WASHINGTON PRESIDENT CLINTON PLANS TO NOMINATE CHICAGO BUSINESSMAN GEORGE MUNOZ TO BE ASSISTANT SECRETARY OF THE TREASURY FOR MANAGEMENT AND CHIEF FINANCIAL OFFICER THE WHITE HOUSE SAID MR MUNOZ WAS PRESIDENT OF THE CHICAGO BOARD OF EDUCATION IN THE MID1980S HE OWNS AND MANAGES A FIRM OF INTERNATIONAL ATTORNEYS AND BUSINESS CONSULTANTS THE PRESIDENT ALSO INDICATED APPROVAL FOR THREE OF TREASURY SECRETARY LLOYD BENTSEN'S CHOICES FOR DEPUTY ASSISTANT TREASURY SECRETARY POSTS JOYCE CARRIER FOR PUBLIC LIAISON JOAN LOGUEKINDER FOR PUBLIC AFFAIRS AND MARINA WEISS FOR HEALTH 9304090065 930409 DELTA QUEEN STUDIES PURCHASE NEW ORLEANS DELTA QUEEN STEAMBOAT CO SAID IT HAS HAD PRELIMINARY DISCUSSIONS THAT COULD LEAD TO THE ACQUISITION OF CLOSELY OWNED AMERICAN HAWAII CRUISES THE ANNOUNCEMENT DIDN'T DISCLOSE TERMS A DELTA QUEEN SPOKESMAN DECLINED FURTHER COMMENT AMERICAN HAWAII AN AMERICAN FLAG CARRIER OWNS TWO CRUISE SHIPS THAT OPERATE IN THE HAWAIIAN ISLANDS DELTA QUEEN WHICH ALSO IS AN AMERICAN FLAG CARRIER OWNS TWO OVERNIGHT PADDLEWHEEL STEAMBOATS OPERATING IN THE US 9304090064 930409 BUSINESS BRIEF BALTIMORE BANCORP FIRM TO PAY 175 MILLION TO SETTLE SHAREHOLDER SUIT BALTIMORE BANCORP SAID IT AGREED TO PAY UP TO 175 MILLION TO SETTLE A SHAREHOLDER CLASSACTION SUIT OVER A 1990 ACQUISITION OFFER FROM FIRST MARYLAND BANCORP THAT WAS REJECTED THE SETTLEMENT COVERS CLAIMS AGAINST BALTIMORE BANCORP ON BEHALF OF PURCHASERS OF THE COMPANY'S STOCK FROM MAY 1990 THROUGH DECEMBER 1991 SEVERAL FORMER OFFICERS AND DIRECTORS ALSO WERE SUED THE SETTLEMENT DOESN'T COVER CLAIMS AGAINST THEM DISSIDENT SHAREHOLDERS UPSET WITH THE REJECTION OF THE OFFER THAT WAS AT A LARGE PREMIUM TO MARKET VALUE LAUNCHED A PROXY FIGHT THAT WON THEM CONTROL OF THE BOARD IN 1991 BALTIMORE BANCORP IN BALTIMORE SAID IT HAS ESTABLISHED A RESERVE FOR THE PAYMENT WHICH WOULD BE REFLECTED IN ITS FIRSTQUARTER RESULTS IN THE 1992 FIRST QUARTER BALTIMORE BANCORP EARNED 51 MILLION OR 40 CENTS A SHARE 9304090063 930409 BUSINESS BRIEF COMINCO LTD CANADIAN CONCERN TO OFFER SHARES IN FERTILIZER COMPANY COMINCO LTD SAID IT AGREED WITH UNDERWRITERS FOR AN INITIAL PUBLIC OFFERING OF 90 MILLION CANADIAN DOLLARS 713 MILLION OF SHARES IN ITS FERTILIZER OPERATIONS AT AN ISSUE PRICE OF C1250 A SHARE THE OFFERING WOULD COMPLETE COMINCO'S PREVIOUSLY REPORTED PLAN TO SPIN OFF A SUBSTANTIAL STAKE IN ITS FERTILIZER BUSINESS IT WOULD LEAVE THE VANCOUVER BRITISH COLUMBIA MINING COMPANY WITH 498 OF COMINCO FERTILIZERS LTD THE PUBLIC WITH 40 AND ALBERTA ENERGY CO WITH 102 ALBERTA ENERGY A MINORITY PARTNER WITH COMINCO IN THE FERTILIZER BUSINESS IS AN OIL AND GAS COMPANY BASED IN CALGARY ALBERTA ALONG WITH SHARES IN THE NEW COMPANY COMINCO SAID IT WILL RECEIVE COMINCO FERTILIZER DEBENTURES VALUED AT C1577 MILLION AND ALBERTA ENERGY WILL RECEIVE DEBENTURES VALUED AT C323 MILLION IT SAID PROCEEDS OF THE SHARE ISSUE WILL BE USED TO REDUCE THAT DEBT COMINCO SAID THE OFFERING WILL BE MADE IN CANADA AND EUROPE AND THE NEW COMPANY'S SHARES WILL BE LISTED ON THE TORONTO STOCK EXCHANGE 9304090062 930409 ENTERPRISE TASK FORCE TURNS UP THE HEAT ON BOILERROOM SCAMS SAN DIEGO AGENT COMBATS FRAUD RINGS THAT OFTEN PREY ON SMALL BUSINESSES BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO FOR DARWIN WISDOM A SPECIAL AGENT WITH THE FEDERAL BUREAU OF INVESTIGATION THE PURSUIT OF BOILERROOM SCAMS BEGAN ONE MORNING 12 YEARS AGO WHEN HE DROVE UP TO HIS OFFICE HERE PARKED IN FRONT OF A SMALL BUILDING RIGHT NEXT DOOR TO FBI HEADQUARTERS WERE FOUR MATCHING CADILLACS BEARING SEQUENTIALLY NUMBERED LICENSE PLATES THE ONLY PEOPLE WHO SPEND MONEY LIKE THAT ARE CON MEN MR WISDOM RECALLS THINKING FOLLOWING HIS HUNCH HE TRACED THE PLATES AND EVENTUALLY DISCOVERED THAT THE CARS' OWNERS WERE OPERATING A BOGUS TAXSHELTER SCHEME WHICH HE SHUT DOWN INSPIRED BY THIS FIRST BIT OF SLEUTHING MR WISDOM FOUNDED THE SAN DIEGO BOILER ROOM TASK FORCE HE HAS SINCE BUILT IT INTO WHAT LAW ENFORCEMENT OFFICIALS SAY IS ONE OF THE MOST EFFECTIVE WEAPONS IN THE US AGAINST TELEPHONE AND MAIL FRAUD THE SAN DIEGO TASK FORCE TODAY IS PLAYING A CRUCIAL ROLE IN A FEDERAL OFFENSIVE AGAINST BOILERROOM SCAMS AND THAT CRACKDOWN HIGHLIGHTED BY A MASSIVE FBI STING OPERATION LAST MONTH IS GOOD NEWS FOR SMALL BUSINESSES LAW ENFORCEMENT AUTHORITIES SAY MOST BOILER ROOMS LURE PEOPLE TO GIVE MONEY TO PHONY CHARITIES OR MAKE INVESTMENTS IN COMMODITIES PENNY STOCKS MISLEADING PRIZE OFFERINGS AND THE LIKE THE OPERATIONS COMMONLY SOLICIT BY DIRECT MAIL OR TELEPHONE SMALL ENTERPRISES ARE OFTEN DIRECT VICTIMS OF FRAUD WE'RE SEEING A LOT OF SMALL BUSINESSES BEING APPROACHED BY BOILER ROOMS TO PURCHASE KEY CHAINS OR HATS WITH A COMPANY LOGO ON THEM IN ORDER TO ENTER A SWEEPSTAKES OF SOME SORT SAYS JOHN BARKER VICE PRESIDENT OF THE NATIONAL FRAUD INFORMATION CENTER WHEN THEY BUY THE PRODUCT THE EXPECTED REWARD NEVER ARRIVES BUT AN EVEN BIGGER COST TO SMALL BUSINESSES IS THE DISTRUST THAT BOILER ROOMS SOW IN THE PUBLIC MIND ABOUT DIRECT MARKETING MANY PEOPLE ARE AFRAID TO EVEN TALK TO LEGITIMATE TELEMARKETERS OVER THE TELEPHONE BECAUSE OF THE ABUSE THEY'VE BEEN SUBJECTED TO SAYS JOHN GALLES EXECUTIVE DIRECTOR OF NATIONAL SMALL BUSINESS UNITED A TRADE GROUP THE SAN DIEGO TASK FORCE IS WIDELY VIEWED AS A MODEL FOR OTHER PARTS OF THE COUNTRY PLAGUED BY BOILERROOM ACTIVITY PARTICULARLY HARDHIT AREAS INCLUDE FLORIDA NEVADA AND UTAH AS WELL AS SOUTHERN CALIFORNIA OFFICIALS SAY LAST MONTH THE FBI LAUNCHED OPERATION DISCONNECT A NATIONWIDE STING THAT CULMINATED 2 1/2 YEARS OF UNDERCOVER WORK THE STING SPREAD OUT ACROSS 13 STATES WAS THE LARGEST MOVE AGAINST BOILER ROOMS TO DATE IT RESULTED IN 240 ARREST WARRANTS 90 OF WHICH WERE ISSUED IN SAN DIEGO OPERATION DISCONNECT WAS BASED IN SALT LAKE CITY AND INVESTIGATORS FROM THE SAN DIEGO TASK FORCE PLAYED A LARGE ROLE FBI AGENTS POSED AS TELEMARKETERS OFFERING THE LATEST IN SPEEDDIALING EQUIPMENT TO SUSPECTED BOILERROOM OPERATORS THE AGENTS COLLECTED INSIDE INFORMATION ABOUT THE OWNERSHIP AND SALES TECHNIQUES OF 123 BOILER ROOMS LEADING TO THE FLURRY OF ARRESTS ON THE SAME DAY THAT THE AGENCY BEGAN MAKING THE ARRESTS LEGISLATION WAS INTRODUCED IN THE US SENATE CALLING FOR TOUGHER PRISON SENTENCES FOR BOILER ROOM OPERATORS AND MORE MONEY TO BEEF UP LAW ENFORCEMENT WITH PERHAPS 60 PEOPLE WORKING THE TELEPHONES A WELLRUN BOILER ROOM CAN TAKE IN 10 MILLION ANNUALLY ACCORDING TO MITCHELL DEMBIN AN ASSISTANT US ATTORNEY WHO CODIRECTS THE TASK FORCE BUT SMALLER FLYBYNIGHT OPERATIONS ARE ALSO COMMON A RECENT EXAMPLE INVOLVES JONATHAN HALL FROM 1990 TO 1992 MR HALL SOLD PHONY PRECIOUSMETAL INVESTMENTS OVER THE TELEPHONE FOR TWO SAN DIEGO BOILER ROOMS AFTER THOSE OPERATIONS WERE SHUT DOWN HE PUT TOGETHER HIS OWN SCAM USING THE ALIAS JACK BRONNER MR HALL CALLED INVESTORS WHO HAD BEEN FLEECED BY HIS FORMER EMPLOYERS AND SAID HE COULD HELP THEM RECOVER THEIR LOST FUNDS FOR A FEE HE POCKETED THE FEE BUT NEVER HELPED ANY OF THE VICTIMS RECOVER THEIR MONEY AFTER INTERVIEWING SOME OF THE VICTIMS AS PART OF ITS INVESTIGATION OF THE DEFUNCT BOILER ROOMS THE SAN DIEGO TASK FORCE LEARNED OF MR HALL'S SCAM HE WAS ARRESTED LATE LAST YEAR LAST WEEK HE WAS SENTENCED TO 18 MONTHS IN PRISON FOR FRAUD AND MONEY LAUNDERING THE RECENT CLAMPDOWN ON BOILER ROOMS COMES AS A VINDICATION FOR MR WISDOM WHO HAS BEEN WITH THE FBI FOR 25 YEARS THROUGHOUT THE 1980S AND EARLY 1990S HE TOILED AS ONE OF ONLY A HANDFUL OF US LAW ENFORCERS DEVOTING THEIR FULL TIME TO INVESTIGATING THE SCAMS IN THOSE YEARS HE WORKED TO SET UP AN ALLIANCE WITH LOCAL PROSECUTORS TO COMBAT BOILER ROOMS AND TO CONVINCE OTHER LAWENFORCEMENT OFFICIALS OF THE PROBLEM'S SEVERITY ALTHOUGH A TASK FORCE WAS FORMALLY ORGANIZED IN SAN DIEGO IN 1983 FOR A VARIETY OF REASONS INCLUDING BUREAUCRATIC OBSTACLES LITTLE WAS DONE IN THE WAY OF ENFORCEMENT WE KNEW THE PUBLIC WAS NOT BEING ADEQUATELY INFORMED AND ENFORCEMENT WAS AT A LOW TIDE SAYS MR WISDOM THAT ENVIRONMENT MADE IT VERY RIPE FOR BOILERROOM ACTIVITY TO TAKE OFF IN SAN DIEGO ABOUT TWO YEARS AGO THE US ATTORNEY'S OFFICE IN SAN DIEGO RECOGNIZED THAT BOILER ROOMS HAD BECOME A SERIOUS THREAT THE OFFICE ASSIGNED MR DEMBIN TO CODIRECT THE TASK FORCE WITH MR WISDOM GIVING IT A PROSECUTORIAL ZEAL THAT MR WISDOM SAYS HAD BEEN SORELY LACKING SINCE THEN THE OFFICE HAS BEEN REINFORCED BY THE ADDITION OF INVESTIGATORS FROM THE INTERNAL REVENUE SERVICE AND THE US POSTAL INSPECTION SERVICE AND BY LOCAL LAWENFORCEMENT OFFICIALS BUT COLLEAGUES CREDIT MR WISDOM WITH BEING THE DRIVING FORCE BEHIND THE EFFORT DARWIN HAS BEEN INVOLVED WITH THESE TYPES OF INVESTIGATIONS LONGER THAN ANYONE ELSE SAYS CHARLES OWENS CHIEF OF THE FBI'S ECONOMICCRIMES UNIT SAN DIEGO HAS A TREMENDOUS INTELLIGENCE BASE AND HAS BEEN ABLE TO MOVE VERY AGGRESSIVELY AGAINST ILLEGAL TELEMARKETERS TODAY OTHER AREAS ARE STEPPING UP THEIR EFFORTS TOO BOTH THE US ATTORNEY'S OFFICE IN LOS ANGELES AND A VARIETY OF STATE LAW ENFORCEMENT AGENCIES IN FLORIDA ARE DEVOTING SERIOUS ATTENTION TO BOILERROOM SCAMS AND OPERATION DISCONNECT HAS LENT MUSCLE TO THESE EFFORTS BUT EVEN WITH GREATER FEDERAL SUPPORT THE SAN DIEGO TASK FORCE STILL HAS PLENTY OF WORK TO DO OUR MISSION IS TWOFOLD SAYS JULIA CRAIG AN ASSISTANT US ATTORNEY AND A TASK FORCE MEMBER ONE IS TO TRACK DOWN BOILERROOM OPERATORS WHO ARE HISTORICALLY DIFFICULT TO TRACK DOWN THE SECOND IS TO EDUCATE THE PUBLIC ABOUT THE LENGTHS THESE PEOPLE WILL GO TO STEAL MONEY FROM THEM 9304090061 930409 WHO'S NEWS PRESIDENT QUITS POST AT STAPLES STOCK FALLS 78 BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL STAPLES INC'S PRESIDENT AND CHIEF OPERATING OFFICER HENRY J NASELLA RESIGNED UNEXPECTEDLY UNSETTLING INVESTORS AND PUSHING THE HIGHFLYING OFFICE SUPERSTORE'S STOCK DOWN 78 IN HEAVY TRADING ANALYSTS SAW THE DEPARTURE AS A SETBACK CITING MR NASELLA'S CRITICAL DAYTODAY ROLE IN MANAGING THE FRAMINGHAM MASS RETAILER'S SURGING GROWTH OVER THE PAST FIVE YEARS STAPLES SHARES FELL 250 TO CLOSE AT 2950 A SHARE IN NATIONAL OVERTHECOUNTER TRADING ON VOLUME OF MORE THAN THREE MILLION SHARES IN AN INTERVIEW MR NASELLA 46 YEARS OLD SAID THE DECISION TO RESIGN WAS HIS OWN AND WAS TAKEN FOR PERSONAL REASONS HE SAID THAT AFTER FIVE YEARS OF CONSTANT PRESSURE AND FREQUENT TRAVEL HE PLANNED SIMPLY TO TAKE THE SUMMER OFF AND SPEND MORE TIME WITH HIS FAMILY I FEEL GOOD ABOUT THE SENIOR MANAGEMENT TEAM WE'VE RECRUITED AND THE FUNDAMENTALS OF THIS COMPANY ARE VERY STRONG HE SAID STAPLES AND THE OTHER TWO OFFICE SUPERSTORES ARE GOING TO KEEP TAKING SIGNIFICANT SHARE FROM THE TRADITIONAL OFFICE SUPPLY FIRMS MR NASELLA WAS REFERRING TO STAPLES COMPETITORS OFFICE DEPOT INC THE INDUSTRY LEADER AND THE OFFICE MAX UNIT OF KMART CORP IN RECENT YEARS MR NASELLA HAS HANDLED MOST OPERATING DUTIES FREEING THE FOUNDER AND CHIEF EXECUTIVE OFFICER THOMAS STEMBERG TO CONCENTRATE ON STRATEGIC ISSUES AND NEW PROJECTS SALES FOR THE YEAR ENDED IN JANUARY WERE 883 MILLION UP 46 FROM LAST YEAR AND NEARLY FIVE TIMES SALES THREE YEARS AGO EFFECTIVELY MANAGING ALL THAT GROWTH IS AN ACUTE CHALLENGE SAID CHRISTOPHER VROOM AN ANALYST WITH ALEX BROWN & SONS THEY HAVE A LOT ON THEIR PLATE AND IT WILL BE THAT MUCH HARDER WITHOUT HENRY BUT MR VROOM ADDED THAT MR NASELLA HAS PUT TOGETHER ONE OF THE DEEPEST MANAGEMENT TEAMS OF ANY EMERGING COMPANY IN RETAILING THOMAS R KULLY AN ANALYST AT WILLIAM BLAIR SAID MR NASELLA WAS A VERY STRONG NO 2 IN EVERY SENSE THERE WASN'T A SINGLE DECISION HE DIDN'T INFLUENCE OR DIRECT AND MANY OF THE KEY HIRES HAVE BEEN HIS MR STEMBERG THE CHIEF EXECUTIVE IS A FORCEFUL STRATEGIC THINKER HE SAID BUT NOT A DAYTODAY MANAGER STILL MR KULLY SAID IF HENRY HAS DONE HIS JOB AS WELL AS WE THINK HE HAS THE COMPANY SHOULDN'T MISS A BEAT WHEN HE LEAVES MR NASELLA'S DEPARTURE IS EFFECTIVE JUNE 30 THOUGH HE WILL REMAIN AS A DIRECTOR IN A STATEMENT MR STEMBERG CALLED THE RESIGNATION A LOSS OF A SUPERIOR BUSINESSMAN AND CLOSE PARTNER STAPLES NAMED LOUIS R PEPI 49 PRESIDENT OF THE BIG US RETAIL STORE DIVISION AND JOSEPH R VASSALLUZZO 45 EXECUTIVE VICE PRESIDENT OF GROWTH AND SUPPORT SERVICES BOTH WILL REPORT TO MR STEMBERG MR NASELLA SAID THAT HE WANTED TO REORDER MY PRIORITIES AND SAID FOR THE FIRST TIME I DON'T KNOW WHAT I'M GOING TO DO NEXT BUT HE ADDED I STILL HAVE DREAMS AND AMBITIONS AND I WANT TO TAKE SOME TIME OFF TO THINK ABOUT IT REMEMBER PETER LYNCH HE ASKED REFERRING TO THE FIDELITY MUTUAL FUND MANAGER WHO STEPPED DOWN THREE YEARS AGO HE LEFT AT THE TOP OF HIS GAME MR NASELLA SAID HE KNEW WHEN THE TIME WAS RIGHT MR NASELLA WHOSE SALARY LAST YEAR WAS 378968 APPARENTLY WON'T HAVE TO WORRY ABOUT MONEY WHILE HE PONDERS HIS NEXT MOVE HE TOLD ANALYSTS YESTERDAY HE CURRENTLY HOLDS ABOUT 100000 STAPLES SHARES VALUED AT 295 MILLION AT CURRENT PRICES 9304090060 930409 BUSINESS BRIEF FOOD LION INC FIRM POSTS 56 DECREASE IN 1STQUARTER EARNINGS FOOD LION INC CONTINUING TO FEEL THE EFFECTS OF A TELEVISION REPORT THAT CRITICIZED THE SUPERMARKET CHAIN SAID FIRSTQUARTER EARNINGS FELL 56 NET INCOME THE COMPANY IN SALISBURY NC SAID DROPPED TO 219 MILLION OR FIVE CENTS A SHARE IN THE QUARTER FROM 496 MILLION OR 10 CENTS A SHARE A YEAR EARLIER SALES ROSE ALMOST 4 TO 166 BILLION FROM 16 BILLION THE RESULTS WERE AT THE LOW END OF ANALYSTS' EXPECTATIONS AS SAMESTORE SALES FELL 6 DURING THE THREE MONTHS THE NUMBERS MARKED THE SECOND CONSECUTIVE QUARTER THAT FOOD LION'S EARNINGS HAVE DROPPED SHARPLY FURTHER REFLECTING FALLOUT FROM A TV STORY AIRED LAST NOVEMBER IN THAT REPORT ABC'S PRIME TIME LIVE CHARGED THE CHAIN WITH UNCLEAN AND DECEPTIVE PROCEDURES FOR HANDLING MEAT AND FISH THE COMPANY HAS DENIED THE ALLEGATIONS FOOD LION SAID YESTERDAY THAT IT STILL PLANS TO OPEN BETWEEN 100 AND 110 NEW STORES IN 1993 PRIMARILY IN THE SOUTHEAST 9304090059 930409 MUCH TO OVERCOME AS IT CHOOSES A LEADER NAACP FACES CHARGE IT HAS LOST ITS EDGE IN CINCINNATI SOME WANT IT TO TACKLE SOCIAL ISSUES THAT COURTS CAN'T SOLVE A GROWING GENERATION GAP BY DOROTHY J GAITER STAFF REPORTER OF THE WALL STREET JOURNAL CINCINNATI WHEN THE KU KLUX KLAN ERECTED A CROSS IN A MAJOR PLAZA IN THIS CITY'S DOWNTOWN IN DECEMBER RODNEY GRAY A 32YEAROLD BOARD MEMBER OF THE LOCAL NAACP CHAPTER URGED THAT THE GROUP JOIN A PROTEST RALLY BUT CHAPTER PRESIDENT FRANK ALLISON 62 URGED PEOPLE TO STAY AWAY SO AS NOT TO HELP THE KLAN GENERATE MORE PUBLICITY SO OF THE 200 PROTESTERS AT THE RALLY MR GRAY SAYS HE WAS ONE OF JUST FIVE BLACKS AND THE ONLY ONE FROM THE NAACP IT WAS ABSOLUTELY RIDICULOUS HE SAYS WE'RE IN A HELL OF A LOT OF TROUBLE IF WE CAN'T TURN OUT PEOPLE FOR SOMETHING LIKE THIS THE EPISODE REVEALS WHAT SOME SAY IS THE TROUBLE WITH THE NAACP ITS CRITICS FROM WITHIN AND OUTSIDE THE ORGANIZATION PEOPLE MAINLY ON THE YOUNGER SIDE OF A GENERATIONAL DIVIDE SAY THE GROUP IS NO LONGER AS AGGRESSIVE AS IT ONCE WAS AND SHOULD BE ON CIVILRIGHTS ISSUES IN ADDITION THE CRITICS CONTEND THE GROUP IS FAILING TO ADDRESS MANY OTHER PROBLEMS TROUBLING BLACKS SUCH AS CRIME DRUGS CHRONIC UNEMPLOYMENT TEEN PREGNANCY AND SPIRALING SCHOOL DROPOUT RATES SO AS THE 64MEMBER BOARD OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE MEETS IN ATLANTA TODAY TO PICK A SUCCESSOR TO ITS RETIRING EXECUTIVE DIRECTOR BENJAMIN L HOOKS THE ORGANIZATION IS IN THE GRIP OF WHAT MAY BE ITS GREATEST CHALLENGE EVER TO REMAIN RELEVANT TO ITS CONSTITUENTS THOSE WHO WISH FOR A MORE ACTIVIST NAACP MAY HAVE BEEN DISAPPOINTED THIS WEEK AS THE REV JESSE JACKSON 51 REMOVED HIMSELF FROM AMONG FOUR FINALISTS UNDER CONSIDERATION TO LEAD THE NATION'S LARGEST AND OLDEST CIVILRIGHTS GROUP THE REMAINING CANDIDATES MUCH LESSER KNOWN AND ALL IN THEIR 40S SAY THEY TOO SEEK A MORE ACTIVE ORGANIZATION BUT MR JACKSON CITED AS A REASON FOR HIS WITHDRAWAL CHANGES BEING CONSIDERED IN THE GROUP'S CONSTITUTION THAT HE SAYS WOULD MAKE IT DIFFICULT FOR THE NEXT EXECUTIVE DIRECTOR TO BE A STRONG AND EFFECTIVE LEADER THE CHANGES HE SAID WOULD SHIFT POWER TO THE BOARD CHAIRMAN CURRENTLY WILLIAM GIBSON 61 A NEW EXECUTIVE DIRECTOR COULD BE NAMED AS EARLY AS TODAY FOLLOWING MR JACKSON'S MOVE THE NAACP YESTERDAY SAID IT MIGHT CHOOSE SOMEONE WHO ISN'T ON THE LIST OF FINALISTS THOSE FINALISTS ARE THE REV BENJAMIN CHAVIS 45 EXECUTIVE DIRECTOR FOR THE UNITED CHURCH OF CHRIST'S COMMISSION FOR RACIAL JUSTICE IN CLEVELAND JEWEL JACKSON MCCABE 47 A NEW YORK MANAGEMENT CONSULTANT AND FOUNDER OF THE NATIONAL COALITION OF 100 BLACK WOMEN A CIVIC GROUP AND EARL SHINHOSTER 42 HEAD OF THE NAACP'S SOUTHEAST REGIONAL OFFICE IN ATLANTA THE NEW LEADERSHIP WILL BE TESTED FROM THE START EVEN THOUGH NAACP MEMBERSHIP HAS GROWN 2 TO 3 ANNUALLY OVER THE PAST FIVE YEARS TO AROUND 500000 MANY YOUNGER PEOPLE FROM TEENAGERS TO AGING BABY BOOMERS QUESTION THE ORGANIZATION'S RELEVANCY A POLL PUBLISHED LAST YEAR BY THE DETROIT NEWS AND GANNETT NEWS SERVICE OF 1211 BLACK ADULTS FOUND YOUNGER PEOPLE WANTING A MORE ACTIVIST LEADERSHIP FROM THE NAACP AND OTHER TRADITIONAL RIGHTS GROUPS IN FIGHTING CRIME DEVELOPING BUSINESSES ATTACKING POVERTY AND EDUCATING BLACK CHILDREN THEY ARE GRATEFUL FOR WHAT THESE ORGANIZATIONS HAVE ACCOMPLISHED IN THE PAST BUT NOW WANT TO SEE THEM PAYING MORE ATTENTION TO GRASSROOTS CONCERNS NOT JUST THOSE OF THE MIDDLE AND UPPER MIDDLE CLASSES ON THE OTHER HAND SOME OLDER NAACP MEMBERS CITE THE FACT THAT THE ORGANIZATION IS STILL WINNING LAWSUITS AND SIGNING AGREEMENTS WITH CORPORATIONS FOR HIRING AND FOR BUSINESS CONTRACTS FOR BLACKS THEREBY VALIDATING ITS FOCUS ON BLACKS' RIGHTS AND ELIMINATING BARRIERS TO OPPORTUNITIES THE KIND OF ACTIVISM SOME YOUNG PEOPLE WANT WOULD UNDERMINE THE ORGANIZATION'S EFFECTIVENESS THEY SAY ESPECIALLY IN THIS CLIMATE OF ECONOMIC HARDSHIP AND WHITES' IMPATIENCE WITH RACIAL PROGRESS MARIAN SPENCER 72 WHO HAS BEEN A MEMBER SINCE SHE WAS 13 SAYS YOUNG PEOPLE INHERITED MANY OF THE CHANGES THAT OLDER PEOPLE HAD WORKED HARD TO BRING ABOUT AND THEY'VE NOT REALLY UNDERSTOOD THEIR RESPONSIBILITY FOR CONTINUING TO EFFECT THOSE CHANGES MS SPENCER A PAST PRESIDENT OF THE CINCINNATI CHAPTER AND THE GRANDDAUGHTER OF A SLAVE ALSO BELIEVES IT IS NECESSARY THAT THE NEXT NAACP LEADER BE SOMEONE WHO CAN SPAN THE GROUP'S GENERATION GAP SOMEONE SHE PROPOSES WITH THE ARSENIO HALL CONNECTION IN ANY CASE THE NEW EXECUTIVE DIRECTOR WILL INHERIT A LEGACY OF CIVILRIGHTS ADVOCACY AND ACTIVISM THAT FUNDAMENTALLY REFORMED RACE RELATIONS IN THIS COUNTRY INCLUDING THE ERADICATION OF SOUTHERN JIM CROW LAWS AND SCHOOL SEGREGATION AND DESPITE ITS NAME THE ORGANIZATION'S IMPACT ON SOCIAL POLICY ALREADY EXTENDS BEYOND RACIAL CONCERNS LARGELY BECAUSE OF THE NAACP THERE ARE FARREACHING LAWS THAT BENEFIT NOT JUST BLACKS BUT OTHERS WHO FACE DISCRIMINATION BECAUSE OF GENDER NATIONAL ORIGIN RELIGION OR DISABILITY THE STRUGGLE OVER THE FUTURE DIRECTION OF THE NAACP CAN BE SEEN UP CLOSE HERE IN CINCINNATI HOME TO ONE OF ITS 2300 CHAPTERS AROUND THE COUNTRY CINCINNATI A CITY OF 364000 RESIDENTS 38 OF THEM BLACK IS JUST ACROSS THE OHIO RIVER FROM KENTUCKY IT IS NORTHERN ENOUGH TO HAVE AVOIDED MOST OF THE VITRIOLIC RACISM AND JIM CROW LAWS OF THE DEEP SOUTH BUT AS IN CITIES ALL OVER THE COUNTRY EVIDENCE OF RACISM CAN BE FOUND ACROSS THE POLITICAL AND SOCIAL LANDSCAPE A CASE IN POINT WAS THE CROSSRAISING BY THE KKK IN DOWNTOWN'S FOUNTAIN SQUARE AND SHORTLY BEFORE THAT MARGE SCHOTT OWNER OF THE CINCINNATI REDS BASEBALL TEAM ACKNOWLEDGED USING THE TERM NIGGER IN CONVERSATIONS ONLY LAST YEAR DID ONE OF THE CITY'S LARGE LAW FIRMS NAME ITS FIRST BLACK PARTNER AND IT WAS ONLY THIS YEAR THAT THERE WAS EVER MORE THAN ONE BLACK DIRECTOR AMONG ALL THE BOARDS OF ALL THE CITY'S MAJOR BANKS IT WAS JUST FIVE YEARS AGO THAT PROCTER & GAMBLE CO THE CONSUMERPRODUCTS GIANT BASED HERE FIRST PUT A BLACK ON ITS BOARD THE CORPORATE POWER STRUCTURE THE BANKS THE LARGE LAW FIRMS AND SO FORTH THEY'VE GOT THE POWER AND THEY'RE INTERESTED IN A QUIET KINGDOM SAYS ONE CINCINNATIAN FORMER OHIO GOV JOHN J GILLIGAN HE SAYS THE ATTITUDE OF THE ESTABLISHMENT IS IF YOU WANT TO TALK TALK BUT PLEASE MIND YOUR MANNERS LET'S NOT GET THINGS RILED UP HERE IN ITS OWN WAYS THE LOCAL NAACP CHAPTER HAS BEEN TRYING TO CHANGE THINGS SINCE ITS BEGINNING IN 1915 WHEN PEOPLE HERE TALK ABOUT MAJOR NAACPLED INITIATIVES AND VICTORIES THEY OFTEN START WITH THE OPENING IN THE 1950S OF CONEY ISLAND A CINCINNATI AMUSEMENT PARK THAT BARRED BLACKS MORE RECENTLY IN 1974 THE NAACP FILED A SUIT AGAINST LOCAL BOARDS OF EDUCATION THAT RESULTED IN THE SCHOOLS' BEING PLACED UNDER COURT SUPERVISION FOR THE PURPOSE OF DESEGREGATION BUT MANY BLACKS HERE QUESTION WHETHER THE GROUP IS NOW DOING ENOUGH PATRICIA WEST CONTENDS IT IS A DORMANT ORGANIZATION AT A TIME WHEN THERE ARE LOTS OF FIGHTS I'D LIKE TO SEE THEM TAKE ON MS WEST A 47YEAROLD ADMINISTRATIVE ASSISTANT FOR A FOOD COMPANY CITES EDUCATION HIRING PROMOTION AND FAIR PAY AS ISSUES ON WHICH THE NAACP SHOULD BECOME MORE ACTIVE VALERIE MCWILSON 36 A RECEPTIONIST AND SINGLE MOTHER OF THREE DOESN'T THINK THE NAACP PAYS ENOUGH ATTENTION TO THE PROBLEMS OF SINGLE PARENTS SHE SAYS SHE DESPERATELY NEEDS AFFORDABLE HOUSING DISSATISFACTION WITH THE NAACP'S FOCUS CAN EVEN BE FOUND WITHIN THE GROUP'S INNER CIRCLE MICHAEL RAPP EXECUTIVE DIRECTOR OF THE JEWISH COMMUNITY RELATIONS COUNCIL AND A MEMBER OF THE LOCAL NAACP CHAPTER'S BOARD SAYS I'M NOT SURE WHAT ITS MISSION IS ACCORDING TO CRITICS THE CHAPTER HAS FAILED TO RESPOND AGGRESSIVELY ENOUGH OR AT ALL TO MOST OF THE MAJOR ISSUES TO COME UP IN RECENT YEARS THE REAL INDICATOR OF THE NAACP'S LACK OF STRENGTH HERE IS THE NUMBER OF ORGANIZATIONS THAT HAVE BEEN STARTED BECAUSE PEOPLE CAN'T DO THINGS THROUGH THE NAACP SAYS MORRIS WILLIAMS AN NAACP MEMBER AND HEAD OF IMPACT A GROUP THAT PUSHES MINORITY ISSUES AT CITY HALL SO YOU HAVE GROUPS DEALING WITH DISCRIMINATION IN CITY HALL IN COUNTY GOVERNMENT DEALING WITH DISCRIMINATION IN THE PRIVATE SECTOR THE SCHOOL BOARD AND IN THE JUDICIAL SYSTEM ALL BECAUSE THE NAACP ISN'T RESPONSIVE THE LOCAL CHAPTER DIDN'T INITIATE ANY OF THREE MAJOR LAWSUITS FILED IN THE 1970S AND 1980S INVOLVING THE HIRING AND PROMOTION OF BLACKS IN THE FIRE AND POLICE DEPARTMENTS AND ATTACKING THE WAY MUNICIPAL COURT JUDGES ARE CHOSEN IN 1991 FRANK CLARKE 65 A COMMUNITY ACTIVIST AND AN NAACP MEMBER ASKED MR ALLISON THE CHAPTER PRESIDENT TO SUE THE CITY TO FORCE IT TO REPLACE ITS ATLARGE ELECTIONS FOR CITY COUNCIL WITH DISTRICT VOTING TO INCREASE THE CHANCE OF ELECTING MORE BLACKS TO THE BODY MR ALLISON DECLINED HE NEEDED AN ANSWER RIGHT AWAY AND FOR THE CHAPTER TO TAKE SUCH A STEP WE WOULD HAVE TO GET THE OK FROM THE NATIONAL OFFICE SAYS MR ALLISON SO INSTEAD MR CLARKE TURNED TO A LEGAL AID GROUP IN WASHINGTON AND A NEW YORK LAW FIRM WHICH IS HANDLING THE SUIT ALSO AFTER TWO UNARMED BLACK MEN WERE KILLED BY LOCAL POLICE IN SEPARATE INCIDENTS IN RECENT YEARS IT WAS MR CLARKE WHO FILED A COMPLAINT WITH THE US JUSTICE DEPARTMENT MR CLARKE SAYS HE DID SO BECAUSE MR ALLISON WAS DRAGGING HIS HEELS HOWEVER MR ALLISON SAYS THAT THE NAACP WAS THE FIRST GROUP TO SPEAK OUT AGAINST THE KILLINGS AND THAT HE DISCUSSED THE SITUATION WITH THE COUNTY PROSECUTOR AND A JUSTICE DEPARTMENT OFFICIAL IN CHICAGO AS FOR MRS SCHOTT MR ALLISON IGNORED URGINGS BY SOME MEMBERS THAT THE CHAPTER DEMAND AS THE NATIONAL NAACP HAS DONE THAT THE TEAM OWNER BE BANNED FROM PROFESSIONAL BASEBALL INSTEAD THE CHAPTER JOINED A COALITION INCLUDING THE URBAN LEAGUE AND THE JEWISH COMMUNITY RELATIONS COUNCIL THAT WON CONCESSIONS FROM HER THEY INCLUDED AN AFFIRMATIVEACTION POLICY FOR THE TEAM MANAGEMENT AND MONEY FOR COLLEGE TUITION FOR ATHLETICALLY TALENTED POOR STUDENTS MR ALLISON SAYS HE DOUBTS THAT GETTING RID OF MRS SCHOTT WOULD HAVE CHANGED THE WAY PEOPLE THINK AND STRESSES THE PRAGMATISM OF THE CONCESSIONS NOW TWO KIDS PROBABLY BLACK WILL BE ABLE TO GO TO COLLEGE WHO COULDN'T GO BEFORE AND BECAUSE SHE MRS SCHOTT HAS BUICK AND CHEVROLET DEALERSHIPS WE'RE TRYING TO GET SOME BLACK SALESMEN HIRED HE SAYS DOROTHY COLEMAN A 46YEAROLD SCHOOL COUNSELOR WHO BACKED HARSHER TREATMENT OF MRS SCHOTT HAS TWICE RUN FOR CHAPTER PRESIDENT AGAINST MR ALLISON AND LOST MESSY CHARGES HAVE BEEN TRADED MS COLEMAN SAYS MR ALLISON'S AUTONOMY AND AN IMAGE OF A CHAPTER CLOSED TO ALL BUT OLDER NONCONFRONTATIONAL VIEWS HAVE LED SOME CRITICS TO QUIP THAT NAACP STANDS FOR NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF CERTAIN PEOPLE SHE WANTS TO INCREASE MEMBERSHIP AND REVITALIZE THE ORGANIZATION AGGRESSIVELY MONITORING SCHOOLS WHERE BLACK STUDENT SUSPENSION AND DROPOUT RATES ARE HIGH AND OVERSEEING BANK LENDING PRACTICES AND CORPORATE HIRING MR WILLIAMS OF IMPACT RAN ON HER SLATE LAST MONTH MS COLEMAN PUBLICLY AIRED THE CHAPTER'S INTERNAL STRIFE IT IS TIME FOR THE BABY BOOMERS TO TAKE CHARGE SHE WROTE IN AN OPED PIECE IN THE CINCINNATI ENQUIRER WE NEED ACTION PEOPLE STILL TURN TO THE NAACP BRANCH FOR ACTION DURING A THREEHOUR INTERVIEW RECENTLY MR ALLISON WAS INTERRUPTED BY 10 PHONE CALLS MOSTLY FROM PEOPLE WITH JOBDISCRIMINATION COMPLAINTS TWO MEMBERS OF THE LABOR AND INDUSTRY COMMITTEE WHO HAD WORKED A FULL DAY AT THEIR PAYING JOBS ANSWERED OTHER PHONES AND CONDUCTED INTERVIEWS THEY HAVE BEEN SUCCESSFUL THEY SAY IN GETTING PEOPLE HIRED AND PROMOTED AND HAVE WON THE TRANSFER AND DISMISSAL OF PROBLEM SUPERVISORS THE CHAPTER'S HEADQUARTERS ARE IN THE GROUND FLOOR OF AN APARTMENT COMPLEX IN A NEIGHBORHOOD NOT FAR FROM DOWNTOWN MR ALLISON A SCRAPPY STOCKY MAN IS VIEWED BY SOME IN THIS CITY AS EFFECTING A MEASURE OF CHANGE NATHANIEL JONES WHO SITS ON THE US APPEALS COURT HERE AND WHO ONCE WAS CHIEF COUNSEL FOR THE NAACP NATIONAL BODY SAYS PEOPLE KNOW THAT FRANK ALLISON WILL BE FUSSING ABOUT SOMETHING WITH THEM IF THEY DON'T DO RIGHT AND SOME DO RIGHT TO AVOID BEING EXCORIATED NOT LONG AGO AFTER MR ALLISON COMPLAINED THE SCHOOL BOARD QUICKLY ABANDONED A PLAN TO ELIMINATE ITS AFFIRMATIVEACTION COMMITTEE MR ALLISON WHO WORKS FULL TIME WITH A PRIVATE JOBTRAINING PROGRAM SAYS HE WOULD LIKE TO DO MORE BUT EVERYONE IN THE ORGANIZATION IS A VOLUNTEER EXCEPT FOR TWO PAID PARTTIME OFFICE HELPERS I GET AS MUCH TIME AS PEOPLE CAN GIVE ME HE SAYS ADDING THAT HE EITHER COMES TO THE OFFICE AT 6 AM BEFORE WORK OR COMES AFTER WORK AND OFTEN STAYS LATE INTO THE NIGHT HE HAD A HEART ATTACK IN 1991 AND SAYS MY WIFE DESERVES TO SEE ME AT HOME SOMETIMES WHEN I'M NOT TIRED THE CHAPTER IS FINANCIALLY HEALTHY AND MEMBERSHIP NUMBERS MORE THAN 1000 MR ALLISON SAYS HE STRIKES BLOWS WHEN HE CAN LAST YEAR WHEN A LARGE DOWNTOWN HOTEL THAT USUALLY IS HOST TO THE NAACP'S ANNUAL FUNDRAISING DINNER DIDN'T PLAN TO HIRE AS MANY BLACK WAITERS AS HE WANTED MR ALLISON TOOK ACTION HE RENTED A BALLROOM FOR THE EVENT HIRED 35 BLACK WAITERS A BLACK CATERER AND A BLACK PRINTER TO PRINT THE PROGRAMS EVERYBODY WALKED OUT OF THERE WITH MONEY HE SAYS AND THE ORGANIZATION SAVED MONEY TOO TO THOSE WHO SAY HE IS NOT AGGRESSIVE ENOUGH MR ALLISON ANSWERS YOU GET MORE FLIES WITH SUGAR THAN VINEGAR EVEN THOUGH YOU MAY HATE FLIES THAT KIND OF HOMESPUN PHILOSOPHY DOESN'T ASSUAGE MS COLEMAN SHE CLAIMS THAT 85 YOUNG PEOPLE WERE READY TO VOTE IN HER CAMPAIGN FOR CHAPTER PRESIDENT WHEN SHE WAS TOLD THEY COULD ONLY VOTE IN YOUTH CHAPTER ELECTIONS SHE SAYS SHE HAS ASKED THE NATIONAL OFFICE FOR CLARIFICATION ON THAT POINT SOME YOUNG PEOPLE WERE TURNED AWAY AT THE DOOR SHE SAYS WE NEED TO FIND A WAY TO LET THEM IN 9304090058 930409 THIRD ITALIAN ENVOY IS HELD INVESTIGATED IN FOREIGNAID PROBE SPECIAL TO THE WALL STREET JOURNAL ROME ITALY'S ENVOY TO ARGENTINA WAS ARRESTED YESTERDAY THE THIRD AMBASSADOR TO COME UNDER INVESTIGATION IN A FOREIGNAID SCANDAL AMBASSADOR CLAUDIO MORENO WHO RETURNED TO ITALY WEDNESDAY NIGHT WAS TAKEN TO A POLICE STATION AFTER BEING FORMALLY NOTIFIED BY THE ROME PROSECUTOR LEADING THE SCANDAL PROBE THAT HE IS UNDER INVESTIGATION THE ANSA NEWS AGENCY REPORTED EARLIER ANSA REPORTED THAT POLICE SEARCHED MR MORENO'S HOUSE IN ROME AND REMOVED DOCUMENTS PROSECUTORS ARE ALSO INVESTIGATING ITALY'S AMBASSADOR TO INDONESIA AND LAST MONTH THE AMBASSADOR TO TWO ROMEBASED UN AID AGENCIES WAS ARRESTED THE SCANDAL ONE OF MANY SHAKING ITALY'S GOVERNMENT CENTERS ON CONSTRUCTION PROJECTS IN DEVELOPING COUNTRIES ESPECIALLY IN AFRICA AND ASIA INVESTIGATORS SUSPECT THAT CONTRACTORS PAID MILLIONS OF DOLLARS TO ITALIAN POLITICIANS OR THEIR POLITICAL PARTIES IN ORDER TO WIN CONTRACTS MANY OF THE PROJECTS SUCH AS HIGHWAYS WERE NEVER FINISHED OR WERE COMPLETED AT A MUCH HIGHER COST THAN PLANNED 9304090057 930409 BUSINESS BRIEF ENGELHARD CORP CHEMICAL PRODUCTS COMPANY EXPECTS EARNINGS DECLINE ENGELHARD CORP SAID IT EXPECTS TO REPORT A DECLINE IN FIRSTQUARTER EARNINGS REFLECTING ECONOMIC WEAKNESS IN EUROPE AND JAPAN AND SOFT PRECIOUSMETAL MARKETS ENGELHARD SHARES FELL 2 AFTER THE ANNOUNCEMENT CLOSING AT 38 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE PROVIDER OF SPECIALTY CHEMICAL PRODUCTS AND PRECIOUSMETALS MANAGEMENT SERVICES PREDICTED QUARTERLY PERSHARE EARNINGS WILL BE LOWER THAN THE 33 CENTS REPORTED A YEAR EARLIER FOR THE FULL YEAR THOUGH THE ISELIN NJ COMPANY SAID IT EXPECTED EARNINGS BEFORE SPECIAL ITEMS TO EXCEED ITS 1992 RESULTS 9304090056 930409 BUSINESS BRIEF MARGARETTEN FINANCIAL CORP LOAN APPLICATIONS JUMP DRIVEN BY REFINANCING BOOM MORTGAGE BANKING COMPANY MARGARETTEN FINANCIAL CORP SAID MARCH LOANAPPLICATION VOLUME TOTALED 16 BILLION MORE THAN DOUBLE THE YEAREARLIER VOLUME OF 758 MILLION AND MORE THAN 55 ABOVE FEBRUARY'S 1 BILLION LEVEL THE PERTH AMBOY NJ COMPANY SAID RETAIL LOAN APPLICATIONS IN MARCH TOTALED 11 BILLION OF WHICH 52 WERE REFINANCES WHOLESALE LOAN APPLICATIONS TOTALED 533 MILLION LOW INTEREST RATES HAVE STIRRED INTENSE INTEREST AMONG HOME OWNERS IN ARRANGING NEW MORTGAGES MARGARETTEN SAID ITS SERVICING PORTFOLIO AT MARCH 31 WAS 147 BILLION COMPARED WITH 46 BILLION A YEAR EARLIER 9304090055 930409 BUSINESS BRIEF 3I GROUP PLC CHAIRMAN RESIGNS IN WAKE OF DECISION ON STOCK PLAN THURSDAY 3I SAID ITS MAJOR SHAREHOLDERS AGAIN HAVE INDICATED THAT PLANS TO SEEK A STOCK EXCHANGE LISTING SHOULD BE DEFERRED FOR THE TIME BEING MR WHEATLEY WHO HAD BEEN THE SENIOR LONDON PARTNER FOR ACCOUNTANTS PRICE WATERHOUSE WAS APPOINTED CHAIRMAN ONLY LAST APRIL TO GUIDE 3I THOUGH THE PLANNED STOCKMARKET LISTING AND 3I SAID THURSDAY HE CITED THE CHANGED CIRCUMSTANCES FOR HIS DECISION TO RESIGN MR WHEATLEY WILL BE SUCCEEDED AT 3I BY DEPUTY CHAIRMAN MAX WILLIAMS UNTIL A SUCCESSOR IS APPOINTED 3I SAID 9304090054 930409 ADD HOOKS AND YOU MIGHT HANG A DOZEN ON YOUR CHRISTMAS TREE BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL THE LEADING US MAKER OF EGGCOLORING KITS IS PROMOTING EASTER EGGS FOR ALL SEASONS SOME PEOPLE THINK THE IDEA IS A LITTLE BIT CRACKED TO INCREASE SALES PAAS SEASONAL PRODUCTS A UNIT OF SCHERINGPLOUGH CORP THAT SELLS 20 MILLION EGGCOLORING KITS ANNUALLY IS LAUNCHING WHAT IT CALLS A MULTIFACETED CAMPAIGN SHOWCASING HOW CONSUMERS CAN EGGSPRESS' THEMSELVES THROUGH EGG ART WE WANT TO MAKE EASTER EGGS A YEARROUND CRAFT A COMPANY SPOKESMAN SAYS NOTING THAT PAAS PRODUCTS WILL SOON BE AVAILABLE ALL YEAR LONG AT SUPERMARKETS DRUG AND DISCOUNT STORES EVERYWHERE THE CAMPAIGN INCLUDES A FREE 32PAGE GREAT EGGSPRESSIONS ACTIVITY BOOK THAT PITCHES THE FULL PAAS LINE OF EGGDECORATING KITS ONE FOR INSTANCE TEACHES EGG ARTISTS HOW TO DEPICT BILL CLINTON THE COUNTRY'S TOP EGGSECUTIVE PAAS ALSO IS SPONSORING AN EGGART CONTEST SUBMISSION DEADLINE MAY 30 ENTRIES WILL BE JUDGED IN SIX CATEGORIES INCLUDING HUMOR PROSOCIAL MESSAGES AND MOTIVATIONAL THE GRAND PRIZE IS A SEVENDAY CARIBBEAN CRUISE IT'S HOPED THAT THE BOOK AND CONTEST WILL INTRODUCE EGG ART TO A WIDER AUDIENCE SAYS JULIE STEPHANI EDITOR OF CRAFTS 'N THINGS MAGAZINE AND PRESIDENT OF THE SOCIETY OF CRAFT DESIGNERS EGG ARTISTS HAVE BEEN AROUND SINCE AT LEAST 3000 BC WHEN THE PERSIANS COLORED EGGS TO CELEBRATE SPRING THE PRACTICE MOREOVER IS POPULAR IN SOME PARTS OF THE WORLD SUCH AS EASTERN EUROPE BUT KEITH STUPELL A FINEGIFT RETAILER IN NEW YORK WHO SELLS ALL KINDS OF DECORATIVE EGGS SAYS I DON'T KNOW WHETHER IT'S GOING TO CATCH ON IN 20THCENTURY AMERICA IT CERTAINLY WON'T CATCH ON WITH JANE SCHROEDER OWNER OF MY SECOND HOME A DAYCARE CENTER IN TOLEDO OHIO MS SCHROEDER PLANS TO CELEBRATE EASTER TODAY WITH A 48EGG COLORING PARTY FOR SEVEN CHILDREN BUT SHE CALLS EGGCOLORING A NIGHTMARE EXPLAINING DYE GETS ALL OVER EVERYTHING THE EGGS CRACK THE KIDS EAT THEM AND THROW THEM YOU HAVE TO HAVE A SPARE DOZEN IN THE FRIDGE JUST TO REPLACE THE CASUALTIES MARGARET BOVA A MOTHER OF TWO IN MILLBROOK NY OBJECTS TO ALLSEASON EGGCOLORING FOR ANOTHER REASON THE MESS YOU CAN CLEAN UP SHE SAYS BUT IF IT WAS SOMETHING THAT YOU DID YEARROUND IT WOULDN'T BE SPECIAL IT WOULD BE LIKE OPENING CHRISTMAS PRESENTS EVERY DAY 9304090053 930409 BUSINESS AS WAR CORPORATE MISFITS' WHO RUN CABLETRON PLAY A ROUGH GAME THEY EXHORT STAFF TO BATTLE FIRE FREELY GO ALLOUT TO PLEASE THE CUSTOMER NO CHAIRS IN MEETING ROOMS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL ROCHESTER NH EMPLOYEES AT CABLETRON SYSTEMS INC DON'T SOON FORGET THEIR FIRST ENCOUNTER WITH THE BOSS CHIEF EXECUTIVE S ROBERT LEVINE ONCE STARTLED SALES RECRUITS AT THE END OF A FOULMOUTHED PEP TALK BY PLUNGING A HUGE COMBAT KNIFE INTO A BEACH BALL EMBLAZONED WITH THE NAME OF THE FIRM'S ARCHRIVAL LET'S GET 'EM HE CRIED OTHERS RECALL HOW THE SHORT MUSCULAR CEO ENTERTAINED SALESPEOPLE ON HIS YACHT BY LEADING THEM IN BAWDY SONGS WHILE WEARING A WOMAN'S BATHING SUIT ANOTHER TIME MR LEVINE IN LEATHER BIKER REGALIA OFFERED 100 TO ANYONE WHO COULD CHUG BEER FASTER THAN HE COULD HE PAID OUT 300 NOT YOUR AVERAGE CORPORATE EXECUTIVE SAYS MARTY HESS A FORMER CABLETRON SALESMAN AND HE'D TAKE THAT AS A COMPLIMENT MR LEVINE'S BIZARRE STYLE OF MOTIVATING HIS TROOPS SETS THE TONE FOR AN UNORTHODOX AND FIERCELY AGGRESSIVE APPROACH TO BUSINESS AT CABLETRON IT IS ONE THAT SEEMS TO BE WORKING CABLETRON IS ONE OF THE HOTTEST COMPANIES IN THE EXPLOSIVE MARKET FOR TECHNOLOGY THAT TIES DESKTOP COMPUTERS INTO OFFICE NETWORKS HELPED BY A STEADY FLOW OF NEW PRODUCTS AND A PASSION FOR CUSTOMER SERVICE THE COMPANY HAS LIFTED ITS ANNUAL SALES 16FOLD IN FIVE YEARS TO 418 MILLION FOR THE YEAR ENDED FEB 28 THAT PUTS IT JUST AHEAD OF SYNOPTICS COMMUNICATIONS INC THE INDUSTRY PIONEER AND SYMBOLIC RECIPIENT OF MR LEVINE'S KNIFE ON ITS WAY UP CABLETRON HAS INFURIATED COMPETITORS WITH STREETFIGHTING SALES TACTICS DRIVEN OFF SOME EMPLOYEES WHO DIDN'T FIT IN AND SUMMARILY FIRED OTHERS BUT ITS UNSUBTLE MANAGEMENT METHODS SHOW THERE ARE PATHS TO SUCCESS THAT AREN'T TAUGHT IN BUSINESS SCHOOL IT'S A UNIQUE CASE STUDY PROVING AGAIN THE CLASSICAL BUSINESS MODEL ISN'T THE ONLY ONE THAT WORKS SAYS WILLIAM R BECKLEAN AN ANALYST WITH HANCOCK INSTITUTIONAL EQUITY SERVICES IN BOSTON CRAIG R BENSON CABLETRON'S CHAIRMAN DESCRIBES HIMSELF AND MR LEVINE AS CORPORATE MISFITS WHO REJECT MUCH OF WHAT IS STANDING OPERATING PROCEDURE IN MAINSTREAM COMPANIES AT MR BENSON'S FORMER JOB HE SAYS VICE PRESIDENTS WASTED ALL THEIR TIME IN ENDLESS MEETINGS CABLETRON HAS NO VICE PRESIDENTS IN FACT IT HAS ALMOST NO MIDDLE MANAGEMENT AND IT DISCOURAGES MEETINGS OF MORE THAN A FEW MINUTES MR BENSON FEELS SO STRONGLY ABOUT KEEPING THEM BRIEF THAT SOME OF THE COMPANY'S CONFERENCE ROOMS HAVE NO CHAIRS ONLY WAISTHIGH TABLES THOUGH ANALYSTS APPLAUD THE COMPANY'S HARDCHARGING WAYS MANY EMPLOYEES SEE A DARKER SIDE THE PHILOSOPHY WAS MANAGEMENT BY INTIMIDATION AND FEAR SAYS KELLY NOSEWORTHY A FORMER SALESMAN EXPRESSING A SENTIMENT WIDELY SHARED IN INTERVIEWS WITH 22 OTHER EXEMPLOYEES A WOMAN WHO WORKED IN CABLETRON'S TELEPHONESALES OPERATION RECALLS AN EXTREME PRESSURECOOKER SITUATION IN WHICH YOU NEVER KNEW IF IT WOULD BE YOUR LAST DAY BECAUSE TELEMARKETERS WERE OFTEN DISMISSED WITHOUT WARNING A YOUNG SALESMAN WHO EARNED MORE THAN 100000 A YEAR SAYS HE WAS FIRED TWO YEARS AGO FOR ARRIVING 30 MINUTES LATE TO A DAYLONG TRAINING SESSION IT HURT BECAUSE I GAVE MY HEART AND SOUL TO THEM FOR NEARLY FIVE YEARS ON THE ROAD NIGHT AND DAY HE SAYS CABLETRON SAYS THE MAN HAD BEEN WARNED ABOUT BEING LATE ONE EMPLOYEE LIKENS CABLETRON TO A PIRATE SHIP IF YOU WERE IN THE GANG YOU GOT RICH HE SAYS IF YOU WEREN'T YOU WALKED THE PLANK MR BENSON SAYS TURNOVER IN SALES JOBS WAS HIGH AT ONE TIME BUT HAS DECLINED SIGNIFICANTLY IN RECENT YEARS MARK F LAPHAM FORCED OUT AS CHIEF FINANCIAL OFFICER IN 1990 HAS NO HARD FEELINGS IT WAS EXHILARATING WITH THIS ALMOST PATRIOTIC SENSE THAT AMERICAN BUSINESS HAD FORGOTTEN THE FORMULA AND BY GOD WE WERE GOING TO GET IT BACK HE SAYS THERE WAS ENORMOUS INDIVIDUAL RESPONSIBILITY WITH NOWHERE TO HIDE IF YOU MESSED UP CABLETRON CAN BE FORGIVING OF WILD BEHAVIOR THAT WOULD BE OUT OF BOUNDS ELSEWHERE A SALESMAN WHO GOT IN A FISTFIGHT WITH A CUSTOMER WAS REPRIMANDED AND THEN GIVEN A PAIR OF BOXING GLOVES BY MR LEVINE AT A MOCK AWARD CEREMONY THE AGGRESSIVE ATTITUDE ALSO APPLIES TO DECISION MAKING STEPS THAT MIGHT REQUIRE MONTHS AT OTHER COMPANIES ARE OFTEN TAKEN IN DAYS DAVID KIRKPATRICK CHIEF FINANCIAL OFFICER RECALLS THAT MESSRS BENSON AND LEVINE APPROVED THE CONSTRUCTION OF A FACTORY IN SCOTLAND IN TWO SHORT MEETINGS OVER THREE DAYS IN WHICH THEY DIDN'T ASK FOR THE DETAILS SUCH SPEED CAN CAUSE MISTAKES MR LEVINE CONCEDES WE'VE HAD SOME SCREWUPS BUT WE ALSO DON'T SPEND A LOT OF TIME TRYING TO JUSTIFY OUR MISTAKES HE SAYS IF WE'RE WRONG WE ACCEPT IT FIX IT AND MOVE TO THE NEXT PROBLEM CABLETRON WAS BORN IN 1983 WHEN MR LEVINE A 25YEAROLD CABLE SALESMAN FOR HIS FATHER'S COMPANY STUMBLED ON A NEW MARKET SELLING CUSTOMCUT SHIELDED CABLE TO LINK PERSONAL COMPUTERS COMPANIES WERE JUST DISCOVERING THAT PCS WERE MORE USEFUL WHEN HOOKED INTO OFFICE NETWORKS ALLOWING EMPLOYEES TO TAP INTO DATABASES SHARE FILES AND SEND ELECTRONIC MAIL THE CABLE INSTALLER SOON TRANSFORMED ITSELF INTO A HIGHTECH MANUFACTURER DEVELOPING DIAGNOSTIC EQUIPMENT SO USERS COULD FIND AND FIX GLITCHES WITHOUT RIPPING OUT WIRES IT EXPANDED INTO SOCALLED SMART HUBS THE COMPUTERIZED TRAFFIC COPS AT THE HEART OF PC NETWORKS CABLETRON HAD REAL VISION ABOUT WHERE THE MARKET WAS GOING SAYS MARY MODAHL AN ANALYST AT CONSULTANTS FORRESTER RESEARCH INC IN CAMBRIDGE MASS THERE'S ALWAYS BEEN A FEELING OUT THERE THAT THESE GUYS WERE BUMPKINS AND ROOKIES AND COULDN'T MAKE IT IN THE BIG LEAGUES SAYS DONALD MCGUINNESS A CABLETRON DIRECTOR AND VETERAN ELECTRONICS EXECUTIVE BUT SO FAR THEY'VE PROVED EVERYBODY WRONG CABLETRON SHARES HAVE SOARED FROM 1550 EACH AT THE 1989 PUBLIC OFFERING TO 87625 YESTERDAY VALUING THE COMPANY AT ABOUT 25 BILLION THE OVERRIDING THEME AT CABLETRON IS THAT SYNOPTICS IS THE ENEMY AND THE RIVALRY HAS GROWN FAR BEYOND ROUTINE COMPETITION EVERY THURSDAY SALESPEOPLE GET MEMOS PRINTED ON HOT PINK PAPER IN WHICH MR LEVINE EXHORTS THEM TO ATTACK SYNOPTICS IN ONE SUCH MEMO HE MANGLED HISTORY AS HE PARAPHRASED WHAT GEN PATTON SAID TO PRESIDENT HOOVER AFTER DEFEATING THE GERMANS I DON'T WANT TO STOP UNTIL EVERY LAST TRACE OF THAT COMPANY IS WIPED OFF THE FACE OF THIS EARTH AT THE END OF 1991 CABLETRON FOR THE FIRST TIME PULLED SLIGHTLY AHEAD OF SYNOPTICS IN QUARTERLY SALES IN A LETTER TO EMPLOYEES MR BENSON NOW 38 COULDN'T RESIST GLOATING JUST A YEAR AGO THEY WERE CALLING US CLASSLESS GREASE MONKEYS WITH NO TECHNOLOGY TODAY WE ARE THE MARKET LEADER AND THEY ARE GASPING FOR THEIR LIVES HE WROTE LET'S CRUSH THEM NOW THE CALIFORNIA PANSIES HAVE NO IDEA WHAT A REAL BATTLE IS THE RIVALS WHICH REMAIN NECKANDNECK IN SALES ARE OPPOSITES IN ALMOST EVERY WAY SYNOPTICS WAS STARTED IN 1985 BY FORMER XEROX CORP EXECUTIVES USING XEROX TECHNOLOGY AND IS BASED IN SILICON VALLEY CALIF IT HAD PROMINENT VENTURECAPITAL BACKERS AND IS RUN BY A SEASONED CHIEF EXECUTIVE WITH A HARVARD MBA MR LEVINE A C STUDENT AT THE UNIVERSITY OF MIAMI STARTED CABLETRON IN HIS GARAGE AND HE AND MR BENSON HOCKED THEIR HOMES TO FUND THE COMPANY CABLETRON DOES NEARLY ALL OF ITS OWN MANUFACTURING WHILE SYNOPTICS FARMS OUT MOST FACTORY WORK CABLETRON BUILT ITS OWN SALES AND SERVICE OPERATIONS SYNOPTICS WORKS MOSTLY THROUGH DISTRIBUTORS CUSTOMERS SAYS SYNOPTICS'S CEO ANDREW LUDWICK HAVE A CLEAR CHOICE BETWEEN SYNOPTICS AND A JUNKYARD DOG BUT BECAUSE NEITHER COMPANY HAS A DECISIVE TECHNOLOGICAL LEAD CABLETRON'S SERVICE PERHAPS MORE THAN ANYTHING HAS WON IT STRONG CUSTOMER LOYALTY HARRY RAIMO NETWORK MANAGER AT HARVARD COMMUNITY HEALTH PLAN IN BOSTON SAYS CABLETRON WILL DO WHATEVER IT TAKES TO GET A NETWORK BACK UP AGAIN EVEN IF THE PROBLEM HAS NOTHING TO DO WITH THEM AT ROYAL BANK OF CANADA COMPUTER MANAGER MICHAEL ROSS SAYS CABLETRON WORKED AROUND THE CLOCK ONE WEEKEND IN NIGHTMARE CONDITIONS TO GET A NEW NETWORK RUNNING THEY WEREN'T AFRAID TO GET THEIR HANDS DIRTY WE DEMAND THAT PEOPLE CARE ABOUT CUSTOMERS BEYOND WHAT OTHER COMPANIES EXPECT MR LEVINE SAYS IF YOU'RE NOT WILLING TO STAY AFTER 5 O'CLOCK WHEN A CUSTOMER HAS A PROBLEM YOU DESERVE TO BE SCARED FOR YOUR JOB STILL SOME BUYERS ARE TURNED OFF BY CABLETRON'S AGGRESSIVENESS THE DAYS OF THE HARD SELL ARE GONE THE DECIDING FACTOR TODAY IS LONGTERM TECHNOLOGY STRATEGY SAYS A NETWORK MANAGER AT A LARGE LOS ANGELES HOSPITAL WHO CHOSE SYNOPTICS OTHERS WORRY ABOUT THE MATURITY OF CABLETRON'S YOUNG MANAGEMENT COMPETITORS SAY THE COMPANY TOO OFTEN CROSSES THE LINE WITH ITS HARDBALL TACTICS FOR EXAMPLE BY USING OUTDATED MODELS OF RIVAL PRODUCTS IN TRADESHOW DEMONSTRATIONS AND ANNOUNCING PRODUCTS THAT ARE FAR FROM READY FOR SALE SYNOPTICS OFFICIALS SUSPECT THAT CABLETRON AFTER ITS SALESPEOPLE SUGGESTED TO CUSTOMERS THAT THEY TEST BOTH COMPANIES' 800 LINES TO SEE WHICH WAS MOST RESPONSIVE CHOKED SYNOPTICS'S CUSTOMERSERVICE LINES WITH CALLS FOR SEVERAL WEEKS CABLETRON DENIES IT OBVIOUSLY SOMEBODY WAS DOING IT BUT IT WASN'T US SAYS MR BENSON CABLETRON OFFICIALS ADMIT USING OLD SYNOPTICS EQUIPMENT AT A TRADE SHOW LAST YEAR BUT SAY THEY DIDN'T KNOW NEW PRODUCTS WERE OUT AS FOR PROMISING PRODUCTS BEFORE THEY ARE READY CABLETRON SAYS IT DOESN'T ANNOUNCE ANYTHING IT CAN'T SHIP IN 90 DAYS BUT CONCEDES IT HAS ON A FEW OCCASIONS PROMISED CUSTOMERS GOODS IT COULDN'T DELIVER ON TIME FOR EXAMPLE CABLETRON WON A CONTRACT FROM WALMART STORES INC BY SHARPLY UNDERBIDDING SYNOPTICS BUT THEY MADE TECHNICAL COMMITMENTS TO US THAT THEY LATER ADMITTED THEY COULDN'T LIVE UP TO SAYS A WALMART MANAGER IT MADE US THINK TWICE ABOUT THEM AS A PARTNER WALMART TURNED THE 6 MILLION ACCOUNT OVER TO SYNOPTICS CABLETRON SAYS THE NEW TECHNOLOGY WAS DELAYED IN DEVELOPMENT SOME COMPANIES THAT HAVE WORKED WITH CABLETRON ALSO COMPLAIN THEY'LL USE DISTRIBUTORS IF IT GETS THEM IN THE DOOR THEN THEY GO BEHIND THEIR BACK AS SOON AS THE ACCOUNT IS WON SAYS JAMES WALKER OF SOUTHWEST CONNECTIONS SYSTEMS INC A DISTRIBUTOR IN PHOENIX MR WALKER SAYS HE STOPPED WORKING WITH CABLETRON IN 1989 ANOTHER DISTRIBUTOR HIGHTECH ASSOCIATES ALBUQUERQUE NM FILED A CIVIL ANTITRUST SUIT AGAINST CABLETRON LAST YEAR HIGHTECH CLAIMS CABLETRON USED IT TO GET BUSINESS AT LOS ALAMOS NATIONAL LABORATORY THEN TOOK OVER THE ACCOUNT CABLETRON DENIES ANY IMPROPER DEALINGS WITH DISTRIBUTORS AND SAYS HIGHTECH FILED ITS SUIT ONLY AFTER CABLETRON SUED THE DISTRIBUTOR IN A PAYMENT DISPUTE BUT THE MANUFACTURER ACKNOWLEDGES IT HAS DELIBERATELY REDUCED ITS RELIANCE ON DISTRIBUTORS SAYING THE REASON IS TO ENSURE BETTER CUSTOMER SERVICE THE HOSTILITY TO MIDDLEMEN COMES THROUGH IN INTERNAL MEMOS IN ONE MR LEVINE WROTE I HAVE HAD IT WITH DISTRIBUTORS AND DEALERS HE SAID ANY DISTRIBUTOR WHO SEEKS A DISCOUNT PRICE PROMISING TO DO A LOT OF BUSINESS IS A LYING SACK OF ELEPHANT SPROF CABLETRON ALSO PLAYS HARDBALL IN ITS HOME STATE OF NEW HAMPSHIRE WHERE ITS 2400PERSON PAYROLL IS ONE OF FEW CURRENTLY GROWING MR BENSON LAST YEAR WAS CRITICIZED FOR SOLICITING DONATIONS TO A REPUBLICAN GUBERNATORIAL CANDIDATE WITH A HEAVYHANDED LETTER TO SUPPLIERS WARNING THAT CABLETRON CANNOT BE SUCCESSFUL WITH SUPPLIERS WHO ONLY WANT A ONEWAY RELATIONSHIP THE CONTRIBUTIONS WERE RETURNED AFTER THEY BECAME AN ISSUE CABLETRON'S SUCCESS HAS MADE MR LEVINE AND MR BENSON WEALTHY THEY RECEIVED A TOTAL OF 322 MILLION BY SELLING SOME OF THEIR STOCK AT THE INITIAL OFFER AND TWO LATER ONES THEIR REMAINING COMBINED 38 STAKE HAS A MARKET VALUE OF 940 MILLION THE TWO MEN ALMOST SOLD OUT PREMATURELY BUT DIDN'T THANKS IN PART TO THE PERSONALITY OF MR LEVINE WHOSE ANTICS HAVE INCLUDED USING A TANK HE OWNS TO CHASE A DELIVERY MAN A YEAR BEFORE GOING PUBLIC MESSRS LEVINE AND BENSON AGREED TO SELL CABLETRON TO A BRITISH COMPANY FOR LESS THAN 100 MILLION AND TO STAY ON TO RUN THINGS BUT THE WOULDBE BUYER UNEASY ABOUT MR LEVINE SENT A PSYCHOLOGIST TO INTERVIEW HIM HE ASKED ME WHAT I WOULD DO IF THEY TOLD ME TO DO SOMETHING I DISAGREED WITH MR LEVINE SAYS I GUESS I SAID I'D TELL 'EM TO GO F THEMSELVES I COULDN'T HELP MYSELF I'VE ALWAYS HAD A REAL PROBLEM WITH AUTHORITY 9304090052 930409 RETAILING SEARS'S MAKEOVER INTO A DEPARTMENT STORE CALLS FOR ENHANCING THE ROLE OF COSMETICS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL SEARS THE STORE THAT SELLS DIE HARD BATTERIES AND WEATHERBEATER PAINT WANTS TO SELL FINE PERFUME MAKEUP AND BATH OIL TOO THE EFFORT IS PART OF SEARS ROEBUCK & CO'S OWN FACELIFT ITS 4 BILLION EFFORT TO TRANSFORM ITS STRUGGLING GENERAL MERCHANDISE RETAILER INTO A MODERATELY PRICED DEPARTMENTSTORE CHAIN SUCCESS AT THE COSMETICS COUNTER COULD GIVE SEARS THE CACHET IT SEEKS AND EQUALLY IMPORTANT PERMIT IT TO HARVEST THE HEALTHY PROFITS THAT COSMETICS AND FRAGRANCES OFTEN BRING COSMETICS ARE DEFINITELY MISSING IN WHAT WE OFFER THE CUSTOMER SAYS JANICE PAGE THE SEARS VICE PRESIDENT IN CHARGE OF THE COSMETICS MAKEOVER CURRENTLY SEARS SELLS COSMETICS AT 17 OF ITS 860 STORES BUT THE SELFSERVICE OPERATIONS PEDDLE MASSMARKET BRANDS LIKE MAYBELLINE AND REVLON THAT ARE ALSO SOLD THROUGH DRUGSTORES DISCOUNT STORES AND SUPERMARKETS WHAT MS PAGE HOPES TO DO IS PLACE THE COSMETICS COUNTER FRONT AND CENTER IN THE STORE AND BUILD A BUSINESS THAT ACCOUNTS FOR ABOUT 10 OF STORE SALES THE TASK IS DAUNTING SELLING COSMETICS IS ONE OF THE MOST COMPLEX AREAS OF RETAILING OFTEN REQUIRING RETAILER AND MANUFACTURER TO WORK CLOSELY ON A NUMBER OF FRONTS FROM SALES TRAINING TO CREATING JUST THE RIGHT AMBIANCE ON THE SALES FLOOR COSMETICS IS TOUGH EVEN FOR THOSE WHO HAVE BEEN IN IT FOR DECADES AND IT APPEARS TO BE ESPECIALLY DIFFICULT THESE DAYS FOR DEPARTMENT STORES WHOSE GROWTH HAS BEEN SLOWER THAN THE OVERALL MARKET'S BETWEEN 1985 AND 1992 TOTAL COSMETICS SALES GREW 34 BUT THE DEPARTMENTSTORE SEGMENT ROSE ONLY 25 MEANWHILE DISCOUNT STORES SUCH AS KMART AND WALMART AND THE BURGEONING INDUSTRY OF STANDALONE DISCOUNT COSMETIC STORES HAVE INCREASED THEIR SHARE OF SALES IT'S A HIGHRISK HIGHSTAKES BUSINESS SAYS SARA LAOR AN INDUSTRY ANALYST FOR KLINE & CO A FAIRFIELD NJ BUSINESS CONSULTING FIRM THE INTENSE COMPETITION RECENTLY CLAIMED A VICTIM DAYTON HUDSON CORP'S MERVYN'S DEPARTMENTSTORE UNIT THE COMPANY QUIT THE BUSINESS IN FEBRUARY A VICTIM OF MASS MARKETERS ON THE LOWER END OF THE PRICE SPECTRUM AND OTHER DEPARTMENT STORES ON THE UPPER END MERVYN'S MODERATEINCOME CUSTOMERS HAVE MUCH IN COMMON WITH THE CUSTOMER SEARS IS TARGETING A MIDDLEINCOME WOMAN WHO ALREADY SHOPS AT SEARS INDUSTRY OFFICIALS SAY SEARS IS HOPING TO EMULATE ANOTHER RIVAL'S SUCCESS IN THE COSMETICS ARENA JC PENNEY CO WHICH HAS BUILT A THRIVING COSMETICS BUSINESS PENNEY HAS TRANSFORMED A DOWNSCALE MOSTLY SELFSERVICE COSMETICS COUNTER INTO AN ALMOST GLITZY EMPORIUM BY SIGNING SUCH HIGHPRICED FRAGRANCE LINES AS CHANEL AND SERVING AS THE EXCLUSIVE US OUTLET FOR EUROPEAN COSMETIC LINES LIKE FERNAND AUBRI OF FRANCE IN ITS EFFORTS TO WOO MANUFACTURERS SEARS HAS HIRED MARGARET HAYES AS A CONSULTANT MS HAYES IS A FORMER SAKS FIFTH AVENUE EXECUTIVE CREDITED WITH BRINGING INNOVATIVE APPROACHES TO THAT UPSCALE DEPARTMENTSTORE CHAIN'S COSMETICS BUSINESS HER MISSION IS TO HELP SEARS CARVE OUT A SEGMENT OF THE COSMETICS MARKET SOMEWHERE BETWEEN UPSCALE DEPARTMENT STORES THAT SELL MOISTURIZERS FOR 40 A JAR AND SUCH DISCOUNTERS AS KMART SEARS IS BANKING THAT MS HAYES'S KNOWLEDGE AND PRESTIGE IN THE BUSINESS SHE ALSO IS PRESIDENT OF A SOCIETY OF WOMEN EXECUTIVES WILL HELP SEARS LAND SOME IMPORTANT BRANDS COMPANY OFFICIALS WON'T SAY WHICH BRANDS THEY WANT TO CORRAL BUT DON'T EXPECT TO FIND CHANEL NO 5 ON THE SHELVES WE'RE NOT THINKING ABOUT SEARS AT THIS TIME SAYS ARIE L KOPELMAN PRESIDENT OF CHANEL INC HE SAYS THE COMPANY'S STRATEGY IN RECENT YEARS HAS BEEN TO REDUCE AND UPGRADE THE OUTLETS FOR ITS PERFUME COSMETICS AND APPAREL ALTHOUGH THE COMPANY CONTINUES TO SELL THROUGH JC PENNEY STORES THAT DOESN'T MEAN SEARS WILL NEVER GET CHANEL'S ACCOUNT HE ADDS YOU NEVER SAY NEVER ESTEE LAUDER INC IS LESS EQUIVOCAL SEARS AND JC PENNEY WOULD PROBABLY NOT BRING US ANYTHING SAYS LEONARD LAUDER CHIEF EXECUTIVE OFFICER SEARS'S GREATEST CHALLENGE IS GETTING WOMEN TO ACCEPT THE STORE AS A PLACE TO SPEND WHAT OFTEN SEEMS AN INORDINATE SUM FOR HOPE IN A JAR IT'S AN ESPECIALLY TRICKY TASK FOR SEARS WHICH INTENDS TO CONTINUE TO SELL WASHERS AND DRYERS AND HARDWARE THAT CONJURES UP THE SPECTER OF SEARS CUSTOMERS ARRIVING TO BUY A CHAINSAW OR KENMORE WASHER ONLY TO BE GREETED BY ENTHUSIASTIC WHITESMOCKED BEAUTY CONSULTANTS HAWKING THE LATEST FRAGRANCES AND SKIN TREATMENTS MS PAGE CONTENDS THAT SELLING HARDWARE AND THE LIKE AS WELL AS TRADITIONAL DEPARTMENTSTORE MERCHANDISE WILL HELP NOT HINDER SEARS'S EFFORTS TO SELL COSMETICS IN TODAY'S TIMEPRESSED ENVIRONMENT SHE MAINTAINS SEARS CAN OFFER THE CONVENIENCE OF A ONESTOP SHOP BUT COSMETICS CONSULTANT ALLAN MOTTUS COUNTERS THAT SEARS ROEBUCK IS NOT CONSIDERED A MIDDLE OR UPSCALE DEPARTMENT STORE BY ANYBODY MS PAGE INSISTS THAT WILL CHANGE WHAT SEARS ENVISIONS FOR ITS COSMETICS DEPARTMENT ARE THREE OR FOUR GLASSENCASED ISLANDS HOLDING SKIN TREATMENTS AND PERFUMES PEDDLED BY SWARMS OF BEAUTY ADVISERS INITIALLY FREE MAKEOVERS AND SAMPLES ARE LIKELY TO BE COMMON YOU HAVE TO HAVE SOME THEATER YOU HAVE TO HAVE SOME EXCITEMENT MS PAGE SAYS AND JUST HOW MUCH OF A MAKEOVER IS IN STORE FOR SEARS CONSIDER ONE OF ITS FEW COSMETICS DEPARTMENTS AND ONE OPERATED BY PENNEY IN THE RIVER OAKS MALL IN SUBURBAN CHICAGO THE SEARS STORE HAS JUST ONE GLASSENCASED ISLAND AND ONE SALES CLERK SELLING SUCH MASSMARKET COSMETICS AS L'OREAL ALMAY REVLON AND MAX FACTOR ON A RECENT VISIT THE SALES CLERK WAS HARDLY SWAMPED THERE WERE FEW CUSTOMERS IN HER AREA INSTEAD A GAGGLE OF SHOPPERS WAS CLUSTERED AROUND A MAN DEMONSTRATING A NEW SHARPER KNIFE IN THE KITCHEN DEPARTMENT THAT BORDERS SEARS'S HARDWARE SHOP AT THE JC PENNEY AT THE OTHER END OF THE MALL A HALFDOZEN SALES CLERKS HOVERED AROUND CUSTOMERS IN A COSMETICS DEPARTMENT THREE TIMES THE SIZE OF SEARS'S THEY DEMONSTRATED THEIR WARES ON A SUCCESSION OF EAGER FACES AND ALL THE WHILE CIRCULATED THEIR BUSINESS CARDS THE LINES THE STORE CARRIEDULTIMA II BILL BLASS AND EVEN A SELECTION CALLED KENTE COLLECTION MADE SPECIFICALLY FOR AFRICANAMERICAN WOMEN ARE ALL DEPARTMENTSTORELEVEL PRODUCTS SEARS PLANS AN ADVERTISING BLITZ THIS FALL TO BEGIN REMAKING ITS IMAGE THAT'S JUST ABOUT THE TIME IT SAYS IT WILL HAVE INSTALLED THE NEW COSMETICS COUNTERS AT MORE THAN 20 OF ITS STORES SEARS OFFICIALS DON'T CONSIDER THEIR CHALLENGE INSURMOUNTABLE EVEN THOUGH AN EARLIER EXPERIENCE WITH COSMETICS FAILED IN THE 1970S SEARS BUILT A 125 MILLIONAYEAR COSMETICS BUSINESS BUT A DECADE LATER SALES HAD FALLEN TO HALF THAT IN THE EARLY 1980S THE COMPANY CHANGED ITS STRATEGY TO SELFSERVICE FROM FULLSERVICE TO GAIN SPACE FOR OTHER PRODUCTS IT DROPPED COSMETICS ALTOGETHER IN NEARLY ALL OF ITS STORES IN 1986 BUT EVEN PENNEY'S RELATIVELY SUCCESSFUL COSMETICS EFFORT HAS EXPERIENCED SETBACKS OF A SORT THAT COULD THREATEN SEARS'S NASCENT BID AFTER PENNEY LANDED REVLON'S UPSCALE ULTIMA II COSMETICS LINE TWO YEARS AGO IN A MERCHANDISING COUP UPSCALE DEPARTMENTSTORE OPERATOR RH MACY CO DROPPED THE LINE FROM ITS STORES SEARS OFFICIALS WARY OF SUCH SNOBBERY SUGGEST COSMETICS MAKERS ARE BETTER OFF SELLING TO THEM THAN TO SOME DEPARTMENT STORES INCLUDING MACY'S FEDERATED AND CARTER HAWLEY HALE THAT HAVE BEEN THROUGH CHAPTER 11 BANKRUPTCYLAW FILINGS EXPRESSING WHAT MAY ALREADY BE PART OF SEARS'S PITCH TO COSMETICS MAKERS MS PAGE SAYS WE HAVE A LOT OF STORES AND WE PAY OUR BILLS 9304090051 930409 FORD'S POLING GOT BIG BOOST IN PAY IN 1992 BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL MR POLING WHO HAS SAID HE PLANS TO RETIRE LATER THIS YEAR RECEIVED A SALARY OF 11 MILLION UP FROM 1 MILLION IN 1991 IN ADDITION HE RECEIVED 651000 IN RESTRICTED STOCK AWARDS AND 731000 IN LONGTERM INCENTIVE PLAN AWARDS HE ALSO GOT OPTIONS TO PURCHASE 158000 SHARES OF FORD COMMON DURING THE NEXT FOUR YEARS AT 37 A SHARE WHICH THE AUTO MAKER VALUED AT 18 MILLION FORD CLOSED YESTERDAY AT 54625 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FORD'S TOP FIVE OFFICERS INCLUDING MR POLING RECEIVED 77 MILLION IN TOTAL COMPENSATION IN 1992 UP 46 FROM THE PREVIOUS YEAR ACCORDING TO THE COMPANY'S PROXY STATEMENT TOTAL COMPENSATION INCLUDES SALARIES DEFERRED STOCK AWARDS AND STOCK OPTIONS EXERCISED DURING THE YEAR IN A CYCLICAL INDUSTRY EFFECTIVE LEADERSHIP IN A DOWNTURN IS VITAL TO CORPORATE SUCCESS AND MR POLING HAS PROVIDED THIS LEADERSHIP UNDER EXTREMELY DIFFICULT CIRCUMSTANCES FORD'S COMPENSATION COMMITTEE SAID IN THE PROXY STATEMENT MR POLING WHO IS 67 HAD AGREED TO STAY ON PAST THE NORMAL RETIREMENT AGE OF 65 AT THE REQUEST OF THE BOARD IN 1992 FORD HAD A RECORD NET LOSS OF 739 BILLION LARGELY REFLECTING AN ACCOUNTING CHARGE FOR RETIREE HEALTHCARE COSTS BEFORE THE ACCOUNTING CHARGE FORD HAD A LOSS OF 5018 MILLION LAST YEAR IN 1991 IT POSTED A LOSS OF 226 BILLION FORD'S TOP EXECUTIVES DIDN'T MAKE OUT NEARLY AS WELL AS THOSE AT COMPETING CHRYSLER CORP IN A PRELIMINARY PROXY STATEMENT LAST MONTH CHRYSLER SAID IT GAVE LEE A IACOCCA WHO RETIRED JAN 1 AS CHAIRMAN 11 MILLION IN SALARY AND STOCK AWARDS LAST YEAR MORE THAN TRIPLE HIS 1991 COMPENSATION CHRYSLER ALSO GAVE MR IACOCCA STOCK OPTIONS AND APPRECIATION RIGHTS EXERCISABLE THIS YEAR THAT COULD YIELD HIM BETWEEN 13 MILLION AND 18 MILLION CHRYSLER'S CURRENT CHAIRMAN ROBERT J EATON WHO WAS HIRED AWAY FROM GENERAL MOTORS CORP LAST YEAR RECEIVED 19 MILLION IN SALARY AND STOCK AWARDS PLUS STOCK OPTIONS VALUED AT BETWEEN 5 MILLION AND 185 MILLION GM EXPECTS TO RELEASE ITS PROXY STATEMENT NEXT WEEK ASIDE FROM MR POLING NONE OF THE FORD EXECUTIVES GOT AN INCREASE IN BASE SALARY BUT THEY ALL RECEIVED GENEROUS INCREASES IN DEFERRED STOCK COMPENSATION ALEXANDER J TROTMAN PRESIDENT OF FORD'S AUTOMOTIVE GROUP AND THE LEADING CONTENDER TO SUCCEED MR POLING RECEIVED 988000 IN TOTAL COMPENSATION LAST YEAR UP 65 FROM 1991 THAT INCLUDED THE 217000 MR TROTMAN REALIZED BY EXERCISING STOCK OPTIONS LAST YEAR HE ALSO RECEIVED OPTIONS TO BUY 60000 SHARES AT 37 A SHARE WHICH THE COMPANY VALUED AT 686000 ALLAN D GILMOUR ONE OF TWO VICE CHAIRMEN AT FORD RECEIVED 11 MILLION IN TOTAL COMPENSATION LAST YEAR UP 31 FROM 1991 HE ALSO RECEIVED OPTIONS TO PURCHASE 60000 SHARES OF STOCK DURING THE NEXT FOUR YEARS AT 37 A SHARE WHICH THE COMPANY VALUED AT 686000 FORD'S OTHER VICE CHAIRMAN LOUIS R ROSS TOOK HOME 11 MILLION IN TOTAL COMPENSATION LAST YEAR AN INCREASE OF 23 FROM THE PREVIOUS YEAR HE ALSO RECEIVED OPTIONS TO PURCHASE 50000 SHARES OF STOCK AT 37 A SHARE WHICH THE COMPANY VALUED AT 571500 FORMER FORD PRESIDENT PHILIP E BENTON JR WHO RETIRED JAN 1 RECEIVED 209 MILLION IN TOTAL COMPENSATION LAST YEAR UP 83 FROM 1991 MR BENTON'S COMPENSATION JUMPED SHARPLY BECAUSE HE EXERCISED 555000 IN STOCK OPTIONS LAST YEAR AFTER EXERCISING NONE IN THE PREVIOUS YEAR 9304090050 930409 INTERNATIONAL BRIEF SUN ALLIANCE GROUP PLC COMPANY'S 1992 PRETAX LOSS NARROWED TO 1961 MILLION UK LIFE AND GENERAL INSURER SUN ALLIANCE GROUP PLC SAID ITS PRETAX LOSS NARROWED TO 1296 MILLION 1961 MILLION IN 1992 FROM 4662 MILLION IN 1991 AS UNDERWRITING LOSSES IN BRITAIN WERE CUT TO 190 MILLION FROM 491 MILLION UK LOSSES ON MORTGAGE INSURANCE FELL TO 186 MILLION FROM 320 MILLION THE 1992 LOSS WAS IN LINE WITH PRIOR MARKET ESTIMATES OF BETWEEN 100 MILLION AND 165 MILLION AN UNCHANGED FULLYEAR DIVIDEND OF 1425 PENCE 216 CENTS A SHARE ALSO WAS AS EXPECTED EXPLAINING THE DECISION TO MAINTAIN THE PAYMENT TO SHAREHOLDERS IN THE FACE OF THE THIRD STRAIGHT YEAR OF LOSSES SUN ALLIANCE'S CHIEF EXECUTIVE OFFICER ROGER NEVILLE SAID WE ARE DETERMINED TO MAINTAIN THE PACE OF RECOVERY IN OUR OPERATIONS AND ARE CONFIDENT THAT THIS YEAR WILL SEE A RETURN TO PROFIT 9304090049 930409 BUSINESS BRIEF COMPUTER SCIENCES CORP FIRM GETS FEDERAL CONTRACT VALUED AT UP TO 400 MILLION COMPUTER SCIENCES CORP BEAT OUT GRUMMAN CORP FOR A CONTRACT FROM THE BUREAU OF LAND MANAGEMENT TO DESIGN AND INSTALL A COMPUTER SYSTEM TO MANAGE THE NATION'S PUBLIC LANDS PAPER RECORDS ACCUMULATED OVER 200 YEARS WILL BE CONVERTED TO COMPUTER FILES A COMPANY SPOKESWOMAN SAID THE AGENCY TRACKS MORE THAN ONE BILLION PAGES OF LAND DOCUMENTS THAT SUPPORT 272 MILLION ACRES OF LANDS AND 300 MILLION ACRES OF SUBSURFACE MINERAL ESTATES THE AGENCY VALUED THE CONTRACT AT 138 MILLION THROUGH SEPT 30 THE END OF THE GOVERNMENT'S FISCAL YEAR THE TOTAL VALUE OVER THE CONTRACT'S 10YEAR TERM IS EXPECTED TO BE 400 MILLION ASSUMING EXERCISE OF ALL OPTIONS THE AGENCY SAID THE COMPUTER SYSTEM WILL BE INSTALLED IN 221 AGENCY OFFICES AT 156 SITES MAINLY IN THE WESTERN PART OF THE US COMPUTER SCIENCES OF EL SEGUNDO CALIF WILL OPEN AN OFFICE IN THE DENVER AREA TO SUPPORT THE PROJECT 9304090048 930409 PSYCHIATRIC FIRM SLATES CUTBACKS AND POSTS A LOSS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL COMMUNITY PSYCHIATRIC CENTERS POSTING A LOSS FOR ITS FISCAL FIRST QUARTER SAID IT WILL SHUT DOWN OR SELL SOME OF ITS 53 HOSPITALS AND CUT EMPLOYMENT BY AS MUCH AS 10 AS PART OF A PLAN TO PARE ANNUAL COSTS BY AS MUCH AS 20 MILLION THE CUTBACKS ARE A FIRST FOR THE ONCE FASTGROWING LAGUNA HILLS CALIF PSYCHIATRIC CONCERN DESPITE A STRING OF FINANCIAL REVERSALS AND INDUSTRY CHANGES OVER THE PAST TWO YEARS COMMUNITY PSYCHIATRIC SAID DISCOUNTS FOR ITS GROWING MANAGEDCARE CUSTOMERS SUCH AS THOSE IN HEALTHMAINTENANCE ORGANIZATIONS SHARPLY CUT REVENUE PER PATIENT DAY IN THIS YEAR'S FIRST QUARTER THE COMPANY DIDN'T SAY HOW MANY HOSPITALS WOULD BE CLOSED OR SOLD COMMUNITY PSYCHIATRIC ANNOUNCED THE CUTBACKS ALONG WITH A LOSS OF 379 MILLION OR 88 CENTS A SHARE FOR THE FIRST QUARTER ENDED FEB 28 THE LOSS INCLUDED A 349 MILLION RESTRUCTURING CHARGE EQUAL TO 81 CENTS A SHARE IN THE QUARTER ENDED FEB 29 1992 THE COMPANY REPORTED NET INCOME OF 69 MILLION OR 15 CENTS A SHARE WE BELIEVE THE HOSPITALS TO BE SOLD OR CLOSED CAN NO LONGER BE COMPETITIVE GIVEN THE DEMOGRAPHICS OF THEIR MARKETPLACE THE PROLIFERATION OF LOCAL COMPETITION THE PRESSURES OF MANAGEDCARE PRICING WARS AND OTHER DIFFICULT CONDITIONS SAID RICHARD L CONTE CHAIRMAN AND CHIEF EXECUTIVE OFFICER A SPOKESWOMAN SAID THE AFFECTED HOSPITALS ARE ALL IN THE US BUT SHE DECLINED TO IDENTIFY THEM IN PART BECAUSE THE EMPLOYEES DON'T KNOW YET ROUGHLY A DOZEN PEOPLE AT THE CORPORATE OFFICES INCLUDING A COUPLE OF COMPANY OFFICERS WERE NOTIFIED OVER THE PAST WEEK THAT THEIR JOBS WERE ELIMINATED THE CORPORATE STAFF HAD BEEN ABOUT 70 PEOPLE THE CHARGE REFLECTS THE WRITEDOWN TO ESTIMATED VALUE OF THE AFFECTED HOSPITALS THE WRITEOFF OF PREVIOUSLY CAPITALIZED COSTS ANTICIPATED FUTURE LOSSES UNTIL DISPOSITION AND PROVISIONS FOR SEVERANCE PAY AMONG OTHER THINGS THE COMPANY SAID IN LATE NEW YORK STOCK EXCHANGE TRADING COMMUNITY PSYCHIATRIC STOCK WAS QUOTED AT 11125 A SHARE DOWN 25 CENTS REVENUE IN THE QUARTER EDGED UP TO 847 MILLION FROM 845 MILLION ON HIGHER HOSPITAL ADMISSIONS AND PATIENT DAYS BUT THESE INCREASES WERE OFFSET BY A 91 DROP IN THE AVERAGE REVENUE PER PATIENT DAY TO 448 FROM 493 LENGTH OF STAY FELL TO AN AVERAGE 173 DAYS FROM 18 DAYS A YEAR EARLIER EXCLUDING THE CHARGE THE NET LOSS IN THE QUARTER WAS 3 MILLION OR SEVEN CENTS A SHARE THE LOSS INCLUDED HIGHER STAFFING EXPENSES TO REGAIN MARKET SHARE AND STARTUP COSTS FOR THE COMPANY'S NEW TRANSITIONAL HOSPITALS CORP SUBSIDIARY THE COMPANY HAS BEEN FOCUSING ON EXPANSION OF THE NEW SUBSIDIARY AIMED TOWARD PATIENTS WHO DON'T NEED HOSPITAL CARE BUT NEED MORE ATTENTION THAN A NURSING HOME CAN PROVIDE COMMUNITY PSYCHIATRIC HAS 4000 FULLTIME EMPLOYEES AND ALSO USES MANY PARTTIME WORKERS ITS FACILITIES ARE IN THE US PUERTO RICO AND THE UNITED KINGDOM 9304090047 930409 BUSINESS BRIEF XEROX CORP NEW DOMESTIC UNIT FORMED SUPPLANTS FOREIGN VENDORS XEROX CORP SAID IT PLANS TO CREATE A UNIT IN UTICA NY TO PRODUCE COPIER AND PRINTER COMPONENTS NOW PURCHASED FROM SUPPLIERS IN ASIA AND MEXICO THE NEW UNIT LOW COMPLEXITY MANUFACTURING GROUP INC WILL SUPPLY SIMPLE SUBASSEMBLIES FOR PRINTERS AND COPIERS TO A HIGHTECH XEROX MANUFACTURING CENTER 135 MILES AWAY IN WEBSTER NY A SUBURB OF ROCHESTER WHICH IS WHERE THE COMPANY IS HEADQUARTERED IT SAID THE FACILITY COULD BEGIN OPERATING BY THE SUMMER THE SUBSIDIARY INITIALLY WILL EMPLOY 50 PEOPLE IMPROVE CONTROLS OVER QUALITY AND DELIVERIES AND POSSIBLY SAVE XEROX UP TO 2 MILLION ANNUALLY A SPOKESMAN SAID SUCH SAVINGS WOULD RESULT FROM LOWER TRANSPORTATION COSTS AND WAGE RATES TO BE NEGOTIATED WITH THE AMALGAMATED CLOTHING AND TEXTILE WORKERS UNION XEROX SAID THE PLAN WAS DEVELOPED WITH THE UNION OVER 18 MONTHS IN A JOINT EFFORT TO FIND WAYS TO BUILD DOMESTICALLY THE COMPONENTS IT NOW BUYS FROM FOREIGN VENDORS 9304090046 930409 MARKETING BRIEF NOTED WHO'S NEWS GINA CENTRELLO 33 WAS NAMED EXECUTIVE VICE PRESIDENT AND PUBLISHER OF SIMON & SCHUSTER'S POCKET BOOKS DIVISION FILLING A VACANCY CREATED NEARLY A YEAR AGO WHEN IRWYN APPLEBAUM LEFT AS PUBLISHER TO HEAD BANTAM BOOKS POCKET BOOKS ALSO NAMED WILLIAM R GROSE 52 TO A NEW POSITION AS EXECUTIVE VICE PRESIDENT AND EDITORIAL DIRECTOR HE WAS SENIOR VICE PRESIDENT AND EDITORIAL DIRECTOR MS CENTRELLO WAS A VICE PRESIDENT AND ASSOCIATE PUBLISHER SIMON & SCHUSTER IS A UNIT OF PARAMOUNT COMMUNICATIONS INC 9304090045 930409 INTERNATIONAL BRIEF CIE GENERALE DES EAUX FRENCH CONCERN'S EARNINGS RISE 11 DIVIDEND BOOSTED FRENCH WATER AND MUNICIPAL SERVICES AND CONSTRUCTION GROUP CIE GENERALE DES EAUX SAID NET GROUP PROFIT ROSE 11 TO 29 BILLION FRANCS 529 MILLION IN 1992 IN LINE WITH PROFIT PROJECTIONS MADE LAST YEAR THE COMPANY ALSO INCREASED ITS DIVIDEND 5 TO 43 FRANCS A SHARE REVENUE ROSE 6 TO 143 BILLION FRANCS SLIGHTLY SHORT OF COMPANY PROJECTIONS OF 146 BILLION147 BILLION FRANCS GENERALE DES EAUX SAID IT INVESTED ABOUT 15 BILLION FRANCS IN INDUSTRIAL ACTIVITIES SUCH AS NEW CONCESSION CONTRACTS FOR WATER SERVICES MODERNIZATION AND UPGRADING OF NETWORKS MANAGED BY THE COMPANY THE LEVEL WAS LITTLE CHANGED FROM 1991 THE COMPANY SAID 9304090044 930409 CREDIT MARKETS TREASURY PRICES SURGE AS PRODUCER PRICE DATA OFFER ASSURANCE THAT INFLATION ISN'T A THREAT BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS SOARED AS INVESTORS' FEARS OF INFLATION WERE DEFLATED AT LEAST FOR THE MOMENT BY A FAVORABLE REPORT ON WHOLESALE PRICES THE BENCHMARK 30YEAR TREASURY BOND SURGED 1 1/4 POINTS OR 1250 FOR A BOND WITH A 1000 FACE VALUE TO 103 13/32 DURING A TRADING SESSION ABBREVIATED IN OBSERVANCE OF THE EASTER HOLIDAY THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE PLUNGED TO 685 ITS LOWEST LEVEL IN TWO WEEKS AND DOWN FROM 695 ON WEDNESDAY THE 10YEAR NOTE DROPPED NEARLY 3/4 POINT TO 102 1/32 TO YIELD 597 DOWN FROM 606 MOST WORLD BOND MARKETS WILL BE CLOSED TODAY TREASURYS RALLIED AFTER THE GOVERNMENT REPORTED THAT WHOLESALE PRICES AS MEASURED BY THE PRODUCER PRICE INDEX ROSE 04 DURING MARCH SLIGHTLY MORE THAN HAD BEEN ANTICIPATED BUT TRADERS CONCENTRATED INSTEAD ON THE SOCALLED CORE RATE WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY CATEGORY SINCE THE CORE RATE ROSE JUST 01 WELL BELOW EXPECTATIONS IT PROVIDED A CATALYST FOR THE BOND MARKET RALLY THE BOND MARKET JUST NEEDED A COUPLE OF REASSURING ECONOMIC NUMBERS TO GO UP AND IT GOT THEM SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC THOUGH THE ECONOMY APPEARS TO BE GROWING SLOWLY AND FEW ECONOMISTS ARE PREDICTING SUBSTANTIALLY HIGHER INFLATION THIS YEAR BOND INVESTORS HAVE DEVELOPED A SERIOUS CASE OF INFLATION JITTERS OVER THE PAST MONTH BOND INVESTORS FEAR A RAPIDLY GROWING ECONOMY BECAUSE IT COULD LEAD TO HIGHER INFLATION WHICH EATS AWAY AT THE RETURNS ON THEIR INVESTMENTS THESE WORRIES BEGAN TO PUSH TREASURY YIELDS HIGHER LAST MONTH WHEN THE GOVERNMENT REPORTED A SUBSTANTIAL RISE IN NONFARM PAYROLLS FOR FEBRUARY THE WORRIES INTENSIFIED SHORTLY AFTERWARD WHEN FEBRUARY DATA ON CONSUMER AND WHOLESALE PRICES SUGGESTED AN INCREASE IN INFLATIONARY PRESSURES AND WHEN THE GOVERNMENT REPORTED LAST WEEK AN UPWARD REVISION TO THE FEBRUARY NONFARM PAYROLLS INFLATION TALK BECAME FEVERISH BUT WHILE MANY ECONOMISTS PREDICT THAT INFLATION COULD RISE ABOVE LAST YEAR'S 3 RATE FOR CONSUMER PRICES THEY ARE NOT TOO WORRIED ABOUT A SUBSTANTIAL RISE NOTHING HAS CHANGED ON THE INFLATION FRONT AS FAR AS I'M CONCERNED SAID MR FINE WHO PREDICTS THAT CONSUMER PRICES COULD RISE AS MUCH AS 35 THIS YEAR INFLATION WILL BE HIGHER BUT IT'S NOT GOING TO BE HIGHER ON AN HISTORICAL BASIS SO IT'S NOT THREATENING AND LOW INFLATION IN MOST OTHER INDUSTRIALIZED NATIONS MAKES IT UNLIKELY THAT US INFLATION IS GOING TO TAKE OFF ACCORDING TO MICKEY LEVY CHIEF ECONOMIST AT CRT GOVERNMENT SECURITIES LTD MR LEVY SAID THAT MANY ANALYSTS HAVE DRAMATICALLY UNDERESTIMATED THE EFFECTS OF ECONOMIC WEAKNESS AND THE DECLINE OF INTEREST RATES THROUGHOUT THE INDUSTRIALIZED WORLD DECLINING INTEREST RATES ABROAD GIVE FIRM FOOTING FOR THE US DEBT MARKETS HE SAID EVEN IF CREDIT DEMAND INCREASES HERE HE ADDED IF CREDIT DEMAND IS SLUMPING IN THE REST OF THE WORLD RATES WILL GO LOWER MR LEVY SAID THE YIELD OF THE 30YEAR TREASURY BOND IS LIKELY TO REMAIN IN A NARROW TRADING RANGE OF 675 TO 7 DEPENDING ON THE OUTCOME OF PRESIDENT CLINTON'S PROPOSALS TO CUT THE BUDGET RATES COULD DROP SHARPLY LOWER IF SIGNIFICANT BUDGET CUTS ARE FORTHCOMING ANOTHER FACTOR PUSHING DOWN LONGTERM YIELDS RECENTLY HAS BEEN SPECULATION ABOUT TREASURY PLANS TO RECOMMEND A SHIFT IN THE WAY THE GOVERNMENT BORROWS MONEY PRIVATELY PRODUCED REPORTS RELEASED OVER THE LAST COUPLE OF DAYS HAVE COMMENTED ON THE POSSIBILITY OF A LARGE REDUCTION IN THE ISSUANCE OF LONGTERM DEBT SUCH AS 30YEAR TREASURY BONDS IN FAVOR OF MORE ISSUANCE OF SHORTTERM DEBT SUCH AS THREEMONTH BILLS A REDUCTION IN THE ISSUANCE OF LONGTERM SECURITIES WOULD INCREASE THE VALUE OF THOSE SECURITIES THAT ARE OUTSTANDING THE SPECULATION STEMS FROM ASSUMPTIONS MADE BY THE CLINTON ADMINISTRATION IN ITS ECONOMIC PACKAGE OF SOME 16 BILLION IN SAVINGS RESULTING FROM CHANGES IN THE TREASURY'S BORROWING MIX YESTERDAY BUDGET DIRECTOR LEON PANETTA SAID THAT THE ADMINISTRATION WAS STILL ASSUMING SUCH SAVINGS BUT TREASURY SECRETARY LLOYD BENTSEN SAID THAT THE SPECIFICS OF SUCH A SHIFT REMAIN UNDER STUDY AT THE TREASURY MR BENTSEN ALSO REITERATED HIS PREVIOUSLY STATED POSITION THAT HE DOESN'T EXPECT ANY RADICAL CHANGE IN THE MIX BUT SOME BOND TRADERS BELIEVED THAT YESTERDAY'S EXUBERANCE COULD DETERIORATE AS A WAVE OF NEW TREASURY ISSUES HITS THE MARKET NEXT WEEK IT COULD ALL UNRAVEL NEXT WEEK WITH THE SEVENYEAR NOTE AUCTION SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP NEXT WEEK THE TREASURY IS SLATED TO SELL 975 BILLION OF SEVENYEAR NOTES ACCORDING TO MR COSTAS UNLIKE EARLIER THIS YEAR MUCH OF YESTERDAY'S BUYING WAS DONE BY SPECULATIVE INVESTORS LOOKING FOR QUICK GAINS SUCH INVESTORS WOULD BE QUICK TO SELL THEIR HOLDINGS AT ANY HINT OF WEAKNESS IN THE MARKET WITH THE MARKET CLOSED TODAY INVESTORS WILL HAVE THEIR FINGERS CROSSED THAT TODAY'S CONSUMER PRICE INDEX REPORT WILL BE FAVORABLE SINCE INVESTORS CAN'T REACT TO IT UNTIL MONDAY THE REPORT IS EXPECTED TO SHOW AN INCREASE OF 03 IN CONSUMER PRICES FOR MARCH ACCORDING TO ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT ANYTHING IN EXCESS OF THAT COULD SPARK A SELLOFF IN THE BOND MARKETS COME MONDAY MEANWHILE LATE IN THE DAY THE FEDERAL RESERVE REPORTED THAT THE WIDELY WATCHED MEASURE OF MONEY SUPPLY KNOWN AS M2 ROSE 37 BILLION IN THE WEEK ENDED MARCH 29 THAT PUTS M2 GROWTH RATE AT NEGATIVE 17 FROM THE FOURTHQUARTER BASE OF LAST YEAR FAR BELOW THE FED'S TARGET OF 2 TO 6 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 CORPORATE BONDS JUMPED WITH TREASURYS SETTING THE STAGE FOR BRISK BOND SALES NEXT WEEK SEASONED INVESTMENTGRADE ISSUES ROSE FROM 1/4 POINT TO AS MUCH AS ONE POINT HIGHER BUT VOLUME WAS EXTREMELY THIN TRADERS SAID JUNK BONDS ENDED SLIGHTLY HIGHER ALTHOUGH THE DECLINE IN INTEREST RATES RESULTING FROM THE PRODUCER PRICE REPORT WOULD NORMALLY SPUR CORPORATIONS TO ISSUE DEBT FEW CHOSE TO DO SO GIVEN THE ABBREVIATED TRADING SESSION IN ADVANCE OF THE EASTER HOLIDAY NEXT WEEK'S ISSUANCE OF NEW DEBT HOWEVER COULD BE EXTREMELY STRONG INVESTMENT BANKERS SAID A NUMBER OF WELLKNOWN COMPANIES HAVE REGISTERED SIZABLE SHELF FILINGS RECENTLY INCLUDING INTERNATIONAL BUSINESS MACHINES CORP WHICH FILED FOR 265 BILLION OF DEBT SECURITIES PREFERRED STOCK AND DEPOSITARY SHARES ON TUESDAY YESTERDAY PACIFIC BELL A UNIT OF PACIFIC TELESIS GROUP FILED FOR A SHELF OFFERING OF 1575 BILLION OF DEBT SECURITIES THE COMPANY SAID IT INTENDED TO USE OFFERING PROCEEDS TO REFUND MATURING DEBT AND REPURCHASE AND RETIRE OUTSTANDING DEBT A NUMBER OF NEW JUNK BOND ISSUES WERE PRICED YESTERDAY INCLUDING OFFERINGS FROM DOMTAR INC SUPERMARKET CONCERN PENN TRAFFIC CO AND TUBOSCOPE VETCO INTERNATIONAL INC A PROVIDER OF OIL INDUSTRY SERVICES AND STEELMILL EQUIPMENT ALL THREE DEALS WERE PRICED WITH YIELDS TOWARD THE HIGHER END OF EXPECTATIONS SUGGESTING THAT DESPITE THE HUGE DEMAND FOR HIGHERYIELDING PAPER INVESTORS CONTINUE TO BE ABLE TO COMMAND HIGHER YIELDS FROM ISSUERS A 175 MILLION ISSUE OF DOMTAR NOTES MATURING IN 2001 WAS PRICED AT PAR TO YIELD 12 THE ISSUE IS RATED BA1 BY MOODY'S INVESTORS SERVICE INC SALOMON BROTHERS INC WAS THE LEAD MANAGER FOR THE NONCALLABLE OFFERING DOMTAR HAS INTERESTS IN PAPER PRODUCTS AND PACKAGING PRICES OF MUNICIPAL BONDS SURGED ON THE PRODUCER PRICE INDEX REPORT MARKING THE THIRD CONSECUTIVE SESSION OF GAINS PRICES FINISHED 1/4 POINT TO 1 1/8 POINTS HIGHER IN SECONDARY TRADING DENVER'S 675 AIRPORT REVENUE BONDS OF 2022 FINISHED 5/8 POINT FIRMER AT 99 3/4 TO YIELD 673 THOSE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX THERE WAS HEAVIER BUYING OF THE GEORGIA MUNICIPAL ELECTRIC AUTHORITY'S 550 POWER REVENUE BONDS OF 2020 WHICH CLOSED 1 1/8 STRONGER AT 95 3/4 TO YIELD 581 WHILE THERE IS RENEWED OPTIMISM ABOUT MUNIS THE SUPPLY PICTURE MAY REMAIN A HURDLE NEXT WEEK'S PRICING CALENDAR CURRENTLY CONTAINS MORE THAN 2 BILLION OF OFFERINGS AND MANY POSTPONED ISSUES COULD BE ANNOUNCED IF YIELDS CONTINUE TO FALL IN THE US CREDIT MARKETS PRICES OF MORTGAGEBACKED SECURITIES FINISHED HIGHER SUSTAINING THE STRENGTH THEY HAVE SEEN SINCE LAST WEEK AS MONEY MANAGERS CONTINUED THEIR RETURN TO THE SECTOR IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR APRIL DELIVERY ENDED 20/32 HIGHER AT 101 1/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 ISSUES FINISHED 18/32 HIGHER AT 101 10/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR APRIL DELIVERY CLOSED 18/32 HIGHER TO CLOSE AT 101 5/32 PRIMARY MORTGAGEBACKED ACTIVITY WAS LIGHT WITH ONLY THREE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS ANNOUNCED THEY WERE PRICED EARLIER IN THE WEEK THE REMICS ALL ISSUED BY FREDDIE MAC TOTALED 102 BILLION THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9304090043 930409 BUSINESS BRIEF ALL FOR A DOLLAR INC PURPORTED CLASS ACTION SUIT IS FILED OVER FIRM'S IPO ALL FOR A DOLLAR INC SPRINGFIELD MASS SAID A STOCKHOLDER FILED A PURPORTED CLASS ACTION SUIT ALLEGING THE VARIETY STORE'S INITIAL PUBLIC OFFERING PROSPECTUS IN MAY AND SUBSEQUENT ANNOUNCEMENTS CONTAINED MATERIAL OMISSIONS AND MISREPRESENTATIONS THE SUIT FILED IN FEDERAL COURT IN NEW YORK ALSO NAMED ALL FOR A DOLLAR OFFICERS MARTIN EFFRON ROGER SLATE AND CHRISTOPHER CATJAKIS AS DEFENDANTS THE COMPANY SAID THE ALLEGATIONS ARE WITHOUT MERIT AND IT INTENDS TO DEFEND THE ALLEGATIONS VIGOROUSLY THE COMPANY'S STOCK WHICH WAS SOLD AT 9 A SHARE IN THE IPO TRADED AS HIGH AS 1375 IN NATIONAL OVERTHECOUNTER TRADING EARLIER THIS YEAR BUT HAS PLUMMETED IN THE PAST COUPLE OF MONTHS IT CLOSED YESTERDAY UNCHANGED AT 3625 A SHARE THIS MONTH THE COMPANY REPORTED NET INCOME OF 19 MILLION OR 27 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER ENDED JAN 2 DOWN FROM 22 MILLION OR 37 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 236 MILLION FROM 137 MILLION 9304090042 930409 MARKETING BRIEF WASHINGTON POST CO UK CABLE UNIT ACQUIRES FRANCHISES FROM RUSSIG LTD WASHINGTON POST CO SAID ITS UK CABLE HOLDING COMPANY POSTNEWSWEEK UK CABLE LTD ACQUIRED FROM RUSSIG LTD CABLE FRANCHISES FOR THE CUMBERNAULD DUMBARTON AND FALKIRK/LIVINGSTON AREAS OF SCOTLAND TERMS OF THE TRANSACTION WEREN'T DISCLOSED THE ACQUIRED FRANCHISES COVER AREAS WITH MORE THAN 140000 HOMES AND BRING TO 425000 THE TOTAL NUMBER OF HOMES INCLUDED IN FRANCHISED AREAS CONTROLLED BY THE UNIT THE WASHINGTON POST CO THROUGH ITS POSTNEWSWEEK CABLE DIVISION ALSO OWNS AND OPERATES 53 US CABLE SYSTEMS IN 15 STATES SERVING MORE THAN 470000 SUBSCRIBERS 9304090041 930409 BUSINESS BRIEF QUEENS MOAT HOUSES PLC BRITISH CONCERN TO REPORT PRETAX LOSS FOR PAST YEAR QUEENS MOAT HOUSES PLC A UK HOTEL AND LEISURE OPERATOR SAID IT EXPECTS TO REPORT A PRETAX LOSS FOR 1992 QUEENS MOAT'S SHARES WERE SUSPENDED ON THE LONDON STOCK EXCHANGE LAST WEEK AT THE COMPANY'S REQUEST ON THE GROUND THAT IT HAD SOME FINANCIAL CLARIFICATION TO MAKE ANALYSTS' EXPECTATIONS FOR QUEENS MOAT RESULTS FOR 1992 HAD CALLED FOR A PROFIT OF 85 MILLION 1286 MILLION QUEENS MOAT SAID EARLY DRAFT FIGURES FOR 1992 HAVEN'T YET BEEN VERIFIED FOR PUBLICATION BUT THAT IT EXPECTS TO RECORD A TRADING PROFIT DESPITE THE PRETAX LOSS THE DRAFT ALSO INDICATES A SUBSTANTIAL NET ASSET BASE THE COMPANY SAID 9304090040 930409 BUSINESS BRIEF PUROFLOW INC FIRM EXPECTS TO POST LOSS FOR FISCAL FOURTH QUARTER PUROFLOW INC SANTA MONICA CALIF SAID IT EXPECTS TO REPORT A SIGNIFICANT LOSS IN ITS FOURTH QUARTER ENDED JAN 31 BECAUSE OF WRITEOFFS ASSOCIATED WITH CERTAIN PRODUCTS LOSS OF A MAJOR CONTRACT AND COSTS ASSOCIATED WITH AN ABORTED STOCK OFFERING THE COMPANY WOULDN'T SPECIFY WHAT IT EXPECTED THE LOSS TO BE THE CONTRACT THAT WAS LOST AN AUTOMOBILE AIRBAG AGREEMENT WITH TRW INC HAD BEEN OFFSETTING THE LOSSES FROM AN UNPROFITABLE PRODUCT LINE JOSEPH B JASSO PUROFLOW PRESIDENT SAID MR JASSO SAID THE COMPANY INCURRED SUBSTANTIAL LEGAL ACCOUNTING AND INVESTMENT BANKING COSTS ASSOCIATED WITH PREPARATION OF A PUBLIC STOCK OFFERING SCHEDULED FOR MARCH 1992 BUT WHICH WAS ABANDONED FOR REASONS HE DECLINED TO SPECIFY THE COMPANY ALSO SAID PETER WONG HAS BEEN NAMED TO ITS BOARD EXPANDING IT TO SIX MEMBERS MR WONG IS A METALLURGICAL ENGINEER WHO OPERATES A LOS ANGELES METAL AND HEAT TREATING PLANT PUROFLOW A MAKER OF SPECIALTY FILTERS AND FLUID CONTROLS SAID IT WILL ANNOUNCE ITS FOURTHQUARTER RESULTS LATER THIS MONTH LAST YEAR THE COMPANY HAD FOURTHQUARTER NET INCOME OF 206855 OR SIX CENTS A SHARE ON REVENUE OF 34 MILLION 9304090039 930409 BUSINESS BRIEF RESCARE INC DELAYED MEDICAID RATE RISE NOT EXPECTED TO HURT PROFIT RESCARE INC LOUISVILLE KY EXPECTS TO MEET ANALYSTS' EXPECTATIONS OF 835000 OR 13 CENTS A SHARE FOR THE FIRST QUARTER ENDED MARCH 30 PRESIDENT AND CHIEF OPERATING OFFICER RON GEARY SAID BUT BECAUSE OF A DELAYED RATE INCREASE IN MEDICAID REIMBURSEMENTS THE PROVIDER OF MENTAL HEALTH AND JOB TRAINING SERVICES EXPECTS REVENUE WILL BE 248 MILLION DOWN FROM THE 252 MILLION ANALYSTS HAD EXPECTED IN THE YEAREARLIER PERIOD RESCARE HAD PRO FORMA NET INCOME OF 126000 OR THREE CENTS A SHARE ON REVENUE OF 198 MILLION RESCARE SAID THIS YEAR'S FIRSTQUARTER EARNINGS BENEFITED FROM ITS EXPANSION INTO COLORADO LAST YEAR THE COMPANY'S MENTAL HEALTH SERVICES BUSINESS WON LOCAL GOVERNMENT CONTRACTS TO OPEN GROUP HOMES IN THAT STATE THE TOTAL NUMBER OF CLIENTS IS UP 450 FROM A YEAR EARLIER 9304090038 930409 WHO'S NEWS CHRONICLE PUBLISHING CO CHRONICLE PUBLISHING CO SAN FRANCISCO JOHN B SIAS FORMER EXECUTIVE VICE PRESIDENT OF CAPITAL CITIES/ABC INC AND PRESIDENT OF THE ABC TELEVISION NETWORK HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS NEWSPAPER AND BROADCASTING COMPANY MR SIAS 66 YEARS OLD SUCCEEDS RICHARD T THIERIOT 51 WHO CONTINUES AS PUBLISHER AND EDITOR OF THE SAN FRANCISCO CHRONICLE 9304090037 930409 BUSINESS BRIEF HOWTEK INC FIRSTPERIOD PROFIT ESTIMATE CUT ON WEAKNESS IN EUROPE HOWTEK INC ESTIMATED FIRSTQUARTER 1993 EARNINGS PER SHARE OF 11 CENTS AND REVENUE OF ABOUT 6 MILLION DOWN FROM EARLIER EXPECTATIONS COMPARED WITH A YEARAGO LOSS OF FOUR CENTS A SHARE ON REVENUE OF 35 MILLION HOWTEK A HUDSON NH MAKER OF ELECTRONIC SCANNING AND PREPRESS TECHNOLOGY ADDED THAT IT IS COMFORTABLE WITH 1993 EARNINGS ESTIMATES OF ABOUT 1 A SHARE BUT SAID IT COULDN'T BE MORE PRECISE DUE TO THE UNCERTAINTY OF THE EUROPEAN MARKET IT SAID THAT IN THE FIRST QUARTER SLOWNESS IN EUROPE WAS THE MAIN REASON FOR LOWERTHANEXPECTED RESULTS BUT THAT ITS LATEST 1ASHARE ESTIMATE FOR 1993 ASSUMES NO SIGNIFICANT RECOVERY IN EUROPE HOWTEK ALSO SAID IT RECENTLY INTRODUCED A SCANNER IN JAPAN AND ASIA AND HOPES TO BUFFER THE SOFTNESS IN EUROPE WITH GROWTH IN THE FAR EAST IN 1992 EXPORTS ACCOUNTED FOR 43 OF THE COMPANY'S TOTAL SALES 9304090036 930409 PAY IN '92 WAS FLAT FOR TOP EXECUTIVES AT CHARLES SCHWAB SAN FRANCISCO DESPITE WALL STREET'S BOOMING BOTTOMLINE COMPENSATION FOR TOPLEVEL EXECUTIVES AT DISCOUNT BROKER CHARLES SCHWAB & CO DIDN'T BOOM IN 1992 ACCORDING TO A PROXY FILED BY THE SAN FRANCISCO COMPANY CHAIRMAN CHARLES R SCHWAB VICE CHAIRMAN LAWRENCE STUPSKI AND PRESIDENT DAVID POTTRUCK RECEIVED CASH PAY SALARY PLUS BONUS THAT WAS FLAT OR SLIGHTLY BELOW 1991 LEVELS ACCORDING TO THE PROXY STATEMENT IN PAY ALONE MR SCHWAB RECEIVED 32 MILLION UP FROM 31 MILLION LAST YEAR MR STUPSKI'S CASH COMPENSATION DECLINED TO 14 MILLION FROM 18 MILLION MR POTTRUCK'S CASH PAY WAS 11 MILLION A DECREASE OF 44572 A COMPANY SPOKESMAN SAID THE EXECUTIVES RECEIVED LOWER OR FLAT 1992 COMPENSATION DESPITE RECORD EARNINGS BECAUSE WHILE NET REVENUE ROSE 32 IN 1992 IT WAS BELOW THE 47 GAIN IN 1991 COMPENSATION INCREASES REQUIRE THAT THE COMPANY'S PERFORMANCE EXCEED PREVIOUS LEVELS ALL THREE EXECUTIVES RECEIVED OPTIONS TO PURCHASE MORE THAN 200000 SHARES OF CHARLES SCHWAB STOCK AT A 23 DISCOUNT TO ITS CURRENT MARKET PRICE THE NATION'S SECURITIES FIRMS REPORTED RECORD PRETAX PROFIT OF 618 BILLION IN 1992 CHARLES SCHWAB & CO POSTED RECORD 1992 NET EARNINGS OF 208 A SHARE UP FROM 127 IN 1991 BENEFITTING FROM A FOURTHQUARTER SURGE IN OVERTHECOUNTER TRADING AND THE COMMISSIONS IT GENERATED 9304090035 930409 WHO'S NEWS FREEPORTMCMORAN INC FREEPORTMCMORAN INC NEW ORLEANS THE COMPANY ANNOUNCED THE PROMOTION OF THREE EXECUTIVES EFFECTIVE MAY 4 RICHARD C ADKERSON A 46YEAROLD SENIOR VICE PRESIDENT WAS NAMED CHIEF FINANCIAL OFFICER SUCCEEDING RON GROSSMAN WHO TOOK EARLY RETIREMENT CHARLES W GOODYEAR A 35YEAROLD SENIOR VICE PRESIDENT WAS NAMED CHIEF INVESTMENT OFFICER SUCCEEDING ERNEST E HOWARD III WHO ALSO TOOK EARLY RETIREMENT RICHARD H BLOCK 42YEAROLD PRESIDENT OF THE COMPANY'S AGRICO CHEMICAL UNIT WAS NAMED VICE PRESIDENT OF FREEPORT AND CHIEF OPERATIONAL DEPUTY TO THE OFFICE OF THE CHAIRMAN WHICH IS A NEW POSITION FREEPORT IS AN ENERGY AND NATURAL RESOURCES CONCERN 9304090034 930409 BUSINESS BRIEF GEBRUEDER SULZER AG GROUP 1992 NET ROSE 56 COMPANY TO RAISE PAYOUT GEBRUEDER SULZER AG A SWISS MACHINERY GROUP SAID ITS 1992 GROUP NET INCOME ROSE 56 FROM ITS REVISED 1991 NET PROMPTING THE COMPANY TO BOOST ITS DIVIDEND GROUP NET ROSE TO 168 MILLION FRANCS 1128 MILLION IN 1992 FROM 108 MILLION FRANCS IN 1991 WHILE SALES INCREASED 46 TO 680 BILLION FRANCS FROM 651 BILLION FRANCS THE PREVIOUS YEAR THE COMPANY ALSO ANNOUNCED THAT IT WANTS TO INCREASE ITS AUTHORIZED CAPITAL BY 415 MILLION FRANCS AS RESERVE FOR FUTURE EQUITYLINKED SECURITIES ISSUES AND TO ISSUE BONUS WARRANTS SULZER ALSO WANTS TO CONVERT ITS PARENT COMPANY INTO A HOLDING COMPANY AND TO ADJUST ITS STATUTES TO THE NEW SWISS SHAREHOLDING REGULATIONS THE BOARD PROPOSED TO RAISE ITS DIVIDEND PER REGISTERED SHARE AND PER PARTICIPATION CERTIFICATE TO 16 FRANCS 1070 FROM 13 FRANCS IN 1991 SOME 1991 FIGURES WERE CHANGED TO REFLECT THE COMPANY'S ACCOUNTING CHANGE TO EUROPEAN COMMUNITY AND INTERNATIONAL ACCOUNTING STANDARDS AND A STOCK SPLIT 9304090033 930409 BUSINESS BRIEF ISUZU MOTORS LTD INTERIM DIVIDEND PAYMENTS WILL NOT RESUME THIS YEAR ISUZU MOTORS LTD A JAPANESE AUTOMOBILE MAKER SAID IT IS UNABLE TO RESUME INTERIM DIVIDEND PAYMENTS THIS FISCAL YEAR ISUZU DESPITE ITS STRUGGLE TO SWING INTO PROFIT IS FACING SEVERE BUSINESS CONDITIONS THIS FISCAL YEAR DUE TO THE YEN'S SHARP APPRECIATION AND SOFTNESS IN THE ECONOMIES OF JAPAN AND THE US THE COMPANY SAID YESTERDAY'S DECISION APPLIES TO THE FISCAL FIRST HALF ENDING APRIL 30 BUT AN ISUZU SPOKESMAN SAID THE POOR EARNINGS OUTLOOK IS UNLIKELY TO ALLOW THE COMPANY TO PAY A DIVIDEND AT THE FISCAL YEAR'S END EITHER ISUZU HASN'T PAID A DIVIDEND IN THE PAST THREE FISCAL YEARS ISUZU MAINTAINS THE EARNINGS PROJECTIONS FOR THE YEAR ENDING OCT 31 THAT IT ISSUED IN JANUARY IT EXPECTS PARENT PRETAX LOSS TO NARROW TO 1300 BILLION YEN 11447 MILLION FROM THE LOSS OF 2355 BILLION YEN IN THE PREVIOUS FISCAL YEAR IT EXPECTS TO BREAK EVEN ON A NET INCOME BASIS COMPARED WITH A YEARAGO LOSS OF 1268 BILLION YEN SALES ARE EXPECTED TO BE 1210 TRILLION YEN UP 09 9304090032 930409 NEW YORK MERC PLAN FOR NEW SITE IS ENDED BY OWNER PRIMERICA NEW YORK THE NEW YORK MERCANTILE EXCHANGE'S PLANS TO MOVE INTO A 90 MILLION STATEOFTHEART TRADING FACILITY BY THE END OF NEXT YEAR WERE SCUTTLED WHEN THE WORLD'S LARGEST ENERGY EXCHANGE WAS TOLD THAT ITS PLANS COULD NO LONGER BE ACCOMMODATED BY THE SITE'S NEW OWNER PRIMERICA CORP IN NOVEMBER THE EXCHANGE CURRENTLY AT 4 WORLD TRADE CENTER ANNOUNCED IT HAD REACHED AN AGREEMENT ON A 15YEAR DEAL WITH SHEARSON LEHMAN BROTHERS INC TO RENOVATE AND LEASE FOUR FLOORS OF THE SHEARSON BUILDING AT 390 GREENWICH ST IN MANHATTAN BUT BEFORE THE LEASE WAS SIGNED PRIMERICA PURCHASED SHEARSON FROM AMERICAN EXPRESS CO AND ANNOUNCED THAT IT WOULD RELOCATE ITS OWN EMPLOYEES TO THE GREENWICH STREET BUILDING AN EXCHANGE SPOKESWOMAN SAID THAT DESPITE SEVERAL PROPOSED COMPROMISES BY THE MERC PRIMERICA WON'T OFFER THE EXCHANGE THE SPACE IT HAD WANTED SHE SAID THE MERC REMAINS COMMITTED TO FINDING A NEW SITE AND THAT THE CITY OF NEW YORK REMAINS COMMITTED TO HELPING IN THAT ENDEAVOR THE CITY HAS PLEDGED SOME 70 MILLION IN GRANTS FOR THE MOVE ON THE BASIS THAT THE EXCHANGE WILL STAY IN NEW YORK CITY FOR THE MOMENT THE EXCHANGE HAS NO ALTERNATE SITE TO WHICH TO TURN SOME TRADERS HAD SPECULATED EARLIER THAT IF THE MOVE TO THE SHEARSON SITE WERE TO FALL THROUGH THE NEW YORK MERC MIGHT THEN BE TEMPTED TO RESUME TALKS ON CONSOLIDATION WITH OTHER NEW YORKBASED COMMODITY EXCHANGES THE MERC OPERATES IN THE SAME FACILITY AS FOUR OTHER MANHATTANBASED FUTURES EXCHANGES AT 4 WORLD TRADE CENTER 9304090031 930409 BUSINESS BRIEF KANSALLISOSAKEPANKKI OY GOVERNMENT AGREES TO COVER SUBSIDIARY'S TROUBLED LOANS FINLAND'S LEADING BANKING GROUP KANSALLISOSAKEPANKKI OY REACHED AN AGREEMENT WITH THE GOVERNMENT GUARANTEE FUND ON THE HANDLING OF 34 BILLION MARKKA 581 MILLION IN PROBLEM LOANS OF THE COMPANY'S STSBANK LTD UNIT UNDER THE AGREEMENT THE GOVERNMENT GUARANTEE FUND WILL SHOULDER RESPONSIBILITY FOR 90 OF THE CREDIT LOSSES ARISING FROM THE LOANS KOP SAID PURSUANT TO THE AGREEMENT THE LOANS WILL REMAIN IN THE BOOKS OF STS AND THE REST OF THE SUBSIDIARY'S ASSETS WILL BE SPUN OFF TO A SEPARATE COMPANY THAT WILL MERGE WITH KOP AT THE SAME TIME THE GOVERNMENT GUARANTEE FUND WILL ASSUME CONTROL OF STS THE PLAN TO BE IMPLEMENTED NEXT MONTH WILL DETACH THE BULK OF THE PROBLEM LOANS FROM KOP THUS LIMITING ITS RISK ARISING FROM THEM TO 250 MILLION MARKKA 43 MILLION KOP SAID 9304090030 930409 WHO'S NEWS RASTEROPS CORP RASTEROPS CORP SANTA CLARA CALIF PAUL J SMITH 60YEAROLD FORMER PRESIDENT OF UTILIS ASSOCIATES A SARATOGA CALIF EXECUTIVE CONSULTING FIRM WAS NAMED TO THE POSITIONS OF PRESIDENT AND CHIEF OPERATING OFFICER OF THIS COMPUTERWORKSTATION MANUFACTURER HE SUCCEEDS KIETH SORENSON WHO REMAINS CHIEF EXECUTIVE CONCENTRATING ON STRATEGIC PLANNING AND VENDOR RELATIONSHIPS 9304090029 930409 THE CLINTON BUDGET WHITE HOUSE ISSUES DETAILS OF PLAN TO SHIFT SPENDING FROM DEFENSE TO DOMESTIC AREAS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON THE DAY OF HIS FIRST VISIT TO THE PENTAGON PRESIDENT CLINTON RELEASED FURTHER DETAILS ON HIS PLANS TO SHIFT SPENDING FROM DEFENSE TO DOMESTIC INVESTMENT PRIORITIES IN MORE THAN 1400 PAGES THE WHITE HOUSE FLESHED OUT THE FIVEYEAR SPENDING OUTLINE IT RELEASED IN FEBRUARY WITH A FOCUS ON THE FISCAL YEAR THAT BEGINS OCT 1 AS INDICATED THEN SPENDING IN FISCAL 1994 WOULD RISE FOR ITEMS RANGING FROM RURAL DEVELOPMENT PROGRAMS TO GLOBAL WARMING RESEARCH TO HIGHCAPACITY TELECOMMUNICATIONS NETWORKS THAT WOULD LINK SCHOOLS LIBRARIES AND OTHER INFORMATION SOURCES BESIDES DEFENSE SPENDING OUTLAYS WOULD FALL FOR A VARIETY OF PROGRAMS INCLUDING NUCLEAR REACTOR DEVELOPMENT AND FEDERAL CROP INSURANCE CONGRESS HAS ALREADY MOVED BEYOND MR CLINTON'S PLAN LAST WEEK LAWMAKERS GAVE FINAL APPROVAL TO A NONBINDING BUDGET RESOLUTION THAT CALLS FOR CUTTING THE FEDERAL BUDGET DEFICIT BY 496 BILLION OVER FIVE YEARS UNDER CONGRESSIONAL SCOREKEEPING METHODS THE WHITE HOUSE PROPOSAL RELEASED YESTERDAY PUTS DOWN A MARKER FOR THE ADMINISTRATION'S PRIORITIES AS APPROPRIATIONS COMMITTEES BEGIN TO WORK ON SPECIFIC SPENDING ITEMS FOR FISCAL 1994 UNDER THE CLINTON PROPOSAL TOTAL OUTLAYS FOR FISCAL 1994 WOULD RISE TO 1515 TRILLION UP 32 FROM 1468 TRILLION IN 1993 THAT COMPARES WITH FISCAL 1994 OUTLAYS OF 1496 TRILLION UNDER THE CONGRESSIONAL RESOLUTION IT WOULD TAKE OUTLAYS OF 1527 TRILLION TO MAINTAIN THE CURRENT LEVEL OF GOVERNMENT SERVICES THE WHITE HOUSE BUDGET OFFICE SAYS REVENUES WOULD RISE TO 1251 TRILLION IN FISCAL 1994 UP 92 FROM 1146 TRILLION IN FISCAL 1993 THAT COMPARES WITH 1242 TRILLION UNDER THE CONGRESSIONAL RESOLUTION WITHOUT ANY TAX INCREASES THE ADMINISTRATION ESTIMATES THAT RECEIPTS WOULD BE 1215 TRILLION AMONG AREAS THAT WOULD GET LESS FUNDING THAN UNDER CURRENTSERVICES LEVELS ARE DEFENSE ENERGY COMMERCE AND HOUSING AND MEDICARE PROGRAMS THAT WOULD DO BETTER THAN UNDER CURRENT SERVICES INCLUDE SCIENCE AND SPACE AGRICULTURE TRANSPORTATION AND EDUCATION THE BUDGET RESOLUTION PASSED BY CONGRESS DOESN'T ALLOW FOR ALL THE SPENDING THAT MR CLINTON PROPOSED WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID THE ADMINISTRATION WOULD MEET THE CONGRESSIONAL TARGETS BUT IT ISN'T YET CLEAR WHAT AREAS WILL BE CUT OR HOW SPENDING WILL BE SHIFTED HERE ARE SOME OF THE BUDGET DETAILS THAT EMERGED THE PROPOSED 2634 BILLION IN BUDGET AUTHORITY FOR DEFENSE IN FISCAL 1994 CONTINUES THE EIGHTYEAR TREND OF CUTTING DEFENSE SPENDING BUT INCREASES ARE SLATED FOR A FEW AREAS MOST NOTABLY SPENDING ON THE ENVIRONMENTAL CLEANUP OF MILITARY BASES WOULD INCREASE TO 231 BILLION FROM 119 BILLION IN THE CURRENT FISCAL YEAR AND SPENDING FOR THE OPERATIONS OF THE OFFICE OF THE SECRETARY OF DEFENSE IS SCHEDULED TO SHOOT TO 4359 MILLION FROM 3417 MILLION THAT INCREASE APPARENTLY REFLECTS DEFENSE SECRETARY LES ASPIN'S INTENTION TO CREATE A POWERFUL OFFICE WITH AN ANALYTICAL CAPABILITY EQUAL TO THAT OF THE JOINT CHIEFS OF STAFF WHICH HAS A STAFF OF ABOUT 1400 PEOPLE LEAVING THE PENTAGON AFTER A TWOHOUR MEETING WITH THE JOINT CHIEFS OF STAFF AND MR ASPIN PRESIDENT CLINTON SAID HE DIDN'T EXPECT HIS PLANS FOR DEFENSE BUDGET CUTS TO CHANGE IN THE COMING YEARS SEEMING TO REJECT CALLS FOR LARGER CUTS IN THE FUTURE HE SAID WE'RE BEING ASKED TO DO MORE EVERY DAY YOU KNOW WITH FEWER PEOPLE MR CLINTON RAISED WITH THE CHIEFS THE ISSUE OF THE C17 MILITARY CARGO TRANSPORT A DECISION ON THAT TROUBLED PLANE WHICH IS BEING BUILT BY MCDONNELL DOUGLAS CORP WILL BE MADE THIS SUMMER A SENIOR DEFENSE OFFICIAL SAID SOME CHANGE IN THE PROGRAM IS EXPECTED WITH THE MOST LIKELY BEING A REVISION OF THE CONTRACT PERHAPS TO TRANSFER MANAGEMENT OF THE PROGRAM TO LOCKHEED CORP OR BOEING CO BUT LABOR UNIONS MAY VIGOROUSLY OPPOSE ANY SUCH MOVE THE ADMINISTRATION HAS MADE TWO MAJOR CHANGES IN THE PROPOSED BUDGET FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SINCE FEBRUARY INITIALLY THE ADMINISTRATION PROPOSED ROLLING NEW CONSTRUCTION OF PUBLIC HOUSING FOR THE ELDERLY AND THE DISABLED INTO THE HOME AFFORDABLEHOUSING PROGRAM THE NEW CATEGORY WOULD HAVE BEEN FUNDED AT 22 BILLION IN FISCAL 1994 BUT HUD SECRETARY HENRY CISNEROS PERSUADED BUDGET OFFICIALS TO KEEP THE PROGRAMS SEPARATE UNDER PLANS RELEASED YESTERDAY HOME IS SLATED FOR 16 BILLION NEXT YEAR UP FROM 1 BILLION THIS YEAR WHILE THE OTHER TWO PROGRAMS WOULD BE FUNDED AT THEIR CURRENTYEAR LEVELS IN ADDITION BUDGET OFFICIALS ORIGINALLY WANTED TO ELIMINATE PROGRAMS DESIGNED TO PROMOTE HOME OWNERSHIP OF PUBLIC HOUSING AND OTHER GOVERNMENTOWNED UNITS THE PROGRAM WAS A FAVORITE OF FORMER HUD SECRETARY JACK KEMP BUT OFFICIALS DECIDED TO REQUEST SOME FUNDING 1092 MILLION IN THE DOCUMENTS RELEASED YESTERDAY THAT WOULD BE A SHARP DECLINE FROM THIS YEAR BUT STILL ALLOW PARTICIPANTS IN THE PROGRAM TO FINISH THE PROCESS OVERALL HUD OFFICIALS SAID NEW AND PREVIOUSLY COMMITTED SPENDING WILL RESULT IN TOTAL HUD OUTLAYS OF 289 BILLION AN INCREASE OF 29 BILLION FROM THE 1993 LEVEL THE FEDERAL COMMUNICATIONS COMMISSION WOULD PICK UP AN EXTRA 12 MILLION MAINLY TO ADD STAFF TO ENFORCE LAST YEAR'S CABLETELEVISION REREGULATION LAW BRINGING THE AGENCY'S PROJECTED 1993 BUDGET TO 1455 MILLION THE AGENCY HAS SAID IT NEEDS THE MONEY TO DRAFT REGULATIONS AND TO HANDLE SOME 25000 CABLERELATED COMPLAINTS THAT ARE EXPECTED TO BE FILED THIS YEAR THE COMMERCE DEPARTMENT'S NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION WOULD GET 566 MILLION NEXT YEAR INCLUDING 313 MILLION TO HELP PROMOTE THE DEVELOPMENT OF HIGHCAPACITY TELECOMMUNICATIONS NETWORKS IN ADDITION THE ADMINISTRATION ENVISIONS SETTING ASIDE 51 MILLION FOR GRANTS FOR PLANNING AND CONSTRUCTION OF A NATIONAL INFORMATION SUPERHIGHWAY THE BUDGET OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION CARRIES OUT A MAJOR CLINTON ADMINISTRATION EFFORT TO PARE SUPEREXPENSIVE SPACE MISSIONS TO FREE UP MONEY FOR SMALLER PROJECTS OF MORE DIRECT BENEFIT TO INDUSTRY AND THE ECONOMY ALTHOUGH THE PRESIDENT IS PROPOSING TO WHACK 11 BILLION TO 15 BILLION OFF THE SPACE STATION'S CURRENT PRICE TAG OF 31 BILLION HE IS RECOMMENDING TO INCREASE NASA'S OVERALL OUTLAYS TO 147 BILLION IN FISCAL 1994 FROM 141 BILLION CURRENTLY THE US CIVIL AVIATION INDUSTRY IS ONE OF THE BIGGEST WINNERS CIVIL AERONAUTICS RESEARCH IS SLATED FOR A 55 INCREASE BY 1998 FOR NEXT FISCAL YEAR MR CLINTON IS SEEKING 101 MILLION COMPARED WITH 12 MILLION NOW TO IMPROVE DESIGNS FOR THE NEXT GENERATION OF SUBSONIC COMMERCIAL JETS AN 80 MILLION INCREASE TO 187 MILLION TO DEVELOP TECHNOLOGIES FOR A SUPERSONIC AIRLINER TO SUCCEED THE EUROPEANBUILT CONCORDE 80 MILLION TO RESUME WORK ON AN AEROSPACE PLANE AND 200 MILLION TO MODERNIZE AND BUILD WIND TUNNELS THAT INDUSTRY COULD USE FOR TESTING NEW DESIGNS NASA STILL WANTS TO FLY EIGHT SHUTTLE MISSIONS A YEAR BUT NASA ADMINISTRATOR DANIEL GOLDIN SAID THE SHUTTLE'S BUDGET WILL BE PARED 25 OVER THE NEXT FIVE YEARS THROUGH EFFICIENCIES FINAL FIGURES FOR THE PROPOSED SPACE STATION THE ORBITING LABORATORY THAT MR CLINTON ORDERED DRASTICALLY SCALED DOWN WON'T BE KNOWN UNTIL A NEW DESIGN IS PICKED IN JUNE BUT THE WHITE HOUSE HAS LIMITED NASA TO SPENDING BETWEEN 5 BILLION TO 9 BILLION TO FINISH THE PROJECT THE CLINTON ADMINISTRATION THREW ITS WEIGHT BEHIND THE FEDERAL JUDICIARY'S REQUEST THAT CONGRESS APPROVE 984 MILLION IN SUPPLEMENTAL FISCAL 1993 FUNDING FOR SUCH THINGS AS DEFENSE LAWYERS FOR THE INDIGENT AND FEES FOR JURORS SOME FEDERAL JUDGES HAVE THREATENED TO STOP SCHEDULING CIVIL TRIALS IF THE EMERGENCY MONEY FOR PAYING JURORS ISN'T APPROVED SOON THE WHITE HOUSE URGED CONGRESS TO APPROVE 31 BILLION IN SPENDING FOR THE FEDERAL JUDICIARY IN FISCAL 1994 THAT WOULD BE A 19 INCREASE OVER ESTIMATED SPENDING FOR THIS YEAR BUT DAVID SELLERS A SPOKESMAN FOR THE FEDERAL JUDICIARY SAID THE WHITE HOUSE REQUEST FOR 1994 IS SOMEWHAT INFLATED BECAUSE IT INCLUDES FEES THAT THE COURTS THEMSELVES IMPOSE ON LITIGANTS SPENDING FOR THE JUSTICE DEPARTMENT WOULD DECLINE TO 103 BILLION FROM 106 BILLION THE ADMINISTRATION PROPOSED A CUT OF 183 MILLION OR 28 IN GRANTS TO STATE AND LOCAL LAW ENFORCEMENT AGENCIES WHITE HOUSE AND JUSTICE DEPARTMENT BUDGET DOCUMENTS DIDN'T EXPLAIN HOW THIS CUT RELATES TO THE PRESIDENT'S PLEDGE TO HELP STATES AND CITIES PUT 100000 ADDITIONAL POLICE ON THE BEAT THE PRESIDENT RECOMMENDED THAT CONGRESS MAKE AVAILABLE 167 MILLION IN FISCAL 1993 TO IMPROVE CRIMINAL RECORDKEEPING IN CONNECTION WITH PROPOSED GUNCONTROL LEGISLATION KNOWN AS THE BRADY BILL THE ADMINISTRATION ALSO PROPOSED TO CUT SPENDING FOR THE IMMIGRATION AND NATURALIZATION SERVICE AND INCREASE FUNDING FOR THE DRUG ENFORCEMENT ADMINISTRATION TO THE CHAGRIN OF ENVIRONMENTAL GROUPS THE ENVIRONMENTAL PROTECTION AGENCY'S OPERATIONAL BUDGET WOULD BE LARGELY UNCHANGED FROM FISCAL 1993 THE ADMINISTRATION HOWEVER IS CALLING FOR SIGNIFICANT INCREASES IN SPENDING ON WASTEWATER TREATMENT AND OTHER CLEANWATER PROGRAMS IT'S ALSO PROPOSING MODEST INCREASES IN PROGRAMS TO PROMOTE ENERGY EFFICIENCY INCREASE FISHERY PRODUCTIVITY AND SUPPORT LOCAL AIR PESTICIDE AND HAZARDOUSWASTE CLEANUP EFFORTS THESE INCREASES ARE TO BE FINANCED BY STREAMLINING THE SUPERFUND HAZARDOUSWASTE PROGRAM SEPARATELY MR CLINTON PROPOSES SPENDING 15 BILLION TO STUDY GLOBAL WARMING IN FISCAL 1994 A 13 JUMP THE ADMINISTRATION ESTIMATED THAT ITS NEW DIRECT STUDENT LOAN PROGRAM WOULD SAVE 42 BILLION IN OUTLAYS THROUGH FISCAL 1998 COMPARED WITH THE CURRENT SYSTEM OF GOVERNMENTGUARANTEED LOANS UNDER THE PLAN WHICH LETS COLLEGE STUDENTS BORROW MONEY DIRECTLY FROM THE FEDERAL GOVERNMENT INTEREST RATES ON STUDENT LOANS WOULD BE REDUCED BY 06 PERCENTAGE POINT DURING THE 19971998 ACADEMIC YEAR THE PLAN CALLS FOR A 6 INCREASE IN DISCRETIONARY SPENDING FOR THE EDUCATION DEPARTMENT WITH INCREASES PROPOSED FOR SEVERAL EARLY CHILDHOOD EDUCATION PROGRAMS AND THE ADMINISTRATION'S COMPREHENSIVE SCHOOLREFORM PACKAGE BUT THE BUDGET ALSO PROPOSES REDUCING MORE THAN 100 PROGRAMS ELIMINATING 24 ENTIRELY INCLUDING A 35 MILLION ITEM FOR CONSUMER AND HOMEMAKING EDUCATION ADMINISTRATION OFFICIALS SAID THEY WERE PESSIMISTIC THAT CONGRESS WOULD CUT SOME OF THESE PROGRAMS THE HOMEMAKING PROGRAM STARTED IN 1917 REMAINS POPULAR THEY SAID AND A PROGRAM THAT GIVES EXTRA MONEY TO SCHOOL DISTRICTS WITH A HIGH CONCENTRATION OF FEDERAL WORKERS HAS RESISTED BUDGET CUTTERS' EFFORTS TO ELIMINATE IT SINCE THE TRUMAN ERA THE AGRICULTURE DEPARTMENT BUDGET WOULD PROVIDE SIGNIFICANT SPENDING INCREASES FROM FISCAL 1993 FOR THE WETLANDS RESERVE PROGRAM UNDER WHICH FARMERS ARE PAID TO TAKE WETLANDS OUT OF PRODUCTION FOR AT LEAST 30 YEARS AND THE CONSERVATION RESERVE PROGRAM IN WHICH FARMERS ARE PAID TO TAKE HIGHLY ERODIBLE LAND OUT OF PRODUCTION FOR 10 TO 15 YEARS THE INCREASE WOULD PUT BOTH PROGRAMS ON SCHEDULES SET IN THE 1990 FARM BILL THE INTERIOR DEPARTMENT'S BUDGET INCLUDES A SHARPENED FOCUS ON ENDANGERED SPECIES IT CALLS FOR ADDITIONAL SPENDING TO ATTACK THE BACKLOG OF CASES INVOLVING SPECIES ELIGIBLE FOR LISTING AS THREATENED OR ENDANGERED IT ALSO WOULD PROVIDE MORE RESEARCH TO SUPPORT INTERIOR SECRETARY BRUCE BABBITT'S EFFORTS TO LOOK AT ENTIRE HABITATS RATHER THAN SINGLE SPECIES AND TO DEAL WITH THREATENED SPECIES BEFORE THEIR SITUATION BECOMES CRITICAL AN INCREASE IN SPENDING FOR RESTORING NATIONAL PARKS WOULD ALLOW FOR SPENDING AT EVERY PARK THE BUDGET HOWEVER WOULD REDUCE FUNDS FOR ACQUIRING PARKLAND 9304090028 930409 BUSINESS BRIEF RYAN BECK & CO PROFIT MORE THAN DOUBLED FOR FIRM'S FISCAL 1ST QUARTER RYAN BECK & CO REPORTED FISCAL FIRSTQUARTER NET INCOME MORE THAN DOUBLED AND DECLARED A SPECIAL CASH DIVIDEND REFLECTING THE STRONG RESULTS THE LOCAL INVESTMENT BANKING FIRM BASED IN WEST ORANGE NJ SAID NET GREW TO 19 MILLION OR 53 CENTS A SHARE FOR THE QUARTER ENDED MARCH 26 FROM 756000 OR 22 CENTS A SHARE A YEAR EARLIER THE PERSHARE RESULTS ARE ADJUSTED TO REFLECT A 5FOR4 