALS COURT WHICH PREVIOUSLY HAS AVOIDED TAKING A STAND ON THE ENTRAPMENT THEORY SAID THE CONCEPT MAY BE LEGALLY RELIED UPON BUT THAT NO ENTRAPMENT TOOK PLACE IN THIS CASE THE DEALER WAS PREDISPOSED TO SELL A LARGE AMOUNT THE COURT SAID NOTING THAT HE WAS FAMILIAR WITH DRUG LINGO AND HAD DRUGDEALING EQUIPMENT AND SKILLS WE DO NOT ATTEMPT TO DETERMINE IN THE ABSTRACT WHAT IS PERMISSIBLE AND IMPERMISSIBLE CONDUCT ON THE PART OF GOVERNMENT AGENTS THE COURT SAID WHEN A SUFFICIENTLY EGREGIOUS CASE ARISES THE SENTENCING COURT MAY DEAL WITH THE SITUATION BY EXCLUDING THE TAINTED TRANSACTION OR DEPARTING FROM THE SENTENCING GUIDELINES ANOTHER FEDERAL APPEALS COURT IN BOSTON RULED SIMILARLY LAST YEAR BUT AN APPEALS COURT IN ATLANTA REJECTED THE SENTENCINGENTRAPMENT CONCEPT JEFFREY PAULSEN AN ASSISTANT US ATTORNEY IN MINNEAPOLIS WHO PROSECUTED THE CASE SAID HE WAS SATISFIED WITH THE RULING BECAUSE THE LOWER COURT WAS REVERSED ON THE SPECIFICS OF THE CASE HE HAD ARGUED THAT THERE IS NO LEGAL BASIS FOR THE ENTRAPMENT THEORY AND THAT POLICE ARE UNLIKELY TO DELAY ARRESTS BECAUSE THEY WANT TO QUICKLY GET DEALERS OFF THE STREETS UPHOLDING THE ENTRAPMENT THEORY THE PROSECUTOR HAD SAID WOULD REWARD DEALERS WHO CLEVERLY REFUSE TO SELL NEW CUSTOMERS A LOT OF NARCOTICS MICHAEL MCGLENNON A MINNEAPOLIS ATTORNEY FOR THE DEALER SAID HE WAS CONSIDERING ASKING THE FULL APPEALS COURT FOR A REHEARING TO CLARIFY PART OF THE OPINION A VIRGINIA APPEALS COURT RULED THAT A TRAFFICCOURT JUDGE WAS WITHIN HIS RIGHTS TO SEND RICHMOND'S CHIEF PROSECUTOR TO JAIL FOR WRITING A HARSH LETTER ABOUT THE JUDGE'S PERFORMANCE PROSECUTORS RARELY ARE SANCTIONED FOR CRITICIZING COURT PROCEEDINGS LAWYERS SAY THE CASE RAISES IMPORTANT QUESTIONS ABOUT THE FREESPEECH RIGHTS OF LAWYERS AND THE SCOPE OF A JUDGE'S POWER TO PUNISH LAWYERS WHO SAY THINGS THAT MIGHT UNDERMINE A JUDGE'S AUTHORITY ACCORDING TO COURT PAPERS JUDGE JOHN P DRISCOLL BERATED A PROSECUTOR FROM THE OFFICE OF THE RICHMOND COMMONWEALTH'S ATTORNEY FOR ALLEGEDLY BEING LAZY AND ILLPREPARED DURING A PLEABARGAIN HEARING TWO YEARS AGO JOSEPH D MORRISSEY RICHMOND COMMONWEALTH'S ATTORNEY RESPONDED WITH A LETTER TO JUDGE DRISCOLL CHARGING THAT THE SCOLDING OF HIS PROSECUTOR HAD BEEN ENTIRELY UNCALLED FOR HE WARNED THAT IF THAT BEHAVIOR EVER EVER HAPPENS AGAIN I WILL NOT BE SO KIND AS TO MERELY DRAFT YOU A LETTER OF INDIGNATION MR MORRISSEY LATER SAID THE LETTER THREATENED ONLY TO SEEK SOME LEGITIMATE REDRESS SUCH AS FILING A COMPLAINT WITH THE JUDICIAL REVIEW BOARD BUT IN A RECENT UNANIMOUS RULING BY A THREEJUDGE PANEL FOR THE COURT OF APPEALS IN RICHMOND JUDGE NORMAN K MOON SAID THE LETTER WAS CALCULATED TO IMPAIR THE JUDGE'S USEFULNESS IN FUTURE CASES ROGER L GREGORY A PARTNER WITH THE RICHMOND LAW FIRM WILDER & GREGORY WHICH REPRESENTED MR MORRISSEY SAID THE RULING WAS UNCONSTITUTIONAL BECAUSE IT GIVES VERY LITTLE GUIDANCE TO WHAT IS ACCEPTABLE AND NOT ACCEPTABLE MR GREGORY SAID NO DECISION HAS BEEN MADE ABOUT WHETHER TO APPEAL A SPOKESMAN FOR THE STATE'S ATTORNEY GENERAL'S OFFICE WHICH REPRESENTED JUDGE DRISCOLL DECLINED TO COMMENT EXCEPT TO SAY THE CASE IS UNUSUAL RONALD L KUBY WHO DEFENDED NEW YORK ATTORNEY WILLIAM M KUNSTLER IN A SIMILAR CASE SAID MR MORRISSEY'S COMMENTS COME CLOSE TO THE LINE BETWEEN FREE SPEECH AND EXTORTION BUT THE RULING IS VIRTUALLY UNPRECEDENTED AND MOST LIKELY UNCONSTITUTIONAL ARTHUR S HAYES CONTRIBUTED TO THIS COLUMN 9304120018 930412 PIPER TO SELL ASSETS IN MOVE TO EMERGE FROM CHAPTER 11 VERO BEACH FLA PIPER AIRCRAFT CORP SAID IT SIGNED A LETTER OF INTENT TO SELL SUBSTANTIALLY ALL ITS ASSETS TO PILATUS AIRCRAFT LTD FOR 34 MILLION IN CASH AND ASSUMED OBLIGATIONS THE AIRPLANE MAKER WHICH HAS BEEN OPERATING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE SINCE JULY 1 1991 SAID THE SALE WOULD FACILITATE ITS EMERGENCE FROM BANKRUPTCY PROTECTION THE NEW COMPANY WOULD BE OWNED AND OPERATED BY PILATUS A SWISS AIRCRAFT COMPANY OWNED BY OERLIKONBUHRLE HOLDING LTD THAT HAS ANNUAL SALES OF ABOUT 180 MILLION ACCORDING TO A PIPER LAWYER A KEY ELEMENT OF THE TRANSACTION IS THAT CLOSELY HELD PIPER RETAIN ALL ITS STOCK AND THEREFORE ALL THE LIABILITY EXPOSURE THOSE INVOLVED IN LIABILITY LITIGATION CONCERNING PIPER AS WELL AS VENDORS COMPRISE MOST OF THE UNSECURED CREDITORS COMMITTEE LAWYERS FOR PIPER SAID THE COMMITTEE HAS NEITHER APPROVED NOR ASSENTED TO THE PROPOSED TRANSACTION PIPER INTENDS TO FILE A MOTION WITH THE US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF FLORIDA SEEKING APPROVAL OF THE SALE INCREASING LIABILITY EXPOSURE PLAYED A LARGE PART IN PIPER'S FILING FOR BANKRUPTCY PROTECTION WHICH A COMPANY LAWYER SAID WAS PROMPTED BY A 5 MILLION LIABILITY JUDGMENT AT THAT TIME THE COMPANY HAD LESS THAN 1000 IN CASH ON HAND AND 45 EMPLOYEES IT NOW EMPLOYS 350 AND HAS CASH ON HAND OF ABOUT 3 MILLION PIPER SAID IT RECORDED 7 MILLION IN OPERATING PROFITS ON SALES OF 47 MILLION IN THE LAST 12 MONTHS PIPER HAS PAID ABOUT 12 MILLION TO RETIRE DEBT OWED TO ITS PREBANKRUPTCY LENDER CONGRESS FINANCIAL CORP NEW YORK WHILE UNDER BANKRUPTCY PROTECTION PIPER HAS CONTINUED TO BUILD AND DELIVER AIRCRAFT 9304120016 930412 NASD FINES FIRM INDIVIDUALS IN CASES OF MANIPULATING STOCKS AND ACCOUNTS BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS EXPELLED NOWDEFUNCT DENVER PENNYSTOCK FIRM PACIFIC SOUTHERN SECURITIES INC AND FINED THE FIRM AND ITS TWO FORMER TOP OFFICERS 800000 FOR STOCK MANIPULATION SEPARATELY THE NASD WHICH OPERATES AND REGULATES THE OVERTHECOUNTER STOCK MARKET FINED A MINNEAPOLIS BROKER WILLIAM C MURPHY 100000 FOR ESTABLISHING BROKERAGE ACCOUNTS IN OTHER PEOPLE'S NAMES AMONG OTHER CHARGES THE NASD ALSO TOOK ACTION AGAINST HIS FIRM JOHN G KINNARD & CO ALSO OF MINNEAPOLIS FOR FAILING TO ADEQUATELY SUPERVISE HIM AND DISCIPLINED FIVE OTHER INDIVIDUALS FOR CHARGES RELATED TO THE CASE THE NASD SAID THAT PACIFIC SOUTHERN SECURITIES REAPED MORE THAN 600000 IN PROFITS IN USING MANIPULATIVE DECEPTIVE AND OTHER FRAUDULENT DEVICES FROM 1989 THROUGH 1991 IN CONNECTION WITH THE PURCHASE AND SALE OF SHARES OF VINTAGE CAPTIAL CORP A BLIND POOL WHICH THE FIRM TOOK PUBLIC AMONG OTHER CHARGES THE NASD SAID THE FIRM ARBITRARILY DETERMINED A RISE IN VINTAGE'S SHARES TO 10 CENTS APIECE FROM A PENNY AND DOMINATED AND CONTROLLED TRADING IN THE STOCK AFTER ITS INITIAL OFFERING IN A BLIND POOL INVESTORS HAND OVER THEIR MONEY WITHOUT KNOWING WHERE THE FUNDS WILL BE INVESTED GERALD M SCHECHTER ENGLEWOOD COLO THE FIRM'S PRESIDENT AND HEAD TRADER AND WILLIAM P SNOW SR ARVADA COL HEAD OF CORPORATE FINANCING WERE LABELLED THE MASTERMINDS OF THE SCHEME BY THE NASD THEY AND THE FIRM WERE FINED 800000 JOINTLY AND SEVERALLY MESSRS SCHECTER AND SNOW ALSO WERE BARRED FROM ASSOCIATING WITH ANY NASD MEMBER THE NASD ALSO SAID THAT EDGEL G GROVES ATLANTA OWNER OF PACIFIC SOUTHERN'S FRANCHISED BRANCH OFFICE IN ATLANTA WAS RESPONSIBLE FOR THE SALE OF A MAJORITY OF VINTAGE COMMON STOCK AND WARRANTS HE WAS FINED 150000 AND SUSPENDED FOR TWO YEARS PAUL D MELVEY FARGO ND WAS FINED 2500 AND SUSPENDED FOR FOUR YEARS FOR ASSISTING IN RELEASING MATERIALLY MISLEADING INFORMATION TO THE PUBLIC IN THE FIRM'S NEWSLETTERS THE CHARGES WERE SETTLED WITHOUT ANY ADMISSION OR DENIAL OF GUILT BY THE FIRM OR THE INDIVIDUALS NONE COULD BE REACHED FOR COMMENT IN THE SEPARATE CASE MR MURPHY WAS CHARGED WITH OPENING SEVERAL BROKERAGE ACCOUNTS BETWEEN 1985 AND 1989 IN OTHER PEOPLE'S NAMES BOTH AT KINNARD AND WITH OTHER MINNEAPOLIS BROKERDEALERS THE NASD SAID THAT MR MURPHY THEN ACTIVELY TRADED IN THE ACCOUNTS WITHOUT AUTHORITY FOR HIS PERSONAL GAIN FALSIFIED NEW ACCOUNT INFORMATION FORGED CUSTOMER SIGNATURES TO CONCEAL HIS CONTROL OF THE NOMINEE ACCOUNTS AND REFUSED TO COOPERATE WITH THE NASD IN ITS INVESTIGATION THE ASSOCIATION CHARGED WITHOUT ADMITTING OR DENYING GUILT MR MURPHY WAS FINED 100000 AND PERMANENTLY BARRED HE COULDN'T BE REACHED FOR COMMENT KINNARD AND TWO OF ITS OFFICERS ALSO WERE FINED 35000 JOINTLY AND SEVERALLY AND DISCIPLINED FOR FAILING TO ADEQUATELY SUPERVISE MR MURPHY AND REVIEW HIS MISCONDUCT ONCE IT WAS BROUGHT TO THEIR ATTENTION THE FIRM AND THE SUPERVISORS DIDN'T ADMIT OR DENY GUILT IN SETTLING THE ALLEGATIONS A KINNARD EXECUTIVE SAID THE FIRM FELT THE COMPANY AND ITS SUPERVISORS WERE FRAUDULENTLY MISLED BY MR MURPHY PRAISING THE SUPERVISORS HE SAID THE FIRM SETTLED THE CASE BECAUSE OF THE COSTS OF PROLONGED LITIGATION THE NASD ALSO ACCEPTED SETTLEMENT OFFERS RELATED TO THE CASE FROM THREE OTHER MEN ASSOCIATED WITH OTHER UNNAMED MINNEAPOLIS BROKERAGE FIRMS 9304120015 930412 MEDIA LIBERTY CANCELS OFFER TO ACQUIRE HOME SHOPPING BY JOHNNIE L ROBERTS AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL LIBERTY MEDIA CORP ABRUPTLY WITHDREW A 640 MILLIONPLUS OFFER TO BUY FULL CONTROL OF HOME SHOPPING NETWORK INC AMID AN ESCALATING FEDERAL CRIMINAL INVESTIGATION AND NUMEROUS PRIVATE LAWSUITS ALLEGING FINANCIAL IMPROPRIETIES BY HOME SHOPPING'S CHAIRMAN AND FORMER PRESIDENT THE WITHDRAWAL ANNOUNCED OVER THE WEEKEND RAISES SOME UNCERTAINTY ABOUT THE FUTURE CONTROL OF THE TELEVISION HOME SHOPPING INDUSTRY FOR NOW IT DASHES ANY PROSPECT OF A MERGER BETWEEN HOME SHOPPING BASED IN CLEARWATER FLA AND THE ONLY OTHER DOMINANT SERVICE QVC NETWORK INC BECAUSE LIBERTY ALSO OWNS A MAJOR STAKE IN QVC WALL STREET ANALYSTS HAD SPECULATED THAT LIBERTY WOULD EVENTUALLY MERGE THE TWO SERVICES EVEN THOUGH LIBERTY SAID IT HAD NO PLANS TO DO SO LIBERTY THE SPINOFF OF CABLETELEVISION GIANT TELECOMMUNICATIONS INC HAD PROPOSED A CASHANDSTOCK TRANSACTION TO BUY THE ROUGHLY 75 MILLION HOME SHOPPING SHARES IT DOESN'T ALREADY OWN LIBERTY ALREADY HAD VOTING CONTROL OF HOME SHOPPING HAVING ACQUIRED A SUPERVOTING CLASS OF HOME SHOPPING STOCK IN DECEMBER FROM CHAIRMAN ROY SPEER FOR 160 MILLION IN CASH AND LIBERTY STOCK BUT SHORTLY AFTER LIBERTY'S PROPOSAL TO THE REMAINING SHAREHOLDERS HOME SHOPPING WAS HIT BY ALLEGATIONS CONCERNING MR SPEER AND FORMER PRESIDENT LOWELL PAXSON AMONG THE ALLEGATIONS WAS THAT MESSRS SPEER AND PAXSON PAID A THIRD EXECUTIVE 12 MILLION IN HOME SHOPPING SHARES AFTER HE THREATENED TO EXPOSE THEIR ALLEGED SECRET INTERESTS IN SOME HOME SHOPPING SUPPLIERS LIBERTY CITED PUBLISHED REPORTS ABOUT THE GROWING CONTROVERSY IN ANNOUNCING THE WITHDRAWAL OF ITS OFFER LIBERTY ADDED THAT IT WILL CONTINUE TO EVALUATE VARIOUS OPTIONS WITH RESPECT TO ITS INVESTMENT IN HOME SHOPPING TOGETHER WITH COMCAST CORP AND RECENTLY NAMED QVC CHAIRMAN BARRY DILLER LIBERTY OWNS A CONTROLLING STAKE IN QVC BY SOME ESTIMATES COMBINING QVC AND HOME SHOPPING WOULD CREATE A 2 BILLIONAYEAR RETAILING POWERHOUSE AND RESULT IN ANNUAL COST SAVINGS OF AS MUCH AS 50 MILLION QVC HAS 44 MILLION SUBSCRIBERS WHILE HOME SHOPPING REACHES 275 MILLION LIBERTY WILL CONTINUE TO EFFECTIVELY CONTROL BOTH IT RECENTLY INSTALLED FORMER TURNER BROADCASTING SYSTEM INC EXECUTIVE GERALD F HOGAN AS HOME SHOPPING'S NEW PRESIDENT BUT ANY MORE AMBITIOUS PLANS SUCH AS LINKING THE TWO SERVICES REALIZING COST EFFICIENCIES OR USING THE ASSETS OF HOME SHOPPING TO LAUNCH OTHER ENTERTAINMENT SERVICES WILL BE MORE DIFFICULT THE ALLEGATIONS SURROUNDING THE COMPANY AND ITS EXECUTIVES FIRST SURFACED IN A DIVORCE SUIT INVOLVING HOME SHOPPING'S FORMER GENERAL COUNSEL FERNANDO DIFILIPPO IN THE CASE HIS FORMER WIFE ALLEGED THAT MESSRS SPEER AND PAXSON DIPPED INTO THEIR PERSONAL HOLDINGS IN 1990 TO PAY HER HUSBAND 12 MILLION IN HOME SHOPPING STOCK AFTER HE PREPARED A LAWSUIT ACCUSING THEM OF FINANCIAL MISDEEDS MR DIFILIPPO RESIGNED LATER IN 1990 AND NO SUIT WAS EVER FILED THE THREE MEN HAVE DENIED MRS DIFILLIPO'S ALLEGATIONS THE FORMER MRS DIFILLIPO BASED HER ALLEGATIONS IN PART AT LEAST ON CONFIDENTIAL BUSINESS DOCUMENTS BELONGING TO MR DIFILIPPO THAT SHE PUT INTO THE DIVORCE PROCEEDING IN MIAMI THE PAPERS HOWEVER WERE SEALED BY THE DIVORCE COURT SO THEIR CONTENTS HAVEN'T BEEN DISCLOSED LATE LAST WEEK THE COURT PREPARED TO HAND OVER THE DOCUMENTS WHICH REMAIN UNDER SEAL TO A FEDERAL GRAND JURY IN TAMPA FLA THAT IS INVESTIGATING THE ALLEGATIONS THE DECISION WAS A PARTIAL SETBACK FOR ATTORNEYS REPRESENTING HOME SHOPPING AND MR SPEER WHO HAD ASKED THE DIVORCE COURT LAST THURSDAY TO RETURN THE PAPERS TO THE COMPANY ACCORDING TO AN ATTORNEY INVOLVED IN THE CASE LIBERTY DISPATCHED A LAWYER TO MIAMI ON THURSDAY TO OBSERVE THE PROCEEDINGS AGENTS FOR THE FEDERAL BUREAU OF INVESTIGATION AND THE INTERNAL REVENUE SERVICE ALSO WERE AT THE SESSION MEANWHILE IN TAMPA THE GRAND JURY ALSO IS INVESTIGATING ADDITIONAL ALLEGATIONS LEVELED BY MR DIFILIPPO'S SUCCESSOR AS HOME SHOPPING'S GENERAL COUNSEL ALLEN P ALLWEISS PEOPLE CLOSE TO THE INVESTIGATION SAY AS REPORTED IN ADDITION TO ECHOING THE ACCUSATIONS MADE BY MRS DIFILIPPO MR ALLWEISS CHARGED IN A SEPARATE LAWSUIT IN FEDERAL COURT IN TAMPA THAT A LONGTIME CONSULTANT TO HOME SHOPPING FRANCIS SANTANGELO WAS A MEMBER OF THE GAMBINO ORGANIZED CRIME FAMILY MR ALLWEISS ALSO CHARGED THAT MR SANTANGELO ONCE COMMENTED ON HIS PERSONAL RELATIONSHIP TO IMPRISONED GAMBINO FAMILY BOSS JOHN GOTTI ACCORDING TO THE SUIT MR SANTANGELO RECOUNTED TO MR ALLWEISS AN EPISODE IN WHICH MR GOTTI PERSONALLY OFFERED TO TAKE CARE OF A PROBLEM MR SANTANGELO WAS HAVING WITH A FORMER BUSINESS PARTNER THE PROBLEM THE COMPLAINT ALLEGED WAS THAT THE UNDISCLOSED PARTNER HAD BEEN RESPONSIBLE FOR A 12 MILLION PERSONAL JUDGEMENT AGAINST MR SANTANGELO MR ALLWEISS ALSO ALLEGED THAT MR SPEER WITHOUT BOARD APPROVAL HAD AUTHORIZED HOME SHOPPING TO LEND MR SANTANGELO THE MONEY TO PAY OFF THE JUDGEMENT IN THE SUIT MR ALLWEISS ADDED THAT 1 MILLION OF THE LOAN WAS SUBSEQUENTLY WIRED INTO A LAWYER'S TRUST ACCOUNT BENEFITING MR SANTANGELO THE LAWYER MR ALLWEISS ALLEGED WAS A RELATIVE OF MR SANTANGELO WHO HAD REPRESENTED MEMBERS OF THE GAMBINO CRIME FAMILY IN THE PAST FURTHERMORE MR ALLWEISS ALLEGED IN THE SUIT THAT MR SANTANGELO ATTEMPTED TO CAUSE HOME SHOPPING TO BUY A MUSIC BUSINESS FROM A MAN WITH A FELONY DRUG CONVICTION THE SUIT ALLEGED THAT HOME SHOPPING PREVIOUSLY HAD BEEN IN AN UNPROFITABLE JOINT VENTURE WITH THE MUSIC COMPANY OWNER AND THAT THE PROPOSED TRANSACTION WAS WITHOUT BUSINESS MERIT MR SANTANGELO LAST WEEK STONGLY DENIED THE ALLEGATIONS OF HIS CONNECTION TO THE GAMBINO FAMILY HE COULDN'T BE REACHED YESTERDAY CONCERNING THE OTHER ACCUSATIONS MR SPEER HAS BEEN UNAVAILABLE TO COMMENT SINCE THE CONTROVERSAY BEGAN UNFOLDING SEVERAL WEEKS AGO AS REPORTED EARLIER MR ALLWEISS FILED THE LAWSUIT AFTER HE WAS FIRED IN FEBRUARY A DISMISSAL HE ALLEGED THAT WAS SPARKED BY HIS ATTEMPTS TO ALERT LIBERTY TO THE ALLEGED FINANCIAL MISDEEDS LIBERTY'S EFFORTS TO ACQUIRE HOME SHOPPING HAVE BEEN PLAGUED WITH PROBLEMS FROM THE START FOR EXAMPLE BEFORE APPROVING THE DEAL THE JUSTICE DEPARTMENT CLOSELY SCRUTINIZED LIBERTY'S PROPOSED ACQUISITION OF VOTING CONTROL OF HOME SHOPPING FOR POSSIBLE ANTITRUST VIOLATIONS THEN HOME SHOPPING SHAREHOLDERS SUED TO BLOCK LIBERTY'S PROPOSAL TO ACQUIRE THE REMAINDER OF THE COMPANY CALLING IT GROSSLY UNFAIR LIBERTY REVISED THE OFFER AND IT WAS THIS LATEST PROPOSAL THAT THE COMPANY WITHDREW YESTERDAY BEFORE THE WITHDRAWAL SHAREHOLDERS HAD ALREADY BEGUN TO WORRY THAT LIBERTY MIGHT DROP THE PROPOSAL MOREOVER SOME HAD BEGUN TO WONDER HOW MUCH DUE DILIGENCE LIBERTY CONDUCTED BEFORE ACQUIRING THE STAKE FROM MR SPEER OVER A WEEKEND IN DECEMBER IN AN INTERVIEW THEN MR SPEER SAID I TALKED TO LIBERTY LAST FRIDAY AT 2 PM WE SIGNED THE DEAL AT 1030 SATURDAY MORNING A LIBERTY SPOKESWOMAN SAID YESTERDAY THAT THE COMPANY HAD ADEQUATELY CONDUCTED THE DUEDILIGENCE REVIEW OF HOME SHOPPING'S FINANCES AND THAT IT WAS AWARE OF CERTAIN ALLEGATIONS OF FINANCIAL IMPROPRIETY 9304120014 930412 FOOD LION INC ADDS RICO CHARGES TO SUIT AGAINST CAPITAL CITIES GREENSBORO NC FOOD LION INC HAS ADDED RACKETEERING CHARGES TO A LAWSUIT THE COMPANY FILED LAST SEPTEMBER AGAINST A UNIT OF CAPITAL CITIES/ABC INC ATTORNEYS FOR THE SUPERMARKET CHAIN ARE AMENDING THE SUIT TO A CIVIL RICO ACTION UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT IF THE MOVE IN FEDERAL COURT HERE IS SUCCESSFUL ANY DAMAGES AWARDED THE COMPANY COULD BE TRIPLED FOOD LION UNDER ITS ORIGINAL ACTION IS SEEKING A MINIMUM OF 30 MILLION IN DAMAGES A COMPANY SPOKESMAN SAID IN NOVEMBER ABC'S PRIME TIME LIVE REPORTED THAT FOOD LION USED UNCLEAN AND DECEPTIVE PROCEDURES FOR HANDLING MEAT AND FISH WHICH THE COMPANY HAS DENIED SINCE THE REPORT FOOD LION'S EARNINGS AND STOCK PRICE HAVE FALLEN THE SALISBURY NC COMPANY ORIGINALLY CHARGED THAT PRIME TIME LIVE COMMITTED FRAUD BY HAVING A PRODUCER LIE TO GET HIRED AT TWO FOOD LION STORES ITS ATTORNEYS NOW CLAIM TO HAVE UNCOVERED A PATTERN OF FRAUDULENT BEHAVIOR BY ABC IN ITS HIDDENCAMERA INVESTIGATIONS AND HAVE ADDED THE NAMES OF THREE PRIME TIME LIVE PRODUCERS TO THE SUIT FOOD LION'S AMENDMENT CLAIMS THAT ABC'S PRODUCERS ILLEGALLY USED TELEPHONES AND THE MAIL TO CREATE FALSE IDENTITIES AND REFERENCES SO THEY COULD GET JOBS AT FOOD LION AND VIDEOTAPE EMPLOYEES WORKING IN NONPUBLIC AREAS THE LAWSUIT SAYS ABC AND ITS PARENT COMPANIES ABC HOLDING CO AND AMERICAN BROADCASTING COMPANIES INC VIOLATED THE RICO ACT BY REINVESTING INCOME FROM THE ADVERTISING REVENUE GENERATED BY THE PRIME TIME LIVE REPORT ABC NEWS SAID IN A STATEMENT THAT THE NEW CHARGES WERE OUTRAGEOUS AND CHARACTERIZED THE LAWSUIT AS A LEGALLY BASELESS COMPLAINT 9304120013 930412 PRUDENTIAL SEEKS NEW WAY TO SETTLE PARTNERSHIP SUIT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC IS LIKELY TO WITHDRAW A 100 MILLION SETTLEMENT PROPOSAL IN A CLASSACTION CASE BROUGHT BY 130000 INVESTORS IN ENERGY PARTNERSHIPS THAT SOURED PEOPLE FAMILIAR WITH THE MATTER SAID PRUDENTIAL SECURITIES THE NATION'S FOURTHLARGEST BROKERAGE FIRM NOW APPEARS TO WANT TO FOCUS ON ARRANGING A SALE OF THE PARTNERSHIP ASSETS BEFORE SETTLING THE CASE IF SUCCESSFUL SUCH A SALE COULD MEAN MORE MONEY WOULD ULTIMATELY BE AVAILABLE TO DOLE OUT TO THE INVESTORS LAWYERS IN THE CASE SAID THE SETTLEMENT WILL NOW REVOLVE AROUND THE SALE OF PARTNERSHIP ASSETS SAID PERRY J SHWACHMAN OF CIN SHWACHMAN & WAGNER A CHICAGO LAW FIRM THAT REPRESENTS SOME INVESTORS WHO OBJECTED TO PRUDENTIAL'S SETTLEMENT PROPOSAL WE DON'T CARE IF THE MONEY COMES OUT OF ASSET SALES OR OUT OF PRUDENTIAL'S POCKET MR SHWACHMAN SAID OUR GOAL IS TO GET MONEY BACK FOR THE LIMITED PARTNERS EARLIER THIS MONTH THE SECURITIES FIRM ACTING AS GENERAL PARTNER SPURNED AN OFFER FOR 31 OF THE 35 ENERGY PARTNERSHIPS FROM A TULSA OKLA OIL MAN AND SAID IT WOULD SEEK BETTER OFFERS MEANTIME ANOTHER BIDDER IS EXPECTED TO SURFACE EARLY THIS WEEK AMONG THE LIKELY CANDIDATES PARKER & PARSLEY PETROLEUM CO A BIG MIDLAND TEXAS INDEPENDENT OIL AND GAS COMPANY THE PEOPLE FAMILIAR WITH THE MATTER SAID PRUDENTIAL SECURITIES A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA DECLINED TO COMMENT HERBERT WILLIAMSON PARKER & PARSLEY'S VICE CHAIRMAN COULDN'T BE REACHED OVER THE WEEKEND IN FEBRUARY A FEDERAL JUDGE IN NEW ORLEANS SAID HE HAD SERIOUS RESERVATIONS ABOUT THE FAIRNESS OF PRUDENTIAL'S 100 MILLION SETTLEMENT PROPOSAL WHICH INCLUDED ABOUT 37 MILLION IN CASH PAYMENTS AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM THE JUDGE SAID MORE INFORMATION WAS NECESSARY BEFORE HE COULD RULE ON THE PROPOSAL THE BROKERAGE FIRM IS NOW EXPECTED TO SEND A LETTER TO THE JUDGE INFORMING HIM OF ITS DECISION TO YANK THE SETTLEMENT PROPOSAL WHEN THE PARTNERSHIPS WERE SOLD PRUDENTIAL PROMISED RETURNS OF 12 TO 15 A YEAR BUT AS ENERGY PRICES PLUNGED IN THE MID1980S PAYOUTS WERE SLASHED THE INVESTORS HAVE SO FAR RECEIVED DISTRIBUTIONS OF ONLY 636 MILLION OR ABOUT 43 OF THEIR ORIGINAL 14 BILLION INVESTMENT ACCORDING TO THE BROKERAGE FIRM MEANWHILE INVESTORS HAVEN'T BEEN ABLE TO SELL THEIR STAKES BECAUSE OF AN ILLIQUID MARKET BUT PRUDENTIAL EXECUTIVES SAY THE PARTNERSHIP PROPERTIES HAVE A CURRENT VALUE OF BETWEEN 175 MILLION AND 450 MILLION OR MORE IN THE 1980S PRUDENTIAL SECURITIES THEN KNOWN AS PRUDENTIALBACHE SECURITIES INC WAS ONE OF WALL STREET'S BIGGEST SELLERS OF LIMITED PARTNERSHIPS MANY OF WHICH HAVE SOURED AND TRIGGERED INVESTOR LAWSUITS MANY OF THE INVESTMENTS WERE HURT BY TAXLAW CHANGES AND SLUMPS IN HE ENERGY AND REAL ESTATE MARKETS BUT WHEN THE JUDGE IN THE ENERGYPARTNERSHIP CLASSACTION CASE MARCEL LIVAUDAIS JR RECENTLY LIFTED A CONFIDENTIALITY ORDER IT UNVEILED THOUSANDS OF PAGES OF INTERNAL DOCUMENTS THAT SUGGEST PRUDENTIAL KNEW IN THE MID1980S THERE WERE PROBLEMS IN PAYING OUT DISTRIBUTIONS TO INVESTORS FROM THE ENERGY PARTNERSHIPS PRUDENTIAL KEPT MARKETING NEW PARTNERSHIPS UNTIL 1989 SOME OF THE INTERNAL DOCUMENTS SHOWED THAT PRUDENTIAL INFLATED PAYOUTS ON SOME OF ITS ENERGY PARTNERSHIPS BY DISTRIBUTING BORROWED FUNDS TO INVESTORS PRUDENTIAL THIS MONTH SAID IT HIRED MERRILL LYNCH & CO TO ADVISE IT IN ASSESSING THE VALUE OF THE ENERGY PARTNERSHIPS PRUDENTIAL SAID IT WILL INVITE THIRD PARTIES TO REVIEW INTERNAL PARTNERSHIP INFORMATION AND TO MAKE PROPOSALS WHICH COULD PROVIDE SUPERIOR VALUE FOR THE LIMITED PARTNERS PRUDENTIAL CALLED THE RECENT OFFER FOR THE PARTNERSHIPS BY OIL MAN GEORGE B KAISER INADEQUATE AND RECOMMENDED THAT THE LIMITED PARTNERS NOT TENDER THEIR INTERESTS TO HIM MR KAISER'S OFFER FOR 31 OF THE 35 LIMITED PARTNERSHIPS WAS SAID TO BE VALUED AT ABOUT 175 MILLION THE OFFER ALSO WAS REJECTED BY GRAHAM ROYALTY LTD OF COVINGTON LA WHICH ORGANIZED THE PARTNERSHIPS WITH PRUDENTIAL IN A SECURITIES AND EXCHANGE COMMISSION FILING RESPONDING TO THE KAISER OFFER PRUDENTIAL SAID SEVERAL PARTIES HAVE EXPRESSED INTEREST IN THE PARTNERSHIPS AND THAT ONE HAS SUGGESTED A PRELIMINARY LEVEL OF INTEREST THAT EXCEEDS THE PURCHASE PRICE PROPOSED IN THE KAISER OFFER PRUDENTIAL EXECUTIVES ARE HOPEFUL THAT A SALE OF THE PARTNERSHIP ASSETS COULD OCCUR IN THE NEXT FEW WEEKS BUT SOME INVESTMENT BANKERS CAUTION THAT SELLING THE PARTNERSHIPS WON'T BE EASY IT'S ENORMOUSLY COMPLICATED TO BUY PARTNERSHIPS AT A PRICE PALATABLE TO THE LIMITED PARTNERS SAID A SENIOR WALL STREET INVESTMENT BANKER ANY WHOLESALE PARTNERSHIP SALE WOULD REQUIRE AMONG OTHER THINGS THE APPROVAL OF EACH PARTNERSHIP INTEREST PRUDENTIAL SECURITIES INC'S ENERGYLIMITED PARTNERSHIP PROPERTIES HAVE A CURRENT VALUE OF 175 MILLION TO 450 MILLION OR MORE ACCORDING TO SOME WALL STREET TRADERS AN ARTICLE YESTERDAY INCORRECTLY ATTRIBUTED THE ESTIMATE OF THE PARTNERSHIPS' CURRENT VALUE TO PRUDENTIAL SECURITIES EXECUTIVES 9304120012 930412 INFORMATION AGE LAPTOP MANAGERS HIT TURBULENCE IN SKIES BY WILLIAM M BULKELEY THEY STYLE THEMSELVES THE ROAD WARRIORS THE COMPUTERLUGGING EXECUTIVES WHO SPEND HALF THEIR TIME AWAY FROM HOME FOR A GROWING NUMBER AIRLINE CABINS ARE LITERALLY THEIR OFFICES BUT THEIR SKYHIGH PRODUCTIVITY MAY BE THREATENED BY AIRLINES' FEARS THAT LAPTOPS INTERFERE WITH PLANES' NAVIGATION SYSTEMS LAST WEEK THE INTERNATIONAL AIR TRANSPORT ASSOCIATION URGED ITS AIRLINE MEMBERS TO FORBID PASSENGERS FROM USING ELECTRONIC DEVICES DURING TAKEOFFS AND LANDINGS SOME US CARRIERS WOULD LIKE TO SEE A TOTAL BAN THE FOLKS WHO HAVE TURNED AIRLINE CABINS INTO OFFICE ANNEXES WON'T TURN OFF THEIR NOTEBOOKS IF THEY CAN HELP IT THEY COUNT ON PLANE TIME TO GET THEIR WORK DONE THERE ARE CERTAIN PROJECTS THAT I'LL SAVE UP IF I KNOW I'M GOING ON A THREEHOUR PLANE TRIP SAYS WILLIAM COFFEY DIRECTOR OF COMPENSATION AND BENEFITS FOR ABEX INC HAMPTON NH A MAKER OF AIRPLANELANDING GEAR AARON GOLDBERG A MASSACHUSETTS MARKET RESEARCHER WHO BECAME HEAD OF A CALIFORNIA COMPANY SAYS HE NEEDS HIS LAPTOP TO MAINTAIN A BICOASTAL LIFESTYLE I HAVE THE JOB OF MY DREAMS IN THE PLACE OF MY NIGHTMARES I LIVE IN MY LAPTOP AIRLINE TRIPS USED TO BE A CHANCE TO CATCH UP ON TRADE MAGAZINES OR SKIM A BESTSELLER BUT NOW THAT NOTEBOOK COMPUTERS HAVE BECOME STANDARD EQUIPMENT THERE'S STRONG PRESSURE TO PRODUCE WORK EVEN AT 30000 FEET LET VACATIONERS READ DICK FRANCIS PEOPLE ON BUSINESS TRIPS READ COMPUTER SCREENS I USED TO READ NOVELS ON PLANE TRIPS BUT NOW I FEEL GUILTY ABOUT IT SAYS MARY DIELI WHO HEADS THE USABILITYTESTING LABORATORY AT MICROSOFT CORP IN REDMOND WASH BEFORE SHE HEADS OUT ON A TRIP NOWADAYS MS DIELI TRANSFERS ALL HER ELECTRONIC MAIL TO HER NOTEBOOK COMPUTER AND SPENDS FLIGHT TIME ANSWERING IT THESE GROWING RANKS OF COMPUTER ROAD WARRIORS FILL THE AIRLINES WITH WORRIES SOME PILOTS HAVE FOUND THAT PROBLEMS THEY WERE HAVING WITH INSTRUMENT READINGS DISAPPEARED WHEN THEY ORDERED ALL PORTABLE DEVICES TURNED OFF CONCERNED ABOUT TAKEOFFS AND LANDINGS NORTHWEST AIRLINES RECENTLY BANNED THE USE OF PCS TAPE PLAYERS AND ELECTRONIC GAMES BELOW 10000 FEET AND TOTALLY BANNED COMPACT DISK PLAYERS CELLULAR PHONES ARE BANNED INFLIGHT BY THE FEDERAL COMMUNICATIONS COMMISSION BECAUSE THEY COULD OVERWHELM GROUNDBASED CELLULAR SYSTEMS MOST AIRLINES ARE RELUCTANT TO TAKE ACTION INDIVIDUALLY THOUGH FOR FEAR OF ALIENATING THEIR BREADANDBUTTER BUSINESS PASSENGERS THE MOST EAGER COMPUTER USERS THEIR US TRADE GROUP TRIED TO GET THE FEDERAL AVIATION AGENCY TO INSTITUTE A UNIVERSAL BAN EARLIER THIS YEAR BUT THE FAA REFUSED SAYING IT DOESN'T HAVE EVIDENCE OF PROBLEMS AND LEFT THE AIRLINES FREE TO BAN THEM ON THEIR OWN THE FAA SAYS THAT SINCE 1986 IT HAS RECEIVED 24 PILOT COMPLAINTS ABOUT PASSENGERS' DEVICES APPARENTLY AFFECTING AVIONICS SYSTEMS A 1988 STUDY FOR THE FAA CONCLUDED THAT CHANCES OF INTERFERENCE WERE TOO REMOTE TO WORRY ABOUT SINCE THEN HOWEVER DEVICES HAVE PROLIFERATED AVIONICS HAVE BECOME MORE SENSITIVE AND MORE AIRPLANE PARTS ARE LIGHTWEIGHT COMPOSITES THAT DON'T BLOCK INTERFERENCE AS WELL AS METAL A NEW REPORT ON THE PROBLEM IS SET TO COME OUT NEXT YEAR NOT SURPRISINGLY AIRBORNE COMPUTER USERS AREN'T CONVINCED THAT THEY POSE ANY DANGER BUT A BAN WOULD CERTAINLY ENDANGER THEIR LIFESTYLE WITHOUT HIS NOTEBOOK COMPUTER MR GOLDBERG SAYS HE COULDN'T MAINTAIN HIS BICOASTAL SETUP MR GOLDBERG RECENTLY TOOK A JOB AS CHIEF EXECUTIVE OFFICER OF INFOCORP A SANTA CLARA CALIF MARKET RESEARCH UNIT OF ZIFF COMMUNICATIONS CORP BUT MOVING FROM MASSACHUSETTS WOULD HAVE REQUIRED SELLING HIS WIFE'S APPALOOSA HORSE BUSINESS SO MR GOLDBERG HAS DEVISED A SCHEDULE IN WHICH PLANE TIME IS A VITAL PART OF HIS WORKWEEK ON A RECENT MONDAY HE BOARDED A FLIGHT FOR CHICAGO OUT OF PROVIDENCE RI AT 715 AM EST BY THE TIME HE ARRIVED IN CALIFORNIA NINE HOURS LATER HE HAD ALREADY SPENT 5 1/2 HOURS WORKING ON THE COMPUTER OR ON THE PLANE'S AIRFONE MAKING BUSINESS CALLS HE HAD DRAFTED A COLUMN FOR PC WEEK MAGAZINE AND REVIEWED A RAFT OF HIS EMPLOYEES' RESEARCH THAT HE HAD LOADED IN THE COMPUTER AT THE END OF THE PREVIOUS WEEK DRAINING TWO BATTERIES IN THE PROCESS THEN HE HAD A SIXHOUR DAY OF MEETINGS AHEAD IN CALIFORNIA WHEN MR GOLDBERG RETURNED TO MASSACHUSETTS ON A RECENT FRIDAY HE LOADED UP ALL HIS EMAIL LEFT SAN JOSE AIRPORT AT 1 PM PST AND SPENT THE FIRST HOUR ON THE PHONE TO THE EAST COAST THEN HE RESPONDED TO THE EMAIL ON HIS COMPUTER UNTIL HE GOT TO CHICAGO HE SENT OFF HIS EMAIL THERE AND MADE PHONE CALLS TO THE WEST COAST OFFICES WHICH WERE STILL OPEN THE FINAL LEG OF THE FLIGHT TO BOSTON WAS GOOD UNINTERRUPTED COMPUTER TIME I SAVE MY TRICKIEST MANAGEMENT DILEMMA FOR THEN WRITE THE HEAVY MEMO BECAUSE I'VE LOST THE WEST COAST PHONE WINDOW IT'S A GREAT THINK TIME HE SAYS LAPTOP USERS SAY AIRPLANES HAVE MANY ADVANTAGES AS OFFICES I'VE PROBABLY WRITTEN SOME OF MY BEST RESEARCH AT 35000 FEET SAYS DAVID READERMAN A SECURITIES ANALYST WITH SHEARSON LEHMAN BROTHERS INC THERE ARE NO PHONE INTERRUPTIONS HE USED TO READ ON PLANES HE SAYS BUT SINCE COMPUTERIZING I'VE BEEN ABLE TO DO WORK THAT RESULTS IN THE OUTPUT OF A PRODUCT WHEN I LAND LAPTOP USERS CONCEDE THERE ARE HAZARDS PRIVACY IS ONE KIM PEYSER PRESIDENT OF REACH SOFTWARE CORP SUNNYVALE CALIF SAYS HE'S ALWAYS AMAZED THAT PEOPLE DO CONFIDENTIAL WORK ON AIRPLANES I SAW ONE GUY WRITING A GUY A JOB OFFER GOOD OFFER TOO HE SAYS IN FIRST CLASS THERE'S AMPLE ROOM BUT FOR FLYERS STUCK IN TOURIST THE ONLY HOPE IS AN EMPTY MIDDLE SEAT MOST NOTEBOOK COMPUTER USERS RECOMMEND AISLE SEATS BUT THAT HAS ITS HAZARDS TOO LIKE A SEATMATE GETTING UP REPEATEDLY BUT THE HASSLES ARE WORTHWHILE JAMES GHIRARDI DIRECTOR OF FINANCIAL REPORTING FOR FISHER SCIENTIFIC INTERNATIONAL INC HAMPTON NH SAYS HE HAS BEEN A HEAVY NOTEBOOK USER SINCE HE STARTED TRAVELING 60000 MILES ANNUALLY LAST YEAR IF YOU DON'T WORK ON THE COMPUTER IN THE PLANES WHEN YOU GET HOME YOU'LL BE WORKING NIGHTS AND WEEKENDS TO CATCH UP I FIGURE I SPEND ENOUGH TIME AWAY FROM MY FAMILY AS IT IS 9304120011 930412 POLITICS & POLICY FINANCIAL INCENTIVES LOWER DROPOUT RATE FOR WELFARE MOTHERS PROMISE IS SEEN IN OHIO PLAN THAT LINKS SIZE OF GRANTS TO HIGH SCHOOL ATTENDANCE BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN OHIO PROGRAM THAT USES FINANCIAL INCENTIVES TO ENCOURAGE TEENAGE WELFARE MOTHERS TO FINISH HIGH SCHOOL IS SHOWING PROMISING RESULTS ACCORDING TO A NEW STUDY UNDER THE PROGRAM NAMED LEAP FOR LEARNING EARNING AND PARENTING PARTICIPANTS' WELFARE GRANTS INCREASE WHEN THEY ATTEND SCHOOL REGULARLY AND DECREASE WHEN THEY DROP OUT OR HAVE FREQUENT ABSENCES THE NEW STUDY BY THE MANPOWER DEMONSTRATION RESEARCH CORP A NEW YORKBASED NONPROFIT ORGANIZATION FOUND THAT LEAP HAS REDUCED THE DROPOUT RATE AMONG TEEN WELFARE RECIPIENTS ALREADY ATTENDING SCHOOL AND HAS ENCOURAGED DROPOUTS TO RETURN TO SCHOOL OR TAKE COURSES TOWARD A HIGH SCHOOL EQUIVALENCY TEST EARLY EVIDENCE IN THE STUDY BASED ON DATA INVOLVING MORE THAN 7000 TEENAGE PARENTS ALSO INDICATES THAT THE PROGRAM HAS INCREASED HIGH SCHOOL GRADUATION RATES WHAT WE LEARNED WAS THAT THE PROGRAM DID CHANGE THE BEHAVIOR OF YOUNG WOMEN SAID JUDITH GUERON PRESIDENT OF MDRC AN ORGANIZATION FOUNDED IN 1974 BY THE FORD FOUNDATION AND A GROUP OF FEDERAL AGENCIES TO STUDY AND DESIGN PROGRAMS FOR THE DISADVANTAGED WE ARE SEEING EVIDENCE THAT THIS PROGRAM REALLY MAKES A DIFFERENCE SHE SAID THE IMPACTS ARE QUITE SUBSTANTIAL THE STUDY FOUND FOR EXAMPLE THAT 61 OF TEENAGERS IN THE PROGRAM CONTINUED IN HIGH SCHOOL COMPARED WITH 51 OF THOSE IN A RANDOMLY SELECTED CONTROL GROUP AND 47 OF TEEN DROPOUTS ENROLLED IN LEAP RETURNED TO SCHOOL AT SOME POINT DURING THE YEAR AFTER ENROLLING COMPARED WITH 33 OF THE CONTROL GROUP TEENS IN THE PROGRAM WHO ATTEND HIGH SCHOOL GET A BONUS OF 62 IN THEIR WELFARE GRANT FOR EACH MONTH DURING WHICH THEY HAVE TWO OR FEWER UNEXCUSED ABSENCES PARTICIPANTS WHO HAVE MORE UNEXCUSED ABSENCES OR WHO FAIL TO VERIFY THAT THEY ARE ENROLLED IN SCHOOL ARE PENALIZED BY HAVING THEIR GRANT REDUCED BY 62 A MONTH UNTIL THEY COMPLY THUS A TEENAGE MOTHER WITH ONE CHILD WHO WOULD OTHERWISE BE ELIGIBLE FOR A MONTHLY GRANT OF 274 COULD RECEIVE AS MUCH AS 336 OR AS LITTLE AS 212 DEPENDING ON HER PERFORMANCE LEAP WHICH BEGAN IN 1989 UNDER A WAIVER OF FEDERAL RULES GRANTED BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES IS GETTING A CLOSE LOOK BY SEVERAL OTHER STATES ACCORDING TO MDRC OFFICIALS 9304120010 930412 FOREIGN EXCHANGE PLAYERS DOUBT JAPAN'S ECONOMIC PLAN EXPECTED THIS WEEK WILL STIMULATE YEN BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK CURRENCY PLAYERS DOUBT THAT THE NEW JAPANESE ECONOMIC STIMULUS PACKAGE EXPECTED TO BE UNVEILED THIS WEEK WILL GIVE THE YEN ANOTHER BOOST INDEED THE YEN COULD SOFTEN AGAINST THE DOLLAR THIS WEEK ANALYSTS SAY AS DEALERS TAKE PROFITS ON GAINS THAT HAVE DRIVEN THE JAPANESE CURRENCY TO ONE RECORD HIGH AFTER ANOTHER IN THE PAST SEVEN WEEKS THERE'S BEEN AN AWFUL LOT OF ANTICIPATION OVER THE PACKAGE AND A LOT OF SPECULATIVE BUYING IN FRONT OF IT SAYS MICHAEL MALPEDE SENIOR CURRENCY ANALYST AT REFCO INC IN CHICAGO HE SAYS THE YEN IS SETTING UP FOR A SIGNIFICANT BREAK WHICH COULD BE TRIGGERED IF MARKET PLAYERS DRIVE THE DOLLAR TO 11250 YEN LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 11310 YEN DOWN FROM 11375 YEN AT THE END OF THE PREVIOUS WEEK THE DOLLAR'S POST WORLD WAR II LOW SET THURSDAY IS 11290 YEN ABOUT MIDDAY IN TOKYO THE DOLLAR WAS TRADING AT 15995 MARKS AND AT 11295 YEN THE JAPANESE STIMULUS PACKAGE WILL BE AIMED AT PUMPING UP THE COUNTRY'S ECONOMY WITH TAX CUTS AND INFRASTRUCTURE SPENDING BUT THE PACKAGE'S DETAILS AREN'T YET KNOWN AND ANALYSTS DISAGREE ABOUT ITS LIKELY EFFECTIVENESS LAST YEAR'S PACKAGE HAS BEEN CRITICIZED FOR EXAGGERATING THE AMOUNT OF NEW MONEY INJECTED INTO THE ECONOMY THE NEW PACKAGE COULD ALSO PROVE DISAPPOINTING IF THE SPENDING INCREASES ULTIMATELY APPROVED ARE SMALLER THAN EXPECTED ANALYSTS SAY MARKET PLAYERS ARE LOOKING FOR A PACKAGE OF ABOUT 12 TRILLION YEN OR MORE THAN 100 BILLION I'M VERY SKEPTICAL MYSELF AT THIS STAGE THAT THE PACKAGE IS MORE THAN WINDOWDRESSING SAYS ERIC NICKERSON FOREIGN EXCHANGE ADVISER AT BANK OF AMERICA AND THE YEN'S STRENGTH WILL ITSELF SOFTEN THE IMPACT OF THE PACKAGE SAYS RICHARD TRAINER CHIEF ECONOMIST AT THE BANK OF TOKYO IN NEW YORK THE YEN AT THESE LEVELS 114 TO 115 YEN TO THE DOLLAR IS SO HIGH THAT JAPANESE EXPORTERS ARE FINDING IT DIFFICULT TO SELL THEIR WARES HE SAYS IT'S ONE OF THE SIGNIFICANT NET DRAGS ON THE RECOVERY PROFITTAKING IN JAPANESE STOCKS MIGHT ALSO HURT THE YEN BRIEFLY ANALYSTS SAY THE NIKKEI STOCK INDEX ENDED FRIDAY AT 1989218 DOWN 7509 FROM THURSDAY BUT UP FROM 1859145 AT THE END OF JAPAN'S FISCAL YEAR ON MARCH 31 THE MARKETS WILL SAY NOW LET'S WAIT FOR ACTUAL IMPROVEMENT IN THE CORPORATE STRUCTURE IN JAPAN SAYS MR TRAINER CURRENCY PLAYERS MAY ALSO BE RELUCTANT TO BUY YEN AGGRESSIVELY AHEAD OF FRIDAY'S MEETING BETWEEN PRESIDENT CLINTON AND JAPANESE PRIME MINISTER KIICHI MIYAZAWA ESPECIALLY WHILE JAPANESE OFFICIALS ARE CALLING FOR MEETINGS THIS WEEK AMONG THE GROUP OF SEVEN FINANCE MINISTERS TO DISCUSS THE YEN'S RISE TRADERS HAVE BEEN UNFAZED BY JAPANESE OFFICIALS' EXPRESSIONS OF DISMAY OVER THE YEN'S GAINS OR BY REPORTED INTERVENTION BY THE BANK OF JAPAN BUT THEY MIGHT BE A BIT MORE CAUTIOUS THIS WEEK SAYS MR NICKERSON OF BANK OF AMERICA I DON'T THINK THE MARKET THINKS THE MEETINGS ARE GOING TO HAVE ANY IMPACT HE SAYS BUT THEY WON'T GET THEMSELVES WAY OUT ON A LIMB TO PROVE THE POINT TAKING A BIT LONGER VIEW HOWEVER ANALYSTS EXPECT YENBUYING TO RESUME AFTER THE JAPANESE CURRENCY GIVES BACK SOME GROUND TAX CUTS IN THE PACKAGE SHOULD GIVE CONSUMER SPENDING A QUICK LIFT SAYS MR TRAINER OF BANK OF TOKYO THAT WOULD SUPPORT EQUITY PRICES AND THE YEN THE EQUITY MARKETS ARE PROBABLY SAYING STIMULATION IS NEEDED IT'S NEEDED NOW AND THAT'S WHAT'S GOING TO GET JAPANESE CORPORATIONS OUT OF THEIR DIFFICULTIES AND BACK ON THE ROAD TOWARD STABILITY AND GROWTH MR TRAINER SAYS THE NIKKEI SHOULD GO HIGHER WHEN THEY SEE EFFECTS OF THE PACKAGE EVEN ANALYSTS WHO ARE PESSIMISTIC ABOUT JAPAN'S ECONOMIC OUTLOOK EXPECT THE YEN TO REMAIN FIRM OVER THE NEAR TERM JAPANESE STOCK AND CURRENCY APPRECIATION HAS TAKEN ON MOMENTUM THAT WON'T BE STOPPED EASILY THEY SAY THE FUNDAMENTALS ARE STILL PRETTY FRIGHTENING SAYS WILLIAM O'GRADY FUTURES ANALYST AT AG EDWARDS INC IN ST LOUIS CITING JAPAN'S UNRESOLVED BANKING CRISIS AND INFLATION OF STOCK PRICES BY GOVERNMENT BUYING BUT OF THE YEN HE SAYS THE TREND IS STILL UP 9304120009 930412 INTERNATIONAL CENTRAL BANK TO AID RUSSIA ON INFLATION BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW A SENIOR RUSSIAN OFFICIAL SAID THE CENTRAL BANK IS STARTING TO COOPERATE MORE CLOSELY WITH THE GOVERNMENT IN THE BATTLE TO KEEP HYPERINFLATION AT BAY VICE PREMIER BORIS FYODOROV RUSSIA'S TOP ECONOMIC STRATEGIST SAID THAT THREE CENTRAL BANK VICE CHAIRMEN AGREED TO A GOVERNMENT PLAN AIMED AT CURTAILING THE GROWTH OF BANK CREDITS THIS YEAR HE ALSO SAID THE CENTRAL BANK PLANS TO RAISE INTEREST RATES AGAIN SOON MR FYODOROV WHO DOUBLES AS FINANCE MINISTER DUBBED THE BANK OFFICIALS' AGREEMENT WITH THE GOVERNMENT A HISTORIC EVENT AND SAID COLLABORATION WITH THE CENTRAL BANK IS GAINING MOMENTUM IT WASN'T IMMEDIATELY CLEAR HOWEVER WHETHER THE BANK'S CHAIRMAN VIKTOR GERASHCHENKO ALSO APPROVES THE PLAN AS RECENTLY AS LAST MONTH MR FYODOROV WAS CALLING PUBLICLY FOR MR GERASHCHENKO'S RESIGNATION BLAMING HIS LOOSE CREDIT POLICIES FOR FUELING DANGEROUS LEVELS OF INFLATION CENTRAL BANK OFFICIALS WEREN'T AVAILABLE FOR COMMENT THE GOVERNMENT AND THE BANK HAVE BEEN AT ODDS EVER SINCE RUSSIA BEGAN ITS RADICAL ECONOMIC REFORM PROGRAM IN JANUARY 1992 UNTIL RECENTLY THE BANK HAS ANSWERED TO PARLIAMENT WHOSE LEADERS PREFER A MORE GRADUAL ECONOMIC REFORM PROCESS THAN THAT CHAMPIONED BY RUSSIAN PRESIDENT BORIS YELTSIN AND TOP ADVISERS SUCH AS MR FYODOROV LAST MONTH PARLIAMENT AGREED TO SHARE CONTROL OVER THE BANK WITH THE CABINET CENTRAL BANK OFFICIALS HAVE DEFLECTED GOVERNMENT CRITICISM OF THEIR POLICIES IN THE PAST CLAIMING THAT CREDIT EMISSION RATES HAVE LITTLE EFFECT ON INFLATION RATHER THEY ARGUE THE GOVERNMENT'S LIFTING OF PRICE CONTROLS AND THE CONTINUING POWER OF RUSSIA'S MONOPOLY PRODUCERS HAVE SENT PRICES SOARING IN AN APPEARANCE YESTERDAY ON NBCTV'S MEET THE PRESS US TREASURY SECRETARY LLOYD BENTSEN SAID HE WAS ENCOURAGED ABOUT THE CENTRAL BANK'S COMMITMENT TO CURTAIL INFLATION HE ADDED THAT RUSSIA'S LACK OF CONTROL OF THE CENTRAL BANK WAS ONE REASON MOSCOW IN THE PAST HADN'T RECEIVED ALL THE AID IT HAD BEEN PROMISED BY THE WEST EVEN BEFORE THE APPARENT AGREEMENT THERE WERE SIGNS THAT INFLATION MAY BE COMING UNDER CONTROL IN MARCH INFLATION ROSE 17 FROM THE PREVIOUS MONTH THAT WAS AN IMPROVEMENT FROM A 28 JUMP IN JANUARY AND A 25 INCREASE IN FEBRUARY HYPERINFLATION WHICH CAN TRIGGER PANIC BUYING AND SOCIAL UNREST IS USUALLY DEFINED AS AN INFLATION RISE OF MORE THAN 50 A MONTH IN DETAILING THE AGREEMENT MR FYODOROV SAID THE GOVERNMENT'S CREDIT POLICY COMMISSION DECIDED FRIDAY TO LIMIT THE GROWTH OF CREDITS ISSUED BY THE CENTRAL BANK IN THE SECOND QUARTER TO 30 MORE THAN THE FIRSTQUARTER LEVEL HE ALSO SAID HE EXPECTS THE BANK SOON TO RAISE THE OFFICIAL INTEREST RATE TO 120 FROM ITS CURRENT LEVEL OF 100 THIS BENCHMARK IS THE RATE THAT THE CENTRAL BANK CHARGES TO COMMERCIAL BANKS ON ANOTHER TOPIC MR FYODOROV SAID RUSSIA EXPECTS THE GROUP OF SEVEN INDUSTRIAL NATIONS COLLECTIVELY TO PROVIDE AT LEAST AS MUCH ASSISTANCE AS THEY DID LAST YEAR THAT PACKAGE TOTALED 24 BILLION THOUGH NOT ALL OF THAT WAS DELIVERED MR FYODOROV SAID MEMBERS OF THE G7 WHOSE FOREIGN AND FINANCE MINISTERS WILL MEET IN TOKYO WEDNESDAY WERE CORRECT IN PLEDGING TO SUPPORT RUSSIA'S EMBATTLED PRESIDENT YELTSIN IT'S NO SECRET THAT THE NAME YELTSIN IS TO A LARGE EXTENT SYNONYMOUS WITH REFORM IN OUR STATE MR FYODOROV SAID THE PRESIDENT IS THE GUARANTOR OF STABILITY FORWARD MOVEMENT AND CONTINUATION OF THE EXISTING LINE AT THE SAME TIME HE CAUTIONED MR YELTSIN AGAINST TRYING TO WIN VOTES FOR THE APRIL 25 REFERENDUM ON HIS FUTURE BY MAKING UNDUE PROMISES TO THE PUBLIC TO SOFTEN THE STING OF REFORM ALREADY MR YELTSIN HAS PLEDGED TO RESCIND RECENT GOVERNMENT DECREES THAT LIFTED THE PRICE OF GASOLINE AND RENT 9304120008 930412 BOEING SEEKING SECOND BIG JOB FROM CHINESE IT POSTS 800 MILLION ORDER MAY GET ONE TO MATCH THAT AMOUNT AT LEAST BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO WHICH LATE LAST WEEK ANNOUNCED AN 800 MILLION ORDER FROM CHINA FOR SMALLER JETLINERS IS NEGOTIATING A FURTHER PURCHASE BY CHINA OF AT LEAST THAT SIZE FOR WIDEBODIED AIRCRAFT ACCORDING TO BOEING AND CHINESE OFFICIALS CHINA'S AVIATION MARKET IS EXPANDING RAPIDLY IN CONTRAST TO THE AIRTRAVEL MARKET IN MOST OTHER PARTS OF THE WORLD SO COMPETITION FOR JETLINER ORDERS THERE IS INTENSE MOREOVER BOEING HOPES THAT STRONG AIRCRAFT ORDERS FROM CHINA WILL HELP PERSUADE THE CLINTON ADMINISTRATION TO CONTINUE CHINA'S TRADE STATUS AS A MOSTFAVORED NATION THE ADMINISTRATION WILL DECIDE IN JUNE WHETHER CHINA SHOULD RETAIN ITS MFN STATUS UNDER WHICH ITS EXPORTS TO THE US QUALIFY FOR THE LOWEST TARIFFS IF THE WHITE HOUSE THINKS CHINA HASN'T DONE ENOUGH TO IMPROVE ITS HUMANRIGHTS RECORD IT COULD REVOKE THE MFN DESIGNATION US AIRCRAFT MAKERS FEAR THAT CHINA WOULD RETALIATE BY INCREASING ITS PURCHASES FROM EUROPE'S AIRBUS INDUSTRIE OR BY DELAYING OR DEFERRING AIRCRAFT ORDERS FROM THE US MANUFACTURERS PRESIDENT CLINTON HAS MADE IT CLEAR THAT HE CARES ABOUT THE INTERNATIONAL COMPETITIVENESS OF THE US AIRCRAFT INDUSTRY WHICH IS SHARPLY CUTTING PRODUCTION AND EMPLOYMENT AMID THE GLOBAL ECONOMIC SLUMP AND THE COMPETITIVE PRESSURE FROM AIRBUS IN MAKING THE MFN DECISION THE ADMINISTRATION IS EXPECTED TO WEIGH THE ECONOMIC GAINS FROM CHINESE ORDERS OF US AIRCRAFT AGAINST HUMANRIGHTS WORRIES LARGE CHINESE PURCHASES OF BOEING JETS WOULD HEIGHTEN THE IMPORTANCE OF GOOD USCHINESE ECONOMIC RELATIONS ALTHOUGH MR CLINTON TALKED TOUGH ABOUT CHINA DURING THE PRESIDENTIAL CAMPAIGN HIS POSITION HAS BEEN SOFTENING LEADING CHINA EXPERTS TO BELIEVE THAT WHILE THE ADMINISTRATION WILL PUSH FOR AT LEAST FACESAVING CONCESSIONS ON THE HUMANRIGHTS ISSUE IT WILL CEDE ITS CHINA POLICY TO ECONOMIC PAYOFFS SUCH AS THE JET ORDERS AS PART OF FRIDAY'S ANNOUNCEMENT OF THE CHINESE ORDER FOR THE SMALLER JETS SEATTLEBASED BOEING DISTRIBUTED EXTENSIVE LITERATURE ABOUT WHAT IT SAID WAS THE IMPORTANCE OF PRESERVING MFN STATUS FOR CHINA WHICH IN 1992 TOOK DELIVERY OF MORE THAN 2 BILLION IN US AIRCRAFT AND PARTS ROBERT DRYDEN A BOEING EXECUTIVE VICE PRESIDENT NOTED AT AN ORDERSIGNING CEREMONY THAT 47 JETLINERS OR ABOUT 14 OF BOEING DELIVERIES THIS YEAR WILL GO TO CHINA OVER THE LONGER TERM CHINA HAS PROJECTED DEMAND FOR 800 PLANES DURING THE NEXT 15 YEARS THE CHINESE ORDER ANNOUNCED FRIDAY CONSISTS OF 20 BOEING 737300 JETS CAPABLE OF CARRYING 150 PASSENGERS AND ONE 757200 AIRLINER CAPABLE OF CARRYING 200 PASSENGERS IN A CHINESE MARKET WHERE AIR TRAVEL GREW ALMOST 32 LAST YEAR MANY OF THE AIRLINERS WILL BE USED BY SMALLER REGIONAL CARRIERS THAT HAVE FLOWN ONLY TURBOPROP PLANES AND ARE NOW EXPANDING INTO THE USE OF JETS NOW AN ORDER IS BEING NEGOTIATED THAT WOULD INCLUDE WIDEBODY 767 JETS WHICH CAN CARRY 275 PASSENGERS AND ADVANCED NEW 777 JETS CAPABLE OF CARRYING 390 PEOPLE BOEING ALSO HAS PROPOSED THAT ADDITIONAL 737S BE PART OF THE ORDER ONE CHINESE OFFICIAL SAID LI YUANMING CONTRACT MANAGER FOR CHINA AVIATION SUPPLY CORP CONFIRMED THE TALKS CHINA AVIATION SUPPLY IS THE PURCHASING SUBSIDIARY OF THE CIVIL AVIATION ADMINISTRATION OF CHINA WHICH HANDLES ALL ORDERS FOR AIRLINES THERE MR LI NOTED THAT IT IS HARD TO SAY WHETHER THE TALKS CAN BE COMPLETED BY JUNE WHEN THE MFN DECISION IS DUE THEY SHOULD EASILY BE CONCLUDED SOME TIME THIS YEAR HE ADDED HE SAID THE NEW ORDER WOULD BE AT LEAST AS LARGE IN DOLLAR VALUE AS THE ONE ANNOUNCED LAST WEEK THE LARGER TWINENGINE 777 AIRCRAFT WOULD BE INTENDED FOR AIR CHINA OF BEIJING WHILE THE 767S WOULD BE CHINA'S FIRST ORDER FOR THAT AIRCRAFT AND WOULD GO TO SHANGHAI AIRLINES BOEING'S LATEST ORDER FOLLOWED A RECENT ORDER BY TWO CARRIERS IN CHINA FOR 12 AIRBUS A300 JETLINERS THE EUROPEAN CONSORTIUM ALSO IS ACTIVELY PROMOTING ITS FOURENGINE A340 PLANE MR LI SAID THAT TALKS ARE CONTINUING WITH LEASING COMPANIES THAT ARE INTERESTED IN PLACING BOEING AND AIRBUS JET AIRCRAFT IN CHINA ALSO THE NO 3 AIRCRAFT MAKER MCDONNELL DOUGLAS CORP HAS PLACED LARGE NUMBERS OF ITS NARROWBODY JETS IN CHINA THROUGH A JOINT VENTURE IN SHANGHAI THAT BUILDS THE AIRCRAFT IT ALSO HAS BEEN PROMOTING ITS LARGER MD11 WIDEBODY THERE ASRA Q NOMANI IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9304120007 930412 WHAT SILICON VALLEY NEEDS FROM CLINTON BY TJ RODGERS MY COMPANY CYPRESS SEMICONDUCTOR MAKES DATACOMMUNICATIONS CHIPS USED IN ELECTRONIC SUPERHIGHWAYS MEMORY CHIPS FOR SUPERCOMPUTERS AND MICROPROCESSOR MODULES FOR MASSIVELY PARALLEL COMPUTERS A KIND OF SUPERCOMPUTER IT MIGHT APPEAR THAT WE WOULD BENEFIT GREATLY IF BILLIONS OF TAXPAYER DOLLARS WERE SHOWERED ON VARIOUS TECHNOLOGY PROJECTS FAVORED BY THE CLINTON ADMINISTRATION BUT SUCH SUBSIDIES WILL HURT OUR INDUSTRY WHY BECAUSE IT IS IMPOSSIBLE TO SEPARATE THE CLINTON TECHNOLOGY PROGRAM FROM THE ADMINISTRATION'S BROADER TAXANDSPEND ECONOMIC PLAN AND TAXANDSPEND PROGRAMS CAN'T HELP BUSINESSES INCLUDING MINE THE ADMINISTRATION WOULD HAVE US BELIEVE THAT THE BUSINESS LEADERS OF SILICON VALLEY STAND UNANIMOUSLY BEHIND IT BUT MANY OF US DISAGREE WITH THE PROPOSITION THAT THE RIGHT WAY TO ENHANCE AMERICA'S TECHNOLOGY LEADERSHIP IS TO INCREASE TAXES TO FINANCE GOVERNMENT MEGAPROGRAMS EVEN IF THE MEGAPROGRAMS SUPPORT TECHNOLOGIES BEING DEVELOPED BY THOSE COMPANIES THERE IS A SECOND DANGEROUS MISCONCEPTION IN THE PRESIDENT'S ECONOMIC PROGRAM IT PREACHES THE POLITICS OF ENVY YES THE WHITE HOUSE TELLS THE AMERICAN PEOPLE WE PLAN TO INCREASE SPENDING BY HUNDREDS OF BILLIONS BUT WE PLAN TO SPEND THAT ON YOU EVEN BETTER THEY THE BAD GUYS PAY FOR IT TO DESCRIBE THE BAD GUYS POLITICIANS OFFER CARICATURES IMAGES OF MICHAEL MILKEN AND IVAN BOESKY DEFRAUDING INVESTORS WHO WOULDN'T WANT TO TAX SUCH EXCESSES OF THE 1980S SO PLEASE ALLOW ME TO INTRODUCE MYSELF I AM AN EXCESS OF THE 1980S THROUGH CYPRESS I BECAME A PAPER MILLIONAIRE IN THE 1980S EIGHT TIMES OVER IN FACT HOW DID I PROFIT I STARTED A COMPANY IN SILICON VALLEY I OBTAINED STOCK IN THAT COMPANY WHEN IT HAD ONE EMPLOYEE ME AND ONE USED COMPUTER OVER ITS 10YEAR HISTORY CYPRESS HAS GENERATED MORE THAN 1 BILLION IN CUMULATIVE REVENUE MADE MORE THAN 160 MILLION IN PROFITS ON WHICH WE PAID 60 MILLION IN TAXES CREATED 1500 JOBS AND PAID CUMULATIVE SALARIES OF NEARLY 500 MILLION ON WHICH OUR EMPLOYEES PAID TAXES OF 150 MILLION ALL OUR EMPLOYEES OWN CYPRESS STOCK I AM A PERSON OF SIMPLE TASTES THEREFORE I STILL HAVE MOST OF THE WEALTH ASSOCIATED WITH MY CYPRESS SHARES WHAT HAVE I DONE WITH THAT WEALTH I INVESTED IT IN FACT I INVESTED IT IN PRECISELY THE KINDS OF COMPANIES ON WHICH THE ADMINISTRATION WANTS TO SHOWER TAXPAYER SUBSIDIES THE WORLD'S MOST ADVANCED COMPETITORS IN FIELDS SUCH AS SEMICONDUCTORS BIOTECHNOLOGY SOFTWARE NETWORKING ENVIRONMENTAL SCIENCES AND HEALTH CARE NEARBY IS A LIST OF SOME 100 COMPANIES IN WHICH I HOLD INVESTMENTS THROUGH MY PARTICIPATION IN THREE VENTURECAPITAL FUNDS EIGHTEEN OF THOSE COMPANIES ARE INNOVATORS AND LEADERS IN HIGHSPEED DATA COMMUNICATIONS OTHER COMPANIES ARE INNOVATORS IN THE FIELD OF HIGHPERFORMANCE COMPUTING EVERY INCREMENTAL DOLLAR THAT WASHINGTON TAKES FROM ME COMES DIRECTLY OUT OF MY INVESTMENTS IN THESE COMPANIES UNDER A HIGHER TAX REGIME I CANNOT SELL MY HOUSE OR CAR BUT I AM GOING TO INVEST LESS AFTER ALL THE CASH TO PAY MY HIGHER TAXES HAS TO COME FROM SOMEWHERE ESSENTIALLY THE ADMINISTRATION IS ARGUING THAT BY TAKING MY MONEY IN THE FORM OF HIGHER TAXES AND INVESTING IT IN SUBSIDIES IT CAN MAKE BETTER INVESTMENTS THAN THE VENTURECAPITAL FIRMS WITH WHICH I INVEST FIRMS THAT ARE ALREADY THE ENVY OF JAPAN AND EUROPE THAT LOGIC DEFIES COMMON SENSE THE CLINTON PLAN ALSO RAISES TAXES ON CYPRESS AS A CORPORATION SUPPOSE AS A RESULT OF THE PLAN THAT CYPRESS'S CORPORATE TAXES INCREASE BY 1 MILLION NEXT YEAR AS CHIEF EXECUTIVE MY ONLY CHOICE IS TO TAKE THAT MONEY DIRECTLY OUT OF R&D OUR LIFEBLOOD A TAX INCREASE OF 1 MILLION MEANS THAT CYPRESS WILL EMPLOY 10 FEWER PHD TECHNOLOGISTS THAN IT WOULD OTHERWISE THE THIRD MISCONCEPTION IN THE CLINTON PLAN BRINGS US DIRECTLY TO HIGH TECHNOLOGY AND HIGHPERFORMANCE COMPUTING IT IS THE PROPOSITION THAT THE BEST WAY FOR GOOD IDEAS TO BECOME MARKETPLACE REALITIES IS FOR GOVERNMENT TO SUBSIDIZE THEM WHAT DOES WORK THEN THE FREE MARKET TODAY IN INDUSTRY AFTER