STOCK SPLIT LAST SEPTEMBER REVENUE ROSE 59 TO 86 MILLION FROM 54 MILLION A YEAR EARLIER THE COMPANY'S BOARD DECLARED A SPECIAL CASH DIVIDEND OF 34 CENTS A SHARE IN ADDITION TO A REGULAR QUARTERLY CASH DIVIDEND OF ONE CENT A SHARE BOTH DIVIDENDS ARE PAYABLE APRIL 27 TO STOCK OF RECORD APRIL 19 STEVE MILLSAPS SPECIAL COUNSEL TO RYAN BECK SAID THE NEW SPECIAL DIVIDEND LIKE THE 15 CENT A SHARE SPECIAL DIVIDEND DECLARED IN JANUARY REFLECTS BOARD POLICY TO PAY OUT EARNINGS WHENEVER POSSIBLE 9304090027 930409 TECHNOLOGY BRIEF MARION MERRELL DOW INC PACT REACHED WITH FIRM IN JAPAN TO DEVELOP DRUGS MARION MERRELL DOW INC TOOK ANOTHER STEP TOWARD REPLENISHING ITS PIPELINE OF POTENTIAL NEW DRUGS BY REACHING A DEVELOPMENT PACT WITH JAPAN'S MITSUBISHI KASEI CORP THE DRUG MAKER AND THE TOKYO CHEMICAL COMPANY AGREED TO COLLABORATE ON THE NORTH AMERICAN DEVELOPMENT AND MARKETING OF PHARMACEUTICAL PRODUCTS DISCOVERED BY MITSUBISHI KASEI MARION MERRELL IN KANSAS CITY MO DIDN'T DISCLOSE TERMS OF THE ARRANGEMENT THE AGREEMENT COVERS MITSUBISHI KASEI COMPOUNDS UNDER CLINICAL DEVELOPMENT IN JAPAN AS WELL AS COMPOUNDS THAT ENTER CLINICAL TRIALS IN THE NEXT SEVEN YEARS MARION MERRELL WILL LICENSE FROM MITSUBISHI CERTAIN COMPOUNDS FOR THE NORTH AMERICAN MARKET AND DEVELOP AND MARKET THE NEW DRUGS USING BULK INGREDIENTS SUPPLIED BY THE JAPANESE COMPANY ALTERNATIVELY THE TWO COMPANIES WILL JOINTLY DEVELOP AND MARKET THE COMPOUNDS IN NORTH AMERICA 9304090026 930409 BUSINESS BRIEF PANCANADIAN PETROLEUM LTD OIL AND GAS CONCERN SEES NET NEARLY TRIPLING FOR QUARTER PANCANADIAN PETROLEUM LTD SAID IT EXPECTS TO REPORT FIRSTQUARTER NET INCOME OF ABOUT 60 MILLION CANADIAN DOLLARS US476 MILLION NEARLY TRIPLE THE C205 MILLION IT REPORTED IN THE SAME PERIOD A YEAR AGO DAVID O'BRIEN CHAIRMAN AND PRESIDENT OF THE CALGARYBASED OIL AND GAS CONCERN TOLD SHAREHOLDERS AT THE COMPANY'S ANNUAL MEETING YESTERDAY THAT CASH FLOW FOR THE FIRST QUARTER IS EXPECTED TO REACH C140 MILLION COMPARED WITH C954 MILLION A YEAR EARLIER FOR THE YEAR MR O'BRIEN SAID PANCANADIAN EXPECTS NET INCOME TO REACH C235 MILLION COMPARED WITH C1706 MILLION IN 1992 WHILE CASH FLOW FOR THE YEAR SHOULD REACH C575 MILLION COMPARED WITH C4903 MILLION IN 1992 THE COMPANY SAID MUCH OF THE GROWTH IN EARNINGS AND CASH FLOW WILL BE BECAUSE OF HIGHER OIL AND GAS PRODUCTION LEVELS OIL OUTPUT IS EXPECTED TO RISE ABOUT 30 IN 1993 OVER 1992 WHILE NATURAL GAS PRODUCTION SHOULD RISE 8 9304090025 930409 INTERNATIONAL US FIRMS PRESS TO GET A SHARE OF JAPAN'S BIG SPENDING PACKAGE BY CLAY CHANDLER AND DAVID P HAMILTON STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO AS JAPANESE OFFICIALS WORK OUT DETAILS OF A RECORD GOVERNMENT SPENDING PROGRAM US COMPANIES ARE LINING UP TO MAKE SURE THEY GET A SHARE MEANWHILE OFFICIALS AT THE FINANCE MINISTRY ARE MAKING EXTRA EFFORTS TO CONVINCE JAPAN'S TRADING PARTNERS THAT THEY ARE SERIOUS ABOUT SPENDING ENOUGH TO BRING JAPAN'S ECONOMY BACK TO LIFE MOVES ON BOTH SIDES COME JUST DAYS BEFORE PRIME MINISTER KIICHI MIYAZAWA LEAVES FOR WASHINGTON WHERE HE IS EXPECTED TO OUTLINE THE PLAN TO PRESIDENT CLINTON LAST WEEK MR MIYAZAWA PROMISED THE PACKAGE WOULD HAVE A VALUE OF AT LEAST 107 TRILLION YEN 9421 BILLION US FIRMS HAVE HIGH HOPES THEY CAN WIN GOVERNMENT CONTRACTS FOR WHAT JAPANESE OFFICIALS ARE CALLING NEW SOCIAL CAPITAL PROJECTS PUBLIC INVESTMENT IN NONTRADITIONAL ITEMS SUCH AS TELECOMMUNICATIONS COMPUTERS AND ADVANCED MEDICAL EQUIPMENT THE PROJECTS ARE EXPECTED TO BE A CENTERPIECE OF THE STIMULUS PACKAGE MANY AMERICAN COMPANIES ARE RELUCTANT TO PUBLICLY DEMAND A CHUNK OF TOKYO'S PUBLIC SPENDING BUT THE TOKYO OFFICE OF THE AMERICAN ELECTRONICS ASSOCIATION HAS RAISED THE BANNER FOR THEM ON MARCH 30 IT FIRED OFF A LETTER TO HIROSHI MITSUZUKA HEAD OF AN IMPORTANT POLICY COMMITTEE WITHIN JAPAN'S RULING LIBERAL DEMOCRATIC PARTY NOTIFYING HIM THAT US FIRMS EXPECT TO BE A PART OF ANY TELECOMMUNICATIONS PROJECT INCLUDED IN THE STIMULUS PROGRAM THE IDEA IS TO GET ON RECORD EARLY IN THE PROCESS AS SAYING THAT FOREIGN COMPANIES ARE INTERESTED AND HOPE TO COMPETE ON AN EQUAL BASIS SAID JOHN STERN WHO HEADS THE AEA OFFICE WE DON'T WANT A SITUATION WHERE THE JAPANESE COMPANIES CARVE UP THE ROAST AND THROW US A FEW BONES CRAY RESEARCH JAPAN LTD A UNIT OF CRAY RESEARCH INC SAYS IT EXPECTS 20 TO 30 OF ANY SUPERCOMPUTER PURCHASES MADE UNDER THE STIMULUS PACKAGE THIS IS A GREAT CHANCE FOR US AS WELL AS OTHER FOREIGN VENDORS SAID TAKIHIKO KATO THE COMPANY'S MARKETING MANAGER IT ISN'T CLEAR WHETHER THE US GOVERNMENT HAS FORMALLY REQUESTED JAPAN TO SET ASIDE FOR FOREIGN COMPANIES SOME OF THE STIMULUS CONTRACTS ON MARCH 26 THE OFFICE OF US TRADE REPRESENTATIVE MICKEY KANTOR ISSUED A NEWS RELEASE THAT SAID MR KANTOR POINTED OUT THE IMPORTANCE OF A FOREIGN SETASIDE DURING HIS MEETING IN WASHINGTON LAST MONTH WITH YOSHIRO MORI JAPAN'S MINISTER FOR INTERNATIONAL TRADE AND INDUSTRY BUT TAEKO TAKAHASHI A SPOKESWOMAN FOR JAPAN'S MINISTRY OF FOREIGN AFFAIRS SAYS NO SUCH SPECIFIC REQUEST WAS MADE DURING THE TALKS BETWEEN MR KANTOR AND MR MORI TOKYO OFFICIALS OBJECT TO SETTING ASIDE CONTRACTS FOR FOREIGN COMPANIES FOR A VARIETY OF REASONS AMONG THEM THEY CONTEND IS THAT SUCH ARRANGEMENTS VIOLATE THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR GATT IT WOULD BE A KIND OF REVERSE DISCRIMINATION SAYS A FINANCE MINISTRY OFFICIAL THE MAJOR PURPOSE OF THE PACKAGE IS TO STIMULATE OUR ECONOMY ARGUES TATSUYA TERAZAWA A MITI DEPUTY DIRECTOR TO SET ASIDE A CERTAIN AMOUNT FOR IMPORTS WOULD SUBTRACT FROM THAT IMPACT HOW THE STIMULUS PACKAGE GETS REVIEWED ABROAD IS OF GREAT CONCERN TO THE JAPANESE GOVERNMENT THE CLINTON ADMINISTRATION HAS PRESSED JAPAN TO DO MORE TO STIMULATE ITS ECONOMY IN HOPES OF CREATING NEW DEMAND FOR IMPORTS THEREBY REDUCING JAPAN'S SWOLLEN TRADE SURPLUS FINANCE MINISTRY OFFICIALS HAVE BEEN STUNG IN RECENT DAYS BY CRITICISM FROM PRIVATE ECONOMISTS THAT THE EMERGING STIMULUS PACKAGE MIGHTN'T CONTAIN AS MUCH GENUINE NEW PUBLIC SPENDING AS EXPECTED YESTERDAY A SENIOR MINISTRY OFFICIAL CALLED A SPECIAL NEWS CONFERENCE FOR FOREIGN JOURNALISTS TO PERSUADE THEM THAT THE GOVERNMENT IS SERIOUS ABOUT JOLTING THE ECONOMY INTO RECOVERY TO BE SURE WHILE PRIVATE ECONOMISTS AND MINISTRY BUREAUCRATS MAY DIFFER ABOUT HOW MUCH OF THE NEW PACKAGE SHOULD BE COUNTED AS GENUINELY NEW STIMULUS THERE IS LITTLE DOUBT THAT THE GOVERNMENT'S SPENDING PROGRAM IF THE FINAL VERSION RESEMBLES THE PROPOSALS FLOATED BY GOVERNMENT OFFICIALS WILL GIVE THE ECONOMY A SUBSTANTIAL JOLT EVEN SOME OF THE MOST SKEPTICAL PRIVATE ECONOMISTS NOW BELIEVE THE PACKAGE WILL PROVIDE AT LEAST SEVEN TRILLION YEN IN NET ADDITIONAL STIMULUS A SUM AT LEAST THREE TIMES THE SIZE OF THE STIMULUS PACKAGE BILL CLINTON HAS PROPOSED TO SPEED THE RECOVERY OF THE LARGER US ECONOMY GOVERNMENT OFFICIALS SAY THEY ARE WARY OF MAKING SPECIFIC COMMITMENTS ABOUT PUBLIC WORKS CONTRACTS FOR FOREIGNERS BECAUSE THEY HAVE BEEN BURNED IN THE PAST BY ISSUING ESTIMATES FOR IMPORT PROCUREMENT IN 1987 FOR INSTANCE JAPAN ANNOUNCED A GOAL OF 1 BILLION OF IMPORTED GOODS AS PART OF A SIXTRILLION YEN STIMULUS PACKAGE IT WAS RECEIVED VERY COOLLY WITH VERY LITTLE APPRECIATION FOR OUR EFFORTS SAID MR TERAZAWA 9304090024 930409 THE CLINTON BUDGET TAX PLAN GIVES SHAREHOLDERS A VOICE IN HOW COMPANIES PAY TOP EXECUTIVES BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IN RELEASING NEW DETAILS OF ITS TAX PACKAGE HAS GIVEN SHAREHOLDERS THE ULTIMATE POWER IN DECIDING WHETHER COMPANIES WOULD BE ALLOWED DEDUCTIONS ON EXECUTIVE COMPENSATION OF MORE THAN 1 MILLION UNDER THE CLINTON PROPOSAL COMPANIES WOULDN'T BE ABLE TO TAKE DEDUCTIONS FOR COMPENSATION ABOVE 1 MILLION BUT TREASURY OFFICIALS HAD INDICATED IN FEBRUARY THAT THE CAP WOULDN'T APPLY TO PAYMENTS LINKED TO AN EXECUTIVE'S PERFORMANCE YESTERDAY THE ADMINISTRATION DISCLOSED THAT THE EXECUTIVE'S PERFORMANCE GOALS WOULD HAVE TO BE APPROVED BY SHAREHOLDERS THE PROVISION COULD PUT IN THE HANDS OF SHAREHOLDERS MORE INFORMATION THAN THEY CURRENTLY RECEIVE ABOUT EXECUTIVES WHO GET FAT PAY PACKAGES STILL SOME INVESTOR ADVOCATES FROWN ON THE APPROACH WE HAVE BEEN THE MOST VOCAL CRITICS OF RUNAWAY EXECUTIVE PAY BUT THIS IS ABSOLUTELY THE LAST PLACE THE GOVERNMENT SHOULD BE IMPOSING ITSELF ESPECIALLY THROUGH THE TAX CODE SAID RALPH WHITWORTH THE PRESIDENT OF THE UNITED SHAREHOLDERS ASSOCIATION WHICH REPRESENTS MOSTLY INDIVIDUAL INVESTORS THIS IS A WRONGHEADED SOLUTION THE BUSINESS COMMUNITY ALSO VOICED CONCERN ABOUT THE LEVEL OF DETAIL COMPANIES WOULD BE REQUIRED TO DISCLOSE ACCORDING TO THE TREASURY SHAREHOLDERS MUST BE GIVEN THE MATERIAL TERMS UNDER WHICH THE COMPENSATION IS TO BE PAID INCLUDING THE PERFORMANCE GOALS SOME FEARED THIS MEANS SHAREHOLDERS WOULD HAVE TO RECEIVE EXPLICIT DETAILS ABOUT THE PERFORMANCE STANDARDS SET BY A COMPANY FAR BEYOND ANYTHING CURRENTLY MANDATED BY THE SECURITIES AND EXCHANGE COMMISSION IF SHAREHOLDERS ARE TOLD ABOUT THE BROAD PARAMETERS OF THE PLAN I DON'T SEE ANY PROBLEM SAID WEBB BASSICK A PARTNER WITH CONSULTANTS HEWITT ASSOCIATES IN LINCOLNSHIRE ILL BUT IF THEY'RE TOLD A LOT OF SPECIFICS THOSE COULD BE INTERPRETED AS BEING FORECASTS WHICH COULD OPEN UP THE COMPANY TO LAWSUITS HE ADDED THAT COMPETITORS COULD LEARN SENSITIVE INFORMATION TREASURY OFFICIALS SAID THEY ARE STILL CONSIDERING JUST HOW MUCH DETAIL COMPANIES NEED TO SPELL OUT THERE ARE ACTUALLY TWO CIRCUMSTANCES IN WHICH THE 1 MILLION CAP WOULDN'T APPLY THE FIRST IS WHEN COMPENSATION IS BASED DIRECTLY ON AN EXECUTIVE'S PERCENTAGE OF SALES OR OTHER PAY TREATED AS A COMMISSION THE SECOND IS WHEN COMPENSATION IS BASED ON THE HOLDERAPPROVED PERFORMANCE STANDARDS THOSE STANDARDS MUST BE ESTABLISHED BY A SPECIAL COMMITTEE CONSISTING OF TWO OR MORE OUTSIDE DIRECTORS AND AFTER THE SHAREHOLDERS APPROVE THE GOALS THE PANEL MUST CERTIFY THAT IN FACT THE EXECUTIVE MET THOSE GOALS REP EDWARD MARKEY D MASS CHAIRMAN OF A HOUSE FINANCE SUBCOMMITTEE CALLED THE APPROACH A SIGNIFICANT AND PROMISING FIRST STEP IN ENHANCING THE ROLE OF INDEPENDENT DIRECTORS DESPITE WORRIES ABOUT THE SHAREHOLDERAPPROVAL PROCESS BUSINESSES ALSO FOUND A FEW BRIGHT SPOTS IN THE PLAN MOST IMPORTANTLY THE TREASURY DECIDED THE PROPOSAL WOULD APPLY ONLY TO THE TOP FIVE EXECUTIVES OF A COMPANY THAT SHOULD HELP WALL STREET FIRMS AND OTHER BUSINESSES THAT MAKE LARGE PAYMENTS TO A LEGION OF EXECUTIVES THERE ARE ORGANIZATIONS WHERE COMPENSATION OVER 1 MILLION GOES QUITE A WAY DOWN THE CHAIN SAID BILL WILSON A TAX PARTNER WITH DELOITTE & TOUCHE THEY ARE SIGHING RELIEF THE PROPOSAL WOULD ONLY APPLY TO PUBLICLY HELD CORPORATIONS A LIMITATION THAT SEVERAL EXPERTS SAID WOULD SIGNIFICANTLY UNDERMINE THE PLAN'S EFFECTIVENESS ON TOP OF THAT THE TREASURY SAID THE PROPOSAL WOULDN'T AFFECT COMPENSATION PAID UNDER ANY BINDING PLAN THAT WAS IN EFFECT BY FEB 17 HOWEVER MODIFICATIONS TO SUCH A PLAN COULD JEOPARDIZE THIS FAVORABLE TREATMENT OTHER WRINKLES TO THE TAX PACKAGE THAT EMERGED YESTERDAY INCLUDED INCREASING THE LEVEL OF PROFIT SMALLBUSINESS INVESTORS CAN ENJOY WHILE STILL QUALIFYING FOR A CAPITALGAINS TAX BREAK UNDER THE ORIGINAL CLINTON PROPOSAL THE GAIN ELIGIBLE FOR A 50 TAX BREAK WOULD HAVE BEEN LIMITED TO THE GREATER OF 10 TIMES THE ORIGINIAL PRICE OF THE STOCK OR 1 MILLION THE LATTER FIGURE HAS BEEN CHANGED TO 10 MILLION AN ADJUSTMENT THAT SHOULD HELP ENTREPRENEURS WHO PUT A LOT OF SWEAT EQUITY INTO STARTUP COMPANIES BUT NOT A LOT OF MONEY ALTERING THE LIMITATION OF A CREDIT THAT ALLOWS COMPANIES TO MANUFACTURE PRODUCTS IN PUERTO RICO PRACTICALLY TAX FREE UNDER THE ORIGINAL CLINTON TAX PLAN THE CREDIT COULDN'T EXCEED 65 OF THE WAGES A COMPANY PAYS IN ITS PUERTO RICAN OPERATIONS THAT THRESHOLD HAS NOW BEEN CHANGED TO 60 AT THE SAME TIME THE PROPOSAL HAS BEEN CHANGED SO THE CREDIT COULD APPLY TO SOME PASSIVE INCOME TREASURY OFFICIALS NOTED THAT DISCUSSIONS ARE CONTINUING WITH REPRESENTATIVES OF PUERTO RICO THIS IS NOT EXACTLY SET IN STONE ONE OFFICIAL SAID INCLUDING A FORMULA SO THAT COMPANIES ON A FISCAL YEAR WOULD STILL PHASE IN THE HIGHER CORPORATE TAX RATE OF 36 AS OF JAN 1 1993 THE 36 RATE WOULD ALSO APPLY TO CORPORATE CAPITAL GAINS TIGHTENING CERTAIN PROVISIONS THAT AFFECT MULTINATIONAL COMPANIES DESPITE ALL THESE REVISIONS THE PACKAGE IS EXPECTED TO RAISE ONLY SLIGHTLY LESS REVENUE OVER SIX YEARS THAN ORIGINALLY ESTIMATED 24324 BILLION VS 24493 BILLION 9304090023 930409 MEDIA CABLE MUST AIR LOCAL SIGNALS COURT DECIDES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SPECIAL FEDERAL COURT HANDED BROADCASTERS A MAJOR VICTORY BY UPHOLDING A KEY PROVISION OF LAST YEAR'S CABLETELEVISION REREGULATION LAW THE SOCALLED MUSTCARRY PROVISION WHICH WAS HOTLY CONTESTED BY THE CABLE INDUSTRY REQUIRES CABLE SYSTEMS TO CARRY LOCAL BROADCAST SIGNALS THE SPECIAL THREEJUDGE COURT IN A 21 DECISION SAID LOCAL BROADCASTERS CAN DEMAND THAT CABLE TV COMPANIES CARRY THEIR SIGNAL THE CABLE INDUSTRY CHALLENGED THE PROVISION CITING THE FIRST AMENDMENT RIGHT OF FREE SPEECH AND THE FIFTH AMENDMENT RIGHT TO DUE PROCESS CABLE PROGRAMMERS AND OPERATORS HAVE COMPLAINED THAT SOME CABLE PROGRAMMING MAY BE BUMPED OFF OF CABLE SYSTEMS' LINEUP IN ORDER TO ACCOMMODATE BROADCASTERS' DEMANDS THE CABLE INDUSTRY WAS SURPRISED BY THE DECISION WHICH CAME ONLY A WEEK AFTER THE FEDERAL COMMUNICATIONS COMMISSION ADOPTED TOUGH LIMITS ON THE FEES CABLE OPERATORS CHARGE SUBSCRIBERS WE STILL BELIEVE OUR CASE WILL PREVAIL AND WE WILL PURSUE APPROPRIATE APPEALS SAID A SPOKESWOMAN FOR THE NATIONAL CABLE TELEVISION ASSOCIATION SHE DECLINED FURTHER COMMENT SAYING THAT THE ASSOCIATION'S LAWYERS WERE REVIEWING THE DECISION BROADCASTERS ON THE OTHER HAND WERE ECSTATIC THIS IS A GREAT DAY FOR BROADCASTERS SAID EDWARD FRITTS PRESIDENT OF THE NATIONAL ASSOCIATION OF BROADCASTERS HE SAID THAT CONGRESS'S EFFORT TO BUILD A STRONG CASE FOR MUSTCARRY HAS CLEARLY PAID OFF AND EXPRESSED THE HOPE THAT BROADCASTERS AND CABLE OPERATORS CAN NOW PUT THESE ISSUES BEHIND THEM AND WORK TOWARD A SMOOTH IMPLEMENTATION OF THE MUSTCARRY AND RETRANSMISSION CONSENT RULES SUCH COOPERATION ISN'T LIKELY WHILE THE MATTER REMAINS BEFORE THE COURTS THE SPECIAL COURT WHICH INCLUDED TWO JUDGES FROM THE FEDERAL DISTRICT COURT HERE AND ONE FROM THE APPEALS COURT WAS ESTABLISHED UNDER THE 1992 CABLETV LAW JUST WHERE THE APPEALS PROCESS MIGHT TAKE THE CASE IS UNCERTAIN THE CABLE INDUSTRY COULD TURN TO THE FEDERAL APPEALS COURT HERE BUT THE LAW APPARENTLY LEAVES OPEN THE POSSIBILITY THE INDUSTRY COULD APPEAL DIRECTLY TO THE SUPREME COURT THE APPEALS COURT MIGHT BE A FRIENDLY FORUM FOR THE CABLE INDUSTRY BECAUSE IT HAS TWICE REJECTED FCC RULES ON MUSTCARRY RIGHTS FOR BROADCASTERS SAYING THE AGENCY'S RECORD WAS INADEQUATE CHAIRMAN EDWARD MARKEY D MASS OF THE HOUSE TELECOMMUNICATIONS PANEL SAID IT IS A WISE DECISION THAT RECOGNIZES THE STRONG GOVERNMENTAL INTEREST IN PROTECTING THE VIABILITY OF FREE OVERTHEAIR BROADCASTING IN A CABLEREADY WORLD THE CASE DECIDED YESTERDAY INVOLVED CHALLENGES BROUGHT BY THE NCTA TURNER BROADCASTING SYSTEM INC WHICH OWNS CABLE NEWS NETWORK TNT AND THE WTBS SUPERSTATION DANIELS CABLEVISION INC THE DISCOVERY CHANNEL AND TIME WARNER INC THE INDUSTRY ALSO HAS TARGETED A RELATED PROVISION OF THE ACT THAT LETS TV STATION OWNERS FOR THE FIRST TIME NEGOTIATE FEES PAID BY CABLE SYSTEMS FOR USING TV PROGRAMMING THAT CABLE SYSTEMS HAVE ALWAYS TAKEN FOR FREE THE PROVISION KNOWN AS RETRANSMISSION CONSENT WILL BE DECIDED SEPARATELY AS PART OF SWEEPING CABLE INDUSTRY CHALLENGES TO THE NEW LAW 9304090022 930409 BUSINESS BRIEF HYBRIDON INC BIOTECHNOLOGY FIRM RAISES 20 MILLION IN 2 PLACEMENTS HYBRIDON INC SAID IT RAISED 20 MILLION IN THE FIRST QUARTER FROM TWO PRIVATE PLACEMENTS OF CONVERTIBLE PREFERRED STOCK THE CLOSELY HELD BIOTECHNOLOGY CONCERN SAID IT HAS RAISED A TOTAL OF 30 MILLION IN EQUITY FINANCING SINCE IT WAS FOUNDED IN 1989 THE COMPANY ADDED THAT THE AGGREGATE VALUE OF ITS EQUITY OFFERINGS AND OF CONTRACTS FOR RESEARCH COLLABORATIONS IS NOW 65 MILLION HYBRIDON OF WORCESTER MASS IS DEVELOPING SOCALLED ANTISENSE DRUGS AIMED AT GENETICALLY BLOCKING THE PRODUCTION OF PROTEINS ASSOCIATED WITH DISEASES HYBRIDON SAID BOTH NEW AND EXISTING INSTITUTIONAL AND PRIVATE INVESTORS FROM THE US AND OVERSEAS PARTICIPATED IN ITS LATEST OFFERINGS THE COMPANY ADDED THAT HOFFMANNLA ROCHE INC THE US UNIT OF SWITZERLAND'S ROCHE HOLDING LTD TOOK A 4 MILLION EQUITY POSITION IN HYBRIDON AS PART OF A STRATEGIC ALLIANCE HYBRIDON SAID PROCEEDS OF THE OFFERINGS WILL BE USED MAINLY TO FUND CLINICAL TRIALS OF ITS GEM 91 COMPOUND FOR TREATING AIDS AND THE VIRUS THAT CAUSES AIDS 9304090021 930409 BUSINESS BRIEF US SHOE CORP RETAILER EXPECTS TO REPORT LOSS FOR FISCAL FIRST QUARTER US SHOE CORP CITING LACKLUSTER SALES SAID IT EXPECTS TO REPORT A LOSS IN THE FISCAL FIRST QUARTER ENDING MAY 1 THE RETAILER EARNED 28 MILLION OR SIX CENTS A SHARE IN THE YEARAGO QUARTER US SHOE BLAMED POOR WEATHER IN MARCH FOR THE SALES DECLINE BUT THE CINCINNATI COMPANY HAS BATTLED PROBLEMS IN ITS WOMEN'S APPAREL AND FOOTWEAR GROUPS BRETT BRUBAKER AN ANALYST WITH ABRAHAM & SONS INC IN CHICAGO SAID US SHOE WAS HIT HARD IN THE SECOND AND THIRD WEEK OF MARCH WHEN SOME OF ITS STORES DIDN'T OPEN BECAUSE OF BAD WEATHER US SHOE CLOSED AT 11125 DOWN 625 CENTS ON THE NEW YORK STOCK EXCHANGE THE COMPANY DISCLOSED THE EXPECTED LOSS IN REPORTING THAT RETAIL SALES IN THE FIVE WEEKS ENDED APRIL 3 FELL 56 TO 1975 MILLION FROM 209 MILLION A YEAR AGO WOMEN'S APPAREL SALES DROPPED 10 TO 1029 MILLION OPTICAL SALES ROSE 32 TO 727 MILLION AND FOOTWEAR SALES DECREASED 98 TO 219 MILLION 9304090020 930409 BUSINESS BRIEF HECHINGER CO HOMEIMPROVEMENT RETAILER EXPECTS STORM HURT PROFIT BLAMING POOR WEATHER THROUGHOUT ITS MARKET AREA IN MARCH HECHINGER CO SAID ITS EARNINGS WILL LIKELY FALL BELOW ANALYSTS' EXPECTATIONS FOR THE FISCAL FIRST QUARTER HECHINGER BASED IN LANDOVER MD SAID EXPECTATIONS FOR THE QUARTER ENDING MAY 1 RANGED FROM 63 MILLION OR 15 CENTS A SHARE TO 76 MILLION OR 18 CENTS A SHARE LAST YEAR THE HOMEIMPROVEMENT RETAILER REPORTED A NET LOSS OF 51 MILLION OR 122 A SHARE ON SALES OF 440 MILLION THE COMPANY TOOK A RESTRUCTURING CHARGE OF 573 MILLION OR 137 A SHARE IN LAST YEAR'S FIRST QUARTER FOR THE MONTH HECHINGER SAID SALES AT STORES OPEN MORE THAN ONE YEAR DECLINED 9 GROSS SALES AT ITS 122 STORES IMPROVED 39 TO 1701 MILLION FROM 1638 MILLION IN MARCH 1992 IN OVERTHECOUNTER TRADING YESTERDAY HECHINGER SHARES CLOSED UNCHANGED AT 8625 9304090019 930409 BANKAMERICA LIKELY TO POST NONCASH CHARGE WRITEOFF OF 15 BILLION WOULD CUT INTO CAPITAL BUT NOT BANK'S PROFIT BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO BANKAMERICA CORP IS EXPECTED TO REPORT A 15 BILLION NONCASH CHARGE FOR THE FIRST QUARTER A MOVE THAT ANALYSTS SAY WILL FURTHER ERODE ITS CAPITAL AND RAISE MORE QUESTIONS ABOUT THE WISDOM OF ITS RECENT ACQUISITIONS THE ESTIMATED CHARGE BASED ON DISCLOSURES IN THE BANK'S 1992 ANNUAL REPORT AND ANALYSTS' RESEARCH WILL HAVE NO IMMEDIATE EFFECT ON QUARTERLY EARNINGS BUT SOME ANALYSTS SAY IT COULD DETER OR COMPLICATE FUTURE ACQUISITIONS BY THE EXPANSIONMINDED BANK A BANKAMERICA SPOKESMAN DECLINED TO MAKE ANY OFFICIAL COMMENT ON THE EXPECTED NONCASH CHARGE THE CHARGE WOULD STEM FROM A CHANGE IN ACCOUNTING RULES AND THE BANK'S COMPLEX ACCOUNTING TREATMENT OF ACQUISITIONS SOME 840 MILLION OF THE 15 BILLION ANTICIPATED WRITEOFF IS AN ADJUSTMENT UNDER THE FINANCIAL ACCOUNTING STANDARDS BOARD'S RULE 109 WHICH IS RELATED TO INCOME TAXES THE REST IS ADDED GOODWILL FROM THE ACQUISITION OF LOS ANGELESBASED SECURITY PACIFIC CORP A YEAR AGO AND OF FIRST GIBRALTAR BANK IN IRVING TEXAS LAST FEBRUARY GOODWILL IS THE PREMIUM PAID FOR AN ASSET IN EXCESS OF ITS BOOK VALUE NONCASH INTANGIBLE ITEMS RECORDED ON THE BANK'S BALANCE SHEET SINCE THE BEGINNING OF 1992 TOTAL ABOUT 5 BILLION NOT INCLUDING THE NEW 15 BILLION CHARGE MOSTLY IN THE FORM OF GOODWILL MUCH OF THAT GOODWILL REFLECTS HUGE LOSSES EMBEDDED IN SECURITY'S REALESTATE LOAN PORTFOLIO SOME OF WHICH WERE RECOGNIZED AT THE TIME OF THE ACQUISITION AND SOME OF WHICH SURFACED LATER YET THANKS TO A STRANGE MAGIC OF ACCOUNTING THE PENALTY FOR THE LOSSES IS SLIGHT BY USING SOCALLED PURCHASE ACCOUNTING IN THE WAKE OF THE SECURITY ACQUISITION THE LARGEST IN BANKING HISTORY THE BANK CAN WRITE OFF THOSE LOSSES OVER 25 YEARS RATHER THAN WHEN THEY OCCUR BUT THE IMMEDIATE NEGATIVE IMPACT OF ADDED GOODWILL IS THAT IT MUST BE DEDUCTED IN FIGURING CERTAIN CAPITAL RATIOS REGULATORS PAY CLOSE ATTENTION TO SUCH RATIOS WHICH INDICATE FINANCIAL STRENGTH AND CAN OBJECT TO PROPOSED ACQUISITIONS IF THEY FEEL A BUYER'S CAPITAL IS TOO LOW AT BANKAMERICA TANGIBLE COMMON EQUITY AS A PERCENTAGE OF TOTAL ASSETS FOR EXAMPLE HAS DECLINED TO ABOUT 46 AT THE END OF THE FOURTH QUARTER FROM NEARLY 6 IN EARLY 1992 THAT CAPITAL RATIO IS CONSIDERED HEALTHY BUT ONE ANALYST SAID THAT IT MAY HAVE PREVENTED THE BANK FROM BIDDING ON FAILED FIRST CITY BANCORP IN HOUSTON EARLIER THIS YEAR SEVERAL TEXAS BANKS SUCCESSFULLY BID FOR PIECES OF FIRST CITY THE LAST LARGE COMMERCIAL BANK FRANCHISE AVAILABLE FROM A GROUP HURT BY THE STATE'S 1980S SLUMP THE EXPECTED CHARGE COULD DRIVE THAT CAPITAL RATIO LOWER STILL BUT HOW MUCH IS UNCLEAR THE BANK HAS APPEALED TO REGULATORS IN HOPES OF AVOIDING HAVING TO DEDUCT THE FASB 109 ADJUSTMENTS FROM KEY CAPITAL CALCULATIONS EITHER WAY THE BANK MAY HAVE TO RAISE ADDITIONAL COMMON EQUITY TO MAKE ANY SUBSTANTIAL ACQUISITION IN THE NEAR FUTURE MOREOVER THE SERIES OF GOODWILL CHARGES ARISING FROM SECURITY'S LOSSES HAS CAUSED ANALYSTS TO REASSESS THAT DEAL'S BENEFITS AT THE TIME I THOUGHT THE DEAL WAS A HOME RUN SAID THOMAS BROWN A SECURITIES ANALYST WITH DONALDSON LUFKIN & JENRETTE NOW FOR A NUMBER OF REASONS IT LOOKS LIKE IT IS A GOOD DEAL BUT CLEARLY NOT A HOME RUN I'D CALL IT A DOUBLE ALTHOUGH BANKAMERICA'S ACCOUNTING FOR THE ACQUISITIONS HAS AFFECTED ITS EARNINGS MINIMALLY IT HAS CONFUSED INVESTORS AND MADE THEM LEERY OF OWNING THE BANK'S STOCK MR BROWN SAID BUT THE BENEFIT FROM ANNUAL COST SAVINGS WHICH THE BANK HAS SAID WILL EVENTUALLY HIT 12 BILLION OUTWEIGHS THIS TEMPORARY CONFUSION HE SAID THIS JUST FURTHER DELAYS THE POINT WHERE INVESTORS BELIEVE THAT THE SECURITY DEAL WAS A NET POSITIVE MR BROWN SAID THE WALL STREET CONSENSUS ESTIMATE IS FOR BANKAMERICA TO EARN ABOUT 434 MILLION OR 125 PER SHARE IN THE FIRST QUARTER COMPARED WITH 303 MILLION OR 121 PER SHARE IN THE YEAREARLIER PERIOD NEWS OF THE EXPECTED CHARGE CAME OUT SHORTLY BEFORE THE STOCK MARKET CLOSED IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY THE BANK'S COMMON WAS QUOTED AT 51625 UP 625 CENTS 9304090018 930409 WHAT'S NEWS WORLDWIDE NATO SAID ITS PLANES WOULD BEGIN ENFORCING THE BOSNIA NOFLY ZONE ON MONDAY THE OPERATION INVOLVING ABOUT 70 FIGHTER PLANES FROM THE US FRANCE THE NETHERLANDS AND POSSIBLY BRITAIN WILL MARK NATO'S FIRST COMBAT ROLE SINCE THE ALLIANCE'S FORMATION IN 1949 THE PENTAGON SAID 24 US FIGHTERS WOULD TAKE PART IN THE EFFORT AUTHORIZED LAST WEEK BY THE UN SECURITY COUNCIL GERMANY'S HIGHEST COURT MEANWHILE RULED THAT ITS AIR FORCE PERSONNEL COULD PARTICIPATE IN AWACS RECONNAISSANCE FLIGHTS THE WORLD COURT ORDERED SERBDOMINATED YUGOSLAVIA TO STOP ACTS OF GENOCIDE AGAINST MUSLIMS UN EFFORTS IN BOSNIA SUFFERED A MAJOR EMBARRASSMENT WHEN SERBS FOUND AMMUNITION HIDDEN IN A RELIEF TRUCK THE UN HAD REPEATEDLY DENIED SERB CHARGES THAT CONVOYS WERE BEING USED BY MUSLIMS TO SMUGGLE WEAPONS ISRAEL'S RABIN SAID HE WOULD ASK HIS CABINET TO KEEP THE WEST BANK AND GAZA STRIP SEALED INDEFINITELY TO DEFUSE TENSIONS RIGHTWING OPPOSITION PARTIES SAID THE PLAN WOULD ENCOURAGE ARAB VIOLENCE AND URGED HARSHER STEPS AGAINST MILITANTS A PALESTINIAN SPOKESWOMAN CALLED THE PROPOSED EXTENSION AN IMPEDIMENT TO MIDEAST PEACE A FEDERAL PROSECUTOR ACKNOWLEDGED THAT RODNEY KING DESERVED TO BE ARRESTED BECAUSE OF HIS ERRATIC DRIVING BUT ARGUED THAT FOUR LOS ANGELES OFFICERS BEAT HIM INTO SUBMISSION BECAUSE HE WAS DISRESPECTFUL AND THEN COVERED UP THEIR ACTIONS WITH LIES JURY DELIBERATIONS ARE LIKELY TO BEGIN TOMORROW AN IRANIAN MILITARY DELEGATION WAS SAID TO BE IN NORTH KOREA TO COMPLETE THE PURCHASE OF 150 MISSILES CAPABLE OF HITTING TARGETS 625 MILES AWAY WITH CONVENTIONAL AND CHEMICAL WARHEADS THE REPORTED DEAL WAS DESCRIBED BY AN IRANIAN OPPOSITION OFFICIAL WHO SAID THAT IRAN IS PRESSING FOR DELIVERY OF THE MISSILES THIS YEAR THE FDA 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 AGENCY'S ACTION REFLECTS CONCERN THAT YOUNG PEOPLE MISTAKENLY BELIEVE THAT CONTRACEPTIVES GUARD AGAINST AIDS AS WELL AS PREGNANCY MILWAUKEE RESIDENTS WERE TOLD TO BOIL THEIR TAP WATER AND SALES OF BOTTLED WATER SOARED AFTER THOUSANDS OF RESIDENTS BECAME SICK POSSIBLY FROM MUNICIPAL WATER HEALTH OFFICIALS SAID THAT A PARASITE COULD BE TO BLAME FOR THE FLULIKE ILLNESS SOME 800000 PEOPLE DEPEND ON THE CITY'S WATER WHICH IS DRAWN FROM LAKE MICHIGAN CLINTON MADE HIS FIRST VISIT TO THE PENTAGON AS COMMANDER IN CHIEF AND SUGGESTED THAT HE WON'T PROPOSE ANY DEEPER REDUCTIONS IN THE NATION'S DEFENSE SPENDING BEYOND THOSE SPELLED OUT IN HIS NEW BUDGET THE PRESIDENT SPENT MOST OF HIS THREEHOUR VISIT IN A BRIEFING CONDUCTED BY MEMBERS OF THE JOINT CHIEFS OF STAFF THE SECURITY COUNCIL DECIDED TO MAINTAIN THE SANCTIONS IT IMPOSED ON LIBYA A YEAR AGO OVER TRIPOLI'S REFUSAL TO TURN OVER TWO SUSPECTS IN THE 1988 BOMBING OF A PAN AM JETLINER CURRENT SANCTIONS INVOLVE AN ARMS AND AVIATION EMBARGO AND THE DOWNGRADING OF DIPLOMATIC TIES THE US SAID IT IS CONSULTING WITH ALLIES ON ADDITIONAL SANCTIONS DISCOVERY'S FIVE ASTRONAUTS BEGAN THEIR NINEDAY OZONEMEASURING MISSION AFTER THE CRAFT REACHED ORBIT THE SPACE SHUTTLE WAS LAUNCHED EARLY YESTERDAY AN EARLIER COUNTDOWN FOR THE ATMOSPHERIC RESEARCH FLIGHT WAS HALTED JUST BEFORE LIFTOFF TUESDAY BECAUSE OF FAULTY VALVE READINGS RUSSIA HELPED NEGOTIATE A TRUCE IN THE CONFLICT OVER THE TRANSCAUCASIAN ENCLAVE OF NAGORNOKARABAKH ACCORDING TO NEWS REPORTS ARMENIA AND AZERBAIJAN REPORTEDLY AGREED TO THE TRUCE AFTER TALKS WITH RUSSIA'S DEFENSE MINISTER EARLIER THIS MONTH ARMENIAN FORCES LAUNCHED AN OFFENSIVE INTO AZERBAIJAN FORCING THOUSANDS TO FLEE THE UN'S SECRETARYGENERAL DECLARED THAT VIOLENCE IN CAMBODIA WOULDN'T SCARE PEACEKEEPERS AWAY FROM FULFILLING THEIR MISSION TO SUPERVISE DEMOCRATIC ELECTIONS NEXT MONTH A FEW HOURS EARLIER A JAPANESE UN VOLUNTEER WAS SHOT TO DEATH IN CENTRAL CAMBODIA IT WAS THE SIXTH KILLING OF A PEACEKEEPER IN TWO WEEKS DIED MARIAN ANDERSON 96 CONTRALTO WHOSE 1939 CONCERT AT THE LINCOLN MEMORIAL INSPIRED THE US CIVIL RIGHTS MOVEMENT IN PORTLAND ORE AFTER A RECENT STROKE 9304090017 930409 BUSINESS BRIEF DOLE FOOD CO FIRM HAS PROFIT TURNAROUND CITES GAIN TIED TO SPINOFF DOLE FOOD CO REPORTED FIRSTQUARTER NET INCOME OF 533 MILLION OR 89 CENTS A SHARE INCLUDING A 31 MILLION PRETAX GAIN RELATED TO THE SPINOFF OF ITS RESIDENTIAL REAL ESTATE UNIT A YEAR EARLIER THE WESTLAKE VILLAGE CALIF FOOD PRODUCER REAL ESTATE CONCERN AND RESORT OPERATOR HAD A NET LOSS OF 228 MILLION OR 38 CENTS A SHARE WHICH REFLECTED A 495 MILLION NET CHARGE FROM AN ACCOUNTING CHANGE IGNORING NONRECURRING ITEMS DOLE SAID FIRSTQUARTER PROFIT CLIMBED 10 TO 295 MILLION FROM 267 MILLION REVENUE ROSE 18 TO 7665 MILLION FROM 7533 MILLION THE COMPANY SAID DECLINING RESULTS FROM BANANA OPERATIONS WERE OFFSET BY IMPROVED BUSINESS AT ITS FRESHVEGETABLE GROUP WHERE EARNINGS ROSE BECAUSE OF HIGHER LETTUCE AND CELERY PRICES 9304090016 930409 STARTER CORP STOCK SURGES IN FIRST DAY ANALYST IS CAUTIOUS BY DAVE PETTIT AND LOURDES LEE VALERIANO STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STARTER CORP HIT THE GROUND RUNNING YESTERDAY THE SPORTSWEAR COMPANY'S 78 MILLIONSHARE OFFERING WAS PRICED AT 21 1/2 FAR ABOVE THE EXPECTED 16 TO 18 RANGE TRADING ON THE NEW YORK STOCK EXCHANGE OPENED AT 27 AND THE SHARES ROSE AS HIGH AS 28 BEFORE SETTLING DOWN TO 25 1/8 STARTER WAS AMONG THE MOST ACTIVE ISSUES WITH 61 MILLION SHARES TRADED THE NEW HAVEN CONN COMPANY MAKES OFFICIALLY LICENSED TEAM SPORTSWEAR IT ALSO IS A LICENSEE FOR 150 COLLEGES AND UNIVERSITIES BUT MARK BASHAM AN ANALYST AT STANDARD & POOR'S CORP SAYS HE THINKS THE STOCK MAY HAVE GOTTEN AHEAD OF ITSELF HE HAD RECOMMENDED BUYING STARTER AND HOLDING IT FOR A SHORT TIME WHEN TALK WAS THAT THE ISSUE WOULD BE AVAILABLE FOR A PRICE IN THE MID TO UPPER TEENS HE WOULDN'T HAVE EVEN ATTEMPTED TO BUY IT AT 2150 HE SAYS TRUE MERRILL LYNCH & CO THE LEAD UNDERWRITER HAD A SOLID STORY TO SELL THE MARKET FOR SPORTS APPAREL HAS GROWN AS MUCH AS 30 A YEAR RECENTLY SAYS MERCEDES SANCHEZ AN ANALYST AT RAYMOND JAMES & ASSOCIATES AND STARTER HAS BEEN AMONG THE INDUSTRY LEADERS STARTER'S SALES HAVE MORE THAN DOUBLED SINCE 1990 REACHING 2827 MILLION LAST YEAR FROM 1246 MILLION THREE YEARS AGO EARNINGS HAVE KEPT PACE RISING TO 252 MILLION LAST YEAR FROM 127 MILLION IN 1990 BUT S&P'S MR BASHAM SAYS HE HAS CONCERNS ABOUT SEVERAL LICENSING CONTRACTS WITH SPORTS LEAGUES THAT ARE DUE TO EXPIRE IN COMING YEARS HE SAYS TEAM OWNERS ESPECIALLY IN BASEBALL AND FOOTBALL MAY PUSH FOR HIGHER ROYALTY PAYMENTS FROM STARTER AND OTHER MAKERS OF LICENSED PRODUCTS TO HELP OFFSET DECLINES THE TEAMS EXPERIENCE IN THEIR REVENUES FROM TELEVISION COVERAGE A SPOKESMAN FOR STARTER COULDN'T BE REACHED FOR COMMENT THE IPO FETCHED 1666 MILLION 323 MILLION OF WHICH WENT TO DAVID BECKERMAN STARTER'S CHIEF EXECUTIVE AND PRINCIPAL SHAREHOLDER WHO SOLD 15 MILLION SHARES HE RETAINS A 63 STAKE DOWN FROM 90 IN AN EFFORT TO EASE CONCERNS OVER THE CASHOUT MR BECKERMAN HAD AGREED TO LIMIT HIS SALARY AFTER THE IPO TO 750000 WITH BONUSES NOT TO EXCEED 11 MILLION STARTER SAID IT PLANS TO USE ITS PROCEEDS FROM THE OFFERING TO REPAY DEBT LONGTERM DEBT TOTALED 57 MILLION AT THE END OF 1992 RAYMOND JAMES' MS SANCHEZ SAYS STARTER'S SHARES ARE CHANGING HANDS AT MORE THAN 25 TIMES THE COMPANY'S EARNINGS FOR THE PAST 12 MONTHS THAT'S WELL ABOVE THE 21 TIMES TRAILING 12MONTH PROFITS AT WHICH SPORTSWEAR RIVAL NUTMEG INDUSTRIES IS TRADING SHE ADDS THOUGH THAT STARTER IS A MORE MATURE COMPANY THAN NUTMEG MORE ESTABLISHED THE SHARES OF NUTMEG WHICH IS BASED IN TAMPA FLA WERE UP 1/8 TO 13 1/4 YESTERDAY ON BIG BOARD VOLUME OF 231700 SHARES MS SANCHEZ HAS A BUY RECOMMENDATION ON NUTMEG AND HAS SET A PRICE TARGET OF 17 1/2 FOR THE STOCK OVER THE NEXT 12 MONTHS 9304090015 930409 ABREAST OF THE MARKET STOCKS ARE MIXED AS PROFIT WORRY OFFSETS POSITIVE INFLATION FIGURES BY DAVE PETTIT AND MARY ROMANO STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WORRIES ABOUT CORPORATE PROFITS OFFSET ENCOURAGEMENT FROM A POSITIVE INFLATION REPORT LEAVING STOCK PRICES MIXED A LATE WAVE OF BUYING MODERATED SOME LOSSES BUT MOST MARKET INDEXES ENDED THE SESSION IN NEGATIVE TERRITORY THE DOW JONES INDUSTRIAL AVERAGE EASED 054 OR 002 TO 339648 BUT STEEP LOSSES POSTED BY US SURGICAL AND ALUMINUM CO OF AMERICA AFTER DISAPPOINTING EARNINGS DISCLOSURES REMAINED THROUGH THE CLOSE US SURGICAL PLUMMETED 15 1/4 TO 31 3/8 ALCOA LOST 2 TO 60 3/8 THESE EARNINGS SCARES FOLLOW ONE LAST FRIDAY FROM PHILIP MORRIS WHICH CAUSED THAT STOCK TO TUMBLE 23 IN ONE DAY AND ANOTHER ON TUESDAY FROM SOFTWARE AND PROCESSING SERVICES COMPANY POLICY MANAGEMENT SYSTEMS WHICH SENT THAT ISSUE PLUNGING 43 THESE POTHOLES HAVE TAKEN A TOLL ON INVESTOR PSYCHOLOGY ANALYSTS SAID EVEN NEWS THAT MARCH CORE PRODUCER PRICES WERE LOWER THAN EXPECTED AND A RESULTING EXPLOSIVE RALLY IN BOND PRICES COULDN'T CONSOLE STOCK INVESTORS THE STANDARD & POOR'S 500 STOCK INDEX LOST 089 OR 020 TO 44184 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DROPPED 048 OR 020 TO 24384 ADVANCING BIG BOARD ISSUES THOUGH TOPPED DECLINERS BY A 988TO878 MARGIN NEW YORK STOCK EXCHANGE VOLUME EASED SOMEWHAT TO 2825 MILLION SHARES FROM 2963 MILLION WEDNESDAY ALTHOUGH THE LABOR DEPARTMENT SAID ITS PRODUCER PRICE INDEX ROSE BY A SLIGHTLY MORETHANEXPECTED 04 LAST MONTH ITS SOCALLED CORE INFLATION RATE WAS UP JUST 01 ANALYSTS HAD FORECAST A 03 RISE IN THE CORE RATE LONGTERM GOVERNMENT SECURITIES ROCKETED THE TREASURY'S 30YEAR BOND ROSE 1 1/4 POINT DEPRESSING ITS YIELD TO 685 ITS YIELD WAS ABOVE 7 EARLIER THIS WEEK THE STOCK MARKET HAS BEEN DRIVEN FOR A LONG TIME BY LIQUIDITY AND INTEREST RATES BUT I THINK THE NEXT PHASE FOR THE MARKET IS GOING TO BE EARNINGS DRIVEN SAID JOSEPH DEMARCO DIRECTOR OF EQUITY TRADING AT MARINVEST A UNIT OF HONGKONG & SHANGHAI BANK US SURGICAL PLUNGED AFTER THE NORWALK CONN MEDICAL PRODUCTS COMPANY SAID IT EXPECTS SECOND AND THIRDQUARTER SALES TO BE SIGNIFICANTLY LOWER AND SECONDQUARTER EARNINGS TO BE SHARPLY LOWER THAN FORECAST THE STOCK HAS BEEN BUFFETED MOST OF THE WEEK BY NEGATIVE COMMENTS FROM SECURITIES ANALYSTS ALCOA LOST GROUND AFTER IT REPORTED THAT FIRSTQUARTER EARNINGS FELL TO 31 CENTS A SHARE DOWN FROM EARNINGS FROM OPERATIONS OF 64 CENTS IN THE YEARAGO QUARTER A SMITH BARNEY HARRIS UPHAM ANALYST CONSEQUENTLY CUT 1993 AND 1994 ESTIMATES STEVEN EINHORN MARKET STRATEGIST AT GOLDMAN SACHS SAID HE EXPECTS MORE EARNINGS DISAPPOINTMENTS FROM DEEP CYCLICALS SUCH AS METAL PRODUCERS AND BASIC COMMODITY COMPANIES EXPECTATIONS ARE TOO HIGH FOR THAT GROUP HE SAID THE US ECONOMY IS ONLY GROWING SLOWLY AND EUROPE IS STILL SINKING BUT MR EINHORN DOESN'T SEE A BROAD MARKET SELLOFF THE NEGATIVE EARNINGS NEWS WILL CONTINUE TO BE BALANCED AGAINST LOW INTEREST RATES AND MILD INFLATION HE SAID STOCK PRICES MR EINHORN PREDICTED WILL BE STUCK IN THIS AREA FOR A WHILE FOR THE WEEK THE DOW JONES INDUSTRIAL AVERAGE ADDED 2567 OR 076 WHILE THE S&P 500 ADDED 045 OR 010 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 035 OR 014 THE MARKET WILL BE CLOSED TODAY IN OBSERVANCE OF GOOD FRIDAY AN INITIAL OFFERING STARTER CORP CLOSED AT 25 1/8 AFTER BEING PRICED AT 2150 THROUGH UNDERWRITERS LED BY MERRILL LYNCH THE INITIAL OFFERING OF THE DESIGNER AND MARKETER OF OUTERWEAR ACTIVE WEAR AND HEADWEAR THAT CARRY SPORTS TEAM LOGOS WAS OF 7750000 COMMON SHARES KYSOR INDUSTRIAL JUMPED 1 TO 18 1/8 AFTER THE MAKER OF REFRIGERATED DISPLAY CASES SAID IT EXPECTS TO REPORT FIRSTQUARTER OPERATING RESULTS SIGNIFICANTLY HIGHER THAN A YEAR AGO CINCINNATI MILACRON SURGED 2 5/8 TO 23 1/8 AN OFFERING OF 45 MILLION COMMON SHARES OF THE MACHINE TOOL MAKER WAS PRICED LATE WEDNESDAY AT 2050 EACH PROCEEDS FROM THE OFFERING ARE EXPECTED TO BE USED TO REDEEM 40 MILLION TO 60 MILLION OF THE COMPANY'S 12 SINKING FUND DEBENTURES DUE 2010 AND TO REPAY CERTAIN DOMESTIC AND OVERSEAS BANK DEBT LIFETIME LOST 3 5/8 TO 21 5/8 AFTER ABBEY HEALTHCARE GROUP'S DECISION TO WITHDRAW ITS ACQUISITION PROPOSAL THE HOME HEALTH SERVICES CONCERN SAID IT STILL INTENDS TO EXPLORE THE POSSIBLE SALE OF THE COMPANY AND OTHER VALUEENHANCING TRANSACTIONS CMS ENERGY JUMPED 1 3/8 TO 21 1/4 FIRST BOSTON RAISED ITS INVESTMENT RATING ON THE COMPANY TO STRONG BUY FROM BUY FIRST BOSTON ALSO RAISED ITS 1993 EARNINGS ESTIMATE FOR THE COMPANY TO 185 A SHARE FROM 175 WESTINGHOUSE ELECTRIC GAINED 7/8 TO 15 1/8 AFTER IT SAID IT AGREED TO SELL MOST OF THE COMMERCIAL REAL ESTATE ASSETS OF ITS FINANCIAL SERVICES UNIT TO A NEWLY FORMED LIMITED PARTNERSHIP FOR 1 BILLION AN AFFILIATE OF AMERICAN EXPRESS'S LEHMAN BROTHERS UNIT WILL BE GENERAL PARTNER OF THE PARTNERSHIP COCA COLA CO LOST 1/4 TO 39 3/4 THE COMPANY WAS AMONG THOSE FINED BY THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY FOR VIOLATIONS OF THE CLEAN WATER ACT THE COCACOLA FOODS DIVISION OF AUBURNDALE FLA WAS FINED 89889 ANHEUSERBUSCH LOST 1 1/8 TO 49 5/8 AFTER IT WAS FINED 20000 BY THE EPA FOR SIMILAR VIOLATIONS GOODYEAR TIRE JUMPED 2 5/8 TO 78 MORGAN STANLEY ANALYST SCOTT MERLIS SAID HE RAISED HIS 1993 EARNINGS ESTIMATE FOR THE COMPANY TO 635 A SHARE FROM 610 HE SAID GOODYEAR'S EUROPEAN SALES HAVE BEEN STRONGER THAN EXPECTED STONE CONTAINER DROPPED 1 1/4 TO 7 1/2 AFTER SMITH BARNEY CUT ITS INVESTMENT RATING TO SPECULATIVE HOLD FROM SPECULATIVE BUY THE MAKER OF CORRUGATED CONTAINERS AND PAPERBOARD SAID IT INDEFINITELY DEFERRED PLANS TO RAISE 500 MILLION IN AN EQUITY SALE OR SERIES OF EQUITY SALES BECAUSE OF MARKET CONDITIONS 9304090014 930409 THURSDAY'S MARKETS BONDS SURGE AS INFLATION SLOWS STOCKS FINISH MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL SLOWING INFLATION SENT BOND PRICES SOARING STOCK PRICES WERE MIXED AND THE DOLLAR FELL HITTING A RECORD POSTWAR LOW AGAINST THE YEN LONGTERM TREASURY BONDS ROCKETED UP A POINT AND A QUARTER OR 1250 FOR EACH 1000 FACE AMOUNT BUT THE DOW JONES INDUSTRIAL AVERAGE EDGED DOWN 054 POINT TO 339648 AND STANDARD & POOR'S 500STOCK INDEX LOST 089 TO 44184 THE NASDAQ COMPOSITE INDEX SLUMPED 255 TO 66633 BOND PRICES SPURTED AFTER THE LABOR DEPARTMENT REPORTED THAT THE CORE RATE OF INFLATION AT THE WHOLESALE LEVEL IN MARCH ROSE JUST 01 THE CORE RATE HAD INCREASED A MORE WORRISOME 03 THE MONTH BEFORE INCLUDING VOLATILE FOOD AND ENERGY PRICES THE PRODUCER PRICE INDEX INCREASED 04 IN MARCH MOST OF THE INCREASE RESULTED FROM A 13 JUMP IN ENERGY PRICES NEVERTHELESS ANALYSTS DOUBT THE BOND MARKET IS HEADED FOR A SUSTAINED RALLY THEY SAID BOND PRICES WERE RIPE FOR A SHARP REBOUND AFTER PLUNGING IN THE PAST FEW WEEKS ON A SPATE OF BAD INFLATION NEWS IT WOULD BE A MISTAKE TO SAY THE BOND MARKET HAS REESTABLISHED AN UPWARD TREND SAID DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES/BUTCHER & SINGER IN RICHMOND VA IT'S JUST DIGESTING SOME OF THE LOSSES IT HAD RECENTLY MR HAYS SAID BONDS ALSO GOT A BOOST FROM LINGERING CONCERNS ABOUT THE ECONOMY BUT HE EXPECTS THE RECOVERY TO SHOW MORE STRENGTH AS THE YEAR PROGRESSES WHICH WILL PUT ADDITIONAL PRESSURE ON BOND PRICES AS ECONOMIC CONCERNS START TO DWINDLE WE COULD SEE THE LONGBOND YIELD SLOWLY CLIMBING HIGHER TO ABOUT 74 BY THE END OF THE YEAR HE SAID STOCK PRICES FAILED TO FOLLOW BOND PRICES HIGHER YESTERDAY PARTLY BECAUSE OF THOSE WORRIES ABOUT THE ECONOMY MR HAYS SAID WHAT'S GOOD FOR BONDS RIGHT NOW IS BAD FOR STOCKS HE SAID WE ARE SEEING SOME GOOD INFLATION NEWS BUT WE ALSO HAVE THESE CONCERNS ABOUT THE ECONOMY STOCK MARKET INVESTORS MAY ALSO BE SUFFERING A CASE OF WEAK NERVES SAID LARRY RICE CHIEF MARKET STRATEGIST AT JOSEPHTHAL LYON & ROSS THE MINEFIELD OF DISASTERS WE'VE SEEN OVER THE LAST FEW DAYS HAS SOBERED PEOPLE UP ABOUT EQUITIES HE SAID IT'S MADE PEOPLE A LITTLE CAUTIOUS THE LATEST DISASTER BELONGED TO US SURGICAL WHICH PLUNGED 15 1/4 TO 31 3/8 AFTER SEVERAL BROKERAGE FIRMS SLASHED THEIR EARNINGS ESTIMATES AND INVESTMENT RATINGS ON THE COMPANY US SURGICAL HAD SAID WEDNESDAY THAT IT EXPECTS WEAKER EARNINGS THIS YEAR US SURGICAL'S TROUBLES FOLLOWED PHILIP MORRIS'S PUMMELING LAST WEEK AFTER THE COMPANY SAID IT WAS CUTTING THE PRICE OF ITS MARLBORO BRAND CIGARETTES MR RICE NOTED THAT DESPITE THE BATTERING OF SOME INDIVIDUAL STOCKS THE MARKET AVERAGES CONTINUE TO HOLD UP IT'S HARD TO BELIEVE AFTER THE DEBACLES WE'VE SEEN THAT THE BULL MARKET IS STILL INTACT HE SAID BUT THIS IS A MARKET IN NEED OF A CORRECTION SOME INVESTORS CONCEDE THEY'RE HAVING DIFFICULTY FINDING GOOD STOCKS AT REASONABLE PRICES EDWIN WALCZAK CHIEF INVESTMENT OFFICER AT VONTOBEL USA SAID HE HAS BOUGHT ONLY TWO STOCKS IN THE PAST TWO MONTHS AND HAS BOOSTED HIS CASH LEVEL TO 20 OF HIS PORTFOLIO HE IS SKEPTICAL OF THE RUSH INTO CYCLICAL STOCKS A LOT OF SCHLOCKY STOCKS ARE RISING HE SAID BUT I'M NOT EXACTLY GETTING THE SENSE THE ECONOMY IS TAKING OFF WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 049 TO 10326 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 282474000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 988 ISSUES ROSE AND 878 FELL BOND PRICES SURGED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL TO 685 THE DOLLAR SLIPPED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16055 MARKS AND 11335 YEN COMPARED WITH 16195 MARKS AND 11352 YEN WEDNESDAY 9304090013 930409 SNAMPROGETTI WINS CONTRACT MILAN ITALIAN STATE ENGINEERING COMPANY SNAMPROGETTI SPA SAID IT WON A 50 BILLION LIRE CONTRACT 314 MILLION TO BUILD A FERTILIZER PLANT FOR CHINA PETROCHEMICAL INTERNATIONAL CO THE PLANT WILL HAVE CAPACITY OF 1760 METRIC TONS A DAY AND WILL BE BUILT NEAR LANZHOU IN THE GANSU PROVINCE OF CHINA SNAMPROGETTI SAID SNAMPROGETTI IS PART OF ITALY'S GIANT STATE ENERGY HOLDING COMPANY ENTE NAZIONALE IDROCARBURI 9304090012 930409 THE AMERICAS PERU'S LEADER ON THE NEW LATIN MENTALITY BY ALBERTO FUJIMORI LIMA THE DISMANTLING OF THE SOVIET UNION THE RESULTING END OF THE BIPOLAR ERA AND THE COUNTRYBYCOUNTRY REJECTION OF SOCIALISM HAVE HAD A GREAT IMPACT ON THE POLITICAL AND ECONOMIC STRUCTURE OF ALL THE LATIN AMERICAN COUNTRIES WITH THE EXCEPTION OF CHILE WHICH ALREADY HAD BEEN PURSUING A LIBERAL ECONOMIC MODEL THROUGHOUT MOST OF THE 1970S AND '80S ALMOST ALL THE COUNTRIES OF THE REGION HAVE BEGUN TO PULL BACK FROM ECONOMIC POLICIES THAT DREW AT LEAST SOME OF THEIR RATIONALE FROM THE EXISTENCE OF 20THCENTURY SOCIALISM WHILE A HIGHLY CONTROLLED COLLECTIVIST ECONOMY WAS FIRMLY ESTABLISHED IN ONLY ONE LATIN AMERICAN COUNTRY THE HISTORY OF THE REGION IS RIFE WITH EXAMPLES OF POLITICAL EXPERIMENTS IN WHICH THE STATE PLAYED A PREPONDERANT ROLE THESE RESTRICTIVE STATIST POLICIES PROBABLY PREVENTED CERTAIN COUNTRIES IN THE REGION FROM BECOMING DEVELOPED ECONOMIES AND CERTAINLY LED TO A STEEP DECLINE IN THE ECONOMIC INDICATORS THROUGHOUT LATIN AMERICA THERE IS A FEELING THAT DECADES OF PROGRESS HAVE BEEN WASTED DUE TO THE APPLICATION OF COMPLETELY ERRONEOUS ECONOMIC POLICIES WHILE THESE POLICIES INVARIABLY LED TO SERIOUS ECONOMIC CRISES THE DETERIORATION OF LATIN AMERICA'S ECONOMIES HAS TAKEN PLACE IN DIFFERENT WAYS PERU WHICH HAS ENFORCED THESE STATIST POLICIES SINCE 1963 IS AN EXTREME CASE HOWEVER HERE AS ELSEWHERE THE DETERIORATION OF THE ECONOMY AND OF THE STANDARD OF LIVING HAVE RESULTED DIRECTLY FROM ADOPTING PSEUDODISTRIBUTIVE ECONOMIC POLICIES LINKED TO THESE ECONOMIC STRATEGIES AND TO THE IDEOLOGIES THAT SUPPORTED THEM THERE EXISTS A POLITICAL CLASS THAT I CALL TRADITIONAL THIS POLITICAL CLASS EMBRACES A SPECTRUM RUNNING FROM THE MERCANTILIST RIGHTWINGERS TO THE BOLSHEVIK LEFTWINGERS NOTWITHSTANDING THEIR IDEOLOGICAL AND POLITICAL DIFFERENCES THEY ACT AS A BLOC COUNTERACTING ANY PROGRAM TO ESTABLISH A MODERN ECONOMY OF COURSE TODAY'S TRADITIONALIST HAS LEARNED TO CHANGE A BIT WITH THE TIMES NO LONGER DOES HIS FERVID ANTIIMPERIALIST PREACHING OPPOSE THE POLICY OF SAY OPENING UP THE COUNTRY TO FOREIGN CAPITAL THOUGH THIS WAS AN IMPOSSIBLE IDEA TO SELL ANYWHERE IN LATIN AMERICA JUST 10 YEARS AGO AGAIN WITH THE SOLE EXCEPTION OF CHILE THE POPULISTS AND THE COMMUNISTS USE A DIFFERENT STRATEGY BECAUSE IT IS NO LONGER CHIC TO PROCLAIM ONESELF TO BE REVOLUTIONARY AND ANTIIMPERIALIST THEREFORE THEY SPECIFICALLY ATTACK REFORMS THAT LEAD TO THE MODERNIZATION OF THE ECONOMY AND OF SOCIETY BY DEMAGOGICALLY CLAMORING FOR SHORTENING THE TIME LIMITS TO ACHIEVE A COMFORTABLE SITUATION FOR EXAMPLE I HAVE BEEN PRESIDENT OF PERU FOR TWO AND A HALF YEARS WHEN I BEGAN MY MANDATE THE ECONOMY WAS BANKRUPT I HAVE HAD TO REBUILD THE ECONOMY AND THE COUNTRY NEVERTHELESS THE MAIN ARGUMENT OF THE MOST OBSTINATE OPPOSITION WHICH FORTUNATELY HAS BEEN ONLY A MINORITY WITHIN A MINORITY IS THAT THE TIME HAS COME TO END RADICALLY ALL THE PROBLEMS AT ONCE TERRORISM MISERY UNDERDEVELOPMENT THESE SAME CRITICS WERE UNABLE TO SOLVE ALL THESE PROBLEMS IN 60 YEARS YET THEY NOW DEMAND AN INCREDIBLE AND MIRACULOUS CHANGE WITHIN TWO OR THREE YEARS FOR ALL THEIR RHETORIC THE UPDATED POPULISTS HAVE BEEN UNABLE TO MAKE HEADWAY AS THEY ONCE DID IN HARD TIMES THIS IS BECAUSE OF A HIGHLY POSITIVE DEVELOPMENT IN LATIN AMERICA A NEW MENTALITY AMONG THE PEOPLE THEY DO NOT ALLOW THEMSELVES TO BE MANIPULATED ANYMORE BY THE DEMAGOGUES WHO SEEK OUT POPULAR IMPATIENCE TO FUEL THEIR POLITICAL MACHINES VOTERS TODAY REALIZE THAT THE DECEPTIVELY EASY POLICIES OF POPULIST POLITICIANS ARE RESPONSIBLE FOR THE CRISES THE PEOPLE IN PERU AND ELSEWHERE IN LATIN AMERICA HAVE BEGUN TO DISTANCE THEMSELVES FROM THE POPULISTS WITH THE QUICK FIXES AND HAVE BEGUN TO EXPRESS THE PATIENCE NECESSARY FOR SUBSTANTIVE CHANGE THEY KNOW THAT WORK AND SACRIFICE WILL BE NECESSARY TO BUILD THE SOLID FOUNDATIONS OF A NEW SOCIETY FACED WITH POPULAR REJECTION THE LATIN AMERICAN POLITICAL CLASS CAN ONLY OPT TO CHANGE TO RENEW ITSELF IF IT REJECTS THIS OPTION IT WILL BECOME EXTINCT NEW LEADERS ARE APPEARING EVERYWHERE PRAGMATIC MEN AND WOMEN WITHOUT TRADITION OR PARTISAN COMMITMENTS AND BACKED BY THE WILL OF A PEOPLE WHO ARE TIRED OF THE FALSE PROMISES OF THOSE WHO WORSHIP A FAILED AND VIRTUALLY EXTINCT WORLD VISION MR FUJIMORI IS THE PRESIDENT OF PERU THIS ARTICLE WAS ADAPTED FROM AN APRIL 5 ARTICLE IN THE PERUVIAN NEWSPAPER EL PERUANO 9304090011 930409 MARKETING & MEDIA SPORTS ILLUSTRATED EDITION FOR CANADA GETS CLEARANCE OTTAWA THE CANADIAN GOVERNMENT SAID IT WON'T STOP SPORTS ILLUSTRATED FROM PUBLISHING A CANADIAN EDITION THAT COMPETES FOR CANADIAN ADVERTISING DOLLARS THE GOVERNMENT SAID THE TIME WARNER INC PUBLICATION HASN'T RUN AFOUL OF CANADIAN RULES THAT PREVENT US AND OTHER FOREIGN MAGAZINES FROM SHIPPING TO CANADA REGIONAL ISSUES AIMED AT A CANADIAN AUDIENCE SUCH ISSUES CONTAIN THE SAME EDITORIAL CONTENT THAT APPEARS IN THE HOME COUNTRY BUT SUBSTITUTE CANADIAN ADS FOR SOME FOREIGN ONES THE RULES ARE INTENDED TO PREVENT FOREIGN MAGAZINES FROM OFFERING DISCOUNTED RATES TO CANADIAN ADVERTISERS UNDER EXISTING LEGISLATION THE CANADIAN GOVERNMENT CAN SEIZE THE NEXT FOUR ISSUES OF ANY FOREIGN MAGAZINE THAT VIOLATES THE RULES SPORTS ILLUSTRATED WAS ABLE TO SKIRT THE REGULATIONS BY TRANSMITTING ITS CANADIAN EDITION ELECTRONICALLY TO TORONTO AND PRINTING IT THERE THE FIRST ISSUE OF SPORTS ILLUSTRATED CANADA CONTAINED ABOUT 40 PAGES OF CANADIAN ADVERTISING WORTH ABOUT 250000 CANADIAN DOLLARS US198250 THE MAGAZINE PLANS FIVE ADDITIONAL CANADIAN ISSUES THIS YEAR 9304090010 930409 EDUCATION SCHOOL GAMES MAKE MATH CHILD'S PLAY BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IT'S TIME TO STUDY MULTIPLICATION STUDENTS IN SHARI CLEVELAND'S FIFTHGRADE MATH CLASS REACH FOR A BINGOLIKE GAME CALLED QUIZMO FOR GEOMETRY THE CLEVELAND OHIO STUDENTS PLAY PENTAMANOS A GAME RESEMBLING DOMINOES FOR FRACTIONS THEY WRAP STRING IN PATTERNS AROUND A STICK TO RAP MUSIC IN THE GAME MATH WRAP UPS WITH CONCERN ABOUT MATH PROFICIENCY RISING MORE ELEMENTARY SCHOOLS ARE INTEGRATING GAMES INTO THEIR MATH CURRICULA AS A WAY TO KEEP STUDENTS' ATTENTION THE GAMES ARE SUPPOSED TO MAKE MATH FUN AND BOOST ENTHUSIASM FOR A SUBJECT MANY YOUNGSTERS FIND FRUSTRATING THE GAMES ARE CHANGING THE ATTITUDE STUDENTS HAVE TOWARD MATH SAYS MS CLEVELAND WHOSE TREMONT ELEMENTARY SCHOOL STUDENTS SPEND 50 OF THEIR CLASS TIME PLAYING CARD AND BOARD GAMES SINCE TREMONT ELEMENTARY BEGAN USING MATH GAMES THREE YEARS AGO STUDENT TEST SCORES ON THE COMPUTATION PORTION OF THE STANDARDIZED CALIFORNIA ACHIEVEMENT TEST HAVE INCREASED SCHOOL OFFICIALS SAY EIGHTYFOUR PERCENT OF FIFTHGRADERS FOR EXAMPLE SCORED AVERAGE OR ABOVE AVERAGE ON THE TEST IN 1992 COMPARED WITH 78 IN 1991 WHEN STUDENTS LIKE MATH THEY LEARN IT SAYS MS CLEVELAND BUT CRITICS MAINTAIN THAT THE NEW EMPHASIS ON FUN SENDS THE WRONG MESSAGE I'M NOT SURE IT'S REALISTIC TO TELL KIDS THAT YOU DON'T HAVE TO DO ANYTHING IF IT'S NOT FUN SAYS DAVID GEARY A UNIVERSITY OF MISSOURI PSYCHOLOGY PROFESSOR WHO STUDIES HOW CHILDREN LEARN MATH MOREOVER SINCE MANY GAMES HAVE BEEN INCLUDED IN CURRICULA FOR ONLY ABOUT THREE YEARS NO ONE CAN BE SURE THEY WILL MAKE A DIFFERENCE IN THE LONG RUN THERE ISN'T ANY ASSESSMENT OF WHAT WILL WORK AND WHAT WON'T SAYS PROF GEARY KIDS MAY SHOW A SHORTTERM BENEFIT PLAYING GAMES BUT I REALLY WONDER IF WHAT THEY LEARN WILL STAY WITH THEM GAMES OR NOT THE MATH DEFICIENCIES ARE SIGNIFICANT ACCORDING TO THE LATEST FEDERALLY SPONSORED NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS REPORT RELEASED YESTERDAY 40 OF ALMOST 250000 STUDENTS IN GRADES FOUR EIGHT AND 12 ASSESSED NATIONWIDE COULDN'T MEET BASIC MATH STANDARDS AT THEIR GRADE LEVEL IN 1992 IN THE NORTHEAST 41 OF EIGHTHGRADERS DIDN'T MEET BASIC MATH STANDARDS COMPARED WITH 35 IN 1990 WHILE AVERAGE PROFICIENCY SCORES FOR EIGHTHGRADERS NATIONWIDE DID RISE A SIGNIFICANT FOUR POINTS TO 266 IN 1992 FROM 262 IN 1990 WHEN THE LAST REPORT WAS ISSUED ONLY 1 OF EIGHTHGRADERS HAD CONSISTENT SUCCESS IN GEOMETRY ALGEBRA AND BASIC MATHEMATICAL FUNCTIONS MARY LINDQUIST PRESIDENT OF THE NATIONAL COUNCIL OF TEACHERS OF MATHEMATICS WHOSE STANDARDS URGE LESS DRILLING AND COMPUTATION IN MATH EDUCATION SAYS THAT WHILE GAMES CAN BE MOTIVATIONAL SOMETIMES CHILDREN PLAY GAMES WITHOUT THINKING SHE ADDS TEACHERS NEED TO TALK WITH KIDS ABOUT THE GAME AND ITS STRATEGY SO THEY'RE SURE CHILDREN ARE LEARNING GAMES OF COURSE HAVE ALWAYS BEEN USED IN SCHOOLS BUT WHEREAS THEY WERE PREVIOUSLY USED RANDOMLY BY TEACHERS WHO WANTED TO REINFORCE A LESSON OR REWARD STUDENTS GAMES ARE NOW A REQUIRED PART OF DAILY LESSON PLANS IN SOME SCHOOLS TWENTYNINE SCHOOLS IN THE ERIE PA ROMAN CATHOLIC SCHOOL DIOCESE FOR EXAMPLE THIS YEAR MANDATED FOR THE FIRST TIME THAT THEIR FOURTHGRADE TO EIGHTHGRADE STUDENTS SPEND 10 MINUTES OF EVERY MATH PERIOD PLAYING THE CARD GAME 24 IN WHICH PLAYERS COMPETE TO SEE WHO CAN FIRST ANALYZE HOW A GIVEN FOUR NUMBERS ADD SUBTRACT MULTIPLY OR DIVIDE TO EQUAL 24 MY HYPOTHESIS IS OUR STANDARDIZED TEST SCORES WILL GO UP SAYS SANDY ANDREWS DIRECTOR OF CURRICULUM FOR THE DIOCESE BUT SHE ADDS I'VE HAD A LOT OF GRIEF ABOUT THIS FROM TEACHERS WHEN YOU USE THE WORD GAME' PEOPLE KIND OF CRINGE INDEED JERRY FENNER WHO TEACHES MATH AT ERIE'S ST ANDREW ELEMENTARY SCHOOL COMPLAINED TO MS ANDREWS THAT HE DIDN'T WANT TO WASTE CLASS TIME ON THE GAME I WAS POSITIVE THE KIDS WOULD LOSE INTEREST AND NOT GET MUCH OUT OF IT INSTEAD THE OPPOSITE HAPPENED MR FENNER SAYS THE GAME JUST TOOK OFF AT LEAST SIX ST ANDREW STUDENTS WANTED 24 FOR CHRISTMAS MR FENNER SAYS ADDING THAT MANY FORMERLY MATHAVERSE STUDENTS ARE PLAYING THE GAME DURING FREE TIME AND MORE PRACTICE IS OCCURRING HE ATTRIBUTES A 10 INCREASE IN CLASSROOM TEST SCORES SINCE LAST YEAR MAINLY TO 24 THE GAME IS SO POPULAR IN SOME SCHOOL DISTRICTS THAT COMPETITIONS HAVE BEEN SPAWNED THE CLEVELAND SCHOOL DISTRICT IS GEARING UP FOR A REGIONWIDE 24 TOURNAMENT THIS MONTH AS A PROMOTION FANS AT CLEVELAND CAVALIERS BASKETBALL GAMES WERE RECENTLY QUIZZED ON 24 PROBLEMS DISPLAYED ON THE SCOREBOARD MILDRED BROWN A 14YEAROLD EIGHTHGRADER FROM WASHINGTON DC RECENTLY WON A SIMILAR 24 TOURNAMENT MILDRED WAS A C STUDENT IN MATH BEFORE SHE BEGAN PLAYING THE GAME I LIKE PLAYING SPORTS SAYS MILDRED I WOULD LISTEN IN MATH BUT I'D GET BORED AND START TALKING AFTER HER MATH TEACHER PITTED HER AGAINST OTHER STUDENTS IN 24 CHALLENGES MY CLASSMATES GOT GOOD SO I PRACTICED AT HOME SAYS MILDRED AFTER PRACTICE THAT INCLUDED THREE HOURS EVERY WEEKEND MILDRED BEAT 200 OTHER PLAYERS FROM SIX COUNTIES LAST MONTH SHE ALSO RECEIVED AN A IN MATH IN THE LATEST REPORTING PERIOD AS MORE SCHOOLS BEGIN TO USE GAMES MORE GAMES ARE BECOMING AVAILABLE GTE CORP AND THE NATIONAL FOOTBALL LEAGUE JUST COMPLETED TESTING IN WASHINGTON AND TEXAS SCHOOLS A NEW GAME CALLED PROJECT PASS IN WHICH SEVENTHGRADERS WATCH NFL FILM FOOTAGE TO LEARN PROBABILITY GEOMETRIC SHAPES AND MEASUREMENT VINCENT FITZGERALD A RECENT COLLEGE GRADUATE INVENTED ZORBOW A CARD GAME WITH AN OUTERSPACE THEME THREE YEARS AGO WHEN A STUDENT HE WAS TUTORING COULDN'T CONNECT TO TRADITIONAL TEACHING METHODS AND FLUNKED SECONDGRADE TWICE MR FITZGERALD WHO OWNS ABBY EDUCATIONAL PRODUCTS CO ATLANTA SAYS HE HAS SOLD MORE THAN 10000 GAMES TO SCHOOLS NATIONWIDE WHAT'S MORE THE BOY HE WAS TUTORING HAS MOVED ON TO FOURTHGRADE EARNING B'S IN MATH SAYS MR FITZGERALD ANYTIME YOU CAN TAKE THE FEAR OUT OF LEARNING MATH YOU'VE DONE SOMETHING 9304090009 930409 TRACKING TRAVEL BY JONATHAN DAHL BUSINESS FLIERS NOW CAN SAVE MONEY AND HAVE A CLEAR CONSCIENCE TOO THOUSANDS OF BUSINESS TRAVELERS HAVE RELIED FOR YEARS ON A TRICK CALLED BACKTOBACK TICKETING TO SAVE AS MUCH AS 40 OFF REGULAR COACH FARES AIRLINES USED TO INSIST THAT THE PRACTICE VIOLATED THEIR RULES AND THEY SOMETIMES PENALIZED TRAVEL AGENTS FOR ISSUING SUCH TICKETS BUT DELTA AIR LINES LAST MONTH SAID IT NO LONGER CONSIDERED BACKTOBACK TICKETING A VIOLATION THAT PROMPTED MOST OTHER AIRLINES TO DROP THE MATTER TOO I SUPPOSE YOU COULD SAY WE HAVE A DIFFERENT ATTITUDE TOWARD IT SAYS A SPOKESMAN FOR AMR'S AMERICAN AIRLINES UNIT WE DON'T ENDORSE THE PRACTICE BUT WE REALIZED IT'S JUST UNENFORCEABLE BACKTOBACK TICKETS ARE FOR TRAVELERS USUALLY BUSINESS FLIERS WHO FLY ON WEEKDAYS AND CAN'T OTHERWISE TAKE ADVANTAGE OF DISCOUNTS THAT REQUIRE SATURDAYNIGHT STAYOVERS SOMEONE FLYING ROUND TRIP FROM NEW YORK TO LOS ANGELES WOULD BUY TWO SETS OF DISCOUNTED TICKETS ONE SET ORIGINATING IN NEW YORK THE OTHER IN LOS ANGELES THE TRAVELER WOULD THEN USE THE FIRST HALF OF EACH PAIR THE TWO SETS OF TICKETS CAN BE HUNDREDS OF DOLLARS CHEAPER THAN ONE FULL COACH FARE IN THE ABOVE EXAMPLE THE TRAVELER SAVES 300 IT DRIVES THE AIRLINES NUTS SAYS TOM PARSONS EDITOR OF BEST FARES AN ARLINGTON TEXAS MAGAZINE THE AIRLINES' SURRENDER RESULTED PARTLY FROM A FUROR AMONG TRAVEL AGENTS SOME CARRIERS HAD STARTED USING COMPUTERS TO DETECT BACKTOBACK TICKETS AND THEN BILLED TRAVEL AGENTS WHO ISSUED THEM FOR THE DIFFERENCE IN COST IT JUST WASN'T FAIR SAYS RICHARD BERNS PRESIDENT OF EQUITY TRAVEL IN SOMERS NY WHY SHOULD THE TRAVEL AGENT OR ANYONE ELSE BE THE POLICEMAN FOR THE AIRLINES THE CHANGE ISN'T YET UNIVERSAL AT LEAST ONE CARRIER USAIR GROUP SAYS IT WILL STILL CHARGE AGENTS FOR BACKTOBACK TICKETS BUT TRAVEL AGENTS EXPECT ALL AIRLINES WILL HAVE TO FOLLOW DELTA'S LEAD OR RISK LOSING AGENT LOYALTY MOST AIRLINES ARE FIGHTING ANOTHER SIDE OF BACKTOBACK TICKETING DELTA AND OTHERS HAVE STARTED REQUIRING TRAVELERS USING TICKETS WITH SATURDAYNIGHT STAYS TO RETURN HOME WITHIN 30 DAYS THAT WILL STOP SOME FLIERS FROM MAKING A LATER ROUND TRIP WITH THE SECOND HALVES OF THEIR BACKTOBACK TICKETS PARENTS MAY BE IN FOR A SURPRISE THIS SUMMER IF THEY HAVE THEIR KIDS FLY ALONE SINCE LAST SUMMER SEVERAL AIRLINES HAVE BEGUN CHARGING 25 TO 30 FOR ESCORTING UNACCOMPANIED CHILDREN MAKING DOMESTIC CONNECTIONS IT IS A COST OF BUSINESS SAYS A SPOKESMAN FOR DELTA AIR LINES WHICH ADOPTED THE FEE LAST FALL THE FEE CONTRASTS WITH HEAVY AIRLINE EFFORTS TO COURT CHILDREN MOST AIRLINES NOW HAVE SPECIAL MEALS AND WAITING LOUNGES FOR KIDS SOME SHOW CARTOONS ALONG WITH MOVIES THE CHARGE IS SUPPOSED TO COVER THE COST OF HAVING A GATE AGENT PICK UP THE CHILD BETWEEN FLIGHTS AND MAKE SURE THE CHILD GETS ON THE RIGHT CONNECTION EVEN WITH THE FEE HOWEVER THE SERVICE ISN'T PERFECT KEN COFFEY A MANAGER FOR A MEDICALELECTRONICS COMPANY IN TULSA OKLA RECENTLY PAID CONTINENTAL AIRLINES 30 TO ESCORT HIS NINEYEAROLD DAUGHTER MEGAN DURING A CONNECTION IN DENVER BUT HER FLIGHT WAS DELAYED FOR FIVE HOURS IN DENVER AND CONTINENTAL'S GATE AGENT LEFT MEGAN WITH A FAMILY FOR LUNCH THE AGENT KNEW THE FAMILY BUT MEGAN DIDN'T SHE TOLD ME SHE WAS TAKEN TO LUNCH WITH A BUNCH OF STRANGERS MR COFFEY SAYS A CONTINENTAL SPOKESMAN SAYS THE FAMILY HAD A CHILD MEGAN'S AGE AND WE THOUGHT SHE'D HAVE MORE FUN PLAYING WITH SOMEONE HER AGE BUT MR COFFEY SAYS I WAS PAYING FOR THE AIRLINE TO TAKE CARE OF HER NOT SOME FAMILY I DIDN'T KNOW DESPERATE TIMES ARE CALLING FOR DESPERATE MEASURES IN THE HOTEL INDUSTRY HOTEL PROPERTIES BY THE HUNDREDS ARE OFFERING DISCOUNTS THAT LARGE COMPANIES CAN GET THROUGH THEIR TRAVEL AGENTS BUT THERE'S ONE UNUSUAL CONDITION THE CLIENT'S AGENT MUST BOOK DIRECTLY WITH THE PROPERTY NOT THROUGH ANY 800 NUMBER OR COMPUTER RESERVATION SYSTEM THAT WAY THE PROPERTIES GET OUT OF THE FEES THAT FRANCHISERS CHARGE FOR 800 LINES OR THAT AIRLINES CHARGE FOR BOOKING ON THEIR COMPUTER RESERVATION SYSTEMS THE FEES ARE USUALLY JUST 1 TO 3 PER RESERVATION BUT IN AN INDUSTRY THAT HAS HAD HUGE LOSSES OVER THE PAST FEW YEARS FRANCHISEES ARE DESPERATE FOR SAVINGS IT'S NOT A NEW PRACTICE BUT YOU SEE IT HAPPEN ALL THE TIME NOW SAYS TOM NULTY PRESIDENT OF ASSOCIATED TRAVEL MANAGEMENT IN SANTA ANA CALIF IN A RECENT MONTH 30 OF HIS AGENCY'S ROOM BOOKINGS WERE MADE DIRECTLY WITH HOTEL PROPERTIES ALL AT THE REQUEST OF THE PROPERTIES THEY MAY HAVE A BIG CHAIN'S NAME ON THE FRONT DOOR BUT MOST OF THESE HOTELS ARE INDEPENDENTLY OWNED MR NULTY SAYS THEY'RE LOOKING FOR ANY WAY THEY CAN TO IMPROVE PROFIT THE PRACTICE IF ADOPTED MORE WIDELY COULD HURT FRANCHISERS WHO RELY ON THE FEES BUT SO FAR MANY FRANCHISERS SAY THEY AREN'T AWARE OF THE TACTIC ROBERT HAZARD CHAIRMAN OF CHOICE PROPERTIES THE FRANCHISER FOR COMFORT INN QUALITY INN AND SEVERAL OTHER LARGE CHAINS SAYS HE HASN'T HEARD ABOUT HIS FRANCHISEES DOING THIS IF THEY DID WE'D HAVE A RULE AGAINST IT HE SAYS AIRLINES OFTEN CITE HUGE LOSSES AS A REASON TO RAISE FARES OR EVEN RECEIVE GOVERNMENT AID BUT 23 BILLION OF THE 47 BILLION IN 1992 INDUSTRY LOSSES WAS FOR SPECIAL CHARGES TAKEN TO COVER NEW ACCOUNTING RULES THE RULES COVER ACCOUNTING FOR FUTURE RETIREMENT MEDICAL AND INSURANCE BENEFITS THE CARRENTAL INDUSTRY SAYS ITS PRICES WHICH ARE ABOUT THE SAME AS A DECADE AGO IN INFLATIONADJUSTED TERMS SHOULD BE HIGHER BUT TRAVELERS APPARENTLY DISAGREE IN A SURVEY OF 20000 READERS OF FREQUENT FLYER MAGAZINE NEW YORK 30 SAID CAR RENTALS COST MORE THAN THEY SHOULD ONLY 1 SAID RENTALS ARE CHEAPER THAN THEY SHOULD BE 9304090008 930409 TECHNOLOGY & HEALTH FUNGUS HOLDS HOPE OF REPLACING YEWS AS SOURCE OF TAXOL A WALL STREET JOURNAL NEWS ROUNDUP RESEARCHERS HAVE FOUND A FUNGUS THAT PRODUCES SMALL AMOUNTS OF PACLITAXEL AN ANTICANCER DRUG THAT IS EXTRACTED FROM THE RARE PACIFIC YEW TREE AND SOLD UNDER THE NAME TAXOL IF THE FUNGUS CAN BE MODIFIED TO PRODUCE MORE OF THE DRUG IT MIGHT SOMEDAY ALLOW TAXOL TO BE PRODUCED INEXPENSIVELY IN MASS QUANTITIES LIKE PENICILLIN THE RESEARCHERS SAID MANUFACTURING TAXOL FROM THE PACIFIC YEW TREE IS EXTREMELY DIFFICULT AND COSTLY ACCORDING TO NEW YORKBASED BRISTOLMYERS SQUIBB CO WHICH MAKES AND MARKETS THE DRUG MOREOVER TAXOL PRODUCTION HAS UPSET ENVIRONMENTALISTS BECAUSE THE RARE TREES ARE KILLED TO EXTRACT THE DRUG THE FUNGUS IS NAMED TAXOMYCES ANDREANAE AFTER ITS DISCOVERER ANDREA STIERLE A RESEARCH PROFESSOR AT MONTANA STATE UNIVERSITY IT WAS FOUND ON JUST ONE YEW TREE IN A PROTECTED FOREST AREA IN NORTHERN MONTANA THAT SHOWS THE IMPORTANCE OF PROTECTING NATURAL HABITATS BECAUSE THEY MAY HARBOR THINGS THAT ARE EXTREMELY IMPORTANT TO THE HEALTH AND WELLBEING OF PEOPLE SAID GARY STROBEL PROFESSOR OF PLANT PATHOLOGY AT MONTANA STATE AND ONE OF THE RESEARCHERS THE FUNGUS DESCRIBED IN A REPORT IN SCIENCE TODAY MAY HAVE DEVELOPED PACLITAXELMAKING CAPABILITIES BY ABSORBING THE GENETIC INFORMATION OF THE YEW TREE DR STROBEL THEORIZED IF TRUE OTHER FUNGI POSSIBLY EXIST THAT CAN PRODUCE OTHER MEDICINES DERIVED FROM PLANTS HE SAID THE FUNGUS IN ITS ORIGINAL FORM PRODUCES ONLY TRACE AMOUNTS OF PACLITAXEL BUT RESEARCHERS ARE WORKING ON WAYS TO BOOST PRODUCTION DR STROBEL SAID THE RESEARCHERS HAVE HAD DISCUSSIONS WITH BRISTOLMYERS AND OTHER COMPANIES TO LICENSE THE FUNGUS 9304090007 930409 BBL EXCLUDES ING FROM INSURANCE SALES THROUGH ITS BRANCHES BRUSSELS DUTCH FINANCIAL GROUP INTERNATIONALE NERDERLANDEN GROEP SAID IT REGRETS THE REMARKABLE DECISION BY BELGIUM'S BANQUE BRUXELLES LAMBERT TO EXCLUDE IT FROM SELLING INSURANCE POLICIES THROUGH THE BANK'S BRANCH NETWORK THE BBL MOVE IS SEEN AS A MAJOR SNUB TO ING THE DUTCH GROUP ING HAS A STAKE OF ABOUT 10 IN BBL ANALYSTS SAID THE DECISION TO EXCLUDE ING FROM BBL'S INSURANCE OPERATIONS APPEARED TO BE PART OF A SETTLING OF ACCOUNTS AFTER THE DUTCH CONCERN WITHDREW A PROPOSED TAKEOVER BID OF 3600 BELGIAN FRANCS 10828 A SHARE FOR BBL AT THE END OF NOVEMBER ING SAID IT WITHDREW ITS BID AFTER CLOSELY EXAMINING BBL'S BOOKS AND FINDING ITS PRICE TOO HIGH BBL'S OTHER SHAREHOLDERS WERE NEVER LIKELY TO BE THAT KIND TO ING AFTER THE BID SAID ONE ANALYST BBL'S BOARD SAID WEDNESDAY IT HAD DECIDED TO GIVE PRIORITY TO ITS OWN INSURANCE UNITS BBL LIFE AND BBL INSURANCE AND TO INSURERS ROYALE BELGE AND WINTERTHUR WHEN SELECTING POLICES TO SELL ROYALE BELGE AND WINTERTHUR ARE ALSO IMPORTANT BBL SHAREHOLDERS IN SPITE OF THE PERCEIVED SNUB ING SAID IT WOULD RETAIN ITS STAKE IN BBL BELGIUM'S SECOND BIGGEST COMMERCIAL BANK WE HAVE NO REASON TO CHANGE OUR POLICY A SPOKESMAN SAID AN ING SPOKESMAN SAID THAT LIMITING BBL'S INSURANCE MARKETING TO POLICIES ISSUED BY ITSELF ROYALE BELGE AND WINTERTHUR IS NOT IN THE BANK'S LONGTERM INTEREST WE STILL WANT TO HAVE PART OF THE INSURANCE MARKET HE SAID TALKS ARE CONTINUING GROUPE BRUXELLES LAMBERT IS THE SINGLE LARGEST SHAREHOLDER IN BBL WITH A STAKE OF ABOUT 115 ROYALE BELGE HAS AROUND 93 AND WINTERTHUR AROUND 5 9304090006 930409 LETTERS TO THE EDITOR CLINTON'S WHIZ KIDS MAYBE NOT SO SMART ROBERT L BARTLEY'S WARNINGS IN TRADE WARRIORS BABYBOOMERS TOY WITH MATCHES EDITORIAL PAGE MARCH 17 WERE RIGHT ON THE MONEY JUST AS THE WHIZ KIDS ELITE OF A PREVIOUS DEMOCRATIC ADMINISTRATION THOUGHT THEY COULD MICROMANAGE THE WAR IN VIETNAM AND BRING ABOUT VICTORY THROUGH A GRADUATED RESPONSE SO A NEW GENERATION THINKS IT CAN MANAGE THE ECONOMY AND INTERNATIONAL TRADE THE CLINTON ADMINISTRATION'S SEEMINGLY RELENTLESS BIAS TOWARD RAISING THE COSTS OF DOING BUSINESS MINIMUM WAGE HEALTH CARE TAXES ENVIRONMENT FAMILY LEAVE DOES NOT BODE WELL FOR THE ECONOMY NOR DOES THE INSTALLATION OF RON BROWN LOBBYIST SUPREME AT COMMERCE GIVE MUCH CREDENCE TO MR CLINTON'S PLEDGE TO FIGHT SPECIALINTERESTS LOBBYING MORE OMINOUSLY SOME OF HIS ECONOMIC ADVISERS SEEM TO BE PREPARING TO FIGHT THE LAST BATTLE HOLDING UP THE JAPANESE ECONOMY AND ITS DECIDEDLY NONFREE TRADE POLICIES AS A GUIDE TO FIX WHAT AILS OURS AT THE VERY TIME JAPAN IS GOING INTO THE TANK WORLDWIDE ASSET DEFLATION IS INDEED A SERIOUS CHALLENGE ONE REQUIRING BOTH BROAD VISION TO DEAL WITH ITS AS YET FATHOMABLE ECONOMIC CONSEQUENCES AND A HUMBLE RECOGNITION THAT WORLD MARKETS YIELD TO ONLY SO MUCH GOVERNMENT CONTROL UNENCUMBERED ECONOMIES RESPOND MOST QUICKLY AND EFFICIENTLY TO CHANGING MARKET CONDITIONS THAT MAKES BALANCING DOMESTIC INDUSTRIAL INTERESTS WITH FREE TRADE EVEN MORE CRUCIAL AND PROBLEMATIC UNFORTUNATELY RENEWED SQUABBLES OVER AIRBUS SUBSIDIES TINKERING WITH NAFTA THE IMPOSITION OF STEEL AND POSSIBLE MINIVAN TARIFFS ALL SUGGEST MR CLINTON'S CADRES WOULD PREFER TO MICROMANAGE THINGS EVEN AT THE RISK OF SPARKING A GLOBAL TRADE IMPLOSION 9304090005 930409 WESTINGHOUSE PLANS TO SELL SOME ASSETS TO PARTNERSHIP IT FORMED WITH BANKER BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT AGREED TO SELL MOST OF ITS COMMERCIAL REALESTATE ASSETS FOR 1 BILLION TO A PARTNERSHIP CONSISTING OF ITSELF AND ITS MAIN INVESTMENT BANKER LEHMAN BROTHERS THE DEAL MARKS THE MOST IMPORTANT SIGN SO FAR OF PROGRESS IN THE COMPANY'S EFFORTS TO SELL MORE THAN 6 BILLION IN ASSETS TO PAY DOWN THE DEBT OF ITS LOSSPLAGUED CREDIT UNIT WESTINGHOUSE SAID THE PRICE EXCEEDS THE PROPERTIES' BOOK VALUE AFTER RESERVES AND REPRESENTS 52 OF THE PROPERTIES' ORIGINAL BOOK VALUE INVESTORS PUSHED THE COMPANY'S STOCK UP 1625 TO CLOSE AT 15875 IN TRADING ON THE NEW YORK STOCK EXCHANGE THE TRANSACTION IS A VARIATION OF THE BAD BANK TECHNIQUE USED BY COMMERCIAL BANKS TO HANDLE PROBLEM LOANS WHILE IT LETS WESTINGHOUSE SHARE IN ANY GAINS IF THE PARTNERSHIP IS ABLE TO SELL THE ASSETS FOR MORE THAN EXPECTED SOME ANALYSTS SAID IT COULD LEAVE WESTINGHOUSE WITH DOWNSIDE RISK IF PROCEEDS FALL SHORT OF PROJECTIONS WESTINGHOUSE IS NOT ENTIRELY OFF THE HOOK SAID MARTIN SANKEY AN ANALYST AT FIRST BOSTON CORP HE NOTED THAT WESTINGHOUSE'S 150 MILLION EQUITY INVESTMENT IN THE PARTNERSHIP WOULD BE AT RISK AND HE SPECULATED THAT IF LEHMAN REALLY LOST ITS SHIRT ON THESE PROPERTIES WESTINGHOUSE MIGHT FEEL OBLIGED TO STEP IN AND HELP THEM OUT LEHMAN BROTHERS IS A DIVISION OF SHEARSON LEHMAN BROTHERS INC A SUBSIDIARY OF AMERICAN EXPRESS CO MOREOVER SOME OTHER POTENTIAL BUYERS COMPLAINED THEY DIDN'T HAVE A FAIR OPPORTUNITY TO BID FOR THE PROPERTIES AND THAT LEHMAN'S PARTICIPATION REPRESENTS A CONFLICT OF INTEREST ROBERT WATSON CHAIRMAN OF WESTINGHOUSE'S FINANCIAL SERVICES UNIT SAID THERE IS NO CONFLICT OF INTEREST BECAUSE WHILE LEHMAN ADVISES ON THE OVERALL DIVESTITURE EFFORT MORGAN STANLEY & CO IS ADVISING ON SALE OF THE REALESTATE PORTFOLIO MORGAN WAS IN CHARGE FROM THE BEGINNING HE SAID OTHER POTENTIAL BUYERS SPECULATED THAT WESTINGHOUSE WANTED TO KEEP NEGOTIATIONS ON BULK SALES AS QUIET AS POSSIBLE AFTER THE FAILURE IN JANUARY OF PUBLICIZED NEGOTIATIONS TO SELL THE LOAN PORTFOLIO TO GENERAL ELECTRIC CO MR WATSON SAID THE NET PROCEEDS OF THE TRANSACTION WOULDN'T BE AT RISK IN ANY WAY THAT WE CAN SEE TERMS CALL FOR WESTINGHOUSE TO POST NET PROCEEDS OF 850 MILLION AFTER PAYING 150 MILLION FOR A 49 INTEREST IN THE PARTNERSHIP CALLED LW REAL ESTATE INVESTMENTS LP LEHMAN IS TO HOLD THE OTHER 51 THE PARTNERSHIP WILL SELL THE PROPERTIES AND LOANS OVER TWO TO THREE YEARS HE SAID THIS AND OTHER RECENT ASSET SALES GO A LONG WAY TOWARD LIQUIDATING WESTINGHOUSE'S LENDING BUSINESS SOURCE OF MORE THAN 5 BILLION IN PRETAX WRITEDOWNS OVER THE PAST TWO YEARS THE LOANS HAD A BOOK VALUE AFTER RESERVES OF 41 BILLION SEPT 30 AND SINCE THEN INCLUDING YESTERDAY'S DEAL WESTINGHOUSE HAS RAISED ABOUT 23 BILLION FROM FINANCIAL ASSET SALES THE COMPANY EXPECTS ADDITIONAL ASSET SALES TOTALING AT LEAST 700 MILLION IN THIS YEAR'S SECOND QUARTER MR WATSON SAID THE COMPANY IS KEEPING ITS RESIDENTIAL PROPERTIES WITH A BOOK VALUE BEFORE RESERVES OF 375 MILLION AS WELL AS WEAKER COMMERCIAL REALESTATE ASSETS WITH SIGNIFICANT RESERVES AGAINST THEM WHICH HE SAID HAD UPSIDE POTENTIAL THE COMPANY'S DIVESTITURE PLAN ALSO CALLS FOR SELLING FOUR OPERATING BUSINESSES INCLUDING ITS DISTRIBUTION & CONTROL AND WESTINGHOUSE ELECTRIC SUPPLY BUSINESSES KNOLL GROUP A FURNITURE BUSINESS AND WESTINGHOUSE COMMUNITIES A REAL ESTATE DEVELOPER MITCHELL PACELLE IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9304090004 930409 POLITICS & POLICY CONGRESS HOBBLES CLINTON'S BID TO BOOST AID TO RUSSIA AND URGES G7 TO DO SAME BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S PLANS TO HELP RUSSIAN PRESIDENT BORIS YELTSIN HAVE BEEN COMPLICATED BY THE SENATE'S FAILURE TO APPROVE HIS ECONOMIC STIMULUS PACKAGE ADMINISTRATION OFFICIALS SAID THEY ARE STILL COMMITTED TO A NEW AID PACKAGE THAT WILL SURPASS ANYTHING OFFERED BY THE BUSH ADMINISTRATION BUT UNTIL THE SENATE APPROVES THE STIMULUS PACKAGE MR CLINTON COULD HAVE A TOUGH TIME ASKING CONGRESS FOR SIGNIFICANT NEW SPENDING ON RUSSIA ADMINISTRATION OFFICIALS WERE DEBATING HOW LARGE AND SPECIFIC AN AID PACKAGE THEY WILL BE ABLE TO OFFER RUSSIA AT NEXT WEEK'S MEETING IN TOKYO OF THE MINISTERS OF THE GROUP OF SEVEN INDUSTRIAL DEMOCRACIES IF ITS PACKAGE IS LESS THAN INSPIRING THE US COULD HAVE A DIFFICULT TIME PERSUADING ITS ALLIES TO ANTE UP SIGNIFICANT CONTRIBUTIONS OF THEIR OWN THE PROCESS IS IN A VERY CRITICAL MOMENT SAID A SENIOR ADMINISTRATION OFFICIAL WHO ADDED THAT THE PRESIDENT AND OTHER OFFICIALS WERE CONSULTING CLOSELY WITH CONGRESS TO GAUGE THE SUPPORT FOR MORE RUSSIAN AID BECAUSE MR YELTSIN'S POLITICAL SITUATION IS SO URGENT A SENIOR ADMINISTRATION OFFICIAL TOLD REPORTERS THAT IN TOKYO THE G7 MINISTERS COULD DECIDE TO MOVE UP THE DATE OF THE JULY ECONOMIC SUMMIT THE OFFICIAL ALSO SAID THAT THE INTERNATIONAL COMMUNITY WOULD CONSIDER IT A VICTORY FOR MR YELTSIN IF HE WINS 60 OF THE VOTE IN THE APRIL 25 REFERENDUM MR YELTSIN TOLD PRESIDENT CLINTON IN VANCOUVER LAST WEEKEND THAT IF HE GETS LESS THAN 50 OF THE VOTE HE WOULD HAVE TO STEP DOWN FROM THE PRESIDENCY THE ADMINISTRATION'S BUDGET RELEASED YESTERDAY INCLUDES 700 MILLION IN ECONOMIC AID FOR ALL THE FORMER SOVIET REPUBLICS AND 400 MILLION MORE FROM THE DEFENSE BUDGET TO ASSIST IN THE DISMANTLING AND STORAGE OF SOVIET NUCLEAR WEAPONS BUT THOSE FIGURES FALL SHORT OF WHAT THE ADMINISTRATION WANTS TO SPEND ON BILATERAL AID TO RUSSIA AND OFFICIALS HAVE INDICATED THAT THEY WOULD LIKE TO GO BACK TO THE CONGRESS FOR AN EMERGENCY SUPPLEMENTAL SPENDING PACKAGE THE S' WORD IS LIKE NAILS ON A BLACKBOARD RIGHT NOW SAID AN OFFICIAL PARTICIPATING IN THE DEBATE BUT HE ADDED THERE REALLY IS NO OTHER WAY TO DO WHAT WE WANT TO DO THE WHITE HOUSE HAD HOPED TO UNVEIL IN TOKYO A LARGE PACKAGE OF MAINLY PROJECTORIENTED AIDTARGETED FOR MAXIMUM POLITICAL IMPACT TOPPING THE LIST OF THE PRESIDENT'S PRIORITIES OFFICIALS SAID IS AID TO HELP BUILD HOUSING FOR FORMER SOVIET MILITARY OFFICERS FUNDS TO HELP CLEAN UP THE ENVIRONMENT AND IMPROVE ENERGY PRODUCTION CITIZENTOCITIZEN EXCHANGE PROGRAMS AND MORE HELP FOR AGRICULTURE HOPE FOR EXPANDED OPTIONS WHILE THESE PRIORITIES HAVEN'T CHANGED THE ADMINISTRATION MAY BE FORCED TO UNVEIL ITS PACKAGE IN TWO SEPARATE STAGES RATHER THAN IN A SINGLE PACKAGE THE ADMINISTRATION COULD INDICATE WHAT SPECIFIC PROJECTS THEY CONSIDER MOST PROMISING AND SUGGEST SOME PRELIMINARY FUNDING COMMITMENTS THEY WILL LIKELY STRESS TO THEIR ALLIES AND THE RUSSIANS THAT MORE EXPANDED OPTIONS WILL COME AFTER MR CLINTON SORTS OUT HIS POLITICAL PROBLEMS AT HOME OFFICIALS SAID THEY ARE STILL OPTIMISTIC THE TOKYO MEETING WILL PRODUCE A GENEROUS AND CONCRETE AID OFFER FOR RUSSIA THE INTERNATIONAL MONETARY FUND COULD OFFER RUSSIA SEVERAL BILLION DOLLARS IN NEW LENDING ON FAR MORE LENIENT TERMS THAN IN THE PAST AND THE BELEAGUERED COUNTRY WILL BE TOLD THAT A 6 BILLION RUBLE STABILIZATION FUND WILL BE AVAILABLE ONCE IT GETS CONTROL OF ITS ECONOMY US OFFICIALS SAID THEY HAVE ALSO BEEN PUTTING THE HEAT ON THEIR ALLIES TO COME UP WITH THEIR OWN BILATERAL CONTRIBUTIONS TO A G7 MULTILATERAL AID PACKAGE 9304090003 930409 THE CLINTON BUDGET CLINTON BUDGET GIVES SLIGHTLY ON DEFICIT CUT PLAN SEES 1997 REDUCTION TOTALING 1328 BILLION FOES REMAIN SKEPTICAL BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON STARED THE DEFICIT IN THE EYE AND BLINKED THE DIFFERENCES BETWEEN THE 1478PAGE DETAILED BUDGET RELEASED BY THE WHITE HOUSE YESTERDAY AND THE 145PAGE SUMMARY RELEASED IN MIDFEBRUARY ARE VERY SLIGHT BUT THEY APPEAR TO TAKE THE ADMINISTRATION A STEP BACK FROM ITS COMMITMENT TO REDUCE THE DEFICIT FLESHING OUT THE SPENDING PLAN RELEASED IN FEBRUARY WITHOUT MODIFYING IT TO REFLECT SUBSEQUENT CONGRESSIONAL ACTION MR CLINTON YESTERDAY PROPOSED 152 TRILLION IN SPENDING AND 125 TRILLION IN RECEIPTS FOR FISCAL 1994 WHICH BEGINS OCT 1 THE RESULTING DEFICIT IS PROJECTED TO BE 2641 BILLION AFTER INTENSE INTERNAL DEBATE THE ADMINISTRATION OFFERED A BUDGET OUTLINE IN FEBRUARY THAT SLICED 140 BILLION FROM THE DEFICIT PROJECTED FOR FISCAL 1997 THE FINAL YEAR OF HIS TERM TOP OFFICIALS REPEATEDLY CALLED ATTENTION TO THAT ACHIEVEMENT BUT AFTER WITHDRAWING A COUPLE OF SPENDINGCUT PROPOSALS ASKING FOR A BIT MORE SPENDING NEXT YEAR AND DISCOVERING THAT MANY OF HIS EARLIER PROPOSALS WILL SAVE LESS THAN ANTICIPATED MR CLINTON SETTLED FOR A PLAN THAT TRIMS THE 1997 DEFICIT BY ONLY 1328 BILLION THE DOCUMENTS RELEASED YESTERDAY SHOW IN THIS TOPSYTURVY BUDGET YEAR HOWEVER CONGRESS APPEARS TO BE MORE DETERMINED THAN THE PRESIDENT TO REACH THE DEFICIT GOALS THAT MR CLINTON HIMSELF SET THE BUDGET RESOLUTION PASSED BY CONGRESS EARLIER THIS MONTH SETS TOUGHER RESTRAINTS ON SPENDING THAN THE PRESIDENT SEEKS POINTING TO THE CONGRESSIONAL ACTION WHITE HOUSE BUDGET DIRECTOR LEON PANETTA DENIED THAT THE NEW BUDGET REPRESENTS ANY RETREAT ON THE DEFICITREDUCTION FRONT THE BOTTOM LINE HERE IS WITH WHAT CONGRESS HAS DONE COMBINED WITH WHAT WE'VE PRESENTED WE'RE LOOKING AT 514 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS THAT'S THE MESSAGE SOME ADMINISTRATION CRITICS DON'T SEE IT THAT WAY THE HIGHWATER MARK FOR DEFICIT REDUCTION HAS PASSED SAID STEPHEN BELL A FORMER REPUBLICAN SENATE BUDGET STAFFER NOW AT SALOMON BROTHERS INC AS CONGRESS FACES TOUGH VOTES IN THE COMING MONTHS HE PREDICTED LAWMAKERS WILL ABANDON SOME OF MR CLINTON'S PROPOSED TAX INCREASES EVEN IF THAT MEANS MISSING CONGRESSIONAL DEFICIT TARGETS AT A BRIEFING YESTERDAY MR PANETTA AND LAURA TYSON THE CHIEF WHITE HOUSE ECONOMIST REPEATEDLY EMPHASIZED MR CLINTON'S INTEREST IN THE TWO DEFICITWIDENING FACETS OF HIS ECONOMIC PLAN SPENDING ABOUT 16 BILLION TO STIMULATE THE ECONOMY NOW AND SPENDING ABOUT 140 BILLION OVER FIVE YEARS ON INVESTMENTS TO SPUR GROWTH IN THE FUTURE THE ADMINISTRATION WILL HAVE TO FIGHT FOR ITS INVESTMENTS WITHIN THE SPENDING CAPS THAT HAVE BEEN ESTABLISHED BY CONGRESS MR PANETTA SAID AT THE BRIEFING WE'RE PREPARED TO DO THAT BUT IT NEEDS TO BE POINTED OUT THAT WE'LL HAVE A DIFFICULT TIME BUT AFTER THE BRIEFING MR PANETTA CONCEDED THAT WE'RE OBVIOUSLY NOT GOING TO BE ABLE TO GET ALL OF OUR INVESTMENTS WE'RE GOING TO HAVE TO SET SOME PRIORITIES THE CLINTON INVESTMENT PACKAGE RANGES FROM HIS NATIONALSERVICE INITIATIVE TO SCIENTIFIC RESEARCH GRANTS IN SENATE AND HOUSE APPROPRIATION SUBCOMMITTEES WHERE THE PRESIDENT OF THE USHAS LITTLE SAY MR CLINTON'S FAVORED SPENDING INITIATIVES WILL COMPETE FOR MONEY WITH TRADITIONAL CONGRESSIONAL PRIORITIES INDEED MR CLINTON APPEARS TO BE WILLING TO SPEND MONEY ON THINGS THAT KEY CONGRESSMEN WANT IN ORDER TO SHORE UP SUPPORT FOR THE SPENDING THAT HE WANTS MR CLINTON BOWED TO PRESSURE FROM SENS HOWELL HEFLIN D ALA AND JAMES SASSER D TENN WHO WERE BACKED BY VICE PRESIDENT ALBERT GORE A FORMER SENATOR FROM TENNESSEE AND WITHDREW A PROPOSAL TO SAVE MONEY BY ELIMINATING TENNESSEE VALLEY AUTHORITY PROGRAMS FOR FERTILIZER RESEARCH AND RURAL DEVELOPMENT EVEN THOUGH MR CLINTON'S PREVIOUS SPENDING PROPOSALS FOR FISCAL 1994 WHICH BEGINS OCT 1 ALREADY EXCEED SPENDING CAPS SET BY LAW IN 1990 THE PRESIDENT IS ASKING FOR ABOUT 18 BILLION MORE SPENDING THAN HE PROPOSED IN FEBRUARY THE TOTAL INCLUDES 553 MILLION FOR VETERANS' MEDICAL CARE 127 MILLION FOR VARIOUS HOUSING PROGRAMS AND 400 MILLION IN AID TO STATES AFFECTED BY A HEAVY INFLUX OF MIGRANTS MR PANETTA SAID THE INCREASES WERE TRIVIAL IN A 15 TRILLION BUDGET IN ALL MR CLINTON'S SPENDING WISH LIST EXCEEDS THE SPENDING CAPS BY ABOUT 5 BILLION IN 1994 AND ABOUT 13 BILLION IN 1995 THE BUDGET DIRECTOR SAID THE ADMINISTRATION WILL WORK WITH CONGRESS TO IDENTIFY CUTS SO THAT CONGRESS CAN MEET THE SPENDING CAPS HE WOULDN'T BE SPECIFIC EXCEPT TO SAY THAT THE SAVINGS PROBABLY WON'T COME FROM THE DEFENSE BUDGET THE BUDGET VOLUME DOESN'T REFLECT ALL THE CONCESSIONS THAT MR CLINTON HAS MADE THE WHITE HOUSE HAS SAID THAT IT WON'T PRESS AT LEAST AS PART OF THE DEFICITREDUCTION LEGISLATION A CONTROVERSIAL PROPOSAL TO CHARGE RANCHERS AND MINERS MORE FOR USING FEDERAL LANDS BUT REVENUE FROM THOSE PROPOSALS STILL IS INCLUDED IN THE CLINTON TALLY THE AGRICULTURE AND INTERIOR DEPARTMENTS NOW SAY THEY WILL TRY TO RAISE GRAZING FEES ADMINISTRATIVELY SPARING CONGRESS A PAINFUL VOTE AND THE ADMINISTRATION SAYS IT WILL PRESS FOR INCREASED MINING ROYALTIES IN SEPARATE LEGISLATION WE FULLY INTEND TO TRY TO ACHIEVE THOSE SAVINGS MR PANETTA VOWED THE WHITE HOUSE CONCESSION TO WESTERN SENATORS HOWEVER IS SEEN BY SOME AS THE FIRST OF A SERIES HAVING EXTRACTED THEIR EXTORTION FROM THE PRESIDENT OTHERS WILL BE EMBOLDENED TO DO SO SAID BILL FRENZEL A FORMER REPUBLICAN CONGRESSMAN FROM MINNESOTA NOW AT THE BROOKINGS INSTITUTION WE'RE GOING TO SEE MORE UNRAVELING AS THE YEAR PROCEEDS HE SAID BUT REP BARNEY FRANK D MASS A MEMBER OF THE HOUSE BUDGET COMMITTEE DISPUTED THAT VIEW HE VIEWS THE CONCESSIONS ON GRAZING AND MINING FEES AS A ONESHOT DEAL AND SEES THE MAKINGS OF A BIPARTISAN COALITION TO CUT SPENDING ON SUCH BIGTICKET PROJECTS AS THE SPACE STATION AND THE SUPERCONDUCTING SUPERCOLLIDER THE RESEARCH FACILITY IN TEXAS OVER THE FIVE YEARS FROM FISCAL 1994 TO 1998 MR CLINTON'S BUDGET WOULD REDUCE THE DEFICIT BY 447 BILLION FROM WHAT IT WOULD OTHERWISE BE THE BUDGET OFFICE ESTIMATES THAT'S DOWN FROM THE 473 BILLION ESTIMATE MADE IN FEBRUARY THE ADMINISTRATION NOW ESTIMATES THAT ITS PROPOSALS TO INCREASE TAXES ON UPPERINCOME SOCIAL SECURITY BENEFICIARIES AND TO CUT FEDERAL SPENDING ON MEDICARE WILL YIELD 17 BILLION LESS OVER THE FIVEYEAR PERIOD THAN IT SAID INITIALLY THE DETAILED CLINTON BUDGET PROJECTS A DEFICIT FOR FISCAL 1994 OF 2641 BILLION IF HIS PLAN IS ADOPTED IN ITS ENTIRETY THE ADMINISTRATION DEFICIT REDUCTION PROJECTIONS DON'T REFLECT THE LATEST CONGRESSIONAL ACTION WHICH ACCEPTS MOST BUT NOT ALL OF THE CLINTON PROPOSALS THE CONGRESSIONAL BUDGET RESOLUTION PROJECTS THE DEFICIT WILL BE 2624 BILLION IN 1994 THE DEFICIT FOR THE CURRENT FISCAL YEAR IS ESTIMATED BY THE WHITE HOUSE TO BE 322 BILLION BOTH THE ADMINISTRATION AND CONGRESSIONAL PROJECTIONS ASSUME THE ENTIRE CLINTON ECONOMIC STIMULUS PACKAGE IS ENACTED WITHOUT ANY STIMULUS CONGRESSIONAL SCOREKEEPERS SAY THE 1994 DEFICIT WOULD BE 2538 BILLION BOTH RELY ON CONGRESSIONAL BUDGET OFFICE ECONOMIC ASSUMPTIONS MS TYSON THE WHITE HOUSE ECONOMIST NOTED THAT THE DEFICIT WILL BE SIGNIFICANTLY LOWER IF THE ECONOMY PERFORMS AS ADMINISTRATION ECONOMISTS EXPECT UNDER THAT SCENARIO THE DEFICIT COULD FALL TO 181 BILLION BY 1997 IF THERE ARE SURPRISES OUT THERE THEY ARE GOING TO BE POSITIVE SURPRISES ASSUMING THAT OUR PROGRAM IS ENACTED SHE SAID JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9304090002 930409 PUTTER MAKERS SCORE WITH CUSTOM DESIGNS AND HIGHTECH PARTS TAD MOORE'S YEARS OF PUTTERING GIVE HIM A DREAMY CAREER IN GOLF WITH LOTS OF GREEN BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL AUGUSTA GA GOLF LOVERS MEANING MOST EVERYONE WHO PLAYS WOULD JUMP AT THE CHANCE TO TRADE PLACES WITH TAD MOORE THIS WEEKEND MR MOORE AGE 52 MAKES PUTTERS AND FOR HIM ATTENDING GOLF'S PREMIER EVENTS SUCH AS THE MASTERS AND STANDING AROUND THE AUGUSTA NATIONAL GOLF CLUB'S PRO SHOP IS SIMPLY PART OF THE JOB I ALWAYS WANTED FOR GOLF TO BE MY BUSINESS SAYS MR MOORE AN ENGINEER BY TRAINING WHO MADE PUTTERS AS A HOBBY OF SORTS FOR NEARLY THREE DECADES BEFORE BECOMING MAXFLI'S MASTER PUTTER DESIGNER IN LATE 1989 IT WAS LIKE A DREAM COME TRUE YET EVEN DREAMS HAVE THEIR DOWNSIDES LAST YEAR I DID 28 TOURNAMENTS WORLDWIDE AND WAS GONE FROM HOME ABOUT 100 DAYS SAYS MR MOORE AN AFFABLE QUIETSPOKEN MAN WHO LIVES IN LAGRANGE GA WHERE HE RECENTLY MOVED HIS PUTTER BUSINESS TO HIS BASEMENT FROM HIS GARAGE I ENJOY IT BUT I GET BURNED OUT JUST LIKE ANYBODY ELSE WHO TRAVELS A LOT AS MR MOORE'S SCHEDULE SUGGESTS PUTTERS ARE BIG BUSINESS ONCE THE CHEAPEST OF GOLF CLUBS THE PUTTER NOW IS OFTEN A PREMIUM ONE PRODUCED IN A DIZZYING RANGE OF MODELS AND STYLES UNMATCHED BY ANY OTHER CLUB NEARLY 100 COMPANIES LIKE MAXFLI NOW MASSPRODUCE PUTTERS IN THE US THE LEADING MAKER KARSTEN MANUFACTURING CORP WHICH ALSO MANUFACTURES THE POPULAR PING IRONS HAS OVER 80 PUTTER MODELS AND SELLS THEM IN MORE THAN 60 COUNTRIES PUTTER DESIGNS AND COMPONENTS RUN FROM SPACEAGE SLEEK TO THOROUGHLY OLDFASHIONED ONE OF THE MOST POPULAR PUTTERS THE TITLEIST BULLS EYE HAS BEEN AROUND LONGER THAN MOST BABY BOOMERS A MASSPRODUCED PUTTER TYPICALLY COSTS FROM AROUND 50 TO 200 TP MILLS A VETERAN TUSCALOOSA ALA PUTTER DESIGNER SAYS PRICES FOR HIS CUSTOMMADE PUTTERS GO FROM 600 ON UP AND WE'VE HAD THEM RESELL AS HIGH AS 13000 MR MILLS WHO ALSO DESIGNS FOR SPALDING SPORTS WORLDWIDE DOES HIS CUSTOM WORK BY APPOINTMENT ONLY REQUIRES PAYMENT IN ADVANCE LIMITS ORDERS TO FOUR PUTTERS PER PERSON A YEAR AND HAS A BACKLOG OF NEARLY A YEAR'S WORK MR MILLS SAYS HE HAS MADE PUTTERS FOR EVERY REPUBLICAN PRESIDENT SINCE EISENHOWER AND EVEN THEY HAD TO WAIT IN LINE LIKE OTHER CUSTOMERS AN AVERAGE OF 11 MONTHS TO ME EVERYBODY IS A CELEBRITY AND NOBODY IS A CELEBRITY HE DECLARES THE PROLIFERATION OF PUTTERS REFLECTS ADVANCES IN EQUIPMENT DESIGN PLUS THE FACT THAT GOLF MATCHES THESE DAYS ARE USUALLY WON ON THE GREENS PUTTING ACCOUNTS FOR NEARLY HALF THE STROKES A GOLFER WILL HIT IN A TYPICAL ROUND DRIVE FOR SHOW AND PUTT FOR DOUGH ONE ADAGE HAS IT ALMOST EVERYONE SAYS PUTTING IS MORE MENTAL THAN PHYSICAL EVEN MOST OF THOSE AFFLICTED WITH THE YIPS WHERE PUTTING SKILL SIMPLY EVAPORATES WOULD AGREE ANY GOOD PUTTER CAN PUTT WITH ANYTHING SAYS ROB BRAND HEAD PRO AT MIAMI'S DORAL RESORT AND COUNTRY CLUB WHO ADDS THAT A PRO HE ONCE WORKED FOR SOMETIMES PUTTED WITH A BOX THAT CLUBS WERE SHIPPED IN IN HIS EARLY YEARS LEE TREVINO WON BETS BY PUTTING WITH A TAPEWRAPPED COKE BOTTLE NONETHELESS GOLFERS OFTEN CHERISH THEIR PUTTERS BEN CRENSHAW ONE OF THE BEST PUTTERS ON THE PRO TOUR HAS USED THE SAME PUTTER A WILSON MODEL THAT HE CALLS LITTLE BEN SINCE HE WAS A TEENAGER WHEN IT WAS STOLEN TWICE MOST RECENTLY LAST SUMMER ITS RECOVERY WAS MAJOR NEWS TO SPEAK OF PUTTERS IS TO SPEAK OF FAITH AND TRUST AND DARE WE SAY IT LOVE WRITES MIKE STACHURA IN THE CURRENT GOLF DIGEST HE ADDS A GOOD PUTTER IS LIKE A GOOD SPOUSE ONLY HARDER TO FIND THE QUEST FOR THE PERFECT PUTTER CONTINUES TO THE FRONTIERS OF THE SPACE AGE GOLF TECHNOLOGY BOASTS THAT ITS PUTTERS COMPUTERDESIGNED AND MADE BY COMPUTERCONTROLLED MACHINES ARE UNTOUCHED BY HUMAN HANDS BUT TRADITIONALISTS SAY HUMAN HANDS WILL ALWAYS BE NEEDED TO CREATE A PUTTER NO MATTER WHAT THE COMPUTER TELLS YOU YOU STILL HAVE TO MAKE IT AND TRY IT MR MOORE SAYS THERE'S SOMETHING ABOUT HAVING THE ACTUAL PIECE IN FRONT OF YOU HE SPEAKS FROM A LIFETIME'S EXPERIENCE MR MOORE GREW UP IN A TOLEDO OHIO GOLFING FAMILY AND HE SAYS I LEARNED TO PLAY AS SOON AS I COULD WALK AFTER ATTENDING THE UNIVERSITY OF TOLEDO ON A GOLF SCHOLARSHIP HE WENT TO WORK IN THE FAMILY BUSINESS WHICH DID CASTINGS AND FORGINGS IN HIS SPARE TIME HE STARTED CASTING A PUTTER IN BRASS I ALWAYS FELT I COULD MAKE ONE BETTER THAN I COULD BUY HE SAYS I DIDN'T SUCCEED FOR A LONG TIME WHAT LOOKS EASY IS NOT SOON HE WAS MAKING PUTTERS FOR FRIENDS INCLUDING THE GOLF PRO AT HIS COUNTRY CLUB WORD GRADUALLY SPREAD BY THE LATE 1970S OR SO A FEW PROS ON TOUR WERE USING HIS PUTTERS AND HE WAS USING THE PROS FOR RESEARCH AND DEVELOPMENT YOU START GETTING INPUT FROM GUYS ON THE TOUR AND YOU END UP MAKING A BETTER PUTTER HE SAYS ABOUT THAT TIME HE MOVED TO LAGRANGE WHERE HE EVENTUALLY STARTED HIS OWN COMPANY SELLING TRUCK AIRCONDITIONING PARTS HIS WORK DOVETAILED NICELY WITH MAKING PUTTERS WHICH HE SAYS WAS STILL MORE LIKE A HOBBY I WAS ALWAYS INVOLVED WITH STEEL IN MY BUSINESS HE SAYS SO I WOULD CONTACT A SUPPLIER AND TELL THEM WHAT I WAS TRYING TO DO WITH MY PUTTERS AND HAVE THEM GIVE ME SUGGESTIONS FOR THE BEST MATERIALS HE SAYS THAT IS HOW HE SETTLED ON THE STEEL ALLOY THAT HE STILL USES IN MOST CLUBS HE GOT A BIG BREAK ONE WEEKEND IN 1989 WHEN FRANK FUZZY ZOELLER WHO WAS HAVING PUTTING PROBLEMS BLINDLY PULLED A TAD MOORE PUTTER OUT OF HIS BAG AND SO IMPROVED HIS GAME THAT HE FINISHED SECOND IN THE TOURNAMENT THE MYSTERY PUTTER MADE NEWS EVERYONE WANTED TO KNOW WHO TAD MOORE WAS MR ZOELLER RECALLS I SAID I DIDN'T EVEN KNOW THE GENTLEMAN I DON'T KNOW HOW I GOT THE PUTTER IT WAS JUST ONE OF THOSE CRAZY THINGS THAT SAME YEAR MR MOORE STARTED TALKING WITH MAXFLI A DIVISION OF DUNLOP SLAZENGER WHICH IS A UNIT OF ENGLAND'S BTR PLC MAXFLI WAS WELL KNOWN FOR ITS GOLF BALLS BUT IT DIDN'T MAKE CLUBS IT WAS LOOKING FOR SOMEONE TO HELP DEVELOP A LINE OF PUTTERS AND RAISE ITS PROFILE MR MOORE SOON SIGNED AN AGREEMENT IN WHICH AMONG OTHER THINGS MAXFLI GOT EXCLUSIVE USE OF THE TAD MOORE NAME AND TRADEMARK THOUGH MR MOORE CONTINUES TO MAKE CUSTOM PUTTERS LAST YEAR GOLF PRO MERCHANDISER A GOLF TRADE PUBLICATION RANKED MAXFLI THE THIRD FASTESTGROWING PUTTER ON THE MARKET CUSTOM PUTTERS ARE DONE IN MR MOORE'S SHOP WHICH IS EQUIPPED WITH A MILLING MACHINE GRINDERS AND A CLUBBENDING MACHINE A CUSTOMMADE CLUB INVOLVES SOME 20 TO 30 HOURS OF WORK AND IT CAN TAKE FROM A FEW MONTHS TO A YEAR TO DELIVER PART OF MR MOORE'S JOB WITH MAXFLI INVOLVES HELPING PROS AT TOURNAMENTS WITH ANY ADJUSTMENTS THEIR PUTTERS NEED HE TYPICALLY HANGS OUT IN THE PRO SHOP WHERE GOLFERS SEEK HIM OUT FOR HELP ON ONE CHILLY MORNING HERE THIS WEEK FOR INSTANCE HE WORKED WITH THREE MAXFLI PLAYERS REPLACING MR ZOELLER'S PUTTER GRIP ADJUSTING JEFF SLUMAN'S ENTIRE SET OF IRONS AND PUTTING A NEW GRIP ON JAY HAAS'S DRIVER MR MOORE ALSO ADJUSTED THE PING IRONS OF ZIMBABWE'S TONY JOHNSTONE WHO HE SAYS WAS HAVING TROUBLE DOING IT AND I OFFERED TO DO IT FOR HIM FOR HIS OWN PART MR MOORE WHO PLAYS TO A HANDICAP OF AROUND A ONE HAS FORSAKEN CUSTOMIZED PUTTERS AND THESE DAYS USES A STANDARD MAXFLI BRAND EVERYBODY ALWAYS THINKS MY PUTTER HAS TO BE BETTER THAN ANY OTHER PUTTER HE SAYS SO WHEN I GO AND PLAY SOMEWHERE SOMEBODY ALWAYS TRIES TO BUY IT I FINALLY SAID THE HECK WITH IT I'M GOING TO PUTT WITH AN ORDINARY PUTTER HE ADDS THAT IS ONE OF THE BAD PARTS OF MY JOB 9304090001 930409 OBJECTIONS IN AIRLINE PRICEFIXING LAWSUIT SETTLEMENT REJECTED WASHINGTON THE JUSTICE DEPARTMENT REJECTED PROTESTS FROM THE AIRLINE AND TRAVEL INDUSTRY TO A GOVERNMENT LAWSUIT CHARGING EIGHT CARRIERS WITH ILLEGALLY AGREEING TO FIX PRICES THE DEPARTMENT FILED A STATEMENT WITH THE FEDERAL COURT HERE THAT COULD LEAD TO THE APPROVAL OF A PROPOSED SETTLEMENT OF THE ANTITRUST CHARGES BY TWO OF THE AIRLINES UAL CORP'S UNITED AIRLINES AND USAIR GROUP INC'S USAIR UNIT THE JUSTICE DEPARTMENT BY LAW MUST ALLOW THE PUBLIC INCLUDING DEFENDANTS TO COMMENT ON THIS TYPE OF SETTLEMENT THE DEPARTMENT'S STATEMENT WAS A RESPONSE TO THOSE COMMENTS THE CARRIERS THAT HAVE REFUSED TO SETTLE ARE ALASKA AIR GROUP INC'S ALASKA AIRLINES AMR CORP'S AMERICAN AIRLINES CONTINENTAL AIRLINES HOLDINGS INC'S CONTINENTAL AIRLINES DELTA AIR LINES WINGS HOLDINGS INC'S NORTHWEST AIRLINES AND TRANS WORLD AIRLINES THEY HAVE SEVEN DAYS TO RESPOND TO THE JUSTICE DEPARTMENT'S STATEMENT AFTER WHICH THE JUDGE SUPERVISING THE CASE COULD EITHER HOLD A HEARING OR APPROVE THE SETTLEMENT ACCORDING TO LAWYERS IN THE CASE AIRLINE TARIFF PUBLISHING CO OF CHANTILLY VA IS ALSO NAMED AS A DEFENDANT THE FIRM WHICH IS OWNED BY THE AIRLINES IS A COMPUTERIZED DATABASE THROUGH WHICH THE CARRIERS SHARE DAILY PRICE CHANGES THE JUSTICE DEPARTMENT CHARGED THAT THE AIRLINES HAVE USED THE SYSTEM TO SIGNAL EACH OTHER AND IN EFFECT NEGOTIATE PRICES THE PROPOSED SETTLEMENT WITH UNITED AND USAIR WOULD PROHIBIT THEM FROM FIXING PRICES AND FROM COMMUNICATING VIA THE COMPUTER SYSTEM TO SET THE FIRST AND LAST DATES OF FARE DISCOUNTS WHICH IS ONE WAY THE AIRLINES ALLEGEDLY COLLUDE ON PRICING 9304090191 930311 LETTERS TO THE EDITOR MARIJUANA PATENT RICK DOBLEN AND MARK AR KLEIMAN IN THEIR FEB 19 LETTER TO THE EDITOR ARE NOT CORRECT WHEN THEY STATE THERE ARE NO PATENT RIGHTS TO BE HAD ON MARIJUANA I HOLD A PATENT FOR THE USE OF DELTA9THC FOR THE TREATMENT OF GLAUCOMA MY COPATENTEES AND I DEVISED A METHOD OF USING THC IN SUBPSYCHOTROPIC DOSES ORALLY TO AVOID CEREBRAL SIDE EFFECTS HIGHS METHOD OR USE PATENTS ARE ROUTINELY GRANTED BY THE US PATENT OFFICE AND INDEED HAVE BEEN GRANTED WHEN A TRULY NEW OR NONOBVIOUS USE IS DISCOVERED SEE RELATED LETTER LETTERS TO THE EDITOR NO MORE DR FEELGOOD WSJ APRIL 8 1993 9303110079 9304090174 930304 THE DANGERS OF RADIO SILENCE BY WALTER LAQUEUR LAST WEEK IN MOSCOW A COLLECTION OF ESSAYS WAS PUBLISHED DEVOTED TO VILIFYING RADIO LIBERTY THE MUNICHBASED BROADCASTING SERVICE THAT BEAMS INTO THE FORMER SOVIET UNION ONE ESSAYIST CALLED RADIO LIBERTY A TOOL OF SATAN SCHEDULED TO DESTROY THE WORLD IN THE OLDEN DAYS THESE CAMPAIGNS WERE LAUNCHED BY THE COMMUNIST PARTY OF THE SOVIET UNION NOW THEY ARE SPONSORED BY THE EXTREME NATIONALIST ANTIDEMOCRATIC FORCES IN THE RUSSIAN CAPITAL MEANWHILE THE MOSCOW GROUP THAT FUNCTIONS AS THE PROPAGANDA CENTER OF THIS POLITICAL CAMP HAS CALLED FOR THE RENEWED JAMMING OF RADIO LIBERTY AND ITS SISTER STATION RADIO FREE EUROPE TX THESE DEMANDS ARE PERFECTLY LOGICAL RADIO LIBERTY AND RADIO FREE EUROPE PLAYED AN ENORMOUS ROLE IN THE OUTCOME OF THE COLD WAR NOW THEY ARE THE MAIN BULWARK AGAINST THE STRONG FORCES OPPOSING DEMOCRATIZATION IN THE NEWLY INDEPENDENT STATES OF THE FORMER SOVIET UNION AND IN EASTERN EUROPE THESE FORCES ARE GAINING STRENGTH BECAUSE OF TERRIBLE ECONOMIC DIFFICULTIES ANTIDEMOCRATIC EXTREMISTS ARE ONCE AGAIN TRYING TO CONTROL THE FLOW OF INFORMATION IN THESE REGIONS INDEPENDENT NEWSPAPERS AND TV STATIONS IN RUSSIA UKRAINE AND ELSEWHERE HAVE BEEN FORCED TO SHUT DOWN FOR LACK OF FUNDS YESTERDAY'S COMMUNIST PARTY OFFICIALS TOGETHER WITH SOME DEFECTORS FROM THE DEMOCRATIC CAMP FEEL THAT VICTORY IS IN THEIR GRASP THE GREATEST DANGER FACING THE MUNICH RADIOS HOWEVER COMES FROM WASHINGTON NOT MOSCOW THE NEW ADMINISTRATION APPARENTLY WANTS TO CLOSE THE STATIONS MIDLEVEL OFFICIALS IT HAS BEEN REPORTED HAVE DECIDED TO PHASE OUT RADIO LIBERTY AND RADIO FREE EUROPE BY 1994 AND 1995 THROUGH A PROCESS OF CONSOLIDATION AND STREAMLINING AS OUTLINED IN THE PRESIDENT'S ECONOMIC PLAN THE COLD WAR THEY ARGUE IS OVER AND IN ANY CASE THE VOICE OF AMERICA CAN TAKE OVER AMERICA'S BROADCASTING TASKS THE TWO RADIOS NEVER HAD AN EASY LIFE IN THE 1970S SENS WILLIAM FULBRIGHT AND FRANK CHURCH TRIED TO CLOSE THEM DOWN AND ALMOST SUCCEEDED THEY THOUGHT LEONID BREZHNEV WOULD BE ANNOYED BY THE BROADCASTS ACCORDING TO OFFICIAL GUIDELINES ISSUED IN THE 1970S THE RADIOS HAD NO MANDATE TO ADVOCATE THE ESTABLISHMENT OR DISESTABLISHMENT OF ANY PARTICULAR SYSTEM FORM OF STATE ORGANIZATION OR IDEOLOGY IN THE AREAS TO WHICH THEY BROADCAST HOW THE RADIOS SURVIVED I DO NOT KNOW BUT SURVIVE THEY DID NOR WERE THEY DETERRED BY A FEW BOMBS AT THEIR BROADCAST FACILITIES OR BY THE INFILTRATION OF SOME KGB AGENTS THE NEW ADMINISTRATION'S APPARENT DECISION TO SHUT DOWN THE STATIONS A DECISION THAT REQUIRES AN EXECUTIVE ORDER TO BECOME OFFICIAL OR AN ACT OF CONGRESS IS BASED ON SEVERAL MISUNDERSTANDINGS ONE IS PURELY TACTICAL IT ASSUMES THAT CLOSING THE STATIONS WOULD RESULT IN MAJOR SAVINGS IN THE NEAR FUTURE BUT THE ENTIRE COST OF THE STATIONS IS NEGLIGIBLE AS THESE THINGS GO IT IS LESS THAN THE COST OF ONE F16 AIRPLANE A FRACTION OF THE COST OF A SUBMARINE MOREOVER THE STATIONS HAVE CONTRACTUAL COMMITMENTS THAT THEY CANNOT DISCARD FROM ONE DAY TO THE NEXT IN ANY CASE POTENTIAL SAVINGS OR A LACK OF THEM SHOULD NOT BE THE DECISIVE ISSUE IF THE RADIOS DO NOT FULFILL A USEFUL FUNCTION ANY LONGER THEY SHOULD BE CLOSED DOWN IRRESPECTIVE OF THE FACT THAT ONLY THE NEXT ADMINISTRATION'S BUDGET WILL FEEL THE BENEFIT ON THE OTHER HAND IF GEOPOLITICAL REALITIES WARRANT THEIR CONTINUED EXISTENCE THEY DESERVE THE RELATIVELY SMALL AMOUNT OF MONEY THEIR OPERATIONS REQUIRE IN MY VIEW THE PRESENT SITUATION IN EASTERN EUROPE AND IN THE FORMER SOVIET STATES IS CRITICAL AND MORE THAN JUSTIFIES A COMMITMENT TO AMERICA'S MUNICHBASED RADIOS THAT THIS CRITICAL SITUATION HAS A DIRECT BEARING ON US SECURITY AND INTERESTS IS KNOWN TO PRESIDENT CLINTON AT LEAST IN GENERAL TERMS IN A SPEECH LAST FRIDAY HE SAID THAT IF AMERICA HAD BEEN WILLING TO SPEND TRILLIONS OF DOLLARS TO ENSURE COMMUNISM'S DEFEAT IN THE COLD WAR SURELY WE SHOULD BE WILLING TO SPEND A TINY FRACTION OF THAT TO SUPPORT DEMOCRACY'S SUCCESS WHERE COMMUNISM FAILED UNFORTUNATELY IT IS NOT AT ALL CLEAR THAT THE PRESIDENT HIS CHIEF ADVISERS AND LEGISLATORS LIKE SEN RUSS FEINGOLD D WIS WHO HAS INTRODUCED LEGISLATION TO CONSOLIDATE THE RADIOS KNOW ABOUT THE SERIOUSNESS OF THE SITUATION IN THE EAST AND HOW WOULD THEY I DOUBT WHETHER THERE ARE MORE THAN SEVEN OR EIGHT ANALYSTS IN THIS COUNTRY CLOSELY FOLLOWING THE ANTIDEMOCRATIC FORCES IN EASTERN EUROPE AND RUSSIA RIGHT NOW NONE OF THEM IS IN GOVERNMENT IF TOMORROW THE PRESIDENT WANTED A FULL AND RELIABLE REPORT ON THIS THREAT HE WOULD NOT GET IT FROM THE STATE DEPARTMENT OR THE CIA THE ONLY PLACE WHERE THIS INFORMATION IS AVAILABLE AS ANY RUSSIAN EXPERT WOULD TELL HIM IS THE RESEARCH DEPARTMENT OF RADIO LIBERTY IN MUNICH THE VERY ENTITY HIS ADMINISTRATION WANTS TO CONSOLIDATE AND STREAMLINE OUT OF EXISTENCE BUT WHY CONTINUE THE RADIOS SOME ASK IF THEY OVERLAP WITH THE VOICE OF AMERICA THIS QUESTION BETRAYS YET ANOTHER MISUNDERSTANDING THERE IS NO OVERLAP THE TASK OF VOA IS TO PUT IT INELEGANTLY TO SELL AMERICA THE ASSIGNMENT OF THE MUNICH RADIOS IS TO ACT AS A SURROGATE SOURCE OF INFORMATION IN COUNTRIES WHERE THE MEDIA ARE NOT YET FREE OR WHERE THEIR FREEDOM IS THREATENED THIS TROUBLING MEDIACONDITION CAN BE FOUND IN ALL OF EASTERN EUROPE AND THE FORMER SOVIET UNION WITH THE POSSIBLE EXCEPTION OF THE CZECH REPUBLIC BULGARIA SLOVENIA AND PERHAPS ONE OR TWO OTHERS OUT OF 27 COUNTRIES VOA HAS MANY MERITS BUT ITS DIRECT POLITICAL IMPACT IN RUSSIA AND EASTERN EUROPE IS ALMOST NIL WHEREAS THAT OF THE MUNICH RADIOS IS IMMENSE WHAT IS MORE THE MUNICH RADIOS HAVE BUILT UP AN UNRIVALED NETWORK OF CORRESPONDENTS AND A UNIQUE RESEARCH LIBRARY THAT VOA DOES NOT NEED AND CANNOT USE IN ANY CASE THE DIVISION OF LABOR BETWEEN THE TWO OPERATIONS IS OBVIOUS THE ATTEMPT TO ABOLISH IT WOULD PROBABLY RUIN THEM BOTH DEMOCRACY DOES NOT HAVE THAT MANY WEAPONS AGAINST ITS ENEMIES WHY DESTROY THE FEW THAT EXIST ESPECIALLY TWO THAT HAVE PROVED THEMSELVES SO EFFECTIVE IN THE STRUGGLE AGAINST TYRANNY IF A PROPOSAL TO END THE RADIOS HAD BEEN MOOTED TWO OR THREE YEARS AGO IT WOULD STILL HAVE BEEN WRONG BUT AT LEAST SUPERFICIALLY PLAUSIBLE THE COLD WAR SEEMED OVER THE END OF HISTORY WAS AT HAND TODAY EASTERN EUROPE AND RUSSIA FACE A CRITICAL PERIOD THAT MAY DECIDE THEIR FATES AND THAT OF THE WORLD FOR YEARS TO COME TO A CERTAIN EXTENT AMERICA CAN INFLUENCE THE CURRENT STRUGGLE BUT TIME IS RUNNING OUT FAST WHAT HAS THE NEW ADMINISTRATION DONE SO FAR SHORT OF AN EXECUTIVE ORDER OR CONGRESSIONAL ACTION ELIMINATING THE RADIOS IT HAS MADE A NEGATIVE DECISION NOT TO BACK THEM AND YES IT HAS APPOINTED A COORDINATOR FOR ITS POLICY VISAVIS RUSSIA POOR MAN HE IS LIKELY TO COORDINATE A POLICY AND A BUDGET THAT WILL NOT EXIST MR LAQUEUR'S NEWEST BOOK BLACK HUNDREDS THE RISE OF THE EXTREME RIGHT IN RUSSIA WILL BE PUBLISHED BY HARPERCOLLINS LATER THIS YEAR SEE RELATED LETTERS LETTERS TO THE EDITOR A VOICE IN THE WILDERNESS OF OPPRESSION WSJ APRIL 8 1993 9303040064 9304090173 930319 LETTERS TO THE EDITOR WHY FAMILY DOCTORS ARE DISAPPEARING HEALTH PLANS DISCOUNT PAYMENTS FOR SERVICES FOR ONE PENNSYLVANIA PHYSICIAN MEDICARE DISCOUNTED HIS 1992 SERVICES 31 THAT LEAVES ABOUT 15 OF GROSS BILLINGS FOR THE PHYSICIAN'S MEDICAL SKILLS MANAGERIAL ACTIVITIES AND ENTREPRENEURIAL RISKS WHEN YOU CONSIDER THE HOURS WORKED SCHOOLTEACHERS WITH SIMILAR YEARS OF EDUCATION AND EXPERIENCE MAKE MORE PER HOUR THAN FAMILY PHYSICIANS INSTEAD OF PAYING 150 TO A PRIMARYCARE PHYSICIAN FOR A HOUSE CALL TO A BEDBOUND ELDERLY PATIENT INSURERS WILL PAY MANY HUNDREDS OF DOLLARS FOR AMBULANCE TRANSPORTATION TO THE HOSPITAL EMERGENCY ROOM AND HOSPITAL PHYSICIAN CHARGES LAB TESTS WHICH MAY BE NECESSARY ONLY BECAUSE THE PHYSICIAN DOESN'T KNOW THE PATIENT AND TRANSPORTATION HOME MEDICARE WILL PAY THE PHYSICIAN 4328 WHICH IS LESS THAN IT PAYS NURSES FOR HOUSE CALLS AND FAR LESS THAN THE OVERHEAD EXPENSES FOR THE TIME THE HOUSE CALL TAKES THE PHYSICIAN AWAY FROM THE OFFICE FOR AN INJECTION TO EASE TENDINITIS MEDICARE PAYS 150 THE OUTOFPOCKET COSTS TO THE PRIMARYCARE PHYSICIAN ARE 758 NEARLY EQUAL TO THE 15 MARGIN ON AN OFFICE VISIT THE RATIONAL SOLUTION IS SIMPLE REFER THE PATIENT TO AN ORTHOPEDIST DOCTORS KNOW THEY CAN'T LOSE MONEY ON EACH CASE AND SOMEHOW MAKE IT UP ON VOLUME PRIMARYCARE PHYSICIANS WITH DIFFICULT CASES REQUIRING EXTRA TIME FOR EVALUATION AND TEACHING ARE PENALIZED FOR PROVIDING GOOD CARE THE SECOND 15 MINUTES SPENT WITH A PATIENT PAYS 50 LESS THAN THE FIRST 15 MINUTES EVEN THOUGH OVERHEAD IS CONSTANT THE SYSTEM INCENTIVES ENCOURAGE PRIMARYCARE PHYSICIANS TO REFER THESE PATIENTS TO SPECIALISTS NOT JUST WHEN IT'S NECESSARY BUT BECAUSE THE SYSTEM DOES NOT MAKE IT ECONOMICALLY FEASIBLE FOR PRIMARYCARE PHYSICIANS TO PROVIDE THESE SERVICES THE EFFECTS OF THE REIMBURSEMENT SYSTEM ON MEDICAL COSTS ARE SIGNIFICANT PRIMARYCARE PHYSICIANS ARE NOT TAKING ADVANTAGE OF THE SYSTEM THEY ARE TRYING TO SURVIVE IT YOU WANT MORE PRIMARYCARE PHYSICIANS THE SOLUTION IS SIMPLE PAY FAIRLY FOR THEIR TIME AND SERVICES PAID FAIRLY MORE PHYSICIANS WILL BE ATTRACTED TO PRIMARY CARE PRIMARYCARE PHYSICIANS WILL REFER FEWER PATIENTS TO SPECIALISTS WITH CONTINUITY OF CARE FEWER LAB TESTS WILL BE REQUIRED MORE TIME WILL BE SPENT ON PREVENTION AND AS A RESULT TOTAL HEALTH CARE COSTS WILL BE LOWER IT'S A MATTER OF SIMPLE ECONOMICS WHAT GETS REWARDED GETS DONE SEE RELATED LETTER LETTERS TO THE EDITOR WHY FAMILY DOCTORS ARE DISAPPEARING WSJ APRIL 8 1993 9303190113 9304090153 930325 LEISURE & ARTS BOOKSHELF THE PHANTOM GERMAN BOMB BY G PASCAL ZACHARY WHAT IF GERMANY HAD BUILT AN ATOMIC BOMB DURING WORLD WAR II THE WAR AND THIS BLOODY CENTURY WOULD SURELY HAVE TAKEN A TURN FOR THE WORSE BRITISH AND US LEADERS KNEW THIS AT THE TIME AND THEIR FEAR OF A GERMAN BOMB WAS THE RATIONALE FOR THE ALLIES' OWN CRASH EFFORT TO PRODUCE ATOMIC WEAPONS THESE ANXIETIES WERE UNFOUNDED IN THE WANING MONTHS OF THE WAR IN EUROPE US INVESTIGATORS LEARNED THAT THE NAZI BOMB PROJECT WAS A PHANTOM GERMANY'S PHYSICISTS WERE THE FIRST TO SPLIT THE URANIUM ATOM BUT THEY NEVER EVEN MANAGED TO DESIGN A BOMB WHILE THE US MOUNTED THE LARGEST INDUSTRIAL PROJECT IN HUMAN HISTORY IN ORDER TO MAKE TWO BOMBS THE NAZIS SETTLED FOR CONSTRUCTING A MODEST REACTOR FOR STUDYING ATOMIC POWER IN HEISENBERG'S WAR THE SECRET HISTORY OF THE GERMAN BOMB KNOPF 586 PAGES 2750 THOMAS POWERS AUTHOR OF AN INFLUENTIAL HISTORY OF THE CENTRAL INTELLIGENCE AGENCY ARGUES AGAINST THE CONVENTIONAL VIEW THAT THE GERMANS SIMPLY BOTCHED THEIR BOMB PROJECT DRAWING ON NEWLY AVAILABLE DOCUMENTS AND MANY INTERVIEWS WITH PARTICIPANTS MR POWERS SEEKS TO ASSEMBLE WHAT HE CALLS A SHADOW HISTORY THE REAL LIFE THAT STANDS APART FROM THE OFFICIAL VERSION OF EVENTS GERMANY FAILED TO BUILD A BOMB ACCORDING TO MR POWERS'S SHADOWY SOURCES NOT BECAUSE HITLER FRIGHTENED MANY OF GERMANY'S MOST CAPABLE SCIENTISTS INTO EXILE GERMANY FAILED MR POWERS INSISTS BECAUSE ITS LEADING PHYSICIST WERNER HEISENBERG DID NOT WANT TO PUT SUCH A TERRIBLE WEAPON IN HITLER'S HANDS HEISENBERG IS BEST KNOWN TODAY FOR HIS UNCERTAINTY PRINCIPLE A CONSEQUENCE OF THE THENNEW THEORY OF QUANTUM MECHANICS THAT FORCED PHYSICISTS TO ABANDON EXACT MEASUREMENT AT THE SUBATOMIC LEVEL HEISENBERG WON THE NOBEL PRIZE AND RECEIVED NUMEROUS JOB OFFERS IN THE US BEFORE THE WAR BUT HE REFUSED TO LEAVE GERMANY MR POWERS EXCUSES THIS AS NOTHING MORE THAN PATRIOTISM AND SHOWS HOW HEISENBERG CHOSE NOT TO URGE THE NAZIS TO EXPLORE THE REVOLUTIONARY POTENTIAL OF ATOMIC WEAPONS HEISENBERG DID NOT SIMPLY WITHHOLD HIMSELF STAND ASIDE LET THE GERMAN BOMB PROJECT DIE HE KILLED IT MR POWERS WRITES ON ITS FACE THIS CONCLUSION IS A KIND OF HISTORICAL BLASPHEMY SO EMOTIONCHARGED AS TO DRAW CRIES OF OUTRAGE EVEN TODAY FROM SURVIVORS OF THE US MANHATTAN PROJECT BUT MR POWERS SAYS HIS CLAIM IS PROVOCATIVE NOT BECAUSE IT IS WIDE OF THE MARK BUT BECAUSE IT RAISES THE DISQUIETING POSSIBILITY THAT AMERICA'S ATOMIC WARRIORS ACTED IMMORALLY DURING THE WAR IF HEISENBERG CAN BE SAID TO HAVE REFUSED IN WHATEVER DEGREE TO BUILD A BOMB FOR HITLER HE WRITES THEN ALLIED SCIENTISTS ARE IN EFFECT INVITED TO EXPLAIN WHY THEY WERE JUSTIFIED IN BUILDING A BOMB FOR ROOSEVELT THE TROUBLE WITH THIS HYPOTHESIS IS THAT HEISENBERG AS MR POWERS CONCEDES NEVER CLAIMED ANYTHING AS GRAND AS REFUSAL TO WORK ON HITLER'S BEHALF HIS ACTIONS MOREOVER SPOKE LOUDLY TO HIS PEERS IN THE CLUBBY INTERNATIONAL PHYSICS COMMUNITY MR POWERS DESCRIBES THE TIGHTLIPPED NATIONALISTIC HEISENBERG AS INCAPABLE OF ABANDONING GERMANY AT WAR BUT EQUALLY UNWILLING TO UNCORK THE ATOMIC GENIE HIS LABYRINTHINE TALE IS AS TOUGH AND SUSPENSEFUL AS A LE CARRE NOVEL THE ENIGMATIC HEISENBERG TELLS HIS NAZI HANDLERS THAT A BOMB IS POSSIBLE BUT HEDGES ON THE CRUCIAL QUESTION OF HOW QUICKLY HE CAN BUILD ONE THEN HE MEETS WITH THE GREAT AND REVERED PHYSICIST NIELS BOHR IN OCCUPIED DENMARK OSTENSIBLY TO CONVINCE BOHR THAT SCIENTISTS ON BOTH SIDES OF THE WAR SHOULD SUSPEND WORK ON WAYS TO RELEASE THE ATOMIC GENIE FROM ITS BOTTLE BUT BOHR COMES AWAY SUSPICIOUS OF HEISENBERG'S MOTIVES PARTLY BECAUSE THE GERMAN SHOWS HIM WHAT HE BELIEVES TO BE A DESIGN FOR AN ATOMIC BOMB SOON AFTERWARD BOHR ESCAPES TO ENGLAND AND THEN VISITS THE US WHERE HE EXCITES FURTHER SUSPICION ABOUT HEISENBERG'S BOMB IN TIME EMIGRE PHYSICISTS WORKING ON THE AMERICAN BOMB GROW SO OBSESSED WITH HEISENBERG THAT THEY CALL FOR HIS KIDNAPPING AND EVEN HIS ASSASSINATION IN DECEMBER 1944 AFTER MONTHS OF FALSE STARTS THE US SPY MOE BERG ATTENDS A LECTURE BY HEISENBERG IN SWITZERLAND WITH A GUN IN HIS POCKET BERG HAS ORDERS TO SHOOT THE PHYSICIST IF MR POWERS WRITES HE SPEAKS SO MUCH AS A WORD THAT SUGGESTS HITLER HAS AN ATOMIC BOMB IN THE OFFING HEISENBERG SAID NOTHING OF THE SORT FAR FROM KNOWING THE SECRET OF THE BOMB HE OFTEN SEEMED CONFUSED ABOUT THE WHOLE SUBJECT FOR EXAMPLE HE TOLD HIS NAZI HANDLERS THEY WOULD HAVE TO PRODUCE 100 TIMES MORE FISSIONABLE MATERIAL THAN WAS REALLY NEEDED TO BUILD A BOMB WAS THIS JUST A COLOSSAL ERROR AS HEISENBERG'S CRITICS CLAIM OR WAS HE AS MR POWERS ARGUES SIMPLY FEIGNING IN THE END THE CASE FOR HEISENBERG'S CONSCIENCE AND GOOD INTENTIONS IS UNCONVINCING HEISENBERG WHO DIED IN 1976 NEVER PLAINLY STATED WHAT MOTIVATED HIM AND THE ODDS ARE THAT WE WILL NEVER KNOW EVEN MORE TROUBLING HOWEVER IS THE IMPRESSION MR POWERS CREATES THAT ONLY A FEAR OF GERMAN SCIENCE PUSHED THE US INTO THE ATOMIC RACE THIS IS NOT SO BY LATE 1942 THE US WOULD HAVE COMMITTED ITSELF WHOLEHEARTEDLY TO BUILDING A BOMB REGARDLESS OF GERMAN INTENTIONS SIMPLY BECAUSE IT SEEMED RECKLESS TO RUN THE RISK OF ALLOWING ANOTHER NATION TO BE THE FIRST TO DO SO MR ZACHARY A JOURNAL REPORTER IS WRITING A BOOK ABOUT VANNEVAR BUSH AN ORGANIZER OF THE MANHATTAN PROJECT SEE RELATED LETTER LETTERS TO THE EDITOR ORTHODOXY DOOMED NAZIS' ATOM BOMB PLAN WSJ APRIL 8 1993 9303250070 9304090150 930301 HEALTH CURING HEALTH CARE DOCTORS ARE SPURRING EFFORT TO REMEDY THE NATION'S AILING MALPRACTICE SYSTEM BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL THE STATE OF MAINE HAS STARTED TO SHIELD OBSTETRICIANS FROM LIABILITY FOR BIRTH DEFECTS IF THEY FOLLOW A CHECKLIST WHEN THEY TREAT PREGNANT WOMEN THE PROGRAM IS PART OF AN EXPERIMENTAL EFFORT TO CURB MALPRACTICE SUITS WHICH WERE CITED BY SIX OUT OF 10 AMERICANS IN A RECENT SURVEY AS ONE OF THE BIGGEST CAUSES OF SPIRALING US HEALTHCARE COSTS ANOTHER GOAL OF THE PROGRAM IS TO REDUCE COSTS BY ELIMINATING UNNECESSARY TREATMENT DOCTORS PARTICULARLY SOME SPECIALISTS WHO HAVE TO PAY AS MUCH AS 100000 A YEAR IN MALPRACTICEINSURANCE PREMIUMS HAVE BEEN LOBBYING HARD FOR CHANGE THE PRICE OF MEDICAL MALPRACTICE PROTECTION SEEMS NOT TO BE AS HIGH AS THE PUBLIC THINKS IN FACT US PHYSICIANS PAY 9 BILLION IN MALPRACTICE PREMIUMS ANNUALLY OR ONLY ABOUT 1 OF NATIONAL HEALTH COSTS INDIVIDUAL PREMIUMS HAVE ACTUALLY BEEN DECLINING A FACT THAT WOULD SURPRISE PEOPLE WHO HAVE LISTENED TO DOCTORS COMPLAIN THE GREATER COST OF MALPRACTICE MAY BE THE DEFENSIVE MEDICINE DOCTORS ARE FORCED TO PRACTICE SOME EXPERTS BELIEVE THAT THE EXTRA TESTS EXPENSIVE PROCEDURES AND DETAILED PAPERWORK ADD AS MUCH AS 27 BILLION A YEAR TO THE NATION'S HEALTH COSTS THE HEALTHOVERHAUL PLAN THAT PRESIDENT CLINTON HAS PROMISED TO INTRODUCE IN MAY IS ALMOST CERTAIN TO INCLUDE PROPOSALS TO IMPROVE THE CURRENT MEDICAL MALPRACTICE SYSTEM HIS HEALTH REFORM TASK FORCE HEADED BY HILLARY RODHAM CLINTON HAS SET UP A MALPRACTICE AND TORT REFORM WORKING GROUP TO EXPLORE VARIOUS OPTIONS MR CLINTON HAS INDICATED THAT HE SUPPORTS ESTABLISHING ALTERNATIVE DISPUTERESOLUTION SYSTEMS WHICH SETTLE MALPRACTICE DISPUTES OUT OF COURT HE IS ALSO INTERESTED IN ESTABLISHING TREATMENT GUIDELINES FOR VARIOUS ILLNESSES AND CONDITIONS WHICH LIKE THE MAINE PROGRAM MIGHT WELL RESULT IN A REDUCTION IN SOME EXPENSIVE TESTS AND PROCEDURES MEANTIME HEALTH MAINTENANCE ORGANIZATIONS ARE ALREADY SEEKING TO SET STANDARDS FOR THE LEVEL OF CARE THAT DOCTORS SHOULD BE OFFERING TO CUT COSTS SOME HEALTH SPECIALISTS CONTEND THAT DOCTORS SHOULDN'T BE ASKED TO CUT BACK ON TREATMENTS WITHOUT SOME ASSURANCE THAT PATIENTS WON'T SUE THEM THE COSTCONTAINMENT PRESSURES ARE SAYING DO LESS WHILE DOCTORS' CONCERNS ABOUT LIABILITY MAKE THEM WANT TO DO MORE THEY QUITE UNDERSTANDABLY FEEL VERY SQUEEZED SAYS PATRICIA DANZON A WHARTON SCHOOL HEALTH ECONOMIST IN THE 1950S MALPRACTICE SUITS WERE RARE BUT BY 1990 ACCORDING TO AN AMERICAN MEDICAL ASSOCIATION STUDY 77 LAWSUITS WERE FILED FOR EVERY 100 DOCTORS IN RECENT YEARS MALPRACTICE CASES HAVE RESULTED IN SOME OF THE LEGAL SYSTEM'S BIGGEST JURY AWARDS SO EVEN THOUGH MEDIAN AWARDS ARE SUPRISINGLY LOW AS LITTLE AS 36000 IN NORTH CAROLINA FOR EXAMPLE FEAR IS HIGH SAYS RICHARD LAMM A FORMER COLORADO GOVERNOR WHO NOW STUDIES HEALTH POLICY AT THE UNIVERSITY OF DENVER THERE'S NO QUESTION THAT DOCTORS HAVE A FEAR OF LAWYERS THE QUESTION IS HOW RATIONAL IT IS RATIONAL OR NOT MALPRACTICE CONCERNS HAVE TAKEN A HUMAN TOLL ENGENDERING BOTH SKEPTICISM AMONG PATIENTS TOWARD THEIR DOCTORS AND WISTFUL NOSTALGIA AMONG PHYSICIANS I'M TRYING TO TALK MY SON OUT OF GOING INTO MEDICINE SAYS RONALD CILLEY A PHOENIX GYNECOLOGIST I KEEP TRYING TO TELL HIM IT ISN'T THE SAME DR CILLEY QUIT DELIVERING BABIES WHEN HIS MALPRACTICEINSURANCE PREMIUMS REACHED ABOUT 86000 A YEAR HE IS ONE OF HUNDREDS OF DOCTORS IN HIGHRISK SPECIALTIES LIKE OBSTETRICS AND NEUROSURGERY WHO HAVE RADICALLY CURTAILED THEIR PRACTICES OR ABANDONED MEDICINE AS INSURANCE PREMIUMS SOARED IN THE MID1970S AND 1980S OTHERS HAVE JUST TURNED CAUTIOUS AS A CHILD OBSTETRICIAN JASON COLLINS OF SLIDELL LA RECALLS WATCHING HIS OBSTETRICIAN FATHER DIAGNOSE MINOR ILLNESSES OVER THE TELEPHONE BY CONTRAST THE YOUNGER DR COLLINS SAYS A PATIENT RECENTLY CALLED HIM FROM OUT OF TOWN DESCRIBING SYMPTOMS OF AN ORDINARY BLADDER INFECTION RELUCTANTLY DR COLLINS RECOMMENDED SHE GO TO AN EMERGENCY ROOM IN THE TOWN SHE WAS VISITING I'M LEARNING TO BE MORE CAREFUL HE SAYS EVIDENCE IS MURKY ABOUT HOW MUCH IS ADDED TO THE NATION'S HEALTH COSTS BY DEFENSIVE MEDICINE THE EXTRA PRECAUTIONS DOCTORS SAY THEY TAKE TO WARD OFF LAWSUITS INFLATIONADJUSTED DATA FROM A 1987 AMA STUDY PUT THE FIGURE AT 27 BILLION BUT CRITICS COUNTER THAT SOME OF WHAT IS LABELED DEFENSIVE IS DONE SIMPLY BECAUSE DOCTORS MAKE MORE MONEY IF THEY GIVE MORE CARE COMPARED TO THE IMPACT OF FEEFORSERVICE MEDICINE IN CAUSING DOCTORS TO DO TOO MUCH MALPRACTICE IS A SECONDORDER OFFENDER SAYS MARC ROBERTS A HARVARD HEALTHPOLICY PROFESSOR MANY PATIENTS AREN'T MUCH HAPPIER THAN PHYSICIANS WITH THE PRESENT STATE OF AFFAIRS A RECENT HARVARD STUDY FOUND THAT MALPRACTICE LAWSUITS AND INSURANCE SETTLEMENTS COMPENSATED ONLY ONE CLAIM OUT OF EVERY 15 PATIENT INJURIES BELIEVED TO HAVE BEEN CAUSED BY THE NEGLIGENCE OF A DOCTOR OR HOSPITAL THE REAL PROBLEM WITH MALPRACTICE IS THAT SOME PEOPLE GET TOO MUCH AND MANY PEOPLE GET TOO LITTLE SAYS MR LAMM THE FORMER GOVERNOR SUCH LOPSIDED JUSTICE LEGAL SPECIALISTS SAY OCCURS BECAUSE PLAINTIFFS' LAWYERS WHO TYPICALLY TAKE ON MALPRACTICE CASES IN EXCHANGE FOR A PERCENTAGE OF ANY DAMAGES AWARDED REJECT CASES THAT AREN'T LIKELY TO GARNER BIG AWARDS STATE LEGISLATURES HAVE BEEN GRAPPLING WITH MEDICALMALPRACTICE REFORM SINCE THE MID1970S WHEN MASSIVE INSURANCE PREMIUM INCREASES FIRST HIT MEDICINE MANY STATES HAVE ALREADY PASSED LAWS TO CAP DAMAGE AWARDS LIMIT ATTORNEYS' FEES AND SHORTEN THE TIME PERIOD IN WHICH PLAINTIFFS CAN FILE SUIT AFTER AN ACCIDENT OCCURS IN ADDITION TO CHANGES IN THE WAY PATIENTS ARE COMPENSATED FOR INJURIES HEALTH SPECIALISTS SAY HOSPITALS NEED TO BETTER EVALUATE DOCTORS' PERFORMANCE AND THE SPECIALISTS SAY DOCTORS WHO HAVE RECORDS OF REPEATED NEGLIGENCE SHOULD HAVE THEIR LICENSES REVOKED RIGOROUS QUALITY CONTROL ADDS HARVARD'S PROF ROBERTS WOULD BE FAR MORE EFFECTIVE THAN THE CURRENT HANGANOCCASIONALVILLAIN APPROACH THAT APPROACH MAY ULTIMATELY BE DISCARDED AS MORE STATES CONSIDER MALPRACTICE REFORMS THAT GO BEYOND TINKERING WITH THE CURRENT SYSTEM THE MAINE PROGRAM FOR EXAMPLE IS PART OF A FIVEYEAR EXPERIMENT THAT SETS OUT SPECIFIC TREATMENT GUIDELINES FOR PARTICULAR CONDITIONS THE AMERICAN MEDICAL ASSOCIATION ADVOCATES REPLACING JURIES WITH FULLTIME MALPRACTICE HEARING OFFICERS WHOSE DECISIONS COULD BE APPEALED TO AN ADMINISTRATIVE BOARD OF LAWYERS PHYSICIANS AND CONSUMER REPRESENTATIVES SOME LAWYERS AND PHYSICIANS FAVOR AN EVEN MORE RADICAL CHANGE COMPENSATING ALL PATIENTS WHO ARE INJURED BY DOCTORS OR HOSPITALS REGARDLESS OF NEGLIGENCE SUCH A SYSTEM WOULD BE SIMILAR TO WORKERS' COMPENSATION VIRGINIA AND FLORIDA HAVE ADOPTED THIS NOFAULT MODEL FOR BRAINDAMAGED BABIES PAYING THE FULL COSTS OF TREATING THE INFANTS NO MATTER WHO CAUSED THE INJURY OUT OF A FUND SET UP BY ASSESSING DOCTORS AND HOSPITALS A NOFAULT SYSTEM PROBABLY WOULDN'T HELP CUT HEALTH COSTS SINCE MORE PATIENTS WOULD RECEIVE COMPENSATION BUT NOFAULT ADVOCATES SAY IT WOULD MAKE BETTER USE OF MONEY NOW SPENT ON LITIGATION COSTS SOME NOFAULT PROPOSALS CALL FOR HIGHER ASSESSMENTS ON HOSPITALS THAT HAVE POOR RECORDS TO SPUR SUCH HOSPITALS TO MONITOR THEIR QUALITY OF CARE INADEQUATELY DETERS ACCIDENTS FAILS TO REDRESS MOST INJURIES AND IMPAIRS DOCTORPATIENT RELATIONSHIPS COST 36 BILLION SPENT ON MALPRACTICEINSURANCE PREMIUMS AND DEFENSIVE MEDICINE ADJUSTMENTS IN CURRENT SYSTEM CAPS ON DAMAGE AWARDS LIMITS ON ATTORNEYS' FEES PERIODIC RATHER THAN LUMPSUM PAYMENTS TO SUCCESSFUL PLAINTIFFS SHORTER TIME FRAME FOR PATIENTS TO SUE OUTOFCOURT DISPUTE RESOLUTIONS PRETRIAL SCREENING OF CASES BY EXPERTS DOCTORS' GUIDELINES DOCTORS WOULD BE PROTECTED FROM LIABILITY IF THEY FOLLOWED LEGISLATUREAPPROVED GUIDELINES NOFAULT LIKE THE WORKERS' COMPENSATION SYSTEM A DOCTOR AND HOSPITALFUNDED PLAN WOULD REIMBURSE ALL PATIENTS INJURED WHILE UNDER MEDICAL CARE EVEN IF THE CARE WASN'T NEGLIGENT SEE RELATED LETTER LETTERS TO THE EDITOR NOFAULT' MALPRACTICE WSJ APRIL 8 1993 9303010183 9304080174 930408 TECHNOLOGY & HEALTH SOFTWARE PREFERENCES STILL MARK EUROPE AS THE OLD WORLD APPLICATIONS LIKE PAINTING SELLING WELL IN US LAG BEHIND VENERABLE STANDBYS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WHEN IT COMES TO HOW THEY USE THEIR PERSONAL COMPUTERS MOST EUROPEANS ARE PROVING TO BE A BIT UNADVENTUROUS ACCORDING TO A NEW SOFTWAREINDUSTRY ANALYSIS EUROPEANS LAST YEAR SPENT HEAVILY ON SUCH OLD STANDBY PROGRAMS AS WORD PROCESSORS AND SPREADSHEETS THE WORKHORSES OF THE PC INDUSTRY THAT THOUGH NOWADAYS FANCIER AND EASIER TO USE HAVEN'T CHANGED MUCH IN A DECADE BY CONTRAST NEWER APPLICATIONS LIKE PAINTING DRAWING AND RELATIONAL DATABASES TAKING OFF FAST IN THE US MARKET ARE MAINLY FOR THE ADVENTUROUS BUYER IN EUROPE COMPARED WITH AMERICANS EUROPEAN USERS AREN'T SO KEEN TO FIND OUT WHAT THEIR COMPUTERS CAN DO FOR THEM WITH NEW PROGRAMS SAYS GERARD GABELLA MANAGING DIRECTOR OF THE SOFTWARE PUBLISHERS ASSOCIATION EUROPE A TRADE GROUP FOR THE BIG US PC SOFTWARE HOUSES THAT TOGETHER COMPRISE MORE THAN 75 OF THE EUROPEAN MARKET THE US PC SOFTWARE INDUSTRY HAD 169 BILLION IN SALES LAST YEAR IN EUROPE WORD PROCESSORS AND SPREADSHEETS ACCOUNTED FOR 60 OF THAT COMPARED WITH 43 IN THE US ACCORDING TO THE SPA THE EUROPEAN COMPUTER USER ISN'T NECESSARILY TO BLAME FOR THE DIFFERENCE THOUGH ADVERTISING IS ONE FACTOR IN EUROPE THE INDUSTRY POWERHOUSES ARE HEAVILY PROMOTING THEIR STANDARD PRODUCTS AND PRICE IS ANOTHER FACTOR US SOFTWARE HOUSES CHARGE ANYWHERE FROM 15 TO 80 MORE FOR THEIR PACKAGED PC SOFTWARE IN EUROPE THAN IN THE US THE REASONS BESIDES UNABASHED PROFITEERING INCLUDE HIGHER LABOR AND DISTRIBUTION EXPENSES IN EUROPE THAT MEANS EUROPEANS BUY WHAT THEY NEED MOST WORD PROCESSORS AND SPREADSHEETS AND HAVE LESS MONEY LEFT OVER FOR THE FRILLS AN AMERICAN MIGHT SNAP UP IN SOME RESPECTS THOUGH THE EUROPEAN MARKET IS AHEAD OF THE US EUROPEANS FOR INSTANCE HAVE BEEN QUICKER THAN AMERICANS TO SNAP UP PROGRAMS WRITTEN TO RUN WITH MICROSOFT'S BIGSELLING WINDOWS SOFTWARE SYSTEM LAST YEAR 56 OF THE US INDUSTRY'S PC SOFTWARE SALES IN EUROPE WERE FOR WINDOWS SYSTEMS COMPARED TO 41 IN THE US ONE REASON FOR THAT IS THE HISTORICAL STRENGTH OF APPLE COMPUTER INC'S MACINTOSH PCS IN EUROPE THEY WERE THE FIRST WIDELY SOLD PCS TO USE ICONS AND OTHER USERFRIENDLY DEVICES NOW SPORTED BY WINDOWS AND THEIR SUCCESS IN EUROPE PRIMED THE MARKET FOR MICROSOFT WHATEVER THE DIFFERENCES IN TASTES THOUGH THE US COMPANIES STILL MANAGED TO CLEAN UP IN EUROPE LAST YEAR A FOURTHQUARTER BOOM IN SALES TO 510 MILLION FROM 424 MILLION A YEAR EARLIER CONTRIBUTED TO A 24 RISE IN EUROPEAN PC SOFTWARE SALES BY US COMPANIES DURING 1992 TO 169 BILLION THE SPA SAYS AROUND EUROPE SWITZERLAND TOOK THE PRIZE AS THE ZIPPIEST MARKET WITH A 75 GROWTH RATE 9304080172 930408 CORRECTIONS & AMPLIFICATIONS MOONLIGHTING A BRIDAL AND FORMAL WEAR SHOP IS IN PLEASANTON CALIF IN A PAGEONE ARTICLE TUESDAY ABOUT PREGNANT BRIDES THE STORE WAS INCORRECTLY INDENTIFIED AS BEING IN CONCORD CALIF WHERE AN UNRELATED EVENTPLANNING BUSINESS OF THE SAME NAME IS LOCATED 9304080171 930408 TREASURY PLANS TO RAISE 355 BILLION IN OFFERING WASHINGTON THE TREASURY PLANS TO RAISE 355 BILLION IN NEW CASH WITH THE SALE TUESDAY OF ABOUT 975 BILLION IN SEVENYEAR NOTES TO REDEEM 621 BILLION IN MATURING NOTES THE NOTES WILL MATURE APRIL 15 2000 THE CUSIP NUMBER FOR THE NOTES IS 912827K43 NONCOMPETITIVE TENDERS FOR THE NOTES AVAILABLE IN MINIMUM 1000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE NOTES AVAILABLE IN MINIMUM 1000 DENOMINATIONS MUST BE RECEIVED BY 1 PM EDT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES 9304080170 930408 INTERNATIONAL RUSSIA SECURITY AGENTS SEEK TO QUESTION US REPORTER ABOUT STATESECRETS CASE BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW IN A MOVE REMINISCENT OF PREGLASNOST DAYS THE MINISTRY OF SECURITY IS PRESSURING A MOSCOWBASED FOREIGN CORRESPONDENT IN CONNECTION WITH HIS REPORTING ON SUBJECTS THE STATE WANTS TO KEEP HIDDEN THE MINISTRY WHICH HAS TAKEN OVER THE DUTIES OF THE SOVIET KGB SUMMONED FOR QUESTIONING WILL ENGLUND A CORRESPONDENT FOR THE BALTIMORE SUN IN CONNECTION WITH A CRIMINAL CASE AGAINST A RUSSIAN SCIENTIST ACCUSED OF REVEALING STATE SECRETS ABOUT CHEMICALWEAPONS RESEARCH IN RUSSIA MR ENGLUND HAS WRITTEN ABOUT THAT RESEARCH AND HAS FOLLOWED THE SCIENTIST'S CASE THE MINISTRY'S CHIEF INVESTIGATOR ON THE CASE INSISTS THAT MR ENGLUND APPEAR FOR QUESTIONING WITHOUT A LAWYER AND HAS THREATENED TO SEND THE POLICE FOR HIM IF HE FAILS TO COMPLY TODAY THE INVESTIGATOR EARLIER AGREED TO PERMIT MR ENGLUND TO BRING A LAWYER THE US REPORTER SAYS BUT WHEN HE ARRIVED AT LEFORTOVO PRISON THE LAWYER WAS FORBIDDEN ENTRY MR ENGLUND SAYS THAT WHEN HE THEN REFUSED TO ANSWER QUESTIONS THE INVESTIGATOR THREATENED HIM AND ALSO SAID HE COULD CHARGE THE LAWYER WITH OBSTRUCTING THE INVESTIGATION RUSSIAN LAW DOESN'T ALLOW A SUMMONED WITNESS TO BRING A LAWYER THOUGH IT DOESN'T SPECIFICALLY FORBID IT THE RUSSIAN PRESS LAW SAYS THAT ONLY A COURT CAN ORDER A JOURNALIST TO RESPOND TO INDEPTH QUESTIONING ON HIS PUBLISHED WORK AN OFFICER IN THE SECURITY MINISTRY'S PRESS SECTION BORIS ZOTOV WOULDN'T COMMENT ON THE CASE SAYING IT WAS UP TO THE INVESTIGATORS WHO DID THE SUMMONING THEY COULDN'T BE REACHED FOR COMMENT SO FAR MR ENGLUND'S CASE IS FAR LESS SINISTER THAN THE MOST RECENT KGB ATTACK ON A FOREIGN JOURNALIST THE 1986 ARREST OF AN AMERICAN REPORTER NICHOLAS DANILOFF OF US NEWS & WORLD REPORT WHO WAS ACCUSED OF RECEIVING CLASSIFIED DOCUMENTS ARRESTED AND LATER RELEASED IN EXCHANGE FOR A SOVIET PHYSICIST HELD IN THE US ON SPYING ALLEGATIONS BUT THIS IS APPARENTLY THE FIRST CASE SINCE THEN OF SUCH HARASSMENT OF A FOREIGN JOURNALIST A US REPORTER WAS CALLED IN BY THE FOREIGN MINISTRY IN 1991 FOR ALLEGEDLY BREAKING TRAVEL RESTRICTIONS THAT HAVE SINCE BEEN LIFTED IN RECENT YEARS EVEN RUSSIAN JOURNALISTS HAVE RARELY BEEN SUMMONED IN CONNECTION WITH THEIR REPORTING BUT PAVEL GUTIANOV HEAD OF THE COMMITTEE ON JOURNALISTS' RIGHTS IN THE RUSSIAN JOURNALISTS' UNION SAYS THE PRESS NOW FACES MORE DIFFICULTIES THAN IT DID A FEW YEARS AGO BECAUSE GOVERNMENT CONTROL OVER INFORMATION IS ACTUALLY STRONGER THE FIGHT BETWEEN THE EXECUTIVE AND LEGISLATIVE BRANCHES AS IT RELATES TO THE PRESS IS ABOUT WHO WILL GET TO COMMAND THE PRESS EVEN THOUGH BOTH SIDES CLAIM TO BE CONCERNED ABOUT FREEDOM HE SAYS THE SECURITY MINISTRY'S ATTITUDE TOWARD MR ENGLUND IS TO BE EXPECTED SAYS MR GUTIANOV AS PART OF THE GENERAL HYSTERIA AND RECENT DISCUSSION OF AGENTS AND ENEMIES AMONGST US BY INCREASINGLY VOCAL HARDLINERS THE KGB REMAINS THE SAME AS IT ALWAYS WAS HE SAYS THE SAME PEOPLE ARE WORKING THERE AND THEY DON'T WANT PEOPLE MESSING AROUND MR ENGLUND'S LAWYER NANCY RICHMAN AN AMERICAN WORKING FOR TIMESMIRROR CO THE BALTIMORE SUN'S PUBLISHER WHO IS IN MOSCOW TEMPORARILY FOR THE AMERICAN BAR ASSOCIATION SAYS IT STILL ISN'T CLEAR IF THE INVESTIGATOR IS A RENEGADE OR DOING IT WITH THE FULL SUPPORT OF THE GOVERNMENT FOREIGN MINISTRY OFFICIALS SAID THEY WERE UNAWARE OF THE CASE 9304080169 930408 REVIEW & OUTLOOK EDITORIAL ASIDES NEW OWL HOWL HOW ABOUT HOLDING THE NEXT TIMBER SUMMIT IN FLAGSTAFF ARIZONA MANY PEOPLE DON'T KNOW IT BUT THAT SOUTHWESTERN STATE HAS A SIGNIFICANT FOREST INDUSTRY OR PERHAPS WE SHOULD SAY HAD WE'VE DISCOVERED THAT NOW THE MEXICAN SPOTTED OWL HAS BEEN DECLARED A PROTECTED SPECIES LIKE ITS NORTHERN COUSIN AND OLDGROWTH LOGGING IS BEING ABRUPTLY CURBED IN THE KAIBAB NATIONAL FOREST AS IN THE NORTHWEST THE QUESTION OF HOW MUCH MORE CUTTING THE PUBLIC LANDS OUGHT TO TAKE IS A CONTENTIOUS ONE BUT THE ECONOMIC EFFECTS IN A STATE JUST REGAINING ITS FINANCIAL BALANCE ARE LESS SUBJECT TO DISPUTE 9304080168 930408 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 3/4 LOW 2 13/16 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 CORP308 30 TO 119 DAYS 310 120 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 317 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 281 SIX MONTHS 299 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 310 ONE MONTH 310 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 302 60 DAYS 303 90 DAYS 306 120 DAYS 308 150 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 WEDS 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 728 60 DAYS 738 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 727 60 DAYS 737 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 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 9304080167 930408 US TO DISMISS CHARGES AGAINST CLIFFORD ALTMAN LAWYERS STILL FACE TRIALS IN NEW YORK ON BCCI PERHAPS NEW US CASE BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT MOVED TO DISMISS FEDERAL INDICTMENTS AGAINST CLARK CLIFFORD AND ROBERT ALTMAN THE WASHINGTON LAWYERS CHARGED IN THE BCCI SCANDAL BUT THE TWO MEN STILL FACE WIDER INDICTMENTS IN NEW YORK STATE AND COULD WELL FACE NEW FEDERAL CHARGES IN A NEWS RELEASE THE JUSTICE DEPARTMENT SAID IT MADE YESTERDAY'S MOVE SO AS NOT TO PREJUDICE OR INTERFERE WITH THE CURRENT STATE PROSECUTION OF MR ALTMAN ON BANK FRAUD AND BRIBERY CHARGES IN NEW YORK THE FEDERAL CHARGES ALLEGED THAT THE TWO LAWYERS CONSPIRED TO DEFRAUD GOVERNORS OF THE FEDERAL RESERVE BOARD AND CONCEALED FACTS FROM GOVERNMENT INVESTIGATORS MESSRS CLIFFORD AND ALTMAN HAVE DENIED THE STATE AND FEDERAL CHARGES BROUGHT AGAINST THEM JULY 29 THE STATE FRAUD AND BRIBERY CHARGES LIKE THE FEDERAL INDICTMENTS ARISE OUT OF WORK THEY DID FOR BANK OF CREDIT & COMMERCE INTERNATIONAL WHICH WAS SHUT DOWN BY BANK REGULATORS IN THE US AND SEVERAL OTHER NATIONS ON JULY 5 1991 WITH ESTIMATED LOSSES OF 10 BILLION TO DEPOSITORS THE ROGUE BANK WAS A SUBSIDIARY OF BCCI HOLDINGS LUXEMBOURG SA FEDERAL JUDGE JOYCE HENS GREEN RECENTLY SET JUNE 1 AS THE START OF THE TRIAL OF MESSRS CLIFFORD AND ALTMAN ON FEDERAL CHARGES IN WASHINGTON EVEN THOUGH MR ALTMAN'S TRIAL ON THE NEW YORK STATE CHARGES BEGAN IN MARCH THE TRIAL ON MR CLIFFORD'S STATE INDICTMENT WAS POSTPONED BECAUSE OF HIS ILL HEALTH THE 86YEAROLD MR CLIFFORD A FORMER SECRETARY OF DEFENSE AND COUNSEL TO THE PAST FOUR DEMOCRATIC PRESIDENTS UNDERWENT HEART BYPASS SURGERY LAST MONTH THE JUSTICE DEPARTMENT MOTION TO DISMISS THE FEDERAL CHARGES WOULD EFFECTIVELY REMOVE THE SCHEDULING CONFLICT WITH MR ALTMAN'S CURRENT TRIAL JUDGE GREEN IS EXPECTED TO RULE ON THE MOTION SOON JUDGE GREEN HAD STUCK TO THE JUNE 1 STARTING DATE DESPITE THE PROGRESS OF THE NEW YORK PROSECUTION HER STANCE LEFT THE JUSTICE DEPARTMENT LITTLE OPTION BUT TO MOVE TO DISMISS THE CURRENT FEDERAL INDICTMENTS EVEN THOUGH IT MAY LATER BRING NEW CHARGES THE MOTION SAID MOST SIGNIFICANTLY PREPARATION FOR A FEDERAL TRIAL WILL BURDEN THE NEW YORK PROSECUTORS EVIDENCE AND WITNESSES WOULD OVERLAP MEANING THAT A CONCURRENT FEDERAL PROSECUTION INEVITABLY WILL INTERFERE WITH THE STATE CASE THE MOTION SAID DESPITE ITS MOTION TO DISMISS THESE FEDERAL CHARGES THE JUSTICE DEPARTMENT STRESSED THAT IT REMAINS FREE TO BRING NEW AND EVEN BROADER CHARGES AGAINST THE TWO LAWYERS THE DEPARTMENT WHICH INDICATED IT WOULD MAKE SUCH A DECISION AT THE END OF THE STATE TRIAL SAID THAT BOTH DEFENDANTS HAVE AGREED THEY WON'T CONTEST THE GOVERNMENT'S RIGHT TO BRING BROADER CHARGES AGAINST THEM A SENIOR JUSTICE DEPARTMENT OFFICIAL LAURENCE URGENSON SAID AT A RECENT FEDERAL COURT HEARING BEFORE JUDGE GREEN THAT HIS DEPARTMENT WAS CONSIDERING FILING A REVISED AND BROADENED INDICTMENT AGAINST MESSRS CLIFFORD AND ALTMAN BECAUSE OF NEW INFORMATION IT HAD JUST RECEIVED THE DEPARTMENT RECENTLY TOOK A DEPOSITION FROM DILDAR RIZVI A FORMER BCCI OFFICER WHO ACTED AS THAT BANK'S LIAISON WITH MESSRS CLIFFORD AND ALTMAN DURING THE TAKEOVER OF FINANCIAL GENERAL BANKSHARES FINANCIAL GENERAL WAS RENAMED FIRST AMERICAN BANKSHARES INC IN 1982 WHEN THE BCCIBACKED BID FOR THE WASHINGTON BANKHOLDING COMPANY SUCCEEDED A LARGE PART OF BOTH THE FEDERAL AND STATE CHARGES AGAINST MESSRS CLIFFORD AND ALTMAN RELATE TO BCCI'S ALLEGED SECRET AND ILLEGAL OWNERSHIP OF FIRST AMERICAN 9304080166 930408 CORPORATE FOCUS ADVANTA FINDS EDGE WITH CAREFUL CUSTOMER SCREENING CREDIT CARD ISSUER SEEKS BEST CLIENTS USES TECHNOLOGY TO KEEP THEM BY PETER PAE STAFF REPORTER OF THE WALL STREET JOURNAL HORSHAM PA WITH A DELUGE OF NEW CREDIT CARDS AND A RISE IN COSTCONSCIOUS CONSUMERS CLAMORING FOR LOWER INTEREST RATES CARD ISSUERS ARE FINDING PROFITS FROM PLASTIC INCREASINGLY ELUSIVE BUT ONE QUIET RELATIVELY LITTLEKNOWN FINANCIALSERVICES COMPANY IS BUCKING THE TREND WHILE THE LARGEST ISSUERS SUCH AS CITICORP AND CHASE MANHATTAN CORP HAVE BEEN LOSING MARKETSHARE TO UPSTARTS SUCH AS GENERAL MOTORS CORP AND GENERAL ELECTRIC CO ADVANTA CORP HAS BEEN TURNING IN DOUBLEDIGIT GROWTH IN REVENUES AND PROFITS IT MANAGES THIS THROUGH SEVERAL STRATEGIES IT'S ESPECIALLY SELECTIVE ABOUT CUSTOMERS IT TAILORS CARD TERMS TO EACH INDIVIDUAL AND IT USES INNOVATIVE TECHNOLOGY TO CONTINUALLY IMPROVE SERVICES AND PRODUCTS WHAT'S MORE ADVANTA DOES ALL THIS EFFICIENTLY THE END RESULT IS THAT ITS CARD HOLDERS CARRY HIGHER BALANCES WHILE ADVANTA KEEPS ITS MASTERCARDS AND VISAS OUT OF THE HANDS OF POTENTIAL DEADBEATS IN THE FIRST PLACE AFTER CULLING CREDITWORTHY NAMES FOR INSTANCE FROM GENERALLY AVAILABLE CREDIT BUREAU LISTS IT PUTS POTENTIAL CARD HOLDERS THROUGH MORE THAN TWO DOZEN OTHER PROPRIETARY DATABASES THAT NARROW THE TARGET GROUP EVEN FURTHER AMONG THE SCREENS ARE TOTAL DEBT OUTSTANDING DEBT ON OTHER CREDIT CARDS AND WHAT THE CUSTOMER PAYS FOR OTHER CARDS MOST ISSUERS TYPICALLY LOOK AT ONLY TWO MAIN CRITERIA INCOME AND BILLPAYING HISTORY BASED ON THE CHECKS ONE OF THE MOST EXTENSIVE IN THE INDUSTRY ADVANTA THEN TAILORS THE PRICING TO THE SELECTIVE CUSTOMERS OFTEN RESULTING IN BETTER INTEREST RATES MORE FAVORABLE TERMS AND LARGER CREDIT LINES THAN ITS COMPETITORS WE GET ENOUGH INFORMATION ABOUT THE CUSTOMER AS TO KNOW WHAT DOESN'T SATISFY THEM ABOUT THE CREDIT CARDS THEY HAVE SAID RICHARD GREENAWALT ADVANTA'S PRESIDENT WE TRY TO PLAY OFF THAT DISSATISFACTION THUS ADVANTA SAYS ITS CUSTOMERS USE ITS CREDIT CARDS MORE THAN OTHERS AND MORE IMPORTANT FOR PROFITS A HIGHERTHANAVERAGE PERCENTAGE OF ITS CUSTOMERS MAINTAIN OUTSTANDING BALANCES AND PAY FINANCE CHARGES FOR THE PAST FOUR YEARS ADVANTA'S CREDIT CARD RECEIVABLES HAVE GROWN AT A RATE OF 35 TO 40 A YEAR FAR EXCEEDING INDUSTRY GROWTH RATES OF 6 AT THE SAME TIME IT HAS INCURRED LOWER CREDIT LOSSES BECAUSE ITS CUSTOMERS TEND TO PAY THEIR BILLS MORE PROMPTLY THAN DO THE HOLDERS OF OTHER CARDS ADVANTA'S STRATEGY OF MICROMARKETING OR SEGMENTING POTENTIAL CUSTOMERS INTO MINUTE DETAIL AND TAILORING THE PRICING AND TERMS OF PRODUCT TO THE INDIVIDUAL CUSTOMER IS IN STARK CONTRAST TO WHAT HAS BEEN THE INDUSTRY'S TRADITIONAL WAY OF ISSUING CREDIT CARDS LARGE ISSUERS FOR EXAMPLE HAVE TENDED TO MAIL OUT OFFERS FOR CREDIT CARDS TO ANYONE WITH A GOOD CREDIT RECORD OFTEN BLITZING THE NATION WITH 30 MILLION TO 40 MILLION PIECES OF MAIL OFFERING THE SAME INTEREST RATES AND ANNUAL FEES TO EVERYONE CITICORP FOR EXAMPLE GREW TO BE THE LARGEST ISSUER IN THE US BY MARKETING ONLY TWO TYPES OF CREDIT CARDS ONE FOR THE GENERAL POPULATION CALLED THE CLASSIC AND THE OTHER FOR MORE AFFLUENT CUSTOMERS CALLED PREFERRED MASSMARKETING EFFORTS ARE MORE COSTLY AND LESS PROFITABLE SAYS ROBERT SKOLNICK OF CREDIT CARD RESEARCH FIRM BAI RESEARCH CORP ONE REASON IS THAT THE CREDIT CARD MARKET IS SATURATED A TYPICAL CONSUMER ALREADY HAS FOUR OR FIVE DEPARTMENT STORE CARDS AND TWO OR THREE GENERALPURPOSE CREDIT CARDS AS A RESULT ISSUERS ARE FINDING THEY NOT ONLY HAVE TO LOWER INTEREST RATES BUT HAVE TO SPEND MORE TO ACQUIRE NEW CUSTOMERS AND KEEP EXISTING ONES FROM DEFECTING ADDING TO THE CUTTHROAT COMPETITION HAS BEEN AN INCREASE IN CONSUMERS' SENSITIVITY TO INTEREST RATES AND FEES WHICH IS PROMPTING CARD CUSTOMERS TO BE MORE SAVVY ABOUT CHOOSING A CREDIT CARD THE NEXT BATTLEGROUND IN THE CREDIT CARD WARS WILL BE HOW COMPANIES CAN BEST MICROMARKET THEIR CARDS MR SKOLNICK SAYS THE ADVANTAGE WILL GO TO THOSE WHO CAN BEST MANIPULATE DATA TO IDENTIFY THE MOST POTENTIALLY LUCRATIVE CUSTOMERS TO MAINTAIN LOYALTY AND BOLSTER SPENDING ON ITS CARD ADVANTA FIRST DRAWS THE KIND OF CUSTOMER IT WANTS AND THEN CONTINUALLY BEATS THE COMPETITORS ON PRICING AND TERMS IT DOESN'T ACCEPT APPLICATIONS BUT RATHER GOES AFTER CUSTOMERS WHO FIT ITS DESIRED PROFILE IT HAS BEEN ABLE TO SKIRT PRIVACY CONCERNS BY INSISTING THAT IT DOESN'T SHARE THE PROPRIETARY INFORMATION IT GATHERS AFTER CHOOSING THE MOST CREDITWORTHY ADVANTA MATCHES THE POTENTIAL CUSTOMERS WITH THE RIGHT MIX OF PRICING AND CREDIT LINE A CUSTOMER FOR EXAMPLE MAY RECEIVE AN OFFER WITH TERMS COMPLETELY DIFFERENT FROM A NEIGHBOR WHO MAY HAVE THE SAME ANNUAL INCOME BUT DOESN'T SPEND AS MUCH ON CREDIT CARDS OR IF CREDIT RECORDS REVEAL A CUSTOMER TYPICALLY PAYS BILLS AT A CERTAIN TIME OF THE MONTH ADVANTA WILL TIME ITS BILLING CYCLE TO COINCIDE WITH THAT HABIT WHILE GM OFFERS A CARD WITH THE SAME INTEREST RATE AND TERMS TO EVERYONE ADVANTA MAY HAVE 30 DIFFERENT OFFERS IN A MAILING SAID ROBERT MARSHALL PRESIDENT OF ADVANTA'S CREDIT CARD DIVISION IN THE END SUCH MANIPULATION OF DATA HELPS US KEEP AHEAD OF THE COMPETITION SAYS ADVANTA'S MR GREENAWALT NOTING THAT THE COMPANY'S CUSTOMERS KEEP A BALANCE OUTSTANDING THAT IS TWICE THE INDUSTRY AVERAGE OF ABOUT 1200 ADVANTA ASSERTS IT IS WINNING A MUCH LARGER PROPORTION OF A CUSTOMER'S TOTAL CHARGES 35 COMPARED WITH THE THE AVERAGE OF 10 TO 15 IN ADDITION WITH THE TECHNOLOGICAL EDGE THE COMPANY HAS BEEN ABLE TO INNOVATE MORE QUICKLY AND COME OUT WITH NEW OFFERS FASTER THAN ITS COMPETITORS SAY CREDIT CARD EXPERTS IT WAS THE FIRST TO COME OUT WITH A NOANNUALFEE GOLD CARD THEY NOTE AND THE FIRST TO STEAL AWAY CARD HOLDERS FROM OTHER ISSUERS BY PROMOTING BALANCE TRANSFER PROGRAMS WHICH TRANSFER BALANCES FROM OLD CARDS TO ADVANTA CARDS BUT PITFALLS ABOUND MR GREENAWALT CONCEDES TO MAINTAIN ITS PROFIT LEVELS IT MUST CONTINUALLY STAY AHEAD OF THE COMPETITION BY TAKING RISKS THAT COULD ULTIMATELY DERAIL EARNINGS IN 1988 IT HAD TO TAKE HUGE CREDIT LOSSES BECAUSE IT WASN'T ABLE TO HANDLE ITS RAPID GROWTH THE COMPANY SAYS IT HAS SINCE PUT IN PLACE BETTER CONTROLS FOR IDENTIFYING POOR BILLPAYING CUSTOMERS AND KEEPING ON TOP OF THEM AND OF COURSE BEING AHEAD ALSO MEANS THEY ARE BEING INCREASINGLY EMULATED THE NOANNUALFEE AND BALANCE TRANSFER OFFERS ARE COMMON IN THE INDUSTRY NOW ALSO ITS EXECUTIVES CONTINUE TO GET RAIDED THE COMPANY INSISTS HOWEVER THAT IT IS NIMBLE ENOUGH TO TAKE ADVANTAGE OF NEW TECHNOLOGY MUCH FASTER THAN ITS COMPETITORS AND NOT MANY ISSUERS CAN SAY THAT SAID WARREN KANTOR CHIEF FINANCIAL OFFICER FOR THE COMPANY 9304080165 930408 INTERNATIONAL PETROFINA TAKES STEPS TO AVOID TAKEOVER BIDS BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS BELGIAN OIL COMPANY PETROFINA SA PLANS TO BOLSTER ITS TAKEOVER DEFENSES AMID INTENSE MARKET SPECULATION THAT ONE OR MORE HOSTILE SUITORS HAVE AMASSED SHARES IN THE COMPANY PETROFINA WHICH IS CONTROLLED BY BELGIAN FINANCIER ALBERT FRERE CALLED A SPECIAL SHAREHOLDERS MEETING FOR APRIL 27 TO VOTE ON THE PROPOSED MEASURES THE COMPANY'S STOCK PRICE HAS SURGED 20 SINCE THE START OF THE YEAR AMID RUMORS THAT THE FRENCH STATECONTROLLED OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE MAY BE SEEKING TO ACQUIRE ITS BELGIAN COMPETITOR ELF LAST MONTH DENIED HAVING ANY DESIGNS ON PETROFINA BUT AT THE SAME TIME THE FRENCH COMPANY ACKNOWLEDGED OWNING AN UNSPECIFIED PETROFINA STAKE OF LESS THAN 5 THE MINIMUM DISCLOSURE THRESHOLD UNDER BELGIAN LAW MARKET PARTICIPANTS IN BRUSSELS LONDON AND PARIS HOWEVER BELIEVE ELF ALLIES MAY HAVE BUILT UP SIZABLE STAKES IN PETROFINA IN TRADING ON THE BRUSSELS BOURSE YESTERDAY PETROFINA CLOSED UNCHANGED AT 8980 BELGIAN FRANCS 27075 THE PROPOSED CHANGES IN PETROFINA'S STATUTES INCLUDE LOWERING THE MINIMUM SHAREHOLDER DISCLOSURE THRESHOLD TO 3 AND CREATING A CLASS OF NONVOTING PREFERRED STOCK THE BOARD ALSO WOULD GET THE AUTHORITY TO REPURCHASE THE COMPANY'S OWN SHARES OR ISSUE STOCK CONVERTIBLE DEBENTURES OR SUBSCRIPTION RIGHTS WITHOUT PRIOR SHAREHOLDER APPROVAL THESE ARE DISPOSITIONS THAT GO IN THE DIRECTION OF BETTER SHAREHOLDER TRANSPARENCY AND BOLSTERING OUR DEFENSES AGAINST ANY HOSTILE OPERATIONS A PETROFINA SPOKESWOMAN SAID SHE ADDED HOWEVER THAT THE COMPANY IS SERENE AND THAT MANY OTHER BELGIAN COMPANIES HAVE TAKEN SIMILAR STEPS THE LOWER DISCLOSURE THRESHOLD MIGHT BRING A FEW SURPRISES ANALYSTS SAID UNCOVERING HITHERTO UNKNOWN SHAREHOLDERS IT WILL CERTAINLY CLARIFY WHO HAS BEEN OPERATING ON THE MARKET SAID SUSAN SCOTT AT JAMES CAPEL & CO IN LONDON FEW ANALYSTS ACTUALLY BELIEVE THAT PETROFINA THE WORLD'S 12THLARGEST PRIVATESECTOR OIL COMPANY AND BELGIUM'S BIGGEST INDUSTRIAL CONCERN IS ABOUT TO BE TAKEN OVER MR FRERE PETROFINA'S CHAIRMAN HAS A BLOCKING MINORITY OF ABOUT 27 THROUGH HIS HOLDING COMPANY GROUPE BRUXELLES LAMBERT AND ALLIED CONCERNS MR FRERE'S CONTROL IS FURTHER CEMENTED BY AN ALLIANCE WITH SOCIETE GENERALE DE BELGIQUE WHICH CONTROLS AN INDIRECT STAKE OF 11 SGB ITSELF IS 61OWNED BY THE FRENCH HOLDING COMPANY CIE FINANCIERE DE SUEZ SOME ANALYSTS EXPECT THE SPECULATIVE BUBBLE AROUND PETROFINA WILL SOON BURST THE COMPANY'S FUNDAMENTALS AREN'T PARTICULARLY STRONG IT'S HEAVILY INDEBTED EARNINGS HAVE BEEN DEPRESSED BY TIGHT REFINING MARGINS AND WEAK OIL PRICES AND THE COMPANY FACES HEAVY SAFETY INVESTMENTS AT ITS EKOFISK OIL PRODUCTION FACILITY IN THE NORTH SEA 9304080164 930408 WHO'S NEWS GENERAL MILLS CORP GENERAL MILLS CORP MINNEAPOLIS LESLIE FRECON FORMERLY A VICE PRESIDENT WAS NAMED SENIOR VICE PRESIDENT CORPORATE FINANCE OF THIS FOOD AND RESTAURANT CONCERN SUCCEEDING DAVE KELBY WHO IS RETIRING 9304080163 930408 ARMCO TO BUILD STEEL MINIMILL AT MANSFIELD OHIO BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH ARMCO INC SAID IT PLANS TO BUILD A FLATROLLED STEEL MINIMILL AT ITS FACILITY IN MANSFIELD OHIO JOINING A MOVEMENT BY OTHER LARGE STEELMAKERS TOWARD THE SMALLER MOREEFFICIENT PLANTS JAMES F WILL PRESIDENT SAID IN AN INTERVIEW THAT THE PLANT WHICH COULD BE COMPLETED WITHIN TWO YEARS WOULD USE THE THINSLAB CASTING METHOD SIMILAR TO ONE USED BY MINIMILL NUCOR CORP THAT CASTS MOLTEN STEEL INTO TWOINCH SLABS OF STEEL AND THEN ROLLS IT INTO SHEET ARMCO'S DECISION PROVIDES FURTHER EVIDENCE OF THE THREAT TO LARGE TRADITIONAL MILLS IN THEIR LAST MAJOR PRODUCT FLATROLLED STEEL USX CORP'S US STEEL THE NATION'S LARGEST INTEGRATED PRODUCER INTENDS TO BEGIN BUILDING SUCH A MILL WITHIN THE NEXT 18 MONTHS AND ACME METALS INC IS WEIGHING SIMILAR PLANS DOFASCO INC AN INTEGRATED CANADIAN PRODUCER HAS ANNOUNCED PLANS TO BUILD SUCH A MILL IN THE US ARMCO WILL INVEST ABOUT 100 MILLION IN THE MILLIONTONAYEAR THINSLAB CASTER IT ALREADY HAS AN ELECTRIC FURNACE AND ROLLING FACILITIES IN MANSFIELD THE MILL WILL PRODUCE HALF SPECIALTY STEEL AND HALF TRADITIONAL CARBON STEEL ARMCO SAID A FINAL DECISION ON THE FACILITY DEPENDS ON AGREEMENTS WITH STATE OFFICIALS THE UNITED STEELWORKERS UNION AND POWER SUPPLIERS CONSTRUCTION WOULD BE COMPLETED ABOUT 18 MONTHS AFTER ARMCO FORMALLY ANNOUNCES THE MILL WHICH IT ANTICIPATES DOING THIS SUMMER ARMCO THE NATION'S SECOND LARGEST SPECIALTYSTEEL MAKER ALSO SAID IT WOULD RELOCATE ITS HEADQUARTERS FROM PARSIPPANY NJ TO PITTSBURGH CONSOLIDATING OFFICES AND REDUCING ITS CORPORATE STAFF OF 220 BY 65 TO 70 JOBS ARMCO SAID THE COST WOULD BE A COUPLE OF MILLION DOLLARS AND WAS PREVIOUSLY ACCOUNTED FOR IN A 188 MILLION FOURTHQUARTER CHARGE IT HASN'T YET FOUND A LOCATION IN PITTSBURGH WHICH IS ALREADY HOME TO ALLEGHENY LUDLUM CORP AND USINOR SACILOR SA'S J&L SPECIALTY PRODUCTS CORP THE NATION'S LARGEST AND THIRD LARGEST SPECIALTYSTEEL MAKERS RESPECTIVELY ARMCO SAID THE MOVE WOULD BRING THE HEADQUARTERS CLOSER TO ITS OPERATIONS THE COMPANY ALSO PLANS TO INSTALL AT ITS BUTLER PA FACILITY A NEW STRIPCASTING OPERATION THAT CONVERTS MOLTEN STEEL DIRECTLY INTO STEEL SHEET A MORE EFFICIENT PROCESS THAN OTHER METHODS HOWEVER ARMCO SAID THE TECHNOLOGY WHICH HASN'T YET BEEN USED IN THE STEEL INDUSTRY IS AT LEAST TWO YEARS FROM COMMERCIALIZATION BOTH THE BUTLER AND MANSFIELD FACILITIES WOULD BE PART OF ARMCO INC AND SEPARATE FROM ARMCO STEEL CO ITS CARBON STEEL JOINT VENTURE WITH JAPAN'S KAWASAKI STEEL CORP ROBERT L PURDUM CHIEF EXECUTIVE OFFICER SAID THE COMPANY ISN'T TOO FAR AWAY FROM PROFITABILITY ARMCO HAS POSTED LOSSES FOR EACH OF THE PAST THREE YEARS HOWEVER HE DECLINED TO OFFER A SPECIFIC PROJECTION SEPARATELY ARMCO STEEL SAID IT AGREED TO SELL ITS STEELCOIL COATING BUSINESS TO MATERIAL SCIENCES CORP A MAKER OF COATEDMATERIALS TECHNOLOGIES IN ELK GROVE VILLAGE ILL TERMS WEREN'T DISCLOSED 9304080162 930408 INTERNATIONAL MICHELIN PLANS CUTS DESPITE PROFIT FOR '92 BY DAVID PEARSON SPECIAL TO THE WALL STREET JOURNAL PARIS AFTER A DRASTIC TWOYEAR DIET THAT FORCED IT TO CUT 16000 JOBS GROUPE MICHELIN RETURNED TO PROFITABILITY IN 1992 BUT ONLY TO ANNOUNCE YESTERDAY THAT IT WILL HAVE TO GO THROUGH YET ANOTHER ROUND OF CUTBACKS BECAUSE BUSINESS CONDITIONS HAVE WORSENED THE FRENCH TIRE GIANT POSTED A NET PROFIT OF 79 MILLION FRANCS 145 MILLION IN 1991 IT HAD A LOSS OF 699 MILLION FRANCS ALTHOUGH THAT IN ITSELF REPRESENTS A SUBSTANTIAL TURNAROUND IT HIDES THE FACT THAT SECONDHALF LOSSES ALMOST WIPED OUT A FIRSTHALF PROFIT OF 820 MILLION THE 1992 FIGURE WOULD HAVE BEEN HIGHER EXCEPT FOR A PROVISION OF 587 MILLION FRANCS LINKED TO NEW US ACCOUNTING STANDARDS BUT FINANCIAL ANALYSTS WERE NEVERTHELESS EXPECTING A PROFIT CLOSER TO 800 MILLION FRANCS COMPANY OFFICIALS ARE GLOOMY ABOUT THE PROSPECTS FOR 1993 AND ANNOUNCED A NEW AUSTERITY PROGRAM THAT WILL MEAN ANOTHER TWO YEARS OF PAIN FOR THE GROUP'S EMPLOYEES FACED WITH AN EXPECTED 10 DROP IN EUROPEAN CAR SALES THIS YEAR MICHELIN EXECUTIVES SAY FURTHER RED INK IS LIKELY IN THE FIRST HALF OF THIS YEAR AND THEY CONCEDE THAT EVEN IF SALES PICK UP SHARPLY LATER THIS YEAR IT'S UNLIKELY THAT THE GROUP WILL SHOW A FULLYEAR PROFIT MICHELIN AIMS TO CUT PRODUCTION COSTS BY 35 BILLION FRANCS OVER THE NEXT TWO YEARS THE 199192 COSTCUTTING DRIVE WHICH REDUCED THE GROUP'S STAFF TO ABOUT 115000 WORKERS ALLOWED MICHELIN TO LOP THREE BILLION FRANCS OFF ITS PAYROLL COSTS ERIC BOURDAIS DE CHARBONNIERE MICHELIN'S FINANCE DIRECTOR INDICATED THAT THE GROUP'S ACTIVITIES IN NORTH AMERICA BRITAIN THE NETHERLANDS ITALY SPAIN AND GERMANY AS WELL AS IN FRANCE WILL ALL BE AFFECTED HE SAID IT WILL BE DIFFICULT TO AVOID A NEW ROUND OF JOB CUTS AS SALARIES ACCOUNT FOR SOME 27 BILLION FRANCS OF THE COMPANY'S 36 BILLION FRANCS OF FIXED CHARGES EARLIER THIS YEAR MICHELIN'S FRENCH MANAGERS GOT A TASTE OF THE BITTER MEDICINE AHEAD THEY WERE ASKED TO ACCEPT VOLUNTARY PAY CUTS OF AS MUCH AS 6 IN MARCH AND APRIL TO SHARE THE PAIN OF THE COMPANY'S BLUECOLLAR WORKERS WHO HAVE HAD THEIR WORKING HOURS CUT BACK SINCE DECEMBER THE COMPANY HAD BASED ITS 199192 CUTBACKS ON THE ASSUMPTION THAT THERE WOULD BE NO GROWTH IN NEW CAR SALES IN EUROPE IN 1993 BUT AT THE TIME NO ONE FORESAW THE POSSIBILITY OF A 10 PLUNGE MR BOURDAIS DE CHARBONNIERE OBSERVED IN 1990 AND 1991 MICHELIN WAS HIT BY THE DOUBLE WHAMMY OF FALLING DEMAND FOR ITS TIRES AND A PRICE WAR THAT SCALPED MARGINS TIRE MAKERS WORLDWIDE HAVE BEEN GRADUALLY RESTORING THEIR MARGINS WITH PRICE INCREASES BUT THERE ARE LINGERING FEARS THAT COLLAPSING VOLUMES WILL PROVOKE A NEW BATTLE MICHELIN'S GROUP SALES FELL 802 MILLION FRANCS IN 1992 TO 6685 BILLION FRANCS 9304080161 930408 MARKETING BRIEF NOTED WHO'S NEWS BRUCE R FELDMAN 44 WAS NAMED SENIOR VICE PRESIDENT OF MARKETING/NATIONAL PUBLICITY AND PROMOTION AT UNIVERSAL PICTURES A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC 9304080160 930408 WHO'S NEWS CELLULAR PRODUCTS INC CELLULAR PRODUCTS INC BUFFALO NY BERT C DEL VILLANO 49 YEARS OLD WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR HE WAS PREVIOUSLY A CONSULTANT TO THE COMPANY HE SUCCEEDS RICHARD A MONTAGNA 44 THE COMPANY'S COFOUNDER WHO RESIGNED TUESDAY TO START A CONSULTING FIRM 9304080159 930408 WHO'S NEWS PACIFICARE HEALTH SYSTEMS INC PACIFICARE HEALTH SYSTEMS INC CYPRESS CALIF THREE SENIOR VICE PRESIDENTS WERE PROMOTED TO EXECUTIVE VICE PRESIDENTS OF THE PARENT COMPANY ALL NEW POSITIONS WITH THIS MANAGED HEALTHCARE CONCERN THEY ARE RICHARD LIPELES 39 YEARS OLD WHO ALSO HAD HELD THE TITLE OF PRESIDENT OF THE COMPANY'S PACIFICARE OF CALIFORNIA SUBSIDIARY WAYNE LOWELL 37 WHO CONTINUES AS CHIEF FINANCIAL OFFICER OF THE PARENT AND ROGER TAYLOR 46 WHO REMAINS CHIEF MEDICAL OFFICER JEFF FOLICK 45 WHO HAD BEEN PACIFICARE'S EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER TAKES MR LIPELES'S TITLE AS THE UNIT'S PRESIDENT 9304080158 930408 WHO'S NEWS SMART VALLEY INC SMART VALLEY INC SAN JOSE CALIF JOHN YOUNG FORMER CHIEF EXECUTIVE OFFICER OF HEWLETTPACKARD CO WAS NAMED CHAIRMAN OF SMART VALLEY A NONPROFIT CORPORATION BASED IN THE SILICON VALLEY FORMED BY A COALITION OF BUSINESS AND CIVIC LEADERS SMART VALLEY PLANS TO DEVELOP A DATA COMMUNICATIONS NETWORK LINKING COMPANIES GOVERNMENT SCHOOLS HOSPITALS AND SOCIAL SERVICES AGENCIES 9304080157 930408 DSP TECHNOLOGY'S FORECAST FREMONT CALIF DSP TECHNOLOGY INC SAID CONTRACTS THAT WERE SIGNED LATER THAN EXPECTED MADE FISCAL FIRSTQUARTER RESULTS UNCERTAIN BUT THAT IT IS EXPECTING TO BREAK EVEN FOR THE PERIOD ENDING APRIL 30 A YEAR EARLIER THE MAKER OF COMPUTER INSTRUMENTS REPORTED NET INCOME OF 165000 OR 8 CENTS A SHARE ON REVENUE OF 25 MILLION 9304080156 930408 EATERIES INC REPORTS SALES UP OKLAHOMA CITY EATERIES INC SAID SAMESTORE SALES AT ITS GARFIELD'S RESTAURANTS CHAIN ROSE 81 FOR THE FIRST QUARTER OF 1993 TOTAL SALES INCREASED 60 TO 56 MILLION FROM 35 MILLION A YEAR AGO 9304080155 930408 IMPORTED CARS IN JAPAN TOKYO SALES OF IMPORTED CARS TRUCKS AND BUSES IN JAPAN INCREASED 32 IN MARCH FROM THE YEAREARLIER MONTH TO 22977 UNITS THE JAPAN AUTOMOBILE IMPORTERS' ASSOCIATION REPORTED MARCH'S GAIN CAME AFTER AN 11 RISE IN FEBRUARY THE FIRST YEARONYEAR RISE IN FIVE MONTHS IN MARCH OVERALL JAPANESE VEHICLE SALES WERE UP 17 ON YEAR THE FIRST GAIN IN NINE MONTHS AS IN RECENT MONTHS THE RISE WAS LED BY INCREASED IMPORTS BY JAPANESE MAKERS FROM THEIR US PLANTS AND A SHARP SALES INCREASE OF GENERAL MOTORS CORP'S ADAM OPEL AG OF GERMANY SINCE JAPAN'S BIGGEST IMPORTEDCAR DEALER YANASE CO BEGAN MARKETING THE VEHICLES FORD MOTOR CO AND CHRYSLER CORP INCREASED SALES THOUGH THE LEVEL IS STILL RELATIVELY LOW 9304080154 930408 INTERNATIONAL GERMAN STEEL OUTPUT DECLINES FRANKFURT IN THE FIRST QUARTER OF 1993 GERMANY PRODUCED NINE MILLION TONS OF RAW STEEL DOWN 152 FROM THE SAME PERIOD A YEAR AGO THE FEDERAL STATISTICS OFFICE SAID IN MARCH GERMANY'S RAW STEEL OUTPUT WAS 327 MILLION TONS DOWN 113 ON THE YEAR THE AGENCY SAID IT DIDN'T PROVIDE COMPARATIVE FIGURES WESTERN GERMANY PRODUCED 826 MILLION TONS OF RAW STEEL IN 1993'S FIRST QUARTER DOWN 168 FROM THE YEARAGO QUARTER IN MARCH THE REGION'S OUTPUT WAS 299 MILLION TONS DOWN 134 FROM A YEAR AGO 9304080153 930408 SAFECARD SERVICES INC CHEYENNE WYO SAFECARD SERVICES INC SAID IT ACQUIRED ABOUT 16 MILLION OF ITS COMMON SHARES FROM STEVEN J HALMOS THE COMPANY'S COFOUNDER AND FORMER CHIEF EXECUTIVE OFFICER FOR 189 MILLION THE COMPANY WHICH NOTIFIES CREDITCARD ISSUERS ABOUT LOST OR STOLEN CARDS SAID IT PAID 1150 A SHARE FOR MR HALMOS'S 625 STAKE AS PART OF A PROGRAM TO BUY BACK FOUR MILLION SHARES THE STOCK TRANSACTION WAS PART OF A CONSULTING AND NONCOMPETE AGREEMENT THAT ALSO WILL PAY MR HALMOS 10 MILLION OVER FIVE YEARS 9304080152 930408 INTERNATIONAL VIRGIN TO ACQUIRE NEW AIRBUS PLANES FOR 455 MILLION BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL VIRGIN ATLANTIC AIRWAYS SHUNNED ITS LONGTIME AIRCRAFT SUPPLIER BOEING CO TO ACQUIRE FOUR AIRBUS INDUSTRIE JETS FOR MORE THAN 300 MILLION 455 MILLION VIRGIN A UNIT OF VIRGIN GROUP LTD BECOMES THE FIRST BRITISH AIRLINE TO CHOOSE AIRBUS'S NEW A340 VIRGIN IS LEASING THE JETLINERS FROM A BANKING CONSORTIUM WHICH BOUGHT THE AIRCRAFT FROM AIRBUS AND GRANTED THE AIRLINE AN OPTION TO PURCHASE THEM AT ANY TIME AIRBUS WHICH HASN'T MADE TOO MANY INROADS INTO BRITAIN WAS VIRTUALLY ASSURED OF A SALE FROM THE OUTSET WE WEREN'T REALLY LOOKING AT ANY OTHER AIRCRAFT A VIRGIN SPOKESMAN SAID THE A340 IS PERFECT FOR THE KIND OF LONG THIN ROUTES WE PLAN TO FLY VIRGIN'S STRATEGY IN BUYING THE MEDIUMCAPACITY LONGRANGE A340 IS TO DEVELOP NEW ROUTES AND TO SERVE THOSE ROUTES HURT BY RECESSION NEXT YEAR FOR EXAMPLE VIRGIN PLANS TO START LONDONSAN FRANCISCO FLIGHTS AND THE A340 WILL BE USED TO TEST THE MARKET RATHER THAN THE LARGER 747 VIRGIN WILL TAKE DELIVERY OF THE FIRST A340 IN OCTOBER AND CONFIGURE THE INTERIOR TO ACCOMMODATE 292 PASSENGERS VIRGIN ISN'T ABANDONING ITS RELATIONSHIP WITH BOEING THE SMALL BRITISH AIRLINE IS EXPECTED IN THE NEXT MONTHS TO ORDER FOUR MORE BOEING 747 JETLINERS AND INDUSTRY SOURCES SAY VIRGIN IS IN TALKS TO BUY BOEING'S NEWEST AIRCRAFT THE 777 MODEL WHICH IS SCHEDULED TO GO INTO SERVICE IN 1995 AIRBUS IS A CONSORTIUM OF BRITISH AEROSPACE PLC AEROSPATIALE SA OF FRANCE DAIMLERBENZ AG UNIT DEUTSCHE AEROSPACE AIRBUS OF GERMANY AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN A SPOKESMAN FOR SEATTLEBASED BOEING DECLINED TO COMMENT ON THE TRANSACTION BUT SAID WE ARE IN THE MIDST OF TALKING TO VIRGIN NOW ABOUT HOW WE CAN MEET FUTURE NEEDS 9304080151 930408 INTERNATIONAL FIAT OFFICER FACES WARRANT FOR ARREST IN BRIBERY PROBE BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN ITALY'S CORRUPTION SCANDAL CUT DEEPER INTO FIAT SPA'S UPPER MANAGEMENT WHEN MILAN PROSECUTORS ISSUED AN ARREST WARRANT FOR GIORGIO GARUZZO GENERAL MANAGER AND CHIEF OPERATING OFFICER OF THE TURIN AUTO MAKER MILAN PROSECUTORS ISSUED THE WARRANT IN CONNECTION WITH MR GARUZZO'S INVOLVEMENT IN BRIBES ALLEGEDLY PAID BY IVECO NV FIAT'S COMMERCIAL VEHICLES SUBSIDIARY FOR A CONTRACT TO SUPPLY BUSES TO THE CITY OF MILAN MR GARUZZO WHO IS THE FIFTH SENIOR EXECUTIVE AT FIAT TO BE IMPLICATED IN THE SCANDAL WAS IVECO'S FORMER CHIEF EXECUTIVE OFFICER THE ARREST HADN'T BEEN MADE LATE YESTERDAY BECAUSE MR GARUZZO WAS ABROAD ON A BUSINESS TRIP A FIAT SPOKESMAN CONFIRMED THAT MR GARUZZO WAS OUT OF ITALY AND SAID THE COMPANY HAD NO FURTHER COMMENT MAGISTRATES HAVE BEEN INVESTIGATING THE IVECO CASE FOR SEVERAL WEEKS LAST WEEK THEY PUT RICCARDO RUGGERI CHIEF EXECUTIVE OF NEW HOLLAND FIAT'S EARTHMOVINGEQUIPMENT UNIT UNDER HOUSE ARREST FOR HIS ALLEGED INVOLVEMENT IN THE MILAN BUS CONTRACT DEAL INVESTIGATORS CHARGED THAT MR RUGGERI A FORMER IVECO COMMERCIAL DIRECTOR WAS AWARE THAT IVECO HAD PAID KICKBACKS ON THE BUS CONTRACT TO POLITICAL PARTIES THROUGH A SWISS BANK ACCOUNT MILAN MAGISTRATES HAVE MAINTAINED THAT FIAT OPERATED A SYSTEM OF USING FOREIGN UNITS TO PAY ILLEGAL FUNDS TO ITALIAN POLITICAL PARTIES THROUGH SWISS BANK ACCOUNTS IN RETURN FOR CONTRACTS FIAT HAS DENIED THE EXISTENCE OF THE SLUSH FUNDS IN ADDITION TO MESSRS GARUZZO AND RUGGERI THE OTHER FIAT EXECUTIVES IMPLICATED IN THE SCANDAL INCLUDE FRANCESCO PAOLO MATTIOLI FIAT'S CHIEF FINANCIAL OFFICER WHO IS UNDER HOUSE ARREST AND ANTONIO MOSCONI PRESIDENT OF FIAT'S INSURANCE GROUP TORO ASSICURAZIONI SPA WHO IS IN JAIL ON CORRUPTION CHARGES MAGISTRATES ALSO HAVE ISSUED A WARRANT FOR THE ARREST OF MAURO BERTINI MANAGING DIRECTOR OF FIAT AVIO THE COMPANY'S AUTO TURBINE UNIT MR BERTINI HASN'T RETURNED TO ITALY SINCE THE WARRANT WAS ISSUED LAST WEEK MORE THAN 2600 ITALIAN POLITICIANS AND BUSINESSMEN HAVE BEEN ARRESTED OR PLACED UNDER INVESTIGATION SINCE FEBRUARY 1992 WHEN AN EXPANSIVE SCANDAL BEGAN TO UNFOLD MAINLY INVOLVING KICKBACKS AND POLITICAL CONTRIBUTIONS 9304080150 930408 SCOTTS SAYS SALES INCREASE MARYSVILLE OHIO SCOTTS CO SAID IT EXPECTS TO REPORT SALES FOR ITS FISCAL SECOND QUARTER WHICH ENDED MARCH 31 OF 1609 MILLION UP 67 FROM 1505 MILLION IN THE YEARAGO PERIOD THE COMPANY WHICH MANUFACTURES AND SELLS DOITYOURSELF LAWNCARE KITS SAID BAD WEATHER IN MARCH DELAYED SOME SHIPMENTS HOLDING THE SALES GROWTH PERCENTAGE BELOW DOUBLE DIGITS SALES FOR THE FISCAL YEAR WHICH ENDS SEPT 30 WILL RISE 12 TO 15 FROM LAST YEAR'S SALES OF 4128 MILLION SCOTTS SAID EXCLUDING SALES FROM REPUBLIC TOOL & MANUFACTURING WHICH SCOTTS ACQUIRED IN NOVEMBER SALES OF BASIC SCOTTS/HYPONEX PRODUCTS WERE UP ABOUT 1 IN THE SECOND QUARTER SCOTTS EXPECTS TO REPORT EARNINGS ON MAY 12 9304080149 930408 TECHNOLOGY FUJITSU UK UNIT ICL REPORTS DECLINE OF 38 IN 1992 PRETAX PROFIT LONDON ICL PLC FUJITSU LTD'S ONCEPROSPEROUS BRITISH UNIT REPORTED A 38 DROP IN PRETAX PROFIT FOR LAST YEAR AND ITS CHIEF EXECUTIVE SAYS THIS YEAR PROBABLY WON'T BE ANY BETTER AFTER A PAINFUL REORGANIZATION IN THE EARLY 1980S ICL FOR MOST OF THE PAST DECADE WAS THE ONLY BIG EUROPEAN COMPUTER HARDWARE MANUFACTURER TO POST STEADY PROFIT INCREASES IN 1991 THE YEAR AFTER JAPAN'S FUJITSU BOUGHT AN 80 STAKE IT BROKE ITS WINNING STREAK WITH A PROFIT DROP NOW IT HAS ANNOUNCED YET ANOTHER FALL FOR 1992 A 38 DROP IN PRETAX PROFIT TO 386 MILLION 585 MILLION FROM 624 MILLION IN 1991 NET INCOME FELL 36 TO 263 MILLION FROM 411 MILLION AMONG ICL'S PROBLEMS ACCORDING TO CHIEF EXECUTIVE PETER BONFIELD SPEAKING AT A LONDON NEWS BRIEFING PRICECUTTING IN PERSONAL COMPUTERS A 2 TO 3 DROP IN MAINFRAME COMPUTER SALES AND LOSSES ON ONE OF THE COMPANY'S MOST IMPORTANT BUSINESS LINES COMPUTERS BASED ON THE INDUSTRYSTANDARD UNIX SOFTWARE SYSTEM NEVERTHELESS ICL'S REVENUES FOR 1992 STILL JUMPED 32 TO 248 BILLION FROM 188 BILLION IN 1991 MUCH OF THAT GROWTH CAME FROM ACQUISITIONS AFTER FACTORING THEM OUT MR BONFIELD SAID ICL'S UNDERLYING REVENUE GROWTH WAS 4 TO 5 THE OUTLOOK FOR THIS YEAR ISN'T BRIGHT ICL'S PERFORMANCE WILL BE ABOUT THE SAME AS IN 1992 MR BONFIELD SAID THAT COMPLICATES ICL'S PLANS EVENTUALLY TO SEEK A LONDON STOCK EXCHANGE LISTING WHEN FUJITSU ACQUIRED ITS 80 ICL STAKE ON NOV 30 1990 IT SAID IT PLANNED TO RESELL SOME OF ITS SHARES ON THE OPEN MARKET WITHIN FIVE YEARS ASIDE FROM BEING A POTENTIALLY GOOD FINANCIAL MOVE FOR FUJITSU IT WAS A POLITICALLY IMPORTANT SIGNAL THAT ICL WILL MAINTAIN SOME INDEPENDENCE FROM ITS JAPANESE PARENT A SENSITIVE ISSUE IN THE EUROPEAN COMMUNITY WHERE THE PURCHASE WAS INITIALLY DECRIED BY SOME POLITICIANS AS A SELLOUT TO JAPAN BUT AFTER THE RELEASE OF THE LATEST RESULTS THE TIMING OF THE STOCK SALE OR FLOTATION APPEARED TO BE BECOMING MORE VAGUE THOUGH MR BONFIELD SAID THERE HASN'T BEEN ANY SLIPPAGE ON THE DATE OR ANY CHANGE OF HEART BY FUJITSU HE SAID THE UNPREDICTABILITY OF THE STOCK AND COMPUTER MARKETS MAKE IT IMPOSSIBLE TO BE MORE PRECISE ABOUT WHEN THE SALE WILL TAKE PLACE THAN THE MID1990S HE ADDED IF WE DON'T FLOAT WE DON'T FLOAT IT ISN'T THE BEALL AND ENDALL OF ICL 9304080148 930408 GM'S HUGHES SAID TO SEEK MCDONNELL MISSILE BUSINESS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL THE HUGHES AIRCRAFT CO UNIT OF GENERAL MOTORS CORP HAS DISCUSSED A POTENTIAL PURCHASE OF MCDONNELL DOUGLAS CORP'S MISSILE BUSINESS ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS HOWEVER IT REMAINS UNCLEAR WHETHER THE DISCUSSIONS WILL PROGRESS HUGHES LOS ANGELES EXPANDED IN THE MISSILE BUSINESS LAST YEAR WITH ITS 450 MILLION PURCHASE OF GENERAL DYNAMICS CORP'S MISSILE OPERATIONS HUGHES COMPETES WITH MCDONNELL DOUGLAS FOR SALES OF SOME MISSILES SUCH AS THE SEALAUNCHED TOMAHAWK CRUISE MISSILE THE MISSILE OPERATION OF ST LOUISBASED MCDONNELL DOUGLAS WHICH ALSO MAKES HARPOON ANTISHIP MISSILES HAS BEEN VALUED BY SOME ANALYSTS AT 400 MILLION TO 500 MILLION PRECISE SALES AND OPERATING RETURNS FOR THE MISSILE DIVISION AREN'T REPORTED BY THE COMPANY WHICH INCORPORATES THOSE FIGURES INTO RESULTS FOR A LARGER MISSILES SPACE AND ELECTRONICS GROUP THAT GROUP HAD 1992 OPERATING PROFIT OF 197 MILLION ON REVENUE OF 31 BILLION MCDONNELL DOUGLAS HAS SAID IT PLANS ON DIVESTITURES TO RAISE ABOUT 500 MILLION FOR USE IN CUTTING 1 BILLION FROM ITS DEBT THIS YEAR IT HAS BEEN UNSUCCESSFUL IN EFFORTS TO FIND A BUYER OR JOINTVENTURE PARTNER FOR ITS HELICOPTER OPERATIONS A LOS ANGELES TIMES ARTICLE CITED AN UNIDENTIFIED INVESTMENT INDUSTRY OFFICIAL AS SAYING POTENTIAL BUYERS FOR THE MISSILE BUSINESS INCLUDE HUGHES MARTIN MARIETTA CORP AND RAYTHEON CORP SPOKESMEN FOR RAYTHEON AND MARTIN MARIETTA SAID THEY DON'T COMMENT ON SUCH REPORTS ALTHOUGH ONE PERSON FAMILIAR WITH THE MATTER SAID MARTIN MARIETTA ISN'T INTERESTED SEPARATELY MCDONNELL DOUGLAS SAID ITS FIRSTQUARTER FINANCIAL RESULTS TO BE ANNOUNCED THIS MONTH WILL INCLUDE AN AFTERTAX GAIN OF 122 MILLION OR 310 A SHARE FROM THE SALE OF AN INFORMATIONSYSTEMS DIVISION AND RESOLUTION OF SEVERAL OUTSTANDING MATTERS WITH THE INTERNAL REVENUE SERVICE 9304080147 930408 L'OREAL 1992 PROFIT ROSE 14 PARIS L'OREAL SA THE FRENCH BEAUTY PRODUCTS PERFUMES AND PHARMACEUTICALS GROUP SAID ITS CONSOLIDATED PROFIT BEFORE CAPITAL GAINS AND AFTER MINORITY INTERESTS ROSE 14 LAST YEAR TO 23 BILLION FRANCS 4213 MILLION FROM 202 BILLION FRANCS A YEAR BEFORE THE NET DIVIDEND WAS RAISED 14 TO 96 FRANCS 176 A SHARE FROM 84 FRANCS L'OREAL PREVIOUSLY REPORTED THAT 1992 SALES ROSE 12 TO 3757 BILLION FRANCS 9304080146 930408 MCI GETS CHICAGO FED CONTRACT WASHINGTON MCI COMMUNICATIONS CORP SAID IT RECEIVED A 10YEAR MULTIMILLIONDOLLAR CONTRACT FROM THE FEDERAL RESERVE BANK OF CHICAGO TO PROVIDE CIRCUITS FOR A NATIONWIDE DATA COMMUNICATIONS NETWORK TERMS WEREN'T DISCLOSED THE NEW FEDNET SYSTEM WILL COMBINE THE NETWORKS OF THE 12 FEDERAL RESERVE DISTRICT BANKS AND OTHER CENTERS INTO ONE NETWORK MC SAID THE COMPANY PROVIDES TELECOMMUNICATIONS SERVICES INCLUDING LONGDISTANCE SERVICE 9304080145 930408 F&C INTERNATIONAL SEEKS NEW COLLATERAL FOR ITS LOAN ACCORDS CINCINNATI F&C INTERNATIONAL INC WHICH DISCLOSED INVENTORY DISCREPANCIES AND FIRED ITS CHAIRMAN LAST WEEK SAID IT'S SEARCHING FOR NEW COLLATERAL TO MAINTAIN ITS CREDIT AGREEMENTS WITH ITS PRIMARY LENDER THE FLAVOR AND FRAGRANCE MAKER HAS A 16 MILLION REVOLVING CREDIT FACILITY WITH STAR BANC CORP THE FACILITY WAS BACKED BY ASSETS INCLUDING F&C'S INVENTORIES BUT NOW THOSE ASSETS APPEAR TO BE OVERVALUED IN AN INTERVIEW F&C'S CHIEF EXECUTIVE OFFICER AND PRESIDENT FLETCHER ANDERSON SAID THE BOARD IS TRYING TO FIND OTHER WAYS TO MAKE THE BANK COMFORTABLE WITH OUR CREDIT DIRECTORS HELD AN EMERGENCY BOARD MEETING TUESDAY NIGHT IN A RELATED MATTER A CLASSACTION SHAREHOLDER LAWSUIT THAT WAS FILED IN NOVEMBER AGAINST F&C WAS AMENDED TO INCLUDE ANYONE WHO BOUGHT COMPANY STOCK FROM THE TIME IT WENT PUBLIC UNTIL FRIDAY WHEN IT DISCLOSED ITS INVENTORY PROBLEMS SEPARATELY A PERSON CLOSE TO THE F&C SAID THE COMPANY RECENTLY DISMISSED PAINEWEBBER INC THE AGENT IT RETAINED TO SELL ITS FRAGRANCE DIVISION WHICH F&C SAYS WAS NOT AFFECTED BY THE INVENTORY DISCREPANCIES THE MOVE IS SEEN AS A SIGN THAT F&C HAS FOUND A BUYER FOR THE DIVISON ON ITS OWN PROCEEDS FROM SUCH A SALE COULD BE REPLACE THE COLLATERAL ON F&C'S CREDIT LINE OFFICIALS AT PAINEWEBBER A UNIT OF PAINEWEBBER GROUP INC COULD NOT BE REACHED TO COMMENT MR ANDERSON COULD NOT BE REACHED TO COMMENT ON THE POSSIBLE SALE OF THE FRAGRANCE DIVISION ON MONDAY F&C SUED ITS DEPOSED CHAIRMAN JON P FRIES ALLEGING THAT HE FORMED A MARGIN INCREASE TEAM TO MANIPULATE INVENTORY AND SALES FIGURES THEREBY INFLATING PROFITS AND HIS OWN COMPENSATION MR FRIES COULD NOT BE REACHED YESTERDAY CALLS TO HIS HOME TELEPHONE NUMBER ARE BEING TAKEN BY AN ANSWERING SERVICE 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 9304080144 930408 TOKYO WARNS OF VERTIGO FROM NEWFOUND HEIGHTS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN MAY BE ENJOYING TOO MUCH OF A GOOD THING JAPAN'S FINANCIAL AUTHORITIES WHO FOR MONTHS NURSED THE COUNTRY'S AILING STOCK MARKET ARE SUDDENLY CONCERNED THAT THE CURRENT BIG RALLY IN SHARE PRICES MAY BE DANGEROUS FOR THE NATION'S ECONOMY JAPAN'S CENTRAL BANK GOVERNOR AND OFFICIALS AT THE MINISTRY OF FINANCE SAY THEY FEAR THAT THE NIKKEI STOCK AVERAGE WHICH WEDNESDAY BRIEFLY TOPPED THE 20000 LEVEL FOR THE FIRST TIME IN MORE THAN A YEAR MAY HAVE RISEN HIGHER THAN WARRANTED BY JAPAN'S REAL ECONOMIC PROSPECTS THE RECENT GLEE THEY ADD COULD LEAD TO A STOMACHTURNING MARKET REVERSAL THEY ALSO WORRY THAT JAPANESE COMPANIES MAY TAKE THE MARKET RECOVERY AS A VOTE OF CONFIDENCE IN THE NATION'S STATUS QUO AND CANCEL MUCHNEEDED BUT PAINFUL CORPORATE RESTRUCTURING EFFORTS EFFORTS NECESSITATED BY JAPAN'S SEVERE ECONOMIC SLUMP AT A MEETING WEDNESDAY BETWEEN HIGH GOVERNMENT OFFICIALS AND JAPANESE CHIEF EXECUTIVES BANK OF JAPAN GOVERNOR YASUSHI MIENO EXPRESSED CAUTION ABOUT THE MARKET'S NEWFOUND BULLISHNESS MR MIENO SAID THE RALLY IS HELPING THOSE COMPANIES THAT HOLD BIG STOCK PORTFOLIOS AND HAS GENERALLY BRIGHTENED THE CORPORATE MOOD IN JAPAN BUT ACCORDING TO A PARTICIPANT AT THE MEETING MR MIENO ADDED IF YOU GET TOO GIDDY ABOUT THE MARKET THERE'S THE DANGER OF A SHARP DOWNFALL OTHER CENTRALBANK OFFICIALS SAID THEY THOUGHT THE MARKET WAS ALREADY OVERVALUED ACCORDING TO THE EXECUTIVE THE CURRENT ESTIMATED PRICEEARNINGS RATIO OF THE NIKKEI IS ABOUT 70 NEAR THE LEVEL WHEN THE NIKKEI PEAKED AT 3891587 IN 1989 THE NIKKEI CLOSED WEDNESDAY AT 1982923 UP 34243 POINTS OR 18 VOLUME WAS ESTIMATED AT A BULLISH 850 MILLION SHARES DURING THE PAST MONTH THE NIKKEI HAS GAINED 19 IT ISN'T CLEAR WHETHER REGULATORS ARE WORRIED ENOUGH THAT THEY WOULD CONSIDER MEASURES TO CURB TRADING IN TOKYO SUCH AS RAISING INTEREST RATES OR INTRODUCING NEW MARKET REGULATIONS MR MIENO'S CENTRAL BANK HELPED PRECIPITATE THE PLUNGE IN JAPANESE SHARE PRICES WHICH STARTED IN 1990 BY RAISING INTEREST RATES TRADERS IN TOKYO SAID THEY'D LOOK FOR ACTION NOT WORDS FROM THE CENTRAL BANK BEFORE THEY QUIT THEIR RALLY IF YOU LOOK AT SHORTTERM INTEREST RATES THE BANK IS NOT CHANGING ITS STYLE SAYS OSAMU YASAKA DEPUTY GENERAL MANAGER OF EQUITIES AT NIKKO SECURITIES CO HE EXPECTS THE NIKKEI TO HIT 21000 WITHIN A FEW WEEKS HELPED BY JAPAN'S LOW SHORTTERM INTEREST RATES CURRENTLY 301 BUT EVEN SOME OF THE BIGGEST BULLS IN THE MARKET CONCEDE THE REGULATORS MAY HAVE A POINT WHEN THEY SAY THE RALLY COULD MAKE JAPANESE COMPANIES LAX THERE'S A RISK THAT AFTER A MARKET RECOVERY SOME COMPANIES WILL QUIT RESTRUCTURING SAYS NOMURA SECURITIES CO STRATEGIST CHISATO HAGANUMA MR HAGANUMA ADDRESSING A SEMINAR FOR FOREIGN REPORTERS THAT NOMURA CALLED TO SQUELCH DOUBTS ABOUT THE TOKYO RALLY PREDICTED THE NIKKEI WILL CROSS 21000 IN THE NEAR TERM THE GOVERNMENT'S SUDDEN CONCERN ABOUT THE RALLY IS STRIKING BETWEEN AUGUST AND MARCH THE AUTHORITIES PROPPED UP STOCK PRICES BY INVESTING VAST SUMS OF GOVERNMENTCONTROLLED MONEY IN THE MARKET AND URGING JAPANESE INSTITUTIONS NOT TO SELL SHARES NOW THAT THE RALLY HAS TAKEN ON A LIFE OF ITS OWN SOME ANALYSTS SAY THE FINANCE MINISTRY IS QUIZZING THEM ABOUT THE REASONS FOR THE REBOUND BUREAUCRATS ARE PANICKING SAYS A FINANCIAL RESEARCHER AT ONE LARGE FOREIGN SECURITIES FIRM THEY'RE AFRAID ALL THE BUYING IS COMING FROM FOREIGNERS WHOM THEY CAN'T CONTROL AND THE FOREIGNERS WILL SELL OUT ON THEM AT ANY MINUTE THROUGH MARCH 26 FOREIGN INVESTORS PURCHASED MORE THAN 420 BILLION YEN 368 BILLION NET OF JAPANESE STOCKS BY COMPARISON JAPANESE SECURITIES COMPANIES PURCHASED JUST 10 BILLION YEN NET OF JAPANESE STOCK IN THE SAME PERIOD ANALYSTS SAY MOST OF THE RECENT BUYING IN TOKYO HAS BEEN BY INTERNATIONAL FUND MANAGERS PARTICULARLY INVESTORS WHO ALLOCATE THEIR ASSETS ACCORDING TO THE RELATIVE SIZE OF DIFFERENT NATIONAL STOCK MARKETS BY MOST MODELS TOKYO SHOULD RECEIVE 25 OR MORE OF AN INTERNATIONAL ASSET ALLOCATION BUT UNTIL RECENTLY SKEPTICAL MONEY MANAGERS HAVE BEEN PUTTING FAR LESS THAN 25 OF THEIR FUNDS IN JAPANESE STOCKS IF THEY JUST RAISE THEIR TOKYO INVESTMENTS TO NORMAL ALLOCATION LEVELS ANALYSTS SAY THE MARKET COULD CONTINUE TO RISE WE NOW HAVE A SITUATION WHERE ASSET ALLOCATORS AROUND THE WORLD RUN THE SHOW IN TOKYO SAYS ALAN LIVSEY ANALYST AT KLEINWORT BENSON INTERNATIONAL INC HE SAYS HE THINKS MANAGERS' REALLOCATION OF FUNDS TO JAPAN WILL TAKE THE MARKET TO 21500 OR 22000 WHEN THEY FINISH IT'LL FLAME OUT 9304080143 930408 GM PUTS KEY EXECUTIVES UNDER CONTRACT FOR FIRST TIME AFTER LOPEZ DEFECTION BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STUNG BY THE LOSS OF ITS TOP PURCHASING BOSS TO RIVAL VOLKSWAGEN AG GENERAL MOTORS CORP HAS FOR THE FIRST TIME PUT KEY EXECUTIVES UNDER CONTRACT WITH NONCOMPETE CLAUSES THAT ARE UNIQUE AMONG US AUTO MAKERS THE MOVE TO MAKE LEGALLY ENFORCEABLE GM'S TRADITIONAL EXECUTIVE HONOR CODE COMES TOO LATE TO LIMIT THE POTENTIAL DAMAGE FROM THE DEFECTION TO VW LAST MONTH OF J IGNACIO LOPEZ DE ARRIORTUA MR LOPEZ WAS ONE OF GM PRESIDENT JOHN F SMITH JR'S CLOSEST AIDES AND THE LEADER OF AN AGGRESSIVE CAMPAIGN TO SLASH GM'S 50 BILLION PURCHASING BUDGET NOW GM CHARGES THAT HE IS LEADING WHOLESALE RAIDS ON GM EUROPE'S PERSONNEL THE ONEPAGE COMPENSATION AGREEMENTS WERE APPROVED BY GM'S BOARD MONDAY AND GM OFFICIALS SAID YESTERDAY THAT MANY OF THE COMPANY'S EXECUTIVES AND MANAGERS WILL BE ASKED TO SIGN THEM ALREADY UNDER CONTRACT ARE GM'S TOP FIVE EXECUTIVES AND SEVERAL EXECUTIVES IN GM EUROPE'S PURCHASING OPERATIONS THE NONCOMPETE CLAUSES WOULD PROHIBIT GM EXECUTIVES FROM GOING TO WORK FOR A RIVAL FOR THREE YEARS AFTER SIGNING THE AGREEMENT EACH TIME AN EXECUTIVE GETS A PAY INCREASE HE WILL SIGN A NEW CONTRACT INCLUDING A NEW THREEYEAR BAN ON WORKING FOR A COMPETITOR THE CONTRACTS ALSO WILL GIVE GM FLEXIBILITY TO RAISE SALARIES IN THE FACE OF COMPETITIVE OFFERS LIKE THE ONES VW HAS MADE MR SMITH DISCLOSED THE UNUSUAL EFFORT TO SHORE UP MANAGEMENT LOYALTY IN REMARKS TO REPORTERS AT A NEW YORK AUTO SHOW PRESS BREAKFAST YESTERDAY THE EVENT COINCIDED WITH THE FIRST ANNIVERSARY OF MR SMITH'S FIRST FULL DAY AS GM'S PRESIDENT GM'S BOARD NAMED MR SMITH 55 YEARS OLD PRESIDENT ON APRIL 6 1992 IN THE FIRST OF TWO MANAGEMENT SHAKEUPS LAST YEAR GM'S DIRECTORS GAVE MR SMITH A MANDATE TO RESTORE GM'S NORTH AMERICAN OPERATIONS TO PROFITABILITY STARTING WITH A BREAKEVEN PERFORMANCE ON OPERATIONS THIS YEAR MR SMITH INDICATED HE'S PLEASED WITH THE PROGRESS TOWARD THAT GOAL IN THE JANUARYTOMARCH PERIOD IT'S GOING TO BE A GOOD QUARTER HE SAID WITHOUT ELABORATING GM'S US SALES IN MARCH OUTPERFORMED THE COMPANY'S EXPECTATIONS MR SMITH SAID ADDING WE HAVEN'T DONE THAT FOR A WHILE MR SMITH SAID GM IS MAKING STRIDES IN ELIMINATING INEFFICIENT PRACTICES AND CITED A PLAN THAT WILL EXTEND PRODUCTION OF THE CURRENT CHEVROLET S10 BLAZER AT A PONTIAC MICH FACTORY WHILE A SECOND PLANT IN OHIO IS RETOOLED FOR A NEW MODEL EARLY NEXT YEAR GM THUS COULD SALVAGE 30000 TO 50000 SALES IT WOULD HAVE LOST USING ITS TRADITIONAL RETOOLING SCHEDULES BUT MR SMITH SAID EUROPEAN VEHICLE SALES ARE FALLING FURTHER THAN EXPECTED AND INDICATED GM EUROPE PLANS TO CUT MORE SALARIED AND HOURLY JOBS IN THE FACE OF THE SLUMP A GM EUROPE SPOKESMAN SAID CUTS ARE EXPECTED TO COME THROUGH ATTRITION MR SMITH'S DISCLOSURE THAT GM IS ASKING SENIOR MANAGERS TO SIGN CONTRACTS CAME IN RESPONSE TO QUESTIONS ABOUT MR LOPEZ AND THE LITIGATION GM HAS INITIATED IN EUROPE TO BLOCK EFFORTS BY VW AND MR LOPEZ TO HIRE AWAY SOME KEY GM EUROPE MANAGERS MR SMITH INDICATED THE CONTRACTS INCLUDE BOTH PAY RAISES AND SPECIFIC PROHIBITIONS AGAINST TAKING CONFIDENTIAL INFORMATION TO RIVALS WE'RE LOOKING AT THE WHOLE PROCESS IN LIGHT OF WHAT HAPPENED WITH MR LOPEZ MR SMITH SAID GM STILL DOESN'T KNOW IF MR LOPEZ TOOK CONFIDENTIAL DOCUMENTS WITH HIM TO VW MR SMITH ADDED THOSE ALREADY COVERED BY THE NEW CONTRACTS INCLUDE GM'S TOP FIVE OFFICERS INCLUDING MR SMITH CHIEF FINANCIAL OFFICER G RICHARD WAGONER WHO THIS WEEK WAS NAMED WORLDWIDE PURCHASING CHIEF LOUIS R HUGHES EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS HARRY J PEARCE EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL AND WILLIAM E HOGLUND EXECUTIVE VICE PRESIDENT AND MR SMITH'S NO 2 MAN IN NORTH AMERICA COLLECTIVELY THIS GROUP IS KNOWN AS THE PRESIDENT'S COUNCIL MR LOPEZ WAS TO JOIN THE PRESIDENT'S COUNCIL LAST MONTH ALONG WITH BECOMING HEAD OF NORTH AMERICAN OPERATIONS INSTEAD HE BOLTED TO VW JUST HOURS BEFORE MR SMITH WAS TO ANNOUNCE HIS PROMOTION SUBSEQUENTLY GM OFFICIALS HAVE SAID THAT JUST DAYS BEFORE HIS DEPARTURE MR LOPEZ ATTENDED A DETAILED REVIEW OF FUTURE PRODUCT AND MARKETING STRATEGIES AT GM'S ADAM OPEL AG UNIT IN GERMANY OPEL IS VOLKSWAGEN'S ARCHRIVAL IN THE EUROPEAN MARKET DESPITE INITIAL ATTEMPTS TO PLAY DOWN THE LOSS IT'S CLEAR GM EXECUTIVES AND THE BOARD ARE ALARMED BY THE IMPLICATIONS OF MR LOPEZ'S DEPARTURE FOR MORALE AND FOR GM'S EUROPEAN OPERATIONS IN THE PAST GM EXECUTIVES OFTEN WERE RELUCTANT TO JUMP SHIP BECAUSE THEY RISKED LOSING ACCUMULATED BONUSES AND OTHER BENEFITS THAT COULD TOTAL HUNDREDS OF THOUSANDS OR EVEN MILLIONS OF DOLLARS BUT GM HASN'T PAID BONUSES TO MOST EXECUTIVES IN THREE YEARS BECAUSE OF ITS POOR PERFORMANCE THIS WAS AIMED AT GETTING STABILITY IN THE EXECUTIVE RANKS MR HOGLUND SAID IN AN INTERVIEW YESTERDAY THE DRIVER HERE IS EXECUTIVE COMPENSATION THE PRACTICE OF SIGNING SENIOR AUTO EXECUTIVES TO CONTRACTS IS NOT WIDESPREAD AMONG THE BIG THREE AT FORD MOTOR CO SENIOR EXECUTIVES DON'T HAVE CONTRACTS BUT COULD FORFEIT SOME OF THEIR LONGTERM BENEFITS IF THEY LEAVE THE COMPANY TO WORK FOR A COMPETITOR CHRYSLER CORP HAS ONLY TWO EXECUTIVES UNDER CONTRACT CHAIRMAN ROBERT EATON AND FORMER CHAIRMAN LEE IACOCCA WHO CONTINUES TO SERVE AS A CONSULTANT HOWEVER A CHRYSLER SPOKESMAN SAID THE AGREEMENTS DON'T CONTAIN NONCOMPETE CLAUSES GM EUROPE MEANWHILE IS BATTLING TO KEEP AS MANY AS 40 SENIOR MANAGERS WHOM MR LOPEZ OR OTHERS HAVE TRIED TO LURE TO VW GM OFFICIALS SAY GM LAST WEEK WON AN ORDER FROM A GERMAN COURT HALTING VW'S PERSONNEL RAIDS OPEL ALSO IS DEMANDING THAT MR LOPEZ CERTIFY IN WRITING THAT HE DIDN'T TAKE CONFIDENTIAL DOCUMENTS ABOUT OPEL'S PLANS TO VW A GM OFFICIAL IN EUROPE SAID THIS WEEK THAT VW HAS REPLIED WITH A LETTER THAT STATED MR LOPEZ HAS DONE NOTHING IMPROPER BUT THE GM OFFICIAL CALLED THE RESPONSE UNSATISFACTORY 9304080142 930408 NASH FINCH TO BUY SUPERMARKETS MINNEAPOLIS NASH FINCH CO AGREED IN PRINCIPLE TO ACQUIRE A 16STORE SUPERMARKET GROUP FROM EASTER ENTERPRISES AND AN EASTER AFFILIATE IT DIDN'T DISCLOSE TERMS OF THE PLANNED PURCHASE CLOSELY HELD EASTER IS BASED IN DES MOINES IOWA 11 OF THE STORES ARE IN IOWA THREE IN ILLINOIS AND TWO IN MISSOURI NASH FINCH IS A FOOD WHOLESALER THAT SUPPLIES PRODUCTS TO SUPERMARKETS AND RETAILERS IN 29 STATES AND ALSO OWNS ABOUT 90 SUPERMARKETS WAREHOUSE STORES AND MASS MERCHANDISE STORES 9304080141 930408 WHO'S NEWS FLEET FINANCIAL NAMES SHEPPARD CHAIRMAN OF FLEET SERVICES UNIT PROVIDENCE RI FLEET FINANCIAL GROUP NAMED DAVID M SHEPPARD 45 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OF ITS FLEET SERVICES CORP UNIT SUCCEEDING MICHAEL R ZUCCHINI WHO WAS RECENTLY PROMOTED TO VICE CHAIRMAN OF FLEET FINANCIAL FLEET SERVICES MAINTAINS DATA PROCESSING COMPUTER SYSTEMS AND BACKROOM OPERATIONS FOR THE FINANCIAL HOLDING CONCERN'S BANKING AND INVESTMENT COMPANIES ROBERT P DRUM 49 WAS NAMED PRESIDENT OF THE UNIT ALSO SUCCEEDING MR ZUCCHINI IN ADDITION THE COMPANY SAID MICHAEL C NOBLE 40 EXECUTIVE VICE PRESIDENT OF FLEET SERVICES WILL TRANSFER TO FLEET'S CORPORATE ADMINISTRATION WHERE HE WILL DIRECT QUALITY MANAGEMENT INITIATIVES PROCESS ENGINEERING AND QUALITY ASSURANCE AS AN EXECUTIVE VICE PRESIDENT MESSRS SHEPPARD AND DRUM WERE PREVIOUSLY EXECUTIVE VICE PRESIDENTS OF THE UNIT FLEET SAID THE CHANGES REPRESENT A STREAMLINING OF MANAGEMENT 9304080140 930408 LECHTERS SAMESTORE SALES FALL HARRISON NJ LECHTERS INC SAID SALES AT STORES OPEN AT LEAST A YEAR FELL 22 IN THE MONTH ENDED APRIL 3 WHILE TOTAL SALES ROSE 21 TO 248 MILLION FROM 205 MILLION THE HOUSEWARE RETAILER SAID COMPARABLESTORE SALES DECREASED 11 IN THE NINE WEEKS ENDING APRIL 3 WHILE TOTAL SALES ROSE 24 TO 446 MILLION FROM 361 MILLION LECHTERS CURRENTLY HAS 517 STORES COMPARED WITH 449 STORES AT MARCH 28 1992 9304080139 930408 YOUR MONEY MATTERS THE FIRST ROLLOVERS OF SPRING BRING ADVICE ON DIVERSIFICATION BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL DECISION TIME IS HERE THIS MONTH INVESTORS MUST DECIDE HOW TO REINVEST A TROVE OF MATURING CERTIFICATES OF DEPOSIT ESTIMATED BY SOME TO TOTAL 110 BILLION FOR ANYONE RELYING ON THAT MONEY FOR AN EMERGENCY OR TO PAY A BILL COMING DUE SOON THE DECISION IS PROBABLY SIMPLE IF UNAPPEALING PLAY IT SAFE BY ROLLING THE MONEY INTO A NEW CD A MONEYMARKET FUND OR A TREASURY BILL WITH SHORTTERM YIELDS AROUND 3 OR LESS YOU MAY NOT BEAT INFLATION BUT YOU CAN COUNT ON EVERY PENNY BEING THERE WHEN YOU NEED IT BUT FOR ANYONE WHO DOESN'T NEED THAT MONEY RIGHT AWAY THIS MAY BE A GOOD TIME TO BROADEN YOUR INVESTMENT HORIZON THE BEST STRATEGY INVESTMENT ADVISERS SAY IS TO DIVERSIFY BY SPREADING YOUR MONEY AMONG A WIDE VARIETY OF STOCKS BONDS REAL ESTATE CASH AND OTHER HOLDINGS TRUE YOU'LL HAVE TO EXPECT TO SEE THE VALUE OF YOUR HOLDINGS FLUCTUATE WITH CHANGES IN THE ECONOMY AND MARKET CONDITIONS BUT OVER SEVERAL YEARS YOUR RETURNS SHOULD COMFORTABLY BEAT WHAT YOU WOULD GET FROM STAYING IN CDS ALSO THE UPS AND DOWNS SHOULD BE A LOT SMALLER THAN IF YOU SIMPLY SWITCHED ALL OF YOUR MONEY INTO THE STOCK MARKET DIVERSIFIED PORTFOLIOS OF STOCKS AND BONDS HAD MUCH LESS RISK WHILE PROVIDING NEARLY AS MUCH RETURN AS AN ALLSTOCK PORTFOLIO DURING THE PAST 15 20 AND 25 YEARS SAYS LAURENCE B SIEGEL MANAGING DIRECTOR OF IBBOTSON ASSOCIATES INC A CHICAGO CONSULTING FIRM SPECIALIZING IN ECONOMICS INVESTMENTS AND FINANCE APRIL AND OCTOBER ARE THE TWO BIGGEST MONTHS FOR MATURING CDS SAYS ROBERT K HEADY PUBLISHER OF BANK RATE MONITOR IN NORTH PALM BEACH FLA INTEREST RATES ON CDS WERE FULLY DEREGULATED IN OCTOBER 1983 AND INVESTORS POURED MONEY INTO ONEYEAR AND SIXMONTH CERTIFICATES THAT MANY HAVE REGULARLY ROLLED OVER INTO NEW CDS AT MATURITY IN ADDITION SOME OF THE FLOOD OF CASH COMING OUT OF THE STOCK MARKET AFTER THE OCTOBER 1987 CRASH WENT INTO CDS THE APRIL TAX DEADLINE ALSO MAKES THIS MONTH A NATURAL TIME FOR INVESTMENT DECISIONS BUT SIMPLY ROLLING OVER THE MONEY WAS A LOT MORE PALATABLE IN EARLIER YEARS WHEN INTEREST RATES WERE SEVERAL PERCENTAGE POINTS HIGHER NOW INTEREST RATES ARE SO LOW THAT IT MAY TAKE SELFDISCIPLINE TO RESIST THE TEMPTATION TO SIMPLY SHIFT 100 OF THE MONEY INTO HIGHERYIELDING BONDS AND BOND FUNDS OR BET IT ALL ON SOME HOT STOCKMARKET PLAY THAT'S WHERE DIVERSIFICATION COMES IN DURING THE PAST 25 YEARS INVESTORS WHO PUT ALL THEIR SPARE MONEY IN STOCKS WOULD HAVE ENJOYED NUMEROUS YEARS OF GLITTERING RETURNS BUT ALSO SOME REAL DOWNERS LOOKING AT THE STANDARD & POOR'S 500STOCK INDEX SINCE 1968 TOTAL RETURNS INCLUDING BOTH PRICE CHANGES AND REINVESTED DIVIDENDS SOARED MORE THAN 30 IN 1991 1989 1985 1980 AND 1975 DATA COMPILED BY IBBOTSON SHOW BUT EVEN COUNTING DIVIDENDS STOCKS WERE LOSING INVESTMENTS IN SIX OF THOSE 25 YEARS INCLUDING 1973 AND 1974 WHEN THEY TOOK DOUBLEDIGIT PLUNGES NOW CONSIDER WHAT WOULD HAVE HAPPENED TO INVESTORS WHO PUT A THIRD OF THEIR MONEY IN STOCKS A THIRD IN TREASURY BONDS AND A THIRD IN CASH EQUIVALENT INVESTMENTS LIKE SHORTTERM TREASURY BILLS THEY WOULD HAVE LOST MONEY IN ONLY FOUR OF THE 25 YEARS AND THEIR LARGEST ANNUAL LOSS WOULD HAVE BEEN LESS THAN 5 IBBOTSON'S DATA SHOW THEIR COMPOUND ANNUAL RETURN OVER 25 YEARS WOULD HAVE BEEN 9 COMPARED WITH 1056 FOR AN ALLSTOCK PORTFOLIO WHEN DIVERSIFYING IT CAN ALSO PAY TO THINK GLOBAL ADDING FOREIGN STOCKS AND BONDS TO A US PORTFOLIO CAN HELP REDUCE THE OVERALL VOLATILITY WHILE ALSO BOOSTING THE RETURN OVER TIME DIVERSIFICATION MAKES ECONOMIC SENSE FOR DOLLARBASED INVESTORS EVEN THOUGH THERE IS THE RISK OF CURRENCY DEPRECIATION AGAINST THE DOLLAR SAYS HANI K FINDAKLY PRESIDENT OF POTOMAC CAPITAL INC AN INVESTMENTMANAGEMENT FIRM IN NEW YORK AN INVESTOR WHO DIVERSIFIED EVENLY AMONG US STOCKS US BONDS INTERNATIONAL STOCKS CASH AND REAL ESTATE FROM 19661992 WOULD HAVE EARNED AN ANNUAL RETURN OF 97 ACCORDING TO BAILARD BIEHL & KAISER A MONEYMANAGEMENT FIRM IN SAN MATEO CALIF THAT WAS ONLY SLIGHTLY BELOW THE 101 RETURN AN INVESTOR WOULD HAVE RECEIVED BY INVESTING WHOLLY IN US STOCKS AND THE ALLUS STOCK PORTFOLIO WAS MORE THAN TWICE AS VOLATILE AS THE FIVEPRONGED DIVERSIFICATION STRATEGY SAYS ARTHUR MICHELETTI CHIEF INVESTMENT STRATEGIST AT BAILARD BIEHL MR SIEGEL OF IBBOTSON ASSOCIATES SAYS JAPANESE STOCKS HAVE PRODUCED THE BEST RETURNS AMONG MAJOR ASSET GROUPS DURING THE PAST 25 YEARS EVEN THOUGH JAPANESE STOCK PRICES ARE ONLY ABOUT HALF OF WHAT THEY WERE AT THE END OF 1989 JAPANESE STOCKS FROM 19681992 PRODUCED A COMPOUND ANNUAL RETURN OF 1729 STOCKS OF COMPANIES IN THE UNITED KINGDOM CAME IN SECOND AT 1405 FOLLOWED BY US SMALLCAPITALIZATION STOCKS AT 1235 GERMAN STOCKS AT 1167 AND THE US S&P 500 INDEX AT 1056 AT THE BOTTOM OF THE LIST US TREASURY BILLS WHICH GENERATED A 721 ANNUAL RATE OF RETURN IBBOTSON'S STATISTICS ARE TOTAL RETURNS AND FOREIGN INVESTMENTS HAVE BEEN CONVERTED INTO US DOLLARS EFFECTIVE DIVERSIFICATION ALSO MEANS DIVERSIFYING YOUR HOLDINGS WITHIN EACH ASSET GROUP SAYS DAVID W PARSONS VICE PRESIDENT AT CHASE MANHATTAN'S PRIVATE BANK FOR EXAMPLE INVESTORS SHOULDN'T MAKE THE MISTAKE OF OWNING SHARES IN ONLY ONE COMPANY SUCH AS THE COMPANY THEY WORK FOR INSTEAD THEY SHOULD SPREAD OUT THEIR HOLDINGS AMONG A WIDE NUMBER OF STOCKS OR BUY SHARES OF A MUTUAL FUND MR PARSONS SAYS ONE OF THE EASIEST AND LEAST EXPENSIVE WAYS TO ACHIEVE DIVERSIFICATION IS THROUGH THE USE OF INDEX FUNDS THESE ARE MUTUAL FUNDS THAT BUY A LARGE NUMBER OF STOCKS BONDS OR BOTH IN AN EFFORT TO MATCH A BROAD MARKET INDEX INDEX FUNDS ARE VERY POPULAR BECAUSE THEY OFFER EXCEPTIONALLY LOW MANAGEMENT FEES THUS ENABLING INVESTORS TO KEEP MORE OF WHAT THEY EARN STUDIES HAVE SHOWN THAT INDEX FUNDS TYPICALLY OUTPERFORM MOST OTHER ACTIVELY MANAGED FUNDS OVER LENGTHY PERIODS OF TIME FOR INVESTORS WHO WANT BOTH STOCKS AND BONDS IN ONE INDEX FUND CONSIDER THE VANGUARD BALANCED INDEX FUND A NOLOAD FUND INTRODUCED LATE LAST YEAR IT KEEPS 60 OF ITS ASSETS IN A FULLY INDEXED STOCK PORTFOLIO AGAINST THE WILSHIRE 5000 INDEX AND THE OTHER 40 IN AN INDEXED BOND PORTFOLIO THE MINIMUM INITIAL INVESTMENT IS 3000 BUT ONLY 500 FOR INDIVIDUAL RETIREMENT ACCOUNTS INVESTORS BUYING BONDS DIRECTLY SHOULD CONSIDER DIVERSIFICATION AMONG MATURITIES ONE POPULAR STRATEGY KNOWN AS LADDERING INVOLVES BUYING BONDS WITH WIDELY VARYING MATURITIES ARRANGING THEM SO THAT THE MATURITIES RESEMBLE RUNGS ON A LADDER THAT PROVIDES SOME PROTECTION AGAINST UNEXPECTED INTERESTRATE MOVES FOR EXAMPLE AN INVESTOR MIGHT BUY TREASURY BILLS DUE IN ONE YEAR PLUS TREASURY NOTES DUE IN TWO YEARS FOUR YEARS SIX YEARS EIGHT YEARS AND 10 YEARS THUS IF INTEREST RATES SURGE THE INVESTOR WILL HAVE MONEY TO REINVEST AT REGULAR INTERVALS AT HIGHER RATES AND IF RATES PLUNGE THE INVESTOR WILL HAVE LOCKED AWAY SOME MONEY AT HIGHER LONGTERM YIELDS LADDERS CAN BE BUILT NOT ONLY WITH TREASURY BONDS BUT ALSO WITH CORPORATES GOVERNMENTAGENCY ISSUES MORTGAGEBACKED BONDS AND EVEN TAXFREE MUNICIPAL BONDS OR INVESTORS CAN BUY SHARES OF BOND MUTUAL FUNDS THAT INVEST IN A WIDE VARIETY OF ISSUES AS FOR FOREIGN STOCKS AND BONDS SEVERAL ANALYSTS ARE ESPECIALLY BULLISH RIGHT NOW ON EUROPEAN STOCKS AND BONDS BECAUSE THEY EXPECT EUROPEAN BUSINESS WEAKNESS AND LOW INFLATION TO LEAD TO LOWER INTEREST RATES IN COMING MONTHS SPARKING AN ECONOMIC REVIVAL MR FINDAKLY OF POTOMAC CAPITAL SAYS EUROPEAN BONDS LOOK ESPECIALLY ATTRACTIVE RIGHT NOW BECAUSE INTEREST RATES THERE ARE GOING TO COME DOWN A LOT HE IS PARTICULARLY BULLISH ON BONDS ISSUED BY FRANCE GERMANY DENMARK AND ITALY AMONG OTHERS 9304080138 930408 JUDGE IN KING BEATING TRIAL BACKS OFF FROM SUGGESTION OF A DEADLOCKED JURY LOS ANGELES THE JUDGE IN THE FEDERAL TRIAL OF FOUR POLICE OFFICERS ACCUSED OF BEATING MOTORIST RODNEY KING APPEARED TO RAISE THE POSSIBILITY OF A DEADLOCKED JURY IN THE CASE BUT LATER BACKED AWAY FROM THE SUGGESTION SEPARATELY A STATE COURT JUDGE AGREED TO DELAY UNTIL JULY 14 THE TRIAL OF THREE MEN ACCUSED OF BEATING TRUCK DRIVER REGINALD DENNY IN LAST YEAR'S RIOTS HERE THE BEATING WAS TELEVISED LIVE AND REPEATED ON THOUSANDS OF NEWSCASTS SUPERIOR COURT JUDGE JOHN OUDERKIRK POSTPONED THE TRIAL FROM APRIL 14 AFTER AN ATTORNEY FOR DEFENDANT DAMIAN WILLIAMS 20 YEARS OLD ASKED FOR MORE TIME TO PREPARE THE DECISION CAME OVER THE OBJECTIONS OF DEFENDANT ANTOINE MILLER 20 THE THIRD DEFENDANT IS HENRY WATSON 28 THEY ARE CHARGED WITH THE ATTEMPTED MURDER OF MR DENNY AS WELL AS LESSER CRIMES AGAINST OTHER PEOPLE THE JUDGE'S ACTION COMES AS TENSIONS ARE RUNNING HIGH OVER THE POTENTIAL FALLOUT FROM THE COMING VERDICTS IN THE FEDERAL KING BEATING TRIAL THAT CASE IS EXPECTED TO GO TO THE JURY TOMORROW YESTERDAY MORNING WITH THE JURY OUT JUDGE JOHN G DAVIES SUGGESTED THAT HE MIGHT TRY TO AVOID A HUNG JURY BY GIVING IN ADVANCE AN UNUSUAL INSTRUCTION USUALLY ISSUED ONLY AFTER A DEADLOCK I FORESEE DIFFICULTIES THE JUDGE SAID BUT LATER HE DECIDED NOT TO ISSUE THE INSTRUCTION JURY INSTRUCTIONS ARE EXPECTED TOMORROW AFTER CLOSING ARGUMENTS BEGINNING TODAY THOUGH JUDGE OUDERKIRK MADE NO REFERENCE TO THE KING CASE IN DELAYING THE DENNY PROCEEDING THE ACTION PUTS SPACE BETWEEN THE TWO POTENTIALLY EXPLOSIVE TRIALS IN PREPARATION FOR ANY REPEAT OF THE VIOLENCE THAT FOLLOWED LAST YEAR'S STATE COURT ACQUITTAL ON NEARLY ALL CHARGES IN MR KING'S BEATING THE LOS ANGELES POLICE DEPARTMENT HAS SAID IT WILL HAVE MORE THAN 6000 OFFICERS ON THE STREETS EACH DAY FROM THE TIME JURY DELIBERATIONS BEGIN UNTIL AFTER THE VERDICT IS READ THE DELAY ALSO POSTPONES MR DENNY'S CASE UNTIL AFTER THE JUNE RUNOFF IN LOS ANGELES'S MAYORAL ELECTION THE RACE'S PRIMARY IS SET FOR APRIL 20 LAST MONTH ALL PARTIES IN THE DENNY CASE SAID THAT THEY WERE WILLING TO DISCUSS PLEA BARGAINS DISTRICT ATTORNEY GIL GARCETTI SAID DURING HIS CAMPAIGN FOR THE POST LAST FALL THAT HE WOULD DISCUSS PLEA AGREEMENTS BUT HE HASN'T PUBLICLY COMMENTED ON THE ISSUE SINCE 9304080137 930408 TROUT FUND CLIENTS STEAMED OVER LOSS RESULTING FROM UNAUTHORIZED TRADING BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CLIENTS OF A WELLKNOWN COMMODITY FUND ARE STEAMING OVER A LOSS OF MORE THAN 6 MILLION CAUSED BY UNAUTHORIZED TRADING INVESTORS IN TROUT TRADING FUND BASED IN BERMUDA AND ONE OF SEVERAL FUNDS RUN BY MONROE TROUT AMONG THE COUNTRY'S BESTPERFORMING COMMODITY FUND MANAGERS LEARNED OF THE LOSSES IN A LETTER FROM MR TROUT DATED MARCH 26 THE LETTER SAID THAT 09 OF AN EXPECTED 22 LOSS IN THE 670 MILLION FUND IN MARCH WAS DUE TO UNAUTHORIZED TRADES BY ONE OF MR TROUT'S FORMER EMPLOYEES WE HAVE FIRED THIS EMPLOYEE AND ARE PURSUING LEGAL ACTION AGAINST HIM THE LETTER SAID WITHOUT PROVIDING DETAILS ABOUT WHERE THE TRADES OCCURRED BY WHOM OR WHAT MEASURES THE FUND IS TAKING TO SEE THAT UNAUTHORIZED TRADES DO NOT OCCUR AGAIN THE LETTER DID NOT SAY WHETHER THE FUND WHICH POSTED A 21 GAIN LAST YEAR ACCORDING TO AN INDUSTRY NEWSLETTER WOULD MAKE UP THE LOSS TO INVESTORS FROM THE UNAUTHORIZED TRADES MR TROUT DIDN'T RETURN PHONE CALLS TO HIS OFFICE AT TROUT TRADING CO IN CHICAGO PAUL M EUSTACE PRESIDENT OF TROUT TRADING WOULDN'T ELABORATE ON THE LETTER IN A BRIEF TELEPHONE INTERVIEW THIS WAS AN UNFORTUNATE INCIDENT HE SAID WE'RE LOOKING FORWARD TO PUTTING IT BEHIND US AT THIS MOMENT WE HAVE NO PLANS TO MAKE FURTHER DISCLOSURES OUR VIEW IS THAT THE LETTER STANDS FOR ITSELF BUT NOT ALL OF TROUT'S CLIENTS WERE SATISFIED WITH THE LETTER'S EXPLANATION A LOT OF PEOPLE WITH MONEY INVESTED IN TROUT WERE REALLY QUITE ANGRY AND EXPECT A MORE DEFINITIVE LEGAL EXPLANATION SAID ONE TROUT CUSTOMER WHO SPOKE ON CONDITION OF ANONYMITY ONE COMMODITY FUND MANAGER FAMILIAR WITH THE LETTER SAID THAT IT WAS UNHEARD OF TO SEND A LETTER TO CLIENTS HIGHLIGHTING SUCH AN INAPPROPRIATE ACTION WITHOUT ADDRESSING WHETHER CLIENTS WOULD BE REIMBURSED ANY TIME YOU SEND A LETTER LIKE THAT TO INVESTORS IT'S A REAL EYEBROW MOVER THE EXECUTIVE SAID ASKING NOT TO BE IDENTIFIED THE COMMODITY FUTURES TRADING COMMISSION SAID IT IS INVESTIGATING THE INCIDENT A SPOKESMAN FOR THE AGENCY SAID THAT TROUT OFFICIALS HAD NOTIFIED THE AGENCY ABOUT THE UNAUTHORIZED TRADING AND THAT THE COMMISSION WAS LOOKING INTO SPECIFICS PEOPLE FAMILIAR WITH THE INVESTIGATION SAID THE UNAUTHORIZED TRADING OCCURRED IN THE OVERTHECOUNTER GOVERNMENT SECURITIES MARKET SPECIFICALLY THE GOVERNMENT REPURCHASE AGREEMENT MARKET A GOVERNMENT REPURCHASE AGREEMENT IS AN AGREEMENT IN WHICH A SELLER AGREES TO BUY BACK GOVERNMENT SECURITIES AT A FIXED PRICE 9304080136 930408 NEW CANDIES FOR KIDS MAY SEEM TASTELESS TO ADULTS BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL IF SOME ENTERPRISING CANDY MAKERS HAVE THEIR WAY MORE KIDS WILL BE PLAYING WITH THEIR FOOD CONFECTIONERS WITH AN EYE ON THE POCKETS OF MILLIONS OF CHILDREN ARE ROLLING OUT SCORES OF NOVELTY PRODUCTS DESIGNED FOR KIDS TO BLOW SPIT SPIN THROW AND USE TO GROSS OUT MOM AND DAD MANY OF THE LATEST ATTEMPTS TO BE FLASHY SHOCKING AND OCCASIONALLY DISGUSTING WERE ON DISPLAY AT A NATIONAL CANDY WHOLESALERS' TRADE SHOW IN LOS ANGELES AMONG THE HOTTEST NEW PRODUCTS SWEETS THAT PAINT THE LIPS TONSILS AND EVERYTHING IN BETWEEN A STARTLING SHADE OF BLUE GREEN RED OR PURPLE ZEEBS ENTERPRISES INC'S KABLOOEY GUMBALLS FOREIGN CANDY CO'S DYE HARD GUMFILLED LOLLIPOPS AND CONCORD CONFECTIONS INC'S TONGUE SPLASHERS GUM SOLD IN MINIATURE PAINT CANS ALL PROMISE TO GIVE KIDS AN EXCUSE TO OPEN WIDE OR A CHANCE TO FOOL UNSUSPECTING ADULTS AND FRIENDS HOW CAN IT BE SO SOUR CO A UNIT OF SHERMAN'S CONFECTIONS OF COVINA CALIF HAS ROLLED OUT MAD DAWG A FIZZY GUMBALL THAT CAUSES ITS CONSUMER TO FOAM AT THE MOUTH GLENN CANDIES IS TOUTING SPACE WORMS LARVALLOOKING WAX GUM TREATS FILLED WITH TART SPACE POWDER AND SOME OLD CANDIES ARE BEING TAUGHT NEW TRICKS LIKE BERZERK CANDY WERKS' MINIATURE JAWBREAKERS NOW SOLD IN BOXES AS SPITBALLS THE PUSH TO SELL DIRECTLY TO CHILDREN LARGELY THROUGH CONVENIENCE AND DRUG STORES ATTESTS TO THE GROWING INDEPENDENCE OF PINTSIZED CONSUMERS ESTIMATES VARY ON HOW MUCH CHILDREN SPEND ON CANDY EACH YEAR BUT INDUSTRY EXPERTS AND RETAILERS FIGURE THAT A MAJORITY OF THE NATION'S 33 MILLION CHILDREN BETWEEN FOUR AND 12 YEARS OLD HAVE AN AVERAGE OF 4 TO SPEND A WEEK MOST OF WHICH GOES TOWARD CANDY SNACKS AND TOYS WE'RE FOCUSED ON SELLING DIRECTLY TO CHILDREN RATHER THAN TO MOMS SAYS DAVID O COMPTON JR MARKETING MANAGER FOR NEW PRODUCTS AT BERZERK CANDY WERKS THE NEW CHILDREN'S NOVELTY CANDY DIVISION OF PHILIP MORRIS COS' KRAFT FOOD INGREDIENTS KIDS HAVE MORE MONEY THEY'RE MORE SOPHISTICATED AND INDEPENDENT AND THEY MAKE MORE DECISIONS THEMSELVES MANY PARENTS SAY THEY'RE NOT THRILLED BY TASTELESS PRODUCTS BUT THEY ALLOW THEIR CHILDREN TO BUY THEM AS LONG AS THEY STAY AWAY FROM VIOLENT OR ADULT THEMES I DON'T CARE HOW STUPID SLIMY OR DISGUSTING A CANDY OR TOY IS SAYS MONICA PARKER SAVARD OF BEVERLY HILLS CALIF THE MOTHER OF A SEVENYEAROLD SON I JUST DON'T WANT IT ON MY DININGROOM TABLE OR UNDER IT I BUY WHAT I WANT SAYS BOB YU 11 I JUST EAT IT BEFORE I GET HOME WITH MANY NEW PRODUCTS THE CANDY ITSELF IS ONLY HALF THE FUN VALUEADDED PACKAGING IS A NEW MANTRA FOR MANUFACTURERS THEY BELIEVE THEY CAN COAX CHILDREN TO SPEND MORE FOR A PRODUCT THAT ENDURES AFTER THE CANDY IS GONE WHILE KIDS' CANDIES HAVE TRADITIONALLY BEEN TARGETED IN THE 25CENT TO 39CENT RETAIL PRICE RANGE SEVERAL BIG COMPANIES ARE SHOOTING TOWARD THE 89CENT RANGE AND SOME ARE EVEN GOING AS HIGH AS 199 CREATIVE CONFECTION CONCEPTS INC'S TONGUEWARMING GREAT BALLS OF FIRE COME PACKED IN A ROUND PLASTIC CONTAINER WHOSE LID DOUBLES AS A GLOWINTHEDARK FLYING SAUCER AMUROL PRODUCTS CO A DIVISION OF WM WRIGLEY JR CO HAS CAPITALIZED ON NOVEL PACKAGING WITH PRODUCTS LIKE A MINIATURE WALLET CONTAINING GUM AND PLAY MONEY AND BUBBLE TAPE WHICH CONSISTS OF SEVERAL FEET OF BUBBLE GUM PLAY VALUE IS SUCH A BUZZ PHRASE THAT SOME TOY MAKERS ARE EVEN GETTING INTO THE ACT CAP TOYS INC OF BEDFORD HEIGHTS OHIO IS SELLING THE SPIN POP A MOTORIZED GADGET THAT WHIRLS LOLLIPOPS SPARING KIDS THE DRUDGERY OF TWIDDLING THE STICKS THEMSELVES FOR KIDS AFRAID OF EATING CANDY IN THE DARK THE COMPANY OFFERS LASER POP WHICH LIGHTS UP AT THE TOUCH OF A BUTTON CAP TOYS EXECUTIVES CONCEDE THAT THE SUGGESTED 299 RETAIL PRICE MAY PREVENT IMPULSE BUYING BY CHILDREN STILL SAYS JAY TAPPER DIRECTOR OF CAP'S CANDY DIVISION WE THINK THAT IF ONE KID IN A CLASS HAS ONE EVERYONE ELSE WILL WANT ONE FOR ALL ITS APPEAL THE NOVELTY CANDY BUSINESS HAS SOME STICKING POINTS KIDS ARE TREMENDOUSLY FICKLE AND VERY PICKY SAYS LISBETH ECHEANDIA PUBLISHER OF CONFECTIONER A TRADE PUBLICATION MOREOVER CHILDREN ARE LIKELY TO KEEP SPENDING PART OF THEIR ALLOWANCES ON SUCH TRADITIONAL TREATS AS CANDY BARS COOKIES AND SALTED SNACKS THE MORE SHOCKING PRODUCTS EITHER IN CONCEPT OR FLAVOR CAN FACE A MAJOR HURDLE JUST GETTING PAST DISTRIBUTORS AND WHOLESALE BUYERS AND ON TO STORE SHELVES THE BIG PROBLEM SAYS MS ECHEANDIA IS THAT ALL THE BUYERS ARE ADULTS EVEN SO RETAILERS AND MANUFACTURERS SAY STORES ARE INCREASINGLY RECEPTIVE TO KIDS' ITEMS EVEN THOSE IN QUESTIONABLE TASTE BECAUSE OF THE CHANGING CUSTOMER AND THE CONSTANT QUEST FOR PROFITS ONE OF THE TRADE SHOW'S BUSIEST BOOTHS WAS HOW CAN IT BE SO SOUR'S DISPLAY OF PLASTIC NOSE CONTAINERS FILLED WITH A GOOEY LIQUID CANDY DUBBED SUPER NAUSEATING OBNOXIOUS TREAT HAD THE PRODUCT BEEN RELEASED FIVE YEARS AGO IT PROBABLY WOULDN'T HAVE WORKED SAYS LORI BASSETT HEAD OF SALES AND MARKETING NOW SHE SAYS BUYERS ARE MORE WILLING TO STOCK SHOCK CANDIES AND LET CHILDREN DECIDE FOR THEMSELVES WHAT TO EAT INDEED DISTRIBUTORS AND RETAILERS SAY THEY SOMETIMES HAVE TO STRUGGLE TO STRIKE A BALANCE BETWEEN GOOD TASTE AND GOOD SALES RON SOSNICK PRESIDENT OF SOSNICK COS SAYS HIS BIG WEST COAST DISTRIBUTION OPERATIONS BALK AT SUCH POPULAR ITEMS AS MASSMURDERER TRADING CARDS RETAILERS TRY TO TAILOR THE MIX TO PLACATE THEIR PRIMARY SHOPPERS AT KMART CORP STORES WHERE CHILDREN ALMOST ALWAYS ARRIVE WITH AN ADULT BUYERS ARE CAREFUL TO LOOK FOR SWEETS THAT AREN'T TOO CRUDE MESSY OR OTHERWISE OBJECTIONABLE TO PARENTS WE LOOK AT IT AS A FAMILY SHOPPING EXPERIENCE AND WE SURELY DON'T WANT TO OFFEND SAYS BOB SCHANBACHER KMART'S CANDY BUYER FOR RETAILERS THAT HAVE MORE UNACCOMPANIED YOUNG CUSTOMERS SUCH AS SOUTHLAND CORP'S 7ELEVEN CHAIN A REPUTATION AS A LEADINGEDGE CANDY SELLER CAN BE VALUABLE KENNETH FRIES CATEGORY MANAGER FOR CANDY AND TRADING CARDS SAYS HE DRAWS THE LINE AT CANDY CIGARETTES AND ADULTTHEMED TRADING CARDS BUT CONSIDERS OTHER PRODUCTS ON THEIR MERITS THERE'S GROSS AND THERE'S KIND OF A CUTE GROSS HE SAYS HE SAYS HE HASN'T DECIDED YET WHETHER TO CARRY SNOT INDUSTRY EXECUTIVES THINK CHANGING SOCIAL MORES MAY ALSO HAVE SOMETHING TO DO WITH THE INDEPENDENCE OF YOUNG CONSUMERS TOPPS CO A BIG GUM CANDY AND TRADINGCARD COMPANY RAISED A STINK AND MILLIONS OF DOLLARS IN SALES WITH ITS GARBAGE PAIL KIDS TRADING CARDS IN THE MID1980S THESE DAYS THE EXECUTIVES SAY ADULTS WOULD BE LESS LIKELY TO COMPLAIN PARENTS SAY I HAVE TO FIGHT HIM TO GO TO SCHOOL CLEAN HIS ROOM MAKE HIS BED AND TAKE SHOWERS AND I'M NOT GOING TO FIGHT HIM ABOUT WHAT KIND OF GUM HE CHOOSES' SAYS ARTHUR T SHORIN TOPPS'S CHIEF EXECUTIVE IT'S TOUGHER TO BRING UP A KID THESE DAYS AND IT'S TOUGHER TO BE A KID 9304080135 930408 MEDIA NBC NEWS PLACES BET ON DARK HORSE LACK AS PRESIDENT BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NBC CHOSE A DARKHORSE CANDIDATE CBS NEWS EXECUTIVE PRODUCER ANDREW LACK TO HEAD THE TURMOILRIDDEN NBC NEWS DIVISION MR LACK'S APPOINTMENT AS PRESIDENT OF THE DIVISION SIGNALS NBC'S INTENT TO FOCUS ON PRIMETIME NEWS PROGRAMS POTENTIALLY A HIGHLY PROFITABLE AREA IN WHICH THE NETWORK HAS STRUGGLED FOR YEARS BUT NBC TURNED TO MR LACK A PRIMETIME PRODUCER WITH LITTLE HARDNEWS EXPERIENCE ONLY AFTER FIRST CONSIDERING MUCHBETTERKNOWN CANDIDATES WITH BROADER EXPERIENCE IN SEARCHING FOR A NEW PRESIDENT SINCE THE RESIGNATION OF MICHAEL GARTNER MARCH 2 AMID CONTROVERSY OVER AN NBC STORY ON GENERAL MOTORS CORP TRUCKS NBC HAS SOUNDED OUT ABC NEWS PRESIDENT ROONE ARLEDGE PUBLIC BROADCASTING SERVICE COMMENTATOR BILL MOYERS AND NBC NEWS WASHINGTON BUREAU CHIEF TIMOTHY RUSSERT AMONG OTHERS CABLE NEWS NETWORK'S PRESIDENT TOM JOHNSON EMERGED AS THE TOP CANDIDATE AND GOT THE HARD SELL FROM A NUMBER OF NBC EXECUTIVES BEFORE TURNING THE NETWORK DOWN LATE LAST WEEK THAT'S WHEN MR LACK EMERGED AS A CANDIDATE HE HAD COME TO NBC PRESIDENT ROBERT WRIGHT'S ATTENTION AT THE RECOMMENDATION OF ANCHOR TOM BROKAW WHO SUGGESTED HIM FOR A PRODUCER'S JOB PERHAPS AS EXECUTIVE PRODUCER OF NBC NIGHTLY NEWS A POST THAT'S ALSO VACANT THE NEW PRESIDENT OF NBC NEWS MUST WALK A FINE LINE BOTH PUSHING NEW PRIMETIME PROGRAMMING WITH HIGH ENTERTAINMENT VALUE AND GUIDING THE DIVISION OUT OF ITS WORST EMBARRASSMENT EVER NBC A UNIT OF GENERAL ELECTRIC CO WAS WIDELY CRITICIZED FOR ITS REPORT ON THE PRIMETIME PROGRAM DATELINE NBC ON ALLEGED SAFETY PROBLEMS WITH GM PICKUP TRUCKS IT INCLUDED A STAGED CRASH OF A GM TRUCK CATCHING FIRE WHAT NBC DIDN'T TELL VIEWERS WAS THAT TINY ROCKETS WERE USED TO ENSURE THAT A FIRE STARTED THREE DATELINE PRODUCERS WERE FORCED TO RESIGN OVER THE CONTROVERSY AND CORRESPONDENT MICHELE GILLEN WAS TRANSFERRED TO AN NBCOWNED STATION IN MIAMI MR LACK 45 YEARS OLD IS CURRENTLY EXECUTIVE PRODUCER OF THE CBS NEWS MAGAZINE STREET STORIES IN RECENT YEARS IN ADDITION TO PRODUCING DOCUMENTARIES AND SPECIALS FOR CBS NEWS HE HAS DABBLED IN ENTERTAINMENT PRODUCTION FOR THE NETWORK A MADEFORTV MOVIE ABOUT SEXUAL HARASSMENT THAT HE DEVELOPED CALLED TWO COPS STARRING MEL HARRIS AND MELISSA GILBERT JUST FINISHED PRODUCTION IN HIS 16 YEARS AT CBS NEWS MR LACK DISTINGUISHED HIMSELF AS CREATOR AND EXECUTIVE PRODUCER OF THE PRIMETIME NEWS MAGAZINE WEST 57TH AIMED AT A YOUNGER AUDIENCE THAN THOSE WHO WATCH THE VENERABLE 60 MINUTES WEST 57TH WHILE NO LONGER ON THE AIR PROVED A NETWORK COULD EXPAND TO MORE THAN ONE HOUR OF PRIMETIME NEWS A WEEK BUT HE DREW CRITICISM FOR A SECOND NEWS MAGAZINE SATURDAY NIGHT WITH CONNIE CHUNG WHICH EMPLOYED MUCHMALIGNED RECREATIONS USING ACTORS TO TELL NEWS STORIES I TRIED THEM ONCE AND ONCE IS ENOUGH MR LACK SAID IN AN INTERVIEW THAT WAS LONG AGO AND FAR AWAY SIMILARLY HE SAID THAT HIS INTEREST IN DOING ENTERTAINMENT PRODUCTIONS IS IN THE PAST MR LACK SAID THAT WHILE NBC HAS HIRED HIM TO EXPAND PRIMETIME NEWS TO ITS LIMITS HIS FIRST PRIORITY WILL BE THE THIRDPLACE NBC NIGHTLY NEWS AND RENEWING MR BROKAW'S CONTRACT WHICH EXPIRES IN AUGUST ALTHOUGH MR LACK DOESN'T HAVE HARDNEWS EXPERIENCE MR BROKAW NOTED THAT NEITHER DID THE HIGHLY SUCCESSFUL MR ARLEDGE WHO JOINED ABC NEWS FROM ABC SPORTS IN FACT MR LACK IS THE FIRST NBC NEWS PRESIDENT IN SOME TIME TO COME IN WITH A TV NEWS BACKGROUND MR GARTNER WAS A NEWSPAPER EXECUTIVE MR GARTNER'S PREDECESSOR LAWRENCE GROSSMAN HAD BEEN PRESIDENT OF PBS MR LACK WILL HAVE ANOTHER ADVANTAGE OVER HIS PREDECESSORS HE WILL NOT HAVE TO TAKE THE DIVISION THROUGH THE WRENCHING DOWNSIZING THAT STARTED UNDER MR GROSSMAN AND CONTINUED UNDER MR GARTNER WHICH PROVOKED SEVERE MORALE PROBLEMS AMONG STAFFERS THE DIVISION WAS RACKING UP LOSSES OF 125 MILLION ANNUALLY WHEN MR GROSSMAN LEFT THIS YEAR IT'S EXPECTED TO MAKE A MODERATE PROFIT THAT COULD APPROACH 20 MILLION THANKS LARGELY TO THE PRIMETIME DATELINE AND AN EXPANSION OF OVERALL PROGRAMMING UNDER MR GARTNER NBC'S PRESIDENT MR WRIGHT SAID THAT WHILE NBC DOESN'T WANT TO GO BACK TO THE OLD FREESPENDING WAYS WE RECOGNIZE THAT IT TAKES RESOURCES TO GET THE JOB DONE 9304080134 930408 WHO'S NEWS TYCO TOYS INC TYCO TOYS INC MT LAUREL NJ HARRY J PEARCE WAS NAMED TO THE NEW POSITION OF VICE CHAIRMAN MR PEARCE 48 YEARS OLD WILL CONTINUE AS CHIEF FINANCIAL OFFICER HE HAS BEEN WITH TYCO SINCE 1973 AND HAS SERVED AS A DIRECTOR SINCE 1988 THE TOY MAKER ALSO NAMED KARSTEN MALMOS CURRENTLY EXECUTIVE VICE PRESIDENT INTERNATIONAL TO BE PRESIDENT OF A NEW UNIT TYCO INTERNATIONAL RESPONSIBLE FOR ALL 13 OF TYCO'S SALES AND MARKETING SUBSIDIARIES OUTSIDE THE US TYCO ALSO SAID IT CREATED ANOTHER UNIT TYCO US AND HAS RETAINED A SEARCH FIRM TO FIND A PRESIDENT FOR THE UNIT BY JULY 9304080133 930408 HCC INSURANCE GETS BANK LOAN HOUSTON HCC INSURANCE HOLDINGS INC SAID IT GOT A 20 MILLION LOAN FROM FIRST INTERSTATE BANK OF TEXAS NA THE INSURANCE COMPANY SAID IT USED THE LOAN PROCEEDS TO RETIRE 35 MILLION OF BANK DEBT AND TO INVEST 15 MILLION OF CAPITAL IN ITS HOUSTON CASUALTY CORP UNIT THE BALANCE WAS USED FOR DEBT SERVICE A COMPANY SPOKESMAN SAID THE INTEREST RATE ON THE LOAN IS INITIALLY AT THE PRIME RATE BUT WILL INCREASE OVER THE NEXT 15 MONTHS TO THE PRIME RATE PLUS ONE PERCENTAGE POINT THE LOAN MATURES IN OCTOBER 1998 THE SPOKESMAN SAID 9304080132 930408 LETTERS TO THE EDITOR NO MORE DR FEELGOOD DR DANIEL M SHAPIRO IN HIS MARCH 11 LETTER TO THE EDITOR SEEMS TO THINK IT'S A WONDERFUL THING THAT HIS PATENT FOR DELTA9THC A MARIJUANA EXTRACT ELIMINATES THE HIGHS IF BEING HIGH IS SO TERRIBLE WHY DO DENTISTS ROUTINELY ADMINISTER LAUGHING GAS WHICH HAS ALWAYS BEEN PERFECTLY LEGAL COULD IT BE THAT IN OUR PURITANICAL CULTURE BEING HIGH IS ACCEPTABLE ONLY WHEN FOLLOWED BY EXCRUCIATING AGONY 9304080131 930408 PEPPERAND SALT WITH SYBARITIC PLEASURES AND HE'S NOT ABOVE EGO TRIPS SUFFERS FROM OVERKILL AS DANCING UP A STORM 9304080130 930408 CREDIT RATINGS GOODYEAR TIRE & RUBBER CO NEW YORK STANDARD & POOR'S CORP SAID IT RAISED ITS RATINGS ON 410 MILLION IN GOODYEAR'S LONGTERM DEBT BECAUSE OF THE TIREMAKER'S DEBT REDUCTION IMPROVED COMPETITIVE POSITION AND HIGHER OPERATING EARNINGS THE RATING AGENCY UPGRADED GOODYEAR'S SENIOR DEBT TO TRIPLEBMINUS FROM DOUBLEB AND ITS COMMERCIAL PAPER TO SINGLEA3 FROM SINGLEB 9304080129 930408 LEISURE & ARTS TV A DEPRESSED INSPECTOR A MOM WITH HOMICIDAL IDEAS BY DOROTHY RABINOWITZ HERE AGAIN IN A NEW MYSTERY IS THE PHILOSOPHER DETECTIVE INSPECTOR MORSE MAYBE IT ONLY SEEMS THAT WAY BUT THE INSPECTOR'S TEMPERAMENT HAS TAKEN A DECIDED TURN FOR THE WORSE AS THIS SERIES CONTINUES THE ONCE MERELY DOUR MORSE APPEARS THESE DAYS TO BE IN THE GRIP OF AN ADVANCED CLINICAL DEPRESSION GROWING BLACKER WITH EVERY EPISODE TONIGHT CHAPTER ONE OF A TWOPARTER THE INSPECTOR BROODS OVER THE MURDER OF A FORMER COLLEAGUE A COPPER'S COPPER WHOSE DEATH OPENS QUESTIONS ABOUT A 20YEAROLD UNSOLVED MURDER IF IT'S NOT BRILLIANT IT'S STILL VERY DECENT MORSE STRAIGHTFORWARD AND UNENCUMBERED UNLIKE OTHER RECENT EPISODES BY THE BURNING SOCIAL ISSUES OF OUR TIMES A NICE PARADE OF SHADOWY CHARACTERS WANDER THROUGH THIS STORY A DEFTLY WRITTEN ONE IN WHICH MORSE MUTTERS LINES SUCH AS YOU'LL THINK THIS IS A CLICHE BUT DON'T LEAVE TOWN AS ITS TITLE SUGGESTS THERE'S A STRONGLY ZANY ASPECT TO THIS FILM ABOUT THE CHANNELVIEW TEXAS MOTHER WHO HIRED A HIT MAN IN ORDER TO ENSURE HER DAUGHTER'S PLACE ON THE HIGHSCHOOL CHEERLEADING SQUAD NEVERTHELESS THOSE WHO ARE LEERY AND RIGHTLY SO OF ZANY MOVIES AT LEAST THOSE COMMITTED TODAY SHOULD THINK AGAIN BEFORE BYPASSING THIS SCINTILLATING IF OVERSTYLIZED DARK COMEDY WRITTEN BY JANE ANDERSON HOLLY HUNTER CHIRRUPS ALONG WITH HOMICIDAL VIVACITY IN THE ROLE OF WANDA HOLLOWAY THE MOTHER WHO DECIDED TO IMMOBILIZE DAUGHTER SHANNA'S CHIEF CARTWHEELING RIVAL AMBER BY ELIMINATING AMBER'S MOTHER IF AS IS SOMETIMES TRUE MS HUNTER'S WANDA CARRIES ON IN DEEP TEXAS ACCENTS TOO PURE FOR COMPLETE COMPREHENSIBILITY NORTH OF TEXARKANA NO MATTER WE GET THE PICTURE WE GET THE PICTURE