INDUSTRY SEMICONDUCTOR CHIPS COMPUTERS BIOTECHNOLOGY US COMPANIES LEAD THE WORLD OR ARE DEMONSTRATING REMARKABLE COMEBACKS AMERICAN PERFORMANCE HAS RELIED ON THE INVISIBLE HAND WHILE JAPAN AND EUROPE HAVE RELIED ON GOVERNMENT TARGETING AND SUBSIDIES TO SEE THE DRAMA IN THIS THINK BACK TO JUST FIVE YEARS AGO WHEN AMERICA WAS IN A PANIC ABOUT THE JAPANESE GOVERNMENT'S HIGHDEFINITION TELEVISION PROGRAM OR HDTV TODAY EVERYONE AGREES THAT IT WAS A MULTIBILLIONDOLLAR FLOP AND THAT AMERICA HAS WON THANKS TO THE MESSY UNCOORDINATED INNOVATIONS OF MANY PRIVATE COMPANIES WE ALSO LIVED IN FEAR OF THE JAPANESE FIFTH GENERATION COMPUTER PROJECT TRON WAS GOING TO WALK TALK AND EAT OUR LUNCH IT TOO FAILED OR THINK ABOUT EUROPE AMAZINGLY WE STILL HAVE EXPERTS WHO WANT US TO EMULATE ITS ALPHABET SOUP OF TECHNOLOGY CONSORTIUMS SUCH AS JESSI EUROPE'S EQUIVALENT OF THE US CHIP CONSORTIUM SEMATECH JESSI SHOWERED BILLIONS ON THE EUROPEAN SEMICONDUCTOR INDUSTRY IT ALSO RATIONALIZED THE INDUSTRY BY ALLOCATING MARKET SEGMENTS TO VARIOUS COMPANIES SIEMENS BECAME THE DRAM DYNAMIC RANDOM ACCESS CHIP COMPANY FOR EUROPE AND HAS SINCE GONE OUT OF THE BUSINESS PHILIPS BECAME THE SRAM STRATEGIC RANDOM ACCESS CHIP COMPANY FOR EUROPE AND HAS SINCE GONE OUT OF THAT BUSINESS TODAY THERE IS NO MAJOR EUROPEAN CHIP INDUSTRY OR COMPUTER INDUSTRY TO SPEAK OF THANKS TO THE ROLE OF PROGRAMS LIKE JESSI IN THE US SEMATECH ITSELF SOMETIMES SLOWED THE PROGRESS OF THE SEMICONDUCTOR INDUSTRY THE NEW ADMINISTRATION'S PROGRAMS REPRESENT THE SAME KIND OF MISGUIDED INDUSTRIAL POLICY FOR EXAMPLE THE ADMINISTRATION PROPOSES BIG SPENDING INCREASES ON A RANGE OF PROJECTS TO SPEED CREATION OF THE DATA SUPERHIGHWAY THE TROUBLE HERE IS THAT MULTIPLE COMPETING DATA HIGHWAYS ARE ALREADY BEING BUILT BY PRIVATE COMPANIES ACROSS THE US ENTREPRENEURS ARE RACING TO DEVELOP NEW NETWORKING SYSTEMS NEW SOFTWARE INTERFACES NEW VALUEADDED SERVICES MCI AT&T AND SPRINT ALREADY HAVE THREE INDEPENDENT COASTTOCOAST FIBERBASED LONGHAUL NETWORKS THE REAL ISSUE IS EXTENDING THOSE NETWORKS INTO THE HOME THE ROLE FOR GOVERNMENT IN THIS IS TO UNTANGLE BUREAUCRACY AND REGULATIONS THAT PREVENT COMPANIES FROM HOOKING UP THE LAST MILE OF FIBER TO THE HOME FOR EXAMPLE THE REGIONAL BELL OPERATING COMPANIES WOULD GLADLY HOOK FIBER OPTICS FROM THE LONGHAUL NETWORK TO THE HOME BUT THEY ARE PREVENTED FROM DOING SO BY REGULATIONS THAT MAKE THE HUGE CAPITAL INVESTMENTS UNECONOMICAL CABLE OPERATORS ARE ALREADY HOOKED INTO 60 OF AMERICAN HOMES THEY TOO COULD MAKE THE CONNECTION WITH EXISTING LONGHAUL DATA SUPERHIGHWAYS BUT THEY ARE PREVENTED BY REGULATIONS THAT DECLARE THEM A NATURAL MONOPOLY AND RESTRICT THEM TO THE TV AND MOVIE BUSINESS THE LONGHAUL SUPERHIGHWAY COULD BE HOOKED TO THE HOME THROUGH WIRELESS CIRCUITS BUT THE FREQUENCIES REQUIRED ARE CURRENTLY BEING HELD UP BY THE FEDERAL COMMUNICATIONS COMMISSION THE MOST CONSTRUCTIVE THING THE CLINTON ADMINISTRATION CAN DO INVOLVES IMPROVING INFRASTRUCTURE NOT ROADS AND BRIDGES OR EVEN DATA SUPERHIGHWAYS BUT FINANCIAL INFRASTRUCTURE THE SCARCE SUPPLY OF REASONABLY PRICED CAPITAL DEPRIVES COMPANIES OF THE CHANCE TO BUILD MANUFACTURING MUSCLE AND CREATE JOBS THE FIRST STEP IS TO MAKE MORE DRAMATIC SPENDING CUTS THAN THE ONES THE DEMOCRATS PLAN BOEING RECENTLY ANNOUNCED PLANS TO DISMISS 20 OF ITS WORKERS MY COMPANY RECENTLY TOOK THE PAINFUL STEP OF DISMISSING 20 OF OUR WORKERS TO BECOME MORE EFFICIENT BY CONTRAST ADMINISTRATION PLANS TO ELIMINATE 100000 FEDERAL JOBS OVER THE NEXT FOUR YEARS ONLY 5 OF A TOTAL WORK FORCE OF TWO MILLION DO NOT LOOK PARTICULARLY SIGNIFICANT TO IMPOSE TRUE SPENDING DISCIPLINE CONGRESS MUST PASS A BALANCEDBUDGET AMENDMENT AND APPROVE THE LINEITEM VETO WASHINGTON SHOULD ALSO RESTRUCTURE THE CAPITALGAINS TAX TO ENCOURAGE LONGTERM INVESTMENT THE CLINTON ADMINISTRATION HAS PROPOSED A MODEST REDUCTION IN THE CAPITALGAINS TAX THAT IS TARGETED TO TINY COMPANIES THE PROPOSAL IS GOOD POLITICAL SYMBOLISM BUT IT DOES NOT ADDRESS THE PROBLEMS OF ENTREPRENEURS IT FOCUSES ON STARTUP COMPANIES WHILE MANY DIFFICULTIES BEGIN AT THE NEXT STAGE WHEN A COMPANY NEEDS THAT SECOND OR THIRD 10 MILLION TO BUILD A PLANT AND ACQUIRE REAL MANUFACTURING MUSCLE THIS STAGE IS WHEN YOUNG COMPANIES MUST TURN TO THE PUBLIC CAPITAL MARKETS OR TO CASHRICH FOREIGN OPERATIONS EAGER TO ACQUIRE VALUABLE AMERICAN TECHNOLOGY AT BARGAINBASEMENT PRICES THE BEST WAY TO REDUCE THE SERIOUS BARRIERS TO PROGRESS IS TO ENACT A SWEEPING RESTRUCTURING OF THE CAPITALGAINS TAX TO DISCOURAGE UNPRODUCTIVE SPECULATION AND FEND OFF CHARGES OF CREATING A TAX BREAK FOR THE RICH WE SHOULD AT THE SAME TIME INCREASE TAXES ON ASSETS HELD LESS THAN SIX MONTHS WE SHOULD ELIMINATE CAPITALGAINS TAXES ON ASSETS HELD FOR MORE THAN THREE YEARS ASSETS THAT HELP BUILD AMERICA ASSETS HELD BETWEEN SIX MONTHS AND THREE YEARS SHOULD BE TAXED AT THE CURRENT INCOMETAX RATE AMERICA HAS PLENTY OF WORK TO DO ON THE ECONOMIC PROBLEMS WE HAVE CREATED FOR OURSELVES PROBLEMS THAT TRACE THEIR ROOTS TO FISCAL RECKLESSNESS ULTIMATELY THOUGH THE ECONOMIC BATTLES OF THE 1990S WILL BE WON IN AMERICA'S FACTORIES LABS AND OFFICES NOT IN THE HALLS OF CONGRESS OR THE CORRIDORS OF THE COMMERCE DEPARTMENT AMERICA'S ENTREPRENEURS HAVE THE GUTS BRAINS AND DRIVE TO BEAT THE BEST THE WORLD HAS TO OFFER ALL WE NEED FROM WASHINGTON IS THE CONFIDENCE TO LET US FIGHT MR RODGERS IS PRESIDENT AND CEO OF CYPRESS SEMICONDUCTOR CORP BASED IN SAN JOSE MR RODGERS HAS USED THE PROFITS HE EARNED THROUGH HIS OWN FIRM TO INVEST IN THE COMPANIES LISTED MANY OF THEM ARE THE KIND OF HIGHTECH BUSINESS THE CLINTON ADMINISTRATION HAS SAID IT HOPES TO STRENGTHEN BUT AFTER THE CLINTON TAX HIKES MR RODGERS WILL ACTUALLY HAVE LESS MONEY TO INVEST IN THE COMPANIES THE OPEN QUESTION IS WHETHER THE ADMINISTRATION CAN INVEST AS EFFICIENTLY THROUGH INDUSTRIAL POLICY 9304120006 930412 PAPER LUMBER ARE DIVERGING IN THEIR RESULTS WOOD COMPANIES ENJOY A BOOM BUT PULP FACES WEAK GLOBAL DEMAND BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL THE NORTH AMERICAN PAPER AND FORESTPRODUCTS INDUSTRY CONTINUES TO TELL A TALE OF TWO SECTORS FOR WOOD PRODUCTS IT IS THE BEST OF TIMES FOR PULP AND PAPER IT'S VERY GRIM AS PRESIDENT CLINTON'S RECENT TIMBER CONFERENCE UNDERSCORED ENVIRONMENTAL RESTRICTIONS HAVE PUT A LONGTERM CRIMP IN LUMBER SUPPLIES DRIVING PRICES TO RECORD LEVELS AT THE OTHER EXTREME MARKET PULP PRICES LANGUISH FAR BELOW LEVELS OF JUST A FEW MONTHS AGO AS INVENTORIES REMAIN HIGH AND GLOBAL MARKETS WEAK PRICING FOR MOST PAPER PRODUCTS IS STABLE AT BEST SO ANALYSTS HAVE ONCE AGAIN BEEN RATCHETING UP EARNINGS ESTIMATES FOR COMPANIES THAT PRODUCE A LOT OF LUMBER WHILE TEMPERING HOPES FOR BROADER IMPROVEMENT IN THE INDUSTRY THE WOOD SIDE OF THE BUSINESS HAS GONE BERSERK ON THE UPSIDE SAID GEORGE ADLER OF SMITH BARNEY HARRIS UPHAM & CO BUT THE ANALYST NOW HAS BIG QUESTIONS AS TO WHETHER MOST PAPER COMPANIES WILL BE ABLE TO DO BETTER IN THIS YEAR'S SECOND QUARTER THAN IN THE FIRST AS HE AND OTHERS HAVE FORECAST IT'S NOT A PRETTY PICTURE SO FAR HE SAID SWEDISH AND FINNISH PRODUCERS OF PULP AND LINERBOARD USED IN CARDBOARD BOXES HAVE BEEN AGGRESSIVELY PASSING ON THEIR COST BENEFITS FROM CURRENCY SHIFTS SAID ANALYST MARK DIVERIO OF LEHMAN BROTHERS A LOT OF PEOPLE ARE GRAPPLING TO RETAIN MARKET SHARE ANALYSTS ARE ESTIMATING THAT HIGHER WOOD PRICES HELPED WEYERHAEUSER CO EARN 55 TO 60 CENTS A SHARE IN THE FIRST QUARTER EXCLUDING NONRECURRING ITEMS COMPARED WITH 43 CENTS A SHARE A YEAR EARLIER A WEYERHAEUSER SPOKESMAN DECLINED TO COMMENT ON THE ESTIMATES A SPOKESMAN FOR BOISE CASCADE CORP SAID THE COMPANY WILL DO BETTER THAN ANALYSTS' ESTIMATES FOR A PERSHARE LOSS OF 75 CENTS OR MORE IN THE FIRST QUARTER COMPARED WITH A YEAREARLIER LOSS OF 130 A SHARE BEFORE NONRECURRING ITEMS A VERY STRONG PERFORMANCE IN WOOD PRODUCTS OFFSET LOWER AVERAGE PRICES COMPARED WITH THE FOURTH QUARTER FOR UNCOATED FREE SHEET PAPER CONTAINER BOARD AND MARKET PULP SAID THE SPOKESMAN RECENT MODEST IMPROVEMENT IN PRICES FOR UNCOATED FREE SHEET PAPER USED WIDELY IN OFFICES SHOULD CONTINUE IN THE SECOND QUARTER THE SPOKESMAN SAID CHAMPION INTERNATIONAL CORP WILL POST A FIRSTQUARTER LOSS WITHIN THE RANGE OF ANALYSTS' ESTIMATES OR BETWEEN 20 CENTS AND 50 CENTS A SHARE A SPOKESWOMAN SAID THE ESTIMATES WHICH EXCLUDE ANY NONRECURRING ITEMS COMPARE WITH A YEAREARLIER PROFIT OF 8 CENTS A SHARE CHAMPION EXPECTS TO SEE MORE OF THE RECOVERY UNFOLD IN THE SECOND QUARTER BUT IT SEEMS IT'S GOING TO BE SLOWER THAN ALL OF US HAD HOPED THE SPOKESWOMAN SAID ATTEMPTED PRICE INCREASES FOR UNCOATED PAPER HAVE BEEN PARTIALLY SUCCESSFUL SHE SAID THE COMPANY HOPES FOR FURTHER SOLIDIFYING IN WHITEPAPER PRICES IN THE CURRENT QUARTER NEWSPRINT MAKERS AND PUBLISHING EXECUTIVES SAY A MARCH 1 PRICE INCREASE OF 48 A METRIC TON IN EASTERN NORTH AMERICA APPEARS TO BE TAKING HOLD THOUGH NOT ALL BUYERS MAY BE PAYING THE FULL INCREASE BUT A SIMILAR PRICE INCREASE ON THE WEST COAST WHICH HAD BEEN SCHEDULED FOR APRIL 1 HAS BEEN PUSHED BACK TO JUNE OR JULY REFLECTING CONTINUED WEAKNESS IN THE SOUTHERN CALIFORNIA MARKET AND SOME INDUSTRY OBSERVERS BELIEVE EAST COAST PRICES COULD SOFTEN AGAIN THIS SUMMER IF LABOR NEGOTIATIONS AT EASTERN CANADIAN MILLS ARE SETTLED WITHOUT MAJOR SUPPLY DISRUPTIONS A SPOKESMAN FOR ABITIBIPRICE INC THE TARGET COMPANY IN THIS YEAR'S EASTERN CANADIAN NEGOTIATIONS SAID WE'RE VERY OPTIMISTIC THAT THERE WILL NOT BE A LABOR DISRUPTION THOUGH THE TALKS ARE STILL IN AN EARLY PHASE OFFICIALS OF THE PAPERWORKERS UNION HAVE SAID JOB SECURITY IS THEIR TOP PRIORITY IN THIS YEAR'S TALKS AND THAT THEY AREN'T SEEKING CONFLICT BUT THEY ALSO WARN THAT THEY WON'T ROLL OVER DESPITE THE INDUSTRY'S PROBLEMS IF THE COMPANIES ARE TOO DEMANDING THE ABITIBIPRICE SPOKESMAN SAID AN ANALYST'S ESTIMATE THAT THE COMPANY HAD A LOSS OF 25 CANADIAN CENTS ABOUT 20 US CENTS A SHARE IN THE FIRST QUARTER EXCLUDING ANY NONRECURRING ITEMS IS PROBABLY WITHIN 10 CENTS OF THE MARK IN THE YEAREARLIER QUARTER THE COMPANY HAD A LOSS OF 56 CANADIAN CENTS A SHARE ON CONTINUING OPERATIONS A SPOKESWOMAN FOR MACMILLAN BLOEDEL LTD IN VANCOUVER BRITISH COLUMBIA SAID AN ESTIMATE THAT THE COMPANY HAD A LOSS OF 10 CANADIAN CENTS A SHARE IN THE FIRST QUARTER BEFORE A NONRECURRING GAIN IS REASONABLE THE ACTUAL RESULT COULD BE BETTER THAN THAT SHE ADDED THAT COMPARES WITH A YEAREARLIER LOSS OF 12 CANADIAN CENTS A SHARE OPERATING EARNINGS WERE MUCH IMPROVED FROM THE 1992 FIRST QUARTER BUT HIGHER INTEREST EXPENSES AND LOWER INCOME FROM AFFILIATES PARTLY OFFSET THAT ACCORDING TO THE SPOKESWOMAN WEAK OVERSEAS MARKETS APPEAR TO BE PREVENTING PRICE INCREASES FOR CONTAINERBOARD DESPITE RELATIVELY HIGH OPERATING RATES IN THE SEGMENT SHE SAID A SPOKESWOMAN FOR BOWATER INC A DARIEN CONN NEWSPRINT AND PULP PRODUCER SAID THE COMPANY IS HAPPY WITH ANALYSTS' ESTIMATES THAT THE COMPANY HAD A LOSS OF 57 CENTS TO 70 CENTS A SHARE IN THE FIRST QUARTER FOR THE YEAREARLIER QUARTER BOWATER HAD A LOSS OF 51 CENTS A SHARE BEFORE NONRECURRING ITEMS 9304120005 930412 CREDIT MARKETS WHAT PRICE CMOS FUNDS HAVE NO IDEA BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU OWN A BOND MUTUAL FUND YOU PROBABLY OWN SOME EXOTIC MORTGAGEBACKED SECURITIES BUT DON'T BOTHER ASKING YOUR FUND MANAGER WHAT THEY'RE WORTH CHANCES ARE THE MANAGER DOESN'T REALLY KNOW BOND FUND MANAGERS HAVE BEEN LOADING UP ON A TYPE OF MORTGAGEBACKED SECURITIES KNOWN AS COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS THE SECURITIES ARE CROPPING UP NOT JUST IN MORTGAGE FUNDS BUT IN GOVERNMENT AND CORPORATE BOND FUNDS AS WELL WELL MORE THAN 100 FUNDS WITH 131 BILLION UNDER MANAGEMENT HAVE AT LEAST 5 OF THEIR PORTFOLIO IN THESE SECURITIES UP 32 FROM SIX MONTHS AGO ACCORDING TO DATA FROM NEW YORK'S STRATEGIC INSIGHT AND CHICAGOBASED MORNINGSTAR INC THAT'S BECAUSE THE MORE EXOTIC TYPES OF CMOS CAN CARRY YIELDS AS HIGH AS 30 COMPARED WITH A PUNY 69 FOR LONGTERM TREASURY BONDS AND 76 FOR TOPGRADE CORPORATE DEBT THIS STRATEGY MAY ALLOW FUNDS TO BOAST SEDUCTIVELY HIGH YIELDS BUT IT ALSO RAISES SOME THORNY ISSUES FOR SHAREHOLDERS NOT TO MENTION THE FUND MANAGERS WHO ARE REQUIRED BY THE SECURITIES & EXCHANGE COMMISSION TO MARK THEIR PORTFOLIOS TO MARKET DAILY PRICING IS REALLY A PROBLEM SAYS DALE CHRISTENSON MANAGING DIRECTOR FOR FIXEDINCOME AT NEW YORK'S WARBURG PINCUS BECAUSE THE SECURITIES ARE SO DIFFICULT TO PRICE INVESTORS WHO BUY AND SELL FUND SHARES MAY END UP GETTING A PRICE THAT IS TOO HIGH OR TOO LOW AND INEXACT PRICES MEAN FUND RETURN NUMBERS MAY BE WRONG MOREOVER BECAUSE CMOS ARE SO NEW TO MANY FUNDS SHAREHOLDERS CAN'T GAUGE HOW THE FUNDS MIGHT REACT TO A RAPID CHANGE IN INTEREST RATES IF RATES MOVE SHARPLY YIELDS MIGHT ZIGZAG MORE THAN INVESTORS EXPECT YOU CAN'T TELL A THING ABOUT THESE FUNDS FROM THE PROSPECTUSES THE POTENTIAL FOR SURPRISES IS VERY GREAT SINCE THE SHAREHOLDER REPORTS DON'T TELL YOU ANYTHING SAYS JOHN REKENTHALER A MUTUAL FUND ANALYST AT MORNINGSTAR AVERAGE HOLDINGS TOO HAVE SKYROCKETED NEARLY 100 BOND FUNDS WITH 36 BILLION UNDER MANAGEMENT HOLD 15 OR MORE OF THEIR ASSETS IN CMOS MUCH OF THAT MONEY IS IN MORTGAGE DERIVATIVES SUCH AS INTERESTONLY STRIPS PRINCIPALONLY PIECES AND INVERSE FLOATERS THAT BOUNCE AROUND SHARPLY IN PRICE INCREASINGLY THESE COMPLEX SECURITIES PRESENT PRICING PROBLEMS FOR THE FUND MANAGERS AND PRICING IMPRECISE AS IT IS DOESN'T EVEN COME CHEAP MERRILL LYNCH PRICING SERVICE CHARGES ITS FUND CUSTOMERS 2 A BOND PER DAY AS MUCH AS 50000 A YEAR FOR A FUND WITH 100 BONDS TO PRICE THAT COMPARES WITH 50 CENTS A BOND DAILY FOR A JUNK BOND OR CORPORATE BOND WHO PAYS THE FUND'S SHAREHOLDERS MORTGAGEBACKED SECURITIES ARE CREATED FROM POOLS OF MORTGAGES SLICED INTO NUMEROUS SECURITIES CALLED TRANCHES EACH TRANCHE BEHAVES DIFFERENTLY WHEN INTEREST RATES CHANGE WHEN INTEREST RATES FALL HOMEOWNERS REFINANCE SO HOLDERS OF MORTGAGEBACKED SECURITIES GET THEIR MONEY BACK SOONER FOR HOLDERS OF MORTGAGE DERIVATIVES THOUGH PREPAYMENTS CAN MEAN A WINDFALL PROFIT OR A BLINDING LOSS DEPENDING ON THE TRANCHE THEY HOLD BUT FUND SHAREHOLDERS CAN'T PINPOINT HOW THEIR MUTUAL FUND MIGHT REACT TO A CHANGE IN RATES THAT'S BECAUSE THE DESCRIPTION OF THE SECURITIES IN FUND REPORTS TO SHAREHOLDERS PUBLISHED SEMIANNUALLY AT BEST IS TERSE TO SAY THE LEAST SOMETIMES THE SHAREHOLDER WILL SEE ONLY THE CMO'S INTEREST RATE AND FINAL MATURITY AS IN THE CASE OF SECURITIES OWNED BY VANGUARD'S SHORT TERM CORPORATE FUND OR ELSE A CODE DESIGNATING THE ISSUER POOL NUMBER AND TRANCHE NUMBER FORGET ABOUT ANY INDICATION OF WHAT SPECIAL PROPERTIES THAT BOND MIGHT HAVE SUCH AS FLOATING INTEREST RATES INTEREST RATE CAPS OR FLOORS OR EVEN THE AVERAGE LIFE OF THE SECURITY THESE VARIOUS FEATURES CAN HAVE A BIG IMPACT ON HOW THE SECURITIES PERFORM FOR EXAMPLE A SECURITY LISTED AS FHLMC 1049 D IS A BOND THAT ENTITLES THE HOLDER TO THE INTEREST ONLY FROM A POOL OF RECENT MORTGAGES BUNDLED TOGETHER BY THE FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC WHEN IT WAS ORIGINALLY ISSUED THE AVERAGE OF ITS PRINCIPAL REPAYMENTS WAS SIX YEARS BUT BECAUSE OF PREPAYMENTS THE BOND'S LIFE WAS SHORTENED TO ROUGHLY SIX MONTHS THAT BRIEF DEFINITION IS A STARTING POINT FOR TRADERS TRYING TO PRICE THE SECURITIES THEY USE COMPUTER MODELS THAT APPROXIMATE HOW INTERESTRATE CHANGES AFFECT PREPAYMENTS BUT EVERY UNDERWRITER USES A DIFFERENT MODEL AS A RESULT PRICES CAN DIVERGE GREATLY MUTUAL FUND MANAGERS RELY ON OUTSIDE PRICING SERVICES TO PRICE THEIR PORTFOLIOS THE SERVICES USE PREPAYMENT MODELS TO CALCULATE THE APPROPRIATE SPREAD OVER TREASURYS HOW MUCH MORE THE MORTGAGEBACKED SECURITY SHOULD YIELD THAN A TREASURY BOND OF SIMILAR MATURITY SIMILARLY STRUCTURED BONDS ARE GROUPED TOGETHER IN A SOCALLED MATRIX IGNORING SUBTLETIES THAT MIGHT CAUSE PRICES TO VARY FUND MANAGERS INSIST THAT MATRIX PRICING IS GOOD ENOUGH THAT ERRORS ABOVE AND BELOW THE MARKET PRICE OFFSET EACH OTHER BUT PRIVATELY TRADERS AND FUND MANAGERS CONCEDE THAT STANDARDS OF ACCURACY ARE FAR LESS RIGOROUS THAN FOR OTHER SECURITIES THE GOAL FOR A STABLE PLANNEDAMORTIZATIONCLASS BOND OR PAC FOR EXAMPLE IS TO GET WITHIN ONEQUARTER POINT OR WITHIN 250 FOR A BOND WITH A 1000 FACE VALUE ACCORDING TO THE DIRECTOR OF RESEARCH OF ONE LEADING UNDERWRITER BUT PRICING MORTGAGE DERIVATIVES SUCH AS INTERESTONLY STRIPS AND INVERSE FLOATERS IS TRICKIER MERRILL LYNCH PRICING SERVICE WHICH PRICES ABOUT TWOTHIRDS OF THE MORTGAGEBACKED SECURITIES OUTSTANDING DOESN'T TRACK THE VALUES OF THESE MORE VOLATILE INSTRUMENTS NONE OF THE SERVICES PRICE INTERESTONLY STRIPS THAT LEAVES MANAGERS SCRAMBLING TO HANDPRICE THEIR BONDS BY CALLING DEALERS AN EXERCISE THAT CAN TAKE AS LONG AS 20 MINUTES A BOND AND THE DISCREPANCIES YAWN FROM DEALER TO DEALER IT'S NOT UNUSUAL TRADERS SAY FOR MORTGAGE DERIVATIVE PRICES TO BE OFF BY SEVERAL POINTS SINCE THESE BONDS OFTEN SELL AT FAR LESS THAN PAR A DISCREPANCY OF A POINT IS COSTLY IF AN INTERESTONLY STRIP IS PRICED AT 30 AND IS UNDERPRICED BY A POINT THAT COSTS HOLDERS 10 FOR A BOND WITH A 300 FACE VALUE OR NEARLY 3 1/2 PART OF THE PROBLEM IS UNDERWRITERS' RELUCTANCE TO TRACK EVERY MORTGAGEBACKED SECURITY THEY UNDERWRITE IT'S EXPENSIVE AND TIMECONSUMING SAYS RONALD B CIESLA DIRECTOR OF MERRILL LYNCH PRICING SERVICE THE OLDEST CMO PRICING SERVICE INDEED IT CAN COST A FIRM AS MUCH AS 6 MILLION TO SET UP THE SOFTWARE TO TRACK EACH TRANCHE'S PERFORMANCE AND MAINTAIN THAT DATABASE SOME LARGE MUTUAL FUNDS TRY TO GET BETTER PRICE DATA BY LEAVING LISTS OF THEIR HOLDINGS WITH TRADING DESKS THAT THEY CALL REGULARLY FOR PRICES THAT'S PART OF THE OBLIGATION THEY TAKE ON WHEN THEY SELL ME THE BONDS SAYS ROBERT AUWAERTER COMANAGER OF THE VANGUARD FIXED INCOME SHORT TERM FEDERAL FUND OTHER MANAGERS COMPROMISE BY USING MATRIX PRICES FOR DAILY QUOTES AND RIGOROUSLY PRICING THE PORTFOLIO ONCE A MONTH FORGET ABOUT TRADING THE PORTFOLIO THEN SAYS A MORTGAGE DERIVATIVE TRADER WHO PRICES BONDS FOR A HANDFUL OF MUTUAL FUNDS MANAGERS SOMETIMES SPEND TWO SOLID DAYS JUST PRICING THEIR BONDS BUT TIME DOESN'T STAND STILL FOR FUND SHAREHOLDERS WHO CONTINUE TO WITHDRAW MONEY OR BUY INTO THE FUND EVERY DAY WHILE ITS MANAGERS STRUGGLE TO PRICE SECURITIES THE SHAREHOLDERS MUST BUY AND SELL AT NET ASSET VALUE RARELY REALIZING THAT THIS VALUE IS JUST AN APPROXIMATION HERE'S A PARTIAL LISTING OF LEADING MUTUAL FUND HOLDINGS OF CMOS BASED ON FUNDS' PUBLISHED REPORTS NOTE HOLDINGS MAY NOT EXACTLY CORRESPOND TO PERCENTAGES DUE TO ROUNDING 9304120004 930412 BUSINESS BRIEF COSMO OIL CO OIL REFINER EXPECTS TO POST RECORD PROFIT FOR FISCAL '93 JAPAN'S COSMO OIL CO SAID THAT PRETAX PROFIT FOR THE FISCAL YEAR ENDED MARCH 31 1993 WILL BE THE COMPANY'S LARGEST SINCE IT WAS FOUNDED IN 1986 A SPOKESMAN SAID THAT THE OIL REFINER'S PRETAX PROFIT NOW IS EXPECTED TO REACH THE 30 BILLION YEN LEVEL 264 MILLION UP ROUGHLY 79 FROM 2781 BILLION YEN IN FISCAL 1991 THE LARGEST FIGURE PREVIOUSLY REPORTED LAST NOVEMBER THE COMPANY PREDICTED ITS PRETAX PROFIT FOR THE FULL FISCAL YEAR WOULD REACH 28 BILLION YEN ABOUT 10 BILLION YEN IS EXPECTED AS A WINDFALL FROM THE STRENGTH OF THE YEN IN FOREIGN CURRENCY MARKETS MAKING THE DOLLARDENOMINATED PRICE OF OIL CHEAPER FOR JAPANESE OIL COMPANIES THE SPOKESMAN SAID HE ALSO CITED THE SCALING DOWN OF COSTS AND THE STABILITY OF THE MARKET AS FACTORS CONTRIBUTING TO THE EXPECTED RISE IN PRETAX PROFIT BUT HE INDICATED THAT SALES WILL BE ROUGHLY THE SAME OR SLIGHTLY LOWER FROM A YEAR EARLIER AT SLIGHTLY ABOVE 150 TRILLION YEN IN COMPARISON WITH THE FORECAST OF 156 TRILLION YEN MADE IN NOVEMBER 9304120003 930412 HEALTH CONCERN ABOUT KIDS' SAFETY SPURS RISE IN KARATE AND OTHER FITNESS PROGRAMS BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL MILL VALLEY CALIF IT'S SATURDAY AFTERNOON AND A GROUP OF CHILDREN ARE GIGGLING AS SEVENYEAROLD PAULA DEWART KICKS HER FATHER IN THE GROIN YOU SHOULD NEVER TRY TO FIGHT WITH AN ADULT BECAUSE YOU CAN'T OVERPOWER THEM SAYS MR DEWART A SEVENTHDEGREE BLACK BELT IN TAE KWON DO WHO TEACHES CHILDREN'S SELFDEFENSE WITH HIS DAUGHTER'S ASSISTANCE BUT HE ASSURES THE KIDS YOU CAN DO THINGS THAT CAN SURPRISE ADULTS THE CHILDREN AGED FIVE TO 12 THEN LEARN HOW TO RAP THEIR KNUCKLES ON THE BACK OF A GROWNUP'S HAND PINCH THE INSIDE OF A THIGH AND BANG THEIR HEAD AGAINST THE BRIDGE OF AN ADULT'S NOSE GROWING CONCERNS ABOUT SAFETY ARE HELPING FUEL INTEREST IN A WIDE RANGE OF CHILDREN'S FITNESS PROGRAMS ENROLLMENT IN MARTIALARTS CLASSES IS UP MORE HEALTH CLUBS ARE FEATURING CHILDREN'S PROGRAMS AND A NUMBER OF COMPANIES ARE OFFERING PAYFORPLAY PROGRAMS WITH THE RISE OF TWOCAREER COUPLES AND SINGLEPARENT FAMILIES THERE IS LESS SUPERVISION FOR CHILDREN AFTER SCHOOL A TIME WHEN MANY KIDS TRADITIONALLY GOT THEIR EXERCISE PARENTS ARE AFRAID TO LET THEIR CHILDREN JUST GO OUT AND PLAY SAYS JOHN BURSTEIN FOUNDER OF THE INTERNATIONAL KIDS' FITNESS ALLIANCE BASED IN NEW YORK AFTER SCHOOL KIDS ARE TOLD TO GO HOME LOCK THE DOOR AND DON'T YOU DARE GO OUTSIDE UNTIL MOM OR DAD COMES HOME ADDS GARY SEIBERT PRESIDENT OF KIDSPORTS INTERNATIONAL INC A CHAIN OF CHILDREN'S GYMS ACCORDING TO THE PRESIDENT'S COUNCIL ON PHYSICAL FITNESS SOME 40 OF YOUNGSTERS FIVE TO EIGHT YEARS OLD ARE OVERWEIGHT OR HAVE HIGH BLOOD PRESSURE OR HIGH CHOLESTEROL LEVELS WE SEE CARDIAC RISK FACTORS IN THIRDGRADERS SAYS JOHN CATES EXECUTIVE DIRECTOR OF THE CALIFORNIA GOVERNOR'S COUNCIL ON PHYSICAL FITNESS LONG HOURS INSIDE OFTEN IN FRONT OF THE TV OR A VIDEO GAME ARE PARTLY TO BLAME TOO MUCH JUNK FOOD AND CUTBACKS IN PHYSICALEDUCATION PROGRAMS AT SCHOOL ALSO PLAY A ROLE WHILE HEALTH BUFFS APPLAUD PARENTAL INTEREST IN GETTING CHILDREN MOVING AGAIN SOME WORRY THAT FITNESS MAY BECOME AN ELITIST THING WHERE WE HAVE A NATION OF HEALTHY RICH KIDS SAYS PHILLIP WIETHORN SPOKESMAN FOR THE PRESIDENT'S COUNCIL THERE IS ALSO CONCERN THAT PROGRAMS THAT FEATURE SELFDEFENSE SKILLS MAY INCREASE FEARS IN SOME CHILDREN RATHER THAN CALM THEM SAFETY CONCERNS HAVE GIVEN AN EXTRA BOOST TO THE PROGRAMS THAT FEATURE CHILDREN'S SELFDEFENSE SKILLS ALEMANY KARATE SCHOOL OF SAN FRANCISCO HAS A KIDNAP GAME ABOUT ONCE A MONTH AS PART OF ITS REGULAR CHILDREN'S MARTIALARTS PROGRAM THE INSTRUCTOR WEARS VARIOUS DISGUISES INCLUDING A MASK OF FREDDY KRUEGER THE HORROR MOVIE CHARACTER HE PRETENDS TO BE A STRANGER TRYING TO COAX A CHILD INTO A CAR IF HE GETS YOU WE SAY YOU'RE ON THE MILK CARTON SAYS COOWNER MARGARET ALEMANY WE HAVE TO MAKE IT A LITTLE BIT FRIGHTENING YOU HAVE TO MAKE THEM A LITTLE PARANOID SHE SAYS THAT A STUDENT RECENTLY AVOIDED AN ATTEMPTED ABDUCTION BY GIVING A MAN A SIDE KICK AND RUNNING SCREAMING FOR SEVERAL BLOCKS POLO INTERNATIONAL OF SAN RAFAEL CALIF OFFERS WORKSHOPS CALLED WARRIORS CHILDREN & STRANGERS THAT ARE DESIGNED TO EMPOWER CHILDREN BY FOSTERING COURAGE AND THE NATURAL PROTECTIVE WARRIOR SPIRIT INHERENT IN EVERYONE POLO SAYS IT STRESSES MENTAL AND VERBAL TACTICS MODEL MUGGINGS OF NORTHERN CALIFORNIA WHICH OFFERS ADULT SELFDEFENSE CLASSES HAS BEEN FEATURING CHILDREN'S PROGRAMS FOR THREE YEARS AND SEES AN INCREASING DEMAND OTHER KINDS OF PROGRAMS ARE GROWING TOO WE'LL DEFINITELY SEE MAJOR GROWTH IN THE KIDS' FITNESS AREA SAYS MR SEIBERT OF KIDSPORTS IN SINKING SPRING PA THE COMPANY RUNS 23 LICENSED FITNESS CENTERS FOR CHILDREN SIX MONTHS AND UP AND EXPECTS TO OPEN 15 MORE BY YEAR'S END IT IS ALSO EXPANDING ABROAD WITH CENTERS IN ENGLAND TAIWAN AND JAPAN THE PROPORTION OF HEALTH CLUBS OFFERING CHILDREN'S FITNESS PROGRAMS ROSE ABOUT 10 LAST YEAR TO 40 ACCORDING TO THE ASSOCIATION OF QUALITY CLUBS A TRADE GROUP THE YMCA OF GREATER NEW YORK LAST YEAR SERVED ABOUT 70000 CHILDREN AND TEENS UP FROM ABOUT 50000 IN 1990 AFTERSCHOOL CHILDCARE PROGRAMS AND SPORTS LEAGUES ARE STRESSING THE HEALTH AND FITNESS COMPONENT SAYS MICHAEL SPEZZANO YOUTH DEVELOPMENT EXECUTIVE PARENTS ARE FROM A VERY ACTIVE GENERATION HE ADDS THEY UNDERSTAND THE NEED LITTLE GYM INTERNATIONAL INC OF KIRKLAND WASH HAS 34 FRANCHISED CENTERS AND EXPECTS TO HAVE 100 OPENED BY THE END OF THE YEAR IT OFFERS WEEKLY HOURLONG CLASSES FOR KIDS FOUR MONTHS TO 12 YEARS OLD FOR ABOUT 40 A MONTH OUR GOAL IS NOT TO BUILD THE FUTURE OLYMPIC TEAM OF AMERICA SAYS SPOKESMAN BOB ZAFFARANO WE TEACH BALANCE RHYTHM AND MOTOR SKILLS THE COMPANY ALSO SELLS FITNESS TAPES FOR KIDS AND OFFERS A PRO SHOP THAT SELLS EXERCISE CLOTHES AND EQUIPMENT FOR CHILDREN DISCOVERY ZONE INC OF CHICAGO AND LEAPS AND BOUNDS A NEW VENTURE STARTED BY MCDONALD'S CORP FEATURE PROGRAMS FOR YOUNGER CHILDREN IN WHICH THEY CAN CLIMB AND JUMP ON A VARIETY OF PLAY EQUIPMENT WHILE THEIR PARENTS SUPERVISE AS PUBLIC PARKS BECOME LESS ATTRACTIVE FROM A SAFETY STANDPOINT PARENTS SEE THIS AS AN ALTERNATIVE SAYS DISCOVERY'S CHAIRMAN DONALD FLYNN CHILDREN'S SELFDEFENSE CLASSES ARE A VERY TELLING MOVEMENT SAYS JILL DUERR BERRICK DIRECTOR OF THE CHILD WELFARE RESEARCH CENTER AT THE UNIVERSITY OF CALIFORNIA BERKELEY THEY SHOW HOW HELPLESS PARENTS ARE FEELING ABOUT BEING ABLE TO PROTECT THEIR CHILDREN CHILDREN AT A RECENT SELFDEFENSE WORKSHOP CONDUCTED BY MR DEWART WERE TAUGHT THAT THEY HAVE TWO WEAPONS AGAINST AN ADULT THEIR HEADS AND THEIR VOICES THEN THEY PRACTICED HOLLERING HELP I DON'T KNOW YOU CALL 911 LATER THEY STOOD IN A CIRCLE PRACTICING KICKS AND YELLING NO ABOUT HALF THE CLASS CONSISTED OF A DISCUSSION OF SAFETY TIPS DON'T GIVE DIRECTIONS TO ADULTS LEARN YOUR ENTIRE PHONE NUMBER INCLUDING AREA CODE DON'T LET ANYONE TOUCH THE PARTS OF YOUR BODY THAT ARE COVERED BY YOUR BATHING SUIT WHEN YOU GO SWIMMING YOU HAVE THE RIGHT TO SAY NO TO AN ADULT HE TELLS THE CHILDREN NOBODY HAS THE RIGHT TO TOUCH YOU IN WAYS THAT MAKE YOU FEEL UNCOMFORTABLE THE TALK IS FOLLOWED BY DEMONSTRATIONS OF PHYSICAL TACTICS CHILDREN COULD USE TO THWART AN ABDUCTION WE HAVE TO GIVE CHILDREN SELFCONFIDENCE SAYS MR DEWART AND THE PERMISSION TO TAKE CARE OF THEMSELVES IT'S ACTUALLY PRETTY EASY SAYS JENNY A FIVEYEAROLD WEARING A MINNIE MOUSE SHIRT AND PINK PANTS IT'S PRETTY FUN BUT DOES SHE THINK SHE COULD DO ANY OF THESE MANEUVERS IF A STRANGER GRABBED HER YOU MEAN FOR REAL SHE ASKS AFTER A PAUSE SHE CONTINUES I THINK I COULD DO IT FOR REAL THEN I'D RUN HER MOTHER LAURA GOODRICHNEWMAN HAS ENROLLED FOUR CHILDREN IN SELFDEFENSE CLASSES AND TAKEN THEM HERSELF THE YOUNGER THE BETTER SHE SAYS YOU HAVE TO TEACH THEM HOW NOT TO GET VICTIMIZED JOHN DAVIS OF SAN FRANCISCO RECENTLY ENROLLED HIS SEVENYEAROLD DAUGHTER LAUREN IN A SELFDEFENSE COURSE HE CONCEDES THAT HE'S SKEPTICAL HIS DAUGHTER COULD ACTUALLY USE THE PHYSICAL TACTICS TAUGHT IN THE CLASS BUT HE SAYS HE WANTED HER TO LEARN YOU CAN REACT YOU CAN SCREAM YOU DON'T HAVE TO JUST TAKE THIS THERE ARE OTHER REASONS CHILDREN TAKE MARTIALARTS CLASSES OF COURSE WEST AMERICA KARATE SCHOOL IN AFFLUENT MARIN COUNTY CALIF SPECIALIZES IN CHILDREN'S CLASSES OWNER ROGER CARLON SAYS MANY PARENTS ENROLL THEIR KIDS FOR THE DISCIPLINE THE CLASSES OFFER PARENTS HERE ARE VERY BUSY HE SAYS CHILDREN WHO LACK ATTENTION CRAVE DISCIPLINE HE WILL ACCEPT STUDENTS AS SOON AS THEY ARE POTTYTRAINED AND CAN CONCENTRATE MANY PHYSICALEDUCATION EXPERTS STRESS THAT FITNESS PROGRAMS FOR CHILDREN DON'T HAVE TO BE ELABORATE OR COST MONEY TO BE EFFECTIVE THEY NEED TO BE CONSISTENT AND A GOOD EXAMPLE IS CRUCIAL SAYS MR WIETHORN OF THE PRESIDENT'S COUNCIL IT DEPENDS ON WHAT THE KIDS SEE DO PARENTS COME HOME FROM WORK AND GO TO THE PARK FOR A WALK OR KICK A SOCCER BALL AROUND OR DO THEY SIT IN FRONT OF THE TV AND READ THE PAPER 9304120002 930412 BUSINESS BRIEF FUJISAWA PHARMACEUTICAL CO DRUG FIRM RAISES ESTIMATE FOR ITS FISCAL 1993 PROFIT FUJISAWA PHARMACEUTICAL CO RAISED ITS PRETAX PROFIT ESTIMATE FOR THE YEAR ENDED MARCH 31 THE COMPANY EXPECTS TO REPORT CONSOLIDATED PRETAX PROFIT OF 12 BILLION YEN 10587 MILLION IT HAD FORECAST PRETAX PROFIT OF 7 BILLION YEN IN THE PREVIOUS YEAR ITS PRETAX PROFIT WAS 1353 BILLION YEN ITS SALES PREDICTION WAS RAISED SLIGHTLY TO 280 BILLION YEN FROM 278 BILLION YEN A BIT HIGHER THAN THE PREVIOUS YEAR'S 27731 BILLION YEN BRISK SALES OF DRUGS FOR USE IN HOSPITALS IN THE DOMESTIC MARKET IN THE SECOND HALF PUSHED UP PROFITS FUJISAWA SAID BUT THE COMPANY LOWERED ITS UNCONSOLIDATED OR PARENTONLY NET PROFIT FORECAST AS IT PLANS TO REPORT 65 BILLION YEN OF EXTRAORDINARY LOSSES TO COVER LOSSES AT ITS US SUBSIDIARY FUJISAWA USA INC WHICH HAS HAD SLUGGISH SALES 9304120001 930412 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 1/2 LOW 3 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 119 DAYS 308 120 TO TO 149 DAYS 310 150 TO 179 DAYS 313 180 TO 239 DAYS 315 240 TO 270 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 281 SIX MONTHS 296 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 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 WEDNESDAY APRIL 7 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 292 13 WEEKS 304 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 725 60 DAYS 732 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 725 60 DAYS 735 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC 9304120104 930317 TRADE WARRIORS BABYBOOMERS TOY WITH MATCHES BY ROBERT L BARTLEY THE UNITED STATES ENTERED THE 20TH CENTURY AN ADOLESCENT GIANT IN THE 1920S AND 1930S CLUMSY AND UNSURE OF ITS BUDDING POWERS BUT BY THE 1940S IT HAD DEVELOPED A REMARKABLE GENERATION OF LEADERS THAT ACCOMPLISHED THREE HISTORIC FEATS UNCONDITIONAL SURRENDER OF THE NAZIS AN ULTIMATELY SUCCESSFUL PLAN TO DEFEAT COMMUNIST TOTALITARIANISM THROUGH CONTAINMENT AND OUT OF THE GLOOM OF DEPRESSION AND ASHES OF WAR AN ERA OF WORLD PROSPERITY AND DEVELOPMENT THE ECONOMIC FOUNDATION WAS QUITE DELIBERATELY LAID IN 1944 AT THE MOUNT WASHINGTON HOTEL IN BRETTON WOODS NH THE VISION OF AN OPEN WORLD TRADING ORDER WAS COMPLETED WITH THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN 1947 AND THE EUROPEAN PAYMENTS UNION IN 1950 THE BRETTON WOODS YEARS FROM 1950 TO 1973 COUNTED THIS CENTURY'S MOST FABULOUS GENERATION OF PROSPERITY GROWTH RATES IN BOTH DEVELOPED AND DEVELOPING NATIONS WERE ALMOST TWICE WHAT CAME BEFORE AND AFTER THE ARCHITECTS OF BRETTON WOODS CAREFULLY BUILT ON THE GREAT LESSON OF THE 1930S THAT THE WORLD ECONOMY WAS A COMPLEX AND TIGHTLY INTEGRATED MACHINE THE GREAT DEPRESSION THROUGH WHICH THEY HAD LIVED WAS FIRST AND FOREMOST A COLLAPSE OF INTERNATIONAL TRADE EACH NATION TRIED TO SEAL ITSELF OFF BEHIND PROTECTIVE TARIFFS AND BEGGAR THY NEIGHBOR CURRENCY DEVALUATIONS BUT THEY LEARNED THAT NO NATION COULD PROSPER ON ITS OWN THE 1929 DEPRESSION WAS SO WIDE SO DEEP AND SO LONG CHARLES P KINDLEBERGER WROTE IN HIS INSIGHTFUL HISTORY BECAUSE BRITAIN WAS NO LONGER ABLE AND THE US NOT YET WILLING TO ASSUME INTERNATIONAL ECONOMIC LEADERSHIP IN THE BRETTON WOODS YEARS THE US ASSUMED THE ROLE OF MAINTAINING OPEN MARKETS AND LENDING WHEN NECESSARY ITS ELITES FELT THE OBLIGATION OF LEADERSHIP AND MAINTAINED AN UNBROKEN CONSENSUS THAT PROTECTIONISM WAS EVIL AND FREE TRADE AN OVERRIDING OBJECTIVE UNHAPPILY OUR ELITES NEVER QUITE UNDERSTOOD THAT THEY WERE ALSO RUNNING A WORLD CURRENCY LONGTIME VETERANS OF FEDERAL RESERVE DELIBERATIONS REPORT INTERNATIONAL CONSIDERATIONS WERE ALWAYS PERIPHERAL WHETHER THROUGH HUMAN ERROR OR AN IMPERFECT SYSTEM THEY HAD CLEARLY STUMBLED BY 1971 WHEN RICHARD NIXON AND JOHN CONNALLY CLOSED THE GOLD WINDOW A GREAT WORLD INFLATION WAS COMING PREDICTED EVEN BEFORE THE OIL SHOCKS BY THE BEST INTERNATIONAL ECONOMISTS NOTABLY ROBERT TRIFFIN GROWTH SLOWED AFTER THE MONETARY SYSTEM DISSOLVED IN 1973 BUT AT LEAST THE CONSENSUS HELD ON OPEN TRADE PROTECTIONIST SENTIMENTS AROSE ANEW IN NO SMALL PART BECAUSE OF THE PERTURBATIONS OF FLOATING EXCHANGE RATES BUT WERE HELD AT BAY THE ELITES REMEMBERED THAT PRESIDENT HOOVER HAD SIGNED THE INFAMOUS TARIFF OVER THE OBJECTION OF A PETITION FROM 1028 ECONOMISTS IN 1985 RONALD REAGAN PROMISED TO GO TO BATTLE IF THE GHOST OF SMOOTHAWLEY REARS ITS UGLY HEAD IN CONGRESS I WROTE THAT WE ARE SINGULARLY LUCKY TO HAVE AN OLD AND EXPERIENCED PRESIDENT WHO LIVED THROUGH IT THE LAST TIME GEORGE BUSH WAS THE LAST WORLD WAR II PRESIDENT WHILE BILL CLINTON LEADS THE FIRST BABYBOOM ADMINISTRATION WHAT DOES THIS NEW GENERATION REALLY BELIEVE IN IF ANYTHING DOES IT BEGIN TO UNDERSTAND THE LESSONS OF INTERNATIONAL TRADE THE OLD GENERATION HAD SO PAINFULLY LEARNED FOR WITH HITLER AND COMMUNISM BOTH BEHIND US THE BIG POTENTIAL FOR CATASTROPHIC REVERSAL LIES IN A 1930STYLE COLLAPSE OF THE TRADING ORDER THE CLINTON ADMINISTRATION COUPLES A RHETORICAL COMMITMENT TO FREE TRADE WITH THREATS OF PROTECTIONIST RETALIATION INTENDED AS FAVORS TO DOMESTIC CONSTITUENCIES THIS IS PRECISELY THE PROCESS THAT GOT OUT OF HAND WITH SMOOTHAWLEY THE ISSUE IS WHETHER THIS SHALLOW COMMITMENT WILL PROVE ADEQUATE TO TODAY'S CHALLENGE THE WORLD ECONOMY CURRENTLY SUFFERS A BRAND OF CONFUSION NOT SEEN SINCE THE 1920S AND 1930S THE THEME OF THE DAY IS ASSET DEFLATION AS THE US JAPAN AND EUROPE DIP INTO RECESSION THE FLOW OF OUTPUT SLOWS ONLY MODERATELY BUT THIS FAMILIAR PHENOMENON IS COUPLED WITH SOMETHING WE HAVEN'T RECENTLY SEEN A COLLAPSE IN THE MARKET VALUE OF ACCUMULATED WEALTH SUCH AS REAL ESTATE AND OTHER FIXED ASSETS WE MAY NOT KNOW EXACTLY WHAT THIS PORTENDS BUT SURELY IT SPELLS WORLD ECONOMIC VULNERABILITY IN THIS FLAMMABLE ENVIRONMENT BABYBOOMERS HAD BEST UNDERSTAND WHEN THEY'RE PLAYING WITH MATCHES DEMANDS FOR SIDE DEALS ON NORTH AMERICAN FREE TRADE THREATS OF RETALIATION AGAINST ALLEGED EUROPEAN CONTRACTRIGGING CLAIMS FOR SET SHARES OF THE JAPANESE MICROCHIP MARKET THESE MAY BE FINE AS NEGOTIATING PLOYS AND DOMESTIC GRANDSTANDING BUT A TIME DOES ARRIVE FOR AMERICAN LEADERSHIP AND A TRADE WAR IS THE LAST THING THE WORLD CAN AFFORD WE CAN ONLY HOPE THAT THE NEW GENERATION HAS SOME GRASP OF THE MISTAKES OF THE PAST THAT ITS VIEW OF HISTORY DOESN'T START WITH 1968 MR BARTLEY IS EDITOR OF THE JOURNAL SEE RELATED LETTER LETTERS TO THE EDITOR CLINTON'S WHIZ KIDS MAYBE NOT SO SMART WSJ APRIL 9 1993 9303170093 9304120102 930317 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB IN THE FABLED ST VALENTINE'S DAY MASSACRE OF 1929 SEVEN GANGSTERS WERE KILLED BY OTHER GANGSTERS THE NATION WAS SHOCKED THE CONSTITUTION EVENTUALLY WAS AMENDED PROHIBITION ENDED AND TWO ENTRIES WERE MADE IN THE WORLD BOOK ENCYCLOPEDIA THERE WAS ANOTHER VALENTINE'S DAY MASSACRE IN NEW YORK CITY THIS YEAR SIX PEOPLE WERE EXECUTED GANGLANDSTYLE THERE WAS NO NATIONAL OUTCRY THE STORY DIDN'T LEAD THE NEWS ENCYCLOPEDIA ENTRIES ARE UNLIKELY SEN DANIEL PATRICK MOYNIHAN NOTES THE DISPARITY TO ILLUSTRATE A CHILLING PHENOMENON THERE HAS BEEN A BREAKDOWN IN SOCIAL ORDER IN THE US SO WIDESPREAD THAT MANY AMERICANS HAVE SIMPLY GROWN NUMB TO IT THE DISINTEGRATION OF THE FAMILY IS AT THE HEART OF THE PROBLEM HE BELIEVES AND THERE ARE LIMITS TO WHAT GOVERNMENT PROGRAMS CAN DO ABOUT IT IT ISN'T JUST SEN MOYNIHAN SOUNDING THE ALARM FROM THEIR WIDELY DIVERGENT PERSPECTIVES WILLIAM GALSTON AN ASSISTANT TO PRESIDENT CLINTON AND WILLIAM BENNETT A CONSERVATIVE VETERAN OF THE REAGAN AND BUSH ADMINISTRATIONS HAVE RECENTLY REACHED STRIKINGLY SIMILAR CONCLUSIONS ABOUT THE DECLINE IN THE US SOCIAL ORDER THIS TROUBLING PICTURE MAKES IT CLEAR THAT THE OFTDEBATED SOCIAL ISSUES ABORTION RIGHTS SCHOOL PRAYER GAY RIGHTS AND MURPHY BROWN PLOT LINES MISS THE WIDER CALAMITIES OF LIFE IN THE US TODAY THE POWERFUL NEW WRITINGS OF MESSRS MOYNIHAN GALSTON AND BENNETT ARE STARTING TO CAUSE RIPPLES INSIDE WASHINGTON AND IN TIME ARE LIKELY TO TRANSFORM THE STANDARD LIBERALCONSERVATIVE DEBATE OVER SOCIAL POLICY COLD STATISTICS THEY CITE GIVE THE ESSENCE OF THE STORY IN THE PAST THREE DECADES THE PERCENTAGE OF CHILDREN BORN OUTSIDE OF MARRIAGE HAS RISEN FIVEFOLD FROM 5 TO 25 TODAY A STUNNING 63 OF BLACK CHILDREN ARE BORN OUT OF WEDLOCK AT THE SAME TIME THE DIVORCE RATE HAS TRIPLED THE NET RESULT IS THAT ALMOST A THIRD OF US FAMILIES WITH CHILDREN NOW ARE ONEPARENT HOUSEHOLDS AND A LOT OF THESE CHILDREN GROW UP POOR THE POVERTY RATE AMONG FEMALEHEADED FAMILIES WAS NEARLY 45 IN 1988 MORE THAN SIX TIMES HIGHER THAN IN MARRIEDCOUPLE FAMILIES DEADBEAT DADS ARE A BIG REASON ONE CENSUS BUREAU REPORT SHOWED THAT ONLY HALF THE MOTHERS ENTITLED TO CHILD SUPPORT PAYMENTS GOT WHAT THEY WERE OWED A QUARTER GOT PARTIAL PAYMENTS AND A QUARTER GOT NOTHING AT ALL MR BENNETT THIS WEEK TRIED TO ILLUMINATE THESE WOES FURTHER BY PUBLISHING WHAT HE CALLS AN INDEX OF LEADING CULTURAL INDICATORS HIS INDEX TRACKS 19 DIFFERENT SOCIAL INDICATORS FROM CRIMES COMMITTED TO CHILD ABUSE DURING THE PAST 30 YEARS HE FOUND A 560 INCREASE IN VIOLENT CRIME A JUMP OF MORE THAN 200 IN THE TEENAGE SUICIDE RATE AN 80POINT DROP IN SAT SCORES BUT IT IS SEN MOYNIHAN WHO PUTS SUCH STATISTICS INTO A HUMAN CONTEXT A QUARTERCENTURY AGO MR MOYNIHAN WARNED THAT A LARGE INCREASE IN SINGLEPARENT FAMILIES WAS COMING BUT FOUND LITTLE SUPPORT FOR HIS SHOCKING FORECAST NOW OF COURSE HE IS VINDICATED AND IN AN OBSCURE SCHOLARLY ARTICLE THAT IS FAST BECOMING A CULT CLASSIC IN THE SENATE HE NOW ARGUES THAT DEVIANT BEHAVIOR HAS BECOME SO COMMON THAT SOCIETY HAS CHOSEN TO STOP RECOGNIZING IT AS SUCH AND INSTEAD HAS REDEFINED ITS STANDARDS SEN MOYNIHAN SAYS THIS OCCURRED TO HIM ONE DAY LAST SUMMER WHEN HE FOUND BURIED IN THE BACK PAGES OF A NEWSPAPER A STORY RECOUNTING THE DISCOVERY OF THREE PEOPLE SHOT THROUGH THE HEAD IN A BRONX APARTMENT AND THE DEHYDRATED BABY OF ONE VICTIM STUFFED UNDER A BED IT WAS ABOVE ALL THE ROUTINE TREATMENT OF THIS DRUGRELATED SLAUGHTER THAT MOST SHOCKED HIM THE GOOD NEWS IS THAT A ROUGH CONSENSUS IS EMERGING ACROSS IDEOLOGICAL LINES ABOUT THE NATURE OF THE PROBLEM DISPUTES ABOUT SOLUTIONS PERSIST OF COURSE CONSERVATIVES LIKE TO PREACH ABOUT FAMILY STRUCTURE WHILE IGNORING THE ECONOMIC CAUSES OF SOCIAL PROBLEMS PRODUCING THE SANCTIMONIOUS FAMILY VALUES RHETORIC OF LAST YEAR'S REPUBLICAN CONVENTION LIBERALS LIKE TO TALK ABOUT ECONOMIC CAUSES WHILE IGNORING FAMILY STRUCTURE AS MR GALSTON ARGUED IN AN ARTICLE HE COWROTE JUST BEFORE TAKING HIS WHITE HOUSE JOB A PROGRESSIVE FAMILY POLICY MUST ADDRESS THESE PROBLEMS SIMULTANEOUSLY WITH PROGRAMS THAT BOTH INCREASE THE RESOURCES AVAILABLE TO PARENTS AND IMPROVE THE CHANCES THAT CHILDREN WILL GROW UP IN STABLE INTACT FAMILIES SOME AGREEMENT IS EMERGING ON POLICIES TO HELP REVISING WELFARE TO ELIMINATE PENALTIES FOR GETTING MARRIED OR GOING TO WORK INCREASING THE EARNED INCOME TAX CREDIT TO KEEP MONEY IN THE HANDS OF WORKING PARENTS RAISING THE TAX EXEMPTION FOR CHILDREN PRESIDENT CLINTON ENDORSES SOME OF THESE IDEAS BUT AS A SKILLFUL COMMUNICATOR HE HAS ANOTHER ROLE TO PLAY PRESIDENTS HAVE USED THEIR BULLY PULPIT BEFORE TO CHANGE ATTITUDES IT MAY BE TIME TO USE IT TO RALLY PEOPLE TO STOP THE BREAKDOWN OF FAMILIES SEE RELATED LETTER LETTERS TO THE EDITOR IT'S EVEN WORSE WSJ APRIL 9 1993 9303170090 9304120034 930319 THE AMERICAS THE WAR WAS THE REAL CRIME IN EL SALVADOR BY MAX SINGER THE UNITED NATION'S TRUTH COMMISSION HAS REPORTED THAT EL SALVADOR'S MILITARY LEADERS WERE INDEED INVOLVED IN DASTARDLY MURDERS OF PRIESTS AND VILLAGERS AND OTHER INNOCENTS DURING THE LONG BLOODY WAR IN EL SALVADOR BUT THE ATTENTION PAID TO THESE CRIMES CONTINUES TO DIVERT ATTENTION FROM THE BIGGEST CRIME THE WAR ITSELF WITH ALL THE DEBATE ABOUT EL SALVADOR IN THE PAST DOZEN YEARS THERE HAS BEEN NO DISCUSSION OF WHETHER THE MARXIST GUERRILLA COALITION THE FMLN WAS JUSTIFIED IN STARTING A WAR THAT CAUSED THE DEATH OF TENS OF THOUSANDS AND IMMENSE AGONY TO THE WHOLE SOCIETY AMERICANS WHO HAVE SUPPORTED ANTIWAR MOVEMENTS SHOULD HAVE NO DOUBT THAT STARTING AN UNPOPULAR WAR WITHOUT REGARD FOR THE LIVES OF ORDINARY PEOPLE WOULD BE AN IMMENSELY WORSE CRIME THAN ANY THAT EL SALVADOR'S OFFICERS HAVE BEEN ACCUSED OF INDEED NONE OF THE CRIMES THAT THE TRUTH COMMISSION INVESTIGATED WOULD HAVE BEEN COMMITTED IF THE FMLN HAD NOT STARTED THE WAR THIS OF COURSE DOES NOT EXCUSE THOSE WHO COMMITTED WAR CRIMES THE WAR IS OFTEN THOUGHT TO HAVE STARTED AS A REVOLUTION AGAINST THE DICTATORSHIP OF THE INFAMOUS OLIGARCHYARMY ALLIANCE BUT THIS IS NOT WHAT HAPPENED THE OLD REGIME IN EL SALVADOR WAS OVERTHROWN BY YOUNGER ARMY OFFICERS WHO ESTABLISHED A REVOLUTIONARY GOVERNING JUNTA JRG WITH RADICAL CIVILIAN PARTNERS ON OCT 15 1979 NEARLY A YEAR LATER THE WAR STARTED WHEN THE FMLN ATTACKED THE JRG ON MARCH 6 1980 THE ARMY HAD INITIATED A MAJOR LAND REFORM BY SEIZING THE 50 LARGEST PLANTATIONS IN THE COUNTRY AND ON APRIL 28 ANOTHER BROADER LAND REFORM WAS ENACTED BY THE JUNTA THE JRG SAID THAT IT WAS GOVERNING ONLY UNTIL THERE COULD BE A NEW CONSTITUTION AND FREE ELECTIONS AND IN FACT AFTER THEY ENACTED AND BEGAN TO IMPLEMENT THE LAND REFORM FREE ELECTIONS WERE HELD AS PROMISED FIRST FOR A CONSTITUENT ASSEMBLY AND THEN FOR PRESIDENT AND THEN FOR A LEGISLATURE SO WHILE IT IS TRUE THAT THE FMLN WAS NOT ATTACKING AN ELECTED GOVERNMENT IT WAS ATTACKING A REFORMIST GOVERNMENT THAT HAD COMMITTED ITSELF TO FREE ELECTIONS A GOVERNMENT THAT INCLUDED AS A PARTNER THE FORMER MAJOR OPPOSITION PARTY AND ONE THAT IN FACT FULFILLED ITS COMMITMENT TO FREE ELECTIONS SHORTLY AFTERWARD WAS THE FMLN A POPULAR MOVEMENT ORIGINALLY NAMED THE UNIFIED REVOLUTIONARY DIRECTORATE DRU THE FMLN WAS AN ALPHABET SOUP OF SALVADORAN REVOLUTIONARY GROUPS FPL ERP FARN PCES SEVERAL OF WHICH HAD SOME POPULAR SUPPORT DEMONSTRATED BY THEIR ABILITY TO ORGANIZE MASS PROTESTS IN SAN SALVADOR BUT BY MAY 1980 WHEN THE DRU/FMLN WAS FORMED AS A RESULT OF PRESSURE FROM FIDEL CASTRO AT THREE MEETINGS IN CUBA THESE GROUPS WERE NO LONGER POPULAR AFTER THE SALVADORAN PEOPLE HAD SEEN THE ARMY SEIZE THE PLANTATIONS OF THE OLIGARCHIC FAMILIES THERE WAS NO POPULAR SUPPORT FOR A NEW REVOLUTION WHEN THE FMLN STARTED THE WAR IN THE SUMMER OF 1980 IT WAS A MIDDLE AND UPPERCLASS GROUP WITH VERY SMALL PEASANT OR POPULAR SUPPORT EXCEPT IN SOME OF THE LIGHTLY POPULATED NORTHEASTERN AREAS OF EL SALVADOR THE PUBLIC DID NOT RESPOND TO EITHER ITS CALL FOR A NATIONAL STRIKE IN OCTOBER 1980 OR TO ITS CALL FOR A GENERAL INSURRECTION IN JANUARY 1981 NEVERTHELESS THE EXTENSIVE SUPPORT THAT THE FMLN RECEIVED FROM CUBA AND THE SOVIET BLOC ALLOWED IT TO KEEP THE BLOODY WAR GOING FOR NEARLY 11 YEARS AFTER THE DEFEAT OF ITS 1981 FINAL OFFENSIVE THE FMLN ALSO BENEFITED FROM THE INCOMPETENCE OF THE SALVADORAN ARMY AND ITS US ADVISERS STRANGELY ENOUGH THERE WAS A REAL TEST OF THE FMLN'S POPULAR SUPPORT IN 1982 WHEN THE WAR WAS ONLY A YEAR AND A HALF OLD THE GOVERNING JUNTA CALLED AN ELECTION TO CREATE A CONSTITUENT ASSEMBLY SIX PARTIES INCLUDING MOST OF THE OLD CHRISTIAN DEMOCRATIC PARTY LED BY NAPOLEON DUARTE COMPETED IN THIS ELECTION WHICH WAS OPEN TO NEW PARTIES AS WELL AND TWO PREEXISTING PARTIES CONNECTED TO THE FMLN WERE AUTOMATICALLY ELIGIBLE TO PARTICIPATE THE FMLN DENOUNCED THE ELECTION AND CALLED ON ALL ITS SUPPORTERS AND SYMPATHIZERS TO BOYCOTT IT IT ALSO THREATENED TO KILL ANYONE WHO VOTED IT ATTACKED SOME OF THE POLLING PLACES BLEW UP HUNDREDS OF BUSES TO PREVENT VOTERS FROM GOING TO THE POLLS AND OTHERWISE DID ITS BEST TO PREVENT THE ELECTION FROM SUCCEEDING AS A RESULT THE MARCH 28 1982 ELECTION BECAME IN EFFECT A REFERENDUM IN WHICH THE SALVADORAN PEOPLE HAD A CHANCE TO CHOOSE BETWEEN THE FMLN AND THE JRG FMLN SUPPORTERS EITHER STAYED AWAY FROM THE POLLS OR CAST A BLANK OR INVALID BALLOT THE SECRECY OF WHICH WAS EFFECTIVELY PROTECTED JRG SUPPORTERS CAME TO THE POLLS SOME AT GREAT EFFORT AND RISK AND CAST A BALLOT FOR ONE OF THE SIX COMPETING PARTIES IT WASN'T EVEN CLOSE THE JRG BEAT THE FMLN AT LEAST 80 TO 20 16 MILLION VALID VOTES TO 04 MILLION DELIBERATELY SPOILED BALLOTS AND PROTEST ABSTENTIONS BUT THE FMLN DIDN'T CARE WHAT THE PEOPLE WANTED AFTER THE MID80S WHEN THE SALVADORAN ARMY HAD BEEN EXPANDED AND TRAINED THE FMLN'S MAIN HOPE OF VICTORY WAS TO PERSUADE THE US CONGRESS TO CUT OFF AID TO EL SALVADOR WITH THIS HOPE IT KEPT THE WAR GOING FOR AN ADDITIONAL SIX OR SO YEARS UNTIL AFTER THE SOVIET COLLAPSE THE FMLN CONTINUED THE WAR KILLING AND DESTROYING UNTIL IT FINALLY ACCEPTED A FACESAVING FORM OF DEFEAT THAT IT COULD HAVE HAD YEARS EARLIER THE CRIME THAT LED TO LAST WEEK'S RESIGNATION OF GEN RENE EMILIO PONCE THE MURDER OF SEVERAL JESUITS AND WITNESSES IN 1989 CAME DURING THE FMLN'S HOPELESS ATTACK AGAINST THE CITY OF SAN SALVADOR BY THEN THERE HAD BEEN FOUR NATIONAL ELECTIONS ALL OBVIOUSLY FREE ALL OBVIOUSLY POPULAR ALL CONDUCTED AGAINST THE OPPOSITION OF THE FMLN THE ATTACK AGAINST SAN SALVADOR MADE NO EFFORT TO AVOID CIVILIAN CASUALTIES AND IT INEVITABLY RESULTED IN HUNDREDS OF INNOCENT PEOPLE BEING KILLED IT NEVER HAD ANY CHANCE OF MILITARY SUCCESS AND THE FMLN LEADERS WHO ORDERED THE ATTACK HAD NO REASON TO THINK THAT IT COULD PRODUCE ANY MILITARY BENEFIT THE CIVILIAN DEATHS WERE THE RESULT OF THE FMLN'S DESIRE TO MAKE POLITICAL GAINS PARTICULARLY IN THE US AND WHEN THE SOLDIERS KILLED THE JESUITS AND THE WITNESSES THE FMLN SUCCEEDED IN THE US ALL ATTENTION TURNED TO THE MURDER OF THE JESUITS AND NO ONE ASKED WHO WAS RESPONSIBLE FOR THE DEATHS OF THE HUNDREDS OF INNOCENT CIVILIANS KILLED IN A HOPELESS ATTACK BY A DEFEATED FORCE AFTER NINE YEARS OF UNPOPULAR WAR AGAINST AN ELECTED GOVERNMENT MR SINGER FIRST VISITED EL SALVADOR TO REPORT ON THE ARMY'S REVOLUTION IN NOVEMBER 1981 AND WAS A FREQUENT ELECTION OBSERVER THERE HIS BOOK THE REAL WORLD ORDER ZONES OF PEACE ZONES OF TURMOIL CHATHAM HOUSE IS TO BE PUBLISHED THIS SPRING SEE RELATED LETTERS LETTERS TO THE EDITOR REPRESSION CAUSED SALVADOR'S WAR WSJ APRIL 9 1993 9303190108 9304120032 930319 MEDICINE EVEN BEFORE CLINTON REFORM DOCTORS SAY THEY FEEL PINCH OF GROWING COMPETITION BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH IT MAY BE 6 PM ON A SNOWY EVENING BUT THE OPHTHALMOLOGY PRACTICE OF EDWARD KONDROT AND RICHARD STOUT IS JUST GETTING DOWN TO BUSINESS WITH A NEWSPAPER AD PROMISING A FREE SEMINAR THE DOCTORS HAVE LURED 20 MYOPIC FOLK TO THEIR OFFICES HERE FOR CHEESE AND CRACKERS A SLIDE SHOW AND A SALES PITCH FOR A 2400 ELECTIVE EYE OPERATION FOR NEARSIGHTEDNESS THE PRESENTATION INCLUDES A SATISFIED CUSTOMER AND FREE SCREENINGS FOR PROSPECTIVE PATIENTS I'M VERY INTERESTED SAYS KATHLEEN BUCKLEY BEAMING BEHIND HER THICK LENSES AFTER EMERGING FROM THE SCREENING I LIKED THE PRESENTATION SQUEEZED BY HIGHER COSTS AND DECLINING REIMBURSEMENTS FROM MEDICARE AND PRIVATE INSURERS NOT TO MENTION THE LOOMING THREAT OF PRESIDENT CLINTON'S HEALTHCARE REFORM DOCTORS FIND THEMSELVES IN UNFAMILIAR AND OFTEN BITTER COMPETITION THE STRIFE IS PARTICULARLY INTENSE FOR DOCTORS IN CROWDED SPECIALTIES IN METROPOLITAN AREAS THE COMPETITION IS FIERCE SAYS DR STOUT THERE ARE A LOT OF PEOPLE COMPETING OVER A SHRINKING PIECE OF PIE DOCTORS' COSTS AS A PROPORTION OF REVENUE HAVE RISEN BY NEARLY 50 OVER FIVE YEARS ACCORDING TO CEJKA & CO A ST LOUIS CONSULTING FIRM AT THE SAME TIME COMPETITION FROM HEALTH MAINTENANCE ORGANIZATIONS IS DRIVING BILLING RATES DOWN AND DOCTORS ARE RECEIVING ONLY ABOUT 70 OR 80 OF THE AMOUNT THEY BILL BECAUSE OF DECLINING GOVERNMENT REIMBURSEMENTS AND DEADBEATS MEANWHILE THE AMERICAN MEDICAL ASSOCIATION SAYS DOCTORS' HOURS HAVE INCREASED IN EACH OF THE LAST FIVE YEARS TO 591 A WEEK IN 1991 AS A RESULT