TOO OF THE FILMRIGHTS BUYING CIRCUS THAT ENSUES WHEN A TRUE STORY LIKE THIS ONE BREAKS IT IS A TALE OF IDIOCY FULL OF FUN AND FURY SIGNIFYING PLENTY IN 1937 THE NAZIS MOUNTED AN EXHIBITION OF ARTWORKS IN MUNICH OFFICIALLY REPRESENTING ALL THAT WAS INIMICAL TO GERMAN LIFE AND CULTURE THE PAINTINGS SCULPTURES AND DRAWINGS OF THE MOST FAMOUS MODERNISTS CONFISCATED FROM MUSEUMS WERE JUMBLED TOGETHER IN THE EXHIBITION HALL AND LABELED WITH JEERING EXPLANATIONS GERMANS FLOCKED TO THE SHOW IN HUGE NUMBERS IN THIS NEW DOCUMENTARY AN ELDERLY MAN RECALLS HIS SCHOOLTEACHER'S URGING THE ENTIRE CLASS TO ATTEND SO IT WOULD UNDERSTAND HOW DEGENERATE THE WORLD HAD BECOME ANOTHER REMEMBERS HOW HE AND HIS FELLOW ART STUDENTS RUSHED TO SEE IT BECAUSE THEY THOUGHT IT MIGHT BE THE LAST TIME THEY WOULD EVER LAY EYES ON THE ARTWORKS THEY REVERED CRITIC ROBERT HUGHES NOTES WITH SOME GRIMNESS THAT THE MUNICH DISPLAY MAY HAVE BEEN THE MOST POPULAR EXHIBITION OF ART EVER ASSEMBLED WITH THE EYEWITNESSES PERIOD FOOTAGE AND COMMENTARIES THIS IS A FILM BY DAVID GRUBIN OF INDISPUTABLE POWER THE CLASS IN QUESTION WEST POINT 1861 GOES OFF TO FIGHT THE CIVIL WAR IN THIS FILM BY STEVEN SPIELBERG AND JONAS MCCORD TO THEIR CREDIT THE PRODUCERS UNDERTOOK A LARGE THEME THE BITTERLY CONFLICTING LOYALTIES ENGENDERED BY THE WAR AND WHEN IT DEALS WITH THE WAR ITSELF THE BATTLES THE SUNDERED TIES OF FRIENDSHIP BETWEEN UNION AND CONFEDERATE LOYALISTS THAT DRAMA HAS AN AFFECTING VITALITY THE TROUBLE IS THE GOBBLEDYGOOK THAT COMES IN BETWEEN AND THERE'S A LOT OF IT OVERRIPE DITHERING ABOUT ROMANCE RELATIONSHIPS AND SO FORTH COMPLETE WITH TURGID DIALOGUE THE MORAL OF THIS FAILURE IS THAT SCRIPTWRITERS MATTER AN UNUSUALLY MUTED IF NOT DOWNRIGHT GENTLE ROSEANNE ARNOLD PLAYS A WELFARE MOTHER DEVOTED TO ELVIS AND THE FREEENTERPRISE SYSTEM THE LATTER ENTHUSIASM GETS HER INTO NO END OF TROUBLE WITH AUTHORITIES WHO CONSIDER HER A WELFARE CHEAT A SODDEN STORY MUCH OF THE TIME IT DOES HAVE ITS INTERESTING ASPECTS MOST OF THEM MS ARNOLD'S PERFORMANCE 9304080128 930408 ABBEY HEALTHCARE WITHDRAWS ITS BID FOR LIFETIME AFTER OFFER IS REJECTED BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL ABBEY HEALTHCARE GROUP INC WITHDREW ITS 2613 MILLION OFFER TO ACQUIRE LIFETIME CORP CITING ITS LACK OF RESPONSIVENESS TO ABBEY'S REQUESTS TO DISCUSS A MERGER OF THE HOME HEALTHCARE CONCERNS IT WOULD BE NEITHER PRODUCTIVE NOR IN THE BEST INTERESTS OF ABBEY'S SHAREHOLDERS TO CONTINUE TO SEEK A DIALOGUE WITH A BOARD THAT STEADFASTLY REFUSES TO MEET WITH OUR REPRESENTATIVES SAID TIMOTHY AITKEN ABBEY'S CHAIRMAN UNDER THE CURRENT CIRCUMSTANCES THIS DEAL IS DEAD MR AITKEN SAID COSTA MESA CALIFBASED ABBEY HAS MADE REPEATED ATTEMPTS TO REACH LIFETIME'S FINANCIAL ADVISERS AND THE CALLS WEREN'T RETURNED THE ABRUPT ANNOUNCEMENT CAME THE DAY AFTER LIFETIME REJECTED ABBEY'S 2750ASHARE SWEETENED OFFER AS INADEQUATE LIFETIME RESPONDED TO ABBEY'S WITHDRAWAL BY REPEATING ITS CLAIM THAT THE BID WASN'T REAL MR AITKEN'S PROBLEM WE BELIEVE IS HIS INABILITY TO TURN WHAT IS ESSENTIALLY A PROPOSAL INTO A REAL OFFER AND ONE THAT IS FULLY FINANCED THE COMPANY SAID IT SAID IT INTENDS TO PRESS AHEAD WITH ITS OWN EFFORTS TO MAXIMIZE SHAREHOLDER VALUE IN THE NEAR TERM INCLUDING A POSSIBLE SALE OF THE COMPANY LIFETIME SHARES CLOSED AT 2525 UNCHANGED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ABBEY SHARES CLOSED AT 18 UP 25 CENTS IN OVERTHECOUNTER TRADING ABBEY'S ABRUPT WITHDRAWAL COMING AFTER LIFETIME'S STATEMENT THAT ITS OPTIONS MIGHT INCLUDE A SALE OF THE COMPANY SURPRISED ANALYSTS WHO SAID IT MIGHT BE A PLOY TO PUT MORE PRESSURE ON LIFETIME'S BOARD IS IT POSSIBLE THIS IS JUST POSTURING RANDALL S HUYSER AN ANALYST AT FURMAN SELZ INC ASKED RHETORICALLY THIS MAY BE ABBEY'S WAY OF SAYING THAT IT ISN'T WILLING TO RAISE ITS BID AGAIN IN RESPONSE TO LIFETIME'S REJECTION OF ITS SWEETENED BID THE ANALYST SAID MR AITKEN BRUSHED ASIDE QUESTIONS ABOUT NEGOTIATING TACTICS SAYING ABBEY ISN'T HERE TO PLAY GAMES IT IS HERE TO TRY TO ACCOMPLISH SOMETHING THAT IS WORTHWHILE ABBEY SAID IT ALSO BELIEVES LIFETIME IS A DETERIORATING ASSET BECAUSE OF ITS EMPLOYEES' CONCERNS ABOUT THE COMPANY'S FUTURE MR AITKEN SAID LIFETIME'S REVIEW IS LIKELY TO BE A LONG DRAWNOUT AFFAIR THAT WILL FUEL THAT WORRY AND DRIVE SOME EMPLOYEES AWAY ABBEY'S PROPOSAL TO ACQUIRE LIFETIME SURFACED LATE LAST MONTH WITH ITS OFFER TO ACQUIRE THE COMPANY FOR ABOUT 220 MILLION OR 2350 A SHARE IN CASH AND ABBEY STOCK ABBEY WHICH SEES CONSIDERABLE SYNERGIES IN COMBINING THE TWO COMPANIES SAID ITS OFFER GREW OUT OF EIGHT MONTHS OF INITIATIVES FOR JOINT VENTURES OR A POSSIBLE ACQUISITION ABBEY RAISED ITS OFFER TO 2750 A SHARE LAST WEEK 9304080126 930408 WHO'S NEWS GLOBEX CHAIRMAN IS APPOINTED CHICAGO CHICAGO MERCANTILE EXCHANGE CHAIRMAN JOHN F SANDNER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF GLOBEX CORP WHICH RUNS THE GLOBEX AFTERHOURS ELECTRONIC FUTURES TRADING SYSTEM FORMER MERC CHAIRMAN LEO MELAMED STEPPED DOWN AS GLOBEX CHAIRMAN RECENTLY SAYING HE WANTED TO SPEND MORE TIME WORKING AT HIS OWN FUTURES TRADING FIRM GLOBEX A JOINT VENTURE BETWEEN THE MERC THE CHICAGO BOARD OF TRADE AND REUTERS HOLDINGS PLC LINKS TRADERS IN DIFFERENT COUNTRIES ON A SINGLE COMPUTERIZED FUTURES TRADING SYSTEM THE MERC AND CBOT OFFER THEIR MOST POPULAR FUTURES CONTRACTS ON THE SYSTEM INCLUDING FUTURES ON US TREASURY BONDS AND EURODOLLARS OR SHORTTERM INTEREST RATES 9304080125 930408 LETTERS TO THE EDITOR NOFAULT' MALPRACTICE IN YOUR MARCH 1 ARTICLE DOCTORS ARE SPURRING EFFORT TO REMEDY THE NATION'S AILING MALPRACTICE SYSTEM THERE WAS REFERENCE TO MY STATE OF VIRGINIA AND HOW WE HAD ADOPTED A NOFAULT MODEL PLAN FOR BRAINDAMAGED BABIES INDEED THIS FUND HAS GROWN TO 50 MILLION AND MORE DUE TO THE PARTICIPATION BY DOCTORS AND HOSPITALS HOWEVER THIS PLAN HAS YET TO DISPENSE ANY FUNDS THERE HAVE BEEN NO CLAIMS AGAINST IT IT WOULD SEEM THAT PATIENTS AND THEIR ATTORNEYS WOULD RATHER GO THROUGH THE USUAL TORT SYSTEM I THINK IT IS FAIR TO SAY AT LEAST IN THIS CASE THAT THE NOFAULT SYSTEM HAS NOT WORKED WHAT WE NEED IS REAL TORT REFORM 9304080124 930408 BUSINESS BRIEF SUN TELEVISION & APPLIANCES INC FIRM PLANS TO SPLIT STOCK IF SHARE RISE IS APPROVED SUN TELEVISION & APPLIANCES INC SAID IT PLANS TO SPLIT ITS STOCK IF SHAREHOLDERS APPROVE A PLAN TO INCREASE AUTHORIZED COMMON SHARES TO 30 MILLION FROM 10 MILLION THE COMPANY DECLINED TO BE MORE SPECIFIC THE COLUMBUS OHIO RETAILER'S BOARD HAS APPROVED THE PROPOSAL TO INCREASE SHARES AND HOLDERS WILL VOTE ON THE PLAN AT THE ANNUAL MEETING JUNE 29 SUN SAID THAT IN LIGHT OF THE CURRENT MARKET PRICE MEMBERS OF THE BOARD BELIEVE IT WOULD BE PRUDENT TO CONSIDER A STOCK SPLIT IN LATE NATIONAL OVERTHECOUNTER TRADING SUN'S STOCK WAS TRADING AT 3725 UP 1125 THE COMPANY HAS 85 MILLION SHARES OUTSTANDING 9304080123 930408 BUSINESS BRIEF BURLINGTON RESOURCES INC NATURAL RESOURCES FIRM POSTS OPERATING GAIN BUT NET FALLS BURLINGTON RESOURCES INC POSTED A 52 GAIN IN FIRSTQUARTER OPERATING PROFIT BUT NET PROFIT OF THE NATURAL RESOURCES COMPANY FELL NEARLY 28 FROM LAST YEAR RECORD NATURAL GAS AND CRUDE OIL SALES PUSHED OPERATING PROFIT TO 452 MILLION IN THE QUARTER UP FROM 297 MILLION A YEAR EARLIER THE SEATTLE COMPANY'S 1992 FIRSTQUARTER RESULTS ALSO INCLUDE INCOME FROM DISCONTINUED OPERATIONS OF 338 MILLION BOOSTING FINAL NET TO 635 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BURLINGTON SHARES CLOSED AT 4650 UP 625 CENTS 9304080122 930408 BUSINESS BRIEF SUNRISE TECHNOLOGIES INC COMPANY WILL POST DEFICIT OF 600000 FOR FIRST QUARTER SUNRISE TECHNOLOGIES INC SAID IT EXPECTS TO POST A LOSS FOR THE FIRST QUARTER OF 600000 THE FREMONT CALIF MAKER OF MEDICAL AND DENTAL LASER SYSTEMS SAID IT EXPECTED TO REPORT 3 MILLION IN REVENUE FOR THE PERIOD ENDED MARCH 31 A YEAR EARLIER THE COMPANY POSTED A LOSS OF 92 MILLION OR 125 A SHARE INCLUDING A 75 MILLION CHARGE TO ACQUIRE TECHNOLOGY ON REVENUE OF 500000 THE COMPANY SAID THE LATEST LOSS REFLECTED STARTUP COSTS FOR ADVERTISING AND SALES ON NEW DENTAL PRODUCTS AND DEVELOPMENT COSTS FOR A LASER DEVICE FOR EYE SURGERY 9304080121 930408 PANEL ON AIRLINES IS FORMED WASHINGTON PRESIDENT CLINTON SIGNED A BILL CREATING A BIPARTISAN COMMISSION TO DEVELOP A PLAN FOR THE NATION'S AILING AIRLINE INDUSTRY THE COMMISSION MAY FIND THAT SOME ANSWERS ARE IN A MORE AGGRESSIVE TRADE POLICY MR CLINTON SAID WHILE OTHER ANSWERS MAY COME FROM KEEPING THE GLOBAL MARKETPLACE FREER FROM UNFAIR COMPETITION THE PANEL CONSISTS OF 15 VOTING MEMBERS FIVE NAMED BY HOUSE LEADERS FIVE BY SENATE LEADERS AND FIVE BY THE PRESIDENT IT ALSO WILL HAVE 11 NONVOTING MEMBERS THEY ARE TO REPORT BACK WITHIN 90 DAYS THE INDUSTRY HAS HAD TO CUT BACK OPERATIONS GROUND JETLINERS AND CANCEL OR DELAY AIRCRAFT PURCHASES BECAUSE OF MORE THAN 10 BILLION IN LOSSES SINCE 1989 9304080120 930408 BUSINESS BRIEFS PEABODY HOLDING CO SAID ITS EASTERN ASSOCIATED COAL CORP SUBSIDIARY WILL CLOSE ITS KOPPERSTON NO 1 MINE IN WYOMING COUNTY W VA DUE TO DEPLETED RESERVES AND THE LOSS OF A MAJOR CUSTOMER TEXACO INC'S TEXACO SHANGHAI UNIT SIGNED AN AGREEMENT OF COOPERATION WITH SHANGHAI PETROLEUM CORP TO WORK ON THE DEVELOPMENT PLAN FOR THE PING HU OIL AND GAS FIELD IN THE EAST CHINA SEA EASTMAN KODAK CO SAID ITS EASTMAN CHEMICAL SUBSIDIARY PLANS TO BUILD A POLYETHYLENE TEREPHTHALATE PLANT IN SOUTHERN EUROPE STERLING BANCORP AND CONTINENTAL BANK OF GARDEN CITY NY SAID THEIR MERGER DISCUSSIONS WERE TERMINATED BY MUTUAL AGREEMENT INMAC CORP AGREED TO SELL ALL SHARES OUTSTANDING OF BUSINESS SUPERSTORE LTD A LONDON COMPUTER AND OFFICE EQUIPMENT CONCERN TO GLOBUS OFFICE WORLD PLC A UNIT OF GLOBUS AG TERMS WEREN'T DISCLOSED METROGOLDWYNMAYER INC COMPLETED THE ACQUISITION OF 65 MOVIE THEATERS IN THE UNITED KINGDOM FOR ABOUT 93 MILLION FROM ITS PARENT CREDIT LYONNAIS SA CCB FINANCIAL CORP AGREED TO ACQUIRE 10 BRANCHES OF FIRST HOME FEDERAL SAVINGS & LOAN IN GREENSBORO NC FOR 178 MILLION 9304080119 930408 HATCHBCCI INQUIRY WASHINGTON THE SENATE ETHICS COMMITTEE OPENED A PRELIMINARY INQUIRY INTO CONTACTS BETWEEN THE OFFICE OF SEN ORRIN HATCH AND AGENTS OF THE SCANDALRIDDEN BANK OF COMMERCE & CREDIT INTERNATIONAL THE UTAH REPUBLICAN REQUESTED THE INQUIRY IN AN INTERVIEW IN JANUARY HE SAID HE WOULD COOPERATE FULLY AND WOULD BE VINDICATED SEPARATELY THE THREETERM SENATOR REMAINS UNDER INVESTIGATION BY NEW YORK PROSECUTORS REVIEWING BCCI'S US ACTIVITIES THAT INQUIRY INCLUDES SEN HATCH'S EFFORTS TO OBTAIN A BCCI LOAN FOR A BUSINESS ASSOCIATE THE ETHICS PANEL ALSO SAID IT DROPPED ITS REVIEW OF ALLEGATIONS OF SEXUAL MISCONDUCT AGAINST SEN DANIEL INOUYE D HAWAII THE PANEL SAID IT CONCLUDED THAT NO FURTHER ACTION SHOULD BE TAKEN AFTER WITNESSES REFUSED TO COOPERATE 9304080118 930408 BUSINESS BRIEF DAIMLERBENZ AG ELECTRONICS UNIT REPORTS DOUBLING OF OPERATING LOSS AEG AG THE SEPARATELY TRADED ELECTRONICS DIVISION OF GERMANY'S DAIMLERBENZ AG WON'T REACH ITS LONGAWAITED TURNAROUND THIS YEAR THE FRANKFURT GROUP'S OPERATING LOSS ADJUSTED TO EXCLUDE ONETIME EXTRAORDINARY GAINS DOUBLED TO ABOUT 200 MILLION MARKS 1241 MILLION IN 1992 FROM 100 MILLION MARKS IN 1991 AEG CHAIRMAN ERNST GEORG STOECKL SAID DAIMLER GERMANY'S LARGEST INDUSTRIAL GROUP HAS PREDICTED A 25 TO 30 PLUNGE IN ITS FULLYEAR 1993 NET PROFIT FOLLOWING A 25 DROP IN 1992 9304080117 930408 BUSINESS BRIEF MERIDIAN DIAGNOSTICS INC JOHNSON & JOHNSON FIRM TO LICENSE A SCREENING TEST MERIDIAN DIAGNOSTICS INC CINCINNATI SAID IT AGREED TO LICENSE A URINARY TRACT INFECTION SCREENING TEST TO ADVANCED CARE PRODUCTS A DIVISION OF THE ORTHO PHARMACEUTICAL UNIT OF CONSUMER HEALTHCARE CONCERN JOHNSON & JOHNSON IF THE FOOD AND DRUG ADMINISTRATION APPROVES THE PLAN ADVANCED CARE WOULD SELL THE ONEMINUTE FILTRACHECKUTI TESTS DIRECTLY TO CONSUMERS FOR USE IN THE HOME MERIDIAN CURRENTLY SELLS THE TESTS TO HOSPITALS COMMERCIAL LABS AND DOCTORS' OFFICES MERIDIAN SAID THE LICENSING AGREEMENT REPRESENTS A SIGNIFICANT CONSUMER HEALTH CARE MARKETING OPPORTUNITY THE DIAGNOSTICS CONCERN ESTIMATES THAT 60 MILLION URINARY TRACT INFECTION SCREENINGS ARE PERFORMED BY PROFESSIONALS EACH YEAR 9304080116 930408 BUSINESS BRIEF LUKENS INC OPERATING PROFIT FELL SHORT OF ESTIMATES FOR 1ST PERIOD LUKENS INC BLAMING LOW STEEL PRICES SAID FIRSTQUARTER OPERATING EARNINGS WERE SHORT OF ANALYSTS' ESTIMATES THE COATESVILLE PA STEELMAKER SAID IT EXPECTS TO POST EARNINGS OF 35 CENTS TO 40 CENTS A SHARE BEFORE ACCOUNTING CHANGES COMPARED WITH NET INCOME OF 52 MILLION OR 38 CENTS A SHARE RESTATED TO INCLUDE A PUBLIC OFFERING AND 3FOR2 STOCK SPLIT IN THE YEAREARLIER PERIOD ANALYSTS HAD EXPECTED 62 CENTS A SHARE THE QUARTER ALSO WILL INCLUDE ADJUSTMENTS RELATED TO THE WAY THE COMPANY ACCOUNTS FOR RETIREE HEALTH BENEFITS AND INCOME TAXES WITH THAT THE COMPANY SHOULD REPORT A LOSS OF 55 MILLION TO 60 MILLION OR 4 A SHARE MOST OF THE STEEL SHIPPED BY THE COMPANY'S LUKENS STEEL GROUP DURING THE QUARTER WAS ORDERED BEFORE A JAN 4 PRICE INCREASE RW VAN SANT CHAIRMAN AND CHIEF EXECUTIVE SAID IN A STATEMENT LUKENS EXPECTS TO REPORT FIRSTQUARTER EARNINGS APRIL 13 9304080115 930408 GAMBLING IN NORTH AMERICA BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAULINE YOSHIHASHI GAMBLING AT HOME MAY PROVE TO BE LUCRATIVE BUT PROBLEMS ABOUND ADVOCATES OF INHOME BETTING SUCH AS INTERACTIVETELEVISION ENTREPRENEURS EYE ARMCHAIR GAMBLERS WHO WOULD USE TV TELEPHONE OR VIDEOGAME TECHNOLOGY TO PLACE BETS SO FAR ONLY HORSE RACING HAS MUCH SUCCESS DUE MAINLY TO ITS FAMILIARITY AND PROMOTING BY TRACKS WHERE ATTENDANCE HAS SLUMPED OTHER EFFORTS FALTER THE MASSACHUSETTS LOTTERY DROPPED A WAGERBYPHONE PLAN AFTER PEOPLE BALKED AT THE HIGH COST EACH 1 TICKET COST AN ADDITIONAL 95 CENTS MEANWHILE A TEAM OF STATE LOTTERY CHIEFS QUIETLY ENDED PLANS TO MARKET A SYNDICATED TV SHOW TIED TO LOTTERY SALES AND A 1991 PROPOSAL BY MINNESOTA TO LINK NINTENDOGAME TECHNOLOGY TO LOTTERY SALES ENDED AMID CRITICISM OF USING A TOY TO GAMBLE THE STUMBLING BLOCKS FOR INTERACTIVETV GAMBLING SECURITY COLLECTION OF MONEY UNAUTHORIZED ACCESS BY MINORS AND CONSUMER AND POLITICAL BACKLASH BUT INTERACTIVETV FIRMS LIKE NTN COMMUNICATIONS SEE GROWTH WHERE IT'S LEGAL GAMBLING WILL BE A PART OF INTERACTIVE TV SAYS DAN DOWNS AN OFFICIAL OF NTN IN CALIFORNIA LOTTERIES ARE GOING GREEN WITH RECYCLABLE INSTANT TICKETS STATE LOTTERIES AND TICKET MAKERS PUSH FOR BIODEGRADABLE INSTANT GAMES TO REPLACE TRADITIONAL FOIL SCRATCHOFF TICKETS IN AN EFFORT TO HEAD OFF ANY ANTILITTER LAWS THE MAINE LOTTERY WILL BE AMONG THE FIRST TO USE THE BIODEGRADABLES WHICH COST 19 CENTSATHOUSAND MORE THE LOTTERY IS CONSCIOUS OF THE ENVIRONMENT AND PLANS TO TRANSFER ALL ITS INSTANT GAMES TO THE NEW TICKETS SAYS PAMELA COUTTS A MAINE LOTTERY OFFICIAL THE PLAIN PAPER SCRATCHOFF TICKETS ARE MADE BY SCIENTIFIC GAMES INC GEORGIA THE FIRM SAYS IT TOOK TWO YEARS OF RESEARCH TO PRODUCE THE TICKETS WHICH ARE PRINTED ON RECYCLED CARD STOCK INDUSTRY OFFICIALS SAY ABOUT SIX BILLION GAME TICKETS HIT GARBAGE DUMPS OR INCINERATORS EACH YEAR ONEARMED BANDITS GAIN FAVOR OVER TABLE GAMES EVEN AT HIGHROLLER DENS SLOT MACHINES ARE GOBBLING UP RECORD AMOUNTS OF COIN ABETTED BY RECREATIONAL PLAYERS AT THE TOP 14 LAS VEGAS STRIP RESORTS SLOT REVENUE HIT 9667 MILLION IN THE YEAR ENDED JUNE 30 OR 486 OF THE MARKET COMPARED WITH 102 BILLION IN TABLE GAME REVENUE OR 514 THAT'S THE SLIMMEST GAP SINCE 1987 WHEN NEVADA'S GAMING CONTROL BOARD BEGAN KEEPING SUCH STATISTICS SLOTMACHINE REVENUE THEN ACCOUNTED FOR 402 OF THE MARKET AND THE TABLE HAUL WAS 598 LAS VEGAS OPERATORS LIKE THE MIRAGE CASINO AND CAESARS PALACE BLAME THE WEAKER TABLEGAME RESULTS ON FEWER FOREIGN BIG SPENDERS NOTABLY FROM ASIA MEANWHILE IN ATLANTIC CITY NJ AS IN NEVADA AS A WHOLE SLOT EARNINGS FAR OUTSTRIP THE HAUL FROM GAMBLING TABLES IN 1992 ATLANTIC CITY CASINO SLOT PROCEEDS MADE UP 655 OF TOTAL REVENUE UP FROM 618 IN '91 DISPARITIES ARE SHARPER IN NEW GAMBLING VENUES SUCH AS RIVERBOAT CASINOS THE RATIO IN MOST NEW VENUES IS 75 SLOT AND 25 TABLES SAYS RAYMOND JAMES & ASSOCIATES A FLORIDA FIRM ABOUT 48 OF TEXANS HAVE HAD SERIOUS GAMBLING PROBLEMS AND 25 CURRENTLY SUFFER SUCH ILLS SAYS A SURVEY BY THE STATE COMMISSION ON ALCOHOL AND DRUG ABUSE THE SURVEY IS THE FIRST BY A STATE TO STUDY GAMBLING AND MENTALHEALTH ISSUES CANADA TOO SEES A GAMBLING EXPLOSION IN ADDITION TO MAINSTAYS BINGO AND LOTTO VIDEOLOTTERY TERMINALS ARE NOW LEGAL IN SIX PROVINCES OR TERRITORIES WITH MORE TO COME THE SOLE NONCHARITY CASINO IN WINNIPEG WILL SOON BE JOINED BY FORPROFIT CASINOS IN WINDSOR AND MONTREAL BUYER BEWARE AS LOTTERY JACKPOTS SWELL SUCH AS RECENT POTS IN FLORIDA ILLINOIS AND CALIFORNIA BROKERS PEDDLE STATE AND FOREIGN LOTTERY TICKETS NATIONWIDE VIA MAIL AND PHONE BUT THE US POSTAL SERVICE WARNS THAT PROMOTING AND SELLING THE GAMES BY MAIL WITH A FEW EXCEPTIONS IS ILLEGAL GAMBLING REVENUE CAN HELP A REGION'S CASH NEEDS BUT MAYBE NOT ITS CREDIT AS STATES AND MUNICIPALITIES RUSH FOR GAMBLING DOLLARS STANDARD & POOR'S SAYS AN AUTOMATICALLY IMPROVED CREDIT RATING ISN'T A SURE BET WHILE CASINO GAMBLING HELPED BOOST LAS VEGAS'S CLARK COUNTY GENERALOBLIGATIONBOND RATING TO SINGLEAPLUS FROM SINGLEA IN 1987 GAMBLING HAS HAD A NEUTRAL EFFECT ON ATLANTIC CITY'S RATINGS ITS BONDS ASSIGNED A SINGLEAMINUS RANK IN 1983 HAVE REMAINED THERE FOR A DECADE DESPITE A STEADY CLIMB IN GAMBLING REVENUE ROBERT DURANTE AN S&P OFFICIAL SAYS THE AGENCY WEIGHS SEVERAL FACTORS SUCH AS SUSTAINABILITY OF GAMBLING REVENUES AND POTENTIAL COMPETITION SUCH AS A NATIVE AMERICAN CASINO OPENING IN A NEARBY STATE S&P ALSO EVALUATES MARKET SATURATION AND MATURATION OF GAMES IN POLK COUNTY IOWA THE RATING WAS LOWERED TO DOUBLEA FROM TRIPLEA MOSTLY BECAUSE OF SUBSIDIES FOR A COUNTYOWNED RACETRACK THE RATING OF DAVENPORT IOWA WAS RAISED IN 1992 TO REFLECT AN EXPANDED ECONOMY DUE TO NEW RIVERBOAT CASINOS BRIEFS CELEBRITIES ARE IN THE CHIPS AT CAESARS ATLANTIC CITY WHERE 5 CHITS BEAR IMAGES OF SHOWROOM STARS LIKE GEORGE BURNS RAY CHARLES AND ANNMARGRET THE FLAMINGO HILTON LAUGHLIN OFFERS A CHANCE TO BEAT THE HOUSE AND WIN ONE TOO BY OFFERING A RESORT HOME AS A PRIZE 9304080114 930408 INTERNATIONAL EXPLOSION CAUSES RADIATION LEAK AT SIBERIAN NUCLEAR FUEL FACILITY CONTAMINATION IS LIMITED MOSTLY TO PLANT AREA NO INJURIES REPORTED BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW A VAT CONTAINING URANIUM EXPLODED TUESDAY AT A SECRET NUCLEAR FUEL PLANT IN SIBERIA CONTAMINATING AN UNDETERMINED AREA OF LAND AND HIGHLIGHTING ONCE MORE RUSSIA'S TROUBLED NUCLEAR INDUSTRY WHICH HAS SUFFERED A SPATE OF ACCIDENTS IN THE PAST YEAR RUSSIAN OFFICIALS SAY RADIATION LEVELS ARE LOW AND THAT THERE HAVE BEEN NO INJURIES THE RUSSIAN MINISTRY OF NUCLEAR ENERGY NOTED THAT THE EXPLOSION AT THE TOMSK7 CHEMICAL PLANT RATED A THREE ON A SEVENPOINT SCALE OF NUCLEAR EMERGENCIES MINISTRY SPOKESMAN SERGEI YERMAKOV SAID THE EXPLOSION WAS A SERIOUS INCIDENT BUT DISMISSED COMPARISONS TO THE 1986 CHERNOBYL NUCLEAR PLANT DISASTER IN UKRAINE ABOUT 80 MILLION CURIES OF RADIOACTIVITY WERE RELEASED AT CHERNOBYL MR YERMAKOV TOLD A NEWS CONFERENCE IN MOSCOW YESTERDAY HERE WE DO NOT HAVE A SINGLE CURIE SINCE LAST YEAR NUCLEAR ACCIDENTS IN THE FORMER SOVIET UNION HAVE BEEN FREQUENT IN MARCH 1992 A REACTOR AT SOSNOVY BOR ABOUT 75 MILES FROM ST PETERSBURG LEAKED RADIOACTIVE INERT GASES AND IODINE INTO THE AIR THE REACTOR WAS SIMILAR TO THE ONE AT CHERNOBYL IN FEBRUARY 1993 TWO SMALL FIRES AND AN OIL LEAK OCCURRED AT WHAT IS LEFT OF THE CHERNOBYL PLANT ONE OF THREE NUCLEARWASTE PROCESSING PLANTS IN RUSSIA THE TOMSK7 FACILITY HAS HAD PREVIOUS MISHAPS IN 1990 THE COMPLEX WAS BLAMED FOR CONTAMINATION OF A NEARBY RIVER WHICH LED TO THE HOSPITALIZATION OF AT LEAST 38 PEOPLE THE ASSOCIATED PRESS REPORTED THE DANGER OF NUCLEAR ACCIDENTS WILL UNDOUBTEDLY GROW UNLESS RUSSIA REVERSES ITS ECONOMIC TAILSPIN EQUIPMENT IS AGING AND NUCLEAR PLANTS LACK THE FUNDS TO UPDATE THEIR EQUIPMENT THE EXPLOSION OCCURRED AT ABOUT 1 AM TUESDAY AT THE FACILITY WHICH IS BELIEVED TO BE ABOUT 15 MILES FROM THE WESTERN SIBERIAN CITY OF TOMSK TOMSK7 IS ONE OF THE SECRET MUNITIONS FACTORIES BUILT IN RUSSIA DURING THE COLD WAR THAT STILL DON'T APPEAR ON MAPS THE OFFICIAL NEWS AGENCY ITARTASS SAID THE COMPLEX FORMERLY PRODUCED WEAPONSGRADE PLUTONIUM BUT IT SAID NO PLUTONIUM WAS RELEASED TUESDAY DURING WHAT SHOULD HAVE BEEN A ROUTINE WASTE PURIFICATION PROCEDURE AT TOMSK7 NITRIC ACID WAS ADDED TO A TANK OF URANIUM IN AN UNDERGROUND CHAMBER RUSSIAN OFFICIALS WHO DIDN'T DISCLOSE WHAT PHYSICAL STATE OF URANIUM WAS INVOLVED SAID THE PROCESS IS CLOSELY MONITORED AND THAT THE CHEMICAL REACTION TRIGGERS A TEMPERATURE INCREASE IN THE VAT THIS TIME THE TANK EXPLODED APPARENTLY SHORTCIRCUITING THE PLANT'S ELECTRICAL SYSTEMS AND IGNITING A FIRE ON THE ROOF OF THE CHAMBER AFTER THE EXPLOSION OFFICIALS AT THE COMPLEX CONTACTED AUTHORITIES IN MOSCOW A FULL HOUR ELAPSED BEFORE TOMSK CIVIL DEFENSE OFFICIALS WERE INFORMED OF THE INCIDENT ACCORDING TO A TOMSK CIVIL DEFENSE OFFICER WHO DECLINED TO GIVE HIS NAME NO ONE HAS BEEN EVACUATED FROM TOMSK7 OR THE NEIGHBORING CITY HE SAID AS LOCAL OFFICIALS WERE TOLD THERE WAS NO RISK OF CONTAMINATION THE NUCLEAR ENERGY MINISTRY SAID ALMOST ALL CONTAMINATION FROM THE EXPLOSION AFFECTED AN AREA OF ONLY 1000 SQUARE METERS 1200 SQUARE YARDS WITHIN THE COMPLEX AND THAT MOST OF THE SNOW AND TOPSOIL IN THE AREA HAD BEEN HAULED AWAY BUT A SPOKESMAN SAID TWO SMALL CONTAMINATED AREAS WERE FOUND SIX MILES FROM THE PLANT WHERE RADIATION LEVELS WERE 10 TIMES BACKGROUND LEVELS THOUGH STILL SAFE HOWEVER BY LATE YESTERDAY REPORTS FROM THE RUSSIAN MINISTRY OF ECOLOGY SEEMED TO CONTRADICT EARLIER MORE SANGUINE APPRAISALS OF THE EXPLOSION OFFICIALS OF THE ECOLOGY MINISTRY SAY THAT CONTAMINATION WAS FOUND IN OTHER AREAS AND THAT A RADIOACTIVE CLOUD IS MOVING OVER UNPOPULATED REGIONS A PRESIDENTAL AIDE ON ECOLOGY ALEXANDER YAKOVLEV TOLD ITARTASS THAT HE BELIEVES 2500 ACRES HAVE BEEN CONTAMINATED FOREVER AND THAT HE DIDN'T RULE OUT THAT SIMILAR ACCIDENTS MAY RECUR IN RUSSIA 9304080113 930408 BUSINESS BRIEF FIRST VIRGINIA BANKS INC FIRSTPERIOD NET ROSE 36 LOANLOSS PROVISIONS FELL FIRST VIRGINIA BANKS INC EARNINGS JUMPED 36 IN ITS FIRST QUARTER HELPED BY A HIGH NET INTEREST MARGIN GROWTH IN CONSUMER LOANS AND STRONGER ASSET QUALITY THE REGIONAL BANK HOLDING COMPANY BASED IN FALLS CHURCH VA REPORTED EARNINGS OF 291 MILLION OR 90 CENTS A SHARE A YEAR EARLIER EARNINGS WERE 215 MILLION OR 67 CENTS A SHARE NET INTEREST INCOME ROSE 157 TO 85 MILLION WHILE PROVISIONS FOR LOAN LOSSES FELL TO 22 MILLION FROM ALMOST 4 MILLION ROBERT H ZALOKAR CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID NET LOAN CHARGEOFFS DROPPED TO A RECORD LOW IN THE FIRST QUARTER AND PASTDUE LOANS AND NONPERFORMING ASSETS CONTINUED TO DECLINE TOTAL ASSETS STOOD AT 684 BILLION UP 4 FROM THE PREVIOUS YEAR FIRST VIRGINIA BANKS'S SHARES ROSE 875 CENTS YESTERDAY TO 3775 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9304080112 930408 LEISURE & ARTS THE RIACE BRONZES RUSTY GIFTS FROM THE SEA BY JOHN PERROTTA REGGIO CALABRIA ITALY HE LIES NAKED SILENT WIDEEYED ON THE OPERATING TABLE BRIGHT LIGHTS BEAR DOWN UPON HIM A WIRE RUNS FROM HIS HEAD AND NEAR HIS FOOT IS A LONG METAL ENDOSCOPIC PROBE LINKED TO A TELEVISION MONITOR A WHITECOATED MAN PUSHES THE PROBE THROUGH A HOLE IN THE SOLE OF HIS FOOT AND UP INTO HIS LEG THE ILLUMINATED INSIDE OF HIS KNEE APPEARS IN VIVID COLORS ON THE TV SCREEN HALFFILLED SPECIMEN JARS AND SURGICAL SCISSORS LIE NEARBY THE ANALOGIES TO THE HIGHTECH MEDICINE OF THE OPERATING ROOM ARE MORE THAN MERELY POETIC IN THIS THE SECOND SIGNIFICANT RESTORATION OF THE TWO SOCALLED RIACE BRONZES WHICH DEPICT TWO FIFTH CENTURY BC CLASSICAL GREEK MEN IN FACT MUCH OF THE TECHNOLOGY USED BY DOCTORS INCLUDING ENDOSCOPIC KEYHOLE SURGERY WITH TV MONITORS IS BEING USED IN THIS RESTORATION TO A DEGREE NEVER BEFORE SEEN IN THE ART WORLD SAY THE RESTORERS AND ADVISERS AT WORK HERE ONE OF WHICH IS A SURGEON WORK BEGAN RECENTLY AT THE NATIONAL MUSEUM OF REGGIO CALABRIA IN THE TOE OF ITALY'S BOOTSHAPED PENINSULA NOT FAR FROM THE TOWN OF RIACE MARINA ON THE IONIAN SEA OUT OF WHOSE WATERS THE STATUES WERE FISHED IN 1972 THE MUSCULAR BEARDED PATIENT DUBBED STATUE B LOOKS THE IMAGE OF HEALTH WITH THE REMAINS OF A SHIELD STILL ATTACHED TO ITS POISED LEFT ARM BUT ITS INSIDE SURFACE IS CAKED WITH CLAY DEPOSITS FROM THE ORIGINAL CASTING PLUS MINERAL AND BIOLOGICAL DEPOSITS FROM ITS 2400YEAR SLUMBER IN THE SEA LEFT UNDISTURBED THOSE DEPOSITS WILL CORRODE STATUE B AND ITS SEABOTTOM MATE STATUE A WHOSE TURN ON THE OPERATING TABLE IS NEXT EACH BRONZE IS ABOUT SIX FEET TALL AND WEIGHS 550 POUNDS UNTIL RECENTLY RESTORERS WERE AT LOSS AS TO HOW TO REMOVE THE THREATENING ACCUMULATIONS WITHOUT BREAKING APART THE STATUES ENTER FINMECCANICA SPA OF THE SPRAWLING STATE HOLDING COMPANY IRI UNDER THE TERMS OF AN ACCORD SIGNED LAST SPRING WITH ITALY'S CULTURAL PROPERTIES MINISTRY FINMECCANICA IS FUNDING THE 800000 RESTORATION AND OFFERING TECHNOLOGICAL KNOWHOW EXPECTED DATE OF COMPLETION SOMETIME IN 1994 THE HEART OF THIS HYPERMODERN RESTORATION OF ANCIENT TREASURES IS THE ENDOSCOPIC PROBE WHICH WAS PERFECTED THROUGH TRIAL AND ERROR ON DUMMY SCULPTURES IT EMITS ULTRASOUND WAVES THAT LOOSEN THE DEPOSITS THE REMAINING PATINA OF DEPOSIT THAT NEAREST THE INNER SURFACE OF THE BRONZES IS THEN BRUSHED OFF ALL OF THE DETRITUS IS VACUUMED AWAY ABOUT 80 POUNDS OF DEPOSITS WILL BE REMOVED FROM EACH STATUE THE PROBE ALSO CONTAINS TWO TINY VIDEO CAMERAS ONE FOR PANORAMIC VIEWS OF THE CAVERNOUS INSIDES THE OTHER FOR CLOSEUPS IN ADDITION TO PASSING THROUGH THE FEET THE PROBE WILL ENTER OTHER ORIFICES INCLUDING THE HOLE LEFT BY STATUE B'S MISSING EYE AND A HOLE IN STATUE A'S HEAD ABOVE THE NAPE OF ITS NECK TECHNICIANS ARE DEVELOPING A SEPARATE FLEXIBLE PROBE TO REACH AROUND BENDS IN THE LEGS AND ARMS ALL OF THIS IS TAKING PLACE IN FULL VIEW OF THE PUBLIC THE RESTORATION LABORATORY IS SITUATED AT THE FAR END OF THE SAME ROOM IN WHICH THE BRONZES HAVE BEEN DISPLAYED SINCE 1981 A FLIGHT OF STEPS LEADS TO A PLATFORM ABOVE FROM WHICH VISITORS CAN OBSERVE THE RESTORERS OPERATING ON THEIR SUPINE PATIENTS THIS IS NOT THE FIRST TIME THAT FINMECCANICA HAS PRACTICED THE RESTORATION OF BRONZE ARTWORKS IT HELPED DEVELOP A PROTECTIVE VARNISH FOR THE MARCUS AURELIUS EQUESTRIAN STATUE THAT UNTIL RECENTLY STOOD ATOP CAPITOLINE HILL IN ROME NOW THE COMPANY IS HELPING RESTORE ROME'S CHURCH OF SANTA MARIA DELLA PACE FOR THE CONSERVATORS THE MOST INTERESTING PART OF THE RIACE RESTORATION MAY BE THE DEPOSITS THEMSELVES WHICH ARE BEING STUDIED FOR WHAT THEY MAY REVEAL ABOUT ANCIENT CASTING AND SOLDERING TECHNIQUES EACH STATUE FOR EXAMPLE IS MADE OF ABOUT 15 SEPARATELY CAST MAJOR PIECES THAT WERE WELDED TOGETHER THE PIECES ARE MADE OF THE CLASSIC FORMULA FOR BRONZE ALLOY ABOUT 90 COPPER AND 10 TIN THEY ALSO CONTAIN TRACES OF LEAD SILVER ZINC AND IRON BUT SO FAR THE CONSERVATORS ARE DISAPPOINTED NOT TO HAVE TURNED UP NEW EVIDENCE THAT MIGHT HELP CLEAR UP THE BASIC MYSTERY SURROUNDING THE TWO STATUES WHERE DID THEY COME FROM WHO DO THEY REPRESENT WHO SCULPTED THEM NONE OF THESE QUESTIONS MAY EVER GET A SATISFACTORY ANSWER SOME BASIC FACTS ARE NEVERTHELESS CERTAIN THERE IS ALMOST NO DISPUTE OVER THE STATUES' AGES A WAS EXECUTED AROUND 460 BC TO 450 BC AND B AROUND 430 BC TO 410 BC BOTH ARE ATTRIBUTED TO THE ATTIC SCHOOL THE SCHOOL OF ATHENS MOST SCHOLARS CONNECT THE SCULPTURES WITH THE GREAT ATHENIAN MASTER PHIDIAS AND IN THE CASE OF B THEY MENTION PHIDIAS' STUDENT ALCAMENES FROM HERE OPINIONS DIVERGE SOME SCHOLARS BELIEVE THE STATUES REPRESENT HEROES WHILE OTHERS SAY THEY ARE VICTORS IN AN ARMED CONTEST THE GREEK ARCHAEOLOGIST GEORGIOS DONTAS SAYS THEY ARE TWO ELEMENTS OF A STATUARY COMPLEX EXECUTED BY SEVERAL ARTISTS FOR THE FIRST MONUMENT DEDICATED BY THE ATHENIAN LEADER PERICLES FOR THE CITY'S CENTRAL MARKET AND MEETING PLACE OR AGORA TO COMMEMORATE THE VICTORY OF THE ATHENIANS OVER THE PERSIANS AT MARATHON THE BRONZES WERE DISCOVERED BY AN AMATEUR SCUBA DIVER STEFANO MARIOTTINI IN WATERS ABOUT 300 FEET FROM THE COAST OF RIACE HE SAW THE SHOULDER OF ONE OF THE STATUES PROTRUDING FROM THE SANDY SEA BOTTOM AND AT FIRST THOUGHT IT WAS A CADAVER THEN I TOUCHED IT HE RECOUNTS IT WAS MADE OF A HARD SUBSTANCE NEARBY THE KNEE OF THE OTHER STATUE WAS STICKING OUT HE IMMEDIATELY NOTIFIED THE CALABRIAN REGIONAL SUPERINTENDENT OF ARCHAEOLOGY EXAGGERATING THE DISTANCE FROM THE SHORE TO 1000 FEET TO DISCOURAGE AMATEUR TREASURE SEEKERS AFTER REPEATED RECONNAISSANCE DIVES NEITHER MR MARIOTTINI NOR ANYONE ELSE HAS COME UP WITH DECISIVE EVIDENCE POINTING TO HOW THE BRONZES ENDED UP IN THE WATER DIVERS HAVE FAILED TO BRING UP THE MISSING HELMET OF B WHOSE HEAD CLEARLY BORE ONE THE FEW ITEMS FOUND NEARBY A MODEST PIECE OF KEEL LEAD RINGS CLAY FRAGMENTS HAVE NOTHING THAT LINKS THEM TO THE STATUES OR TO A COMMON SHIPWRECK IN FACT SCHOLARS ARE NOT SURE IF THERE EVEN WAS A SHIPWRECK IT IS POSSIBLE THAT THE BRONZES WERE TOSSED OVERBOARD TO LIGHTEN A VESSEL'S CARGO WHEN THEY WERE BEING TRANSPORTED FROM GREECE TO ROME AND OTHER PARTS OF THE ITALIAN PENINSULA AS PART OF THE ANCIENT TRADE IN ANTIQUITIES OR THEY MAY HAVE BEEN WASHED AWAY FROM THE SHORE IN A CATASTROPHIC STORM AT ANY RATE THEY HAVE FOUND A SAFE RESTING PLACE AT LAST AND IT DOES NOT LOOK AS IF THEY WILL BE TRAVELING SOON AGAIN EVEN TO OTHER MUSEUMS BECAUSE OF THEIR FRAGILITY IN 1981 AFTER THE FIRST MAINLY EXTERNAL RESTORATION THEY WERE BRIEFLY DISPLAYED IN FLORENCE AND AT THE PALACE OF THE PRESIDENT OF ITALY ON QUIRINAL HILL IN ROME BEFORE THEY WERE BROUGHT PERMANENTLY HERE A LOAN REQUEST FROM THE 1984 LOS ANGELES OLYMPIC GAMES WAS REFUSED REGGIO CALABRIA WAS CHOSEN AS THE STATUES' PERMANENT HOME ONLY AFTER MUCH DEBATE THE REGION SAID IT DESERVED THEM BECAUSE THEY WERE FOUND IN LOCAL WATERS THE NATIONAL MUSEUM HERE HOPES THEY WILL BE A MAGNET FOR TOURISM IN THIS REMOTE AND NEGLECTED AREA OF THE COUNTRY CALABRIA IS NOW BEST KNOWN FOR ITS KIDNAPPING INDUSTRY AND FOR THE ORGANIZED CRIME NETWORK CALLED NDRANGHETA' OR ROBBER IN THE REGIONAL DIALECT THE SPLENDOR OF THE REGION'S CLASSICAL ANTIQUITIES DOES NOT GENERATE AS MANY HEADLINES AS THE FELONIOUS ACTS OF ITS LEGENDARY BANDITS THE BRONZE STATUES FROM THE SEA SEEMED AT THE START TO BE SHIFTING THE BALANCE IN THEIR FIRST YEAR AT THE NATIONAL MUSEUM THE NUMBER OF VISITORS TO THE MUSEUM ROCKETED TO 700000 AND MUSEUM GUARDS WERE INCREASED TO 100 FROM 60 BUT AFTER THAT YEAR ATTENDANCE SLID TO 146000 IN 1986 AND 79000 LAST YEAR THE LOWEST IN AT LEAST A DECADE THE BRONZES OF RIACE QUIPPED AN ITALIAN JOURNALIST IN THE COMMUNIST DAILY IL MANIFESTO HAVE SUNK FOR A SECOND TIME INTO THE WATERS OF OBLIVION MR PERROTTA IS AN AMERICAN JOURNALIST IN ROME 9304080111 930408 INTERNATIONAL A GENERATION GAP IS WIDENING IN ISRAEL AS AGES REACT DIFFERENTLY TO VIOLENCE BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM WHEN A LONE PALESTINIAN STABBED FIVE TEENAGERS AND THEIR PRINCIPAL AT A HIGH SCHOOL IN JERUSALEM PRIME MINISTER YITZHAK RABIN CRITICIZED THE STUDENTS FOR RUNNING AWAY INSTEAD OF ATTEMPTING TO STOP THE KNIFEWIELDING ATTACKER THE PRIME MINISTER URGED STUDENTS TO GET HANDTOHAND COMBAT TRAINING ISRAELIS HE SAID MUST RETURN TO BEING A FIGHTING NATION IN ONE SPEECH THE 70YEAROLD MR RABIN SAID I BELONG TO THE GENERATION OF 1948 REFERRING TO THE GENERATION OF YOUNG PEOPLE WHO FOUGHT UNDERGROUND FOR THE ESTABLISHMENT OF ISRAEL IN THE COUNTRY'S WAR OF INDEPENDENCE IF WE WERE OF TODAY'S KIND I'M NOT SURE THE COUNTRY WOULD HAVE BEEN ESTABLISHED ONE TERRORIST WITH A KNIFE CAN RUN IN THE CITY STREETS OF ISRAEL AND STAB PEOPLE WHERE IS THE ISRAELI PUBLIC ANSWERS TO MR RABIN'S QUESTIONS CAN BE FOUND IN PART AT THE CANION JERUSALEM THE MIDDLE EAST'S LARGEST SHOPPING MALL WHICH OPENED ONLY A FEW DAYS BEFORE THE LATE MARCH TERRORIST ATTACK AT THE HIGH SCHOOL THE 80 MILLION CANION CONTAINS 196 SHOPS AN EIGHTSCREEN MOVIE THEATER AND A FASTFOOD SECTION WITH A GOOD VIEW OF THE JUDEAN HILLS THE MALL ALSO OFFERS A GLIMPSE OF THE ISRAEL OF MR RABIN'S GRANDCHILDREN A GENERATION WHOSE SELFIMAGE AND VALUES DIFFER MARKEDLY FROM HIS OWN WHAT DOES RABIN WANT FROM US ASKED ONE 16YEAROLD BOY WORKING THE COSTUME JEWELRY COUNTER AND SPORTING TWO SILVER HOOPS DANGLING FROM HIS EAR AND BLOND BANGS FALLING OVER HIS EYES YOU CAN'T COMPARE THE TWO GENERATIONS TODAY KIDS IN ISRAEL ARE LIKE KIDS IN AMERICA OR ANYWHERE ELSE IN THE WORLD WE LIKE DISCOS PLAYING BASKETBALL AND GOING TO THE MALL WE'RE NOT INTERESTED IN LEARNING HANDTOHAND COMBAT FIFTEEN ISRAELIS HAVE BEEN KILLED IN ATTACKS IN RECENT WEEKS ONE OF THE HIGHEST DEATH TOLLS SINCE THE OUTBREAK OF THE PALESTINIAN INTIFADA OR UPRISING FIVE YEARS AGO IN RESPONSE TO THE RECENT VIOLENCE IN WHICH 26 PALESTINIANS ALSO HAVE BEEN KILLED THE ISRAELI GOVERNMENT BARRED ARABS LIVING IN THE OCCUPIED TERRITORIES FROM ENTERING ISRAEL AT LEAST THROUGH THE PASSOVER HOLIDAYS THIS WEEK WITH MIDEAST PEACE TALKS SET TO RESUME THIS MONTH THE RABIN GOVERNMENT HAS TO COPE WITH PUBLIC ANGER AND DESPAIR OVER THE ALMOST DAILY SHOOTINGS AND STABBINGS DEMONSTRATORS GATHER REGULARLY OUTSIDE MR RABIN'S HOME DEMANDING THE PRIME MINISTER'S RESIGNATION AND THE RIGHTWING OPPOSITION HAS CALLED ON THE GOVERNMENT TO DECLARE A STATE OF EMERGENCY IN ADDITION TO THE CLOSURE OF THE WEST BANK AND THE GAZA STRIP SOLDIERS AND OTHER SECURITY PERSONNEL ARE NOW AUTHORIZED TO SHOOT ARMED PALESTINIANS EVEN IF THEY DON'T ACTUALLY THREATEN TO OPEN FIRE AND MORE ARMY UNITS ARE BEING DEPLOYED IN THE OCCUPIED TERRITORIES IN SPEECHES ATTEMPTING TO RALLY PUBLIC MORALE MR RABIN FREQUENTLY HARKENS BACK TO THE ZIONIST ETHOS OF AN EARLIER ERA WHEN ISRAEL STILL WAS SHAPED BY SPARTAN PIONEERING VALUES RATHER THAN THOSE OF THE MODERN WESTERN CONSUMER PARAMILITARY TRAINING PROGRAMS FOR HIGH SCHOOL STUDENTS WHICH HAD BEEN SEVERELY CUT BACK IN THE PAST WILL BE REINTRODUCED AFTER PASSOVER YOUTHS AGED 16 17 AND 18 MUST TAKE PART WHEN IT'S A CASE OF DEFENDING THE SCHOOL EVEN WITH STICKS IF NECESSARY WE'VE DONE SO IN THE PAST THERE'S NO REASON NOT TO DO SO NOW SAID MR RABIN THE PRIME MINISTER'S APPARENT SURPRISE AT THE REACTION OF ISRAELI YOUTH TO THE CURRENT WAVE OF TERROR ILLUSTRATES THE TENSIONS MARKING A SOCIETY WHOSE NEW LEVEL OF AFFLUENCE HAS APPARENTLY COME AT THE EXPENSE OF SOME OF THE MORE TRADITIONAL ZIONIST NOTIONS I THINK THE PRIME MINISTER WAS SLIGHTLY DISAPPOINTED WITH THE FACT THAT TEENAGERS AGED 16 TO 18 MADE COMMENTS WHICH COULD BE INTERPRETED AS IF THEY EXPECT THAT EVERYTHING WILL BE DONE FOR THEM AS IF THEY AREN'T PART OF THE GENERAL EFFORT AGAINST TERRORISM SAID GAD BENARI MR RABIN'S MEDIA ADVISER REFLECTING ON THE PRIME MINISTER'S CRITICISM AFTER THE STABBINGS AT THE HIGH SCHOOL YITZHAK RABIN AND HIS GENERATION PREACH SELFSACRIFICE BUT LIVE IN THE BEST NEIGHBORHOODS IN ISRAEL AND DRIVE POSH CARS WITH CELLULAR TELEPHONES SAYS YOSSI MELMAN 42 WHOSE BOOK THE NEW ISRAELIS CHRONICLES THE NEW GENERATION THE TEENAGERS SEE THIS AND THEIR VALUES REFLECT IT SITTING IN A COFFEE HOUSE IN RAMAT AVIV MR MELMAN SAYS THIS AFFLUENT BEDROOM COMMUNITY OUTSIDE TEL AVIV IS REPRESENTATIVE OF WHAT HE CALLS THE SUBARU SYNDROME THE JAPANESE CAR THAT HAS BECOME THE SYMBOL FOR THE AVERAGE ISRAELI'S SUBURBAN DREAM OF A HOUSE A GARDEN AND A CAR IN THE GARAGE ISRAELIS HAVE GOTTEN USED TO THE GOOD LIFE AND NOW RABIN IS SAYING THAT ALL CITIZENS NEED TO BE ON ALERT AND FULLY MOBILIZED IT'S HARD TO REVERSE DIRECTIONS SAYS MR MELMAN IN AN ARTICLE IN THE ISRAELI DAILY YEDIOT AHARONOT NOVELIST MEIR SHALEV WROTE THAT THE CURRENT SITUATION RESULTS FROM THE GOVERNMENT'S FAILURE TO ARTICULATE ISRAELI SOCIETY'S VALUES AND FUTURE DIRECTION ESPECIALLY CONCERNING THE WEST BANK AND THE GAZA STRIP RABIN AND HIS GENERATION CAN'T EXPECT ISRAELI YOUTH TO HAVE A WILL TO FIGHT AND THE ENDURANCE AND STAMINA THAT COME FROM AN INNER BELIEF UNLESS THEY ARE SHOWN A DIRECTION AND SOMETHING TO BELIEVE IN SAID MR SHALEV 45 IN AN INTERVIEW MAYBE WHAT'S HAPPENING NOW WILL SHAKE UP SOCIETY HE SAID THE FACT IS THAT THERE ARE YOUNG PEOPLE WITH VALUES AND STAMINA AND THE WILL TO FIGHT BUT THEY'RE ARABS IT'S THE PALESTINIANS NOW WHO FEEL THEY HAVE SOMETHING WORTH FIGHTING FOR 9304080109 930408 LETTERS TO THE EDITOR ORTHODOXY DOOMED NAZIS' ATOM BOMB PLAN G PASCAL ZACHARY'S REVIEW OF HEISENBERG'S WAR THE SECRET HISTORY OF THE GERMAN BOMB LEISURE & ARTS MARCH 25 EXCITES ME AT THE PROSPECT OF READING THE BOOK HOWEVER THE ANALYSIS OF THE FAILURE OF ALBERT SPEER'S ATOMIC BOMB DEVELOPMENT PROGRAM IS SOMEWHAT AT ODDS WITH MY UNDERSTANDING ABOUT 30 YEARS AGO I HAD THE GOOD FORTUNE TO SPEAK WITH A PHYSICIST WHO WAS A MEMBER OF THE TEAM THAT ENTERED THE THIRD REICH WITH THE ALLIED ARMIES I WAS QUITE IMPRESSED WITH HIS ANALYSIS OF THE FAILURE OF THE NAZI EFFORT ONE MUST REMEMBER THAT DURING THE EARLY 1940S NO ONE WAS SURE IF AND HOW A NUCLEAR DEVICE COULD BE CONSTRUCTED THERE WERE SEVERAL COMPETING SCHOOLS OF THOUGHT BUT THERE WERE NOT ENOUGH RESOURCES TO PURSUE THEM ALL THE MANHATTAN PROJECT IS FAMOUS IT WAS A SUCCESS WHAT IS NOT WELL KNOWN IS THAT THERE WAS A SECOND EFFORT THAT WAS PURSUED EQUALLY AGGRESSIVELY WE NOW KNOW THAT THIS WAS THE WRONG APPROACH BUT IT WAS THE APPROACH SELECTED BY THE GERMAN TEAM SOLELY WHY DID THE US PROCEED WITH TWO COMPETING MODELS WHILE THE GERMANS PROCEEDED WITH ONE ALTHOUGH PART OF THE ANSWER IS IN OUR GREAT MATERIAL WEALTH WE WERE ABLE A MORE IMPORTANT ANSWER LIES IN DIFFERENCES IN EDUCATIONAL PHILOSOPHY IN THE AMERICAN SYSTEM DIFFERENCES ARE ENCOURAGED STUDENTS AND FACULTY ALIKE ARE ENCOURAGED TO QUESTION ORTHODOXY THIS MORE THAN ALLOWS COMPETING IDEAS TO BE PUT FORWARD IT ENCOURAGES THEM THE EUROPEAN SYSTEM BY CONTRAST IS MORE HIERARCHICAL THE DEPARTMENT HEAD ESPOUSES THE SCHOOL PHILOSOPHY OR STATES THE THEOREM STUDENTS AND FACULTY ARE THEN EXPECTED TO SUPPORT THIS APPROACH UNQUESTIONINGLY WERNER HEISENBERG AS HERR DOKTOR WAS NOT QUESTIONED BY HIS SUBORDINATES OR INDEED HIS PEERS SUCH SIMPLY DOES NOT OCCUR IN THIS SYSTEM THIS IS NOT TO CALL INTO QUESTION HEISENBERG'S INTELLECT FAR FROM IT HE WAS UNQUESTIONABLY BRILLIANT PERHAPS EVEN A GIANT OF THE STATURE OF BOHR EULER OR EINSTEIN HE WAS ALSO A VICTIM OF HIS TIME AND THE SYSTEM THAT NURTURED HIM 9304080108 930408 BUSINESS BRIEF DUN & BRADSTREET CORP MAJORITY INTEREST IS ACQUIRED IN CONSULTANT GARTNER GROUP DUN & BRADSTREET CORP ACQUIRED A MAJORITY INTEREST IN GARTNER GROUP INC THE STAMFORD CONN COMPUTER AND HIGHTECHNOLOGY INDUSTRIES CONSULTING COMPANY GARTNER WAS CONTROLLED BY INFORMATION PARTNERS CAPITAL FUND LP A BOSTON VENTURE CAPITAL FUND IN WHICH D&B IS A LIMITED PARTNER UNDER THE TERMS OF THE TRANSACTION D&B AND GARTNER GROUP PURCHASED GARTNER SHARES FOR 33 MILLION FROM OTHER IP LIMITED PARTNERS D&B ALSO EXERCISED A STOCK PURCHASE WARRANT IT HELD FURTHER TERMS OF THE TRANSACTION WEREN'T DISCLOSED EMPLOYEES OF GARTNER GROUP HOLD A MINORITY INTEREST IN THE COMPANY WHICH HAS OFFICES IN 20 COUNTRIES D&B SAID GARTNER GROUP WILL CONTINUE OPERATING AS AN INDEPENDENT COMPANY A D&B SPOKESMAN SAID GARTNER HAD REVENUE OF ABOUT 100 MILLION IN THE FISCAL YEAR ENDED SEPT 30 1992 D&B A BUSINESS INFORMATION AND SERVICES COMPANY HAD REVENUE OF 48 BILLION IN 1992 9304080107 930408 BUSINESS BRIEF CIBAGEIGY LTD UNIT GETS APPROVAL TO SELL 24HOUR COLD MEDICATION CIBA CONSUMER PHARMACEUTICALS A UNIT OF THE SWISS PHARMACEUTICAL GIANT CIBAGEIGY LTD SAID THE FOOD AND DRUG ADMINISTRATION GAVE IT APPROVAL TO MARKET A 24HOUR COLD MEDICATION THE OVERTHECOUNTER DRUG EFIDAC/24 BRAND COLD TABLETS WAS DEVELOPED BY ALZA CORP OF PALO ALTO CALIF ALZA WHICH IS DEVELOPING OTHER OVERTHECOUNTER COUGH AND COLD MEDICINES WITH CIBAGEIGY WILL RECEIVE ROYALTIES ON SALES OF THE DRUG BUT DECLINED TO BE SPECIFIC A CIBAGEIGY SPOKESWOMAN SAID ROYALTIES TO ALZA WOULD PROBABLY RANGE FROM 5 TO 12 OF SALES CIBA CONSUMER PHARMACEUTICALS BASED IN WOODBRIDGE NJ SAID THE DRUG IS THE FIRST 24HOUR OVERTHECOUNTER COLD MEDICATION CLEARED FOR MARKETING BY THE FDA AND WILL BE AVAILABLE NATIONWIDE BY THE FALL IT SAID THE CURRENT US MARKET FOR COLD REMEDIES IS ABOUT 2 BILLION A YEAR 9304080106 930408 BUSINESS BRIEF AMERICAN BUSINESS COMPUTERS PATENTS EXPECTED FOR WAYS OF DISPENSING SOFT DRINKS AMERICAN BUSINESS COMPUTERS CORP AKRON OHIO SAID IT EXPECTS TO RECEIVE PATENT APPROVAL ON TWO METHODS TO DISPENSE SOFT DRINKS THE COMPANY WHICH DEVELOPS AND MAKES MICROPROCESSOR DISPENSING SYSTEMS SAID IT RECEIVED NOTIFICATION FROM THE US PATENT OFFICE THAT THE PATENTS WILL BE GRANTED SOON THE FIRST OF THE PATENTS INVOLVES A METHOD OF DISPENSING A SPECIFIC AMOUNT OF ICE INTO A SOFT DRINK CUP USING SOUND AS THE MEASUREMENT DEVICE WHILE THE SECOND INVOLVES USING PLAIN SUGAR OR DRY SWEETENER AND FLAVORING AGENTS TO PRODUCE FRESH FOUNTAIN SOFT DRINKS ONSITE AMERICAN BUSINESS COMPUTERS SAID IT WOULD OFFER COMPUTERIZED EQUIPMENT TO BLEND THE INGREDIENTS TO PRODUCE FRESH FOUNTAIN SOFT DRINKS AT INDIVIDUAL STORES WHERE THEY ARE TO BE DISPENSED AND IS SEEKING A PARTNERSHIP WITH A SYRUP/JUICE MANUFACTURER OR A LARGE RETAIL OPERATION SELLING SOFT DRINKS 9304080105 930408 BUSINESS BRIEF QUEBECOR INC CANADIAN FIRM OFFERS TO BUY SHARES OF PHOTO ENGRAVERS QUEBECOR PRINTING INC SAID IT PLANS TO OFFER 3788 CANADIAN DOLLARS US3010 A SHARE OR C29 MILLION FOR ALL OF THE COMMON SHARES OUTSTANDING OF PHOTO ENGRAVERS & ELECTROTYPERS LTD SEARS CANADA INC A UNIT OF SEARS ROEBUCK & CO SAID IT HAS AGREED TO TENDER ITS 44 STAKE IN PHOTO ENGRAVERS TO QUEBECOR PRINTING'S BID FOLLOWING SUCCESSFUL COMPLETION OF THE OFFER PHOTO ENGRAVERS A REXDALE ONTARIO CATALOG PRINTER WOULD ENTER INTO A 10YEAR PRINTING CONTRACT WITH SEARS CANADA QUEBECOR PRINTING SAID QUEBECOR PRINTING THE MONTREAL COMMERCIALPRINTING UNIT OF QUEBECOR INC SAID IT INTENDS TO LAUNCH THE TAKEOVER BID EARLY NEXT MONTH SUBJECT TO DUE DILIGENCE FINDINGS THE OFFER WOULD BE CONDITIONED ON THE TENDER OF AT LEAST 90 OF PHOTO ENGRAVERS' SHARES OUTSTANDING 9304080104 930408 HEALTH REFORM SECRETS NOTE THE INFORMATION THAT YOU ARE PROVIDED IN TODAY'S BRIEFING IS CONFIDENTIAL YOU SHOULD NOT RELEASE THIS BACKGROUND INFORMATION OR DISCUSS OPTIONS WITH OTHER INDIVIDUALS PARTICULARLY THE PRESS THIS WARNING APPEARED ON A SET OF BRIEFING PAPERS ON PRESIDENT CLINTON'S HEALTHCARE PROPOSAL DELIVERED MONDAY TO THE NATION'S GOVERNORS THE PAPERS WERE PREPARED BY THE STAFF OF THE NATIONAL GOVERNORS' ASSOCIATION BASED ON DISCUSSIONS WITH THE PRESIDENT'S TASK FORCE THE GOVERNORS GATHERED IN WASHINGTON AT A CLOSEDDOOR BRIEFING TO HEAR SENIOR WHITE HOUSE AIDE IRA MAGAZINER AND OTHERS EXPLAIN THE ADMINISTRATION'S REFORM PLAN MR MAGAZINER ALSO MET APRIL 2 WITH WHAT ARE GENERALLY DESCRIBED AS CONSUMER GROUPS AND HE SPOKE THIS WEEK VIA SATELLITE HOOKUP TO HEALTH PROFESSIONALS IN CAMBRIDGE MASS AT A CONFERENCE ORGANIZED BY SEN TED KENNEDY IN THE SPIRIT OF WIDENING INFORMATION AND DISCUSSION ABOUT THE PLAN BEYOND THESE SELECT SPECIAL INTERESTS WE ARE PUBLISHING THE FOLLOWING EXCERPTS FROM THE NATIONAL GOVERNORS' ASSOCIATION'S BRIEFING PAPER THE PAPER IS DIVIDED INTO THREE POLICY STATEMENTS WHICH HAVE BEEN SENT TO EACH STATE FOR COMMENT THE FIRST IS ON HIPCS OR HEALTH INSURANCE PURCHASING COOPERATIVES IN THE PROPOSED MANAGED CARE SYSTEM EACH STATE WOULD BE REQUIRED TO SET UP ITS OWN HIPC OR INSURANCE POOL THE SECOND POLICY STATEMENT IS ON COST CONTROLS THE THIRD SECTION IS ON MEDICAID THE FEDERAL GOVERNMENT WOULD REQUIRE EACH STATE TO CREATE AT LEAST ONE HIPC BY A CERTAIN DATE IF A STATE FAILS TO DO SO THE FEDERAL GOVERNMENT COULD CONTRACT WITH AN ENTITY IN THE STATE UNTIL THE STATE ULTIMATELY CREATES THE HIPC STATES CAN CREATE ADDITIONAL HIPCS AND THEY MAY WANT TO ALLOW COMPETING HIPCS TO BE CREATED DEFINE A MINIMUM SET OF FUNCTIONS FOR THE HIPCS THE HIPCS WILL CONSOLIDATE PURCHASING POWER IN THE HEALTH CARE MARKET THE HIPCS WILL ENROLL MEMBERS NEGOTIATE CONTRACTS WITH ACCOUNTABLE HEALTH PLANS AHPS MONITOR CONTRACTS AND RESOLVE CONSUMER COMPLAINTS THE HIPCS WILL COLLECT OUTCOME COSTS AND CONSUMER SATISFACTION INFORMATION ON AHPS AND MAKE IT AVAILABLE TO EMPLOYERS AND CONSUMERS IF THERE IS AN EMPLOYER MANDATE THE FEDERAL GOVERNMENT WOULD REQUIRE THAT ALL SMALL BUSINESSES EG UP TO 100 EMPLOYEES AND THE SELFEMPLOYED ENROLL IN THE HIPCS REQUIRE THAT ALL STATE GOVERNMENT EMPLOYEES ENROLL IN THE HIPCS REQUIRE STATES TO HAVE A FIDUCIARY RESPONSIBLITY TO EMPLOYERS AND ENROLLEES WHO PARTICIPATE THROUGH HIPCS OR IN OTHER WAYS DEFINE INSURANCE GUIDELINES FOR RISK ADJUSTMENT AND UNDERWRITING USED BY THE HIPC IT WOULD BE UP TO EACH STATE TO DETERMINE WHETHER THE HIPC WOULD BE A QUASIGOVERNMENT AGENCY AN ENTITY OF STATE GOVERNMENT OR PRIVATE HOW MANY HIPCS WOULD BE CREATED IN EACH STATE AND THE GEOGRAPHICAL JURISDICTION OF EACH THE STATE ALSO MAY ALLOW FOR PRIVATE HIPCS THE FEDERAL LEGISLATION SHOULD ALLOW FOR MULTISTATE COMPACTS FOR HIPCS IN AREAS THAT CROSS STATE BORDERS WHICH ADDITIONAL POPULATIONS SHOULD BE REQUIRED TO ENROLL IN A HIPC FOR EXAMPLE IT WOULD BE UP TO A STATE TO REQUIRE OR ALLOW THE FOLLOWING GROUPS TO JOIN VOLUNTARILY A MEDIUMSIZED FIRMS EG 100500 EMPLOYEES B LARGE EMPLOYERS ABOVE 500 C MEDICAID ACUTE CARE RECIPIENTS OR A NEW PROGRAM FOR LOWINCOME INDIVIDUALS D LOCAL GOVERNMENT EMPLOYERS AND E MEDICARE RECIPIENTS WHICH INCENTIVES MANDATES AND REGULATIONS WOULD BE REQUIRED TO ASSURE COVERAGE AND COST CONTAINMENT PARTICULARLY IN INNER CITY AND RURAL AREAS HOW ACCOUNTABLE HEALTH PLANS WOULD BE CERTIFIED AS MEETING THE FEDERAL GUIDELINES REGARDING BENEFIT PACKAGES AND OTHER STANDARDS THE NUMBER AND TYPE OF ACCOUNTABLE HEALTH PLANS TO BE OFFERED THE EXTENT OF HEALTH PLANNING RESPONSIBILITIES TO BE VESTED IN HIPCS CURRENTLY STATE GOVERNMENTS HAVE A MAJOR REGULATORY AND ADMINISTRATIVE ROLE IN HEALTH CARE IN THEIR RESPECTIVE STATES MANY OF THESE FUNCTIONS WILL CONTINUE AFTER HEALTH CARE REFORM IS ENACTED HOWEVER THERE ALSO WILL BE A NUMBER OF ADDITIONAL GOVERNMENTAL FUNCTIONS THAT WILL BE NECESSARY TO SUCCESSFULLY IMPLEMENT HEALTH CARE REFORM DETERMINING WHICH GENERAL GOVERNANCE RESPONSIBILITIES SHOULD BE IN THE HIPC AND WHICH SHOULD BE IN OTHER STATE GOVERNMENT AGENCIES SHOULD BE LEFT TO STATES MANAGED COMPETITION OFFERS AN OPPORTUNITY TO CONTROL HEALTH CARE COSTS EFFECTIVELY AND WITHOUT MICROMANAGEMENT OF THE HEALTH CARE DELIVERY SYSTEM WE HEARTILY ENDORSE MOVEMENT TOWARD INTEGRATING DELIVERY SYSTEMS CAPITATED REIMBURSEMENT ARRANGEMENTS AND GREATER COSTCONSCIOUSNESS ON THE PART OF HEALTH CARE PURCHASERS THE NATIONAL GOVERNORS' ASSOCIATION HAS NO POLICY ON SHORT RUN PRICE CONTROLS HOWEVER THE FOLLOWING POINTS ARE IMPORTANT TO STATES STATES DO NOT WANT TO BE ACCOUNTABLE FOR INTERIM COST CONTAINMENT IT WOULD BE TOO LARGE A BURDEN FOR STATES WHILE THEY ARE SIMULTANEOUSLY BUILDING CAPACITY FOR MANAGED COMPETITION THIS SHOULD BE AN ISSUE BETWEEN THE FEDERAL GOVERNMENT AND PROVIDERS THERE SHOULD HOWEVER BE A STATE OPTOUT FOR THOSE STATES THAT WANT TO IMPLEMENT AN ALTERNATE APPROACH AS LONG AS THEY MEET THE GENERAL GOALS OF THE NATIONAL COST CONTROL STRATEGY EVEN WITH A SHORTRUN CONTROL STRATEGY THAT IS IMPLEMENTED NATIONALLY STATES SHOULD HAVE THE OPTION OF REQUESTING THAT CONTROLS BE REMOVED EARLY PROVIDED THAT THEY MEET SOME OBJECTIVE CRITERIA FOR EXAMPLE A STATE COULD REQUEST THAT NATIONAL PRICE CONTROLS COME OFF ONCE A COOPERATIVE IS FULLY OPERATIONAL AND A GIVEN PERCENTAGE OF THE POPULATION IS ENROLLED IN ACCOUNTABLE HEALTH PLANS AND/OR A GLOBAL BUDGET IS OPERATIONAL SUCH AN APPROACH MAY PROVIDE AN INCENTIVE TO ACCELERATE THE FORMATION OF ACCOUNTABLE HEALTH PLANS COST CONTROL MEASURES SHOULD BE IMPLEMENTED IN A MANNER THAT RESULTS IN SYSTEMWIDE CONTROL AND NOT IN SHIFTING OF COSTS FROM ONE PAYER TO ANOTHER THERE IS CONSIDERABLE RISK THAT SUCH CONTROLS WILL SHIFT COST TO MEDICAID DURING THIS TIME PERIOD STATES ALSO MUST BE ABLE TO MORE EASILY IMPLEMENT MANAGED CARE SYSTEMS FOR MEDICAID BENEFICIARIES THE CURRENT MEDICAID PROGRAM SHOULD BE DIVIDED INTO THREE SEPARATE PROGRAMS 1 INSTITUTIONAL LONGTERM CARE 2 HOME AND COMMUNITYBASED LONGTERM CARE AND 3 ACUTE CARE THE FIRST TWO SHOULD BE MAINTAINED AS TWO SEPARATE PROGRAMS WHILE THE ACUTE CARE COMPONENT SHOULD BE FOLDED INTO THE NEW LOWINCOME PROGRAM AS QUICKLY AS POSSIBLE DESPITE SIGNIFICANT CHANGES IN HEALTH CARE DELIVERY AND FINANCING A PERIOD WILL REMAIN WHEN STATES MUST CONTINUE TO ADMINISTER THEIR MEDICAID PROGRAMS UNDER CURRENT STATUTES AND REGULATIONS FOR THIS PERIOD THE GOVERNORS WILL CONTINUE TO PURSUE AS MUCH FLEXIBILITY IN THE PROGRAM AS POSSIBLE INCLUDING BUT NOT LIMITED TO WAIVER SIMPLIFICATION ALLOWING MANAGED CARE TO BE A PART OF THE REGULAR PROGRAM RATHER THAN A WAIVER MORE FLEXIBILITY IN ESTABLISHING REIMBURSEMENT RATES AND ROLLBACK OF SOME OF THE ONEROUS MANDATES IMPOSED ON STATES OVER THE LAST DECADE 9304080103 930408 TECHNOLOGY & HEALTH US SURGICAL 2NDPERIOD NET TO FALL SHARPLY BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL US SURGICAL CORP SAID SECONDQUARTER EARNINGS WILL BE SHARPLY DOWN FROM YEAREARLIER PROFIT REFLECTING A MAJOR CHANGE IN THE DISTRIBUTION OF ITS SURGICAL SUPPLY PRODUCTS THE NORWALK CONN COMPANY WHOSE SHARES HAVE PLUMMETED MORE THAN 35 IN THE PAST TWO MONTHS SAID FULLYEAR RESULTS WOULD ALSO BE LOWER THOUGH SOLIDLY PROFITABLE THE ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK EXCHANGE WHERE SURGICAL'S SHARES CLOSED DOWN 2 AT 46625 DURING THE SESSION THEY TRADED FOR AS LITTLE AS 43375 A NEW 52WEEK LOW WE'RE LOOKING FOR A VERY POOR SECOND QUARTER AND THEN STEADY IMPROVEMENT SAID LEON C HIRSCH SURGICAL'S CHAIRMAN SEVERAL ANALYSTS HAD LOWERED 1993 AND 1994 EARNINGS ESTIMATES FOR THE COMPANY EARLY IN THE DAY AND DEAN WITTER ANALYST BOB GOLDMAN ISSUED A SELL RECOMMENDATION ON THE STOCK FOR THE YEARAGO SECOND QUARTER SURGICAL REPORTED EARNINGS OF 348 MILLION OR 58 CENTS A SHARE ON SALES OF 3048 MILLION FOR THE YEAR THE COMPANY POSTED PROFIT OF 1389 MILLION OR 232 A SHARE ON 12 BILLION OF REVENUE THE COMPANY TOLD DOW JONES NEWS SERVICE THAT IT IS COMFORTABLE WITH ANALYSTS' FIRSTQUARTER ESTIMATES OF 61 CENTS TO 64 CENTS A SHARE FIRSTQUARTER RESULTS WILL BE RELEASED ON APRIL 15 THE COMPANY SAID IN LAST YEAR'S FIRST PERIOD THE COMPANY EARNED 297 MILLION OR 49 CENTS A SHARE ON SALES OF 2771 MILLION CONCERNS ABOUT PRESIDENT CLINTON'S PROPOSALS FOR REVAMPING THE US HEALTHCARE SYSTEM EVIDENCE THAT DOCTORS AND HOSPITALS ARE MAKING EFFORTS TO CUT COSTS AS WELL AS CONCERN OVER THE DISTRIBUTION PROGRAM ARE AMONG REASONS FOR THE RECENT SWOON IN THE STOCK WHICH TRADED AS HIGH AS 118 A YEAR AGO THE DISTRIBUTION PROGRAM INVOLVES A SWITCH TO SOCALLED JUSTINTIME INVENTORY MANAGEMENT IN WHICH HOSPITALS TAKE SUPPLIES AS NEEDED INSTEAD OF IN 30DAY OR 60DAY ORDERS THE SALES AND PROFIT FALL WILL RESULT AS HOSPITALS USE UP EXISTING INVENTORIES BEFORE THEY BEGIN BUYING FROM DISTRIBUTORS UNDER THE JUSTINTIME ARRANGEMENTS THIS WASN'T OUR IDEA MR HIRSCH SAID IN AN INTERVIEW FOR THE LAST YEAR HOSPITALS HAVE BEEN EXAMINING EVERY METHOD THEY CAN TO REDUCE COSTS INCLUDING THE HANDLING COSTS OF INVENTORY HOSPITALS INVOLVED IN A TEST OF THE NEW APPROACH REACTED FAVORABLY PROMPTING THE COMPANY TO BROADEN THE PROGRAM SIGNIFICANTLY IN THE PAST FEW WEEKS USE OF DISTRIBUTORS REPRESENTS A DEPARTURE FOR SURGICAL WHICH HAS TURNED IN IMPRESSIVE RESULTS IN RECENT YEARS WITH A SALES FORCE THAT IS BOTH ADMIRED AND LOATHED FOR ITS AGGRESSIVE DIRECT MARKETING TO DOCTORS THE PRACTICE HAS ANNOYED SOME HOSPITALS WHICH PAY THE BILLS FOR SUPPLIES DOCTORS ORDER BUT SURGICAL HAS REWARDED THOSE THAT BUY IN LARGE QUANTITIES WITH VOLUME DISCOUNTS THE SALES FORCE WILL CONTINUE ITS EFFORTS BUT RATHER THAN ORDER DIRECTLY FROM THE COMPANY MANY HOSPITALS WILL GET THEIR SUPPLIES FROM A DISTRIBUTOR OFTEN ON A DAILY BASIS THE TRANSITION TO THE NEW PROGRAM IS EXPECTED TO RESULT IN A FLAT OR SLIGHTLY LOWER THIRD QUARTER COMPARED WITH YEAREARLIER PROFIT OF 365 MILLION OR 61 CENTS A SHARE BUT A STRONG FOURTH PERIOD MR HIRSCH SAID THE KEY THING WE DON'T KNOW WHICH COULD SKEWER THIS QUARTER ONE WAY OR THE OTHER IS HOW MUCH INVENTORY HOSPITALS CURRENTLY HAVE ON THEIR SHELVES HE ADDED IN THE PREVIOUS FOURTH PERIOD PROFIT WAS 379 MILLION OR 64 CENTS A SHARE SALES IN THE PREVIOUS THIRD AND FOURTH PERIODS WERE 2933 MILLION AND 322 MILLION RESPECTIVELY APART FROM THE NEW DISTRIBUTION PROGRAM MR HIRSCH SAID BUSINESS HAS BEEN AFFECTED IN RECENT WEEKS BY A TREMENDOUS CHANGE IN ATTITUDE AMONG SURGEONS AND HOSPITAL ADMINISTRATORS AS THE NATION AWAITS SPECIFIC HEALTH REFORM PROPOSALS FROM THE CLINTON ADMINISTRATION NOBODY KNOWS WHAT THE PACKAGE IS GOING TO CONTAIN MR HIRSCH SAYS WHEN PEOPLE ARE UNCERTAIN THEY BECOME SCARED HE MAINTAINED THAT WHATEVER MR CLINTON COMES UP WITH IT WILL ULTIMATELY BENEFIT SURGICAL WHOSE PRODUCTS ARE USED IN SOCALLED MINIMALLY INVASIVE PROCEDURES FOR GALLBLADDER HERNIA AND OTHER SURGERIES THAT GENERALLY RESULT IN MUCH SHORTER HOSPITAL STAYS THAN CONVENTIONAL SURGERY 9304080102 930408 WESTINGHOUSE SAYS DOE PLANS LAYOFFS AT PLANT PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID THE DEPARTMENT OF ENERGY'S SAVANNAH RIVER PLANT WHICH IT OPERATES WILL LAY OFF ABOUT 2500 WORKERS MOST OF THEM WESTINGHOUSE EMPLOYEES BECAUSE OF DOE BUDGET CUTS A WESTINGHOUSE SPOKESMAN SAID THE LAYOFFS RESULT FROM 210 MILLION IN CUTS TO THE BUDGET OF THE FACILITY WHICH WAS ONCE USED TO MAKE PLUTONIUM AND TRITIUM FOR NUCLEAR WEAPONS THE CUTS LARGELY RESULT FROM MOTHBALLING THE PLANT'S LAST OPERATING REACTOR THE COMPANY'S WESTINGHOUSE SAVANNAH RIVER CO UNIT OPERATES THE PLANT AND IS MANAGING AN EXTENSIVE ENVIRONMENTAL CLEANUP THERE THE SPOKESMAN SAID 15000 OF THE 24500 WORKERS AT THE PLANT WHICH IS NEAR AIKEN SC ARE WESTINGHOUSE EMPLOYEES ABOUT 400 OF THE LAYOFFS CAN BE MADE THROUGH ATTRITION HE SAID AND AN UNDETERMINED NUMBER OF EMPLOYEES MAY BE PLACED IN JOBS IN THE CLEANUP EFFORT 9304080101 930408 BUSINESS BRIEF BEAR STEARNS COS FISCAL THIRDQUARTER PROFIT ROSE NEARLY 21 TO A RECORD EXCEEDING EXPECTATIONS BEAR STEARNS COS SAID NET INCOME IN ITS FISCAL THIRD QUARTER ROSE NEARLY 21 TO A RECORD LEVEL BOOSTED BY A 32 RISE IN INVESTMENT BANKING REVENUE THE NEW YORK SECURITIES BROKERAGE AND INVESTMENT BANKING FIRM SAID NET INCOME FOR THE QUARTER ENDED MARCH 26 ROSE TO 1104 MILLION OR 97 CENTS A SHARE FROM 913 MILLION OR 80 CENTS A SHARE A YEAR EARLIER WHEN THE PREVIOUS RECORD WAS SET REVENUE NET OF INTEREST EXPENSE CLIMBED TO 5706 MILLION FROM 5322 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BEAR STEARNS ROSE 1125 TO 19 BEAR STEARNS ALSO ATTRIBUTED ITS RESULTS TO A 36 CLIMB IN REVENUE FROM PRINCIPAL TRANSACTIONS TO 3203 MILLION AIDED BY INCREASED ACTIVITY IN THE FIXED INCOME AND OVERTHECOUNTER STOCK MARKETS AND A 78 RISE IN COMMISSION REVENUE TO 1128 MILLION INVESTMENT BANKING REVENUE ROSE TO 879 MILLION FROM 666 MILLION FOR THE NINE MONTHS NET ROSE TO 2377 MILLION OR 209 A SHARE FROM 2158 MILLION OR 187 A SHARE A YEAR EARLIER REVENUE NET OF INTEREST EXPENSE CLIMBED TO 15 BILLION FROM 14 BILLION 9304080100 930408 MARKETSCAN PUSHING CHOCOLATE CHICKS AND BUNNIES BIG CANDY FIRMS SEE EASTER SALES PARADE BY KATHLEEN DEVENY THE NATION'S MOST POWERFUL CANDY MARKETERS ARE COMPETING ON NEW TURF THE GREEN PLASTIC GRASS THAT LINES KIDS' EASTER BASKETS UNTIL A FEW YEARS AGO HERSHEY FOODS CORP MARS INC AND NESTLE SA WERE LARGELY CONTENT TO LEAVE THE BUSINESS OF CHOCOLATE BUNNIES CREAM EGGS AND MARSHMALLOW CHICKS TO SPECIALTY MANUFACTURERS BUT WITH US CHOCOLATE CONSUMPTION GROWING SLOWLY AND NO PRICE INCREASES FOR CANDY BARS ON THE HORIZON THE 147 BILLION MARKET FOR EASTER AND OTHER HOLIDAY CANDIES IS LOOKING SWEETER THAN EVER THE KINGS OF CANDYLAND ARE WHIPPING UP NEW HOLIDAY TREATS AND REPACKAGING THEIR REGULAR BRANDS IN PASTEL HUES FOR EASTER NEW PRODUCTS VYING FOR A SPOT IN BASKETS THIS YEAR INCLUDE HERSHEY'S CHOCOLATECOVERED MARSHMALLOW EGGS AND PASTELWRAPPED MOUNDS ALMOND JOY AND KIT KAT MINIATURE CANDY BARS ARCHRIVAL MARS MEANWHILE IS OFFERING DOVEBRAND CHOCOLATE BUNNIES AND EGGS THIS YEAR MARKS NESTLE'S BIGGEST PUSH INTO EASTER SWEETS WITH PASTEL VERSIONS OF ITS CRUNCH BABY RUTH AND BUTTERFINGER BARS AND SUCH NOVELTY PRODUCTS AS EGG BELLIES A PLASTIC SHELL LOADED WITH CRUNCH EGGS AND A FINGER PUPPET WHY NOW THE QUESTION SHOULD BE WHY NOT EARLIER' SAYS LISA GAUDIO MARKETING MANAGER FOR SEASONAL PRODUCTS AT NESTLE WE ARE VERY COMMITTED TO THIS MARKET NO WONDER LAST YEAR RETAIL SALES OF SEASONAL CANDY IN SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS GREW NEARLY 20 COMPARED WITH 1991 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THAT IS MORE THAN TWICE THE GROWTH RATE FOR REGULAR CANDY BARS SALES OF EASTER CANDY THE LARGEST OF THE HOLIDAY CANDY CATEGORIES WITH SALES LAST YEAR OF 4889 MILLION INCREASED MORE THAN 30 SALES OF VALENTINE'S DAY CANDY ROSE 18 WHILE SALES OF HALLOWEEN AND CHRISTMAS CANDY JUMPED 14 AND 12 RESPECTIVELY WHAT'S MORE MARKETERS SAY SALES OF HOLIDAY CANDIES GREW EVEN DURING THE PROLONGED ECONOMIC SLUMP SHOPPERS WHO HAVE PROVED WILLING TO STOP BUYING MANY GROCERY ITEMS THEY DEEM TOO EXPENSIVE DON'T HAVE THE HEART TO SCRIMP ON GOODIES FOR JUNIOR'S EASTER BASKET OR VALENTINE CHOCOLATES AND UNLIKE THE MARKET FOR REGULAR CANDY BARS WHICH AVERAGE ABOUT 45 CENTS EACH THERE IS LITTLE PRICE COMPETITION AMONG SEASONAL PRODUCTS SHOPPERS ARE MOTIVATED MORE BY THE TASTE OF THE PRODUCT AND THE COLOR OF ITS PACKAGING THAN BY PRICE MAJOR MANUFACTURERS BEGAN THEIR PUSH INTO SEASONAL GOODIES ABOUT FIVE YEARS AGO SINCE THEN THEY HAVE ADDED PRODUCTS AGGRESSIVELY GRABBING NEARLY 40 OF EASTER CANDY SALES LAST YEAR HERSHEY HOPPED AHEAD OF THE OTHER BIG BRANDS IN SALES OF EASTER CANDIES RINGING UP 1246 MILLION ACCORDING TO INFORMATION RESOURCES MARS LAGGED BEHIND WITH SALES OF 57 MILLION DURING THE SAME PERIOD UP 26 FROM THE PREVIOUS EASTER SEASON THE EASTER COMPETITION IS MERELY THE LATEST ROUND IN A BITTER DECADESLONG BATTLE BETWEEN HERSHEY AND MARS FOR THE NO 1 TITLE IN THE 16 BILLION US CONFECTIONARY MARKET MARS SURPASSED HERSHEY BACK IN THE EARLY 1970S BUT HERSHEY PULLED AHEAD WITH ITS 1988 ACQUISITION OF CADBURY SCHWEPPES FOODS MAKER OF SUCH BRANDS AS MOUNDS AND ALMOND JOY MORE RECENTLY MARS MADE SOME GAINS WITH AN UNPRECEDENTED NEW PRODUCT PUSH INCLUDING NEW VARIETIES OF M&M'S AND THE LOWCALORIE MILKY WAY II BAR NEVERTHELESS HERSHEY APPEARS TO BE OUTPACING ITS RIVAL SALES OF ITS REGULARSIZE CANDY BARS JUMPED 187 DURING THE 52 WEEKS ENDED FEB 21 WHILE SALES OF MARS'S CANDY BARS GREW ONLY ABOUT 14 ANALYSTS SAY MARS'S LACKLUSTER PERFORMANCE CAME AT A TIME OF MANAGEMENT TURMOIL AT THE CLOSELY HELD COMPANY LAST YEAR TWO TOP MARKETING EXECUTIVES LEFT MARS TO JOIN NABISCO FOOD GROUP'S LIFESAVERS DIVISION A MARS SPOKESWOMAN'S ONLY COMMENT IS THAT SEASONAL MARKET SHARES TEND TO FLUCTUATE HERSHEY HAS SHARPLY INCREASED ITS ADVERTISING SPENDING WHICH WAS UP 176 LAST YEAR COMPARED WITH 1991 THE BULK OF THAT INCREASE HAS BEEN LAVISHED ON THE COMPANY'S US CANDY UNIT WHICH THE COMPANY MAINTAINS HAS HELPED BUOY ITS ESTABLISHED BRANDS BUT ANALYSTS SAYS HERSHEY'S MORE AGGRESSIVE PUSH INTO SEASONAL CANDIES HAS ALSO HELPED WIDEN ITS LEAD OVER MARS THEIR STRENGTH IN MARKETING PRODUCTS WITH A SEASONAL MOTIF IS ONE OF THE REASONS THAT THEY'VE DONE SO WELL SAYS LEONARD TEITELBAUM AN ANALYST WITH MERRILL LYNCH & CO AT THE SAME TIME NESTLE IS MAKING ITS MOST AGGRESSIVE PUSH EVER INTO THE US SEASONALCANDY BUSINESS THE COMPANY BEGAN EYEING THE MARKET FOR HOLIDAY TREATS THREE YEARS AGO AFTER NOTICING ITS MARKET SHARE USUALLY DOUBLED DURING THE HALLOWEEN SEASON AFTER DABBLING IN CHRISTMAS CANDY NESTLE IS MOVING AGGRESSIVELY DOWN THE BUNNY TRAIL IT HAS REVIVED FARFEL THE ANIMATED DOG THAT ONCE PITCHED THE COMPANY'S QUIK PRODUCTS IN ADDITION TO DRESSING UP ITS REGULAR PRODUCTS THE COMPANY HAS ALSO WHIPPED UP NEW NOVELTY ITEMS FOR EASTER COMPLETE WITH TOYS THAT KIDS CAN PLAY WITH AFTER THE CANDY HAS BEEN DEVOURED NEW ON RETAILERS' SHELVES THIS EASTER THE FARFEL DOG HOUSE A CARDBOARD HUT FILLED WITH TINY CRUNCH EGGS AND A BENDABLE TOY LIKENESS OF FARFEL WE TRIED TO OFFER SOMETHING WITH A LASTING VALUE SAYS NESTLE'S MS GAUDIO SHE ENVISIONS FUTURE HOLIDAY TREATS PAIRING EDUCATIONAL GAMES WITH NESTLE CHOCOLATE THE TRICK IN THE FUTURE WILL BE TO COME UP WITH ITEMS THAT ARE UNIQUE TO NESTLE THE AGGRESSIVE NEWCOMERS HAVE SOME MAKERS OF TRADITIONAL SEASONAL CANDIES HOPPING MAD THE COMPETITION HAS GOTTEN BRUTAL SAYS STU SELARNICK VICE PRESIDENT OF SALES AND MARKETING FOR FRANKFORD CANDY & CHOCOLATE CO A PHILADELPHIA COMPANY THAT HAS BEEN MOLDING CHOCOLATE BUNNIES AND OTHER HOLIDAY TREATS SINCE 1947 THEY'RE GOING AFTER AS MUCH SHELF SPACE AS THEY CAN TO FIGHT BACK AGAINST ITS FORMIDABLE NEW ADVERSARIES FRANKFORD HAS WHIPPED UP PRODUCTS IT HOPES KIDS WILL FIND HIPPER THAN TRADITIONAL CHOCOLATE BUNNIES THE COMPANY IS COUNTING ON NEW VERSIONS OF ITS LINE OF EGGHEADS WHICH ARE SMALL CHOCOLATE EGGS WITH SUCH FILLINGS AS PEANUT BUTTER AND COCONUT CREAM NEW OFFERINGS INCLUDE MR EGGHEAD'S PLAYHOUSE FEATURING A LARGER HOLLOW CHOCOLATE EGG WITH A PLASTIC TOY AS WELL AS PACKS THAT COMBINE CANDY WITH CRAYONS COLORING BOARDS AND STICKERS FRANKFORD IS EVEN CONSIDERING LAUNCHING NOVELTY CHOCOLATES FOR YEARROUND CONSUMPTION WHILE BEING CAREFUL NOT TO CHALLENGE HERSHEY OR MARS DIRECTLY WE'RE GOING TO DO SOMETHING COMPLETELY DIFFERENT VOWS MR SELARNICK BUT WE'RE STAYING AWAY FROM CANDY BARS 9304080098 930408 CREDIT MARKETS MANY TREASURY PRICES RISE ON MORE SPECULATION ABOUT POSSIBLE CHANGES IN US BORROWING MIX BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SPECULATION ABOUT POSSIBLE CHANGES IN THE WAY THE GOVERNMENT MANAGES ITS DEBT DOMINATED AN OTHERWISE QUIET TRADING SESSION AS MANY TREASURYS ENDED SLIGHTLY HIGHER THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1/4 POINT OR NEARLY 250 FOR A BOND WITH A 1000 FACE VALUE TO 102 5/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE DROPPED TO 695 FROM 696 ON TUESDAY THE 10YEAR NOTE ROSE NEARLY 1/8 POINT TO 101 11/32 TO YIELD 606 DOWN FROM 607 BUT MOST TREASURYS MATURING IN FIVE YEARS OR LESS ENDED UNCHANGED ON THE DAY MEANWHILE ABOUT 20 BILLION OF SOCALLED BRADY BONDS FROM ARGENTINA WERE OFFICIALLY FREED TO TRADE IN THE CASH MARKET THESE DOLLARDENOMINATED BONDS WHICH WERE CREATED OUT OF ARGENTINA'S COMMERCIAL BANK DEBT AND PASTDUE INTEREST AS PART OF ITS BRADY PLAN RESTRUCTURING INCREASED THE SIZE OF THE BRADY BOND MARKET BY ABOUT A THIRD TO ABOUT 76 BILLION ACCORDING TO SALOMON BROTHERS INC MEANWHILE TRADING VOLUME IN THE US TREASURY MARKET WAS ON THE LIGHT SIDE THROUGHOUT THE SESSION WITH MANY IN THE MARKET SIDELINED AHEAD OF KEY INFLATION DATA TO BE RELEASED TODAY THIS WAS THE TYPE OF SESSION YOU WOULD PROBABLY HAVE TO EXPECT IN THE MIDST OF A HOLIDAYSHORTENED WEEK AND WITHOUT ANY REAL ECONOMIC DATA RELEASES TO CONTEND WITH SAID WILLIAM V SULLIVAN JR A SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC IT WAS A FEATURELESS SESSION FOR THE SECOND CONSECUTIVE DAY WHAT LITTLE ACTIVITY THERE WAS CENTERED AROUND TALK OF A REDUCTION IN THE AMOUNT OF 30YEAR BONDS THAT ARE ISSUED AS PART OF A CHANGE IN THE WAY THE TREASURY MANAGES THE FEDERAL DEBT SPARKING THE LATEST ROUND OF DISCUSSION ABOUT POTENTIAL CHANGES IN THE BORROWING MIX WAS A REPORT PRODUCED BY THE GOLDMAN SACHS & CO ECONOMICS GROUP GOLDMAN ANALYSTS ARGUED THAT AS PART OF LIKELY CHANGES IN DEBT MANAGEMENT THE GOVERNMENT WILL MOVE TO SEMIANNUAL 30YEAR BOND AUCTIONS FROM THE CURRENT QUARTERLY STRUCTURE ACCORDING TO THE REPORT THAT WOULD MEAN NO 30YEAR BOND AUCTION AT THE MAY REFUNDING THE GOLDMAN ANALYSIS SAID THE TREASURY'S FINAL PLAN FOR CHANGES IN THE BORROWING MIX WILL PROBABLY CLOSELY RESEMBLE THOSE SUGGESTED SEVERAL WEEKS AGO BY THE SENATE BUDGET COMMITTEE THE COMMITTEE RECOMMENDED A 50 CUT IN THE AMOUNT OF LONG BONDS ISSUED AN ELIMINATION OF THE SEVENYEAR NOTE AND A 20 CUT IN THE AMOUNT OF FIVEYEAR NOTES THAT ARE AUCTIONED AT THE SAME TIME THE TREASURY WILL MOVE TO INCREASE BILL AUCTION SIZES LATER THIS QUARTER TO COMPENSATE FOR THE REDUCTIONS IN THE OTHER OFFERINGS ACCORDING TO THE GOLDMAN REPORT A GOLDMAN SACHS ECONOMIST WHO PRODUCED THE REPORT STRESSED IT WAS SOLELY THEIR GROUP'S OWN ANALYSIS A SIMILAR REPORT THAT AFFECTED THE MARKET TUESDAY BY STONE & MCCARTHY RESEARCH ASSOCIATES WAS BASED ON INFORMATION FROM AN UNNAMED SOURCE IN WASHINGTON A SPOKESMAN FOR THE TREASURY DEPARTMENT SAID AN INTERNAL GROUP STUDYING THE QUESTION OF CHANGING THE BORROWING MIX HASN'T YET MADE ANY DECISIONS THE FINDINGS OF THE STUDY GROUP ARE DUE TO BE MADE PUBLIC BEFORE THE NEXT QUARTERLY REFUNDING AUCTIONS ARE ANNOUNCED ON MAY 5 TREASURY SECRETARY LLOYD BENSTEN HAS REPEATEDLY SAID HE DIDN'T ANTICIPATE ANY RADICAL CHANGES IN THE BORROWING MIX IN RESPONSE TO THE GOLDMAN REPORT TRADERS PUSHED THE PRICE OF THE LONG BOND HIGHER CREATING WHAT IS KNOWN AS A FLATTER YIELD CURVE AS THE INTEREST RATE GAP BETWEEN SHORTTERM AND LONGTERM TREASURYS NARROWS DURING THE EARLY PART OF THE SESSION THE GAP BETWEEN THE YIELD ON THE TWOYEAR NOTE AND 30YEAR BOND FELL TO 300 PERCENTAGE POINTS FROM 305 PERCENTAGE POINTS LATE TUESDAY THE GOLDMAN SACHS REPORT FLATTENED THE CURVE FROM THE VERY START OF THE MORNING SAID ANDREW BRENNER A GOVERNMENT SECURITIES TRADING MANAGER AT NOMURA SECURITIES INTERNATIONAL INC ALSO HELPING LONGTERM ISSUES WAS ANOTHER DECLINE IN COMMODITIES PRICES WHICH HELPED TO EASE SOME OF THE INFLATION CONCERNS THAT HAVE BEEN PLAGUING THE MARKET THE COMMODITY RESEARCH BUREAU INDEX CLOSED DOWN 122 POINTS AT 21025 INFLATION IS STILL A PROBLEM FOR THE MARKET BUT THE CRB DECLINED AND THAT ALLEVIATED THINGS A LITTLE BIT MR BRENNER SAID BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN MEANWHILE THE TREASURY SOLD 2253 BILLION OF THREEMONTH AND SIXMONTH BILLS THE WEEKLY BILL AUCTION HAD BEEN POSTPONED FROM MONDAY WHILE THE TREASURY WAITED FOR THE SENATE TO PASS AN INCREASE IN THE AMOUNT OF DEBT THAT THE GOVERNMENT IS ALLOWED TO HAVE OUTSTANDING THE SENATE VOTED TO INCREASE THE DEBT LIMIT LATE MONDAY EVENING AMONG THE DATA SLATED TO BE RELEASED TODAY THE MARCH PRODUCER PRICE INDEX REPORT WILL BE OF PARTICULAR INTEREST AGAINST A BACKDROP OF HEIGHTENED CONCERNS ABOUT INFLATION THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT CALLS FOR A MODERATE INCREASE OF 03 BOTH WITH AND WITHOUT THE VOLATILE FOOD AND ENERGY CATEGORY FACTORED IN ALSO DUE OUT TODAY WILL BE INITIAL UNEMPLOYMENT CLAIMS FOR THE WEEK ENDED APRIL 3 MOST ECONOMISTS ARE LOOKING FOR A PARTIAL REVERSAL OF THE STEEP 33000 RISE REPORTED LAST WEEK WHATEVER RESPONSE THERE IS TO THE ECONOMIC DATA WILL BE SHORTLIVED AS THE GOVERNMENT SECURITIES MARKETS ARE SLATED TO CLOSE AT 2 PM EDT AHEAD OF THE GOOD FRIDAY HOLIDAY US BOND MARKETS WILL BE CLOSED TOMORROW HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED APRIL 8 THE 13WEEK BILLS MATURE JULY 8 1993 AND THE 26WEEK BILLS MATURE OCT 7 1993 YESTERDAY'S ISSUANCE OF AN ESTIMATED 20 BILLION IN ARGENTINIAN BRADY BONDS WAS THE LARGEST SUCH ISSUANCE SINCE JANUARY 1991 WHEN VENEZUELA ISSUED MORE THAN 16 BILLION OF BRADY BONDS AS MONEY MANAGERS IN THE US LOOK FOR HIGHERYIELDING INVESTMENTS ABROAD BRADY BONDS HAVE BECOME AN INCREASINGLY ATTRACTIVE ALTERNATIVE BECAUSE MANY OF THEM HAVE THEIR PRINCIPALS COLLATERALIZED BY ZEROCOUPON US TREASURYS AS WITH OTHER BRADY BONDS ARGENTINA'S BRADY BONDS WERE CREATED FROM COMMERCIAL BANK LOANS AND PASTDUE INTEREST AS PART OF AN EXTENSIVE RESTRUCTURING OF THAT NATION'S ECONOMY FOR THE MOMENT LESS THAN 20 OF THESE ARGENTINIAN DOLLARDENOMINATED BONDS CAN BE PURCHASED IN THE US AND THOSE MAY ONLY BE PURCHASED BY SOCALLED QUALIFIED INSTITUTIONAL BUYERS POSSESSING AT LEAST 100 MILLION IN ASSETS BUT AFTER A 40DAY SEASONING PERIOD IN THE EUROBOND MARKET THE REMAINING ARGENTINA BRADY BONDS CAN BE PURCHASED BY ANY AMERICAN INVESTOR THE ARGENTINA BRADY BONDS COME IN THREE VERSIONS PAR DISCOUNT AND PASTDUE INTEREST BONDS THE PAR BONDS WERE EXCHANGED FOR AN EQUAL FACE AMOUNT OF LOANS AND MATURE IN 30 YEARS THEY PAY A FIXED RATE WITH A STEPUP COUPON THIS MEANS THAT THE FIRST COUPON PAYMENT IS 4 AND INCREASES EACH YEAR UNTIL 1999 WHEN IT REACHES 6 THE DISCOUNT BONDS WERE EXCHANGED FOR A VALUE EQUAL TO 65 OF LOANS AND ALSO MATURE IN 30 YEARS THEY PAY A FLOATING COUPON OF THE LONDON INTERBANK OFFERED RATE PLUS 08125 THE PAR AND DISCOUNT BONDS HAVE THEIR PRINCIPAL PAYMENTS AND ONE YEAR OF INTEREST PAYMENTS BACKED BY US TREASURY 30YEAR ZEROCOUPON BONDS THE PASTDUE INTEREST BONDS ARE NOT BACKED BY US TREASURYS BUT PAY THE SAME FLOATING COUPON RATE AS THE DISCOUNT BONDS AND HAVE A 12YEAR FINAL MATURITY IN THE FIRST DAY OF ISSUANCE YESTERDAY THE PAR BONDS ROSE HALF A POINT FROM THEIR CLOSE ON TUESDAY IN WHENANDIFISSUED TRADING OR 5 FOR A BOND WITH 1000 FACE VALUE TO 48 ACCORDING TO DOW JONES TELERATE EMERGING MARKETS SERVICE MUNICIPAL BONDS EXTENDED THE ADVANCE THAT STARTED TUESDAY AND FINISHED WITH GAINS OF 1/8 POINT TO 1/2 POINT IN SECONDARY DEALINGS THE NORTHEAST MARYLAND WASTE DISPOSAL AUTHORITY'S 620 COUPON REVENUE BONDS MATURING IN 2010 FINISHED 1/2 POINT HIGHER AT 99 3/8 TO YIELD 624 THIS WEEK'S SUDDEN RESURGENCE OF BUYING AFTER THE SLUMP IN MARCH IS DUE TO THE TREASURY BOND MARKET'S STRENGTH AND A LONGAWAITED EBB IN THE FLOW OF NEW MUNI ISSUES TRADERS SAID YESTERDAY FIRST BOSTON CORP PRICED THE PALM BEACH COUNTY FLA HEALTH FACILITIES AUTHORITY'S 80 MILLION OF SERIES 1993 HOSPITAL REVENUE BONDS THE SECURITIES WERE GIVEN YIELDS THAT RANGED FROM 400 IN 1995 TO 630 IN 2022 THE MARCH INFLATION DATA WILL DETERMINE WHETHER OR NOT THE MARKET'S CLIMB LASTS MUCH LONGER SAID A NEW YORK TRADER SOME OF THAT DATA IN THE FORM OF THE PRODUCER PRICE INDEX ARE SCHEDULED TO BE RELEASED TODAY AFTER REMAINING QUIET FOR MUCH OF THE WEEK CORPORATE BOND SALES SURGED AS INTEREST RATES FELL FOR THE THIRD CONSECUTIVE SESSION AND THE MARKET COMPLETED BUSINESS BEFORE FRIDAY'S BOND MARKET HOLIDAY IN SECONDARY TRADING MOST ISSUES ENDED FLAT TO 1/8 POINT HIGHER THE SESSION'S NEWISSUE FARE TOTALING NEARLY 2 BILLION INCLUDED A NUMBER OF UNUSUAL OFFERINGS SUCH AS A 350 MILLION ISSUE OF 20YEAR BONDS FROM KOREA ELECTRIC POWERCORP WHICH IS MAJORITYOWNED BY THE SOUTH KOREAN GOVERNMENT INVESTORS SAID THE BONDS APPEARED TO PRICED WITH A YIELD GENEROUS ENOUGH TO COMPENSATE FOR THE GROWING POLITICAL TENSIONS ON THE KOREAN PENINSULA KOREA ELECTRIC POWER OFFERED ITS 20YEAR DEBENTURES AS 775 ISSUES TO YIELD 7814 OR 084 PERCENTAGE POINT ABOVE THE 30YEAR TREASURY BOND RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS PRICES OF MORTGAGE SECURITIES ENDED MODERATELY HIGHER DESPITE FURTHER EVIDENCE THAT SOME SECURITIES WILL BE REPAID FAR AHEAD OF MATURITY IN THE PRIMARY MARKET A TOTAL OF 400 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE ANNOUNCED ISSUANCE INCLUDED A 200 MILLION FEDERAL HOME LOAN MORTGAGE CORP DEAL SERIES GOLD 1516 AND THE INCREASE OF FEDERAL NATIONAL MORTGAGE ASSOCIATION SERIES 1993G2 TO 5001 MILLION FROM 3001 MILLION MEANWHILE CHASE MANHATTAN BANK BROUGHT OUT A SIZABLE ASSETBACKED SECURITIES ISSUE TOTALING 750 MILLION AND BACKED BY LOANS MADE MOSTLY TO BUY LUXURY CARS CHASE IS A UNIT OF CHASE MANHATTAN CORP IN SECONDARY TRADING 7 MORTGAGE SECURITIES FOR APRIL DELIVERY ISSUED BY ALL THREE AGENCIES FINISHED 6/32 HIGHER GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED AT 100 14/32 FREDDIE MAC GOLD ISSUES FINISHED AT 100 26/32 AND FANNIE MAE ISSUES FINISHED AT 100 20/32 DATA RELEASED YESTERDAY SHOW THAT EARLY PREPAYMENTS ON FANNIE MAE AND GINNIE MAE MORTGAGE SECURITIES SOARED IN MARCH AS HOMEOWNERS RUSHED TO REFINANCE LOANS PREPAYMENTS ON FANNIE MAE 75 THROUGH 85 MORTGAGE SECURITIES WHICH ARE AMONG THE MOST VULNERABLE TO REFINANCINGS SURGED WELL OVER 100 IN MARCH FROM FEBRUARY THE PREPAYMENT INCREASES WERE MORE THAN DOUBLE FEBRUARY'S LEVELS IN SOME CASES AND RESULT FROM THE LOWEST MORTGAGE RATES IN TWO DECADES HOWEVER BECAUSE PREPAYMENTS HAVEN'T REACHED THEIR PROJECTED PEAKS THERE WAS LITTLE MARKET REACTION TO THE NEWS 9304080097 930408 BUSINESS BRIEF U S WEST INC PARTNERSHIP MOVES TO BOOST OVERSEAS CALLING IN RUSSIA U S WEST INC SAID ITS INTERNATIONAL UNIT AND A RUSSIAN TELEPHONE COMPANY ARE INSTALLING THREE NEW DIGITAL SWITCHES THAT ARE EXPECTED TO DOUBLE THE INTERNATIONAL CALLING CAPACITY IN RUSSIA U S WEST INTERNATIONAL AND RUSSIA'S INTERTELECOM HAVE INVESTED 36 MILLION TO INSTALL THE SWITCHES THROUGH A PARTNERSHIP CALLED WESTELCOM THE TWO COMPANIES EXPECT TO BEGIN SERVICE SATURDAY ON TWO SWITCHES IN MOSCOW THAT INITIALLY WILL ADD MORE THAN 4500 LINES AND ANOTHER SWITCH IN ST PETERSBURG THAT WILL ADD 3000 INTERNATIONAL CALLING CIRCUITS U S WEST AN ENGLEWOOD COLOBASED TELECOMMUNICATIONS COMPANY SAID THE SYSTEM MAKES THE SWITCHES THE PRIMARY GATEWAY FOR INTERNATIONAL TRAFFIC TO AND FROM RUSSIA INTERTELECOM IS A JOINT STOCK PARTNERSHIP BETWEEN THE RUSSIAN MINISTRY OF TELECOMMUNICATIONS AND REGIONAL OPERATORS IT PROVIDES INTERCITY AND INTERNATIONAL LONGDISTANCE SERVICES IN RUSSIA 9304080096 930408 BUSINESS BRIEF BMC SOFTWARE INC FIRM TO POST SHARP RISE IN FISCAL 4THQUARTER NET BMC SOFTWARE INC EXPECTS TO REPORT THAT NET INCOME INCREASED BY 35 TO 42 IN THE FISCAL FOURTH QUARTER ENDED MARCH 31 BUOYED BY THE ANNOUNCEMENT BMC'S STOCK CLOSED AT 4575 A SHARE UP 450 IN NATIONAL OVERTHECOUNTER TRADING THE DEVELOPER OF SOFTWARE FOR MAINFRAME COMPUTERS IN SUGAR LAND TEXAS SAID IT EXPECTS TO REPORT NET INCOME OF 19 MILLION TO 20 MILLION OR 73 CENTS TO 75 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 141 MILLION OR 54 CENTS A SHARE BMC SAID THAT REVENUE INCREASED ABOUT 21 TO 655 MILLION FROM 54 MILLION A YEAR EARLIER ALTHOUGH REVENUE IN THE QUARTER WAS LOWER THAN EXPECTED BMC SAID THE EARNINGS ESTIMATE WAS IN LINE WITH ANALYSTS' ESTIMATES THANKS TO TIGHTER CONTROL OVER EXPENSES AS PREVIOUSLY ANNOUNCED THE COMPANY SAID ITS REVENUE WOULD BE LOWER THAN EXPECTED DUE TO WEAKER INTERNATIONAL SALES AND A DELAY IN CLOSING SEVERAL ANTICIPATED LICENSE TRANSACTIONS 9304080095 930408 BUSINESS BRIEF CAMBIOR INC STOCK OFFERING IS PLANNED BY MINING FIRM AND SOQUEM CAMBIOR INC SAID 10 MILLION UNITS EACH INCLUDING ONE COMMON SHARE OF CAMBIOR AND HALF OF A SHAREPURCHASE WARRANT WILL BE SOLD THROUGH AN UNDERWRITING GROUP FOR 14 CANADIAN DOLLARS US1113 EACH SIX MILLION OF THE COMMON SHARES WILL BE NEWLY ISSUED BY THE MONTREAL MINING COMPANY WITH THE REMAINING FOUR MILLION SOLD BY SOCIETE QUEBECOISE D'EXPLORATION MINIERE OR SOQUEM EACH WHOLE WARRANT WILL ENTITLE ITS HOLDER TO BUY ONE COMMON SHARE OF CAMBIOR FOR C1550 UNTIL JUNE 30 1995 IF ALL THE WARRANTS ARE EXERCISED SOQUEM THE QUEBEC GOVERNMENT'S MINERALEXPLORATION CORPORATION WILL DISPOSE OF ITS ENTIRE 174 STAKE IN CAMBIOR'S COMMON STOCK CAMBIOR'S 60 SHARE OF THE OFFERING'S NET PROCEEDS WILL BE ADDED TO WORKING CAPITAL RBC DOMINION SECURITIES INC AND LEVESQUE BEAUBIEN GEOFFRION INC LEAD THE UNDERWRITING GROUP 9304080094 930408 TECHNOLOGY & HEALTH AIRLINES URGED TO FORBID USE OF ELECTRONIC DEVICES MONTREAL THE INTERNATIONAL AIR TRANSPORT ASSOCIATION RECOMMENDED THAT AIRLINES FORBID PASSENGERS FROM USING PORTABLE ELECTRONIC DEVICES DURING TAKEOFF AND LANDING BECAUSE OF POSSIBLE INTERFERENCE WITH AIRCRAFT NAVIGATIONAL EQUIPMENT IN A NEWS RELEASE THE CHAIRMAN OF IATA'S TECHNICAL COMMITTEE SAID THAT WHILE THERE IS NO CONCLUSIVE PROOF THAT DEVICES SUCH AS LAPTOP COMPUTERS COMPACTDISK PLAYERS AND ELECTRONIC GAMES CAUSE INTERFERENCE A NUMBER OF INCIDENTS HAVE OCCURRED WHERE WE CANNOT IGNORE THAT POSSIBILITY THE RECOMMENDATION STRENGTHENS PREVIOUS SUGGESTIONS BY IATA THAT AIRLINES CONSIDER RESTRICTING PASSENGERS' USE OF THE DEVICES SOME AIRLINES INCLUDING NORTHWEST AIRLINES ALREADY DO SO AN IATA SPOKESMAN SAID THE PRECAUTIONARY MEASURE WAS TAKEN AFTER A CONFIDENTIAL SURVEY INDICATED SAFETY CONCERNS AMONG THE ASSOCIATION'S 214 MEMBER AIRLINES NO ACCIDENTS AMONG MEMBER AIRLINES HAVE BEEN LINKED TO SUCH DEVICES HE SAID 9304080091 930408 BUSINESS BRIEF LIBERTY CORP PURCHASE FOR 536 MILLION OF INSURANCE FIRM IS PLANNED LIBERTY CORP GREENVILLE SC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE NORTH AMERICAN NATIONAL CORP FOR ABOUT 536 MILLION LIBERTY A HOLDING COMPANY WITH INTERESTS IN INSURANCE AND BROADCASTING SAID NORTH AMERICAN HOLDERS WOULD RECEIVE 1525 FOR EACH COMMON SHARE THERE ARE 3512632 SHARES OUTSTANDING NORTH AMERICAN A HOLDING COMPANY BASED IN COLUMBUS OHIO IS A MAJOR PROVIDER OF SOCALLED PRENEED INSURANCE WHICH IS USED TO PAY FOR FUNERAL SERVICES THE ACQUISITION WHICH IS SUBJECT TO SEVERAL CONDITIONS INCLUDING APPROVAL BY THE BOARDS OF BOTH COMPANIES AND NORTH AMERICAN SHAREHOLDERS IS EXPECTED TO BE COMPLETED IN AUGUST 9304080090 930408 LEISURE & ARTS FILM A COOL MILLION BUYS THE LITTLE WOMAN BY JULIE SALAMON DIRECTOR ADRIAN LYNE'S LAST BIG MOVIE WAS FATAL ATTRACTION THE 1987 PICTURE THAT ASKED WHAT IF A MARRIED MAN HAS A ONENIGHT STAND WITH A WOMAN WHO BECOMES OBSESSED WITH HIM AND BEGINS STALKING HIM AND HIS FAMILY THE ANSWER THE MAN AND HIS WIFE STAND TOGETHER TO FIGHT OFF AND KILL THE THREAT TO THEIR PREVIOUSLY PEACEFUL EXISTENCE IT WAS A SOUR MOVIE WITH ITS IMPLICATION THAT WORKING WOMEN WERE DOOMED TO BECOME MURDEROUS VIXENS BENT ON DESTROYING HAPPY FAMILIES THE MAN WAS PRESENTED AS A VICTIM ALMOST FORCED TO PHILANDERING BY THE CAREERIST SEDUCTRESS BUT IT BECAME A BIG HIT NOT ONLY WAS IT SHREWDLY MADE LIKE A HORROR MOVIE IT OFFERED THE VOYEURISTIC CAMARADERIE OF THE AFTERNOON TALK SHOWS KILLER ONENIGHT STANDS NOW MR LYNE AND HIS PRODUCER SHERRY LANSING WHO WAS A PRODUCER OF FATAL ATTRACTION HAVE COME UP WITH ANOTHER RIVETING WHAT IF MOVIE THIS ONE IS CALLED INDECENT PROPOSAL AND HERE'S ITS QUESTION WHAT IF A RICH OLDER MAN ROBERT REDFORD OFFERS A HAPPILY MARRIED BUT IMPECUNIOUS YOUNGER COUPLE WOODY HARRELSON AND DEMI MOORE A COOL MILLION IN EXCHANGE FOR A NIGHT WITH THE WIFE APPARENTLY THE FILMMAKERS WERE HOPING THIS QUESTION WOULD STIR THE SAME NERVOUS RESPONSE THE SAME GUILTY TITILLATION ABOUT INFIDELITY AND RETRIBUTION AS FATAL ATTRACTION I'M BETTING THEY'RE WRONG THIS TIME IN ITS UNPLEASANT WAY FATAL ATTRACTION HIT ON A REAL FEAR MEN AND WOMEN DO CHEAT ON THEIR SPOUSES AND DO DREAD EXPOSURE AND PUNISHMENT NOT MANY COUPLES ARE FACED WITH THE INDECENT PROPOSAL PROBLEM CAN THIS MARRIAGE BE SAVED AFTER THE WIFE HAS SLEPT WITH THE RICH MAN THIS PARTICULAR DEAL WITH THE DEVIL MIGHT HAVE WORKED AS A ROMANTIC FANTASY OR A SEX COMEDY OR EVEN A HORROR PICTURE IN FACT THERE WAS A FUNNY PICTURE RELEASED LAST YEAR CALLED HONEYMOON IN VEGAS ON MORE OR LESS THE SAME THEME PART OF INDECENT PROPOSAL IS ALSO SET IN LAS VEGAS BUT IT DOESN'T EVEN MATCH ITS PREDECESSOR WHICH AT LEAST OFFERED A FINALE THAT INCLUDED THE FLYING ELVISES INDECENT PROPOSAL ISN'T EVEN INDECENT WHICH CERTAINLY WILL DISAPPOINT THOSE WILLING TO SIT THROUGH IT FOR THE CHANCE TO OGLE MS MOORE'S BODY PERHAPS REALIZING WHAT A BORE THEY HAVE ON THEIR HANDS THE MOVIE'S PROMOTERS HAVE BEEN ASSURING THE PUBLIC THAT MS MOORE PERFORMED HER OWN SEX SCENES THESE SCENES ALL TAKE PLACE WITH MR HARRELSON WHO PLAYS HER HAPLESS HUSBAND AND NOT WITH MR REDFORD PEOPLE WHO LIKE TO READ MAGAZINES ON HOME DECORATING WILL ESPECIALLY APPRECIATE WATCHING THE MOOREHARRELSON COUPLINGS THE POLISHED EXERCISED SURFACES OF THEIR BODIES HAVE THE HARD GLEAM OF EXPENSIVE FURNITURE TIRELESSLY WAXED THIS SMOOTH YET LIFELESS SEX IS SUPPOSED TO TELL US ALL WE NEED TO KNOW ABOUT THEIR DEEP PASSION AND UNFORTUNATELY IT DOES HOWEVER JUST IN CASE WE WANT TO KNOW MORE THE FILMMAKERS ALSO OFFER CUTE NARRATIONS FROM BOTH MS MOORE AND MR HARRELSON NEITHER OF THESE PERFORMS THE USUAL TASK OF CLUING THE VIEWER INTO THE MOVIE'S POINT OF VIEW SINCE THERE REALLY ISN'T ANY HOWEVER THE IMAGERY AND DIALOGUE WORK TOGETHER IN AT LEAST ONE WAY THEY ARE UNIFIED IN THEIR SUPERFICIALITY THERE ARE A COUPLE OF SLY NOTES IN THE MOVIE AND THEY ARE PLAYED BY OLIVER PLATT WHO DOES A SHREWD TURN AS THE LAWYER FRIEND WHO DRAWS UP THE MILLIONDOLLAR CONTRACT AND MR REDFORD WHO DOES HIS PERFORMING IN LOVELY SUITS AT ALL TIMES OFFERS A HINT OF THE SEDUCTIVE SPIRIT THE PICTURE MIGHT HAVE HAD IF THE SCRIPT AND CHARACTERS HAD BEEN TAILORED AS WELL AS HIS CLOTHES THE DIRECTOR MICHAEL CATONJONES SEEMS TO FEEL GREAT NOSTALGIA FOR ARTIFACTS OF RECENT AMERICAN HISTORY IN MEMPHIS BELLE HE PRESENTED A PORTRAIT OF WORLD WAR II PILOTS THAT MIGHT HAVE BEEN REPRODUCED IN THE ORIGINAL LIFE MAGAZINE FOR THIS BOY'S LIFE HIS FAITHFUL RECREATION OF TOBIAS WOLFF'S POIGNANT AUTOBIOGRAPHY HE LAVISHES ATTENTION ON DETAILS OF 1957 AMERICANA YET IT FEELS AS IF SOMETHING IS MISSING FROM THIS COMINGOFAGE STORY ABOUT A YOUNG BOY AND HIS RELATIONSHIP WITH HIS STEPFATHER PERHAPS IT'S THE INEVITABLE GAP IN A STORY TOLD FROM THE POINT OF VIEW OF A YOUNG BOY WITHOUT AS THE BOOK DOES OFFERING THE INFORMING WISDOM OF EXPERIENCE SO EVERY CHARACTER IS LIMITED BY YOUNG TOBY'S VISION HE IMMEDIATELY RECOGNIZES WHAT HIS MOTHER DOESN'T THAT DWIGHT ROBERT DE NIRO HIS FUTURE STEPFATHER IS A BOOR MR DE NIRO QUICKLY SIGNALS THAT DWIGHT IS ALSO HOSTILE AND MEAN AND THEN THE REST OF THE MOVIE HAS US WAITING FOR HIM TO UNLEASH THAT HOSTILITY WE SEE HIM PRETTY MUCH THE WAY TOBY DOES AS AN UNMITIGATED PIG THOUGH I USUALLY LIKE TO WATCH MR DE NIRO'S FITFUL CHARACTERS THIS ONE SEEMS TOO FAMILIAR TOO FAST THE YOUNG TELEVISION ACTOR LEONARDO DICAPRIO PLAYS TOBY WITH SENSITIVITY IF NOT NUANCE BUT ELLEN BARKIN AS HIS MOTHER OFFERS NUANCE TO GO AROUND WITH HER KNOWING PORTRAYAL OF A WOMAN USED TO DEALING WITH PROBLEMS BY LEAVING THEM BEHIND SHE'S LET HERSELF BE TRAPPED BY DWIGHT AND SHE MANAGES WITH A LOOK ON HER FACE TO EXPRESS HOW THAT FEELS FAR MORE VIVIDLY THAN MR DE NIRO'S LOUDEST YELLS VIDEO TIP REMEMBER WHEN MR REDFORD PLAYED THE CUTE YOUNG HUSBAND REFRESH YOUR MEMORY WITH BAREFOOT IN THE PARK 9304080089 930408 CURRENCY COMPTROLLER ACTS TO AID SMALL BUSINESSES WASHINGTON THE NEW COMPTROLLER OF THE CURRENCY SAID HE PLANS TO MEET WITH BANK EXAMINERS THROUGHOUT THE US TO EXPLAIN THE CLINTON ADMINISTRATION'S EFFORTS TO PROMOTE SMALLBUSINESS LENDING MANY BANKERS COMPLAIN THAT EXAMINERS BURNED BY THOUSANDS OF BANK AND THRIFT FAILURES OVER THE PAST DECADE HAVE BECOME RELUCTANT TO LET BANKS ASSUME RISK BANK SAFETY AND SOUNDNESS DOESN'T MEAN COMPLETE RISKLESSNESS COMPTROLLER EUGENE LUDWIG TOLD A GROUP OF REPORTERS THE NATURE OF LENDING IS TO ASSUME SOME RISK IN HIS MEETINGS WITH EXAMINERS HE WILL DELIVER THE MESSAGE THAT NOBODY IS GOING TO BE REWARDED FOR BEING THE MOST CONSERVATIVE MR LUDWIG SAID LAST MONTH PRESIDENT CLINTON ANNOUNCED A PROGRAM TO SPUR LENDING BY GIVING HEALTHY BANKS NEW FLEXIBILITY TO MAKE LOANS TO SMALL BUSINESSES AND FARMERS EASING SOME REAL ESTATE APPRAISAL REQUIREMENTS AND MAKING IT EASIER FOR BANKS TO SELL FORECLOSED PROPERTY 9304080088 930408 FINANCING BUSINESS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO SAID IT SOLD 250 MILLION OF SUBORDINATED NOTES THROUGH AN UNDERWRITING GROUP HEADED BY MERRILL LYNCH & CO THE TOTAL INCLUDED 50 MILLION BY ITS BANK ONE CLEVELAND NA UNIT 75 MILLION BY ITS BANK ONE DAYTON NA UNIT AND 125 MILLION BY ITS BANK ONE MILWAUKEE NA UNIT THE NOTES WHICH CARRY A 6625 COUPON WILL MATURE ON APRIL 15 2003 AND NOT CALLABLE UNTIL THEN PROCEEDS WILL BE USED TO PAY DOWN DEBT AND INCREASE CAPITAL AND TO PROVIDE FUNDING FOR EXISTING LOANS AND INVESTMENTS THE BANKING COMPANY SAID 9304080087 930408 FINANCING BUSINESS LARIZZA INDUSTRIES INC LARIZZA INDUSTRIES INC TROY MICH SAID IT IS ENGAGED IN NEGOTIATIONS WITH ITS PRINCIPAL BANKS TO CONVERT ABOUT 525 MILLION OF PRINCIPAL AND ACCRUED INTEREST INTO COMMON SHARES LARIZZA SUPPLIES ORIGINAL EQUIPMENT TO THE AUTOMOTIVE INDUSTRY 9304080086 930408 CLINTON MUST RECONSIDER NOMINEE LIST AFTER CUOMO DECLINES HIGHCOURT POST BY PAUL M BARRETT AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON NEW YORK GOV MARIO CUOMO TOOK HIMSELF OUT OF THE RUNNING TO FILL A COMING SUPREME COURT VACANCY SAYING THAT HE PREFERRED TO STAY ACTIVE IN STATE AND NATIONAL POLITICS THE DECISION THROWS WIDE OPEN THE PROCESS OF SELECTING A NEW JUSTICE BECAUSE MR CUOMO HAD BEEN THE CLEAR FRONTRUNNER BEING CONSIDERED BY PRESIDENT CLINTON NOW THE PRESIDENT WILL TURN NOW TO A LONG LIST OF OTHER CANDIDATES WHOM HE AND HIS ADVISERS ALREADY HAD BEEN DISCUSSING WHITE HOUSE OFFICIALS SAID IN A LETTER DATED YESTERDAY MR CUOMO CONFIRMED A TELEPHONE CONVERSATION LAST THURSDAY DURING WHICH HE TOLD THE PRESIDENT THAT HE DIDN'T WANT TO BE CONSIDERED FOR THE SUPREME COURT ON MONDAY LAST WEEK MR CLINTON TRIED TO CALL MR CUOMO TO TELL HIM THAT HE WAS A SERIOUS CANDIDATE TO SUCCEED JUSTICE BYRON WHITE WHO ANNOUNCED MARCH 19 THAT HE PLANS TO RETIRE THIS SUMMER THE TWO MISSED THE CONNECTION BUT IN THE MEANTIME WHITE HOUSE AIDES CONVEYED THE MESSAGE TO MR CUOMO THE GOVERNOR WAS THE ONLY PERSON THE PRESIDENT TRIED TO CONTACT ABOUT THE VACANCY ACCORDING TO CLINTON AIDES BY THURSDAY MR CUOMO HAD DECIDED HE DIDN'T WANT THE JOB AND TOLD THE PRESIDENT WHEN MR CLINTON PHONED FROM AIR FORCE ONE WHILE TRAVELING TO THE ENVIRONMENTAL SUMMIT IN PORTLAND ORE IN HIS LETTER TO PRESIDENT CLINTON MR CUOMO SAID HE FELT HE OWED IT TO MR CLINTON TO MAKE CLEAR NOW THAT I DO NOT WISH TO BE CONSIDERED THE LETTER WAS WARM IN TONE AND PRAISED MR CLINTON'S GOOD WORK FOR AMERICA AND THE WORLD MR CUOMO TOLD THE PRESIDENT HE WANTED TO CONTINUE TO WORK ON NEW YORK'S ECONOMIC PROBLEMS AND STAY ACTIVE IN OUR NATION'S POLITICAL PROCESS HIS DECISION SUGGESTS HE WILL LIKELY SEEK A FOURTH TERM AS GOVERNOR IN THE 1994 ELECTIONS THOUGH HE HAS LONG MUSED ABOUT JOINING THE SUPREME COURT MR CUOMO HAS SHOWN LITTLE ENTHUSIASM FOR THE RELATIVELY CLOISTERED LIVES THE JUSTICES LEAD THIS IS A GUY WHO WAKES UP IN THE MORNING READS THE PAPER AND HAS 10 ISSUES ON HIS MIND THAT HE CAN ACT ON BEFORE BREAKFAST AND THAT'S A LOT TO TURN OFF SAID BRAD JOHNSON THE GOVERNOR'S CHIEF AIDE IN WASHINGTON IN A RECENT INTERVIEW WITH THE TIMES UNION OF ALBANY MR CUOMO COMPARED BEING ON THE COURT TO HEAVEN THEN HE SAID IT WOULD BE LIKE BEING ENTOMBED MR CLINTON DECLINED TO COMMENT ABOUT MR CUOMO'S DECISION HE TOLD REPORTERS THAT THE GOVERNOR WAS TERRIFIC BUT SAID I'M NOT GOING TO DISCUSS THE APPOINTMENT MR CUOMO'S DECISION TO TAKE HIMSELF OUT OF THE RUNNING WAS FIRST REPORTED YESTERDAY BY NEWSDAY WHITE HOUSE AIDES SAID THAT EVEN THOUGH THE PRESIDENT HAD SPENT A LOT OF TIME CONSIDERING MR CUOMO FOR THE VACANCY THE GOVERNOR'S DECISION WOULDN'T SIGNIFICANTLY DISRUPT THE SELECTION PROCESS THERE WERE OTHER NAMES BEING LOOKED AT SAID ONE CLINTON ADVISER MR CLINTON HAS BEEN UNDER CONSIDERABLE PRESSURE TO CHOOSE A WOMAN OR A MEMBER OF A MINORITY GROUP SUCH AN APPOINTMENT WOULD FOLLOW THROUGH ON HIS PROMISE TO MAKE THE FEDERAL GOVERNMENT MORE DIVERSE BUT WHITE HOUSE AIDES BELIEVE THEY WILL HAVE THE OPPORTUNITY TO MAKE AT LEAST ONE AND POSSIBLY TWO OR MORE ADDITIONAL APPOINTMENTS TO THE SUPREME COURT DURING THE CLINTON PRESIDENCY THAT WOULD LEAVE OTHER CHANCES TO FULFILL THE DIVERSITY PLEDGE WITH GOV CUOMO OUT OF THE RUNNING THE CHANCES IMPROVE FOR A GROUP OF FEDERAL APPEALS COURT JUDGES INCLUDING AMALYA KEARSE OF NEW YORK AND PATRICIA WALD OF WASHINGTON BOTH OF WHOM WERE CONSIDERED FOR ATTORNEY GENERAL AND RICHARD ARNOLD OF LITTLE ROCK ARK A LONGTIME FRIEND OF THE PRESIDENT AND HIS WIFE HILLARY RODHAM CLINTON ALSO SAID TO BE UNDER CONSIDERATION ARE JOSE CABRANES CHIEF JUDGE OF THE US DISTRICT COURT IN CONNECTICUT AND STEPHEN BREYER CHIEF OF THE FEDERAL APPEALS COURT IN BOSTON ALL ARE CONSIDERED POLITICALLY MODERATE JUDGE KEARSE WOULD BE THE FIRST BLACK WOMAN TO SERVE ON THE SUPREME COURT WHILE JUDGE CABRANES WOULD BE THE FIRST HISPANIC JUSTICE IN HIS LETTER TO THE PRESIDENT WHICH MR CUOMO RELEASED YESTERDAY HE RECOMMENDED NEW YORK STATE CHIEF JUDGE JUDITH KAYE WHO IS ANOTHER PERSON THE WHITE HOUSE IS SAID TO BE CONSIDERING BUT ONE PROBLEM WITH ELEVATING JUDGE KAYE IS THAT MR CUOMO ONLY RECENTLY PROMOTED HER TO HER CURRENT POST HER DEPARTURE COULD THROW NEW YORK'S TROUBLED TOP COURT INTO FURTHER DISARRAY PEOPLE FAMILIAR WITH THE SELECTION PROCESS PREDICT MR CLINTON WILL TAKE AT LEAST A MONTH TO REACH A FINAL DECISION HIS WIFE PERHAPS HIS MOST IMPORTANT ADVISER ON THE ISSUE HASN'T BEEN ABLE TO SPEND MUCH TIME ON THE MATTER FOR MUCH OF THE PAST TWO WEEKS SHE HAS BEEN IN LITTLE ROCK WITH HER AILING FATHER 9304080085 930408 LEISURE & ARTS BOOKSHELF THE OTHER SIDES OF BURKE BY MAURICE COWLING EDMUND BURKE IS MOST FAMOUS TODAY FOR HIS CLASSIC ANTIUTOPIAN POLEMIC REFLECTIONS ON THE REVOLUTION IN FRANCE PUBLISHED IN 1790 BEFORE THE TERROR GOT UNDER WAY IT PROVED TO BE EERILY PROPHETIC ABOUT THE DISASTERS TO COME BUT AS THE WELLKNOWN IRISH ESSAYIST CONOR CRUISE O'BRIEN REMINDS US IN HIS BIOGRAPHY THE GREAT MELODY UNIVERSITY OF CHICAGO PRESS 767 PAGES 3495 THERE WERE OTHER IMPORTANT SIDES TO BURKE THERE WAS FOR EXAMPLE THE YOUNG IRISHMAN WHO CAME TO LONDON IN THE 1750S IN ORDER TO BE A LAWYER THERE WAS THE BRILLIANT PHILOSOPHICAL ESSAYIST WHO WROTE AN IMPORTANT EARLY BOOK ON AESTHETICS THERE WAS THE POLITICIAN WHO MERCILESSLY ATTACKED VISCOUNT BOLINGBROKE'S TORY ATHEISM AND THEN THERE WAS BURKE THE GREAT DEFENDER OF LIBERTY AGAINST THE INCURSIONS OF THE ENGLISH MONARCHY IN THE 1770S AND 1780S AND THE EXCESSES OF THE FRENCH REVOLUTION IN THE 1790S BURKE PREDICTED THAT THE REVOLUTION WOULD FAIL ONCE IT BECAME OBVIOUS THAT IT WOULD NOT FAIL HE SPENT THE LAST SEVEN YEARS OF HIS LIFE DEMANDING THAT WILLIAM PITT AND THE BRITISH GOVERNMENT TAKE THE LEAD IN DESTROYING IT THE GREAT MELODY IS DR O'BRIEN'S ATTEMPT TO ESTABLISH A HARMONY AMONG THE DIFFERENT PHASES OF BURKE'S THOUGHT THE GREAT MELODY HE DISCERNS IN BURKE'S THINKING SPANS THE DECADES ACCORDING TO DR O'BRIEN BURKE'S ARGUMENTS AGAINST THE REVOLUTION IN THE 1790S EMERGED NATURALLY OUT OF HIS ARGUMENTS AGAINST THE BRITISH MONARCHY IN THE 1770S AND 1780S HOW CONVINCING IS THIS PICTURE ON THE NEGATIVE SIDE IT MUST BE SAID THAT THE GREAT MELODY IS TOO LONG AND LOSES ITS WAY BECAUSE OF DR O'BRIEN'S INSISTENCE THAT BURKE'S IRISHNESS WAS THE MOST IMPORTANT FEATURE OF HIS POLITICS THE BOOK ALSO INCLUDES A SILLY CORRESPONDENCE WITH SIR ISIAH BERLIN ON THE QUESTION OF WHETHER BURKE WAS A REACTIONARY DESPITE THESE WEAKNESSES DR O'BRIEN HAS GIVEN US THE BEST NARRATIVE WE HAVE OF BURKE'S LIFE AND THOUGHT THE GREAT MELODY WILL PROBABLY MAINTAIN THIS REPUTATION FOR MANY YEARS TO COME DR O'BRIEN IS RIGHT TO PRESENT BURKE'S PREREVOLUTIONARY WRITINGS AS AFFIRMATIONS OF A LIBERTARIANISM THAT ASSUMED THAT CHANGE NOVELTY AND GROWTH COULD BE PART OF A STATUS QUO THE ANTIREVOLUTIONARY WRITINGS OF THE 1790S WERE NOT HOWEVER LIBERTARIAN IN THIS SENSE IN BOTH TONE AND SUBSTANCE THEY WERE REACTIONARY THEY WERE THE FOUNDATION STONES OF THE EUROPEAN COUNTERREVOLUTION WHICH INTERPRETED THE REVOLUTION AS AN ATTACK ON CHRISTIANITY AND THE STRUCTURE OF SOCIETY IN THIS SENSE BURKE'S WRITINGS DROWN OUT DR O'BRIEN'S MELODY IN ONE OF THE MOST BRILLIANT CACOPHONIES OF RHETORICAL DENUNCIATION IN ENGLISH LITERATURE DR O'BRIEN THOUGH NO ADMIRER OF THE REVOLUTION IS EMBARRASSED LIKE MANY OF BURKE'S VICTORIAN INTERPRETERS BY BURKE'S LANGUAGE BUT THE TRUTH IS THAT ANY ATTEMPT TO PRESENT BURKE'S ATTITUDE TOWARD THE REVOLUTION AS LIBERAL OR LIBERTARIAN STUBS ITS TOE ON THIS LANGUAGE BURKE REPEATEDLY DEMANDED THE PHYSICAL DESTRUCTION OF THE REVOLUTION AND BELIEVED THAT THE RESTORATION TO FRANCE OF ITS NATURAL ORDER NECESSITATED THE CREATION OF A CHRISTIAN MILITARY ALLIANCE BURKE JUSTIFIED THE DEMAND FOR A MILITARY ALLIANCE ON THE GROUNDS THAT THE REVOLUTION WAS THE FIRST OCCASION SINCE THE CONVERSION OF CONSTANTINE ON WHICH POLITICAL POWER HAD BEEN USED TO SUBVERT CHRISTIANITY AND THAT THE JACOBINS WHO HAD MADE THE REVOLUTION WERE BY DOCTRINE AND INTENTION DELIBERATELY ANTICHRISTIAN THIS IDEA ONCE ARTICULATED HAD ITS OWN MOMENTUM THE WHOLE OF BURKE'S WRITING THEREAFTER WAS A PROLONGED ASSERTION THAT REVOLUTIONARIES DISPLAYED A COLD MALIGNITY OF SPIRIT RESEMBLING THE PRINCIPAL OF EVIL HIMSELF ACCORDING TO BURKE THE REVOLUTIONARIES BASED THEMSELVES ON A CANNIBAL PHILOSOPHY SPRINGING FROM NIGHT AND HELL WITH OBSCENE HARPIES DECKING THEMSELVES IN DIVINE ATTRIBUTES AND POLLUTING EVERYTHING WITH THE SLIME OF THEIR FILTHY OFFAL THIS WAS THE TONE IN WHICH BURKE MOUNTED A PREEMPTIVE ATTACK ON SOME OF THE CHIEF ASSUMPTIONS ON WHICH THE POLITICAL LIFE OF THE MODERN WORLD HAS BEEN BASED AMONG THE COMMONLY HELD IDEAS THAT BURKE ATTACKS ARE THE ASSUMPTIONS THAT LOWBORN PERSONS HAVE A RIGHT TO RULE THAT LIBERTY IS INSEPARABLE FROM EQUALITY AND THAT BOTH TEND NATURALLY TO ISSUE IN THE MORAL FRATERNITY THAT THE REVOLUTION HOPED TO ESTABLISH CAN BURKE BE MADE RELEVANT TO THE MODERN WORLD IN CERTAIN RESPECTS HE CANNOT IT IS IMPOSSIBLE AT THIS STAGE IN WORLD HISTORY EASILY TO DISEMBARRASS OURSELVES OF THE ASSUMPTIONS OF 1789 WHICH ARE DEEPLY EMBEDDED IN OUR POLITICAL RHETORIC WHAT BURKE CAN DO HOWEVER IS TO REMIND US THAT THE GREAT DEMOCRATIC EXPERIMENT THAT HAS BEEN GOING ON FOR THE PAST 300 YEARS GIVES LITTLE GROUND FOR COMPLACENCY BURKE SHOWS THAT LIBERTY EQUALITY FRATERNITY THE JACOBIN SLOGAN OF 1789 ARE EVEN MORE CONTESTABLE THAN THE SELFEVIDENT PRINCIPLES OF 1776 MORE IMPORTANTLY HE CAN REMIND US THAT NEITHER THE PRINCIPLES OF 1789 NOR THE PRINCIPLES OF 1776 HAVE DONE AS MUCH TO IMPROVE THE CONDITION OF THE MODERN WORLD AS CAPITALISM AND THE ECONOMIC PRINCIPLES OF ADAM SMITHSHIRT MR COWLING IS A FELLOW OF PETERHOUSE CAMBRIDGE UNIVERSITY AND THE AUTHOR OF MILL AND LIBERALISM AND RELIGION AND PUBLIC DOCTRINE IN MODERN ENGLAND 9304080084 930408 BUSINESS BRIEF SPRINT CORP AUTOMATED OPERATOR SYSTEM MIGHT LEAD TO STAFF CUTS SPRINT CORP SAID ITS PLAN TO USE COMPUTERIZED VOICERESPONSE SYSTEMS MIGHT LEAD TO A REDUCTION IN ITS STAFF OF 1200 OPERATORS BUT THE KANSAS CITY MO LONGDISTANCE COMMUNICATIONS COMPANY SAID IT DOESN'T KNOW MANY JOBS MIGHT BE LOST OUR AGENT REQUIREMENTS MAY ULTIMATELY BE REDUCED FROM USE OF THE NEW SYSTEM A COMPANY SPOKESMAN SAID SHE ADDED THAT WHILE NO JOBS WILL BE LOST THIS YEAR BEYOND NORMAL ATTRITION WE CAN'T FORECAST BEYOND THIS YEAR AN ORGANIZATION FOR OPERATORS CALLING ITSELF THE SPRINT EMPLOYEE NETWORK DEMANDED THAT SPRINT MANAGEMENT DISCLOSE HOW MANY OF THE COMPANY'S LONGDISTANCE OPERATORS WILL LOSE THEIR JOBS WHEN THE NEW EQUIPMENT IS ACTIVATED VOICERESPONSE COMPUTERS WHICH ARE ALSO USED BY SPRINT'S LARGER RIVAL AMERICAN TELEPHONE & TELEGRAPH CO ACT AS ELECTRONIC OPERATORS CALLERS REQUEST SERVICES BY SPEAKING INTO THE PHONE OPERATORS WOULD BE AVAILABLE AT THE PUSH OF A BUTTON SPRINT SAID THE COMPANY PLANS TO BEGIN TESTING ITS SYSTEM NEXT MONTH IN KANSAS CITY 9304080083 930408 WHO'S NEWS GENERAL MILLS INC GENERAL MILLS INC MINNEAPOLIS LESLIE FRECON 39 YEARS OLD FORMERLY A VICE PRESIDENT WAS NAMED SENIOR VICE PRESIDENT CORPORATE FINANCE OF THIS PACKAGED FOOD AND RESTAURANTS CONCERN SUCCEEDING DAVID KELBY 56 WHO IS RETIRING 9304080082 930408 REVERSING COURSE AT TREASURY BENTSEN OPPOSES TAX BREAKS SEN BENTSEN PUSHED HE FAVORS AN ENERGY LEVY TEXAS OIL PEOPLE DISLIKE SHIFTS HIS STANCE ON IRAS A STRONG FORCE IN THE CABINET BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL AS A SENATOR FROM TEXAS LLOYD BENTSEN EARNED THAT DERISIVE NICKNAME FOR THE MANY TAX BREAKS HE PUSHED AS A SENATOR HE PROTECTED THE OIL AND GAS INDUSTRY AS TREASURY SECRETARY HE IS CHAMPIONING AN ENERGY TAX THAT THE INDUSTRY DISLIKES AS A SENATOR HE CAMPAIGNED FOR MOREGENEROUS INDIVIDUAL RETIREMENT ACCOUNTS AS TREASURY SECRETARY HE DEEMED SUCH AN EXPANSION OF THE IRA TAX BREAK TOO COSTLY AS A SENATOR HE VOWED NOT TO TAMPER WITH THE POPULAR TAX DEDUCTION FOR MORTGAGE INTEREST AS TREASURY SECRETARY HE TRIED TO CURTAIL IT THAT MR BENTSEN IS A HEAVY ISN'T A SURPRISE THE SURPRISE IS HOW QUICKLY HE HAS MOVED AWAY FROM APPROACHES AND SPECIFIC STANDS HE EMBRACED IN HIS 22YEAR SENATE CAREER LLOYD BENTSEN HAS BECOME A NATIONAL FIGURE SAYS DAN ROSTENKOWSKI THE ILLINOIS DEMOCRAT WHO HEADS THE HOUSE WAYS AND MEANS COMMITTEE OLD ENOUGH TO BE PRESIDENT CLINTON'S FATHER MR BENTSEN AT AGE 72 HAS EMERGED AS THE PATRIARCH OF THE 40SOMETHING ADMINISTRATION AND PERHAPS THE SINGLE MOST INFLUENTIAL CABINET MEMBER PRESIDENT CLINTON HAS HIRED SHARPER ECONOMIC MINDS AND MORE CREATIVE POLITICAL STRATEGISTS BUT NO ONE OFFERS THE BENTSEN COMBINATION HE REALLY IS THE ONE PERSON WHO CAN SPEAK WITH REAL FINANCIAL KNOWLEDGE AND WITH CONGRESSIONAL EXPERTISE AND WHO CAN SPEAK TO CLINTON AS A PEER AS A NATIONAL POLITICIAN SAYS GENE SPERLING A WHITE HOUSE ECONOMICPOLICY AIDE MR BENTSEN HAS COME A LONG WAY FROM HIS EMBARRASSINGLY UNSUCCESSFUL 1976 CAMPAIGN FOR PRESIDENT AS THE BUSINESSMAN'S BEST FRIEND HAVING SHED SOME OF HIS CONSERVATISM HE NOW STAUNCHLY SUPPORTS TAX INCREASES FOR THE RICH THE TRANSFORMATION BEGAN IN THE 1988 PRESIDENTIAL RACE THOUGH THE DUKAKISBENTSEN TICKET LOST MR BENTSEN WON PRAISE FOR HIS ENERGETIC DIGNIFIED STYLE HIS WITHERING ATTACK ON DAN QUAYLE SENATOR YOU'RE NO JACK KENNEDY WAS ONE OF THE BESTREMEMBERED LINES OF THE CAMPAIGN NOTWITHSTANDING THE EVOLUTION AWAY FROM EARLIER CONSERVATIVE STANDS MR BENTSEN REMAINS MORE CONSERVATIVE THAN MANY OTHER CLINTON APPOINTEES HE HAS URGED THE PRESIDENT TO HUSBAND HIS POLITICAL CHITS AND NOT RUSH TO ASK CONGRESS FOR HUGE SUMS FOR RUSSIA AND FOES OF HEALTHCARE PRICE CONTROLS ARE COUNTING ON HIM TO BE AN ALLY IN INTERNAL DELIBERATIONS MR BENTSEN HAS ASSEMBLED A WELLREGARDED MIDDLEOFTHEROAD TEAM TAKING ROGER ALTMAN FROM WALL STREET TO BE DEPUTY SECRETARY FRANK NEWMAN FROM BANK OF AMERICA TO OVERSEE BANKING AND DOMESTIC FINANCE AND ECONOMIST LAWRENCE SUMMERS FROM THE WORLD BANK TO HANDLE INTERNATIONAL MATTERS THESE TOP LIEUTENANTS OLD WASHINGTON HANDS SAY ARE CONSERVATIVE ENOUGH TO SERVE A REPUBLICAN MR BENTSEN ALSO IS TURNING OUT TO BE AN EFFECTIVE AMBASSADOR FOR THE NEW PRESIDENT CONFERRING WITH MEXICAN PRESIDENT CARLOS SALINAS AND FINANCE MINISTER PEDRO ASPE JOINING MR CLINTON AT HIS SUMMIT WITH RUSSIAN PRESIDENT BORIS YELTSIN AND IMPRESSING FINANCE MINISTERS FROM THE GROUP OF SEVEN INDUSTRIAL POWERS WHO WERE UNDERWHELMED BY MR BENTSEN'S PREDECESSOR NICHOLAS BRADY HIS EXPERIENCE AS A POLITICIAN REALLY SHOWS THROUGH SAYS CANADIAN FINANCE MINISTER DONALD MAZANKOWSKI YOU DON'T HAVE TO BE CONFRONTATIONAL TO SHOW STRONG LEADERSHIP THAT'S HIS STYLE IN AN ADMINISTRATION OF HUGGERS AND JOGGERS MR BENTSEN'S SOMETIMESALOOF CHAIRMANOFTHEBOARD DEMEANOR DOESN'T QUITE FIT WHEN PRESIDENT CLINTON'S ECONOMIC ADVISERS SIT DOWN TO TALK IT'S BOB LAURA LEON ALICE AND MR SECRETARY DURING RECENT BUDGET DELIBERATIONS CHIEF WHITE HOUSE ECONOMIST LAURA TYSON ALERTED NATIONAL ECONOMIC ADVISER ROBERT RUBIN THAT IT WAS MR BENTSEN'S BIRTHDAY MR RUBIN ARRANGED FOR A SINGLE SLICE OF CAKE TO BE DELIVERED TO A ROOSEVELT ROOM MEETING AT THE END MR CLINTON LED A CHORUS OF HAPPY BIRTHDAY DEAR LLOYD AND THEN ASKED HOW LONG IT HAD BEEN SINCE SO MANY PEOPLE HAD CALLED THE RESERVED MR BENTSEN BY HIS FIRST NAME EVERYBODY LAUGHED WHEN MR CLINTON WAS SEARCHING FOR A TREASURY SECRETARY MR RUBIN THEN AN ADVISER AND COHEAD OF GOLDMAN SACHS & CO SUGGESTED MR BENTSEN WHEN MR CLINTON ASKED MR BENTSEN FOR RECOMMENDATIONS HE ADVANCED MR RUBIN NOTING THE PRESIDENT TOOK HIS ADVICE MR RUBIN NOW JOKES I HAVE MORE INFLUENCE AND SAYS HE HAS TOLD MR BENTSEN AS MUCH THE TWO MEN ARE LONGTIME ACQUAINTANCES MR RUBIN HAS CONTRIBUTED TO MR BENTSEN'S CAMPAIGNS AND EVEN MANAGED SOME OF MR BENTSEN'S PERSONAL FUNDS ELECTED TO THE HOUSE OF REPRESENTATIVES AT AGE 27 BACK IN 1948 MR BENTSEN LEFT SIX YEARS LATER TO MAKE SOME MONEY HE MADE MILLIONS THEN BEAT GEORGE BUSH IN 1970 TO BECOME A SENATOR FROM TEXAS AND TOOK CONTROL OF THE SENATE'S TAXWRITING COMMITTEE IN 1986 BEFORE MR CLINTON'S CALL CAME MR BENTSEN HAD BEEN PLANNING TO LEAVE POLITICS NEXT YEAR WHEN HIS SENATE TERM EXPIRED HE HAD EVEN BOUGHT A VACATION HOUSE NEAR SAN DIEGO ONCE MR CLINTON HAD PICKED HIS ECONOMIC TEAM MR BENTSEN MADE HIS MARK AT THE FIRST POSTELECTION MEETING IN LITTLE ROCK ARK HE SUGGESTED THAT MR CLINTON WHO WASN'T PREPARED TO DO WHAT WAS NECESSARY TO HALVE THE 1997 DEFICIT AS HE HAD PROMISED INSTEAD TRY TO CUT IT BY 145 BILLION ROUGHLY HALF OF WHAT THE DEFICIT WAS WHEN MR CLINTON MADE THE VOW BY WHITE HOUSE ACCOUNTING THE CLINTON CUTS PROPOSED IN FEBRUARY CAME TO 140 BILLION OUR GOALS WERE VERY MUCH INFLUENCED BY HIS MR BENTSEN'S VIEW OF WHAT WAS A POLITICALLY ATTAINABLE GOAL AND WHAT WAS A CREDIBLE ONE MS TYSON SAYS BUDGET DIRECTOR LEON PANETTA AND HIS DEPUTY ALICE RIVLIN WANTED TO WHACK SOCIAL SECURITY COSTOFLIVING ADJUSTMENTS MR BENTSEN ARGUED THAT THAT WASN'T WISE AND MR CLINTON DIDN'T TRY MR CLINTON'S POLITICAL ADVISERS CAUTIONED AGAINST ANY TAX INCREASE ON THE MIDDLE CLASS MR BENTSEN ADVISED AN ENERGY TAX MR CLINTON PROPOSED ONE AFTER MR BENTSEN REASSURED HIM HE COULD SURVIVE IT POLITICALLY THE TREASURY SECRETARY PLAYED A CRUCIAL ROLE IN LATE JANUARY WHEN HE FLOATED THE ENERGYTAX IDEA ON NBC'S MEET THE PRESS ALTHOUGH VICE PRESIDENT ALBERT GORE HAD DROPPED HINTS EARLIER MR BENTSEN'S REMARKS MADE HEADLINES AND SET OFF A SPECTACULAR BONDMARKET RALLY MR BENTSEN WHO HADN'T ALERTED THE PRESIDENT WAS STUNNED BY THE RESPONSE BUT MANAGED TO GET SOME MILEAGE OUT OF IT TO MAKE THE CASE FOR AN ENERGY TAX AT A WHITE HOUSE MEETING A FEW DAYS LATER HE READ OUT LOUD A NEWSPAPER STORY ATTRIBUTING THE SURGE IN BOND PRICES AND THUS THE WIDELY APPLAUDED DROP IN LONGTERM INTEREST RATESTO HIS COMMENTS ON THE PROPOSAL WHEN IT CAME TO DESIGNING THE ENERGY TAX MR BENTSEN SHOWED SOME INDEPENDENCE FROM HIS OLD FRIENDS AND CONSTITUENTS HE INITIALLY WANTED A SALES TAX BASED ON ENERGY PRICES WHICH WOULD HAVE HIT ALL FUELS EVENLY MR GORE WANTED TO PENALIZE DIRTIER FUELS AND PUSHED FOR A TAX BASED ON HEAT CONTENT AS MEASURED IN BRITISH THERMAL UNITS BUT MR BENTSEN RAISED A SURPRISING OBJECTION A BTU TAX FAVORED OIL IT WAS A REMARKABLE ARGUMENT FROM A MAN WHO ACCORDING TO FIGURES FROM THE CENTER FOR RESPONSIVE POLITICS RAISED 268000 IN CAMPAIGN CONTRIBUTIONS FROM THE OIL AND GAS INDUSTRY IN 1988 I WOULD EXPECT HIM TO KNOW WHAT HIS ROOTS ARE BUT HE IS A TEAM PLAYER SAYS JOHN REX JONES A TEXAS WILDCATTER AND BENTSEN CONTRIBUTOR BESIDES MR JONES ADDS A TREASURY SECRETARY FROM TEXAS HAS TO AVOID EVEN THE APPEARANCE OF BENDING POLICY TO HELP THE OIL INTERESTS IN THE END MR CLINTON PROPOSED A BTU TAX WITH A SURCHARGE ON OIL ALWAYS THE SHREWD POKER PLAYER MR BENTSEN KNOWS WHEN TO HOLD 'EM AND WHEN TO FOLD 'EM HE WON'T TRY TO CONVINCE MR CLINTON OF SOMETHING UNLESS HE THINKS HE CAN WIN HE SOFTPEDALED A PET PROPOSAL TO EXPAND INDIVIDUAL RETIREMENT ACCOUNTS WHICH GIVE TAXPAYERS A BREAK IF THEY SET ASIDE SAVINGS FOR RETIREMENT BY SACRIFICING ONE OF HIS OWN CHOICE REFORMS MR BENTSEN PUT HIMSELF IN A STRONGER POSITION TO SHAPE OTHER PARTS OF THE ECONOMIC PLAN THERE ARE TWO WAYS TO SAVE HE SAYS IN AN INTERVIEW ONE IS BY PERSONAL SAVING AND THE OTHER IS BY CUTTING THE DEFICIT IN EITHER INSTANCE YOU HAVE MORE MONEY FOR THE PRIVATE SECTOR AS A SENATOR MR BENTSEN CHOSE THE FIRST AS TREASURY SECRETARY THE SECOND I WAS IN A POSITION TO DO MORE ABOUT THE DEFICIT THIS TIME THAN I WAS IN THE SENATE HE EXPLAINS INDEED WHEN ASKED WHAT HE WANTS TO ACCOMPLISH AS TREASURY SECRETARY MR BENTSEN PAUSES FOR SEVERAL MOMENTS AS HE OFTEN DOES IN CONVERSATION AND SAYS I'D LIKE VERY MUCH TO HAVE CONTRIBUTED IN A MAJOR WAY TO TURNING THIS COUNTRY AROUND IN TERMS OF DEFICIT FINANCING ONE INDICATION OF MR BENTSEN'S DEFICITSHRINKING RESOLVE WAS HIS WILLINGNESS TO LIMIT THE MORTGAGEINTEREST TAX DEDUCTION IN 1987 WHEN CONGRESS PASSED A LAW THAT PREVENTS TAXPAYERS FROM DEDUCTING INTEREST PAYMENTS ON MORTGAGES OF MORE THAN 1 MILLION MR BENTSEN AND HIS HOUSE COUNTERPART MR ROSTENKOWSKI PROMISED THE REALESTATE LOBBY THAT THEY WOULDN'T LOWER THE THRESHOLD IN LATER YEARS IN HIS NEW JOB MR BENTSEN SAID HE WASN'T BOUND BY THAT PLEDGE AND PROPOSED THAT MR CLINTON DO JUST WHAT THE INDUSTRY FEARED WORRIES ABOUT THE REALESTATE MARKET KEPT A CHANGE OUT OF THE CLINTON TAX PLAN HOWEVER MR BENTSEN SAYS MR BENTSEN'S INFLUENCE EXTENDS OUTSIDE THE ADMINISTRATION AND THAT ADDS TO HIS STATURE WITHIN IT THE WHITE HOUSE DEPLOYS THE 22YEAR SENATE VETERAN ON CAPITOL HILL WHEN IT NEEDS HEAVY ARTILLERY PARTICULARLY TO SHORE UP MODERATE SENATE DEMOCRATS WHEN LOUISIANA SEN BENNETT JOHNSON BEGAN GROUSING ABOUT THE ENERGY TAX AND CALLING FOR A VALUEADDED TAX INSTEAD MR BENTSEN CALLED TO MAKE HIS DISPLEASURE KNOWN THE LAWMAKER'S CRITICISM HAS SINCE BEEN MORE SUBDUED ONE REASON MR BENTSEN IS EFFECTIVE IN WASHINGTON IS THAT HE IS KNOWN TO REMEMBER WHO WAS A FRIEND AND WHO WASN'T MR BENTSEN'S SENATE OFFICE MAINTAINED A FRIENDLY FILE SO HIS STAFF COULD CULL LETTERS FROM CONTRIBUTORS AND ACQUAINTANCES WHERE DO YOU KEEP THE UNFRIENDLY FILE' DEPUTY SECRETARY ALTMAN ONCE ASKED UP HERE MR BENTSEN SAID TAPPING HIS TEMPLE ENERGY INTERESTS QUICKLY REALIZED THAT THE BENTSEN TREASURY WOULD TINKER WITH DETAILS OF ITS ENERGY TAX BUT ONLY FOR THOSE WHO HELD BACK FROM PUBLICLY ATTACKING THE PROPOSAL THE WORK SCHEDULE OF A TREASURY SECRETARY WOULD BE GRUELING FOR ANYONE LET ALONE A 72YEAROLD I'VE FOUND MYSELF ON SEVENDAY WEEKS EIGHTDAY WEEKS HE TOLD A CONGRESSIONAL HEARING RECENTLY A COUPLE OF WEEKENDS AGO I LEFT ON A FRIDAY NIGHT TO ATTEND THE G7 MEETING ON SATURDAY FOR SEVEN HOURS AND CAME BACK SATURDAY NIGHT COMMERCIAL I MIGHT ADD AND I PICKED UP SOME 9600 FREQUENTFLIER MILES FOR TREASURY IN FACT THE TREASURY DOESN'T CLAIM THE FREQUENTFLIER MILES THAT ITS OFFICIALS ACCRUE AND WON'T LET EMPLOYEES CLAIM THEM FOR PERSONAL USE EITHER THAT ALSO WAS THE WEEKEND OF THE TREASURY AGENTS' ILLFATED RAID ON THE CULT NEAR WACO TEXAS AFTER RETURNING FROM LONDON SATURDAY NIGHT MR BENTSEN WHOSE DEPARTMENT INCLUDES THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS SPENT MUCH OF THE NEXT NIGHT ON THE PHONE DEALING WITH THAT CRISIS AND HE BEGAN AN 11HOUR DAY THE NEXT MORNING AT 745 THROUGHOUT MR BENTSEN KEEPS A SENSE OF HUMOR THAT OFTEN SURPRISES THOSE WHO ARE PUT OFF BY HIS SOMEWHAT DISTANT MANNER AT THE G7 MEETING IN LONDON BRITISH CHANCELLOR NORMAN LAMONT SPOKE OF THE SCHEDULE PRONOUNCING IT SHEDJEWL IN THE BRITISH FASHION WE SAY SKEDJEWL' MR BENTSEN NOTED THEN WITH THE TIMING OF A BORSCHT BELT COMIC HE ADDED I GUESS WE GO TO DIFFERENT SHULS 9304080081 930408 LETTERS TO THE EDITOR A NEW GENERATION OF FAMILY DOCTORS IN RESPONSE TO THE MARCH 19 LETTER TO THE EDITOR WHY FAMILY DOCTORS ARE DISAPPEARING FROM CAROLYN C NEWSOM PRESIDENT OF STRATEGY IMPLEMENTATION SOLUTIONS THIS IS JUST WHAT YOU WOULD EXPECT FROM THE PRESIDENT OF A SOLUTIONS COMPANY CORPORATE PAP WITH NO HEART NO EMOTIONS AND INACCURATE THE DESIRE TO BE A FAMILY PRACTITIONER OR PRIMARY CARE PHYSICIAN IS AT ITS ZENITH MORE THAN 50 OF ENTERING MEDICAL STUDENTS ARE OPTING AT LEAST AT THE ONSET TO BE FAMILY DOCTORS OF ENTERING FRESHMAN MORE THAN 30 ARE FEMALES WHO HAVE A TENDENCY TO BE LESS ENTREPRENEURIAL MORE CARING AND LESS CONCERNED WITH CASH FLOW THE FAMILY PRACTICE RESIDENCY AT OUR VALLEY MEDICAL CENTER HAS NATIONAL RECOGNITION AND IS UNABLE TO ACCOMMODATE ALL THE APPLICANTS MS NEWSOM'S LETTER ADDRESSES ONLY THE FINANCIAL ASPECTS AND HER LAST REMARK WHAT GETS REWARDED GETS DONE IS MOST UNBECOMING AND IS ABSOLUTELY CONTRARY TO THE BASIC PHILOSOPHY OF THE PRACTICE OF MEDICINE 9304080080 930408 STATES PRIMED TO SEND CLINTON A MESSAGE BY JOHN H FUND OVER THE PAST FIVE WEEKS WHILE THE BELTWAY HAS BEEN ENRAPTURED WITH BILL CLINTON'S LEGISLATIVE PROWESS REPUBLICANS HAVE CAPTURED SEVEN PREVIOUSLY DEMOCRATIC STATE SENATE SEATS IN STATES RANGING FROM CONNECTICUT TO MISSOURI ON TUESDAY THEY WON CONTROL OF WISCONSIN'S STATE SENATE FOR THE FIRST TIME SINCE THE WATERGATE YEAR OF 1974 THESE VICTORIES ARE IMPORTANT NOW THAT A GOP FILIBUSTER HAS TRANSFORMED THE CLINTON LEGISLATIVE BLITZKRIEG INTO SOMETHING THAT MORE CLOSELY RESEMBLES WORLD WAR I TRENCH WARFARE TIME MAY NO LONGER BE ON BILL CLINTON'S SIDE POLLS SHOW THAT DOUBTS ABOUT HIS PROGRAM INCREASE THE LONGER PEOPLE HAVE TO STUDY IT AND A SERIES OF SPECIAL ELECTIONS OVER THE NEXT TWO MONTHS WILL GIVE VOTERS A CHANCE TO RENDER THEIR OWN VERDICT IF DEMOCRATS SHOULD LOSE SEVERAL OF THESE ELECTIONS ESPECIALLY THE HIGHPROFILE TEXAS RACE TO FILL LLOYD BENTSEN'S US SENATE SEAT LOOK FOR MANY DEMOCRATS WHO RELUCTANTLY SIDED WITH THEIR PRESIDENT ON THE NONBINDING BUDGET RESOLUTION TO START EYEING THE POLITICAL EXIT DOORS IN JULY WHEN THE TIME TO LOCK IN THE CLINTON TAX INCREASES COMES SAVVY DEMOCRATS ARE ALREADY TALKING ABOUT WHAT HAPPENED TO THE ONE CANDIDATE THIS YEAR WHO HAS WRAPPED HIMSELF AROUND BILL CLINTON JEFF NEUBAUER WHO CHAIRED MR CLINTON'S 1992 WISCONSIN CAMPAIGN RAN IN LAST TUESDAY'S DEMOCRATIC PRIMARY TO FILL LES ASPIN'S HOUSE SEAT HE PUT MR CLINTON'S PICTURE ON THE COVER OF HIS BROCHURE RATHER THAN HIS OWN AND RAN AN AD CALLING FOR HIGHER TAXES ON THE RICH ONCE FAVORED TO WIN HE LOST 53 TO 27 TO PETER BARCA A POPULIST DEMOCRAT WHO EMPHASIZED GETTING TOUGH ON WELFARE AND OPPOSED TAX HIKES UNTIL DEEP SPENDING CUTS WERE MADE MR NEUBAUER'S DEFEAT IS ONLY THE LATEST SIGNAL THAT THE PUBLIC IS INCREASINGLY SKEPTICAL OF MR CLINTON LAST WEEK'S CBS NEWS/NEW YORK TIMES POLL FOUND THAT 47 OF THOSE SURVEYED LIKED MR CLINTON'S HANDLING OF THE ECONOMY WHILE 37 DISAPPROVED HUMPHREY TAYLOR PRESIDENT OF THE HARRIS POLL IS SURPRISED THAT MR CLINTON'S HARRIS RATINGS ARE ONLY 52 POSITIVE AND 44 NEGATIVE FAR FROM RECOVERING AFTER HIS ROUGH START ON ZOE BAIRD AND GAYS IN THE MILITARY HE HAS SEEN HIS SUPPORT SINK HE SAYS CLINTON'S ABILITY TO CONVINCE DEMOCRATS IN CONGRESS THAT HIS PROGRAM IS POPULAR IS IN SERIOUS DOUBT IF TO PARAPHRASE FINLEY PETER DUNNE'S FICTIONAL MR DOOLEY THE SUPREME COURT FOLLOWS THE ELECTION RETURNS THEN CONGRESS CAN BE POSITIVELY STAMPEDED BY THEM THIS WEEK'S WISCONSIN RACES KICKED OFF A SERIES OF SPECIAL ELECTIONS THAT WILL BE THE CLOSEST THING THE NATION WILL HAVE TO A REFERENDUM ON THE CLINTON PROGRAM JOHN MCLAUGHLIN A REPUBLICAN POLLSTER SAYS THE COUNTRY ISN'T EXPERIENCING A 1970SSTYLE TAX REVOLT HE NOTES THAT NORMALLY UNCONTROVERSIAL BOND ISSUES FAILED LAST YEAR IN STATES RANGING FROM NEW YORK TO CALIFORNIA WE ARE IN THE MIDST OF A SPENDING REVOLT HE SAYS PEOPLE IN THEORY MIGHT PAY HIGHER TAXES FOR BETTER SERVICES BUT THEY BELIEVE GOVERNMENT IS NO LONGER A GOOD BUY UNTIL MIDJUNE THE POLITICAL CALENDAR IS FILLED WITH SPECIAL ELECTIONS THAT WILL PROVIDE CLUES TO THE PUBLIC'S MOOD ALL POLITICS ARE LOCAL BUT IF DEMOCRATS LOSE MANY OF THESE NATIONAL LESSONS WILL BE DRAWN WATCH THEN FOR A SUDDEN WHITE HOUSE WILLINGNESS TO COMPROMISE ON MORE ELEMENTS OF THE PRESIDENT'S PROGRAM THAN JUST THE STIMULUS PACKAGE A SUMMARY APRIL 13 WHEN REP MIKE ESPY BECAME AGRICULTURE SECRETARY HE VACATED HIS MISSISSIPPI DELTA CONGRESSIONAL SEAT IN THE NATION'S SECOND POOREST DISTRICT A VOTING RIGHTS ACT GERRYMANDER MEANS THAT 58 OF ITS VOTERS ARE BLACK NORMALLY DEMOCRATIC NOMINEE BERNIE THOMPSON WOULD TURN REPUBLICAN HAYES DENT INTO POLITICAL ROAD KILL BUT A DIVISIVE DEMOCRATIC PRIMARY GIVES MR DENT AN OUTSIDE CHANCE FEW BLACKS OPPOSE THE CLINTON PROGRAM BUT NEITHER DO MANY SHOW MUCH ENTHUSIASM FOR IT APRIL 27 THREE RUNOFFS WILL BE HELD FOR STATE LEGISLATIVE SEATS IN CALIFORNIA WHICH SAW AN ELECTION DAY MASSACRE OF THE GOP LAST NOVEMBER DEMOCRATS WERE FAVORED TO WIN ALL THREE RACES OUTRIGHT IN FEBRUARY BUT THEIR CANDIDATES FAILED TO CLEAR 50 OF THE VOTE IF DEMOCRATS SHOULD LOSE A STATE SENATE RACE IN THE COUNTERCULTURAL REDWOOD COUNTRY NORTH OF SAN FRANCISCO THE DEFEAT WILL REGISTER ON POLITICAL RICHTER SCALES EVERYWHERE MAY 1 APPOINTED DEMOCRATIC SEN BOB KRUEGER OF TEXAS IS RUNNING AS THE REINVENTING GOVERNMENT CANDIDATE BILL CLINTON WAS LAST YEAR NOT THE ECONOMIC STIMULUS PROPONENT HE HAS BECOME MR KRUEGER TOUTS PERFORMANCEBASED GOVERNMENT AND SAYS THE CLINTON PROGRAM OF EMPHASIZING TAXES OVER SPENDING CUTS HAS THE CART BEFORE THE HORSE BACK IN WASHINGTON HE HAS RAISED POLITICAL CAUTION TO AN ART FORM HE WAS THE ONLY ONE OF 100 SENATORS NOT TO VOTE FOR ANY BUDGET RESOLUTION THOUGH HE WILL PROBABLY LEAD THE MAY 1 PRIMARY A RUNOFF WILL BE HELD MAY 4 WISCONSIN DEMOCRAT PETER BARCA WILL FACE REPUBLICAN BUSINESSMAN MARK NEUMANN IN THE RACE TO SUCCEED LES ASPIN IF DEMOCRATS LOSE THIS SEAT IN A DISTRICT THAT BOTH MICHAEL DUKAKIS AND BILL CLINTON CARRIED AND IF MR KRUEGER PLACES BADLY IN THE TEXAS SENATE RACE A FEW DAYS BEFORE WATCH FOR MR CLINTON'S SUPPORT IN CONGRESS TO BEGIN ERODING LATE MAY OR EARLY JUNE THE RUNOFF IN TEXAS WILL PROBABLY FEATURE MR KRUEGER AGAINST ONE OF THREE AGGRESSIVE REPUBLICAN CHALLENGERS JUNE 8 CALIFORNIA REP LEON PANETTA LEFT CONGRESS TO BECOME DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET THE BATTLE FOR HIS SANTA CRUZBASED SEAT SHOULD GO TO THE DEMOCRATS THE AREA IS ONLY 30 REPUBLICAN STILL IF DEMOCRATS FALTER IN OTHER SPECIAL ELECTIONS LOOK FOR THE GOP TO POUR ON THE GAS HERE THEIR BEST BET IS ATTORNEY BOB ERNST WHO IS WILLING TO SPEND SOME OF HIS PERSONAL FORTUNE MR CLINTON'S PROBLEM IS THAT IF DEMOCRATS WIN MOST OF THE THESE CONTESTS IT WON'T BE CONSIDERED REMARKABLE BUT IF DEMOCRATS DO BADLY THE ASSUMPTION THAT MR CLINTON WILL GET HIS ECONOMIC PROGRAM PASSED INTACT AS RONALD REAGAN DID IN 1981 GOES OUT THE WINDOW DEMOCRATS WILL START QUESTIONING THE PUBLIC'S TOLERANCE FOR TAX INCREASES AND SENATE REPUBLICANS WILL CLAIM A MANDATE HOWEVER DUBIOUS TO FURTHER FILIBUSTER MR CLINTON MICHAEL BARONE COAUTHOR OF THE ALMANAC OF AMERICAN POLITICS ISN'T SURPRISED THAT DEMOCRATS MAY NOT GET POLITICAL MILEAGE OUT OF THE CLINTON PROGRAM IN RESEARCHING HIS BOOK HE FOUND FEW INSTANCES WHEN TAXING UPPERINCOME GROUPS PAID OFF ELECTORALLY NEW DEAL DEMOCRATS NEVER COULD MAKE REAL POLITICAL HAY OUT OF ATTACKS ON ECONOMIC ROYALISTS CLASS WARFARE IS ULTIMATELY A POLITICAL LOSER KENNEDY LOWERED TAX RATES ON THE RICH AND THERE WAS BARELY A POLITICAL PEEP IF MR BARONE IS RIGHT THEN THE CLINTON POLITICAL STRATEGISTS WHO HELPED CRAFT THE ECONOMIC PROGRAM MAY HAVE MISJUDGED THE COUNTRY ESPECIALLY THE PEROT VOTERS WHO ARE NOW THE SWING FACTOR IN POLITICS MR PEROT WHOM NO ONE WILL ACCUSE OF NOT BEING PLUGGED INTO HIS BACKERS FINALLY INDICATED BY HIS ANGRY EXCHANGES WITH MR CLINTON LAST WEEK WHAT HIS POLITICAL VERDICT ON THE CLINTON PLAN IS THUMBS DOWN OF COURSE MR CLINTON IS THE ROBOPOL OF AMERICAN POLITICS AND HE MAY YET MOW DOWN ALL HIS OPPONENTS BUT HE IS NOW ENTERING A MUCH DENSER POLITICAL MINEFIELD THAN HE EXPECTED ONLY A FEW WEEKS AGO MR FUND IS A WRITER ON THE JOURNAL'S EDITORIAL PAGE 9304080079 930408 HOLIDAY NOTICE EXCHANGES GOVERNMENT OFFICES AND MOST BUSINESSES IN CANADA WILL BE CLOSED TOMORROW FOR GOOD FRIDAY GOVERNMENT OFFICES ALSO WILL BE CLOSED MONDAY BANKS WILL BE CLOSED FRIDAY EXCEPT IN QUEBEC WHERE THEY WILL BE CLOSED MONDAY THERE WON'T BE MAIL DELIVERY ON EITHER DAY 9304080078 930408 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 BANC ONE CORP 250 MILLION OF SUBORDINATED NOTES DUE APRIL 15 2003 PRICED AS 6 5/8 AT 99316 TO YIELD 672 A 65BASISPOINT SPREAD ABOVE THE TREASURY 10YEAR NOTE ACCORDING TO MCM CORPORATEWATCH RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CONSOLIDATED EDISON CO OF NEW YORK 150 MILLION OF DEBENTURES DUE APRIL 1 2003 PRICED AS 6 3/8 S AT 99157 TO YIELD 6491 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 044 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS CONTAINER CORP 500 MILLION OF 10YEAR SENIOR NOTES DUE APRIL 1 2003 PRICED AS 9 3/4 AT PAR ACCORDING TO MCM CORPORATEWATCH RATED SINGLEB2 BY MOODY'S AND SINGLEBPLUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO KOREA ELECTRIC POWER CORP 350 MILLION OF DEBENTURES DUE APRIL 1 2013 PRICED AS 7 3/4 AT 99353 TO YIELD 7814 A 084 PERCENTAGE POINT SPREAD ABOVE THE 30YEAR TREASURY BOND ACCORDING TO MCM CORPORATEWATCH RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC STUDENT LOAN MARKETING ASSOCIATION 600 MILLION OF FLOATINGRATE NOTES DUE APRIL 16 1996 PRICED AT PAR TO FLOAT 22 BASIS POINTS ABOVE THE TREASURY THREEMONTH BILL ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FORT WORTH TEXAS INDEPENDENT SCHOOL DISTRICT 529 MILLION SERIES 1993 UNLIMITEDTAX REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 26 IN 1994 TO 6 FOR ZEROCOUPON BONDS DUE IN 2009 THE BONDS ARE GUARANTEED BY TEXAS' PERMANENT SCHOOL FUND AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FULTON COUNTY GA 75 MILLION GENERAL FUND TAXANTICIPATION NOTES APPARENTLY WON BY MANAGING UNDERWRITER BT SECURITIES CORP WITH A BID SETTING THE TRUE INTEREST COST AT 2311 THE NOTES DUE DEC 31 1993 HAVE A 275 COUPON BUT AREN'T FORMALLY REOFFERED THEY HAVE BEEN RATED MIG1 BY MOODY'S SP1PLUS BY S&P AND F1PLUS BY FITCH INVESTORS SERVICE INC PALM BEACH COUNTY FLA HEALTH FACILITIES AUTHORITY 80 MILLION SERIES 1993 HOSPITAL REVENUE BONDS PRICED BY FIRST BOSTON CORP YIELDS RANGE FROM 4 IN 1995 TO 63 IN 2022 THE BONDS WHICH ARE FOR THE GOOD SAMARITAN HEALTH SYSTEMS INC PROJECT HAVE BEEN RATED SINGLEAMINUS BY S&P BHC FINANCIAL INC INITIAL 2123287 COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES CB BANCSHARES INC 500000 COMMON SHARES PRICED AT 3150 A SHARE THROUGH ITS SOLE UNDERWRITER MA SCHAPIRO & CO CINCINNATI MILACRON INC 45 MILLION COMMON SHARES PRICED AT 2050 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP GENERAL GROWTH PROPERTIES INC INITIAL OFFERING OF 165 MILLION COMMON SHARES OF GENERAL GROWTH PROPERTIES INC PRICED AT 22 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS INTERCAPITAL CALIFORNIA INSURED MUNICIPAL INCOME TRUST 500 OF EACH OF ITS SERIES 1 SERIES 2 SERIES 3 AND SERIES 4 AUCTION RATE PREFERRED SHARES OFFERED AT 50000 A SHARE BY DEAN WITTER DISTRIBUTORS INC AND MERRILL LYNCH & CO KIMCO REALTY CORP THREE MILLION COMMON SHARES PRICED AT 3425 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PENN TRAFFIC 2788155 COMMON SHARES PRICED AT 3925 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN BANK 100 MILLION OF FIXED AND FLOATING STEPUP COUPON NOTES WITH A FINAL MATURITY OF APRIL 15 1998 PRICED THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP THE NOTES WERE PRICED TO FLOAT AT A SPREAD OF 50 BASIS POINTS ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE THE ISSUE'S COUPON STEPS UP OR INCREASES TO A FIXEDRATE COUPON OF 57 AT PAR ON APRIL 15 1995 THE NOTES ARE NONCALLABLE FOR TWO YEARS FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES GOLD 1516 IS BACKED BY FREDDIE MAC 6 1/2 SEVENYEAR BALLOON MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 720 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 683 YEARS CHASE MANHATTAN BANK 750 MILLION OF AUTOMOBILE LOAN ASSETBACKED CERTIFICATES PRICED AS 42 AT 99 61/64 TO YIELD 4273 ACCORDING TO MCM CORPORATEWATCH THE YIELD ON THE CERTIFICATES WITH A 136YEAR EXPECTED AVERAGE LIFE IS A 094 PERCENTAGE POINT SPREAD ABOVE THE TREASURY WHENISSUED ONEYEAR BILL RATED TRIPLEA BY FITCH MOODY'S AND S&P THE CERTIFICATES WILL BE SOLD THROUGH UNDERWRITERS LED BY CHASE SECURITIES INC THE CERTIFICATES IN THE ISSUE CHASE MANHATTAN GRANTOR TRUST 1993A ARE SUPPORTED BY A 7 CASH COLLATERAL ACCOUNT MONTHLY INTEREST AND PRINCIPAL PAYMENTS BEGIN MAY 15 CHASE MANHATTAN BANK A UNIT OF CHASE MANHATTAN CORP IS THE SELLER AND SERVICER OF THE AUTO LOANS NORWEST BANK NA IS THE TRUSTEE AQUARIUS PLUS LTD SPECIALPURPOSE CAYMAN ISLANDS COMPANY 100 MILLION OF COLLARED FLOATING RATE EURONOTES DUE DECEMBER 2000 VIA CITIBANK INTERNATIONAL PLC INTEREST FLOATS AT 1/4 POINT BELOW LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO MINIMUM 5 AND MAXIMUM 7 1/2 INTEREST RATE REOFFERED AT PAR COLLATERALIZED ON 100 MILLION OF SERIES SM 200I NOTES ISSUED BY FEDERAL NATIONAL MORTGAGE ASSOCIATION AT ANY TIME DURING THE LIFE OF THE AQUARIUS NOTES CITIBANK WILL MAKE A PRICE ALLOWING INVESTORS TO SELL NOTES BACK TO ISSUING COMPANY AND LIQUIDATE THE NOTES BY SELLING FANNIE MAE BONDS FEES 3/8 BARCLAYS BANK PLC UK 200 MILLION OF 9 7/8 UNDATED SUBORDINATED EUROBONDS AT ISSUE AND REOFFER PRICE OF 100856 VIA BARCLAYS DE ZOETE WEDD YIELD TO CALL DATE IN MAY 2008 IS 9764 ANNUAL MARGIN 140 BASIS POINTS OVER THE 9 UK GILT DUE 2008 CALLABLE AT PAR ON MAY 12 2008 AND EACH SUBSEQUENT FIVE YEARS IF NOT CALLED BORROWER MUST RESET COUPON AT HIGHER OF 9 7/8 OR 240 BASIS POINTS ABOVE YIELD ON PREVAILING FIVEYEAR GILT FEES 3/4 LEEDS PERMANENT BUILDING SOCIETY UK 100 MILLION OF 7 3/8 EUROBONDS DUE MAY 6 1998 AT ISSUE PRICE 100666 VIA SAMUEL MONTAGU & CO REOFFER PRICE 99116 TO YIELD 7455 MARGIN OF 75 BASIS POINTS ABOVE COMPARABLE UK TREASURY FEES 1 7/8 TORAY INDUSTRIES INC JAPAN 10 BILLION YEN OF STRUCTURED EUROBONDS DUE JULY 29 1997 VIA SAKURA INTERNATIONAL LTD INTEREST AT 4 ANNUAL FOR FIRST THREE YEARS AND THREE MONTHS THEREAFTER FLOATS AT 1/8 POINT BELOW LONDON INTERBANK OFFERED RATE FOR YEN ISSUE AND REOFFER PRICE PAR FEES 1/4 9304080076 930408 TECHNOLOGY FIVE FORMER OFFICIALS OF DEFUNCT DRUG UNIT FACE FRAUD INDICTMENTS BALTIMORE FIVE FORMER EXECUTIVES OF DEFUNCT QUAD PHARMACEUTICALS INC WERE INDICTED ON FRAUD CHARGES BY A FEDERAL GRAND JURY THE US ATTORNEY'S OFFICE HERE SAID QUAD A GENERICDRUG MANUFACTURER THAT SPECIALIZED IN LIQUID INJECTABLE DRUGS WAS A UNIT OF PHARMACEUTICAL RESOURCES INC SPRING VALLEY NY THREE QUAD OFFICIALS PREVIOUSLY HAD ENTERED GUILTY PLEAS AND AGREED TO TESTIFY FOR THE GOVERNMENT DILIP P SHAH FORMER PRESIDENT OF QUAD WAS CHARGED WITH LYING TO AND CONCEALING DATA FROM THE FOOD AND DRUG ADMINISTRATION US ATTORNEY RICHARD D BENNETT SAID THREE OTHER FORMER OFFICIALS RAJA M FEROZ ARUN KUMAR AND ASAD ULLAH ADDITIONALLY WERE CHARGED WITH SHIPPING ADULTERATED DRUG PRODUCTS ANOTHER FORMER EMPLOYEE SURENDRA K BANSAL ALSO WAS CHARGED WITH LYING TO AND CONCEALING DATA FROM THE FDA MOST OF THE CRIMES CHARGED CARRY MAXIMUM TERMS OF FIVE YEARS' IMPRISONMENT AND FINES UP TO 250000 MR BENNETT SAID THE DEFENDANTS WILL BE ARRAIGNED IN BALTIMORE ON APRIL 16 THE CASE IS EXPECTED TO GO TO TRIAL IN THE FALL 9304080075 930408 BUSINESS BRIEF CARPENTER TECHNOLOGY CORP COMPANY TO FORM VENTURE WITH TAIWAN'S WALSIN LIHWA CARPENTER TECHNOLOGY CORP AND WALSIN LIHWA CORP TAIPEI SAID THEY WILL FORM A JOINT VENTURE TO MAKE AND DISTRIBUTE STAINLESS AND CARBON STEEL PRODUCTS THE VENTURE WHICH IS SUBJECT TO APPROVAL BY BOTH COMPANIES' BOARDS WILL MAKE PRODUCTS AT A 300 MILLION PLANT THAT WALSIN IS BUILDING IN TAINAN COUNTY IN SOUTHERN TAIWAN THE PLANT WHICH IS EXPECTED TO EMPLOY 400 PEOPLE WILL BE COMPLETED BY EARLY 1994 IT WILL BE ABLE TO PRODUCE 200000 METRIC TONS OF PRODUCT A YEAR THE COMPANIES SAID A METRIC TON IS EQUAL TO ABOUT 220462 POUNDS UNDER TERMS OF THE AGREEMENT CARPENTER OF READING PA WILL PAY 475 MILLION FOR A 19 STAKE IN THE JOINT VENTURE CALLED WALSINCARTECH AND WILL BE ABLE TO INCREASE ITS STAKE TO 35 BY JULY 1 1996 CARPENTER WITH SALES OF 5702 MILLION LAST YEAR MAKES AND MARKETS SPECIALTY METALS INCLUDING BAR ROD WIRE STRIP AND BALLET WALSIN LIHWA A PUBLICLY HELD COMPANY THAT MAKES WIRE AND CABLE PRODUCTS HAD SALES OF 4117 MILLION LAST YEAR 9304080074 930408 TECHNOLOGY BRIEF MONSANTO CO ARTHRITIS DRUG IS INTRODUCED IN CANADA SWEDEN BRITAIN GD SEARLE & CO A UNIT OF MONSANTO CO ST LOUIS INTRODUCED IN CANADA SWEDEN AND BRITAIN AN ARTHRITIS DRUG THAT INCLUDES A CHEMICAL AGENT TO PROTECT AGAINST ULCERS A COMMON SIDE EFFECT OF ARTHRITIC MEDICATIONS THE DRUG KNOWN AS ARTHROTEC COMBINES DICLOFENAC A FREQUENTLY PRESCRIBED ANTIINFLAMMATORY DRUG AND MISOPROSTOL AN ANTIULCER AGENT SEARLE CANADA INC THE CANADIAN UNIT OF GD SEARLE SAID CLINICAL TRIALS HAVE DEMONSTRATED ARTHROTEC RELIEVES PAIN AND INFLAMMATION AND CAUSES AT LEAST 60 FEWER ULCERS THAN OTHER ARTHRITIS MEDICATIONS GD SEARLE INTENDS TO INTRODUCE ARTHROTEC IN OTHER EUROPEAN COUNTRIES IN COMING MONTHS A COMPANY SPOKESWOMAN SAID THE DRUG TAKEN IN TABLET FORM WON'T BE AVAILABLE IN THE US FOR SOME TIME THE US PATENT ON DICLOFENAC HAS EXPIRED BUT SWISS PHARMACEUTICAL MAKER CIBAGEIGY LTD HAS EXCLUSIVE RIGHTS TO MARKET DICLOFENAC IN THE US UNTIL THE END OF 1993 9304080073 930408 BUSINESS BRIEF ROCHESTER TELEPHONE CORP FIRM SIGNS ACCORD TO MARKET VIDEOS AND DATA ON DEMAND ROCHESTER TELEPHONE CORP SAID IT SIGNED AN AGREEMENT TO TEST MARKET VIDEOS AND INFORMATION ON DEMAND USING FIBEROPTIC LINES AND TECHNOLOGY FROM USA VIDEO CORP THE TWO COMPANIES WILL INSTALL AND OPERATE THE TECHNOLOGY IN 100 HOMES IN ROCHESTER NY LATER THIS YEAR PARTICIPANTS WILL BE ABLE TO SELECT FROM A LIBRARY OF MORE THAN 100 PROGRAMS INCLUDING MOVIES VIDEOS NEWS HOME SHOPPING AND EDUCATIONAL AND HOWTO PROGRAMS ROCHESTER TELEPHONE PLANS TO INVEST 1 MILLION IN USA VIDEO CENTURY CITY CALIF IT WILL BE USA VIDEO'S SOLE MARKETING AGENT FOR ALL LOCAL TELEPHONE EXCHANGE COMPANIES IN THE US AND IN ONTARIO EXCEPT FOR REGIONAL BELL OPERATING COMPANIES WITH THE AGREEMENT ROCHESTER TELEPHONE JOINS A GROWING LIST OF TELEPHONE COMPANIES THAT ARE LAUNCHING OR PLANNING TO LAUNCH VIDEOONDEMAND SERVICES BY THEMSELVES OR WITH CABLE PARTNERS 9304080072 930408 LOS ANGELES 'HOOD A BLEND OF RACES STRIVES TO GET ALONG ETHNICALLY VARIED WEST ADAMS WAITS FOR THE KING VERDICT AMID A DELICATE HARMONY BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IT'S A BALMY SATURDAY MORNING AND KAMAL HASSAN CUTS A 6FOOT3INCH FIGURE PRACTICING BANK SHOTS ON THE BASKETBALL COURT AT LOREN MILLER PARK AS A RENTER LIVING A FEW BLOCKS FROM HERE THE 36YEAROLD BLACK JUNIOR HIGHSCHOOL TEACHER HAS WATCHED THIS NEIGHBORHOOD UNDERGO A TRANSITION OVER THE LAST EIGHT YEARS MANY LONGTIME BLACK RESIDENTS HAVE SOLD THEIR HOMES TO LATINOS ASIANS AND YOUNG WHITES MAKING THIS COMMUNITY WEST ADAMS MORE RACIALLY AND CULTURALLY ECLECTIC THAN MOST IN THE CITY THOUGH NO FAN OF GENTRIFICATION MR HASSAN GRUDGINGLY ACKNOWLEDGES THAT THE MIXEDRACE NEIGHBORHOOD WORKS AS LONG AS YOU'RE ONLY TALKING ABOUT HALLOWEEN AND TEA AND COOKIES SURE PEOPLE CAN GET ALONG HE SAYS OTHERS HERE ARE MORE ENTHUSIASTIC IN 22 YEARS LIVING IN SOUTHERN CALIFORNIA SAYS ROBERT LUNA A MEXICANAMERICAN I'VE NEVER SEEN A PLACE WHERE THE RACES GET ALONG SO WELL THE EXISTENCE OF DIVERSE NEIGHBORHOODS SUCH AS THIS IS LARGELY OVERLOOKED DURING THIS TIME OF WORRY OVER A POSSIBLE REPEAT OF LAST YEAR'S RIOTING IN LOS ANGELES WHICH FOLLOWED THE ACQUITTAL ON NEARLY ALL CHARGES OF THE FOUR WHITE POLICEMEN WHO BEAT BLACK MOTORIST RODNEY KING WITH THE FEDERAL CIVILRIGHTS TRIAL AGAINST THE SAME OFFICERS EXPECTED TO GO TO THE JURY TOMORROW THE MEDIA ARE PORTRAYING THIS CITY AS A RACIALLY TENSE METROPOLIS WITH TIGHT BORDERS SEPARATING WARRING GROUPS BUT HERE IN WEST ADAMS AND SOME AREAS LIKE IT THE REALITY IS A SUCCESSFUL IF OFTEN MERCURIAL AND ALWAYS DELICATE EXPERIMENT IN MULTICULTURALISM JOHN AND HILARIE GREEN HE A 38YEAROLD TELEVISION WRITER AND SHE 33 A FINANCIAL ADVISER WERE NERVOUS THREEANDAHALF YEARS AGO ABOUT MOVING INTO THE 2700 BLOCK OF LA SALLE AVE THE GREENS WHO ARE WHITE WENT DOORTODOOR SEEKING NEIGHBORS' REACTIONS TO THEIR DECISION TO BUY A 2500SQUAREFOOT VICTORIAN WE DIDN'T EXACTLY ASK PERMISSION MR GREEN CLARIFIES BUT THE COUPLE WAS REALLY AWARE OF SOME OF THE RESENTMENT TOWARD YUPPIES THE GREENS ARE NOW ECSTATIC ABOUT THEIR MOVE FROM NEARLY ALLWHITE UPSCALE BRENTWOOD IN 1989 WHAT WE DISCOVERED VERY QUICKLY WAS THAT WE HAVE VERY MIDDLECLASS NEIGHBORS HERE SAYS MRS GREEN THE DAY THEY MOVED IN SOME NEIGHBORS BROUGHT OVER OATMEAL RAISIN COOKIES THE BAKER OF THOSE COOKIES WAS ADDIE CLARK WHO LIVES IN AN IVORYHUED VICTORIAN WITH HER HUSBAND ARLINDA ON LA SALLE'S 2700 BLOCK THE CLARKS WHO ARE AFRICANAMERICAN LOVE THE NEIGHBORHOOD BUT ON APRIL FOOLS DAY 1990 THEY RECEIVED A REMINDER THAT ITS INHABITANTS ARE VULNERABLE TWO DOORS AWAY FROM THEIR HOUSE A MAN PULLED A GUN ON MR CLARK I THOUGHT IT WAS A JOKE HE SAYS DEADLY SERIOUS THE ROBBER MADE OFF WITH 50 AND MR CLARK'S WALLET SIMILARLY IN THE SAME BREATH THAT MR LUNA PRAISES THE NEIGHBORHOOD AS RACIALLY HARMONIOUS HE LAMENTS HOW HIS ELDEST SON AN ASPIRING DOCTOR HAS TO RESIST THE STRONGARM RECRUITMENT TACTICS OF ADDICTED TO CRIME A LATINO STREET GANG WITH TENTACLES IN WEST ADAMS AND HE TICKS OFF A SERIES OF RECENT CRIMES AGAINST HIS FAMILY THE ARMED ROBBERY OF THE ELDEST SON THE THEFT OF HIS YOUNGEST SON'S BICYCLE AN ATTEMPT TO SNATCH HIS WIFE'S PURSE ALL HAPPENED IN THE VICINITY OF NEARBY LA SALLE AVE AND ADAMS BLVD HOME OF JAX LIQUORS PROSTITUTES AND DRUG PEDDLERS WEST ADAMS IS A PATCHWORK QUILT WHERE ONE BLOCK CAN BE A LITTLE BIT OF HEAVEN AND THE NEXT BLOCK A SHEER SLICE OF HELL SAYS ROBIN ROBERTS A WHITE HOMEOWNER IN THE RELATIVE OASIS OF LA SALLE'S 2700 BLOCK MR HASSAN THE TEACHER SHOOTING BASKETS AT LOREN MILLER PARK SAYS WHAT THIS NEIGHBORHOOD REALLY NEEDS IS TO DO SOMETHING FOR THOSE WHO HAVE THE LEAST AND IF PEOPLE HERE THINK THEY'RE GOING TO GET A SAFE NEIGHBORHOOD WITHOUT ADDRESSING THOSE ISSUES THEY'RE CRAZY HOMEOWNERACTIVISTS IN THIS AREA AND ALMOST ALL HOMEOWNERS ARE ACTIVE RELY HEAVILY ON THE POLICE ONE DAY LAST MONTH COINCIDENTLY ON THE TWOYEAR ANNIVERSARY OF RODNEY KING'S BEATING 170 RESIDENTS FROM WEST ADAMS AND NEARBY NEIGHBORHOODS SIT IN THE STOREFRONT WESTMINSTER COMMUNITY CHURCH A POLICEDEPARTMENT SPEAKER REPEATEDLY PROCLAIMS WE ARE MOVING IN THE RIGHT DIRECTION THE GREENS WHO HAVE HELPED ORGANIZE THE POLICECOMMUNITY POWWOW JOIN IN ROARING APPLAUSE ALL BUT A FEW OF THE 20 FAMILIES ON LA SALLE'S 2700 BLOCK PARTICIPATE IN THE NEIGHBORHOOD BLOCK CLUB AND MRS CLARK HAS BEEN TRYING TO GET NEIGHBORS OF THE CRACK HOUSE ON THE NEXT BLOCK TO JOIN SHE SUCCEEDED IN GETTING ONE SMOKER WHO FREQUENTS THE HOUSE TO ATTEND A FEW MEETINGS BUT HE TURNED OUT TO BE A SPY AND JUST WANTED INFORMATION ABOUT WHAT WE WERE ABOUT TO DO SHE SAYS THE PATH TO INTEGRATION HERE HASN'T BEEN SMOOTH THE WEST ADAMS HERITAGE ASSOCIATION OR WAHA HAS ANGERED SOME RESIDENTS ITS MOSTLY WHITE MEMBERS HAVE SOUGHT TO GUARD THE OLDTIME LOOK OF THE NEIGHBORHOOD AT THE EXPENSE OF BENEFICIAL CHANGE CRITICS SAY WHEN WAHA OPPOSED ATTEMPTS BY NEARBY HOLMAN UNITED METHODIST TO TEAR DOWN AN OLDER BUILDING TO CONSTRUCT A COMMUNITY CENTER HOLMAN CHURCH MEMBERS WERE OUTRAGED THAT WHITES WHO ONCE ABANDONED THE AREA WERE NOW TRYING TO CONTROL IT A CENTURY AGO BEFORE BEVERLY HILLS BECAME POPULAR WITH THE UPPER CRUST WEALTHY ANGELENOS BUILT ELEGANT HOMES HERE BUT CONSTRUCTION OF THE SANTA MONICA FREEWAY BISECTED THE COMMUNITY IN THE EARLY 1960S CUTTING ITS HEART OUT IN THE VIEW OF SOME OLDTIMERS URBAN DECAY QUICKLY FOLLOWED PERSISTING UNTIL THE 1980S WHEN SKYROCKETING HOME PRICES IN OTHER AREAS LED THE MIDDLE CLASS TO RECONSIDER THE AREA NOW IN THE ZIP CODE CONTAINING LA SALLE AVE 58 ARE BLACK 27 HISPANIC 10 WHITE AND 5 ASIAN LAST APRIL WEST ADAMS FOUND ITSELF AT THE DOORSTEP OF THE WORST AMERICAN RIOTING IN THIS CENTURY WITHIN HOURS OF THE ACQUITTAL OF THE OFFICERS WHO HAD BEATEN RODNEY KING ONE STORE AT LA SALLE AND ADAMS WAS LOOTED BEFORE ITS OWNERS' EYES AND THE ONLY VIDEO STORE WITHIN WALKING DISTANCE OF LA SALLE'S 2700 BLOCK WAS BURNED DOWN BUT ON THAT BLOCK PEOPLE PULLED TOGETHER DISCUSSING THE RIOTING AS WELL AS ITS CAUSES THEY EVEN ORGANIZED A MULTIRACIAL SEARCH PARTY FOR ONE OF THEIR OWN WHO WAS FEARED LOST DURING THE VIOLENCE AS THE VERDICT IN THE KING FEDERAL CASE APPROACHES RESIDENTS ARE AGAIN SUPPORTING AND TALKING WITH ONE ANOTHER WEST ADAMS IS A PLACE WHERE EVERYONE CAN POINT OUT CRACK HOUSES BUT IT'S ALSO A PLACE DESCRIBED AS CLOSEKNIT WITH A SMALLTOWN FEEL THE NEIGHBORHOOD HOMELESS MAN CLIFF AN AFRICANAMERICAN WHO GOES BY CARWASH HIS OCCASIONAL LINE OF WORK KNOWS INCOMING RESIDENTS' NAMES BEFORE THEIR BOXES ARE UNPACKED MANY SAVE RECYCLABLE CANS FOR HIM PEOPLE ON THE 2700 BLOCK KNEW THE ROBERTSES A WHITE COUPLE WERE SELLING THEIR HOUSE EVEN BEFORE THE SIGN WENT UP ON AN EVENING WALK PAST NEATLY COMBED LAWNS AND BUSHES OF COLORFUL FLOWERS ART ROBERTS EXCHANGES GREETINGS WITH MR GREEN OUT WALKING HIS JETBLACK LABRADOR RETRIEVER AND RECALLS WISTFULLY FEBRUARY'S DECISION TO SELL PAY CUTS IN THE SCHOOL SYSTEM FORCED MR AND MRS ROBERTS AN ASSISTANT PRINCIPAL AND KINDERGARTEN TEACHER RESPECTIVELY TO FIND MORE ECONOMICAL LIVING ARRANGEMENTS BUT THE ROBERTSES AREN'T RUNNING SCARED ANYBODY WHO WAS INCLINED TO BE SCARED OFF WOULDN'T HAVE MOVED HERE IN THE FIRST PLACE SAYS MRS ROBERTS 9304080071 930408 COMMODITIES COPPER FUTURES HIT LOWEST LEVELS SINCE 1988 AMID SPECULATIVE SELLING AND DECLINE IN DEMAND BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COPPER FUTURES PRICES CONTINUED TO PLUNGE SINKING TO LEVELS NOT SEEN SINCE 1988 ON SPECULATIVE SELLING AND ANEMIC CONSUMPTION OF COPPER WORLDWIDE AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MAY DELIVERY FELL 42 CENTS TO SETTLE AT 883 CENTS A POUND THE LOWEST LEVEL SINCE AUGUST 1988 AT ONE POINT DURING THE TRADING DAY THE MAY CONTRACT REACHED 8695 CENTS A POUND MATCHING 1987 LOWS WE'VE SEEN A BIT OF PANIC SELLING SAID FRED DEMLER METALS ECONOMIST FOR PAINEWEBBER IN NEW YORK THERE'S BEEN A SLOWDOWN IN WORLDWIDE CONSUMPTION OF COPPER EUROPEAN CONSUMPTION IS PARTICULARLY WEAK YESTERDAY'S PRICE ROUT STARTED WITH OPTIONSRELATED SELLING ON THE LONDON METALS EXCHANGE WHERE OPTIONS DEALERS WERE SCRAMBLING TO COVER POSITIONS THEY HAD PREVIOUSLY SOLD TO COPPER PRODUCERS IN ADDITION MANY PRODUCERS IN COPPERMINING COUNTRIES WERE SELLING ON BOTH THE LONDON AND THE NEW YORK EXCHANGES YESTERDAY SEEKING TO HEDGE INVENTORIES FOR 1993 AND 1994 THE WORLD'S LEADING COPPER PRODUCERS WHO MINE IN CHILE PERU ZAIRE ZAMBIA AUSTRALIA AND OTHER COUNTRIES RELY ON DEMAND FROM INDUSTRIALIZED NATIONS IN EUROPE AND ASIA TO BUY MUCH OF THEIR PRODUCT SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IN ADDITION TO THE LACK OF BUYING BY EUROPEAN NATIONS JAPAN AND CHINA HAVE ALSO STEPPED BACK FROM THE MARKET MR O'NEILL SAID CHINA DID SOME SELLING IN COPPER MARKETS YESTERDAY PARTICULARLY IN LONDON PRICES WERE ALSO DRIVEN LOWER BY SPECULATIVE SELLERS INCLUDING COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY THESE FUNDS TEND TO TRADE ON THE BASIS OF MATHEMATICAL FORMULAS SELLING FUTURES CONTRACTS WHEN PRICES FALL TO WHAT ARE SEEN AS KEY LEVELS MOREOVER WAREHOUSE INVENTORIES OF COPPER APPROVED FOR DELIVERY ON LONDON AND NEW YORK FUTURES CONTRACTS HAVE BEEN RISING RECENTLY A SURPLUS IN THE QUANTITY OF DELIVERABLE STOCKS OF COPPER TENDS TO PUSH THE PRICES OF COPPER FUTURES CONTRACTS DOWN DESPITE THE BEARISH CLIMATE THAT HAS PREVAILED LATELY IN COPPERTRADING PITS SOME ANALYSTS THINK THE BOTTOM OF THE SKID MAY BE NEAR US CONSUMPTION OF COPPER HAS HELD UP RELATIVELY WELL FOR INSTANCE DURING THE DECLINE OF DEMAND ABROAD WE'RE OF THE OPINION THAT WE'RE NOW VERY CLOSE TO THE LOWS MR DEMLER SAID WHILE IN THE VERY SHORT TERM WE MAY SEE LOWER PRICES I DON'T THINK WE'LL SEE MANY MORE SELLOFFS LIKE TODAY IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDEOIL FUTURES PRICES RECOUPED SOME OF THEIR LOSSES FROM TUESDAY'S SELLOFF ON THE NEW YORK MERCANTILE EXCHANGE TRADERS CALLED YESTERDAY'S GAINS A TECHNICAL REBOUND AND SAID THAT TRADING CONTINUED TO BE QUIET BECAUSE OF THE PASSOVER AND EASTER HOLIDAYS AND NEXT WEEK'S MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IN OMAN CRUDE FOR MAY DELIVERY ROSE SEVEN CENTS TO CLOSE AT 2037 A BARREL PETROLEUM PRODUCTS MOVED HIGHER AS WELL FOLLOWING CRUDE MAY HEATING OIL SETTLED AT 5655 CENTS A GALLON UP 060 CENT AND MAY GASOLINE GAINED 047 CENT TO CLOSE AT 6031 CENTS A GALLON MARKET WATCHERS SAID TRADERS ARE HESITANT TO STAKE OUT ANY AGGRESSIVE POSITIONS WITH THE MERC CLOSED FRIDAY FOR GOOD FRIDAY AND THE INTERNATIONAL PETROLEUM EXCHANGE IN LONDON CLOSED BOTH FRIDAY AND MONDAY FOR EASTER WEEKEND THAT MEANS THAT EVEN YESTERDAY'S STATISTICS FROM THE AMERICAN PETROLEUM INSTITUTE DELAYED MORE THAN A DAY BECAUSE OF A NEW FORMAT WILL LIKELY BE SHRUGGED OFF BY TRADERS JUST AHEAD OF THE LONG HOLIDAY WEEKEND LIVESTOCK AND MEAT PORKBELLY FUTURES PRICES FELL ON PERCEPTIONS THAT AN OVERSUPPLY OF FRESH PORK BELLIES IS DEVELOPING PORK BELLIES FOR MAY DELIVERY SETTLED AT 4952 CENTS A POUND DOWN 055 CENT THE DECLINE WAS SURPRISING TO SOME IN THE MEAT INDUSTRY BECAUSE A COLD STORAGE REPORT RELEASED AFTER TRADING TUESDAY HAD SHOWED A SMALLERTHANEXPECTED NET INWARD MOVEMENT OF FRESH PORK BELLIES INTO COLD STORAGE SUCH A REPORT USUALLY PUSHES FUTURES PRICES HIGHER AT THE CHICAGO MERCANTILE EXCHANGE HOWEVER HOG SLAUGHTER WHICH HAS BEEN LOWER THAN EXPECTED THROUGHOUT MUCH OF 1993 PICKED UP IN THE PAST FEW DAYS SAID CHARLES LEVITT LIVESTOCK ANALYST FOR SHEARSON LEHMAN BROTHERS THE LACK OF DIVERSION OF FRESH BELLIES INTO COLD STORAGE IS BEGINNING TO CREATE A MILD SURPLUS OF BELLIES ON THE FRESH MARKET AND TRADERS ARE STARTING TO CATCH WIND OF IT MR LEVITT SAID GRAINS AND SOYBEANS GRAIN FUTURES PRICES ROSE ON OPTIMISM THAT A PROHIBITIVELY LOW CAP ON THE AMOUNT OF MONEY THAT CAN BE SPENT TO SHIP GRAIN TO RUSSIA MAY BE LIFTED A NEWS REPORT THAT US AGRICULTURE SECRETARY MICHAEL ESPY PLANNED TO DISCUSS WITH WHITE HOUSE OFFICIALS LIFTING THE 30 MILLION FREIGHT CAP SPARKED A LATE RALLY IN THE GRAIN PITS AT THE CHICAGO BOARD OF TRADE SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO ANALYSTS ESTIMATE THAT OF THE 700 MILLION ALLOCATED AS PART OF PRESIDENT CLINTON'S FOODFORPROGRESS GRANT TO RUSSIA 200 MILLION MUST BE SPENT ON FREIGHT ALSO PUSHING GRAIN PRICES HIGHER WERE WEATHER REPORTS CALLING FOR COOL WET WEATHER THROUGHOUT THE MIDWEST RAINY WEATHER COULD DELAY PLANTING OF OATS AND POSSIBLY CORN ANALYSTS SAID THE PRICE OF THE SOYBEAN CONTRACT FOR JULY DELIVERY ROSE SEVEN CENTS TO 60275 A BUSHEL WHILE THE JULY CORN CONTRACT CLIMBED 225 CENTS TO 23725 A BUSHEL 9304080070 930408 HEARD ON THE STREET RJR NABISCO'S USE OF ACCOUNTING TECHNIQUE DEALING WITH GOODWILL IS GETTING A HARD LOOK BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL WITH THE TOBACCOSTOCK SLUMP ALREADY HAUNTING RJR NABISCO HOLDINGS' PLAN TO SELL 15 BILLION OF NEW SHARES TIED TO ITS NABISCO FOOD BUSINESS SOME PEOPLE ON WALL STREET ARE TAKING A HARDER LOOK AT AN UNUSUAL ACCOUNTING FEATURE OF THE DEAL THE OFFERING'S SUCCESS DEPENDS GREATLY ON THE LITTLENOTICED ACCOUNTING TECHNIQUE WHICH MAKES NABISCO'S EARNINGS APPEAR BIGGER 93 LARGER TO BE EXACT WHAT RJR IS DOING IS PRESENTING NABISCO'S ANNUAL EARNINGS WITHOUT THE BURDEN OF 206 MILLION OF 1992 GOODWILL LEAVING THIS EARNINGSDEPRESSING ITEM WITH THE PARENT COMPANY INSTEAD GOODWILL IS A NONCASH ACCOUNTING ENTRY PILED UP ON THE BOOKS OF COMPANIES SUCH AS RJR WHENEVER THEY MAKE ACQUISITIONS AT PRICES ABOVE THE BOOK VALUE OF THE COMPANIES ACQUIRED AND THERE'S GOODWILL APLENTY AT RJR NABISCO A GROUP LED BY KOHLBERG KRAVIS ROBERTS PAID A PREMIUM OF 217 BILLION OVER BOOK VALUE WHEN IT SPENT 25 BILLION IN 1989 TO ACQUIRE THE FOOD AND TOBACCO COLOSSUS IN HISTORY'S LARGEST TAKEOVER UNDER ACCOUNTING RULES THE PREMIUM OVER BOOK VALUE OR GOODWILL MUST BE AMORTIZED THUS REDUCING RJR'S EARNINGS ANNUALLY OVER DECADES SO RJR NABISCO HOLDINGS WHICH RETURNED TO PUBLIC OWNERSHIP IN 1990 HAS BEEN CUTTING ITS PRETAX EARNINGS BY 607 MILLION ANNUALLY TO AMORTIZE ITS GOODWILL ABOUT ONETHIRD OF THAT IS NABISCO'S SHARE BECAUSE GOODWILL CHARGES ARE NONCASH MANY INVESTORS DISREGARD THEM IN VALUING STOCKS USING A MULTIPLE OF CASH FLOW INSTEAD BUT MANY INVESTORS USE REPORTED EARNINGS PENALIZING COMPANIES WITH HEAPS OF GOODWILL RJR IS EAGER TO FOCUS ATTENTION ON THE VALUE OF ITS FOOD BUSINESS WITH THE OFFERING WHY BECAUSE FOOD STOCKS TRADE AT ABOUT 16 TIMES THIS YEAR'S EXPECTED EARNINGS WHILE TOBACCO STOCKS TRADE AT A MULTIPLE OF ONLY EIGHT BECAUSE THE STOCK MARKET WILL PAY TWICE AS MUCH FOR FOOD EARNINGS AS FOR TOBACCO IT MAKES SENSE FOR RJR TO PUT AS MUCH OF ITS PROFITS AS POSSIBLE IN THE FOOD COMPANY WHOSE STOCK PRICE WILL BENEFIT MORE THE RATIONALE OF RJR AND ITS INVESTMENT BANKERS AT MORGAN STANLEY & CO AND FIRST BOSTON CORP IS THAT BOTH GENERAL MOTORS CORP AND USX CORP WHICH CREATED SIMILAR STOCKS TIED TO SPECIFIC SUBSIDIARIES DID THINGS THE SAME WAY ASSIGNING ALL THE GOODWILL TO THE PARENT BUT THE FIELD OF SPECIAL STOCK IS SO NEW THAT THE RULES AREN'T WELL ESTABLISHED RJR WANTS TO SELL 25 OF NABISCO TO THE PUBLIC RJR WHICH DECLINED TO COMMENT IS USING NOTIONAL ACCOUNTING AIMED MERELY AT GIVING INVESTORS AN IDEA OF HOW THE FOOD BUSINESS HAS PERFORMED YEARTOYEAR IT'S NOT REAL BUT THEORETICAL EXPLAINS PETER CANELLOS A TAX LAWYER AT WACHTELL LIPTON ROSEN & KATZ MR CANELLOS SAYS IT'S NOT CLEAR WHETHER THE GOODWILL SHOULD OR SHOULDN'T BE PUSHED DOWN TO THE FOOD SUBSIDIARY TO GIVE A TRUER PICTURE HE ISN'T INVOLVED IN THE DEAL THE IMPACT ON NABISCO'S REPORTED EARNINGS IS HUGE ACCORDING TO THE PRELIMINARY PROSPECTUS FOR THE PLANNED FOODSTOCK OFFERING KEEPING ALL THE GOODWILL WITH THE PARENT INCREASES NABISCO'S 1992 AFTERTAX PROFIT TO 345 MILLION FROM 179 MILLION AND TO 93 CENTS FROM 48 CENTS A SHARE AT A MEETING WITH ANALYSTS IN LATE MARCH NABISCO EXECUTIVES INDICATED THE FOOD COMPANY COULD GENERATE 1993 EARNINGS OF AS MUCH AS 130 A SHARE THAT EARNINGS LEVEL MIGHT JUSTIFY THE PROPOSED SELLING PRICE OF 17 TO 19 A SHARE FOR THE NEW NABISCO SHARES ANALYSTS SAY BUT SUBTRACTING 45 CENTS FOR GOODWILL MAKES IT MORE OF A STRETCH RJR ALSO FAVORED THE FOOD BUSINESS WHICH ACCOUNTED FOR 42 OF THE PARENT COMPANY'S 1992 SALES BY ASSIGNING IT ONLY 25 BILLION IN DEBT 18 OF THE PARENT COMPANY'S TOTAL THIS WEEK THE SECURITIES AND EXCHANGE COMMISSION ASKED RJR TO INCLUDE AN EXPLANATION OF THE RATIONALE FOR THE GOODWILL ACCOUNTING IN THE OFFERING STATEMENT RJR IS ALREADY CONSIDERING STRUCTURAL CHANGES IN THE OFFERING NEXT WEEK AS A RESULT OF THE POSTMARLBORO TURMOIL IN TOBACCO INDUSTRY FINANCES PHILIP MORRIS IS CUTTING PRICES ON MARLBOROS AND ITS STOCK HAS PLUNGED RECENTLY BUT WITH RJR'S OWN STOCK PRICE DOWN 33 SINCE THE PLANNED OFFERING WAS UNVEILED IN EARLY MARCH RJR IS UNDER PRESSURE TO MAKE THE NABISCO OFFERING WORK AT 6 THE RJR INVESTMENT IS BARELY ABOVE A BREAKEVEN POINT OF 570 A SHARE FOR KKR'S INVESTORS BEFORE SUBTRACTING KKR'S ANNUAL MANAGEMENT FEES 9304080069 930408 BUSINESS BRIEF INTEGRATED RESOURCES INC STEINHARDT MANAGEMENT BID FOR SOME ASSETS IS RAISED STEINHARDT MANAGEMENT CO HAS INCREASED ITS BID FOR THE REAL ESTATE ASSETS OF NEW YORKBASED INTEGRATED RESOURCES INC WHICH IS UNDER BANKRUPTCY COURT PROTECTION AN INITIAL OFFER BY STEINHARDT A PRIVATE INVESTMENT GROUP HAD BEEN REJECTED BY THE REAL ESTATE CONCERN'S MANAGEMENT AND SENIOR CREDITORS UNDER THE NEW PROPOSAL SENIOR CREDITORS WHO HOLD CHIEFLY BANK DEBT WILL GET 51 CENTS ON THE DOLLAR GENERAL UNSECURED CREDITORS WHO ARE MAINLY TRADE CREDITORS WILL GET 33 CENTS ON THE DOLLAR AND SUBORDINATED DEBTORS WHO HOLD HIGHYIELD HIGHRISK BONDS WILL GET THREE CENTS ON THE DOLLAR IN ADDITION A LIMITED NUMBER OF CREDITORS FROM ALL THREE GROUPS WILL BE ELIGIBLE TO BUY UP TO 40 OF THE EQUITY IN THE ENTITY FORMED BY STEINHARDT TO ACQUIRE INTEGRATED'S ASSETS FRANK GELLER CHIEF EXECUTIVE OF INTEGRATED SAID THE NEW PLAN IS A VERY SIGNIFICANT IMPROVEMENT WORTH ABOUT 50 MILLION MORE THAN STEINHARDT'S PREVIOUS OFFER MR GELLER WHO HAD BEEN CRITICAL OF THAT PRIOR OFFER SAID THE PLAN IS COMPARABLE TO ANOTHER OFFER MADE BY INTERESTS OF CHICAGO'S PRITZKER FAMILY 9304080068 930408 BUSINESS BRIEF CONAGRA SAYS FISCAL 4THPERIOD PROFIT WILL BE FLAT SENDING STOCK TUMBLING OMAHA NEB CONAGRA INC BLAMING SEVERE PRESSURES ON ITS REDMEAT BUSINESSES SAID EARNINGS IN ITS FISCAL FOURTHQUARTER COULD BE EVEN WITH LAST YEAR'S 43 CENTS A SHARE WALL STREET WHICH HAD EXPECTED PERHAPS 10 CENTS A SHARE MORE FOR THE PERIOD ENDING MAY 30 WHACKED THE BIG FOOD COMPANY'S STOCK IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CONAGRA WAS QUOTED AT 23 DOWN 275 OR 107 ON HEAVY VOLUME FOR THE YEAR THE COMPANY FORECAST PERSHARE EARNINGS OF ABOUT 162 ALTHOUGH SOME SECURITIES ANALYSTS WERE SKEPTICAL OF THAT PROJECTION NOMI GHEZ OF GOLDMAN SACHS & CO CUT HER ESTIMATE FOR THE YEAR TO 157 FROM 170 AND REDUCED THE FORECAST FOR FISCAL 1994 TO 175 FROM 195 BEFORE YESTERDAY'S ANNOUNCEMENT THE MEAN ESTIMATE OF ANALYSTS FOR THE CURRENT QUARTER WAS 52 CENTS A SHARE THE MEAN FOR THE FULL YEAR HAD BEEN 171 A SHARE CONAGRA THE NATION'S SECONDLARGEST MEAT PROCESSOR BEHIND IBP INC SAID RECENT RECORD CATTLE PRICES AND RISING HOG PRICES WERE SERIOUSLY DENTING EARNINGS REDMEAT BUSINESSES ACCOUNTED FOR PERHAPS ONETHIRD OF THE 212 BILLION IN FISCAL 1992 SALES MANY OF OUR BUSINESSES INCLUDING OUR MAJOR BRANDED FOOD BUSINESSES WILL ACHIEVE GOOD EARNINGS GROWTH IN THE FOURTH QUARTER HOWEVER THEY ARE NOT EXPECTED TO OVERCOME THE DROP IN EARNINGS IN OUR MEAT BUSINESSES SAID THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER PHILIP B FLETCHER WHILE MEAT'S CURRENT PRICE SQUEEZE WAS WELLKNOWN CONAGRA HAD FLAGGED IT IN ITS FISCAL THIRDQUARTER REPORT ANALYSTS WEREN'T PREPARED FOR THE MARKDOWN IN CONAGRA'S EARNINGS EXPECTATIONS THE MAGNITUDE SURPRISED ME SAID BONNIE WITTENBURG OF DAIN BOSWORTH INC IN MINNEAPOLIS EVERYTHING THAT COULD GO WRONG IN MEAT IS GOING WRONG NOW THE BIG ISSUE IS TIMING WHEN THINGS WILL GET BETTER MEATPACKERS HAVE BEEN UNPROFITABLE MUCH OF THE YEAR BECAUSE OF HIGHER CARCASS PRICES HOGS SOLD IN THE MIDWEST ARE ABOUT 18 OVER YEARAGO PRICES BECAUSE OF AN UNEXPECTED DECLINE IN THE SUPPLY OF ANIMALS FAT ENOUGH FOR SLAUGHTER CATTLE PRICES HIT RECORD LEVELS IN THE SOUTHERN PLAINS BECAUSE THE UNUSUALLY WET WINTER SLOWED THEIR GROWTH RATE ROGER W SPENCER A FOOD ANALYST AT PAINEWEBBER INC IN CHICAGO NOTED THAT RECENT STORMS WITH THEIR SNOW RAIN AND MUD COULD DELAY CATTLE MATURATION BY 30 DAYS OR MORE ALTHOUGH TIGHT SUPPLIES ARE EXPECTED TO EASE BY SUMMER BIG PACKERS HAVE BEEN BIDDING UP PRICES TO KEEP HIGHCAPACITY PROCESSING PLANTS OPERATING IN FISCAL 1992 CONAGRA PROCESSED 56 MILLION HEAD OF CATTLE AND 114 MILLION HOGS IT SELLS BEEF PORK AND LAMB PRODUCTS UNDER SUCH LABELS AS MONFORT ARMOUR FLAVORLAND AND COOK'S 9304080067 930408 TECHNOLOGY BRIEF GENERAL ELECTRIC CO SPANISH GROUP TO SUE FIRM OVER FAULTY MEDICAL DEVICE A LAWYER FOR FAMILIES OF 20 PEOPLE WHO DIED AFTER RECEIVING RADIATION OVERDOSES FROM A FAULTY CANCER TREATMENT DEVICE SAID HE IS SUING GENERAL ELECTRIC CO IN THE US FOR AT LEAST 500 MILLION A JUDGE IN ZARAGOZA SPAIN FOUND A GENERAL ELECTRIC TECHNICIAN GUILTY OF NEGLIGENCE IN A CRIMINAL CASE AND NAMED GENERAL ELECTRIC CGR ESPANA SA A SUBSIDIARY OF GE RESPONSIBLE FOR PAYMENT OF DAMAGES OF 36 MILLION IF THE TECHNICIAN MARIANO CONTE WAS UNABLE TO PAY MR CONTE WAS ALSO SENTENCED TO SIX MONTHS IN PRISON MICHAEL REPISO A LAWYER FOR THE FAMILIES SAID THE AMOUNT AWARDED WAS RIDICULOUSLY SMALL AND WOULD NOT BE ACCEPTED HE SAID HIS GROUP WOULD FILE A CIVIL SUIT IN THE US AGAINST GE THE OPERATOR OF THE LINEAR ACCELERATOR FOR CANCER TREATMENT A SPOKESWOMAN FOR GENERAL ELECTRIC IN FAIRFIELD CONN SAID THE COMPANY HADN'T BEEN SERVED WITH ANY LAWSUIT IN THE US REGARDING THE CASE A SPOKESWOMAN FOR THE UNIT IN SPAIN SAID IT HADN'T YET BEEN OFFICIALLY NOTIFIED OF THE JUDGE'S DECISION AND HASN'T DECIDED WHETHER TO APPEAL 9304080066 930408 WHAT'S NEWS BUSINESS AND FINANCE ACCOUNTING RULE MAKERS TOOK STEPS TO FORCE BUSINESSES TO DEDUCT THE VALUE OF EMPLOYEE STOCK OPTIONS FROM THEIR EARNINGS BUT IN A CONCESSION TO CRITICS OF THE RULE THE OFFICIALS WON'T IMPLEMENT IT UNTIL 1997 AT THE EARLIEST THE CHANGE COMES AMID A PUBLIC OUTCRY OVER HIGH COMPENSATION LEVELS FOR SOME EXECUTIVES UNITED AIRLINES REACHED AN ACCORD WITH BOEING TO DELAY DELIVERY OF SOME PLANES TO THE CARRIER THE MOVE WILL HELP THE UAL UNIT TRIM CAPITAL SPENDING BY 55 BILLION OVER THREE YEARS SOME FIRM ORDERS WILL BE CONVERTED TO OPTIONS POSSIBLY HELPING ITS CREDIT RATING UAL STOCK JUMPED 9875 TO 137 AIRLINE STOCKS RALLIED BOOSTING THE OVERALL MARKET AFTER UNITED REPORTED STRONGER TRAFFIC AND ITS PLAN TO CUT CAPITAL SPENDING THE DOW JONES INDUSTRIALS GAINED 1945 TO 339702 THE DOW JONES TRANSPORTATION AVERAGE HIT A RECORD BOND PRICES ADVANCED GM PUT KEY EXECUTIVES FOR THE FIRST TIME UNDER CONTRACT WITH NONCOMPETE CLAUSES AFTER THE COMPANY LOST ITS PURCHASING BOSS TO VOLKSWAGEN GM INDICATED THE PACTS INCLUDE RAISES THE CLAUSES ARE A FIRST FOR THE BIG THREE PRUDENTIALBACHE SECURITIES INFLATED PAYOUTS ON SOME MONEYLOSING ENERGY PARTNERSHIPS IT SOLD IN THE 1980S BY DISTRIBUTING BORROWED FUNDS TO INVESTORS INTERNAL DOCUMENTS SHOW DOZENS OF FIRST BOSTON TRADERS AND INVESTMENT BANKERS HAVE QUIT THIS YEAR SAYING THEIR PAY IS TOO LOW THE COMPANY PLAYED DOWN THE DEPARTURES BUT SOME OFFICIALS SAID THE FIRM HAS LOST SOME OF ITS MOST TALENTED PEOPLE TOKYO STOCKS SURGED WEDNESDAY THE NIKKEI CLIMBED 34243 OR 18 TO 1982923 UP 18 IN THE PAST MONTH PRICES ROSE FURTHER EARLY THURSDAY JAPANESE OFFICIALS EXPRESSED CONCERN THAT STOCKS HAVE RISEN HIGHER THAN WARRANTED BY ECONOMIC FACTORS THEY FEAR ANOTHER MARKET PLUNGE CONTINENTAL AIRLINES PROJECTED AN OPERATING PROFIT FOR 1994 AFTER YEARS OF LOSSES BUT THE CARRIER'S FIGURES ASSUMED AN AIRLINEINDUSTRY UPTURN NBC PICKED CBS NEWS EXECUTIVE PRODUCER ANDREW LACK TO HEAD NBC NEWS SUCCEEDING MICHAEL GARTNER WHO LEFT IN A CONTROVERSY OVER THE STAGING OF A GM PICKUP TRUCK EXPLOSION FEDERAL PROSECUTORS MOVED TO DISMISS INDICTMENTS AGAINST LAWYERS CLARK CLIFFORD AND ROBERT ALTMAN IN THE BCCI SCANDAL BUT THE TWO MEN STILL FACE NEW YORK STATE INDICTMENTS AND COULD FACE NEW FEDERAL CHARGES COPPER FUTURES PRICES PLUNGED TO THE LOWEST LEVELS SINCE 1988 ON ANEMIC CONSUMPTION OF COPPER WORLDWIDE TROUT TRADING FUND INCURRED A LOSS OF 6 MILLION OR 09 OF THE COMMODITY INVESTMENT FUND'S ASSETS AFTER AN EMPLOYEE MADE UNAUTHORIZED TRADES GROUPE MICHELIN POSTED A PROFIT FOR 1992 AFTER A LOSS THE YEAR BEFORE BUT THE FRENCH TIRE MAKER SAID IT PLANS ANOTHER ROUND OF COST CUTTING BECAUSE BUSINESS CONDITIONS HAVE WORSENED CONAGRA PREDICTED EARNINGS IN THE CURRENT QUARTER COULD BE LESS THAN ANALYSTS EXPECTED THE FOOD COMPANY'S STOCK PLUNGED 275 OR 107 TO 23 BONDS LEHMAN BROTHERS TREASURY INDEX 500716 UP 894 COMMODITIES OIL 2037 A BARREL UP SEVEN CENTS DOW JONES FUTURES INDEX 12448 OFF 159 SPOT INDEX 12290 OFF 050 DOLLAR 11352 YEN OFF 051 16195 MARKS UP 00075 9304080065 930408 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG FOR YEARS APPLE COMPUTER'S MACINTOSH MODELS HAVE WON PRAISE FOR SUPERIOR DESIGN BUT CRITICS HAVE ZINGED APPLE FOR OFFERING TOO FEW CHOICES BEING SLOW TO INTRODUCE FASTER CHIPS INTO MAINSTREAM MODELS AND ABOVE ALL CHARGING WAY TOO BIG A PREMIUM OVER LESS ELEGANT BUT COMPETITIVE IBMCOMPATIBLE MODELS THE COMPANY HAS STARTED TO CHANGE ALL THAT WITH A FLURRY OF NEW DESKTOP MACHINES INCLUDING SOME MIDRANGE MODELS THAT HAVE A SPEEDIER CENTRAL PROCESSOR CHIP THE COMPUTER'S BRAIN CALLED THE 68040 APPLE ALSO HAS GROWN MUCH MORE AGGRESSIVE IN PRICING MACINTOSHES STILL COST MORE THAN IBMCOMPATIBLES BUT THE PREMIUM IS SHRINKING TO MORE CLOSELY APPROXIMATE THE ADDED VALUE IN MACS SUPERIOR BUILTIN VIDEO AND AUDIO CAPABILITIES PLUS NETWORKING AND EASE OF EXPANSION THAT TYPICALLY COST EXTRA IN IBMCOMPATIBLES THE TROUBLE IS THE COMPANY HAS REVAMPED ITS LINE SO QUICKLY THAT MANY CONSUMERS ARE CONFUSED ABOUT WHICH MAC IS WHICH WORSE APPLE'S FACTORIES HAVE BEEN UNABLE TO KEEP UP WITH THE DEMAND UNLEASHED BY THE NEW PRODUCTS THE COMPANY SAYS IT IS STEPPING UP PRODUCTION BUT SHORTAGES ARE STILL CHRONIC SO HERE'S A SHORT SELECTIVE GUIDE TO THE NEW MACINTOSH DESKTOP LANDSCAPE WITH EMPHASIS ON TWO MODELS THE LC III AND CENTRIS 610 THAT I CONSIDER GREAT VALUES FOR THE HOME AND OFFICE RESPECTIVELY PRICES CITED ARE TYPICAL FOR DISCOUNT RETAILERS AT THE TOP OF THE LINE COSTING 4000 TO 6000 ARE THE QUADRA MODELS MONSTER MACHINES BEST SUITED TO ENGINEERS AND GRAPHICS PROFESSIONALS THEY HAVE FAST VERSIONS OF THE 68040 CHIP A MOTOROLA PRODUCT COMPARABLE TO THE INTEL 80486 IN IBMCOMPATIBLES HUGE HARD DISK DRIVES AND FAST BUILTIN NETWORKING USING THE STANDARD ETHERNET SYSTEM AT THE OTHER END OF THE DESKTOP LINE ARE MACINTOSHES AIMED AT HOMES AND OFFICES THE 1400 COLOR CLASSIC IS THE LATEST VERSION OF THE OLD ONEPIECE LOWPOWERED MAC WITH BUILTIN SCREEN THIS TIME IN COLOR IT MAY BE ADEQUATE FOR STUDENTS AND OTHERS SHORT ON SPACE BUT I FIND THE SCREEN TOO SMALL FOR EXTENDED WORK THE MOST ATTRACTIVE NEW MODEL FOR HOMES COLLEGE USE AND SMALL BUSINESSES IN MY VIEW IS THE LC III A SVELTE TWOPIECE COLOR MACHINE WITH AMPLE POWER THAT CAN BE BOUGHT FOR ABOUT 1700 WITH FOUR MEGABYTES OF MEMORY AN 80MEGABYTE HARD DRIVE AND A FULLSIZE COLOR MONITOR THE LC III HAS THE SAME 68030 PROCESSOR AS THE IICI WHICH UNTIL RECENTLY WAS APPLE'S MAINSTREAM BUSINESS MACHINE AND WHICH COST WELL OVER 3000 NOT SO LONG AGO THE LC III IS ROBUST ENOUGH FOR NEARLY ANY PROJECT WRITING SIMPLE ACCOUNTING ROUTINE GRAPHICS EDUCATIONAL SOFTWARE I KNOW SEVERAL JOURNALISTS WHO HAVE WRITTEN BOOKS ON THIS COMPUTER'S SLOWER PREDECESSORS THE LC AND LC II AND THE LATEST VERSION IS MORE THAN ENOUGH MACHINE FOR RUNNING A SMALL HOMEBASED BUSINESS THE LC III CHASSIS WILL ALSO SHOW UP IN APPLE'S PERFORMA LINE SOLD AT SUCH MASS MERCHANTS AS SEARS ROEBUCK THESE MACHINES ARE RETITLED MACS WITH LOTS OF BUILTIN SOFTWARE AND OTHER FEATURES AT A PACKAGE PRICE THE COMPANY IS EXPECTED TO INTRODUCE SEVERAL NEW PERFORMAS NEXT WEEK INCLUDING THE PERFORMA 450 IT WILL BE AN LC III WITH A 120MEGABYTE HARD DISK FOUR MEGABYTES OF MEMORY A GOOD COLOR MONITOR A BUILTIN FAX MODEM AND INTEGRATED SOFTWARE FOR ABOUT 1800 APPLE HAS SLASHED BY ONETHIRD THE PRICE OF THE NEXT MODEL UP IN ITS LINE THE SIXMONTH OLD IIVX WHICH CAN HANDLE AN INTERNAL CDROM DRIVE AND IS WELL SUITED TO BE A HOME MULTIMEDIA MACHINE IT'S A BIT FASTER BUT LARGER THAN AN LC III AND NOW SELLS FOR ABOUT 2100 WITH FIVE MEGABYTES OF MEMORY AN 80MEGABYTE HARD DRIVE AND A CDROM DRIVE BUT NO MONITOR SOME EARLY IIVX BUYERS ARE FURIOUS THAT APPLE CUT THE PRICE SO MUCH SO QUICKLY BUT THE COMPANY ISN'T OFFERING REFUNDS THE MASSMERCHANT VERSION OF THE IIVX THE PERFORMA 600 WHICH FEATURES BUILTIN SOFTWARE AND TWICE THE HARDDRIVE CAPACITY IS ALSO EXPECTED TO DROP IN PRICE THOUGH MUCH MORE MODESTLY NEXT WEEK REPLACING THE IICI AS APPLE'S MAINSTREAM BUSINESS MACHINE IS THE NEW CENTRIS LINE POWERED BY THE FAST 68040 CHIP THESE MACHINES HAVE ROOM FOR A BUILTIN CDROM DRIVE AND BUILTIN ETHERNET NETWORKING BY FAR THE MOST IMPRESSIVE NEW MAC TO ME IN PRICE AND PERFORMANCE IS THE CENTRIS 610 WHICH I'VE BEEN TESTING THIS MODEL COMES IN A LOW LEAN CASE ABOUT THE SIZE OF A PIZZA BOX AND FEATURES BRILLIANT GRAPHICS AND SOUND IT IS MUCH SPEEDIER THAN THE IIVX AND TWO TO THREE TIMES FASTER THAN THE IICI ACCORDING TO TESTS RUN BY MACWEEK MAGAZINE THOUGH THE CENTRIS 610'S CHIP RUNS AT ONLY 20 MEGAHERTZ MY TEST MODEL SEEMED TO MOVE MORE QUICKLY THROUGH COMMON TASKS THAN MY IBMCOMPATIBLE 486 MACHINE RUNNING WINDOWS AT TWICE THE PROCESSOR SPEED YET THE CENTRIS 610 WITH FOUR MEGABYTES OF MEMORY AND AN 80MEGABYTE HARD DISK COSTS ONLY ABOUT 1650 WITHOUT MONITOR OR ROUGHLY HALF WHAT A IICI USED TO COST THE SAME MACHINE WITH EIGHT MEGABYTES OF MEMORY A 230MEGABYTE HARD DISK AND A SPEEDY BUILTIN CDROM DRIVE COSTS ABOUT 2600 OR 3000 WITH A SHARP MONITOR EACH OF MY FAVORED MODELS THE LC III AND CENTRIS 610 HAS JUST ONE INTERNAL SLOT FOR ADDING EXPANSION CARDS BUT THIS IS FAR LESS IMPORTANT ON MACS THAN ON IBMCOMPATIBLES BECAUSE APPLE BUILDS IN SPECIAL SOCKETS ON THE BACK OF MACS THAT LET USERS EXPAND AND NETWORK THEM APPLE HAS DONE A GREAT DEAL TO MAKE ITS DESKTOP LINE FASTER BETTER AND MORE AFFORDABLE NOW IT NEEDS TO DO BETTER AT KEEPING STORES ADEQUATELY SUPPLIED 9304080064 930408 SEC APPROVES NEW OPTION FOR MUTUAL FUND INVESTORS WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION APPROVED A NEW FORM OF MUTUAL FUND THAT COMBINES ELEMENTS OF CLOSEDEND AND OPENEND FUNDS THE SOCALLED INTERVAL FUND WILL BE ESSENTIALLY A CLOSEDEND FUND THAT ALLOWS INVESTORS PERIODICALLY TO BUY BACK SOME OF THEIR SHARES AT NET ASSET VALUE OR THE VALUE OF THE UNDERLYING PORTFOLIO OF SECURITIES UNTIL NOW INVESTORS HAVE HAD TWO MUTUALFUND OPTIONS OPENEND FUNDS WHICH WILL BUY BACK SHARES AT ANY TIME AT NET ASSET VALUE AND CLOSEDEND FUNDS WHICH ISSUE A FIXED NUMBER OF SHARES THAT ARE TRADED ON A STOCK EXCHANGE AT A DISCOUNT OR PREMIUM TO THE UNDERLYING PORTFOLIO IN OTHER ACTION THE SEC GAVE PERMISSION TO BROKERS AND DEALERS TO CONDUCT PASSIVE MARKETMAKING IN NASDAQLISTED SECURITIES DURING THE SOCALLED COOLING OFF PERIOD BEFORE A SECONDARY OFFERING THE RULE IS DESIGNED TO ALLOW MARKETMAKERS TO KEEP STOCK PRICES FROM DROPPING TOO STEEPLY DURING THAT TWODAY PERIOD THE SEC HOWEVER MADE THE RULE TEMPORARY TO MAKE SURE MARKETMAKERS DON'T WORK THE OPPOSITE WAY INTENDED AND INSTEAD PUSH THE STOCK PRICE UP DURING THE COOLINGOFF PERIOD THE RULE WILL BE IN EFFECT FOR NINE MONTHS WHILE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS STUDIES IT AND REPORTS BACK TO THE SEC THE AGENCY WILL THEN DECIDE ON MAKING THE RULE PERMANENT 9304080063 930408 AT CROSS CO SAYS PAYOUT MAY CHANGE LINCOLN RI AT CROSS CO SAID IT IS NOT REALISTIC TO EXPECT A CONTINUED DIVIDEND PAYOUT RATIO AT CURRENT LEVELS THE MAKER OF PENS LEATHER AND GIFT PRODUCTS SAID IN ITS LATEST ANNUAL REPORT THAT SHAREHOLDERS MAY ASK IF CROSS WILL CONTINUE TO PAY ITS FULL DIVIDEND WHICH IS WELL IN EXCESS OF A 100 PAYOUT RATIO THIS IS NOT IN OUR LONGTERM PLAN AND WE WANT TO RETURN TO THE 5060 PAYOUT RATIO WHICH WAS OUR NORM FOR MANY YEARS MICHAEL ELHILLOW CHIEF FINANCIAL OFFICER INSISTED THAT THE REPORT DOES NOT IMPLY THAT A DIVIDEND REDUCTION IS IMMINENT HE SAID THAT NO DECISION WILL BE MADE UNTIL AN APRIL 22 BOARD MEETING IN 1992 CROSS PAID 128 A SHARE IN DIVIDENDS BUT EARNED ONLY 64 CENTS A SHARE DOWN FROM 126 A SHARE IN 1991 ITS MOST RECENT QUARTERLY DIVIDEND 32 CENTS A SHARE WAS DECLARED DEC 8 AND PAID FEB 11 IN THE PAST IT ALSO HAS DECLARED A DIVIDEND IN LATE APRIL THE ANNUAL REPORT SAID IT EXPECTS SALES AND EARNINGS GROWTH TO RESUME THIS YEAR BUT ADDED THAT IT IS NOT REALISTIC TO SUPPORT A PAYOUT RATIO OF BETTER THAN 100 OF EARNINGS OVER AN EXTENDED PERIOD THE LETTER TO SHAREHOLDERS CONCLUDED THAT DIRECTORS WILL CONTINUE TO ADDRESS THE DIVIDEND ON A QUARTERTOQUARTER BASIS 9304080062 930408 TECHNOLOGY PACIFIC BELL TO UPGRADE TO FIBEROPTIC NETWORK SAN FRANCISCO PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT PLANS TO UPGRADE ITS TELEPHONE NETWORK TO A HIGHCAPACITY FIBEROPTIC SYSTEM THAT WOULD REACH EVERY HOME IN CALIFORNIA BY 2015 THE COMPANY ALSO SAID IT EXPECTS TO INSTALL A COMMUNICATIONS SUPERHIGHWAY TO HALF OF ITS CALIFORNIA CUSTOMERS WITHIN THE NEXT 10 YEARS AND WILL BEGIN TESTING VIDEOONDEMAND VIDEOCONFERENCING GAMES HOMESHOPPING AND EDUCATIONAL SERVICES WITHIN THE NEXT 18 MONTHS THE ANNOUNCEMENT FOLLOWS A FEBRUARY DISCLOSURE BY PACIFIC BELL THAT IT PLANS TO SPEND 1 BILLION IN THE NEXT FIVE YEARS TO UPGRADE ITS REMAINING ANALOG SWITCHES TO DIGITAL YESTERDAY THE COMPANY SAID IT WILL BE STUDYING VARIOUS WAYS TO REPLACE ITS COPPERWIRE NETWORK WITH OPTICAL FIBER AND COAXIAL CABLE THE TYPE OF WIRE USED TO CARRY CABLETELEVISION SIGNALS PACIFIC BELL'S PRESIDENT PHIL QUIGLEY SAID THE COMPANY PLANS TO START BUILDING A HIGHCAPACITY NETWORK IN SEVERAL NEW RESIDENTIAL DEVELOPMENTS LATER THIS YEAR AND WILL JOIN FORCES WITH AT LEAST ONE CABLETV COMPANY TO PROVIDE VIDEO SERVICES BY THIS TIME NEXT YEAR WE'LL HAVE TALKED TO MOST OF THE CABLE COMPANIES IN OUR TERRITORY TO DETERMINE THEIR LEVEL OF INTEREST IN COOPERATIVE VENTURES MR QUIGLEY SAID 9304080061 930408 MARKETING & MEDIA COURT BLOCKS ENFORCEMENT OF FCC INDECENCY RULES WASHINGTON AP A FEDERAL APPEALS COURT PANEL BLOCKED THE FEDERAL COMMUNICATIONS COMMISSION FROM ENFORCING ITS RULES AGAINST INDECENT PROGRAMMING ON CERTAIN CABLE TV CHANNELS THIS MEANS THAT CABLE COMPANIES THAT LEASE TIME TO INDEPENDENT PROGRAMMERS CANNOT PREVENT THEM FROM SHOWING OR DISCUSSING SEXUALLY EXPLICIT MATERIAL THE FCC ISSUED RULES EARLIER THIS YEAR STRICTLY LIMITING SUCH PROGRAMMING ON SOCALLED LEASEDACCESS CHANNELS AS PART OF ITS ENFORCEMENT OF THE NEW CABLE TV LAW CIVIL LIBERTIES GROUPS QUICKLY SUED THE DISTRICT OF COLUMBIA CIRCUIT COURT OF APPEALS IN RESPONSE TO THAT LAWSUIT SAID THE FCC RULES COULD NOT GO INTO EFFECT UNTIL THE COURT COULD HEAR ARGUMENTS FROM THE GROUPS HEARINGS WILL BE SCHEDULED FOR THE FALL THE JUDGES RULED THE GROUPS ARE THE AMERICAN CIVIL LIBERTIES UNION PEOPLE FOR THE AMERICAN WAY THE 90'S CHANNEL ALLIANCE FOR COMMUNITY MEDIA AND ALLIANCE FOR COMMUNICATIONS DEMOCRACY THEY SAID IT WAS UNCONSTITUTIONAL TO PROHIBIT INDECENT SPEECH ON LEASEDACCESS CHANNELS THAT IS ALLOWED ON REGULAR BROADCAST AND OTHER CABLE CHANNELS INDECENCY IS DEFINED IN COMMUNICATIONS LAW AS MATERIAL THAT DESCRIBES OR DEPICTS SEXUAL OR EXCRETORY ACTIVITIES OR ORGANS IN A PATENTLY OFFENSIVE MANNER AS MEASURED BY CONTEMPORARY COMMUNITY STANDARDS UNLIKE OBSCENITY WHICH IS BANNED INDECENT SPEECH CAN BE BROADCAST BETWEEN 8 PM AND 6 AM 9304080060 930408 BUSINESS BRIEF NIAGARA MOHAWK POWER CORP UTILITY SAYS REFINANCED PACTS TO SAVE MONEY IN FUEL COSTS NIAGARA MOHAWK POWER CORP SAID IT RENEGOTIATED POWER PURCHASE AGREEMENTS WITH TWO INDEPENDENT POWER DEVELOPERS THAT WILL SAVE IT MORE THAN 200 MILLION IN FUEL COSTS OVER THE NEXT 25 YEARS NIAGARA MOHAWK SAID KAMINE DEVELOPMENT CORP AND BESICORP GROUP INC AGREED TO USE THEIR BEST EFFORTS TO REFINANCE EACH OF THEIR FIVE PROJECTS KAMINE DEVELOPMENT OF UNION NJ AND BESICORP OF KINGSTON NY DID NOT RETURN CALLS CONCERNING THE AGREEMENT IT WASN'T CLEAR WHETHER THE DEVELOPERS HAVE OTHER CUSTOMERS IN LINE TO TAKE EXCESS POWER OR HOW THEY WOULD SECURE NEW FINANCING IN 1992 KAMINE AND BESICORP TOOK A 13 MILLION PAYMENT FROM NEW YORK STATE ELECTRIC & GAS CO TO SCRAP A PLANNED COGENERATION FACILITY IN CORNING NY NIAGARA MOHAWK A SYRACUSE NYBASED ELECTRICGAS UTILITY HAS BEEN WAGING AN INTENSE EFFORT TO RENEGOTIATE SEVERAL LONGTERM FIXEDCOST AND FIXEDSUPPLY AGREEMENTS IT SIGNED IN THE LATE 1980S UNDER FEDERAL LEGISLATION AIMED AT OPENING UP CUSTOMERS FOR INDEPENDENT POWER PRODUCERS PLUMMETING ELECTRICITY PRICES HAVE MADE MANY OF THE AGREEMENTS UNECONOMICAL NIAGARA MOHAWK SAID PART OF ITS AGREEMENT WITH KAMINE AND BESICORP ALLOWS FOR THE UTILITY TO TAKE POWER AS IT NEEDS IT RATHER THAN TAKING A FIXED AMOUNT THE FIVE PLANTS WILL BE CAPABLE OF PROVIDING ABOUT 330 MEGAWATTS OF ELECTRICITY ONCE COMPLETED 9304080059 930408 FOREIGN EXCHANGE DOLLAR ENDS THE DAY MOSTLY HIGHER AS TRADERS CONTINUE TO MOVE TO SIDELINES BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS CONTINUED TO MOVE TO THE SIDELINES YESTERDAY AHEAD OF THE HOLIDAY WEEKEND AND THE DOLLAR CREPT MOSTLY HIGHER AS TRADERS EVENED OUT THEIR POSITIONS BUT WITH THE IMMEDIATE OUTLOOK FOR THE US CURRENCY CLOUDY DEALERS SAID MANY PLAYERS TURNED TO TRADING OTHER CURRENCIES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16195 MARKS UP FROM 16120 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11352 YEN DOWN FROM 11403 YEN STERLING WAS TRADING AT 15135 OFF FROM 15145 AT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 16164 MARKS AND AT 11369 YEN THE BIGGEST LOSER YESTERDAY WAS THE MARK WHICH SLID SHARPLY IN CROSSTRADING AGAINST THE YEN AND SEVERAL OF ITS EUROPEAN COUNTERPARTS THE MARK HAD GAINED SHARPLY LAST WEEK AS INVESTORS RECONSIDERED EXPECTATIONS OF A QUICK CUT IN GERMAN INTEREST RATES DEALERS SAID REMINDERS THAT THE BUNDESBANK IS EASING ITS GRIP ON CREDIT ALONG WITH TRADERS' NATURAL PROPENSITY TO BALANCE OUT SHORTTERM POSITIONS BEFORE A HOLIDAY WEEKEND UNDERMINED THE MARK THIS WEEK THE CROSSES SHOW A TREMENDOUS AMOUNT OF PROFITTAKING ACROSS THE BOARD SAID CARL AMENDOLA A VICE PRESIDENT AT BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG IT'S JUST A LOT OF SQUARING UP BUT DEALERS NOTED A GENERAL BIAS AGAINST THE MARK YESTERDAY MR AMENDOLA TRACED IT TO MORE TALK THAT THE BUNDESBANK WILL CONTINUE ITS INTERMITTENT RATECUT POLICY THE CENTRAL BANK YESTERDAY TRIMMED ITS LOWEST MONEYMARKET RATE SLIGHTLY TO 813 FROM 817 LAST WEEK ALTHOUGH THE RATESHAVING DISAPPOINTED SOME PLAYERS WHO HAD HOPED FOR A MORE DRASTIC MOVE DEALERS SAID THE ULTIMATE EFFECT WAS TO REINFORCE THE VIEW THAT GERMAN RATES WILL GRADUALLY DECLINE THE SPECULATION OF LOWER GERMAN RATES WILL CONTINUE SAID NORI KATO A VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN HE SAID A SERIES OF COMMENTS BY GERMAN OFFICIALS THIS WEEK CLEARLY POINTED TO A POLICY OF SLOW BUT STEADY EASING AS A RESULT DEALERS SAID INVESTORS ARE LOOKING FOR ALTERNATIVES TO THE MARK BUT WITH THE DOLLAR'S SHORTTERM PROSPECTS UNCERTAIN MR KATO SAID MANY INVESTORS ARE TURNING TO THE YEN WHICH IS CLEARLY CLIMBING WITH DOLLARMARK DIRECTIONLESS WITH DOLLARYEN INCHING LOWER I THINK THE SAFE PLAY WAS MARKYEN HE SAID LATE YESTERDAY IN NEW YORK THE MARK WAS QUOTED AT 7011 YEN DOWN SHARPLY FROM 7067 YEN TUESDAY ALTHOUGH DEALERS SAID THE YEN ALSO IS HEADING HIGHER AGAINST THE DOLLAR SO FAR DOLLAR BUYING JUST ABOVE THE POSTWORLD WAR II LOW OF 11334 YEN HAS KEPT THE DOLLAR FROM DROPPING SHARPLY DEALERS SAID MUCH OF THE DEMAND COMES FROM SPECULATORS COVERING BETS AGAINST THE DOLLAR FOR FEAR THE BANK OF JAPAN WILL INTERVENE TO SLOW THE YEN'S RISE TUESDAY DEALERS SAID THE CENTRAL BANK HAD CALLED BROKERS TO CHECK RATES USUALLY A PRELUDE TO INTERVENTION SIMILAR RUMORS YESTERDAY WERE DISCOUNTED WITH THE BULK OF THE MARKET POISED TO BUY YEN ON THE BELIEF THAT JAPAN AND ITS TRADING PARTNERS WANT TO SEE A GRADUAL YEN APPRECIATION AS A WAY TO REDUCE JAPAN'S GROWING TRADE SURPLUS DEALERS SAID THE DOLLAR ENJOYS ONLY TEMPORARY SUPPORT THE TREND STILL REMAINS ON THE DOWNSIDE SAID MR KATO THE MARK MEANWHILE STILL FACES PRESSURE AGAINST MOST OTHER EUROPEAN CURRENCIES DEALERS SAID THE SAME EXPECTATIONS OF GRADUALLY FALLING GERMAN RATES THAT LED INVESTORS TO BUY YEN AGAINST THE MARK HAVE HELPED STERLING AND THE FRENCH FRANC GAIN AS WELL 9304080058 930408 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY IS SEEKING TO INTENSIFY CONTACTS WITH THE US TO DEVELOP JOINT RESPONSES QUICKLY IN FOREIGN POLICY AND SECURITY MATTERS IT ALSO WANTS TO SET UP AN EARLY WARNING SYSTEM TO SETTLE TRADE ISSUES BEFORE THEY ESCALATE A CONFIDENTIAL DRAFT PAPER PREPARED BY THE EC COMMISSION ACKNOWLEDGES BIG DIFFERENCES ON TRADE ISSUES BUT IS OPTIMISTIC THAT MINOR TRADE SPATS CAN BE KEPT FROM SOURING TIES WITH THE US ALSO THE PAPER IDENTIFIES RUSSIA THE MIDEAST THE FORMER YUGOSLAVIA AND NUCLEAR NONPROLIFERATION AMONG AREAS FOR THE EC AND US TO DEVELOP JOINT RESPONSES AND ACTIONS MEANWHILE A DOCUMENT BEING PREPARED THROUGH THE FOREIGN MINISTRIES OF EC NATIONS CALLS FOR HIGHLEVEL EC AND US MEETINGS ON SHORT NOTICE TO ADD FLEXIBILITY TO THE RELATIONSHIP THE AIM IS TO BUILD ON A 1990 TRANSATLANTIC DECLARATION THAT CALLS FOR TWICEYEARLY MEETINGS BOTH PAPERS WILL BE COMPLETED FOR CONSIDERATION BY EC FOREIGN MINISTERS AT AN APRIL 2425 MEETING IN DENMARK JAPAN'S SLUMPING COMPUTER INDUSTRY JOINED OTHER SECTORS IN SEEKING GOVERNMENT SUBSIDIES TO HELP COVER COSTS OF RETRAINING EMPLOYEES UNDER THE COUNTRY'S CUSTOMARY LIFETIME EMPLOYMENT PRACTICES LAYOFFS ARE RARE MEMBERS OF THE JAPAN ELECTRONIC INDUSTRY DEVELOPMENT ASSOCIATION WHICH INCLUDES MOST COMPUTER MAKERS APPLIED FOR THE GOVERNMENT HELP TO BE ELIGIBLE A COMPANY MUST HAVE THREE MONTHS OF FALLING PRODUCTION AS WELL AS A DECLINE IN ORDERS OTHER INDUSTRIES INCLUDING STEEL AND AUTO PARTS MAKERS HAVE APPLIED FOR OR ARE PURSUING SUBSIDIES THE EUROPEAN COMMUNITY WARNED SEVEN COUNTRIES TO STOP ALLEGED EFFORTS TO PUT SOME INTERNATIONAL COURIERS OUT OF BUSINESS ON A COMPLAINT BY A TRADE GROUP FOR EXPRESSPOST FIRMS THE EC FILED OBJECTIONS TO ANTICOMPETITIVE COLLUSION AND ABUSE OF DOMINANT POSITIONS BY THE POSTAL SERVICES OF BELGIUM BRITAIN FRANCE GERMANY FINLAND SWEDEN AND SWITZERLAND THE POSTAL AGENCIES MAY ALTER FEES FOR REMAILING BY COURIERS THROUGH OTHER COUNTRIES REMAILING IS CHEAPER FOR BUSINESSES BUT ADDS TO POSTAL AGENCIES' COSTS WITHOUT ENHANCING THEIR REVENUES THE COURIERS SAY POST OFFICES HAD ELIMINATED BULK DISCOUNTS AND HAD RETURNED OR CHARGED PUNITIVE DUTIES ON REMAILINGS LINES FORMED AT MOSCOW GASOLINE STATIONS AS PRICES DOUBLED AND MOTORISTS FEARED FURTHER INCREASES BECAUSE OF RUSSIA'S CUTS OF OIL SUBSIDIES IN ITS FREEMARKET PROGRAM LOWOCTANE GAS SOLD FOR 70 RUBLES 98 US CENTS A LITER CHEAP BY WESTERN STANDARDS BUT DEAR IN INFLATIONPLAGUED RUSSIA MONTHLY PAY AVERAGED 13000 RUBLES 1825 IN JANUARY SUBSIDY CUTS ARE CAUSING WIDESPREAD EXPECTATIONS OF PRICE BOOSTS FOR TRANSPORTATION AND OTHER PUBLIC SERVICES HEATING FUEL AND FOOD ABOUT 100000 NURSES AND OTHER MEDICAL WORKERS IN JAPAN STAGED STRIKES FOR AS LONG AS EIGHT HOURS AT ABOUT 580 HOSPITALS NATIONWIDE DEMANDING HIGHER PAY AND BETTER WORKING CONDITIONS A GROWING NURSING SHORTAGE HAS CAUSED LONG WORKING HOURS AS THE NUMBER OF NURSES WHO QUIT ABOUT 40000 EVERY YEAR EXCEED NEW HIRES THE COUNTRY HAS ABOUT 830000 NURSES AND NEEDS AT LEAST 1230000 THE EUROPEAN COMMUNITY BANNED IMPORTS OF MEAT LIVESTOCK AND DAIRY PRODUCTS FROM CENTRAL AND EASTERN EUROPE AND THE FORMER SOVIET REPUBLICS IT CITED INCREASED INCIDENTS OF FOOTANDMOUTH DISEASE A VIRAL CONTAGION THAT CAN BE TRANSMITTED TO HUMANS THE EC PLACED A SIMILAR BAN LAST MONTH ON EXPORTS FROM THE FORMER YUGOSLAVIA THE LATEST BAN WHICH MAY LAST A MONTH WHILE EC PERSONNEL CHECK THE EXPORTING COUNTRIES' ANIMAL AND FOOD CONTROLS DOESN'T AFFECT CURED MEAT PRODUCTS OR DAIRY GOODS MADE FROM PASTEURIZED MILK CHINA BROADENED ITS DISPUTE WITH BRITAIN ABOUT HONG KONG CONDEMNING A PLANNED MOVE OF A NAVY BASE TO ALLOW DEVELOPMENT OF THE DOWNTOWN SITE IN THE BRITISH COLONY THE SINOBRITISH FIGHT BEGAN OVER HONG KONG'S PROPOSED DEMOCRATIC REFORMS PRIOR TO THE 1997 TRANSFER OF THE TERRITORY'S SOVEREIGNTY TO CHINA CHINA ALSO HAS ISSUED THREATS SUCH AS VOWS TO VOID CONTRACTS IN RESPONSE TO HONG KONG'S FINANCING OF A NEW AIRPORT AND IT HAS FORMED A PANEL TO PREPARE FOR HONG KONG'S TRANSFER WITHOUT BRITISH GOVERNMENT PARTICIPATION IN OPENING THE NEW ISSUE BEIJING TERMED UNACCEPTABLE BRITAIN'S DECISION TO RELOCATE THE NAVY BASE TO AN ISLAND AND INSISTED THAT BRITAIN CONSULT WITH CHINA ON THE DISPOSITION OF MILITARY SITES SAYING THAT THEY SHOULD BE TURNED OVER TO THE CHINESE ARMY IN 1997 AND IN A SHIFT FROM RECENT ATTEMPTS TO DEPICT HONG KONG GOV CHRIS PATTEN AS THE MAIN VILLAIN IN THE DISPUTE ABOUT DEMOCRATIC REFORMS CHINA ACCUSED BRITAIN OF SEEKING SUPPORT AMONG WESTERN ALLIES TRINIDAD AND TOBAGO TO COMBAT WIDESPREAD FINANCIAL SPECULATION SUSPENDED FOREIGNCURRENCY TRANSACTIONS UNTIL TUESDAY WHEN COMMERCIAL BANKS WILL SET THE RATE FOR THE CARIBBEAN NATION'S DOLLAR FIXED SINCE 1986 AT 425 TO THE US DOLLAR THE WORLD HEALTH ORGANIZATION SAID MOTOR VEHICLE ACCIDENTS WORLDWIDE CAUSE 700000 FATALITIES A YEAR OR AN AVERAGE OF ONE EVERY 50 SECONDS AND 15 MILLION INJURIES OR ONE EVERY TWO SECONDS 9304080057 930408 BLOCKBUSTER ENTERTAINMENT MAY SEEK STAKE IN TEAMS FORT LAUDERDALE FLA WHEN IT COMES TO SPORTS BLOCKBUSTER ENTERTAINMENT CORP ALREADY HAS BEEN A SPONSOR NOW IT MIGHT BECOME AN OWNER THE VIDEO AND MUSIC RETAILER WHICH SPONSORED THE BLOCKBUSTER BOWL FROM 1990 THROUGH 1993 IS CONSIDERING BUYING INTO THE PROFESSIONAL SPORTS HOLDINGS OF ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAYNE HUIZENGA THE BOARD ON TUESDAY DISCUSSED POSSIBLY BUYING A STAKE IN MR HUIZENGA'S BASEBALL AND HOCKEY FRANCHISES BUT NO DECISION WAS MADE ACCORDING TO A COMPANY SPOKESMAN MR HUIZENGA OWNS THE NEW FLORIDA MARLINS BASEBALL TEAM AND A FLORIDA HOCKEY FRANCHISE WHICH WILL HIT THE ICE THIS FALL HE ALSO OWNS HALF OF JOE ROBBIE STADIUM IN SOUTH FLORIDA AND A MINORITY SHARE OF THE MIAMI DOLPHINS FOOTBALL TEAM WITH AN OPTION TO BUY MORE ONE INDUSTRY ANALYST SAID SUCH A MOVE BY BLOCKBUSTER WOULD CONTINUE THE COMPANY'S PLAN TO EXPAND ITS REACH BUT IT COULD BE RISKY IN THE ENTERTAINMENT ARENA BLOCKBUSTER HAS BEEN IN AN ACQUISITIVE MOOD IN RECENT MONTHS BUYING STAKES IN REPUBLIC PICTURES CORP AND SPELLING ENTERTAINMENT INC TWO HOLLYWOOD PRODUCTION COMPANIES LAST YEAR IT ALSO ACQUIRED TWO RECORD RETAIL CHAINS 9304080056 930408 POLITICS & POLICY WANT SOME TOUGH BUDGET CUTS OK PICK UP AN AX AND TRY THESE BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SO YOU THINK PRESIDENT CLINTON AND THE DEMOCRATS IN CONGRESS AREN'T TOUGH ENOUGH ON SPENDING YOU AREN'T ALONE HALF OF THOSE RESPONDING TO THE LATEST WALL STREET JOURNAL/NBC NEWS POLL SAY MR CLINTON'S PLAN TO NARROW THE FEDERAL DEFICIT FURTHER DETAILS OF WHICH ARE TO BE ISSUED TODAY RELIES TOO MUCH ON TAX INCREASES AND TOO LITTLE ON SPENDING CUTS IN THIS ERA OF CORPORATE COSTCUTTING MANY BUSINESS EXECUTIVES THINK PRESIDENT CLINTON IS PROTECTING A BLOATED GOVERNMENT WHILE PUTTING THE DEFICITCUTTING BURDEN ON THE TAXPAYER DID HE CUT SPENDING ENOUGH NO WAY SAYS J PETER GRACE WR GRACE & CO'S CHAIRMAN WHOM RONALD REAGAN RECRUITED TO FERRET OUT GOVERNMENT WASTE LET'S SEE IF YOU CAN DO BETTER IT WON'T BE EASY FIRE EVERY SINGLE FEDERAL EMPLOYEE FROM MR CLINTON TO THE RECEPTIONIST AT THE LOCAL FEDERAL BUREAU OF INVESTIGATION OFFICE AND YOU'RE STILL IN THE RED AND REMEMBER THAT EVEN MR REAGAN THAT FERVENT FOE OF BIG GOVERNMENT DIDN'T MANAGE TO MAKE IT ANY SMALLER ALL YOU HAVE TO DO IS SHRINK THE ANNUAL DEFICIT TO 200 BILLION BY THE LAST YEAR OF MR CLINTON'S TERM NOT GO ALL THE WAY TO A BALANCED BUDGET AFTER ALL THAT IS AS MUCH AS HE PROPOSES TO START WITH CANCEL EVERY SPENDING INCREASE THE PRESIDENT PROPOSES INCLUDING THE ECONOMIC STIMULUS THAT SENATE REPUBLICANS HAVE STYMIED THEN CANCEL EACH OF HIS TAX INCREASES AND FEES YOU ARE NOW FACING A DEFICIT OF ABOUT 265 BILLION ASSUMING YOU ACCEPT ALL THE SPENDING CUTS THAT MR CLINTON BACKS SO YOU NOW HAVE TO CUT SPENDING BY ABOUT 65 BILLION WHAT ABOUT ALL THAT WASTE THAT MR GRACE'S FAMOUS COMMISSION IDENTIFIED IN 1983 AS THE PAINLESS CURE FOR THE DEFICIT TWO THOUSAND FOUR HUNDRED AND SEVENTYEIGHT SUGGESTIONS WOULD HAVE SAVED 4244 BILLION OVER THREE YEARS MR GRACE SAYS WITHOUT EVEN CHECKING HIS NOTES ACTUALLY MR REAGAN'S BUDGET EXPERTS COUNTED ONLY 2160 UNDUPLICATED SUGGESTIONS OF WHICH 1497 HAD BEEN CARRIED OUT BEFORE MR REAGAN LEFT TOWN NO ONE CAN SAY FOR SURE HOW MUCH WAS SAVED BUT THE GENERAL ACCOUNTING OFFICE AND CONGRESSIONAL BUDGET OFFICE FIGURED THAT THE SAVINGS FROM THE ENTIRE REPORT WOULD HAVE BEEN ABOUT A THIRD OF MR GRACE'S ESTIMATE MOST BIGTICKET SUGGESTIONS WEREN'T ADOPTED MANY OF THEM DIDN'T CALL FOR STREAMLINING GOVERNMENT BUT CHANGING POLICIES LIKE RAISING 5 BILLION BY TAXING SOME OF THE POOR ON BENEFITS THEY RECEIVE STILL THE GOVERNMENT WASTES PLENTY MR CLINTON RECOGNIZING THE POLITICAL IMPORTANCE OF TIGHTENING THE GOVERNMENT'S BELT BEFORE RAISING TAXES AIMS TO SQUEEZE OUT 6 BILLION BY DOING AWAY WITH 100000 JOBS AND SLICING TRAVEL CONSULTANTS AND SUPPLIES PERHAPS HE COULD DO MORE HOUSE REPUBLICANS SAY HE SHOULD AIM FOR 15 BILLION THE SELFSTYLED CONGRESSIONAL PORKBUSTERS' COALITION IS CALLING FOR RESCINDING 747 EXAMPLES OF WHAT IT DEEMS WASTEFUL SPENDING APPROVED LAST YEAR INCLUDING 400000 TO INVESTIGATE THE CAUSE OF THE ALGAL BLOOM CRISIS IN MAUI AND 17 MILLION FOR A VISITORS' CENTER AT THE ABRAHAM LINCOLN MEMORIAL IN SPRINGFIELD ILL THAT THE NATIONAL PARK SERVICE SAYS ISN'T NECESSARY CUTTING SUCH PROGRAMS CLEARLY WOULD HELP MR CLINTON CONVINCE AMERICANS OF THE NEED FOR SACRIFICE BUT IT WOULDN'T SAVE ENOUGH TO GET YOU EVEN CLOSE TO THE GOAL ALTHOUGH THERE IS PLENTY OF PORK AND OTHER WASTE IN THE FEDERAL BUDGET REDUCING THAT WASTE WOULDN'T REDUCE SPENDING SUFFICIENTLY SAY FORMER REAGAN ADVISER WILLIAM NISKANEN AND ECONOMIST STEPHEN MOORE OF THE CATO INSTITUTE A LIBERTARIAN THINKTANK MAJOR REDUCTIONS IN THE MAIN FEDERAL SPENDING PROGRAMS ARE NECESSARY BEFORE YOU GET TO WORK A FEW OBSERVATIONS NO BALANCEDBUDGET AMENDMENTS THEY MAY FORCE SPENDING CUTS BUT THEY DON'T HELP DECIDE WHAT TO CUT SAVING 500 MILLION IS NOTHING TO SNEEZE AT BUT YOU NEED TO FIND 130 SUCH SAVINGS TO MEET THE GOAL SLICING SPENDING ACROSSTHEBOARD BY A FEW PERCENTAGE POINTS SOUNDS APPEALING BUT IT WON'T SUFFICE THE GAP IS TOO BIG AND A FEW FACTS OF THE 15 TRILLION MR CLINTON WANTS TO SPEND IN FISCAL 1994 WHICH BEGINS OCT 1 ABOUT 212 BILLION WILL GO FOR INTEREST PAYMENTS THAT MUST BE MADE ANOTHER 278 BILLION WILL GO FOR DEFENSE THAT'S A LOT OF MONEY BUT BEAR IN MIND THAT THE MILITARY BUDGET LEFT BY PRESIDENT BUSH MEASURED AGAINST THE SIZE OF THE ECONOMY IS SMALLER THAN ANY SINCE THE END OF WORLD WAR II AND BY THE END OF HIS TERM MR CLINTON'S PLANS TO CHOP ANOTHER 20 OFF ADJUSTED FOR INFLATION GIVEN INSTABILITIES IN NUCLEARARMED RUSSIA IT MAY BE IMPRUDENT TO CHOP MUCH FURTHER SO YOU'LL PROBABLY WANT TO CONCENTRATE ON THE REMAINING TWOTHIRDS OF THE BUDGET CUT IT INTO FOUR PIECES MEDICARE AND MEDICAID FOR THE ELDERLY AND THE POOR 240 BILLION SOCIAL SECURITY 321 BILLION OTHER FEDERAL BENEFITS FROM PEANUT SUBSIDIES TO BUREAUCRATS' PENSIONS 192 BILLION AND EVERYTHING ELSE 270 BILLION IN ALL START WITH MEDICARE AND MEDICAID MR CLINTON ALREADY HAS PROPOSED SQUEEZING HOSPITALS AND DOCTORS TO SAVE 17 BILLION A YEAR BY THE LAST YEAR OF HIS TERM YOU COULD SQUEEZE HARDER BUT PRIVATE EMPLOYERS ALREADY COMPLAIN WITH SOME JUSTIFICATION THAT THIS WOULD SIMPLY PUSH MORE OF THE NATION'S HEALTHCARE TAB ONTO THEM HOUSE REPUBLICANS FOUND ANOTHER 6 BILLION A YEAR BUT IT ISN'T EXACTLY A SPENDING CUT THEIR SCHEME MAKE THE ELDERLY PARTICULARLY THE WELLOFF PAY MORE NOTING THE SOARING INFLATION IN HEALTH COSTS REAGAN ADMINISTRATION BUDGET DIRECTOR DAVID STOCKMAN WROTE RECENTLY THAT PERHAPS HILLARY CLINTON WILL FIX THIS BUT UNTIL THAT SILVER BULLET IS DISCOVERED THERE IS NO WAY TO SAVE MEANINGFUL BUDGET DOLLARS EXCEPT TO IMPOSE HIGHER COSTS ON MIDDLE AND UPPERINCOME BENEFICIARIES PERHAPS YOU SHOULD TURN TO OTHER BIG ITEMS MR CLINTON CAME UP WITH ONLY 2 BILLION A YEAR IN FARMSUBSIDY CUTS CHOPPING SUBSIDIES PAID TO CORN WHEAT RICE AND COTTON FARMERS COULD SAVE 3 BILLION MORE A YEAR THE CBO SAYS CUTTING BACK VARIOUS SUBSIDIES TO HELP FARMERS EXPORT COULD SAVE ANOTHER 1 BILLION BUT BE FOREWARNED CONGRESS WOULDN'T EVEN ACCEPT MR CLINTON'S MODEST FARMSUBSIDY CUTS MOVE ON TO GOVERNMENT RETIREES WHO GET A BETTER DEAL ON RETIREMENT THAN MANY PRIVATESECTOR EMPLOYEES IN PART BECAUSE OTHER ASPECTS OF WORKING FOR THE GOVERNMENT TEND TO BE LESS GENEROUS THE CBO ESTIMATES THAT AS MUCH AS 4 BILLION A YEAR COULD BE SAVED BY TREATING GOVERNMENT PENSIONS MORE LIKE PRIVATE PENSIONS WHILE YOU'RE AT IT SAVE ANOTHER 2 BILLION BY ENDING DISABILITY BENEFITS FOR THE 12 MILLION VETERANS WHO AREN'T SEVERELY DISABLED PAUSE TO TAKE STOCK SQUEEZE 5 BILLION MORE FROM STREAMLINING THE BUREAUCRACY THAN MR CLINTON PROJECTS ADD TO THAT ALL THE FARMSUBSIDY GOVERNMENTRETIREE AND VETERANS' CUTS AND EVEN THE GOP'S 6 BILLION MEDICARE CUT YOU'RE STILL ONLY AT 23 BILLION THAT BRINGS US TO SOCIAL SECURITY THE GRANDDADDY OF ALL FEDERAL BENEFIT PROGRAMS IN A SENSE SOCIAL SECURITY ISN'T THE PROBLEM PAYROLL TAXES PAID BY TODAY'S WORKERS MORE THAN COVER THE BENEFITS PAID TO TODAY'S ELDERLY AND SOCIAL SECURITY COSTS WON'T GROW TERRIBLY RAPIDLY UNTIL THE BABY BOOMERS BEGIN RETIRING BUT SOCIAL SECURITY COULD BE PART OF THE SOLUTION PAYING A COSTOFLIVING ADJUSTMENT THAT IS TWO PERCENTAGE POINTS LESS THAN THE INFLATION RATE FOR EACH OF THE NEXT FIVE YEARS COULD SAVE 25 BILLION A YEAR BY THE FINAL YEAR OF MR CLINTON'S TERM BE BRAVER THAN MR CLINTON AND GO FOR IT EVEN THOUGH IT WOULD HURT THE POOREST OF THE ELDERLY BUT BE PREPARED FOR A HARSH REACTION SOMEWHERE ON THE TOMBSTONE OF A DECEASED CONGRESSMAN YOU'LL SEE THE EPITAPH HE TOUCHED SOCIAL SECURITY SAYS COMEDIAN MARK RUSSELL YOU'VE NOW SLICED 48 BILLION OFF THE DEFICIT BUT YOU STILL HAVEN'T MATCHED MR CLINTON SO TURN TO THE EVERYTHING ELSE CATEGORY WHICH INCLUDES FEEDING THE SEALS AT THE NATIONAL ZOO BUYING PENCILS FOR THE INTERNAL REVENUE SERVICE AND PAYING CANCER RESEARCHERS AND HEAD START TEACHERS I'D TAKE SOME OF THE OLDIES BUT GOODIES SAYS DANIEL MITCHELL OF THE CONSERVATIVE HERITAGE FOUNDATION WHY CAN'T WE LOOK AT THE APPALACHIAN REGIONAL COMMISSION THE SMALL BUSINESS ADMINISTRATION THE NATIONAL ENDOWMENT FOR THE ARTS AMTRAK YOU COULD GOP SEN HANK BROWN OF COLORADO WOULD ELIMINATE THE AMTRAK SUBSIDIES LESS THAN 1 BILLION THE SENIOR REPUBLICAN ON THE HOUSE BUDGET COMMITTEE JOHN KASICH OF OHIO WOULD WIPE OUT THE LEGAL SERVICES CORP 400 MILLION WHICH PROVIDES LAWYERS TO THE POOR AND THE US TRAVEL AND TOURISM ADMINISTRATION 200 MILLION ECONOMIC COLUMNIST ROBERT SAMUELSON SUGGESTS SAVING 1 BILLION A YEAR BY ENDING FEDERAL SPENDING ON THE ARTS AND HUMANITIES CUT BACK ON NATIONAL INSTITUTES OF HEALTH RESEARCH GRANTS TO GET ANOTHER 1 BILLION KILL THE SMALL BUSINESS ADMINISTRATION TO SAVE 5 BILLION TAKE A HINT FROM THE CATO INSTITUTE AND SAVE ANOTHER 1 BILLION BY ENDING US CONTRIBUTIONS TO THE WORLD BANK AND THE INTERNATIONAL MONETARY FUND SORRY BORIS BUT YOU'RE STILL ROUGHLY 7 BILLION SHY OF THE MARK BIGTICKET ITEMS ARE THE PLACE YOU'D HAVE TO GO AND THOSE WOULD BE CONTROVERSIAL SAYS BUDGET DIRECTOR LEON PANETTA HE OUGHT TO KNOW AS A CALIFORNIA CONGRESSMAN HE CRITICIZED THE SPACE STATION AND THE SUPERCOLLIDER THE GIGANTIC TEXAS ATOMSMASHER AS BUDGET DIRECTOR HE HAS MANAGED ONLY TO LIMIT FUNDING FOR THEM YOU CAN DO BETTER CANCEL THE SUPERCOLLIDER AND SAVE MAYBE 8 BILLION THAT WOULD HAVE BEEN SPENT OVER THE NEXT DECADE CANCEL THE SPACE STATION AND SAVE ANOTHER 30 BILLION TINKER WITH THE ACCOUNTING RULES TO BOOK ENOUGH OF THE SAVINGS SAY ABOUT 8 BILLION IN 1997 TO GET YOU HOME CONGRATULATIONS YOU GOT THE FISCAL 1997 TO 200 BILLION WITHOUT RAISING TAXES YOU'LL NEVER GET REELECTED AND YOU MAY NEED TO MOVE TO SWITZERLAND TO ESCAPE THE ANGRY OLD FOLKS LOBBYISTS AND OTHER INTEREST GROUPS AND OF COURSE YOU HAVEN'T ELIMINATED THE DEFICIT ACCEPT EVERY SPENDING CUT PRESIDENT CLINTON PROPOSED BUT CANCEL HIS PROPOSALS TO INCREASE SPENDING OR RAISE TAXES OR FEES AND YOU START WITH A 265 BILLION DEFICIT FOR FISCAL 1997 WHICH BEGINS OCT 1 1996 HERE'S ONE WAY TO GET THE DEFICIT DOWN TO 200 BILLION 9304080055 930408 ALCOA'S EARNINGS DROPPED BY 50 IN FIRST QUARTER BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH ALUMINUM CO OF AMERICA'S PROFITS FELL 50 IN THE FIRST QUARTER AS LOW METAL PRICES PROLONGED THE ALUMINUM GIANT'S SLUMP NET INCOME WAS 276 MILLION OR 31 CENTS A SHARE DOWN FROM 551 MILLION OR 64 CENTS A SHARE A YEAR EARLIER SALES FELL TO 211 BILLION FROM 225 BILLION THE RESULTS REPORTED AFTER THE CLOSE OF TRADING WERE AT THE LOW END OF ANALYSTS' EXPECTATIONS THIS IS NOT A STRONG SHOWING SAID THOMAS M VAN LEEUWEN AN ANALYST WITH LEHMAN BROTHERS BUT HE SAID THE RESULTS WERE UNLIKELY TO SHOCK THE MARKET WHICH HAS ALREADY BEEN SHAKEN IN RECENT WEEKS BY WEAKENING ALUMINUM PRICES THE BULK OF ALCOA'S PROFIT CAME FROM ITS OVERSEAS ALUMINA OPERATIONS ALCOA BLAMED THE DECLINE IN RESULTS ON METAL FROM THE FORMER SOVIET REPUBLICS WHICH IS KEEPING ALUMINUM INGOT PRICES AT HISTORICALLY LOW LEVELS IT ALSO CITED SEVERE PRICE COMPETITION IN THE CAN SHEET MARKET SHIPMENTS DECLINED TO 610000 METRIC TONS FROM 666000 METRIC TONS REFLECTING DROUGHTRELATED OUTAGES AND PRODUCT SHIPMENTS MADE IN THE FOURTH QUARTER THAT HAD BEEN INTENDED FOR THE FIRST QUARTER A METRIC TON EQUALS 220462 POUNDS BECAUSE OF ITS ALUMINA BUSINESS AND A COSTCUTTING EFFORT ALCOA HAS OUTPERFORMED OTHER ALUMINUM MAKERS MOST OF WHICH ARE EXPECTED TO REPORT LOSSES FOR THE FIRST QUARTER BUT ITS CONTINUED PROBLEMS DEMONSTRATE ITS VULNERABILITY TO THE WORLD'S WEAK SUPPLYDEMAND BALANCE FOR ALUMINUM AN OVERSUPPLY OF METAL CAUSED BY THE EXPORTS FROM THE FORMER SOVIET UNION AND BY WESTERN PRODUCERS' RELUCTANCE TO TRIM CAPACITY HAS SWELLED INVENTORIES TO A 12WEEK SUPPLY NEARLY DOUBLE THE DESIRABLE LEVEL ALCOA SHOULD DO MODESTLY BETTER IN THE SECOND QUARTER BECAUSE OF SEASONAL DEMAND BUT MR VAN LEEUWEN SAYS WE CAN EXPECT IT TO STAY LIKE THIS FOR SOME TIME HE EXPECTS ALCOA TO EARN 205 A SHARE FOR THE YEAR 9304080054 930408 MINOLTA CAMERA SETS CUTBACKS TOKYO MINOLTA CAMERA CO WILL FORCE ALL OF ITS 6700 WORKERS TO STAY HOME FOR 12 DAYS DURING THE APRILSEPTEMBER FISCAL HALF TO TRIM LOSSES BY 200 MILLION YEN 17 MILLION A SPOKESMAN FOR THE JAPANESE CAMERA MAKER SAID THE SPOKESMAN ALSO SAID A RECOVERY IN CONSUMER DEMAND IS SLOW IN COMING MEANING MINOLTA'S PRETAX LOSS DURING THE FISCAL YEAR THROUGH NEXT MARCH COULD EXCEED THE 12 BILLION YEN OFFICIALLY PROJECTED THE COMPANY WILL PAY EMPLOYEES 80 OF THEIR WAGES FOR THE DAYS THEY ARE KEPT AWAY FROM WORK THE SPOKESMAN SAID MINOLTA ALSO IS IN THE MIDST OF OTHER STREAMLINING MEASURES INCLUDING REDUCING ITS STAFF BY 1000 WITHIN THREE YEARS VIA ATTRITION 9304080053 930408 BUSINESS BRIEF JACK ECKERD CORP PACT IS REACHED WITH BANKS ON 950 MILLION REFINANCING JACK ECKERD CORP SAID IT REACHED A PRELIMINARY AGREEMENT WITH CHEMICAL BANKING CORP AND NATIONSBANK CORP ON A 950 MILLION REFINANCING PACKAGE ECKERD A CLOSELY HELD DRUGSTORE OPERATOR BASED IN CLEARWATER FLA SAID THE MOVE WILL ALLOW THE COMPANY TO SIMPLIFY ITS DEBT STRUCTURE AND SIGNIFICANTLY REDUCE ITS ANNUAL INTEREST AND DIVIDEND COSTS UPON CLOSING ACCORDING TO ECKERD THE PROCEEDS AND OTHER SOURCES OF CASH WILL BE USED TO REDEEM THE COMPANY'S OUTSTANDING BANK LOANS 11 3/4 SENIOR NOTES 13 SENIOR SECURED FIXEDRATE NOTES SENIOR SECURED FLOATINGRATE NOTES ALL OR A SUBSTANTIAL PORTION OF ITS 13 DISCOUNT SUBORDINATED DEBENTURES AND ITS 14 1/2 CUMULATIVE REDEEMABLE PREFERRED STOCK ECKERD ALSO SAID THE REFINANCING WILL ALLOW IT TO FUND EXPANSION THE COMPANY OPERATES 1692 DRUGSTORES IN 13 STATES 9304080052 930408 FASB MOVES TO MAKE FIRMS DEDUCT OPTIONS BUT PLAN TO SUBTRACT VALUE OF RIGHTS FROM PROFITS IS FOR 1997 AT EARLIEST BY LEE BERTON AND JOANN S LUBLIN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE FINANCIAL ACCOUNTING STANDARDS BOARD IN A CLOSELY WATCHED DECISION MOVED TO FORCE BUSINESSES TO DEDUCT THE VALUE OF EMPLOYEE STOCK OPTIONS FROM THEIR EARNINGS BUT IN A CONCESSION TO CRITICS IN BUSINESS AND THE ACCOUNTING INDUSTRY THE BOARD DELAYED IMPLEMENTING ITS PROPOSAL UNTIL 1997 FINANCIAL STATEMENTS AT THE EARLIEST THE 6TO1 VOTE CAME AMID A TORRENT OF OPPOSITION FROM BUSINESS GROUPS INSTITUTIONAL INVESTORS COMPENSATION CONSULTANTS AND THE SIX MAJOR ACCOUNTING FIRMS BUT THE ACTION WAS SUPPORTED BY SOME SHAREHOLDER GROUPS AND LAWMAKERS WHO CONSIDER STOCK OPTION PACKAGES FOR TOP EXECUTIVES TO BE EXCESSIVE IRONICALLY THOUGH THE CHANGE WON'T AFFECT SENIOR EXECUTIVES AS MUCH AS MIDDLE MANAGERS WHO COULD END UP RECEIVING SMALLER STOCK OPTION GRANTS COMPENSATION CONSULTANTS SAID THE NEW RULE ALSO COULD RESULT IN FEWER OPTIONS FOR ALL EMPLOYEES AT SMALLER COMPANIES THE FASB THE ACCOUNTING PROFESSION'S CHIEF RULEMAKING BODY BOWED TO INDUSTRY CRITICS BY DELAYING THE EARNINGS CHARGE BEYOND THE USUAL ONETOTWOYEAR CONSIDERATION PERIOD IN THE INTERIM THE BOARD PROPOSED THAT COMPANIES DISCLOSE OPTIONS' VALUE BY ADDING A FOOTNOTE TO THEIR 1994 FINANCIAL STATEMENTS AT THE EARLIEST THE DELAYED ACTION MEANS THE NORWALK CONN BOARD WON'T EVEN ISSUE A FORMAL PROPOSAL FOR PUBLIC COMMENT UNTIL MID1993 WITH A FINAL RULING EXPECTED LATE NEXT YEAR AFTER PUBLIC HEARINGS ON THE ISSUE STOCK OPTIONS PERHAPS THE MOST POPULAR FORM OF EXECUTIVE PAY CURRENTLY ARE THE ONLY MAJOR TYPE OF COMPENSATION THAT ISN'T DEDUCTED FROM REPORTED PROFITS DENNIS BERESFORD FASB CHAIRMAN SAID THAT COMPANIES COULD BE GIVING AWAY WHAT THEY SHOULDN'T BECAUSE THEY DON'T HAVE TO ACCOUNT FOR THE VALUE OF OPTIONS UNDER THE FASB'S PROPOSAL STOCK OPTIONS WHICH GIVE THE HOLDER THE RIGHT TO BUY SHARES AT A SPECIFIED PRICE WOULD BE CHARGED AGAINST A COMPANY'S EARNINGS WHEN THEY ARE GRANTED RATHER THAN EXERCISED BOARD OFFICIALS SAID THEY RECOGNIZED SUCH A CHARGE MIGHT HIT STARTUP OR SMALL HIGHTECHNOLOGY COMPANIES ESPECIALLY HARD UNABLE TO PAY HIGH SALARIES MANY OF THESE COMPANIES RELY ON LARGE STOCKOPTION GRANTS TO ATTRACT EMPLOYEES STARTUP COMPANIES WHICH HAVE CONTRIBUTED MOST OF THE NEW JOBS IN INDUSTRY OVER THE LAST 15 YEARS WOULD SUFFER THE MOST CONTENDS BERNARD VONDERSCHMITT PRESIDENT OF XILINX INC A MIDSIZE SEMICONDUCTOR MAKER IN SAN JOSE CALIF WHICH GIVES STOCK OPTIONS TO ALL 550 EMPLOYEES MANY OF THOSE COMPANIES WOULD BE IMPAIRED BECAUSE THEY INSTEAD WOULD HAVE TO PAY HIGHER WAGES AND SALARIES TO EMPLOYEES AT A TIME WHEN THEY DON'T HAVE ANY CASH IN A SURVEY OF 500 STARTUP COMPANIES MAINLY IN HIGHTECH BUSINESSES 90 SAID THAT DEDUCTING STOCKOPTION VALUES FROM PROFITS WOULD PROMPT THEM TO STOP ISSUING OPTIONS TO MOST EMPLOYEES OTHER THAN TOP EXECUTIVES OR TO DROP OPTIONS ENTIRELY VENTURE ONE A SAN FRANCISCO RESEARCH FIRM CONDUCTED THE SURVEY BIG CORPORATIONS TYPICALLY GIVE STOCK OPTIONS TO MIDDLE MANAGERS AND SENIOR EXECUTIVES IF FASB HAS ITS WAY THE ANNUAL EARNINGS CHARGE FOR THE S&P 500 COMPANIES IS ESTIMATED TO BE ALMOST 9 BILLION SAID JUDE RICH CHAIRMAN OF CONSULTANTS SIBSON & CO AS A RESULT THE FASB PROPOSAL WILL CHANGE PAY PRACTICES DRAMATICALLY PREDICTED ALAN JOHNSON MANAGING DIRECTOR OF JOHNSON ASSOCIATES INC A COMPENSATION CONSULTING FIRM BUT THE PEOPLE WHO WILL BE HURT ARE NOT THE FAT CATS AT THE TOP OF THE CORPORATE LADDER HE ASSERTED A NUMBER OF COMPANIES ARE SAYING THEY WILL ELIMINATE AWARDS FOR MIDDLE MANAGERS AND BELOW MIDDLE MANAGERS ALREADY HURT BY PAY FREEZES AND DOWNSIZING WILL FACE REDUCED OPTION OPPORTUNITIES AGREED MICHAEL HALLORAN A PARTNER WITH CONSULTANTS STRATEGIC COMPENSATION ASSOCIATES THE FASB'S MOVE IS ANOTHER NAIL IN THE COFFIN OF THE MIDDLEMANAGEMENT RANKS MOST MAJOR EMPLOYERS WOULD STILL OFFER STOCK OPTIONS TO TOP MANAGEMENT BECAUSE THAT'S WHERE THERE IS THE MOST IMPACT ON INDIVIDUAL PERFORMANCE MR HALLORAN SUGGESTED A HANDFUL OF LARGE COMPANIES SUCH AS PEPSICO INC MERCK & CO AND WENDY'S INTERNATIONAL INC GIVE OPTIONS TO A MUCH WIDER RANGE OF EMPLOYEES THE FASB PROPOSAL COULD SIGNIFICANTLY AFFECT PROFITS OF CONCERNS WITH SUCH BROADBASED PLANS THEIR PRETAX EARNINGS MIGHT DECLINE BETWEEN 45 AND 10 A YEAR COMPARED WITH ABOUT 4 FOR ALL BIG COMPANIES ACCORDING TO MR RICH'S ANALYSIS WENDY'S WOULD DROP ITS STOCKOPTION PROGRAM IF MR RICH'S 10 ESTIMATE PROVED TRUE AN OFFICIAL SAID THE DUBLIN OHIO RESTAURANT CHAIN CURRENTLY GIVES OPTIONS TO ABOUT 5000 OF ITS 40000 EMPLOYEES INCLUDING STORE MANAGEMENT PERSONNEL AND ALL ADMINISTRATIVE EMPLOYEES WE WOULD HAVE TO FIND ANOTHER WAY OF COMPENSATING OUR EMPLOYEES BECAUSE WE WOULD NOT BE IN FAVOR OF ACCEPTING A 10 HIT ON PRETAX EARNINGS THE WENDY'S OFFICIAL SAID WE COULDN'T AFFORD TO TAKE IT HE STRESSED THAT THE CONCERN HASN'T DONE ITS OWN CALCULATIONS YET ON THE OTHER HAND PEPSI SAID IT INTENDS TO KEEP ITS SOCALLED SHAREPOWER PLAN BEGUN IN 1989 EVERY YEAR ABOUT 120000 OF ITS 370000 EMPLOYEES WORLDWIDE RECEIVE OPTIONS ON COMPANY STOCK WORTH 10 OF THEIR PREVIOUS YEAR'S EARNINGS OUR GOAL IS TO PRESERVE SHAREPOWER A PEPSI SPOKESMAN SAID WE WILL CONTINUE TO MAKE OUR CASE IN SUPPORT OF BROADBASED STOCK OPTION PROGRAMS HE ALSO EXPECTS UNIONS AND EMPLOYEES TO SPEAK OUT AS PEPSI'S COMMENTS SUGGEST BUSINESSES WON'T EASILY BACK DOWN IN THEIR FIGHT AGAINST THE FASB STOCKOPTIONS MOVE A GROUP OF ELECTRONICS AND BIOTECHNOLOGY COMPANIES HAS FORMED A COALITION THAT INTENDS TO INTRODUCE FEDERAL LEGISLATION GIVING OPTIONS MORE FAVORABLE TAX TREATMENT THE BOARD'S LONG LEAD TIME ALSO MEANS OPPONENTS WILL HAVE MORE TIME TO PUSH THEIR CAUSE THE FASB PUT THE CHARGE OFF SO LONG THAT IT COULD ALWAYS BE REVERSED BEFORE IT HAPPENS SAID MR JOHNSON THE CONSULTANT THE BOARD REPLACES TWO MEMBERS THIS SUMMER FOR INSTANCE REQUIRING COMPANIES TO SIMPLY DISCLOSE OPTIONS' VALUE ALSO MAY HELP DEFUSE THE ISSUE OF CHARGING OPTIONS TO EARNINGS SOME EXECUTIVES BELIEVE AT THIS POINT WE ARE VERY GLAD TO BE LOOKING AT DISCLOSURE FOR THREE YEARS SAID SHELDON RUTSTEIN CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT OF RAYTHEON CO A MAJOR MAKER OF DEFENSE AND CONSUMER PRODUCTS IN LEXINGTON MASS MY HOPE IS THAT THEY WILL MAKE THAT REQUIREMENT PERMANENT THE FASB HAS BEEN BOMBARDED BY CRITICISM EVER SINCE IT FIRST INFORMALLY PROPOSED DEDUCTING STOCKOPTION VALUES FROM PROFITS A DECADE AGO MUCH OPPOSITION HAS COME FROM THE BUSINESS ROUNDTABLE A POWERFUL GROUP OF 200 CHIEF EXECUTIVES AT THE NATION'S BIGGEST CORPORATIONS THE ROUNDTABLE WHICH HAS WAGED AN UNRELENTING CAMPAIGN TO STOP THE STOCKOPTION EARNINGS CHARGE SAYS IT WELCOMES THE DELAY IN IMPOSING THE RULE BUT A ROUNDTABLE SPOKESMAN REITERATED THAT THE BUSINESS GROUP STILL FAVORS DISCLOSURE RATHER THAN DISTORTION OF FINANCIAL STATEMENTS 9304080051 930408 ENTERPRISE ONCE REDHOT PIP FACES LEGAL ASSAULT BY FRANCHISEES SUIT RAISING COMMON ISSUES UNDERSCORES HOW FAST HIGHFLIERS CAN FALTER BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL HOT FRANCHISES CAN COOL OFF PRETTY FAST POSTAL INSTANT PRESS INC OF AGOURA HILLS CALIF WAS BOOMING IN THE LATE 1980S WITH MORE THAN 1100 FRANCHISED OUTLETS MAKING IT THE LEADER IN THE PRINTSHOP INDUSTRY BUT TODAY PIP HAS SHRUNK TO 815 OUTLETS A NUMBER THAT RIVALS KWIKKOPY CORP AND SIR SPEEDY INC CLAIM TO EXCEED THE FRANCHISER IS EMBROILED IN LAWSUITS AGAINST FRANCHISEES FOR ALLEGED NONPAYMENT OF ROYALTIES AND NOW PIP FACES A LEGAL ASSAULT ITSELF FROM