PHYSICIANS ARE FORCED TO SELL THEMSELVES TO MAINTAIN THEIR INCOMES SOME DOCTORS OFFER PATIENTS RIDES TO THE OFFICE SELL EYEGLASSES OR COSMETICS AND SCOUR SHOPPING CENTERS AND HIGHRISE BUILDINGS FOR NEW BUSINESS OTHERS GIVE FREE TALKS BICKER OVER PATIENTS AND DELAY OFFICE IMPROVEMENTS AND STAFF EXPANSIONS SIGNS OF LEAN TIMES FOR DOCTORS ARE EMERGING AROUND THE COUNTRY THE MEDICAL CLINIC OF SACRAMENTO IN CALIFORNIA FOR EXAMPLE PLANS TO CUT ITS DOCTORS' BASE PAY BY 20 ALLOWING THEM TO EARN EXTRA PAY THROUGH INCENTIVES FOR EFFICIENT BEHAVIOR THE DAYS OF SUPER INCOMES ARE OVER SAYS MICHAEL YOUSSI MEDICAL DIRECTOR IN DETROIT KRISHNA SAWHNEY A VASCULAR SURGEON AND HIS COLLEAGUES CLOSED THEIR PRIVATE PRACTICE AND JOINED A BIG HEALTH SYSTEM BECAUSE DESPITE A 15 SALARY CUT THEY COULDN'T COPE WITH THE LIABILITY INSURANCE AND THE LOSS OF PATIENTS TO HMOS AND IN AKRON OHIO INTERNIST BOB NORMAN SAYS HIS INCOME HAS DROPPED 5000 A YEAR TO 68000 LAST YEAR DESPITE 12HOUR DAYS HE CANCELED HIS VACATION AND DOESN'T HAVE ENOUGH MONEY TO FIX HIS LEAKY ROOF THIS IS NOT A MONEYMAKING BUSINESS HE SAYS DOCTORS AREN'T EXACTLY IN THE POOR HOUSE JUST YET THEIR AVERAGE INCOME CONTINUES TO RISE ACCORDING TO THE AMA TO 170600 IN 1991 A LOT OF PEOPLE COMPLAIN BUT I WORK HARD AND FEEL I'M REMUNERATED WELL SAYS MICHAEL MCGONIGAL A FAMILY PRACTITIONER WHOSE INCOME HAS RISEN STEADILY SINCE HE BEGAN HIS PRACTICE IN 1984 BUT THE AVERAGE INCOME FIGURES ARE DISTORTED BY OLDER DOCTORS AND THOSE IN LUCRATIVE SPECIALTIES MANY DOCTORS FACE FLAT OR FALLING INCOMES AND NEARLY ALL SAYS CAROL MCCLAIN A PITTSBURGH MEDICAL CONSULTANT WHO RUNS PROFESSIONAL BUSINESS CENTS ARE VERY NERVOUS ONE ORTHOPEDIST WHOM SHE DECLINES TO IDENTIFY IS GIVING UP HIS LEASED PORSCHE ANOTHER DOCTOR IS THINKING OF ABANDONING HIS EUROPEAN VACATIONS IT WILL CHANGE THEIR LIFESTYLE GUARANTEED SHE SAYS THIS REALIZATION HAS MADE THE ONCE GENTLEMANLY PROFESSION TENSE JOHN MARTELL JR A YOUNG ORTHOPEDIC SURGEON QUIT HIS JOB IN A PRIVATE PRACTICE BECAUSE THE OTHER MORE SENIOR DOCTOR HOARDED PATIENTS HE JUST WASN'T WILLING TO CUT BACK ON THE VOLUME OF PATIENTS SAYS DR MARTELL HE SAW 30 OR 40 A DAY THERE WERE DAYS I'D BE LUCKY TO SEE FIVE TO DRUM UP BUSINESS DR MARTELL GAVE LECTURES TO LOCAL HIGH SCHOOL TEAMS AND LITTLE LEAGUE COACHES DR MARTELL AND OTHER DOCTORS SAY THEY'VE HEARD OF PHYSICIANS BRIBING RECEPTIONISTS TO STEER PATIENTS AWAY FROM THEIR PARTNERS YOUNG DOCTORS FEEL A DISTRUST AMONG COLLEAGUES THAT WASN'T TAUGHT IN ANATOMY CLASS MARK SILVERMAN A 36YEAROLD INTERNIST SPECIALIZING IN ENDOCRINOLOGY COMPLAINS THAT GENERAL PRACTITIONERS WON'T REFER PATIENTS TO HIM BECAUSE THEY FEAR LOSING THEM FOREVER THEY'LL DISCUSS THE CASES WITH ME BUT THEY WON'T SEND THE PATIENT HE SAYS DERMATOLOGIST IRA COHEN SAYS HIS PATIENTS ARE STRETCHING OUT SKINCANCER CHECKUPS TO A YEAR INSTEAD OF EVERY SIX MONTHS WHILE ACNE PATIENTS TRY TO RENEW THEIR PRESCRIPTIONS OVER THE PHONE AT THE SAME TIME RIVAL DERMATOLOGISTS ARE OFFERING THEIR OWN LINES OF COSMETICS AND PLACING BROCHURES IN BARBERSHOPS AND DRUGSTORES HE HAS ALSO OBSERVED DOCTORS AT COCKTAIL PARTIES TRYING TO DISCREDIT RIVALS EVEN DOCTORS WHO HAVE NO PROBLEM FILLING THEIR PATIENT CALENDARS FIND THEMSELVES IN A BIND OBSTETRICIAN JOHN MORACA SAYS HE ACTUALLY RECEIVES ONLY 63 OF THE AMOUNT HE BILLS AND BECAUSE OF MALPRACTICE INSURANCE AND THE LIKE HIS OVERHEAD IS 50 OF REVENUE AS A RESULT HIS PRACTICE DIDN'T REPLACE THE TWO OFFICE WORKERS WHO LEFT IN THE LAST YEAR EVEN THOUGH THE VOLUME OF WORK IS THE SAME PLANS TO REPLACE AGING COMPUTERS ALSO HAVE BEEN PUT OFF EVERYONE HAS BECOME MORE CAUTIOUS HE SAYS WHEN CARL CULIG AN INTERNIST OPENED HIS PRACTICE NINE YEARS AGO I HAD HOPES OF BUILDING MY OWN PRACTICE AND BEING VERY SUCCESSFUL AND HAVING THREE OR FOUR PEOPLE WORKING FOR ME HE SAYS IT DIDN'T HAPPEN HE FOUND HIMSELF AT THE LOSING END OF A BATTLE WITH LOWCOST HMOS AND OTHER PRIVATEPRACTICE DOCTORS DR CULIG CLOSED HIS PRACTICE LAST YEAR TO TAKE A JOB WITH AN HMO WHICH PAYS HIM A SALARY THOUGH HE LIVES COMFORTABLY IT'S NOT A LIFESTYLE IN WHICH YOU CAN AFFORD TO BUY A BIG MERCEDES OR A 300000 HOUSE HE SAYS HIS HOUSE COST UNDER 150000 AND HE AND HIS WIFE DRIVE A 1988 SUBARU AND A 1984 CHEVY WAGON IN A CROWDED FIELD LIKE OPHTHALMOLOGY IN PITTSBURGH THE COMPETITION IS DOWNRIGHT FIERCE SOME DOCTORS NOW BUY FLOWERS FOR THEIR PATIENTS AFTER SURGERY AND DOUGHNUTS FOR THE FAMILY SOME ACCEPT CREDIT CARDS ONE DOCTOR ROBERT NOLAND ADVERTISES ON TV MANY HAVE EXTENDED THEIR HOURS TO EVENINGS AND WEEKENDS AND OPENED SUBURBAN OFFICES SO PATIENTS DON'T HAVE TO TRAVEL DRS KONDROT AND STOUT FOR THEIR PART ADVERTISE THEIR NEARSIGHTEDNESS CURE WITH A BROCHURE FEATURING AN ATTRACTIVE WOMAN IN A BATHING SUIT THEIR OFFICE HAS A SIGN PROCLAIMING WE WELCOME NEW PATIENTS AND A BIGGER SIGN DECLARING PAYMENT IS EXPECTED AT TIME OF SERVICE THEY HAVE A BUILTIN SURGICAL CENTER IN THE OFFICE AND AN OPTICAL SHOPPE WITH DESIGNER FRAMES SOME OPHTHALMOLOGISTS EVEN RECRUIT PATIENTS BY GIVING BASEBALL TICKETS AND GOLF OUTINGS TO OPTOMETRISTS WHO MAKE REFERRALS ONE OPTOMETRIST LOWELL LEBOVITZ SAYS HIS OFFICE FILLS WITH CANDIES FRUIT BASKETS AND CARDS FROM OPHTHALMOLOGISTS EACH DECEMBER BUT DR LEBOVITZ HAS FOUND THAT OPHTHALMOLOGISTS SOMETIMES DON'T RETURN THE PATIENTS HE REFERS FOR SPECIAL TREATMENTS WHEN HE CALLS TO REPORT THE THEFT DR LEBOVITZ SAYS THE GUILTY OPHTHALMOLOGIST BLAMES IT ON AN OVERSIGHT THAT HE SAYS DOESN'T SIT WELL WITH ME SEE RELATED LETTER LETTERS TO THE EDITOR THEY'RE ONLY HUMAN WSJ APRIL 9 1993 9303190075 9304090195 930409 DRUG CONCERNS EXPECT EARNINGS TO GROW SLOWLY GERMAN HEALTH REFORMS PRICE COMPETITION HURT FIRSTQUARTER OUTLOOK BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL PHARMACEUTICAL COMPANIES' SALES AND EARNINGS TOOK BRUISING HITS FROM PRICE COMPETITION AND GERMAN HEALTH REFORM IN THE FIRST QUARTER ANALYSTS SAID PHARMACEUTICAL COMPANIES ARE EXPECTED TO POST SALES GROWTH OF 5 TO 6 DOWN FROM 8 A YEAR AGO WHILE EARNINGS GROWTH IS EXPECTED TO SLOW TO 8 FROM 12 A YEAR AGO SEVERAL COMPANIES ALREADY HAVE WARNED WALL STREET ANALYSTS TO EXPECT A DISAPPOINTING QUARTER ELI LILLY & CO INDIANAPOLIS AND MARION MERRELL DOW INC A UNIT OF MIDLAND MICHBASED DOW CHEMICAL CO SAID FIRSTQUARTER EARNINGS WOULD BE LOWER THAN A YEAR EARLIER MERCK & CO RAHWAY NJ AND WARNERLAMBERT CO MORRIS PLAINS NJ SAID TO EXPECT SLOWER GROWTH INTERNATIONAL SALES WHICH WERE STRONG IN THE SECOND HALF OF LAST YEAR WERE HURT IN THE FIRST QUARTER BY TWO FACTORS THE STRENGTH OF THE DOLLAR AGAINST EUROPEAN CURRENCIES AND GERMAN HEALTHCARE REFORM THIS QUARTER IS GOING TO BE A DISASTER INTERNATIONALLY SAID JOYCE ALBERS AN ANALYST AT FIRST BOSTON CORP SOME KEY CHANGES IN THE GERMAN HEALTHCARE SYSTEM SHARPLY REDUCED PHARMACEUTICAL SALES IN THAT COUNTRY DURING THE FIRST QUARTER SAID KRISTINE BRYAN AN ANALYST AT SG WARBURG & CO GERMANY IS THE WORLD'S THIRDLARGEST MARKET FOR DRUG COMPANIES AND REPRESENTS ABOUT 8 OF THE WORLD PHARMACEUTICAL SALES AND ABOUT 5 OF MOST US DRUG COMPANIES' SALES MS BRYAN ESTIMATED BEGINNING THIS YEAR GERMANY IMPOSED A 5 PRICE CUT ON MANY DRUGS INCREASED PATIENT COPAYMENTS FOR DRUGS AND PLACED LIMITS ON PHYSICIAN PRESCRIPTIONS SHE SAID REPORTS INDICATE DRUG SALES IN GERMANY DECLINED 32 IN JANUARY AND 27 IN FEBRUARY AS A RESULT OF THE CHANGES MS BRYAN SAID THE DOLLAR IS STRONGER THAN A YEAR AGO WHICH MEANS PHARMACEUTICAL COMPANIES GET FEWER DOLLARS FOR SALES MADE IN INTERNATIONAL CURRENCIES MOST MAJOR PHARMACEUTICAL COMPANIES HAVE LARGE OVERSEAS OPERATIONS AMOUNTING TO AS MUCH AS HALF OF THEIR TOTAL SALES CURRENCY RATES MAY NEGATIVELY AFFECT DRUG COMPANIES' FIRSTQUARTER SALES BY ONE TO THREE PERCENTAGE POINTS ANALYSTS SAID THE COMPANIES WITH THE GREATEST INTERNATIONAL EXPOSURE ARE MERCK NEW YORKBASED PFIZER INC WARNERLAMBERT AND NEW YORKBASED BRISTOLMYERS SQUIBB CO SAID FIRST BOSTON'S MS ALBERS IN THE US REVENUE IS UNDER PRESSURE FROM INTENSIFYING COMPETITION TO GAIN MARKET SHARE SOME COMPANIES ARE DISCOUNTING PRICES PRIMARILY TO LARGE INSTITUTIONAL BUYERS SUCH AS HEALTH MAINTENANCE ORGANIZATIONS BRISTOLMYERS'S AGGRESSIVE MARKETING OF ITS ANTICHOLESTEROL DRUG PRAVACHOL PROMPTED MERCK TO TEMPORARILY DISCOUNT ITS CHOLESTEROLLOWERING DRUGS MEVACOR AND ZOCOR PRICE BATTLES ALSO ARE BEING WAGED AMONG BLOODPRESSURE DRUGS ULCER MEDICATIONS ANTIDEPRESSANTS AND SOME ANTIBIOTICS THE POLITICAL STORM OVER EVERLARGER DRUG PRICE INCREASES IN RECENT YEARS HAS ALL BUT ELIMINATED THE ABILITY OF DRUG COMPANIES TO MAKE UP FOR WEAK REVENUE GROWTH BY BOOSTING PRICES DRUG COMPANIES AREN'T LIKELY TO MAKE ANY OF THEIR USUAL EFFORTS TO ENHANCE EARNINGS THIS QUARTER AND SOME PEOPLE THINK THEY MIGHT BE DOING JUST THE OPPOSITE TO DIFFUSE POLITICAL CRITICISM OF EXCESSIVE PROFITS IN THE INDUSTRY MS BRYAN SAID LOOKING BEYOND THE FIRST QUARTER MS ALBERS NOTED A DEARTH OF NEW PRODUCTS WHICH USUALLY ARE THE BIGGEST DRIVER OF REVENUE GROWTH IN THE PAST WHEN THE INDUSTRY WENT THROUGH SUCH DRY SPELLS COMPANIES MANAGED THROUGH IT BY RAISING PRICES ON EXISTING PRODUCTS WHICH THEY CAN'T DO THIS TIME AROUND SHE SAID MS BRYAN SAID DRUG STOCKS MIGHT RALLY AFTER THE CLINTON ADMINISTRATION UNVEILS ITS HEALTHCARE REFORM PACKAGE IN MAY BECAUSE THE UNCERTAINTY WILL BE ELIMINATED BUT SHE WARNED THE COMPETITIVE PRESSURES AND MARKET CHANGES THAT ARE ERODING SALES AND EARNINGS WILL CONTINUE PFIZER'S FIRSTQUARTER OUTLOOK IS AMONG THE ROSIEST IN ANALYSTS' EYES MS ALBERS FORESEES 102 A SHARE UP 23 FROM THE 83 CENTS EARNED A YEAR AGO FROM CONTINUING OPERATIONS THE COMPANY'S EARNINGS GROWTH IS BEING DRIVEN BY STRONG SALES OF PRODUCTS SUCH AS HEART DRUG PROCARDIA XL AND ANTIDEPRESSANT ZOLOFT AND BY IMPROVING SALES OF THE ANTIBIOTIC ZITHROMAX WHICH GOT OFF TO A SLOW START MS ALBERS SAID SCHERINGPLOUGH CRP OF MADISON NJ CONTINUES TO BENEFIT FROM STRONG SALES IN JAPAN OF INTRON A ITS CANCER AND VIRAL TREATMENT ANALYSTS SAID THE COMPANY IS EXPECTED TO POST GROWTH IN EARNINGS PER SHARE OF ABOUT 17 ABOVE LAST YEAR'S 96 CENTS A SHARE BRISTOLMYERS WAS NEGATIVELY AFFECTED BY PROBLEMS IN GERMANY MS ALBERS SAID A COMPANY SPOKESMAN SAID SALES IN GERMANY APPEAR TO BE IMPROVING AFTER THE GERMAN GOVERNMENT ATTEMPTED TO CLARIFY CONFUSION ARISING FROM THE HEALTHCARE REFORMS MADE EARLIER THIS YEAR ANALYSTS PREDICT A 5 TO 7 INCREASE IN THE COMPANY'S FIRST QUARTER ABOVE THE 103 EARNED FROM CONTINUING OPERATIONS A YEAR AGO MERCK LAST MONTH PRODDED ANALYSTS TO TEMPER THEIR FIRSTQUARTER EARNINGS EXPECTATIONS MS ALBERS LOWERED HER ESTIMATE TO 52 CENTS A SHARE FROM 54 CENTS MS BRYAN PROJECTED EARNINGS OF 51 CENTS THOSE ESTIMATES OF 6 TO 8 GROWTH WOULD BE A SLOWDOWN FROM THE 18 INCREASE A YEAR AGO WHEN MERCK'S CONTINUING OPERATIONS EARNED 48 CENTS A SHARE REPRESENTATIVES FOR PFIZER SCHERING BRISTOLMYERS AND MERCK DECLINED TO COMMENT ON ANALYSTS' PROJECTIONS WARNERLAMBERT ALSO INDICATED THAT FIRSTQUARTER RESULTS WERE HURT BY REGULATORY PROBLEMS RELATED TO THE COMPANY'S PHARMACEUTICAL MANUFACTURING OPERATIONS PRIMARILY IN PUERTO RICO IT SAID OVERALL FIRSTQUARTER SALES WOULD RISE ONLY MODESTLY A COMPANY SPOKESWOMAN SAID PROJECTIONS FOR FIRSTQUARTER EARNINGS GROWTH OF ABOUT 10 OVER A YEAR AGO'S 122 IN 1992 ARE PRETTY ACCURATE 9304090194 930409 WHO'S NEWS TWO SYNERGEN EXECUTIVES QUIT POSTS IN WAKE OF DISAPPOINTING TEST OF DRUG BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL BOULDER COLO TWO TOP EXECUTIVES OF SYNERGEN INC RESIGNED IN THE WAKE OF DISAPPOINTING CLINICAL TRIAL RESULTS OF THE BIOTECHNOLOGY COMPANY'S FLAGSHIP DRUG JON S SAXE PRESIDENT AND CHIEF EXECUTIVE RESIGNED OVER DIFFERENCES IN MANAGEMENT PHILOSOPHY SYNERGEN SAID WHILE THE COMPANY DIDN'T ELABORATE IT DID ANNOUNCE NEW EFFORTS TO CUT COSTS AND SHARPEN PRIORITIES LARRY SOLL SYNERGEN'S CHAIRMAN AND A FOUNDER ASSUMED THE CEO'S POSITION A JOB HE RELINQUISHED TO MR SAXE IN 1989 IN ADDITION THE COMPANY SAID MICHAEL A CATALANO WHO WAS IN CHARGE OF ALL CLINICAL TRIALS RESIGNED AS VICE PRESIDENT OF CLINICAL RESEARCH BUT WILL REMAIN A TECHNICAL CONSULTANT TO SYNERGEN FOUR EXECUTIVE VICE PRESIDENTS WILL WORK TOGETHER IN AN OFFICE OF THE PRESIDENT THE COMPANY SAID MR SOLL SAID IN AN INTERVIEW THAT SYNERGEN'S BOARD WANTED SOMEONE WITH MORE TECHNICAL EXPERTISE IN THE CEO'S SPOT AND WANTED TO EMPHASIZE AGILITY OVER MR SAXE'S LONGTERM VIEW THIS IS IN NO WAY HAVING THEM TAKE THE FALL MR SOLL SAID BUT I THINK WE HAVE TO HAVE A DIFFERENT KIND OF STRUCTURE AND PERSONNEL TO RESPOND TO THE CURRENT SITUATION SYNERGEN SAID IT WAS ASSESSING PRIORITIES FOR ITS PROGRAMS AND REVIEWING WHICH OF ITS PROGRAMS SHOULD BE DEFERRED OR CANCELED THE COMPANY IS INVOLVED IN DEVELOPING SEVERAL PHARMACEUTICALS TO TREAT INFLAMMATORY AND NEUROLOGICAL DISEASES SYNERGEN ALSO SAID IT MAY REDUCE STAFF AND ELIMINATE SEVERAL PLANNED CAPITAL EXPENDITURES MR SAXE EARLIER HAD TOLD EMPLOYEES THERE WOULDN'T BE ANY LAYOFFS NEITHER MR SAXE NOR DR CATALANO COULD BE REACHED FOR COMMENT IN FEBRUARY SYNERGEN REPORTED THAT A MAJOR TRIAL OF ITS SEPTICSHOCK DRUG ANTRIL FAILED TO MATCH RESULTS OF EARLIER TRIALS THE SETBACK SPARKED A PLUNGE IN SYNERGEN'S COMMON STOCK WHICH HAS TRADED AS HIGH AS 6625 IN THE PAST 52 WEEKS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY SYNERGEN FELL 25 CENTS TO 975 A NEW 52WEEK LOW THE TRIAL WAS ANOTHER SETBACK IN THE SEARCH FOR AN EFFECTIVE TREATMENT FOR SEPSIS A BLOOD INFECTION THAT KILLS 100000 US HOSPITAL PATIENTS A YEAR CENTOCOR INC AND XOMA CORP HAVE BOTH FAILED IN THE PAST YEAR TO GET INITIALLY PROMISING SEPSIS TREATMENTS ON THE MARKET SYNERGEN HAS SAID IT PLANS A SECOND MAJOR TRIAL OF ANTRIL AND MR SOLL SAID THAT THE TRIAL IS NOW THE COMPANY'S HIGHEST PRIORITY THE TRIAL WILL FOCUS ON THE SICKEST SEPSIS PATIENTS THE SUBGROUP THAT HAS RESPONDED BEST TO ANTRIL TREATMENTS MR SAXE HAD BEEN CREDITED WITH MOVING SYNERGEN FROM A SCIENTIFIC LAB THAT STRUGGLED WITH PRODUCT DEVELOPMENT TO A MORE TRADITIONAL CORPORATION BY FOR EXAMPLE FORMING A MARKETING DEPARTMENT WHAT JON SAXE DID WAS TURN THAT COMPANY INTO A COMPANY INSTEAD OF A RESEARCH HOUSE SAID CYNTHIA ROBBINSROTH EDITOR IN CHIEF OF BIOVENTURE PUBLISHING A SAN MATEO CALIF BIOTECHNOLOGY NEWSLETTER CONCERN UNFORTUNATELY HE RAN INTO THE CLASSIC PROBLEM IN BIOTECH SOMETIMES YOUR PRIZE RACE HORSE STUMBLES ANALYSTS NOTED THAT CENTOCOR AND CETUS CORP BOTH REPLACED TOP EXECUTIVES WHEN PRODUCTS FLOPPED WITHOUT THE PRODUCT PIPELINE OF ESTABLISHED PHARMACEUTICAL COMPANIES BIOTECH CONCERNS MUST MOVE QUICKLY TO RESTORE CONFIDENCE THEY SAID FOR SYNERGEN THE RESIGNATIONS SIGNIFY A REAL CHANGE IN COMPANY STRATEGY SAID COWEN & CO ANALYST CAROL WERTHER I THINK THEY WILL BE A LOT MORE BOTTOMLINE ORIENTED SYNERGEN HAD 225 MILLION IN CASH ON HAND AT THE END OF THE LAST QUARTER AND MR SOLL SAID THE COMPANY WAS ON TARGET TO END THE YEAR WITH 150 MILLION IN CASH WITH ANTRIL DELAYED TO 1996 AT THE EARLIEST THE COMPANY WOULD HAVE RUN OUT OF CASH NEXT YEAR AT ITS PREVIOUS SPENDING PACE MS WERTHER SAID THEY HAVE A LOT OF CASH AND IF THEY SPEND IT WISELY THEY MIGHT MAKE IT SHE SAID 9304090193 930409 SGB SAYS GROUP NET DECLINED 18 IN 1992 PLANS INVESTMENTS SPECIAL TO THE WALL STREET JOURNAL BRUSSELS SOCIETE GENERALE DE BELGIQUE SAID THE VIRTUAL DISAPPEARANCE OF ONETIME ITEMS PUSHED CONSOLIDATED GROUP NET INCOME LESS MINORITY INTERESTS 18 LOWER TO 62 BILLION BELGIAN FRANCS 1865 MILLION IN 1992 HOWEVER RECURRING PROFITS ROSE BY 38 TO 61 BILLION FRANCS THE BELGIAN HOLDING COMPANY SAID IN A STATEMENT SGB CHAIRMAN ETIENNE DAVIGNON AND CHIEF EXECUTIVE GERARD MESTRALLET DECLINED TO FORECAST THE GROUP'S 1993 PERFORMANCE OTHER THAN TO SAY IT AIMS TO MAINTAIN THE PROFIT STREAM ON ORDINARY OPERATIONS MEANTIME SGB SAID IT IS WILLING TO INCREASE ITS STAKE IN ITS BANKING UNIT GENERALE DE BANQUE AS PART OF A PLAN TO UNWIND INSURER GROUPE AG'S STAKE IN THE BANK MR DAVIGNON SAID WE ARE READY TO TAKE A SIGNIFICANT SHARE IN GENERALE DE BANQUE IF GROUPE AG WANTS TO DIVEST HE DEFINED A SUBSTANTIAL STAKE AS 6 TO 7 SGB HAS A 20 AND GROUPE AG A 14 STAKE IN GENERALE DE BANQUE A 6 TO 7 INCREASE WOULD RAISE SGB'S STAKE TO MORE THAN 25 SGB ALSO OWNS 20 OF GROUPE AG AND GROUPE AG OWNS ABOUT 12 OF SGB ALSO MR DAVIGNON SAID THE MAIN SHAREHOLDERS OF LUXEMBOURG STEEL MAKER ARBED SA ARE SEEKING A NEW INDUSTRIAL PARTNER TO INJECT FUNDS INTO THE COMPANY MR DAVIGNON SAID SGB AND THE LUXEMBOURG GOVERNMENT HAD AGREED TO EACH PLACE 6 OF ARBED'S SHARES INTO A JOINTLY HELD COMPANY THAT WOULD BE SOLD TO A NEW PARTNER SGB HAS A 25 STAKE IN ARBED THE LUXEMBOURG GOVERNMENT HAS A 41 STAKE MR DAVIGNON ALSO SAID SGB WOULD SWAP 4 OF ITS ARBED VOTING SHARES FOR NONVOTING SHARES FROM THE LUXEMBOURG GOVERNMENT AFTER THE TRANSACTIONS SGB'S ARBED STAKE WILL BE REDUCED TO ABOUT 15 ALLOWING SGB TO BREAK THE STEEL MAKER OUT OF ITS 1993 CONSOLIDATED EARNINGS 9304090192 930409 LETTERS TO THE EDITOR SLAIN DOCTOR VICTIM OF ABORTION TERRORISM JUST OVER SIX YEARS AGO OUR MANHATTAN CLINIC NAMED FOR MY GRANDMOTHER MARGARET SANGER WAS SPARED DESTRUCTION ONLY BY TECHNOLOGICAL FAILURE FIFTEEN STICKS OF DYNAMITE WERE PLACED IN THE CLINIC ON A SUNDAY WHEN IT WAS CLOSED WHEN THE BLASTING CAP EXPLODED A DOZEN POLICE OFFICERS WERE PRESENT THEY OWE THEIR LIVES TO THE FACT THAT SOMEHOW THE BLASTING CAP DID NOT DETONATE THE BOMB WE WHO PROVIDE ABORTION AS PART OF OUR WOMEN'S HEALTH CARE SERVICES CANNOT ACCEPT VAGUE HISTORICAL ANALOGIES LIKE THOSE OFFERED IN YOUR MARCH 18 EDITORIAL NO GUARDRAILS TO EXPLAIN ANTIABORTION VIOLENCE THE KILLING OF DR DAVID GUNN WAS AN ACT OF TERRORISM DESIGNED TO ACHIEVE BY PHYSICAL FORCE WHAT COULD NOT BE DONE BY THE POLITICAL PROCESS THE ANTIABORTION MOVEMENT HAS HAD 20 YEARS TO MAKE ITS CASE AND EVEN HAD THE ASSISTANCE OF THE WHITE HOUSE BULLY PULPIT FOR MORE THAN A DECADE THE AMERICAN PEOPLE WERE NOT AND ARE NOT CONVINCED BY ITS ARGUMENTS OR GRAPHIC POSTERS TOO MANY FAMILIES HAVE SHARED THE HARD CHOICE VERY FEW WANT A POLITICIAN TO MAKE THE DECISION FOR ANY WOMAN THAT SHE MUST BECOME A MOTHER CERTAIN PEOPLE ASIDE FROM THE ASSASSIN SHARE POLITICAL RESPONSIBILITY FOR DR GUNN'S MURDER THE ANTIABORTION LEADERS WHO DISTRIBUTE WANTED POSTERS OF ABORTION PROVIDERS WHO DISTRIBUTE DOCTORS' HOME PHONE NUMBERS ADDRESSES AND TRAVEL ITINERARIES WHILE EXHORTING THEIR FOLLOWERS TO STOP THEM THESE ARE INTELLIGENT PEOPLE FLIRTING WITH INCITEMENT TO VIOLENT CRIME TREADING RIGHT UP TO THE LINE OF INDICTABLE CULPABILITY AND CAREFULLY GOING NO FURTHER WHEN ONE OF THEIR MORE UNBALANCED FOLLOWERS CROSSED THE LINE THESE SAME LEADERS RANDALL TERRY OF OPERATION RESCUE DON TRESHMAN AND JOHN BURT OF RESCUE AMERICA HEADING THE LIST MADE SOMEWHAT CAVALIER STATEMENTS REGARDING THE MURDER OF A DOCTOR FOR THREE PRESIDENTIAL TERMS THE FEDERAL GOVERNMENT ALSO WINKED OFFERING THESE FRINGE GROUPS POLITICAL AND LEGAL SUPPORT WHILE HARASSMENT AND VIOLENCE RAINED DOWN UPON ABORTION PROVIDERS BUT WITH PRESIDENT CLINTON AND ATTORNEY GENERAL JANET RENO IN OFFICE WE EXPECT FEDERAL LAW ENFORCEMENT WILL MAKE A PRIORITY OF PROTECTING OUR CLINICS AND DOCTORS 9304090190 930409 AUSTRALIA'S PACKER CONFIRMS HE BOUGHT JOHN FAIRFAX STAKE SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA KERRY PACKER AUSTRALIA'S RICHEST INDIVIDUAL THURSDAY CONFIRMED HE WAS THE BUYER OF A LARGE PARCEL OF SHARES IN JOHN FAIRFAX HOLDINGS LTD TUESDAY AND SAID ENTITIES HE OWNS NOW HOLD 105 OF FAIRFAX FAIRFAX AUSTRALIA'S SECOND BIGGEST NEWSPAPER PUBLISHER IS CONTROLLED BY CANADIAN PUBLISHER CONRAD BLACK'S TELEGRAPH PLC WHICH HAS 15 MR PACKER'S PRIVATE COMPANY PUBLISHING & BROADCASTING LTD THURSDAY INFORMED THE AUSTRALIAN STOCK EXCHANGE IT HAS BECOME A MAJOR SHAREHOLDER OF FAIRFAX WHEN A STAKE OF MORE THAN 5 WAS ACQUIRED TUESDAY BY BROKERAGE FIRM ORD MINNETT SECURITIES LTD THERE WERE RUMORS THAT THE BUYER WAS EITHER MR PACKER OR MR BLACK ORD MINNETT BOUGHT ABOUT 36 MILLION SHARES TUESDAY MOST AFTER THE MARKET CLOSED AT 210 AUSTRALIAN DOLLARS US148 EACH WELL ABOVE THE PREVAILING MARKET PRICE OF A192 MR PACKER SAID HE BOUGHT 36 MILLION FAIRFAX SHARES PAYING A TOTAL INCLUDING BROKERAGE AND STAMP DUTY OF A762 MILLION AFTER SPENDING A497 MILLION BETWEEN LATE OCTOBER AND EARLY MARCH ON 329 MILLION SHARES PUBLISHING & BROADCASTING IS NOW THE SECOND BIGGEST SHAREHOLDER IN FAIRFAX BEHIND TELEGRAPH US INVESTMENT CONCERN HELLMAN & FRIEDMAN ALSO OWNS 5 WHEN FAIRFAX WAS PUT ON THE MARKET IN 1991 MR PACKER JOINED A SYNDICATE WITH MR BLACK AND HELLMAN & FRIEDMAN TO BUY THE PUBLISHER BUT WITHDREW WHEN AUSTRALIAN REGULATORS SAID THEY WOULD INVESTIGATE THE CONSORTIUM FOR POSSIBLE BREACHES OF CROSSMEDIAOWNERSHIP RULES MR BLACK HAS ASKED THE AUSTRALIAN GOVERNMENT FOR PERMISSION TO RAISE HIS STAKE IN FAIRFAX BUT HAS BEEN REFUSED THE GOVERNMENT IS CURRENTLY REVIEWING ITS POSITION AND IS EXPECTED TO DECIDE THIS MONTH WHETHER MR BLACK CAN BUY MORE SHARES BRIAN POWERS WHO IS A GENERAL PARTNER OF HELLMAN & FRIEDMAN AND WHO WAS APPOINTED MANAGING DIRECTOR OF MR PACKER'S FAMILY COMPANY CONSOLIDATED PRESS HOLDINGS LTD IN FEBRUARY WASN'T AVAILABLE FOR COMMENT THURSDAY FAIRFAX PUBLISHES DAILY BROADSHEET NEWSPAPERS IN AUSTRALIA'S TWO BIGGEST CITIES MELBOURNE'S AGE AND THE SYDNEY MORNING HERALD AS WELL AS THE NATIONAL AUSTRALIAN FINANCIAL REVIEW 9304090189 930409 WHO'S NEWS OLD KENT FINANCIAL CORP OLD KENT FINANCIAL CORP GRAND RAPIDS MICH MARGARET R SELLERS ASSISTANT PROFESSOR OF PUBLIC ADMINISTRATION AT GRAND VALLEY STATE UNIVERSITY WAS ELECTED TO THIS BANK HOLDING COMPANY'S BOARD INCREASING THE BOARD'S SIZE TO 14 9304090188 930409 WHO'S NEWS BANKAMERICA CORP BANKAMERICA CORP SAN FRANCISCO DOUGLAS H LEMMONDS VICE PRESIDENT OF THIS COMPANY'S NEW YORK PRIVATE BANKING OFFICE WAS NAMED DIRECTOR OF THE OFFICE WHICH OFFERS EXTRA SERVICES TO THE WEALTHY HE SUCCEEDS FW MIKE MURRAY WHO IS RETIRING 9304090187 930409 MARKETING & MEDIA DOW JONES NET ROSE 92 IN FIRST QUARTER REFLECTING '92 CHARGE NEW YORK DOW JONES & CO SAID FIRSTQUARTER NET INCOME ROSE 92 REFLECTING A CHARGE TAKEN IN THE YEAREARLIER PERIOD FOR ACCOUNTING CHANGES EXCLUDING THE YEAREARLIER CHARGE EARNINGS ROSE 15 AIDED BY INCREASED ADVERTISING REVENUE AT THE WALL STREET JOURNAL AND LOWER INTEREST EXPENSE THE PUBLISHING COMPANY SAID NET ROSE TO 309 MILLION OR 31 CENTS A SHARE FROM THE YEAREARLIER 161 MILLION OR 16 CENTS A SHARE REVENUE ROSE 63 TO 4634 MILLION FROM 4361 MILLION EARNINGS FOR THE 1992 FIRST QUARTER WERE RESTATED TO REFLECT A ONETIME NET CHARGE OF 108 MILLION OR 11 CENTS A SHARE FOR CHANGES IN ACCOUNTING FOR INCOME TAXES AND EMPLOYEE POSTRETIREMENT BENEFITS CONSOLIDATED OPERATING INCOME ROSE 46 IN THE QUARTER TO 654 MILLION OPERATING INCOME AT BUSINESS PUBLICATIONS CLIMBED 38 TO 318 MILLION AND REVENUE INCREASED 67 TO 1991 MILLION ADVERTISING LINAGE AT THE WALL STREET JOURNAL INCREASED 5 IN THE QUARTER AND ON A PERISSUE BASIS LINAGE WAS UP 67 THE INFORMATIONSERVICES SEGMENT WHICH INCLUDES RESULTS OF THE DOW JONES/TELERATE AND BUSINESS INFORMATION SERVICES GROUPS HAD OPERATING INCOME OF 345 MILLION DOWN 13 FROM A YEAR EARLIER THE DECLINE WAS LARGELY DUE TO INCREASED SPENDING FOR TECHNICAL AND PRODUCT DEVELOPMENT REVENUE FOR THE SEGMENT GREW 66 TO 2092 MILLIN OPERATING INCOME AT OTTAWAY NEWSPAPERS DOW JONES'S COMMUNITY NEWSPAPER SUBSIDIARY DECLINED 58 TO 38 MILLION WHILE REVENUE ROSE 35 TO 551 MILLION INCOME AT A NUMBER OF OTTAWAY NEWSPAPERS WAS HURT BY A MAJOR STORM THAT STRUCK THE EASTERN US IN MIDMARCH ADVERTISING LINAGE AT OTTAWAY'S 21 DAILY NEWSPAPERS WAS DOWN 03 IN THE FIRST QUARTER DOW JONES PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES/TELERATE AND COMMUNITY NEWSPAPERS 9304090186 930409 ECONOMY BIG BANKS LIKELY TO POST STRONG PROFITS AIDED BY DECLINE IN RATES BAD DEBTS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DESPITE PREDICTIONS OF WEAKER BANK PROFITS MAJOR BANKING COMPANIES ARE EXPECTED TO POST STRONG RESULTS FOR THE FIRST QUARTER PROPELLED BY LOW INTEREST RATES AND LOWER LOANLOSS CHARGES FOR BAD DEBTS LAST SUMMER MANY ANALYSTS HAD SAID THEY EXPECTED BANK EARNINGS TO SOFTEN IN THE FIRST QUARTER AS THE WIDE GAP BETWEEN BANK LENDING RATES AND BORROWING COSTS FINALLY NARROWED BUT NET INTEREST MARGINS REMAINED HEALTHY IN THE PERIOD MOREOVER THE DECLINE IN LONGERTERM INTEREST RATES IS EXPECTED TO HELP BANKS' SECURITIES PORTFOLIOS AS WELL AS BOOST EARNINGS OF BANKS ACTIVE IN MORTGAGE REFINANCINGS COMING OFF A RECORD YEAR FOR BANK EARNINGS IT'S GOING TO BE A GREAT FIRST QUARTER SAID THOMAS HANLEY BANKING ANALYST AT FIRST BOSTON CORP WHO CALLS THE CURRENT ENVIRONMENT BANK HEAVEN IN FACT SAID MR HANLEY THIS YEAR IS LOCKED UP UBS SECURITIES IS FORECASTING A 20 INCREASE IN AVERAGE OPERATING EARNINGS FOR MONEYCENTER AND REGIONAL BANKS THE REPORTED FIGURES AT MANY BANKS HOWEVER WILL BE DISTORTED BY THE ADOPTION OF A SERIES OF NEW ACCOUNTING RULES THE NEW RULES WHICH REQUIRE COMPANIES TO ACCOUNT FOR THE HEALTH BENEFITS OF RETIREES AND WHICH ALLOWS THE ACCELERATION OF RECOGNITION OF TAX BENEFITS WILL MAKE THE BOTTOM LINE FIGURES UNREPRESENTATIVE OF THE QUARTER MARGINS ARE STABLE TRADING IS EXCELLENT ASSET QUALITY CONTINUES TO IMPROVE AND EXPENSES ARE UNDER CONTROL NOTED BRENT ERENSEL OF UBS SECURITIES REFLECTING THE EXPECTATIONS OF CONTINUED GOOD BANKING NEWS BANK SHARES JUMPED MORE THAN 10 IN THE FIRST QUARTER AT A TIME WHEN CONSUMER AND SOME CYCLICAL STOCKS HAVE GONE OUT OF FAVOR AMONG INVESTORS BANK ANALYSTS SAY THEIR COMPANIES REMAIN A BRIGHT SPOT EVEN IF THE ECONOMY REMAINS SLUGGISH WE THINK THEY'VE GOT ROOM TO RUN SAID MR HANLEY THE ENVIRONMENT IS BETTER THAN MANY HAD EXPECTED LAST YEAR ANALYSTS HAD BEEN PREDICTING THAT NET INTEREST MARGINS BETWEEN BORROWING AND LENDING RATES WOULD SHRINK AS COMPETITION DROVE DOWN THE PRIME LENDING RATE OR OTHER BORROWING COSTS MOREOVER SOME ANALYSTS WERE ASSUMING THAT SHORTTERM INTEREST RATES A PROXY FOR BANKS' FUNDING COSTS WOULD EDGE UP AS THE ECONOMY PICKED UP SPEED NEITHER OCCURRED INTEREST INCOME FROM LOANS AND OTHER ASSETS SHOULD CONTINUE TO BE STRONG THERE IS SOME CYCLICAL PICKUP IN LOAN GROWTH ESPECIALLY IN THE SOUTHEAST AND MIDWEST BUT THAT'S BEEN OFFSET BY A DROPOFF IN SEASONAL ACTIVITY FROM THE HOLIDAY MONTHS SAY ANALYSTS ON AVERAGE NET INTEREST MARGINS SHOULD REMAIN AT NEARRECORD LEVELS THE LOAN NUMBER STILL LOOKS SLUGGISH BUT MARGINS ARE KEEPING THAT END UP SAID ROBERT ALBERTSON AN ANALYST AT GOLDMAN SACHS & CO AMONG LARGE BANKS ANALYSTS HAVE RECENTLY BEEN RATCHETING UP THEIR ESTIMATES OF CITICORP'S FIRSTQUARTER RESULTS CITICORP IS EXPECTED TO POST EARNINGS OF 43 CENTS A SHARE ACCORDING TO THE CONSENSUS ESTIMATE TABULATED BY FIRST CALL CORP COMPARED WITH A YEAREARLIER LOSS OF 10 CENTS A SHARE THE VOLATILE CURRENCY AND BOND MARKETS SHOULD HELP CITICORP'S TRADING RESULTS AND CONSUMER BANKING PROFITS SHOULD REMAIN STRONG STILL ANALYSTS ARE EXPECTING THE BANK TO SET ASIDE AS MUCH AS 950 MILLION IN RESERVES FOR LOAN LOSSES DOWN FROM 980 MILLION AT THE END OF 1992 OTHER BANKS WITH BIG TRADING OPERATIONS SUCH AS BANKERS TRUST NEW YORK CORP CHEMICAL BANKING CORP CHASE MANHATTAN CORP AND JP MORGAN & CO ARE ALSO EXPECTED TO POST STRONG RESULTS AND CITICORP CHEMICAL AND CHASE WILL BENEFIT FROM THE SURGE IN MORTGAGE REFINANCINGS AS INTEREST RATES PLUNGED DURING THE QUARTER IN THE WEST ANALYSTS HAVE BEEN EDGING UP THEIR ESTIMATES FOR CALIFORNIA'S FIRST INTERSTATE BANCORP WALL STREET IS LOOKING FOR THE LOS ANGELESBASED COMPANY TO EARN AROUND 109 A SHARE ACCORDING TO FIRST CALL COMPARED TO 73 CENTS A YEAR EARLIER BOTH EXPENSES AND NONPERFORMING ASSETS SHOULD CONTINUE TO FALL THE NET INTEREST MARGIN IS EXPECTED TO WIDEN BY 010 TO 015 OF A PERCENTAGE POINT ANALYSTS EARLIER HAD EXPECTED THE MARGIN TO SHRINK MANY ANALYSTS EXPECT FIRST INTERSTATE TO BOOST ITS 120ASHARE ANNUAL DIVIDEND 9304090185 930409 TECHNOLOGY & HEALTH APPLE COMPUTER CUTS POWERBOOK DUO LINE PRICES BY 10 TO 18 CAMPBELL CALIF AMID CONTINUED PERSONAL COMPUTER DISCOUNTING APPLE COMPUTER INC IMPOSED PRICE CUTS OF 10 TO 18 ACROSS A RANGE OF ITS POWERBOOK DUO COMPUTER PRODUCTS POWERBOOK DUO IS A PRODUCT THAT COUPLES A DESKTOP COMPUTER WITH A FOURPOUND NOTEBOOK COMPUTER LINKING A USER'S STATIONARY AND PORTABLE COMPUTING NEEDS IN A SINGLE SYSTEM THE POWERBOOK DUO SYSTEM HAS BEEN IN HIGH DEMAND AND SHORT SUPPLY SINCE ITS INTRODUCTION IN OCTOBER SAID BOB PUETTE PRESIDENT OF THE COMPANY'S APPLE USA DIVISION WE'RE NOW CATCHING UP WITH DEMAND AND THE PRODUCT IS MORE READILY AVAILABLE AT APPLE RESELLERS APPLE STOCK FELL 75 CENTS IN OVERTHECOUNTER TRADING YESTERDAY TO 4975 BRUCE LUPATKIN A SECURITIES ANALYST AT HAMBRECHT & QUIST IN SAN FRANCISCO SAID APPLE'S MOVE REFLECTS THE REALITY OF TOUGH AND ONGOING PRICE COMPETITION IN PERSONAL COMPUTERS OFTEN INITIATED BY COMPANIES LIKE COMPAQ COMPUTER CORP THE PRICE DECLINES WE'VE SEEN ARE GOING TO CONTINUE HE SAID SO APPLE'S GOT TO STAY ATTUNED HE SAID THE CONSUMER MARKET LOVES THE DISCOUNTING AND THE STOCK MARKET EXPECTS IT HAVING ALREADY FACTORED IT INTO THE EARNINGS OUTLOOK MOREOVER WITH PRODUCT CYCLES GROWING SHORTER AND SHORTER HE ADDED APPLE MAY BE READYING A NEW ROUND OF PRODUCTS AND THUS MAY WANT TO KEEP THEIR INVENTORIES OF OLDER PRODUCTS DOWN 9304090184 930409 WHAT'S NEWS BUSINESS AND FINANCE CLINTON ISSUED A DETAILED BUDGET PROPOSAL THAT TRIMS THE 1997 DEFICIT BY 1328 BILLION BUT THE BUDGET RESOLUTION PASSED BY CONGRESS SETS TOUGHER RESTRAINTS ON SPENDING THAN CLINTON SEEKS THE PRESIDENT'S LATEST PROPOSAL ASSUMES THE TRADE DEFICIT WILL WIDEN THIS YEAR AND IN 1994 THE ADMINISTRATION'S TAX PLAN WOULD LET COMPANIES DEDUCT EXECUTIVE PAY OF MORE THAN 1 MILLION AS LONG AS THE PAY IS BASED ON PERFORMANCE STANDARDS APPROVED BY SHAREHOLDERS PRODUCER PRICES ROSE 04 IN MARCH THE SAME AS IN FEBRUARY BUT EXCLUDING THE VOLATILE FOOD AND ENERGY SECTORS PRICES INCREASED 01 THE FIGURES MAY HELP QUELL INFLATION WORRIES SEPARATELY US BUSINESSES PLAN TO INCREASE CAPITAL SPENDING 66 IN 1993 BOND PRICES SOARED ON THE INFLATION DATA AS STOCKS WERE MIXED AND THE DOLLAR FELL TO A RECORD LOW AGAINST THE YEN THE 30YEAR TREASURY BOND'S PRICE ROSE 1 1/4 POINTS ITS YIELD FELL TO 685 WESTINGHOUSE IS SELLING MOST OF ITS COMMERCIAL REAL ESTATE ASSETS FOR 1 BILLION TO A PARTNERSHIP OF ITSELF AND THE LEHMAN BROTHERS UNIT OF AMERICAN EXPRESS WESTINGHOUSE'S STOCK PRICE JUMPED 1625 OR 114 TO 15875 COMPAQ AND MICROSOFT PLAN TO ANNOUNCE A TECHNOLOGYSHARING PACT NEXT WEEK AIMED AT BOOSTING THEIR PRESENCE IN SUCH AREAS AS MOBILE COMPUTING AND PENBASED PERSONAL COMPUTERS RETAILERS POSTED DISAPPOINTING SALES FOR MARCH AS SNOWSTORMS AND CONSUMER UNCERTAINTY HURT BUSINESS SPECIALTY RETAILERS WERE HIT HARDEST LOCAL BROADCASTERS CAN FORCE CABLE TV SYSTEMS TO CARRY THEIR SIGNALS A FEDERAL APPEALS COURT RULED UPHOLDING LEGISLATION ADOPTED LAST YEAR BANKAMERICA IS EXPECTED TO POST A 15 BILLION FIRSTQUARTER NONCASH CHARGE IN A MOVE THAT COULD FURTHER ERODE THE BANK'S CAPITAL AND RAISE MORE QUESTIONS ABOUT ITS ACQUISITIONS US SURGICAL STOCK PLUNGED 1525 OR 33 TO 31375 AFTER THE SURGICAL PRODUCTS COMPANY WARNED IT WILL POST SHARPLY LOWER SECONDQUARTER PROFIT STAPLES' PRESIDENT RESIGNED UNEXPECTEDLY THE OFFICE SUPPLY RETAILER'S STOCK SANK 250 OR 78 TO 2950 TWO TOP SYNERGEN EXECUTIVES QUIT IN THE WAKE OF DISAPPOINTING CLINICAL TRIAL RESULTS OF THE BIOTECHNOLOGY COMPANY'S FLAGSHIP DRUG FOR SEPTIC SHOCK FORD PAID CHAIRMAN HAROLD POLING 25 MILLION IN TOTAL COMPENSATION LAST YEAR UP 33 FROM 1991 HE ALSO GOT OPTIONS VALUED AT 18 MILLION FIRST UNION IS BEING INVESTIGATED BY REGULATORS WHO WANT TO DETERMINE WHETHER THE BANK HOLDING COMPANY ILLEGALLY LINKED THE GRANTING OF CREDIT TO OBTAINING UNDERWRITING BUSINESS TOKYO STOCKS CLIMBED THURSDAY THE NIKKEI INDEX ROSE 13804 TO 1996727 ITS HIGHEST CLOSE IN A YEAR BONDS LEHMAN BROTHERS TREASURY INDEX 506560 UP 5844 COMMODITIES OIL 2022 A BARREL OFF 15 CENTS DOW JONES FUTURES INDEX 12398 OFF 050 SPOT INDEX 12305 UP 015 DOLLAR 11335 YEN OFF 017 16055 MARKS OFF 00140 9304090183 930409 BUSINESS BRIEFS COLUMBIA HOSPITAL CORP SIGNED A LETTER OF INTENT TO ACQUIRE PEMBROKE PINES HOSPITAL A 301BED ACUTECARE HOSPITAL IN PEMBROKE PINES FLA FROM GALEN HEALTH CARE INC TERMS WEREN'T DISCLOSED LEXMARK INTERNATIONAL INC PURCHASED GESTETNER LASERS AUSTRALIABASED GESTETNER HOLDINGS PLC'S LASER PRINTER MANUFACTURING AND DISTRIBUTING UNIT CHEVRON CORP SELECTED HEALTH NET A CALIFORNIA HEALTH MAINTENANCE ORGANIZATION TO OFFER ITS NEW POINTOFSERVICE MEDICAL PLAN TERMS WEREN'T DISCLOSED TOSCO CORP COMPLETED THE ACQUISITION OF THE BAYWAY REFINERY LINDEN NJ FROM EXXON CORP FOR 175 MILLION STEEL OF WEST VIRGINIA INC ACQUIRED MARSHALL STEEL INC'S MEMPHIS TENN FACILITY FOR ABOUT 5 MILLION OMNICARE INC ACQUIRED CLOSELY HELD FREED'S PHARMACY OVERLAND PARK KAN FOR 8 MILLION IN CASH THE ASSUMPTION OF 500000 IN DEBT AND A PAYMENT OF AS MUCH AS 5 MILLION DEPENDING ON FUTURE EARNINGS INTERNATIONAL BUSINESS MACHINES CORP'S IBM ECONOMICS STAFF FORMED A JOINT MARKETING VENTURE WITH AUS CONSULTANTS TO SELL ANALYTICAL SERVICES TO BUSINESS CLIENTS 9304090182 930409 BIG TOOL MAKERS EXPECTED TO POST HIGHER EARNINGS FIRSTQUARTER IMPROVEMENT IS LIKELY DESPITE WEAK SALES IN OTHER NATIONS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MAJOR MACHINE TOOL MAKERS ARE EXPECTED TO POST STRONGER FIRSTQUARTER EARNINGS AFTER A LACKLUSTER START BUT WEAK OVERSEAS SALES HAVE LEFT THE RECOVERY UNEVEN AMONG COMPANIES WITH LARGE FOREIGN EXPOSURE THANKS TO A BOOST FROM AUTO AND INDUSTRIAL PARTS MAKERS THE ENTIRE MACHINE TOOL INDUSTRY BENEFITED FROM A STRONGER ORDER BOOK INDEED ORDERS IN FEBRUARY CLIMBED 615 TO 2836 MILLION FROM JANUARY LEVELS THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY SAID THE FIRST QUARTER STARTED SLOW SAID WILLIAM L POTTER AN ANALYST WITH WERTHEIM SCHRODER & CO IT WASN'T UNTIL THE FEBRUARY ANNOUNCEMENT OF INDUSTRY ORDERS THAT WE SAW THE ORDERS BEGINNING TO PICK UP INDUSTRY SHIPMENTS ROSE 345 TO 4851 MILLION IN JANUARY AND FEBRUARY EVEN THEN STRONG ORDERS WEREN'T ENOUGH TO OFFSET WEAK OVERSEAS ORDERS MACHINE TOOL MAKERS WERE HOPING THAT LAST YEAR'S PROPOSED INVESTMENT TAX CREDIT WOULD CREATE A BOON IN ORDERS IN 1993 BUT THAT HASN'T HAPPENED YET STILL THE PROPOSED TAX CREDIT ALONG WITH A STRENGTHENING ECONOMY SHOULD BOOST ORDERS BY ABOUT 5 THIS YEAR PREDICTED MR POTTER LAST YEAR THE INDUSTRY HAD 25 BILLION IN ORDERS A 63 DECLINE FROM 1991 THE NATION'S BIGGEST MACHINE TOOL MAKER GIDDINGS & LEWIS INC IS AIDED BY ITS EMPHASIS ON COMPLEX OFTEN CUSTOMIZED MACHINING SYSTEMS WHICH COMPANIES BUY EVEN IN ECONOMIC DOWNTURNS TO BOOST PRODUCTIVITY THE FOND DU LAC WIS COMPANY SHOULD EARN 28 CENTS A SHARE ACCORDING TO CONSENSUS ANALYSTS' ESTIMATES COMPILED BY FIRST CALL CORP UP FROM 73 MILLION OR 23 CENTS A SHARE ADJUSTED FOR A 2FOR1 STOCK SPLIT GIDDINGS'S BOTTOM LINE IS ALSO BENEFITING FROM COSTCUTTING IN THE WAKE OF ITS 1991 ACQUISITION OF CROSS & TRECKER CORP SAID MR POTTER LIKE GIDDINGS NEWCOR INC TROY MICH IS BEING HELPED BY ITS FOCUS ON HIGHLY SPECIALIZED MACHINE TOOL SYSTEMS THE SYSTEMS ARE LARGELY USED BY CARMAKERS WHO ARE SEEKING WAYS TO MAKE THEIR OWN FACTORIES MORE PRODUCTIVE AND CHURN OUT NEW ENGINES IN THE QUARTER ENDING APRIL 30 NEWCOR SHOULD EARN 32 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC UP FROM 373000 OR 12 CENTS A SHARE IN THE YEAREARLIER PERIOD JOHN GARBER CHIEF FINANCIAL OFFICER SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES FOR THE FIRST QUARTER DURING PRESENTATIONS TO POTENTIAL INVESTORS IN ITS STOCK OFFERING CINCINNATI MILACRON MANAGEMENT INDICATED THAT ITS ACQUISITION OF GTE VALENITE CORP ALREADY IS PRODUCING POSITIVE CASH FLOW ANALYSTS SAID MONARCH MACHINE TOOL CO SIDNEY OHIO IS EXPECTED TO SHOW A FIRSTQUARTER PROFIT AFTER SHUTTING DOWN ITS MONEYLOSING UNITED KINGDOM UNIT THE UNIT DEAN SMITH & GRACE MADE LOWEREND HIGHLY COMPETITIVE MACHINE TOOLS AND LED MONARCH TO POST A LOSS LAST YEAR ANALYSTS SAID MONARCH SHOULD EARN EIGHT CENTS A SHARE COMPARED WITH NET INCOME OF 101384 OR THREE CENTS A SHARE IN 1992'S FIRST QUARTER ANALYSTS SAID TWO MACHINE TOOL MAKERS HOWEVER STILL ARE FEELING THE EFFECTS OF TROUBLED ECONOMIES OVERSEAS INDIANAPOLISBASED HURCO COS IS EXPECTED TO LOSE 20 CENTS A SHARE IN THE QUARTER ENDING APRIL 30 COMPARED WITH A LOSS OF 18 MILLION OR 33 CENTS A SHARE A YEAR EARLIER GLEASON CORP TOO IS EXPECTED TO POST A FIRSTQUARTER LOSS ALTHOUGH ANALYSTS HAVE NO FIRM ESTIMATES IN 1992'S FIRST QUARTER GLEASON EARNED 1 MILLION OR 18 CENTS A SHARE THE COMPANY WHICH MAKES MACHINE TOOLS THAT CUT GEARS HAS AS MUCH AS 70 OF ITS SALES OVERSEAS ROCHESTER NYBASED GLEASON'S BUSINESS WITH AUTOMAKERS IN THE FAR EAST AND EUROPE SEEMS TO BE PRETTY MUCH ON ICE SAID JOHN B WALTHAUSEN DIRECTOR OF RESEARCH AT CL KING & ASSOCIATES IN ALBANY NY 9304090181 930409 WHO'S NEWS REVCO DS INC REVCO DS INC TWINSBURG OHIO DOUGLAS W COFFEY 52 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF HUMAN RESOURCES AT THIS DRUGSTORE CHAIN HE SUCCEEDS THOMAS E ROBINSON WHO RESIGNED IN OCTOBER 1992 MR COFFEY WAS MOST RECENTLY SENIOR VICE PRESIDENT OF HUMAN RESOURCES AND SELLING AND CUSTOMER SERVICES AT BURDINE'S DEPARTMENT STORES MIAMI A DIVISION OF FEDERATED DEPARTMENT STORES INC CINCINNATI 9304090180 930409 STONE CONTAINER SUSPENDS ITS PLAN FOR EQUITY OFFER BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO STONE CONTAINER CORP BACKED AWAY FROM A REFINANCING PLAN THAT BADLY SPOOKED INVESTORS CITING POOR MARKET CONDITIONS THE PAPER AND CONTAINER MAKER PUT OFF INDEFINITELY A PLAN DISCLOSED APRIL 1 FOR AN EQUITY OFFERING OF AS MUCH AS 500 MILLION IN ADDITION DEBTLADEN STONE SAID IT IS REVIEWING ANOTHER PART OF THE PLAN UNDER WHICH IT WAS TO RAISE AN ADDITIONAL 300 MILLION THROUGH PUBLIC DEBT OFFERINGS STONE HAD CHARACTERIZED THE OFFERINGS AS A WAY TO STRENGTHEN ITS BALANCE SHEET AS IT AWAITS STRONGER PULP AND PAPER PRICES BUT DISCONCERTED INVESTORS REACTED TO THE PLAN WITH A HIGHVOLUME SELLOFF THAT PUSHED STONE'S ALREADYDEPRESSED SHARES DOWN 42 THE STOCK HAD ALREADY FALLEN SIGNIFICANTLY FROM 12625 BEFORE THE PLAN WAS DISCLOSED YESTERDAY IT FELL 125 TO 750 A SHARE BEFORE TRADING WAS HALTED LATE IN THE DAY TRADING DIDN'T RESUME AFTER STONE DISCLOSED IT WAS SHELVING THE OFFERING IT IS IMPORTANT TO UNDERSTAND THAT THE PROPOSAL TO DELEVERAGE OUR BALANCE SHEET THROUGH THE EQUITY SALE WAS INITIATED BY US AND NOT IMPOSED UPON US BY THE BANKS SAID ROGER W STONE CHAIRMAN AND CHIEF EXECUTIVE OFFICER PROCEEDS OF THE EQUITY SALES WERE TO BE USED TO PAY BANK LOANS THROUGH 1994 AND INTO 1995 SAID ARNOLD F BROOKSTONE STONE'S CHIEF FINANCIAL OFFICER BECAUSE OF WHAT THE COMPANY CONSIDERS INVESTORS' MISPERCEPTION THAT PRESSING FINANCIAL PROBLEMS LED TO THE EQUITY OFFERING THE MARKET REACTED VERY ADVERSELY TO THE PLAN HE SAID AT THIS SHARE PRICE LEVEL IT DOESN'T MAKE SENSE TO SELL THE EQUITY HE SAID HAVING ANNOUNCED THAT A POSSIBLE PUBLIC STOCK SALE MIGHT BE IN THE OFFING HE SAID THE COMPANY WAS RESTRICTED IN ITS PUBLIC STATEMENTS SO WE WEREN'T ABLE TO CLEAR UP THOSE MISPERCEPTIONS YESTERDAY'S DEFERRAL WAS MADE BECAUSE WE FELT WE COULD NO LONGER REMAIN SILENT MR BROOKSTONE SAID IN CONJUNCTION WITH THE OFFERING PLAN STONE SAID EARLIER ITS LENDERS HAD GRANTED A WAIVER OF INTEREST COVERAGE RATIO REQUIREMENTS FOR THE QUARTER ENDING MARCH 31 AND THE MONTHLY INDEBTEDNESS RATIO REQUIREMENT THROUGH MAY 31 MR STONE SAID THAT ALTHOUGH THE COMPANY THINKS THAT ONE OR MORE EQUITY TRANSACTIONS CAN BE DONE AN ALTERNATIVE HAS ALWAYS BEEN TO PURSUE FURTHER MODIFICATIONS TO OUR CREDIT AGREEMENTS THE COMPANY HE SAID IS NOT IN PAYMENT OR COVENANT DEFAULT AND HAS NEVER BEEN IN DEFAULT AND HE ADDED WHENEVER WE HAVE REQUESTED RELIEF FROM THE BANKS IN THE PAST WE HAVE RECEIVED IT WITH OVERWHELMING SUPPORT STONE CONTAINER SAID THAT IT IS HOLDING TALKS WITH ITS BANK LENDERS TO MODIFY CERTAIN PROVISIONS OF ITS CREDIT AGREEMENT 9304090179 930409 WHO'S NEWS GENERAL MOTORS CORP GENERAL MOTORS CORP DETROIT LOUISE L FRANCESCONI WAS ELECTED A VICE PRESIDENT OF HUGHES AIRCRAFT CO A NEW POST WITH THE AUTO MAKER'S LOS ANGELES SUBSIDIARY MRS FRANCESCONI 40 YEARS OLD CONTINUES IN HER CURRENT POSITION AS VICE PRESIDENT OF FINANCE AND BUSINESS MANAGEMENT FOR HUGHES MISSILE SYSTEMS CO A SUBSIDIARY OF HUGHES SHE ALSO BECOMES A MEMBER OF THE POLICY BOARD OF GM HUGHES ELECTRONICS CORP OF WHICH HUGHES IS AN OPERATING UNIT HUGHES IS AN ELECTRONICS CONCERN SPECIALIZING IN HIGHTECHNOLOGY PRODUCTS FOR MILITARY SCIENTIFIC AND COMMERCIAL USE 9304090178 930409 POLAND ANNOUNCES FIRST PRIVATIZATION OF A KEY STATE BANK BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON POLAND ANNOUNCED THIS WEEK ITS FIRST PRIVATIZATION OF A MAJOR STATEOWNED COMMERCIAL BANK WIELKOPOLSKI BANK KREDITOWY IN A 28 MILLION CAPITALRAISING OPERATION BACKED BY THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ONE OF THE LARGEST OF NINE STATEOWNED REGIONAL COMMERCIAL BANKS CREATED IN 1989 OUT OF THE NATIONAL BANK OF POLAND WBK IS POLAND'S THIRDLARGEST BANK IN TERMS OF CAPITAL OPERATING PRIMARILY IN CENTRALWESTERN POLAND OVER THE PAST FOUR YEARS IN A DRIVE TO IMPROVE THE MARKET BASE OF ITS ACTIVITIES IT HAS INCREASED THE PROPORTION OF LOANS TO PRIVATE BUSINESSES FROM 02 TO 43 OF ITS TOTAL LOAN PORTFOLIO AS A PRELUDE TO PRIVATIZATION IT ALSO HAS HAD ITS ACCOUNTS FULLY AUDITED TO INTERNATIONAL STANDARDS SETTING ASIDE SPECIFIC AND GENERAL PROVISIONS FOR LOSSES ON BAD LOANS EQUIVALENT TO 15 OF ITS LOAN PORTFOLIO PLANS FOR ITS PRIVATIZATION COME AS AN ENCOURAGING SIGN AFTER THE SETBACKS THAT HIT POLAND'S ECONOMIC REFORM PROCESS LAST MONTH WITH THE REJECTION BY THE POLISH PARLIAMENT OF THE GOVERNMENT'S MASS PRIVATIZATION PLAN THIS PROPOSAL FOR THE PRIVATIZATION OF 600 STATE ENTERPRISES IS NOW BEING REVIEWED BY A PARLIAMENTARY COMMISSION WITH A VIEW TO POSSIBLE CHANGES INCLUDING A REDUCTION IN ITS SCOPE TO ONLY 200 COMPANIES IN A FIRST STAGE POLISH FINANCE MINISTER JERZY OSIATYNSKI DESCRIBED THE WBK FLOTATION AS ONE OF THE MOST IMPORTANT STEPS SO FAR IN POLAND'S PRIVATIZATION PROGRAM IN A STATEMENT HE SAID THE GOVERNMENT IS CONFIDENT THAT THE PUBLIC OFFER WILL BE A GREAT SUCCESS I AM PARTICULARLY PLEASED TO OFFER ALL POLES WHO HAVE OFTEN THOUGHT ABOUT OWNING A BANK THE OPPORTUNITY TO BECOME SHAREHOLDERS IN WBK HE ADDED AS PART OF ITS DRIVE TO PROMOTE THE PRIVATIZATION OF EASTERN EUROPE'S BANKING SYSTEM THE EBRD SAID IT WILL INVEST 127 MILLION IN AN ISSUE OF 183 MILLION NEW SHARES BY WBK THE INVESTMENT AT A PRICE OF 115000 ZLOTYS A SHARE WILL GIVE THE EBRD A STAKE EQUIVALENT TO 285 OF WBK'S ENLARGED CAPITAL IN PARALLEL WBK IS TO OFFER A TOTAL OF 174 MILLION EXISTING SHARES EQUIVALENT TO 27 OF ITS ENLARGED CAPITAL TO PRIVATE AND INSTITUTIONAL INVESTORS AT THE SAME PRICE OF 115000 ZLOTYS A SHARE FURTHER SHARES AMOUNTING TO THE EQUIVALENT OF 14 OF THE BANK'S FINAL CAPITAL WILL BE OFFERED TO WBK EMPLOYEES AT A 50 DISCOUNT ON THE PUBLIC OFFER PRICE THE RESULT OF THE OPERATION WILL BE TO REDUCE THE POLISH GOVERNMENT'S STAKE TO JUST OVER 30 THE EBRD SAID ITS INVESTMENT IS CONDITIONAL ON A MINIMUM 460000 SHARES BEING SOLD UNDER THE PUBLIC OFFER HOWEVER AN OFFICIAL OF SCHRODERS THE UK INVESTMENT BANK THAT IS ADVISING POLAND ON THE SALE SAID THIS CONDITION IS EXPECTED TO BE MET EASILY SHARES IN WBK ARE EXPECTED TO BEGIN TRADING ON THE WARSAW STOCK EXCHANGE WITHIN TWO MONTHS OF THE CLOSING OF THE PUBLIC OFFER INVESTMENT BANKERS SAID THERE HAD BEEN STRONG INTEREST FROM FOREIGN INSTITUTIONAL INVESTORS AS WELL AS FROM POLISH CITIZENS CACILIE ROHWEDDER IN BRUSSELS CONTRIBUTED TO THIS ARTICLE 9304090177 930409 OTC FOCUS STOCK PRICES SLIDE LED BY MEDICAL ISSUES ON INVESTOR ANXIETY OVER PROFIT REPORTS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A POSITIVE INFLATION REPORT AND A SURGING BOND MARKET DID LITTLE TO HEARTEN INVESTORS AS OVERTHECOUNTER STOCK PRICES SLID ON EARNINGS CONCERNS MEDICAL ISSUES POSTED STEEP DECLINES AFTER US SURGICAL SAID THAT IT EXPECTS WEAK SECONDQUARTER RESULTS ON THE NEW YORK STOCK EXCHANGE US SURGICAL SHARES PLUMMETED 15 1/4 TO 31 3/8 COMPOUNDING THE SITUATION WAS BIG BOARDLISTED MEDTRONIC WHICH TUMBLED 8 1/4 TO 51 3/4 AFTER HAMBRECHT & QUIST DOWNGRADED THE STOCK AND CUT ITS EARNINGS ESTIMATES THE NASDAQ COMPOSITE INDEX DROPPED 255 POINTS OR 038 TO FINISH AT 66633 DECLINERS TOPPED GAINERS 13411278 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME WAS 188320200 SHARES COMPARED WITH 205690200 THE PREVIOUS DAY US SURGICAL HAS REALLY AFFECTED THE MARKET SAID JOHN NEBENS A SENIOR ANALYST AT ARNESON KERCHEVILLE EHRENBERG & ASSOCIATES ANOTHER WALL STREET DARLING GETS HIT EVERY DAY AND EVERY CUSTOMER IS TRYING TO FIGURE OUT WHO THE NEXT ONE'S GOING TO BE MR NEBENS ADDED THAT APPREHENSION OVER EARNINGS REPORTS PARTICULARLY IN THE TECHNOLOGY SECTOR SENT MARKET PLAYERS SCURRYING FOR THE SIDELINES PEOPLE ARE SELLING FIRST AND ASKING QUESTIONS LATER HE SAID THE ANALYST ADDED THAT A LOT OF MONEY IS STILL FLOATING AROUND WHICH SHOULD INSULATE THE MARKET FROM A SEVERE CORRECTION THE BIG BOARD SAW ANOTHER CHOPPY DAY THE DOW JONES INDUSTRIAL AVERAGE EASED 054 OR 002 TO 339648 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 048 OR 020 TO 24384 THE OTC MARKET LARGELY IGNORED A BOND RALLY BASED ON THE LABOR DEPARTMENT'S REPORT THAT THE CORE INFLATION INDICATOR IN THE MARCH PRODUCER PRICE REPORT ROSE ONLY SLIGHTLY THE PRODUCER PRICE INDEX ROSE BY A MARGINALLYHIGHERTHANEXPECTED 04 LAST MONTH THE TREASURY'S 30YEAR BOND ROCKETED A FULL POINT HIGHER ON THE NEWS DEPRESSING ITS YIELD TO 685 JOE LOFTUS SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS SAID THE INFLATION DATA BECAME ALMOST MEANINGLESS AS US SURGICAL TOOK THE WHOLE HEALTHCARE GROUP APART AND THAT WAS THE ENTIRE STORY HE NOTED THAT TO SOME EXTENT THE STOCK MARKET GOES THROUGH A SIMILAR CYCLE EVERY 90 DAYS ON WORRIES ABOUT CORPORATE PROFITS WHAT HAS SET THIS WEEK APART IS THAT THE MARKET LOOKED LIKE IT HAD STABILIZED FROM THE SHOT LAST WEEK FROM PHILIP MORRIS AND NOW IT GETS HIT AGAIN FOR THE WEEK THE NASDAQ COMPOSITE INDEX HAS GIVEN UP 052 THE DOW JONES INDUSTRIALS GAINED 076 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST ABOUT 014 THE STOCK MARKET WILL BE CLOSED TODAY IN OBSERVANCE OF GOOD FRIDAY IN THE MEDICALRELATED GROUP CHIRON RETREATED 1 7/8 TO 41 1/8 MEDCO CONTAINMENT SERVICES THE MOST ACTIVELY TRADED ISSUE SANK 2 5/8 TO 24 3/4 PURITANBENNETT FELL 1/2 TO 19 3/8 ST JUDE MEDICAL WAS OFF 1 3/4 AT 29 1/2 US HEALTHCARE SLIPPED 2 TO 40 1/2 AND VENTRITEX LOST 1 3/8 TO 19 1/4 STRYKER BASED IN KALAMAZOO MICH FELL 1 1/2 TO 22 1/4 THE COMPANY MAKES SPECIALTY SURGICAL AND MEDICAL PRODUCTS ANALYSTS SAY THEY EXPECT STRONGER RESULTS WITHIN THE MEDICALSUPPLY SECTOR FROM BECTON DICKINSON NELLCOR AND STRYKER ALTHOUGH THEY EXPECT MOST COMPANIES IN THE GROUP TO REPORT SLOWER GROWTH IN FIRSTQUARTER SALES AND EARNINGS NELLCOR SHED 1 7/8 TO 18 3/8 ON THE NEW YORK STOCK EXCHANGE BECTON DICKINSON LOST 3/8 TO 32 3/4 WEAKNESS PERVADED THE TECHNOLOGY GROUP WITH SOME ISSUES FALLING ON INDIVIDUAL COMPANY NEWS APPLE COMPUTER OF CUPERTINO CALIF WAS OFF 3/4 AT 49 3/4 THE COMPANY SAID ITS APPLE USA SUBSIDIDIARY SLASHED PRICES 10 TO 18 ON SELECTED POWERBOOK DUO COMPUTER PRODUCTS IN THE US BMC SOFTWARE OF SUGAR LAND TEXAS SLIPPED 1 1/8 TO 44 5/8 ON HEAVY VOLUME THE COMPANY SAID IT EXPECTS TO REPORT THAT REVENUE PERCENTAGE GROWTH IN ITS JUSTENDED FISCALFOURTH QUARTER FOR INTERNATIONAL LICENSES WAS IN THE MIDTEENS THE PERCENTAGE GROWTH WAS IN THE MID20S FOR NORTH AMERICA THE COMPANY ATTRIBUTES LESSTHANEXPECTED FOURTHQUARTER REVENUE TO NOT GETTING AS MUCH PRODUCTIVITY AS IT PROJECTED FROM ITS BEEFEDUP SALES FORCE BMC BACKED ANALYSTS' FISCAL 1994 EARNINGS ESTIMATES OF 3 TO 325 A SHARE DELL COMPUTER DROPPED 1 1/2 TO 32 1/8 AFTER THE WALL STREET JOURNAL REPORTED THAT THE AUSTIN TEXAS COMPANY WILL CUT PRICES AS MUCH AS 18 ON MOST OF ITS MODELS IN VARIOUS EUROPEAN COUNTRIES INTEL FELL 1 TO 113 MICROSOFT LOST 1 1/4 TO 89 ON THE UP SIDE MCI COMMUNICATIONS GAINED 1 1/2 TO 45 3/4 IN ACTIVE TRADING A PAINEWEBBER ANALYST UPGRADED MCI TO BUY FROM NEUTRAL MOBILE TELECOMMMUNICATIONS OF JACKSON MISS WAS 3/4 STRONGER AT 18 1/2 AFTER IT ANNOUNCED THAT IT HAD 263800 PAGING AND VOICEMESSAGING UNITS IN SERVICE WORLDWIDE AS OF MARCH 31 A 34 INCREASE FROM 1992'S FIRST QUARTER PEOPLES TELEPHONE OF MIAMI ADDED 1 1/8 TO 13 3/8 THE COMPANY SAID IT HAS ENTERED INTO TWO TELEPHONEPLACEMENT AGREEMENTS EXPECTED TO GENERATE A TOTAL OF 131 MILLION IN GROSS REVENUE ALSO ON THE MOSTACTIVES LIST WAS TELECOMMUNICATIONS WHICH FELL 1/2 TO 17 3/4 STAPLES DECLINED 2 1/2 TO 29 1/2 ON HEAVY VOLUME AFTER THE FRAMINGHAM MASS OFFICEPRODUCTS RETAIL CHAIN SAID HENRY J NASELLA ITS PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED FOSSIL A MAKER OF DESIGNER WATCHES AND OTHER ACCESSORIES CLOSED AT 8 1/4 ITS INITIAL PUBLIC OFFERING PRICE WAS 7 1/2 A SHARE MOLTEN METAL TECHNOLOGY WAS UNCHANGED AT 14 AFTER A SECOND SESSION OF ACTIVE TRADING THE WALTHAM MASS COMPANY JUMPED 3 1/2 WEDNESDAY THE COMPANY HAD SAID THAT IT HAS ENTERED INTO A 200 MILLION EIGHTYEAR PACT WITH THE ENERGY DEPARTMENT TO DEVELOP ITS CATALYTICEXTRACTION PROCESS TO TREAT THE AGENCY'S HAZARDOUS WASTES 9304090176 930409 CANON UNIT IN CHINA PROVIDES PICTURE OF WORKERS CHAFED BY MARKET ECONOMY BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG WHEN CANON INC BEGAN MANUFACTURING CAMERAS IN CHINA'S ZHUHAI SPECIAL ECONOMIC ZONE IN 1990 THE JAPANESE COMPANY COULD PICK AND CHOOSE AMONG THE MANY LOCAL WORKERS JOSTLING FOR WELLPAYING JOBS AT ITS MODEL FACTORY THREE YEARS LATER IT'S A DIFFERENT STORY MARCH 31 AFTER THE BREAKDOWN OF NEGOTIATIONS WITH MANAGEMENT ON PAY INCREASES SOME 800 OF CANON ZHUHAI INC'S 1000 WORKERS BEGAN A WORK STOPPAGE THAT HALTED PRODUCTION FOR THREE DAYS IN TOKYO A CANON SPOKESMAN SAID ALL THE WORKERS WHO JOINED THE ACTION HAD RETURNED TO THEIR POSTS BY THE FOLLOWING MONDAY MORNING AN OFFICIAL IN THE ZHUHAI LABOR DEPARTMENT SAID REPRESENTATIVES OF BOTH SIDES WILL RESUME TALKS NEITHER LONG NOR PARTICULARLY DRAMATIC THE INCIDENT NONETHELESS BRINGS INTO SHARP FOCUS A CHANGE IN CHINESE WORKERS' ATTITUDES IN RECENT YEARS ECONOMIC REFORM HAS UNLEASHED INFLATION THAT NOW FAR EXCEEDS 10 IN MAJOR CITIES AND THE BOOMING SOUTH CLASHING HEADON WITH WORKERS' EXPECTATIONS OF A BETTER LIFE UNDER THE SOCALLED SOCIALIST MARKET ECONOMY AS CHINA'S LABOR MARKET MATURES I'D SAY INCREASED LABOR ACTIVITY IS AN INEVITABLE TREND WHICH MUST FOLLOW SAYS DAVID WHITTAL AN INVESTMENT ANALYST AT BARING SECURITIES HONG KONG LTD THERE WILL BE SOME DISCORD AS PEOPLE GET DISPLACED FROM THE IRON RICE BOWL YOU CAN ALSO EXPECT LABORERS TO GET MORE DEMANDING AND SELECTIVE IN THE JOBS THEY'LL ACCEPT AS JOB MOBILITY GROWS IN THE PAST YEAR CHINA HAS WITNESSED A GROWING NUMBER OF STRIKES AND OTHER SIGNS OF LABOR DISSATISFACTION EIGHTEEN STRIKES WERE REPORTED IN GUANGDONG PROVINCE ALONE LAST YEAR AT CANON ZHUHAI THE MAIN ISSUE FOR MOST WORKERS IS PAY A JOB AT THE COMPANY'S MODERN PLANT IN THE BEILING INDUSTRIAL DISTRICT WAS ONCE CONSIDERED A PRESTIGE POSITION THAT PAID RELATIVELY WELL BUT INFLATION HAS EATEN INTO WAGES IN THE PAST FEW YEARS OFFICIALLY CHINA'S NATIONAL INFLATION RATE WAS 147 IN JANUARY BUT THE FIGURE IS MUCH HIGHER IN FASTGROWING PLACES SUCH AS ZHUHAI IN THIS BOOMTOWN ADJACENT TO THE PORTUGUESE ENCLAVE OF MACAO BUS FARES ROSE TO 080 YUAN 14 CENTS FROM 050 YUAN LAST MONTH WHILE A PACK OF FOREIGN CIGARETTES NOW COSTS 630 YUAN UP FROM 530 YUAN IN JANUARY FROM THE OUTSIDE OUR COMPANY LOOKS GOOD AND THINGS ARE GENERALLY OK SAYS A 21YEAROLD WOMAN WHO WORKS FOR CANON ZHUHAI BUT INFLATION HAS HAD A BIG IMPACT AND WITH THE PAY THEY'RE OFFERING NOW YOU JUST DON'T HAVE ENOUGH MONEY SHE SAYS THAT MANY OTHER ZHUHAI COMPANIES INCLUDING STATERUN ENTERPRISES INCREASED MONTHLY WAGES BY BETWEEN 100 YUAN AND 200 YUAN TO HELP EMPLOYEES COPE WITH RISING LIVING COSTS BUT CANON'S OFFER OF A 7 RAISE ABOUT 40 YUAN FOR FACTORYFLOOR WORKERS ALREADY MAKING ABOUT 600 YUAN WOULDN'T BE ENOUGH TO COVER TRANSPORTATION COSTS SHE SAYS CANON ZHUHAI WORKERS WANT A 30 TO 50 INCREASE IN BASIC WAGES BUT THE LABOR DEPARTMENT OFFICIAL SAYS THE COMPANY'S CURRENT WAGES ALREADY ARE AT THE MIDDLE TO HIGH END OF THE SALARY SCALE IN THE SPECIAL ECONOMIC ZONE FOR MANY CANON ZHUHAI WORKERS PART OF THE PROBLEM LIES IN MAKING THE TRANSITION FROM A SOCIALIST SYSTEM THAT FOR DECADES OFFERED CRADLETOGRAVE SECURITY TO THE UNCERTAINTY OF A MARKETORIENTED SYSTEM WITH INFLATION PICKING UP THEY ARE SEEING FOR THE FIRST TIME WHAT WORK OUTSIDE THE STATE SYSTEM MEANS FOR THEIR FUTURE CANON ZHUHAI PROVIDES FREE LUNCHES AND TRANSPORT TO AND FROM WORK FOR ITS WORKERS IT ALSO OFFERS HOUSING TO SOME EMPLOYEES MOSTLY MANAGERS WHO HAVE COME FROM OTHER PARTS OF CHINA BUT SOME LOCALLY HIRED WORKERS WHO NOW LIVE WITH THEIR PARENTS WONDER WHETHER THEY WILL BE ABLE TO AFFORD THEIR OWN APARTMENTS AFTER THEY GET MARRIED THE PROBLEM HAS BECOME MORE WORRISOME AS HOUSING PRICES HAVE SURGED SINCE THE GOVERNMENT BEGAN OPENING THE REALESTATE MARKET TO PRIVATE INVESTMENT AND DEVELOPMENT OTHER WORKERS COMPLAIN THAT THEY HAVE TO WORK MUCH HARDER AT A FOREIGNINVESTED COMPANY THAN AT A STATE ENTERPRISE WITHOUT ENJOYING ADDITIONAL BENEFITS AND THERE IS GROWING RESENTMENT AMONG SOME THAT FOREIGN COMPANIES ARE ENRICHING THEMSELVES IN CHINA AT THE EXPENSE OF LOCAL WORKERS THE CANON ZHUHAI MANAGER POINTS OUT THAT THE FACTORY IS PUSHING AHEAD WITH PLANS TO EXPAND ITS OPERATIONS DESPITE CLAIMS THAT IT CAN'T AFFORD TO PAY EMPLOYEES MORE CANON MANAGEMENT IN TOKYO DECLINED TO SAY WHETHER ITS ZHUHAI FACTORY IS MAKING MONEY HONG KONG AND TAIWANESE FIRMS OPERATING IN CHINA HAVE FACED SIMILAR CHARGES OF EXPLOITATION BUT IF WORKERS SOMETIMES WAX NOSTALGIC FOR THE SOCIALIST SYSTEM IT IS ECONOMIC REFORM THAT HAS HELPED CHANGE THEIR ATTITUDES TOWARD WORK AS CHINESE GAIN MORE WEALTH AND EXPOSURE TO OTHER LIFESTYLES THEIR TASTES ARE CHANGING AND THEIR STANDARDS OF LIVING RISING WHEREAS WORKERS HAD LITTLE JOB MOBILITY UNDER THE STATE SYSTEM FOREIGN JOINT VENTURES AND PRIVATE CHINESE COMPANIES OFFER MYRIAD OPPORTUNITIES WORKERS WHO AREN'T HAPPY WITH ONE JOB CAN EASILY FIND ANOTHER DAVID P HAMILTON IN TOKYO CONTRIBUTED TO THIS ARTICLE 9304090175 930409 TAIWAN TRADE SURPLUS NARROWS TAIPEI TAIWAN TAIWAN'S MERCHANDISE TRADE SURPLUS NARROWED 30 TO 880 MILLION US DOLLARS IN MARCH FROM 125 BILLION IN THE YEAREARLIER MONTH THE MINISTRY OF FINANCE SAID THE MINISTRY ATTRIBUTED THE NARROWING OF MARCH'S SURPLUS TO A 15 RISE IN IMPORTS FROM THE YEAREARLIER MONTH ESPECIALLY A 21 LEAP IN CAPITALEQUIPMENT IMPORTS 9304090172 930409 WOODWARD'S REACHES MERGER AGREEMENT WITH HUDSON'S BAY VANCOUVER BRITISH COLUMBIA WOODWARD'S LTD SAID IT REACHED A FINAL AGREEMENT WITH HUDSON'S BAY CO TO MERGE WITH A HUDSON'S BAY RETAILING UNIT ZELLERS THE TWO RETAILING CONCERNS ANNOUNCED LAST MONTH THAT THEY HAD SIGNED A LETTER OF INTENT TO NEGOTIATE A MERGER WOODWARD'S HAS BEEN OPERATING UNDER COURT PROTECTION FROM ITS CREDITORS SINCE LAST DECEMBER UNDER THE TERMS OF THE FINAL AGREEMENT SECURED CREDITORS OF WOODWARD'S WILL BE PAID IN FULL WHILE TRADE AND OTHER GENERAL CREDITORS WILL BE OFFERED 37 CANADIAN CENTS 293 US CENTS FOR EACH C1 OF THE PRINCIPAL OF THEIR CLAIMS HOLDERS OF WOODWARD'S PUBLICLY HELD 9 AND 10 NOTES WILL BE OFFERED 32 CANADIAN CENTS FOR EACH C1 OF THEIR CLAIMS WHILE SHAREHOLDERS WOULD RECEIVE 35 CANADIAN CENTS A SHARE WOODWARD'S SAID THE MERGER AGREEMENT AND PLAN WILL BE FILED WITH THE SUPREME COURT OF BRITISH COLUMBIA THIS WEEK SUBJECT TO COURT APPROVAL CREDITOR AND SHAREHOLDER MEETINGS TO VOTE ON THE PLAN COULD BE HELD MAY 3 OR MAY 4 APPROVAL OF THE PLAN IS REQUIRED BY A MAJORITY OF CREDITORS LANDLORDS NOTEHOLDERS AND SHAREHOLDERS AS WELL AS THE COURT THE MERGER COULD TAKE EFFECT IN EARLY JUNE THE COMPANIES SAID SUBJECT TO COURT APPROVAL WOODWARD'S SAID HUDSON'S BAY WILL OVERSEE WOODWARD'S DAYTODAY BUSINESS OPERATIONS DURING THE INTERIM PERIOD WHILE AWAITING THE REQUIRED APPROVALS AT NO FEE WOODWARD'S IS A VANCOUVERBASED RETAILING CONCERN HUDSON'S BAY WHICH OWNS AND OPERATES SEVERAL DEPARTMENT STORE CHAINS IS BASED IN TORONTO 9304090171 930409 COMMODITIES GOLD FUTURES PRICES FINISH WEEK DOWN SHARPLY RAISING FEARS THAT RECENT RALLY MAY BE OVER BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES ENDED SHARPLY LOWER FOR THE WEEK AS INFLATION FEARS APPEAR TO HAVE SUBSIDED FOR THE NEAR TERM TRADERS AND ANALYSTS SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY SKIDDED 80 CENTS TO CLOSE AT 33890 IN MODERATE VOLUME ON WEDNESDAY THE ACTIVELY TRADED GOLD FUTURES CONTRACT CLOSED AT 33970 UP 40 CENTS THE CONTRACT ENDED LAST WEEK ON A RECENT SETTLEMENT HIGH OF 34230 ON SIGNS AMONG OTHER THINGS THAT INFLATION MAY HAVE BEEN PICKING UP AT THE COMMODITYPRICE LEVEL TECHNICALLY IT DOESN'T LOOK VERY PROMISING FOR GOLD SAID SCOTT MEYERS A SENIOR COMMODITY ANALYST WITH REDEL TRADING IN NEW YORK WITH INFLATIONARY FEARS DIMINISHING WE NEED SOLID SETTLEMENTS ABOVE 340 AGAIN TO GET THIS THING UP AND RUNNING MR MEYERS SAID HE PREDICTED THAT GOLD WOULD RANGE BETWEEN 337 TO 341 IN TRADING SESSIONS NEXT WEEK HUNT TAYLOR MANAGING DIRECTOR OF REYNWOOD TRADING CO IN SHORT HILLS NJ CONCURRED THAT GOLD'S RECENT RALLY MAY HAVE BEEN SHORTLIVED THE POTENTIAL IMPLICATION OF THIS WEEK'S RETREAT IS THAT IT'S ANOTHER FALSE START FOR THE GOLD MARKET HE SAID GOLD IS PARTICULARLY SUSCEPTIBLE TO EMOTIONAL FACTORS MR TAYLOR SAID ADDING WITHOUT THE SUPPORT OF STRONG NUMBERS IN THE CORE RATE OF INFLATION YOU DON'T CREATE THE EMOTIONAL CLIMATE IN WHICH PEOPLE WANT TO OWN GOLD GOLD WHICH TENDS TO STRENGTHEN ON INFLATIONARY EXPECTATIONS RETREATED IN PART ON NEWS THAT THE CORE INFLATION RATE AT THE PRODUCER PRICE LEVEL FOR MARCH CAME IN BELOW MARKET EXPECTATIONS DEALERS SAID THE LABOR DEPARTMENT REPORTED YESTERDAY THAT THE PRODUCER PRICE INDEX ROSE 04 DURING MARCH BUT THAT THE MAJORITY OF THE INCREASE WAS BECAUSE OF A 13 JUMP IN ENERGY PRICES EXCLUDING ENERGY AND EQUALLY VOLATILE FOOD PRICES THE PPI CORE RATE ROSE A MERE 01 EXPECTATIONS FOR THE CORE RATE WERE AS HIGH AS 03 BETTE RAPTOPOULOS A SENIOR ANALYST WITH PRUDENTIAL SECURITIES IN NEW YORK SAID THE NEW YORK GOLD FUTURES MARKET HAD OPENED HIGHER YESTERDAY ON EXPECTATIONS OF A LARGE INCREASE IN THE PPI BUT QUICKLY DROPPED ON DISAPPOINTMENT THAT THE INFLATION RATE WAS LOW SHE SAID THAT THE PPI HOWEVER WAS ONLY PART OF THE PICTURE THE CPI CONSUMER PRICE INDEX NUMBER COMES OUT FRIDAY SO WE WILL ONCE AGAIN HAVE TO ASSESS THE INFLATION PICTURE ANOTHER INFLATIONARY BAROMETER THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS MOVED LOWER YESTERDAY CLOSING AT 20920 WELL BELOW LAST WEEK'S CLOSE OF 21320 THE SOFTER TONE IN THE CRB INDEX THIS WEEK HAS CONTRIBUTED SIGNIFICANTLY TO GOLD'S WEAKER PERFORMANCE TRADERS SAID SOME TRADERS SAID A NUMBER OF COMMODITY FUNDS LIQUIDATED LONG POSITIONS OR WAGERS THAT THE PRICE OF GOLD WILL CLIMB BECAUSE THEY DIDN'T WANT TO MAINTAIN THOSE POSITIONS OVER THE LONG HOLIDAY WEEKEND AMID FAIRLY VOLATILE MARKET CONDITIONS COMMODITY MARKETS IN NEW YORK ARE CLOSED TODAY FOR GOOD FRIDAY GEORGE MILLINGSTANLEY AN ANALYST WITH SHEARSON LEHMAN BROTHERS IN NEW YORK SAID THE METAL COULD BE VULNERABLE TO SELLING BY MIDDLE EAST SYNDICATES NEXT WEEK AMID THE WEAKER TONE BUT NOT ALL ANALYSTS AND DEALERS ARE WRITING OFF THE CURRENT RALLY AS A ONEWEEK WONDER FOR GOLD WHICH CONTINUES TO ENJOY STRONG DEMAND FROM THE FAR EAST MS RAPTOPOULOS FOR ONE SAYS PERSISTENT INSTABILITY IN FOREIGN EXCHANGE MARKETS PARTICULARLY THE DOLLAR'S SLIDE AGAINST THE YEN AND PROBLEMS WITHIN THE EUROPEAN EXCHANGE RATE MECHANISM REMAIN BULLISH FOR GOLD IN OTHER COMMODITY MARKETS YESTERDAY COPPER COPPER FUTURES RALLIED ENDING AN ABRUPT SLIDE THIS WEEK ON PANIC SELLING AMID SLUMPING OVERSEAS DEMAND ON NEW YORK'S COMMODITY EXCHANGE COPPER FOR MAY DELIVERY ROSE 105 CENTS TO SETTLE AT 8935 CENTS A POUND IN WHAT TRADERS SAID WAS A CORRECTION TO OVERSOLD MARKET CONDITIONS ON WEDNESDAY MAY COPPER PLUNGED 42 CENTS TO SETTLE AT 883 CENTS THE LOWEST LEVEL SINCE AUGUST 1988 THESE LOW PRICES HAVE BROUGHT IN SOME HEDGING BY COPPER FABRICATORS SAID FRED DEMLER SENIOR METAL ECONOMIST WITH PAINEWEBBER IN NEW YORK WE ALSO SAW SIGNIFICANT JAPANESE BUYING I THINK THERE'S SOME CONFIDENCE RETURNING TO THE MARKET HE ADDED ENERGY PETROLEUM FUTURES PRICES FELL IN ACTIVE TRADING ON THE NEW YORK MERCANTILE EXCHANGE DURING THE LAST TRADING SESSION BEFORE THE LONG EASTER WEEKEND AND AN INFORMAL MEETING NEXT WEEK OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES MOST MARKET OBSERVERS HAD EXPECTED THE SHORT TRADING WEEK THE EXCHANGE IS CLOSED TODAY IN OBSERVANCE OF GOOD FRIDAY TO END QUIETLY INSTEAD WEDNESDAY'S REPORT FROM THE AMERICAN PETROLEUM INSTITUTE ON US INVENTORIES WAS VIEWED AS BEARISH AND COMBINED WITH WIDESPREAD CONCERNS THAT OPEC'S OVERPRODUCTION COULD WORSEN SERVED TO PUSH MAY CRUDEOIL PRICES 15 CENTS A BARREL LOWER TO 2022 THE PESSIMISM HIT PRODUCTS AS WELL WITH MAY HEATING OIL LOSING 056 CENT TO SETTLE AT 5599 CENTS A GALLON AND GASOLINE FOR MAY DELIVERY OFF 033 CENT AT 5998 CENTS A GALLON LUMBER LUMBER FUTURES PRICES PLUNGED FOR THE THIRD CONSECUTIVE DAY AT THE CHICAGO MERCANTILE EXCHANGE THE PRICE OF THE LUMBER CONTRACT FOR MAY DELIVERY FELL 1360 TO 35710 PER THOUSAND BOARD FEET AFTER PLUNGING BY THE DAILY PRICEMOVE LIMIT ON TUESDAY AND WEDNESDAY ANALYSTS SAID THE MOVE WAS PART OF THE CONTINUING CORRECTION OF LUMBER PRICES WHICH MANY BELIEVE ROSE TOO HIGH DURING A SURGE EARLY THIS YEAR IN JANUARY AND FEBRUARY BUYING BY HOME BUILDERS FOR THE SPRING CONSTRUCTION SEASON AND A SHORTAGE OF SUPPLY FROM LUMBER MILLS IN THE PACIFIC NORTHWEST AND THE CANADIAN PROVINCE OF BRITISH COLUMBIA COMBINED TO CREATE THE GREATEST BULL MARKET LUMBER TRADERS HAD EVER SEEN RECENTLY HOWEVER DEMAND FOR LUMBER HAS FALLEN OFF PUSHING PRICES DOWN SOME TRADERS SPECULATE THAT PRICES WILL LEVEL OFF IN THE RANGE OF 330 TO 335 PER THOUSAND BOARD FEET 9304090170 930409 ELF PLANS MALAYSIAN REFINERY KUALA LUMPUR MALAYSIA SOCIETE NATIONALE ELF AQUITAINE THE FRENCH INTERNATIONAL OIL COMPANY IS PLANNING TO SET UP A PETROCHEMICAL REFINERY IN MALAYSIA SOON FRENCH AMBASSADOR TO MALAYSIA FREDERICK GRASSEL SAID HE SAID THE MALAYSIAN GOVERNMENT HAD APPROVED THE SETTING UP OF THE REFINERY AND ELF WAS EXPECTED TO INVEST ABOUT TWO BILLION MALAYSIAN DOLLARS OR RINGGIT 775 MILLION IN THE PROJECT ELF WAS NEGOTIATING WITH A LOCAL COMPANY TO ESTABLISH THE PROJECT AS A JOINT VENTURE MR GRASSEL SAID AFTER TALKS WITH PENANG STATE CHIEF MINISTER KOH TSU KOON IN PENANG 186 MILES NORTHWEST OF KUALA LUMPUR THE NATIONAL NEWS AGENCY BERNAMA REPORTED 9304090169 930409 MICROTEL SLATES EXPANSION ROCHESTER NY MICROTEL FRANCHISE & DEVELOPMENT CORP WHOSE FOUNDING CHAIRMAN DIED IN DECEMBER IS CARRYING ON BUSINESS BY EXPANDING ITS BUDGET MOTEL CHAIN INTO THREE NEW STATES THIS MONTH IT'S BREAKING GROUND AT THREE SITES IN TENNESSEE IN KNOXVILLE KINGSPORT AND GATLINBURG IN MAY IT WILL OPEN ITS 10TH HOTEL A 100ROOM UNIT IN SOUTH CHARLESTON WVA IN JUNE IT WILL OPEN A 102ROOM UNIT IN ALLENTOWN PA THE DECEASED CHAIRMAN LOREN ANSLEY INVENTED THE CONCEPT OF RENTING NINEFOOTBY12FOOT ROOMS AT 20 TO 30 A NIGHT 9304090168 930409 AUDIO/VIDEO AFFILIATES SALES DAYTON OHIO AUDIO/VIDEO AFFILIATES INC SAID MARCH SALES FOR STORES OPEN MORE THAN ONE YEAR ROSE 6 TO 151 MILLION FROM 143 MILLION A YEAR EARLIER TOTAL SALES DURING MARCH ROSE 21 TO 175 MILLION FROM 145 MILLION THE SPECIALTY RETAILER HAD 107 CONSUMER ELECTRONICS AND APPLIANCE STORES DURING MARCH 1993 UP FROM 97 A YEAR EARLIER 9304090167 930409 TODAY'S MAN SALES RISE MOORESTOWN NJ TODAY'S MAN INC SAID SALES FOR THE FIVE WEEKS ENDED SATURDAY ROSE 22 TO 109 MILLION WHILE SAMESTORE SALES FELL 2 FOR THE TWO MONTHS ENDED SATURDAY SALES CLIMBED 23 TO 184 MILLION WHILE SAMESTORE SALES ROSE 13 THE COMPANY OPERATES 18 MENSWEAR SUPERSTORES IN NORTHEASTERN MARKETS 9304090166 930409 BMW IS CONSIDERING BUILDING HATCHBACK IN COMPACT CAR LINE SPECIAL TO THE WALL STREET JOURNAL MUNICH GERMANY BAYERISCHE MOTOREN WERKE AG IS CONSIDERING PRODUCTION OF A HATCHBACK MODEL THAT WOULD BECOME A NEW COMPETITOR TO VOLKSWAGEN AG'S GOLF SERIES OF COMPACT CARS BMW HAS NEVER MADE A SECRET OF ITS INTEREST IN A POSSIBLE VARIANT OF ITS COMPACT 3SERIES MODELS A BMW SPOKESMAN SAID THE INTRODUCTION OF SUCH A CAR IS A WHOLE DIFFERENT QUESTION HE ADDED THE STATEMENT CAME IN RESPONSE TO A REPORT IN THE GERMAN MOTOR PRESS THAT DEVELOPMENT OF THE NEW MODEL IS FAR ENOUGH ALONG THAT PRODUCTION COULD BEGIN IN JUNE 1994 ACCORDING TO THE MAGAZINE AUTO MOTOR UND SPORT THE NEW BMW TENTATIVELY HAS BEEN NAMED KOMPAKT316I AND COULD ACCOUNT FOR 25 OF TOTAL PRODUCTION IN THE 3SERIES LINE THE 3SERIES ACCOUNTS FOR MORE THAN 60 OF BMW SALES AND HAS BEEN THE COMPANY'S BESTSELLING MODEL THE NEW CAR WOULD ESSENTIALLY BE A HATCHBACK VERSION OF THE 316I COMPACT SEDAN WITH A 16LITER FOURCYLINDER ENGINE AND A PRICE OF ABOUT 32000 MARKS 19760 THE MAGAZINE SAID BMW ALSO SIGNED A CONTRACT WITH A VIETNAMESE IMPORTING FIRM SO IT CAN BREAK INTO THAT MARKET THE SPOKESMAN SAID THE CONTRACT WITH VIETNAM MOTORS CORP INVOLVES IMPORTING CARS BUILT IN THE COMPANY'S GERMANBASED FACTORIES VIETNAM HAS HIGH IMPORT TARIFFS AND IF DEMAND PROVES STRONG ENOUGH BMW MIGHT AVOID THOSE TARIFFS BY SHIPPING ALL THE PREMANUFACTURED COMPONENTS TO VIETNAM WHERE THEY WILL BE ASSEMBLED LOCALLY SUCH KIT ASSEMBLIES ARE COMMON FOR GERMAN AUTO MAKERS IN THEIR FOREIGN OPERATIONS BMW ALREADY ASSEMBLES AUTOMOBILE KITS IN THAILAND URUGUAY MALAYSIA AND INDONESIA BUT EXPORTS ITS OTHER CARS FROM GERMANY TO ALL ITS OTHER MARKETS LAST YEAR BMW ANNOUNCED PLANS TO BUILD A PASSENGER CAR PLANT IN SPARTANBURG SC SINCE THEN RIVAL MERCEDESBENZ AG ANNOUNCED SIMILAR PLANS FOR A US PRODUCTION SITE AUDI AG IS ALSO EXPLORING PRODUCTION IN THE US NEITHER MERCEDES A UNIT OF DAIMLERBENZ AG NOR AUDI A UNIT OF VOLKSWAGEN HAVE ANNOUNCED LOCATIONS FOR THEIR PLANTS 9304090165 930409 HILO AUTOMOTIVE SALES INCREASE HOUSTON HILO AUTOMOTIVE INC SAID MARCH SALES ROSE 54 TO 165 MILLION FROM 157 MILLION BUT SAMESTORE SALES IN THE PERIOD FELL 39 9304090164 930409 SOLO SERVE POSTS SALES RISE SAN ANTONIO SOLO SERVE CORP SAID SALES FOR THE FIVE WEEKS ENDED SATURDAY INCREASED 15 TO 153 MILLION FROM 133 MILLION A YEAR AGO THE OFFPRICE RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR DECREASED 23 FOR THE NINE WEEKS ENDED SATURDAY SALES INCREASED 15 TO 259 MILLION FROM 226 MILLION A YEAR AGO COMPARABLESTORE SALES DECREASED 46 9304090163 930409 UNITED RETAIL GROUP INC ROCHELLE PARK NJ UNITED RETAIL GROUP INC SAID MARCH SALES ROSE 21 TO 305 MILLION WHILE COMPARABLESTORE SALES FELL 2 THE RETAILER OF LARGESIZE WOMEN'S CLOTHING SAID SALES FOR THE FIRST TWO MONTHS OF THE FISCAL YEAR ROSE 23 TO 529 MILLION WHILE COMPARABLESTORE SALES DECLINED 1 9304090162 930409 APONTE FORMER BROKER AT SMITH BARNEY FACES US CHARGES OF FRAUD NEW YORK FEDERAL PROSECUTORS CHARGED A FORMER BROKER AT SMITH BARNEY HARRIS UPHAM & CO WHO LEFT TO SET UP HIS OWN MONEY MANAGEMENT COMPANY WITH DEFRAUDING SOME CLIENTS WHO MOVED THEIR ACCOUNTS TO HIS FIRM PROSECUTORS SAID THAT ALISANDRO APONTE PERSUADED THREE OF HIS CLIENTS TO LIQUIDATE THEIR ACCOUNTS AT SMITH BARNEY A UNIT OF PRIMERICA CORP AND GO TO HIS NEW FIRM ASHLAND MANAGEMENT INC BUT INSTEAD OF INVESTING THE MONEY FOR THE CLIENTS MR APONTE ALLEGEDLY SPENT 177017 ON PERSONAL AND BUSINESS EXPENSES PROSECUTORS CHARGE MR APONTE 42 YEARS OLD IS CHARGED WITH 16 COUNTS OF FRAUD ONE COUNT OF PERJURY AND THREE COUNTS OF OBSTRUCTION OF JUSTICE MR APONTE WAS ARRESTED IN SAN FRANCISCO AND HAS BEEN DETAINED IN JAIL PENDING A BAIL HEARING SCHEDULED FOR TODAY PROSECUTORS SAID BRIAN BERSON A COURTAPPOINTED ATTORNEY WHO REPRESENTED MR APONTE AT HIS FIRST APPEARANCE IN FEDERAL COURT IN SAN FRANCISCO SAID THAT THERE WON'T BE MUCH OF A DISPUTE THAT MR APONTE OWES MONEY TO HIS CLIENTS BUT THERE WILL BE A DISPUTE THAT THERE WAS CRIMINAL INTENT LAST YEAR MR APONTE SETTLED WITHOUT ADMITTING OR DENYING THE CHARGES A CIVIL LAWSUIT BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION THAT SUIT INVOLVED ONE OF THE THREE ALLEGED VICTIMS IN THE CRIMINAL INDICTMENT UNDER THE TERMS OF THAT SETTLEMENT MR APONTE AGREED TO PAY BACK ONE OF HIS CLIENTS MORE THAN 100000 AND TO PAY A CIVIL PENALTY OF 103941 FEDERAL PROSECUTORS CHARGED ALISANDRO APONTE WITH DEFRAUDING SOME CLIENTS OF HIS COMPANY ASHLAND CAPITAL MANAGEMENT INC AN ARTICLE FRIDAY MISTAKENLY IDENTIFIED THE COMPANY AS ASHLAND MANAGEMENT INC WHICH HAS NO TIES TO MR APONTE 9304090161 930409 AIRBUS INDUSTRIE SEES MIDDLE EAST REGION ACQUIRING 550 PLANES MANAMA BAHRAIN AIRBUS INDUSTRIE FORECAST HERE THAT AIRLINES IN THE MIDDLE EAST WILL ACQUIRE 550 PLANES OVER THE NEXT 20 YEARS OF WHICH IT HOPED TO CAPTURE A GOOD SLICE THE REGION'S SHARE OF WORLD TRAFFIC IS MUCH HIGHER THAN ANY OTHER REGION WHICH MEANS THAT PEOPLE HERE ARE TRAVELING MORE THAN THE PEOPLE IN OTHER REGIONS DIDIER LENORMAND MARKETING PLANNING MANAGER OF THE COMPANY TOLD A NEWS CONFERENCE THIS WEEK IN BAHRAIN AS PART OF A PROMOTION TOUR THE MIDDLE EAST SHARE IS ABOUT 5 OF THE MARKET FOR THE TOTAL FLEET IN THE COMING 20 YEARS ABOUT 550 MR LENORMAND SAID AIRBUS INDUSTRIE IN TOULOUSE FRANCE IS A CONSORTIUM MADE UP OF AEROSPATIALE OF FRANCE BRITISH AEROSPACE PLC CONSTRUCCIONES AERONAUTICAS SA OF SPAIN AND DEUTSCHE AIRBUS A UNIT OF GERMANY'S DAIMLERBENZ AG REGIONAL AIRLINES CURRENTLY OPERATE A TOTAL OF ABOUT 300 PLANES OF WHICH MORE THAN A THIRD WERE ACQUIRED FROM AIRBUS INDUSTRIE ALL TOGETHER WE'VE SOLD 127 AIRCRAFT TO 13 AIRLINES WITHIN THE MIDDLE EAST WE ACTUALLY STARTED IN THE REGION WITH IRAN AIR IN 1978 AND SINCE THEN WE'VE ADDED MANY MORE CARRIERS SAID DAVID VELLUPILLAI MANAGER OF PRESS RELATIONS OF THE COMPANY EGYPTAIR FOLLOWED IN 1980 HE SAID SINCE ITS INCEPTION IN 1985 DUBAI'S EMIRATES AIRLINE HAS USED AIRBUS AIRCRAFT FOR ITS FLEET GULF AIR MIDDLE EAST AIRLINES AND SHOROUK AIR WHICH IS A JOINT VENTURE BETWEEN EGYPTAIR AND KUWAIT AIRWAYS BECAME NEW AIRBUS OPERATORS IN 1992 SAUDI ARABIA HAS YET TO MODERNIZE ITS FLEET SAID MR VELLUPILLAI THEY HAVE ORDERED AIRCRAFT TODAY THEY NEED TO BUY SOME NEW AIRCRAFT FOR TOMORROW I DON'T KNOW IF THEY WILL BE OUR AIRCRAFT OR NOT BUT WE ARE CERTAINLY HOPING AND TRYING THAT THEY WILL BE OUR AIRCRAFT HE SAID 9304090160 930409 FINNISH JOBLESS RATE RISES HELSINKI FINLAND FINLAND'S UNEMPLOYMENT RATE REACHED 18 OF THE LABOR FORCE IN FEBRUARY UP FROM 166 THE PREVIOUS MONTH ACCORDING TO THE CENTRAL STATISTICAL OFFICE THE LATEST INCREASE CAME DURING A DEEP RECESSION THAT HAS FORCED MANY SMALL AND MEDIUMSIZE BUSINESSES TO CLOSE DOWN 9304090159 930409 CANADIAN HOUSING STARTS OTTAWA CANADIAN HOUSING STARTS DECLINED 03 IN MARCH TO A SEASONALLY ADJUSTED ANNUAL RATE OF 150600 FROM A FEBRUARY RATE OF 151000 CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY SAID NEW CONSTRUCTION HAS REMAINED LOW SINCE THE START OF THE YEAR PARTLY BECAUSE OF SEVERE WEATHER CONDITIONS SAID GILLES PROULX THE AGENCY'S CHIEF ECONOMIST BUT HE SAID HOUSING MARKETS SHOULD IMPROVE AS THE BETTER SPRING WEATHER AND RECENT DROPS IN INTEREST RATES TAKE HOLD 9304090158 930409 CANADIAN JOBLESS RATE UP OTTAWA CANADA'S UNEMPLOYMENT RATE ROSE TO 11 OF THE LABOR FORCE IN MARCH FROM 108 IN FEBRUARY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE LABOR FORCE GREW FASTER THAN EMPLOYMENT IN MARCH PUSHING UP THE JOBLESS RATE THE LABOR FORCE INCREASED IN MARCH BY 85000 OR 06 EMPLOYMENT INCREASED IN MARCH FOR THE EIGHTH CONSECUTIVE MONTH RISING 48000 OR 04 FROM FEBRUARY 9304090157 930409 COMAIR TRAFFIC INCREASES CINCINNATI COMAIR HOLDINGS INC SAID 219354 PASSENGERS BOARDED ITS REGIONAL AIRLINE IN MARCH UP 22 FROM 180311 A YEAR EARLIER REVENUE PASSENGER MILES INCREASED 27 TO 508 MILLION FROM 411 MILLION IN MARCH 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE 9304090156 930409 MARCH SALES GREW 96 AT 50OFF SAN ANTONIO 50OFF STORES INC SAID ITS MARCH SALES INCREASED 96 TO 137 MILLION FROM 125 MILLION BUT COMPARABLE SALES AT STORES OPEN MORE THAN A YEAR WERE DOWN 215 IN THE FOURWEEK PERIOD ENDED MARCH 26 THE DISCOUNT RETAILER SAID ADVERSE WEATHER AND CONTINUED DEPRESSED SALES ALONG THE TEXASMEXICO BORDER HURT THE RESULTS 9304090155 930409 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 287729 METRIC TONS FOR THE WEEK ENDED SATURDAY A 17 INCREASE FROM 282826 TONS THE PREVIOUS WEEK AND A 26 RISE FROM 280473 TONS A YEAR AGO STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 3621239 TONS A 31 INCREASE FROM 3511809 TONS A YEAR EARLIER 9304090154 930409 PIER 1 SALES ROSE 36 IN MARCH FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES FOR THE FIVEWEEK PERIOD ENDED APRIL 3 INCREASED 36 TO 547 MILLION FROM 528 MILLION A YEAR EARLIER THE SPECIALTY RETAILER SAID SALES AT STORES OPEN FOR MORE THAN ONE YEAR WERE ESSENTIALLY FLAT 9304090152 930409 MERRYGOROUND SALES RISE 6 JOPPA MD MERRYGOROUND ENTERPRISES INC SAID SALES FOR THE FIVE WEEKS ENDED APRIL 3 ROSE ABOUT 6 TO 692 MILLION WHILE SAMESTORE SALES FELL 9 THE SPECIALTY APPAREL RETAILER SAID SALES FOR THE NINE WEEKS ENDED APRIL 3 ROSE 8 TO 1229 MILLION WHILE SAMESTORE SALES FELL 7 THE COMPANY OPERATES 990 STORES IN 38 STATES 9304090151 930409 CALDOR SALES ROSE 12 IN MARCH NORWALK CONN DISCOUNT RETAILER CALDOR CORP SAID SALES ROSE 12 TO 172 MILLION IN MARCH A PERIOD AFFECTED BY WINTER STORMS COMPARABLESTORE SALES ROSE 12 THE COMPANY SAID WE ANTICIPATE THAT AS MORE SEASONAL WEATHER RETURNS OUR BUSINESS WILL IMPROVE SALES FOR THE NINE WEEKS ENDED APRIL 3 ROSE ALMOST 11 TO 299 MILLION WHILE COMPARABLESTORE SALES ROSE 14 CALDOR OPERATES 140 STORES IN THE NORTHEAST 9304090149 930409 VALUE CITY'S SALES DECLINE COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID SALES FOR THE FIVE WEEKS ENDED MARCH 27 DECREASED 97 TO 598 MILLION FROM 662 MILLION IN THE YEARAGO PERIOD COMPARABLESTORE SALES OR SALES IN STORES OPEN A YEAR OR MORE DROPPED 107 FOR THE 35 WEEKS ENDED MARCH 27 SALES ROSE 52 TO 5801 MILLION FROM 5513 MILLION IN THE YEARAGO PERIOD COMPARABLESTORE SALES WERE UP 12 9304090148 930409 INTERNATIONAL SLOVAKIA UNEMPLOYMENT RISES BRATISLAVA SLOVAKIA THE NUMBER OF UNEMPLOYED IN SLOVAKIA INCREASED BY 4846 PEOPLE IN MARCH TO 306090 AT THE END OF THE MONTH THE NEWS AGENCY CTK REPORTED THE UNEMPLOYMENT RATE INCREASED TO 1201 AT THE END OF MARCH FROM 1182 AT THE END OF FEBRUARY CTK SAID CITING THE SLOVAK MINISTRY OF LABOR AND SOCIAL AFFAIRS SLOVAKIA BECAME INDEPENDENT JAN 1 AFTER THE CZECHOSLOVAKIA FEDERATION DISSOLVED 9304090147 930409 ITALIAN MACHINETOOL ORDERS MILAN ORDERS FOR ITALIAN MACHINE TOOLS FELL 16 IN THE FIRST QUARTER OF 1993 FROM A YEAR EARLIER THE NATIONAL MACHINE TOOL AND AUTOMATION ASSOCIATION UCIMU SAID ORDERS FROM ABROAD REGISTERED A MASSIVE 246 INCREASE IN THE PERIOD FROM THE FIRST QUARTER OF 1992 BUT THESE WERE LARGELY OFFSET BY A FALL IN DOMESTIC DEMAND OF 19 UCIMU SAID 9304090146 930409 ROSS STORES MARCH SALES GREW NEWARK CALIF ROSS STORES INC SAID SALES GREW 11 TO 98 MILLION FOR THE FIVEWEEK PERIOD ENDED APRIL 3 COMPARED WITH 88 MILLION A YEAR EARLIER COMPARABLE STORE SALES FOR THE PERIOD INCREASED 1 9304090145 930409 CONSOLIDATED STORES CORP COLUMBUS OHIO CONSOLIDATED STORES CORP SAID SALES FOR THE MONTH ENDED MARCH 27 INCREASED 41 TO 604 MILLION FROM 58 MILLION A YEAR AGO COMPARABLESTORE SALES FELL 77 COMPARABLESTORE SALES ARE THOSE IN STORES OPEN FOR TWO YEARS AT THE BEGINNING OF THE FISCAL YEAR THE COMPANY SAID THE DROP IN COMPARABLESTORE SALES WAS TIED TO UNUSUALLY LATE AND SEVERE WINTER STORMS EXPERIENCED IN MANY OF ITS MARKETS THE COMPANY WHICH OPERATES A CHAIN OF 547 SPECIALTY RETAIL CLOSEOUT STORES SAID IT REMAINS OPTIMISTIC ABOUT ITS PERFORMANCE FOR THE BALANCE OF THE YEAR 9304090144 930409 NORTH COAST ENERGY INC SYMBOL CLEVELAND NORTH COAST ENERGY INC WHICH PREVIOUSLY TRADED UNDER THE SYMBOL NCE SAID IT WILL CHANGE ITS SYMBOL TO NCEB AT THE REQUEST OF NASDAQ NORTH COAST AN INDEPENDENT OIL AND NATURAL GAS EXPLORATION COMPANY SAID THE NEW SYMBOL MORE CLOSELY IDENTIFIES WITH ITS PREFERRED CLASS B STOCK AND WARRANTS WHICH TRADE UNDER THE SYMBOLS NCEBP AND NCEBW RESPECTIVELY 9304090143 930409 USAIR'S MARCH TRAFFIC ROSE 25 ARLINGTON VA USAIR A UNIT OF USAIR GROUP INC SAID MARCH TRAFFIC ROSE 25 TO 291 BILLION REVENUE PASSENGER MILES FROM 284 BILLION A YEAR EARLIER THE CARRIER SAID IT HAD A 39 DECREASE IN AVAILABLESEAT MILES FLOWN FOR THE MONTH THE CARRIER'S MARCH LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS 612 COMPARED WITH 574 A YEAR EARLIER PASSENGER BOARDINGS WERE DOWN 51 FROM LAST YEAR THE AIRLINE SAID USAIR NOTED THAT ITS REVENUE PASSENGER MILES INCREASED DESPITE THOUSANDS OF CANCELLATIONS CAUSED BY LAST MONTH'S EAST COAST STORM A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE 9304090142 930409 ANNTAYLOR SALES INCREASED NEW YORK ANNTAYLOR STORES CORP SAID SALES ROSE 67 TO 445 MILLION WHILE SALES IN STORES OPEN A YEAR OR MORE ROSE 28 FOR THE FIVE WEEKS ENDED APRIL 3 THE WOMEN'S SPECIALTY RETAILER SAID SALES IN THE PERIOD WERE NEGATIVELY AFFECTED BY THE SEVERE STORM IN MIDMARCH OFFSET IN PART BY ADDITIONAL PROMOTIONS IN THE LAST TWO WEEKS OF THE MONTH AND BY ENCOURAGING POSITIVE CUSTOMER RESPONSE TO SPRING FASHIONS FOR THE FISCAL YEAR WHICH BEGAN JAN 31 SALES ROSE 7 TO 746 MILLION WHILE SALES IN STORES OPEN A YEAR OR MORE ROSE 29 THE FIGURES EXCLUDE SALES FROM LEASED SHOE DEPARTMENTS WHICH WERE PHASED OUT EFFECTIVE FEB 1 ANNTAYLOR OPERATES 218 STORES IN 38 STATES AND THE DISTRICT OF COLUMBIA 9304090141 930409 SHARPER IMAGE SALES DECLINE SAN FRANCISCO SHARPER IMAGE CORP SAID ITS MARCH SALES FELL 52 CITING THE DISRUPTION FROM THE HUGE STORM THAT HIT THE EAST COAST LAST MONTH SALES IN THE PERIOD WERE 89 MILLION COMPARED WITH 94 MILLION POSTED IN MARCH 1992 THE SPECIALTY RETAILER SAID COMPARABLESTORE SALES THOSE FOR STORES OPEN AT LEAST A YEAR DECREASED 82 WHILE CATALOG SALES ROSE 77 SHARPER IMAGE SAID THE WINTER STORM FORCED THE CLOSING OF 17 STORES FOR ONE WEEKEND AND HURT SALES AT 20 OTHER STORES DESPITE THE MARCH SALES DECREASE THE COMPANY SAID IT FEELS IT IS STILL ON TRACK FOR A PROFITABLE YEAR IN 1992 THE COMPANY EARNED 359000 OR FOUR CENTS A SHARE 9304090140 930409 MEN'S WEARHOUSE SALES CLIMB FREMONT CALIF MEN'S WEARHOUSE SAID SALES CLIMBED 31 TO 166 MILLION IN THE FIVE WEEKS ENDED APRIL 3 FROM 127 MILLION A YEAR EARLIER SALES AT STORES OPEN MORE THAN A YEAR INCREASED 7 9304090139 930409 INTERNATIONAL JAPAN'S MAJOR EXPORTERS ARE STRIVING TO BALANCE US TRADE BY FILLING SHIPS GOING THE OTHER WAY BY KATHRYN GRAVEN STAFF REPORTER OF THE WALL STREET JOURNAL TORRANCE CALIF HOW MANY TONS OF HAY CUBES EQUAL ONE NEW HONDA ACCORD THAT QUESTION MAY SEEM A BIT OFF THE WALL BUT TO HITOSHI MORIMOTO IT IS A CRUCIAL PART OF A DAY'S WORK AS A SENIOR MANAGER FOR HONDA TRADING AMERICA CORP A UNIT OF HONDA MOTOR CO MR MORIMOTO'S JOB IS TO SCOUR THE US FOR NEW PRODUCTS TO SHIP BACK TO JAPAN AS IT TURNS OUT THERE'S A MARKET IN JAPAN FOR TIGHTLY COMPRESSED PALMSIZED CHUNKS OF HAY IN A DUSTY CONTAINER LOADING AREA NOT FAR FROM THE LOS ANGELES AND LONG BEACH PORTS MR MORIMOTO WALKS BETWEEN HUGE MOUNDS OF HAY CUBES AND QUICKLY WORKS THE EQUATION ONE 40FOOTLONG CONTAINER HOLDS ABOUT 22000 METRIC TONS OF HAY CUBES VALUED AT ABOUT 3500 AT CURRENT AUTO PRICES IT WOULD TAKE AT LEAST FIVE CONTAINERS OF HAY CUBES TO EQUAL ONE MIDPRICED HONDA ACCORD AND THAT IS ONE REASON THE US RUNS A CHRONIC TRADE DEFICIT WITH JAPAN ALL THE RAVENOUS LIVESTOCK IN JAPAN DON'T EAT ENOUGH HAY CUBES TO BALANCE AMERICA'S APPETITE FOR JAPANESE AUTOS AND CONSUMER ELECTRONICS AS A RESULT THE BILATERAL TRADE IMBALANCE GREW EVEN WIDER LAST YEAR WITH JAPAN EXPORTING SOME 43 BILLION MORE TO THE US THAN THE US EXPORTED TO JAPAN JAPANESE AUTO MAKERS INCREASINGLY WORRY ABOUT THE DEFICIT'S POLITICAL REPERCUSSIONS SO THEY ARE ACCELERATING EFFORTS TO EXPORT MORE US PRODUCTS TO JAPAN THERE'S A STRONG SENSE OF SOCIAL OBLIGATION SAYS CECIL PROUIX VICE PRESIDENT OF HONDA TRADING AMERICA A JOINT VENTURE OF TOKYOBASED HONDA TRADING CORP AND AMERICAN HONDA MOTOR CO JAPANESE CONSUMERELECTRONICS FIRMS WHICH AFTER AUTOS CONTRIBUTE THE LARGEST SHARE OF THE TRADE DEFICIT ALSO HAVE JUMPED INTO THE REVERSETRADE BUSINESS KNOWN FOR ITS TREMENDOUS SUCCESS IN FILLING US HOMES WITH TELEVISIONS AND VIDEOCASSETTE RECORDERS MATSUSHITA ELECTRIC INDUSTRIAL CO NOW USES ITS OWN TRADING COMPANY AMAC CORP TO EXPORT US GOODS TO BE SURE JAPAN'S GIANT TRADING CONCERNS STILL CONTROL THE BULK OF US COMMODITIES AND RAW MATERIALS SHIPPED TO JAPAN BUT JAPANESE MANUFACTURERS HAVE ALSO DISCOVERED THAT REVERSE TRADING IS ONE OF THEIR FEW SOURCES OF NEW EARNINGS THE COMBINED RESULTS ARE IMPRESSIVE BY 1990 WELL OVER 50 OF ALL US EXPORTS TO JAPAN WERE SHIPPED BY JAPANESE SUBSIDIARIES IN THE US ACCORDING TO THE MOST RECENT US DEPARTMENT OF COMMERCE DATA WHAT MAY SEEM AN OBVIOUS BUSINESS STRATEGY STARTED OUT FOR HONDA AS AN OPPORTUNITY TO TAKE ADVANTAGE OF EMPTY CARGO SPACE IN THE EARLY 1970S HONDA THEN KNOWN MORE FOR ITS MOTORCYCLES SHIPPED ABOUT 20000 CARS A YEAR TO THE US MOSTLY ON ITS OWN SHIPS MOST OF THE CARS WERE UNLOADED IN LOS ANGELES AND THE VESSELS WENT BACK TO JAPAN EMPTY NO ONE THOUGHT MUCH ABOUT IT IT'S A LOT EASIER TO UNLOAD CARS THAN IT IS TO FIND NEW PRODUCTS TO FILL EMPTY SHIPS IN THE EARLY DAYS HONDA'S NEW TRADERS WENT FOR WHAT THEY THOUGHT WOULD BE EASY SUCCESSES GOLF CLUBS TOWELS FRUIT AND COFFEE BUT FIRSTYEAR SALES TOTALED A MERE 17000 THE GUYS WHO STARTED IT WEREN'T TRADING PROFESSIONALS THEY WERE MOTORCYCLE SALESMEN EXPLAINS GEORGE TANAKA MANAGER OF THE OEM PARTS AND MACHINERY DIVISION AT HONDA TRADING AMERICA THAT HAS CHANGED HONDA TRADING AMERICA HAD 1992 SALES OF OVER 525 MILLION OF WHICH ABOUT 40 WERE US EXPORTS TO JAPAN NOT SURPRISINGLY HONDA TRADING AMERICA'S CORE BUSINESS IS TO SOURCE US PRODUCTS FOR SHIPMENT TO HONDA'S VARIOUS PRODUCTION FACILITIES AUTO PARTS MACHINE TOOLS STEEL AND PLASTICS BUT HONDA TRADING AMERICA SAYS IT IS ALSO DETERMINED TO MOVE BEYOND AUTORELATED PRODUCTS FOR EXAMPLE HONDA MOTOR TESTS ITS POWER EQUIPMENT ON A CATTLE RANCH IT OWNS IN NORTHERN JAPAN TO SUPPLY THAT RANCH WITH FEED HONDA TRADING AMERICA SPENT SIX TRYING YEARS IN THE GRAIN TRADE ONLY TO DISCOVER THAT THE BUSINESS WAS FAR TOO COMPLEX AND COMPETITIVE WE REALIZED WE WEREN'T A CARGILL SAYS MR PROUIX WHILE THE GRAIN TRADE FLOUNDERED IT ALSO SPARKED NEW OPPORTUNITIES HONDA'S RANCH NEEDED COWS AS DID OTHER JAPANESE WANTING TO SKIRT QUOTAS ON BEEF IMPORTS SO HONDA CONVERTED THE TOP DECK OF TWO SHIPS INTO CATTLE PENS COMPLETE WITH AN ANIMAL HOSPITAL AND VETERINARY STAFF BY THE MID1980S HONDA EMERGED AS ONE OF AMERICA'S LEADING CATTLE EXPORTERS TO JAPAN SENDING 3000 HEAD A YEAR ACROSS THE PACIFIC LIKE MANY US COMPANIES STRUGGLING TO CRACK THE JAPANESE MARKET HONDA TRADING AMERICA HAS COMMITTED ITS SHARE OF BLUNDERS THERE ISN'T A PRODUCT THAT WE SHIP THAT DIDN'T HAVE A HORRIBLE START SAYS MR MORIMOTO THE JOVIAL 43YEAROLD NATIVE OF RURAL WAKAYAMA PREFECTURE AND GRADUATE OF THE UNIVERSITY OF SOUTHERN CALIFORNIA ISN'T SHY ABOUT ADMITTING HIS OWN MISTAKES EARLY IN HIS CAREER FOR INSTANCE MR MORIMOTO RECEIVED A RUSH ORDER FOR HAY CUBES FROM A JAPANESE FARMER RUNNING LOW ON LIVESTOCK FEED WHILE MR MORIMOTO DID FIND AN EAGER US SUPPLIER HE DIDN'T KNOW THE DIFFERENCE BETWEEN A GOOD HAY CUBE AND A BAD ONE HIS CLIENT DID NOT ONLY DID HE REFUSE TO PAY THE INVOICE BUT IT COST US MONEY TO DISPOSE OF THE JUNK I HAD SENT HIM RECALLS MR MORIMOTO TODAY MR MORIMOTO EXPERTLY DETAILS THE FINER FEATURES OF HAY CUBES THE JAPANESE LIKE TO SEE BRIGHT GREEN COLOR FIBER AND A STEM PATTERN THE LONGER THE STEM THE BETTER AND THEN THERE WAS THE TIME MR MORIMOTO WAS AWAKENED BY AN IRATE JAPANESE CUSTOMS OFFICIAL HONDA WAS JUST GETTING INTO THE PAPERRECYCLING BUSINESS AND MR MORIMOTO HAD LOCATED A CHEAP SUPPLY OF USED MAGAZINES BUT JAPANESE CUSTOMS OFFICIALS RUMMAGING THROUGH THE WASTE PAPER FOUND THAT THE USED MAGAZINES WERE PORNOGRAPHIC AND REFUSED TO ALLOW THE TRASH TO ENTER JAPAN MR MORIMOTO QUICKLY SWITCHED US SUPPLIERS AT THE MOMENT HONDA'S SEARCH FOR NEW PRODUCTS HAS LED IT TO EXPERIMENT WITH SOYBEANS IT HOPES TO COME UP WITH A BEAN WITH MORE PROTEIN AND LESS OIL THAN THE ONES AMERICAN FARMERS CURRENTLY PRODUCE SUCH A SOYBEAN HONDA BETS WOULD BE A HIT WITH JAPANESE TOFU AND SOYSAUCE MAKERS HONDA ALSO REPORTS PROGRESS IN GROWING SHIITAKE MUSHROOMS ON OHIO FARMS THAT IDEA SPROUTED WHEN MR MORIMOTO DISCOVERED HE COULD GET A BETTER LUMBER PRICE FROM SUPPLIERS IN OHIO IF HE AGREED ALSO TO TAKE THE UNUSABLE BRANCHES LOOKING FOR WAYS TO USE THE OAK BRANCHES MR MORIMOTO DETERMINED THEY WERE IDEAL FOR CULTIVATING THE LARGE BLACK MUSHROOMS HONDA'S RIVALS TOYOTA MOTOR CORP AND NISSAN MOTOR CO ALSO HAVE SIZABLE TRADING COMPANIES BOOSTING US EXPORTS TO JAPAN BUT TOYOTA AND NISSAN DON'T SEEM TO HAVE THE SAME ZEAL AS HONDA THE MOST IMPORTANT THING IS THAT THE SHIPS ARE BACK IN NAGOYA JUST IN TIME FOR LOADING SAYS A SPOKESMAN FOR TOYOTA IN NEW YORK WE DON'T CARE IF THEY GO BACK EMPTY STILL ITS TRADING ARM TOYOTA TSUSHO AMERICA INC DID EXPORT MORE THAN 300 MILLION OF US GOODS TO JAPAN LAST YEAR BUT TOYOTA'S TRADERS SAY THE TESTY POLITICAL CLIMATE IS DAMPING THEIR ENTHUSIASM TAKAO OHNO A SENIOR VICE PRESIDENT FOR TOYOTA TSUSHO IN KENTUCKY SAYS TRADING COMPANIES USED TO LOOK FOR TOPQUALITY GOODS AT CHEAP PRICES NOW HE SAYS WE HAVE TO INCREASE EXPORTS SO WE HAVE TO BE MORE FLEXIBLE ON QUALITY FOR ITS PART NISSAN SAYS IT IS STEADILY TRYING TO EXPORT MORE US AUTO PARTS MACHINERY AND TOOLS A SPOKESMAN SAYS NISSAN'S TRADING ARM TRIED TO DIVERSIFY INTO LEATHER GOODS AND WINES BUT THE EFFORTS WEREN'T VERY SUCCESSFUL ALL THE JAPANESE COMPANIES SEEKING TO SEND US EXPORTS TO JAPAN FACE COMMON ECONOMIC CIRCUMSTANCES THAT COMPLICATE THE TASK WITH THE JAPANESE ECONOMIC DOWNTURN DOMESTIC DEMAND IS WEAK AT THE SAME TIME PRODUCTION OVERCAPACITY IN JAPAN MEANS JAPANESE MANUFACTURERS FACE TREMENDOUS BUILTIN PRESSURES TO DO WHAT THEY DO BEST EXPORT TO THE US AS A RESULT MANY JAPANESE COMPANIES ARE SEEKING NEW MARKETS FOR THEIR EXPORTS FROM THE US MR PROUIX FOR EXAMPLE IS EXCITED BY EXPANDING OPPORTUNITIES IN MEXICO AND SOUTH AMERICA OTHERS SEE THE US AS A CONVENIENT EXPORT PLATFORM TO EUROPE BUT PERHAPS THE MOST PROMISING EXPORT MARKETS LIE IN JAPAN'S BACKYARD IN SOUTHEAST ASIA MANY US EXPORTS BY JAPANESE COMPANIES ALREADY PASS THROUGH YOKOHAMA AND KOBE ON THEIR WAY TO HONG KONG AND SINGAPORE IN FACT THE FASTEST GROWING SECTOR IN THE SHIPPING BUSINESS IS INTRAASIAN TRADE SAYS RICHARD A POWELL GENERAL MANAGER AT AMERICAN PRESIDENT COS ONE OF SEVERAL MAJOR US SHIPPING LINES THAT CARRY US EXPORTS BY JAPANESE MANUFACTURERS 9304090138 930409 BATTLE HEATS UP ON RUSSIAN PRIVATIZATION PROGRAM SEES SUCCESSES BUT IS HINDERED BY ATTACKS BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW PRESIDENT CLINTON'S PROMISE TO RUSSIAN PRESIDENT BORIS YELTSIN OF AID MAY GIVE A BOOST TO RUSSIA'S PRIVATIZATION PROGRAM BUT THE BATTLE AT HOME IS FAR FROM OVER AT THEIR RECENT SUMMIT THE TWO LEADERS ANNOUNCED 16 BILLION IN SHORTTERM US AID INCLUDING 95 MILLION TO HELP PRIVATIZE RUSSIAN INDUSTRY RUSSIA'S PRIVATIZATION PROGRAM IS BOTH THE CENTRAL PILLAR OF HOPES TO BUILD A FREE MARKET AND THE PRIME TARGET IN EFFORTS TO ROLL BACK ECONOMIC REFORMS WHILE LARGELY SUCCESSFUL TO DATE THE PLAN IS REPEATEDLY HINDERED IN CRUCIAL AREAS BY MR YELTSIN'S PRINCIPAL OPPONENTS HARDLINE DEPUTIES AND BUREAUCRATS INCLUDING MEMBERS OF HIS OWN GOVERNMENT THE REGIONAL GOVERNMENTS AND OLDSTYLE MONOPOLY DIRECTORS WHO RESIST CHANGE I CAN TELL YOU WITHOUT EXAGGERATION THAT TODAY THE ISOLATED SCATTERED UNCOORDINATED ATTACKS ON PRIVATIZATION AND ON THE STATE PROPERTY COMMITTEE HAVE ALREADY BECOME A CLEVER WELLPLANNED ORGANIZED MASS ATTACK PRIVATIZATION ARCHITECT ANATOLI CHUBAIS SAID AT A MEETING OF DIRECTORS OF PRIVATIZED AND PRIVATIZING COMPANIES ON FRIDAY INDEED MR YELTSIN'S WEAKNESS AFTER TWO BRUISING BATTLES WITH THE CONGRESS IN THE PAST MONTH HAS GIVEN NEW CONFIDENCE TO THE OPPONENTS OF PRIVATIZATION AND OTHER REFORMS WHILE ALL BUT THE MOST HARDENED COMMUNISTS CLAIM TO SUPPORT PRIVATIZATION THE QUESTION IS WHAT KIND SOME OF THE PLAN'S OPPONENTS OBJECT TO PRIVATIZATION ON IDEOLOGICAL GROUNDS OTHERS SIMPLY DON'T WANT TO LOSE THEIR OWN IMPORTANT AND PROFITABLE POSITIONS AS HEAD OF THE STATE PROPERTY COMMITTEE MR CHUBAIS SPEARHEADED THE AUCTION OF 50000 SMALL AND MEDIUMSIZE SHOPS AGAINST LITTLE RESISTANCE NOW HE IS PUSHING FORWARD WITH THE MASS PRIVATIZATION OF RUSSIA'S HUGE STATEOWNED ENTERPRISES FOR YEARS THE LUCRATIVE RESPONSIBILITY OF MANAGERS AND BUREAUCRATS UNDER THE PROGRAM THE BROADER PUBLIC WILL TRADE PRIVATIZATION VOUCHERS WHICH EVERY RUSSIAN RECEIVED FOR SHARES IN THE COMPANIES THROUGH AUCTIONS RUN BY MR CHUBAIS'S COMMITTEE SOME 700 MAJOR BUSINESSES HAVE BEEN AUCTIONED SO FAR WITH 5000 TARGETED FOR THIS YEAR PRIVATIZATION ADVOCATES HOPE THAT WHEN PRIVATE OWNERSHIP IS SO WIDESPREAD EVEN POLITICAL EARTHQUAKES WILL BE UNABLE TO SHAKE THE FOUNDATIONS OF ECONOMIC REFORM UNDER THE PROGRAM FACTORY WORKERS AND MANAGERS CAN OWN AS MUCH AS 51 OF THEIR ENTERPRISE BEFORE ANY OF THE REMAINING SHARES ARE AUCTIONED TO THE PUBLIC MANY WHITECOLLAR WORKERS WITHOUT FACTORY JOBS COMPLAIN THAT THIS CUTS THEM OUT OF THE WEALTH OF THE NATION BUT FACTORY WORKERS ASK WHY THEY SHOULD SHARE THIS WEALTH WITH OUTSIDERS THE MOST VIRULENT FORM OF THIS ATTACK IS THE SOCALLED FOURTH VARIANT OF PRIVATIZATION WHILE THE CURRENT PROGRAM ALLOWS THREE ALTERNATIVE WAYS TO PRIVATIZE EACH ULTIMATELY INCLUDES WIDE PUBLIC OWNERSHIP THE FOURTH VARIANT WOULD ALLOW EMPLOYEES TO BUY MORE THAN 90 OF AN ENTERPRISE PROPONENTS SAY THIS WOULD BE FAIRER AND BRING NEEDED CASH TO THE FEDERAL BUDGET OPPONENTS SAY IT IS UNFAIR INFLATIONARY AND CONTRADICTS THE GOAL OF IMPROVING INDUSTRIAL MANAGEMENT WHILE SOME IN PARLIAMENT TRY TO ATTACK THE PRIVATIZATION PROGRAM HEADON INCLUDING DEMANDING THAT MR CHUBAIS BE FIRED SOME MINISTRIES ARE CHIPPING AWAY AT THE PROGRAM FROM WITHIN MINISTRIES HAVE RECENTLY ORDERED SOME PRIVATIZATION DEALS REEVALUATED AND HAVE RESTRICTED PRIVATIZATION IN CERTAIN SECTORS FOR EXAMPLE 30 OF THE TRANSPORTATION SECTOR 55 OF THE MILITARYINDUSTRIAL COMPLEX AND 65 OF THE ENERGY COMPLEX NO LONGER CAN BE PRIVATIZED MR CHUBAIS SAID RECENTLY EVEN GOVERNMENT OFFICIALS OPENLY ATTACK THE PROGRAM THESE DAYS IN COMMENTS LAST WEEK THAT SPOTLIGHTED THE PERSISTENT SPLIT WITHIN THE YELTSIN CABINET OVER ECONOMIC REFORM PRIME MINISTER VIKTOR CHERNOMYRDIN LIKENED MR CHUBAIS TO STALINFIGHTING WORDS IN THIS COUNTRY CHUBAIS IS CARRYING OUT THE COLLECTIVIZATION OF PRIVATIZATION HE TOLD A MEETING OF DEFENSE PLANT MANAGERS LAST WEEK REFERRING TO STALIN'S FORCIBLE COLLECTIVIZATION OF SOVIET AGRICULTURE IN THE 1930S THE MORE DISARRAY APPEARS AT THE CENTER THE MORE REGIONAL AUTHORITIES DISREGARD ORDERS FROM MOSCOW VYACHESLAV KLIMOV NEVER KNOWS WHAT NEW OBSTACLE HE WILL MEET EACH DAY AS GENERAL DIRECTOR OF TOKEM A PLASTICS AND CHEMICALS MAKER ONE OF THE FEW PRIVATIZED ENTERPRISES IN KEMEROVO A TOWN IN WESTERN SIBERIA WE TOOK THE CITY BEFORE THE ANTIMONOPOLY COMMITTEE AND TO COURT BECAUSE THE COMPANY FELT THE GOVERNMENT WAS TRYING TO OBSTRUCT IT AND WAS POSSIBLY PROTECTING A MONOPOLY IN THE TOWN WHILE WE WERE IN ARBITRATION THEY TURNED OFF OUR DRINKING AND BATHROOM WATER MR KLIMOV SAYS HIS COMPLAINTS ARE ECHOED BY DIRECTORS OF PRIVATIZED COMPANIES ACROSS THE COUNTRY VLADIMIR BOGOCHAROV GENERAL DIRECTOR OF A RUSSIANDUTCH JOINT VENTURE THAT MAKES TRAILERS IN KRASNOYARSK SAYS IT WAS ONLY WITH ROUNDTHECLOCK VIGILANCE THAT HE MANAGED TO GET HIS COMPANY PRIVATIZED LOCAL BUREAUCRATS KEPT STANDING HIM UP AT PLANNED MEETINGS OR DEMANDED THAT DOCUMENTS BE REWORKED I KNOW LOTS OF EXAMPLES OF COMPANIES THAT HAVE BEEN WAITING ONE AND A HALF YEARS FOR THEIR PAPERWORK TO GO THROUGH HE SAYS IN CHELYABINSK A FORMERLY CLOSED CENTER OF DEFENSE INDUSTRY PRIVATIZATION HAD BEEN MOVING RELATIVELY QUICKLY BUT LAST WEEK THE LOCAL COUNCIL SUSPENDED THE AUCTION PROGRAM AFTER ONLY FOUR ENTERPRISES HAD BEEN SOLD AN AUCTION OF 53 COMPANIES WAS CANCELED THE PACE OF PRIVATIZATION IN OUR REGION CAUSED ANXIETY AMONG REACTIONARIES AND NEOCOMMUNISTS SAYS VLADIMIR GOLOVLEV CHAIRMAN OF THE DISTRICT PRIVATIZATION COMMITTEE EXPLAINING THE DELAY SUPPORTERS OF THE PRIVATIZATION PROGRAM ARE FIGHTING BACK MR CHUBAIS'S COMMITTEE IS SPEEDING UP THE PROCESS OF LARGESCALE PRIVATIZATION A NEW SUPPORT BASE IS ALSO EMERGING THE DIRECTORS OF PRIVATIZED AND ABOUTTOBE PRIVATIZED ENTERPRISES WHO WANT TO ASSURE THAT NO ONE SUDDENLY CHANGES THE RULES OVER THE WEEKEND MORE THAN 1000 SUCH DIRECTORS HELD A FOUNDING CONGRESS IN MOSCOW FOR A NEW ASSOCIATION THE ORGANIZATION HEADED BY FORMER ECONOMICREFORM CZAR YEGOR GAIDAR WAS ORIGINALLY DESIGNED TO SHARE INFORMATION BUT IT HAS GIVEN ITSELF A NEW BRIEF LOBBYING TO ENSURE THAT PRIVATIZATION PROCEEDS 9304090137 930409 BUSINESS BRIEF TENTATIVE ACCORD SETS REHABILITATION PLAN FOR EXECUTIVE LIFE LOS ANGELES CALIFORNIA'S INSURANCE COMMISSIONER SAID A TENTATIVE AGREEMENT HAS BEEN REACHED ON A REVISED REHABILITATION PLAN FOR FAILED EXECUTIVE LIFE INSURANCE CO THAT WOULD COMPLY WITH A STATE APPELLATE COURT'S DECISION THE AGREEMENT WAS REACHED BY COMMISSIONER JOHN GARAMENDI THE NATIONAL ORGANIZATION OF LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATIONS AND AURORA NATIONAL LIFE ASSURANCE CO THE INSURER THAT WOULD TAKE OVER EXECUTIVE LIFE'S BUSINESS AND REMAINING ASSETS THE REVISED PLAN WOULD ELIMINATE A TWOTIER SYSTEM OF VALUING MUNICIPAL BONDS BACKED BY EXECUTIVE LIFE IT ALSO WOULD CHANGE THE METHOD OF VALUING POLICYHOLDER CLAIMS AND IT WOULD SHIFT THE DATE FOR VALUING ASSETS FROM THE DATE THAT EXECUTIVE LIFE WAS SEIZED TO THE DATE IT EMERGES FROM CONSERVATORSHIP THE PLAN IS EXPECTED TO BE FILED IN STATE SUPERIOR COURT BY APRIL 20 LAST MONTH A STATE APPEALS COURT SET ASIDE AN EARLIER REHABILITATION PLAN THAT HAD BEEN OPPOSED CHIEFLY BY TRUSTEES FOR ABOUT 185 BILLION OF MUNICIPAL BONDS BACKED BY EXECUTIVE LIFE THE TRUSTEES ARGUED THAT THE PLAN'S TWOTIER SYSTEM OF VALUING THE BONDS AT THE PRICE BONDHOLDERS PAID FOR THEM RATHER THAN PAR VALUE WAS UNFAIR UNDER THE NEW PLAN ANY POLICYHOLDERS WHO CHOOSE TO WITHDRAW THEIR FUNDS WILL RECEIVE THE CURRENT LIQUIDATION VALUE THE PLAN ALSO