UNHAPPY FRANCHISEES THEY SAY PIP HAS MISLED AND HURT MANY FRANCHISEES ESPECIALLY SINCE KANEMILLER CORP BACKED BY CITICORP LED A LEVERAGED BUYOUT OF THE FRANCHISER FOUR YEARS AGO IN A LAWSUIT FILED IN STATE COURT IN LOS ANGELES LAST FRIDAY 30 CURRENT AND FORMER FRANCHISEES CLAIM THAT PIP BREACHED FRANCHISE CONTRACTS BY SLASHING TECHNICAL SUPPORT AND OTHER SERVICES TO FRANCHISEES ALSO PIP FRAUDULENTLY INDUCED FRANCHISE PURCHASES AND RENEWALS BY MISREPRESENTING CERTAIN FACTS AND OMITTING OTHERS IN PITCHES TO PURCHASERS THE SUIT CHARGES USE OF THE PIP NAME ONCE A VALUABLE COMMODITY HAS NOW BECOME VIRTUALLY WORTHLESS AND IN SOME INSTANCES EVEN A LIABILITY THE SUIT ALLEGES AMID RISING FRANCHISERFRANCHISEE TENSIONS GENERALLY THE PIP CASE RAISES ISSUES THAT COULD BECOME CRUCIAL IN MANY FRANCHISE SYSTEMS FOR EXAMPLE WITHIN SUCCESSFUL CHAINS WHAT PROTECTIONS DO FRANCHISEES ENJOY IF NEW OWNERS TAKE OVER THE FRANCHISER AND MAKE SIGNIFICANT CHANGES IN ITS BUSINESS METHODS BECAUSE OF THE BREADTH OF THEIR CHARGES AGAINST A WELLKNOWN FRANCHISER THE PIP PLAINTIFFS ARE CERTAIN TO RECEIVE ATTENTION FROM PROPONENTS OF NEW LAWS TO CURTAIL FRANCHISER ABUSES AN ATTORNEY FOR PIP FRANCHISEES SAYS STAFF MEMBERS OF TWO HOUSE COMMITTEES HAVE REQUESTED COPIES OF THE SUIT AMONG OTHER DEFENDANTS THE NEW PIP SUIT NAMES BOTH KANEMILLER AND CITICORP PIP AND THE OTHERS THOUGHT OF FRANCHISEES AS ONE BIG CASH COW WHICH WOULD PAY THE ROYALTIES NO MATTER WHAT SAYS WILLIAM P TEDARDS A WASHINGTON DC ATTORNEY HE DEVELOPED THE SUIT WHICH THE LOS ANGELES FIRM GIRARDI & KEESE NOW IS HANDLING FOR THE PLAINTIFFS THE DEFENDANTS DIDN'T UNDERSTAND THAT THE FRANCHISERFRANCHISEE RELATIONSHIP IS A RECIPROCAL WORKING RELATIONSHIP MR TEDARDS ADDS PIP SAYS IT IS STILL PREMATURE TO COMMENT ON MOST ASPECTS OF THE SUIT BUT IT VIGOROUSLY DEFENDS ITS FRANCHISESUPPORT EFFORTS A SPOKESWOMAN SAYS PIP OFFERS FRANCHISEES SOME OF THE MOST COMPREHENSIVE SUPPORT WITHIN THE FRANCHISING INDUSTRY PIP ROUTINELY CONDUCTS SURVEYS TO LEARN HOW WE CAN BETTER SERVE OUR FRANCHISE OWNERS SHE SAYS AS FOR THE COMPANY'S NAME PIP ENJOYS THE HIGHEST BRAND RECOGNITION IN THE INDUSTRY AS REFLECTED IN NUMEROUS CONSUMER SURVEYS SHE SAYS THE SPOKESWOMAN ADDS THAT PIP BELIEVES IT HAS MANY HAPPY FRANCHISE OWNERS TOP OFFICIALS OF KANEMILLER AN INVESTMENT COMPANY IN TARRYTOWN NY DIDN'T RETURN PHONE CALLS SEEKING COMMENT CITICORP NEW YORK DECLINED TO COMMENT ON THE GROUND THAT IT HADN'T SEEN THE SUIT YET PIP AS PREVIOUSLY REPORTED IS THE SUBJECT OF A FEDERAL TRADE COMMISSION INVESTIGATION INTO POSSIBLE VIOLATIONS OF FRANCHISEDISCLOSURE RULES OUR COMPANY FEELS IT HASN'T DONE ANYTHING WRONG PIP'S GENERAL COUNSEL PAUL A PAVLIS HAS SAID IN CONNECTION WITH THAT PROBE AS FOR THE WAVE OF LAWSUITS BY PIP OVER ROYALTIES MOST OF THE DEFENDANTS MAINTAIN THAT THEY COULDN'T AFFORD TO PAY BECAUSE PIP FAILED TO MEET ITS CONTRACTUAL OBLIGATIONS TO FRANCHISEES SOME OF THE SAME FRANCHISEES NOW ARE SUING PIP IN THE NEW CALIFORNIA SUIT AS A FRANCHISER PIP LICENSES OUT ITS NAME AND BUSINESS FORMAT IN EXCHANGE FOR FEES AND ROYALTIES FROM FRANCHISEES FOR REASONS IT NOW DECLINES TO DISCUSS PIP SAYS IT HASN'T ATTEMPTED TO SELL NEW FRANCHISES FOR ALMOST TWO YEARS WE INTEND TO RESUME THE SALE OF FRANCHISES VERY SHORTLY MR PAVLIS SAYS FOUNDED IN 1967 PIP GREW HANDSOMELY FOR YEARS BECOMING A MAJOR PLAYER IN THE FIERCELY COMPETITIVE QUICKPRINTING INDUSTRY MOST OF THE FRANCHISE BUYERS ARE NOVICES TO THE PRINTING TRADE SAYS KATHLEEN BORKOWSKI A FORMER PIP FRANCHISEE IN LANCASTER CALIF THEY ARE EXTREMELY DEPENDENT ON THE FRANCHISER LIKE MANY FRANCHISEES ELSEWHERE SOME AT PIP RISKED THEIR LIFE'S SAVINGS IN RECENT YEARS IT HAS COST MORE THAN 200000 TO OPEN A PIP FRANCHISE FRANCHISEES SAY PIP'S FOUNDER BILL LEVINE PROVIDED EXCELLENT TECHNICAL SUPPORT BUT MR LEVINE STEPPED DOWN IN 1985 THAT IS WHEN MANY FRANCHISEES SAY THEIR TROUBLES BEGAN ACCORDING TO THE SUIT PIP BORROWED MONEY TO STEP UP EXPANSION BUT THEN FAILED TO MEET THE GROWTH TARGETS PREOCCUPIED WITH THE GROWTH PLAN AND FINANCIAL GOALS THE COMPANY ELIMINATED REGULARLY SCHEDULED TECHNICALSUPPORT VISITS TO FRANCHISEES THE SUIT SAYS CAROL LAPORTA A PIP SENIOR VICE PRESIDENT DECLINES TO COMMENT ON THAT BUT SAYS EXPERT BUSINESS CONSULTANTS NOW VISIT FRANCHISEES ON REQUEST ANOTHER SORE POINT IS ADVERTISING IN A SEPARATE SUIT AGAINST PIP ALSO FILED IN A STATE COURT IN LOS ANGELES MS BORKOWSKI CLAIMS THAT THE COMPANY BREACHED HER FRANCHISE CONTRACT BY DISCONTINUING ADS IN HER REGION THE NEW BROADER SUIT CONTAINS SIMILAR CHARGES BY OTHERS MS LAPORTA OF PIP REPLIES ONLY THAT THE CURRENT ADVERTISING PLAN DELIVERS OUTSTANDING VALUE TO THE FRANCHISE OWNERS THE SUIT ALLEGES THAT FRANCHISEES' PROBLEMS GREW EVEN WORSE AFTER THE 68 MILLION BUY OUT FINANCED BY CITICORP AND LED BY KANEMILLER THE TRANSACTION LEFT PIP MORE HEAVILY IN DEBT UNDER PRESSURE FROM THE DEBT PIP CONTINUED TO CUT ITS SERVICES TO EXISTING FRANCHISEES AND ITS SUPPORT AND TRAINING FOR NEW FRANCHISEES THE SUIT SAYS CITICORP WHICH SAYS IT NOW HOLDS A 44 EQUITY STAKE IN PIP RESTRUCTURED THE DEBT IN 1992 FRANCHISEES SAY THEY ALSO BECAME CONCERNED ABOUT TURNOVER AT THE TOP OF PIP THE CURRENT CHIEF EXECUTIVE KENNETH LESSALL IS THE THIRD SINCE KANEMILLER TOOK CONTROL AND THE THIRD WITHOUT A BACKGROUND IN THE PRINTING INDUSTRY FRANCHISEES NOTE PIP NOW HAS LITTLE OR NO PRINTING EXPERTISE THE SUIT CHARGES PIP DECLINES TO COMMENT ON THIS POINT SOME FRANCHISEES SAY THEIR BUSINESSES DECLINED AS A RESULT OF THE ALLEGED ACTIONS BY PIP IN ANY CASE MANY STOPPED PAYING ROYALTIES FRANCHISEES ALLEGE IN THE SUIT THAT FRANCHISEE FAILURES AT PIP HAVE BEEN ON THE RISE THOUGH PIP DECLINES TO DISCUSS MANY ASPECTS OF ITS BUSINESS IT SAYS IT HAS TAKEN MEASURES SUCH AS CHANGING THE ROYALTY STRUCTURE TO HELP FRANCHISEES 9304080050 930408 BUSINESS BRIEF BARNES GROUP INC SMALL FIRSTQUARTER LOSS TIED TO CHARGE IS ESTIMATED BARNES GROUP INC SAID IT EXPECTS TO REPORT A SMALL FIRSTQUARTER LOSS REFLECTING A ONETIME CHARGE COVERING CONSOLIDATION AND WORKFORCE REDUCTION COSTS THE BRISTOL CONN MAKER OF SPRINGS AND OTHER INDUSTRIAL PARTS SAID THE PRETAX CHARGE OF 34 MILLION OR 33 CENTS A SHARE RESULTS FROM THE COSTS OF CONSOLIDATING ITS BARNES AEROSPACE PRECISIONMACHINING BUSINESS AND REDUCING EMPLOYMENT AT ITS JET DIE FABRICATIONS UNIT DESPITE THE FIRSTQUARTER RESULTS BARNES EXPECTS 1993 EARNINGS TO BE HIGHER THAN PROFIT OF 1992 THE COMPANY'S STOCK WAS QUOTED AT 3150 UP 25 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9304080049 930408 MONEYFUND YIELDS ROSE IN LATEST WEEK WHILE ASSETS GREW NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS ROSE FRACTIONALLY FOR THE SECOND CONSECUTIVE WEEK AS INVESTORS ADDED BILLIONS OF DOLLARS TO ASSETS THE AVERAGE SEVENDAY COMPOUND YIELD INCHED UP TO 271 FROM 270 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 579 TAXABLE FUNDS MEANWHILE GREW BY 1585 BILLION TO 48593 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ACCOUNTED FOR 1317 BILLION OF THE INCREASE WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID MUCH OF THE LATEST WEEK'S ASSET GROWTH PROBABLY CAME FROM REFUGEES FROM THE STOCK AND BOND MARKETS WHICH BOTH POSTED DECLINES LATE LAST WEEK HE PREDICTED AN OUTFLOW FROM MONEY FUNDS IN THE CURRENT WEEK NOW THAT STOCK AND BOND PRICES HAVE STABILIZED AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPERSHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 60 DAYS FOR THE FOURTH CONSECUTIVE WEEK A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT A SHARP CHANGE IN SHORTTERM INTEREST RATES SOON YIELDS ON TAXFREE FUNDS SLIPPED IN THE LATEST WEEK THE AVERAGE SEVENDAY COMPOUND YIELD FOR INSTANCE EASED TO 198 FROM 202 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 275 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 287 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 317 TAXEXEMPT FUNDS ROSE BY 162 BILLION TO 10385 BILLION ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY REMAINED AT 50 DAYS 9304080048 930408 INTERNATIONAL DAIMLERBENZ SAYS IT IS SET FOR SCRUTINY ON INSIDER TRADING STUTTGART GERMANY DAIMLERBENZ AG SAID IT WILL SUBMIT ITSELF WITHOUT HESITATION AND WITH A CLEAR CONSCIENCE TO SCRUTINY BY GERMAN INSIDERTRADING AUTHORITIES AFTER RUMORS SURFACED YESTERDAY THAT AN INVESTIGATION MIGHT BE LAUNCHED OFFICIALS AT THE FRANKFURT STOCK EXCHANGE COULDN'T BE REACHED LATE YESTERDAY TO CONFIRM THAT A PROBE IS UNDER WAY UNDER GERMANY'S CURRENT RULES WHICH ARE EXPECTED TO BE TOUGHENED NEXT YEAR VIOLATORS MERELY ARE ORDERED TO FORFEIT ANY GAINS THEY MADE THROUGH THE ALLEGED INSIDER TRADING ALLEGATIONS OF INSIDER TRADING EMERGED EARLY THIS WEEK AFTER DAIMLER ANNOUNCED THAT IT WAS READY TO DISSOLVE MERCEDESAUTOMOBIL HOLDING AG A HOLDING COMPANY FORMED 14 YEARS AGO AS A TAKEOVER DEFENSE THE HOLDING COMPANY EXISTS SOLELY FOR THE PURPOSE OF HOLDING 25 OF DAIMLER'S SHARES AFTER THE FRANKFURT MARKET CLOSED LAST FRIDAY DAIMLER ANNOUNCED THAT IT WOULD SWAP EACH MAH SHARE FOR A DAIMLER SHARE THAT ANNOUNCEMENT UNLEASHED A RALLY IN MAH SHARES WHICH HAVE ALWAYS TRADED AT A DISCOUNT TO DAIMLER SHARES EVEN THOUGH BOTH PAY THE SAME DIVIDEND IT WAS QUICKLY NOTICED THAT MAH SHARES HAD BEGUN TO RISE EVEN BEFORE LAST WEEK'S ANNOUNCEMENT OF THE SHARE SWAP MAH SHARES TYPICALLY TRADE 26 BELOW THE VALUE OF DAIMLER SHARES ON THURSDAY ONE DAY PRIOR TO THE OFFICIAL ANNOUNCEMENT MAH SHARES HAD NARROWED THEIR DIFFERENCE TO 20 AND THEN TO 19 FRIDAY DAIMLER OFFICIALS SAID SPECULATION THAT MAH MIGHT BE DISSOLVED HAS EXISTED FOR MONTHS AND WAS RENEWED LATE LAST MONTH WHEN DAIMLER ANNOUNCED A SERIES OF OTHER REFORMS RELATED TO ITS SHAREHOLDER POLICIES INCLUDING THAT IT PLANS TO ISSUE SHARES ON THE NEW YORK STOCK EXCHANGE 9304080047 930408 AILEEN SAMESTORE SALES FELL NEW YORK AILEEN INC SAID SAMESTORE SALES FOR MARCH DECLINED 213 AS SHOPPING WAS CURTAILED BY BAD WEATHER AND GENERAL WEAKNESS IN CONSUMER CONFIDENCE AND RETAIL BUYING THE WOMEN'S SPORTSWEAR FIRM DIDN'T PROVIDE TOTAL SALES FIGURES FOR THE MONTH IT SAID SALES FOR MARCH WILL BE INCLUDED IN ITS FISCAL SECONDQUARTER RESULTS AILEEN ALSO SAID IT HAS ENTERED INTO A NEW CREDIT AGREEMENT WITH ITS BANK LENDER EXTENDING THE MATURITY DATE OF ITS EXISTING CREDIT LINE TO MARCH 31 1995 AND INCREASING THE AMOUNT OF THE LINE TO 6 MILLION FROM 5 MILLION EXISTING FINANCIAL COVENANTS TO THE COMPANY'S CURRENT BUSINESS PLAN WERE ALSO ADJUSTED UNDER THE AGREEMENT AILEEN SAID THE CREDIT LINE CONTINUES UNSECURED WITH INTEREST AT THE BANK'S PRIME RATE 9304080046 930408 PRUDENTIALBACHE INFLATED PARTNERSHIP PAYOUTS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIALBACHE SECURITIES INC INFLATED PAYOUTS ON SOME OF ITS MONEYLOSING ENERGY LIMITED PARTNERSHIPS SOLD IN THE 1980S BY DISTRIBUTING BORROWED FUNDS TO INVESTORS INTERNAL BROKERAGE DOCUMENTS SHOW THE DOCUMENTS WERE MADE PUBLIC LAST WEEK WHEN A FEDERAL JUDGE IN NEW ORLEANS LIFTED A CONFIDENTIALITY ORDER IN A CASE BROUGHT BY 130000 INVESTORS WHO LOST ABOUT HALF OF THE 14 BILLION THEY PUT INTO ENERGY PARTNERSHIPS SOLD BY THE FIRM NOW CALLED PRUDENTIAL SECURITIES INC PRUDENTIAL SECURITIES WAS ONE OF WALL STREET'S BIGGEST SELLERS OF LIMITEDPARTNERSHIP INVESTMENTS MANY OF WHICH HAVE SOURED AND TRIGGERED LAWSUITS BY INVESTORS MANY OF THE PARTNERSHIP INVESTMENTS WERE HURT BY TAXLAW CHANGES AND SLUMPS IN THE ENERGY INDUSTRY AND LATER IN REAL ESTATE BUT THE THOUSANDS OF PAGES OF NEWLY PUBLIC INTERNAL PRUDENTIALBACHE MEMORANDUMS MARKETING MATERIALS AND MEETING SUMMARIES SUGGEST THAT PRUDENTIAL SECURITIES KNEW IN THE MID1980S THAT THERE WERE PROBLEMS IN PAYING OUT DISTRIBUTIONS TO INVESTORS FROM ENERGY PARTNERSHIPS HOWEVER PRUDENTIAL KEPT ROLLING OUT NEW PARTNERSHIPS UNTIL 1989 THE DISTRIBUTIONS WERE MANIPULATED IN ORDER TO FUEL A MARKETING EFFORT ALLEGES ROBERT H REX OF DICKENSON MURDOCH REX & SLOAN A BOCA RATON FLA LAW FIRM THAT REPRESENTS MORE THAN 100 ENERGYPARTNERSHIP INVESTORS WITH CLAIMS AGAINST THE BROKERAGE FIRM PRUDENTIAL SECURITIES A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA VIGOROUSLY DENIES THAT ALLEGATION YET IN ONE 1985 MEMO SUMMARIZING A MEETING OF PRUDENTIALBACHE PARTNERSHIP EXECUTIVES WILLIAM PITTMAN A FORMER SENIOR EXECUTIVE IN PRUDENTIALBACHE'S PARTNERSHIP GROUP SAID HE WAS CONCERNED THAT BECAUSE SOME OF THE FIRM'S PARTNERSHIPS WERE BORROWING MONEY FOR CURRENT NEEDS THE RETURNS BEING PAID TO INVESTORS DID NOT REFLECT THE TRUE RETURNS BUT WERE INFLATED PRUDENTIAL'S BORROWINGS PRUDENTIAL SECURITIES THE NATION'S FOURTHLARGEST BROKERAGE FIRM SAYS IT BORROWED 57 MILLION FOR A HANDFUL OF PARTNERSHIPS IN 1985 AND 1986 IN ONLY TWO INSTANCES THE BROKERAGE FIRM SAYS DID ITS PARTNERSHIP DISTRIBUTIONS FALL SHORT OF CASH FLOW AND THOSE INSTANCES INVOLVED BORROWING LESS THAN 1 MILLION AND WERE LATER DISCLOSED TO INVESTORS IT WASN'T AN ONGOING SCHEME IN EFFECT A PONZI SCHEME SAYS SCOTT W MULLER A PARTNER AT DAVIS POLK & WARDWELL A NEW YORK LAW FIRM REPRESENTING PRUDENTIAL SECURITIES THE BIG BROKERAGE FIRM CONCLUDED THE BORROWING WAS APPROPRIATE BECAUSE IT WAS FOR CAPITAL ITEMS AS FOR MR PITTMAN'S CONCERN MR MULLER SAYS I VIEW THAT DOCUMENT AND THAT SENTENCE AS BEING GOOD FOR US THAT'S BECAUSE IT SHOWED PRUDENTIAL EXECUTIVES WERE CONCERNED ABOUT THE DISTRIBUTIONS AND FOLLOWED UP ON THOSE CONCERNS MR MULLER SAYS THE DISCLOSURES COME AMID CONTROVERSY OVER THE BROKERAGE FIRM'S PROPOSAL TO SETTLE CLASSACTION LITIGATION WITH INVESTORS WHO LOST MONEY IN THE ENERGY PARTNERSHIPS THE FEDERAL JUDGE IN NEW ORLEANS MARCEL LIVAUDAIS JR SAID IN FEBRUARY THAT HE HAD SERIOUS RESERVATIONS ABOUT THE FAIRNESS OF PRUDENTIAL'S 100 MILLION SETTLEMENT PROPOSAL THE JUDGE SAID MORE INFORMATION WAS NECESSARY BEFORE HE COULD RULE ON THE PROPOSED SETTLEMENT THE NEWLY PUBLIC DOCUMENTS ARE VERY FAVORABLE FOR INVESTORS ASSERTS STEPHEN MURRAY A LAWYER IN NEW ORLEANS REPRESENTING ROUGHLY 2000 INVESTORS WITH CLAIMS AGAINST PRUDENTIAL SECURITIES WE THINK WE CAN NOW DEMONSTRATE THE VULNERABLE POSITION PRUDENTIAL SECURITIES IS IN NONSENSE SAYS PRUDENTIAL SECURITIES ALL OF THE DOCUMENTS PLUS THOUSANDS OF OTHERS WERE FULLY FACTORED IN THE CURRENT SETTLEMENT PROPOSAL SAYS DAVIS POLK'S MR MULLER THE DISCLOSURES ARE NOT GOING TO CHANGE OUR VIEW OF WHAT IS AN APPROPRIATE SETTLEMENT AMOUNT IN ANY WAY PRUDENTIAL SECURITIES EXECUTIVES SAY INVESTORS IN THE ENERGYPARTNERSHIP CASE ALREADY HAVE RECEIVED DISTRIBUTIONS OF ABOUT 636 MILLION OR 43 OF THEIR ORIGINAL INVESTMENT AS REPORTED THE LEGAL TAB FOR PRUDENTIAL SECURITIES' SOURED LIMITEDPARTNERSHIP BUSINESS IS APPROACHING 500 MILLION PRUDENTIAL SECURITIES HAS SET ASIDE A TOTAL OF NEARLY 400 MILLION IN RESERVES IN THE PAST THREE YEARS TO DEAL WITH LAWSUITS BY DISGRUNTLED LIMITEDPARTNERSHIP INVESTORS AMONG OTHER THINGS THIS YEAR PRUDENTIAL SECURITIES PLANS TO SET ASIDE AN ADDITIONAL 80 MILLION TO 100 MILLION IN RESERVES PEOPLE FAMILIAR WITH THE FIRM SAY PRUDENTIAL SECURITIES CURRENTLY IS IN THE INITIAL STAGES OF TALKS WITH THE SECURITIES AND EXCHANGE COMMISSION TO SETTLE CHARGES THAT IT IMPROPERLY SOLD LIMITED PARTNERSHIPS IN THE 1980S PEOPLE FAMILIAR WITH THE DISCUSSIONS SAID LAST WEEK PRUDENTIAL SECURITIES SPURNED A TENDER OFFER FOR ITS ENERGY PARTNERSHIPS FROM A TULSA OKLA OILMAN AND SAID IT WILL SEEK BETTER OFFERS THE OFFER FOR INVESTORS' SOURED HOLDINGS IN 31 OF 35 DISPUTED LIMITED PARTNERSHIPS IS SAID TO BE VALUED AT ABOUT 175 MILLION MEANWHILE THE NEWLY DISCLOSED DOCUMENTS ALSO REVEAL THAT PARENT PRUDENTIAL INSURANCE STOPPED INVESTING IN THE PARTNERSHIPS AFTER THE FIRST THREE SERIES OF ENERGY INVESTMENTS IN THOSE THREE PRUDENTIAL INSURANCE HAD PUT UP 10 OF THE PARTNERSHIP PROCEEDS PRUDENTIAL INSURANCE WHOSE INVESTMENT PRESENCE WAS A MAJOR MARKETING TOOL IN THE EARLY PARTNERSHIPS SAYS IT STOPPED INVESTING PARTLY BECAUSE OF STATE REGULATORY CONCERNS YET A DOCUMENT FROM MATTHEW CHANIN A SENIOR PRUDENTIAL INSURANCE EXECUTIVE SAID WE OFFERED PRUDENTIALBACHE THE SCALEBACK TO 2 THEY DECLINED ON THE GROUNDS THAT THEY HAD AN EASIER STORY TO TELL IF WE DROPPED OUT ALTOGETHER MR CHANIN ADDED THEY FELT THAT A CUTBACK LOOKED LIKE A NEGATIVE VOTE ON THE PROGRAM A COMPLETE CESSATION COULD BE ASCRIBED TO SHIFTING INVESTMENT POLICY BY PRU WE WENT ALONG BUT MR MULLER THE LAWYER REPRESENTING PRUDENTIAL SECURITIES SAYS PRUDENTIAL INSURANCE'S DECISION TO PULL OUT HAD ABSOLUTELY NOTHING TO DO WITH ANY PERCEIVED WEAKNESS OR PROBLEM IN THE INCOME PARTNERSHIPS INDEED MR MULLER SAYS PRUDENTIAL INSURANCE'S DECISION STEMMED FROM ITS DECISION TO INVEST IN RISKIER INVESTMENTS IN A BID TO SNARE HIGHER YIELDS AMID EXPECTATIONS IN THE MID1980S THAT ENERGY PRICES WOULD REBOUND THE PRUDENTIALBACHE ENERGYINCOME PARTNERSHIPS WERE NOT RISKY ENOUGH FOR PRU INSURANCE FOR ITS OIL AND GAS INVESTMENTS MR MULLER SAYS 9304080045 930408 BUSINESS BRIEF ROCKWELL INTERNATIONAL CORP FIRM UNITES 2 MEXICAN UNITS OF ITS ALLENBRADLEY CO ROCKWELL INTERNATIONAL CORP SAID IT CONSOLIDATED TWO MEXICAN SUBSIDIARIES OF ITS ALLENBRADLEY CO UNIT THE COMPANY NAMED BOB BECKER AS VICE PRESIDENT AND GENERAL MANAGER OF THE NEWLY CREATED ALLENBRADLEY DE MEXICO SA MR BECKER HAD BEEN DISTRICT SALES MANAGER AT ALLENBRADLEY'S DENVER OFFICE THE TWO ENTITIES COMBINED ELECTRICA ALLENBRADLEY SA AND CONTROLMATIC ALLENBRADLEY SA OF MEXICO CITY WERE BOTH JOINT VENTURES WHOSE SHARES OUTSTANDING ROCKWELL PURCHASED OVER THE PAST YEAR THE COMBINED COMPANIES WILL BE RESPONSIBLE FOR SALES AND SUPPORT OF ALLENBRADLEY'S AUTOMATION CONTROL AND COMMUNICATIONS PRODUCTS POWER PRODUCTS AND MOTOR CONTROL CENTERS SEAL BEACH CALIFBASED ROCKWELL HAS INTERESTS IN THE ELECTRONICS AEROSPACE AUTOMOTIVE AND GRAPHICS BUSINESSES 9304080044 930408 DIVIDEND NEWS SOVEREIGN BANCORP SOVEREIGN BANCORP A WYOMISSING PA BANK HOLDING COMPANY DECLARED A 6FOR5 STOCK SPLIT TO BE DISTRIBUTED MAY 17 TO SHARES OF RECORD APRIL 30 AFTER THE SPLIT THE COMPANY WILL HAVE ABOUT 262 MILLION SHARES OUTSTANDING 9304080043 930408 BUSINESS BRIEF MACANDREWS'S REVLON WILL SPLIT ITS SALES MERCHANDISING LINES NEW YORK REVLON INC SAID IT IS ELIMINATING SOME OF ITS US SALES FORCE IN A MOVE THAT SPLITS ITS SALES AND MERCHANDISING OPERATIONS THE SIZE OF THE CUTBACK WASN'T DISCLOSED THE COSMETICS GIANT A UNIT OF RONALD PERELMAN'S MACANDREWS & FORBES HOLDINGS INC SAID IT IS CUTTING BACK ITS NATIONAL SALES STAFF OF 800 WHILE CREATING A SEPARATE GROUP DEDICATED TO MERCHANDISING TO HELP SMALLER RETAILERS MANAGE THEIR SHELF DISPLAYS AND QUICKLY IDENTIFY OUTOFSTOCK ITEMS PREVIOUSLY REVLON'S SALES STAFF HAD PERFORMED BOTH FUNCTIONS WE BELIEVE THIS WILL INCREASE THE LEVEL OF SERVICE THE RETAILER RECEIVES AND GIVE THEM MUCH GREATER COVERAGE SAID A REVLON SPOKESWOMAN WHO NOTED THAT MERCHANDISING CAN INCREASE A STORE'S SALES BY 25 SHE DECLINED TO SPECIFY HOW MANY SALES JOBS WILL BE ELIMINATED BUT NOTED THAT THE TOTAL SIZE OF THE SALES AND MERCHANDISING FORCE WILL NOT CHANGE DRASTICALLY COSMETICSINDUSTRY OBSERVERS SAY REVLON'S LATEST MOVE PROBABLY HAS MORE TO DO WITH COSTCUTTING THAN ANY MAJOR FLAWS IN ITS SALES OPERATIONS REVLON ENJOYS FAIRLY STRONG RELATIONSHIPS WITH ITS PRIMARY DRUGSTORE CLIENTELE STORES WORK VERY CLOSELY WITH REVLONMORE SO THAN OTHER MANUFACTURERS SAYS ALLAN MOTTUS A COSMETICSINDUSTRY CONSULTANT THERE WAS LESS THAN A CRYING NEED FOR MERCHANDISERS HOWEVER HE SPECULATES THAT REVLON COULD REAP SOME SAVINGS BY REPLACING HIGHLY PAID SALES STAFFERS WITH LESS EXPENSIVE MERCHANDISING PERSONNEL THE REVLON SPOKESWOMAN SAID THE STAFF CHANGES WOULD SAVE MONEY SINCE MANY MERCHANDISE STAFFERS WILL BE WORKING PARTTIME BUT SHE SAID COSTCUTTING WASN'T THE PRIMARY GOAL 9304080042 930408 UNITED AIRLINES REVISES CONTRACT WITH BOEING CARRIER IN MOVE TO REDUCE SPENDING WILL CONVERT ITS ORDERS INTO OPTIONS BY BRETT PULLEY AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL UNITED AIRLINES IN A MOVE THAT WILL HELP TRIM ITS CAPITAL SPENDING BY 55 BILLION OVER THE NEXT THREE YEARS REACHED AN AGREEMENT WITH BOEING CO TO SIGNIFICANTLY ALTER ITS SCHEDULED AIRCRAFT DELIVERIES BY SWITCHING FIRM ORDERS TO OPTIONS UNITED A UNIT OF UAL CORP CHICAGO WILL LIKELY ENHANCE ITS CREDIT RATING WHILE GAINING THE ABILITY TO WALK AWAY COMPLETELY FROM THE ORDERS AT LESS OF A COST TYPICALLY FIRM ORDERS REQUIRE LARGER NONREFUNDABLE DEPOSITS AND ARE COSTLIER IF CANCELLED CLOSE TO DELIVERY DATES FACED WITH HUGE LOSSES AND THE NEED TO CONTAIN ITS COST STRUCTURE UNITED LATE LAST YEAR BEGAN DISCUSSIONS WITH BOEING SEARCHING FOR RELIEF FROM SPENDING OBLIGATIONS IN RECENT WEEKS TOPLEVEL EXECUTIVES OF BOTH COMPANIES HAD EXCHANGED VARIOUS VERSIONS OF NEWS RELEASES AS UNITED LOOKED TO PROMOTE ITS CAPITALSPENDING CUTS AND BOEING SOUGHT TO MINIMIZE DAMAGE TO THE PERCEPTION THAT MORE OF ITS BUSINESS IS SLIPPING AWAY ACCORDING TO PEOPLE FAMILIAR WITH THE AGREEMENT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE UAL SHARES ADVANCED SHARPLY ALONG WITH THE STOCKS OF OTHER AIRLINES IN RESPONSE TO RECENT REPORTS OF INDUSTRYWIDE COSTCUTTING MEASURES IMPROVED TRAFFIC AND NEWS THAT A SPECIAL COMMISSION APPOINTED BY PRESIDENT CLINTON WILL STUDY WAYS TO HELP THE INDUSTRY UAL SHARES JUMPED 9875 TO 137 WHILE BOEING SHARES ROSE 1125 TO 3625 UAL ANNOUNCED THE AGREEMENT WITH BOEING SHORTLY BEFORE THE CLOSE OF TRADING ACCORDING TO THE AGREEMENT THE 49 FIRM ORDERS PREVIOUSLY SCHEDULED FOR DELIVERY OVER THE NEXT THREE YEARS HAVE BEEN RESCHEDULED AS OPTIONS BETWEEN 1996 AND 1999 THOSE AIRCRAFT ARE 31 737S EIGHT 747400S TWO 757200S AND EIGHT 767300ERS THE AGREEMENT BETWEEN THE TWO COMPANIES CALLS FOR UNITED TO TAKE DELIVERY OF THE AIRCRAFT BEFORE THE YEAR 2000 OR FORFEIT ITS DEPOSITS STEPHEN WOLF UNITED CHAIRMAN AND CHIEF EXECUTIVE OFFICER WARNED THAT ANY DECISION TO REINSTATE THESE ORDERS WILL BE BASED ON UNITED'S ABILITY TO ACHIEVE APPROPRIATE LEVELS OF PROFITABILITY ADDITIONALLY AS EXPECTED BEGINNING IN AUGUST UNITED WILL NOT TAKE DELIVERY OF AN ADDITIONAL NEW PLANE UNTIL BOEING INTRODUCES ITS 777 AIRCRAFT UNITED AND BOEING AGREED TO MODIFY THE CARRIER'S DELIVERIES FOR THE 777 THE CARRIER HAD ORDERED 34 OF THE NEW TWINENGINE JETS FOR DELIVERY BEGINNING IN 1995 UNDER THE NEW AGREEMENT FOUR A MODEL 777S DUE IN 1996 WILL BE CONVERTED TO LONGERRANGE B MODELS TWO WILL BE RESET FOR DELIVERY IN 1998 AND TWO FOR DELIVERY IN 1999 THE B MODEL 777 BECOMES AVAILABLE IN DECEMBER 1996 UNITED'S TOTAL CAPITAL SPENDING ON AIRCRAFT ALONE DURING THE NEXT THREE YEARS WILL DROP TO 32 BILLION FROM 66 BILLION DURING THE SAME PERIOD THE AIRLINE WILL CUT NONAIRCRAFT EXPENSES TO 35 BILLION FROM 56 BILLION 9304080041 930408 EQUITABLE RESOURCES DRILLING PITTSBURGH EQUITABLE RESOURCES INC SAID RESULTS OF A WELL TEST IN THE SOUTHERN LLANOS BASIN IN COLOMBIA SOUTH AMERICA FOUND OIL IN INSUFFICIENT QUANTITIES FOR COMMERCIAL PRODUCTION THE WELL WAS DRILLED BY EQUITABLE'S COLOMBIA JOINT VENTURE ON EACH OF TWO CONTRACT AREAS IN THE SOUTHERN PART OF THE BASIN THE COMPANY SAID THE JOINT VENTURE IS STUDYING DATA FROM ITS OTHER CONTRACT AREA IN THE NORTHERN PART OF THE BASIN DRILLING IS EXPECTED TO BEGIN THERE IN 1994 EQUITABLE WHICH IS INVOLVED IN THE EXPLORATION PRODUCTION AND TRANSMISSION OF NATURAL GAS AND OIL OWNS AN APPROXIMATE 25 WORKING INTEREST IN THE THREE COLOMBIAN PROPERTIES THROUGH ITS ANDEX ENERGY INC UNIT 9304080040 930408 BUSINESS BRIEF FORD MOTOR CO REDESIGNED MUSTANG FOR '94 GOES TO DEALERS IN DECEMBER FORD MOTOR CO SAID A RESTYLED VERSION OF ITS MUSTANG SPORTS CAR WILL APPEAR IN DEALER SHOWROOMS DEC 27 THE 1994 MODEL MARKS THE FIRST MAJOR RESTYLING OF THE MUSTANG SINCE 1979 THE DEARBORN MICH COMPANY SAID THE NEW MUSTANG WILL HAVE A MORE POWERFUL 38LITER V6 BASE ENGINE TO REPLACE THE CURRENT MUSTANG'S 23LITER BASE ENGINE THE MUSTANG'S GT VERSION WILL CONTINUE TO FEATURE A 50LITER V8 ENGINE THE COMPANY SAID THE MUSTANG WILL CONTINUE TO BE BUILT AT ITS DEARBORN ASSEMBLY PLANT WITH PRODUCTION TO BEGIN OCT 4 SINCE THE MUSTANG'S INTRODUCTION ON APRIL 17 1964 FORD HAS SOLD 61 MILLION UNITS 9304080039 930408 BUSINESS BRIEF POLICY MANAGEMENT SYSTEMS CORP COMPANY PLANS BUYBACK AFTER PLUNGE IN STOCK PRICE POLICY MANAGEMENT SYSTEMS CORP AFTER SEEING ITS SHARE PRICE CUT ALMOST IN HALF TUESDAY SAID IT PLANS TO BUY BACK SOME OF ITS COMMON STOCK LATE MONDAY THE COLUMBIA SC COMPANY WHICH PROVIDES SOFTWARE AND RELATED SERVICES TO THE INSURANCE INDUSTRY DISCLOSED THAT FIRSTQUARTER RESULTS HAD FALLEN BELOW EXPECTATIONS BECAUSE SEVERAL CONTRACTS DIDN'T CLOSE AS ANTICIPATED THAT NEWS DROVE DOWN THE PRICE OF THE COMPANY'S STOCK TO 47625 A SHARE OFF 3625 IN HEAVY TRADING TUESDAY POLICY MANAGEMENT SAID IT DECIDED TO ACTIVATE A PREVIOUSLY ANNOUNCED STOCK REPURCHASE PROGRAM THAT PROVIDES FOR THE PERIODIC PURCHASE OF AS MANY AS 970668 SHARES THE COMPANY SAID THERE WAS NO PLAN TO ACQUIRE A SET NUMBER OF SHARES IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY POLICY MANAGEMENT GAINED BACK SOME GROUND CLOSING AT 4975 A SHARE UP 2125 9304080038 930408 BUSINESS BRIEF HEINEKEN NV SHARE PRICE DECLINES 36 ON CHIEF'S PROFIT WARNING SHARES OF HEINEKEN NV FELL 36 YESTERDAY AS GERARD VAN SCHAIK CHAIRMAN OF THE DUTCH BREWER WARNED AGAINST TOO HIGH EXPECTATIONS AS REGARDS TO SHORTTERM PROFITS AT A NEWS CONFERENCE OFFERING FURTHER DETAILS OF PREVIOUSLY ANNOUNCED 1992 RESULTS HEINEKEN SAID PRETAX OPERATING PROFIT IN 1992 EDGED UP TO 7332 MILLION GUILDERS 4047 MILLION FROM THE YEAREARLIER 7299 MILLION GUILDERS THE DISCLOSURE WAS A SURPRISE BECAUSE IN MARCH THE AMSTERDAMBASED BREWER REPORTED A 27 RISE IN NET INCOME FOR THE YEAR IN ITS MORE DETAILED REPORT YESTERDAY HEINEKEN SAID ITS ABILITY TO BOOST NET LAST YEAR TRACED BACK NOT ONLY TO A PREVIOUSLY DISCLOSED 101 MILLIONGUILDER ONETIME GAIN ON THE SALE OF LAND IN SINGAPORE BUT ALSO TO A SHARP DROP IN NET INTEREST EXPENSES TO 345 MILLION GUILDERS FROM 814 MILLION GUILDERS IN TRADING ON THE AMSTERDAM EXCHANGE HEINEKEN FELL TO 190 GUILDERS FROM 197 GUILDERS 9304080036 930408 BUSINESS BRIEF PUBLIC SERVICE CO OF NEW MEXICO PAYMENT OF 39 MILLION MADE TO END NATURAL GAS DISPUTE PUBLIC SERVICE CO OF NEW MEXICO SAID IT PAID 39 MILLION TO SETTLE LITIGATION WITH THREE NATURAL GAS PRODUCERS THE ALBUQUERQUE UTILITY SETTLED THE TAKE OR PAY LAWSUITS WITH AMOCO CORP'S AMOCO PRODUCTION CO CONOCO INC AND OTHER PRIVATE INDIVIDUALS A TAKEORPAY LAWSUIT INVOLVES DISPUTES OVER CONTRACTS WITH CERTAIN CLAUSES SPECIFYING THAT THE PURCHASER OF NATURAL GAS TAKE THE GAS AT A GIVEN PRICE OR PAY ANYWAY PUBLIC SERVICE CO SAID IT WILL RECOVER ABOUT 75 OF THE SETTLEMENT THROUGH RATES OVER A FIVEYEAR PERIOD IN ACCORDANCE WITH AN ORDER WITH THE NEW MEXICO PUBLIC SERVICE COMMISSION THE COMPANY EXPECTS TO BEGIN RECOVERING THE EXPENSES JUNE 1 9304080035 930408 INTERNATIONAL BRIEF VOLKSWAGEN AG AUDI POSTS 1STPERIOD LOSS ON SHARP DECLINE IN SALES SALES PLUNGED AT VOLKSWAGEN AG'S AUDI UNIT WHICH ALSO POSTED AN UNSPECIFIED LOSS FOR THE FIRST THREE MONTHS OF THE YEAR BUT AUDI CHAIRMAN FRANZJOSEF KORTUEM DESCRIBED AUDI AS A HEALTHY COMPANY THAT WOULD POST A PROFIT THIS YEAR AT A NEWS CONFERENCE IN MUNICH TO PRESENT RESULTS FOR 1992 MR KORTUEM ALSO SAID AUDI WILL DEVELOP AND PRODUCE A SPORTS CAR WITH FELLOW GERMAN CAR MAKER PORSCHE AG THAT WILL BE BASED ON AN AUDI DESIGN AUDI'S PROFIT FOR 1992 TUMBLED 54 TO 86 MILLION MARKS 533 MILLION FROM 185 MILLION MARKS THE YEAR BEFORE MR KORTUEM DECLINED TO SAY HOW LARGE AUDI'S FIRSTQUARTER LOSS WAS BUT AUDI'S PARENT LAST WEEK ANNOUNCED A NET LOSS OF 125 BILLION MARKS FOR THE SAME PERIOD VOLKSWAGEN ALSO MAKES AUTOMOBILES UNDER THE VOLKSWAGEN SKODA AND SEAT BRANDS 9304080034 930408 WHO'S NEWS NATIONAL CAR RENTAL ELECTS GM'S HOGLUND TO CHAIRMAN'S POST MINNEAPOLIS NATIONAL CAR RENTAL SYSTEM INC SAID WILLIAM E HOGLUND EXECUTIVE VICE PRESIDENT OF GENERAL MOTORS CORP HAS BEEN ELECTED CHAIRMAN OF THE RENTAL CAR COMPANY GM OWNS 815 OF NATIONAL AND IS TRYING TO RESTORE IT TO PROFITABILITY WHILE LOOKING FOR A PARTNER TO BUY ALL OR PART OF ITS NATIONAL STAKE IN LAST YEAR'S FOURTH QUARTER THE AUTO MAKER TOOK A 744 MILLION CHARGE RELATED TO LOSSES AND THE WRITEOFF OF GOODWILL AT NATIONAL A GM SPOKESMAN WOULDN'T COMMENT ON ITS EFFORTS TO SELL NATIONAL MR HOGLUND 58 YEARS OLD SUCCEEDS THOMAS N MURPHY 61 YEARS OLD A FORMER GM EXECUTIVE WHO IS RETIRING FROM NATIONAL MR HOGLUND WILL CONTINUE WITH HIS CURRENT RESPONSIBILITIES AT GM RESTRUCTURING SPECIALIST JAY ALIX WHO WAS HIRED IN JANUARY AS CHIEF TURNAROUND OFFICER WAS NAMED CHIEF EXECUTIVE OFFICER ANOTHER POST FORMERLY HELD BY MR MURPHY MR MURPHY JOINED NATIONAL IN 1992 ON SPECIAL ASSIGNMENT FOR GM HE RAN NATIONAL FOR MOST OF HIS 14 MONTHS THERE BUT WAS FORMALLY GIVEN THE TITLES OF CHIEF EXECUTIVE AND CHAIRMAN IN JANUARY SAID ROBERT J MCKENNA NATIONAL'S PRESIDENT AND CHIEF OPERATING OFFICER 9304080033 930408 REVIEW & OUTLOOK EDITORIAL ASIDES TWO FOR THE ROAD SOMEBODY BETTER CHECK THE ALIGNMENT OF THE MOON AND PLANETS SOME POWERFUL FORCE MUST HAVE BEEN AT WORK YESTERDAY HOW ELSE EXPLAIN THAT TWO OF THE COUNTRY'S MOST POWERFUL POLITICAL PERSONALITIES AND EGOS NEW YORK GOVERNOR MARIO CUOMO AND JESSE JACKSON BOTH TOOK THEMSELVES OUT OF THE RUNNING FOR PRESTIGE APPOINTMENTS GOVERNOR CUOMO WITHDREW HIS NAME FROM THE SHORT LIST OF PRESIDENT CLINTON'S SUPREME COURT APPOINTMENTS AND THE REV JACKSON ANNOUNCED HE'S OUT OF THE RUNNING AS NAACP EXECUTIVE DIRECTOR A WORLD ELSEWHERE 9304080032 930408 FIRST BOSTON SEES DEFECTIONS TIED TO PAY BY LAURIE P COHEN AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL ANGERED BY COMPENSATION THEY SAY IS SHARPLY BELOW THAT PAID BY COMPETITORS DOZENS OF TRADERS AND INVESTMENT BANKERS HAVE DEFECTED FROM CS FIRST BOSTON GROUP THIS YEAR AMONG THOSE WHO HAVE LEFT MORE THAN 25 MEMBERS OF FIRST BOSTON'S BOND AND MORTGAGEBACKED SECURITIES GROUPS INCLUDING THE HEADS OF US BOND OPERATIONS AND BOND RESEARCH MOST OF THE PROFITABLE ENERGY INVESTMENTBANKING GROUP NINE OF WHOM JUMPED TO MERRILL LYNCH & CO AND A COHEAD OF PRIVATE PLACEMENTS PUBLICLY FIRST BOSTON DOWNPLAYS THE DEFECTIONS I DON'T THINK IT'S THAT OVERWHELMING SAYS ARCHIBALD COX JR FIRST BOSTON'S CHIEF EXECUTIVE OFFICER AND PRESIDENT WE'VE LOST SOME PEOPLE WE'RE SORRY TO LOSE SOME WE'RE LESS SORRY TO LOSE AND SOME WE WANTED TO LOSE HE ADDS OUR COMPETITORS ARE TRYING TO MAKE THE MOST OF OUR PEOPLE LEAVING YET PRIVATELY MANY FIRST BOSTON EXECUTIVES SAY THE EXODUS HAS COST THE FIRM SOME OF ITS MOST TALENTED INVESTMENT BANKERS AND TRADERS AND HAS HOBBLED ITS ABILITY TO RECRUIT NEW ONES WHILE MR COX DENIES THE DEPARTURES ARE AFFECTING FIRST BOSTON'S ABILITY TO RECRUIT BANKERS HE ACKNOWLEDGES THAT THE INVESTMENT BANK HASN'T HIRED A SINGLE MANAGING DIRECTOR IN ANY OF THE AFFECTED AREAS SINCE THE BEGINNING OF THE YEAR CLEARLY FIRST BOSTON HAS HAD A SIGNIFICANT NUMBER OF DEFECTIONS THAT WILL CAUSE IT TO BEGIN ADDRESSING MANAGEMENT ISSUES AND COMPENSATION SAYS JOAN ZIMMERMAN AN EXECUTIVE RECRUITER WITH GZ STEPHENS SAYS HARVARD BUSINESS SCHOOL PROF SAMUEL HAYES FIRST BOSTON IS HAVING TO DO FANCY FOOTWORK TO HOLD PEOPLE RIGHT NOW THE ANGER OVER PAY ERUPTED AT A DINNER LAST MONTH FOR FIRST BOSTON SENIOR MANAGING DIRECTORS CALLED BY TOP EXECUTIVES DAYS AFTER THE ENERGY TEAM DEFECTED AT THE DINNER AT MANHATTAN'S LINKS CLUB SOME DIRECTORS YELLED AT MR COX AND JACK HENNESSEY FIRST BOSTON'S CHAIRMAN AMID COMPLAINTS THAT PROMISES BY MESSRS COX AND HENNESSEY TO RAISE THEIR COMPENSATION LAST YEAR NEVER MATERIALIZED ACCORDING TO SOME WHO ATTENDED THE DINNER MANY FIRST BOSTON MANAGING DIRECTORS GRIPED THAT THEY WERE PAID MORE THAN 25 LESS THAN THEIR PEERS AT OTHER WALL STREET FIRMS IN 1992 MANAGING DIRECTORS IN FIRST BOSTON'S MERGERANDACQUISITION DEPARTMENT EARNED AN AVERAGE OF 800000 LAST YEAR ACCORDING TO A PERSON FAMILIAR WITH THE FIRM ONETHIRD OF MANAGING DIRECTORS' BONUSES CAME IN THE FORM OF IOUS WHICH WILL TURN INTO CASH ONLY IF FIRST BOSTON SUCCEEDS IN SELLING CERTAIN MERCHANTBANKING ASSETS INCLUDING JERRICO INC A RESTAURANT HOLDING COMPANY AND A SUPERMARKET CHAIN IN PUERTO RICO WE'RE NOT GOING TO PAY MANAGING DIRECTORS UNTIL THE MONEY IS IN THE BANK MR COX SAYS OF THE ARRANGEMENT LAST YEAR WAS A HIGHLY PROFITABLE ONE FOR NEW YORKBASED CS FIRST BOSTON WHICH EARNED 175 MILLION BUT FIRST BOSTON HAS 1 BILLION IN CAPITAL LESS THAN ITS BIG COMPETITORS ITS 1992 PROFITS TRAILED MORGAN STANLEY GROUP INC'S 5105 MILLION SALOMON INC'S 550 MILLION AND MERRILL LYNCH'S 894 MILLION IN 1988 WHEN FIRST BOSTON AND ITS EUROPEAN AFFILIATE MERGED TO CREATE CS FIRST BOSTON THE FIRM SAID IT SOUGHT TO BECOME A TRULY GLOBAL INVESTMENT BANK WITH CLOSELY LINKED UNITS IN NEW YORK LONDON AND TOKYO BUT COORDINATION AMONG THE UNITS HAS NOT ALWAYS BEEN SMOOTH AND PAY ISSUES HAVE EXACERBATED TENSIONS INVESTMENT BANKERS SAY THIS YEAR NEW YORK BANKERS WERE IRATE BECAUSE ALTHOUGH THEIR OFFICE HAD HUGE PROFITS THE FIRM'S BOTTOM LINE AND THEIR COMPENSATION WAS DRAGGED DOWN BY LOSSES ON LONDON BOND TRADES LATE IN THE YEAR CS FIRST BOSTON IS A UNIT OF CS HOLDING WHICH ALSO OWNS THE GIANT SWISS BANK CREDIT SUISSE THIS ISN'T THE FIRST TIME FIRST BOSTON HAS BEEN WRACKED BY MANAGEMENT PROBLEMS AND DEFECTIONS IN 1988 THE CHIEFS OF ITS MERGERS AND ACQUISITIONS GROUP JOSEPH PERELLA AND BRUCE WASSERSTEIN LEFT TO FORM THEIR OWN FIRM TAKING MORE THAN A DOZEN STAFFERS WITH THEM A YEAR LATER SEVERAL SENIOR EXECUTIVES LEFT IN THE WAKE OF DISCLOSURES THAT FIRST BOSTON HAD TO WRITE OFF SOME 400 MILLION IN SOURED INVESTMENTS BUT THIS TIME MANY OF THOSE WHO HAVE LEFT WERE FIRST BOSTON VETERANS WHO HAD WEATHERED EARLIER STORMS MR COX SAYS MORE PEOPLE RESIGNED THIS YEAR THAN IN EACH OF THE TWO PREVIOUS YEARS IN DECEMBER FIRST BOSTON LIKE OTHER WALL STREET FIRMS RESPONDED TO THE THREAT OF HIGHER FEDERAL INCOME TAXES THIS YEAR BY ACCELERATING 1992 BONUS PAYMENTS DOLING OUT HALF THE BONUSES IN DECEMBER BUT UNLIKE MOST OTHERS FIRST BOSTON CHARGED ITS EMPLOYEES INTEREST ON THE EARLY PAYMENTS A HIGHLY UNPOPULAR MOVE THE 1992 COMPENSATION ARRANGEMENT WAS JUST THE LATEST BLOW SAY FIRST BOSTON INSIDERS AND THOSE WHO HAVE DEPARTED IN 1988 AS FIRST BOSTON WENT PRIVATE MANY MANAGING DIRECTORS BORROWED MONEY TO PURCHASE CS FIRST BOSTON'S CLOSELY HELD STOCK OFFERED TO THEM AS AN INCENTIVE AT AN ESTIMATED BOOK VALUE OF 49 A SHARE BUT TWO YEARS LATER THE STOCK HAD SUNK TO 15 THE STOCK NOW HOVERS AT ABOUT 20 A SHARE IN 1990 A THENAILING FIRST BOSTON PAID SOME OF ITS EXECUTIVES WITH STOCK WHICH THEY WERE REQUIRED TO SELL BACK TO THE FIRM IF THEY LEFT DURING THE NEXT TWO YEARS AMONG THE MANAGING DIRECTORS WHO LEFT AFTER COLLECTING THEIR 1992 BONUSES WERE KEVIN NEWMAN FIRST BOSTON'S COHEAD OF PRIVATE PLACEMENTS PETER JACHYM AND DOUG BROWN TWO OF THE FIRM'S INSURANCE INVESTMENT BANKERS THOMAS SEXTON HEAD OF US BOND OPERATIONS WILLIAM WEAVER VICE CHAIRMAN OF FIRST BOSTON'S INVESTMENT BANKING COMMITTEE AND GREG PARSEGHIAN HEAD OF FIXED INCOME RESEARCH DOZENS OF DIRECTORS AND VICE PRESIDENTS HAVE ALSO LEFT FOR MORE MONEY AND BETTER OPPORTUNITIES BUT THE MASS DEPARTURE OF FIRST BOSTON'S ENERGY GROUP AMONG THEM RICHARD GORDON HEAD OF FIRST BOSTON'S HOUSTON OFFICE HOUSTON INVESTMENT BANKERS SAM DODSON AND SCHUYLER TILNEY AND NEW YORK BANKER ARTHUR REICHSTETTER APPEARED TO HURT THE MOST SAYS MR COX PARTS OF THE ENERGY GROUP WERE A SIGNIFICANT LOSS HE SAYS HE BELIEVES THE GROUP LEFT BECAUSE MERRILL IS THROWING MONEY AT THEM INDEED SOME MEMBERS OF THE ENERGY GROUP NEARLY DOUBLED THEIR SALARIES BY GOING TO WORK FOR MERRILL EXECUTIVES SAY NONE WOULD COMMENT ANOTHER EXECUTIVE MR COX SAYS HE WOULD HAVE LIKED TO HAVE KEPT WAS WILLIAM REID THE MANAGING DIRECTOR IN CHARGE OF FIRST BOSTON'S JUNKBOND DEPARTMENT WHO RESIGNED LAST MONTH TO JOIN MORGAN STANLEY MR REID DECLINES TO COMMENT ON HIS DEPARTURE WHICH CAME THREE DAYS BEFORE A FIRST BOSTONSPONSORED JUNKBOND CONFERENCE WAS TO BEGIN EXECUTIVES SAY MR REID LEFT BECAUSE HE DIDN'T THINK HE WAS BEING PAID COMPETITIVELY IT REMAINS TO BE SEEN HOW THE DEPARTURES WILL AFFECT FIRST BOSTON MR COX SAYS THE FIRST QUARTER OF 1993 HAS BEEN THE BEST FIRST QUARTER EVER FOR THE FIRM THOUGH RESULTS HAVEN'T BEEN DISCLOSED ALTHOUGH MR COX SAYS THE FIRM HAS LOST AT LEAST ONE ENERGY CLIENT WHOM HE DECLINES TO IDENTIFY HE SAYS FIRST BOSTON SCORED A COUP LAST MONTH WHEN TENNECO THE HOUSTON ENERGY COMPANY RETAINED IT TO LEAD A 1 BILLION UNDERWRITING HE ADDS THAT FIRST BOSTON'S RANKINGS IN AREAS SUCH AS MUNICIPAL BONDS AND CORPORATE BOND AND STOCK UNDERWRITING HAVE RISEN THIS YEAR MR COX SAYS HE BELIEVES WE'RE DOING EVERYTHING WE CAN TO BUILD MORALE AND THERE WON'T BE MANY MORE DEPARTURES TO HELP ENSURE THAT FIRST BOSTON RECENTLY TOOK TWO MAJOR STEPS TOWARD DEALING WITH ITS COMPENSATION PROBLEM MANAGING DIRECTORS SAY MR COX PROMISED TO SET ASIDE A MINIMUM BONUS POOL FOR 1993 AND LAST YEAR FIRST BOSTON SET COMPENSATION IN NOVEMBER BUT 1993 COMPENSATION MR COX SAYS WILL BE DETERMINED NEXT JANUARY THAT WAY HE SAYS WE'LL KNOW BETTER WHAT THE REST OF THE STREET IS DOING 9304080031 930408 TECHNOLOGY BRIEF SILICON GRAPHICS INC INDUSTRIAL LIGHT & MAGIC SETS SPECIAL EFFECTS PARTNERSHIP MOVIE MAKER GEORGE LUCAS'S CLOSELY HELD INDUSTRIAL LIGHT & MAGIC AND COMPUTER MAKER SILICON GRAPHICS INC HAVE AGREED TO POOL RESOURCES IN THE LUCRATIVE FIELD OF VISUAL EFFECTS AND FILM PRODUCTION SILICON GRAPHICS SUPPLIES COMPUTERS USED BY SPECIAL EFFECTS COMPANIES TO MANIPULATE IMAGES INDUSTRIAL LIGHT & MAGIC HAS WON AWARDS FOR USING COMPUTERS TO CREATE FANTASTIC CREATURES IN MOVIES SUCH AS TERMINATOR 2 AND THE ABYSS TERMS OF THE PARTNERSHIP WEREN'T DISCLOSED AND THE COMPANIES CONCEDED THAT THE DEAL SIMPLY EXTENDS AN EXISTING CUSTOMERSUPPLIER RELATIONSHIP BUT EDWARD R MCCRACKEN CHIEF EXECUTIVE OFFICER OF SILICON GRAPHICS SAID A CLOSER COLLABORATION WITH MR LUCAS'S COMPANY IS CRUCIAL TO LOWERING THE COST AND INCREASING THE SOPHISTICATION OF COMPUTERCREATED IMAGES MR LUCAS SAID THAT THE AGREEMENT WILL HASTEN THE SHIFT AWAY FROM FILM TO FULLY COMPUTERIZED OR DIGITAL MEANS OF PRODUCING MOVIES AND TELEVISION SHOWS 9304080030 930408 MARKETING & MEDIA ADVERTISING SWEETS FOR THE NESTLE CONCOCTS CONFECTION ESPECIALLY FOR WOMEN BY KEVIN GOLDMAN YOU'VE COME A LONG WAY BABY FOR THIS FOUR MONTHS AFTER THE YEAR OF THE WOMAN CONCLUDED NESTLE IS INTRODUCING A CANDY BAR SPECIFICALLY TARGETED TO WOMEN CRITICS MAY SNICKER THAT NESTLE IS CREATING A MARKET THAT BASICALLY DOESN'T EXIST AND MOST LIKELY ISN'T EVEN NECESSARY A SWEET TOOTH IS A SWEET TOOTH IS A SWEET TOOTH AFTER ALL BUT NESTLE APPARENTLY SEES OPPORTUNITY FOR A SEX SPECIFIC PRODUCT IN THE GIANT CANDY MARKET WITH ANNUAL SALES OF ABOUT 16 BILLION EXCLUDING CHEWING AND BUBBLE GUM ACCORDING TO CONFECTIONER MAGAZINE BASED IN DALLAS THE 30SECOND COMMERCIAL PRODUCED BY WPP GROUP'S J WALTER THOMPSON IS SUPPOSED TO APPEAL STRICTLY TO WOMEN ALTHOUGH MEN WON'T RUSH OUT OF THE ROOM WHEN THE AD APPEARS IN THE SPOT A SVELTE YOUNG WOMAN CLAD ONLY IN A WHITE ROBE CARESSES THE CHOCOLATE AS A FEMALE VOICEOVER SAYS IMAGINE A TOTALLY NEW EXPERIENCE THE CONTENTS OF THE PRODUCT ARE DETAILED AS THE WOMAN WHO OBVIOUSLY DOESN'T MAKE A HABIT OF SWEETS FILLS A BATH WITH CHOCOLATE SHE STRIPS TO REVEAL A BARE SHOULDER AND PART OF HER BACK TO THE CAMERA IN THE NEXT SHOT SHE'S SUBMERGED IN THE MELTED CONCOCTION IT IS ACTUALLY LIQUID QUIK CHOCOLATE MILK ANOTHER NESTLE PRODUCT WHILE THE ANNOUNCER PURRS MELT INTO THE MOMENT THE ADVERTISING AND MARKETING EFFORT BY NESTLE USA BASED IN GLENDALE CALIF IS A NOVEL WAY TO GAIN A BIGGER FOOTHOLD IN THE CANDY BAR MARKET IN WHICH NESTLE RUNS THIRD BEHIND POWERHOUSES MARS AND HERSHEY THE TRUTH IS IF YOU WANT TO GET INTO THE MARKET YOU HAVE TO BRING SOMETHING NEW SAYS BARRY CROSSLAND NESTLE'S MARKETING DIRECTOR WE LOOKED AROUND AND FELT THERE ISN'T A COMPARABLE BRAND NESTLE IS PUTTING MONEY WHERE ITS MOUTH IS TO GET PEOPLE ER WOMEN TO START MUNCHING ON AERO ACCORDING TO MR CROSSLAND ANY NEW CANDY PRODUCT NEEDS A MARKETING AND ADVERTISING BUDGET OF 30 MILLION FOR AT LEAST THREE YEARS NESTLE A SUBSIDIARY OF NESTLE SA OF SWITZERLAND SAYS IT WILL SPEND THAT MUCH TO RAISE CONSUMER AWARENESS LAST WEEKEND IT GAVE AWAY 100000 SAMPLES AT THE MASSIVE MALL OF AMERICA OUTSIDE MINNEAPOLIS NESTLE IS ALSO TEAMING UP WITH A NATIONAL FLOWERDELIVERY COMPANY TO INCLUDE FREE AERO SAMPLES SPECIALLY SHAPED INTO LONG STICKS WITH BOUQUETS IT IS BY NO MEANS CERTAIN THAT NESTLE WILL MELT THE HEARTS OF CONSUMERS WITH THE AD CAMPAIGN MARKETING EXPERTS SAY IT'S TRICKY TO TARGET WOMEN THESE DAYS SAYS JUDITH LANGER WHO HEADS HER OWN MARKETING CONSULTING FIRM LANGER ASSOCIATES WOMEN ARE GRATEFUL TO BE INCLUDED IN ADVERTISING IN CATEGORIES THAT IGNORED THEM IN THE PAST LIKE AUTOMOTIVE I DON'T KNOW HOW MUCH A BREAKTHROUGH THE CANDY INDUSTRY IS AND WOMEN GET ANNOYED IF THE ADVERTISING IS CONDESCENDING MS LANGER DIDN'T VIEW THE ACTUAL AD BUT AFTER HEARING IT DESCRIBED SHE SAID THE COMMERCIAL WAS RISKY BECAUSE IT PORTRAYED THE WOMAN AS A SEX OBJECT AND JOSEPH G SMITH CHAIRMAN OF THE MARKETING CONSULTING FIRM OXTOBY SMITH SAYS THE STRATEGY OF INTRODUCING A CALORIELADEN CANDY A 14 OUNCE BAR PACKS 210 CALORIES IN A HEALTHCONSCIOUS ERA IS SO FARFETCHED THAT IT MIGHT ACTUALLY WORK HE EXPLAINS ALTHOUGH THE HEALTH CRAZE IS GENUINE HUMAN BEINGS CONTINUE TO LOVE SELFINDULGENCE SO NESTLE MAY HAVE DISCOVERED THE SECRET BONBON NESTLE MAY INDEED HAVE A WINNING FORMULA AT A TIME WHEN WOMEN ARE LOOKING FOR A BALANCE BETWEEN WORK AND INDULGENCE SAYS LILLIAN MARESCH PRESIDENT OF GENERATION INSIGHTS WHICH FOLLOWS THE TRENDS OF BABYBOOMERS NOW WHAT IS IT ABOUT AERO THAT WOULD MAKE IT APPEAL TO WOMEN OVER MEN FIRST OFF IS ITS SHAPE SAYS MR CROSSLAND WOMEN YOU SEE DON'T EAT CHOCOLATE BARS LIKE MEN ACCORDING TO NESTLE RESEARCH ALTHOUGH MEN CHOMP DOWN THE SWEETS IN A MATTER OF MINUTES THE BETTER TO START THAT SUGAR HIT WOMEN LIKE TO LINGER OVER A CANDY BAR NIBBLING IT BIT BY BIT THEY SAVOR IT SAYS MR CROSSLAND THEREFORE AERO IS DIVIDED INTO 12 BITESIZE PORTIONS ALSO THE DARK CHOCOLATE IS SURROUNDED BY A LIGHTER CHOCOLATE WITH AIR BUBBLES THAT MAKE FOR A SPONGY TEXTURE IT MELTS CLEANLY SAYS MR CROSSLAND ADDING THAT THIS IS ANOTHER ADVANTAGE WHEN TARGETING WOMEN ALSO AERO DOESN'T HAVE ANYTHING BUT CHOCOLATE IN IT MISSING ARE INGREDIENTS LIKE CARAMEL OR PEANUTS MEN LIKE THAT STUFF SAYS MR CROSSLAND WOMEN HE ALLEGES LIKE PURE CHOCOLATE BARS NESTLE ALREADY HAS A SUCCESSFUL GENERAL MARKET AERO PRODUCT IN THE UK ALTHOUGH IT IS A DIFFERENT FORMULATION THAN THE BAR BEING INTRODUCED IN THE US FOR NOW NESTLE IS TEST MARKETING AERO IN EIGHT STATES INCLUDING MINNESOTA TEXAS IOWA AND ARIZONA WITHIN A YEAR TV AUDIENCES AROUND THE COUNTRY SHOULD BE TREATED TO THE WOMANINTHETUB SPOT MR CROSSLAND PREDICTABLY SAYS THAT THE FEEDBACK IS POSITIVE WOMEN LIKE THE IDEA HE SAYS THAT THERE IS A CANDY BAR MADE JUST FOR THEM ONE SWEETTOOTH EXPERT WHO ISN'T BOTHERED BY THE SEXY ADVERTISING THINKS NESTLE HAS A GOOD CHANCE OF SUCCESS WITH THE PRODUCT IF SO SAYS LISBETH ECHEANDIA PUBLISHER OF CONFECTIONER MAGAZINE IT WOULD BE A NICE BOUNCE FOR NESTLE WHICH STUMBLED WITH ITS ALPINE CANDY BAR OF WHITE CHOCOLATE AND ALMONDS THERE ISN'T ANYTHING LIKE THIS ON THE MARKET SAYS MS ECHEANDIA IT'S A SMART CONCEPT AND GOODTASTING PRODUCT A CALIFORNIA GROUP FUNDED BY THE STATE'S ANTISMOKING PROGRAM HAS TARGETED THREE MAGAZINES PEOPLE GLAMOUR AND ESSENCE WITH AN EFFORT TO GET THEM TO STOP ACCEPTING TOBACCO ADVERTISING WOMEN AND GIRLS AGAINST TOBACCO BASED IN BERKELEY CALIF HOPES TO MOBILIZE THE PUBLICATIONS' SUBSCRIBERS AGAINST TOBACCO ADS BY PROMPTING THEM TO WRITE LETTERS TO THE PUBLICATIONS BUT THE GROUP ISN'T CALLING FOR A BOYCOTT INSTEAD IT HOPES TO WORK WITH THE MAGAZINES TO FIND ADVERTISERS TO REPLACE CIGARETTE COMPANIES WHO CURRENTLY APPEAR IN THE MAGAZINES' PAGES REGINA PENNACURRIE THE GROUP'S PROGRAM MANAGER SAID THE THREE TITLES WERE SELECTED BECAUSE THEY ARE ESPECIALLY POPULAR WITH GIRLS AGE 12 TO 19 EVEN THOUGH THEIR CORE AUDIENCE IS WOMEN AGE 18 TO 35 OFFICIALS COULDN'T BE REACHED AT GLAMOUR PUBLISHED BY ADVANCE PUBLICATIONS PEOPLE PUBLISHED BY TIME WARNER NEW YORK OR ESSENCE PUBLISHED BY ESSENCE COMMUNICATIONS CHICAGO ACCOUNT THE HUSH PUPPIES DIVISION OF WOLVERINE WORLD WIDE ROCKFORD MICH TAPPED THE DETROIT OFFICE OF CME KHBB A UNIT OF SAATCHI & SAATCHI CO FOR ITS ESTIMATED 3 MILLION ACCOUNT PREVIOUSLY AT WPP GROUP'S FALLON MCELLIGOTT MINNEAPOLIS CME BEAT AGENCIES INCLUDING THE DETROIT OFFICE OF AYER THE CHICAGO OFFICE OF HAL RINEY & PARTNERS AND ROSSIN GREENBERG SERONICK BOSTON CAMPAIGN KAREEM ABDULJABBAR AND A SLEW OF OTHER SPORTS STARS ARE SET TO APPEAR IN A NEW DIRECT RESPONSE COMMERCIAL FOR AMERICAN EXPRESS MONEYGRAM THE MONEY TRANSFER SERVICE IS GOING AFTER RIVAL WESTERN UNION WITH LOW FEES AND A FREQUENTUSER DISCOUNT CARD ALSO APPEARING IN THE SPOT CREATED BY YOUNG & RUBICAM'S WUNDERMAN CATO JOHNSON ARE MEAN JOE GREENE BOXER BOBBY CZYZ AND FIGURE SKATER JO JO STARBUCK WHO'S NEWS MANDELBAUM MOONEY ASHLEY THE SAN FRANCISCO AD AGENCY NAMED SHEPARD P POLLACK A FORMER PRESIDENT OF PHILIP MORRIS COS' US TOBACCO OPERATIONS TO BE CHAIRMAN OF THE AGENCY CATHI MOONEY THE AGENCY'S CURRENT CHAIRMAN AND CREATIVE DIRECTOR REMAINS CREATIVE DIRECTOR AND RETAINS HER RESPONSIBILITIES MR POLLACK AGE 64 WAS PRESIDENT OF THE PHILIP MORRIS UNIT FROM 1978 TO 1984 THE AGENCY SAID HE HAS BEEN A MEMBER OF THE CLOSELY HELD SHOP'S BOARD 9304080029 930408 IF SAM WANTS TO AVOID A PIGOUT HE'LL SIGN UP FOR BARKING LESSONS BY PAULA L STEPANKOWSKY SPECIAL TO THE WALL STREET JOURNAL HE SITS AT HIS MASTER'S FEET WHILE THE TV IS ON HE COMES WHEN CALLED AND HE KNOCKS ON THE DOOR WITH HIS NOSE WHEN HE WANTS IN HE EVEN SITS ON HIS HIND LEGS AND BEGS FOR TREATS DOES THIS BEHAVIOR MAKE SAM THE HAM A PET OR JUST ANOTHER HOG HOW THE SALEM ORE CITY COUNCIL ANSWERS THIS HEFTY QUESTION WILL DETERMINE WHETHER SAM CAN STAY WITH THE JAGODNIK FAMILY OR BE FORCED TO SEEK ASYLUM OUTSIDE THE CITY LIMITS SAM A 93POUND POTBELLIED PIG WAS USED TO WALLOWING IN A FAMILY LIFE THAT INCLUDES SLUMBER PARTIES AND CAMPING BUT THEN SOME NEIGHBORS COMPLAINED ABOUT HIS GRUNTING AND PERSONAL HYGIENE BECAUSE SALEM HAS AN ORDINANCE PROHIBITING LIVESTOCK IN RESIDENTIAL AREAS THE CITY COUNCIL LABELED SAM LIVESTOCK AND GAVE HIM THREE DAYS TO GET OUT OF TOWN BUT THE JAGODNIKS WHO HAVE OWNED SAM SINCE HE WAS A PIGLET WEREN'T ABOUT TO GIVE UP THEIR PORCINE PAL WITHOUT A FIGHT THERE IS A BIG DIFFERENCE BETWEEN A REGULAR FARMTYPE PIG AND THE POTBELLY SAYS MARY JAGODNIK A KINDERGARTEN TEACHER WHO ACQUIRED SAM BECAUSE HER TWO CHILDREN WANTED A PET AND SHE AND HER DAUGHTER ARE ALLERGIC TO ANYTHING WITH FUR SHE ADDS WE WOULDN'T WANT A REGULAR PIG IN OUR HOUSE THE JAGODNIKS PROTESTED THE CITY COUNCIL'S RULING SO THE COUNCIL ASKED SALEM'S PLANNING COMMISSION TO CLARIFY THE DEFINITIONS OF PET AND LIVESTOCK BEFORE IT RULES AGAIN KENN BATTAILE THE COMMISSION'S PLANNING ADMINISTRATOR SAYS THE PET COMMITTEE HOPES TO HAVE A RECOMMENDATION BY AUGUST I HAVE NO IDEA WHETHER PETS CAN ONLY BE PETTED OR WHETHER PETS HAVE TO DO TRICKS OR WHETHER I EVEN CARE SAYS MR BATTAILE WHO WILL REVIEW WHAT THE COMMITTEE COMES UP WITH AND FORWARD IT TO THE COUNCIL IF THE PLANNING COMMISSION DOESN'T RECOGNIZE SAM'S FINER QUALITIES THE JAGODNIKS WOULD APPEAL TO HIGHER AUTHORITIES OR MAYBE EVEN MOVE WE WILL DO WHATEVER WE NEED TO DO TO KEEP HIM MRS JAGODNIK SAYS IT'S NOT LIKE HE'S A MATERIAL ITEM HE'S PART OF THE FAMILY DESPITE THE PET PEEVE SAM SEEMS SERENE HE SEEMS TO BE TAKING THIS ALL VERY NICELY MRS JAGODNIK SAYS I'M THE ONE WHO'S NOT TAKING IT WELL 9304080028 930408 SUSPECT INDICTED IN THE BOMBING AT TRADE CENTER BY JONATHAN M MOSES AND DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL GRAND JURY INDICTED A FIFTH MAN ON CHARGES OF PARTICIPATING IN THE BOMBING OF THE WORLD TRADE CENTER THE SUSPECT BILAL ALKAISI 26 HAS BEEN IN JAIL SINCE LAST MONTH SEPARATELY THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY ESTIMATED ITS COSTS FROM THE BOMBING THAT KILLED SIX PEOPLE AND INJURED 1000 OTHERS AT ABOUT 378 MILLION MUCH OF WHICH WOULD BE COVERED BY INSURANCE THE LATEST INDICTMENT WHICH INCLUDES MR ALKAISI'S NAME AS WELL AS THE FOUR OTHER PEOPLE PREVIOUSLY INDICTED IN THE BOMBING PROVIDES NO NEW DETAILS ON HOW PROSECUTORS THINK THE EXPLOSION TOOK PLACE BUT IT DOES SAY THAT THE GRAND JURY BELIEVES OTHERS KNOWN AND UNKNOWN PARTICIPATED IN THE BOMBING OF THE FIVE INDICTED SO FAR FOUR ARE BEING HELD WITHOUT BAIL AND ONE RAMZI AHMED YOUSEF IS A FUGITIVE MR ALKAISI'S LAWYER HOWER MULHOLLAND DIDN'T RETURN A PHONE CALL SEEKING COMMENT BUT HAS SAID HIS CLIENT DIDN'T PARTICIPATE IN THE BOMBING MEANWHILE ROBALD KUBY AN ATTORNEY FOR IBRAHIM ELGABROWNY A SIXTH MAN ARRESTED IN THE CASE SAID PROSECUTORS ARE SEEKING HAIR AND WRITING SAMPLES FROM HIS CLIENT MR ELGABROWNY WAS INDICTED ON CHARGES OF OBSTRUCTING THE INVESTIGATION INTO THE BOMBING BUT HASN'T BEEN LINKED TO IT MR KUBY SAYS HIS CLIENT HAD NOTHING TO DO WITH THE BOMBING AND DIDN'T OBSTRUCT THE INVESTIGATION PORT AUTHORITY CHAIRMAN RICHARD C LEONE SAID THE AUTHORITY'S NET COSTS FROM THE BOMBING AFTER INSURANCE WOULD BE ABOUT 20 MILLION TO 22 MILLION MOST OF THE TENANTS IN THE TWIN TOWERS HAVE RETURNED TO THEIR OFFICES IN ESTIMATING THE IMPACT OF THE FEB 26 EXPLOSION ON THE REGIONAL ECONOMY THE AUTHORITY PROJECTED THAT THE BOMBING COST THE REGION 541 MILLION TO 592 MILLION THE AGENCY ESTIMATED THAT TRADE CENTER TENANTS INCURRED COSTS OF ABOUT 132 MILLION TO 160 MILLION OTHER DOWNTOWN BUSINESSES HAD COSTS OF ABOUT 10 MILLION AND DISRUPTION THROUGHOUT THE REGION COST BETWEEN 24 MILLION AND 41 MILLION IN ITS ANALYSIS THE AUTHORITY SAID THE AFTERMATH OF THE BLAST CREATED 5000 TEMPORARY JOBS FOR CLEANING RECONSTRUCTION AND OTHER REPAIR WORK THE BOMBING HOWEVER CAUSED 1600 JOBS TO BE LOST MOSTLY FROM THE CLOSED VISTA INTERNATIONAL HOTEL THE HOTEL MANAGED BY A UNIT OF HILTON INTERNATIONAL CO ISN'T EXPECTED TO REOPEN FOR SEVERAL MONTHS 9304080027 930408 LETTERS TO THE EDITOR A VOICE IN THE WILDERNESS OF OPPRESSION THAT IS NEWS TO US JUST AS IT MUST BE TO THE MILLIONS AROUND THE WORLD WHO FOR THE PAST 50 YEARS HAVE RELIED ON VOA FOR ACCURATE AND OBJECTIVE INFORMATION THEY CERTAINLY DID NOT THINK THEY WERE BEING SOLD AMERICA BY THE VOICE OF AMERICA OTHERWISE THEY PROBABLY WOULD NOT HAVE LISTENED BUT LISTEN THEY HAVE AND THEY STILL DO IN CHINA AT THE TIME OF THE TIANANMEN SQUARE UPRISING IN 1989 THE VOICE OF AMERICA WAS THE LIFELINE OF INFORMATION FOR THE STUDENTS AND THE CHINESE AUTHORITIES THEMSELVES ESTIMATED OUR LISTENERSHIP TO BE IN THE TENS OF MILLIONS SINCE THE SPRING OF 1989 THE CHINESE GOVERNMENT HAS UNSUCCESSFULLY ATTEMPTED TO JAM OUR BROADCASTS AND THEY CERTAINLY DO NOT JAM BECAUSE THEY THINK WE SELL AMERICA THEY DO IT BECAUSE THEY DO NOT LIKE WHAT WE SAY ABOUT THEIR REPRESSIVE PRACTICES DURING A VISIT TO VOA IN 1991 CZECHOSLOVAK PRESIDENT VACLAV HAVEL TOLD US YOU HAVE INFORMED US TRUTHFULLY NOW YOU WILL HAVE TO INFORM US ABOUT HOW TO CREATE DEMOCRACY AND IN MOSCOW AFTER THE FAILED COUP GRAFFITI WAS FOUND SCRAWLED ON A WALL NEAR THE RUSSIAN WHITE HOUSE THANK YOU VOICE OF AMERICA FOR BRINGING US THE STRAIGHTCOOP SELL AMERICA I DON'T THINK SO MR LAQUEUR FORCEFULLY ARGUES IN FAVOR OF KEEPING RADIO LIBERTY AND RADIO FREE EUROPE ON THE AIR AS BOTH STATIONS ARE FACING A PHASEOUT INITIATED BY THE CLINTON ADMINISTRATION I TOO BELIEVE THAT GIVEN THE CURRENT POLITICAL SITUATION IN RUSSIA THE ADMINISTRATION'S PLAN IS DANGEROUSLY SHORTSIGHTED TO REALIZE THIS ONE MIGHT SIMPLY CONSIDER THE POSSIBLEENDING SCENARIOS OF THE CONTINUING POWER STRUGGLE BETWEEN RUSSIAN PRESIDENT BORIS YELTSIN AND RUSSIA'S OUTDATED COMMUNISTERA PARLIAMENT REGARDLESS OF WHO WINS THE CURRENT ROUND OF POLITICAL BATTLES THE CLOSING OF THE ONLY RELIABLE SOURCE OF TIMELY INFORMATION AND INDEPTH ANALYSIS OF RUSSIAN CURRENT EVENTS IN THE TERRITORY OF THE FORMER SOVIET UNION WOULD BE IRRESPONSIBLE AND POLITICALLY NAIVE IN THIS UNSTABLE POLITICAL CLIMATE I HAVE EXPERIENCED THE POWER AND MOTIVATION OF RADIO LIBERTY BROADCASTS FIRSTHAND WHEN TOGETHER WITH OTHER SOVIET REFUSENIKS I WAS RELYING ON RADIO LIBERTY'S FRAGILE JAMMED SIGNAL FOR VITAL INFORMATION WHILE BEING SEPARATED FROM THE FREE WORLD BY THE IRON CURTAIN ADMITTEDLY TIMES HAVE CHANGED BUT THE NEED AND DEMAND FOR OBJECTIVE INFORMATION ABOUT EVENTS IN RUSSIA ARE STILL ENORMOUS BOTH BY THE RUSSIANS THEMSELVES AND BY OUR GOVERNMENT THAT RELIES ON RADIO FREE EUROPE/RADIO LIBERTY'S RESEARCH INSTITUTE FOR ESSENTIAL INFORMATION AND POLICY SUPPORT NOT TO MENTION THE NUMEROUS RUSSIAN SCHOLARS WHO NEED CURRENT INFORMATION NOW AS MUCH AS EVER I AM ABSOLUTELY CONVINCED LARGELY FROM MY PERSONAL EXPERIENCE AS A FORMER SOVIET DISSIDENT THAT SURROGATE INTERNATIONAL BROADCASTING AS PRACTICED BY RADIO FREE EUROPE/RADIO LIBERTY IS THE MOST COSTEFFECTIVE MEANS AVAILABLE TO THE US TO EXERT A POSITIVE INFLUENCE ON EVENTS IN RUSSIA IN THIS RESPECT IT SHOULD BE NOTED THAT THE CLINTON ADMINISTRATION IS PRACTICING BAD INCONSISTENT POLICY WHEN IT IS PLANNING TO SEND A BIG AID PACKAGE TO PRESIDENT YELTSIN WITHOUT A VERY GOOD IDEA ABOUT HOW THIS MONEY IS GOING TO BE SPENT WHILE AT THE SAME TIME ELIMINATING THE TIMETESTED AND HIGHLY EFFICIENT PROGRAM THAT GREATLY FACILITATED RUSSIA'S DEMOCRATIC TURNAROUND IN THE FIRST PLACE 9304080026 930408 WORLD MARKETS TOKYO EQUITIES REBOUND NIKKEI GAINS 18 LONDON STOCKS DROP DESPITE A LATE COMEBACK A WALL STREET JOURNAL NEWS ROUNDUP EQUITIES REBOUNDED WEDNESDAY IN TOKYO CLIMBING 18 WITH GAINS ACROSS THE BOARD DESPITE AN AFTERNOON COMEBACK LONDON STOCKS ENDED LOWER FRANKFURT SHARES FELL BROADLY LED BY SLUMPING AUTO ISSUES IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUNGED 27266 POINTS TUESDAY ADVANCED 34243 TO 1982923 THE FIRMEST CLOSE SINCE MARCH 25 FIRST SECTION VOLUME WAS ESTIMATED AT 850 MILLION SHARES UP FROM 7344 MILLION SHARES A DAY EARLIER ADVANCING ISSUES TOTALED 809 AND RETREATING ISSUES 271 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH FELL 2188 POINTS TUESDAY JUMPED 2975 OR SLIGHTLY MORE THAN 19 TO 155922 THE NIKKEI MOVED BETWEEN 1950658 AT THE OPENING AND 2005451 IN LATE MORNING CLEARING THE 20000 BARRIER IN INTRADAY TRADING FOR THE FIRST TIME IN MORE THAN A YEAR IT WAVERED MOST OF THE AFTERNOON IN A TIGHT RANGE BETWEEN 19900 AND 20000 BEFORE EASING IN THE FINAL HALFHOUR BECAUSE OF HEAVY SELLING OF BASKETS OF STOCKS BY ARBITRAGERS AND PROFITTAKING ON NEWS REPORTS THAT BANK OF JAPAN GOVERNOR YASUSHI MIENO VIEWS TOKYO STOCKS' RECENT STRENGTH AS OVERDONE AND BELIEVES PRICES SHOULD REFLECT CORPORATE EARNINGS THE NIKKEI INDEX FINISHED THURSDAY'S MORNING SESSION AT 1989810 UP 6887 THE MARKET MEASURED BY THE NIKKEI HAS ZOOMED UP 18 IN THE PAST MONTH AS INVESTORS AWAIT ECONOMICSTIMULUS MEASURES THE JAPANESE GOVERNMENT IS TO DETAIL BEFORE PRIME MINISTER KIICHI MIYAZAWA LEAVES FOR THE US NEXT THURSDAY TO MEET PRESIDENT BILL CLINTON IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 101 POINTS TO 28221 WELL ABOVE THE DAY'S LOW OF 28006 THE FT 30STOCK INDEX DROPPED 73 POINTS TO 21826 VOLUME WAS 508 MILLION SHARES COMPARED WITH 5384 MILLION SHARES A DAY EARLIER THE LATE RECOVERY WAS ATTRIBUTED TO A STEADY OPENING ON WALL STREET AND TO TECHNICAL FACTORS SUCH AS A BUYING TRIGGER AT 2800 ON THE 100SHARE INDEX THAT HEARTENED INVESTORS THE BENCHMARK AVERAGE HAS FALLEN MORE THAN 160 POINTS OR 7 SINCE THE BRITISH BUDGET ANNOUNCEMENT MARCH 16 EARLIER YESTERDAY SHARE PRICES PLUNGED ON A SELLOFF IN THE STOCKINDEX FUTURES MARKET AND DECLINES BY SOME CONSUMERPRODUCTS STOCKS FOLLOWING A DROP TUESDAY IN THE SAME SECTOR IN THE US MANY INVESTORS FEAR CONSUMERS ARE ABANDONING BRANDNAME PRODUCTS FOR LESS EXPENSIVE RIVALS YET MOST STOCKPRICE DECLINES REFLECTED DEALERS' MARKDOWNS RATHER THAN GENUINE SELLING INTEREST GIVEN A LACK OF FRESH NEWS AHEAD OF THE EASTER HOLIDAY IN FRANKFURT THE DAX 30STOCK INDEX FELL 1509 POINTS TO 165031 IN ADDITION TO PRESSURE FROM THE AUTO SECTOR THE MARKET'S WEAK TONE RESULTED FROM POSITIONSQUARING AHEAD OF THE FOURDAY EASTER WEEKEND AND FROM A LARGERTHANEXPECTED LIQUIDITY DRAIN IN THE MONEY MARKET THROUGH THE GERMAN CENTRAL BANK'S SECURITIES REPURCHASE AGREEMENTS ELSEWHERE IN EUROPE PARIS STOCKS SOFTENED IN CORPORATE EARNINGSDRIVEN DEALINGS AMSTERDAM SHARES FELL FOLLOWING RECENT RALLIES AS INVESTORS IGNORED A STEADY DOLLAR AND WALL STREET'S BRIGHT OPENING IN MILAN EQUITIES WERE SPURRED HIGHER BY POSITIVE SENTIMENT AND SOME COVERING OF SHORT OR OVERSOLD POSITIONS THE MARKET'S BUOYANCY RESULTED PARTLY FROM HOPES THAT THE ITALIAN LIRA'S DEPRECATION AGAINST OTHER EUROPEAN CURRENCIES WILL ALLOW ITALIAN MANUFACTURERS TO INCREASE EXPORTS ZURICH STOCKS DROPPED ON TOBACCO PRODUCT PRICE CUTS THAT COULD PROMPT SIMILAR ACTIONS FOR OTHER CONSUMER PRODUCTS COMPANIES TO FIGHT DISCOUNTERS AMONG ASIAN AND PACIFIC BOURSES SYDNEY STOCKS CONTINUED TO DRIFT DOWN AND HONG KONG SHARES LOST MORE GROUND ON PROFITTAKING AND THE ABSENCE OF POSITIVE MARKET SENTIMENT FOR THE NEAR TERM TAIPEI STOCKS ROSE ON SPECULATION ABOUT FAVORABLE PROSPECTS FOR ISSUES WITH BUSINESS LINKS TO CHINA MANILA SHARES JUMPED IN HEAVY VOLUME ON EVIDENCE THE PHILIPPINE GOVERNMENT IS SERIOUSLY ADDRESSING THE PROBLEM WITH POWER SHORTAGES SEOUL PRICES ROSE FOR THE FOURTH CONSECUTIVE SESSION IN THIS YEAR'S HEAVIEST VOLUME AS INVESTORS WERE BULLISH ABOUT THE SOUTH KOREAN ECONOMY'S PROSPECTS AMONG CORPORATE DEVELOPMENTS IN LONDON WELLCOME SANK 23 PENCE OR 32 TO 698 PENCE 1057 AT A MEETING WITH ANALYSTS THE PHARMACEUTICAL COMPANY DEFENDED THE EARLY USE OF RETROVIR KNOWN AS AZT FOR PATIENTS WHO HAVE THE HIV VIRUS BUT DON'T SHOW SYMPTOMS OF ACQUIRED IMMUNE DEFICIENCY SYNDROME WELLCOME WILL PROCEED WITH APPLICATIONS TO REGULATORS THROUGHOUT EUROPE FOR PREEMPTIVE USE OF RETROVIR THE VALUE OF EARLY USE OF RETROVIR HAS BEEN QUESTIONED BY A LARGE ANGLOFRENCH STUDY BUT WELLCOME CITED FIVE PREVIOUS STUDIES WITH FAVORABLE RESULTS IN FRANKFURT DAIMLERBENZ SLUMPED 167 MARKS OR 29 TO 56380 MARKS 34973 IN FURTHER REACTION TO THE INDUSTRIAL COMPANY'S 25 DROP IN EARNINGS FOR 1992 EARLIER THIS WEEK THE COMPANY CONCEDED ITS MERCEDESBENZ UNIT WAS UNPROFITABLE IT ALSO SAID IT WOULD CUT ALMOST 15000 OF DAIMLER'S 377000 TOTAL JOBS THIS YEAR VOLKSWAGEN SKIDDED 790 OR 25 TO 308 THE AUTO MAKER'S AUDI UNIT REPORTED THAT 1992 PROFIT TUMBLED 53 TO 86 MILLION MARKS DESPITE A 13 INCREASE IN SALES TO A RECORD 1674 BILLION MARKS AND WARNED OF DECLINES FOR THE YEAR IN THE FIRST QUARTER AUDI'S GERMAN MARKET SHARE SHRANK TO 53 FROM 63 AND WORLDWIDE SALES PLUNGED 31 TO ABOUT 95000 CARS AND AUDI POSTED AN UNSPECIFIED LOSS FOR THE PERIOD AUDI ALSO SAID IT WOULD DEVELOP AND PRODUCE A SPORTS CAR WITH PORSCHE THAT IS BASED ON AN AUDI DESIGN IN PARIS MICHELIN DECLINED 14 FRENCH FRANCS TO 1651 FRANCS 3024 THE TIRE MAKER POSTED 1992 PROFIT OF 79 MILLION FRANCS 145 MILLION COMPARED WITH A YEAREARLIER NET LOSS OF 699 MILLION FRANCS BUT MICHELIN WARNED THAT IT MIGHT HAVE A LOSS FOR THIS YEAR'S FIRST HALF IF ECONOMIC CONDITIONS DON'T IMPROVE IN AMSTERDAM HEINEKEN LOST 610 GUILDERS OR 31 TO 19090 GUILDERS 10536 THE BREWER SAID THAT ITS MARKETS REMAIN UNDER PRESSURE AND THAT IT CAN'T FORECAST 1993 RESULTS THOUGH IT WARNED AGAINST TOO HIGH EXPECTATIONS DESPITE A CORPORATE RESTRUCTURING IN ITS NEWLY PUBLISHED 1992 ANNUAL REPORT HEINEKEN DISCLOSED PRETAX OPERATING PROFIT OF 7332 MILLION GUILDERS 4047 MILLION UP LESS THAN 1 FROM A YEAR EARLIER THE NEWS SHOCKED THE MARKET AS HEINEKEN IN MARCH POSTED A 27 RISE IN 1992 PROFIT TO 564 MILLION GUILDERS BUOYED BY A ONETIME GAIN OF 101 MILLION GUILDERS ON THE SALE OF PROPERTY IN BRUSSELS SOLVAY DROPPED 250 BELGIAN FRANCS OR 19 TO 12900 FRANCS 38894 THE CHEMICAL COMPANY'S 1992 PROFIT DECLINED 17 TO 976 BILLION FRANCS 2943 MILLION MAINLY BECAUSE OF THE ECONOMIC DOWNTURN AND INCREASED COMPETITION FROM EASTERN EUROPE AND THE US 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 9304080025 930408 OTC FOCUS STOCKS FINISH WITH MARGINAL GAINS RIDING STRENGTH OF TECHNOLOGY ISSUES BY CHRISTOPHER ELLIOTT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DESPITE PERVASIVE WORRIES ABOUT CORPORATE PROFITS OVERTHECOUNTER STOCKS MUSTERED ENOUGH BUYING POWER FOR A 071 GAIN THE NASDAQ COMPOSITE INDEX CLIMBED 474 POINTS TO 66888 AND THE NASDAQ 100 A MEASURE OF THE LARGEST NONFINANCIAL COMPANIES REGISTERED AN IMPRESSIVE 926POINT RISE TO 69037 TRUE THE NASDAQ MARKET WAS UP SAID GEORGE NOVELLO MANAGING DIRECTOR AT SHEARSON LEHMAN ADVISORS BUT THE GAINS WERE FICTITIOUS HEALTHY GROWTH AMONG A HANDFUL OF DOMINANT TECHNOLOGY ISSUES CREATED AN ILLUSION OF A ROBUST MARKET INTEL SURGED 2 1/2 TO 114 IN PART BECAUSE OF ANTICIPATION OF ITS EARNINGS ANNOUNCEMENT EXPECTED MONDAY MICROSOFT ADDED 1/2 TO 90 1/4 APPLE COMPUTER ROSE 1 3/4 TO 50 1/2 AND NOVELL CLIMBED 7/8 TO 32 BUT THE NARROW 13101269 MARGIN OF ADVANCERS OVER DECLINERS SUGGESTS INVESTORS REMAIN SOMEWHAT WORRIED ABOUT THE OUTCOME OF THE UPCOMING QUARTERLY EARNINGS PERIOD IT DOESN'T FEEL LIKE WE WERE UP COMPLAINED JOHN GIESEA MANAGER OF OTC TRADING AT ADVEST INC SOME COMPANIES ALREADY HAVE ISSUED FIRSTQUARTER RESULTS ALTHOUGH THE CUSTOMARY EARNINGS REPORTING PERIOD DOESN'T GET STARTED UNTIL MIDAPRIL OTHERS SUCH AS SUNRISE TECHNOLOGIES BEGAN WARNING INVESTORS OF DISAPPOINTING PROFITS THE FREMONT CALIF MEDICAL DEVICES COMPANY WHOSE STOCK SLIPPED 1/4 TO 6 7/8 SAID IT EXPECTS TO REPORT A LOSS OF ABOUT 600000 FOR THE FIRST QUARTER IT SAID THE LOSS REFLECTS STARTUP MARKETING AND SALES EXPENSES TIED TO ITS WORLDWIDE DENTAL PROGRAM AND EXPENSES ASSOCIATED WITH THE DEVELOPMENT OF THE LASER THERMAL KERATOPLASTY SYSTEM FOR CORNEAL SHAPING ANOTHER ISSUE AFFECTED BY ITS EARNINGS PREVIEW WAS DSP TECHNOLOGY ALSO BASED IN FREMONT WHICH TUMBLED 1 TO 2 5/8 AFTER IT SAID IT EXPECTS TO REPORT BREAKEVEN RESULTS FOR ITS FIRST QUARTER ENDING APRIL 30 IN THE QUARTER A YEAR EARLIER IT POSTED A PROFIT OF 165000 OR EIGHT CENTS A SHARE ON SALES OF 25 MILLION DSP BLAMED THIS QUARTER'S RESULTS ON THE TIMING OF CERTAIN CONTRACTS NOT ALL OF THE SOCALLED PRERELEASED EARNINGS EXACTED SELLING PRESSURE SATELLITE TECHNOLOGY MANAGEMENT'S STOCK WAS STUCK IN NEGATIVE TERRITORY MOST OF THE SESSION AFTER IT CAUTIONED OF LOWERTHANEXPECTED EARNINGS IN THE FIRST QUARTER BUT THE COSTA MESA CALIF COMMUNICATIONS NETWORK CONCERN'S SHARES EDGED 1/2 POINT HIGHER TO CLOSE AT 9 SATELLITE TECHNOLOGY'S MOVEMENT IN MANY WAYS ILLUSTRATED YESTERDAY'S NASDAQ MARKET ACTION AFTER A SLOW START PRICES EDGED UPWARD ONLY TO CLOSE UNCONVINCINGLY HIGHER TRADING LOST SOME OF ITS EARLIER MOMENTUM HOWEVER WITH A LACKLUSTER 181 MILLION SHARES CHANGING HANDS AMONG ISSUES LISTED ON THE NATIONAL MARKET SYSTEM DOWN FROM YESTERDAY'S 189 MILLION MOST OF THE MARKET WAS JUST TREADING WATER SAID NELSON GOLD SENIOR VICE PRESIDENT OF OTC TRADING AT INTERSTATE JOHNSON LANE CORP MARKET WATCHERS PREDICT THE PACE OF TRADING WILL SLOW FURTHER TODAY BEFORE THE HOLIDAY WEEKEND I THINK WE'RE JUST MARKING TIME TO GET THROUGH THE WEEK SAID ADVEST'S MR GIESEA ON THE BIG BOARD STOCKS BOUNCED HIGHER ON SEVERAL INSTALLMENTS OF COMPUTERPROMPTED BUYING PROGRAMS LEAVING THE DOW JONES INDUSTRIAL AVERAGE UP 1945 OR 058 AT 339702 THE STANDARD & POOR'S 500STOCK INDEX ADDED 157 OR 036 TO 44273 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 070 OR 029 TO 24432 AMONG OVERTHECOUNTER STOCKS COLLECTIVE BANCORP WAS UP 2 TO 31 AFTER IT RELEASED BETTERTHANEXPECTED EARNINGS THE EGG HARBOR CITY NJ SAVINGS AND LOAN RECORDED FISCAL THIRDQUARTER NET INCOME OF 119 MILLION OR 87 CENTS A SHARE COMPARED WITH 83 MILLION OR 62 CENTS A SHARE A YEAR EARLIER PEAK TECHNOLOGIES GROUP ROSE 3/4 TO 10 1/2 THE NEW YORK DEVELOPER OF DATA COLLECTION SYSTEMS SAID IT WILL BEGIN SHIPPING ITS MESA 7000 FREEDOM DISK ARRAY SYSTEM IN MAY IT SAID THE NEW PRODUCT WILL ALLOW CUSTOMIZATION FOR USERS WHO NEED STORAGE OF MULTIPLE TRANSACTIONS CONTAINING A MINIMUM AMOUNT OF DATA OR RELATIVELY FEW TRANSACTIONS INVOLVING LARGE AMOUNTS OF DATA BHC FINANCIAL A NEW ISSUE CLOSED AT 19 THE PHILADELPHIA HOLDING COMPANY'S 21 MILLIONSHARE OFFERING WHICH WAS POSTPONED LAST JUNE BECAUSE OF MARKET CONDITIONS WAS PRICED AT 14 NORTH AMERICAN NATIONAL A COLUMBUS OHIO INSURER SURGED 3 1/2 TO 14 1/4 AFTER IT AGREED TO BE ACQUIRED BY LIBERTY CORP IN A 536 MILLION CASH TRANSACTION UNDER THE AGREEMENT SHAREHOLDERS OF NORTH AMERICAN WOULD RECEIVE 1525 IN CASH FOR EACH SHARE OF THEIR STOCK ON THE BIG BOARD SHARES OF LIBERTY REMAINED FLAT AT 30 7/8 ACCLAIM ENTERTAINMENT ROSE 1 1/2 TO 18 3/8 AFTER THE OYSTER BAY NY SOFTWARE DEVELOPER REPORTED SECONDQUARTER NET INCOME OF 54 MILLION OR 19 CENTS A SHARE COMPARED WITH 37 MILLION OR 15 CENTS A SHARE A YEAR EARLIER A COMPANY SPOKESMAN ATTRIBUTED THE RESULTS TO STRONG HOLIDAY SALES BIG O TIRES OF ENGLEWOOD COLO INCHED 3/4 HIGHER TO 11 AFTER IT DELAYED ITS OFFERING OF 18 MILLION COMMON SHARES THE AUTOMOTIVE SUPPLIES RETAILER CITED POOR MARKET CONDITIONS FOR THE POSTPONEMENT 9304080024 930408 ECONOMY CONSUMER DEBT ROSE AT 19 ANNUAL RATE IN FEBRUARY FED SAYS WASHINGTON AMERICANS INCREASED THEIR DEBT BY 117 BILLION IN FEBRUARY ACCORDING TO THE FEDERAL RESERVE THE RISE AT AN ANNUAL RATE OF 19 IS THE SIXTH STRAIGHT MONTHLY INCREASE IN CONSUMER CREDIT AND FOLLOWS A 16 RISE IN JANUARY HOWEVER THE PACE HAS SLOWED CONSIDERABLY FROM DECEMBER WHEN CONSUMERS EXPANDED THEIR BORROWING AN ANNUAL RATE OF 53 THE SLOWDOWN IS IN LINE WITH OTHER SIGNALS SUGGESTING THAT SPENDING HAS LOST SOME OF ITS VIGOR SINCE THE FOURTH QUARTER BANK CARD DEBT ROSE THE MOST IN FEBRUARY JUMPING 114 TO 239 BILLION INCOME GROWTH HAS BEEN SO SLOW THAT CONSUMERS HAVE HAD TO PUT MORE PURCHASES ON CREDIT CARDS AS WELL AS DIP HEAVILY INTO SAVINGS AUTO LOANS INCREASED AT AN ANNUAL RATE OF 48 A CATCHALL CATEGORY WHICH INCLUDES LOANS FOR SCHOOLS VACATIONS AND TO PAY OFF TAXES DECREASED AT AN ANNUAL RATE OF 126 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR FEBRUARY IN BILLIONS AND PERCENTAGE CHANGES FROM JANUARY AT AN ANNUAL RATE 9304080023 930408 BUSINESS BRIEF ACCLAIM ENTERTAINMENT INC STOCK PRICE CLIMBS ABOUT 9 ON 2NDPERIOD PROFIT REPORT ENTERTAINMENT SOFTWARE MAKER ACCLAIM ENTERTAINMENT INC'S SHARES ROSE NEARLY 9 ON NEWS OF SHARPLY HIGHER EARNINGS AND REVENUE NET INCOME FOR THE FISCAL SECOND QUARTER ENDED FEB 28 ROSE 42 TO 54 MILLION OR 19 CENTS A SHARE FROM THE YEAREARLIER 38 MILLION OR 15 CENTS A SHARE REVENUE ROSE 46 TO 717 MILLION IN OVERTHECOUNTER TRADING ACCLAIM SHARES CLOSED AT 18375 A SHARE UP 150 A SHARE THE OYSTER BAY NY COMPANY WHICH MAKES INTERACTIVE ENTERTAINMENT PRODUCTS UNDER THE ACCLAIM LJN FLYING EDGE AND ARENA LABELS SAID IT HAD A STRONG HOLIDAY SELLING SEASON IN THE QUARTER AND THAT OVERSEAS REVENUE CONTINUES TO BE SIGNIFICANT INTERNATIONAL OPERATIONS ACCOUNTED FOR 44 OF REVENUE IN THE FIRST SIX MONTHS FOR THE SIX MONTHS ENDED FEB 28 NET INCOME ROSE TO 117 MILLION OR 41 CENTS A SHARE FROM 62 MILLION OR 27 CENTS A SHARE REVENUE INCREASED 65 TO 1504 MILLION FROM 913 MILLION 9304080022 930408 REVIEW & OUTLOOK EDITORIAL ASIDES REPUNCHING A TICKET OOPS IN LAST THURSDAY'S EDITORIAL ON THE CLASSACTION SETTLEMENT WITH THE AIRLINES WE SAID THAT PASSENGERS COULDN'T REDEEM THEIR DISCOUNT COUPONS THROUGH THEIR TRAVEL AGENTS BUT AFTER THE TRAVEL AGENTS COMPLAINED TO JUDGE SHOOB THE AIRLINES AGREED TO CUT THEM IN TOO AS WE SAID NOBODY GOES HOME UNHAPPY FROM THIS ONE 9304080021 930408 BUSINESS BRIEF ACE CASH EXPRESS INC STOCK DROPS AFTER TARGET IS MISSED FOR OPERATING NET ACE CASH EXPRESS INC'S STOCK PRICE DROPPED 9 AFTER IT DISCLOSED THAT PRELIMINARY FISCAL THIRDQUARTER OPERATING PROFIT INCOME DIDN'T INCREASE AS EXPECTED THE NEWLY PUBLIC CHAIN OF CHECKCASHING STORES SAID IT EXPECTS TO REPORT THAT FOR THE QUARTER ENDED MARCH 31 ITS OPERATING PROFIT BEFORE AN EXTRAORDINARY GAIN INCREASED TO 12 MILLION TO 13 MILLION FROM YEAREARLIER NET OF 1 MILLION PRIMARILY BECAUSE OF AN EXPANSION TO 272 STORES FROM 220 STORES THE OPERATING PROFIT WAS EQUAL TO 29 CENTS TO 31 CENTS A SHARE DOWN FROM YEAREARLIER PERSHARE NET OF 38 CENTS BECAUSE OF A 15MILLIONSHARE INCREASE IN SHARES OUTSTANDING A SPOKESMAN FOR THE DALLAS COMPANY SAID THE ONLY ANALYST WHO COVERS ACE CASH EXPRESS HAD EXPECTED THE COMPANY TO EARN 36 CENTS TO 39 CENTS A SHARE FOR THE FISCAL THIRD QUARTER THE COMPANY'S STOCK CLOSED AT 10 DOWN 1 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9304080020 930408 LAW LEGAL BEAT LAWYERS SERVE TIME ON BENCH IN PHILADELPHIA BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL PLAGUED WITH ONE OF THE NATION'S BIGGEST BACKLOGS OF UNRESOLVED LAWSUITS PHILADELPHIA IS TRYING A NOVEL SOLUTION PUTTING LAWYERS ON THE BENCH IT'S NOT QUITE WHAT DAN QUAYLE HAD IN MIND WHEN HE CALLED FOR AN OVERHAUL OF THE LEGAL SYSTEM TWO YEARS AGO BUT THE PLAN IS ALREADY SHOWING SIGNS OF ACHIEVING ONE OF HIS MAIN GOALS UNCLOGGING THE COURTS BY ASKING PHILADELPHIA'S TOP TRIAL LAWYERS TO DON JUDICIAL ROBES AND SERVE AS TEMPORARY JUDGES PHILADELPHIA COURT ADMINISTRATORS HOPE TO CLEAR THE CITY'S DUSTY BACKLOG OF MORE THAN 28000 STATECOURT CASES BY 1995 ULTIMATELY IF THINGS GO AS PLANNED NO ONE WHO FILES A LAWSUIT IN PHILADELPHIA WILL HAVE TO WAIT MORE THAN TWO YEARS TO GET HIS OR HER DAY IN COURT GETTING TO THAT POINT IS STILL A WAYS OFF BUT IT WOULD REPRESENT QUITE AN EXTRAORDINARY ACHIEVEMENT FOR A CITY WHERE MANY JUDGES OPERATE WITHOUT PERSONAL COMPUTERS FAX MACHINES OR EVEN TOUCHTONE TELEPHONES AS IN MOST MAJOR URBAN AREAS PHILADELPHIA'S PROBLEMS ARE COMPOUNDED BY A BURGEONING CRIMINAL CASELOAD THAT BY LAW TAKES PRECEDENCE OVER CIVIL LITIGATION AS A RESULT CIVIL SUITS IN PHILADELPHIA'S STATE COURT ARE REGULARLY PUT ON HOLD FOR AS LONG AS FIVE YEARS AND WHILE MANY URBAN JURISDICTIONS HAVE EXPERIMENTED WITH COURT MEDIATION PROGRAMS THE SCOPE OF PHILADELPHIA' EFFORT APPEARS UNPRECEDENTED BOTH FOR ITS RELIANCE ON LOCAL LAWYERS AND THE DEGREE TO WHICH THEY'VE STEPPED FORWARD TO HELP ABOUT 300 OF PHILADELPHIA'S MOST HIGHPRICED PLAINTIFFS' AND DEFENSE ATTORNEYS HAVE VOLUNTEERED TO PARTICIPATE IN THE PROGRAM MOST WORK AS MEDIATORS ENCOURAGING LITIGANTS TO SETTLE THEIR CASES BEFORE TRIAL BUT ABOUT 50 ALSO HAVE BEEN GRANTED ALL THE POWERS OF A JUDGE SO FAR THE LAWYERS' INVOLVEMENT HAS BEEN ENORMOUS AND ABSOLUTELY CRITICAL SAYS GEOFF GALLAS EXECUTIVE ADMINISTRATOR OF THE PROGRAM WHICH HAS LED TO AN IMPRESSIVE 90 SETTLEMENT RATE THE WHOLE QUESTION IS HOW DO YOU STRUCTURE YOUR SYSTEM AND PROCESS SO YOU CAN GET THOSE CASES THAT ARE GOING TO SETTLE TO SETTLE SAYS THE DEPUTY TRIAL COURT ADMINISTRATOR IN PHILADELPHIA DAVID C LAWRENCE THE FIRST PHASE OF THE PROGRAM ANNOUNCED A YEAR AGO HAS TACKLED THE OLDEST OF THE DEADWOOD ABOUT 13000 CASES FILED BEFORE OCTOBER 1989 HALF OF THOSE CASES DISAPPEARED AS SOON AS THE LAWYERS INVOLVED WERE INSTRUCTED TO FILE WRITTEN UPDATES ON THE STATUS OF THE CASES MANY HAD ALREADY BEEN RESOLVED OTHERS WERE EITHER WITHDRAWN OR SOON SETTLED THE REMAINING 6369 PRE1989 CASES HAVE BEEN ASSIGNED TO A TWOTIERED MEDIATION PROCESS FIRST THEY ARE HEARD AT A SETTLEMENT CONFERENCE PRESIDED OVER BY ONE OF 250 SPECIAL MASTERS PHILADELPHIA LAWYERS WITH AT LEAST 15 YEARS OF TRIAL EXPERIENCE IF CASES AREN'T RESOLVED AT THAT POINT THEY ARE BUMPED TO THE NEXT LEVEL A CONFERENCE BEFORE ONE OF THE TEMPORARY JUDGES CULLED FROM THE TOP RANKS OF PHILADELPHIA'S PLAINTIFFS' AND DEFENSE BAR THESE ARE WELLKNOWN LITIGATORS WITH 15 TO 20 YEARS OF TRIAL EXPERIENCE WHO ARE EMPOWERED TO HEAR ARGUMENTS MAKE RULINGS AND IF NECESSARY ISSUE SANCTIONS BY THROWING A CASE OUT OR FINING A LAWYER THE KEY TO THIS IS THAT THE LAWYERS HAVE TO HAVE RESPECT FOR THE TEMPORARY JUDGES SAYS RALPH BRENNER A TOP LITIGATOR AND FORMER CHAIRMAN OF ONE OF PHILADELPHIA'S PREMIER FIRMS MONTGOMERY MCCRACKEN WALKER & RHOADS MR BRENNER HIMSELF A TEMPORARY JUDGE WHO SIGNED UP FOR 54 CASES SAYS MOST OF HIS FELLOW JUDGES BELONG TO THE AMERICAN COLLEGE OF TRIAL LAWYERS AND THEREFORE ARE HELD IN HIGH ESTEEM BY PHILADELPHIA'S LEGAL COMMUNITY IN FACT WITH THEIR STATUS AMONG THE CITY'S TRIAL LAWYERS THE TEMPORARY JUDGES OFTEN CARRY MORE CLOUT THAN LOCAL ELECTED JUDGES WHEN NUDGING OPPOSING SIDES TOWARD AGREEMENT AND SINCE THE TEMPORARY JUDGES ARE DONATING VALUABLE TIME THEIR FEES RANGE FROM 300 TO 400 AN HOUR LAWYERS APPEARING BEFORE THEM SELDOM SHOW UP UNPREPARED FOR LITIGANTS UNABLE TO FIND COMMON GROUND AT THIS SECOND STAGE A TRIAL EITHER BEFORE A SITTING JUDGE OR TEMPORARY JUDGE IF BOTH SIDES AGREE REMAINS THE FINAL OPTION BUT OF THE 3270 CASES THAT HAVE GONE THROUGH THE MEDIATION PROCESS SINCE OCTOBER ONLY A THIRD FAILED TO SETTLE WHEN HEARD BY A TEMPORARY JUDGE AND OF THAT NUMBER ONLY ABOUT 325 ULTIMATELY WENT TO TRIAL CRITICS CAUTION THAT THE SUCCESS RATE WHILE IMPRESSIVE SO FAR ONLY APPLIES TO CASES THAT HAVE BEEN CLASSIFIED AS SIMPLE OR STANDARD THAT IS PERSONALINJURY OR BUSINESS CLAIMS INVOLVING RELATIVELY SIMPLE ISSUES AND LOW POTENTIAL DAMAGES ABOUT 1045 COMPLEX CASES CLAIMS SUCH AS PROFESSIONALMALPRACTICE TOXICWASTE AND CLASSACTION SUITS WHICH USUALLY INVOLVE PROTRACTED COURT TIME WERE REMOVED FROM THE PROGRAM TO KEEP IT FROM BOGGING DOWN THAT DECISION RAISED QUESTIONS IN THE LEGAL COMMUNITY ABOUT WHETHER THE PHILADELPHIA EXPERIMENT IS GEARED TOO HEAVILY TOWARD SETTLING LARGE VOLUMES OF SMALL CASES AND IT ANGERED SOME PLAINTIFFS' AND DEFENSE LAWYERS WHO SPECIALIZE IN COMPLEX LITIGATION COURT OFFICIALS AND PHILADELPHIA LAWYER GROUPS HAVE MET EXTENSIVELY TO IRON OUT THESE KINKS WITH SOME SUCCESS BUT ANOTHER QUESTION LINGERS THAT MAY BE MORE PROBLEMATIC HOW LONG CAN PHILADELPHIA'S TOP LAWYERS CONTINUE TO DONATE THEIR TIME ARTHUR G RAYNES A FORMER HEAD OF THE PHILADELPHIA BAR ASSOCIATION WHO HAS TAKEN ON 40 CASES HIMSELF SAYS LAWYERS SHOULD HAVE LITTLE TROUBLE HOLDING ONEHOUR OR TWOHOUR SETTLEMENT CONFERENCES SEVERAL TIMES A WEEK AS HE FREQUENTLY DOES INTERRUPTING HIS PRACTICE FOR A WEEKLONG TRIAL ON THE OTHER HAND WOULD BE MORE DIFFICULT A LEGAL BLUNDER BY STONEWALL INSURANCE CO IS LIKELY TO COME BACK TO HAUNT IT AND OTHER INSURERS STONEWALL ATTORNEY MICHAEL D GALLAGHER SAID THE COMPANY'S LAWYERS IN CALIFORNIA FILED THE WRONG LEGAL BRIEF IN A LIABILITY DISPUTE BEFORE THE CALIFORNIA SUPREME COURT IN JANUARY THE COMPANY MADE AN UNUSUAL ELEVENTHHOUR ATTEMPT TO WITHDRAW THE BRIEF AND REPLACE IT WITH A DIFFERENT ONE BUT THE STATE SUPREME COURT ORDERED STONEWALL TO STAND BY ITS BRIEF WHICH IS MEANT TO SET FORTH THE COMPANY'S LEGAL POSITION IN THE CASE MR GALLAGHER SAID THE POSITION TAKEN IN THE BRIEF WAS INCONSISTENT WITH THE COMPANY'S ARGUMENT IN AT LEAST 20 CASES IN OTHER STATES DEALING WITH LIABILITY CLAIMS FOR ENVIRONMENTAL CLEANUPS THE 10YEAROLD CALIFORNIA CASE JUST FELL BETWEEN THE CRACKS SAID MR GALLAGHER A PARTNER WITH PHILADELPHIA LAW FIRM GERMAN GALLAGHER & MURTAGH STONEWALL'S NATIONAL COUNSEL STONEWALL IS A UNIT OF AMERICAN FINANCIAL CORP OF CINCINNATI IN THE CALIFORNIA CASE STONEWALL THE CITY OF PALOS VERDES ESTATES CALIF WHICH WAS THE POLICYHOLDER AND OTHER INSURERS SUED ONE ANOTHER OVER THEIR SHARES OF A 16 MILLION PAYMENT TO A HOMEOWNER WHOSE HOUSE WAS DAMAGED BY A LANDSLIDE STONEWALL'S ORIGINAL BRIEF EMBRACED AN ARGUMENT GENERALLY FAVORED BY POLICYHOLDERS RATHER THAN INSURERS AND MR GALLAGHER SAID HE NOW EXPECTS TO SEE STONEWALL'S OWN WORDS USED AGAINST IT THE BRIEF ARGUED THAT THE OTHER INSURERS IN THE CASE WHO CLAIMED THEIR POLICIES HAD EXPIRED WHEN THE PROPERTY DAMAGE OCCURRED WERE STILL LIABLE AND SHOULD PAY STONEWALL'S SHARE OF THE SETTLEMENT BECAUSE THE POLICY IS PRETTY MUCH STANDARD FOR THE INDUSTRY LAWYERS SAY THE BRIEF IS LIKELY TO BE CITED IN CASES AGAINST OTHER INSURERS AS WELL EUGENE R ANDERSON A PARTNER WITH ANDERSON KILL OLICK & OSHINSKY IN NEW YORK WHICH FILED A BRIEF SUPPORTING STONEWALL'S INITIAL POSITION SAID THE RULING ITSELF WILL BE USED TO OPPOSE OTHER EFFORTS BY INSURERS WHO TRY TO CHANGE THEIR POSITIONS WHEN IT SUITS THEM MR ANDERSON REPRESENTS MIDAMERICAN LEGAL FOUNDATION A LEGALREFORM ADVOCACY GROUP IN CHICAGO MR ANDERSON AND ATTORNEYS FOR PALOS VERDES ESTATES SAID OTHER INSURERS PERSUADED STONEWALL TO TRY TO WITHDRAW THE BRIEF BUT MR GALLAGHER AND OTHER INSURANCE COMPANY LAWYERS SAID STONEWALL WASN'T PRESSURED THE CALIFORNIA SUPREME COURT LAST YEAR AGREED TO REVIEW THE CASE TO DECIDE WHAT TRIGGERS COVERAGE UNDER A PROPERTY DAMAGE LIABILITY POLICY WHEN THERE ARE OVERLAPPING INSURERS AND DAMAGE OCCURS OVER SEVERAL YEARS IN THE CASE STONEWALL WAS TO PAY 950000 OF THE 16 MILLION AWARD TO THE HOMEOWNER THE CITY WAS TO PAY 350000 AND THE OTHER INSURERS' SHARE WAS 350000 GENERALLY INSURANCE COMPANIES ARGUE THAT THE INSURER WHOSE POLICY IS IN EFFECT WHEN THE DAMAGE FIRST OCCURRED SHOULD BE LIABLE BUT IN STONEWALL'S INITIAL BRIEF THE COMPANY CLAIMED THAT UNDER THE THEORY OF JOINT AND SEPARATE LIABILITY THE OTHER CARRIERS WERE STILL OBLIGATED AND SHOULD PAY STONEWALL'S SHARE THE INITIAL BRIEF WAS PREPARED BY ROBERT L WILSON AN ATTORNEY FOR STONEWALL AT LOS ANGELES LAW FIRM WILSON KENNA & BORYS SYLVIA A DYAL A LAWYER WHO WORKED WITH MR WILSON ON THE CASE SAID THE LOS ANGELES FIRM AND MR GALLAGHER JOINTLY ASKED THAT THE INITIAL BRIEF BE WITHDRAWN VIETNAM VENUE GRAHAM & JAMES A SAN FRANCISCO LAW FIRM RECEIVED US TREASURY DEPARTMENT PERMISSION TO OPEN A REPRESENTATIVE OFFICE IN VIETNAM TO ADVISE COMPANIES SEEKING TO DO BUSINESS THERE THE US EASED TRADE SANCTIONS AGAINST VIETNAM IN DECEMBER ALLOWING US COMPANIES TO NEGOTIATE AND SIGN TRADE AND INVESTMENT CONTRACTS THAT WOULD TAKE EFFECT ONCE THE EMBARGO IS LIFTED GRAHAM & JAMES WILL TEAM UP IN HANOI WITH LAW FIRMS SLY & WEIGALL OF AUSTRALIA AND DEACONS OF HONG KONG WHICH OPENED A VIETNAMESE OFFICE LAST YEAR ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE 9304080019 930408 BUSINESS BRIEF DELL COMPUTER CORP PRICES OF PCS SOLD IN BRITAIN AND FRANCE ARE REDUCED ANOTHER SHOT WAS FIRED THIS WEEK IN THE EUROPEAN SIDE OF THE GLOBAL PC PRICE WAR WITH DELL COMPUTER CORP ANNOUNCING PRICE CUTS OF AS MUCH AS 18 ON MOST OF ITS MODELS IN VARIOUS EUROPEAN COUNTRIES YESTERDAY DELL ANNOUNCED IN BRITAIN CUTS OF AS MUCH AS 13 ON ITS PCS BASED ON INTEL CORP'S 486 MICROPROCESSOR CHIP ABOUT 90 OF ITS EXISTING PRODUCT LINE ACCORDING TO BRUCE SINCLAIR HEAD OF DELL'S NORTHERN EUROPEAN OPERATIONS COMPARABLE CUTS WERE ANNOUNCED BY DELL EARLIER THIS WEEK IN FRANCE AND THE COMPANY'S OTHER EUROPEAN UNITS PLAN SIMILAR ANNOUNCEMENTS THIS WEEK HE SAID AT THE SAME TIME DELL HAS BEGUN SELLING IN EUROPE ITS NEW DIMENSION LINE OF BUDGET PCS ANNOUNCED EARLIER IN THE US 9304080018 930408 ABREAST OF THE MARKET AIRLINES SOAR AS TRANSPORT GAUGE HITS HIGH INDUSTRIALS UP 1945 BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SEVERAL WAVES OF PROGRAM BUYING LIFTED SHARE PRICES LATE IN THE DAY AS AN EXPLOSIVE RALLY IN AIRLINES STOCKS PUSHED THE DOW JONES TRANSPORTATION AVERAGE TO A NEW HIGH BUT THE BIGGEST GAINS WERE IN AIRLINE STOCKS WHICH STARTED RALLYING AFTER UNITED AIRLINES A SUBSIDIARY OF UAL REPORTED A 174 JUMP IN PASSENGER TRAFFIC LAST MONTH AND MAJOR CUTS IN CAPITAL EXPENDITURES THE STOCKS ALSO WERE BUOYED BY NEWS THAT A JOINT COMMITTEE OF CONGRESSIONAL AND PRESIDENTIAL APPOINTEES WILL SOON UNDERTAKE A STUDY OF WAYS TO HELP THE BELEAGUERED AIRLINE INDUSTRY UAL SOARED 9 7/8 TO 137 LEADING OTHER AIRLINE STOCKS HIGHER AND DRIVING THE DOW JONES TRANSPORTATION AVERAGE UP 3667 POINTS TO 161782 AMR THE PARENT OF AMERICAN AIRLINES GAINED 3 1/4 TO 69 DELTA AIR LINES JUMPED 3 1/2 TO 57 AND USAIR LEAPED 3 1/8 TO 24 1/4 VOLUME ON THE BIG BOARD TOTALED 296300000 SHARES UP FROM 289500000 TUESDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1064 TO 861 EVEN THOUGH THE MARKET HAS A BETTER TONE THE DOW IS STILL EXAGGERATING THE STRENGTH OF THE MARKET SAID PHILIP ROTH TECHNICAL ANALYST AT DEAN WITTER REYNOLDS WE HAD A VERY THIN RALLY THE BREADTH WAS NEVER VERY POSITIVE HE SAID MANY OF THE MARKET'S GIANT GROWTH STOCKS WHICH HAD PROVIDED LEADERSHIP SINCE THE LATE 1980S WERE WEAK AGAIN LIMITED DROPPED 1 TO 22 3/4 COCACOLA CO FELL 1/2 TO 39 1/2 WALT DISNEY LOST 1 TO 41 1/2 US SURGICAL DECLINED 2 TO 46 5/8 AND PHILIP MORRIS WHICH SET OFF THE GROWTHSTOCK SELLING WITH DISAPPOINTING NEWS FRIDAY LOST 7/8 TO 47 1/4 IT IS NOW DOWN 26 FROM ITS LEVEL OF LAST THURSDAY AS INSTITUTIONS STRIP MONEY OUT OF THE FORMERLY GLAMOROUS CONSUMER PRODUCTS AND RETAILING GROUPS IT IS BEING TRANSFERRED INTO MANY LARGE ENERGYRELATED AND ECONOMICALLY SENSITIVE ISSUES ALTHOUGH THE RECENT PLUNGE IN BLUECHIP GROWTH STOCKS HAS LEFT SOME INVESTORS LOOKING FOR BARGAINS DAVID SHULMAN MARKET STRATEGIST AT SALOMON BROTHERS SAID HE IS ADVISING CLIENTS TO HOLD OFF ON SUCH PURCHASES HE EXPECTS MORE LOSSES IN THE NEAR TERM US SURGICAL'S PLUNGE FOLLOWS A LOSS OF 4 ON TUESDAY ANALYSTS AT DEAN WITTER REYNOLDS AND COWEN & CO JOINED THE CHORUS THAT HAS BEEN MAKING CAUTIOUS REMARKS ABOUT THE NORWALK CONN MEDICAL PRODUCTS COMPANY DEAN WITTER'S BOB GOLDMAN CUT HIS RATING ON THE STOCK TO SELL FROM NEUTRAL ANALYSTS HAVE WARNED THAT US SURGICAL'S EARNINGS COULD BE DEPRESSED BY ITS DECISION TO USE THIRDPARTY DISTRIBUTORS IN ADDITION TO DIRECT SALES PRODUCTS THEY HAVE SAID MIGHT BE SOLD TO DISTRIBUTORS AT A DISCOUNT MEDTRONIC A MINNEAPOLIS MEDICAL PRODUCTS MAKER LOST 2 3/4 TO 60 HAMBRECHT & QUIST ANALYST KURT KRUGER CUT HIS RATING ON THE STOCK TO HOLD FROM BUY HE SAID DOCTORS ARE BECOMING MORE CONSERVATIVE IN RECOMMENDING ELECTIVE MEDICAL PROCEDURES IN ANTICIPATION OF THE CLINTON ADMINISTRATION'S HEALTHCARE OVERHAUL INITIATIVE THAT COULD HURT MEDTRONIC A LEADING PACEMAKER MANUFACTURER HE SAID MEDTRONIC PLUNGED 3 1/2 ON TUESDAY BURLINGTON RESOURCES ADDED 3/4 TO 46 5/8 THE SEATTLE OIL AND GAS COMPANY SAID IT HAD FIRSTQUARTER NET INCOME OF 35 CENTS A SHARE COMPARED WITH EARNINGS FROM CONTINUING OPERATIONS OF 23 CENTS A YEAR AGO REVENUE ROSE TO 3165 MILLION FROM 2706 MILLION A CONTINUED SLIDE IN THE PRICE OF COPPER SENT SOME MINING STOCKS LOWER PHELPS DODGE LOST 2 5/8 TO 44 CYPRUS MINERALS DECLINED 2 3/4 TO 27 1/8 AND ASARCO SLUMPED 1 1/2 TO 20 1/2 OBSERVERS HAVE TIED THE DROP IN COPPER PRICES TO A DROPOFF IN DEMAND FOR THE METAL FROM CHINESE AND JAPANESE CUSTOMERS CONAGRA FELL 2 3/4 TO 23 THE OMAHA NEB FOOD COMPANY PREDICTED THAT ITS EARNINGS FOR THE FOURTH QUARTER WHICH ENDS IN MAY WILL BE FLAT WITH THE 43 CENTS A SHARE IT POSTED IN THE YEARAGO PERIOD DURACELL DROPPED 1 7/8 TO 30 3/4 GOLDMAN SACHS REMOVED THE BETHEL CONN BATTERY MAKER'S STOCK FROM A RECOMMENDED LIST AND CUT A RATING TO MODERATE OUTPERFORM FROM BUY CAMPBELL SOUP DECLINED 2 3/8 TO 39 3/8 AFTER MERRILL LYNCH DOWNGRADED ITS INTERMEDIATETERM RATING ON THE CAMDEN NJ FOOD CONCERN TO NEUTRAL FROM ABOVE AVERAGE THE BROKERAGE FIRM CONTINUES TO RATE CAMPBELL A LONGTERM BUY BEAR STEARNS JUMPED 1 1/8 TO 19 THE NEW YORK SECURITIES COMPANY REPORTED STRONGERTHANEXPECTED EARNINGS OF 97 CENTS A SHARE FOR THE THIRD QUARTER ENDED LAST MONTH ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD EXPECTED A PROFIT OF JUST 68 CENTS A YEAR AGO IT EARNED 80 CENTS CHART INDUSTRIES LOST 2 3/4 TO 8 3/4 AFTER THE COMPANY ESTIMATED ITS FIRSTQUARTER EARNINGS AT ONE CENT TO FIVE CENTS A SHARE BELOW THE NINE CENTS IT EARNED A YEAR AGO THE EASTLAKE OHIO INDUSTRIAL EQUIPMENT MAKER SAID ANALYSTS HAD EXPECTED ITS EARNINGS TO TOP THE YEAREARLIER LEVEL 9304080017 930408 WEDNESDAY'S MARKETS AIRLINES PROPEL STOCKS HIGHER BONDS INCH UP BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A RALLY IN AIRLINE STOCKS DROVE THE DOW JONES TRANSPORTATION AVERAGE TO A RECORD AND HELPED THE OVERALL MARKET POST STRONG GAINS BOND PRICES ROSE MODESTLY AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE GAINED 1945 POINTS TO 339702 STANDARD & POOR'S 500STOCK INDEX ROSE 157 TO 44273 AND THE NASDAQ COMPOSITE INDEX CLIMBED 474 TO 66888 AIRLINE STOCKS SURGED AFTER UNITED AIRLINES A SUBSIDIARY OF UAL CORP REPORTED A JUMP IN PASSENGER TRAFFIC IN MARCH AND MAJOR CUTS IN CAPITAL SPENDING THE RALLY LIFTED THE DOW JONES TRANSPORTATION AVERAGE 3667 POINTS TO A RECORD 161782 THE STOCKS WERE ALSO BOOSTED BY INCREASED ATTENTION FROM WASHINGTON WHERE A SPECIAL COMMITTEE WILL SOON UNDERTAKE A STUDY OF WAYS TO HELP THE INDUSTRY AMONG THE BIG GAINERS IN THE AIRLINE SECTOR UAL ROSE 9 7/8 OR 78 TO 137 USAIR GAINED 3 1/8 OR 148 TO 24 1/4 AND SOUTHWEST AIRLINES ADDED 2 3/4 OR 76 TO 39 1/8 ANALYSTS SAID INVESTORS ALSO WERE OPTIMISTIC ABOUT TODAY'S REPORT ON WHOLESALE INFLATION IN MARCH HOWEVER TRACY HERRICK CHIEF INVESTMENT STATEGIST AT LOS ANGELESBASED JEFFERIES & CO SAID INFLATIONWARY INVESTORS WERE BEHIND A RISE IN OILSERVICES STOCKS YESTERDAY OIL STOCKS TEND TO BE AN INFLATION HEDGE WHATEVER HAPPENS THE MARKET WILL RIGHT ITSELF BY EARLY NEXT WEEK MR HERRICK SAID IT IS BEING SUSTAINED BY ROCKSOLID SHORTTERM INTEREST RATES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 076 TO 10277 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2963 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1064 ISSUES ROSE AND 861 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 1/4 POINT OR ALMOST 250 FOR EACH 1000 FACE AMOUNT TO YIELD 695 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16195 MARKS AND 11352 YEN COMPARED WITH 16120 MARKS AND 11403 YEN TUESDAY 9304080016 930408 UPFRONT TAX PAYMENTS ON IRS EXTENSIONS WAIVED WASHINGTON THE INTERNAL REVENUE SERVICE SAID IT WILL NO LONGER REQUIRE PEOPLE ASKING FOR AN EXTENSION FOR FILING THEIR TAX RETURNS TO MAKE PAYMENTS UPFRONT THE FILING DEADLINE IS APRIL 15 BUT TAXPAYERS CAN REQUEST A ROUTINE EXTENSION UNTIL AUG 15 ON IRS FORM 4868 NORMALLY TAXPAYERS ESTIMATE THEIR TAXES AND INCLUDE THE PAYMENT WITH THE FORM IN THE PAST FAILURE TO PAY THE TAXES WOULD INVALIDATE THE EXTENSION REQUEST SUBJECTING THE TAXPAYER TO PENALTIES FOR FAILING TO FILE A STIFF 5 A MONTH ON THE BALANCE DUE UNDER NEW PROCEDURES PEOPLE WHO CAN'T PAY THEIR TAXES BY APRIL 15 CAN STILL GET AN EXTENSION THEY SHOULD STILL INCLUDE AN ESTIMATE OF WHAT THEY OWE BUT THEY WON'T HAVE TO PAY ALL OF IT UNTIL THE SUMMER THE IRS WILL STILL COLLECT INTEREST ON ANY TAXES PAID AFTER APRIL 15 IN ADDITION IF PAYMENTS MADE BY APRIL 15 ARE LESS THAN 90 OF THE TOTAL TAX A LATE PAYMENT PENALTY OF 05 OF THE UNPAID AMOUNT PER MONTH WILL KICK IN 9304080015 930408 ETHYL'S APPLICATION FOR GASOLINE ADDITIVE GOES BACK TO EPA RICHMOND VA ETHYL CORP SAID A FEDERAL APPEALS COURT REMANDED TO THE ENVIRONMENTAL PROTECTION AGENCY AN APPLICATION THAT WOULD ALLOW IT TO SELL ITS MANGANESEBASED ADDITIVE FOR UNLEADED GASOLINE IN THE US THE MANGANESEBASED ADDITIVE WHICH HAS BEEN USED IN CANADA SINCE THE 1970S IS DESIGNED TO PREVENT ENGINE KNOCKING ETHYL'S THIRD APPLICATION TO THE EPA TO SELL THE ADDITIVE IN THE US WAS TURNED DOWN LAST YEAR THAT DECISION WAS REMANDED TUESDAY TO THE ENVIRONMENTAL REGULATORS BY THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA WHICH ORDERED THE AGENCY TO CONSIDER NEW EVIDENCE AND ISSUE A NEW DECISION WITHIN 180 DAYS ETHYL'S SHARES FELL HOWEVER 75 CENTS TO 2825 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AFTER CJ LAWRENCE & CO ANALYST DONALD PATTISON LOWERED HIS EARNINGS ESTIMATES FOR THE CHEMICAL COMPANY BECAUSE OF THE DECISION MR PATTISON SAID THAT AFTER HEARING ARGUMENTS IN THE CASE HE WAS STUNNED THAT THE COURT DIDN'T RULE THAT THE EPA ERRED IN DENYING THE APPLICATION AND THAT ETHYL SHOULD BE AUTOMATICALLY GRANTED THE APPLICATION ALTHOUGH HE REMAINS OPTIMISTIC THE EPA WILL RULE IN ETHYL'S FAVOR BY YEAR END MR PATTISON SAID HE HAD EXPECTED THE COMPANY TO WIN CLEARANCE TO BEGIN SELLING THE ADDITIVE THIS MONTH THE NEW DELAY MR PATTISON SAID PROMPTED HIM TO POSTPONE HIS EXPECTATIONS THAT THE ADDITIVE COULD INCREASE ETHYL'S PROFIT BY AT LEAST 12 MILLION THIS YEAR AND 30 MILLION IN 1994 IN 1992 ETHYL HAD NET INCOME OF 255 MILLION OR 215 A SHARE INCLUDING A 171 MILLION CHARGE FOR ACCOUNTING CHANGES AND A NET GAIN OF 242 MILLION FOR NONRECURRING ITEMS 9304080014 930408 MASSACHUSETTS THRIFT'S EXPRESIDENT ARRESTED ON FELONY CHARGES BOSTON WILFRED H CREIGHTON THE FORMER PRESIDENT OF HINGHAM INSTITUTION FOR SAVINGS WAS ARRESTED ON FELONY CHARGES RELATING TO LOANS GRANTED BY THE BANK PROSECUTORS SAID MR CREIGHTON 59 OF HINGHAM MASS WAS TERMINATED BY THE BANK IN 1989 FOR ALLEGEDLY RECEIVING UNAUTHORIZED PAYMENTS FROM REAL ESTATE BORROWERS A WOMAN ANSWERING A TELEPHONE NUMBER YESTERDAY LISTED IN MR CREIGHTON'S NAME SAID THAT HE WOULD HAVE NO COMMENT A 25COUNT INDICTMENT CHARGED THE FORMER BANKER WITH WILLFUL MISAPPLICATION OF BANK FUNDS CORRUPT RECEIPT OF PAYMENTS IN CONNECTION WITH LOANS AND FILING A FALSE TAX RETURN IT SAID THAT THE HINGHAM THRIFT INCURRED LOSSES IN EXCESS OF 24 MILLION IN CONNECTION WITH THE LOANS CITED IN THE INDICTMENT WHILE MR CREIGHTON RECEIVED MORE THAN 240000 IN ILLEGAL PAYMENTS IN CONNECTION WITH THESE LOANS 9304080013 930408 TANDY REPORTS LOSS TOTALING 283 MILLION FOR FISCAL 2ND PERIOD FORT WORTH TEXAS TANDY CORP REPORTED A NET LOSS OF 283 MILLION OR 38 CENTS A SHARE FOR THE SECOND QUARTER ENDED DEC 31 PRIMARILY BECAUSE OF CHARGES TIED TO THE COMPANY'S SPIN OFF OF ITS MANUFACTURING OPERATIONS TANDY SAID RESULTS INCLUDE A RESTRUCTURING CHARGE OF 875 MILLION INCLUDING 48 MILLION FOR TANDY AND 395 MILLION FOR TE ELECTRONICS A NEW MANUFACTURING COMPANY CREATED BY TANDY THIS YEAR THE SPIN OFF OF TE WHICH WILL HAVE ITS OWN BOARD AND MANAGEMENT TEAM IS EXPECTED TO BE COMPLETED THIS SUMMER TANDY SAID TE HAD A LOSS OF 9 MILLION IN THE FIRST SIX MONTHS OF ITS FISCAL YEAR COMPARED WITH A PROFIT OF 15 MILLION A YEAR EARLIER WILLIAM BOUSQUETTE THE NEW COMPANY'S CHIEF EXECUTIVE OFFICER BLAMED THE LOSS ON A RESTRUCTURING OF THE COMPANY'S EUROPEAN OPERATIONS INCLUDING LAYOFFS OF ABOUT 40 OF TE'S 700 EUROPEAN WORKERS AND INTENSE PRICECUTTING IN THE PERSONAL COMPUTER BUSINESS MR BOUSQUETTE SAID THE COMPANY'S PERFORMANCE IMPROVED IN THE QUARTER ENDED MARCH 31 THOUGH TE STILL WAS NOT PROFITABLE FURTHER DETAILS ABOUT THE NEW COMPANY WILL COME LATER THIS WEEK WHEN TE FILES ITS PROXY STATEMENT MR BOUSQUETTE SAID TANDY SAID ITS RESULTS ALSO INCLUDE A SEPARATE 10 MILLION CHARGE TO COVER LEGAL FEES AND OTHER COSTS RELATING TO THE TE DEAL TANDY SAID REVENUE ROSE TO 13 BILLION FROM 12 BILLION A YEAR EARLIER YEAREARLIER EARNINGS WERE 788 MILLION OR 1 A SHARE IN THE FIRST HALF NET WAS 38 MILLION OR TWO CENTS A SHARE COMPARED WITH 1206 MILLION OR 151 A SHARE A YEAR EARLIER REVENUE ROSE TO 22 BILLION FROM 21 BILLION IN NEW YORK STOCK EXCHANGE TRADING TANDY'S STOCK ROSE 1375 TO CLOSE AT 31375 A SHARE 9304080012 930408 CLINTON TO NOMINATE A HOUSTON ATTORNEY TO NO 2 ENERGY POST WASHINGTON PRESIDENT CLINTON SAID HE PLANS TO NOMINATE WILLIAM WHITE A HOUSTON ATTORNEY TO BE DEPUTY ENERGY SECRETARY MR WHITE WHOSE APPOINTMENT REQUIRES SENATE CONFIRMATION WOULD MOVE INTO THE NO 2 SPOT AT THE DEPARTMENT AND BECOME ITS CHIEF OPERATING OFFICER HE WOULD COORDINATE THE DEPARTMENT'S ENERGY PROGRAMS WEAPONSCOMPLEX CLEANUP EFFORTS AND ITS SCIENCE AND TECHNOLOGY CLUSTERS AS A PARTNER AT THE LAW FIRM SUSMAN GODFREY MR WHITE SPECIALIZED IN ANTITRUST SECURITIES AND OIL AND GAS CASES RECENTLY HE HAS BEEN CHAIRMAN OF THE CAMPAIGN OF DEMOCRATIC SEN BOB KRUEGER WHO IS RUNNING TO RETAIN THE SEAT VACATED BY LLOYD BENTSEN WHEN HE BECAME TREASURY SECRETARY MR CLINTON ALSO WILL NOMINATE JOHN SCHMIDT A CAMPAIGN FUNDRAISER AND LAWYER WHO DOESN'T SPECIALIZE IN TRADE AS THE US AMBASSADOR TO NEGOTIATE A ROUND OF TALKS SPONSORED BY THE GENEVABASED GENERAL AGREEMENT ON TARIFFS AND TRADE SOME TRADE EXPERTS WORRY THAT MR SCHMIDT'S INEXPERIENCE WILL HAMPER US EFFORTS TO FINISH THE GLOBAL TRADE TALKS WHICH HAVE BEEN DRAGGING FOR YEARS MR SCHMIDT A FORMER TOP AIDE TO CHICAGO MAYOR RICHARD M DALEY WAS A FUNDRAISER IN ILLINOIS FOR MR CLINTON AND WAS RUMORED FOR JOBS IN THE JUSTICE DEPARTMENT HE IS A SENIOR PARTNER AT THE CHICAGO OFFICE OF SKADDEN ARPS SLATE MEAGHER & FLOM MR SCHMIDT A MERGERS AND ACQUISITIONS EXPERT SAID HE WAS NOT CONCERNED ABOUT HIS LACK OF TRADE EXPERIENCE WE'RE NOT DEALING WITH ISSUES THAT ARE DARK MYSTERIES THAT ARE UNFATHOMABLE HE SAID THERE ARE COMPLEXITIES AND THERE ARE ISSUES THAT HAVE A PARTICULAR HISTORY BUT IN THE END PART OF THE JOB WOULD BE EXPLAINING IT CLEARLY TO THE PUBLIC HE ADDED THAT HE HAS EXTENSIVE NEGOTIATING EXPERIENCE 9304080011 930408 CONTINENTAL AIR PRESENTS ROSY PROFIT PICTURE CHAPTER 11 BUSINESS PLAN INCLUDES FORECAST TIED TO A STRONGER INDUSTRY BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL WILMINGTON DEL CONTINENTAL AIRLINES EXPECTED TO EMERGE THIS MONTH FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS PRESENTED A ROSY PICTURE OF FUTURE PROFITS BASED ON OPTIMISTIC EXPECTATIONS FOR THE TROUBLED AIRLINE INDUSTRY IN PRESENTING ITS BUSINESS PLAN TO THE BANKRUPTCY COURT OVERSEEING THE CONTINENTAL CASE HERE THE CARRIER PROJECTED AN OPERATING PROFIT OF 2689 MILLION IN 1994 THAT WOULD BE ITS FIRST ANNUAL OPERATING PROFIT SINCE 1986 IN ADDITION HOUSTONBASED CONTINENTAL SAID IT WILL HAVE 578 MILLION IN CASH WHEN IT EMERGES FROM PROCEEDINGS UNDER THE US BANKRUPTCY CODE LATER THIS MONTH THE CARRIER ALSO SAID ITS ROUTE SYSTEM AND FLEET WILL REMAIN ESSENTIALLY THE SAME WE BELIEVE THERE IS A HIGH PROBABILITY OF ACHIEVING PROFITABILITY AND MAINTAINING PROFITS BETWEEN NOW AND 1996 CONTINENTAL'S CHIEF FINANCIAL OFFICER JOHN E LUTH TESTIFIED AT THE HEARING HERE IN FACT CONTINENTAL PROJECTS AN OPERATING PROFIT OF 1683 MILLION FOR THE MAYTHROUGHDECEMBER PERIOD OF THIS YEAR BUT IT PROJECTS AN OPERATING LOSS OF 139 MILLION FOR THE ENTIRE YEAR BECAUSE OF OPERATING LOSSES OF 1812 MILLION IN THE FIRST FOUR MONTHS CONTINENTAL'S BUSINESS PLAN ASSUMES SOME ANALYSTS SAY OPTIMISTICALLY THAT THE US AIRLINE INDUSTRY WILL BREAK EVEN THIS YEAR AFTER THREE YEARS OF MASSIVE LOSSES IT ALSO ASSUMES THAT DOMESTIC TRAFFIC WILL INCREASE BY ABOUT 18 ANNUALLY OVER THE NEXT FEW YEARS THAT JETFUEL PRICES WILL REMAIN STABLE AND THAT THE INDUSTRY WILL INCREASE DOMESTIC FARES BY ABOUT 2 BY LATE THIS SUMMER FORECASTS FOR 1995 1996 CONTINENTAL'S BUSINESS PLAN PROJECTS OPERATING PROFITS OF 3975 MILLION IN 1995 AND 4411 MILLION IN 1996 BUT THOSE ARE PROFIT LEVELS THAT HAVEN'T BEEN ACHIEVED BY ANY US AIRLINE IN FOUR YEARS AND ONLY THEN BY FAR STRONGER LARGER CARRIERS SUCH AS AMR CORP THE PARENT OF AMERICAN AIRLINES CONTINENTAL'S PLAN CALLS FOR PAYING MOST CREDITORS A FRACTION OF WHAT THEY'RE OWED ALTHOUGH THEY WOULD GET 356 OF THE AIRLINE'S NEW EQUITY COLLAPSING THE COMPANY'S 54 UNITS INTO FOUR AND AUTHORIZING A 450 MILLION TRANSACTION GIVING EQUAL STAKES OF 275 OF EQUITY TO AIR CANADA AND AIR PARTNERS A FORT WORTH TEXAS INVESTOR GROUP AS FOR CONTINENTAL'S CASH POSITION MR LUTH SAID WE ASSUME THERE WILL BE ADEQUATE LIQUIDITY GIVEN THE ASSUMPTIONS MADE AT THE END OF THIS YEAR CONTINENTAL A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC EXPECTS TO HAVE 5892 MILLION IN CASH A NUMBER THAT WILL DWINDLE TO 378 MILLION BY YEAREND 1996 THAT IS IN PART BECAUSE CONTINENTAL EXPECTS TO BEGIN PAYING FOR AN AIRCRAFT AQUISITION THAT IS STILL BEING NEGOTIATED MR LUTH SAID IN TESTIMONY THAT THE AIRLINE EXPECTS TO COMPLETE ONE OR MORE PURCHASE AGREEMENTS BY THE TIME CONTINENTAL EMERGES FROM CHAPTER 11 THIS MONTH OVER THE NEXT SEVERAL YEARS MR LUTH SAID PURCHASES WOULD TOTAL 3 BILLION IF THOSE AGREEMENTS WERE TO BE FINALIZED CONTINENTAL HAD FIRM ORDERS FOR 5 BILLION IN AIRCRAFT WHEN IT WENT INTO CHAPTER 11 PROCEEDINGS IN DECEMBER 1990 CONTINENTAL HAS SINCE CANCELED ITS PURCHASE AGREEMENT WITH AIRBUS INDUSTRIE FOR SEVERAL DOZEN WIDEBODY JETS AS ALLOWED BY BANKRUPTCY LAW BUT CONTINUES TO NEGOTIATE WITH THE COMPANY FOR OTHER POSSIBLE PURCHASES CONTINENTAL HASN'T YET TAKEN ACTION ON ITS PREVIOUS AGREEMENT TO BUY JETS FROM BOEING CO AND A BOEING LAWYER SAID IN COURT YESTERDAY THAT THE TWO COMPANIES ARE STILL IN DISCUSSIONS UNDER CHAPTER 11 A COMPANY CONTINUES TO OPERATE BUT HAS COURT PROTECTION AGAINST CREDITOR LAWSUITS WHILE IT TRIES TO WORK OUT A PLAN FOR PAYING ITS DEBTS 9304080010 930408 TECHNOLOGY & HEALTH HYPERACTIVITY FOR FIRST TIME IS TIED TO GENETIC DEFECT AFFECTING 5 OF CASES BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS FOR THE FIRST TIME HAVE LINKED A TYPE OF HYPERACTIVITY TO A GENETIC DEFECT THE PARTICULAR DEFECT AFFECTS ONLY 5 OF HYPERACTIVITY CASES BUT OPENS UP THE POSSIBILITY THAT MUTATIONS IN OTHER GENES COULD BE RESPONSIBLE FOR OTHER FORMS OF HYPERACTIVITY WHICH AFFECTS ONE IN 20 SCHOOLAGE CHILDREN THE DEFECT INTERFERES WITH THE FIRST IN A CHAIN OF CHEMICAL REACTIONS THAT ARE IMPORTANT IN THE BRAIN DEVELOPMENT OF A FETUS AS A RESULT OF THE STUDY NEWBORN BABIES MIGHT BE SCREENED WITH A RELATIVELY SIMPLE LABORATORY