WOULD REDUCE MORATORIUM CHARGES FOR POLICYHOLDERS WHO CHOOSE TO STAY WITH THE NEW COMPANY 9304090136 930409 TELEDYNE STEPS UP AUDITS TO ENSURE PACT COMPLIANCE BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE NEW PRESIDENT OF TELEDYNE INC FORMER AIR FORCE SECRETARY DONALD B RICE SAID THE COMPANY RECENTLY ACCELERATED AUDITS TO ENSURE COMPLIANCE WITH FEDERAL CONTRACTING RULES TELEDYNE HAS BEEN FACING IMAGE PROBLEMS AS A RESULT OF FEDERAL LEGAL SETTLEMENTS AND LAWSUITS RELATING TO ETHICAL AND REGULATORY LAPSES THE CONGLOMERATE OF AVIATION INDUSTRIAL AND CONSUMERPRODUCT COMPANIES PLEADED GUILTY LAST YEAR AND PAID A 175 MILLION FINE TO SETTLE JUSTICE DEPARTMENT CHARGES THAT IT DECEIVED THE GOVERNMENT ABOUT TESTING OF ELECTRONIC RELAYS IN FEBRUARY IT AGREED TO PAY ABOUT 22 MILLION WITHOUT ADMITTING ANY WRONGDOING TO SETTLE GOVERNMENT ALLEGATIONS THAT IT FAILED TO PROPERLY TEST PARTS FOR JET FIGHTERS AND OTHER EQUIPMENT THE 53YEAROLD MR RICE IN HIS FIRST MEDIA BRIEFING SINCE HE ASSUMED THE JOB LAST MONTH SAID THE COMPANY HAS AUTHORIZED INCREASED SPENDING AND THE HIRING OF OUTSIDE CONSULTANTS TO EXPEDITE THE AUDITS AND RELATED REVIEWS HE SAID THE AUDITS SHOULD BE COMPLETED WITHIN 60 TO 90 DAYS TELEDYNE CHAIRMAN WILLIAM RUTLEDGE TOLD REPORTERS THAT THE WIDELY RESPECTED FORMER AIR FORCE CHIEF HAD BEEN HIRED FOR HIS MANAGERIAL SKILLS AND KNOWLEDGE OF GOVERNMENT DEALINGS NOT TO BUFF UP THE COMPANY'S IMAGE BUT MR RICE'S ARRIVAL CLEARLY BOOSTS THE COMPANY'S CREDIBILITY MESSRS RICE AND RUTLEDGE SAID THE COMPANY STARTED INCREASING SCRUTINY OVER ITS ETHICAL AND REGULATORY COMPLIANCE SEVERAL YEARS AGO AND IT HAS ADDED A 22PERSON CORPORATE STAFF DEVOTED ENTIRELY TO SUCH MATTERS DURING THE BRIEFING THE TWO EXECUTIVES TOOK AIM AT THE FEDERAL FALSE CLAIMS ACT WHICH ALLOWS AN EMPLOYEE AT A DEFENSE COMPANY TO FILE A FRAUD LAWSUIT AGAINST THE EMPLOYER ON BEHALF OF THE GOVERNMENT TELEDYNE HAS BEEN A FREQUENT TARGET OF THE SOCALLED WHISTLEBLOWER LAWSUITS INCLUDING LEGAL ACTIONS THAT LED TO THE COMPANY'S RECENT GUILTY PLEA AND SETTLEMENT MESSRS RICE AND RUTLEDGE REFERRED TO BOUNTY HUNTING THAT CAN RESULT IF WORKERS CHOOSE TO SUE THE COMPANY AND POTENTIALLY SHARE IN ANY SETTLEMENT AWARDS RATHER THAN INFORM COMPANY MANAGERS OF PROBLEMS WHILE THEY FIELDED NUMEROUS QUESTIONS ON ETHICAL ISSUES THE EXECUTIVES STRESSED THAT TELEDYNE FACES OTHER CHALLENGES THEY SAID THEY HOPED TO DOUBLE ANNUAL REVENUES WHICH TOTALED 321 BILLION IN 1992BY THE END OF THE DECADE AND RESTORE LAGGING PROFITABILITY ALTHOUGH TELEDYNE WILL REMAIN UNIQUELY DECENTRALIZED IT CONTROLS DISPARATE OPERATIONS EMPLOYING ABOUT 24000 WORKERS WITH A HEADQUARTERS STAFF OF 150 PEOPLE MR RUTLEDGE SAID THE COMPANY WHICH ONCE EMPLOYED ABOUT 40000 WORKERS IS CONSIDERING FURTHER REDUCTION OF OPERATIONS TO MEET SHRINKAGE IN MILITARY CONTRACTING WORK AND FOR OTHER REASONS FURTHER DIVESTITURES OR ACQUISITIONS ALSO ARE BEING CONSIDERED HE SAID NOTING THAT TELEDYNE RECENTLY CONSIDERED BUYING MCDONNELL DOUGLAS CORP MILITARYHELICOPTER OPERATIONS BUT DIDN'T REACH AN AGREEMENT AND HAS SINCE GIVEN UP THAT PROSPECT 9304090135 930409 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ITALY WILL SHED ITS MAJORITY CONTROL OF THE COUNTRY'S ENERGY SECTOR AS PART OF A BROADER PRIVATIZATION PROGRAM DETAILS HAVEN'T BEEN WORKED OUT BUT THE CABINET INTENDS TO COMBINE AS MUCH OF THE ENERGY INDUSTRY AS POSSIBLE BY JULY AND THEN OFFER STOCK IN THAT ENTERPRISE THE GOVERNMENT LAST FALL UNVEILED A PROGRAM TO SELL 51 TRILLION LIRE 32 BILLION OF STATE ASSETS OVER THE NEXT FOUR YEARS BUT IT HASN'T YET SOLD ANY PROMPTING CRIES OF FOOTDRAGGING THE CABINET YESTERDAY CLEARED A TIMETABLE FOR THE SELLOFFS BEGINNING NEXT MONTH RANGING FROM TELECOMMUNICATIONS TO INSURANCE THE CABINET DECISION ON THE ENERGY SELLOFF FOLLOWED A MOVE LAST WEEK BY THE STATE ENERGY CONGLOMERATE ENTE NAZIONALE IDROCARBURI TO RECOMMEND AN INITIAL PUBLIC OFFERING OF A MINORITY STAKE IN AGIP SPA ITS CRUDEOIL EXPLORATION AND PRODUCTION ARM A THREEMONTH CRACKDOWN BY SOUTH KOREA ON COPYRIGHT PIRACY AND COUNTERFEIT PRODUCTS WITH FOREIGN BRAND NAMES HAS RESULTED IN ARRESTS OF 240 PEOPLE AUTHORITIES CONFISCATED 43 MILLION PIRATED BOOKS TAPES AND OTHER PRODUCTS INCLUDING 41000 PAIRS OF SHOES ALSO IN SELFPOLICING EFFORTS BY BUSINESS SEOUL COMPUTER DEALERS DESTROYED MORE THAN 120000 PIRATED SOFTWARE DISKS AND ELECTRONIC GAMES LAST MONTH THE US HAD COMPLAINED IN TRADE TALKS OF SOUTH KOREAN LAXITY IN PROTECTING FOREIGN COPYRIGHTS AND PATENTS THAILAND APPROVED THE COUNTRY'S FIRST CREDITRATING AGENCY IMPROVING PROSPECTS FOR A BIGGER AND MORE LIQUID CORPORATE BOND MARKET TO COMPLEMENT FIRMS' OFFSHORE FINANCING THAI RATING & INFORMATION SERVICE CO CAPITALIZED AT 100 MILLION BAHT 4 MILLION COULD BEGIN OPERATING BY LATE MAY TRIS'S STOCK IS HELD 19 BY THAI GOVERNMENT FINANCIAL INSTITUTIONS 22 EACH BY COMMERCIAL BANKS FINANCE AND SECURITIES COMPANIES 5 BY STANDARD & POOR'S CORP OF THE US AND 10 BY THE ASIAN DEVELOPMENT BANK FRENCH AUTO MAKERS CONDEMNED AN AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND JAPAN FOR A 94 REDUCTION IN EC IMPORTS OF JAPANESE CARS THIS YEAR THEY SAID LAST WEEK'S PACT WILL AGGRAVATE RATHER THAN ALLEVIATE THE EUROPEAN AUTO INDUSTRY'S PROBLEMS WITH SHRINKING SALES THE ACCORD ASSUMES TOTAL VEHICLE SALES IN EUROPE THIS YEAR WILL FALL 65 BUT THE INDUSTRY EXPECTS A DROP OF AT LEAST 10 THAT WOULD RAISE JAPAN'S MARKET SHARE WITHOUT A BIGGER CUT IN ITS SHIPMENTS FIRSTQUARTER EC AUTO SALES FELL 18 FROM A YEAR EARLIER WHILE FRENCH SALES SLUMPED 22 BELGIUM LOOKING FOR WAYS TO SLASH ITS BUDGET DEFICIT WILL INCREASE WITHHOLDING TAXES ON FIXEDINTEREST INCOME TO 103 FROM 10 AND ON DIVIDENDS TO 2575 FROM 25 IN ADDITION MUTUAL FUNDS IN WHICH EARNINGS ARE TAXED ONLY WHEN WITHDRAWN WILL BE SUBJECT TO A 35 STAMP TAX WHEN INVESTORS MAKE CHANGES IN THEIR PORTFOLIOS THE STAMP TAX NOW APPLIES ONLY TO INITIAL INVESTMENTS BELGIUM ALSO WILL IMPOSE A 06 SUBSCRIPTION TAX ON CAPITAL INJECTIONS TO COMPANIES THESE MEASURES ARE EXPECTED TO RAISE 9 BILLION BELGIAN FRANCS 2707 MILLION ASIAN COUNTRIES HAVE AGGRESSIVE PLANS TO BUILD NUCLEARPOWER PLANTS TO ENSURE ENERGY SUPPLIES A SURVEY BY THE PRIVATE JAPAN ATOMIC INDUSTRIAL FORUM FOUND WORLDWIDE 421 NUCLEAR UNITS ARE IN OPERATION AND 81 ARE BEING BUILT WHILE 58 ARE PLANNED LAST YEAR FRANCE OPENED TWO PLANTS AND INDIA AND CANADA ONE EACH CONSTRUCTION BEGAN LAST WEEK ON TWO PLANTS IN SOUTH KOREA AND ONE IN JAPAN KOREA WHICH HAS NINE OPERATIONAL SITES AND FIVE UNDER CONSTRUCTION PLANS TWO MORE WITH THE GOAL OF TRIPLING NUCLEAR GENERATING CAPACITY BY THE YEAR 2006 FOUR JAPANESE UNITS WILL START UP THIS YEAR IN CHINA TWO IMPORTED NUCLEAR PLANTS ARE TO START PRODUCING POWER IN GUANGDONG THIS YEAR AND NEXT YEAR CHINA'S FIRST DOMESTICMADE UNIT IS BEING TESTED FOR COMMERCIAL OPERATION NEXT YEAR TAIWAN WITH SIX NUCLEAR PLANTS PLANS TWO MORE INDONESIA WANTS TO BUILD 12 FACILITIES IN THE NEXT 15 YEARS THE FIRST TO OPEN IN 2003 THAILAND HOPES TO BUILD TWO BY 2006 SIGNALING ITS RESOLVE TO WEAKEN THE ECONOMIC POWER OF SOUTH KOREAN CONGLOMERATES THE GOVERNMENT'S FAIR TRADE COMMISSION WILL START BY JULY AN INVESTIGATION OF 30 BUSINESS GIANTS' LINKS AND ACTIVITIES THAT HINDER FAIR COMPETITION INTERMEDIARIES FOR TAIWAN AND CHINA AGREED TO HOLD TALKS IN SINGAPORE THIS MONTH FOCUSING ON ECONOMIC EXCHANGES INDIRECT TRADE AND CIVILIAN RELATIONS HAVE WARMED SINCE POLITICAL TENSIONS EASED IN RECENT YEARS 9304090134 930409 POLITICS & POLICY EVEN AS CLINTON APPOINTS WOMEN AND MINORITIES INSIDERS RESEMBLE THOSE OF GEORGE WASHINGTON BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WHEN PRESIDENT CLINTON DINED WITH BORIS YELTSIN AT LAST WEEKEND'S SUMMIT THE CLINTON TEAM AT THE TABLE DIDN'T LOOK MUCH LIKE AMERICA ONLY ONE OF THE NINE PEOPLE ON THE US SIDE OF THE SALMON AND CRAB WAS A WOMAN TOBY GATI A MIDLEVEL MEMBER OF THE NATIONAL SECURITY COUNCIL STAFF NO BLACKS HISPANICS OR ASIANAMERICANS MADE THE GUEST LIST GATHERINGS OF MR CLINTON'S TOP ECONOMIC OR POLITICAL ADVISERS WOULD HAVE MUCH THE SAME DEMOGRAPHIC PROFILE INDEED FOR ALL THE ADMINISTRATION'S EMPHASIS ON DIVERSITY IN ITS APPOINTMENTS WHITE MALES DOMINATE MR CLINTON'S CORE GROUP OF ADVISERS AND POLICY EXPERTS JUST AS THEY HAVE THE INNER CIRCLES OF EVERY PRESIDENT FROM GEORGE WASHINGTON ONWARD PRESIDENTS WANT THEIR INNER CIRCLES TO BE PEOPLE WHO THEY FEEL MOST COMFORTABLE WITH SAYS DAVID BOSITIS SENIOR RESEARCHER AT THE JOINT CENTER FOR POLITICAL AND ECONOMIC STUDIES IN MR CLINTON'S CASE HE SAYS THAT TRANSLATES WITH THE SIGNIFICANT EXCEPTION OF HIS WIFE HILLARY RODHAM CLINTON MOSTLY INTO MEN OF ELITE BACKGROUNDS WHO CONTRAST SHARPLY WITH THE EVERYDAY PEOPLE THAT THE PRESIDENT SO OFTEN TALKS ABOUT REPRESENTING THE GROUP THAT DINED WITH MR YELTSIN FOR EXAMPLE INCLUDED THREE RHODES SCHOLARS THREE MILLIONAIRES AND FIVE WHO ATTENDED IVY LEAGUE SCHOOLS TWO OTHERS GRADUATED FROM STANFORD LAW SCHOOL AND THE FLETCHER SCHOOL OF LAW AND DIPLOMACY WHILE THE WHITE HOUSE SAYS IT IS UNABLE TO PROVIDE AN OVERALL DEMOGRAPHIC LOOK AT THE ADMINISTRATION A RECENT ASSOCIATED PRESS STUDY FOUND THAT ONE THIRD OF THE ADMINISTRATION'S INITIAL WHITE HOUSE AND SUBCABINET APPOINTEES WERE IVY LEAGUE GRADUATES THE RHODES SCHOLARSHIP TRUST HAS TALLIED 18 ADMINISTRATION OFFICIALS WHO ATTENDED OXFORD BY CONTRAST THERE ARE ONLY SEVEN VIETNAM VETERANS MOST OF THEM AT THE DEPARTMENT OF VETERANS AFFAIRS ACCORDING TO A WALL STREET JOURNAL COUNT THE ADMINISTRATION WAS UNABLE TO PROVIDE DATA OF ITS OWN THE MILITARY FEELS THE PRESENCE OF SUCH DISTINCTIONS FIVE OF THE SIX JOINT CHIEFS OF STAFF ATTENDED SUCH MIDDLECLASS COLLEGES AS CHAIRMAN COLIN POWELL'S CITY COLLEGE OF NEW YORK SOME AIDES SUGGEST THAT THE CULTURAL DIFFERENCES BETWEEN GRADUATES OF SUCH RED BRICK SCHOOLS AND THOSE OF ELITE UNIVERSITIES MAY HAVE A GREAT DEAL TO DO WITH TENSIONS BETWEEN THE WHITE HOUSE AND MILITARY LEADERS YET THERE IS NO QUESTION THAT MR CLINTON HAS DELIVERED ON HIS PROMISE TO WOMEN AND MINORITIES TO APPOINT THE MOST DIVERSE ADMINISTRATION IN HISTORY OF THE 225 PEOPLE SO FAR CHOSEN FOR POSTS OR ALREADY CONFIRMED BY THE SENATE WHITE HOUSE DATA SHOW THAT 80 ARE WHITE 20 ARE MINORITIES AND 33 ARE WOMEN OF THE APPROXIMATELY 70 PEOPLE ON THE WHITE HOUSE STAFF 45 ARE WOMEN AND 20 ARE OF A MINORITY GROUP THE NUMBERS COMPARE FAVORABLY TO GEORGE BUSH'S ADMINISTRATION AS OF LAST FALL 87 OF HIS POLITICAL APPOINTEES WERE WHITE THE DIVERSITY IS MOST OBVIOUS IN THE CABINET FOUR OF THE 15 CABINET MEMBERS ARE WOMEN ATTORNEY GENERAL JANET RENO IS THE FIRST WOMAN TO HEAD ONE OF THE SOCALLED BIG FOUR AGENCIES STATE JUSTICE DEFENSE AND TREASURY FOUR OF MR CLINTON'S CABINET SECRETARIES ARE BLACK TWO ARE HISPANIC MR CLINTON HAS PLACED MINORITIES AND WOMEN IN SOME POWERFUL SUBCABINET POSITIONS AS WELL THEY ARE DOING AN OUTSTANDING JOB OF BRINGING IN AFRICANAMERICANS IN SENIOR POSITIONS THROUGHOUT THE GOVERNMENT SAYS RANDY KINDER A BLACK INVESTMENT BANKER AND VETERAN OF THE CARTER ADMINISTRATION CITING DEPUTY SECRETARIES WALTER BROADNAX AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AND TERRY DUVERNAY AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AMONG FEMALE APPOINTEES MADELEINE KUNIN IS DEPUTY EDUCATION SECRETARY AND KATHRYN HIGGINS IS LABOR SECRETARY ROBERT REICH'S CHIEF OF STAFF FURTHER THE PRESIDENT HAS PURSUED THIS DIVERSITY EVEN WHEN IT HAS CAUSED HIM SOME GRIEF CHASE UNTERMEYER THE PERSONNEL CHIEF FOR PRESIDENT BUSH ILLUSTRATES HOW EASY IT IS TO TAKE POTSHOTS AT THE PRESIDENT FROM BOTH SIDES IT SEEMS RATHER CLEAR THAT PEOPLE ARE BEING CHOSEN PRIMARILY ON THE BASIS OF CHROMOSOME AND PIGMENT SAYS MR UNTERMEYER CITING SPECIFICALLY THE APPOINTMENTS OF HAZEL O'LEARY AS ENERGY SECRETARY AND FEDERICO PENA AS TRANSPORTATION SECRETARY YET MR UNTERMEYER THEN TURNS AROUND AND CLAIMS THAT THE BUSH ADMINISTRATION DESERVES MORE CREDIT FOR ITS OWN DIVERSITY RECORD EVEN WITHIN THE WHITE HOUSE THE PERSONNEL CHIEF BRUCE LINDSEY IS PRIVATELY CALLED THE DIVERSITY COP AND BLAMED FOR THE ADMINISTRATION'S SLOW PACE IN MAKING APPOINTMENTS AS OF THIS POINT IN THE CARTER ADMINISTRATION 161 PEOPLE HAD BEEN FORMALLY NOMINATED TO FILL SUBCABINET POSTS AND 102 HAD BEEN CONFIRMED PRESIDENT REAGAN AT THE SAME POINT IN 1981 NOMINATED 109 PEOPLE AND 66 WERE CONFIRMED MR CLINTON HAS NOMINATED 68 AND ONLY 31 ARE CONFIRMED YET MUCH OF THE GOODWILL AMONG WOMEN AND MINORITIES FROM THAT EFFORT HAS BEGUN TO FADE AS IT BECOMES CLEAR THAT MOST OF THEM REMAIN OUTSIDE THE PRESIDENT'S INNER CIRCLE WHEN MR CLINTON NEEDS POLITICAL ADVICE STRATEGISTS JAMES CARVILLE AND PAUL BEGALA AND DEMOCRATIC NATIONAL CHAIRMAN DAVID WILHELM HAVE HIS EAR ON ECONOMIC ISSUES IT IS TREASURY SECRETARY LLOYD BENTSEN DEPUTY SECRETARY ROGER ALTMAN NATIONAL ECONOMIC COUNCIL CHAIRMAN ROBERT RUBIN AND BUDGET DIRECTOR LEON PANETTA HIS FOREIGN POLICY TEAM IS HEADED BY SECRETARY OF STATE WARREN CHRISTOPHER NATIONAL SECURITY ADVISER ANTHONY LAKE AND HIS DEPUTY SANDY BERGER HIS TOP GENERAL ADVISERS WHO CAN WEIGH IN ON ANY SUBJECT ARE CHIEF OF STAFF THOMAS MACK MCLARTY COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS AND PERSONNEL DIRECTOR MR LINDSEY WHILE LAUDING THE MAKEUP OF THE CABINET ROGER WILKINS A GEORGE MASON UNIVERSITY PROFESSOR OBSERVES WHAT I SEE AT THE WHITE HOUSE IS WHAT I CRITICIZED IN THE CAMPAIGN I THOUGHT THE CAMPAIGN WAS PRETTY MUCH A WHITEBOY CAMPAIGN AND HE HAS OBVIOUSLY DECIDED TO PUT AROUND HIM THE PEOPLE THAT BROUGHT HIM INDEED THE MOST IMPORTANT BLACK PERSON AT THE WHITE HOUSE DOESN'T EVEN WORK FOR MR CLINTON IT IS MAGGIE WILLIAMS THE FIRST LADY'S CHIEF OF STAFF ADDING TO SUCH COMPLAINTS IS THE EVIDENCE THAT A NUMBER OF THE ADMINISTRATION'S WOMEN AND MINORITY HIRES DON'T HAVE THE CLOUT THAT PREVIOUS INHABITANTS OF THEIR OFFICES HAVE ENJOYED IN THE PAST THE STATE DEPARTMENT'S UNDERSECRETARY FOR ECONOMIC AFFAIRS COORDINATED THE GROUP OF SEVEN SUMMITS NOW JOAN SPERO HOLDS THE TITLE BUT THAT TASK HAS BEEN HANDED TO A WHITE MALE ROBERT FAUVER WHO WORKS JOINTLY FOR THE NATIONAL ECONOMIC COUNCIL AND NATIONAL SECURITY COUNCIL SOME CRITICS ALSO CITE THE FACT THAT SO MANY OF THE ADMINISTRATION'S BLACK APPOINTEES 11 OF 38 SO FAR ARE WORKING IN PRESS OFFICES THESE ARE THE MOST VISIBLE PEOPLE THAT THE PUBLIC WILL SEE OUTSIDE OF THE CABINET SECRETARIES SAYS RONALD WALTERS CHAIRMAN OF HOWARD UNIVERSITY'S POLITICAL SCIENCE DEPARTMENT IT REFLECTS A LACK OF BLACKS IN HARD POLICYMAKING ROLES I'D LIKE TO SEE DIVERSITY REFLECTED SOMEWHERE WHERE THE RUBBER MEETS THE ROAD 9304090133 930409 COMPTROLLER'S OFFICE IS INVESTIGATING FIRST UNION CORP OVER POSSIBLE TYING' BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL CHARLOTTE NC FIRST UNION CORP IS UNDER INVESTIGATION BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY TO ASSESS WHETHER IT ENGAGED IN ILLEGAL TYING OR LINKING THE GRANTING OF CREDIT TO OBTAINING UNDERWRITING BUSINESS FIRST UNION A BANK HOLDING COMPANY CONFIRMED THAT SEVERAL MONTHS AGO IT HAD SUPPLIED INFORMATION REQUESTED IN THE INQUIRY IT SAID THAT IT HASN'T HEARD FURTHER FROM THE AGENCY AND DECLINED TO GIVE DETAIL OF WHAT THE COMPTROLLER'S OFFICE IS EXAMINING THE BANK SAID IT IS IN COMPLIANCE WITH REGULATIONS AND ISN'T AWARE OF ANY ITS TRANSACTIONS THAT HAVE BEEN TIED THE COMPTROLLER'S OFFICE WOULDN'T COMMENT THE INVESTIGATION WAS FIRST REPORTED IN THE BOND BUYER A TRADE PUBLICATION FIRST UNION IS ONE OF A HANDFUL OF BANKS THAT HAVE COME UNDER THE COMPTROLLER'S SCRUTINY IN RECENT MONTHS TO DETERMINE WHETHER THEY VIOLATED ANTITYING LAWS WHICH PROHIBIT CONDITIONING THE ISSUANCE OF CREDIT ON THE PURCHASE OF OTHER SERVICES OR PRODUCTS FROM A BANK IN MARCH THE COMPTROLLER'S OFFICE FOUND IN AN ENFORCEMENT ACTION AGAINST NATIONAL CITY CORP THAT THE CLEVELAND BANK HAD ILLEGALLY ATTEMPTED TO REQUIRE A CUSTOMER SEEKING A LETTER OF CREDIT TO DISTRIBUTE BONDS THROUGH AN AFFILIATE OF THE BANK ACCORDING TO US OFFICIALS NATIONAL CITY HAS AGREED TO STOP THE ALLEGED PRACTICES AN OFFICIAL AT NATIONAL CITY YESTERDAY DECLINED TO COMMENT ACCORDING TO A PERSON FAMILIAR WITH THE MATTER FIRST UNION WAS DRAWN INTO THE COMPTROLLER'S INQUIRY BASED ON INFORMATION PROVIDED TO THE COMPTROLLER'S OFFICE THROUGH THE SECURITIES INDUSTRY ASSOCIATION WHICH LAST NOVEMBER CANVASSED ITS MORE THAN 600 MEMBER FIRMS SEEKING ALLEGED EXAMPLES OF BANK TYING VIOLATIONS IN ORDER TO GIVE THE COMPTROLLER'S OFFICE LEADS THE ISSUE OF TYING CAME TO THE FOREFRONT IN THE FALL WHEN RICHARD ROBERTS A COMMISSIONER FOR THE SECURITIES AND EXCHANGE COMMISSION SAID HE WAS CONCERNED ABOUT COMPLAINTS HE HAD RECEIVED THAT BANKS FREQUENTLY LINK CREDIT EXTENSIONS TO UNDERWRITING BUSINESS MR ROBERTS REFERRED SEVERAL COMPLAINTS TO THE COMPTROLLER'S OFFICE 9304090132 930409 INTERNATIONAL RUSSIA'S GAS MONOPOLY SEEKS TO AVOID FATE OF OIL INDUSTRY AMID TRANSITION BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL YAMBURG RUSSIA LONG BEFORE BORIS YELTSIN GOT INTO HIS PRESENT STRUGGLE RUSSIA'S HUGE NATURAL GAS INDUSTRY FACED ONE OF THE LESSONS HE IS LEARNING IT IS EXTREMELY DIFFICULT TO MAKE THE TRANSITION FROM COMMUNISM INTACT ON THE FACE OF IT GAZPROM THE STATE GAS MONOPOLY HAS EVERYTHING GOING FOR IT IT IS THE WORLD'S LARGEST NATURALGAS CONCERN ACCOUNTING FOR 35 OF GLOBAL PRODUCTION AND 40 OF GAS RESERVES IT IS RESPONSIBLE FOR HALF OF RUSSIA'S TOTAL ENERGY OUTPUT AND SUPPLIES A QUARTER OF WESTERN EUROPE'S NATURALGAS NEEDS THROUGH A VAST PIPELINE SYSTEM THAT SPANS TWO CONTINENTS SURE ITS INVESTMENT NEEDS ARE IMMENSE AND TO HELP MEET THEM THE GOVERNMENT PLANS TO SELL OFF AS MUCH AS 60 OF THE COMPANY MOSTLY TO WORKERS IN THE INDUSTRY ACCORDING TO RUSSIAN NEWS REPORTS THE REPORTS DON'T MENTION THE POSSIBILITY OF SELLING GAZPROM SHARES TO FOREIGN INVESTORS WHICH GAZPROM OPPOSES YET RIM IVANOVICH VYAKHIREV GAZPROM'S CHAIRMAN HAS A FOREBODING OF EXTINCTION NOT TOO LONG AGO THE RUSSIAN OIL INDUSTRY WAS ALSO THE BIGGEST IN THE WORLD BUT NOW IT HAS FRAGMENTED AND COLLAPSED PARTLY BECAUSE OF THE LOW PRICES PAID FOR OIL IN RUSSIA NOW THERE'S BARELY OIL ENOUGH FOR RUSSIA MR VYAKHIREV SAYS TWO OR THREE MORE YEARS OF THIS AND WE'LL BE FORCED TO BUY OIL FROM ABROAD THE PARALLEL FOR GAZPROM IS THAT IN RUSSIA'S STILLCONTROLLED MARKET THE GAS MONOPOLY IS SELLING NINETENTHS OF ITS OUTPUT AT ONETENTH THE WORLD PRICE AND THAT ISN'T LIKELY TO CHANGE SOON IN A COUNTRY TRAUMATIZED BY INFLATION INDEED THE SOARING PRICES IN RUSSIA THAT HAVE COME WITH ECONOMIC REFORMS ARE A MAJOR REASON FOR THE WIDESPREAD DISILLUSIONMENT WITH MR YELTSIN FOR HIS PART THE FEISTY MERCURIAL MR VYAKHIREV VOWS HE WON'T LET THE RUSSIAN NATURALGAS INDUSTRY GO THE WAY OF THE OIL INDUSTRY YET HE IS WELL AWARE OF HIS LIMITATIONS EVERY TIME I ASK FOR A PRICE INCREASE THEY THINK I AM AN ENEMY OF THE PEOPLE HE SAYS SOUNDING WOUNDED HE HAS PUT OFF EXPECTATIONS OF ANY REAL INCREASE IN GAS PRICES FOR AT LEAST TWO YEARS HE IS HAVING A HARD ENOUGH TIME TRYING TO PERSUADE THE GOVERNMENT TO LINK GAS PRICES TO INFLATION ONLY FOR THE 10 OR SO OF GAZPROM'S PRODUCTION THAT IT EXPORTS TO WESTERN EUROPE DOES IT COLLECT FREEMARKET PRICES IN HARD CURRENCY LAST YEAR SUCH SALES BROUGHT IN ABOUT 4 BILLION OF WHICH GAZPROM GOT NEARLY HALF AND THE GOVERNMENT THE REMAINDER IF ANY RUSSIAN ENTITY CAN BORROW ABROAD THOUGH IT IS GAZPROM THE RUSSIAN GOVERNMENT HAS AUTHORIZED THE GAS MONOPOLY TO BORROW 9 BILLION FROM THE WEST OSTENSIBLY TO MEET ITS INVESTMENT NEEDS TO KEEP THE GAS FLOWING BUT ALSO IN EFFECT TO CONTINUE SUBSIDIZING DOMESTIC GAS PRICES GAZPROM IS PLANNING MASSIVE INVESTMENTS TO FORESTALL THE KIND OF COLLAPSE IN OUTPUT THAT HIT THE OIL INDUSTRY NONETHELESS THE LOW GAS PRICES ARE TAKING A TOLL ON URENGOIGASPROM AND YAMBURGDOBCHKA THE TWO PRODUCTION ASSOCIATIONS THAT TOGETHER PRODUCE THREEQUARTERS OF RUSSIA'S GAS THEY ARE LOSING MONEY UNTIL THE END OF JANUARY GAZPROM WAS PAYING THE URENGOI AND YAMBURG ASSOCIATIONS ABOUT 200 RUBLES 40 CENTS FOR 1000 CUBIC METERS OF GAS IN TURN GAZPROM CHARGED RUSSIA'S INDUSTRIAL CUSTOMERS 1100 RUBLES 2 AND IT CHARGED WEST EUROPEANS AROUND 85 IN FEBRUARY THE GOVERNMENT ALLOWED GAZPROM TO TRIPLE DOMESTIC PRICES WITH ANOTHER REVIEW SET FOR MIDYEAR THESE PRICES ARE RIDICULOUS SNORTS RIM SULEIMANOV HEAD OF URENGOIGASPROM HE SAYS HE NEEDS A FIVEFOLD INCREASE JUST TO BREAK EVEN THIS HAS MR SULEIMANOV AND HIS COUNTERPART AT THE OTHER BIG PRODUCTION UNIT ALEXANDER MARGULOV CHAMPING AT THE BIT THEY SEE THAT THE GAS THEY SUPPLY TO GAZPROM AT RUBLE PRICES ISN'T GOING TO DO MUCH FOR THEIR OPERATIONS AND THE GAS TOWNS THEY RUN THEY WANT GAZPROM TO EASE ITS STIFLING HOLD ON THEM IT'S A MATTER OF SURVIVAL MR MARGULOV SAYS THEY ALSO WANT FOREIGN INVESTMENT AND FOREIGN PARTNERS TO GENERATE HARDCURRENCY EARNINGS FOR THEMSELVES MR SULEIMANOV WORRIES THAT URENGOI'S OUTPUT WILL DECLINE UNLESS HE BRINGS NEW FIELDS ON LINE AND HE NEEDS TO INVEST NOW TO BRING THEM INTO PRODUCTION BY 1997 WHEN URENGOI'S OUTPUT WILL BE DECLINING IT CAN'T BE DONE WITHOUT FOREIGN INVESTMENT MR SULEIMANOV SAYS BAGERS SAY THE HEADLONG RUSH TO DEVELOP GAS RESOURCES ALSO RESULTED IN MISTAKES IN DRILLING AND PRODUCTION THEY SAY THEY WOULD NEED FOREIGN EXPERTISE ALONG WITH THE INVESTMENT IN MOSCOW GAZPROM'S MANAGEMENT FEARFUL OF LOSING CONTROL OF GAS RESOURCES AND THE PRODUCTION UNITS IS RESISTING A BREAKUP GAZPROM'S TRUMP CARD IS ITS CONTROL OVER THE PIPELINES WITHOUT WHICH URENGOI AND YAMBURG COULDN'T DO MUCH BUT GAZPROM HAS SOMETHING TO FEAR AS WELL URENGOI AND YAMBURG ACCOUNT FOR THREEQUARTERS OF RUSSIA'S GAS PRODUCTION SHOULD THEY STRIKE THE IMPACT ON RUSSIA EASTERN EUROPE AND INDEED WESTERN EUROPE WOULD BE IMMENSE 9304090131 930409 GANTOS SALES FELL IN MARCH PERIOD GRAND RAPIDS MICH GANTOS INC SAID SALES FOR THE FIVE WEEKS ENDED APRIL 3 FELL 2 FROM THE YEARAGO PERIOD TO 227 MILLION THE RETAILER OF WOMEN'S APPAREL REPORTED THAT SALES DROPPED 3 AMONG STORES OPEN ONE YEAR OR LONGER SALES FOR THE FIRST NINE WEEKS OF THE YEAR WERE 376 MILLION DOWN 3 FROM A YEAR EARLIER SALES FOR STORES OPEN ONE YEAR OR LONGER DROPPED BY 3 FROM THE YEARAGO PERIOD 9304090130 930409 AMERICA WEST'S TRAFFIC OFF PHOENIX AMERICA WEST AIRLINES' MARCH TRAFFIC FELL 10 TO 9265 MILLION REVENUE PASSENGER MILES FROM LAST YEAR'S 103 BILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE FOR THE YEAR THUS FAR AMERICA WEST TRAFFIC WAS 256 BILLION REVENUE PASSENGER MILES DOWN 12 FROM LAST YEAR'S 291 BILLION LOAD FACTOR FOR THE FIRST THREE MONTHS WAS UP TO 601 FROM 583 9304090129 930409 LETTERS TO THE EDITOR IT'S EVEN WORSE IN HIS NEW AND WELCOME COLUMN CAPITAL JOURNAL ON MARCH 17 GERALD F SEIB WRITES IN THE PAST THREE DECADES THE PERCENTAGE OF CHILDREN BORN OUTSIDE OF MARRIAGE HAS RISEN FIVEFOLD FROM 5 TO 25 TODAY A STUNNING 63 OF BLACK CHILDREN ARE BORN OUT OF WEDLOCK ALAS NO LONGER THE NEWEST RATIOS JUST THIS MOMENT ARRIVED ARE RESPECTIVELY 28 AND 67 9304090128 930409 CORPORATE FOCUS A DEPRESSED BASF LOOKS FOR STIMULANT IN US UNIT GERMAN CHEMICALS GIANT FACES DOWNWARD DRIFT AT HOME AS '93 OUTLOOK DIMS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL GERMAN CHEMICAL GIANT BASF GROUP FACED WITH ZERO ECONOMIC GROWTH AT HOME IS COUNTING ON A REBOUND IN NORTH AMERICAN EARNINGS TO HELP OFFSET ITS DOWNWARD CONTINENTAL DRIFT BASF SECOND ONLY TO GERMAN RIVAL HOECHST AG WITH WORLDWIDE CHEMICAL SALES OF 445 BILLION MARKS LAST YEAR 2750 BILLION THOUGHT ITS 41 DROP IN 1992 PRETAX INCOME TO 124 BILLION MARKS WAS BAD ENOUGH SO FAR THIS YEAR THINGS HAVE GOTTEN WORSE THE COMPANY SAID SALES AT ITS MAJOR SUBSIDIARY BASF AG FELL 17 IN THE FIRST TWO MONTHS OF THIS YEAR COMPARED WITH THE YEAREARLIER PERIOD AS EUROPEAN CUSTOMER DEMAND AND PRICES FOR BULK CHEMICALS AND PLASTICS SPIRALED DOWNWARD WHILE BASF GROUP BASED IN LUDWIGSHAFEN GERMANY STILL EXPECTS TO POST A FIRSTQUARTER PROFIT IT WILL FALL SHORT OF THE YEAREARLIER PRETAX PROFIT OF 473 MILLION MARKS THE COMPANY SAYS LATE LAST MONTH THE COMPANY ALSO CUT ITS ANNUAL DIVIDEND TO 10 MARKS A SHARE FROM 12 MARKS GERMANY HAS SEEN A FURTHER DETERIORATION SINCE THE START OF THE YEAR BOTH IN PRIVATE CONSUMPTION AND IN THE INDUSTRIAL ECONOMIC CLIMATE BASF GROUP CHAIRMAN JURGEN STRUBE SAYS ORDERS IN HAND IN GERMAN BUSINESS HAVE FALLEN TO AN ALLTIME LOW AS FOR BASF GROUP'S 1993 OUTLOOK MR STRUBE SAID IT IS INCREASINGLY LIKELY THAT EARNINGS THIS YEAR WILL LAG BEHIND EVEN 1992'S LACKLUSTER RESULTS MR STRUBE SAID HE IS BEING OPTIMISTIC IN PREDICTING THAT GERMANY'S ECONOMY WILL REMAIN FLAT THIS YEAR WHILE WESTERN EUROPE AS A WHOLE MAY POST A 05 GAIN IN ECONOMIC GROWTH WESTERN EUROPE INCLUDING GERMANY ACCOUNTS FOR ABOUT TWOTHIRDS OF BASF'S SALES THE UNIFIED GERMAN ECONOMY GREW AN ANEMIC 19 LAST YEAR BASF'S PROJECTIONS HAVE LEFT INVESTORS AND SECURITIES ANALYSTS WITH AN OVERWHELMING AIR OF DEPRESSION SAYS MARTIN GLEN A SECURITIES ANALYST WITH LEHMAN BROTHERS IN LONDON IT'S NOT OFTEN ONE HEARS SALES DESCRIBED AS BEING AT AN ALLTIME LOW HE NOTES MR GLEN SAYS THAT BASF GROUP'S 1993 PRETAX INCOME IS LIKELY TO SLUMP BY NEARLY ONEFOURTH TO LESS THAN ONE BILLION MARKS MR STRUBE SAID HE ISN'T COUNTING ON THE EUROPEAN ECONOMY TO REVERSE BASF'S FORTUNES THIS YEAR OR NEXT THE MAIN INFLUENCE ON EARNINGS WILL COME FROM CUTTING COSTS INCLUDING EMPLOYMENT HE SAID BASF WHICH ALREADY HAS TRIMMED ROUGHLY 10000 JOBS SINCE 1990 SAID LAST MONTH THAT IT INTENDS TO CUT 4000 MORE JOBS THIS YEAR AND SLASH CAPITAL SPENDING BY 135 TO 42 BILLION MARKS AT YEAR'S END 1992 BASF GROUP HAD 123254 EMPLOYEES MR STRUBE DOESN'T BLAME ALL OF BASF'S TROUBLES ON THE BLEAK ECONOMIC SITUATION IN EUROPE EVEN MAKING ALLOWANCES FOR THE SOFTNESS IN THE WORLD ECONOMY WE CANNOT FEEL SATISFIED WITH THE WAY BASF HAS PERFORMED IN COMPARISON WITH INTERNATIONAL COMPETITORS HE SAID MR STRUBE SAID THE COMPANY'S GOAL IS TO STRENGTHEN ITS BUSINESSES WHERE IT IS ALREADY A SIGNIFICANT PLAYER AND CLOSE OR SELL OTHER OPERATIONS THAT AREN'T COMPETITIVE ON WORLD MARKETS AT FIRST GLANCE THE COMPANY'S NORTH AMERICAN DIVISION BASF CORP LOOKS MORE LIKE AN ANCHOR THAN AN ENGINE OF FUTURE EARNINGS GROWTH BASED IN PARSIPPANY NJ BASF CORP REPORTED A 1992 LOSS OF 1161 MILLION ON SALES OF 504 BILLION WHICH FOLLOWED A LOSS OF 475 MILLION IN 1991 ON SALES OF 496 BILLION BASF'S LOSS IN NORTH AMERICA LAST YEAR INCLUDED A CHARGE OF MORE THAN 150 MILLION FOR SEVERAL WRITEOFFS AND DIVESTITURES INCLUDED WERE THE DIVESTITURE OF BASF'S WINTERSHALL ENERGY OIL AND GAS OPERATIONS IN LOUISIANA AND THE SHUTTERING OF A COATINGS PLANT IN ANAHEIM CALIF DUE TO LOWCOST COMPETITION FROM ASIAN PRODUCERS BASF ALSO CLOSED MOST OF ITS MAGNETIC TAPE MANUFACTURING IN THE US WITH THE EXCEPTION OF A PARTNERSHIP WITH FUJI PHOTO FILM USA INC IRONICALLY BASF IS BESTKNOWN TO US CONSUMERS AS A RESULT OF ITS BOLDFACED CORPORATE INITIALS STARING OUT FROM RACKS OF VIDEO TAPES RIVAL HOECHST OWNS HOECHST CELANESE CORP IN SOMERVILLE NJ AND BAYER AG OPERATES IN THE US THROUGH ITS MILES INC SUBSIDIARY IN PITTSBURGH MORE OF BASF'S WEAK BUSINESSES WILL GO ON THE BLOCK THIS YEAR INCLUDING CERTAIN STRUCTURAL MATERIALS BUSINESSES AND BASF'S POLYESTER FIBER OPERATIONS IT ALSO WILL CLOSE A CARBON FIBER PLANT IN ROCK HILL SC LATER THIS YEAR INCLUDING EMPLOYEES TRANSFERRED WITH BUSINESSES THAT WILL BE SOLD BASF WILL CUT ITS NORTH AMERICAN PAYROLL BY MORE THAN 1000 EMPLOYEES THIS YEAR TO ROUGHLY 16000 J DIETER STEIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE NORTH AMERICAN DIVISION NOTES THAT WHILE BUSINESSES WERE BEING SOLD OR CLOSED OVER THE PAST TWO YEARS THE NORTH AMERICAN UNIT WAS INVESTING ABOUT 580 MILLION EACH YEAR IN EXISTING AND NEW BUSINESSES THIS YEAR CAPITAL SPENDING IS BEING CUT BACK TO ROUGHLY 400 MILLION WE'RE RECAPITALIZING THE BUSINESSES SO WE'RE IN A POSITION TO TAKE ADVANTAGE OF A REBOUND SAYS THE 30YEAR BASF VETERAN AND FORMER CHEMISTRY INSTRUCTOR AT THE UNIVERSITY OF MAINZ IN GERMANY ONLY LOWCOST PRODUCERS CAN SURVIVE AS MAJOR PLAYERS IN THE GLOBAL CHEMICAL INDUSTRY WE WANT TO STRENGTHEN BUSINESS SEGMENTS WHERE WE ARE ALREADY STRONG HE ADDS A PRIME EXAMPLE IS THE POLYSTYRENE RESIN BUSINESS BASF BOUGHT FROM MOBIL CORP LAST YEAR FOR AN ESTIMATED 300 MILLION NEITHER COMPANY WILL CONFIRM THE PURCHASE PRICE FOR THE BUSINESS WHICH HAS PLANTS IN JOLIET ILL SANTA ANA CALIF AND HOLYOKE MASS THE PLANTS HAVE A COMBINED ANNUAL CAPACITY OF 630 MILLION POUNDS OF THE SUBSTANCE WIDELY USED IN DISPOSABLE COFFEE CUPS AND PACKAGING THE ACQUISITION GIVES BASF ABOUT 10 OF US POLYSTYRENE CAPACITY AND MAKES IT THE THIRDLARGEST PRODUCER IN THE US BASF WHICH COMMERCIALIZED POLYSTYRENE IN THE 1930S IS WESTERN EUROPE'S LARGEST PRODUCER AND ALSO HAS A SIGNIFICANT PRESENCE IN ASIA VIA ITS OPERATIONS IN SOUTH KOREA WITH THE PURCHASE OF THE MOBIL POLYSTYRENE BUSINESS WE ARE NOW A TRULY GLOBAL PRODUCER DR STEIN SAYS LAST YEAR'S SHOPPING LIST ALSO INCLUDED OLIN CORP'S PRESSURIZEDFOAM BUSINESS WITH ITS PURCHASE LAST YEAR BASF BECAME THE LARGEST SUPPLIER OF POLYURETHANE SYSTEMS IN THE US OTHER EXISTING BUSINESSES THE COMPANY IS INVESTING IN INCLUDE A MORE THAN 100 MILLION NYLON FILAMENT PLANT IN CLEMSON SC ADDITIONS TO CHEMICAL PLANTS IN LOUISIANA AND TEXAS A POLYMERS PLANT IN MICHIGAN AND A BIOTECHNOLOGY LABORATORY IN WORCESTER MASS DR STEIN NOTES THAT THE NORTH AMERICAN DIVISION'S RELATIVELY MODEST SIZE COMPARED WITH ITS GERMAN PARENT MEANS THAT IT WON'T HAVE A DRAMATIC EFFECT ON TOTAL PROFITS IN THE IMMEDIATE FUTURE BUT IT'S HEADED IN THE RIGHT DIRECTION HE SAYS WE WILL HAVE A BIGGER PERCENTAGE OF BASF'S OPERATING EARNINGS COMING FROM THE US IN 1993 THAN IN 1992 JUST HOW MUCH REMAINS TO BE SEEN HE SAYS 9304090127 930409 LETTERS TO THE EDITOR THEY'RE ONLY HUMAN DOCTORS ARE JUST LIKE OTHER PEOPLE YOUR MARCH 19 ARTICLE EVEN BEFORE CLINTON REFORM DOCTORS SAY THEY FEEL PINCH OF GROWING COMPETITION SHOWS THAT LIKE MOST PEOPLE DOCTORS BECOME UNHAPPY WHEN THEIR INCOMES ARE THREATENED A FEW PHYSICIANS MEASURE THEIR SUCCESS ONLY BY THE AMOUNT OF MONEY THEY MAKE THE VAST MAJORITY APPLIES HIGHER STANDARDS SUCH AS THE INTELLECTUAL CHALLENGE OF MEDICINE AND THE SATISFACTION THAT COMES FROM HELPING PEOPLE 9304090126 930409 BAD WEATHER LOW PRICES CUT MINING EARNINGS MAGMA ASARCO AND CYPRUS SAY FIRSTQUARTER COSTS HELD DOWN THE RESULTS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL THE CONVERGENCE OF BAD WEATHER LOWER METAL PRICES AND HIGHER COSTS HELD DOWN FIRSTQUARTER EARNINGS FOR MOST MINING COMPANIES AND CONTINUING ECONOMIC SLUGGISHNESS WORLDWIDE INDICATES THAT INVESTORS SHOULDN'T EXPECT MUCH OF AN IMPROVEMENT THROUGHOUT THE YEAR ANALYSTS SAID MOST METAL PRICES HAVE DECLINED IN THE PAST SIX MONTHS AND YEARTODATE AVERAGE PRICES FOR 1993 ARE BELOW AVERAGE 1992 PRICES COPPER PRICES HAVE AVERAGED ABOUT 1 A POUND SO FAR THIS YEAR COMPARED WITH 103 IN 1992 NICKEL PRICES HAVE FALLEN TO 270 A POUND FROM 318 AND SILVER PRICES DECLINED TO 365 AN OUNCE FROM 395 IN 1992 GOLD PRICES AVERAGED 330 AN OUNCE FOR THE FIRST QUARTER COMPARED WITH 351 A YEAR AGO MANY COMPANIES HAVE ALREADY WARNED THEIR INVESTORS THAT THE FIRST QUARTER WON'T BE A BRIGHT ONE HEAVY RAINS IN THE SOUTHWEST IN DECEMBER AND JANUARY CURTAILED GOLD AND COPPER PRODUCTION IN THE REGION AND INTERRUPTED TRANSPORTATION OF ORE TO MILLS THE RAIN FLOODED OPEN PIT MINES AND DILUTED SOLUTIONS ON LEACH PADS THE COMPANIES SAID HEAVY SNOWS ALSO INTERRUPTED PRODUCTION AT SOME GOLD MINES AS A RESULT MAGMA COPPER CO AND ASARCO INC TWO OF THE NATION'S LARGEST COPPER PRODUCERS SAID THEY EXPECT TO REPORT THAT THE RAINS COST THEM 12 MILLION AND 20 MILLION RESPECTIVELY IN THE FIRST QUARTER CYPRUS MINERALS CORP SAID IT EXPECTS TO REPORT 23 MILLION BEFORE TAXES IN COSTS FROM THE RAIN IN THE FIRST QUARTER AND AMAX GOLD INC SAID SEVERE WINTER WEATHER HINDERED OPERATIONS AT ITS HAYDEN HILL GOLD MINE IN CALIFORNIA VICTOR LAZAROVICI ANALYST AT SG WARBURG & CO PROJECTS ASARCO WILL REPORT A LOSS OF 25 CENTS A SHARE COMPARED WITH ADJUSTED PROFIT OF 22 CENTS A SHARE A YEAR EARLIER THE COMPANY LAST YEAR ACTUALLY REPORTED A LOSS OF 115 A SHARE AFTER LARGE WRITEDOWNS FOR ACCOUNTING CHANGES MR LAZAROVICI EXPECTS CYPRUS TO REPORT PERSHARE NET OF 20 CENTS VS 22 CENTS A YEAR AGO ADJUSTED FOR NONOPERATING ITEMS FREEPORTMCMORAN COPPER & GOLD CO TO REPORT 10 CENTS VS 19 CENTS MAGMA TO REPORT 10 CENTS VS 22 CENTS AND PHELPS DODGE CORP TO REPORT 80 CENTS VS 77 CENTS PHELPS DODGE REPORTED 153 CENTS A SHARE A YEAR AGO BUT SPLIT ITS STOCK 2FOR1 SINCE THEN IT HAS SAID IT DOESN'T EXPECT TO REPORT A SIGNIFICANT IMPACT FROM THE RAINS FREEPORT WHOSE MAJOR COPPER PRODUCING MINE IS IN INDONESIA WASN'T HIT BY HEAVY RAINS IN THE US BUT TOLD ANALYSTS THAT HIGH STARTUP COSTS AT ITS COPPER MILL WILL HURT EARNINGS THROUGH THE FIRST QUARTER MR LAZAROVICI SAID GOLD COMPANY EARNINGS WILL ALSO BE FLAT TO LOWER JOHN PHIZACKERLEY ANALYST AT SHEARSON LEHMAN BROS EXPECTS NEWMONT GOLD CO TO REPORT 14 CENTS VS 22 CENTS A YEAR AGO HE EXPECTS PLACER DOME INC TO REPORT NET OF FIVE CENTS THE SAME AS LAST YEAR AND LAC MINERALS LTD TO REPORT A BREAKEVEN QUARTER COMPARED WITH NET OF THREE CENTS A SHARE LAST YEAR IN GENERAL IT'S GOING TO BE PRETTY UGLY HE SAYS THE EXCEPTION IN THE GOLD INDUSTRY WILL BE AMERICAN BARRICK RESOURCES CORP WHICH MR PHIZACKERLEY EXPECTS TO REPORT 19 CENTS VS EIGHT CENTS A YEAR AGO THE COMPANY HAD HIGHER PRODUCTION AND A SUCCESSFUL HEDGING PROGRAM HE SAYS ALTHOUGH DOMESTIC DEMAND FOR COPPER HAS RISEN AND US INVENTORIES HAVE FALLEN RECENTLY THE WORLD MARKET HAS BEEN WEAK IN THE FACE OF RISING PRODUCTION AND PRICES HAVE BEEN DAMPED BY HEFTY EXPORTS FROM THE COMMONWEALTH OF INDEPENDENT STATES SAYS JOHN GROSS EDITOR OF THE COPPER JOURNAL MR LAZAROVICI ADDS THAT JAPAN'S WEAK ECONOMY AND GERMANY'S WEAKENING ONE COULD SLOW COPPER DEMAND BY THE MIDDLE OF THE SECOND QUARTER HE CUT HIS 1993 ESTIMATE FOR ALL COPPER COMPANY EARNINGS LAST WEEK AS MUCH AS 25 9304090125 930409 LETTERS TO THE EDITOR REPRESSION CAUSED SALVADOR'S WAR MAX SINGER'S ARTICLE THE WAR WAS THE REAL CRIME IN EL SALVADOR AMERICAS COLUMN OPED PAGE MARCH 19 THROUGH A COMBINATION OF SELECTIVE REPORTING AND GLARING OMISSIONS PRESENTS A STUNNINGLY DISTORTED HISTORY OF THE PAST 20 YEARS IN EL SALVADOR THE UNITARIAN UNIVERSALIST SERVICE COMMITTEE SUPPORTED SOCIAL PROGRAMS IN EL SALVADOR AS EARLY AS 1973 AND HAS ORGANIZED FACTFINDING DELEGATIONS THERE FOR MORE THAN 30 MEMBERS OF CONGRESS FROM BOTH HOUSES AND BOTH PARTIES WE'VE FOLLOWED THE STORY CLOSELY AND ARE AMAZED AT MR SINGER'S OMISSIONS HE IGNORES THE CONTEXT OF VIOLENCE AND ELECTORAL FRAUD OUT OF WHICH THE FMLN THE MARXIST GUERRILLA COALITION GREW THERE'S NO MENTION OF THE PRESIDENTIAL ELECTIONS IN 1972 AND 1977 EACH OF WHICH WERE HIJACKED BY THE MILITARY THROUGH ELECTORAL FRAUD ASSASSINATION AND IN 1977 THE PUBLIC MASSACRE OF PEACEFUL DEMONSTRATORS HE FAILS TO ACKNOWLEDGE THE SAVAGE REPRESSION OF FARM WORKER ORGANIZATIONS TRADE UNIONS CHRISTIAN DEMOCRAT AND OTHER LEGITIMATE POLITICAL PARTY WORKERS BY NATIONAL GUARD POLICE AND DEATH SQUAD OPERATIVES DURING THE LATE 1970S IN ARGUING THAT THE FMLN IN 1980 ATTACKED A REFORMIST GOVERNMENT HE FAILS TO MENTION THAT THAT GOVERNMENT CAME APART THREE MONTHS AFTER IT WAS ESTABLISHED WHEN MILITARYRELATED DEATH SQUADS DROVE THE JUNTA'S MOST REFORMIST MEMBERS INTO EXILE MURDERED THE ATTORNEY GENERAL AND WENT ON A RAMPAGE OF VIOLENCE THAT INCLUDED THE KILLING OF THE FOUR AMERICAN CHURCH WORKERS THE DIRECTORATE OF THE OPPOSITION COALITION THE FDR ARCHBISHOP ROMERO AND THOUSANDS MORE THE CIVIL WAR GREW OUT OF YEARS OF UNABATED VIOLENCE AND THE DENIAL OF THE MOST BASIC DEMOCRATIC FREEDOMS BY THE MILITARYDOMINATED GOVERNMENT MR SINGER'S FINAL IMPLICATION THAT THE FMLN WAS SOMEHOW MORE RESPONSIBLE FOR THE KILLING OF JESUITS THAN THOSE WHO ACTUALLY PULLED THE TRIGGER CONFIRMS THAT HE IS NOT A SERIOUS POLITICAL ANALYST I WAS AMAZED TO READ MR SINGER'S STATEMENT ON THE SALVADORAN TRUTH COMMISSION WHICH YOU GRAPHICALLY HIGHLIGHTED NONE OF THE CRIMES COMMITTED BY THE SALVADORAN MILITARY WHICH THE TRUTH COMMISSION INVESTIGATED WOULD HAVE BEEN COMMITTED IF THE FMLN HAD NOT STARTED THE WAR WHAT NEXT THE SOUTH AFRICAN MILITARY WOULD NOT HAVE KILLED ANY CIVILIANS IF THE BLACKS HAD NOT STARTED BEING AGGRESSIVE IN THE FACE OF SOME OF THE MORE BRUTAL REPRESSIONS OF THE 1980S FINANCED IN PART BY HIS TAX DOLLARS I AM SADDENED BY MR SINGER'S ATTEMPT TO DIVERT ATTENTION FROM THE INTERNATIONALLY RECOGNIZED REAL TRAGEDY OF THE SALVADORAN WAR YOUR CROOKED LOGIC IN YOUR MARCH 19 EDITORIAL SALVADOR AND NICARAGUA FAILS IN THE ATTEMPT TO DRESS UP A HORROR MAID EL SALVADOR WITH THE COSTUME OF A CINDERELLA VIA THE SIMPLE SUBTERFUGE OF COMPARING IT WITH ANOTHER HORROR MAID NICARAGUA YOU MISSED THE WHOLE POINT THE POINT THE AMERICAN MEDIA AND THE UN MAKE ABOUT THESE TWO TOTALITARIAN MONSTERS IS NOT THAT HUMAN RIGHTS IN EL SALVADOR WOULD BE IN BETTER CONDITION TODAY IF THE LEFT HAD WON RATHER THE POINT IS THAT A US GOVERNMENT FULLY AND UNCONDITIONALLY SUPPORTED A POLICY OF CRIME BY THE SALVADORAN GOVERNMENT AGAINST ITS PEOPLE AND USED MAJOR EFFORTS TO DISGUISE THE FACTS FROM THE AMERICAN PEOPLE THEREBY FURTHERING THE CAUSE OF THE CRIMINALS THE PARALLEL IN THESE STORIES IS INDEED VERY CLOSE TWO GOVERNMENTS USING ILLEGAL POWERS NOT A DEMOCRATIC SYSTEM OF JUSTICE TO COMMIT CRIMES AGAINST THEIR PEOPLE IN THE NAME OF IDEOLOGY BUT THE URTICANT OFFENSE TO US THE AMERICAN PEOPLE IS THAT OUR GOVERNMENT HELPED ONE OF THESE CRIMINAL POWERS COMMIT THESE CRIMES AND FROM ALL APPEARANCES OUR GOVERNMENT ALSO PLOTTED TO HIDE THE FACTS THAT THE SALVADORAN GOVERNMENT WAS GUILTY OF THESE CRIMES LET THERE BE NO DOUBT BOTH CRIMINAL GOVERNMENTS KILLED AND TORTURED THEIR VERY OWN FOR NO OTHER REASON THAN PRESUMED OR PROVEN POLITICAL DISSENSION I AM PROUD THE US STOOD AGAINST NICARAGUA'S COMMUNISTS BUT I AM ASHAMED THAT WE HELPED THE EXTREME RIGHTISTS IN EL SALVADOR WE SHOULD NEVER DEFEND CRIMINALS BECAUSE THEY HAPPEN TO BE AGAINST OUR IDEOLOGICAL FOES 9304090124 930409 LEISURE & ARTS AN EASTER EGG FOR ALL SEASONS BY FREDERIKA RANDALL ALBA ITALY PEOPLE WHO LIKE GOOD FOOD KNOW THIS PRETTY PIEDMONTESE TOWN WITH ITS CURVING STREETS AND TALL MEDIEVAL TOWERS PERCHED ON THE TANARO RIVER SOUTH OF TURIN THIS IS THE HOME OF HEAVY RICH BAROLO RED WINE AS WELL AS THE SITE OF ITALY'S MOST IMPORTANT WHITETRUFFLE MARKET AND THE LOCAL LANGHE DISTRICT COOKING IS JUSTLY FAMOUS BUT FOR THE YOUNG THE HUNGRY AND OTHER SWEETSUBSTANCE ABUSERS ALBA HAS AN EVEN MORE PRESSING CLAIM TO FAME AT THE HEART OF THE CITY'S INDUSTRIAL ZONE IS A VAST SPREADING FACTORY BOUND TOGETHER BY DUCTS AND VENTS ITS TALL SILVER STACKS PUFFING OUT CHOCOLATESMELLING FUMES NOT A SINGLE SIGN OUTSIDE IDENTIFIES IT BUT FOR THOSE WHO HAVE REASON TO KNOW THIS IS THE HEAD PLANT OF THE GLOBAL CONFECTIONERY AND SNACKFOOD GIANT FERRERO SPA MAKERS OF NUTELLA SPREAD FIESTA BARS TIC TAC MINTS POCKET COFFEE MON CHERI AND FERREROROCHER BONBONS NOT TO MENTION THE CROWNING GLORY OF THE MOMENT THE KINDER SORPRESA SOME SAY THE HOLLOW EGGSIZED KINDER SURPRISE A MILKCHOCOLATE SHELL LINED WITH A LAYER OF WHITE CHOCOLATE IS ONE OF THE LATE 20TH CENTURY'S MOST APPEALING WAYS TO PACKAGE 07 OUNCES OF MASSMARKETQUALITY CHOCOLATE TRUE MANY OF THOSE WHO HOLD THIS VIEW ARE WELL UNDER 18 YEARS OF AGE AND QUITE A FEW OF THEM ARE LESS HOOKED ON THE CHOCOLATE PER SE THAN ON THE TINY TOYS ENCLOSED IN THE YOLKLIKE PLASTIC CAPSULE SEALED INSIDE THE SHELL JUVENILE COLLECTORS PRIZE THE SERIES OF MINIATURE HIPPO CROCODILE GNOME AND FROG FIGURINES OLDER ONES CRAVE THE MINUTE ASSEMBLY KITS WITH FIVE TO 10 PLASTIC PIECES PREWORLD WAR II AIRPLANES ANCIENT SAILING VESSELS BUTTERFLIES AND BIRDS ARE AMONG THE CURRENT NUMBERED SERIES LAST YEAR'S SURPRISES INCLUDED LOCOMOTIVES TRACTORS AND AUTOMOBILES THE CLEVER KINDER SURPRISE IS REALLY NOTHING MORE THAN A 365DAYAYEAR VERSION OF THIS COUNTRY'S TYPICAL EASTER EGG A TRADITIONAL UOVO DI PASQUA IS MADE OF CHOCOLATE AND USUALLY HAS SOMETHING SILLY INSIDE A LIGHTHEARTED EASTER PRESENT TO KEEP AFTER THE CHOCOLATE IS CONSUMED MANY OF THESE ARE NOW ON LASTMINUTE SALE IN BARS AND PASTRY SHOPS ALL OVER ITALY THEY RANGE FROM FACTORYPRODUCED 63OUNCE EGGS FILLED WITH SOCCER PARAPHERNALIA TO FABULOUS HANDFINISHED 66POUND MONSTERS IN WHICH THE PASTRY SHOP WILL PLACE A PERSONAL GIFT A DIAMOND RING EVEN MEANWHILE THE KINDER SURPRISE EASTER EGG FOR EVERY DAY POSITIONED FOR IMPULSE BUYING NEAR CASH REGISTERS EVERYWHERE COMES NEATLY PACKED IN BOXES OF 96 NESTLED IN FOUR LAYERS OF CRATES THE PACKAGING IS SO EYECATCHING THAT CHILDREN IN MOST EUROPEAN COUNTRIES PROBABLY KNOW THE BRAND NAME BY THE TIME THEY REACH ONE YEAR OF AGE IN FACT THE EGG'S RIVETING IMPACT ON TODDLERS HAS OBLIGED THE MANUFACTURER TO ENCLOSE A WARNING ABOUT THE DANGER TO INFANTS OF SMALL PARTS THE WARNING IN GERMAN ENGLISH FRENCH ITALIAN SPANISH PORTUGUESE DUTCH SWEDISH NORWEGIAN FINNISH DANISH AND ARABIC IS THE MOST ELOQUENT SIGN OF THE REACH OF KINDERMANIA FERRERO GOT ITS START WITH A WARTIME RECIPE FOR ERSATZ CHOCOLATE MADE OF PIEDMONTESE HAZELNUTS THAT RECIPE LATER EVOLVED INTO NUTELLA THE GOOEY BROWN SPREAD NOW LOADED WITH NUT OIL AND COCOA BUTTER THAT TEENAGERS CONTINUE TO LATHER ON BREAD DESPITE ITS WIDESPREAD REPUTATION AS THE CHIEF CAUSE OF ACNE AS A GENERATION OF POSTWAR ITALIANS GREW UP WITH NUTELLA THE COMPANY'S ALBA FACTORY BLOSSOMED INTO A MODEL OF OLDFASHIONED PATERNALISTIC CAPITALISM OWNER MICHELE FERRERO BUILT HOUSING FOR HIS WORKERS LED THEM ON PILGRIMAGES TO LOURDES AND EVEN INSTALLED A TOWERING STATUE OF THE MADONNA IN THE FACTORY YARD TODAY ALTHOUGH MR FERRERO OVERSEES A WORLDWIDE EMPIRE HE MAINTAINS FIRM TIES WITH ITALY'S CHRISTIAN DEMOCRATIC PARTY AND WITH THE CATHOLIC CHURCH LOCAL WAGS SOMETIMES SAY THE FERRERO NAME IS BENEDETTO OR BLESSED BECAUSE OF RUMORS THAT CATHOLIC RELIEF ORGANIZATIONS OWN SIGNIFICANT SHARES IN THE COMPANY AMONG FERRERO'S PRIORITIES ARE MARKETING AND ENGINEERING THE REPORTED SIX YEARS OF RESEARCH TO PERFECT POCKET COFFEE A SHOT OF ESPRESSO INSIDE A SQUARE OF CHOCOLATE HAVE LED TO A LONGSTANDING HABIT OF SECRECY IN A STRANGE CASE LAST MONTH POLICE LEARNED THAT AN EMPLOYEE OF A LOCAL COMPANY SUPPLYING THE PLASTIC SURPRISES TO FERRERO HAD HER PHONE BUGGED BY PRIVATE INVESTIGATORS BECAUSE SHE WAS SUSPECTED OF PASSING ON INDUSTRIAL SECRETS TO A RIVAL FIRM THE ALBA PLANT TOO IS BLANKETED IN SECRECY WITH BULLETPROOF PLEXIGLAS AND UNIFORMED SECURITY GUARDS AT THE ENTRANCE LENDING A DISMAL PRISONLIKE AIR TO THE FACILITY THAT MAKES CHEERY CHOCOLATES FOR CHILDREN THE ONLY SIGN OF LIFE AT THE WORKERS' ENTRANCE GATE IS A LARGE SIGN ANNOUNCING AN UPCOMING LOURDES TOUR INSIDE ROBOT ARMS PUT THE SURPRISES INSIDE THE CHOCOLATE OTHER TECHNOLOGICAL INNOVATIONS ARE SAID TO BE IN STORE IT'S A FAR CRY FROM TRADITIONAL CONFECTIONERS SUCH AS PETTETI ON ALBA'S MAIN STREET WHERE THE CHOCOLATE AND HAZELNUT SWEETS INVENTED IN PIEDMONT AMONG THEM THE TARTUFO ARE ON SALE THERE ARE PROBABLY MORE OUTSTANDING CHOCOLATE CHEFS IN THIS REGION THAN ANYWHERE ELSE IN ITALY BUT MANY OF THEIR PRODUCTS DON'T TRAVEL STILL PIEDMONT'S TRADITIONS ARE ANYTHING BUT NARROW OR INSULAR THE 19THCENTURY DRIVE TO NATIONAL UNITY CALLED THE RISORGIMENTO STARTED HERE AND MORE RECENTLY PIEDMONTESE INDUSTRIES HAVE BEEN AMONG THE MOST EXPANSIVE PROVIDING A GLUE TO STICK ITALY TOGETHER THE NUTELLA GENERATION STICKS TOGETHER AND THE KINDER COHORT IS LIKELY TO DO THE SAME IT'S NOT EXACTLY PRODUCING WHAT YOU WOULD CALL NATIONAL COHESION IN THESE DAYS OF NORTHERN SECESSIONIST THREATS BUT AS ITALY AND THE REST OF EUROPE PREPARE FOR EASTER WITH PREVIOUS CERTAINTIES ABOUT UNIFICATION SHAKEN A SHARED ENTHUSIASM FOR CHOCOLATE EGGS WITH GOOFY PRIZES INSIDE COULD BE AS GOOD A BASIS AS ANY FOR REHATCHING THE IDEA OF EUROPE MS RANDALL IS A JOURNALIST IN MILAN 9304090123 930409 LETTERS TO THE EDITOR AIRLINE CODE SHARING YOUR MARCH 11 ARTICLE CODE SHARING LEAVES FLIERS UP IN THE AIR MAY LEAVE READERS WITH THE BELIEF THAT THE AIRLINE PRACTICE OF CODE SHARING IS INTENDED TO DECEIVE THE TRAVELING PUBLIC THAT IS NOT TRUE SINCE DEC 23 1985 THE DEPARTMENT OF TRANSPORTATION HAS REQUIRED CARRIERS SHARING DESIGNATOR CODES TO PROVIDE FREQUENT PERIODIC NOTICE OF SUCH ARRANGEMENTS IN ADVERTISEMENTS AND IN DIRECT CONTACT WITH CONSUMERS ADDITIONALLY CARRIERS PROVIDE THIS INFORMATION TO THE COMPUTER RESERVATIONS SYSTEMS USED BY TRAVEL AGENTS AS WELL AS DIRECTLY TO TRAVEL AGENTS 9304090122 930409 BANGKOK BANK STEERS OFF PROFITABLE PATH THAILAND'S BIGGEST COMMERCIAL BANK IS DIVERSIFYING BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK BANGKOK BANK LTD CONFRONTING PRESSURES NEW TO THAILAND'S LONGPROTECTED BANKING INDUSTRY IS STEERING A COURSE AWAY FROM THE BUSINESSES THAT HAVE MADE IT ONE OF THE WORLD'S MOST PROFITABLE BANKS WHETHER THESE EFFORTS YIELD MUCH REMAINS TO BE SEEN THAILAND'S BIGGEST COMMERCIAL BANK HAS ENJOYED FOUR YEARS OF SPECTACULAR PROFIT GROWTH LAST YEAR WHEN NET INCOME GREW 45 IT WAS NAMED ONE OF THE WORLD'S FIVE MOST PROFITABLE BANKS BY IBCA LTD A BRITISH CREDITRATING AGENCY BUT THE CONDITIONS THAT MADE SUCH IMPRESSIVE GAINS POSSIBLE ARE FADING AND THE INDUSTRY APPEARS TO BE HEADED FOR TOUGHER TIMES INTERESTRATE MARGINS THE DIFFERENCE BETWEEN THE RATES BANKS PAY DEPOSITORS AND THOSE THEY RECEIVE FROM BORROWERS ARE AT THEIR WIDEST SINCE 1986 AND ARE LIKELY TO NARROW THE GOVERNMENT HAS TIGHTENED CAPITALADEQUACY REQUIREMENTS AND IN MARCH 20 FOREIGN BANKS RECEIVED PERMISSION TO COMPETE WITH DOMESTIC BANKS THOUGH NOT FOR BAHTDOMINATED BUSINESS FORTY PERCENT PROFIT GROWTH IS SOMETHING DIFFICULT TO ACHIEVE YEAR IN AND YEAR OUT SAYS VICHIT SURAPHONGCHAI BANGKOK BANK'S 48YEAROLD PRESIDENT MR VICHIT PROJECTS 20 PROFIT GROWTH THIS YEAR BANGKOK BANK FORESEES A SLOWDOWN IN THE COMMERCIALBANKING BUSINESS THAT HAS SERVED IT SO WELL CORPORATE LENDING MAKES UP 90 OF ITS LOANS THE BANK IS PUTTING MORE EMPHASIS ON THE HIGHERMARGIN RETAIL BUSINESS AND MOUNTING A PUSH IN INVESTMENT BANKING AND OTHER ACTIVITIES THAT GENERATE NONINTEREST INCOME IT ALSO IS EXPANDING INTO CHINA AND INDOCHINA EXPLOITING ITS CLOSE TIES WITH SOUTHEAST ASIA'S OVERSEAS CHINESE BUSINESSMEN IN THE HOPE OF BECOMING A LEADING REGIONAL BANK ANALYSTS SAY THE DIVERSIFICATION WILL TAKE YEARS TO PAY OFF AND THE BANK FACES A PERIOD OF SLOWER GROWTH FOR 1992 THE BANK POSTED A PROFIT OF 1054 BILLION BAHT 417 MILLION ON TOTAL ASSETS OF 666 BILLION BAHT FOLLOWING PROFIT GROWTH OF 54 IN 1991 AND 89 IN 1990 ON TWO IMPORTANT MEASURES OF PROFITABILITY RETURN ON SHAREHOLDERS' EQUITY AND RETURN ON ASSETS BANGKOK BANK STOOD AT 23 AND 16 LAST YEAR RESPECTIVELY COMPARED WITH 19 AND 12 IN 1991 ON THAT SCORE BANGKOK BANK PROBABLY IS THE MOST PROFITABLE BANK IN ASIA ONLY FOUR YEARS AGO BANGKOK BANK WASN'T WELL REGARDED BY RIVALS BECAUSE OF THE HUGE PROBLEM DEBTS IT INCURRED IN THE EARLY 1980S THEY AMOUNTED TO MORE THAN 10 OF THE BANK'S LOANS IN 1989 ACCORDING TO TARA SIAM BUSINESS INFORMATION LTD A FINANCIAL CONSULTANT IN BANGKOK THE BANK'S HONG KONG BRANCH GOT STUCK WITH DOUBTFUL LOANS AFTER A PROPERTY SLUMP AT HOME CUSTOMERS WHO HAD BORROWED EXCESSIVELY IN FOREIGN CURRENCIES HAD TROUBLE REPAYING THEIR LOANS WHEN THE BAHT WAS DEVALUED 14 IN 1984 MR VICHIT THEN HEAD OF THE BANK'S OVERSEAS BRANCHES AND TREASURY RESPONDED WITH A SIMPLE TURNAROUND STRATEGY IN THE LATTER HALF OF THE 1980S THE BANK SET ASIDE AMPLE BADDEBT PROVISIONS AND HELD ON TO FORECLOSED PROPERTIES UNTIL PRICES BOOMED IN BANGKOK AND HONG KONG IN 1990 PROCEEDS FROM HONG KONG SALES HELPED ITS OVERSEAS OPERATIONS RETURN TO PROFITABILITY THAT YEAR THE BANK'S SURGING DOMESTIC BUSINESS HELPED PICKED UP THE SLACK IN THE PAST FOUR YEARS BANGKOK BANK ALSO OWES MUCH OF ITS SPECTACULAR PERFORMANCE TO ITS DOMINANT POSITION IN THAILAND'S PROTECTED BANKING INDUSTRY THE BANK CONTROLS 25 OF THE COUNTRY'S DEPOSITS AND IS ALMOST TWICE THE SIZE OF ITS CLOSEST RIVAL AS A RESULT IT HAS CONSIDERABLE INFLUENCE ON INTERESTRATE MOVEMENTS ALTHOUGH CREDIT DEMAND SLOWED LAST YEAR BECAUSE OF SLUGGISH GROWTH IN PRIVATE INVESTMENT INTERESTRATE MARGINS WIDENED TO 4 PERCENTAGE POINTS FROM 3 PERCENTAGE POINTS BECAUSE LOAN RATES HADN'T FALLEN AS FAST AS DEPOSIT RATES BANKERS AND ANALYSTS AGREE THAT INTERESTRATE MARGINS WILL NARROW THIS YEAR WITH THE ENTRANCE OF FOREIGN BANKS INTO THAILAND'S FOREIGNCURRENCY LENDING MARKET COMPETITION TO LEND TO BLUECHIP THAI COMPANIES THE TARGET CUSTOMERS FOR FOREIGN BANKS ALREADY IS PUSHING DOWN THE PRIME LENDING RATE WHICH IS ABOUT 11 THE CENTRAL BANK OF THAILAND FEARING A DRAIN ON DEPOSITS HAS WARNED BANKS AGAINST REDUCING DEPOSIT RATES MUCH FURTHER THIS IS A NEW ERA IN WHICH 20 NEW BANKS HAVE COME TO PUT ON THEIR BOOKS NEW LOANS TO SHOW THEY'VE DONE SOMETHING MR VICHIT SAYS I SEE STRONG COMPETITION IN THE WHOLESALEBANKING BUSINESS AND THE PIE ISN'T EXPANDING MR VICHIT SAYS THAI BANKING'S FUTURE RESTS WITH THE BOOMING HUGE MIDDLECLASS SECTOR THAT BANGKOK BANK IS TARGETING WITH A PUSH INTO RETAIL BANKING THE BANK WILL FOCUS ON IMPROVING ITS CREDITCARD CHECKINGACCOUNT AND OTHER BASIC RETAIL SERVICES IT ALSO EXPECTS TO GENERATE MORE INCOME FROM SUCH PRODUCTS AS HOME LOANS MUTUAL FUNDS AND INSURANCE POLICIES BUT ANALYSTS SAY EVEN MIGHTY BANGKOK BANK HAS AN ACHILLES' HEEL IN THIS AREA COMPUTERIZATION CRUCIAL TO SERVICING HIGHVOLUME RETAIL BUSINESS HAS LONG BEEN NEGLECTED IN THE BANKING SECTOR ON ANOTHER FRONT BANGKOK BANK IS MOUNTING A BIG PUSH INTO INVESTMENT BANKING TO BOOST FEEBASED INCOME SUCH FEES ACCOUNT FOR 10 OF ITS INCOME MORE THAN THAILAND'S INDUSTRY AVERAGE OF 8 BUT LOW BY OTHER INTERNATIONAL BANKS' STANDARDS THE EFFORT TO INCREASE PROFITABILITY INSTEAD OF MARKET SHARE HAS LED SOME BANKS TO RAISE FEES ON CREDIT CARD ACCOUNTS LETTERS OF CREDIT AND LOAN GUARANTEES BANGKOK BANK'S EMPHASIS ON NONINTEREST INCOME IS UNDERSCORED BY THE MERGER ANNOUNCED THREE WEEKS AGO OF ITS TREASURY AND MERCHANTBANKING DIVISIONS THE BANK SAYS THE MOVE IS AIMED AT CAPTURING MORE BUSINESS AS AN ADVISER LENDER AND INVESTOR IN THE COUNTRY'S MAJOR INFRASTRUCTURAL AND PETROCHEMICAL PROJECTS HEADING THE INVESTMENTBANKING GROUP IS 33YEAROLD CHARTSIRI SOPHONPANICH ELDEST SON OF CHAIRMAN CHATRI AND SCION OF THE PROMINENT FAMILY THAT CONTROLS AN ESTIMATED 30 TO 35 OF THE BANK THROUGH A WEB OF INVESTMENT VEHICLES THE JOB WILL HELP HIM DEVELOP CONTACTS IN THE CLOSEKNIT THAI BUSINESS COMMUNITY IT WAS THE RELATIONSHIPS THAT MR CHARTSIRI'S GRANDFATHER THE LATE CHIN SOPHONPANICH FORGED WITH ETHNIC CHINESE IN ASIA THAT HELPED BANGKOK BANK ESTABLISH 18 OVERSEAS BRANCHES BANGKOK BANK IS EXPLOITING TWO OF ITS MOST PRIZED ASSETS A REGIONAL FRANCHISE AND ITS CHINESE CONNECTIONS TO LAUNCH A SECOND PHASE OF REGIONAL EXPANSION LAST YEAR THE BANK OPENED WHAT IT HOPES WILL BE THE FIRST OF THREE OR FOUR CHINA BRANCHES ALSO LAST YEAR BANGKOK BANK FOLLOWED ITS CLIENTELE TO INDOCHINA FOREIGN BANKERS SAY THAT IN SEVERAL YEARS BANGKOK BANK MAY BE ABLE TO CHALLENGE SUCH REGIONAL RIVALS AS HONG KONG & SHANGHAI BANKING CORP LTD HONG KONG BANK AND OTHER FOREIGN BANKS ARE ONLY ABLE TO DO BITS OF THAT BUSINESS IN EVERY MARKET BUT BANGKOK BANK IS ABLE TO FOLLOW THESE OVERSEAS CHINESE ALL OVER ASIA SAYS DAVID HENDRIX CITIBANK'S COUNTRY MANAGER FOR THAILAND 9304090121 930409 REVIEW & OUTLOOK EDITORIAL ASIDES EASTER MEETS CHRISTMAS RECALL ALL OUR EDITORIALS ON LITIGATION TO BAN PUBLIC CHRISTMAS SCENES NOW EASTER THE ARCHBISHOP OF CINCINNATI DANIEL PILARCZYK HAS GONE TO COURT TO OVERTURN A LOCAL FIRE MARSHAL'S ORDER BANNING CANDLES DURING THE EASTER VIGIL AS A FIRE HAZARD A JUDGE DELAYED THE CASE UNTIL JUNE SO A RITUAL EXTENDING BACK TO THE CATACOMBS WILL PROCEED BUT STAY TUNED 9304090120 930409 FINANCING BUSINESS MEGATEST CORP MEGATEST CORP SAN JOSE CALIF SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION AN INITIAL PUBLIC OFFERING OF 18 MILLION COMMON SHARES AT 10 TO 12 EACH ROBERTSON STEPHENS & CO IS THE LEAD UNDERWRITER THE MAKER OF TEST EQUIPMENT FOR THE SEMICONDUCTOR INDUSTRY SAID IT WILL HAVE 56 MILLION SHARES OUTSTANDING AFTER THE OFFERING 9304090119 930409 NOTICE TO READERS STOCK AND COMMODITY MARKETS IN THE US ARE CLOSED TODAY IN OBSERVANCE OF GOOD FRIDAY MANY BANKS AND MOST BUSINESSES WILL BE OPEN TODAY IS A NORMAL BUSINESS DAY FOR FEDERAL AGENCIES AND THERE WILL BE MAIL DELIVERIES MANY WORLD MARKETS ARE CLOSED TODAY AND MONDAY BUT JAPANESE MARKETS WILL REMAIN OPEN 9304090118 930409 FINANCING BUSINESS SHOWBOAT INC SHOWBOAT INC A LAS VEGAS HOTELCASINO CONCERN FILED A REGISTRATION STATEMENT FOR A PUBLIC OFFERING OF 275 MILLION PRINCIPAL AMOUNT OF FIRST MORTGAGE BONDS DUE 2008 VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9304090117 930409 REVIEW & OUTLOOK EDITORIAL HUMAN RIGHTS AND WRONGS IF YOU'RE LOOKING OUT TO THE HORIZON FOR A GLIMPSE OF ONCOMING DISPUTES KEEP YOUR EYE ON THE GROWING ASIAN IMPATIENCE WITH WESTERN NOTIONS OF DEMOCRACY AND HUMAN RIGHTS THE CHIEF TARGET AT THE REGIONAL CONFERENCE ON HUMAN RIGHTS HELD RECENTLY IN BANGKOK WASN'T IRAQ WITH ITS RITUAL SLAUGHTER OF KURDS IT WASN'T BURMA WHICH HAS REFUGEES FLEEING ON TWO FRONTS NO THE TARGET WAS THE WEST A DELEGATE FROM IRAN NOTED THAT THE WEST HAD ITS OWN PROBLEMS AND THEREFORE SHOULD TAKE A FRESH LOOK AND REASSESSMENT OF OTHER COUNTRIES' PRIORITIES THE MESSAGE OF THE CONFERENCE WHICH WAS SUPPOSED TO SET AN ASIAN AGENDA FOR THE UNSPONSORED WORLD HUMAN RIGHTS CONFERENCE IN JUNE WAS SIMPLE BACK OFF LET THE ASIAN WAY MAKE ITS OWN COURSE WE SYMPATHIZE WITH THE COMPLAINT THAT SOME WESTERN HUMANRIGHTS ACTIVISTS CAN BE IN THE WORDS OF THAI FOREIGN MINISTER PRASONG SOONSIRI SELFRIGHTEOUS AND CENSORIOUS BUT THERE ARE SUBSTANTIVE ISSUES INVOLVED IN THE DISCUSSION OF HUMAN RIGHTS AND IT IS THESE THAT BEAR THOUGHT ONE PERSPECTIVE TRIES TO ARGUE THAT EAST IS EAST AND WEST IS WEST AND THAT'S THAT BURMA'S U WIN MRA TOLD THE CONFERENCE ASIAN COUNTRIES WITH THEIR OWN NORMS AND STANDARDS SHOULD NOT BE DICTATED TO BY A GROUP OF OTHER COUNTRIES WHO ARE FAR DISTANT GEOGRAPHICALLY POLITICALLY ECONOMICALLY AND CULTURALLY U WIN MRA'S IDEA SEEMS TO BE THAT BECAUSE BURMA IS WELL BURMESE ANY VALUES THAT CAN BE ATTRIBUTED TO A WESTERN TRADITION MAY BE DISMISSED AS INAPPROPRIATE U WIN MRA AND THE NUMEROUS DELEGATES WHO ECHOED HIM MISS THE FACT THAT THE TREATMENT OF HUMAN BEINGS HAS BECOME AN ISSUE IN ASIA NOT BECAUSE THE WEST MADE IT SO BUT BECAUSE ASIANS HAVE THE PEOPLE OF TAIWAN THROUGH STEADY AND MOSTLY PEACEFUL PRESSURE HAVE EARNED FOR THEMSELVES A DEGREE OF LIBERTY THAT IS FANTASTIC TO THEIR BROTHERS IN MAINLAND CHINA SOUTH KOREANS HAVE FORCED THEIR GOVERNMENT TO RESPECT AND PROMOTE THEIR BASIC POLITICAL RIGHTS AS CITIZENS AND FIND THE LIVES OF THEIR BRETHREN IN NORTH KOREA INCOMPREHENSIBLE THE PHILIPPINES IS ENDLESSLY TROUBLED BUT THERE HAS BEEN NO TURNING BACK FROM DEMOCRACY AND WITH THE WITHERING OF THE COMMUNIST INSURGENCY THE HUMANRIGHTS SITUATION HAS IMPROVED FOR EVERYONE THE IRRITATION OF MANY OF THE 49 NATIONS REPRESENTED AT THE BANGKOK CONFERENCE IS THAT SIMILAR IDEAS HAVE TAKEN HOLD AT HOME BURMA MIGHT FIND THE IDEA OF PERSONAL LIBERTY LESS THREATENING IF HUNDREDS OF THOUSANDS OF BURMESE HAD NOT RALLIED TO THE BANNER WHEN IT WAS RAISED BY AUNG SAN SUU KYI CHINA WOULDN'T FIND FANG LIZHI SUCH A PEST OR KEEP WEI JINGSHENG IN JAIL IF IT DIDN'T BELIEVE THAT THE CAUSES OF DEMOCRACY AND INDIVIDUAL RIGHTS THAT THESE TWO SO ELOQUENTLY ESPOUSE WOULD STRIKE A CHORD AMONG THE CHINESE PEOPLE IN FACT THE WAY BURMA INTERPRETS INDIVIDUAL RIGHTS THERE ARE NONE IS DIFFERENT FROM THE WAY MALAYSIA DOES WITH ITS HIGH DEGREE OF ECONOMIC AND INDIVIDUAL FREEDOM AND WHILE MALAYSIA HAS BEEN AMONG THE MOST OUTSPOKEN IN TELLING THE WEST TO KEEP ITS VALUES TO ITSELF IT IS ALSO AMONG THE FEW ASIAN COUNTRIES TO CRITICIZE RANGOON'S RECORD VIETNAM JUST SENTENCED EIGHT DISSIDENTS TO JAIL SOUTH KOREAN PRESIDENT KIM YOUNG SAM LAST MONTH LET A GROUP OF THEM OUT IN THIS AGE OF SATELLITES AND FAXES ANY COMPELLING IDEA WILL SPREAD QUICKLY UNPREDICTABLY AND IN VARIOUS FORMS ONE WAY OR OTHER THOSE NEW IDEAS WILL BE PUT TO A PUBLIC TEST OF APPROVAL OR REJECTION IN A WAY THAT IS ULTIMATELY BEYOND THE POWER OF GOVERNMENTS TO CONTROL FULLY TO ATTEMPT TO STOP THE INFORMATION WAVE AND THE PUBLIC PLEBISCITES IT BRINGS TO THE SHORES OF THE PACIFIC WILL BE FUTILE 9304090116 930409 COMPAQ PLANS TO UNVEIL PACT WITH MICROSOFT TECHNOLOGYSHARING ACCORD AIMS TO BOOST FIRMS IN EMERGING PC LINES BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP AND MICROSOFT CORP WILL ANNOUNCE A BROAD TECHNOLOGYSHARING AGREEMENT NEXT WEEK AIMED AT BOOSTING BOTH COMPANIES' PRESENCE IN SOME OF THE HOTTEST AREAS OF PERSONAL COMPUTING THOUGH BOTH COMPANIES DECLINED TO COMMENT ON THE PACT PEOPLE CLOSE TO THE AGREEMENT SAY COMPAQ AND MICROSOFT ARE WORKING TOGETHER ON NEW PRODUCTS AND IT IS HOPED NEW STANDARDS IN THE AREAS OF MOBILE COMPUTING PENBASED PCS AND POWERFUL MULTIPROCESSOR COMPUTERS AND SERVERS IT WASN'T CLEAR HOWEVER WHAT THE NEW STANDARDS WILL BE ANALYSTS SAY THE MOVE COULD MEAN THAT COMPAQ WHICH NOW CONTROLS ABOUT 8 OF THE PERSONAL COMPUTER MARKET HAS EMERGED AS THE LATEST IN A STRING OF BIG HARDWARE COMPANIES THAT HAVE COZIED UP TO MICROSOFT WHILE COMPAQ IS HARDLY THE FIRST TECHNOLOGY COMPANY TO WORK CLOSELY WITH MICROSOFT DIGITAL EQUIPMENT CORP HAS BEEN CLOSELY TIED TO MICROSOFT AS IT DEVELOPS ITS NEW ALPHA CHIP FOR INSTANCE INDUSTRY WATCHERS SAY THE NEW ALLIANCE COULD BE THE CLOSEST CURRENT LINK BETWEEN MICROSOFT AND A PERSONAL COMPUTER MAKER SOFTWARE COMPANIES GET A LOT OUT OF WORKING WITH VERY SERIOUS HARDWARE ENGINEERS SAID RICHARD A SHAFFER EDITOR OF THE COMPUTER LETTER A NEW YORK INDUSTRY NEWSLETTER MICROSOFT HAS ALREADY BENEFITED FROM COMPAQ'S UNDERSTANDING OVER THE YEARS ECKHARD PFEIFFER COMPAQ'S CHIEF EXECUTIVE OFFICER AND MICROSOFT CHAIRMAN WILLIAM GATES WILL HOLD A TELEPHONE NEWS BRIEFING FROM WASHINGTON DC TUESDAY TO DETAIL THE ALLIANCE MR GATES IS SCHEDULED TO SPEAK IN WASHINGTON NEXT WEEK AT THE FEDERAL OFFICE SYSTEMS EXHIBITION AN INDUSTRY TRADE SHOW THOUGH THE TWO COMPANIES HAVE LONG BEEN TECHNOLOGY PARTNERS THE ANNOUNCEMENT SIGNALS A SIGNIFICANT ENHANCEMENT OF THOSE TIES INDEED AS EVIDENCE OF THEIR BEEFEDUP COMMITMENT THEY HAVE AGREED TO CONTRIBUTE TO A FUND FOR JOINT MARKETING AND DEVELOPMENT WORK AND TO HIRE ADDITIONAL MARKETING MANAGERS TO OVERSEE THE SWAPPING OF TECHNOLOGY MICROSOFT WATCHERS SAY THE REDMOND WASH COMPANY HAS BEEN PARTICULARLY FRUSTRATED BY THE SLOW DEVELOPMENT OF THE MARKET FOR PEN COMPUTERS A LOGJAM THAT IT APPARENTLY HOPES ITS COMPAQ TIES WILL HELP SOLVE MICROSOFT MARKETS A PENBASED OPERATING SYSTEM CALLED PEN WINDOWS WHICH HAS BEEN HAMSTRUNG BY A PAUCITY OF PEN HARDWARE SYSTEMS COMPAQ FOR ITS PART HAS PLEDGED TO SELL A PENBASED MACHINE BUT NO NEW PRODUCT HAS YET BEEN ANNOUNCED SIMILARLY WHILE A SLEW OF NEW MOBILE COMPUTING PRODUCTS HAS BEEN ANNOUNCED IN RECENT MONTHS COMPAQ HAS YET TO UNVEIL A MACHINE AND NO CLEAR HARDWARE LEADERS HAVE EMERGED IF THERE IS A LEADER IN THIS INDUSTRY IT'S MICROSOFT BUT THEY CAN'T DO IT ON THEIR OWN SAYS RICK G SHERLUND AN ANALYST AT GOLDMAN SACHS & CO IN NEW YORK THEY WANT TO CREATE A CATALYST SOMETHING TO PUSH THE MARKET FORWARD MICROSOFT ALSO IS EXPECTED ON TUESDAY TO OUTLINE AN ALLIANCE WITH COMPUTER ASSOCIATES THE LEADING INDEPENDENT SUPPLIER OF SOFTWARE FOR MAINFRAME AND MINICOMPUTERS INDUSTRY WATCHERS SUGGESTED THAT COMPUTER ASSOCIATES WILL PROMISE TO RELEASE A VERSION OF ITS UNIPACK MAINFRAME SOFTWARE FOR MICROSOFT'S FORTHCOMING WINDOWS NT SOFTWARE NT IS DESIGNED FOR HIGHEND PCS THAT ARE INCREASINGLY TAKING ON THE TASKS ONCE PERFORMED ONLY BY LARGER COMPUTERS SEPARATELY MICROSOFT SAID IT HAS SHIPPED 25 MILLION COPIES OF WINDOWS THE COMPANY SAID IT IS SHIPPING ABOUT ONE MILLION COPIES OF WINDOWS A MONTH G PASCAL ZACHARY CONTRIBUTED TO THIS ARTICLE 9304090115 930409 MEDICALSUPPLY FIRMS EXPECT SLOWER GROWTH FIRSTPERIOD RESULTS LIKELY TO REFLECT CUSTOMERS' WORRIES ON HEALTH CARE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL MEDICALSUPPLY COMPANIES ARE EXPECTED TO REPORT SLOWER GROWTH IN FIRSTQUARTER SALES AND EARNINGS MOSTLY BECAUSE OF CUSTOMERS' ANXIETIES ABOUT PENDING HEALTHCARE CHANGES UNTIL RECENTLY MEDICALSUPPLY COMPANIES HAVE BEEN RACKING UP GROWTH OF 10 TO 30 A YEAR IN SALES AND EARNINGS BRISK DEMAND FROM DOCTORS AND HOSPITALS HAS HELPED INCREASE SALES OF GOODS RANGING FROM SUTURES AND NEEDLES TO COMPLEX HEART PACEMAKERS AND ULTRASOUND MACHINES BUT LATELY DEMAND HAS WANED IT'S PRETTY CLEAR THAT THE HEALTHCARE REFORM PROCESS IS TAKING A TOLL SAYS DANIEL LAMAITRE A MEDICALSUPPLIES ANALYST AT COWEN & CO DOCTORS AND HOSPITALS ARE COMING UNDER INCREASED SCRUTINY FROM INSURERS WHO WANT TO HOLD DOWN COSTS THAT IS TRANSLATING INTO REDUCED USE OF ALL KINDS OF MEDICAL EQUIPMENT HE SAYS AS A RESULT MR LAMAITRE SAYS ACROSS THE BOARD YOU WILL SEE DISAPPOINTING RESULTS FOR THE FIRST QUARTER AMONG THE COMPANIES EXPECTED TO POST LOWER EARNINGS IS ACUSON CORP A MOUNTAIN VIEW CALIF MAKER OF ULTRASOUND MACHINES ROBERT GALLAGHER THE COMPANY'S CHIEF FINANCIAL OFFICER SAYS ANALYSTS' ESTIMATES THAT THE COMPANY WILL POST PERSHARE EARNINGS OF 17 CENTS TO 20 CENTS ARE REASONABLE THAT WOULD BE DOWN SHARPLY FROM THE YEAREARLIER 35 CENTS A SHARE IT'S GOING TO BE A DIFFICULT YEAR MR GALLAGHER SAYS OVERALL ECONOMIC TIMES HAVE AFFECTED HOSPITALS' BUYING DECISIONS WE'RE SEEING LOTS OF INTEREST IN OUR PRODUCTS AMONG RADIOLOGISTS BUT HOSPITAL ADMINISTRATORS ARE DELAYING PURCHASES LAST WEEK BOSTON SCIENTIFIC CORP A MAKER OF VARIOUS MEDICAL DEVICES SAID THAT ITS FIRSTQUARTER REVENUE GROWTH HAD FALLEN BELOW EXPECTATIONS THE COMPANY'S CHIEF FINANCIAL OFFICER LAWRENCE BEST ALSO ESTIMATED THAT BOSTON SCIENTIFIC EARNED 15 CENTS A SHARE IN THE QUARTER THAT WOULD BE UP FROM 13 CENTS A SHARE A YEAR EARLIER BUT ANALYSTS HAD BEEN EXPECTING 18 CENTS A SHARE FOR THIS YEAR'S FIRST QUARTER IN DISCLOSING ITS SLOWDOWN BOSTON SCIENTIFIC BLAMED DELAYS IN GETTING FOOD AND DRUG ADMINISTRATION APPROVAL FOR NEW DEVICES AND A SLOWERTHANEXPECTED STARTUP OF ITS BRITISH SUBSIDIARY ALSO EXPECTING TO REPORT SLOWER FIRSTQUARTER SALES GROWTH IS CR BARD INC WHICH MAKES CATHETERS AND OTHER MEDICAL EQUIPMENT PHILIP SELIGMAN AN ANALYST AT VALUE LIE INC SAID THE COMPANY'S US DISTRIBUTORS APPEAR TO BE SLOWING DOWN THEIR PRODUCT ORDERS DUE TO THE UNCERTAINTY SURROUNDING PRESIDENT CLINTON'S HEALTHCARE PROPOSALS BARD'S TREASURER DUKE PARKER SAID IN MARCH THAT THE COMPANY EXPECTS TO REPORT FIRSTQUARTER PERSHARE EARNINGS WITHIN A RANGE OF 39 CENTS TO 41 CENTS THAT WOULD BE AT LEAST A 21 INCREASE FROM A YEAR EARLIER BUT WOULD BE A DROPOFF FROM BARD'S EARNINGS GROWTH OF 25 TO 35 IN PREVIOUS QUARTERS ANALYSTS EXPECT THE LARGEST MEDICAL SUPPLY COMPANY JOHNSON & JOHNSON CO TO POST ABOUT A 10 FIRSTQUARTER EARNINGS GAIN THAT IS ONLY SLIGHTLY BELOW HISTORICAL GROWTH RATES FOR THE COMPANY BECAUSE JOHNSON & JOHNSON GETS ABOUT HALF ITS REVENUE OUTSIDE THE US THE STRENGTHENING DOLLAR AGAINST EUROPEAN CURRENCIES MAY PRODUCE NEGATIVE CURRENCY ADJUSTMENTS FOR ITS OVERSEAS OPERATIONS ANALYSTS SAID WITHIN THE MEDICALSUPPLY SECTOR ANALYSTS EXPECT STRONGER RESULTS FROM BECTON DICKINSON & CO NELLCOR INC AND STRYKER CORP NEW PRODUCTS ARE HELPING THOSE COMPANIES BECTON DICKINSON IS ACTIVE IN DEVELOPING WAYS TO REDUCE NEEDLESTICK INJURIES AND NELLCOR HAS LAUNCHED SOME NEW BLOODOXYGEN MONITORS THAT ARE USED BY ANESTHESIOLOGISTS BECTON DICKINSON AND NELLCOR DECLINED TO COMMENT ON THEIR FIRSTQUARTER PERFORMANCE STRYKER'S CHIEF FINANCIAL OFFICER DAVID SIMPSON CONFIRMED THAT ANALYSTS ARE EXPECTING FIRSTQUARTER EARNINGS OF ABOUT 30 CENTS A SHARE BUT WOULDN'T COMMENT FURTHER THAT WOULD REPRESENT EARNINGS GROWTH OF ABOUT 30 FOR STRYKER WHICH MAKES SURGICAL INSTRUMENTS STRETCHERS AND MATERNITY BEDS SOME MEDICALSUPPLY COMPANIES THAT ARE LIKELY TO SHOW STRONG FIRSTQUARTER GROWTH MAY STILL BE HEADED FOR SLOWDOWNS LATER IN THE YEAR ANALYSTS SAID RECENTLY SEVERAL ANALYSTS HAVE CUT THEIR 1993 EARNINGS ESTIMATES FOR ONE OF THE INDUSTRY'S LONGTIME HIGHFLIERS US SURGICAL CORP KURT KRUGER AN ANALYST AT HAMBRECHT & QUIST INC EXPECTS US SURGICAL TO REPORT THAT EARNINGS GREW 28 IN THE FIRST QUARTER TO 63 CENTS A SHARE BUT HE AND OTHER ANALYSTS THIS WEEK SLASHED THEIR FULLYEAR 1993 ESTIMATES SOME ANALYSTS EXPECT US SURGICAL TO EARN JUST 175 A SHARE DOWN MORE THAN 25 FROM 1992 WE ARE BECOMING INCREASINGLY CONCERNED ACROSS ALL SPECIALTIES BY THE SURPRISINGLY STRONG PREEMPTIVE APPROACH BY PHYSICIANS TO SPENDING CUTS AS WE AWAIT SPECIFIC POLICY ANNOUNCEMENTS FROM WASHINGTON MR KRUGER SAID US SURGICAL CONFIRMED ANALYSTS' CONCERNS THIS WEEK SAYING IT EXPECTS SECONDQUARTER EARNINGS WILL BE SHARPLY DOWN FROM YEAREARLIER LEVELS THE COMPANY SAID FULLYEAR RESULTS ALSO WOULD BE LOWER THOUGH SOLIDLY PROFITABLE US SURGICAL WHICH MAKES SURGICAL STAPLING INSTRUMENTS AND LAPAROSCOPIC INSTRUMENTS USED IN GALLBLADDER OPERATIONS SAID IT IS COMFORTABLE WITH ANALYSTS' FIRSTQUARTER ESTIMATES OF 61 CENTS TO 64 CENTS A SHARE 9304090114 930409 BEVERAGE FIRMS EXPECTED TO POST 1STPERIOD GAINS COCACOLA'S PROFIT INCREASE IS PUT AT ABOUT 17 PEPSI'S AS MUCH AS 20 BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL THE BEVERAGE COMPANIES ARE EXPECTED TO POST MOSTLY HIGHER FIRSTQUARTER EARNINGS BOLSTERED BY THE CONTINUING UPTICK IN CONSUMER SPENDING COCACOLA CO IS EXPECTED TO REPORT EARNINGS GAINS OF ABOUT 17 ANALYSTS SAID WHILE PEPSICO INC'S NET INCOME IS EXPECTED TO HAVE JUMPED BETWEEN 17 AND 20 COCACOLA ENTERPRISES INC IS EXPECTED TO POST A SLIGHTLY IMPROVED FIRST QUARTER BUT SOME ANALYSTS ARE STILL ANTICIPATING A SMALL LOSS AT A&W BRANDS INC EARNINGS COULD BE FLAT WHILE NET INCOME IS EXPECTED TO HAVE FALLEN AT ANHEUSERBUSCH COS THE QUARTER ALSO MARKS THE FIRST REPORTED PERIOD FOR DR PEPPER/SEVENUP COS AND SNAPPLE BEVERAGE CO SINCE GOING PUBLIC RECENTLY ANALYSTS ANTICIPATE THAT BOTH COMPANIES WILL POST SOLID EARNINGS ATLANTABASED COCACOLA IS EXPECTED TO HAVE EARNED ABOUT 34 CENTS A SHARE UP FROM 29 CENTS A SHARE THE YEAR EARLIER ANALYSTS ESTIMATE THAT FIRSTQUARTER VOLUME ROSE ABOUT 3 IN THE US AND ABOUT 3 TO 4 INTERNATIONALLY IN OVERSEAS MARKETS SUCH AS JAPAN GERMANY ITALY AND BRAZIL COKE'S SALES REMAIN SOFT BECAUSE OF ECONOMIC TENSIONS THE VOLUME INCREASES WERE BELOW NORMAL BUT WE CALL IT RESPECTABLE CONSIDERING THE ECONOMIC CONDITIONS ABROAD SAID JOSEPH DOYLE AN INDUSTRY ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO EARNINGS AT PEPSI BASED IN PURCHASE NY ARE EXPECTED BY ANALYSTS TO HAVE INCREASED TO BETWEEN 34 AND 35 CENTS A SHARE FROM 29 CENTS A YEAR EARLIER DOMESTIC VOLUME ROSE ABOUT 4 HELPED BY THE LAUNCH OF CRYSTAL PEPSI AND STRONG SALES OF MOUNTAIN DEW SAID EMANUEL GOLDMAN OF PAINEWEBBER INC AMONG ITS SNACKFOOD AND RESTAURANT DIVISIONS PEPSI IS EXPECTED TO REPORT STRONG RESULTS FRITOLAY SHOULD TURN IN A POSITIVE QUARTER WITH A 10 INCREASE IN UNIT VOLUME THANKS TO SOLID SALES OF ITS MULTIGRAIN SNACK SUN CHIPS AND ITS LAYS AND RUFFLES POTATOCHIP BRANDS PROFITS CLIMBED ABOUT 15 FOR TACO BELL KFC AND PIZZA HUT COMBINED ACCORDING TO MR GOLDMAN HE ALSO EXPECTS SAMESTORE SALES ROSE 3 AT TACO BELL AND PIZZA HUT WITH KFC COMING IN SLIGHTLY HIGHER A&W BRANDS OF WHITE PLAINS NY IS EXPECTED TO REPORT FLAT EARNINGS OF ABOUT 28 CENTS A SHARE VOLUME LEVELS WERE OFF 6 TO 7 IN JANUARY AND FEBRUARY BUT REBOUNDED IN MARCH ANALYSTS SAID FOR THE QUARTER VOLUME OF CONCENTRATE SALES WILL BE DOWN ABOUT 2 SAID SMITH BARNEY'S MR DOYLE COKE AND PEPSI BOTTLERS WHICH DISTRIBUTE ABOUT 60 OF A&W BRANDS' BEVERAGES WERE BUSY DISTRIBUTING OTHER PRODUCTS NAMELY CRYSTAL PEPSI SAID MR DOYLE AS A RESULT HE ADDED THAT CUT INTO A&W'S DISTRIBUTION IN THEIR FIRST PUBLIC QUARTER DR PEPPER/SEVENUP AND SNAPPLE BEVERAGES ARE EXPECTED TO HAVE RACKED UP STRONG RESULTS DR PEPPER/SEVENUP OF DALLAS IS EXPECTED TO REPORT EARNINGS OF ABOUT 17 CENTS A SHARE COMPARED WITH A PROFORMA FIGURE OF 13 CENTS A YEAR EARLIER MR GOLDMAN ESTIMATED HE ADDED THAT SNAPPLE WILL REPORT ABOUT 13 CENTS A SHARE VS A PRO FORMA THREE CENTS A SHARE A YEAR EARLIER SNAPPLE IS BENEFITING FROM ITS ENTRY LAST YEAR INTO NEW MARKETS IN THE MIDWEST AND SOUTH COCACOLA ENTERPRISES THE GIANT COKE BOTTLER BASED IN ATLANTA IS EXPECTED TO HAVE HAD A BREAKEVEN QUARTER OR TO HAVE SLIGHTLY IMPROVED EARNINGS PAINEWEBBER'S MR GOLDMAN ESTIMATES ONE CENT A SHARE VS A LOSS OF TWO CENTS A SHARE LAST YEAR VOLUME IS ESTIMATED TO HAVE INCREASED 3 ST LOUISBASED ANHEUSERBUSCH IS EXPECTED TO REPORT FIRSTQUARTER EARNINGS OF ABOUT 69 CENTS A SHARE ANALYSTS SAID DOWN FROM 74 CENTS A YEAR EARLIER SHIPMENTS WERE DOWN ABOUT 7 AND SALES TO RETAIL OUTLETS WERE OFF 2 DUE TO RAINY WEATHER IN CALIFORNIA AND THE WINTER BLIZZARD THAT SLAMMED THE EAST COAST ALSO A NEW BREWERY IN GEORGIA WHICH HAS GIVEN THE COMPANY ADDITIONAL CAPACITY MEANS INVENTORIES DIDN'T HAVE TO BE BUILT UP SO EARLY IN THE YEAR BUT ONE ANALYST SAID THE EXPECTED EARNINGS DECLINE IS INDICATIVE OF A GREATER PROBLEM THE EARNINGS OUTLOOK FOR ANHEUSERBUSCH HAS BEEN DEPENDENT ON PROJECTED PRICE INCREASES SAID MR DOYLE OF SMITH BARNEY BUT AS CONSUMERS CONTINUE TO TRADE DOWN TO LESSEXPENSIVE BREWS ANHEUSERBUSCH WON'T BE ABLE TO RAISE PRICES AND COULD FIND ITSELF VULNERABLE BECAUSE OF THE HIGH PORTION OF ITS VOLUME THAT IS PREMIUMPRICED HE SAID 9304090112 930409 TECHNOLOGY & HEALTH GAPS IN HEALTH COVERAGE IN FAMILIES ARE FORESEEN WASHINGTON NEARLY HALF OF THE FAMILIES IN AMERICA HAVE A MEMBER WHO WILL BE WITHOUT ADEQUATE HEALTH INSURANCE THIS YEAR ACCORDING TO A REPORT FROM FAMILIES USA THE STUDY RELEASED BY THE HEALTHCARE REFORM ADVOCACY GROUP CONCLUDED THAT 46 OF THE FAMILIES IN THE US WILL AT SOME POINT IN 1993 HAVE A MEMBER WHO DOESN'T HAVE INSURANCE WILL LOSE INSURANCE OR WILL HAVE INSURANCE THAT FAILS TO COVER MAJOR MEDICAL COSTS FAMILIES USA EXECUTIVE DIRECTOR RON POLLACK SAID THAT PRESENTING THE PROBLEM IN TERMS OF THE FAMILY UNIT WHICH THE GROUP DEFINED AS RELATIVES LIVING UNDER THE SAME ROOF SHOULD INDICATE THE TRUE NATURE OF THE ISSUE IT'S OBVIOUSLY NOT A PHENOMENON OF 37 MILLION PEOPLE SAID MR POLLACK CITING STATISTICS ON THE NUMBER OF AMERICANS WITHOUT HEALTH INSURANCE THE GROUP HOPES THAT ITS REPORT REINFORCES THE URGENCY FOR REFORM AND SENDS A MESSAGE TO THE GOVERNMENT I THINK THAT WHAT THE AMERICAN PUBLIC WANTS IS A PLAN THAT TAKES AWAY THEIR WORRIES THAT THEIR FAMILIES ARE GOING TO FALL THROUGH THE CRACKS MR POLLACK SAID 9304090111 930409 POTOMAC WATCH GOOD NEWS SIGNS OF TRUCE IN CULTURE WARS BY PAUL A GIGOT THE HOLIEST WEEK OF THE RELIGIOUS YEAR BEGAN IN THE NATION'S CAPITAL WITH THIS PALM SUNDAY PLEASANTRY HOW YA DOIN' ASKED A DRIVER IN A WHITE BASEBALL CAP AS REPORTED BY SERGE KOVALESKI IN THE WASHINGTON POST FINE REPLIED A WOMAN PEDESTRIAN APRIL FOOLS SAID THE DRIVER WHO THEN FIRED A SINGLEBARREL PUMP SHOTGUN AT THE PREGNANT WOMAN WHO SOMEHOW SURVIVED TO TELL THE TALE SO GOES THE BANALITY OF AMERICA'S SOCIAL PATHOLOGY THAT'S THE BAD NEWS THE GOOD NEWS IN THIS PASSOVEREASTER WEEK IS THAT THE ICE MAY BE BREAKING AROUND THE DEBATE OVER THE CAUSES OF THAT PATHOLOGY LAST YEAR'S PRESIDENTIAL ELECTION ONCE LOOKED TO BE THE DEATH OF DISCUSSION ON FAMILY VALUES AND AMERICAN CULTURE INSTEAD THE OUTCOME HAS BEEN LIBERATING CONSERVATIVES OR AT LEAST SMART CONSERVATIVES HAVE HAD TO EXAMINE HOW THEIR MESSAGE WENT AWRY LIBERALS OR AT LEAST HONEST LIBERALS ARE SUDDENLY WITHOUT A REPUBLICAN WHITE HOUSE TO BLAME AND SO ARE FREE TO REPORT WHAT THEY ACTUALLY SEE THROW IN SOME POPULIST STIRRINGS AND THE RESULT IS A FERMENT OVER CULTURE THAT IS SURE TO SHAPE THE POLITICS OF THE 1990S DAVID BLANKENHORN A DEMOCRAT RUNS AN OASIS CALLED THE INSTITUTE FOR AMERICAN VALUES IN THE CULTURAL DESERT OF MANHATTAN HIS COLLEAGUE BARBARA DAFOE WHITEHEAD RECENTLY WROTE AN ARTICLE IN THE ATLANTIC DAN QUAYLE WAS RIGHT HER PIECE IS A SOCIALSCIENCE SATURATION BOMBING ABOUT THE HARM THAT FAMILY DISSOLUTION IS DOING TO CHILDREN AND TO THE SOCIAL FABRIC THE ARTICLE HAS DRAWN AS MUCH RESPONSE AS ANY IN THE MAGAZINE'S PAST 30 YEARS I THINK THERE IS A SHIFT IN THE CENTER OF GRAVITY SAYS A PLEASANTLY SURPRISED MR BLANKENHORN THE NEW CONSENSUS IF THERE IS ONE AFTER SHAKING OFF THE BURDEN OF THE 1992 DEBATE IS THAT WE REALLY DO HAVE A PROBLEM IT'S CALLED FAMILY DECLINE IT'S NOT THE ECONOMY STUPID' IT'S THE CULTURE MR BLANKENHORN SAYS HE FINDS A GROWING POPULAR AWARENESS THAT THERE ARE OR SHOULD BE MORAL PURPOSES LARGER THAN SELFACTUALIZATION OR RIGHTS WHILE AMERICANS REJECTED THE CULTURE WAR FORMULA OF THE GOP HOUSTON CONVENTION HE SAYS THEY ALSO REJECT THE TOLERANCEDIVERSITY AGENDA OF PRESIDENT CLINTON'S EARLY DAYS IN OFFICE THE BODY POLITIC MAY HAVE ARRIVED AT A NEW SYNTHESIS OF TOLERANT TRADITIONALISTS HIS POINT IS SUPPORTED BY OTHER LIBERALS MUGGED BY REALITY THE COMMUNITARIANS IN HIS NEW BOOK A SPIRIT OF COMMUNITY FOUNDER AMITAI ETZIONI SPLITS HIS TIME BETWEEN DENYING HE'S A CONSERVATIVE AND SOUNDING LIKE ONE ON THE RIGHT MEANWHILE FRESH THINKING COMES FROM THE LIKES OF DON EBERLY A FORMER AIDE TO JACK KEMP MR EBERLY FLED THE BELTWAY VAPORS IN THE 1980S TO FOUND THE COMMONWEALTH FOUNDATION IN HARRISBURG PA BUT HE'S LEARNED THAT EVEN AMISH COUNTRY CAN'T ESCAPE SOCIAL TRAUMA THE LOCAL HIGH SCHOOL JUST CANCELLED A DANCE OUT OF FEAR OF GANG VIOLENCE WHERE DO YOU HAVE TO GO IN AMERICA TO FIND QUALITY OF LIFE MR EBERLY ASKS DISTILLING A THEME HE THINKS WILL DOMINATE AMERICAN PUBLIC LIFE CONSERVATIVES HE SAYS HAVE BEEN AS MISTAKEN AS LIBERALS IN ASSUMING THAT BROKEN FAMILIES CAN BE PATCHED WITH POLITICAL POWER ALONE CHANGES IN TAX OR WELFARE LAWS CAN HELP BUT HE ALSO DETECTS AND WANTS TO PROMOTE A BROADER GROUNDSWELL TO ALTER THE CULTURE THAT IS THE ROOT OF FAMILY DISSOLUTION HIS BUMPER STICKER IS A NEW CITIZENSHIP MR EBERLY SUGGESTS A NATIONAL ORGANIZATION OF FATHERS THAT WOULD REBUILD THE INSTITUTION OF FATHERHOOD HE POINTS TO A GROWING CAMPAIGN EVEN AMONG SOCIAL CONSERVATIVES FOR FLEXTIME IN THE WORKPLACE AND EVEN AMONG LIBERALS FOR TEACHING CHARACTER IN SCHOOLS NOTE WELL THAT HE IS NOT SUGGESTING WOMEN SHOULD RETURN TO THEIR 1950S ROLES I DO NOT KNOW ANY MAN WHO WANTS HIS DAUGHTER OR HIS WIFE TO HAVE FEWER ECONOMIC OPPORTUNITIES MR EBERLY SAYS HE AND OTHERS TALK INSTEAD ABOUT THE RIGHTS AND DUTIES OF PARENTS THE EBERLYBLANKENHORN OPTIMISM IS REINFORCED BY EVENTS AT THE GRASSROOTS WHEN WILLIAM BENNETT RELEASED HIS INDEX OF LEADING CULTURAL INDICATORS HIS 1800 NUMBER RECEIVED 72000 REQUESTS IN ONE WEEK IN QUEENS A PARENTS' REVOLT DEPOSED THE SCHOOLS CHANCELLOR IN ILLINOIS A TEACH AMERICA CHOICE PLAN FOR PRIVATE SCHOOLS JUST PASSED A STATE SENATE COMMITTEE IN CLEVELAND A GROUP HAS FORMED TO GUIDE TEENAGE FATHERS BILL KRISTOL DAN QUAYLE'S FORMER CHIEF OF STAFF SAYS THE PARENTS' RIGHTS MOVEMENT MAY NOW BE WHERE THE TAX REVOLT WAS IN 1974 SIMMERING BUT UNNOTICED NOW WORKING WITH THE BRADLEY FOUNDATION THE MILWAUKEE PHILANTHROPY MR KRISTOL INVITED BOTH MESSRS EBERLY AND BLANKENHORN TO A PRIVATE CONFERENCE HERE THIS WEEK TO DISCUSS PARENTS' RIGHTS NONE OF THIS IS ON WASHINGTON'S AGENDA YET BUT IF IT HAS ANY POWER IT WILL CHALLENGE BOTH PARTIES THE GOP DANGER IS THAT AFTER THE HOUSTON DEBACLE IT WILL SHRINK FROM SOCIAL ISSUES ALTOGETHER PRESIDENT CLINTON'S DANGER IS HIS POLITICAL COALITION HIS CAMPAIGN GOVERNMENTS DON'T RAISE CHILDREN PARENTS DO PROVED MR CLINTON KNOWS THE LANGUAGE OF VALUES BUT AS ON SO MUCH ELSE HIS ADMINISTRATION HAS SO FAR STRESSED ONLY THE RIGHTS AGENDA OF THE LEFT WITH GAYS IN THE MILITARY SUBSIDIES FOR ABORTION AND THE STATE AS NANNY HE NEEDS A LONG TALK WITH WILLIAM GALSTON HIS DOMESTIC POLICY AIDE AND THE REFORMED LIBERAL WHO FIRST DESCRIBED AMERICANS AS A MAJORITY OF TOLERANT TRADITIONALISTS SOMETHING HOPEFUL IS STIRRING IN THE LAND THAT MATTERS MUCH MORE THAN THE FATE OF MR CLINTON'S 16 BILLION SPENDING BILL 9304090110 930409 TECHNOLOGY TENNESSEE GOVERNOR SETS PLAN TO REPLACE MEDICAID NASHVILLE TENN GOV NED MCWHERTER UNVEILED A PLAN TO REPLACE TENNESSEE'S MEDICAID SYSTEM WITH A SYSTEM OF MANAGED COMPETITION WHICH HE SAYS WILL COVER ALL OF THE STATE'S POOR AND UNINSURED THE PROPOSED PROGRAM WHICH WOULD BEGIN JAN 1 1994 WOULD INSURE THE STATE'S ONE MILLION MEDICAID RECIPIENTS AS WELL AS PROVIDING COVERAGE FOR ABOUT 500000 UNINSURED RESIDENTS THOSE INDIVIDUALS WOULD BE PLACED IN HEALTH MAINTENANCE ORGANIZATIONS AND SIMILAR MEDICAL NETWORKS DESIGNED TO CHECK THE GROWTH IN HEALTHCARE EXPENDITURES MR MCWHERTER SAID MONEY FOR THE PROGRAM WOULD COME FROM 23 BILLION IN FEDERAL FUNDING FOR INDIGENT HEALTH CARE IN TENNESSEE THE AMOUNT THE FEDERAL GOVERNMENT WOULD HAVE SPENT FOR MEDICAID OTHER MONEY FOR THE PROGRAM WOULD COME FROM THE AMOUNT THAT HOSPITALS CURRENTLY COSTSHIFT TO PAYING CUSTOMERS 9304090109 930409 INDIA'S PERSONALCAREPRODUCTS MARKET IS STIRRED UP BY UNILEVER P&G MOVES BY SUMAN DUBEY SPECIAL TO THE WALL STREET JOURNAL BOMBAY INDIA A MULTIMILLIONDOLLAR MERGER AND A HIGHPROFILE JOINT VENTURE PROMISE TO WHIP INDIA'S COMPETITIVE MARKET FOR DETERGENTS SOAPS AND PERSONALCARE PRODUCTS INTO A FROTH BOTH DEALS WERE PROMPTED MAINLY BY THE OPPORTUNITIES AND COMPETITIVE PRESSURES CREATED BY PRIME MINISTER PV NARASIMHA RAO'S 20MONTHOLD ECONOMIC REFORM PROGRAM ANALYSTS SAY THEY COULD MARK THE START OF A TREND TOWARD WIDESPREAD CORPORATE CONSOLIDATIONS AND ALLIANCES AS THE GOVERNMENT CONTINUES TO REMOVE TARIFFS AND BARRIERS TO NEW ENTERPRISES AND FOREIGN INVESTMENT LAST MONTH 76YEAROLD TATA OIL MILLS CO OR TOMCO AND MARKET LEADER HINDUSTAN LEVER LTD A 61YEAROLD SUBSIDIARY OF ANGLODUTCH HOUSEHOLDPRODUCTS GIANT UNILEVER PLC ANNOUNCED THEY WERE MERGING THE CONSOLIDATION A STOCK SWAP WITH A MARKET VALUE OF ABOUT 104 BILLION RUPEES 336 MILLION IS THE BIGGEST IN INDIAN CORPORATE HISTORY THE DEPARTURE OF AILING TOMCO FROM THE TATA GROUP INDIA'S LARGEST CONGLOMERATE WAS LONG EXPECTED BUT HINDUSTAN LEVER HADN'T BEEN TOUTED AS A LIKELY BUYER BUT BOTH COMPANIES HAD COMPELLING REASONS TO PURSUE THEIR UNION ONLY THREE MONTHS EARLIER RELATIVE NEWCOMER PROCTER & GAMBLE INDIA LTD AND 65YEAROLD GODREJ SOAPS LTD SAID THEY WERE FORMING A JOINT VENTURE TO MANUFACTURE SYNTHETIC DETERGENTS AND MARKET TOILETRIES PROCTER & GAMBLE INDIA IS 65OWNED BY PROCTER & GAMBLE CO CINCINNATI THE LEVER MERGER IS A RESPONSE TO THE P&GGODREJ TIEUP SAYS KMS AHLUWALIA CHAIRMAN OF MARG MARKETING & RESEARCH GROUP ECHOING A WIDELY HELD PERCEPTION AMONG ANALYSTS INDEED THE MOVES WILL LIKELY INTENSIFY THE FIERCE RIVALRY IN INDIA'S 40 BILLIONRUPEESAYEAR SOAP AND DETERGENT MARKET COMPETITION IS EXPECTED TO BE STIFFEST AMONG HIGHEREND PRODUCTS WHERE PROFIT MARGINS ARE HIGH AND GROWTH STRONG AND THE DEALS BRING PARTICULAR STRENGTHS TO THE PLAYERS INVOLVED BY ABSORBING TOMCO HINDUSTAN LEVER WITH SALES OF 2087 BILLION RUPEES LAST YEAR POSSESSES A PRODUCT LINEUP THAT INCLUDES WELLKNOWN BRANDS IN NEARLY ALL SEGMENTS OF THE MARKET WHILE THE SMALLER GODREJ SOAPS TAPS THE EXPERTISE OF P&G A GLOBAL POWERHOUSE THAT GAINS ENTREE TO A RELATIVELY NEW MARKET OFFICIALS AT HINDUSTAN LEVER DESCRIBE THE MERGER WITH TOMCO AS A RESPONSE TO A CHANGING BUSINESS ENVIRONMENT AND SAY THE SPEED WITH WHICH IT WAS ARRANGED ILLUSTRATES THE EFFECTIVENESS OF THE RAO ADMINISTRATION'S REFORMS ABOUT EIGHT YEARS AGO THEY RECALL HINDUSTAN LEVER OF WHICH UNILEVER HOLDS 51 APPLIED TO THE RESERVE BANK OF INDIA TO ACQUIRE 10 OF STEPAN CHEMICALS LTD'S LOCAL COMPANY TWO YEARS WENT BY WITHOUT EVEN A REPLY RESTRICTIONS HAVE BEEN REMOVED AND NOW IT'S VERY VERY DIFFERENT SAYS MK SHARMA VICE PRESIDENT LEGAL AND SECRETARIAL AT HINDUSTAN LEVER IN NOVEMBER THE GOVERNMENT REMOVED MANY RESTRAINTS ON CORPORATE ACTIVITY ESPECIALLY IN THE AREA OF MERGERS ACQUISITIONS EXPANSION AND NEW INVESTMENT IN JANUARY IT FOLLOWED UP WITH CHANGES THAT HAVE GIVEN FOREIGNCONTROLLED COMPANIES MORE LATITUDE TO INVEST AND EXPAND IN INDIA WITH SO MANY OBSTACLES OUT OF THE WAY THERE WAS NO REASON NOT TO LOOK ACTIVELY IN AREAS OF OUR INTEREST SAYS SM DATTA CHAIRMAN OF HINDUSTAN LEVER UNTIL NOW THE COMPANY'S MAJOR ACQUISITIONS INCLUDING LIPTON INDIA IN 1973 BROOKE BOND INDIA IN 1984 AND POND'S INDIA IN 1986 RELATED MAINLY TO UNILEVER'S PURCHASE OF THE TARGETS' PARENTS OVERSEAS WITH THE OPENING UP OF THE ECONOMY WE FELT THAT WE WOULDN'T BE ABLE TO COMPETE WITH THESE GIANTS AND THAT IT WOULD BE BEST TO JOIN THEM ONE WAY OR ANOTHER TOMCO CHAIRMAN HN SETHNA SAID LAST MONTH THE MERGER RIDS THE TATA GROUP OF A UNIT IN WHICH IT LOST INTEREST LONG AGO IN ADDITION IT GIVES HINDUSTAN LEVER A PROPOSED JOINT VENTURE TATA OIL CLOROX LTD IF TOMCO'S US PARTNER CLOROX INTERNATIONAL CO AGREES TO HINDUSTAN LEVER'S TAKING OVER ITS INDIAN OPERATION CLOROX INTERNATIONAL IS A UNIT OF CLOROX CO OAKLAND CALIF MEANWHILE GODREJ SOAPS A SUBSIDIARY OF GODREJ & BOYCE MANUFACTURING CO HOPES TO BUILD COMPETITIVE STRENGTH THROUGH ITS JOINT VENTURE WITH P&G THE INDIAN COMPANY WHICH HAD SALES OF 516 BILLION RUPEES IN THE YEAR ENDED MARCH 31 1992 ALREADY HAS A PROMINENT SHARE OF THE PREMIUM SOAPS AND DETERGENTS MARKET I SAW P&G SUCCESSFULLY COMPETING WITH UNILEVER EVERYWHERE SAYS ADI GODREJ THE COMPANY'S MANAGING DIRECTOR SO TO ME IT WAS CLEAR THAT IT WAS GOING TO BRING ITS WORLDWIDE STRENGTH INTO THIS ENVIRONMENT MR GODREJ BELIEVES PROCTER & GAMBLE GODREJ LTD WILL HAVE SALES OF FIVE BILLION RUPEES IN ITS FIRST YEAR OF OPERATION HE SEES SEVERAL ADVANTAGES FOR GODREJ SOAPS IN THE ALLIANCE AMONG THEM ACCESS TO P&G'S ADVANCED TECHNOLOGY AND MARKETING SAVVY AS WELL AS THE POTENTIAL FOR INCREASED EXPORTS WE MAY BE GOOD BY INDIAN STANDARDS HE SAYS BUT WE HAVE TO LEARN HOW TO DO IT INTERNATIONALLY FOR P&G THE ALLIANCE WITH GODREJ SOAPS IS A PIGGYBACK RIDE ACCORDING TO ONE ANALYST P&G'S OWN STRENGTHS OVERSEAS IN TECHNOLOGY BRANDS AND MARKETING WILL MESH WELL WITH GODREJ'S ESTABLISHED DISTRIBUTION CHANNELS THE ANALYST ADDS INDEED DESPITE ITS GLOBAL PREEMINENCE IN HOUSEHOLD PRODUCTS P&G APPARENTLY NEEDS GODREJ TO CRACK THE INDIAN SOAP AND DETERGENT MARKET FOR THE SIX MONTHS ENDED DEC 31 PROCTER & GAMBLE INDIA LTD POSTED A LOSS OF 771 MILLION RUPEES ON SALES OF 9334 MILLION RUPEES COMPARED WITH PROFIT OF 121 MILLION RUPEES ON SALES OF 6666 MILLION RUPEES A YEAR EARLIER THE RECENT LOSSES REFLECT THE COSTLY LAUNCH TWO YEARS AGO OF THE LAUNDRY DETERGENT ARIEL THOUGH THE PRODUCT HAS ESTABLISHED A SMALL NICHE FOR ITSELF IN THE PREMIUM SEGMENT OF THE MARKET SOME ANALYSTS SAY ACCUMULATED LOSSES RELATED TO ARIEL TOTAL MORE THAN 160 MILLION RUPEES THE ARIEL LAUNCH WHICH A P&G SPOKESMAN DESCRIBES AS A GOOD LEARNING EXPERIENCE ILLUSTRATES THE COMPANY'S MAIN PROBLEM IN INDIA MAKING AN IMPACT IN A MARKET DOMINATED BY WELLKNOWN BRANDS AND LONGESTABLISHED PLAYERS P&G'S ENTRY INTO THE INDIAN MARKET IN 1988 CAME AS A RESULT OF ITS ACQUISITION OF RICHARDSON VICKS INC A MAKER OF HEALTHCARE PRODUCTS SO MOST OF ITS BUSINESS IN INDIA WAS INHERITED FROM RICHARDSON HINDUSTAN LTD THE ONLY OTHER P&G CORE PRODUCT INTRODUCED IN INDIA IS WHISPER SANITARY NAPKINS WHICH THE COMPANY SAYS HAS BECOME A MARKET LEADER 9304090108 930409 ECONOMY US RETAIL SALES WERE FLAT IN MARCH DUE TO SNOW IN EAST CONSUMER WORRIES BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL THE SNOWSTORMS THAT PARALYZED MUCH OF THE EAST FOR SEVERAL DAYS LAST MONTH DEPRIVED MOST RETAILERS OF EARLY SPRING BUSINESS AND RESULTED IN DISAPPOINTING SALES IN MARCH RETAILERS ALSO CITED CONSUMER UNCERTAINTY ABOUT THE ECONOMY WARMER WEATHER DREW SHOPPERS BACK INTO THE MALLS BY THE LAST WEEK OF THE MONTH BUT IT WAS TOO LATE TO GIVE MARCH RECEIPTS MUCH LIFT SALES FOR RETAIL STORES OPEN AT LEAST A YEAR WERE FLAT GAINING AN AVERAGE OF LESS THAN 1 FROM MARCH 1992 LEVELS ACCORDING TO THE WEIGHTED INDEXES OF SEVERAL INDUSTRY ANALYSTS THE MONTH OF MARCH WAS TERRIBLE SAID JEFFREY EDELMAN A RETAIL ANALYST AT CJ LAWRENCE INC AS MUCH AS I HATE TO USE THE WEATHER AS AN EXCUSE THIS TIME THE WEATHER HAD A DIRECT EFFECT THAT LOST WEEKEND OF BUSINESS HURT EVERYBODY ACROSS THE COUNTRY BY MIDMARCH WALL STREET ANALYSTS BEGAN LOWERING EARNINGS ESTIMATES FOR RETAILERS FOR THE QUARTER ENDING APRIL 30 CITING BOTH POOR WEATHER AND CONSUMER WARINESS UNCERTAINTY ABOUT THE OUTLOOK FOR THE ECONOMY AND THE PROSPECT OF HIGHER TAXES IS TRANSLATING INTO LOWER LEVELS OF CONSUMER CONFIDENCE AND A MODEST REDUCTION IN CONSUMER ACTIVITY FROM WHAT HAD BEEN ANTICIPATED SAID ALLEN QUESTROM CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FEDERATED DEPARTMENT STORES INC IN A STATEMENT HE SAID READYTOWEAR APPAREL IN PARTICULAR HAD BEEN AFFECTED IF THESE TRENDS CONTINUE MR QUESTROM ADDED THEY CAN BE EXPECTED TO HAVE SOME IMPACT ON RETAIL PERFORMANCE FOR THE REMAINDER OF THE YEAR WHILE VIRTUALLY EVERY RETAIL SECTOR EXPERIENCED SLUGGISH BUSINESS IN MARCH THE SPECIALTY APPAREL RETAILERS WHOSE SHELVES WERE BURSTING WITH SHORTSLEEVED SPRING FASHIONS IN THE MIDST OF THE FRIGID MARCH TEMPERATURES WERE THE HARDEST HIT AT SAN FRANCISCOBASED GAP INC SAMESTORE SALES PLUNGED 6 AS GAP RESISTED EARLY MARKDOWNS AT LIMITED INC COLUMBUS OHIO SAMESTORE SALES DROPPED 3 SAMESTORE SALES FELL 9 AT MERRYGOROUND ENTERPRISES INC JOPPA MD AND SLID 2 AT CHARMING SHOPPES INC BENSALEM PA THE NATION'S LARGEST RETAILER WALMART STORES INC IN BENTONVILLE ARK HAD AN UNCHARACTERISTICALLY WEAK 3 SAMESTORE SALES GAIN AT KMART CORP IN TROY MICH THE NATION'S SECONDLARGEST RETAIL CHAIN SAMESTORE SALES FELL 13 IT WAS THE SECOND MONTH IN A ROW THAT SALES WERE BELOW PLAN KMART SAID THE MIDMARCH STORM AFFECTED NEARLY HALF OF KMART'S 4000 STORES CAUSING WELL OVER 400 TO CLOSE ALL OR PART OF THE DAY ON SATURDAY MARCH 13 AND 150 TO 200 STORES TO CLOSE ALL OR PART OF THE NEXT DAY AT DALLASBASED JC PENNEY & CO SAMESTORE SALES ROSE 22 DAYTON HUDSON CORP IN MINNEAPOLIS REPORTED A 39 GAIN IN SAMESTORE SALES BUOYED BY ITS TARGET DISCOUNT STORE DIVISION WHERE SAMESTORE SALES JUMPED 7 NONETHELESS DAYTON HUDSON'S PRESIDENT STEVE WATSON CALLED MARCH SALES DISAPPOINTING ADDING THAT SINCE MIDFEBRUARY THE CUSTOMER SEEMS TO BE HOLDING BACK SOME DEPARTMENT STORES BENEFITTING FROM TIGHTER INVENTORY CONTROLS AND COSTCUTTING FARED BETTER THAN OTHER RETAILING SECTORS AT ST LOUISBASED MAY DEPARTMENT STORES CO SAMESTORE SALES ROSE 5 WHILE AT CINCINNATIBASED FEDERATED SAME STORE SALES INCREASED 25 AMONG THE OTHER RETAILERS REPORTING MARCH RESULTS CHICAGOBASED SEARS ROEBUCK & CO'S MERCHANDISE GROUP SAW SAMESTORE SALES DROP 13 WHILE AT MERCANTILE STORES INC FAIRFIELD OHIO SAMESTORE SALES SLIPPED 53 DESPITE THE LACKLUSTER MARCH BUSINESS ANALYSTS EXPECT THAT WARMER APRIL WEATHER SHOULD BRING OUT SHOPPERS BUYING SEASONAL GOODS AND SPRING WARDROBES IN PARTICULAR RETAILERS NOTE THAT SHOPPERS ARE REACTING POSITIVELY TO THE SPRING FASHIONS THIS YEAR IF APRIL IS STRONG IT WILL SET A POSITIVE TONE FOR THE SECOND QUARTER SAID PAINEWEBBER'S MARGO MCGLADE ANY IMPROVEMENT IN APRIL HOWEVER WILL BE CHARACTERIZED BY HIGHER MARKDOWNS MARCH LEFT RETAILERS WITH TOO MUCH SPRING MERCHANDISE SO APRIL SHOULD BE A PRETTY GOOD CLEARANCE MONTH SAID ROBERT BUCHANAN OF ALEX BROWN & SONS SALOMON BROTHERS' JEFFREY FEINER SAID CONSUMERS TYPICALLY REPLACE THEIR APPAREL EVERY THREE YEARS AND BASED ON THE MARKED IMPROVEMENT IN APPAREL SALES THAT BEGAN DURING THE SECOND HALF OF 1992 WE ARE STILL IN THE FIRST YEAR OF THAT CYCLE 9304090107 930409 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED APRIL 2 ACCOUNTED FOR 96 OR AN AVERAGE 244 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 51 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 395 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 43 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 496 OF PROGRAM TRADING REFLECTED FIRMS TRADING FOR CUSTOMERS WHILE 445 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 59 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF AND FIRST BOSTON DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND MERRILL LYNCH DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS NORMURA SECURITIES SPLIT ITS ACTIVITY BETWEEN ITS OWN ACCOUNTS AND THAT OF ITS CUSTOMERS 9304090105 930409 MOBIL UNIT ASSUMES ARCO STAKE FAIRFAX VA MOBIL EXPLORATION & PRODUCING US INC WHICH ALREADY HAD A HALF INTEREST IN PLATFORM HOLLY AND RELATED OIL AND GAS FACILITIES IN SANTA BARBARA COUNTY SAID IT ASSUMED ATLANTIC RICHFIELD CO'S INTEREST IN THE FIELD AND TOOK OVER OPERATIONS FOR THE PLATFORM ARCO BASED IN LOS ANGELES HAD SAID LAST YEAR THAT IT WOULD RELINQUISH THE FIELD THE MOBIL CORP UNIT SAID IT TOOK OVER OPERATIONS APRIL 1 9304090104 930409 MNC FINANCIAL TO SELL UNIT BALTIMORE MNC FINANCIAL INC SAID IT PLANS TO SELL ITS MORTGAGE BANKING SUBSIDIARY MARYLAND NATIONAL MORTGAGE CORP THE BANK HOLDING COMPANY SAID THE SUBSIDIARY WILL BE SOLD AS A FULLSERVICE MORTGAGE BANKING COMPANY INCLUDING ITS RESIDENTIAL AND MULTIFAMILY LENDING DIVISIONS AND ITS SERVICING DIVISION THE SUBSIDIARY HAS ABOUT 800 EMPLOYEES IN THE MIDATLANTIC REGION COLORADO AND TENNESSEE AND CLOSED MORE THAN 33 BILLION OF SINGLEFAMILY MORTGAGES LAST YEAR 9304090103 930409 TECHNOLOGY ATMEL'S FIRSTQUARTER NET ROSE SAN JOSE CALIF ATMEL CORP SAID FIRSTQUARTER NET INCOME MORE THAN DOUBLED TO 51 MILLION OR 27 CENTS A SHARE DRIVEN BY ORDERS FOR ITS FLASH MEMORY CHIPS THAT COMPARES WITH NET OF 25 MILLION OR 14 CENTS A SHARE IN THE YEARAGO QUARTER THE MAKER OF SEMICONDUCTORS SAID REVENUE JUMPED 52 TO 439 MILLION FROM 288 MILLION A YEAR EARLIER FLASH MEMORY IS A NEW GENERATION OF CHIPS THAT SAVE THEIR DATA EVEN DURING A POWER FAILURE 9304090102 930409 YOUR MONEY MATTERS WEEKEND REPORT WHAT YOU NEED TO KNOW ABOUT MORTGAGE BROKERS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL A SURGE IN HOME REFINANCING IS CAUSING A BOOMING BUSINESS FOR MORTGAGE BROKERS AND A FLOOD OF COMPLAINTS ACROSS THE US ABOUT THE WAY SOME OF THEM DO THEIR BUSINESS MORTGAGE BROKERS ARE EXTRAORDINARILY POPULAR THESE DAYS BECAUSE THEY CAN TAKE A LOT OF THE GRIEF OUT OF REFINANCING WHILE THEY DON'T MAKE THE LOANS THEMSELVES THEY HELP HOMEOWNERS FILL OUT LOAN APPLICATIONS AND THEN THE BROKERS SHOP AMONG SEVERAL DIFFERENT LENDERS TO FIND THE BEST RATE AND TERMS THAT CAN SAVE DAYS AND A LOT OF HEADACHES BUT THE REFINANCING CRAZE FUELED BY LOWER INTEREST RATES HAS CAUSED A FLOOD OF NEW AND OFTEN UNQUALIFIED MORTGAGE BROKERS TO SET UP SHOP IN SOME CASES OUTRIGHT FRAUD HAS OCCURRED WITH HOMEOWNERS LOSING THEIR ADVANCE PAYMENTS AND THE MORTGAGE LOAN THEY WERE PROMISED IN OTHER INSTANCES MORTGAGE BROKERS HAVE TAKEN ON TOO MUCH BUSINESS AND HAVE BEEN UNABLE TO PROCESS LOANS IN TIME TO TAKE ADVANTAGE OF THE LOWEST INTEREST RATES STATES ARE SCRAMBLING TO COPE WITH THE GROWING PROBLEM BY ENACTING NEW OR ADDITIONAL LEGISLATION TO LICENSE AND REGULATE MORTGAGE BROKERS WITH LICENSING THEY CAN FORCE BROKERS TO LIVE UP TO STATE STANDARDS AND POST A BOND SO HOMEOWNERS CAN GET BACK THEIR MONEY IF THE BROKERS GO OUT OF BUSINESS EARLIER THIS YEAR GEORGIA AND OHIO ENACTED LEGISLATION TO LICENSE MORTGAGE BROKERS OHIO'S NEW LAW GOES INTO EFFECT NEXT THURSDAY GEORGIA'S NEW LAW IS EXPECTED TO TAKE EFFECT JUNE 1 WASHINGTON STATE IS IN THE FINAL STAGES OF ENACTING WHAT IT HOPES IS A MODEL LAW TO LICENSE MORTGAGE BROKERS SOME 35 STATES HAVE SOME KIND OF REGULATION OF MORTGAGE BROKERS THE STATUTES VARY WIDELY IN THEIR EFFECTIVENESS HOWEVER EVEN STATES THAT HAVE EXTENSIVE LICENSING LAWS STILL GET A LARGE NUMBER OF COMPLAINTS IN NEW JERSEY LAST YEAR 30 OF THE 2469 COMPLAINTS TO THE STATE'S DEPARTMENT OF BANKING CONCERNED MORTGAGE APPLICATIONS WITH MORTGAGE BROKERS AND MORTGAGE BANKERS SAYS JEFF CONNOR BANKING COMMISSIONER THE COMPLAINTS ARE CONSISTENT AND HIGH HE SAYS CLEARLY THE INDUSTRY HAS A BIT OF WORK AHEAD TO INSTILL CONSUMER CONFIDENCE JUST ASK EDWARD FRANKELE WHO INVESTIGATES CONSUMER COMPLAINTS FOR BOEING CO MR FRANKELE WHO LIVES IN RENTON WASH SAYS HE LOST HIS ADVANCE PAYMENT OF 500 AFTER HE SIGNED UP LAST YEAR FOR A MORTGAGE REFINANCING HE SAYS HE NEVER GOT THE LOAN HE WAS PROMISED AND THE MORTGAGE BROKER WENT OUT OF BUSINESS WE'VE HAD A LOT OF PEOPLE JUMP INTO THE FIELD WHO DON'T KNOW WHAT THEY'RE DOING SAYS DAVID HORN ASSISTANT ATTORNEY GENERAL FOR THE STATE OF WASHINGTON HIS OFFICE ALONE RECEIVED 300 WRITTEN COMPLAINTS ABOUT MORTGAGE BROKERS LAST YEAR SINCE WASHINGTON HAD NO LICENSING REQUIREMENTS ALL SOMEONE HAD TO DO TO BECOME A MORTGAGE BROKER WAS TO GET A GENERAL BUSINESS LICENSE FOR 20 THE GUY WHO CLIPS DOG HAIR AND THE MORTGAGE BROKER GOT THE SAME LICENSE SAYS KENNETH LINDBERG PRESIDENT OF THE WASHINGTON ASSOCIATION OF MORTGAGE BROKERS A TRADE GROUP NO FINANCIAL BACKGROUND NEEDED NO NET WORTH REQUIREMENTS PEOPLE JUMPED INTO THE GAME TO MAKE A QUICK BUCK SOME OF THEM ILLEGALLY MANY OF THE COMPLAINERS WERE PROFESSIONALS TRYING TO AVOID THE HASSLE OF CALLING ALL THE LENDERS THEMSELVES CARMEN CHAN PRINCIPAL OF SEATTLE'S DEARBORN PARK ELEMENTARY SCHOOL SAYS SHE GAVE ONE MORTGAGE BROKER 1500 IN FEES AND IT TOOK HER SIX MONTHS TO GET HER MONEY BACK AFTER HER LOAN DIDN'T GO THROUGH EVEN APPRAISERS WERE BURNED BY THE STARTUP MORTGAGE BROKERS WHO TOOK CLIENTS' MONEY FOR HOME APPRAISALS ORDERED THE APPRAISAL AND THEN DIDN'T PAY THE APPRAISER PAUL OLSON AN APPRAISER FROM PORT ORCHARD WASH SAYS HE LOST SO MUCH MONEY FROM BROKERS WHO DIDN'T PAY UP THAT HE NOW WON'T EVEN START AN APPRAISAL WITHOUT GETTING A RETAINER UP FRONT TO BE SURE THE VAST MAJORITY OF MORTGAGE BROKERS ARE LEGITIMATE AND PERFORM A VALUABLE SERVICE WITHOUT THEM THERE'S NO WAY THE MORTGAGE LENDING INDUSTRY DECIMATED BY THE FAILURE AND CLOSING OF HUNDREDS OF SAVINGS AND LOANS COULD HANDLE ALL THE VOLUME IN THE CURRENT REFINANCING RUSH ACCORDING TO INDUSTRY ESTIMATES SOME 15000 MORTGAGE BROKERAGE FIRMS PROCESSED 400 BILLION LAST YEAR IN LOANS WITH COMMERCIAL BANKS SAVINGS AND LOANS AND MORTGAGE BANKERS COUNTRYWIDE CREDIT INDUSTRIES INC OF PASADENA CALIF THE NATION'S LARGEST MORTGAGE LENDER SAYS MORTGAGE BROKERS GENERATED 16 BILLION OF THE 35 BILLION IN LOANS IT PROCESSED IN MARCH STILL WITH THE RISING CHORUS OF COMPLAINTS IT PAYS TO BE VIGILANT PEOPLE EAGER TO TAKE ADVANTAGE OF TODAY'S LOW INTEREST RATES TO REFINANCE OR BUY A HOME SHOULD EXERCISE CARE WHEN SELECTING A MORTGAGE BROKER GET A REFERENCE FROM A SATISFIED COWORKER OR FRIEND REAL ESTATE AGENCY OR BANK COUNTRYWIDE CREDIT FOR EXAMPLE HAS 5000 APPROVED MORTGAGE BROKERS WITH WHICH IT WORKS IF YOUR STATE LICENSES BROKERS CHOOSE A LICENSED BROKER WHO IS BONDED OR HAS MET THE STATE'S NET WORTH REQUIREMENT CHECK WITH THE LICENSING AUTHORITY TO SEE