TEST TO IDENTIFY THOSE WITH THE DEFECT ACCORDING TO PETER HAUSER A RESEARCHER AT THE NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY DISEASES AND THE LEAD RESEARCHER IN THE STUDY THE CHILDREN CAN THEN BE WATCHED FOR SIGNS OF THE DISORDER CALLED ATTENTION DEFICITHYPERACTIVITY DISORDER WHOSE SYMPTOMS INCLUDE RESTLESSNESS IMPULSIVENESS INATTENTION AND DISTRACTIBILITY AN AFFECTED CHILD CAN BE TREATED AT AN EARLY AGE WHEN INTERVENTION MIGHT CORRECT THE DISORDER SAID BRUCE D WEINTRAUB WHO DIRECTED THE STUDY AS CHIEF OF THE MOLECULAR AND CELLULAR ENDOCRINOLOGY BRANCH OF THE NIDDK THIS IS THE FIRST PROOF THAT THERE IS A CLEAR GENETIC CAUSE FOR THIS TYPE OF HYPERACTIVITY DR WEINTRAUB SAID THE CAUSE AND DIAGNOSIS OF HYPERACTIVITY IN CHILDREN HAD BEEN CONTROVERSIAL WITH MANY PEOPLE BLAMING NONBIOLOGICAL FACTORS SUCH AS BAD PARENTING HE SAID THE GENETIC DEFECT CAUSES ABNORMALITIES IN THE PROTEIN TO WHICH THE THYROID HORMONE BINDS THE HORMONE THEN CAN'T TRIGGER THE NORMAL CHEMICAL PROCESSES INVOLVED IN BRAIN DEVELOPMENT OF THE FETUS IN CHILDREN AND ADULTS THE CONDITION CAN BE DETECTED BY A SIMPLE LABORATORY TEST BECAUSE THE BODY COMPENSATES FOR THE PROBLEM BY OVERPRODUCING THYROID HORMONE THE CONDITION KNOWN AS GENERALIZED RESISTANCE TO THYROID HORMONE USUALLY COMES TO THE ATTENTION OF PHYSICIANS BECAUSE OF OTHER PROBLEMS IT CAUSES SUCH AS SHORT STATURE ENLARGEMENT OF THE THYROID GLAND AND CARDIAC PROBLEMS DR HAUSER SAID 9304080009 930408 BUSINESS BRIEF HARLEYSVILLE GROUP INC INSURANCE FIRM SAYS STORM REDUCED FIRST QUARTER'S NET HARLEYSVILLE GROUP INC ESTIMATED THAT LOSSES RELATED TO LAST MONTH'S EAST COAST BLIZZARD REDUCED FIRSTQUARTER NET INCOME BY 32 MILLION OR ABOUT 25 CENTS A SHARE AFTER REINSURANCE POOLING AND TAXES THE REGIONAL INSURANCE HOLDING COMPANY BASED IN HARLEYSVILLE PA EARNED 96 MILLION OR 77 CENTS A SHARE IN THE SAME PERIOD LAST YEAR IT EXPECTS TO REPORT FIRSTQUARTER EARNINGS APRIL 28 THE COMPANY SAID CLAIMS FROM FLORIDA GEORGIA NORTH CAROLINA AND SOUTH CAROLINA ACCOUNT FOR ABOUT HALF THE LOSSES HARLEYSVILLE SHARES WERE DOWN 1 YESTERDAY CLOSING AT 2950 IN NATIONAL OVERTHECOUNTER TRADING 9304080008 930408 WHO'S NEWS CONTINENTAL CORP CONTINENTAL CORP NEW YORK THIS INSURANCE AND FINANCIAL SERVICES COMPANY NAMED ROBERT STRICKER TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT FOR FIXEDINCOME INVESTMENTS AT ITS CONTINENTAL ASSET MANAGEMENT SUBSIDIARY MR STRICKER HAD BEEN SENIOR VICE PRESIDENT OF FIXEDINCOME INVESTMENTS AT THE SUBSIDIARY WHICH MANAGES MORE THAN 10 BILLION IN ASSETS CATHERINE WATERWORTH WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT TAXABLE FIXEDINCOME INVESTMENTS SHE HAD BEEN VICE PRESIDENT OF TAXABLE FIXED INCOME INVESTMENTS 9304080007 930408 MARKETING & MEDIA HARLEQUIN HOPES VIEWERS WILL WARM TO TELEVISED PASSION WILL THE WILDLY POPULAR BOOKS TRANSLATE TO SMALL SCREEN FIRM YEARNS TO HEAR YES' BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL HARLEQUIN ENTERPRISES WITH ABOUT 34 BILLION COPIES OF ITS SUGARY NOVELS IN PRINT IS BRINGING THE ROMANTIC SAGAS TO A TELEVISION SCREEN NEAR YOU WORKING WITH ALLIANCE COMMUNICATIONS CORP HARLEQUIN PLANS TO TRANSLATE TO THE SMALL SCREEN SOME OF THE MOST POPULAR OF ITS 16000 TITLES NEXT YEAR FOR STARTERS THE TALL STRONG AND HANDSOME HEROES OF SIX OF THESE BOOKS WILL COME TO LIFE IN PROGRAMS WHICH HARLEQUIN'S PROMOTIONAL LITERATURE DESCRIBES AS DESIGNED TO APPEAL TO CERTAIN KINDS OF PASSIONATE WOMEN SUBSEQUENT COLLECTIONS OF AS MANY AS 13 TV MOVIES EACH COULD FOLLOW THE PARTNERS SAY HARLEQUIN HAS DABBLED IN BRINGING ITS BOOKS TO THE SCREEN BEFORE BUT THE ALLIANCE VENTURE IS THE LARGEST OF ITS KIND UNDER THE TERMS OF THE AGREEMENT ALLIANCE A CLOSELY HELD MOVIE AND TELEVISION PRODUCTION COMPANY WILL HAVE INTERNATIONAL TELEVISION RIGHTS TO ALL OF HARLEQUIN'S TITLES CBS INC IS THE FIRST TELEVISION NETWORK TO JOIN THE PROJECT AND THE PARTNERS HOPE TO BRING OTHER NORTH AMERICAN AND EUROPEAN BROADCASTERS ON BOARD FORMING A ROMANCE TELEVISION SYNDICATE TO FINANCE THE FILMING ALLIANCE WAS ATTRACTED TO THE PROJECT BY HARLEQUIN'S EXPERTISE IN THE MASSMARKETING OF ITS BOOKS 155 MILLION OF WHICH WERE SOLD IN NORTH AMERICA ALONE LAST YEAR HARLEQUIN HAS AMASSED AN INCREDIBLY LARGE AND LOYAL READERSHIP WHOSE DEMOGRAPHICS ARE READILY IDENTIFIABLE AND HIGHLY DESIRABLE SAID MICHAEL WESBARTH SENIOR VICE PRESIDENT TELEVISION FOR ALLIANCE AFTER THE MOVIES HAVE BEEN SHOWN ON TELEVISION THEY LIKELY WILL BE RELEASED ON VIDEOCASSETTE SAID STEVEN DENURE VICE PRESIDENT OF CREATIVE AFFAIRS AT ALLIANCE PART OF OUR DEAL WITH HARLEQUIN WILL ALLOW US TO BENEFIT FROM THEIR DIRECT MARKETING OF BOOKS MR DENURE SAID WE MAY BE DOING THINGS LIKE BOOKCLUBS SELLING ON RACKS IN SUPERMARKETS OR PRINTING COUPONS IN BOOKS FOR THE VIDEOS HARLEQUIN HOPES THAT THE MOVIES SOME OF WHICH WILL BE SHOT IN EUROPEAN LOCALES WILL SATISFY READERS' CRAVINGS TO SEE THEIR FAVORITE TALES ON THE SCREEN THIS IS SOMETHING OUR READERS HAVE ALWAYS TOLD US THAT THEY WANT TO SEE OUR MOVIES SAID KATHERINE ORR SPOKESWOMAN FOR HARLEQUIN A UNIT OF TORSTAR CORP A TORONTO PUBLISHING CONCERN THE FIRST ATTEMPTS TO DO SO FIZZLED BUDGETS WERE EXCEEDED DISTRIBUTION AND PROMOTION WERE PROBLEMATIC AND THE THREE HARLEQUINBASED FILMS RELEASED A DECADE AGO IN THE US WERE FINANCIAL FLOPS THIS TIME MS ORR SAYS SHE IS LOOKING FORWARD TO A HAPPIER ENDING SHE SAID THE MOVIES WILL BE PROMOTED THROUGH HARLEQUIN'S DIRECT MARKETING NETWORK WHILE THE FIRST SIX MOVIES ARE BUDGETED AT ONLY 3 MILLION EACH ALLIANCE HOPES TO SIGN UP MORE SPONSORS AT A BROADCASTERS GATHERING IN CANNES FRANCE NEXT WEEK THE COMPANY BASED IN TORONTO HAS A LONG LIST OF SIMILAR COPRODUCTIONS TO ITS CREDIT WITH MOST MAJOR US AND CANADIAN BROADCASTERS HARLEQUIN CURRENTLY PUBLISHES ABOUT 60 NEW TITLES EVERY MONTH IN 23 LANGUAGES 9304080006 930408 BUSINESS BRIEF ROCHE HOLDING LTD EXPLOSION AT US FACILITY INJURES TWO EMPLOYEES HOFFMANNLA ROCHE INC SAID AN EXPLOSION IN A WATERTREATMENT BUILDING AT ITS NUTLEY NJ PLANT INJURED TWO WORKERS A SPOKESMAN FOR THE DRUG AND CHEMICAL CONCERN SAID THE BLAST BLEW OUT THE WINDOWS OF THE BUILDING ONE EMPLOYEE WHO WAS INSIDE THE BUILDING WAS TREATED AT THE SCENE FOR CUTS AND RELEASED AND THE SECOND EMPLOYEE WHO WAS OUTSIDE THE BUILDING WAS TREATED FOR CUTS AND TAKEN TO A NEARBY HOSPITAL THE SPOKESMAN SAID HE SAID THE INJURIES WERE MINOR HE SAID THE COMPANY SUSPECTS THAT LEVELS OF TOLUENE AN INDUSTRIAL SOLVENT THAT IS NORMALLY PRESENT IN ITS WATER AND SEWER LINES BUILT UP AND IGNITED THE BUILDING HOUSES A JUNCTION OF SEVERAL COMPANY WATER AND SEWER LINES THE COMPANY IS INVESTIGATING THE TOLUENE LEVELS BUT THE SOURCE OF THE IGNITION WASN'T YET KNOWN HOFFMANNLA ROCHE IS THE US UNIT OF SWISS PHARMACEUTICAL AND CHEMICAL COMPANY ROCHE HOLDING LTD 9304080005 930408 LABOR DEPARTMENT BUDGET WOULD CUT OUTLAYS BUT CREATE OR EXPAND PROGRAMS BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION UNVEILED A 376 BILLION LABOR DEPARTMENT BUDGET FOR FISCAL 1994 THAT WOULD CUT OVERALL OUTLAYS BY 45 BILLION WHILE AT THE SAME TIME CREATING OR GREATLY EXPANDING JOBTRAINING AND ASSISTANCE PROGRAMS THE PROPOSED BUDGET REFLECTS THE ADMINISTRATION'S EMPHASIS ON INVESTMENTS IN OUTOFWORK PEOPLE AT A TIME WHEN THE ECONOMY IS RECOVERING BUT POSTING MEAGER EMPLOYMENT GAINS THIS IS A JOBLESS RECOVERY AND THERE'S A LOT OF PAIN OUT THERE LABOR SECRETARY ROBERT REICH TOLD A NEWS CONFERENCE MR REICH WHO ANNOUNCED HIS DEPARTMENT'S BUDGET A DAY BEFORE THE SCHEDULED RELEASE OF THE ADMINISTRATION'S ENTIRE BUDGET SAID SOMETHING MUST BE DONE ABOUT THE UNEMPLOYMENT RATE NOW STUCK AT 7 HIS PROPOSALS FOR FISCAL 1994 WHICH WILL BEGIN OCT 1 INVOLVE 75 BILLION FOR JOBTRAINING AND ASSISTANCE PROGRAMS A RISE OF 17 BILLION FROM CURRENT SPENDING THE PROPOSALS PART OF THE ADMINISTRATION'S LIFELONG LEARNING CONCEPT ARE A MIX OF TRADITIONAL BIGTICKET PROGRAMS AS WELL AS LESS COSTLY MORE INNOVATIVE ONES THEY INCLUDE THE DECLINE IN OVERALL DEPARTMENTAL SPENDING WOULD RESULT MAINLY FROM A DISCONTINUATION OF THE UNEMPLOYMENT TRUST FUND WHICH LABOR OFFICIALS SAID WOULDN'T BE NEEDED BECAUSE OF THE OTHER PROPOSED PROGRAMS THEY ALSO SPECIFIED ABOUT 90 MILLION IN SAVINGS FROM SUCH THINGS AS ELIMINATING 21 FULLTIME POSITIONS THROUGH ATTRITION FREEZING FEDERAL EMPLOYEES PAY REDUCING THE NUMBER OF ADVISORY COMMITTEES CLOSING THE EXECUTIVE DINING ROOM AND REDUCING EXECUTIVE CARPOOL PRIVILEGES BUT EVEN WITH SUCH SPENDING CUTS CLINTON OFFICIALS WILL FACE A BATTLE WITH REPUBLICANS OVER HOW MUCH SPENDING IS NEEDED OR AVAILABLE TO PUT PEOPLE BACK TO WORK 9304080003 930408 BUSINESS BRIEF INTERGRAPH CORP COMPANY EXPECTS TO POST OPERATING LOSS FOR QUARTER INTERGRAPH CORP SAID IT EXPECTS TO REPORT A FIRSTQUARTER OPERATING LOSS ON LOWERTHANEXPECTED REVENUE AND SHRINKING PROFIT MARGINS THE HUNTSVILLE ALA COMPUTER COMPANY SAID IT WILL POST A LOSS OF 51 MILLION TO 64 MILLION OR 11 CENTS TO 13 CENTS A SHARE BEFORE A CHARGE OF THREE CENTS A SHARE FOR RESTRUCTURING AND NONOPERATING ITEMS THE COMPANY HAD NET INCOME OF 29 MILLION OR SIX CENTS A SHARE A YEAR EARLIER INTERGRAPH ESTIMATED THAT REVENUE WAS BETWEEN 280 MILLION AND 285 MILLION UP FROM 2772 MILLION BUT STILL LOWER THAN EXPECTED THE COMBINATION OF SLOWING SALES GAINS AND PRICE REDUCTIONS ON OLDER PRODUCTS LED TO REDUCED GROSS PROFIT MARGINS IN THE PERIOD THE COMPANY SAID THEY HAVE A PRODUCT TRANSITION GOING ON AND THERE'S NOTHING MORE PERISHABLE IN THIS WORLD THAN AN OLDER GENERATION OF COMPUTER SAID ROBERT G HERWICK AN ANALYST AT HAMBRECHT & QUIST IN SAN FRANCISCO 9304080002 930408 WHAT'S NEWS WORLDWIDE MUSLIM LEADERS CLEARED AN EVACUATION OF CIVILIANS FROM A BOSNIAN TOWN THE UN SAID OFFICIALS IN THE BESIEGED MUSLIM ENCLAVE OF SREBRENICA APPROVED THE PARTIAL EVACUATION WHICH STILL MUST BE APPROVED BY SERBS BLOCKADING THE TOWN THE UN COMMANDER IN BOSNIA WAS ALREADY ON HIS WAY TO SREBRENICA IN AN ATTEMPT TO DEPLOY PEACEKEEPING TROOPS MEANWHILE A RUSSIAN ENVOY MET WITH SERBIA'S MILOSEVIC AND BOSNIA'S SERB LEADER TO DISCUSS PEACE EFFORTS IN BRUSSELS NATO TEMPORARILY PUT OFF APPROVAL OF PLANS TO USE FIGHTER JETS TO ENFORCE A BOSNIA NOFLY ZONE WORLD COURT OFFICIALS SAID THEY WOULD RULE TODAY ON BOSNIA'S REQUEST FOR EMERGENCY PROTECTION AGAINST WHAT IT CLAIMS IS GENOCIDE BY THE SERBS NEW YORK GOV CUOMO INFORMED CLINTON IN A LETTER DATED YESTERDAY THAT HE DOESN'T WANT TO BE CONSIDERED FOR A SEAT ON THE SUPREME COURT CUOMO TOLD THE PRESIDENT HE WANTED TO REMAIN AS GOVERNOR TO HELP NEW YORK'S ECONOMIC RECOVERY CLINTON'S AIDES SAID HE IS AT LEAST A MONTH AWAY FROM MAKING HIS CHOICE A FEDERAL JUDGE IN LOS ANGELES SEEMED TO RAISE THE POSSIBILITY OF A DEADLOCKED JURY IN THE RODNEY KING BEATING TRIAL BUT LATER BACKED AWAY FROM THE SUGGESTION SEPARATELY A STATE COURT JUDGE AGREED TO DELAY UNTIL JULY 14 THE TRIAL OF MEN ACCUSED OF BEATING A TRUCK DRIVER DURING LAST YEAR'S RIOTS YELTSIN TOLD A VISITING US CONGRESSIONAL DELEGATION THAT HE PLANS TO TRAVEL ACROSS RUSSIA TO RALLY SUPPORT BEFORE AN APRIL 25 REFERENDUM ON HIS LEADERSHIP THE 15 LAWMAKERS ALSO MET WITH YELTSIN'S MAIN POLITICAL RIVAL PARLIAMENT SPEAKER KHASBULATOV RUSSIA'S DEFENSE MINISTER ANNOUNCED THAT RUSSIAN ARMY UNITS WILL STAY IN GEORGIA UNTIL 1995 AND THAT THE WARRING SIDES IN THE GEORGIAN PROVINCE OF ABKHAZIA HAVE AGREED TO DISENGAGE THEIR FORCES A VAT CONTAINING URANIUM EXPLODED AT A SECRET NUCLEAR FUEL PLANT IN SIBERIA CONTAMINATING AN UNDETERMINED AREA OF LAND RUSSIAN OFFICIALS SAID THAT RADIATION LEVELS WERE LOW AND THAT THERE WERE NO INJURIES FROM TUESDAY'S ACCIDENT A RUSSIAN OFFICIAL DISMISSED COMPARISONS WITH THE 1986 CHERNOBYL PLANT DISASTER RESEARCHERS FOR THE FIRST TIME LINKED A TYPE OF HYPERACTIVITY TO A GENETIC DEFECT THE DEFECT AFFECTS 5 OF HYPERACTIVITY CASES BUT OPENS UP THE POSSIBILITY THAT MUTATIONS IN OTHER GENES COULD BE RESPONSIBLE FOR OTHER FORMS OF HYPERACTIVITY AS A RESULT OF THE STUDY NEWBORNS MIGHT BE SCREENED FOR THE DEFECT MACEDONIA WAS APPROVED FOR UN ADMISSION BY THE SECURITY COUNCIL AFTER A LONG DISPUTE WITH GREECE OVER THE SYMBOLISM OF THE FORMER YUGOSLAV REPUBLIC'S NAME AND FLAG THE GENERAL ASSEMBLY WILL VOTE TODAY GREECE HAS OBJECTED THAT THE NAME MACEDONIA IMPLIES TERRITORIAL CLAIMS ON A NORTHERN GREEK PROVINCE OF THE SAME NAME IRISH PRESIDENT MARY ROBINSON JOINED BRITAIN'S PRIME MINISTER MAJOR AND HUNDREDS OF OTHER MOURNERS AT A MEMORIAL SERVICE IN ENGLAND FOR TWO YOUNG BOYS KILLED BY IRA BOMBS HER APPEARANCE WAS AN UNPRECEDENTED GESTURE BY AN IRISH HEAD OF STATE AND UNDERSCORED THE RISING OPPOSITION TO THE OUTLAWED IRISH REPUBLICAN ARMY NORTH KOREA'S PARLIAMENT VOWED TO FIGHT PRESSURE TO REJOIN A NUCLEAR NONPROLIFERATION TREATY OTHER NATIONS HAVE BEEN USING DIPLOMACY AND WARNINGS OF POSSIBLE SANCTIONS TO PERSUADE PYONGYANG TO REJOIN THE PACT JESSE JACKSON SAID HE IS NO LONGER INTERESTED IN HEADING THE NAACP CITING A MOVE BY SOME BOARD MEMBERS TO WEAKEN THE POST OF EXECUTIVE DIRECTOR HIS WITHDRAWAL CAME AS MEMBERS OF THE CIVIL RIGHTS ORGANIZATION WEIGHED HIS CANDIDACY THE BOARD IS TO VOTE TOMORROW ON A SUCCESSOR TO BENJAMIN HOOKS WHO IS RETIRING THIS MONTH A FEDERAL GRAND JURY INDICTED A FIFTH MAN BILAL ALKAISI ON CHARGES OF PARTICIPATING IN THE FEBRUARY BOMBING OF THE WORLD TRADE CENTER MEANWHILE THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY ESTIMATED ITS COSTS FROM THE EXPLOSION AT 378 MILLION ISRAEL'S ARMY FIRED MISSILES AT A HOUSE IN THE GAZA STRIP TO FORCE THE SURRENDER OF TWO PALESTINIANS WANTED FOR ATTACKS ON SOLDIERS SEPARATELY A PALESTINE LIBERATION ORGANIZATION AIDE SAID THERE IS ROOM FOR NEGOTIATION BEFORE THE PLO DECIDES WHETHER TO RESUME PEACE TALKS 9304080001 930408 THE GOP A DEFINING MOMENT BY JUDE WANNISKI ON THE FACE OF IT THE REPUBLICAN FILIBUSTER IN THE SENATE HAS BEEN ENORMOUSLY SUCCESSFUL THE GOP HAS HELD TOGETHER WITHOUT A SINGLE DEFECTION IN PREVENTING A VOTE ON PRESIDENT CLINTON'S 195 BILLION ECONOMIC STIMULUS PACKAGE THE WHITE HOUSE HAS RAISED A WHITE FLAG AND SAYS IT IS WILLING TO COMPROMISE THE REPUBLICANS GRINNING FROM EAR TO EAR FOR THE FIRST TIME IN MANY MOONS ARE PATTING THEMSELVES ON THE BACK APPARENTLY UNAWARE OF THE TRAP PRESIDENT CLINTON'S CLEVER STRATEGISTS HAVE PREPARED FOR THEM WHAT IS IT THE REPUBLICANS WANT IN ORDER TO PERMIT A VOTE ON THE CLINTON PLAN DO THEY WANT TO CUT IT IN HALF WILL THEY SETTLE FOR A 15 BILLION PLAN 13 BILLION THE FACT IS THE WHITE HOUSE DOESN'T REALLY CARE THE DEMOCRATS WANT THE REPUBLICANS TO WIN THIS FIGHT AS LONG AS IT REMAINS A FIGHT OVER HOW MANY DOLLARS TO SPEND THE OBJECTIVE IS TO GET THE REPUBLICANS TO GIVE UP THE STRONGEST POSITION THEY WILL HAVE THIS YEAR PERHAPS THE STRONGEST POSITION THEY WILL HAVE FOR THE NEXT FOUR YEARS IF THEY CAN GET THEM TO DO THIS FOR ANY PART OF THE 195 BILLION THEY WILL GLADLY DO SO AS THE AMOUNTS OF MONEY WE ARE TALKING ABOUT HERE ARE TRIVIAL COMPARED TO THE POLITICAL STAKES PRESIDENT CLINTON IS ABOUT TO PURCHASE AN INSURANCE POLICY FOR A FEW DOLLARS ONE THAT WILL ENABLE HIM TO BLAME THE REPUBLICANS FOR ANY WEAKNESS THAT OCCURS IN THE ECONOMY FROM NOW THROUGH THE 1994 ELECTIONS CAPITOL HILL IS ALREADY AWASH WITH CROCODILE TEARS FROM SENATE MAJORITY LEADER GEORGE MITCHELL DISTRAUGHT BECAUSE THE DASTARDLY REPUBLICANS ARE BLOCKING THE VERY FIRST CRITICAL INITIATIVE OF THE NEW PRESIDENT HOW CAN THEY BE SO MEAN SO CRUEL SO PARTISAN PRESIDENT CLINTON CAN MAKE NO CLAIM FOR A PORKBARREL LEGISLATIVE MANDATE BUT HE CAN STILL FIX IN THE PUBLIC'S MIND THE IDEA THAT THE GOP CRIPPLED HIS ECONOMIC PROGRAM BY CUTTING 3 BILLION OR 5 BILLION OR 8 BILLION FROM IT AS THE MAN ON THE STREET HAS NO IDEA HOW BIG 3 BILLION OR 5 BILLION IS THE DEMOCRATS WILL EMERGE FROM THIS GOP LEGISLATIVE VICTORY BY ADVISING THEIR CONSTITUENTS FROM COAST TO COAST THAT THE REASON THE ECONOMY REMAINS WEAK IS THAT THE FUNDS TARGETED FOR THEIR HOMETOWNS WERE DENIED BY THE HARDHEARTED REPUBLICANS THIS IS EXACTLY HOW THE DEMOCRATS BECAME THE DOMINANT PARTY IN THE YEARS OF PRESIDENT ROOSEVELT'S NEW DEAL WHICH OF COURSE IS THE MODEL OF THE CLINTON ADMINISTRATION'S BRAIN TRUST CHIEFLY JAMES CARVILLE AND PAUL BEGALA THE TOUGHEST PART OF THE STRATEGY IS TO SOMEHOW GET THE SENATE REPUBLICANS TO ACCEPT THE PRINCIPLE OF INCREASING SPENDING AS A MEANS OF LOWERING THE BUDGET DEFICIT FROM THEN ON THE REPUBLICANS WILL NEVER AGAIN BE ABLE TO UNIFY AS EFFECTIVELY AS THEY HAVE TO THIS POINT THEY WILL BE ABLE TO CONGRATULATE THEMSELVES FOR BEING THE PARTY OF FISCAL RESPONSIBILITY FOR WANTING TO SPEND LESS WHICH IS THE MINORITY ROLE THE GOP PLAYED THROUGHOUT THE DEPRESSION YEARS WHAT SHOULD THE REPUBLICANS DEMAND IN EXCHANGE FOR AN END TO THE FILIBUSTER SENATE MINORITY LEADER BOB DOLE SAYS THE PRICE HE WILL ASK WILL BE BIG HE IS NOT THINKING BIG ENOUGH HOWEVER THE SENATE REPUBLICANS SHOULD ASK FOR NOTHING LESS THAN TOTAL ELIMINATION OF THE CAPITALGAINS TAX NOT A CUT NOT INDEXATION ELIMINATION INSTEAD OF PLAYING ALONG WITH THE DEMOCRATIC AGENDA OF SOCIALIST INVESTMENT OF TAXPAYERS' MONEY REPUBLICANS SHOULD BE MAKING THE CASE FOR CAPITALIST INVESTMENT ON CNN'S CROSSFIRE THIS WEEK SEN TRENT LOTT R MISS AND PAT BUCHANAN MADE EXACTLY THIS POINT IN THEIR EXCHANGE WITH SEN DIANNE FEINSTEIN D CALIF AND MICHAEL KINSLEY THE MOST INTERESTING EXCHANGE I'VE WITNESSED ON THE ECONOMIC DEBATE ALL YEAR ARE WE TO HAVE A NATION OF PRIVATE RISKTAKING VIA INVESTMENT OF INDIVIDUAL SAVINGS OR ARE WE GOING TO BE A NATION OF COLLECTIVE RISKTAKING VIA GOVERNMENT INVESTMENT OF TAX REVENUES THIS IS THE KIND OF ARGUMENT THE REPUBLICANS CAN WIN BUT AS FAR AS I CAN TELL ONLY SEN LOTT AND REP DICK ARMEY R TEXAS ARE MAKING IT THE DEMOCRATS WOULD SCREAM BLOODY MURDER IF THIS WERE THE GOP CHALLENGE DURING THIS DEFINING MOMENT PRESIDENT CLINTON THOUGH WOULD INSTANTLY HAVE LOST HIS INSURANCE POLICY AS HE WOULD NO LONGER BE ABLE TO ARGUE THAT THE GOP BLOCKED HIS SOLUTION WITHOUT OFFERING ONE OF ITS OWN INDEED THIS SINGLE THRUST WOULD THROW THE ENTIRE CLINTON ECONOMIC PLAN INTO A TAILSPIN IS ANY OF THIS GOING TO HAPPEN ALMOST CERTAINLY NOT WITH A FEW EXCEPTIONS SENATE REPUBLICANS REMAIN COWED BY THE FAIRNESS ISSUE A FACT THAT IS THE KEYSTONE OF MR CARVILLE'S STRATEGY HE KNOWS THE REPUBLICANS ARE AFRAID OF WHAT SHOULD BE THEIR STRONGEST ISSUE THE KEY TO RAPID ECONOMIC GROWTH THROUGH ENTREPRENEURIAL CAPITALISM ALL GROWTH INCLUDING POLITICAL GROWTH IS THE RESULT OF RISKTAKING AT THE MOMENT BECAUSE THE GOP IS RISKAVERSE WE CAN EXPECT NO GROWTH FROM GOP LEADERSHIP SEN DOLE WILL CUT A DEAL WITH SEN MITCHELL ON THE SPENDING ISSUE LEADING HIS FLOCK LIKE LAMBS TO THE SLAUGHTER SEVERAL BILLION DOLLARS WILL BE WHACKED FROM THE CLINTON PACKAGE BUT HALF OF THAT WILL BE RESTORED IN THE CONFERENCE COMMITTEE WITH THE HOUSE THE REPUBLICANS WILL CONGRATULATE THEMSELVES ON THEIR GREAT VICTORY ON BEHALF OF FISCAL RESPONSIBILITY AND THE DEMOCRATS WILL CRY ALL THE WAY TO THE BANK MR WANNISKI IS PRESIDENT OF THE CONSULTING GROUP POLYCONOMICS FROM WHOSE APRIL 6 NEWSLETTER THIS WAS EXCERPTED 9304080127 930303 CLINTON ENERGY TAX WORSE THAN IT SEEMS BY TERENCE L BARNICH PRESIDENT CLINTON'S ENERGY TAX PROPOSAL IS FUNDAMENTALLY DISCRIMINATORY AND GRANTS A MASSIVE ARTIFICIAL ADVANTAGE FOR NATURAL GAS MR CLINTON HAS PROPOSED A BTUBASED TAX OF NEARLY 60 CENTS FOR EVERY MILLION BTUS OF ENERGY CONTENT CONTAINED IN OIL AND ABOUT 26 CENTS FOR THE COMPARABLE ENERGY CONTENT IN OTHER RAW FUELS PUTTING ASIDE THE MORE THAN DOUBLE BTU TAX RATE FOR OIL THE TAX IMPOSES GROSS DISPROPORTIONALITY IN THE TAX BURDEN ON DIFFERENT ENERGY SOURCES USED FOR ELECTRIC GENERATION BECAUSE DIFFERENT FUELS CONTAIN QUITE DIFFERENT ENERGY CONTENT RELATIVE TO THEIR PRICES THE BTU TAX AMOUNTS TO ABOUT A 10 SALES TAX ON NATURAL GAS A 24 SALES TAX ON COAL AND A 50 SALES TAX ON URANIUM FOR NUCLEAR POWER PLANTS THEREBY ANOINTING NATURAL GAS AS THE GOVERNMENT'S FUEL OF CHOICE THE PRESIDENT HAS EVEN DECIDED TO IMPOSE THE TAX ON AN IMPUTED BTU BASIS ON WATER USED FOR PRODUCTION OF HYDROELECTRIC POWER EVEN THOUGH THE COST OF RIVER WATER FLOWING THROUGH ELECTRIC TURBINES IS ZERO MR CLINTON'S BTUBASED TAX MUST HAVE BEEN CONSCIOUSLY DESIGNED TO PUSH THE MARKET TOWARD GAS AND AWAY FROM COAL HYDRO AND URANIUM AFTER ALL HIS STATED REASONS FOR ADVANCING THE ENERGY TAX ARE SO TRANSPARENT AND FALSE THE PRESIDENT FIRST CLAIMS THAT ENERGY IN AMERICA IS UNDERTAXED RELATIVE TO TAX LEVELS IN OTHER DEVELOPED COUNTRIES BUT THAT SIMPLY IS NOT TRUE WHILE GASOLINE IS MORE HEAVILY TAXED IN EUROPE AND JAPAN THE EUROPEANS CONTINUE TO PROVIDE MASSIVE TAX SUBSIDIES FOR ENERGY AND UTILITY FUELS THE EUROPEAN INDUSTRIAL NATIONS TAKE FULL ADVANTAGE OF THE EUROPEAN COMMUNITY'S RULES PERMITTING THEM TO SUBSIDIZE THEIR ENERGY SECTOR BY UP TO 20 OF COST IN BRITAIN FOR INSTANCE COAL IS THE ANNUAL BENEFICIARY OF NEARLY 2 BILLION IN EXPLICIT PRICE SUPPORTS AND THE GOVERNMENT APPLIES ITS EC SUBSIDY ALLOCATION TO PROP UP THE BRITISH NUCLEAR INDUSTRY MOST EC COUNTRIES MANDATE COAL PURCHASES BY UTILITIES AN INDIRECT FUEL SUBSIDY THAT LEAVES ENVIRONMENTAL PROTECTION AS THE CLINTONGORE TRUMP CARD FOR JUSTIFYING THE TAX BUT IF THE GREENHOUSE EFFECT IS THE GREATEST CHALLENGE FACING HUMANITY AS VICE PRESIDENT GORE TELLS US IN EARTH IN THE BALANCE WHY IS THE HEAVIEST PROPORTIONAL TAX RELATIVE TO DELIVERED FUEL PRICE PLACED ON THE TWO FUELS THAT PRODUCE NO GREENHOUSE GASES NUCLEAR AND HYDRO PERHAPS THERE IS A MORE STREETWISE UNSTATED POLITICAL EXPLANATION FOR THE TILT TOWARD GAS IT IS NO SECRET NATURAL GAS IS A FAVORITE OF THE PRESIDENT WHITE HOUSE CHIEF OF STAFF MACK MCCLARTY OF COURSE IS ONLY ONE MONTH OUT OF HIS JOB AS CEO OF ONE OF THE COUNTRY'S PROMINENT NATURAL GAS PIPELINE AND LOCAL UTILITY COMPANIES SO FAR THE CLINTON ADMINISTRATION HAS FOLLOWED THE OLD RULE THAT THE BEST WAY TO MAKE SURE THE HOUNDS DON'T FOLLOW YOU IS FOR ANOTHER FOX TO CROSS YOUR PATH THE TREASURY DEPARTMENT HAS TRIED TO FOCUS THE DISCUSSION SOLELY ON THE DIRECT EFFECTS OF THE TAX TELLING MIDDLECLASS AMERICANS THAT THE BTU TAX WILL COST ROUGHLY 225 A MONTH ON A 65 MONTHLY HOUSEHOLD UTILITY BILL AND 75 CENTS PER GALLON OF GASOLINE LEAVING THE AVERAGE AMERICAN FAMILY ONLY WORSE OFF BY 17 A MONTH THE PROMISE IS THAT MUCH MORE VALUE WILL MAGICALLY FLOW BACK TO AMERICAN CONSUMERS IN THE FORM OF A REDUCED DEFICIT OR THE SATISFACTION FOR HAVING CONTRIBUTED IF NOTHING ELSE IN ADDITION TO THE MISREPRESENTATION OF THE BTU TAX AS FAIR AND EVENHANDED THE NUMBERS BEING DRIBBLED OUT BY TREASURY EXPLAINING THE EFFECT ON CONSUMERS FOCUS ONLY ON THE DIRECT COSTS TO ENERGY ENDUSERS BUT HOUSEHOLD DIRECT ENERGY COSTS ARE BUT A SMALL FRACTION OF THE IMPACT OF THE ENERGY TAX A NEW TAX THAT INCREASES UNDERLYING NATURAL GAS COSTS BY 10 COAL BY 24 NUCLEAR FUEL BY 50 AND HYDRO BY HEAVEN KNOWS WHAT AMOUNT WILL DRAMATICALLY ECHO THROUGHOUT THE ECONOMY IF THIS IS THE PRESIDENT'S IDEA OF THE COURAGE TO CHANGE THEN CALL ME CHICKEN MR BARNICH IS A PUBLIC UTILITY COMMISSIONER IN ILLINOIS SEE RELATED LETTER LETTERS TO THE EDITOR WITH HYDROPOWER COSTS TRICKLE UP WSJ APRIL 7 1993 9303030061 9304080092 930301 TECHNOLOGY & HEALTH REAPPOINTMENT OF KESSLER AS FDA CHIEF SIGNALS CONTINUED VIGOROUS REGULATION BY HILARY STOUT AND ROSE GUTFELD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE REAPPOINTMENT OF DAVID KESSLER AS COMMISSIONER OF THE FOOD AND DRUG ADMINISTRATION PROBABLY MEANS THE AGENCY'S REGULATION OF THOSE INDUSTRIES WILL CONTINUE TO BE AT LEAST AS VIGOROUS AND PROMINENT AS IT HAS BEEN FOR THE PAST TWO YEARS DR KESSLER'S CAMPAIGNS INCLUDING HIS CRACKDOWN ON MISLEADING CLAIMS BY FOOD AND DRUG MANUFACTURERS AND HIS PUSH TO OVERHAUL NUTRITIONLABELING RULES OCCASIONALLY DREW HIM INTO CONFLICT WITH THE WHITE HOUSE UNDER PRESIDENT BUSH SUCH EFFORTS ARE LIKELY TO BE MORE WELCOMED BY THE CLINTON ADMINISTRATION ON FRIDAY OFFICIALS SAID PRESIDENT CLINTON HAD ASKED DR KESSLER TO STAY ON THAT SAME DAY ANOTHER TOP HEALTH OFFICIAL APPOINTED BY PRESIDENT BUSH BERNADINE HEALY ANNOUNCED HER RESIGNATION AS DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH FORCED OUT BY THE NEW ADMINISTRATION UNDER PRESSURE FROM SOME DEMOCRATIC MEMBERS OF CONGRESS DR HEALY HAS BEEN IN OFFICE LESS THAN TWO YEARS AND HAD HOPED TO STAY ON UNDER PRESIDENT CLINTON BUT THOUGH MANY OF HER GOALS SUCH AS INCREASING RESOURCES FOR WOMENS' HEALTH RESEARCH WERE SHARED BY THE NEW ADMINISTRATION SHE WAS RESENTED BY SOME CONGRESSIONAL DEMOCRATS PARTICULARLY COLORADO REP PATRICIA SCHROEDER FOR HER WILLINGNESS TO GO ALONG WITH THE BUSH ADMINISTRATION'S CONTROVERSIAL HEALTH POLICIES IN PARTICULAR DR HEALY PUBLICLY SUPPORTED THE BUSH ADMINISTRATION'S BAN ON FEDERALLY FINANCED RESEARCH USING FETAL TISSUE EVEN THOUGH SHE PERSONALLY OPPOSED IT MOREOVER THOUGH SHE SET UP AN OFFICE OF RESEARCH ON WOMEN'S HEALTH AT THE NIH SHE TOED THE WHITE HOUSE LINE IN OPPOSING LEGISLATION REQUIRING MANY EPIDEMIOLOGICAL STUDIES AND CLINICAL TRIALS BE LARGE ENOUGH TO DETERMINE WHETHER THE OUTCOME WAS SEEN IN WOMEN AND MINORITIES DR HEALY WHO IS THE FIRST WOMAN EVER TO HEAD THE NIH PLANS TO REMAIN IN HER POST UNTIL JUNE 30 SHE WILL RETURN TO THE CLEVELAND CLINIC FOUNDATION WHERE SHE WAS A CARDIOLOGIST BEFORE COMING TO WASHINGTON THE NIH CLAIMS A PIECE OF MY SOUL AND WILL ALWAYS HAVE A PLACE IN MY HEART SHE SAID AT A NEWS CONFERENCE FRIDAY A SUCCESSOR HASN'T BEEN NAMED WHILE DR KESSLER'S HIGHPROFILE CAMPAIGNS HAVE RUFFLED SOME IN INDUSTRY THE DECISION TO RETAIN HIM WAS WELCOMED BY ACTIVIST GROUPS WHO HAD PUSHED FOR IT AS WELL AS BY MANY INDUSTRY GROUPS WE'RE GOING TO SEE A CONTINUATION OF A REVITILIZATION OF FDA WHICH IS GOOD FOR THE AGENCY AND GOOD FOR CONSUMERS SAID JEFFREY NEDELMAN A SPOKESMEN FOR THE GROCERY MANUFACTURERS ASSOCIATION AT TIMES WE WOULD HAVE PREFERRED A LESSPUBLIC ENFORCEMENT POLICY BUT IT HAS HAD AN IMPACT AMONG THE MAJOR ISSUES FACING THE FDA AND DR KESSLER WHO HAS HEADED THE AGENCY SINCE 1990 ARE FOOD SAFETY IN THE WAKE OF THE POISONING DEATHS IN THE WEST THE CONTINUING EMERGENCE OF NEW BIOTECHNOLOGY PRODUCTS AND THE PUSH BY MEDICALDEVICE MAKERS AND OTHERS FOR FASTER REVIEW OF NEW PRODUCTS THE PRESIDENT ALSO IS EXPECTED TO NAME ISABEL SAWHILL AN ECONOMIST AND SENIOR FELLOW AT THE URBAN INSTITUTE TO BE ASSOCIATE DIRECTOR OF THE WHITE HOUSE BUDGET OFFICE FOR HUMAN RESOURCES VETERANS AND LABOR SEE RELATED LETTER LETTERS TO THE EDITOR WHEN SHOWN TOBACCO FDA DOG WON'T HUNT WSJ APRIL 7 1993 9303010062 9304080037 930323 REVIEW & OUTLOOK EDITORIAL THE DEMOCRATIC HERD CONGRESSIONAL DEMOCRATS NOW LINING UP TO PASS WHAT THE PRESS LIKES TO CALL PRESIDENT CLINTON'S ECONOMIC PLAN REMIND US OF THE WILDEBEEST IN NATIONAL GEOGRAPHIC TV SPECIALS THE GREAT HERDS MAY NOT KNOW WHERE THEY'RE GOING BUT THEY FIGURE IF THEY DON'T KEEP MOVING SOMETHING WILL EAT THEM DEMOCRATS MAY WONDER ABOUT MR CLINTON'S DIRECTION BUT THEY'RE DEATHLY AFRAID TO STOP AND BUCK A NEW DEMOCRATIC PRESIDENT THEIR SALES PITCH IS IT'S PART OF THE PRESIDENT'S OVERALL PLAN AND WE CAN'T LET THE WHOLE THING FAIL IT'S THAT KIND OF A GUILT TRIP SAID MINNESOTA REPRESENTATIVE TIM PENNY LAST WEEK BY WAY OF EXPLAINING THE DEMOCRATIC LEADERSHIP'S STRATEGY MR PENNY IS USUALLY A SPENDING HAWK BUT HE DECIDED TO JOIN 242 OTHER HOUSE DEMOCRATS IN FOLLOWING HIS PRESIDENT INTO THE TAXANDSPEND RAPIDS OF THE ZAMBEZI RIVER LAST WEEK MANY OF THESE DEMOCRATS UNDERSTAND THAT THE ENTIRE CLINTON PROPOSAL IS A TRIUMPH OF POLITICAL INSTINCT OVER ECONOMIC REASON HOW ELSE TO DESCRIBE A PROPOSAL THAT WOULD SOMEHOW REDUCE THE DEFICIT BY SPENDING 16 BILLION MORE IN A SOCALLED FISCAL STIMULUS OR SLASH THE DEFICIT FURTHER BY INCREASING SPENDING ON DOMESTIC DISCRETIONARY PROGRAMS BY 31 THROUGH 1998 ACCORDING TO AN ANALYSIS BY TIM MURIS FOR THE AMERICAN ENTERPRISE INSTITUTE OR SOMEHOW GROW THE ECONOMY BY LEVYING A 246 BILLION TAX INCREASE THE LARGEST IN AMERICAN HISTORY SUCH LOGIC EXPLAINS WHY THE PLAN'S BIGGEST SUPPORTERS ARE THE SAME BEASTS WHO MADE THE CURRENT FISCAL MESS WE WANT A NEW DAY FOR OUR COUNTRY DECLARED MAJORITY LEADER RICHARD GEPHARDT AS IF HE NEVER VOTED FOR A TAXANDSPEND PLAN BEFORE HOUSE LIBERALS THEN THREATENED TO SCUTTLE THE ENTIRE PACKAGE IF EVEN A LITTLE BIT OF THE 16 BILLION STIMULUS WAS SCALED BACK THE LIBERALS STAMPEDED MEMBERS WHO HAD CRITICIZED THE STIMULUS AS PORK BARREL TEXAS REPRESENTATIVE CHARLIE STENHOLM AND FRIENDS WONDERED ABOUT THE NEED FOR A JOBS STIMULUS IN AN ECONOMY THAT SOMEHOW PRODUCED 365000 NEW PRIVATE JOBS ALL BY ITSELF LAST MONTH THE REBELS ALSO NOTED THAT THE CLINTON STIMULUS CONTAINED SUCH RENOWNED JOB CREATORS AS 25 BILLION IN COMMUNITY DEVELOPMENT BLOCK GRANTS FOR 890 BIGCITY MAYORS 423 MILLION IN AID FOR THE HOMELESS AND SEVERAL HUNDRED MILLION MORE TO KEEP KIDS RAKING LEAVES THEY ALSO OBJECTED THAT THE STIMULUS WAS LABELED AN EMERGENCY UNDER THE BUDGET RULES THEREBY LETTING IT EVADE SPENDING CAPS AND ADDING IT DIRECTLY TO THE DEFICIT THEY'RE SUPPOSED TO BE REDUCING THIS IS A VERY DANGEROUS AMENDMENT WHISPERED ONE DEMOCRATIC AIDE TO THE WASHINGTON POST ABOUT THE STENHOLM INSURGENCY SO DANGEROUS IN FACT THAT THE LEADERSHIP BARRED MR STENHOLM FROM EVEN OFFERING IT THE LEAFRAKING DEFICIT REDUCTION BILL EVENTUALLY PASSED WITH THE VOTES OF ALL BUT 11 HOUSE DEMOCRATS THOUGH WITHOUT EVEN A SINGLE REPUBLICAN A SIMILAR NONDRAMA WILL UNFOLD THIS WEEK IN THE SENATE WHERE IT'S NO ACCIDENT THAT WEST VIRGINIA'S ROBERT BYRD TURNS OUT TO BE THE BIGGEST SUPPORTER OF THE FISCAL STIMULUS A FEW MIDWEST SENATORS ARE TRYING TO IMITATE MR STENHOLM AT LEAST FOR LONG ENOUGH TO PLAY THE HEADLINES BACK HOME FOR THEIR REELECTION PLANS WISCONSIN SENATOR HERB KOHL FOR ONE HAS FOR THE FIRST TIME IN FOUR YEARS DISCOVERED A SPENDING BILL HE DOESN'T LIKE HE FACES A TOUGH ELECTION IN 1994 BUT MAJORITY LEADER GEORGE MITCHELL VOWS TO PREVAIL AND HE PROBABLY WILL THE SPECIAL IRONY HERE IS THAT MR CLINTON'S FORMAL BUDGET HASN'T EVEN BEEN SUBMITTED YET IT WON'T BE DELIVERED TO CONGRESS UNTIL APRIL 7 OR 8 SO FAR IT'S A PORKANDMIRRORS BUDGET EVEN THE TAX PROPOSALS ARE STILL BEING CRUNCHED BY GNOMES AT THE TREASURY SAM NUNN WHO WORRIES ABOUT THE DEFENSE BUDGET FALLING TOO FAST COMPLAINS THAT HE HASN'T EVEN SEEN THE REAL BUDGET NUMBERS YET WHAT THE HOUSE AND SENATE ARE NOW PASSING IS A CREATURE OF THE BELTWAY CALLED A BUDGET RESOLUTION THIS IS MERELY AN OUTLINE OF A BUDGET A SORT OF PROMISE TO FILL IN THE BLANKS LATER IN ITS RESOLUTION THE HOUSE PROMISES TO REDUCE THE DEFICIT BY 510 BILLION OVER FIVE YEARS MEMBERS WILL VOTE ON THE SPECIFIC SPENDING CUTS LATER SOME REPORTERS ARE ACTUALLY REPORTING THIS WITH A STRAIGHT FACE REAL CONGRESSIONAL NATURE LOVERS MAY RECALL THE LAST GREAT TAXANDSPEND MIGRATION IN 1990 A SIMILAR RESOLUTION THAT YEAR PROMISED TO REDUCE THE DEFICIT BY 500 BILLION ALAS A REVENUE DROUGHT AND SPENDING DELUGE MADE THE DEFICIT EVEN BIGGER AND MORE THAN ONE GIANT WILDEBEEST TOOK A FALL IN 1992 IF IT HAPPENS AGAIN DEMOCRATS WON'T HAVE A REPUBLICAN TO BLAME IT ON SEE RELATED LETTER LETTERS TO THE EDITOR MAVERICK WSJ APRIL 7 1993 9303230087 9304080004 930310 GIVE THE UNITED NATIONS ITS DUES BY PAUL VOLCKER EVERY DAY SOBERING NEWS FROM YUGOSLAVIA SOMALIA AND CAMBODIA ASSAULTS OUR CONSCIOUSNESS THERE ARE INCESSANT DEMANDS ON THE UNITED NATIONS TO DO SOMETHING IN STILL OTHER PLACES SOME WITH STRANGE NAMES IN UNFAMILIAR REGIONS TAJIKISTAN MYANMAR NAGORNOKARABAKH ANCIENT ANTAGONISMS AND NEW CONFLICTS SMOLDER THREATENING PEACEFUL DEVELOPMENT WE HEAR LESS THESE DAYS FROM OLDER TROUBLE SPOTS LIKE EL SALVADOR NAMIBIA AND THE GOLAN HEIGHTS IN SUBSTANTIAL PART THAT IS BECAUSE UN PEACEKEEPING FORCES HAVE BEEN ON THE SPOT DOING SOMETHING IN MOST SUCH INSTANCES WE HAVE COME TO LOOK TO THE UN FOR AN APPROPRIATE RESPONSE THAT RESPONSE HAS BEEN LARGELY EFFECTIVE IN A WAY THAT NO PURELY NATIONAL OR EVEN REGIONAL RESPONSE COULD BE FAR FROM THE EXAGGERATED IMAGE OF AN IMPOTENT TALKING SHOP PREVALENT WHEN THE COLD WAR FRUSTRATED DECISIONMAKING THE UN NOW FINDS ITSELF IN AN INCREASINGLY OPERATIONAL ROLE PLAINLY AFTER NEARLY 50 YEARS THE ORGANIZATION HAS COME MUCH CLOSER TO THE POTENTIAL ITS FOUNDERS ENVISIONED AT THE END OF WORLD WAR II BUT THE UN'S ABILITY TO RESPOND TO NEW CHALLENGES ESPECIALLY IN PEACEKEEPING IS BEING UNDERCUT BY THE PRECARIOUS AND EXCEEDINGLY NARROW FINANCIAL BASE IT INHERITED FROM AN EARLIER ERA THIS IS THE FINDING OF THE FORD FOUNDATION'S INTERNATIONAL ADVISORY GROUP WHICH I HAD THE HONOR OF COCHAIRING WITH SHIJURO OGATA FORMER PRESIDENT OF THE JAPAN DEVELOPMENT BANK THE 11 MEMBERS ALL WIDELY EXPERIENCED IN INTERNATIONAL AFFAIRS AND FINANCE AND BROADLY REPRESENTATIVE OF DIFFERENT PARTS OF THE WORLD AGREED ON MEASURES THAT CAN AND SHOULD BE TAKEN TO STRENGTHEN THE UN'S FINANCIAL BASE THE PREMISE OF THESE PROPOSALS IS THAT THE SECURITY COUNCIL AND THE SECRETARYGENERAL MUST HAVE ASSURANCE THAT FUNDS WILL BE AVAILABLE WHEN THEY ARE REQUIRED AT PRESENT THAT IS SIMPLY NOT THE CASE THE RECURRENT REGULAR EXPENSES OF THE UN FOR THE GENERAL ASSEMBLY THE SECRETARIAT THE INTERNATIONAL COURT AND THE LIKE HAVE BEEN COVERED ONLY BY DEPLETING RESERVES AND BY UNORTHODOX BORROWING FROM OTHER ACCOUNTS THESE EXPEDIENTS HAVE NOW BEEN EXHAUSTED A MORE DIFFICULT AND DANGEROUS SITUATION EXISTS WITH RESPECT TO THE UN'S PEACEKEEPING FORCES THE DEMANDS FOR WHICH ARE UNPREDICTABLE AND WHEN THEY DO APPEAR URGENT THE STARTUP PHASE OF A PEACEKEEPING MISSION IS USUALLY THE MOST COSTLY AND DELAYS ONLY CRIPPLE CHANCES FOR SUCCESS THE ARRIVAL OF FORCES ON THE GROUND IS ALSO THE TIME OF GREATEST DANGER FOR THE MEN AND WOMEN INVOLVED WHEN THE NEED FOR TRAINED PERSONNEL AND NEW SUPPLIES IS MOST URGENT AS THINGS STAND EACH MISSION HAS TO BE STARTED FROM SCRATCH THE SECRETARYGENERAL HAS ONLY LIMITED FUNDS AT HIS DISPOSAL FOR AIRLIFTS AND ESSENTIAL EQUIPMENT FOR THE REST HE MUST WAIT UNTIL THE UN'S LENGTHY BUDGETARY DELIBERATIONS ARE COMPLETE NATIONAL GOVERNMENTS ARE ASSESSED FOR FUNDS AND THOSE ASSESSMENTS ARE PAID THERE IS NO CONTINUING TRAINING PROGRAM BASE OF LOGISTICAL SUPPORT OR ADEQUATE STOCK OF EQUIPMENT TO DRAW UPON EACH OPERATION BEGINS CATCH AS CATCH CAN OFTEN NATIONAL FORCES MUST FILL THE GAPS IMPAIRING EFFICIENCY AND RISKING CONFUSION ABOUT THE UN'S ROLE THE ADVISORY GROUP'S PROPOSALS DO NOT REQUIRE STRIKING NEW DEPARTURES FROM THE UN CHARTER OR ANY LOSS OF FINANCIAL DISCIPLINE THEY DO REQUIRE THAT MEMBER STATES RESPECT THEIR TREATY OBLIGATION TO SUPPORT BUDGETARY DECISIONS OF THE GENERAL ASSEMBLY THOSE DECISIONS IT SHOULD BE EMPHASIZED ARE NOW REACHED BY CONSENSUS THUS THE INTERESTS OF THE LARGER COUNTRIES WHICH ARE INEVITABLY CALLED UPON FOR THE GREAT BULK OF RESOURCES ARE FULLY REFLECTED THE ADVISORY GROUP CALLS UPON GOVERNMENTS TO PAY THEIR ASSESSMENTS ON TIME TO MAKE UP FOR PAST SHORTFALLS AND TO REPLENISH AND ENLARGE THE UN'S RESERVES IT IS IN THESE AREAS THAT THE US WHILE NOT ALONE HAS BEEN THE SINGLE LARGEST LAGGARD ALTHOUGH SUBSTANTIAL PROGRESS HAS BEEN MADE IN CLEARING US ARREARS MORE NEEDS TO BE DONE QUITE APART FROM THE SIZE OF THE 240 MILLION US SHORTFALL US ACTION IS CRITICAL IT CAN SET AN EXAMPLE OF FISCAL RESPONSIBILITY FOR OTHER COUNTRIES ANOTHER SET OF RECOMMENDATIONS ADDRESSES THE NEED FOR MORE RAPID AND EFFECTIVE DEPLOYMENT OF PEACEKEEPING FORCES WHEN NEW OPERATIONS ARE APPROVED THE GROUP RECOMMENDS SETTING UP AN ADEQUATE RESERVE FUND FROM WHICH THE SECRETARYGENERAL CAN DRAW TO INITIATE MISSIONS WHEN THEY ARE AUTHORIZED BY THE SECURITY COUNCIL AND IT RECOMMENDS ANNUAL APPROPRIATIONS FOR TRAINING AND LOGISTICAL SUPPORT THE ADVISORY GROUP WAS ACUTELY AWARE THAT ADEQUATE UN FINANCING IS DEPENDENT ON CONFIDENCE THAT FUNDS WILL BE WELL SPENT WE HAVE BEEN ENCOURAGED BY CLEAR EVIDENCE THAT THE CURRENT SECRETARYGENERAL FULLY UNDERSTANDS THE NEED TO IMPROVE THE UN'S MANAGEMENT THE GROUP ALSO EMPHASIZED THE KEY ROLE THAT MEMBER STATES THEMSELVES HAVE IN SUPPORTING THIS EFFORT IN THE END WE CANNOT ESCAPE THE FACT THAT THE OPERATIONS OF THE UN DO COST MONEY BUT THOSE REQUIREMENTS NEED TO BE KEPT IN PERSPECTIVE ALL THE CURRENT PEACEKEEPING EXPENDITURES OF THE UN SPREAD OVER 13 OPERATIONS TOTALED 14 BILLION IN 1992 ABOUT A 10TH OF 1 OF THE TOTAL DEFENSE BUDGETS OF MEMBER STATES AND LESS THAN THE ANNUAL COST OF THE POLICE FORCE IN THE UN'S HOME CITY OF NEW YORK THE ENTIRE REGULAR BUDGET OF THE UN WAS 12 BILLION LESS THAN THE AVERAGE COST OF ONE STEALTH BOMBER SUCCESSFUL DIPLOMACY IS AN ENORMOUS BARGAIN IN FINANCIAL AS WELL AS HUMAN TERMS AND WHEN DIPLOMACY NEEDS TO BE REINFORCED BY A MILITARY PRESENCE THERE IS NO ALTERNATIVE AS ECONOMICAL AS THE UN'S BLUE HELMETS FOR THEIR COST IS SHARED BY EVERY GOVERNMENT IN THE WORLD NO COUNTRY HAS MORE AT STAKE IN SUCCESSFUL PEACEKEEPING THAN THE US WHETHER THE COST IS MEASURED IN DOLLARS OR THE RISK TO THE MEN AND WOMEN IN ITS ARMED FORCES IT IS SUCH SIMPLE PROPOSITIONS THAT JUSTIFY AND REQUIRE THAT THE NATIONS OF THE WORLD TURN THEIR ATTENTION TO REPAIRING THE FINANCES OF THEIR UN SEE RELATED LETTER LETTERS TO THE EDITOR US PAYS FOR TOO MANY BLUE HELMETS WSJ APRIL 7 1993 9303100094 9304070155 930407 THE RECONSTRUCTION OF THE TRADE CENTER HAS BEEN A TALL TASK REPAIRING THE BOMBED TOWERS REQUIRES SKILL PATIENCE AND LOTS OF CLEANING FLUID BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ON FRIDAY FEB 26 EUGENE FASULLO AN ENGINEER AT THE WORLD TRADE CENTER HERE WAS TRAPPED IN A STALLED ELEVATOR WITH SEVERAL OTHERS AFTER A TERRORIST BOMB RIPPED THROUGH THE LOWER LEVELS OF THE TWIN TOWERS AFTER JIMMYING OPEN THE ELEVATOR DOORS THE GROUP FOUND ITSELF FACING A BLANK WALL SMOKE WAS SEEPING INTO THE ELEVATOR AND MANY BELIEVED THEY WOULD SUFFOCATE THEN MR FASULLO REMEMBERED THAT THE WALLS WERE MADE OF GYPSUM AND STEEL STUDS NOT CONCRETE USING KEYS PAPER CLIPS AND NAIL CUTTERS THE GROUP SPENT THREE HOURS CHISELING THROUGH TWO WALLS THEY CUT OUT A HOLE LARGE ENOUGH FOR ALL OF THEM TO CRAWL THROUGH THEY EMERGED INTO A BATHROOM AND THEN CLIMBED DOWN 58 FLIGHTS OF STAIRS TO THE TRADE CENTER'S MAIN CONCOURSE STOPPING EN ROUTE TO HELP OTHERS LEAVE THE BUILDING MR FASULLO MADE HIS WAY TO THE BLAST SITE DESCENDING INTO THE FLOODED PARKING GARAGE BENEATH THE VISTA HOTEL THERE HE SAW THE CRATER ABOUT 125 FEET IN DIAMETER IT WOULDN'T BE HIS ONLY VIEW FOR THE LAST FIVE WEEKS MR FASULLO HAS BEEN DIRECTING THE ENGINEERS WHO ARE REBUILDING THE 110STORY SKYSCRAPERS ONE OF THE MOST FORMIDABLE REHABILITATIONS EVER IT HAS REQUIRED 4000 WORKERS AND WILL COST HUNDREDS OF MILLIONS OF DOLLARS THE EXCAVATION OF THE BOMB CRATER ALONE REQUIRED REMOVING 4000 TONS OF DEBRIS SOOT REMOVAL REQUIRED 20000 GALLONS OF CLEANING FLUID ADDING TO THE PRESSURE THE COMPLEX NORMALLY ACCOMMODATES 50000 WORKERS AND EMPLOYERS HAVE BEEN DESPERATE TO GET THEM BACK TO THEIR DESKS THE CATASTROPHE HAS ATTRACTED THE WORLD'S ATTENTION AND ALL RECONSTRUCTION WORK HAD TO AVOID HAMPERING THE LARGE INVESTIGATION INTO THE TERRORIST ATTACK THE 61YEAROLD MR FASULLO WORN DOWN BY LONG HOURS CONSTANT MEDIA QUESTIONING AND FREQUENT ENGINEERING SNAFUS LIKENS THE REBUILDING PROCESS TO SURVIVING A MILITARY ENCOUNTER IT'S PROBABLY THE MOST COMPLEX SET OF CONDITIONS TO WORK WITH AND IT POSES AMAZING MANAGERIAL PROBLEMS MR FASULLO SAYS IT BECOMES LIKE ONE LONG DAY WHERE YOU JUST EAT AND SLEEP AND WORK IN A TIME WARP AND LOSE TRACK OF DAYS TO BE SURE NOT ALL THE EFFORTS OF THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY THE PUBLIC AGENCY THAT OWNS AND OPERATES THE TRADE CENTER HAVE BEEN THIS SUCCESSFUL OVER THE PAST YEAR DISCLOSURES OF BUNGLED ATTEMPTS TO UPDATE JOHN F KENNEDY INTERNATIONAL AIRPORT AND OTHER USES OF THE AGENCY'S FUNDS HAVE EMBARRASSED ONE OF THE COUNTRY'S PREMIER PUBLIC BUILDERS BUT SOME SAY THIS CRISIS HAS REVIVED THE 72YEAROLD AGENCY WHICH HAS HAD FIVE FACILITIES DESIGNATED AS NATIONAL ENGINEERING LANDMARKS THE WORLD TRADE CENTER BOMBING HAS TURNED OUT TO BE A PHENOMENAL ENERGIZER OF THE PORT AUTHORITY SAYS MITCHELL MOSS DIRECTOR OF NEW YORK UNIVERSITY'S URBAN RESEARCH CENTER THIS HAS BEEN THE FIRST TIME IN A LONG TIME IT HAS BEEN ABLE TO DEMONSTRATE JUST HOW EFFECTIVE AND EFFICIENT AN ORGANIZATION IT CAN BE WHEN THE BLAST HIT MR FASULLO HAD BEEN THE PORT AUTHORITY'S CHIEF ENGINEER FOR ONLY A YEAR BUT HE HAD WORKED FOR THE AUTHORITY FOR 35 YEARS INDEED HE WORKED ON DESIGNS FOR THE TRADE CENTER WHEN IT WAS FIRST PROPOSED IN THE EARLY 1960S BECAUSE THE TRADE CENTER'S TWIN TOWERS WERE BUILT USING EXCEPTIONALLY STRONG EXTERIOR COLUMNS MR FASULLO SAYS HE WASN'T WORRIED THAT THE BLAST THREATENED EITHER STRUCTURE BUT MANY OF THE COLUMNS SUPPORTING THE VISTA HOTEL WHICH SITS ADJACENT TO THE TOWERS HAD BEEN DANGEROUSLY COMPROMISED AND NEEDED TO BE BRACED HE CONTACTED SOME OF THE COMPANIES THAT HELPED BUILD THE TRADE CENTER AND BY 3 AM SATURDAY ABOUT 15 HOURS AFTER THE BLAST THEY HAD WORKED OUT A GENERAL PLAN FOR REPAIRING THE COMPLEX POWER HAD BEEN RESTORED EARLIER THAT EVENING WE HAD THOSE BUILDINGS LIT UP WITH ELECTRICITY THAT VERY FIRST NIGHT MR FASULLO RECALLS PART OF IT WAS TO GET THE BUILDINGS WARM SO THE PIPES WOULDN'T FREEZE BUT IT WAS ALSO A SYMBOL THAT WE HAD SURVIVED THE ATTACK ALMOST TWO MILLION GALLONS OF WATER HAD POURED INTO THE CRATER FROM A DESTROYED PIPE THAT HAD CARRIED WATER FROM THE HUDSON RIVER TO THE AIRCONDITIONING UNITS ON SATURDAY WORKERS FROM TURNER CONSTRUCTION INC THE COMPLEX'S CONSTRUCTION MANAGER BEGAN HAULING SIX PUMPS WEIGHING 200 TO 600 POUNDS EACH DOWN FOUR FLIGHTS OF STAIRS TO THE CRATER'S WELL THEY PUMPED AROUND THE CLOCK FOR THREE DAYS BEFORE ALL OF THE WATER WAS REMOVED AS THE WATER WAS PUMPED OUT THE TEAM MR FASULLO HAD ASSEMBLED WAS READY TO SHORE UP THE DAMAGED COLUMNS WITH BRACES BUT THE FEDERAL BUREAU OF INVESTIGATION INSISTED THAT IT BE ALLOWED TO EXAMINE THE SITE FIRST IT WAS THE FIRST OF MANY OCCASIONS WHERE THE NEEDS OF THOSE REBUILDING THE TRADE CENTER CONFLICTED WITH THE NEEDS OF INVESTIGATORS LOOKING FOR THE BOMBERS' TRAIL ON SUNDAY NIGHT WORK BEGAN ON THE FIRST OF ABOUT 180 BRACES ATTACHED TO COLUMNS BENEATH THE HOTEL OTHER STEEL PARTS ALSO WERE MANUFACTURED TO BUTTRESS OR REPLACE THOSE DAMAGED BY THE BLAST THIS REBUILDING IS EXTRAORDINARY BECAUSE EVERYTHING WAS JUST BLOWN APART SAYS JOHN DALY PRESIDENT OF KARL KOCH ERECTING CO WHICH DID THE STEEL WORK IT'S SIMILAR TO A DOCTOR HAVING TO SEW UP A WOUND THAT WAS TORN OPEN ON A FENCE AS OPPOSED TO SEWING UP A RAZOR BLADE CUT WE'RE DOING PLASTIC SURGERY THE NEXT TASK FACING THE ENGINEERS THE WEEKEND OF THE BLAST WAS DECIDING WHICH SUBWAY LINES WERE SAFE TO USE SEISMOGRAPHS WERE PLACED AROUND A FEW OF THE LINES CLOSEST TO THE BLAST SITE AND TEST TRAINS WERE RUN TO DETERMINE IF THEIR RUMBLINGS MIGHT CAUSE ADDED DAMAGE TO WEAKENED PORTIONS OF THE TRADE CENTER ALL OF THE LINES WERE DEEMED SAFE READY FOR THE MONDAY MORNING RUSH HOUR ON MONDAY A PHALANX OF WORKERS BEGAN DESCENDING ON THE TRADE CENTER BY THE TIME THE REBUILDING AND CLEANUP REACHED ITS PEAK LATER IN THE WEEK ABOUT 45 CONTRACTING AND CONSULTING FIRMS WERE WORKING ON THE COMPLEX AS THE CLEANUP PROGRESSED REMOVING DEBRIS FROM THE CRATER PROVED TO BE ONE OF THE THORNIEST TASKS WORKERS CUT THROUGH THE PILE IN THE CRATER USING ACETYLENE TORCHES AND JACKHAMMERS IN THE EARLY STAGES OF DEBRIS REMOVAL HUGE HUNKS OF CONCRETE DANGLED FROM STRANDS OF REINFORCEMENT BAR AT THE LIP OF THE CRATER WORKERS ON THE SITE WORRIED THAT AN INOPPORTUNE REMOVAL OF A SLAB OR A BEAM MIGHT CAUSE A MINOR AVALANCHE LOADS BEING PULLED UP FROM THE PIT WERE SO HEAVY THAT A 28TON CRANE WAS USED ANYTHING SMALLER MIGHT HAVE BEEN DRAGGED DOWN INTO THE HOLE FLATBEDS WERE BROUGHT IN ON THE SUBWAY RAILS TO HELP CART OFF DEBRIS AND SUPPLY THE CLEANUP EVEN COSMETIC JOBS WERE DAUNTING TO CLEAN SOOT FROM THE TOWERS 2700 PEOPLE DIRECTED BY THE TRADE CENTER'S OPERATIONS CHIEF CHARLES MAIKISH WORKED AROUND THE CLOCK FOR ABOUT 10 DAYS THEIR UNDERTAKING REQUIRED 44000 PAIRS OF RUBBER GLOVES 152000 SPONGES AND 500000 CLEANING RAGS ACCORDING TO THE PORT AUTHORITY WHEN THE WEATHER BECAME AN OBSTACLE AS IT DID TWO WEEKS AFTER THE BLAST WHEN A BLIZZARD BURIED NEW YORK DOZENS OF WORKERS AND ENGINEERS SLEPT ON COTS INSIDE THE TRADE CENTER SO THEY WOULDN'T BE CUT OFF FROM THE SITE MANY MORE SPENT NIGHTS AT NEARBY HOTELS SO THEY COULD BE CLOSE TO THE JOB DESPITE ALL OF THESE LOGISTICAL NIGHTMARES BOTH TOWERS HAD BEEN REOPENED TO TENANTS TWO WEEKS AGO ABOUT 90 OF THE TENANTS IN ONE TOWER AND 50 IN THE OTHER HAVE REOCCUPIED THEIR OLD OFFICES THE PORT AUTHORITY EXPECTS THE REMAINDER TO BE BACK BY LATE THIS MONTH THE AGENCY ADDS THAT TENANTS WILL BE RETURNING TO A BETTER COMPLEX NOW THAT ITS OPERATIONS STAFF HAS FITTED IT WITH MOBILE COMMUNICATIONS SYSTEMS BATTERYPOWERED LIGHTING AND IMPROVED SECURITY GETTING THE AIR CONDITIONING ONLINE AND REOPENING THE VISTA HOTEL ARE STILL MAJOR HURDLES PLANS CALL FOR THE VISTA TO REOPEN BY MIDSUMMER THE BREAKNECK PACE OF THE REBUILDING EFFORT HAS BEEN DRIVEN BY THE NEED TO REVIVE THE TOWERS' AIRCONDITIONING SYSTEM WHICH HAD BEEN BURIED IN THE EXPLOSION THE ENGINEERS SAY THEY HOPE TO HAVE THE CHILLERS WORKING BY EARLY NEXT MONTH AT LEAST THREE OF THE SEVEN AIRCONDITIONING UNITS NOW DUG OUT FROM THE RUBBLE MAY BE REPAIRABLE AND AS A BACKUP A TEMPORARY SYSTEM IS BEING CONSTRUCTED ON A STREET OUTSIDE THE TRADE CENTER TO TURN IT AROUND IN A MONTH IS AWESOME ABSOLUTELY AWESOME SAYS GARY WOOD MANAGER OF A CHICAGO HIGHRISE THAT WAS BADLY DAMAGED AFTER FLOODED SERVICE TUNNELS CLOSED MUCH OF THAT CITY'S FINANCIAL DISTRICT LAST YEAR YOU TEND TO THINK OF ENGINEERS AS STRAIGHTARROW GUYS YOU KNEW IN COLLEGE WHO USED SLIDE RULES AND HAD LOTS OF PENS IN THEIR POCKETS SAYS RICHARD LEONE CHAIRMAN OF THE PORT AUTHORITY IT COMPLETELY RENEWS YOUR RESPECT FOR THEM WATCHING THEM AT WORK HERE FOR HIS PART MR FASULLO SAYS THAT THE REBUILDING EFFORT IS MERELY ONE MORE EXAMPLE OF THE PORT AUTHORITY DOING WHAT IT HAS ALWAYS DONE ENGINEER HE HAS ALSO ESTABLISHED AN ORGANIZATION TO PROMOTE GREATER INVOLVEMENT BY ENGINEERS IN FORMULATING A PLAN FOR RENEWING THE NATION'S BATTERED INFRASTRUCTURE MEANWHILE MR FASULLO'S TRADE CENTER SCHEDULE REMAINS RELENTLESS HE HAS BEEN WORKING SO HARD THAT HE HAS HAD LITTLE TIME TO CONTEMPLATE THE FACT THAT HE ALMOST DIED THE DAY OF THE BLAST RECENTLY AS HE LAY ON A COUCH IN HIS HOME WATCHING VIDEOTAPES HIS WIFE MADE OF THE INITIAL BOMBING REPORTS HE BEGAN TO CRY NONETHELESS HE HOLDS ON TO THE BENT CAR KEY HE USED TO BURROW THROUGH THE ELEVATOR SHAFT AS A MEMENTO OF HIS BRUSH WITH DEATH HE SAYS IT IS ALSO A REMINDER OF A UNIQUE ENGINEERING CHALLENGE THAT IN SOME WAYS HE WILL MISS I LIKE TO THINK OF MYSELF AS SOMEONE WHO'S DEDICATED TO BEAUTY EXCELLENCE AND THE EXCITEMENT OF DESIGN BECAUSE ENGINEERING IS ABSOLUTELY ESSENTIAL TO SOCIETY FUNCTIONING WELL HE SAYS AND I'M PROUD WE GOT THIS COMPLEX UP AND RUNNING SO SOON 9304070154 930407 ECONOMY OUTPUT DATA BOLSTER OPEC'S PRICING STANCE OIL FUTURES DROP ON REPORT OF KUWAIT'S COMPLAINTS ABOUT OVERPRODUCTION BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FURTHER EVIDENCE OF A SHARP DROP IN OIL PRODUCTION HAS CONVINCED SENIOR OPEC OFFICIALS THAT PETROLEUM PRICES SHOULD HOLD RELATIVELY FIRM DESPITE YESTERDAY'S DECLINES THE INTERNATIONAL ENERGY AGENCY YESTERDAY ESTIMATED THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PRODUCED SLIGHTLY LESS THAN 244 MILLION BARRELS A DAY IN MARCH THAT WAS DOWN SUBSTANTIALLY FROM FEBRUARY OUTPUT OF 255 MILLION BARRELS A DAY OIL PRICES DROPPED YESTERDAY NEVERTHELESS IN FUTURES TRADING CRUDE OIL FOR MAY DELIVERY FELL 32 CENTS A BARREL IN NEW YORK AND 28 CENTS IN LONDON TRADERS GENERALLY CITED A TECHNICAL CORRECTION AFTER RECENT PRICE GAINS THOUGH SOME SELLING WAS TRIGGERED BY REPORTS KUWAIT HAD PROTESTED TO OPEC ABOUT OVERPRODUCTION BY SOME OTHER MEMBERS STILL THE FIGURES RELEASED BY THE INTERNATIONAL ENERGY AGENCY IN PARIS YESTERDAY HELPED TO CONFIRM EARLIER BUT PRELIMINARY INDUSTRY REPORTS THAT OPEC'S OUTPUT HAD FALLEN SUBSTANTIALLY MEANWHILE ALIRIO PARRA OPEC'S PRESIDENT AND VENEZUELA'S OIL MINISTER AND OPEC'S SECRETARYGENERAL SUBROTO SAID IN INTERVIEWS HERE THAT INTERNAL REPORTS BY THE OIL EXPORTERS SUGGEST TOTAL OUTPUT IS EVEN LOWER THAN THE INTERNATIONAL ENERGY AGENCY AND INDUSTRY ESTIMATES BOTH WERE IN LONDON TO ADDRESS THE ANNUAL CONFERENCE OF THE CENTRE FOR GLOBAL ENERGY STUDIES AN ENERGY THINK TANK FOUNDED BY AHMED ZAKI YAMANI THE FORMER OIL MINISTER OF SAUDI ARABIA MR PARRA SAID HE THINKS OPEC PRODUCTION HAS DECLINED TO AROUND 24 MILLION BARRELS A DAY IT HAS GONE DOWN WELL OVER A MILLION BARRELS A DAY SINCE FEBRUARY HE SAID THE LOWER OUTPUT IS HELPING TO ERASE THE EARLIER FEARS OF A POSSIBLE PRICE COLLAPSE BECAUSE OF AN OIL OVERSUPPLY THESE SUPPLY CUTS HAVE GONE A LONG WAY TO STEADYING THE MARKET AND HOPEFULLY TO IMPROVING PRICES AS WE GO INTO THIS QUARTER MR PARRA SAID CURRENT OPEC OUTPUT STILL IS ABOVE THE CEILING OF 236 MILLION BARRELS A DAY SET BY THE OIL MINISTERS IN FEBRUARY BUT THE INTERNATIONAL ENERGY AGENCY NOTED THAT THE DECLINE OF 11 MILLION BARRELS A DAY IN MARCH OUTPUT WAS THE LARGEST MONTHTOMONTH DROP IN OPEC PRODUCTION SINCE JANUARY 1989 EXCLUDING THE 1990 DISRUPTIONS FROM THE PERSIAN GULF CRISIS BOTH SAUDI ARABIA AND KUWAIT EACH CUT CRUDE PRODUCTION SOME 300000 BARRELS A DAY IN MARCH THE ENERGY AGENCY SAID BUT SEVERAL OTHERS WERE ABOVE THEIR QUOTAS IRAN WHICH HAS A QUOTA OF 33 MILLION BARRELS A DAY PRODUCED 300000 A DAY MORE THE AGENCY ADDED KUWAITI OIL OFFICIALS PREVIOUSLY COMPLAINED BITTERLY OF HAVING TO CUT OUTPUT TO THEIR NEW OPEC ALLOTMENT OF 16 MILLION A DAY FROM TWO MILLION BARRELS A DAY STILL THEY HAD PROMISED TO ABIDE BY THE QUOTAS AS LONG AS OTHERS DID THE SAME LETTER FROM KUWAIT BUT YESTERDAY ALI ALBAGHLI KUWAIT'S OIL MINISTER TOLD THE ASSOCIATED PRESS HE SENT A LETTER TO MR PARRA TO ASK HIM IF NEWS REPORTS ABOVE 700000 BARRELS A DAY OF OPEC OVERPRODUCTION WERE TRUE MR ALBAGHLI SAID THE MATTER WILL BE DISCUSSED AT AN INFORMAL MEETING OF OPEC'S OIL MINISTERS IN MUSCAT OMAN NEXT MONDAY ONE DAY BEFORE THEY HOLD A JOINT MEETING WITH NONOPEC MINISTERS ALSO IRANIAN SOURCES CONFIRMED YESTERDAY THAT GHOLAMREZA AGHAZADEH IRAN'S OIL MINISTER WILL BRING ALONG DATA TO THE MUSCAT MEETING TO PROVE HE IS NOT EXCEEDING HIS PRODUCTION QUOTA AND THAT HE WILL ASK FOR SIMILAR PROOF FROM THE OTHER OPEC MEMBERS MR PARRA SAID HE HAD NEITHER RECEIVED THE LETTER FROM KUWAIT NOR YET HEARD FROM MR AGHAZADEH REGARDING IRANIAN INTENTIONS BUT HE SAID THAT WHILE PRODUCTION WILL BE DISCUSSED INFORMALLY THE LEVEL IS SET UNTIL THE NEXT REGULAR OPEC MEETING IN JUNE 9304070153 930407 BUSINESS BRIEF CIRCUIT CITY STORES PLANS TO TRY ITS HAND AT PEDDLING A NEW PRODUCT USED CARS RICHMOND VA CIRCUIT CITY STORES INC ENJOYING GOOD RESULTS FROM SELLING CONSUMER ELECTRONICS AND MAJOR APPLIANCES SAID IT MAY ADD USED CARS TO ITS PRODUCT LINE THE SPECIALTY RETAILER REPORTED STRONG FISCAL FOURTHQUARTER EARNINGS CITING ROBUST SAMESTORE SALES IN THE CHRISTMAS SHOPPING SEASON DISCUSSING THE USED CAR VENTURE RICHARD L SHARP PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID WE BELIEVE THAT AUTOMOBILE RETAILING OFFERS OPPORTUNITIES TO CAPITALIZE ON CIRCUIT CITY'S STRENGTHS IN CUSTOMER SERVICE AND BIGTICKET RETAILING THE COMPANY PLANS TO TEST THE CONCEPT IN THE RICHMOND AREA SEPARATE FROM ANY CIRCUIT CITY STORES BUT SAID THE VENTURE WILL HAVE NO MATERIAL IMPACT ON EARNINGS CIRCUIT CITY SAID EARNINGS IN THE FOURTH QUARTER ENDED FEB 28 ROSE 38 TO 608 MILLION OR 63 CENTS A SHARE FROM 44 MILLION OR 46 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 22 TO 110 BILLION FROM 9033 MILLION ALTHOUGH BUSINESS HAS BEEN DIFFICULT FOR MANY CONSUMER ELECTRONICS RETAILERS CIRCUIT CITY SAID ITS COMPARABLESTORE SALES ROSE 9 IN THE QUARTER CIRCUIT CITY ALSO REPORTED RECORD SALES FOR MARCH IT SAID TOTAL SALES JUMPED 24 AND SAMESTORE SALES ROSE 9 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CIRCUIT CITY SHARES ROSE 1875 OR 77 TO 26375 CIRCUIT CITY SAID THAT WHILE EXISTING MARKETS WILL REMAIN HIGHLY COMPETITIVE IT PLANS TO CONTINUE EXPANDING BY OPENING 40 SUPERSTORES INCLUDING ENTRIES IN BOSTON AND CHICAGO CIRCUIT CITY WILL ALSO REMODEL 40 TO 50 EXISTING STORES TO IMPROVE OPERATING EFFICIENCIES AND EXPAND SELLING SPACE FOR HOME OFFICE PRODUCTS FOR FISCAL 1993 CIRCUIT CITY SAID EARNINGS ROSE 41 TO 1103 MILLION OR 115 A SHARE FROM 782 MILLION OR 82 CENTS A SHARE TOTAL SALES ROSE 17 TO 327 BILLION WHILE COMPARABLESTORE SALES CLIMBED 7 ANALYSTS CHEERED CIRCUIT CITY'S RESULTS BUT SOME QUESTIONED THE ATTEMPT AT SELLING USED CARS BUT CIRCUIT CITY SPOKESWOMAN ANN COLLIER SAID THE USED CAR BUSINESS IS ESTIMATED TO BE A 115 BILLION INDUSTRY WITHOUT ANY ONE KEY PLAYER WE WON'T RUN OUT OF GROWTH IN OUR SUPERSTORES FOR AT LEAST A DECADE BUT WE ARE LOOKING BEYOND THAT SHE SAID WHILE ONE ANALYST SAID HE EXPECTS THE BUSINESS TO BE CALLED AUTO WORLD AND FEATURE A NOHAGGLING ONEPRICE POLICY MS COLLIER SAID THE COMPANY HAS NOT DECIDED ON A NAME AND IS STILL DEVELOPING ITS MARKETING STRATEGY 9304070152 930407 INTERNATIONAL DAIMLER SAYS MERCEDES HAS OPERATING LOSS BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL STUTTGART GERMANY THE FIRST TEST OF DAIMLERBENZ AG'S NEW POLICY OF FINANCIAL OPENNESS CAME YESTERDAY AT THE COMPANY'S ANNUAL NEWS CONFERENCE WHERE IT RELEASED DETAILS OF ITS 1992 RESULTS MOST OF THE NEWS WAS BAD CHAIRMAN EDZARD REUTER CONFIRMED SOMETHING THAT UNTIL NOW DAIMLER STEADFASTLY REFUSED TO COMMENT ON HE SAID ITS MERCEDESBENZ AG CAR AND TRUCK UNIT INCURRED AN OPERATING LOSS BUT WOULDN'T DISCLOSE ITS SIZE MERCEDES'S NET INCOME SKIDDED TO 849 MILLION MARKS 5323 MILLION IN 1992 FROM 155 BILLION MARKS IN 1991 AS FOR DAIMLER AS A WHOLE GROUP EARNINGS PLUNGED 25 LAST YEAR AND COMPANY OFFICIALS PREDICTED A 25 TO 30 SLIDE IN PROFIT FOR 1993 FIRSTQUARTER REVENUE FOR THE INDUSTRIAL GROUP RAVAGED BY COLLAPSING SALES OF CARS AND TRUCKS IS DOWN A PRELIMINARY 25 AS WELL DAIMLER SAID THE COMPANY HAD REPORTED THE BASICS OF ITS 1992 RESULTS ON FRIDAY WE HAVE TO FACE UP TO THE FACT THAT 1993 IS GOING TO BE EVEN TOUGHER THAN THE SECOND HALF OF 1992 MR REUTER TOLD THE NEWS CONFERENCE THE WEAK RESULTS ALTHOUGH EXPECTED BY ANALYSTS STILL PUSHED DOWN DAIMLER'S SHARES ON THE FRANKFURT EXCHANGE BY 1450 MARKS TO 58050 MARKS DAIMLER'S NEW FINANCIAL OPENNESS IS THE RESULT OF ITS DESIRE TO LIST ITS SHARES ON THE NEW YORK STOCK EXCHANGE THE NEW REPORTING PRACTICES WHILE REQUIRED IN THE US ARE UNPRECEDENTED FOR THE CONSERVATIVE GERMAN BUSINESS ESTABLISHMENT AND WHILE DAIMLER'S DECISION TO ADOPT US ACCOUNTING PRACTICES MAY HAVE WON FRIENDS IN SOME PLACES IT STIRRED IRE IN GERMANY MANY GERMAN COMPANIES WERE FURIOUS DAIMLER STRUCK A DISCLOSURE DEAL WITH THE US SECURITIES AND EXCHANGE COMMISSION THERE ARE A LOT OF PEOPLE ANGRY WITH US SAID GERHARD LIENER DAIMLER'S CHIEF FINANCIAL OFFICER MAINLY BECAUSE THEY HAVE NO CHOICE NOW BUT TO FOLLOW US THE COMMON FRONT IS BROKEN INSTEAD OF REPORTING SOURCES AND USES OF FUNDS FOR INSTANCE DAIMLER NOW BREAKS DOWN THREE TYPES OF CASH FLOW FOR OPERATIONS INVESTMENT AND FINANCING 9304070151 930407 COMPUTERS DEALERS ACCUSE COMPAQ OF JILTING THEM BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DAVID MCDONOUGH FEELS BETRAYED A DECADE AGO THE SAN DIEGO PERSONAL COMPUTER DEALER HELPED PEDDLE COMPAQ COMPUTER CORP'S FIRST PC LAST YEAR HE SOLD MORE THAN 3600 OF THE COMPANY'S MACHINES BUT NOW AS THE BIG HOUSTON COMPUTER MAKER SEEKS TO WOO SEXIER FASTERGROWING DISTRIBUTION CHANNELS MR MCDONOUGH IS LEFT WITH NEARLY 300 COMPAQ MACHINES ON BACK ORDER AND THE PROSPECT THAT THE ORDERS WON'T BE FILLED FOR WEEKS TO SALVAGE CRITICAL ACCOUNTS MR MCDONOUGH IS SACRIFICING HIS PROFIT AND SHOPPING FOR COMPAQ PCS AT A NEARBY SUPERSTORE AND FROM COMPAQ'S NEW MAILORDER OPERATION WHICH SOMEHOW MANAGE TO FIND MACHINES HE CAN'T SEEM TO SNAG ALL THESE YEARS COMPAQ HAS BEEN SO LOYAL AND WE'VE BEEN SO LOYAL MR MCDONOUGH SAYS BASICALLY THEY'VE DESTROYED A 10YEAR RELATIONSHIP IN 90 DAYS MR MCDONOUGH'S ANGER IS SHARED BY MANY OTHER TRADITIONAL PC DEALERS CAUGHT IN COMPAQ'S EFFORTS TO INCREASE ITS CONSUMER SALES BY SHIFTING ITS ATTENTION TO MAILORDER SALES SUPERSTORE VENDORS AND EVEN WAREHOUSE CLUBS WITH ITS NEW LINE OF LOWERPRICED COMPUTERS IN MUCH DEMAND COMPAQ HAS HAD DIFFICULTY FEEDING ALL OF THE HUNGRY MOUTHS AND THE COMPANY'S OLD CORE OF DEALERS MOST OFFERING SERVICE AND INSTALLATION AS WELL AS SALES INSIST THEY ARE GOING THE HUNGRIEST COMPAQ'S DEALERS AREN'T THE ONLY ONES SUFFERING OVER THE PAST SEVERAL YEARS TRADITIONAL DEALERS HAVE GRADUALLY LOST MARKET SHARE TO CHEAPER NIMBLER RETAIL COMPETITORS APPLE COMPUTER INC AND INTERNATIONAL BUSINESS MACHINES CORP AMONG OTHERS HAVE ALSO BEEN SHIFTING CHANNELS LEAVING DEALERS DESPERATE FOR INVENTORY AMID GROWING SHORTAGES AMONG THE BIG COMPUTER MAKERS HOWEVER COMPAQ HAD RESISTED THE TREND TO MASS MERCHANDISING THE LONGEST CITING ITS OBLIGATION TO THE DEALER CHANNEL THAT HAD NURTURED ITS GROWTH EVEN WHEN THE COMPANY DECIDED TO INTRODUCE ITS LOWCOST PROLINEA COMPUTERS IT SAID IT WOULD GO SLOW ON ENTERING OTHER RETAIL CHANNELS BUT COMPAQ'S SLOW MOVE HAS TURNED INTO A SPRINT AND DEALERS SAY THEY ARE BEING LEFT BEHIND MATT FITZSIMMONS A COMPUTERLAND DEALER IN WHITE PLAINS NY SAYS HE LOST 250000 IN ORDERS IN MARCH OR ABOUT 40 OF HIS REVENUE FOR THE MONTH BECAUSE COMPAQ COULDN'T DELIVER ENOUGH PROLINEA MACHINES TO SATISFY HIS CUSTOMERS IT'S NOT JUST THAT WE LOSE AN ORDER MR FITZSIMMONS SAYS WE LOSE A LONGTERM RELATIONSHIP WITH A CUSTOMER LIKE HIS CALIFORNIA COUNTERPART MR FITZSIMMONS DISCOVERED THAT 32 MACHINES THAT COMPAQ SAID WOULD TAKE UNTIL JUNE TO DELIVER COULD BE AT HIS OFFICE BY NEXT FRIDAY THROUGH THE COMPANY'S MAILORDER LINE WHAT THEY ARE DOING DOESN'T MAKE SENSE HE SAYS ROSS COOLEY THE COMPAQ SENIOR VICE PRESIDENT IN CHARGE OF THE COMPANY'S DISTRIBUTION STRATEGY ACKNOWLEDGES THAT DEALERS ARE ANGRY BUT DENIES THAT THE COMPANY HAS INTENTIONALLY DIVERTED ITS INVENTORY TO THE NEW SALES CHANNELS HE SAYS THAT COMPAQ SHIPPED MORE COMPUTERS TO DEALERS IN THE LAST TWO WEEKS OF MARCH THAN IN ANY OTHER PERIOD AND HE SAYS THAT THE RECORD SHIPMENTS ARE CONTINUING INTO THE SECOND QUARTER ONE OF THE REALITIES OF THIS IS THAT EVEN THOUGH THEY ARE FRUSTRATED THEIR OVERALL COMPAQ BUSINESS IS UP 1 1/2 TWO 2 1/2 EVEN THREE TIMES WHAT IT WAS IN MARCH OF LAST YEAR HE SAYS NONETHELESS COMPAQ IS STILL ABLE TO FILL ONLY ABOUT HALF OF THE ORDERS IT RECEIVES HE SAYS A BACKLOG THAT COULD KEEP COMPAQ DEALERS FUMING FOR SOME TIME I AM NOT DOWNPLAYING THE LEVEL OF FRUSTRATION ANALYSTS SAY DEALERS' EXASPERATION OVER BACKLOGGED PCS HAS BEEN COMPOUNDED BY BROADER FEARS ABOUT THE FUTURE OF THEIR BUSINESS THOUGH TRADITIONAL DEALERS STILL ACCOUNT FOR ABOUT TWOTHIRDS OF ALL CORPORATE PC SALES GROWTH IN THE SECTOR LAST YEAR FELL SLIGHTLY AT THE SAME TIME ANALYSTS EXPECT MAILORDER AND SUPERSTORE SALES TO CONTINUE TO GAIN BUSINESS OVER THE NEXT YEAR GOBBLING UP A COMBINED 19 OF THE US PC PIE BY 1994 COMPARED WITH 13 TWO YEARS AGO EVERYBODY HAS ALWAYS BEEN MAD BUT IT'S NEVER BEEN LIFE OR DEATH BEFORE SAYS SEYMOUR MERRIN A PALO ALTO CALIF COMPUTER RETAILING CONSULTANT THE PERCEIVED ANGER IS BECOMING GREATER AND GREATER BECAUSE THE RISKS ARE HIGHER IN ADDITION TO DEALERS BUYING MACHINES FROM COMPETITORS SOME DEALERS AT MICROAGE INC HAVE EVEN SET UP SUBSIDIARIES TO ORDER ADDITIONAL MERCHANDISE MEANTIME NEARLY ALL OF THE DEALERS INCLUDING MR MCDONOUGH ACKNOWLEDGE THAT THEY EXAGGERATE THEIR EXPECTED NEED TO MANUFACTURERS TO TRY TO GET AN ORDER THAT'S CLOSER TO THEIR ACTUAL DEMAND IT JUST BUILDS TO A FRUSTRATION POINT SAYS MIKE BJORNSTAD A MARKETING MANAGER AT INACOM CORP AN OMAHA NEB DEALER THAT CURRENTLY HAS ABOUT 1000 COMPAQ MACHINES ON BACK ORDER DEALERS OF COURSE ARE BEING PRESSURED BY THE IMPATIENCE OF CUSTOMERS LIKE SCOTT HERRON A LONGTIME CUSTOMER OF MR MCDONOUGH MR HERRON TECHNICAL COMPUTER COORDINATOR FOR CHILDREN'S HOSPITAL OF SAN DIEGO SAYS HE FINALLY BOUGHT HIS NEW MACHINES AT A SUPERSTORE WE WANT OUR MACHINES NOW SAYS MR HERRON WHO OVERSEES A 500PC NETWORK I LIKE TO SUPPORT THESE DEALERS BUT WHEN IT COMES DOWN TO GETTING WHAT I NEED TODAY OR IN SIX WEEKS I'M GOING TO GIVE MY BUSINESS TO THE SUPERSTORES FEARFUL OF GETTING BURNED AGAIN MR MCDONOUGH IS URGING CUSTOMERS TO BUY MACHINES MADE BY OTHER MANUFACTURERS WE SURE AS HELL WON'T START A NEW CUSTOMER ON COMPAQ HE SAYS LISTEN I'VE GOT TO SAVE MY BUSINESS HERE BUSINESS IS COMPANIES WITH MORE THAN 5 MILLION IN REVENUE AND BETWEEN 100 AND 1000 EMPLOYEES 9304070150 930407 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 BOEING CO 175 MILLION ISSUE OF DEBENTURES DUE APRIL 15 2043 PRICED AS 7 7/8 S AT 98625 TO YIELD 7987 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF ONE PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH SALOMON BROTHERS INC CHRYSLER CORP FOURPART 15 BILLION AUTO LOANBACKED OFFERING PRICED BY UNDERWRITERS LED BY BEAR STEARNS & CO THE OFFERING IS COLLATERALIZED BY AUTO AND LIGHTDUTY TRUCK RECEIVABLES FROM THE COMPANY'S CHRYSLER CREDIT CORP UNIT THE SECURITIES ARE SOLD THROUGH A SPECIALPURPOSE TRUST CALLED PREMIER AUTO TRUST 19932 DETAILS ARE AS FOLLOWS 330 MILLION CLASS A1 MONEY MARKET NOTES PRICED WITH A 323 COUPON AT 100 TO YIELD 325 THESE SECURITIES WITH A 04YEAR AVERAGE LIFE HAVE AN EXPECTED FINAL MATURITY OF JAN 15 1994 AND LEGAL FINAL MATURITY OF APRIL 15 1994 400 MILLION CLASS A2 FLOATINGRATE NOTES PRICED AT 100 TO FLOAT 20 BASIS POINTS ABOVE ONEMONTH LONDON INTERBANK OFFERED RATE THESE SECURITIES HAVE AN AVERAGE LIFE OF 16 YEARS AN EXPECTED MATURITY OF OCT 15 1995 AND LEGAL FINAL MATURITY OF OCT 15 1998 610 MILLION CLASS A3 TOTAL RATE OF RETURN NOTES PRICED WITH A 49 COUPON AT 999486 TO YIELD 497 58 BASIS POINTS ABOVE THREEYEAR TREASURY NOTES THESE SECURITIES HAVE AN AVERAGE LIFE OF 29 YEARS AN EXPECTED MATURITY OF FEB 15 1997 AND LEGAL FINAL MATURITY OF OCT 15 1998 60 MILLION SUBORDINATED SECURITIES PRICED AS 5S AT 998551 TO YIELD 512 100 BASIS POINTS OVER THE INTERPOLATED TWOYEAR AND THREEYEAR TREASURY NOTES THESE SECURITIES HAVE AN AVERAGE LIFE OF 235 YEARS CHRYSLER FINANCIAL CORP 250 MILLION OF NOTES DUE APRIL 15 1996 PRICED AS 6S AT 99775 TO YIELD 6083 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 173 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE RATED BA1 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CHRYSLER FINANCIAL IS A UNIT OF CHRYSLER CORP VIRGINIA ELECTRIC & POWER CO 200 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE APRIL 1 2003 WON BY DEALERS LED BY MORGAN STANLEY & CO THE BONDS WERE REOFFERED AS 6 5/8 S AT 9989 TO YIELD 664 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 051 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE BONDS ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P VIRGINIA ELECTRIC IS A UNIT OF DOMINION RESOURCES INC WASTE MANAGEMENT INC 200 MILLION OF NOTES DUE APRIL 14 1996 PRICED AS 4 5/8 S AT 99516 TO YIELD 48 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 040 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ADAMS COUNTY COLO 795 MILLION SERIES 1993A POLLUTION CONTROL REFUNDING REVENUE BONDS PRICED BY A GEORGE K BAUM & CO GROUP THE ISSUE INCLUDES 20 MILLION 5625S AT 9826 WHICH ARE TO YIELD 58 ON APRIL 1 2008 THERE ARE ALSO 595 MILLION 5875S AT 9852 WHICH ARE TO YIELD 6 ON APRIL 1 2014 THE BONDS ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FRANKLIN COUNTY OHIO 1441 MILLION SERIES 1993A HOSPITAL FACILITIES REVENUE REFUNDING BONDS PRICED BY A FIRST BOSTON CORP GROUP THE OFFERING IS FOR THE RIVERSIDE UNITED METHODIST HOSPITAL PROJECT YIELDS RANGE FROM 3 IN 1994 TO 61 IN 2020 MOODY'S HAS RATED THE ISSUE DOUBLEA GUILFORD COUNTY NC 545 MILLION VARIOUS SERIES 1993 BONDS BELIEVED TO HAVE BEEN WON BY MANAGING UNDERWRITERS WACHOVIA BANK OF NORTH CAROLINA AND NATIONSBANC CAPITAL MARKETS INC A SUBSIDIARY OF NATIONSBANK CORP WACHOVIA BANK APPARENTLY WON THE COUNTY'S 298 MILLION UNLIMITEDTAX REFUNDING BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 48579 YIELDS FOR THOSE SECURITIES RANGE FROM 26 IN 1994 TO 54 IN 2006 NATIONSBANC IS BELIEVED TO HAVE WON GUILFORD COUNTY'S 247 MILLION UNLIMITEDTAX BONDS WITH A BID SETTING THE NET INTEREST COST AT 53438 YIELDS RANGE FROM 275 IN 1994 TO 555 IN 2009 AND 2010 THE ENTIRE ISSUE HAS BEEN RATED DOUBLEA1 BY MOODY'S AND DOUBLEAPLUS BY S&P LAS VEGAS VALLEY NEV WATER DISTRICT 374 MILLION LIMITEDTAX GENERAL OBLIGATION WATER REFUNDING BONDS APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 52236 YIELDS RANGE FROM 2 IN 1993 TO 59 IN 2009 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MINNESOTA 3346 MILLION REFUNDING GENERAL OBLIGATION BONDS APPARENTLY WON BY A FIRST CHICAGO CAPITAL MARKETS INC GROUP WITH A BID SETTING TRUE INTEREST COST AT 52651 YIELDS FOR REOFFERED BONDS RANGE FROM 34 IN 1995 TO 5 IN 2002 SECURITIES DUE IN 1994 AND 200309 AREN'T FORMALLY REOFFERED MOODY'S HAS RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAPLUS RATING TRIBOROUGH BRIDGE & TUNNEL AUTHORITY OF NEW YORK STATE 88 MILLION OF BENEFICIAL INTEREST CERTIFICATES SOLD THROUGH A GROUP LED BY ARTEMIS CAPITAL GROUP INC YIELDS FOR THE NONCALLABLE CERTIFICATES RANGE FROM 25 IN 1994 TO 54 IN 2005 THEY ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P PROCEEDS WILL BE USED TO FINANCE THE LEASE PURCHASE OF AS MANY AS 384 BUSES BY NEW YORK STATE'S METROPOLITAN TRANSPORTATION AUTHORITY HOWEVER THE CERTIFICATES WILL BE PAID OFF BY THE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S GENERAL TOLL REVENUES THE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY IS AN AFFILIATE OF THE MTA AND STATE LAW REQUIRES THAT ANY ANNUAL SURPLUS FUNDS OF THE AUTHORITY BE GIVEN TO THE MTA CEPHALON INC TWO MILLION COMMON SHARES PRICED AT 950 EACH OFFERING MANAGED BY COWEN & CO HAMBRECHT & QUIST INC AND JP MORGAN SECURITIES INC CROSSCOM CORP 15 MILLION COMMON SHARES PRICED AT 2675 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES EATON VANCE CORP 12 MILLION NONVOTING COMMON SHARES PRICED AT 3375 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES G010 IS BACKED BY GS004 STRIPPED SECURITIES WHICH IS IN TURN BACKED BY 8 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 85 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2958 YEARS FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF REMICS OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1514 IS BACKED BY FREDDIE MAC GOLD 30YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS FEDERAL HOME LOAN MORTGAGE CORP 1306 MILLION OF REMICS OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 149 IS BACKED BY THREE INTERESTONLY STRIPPED MORTGAGE SECURITIES CLASSES SERIES 1235 L SERIES 1278 S AND SERIES 1286 D AS WELL AS GOLD STRIP 102 SECURITIES THESE SECURITIES ARE IN TURN BACKED BY FREDDIE MAC GOLD 9 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 965 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2667 YEARS ALCATELALSTHOM SA FRANCE TWO BILLION FRENCH FRANCS OF 7 1/4 EUROBONDS DUE MAY 7 1998 AT ISSUE PRICE 9993 VIA SOCIETE GENERALE REOFFERED AT 9863 TO YIELD 759 MARGIN 55 BASIS POINTS ABOVE FRENCH TREASURY'S 9 1/2 BONDS DUE 1998 FEES 1 1/2 APASCO SA DE CV MEXICO 80 MILLION DEUTSCHE MARKS OF 9 1/4 EUROBONDS DUE APRIL 20 1998 AT PAR VIA DRESDNER BANK AG YIELD 985 ANNUAL AT BREAKEVEN PRICE FOR COMANAGING BANKS SPREAD 300 BASIS POINTS OVER COMPARABLE BUND CALL OPTION EXERCIZABLE ON APRIL 20 1996 AT 101 5/8 AND ON APRIL 20 1997 AT 101 1/8 PUT OPTION AT PAR IF SWISS PARENT HOLDERBANK'S OWNERSHIP FALLS BELOW 50 GUARANTOR CIMENTO APASCO SA DE CV AND CONCRETOS APASCO SA DE CV FEES 2 1/2 AUTOPISTA DEL ATLANTICO CONCESIONARIA ESPANOLA SA AUDASA SPAIN 150 MILLION SWISS FRANCS OF 5 1/8 PUBLIC BONDS DUE MAY 13 2003 PRICED AT 101 5/8 VIA CREDIT SUISSE FEES 2 3/8 CREDIT LOCAL DE FRANCE FRANCE 150 BILLION ITALIAN LIRE OF 113 EUROBONDS DUE MAY 7 1998 AT ISSUE PRICE 101 3/4 VIA ISTITUTO BANCARIO SAN PAOLO DI TORINO FEES 1 7/8 EUROPEAN INVESTMENT BANK SUPRANATIONAL 150 MILLION ECU OF 7 3/4 EUROBONDS DUE MARCH 10 2000 AT FIXED REOFFER PRICE 101143 VIA BARCLAYS DE ZOETE WEDD LTD YIELD AT REOFFER PRICE 753 BONDS WILL TRADE INTERCHANGEABLY WITH OUTSTANDING 500 MILLION ECU ISSUE FROM 40 DAYS AFTER EXCHANGE DATE FEES NOT DISCLOSED MARUBENI INTERNATIONAL FINANCE NV JAPAN 255 MILLION FINNISH MARKKA ISSUE OF 8 1/2 EUROBONDS DUE APRIL 20 1994 AT ISSUE PRICE PAR VIA LTCB INTERNATIONAL LTD KEEPWELL AGREEMENT WITH PARENT MARUBENI CORP FEES NOT DISCLOSED REPUBLIC OF FINLAND SOVEREIGN 200 MILLION SWISS FRANCS OF 5 PRIVATELY PLACED NOTES DUE MAY 11 1998 PRICED AT 102 1/8 VIA UNION BANK OF SWITZERLAND FEES 1 1/2 SMITHKLINE BEECHAM CAPITAL PLC UK PARENT 100 MILLION OF 8 1/8 EUROBONDS NOV 25 1998 VIA SAMUEL MONTAGU & CO REOFFERED AT 102787 TO YIELD 7362 SEMIANNUAL 62 BASIS POINTS OVER THE 7 1/4 GILT OF 1998 AT THE TIME OF THE INITIAL OFFERING WILL TRADE INTERCHANGEABLY WITH EXISTING 100 MILLIONPOUND ISSUE WITH IDENTICAL TERMS FEES 03 SOCIETE DE CAISSE D'EPARGNE FRANCE 15 BILLION FRENCH FRANCS OF FLOATING RATE EURONOTES DUE JUNE 2 2003 VIA PARIBAS LTD INTEREST FLOATS AT 10 BASIS POINTS ABOVE THE TAUX MOYEN EMPRUNT D'ETAT A RATE AVERAGING FRENCH TREASURY BOND YIELDS REOFFERED AT PAR FEES NOT DISCLOSED SOKKIA CO JAPAN 80 MILLION SWISS FRANCS OF 075 PRIVATELY PLACED NOTES DUE APRIL 22 1997 WITH EQUITYPURCHASE WARRANTS VIA BANCA DELLA SVIZZERA ITALIANA EACH 50000 FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM FROM MAY 11 1993 TO APR 15 1997 TO PURCHASE COMPANY SHARES FINAL TERMS FIXED APRIL 13 FEES 1 5/8 WOOLWICH BUILDING SOCIETY UK 150 MILLION OF 7 EUROBONDS DUE APRIL 29 1996 AT ISSUE PRICE 100525 VIA UBS LTD REOFFERED AT 99 3/8 TO YIELD 724 MARGIN 44 BASIS POINTS ABOVE UK TREASURY'S 10 BONDS DUE 1996 FEES 1 3/8 YAMANOUCHI PHARMACEUTICAL CO JAPAN 200 MILLION OF 1 1/2 EUROBONDS DUE APRIL 22 1997 AT ISSUE PRICE PAR VIA NIKKO SECURITIES CO EUROPE LTD EACH 10000 BOND HAS TWO WARRANTS ATTACHED EXERCISABLE FROM MAY 6 1993 TO APRIL 15 1997 TO BUY YAMANOUCHI SHARES AT A PRICE TO BE FIXED AT 2 1/2 ABOVE CLOSING SHARE PRICE WHEN FINAL TERMS FIXED APRIL 13 FEES 2 1/4 YAMANOUCHI PHARMACEUTICAL CO JAPAN 30 BILLION YEN OF CONVERTIBLE EUROBONDS DUE MARCH 31 2000 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC INTEREST TO BE SET AT BETWEEN 1 5/8 AND 1 3/4 SEMIANNUAL CONVERTIBLE INTO YAMANOUCHI SHARES FROM MAY 6 1993 TO MARCH 24 2000 AT A 2 1/2 PREMIUM ABOVE CLOSING SHARE PRICE APRIL 13 WHEN FINAL TERMS SET CALL OPTION FROM APRIL 1 1994 AT 103 DECLINING 05 POINT ANNUALLY OR IF SHARES TRADE AT 130 OF CONVERSION PRICE FOR 20 CONSECUTIVE BUSINESS DAYS FEES 2 1/2 9304070149 930405 QUARTERLY MUTUAL FUNDS REVIEW DEBATE SHOWS STRONG SPLIT ON PROSPECTS FOR CYCLICAL STOCKS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL HAVE CYCLICAL STOCKS HAD IT CYCLICALS STOCKS THAT RISE AND FALL WITH THE ECONOMIC TIDES HAVE BEEN AMONG THE STOCK MARKET'S STRONGEST PERFORMERS FOR THE PAST YEAR OR MORE BUT THAT'S YESTERDAY'S NEWS SOME MUTUAL FUND MANAGERS SAY THE MOST DANGEROUS THING IN PORTFOLIO MANAGEMENT IS TO GET A CASE OF IWISHIHAD SAYS JONATHAN SCHOOLAR COMANAGER OF AIM WEINGARTEN FUND AND AIM CONSTELLATION FUND IN HOUSTON PEOPLE WHO WISH THEY HAD INVESTED MORE HEAVILY IN THE CYCLICALS LAST YEAR SHOULDN'T TRY TO MAKE UP FOR IT NOW HE DECLARES JUST ABOUT EVERYBODY NOW COMES DOWN ON THE SIDE OF THE CYCLICALS SAYS MR SCHOOLAR IT'S A CHIC THING MY CONTENTION WOULD BE THAT THE CYCLICALS HAVE HAD A HUGE RUN THEY HAVE DISCOUNTED PRETTY MUCH THE MOST POSITIVE OUTLOOK WE CAN IMAGINE FOR THE ECONOMY THUMBING HIS NOSE AT THE CYCLICALS HE'S BOOSTING HIS STAKES IN CLASSIC STEADYGROWTH COMPANIES SUCH AS WALMART STORES INC COCACOLA CO PEPSICO INC GILLETTE CO AND FEDERAL NATIONAL MORTGAGE ASSOCIATION OF COURSE MANY MUTUAL FUND MANAGERS STRONGLY DISAGREE WITH MR SCHOOLAR THERE'S NO CLEAR CONSENSUS BECAUSE MANY MANAGERS ARE BETTING STRONGLY EITHER FOR OR AGAINST CYCLICAL STOCKS THIS CHOICE COULD BE CRUCIAL TO HOW WELL THEIR PORTFOLIOS PERFORM FOR THE REST OF 1993 ONE MANAGER WHO THINKS THE CYCLICALS STILL HAVE PLENTY OF ROOM TO RISE IS TONY KREISEL COMANAGER OF PUTNAM FUND FOR GROWTH & INCOME IN BOSTON WE THINK THE INDUSTRIAL SECTOR IS IN THE BEST SHAPE IT HAS BEEN IN IN THE PAST 20 YEARS HE SAYS THE MOVEMENT TO CYCLICALS MOST OF THEM HEAVY INDUSTRY STOCKS IS LIKELY TO GO ON FOR YEARS HE CONTENDS THE STEADYGROWTH CONSUMER STOCKS THAT OUTPERFORMED THE MARKET FOR SO LONG AND BY SO MUCH IN THE 1980S ARE LIKELY TO GO THROUGH A PROTRACTED CORRECTION FIDELITY PURITAN FUND IS FIDELITY INVESTMENTS' SECONDLARGEST FUND SECOND ONLY TO THE MIGHTY MAGELLAN FUND FOR THE MOST PART MANAGER RICHARD FENTIN IS PUTTING HIS CHIPS ON THE CYCLICALS MR FENTIN CONCEDES THAT THE CYCLICALS AREN'T AS CHEAP AS THEY USED TO BE WHILE STEADYGROWTH CONSUMER STOCKS HAVE COME DOWN SOMEWHAT IN PRICE BUT HE SAYS HEAVYINDUSTRY STOCKS STILL APPEAR TO HIM TO OFFER THE BEST VALUES I STILL LIKE THE ENERGY GROUP AND I STILL LIKE BASIC INDUSTRY THE METALS THE STEELS THE ALUMINUMS HE SAYS AMONG HIS LARGER HOLDINGS ARE WR GRACE & CO CATERPILLAR INC AMERADA HESS CORP ROYAL DUTCH PETROLEUM CO OCCIDENTAL PETROLEUM CORP AND BRITISH PETROLEUM PLC WR GRACE HE SAYS HAS SOLD OFF A HODGEPODGE OF BUSINESSES AND NOW IS A SVELTE OUTFIT CONCENTRATING ON SPECIALTY CHEMICALS AND HEALTH CARE PARTICULARLY KIDNEY DIALYSIS CATERPILLAR IN HIS EYES HAS DONE A WONDERFUL JOB OF SLIMMING DOWN AND STREAMLINING MANUFACTURING HE THINKS CATERPILLAR CAN EARN 10 A SHARE OR MORE IN A GOOD YEAR ONCE EUROPE AND JAPAN SNAP OUT OF THEIR ECONOMIC SLOWDOWNS CATERPILLAR STOCK CLOSED FRIDAY AT 58375 A COUPLE OF YEARS AGO MR FENTIN SAYS BANK STOCKS WERE A GREAT BARGAIN BUT THEY'VE MOVED UP SO MUCH THAT HE'S BEEN EASING OUT OF THEM OVER THE PAST THREE TO SIX MONTHS PURITAN IS A BALANCED FUND MEANING IT HOLDS BOTH STOCKS AND BONDS USUALLY MR FENTIN LIKES TO HAVE 60 TO 80 OF HIS MONEY IN STOCKS BUT AT THE MOMENT IT'S MORE LIKE 45 THE STOCK MARKET TAKEN AS A WHOLE HAS BEEN EXPENSIVE FOR A FEW YEARS HE SAYS BUT UNTIL RECENTLY HE COULD STILL FIND BARGAINS IN INDIVIDUAL STOCKS NOW HE SAYS IT'S DIFFICULT TO FIND BARGAINS AT ALL THE DECLINE IN GROWTH STOCKS HASN'T MADE THAT GROUP ATTRACTIVE YET MR FENTIN SAYS BUT HE HAS STARTED TO MODESTLY NIBBLE AT THREE DRUG STOCKS HE WON'T NAME THEM BECAUSE HE MAY WANT TO ADD TO HIS POSITION ON WEAKNESS I'M CONVINCED THAT BILL CLINTON OR HILLARY RODHAM CLINTON WAKES UP EVERY MORNING AND PICKS A STOCK OUT OF MY PORTFOLIO TO DECIMATE SAYS MR SCHOOLAR FOR THE FIRST TIME IN MANY YEARS WE HAVE A PRESIDENT WHO FEELS COMFORTABLE FUNDAMENTALLY ALTERING AN ENTIRE INDUSTRY MOST OF THE DAMAGE HAS BEEN IN THE DRUG STOCKS WE'VE HAD TO SELL OUR DRUG STOCKS ADMITTEDLY BELATEDLY AND POORLY MR SCHOOLAR LAMENTS AT THE END OF 1991 DRUG SHARES WERE CLOSE TO 17 OF THE FUND TODAY THEY ARE LESS THAN 3 HE AND HIS NEW YORK COMANAGER HARRY HUTZLER AREN'T READY TO REENTER THE DRUG ARENA YET BUT THEY ARE LOADING UP ON OTHER GROWTH STOCKS RATTLING OFF SOME NUMBERS MR SCHOOLAR EXPLAINS WHY HE PREFERS THEM TO CYCLICALS NOW CONSIDER ALUMINUM CO OF AMERICA A LEADING CYCLICAL MR SCHOOLAR SAYS ALCOA'S EARNINGS PEAKED AT 1067 A SHARE IN 1989 THAT YEAR THE STOCK HIT A HIGH OF ABOUT 78 IT CLOSED FRIDAY AT 6450 AFTER RUNNING AS HIGH AS 7150 IN MIDMARCH THE MOST OPTIMISTIC ESTIMATE FOR 1994 NOT 1993 IS 9 A SHARE HE SAYS UNLESS THOSE EARNINGS ESTIMATES REALLY MOVE THE CYCLICALS AT BEST HAVE MAYBE 8 TO 12 LEFT IN THEM CONTRAST THAT WITH CONAGRA INC A STEADYGROWTH FOOD STOCK CONAGRA SHARES HIT A HIGH OF 35 1/2 IN 1991 HE SAYS EARNINGS THEN WERE 141 A SHARE IN 1993 NOT 1994 BUT 1993 USING JUST THE CONSENSUS THE ESTIMATE FOR CONAGRA EARNINGS IS 170 A SHARE HE SAYS THE STOCK CLOSED FRIDAY AT 27125 OR ABOUT EIGHT POINTS BELOW ITS 1991 HIGH UNLIKE MR FENTIN MESSRS SCHOOLAR AND HUTZLER DON'T CUT BACK ON OVERALL STOCKHOLDINGS IF THEY SENSE TROUBLE AHEAD THEY ALWAYS REMAIN FULLY INVESTED STILL MR SCHOOLAR THINKS THE MARKET WILL BE A LOT CHOPPIER THAN PEOPLE EXPECT A SELLOFF THAT KNOCKS 10 OFF STOCK PRICES WOULDN'T SURPRISE HIM AT ALL HE SUSPECTS THAT WE COULD GET AN AIR POCKET AS WE GET INTO THE GUTS OF WHAT PRESIDENT CLINTON'S GOING TO BE ABLE TO GET THROUGH CONGRESS AND WHAT THE TRADEOFFS ARE GOING TO BE JAMES BARROW PRINCIPAL MANAGER OF WINDSOR II FUND LEANS TOWARD CYCLICAL STOCKS BUT NOT JUST ANY CYCLICALS HE HAS ALMOST HALF HIS PORTFOLIO IN ENERGY AND FINANCIAL STOCKS WHEN MR BARROW AND HIS COLLEAGUES STARTED BUYING ENERGY STOCKS NEARLY TWO YEARS AGO HE SAYS WE FELT IT WAS KIND OF A FORGOTTEN AREA THE PRICING EXPECTATION PRIMARILY FOR GAS WAS FAR TOO LOW THE ASSUMPTION WAS THAT WE WOULD NEVER AGAIN HAVE A WINTER IN ADDITION HE SAYS FOR 2000 OR MORE YEARS THE MIDDLE EAST HAS BEEN AN UNSTABLE PLACE WE COULDN'T SEE ANY OUTBREAK OF BROTHERLY LOVE ALTHOUGH THE ENERGY STOCKS HAVE ALREADY SHOWN FAIRSIZED GAINS MR BARROW THINKS THERE'S SOME MORE TO GO HE OWNS EXXON CORP PHILLIPS PETROLEUM CO AMOCO CORP HALLIBURTON CO AND SCHLUMBERGER LTD FINANCIAL STOCKS HAVE THE WIND AT THEIR BACKS MR BARROW SAYS HE CONSIDERS BANK STOCKS CYCLICAL PLAYS BECAUSE A BETTER ECONOMY WOULD MEAN MORE LOAN DEMAND AND WOULD REDUCE THE NUMBER OF EXISTING LOANS THAT GO SOUR HIS FINANCIAL STOCKS INCLUDE CHEMICAL BANKING CORP CHASE MANHATTAN CORP AMERICAN EXPRESS CO BANKAMERICA CORP AND BANKERS TRUST NEW YORK CORP OTHER HOLDINGS INCLUDE SOME BIG RETAILERS SEARS ROEBUCK & CO JC PENNEY CO MAY DEPARTMENT STORES CO AND KMART CORP AND A FEW BEATENDOWN DRUG STOCKS SUCH AS BRISTOLMYERS SQUIBB CO AND AMERICAN HOME PRODUCTS CORP RECENTLY MR BARROW SAYS HE SOLD A UTILITY STOCK TO BUY BRISTOLMYERS AND INCREASED HIS DIVIDEND YIELD IN THE PROCESS THAT'S QUITE A SWITCH BECAUSE UTILITIES TRADITIONALLY PAY HIGH DIVIDENDS AND DRUG STOCKS LOW ONES WHEN YOU CAN BUY A COMPANY THE LIKES OF AMERICAN HOME PRODUCTS WITH A BELOWAVERAGE P/E PRICE DIVIDED BY PERSHARE EARNINGS AND AN ABOVEAVERAGE YIELD IT'S SOMETHING YOU OUGHT TO LOOK AT MR BARROW SAYS MR BARROW IS A PARTNER AT BARROW HANLEY MEWHINNEY & STRAUSS A HIGHLY REGARDED DALLAS MONEY MANAGEMENT FIRM WITH A VALUE OR BARGAINHUNTING STYLE ALTHOUGH BARROW HANLEY IS ONE OF THREE OUTSIDE MANAGERS HIRED BY VANGUARD TO RUN WINDSOR II IT RUNS MOST OF THE FUND'S MONEY MR KREISEL AND COMANAGER DAVID KING HAVE SPRINKLED THE PUTNAM FUND FOR GROWTH & INCOME PORTFOLIO LIBERALLY WITH CYCLICAL STOCKS BUT THE FUND ISN'T SIMPLY BUYING HEAVY INDUSTRY IT'S ALSO PURSUING A COUPLE OF SPECIFIC STOCKPICKING THEMES THE FUND IS PUTTING MONEY INTO STOCKS OF OLD ESTABLISHED COMPANIES WHOSE BOARDS OF DIRECTORS ARE SHAKING THINGS UP IN AN ATTEMPT TO GAIN HIGHER PROFITS ITT CORP EASTMAN KODAK CO SEARS AMERICAN EXPRESS CO AND XEROX CORP ALL MEET THAT DESCRIPTION THE FUND MANAGERS SAY WHAT ABOUT THOSE TWO LAGGARD GIANTS INTERNATIONAL BUSINESS MACHINES CORP AND GENERAL MOTORS CORP NOT YET THEY SAY BUT THEY ARE WATCHING DEVELOPMENTS AT BOTH COMPANIES CLOSELY THE TWO ARE ALSO KEEN ON INSURANCE STOCKS SUCH AS LINCOLN NATIONAL CORP ST PAUL COS CHUBB CORP AMERICAN GENERAL CORP AND AEGON NV PART OF THE BET IS THAT PROPERTYANDCASUALTY INSURERS WILL AT LAST RAISE THEIR PRICES TO THE POINT WHERE THEY MAKE A PROFIT ON UNDERWRITING NOT JUST ON INVESTING IDLE FUNDS WHILE THEY WAIT TO PAY CLAIMS WE ARE WAITING WITH BATED BREATH SAYS MR KREISEL THE CYCLE HAS ALREADY TURNED IN EUROPE IN GENERAL MESSRS KREISEL AND KING DON'T CARE FOR THE CONSUMER GROWTH STOCKS IN FOOD STOCKS AND HOUSEHOLD PRODUCTS MR KREISEL SAYS THE FUNDAMENTALS ARE NOT AS GOOD AS 10 YEARS AGO BUT THE VALUATIONS ARE FAR HIGHER HOWEVER HE ADDS WE THINK SOME OF THE VALUES IN THE DRUGS AND TOBACCOS HAVE GOTTEN SO CLEARLY WITHIN OUR RADAR RANGE THAT WE HAVE STARTED TO BUY PHILIP MORRIS COS FOR EXAMPLE WAS NOT A STOCK WE CARED FOR A FEW MONTHS AGO BUT AT RECENT LOWER PRICES THEY CAN'T RESIST IN DRUGS THEY HAVE BEEN BUYING AMERICAN HOME PRODUCTS BRISTOLMYERS SQUIBB AND ELI LILLY & CO THE PAIR SAYS THAT WITH THE OVERALL MARKET CLOSE TO A HIGH ON MOST BROAD MEASURES THEY ARE CAUTIOUS HOLDING CASH EQUAL TO ABOUT 15 OF THE FUND BUT MR KREISEL SAYS HE AND MR KING ARE VERY WILLING TO COMMIT THE CASH ON WEAKNESS AS A GROWTHSTOCK MANAGER ALBERT O NICHOLAS WHO RUNS NICHOLAS FUND AND NICHOLAS II FUND RARELY IS A BIG FAN OF CYCLICAL STOCKS IN THE PAST COUPLE OF YEARS HE DID OWN SEVERAL BUT NOW HE IS SCALING BACK THEY'RE PRETTY HIGH PRICED HE SAYS BESIDES HE DOESN'T THINK THE ECONOMY WILL REALLY BOOM IN HIS VIEW IT IS JUST SPUTTERING ALONG ONE CYCLICAL STOCK MR NICHOLAS HAS LIGHTENED UP ON IS COOPER TIRE & RUBBER CO IT'S ONE OF THE BEST COMPANIES WE'VE EVER INVESTED IN HE SAYS BUT AT A RECENT MULTIPLE OF 28 TIMES THE PAST FOUR QUARTERS' EARNINGS HE CONSIDERS THE STOCK TOO EXPENSIVE TO KEEP IN HIS PORTFOLIO SIMILARLY MR NICHOLAS HAS JETTISONED SHERWINWILLIAMS CO WITH A RECENT P/E OF NEARLY 20 AND A DIVIDEND YIELD OF ONLY 14 AS PART OF THE EFFORT TO LIGHTEN UP ON CYCLICALS HE HAS ALSO SOLD SHARES OF HANSON TRUST EVEN THOUGH ITS P/E IS BELOW 10 AND ITS DIVIDEND YIELD IS 58 SO WHAT HAS MR NICHOLAS BEEN BUYING IF YOU WOULD KEEP THIS A SECRET HE SAYS WE'RE BUYING THE HECK OUT OF ALL KINDS OF HEALTHCARE STOCKS A LOT OF PEOPLE THINK WE'RE CRAZY THE MOMENTUM PLAYERS BOTH EARNINGS MOMENTUM AND PRICE MOMENTUM ARE OUT OF THE SECTOR HE SAYS AND THE PSYCHOLOGY PLAYERS ARE OUT TOO FEARING WHAT MAY BE IN THE MAY 3 REPORT OF THE HEALTHCARE TASK FORCE HEADED BY MRS CLINTON BUT MR NICHOLAS THINKS THERE ARE BARGAINS GALORE IN THE GROUP THEY'RE ALL GETTING PAINTED WITH THE SAME BRUSH AND THEY'RE ALL COMING DOWN IN PRICE HE SAYS THOUGH HE THINKS THE SECTOR MAY HAVE A ROUGH YEAR OR TWO HE THINKS FIVEYEAR PROSPECTS ARE EXCELLENT I DON'T THINK PEOPLE ARE GOING TO STOP TAKING PILLS WHAT ABOUT THE PROSPECT OF PRICE CONTROLS ON HEALTH CARE MR NICHOLAS SAYS HE HOPES THAT WON'T HAPPEN BUT EVEN IF IT DID HE SAYS MARKET FORCES WOULD EVENTUALLY PREVAIL AMONG THE HEALTHCARE STOCKS HE HAS BEEN BUYING ARE BIOMET INC CARDINAL DISTRIBUTION INC STRYKER CORP VIVRA INC COMMUNITY PSYCHIATRIC CENTERS GALEN HEALTH CARE INC AND HEALTHTRUST INC HE HAS ALSO BEEN BUYING BIG DRUGCOMPANY STOCKS SUCH AS BRISTOLMYERS LILLY AND PFIZER INC VERY RARELY HE SAYS CAN INVESTORS BUY THESE STOCKS AT A P/E LESS THAN THAT OF THE OVERALL MARKET WILL HEALTHCARE STOCKS BE SLAMMED AGAIN PROBABLY MR NICHOLAS SAYS BUT IF THEY ARE HE PLANS TO USE THE DECLINE AS A CHANCE TO RAISE HIS STAKE IN THE SECTOR FROM ABOUT 11 OF THE FUND TO PERHAPS AS MUCH AS 25 AIRLINE STOCKS ARE ANOTHER OUTOFFAVOR AREA THAT APPEALS TO MR NICHOLAS HE HAS BEEN BUYING UAL CORP AMR CORP AND USAIR GROUP INC THERE HASN'T BEEN ONE POSITIVE THING SAID ABOUT AIRLINE STOCKS FOR A LONG TIME HE SAYS AS FOR THE OVERALL MARKET MR NICHOLAS SAYS INVESTORS SHOULD PROBABLY EXPECT SOMETHING LIKE A 10 ANNUAL RETURN IN THE 1990S IN CONTRAST WITH THE REDHOT ANNUAL RETURNS OF NEAR 17 IN THE 1980S WE MADE 13 LAST YEAR HE SAYS IF WE COULD DO THAT THIS YEAR WE'D BE VERY PLEASED IT'S GOING TO BE A TOUGH YEAR A LOT OF STOCKS WE THINK ARE OVERPRICED 9304070148 930407 WHAT'S NEWS WORLDWIDE CLINTON VOICED OPTIMISM ON MIDEAST TALKS AFTER DISCUSSIONS WITH MUBARAK WITH THE EGYPTIAN PRESIDENT AT HIS SIDE CLINTON VOWED AN ALLOUT EFFORT TO SETTLE THE ARABISRAELI CONFLICT MUBARAK THE FIRST ARAB LEADER TO MEET WITH CLINTON AT THE WHITE HOUSE SAID HE BELIEVED A DIPLOMATIC BREAKTHROUGH WAS POSSIBLE THIS YEAR THE TWO LEADERS AGREED THAT A SETTLEMENT COULD BE REACHED ONLY THROUGH AN EXCHANGE OF LAND FOR PEACE THE US IS PRESSING FOR AN APRIL 20 RESUMPTION OF MIDEAST TALKS AN EGYPTIAN COURT BEGAN THE RETRIAL IN ABSENTIA OF SHEIK ABDELRAHMAN WHOSE RHETORIC IS BELIEVED TO HAVE INSPIRED THE WORLD TRADE CENTER BLAST THE NEW JERSEY CLERIC AND 48 OTHERS ARE CHARGED WITH INCITING VIOLENCE IN EGYPT PRESIDENT CLINTON DESCRIBED BOSNIAN SERBS' REFUSAL TO ACCEPT A PEACE PLAN AS THE MOST DIFFICULT AND FRUSTRATING PROBLEM IN THE WORLD TODAY CLINTON SAID THE US WOULDN'T RULE OUT FURTHER STEPS TO MAKE LIFE MORE UNCOMFORTABLE FOR THE SERBS SERBIAN PRESIDENT MILOSEVIC MEANWHILE WARNED THE WEST AGAINST IMPOSING STRICTER SANCTIONS RISING HEALTH CARE COSTS HAVE LEFT THE MEDICARE TRUST FUND WITH ENOUGH MONEY TO PAY HOSPITAL BENEFITS FOR SENIOR CITIZENS AND DISABLED AMERICANS THROUGH ONLY THE NEXT SEVERAL YEARS ACCORDING TO A FEDERAL REPORT THE WASHINGTON REPORT SHOWS THAT MEDICARE'S HOSPITAL INSURANCE TRUST FUND WILL BE EXHAUSTED AS EARLY AS 1998 HOUSE SPEAKER FOLEY PREDICTED A CLOSE VOTE IN CONGRESS IF CLINTON TRIES TO EXTEND THE HEALTH INSURANCE POLICIES OF FEDERAL EMPLOYEES TO COVER ABORTION BUT THE WHITE HOUSE SAID IT WILL GO AHEAD WITH PLANS TO LIFT THE ABORTION RESTRICTIONS WHEN CLINTON SUBMITS HIS BUDGET THIS WEEK HE WON'T ASK CONGRESS TO RENEW THE CURBS AN AIDE SAID TESTIMONY ENDED IN THE FEDERAL RODNEY KING BEATING TRIAL IN LOS ANGELES AFTER PROSECUTORS SHOWED JURORS A VIDEOTAPE OF ONE POLICEMAN CRITICIZING HIS CODEFENDANTS HIS SERGEANT RETURNED TO THE STAND TO REBUT HIM THE JURORS WHO HEARD NEARLY SIX WEEKS OF TESTIMONY WILL RETURN TOMORROW FOR CLOSING ARGUMENTS MANDELA PLEADED WITH HIS FOLLOWERS TO REFRAIN FROM VIOLENCE CONCEDING THAT MEMBERS OF HIS AFRICAN NATIONAL CONGRESS ARE PARTLY RESPONSIBLE FOR BLACK FACTIONAL FIGHTING IN SOUTH AFRICA THE ANC HAS ROUTINELY BLAMED THE PRETORIA GOVERNMENT FOR THE CLASHES AND REGULARLY ACCUSES THE RIVAL INKATHA GROUP OF RAIDS ON ANC SUPPORTERS A SPACE SHUTTLE LAUNCH WAS HALTED 11 SECONDS BEFORE BLASTOFF AT KENNEDY SPACE CENTER IN FLORIDA AFTER ONBOARD COMPUTERS INDICATED A VALVE HADN'T CLOSED IN DISCOVERY'S PROPULSION SYSTEM NASA OFFICIALS TENTATIVELY RESCHEDULED THE EIGHTDAY ATMOSPHERIC RESEARCH FLIGHT FOR TOMORROW THE MISSION WILL HAVE FIVE CREW MEMBERS CLINTON WARNED LIBYA THAT WASHINGTON WILL PRESS FOR TOUGHER SANCTIONS UNLESS THE TRIPOLI GOVERNMENT COMPLIES WITH A UN RESOLUTION AND HANDS OVER TWO SUSPECTS IN THE 1988 BOMBING OF A PAN AM AIRLINER OVER SCOTLAND THE UN SECURITY COUNCIL IS DUE TO MEET TOMORROW TO REVIEW THE SANCTIONS IT IMPOSED ON LIBYA LAST YEAR MICHIO WATANABE RESIGNED AS JAPAN'S FOREIGN MINISTER CITING POOR HEALTH WATANABE AN ADVOCATE OF A JAPANESE MILITARY ROLE IN GLOBAL PEACEKEEPING EFFORTS IS THE LATEST POLITICAL LEADER TO DROP FROM THE RULING PARTY'S RANKS HIS DEPARTURE IS EXPECTED TO STRENGTHEN THE POSITION OF PRIME MINISTER MIYAZAWA THE UN ENVOY TO HAITI SAID HE WOULD DISCLOSE A LONGTERM PLAN NEXT WEEK WITH A TIMETABLE AIMED AT RESOLVING HAITI'S POLITICAL CRISIS DANTE CAPUTO ALSO SAID SEVERAL ECONOMIC INSTITUTIONS WERE MEETING TO MAP OUT A 1 BILLION RECONSTRUCTION PROGRAM ONCE DEMOCRACY RETURNS A MILITARY JUNTA OUSTED PRESIDENT ARISTIDE IN SEPTEMBER 1991 UNITA REBELS AGREED TO ATTEND UNSPONSORED PEACE TALKS WITH THE ANGOLAN GOVERNMENT THE UN ANNOUNCED THE NEGOTIATIONS ARE EXPECTED TO RESUME MONDAY IN ABIDJAN IVORY COAST THE SPECIAL UN ENVOY FOR ANGOLA APPEALED FOR INCREASED AID FOR REFUGEES FLEEING FIGHTING BETWEEN GOVERNMENT AND REBEL TROOPS IN SOUTHERN ANGOLA UN PEACEKEEPERS INCREASED SECURITY IN CAMBODIA AFTER A BULGARIAN SOLDIER WAS GRAVELY WOUNDED MEANWHILE THE US MILITARY SAID IT WAS WITHDRAWING A TEAM THAT HAD BEEN SEARCHING FOR MISSING AMERICANS THE US TEAM WAS ATTACKED LAST WEEKEND 9304070147 930407 INTERNATIONAL AS US FIRMS SEEK ACCESS TO VIETNAM INVESTORS THERE ENCOUNTER OBSTACLES BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL AFTER JEALOUSLY WATCHING INTERNATIONAL RIVALS STREAM INTO VIETNAM'S BURGEONING MARKET US COMPANIES ARE PRESSING WASHINGTON TO END ITS POSTWAR TRADE EMBARGO AND ESTABLISH DIPLOMATIC AND COMMERCIAL TIES TO HANOI BUT THE EXPERIENCES OF FOREIGN COMPANIES ALREADY DOING BUSINESS IN VIETNAM SUGGEST THE ROAD TO COMMERCIAL SUCCESS IN THE STILLCOMMUNIST SOUTHEAST ASIAN COUNTRY IS FULL OF POTHOLES WE'RE ON OUR FOURTH CONTRACT AND WE'RE DOING A PROJECT WE FEEL WOULD BE OF USE AND VALUE TO VIETNAM SAYS TIM ROBINSON MANAGER OF A PLANNED 70 MILLION PROPERTY DEVELOPMENT IN HO CHI MINH CITY THE FORMER SOUTHERN CAPITAL STILL KNOWN AS SAIGON HE SAYS VIETNAMESE BUREAUCRATS HAVE FORCED THE CONTRACT TO BE REOPENED AGAIN AND AGAIN DELAYING THE HONG KONG AND SINGAPORE BACKED PROJECT FOR NEARLY TWO YEARS NOT ONLY ARE CONTRACTS OFTEN MIRED IN MISUNDERSTANDINGS BUT MONTHLY RENTS HAVE SKYROCKETED TO 35 A SQUARE METER IN THE CITIES AND INFLATION SURGES ALONG AT MORE THAN 17 A YEAR THE LEGAL SYSTEM IS IN FLUX ELECTRICITY IS SPORADIC AND THE TELEPHONE SYSTEM WOEFULLY OUT OF DATE EVEN ARDENT PROPONENTS OF INVESTMENT IN VIETNAM COUNSEL CAUTION TO NEWCOMERS YOU HAVE EVERYBODY IN THERE TRYING TO DO BUSINESS BUT THEY STILL HAVE MANY PROBLEMS SAYS W GAGE MCAFEE A PARTNER AT THE HONG KONG OFFICE OF COUDERT BROTHERS A NEW YORK LAW FIRM THAT FOLLOWS DEVELOPMENTS IN VIETNAM IT'S LIKE CHINA IN 1983 A LOT OF POTENTIAL BUT STILL NO STRIKINGLY VISIBLE DEVELOPMENT THE POTENTIAL ACTS AS A POWERFUL MAGNET FOR INVESTORS VIETNAM'S POPULATION OF 71 MILLION IS 90 LITERATE AND MANY PEOPLE ALSO SPEAK FRENCH OR ENGLISH PEOPLE ARE HARDWORKING AND WAGES ARE LOW A DOLLAR A DAY OR LESS FOR FACTORY HELP A SMALL BUT GROWING MIDDLE CLASS BUYS CONSUMER GOODS FROM IMPORTED TOOTHPASTE TO TELEVISIONS AND THE SOCIALIST GOVERNMENT THOUGH STILL AUTHORITARIAN IS COMMITTED TO ECONOMIC REFORM WITH A SUPPORTIVE GOVERNMENT ATTITUDE A TRUE BUSINESS ENVIRONMENT A CLIMATE THAT IS CONDUCIVE FOR INTERNATIONAL COOPERATION HAS BEEN FINALLY CREATED VIETNAMESE ECONOMIST NGUYEN XUAN OANH SAID IN A RECENT WASHINGTON SPEECH FOREIGN COMPANIES APPARENTLY AGREE BY THE END OF MARCH HANOI HAD APPROVED FOREIGN INVESTMENTS IN 623 PROJECTS TOTALING 46 BILLION MORE THAN HALF WERE SET UP IN 1992 SINCE DEC 30 US COMPANIES HAVE BEEN PERMITTED TO SIGN CONTINGENCY CONTRACTS THAT CAN BECOME EFFECTIVE ONCE WASHINGTON LIFTS ITS EMBARGO SOME ARE ALREADY MOVING IN BANKAMERICA CORP PLANS TO SET UP AN OFFICE SOON ACCOUNTING FIRM ERNST & YOUNG HAS TWO OFFICES IN VIETNAM BOTH RUN BY ITS HONG KONG PARTNERSHIP AND HANOI IS HOLDING CONTRACTS ASIDE FOR BIG US OIL COMPANIES TO PARTICIPATE IN ITS OFFSHORE OIL INDUSTRY THERE'S A LOT OF INTEREST SAYS FREDERICK BURKE AN AMERICAN LAWYER IN HONG KONG WITH BAKER & MCKENZIE THE CHICAGO LAW FIRM JUST BECAME THE FIRST TO WIN A LICENSE TO OPEN AN OFFICE IN VIETNAM WHICH MR BURKE WILL STAFF WE CAN HELP AMERICAN COMPANIES NOT GO THROUGH WITH A DEAL HE JOKES ALLUDING TO CONTINGENCY CONTRACTS BUT EVEN A LAWYER CAN ONLY HELP SO MUCH IN WADING THROUGH A LEGAL SYSTEM THAT MR BURKE DESCRIBES AS A MORASS LAWS ARE BEING INTRODUCED SO RAPIDLY THAT LOCAL AUTHORITIES AND COURTS SOMETIMES AREN'T EVEN AWARE OF THEM THERE ARE NO CLEAR ROUTES FOR RESOLVING COMMERCIAL DISPUTES WHICH OFTEN ARISE IN THE JOINT VENTURES SPROUTING IN VIETNAM ALL 50 DISPUTES TAKEN TO ARBITRATION LAST YEAR IN HO CHI MINH CITY ENDED UP BEING RESOLVED THROUGH CONCILIATION MR BURKE SAYS BECAUSE PEOPLE FELT THEY HAD TO COMPROMISE REGARDLESS OF WHO WAS RIGHT AND WHO WAS WRONG AND THEY COULDN'T EVEN BE SURE A COURT WOULD ENFORCE ARBITRATION MANY DISPUTES LAWYERS AND BUSINESSMEN SAY ARISE FROM THE FAILURE OF FOREIGN COMPANIES TO SIGN CONTRACTS WITH THE RIGHT VIETNAMESE ENTITIES FOREIGNERS GET VERY EXCITED SEEING THIS POTENTIAL AND RUSH IN WITHOUT DOING DUE DILIGENCE SAYS LAURENCE J BRAHM A LEGAL ADVISER WITH NAGA GROUP LTD A CONSULTING FIRM ACTIVE IN INDOCHINA JUST BECAUSE A FOREIGN COMPANY SIGNS A CONTRACT WITH ONE APPARENTLY QUALIFIED VIETNAMESE PARTNER DOESN'T MEAN OTHER VIETNAMESE ORGANIZATIONS WON'T GET INVOLVED CASTROL VIETNAM LTD FOUND OUT THE JOINT VENTURE OF BRITAIN'S BURMAH CASTROL PLC AND A STATE OIL COMPANY ORIGINALLY DECIDED TO BUILD A 39 MILLION PLANT TO SUPPLY LUBRICANTS TO A MARKET PROTECTED BY HIGH DUTIES ON IMPORTED LUBRICANTS WHILE THE PLANT WAS UNDER CONSTRUCTION VIETNAM'S FINANCE MINISTRY LOWERED IMPORT TARIFFS CASTROL COMPLAINED AND EVENTUALLY HANOI RAISED TARIFFS AGAIN ONCE YOU'VE EXPLAINED THE PROBLEM THEY GENERALLY UNDERSTAND THE SHORTCOMING SAYS CASTROL VIETNAM'S CHIEF EXECUTIVE GEORGE WEBSTER BUT NOT ALWAYS A HONG KONG COMPANY INVESTING IN A RESIDENTIAL AND OFFICE DEVELOPMENT IN HO CHI MINH CITY WAS ABOUT TO BEGIN CONSTRUCTION WHEN IT WAS TOLD THE SIZE OF THE SITE WAS BEING REDUCED BECAUSE THE HANOI GOVERNMENT HAD SIGNED AN OVERLAPPING MEMORANDUM OF UNDERSTANDING THEN THE COMPANY WAS TOLD THE PRICE OF THE SITE HAD BEEN INCREASED BECAUSE PROPERTY VALUES WERE ON THE RISE IT'S THE WAY OF DOING BUSINESS IN DEVELOPING COUNTRIES SAYS THE HONG KONG BUSINESSMAN INVOLVED IN THE PROJECT WHO DIDN'T WANT TO BE IDENTIFIED DON'T GO IN BRIGHTEYED AND BUSHYTAILED THINKING IT WON'T HAPPEN TO YOU CONFIDENTIALITY IS ALSO A PROBLEM AT LEAST ONE COMPANY REPORTS THAT ITS PROJECT PLANS WERE CIRCULATED AMONG COMPETITORS BY VIETNAMESE OFFICIALS AND STRIKES HAVE PLAGUED COMPANIES MOSTLY FROM TAIWAN AND SOUTH KOREA THAT ARE THOUGHT BY EMPLOYEES NOT TO RESPECT LOCAL TRADITIONS MANY VIETNAMESE ALSO HARBOR MEMORIES OF THE COUNTRY'S HARD COMMUNIST PAST THERE IS STILL TENSION BETWEEN THE PEOPLE WHO THINK CAPITALISM IS OKAY AND THOSE WHO THINK IT'S EVIL SAYS MR MCAFEE WHO WORKED IN VIETNAM AS A LEGAL ADVISER TO THE STATE DEPARTMENT IN THE 1970S 9304070146 930407 WHO'S NEWS VICOR CORP VICOR CORP ANDOVER MASS THE COMPANY SAID THOMAS A ST GERMAIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WILL LEAVE THE COMPANY APRIL 30 THE POWER SYSTEMS MANUFACTURER SAID THAT MR ST GERMAIN HAS ACCEPTED THE POSITION OF VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WITH SUMMA FOUR INC SEPARATELY VICOR SAID THAT MARK GLAZER CURRENTLY CORPORATE CONTROLLER HAS BEEN PROMOTED TO VICE PRESIDENT FINANCE AND THAT DOUGLAS POWERS WHO WAS SENIOR DIRECTOR OF MANAGEMENT INFORMATION SYSTEMS WILL BECOME VICE PRESIDENT AND CHIEF INFORMATION OFFICER 9304070145 930407 WHO'S NEWS FEDDERS CORP FEDDERS CORP PEAPACK NJ GARY NAHAI 41 YEARS OLD WAS NAMED A VICE PRESIDENT AND PRESIDENT OF THE FEDDERS INTERNATIONAL INC UNIT HE SUCCEEDS JOHN BROWN 53 WHO LEFT THE COMPANY MR NAHAI PREVIOUSLY WAS VICE PRESIDENT OF SALES FOR THE NEW YORK METRO AREA FEDDERS MAKES ROOM AIR CONDITIONERS ITS INTERNATIONAL UNIT'S RESPONSIBILITIES INCLUDE ESTABLISHING JOINT VENTURES AND LICENSES GLOBAL PRODUCTION AND SALES 9304070144 930407 CD YIELDS HOLD FIRM BANK SURVEY INDICATES NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 266 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS REMAINED AT 486 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLID TO 309 FROM 311 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLIPPED TO 515 FROM 523 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE INCHED DOWN TO 275 FROM 276 ON FIVEYEAR JUMBOS THE AVERAGE CREPT UPWARD TO 5 FROM 498 ACCORDING TO BANXQUOTE 9304070143 930407 LAW LEGAL BEAT STALKING LAWS USED TO FIGHT ABORTION FOES BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL A PROTESTER IN CHARLESTON SC APPARENTLY BECAME THE FIRST ANTIABORTION ACTIVIST TO BE CHARGED CRIMINALLY WITH STALKING AFTER SHE ALLEGEDLY THREATENED THE DIRECTOR OF A CLINIC MEANWHILE IN MELBOURNE FLA A STATE CIRCUIT COURT JUDGE SAID HE WOULD ISSUE AN ORDER THIS WEEK PROTECTING ABORTION CLINIC WORKERS FROM HARASSMENT BY ANTIABORTION ACTIVISTS HE WAS RESPONDING TO A REQUEST FROM CLINIC WORKERS THAT CITED THE STATE'S STALKING LAW THESE TWO MOVES REPRESENT THE FIRST FRUITS OF AN EFFORT BY ABORTION PROVIDERS TO USE STALKING MEASURES TO PROTECT THEMSELVES SUCH MEASURES HAVE BEEN USED PRIMARILY TO PREVENT DOMESTIC VIOLENCE AND ATTACKS ON CELEBRITIES PROVIDERS ARE ASKING LEGISLATORS TO ADOPT NEW STATUTES OR AMEND CURRENT STALKING STATUTES SO THEY APPLY MORE CLEARLY TO ANTIABORTION HARASSMENT TACTICS THEY ARE GOING TO COURT TO TRY TO BROADEN THE INTERPRETATION OF SOME OF THE 33 EXISTING STALKING MEASURES THE NEW LOBBYING AND COURT CAMPAIGN COMES AFTER A STRING OF DISAPPOINTMENTS FOR ABORTION DOCTORS AND CLINIC WORKERS WHO HAVE SOUGHT MOSTLY UNSUCCESSFULLY TO USE RESIDENTIAL PICKETING AND HARASSMENT STATUTES TO GAIN PROTECTION FROM ANTIABORTION ACTIVISTS THEIR WORRIES WERE HEIGHTENED LAST MONTH WHEN ABORTION DOCTOR DAVID GUNN WAS MURDERED OUTSIDE A CLINIC WHERE HE WORKED IN PENSACOLA FLA AS THEY LOOK TO BROADER STALKING STATUTES MANY ABORTION PROVIDERS ARE PREDICTING A TOUGH FIGHT FOR PROTECTION CITY AND STATE LEGISLATORS ARE HAVING TROUBLE GRAPPLING WITH CONFLICTS BETWEEN THE PROTESTERS' RIGHT TO FREE SPEECH AND THE ABORTION PROVIDERS' RIGHT TO PRIVACY IN CALIFORNIA THE FIRST STATE TO PASS A STALKING LAW THE STATE ASSEMBLY IS CONSIDERING ONE BILL THAT WOULD MAKE IT EASIER TO PROSECUTE PROTESTERS