IF ANY COMPLAINTS HAVE BEEN MADE AGAINST THE BROKER PICK A BROKER WHO HAS BEEN IN BUSINESS FOR AT LEAST TWO YEARS ASK HOW MANY MORTGAGE LENDERS HE OR SHE REPRESENTS GOOD MORTGAGE BROKERS REPRESENT AT LEAST 10 LENDERS FROM DIFFERENT PARTS OF THE US SO THEY CAN SHOP NATIONWIDE TO FIND THE BEST RATE IN ADDITION ASK WHAT PERCENTAGE OF LOANS THEY SUBMIT TO LENDERS ARE ACTUALLY FUNDED FOR TYPICAL MORTGAGE TRANSACTIONS 70 OR MORE OF APPLICATIONS SUBMITTED SHOULD LEAD TO CLOSINGS FOR PEOPLE WITH CREDIT PROBLEMS THE CLOSING RATIO COULD BE SIGNIFICANTLY LOWER WHEN YOU MAKE YOUR LOAN APPLICATION GET A GOOD FAITH ESTIMATE OF ALL CLOSING COSTS ASSOCIATED WITH THE LOAN BEFORE YOU DEPOSIT ANY MONEY WITH THE BROKER IT'S NOW FEDERAL LAW THAT YOU RECEIVE SUCH AN ESTIMATE WITHIN THREE DAYS OF MAKING THE APPLICATION TYPICALLY AFTER COMPLETING A LOAN APPLICATION A PROSPECTIVE BORROWER PUTS UP 500 TO 750 IN ADVANCE MONEY TO PAY FOR THE APPRAISAL CREDIT REPORT TITLE REPORT TERMITE AND STRUCTURAL INSPECTION AND OTHER SERVICES BY THIRD PARTIES BY STATE LAW THE MONEY IS SUPPOSED TO BE PLACED IN A TRUST OR ESCROW ACCOUNT NOT COMMINGLED WITH THE REST OF THE MORTGAGE BROKER'S FUNDS WATCH OUT FOR OTHER JUNK FEES SAYS PAUL HAVEMANN VICE PRESIDENT AT HSH ASSOCIATES A BUTLER NJ PUBLISHER OF MORTGAGE INFORMATION MAKE THEM EXPLAIN IT OR DON'T PAY IT HE SAYS SOME BROKERS CHARGE AN APPLICATION FEE BUT MANY STATES LIMIT THIS TO 300 OR LESS PROS SAY YOU SHOULDN'T PAY ANY MORE TYPICALLY LENDERS PAY THE MORTGAGE BROKERS 1 TO 15 OF THE TOTAL LOAN FOR BRINGING IN THE BUSINESS AND HANDLING MOST OF THE PAPERWORK BORROWERS CAN ALSO PURCHASE A SPECIAL LOCKEDIN RATE SOME LENDERS WILL GUARANTEE TO MAKE A LOAN AT A PARTICULAR RATE IF THE DEAL IS CLOSED WITHIN A SET NUMBER OF DAYS WITHOUT CHARGING A FEE FOR THE PRIVILEGE BY PAYING A FEE YOU CAN SOMETIMES GET THAT LOCKIN PERIOD EXTENDED FOR AN ADDITIONAL NUMBER OF DAYS PRACTICES VARY WIDELY AMONG LENDERS BUT FROM BEGINNING TO END THE MORTGAGE LOAN APPLICATION PROCESS GENERALLY TAKES FROM 45 TO 60 DAYS SAYS JERRY BAKER MANAGING DIRECTOR OF COUNTRYWIDE FUNDING CORP A UNIT OF COUNTRYWIDE CREDIT IF YOU SIGN UP FOR A LOCK MAKE SURE YOU KNOW WHO IS GUARANTEEING THAT RATE SAYS MICHAEL HOOGENDYK EXECUTIVE VICE PRESIDENT OF THE NATIONAL ASSOCIATION OF MORTGAGE BROKERS A PHOENIX TRADE GROUP YOU WANT THE MORTGAGE LENDER TO GUARANTEE THE LOCKEDIN RATE NOT YOUR MORTGAGE BROKER WHO DOESN'T HAVE THE CAPABILITY TO SUPPORT IT AND BY ALL MEANS STAY ON TOP OF THE PROCESS IF YOU DON'T YOU MIGHT END UP MISSING THE DEADLINE FOR A LOWER INTEREST RATE BECAUSE YOUR TERMITE REPORT WASN'T COMPLETE CHOOSE A LICENSED MORTGAGE BROKER WITH A GOOD REPUTATION PICK A BROKER WITH A WIDE VARIETY OF LENDERS GET A WRITTEN COST ESTIMATE UP FRONT DON'T PAY APPLICATION FEES OF MORE THAN 300 WATCH OUT FOR JUNK FEES MAKE SURE WHO GUARANTEES YOUR LOCKEDIN INTEREST RATE STAY ON TOP OF THE PROCESS 9304090101 930409 WHO'S NEWS SHEARSON STRATEGIST LEAVES FIRM NEW YORK SHEARSON LEHMAN BROTHERS' CHIEF STOCK STRATEGIST MICHAEL SHERMAN IS LEAVING THE FIRM TO WORK WITH MONEY MANAGER LEON COOPERMAN ELAINE GARZARELLI SHEARSON'S QUANTITATIVE STOCK STRATEGIST WHO IS KNOWN FOR CORRECTLY PREDICTING THE 1987 STOCK MARKET CRASH WILL TAKE OVER MR SHERMAN'S RESPONSIBILITIES SHEARSON IS A UNIT OF AMERICAN EXPRESS CO 9304090100 930409 INTERNATIONAL GERMAN COURT DEFUSES FLAP OVER AWACS BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN GERMANY'S CONSTITUTIONAL COURT CLEARED THE WAY FOR GERMAN AIR FORCE PERSONNEL TO PARTICIPATE IN AWACS RECONNAISSANCE FLIGHTS AS PART OF THE ENFORCEMENT OF A NOFLY ZONE OVER BOSNIA THE FLIGHTS WHICH THE NORTH ATLANTIC TREATY ORGANIZATION IS PREPARED TO BEGIN MONDAY IF THE UNITED NATIONS APPROVES WOULD REPRESENT THE FIRST TIME THAT GERMAN SOLDIERS HAVE ASSUMED A COMBAT ROLE SINCE WORLD WAR II THE COURT TURNED DOWN A PLEA FOR A TEMPORARY INJUNCTION BY THE FREE DEMOCRATIC PARTY A MEMBER OF CHANCELLOR HELMUT KOHL'S RULING CENTERRIGHT COALITION WHICH HAD TAKEN THE UNPRECEDENTED MOVE OF SUING A GOVERNMENT IT WAS PART OF THE FREE DEMOCRATS INSIST THAT DEPLOYING GERMAN FORCES ON NONHUMANITARIAN MISSIONS OUTSIDE OF NATO TERRITORY IS UNCONSTITUTIONAL BUT BY GROUNDING ITS DECISION ON THE POTENTIAL DAMAGE THAT NONPARTICIPATION IN THE AWACS FLIGHTS WOULD HAVE ON GERMANY'S RELATIONS WITH ALLIES AND NATO THE COURT PROVIDED THE FREE DEMOCRATS WITH A JUSTIFICATION FOR REMAINING IN THE 11YEAROLD COALITION PARTY LEADERS HAD WARNED IN RECENT DAYS THAT IF THE COURT TURNED DOWN THE APPEAL FOR AN INJUNCTION AS INADMISSIBLE BECAUSE IT WAS A POLITICAL AND NOT A CONSTITUTIONAL ISSUE THE PARTY MIGHT WALK OUT OF THE GOVERNMENT CHANCELLOR KOHL'S OFFICE HAD INSISTED THAT IF THE COURT THREW OUT THE CASE THE AWACS CREWS WOULD NONETHELESS PARTICIPATE IN ENFORCING THE NOFLY ZONE WHILE THE COALITION CRISIS WAS DEFUSED THE COURT'S RULING LEFT OPEN THE QUESTION OF WHETHER GERMAN PARTICIPATION WOULD ULTIMATELY BE RULED UNCONSTITUTIONAL THE COURT WON'T MAKE THAT DECISION FOR MONTHS IN THE MEANTIME SAID HERMANNOTTO SOLMS PARLIAMENTARY LEADER OF THE FREE DEMOCRATS THIS IS A RESULT THAT THE COALITION CAN LIVE WELL WITH 9304090099 930409 TECHNOLOGY & HEALTH CONTRACEPTIVE LABELS TO CITE INABILITY TO STOP SEXUALLY TRANSMITTED DISEASES BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION FEARFUL THAT MANY YOUNG PEOPLE CONFUSE BIRTH CONTROL AND SAFE SEX WILL REQUIRE LABELS ON BIRTHCONTROL PILLS AND CERTAIN OTHER CONTRACEPTIVES STATING THAT THE PRODUCTS DON'T PROTECT AGAINST SUCH SEXUALLY TRANSMITTED DISEASES AS AIDS THE LABELS WHICH WILL BEGIN APPEARING IN ABOUT SIX MONTHS REFLECT INCREASING CONCERN BY FDA COMMISSIONER DAVID KESSLER AND OTHERS THAT MANY YOUNG PEOPLE MISTAKENLY BELIEVE THAT CONTRACEPTIVES SUCH AS THE PILL GUARD AGAINST AIDS AS WELL AS PREGNANCY THE NEW ACTION WAS SPURRED IN PART BY A RECENT PHONE CALL TO FDA OFFICIALS BY A COUNSELOR IN SAN FRANCISCO WHO TOLD OF A GIRL WHO DIED OF AIDS NEVER REALIZING THE BIRTHCONTROL PILLS SHE HAD BEEN TAKING WEREN'T PROTECTING HER AGAINST THE DISEASE THAT STORY MADE SUCH AN IMPACT ON US RUTH MERKATZ SPECIAL ASSISTANT TO THE COMMISSIONER FOR WOMEN'S HEALTH SAYS IN AN INTERVIEW WE RECOGNIZED WE HAD TO DO SOMETHING DR KESSLER SAYS WE HAVE TO RECOGNIZE THAT AS WE EDUCATE ABOUT PREGNANCY TEENAGERS ALSO NEED TO KNOW THAT AVOIDING PREGNANCY ISN'T AVOIDING SEXUALLY TRANSMITTING DISEASES IN ADDITION TO THE HIV INFECTION THAT CAN CAUSE AIDS SUCH DISEASES AS CHLAMYDIA GENITAL HERPES GENITAL WARTS GONORRHEA HEPATITIS B SYPHILIS AND OTHERS CAN BE SPREAD THROUGH SEXUAL CONTACT THE FDA'S ACTION FOLLOWS THE RECENT RELEASE OF A STUDY BY A NONPROFIT GROUP THE ALAN GUTTMACHER INSTITUTE THAT CRITICIZED FEDERAL EFFORTS TO ATTACK SEXUALLY TRANSMITTED DISEASES AMONG OTHER COMPLAINTS THE GROUP SAID THAT WHILE THE GOVERNMENT DOES WORK AT CONTROLLING THE SPREAD OF THE DISEASES IT DOESN'T FOCUS SUFFICIENTLY ON HELPING INDIVIDUALS PREVENT INFECTIONS IN THE FIRST PLACE ALL CONTRACEPTIVES WILL BE REQUIRED TO HAVE A STATEMENT ABOUT SEXUALLY TRANSMITTED DISEASES ON THE PACKAGE SIMILAR INFORMATION WILL BE CONTAINED IN LEAFLETS PHYSICIANS DISTRIBUTE WITH THE PRODUCTS THE REQUIRED INFORMATION WILL VARY DEPENDING ON THE PRODUCT ORAL CONTRACEPTIVES INJECTABLE DEVICES SUCH AS UPJOHN CO'S DEPO PROVERA IMPLANTABLE CONTRACEPTIVES SUCH AS AMERICAN HOME PRODUCT CORP'S NORPLANT NATURAL SKIN CONDOMS AND INTRAUTERINE DEVICES WILL HAVE TO SAY THAT THE PRODUCTS ARE DESIGNED TO PREVENT PREGNANCY BUT DON'T PREVENT HIV INFECTION AND OTHER DISEASES THE LABELING REQUIREMENTS MAY EASE SOME OPPOSITION TO EFFORTS BY SOME BIRTHCONTROL ADVOCACY GROUPS TO MAKE ORAL CONTRACEPTIVES AVAILABLE OVER THE COUNTER AMONG OTHER OBJECTIONS OPPONENTS OF MAKING THE PILLS NONPRESCRIPTION HAVE ARGUED THAT REQUIRING WOMEN TO VISIT PHYSICIANS ENSURES THAT THEY GET NEEDED COUNSELING INCLUDING INFORMATION ON HOW TO AVOID GETTING AIDS SUCH A CHANGE WOULD REQUIRE FDA APPROVAL HOWEVER AND DR KESSLER EMPHASIZED THAT THE LABELING REQUIREMENTS HAVE NOTHING TO DO WITH THE ISSUE OF WHETHER TO ALLOW THE PILLS TO BE SOLD OVER THE COUNTER LABELING ON NATURAL SKIN CONDOMS ALSO WILL STATE THAT CONSUMERS SHOULD USE LATEX CONDOMS RATHER THAN NATURAL SKIN CONDOMS TO REDUCE THE RISK OF SEXUALLY TRANSMITTED DISEASES LATEX CONDOM LABELING WILL BE ABLE TO SAY THAT THE PRODUCTS IF USED PROPERLY REDUCE THE RISK OF HIV INFECTION AND OTHER DISEASES LATEX CONDOMS ARE THE ONLY PRODUCT ALLOWED TO MAKE SUCH A CLAIM THE FDA STILL IS CONSIDERING WHAT ACTION TO TAKE REGARDING THE LABELING OF SPERMICIDES CERVICAL CAPS DIAPHRAGMS AND AMERICAN HOME PRODUCTS' TODAY BRAND CONTRACEPTIVE SPONGE 9304090098 930409 LEISURE & ARTS ON SPORTS GURU TO GOLF'S BIG NAMES BY FREDERICK C KLEIN AUGUSTA GA IF GOLF WERE LIKE HORSE RACING AND CONTESTANTS UNDER THE GUIDANCE OF THE SAME TRAINER WERE CLASSED AS AN ENTRY FOR BETTING PURPOSES THE DAVID LEADBETTER STABLE WOULD GO OFF AT CLOSE TO EVEN MONEY EVERY TIME WEARING SADDLECLOTH NO 1 WOULD BE NICK FALDO GENERALLY REGARDED AS THE BEST BALL SWATTER EXTANT 1A MIGHT BE NICK PRICE WINNER OF THE RECENT TOURNAMENT PLAYERS CHAMPIONSHIP AND THE GAME'S HOTTEST TOURIST CANDIDATES FOR THE DESIGNATIONS 1B THROUGH 1D COULD BE LARRY MIZE THE 1987 MASTERS CHAMP IAN BAKERFINCH THE 1991 BRITISH OPEN WINNER AND DAVID FROST WHO'S AMONG THE BEST PLAYERS NOT TO HAVE WON ONE OF GOLF'S SHOWCASE TOURNAMENTS TO ACCOMMODATE ALL THE LEADBETTER PUPILS IN A MAJOR LIKE THE MASTERS WHICH TEED OFF HERE YESTERDAY YOU'D HAVE TO USE THE ALPHABET DOWN TO S OR T THAT IS MAKING FOR A BUSY WEEK FOR THE LEAN 40YEAROLD LEADBETTER WHO WAS BORN IN ENGLAND GREW UP IN RHODESIA NOW ZIMBABWE AND LIVES MOSTLY IN FLORIDA NOW HE'S ON THE PRACTICE TEE AT AUGUSTA NATIONAL GOLF CLUB ADJUSTING THE SWINGS OF SOME OF THE RICH YOUNG ATHLETES WHO'VE HELPED MAKE HIM RICH NOW HE'S ON THE COURSE WATCHING HIS CHARGES PUT THE LESSONS TO WORK IF THESE DAYS HAD 24 HOURS OF DAYLIGHT I COULD USE THEM ALL HE REMARKS BUT HOWEVER HECTIC LEADBETTER'S PRESENT LOT IS A GOOD BIT IMPROVED FROM WHAT IT WAS 15 OR SO YEARS AGO WHEN HE WAS TRYING TO SCRAPE OUT A LIVING PLAYING ON THE EUROPEAN AND SOUTH AFRICAN TOURS THE OLD SAW THAT MEDIOCRE PLAYERS MAKE THE BEST TEACHERS CERTAINLY APPLIES TO HIM I WAS TOO MUCH OF A PERFECTIONIST ALWAYS TINKERING WITH MY SWING AND WONDERING WHAT WOULD HAPPEN IF I MADE THIS OR THAT CHANGE HE SAYS THAT'S A GOOD QUALITY FOR A TEACHER BUT FATAL FOR A PLAYER LEADBETTER'S INITIAL PUPILS WERE PRICE AND DENIS WATSON MEN WHOSE RHODESIAN ROOTS MATCH HIS OWN FAME CAME WHEN HE HELPED ENGINEER THE SWING THAT TURNED THE ENGLISHMAN FALDO FROM A PRETTY GOOD EUROPEAN PLAYER TO A THREETIME BRITISH OPEN AND TWOTIME MASTERS TITLIST AND COUNTING FALDO'S BREAKTHROUGH WIN AT THE 1987 BRITISH OPEN LED OTHER PROS INCLUDING SOME TOPFLIGHTERS TO ORDER WHAT NICK WAS HAVING AND BEING GURU TO THE STARS IN TURN TURNED ON THE PUBLIC THE DAVID LEADBETTER GOLF ACADEMY AT LAKE NONA GOLF CLUB IN ORLANDO ACCOMMODATES BETWEEN 1500 AND 2000 STUDENTS A YEAR AT INDIVIDUAL RATES OF 125 AN HOUR THAT FEE DOESN'T BUY TIME WITH LEADBETTER BUT WITH AN ASSOCIATE WHO'S BEEN TRAINED IN HIS METHODS THE MASTER HIMSELF IS AVAILABLE THESE DAYS ONLY AT TWODAY RETREATS FOR GROUPS OF SIX EACH OF WHOM PAYS 3500 FOR THEIR MONEY PROS AND HACKERS ALIKE GET A MIXTURE OF DOCTRINE AND PRAGMATISM THE DOCTRINAL PART IS EMBODIED IN SOMETHING LEADBETTER CALLS THE ATHLETIC SWING IT PORTRAYS THE GOLF STROKE AS A TWOTURN EXERCISE ONE TURN BRINGING THE GOLF CLUB BACK AND THE OTHER BRINGING IT THROUGH THE BALL HE BELIEVES THE BODY'S LARGE PARTS THE LEGS HIPS AND SHOULDERSSHOULD DRIVE THE STROKE WITH THE USUAL FOCUSES OF ATTENTION THE ARMS AND HANDSMERELY GOING ALONG FOR THE RIDE AS HE'S FOND OF PUTTING IT THE LARGEMUSCLE DOG SHOULD WAG THE SMALLMUSCLE TAIL THAT SAID THOUGH LEADBETTER IS QUICK TO NOTE THAT HE KNOWS FULL WELL EVERYONE'S DIFFERENT AND THAT A GOOD GOLF SWING IS EASIER DESCRIBED THAN PERFORMED EFFECTIVE TEACHING HE AVERS IS 25 INFORMATION AND 75 COMMUNICATION HE ADDS ON ANY LEVEL THE TRICK IS GETTING INTO THE STUDENT'S MIND AND FINDING OUT HOW HE LEARNS ONCE YOU DO THAT THERE'S NO LIMIT TO WHAT YOU CAN IMPART HE SAYS SOME PLAYERS LIKE SOMETIME PUPILS TOM WATSON AND SEVE BALLESTEROS LEARN MAINLY THROUGH FEEL AND HE HAS A WHEELBARROW FULL OF DEVICES THAT HE'S FASHIONED OR COLLECTED TO STEER THEM ALONG PROPER PATHS THESE INCLUDE BEACH BALLS TO HOLD BETWEEN THE KNEES TO IMPROVE POSTURE AND BALANCE AND HARNESSES TO GUIDE OR RESTRICT ARM AND SHOULDER MOVEMENTS OTHER PLAYERS RESPOND BETTER TO AN APPROACH THAT EMPHASIZES DEMONSTRATION AND EXPLANATION THAT'S OFTEN A LONGER ROAD TO IMPROVEMENT BUT ONE THAT CAN BEAR CHOICER FRUIT THE ULTIMATE AIM OF ANY TEACHING IS TO MAKE THE STUDENT HIS OWN TEACHER AND I THINK THAT CAN BE BEST ACCOMPLISHED INTELLECTUALLY LEADBETTER SAYS THE STUDENT WHO SO FAR HAS MOST IDEALLY MATCHED LEADBETTER'S OWN ANALYTICAL TEMPERAMENT AND PROPENSITIES IS FALDO THE TWO FIRST MET AND SWAPPED OBSERVATIONS IN SOUTH AFRICA IN 1984 A YEAR LATER WHEN THE GOLFER DECIDED TO EMBARK UPON A RADICAL CHANGE OF DIRECTION HE LOOKED UP LEADBETTER TO GUIDE HIM MOST PROS LIKE MOST OTHER GOLFERS LOOK FOR A QUICK FIX WHEN THEIR GAMES GO WRONG NOTES LEADBETTER NICK WAS WILLING TO TAKE THE TIME TO RESTRUCTURE HIS SWING TOTALLY IN ORDER TO PROGRESS HE ASKED ME TO THROW THE BOOK AT HIM AND I DID THE PROCESS TOOK TWO YEARS AND WAS NOT WITHOUT PITFALLS LEADBETTER RECALLS THAT SOME MEMBERS OF THE BRITISH PRESS PROTECTIVE OF THEIR NATION'S FEW SPORTS IDOLS REGARDED THE OVERHAUL EFFORT AS CLOSE TO SACRILEGIOUS BUT EVENTUALLY FALDO'S SWING BECAME MORE COMPACT AND REPEATABLE AND HIS SHOTS LOWER AND STRONGER WHEN THE GOLFER WON THE '87 BRITISH OPEN WITH A ROCKSOLID 18PAR FINAL ROUND AT BLUSTERY MUIRFIELD THE REPUTATIONS OF BOTH MEN SOARED THAT LEADBETTER'S TOURINGPRO CLIENTELE CURRENTLY NUMBERS ABOUT TWO DOZEN IN THE US AND EUROPE STEMS FROM THE NATURE OF THE GAME AND THE PEOPLE WHO PLAY IT GOLFERS HIT THE BALL WITH RATHER THAN AT ONE ANOTHER SO THE TYPE OF CONFLICTS THAT EXIST IN SAY TENNIS DON'T APPLY AND IT'S OK FOR A COACH TO COUNSEL COMPETITORS INDEED WHILE THERE'S SAID TO BE LITTLE LOVE LOST BETWEEN FALDO AND SANDY LYLE THE FELLOW BRITISHER WHO WON HERE IN 1988 IT WAS FALDO'S RECOMMENDATION THAT CAUSED LYLE TO ENLIST WITH LEADBETTER FEES ARE A TOUCHY POINT AND PLAYERS' TIME DEMANDS VARY WIDELY SO LEADBETTER WON'T DISCUSS HIS INCOME FROM HIS BIGNAME STUDENTS OTHER THAN TO SAY SOME PAY BY THE HOUR SOME BY THE YEAR AND SOME WITH A PERCENTAGE OF THEIR WINNINGS BUT HE WILL ACKNOWLEDGE THAT WITH THE PROS THERE'S A QUID PRO QUO THOSE GUYS ARE MY PR AND THEIR SUCCESS BENEFITS ME IN A NUMBER OF WAYS AND IT'S NICE TO HAVE A LOT OF HORSES IN ANY RACE 9304090097 930409 PEPPERAND SALT VPS TO FIREFIGHTERS OF COURSE FOR LIGHTVERSE WRIGHTERS WILL WISH ME MERRY CHRISTMAS AS WELL MARRIAGE COUNSELORS FAMILY RETRAINERS 9304090096 930409 MONEY FUND ASSETS ROSE IN LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE BY 1865 BILLION TO 58914 BILLION FROM 57049 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 628 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 385 BILLION TO 39412 BILLION THE TRADE GROUP SAID ASSETS OF 393 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 233 BILLION TO 31046 BILLION ASSETS OF 235 RETAIL TAXEXEMPT FUNDS ROSE BY 152 BILLION TO 8366 BILLION ASSETS OF THE 261 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 1480 BILLION TO 19502 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 212 TAXABLE MONEY MARKET FUNDS ROSE BY 1442 BILLION TO 17411 BILLION ASSETS OF 49 TAXEXEMPT FUNDS ROSE BY 3855 MILLION TO 2091 BILLION 9304090095 930409 LEISURE & ARTS BOOKSHELF BRITS IN PURSUIT OF HAPPINESS BY LEE LESCAZE LATE IN ROSE TREMAIN'S SACRED COUNTRY ATHENEUM 323 PAGES 21 A MAN IN FLIGHT FROM HIS FAMILYORDAINED LIFE IN A BUTCHER SHOP HAPPENS ON THE DECLARATION OF INDEPENDENCE I WISH I'D KNOWN YEARS AGO THAT THE PURSUIT OF HAPPINESS WAS A RIGHT HE REMARKS IN BRITAIN'S RURAL SUFFOLK WHERE MS TREMAIN'S CHARACTERS START OUT THE PURSUIT IS AGAINST THE RULES THE COUNTRYSIDE HAS BEEN SWEPT BY AN EMOTIONAL ICE STORM LINES OF COMMUNICATION BETWEEN FRIENDS SIBLINGS PARENTS AND CHILDREN ARE DOWN TOO MANY HAVE BEEN TRAPPED FOR GENERATIONS IN CONFINED STIFLING LIVES NO ONE CAN LIVE THEIR LIVES WITHOUT LIGHT WITHOUT THE MIRACULOUS ONE YOUNG MAN SAYS OF HIS EFFORT TO BREAK AWAY YOU'D BE SURPRISED REPLIES AN OLD MAN WHO REGRETS HAVING SPENT TOO MANY OF HIS YEARS CLOSE TO THE SAME SPOT SACRED COUNTRY AN EXTRAORDINARY NOVEL COULD ONLY HAVE BEEN WRITTEN IN A SOCIETY LIKE BRITAIN'S IN WHICH OPPORTUNITY EVEN THE CHANCE TO TAKE A LONG TRIP ISN'T CONTEMPLATED BY SIZABLE PORTIONS OF THE POPULATION PEOPLE ARE BORN WORK AND DIE WITHOUT HAVING BEEN TO THE NEIGHBORING COUNTY LET ALONE COUNTRY IN OUR MORE MOBILE SOCIETY ONLY THE RURAL SOUTH MAY HAVE IN THIS CENTURY COME CLOSE AND SACRED COUNTRY BEARS SOME RESEMBLANCE TO THE BEST SOUTHERN FICTION ITS CHARACTERS ARE MEMORABLE AND ABUNDANT FAMILY TIES HURT BUT AREN'T EASILY BROKEN LIFE IS BLEAK DRUNKENNESS MADNESS AND SUICIDE COLOR THE LANDSCAPE BUT HAPPINESS IS WORTH PURSUING SACRED COUNTRY ARGUES EVEN IF IT MAY BE CATCHABLE ONLY IN LIMITED QUANTITIES AND AFTER LONG CHASES ESCAPE FROM SUFFOLK IS POSSIBLE AT LEAST FOR THE YOUNG INDEED THE THREE MAJOR YOUNG CHARACTERS ALL ESTABLISH THEMSELVES ELSEWHERE ONE OF MS TREMAIN'S MANY ACHIEVEMENTS IN THIS NOVEL IS HER HANDLING OF TIME SHE SPANS ALMOST 30 YEARS IN THE LIVES OF HER CHARACTERS IN A BOOK OF ORDINARY LENGTH HER WRITING IS SPARE POINTED AND OFTEN EXTREMELY MOVING THE QUALITY OF TIME WEAVES ITSELF THROUGH THE ALMOST MAGICAL OPENING CHAPTER IT IS FEB 15 1952 AND A TWOMINUTE SILENCE HAS BEEN CALLED FOR 2 PM IN HONOR OF THE DEAD KING GEORGE VI THE WARD FAMILY FATHER MOTHER DAUGHTER SON STANDS UNDER A LIGHT WET SNOW IN ONE OF ITS POOR FIELDS THE FATHER THINKS THEY SHOULD OBSERVE THE SILENCE OUTDOORS SO THAT THEIR PRAYERS GO MORE DIRECTLY TO HEAVEN ELSEWHERE IN BRITAIN WE ARE TOLD MANY PEOPLE WEPT NOT MERELY FOR THE KING BUT FOR THEMSELVES AND FOR ENGLAND FOR THE LONG GHASTLY PASSING OF TIME FOR THE WARD FAMILY THOUGHTS ARE LESS COSMIC MORE CONFUSED FOR SIXYEAROLD MARY WARD THE SILENCE IS ALSO THE MOMENT SHE ARTICULATES TO HERSELF THE ROOT OF HER UNHAPPINESS SHE HAS BEEN BORN THE WRONG SEX MARY IS THE NOVEL'S MAJOR CHARACTER TELLING HER SECTIONS IN THE FIRST PERSON WHILE THE OTHERS ARE NARRATED IN THE THIRD PERSON SHE'S HAD A HORRIBLE LIFE ONE SYMPATHETIC FRIEND EXCLAIMS OVER THE ADULT MARY AND THIS FRIEND DOESN'T YET KNOW JUST HOW DIFFICULT BEING MARY HAS BEEN THIS FRIEND WASN'T THERE WHEN MARY FIRST ESCAPED SUFFOLK FOR LONDON UNPACKED HER BAG AND THREW ALL HER SKIRTS OUT THE WINDOW INTO THE AIR SHAFT IN A MOMENT THAT SHE LATER RECKONS WAS THE START OF HER HAPPINESS GRADUALLY MARY ACHIEVES HER GOAL AND BECOMES MARTIN SHE UNDERGOES HORMONE AND SURGICAL TREATMENT HER BREASTS ARE REMOVED HER DOCTOR URGES HER TO HAVE A PENIS BUILT BUT SHE HESITATES ALREADY SHE HAS SCORED SOME VICTORIES ONE OF THE MEMORABLE MOMENTS OF HER LIFE COMES WHEN A BOAT ATTENDANT AT LONDON'S SERPENTINE CALLS HER LAD AFTER THAT SHE ENJOYS BEING CALLED SIR BY WAITERS BUT I NEVER FELT THE SAME STUPID BLISS THERE IS SOMETHING ABOUT THE UNEXPECTED THAT MOVES US AS IF THE WHOLE OF EXISTENCE IS PAID FOR IN SOME WAY EXCEPT FOR THAT ONE MOMENT WHICH IS FREE SHE ACHIEVES A SORT OF PLATEAU BUT IT HASN'T BEEN EASY EVERY STEP TOWARD MARTINHOOD IS AT A PRICE MS TREMAIN ISN'T PROMOTING A PUBLIC AGENDA ON GENDER THE MARY/MARTIN TRANSFORMATION FAR FROM THE MAGAZINECOVER CONSIDERATIONS OF GENDER CONFUSION TODAY IS A PRIVATE ACT BY AN EXTREMELY PRIVATE PERSON SACRED COUNTRY IS A STUNNING CONTRAST TO MS TREMAIN'S PREVIOUS NOVEL RESTORATION WHICH IS A COMPELLING COMIC TALE OF A ROGUISH DOCTOR WHO FIRST RISES AND THEN FALLS AT THE COURT OF CHARLES II NARRATED IN HIS VOICE WHETHER WRITING OF THE 17TH CENTURY OR THE 20TH SHE CREATES CHARACTERS WITH VIRTUOSO SKILL AGAIN AND AGAIN IN SACRED COUNTRY A MINOR CHARACTER BECOMES A STRONG PRESENCE IN ONLY A FEW PARAGRAPHS PSYCHIATRISTS PRIESTS NASHVILLE COUNTRY SINGERS AND SPINSTER SCHOOLTEACHERS DURING THE 30 YEARS OF THE NOVEL ONE MAJOR CHANGE IS THAT IT BECOMES EASIER TO FLEE THE RURAL EMPTINESS AND FAMILY QUAGMIRES THAT TRAPPED EARLIER GENERATIONS STILL NOT EVERYTHING HAS CHANGED FOR THE BETTER BY 1980 WHEN SACRED COUNTRY ENDS A GENTLY MAD PATIENT IN AN ASYLUM IS CRITICIZED BY THE STAFF FOR MAKING JOKES IN THE OLD DAYS IF YOU MADE A JOKE HERE IT WAS CONSIDERED AS A SIGN OF RECOVERY SHE COMPLAINS THE STAFF ARE MORE ADEQUATELY TRAINED IN THIS MODERN DAY AND AGE THEY REPLY 9304090094 930409 THE CLINTON BUDGET WIDER TRADE DEFICIT IS PROJECTED AS US PARTNERS BATTLE RECESSION BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BECAUSE THE US ECONOMY IS EXPANDING RIGHT WHEN MANY OF ITS MAJOR TRADING PARTNERS ARE BATTLING RECESSION THE CLINTON ADMINISTRATION EXPECTS THE CLOSELY WATCHED TRADE GAP TO WIDEN IN 1993 AND 1994 IN ITS NEW BUDGET PROPOSAL THE CLINTON ADMINISTRATION ESTIMATES THAT THE MERCHANDISE TRADE DEFICIT WILL WIDEN TO 110 BILLION TO 140 BILLION IN FISCAL 1994 WHICH BEGINS OCT 1 IN FISCAL 1992 THE MERCHANDISE TRADE GAP WAS 89 BILLION ON A CURRENT ACCOUNT BASIS THE BROADEST MEASURE OF THE US TRADE DEFICIT THE ADMINISTRATION EXPECTS THE GAP TO WIDEN TO 50 BILLION TO 90 BILLION IN FISCAL 1994 FROM 48 BILLION LAST YEAR THE BUDGET REPORT DIDN'T PROVIDE FIGURES FOR THE CURRENT YEAR BETWEEN FISCAL 1992 AND 1994 THE MERCHANDISE TRADE AND CURRENT ACCOUNT BALANCES ARE EXPECTED TO DETERIORATE MODERATELY AS A RESULT OF FASTER GROWTH IN THE UNITED STATES THAN AMONG OUR MAJOR TRADING PARTNERS THE REPORT SAID A STRENGTHENING DOMESTIC ECONOMY WILL TAKE IN MORE IMPORTS WHILE THE WEAKNESS IN FOREIGN ECONOMIES WILL HOLD DOWN PURCHASES OF US GOODS ANALYSTS SAID THAT THE ADMINISTRATION'S PROJECTIONS ARE REASONABLE AND THAT THE BULK OF THE DETERIORATION IN THE TRADE GAP WILL HAPPEN THIS YEAR BY 1994 THINGS WILL HAVE TURNED AROUND AGAIN FOR MOST OF OUR TRADING PARTNERS BUT NOT UNTIL LATER IN THE YEAR SO THE GAP WILL WIDEN AGAIN SAID BRIAN HORRIGAN ECONOMIST FOR LOOMIS SAYLES & CO IN BOSTON LOOMIS SAYLES ESTIMATES THAT THE MERCHANDISE TRADE GAP WILL WIDEN BY NEARLY 30 BILLION THIS YEAR AND BY ONLY 6 BILLION IN 1994 BRUCE STEINBERG SENIOR ECONOMIST FOR MERRILL LYNCH & CO ESTIMATES THE GAP WILL BEGIN TO NARROW IN 1995 THE CLINTON TEAM ALSO SAID THAT DOMESTIC SAVINGS WHICH INCLUDE PRIVATE SAVINGS AS WELL AS BUDGET SURPLUSES BY STATE AND LOCAL GOVERNMENTS SHOULD INCREASE SUBSTANTIALLY AS THE ECONOMY EXPANDS THE BUDGET REPORT PUT SAVINGS AT BETWEEN 330 BILLION AND 380 BILLION IN 1994 UP FROM 327 BILLION LAST YEAR THE SAVINGS OF AMERICANS ARE LIKELY TO GO UP AS INCOME RISES AND CORPORATE SAVINGS ARE LIKELY TO INCREASE AS A RESULT OF RISING PROFITS AND PRODUCTIVITY DESPITE THE INCREASE IN THE AMOUNT OF SAVINGS AMONG PEOPLE ANALYSTS SAID THE SAVINGS RATE ISN'T LIKELY TO GO UP BECAUSE INCOME GROWTH WILL BE TOO SLOW IT'S GOING TO BE HARD TO GET THE SAVINGS RATE UP UNDER THOSE CIRCUMSTANCES THAT'S GOING TO BE A CONTINUAL PROBLEM FOR THE ECONOMY SAID MR STEINBERG SURPLUSES FOR STATE AND LOCAL GOVERNMENTS ARE LIKELY TO GROW AS WELL BECAUSE OF INCREASED TAXES 9304090093 930409 FDA PANEL TO MEET ON DEVICES TO DETECT PREMATURE LABOR BY JONATHAN MAHLER STAFF REPORTER OF THE WALL STREET JOURNAL AFTER RECENT DEBATE ABOUT HOME UTERINE MONITORS' VALUE IN DETECTING PRETERM LABOR A FOOD AND DRUG ADMINISTRATION PANEL PLANS TO MEET THIS MONTH TO BETTER DEFINE HOW THOSE DEVICES SHOULD BE USED THE OBSTETRICS AND GYNECOLOGY DEVICES PANEL WILL CONVENE APRIL 29 AND 30 TO REVIEW PREMARKET APPROVAL APPLICATIONS FOR THE MONITORS AND TO DRAFT GUIDELINES FOR TESTING THE DEVICES ACCORDING TO A SPOKESMAN FOR THE AGENCY THE MEDICAL COMMUNITY HASN'T BEEN ABLE TO REACH ANY CONSENSUS ON THE DEVICE SOME OBSTETRICIANS ARGUE THE MONITORS SHOULD BE USED SOLELY FOR INVESTIGATION APPLICATIONS WHILE OTHERS MAINTAIN THE DEVICES ARE A VALUABLE TOOL IN THE EFFORT TO FORESTALL PREMATURE BIRTHS DOUBTS ABOUT THE MONITORS INTENSIFIED IN JULY AFTER A REPORT IN THE NEW ENGLAND JOURNAL OF MEDICINE QUESTIONED THE SAFETY OF A TOCOLYTIC DRUG CALLED RITODRINE SUCH DRUGS ARE FREQUENTLY PRESCRIBED BY PHYSICIANS AFTER THE DETECTION OF PRETERM LABOR IN WOMEN AT RISK OF DELIVERING EARLY PREMATURE BIRTH IS THE LEADING CAUSE OF INFANT MORTALITY AND MORBIDITY IN THE US ACCORDING TO SOME STATISTICS THE US HAS A HIGHER INFANT MORTALITY RATE THAN 21 OTHER INDUSTRIALIZED COUNTRIES THE UTERINE ACTIVITY MONITORS ARE CONNECTED TO PREGNANT WOMEN AT HIGH RISK OF EARLY DELIVERY FOR TWO HOURS EACH DAY TO DETECT CONTRACTIONS BEFORE THEY ARE FELT THE DEVICES THEN FEED THE INFORMATION OVER A TELEPHONE LINE TO A MONITORING STATION WHERE A NURSE ANALYZES THE DATA TOKOS MEDICAL CORP SANTA ANA CALIF RECEIVED FDA CLEARANCE TO MARKET THE ONLY COMMERCIALLY AVAILABLE MONITOR IN SEPTEMBER 1990 ITS POTENTIAL COMPETITORS HEALTHDYNE INC AND CAREMARK INTERNATIONAL INC ARE STILL TRYING TO GET CLEARANCE TO SELL THEIR RESPECTIVE PRODUCTS SOME BELIEVE THE CONTROVERSY SURROUNDING THE MONITORS IS THE RESULT OF AMBIGUITY ABOUT THEIR INTENDED PURPOSE TOKOS INSISTS THAT THE MONITORS ARE DIAGNOSTIC DEVICES WHICH CAN BE EXPECTED ONLY TO HELP PHYSICIANS DETECT PRETERM LABOR BUT A STUDY CONDUCTED AT THE UNIVERSITY OF MARYLAND MEDICAL CENTER FAULTED THE MONITORS FOR THEIR INABILITY TO REDUCE THE INCIDENCE OF PRETERM BIRTHS DR DAVID NAGEY WHO LED THE RESEARCH TEAM PRESENTED THE RESULTS IN FEBRUARY AT A MEETING OF THE SOCIETY OF PERINATAL OBSTETRICIANS IN SAN FRANCISCO THE COMPANY RESPONDED THAT JUDGING THE DEVICES ON THEIR ABILITY TO PREVENT PRETERM BIRTHS IS UNREALISTIC NEVERTHELESS NEWS OF THE STUDY WHICH INCLUDED 56 WOMEN AND WAS CONDUCTED AT THE UNIVERSITY OF MARYLAND MEDICAL CENTER HELPED SEND TOKOS'S STOCK INTO A TAILSPIN FROM WHICH IT HASN'T FULLY RECOVERED IN OVERTHECOUNTER TRADING YESTERDAY THE COMPANY'S STOCK CLOSED DOWN 125 CENTS AT 6375 THE STOCK'S 52WEEK HIGH WAS 3450 WITH A LOW OF 5875 JOSEPH E MILSAP AN ANALYST AT MORGAN KEEGAN THINKS THE FDA MEETINGS WILL ULTIMATELY PROVE CONSTRUCTIVE FOR THE MAKERS OF THE DEVICES THE CLINICAL PROTOCOLS NEED TO BE BETTER DEFINED IN ORDER FOR MANUFACTURERS TO PROVE THAT THE DEVICES WORK THE ANALYST SAYS THE MEETINGS WILL HELP THE PANEL BETTER ASSESS WHAT SHOULD BE EXPECTED FROM THE MONITORS IN TERMS OF PERFORMANCE WHILE ALSO HELPING DETERMINE WHICH PATIENTS ARE BEST SERVED BY THE MONITORS THE STAGE IS BEING SET WHEREBY THE OBSTETRICS COMMUNITY WILL INCREASINGLY ACCEPT HOME UTERINE MONITORS AS THE STANDARD OF CARE FOR A SPECIFIC PATIENT PROFILE MR MILSAP SAID THE MEETINGS SHOULD ENABLE ADDITIONAL MONITORS TO OBTAIN COMMERCIAL MARKETING APPROVAL 9304090092 930409 WORLD MARKETS TOKYO STOCKS FIRM ON LATE BUYING SPREE PRICES IN LONDON END LITTLE CHANGED AHEAD OF HOLIDAY A WALL STREET JOURNAL NEWS ROUNDUP TOKYO PRICES SHRUGGED OFF EARLYAFTERNOON WEAKNESS THURSDAY TO FINISH FIRMER WITH BLUECHIP STOCKS LEADING THE ADVANCE LONDON SHARES ENDED LITTLE CHANGED AS MANY INVESTORS LEFT THE MARKET EARLY FOR THE FOURDAY EASTER WEEKEND IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SURGED 34243 POINTS WEDNESDAY ROSE 13804 TO 1996727 THE HIGHEST CLOSING LEVEL SINCE MARCH 25 1992 WHEN IT STOOD AT 2022678 IN INTRADAY TRADING THE INDEX REACHED 2004116 BUT FAILED TO HOLD ABOVE 20000 FOR A SECOND CONSECUTIVE SESSION IN TOKYO FRIDAY THE NIKKEI INDEX ROSE 4839 POINTS TO CLOSE THE MORNING SESSION AT 2001566 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 700 MILLION SHARES DOWN FROM 8643 MILLION SHARES ON WEDNESDAY GAINERS TOPPED LOSERS 600473 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 2975 POINTS WEDNESDAY ADDED 948 TO 156870 PRICES WERE SET BACK EARLY IN THE AFTERNOON SESSION AS INVESTORS CONSOLIDATED HOLDINGS BUT CAUGHT FIRE IN THE FINAL HOUR ON KEEN BUYING INTEREST BY INDIVIDUALS OVERSEAS INVESTORS AND BROKERAGE FIRMS THE NIKKEI IN THE PAST MONTH HAS SOARED 19 OF WHICH 74 PERCENTAGE POINTS HAVE COME IN THE PAST FIVE SESSIONS CAUSING SOME PARTICIPANTS TO WORRY THAT THE MARKET IS OVERHEATING YET FOREIGN INVESTORS WHOSE PORTFOLIOS ARE UNDERWEIGHTED IN JAPANESE STOCKS WERE TRYING TO REBALANCE THEIR HOLDINGS THOUGH THEIR ACTIVITY WAS SOMEWHAT SUBDUED BECAUSE MANY WORLD MARKETS WILL BE CLOSED STARTING TODAY FOR A LONG EASTER WEEKEND THUS THE TOKYO RALLY'S CONTINUATION MAY DEPEND ON RENEWED BUYING BY JAPANESE INSTITUTIONAL INVESTORS WHICH HAVE SIMPLY BEEN SELLING ISSUES AND REINVESTING PROCEEDS IN OTHERS THE BIG PLAYERS HAVE BEEN NOTABLY QUIET DURING THE RECENT BUYING FRENZY IN LONDON THE FINANCIALTIMES STOCK EXCHANGE 100SHARE INDEX EDGED DOWN 03 POINT TO 28218 THE FT 30STOCK INDEX FELL 18 POINTS TO 21808 VOLUME SHRANK TO 4515 MILLION SHARES FROM 508 MILLION SHARES A DAY EARLIER THE MARKET OPENED HIGHER ON WALL STREET'S STRENGTH THE PREVIOUS DAY BUT QUICKLY REVERSED COURSE AS A SCARCITY OF INVESTOR INTEREST MADE VOLUME THIN AND PRICES DRIFTED LOWER PRICES SLIPPED OFF AGAIN WHEN WALL STREET'S STRONG START YESTERDAY TURNED MIXED THEN A FIRM LONDON STOCKINDEX FUTURES MARKET LENT RENEWED SUPPORT TO STOCKS AS DEALINGS DREW TO A CLOSE IN FRANKFURT SHARE PRICES FIRMED IN FEATURELESS DEALINGS TO END A HOLIDAYSHORTENED WEEK THE EXCHANGE IS CLOSED THROUGH MONDAY FOR EASTER THE DAX 30STOCK INDEX ROSE 542 POINTS TO 165573 AFTER BEING HELD TO A RANGE OF JUST 351 POINTS PLAYERS EXPECTED THE CONSOLIDATION WOULD CONTINUE UNTIL AT LEAST LATE NEXT WEEK WHEN SPECULATION MAY HEAT UP ABOUT INTERESTRATE CUTS AT THE APRIL 22 MEETING OF THE GERMAN CENTRAL BANK PARIS STOCKS ENDED WITH SMALL GAINS AFTER FALLING FROM EARLY HIGHS AS INVESTORS LIGHTENED POSITIONS FOLLOWING THE POLICY SPEECH IN PARLIAMENT BY PRIME MINISTER EDOUARD BALLADUR EQUITIES HAD BEEN SPURRED BY MOUNTING EXPECTATIONS THAT THE BANK OF FRANCE WOULD EASE ITS GRIP ON CREDIT POLICY TO REFLECT A STEADY DECLINE IN SHORTTERM MARKET RATES SINCE THE CENTERRIGHT COALITION TOOK CONTROL OF THE NATIONAL ASSEMBLY ON MARCH 28 BUT THE CENTRAL BANK LEFT ITS BENCHMARK INTEREST RATES UNCHANGED PARTICIPANTS REACTED FAVORABLY TO MR BALLADUR'S REALISTIC ASSESSMENT OF FRANCE'S ECONOMIC SITUATION AND HIS REAFFIRMATION THAT THE FRENCH FRANC WILL REMAIN ANCHORED TO THE GERMAN MARK BUT THE MARKET FELL WHEN MR BALLADUR SAID THE BUDGET DEFICIT WOULD BALLOON THIS YEAR TO THE TOP END OF EXPECTATIONS MILAN PRICES CLIMBED SHARPLY LED INITIALLY BY STRENGTH IN THE AUTO SECTOR AND BOOSTED LATER BY THE ITALIAN CABINET'S DETAILING OF ITS PRIVATIZATION PROPOSALS AND APPROVAL OF A REVISED DECREE LAW ON PENSION FUNDS THE MEASURE INCREASES THE TAXDEDUCTIBLE CONTRIBUTIONS ALLOWED BY EMPLOYEES AND INCLUDES MUTUAL FUNDS AMONG INSTITUTIONS ALLOWED TO MANAGE THE PENSION FUNDS IN SYDNEY'S HALFDAY SESSION AHEAD OF A FOURDAY EASTER WEEKEND STOCKS RALLIED ON NEWS OF STRONGERTHANEXPECTED GROWTH IN AUSTRALIAN EMPLOYMENT LAST MONTH HONG KONG SHARES ROSE AS LATE BUYING INTEREST RECOUPED AFTERNOON LOSSES ALSO PRIOR TO A FOURDAY BREAK SINGAPORE EQUITIES RETREATED SNAPPING A FOURDAY RECORDBREAKING RALLY AS INVESTORS SETTLED SOME POSITIONS AHEAD OF A THREEDAY HOLIDAY FOR THE BOURSE IN TAIPEI STOCKS FINISHED WITH LOSSES FOLLOWING HEAVY PROFITTAKING SEOUL PRICES SNAPPED A FOURSESSION WINNING STREAK DROPPING IN WHAT WAS VIEWED AS A CORRECTION AMONG CORPORATE DEVELOPMENTS IN TOKYO ISUZU MOTORS LOST 15 YEN OR 28 TO 528 YEN 465 THE AUTO MAKER SAID IT CAN'T RESUME INTERIM DIVIDEND PAYMENTS IN THE CURRENT FISCAL YEAR CITING SEVERE BUSINESS CONDITIONS BECAUSE OF THE YEN'S SHARP APPRECIATION AND SOFTNESS IN THE JAPANESE AND US ECONOMIES THE PAYOUT DECISION APPLIES TO THE FIRST HALF ENDING APRIL 30 BUT ISUZU SAID ITS POOR EARNINGS OUTLOOK INDICATES IT WON'T PAY A FISCAL YEAREND DIVIDEND EITHER ISUZU HASN'T PAID A DIVIDEND IN THE PAST THREE YEARS IN LONDON SUN ALLIANCE GROUP DECLINED 5 PENCE OR 14 TO 349 PENCE 528 THE LIFE AND GENERAL INSURER'S 1992 PRETAX LOSS NARROWED TO 1296 MILLION 1961 MILLION FROM 4662 MILLION IN 1991 IN LINE WITH MARKET EXPECTATIONS AS UNDERWRITING LOSSES IN BRITAIN WERE CUT TO 190 MILLION FROM 491 MILLION AND LOSSES ON MORTGAGE INSURANCE IN THE COUNTRY FELL TO 186 MILLION FROM 320 MILLION SUN LEFT THE DIVIDEND UNCHANGED AT 1425 PENCE A SHARE EXPRESSING CONFIDENCE ABOUT A RETURN TO PROFITABILITY THIS YEAR IN PARIS GENERALE DES EAUX FINISHED UNCHANGED AT 2359 FRENCH FRANCS 43075 THE WATER AND MUNICIPAL SERVICES AND CONSTRUCTION COMPANY'S 1992 PROFIT ROSE 11 TO 29 BILLION FRANCS 5295 MILLION IN LINE WITH PROJECTIONS MADE LAST YEAR THE COMPANY ALSO INCREASED ITS DIVIDEND 5 TO 43 FRANCS A SHARE 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 9304090091 930409 FOREIGN EXCHANGE DOLLAR FALLS TO PROFITTAKING FUELED BY WEAK INFLATION REPORT FOR MARCH BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SLIPPED AS NEWS OF UNEXPECTEDLY TEPID US INFLATION LED INVESTORS TO CASH IN ON THE DOLLAR'S RISE AGAINST EUROPEAN CURRENCIES OVER THE LAST TWO DAYS DEALERS SAID THE YEN AFTER SURGING TO A HISTORIC HIGH AGAINST THE DOLLAR EARLY YESTERDAY FELL VICTIM TO A LARGELY TECHNICAL CORRECTION IN CROSS TRADING DEALERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16055 MARKS DOWN FROM 16195 MARKS LATE WEDNESDAY IN NEW YORK THE DOLLAR WAS CHANGING HANDS AT 11335 YEN OFF FROM 11352 YEN STERLING WAS TRADING AT 15285 UP FROM 15135 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 16052 MARKS AND AT 11345 YEN WITH MOST EUROPEAN AND NORTH AMERICAN PLAYERS LEAVING THE MARKET AHEAD OF THE EASTER WEEKEND DEALERS SAID ACTIVITY WAS THIN EXAGGERATING MARKET MOVES STARVED FOR OTHER NEWS PARTICIPANTS FOCUSED ON THE REPORT OF US PRODUCER PRICES FOR MARCH RECENT SIGNS OF INCREASING INFLATION HAD SPOOKED THE BOND MARKET DRIVING LONGTERM INTEREST RATES UP DEALERS SAID THE MARKET WAS LOOKING FOR CONFIRMATION OF THOSE FEARS IN THE REPORT BUT THE LABOR DEPARTMENT SAID THE KEY CORE PRODUCER PRICE INDEX WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY COMPONENTS ROSE ONLY 01 IN MARCH BELOW EXPECTATIONS OF A 03 JUMP ALEXIS MCCARTHY A TRADER AT BANQUE INDOSUEZ SAID THE DOLLAR FELL TO PROFIT TAKING AS SOON AS OUR NUMBERS CAME OUT THE PRICE REPORT SET OFF A SHARP RALLY IN THE US BOND MARKET AS INVESTORS PUT ASIDE FEARS THAT INFLATION WOULD EAT INTO THEIR RETURNS THE TREASURY'S BENCHMARK 30YEAR BOND ENDED UP 1 1/4 POINTS AT 103 13/32 YIELDING 685 BUT PLAYERS NOTED THAT THE PRICE REPORT IS SO FAR ONLY AN ISOLATED INDICATION OF WEAK INFLATION ERIK LEHTIS A VICE PRESIDENT AT CREDIT AGRICOLE SAID MUCH OF THE DOLLAR'S WEAKNESS CAME FROM A TECHNICAL MALAISE THAT RESULTED FROM THE DOLLAR'S INABILITY TO EXTEND ITS EARLIER GAINS THE FAILURE TO BREAK 162 MARKS WAS THE MAIN REASON BEHIND THE MOVE DOWN HE SAID THE MARK'S SHARP REBOUND AGAINST THE YEN LATER YESTERDAY ACCELERATED THE MARK'S GAINS AGAINST THE DOLLAR DEALERS SAID STARTING TUESDAY THE YEN HAD GAINED STEADILY AGAINST THE MARK AND AS THE MOVE CONTINUED DEALERS SAID SPECULATORS ADDED TO THE PRESSURE ON THE MARK IN ASIAN TRADING THURSDAY THE YEN PUSHED THE MARK BELOW 70 YEN ITS LOWEST LEVEL IN FOUR YEARS THE YEN'S STRENGTH ALSO SPILLED OVER AGAINST THE DOLLAR DEALERS SAID JUST AS THE MARK WAS TUMBLING TO NEW LOWS THE DOLLAR ALSO SET A POSTWORLD WAR II LOW OF 11290 YEN BELOW THE PREVIOUS RECORD OF 11334 YEN SET MONDAY BUT THE LARGELY SPECULATIVE SELLING OF MARKS FOR YEN FAILED TO PUSH THE MARK CONVINCINGLY BELOW 70 YEN MR LEHTIS SAID AS INVESTORS SCRAMBLED TO REVERSE THEIR POSITIONS THE MARK JUMPED AND THE YEN WEAKENED LATE IN NEW YORK THE MARK WAS QUOTED AT 70610 YEN UP FROM 70096 YEN LATE WEDNESDAY WITH THE US RECOVERY STRUGGLING DEALERS SAID THE HUGE GOVERNMENT SPENDING PROGRAM EXPECTED TO BE ANNOUNCED NEXT WEEK IN JAPAN MAKES THE YEN AN ATTRACTIVE INVESTMENT IN ADDITION DEALERS SAID THE VIEW THAT JAPAN AND ITS TRADING PARTNERS WANT TO SEE A STRONGER YEN AS A WAY TO REDUCE JAPAN'S TRADE SURPLUS ENCOURAGES YEN BUYERS SO FAR HOWEVER JAPANESE AUTHORITIES HAVE OPPOSED A QUICK APPRECIATION OF THE YEN FEARING THE EFFECT ON JAPANESE COMPANIES ON THURSDAY DEALERS SAID THE BANK OF JAPAN WAS CALLING BROKERS TO CHECK RATES USUALLY A PRELUDE TO INTERVENTION THERE ALSO WERE RUMORS THE CENTRAL BANK HAD BOUGHT DOLLARS 9304090090 930409 ECONOMY REPORT ON PRICES EASES WORRIES OVER INFLATION PRODUCER FIGURE ROSE 04 CORE RATE UP BY 01 REFLECTING STABILIZATION BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT'S LATEST REPORT ON PRICES AT THE WHOLESALE LEVEL MAY HELP QUELL RECENT WORRIES OF INFLATION PRODUCER PRICES ROSE 04 IN MARCH THE LABOR DEPARTMENT SAID THE SAME AS IN FEBRUARY BUT THE SOCALLED CORE RATE OF INFLATION CONSIDERED MORE ACCURATE BECAUSE IT EXCLUDES THE VOLATILE FOOD AND ENERGY SECTORS INCREASED A TINY 01 IN MARCH THE CORE RATE ROSE A MORE WORRISOME 03 THE MONTH BEFORE THIS REPORT KIND OF BRINGS US BACK TO REALITY SAID CHARLES LIEBERMAN DIRECTOR OF FINANCIAL MARKETS RESEARCH FOR CHEMICAL SECURITIES INC THE ECONOMIC FUNDAMENTALS JUST AREN'T THERE TO BRING ON BIG PRICE INCREASES THE REPORT SENT BOND PRICES SOARING THOUGH STOCK PRICES WERE MIXED AND THE DOLLAR FELL SEPARATELY THE COMMERCE DEPARTMENT SAID US BUSINESSES PLAN TO SPEND 58231 BILLION ON NEW PLANT AND EQUIPMENT IN 1993 BEFORE ADJUSTMENTS FOR INFLATION THAT'S 66 MORE THAN LAST YEAR AND IS UP FROM A DECEMBER ESTIMATE OF 53 THAT WOULD BE A BIG JUMP FROM THE 33 INCREASE IN 1992 PLANT AND EQUIPMENT SPENDING ACTUALLY DROPPED IN 1991 THOUGH PRICES MAY NOT BE HEATING UP ANALYSTS SAID THAT THE 1992 DAYS OF PRICE DECELERATION ARE MOST LIKELY OVER LAST YEAR PRICES WERE DECELERATING BUT THIS YEAR THEY ARE STABILIZING SAID JOHN GODFREY CHIEF ECONOMIST OF BARNETT BANKS INC IN FLORIDA THE CLINTON ADMINISTRATION USED THE GOOD INFLATION FIGURES TO FURTHER ITS CASE FOR A STIMULUS PLAN THIS IS NOT AN ECONOMY WHICH IS SUFFERING FROM SUBSTANTIAL INCREASE IN INFLATIONARY PRESSURE SAID LAURA TYSON HEAD OF THE COUNCIL OF ECONOMIC ADVISERS IT IS JUST NOT A CREDIBLE OR WARRANTED POSITION TO TAKE PARTICULARLY WHEN YOU LOOK AT EXCESS CAPACITY IN THE REST OF THE WORLD EXCESS CAPACITY AT HOME UNEMPLOYMENT AT HOME CAPACITY UTILIZATION RATES AT HOME SO THE ARGUMENT FOR A STIMULUS IS STILL VERY STRONG SEPARATELY IN WRITTEN ANSWERS TO QUESTIONS POSED BY THE SENATE BANKING COMMITTEE FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THE ECONOMY IS NEARING THE FED'S GOAL OF PRICE STABILITY I DO NOT THINK WE ARE THERE YET HE SAID BUT WE MAY NOT BE VERY FAR FROM THAT POINT MR GREENSPAN'S ANSWERS WERE DATED APRIL 5 AND RELEASED BY THE COMMITTEE YESTERDAY PRICES AT THE WHOLESALE LEVEL WERE DRIVEN UP MAINLY BY A 13 JUMP IN ENERGY PRICES LAST MONTH SPREAD ACROSS ALL CATEGORIES FOOD PRICES WERE UP 05 AFTER DROPPING IN FEBRUARY THE COST OF EGGS SHOT UP 126 DURING THE MONTH PERHAPS REFLECTING THE GREATER DEMAND IN ADVANCE OF EASTER AND PASSOVER IN MOST OTHER AREAS THERE WAS PRICING MODERATION CAPITAL EQUIPMENT COSTS INCREASED 02 INTERMEDIATE AND CRUDE GOOD PRICES ROSE 03 AND 04 RESPECTIVELY SO FAR THIS YEAR THE PRODUCER PRICE INDEX HAS RISEN AT A 39 ANNUAL RATE WHILE THE CORE RATE HAS RISEN AT A 33 PACE THE NEW CAPITAL SPENDING REPORT IS ENCOURAGING HOWEVER ANALYSTS CAUTIONED THAT ACTUAL BUSINESS INVESTMENT HAS FALLEN SHORT OF PLANS FOR THE PAST THREE YEARS ONE DISCOURAGING ITEM IN THE REPORT WAS THAT AIRCRAFT COMPANIES PLAN A 273 REDUCTION IN SPENDING SUGGESTING CONTINUED PROBLEMS WITHIN THE AEROSPACE INDUSTRY ADJUSTED FOR INFLATION CAPITAL SPENDING IS EXPECTED TO RISE 82 THIS YEAR ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS THE BREAKDOWN BY MAJOR INDUSTRIES OF CAPITAL SPENDING RESULTS FOR PAST PERIODS AND ESTIMATES FOR CURRENT AND FUTURE PERIODS FOR COMPARABILITY WITH ANNUAL TOTALS THE QUARTERLY FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF DOLLARS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR MARCH BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM MARCH 1992 9304090089 930409 LIMITED INC REGROUPS APPOINTS 4 EXECUTIVES AS FIVE OTHERS RESIGN COLUMBUS OHIO LIMITED INC'S FLAGSHIP LIMITED STORES DIVISION SAID IT MADE A SERIES OF LEADERSHIP CHANGES WHILE DISCLOSING THAT SEVERAL OF ITS EXECUTIVES RESIGNED TO PURSUE OTHER OPPORTUNITIES IT CHARACTERIZED THE CHANGES AS PART OF AN ONGOING INITIATIVE TO REBUILD THE LIMITED STORES THE DEPARTING EXECUTIVES WERE ROGER MARKFIELD EXECUTIVE VICE PRESIDENT AND GENERAL MERCHANDISING MANAGER MIKE DURIK EXECUTIVE VICE PRESIDENTADMINISTRATION HOBERT RAIKES VICE PRESIDENT MERCHANDISE/BOTTOMS AND RICHARD LOH VICE PRESIDENT PRODUCT DEVELOPMENT A FIFTH EXECUTIVE JOSEPH GROMEK WAS APPOINTED EARLIER THIS WEEK SENIOR VICE PRESIDENT AND GENERAL MERCHANDISE MANAGER OF ANNTAYLOR STORES CORP NEW YORK MR GROMEK HAD BEEN VICE PRESIDENT OF READYTOWEAR THE RETAILER SAID HOWARD GROSS PRESIDENT WILL ASSUME THE GENERAL MERCHANDISING MANAGER'S RESPONSIBILITIES IT NAMED KATHY FAHY FORMERLY SENIOR MERCHANT FOR BLAZERS AND SUITS VICE PRESIDENT READY TO WEAR HELEN CHANG IS NAMED DIRECTOR OF FASHION RESEARCH AND PRODUCT DEVELOPMENT WHILE ARNOLD KANARICK EXECUTIVE VICE PRESIDENT AND DIRECTOR OF HUMAN RESOURCES AT THE LIMITED BECOMES THE DIVISION'S ACTING DIRECTOR OF HUMAN RESOURCES 9304090088 930409 WHO'S NEWS EXGM HEAD IS CONSIDERED FOR UNIVERSITY PRESIDENCY DETROIT FORMER GENERAL MOTORS CORP CHAIRMAN ROBERT C STEMPEL IS AMONG 138 PEOPLE BEING CONSIDERED FOR THE PRESIDENCY OF MICHIGAN STATE UNIVERSITY IN LANSING MR STEMPEL WHO ATTENDED NIGHT CLASSES AT MSU TO GET HIS MASTER'S DEGREE IN BUSINESS ADMINISTRATION SAID THROUGH A SPOKESMAN THAT HE'S HONORED TO BE CONSIDERED I WOULD SERIOUSLY CONSIDER THE PRESIDENCY IF IT IS OFFERED TO ME MR STEMPEL RESIGNED AS GM'S CHAIRMAN LAST NOVEMBER UNDER PRESSURE FROM OUTSIDE DIRECTORS UNHAPPY WITH THE COMPANY'S PERFORMANCE MR STEMPEL COMMENTED IN RESPONSE TO A REPORT IN THE MSU CAMPUS NEWSPAPER THE STATE NEWS WHICH PUBLISHED A LIST OF THE CANDIDATES SCHOOL OFFICIALS DECLINED TO COMMENT ON THE LIST SAYING IT'S AGAINST UNIVERSITY POLICY TO RELEASE OR COMMENT ON SUCH INFORMATION OTHER NOMINEES INCLUDED ON THE LIST PUBLISHED BY THE STATE NEWS ARE RETIRED US GEN NORMAN SCHWARZKOPF SPELMAN COLLEGE PRESIDENT JOHNETTA COLE AND PETER SECCHIA A FORMER US AMBASSADOR TO ITALY THE NEW PRESIDENT WILL SUCCEED JOHN DIBIAGGIO WHO LEFT MICHIGAN STATE LAST FALL TO RUN TUFTS UNIVERSITY IN MASSACHUSETTS INTERIM PRESIDENT GORDON GUYER HAS TOLD THE UNIVERSITY'S EIGHTMEMBER BOARD HE PLANS TO LEAVE THE POST BY SEPTEMBER 9304090087 930409 LAW LEGAL BEAT PROSECUTOR TELLS JURY THAT POLICE SOUGHT TO TEACH KING A LESSON' BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES A FEDERAL PROSECUTOR ACKNOWLEDGING THAT RODNEY KING DESERVED TO BE ARRESTED BECAUSE OF HIS ERRATIC DRIVING ARGUED THAT FOUR POLICE OFFICERS BEAT HIM INTO SUBMISSION BECAUSE HE WAS DISRESPECTFUL THEN COVERED UP THEIR ACTIONS WITH LIES IN HIS CLOSING ARGUMENT IN THE TRIAL ASSISTANT US ATTORNEY STEVEN CLYMER SAID THE OFFICERS WANTED TO TEACH RODNEY KING A LESSON BECAUSE HE WAS DRUNK AND A WISEACRE FOR THE OFFICERS TO BE CONVICTED ON CHARGES OF CIVIL RIGHTS VIOLATIONS THE GOVERNMENT MUST PROVE THAT THEY INTENDED TO USE TOO MUCH FORCE IN TAKING MR KING INTO CUSTODY AN IMPROPER MOTIVE SUCH AS TO PUNISH MR KING COULD HELP SHOW SUCH INTENT ALTHOUGH THE CASE INFLAMED RACIAL TENSIONS AND LED TO RIOTING WHEN THE OFFICERS WERE ACQUITTED ON NEARLY EVERY CHARGE IN A STATE JURY TRIAL LAST YEAR NO MENTION OF RACE WAS MADE DURING THE GOVERNMENT'S CLOSING ARGUMENT MR KING IS BLACK THE OFFICERS ARE WHITE THERE WAS INCONSISTENT TESTIMONY IN THE TRIAL ABOUT WHETHER THE OFFICERS HAD USED RACIAL EPITHETS MR KING TESTIFIED HE THOUGHT HE HEARD THE WORD NIGGER THEN SAID HE WASN'T SURE AFTER THE PROSECUTOR'S THREEHOUR CLOSING ARGUMENT THE FIRST OF FOUR DEFENSE LAWYERS COMPLETED HIS REJOINDER LIKELY PUSHING THE BEGINNING OF JURY DELIBERATIONS TO TOMORROW IRA SALZMAN WHO REPRESENTS SGT STACEY KOON THE COMMAND OFFICER AT THE SCENE SAID THE FOUR DEFENDANTS WERE SACRIFICIAL LAMBS BECAUSE THE CITY HAD A PUBLIC RELATIONS NIGHTMARE AFTER THE AMATEUR VIDEOTAPE OF THE 1991 BEATING WAS WIDELY SHOWN IN A SOMETIMES RAMBLING SPEECH THAT INCLUDED QUOTATIONS FROM THE BIBLE HEMINGWAY AND THE MOVIE CHINATOWN MR SALZMAN TOLD JURORS THAT THE VIDEOTAPE IS THE BEST EVIDENCE FOR THE DEFENSE BECAUSE IT SHOWS THE OFFICERS CHECKING WATCHING AND EVALUATING THE SITUATION AND NOT ADMINISTERING AN UNREMITTING RAIN OF BLOWS THEY SHOWED GRACE UNDER PRESSURE HE SAID MR SALZMAN ACCUSED MR KING OF INJECTING THE ISSUE OF RACE INTO THE PROCEEDINGS MUCH OF THE GOVERNMENT'S CLOSING ARGUMENT ATTACKED THE CREDIBILITY OF MR KOON WHO IS CHARGED WITH ALLOWING THE POLICE UNDER HIS CONTROL TO ADMINISTER AN UNLAWFUL BEATING WITH THE VIDEOTAPE FROZEN ON AN IMAGE OF MR KING CURLED UP AFTER HAVING BEEN STRUCK WITH MORE THAN A DOZEN BATON BLOWS MR CLYMER SAID ASK YOURSELF DOES THIS LOOK LIKE A MAN WITH SUPERHUMAN STRENGTH' THAT'S WHAT KOON WANTS YOU TO BELIEVE MR KOON THE ONLY OFFICER TO TAKE THE STAND DURING THE SIXWEEK TRIAL TESTIFIED THAT HE THOUGHT MR KING HAD TAKEN THE DRUG PCP AND POSED A THREAT A KEY THEME OF THE DEFENSE WAS THAT THE OFFICERS' PERCEPTIONS OF THE SITUATION AT THE TIME HAVE TO BE CONSIDERED BY THE JURY MR CLYMER SAID THE SERGEANT HAD A MOTIVE TO LIE ABOUT WHAT HE HAD SEEN THE PROSECUTOR CONDUCTED A FOCUSED POINTBYPOINT REVIEW OF THE EVIDENCE HE PLAYED AN ENHANCED VERSION OF THE VIDEOTAPE REPEATEDLY AND RAISED A PLASTIC SKULL COLORED TO SHOW MR KING'S INJURIES AT ONE POINT SEVERAL JURORS ROSE FROM THEIR CHAIRS AS MR CLYMER PITCHED FORWARD TO THE GROUND WITH OUTSTRETCHED ARMS AS MR KING WAS SEEN DOING IN THE VIDEO TO DEMONSTRATE THAT THE SUSPECT DIDN'T FALL HARD ON HIS FACE THE DEFENSE HAS CONTENDED THAT MOST OF MR KING'S FACIAL INJURIES WERE CAUSED BY THE FALL NOT BY BATON BLOWS MR CLYMER THEN PRESENTED AN ENLARGED POSTER OF A LOS ANGELES POLICE DEPARTMENT RULE THAT FORBIDS KICKS WHEN THEY AREN'T NECESSARY TO CONTROL A SUSPECT HE ALSO PLAYED A PORTION OF THE TAPE THAT SHOWS MR KING LYING ON THE GROUND WITH HIS BACK TO OFFICER LAURENCE POWELL WHO IS STRIKING HIM WITH A BATON AND OFFICER TIMOTHY WIND WHO IS KICKING HIM ONE QUESTION YOU HAVE TO ASK YOURSELF AS JURORS IS IS THIS THE WAY YOU WANT POLICE OFFICERS TO TREAT CITIZENS OF THE UNITED STATES' MR CLYMER SAID THE BEATING ONLY ENDED HE SAID AFTER MR KING IS HEARD ON THE TAPE SAYING PLEASE STOP WHEN RODNEY KING BEGGED THEM TO STOP THEY ACCOMPLISHED THEIR PURPOSE THEY HAD BEATEN HIM INTO SUBMISSION THE PROSECUTOR SAID THAT THE OFFICERS' WRONGFUL INTENT CAN ALSO BE SEEN IN THEIR BEHAVIOR AFTER THE BEATING FOR EXAMPLE HE SAID ON THE WAY TO THE HOSPITAL MR KING WAS TAKEN ON A NEARLY TWOHOUR DETOUR TO A POLICE STATION MR CLYMER REMINDED JURORS OF EVIDENCE THAT MR POWELL SPENT MUCH OF THE TIME AT THE STATION TELLING WAR STORIES AND MR WIND OMITTED THE TRIP FROM HIS POLICE LOG MR SALZMAN DERIDED THE PROSECUTORS AS CONSPIRACY THEORISTS WHO CONCOCTED A FALSE THEORY THAT THE OFFICERS COVERED UP THEIR ACTIONS THE LEGAL DOCTRINE THAT ALLOWS POLICE TO SEARCH SUSPECTS FOR WEAPONS WITHOUT A WARRANT DOESN'T ALLOW THEM TO SEIZE OTHER EVIDENCE THAT THEY MIGHT TOUCH DURING THE FRISK NEW YORK STATE'S HIGHEST COURT RULED THE RULING CAME IN A CASE INVOLVING A FRISK BY A NEW YORK CITY POLICE OFFICER OF A SUSPECTED DRUG DEALER ROBERT DIAZ THE OFFICER DIDN'T FIND A WEAPON BUT ALLEGEDLY DID FIND 18 VIALS OF CRACK AS A RESULT OF A DECISION BY THE US SUPREME COURT IN A 1968 CASE TERRY VS OHIO POLICE ARE ALLOWED TO FRISK SUSPECTS FOR WEAPONS WITH LESS THAN THE TYPICAL PROBABLE CAUSE REQUIRED FOR A SEARCH WARRANT PROSECUTORS ARGUED IN THE DIAZ CASE THAT THE VIALS SHOULD BE ADMITTED AS EVIDENCE BECAUSE THEY WERE PLAINLY TOUCHED BY POLICE DURING THE FRISK THE PROSECUTORS POINTED OUT THAT THE SUPREME COURT ALSO ALLOWS EVIDENCE TO BE SEIZED WITHOUT A WARRANT IF IT'S IN PLAIN VIEW OF POLICE IN A 42 RULING THE COURT OF APPEALS REJECTED THE PLAIN TOUCH DOCTRINE AND THREW OUT THE EVIDENCE UNLIKE THE ITEM IN PLAIN VIEW IN WHICH THE OWNER HAS NO PRIVACY EXPECTATION THE OWNER OF AN ITEM CONCEALED BY CLOTHING OR OTHER COVERING RETAINS A LEGITIMATE EXPECTATION THAT THE ITEM'S EXISTENCE AND CHARACTERISTICS WILL REMAIN PRIVATE THE MAJORITY RULED THE COURT ADDED THAT TO ALLOW THE USE OF THE VIALS AS EVIDENCE WOULD WRONGLY BLUR THE LINE ON WHAT KIND OF FRISKS ARE PERMISSIBLE THE IDENTITY AND CRIMINAL NATURE OF A CONCEALED OBJECT ARE NOT LIKELY TO BE DISCERNIBLE UPON A MERE TOUCH OR PAT WITHIN THE SCOPE THE INTRUSION AUTHORIZED BY TERRY THE COURT WROTE CRIMINALDEFENSE LAWYERS HAILED THE DECISION GERALD LEFCOURT A DIRECTOR OF THE NATIONAL ASSOCIATION OF CRIMINAL DEFENSE LAWYERS SAID THE DECISION IS A RARE EXAMPLE OF A COURT LIMITING THE ABILITY OF POLICE TO SEARCH FOR EVIDENCE WITHOUT A WARRANT BUT HE SAID THAT HE DOUBTED THE DECISION WOULD HAVE A GREAT EFFECT ON THE FEDERAL COURTS WHICH HAVE BEEN MUCH MORE LIBERAL THAN STATE COURTS IN THEIR INTERPRETATIONS OF WHAT STANDARDS POLICE HAVE TO MEET IN SEIZING EVIDENCE WITHOUT A WARRANT KENNETH FINKELMAN A PUBLIC DEFENDER WHO REPRESENTED MR DIAZ SAID THAT THE PLAIN TOUCH DOCTRINE IS NOT COMMONLY ARGUED BY PROSECUTORS AND THAT A NUMBER OF OTHER STATE COURTS HAVE ALSO REJECTED IT A SPOKESMAN FOR MANHATTAN DISTRICT ATTORNEY ROBERT MORGENTHAU SAID THE OFFICE ACCEPTS THE RULING PEOPLE OF NEW YORK VS DIAZ NEW YORK COURT OF APPEALS ALBANY NY NO 67 A FEDERAL JUDGE IS CHALLENGING A DECISION BY THE OFFICE THAT OVERSEES THE ADMINISTRATION OF US COURTS TO SUSPEND CIVIL JURY TRIALS AS OF MAY 12 THE ADMINISTRATIVE OFFICE OF THE COURTS TOLD JUDGES LAST MONTH NOT TO SCHEDULE CIVIL JURY TRIALS AFTER THAT DATE BECAUSE THERE'S NOT ENOUGH MONEY IN THE BUDGET TO PAY JURORS IN BOTH CIVIL AND CRIMINAL CASES BUT JUDGE JACK B WEINSTEIN OF BROOKLYN NY SAYS HE'LL KEEP ON SCHEDULING TRIALS JUDGE WEINSTEIN A RESPECTED JURIST KNOWN FOR BEING OUTSPOKEN SAID THAT THE ADMINISTRATIVE OFFICE DOESN'T HAVE THE AUTHORITY TO TELL JUDGES NOT TO SCHEDULE CIVIL JURY TRIALS AND THAT THE DIRECTIVE SHOULD BE READ ONLY AS A SUGGESTION IN A MEMORANDUM SENT THIS WEEK TO FELLOW JUDGES SITTING IN THE EASTERN DISTRICT OF NEW YORK WHICH COVERS BROOKLYN QUEENS AND LONG ISLAND JUDGE WEINSTEIN SAID HE'LL GIVE LITIGANTS BEFORE HIM THE OPTION OF GOING TO TRIAL USING JURORS WHO VOLUNTEER TO FORGO THE USUAL 40ADAY FEE JUDGE WEINSTEIN SAID THAT THE USE OF VOLUNTEER JURORS TYPICALLY FROWNED UPON BY THE COURTS AND CONGRESS WOULD PASS LEGAL AND CONSTITUTIONAL MUSTER IF ALL THE LITIGANTS AGREE TO IT IN HIS MEMORANDUM JUDGE WEINSTEIN ALSO CITES A DECISION BY THE US COURT OF APPEALS IN SAN FRANCISCO IN 1986 WHEN THE POSSIBILITY OF CANCELING CIVIL JURY TRIALS BECAUSE OF LACK OF MONEY LAST AROSE THAT APPEALS COURT FOUND THAT SUCH A CANCELLATION WOULD BE UNCONSTITUTIONAL IN THE MEANTIME IT LOOKS VERY UNLIKELY THAT THERE WILL BE MORE MONEY FOR JURORS BY THE MAY 12 DEADLINE CONGRESS WHICH IS TAKING ITS SPRING RECESS IS NOT EXPECTED TO CONSIDER EMERGENCY SPENDING BILLS UNTIL THE CONFLICT OVER PRESIDENT CLINTON'S 16 BILLION STIMULUS PACKAGE IS RESOLVED CRIMINAL TRIALS ALSO ARE THREATENED AS THE BUDGET FOR COURTAPPOINTED DEFENSE LAWYERS IS EXPECTED TO RUN OUT IN MAY A SPOKESMAN FOR THE ADMINISTRATIVE OFFICE DID NOT RETURN PHONE CALLS SEEKING COMMENT THE US APPEALS COURT IN SAN FRANCISCO UPHELD THE CONSTITUTIONALITY OF A TWOYEAROLD FEDERAL LAW THAT GAVE PLAINTIFFS IN SECURITIES LITIGATION MORE TIME TO FILE INVESTMENT FRAUD COMPLAINTS CONGRESS PASSED THE LAW TO KEEP ALIVE SECURITIES CASES PARTICULARLY THOSE RELATED TO SAVINGSANDLOAN FAILURES PENDING AT THE TIME OF THE SUPREME COURT'S JUNE 1991 RULING IN LAMPF VS GILBERTSON THE HIGH COURT RULED IN LAMPF THAT ALL SECURITIES FRAUD CASES MUST BE FILED NO LATER THAN THREE YEARS AFTER THE ALLEGED FRAUD TOOK PLACE OR ONE YEAR AFTER IT WAS DISCOVERED IT ALSO SAID THE DECISION SHOULD APPLY RETROACTIVELY SOME CORPORATE DEFENSE ATTORNEYS HAVE ARGUED THAT THE LAW PROTECTING THE CASES FILED BEFORE JUNE 1991 IS AN UNCONSTITUTIONAL INTERFERENCE BY CONGRESS INTO THE JUDICIARY BUT THAT ARGUMENT HAS GAINED LITTLE SUPPORT THE SAN FRANCISCO APPEALS COURT RULING IS AT LEAST THE SECOND TO FIND THE SOCALLED LAMPF LAW CONSTITUTIONAL THE APPEALS COURT REINSTATED THREE SECURITIES LAWSUITS THAT HAD BEEN DISMISSED BY DISTRICT COURTS IN THE NINTH CIRCUIT THE RULING IS PARTICULARLY SIGNIFICANT BECAUSE THE FIRST JUDGE TO ACCEPT THE ARGUMENT THAT THE SOCALLED LAMPF LAW IS UNCONSTITUTIONAL US DISTRICT JUDGE CHARLES LEGGE SITS IN SAN FRANCISCO AMONG THOSE CASES REINSTATED WAS ONE DISMISSED BY JUDGE LEGGE JULIUS GRAY VS FIRST WINTHROP CORP US COURT OF APPEALS SAN FRANCISCO 90CV02600 IT'S OKAY TO DRINK TO THE DODGERS AGAIN IN BROOKLYN THIRTYFIVE YEARS AFTER THE BROOKLYN DODGERS MOVED TO LOS ANGELES A FEDERAL JUDGE SAYS THE TEAM NO LONGER HAS EXCLUSIVE RIGHTS TO THE BROOKLYN DODGER TRADEMARK US DISTRICT JUDGE CONSTANCE BAKER MOTLEY REFUSED TO PROHIBIT A FIVEYEAROLD BROOKLYN SPORTS BAR FROM CALLING ITSELF THE BROOKLYN DODGER SPORTS BAR & RESTAURANT THE LOS ANGELES DODGERS INC AND MAJOR LEAGUE BASEBALL PROPERTIES INC HAD CLAIMED THAT THE BAR WAS INFRINGING ON THEIR RIGHT TO THE OLD NAME JUDGE MOTLEY RULED THAT THE LA DODGERS LOST THEIR RIGHT TO CHALLENGE THE USE OF THE BROOKLYN DODGERS NAME AT LEAST BY A RESTAURANT IN BROOKLYN BECAUSE OF THE 1958 MOVE WHICH SHE CALLED ONE OF THE MOST NOTORIOUS ABANDONMENTS IN THE HISTORY OF SPORTS HER OPINION HOWEVER PERMITS THE LA DODGERS TO HOLD ON TO ITS EXCLUSIVE RIGHT TO THE BROOKLYN DODGER TRADEMARK FOR SPORTS MEMORABILIA WE'RE OBVIOUSLY DISAPPOINTED AND STRONGLY DISAGREE WITH THE NARROW ISSUE CONCERNING THE BAR SAID ROBERT J KHEEL OF WILLKIE FARR & GALLAGHER WHICH REPRESENTED THE DODGERS AND MAJOR LEAGUE BASEBALL PROPERTIES MR KHEEL ADDED THAT HIS CLIENTS ARE PLEASED THAT THEY ARE HOLDING ON TO THE BROOKLYN DODGER TRADEMARK FOR USE ON SPORTS PRODUCTS HE SAID HIS CLIENTS ARE CONSIDERING AN APPEAL MAJOR LEAGUE BASEBALL PROPERTIES INC VS SED NON OLET DENARIUS LTD US DISTRICT COURT NEW YORK 90CV2170 OPERATION RESCUE AND RELATED ANTIABORTION PROTESTERS WERE SUBJECTED TO A BROAD PERMANENT INJUCTION RESTRICTING THEIR PROTESTS AND CONTACT WITH STAFF AND PATIENTS AT A MELBOURNE FLA CLINIC THE INJUNCTION APPEARS TO BE THE FIRST COURT RULING CITING ANTISTALKING LAWS IN LIMITING ANTIABORTION PROTEST ACTIVITY JUDGE ROBERT MCGREGOR OF SEMINOLE COUNTY CIRCUIT COURT ESTABLISHED A 36FOOT BUFFER ZONE AROUND THE CLINIC BARRED CHANTING OR LOUD NOISES BEFORE NOON WHEN SURGERIES ARE SCHEDULED AND BARRED PROTESTERS FROM HARASSING PEOPLE WITHIN 300 FEET OF THE CLINIC HE ALSO SET 300FOOT BUFFER ZONES AROUND THE HOMES OF CLINIC STAFF KEITH TUCCI EXECUTIVE DIRECTOR OF OPERATION RESCUE SAID WE'RE GOING TO RIP UP THE INJUCTION ON THE SIDEWALK IN FRONT OF THE PLACE HE SAID THE ORDER WOULD BE APPEALED ON FIRST AMENDMENT GROUNDS AND VOWED FURTHER PICKETS AT THE AWARE WOMAN CLINIC IN MELBOURNE JONATHAN M MOSES IN NEW YORK CONTRIBUTED TO THIS COLUMN 9304090086 930409 NEW YORK JUDGE WON'T BE CANDIDATE FOR HIGH COURT WASHINGTON JUDITH KAYE CHIEF JUDGE OF NEW YORK STATE'S TOP COURT TOOK HERSELF OUT OF THE RUNNING FOR A SEAT ON THE US SUPREME COURT JUDGE KAYE MADE THE ANNOUNCEMENT A DAY AFTER NEW YORK GOV MARIO CUOMO SAID HE DIDN'T WANT TO BE CONSIDERED FOR THE HIGH COURT SEAT OF RETIRING JUSTICE BYRON WHITE IN A LETTER WEDNESDAY TO PRESIDENT CLINTON THE GOVERNOR RECOMMENDED JUDGE KAYE FOR THE POSITION JUDGE KAYE WHO BECAME CHIEF JUDGE LAST MONTH SAID SHE WANTED TO STAY WITH THE NEW YORK COURT OF APPEALS I WANT TO MAKE ABSOLUTELY CLEAR THAT I REGARD MY NEW ROLE NOT ONLY AS A COMMITMENT AND RESPONSIBILITY BUT ALSO AS A MAGNIFICENT OPPORTUNITY SHE SAID 9304090085 930409 SOME SEARS CATALOG STORES TO BE CONVERTED TO RETAIL HOFFMAN ESTATES ILL SEARS ROEBUCK & CO SAID IT PLANS TO CONVERT 350 OF ITS 2000 FORMER CATALOG STORES INTO SMALL RETAIL STORES THAT WILL SELL APPLIANCES ELECTRONICS AND LAWN AND GARDEN EQUIPMENT SEARS SAID THE DECISION FOLLOWS A TWOMONTH STUDY COMMENCED AFTER ITS JAN 25 ANNOUNCEMENT THAT THE BIG RETAILER WOULD CLOSE ITS 35 BILLION US CATALOG OPERATION INCLUDING MOST OF THE SMALL CATALOG STORES WHICH TYPICALLY ARE IN RURAL AREAS THE STORES SELECTED FOR CONVERSION WERE PROFITABLE AS CATALOG OPERATIONS SEARS SAID AS RETAIL OUTLETS THE STORES WILL STOCK AN INVENTORY OF POPULARSELLING PRODUCTS BUT ALSO RETAIN SOME OF THEIR FORMER CATALOG FUNCTION BY ALLOWING CUSTOMERS TO ORDER OTHER PRODUCTS SEARS SAID IT ISN'T PLANNING TO SELL APPAREL THROUGH THE STORES THE STORES WILL HAVE 3000 TO 5000 SQUARE FEET OF SELLING SPACE AND WILL BE OWNED BY INDEPENDENT DEALERS WHO WILL OPERATE ON A COMMISSION FOR MERCHANDISE SOLD SEARS SAID SEARS EXPECTS EACH STORE TO GENERATE ABOUT 1 MILLION IN ANNUAL REVENUE WHICH WOULD RESULT IN A COMBINED ANNUAL REVENUE FOR THE 350 STORES EQUAL TO 10 OF THE SALES VOLUME OF THE COMPANY'S FORMER US CATALOG OPERATION 9304090084 930409 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 DOMTAR INC 175 MILLION OF NOTES DUE APRIL 15 2001 PRICED AT PAR TO YIELD 12 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED THROUGH DEALERS LED BY SALOMON BROTHERS INC THE NOTES WERE ORIGINALLY PLANNED TO BE NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED BA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POORS CORP JOSEPH E SEAGRAM & SONS INC 200 MILLION OF DEBENTURES DUE APRIL 15 2008 WAS PRICED AT PAR TO YIELD 7 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 101 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH GOLDMAN SACHS & CO JOSEPH E SEAGRAM IS A US UNIT OF CANADABASED SEAGRAM CO MILWAUKEE COUNTY WIS 549 MILLION SERIES 1993A GENERAL OBLIGATION CORPORATE PURPOSE BONDS APPARENTLY WON BY A GOLDMAN SACHS GROUP THE BONDS ARE BELIEVED TO HAVE BEEN WON WITH A BID SETTING THE TRUE INTEREST COST AT 5361 YIELDS RANGE FROM 285 IN 1994 TO 58 IN 2012 MOODY'S HAS RATED THE ISSUE SINGLEA1 AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING NFO RESEARCH INC INITIAL 2122000 COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS MANAGED BY WILLIAM BLAIR & CO AND FURMAN SELZ INC STARTER CORP INITIAL 775 MILLION COMMON SHARES PRICED AT 2150 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WHEELINGPITTSBURGH CORP 10 MILLION COMMON SHARES PRICED AT 8625 EACH OF THE SHARES OFFERED 7 MILLION ARE BEING SOLD BY THE COMPANY AND 3 MILLION BY TWO PRINCIPAL STOCKHOLDERS THE COMPANY SAID 85 MILLION SHARES WERE OFFERED DOMESTICALLY WITH SALOMON BROTHERS INC AND MERRILL LYNCH & CO AS LEAD UNDERWRITERS IT SAID 15 MILLION SHARES WERE SOLD THROUGH A CONCURRENT INTERNATIONAL OFFERING WITH SALOMON BROTHERS INTERNATIONAL LTD AND MERRILL LYNCH INTERNATIONAL LTD AS LEAD MANAGERS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF GOLD REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH THE OFFERING SERIES GOLD 1517 IS BACKED BY FREDDIE MAC'S 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 815 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF GOLD REMIC SECURITIES OFFERED BY KIDDER PEABODY THE OFFERING SERIES GOLD 1518 IS BACKED BY FREDDIE MAC'S 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL HOME LOAN MORTGAGE CORP 11906 MILLION OF REMIC SECURITIES OFFERED BY GOLDMAN SACHS THE OFFERING SERIES GOLD G011 IS BACKED BY GINNIE MAE 9 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 95 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2666 YEARS THIRD MEXICAN ACCEPTANCE CORP SPECIALPURPOSE VEHICLE 75 MILLION OF EUROBONDS DUE MARCH 15 1998 SECURED ON A PORTFOLIO OF MORTGAGE LOANS FOR HOLIDAY HOMES IN MEXICO VIA KIDDER PEABODY INTERNATIONAL LTD SPLIT INTO 50 MILLION OF CLASS A NOTES AND 25 MILLION CLASS B NOTES BACKED BY US DOLLARDENOMINATED RECEIVABLES SECURED BY PROPERTY LOCATED IN MEXICO WITH MORTGAGES WHICH HAVE FIVE YEARS OR LESS TO RUN CLASS A NOTES GUARANTEED BY GROUPO SIDEK SA DE CV AND NACIONAL FINANCIERA SA COLLATERALIZED AT RATIO OF 151 CLASS B NOTES GUARANTEED BY GROUPO SIDEK AND GROUPO SIDUR SA DE CV COLLATERALIZED AT RATIO OF 11 INTEREST PAID SEMIANNUALLY COUPON FOR CLASS A NOTES 737 FOR CLASS B NOTES 105 ISSUE PRICE PAR FEES NOT DISCLOSED NYK INTERNATIONAL PLC JAPAN PARENT 154 MILLION FINNISH MARKKA OF 86 EUROBONDS DUE APRIL 20 1994 AT ISSUE PRICE PAR VIA LTCB INTERNATIONAL KEEPWELL AGREEMENT FROM PARENT NIPPON YUSEN KABUSHIKI KAISHA FEES NOT DISCLOSED 9304090083 930409 BUSINESS BRIEF SEQUA UNIT SUSPENDS JET ENGINE REPAIR AFTER PAYING 5 MILLION IN FAA INQUIRY NEW YORK SEQUA CORP SAID ONE OF ITS UNITS SUSPENDED JET ENGINE REPAIR WORK AND MADE A 5 MILLION REMEDIAL PAYMENT TO THE FEDERAL AVIATION ADMINISTRATION FOLLOWING AN INQUIRY ABOUT THE QUALITY OF REPAIRS SEQUA ALSO SAID THE FAA ACTION WILL DAMP RESULTS EVEN MORE THAN ORIGINALLY PROJECTED AND THE COMPANY'S FINANCING ARRANGEMENTS COULD ALSO BE HURT BY THE FALLOUT FROM THE INVESTIGATION SEQUA'S SHARES TOOK FURTHER POUNDING AFTER THE ANNOUNCEMENT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ITS CLASS A SHARES CLOSED AT 25875 DOWN 225 AND ITS CLASS B SHARES CLOSED AT 2650 DOWN 275 THE SHARES WHICH TRADED ABOVE 40 LAST OCTOBER HAVE FALLEN SINCE IT ANNOUNCED IN NOVEMBER THAT IT ALSO WAS BEING INVESTIGATED BY THE JUSTICE DEPARTMENT THE FEDERAL BUREAU OF INVESTIGATION AND THE TRANSPORTATION DEPARTMENT THE STOCK PRICE DECLINE ALSO IS PARTLY ATTRIBUTABLE TO THE SLUMP IN THE AEROSPACE INDUSTRY THE COMPANY SAID THE FAA SETTLEMENT IS SEPARATE FROM THE OTHER FEDERAL INVESTIGATIONS WHICH ARE CONTINUING THE INVESTIGATIONS APPARENTLY ALSO CENTER ON JET ENGINE COMPONENT REPAIR WORK AT SEQUA'S CHROMALLOY RESEARCH & TECHNOLOGY UNIT IN ORANGEBURG NY CHROMALLOY PRIMARILY REPAIRS UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY JET ENGINES WE'RE TRYING TO ASSESS HOW WE COULD PROVIDE FOR PROBLEMS THAT MIGHT ARISE OUT OF THIS SAID A PRATT & WHITNEY SPOKESMAN CHROMALLOY USUALLY CONTRACTS DIRECTLY WITH OUR BUYERS FOR REPAIR WORK BUT WE MAY FIND OURSELVES TRYING TO STEP UP OUR OWN REPAIR EFFORTS OR STARTING A PARTS POOL TO HELP OUR CUSTOMERS DEAL WITH ANY PROLONGED SUSPENSION OF REPAIR WORK BY CHROMALLOY UNDER TERMS OF THE FAA AGREEMENT CHROMALLOY RESEARCH & TECHNOLOGY A UNIT OF SEQUA'S CHROMALLOY GAS TURBINE SUBSIDIARY WOULD SUSPEND JET ENGINE COMPONENT REPAIR WORK UNTIL IT COMPLETED A JOINT REVIEW WITH THE FAA TO ENSURE THAT FAA AND CUSTOMER REQUIREMENTS ARE MET THE SUSPENSION OF ACTIVITIES DOESN'T AFFECT CHROMALLOY RESEARCH & TECHNOLOGY'S NEWENGINE COMPONENT BUSINESS SEQUA ALREADY REPORTED THAT CHROMALLOY GAS TURBINE WHICH MADE UP 46 OF SEQUA'S 188 BILLION IN 1992 REVENUE WOULD REPORT PROFIT 50 LOWER FOR THE FIRST QUARTER EVEN WITH ITS LARGEST UNIT CHROMALLOY RESEARCH & TECHNOLOGY IN FULL OPERATION THE SHUTDOWN OF THE CHROMALLOY RESEARCH & TECHNOLOGY FACILITY WILL PUSH EARNINGS STILL LOWER IN THE SECOND QUARTER A COMPANY SPOKESWOMAN SAID THE SPOKESWOMAN SAID THE COMPANY COULD NOT ESTIMATE HOW LONG THE FAA REVIEW AND SUSPENSION WOULD BE IN EFFECT IN THE 1992 FIRST QUARTER SEQUA REPORTED NET INCOME OF 40 MILLION OR 34 CENTS A SHARE ON REVENUE OF 4609 MILLION IN THE SECOND QUARTER SEQUA REPORTED NET OF 56 MILLION OR 50 CENTS A SHARE ON REVENUE OF 4744 MILLION SEQUA ALSO IS A MAKER OF SPECIALTY INSTRUMENTS AND CHEMICALS 9304090082 930409 EXENGINEER ADMITS FRAUD AT MECHANICAL TECHNOLOGY SUBSIDIARY TRENTON NJ FEDERAL PROSECUTORS SAID A FORMER ENGINEER FOR A MECHANICAL TECHNOLOGY INC SUBSIDIARY PLEADED GUILTY FOR HIS ROLE IN THE SUBSIDIARY'S FRAUD IN A DEFENSE DEPARTMENT CONTRACT THE US ATTORNEY'S OFFICE SAID PAUL KERTIS 35 YEARS OLD OF BARNEGAT NJ PLEADED GUILTY TO ONE COUNT OF CONSPIRING TO DEFRAUD THE GOVERNMENT IN THE 48 MILLION CONTRACT THE SUBSIDIARY UNITED TELECONTROL ELECTRONICS INC RECEIVED THE CONTRACT TO PRODUCE MAVERICK MISSILE LAUNCHERS FEDERAL PROSECUTORS HAD CHARGED IT WITH DELIVERING DEFECTIVE LAUNCHERS AND UNDERMINING GOVERNMENTMANDATED EFFORTS AT QUALITY CONTROL THE SUBSIDIARY PLEADED GUILTY MONDAY AND FACES A MAXIMUM SENTENCE OF 1 MILLION IN FINES FIVE YEARS' PROBATION AND RESTITUTION TO THE GOVERNMENT MR KERTIS FACES A MAXIMUM OF FIVE YEARS IN PRISON AND 250000 IN FINES HE COULDN'T BE REACHED FOR COMMENT THE US ATTORNEY'S OFFICE SAID THAT THE COMPANY BEGAN DELIVERING THE LAUNCHERS IN EARLY 1986 AND THAT BY 1987 THE AIR FORCE BEGAN EXPERIENCING FAILURES OF THE LAUNCHERS MECHANICAL TECHNOLOGY IN FEBRUARY ANNOUNCED A PLEA AGREEMENT THE UNIT HAD REACHED WITH FEDERAL PROSECUTORS IT SAID THEN THAT THE PROBLEMS UNDER INVESTIGATION BEGAN BEFORE IT HAD ACQUIRED UNITED TELECONTROL IN 1987 AND THAT IT WAS UNAWARE OF THE PROBLEMS UNTIL IT WAS NOTIFIED BY THE DEFENSE DEPARTMENT OF AN INVESTIGATION IT SAID IT HAS COOPERATED WITH FEDERAL AUTHORITIES AND HAS MADE CHANGES AT THE UNIT TO BRING IT INTO COMPLIANCE WITH DEFENSE DEPARTMENT REQUIREMENTS 9304090081 930409 MARKETING & MEDIA BIDDING TO BEGIN FOR MAXWELL UNITS MACMILLAN OAG BY PATRICK M REILLY AND MEG COX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A BIDDING WAR IS ABOUT TO ERUPT FOR SOME OF THE LAST PRIZED POSSESSIONS OF THE LATE ROBERT MAXWELL BUT INSIDERS SAY THE PERFORMANCE OF THE PROPERTIES HAS SLIPPED SIGNIFICANTLY A WIDE VARIETY OF COMPANIES ARE EXPECTED TO ENTER BIDS TODAY IN THE FIRST ROUND OF AN AUCTION OF MACMILLAN INC THE LARGE BOOK PUBLISHER AND OFFICIAL AIRLINE GUIDES INC WHICH PUBLISHES DOMESTIC AIRLINE TIMETABLES INTERESTED COMPANIES ARE SAID TO INCLUDE SUCH MEDIA HEAVYWEIGHTS AS PARAMOUNT COMMUNICATIONS INC HARCOURT GENERAL INC FORMERLY GENERAL CINEMA CORP WALT DISNEY CO KIII COMMUNICATIONS CORP AS WELL AS AN INVESTMENT GROUP LED BY US BILLIONAIRE ROBERT BASS INSIDERS WHO HAVE SEEN THE OFFERING DOCUMENT FOR MACMILLAN AND OFFICIAL AIRLINE GUIDES UNITS OF MAXWELL COMMUNICATION CORP SAID OPERATING PROFIT FOR THE TWO COMPANIES HAS SLIPPED TO ABOUT 80 MILLION IN THE 1993 FISCAL YEAR ENDED MARCH 31 FROM ABOUT 145 MILLION IN FISCAL YEAR 1991 MACMILLAN IS STILL CONSIDERED A PRIME PUBLISHING PROPERTY ESPECIALLY FOR ITS COLLEGE PUBLISHING BUSINESS IT ALSO INCLUDES A 50 SHARE IN A TEXTBOOK PUBLISHING JOINT VENTURE WITH MCGRAWHILL INC CALLED MACMILLAN/MCGRAWHILL SCHOOL PUBLISHING CO THE JOINT VENTURE GROUP'S OPERATING PROFIT IS SAID TO HAVE FALLEN TO 77 MILLION LAST YEAR FROM 112 MILLION IN 1991 DAVID SHAFFER THE CURRENT CHAIRMAN OF BOTH MACMILLAN AND OAG WOULDN'T COMMENT ON THE FINANCIAL INFORMATION NONE OF THE POTENTIAL BIDDERS WOULD COMMENT THE FIRST ROUND OF BIDDING WILL END TODAY AT 5 PM EDT BIDS ARE BEING SUBMITTED TO JP MORGAN & CO IN NEW YORK FINANCIAL ADVISER TO PRICE WATERHOUSE THE COURTAPPOINTED BANKRUPTCY ADMINISTRATOR OF THE MAXWELL COMMUNICATION COMPANIES MAXWELL COMMUNICATION HAS DEBTS AND TOTAL CLAIMS ESTIMATED AT BETWEEN 31 BILLION AND 36 BILLION AND IN A HIGHLY UNUSUAL SITUATION THE COMPANY IS IN BANKRUPTCYLAW PROCEEDINGS IN BOTH THE US AND THE UNITED KINGDOM JP MORGAN WOULDN'T COMMENT ON WHO IS BIDDING FOR THE PROPERTIES BUT MORGAN VICE PRESIDENT JOE DONOHUE SAID WE ARE PLEASED AT THE LEVEL OF INTEREST IN THESE ASSETS OUR ONLY OBJECTIVE IS TO GET MAXIMUM VALUE FOR CREDITORS WHILE MACMILLAN EXECUTIVES ARE PLEASED WITH THE LEVEL OF INTEREST THERE IS CONCERN ABOUT WHAT THE DETERIORATING RESULTS WILL DO TO THE LEVEL OF THE BIDS REGARDLESS TOP PUBLISHING COMPANIES ARE INTERESTED THIS IS IN SOME WAYS THE LAST GAME IN TOWN SAYS ONE TOP PUBLISHING EXECUTIVE IF YOU WANT TO BUY A NAMEBRAND PUBLISHER OF SUBSTANTIAL SIZE THIS IS IT HE ADDED THAT IF PRESIDENT CLINTON FOLLOWED THROUGH WITH INVESTMENTS IN EDUCATION THE 1990S MAY BE FAVORABLE FOR EDUCATIONAL PUBLISHERS ACCORDING TO THE OFFERING DOCUMENT BIDDERS HAVE THE OPTION OF BIDDING FOR ALL OF WHAT IS KNOWN IN COURT DOCUMENTS AS THE M&O GROUP MACMILLAN AND OAG OR FOR INDIVIDUAL COMPANIES MR MAXWELL ACQUIRED MACMILLAN FOR 26 BILLION IN 1988 AFTER A LONG BIDDING WAR IN LATE 1992 COURTAPPOINTED ADMINISTRATORS FOR MAXWELL COMMUNICATION REJECTED AN UNSOLICITED 12 BILLION BID FROM MR BASS'S GROUP FOR THE US BUSINESSES INCLUDING MACMILLAN INC THE BASS BID WAS BASED ON THE PRESUMPTION THAT THE PERFORMANCE OF MAXWELL'S US PROPERTIES HAD DETERIORATED SIGNIFICANTLY SINCE LAST SUMMER THE SECOND ROUND OF THE AUCTION IN WHICH THE NUMBER OF BIDDERS WILL BE NARROWED AND ALLOWED TO CONDUCT DUE DILIGENCE WILL CONCLUDE IN FOUR TO SIX WEEKS 9304090080 930409 INTERNATIONAL RUSSIAN AUTHORITIES QUERY US PAPER'S CORRESPONDENT MOSCOW THE SECURITY MINISTRY QUESTIONED A MOSCOW CORRESPONDENT FOR THE BALTIMORE SUN FOR FOUR HOURS AT LEFORTOVO PRISON PRESSING HIM FOR DETAILS ABOUT HOW HE OBTAINED A STORY ABOUT CHEMICALWEAPONS RESEARCH WILL ENGLUND SAID HE WAS QUESTIONED ABOUT WHO HAD HELPED HIM ARRANGE INTERVIEWS WITH SCIENTIST VIL MIRZAYANOV AND OTHERS FOR AN ARTICLE THAT APPEARED IN THE SUN IN SEPTEMBER AND WHETHER HIS SOURCES GAVE HIM ANY TECHNICAL INFORMATION THE ARTICLE FOCUSED ON CHEMICALWEAPONS RESEARCH IN THE SOVIET UNION IN 1991 PRIOR TO THE SOVIET BREAKUP MR ENGLUND LATER WROTE ABOUT CHEMICALWEAPONS RESEARCH IN RUSSIA AFTER THE DISSOLUTION OF THE USSR MR MIRZAYANOV IS UNDER INVESTIGATION ON CRIMINAL CHARGES OF REVEALING STATE SECRETS TO THE MEDIA MR ENGLUND SAID HE REFUSED TO ANSWER SUCH QUESTIONS BASED ON RUSSIAN LAWS PROTECTING THE CONFIDENTIALITY OF JOURNALISTS' SOURCES THIS WAS APPARENTLY THE FIRST TIME THE MINISTRY QUESTIONED A US REPORTER SINCE THE 1986 ARREST OF NICHOLAS DANILOFF OF US NEWS & WORLD REPORT WHO WAS ACCUSED OF RECEIVING STATE SECRETS THIS ISN'T ROUTINE SAID MR ENGLUND I GUESS THE WORD THAT PEOPLE USE IS THAT IT HAS A CHILLING EFFECT ON NEWSGATHERING AND I THINK EVERYBODY HAS TO BE AWARE OF THAT 9304090079 930409 TECHNOLOGY & HEALTH DETAILS UNVEILED ON BATTERY BUILT FOR ELECTRIC CAR BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL THE SECRET OF A BATTERY THAT IS ONE OF THE LEADING CANDIDATES TO POWER THE ELECTRIC CAR WAS REVEALED IN A REPORT PUBLISHED IN A LEADING SCIENTIFIC JOURNAL THE BATTERY IS THE SOCALLED OVONIC RECHARGEABLE STORAGE BATTERY WHICH ENERGY CONVERSION DEVICES INC OF TROY MICH IS DEVELOPING UNDER AN 185 MILLION CONTRACT FROM THE US ADVANCED BATTERY CONSORTIUM THE CONSORTIUM WAS SET UP BY THE US DEPARTMENT OF ENERGY THE BIG THREE AUTO MAKERS AND THE UTILITYSUPPORTED ELECTRIC POWER RESEARCH INSTITUTE TO PUT AS MUCH AS 260 MILLION INTO RESEARCH ON SEVERAL POTENTIAL BATTERIES FOR THE ELECTRIC CAR ENERGY CONVERSION HAS CLAIMED THAT ITS OVONIC BATTERY ALREADY HAS EXCEEDED THE GOALS SET BY THE CONSORTIUM BUT HAS KEPT THE KEY TECHNOLOGY OF THE BATTERY A PROPRIETARY SECRET THE BATTERY'S SECRET LIES IN ITS NEGATIVE ELECTRODE ACCORDING TO AN ARTICLE PUBLISHED IN THIS WEEK'S ISSUE OF THE JOURNAL SCIENCE BY ECD'S FOUNDING SCIENTIST STANFORD R OVSHINSKY AND TWO COLLEAGUES MICHAEL A FETCENKO OF THE ECD SUBSIDIARY THAT IS DEVELOPING THE BATTERY AND CHEMIST JOHN ROSS OF STANFORD UNIVERSITY A CONSULTANT IN CONTRAST TO MOST EXPERIMENTAL BATTERIES IN WHICH THE NEGATIVE ELECTRODE IS A PURE METAL LIKE CADMIUM ZINC OR IRON THE OVONIC BATTERY ELECTRODE IS AN ALLOY OF SEVERAL METALS SUCH AS VANADIUM TITANIUM ZIRCONIUM NICKEL AND CHROMIUM ACCORDING TO THE ARTICLE THE REPORT DESCRIBES THE ROLE OF EACH METAL IN THE ALLOY THE ATOMS OF THE ELECTRODE INSTEAD OF BEING ARRANGED IN AN ORDERLY CRYSTALLINE MATRIX AS IN MOST METAL ELECTRODES ARE IN A DELIBERATELY DISORDERED ARRAY A CHARACTERISTIC DESCRIBED AS AMORPHOUS MR OVSHINSKY A SELFEDUCATED SCIENTIST HAS BEEN A PIONEER IN THE DEVELOPMENT OF AMORPHOUS MATERIALS FOR ELECTRONIC USES SUCH AS SOLAR CELLS IN AN INTERVIEW MR OVSHINSKY SAID THE USE OF ATOMICALLY DISORDERED MATERIALS WAS A FUNDAMENTALLY DIFFERENT APPROACH TO BATTERIES HE SAID ECD HAD NEVER PUBLICIZED THE DETAILS OF THE ELECTRODES BUT WE THOUGHT WE SHOULD NOW REMOVE THE VEIL THE COMPANY HAS CLAIMED THE BATTERY CAN BE CHARGED IN AS LITTLE AS 15 MINUTES AND UNDERGO MORE THAN 1000 CHARGEDISCHARGE CYCLES FOR A LIFETIME OF 10 YEARS OR 100000 MILES THE CONSORTIUM'S GOALS ARE A RECHARGE TIME OF LESS THAN SIX HOURS A LIFETIME OF 600 CHARGERECHARGE CYCLES EQUAL TO A LIFETIME OF FIVE YEARS OR 20000 MILES 9304090078 930409 CHICAGO LAWYER SETTLES INSIDERTRADING CHARGE IN SALE OF MINNETONKA WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACCUSED AN ILLINOIS LAWYER OF INSIDER TRADING ON MINNETONKA CORP'S INTENTION TO SEEK A BUYER FOR THE COMPANY IN 1989 DEAN A OLDS OF CHICAGO SETTLED THE CHARGES WITHOUT ADMITTING OR DENYING WRONGDOING IN A COMPLAINT FILED IN FEDERAL COURT HERE THE SEC SAID MR OLDS BOUGHT 6000 SHARES OF MINNETONKA SHORTLY AFTER HE WAS HIRED BY THE COMPANY TO ADVISE ITS MANAGEMENT ABOUT A POSSIBLE SALE THE AGENCY ALLEGED MR OLDS SOLD THE STOCK FOR A 40909 PROFIT AFTER THE COMPANY ANNOUNCED IT WAS EXPLORING ALTERNATIVES AVAILABLE TO MAXIMIZE VALUE FOR ITS SHAREHOLDERS INCLUDING A POSSIBLE SALE OF THE COMPANY MR OLDS AGREED TO GIVE UP HIS PROFIT AND PAY A SEPARATE PENALTY OF 40909 MINNETONKA BASED IN BLOOMINGTON MINN WAS PURCHASED LATER IN 1989 BY A UNIT OF UNILEVER NV OF THE NETHERLANDS 9304090077 930409 WHO'S NEWS BARCLAYS LENDING OFFICER LEAVES IN STAFF SHAKEUP A WALL STREET JOURNAL NEWS ROUNDUP A KEY LENDING OFFICER AT BARCLAYS BANK PLC IS LEAVING AS BRITAIN'S LARGEST BANK SCRAMBLES TO DEAL WITH ITS TROUBLED UK REAL ESTATE AND CORPORATE DEBT PORTFOLIO MARK DEVERELL WHO HAS BEEN HEAD OF RISK MANAGEMENT SINCE 1989 WILL DEPART NEXT MONTH A BARCLAYS SPOKESWOMAN SAID THE LONDON BANK'S CENTRAL ADVANCES DEPARTMENT WHICH HAD BEEN HEADED BY MR DEVERELL IS TO BE ABOLISHED AS PART OF A COMPLEX SHAKEUP AT THE BANK HOWEVER THE SPOKESWOMAN DISPUTED A REPORT IN THURSDAY'S FINANCIAL TIMES THAT SAID MR DEVERELL'S DEPARTMENT WAS RESPONSIBLE FOR APPROVING MANY OF THE SOURED LOANS THAT CONTRIBUTED TO THE COMPANY'S 242 MILLION 366 MILLION PRETAX LOSS IN 1992 THE PROBLEM WAS THAT THE WHOLE SYSTEM HAD HOLES IN IT A SPOKESWOMAN SAID WE'RE NOT BREAKING IT MR DEVERELL'S GROUP UP AS PUNISHMENT FOR THE PAST SHE ADDED THAT MOST OF MR DEVERELL'S DUTIES WILL BE TAKEN OVER BY ALAN BROWN WHO WILL ASSUME THE NEW POST OF DIRECTOR OF GROUP CREDIT POLICY HE FORMERLY WAS BARCLAYS' CHIEF EXECUTIVE IN JAPAN THE CHANGES WILL ENSURE THAT BARCLAYS' LENDING IS BALANCED AND NOT OVEREXPOSED TO RISK THE BANK SAID FINALLY EACH LOAN IN EXCESS OF 5 MILLION WILL BE OVERSEEN BY A SINGLE EXECUTIVE 9304090076 930409 WHO'S NEWS AIG DISCLOSES SOSIN HAS RESIGNED AS CEO OF TRADING DIVISION NEW YORK HOWARD B SOSIN 42 YEARS OLD CHIEF EXECUTIVE OFFICER OF AMERICAN INTERNATIONAL GROUP'S FINANCIAL PRODUCTS UNIT HAS DECIDED TO RESIGN THE FIRM DISCLOSED IN ITS ANNUAL REPORT MR SOSIN USED THE INSURER'S TRIPLEA CREDIT RATING TO BUILD A FORMIDABLE 135MEMBER DERIVATIVES TRADING UNIT OVER THE PAST FIVE YEARS THE PARTING IS NOT FRIENDLY PEOPLE FAMILIAR WITH DISCUSSIONS BETWEEN AIG AND MR SOSIN SAY THAT TOP MANAGEMENT RECENTLY RESTRICTED THE UNIT'S ACTIVITIES ONE OF THE UNIT'S SPECIALTIES IS LONGTERM SWAPS AND GUARANTEED INVESTMENT CONTRACTS WITH MUNICIPALITIES AT TIMES THESE TRADES CAN BE RISKY BECAUSE THEY CONTAIN VOLATILE OPTIONLIKE FEATURES WHERE A MUNICIPALITY CAN BREAK THE CONTRACT AT ANY TIME DERIVATIVES PLAYERS SAY EDWARD MATTHEWS VICE CHAIRMAN OF FINANCE AT AIG SAYS THE UNIT PIONEERED THE MUNICIPAL DEALS THERE IS NOTHING RISKY ABOUT AIG'S TRADES HE SAYS AIG FINANCIAL SERVICES WHICH COMPRISES EIGHT UNITS REPORTED OPERATING PROFIT OF 3464 MILLION FOR FISCAL 1992 ITS EARNINGS ACCOUNTED FOR AS MUCH AS 40 OF THAT ACCORDING TO AIG MR SOSIN'S COMPENSATION IS BELIEVED TO HAVE BEEN TIED TO THE VALUE OF BUSINESS THE UNIT PRODUCED DERIVATIVES PLAYERS SAY AIG DECLINED TO COMMENT 9304090075 930409 MANAGEMENT SECRET WEAPON USED IN SETTING PAY PACKAGES BY JULIE AMPARANO LOPEZ STAFF REPORTER OF THE WALL STREET JOURNAL MORE CORPORATE CHIEFTAINS ARE PULLING OUT A SECRET WEAPON WHEN THEY NEGOTIATE COMPENSATION JOSEPH BACHELDER IN THE PAST 10 YEARS MR BACHELDER HAS BEEN CALLED ON TO HELP HUNDREDS OF CHIEF EXECUTIVE OFFICERS AND OTHER SENIOR MANAGERS NEGOTIATE HANDSOME PAY PACKAGES WHEN THEY MOVE TO NEW JOBS OR THINK THEY DESERVE A RAISE AS PAY DEALS BECOME MORE COMPLICATED THE 60YEAROLD NEW YORK ATTORNEY FOUNDER OF A LAW FIRM THAT BEARS HIS NAME FINDS HIS HANDS FULL EVEN THOUGH HE CHARGES 475 AN HOUR HE HAS REPRESENTED SUCH POWER FIGURES AS APPLE COMPUTER INC CHAIRMAN JOHN SCULLEY AND ALLIEDSIGNAL INC CHAIRMAN LAWRENCE BOSSIDY AS WELL AS THE NEW CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP LOUIS V GERSTNER JR THE LEFTHAND CORNER OF MR BACHELDER'S DESK IS PILED NEATLY WITH PAPERWORK FOR 15 PENDING DEALS THE ATTORNEY SAYS HIS PRACTICE IS GROWING ABOUT 25 A YEAR THE FIRM WHICH HAS SIX LAWYERS IS UNUSUAL BECAUSE IT CONCENTRATES ON SENIOR MANAGEMENT COMPENSATION AND RELATED ISSUES BUT OTHER FIRMS WITH COMPENSATION DIVISIONS SAY THESE PRACTICES ALSO ARE BOOMING ONE REASON IS THAT EXECUTIVES OFTEN NEED HELP DECIPHERING AND KEEPING PACE WITH RAPIDLY CHANGING RULES IN TAX CORPORATE AND SECURITIES LAWS AND MANY HAVE FOUND THAT USING A LAWYER AS A GOBETWEEN IN PAY DISCUSSIONS CAN HELP THEM SAVE FACE AND AVOID ACRIMONIOUS DISCUSSIONS LAWYERS MAKE THE TRANSITION EASIER EXPLAINS THE CEO OF A HOTEL COMPANY WHO USED MR BACHELDER'S SERVICES YOU DON'T HAVE ILL FEELINGS OVER PAY NEGOTIATIONS GENERALLY EXECUTIVES PAY THE TAB BUT SOMETIMES COMPANIES PAY MR BACHELDER TO REPRESENT THEIR INTERESTS AND OCCASIONALLY A COMPANY HIRES MR BACHELDER TO WORK ON BEHALF OF THE RECRUITS SUCH COMPANIES BELIEVE THEY WILL HAVE BETTER LUCK SIGNING SOMEONE IF THE PAY PACKAGE REPRESENTS THE CANDIDATE'S BEST INTERESTS IBM HIRED MR BACHELDER TO WORK ON COMPENSATION FOR MR GERSTNER MR BACHELDER IS IN SUCH DEMAND THAT HE SOMETIMES REPRESENTS MORE THAN ONE EXECUTIVE VYING FOR A PARTICULAR JOB IN THE IBM SEARCH FOR INSTANCE HE GAVE COMPENSATION ADVICE TO AT LEAST ONE OTHER CANDIDATE BEFORE PREPARING MR GERSTNER'S COMPENSATION PACKAGE MR BACHELDER WOULDN'T GIVE DETAILS BUT SOURCES CLOSE TO THE SEARCH SAY HE AIDED MR BOSSIDY OF ALLIEDSIGNAL AN EARLY CONTENDER FOR THE JOB TO AVOID ANY POSSIBLE CONFLICTS OF INTEREST THE LAWYER SAYS HE ONLY WORKS ONE DEAL AT TIME IF THE CANDIDATE BOWS OUT HE SAYS HE IS THEN FREE TO CRUNCH COMPENSATION EQUATIONS FOR ANOTHER JOBSEEKER HE'S A DEALMAKER AND HE'S VERY GOOD AT IT EXPLAINS NEW YORK LAWYER STEPHEN C CURLEY WHO HAS SAT ON THE OPPOSITE SIDE OF THE NEGOTIATIONS TABLE HE GETS WHAT HIS CLIENTS WANT A KEY TO THE BUSINESS IS TO TAILOR THE PAY PACKAGE TO THE EXECUTIVE'S CIRCUMSTANCES AND EVEN PERSONALITY FOR INSTANCE MR BACHELDER SAYS HE HAS FOUND THAT WALL STREET EXECUTIVES TEND TO FOCUS MORE THAN MOST ON THE INSTANT GRATIFICATION OF SHORTTERM RESULTS BIG SALARIES OTHERS ARE MORE CONCERNED WITH THE TRAPPINGS OF THE JOB PERQUISITES TITLES AUTOMOBILES OLDER EXECUTIVES PARTICULARLY THOSE WITH LONG TENURE AT ONE COMPANY OFTEN LOOK FOR PENSION GUARANTEES SOME WANT IT ALL MR GERSTNER THE FORMER RJR NABISCO HOLDINGS CORP CHAIRMAN RECENTLY NAMED IBM CHIEF WANTED A PAY PACKAGE THAT FOCUSED ON LONGTERM REWARDS TIED TO THE INTERESTS OF SHAREHOLDERS MR BACHELDER SAYS THE LAWYER SAYS MR GERSTNER'S ANNUAL SALARY AT IBM WILL BE ESSENTIALLY THE SAME AS HIS PAY AT RJR NABISCO SO HE DEVELOPED A PACKAGE THAT AMONG OTHER THINGS INCLUDES POTENTIALLY LUCRATIVE STOCK OPTIONS AND A 5 MILLION PAYMENT FOR BENEFITS MR GERSTNER FORFEITED WHEN HE LEFT RJR THIS DEAL WAS A RELATIVELY SIMPLE ONE SAYS MR BACHELDER WHO HAD NEGOTIATED A MORE COMPLICATED PAY PACKAGE FOR MR GERSTNER WHEN HE TOOK RJR NABISCO'S TOP JOB IBM AND MR GERSTNER BOTH WERE LOOKING FOR AN APPROPRIATE RESOLUTION MR BACHELDER SAYS DEPENDING ON PERSONALITIES NEGOTIATIONS CAN DEADLOCK OVER SUCH ISSUES AS A SINGLE TERM IN THE CONTRACT MR BACHELDER RECALLS ONE EXECUTIVE WHO WAS UPSET OVER THE WORDS WILLFUL MISCONDUCT IN HIS CONTRACT THE LAWYER SAYS THE EXECUTIVE WANTED A MORE DETAILED DEFINITION OF THE TERM USED IN TERMINATION PROCEEDINGS TO ENSURE THAT HE REMAINED WITHIN COMPANY BOUNDS MR BACHELDER RESOLVED THE PROBLEM BY USING A DEFINITION FROM BLACK'S LAW DICTIONARY WHAT'S IMPORTANT TO ONE PERSON ISN'T SO WITH ANOTHER MR BACHELDER EXPLAINS I LISTEN A LOT AND THEN TRY TO COME UP WITH SOMETHING BOTH SIDES CAN LIVE WITH MR BACHELDER ONCE NEGOTIATED A PACT THAT ALLOWED AN EXECUTIVE TO CONTINUE PROFITING FROM HIS PREVIOUS COMPANY THE EXECUTIVE WAS RELUCTANT TO LEAVE BECAUSE HE EXPECTED THE FIRM'S STOCK TO SOAR SOON THE NEW COMPANY AGREED TO COMPENSATE HIM FOR SUCH AN INCREASE DEALS LIKE THIS REQUIRE WHEELING AND DEALING AND SOME NEGOTIATIONS TAKE LONGER THAN OTHERS MR BACHELDER FORGED A PAY DEAL BETWEEN MR SCULLEY AND APPLE COMPUTER IN A WEEK THE NEGOTIATIONS WITH IBM TOOK TWO WEEKS BUT ANOTHER DEAL DRAGGED ON FOR NEARLY A YEAR AS THE EXECUTIVE AND COMPANY REPEATEDLY ENDED AND RESUMED TALKS THAT ONE TESTED MY PATIENCE MR BACHELDER SAYS WE FINALLY STRUCK A DEAL THOUGH 9304090074 930408 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 9304090073 930409 AUTO MAKERS DEALERS SETTLE NEW YORK CASE OVER ADS ON LEASING NEW YORK THE NEW YORK ATTORNEY GENERAL'S OFFICE SAID SIX AUTO MANUFACTURERS AND DEALER ASSOCIATIONS CHARGED WITH MISLEADING AND DECEPTIVE LEASING ADVERTISEMENTS HAVE AGREED TO CHANGE THEIR AD CAMPAIGNS NEW YORK ATTORNEY GENERAL ROBERT ABRAMS'S OFFICE TOOK AIM LAST YEAR AT LEASING ADVERTISEMENTS RUN BY 15 AUTO MAKERS THE ADS UNDER INVESTIGATION TOUTED LOW MONTHLY PAYMENTS HOWEVER BURIED IN THE ADS WAS THE FACT THAT THE LOW PAYMENTS ARE AVAILABLE ONLY TO CUSTOMERS WHO MAKE BIG UPFRONT OUTLAYS MR ABRAMS SAID CONSUMERS OFTEN FAIL TO READ THE SMALL TYPE NOTICE AND THEN ARE UNAWARE THAT THE SMALL TYPE CONTRADICTS THE MAIN MESSAGE OF THE AD MR ABRAMS SAID WHEN YOU FACTOR IN THE DOWN PAYMENT THE LEASED CAR COSTS SUBSTANTIALLY MORE THAN THE ADVERTISED MONTHLY RATE OVER THE LENGTH OF THE LEASE THE NEW YORK ATTORNEY GENERAL'S OFFICE SAID IT HAS SETTLED WITH MAZDA MOTOR CO MITSUBISHI MOTORS CORP ISUZU MOTORS LTD ALFA ROMEO INC TRIHONDA ADVERTISING ASSOCIATION INC AND THE UPSTATE NEW YORK LINCOLN MERCURY DEALERS ASSOCIATION MR ABRAMS SAID THE AUTO MAKERS AND DEALER ASSOCIATIONS AGREED TO DISCLOSE THE AMOUNT OF ANY DOWN PAYMENT REQUIRED AND MAKE THE FOOTNOTES OF FUTURE ADS EASY TO READ MR ABRAMS SAID THE AUTO MAKERS WEREN'T AVAILABLE FOR COMMENT THE NEW YORK ATTORNEY GENERAL'S OFFICE SAID IT'S CONTINUING TO INVESTIGATE THE LEASE ADVERTISING PRACTICES OF OTHER AUTO COMPANIES AND AUTO DEALER ASSOCIATIONS BAYIERISCHE MOTOREN WERKE AG IN DECEMBER REACHED A SIMILAR SETTLEMENT 9304090072 930409 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 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 CORP 308 30 TO 119 DAYS 310 120 TO TO 149 DAYS 313 150 TO 179 DAYS 315 180 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 315 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 281 SIX MONTHS 298 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 304 ONE MONTH 306 THREE MONTHS 316 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 302 60 DAYS 302 90 DAYS 305 120 DAYS 307 150 DAYS 309 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 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 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 5/8 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 WEDNESDAY APRIL 7 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 292 13 WEEKS 304 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 719 60 DAYS 729 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 722 60 DAYS 732 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 277 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304090071 930409 CORRECTIONS & AMPLIFICATIONS PETROMINERALS CORP NAMED EUGENE L BUTLER PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR EFFECTIVE APRIL 15 MR BUTLER IS CHAIRMAN OF BLACK WARRIOR WIRELINE CORP AN ITEM WEDNESDAY INCORRECTLY REPORTED THAT PETROMINERALS' CHAIRMAN LARRY S DODSON WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER MARKETSHARE FIGURES FOR CERTAIN AUTO MAKERS WERE INCORRECTLY DESCRIBED IN AN ARTICLE TUESDAY FIGURES FOR COMPANIES INCLUDING GENERAL MOTORS CORP CHRYSLER CORP FORD MOTOR CO AND NISSAN MOTOR CORP WERE BASED ON US SALES OF PASSENGER CARS ONLY THE ARTICLE INCORRECTLY SAID THE FIGURES WERE BASED ON COMBINED SALES OF LIGHT VEHICLES INCLUDING CARS AND TRUCKS A TABLE ACCOMPANYING THE STORY IDENTIFIED THE MARKETSHARE FIGURES CORRECTLY 9304090069 930409 INTERNATIONAL WORLD ECONOMY US HURTING BOEING AND AIDING AIRBUS IS LIKELY TO KEEP BAN ON JET SALES TO IRAN BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF IRAN EVER WANTS TO USE ITS OWN AIRLINE TO SEND TERRORISTS OVERSEAS IT WON'T BE FLYING THEM ON A BOEING NOT IF THE CLINTON ADMINISTRATION HAS ITS WAY INSTEAD THEY WOULD HAVE TO BOARD A EUROPEAN AIRBUS PREFERABLY ONE POWERED BY EUROPEAN ENGINES THAT'S BECAUSE THE PRESIDENT SEEMS LIKELY TO REAFFIRM A BAN AGAINST US AIRLINER SALES TO IRAN A GOVERNMENT THAT SECRETARY OF STATE WARREN CHRISTOPHER CALLS ONE OF THE PRINCIPAL SOURCES OF SUPPORT FOR TERRORIST GROUPS AROUND THE WORLD THIS IS AN OLD ISSUE UNDERGOING A NEW REVIEW THAT'S WORKING ITS WAY TOWARD MR CLINTON'S DESK THE FINAL DECISION IS HIS BUT IN MEETINGS TO DATE SENIOR OFFICIALS MOSTLY OPPOSE A CHANGE FEW WANT TO DO ANYTHING THAT MIGHT IMPLY THE SLIGHTEST APPROVAL OF TEHRAN'S REGIME AND FEWER STILL WANT TO FIGHT CONGRESS WHERE ANTIIRAN FEELINGS ARE INTENSE FOR MANY AMERICANS THE BAN IS A MORAL ISSUE BUT WHETHER IT HELPS REDUCE INTERNATIONAL VIOLENCE OR SERVES ANY OTHER PRACTICAL PURPOSE IS LESS CLEAR SOME CRITICS CALL THE POLICY MORE RIGHTEOUS THAN REASONABLE BRINGING NO POLITICAL GAIN BUT CAUSING QUITE TANGIBLE LOSS TO THE US ECONOMY THE LOSERS INCLUDE BOEING CO WHICH MR CLINTON HAS SAID HE HOPES WILL WIN MORE FOREIGN SALES CALLING COMMERCIAL AVIATION ONE OF SEVEN GROWTH AREAS VITAL TO THE US FUTURE MR CLINTON RECENTLY PROMISED I'M NOT GOING TO ROLL OVER AND PLAY DEAD WHILE AIRBUS INDUSTRIE THE EUROPEAN AIRPLANEMANUFACTURING CONSORTIUM BOOKS ORDERS THAT BOEING OR ITS CHIEF US RIVAL MCDONNELL DOUGLAS CORP MIGHT FILL YET SO FAR HIS ADMINISTRATION SEEMS READY TO SURRENDER A POTENTIALLY LARGE IRANIAN MARKET WITHOUT A FIGHT ACCORDING TO THE CENTRAL INTELLIGENCE AGENCY IRAN AIR WILL SPEND AS MUCH AS 7 BILLION THIS DECADE TO REPLACE AGING AIRLINERS INCLUDING 25 BOEINGS DATING BACK TO 1968 IN FACT IT AGREED LATE LAST YEAR TO BUY 16 NEW 737S BUT BOEING CAN'T CONSUMMATE THE SALE UNLESS THE CLINTON ADMINISTRATION MAKES SOMETHING HAPPEN ACCORDING TO BOEING SPOKESMAN THAT'S NOT LIKELY THERE ARE A NUMBER OF BUSINESSES THAT WANT TO DEAL WITH IRAN MR CHRISTOPHER CONCEDES BUT GIVEN THE IRANIANS' PRESENT FRAME OF MIND THEIR PRESENT ATTITUDES WE OUGHT TO CONTINUE OUR POLICY NOR DO CLINTON AIDES WANT TO CREATE A NEW CONGRESSIONAL PROBLEM BY SQUABBLING ABOUT IRAN THEY HAVE A PRECEDENT IN LATE DECEMBER OFFICIALS WANTED OUTGOING PRESIDENT BUSH TO APPROVE THE BOEING SALE BUT THEN SECRETARY OF STATE LAWRENCE EAGLEBURGER AND THEN NATIONAL SECURITY ADVISER BRENT SCOWCROFT POCKETED THE PAPERWORK BEFORE IT REACHED HIM THEY DIDN'T WANT HIM TO EXIT IN A CLOUD OF CONTROVERSY THE BAN IS MEANT TO ISOLATE IRAN AS A TERRORIST STATE AND INSPIRE POLICY CHANGES BUT IT MAY DO THE OPPOSITE BROADLY SPEAKING IRANIAN LEADERS ARE DIVIDED BETWEEN ISLAMIC RADICALS WHOM THE US DISLIKES INTENSELY AND MODERNIZERS WHOM THE US DISLIKES LESS INTENSELY BUT SOME MIDEAST EXPERTS BELIEVE THE TRADE BAN STRENGTHENS RADICAL PREJUDICES AND WEAKENS THE MODERATES THE ONES WASHINGTON WOULD RATHER SEE IN CHARGE NOR DOES IT DENY IRAN NEW AIRCRAFT EUROPEAN ALLIES CONSIDER THE BAN BOTH POOR POLITICS AND BAD BUSINESS AND WON'T GO ALONG AIRBUS HAS SOLD TWO JETS FOR DELIVERY NEXT YEAR AND REPORTEDLY HAS OPTIONS FOR THREE MORE A BRITISH DIPLOMAT CALLS IRAN ONE MORE AIRLINER MARKET TO PURSUE VIGOROUSLY A SENIOR BONN OFFICIAL SAYS GERMANY ALSO WOULDN'T BLOCK AIRBUS SALES THOUGH IT MIGHT INSIST THAT CERTAIN MAINTENANCE BE CONDUCTED ABROAD TO KEEP SPECIAL TECHNOLOGY OUTSIDE IRAN NOT AT ISSUE ARE BROADER WESTERN RULES AGAINST SELLING IRAN WEAPONS AND DUALUSE TECHNOLOGY OF POSSIBLE MILITARY VALUE THE ALLIES GENERALLY AGREE WHEN MR CHRISTOPHER SAYS IRAN SHOWS DETERMINATION TO ACQUIRE WEAPONS OF MASS DESTRUCTION BUT THEY PLACE AIRLINERS WHICH NOT EVEN US OFFICIALS CLAIM HAVE WARMAKING OR TERRORIST RELEVANCE IN ANOTHER CATEGORY US AIRCRAFT AND ENGINE MAKERS MAY HAVE WORRIES BEYOND THE IRANIAN MARKET ITSELF FOR ONE THING THEIR RIVALS CAN TELL CUSTOMERS THAT WHIMSICAL US POLITICS MAKE AMERICANS UNRELIABLE SUPPLIERS WHO MIGHT HAVE TO BREAK CONTRACTS FOR POLICY REASONS THERE'S ALSO CONCERN THAT AIRBUS AND OTHERS WHICH OFTEN INSTALL US ENGINES MAY TURN MORE TO MAKERS SUCH AS ROLLSROYCE PLC THAT CAN IGNORE WASHINGTON'S RULES THERE'S ALSO A BROADER TRADE ISSUE SHOULD THE US EVEN TRY TO IMPOSE ITS OWN RULES NOT ACCORDING TO THE COMPETITIVENESS POLICY COUNCIL AN ADVISORY GROUP CREATED BY CONGRESS LAST MONTH IT CONCLUDED ALL UNILATERAL US EXPORT CONTROLS SHOULD BE SHARPLY LIMITED SINCE ONLY MULTILATERAL CONTROLS CAN BE EFFECTIVE AGAINST A TARGET COUNTRY 9304090068 930409 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON'S HOPES FOR HEALTH OVERHAUL THIS YEAR GROW DIM THE PRESIDENT POUNDS THE TABLE TO EMPHASIZE THAT HE WANTS HIS HEALTH PACKAGE TO PASS IN 1993 HEALTH AIDES BERATE NATIONAL ECONOMIC COUNCIL OFFICIALS SUSPECTED OF WANTING TO TORPEDO THE PLAN BY LEAKING TO THE MEDIA ABOUT DELAYS THE HEALTH PLAN IS NOW SCHEDULED TO BE READY BY MAY 17 THE WELFARE PLAN WHICH WOULD GO TO THE SAME CONGRESSIONAL COMMITTEES IS PUT OFF SO THE TWO INITIATIVES WON'T COMPETE BUT EVEN WITHIN THE ADMINISTRATION OFFICIALS DEBATE WHETHER PASSING A MAJOR HEALTH BILL THIS YEAR IS POSSIBLE A NEW STUMBLING BLOCK EMBOLDENED SENATE REPUBLICANS ARE WORKING ON THEIR OWN BILL INFLUENTIAL HOUSE DEMOCRATS ON THE ISSUE SUCH AS ROSTENKOWSKI AND STARK ALSO SAY THAT PUSHING THE LATEARRIVING PACKAGE THROUGH THIS YEAR ISN'T WISE OR EVEN POSSIBLE DEMOCRATIC CONGRESSIONAL LEADERS SAY PRIVATELY THEY HOPE TO GET MOST OF THE BILL DONE BUT THAT FINAL COMPROMISES MIGHT HAVE TO WAIT UNTIL 1994 THE FOCUS SHIFTS ON THE ADMINISTRATION'S BOSNIA POLICY WHILE THE STATE DEPARTMENT CONTINUES TO PUSH THE VANCEOWEN PEACE PLAN TOP PENTAGON OFFICIALS CONCLUDE IT IS ALL BUT DEAD AND ARE PLANNING FOR WHAT HAPPENS NEXT CLINTON WAS BRIEFED ON BOSNIA DURING A VISIT TO THE PENTAGON YESTERDAY AND KEY NATIONALSECURITY OFFICIALS WILL MEET TODAY TO DISCUSS THE ISSUE INCLUDING THE POSSIBLE USE OF AIR POWER BUT SUCH TALK MAKES THE MILITARY ESPECIALLY QUEASY US PLANNERS ARE WARY OF TRYING TO HIT INDIVIDUAL MORTARS OR ARTILLERY BATTERIES TAKING THE WAR TO SERBIAN LEADER MILOSEVIC BY TARGETING LARGE FIXED TARGETS LIKE DEFENSE HEADQUARTERS BY CONTRAST WOULD BE EASY BUT WOULD RILE US ALLIES BAD NEWS BEARS CLINTON AIDES PAINT A GRIM PICTURE TO ARGUE FOR STIMULUS ECONOMIC ADVISER TYSON USES THE UNVEILING OF THE BUDGET TO CITE A WEAK JOBS PICTURE DECLINING CONSUMER CONFIDENCE AND SLUGGISH OUTPUT AS EVIDENCE THAT THE ADMINISTRATION'S CAUTIOUS STIMULUS PACKAGE IS WARRANTED WHILE NOT ENDORSING THE PLAN THE FED'S GREENSPAN SAYS THE RECOVERY STILL FACES RISKS THAT WE CANNOT AFFORD TO OVERLOOK NEXT WEEK'S NUMBERS ON RETAIL SALES BUSINESS INVENTORIES AND INDUSTRIAL PRODUCTION SHOULD BE TELLING THE ADMINISTRATION BEGINS A RECESS LOBBYING CAMPAIGN WITH A BIG ASSET ABOVEAVERAGE UNEMPLOYMENT IN THE HOME STATES OF GOP SWING SENATORS COHEN OF MAINE HATFIELD OF OREGON CHAFEE OF RHODE ISLAND AND D'AMATO OF NEW YORK BUT SOME HILL DEMOCRATS WONDER WHETHER THE ADMINISTRATION HAS YET SETTLED ON A LOBBYING STRATEGY WHILE GORE BASHES THE GOP CLINTON SIGNALS A MORE CONCILIATORY APPROACH AFTER LAST WEEK'S PARTISAN BATTLES WHO'S THE BOSS IN THE WAKE OF NAVY SAILORS' CRITICISM OF CLINTON AIR FORCE CHIEF MCPEAK REMINDS ALL HIS COMMANDERS THAT SUBORDINATION TO CIVILIAN AUTHORITY IS A CORE VALUE OF THE US MILITARY OTHERS IN THE PENTAGON NOTE THAT THE CAMPAIGN IS BEGINNING FOR JOINT CHIEFS CHAIRMAN POWELL'S SUCCESSOR AND THAT MCPEAK IS ONE OF TWO CURRENT CHIEFS SEEN AS HAVING A SHOT WALL STREET FOES OF FORMER AMERICAN STOCK EXCHANGE CHAIRMAN ARTHUR LEVITT CLINTON'S LIKELY CHOICE FOR SEC CHAIRMAN PUSH NEW YORK ATTORNEY GENERAL ROBERT ABRAMS AS AN ALTERNATIVE CANDIDATE BUT WASHINGTON FLAK OVER LEVITT'S BUSINESS AND POLITICAL DEALINGS HASN'T DERAILED HIM FOR THE POST CLINTON FAILS TO FIGHT FOR TOUGHER UN SANCTIONS AGAINST LIBYA WHICH STILL WON'T HAND OVER SUSPECTS IN THE 1988 BOMBING OF PAN AM 103 DESPITE A CAMPAIGN LETTER TO THE VICTIMS' FAMILIES PROMISING FIRMER ACTION AND CHRISTOPHER'S PUBLIC THREATS OF AN OIL EMBARGO THE US GOES ALONG WITH A RENEWAL OF EXISTING SANCTIONS PRESIDENTIAL PAL AND POTENTIAL SUPREME COURT NOMINEE RICHARD ARNOLD WOULD RUN INTO PROBLEMS WITH LIBERAL GROUPS THE FEDERAL APPEALS COURT JUDGE VOTED IN 1988 TO UPHOLD A MINNESOTA PARENTALNOTIFICATION LAW FOR MINORS SEEKING ABORTIONS HIS 1983 OPINION THAT AN ALLMALE CHAPTER OF THE JAYCEES DIDN'T HAVE TO ADMIT WOMEN WAS LATER REVERSED BY THE SUPREME COURT KANTOR'S TOUGH TALK RILES THE JAPANESE BUT HIS INFLUENCE IS LIMITED THE TRADE REPRESENTATIVE TELLS THE TRILATERAL COMMISSION HE PLANS TO ACT LIKE A SLEDGEHAMMER BLASTING OPEN FOREIGN MARKETS TOSHIAKI TAGA DIRECTOR OF THE USJAPAN INSTITUTE AN ECONOMIC RESEARCH GROUP CALLS HIS RHETORIC ON SUCH ISSUES AS SEMICONDUCTOR SALES RATHER CRUDE BUT WITH JAPANESE PRIME MINISTER MIYAZAWA'S VISIT NEXT WEEK THE US STILL HASN'T DECIDED WHAT ISSUES TO RAISE WITH HIM OFFICIALS IN KANTOR'S OFFICE WANT THE US TO PRESS THE JAPANESE TO BUY MORE AUTO PARTS AND SUPERCOMPUTERS BUT AREN'T CONTROLLING THE MEETING'S AGENDA MORE INFLUENTIAL WHITE HOUSE OFFICIALS WANT TO FOCUS MORE ON BROADER ECONOMIC AND SECURITY CONCERNS TREASURY'S ALTMAN AND STATE'S LORD HEAD A TASK FORCE TRYING TO DEVISE AN ADMINISTRATIONWIDE POLICY ON JAPAN MINOR MEMOS SPRING BREAK THE EMIR OF KUWAIT DISPATCHES A JET TO BRING BUSH BAKER BRADY AND SPOUSES TO HIS COUNTRY MONDAY AS HIS PERSONAL GUESTS AS A PRINCETON STUDENT STATE DEPARTMENT SPOKESMAN MIKE MCCURRY WROTE A PAPER ON YUGOSLAV SELFMANAGEMENT AND THE SOCIALIST BLOC THE DIFFUSION OF POLITICAL INNOVATION