WHO STALK ABORTION PROVIDERS AND ANOTHER TO LET THOSE TARGETED FILE CIVIL SUITS SEEKING MONETARY DAMAGES A THIRD PROPOSED MEASURE WOULD LIMIT PICKETING IN RESIDENTIAL AREAS IN CONGRESS REP NITA LOWEY A DEMOCRAT FROM NEW YORK IS SPONSORING A MEASURE THAT WOULD WITHHOLD SOME FEDERAL FUNDS FROM CITIES THAT DON'T ENFORCE LOCAL HARASSMENT AND ANTISTALKING LAWS TO PROTECT ABORTION PROVIDERS MEANWHILE IN MELBOURNE STATE CIRCUIT COURT JUDGE ROBERT MCGREGOR SAID FRIDAY HE WOULD ISSUE AN ORDER THIS WEEK BROADENING AN INJUNCTION THAT NOW BARS ANTIABORTION PROTESTERS FROM BLOCKING ACCESS TO LOCAL CLINICS JUDGE MCGREGOR DID NOT SPECIFY THE DETAILS OF HIS ORDER CLINIC ATTORNEYS INVOKING THE STALKING STATUTE HAD ASKED THAT PROTESTERS BE PROHIBITED FROM PICKETING WITHIN 500 FEET OF STAFF MEMBERS' HOMES OR MAKING HARASSING PHONE CALLS BLUNTING ANTIABORTION TACTICS WHICH HAVE DRIVEN SCORES OF DOCTORS OUT OF THE ABORTION BUSINESS HAS PROVEN DIFFICULT EVEN THOSE WHO DECRY THE PROTESTERS' ACTIONS ARE LOATH TO CIRCUMSCRIBE FIRST AMENDMENT RIGHTS AND ABORTIONRIGHTS GROUPS HAVE CHOSEN TO FOCUS THEIR POLITICAL EFFORTS ON PROTECTING WOMEN'S LEGAL RIGHTS TO HAVE ABORTIONS RATHER THAN THE RIGHTS OF DOCTORS TO PROVIDE THE SERVICE MOST OF THE ACTIONS THAT ANTIABORTION ACTIVISTS TAKE AGAINST DOCTORS ARE LEGAL PROTECTED BY FIRST AMENDMENT RIGHTS OR DIFFICULT TO PROSECUTE SAYS ELAINE METLIN WHO MANAGES THE LEGAL CLEARINGHOUSE FOR THE NATIONAL ABORTION FOUNDATION AN ABORTION PROVIDERS' GROUP I GET CALLS ALL THE TIME FROM DOCTORS WHO SAY CAN'T YOU MAKE THEM GO AWAY' AND THE ANSWER IS NO SHE SAYS WE DON'T BREAK ANY LAWS WHEN WE'RE OUT THERE SAYS TOM CYR LEADER OF A GROUP THAT HAS DOGGED DR NORMAN TOMPKINS A DALLAS OBSTETRICIAN AND GYNECOLOGIST FOR NEARLY SIX MONTHS WE DON'T DAMAGE PROPERTY WE DON'T ASSAULT ANYBODY MR CYR'S GROUP DISCLAIMS RESPONSIBILITY FOR DEATH THREATS AGAINST DR TOMPKINS DR TOMPKINS WHO HIRED 24HOURADAY SECURITY GUARDS AFTER THE MURDER OF DR GUNN HAS A MOTION PENDING IN STATE COURT FOR AN INJUNCTION AGAINST MR CYR'S DALLAS PROLIFE ACTION NETWORK HIS NEIGHBORS HAVE ASKED THE CITY COUNCIL TO PASS A LAW RESTRICTING RESIDENTIAL PICKETING BUT THE EXPERIENCE OF DR BENJAMIN VICTORIA OF BROOKFIELD WIS ILLUSTRATES HOW DIFFICULT IT IS TO SQUELCH THE HARASSMENT DR VICTORIA SEEMINGLY WON A RESOUNDING VICTORY IN 1988 WHEN THE US SUPREME COURT UPHELD AN ORDINANCE THAT HIS CITY HAD ADOPTED TO PROTECT HIM BANNING RESIDENTIAL PICKETING THAT TARGETS ONE HOUSE THERE SIMPLY IS NO RIGHT TO FORCE SPEECH INTO THE HOME OF AN UNWILLING LISTENER WROTE JUSTICE SANDRA DAY O'CONNOR FOR THE COURT BUT SHE ALSO NOTED THAT AS LONG AS PROTESTERS DIDN'T TARGET ONLY ONE HOME PICKETING WOULD BE ALLOWED THE EFFECT WAS TO RENDER THE DECISION NEARLY MEANINGLESS PICKETS ON HIS STREET CONTINUED SO DID OTHER FORMS OF HARASSMENT CONSTANT PHONE CALLS AND THREATENING LETTERS AS WELL AS VANDALISM OF HIS HOME CAR AND OFFICE FORCED TO MOVE HIS PRACTICE AND BESET WITH FINANCIAL PROBLEMS PARTLY STEMMING FROM A MALPRACTICE SUIT SPONSORED BY ABORTION OPPONENTS DR VICTORIA DECLARED PERSONAL BANKRUPTCY LAST YEAR AND PUBLICLY ANNOUNCED HE WOULD NO LONGER PERFORM ABORTIONS ABORTION PROVIDERS WHO HOPE THAT STALKING LAWS WILL VANQUISH THAT KIND OF HARASSMENT MAY BE DISAPPOINTED JERI RASMUSSEN AN ABORTION CLINIC OPERATOR IN MINNESOTA FOUND THAT HER STATE'S STALKING LAW DIDN'T HELP HER STOP HARASSMENT BECAUSE IT REQUIRES THAT THE TARGET BE UNDER THREAT OF IMMINENT PHYSICAL HARM AS A WOMAN ANY TIME SOMEONE FOLLOWS YOU OR ISSUES YOUR NAME AND ADDRESS AND URGES PEOPLE TO GO TO YOUR HOME WITHOUT YOUR CONSENT I CONSIDER THAT VIOLENCE SAYS MS RASMUSSEN BUT THE POLICE DIDN'T SEE ANY OF THIS AS THREATENING A BROADER STALKING LAW PASSED BY THE CITY WHERE SHE LIVES SHOREFIELD DID STOP PICKETING AT HER HOME AND SHE'S NOW PUSHING FOR A SIMILAR STATE MEASURE ABORTION PROVIDERS REMAIN GUARDED IN THEIR OPTIMISM ABOUT THE NEWEST LEGAL EFFORTS PAST STALKING LAWS HAVE NOT BEEN TOO HELPFUL TO US SAYS RON FITZSIMMONS EXECUTIVE DIRECTOR OF THE NATIONAL COALITION OF ABORTION PROVIDERS BECAUSE THE LAWS USUALLY REQUIRE IMMINENT FEAR OF GRAVE BODILY HARM IN THE WAKE OF DR GUNN'S DEATH HOWEVER MR FITZSIMMONS SAID HE'S ISSUED A MEMO TO ALL CLINICS SAYING LOOK IF YOU HAVE STALKING LAWS NOW'S THE TIME TO USE THEM WARNER BROTHERS INC WAS ORDERED TO PAY 16 MILLION IN DEFENDANTS' LEGAL FEES AND EXPENSES IN ITS UNSUCCESSFUL COURT BATTLE OVER THE LICENSING RIGHTS TO JAMES DEAN MEMORABILIA A FEDERAL JUDGE IN LOS ANGELES RULED LAST YEAR THAT THE TIME WARNER INC UNIT DOESN'T HAVE THE MERCHANDISING RIGHTS TO THE LATE ACTOR'S NAME AND IMAGE THAT DECISION WAS HERALDED AS A VICTORY FOR OTHER MOVIE STARS WHO COULD HAVE BEEN SUED UNDER THE SAME STUDIOCONTRACT CLAIM THAT WARNER USED IN THE DEAN CASE JUDGE WILLIAM MATTHEW BYRNE JR ORDERED WARNER TO PAY 978949 TO LOS ANGELES LAW FIRM GIBSON DUNN & CRUTCHER THE MAIN ATTORNEYS FOR THE JAMES DEAN FAMILY AND CURTIS MANAGEMENT GROUP INC WHICH LICENSES THE ACTOR'S NAME AND IMAGE THE TOTAL IN DEFENSE FEES ALSO INCLUDES 339125 FOR INDIANAPOLIS LAW FIRM KLINEMAN ROSE WOLF & WALLACK AND 293371 TO CURTIS MANAGEMENT'S INHOUSE COUNSEL A WARNER SPOKESMAN DECLINED TO COMMENT THE COMPANY HAS SAID IT IS CONSIDERING AN APPEAL OF JUDGE BYRNE'S DECISION FROM LAST YEAR CURTIS MANAGEMENT OF INDIANAPOLIS SAID IT'S CONSIDERING FILING A MALICIOUSPROSECUTION LAWSUIT AGAINST WARNER BECAUSE OF THE DEAN LITIGATION WHO'S NEWS DAVID H SPENCER IS JOINING WEIL GOTSHAL & MANGES AS HEAD OF THE NEW YORK LAW FIRM'S NEW PROJECT FINANCE GROUP MR SPENCER WAS A PARTNER AT NEW YORK'S HOWARD DARBY & LEVIN HIGHTECH ADDITIONS BOSTON LAW FIRM FISH & RICHARDSON OPENED A NEW SILICON VALLEY OFFICE AND ADDED SEVEN NEW PARTNERS SPECIALIZING IN INTELLECTUAL PROPERTY THE NEW PARTNERS IN PALO ALTO CALIF INCLUDE JAMES HA POOLEY OF GRAHAM & JAMES AND DAVID A HENDERSON OF BROWN & BAIN IN THE FIRM'S BOSTON OFFICE RONALD E MYRICK PREVIOUSLY DIGITAL EQUIPMENT CORP'S ASSISTANT GENERAL COUNSEL FOR INTELLECTUAL PROPERTY JOINED AS A PARTNER DOUGLAS BALDWIN FORMER ASSISTANT GENERAL COUNSEL INTELLECUAL PROPERTY FOR SHELL OIL CO HAS BECOME A SENIOR COUNSEL IN THE LAW FIRM'S HOUSTON OFFICE WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9304070142 930407 ABREAST OF THE MARKET INDUSTRIALS DECLINE 162 POINTS WALMART HOME DEPOT TUMBLE BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK MARKET LEADERS SUCH AS WALMART AND HOME DEPOT PLUNGED YESTERDAY BUT PRICES OVERALL WERE JUST SLIGHTLY LOWER ANALYSTS SAID THE BATTERING OF THESE HUGE WIDELY HELD RETAILERS MARKED THE NEXT PHASE IN THE GROWTHSTOCK SCARE THAT PHILIP MORRIS TRIGGERED FRIDAY TOBACCO STOCKS WERE THE FIRST HIT AFTER PHILIP MORRIS DISCLOSED THAT ITS PROFIT THIS YEAR WILL BE DEPRESSED BY PRICE COMPETITION THE SELLING QUICKLY SPREAD TO FOOD AND BEVERAGE STOCKS AND OTHER CONSUMER PRODUCT ISSUES THAT HAVE BEEN AMONG THE MARKET'S STRONGEST ENGINES IN THE PAST SEVERAL YEARS SHARES OF WALMART A BENTONVILLE ARK DISCOUNT RETAILER SKIDDED 2 OR 67 TO 27 3/4 ON MARKETLEADING VOLUME OF 146 MILLION SHARES THE STOCK OF HOME DEPOT AN ATLANTA OPERATOR OF HOMEIMPROVEMENT SUPPLY STORES LOST 3 5/8 OR 61 TO 55 5/8 ON 59 MILLION SHARES IT'S VERY WORRISOME IT'S UNSETTLING YOU HAVE SOME IMPORTANT STOCKS THAT ARE GETTING BLASTED SAID ROBERT ROBBINS A MARKET STRATEGIST AT ROBINSONHUMPHREY HE IS ADVISING INVESTORS TO BE CAUTIOUS IN THEIR STOCK PURCHASES THE DOW JONES INDUSTRIAL AVERAGE THOUGH POSTED JUST A SLIM LOSS OF 162 OR 005 TO 337757 GAINS IN ECONOMICALLY SENSITIVE AND ENERGYRELATED COMPONENTS OF THE AVERAGE HELPED TO BLUNT THE LOSSES CATERPILLAR ROSE 3/4 TO 58 7/8 GENERAL MOTORS INCREASED 5/8 TO 38 3/8 CHEVRON GAINED 1 TO 84 1/2 AND EXXON CLIMBED 5/8 TO 67 5/8 BROADER MARKET INDEXES LOST GROUND THE STANDARD & POOR'S 500 STOCK INDEX SLIPPED 113 OR 026 TO 44116 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 078 OR 032 TO 24362 SOME INVESTORS HAVE BECOME CONCERNED ABOUT THE MARKET'S NEARTERM COURSE ABSENT STRENGTH IN THE LEADERSHIP GROWTH AREAS I THINK THE MARKET IS EXTREMELY VULNERABLE RIGHT NOW SAID TIM HEEKIN HEAD OF BLOCK TRADING AT SALOMON BROTHERS PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SAID THE BUYING IN CYCLICALS WAS TIED TO BETS THAT THE ECONOMY WILL REMAIN IN A RECOVERY DESPITE RECENT SIGNS OF WEAKNESS ENERGY SHARES ROSE IN PART BECAUSE OF THEIR STATUS AS A TRADITIONAL HIGHDIVIDENDYIELD DEFENSIVE AREA GAINS IN THESE SECTORS MR CANELO SAID MIGHT BE ENOUGH TO LIFT THE INDUSTRIAL AVERAGE BACK TO RECORD LEVELS IN COMING WEEKS BUT HE PREDICTED SUCH A RALLY WOULD BE SHORTLIVED HE CITED ONGOING WEAKNESS IN THE SMALLSTOCK MARKET WHICH HE SAID IS OFTEN A LEADING INDICATOR FOR BIG BOARD SHARES SEMICONDUCTOR STOCKS PROVIDED ONE OF THE OTHER FEW BRIGHT SPOTS A STRONGERTHANEXPECTED EARNINGS REPORT FROM MICROPROCESSOR MAKER ADVANCED MICRO DEVICES HELPED SPARK THE BUYING ADVANCED MICRO JUMPED 1 1/4 TO 23 1/2 TEXAS INSTRUMENTS ROSE 1 1/8 TO 55 1/8 AND ON NASDAQ INTEL CLIMBED 1 3/8 TO 111 1/2 SUNNYVALE CALIFBASED ADVANCED MICRO POSTED FIRSTQUARTER NET INCOME OF 63 CENTS A SHARE BELOW THE 90 CENTS IT EARNED A YEAR AGO BUT ABOVE THE 54CENT MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM THE COMPANY SAID WEAKNESS IN EARNINGS FROM SALES OF 386 CHIPS WAS OFFSET BY GAINS IN PROFIT FROM OTHER PRODUCTS SHARES OF POLICY MANAGEMENT SYSTEMS TUMBLED 43 AFTER THE BLYTHEWOOD SC COMPANY SAID ITS FIRSTQUARTER EARNINGS MIGHT BE 26 CENTS TO 28 CENTS A SHARE BELOW THE 70 CENTS IT HAD EXPECTED TO POST THE STOCK FELL 36 1/4 TO 47 5/8 ON HEAVY VOLUME OF 26 MILLION SHARES AVERAGE DAILY VOLUME IN THE STOCK IS JUST 26600 SHARES THE COMPANY PROVIDES SOFTWARE AND PROCESSING SERVICES TO INSURANCE COMPANIES OBSERVERS SAID POLICY MANAGEMENT'S SLIDE DEPRESSED SOME OTHER SOFTWARE ISSUES MOST NOTABLY FIRST FINANCIAL MANAGEMENT WHICH LOST 1 5/8 TO 37 7/8 THE ATLANTA COMPANY PROVIDES CREDIT CARD AUTHORIZATION AND INFORMATION SERVICES US SURGICAL LOST 4 TO 48 5/8 HAMBRECHT & QUIST ANALYST KURT KRUGER TRIMMED HIS RATING ON THE MEDICAL DEVICE MAKER'S STOCK TO HOLD FROM BUY HE CITED CONCERN THAT US SURGICAL'S PROFIT MARGINS WILL BE DEPRESSED BY ITS DECISION TO USE THIRDPARTY DISTRIBUTORS IN ADDITION TO DIRECT SALES PRODUCTS MIGHT BE SOLD TO THE DISTRIBUTORS AT A DISCOUNT HE SAID AFTER THE MARKET CLOSED AN OFFERING OF 12 MILLION NONVOTING COMMON SHARES OF EATON VANCE WAS PRICED AT 3375 EACH STRONG INVESTOR DEMAND PROMPTED UNDERWRITERS LED BY MERRILL LYNCH TO BOOST THE SIZE OF THE OFFERING FROM AN ORIGINALLY PLANNED 11 MILLION SHARES TURNER BROADCASTING'S CLASS B STOCK TRADED ON THE AMERICAN STOCK EXCHANGE JUMPED 5/8 TO 23 1/8 TIME WARNER ADDED 3/8 TO 31 AND IN NASDAQ TRADING TELECOMMUNICATIONS CLASS A EASED 1/2 TO 17 5/8 THE WALL STREET JOURNAL REPORTED THAT TIME WARNER AND TELECOMMUNICATIONS ARE IN TALKS TO DIVIDE BETWEEN THEM THE MAIN ASSETS OF TURNER IN WHICH THEY BOTH HOLD LARGE STAKES LIFETIME CORP JUMPED 1 3/4 TO 25 1/4 AFTER ITS BOARD REJECTED A SWEETENED BID FROM ABBEY HEALTHCARE THE BOSTON PROVIDER OF INHOME HEALTH SERVICES CALLED THE 2750ASHARE CASH AND STOCK OFFER INADEQUATE AND SAID IT HIRED A FINANCIAL ADVISER TO HELP IT EXPLORE ALTERNATIVES ABBEY WHICH IS TRADED ON NASDAQ HAD ORIGINALLY OFFERED JUST 2350 IT ROSE 1/4 TO 17 3/4 ARCADIAN PARTNERS LOST 1 TO 19 3/4 AFTER THE FERTILIZER PRODUCER PREDICTED THAT ITS FIRSTQUARTER EARNINGS WILL BE LESS THAN 45 CENTS A UNIT THE LEVEL IT POSTED IN THE SAME PERIOD TWO YEARS AGO IT EARNED 80 CENTS IN 1992'S FIRST QUARTER ARMSTRONG WORLD SLUMPED 2 3/4 TO 31 3/8 THE LANCASTER PA HOME FURNISHINGS CONCERN LATE MONDAY SAID ITS FIRSTQUARTER EARNINGS FROM CONTINUING OPERATIONS WILL BE LOWER THAN THE 32 CENTS TO 48 CENTS THAT HAD BEEN EXPECTED ARROW ELECTRONICS INCREASED 2 5/8 TO 32 1/2 THE STOCK WAS PLACED IN THE STANDARD & POOR'S MIDCAP 400 INDEX REPLACING LESLIE FAY WHICH SOUGHT BANKRUPTCY PROTECTION MONDAY LESLIE FAY SHARES ROSE 7/8 TO 3 7/8 THEY FELL 2 1/4 IN THE PRIOR SESSION 9304070141 930407 WHO'S NEWS FEDERAL RESERVE BANK OF NEW YORK FEDERAL RESERVE BANK OF NEW YORK NEW YORK HERBERT L WASHINGTON 42 YEARS OLD WAS APPOINTED A CLASS C DIRECTOR SUCCEEDING CYRUS R VANCE WHO IS RESIGNING FROM THE BOARD OF THIS REGIONAL FEDERAL RESERVE BANK THE TERM EXPIRES AT THE END OF 1995 MR WASHINGTON ONE OF THE THREE NEW YORK FED DIRECTORS NAMED BY THE GOVERNORS OF THE FEDERAL RESERVE SYSTEM OWNS A ROCHESTER NY HOLDING COMPANY FOR A NUMBER OF MCDONALD'S RESTAURANTS 9304070140 930407 INTERNATIONAL GPA SEEKING TO RAISE NEW EQUITY IS HOLDING TALKS WITH GE CAPITAL SHANNON IRELAND GPA GROUP PLC AS PART OF ITS SEARCH FOR 200 MILLION IN FRESH EQUITY IS IN TALKS WITH GENERAL ELECTRIC CAPITAL CORP PEOPLE FAMILIAR WITH THE TALKS BETWEEN GPA AND GE CAPITAL A SUBSIDIARY OF GENERAL ELECTRIC CO OF THE US SAID THEY ARE STILL IN THEIR EARLY STAGES THE INDIVIDUALS DECLINED TO SAY HOW MUCH GE CAPITAL IS CONSIDERING INVESTING IN THE TROUBLED AIRCRAFTLEASING COMPANY IF GE CAPITAL DECIDES TO INVEST IN GPA IT WILL BE A REUNION OF OLD FRIENDS AND IN A SENSE CURRENT ADVERSARIES IN THE MID1980S GE CAPITAL WAS A MAJOR SHAREHOLDER IN GPA BEFORE SELLING ITS STAKE GE CAPITAL DIDN'T GET OUT OF THE BUSINESS HOWEVER AND NOW OWNS POLARIS AIRCRAFT LEASING CORP ONE OF GPA'S MAJOR COMPETITORS WITH MORE THAN 400 AIRCRAFT ON LEASE GPA WHICH IS BASED HERE DECLINED TO COMMENT ON THE TALKS GE CAPITAL IS ONLY ONE OF SEVERAL POTENTIAL NEW INVESTORS WITH WHICH GPA IS TALKING IN ITS SEARCH FOR FUNDS OTHER POTENTIAL INVESTORS INCLUDE SHANNON FREE AIRPORT DEVELOPMENT CO WHICH ALSO IS BASED HERE GPA IS EXPECTED TO GIVE THE NEW INVESTORS ABOUT ONE SHARE FOR EVERY 1 THEY INVEST THAT'S FAR BELOW THE 20 A SHARE SOUGHT LAST JUNE IN THE COMPANY'S ABORTED INITIAL PUBLIC OFFERING GPA IS BEHIND SCHEDULE ON ITS RESTRUCTURING EFFORT WHICH WAS ORIGINALLY EXPECTED TO BE COMPLETE BY LAST WEDNESDAY HOWEVER THE COMPANY HAS MADE CONSIDERABLE PROGRESS COMING CLOSE TO WRAPPING UP PACTS WITH ITS SUPPLIERS WHICH INCLUDE BOEING CO AIRBUS INDUSTRIE AND NV FOKKER GPA ALSO IS NEARING COMPLETION ON TALKS WITH ITS 130 BANKERS ABOUT RESTRUCTURING 27 BILLION IN LOANS 9304070139 930407 WHO'S NEWS COMMODITY EXCHANGE INC COMMODITY EXCHANGE INC NEW YORK SEVEN PEOPLE WERE ELECTED TO FILL SEATS ON THE 25MEMBER BOARD OF GOVERNORS OF THIS PRECIOUSMETALS EXCHANGE RAYMOND KEENAN 38YEAROLD PRESIDENT OF SHARPS PIXLEY INC CHARLES RASHER 74 AN INDEPENDENT TRADER HARVEY WACHMAN 50 PRESIDENT OF AIG CLEARING CORP ROBERT PELLEGRINO 41 AND THOMAS VITIELLO 31 BOTH INDEPENDENT TRADERS VICTOR SILANO 62 A SENIOR VICE PRESIDENT AT PAINEWEBBER INC AND ERIC PLATEIS 32 TREASURER STERLING COMMODITIES CORP ALL WERE ELECTED TO THREEYEAR TERMS 9304070138 930407 CHANGE MASTERS OUTSIDERS WHO TRANSFORM COMPANIES RESCUE SQUAD A HUNGRY BANK PRO GIVES SEDATE MELLON NEW SENSE OF URGENCY CAHOUET HIRES HIS PALS CUTS COSTS SETS 730 MEETINGS UNLOADS TROUBLED LOANS TOUGH ON EMPLOYEE MORALE BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WHAT SOME COMPANIES NEED IS AN OUTSIDER WHO IS NOT TOO FAR OUTSIDE SIX YEARS AGO DIRECTORS OF MELLON BANK CORP HIRED FRANK CAHOUET THE FIRST OUTSIDER EVER TO SERVE AS CHAIRMAN AND CHIEF EXECUTIVE OF THE 124YEAROLD INSTITUTION BUT HE WAS HARDLY A NEWCOMER TO ITS LINE OF BUSINESS AFTER 24 YEARS AT SECURITY PACIFIC CORP A TWOYEAR STINT LIFTING CROCKER NATIONAL CORP OUT OF THE RED AND THEN A TURN AT FEDERAL NATIONAL MORTGAGE ASSOCIATION MR CAHOUET HAD PROVED HIS METTLE IN THE FINANCIAL INDUSTRY MELLON AFTER DECIDING IT NEEDED AN OUTSIDER TO DEAL WITH ITS MORASS OF SOURED ENERGY REALESTATE AND LATIN AMERICAN LOANS DIDN'T EVEN LOOK BEYOND ITS OWN INDUSTRY FOR BANKING CHIEF EXECUTIVES OPERATING EXPERIENCE IS VITAL AND IN AN INDUSTRY AS CLUBBY AS BANKING SO IS REPUTATION AS A FEDERAL RESERVE BANK OFFICIAL PUTS IT FRANK CAHOUET COULD PULL IT OFF BECAUSE OF HIS CREDIBILITY IN THE MARKETPLACE MELLON'S CHOICE OF A COMPANY OUTSIDER AND INDUSTRY INSIDER SETS IT APART FROM INTERNATIONAL BUSINESS MACHINES CORP WHICH REACHED BEYOND THE COMPUTER INDUSTRY FOR A NEW CEO AND TODAY MELLON'S CHOICE APPEARS BRILLIANT AFTER TAKING OVER IN 1987 A YEAR FOR WHICH MELLON REPORTED AN 844 MILLION LOSS MR CAHOUET RESTORED PROFITABILITY IN JUST TWO YEARS WITH A 181 MILLION PROFIT IN 1989 EARNINGS HAVE CONTINUED TO GROW AND MELLON'S STOCK WHICH SLIPPED AS LOW AS 25 A SHARE THE YEAR HE TOOK OVER CLOSED YESTERDAY AT 61125 UP 125 CENTS IN 1992 MELLON'S RETURN ON ASSETS WAS ONE OF THE INDUSTRY'S BEST 146 THE INCREASE IN THE VALUE OF THE STOCK IS A WONDERFUL INDICATION OF HOW COMPLETE THE TURNAROUND IS SAYS SEWARD PROSSER MELLON A DIRECTOR SPEAKING FROM THE LIGONIER PA OFFICES OF THE MELLON FAMILY WHICH THROUGH VARIOUS INTERESTS OWNS BETWEEN 5 AND 10 OF THE BANK DRASTIC ACTION WAS NECESSARY HE ADDS AND WE TOOK IT BY BRINGING IN A MAN WE FELT WAS TOTALLY QUALIFIED TO LEAD THE BANK OUT OF ITS TROUBLES WHEN THE CALL CAME FROM MELLON'S BOARD IN 1987 MR CAHOUET WAS SERVING AS THE NO 2 EXECUTIVE AT FANNIE MAE HAVING JUST ORCHESTRATED A TURNAROUND OF CROCKER NATIONAL BEFORE ITS SALE TO WELLS FARGO & CO THE CALL WAS AN HONOR HE SAYS IT WAS ESPECIALLY SO FOR ONE OF HIS BACKGROUND IN SOME WAYS MR CAHOUET MET EVERY CONDITION FOR RUNNING MELLON BANK BUT ONE HE WASN'T FROM THE MONEYED CLASSES THE TYPICAL MELLON TOP EXECUTIVE AFTER ALL WASN'T THE SORT WHO HAD PUT HIMSELF THROUGH SCHOOL DRIVING TRUCKS AS MR CAHOUET DID THE VISIBILITY AND MYSTIQUE OF MELLON MADE THE OFFER A BIT INTIMIDATING AS DID THE EVIDENT SCALE OF THE TASK I WAS TRULY SCARED HE SAYS HAD THE COMPANY BEEN DRIFTING TOO LONG AND COULD YOU MOVE IT OUT OF THIS LETHARGY CONDITIONS WERE BAD DURING THE FIRST HALF OF THE 1980S MELLON HAD ENGAGED IN HIGHRISK LENDING AT BREAKNECK SPEED ESPECIALLY TO OVERSEAS BORROWERS AND NOW THOSE LOANS WERE GOING BAD AT AN EQUALLY FAST PACE WEAK EARNINGS IN THE 1986 FOURTH QUARTER FORESHADOWED A 60 MILLION LOSS IN 1987'S FIRST QUARTER AND MELLON STOCK HAD SUNK TO ONETHIRD ITS 1986 PEAK ALTHOUGH THE BOARD FORCED THE RETIREMENT OF J DAVID BARNES CEO SINCE 1981 THE CORPORATE CULTURE REMAINED RESISTANT TO BELTTIGHTENING EXECUTIVES FROM THE COUNTRYCLUB SET RACKED UP CORPORATE EXPENSES WITHOUT SEEKING APPROVAL OR EVEN FILLING OUT EXPENSE VOUCHERS KEPT BANKERS' HOURS AND TENDED TO ASSUME THEY HELD A POSITION FOR LIFE HAD MR CAHOUET COME FROM OUTSIDE THE INDUSTRY HE WOULD PROBABLY HAVE BEEN FORCED TO RELY ON EXISTING MANAGEMENT BUT IN DECADES OF BANKING HE HAD COME TO KNOW EXECUTIVES HE REGARDED AS ALLSTARS SUCH AS W KEITH SMITH HIS FORMER CHIEF FINANCIAL OFFICER AT CROCKER BEFORE ACCEPTING MELLON'S OFFER MR CAHOUET PERSUADED MR SMITH TO LEAVE PACCAR INC IN BELLEVUE WASH AND BECOME MELLON'S VICE CHAIRMAN AND TREASURER MR CAHOUET RECALLS I TOLD HIM I WASN'T GOING TO COME IF HE DIDN'T THAT WAS JUST THE START MR CAHOUET ARRIVED AT MELLON WITH SUCH A POSSE OF FELLOW OUTSIDERS MOSTLY FROM CALIFORNIA THAT INSIDERS DUBBED THEM THE BEACH BOYS TO MAKE WAY FOR THEM HE QUICKLY FIRED OR FORCED INTO RETIREMENT ABOUT HALF OF MELLON'S HIGHEST RANKING EXECUTIVES PSYCHOLOGICALLY IT WAS THE EQUIVALENT OF AN UNFRIENDLY TAKEOVER SAYS ANTHONY TERRACCIANO THEN A CHASE MANHATTAN CORP VICE CHAIRMAN WHOM MR CAHOUET STOLE AWAY TO SERVE AS MELLON'S PRESIDENT MR CAHOUET DIDN'T LIMIT HIS CUTS TO THE EXECUTIVE RANKS WITHIN A YEAR HE ELIMINATED MORE THAN 3700 JOBS OR 18 OF THE WORK FORCE HE ALSO IMPOSED STRICT SPENDING LIMITS ONCE EVEN BANNING ALL ORDERS OF NEW OFFICE SUPPLIES IT REACHED A POINT WHERE WORKERS WERE RUMMAGING THROUGH THE DESKS OF DEPARTED EMPLOYEES IN SEARCH OF PENS AND PAPER CLIPS ON CERTAIN ISSUES YOU'VE GOT TO GO ALL THE WAY DOWN TO THE BOTTOM MR CAHOUET EXPLAINS BESIDES REDUCING EXPENSES HE SAYS HE SOUGHT TO INSTILL A SENSE OF URGENCY WITHIN DAYS OF ARRIVING MR CAHOUET WAS HOLDING 730 AM STAFF MEETINGS RECALLS ONE FORMER TOP EXECUTIVE SAYS MR CAHOUET MY STYLE AND THE STYLE OF THE VERY CONTEMPORARY MANAGER IS TO MAKE DECISIONS QUICKLY TO DRIVE FOR CONCLUSIONS TO BE INTOLERANT OF PEOPLE WHO ARE NOT REALLY TRYING THEIR HARDEST AND TO BE IMPOLITE WHERE NECESSARY AWARE THAT IMPROVEMENTS WOULDN'T COME OVERNIGHT AND EAGER TO FORESTALL BOARD IMPATIENCE MR CAHOUET IMMEDIATELY INVOLVED DIRECTORS TELLING THEM IT'S VERY VERY IMPORTANT THAT YOU STAY CLOSE AND I CAN COMMUNICATE WITH YOU HE TAPPED INDIVIDUAL DIRECTORS TO WORK ON PROJECTS MET FOR HOURS AT A TIME WITH COMMITTEES AND TOOK DIRECTORS ON TRIPS TO MEET BANK REGULATORS ANDREW W MATHIESON A BOARD MEMBER AND REPRESENTATIVE OF THE MELLON FAMILY SAYS THAT DIRECTORS HAVING BEEN FORCED TO TAKE CONTROL OF THE TROUBLED BANK WERE ONLY TOO HAPPY TO RELINQUISH IT TO A TAKECHARGE CEO THE SWIFT AND RADICAL NATURE OF MR CAHOUET'S MOVES DIDN'T SHOCK THE BOARD SAYS MR MATHIESON BECAUSE WE'D ALREADY BEEN SHOCKED BY THE SERIOUSNESS OF THE SITUATION BUT CUTTING COSTS AND ENLISTING NEW MANAGEMENT WASN'T ENOUGH MELLON NEEDED A BIG CASH INFUSION AND ONCE AGAIN MR CAHOUET LEANED ON THE CONTACTS HE HAD MADE A A BANKER ONE DAY A LIGHT BULB WENT OFF I SAID I KNOW A GUY I LIKE AND TRUST AND WHO I THINK TRUSTS ME MR CAHOUET SAYS OF LIONEL PINCUS A NEW YORK INVESTOR WHOM HE MET 30 YEARS EARLIER WHEN HE WAS MR PINCUS'S BANKER AT SECURITY PACIFIC THEIR CONVERSATION AT MR PINCUS'S NEW YORK APARTMENT EVENTUALLY LED TO A GOODBANK/BADBANK SCHEME CONSISTING OF AN INNOVATIVE SPINOFF OF 1 BILLION OF MELLON'S PROBLEM LOANS ALTHOUGH SOME OTHER TROUBLED BANKS HAVE SINCE EMPLOYED THIS STRATEGY MR CAHOUET WAS A PIONEER OF IT AND ONE OF THE FEW BANKERS TO COMPLETELY FREE HIS INSTITUTION OF RESPONSIBILITY FOR THE PROBLEM LOANS ABOUT 500 MILLION OF JUNK BONDS FLOATED BY MICHAEL MILKEN OF DREXEL BURNHAM LAMBERT PERMITTED CREATION OF GRANT STREET NATIONAL BANK HOLDER OF MELLON'S PROBLEM LOANS THE PLAN WAS CRITICIZED BY WALL STREET ANALYSTS FOR DILUTING SHAREHOLDER VALUE BUT TODAY THEY CONCEDE IT WAS THE RIGHT MOVE MELLON MAY NOT HAVE SURVIVED IF HE HADN'T BROUGHT IN THAT NEW CAPITAL SAYS DENNIS SHEA OF MORGAN STANLEY NEXT MR CAHOUET SET OUT TO MAKE MELLON AN ALTOGETHER DIFFERENT KIND OF BANK WE HAD BEEN A MONEYCENTER BANK PLAYING IN A LEAGUE WE PROBABLY SHOULDN'T HAVE BEEN PLAYING IN HE SAYS REFERRING TO INTERNATIONAL AND CORPORATE LENDING DETERMINED TO MAKE MELLON MORE OF A CONSUMER BANK MR CAHOUET USED THE STRENGTH GAINED BY THE EQUITY OFFERING TO HELP FINANCE AN ACQUISITION SPREE IN 1992 HE PAID 15 BILLION FOR AMERICAN EXPRESS CO'S BOSTON CO AND GRABBED THE NO 1 SPOT IN PHILADELPHIA BANKING BY ACQUIRING MERITOR SAVINGS BANK IN A 181 MILLION FEDERALLY ASSISTED CASH TRANSACTION SOME OF THE ACQUIRED COMPANIES HAD THRIVING CONSUMER LOAN BUSINESSES AND SUCH CREDITS NOW ACCOUNT FOR 50 OF MELLON'S LOAN PORTFOLIO UP FROM 20 WHEN MR CAHOUET ARRIVED THANKS TO OTHER DIVERSIFICATION EFFORTS MELLON'S REVENUE IS NOW EVENLY SPLIT BETWEEN TRADITIONAL INTERESTPRODUCING LOANS AND FEEPRODUCING MONEY MANAGEMENT AND DATA PROCESSING SERVICES NOT ALL OF THE BANK'S IMPROVEMENTS ARE ATTRIBUTABLE TO MR CAHOUET IN FACT ONE PURPOSE OF THE MANAGEMENT TEAM HE ASSEMBLED WAS TO DISTRIBUTE THE BURDEN OF CURING MELLON'S ILLS IN GIVING THE MELLON PRESIDENCY TO MR TERRACCIANO THE CHAINSMOKING COFFEEDRINKING SON OF A BAYONNE NJ LABORER MR CAHOUET MEANT TO OFFSET HIS OWN ABSTEMIOUS STRAIGHTARROW PERSONALITY YOU DON'T WANT TO GET PEOPLE WHO ARE CARBON COPIES OF YOURSELF SAYS MR CAHOUET HE GAVE MR TERRACCIANO A SAY IN HIRING DECISIONS AND BROAD AUTONOMY OVER DAYTODAY OPERATIONS FREEING HIMSELF TO PLOT MELLON'S FUTURE THE TWO MEN CREATED ENERGY IN THE SLUGGISH BANK WITH LIVELY POLICY DEBATES THAT SURPRISED MELLON VETERANS UNACCUSTOMED TO OPEN DISAGREEMENT AMONG EXECUTIVES THE OLD MELLON STYLE MIGHT NOT HAVE ACCEPTED THAT MR TERRACCIANO SAYS ADDING I'M ITALIAN I'M NOT IN CONTROL OF ANY OF MY EMOTIONS HE ALSO RELIED ON OTHERS TO REACH OUT TO THE COMMUNITY HE TAPPED GEORGE T FARRELL A LONGTIME MELLON EXECUTIVE WHO IS NOW DECEASED TO SERVE AS AMBASSADOR TO CUSTOMERS CONCERNED ABOUT TIGHTENING CREDIT UNDER MELLON'S NEW CORPORATE LENDING PROGRAM OR ABOUT THE HIGH RATE OF TURNOVER AMONG LOAN OFFICERS UNDER MR CAHOUET HE WOULD INTERPRET SOME OF OUR ACTIONS AND PUT IT IN PITTSBURGHESE SAYS MR CAHOUET ONE CRITICISM OF MR CAHOUET IS THAT WHILE SQUEEZING COSTS ELSEWHERE HE RENOVATED THE BANK'S EXECUTIVE OFFICES THESE ARE NOT LAVISH OFFICES IN BANKING TERMS HE SAYS WE THINK WE DID THESE OFFICES TASTEFULLY AND INEXPENSIVELY THEN THERE IS THE MATTER OF HIS COMPENSATION TO LURE HIM AND MR TERRACCIANO TO MELLON THE BOARD PAID THEM A COMBINED 15 MILLION IN SIGNING INCENTIVES BONUSES AND SALARIES CONTINUING TO REWARD MR CAHOUET LAST YEAR THE BOARD PAID HIM A SALARY AND BONUS OF 13 MILLION A 117 MILLION INCENTIVE AWARD WHICH HE USED TO EXERCISE OPTIONS ON 45500 SHARES AND 290000 STOCK OPTIONS THE OFFICE RENOVATION AND MR CAHOUET'S PAY DIDN'T HELP MORALE WHICH WAS BAD BEFORE MR CAHOUET ARRIVED AND BECAME ABYSMAL AFTERWARD RICHARD GAUGH VICE CHAIRMAN IN CHARGE OF RETAIL BANKING AND AN OLD MELLON HAND WHOM MR CAHOUET KEPT ON BOARD BELIEVES MR CAHOUET COULD HAVE MADE HIS CHANGES IN A LESS TRAUMATIC WAY WHAT WE SHOULD HAVE DONE IS INVESTED A LITTLE MORE IN COMMUNICATING DOWNWARD ABOUT THE FUNDAMENTAL OBJECTIVES MR GAUGH SAYS MR CAHOUET SAYS HE TRIED ALLEVIATING EMPLOYEE DISTRESS ONCE FOR INSTANCE HE TOOK OUT FULLPAGE NEWSPAPER ADS THANKING THEM FOR THEIR HARD WORK NOBODY CRITICIZES MR CAHOUET'S WORK ETHIC HE ARRIVES AT HIS DESK BY 6 AM LEAVING NO EARLIER THAN 6 PM WEEKENDS AND HOLIDAYS ARE WORKDAYS AND A FAX MACHINE ACCOMPANIES HIM ON VACATIONS ONE SUBORDINATE RECALLS HAVING TO ABANDON A HOUSE FULL OF GUESTS ONE CHRISTMAS DAY BECAUSE MR CAHOUET CALLED HIM IN TO WORK AND MR CAHOUET DOESN'T GLOAT ABOUT HIS RISE FROM HARDLABOR JOBS TO THE TOP OF MELLON BANK ONE TIME I ASKED HIM ABOUT COMING SO FAR RECALLS HIS ELDEST SON HE WAS EXTREMELY MODEST TO THE POINT WHERE I SAID DAD SMELL THE COFFEE YOU'RE DOING PRETTY WELL' HE DIDN'T ANSWER 9304070136 930407 FOREIGN EXCHANGE ANALYSTS SCALE BACK HOPES FOR DOLLAR'S PERFORMANCE BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THIS WAS SUPPOSED TO BE THE YEAR OF THE DOLLAR WHICH SOME ANALYSTS PREDICTED WOULD CLIMB AS MUCH AS 23 AGAINST THE MARK AND OTHER EUROPEAN CURRENCIES INSTEAD THE US CURRENCY HAS FALLEN 1 AGAINST THE MARK AND 85 AGAINST THE YEN ANALYSTS AND TRADERS STILL THINK THE DOLLAR WILL RISE LATER THIS YEAR BUT NOT AS HIGH AS PREVIOUSLY FORECAST AND POSSIBLY NOT UNTIL AFTER IT SINKS SOME MORE WHAT'S GONE WRONG SO FAR IS THAT TRADERS INVESTORS AND ANALYSTS FOR THE THIRD SUCCESSIVE YEAR BECAME VERY ENTHUSIASTIC ABOUT INTERESTRATE CHANGES THAT HAVEN'T MATERIALIZED SAYS GEORGE MAGNUS CHIEF INTERNATIONAL FIXEDINCOME ECONOMIST AT SG WARBURG & CO IN LONDON GERMAN RATES HAVEN'T COME DOWN AS QUICKLY AS PEOPLE HAD ANTICIPATED ON THE OTHER SIDE PEOPLE HAVE BEEN CONSISTENTLY FORECASTING HIGHER AMERICAN RATES WHICH SHOW NO SIGNS OF MATERIALIZING IN THE NEAR FUTURE WHILE BAD NEWS FOR DOLLAR BULLS THE DOLLAR'S LINGERING WEAKNESS IS A BOON TO US INVESTORS IN FOREIGN STOCKS AND BONDS THE RISK TO AN OVERSEAS PORTFOLIO ISN'T AS GREAT AS MANY THOUGHT IT WAS EARLY IN THE YEAR SAYS MR MAGNUS ALTHOUGH THE CAPITAL GAINS PROSPECTS APPEARED TO BE BRIGHTER IN EUROPE THAN THE US THE BIG RISK FOR AMERICAN INVESTORS WAS THAT A STRONGER DOLLAR WOULD REDUCE OR EVEN WIPE OUT THOSE GAINS NOW IT LOOKS AS THOUGH IT MIGHT NOT ONLY BE AN UNNECESSARY COST TO HEDGE BUT THAT A WEAKER DOLLAR WILL ACTUALLY ADD TO PERFORMANCE IN THE SECOND QUARTER SAYS MR MAGNUS IT ALREADY HAS SO FAR THIS YEAR THE DOLLAR'S FALL AGAINST THE YEN HAS TURNED THE TOKYO STOCK MARKET'S 183 GAIN INTO A 306 WINDFALL FOR US INVESTORS SIMILARLY DOLLAR WEAKNESS HAS REWARDED AMERICANS WITH A 105 GAIN IN DUTCH STOCKS 11 IN FRENCH AND 88 IN GERMAN ALL CLOSE TO EACH STOCK MARKET'S PERFORMANCE IN LOCAL CURRENCY TERMS ONLY IN ITALY WHERE THE LIRA HAS BEEN POUNDED BY CORRUPTION SCANDALS AND POLITICAL TURMOIL HAS THE US INVESTOR BEEN HURT SIGNIFICANTLY IN LATE NEW YORK TRADING YESTERDAY THE DOLLAR STOOD AT 16120 MARKS AND 11403 YEN UP FROM 15948 MARKS AND 11370 YEN ON MONDAY THE BRITISH POUND SLIPPED TO 15145 FROM 15210 A DAY EARLIER ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16103 MARKS AND AT 11410 YEN MANFRED TOTZAUER A SENIOR TRADER AT CITIBANK AG IN FRANKFURT ATTRIBUTED THE DOLLAR'S REBOUND TO SHORTCOVERING BY TRADERS WHO HAD EARLIER SOLD DOLLARS ON A BET THAT CURRENCY WOULD KEEP FALLING BUT DECIDED TO BUY THEM BACK BEFORE THE LONG EASTER WEEKEND TRADERS ALSO SAID BIG JAPANESE INSURANCE COMPANIES BOUGHT DOLLARS AT AROUND 114 YEN AND THAT A SOUTHEAST ASIAN CENTRAL BANK HAD BOUGHT DOLLARS AT 15975 MARKS IN LARGE AMOUNTS STILL NOTING THAT SOME BIG INVESTMENT FUNDS AND BIG SPECULATORS ARE POSITIONED FOR A DOWN MOVE THE NEXT THREE OR FOUR WEEKS MR TOTZAUER SAYS THE DOLLAR COULD TUMBLE TO 150 MARKS BEFORE RALLYING TO 170 MARKS BY YEAREND THE DOLLAR'S WEAKNESS IS THE RESULT OF EXCESSIVE PARANOIA OVER THE STATE OF THE US ECONOMIC RECOVERY AT A TIME OF EXCESSIVE CAUTION BEING EXHIBITED BY THE BUNDESBANK IN LOWERING GERMAN INTEREST RATES SAYS AVINASH PERSAUD A SENIOR CURRENCY ECONOMIST AT UBS LTD LONDON HE POINTS OUT THAT THE CURRENT MOOD OF THE MARKET IS IN SHARP CONTRAST TO LAST YEAR WHEN TRADERS AND INVESTORS WERE EXCESSIVELY OPTIMISTIC ABOUT CHANCES FOR A US RECOVERY THAT WAS LATE IN ARRIVING HAVING THAT OPTIMISM DASHED HAS FORCED THE MARKET INTO AN OVERLY PESSIMISTIC MOOD SAYS MR PERSAUD FEEDING THAT WOE SAY TRADERS AND ANALYSTS IS A SLEW OF ECONOMIC DATA THAT SHOW US GROWTH HAS SLOWED FROM ITS FAST 47 PACE OF THE FOURTH QUARTER A WIDENING US TRADE DEFICIT AND SIGNS OF FALTERING US CONSUMER AND BUSINESS CONFIDENCE THERE ALSO IS CONCERN THAT THE DOLLAR FAILED TO RALLY SIGNIFICANTLY DURING THE LATEST BOUT OF RUSSIAN POLITICAL TURMOIL MICHAEL GERDING AN INTERNATIONAL PORTFOLIO MANAGER AT FOUNDERS ASSET MANAGEMENT INC IN DENVER SAYS THAT MANY INVESTORS AND TRADERS WHO EARLIER THIS YEAR BOUGHT DOLLARS IN EXPECTATION OF A RALLY HAVE LATELY BEEN BAILING OUT THAT'S BECAUSE WITH THREEMONTH GERMAN INTEREST RATES YIELDING 47 PERCENTAGE POINTS MORE THAN COMPARABLE US RATES IT'S INCREASINGLY EXPENSIVE TO BET ON A RISING DOLLAR AND FALLING MARK NONETHELESS MANY ANALYSTS ARE STICKING TO THEIR PREDICTIONS OF A STRONGER DOLLAR ALBEIT NOT THE 190 TO 200 MARKS THAT SOME HAD FORECAST LATE LAST YEAR THERE IS NO REASON TO CHANGE THE QUITE OPTIMISTIC FORECAST FOR THE US ECONOMY AND AS LONG AS THIS IS THE CASE WE STILL SHOULD EXPECT A STRENGTHENING OF THE US DOLLAR SAYS PETER PIETSCH AN ECONOMIST AT COMMERZBANK AG IN FRANKFURT AT THE END OF JUNE HE SEES THE US CURRENCY TRADING AT 165 MARKS AND AT ROUGHLY 170 MARKS BY THE END OF THIS YEAR UP JUST 25 TO 56 ABOVE CURRENT LEVELS AND EVEN THOSE GURUS WHO SEE THE DOLLAR STRENGTHENING TO 120 YEN NOTE THAT REPRESENTS A RISE OF ONLY 5 WITH THESE SCENARIOS RISK IS FAIRLY LIMITED FOR THE US INVESTOR ABROAD SAYS MR PIETSCH NOTING THAT RECENT DATA POINT TO THE US ECONOMY GROWING AT 335 IN 1993 MR PERSAUD OF UBS SAYS WHILE NOT THE KIND OF FIGURES TO WRITE HOME ABOUT IT STANDS IN STARK CONTRAST TO EUROPE THE GAP BETWEEN US AND GERMAN GROWTH IS AN UNPRECEDENTED FIVE PERCENTAGE POINTS IT IS THAT GAP HE PREDICTS WHICH WILL DRIVE THE DOLLAR TO 180 MARKS BY YEAREND BUT IT COULD TAKE TIME BEFORE THE DOLLAR CAN RECOVER THE MARKET NEEDS TO BE ALMOST OVERLY CONVINCED THAT THERE IS A US ECONOMIC RECOVERY BECAUSE OF ITS PESSIMISTIC MOOD SAYS MR PERSAUD INDEED MR MAGNUS OF SG WARBURG IS BEARISH ON THE US CURRENCY IN THE NEAR TERM WITH US SHORTTERM INTEREST RATES AT 3 AND INFLATION AT 3 HE NOTES THAT US MONEY MARKET INVESTMENTS OFFER NO REAL OR INFLATIONADJUSTED YIELD YET WITH GERMAN SHORTTERM RATES CURRENTLY AT ROUGHLY 8 AND INFLATION AT ABOUT 4 THE SAME CALCULATION GENERATES A REAL INTEREST RATE OF ABOUT 4 FOR JAPAN IT'S ABOUT 2 WHAT'S MORE MR MAGNUS SAYS THE AMERICAN POSITION MIGHT NOT CHANGE MUCH THAT'S BECAUSE THE US ECONOMY WON'T BE STRONG ENOUGH AND INFLATION WON'T BE A BIG ENOUGH PROBLEM TO PERSUADE THE FEDERAL RESERVE TO RAISE INTEREST RATES BUT IF GERMANY'S CENTRAL BANK CUTS INTEREST RATES TO 65 TO COUNTER THE COUNTRY'S DEEPENING RECESSION AND GERMAN INFLATION RECEDES TO 35 AS MANY ANALYSTS PREDICT THERE IS STILL A REAL POSITIVE INTEREST RATE OF ABOUT 25 AGAINST SOMETHING CLOSE TO ZERO IN THE US SAYS MR MAGNUS EVEN THOUGH EVERYBODY EXPECTS A BIG DROP IN GERMAN INTEREST RATES THE GAP IN REAL RATES WHILE IT WILL DIMINISH ISN'T GOING TO EVAPORATE ENTIRELY CONSEQUENTLY HE SAYS HE BELIEVES THE DOLLAR HAS THE POTENTIAL TO FALL AS LOW AS 150 MARKS AND 106 OR 107 YEN DURING THE NEXT THREE MONTHS SUCH TALK IS EVEN BETTER NEWS FOR US INVESTORS IN FOREIGN STOCKS AND BONDS 9304070135 930407 AMTECH TO PROVIDE AUTOMATED SYSTEM FOR THRUWAY TOLLS ALBANY NY THE NEW YORK STATE THRUWAY AUTHORITY SAID IT PLANS TO INSTALL AMTECH CORP'S AUTOMATIC TOLLCOLLECTION SYSTEM ON A LIMITED BASIS IN THE NEW YORK CITY AND BUFFALO AREAS TERMS OF THE AGREEMENT WEREN'T DISCLOSED BUT ANALYSTS ESTIMATED IT MIGHT GENERATE AS MUCH AS 2 MILLION IN REVENUE IN 1993 FOR THE DALLAS COMPANY MORE IMPORTANTLY THOUGH THE ANNOUNCEMENT REPRESENTS INCREASING ACCEPTANCE OF AMTECH'S TECHNOLOGY FOR AUTOMATED IDENTIFICATION SYSTEMS AND COULD GIVE THE COMPANY THE EDGE IN THE COMPETITION FOR A MUCH LARGER REGIONAL CONTRACT THE COMPANY'S STOCK SOARED 19 MONDAY IN NATIONAL OVERTHECOUNTER TRADING APPARENTLY IN RESPONSE TO THE AGENCY'S EARLIER ANNOUNCEMENT OF THE AGREEMENT IN COMPOSITE TRADING YESTERDAY HOWEVER THE STOCK TUMBLED 275 TO 30 A SHARE THE AMTECH SYSTEM ALLOWS MOTORISTS TO PAY TOLLS WITHOUT HAVING TO STOP BY USING A SMALL WINDSHIELDMOUNTED TOLL TAG THAT CAN BE RECOGNIZED BY AN ELECTRONIC DEVICE THE DEVICE CAN READ THE TOLL AMOUNT FROM THE CODED TAG AND DEDUCT THAT AMOUNT FROM A PREPAID ACCOUNT THE ELECTRONIC SYSTEM CAN PROCESS AS MANY AS 1200 VEHICLES AN HOUR COMPARED WITH ABOUT 350 IN A CONVENTIONAL LANE MONITORED BY A PERSON A COMPANY SPOKESMAN SAID A BIGGER PRIZE STILL AWAITS THE NEW YORK THRUWAY AUTHORITY IS PART OF AN INTERAGENCY GROUP THAT IS SELECTING A REGIONAL AUTOMATED SYSTEM FOR USE IN FOUR NORTHEAST STATES AMTECH IS VYING FOR THE CONTRACT WITH A JOINT EFFORT BY MARK IV INDUSTRIES INC AN AMHERST NY ELECTRONIC INDUSTRIAL EQUIPMENT CONCERN AND AMERICAN TELEPHONE & TELEGRAPH CO AN INFORMATION MOVEMENT AND MANAGEMENT COMPANY BASED IN BASKING RIDGE NJ THE DECISION ON WHO WILL WIN THE CONTRACT HAS BEEN DELAYED SO THAT FURTHER TESTS CAN BE CONDUCTED THE NEW YORK AGENCY SAID JAMES POYNER AN ANALYST AT RAUSCHER PIERCE REFSNES INC IN DALLAS SAID SOME ESTIMATES HAVE PLACED THE VALUE OF THE REGIONAL CONTRACT AS HIGH AS 100 MILLION OVER SEVERAL YEARS ALTHOUGH HE IS SKEPTICAL IT WILL BE THAT HIGH 9304070134 930407 TECHNOLOGY AMD'S FIRSTPERIOD NET EXCEEDS EXPECTATIONS DESPITE 28 DECLINE BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL ADVANCED MICRO DEVICES INC POWERED BY OVERSEAS DEMAND FOR ITS CLONE OF INTEL CORP'S 386 MICROPROCESSOR EXCEEDED ANALYSTS' FORECASTS FOR FIRSTQUARTER EARNINGS EVEN THOUGH THEY DECLINED 28 NET INCOME FELL TO 615 MILLION OR 63 CENTS A SHARE FROM 849 MILLION OR 90 CENTS A SHARE A YEAR EARLIER SALES WERE FLAT AT 4074 MILLION EVEN SO AMD'S PERFORMANCE CAUGHT WALL STREET OFF GUARD DESPITE RECENTLY RISING EXPECTATIONS ANALYSTS HAD STILL PREDICTED THAT AMD'S PROFIT WOULD BE IN THE RANGE OF 47 MILLION TO 52 MILLION THE COMPANY MANAGED TO BEAT OUR EXPECTATIONS SAID DREW PECK AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP IN NEW YORK THE COMPANY'S PRODUCTS ARE DOING PROLIFICALLY WELL AFTER THE EARNINGS ANNOUNCEMENT YESTERDAY AMD SHARES JUMPED 125 TO 2350 IN LATE NEW YORK STOCK EXCHANGE TRADING AMD'S RISE BUOYED OTHER SEMICONDUCTOR ISSUES AMID A MARKET THAT WAS OTHERWISE SOUR ON HIGHTECHNOLOGY ISSUES AMD'S EARNINGS WERE DOWN IN THE QUARTER BECAUSE THE MICROCHIP COMPANY WAS HIT BY A HIGHER TAX RATE PLUS SEVERELY ERODED PRICES OF ITS AM386 MICROPROCESSOR A CLONE OF INTEL'S 386 BUT ANALYSTS SAID ITS EARNINGS WERE BETTER THAN EXPECTED IN PART BECAUSE OF STRONG OVERSEAS SALES OF ITS 386 CHIP IN GENERAL 386 MICROPROCESSORS HAVE BEEN OVERTAKEN IN THE US BY INTEL'S NEWEST MICROPROCESSOR THE 486 AS THE BRAINS OF PERSONAL COMPUTERS HOWEVER MR PECK NOTED THAT OUTSIDE THE US ESPECIALLY IN EUROPE AND THE PACIFIC BASIN THE 386 IS STILL IMMENSELY POPULAR MEMORY CHIP SALES SURGED PACED BY A 66 INCREASE IN SALES OF SOCALLED FLASH MEMORY CHIPS TO 392 MILLION FROM 236 MILLION IN THE PRECEDING QUARTER FLASH MEMORY IS A NEW GENERATION OF NONVOLATILE MEMORY CHIPS WHICH SAVE THEIR DATA EVEN DURING A POWER FAILURE INVENTED BY SCIENTISTS AT JAPAN'S TOSHIBA CORP FLASH MEMORY IS DISPLACING OLDER EEPROM DEVICES OR ELECTRICALLY ERASABLE PROGRAMMABLE READONLY MEMORY IN GENERAL JAPANESE COMPANIES ADEPT IN EEPROMS HAVEN'T YET EMERGED AS MAJOR SUPPLIERS OF FLASH MEMORY MR PECK SAID IN ADDITION INTEL'S RECENT PROBLEMS IN PRODUCING FLASH MEMORY CHIPS CREATED A WINDFALL OF DEMAND FOR AMD'S PRODUCT INDEED MORE THAN THE COMPANY COULD SHIP CERTAINLY INTEL'S STUMBLING CREATED AN OPPORTUNITY FOR US AN AMD SPOKESMAN ACKNOWLEDGED IN SUNNYVALE CALIF BUT WE ALSO THINK IT'S THE SUPERIORITY OF OUR PRODUCTS HE ADDED ASSERTING THAT AMD HAD ACHIEVED THE INDUSTRY'S FIRST FIVEVOLT FLASH CHIP AS WELL AS FLASH CHIPS THAT CAN BE ERASED AND REPROGRAMMED AS MANY AS 100000 TIMES THE GROWTH IN FLASH IS GOING TO BE ENORMOUS WE'RE EXPECTING A 350 YEARTOYEAR GROWTH IN DOLLAR SALES OF FLASH PRODUCTS THE SPOKESMAN SAID IN A RELATED MOVE AMD ANNOUNCED YESTERDAY IT SIGNED A PACT LAST WEEK TO FORM A JOINT VENTURE WITH FUJITSU LTD LARGELY DEDICATED TO THE MANUFACTURE OF FLASH CHIPS THE SPOKESMAN SAID AMD WILL INVEST 350 MILLION IN THE PROJECT WJ SANDERS AMD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER YESTERDAY PREDICTED THE COMPANY'S IMPROVING PRODUCT PORTFOLIO AND STRONG BOOKINGS WILL MAKE 1993 OUR THIRD STRAIGHT YEAR OF RECORD SALES AND EARNINGS ACCORDINGLY ANALYSTS WERE BUSILY UPDATING THEIR OUTLOOK MR PECK SAID HE BOOSTED HIS FORECAST FOR AMD'S FULLYEAR PROFITS ABOUT 16 TO 235 MILLION OR 250 A SHARE UP FROM HIS PREVIOUS FORECAST OF 202 MILLION OR 215 A SHARE 9304070133 930407 HEILIGMEYERS SALES UP RICHMOND VA HOME FURNISHINGS RETAILER HEILIGMEYERS CO SAID MARCH SALES ROSE 23 TO 526 MILLION FROM 428 MILLION A YEAR EARLIER THE COMPANY OPERATES 429 STORES IN 16 STATES 9304070132 930407 LEISURE & ARTS ON SPORTS FAB FIVE FALL BY FREDERICK C KLEIN NEW ORLEANS DEAN SMITH THE UNIVERSITY OF NORTH CAROLINA BASKETBALL COACH GENERALLY IS A CAGEY MAN NOT KNOWN FOR HIS SENSE OF HUMOR BUT AT A PRESS CONFERENCE HERE ON SUNDAY THE DAY BEFORE HIS TEAM WAS TO PLAY THE UNIVERSITY OF MICHIGAN FOR THE NCAA CHAMPIONSHIP A REPORTER MENTIONED THAT A TARHEEL PLAYER HAD SAID SMITH HAD BEEN FUNNIER THIS SEASON THAN IN YEARS PAST AND ASKED IF THE COACH AGREED IT MUST HAVE BEEN A SENIOR WHO SAID THAT SMITH REPLIED IT TAKES THE KIDS AWHILE TO GET TO KNOW ME ON MONDAY NIGHT IN THE BEDLAM OF THE NEW ORLEANS SUPERDOME SMITH HAD ANOTHER OPPORTUNITY FOR A MILD WITTICISM AND COULDN'T PASS IT UP PLAY WAS HALTED WITH 11 SECONDS ON THE CLOCK AFTER SOPHOMORE CHRIS WEBBER THE BIG MICHIGAN FORWARD HAD CALLED THE FATEFUL AND ILLEGAL EXTRA TIMEOUT THAT COST HIS TEAM POSSESSION OF THE BALL AND A CHANCE TO PULL EVEN OR BETTER FROM A 7173 DEFICIT AS HIS TARHEELS HUDDLED AROUND HIM BEFORE GUARD DONALD WILLIAMS WOULD SHOOT THE TECHNICALFOUL FREE THROWS THAT WOULD CEMENT THE WIN SMITH SAID TO NO ONE IN PARTICULAR THEY MICHIGAN ASKED FOR A TIMEOUT AND I GUESS THEY GOT IT A MINUTE OR SO AND FOUR FREETHROW POINTS LATER NORTH CAROLINA SMILES WOULD BE BROADER STILL AND THE CAUSE WOULD NOT BE PRIVATE THE BOARD WOULD READ 00 SECONDS LEFT AND THE SCORE 7771 IN THE TARHEELS' FAVOR THE 62YEAROLD SMITH THE MAN WITH THE PLAN HAD WON HIS SECOND NATIONAL CHAMPIONSHIP IN 32 YEARS ON THE JOB AT CHAPEL HILL AND HIS VIEW WOULD BE APPROPRIATELY LONG REMINDED THAT HIS FIRST NCAA CROWN SEIZED ON THIS SAME SUPERDOME FLOOR 11 YEARS BEFORE HAD ENDED WITH A GEORGETOWN PLAYER THROWING AWAY A LASTSECONDS PASS THAT MIGHT HAVE GIVEN HIS TEAM A CHANCE TO OVERCOME A ONEPOINT DEFICIT SMITH SAID YOU CAN'T SAY ONE PLAY WINS A GAME IT'S ALL PART OF BASKETBALL YOU HAVE TO BE GOOD AND LUCKY NORTH CAROLINA WAS BOTH IN A FINAL THAT IF NOT THE BEST IN MEMORY WAS CERTAINLY ONE OF THE MOST EVENLY CONTESTED THE TWO TEAMS WERE MIRROR IMAGES OF ONE ANOTHER BIG WHERE GOOD TEAMS ARE SUPPOSED TO BE BIG SWIFT WHERE SWIFTNESS IS CALLED FOR AND UNIFORMLY TENACIOUS ON DEFENSE IT WAS A GAME OF EBB AND FLOW OF ROUGH AND SMOOTH ON BOTH SIDES MICHIGAN SPURTED TO A 2311 FIRSTQUARTER EDGE ONLY TO HAVE NORTH CAROLINA COME BACK TO LEAD 4236 AT THE HALF THE TARHEELS EXTENDED THEIR MARGIN TO SEVEN POINTS 5346 WITH 15 MINUTES LEFT MICHIGAN LED BY FOUR 6763 AT THE 431 MARK NORTH CAROLINA LED BY FIVE 7267 WITH JUST 103 TO GO THEN RAY JACKSON HIT A CORNER JUMP SHOT TO BRING THE WOLVERINES TO WITHIN THREE POINTS AND AFTER TARHEEL BRIAN REESE STEPPED ON A SIDELINE AFTER TAKING AN INBOUNDS PASS WEBBER SOARED TO TIP IN A JALEN ROSE MISS AND MAKE IT A ONEPOINT GAME THE CONTEST MOST OF THE 64000 PEOPLE IN THE HALL AND THE MILLIONS AT HOME HAD HOPED TO SEE THE EXPECTED FOUL ON THE NEXT TARHEEL POSSESSION PUT JUNIOR PAT SULLIVAN A RESERVE FORWARD ON THE FREETHROW LINE WITH 20 SECONDS LEFT HE MADE HIS FIRST SHOT AND MISSED HIS SECOND WEBBER GOT THE REBOUND DRIBBLED PAST MIDCOURT AND CALLED TIMEOUT IN FRONT OF HIS OWN BENCH BUT THAT'S AGAINST THE RULES WHEN A TEAM HAS ALREADY USED ALL ITS TIMEOUTS AS MICHIGAN HAD 35 SECONDS EARLIER SO WILLIAMS GOT TO SHOOT HIS CLINCHING FREE THROWS MOST OF THE POSTGAME TALK CENTERED ON THE WHYS OF WEBBER'S BLUNDER BUT NO CLEAR ANSWER EMERGED STEVE FISHER THE MICHIGAN COACH NOTED HE'D TALKED ABOUT THE TEAM'S TIMEOUT SITUATION DURING THE PREVIOUS STOPPAGE BUT SAID IN THE HEAT OF THE MOMENT THINGS HAPPEN AND WEBBER MIGHT HAVE HEARD SOMEONE ON HIS BENCH CALLING FOR A TIMEOUT WEBBER SAID HE HEARD NO SUCH CRIES AND REMEMBERED NO DISCUSSION OF TIMEOUTS MAYBE I WASN'T SPECIFIC ENOUGH FISHER ALLOWED IT SOUNDED LIKE THE MICHIGAN BENCH WAS CALLING TIMEOUT' TIMEOUT' OFFERED NORTH CAROLINA'S GEORGE LYNCH WHO WAS GUARDING WEBBER AT THE TIME HISTORIANS NO DOUBT WILL PONDER THE MATTER FOR YEARS TO COME BUT FOR NOW WE MUST CONTENT OURSELVES WITH IRONY THERE WAS WEBBER PERHAPS THE FREEST SPIRIT AMONG MICHIGAN'S FREESPIRITED FAB FIVE SOPHS VAINLY SEEKING COACHLY GUIDANCE IN HIS TEAM'S MOMENT OF GREATEST NEED IN TRUTH THE BAGGYSHORTED FAB FIVE'S DEVILMAYCARE READ THAT UNDISCIPLINED REP IS AS POORLY BASED AS THE ONE THAT SMITH'S CAROLINIANS ARE ROBOTS WHO ACT ONLY AS HIS SYSTEM COMMANDS THE TEAMS ON DISPLAY MONDAY WERE FAR MORE SIMILAR THAN DIFFERENT AND WITH A TWIST OF FATE OR TWO COULD HAVE BEEN USING SOME OF ONE ANOTHER'S PLAYERS FOR INSTANCE ERIC MONTROSS THE TARHEELS' 7FOOT CENTER IS THE SON AND GRANDSON OF FORMER MICHIGAN PLAYERS AND CAME WITHIN A WHIT OF ATTENDING THAT SCHOOL ON MONDAY THE CONTESTANTS' BIGGEST GUNS JUST ABOUT CANCELED EACH OTHER OUT MICHIGAN'S FRONTCOURT TANDEM OF WEBBER 23 POINTS 11 REBOUNDS AND HOWARD 7 AND 7 BALANCED NORTH CAROLINA'S MONTROSS 16 AND 5 AND LYNCH 12 AND 10 ROSE THE 6FOOT8 MICHIGAN BALL HANDLER OUTSCORED DERRICK PHELPS HIS TARHEEL COUNTERPART BUT PHELPS HAD FEWER TURNOVERS AND MORE STEALS THE CAROLINA EDGE WAS IN THE SHOOTING OF THE 6FOOT3 WILLIAMS A SHYAPPEARING SOPHOMORE WITH A SILKY TOUCH SINKING FIVE OF SEVEN SHOTS FROM THREEPOINT RANGE HE LED ALL SCORERS WITH 25 POINTS 12 OF WHICH CAME IN THE GAME'S LAST 7 1/2 MINUTES HE ALSO HAD 25 POINTS AGAINST KANSAS IN HIS TEAM'S SEMIFINALROUND WIN AND POSTED 20 22 AND 17 POINTS IN ITS PREVIOUS THREE TOURNAMENT GAMES WILLIAMS'S OTHER DISTINCTIONS THIS SEASON INCLUDED THE FACT HE WAS HIS TEAM'S SHORTEST PLAYER AND THE ONLY NATIVE NORTH CAROLINIAN WHO SAW APPRECIABLE ACTION ON A COSMOPOLITAN SQUAD THAT INCLUDED THREE NEW YORKERS AND A GERMAN NOT TO WORRY THOUGH IT'S OK I FIT RIGHT IN HE SAID IN A SUNDAY INTERVIEW THE BOYS APPRECIATE TALENT I GUESS 9304070131 930407 OTC FOCUS PRICES ARE PUSHED LOWER BY WEAKNESS IN MEDICAL FIELD DISAPPOINTING NEWS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WEAKNESS IN THE MEDICALRELATED SECTOR AND SOME DISAPPOINTING INDIVIDUAL COMPANY NEWS SHOVED OVERTHECOUNTER MARKET PRICES LOWER IN FAIRLY QUIET TRADING EVERY SINGLE INDEX WAS DOWN AND I JUST SEE A LACK OF BIDS SAID WILLIAM HANEMAN SENIOR VICE PRESIDENT OF OVERTHECOUNTER TRADING AT LEGG MASON WOOD WALKER PEOPLE JUST AREN'T INTERESTED ALSO BECAUSE OF THE HOLIDAYS TRADING WAS LIGHT WITH THE NASDAQ NATIONAL MARKET SYSTEM VOLUME TOTALING JUST 188582300 SHARES COMPARED WITH AN EVEN MORE MEAGER 162635300 SHARES A DAY EARLIER OBSERVERS SAID MANY INVESTORS ALSO ARE PLAYING A WAITING GAME IN ANTICIPATION OF TOMORROW'S READING ON MARCH PRODUCER PRICES AND FRIDAY'S REPORT ON CONSUMER PRICES FOR THE MONTH MARKET PLAYERS ARE SAID TO BE PESSIMISTIC ABOUT THESE ECONOMIC FIGURES ALTHOUGH THE HEALTHCARE GROUP LED YESTERDAY'S DECLINE MARKET WATCHERS WERE QUICK TO NOTE THAT TRADING IN OTHER SECTORS WAS GENERALLY MIXED HOWEVER ISSUES THAT ROSE POSTED ONLY SMALL GAINS WHILE STOCKS THAT DECLINED WERE WALLOPED TRADERS HAD DIFFICULTY EXPLAINING THE SLIDE IN MEDICALRELATED STOCKS EXCEPT TO NOTE THAT THE GROUP CONTINUES TO REACT TO UNCERTAINTY OVER PRESIDENT CLINTON'S PLANNED REFORMS A REPORT ISSUED YESTERDAY BY THE BOARDS OF TRUSTEES OF THE SOCIAL SECURITY AND MEDICARE TRUST FUNDS SAID THAT THE MEDICARE TRUST FUND MIGHT GO BROKE AS EARLY AS 1998 THE TRUSTEES SUGGESTED THAT CONGRESS ADDRESS THE FUND'S PROBLEMS BY CONTROLLING MEDICAL COSTS THROUGH A COMPREHENSIVE HEALTHCAREREFORM PACKAGE TONY CECIN DIRECTOR OF EQUITY TRADING AT PIPER JAFFRAY SAID ANY THOUGHT OF PRICE CONTROLS SENDS ALL THOSE STOCKS INTO A TIZZY MR CECIN ADDED THAT CONCERNS OVER FIRSTQUARTER EARNINGS REPORTS ALSO PLAGUE INVESTORS PEOPLE ARE JUST HEDGING THEIR BETS ON WHETHER THE ECONOMY IS STALLING AND WHAT THAT MEANS FOR '93 NUMBERS HE SAID LEGG MASON'S MR HANEMAN AGREED AND SAID MANY INVESTORS ARE WAITING FOR EARNINGS FIGURES AND IF THERE ARE ANY SURPRISES WATCH OUT POOR EARNINGS ESTIMATES ANNOUNCED BY COMPANIES SUCH AS POLICY MANAGEMENT SYSTEMS CAN PARALYZE MARKET PLAYERS THE BIG BOARDLISTED COMPANY TOOK A 36 1/4POINT DIVE YESTERDAY TO CLOSE AT 47 5/8 AFTER IT ANNOUNCED THAT FIRSTQUARTER EARNINGS WERE FAR BELOW EXPECTATIONS THE HEALTHCARE GROUP CAME UNDER FURTHER PRESSURE WHEN US SURGICAL SKIDDED 4 TO 48 5/8 ON CONCERNS ABOUT THE THREAT TO THE COMPANY'S SALES GROWTH AND PROFIT MARGINS FROM MORE CONSERVATIVE SPENDING PRACTICES BY PHYSICIANS AND ITS MOVE TO A NETWORK OF DISTRIBUTORS HAMBRECHT & QUIST DOWNGRADED THE BIG BOARDLISTED COMPANY'S SHARES TO HOLD FROM BUY AND CUT ITS 1993 EARNINGS ESTIMATE LOSERS AMONG MEDICALRELATED ISSUES INCLUDED MEDCO CONTAINMENT WHICH DROPPED 3 TO 27 1/2 CHIRON WHICH SANK 1 1/2 TO 44 1/4 AND SOMATOGEN WHICH SAGGED 1 TO 11 3/4 CAERE PLUMMETED 5 TO 8 1/2 ON A DISAPPOINTING FIRSTQUARTER EARNINGS REPORT THE LOS GATOS CALIF SOFTWARE COMPANY POSTED FIRSTQUARTER NET INCOME OF TWO CENTS A SHARE DOWN FROM 14 CENTS A SHARE THE YEAR EARLIER BROOKTREE OF SAN DIEGO JUMPED 1 3/4 TO 13 1/4 THE COMPANY SAID AFTER MONDAY'S CLOSE THAT IT HAD SETTLED ALL LITIGATION WITH BIG BOARDLISTED ADVANCED MICRO DEVICES UNDER THE PACT BROOKTREE WILL RECEIVE 268 MILLION FROM AN EARLIER AWARD OF DAMAGES FOR PATENT INFRINGEMENT BROOKTREE A SEMICONDUCTOR COMPANY ALSO REPORTED THAT FISCAL SECONDQUARTER NET INCOME FELL TO 18 CENTS A SHARE FROM 24 CENTS A YEAR EARLIER ON THE BIG BOARD ADVANCED MICRO CLIMBED 1 1/4 TO 23 1/2 ON A STRONG EARNINGS REPORT APPLE COMPUTER OF CUPERTINO CALIF FELL 1 1/4 TO 48 3/4 ORACLE WHICH DROPPED 3/4 TO CLOSE AT 34 5/8 UNVEILED ITS ORACLE 7 COOPERATIVE SERVER DATABASE FOR THE APPLE WORKGROUP SERVER 95 RUNNING A/UX APPLE'S UNIX OPERATING SYSTEM ALSO YESTERDAY 14 CLIENT/SERVER TOOLS VENDORS AGREED TO SUPPORT APPLE'S APPLESCRIPT DEVELOPMENT TOOLKIT IN FUTURE VERSIONS OF THEIR DEVELOPMENT SOFTWARE MICROSOFT OF REDMOND WASH SLIPPED 1 3/4 TO 89 3/4 THE COMPANY UNVEILED ITS MULTIMEDIA PACK FOR WINDOWS ITS MICROSOFT MAIL VERSION 32 FOR PERSONAL COMPUTER NETWORKS AS WELL AS THE HP LASER JET 4SI AND LASERJET 4SI MX PRINTERS WITH BIG BOARDTRADED HEWLETTPACKARD HEWLETT PACKARD EASED 1/8 TO 72 3/4 CINTAS CORP SAGGED 2 TO 29 LEHMAN BROTHERS DOWNGRADED THE SHARES OF THE CINCINNATIBASED UNIFORMS MAKER TO NEUTRAL FROM OUTPERFORM STEWART & STEVENSON FELL 1 TO 36 1/8 PRUDENTIAL CUT ITS INVESTMENT RATING ON THE HOUSTONBASED TURBINEDRIVEN GENERATOR FIRM TO HOLD FROM BUY ONE PRICE CLOTHING TUMBLED 2 1/4 TO 11 3/4 AFTER THE DUNCAN SC COMPANY SAID IT EXPECTS TO REPORT A FISCAL FIRSTQUARTER LOSS OF 21 CENTS TO 26 CENTS A SHARE THE RETAIL CHAIN OPERATOR ALSO SAID THAT SAMESTORE SALES FOR THE QUARTER DECLINED 16 FROM A YEAR EARLIER TOPPING THE MOSTACTIVE LIST WAS TELECOMMUNICATIONS WHICH LOST 1/2 TO 17 5/8 THE WALL STREET JOURNAL HAD REPORTED THAT THE ENGLEWOOD COLO COMPANY IS DISCUSSING A PLAN WITH TIME WARNER TO DIVIDE THE PRIMARY ASSETS OF TURNER BROADCASTING BETWEEN THE TWO MEDIA GIANTS WHICH COULD BREAK UP TED TURNER'S ENTERTAINMENT AND NEWS EMPIRE ON THE BIG BOARD TIME WARNER ROSE 3/8 TO 31 ON THE INITIALPUBLICOFFERING FRONT AN OFFERING OF 25 MILLION SHARES OF DAVID SYSTEMS WAS POSTPONED INDEFINITELY BECAUSE OF A SLOW NEWISSUES MARKET ACCORDING TO LEAD UNDERWRITER MONTGOMERY SECURITIES THE SUNNYVALE CALIF DEVELOPER OF NETWORKMANAGEMENT SOFTWARE HAD PLANNED TO OFFER ITS SHARES AT A RANGE OF 7 TO 850 9304070130 930407 INSIDE TRACK AMERICAN ECOLOGY OFFICIALS WERE SELLERS AS SHARES SAGGED AMID A PROJECT DELAY BY ALEXANDRA PEERS AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK INSIDERS ARE SELLING AT AMERICAN ECOLOGY CORP A RADIOACTIVEWASTEDISPOSAL COMPANY WHOSE PLANS TO BUILD A DISPOSAL SITE IN CALIFORNIA ARE MEETING WITH LEGAL AND LOCAL OPPOSITION FROM DEC 3 THROUGH FEB 26 FIVE EXECUTIVES OR DIRECTORS OF THE HOUSTON COMPANY SOLD A TOTAL OF 62769 SHARES OF THE COMPANY'S STOCK INSIDER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW MOST OF THOSE SALES OCCURRED AT PRICES ABOVE THE STOCK'S CURRENT LEVEL THREE OF THE INSIDERS SOLD ALL OF THEIR STOCK IN THE COMPANY ACCORDING TO SEC FILINGS CLIFF WRIGHT CHIEF FINANCIAL OFFICER OF AMERICAN ECOLOGY SAID OF THE INSIDER SELLING WE DIDN'T VIEW IT AS SIGNIFICANT HE ADDED WE HAD A GREAT 1992 WITH EARNINGS UP 19 OVER THE PREVIOUS YEAR MOREOVER HE SAID THE FIRM'S RECENT ACQUISITION OF WASTE PROCESSING INDUSTRIES INC A HOUSTON HAZARDOUSWASTE TRANSPORTATION CONCERN WILL PROVIDE SYNERGY THAT WILL HELP THE COMPANY'S BOTTOM LINE THIS YEAR AND PARTICULARLY IN 1994 SHARES OF AMERICAN ECOLOGY WHICH UNTIL 1991 WAS MAJORITY OWNED BY BROWNINGFERRIS INDUSTRIES INC HAVE BEEN SLIDING IN THE PAST SEVERAL MONTHS ON UNCERTAINTY OVER THE COMPANY'S PLANS TO CONSTRUCT A HAZARDOUSWASTE SITE IN WARD VALLEY CALIF ON JAN 20 A FEDERAL JUDGE EXTENDED A TEMPORARY RESTRAINING ORDER BLOCKING TRANSFER OF THE WARD VALLEY SITE TO THE STATE OF CALIFORNIA WHICH IN TURN PLANNED TO TRANSFER IT TO AMERICAN ECOLOGY THE STOCK CLOSED YESTERDAY ON THE OVERTHECOUNTER MARKET AT 1150 UP 25 CENTS BUT DOWN FROM THE 1516 RANGE OF SIX MONTHS AGO THE INSIDERS' SHARES FETCHED 1081 TO 15 AMERICAN ECOLOGY INSIDERS HAVE BEEN SELLING AT SUCCESSIVELY LOWER PRICES DURING THE PAST YEAR AND WHEN INSIDERS CONTINUE TO SELL AS THE STOCK DROPS ITS A RED LIGHT SAID ROBERT GABELE PRESIDENT OF INVEST/NET WHICH TRACKS AND ANALYZES SEC INSIDER FILINGS IT TELLS US THEY'RE NOT WAITING FOR A BOUNCE AND THE STOCK WAS TRULY OVERVALUED AT THE HIGHER LEVELS AMERICAN ECOLOGY'S PRESIDENT R LEE ARMBRUSTER SOLD 7500 SHARES AND RETAINS 114225 SHARES SEC FILINGS SHOW MR ARMBRUSTER IS SLATED TO RETIRE MAY 6 HE WILL CONTINUE TO SERVE AS A CONSULTANT AND A BOARD MEMBER MR ARMBRUSTER DECLINED TO COMMENT BUT MR WRIGHT SAID THE PRESIDENT SOLD FOR PERSONAL INVESTMENT SANDERS MORRIS MUNDY INC A HOUSTONBASED MARKET MAKER IN AMERICAN ECOLOGY STOCK CUT ITS RATING TO NEUTRAL FROM BUY JAN 20 AND REMOVED THE STOCK FROM ITS RECOMMENDED LIST CITING DELAYS OF THE WADE VALLEY PROJECT CHILLING OUT TWO INSIDERS AT A LEADING SNOWMOBILE MAKER TRIMMED THEIR HOLDINGS OF THE COMPANY'S STOCK NEAR THE PEAK OF ITS 52WEEK PRICE RANGE WILLIAM G NESS CHAIRMAN OF ARCTCO INC SOLD 15000 SHARES OR 17 OF HIS HOLDINGS BETWEEN FEB 22 AND MARCH 5 AT AN AVERAGE PRICE OF 2331 EACH ACCORDING TO SEC FILINGS RAYMOND DYKEMA A DIRECTOR SOLD 50000 SHARES OR 16 OF HIS HOLDINGS ON FEB 12 AT 2225 EACH SEC FILINGS SHOW NEITHER OFFICIAL WAS AVAILABLE FOR COMMENT TIMOTHY C DELMORE CHIEF FINANCIAL OFFICER OF THE THIEF RIVER FALLS MINN COMPANY DIDN'T RETURN PHONE CALLS FOLLOWING THE INSIDERS' SALES THE PRICE OF ARCTCO'S STOCK EDGED UP IN OVERTHECOUNTER TRADING TO A HIGH FOR THE YEAR OF 2675 ON MARCH 25 IT CLOSED YESTERDAY AT 23375 UP 375 CENTS ITS 52WEEK LOW SET LAST MAY WAS JUST OVER 12 ON MARCH 19 THE COMPANY ANNOUNCED A 3FOR2 STOCK SPLIT EFFECTIVE APRIL 27 ARCTCO WHICH SELLS ARCTIC CAT SNOWMOBILES HAS AN ESTIMATED 25 MARKET SHARE THE COMPANY ONE OF FOUR SNOWMOBILE MANUFACTURERS IN THE WORLD HAS GROWN FROM AROUND 25 MILLION IN ANNUAL SALES SINCE FISCAL 1985 TO NEARLY 150 MILLION IN FISCAL 1992 ENDED MARCH 31 FRANK ROLFES AN ANALYST WHO TRACKS THE STOCK FOR DAIN BOSWORTH INC IN MINNEAPOLIS SAID HIS PROGNOSIS FOR THE COMPANY IS BULLISH HE EXPECTS FULLYEAR EARNINGS TO COME IN AT 137 A SHARE FOR FISCAL 1993 AGAINST 104 A SHARE A YEAR EARLIER 9304070127 930407 INTERNATIONAL CHILE'S UNEMPLOYMENT FALLS SANTIAGO CHILE UNEMPLOYMENT FELL TO 43 IN CHILE IN THE DECEMBERFEBRUARY PERIOD FROM 48 DURING THE PREVIOUS THREEMONTH PERIOD AND FROM 52 IN THE YEAREARLIER SPAN THE GOVERNMENT'S NATIONAL STATISTICS INSTITUTE REPORTED PUBLIC UTILITIES TRANSPORTATION COMMUNICATIONS COMMERCE AND FINANCIAL SERVICES WERE THE ECONOMY'S BUSIEST JOBCREATING SECTORS ACCORDING TO THE INSTITUTE EMPLOYMENT IN MINING AND AGRICULTURE FELL IN THE LATEST PERIOD BY 48 AND 19 RESPECTIVELY THE INSTITUTE SAID 9304070126 930407 CREDIT MARKETS BOND PRICES RISE ON REPORT THAT TREASURY STUDY WILL URGE CHANGE IN US BORROWING PATTERNS BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A PRIVATELY PRODUCED REPORT SAYING THAT A TREASURY DEPARTMENT STUDY WILL RECOMMEND A SHIFT IN THE WAY THE GOVERNMENT BORROWS MONEY HELPED TO BOOST BOND PRICES YESTERDAY THE REPORT PRODUCED BY STONE & MCCARTHY RESEARCH ASSOCIATES OF PRINCETON NJ AN ECONOMIC ANALYSIS FIRM SAYS THAT THE TREASURY INTERNAL STUDY WILL RECOMMEND THE REDUCTION OR ELIMINATION OF THE SALE OF CERTAIN LONGTERM TREASURY SECURITIES IN FAVOR OF ISSUING MORE SHORTTERM TREASURY BILLS SPECULATION ABOUT A REDUCTION IN THE SUPPLY OF THE BENCHMARK 30YEAR TREASURY BOND HELPED BOOST ITS PRICE MORE THAN 3/4 POINT OR MORE THAN 750 FOR A BOND WITH A 1000 FACE VALUE TO 101 31/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE DROPPED TO 696 FROM 702 ON MONDAY MOST OTHER TREASURY SECURITIES POSTED MODERATE GAINS WITH THE 10YEAR NOTE RISING MORE THAN 1/4 POINT TO 101 8/32 TO YIELD 607 DOWN FROM 611 HOWEVER THE COUPONEQUIVALENT YIELDS FOR TREASURY BILLS MOVED HIGHER WITH THE THREEMONTH BILL RISING TO 296 FROM 294 ON MONDAY AS ITS DISCOUNT RATE ROSE TO 292 FROM 290 ALSO CONTRIBUTING TO THE SHARP RISE IN THE PRICE OF THE 30YEAR BOND WAS THE UNWINDING OF SOCALLED STEEPENING YIELD CURVE TRADES SAID TRADERS LATE LAST WEEK A NUMBER OF BOND TRADERS WERE BETTING THAT THE INTEREST RATE GAP BETWEEN LONGTERM AND SHORTTERM RATES WOULD WIDEN FURTHER THUS PRODUCING WHAT IS KNOWN AS A STEEPER YIELD CURVE THE GAP BETWEEN THE INTEREST RATES ON THE TWOYEAR NOTE AND 30YEAR BOND HAD WIDENED TO 311 PERCENTAGE POINTS FRIDAY THE LARGEST SPREAD IN OVER A MONTH BUT YESTERDAY A NUMBER OF TRADERS BEGAN TO WORRY THAT THE INTEREST RATE GAP WOULD NOW BEGIN TO NARROW SO THEY BEGAN TO UNWIND THEIR POSITIONS FAVORING A WIDENING INTEREST RATE GAP OR TAKE ON POSITIONS FAVORING A NARROWING INTEREST RATE GAP BY BUYING LONGERTERM SECURITIES SUCH AS THE 30YEAR BOND AND SELLING SHORTERTERM SECURITIES SUCH AS TREASURY BILLS YESTERDAY THE INTEREST RATE GAP BETWEEN TWOYEAR NOTES AND 30YEAR BONDS NARROWED 006 PERCENTAGE POINT TO 305 PERCENTAGE POINT BUT THE REPORT FROM STONE & MCCARTHY WAS THE TALK OF THE MARKET YESTERDAY THE ANALYTICAL GROUP CITING UNNAMED SOURCES IN WASHINGTON SAID THAT AN INTERNAL DEBT MANAGEMENT STUDY CURRENTLY BEING CONDUCTED BY TREASURY WOULD RECOMMEND FOR STRICTLY POLITICAL REASONS A 50 REDUCTION IN THE SIZE OF THE BOND OFFERING THE ELIMINATION OF THE SEVENYEAR NOTE AND A 20 CUT IN THE SIZE OF THE MONTHLY FIVEYEAR NOTE THOSE REDUCTIONS WOULD THEN BE OFFSET BY DOLLARFORDOLLAR INCREASES IN THE AMOUNT OF BILLS AUCTIONED ACCORDING TO THE REPORT THE BUDGET RESOLUTION RUSHED THROUGH CONGRESS IMBEDS A CUMULATIVE 164 BILLION COST SAVINGS FROM CHANGES IN DEBT FINANCING WARD MCCARTHY A MANAGING DIRECTOR AT STONE & MCCARTHY STRESSED THAT THE REPORT SAID THE TREASURY STUDY GROUP WOULD SIMPLY BE MAKING A RECOMMENDATION THERE IS A BIG DIFFERENCE BETWEEN WHAT THEY MIGHT RECOMMEND AND WHAT THEY MIGHT END UP DOING HE SAID AFTER ALL THIS ADMINISTRATION FLOATS TRIAL BALLOONS QUITE OFTEN HOWEVER IF THE STUDY GROUP WERE TO MAKE SUCH A RECOMMENDATION IT WOULD HAVE A SIGNIFICANT ANNOUNCEMENT EFFECT MR MCCARTHY SAID ACCORDING TO STONE & MCCARTHY THE CHANGES IN THE BORROWING MIX THAT THE TREASURY GROUP WILL RECOMMEND ARE THE ONES USED BY THE SENATE BUDGET COMMITTEE AS PART OF AN EFFORT TO COME UP WITH THE NEEDED SAVINGS ON INTEREST COSTS THAT PRESIDENT CLINTON INCLUDED IN HIS ECONOMIC PLAN THE TREASURY DEPARTMENT ANNOUNCED IN FEBRUARY THAT IT WOULD BE UNDERTAKING A REVIEW OF THE WAY IT ISSUES GOVERNMENT SECURITIES A TREASURY SPOKESWOMAN CONFIRMED THAT THE FINDINGS OF THE STUDY WILL BE MADE PUBLIC BEFORE THE ANNOUNCEMENT OF THE NEXT QUARTERLY REFUNDING WHICH IS SLATED FOR MAY 5 WHILE REFUSING TO SPECULATE ON WHAT THE RESULTS OF THE STUDY WILL BE THE SPOKESWOMAN SAID THE GROUP WAS LOOKING AT THE WHOLE ISSUE OF TREASURY FINANCING HOWEVER SHE NOTED THAT TREASURY SECRETARY LLOYD BENSTEN HAS SAID REPEATEDLY THAT HE DID NOT EXPECT ANY RADICAL CHANGES IN THE BORROWING MIX MARKET REACTION TO THE STONE & MCCARTHY REPORT YESTERDAY WAS STRONG IT'S ONE OF THOSE DEALS WHERE MARKET PSYCHOLOGY HAD GOTTEN SO NEGATIVE THAT THE REPORT CAUGHT A LOT OF PEOPLE LEANING THE WRONG WAY HE SAID TRADERS SAID THE MARKET MAY HAVE OVERDONE A SELLOFF THIS PAST FRIDAY WHEN PRICES PLUNGED IN REACTION TO A DISAPPOINTING MARCH EMPLOYMENT REPORT SO WHEN NO FOLLOWTHROUGH SELLING MATERIALIZED THIS WEEK TREASURYS ENDED UP REVERSING DIRECTION AND BEGINNING TO RISE MOST OF THE PEOPLE THAT HAD SELLING TO DO DID THE SELLING LAST WEEK SAID DANIEL CALLAHAN A MANAGING DIRECTOR AT PAINEWEBBER INC THE LAST TWO DAYS HAVE BEEN A CORRECTION ALSO GIVING THE MARKET ROOM TO RALLY YESTERDAY WERE DECLINES IN COMMODITY PRICES WHICH HELPED EASE SOME OF THE MARKET'S RECENT CONCERNS ABOUT A REVIVAL OF INFLATION THE WIDELY WATCHED COMMODITY RESEARCH BUREAU'S INDEX OF 21 COMMODITIES ENDED DOWN 147 POINTS AT 21147 WHILE THE DROP IN THE CRB INDEX WAS SEEN AS ENCOURAGING THE MARKET MUST STILL CONTEND WITH GOVERNMENT STATISTICS ON INFLATION AT THE END OF THE WEEK INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN MEANWHILE YESTERDAY THE TREASURY BILL SECTOR WAS HIT BY A FLOOD OF SUPPLY AFTER THE SENATE PASSED AN INCREASE IN THE AMOUNT OF DEBT THAT THE TREASURY DEPARTMENT IS ALLOWED TO HAVE OUTSTANDING THE TREASURY HAD BEEN FORCED TO POSTPONE A 1425 BILLION ONEYEAR BILL AUCTION LAST WEEK AND A 224 BILLION AUCTION OF THREEMONTH AND SIXMONTH BILLS MONDAY BECAUSE IT HAD RUN OUT OF ROOM TO ISSUE MORE SECURITIES WITH THE DEBT LIMIT HAVING BEEN INCREASED LATE MONDAY NIGHT FROM 4145 TRILLION TO 437 TRILLION THE TREASURY WAS FREE TO SELL THE YEAR BILLS AS WELL AS 17 BILLION OF 15DAY CASH MANAGEMENT BILLS YESTERDAY THE THREEMONTH AND SIXMONTH BILLS ARE SLATED TO BE AUCTIONED TODAY RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED APRIL 8 AND MATURE APRIL 7 1994 WASTE MANAGEMENT INC AND VIRGINIA ELECTRIC & POWER CO WERE AMONG THE HANDFUL OF COMPANIES OFFERING NEW DEBT PAPER YESTERDAY AS INTEREST RATES DECLINED VIRGINIA ELECTRIC IS A UNIT OF DOMINION RESOURCES INC ONE OF YESTERDAY'S MOST INTERESTING OFFERINGS CAME FROM BOEING CO WHICH PRICED AN UNUSUAL 175 MILLION ISSUE OF 50YEAR BONDS THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF ONE PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND WITH A 7875 COUPON TO YIELD 7987 THE ISSUE SIZE WAS INCREASED FROM 150 MILLION RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH SALOMON BROTHERS INC DESPITE MOODY'S RECENT DOWNGRADE TO SINGLEA1 FROM DOUBLEA3 AND CONCERNS OVER CONTINUED DEFERRALS OF BOEING AIRCRAFT ORDERS BY FAR EAST AIRLINES INVESTORS PREDICTED THE DEAL WOULD EASILY FIND BUYERS PARTICULARLY AMONG PENSION FUNDS AND INSURANCE COMPANIES WITH LONGERTERM LIABILITIES THAN MUTUAL FUNDS SOME NOTED THAT YESTERDAY'S OFFERING WAS ATTRACTIVE COMPARED WITH OUTSTANDING BOEING PAPER BOEING'S 875 DEBENTURES MATURING IN 2021 WERE TRADING ABOUT 085 PERCENTAGE POINT ABOVE TREASURYS YESTERDAY WHILE THE COMPANY'S 8625 DEBENTURES MATURING IN 2031 WERE TRADING 090 PERCENTAGE POINT ABOVE TREASURYS SECONDARY INVESTMENTGRADE ISSUES GAINED 1/8 POINT TO 5/8 POINT YESTERDAY WHILE JUNK BONDS FELL 1/8 POINT IN THIN VOLUME TRADERS SAID MEANWHILE THE BOND INVESTORS ASSOCIATION OF MIAMI LAKES FLA REPORTED THAT DEFAULT RATES FOR BOTH CORPORATE AND MUNICIPAL BONDS WERE UNUSUALLY LOW IN THE FIRST QUARTER ACCORDING TO THE STUDY ONE CORPORATE ISSUER DEFAULTED IN THE FIRST QUARTER ON 107 MILLION OF DEBT COMPARED WITH 12 ISSUERS IN THE FIRST QUARTER OF 1992 ON 41 BILLION OF DEBT AND 41 ISSUERS IN THE FIRST QUARTER OF 1991 ON 126 BILLION OF DEBT DESPITE THESE DECLINES THE REPORT CONTINUES THE CONTINUATION OF THE TREND TOWARD LOWER DEFAULT RATES IS UNLIKELY DUE TO THE GROWING ISSUANCE OF JUNK BONDS INCLUDING MANY WITH QUESTIONABLE PROSPECTS WHEN ONE SEES COMPANIES ISSUING DOUBLEDIGIT COUPON BONDS IN ORDER TO REDUCE SINGLE DIGIT RATE BANK LOANS THERE IS REASON FOR CONCERN COMMENTS RICHARD LEHMANN PRESIDENT OF THE ASSOCIATION IN THE REPORT PRICES OF MUNICIPAL BONDS WERE BOOSTED BY THE STRONGEST BUYING SEEN IN NEARLY THREE WEEKS AND THEY FINISHED YESTERDAY'S ACTIVE DEALINGS AS MUCH AS 3/4 POINT FIRMER THE DAY'S BIG GAINERS INCLUDED THE UTAH INTERMOUNTAIN POWER AGENCY'S 550 POWER SUPPLY REVENUE REFUNDING BONDS OF 2020 THEY FINISHED 3/4 HIGHER AT 93 1/4 TO YIELD 597 IN BRISK NEWISSUE ACTIVITY YESTERDAY THE NEW YORK STATE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S 88 MILLION OF BENEFICIAL INTEREST CERTIFICATES WERE BROUGHT TO THE MARKET BY A SYNDICATE LED BY ARTEMIS CAPITAL GROUP INC FOLLOWING A REPRICING AT WHICH MOST YIELDS WERE CUT 005 TO 010 PERCENTAGE POINT DUE TO STRONG DEMAND YIELDS FOR THE NONCALLABLE CERTIFICATES RANGE FROM 250 IN 1994 TO 540 IN 2005 THE INITIAL SCALE OF YIELDS WAS 260 IN 1994 TO 545 IN 2005 THE SECURITIES ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP PROCEEDS FROM THE SALE OF THE CERTIFICATES WILL BE USED TO FINANCE THE LEASE PURCHASE OF AS MANY AS 384 BUSES BY NEW YORK STATE'S METROPOLITAN TRANSPORTATION AUTHORITY HOWEVER THE CERTIFICATES WILL BE PAID OFF BY THE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S GENERAL TOLL REVENUES THE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY IS AN AFFILIATE OF THE MTA AND STATE LAW REQUIRES THAT ANY ANNUAL SURPLUS FUNDS OF THE AUTHORITY BE GIVEN TO THE MTA MORE THAN 225 BILLION IN NEW AUTOLOAN SECURITIES ENLIVENED THE ASSETBACKED SECURITIES MARKET YESTERDAY MEANWHILE AFTER A QUIET SESSION OF MORTGAGEBACKED TRADING CURRENT COUPON PASSTHROUGHS ROSE SLIGHTLY LATE IN THE DAY AMONG 7 MORTGAGE SECURITIES FOR APRIL DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 5/32 HIGHER AT 100 8/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES FINISHED 6/32 FIRMER AT 100 19/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 6/32 HIGHER AT 100 13/32 CHRYSLER CORP PRICED 15 BILLION IN AUTOLOAN CERTIFICATES THROUGH SEVERAL CLASSES EACH DESIGNED TO TARGET SPECIFIC GROUPS OF INVESTORS AND CHASE MANHATTAN CORP BEGAN SELLING A 750 MILLION ISSUE OF SECURITIES BACKED BY LOANS MOSTLY MADE TO PURCHASE LUXURY CARS THE CHASE AUTO LOAN DEAL THE BANK'S LARGEST TO DATE IS EXPECTED TO BE PRICED TODAY IN A TRADITIONAL PASSTHROUGH TRUST STRUCTURE USING STRUCTURING TECHNIQUES COMMON IN THE MORTGAGE MARKET AND NOW BECOMING COMMON TO AUTO ASSETBACKED ISSUERS CHRYSLER'S CHRYSLER CREDIT CORP UNIT OFFERED ITS HUGE VOLUME OF SECURITIES IN FOUR CLASSES CHRYSLER IS ABLE TO CREATE SHORT AND LONGERMATURITY CLASSES BY CARVING UP THE PRINCIPAL AND INTEREST CASH FLOWS OF THE AUTO LOANS BACKING THE DEAL TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9304070125 930407 BONTON SALES ROSE FOR PERIOD YORK PA BONTON STORES INC SAID SALES FOR THE FIVE WEEKS ENDED APRIL 3 GREW 52 TO 27 MILLION BUT COMPARABLESTORE SALES FOR THE PERIOD FELL 59 REFLECTING HARSH WINTER WEATHER BONTON WHICH OPERATES 36 DEPARTMENT STORES THAT SELL CLOTHING AND HOME FURNISHINGS SAID SALES FOR THE FISCAL YEAR'S FIRST NINE WEEKS ENDED APRIL 3 ROSE 69 TO 428 MILLION FROM 40 MILLION A YEAR AGO COMPARABLESTORE SALES DECLINED 46 9304070124 930407 WHO'S NEWS MORGAN STANLEY PUTS PAY CUT' BACK INTO WALL STREET LINGO SENIOR OFFICIALS GET 20 LESS FOR YEAR BUT AT 63 MILLION APIECE IT'S NOT TOO AWFUL BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORGAN STANLEY GROUP INC'S SENIOR EXECUTIVES ARE UTTERING TWO WORDS RARELY HEARD THESE DAYS ON WALL STREET PAY CUT IN A PRELIMINARY PROXY STATEMENT FILED WITH REGULATORS MORGAN STANLEY SAID ITS CHAIRMAN RICHARD B FISHER PRESIDENT ROBERT F GREENHILL AND CHIEF OPERATING OFFICER JOHN J MACK EACH RECEIVED PAY PACKAGES OF 63 MILLION IN SALARY CASH BONUS AND RESTRICTED MORGAN STANLEY STOCK FOR THE FIRM'S LATEST FISCAL YEAR WHICH ENDED JAN 31 THE PAYOUTS ARE NOTHING TO SNEEZE AT BUT THEY REPRESENT A 20 PAY CUT FROM WHAT THE THREE MORGAN STANLEY EXECUTIVES EARNED THE YEAR BEFORE THE SLIMMER PAYCHECKS ARE PARTICULARLY UNUSUAL BECAUSE MORGAN STANLEY HAD RECORD PROFIT OF 5105 MILLION FOR THE PAST FISCAL YEAR YOU DON'T SEE IT VERY OFTEN GUY MOSZKOWSKI AN ANALYST AT SANFORD C BERNSTEIN & CO SAID OF THE PAY CUTS BUT IT JUST SHOWS THAT MORGAN IS VERY MUCH FOCUSED ON SHAREHOLDER RETURNS MORGAN STANLEY DECLINED TO COMMENT BUT THE PRELIMINARY PROXY SAYS THE PAY CUTS STEMMED FROM DECLINING RETURN FOR MORGAN STANLEY SHAREHOLDERS BECAUSE THE COMPANY'S EQUITY CAPITAL GREW FASTER THAN EARNINGS DURING THE LATEST FISCAL YEAR THE COMPANY'S RETURN ON STOCKHOLDERS' EQUITY DECLINED FROM 214 THE YEAR BEFORE TO 176 ACCORDING TO THE COMPENSATION COMMITTEE REPORT IN THE PROXY OF COURSE CARING ABOUT SHAREHOLDERS MAKES GOOD FINANCIAL SENSE MORGAN STANLEY EMPLOYEES OWN MORE THAN ONETHIRD OF THE STOCK INDEED MESSRS FISHER AND GREENHILL EACH OWN MORE THAN TWO MILLION SHARES OF MORGAN STANLEY STOCK IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE MORGAN STANLEY SHARES WERE QUOTED AT 60875 DOWN 1125 MORGAN STANLEY'S PARING OF EXECUTIVE PAY COMES AS MANY WALL STREET EXECUTIVES REVEL IN THE FACT THAT THEIR COMPENSATION PACKAGES ARE MOVING IN THE OTHER DIRECTION AMID RECORD EARNINGS AT THE NATION'S SECURITIES FIRMS FOR INSTANCE THE 1992 CASH PAY OF SENIOR EXECUTIVES AT MERRILL LYNCH & CO ROSE BY AS MUCH AS 36 FROM 1991 THE FIVE SENIOR OFFICERS AT PAINEWEBBER GROUP INC RECEIVED AN AVERAGE 30 JUMP IN 1992 CASH BONUSES MESSRS FISHER GREENHILL AND MACK ALSO HOLD OPTIONS ON MORGAN STANLEY STOCK WITH A CURRENT VALUE OF 75 MILLION 75 MILLION AND 86 MILLION RESPECTIVELY THE PROXY SHOWS AS REPORTED MR MACK WILL SUCCEED MR GREENHILL AS MORGAN STANLEY PRESIDENT ON JUNE 10 MR GREENHILL WILL BECOME SENIOR ADVISER TO THE FIRM ON INVESTMENTBANKING MATTERS 9304070123 930407 APPLIED IMMUNE SCIENCES FILING SANTA CLARA CALIF APPLIED IMMUNE SCIENCES INC SAID IT FILED AN APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR CLEARANCE TO MARKET A DEVICE THAT ISOLATES AND REMOVES CERTAIN POTENTIALLY HARMFUL CELLS FROM THE BONE MARROW THE COMPANY WHICH IS DEVELOPING IMMUNE SYSTEM THERAPIES FOR CANCER AND AIDS SAID ITS AIS CELLECTOR DEVICE REMOVES CERTAIN BLOOD CELLS CALLED TCELLS FROM DONOR BONE MARROW BEFORE INFUSING IT INTO A CANCER PATIENT IN CLINICAL TRIALS THE COMPANY SAID SUCH TREATMENT HAS SHOWN THE POTENTIAL TO PREVENT SOCALLED GRAFT VS HOST DISEASE IN WHICH THE DONOR'S MARROW ATTACKS THE HOST'S TISSUE 9304070122 930407 MURPHY OIL ACQUISITION EL DORADO ARK MURPHY OIL CORP SAID IT COMPLETED ITS ACQUISITION OF LASMO NORTH SEA PLC'S 852 INTEREST IN A BLOCK IN THE UK NORTH SEA FOR 100 MILLION LASMO'S SHARE OF PROVED RESERVES IN T BLOCK ARE ESTIMATED AT 132 MILLION BARRELS OF OIL AND 112 BILLION CUBIC FEET OF NATURAL GAS PRODUCTION IS EXPECTED FROM THE FIRST OF FOUR FIELDS IN THE BLOCK AROUND MIDYEAR MURPHY SAID 9304070121 930407 ACME STEEL PRICE BOOST RIVERDALE ILL ACME STEEL CO SAID IT WILL RAISE THE TRANSACTION PRICE OF ITS HOTROLLED AND COLDROLLED SHEET AND STRIP METAL PRODUCTS BY 20 A TON EFFECTIVE JULY 5 UNLIKE THE BASE PRICE THE TRANSACTION PRICE TAKES INTO ACCOUNT SPECIAL SALES TERMS ACME'S INCREASE WHICH AVERAGES JUST UNDER 5 FOLLOWS SIMILAR MOVES LAST MONTH BY OTHER MAJOR STEELMAKERS 9304070120 930407 STEWART & STEVENSON TO BUY FIRM HOUSTON STEWART & STEVENSON SERVICES INC SAID IT AGREED IN PRINCIPLE TO ACQUIRE A CLOSELY HELD OILFIELD EQUIPMENT SUPPLIER FOR ABOUT 10 MILLION STEWART & STEVENSON SAID IT SIGNED AN AGREEMENT WITH QUALITY OILFIELD PRODUCTS INC ALSO OF HOUSTON QUALITY OILFIELD IS AN INTERNATIONAL SUPPLIER OF BLOWOUT PREVENTION EQUIPMENT HIGH PRESSURE GATE VALVES AND WELLHEADS AND TESTING EQUIPMENT STEWART & STEVENSON'S PRESIDENT BOB O'NEAL CALLED THE PROPOSED ACQUISITION A NATURAL EXTENSION OF THE COMPANY'S EXISTING PRODUCT LINE IN ADDITION TO OILFIELD EQUIPMENT STEWART & STEVENSON ALSO MAKES PRODUCTS USED IN THE MARINE AVIATION POWER GENERATION AND DEFENSE INDUSTRIES 9304070119 930407 IBM LAUNCHES BID FOR FRENCH FIRM CGI INFORMATIQUE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON INTERNATIONAL BUSINESS MACHINES CORP LAUNCHED A FRIENDLY OFFER OF 252 BILLION FRENCH FRANCS 4656 MILLION FOR ONE OF FRANCE'S BIGGEST COMPUTERSOFTWARE AND SERVICES COMPANIES THE BID FOR CGI INFORMATIQUE SA WAS GREETED BY EUROPEAN INDUSTRY ANALYSTS AS A BOLD MOVE BY IBM TO SPEED ITS EXPANSION INTO THE PROFITABLE SOFTWARE AND SERVICES BUSINESS AND TO REDUCE ITS DEPENDENCE ON FALLING COMPUTERHARDWARE SALES CGI WHOSE SPECIALTIES INCLUDE SELLING SOFTWARE TO HELP WRITE MORE SOFTWARE SOCALLED DEVELOPMENT TOOLS HAS LONG BEEN AMONG THE FASTESTGROWING AND MOSTPROFITABLE PLAYERS IN THE FRENCH MARKET BUT FOR ALL ITS SIZE AND STRATEGIC SIGNIFICANCE THE BID PROVIDES FEW NEW CLUES TO IBM'S POSSIBLE DIRECTION UNDER ITS RECENTLY APPOINTED CHIEF EXECUTIVE LOUIS V GERSTNER JR MR GERSTNER ATTENDED THE MARCH 30 IBM BOARD MEETING AT WHICH THE CGI BID WAS APPROVED AND HE SUPPORTED THE BOARD'S DECISION ACCORDING TO CLAUDE ANDREUZZA PRESIDENT OF THE FRENCH SUBSIDIARY'S MANAGEMENT BOARD HOWEVER MR ANDREUZZA SAID IN AN INTERVIEW THAT THE BID HAD BEEN IN THE WORKS FOR SOME TIME BEFORE MR GERSTNER'S ARRIVAL AT IBM IN ARMONK NY WHATEVER MR GERSTNER'S PLANS INDUSTRY ANALYSTS SAY THEY PROBABLY INCLUDE CONTINUING IBM'S PUSH INTO THE GLOBAL SOFTWARE AND SERVICES BUSINESS THAT'S BECAUSE THE SECTOR WHICH LAST YEAR REPRESENTED 42 OF THE 155 BILLION EUROPEAN COMPUTER MARKET HAS FOR THE PAST FIVE YEARS BEEN ONE OF THE FEW RELIABLY PROFITABLE PIECES OF THE INDUSTRY IT'S ALSO AMONG THE FASTERGROWING WITH SOFTWARE INDUSTRY REVENUES FORECAST TO RISE 92 THIS YEAR IN EUROPE AND SERVICES 74 ACCORDING TO EUROBIT THE EUROPEAN COMPUTER INDUSTRY TRADE ASSOCIATION BY CONTRAST HARDWARE SALES FELL LAST YEAR BY 23 AND MAY BARELY RISE THIS YEAR THOUGH IT FORMERLY LAGGED COMPETITORS IBM FOR THE PAST FEW YEARS HAS BEEN PUSHING HARD INTO THE HIGHERGROWTH SECTOR LAST YEAR IT GOT 17 OF ITS WORLDWIDE REVENUES FROM SOFTWARE AND 12 FROM SERVICES THE STRATEGY OF IBM ON THE GLOBAL SCALE IS TO DEVELOP IN THE MARKET FOR SERVICES AND SOFTWARE SAID PIERRE AUDOUIN A COMPUTERINDUSTRY CONSULTANT AT PIERRE AUDOUIN CONSEIL IN PARIS MR ANDREUZZA OF IBM'S FRENCH UNIT SAID THE CGI ACQUISITION WOULD GIVE IBM FAST ACCESS TO SOME MUCHNEEDED PRODUCTS AND EXPERTISE AMONG OTHER THINGS IN SOFTWAREDEVELOPMENT PROGRAMS AND IN SOME SPECIALIZED SOFTWARE PACKAGES FOR PAYROLL ACCOUNTING AND OTHER BUSINESS FUNCTIONS 9304070118 930407 FINANCING BUSINESS OFFICELAND INC OFFICELAND INC TORONTO SAID IT WILL ASK HOLDERS TO APPROVE AT ITS ANNUAL MEETING APRIL 23 A 1FOR10 SHARE CONSOLIDATION TO COMPLY WITH A US1 MINIMUM BID REQUIREMENT FOR STOCKS LISTED ON NASDAQ THE OFFICE EQUIPMENT MARKETER SAID ITS BOARD APPROVED THE EXCHANGE OF US454900 IN DEBT FOR 9098000 COMMON SHARES OFFICELAND STOCK CLOSED AT 21875 CENTS DOWN 625 CENTS IN OVERTHECOUNTER TRADING YESTERDAY 9304070117 930407 TO GET OUT OF THIS PLACE ALIVE COMB YOUR HAIR AND DON'T BITE BY SHARON MASSEY STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO ANIMAL SHELTERS ARE USUALLY THE TAIL END OF EXISTENCE FOR MOST HOMELESS PETS BUT ABANDONED FIDOS AND FIFIS HERE CAN WIN A NEW LEASE ON LIFE IF THEY MEND THEIR WAYS AT A SHELTER RUN BY THE SAN FRANCISCO SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ANIMALWELFARE WORKERS ARE GIVING CRASH COURSES TO TURN BEASTLY BEASTS INTO POLITE PETS THE UNKEMPT CRITTERS ALSO UNDERGO LAVISH BEAUTY TREATMENTS AIMED AT MAKING THEM MORE ADOPTABLE MOST PEOPLE MAKE A JUDGMENT WITHIN 10 SECONDS ABOUT WHETHER OR NOT TO ADOPT A PARTICULAR ANIMAL SAYS BOB GUTIERREZ AN ANIMAL BEHAVIORIST WHO WORKS FULLTIME AT THE SPCA SHELTER TEACHING SOCIAL GRACES TO WOEBEGONE DOGS AND CATS SO FIRST IMPRESSIONS ARE VERY IMPORTANT THE SHELTER OFFERS A STATEACCREDITED 12WEEK FINISHINGSCHOOL COURSE IN WHICH STUDENT ANIMAL GROOMERS BRUSH AND COMB THEIR WAY TO DIPLOMAS THAT CAN HELP THEM GET JOBS AS PET BEAUTICIANS IN THE PROCESS THEIR FURRY FRIENDS TAKE ON A NEW MORE BECOMING LOOK THAT GIVES THEM A MUCH BETTER CHANCE OF AVOIDING THE DARKER FATE USUALLY METED OUT AT SHELTERS TO HELP PREVENT PETS FROM BEING ANTISOCIAL TO BEGIN WITH THE SHELTER'S VOLUNTEERS ALSO WORK A CRISIS HOT LINE FOR EXASPERATED PET OWNERS OFFERING ADVICE ON SUCH PROBLEMS AS HOUSEBREAKING LAST YEAR THE SPCA SHELTER PLACED MORE THAN 4500 HOMELESS ANIMALS AND EUTHANIZED JUST 19 BY CONTRAST THE AMERICAN HUMANE ASSOCIATION IN DENVER ESTIMATES THAT ONLY 25 OF THE ROUGHLY 17 MILLION ANIMALS TAKEN IN BY SHELTERS ACROSS THE US ARE ADOPTED AN SPCA SPOKESWOMAN SAYS THE SHELTER EXPECTS THE COURSES TO HELP PLACE EVERY SINGLE ONE OF ITS ANIMALS IN A LOVING NEW HOME LAST YEAR FEWER THAN 8 OF ITS ADOPTED PETS WERE RETURNED CRITTER CHARM SCHOOL DOESN'T END WITH ADOPTION NEW OWNERS ARE REQUIRED TO TAKE THEIR ADOPTED PETS TO OBEDIENCE CLASSES WHERE IT IS HOPED BOTH WILL BENEFIT FROM A DOSE OF DISCIPLINE WHAT TRAINING METHODS ARE BEST I'M A STRONG BELIEVER IN WHATEVER WORKS IF FOOD WORKS AS A MOTIVATOR WE USE IT IT'S A CATCHALL TO GET THEM TO MIND SAYS MR GUITERREZ HE GRINS AND FEEDS A TIDBIT TO ALEX HIS NEWLY ADOPTED YEAROLD BOXER SIT HE ORDERS AND SEVERAL VOLUNTEERS LAUGH AS THE YOUNGSTER SLOWLY OBEYS THAT'S BETTER THAN YESTERDAY 9304070116 930407 FOREST OIL SETS PURCHASE DENVER FOREST OIL CORP SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE ATLANTIC RICHFIELD CO'S INTERESTS IN CERTAIN OFFSHORE LEASES OR BLOCKS FOR 40 MILLION ARCO'S SHARE OF THE PRODUCTION IN 17 PRODUCING WELLS IN THE GULF OF MEXICO IS ABOUT 68 MILLION CUBIC FEET OF NATURAL GAS AND 1200 BARRELS OF OIL 9304070114 930407 WHO'S NEWS PS GROUP INC PS GROUP INC SAN DIEGO DONALD W KILLIAN JR 63 YEARS OLD AN ATTORNEY WAS ELECTED A DIRECTOR SUCCEEDING PAUL C BARKLEY 63 WHO DIED PS GROUP IS A HOLDING COMPANY WITH INTERESTS IN TRAVEL MANAGEMENT FUEL SALES AND DISTRIBUTION AIRCRAFT LEASING OIL AND GAS AND METALLICWASTE RECYCLING 9304070113 930407 WESTERN GERMAN FIRMS' ORDERS BONN NEW ORDERS TO WESTERN GERMANY'S MANUFACTURING INDUSTRY FELL 22 IN FEBRUARY FROM JANUARY AND WERE OFF 136 FROM A YEAR EARLIER THE BONN ECONOMICS MINISTRY SAID IN ADDITION JANUARY DATA WERE REVISED TO A DROP OF 57 FROM DECEMBER FROM THE PRELIMINARY REPORT OF A DECLINE OF 55 THE FIGURES ARE PRICE AND SEASONALLY ADJUSTED THE SLOWING GERMAN ECONOMY DRAGGED DOWN THE FEBRUARY DATA WITH THE MINISTRY REPORTING THAT DOMESTIC ORDERS FELL 39 IN FEBRUARY FROM JANUARY WHILE FOREIGN ORDERS CLIMBED 15 9304070112 930407 DELTA AIR LINES TRAFFIC ATLANTA DELTA AIR LINES SAID ITS MARCH TRAFFIC INCREASED 57 TO 676 BILLION REVENUE PASSENGER MILES FROM 639 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE DELTA'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS 629 COMPARED WITH 593 LAST YEAR 9304070111 930407 WHO'S NEWS US BIOSCIENCE INC US BIOSCIENCE INC WEST CONSHOHOCKEN PA R ALAN BIRTCHET 42 YEARS OLD WAS NAMED TO THE NEW POST OF VICE PRESIDENT OF SALES OF THIS BIOPHARMACEUTICAL COMPANY HE WAS SENIOR DIRECTOR OF US SALES AT CENTOCOR INC ANOTHER BIOPHARMACEUTICAL CONCERN US BIOSCIENCE SPECIALIZES IN THE DEVELOPMENT OF PRODUCTS FOR TREATING CANCER AND ALLIED DISEASES 9304070110 930407 FINANCING BUSINESS INTERNATIONAL BUSINESS MACHINES CORP INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY FILED FOR A SHELF OFFERING OF AS MUCH AS 265 BILLION OF DEBT SECURITIES PREFERRED STOCK AND DEPOSITARY SHARES IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPUTER COMPANY SAID THE SHELF REGISTRATION ADDS TO PREVIOUSLY REGISTERED SECURITIES TO BRING THE TOTAL SHELF OFFERING TO 3 BILLION IBM SAID IT EXPECTS TO USE THE PROCEEDS FOR GENERAL CORPORATE PURPOSES NO UNDERWRITERS WERE NAMED IN THE FILING 9304070109 930407 USX'S MARATHON GETS LICENSES HOUSTON MARATHON OIL CO SAID IT WAS AWARDED TWO PRODUCTION LICENSES FOR NEARLY 340000 ACRES IN THE UNITED KINGDOM CONTINENTAL SHELF WATERS THE LICENSES COVER SEVEN BLOCKS ON THE WESTERN EDGE OF CARDIGAN BAY AND ON ST GEORGE'S CHANNEL BETWEEN WALES AND IRELAND LICENSE ONE COMPRISES BLOCKS 102/10 103/1 103/6 AND 106/27 IN THE CHANNEL LICENSE TWO INCLUDES BLOCKS 106/18 106/19 AND 106/23 IN THE BAY THE LICENSES ARE OWNED BY MARATHON OIL UK LTD 60 SANTOS EUROPE LTD 20 ORANGENASSAU PETROLEUM SEARCH BV 10 AND SEAGULL UK LTD 10 MARATHON BASED IN HOUSTON IS THE OIL UNIT OF USX CORP BASED IN PITTSBURGH 9304070108 930407 INTERNATIONAL MARUBENIIRAN DEBT PACT TOKYO JAPANESE GENERAL TRADING COMPANY MARUBENI CORP SAID IT AGREED WITH IRAN'S CENTRAL BANK TO RESCHEDULE SEVERAL HUNDRED MILLION DOLLARS IN DEBT OWED BY IRAN TO THE COMPANY THE DEBT TO BE RESCHEDULED REPRESENTS MOST OF IRAN'S DEBT TO MARUBENI A MARUBENI OFFICIAL SAID REPAYMENT WILL BE DELAYED BY ABOUT A YEAR UNDER THE AGREEMENT WHICH WAS REACHED IN MARCH MARUBENI'S MOVE WAS MADE INDEPENDENTLY OF OTHER JAPANESE TRADING COMPANIES THE SPOKESMAN SAID HE DECLINED TO BE MORE SPECIFIC ABOUT THE AMOUNT OF DEBT TO BE RESCHEDULED OR TO SPECULATE ABOUT PLANS AT OTHER TRADING COMPANIES IRAN AGGRESSIVELY IMPORTED MANY TYPES OF GOODS AFTER THE END OF THE IRANIRAQ WAR BUT HAS HAD TROUBLE PAYING FOR THEM AMID SLUGGISHNESS IN PETROLEUM PRICES 9304070107 930407 PRICE CUT RAISES CHANCE OF BOOST IN TOBACCO TAX MARLBORO STRATEGY IS LIKELY TO UNDERCUT WARNINGS OF HARM TO INDUSTRY BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP MORRIS COS'S RISKY PRICECUTTING STRATEGY FOR MARLBORO IS LIKELY TO BOOST THE PROSPECTS OF A SIZABLE INCREASE IN FEDERAL TOBACCO TAXES WITH THE CLINTON ADMINISTRATION LIKELY TO PUSH FOR AN INCREASE IN CIGARETTE TAXES THE 40CENTSAPACK REDUCTION BY THE NATION'S NO 1 TOBACCO COMPANY COULD UNDERCUT INDUSTRY ARGUMENTS THAT A TAX INCREASE WOULD HURT RETAILERS ELIMINATE JOBS AND DISCRIMINATE AGAINST LOWINCOME SMOKERS SOME TOBACCO EXECUTIVES FEAR THE 40CENT MOVE MIGHT COME TO REPRESENT AN OPENING BID FOR THE SIZE OF A TAX INCREASE A CLINTON ADMINISTRATION OFFICIAL INDICATED TOBACCO EXECUTIVES MAY HAVE REASON TO BE CONCERNED OBVIOUSLY THIS MOVE MAKES IT EASIER TO RAISE CIGARETTE TAXES BECAUSE IT WON'T HAVE AS GREAT AN IMPACT ON THE CONSUMER THE OFFICIAL SAID THE ADMINISTRATION SHOULD TAKE WHATEVER THEY WERE THINKING ABOUT BEFORE AND ADD 40 CENTS TO GET BACK TO THE STARTING LINE CONTENDED RICHARD DAYNARD HEAD OF THE TOBACCO PRODUCTS LIABILITY PROJECT AN ANTISMOKING GROUP EVEN TOBACCO ALLIES CONCURRED THAT THEIR EFFORT TO BLOCK A TAX JUST GOT MORE DIFFICULT IT HAS TO MAKE OUR JOB HARDER SAID TERRI RICHMAN A LOBBYIST AT THE NATIONAL ASSOCIATION OF CONVENIENCE STORES CONVENIENCE STORES SOLD ABOUT 10 BILLION WORTH OF CIGARETTES LAST YEAR AND THE RETAILERS HAVE JOINED FORCES WITH THE TOBACCO INDUSTRY IN FIGHTING A TAX INCREASE THE TIMING OF THE PHILIP MORRIS MOVE MOREOVER BAFFLED PHILIP MORRIS'S FRIENDS AND FOES ALIKE HILLARY RODHAM CLINTON'S HEALTHCARE TASK FORCE IS NOW WORKING ON DETAILED PLANS FOR RESTRUCTURING THE NATION'S HEALTHCARE SYSTEM AN EXECUTIVE AT A RIVAL TOBACCO COMPANY SAID THAT PHILIP MORRIS'S PLANS UNDERCUT THE ARGUMENT THAT A TAX INCREASE WOULD COST THE TOBACCO INDUSTRY AND RETAILERS JOBS THANKS A LOT THE EXECUTIVE SAID PRIVATELY NOW THEY HAVE BASICALLY ESTABLISHED A FLOOR PEOPLE DON'T UNDERSTAND WHY THEY DID IT PHILIP MORRIS SURPRISED THE INDUSTRY LAST WEEK BY ANNOUNCING PLANS TO TEMPORARILY CUT THE PRICE OF ITS NO 1 MARLBORO BRAND BY UP TO 40 CENTS A PACK IN RESPONSE TO A STEADY LOSS OF BUSINESS TO DISCOUNT CIGARETTES IT ALSO SAID IT WOULD FORGO PRICE INCREASES ON ITS OTHER MAJOR BRANDS FOR THE FORESEEABLE FUTURE THE REDUCTIONS ARE EXPECTED TO TRIGGER A PRICE WAR THROUGHOUT THE 44 BILLION A YEAR CIGARETTE MARKET AND THAT WOULD ESSENTIALLY LET THE FEDERAL GOVERNMENT TACK ON AN ADDITIONAL 40CENT TAX WITHOUT ANY RESULTING NET RISE IN THE CURRENT PRICE PER PACK I COULD SEE A CONGRESSMAN MAKING THE ARGUMENT THAT THE MARKET WILL NOW BEAR A HIGHER PRICE ON CIGARETTES SAID MS RICHMAN OF THE CONVENIENCE STORE GROUP SHE ADDED HOWEVER THAT SHE IS STILL CONFIDENT THAT SHE CAN PERSUADE LAWMAKERS THAT ANY INCREASES IN TOBACCO TAXES WOULD BE HARMFUL TO THE ECONOMY AND BE UNFAIR TO POOR PEOPLE WHO MAKE UP A DISPROPORTIONATE PERCENTAGE OF SMOKERS RESPONDING TO THE PRICE CUTS REP MICHAEL A ANDREWS D TEXAS ISSUED A STATEMENT SAYING THAT PHILIP MORRIS'S MOVE WILL ONLY STRENGTHEN SUPPORT FOR INCREASING THE CIGARETTE EXCISE TAX EVEN FOR AS MUCH AS 2 PER PACK REP ANDREWS ALREADY HAS INTRODUCED A BILL PROPOSING THAT FEDERAL CIGARETTE TAXES BE RAISED TO AS HIGH AS A DOLLAR A PACK FROM THE CURRENT LEVEL OF 24 CENTS A PACK PHILIP MORRIS SAID THE TIMING OF THE ANNOUNCEMENT HAD NOTHING TO DO WITH THE TAX FIGHT LAST WEEK THE HEAD OF PHILIP MORRIS'S US TOBACCO UNIT WILLIAM I CAMPBELL BRUSHED OFF INVESTOR CONCERNS ABOUT THE IMPACT OF HIGHER TAXES HE SAID THE COMPANY WAS CONFIDENT THAT THE FEDERAL EXCISE TAX WILL BE A MANAGEABLE ISSUE WE ARE DOING OUR BEST TO KEEP ANY INCREASE AT LOW LEVELS OR NONE AT ALL HE SAID IN AN INTERVIEW ON SUNDAY MEANWHILE RETAILERS SAID THE PHILIP MORRIS SALES FORCE WAS SCRAMBLING TO PROVIDE DETAILS OF THE MARLBORO PRICE CUT NED MEARA GROCERY MERCHANDISING MANAGER FOR GRAND UNION CO A 250STORE CHAIN OF SUPERMARKETS BASED IN WAYNE NJ SAID HE WAS TOLD THE FIRST ROUND OF CUTS WOULD BEGIN LATE NEXT MONTH PRICES WOULD BE REDUCED BY 50 CENTS A PACK IN NEW YORK AND MASSACHUSETTS BECAUSE OF HIGH STATE TAXES MR MEARA SAID HE SAID THE FLURRY OF MEDIA ATTENTION SURROUNDING THE PRICES CUTS WAS CONFUSING SOME SMOKERS ALREADY HE SAID THE CUSTOMERS ARE IN OUR STORES LOOKING FOR CHEAPER MARLBOROS RICK WARTZMAN IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9304070106 930407 S&P RATINGS ON VENEZUELA DEBT NEW YORK STANDARD & POOR'S CORP SAID IT AFFIRMED ITS DOUBLEB RATING ON VENEZUELA'S EUROBONDS BUT REVISED THE RATINGS OUTLOOK TO NEGATIVE FROM STABLE ABOUT 900 MILLION OF FOREIGN CURRENCYDENOMINATED DEBT IS AFFECTED THE RATINGS SERVICE SAID S&P DOESN'T RATE THE VENEZUELAN GOVERNMENT'S 199 BILLION OF BRADY BONDS ISSUED AS PART OF THE COUNTRY'S 1990 AGREEMENT WITH ITS COMMERCIAL BANK LENDERS OR ITS LOCAL CURRENCYDENOMINATED DEBT THE NEGATIVE OUTLOOK REFLECTS THE INCREASING POLITICAL DIFFICULTIES FACED BY THE GOVERNMENT OF PRESIDENT CARLOS ANDRES PEREZ 9304070105 930407 TECHNOLOGY US TO WORK WITH SEMATECH ON NEW COMPUTER CHIPS WASHINGTON THE ENERGY DEPARTMENT PLANS TO ANNOUNCE TODAY A FIVEYEAR 103 MILLION AGREEMENT WITH THE SEMICONDUCTOR CONSORTIUM SEMATECH TO DEVELOP EQUIPMENT FOR PRODUCING THE NEXT GENERATION OF COMPUTER CHIPS THE DEPARTMENT'S SANDIA NATIONAL LABORATORIES NEAR ALBUQUERQUE NM WILL CONTRIBUTE THE MATERIALS DATABASE AND THE EXPERTISE IN ADVANCED SYSTEMS DESIGN NEEDED TO IMPROVE PERFORMANCE AND RELIABILITY SEMATECH WHICH REPRESENTS 75 OF THE SEMICONDUCTOR INDUSTRY WILL PROVIDE MANUFACTURING EXPERTISE THE VALUE OF EACH SIDE'S CONTRIBUTION WILL BE ROUGHLY EQUAL OVER THE FIVE YEARS SEMATECH WAS FORMED IN 1987 TO HELP THE US INDUSTRY BECOME MORE COMPETITIVE INTERNATIONALLY 9304070104 930407 INTERNATIONAL UNABLE TO FIGHT THE REFERENDUM CALLED BY HIS RIVALS YELTSIN SETS OUT TO WIN IT BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN WHETHER HE LIKES IT OR NOT IS PREPARING FOR A NATIONWIDE REFERENDUM ORGANIZED BY HIS POLITICAL OPPONENTS ON THEIR TERMS SOME CLOSE AIDES SAY MR YELTSIN HAS DROPPED PLANS FOR HIS OWN PLEBISCITE WHICH HE INSISTED LAST MONTH THAT HE WOULD CALL BUT OTHER AIDES SAY HE HASN'T DECIDED YET THE PRESIDENT HIMSELF HASN'T BROACHED THE MATTER IN PUBLIC FOR DAYS ADDING TO THE CONFUSION A GROUP OF DEMOCRATIC PARTIES ANNOUNCED THEY WILL ORGANIZE A PARALLEL OPINION POLL AT THE SAME TIME AS THE REFERENDUM SUPPORTERS OF MR YELTSIN SAY THAT IN ANY CASE THEY NOW HAVE TO CONCENTRATE THEIR EFFORTS ON THE REFERENDUM CALLED AT THE LAST MEETING OF THE CONGRESS OF PEOPLE'S DEPUTIES THE COUNTRY'S LARGEST PARLIAMENTARY BODY WITH THE REFERENDUM SCHEDULED FOR APRIL 25 THOSE SUPPORTERS SAY THEY ARE RUNNING OUT OF TIME TO PLAN ALTERNATIVE STRATEGIES OR DEBATE THE ISSUE FURTHER EVEN THOUGH THE REFERENDUM'S WORDING AND GROUND RULES WILL MAKE IT DIFFICULT FOR MR YELTSIN TO ACHIEVE A CLEARCUT VICTORY IT'S TOO LATE FOR ARGUING SAYS ANATOLY SHABAD A PARLIAMENTARY DEPUTY WHO BACKS MR YELTSIN AND IS HELPING TO ORGANIZE THE CAMPAIGN MR YELTSIN WAS THE FIRST ONE TO CALL FOR A REFERENDUM BACK IN DECEMBER AS A WAY TO END THE POWER STRUGGLE BETWEEN HIM AND PARLIAMENT BUT AFTER WEEKS OF DEBATE HE NOW FINDS HIMSELF FACING FOUR CRITICAL AND SPECIFIC QUESTIONS THAT PARLIAMENT WANTS TO POSE AND PARLIAMENT HAS DECIDED THAT TO WIN MR YELTSIN MUST GET THE VOTES OF MORE THAN 50 OF THE ENTIRE ELECTORATE NOT JUST A MAJORITY OF THOSE WHO CAST THEIR BALLOTS THE QUESTIONS ARE DO YOU TRUST THE PRESIDENT DO YOU APPROVE OF HIS SOCIAL AND ECONOMIC POLICY IS IT NECESSARY TO HOLD EARLY ELECTIONS FOR PRESIDENT SHOULD THERE BE EARLY ELECTIONS FOR THE PARLIAMENT MR YELTSIN ORIGINALLY WANTED JUST ONE GENERAL QUESTION IN HIS POLL DO YOU SUPPORT THE PRESIDENT IF VOTERS ANSWERED POSITIVELY HE PLANNED TO USE THE MANDATE TO PUSH FOR IMPORTANT CHANGES IN THE RUSSIAN CONSTITUTION THAT WOULD SPELL OUT HIS AUTHORITY AND INCLUDE IMPORTANT FOUNDATIONS FOR HIS ECONOMIC INITIATIVES SUCH AS THE ESTABLISHMENT OF PRIVATE PROPERTY MR SHABAD A SHORT MAN WITH A THICK MOP OF GRAY HAIR SPENDS HIS TIME THESE DAYS MAKING FRANTIC PHONE CALLS TO ORGANIZERS AROUND THE COUNTRY HE SAYS HE DOESN'T RULE OUT THE POSSIBILITY THAT MR YELTSIN MAY DO SOMETHING DRAMATIC IN THE NEXT FEW WEEKS TO SHAKE UP VOTERS AND CALL ATTENTION TO THE REFERENDUM MR SHABAD DIDN'T SAY WHAT THE PRESIDENT MIGHT DO AND HE RULED OUT ANOTHER ATTEMPT BY MR YELTSIN AT INSTITUTING PRESIDENTIAL RULE THE YELTSIN GROUPS HAVE ALSO ASKED WESTERN COUNTRIES TO SUPPLY POLL WATCHERS ELENA BONNER THE WIDOW OF HUMANRIGHTS ADVOCATE AND SCIENTIST ANDRE SAKHAROV IS HEADING UP THE EFFORT SOME GROUPS SUCH AS HELSINKI WATCH HAVE ALREADY RESPONDED MR SHABAD SAID MR YELTSIN KICKED OFF THE REFERENDUM CAMPAIGN BY STOPPING IN THE FAR EAST SIBERIAN CITY OF BRATSK MONDAY NIGHT ON THE WAY BACK FROM THE SUMMIT WITH PRESIDENT CLINTON HE TOLD VOTERS TO VOTE YES ON EVERY QUESTION AND LATER EXPLAINED THAT THIS WOULD BE THE SIMPLEST WAY FOR PEOPLE PARTICULARLY THE ELDERLY TO REMEMBER HOW TO CORRECTLY ANSWER THE MOST IMPORTANT QUESTIONS ON THE BALLOT MR SHABAD SAID DEMOCRATIC GROUPS ORIGINALLY URGED VOTERS TO VOTE NO ON THE QUESTION OF EARLY PRESIDENTIAL ELECTIONS BECAUSE THEY DIDN'T WANT TO APPEAR DISLOYAL TO HIM IN FACT SAYS MR SHABAD MR YELTSIN LOOKS STRONGER BY TELLING PEOPLE THAT HE WILL STAND FOR EARLY ELECTIONS VOTER APATHY IS THE BIGGEST PROBLEM FACING MR YELTSIN HE WILL HAVE TO WIN OVER MORE THAN 50 OF THE COUNTRY'S REGISTERED VOTERS TO WIN A CLEARCUT MANDATE IN HIS 1991 POPULAR PRESIDENTIAL ELECTION WHICH HE WON WITH A LANDSLIDE 60 THE TURNOUT WAS ABOUT 70 BUT NOW VOTERS ARE ASSUMED TO BE TIRED OF ALL THE POLITICAL FIGHTING AND DISPIRITED BY THE DIFFICULTIES OF LIFE UNDER THE YELTSIN ECONOMIC REFORMS MR SHABAD PREDICTED THAT THE REFERENDUM WOULD PRODUCE FAVORABLE RESULTS FOR MR YELTSIN IF IT ISN'T HIGHER THAN 50 OF THE ELECTORATE MR YELTSIN COULD EITHER USE WHATEVER THE PERCENTAGE IS TO SHOW THAT HE DOES HAVE SUPPORT OR HE COULD CLAIM THE RESULTS OF THE REFERENDUM ARE INVALID BECAUSE THE RULES WERE UNCONSTITUTIONAL IF VOTERS APPROVE EARLY ELECTIONS MR YELTSIN WILL HAPPILY ACCEPT AND MOST LIKELY WOULD WIN SAID MR SHABAD BUT PARLIAMENT IS LIKELY TO POSTPONE ELECTIONS INDEFINITELY HE SAID LEAVING THE POWER STRUGGLE UNRESOLVED WE DON'T SEE THIS REFERENDUM AS DECISIVE MR SHABAD SAID 9304070103 930407 INTERNATIONAL FOREIGN MINISTER OF JAPAN RESIGNS CITES POOR HEALTH BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO MICHIO WATANABE A STRONG ADVOCATE OF A JAPANESE MILITARY ROLE IN INTERNATIONAL PEACEKEEPING OPERATIONS RESIGNED AS JAPAN'S FOREIGN MINISTER CITING POOR HEALTH MR WATANABE 69 YEARS OLD IS THE LATEST POLITICAL LEADER TO DROP FROM JAPAN'S RULINGPARTY RANKS IN RECENT MONTHS HIS RESIGNATION FOLLOWS THE FALL AMID SCANDAL OF 78YEAROLD SHIN KANEMARU ONCE JAPAN'S MOST POWERFUL POLITICIAN THE RESIGNATION OF MR WATANABE WHO IS ALSO DEPUTY PRIME MINISTER IS VIEWED HERE AS STRENGTHENING THE POLITICAL POSITION OF PRIME MINISTER KIICHI MIYAZAWA 73 MR MIYAZAWA A FORCEFUL OPPONENT OF EASING JAPAN'S POSTWAR RESTRICTIONS ON MILITARY ACTIVITY OVERSEAS OFTEN SHARPLY DISAGREED WITH MR WATANABE UNTIL MR WATANABE'S RECENT HEALTH PROBLEMS WIDELY REPORTED BUT NEVER OFFICIALLY CONFIRMED AS CANCER HE WAS CONSIDERED LIKELY TO CHALLENGE MR MIYAZAWA FOR THE PARTY LEADERSHIP LATER THIS YEAR MR MIYAZAWA TRIED TO FURTHER BOOST HIS STANCE WITHIN THE LDP YESTERDAY BY OFFERING THE FOREIGN MINISTER'S POST TO TSUTOMU HATA THE HEAD OF A DISSIDENT REFORM FACTION WITHIN THE PARTY BUT MR HATA REFUSED AND THE JOB WILL GO TO KABUN MUTO 66 A FORMER MINISTER OF INTERNATIONAL TRADE AND INDUSTRY MR MUTO WHO HAS PLAYED A KEY ROLE IN THE CONTINUING URUGUAY ROUND OF WORLD TRADE TALKS COMES FROM THE SAME LDP FACTION AS MR WATANABE LIKE MR WATANABE MR MUTO HAS BEEN OUTSPOKEN IN COMMENTING ON SENSITIVE INTERNATIONAL AND DOMESTIC ISSUES LAST YEAR HIS COMMENTS CRITICAL OF US AUTO WORKERS AND THEIR MANAGEMENT SPARKED RAGE IN WASHINGTON AND ADDED TO STRAINS IN JAPANESEUS RELATIONS A SALTY POLITICIAN FROM RURAL JAPAN MR WATANABE HAS A REPUTATION FOR MAKING BLUNT OFFCOLOR STATEMENTS OFTEN SENDING AIDES SCURRYING TO CLARIFY OR RETRACT THEM HE GAINED NOTORIETY IN THE US A FEW YEARS AGO FOR DEROGATORY REMARKS ABOUT BLACKS MR WATANABE'S RESIGNATION CAME AS LITTLE SURPRISE HE HAS BEEN IN AND OUT OF THE HOSPITAL FOR MONTHS SOME POLITICIANS HAVE OPENLY CALLED FOR HIS RESIGNATION SAYING HIS INSISTENCE ON HOLDING THE FOREIGN MINISTER'S JOB WAS HARMING JAPAN'S ABILITY TO DRAFT FOREIGN POLICY 9304070102 930407 AMERICAN AIRLINES TRAFFIC RISES FT WORTH TEXAS AMERICAN AIRLINES THE PRINCIPAL UNIT OF AMR CORP SAID ITS MARCH TRAFFIC INCREASED ABOUT 86 THE AIRLINE FLEW 818 BILLION REVENUE PASSENGER MILES COMPARED WITH 753 BILLION LAST MARCH A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED FELL SLIGHTLY TO 604 FROM 618 IN THE FIRST THREE MONTHS AMERICAN SAID TRAFFIC INCREASED 86 TO 227 BILLION MILES FROM 209 BILLION LOAD FACTOR DECREASED TO 58 FROM 583 9304070100 930407 LETTERS TO THE EDITOR WITH HYDROPOWER COSTS TRICKLE UP IT MAY NOT BE FAIR TO PICK OUT FOR COMMENT ONE SENTENCE FROM A LENGTHY AND OTHERWISE ARTICULATE EDITORIALPAGE ARTICLE NONETHELESS I MUST RESPOND TO MY FRIEND AND COLLEAGUE TERENCE L BARNICH CLINTON ENERGY TAX WORSE THAN IT SEEMS EDITORIAL PAGE MARCH 3 WHO OBJECTS TO THE IMPOSITION OF AN ENERGY TAX UPON HYDROELECTRIC POWER CLAIMING THAT THE COST OF RIVER WATER FLOWING THROUGH ELECTRIC TURBINES IS ZERO THE NOTION THAT HYDROPOWER IS ALMOST FREE ALTHOUGH WIDELY HELD IS WRONG FIRST THE EMBEDDED CAPITAL COSTS OF HYDROELECTRIC DAMS AND DIVERSIONS ARE LARGE WHEN COMPARED WITH OTHER FORMS OF GENERATION SECOND THERE IS AN OPPORTUNITY COST OF RUNNING WATER THROUGH A TURBINE INSTEAD OF USING IT FOR OTHER POTENTIALLY MORE SOCIALLY BENEFICIAL PURPOSES FINALLY HYDROELECTRIC FACILITIES MAY CREATE SIGNIFICANT ENVIRONMENTAL COSTS THE FEDERAL SYSTEM OF DAMS AND IMPOUNDMENTS ON THE COLUMBIA RIVER FOR EXAMPLE HAS DESTROYED ONCE ABUNDANT SALMON SPECIES A PROPERLY DESIGNED TAX ON HYDROELECTRIC GENERATION WOULD BE A FAIR TAX IF OTHER FUELS ARE TO BE TAXED THERE SHOULD BE A TAX ON HYDROELECTRIC POWER IN ORDER TO REMOVE THE INCENTIVE THAT WOULD OTHERWISE THEN EXIST TO CONSTRUCT AN INCREASING NUMBER OF ENVIRONMENTALLY DANGEROUS DAMS AND DIVERSIONS IDEALLY THE TAX ON HYDROELECTRIC POWER WOULD GIVE SOME RECOGNITION TO THE EFFICIENCY OF HYDRO WHEN COMPARED WITH THERMAL GENERATION IT MAY SEEM PECULIAR THAT A REGULATOR FROM A STATE THAT IS HEAVILY DEPENDENT ON HYDROGENERATION WOULD FAVOR A TAX ON HYDROELECTRICITY THE GOAL OF ENERGY PRICING POLICIES HOWEVER IS NOT SIMPLY TO PRODUCE THE CHEAPEST RATE AN EQUALLY IMPORTANT GOAL IS TO ALLOW CONSUMERS TO UNDERSTAND THROUGH THE PRICES THEY PAY THE TRUE COST OF THE ENERGY THEY USE THUS INFORMED CONSUMERS WILL WE HOPE MAKE BETTER DECISIONS REGARDING THEIR CONSUMPTION A PROPERLY CONSTRUCTED TAX ON HYDROELECTRICITY WILL CONTRIBUTE TO THIS PRICING GOAL 9304070099 930407 LETTERS TO THE EDITOR US PAYS FOR TOO MANY BLUE HELMETS PAUL VOLCKER'S APPEAL GIVE THE UNITED NATIONS ITS DUES EDITORIAL PAGE MARCH 10 ENCOURAGES THE US TO PAY ITS 240 MILLION IN ARREARS AND GIVE UN PEACEKEEPING THE ENHANCED FINANCIAL BASE IT REQUIRES TO ADDRESS INCESSANT DEMANDS UPON THE WORLD BODY THE US CONGRESS IN 1991 APPROVED REPAYMENT OF ARREARAGES BUT SPREAD OVER A FIVEYEAR FISCAL BASIS CONGRESS'S SLOW PAYOUT IS INTENDED TO PROD THE UN BUREAUCRACY TO IMPLEMENT NEEDED FISCAL DISCIPLINE AND TO ELIMINATE THE RAMPANT WASTE AND FRAUD CITED IN RICHARD THORNBURGH'S RECENT UN CRITIQUE MR VOLCKER NEGLECTED TO STATE THAT THE US CURRENTLY PAYS A WHOPPING 4050 OF UN PEACEKEEPING OPERATIONS FAR MORE THAN ITS 304 ASSESSED AS OPPOSED TO VOLUNTARY COMMITMENT A GENERAL EXPANSION OF UN PEACEKEEPING FUNDING MAY INVOLVE AMERICA IN UNDERWRITING MISSIONS IN PARTS OF THE WORLD WHERE IT HAS NO NATIONAL INTEREST AND LEAD TO AN EVERINCREASING SUBSIDY OF A BLOATED UN BUDGET AS THE EXPERIENCE OF SOMALIA SHOWS US TROOPS INEVITABLY MAY HAVE TO SERVE AS THE MUSCLE OF UN PEACEKEEPING FORCES IN STRIFEPLAGUED NATIONS WHERE THE UN IS UNABLE TO MAINTAIN PEACE THE SOMALI VENTURE COSTING US TAXPAYERS BILLIONS OF DOLLARS APPEARS EVER MORE IMPERILED AS AMERICAN FORCES DOWNSIZE MR VOLCKER DOES NOT QUESTION THE MERIT OF MAINTAINING BLUE HELMETS IN CYPRUS LEBANON KASHMIR OR WESTERN SAHARA OR THE UN'S DUBIOUS RECORD OF COMPETENCE IN PEACEKEEPING IN ANGOLA LAST YEAR THE UN ELECTORAL FRAUD INVESTIGATION PROVED MPLA VOTERIGGING SIGNIFICANTLY DISTORTED BALLOTING RESULTS THE UN LARGELY BECAUSE IT HAD NOT BUDGETED FOR A RUNOFF ELECTION AND DID NOT WANT TO CONFESS TO INADEQUATE MONITORING RULED THE PROCESS GENERALLY FREE AND FAIR UN WHITEWASHING OF ELECTION FRAUD EMBOLDENED THE MPLA DESPITE UN SECURITY GUARANTEES TO ASSASSINATE UNITA NEGOTIATORS DURING TALKS IN THE CAPITAL ABOUT THE PRESIDENTIAL RUNOFF RENEWING THE CIVIL WAR HOPING NOT TO REPEAT THE ANGOLA DEBATE THE UN PLANS TO DISPATCH 10 TIMES AS MANY PEACEKEEPERS TO MOZAMBIQUE IN CAMBODIA WHERE THE US IS CONTRIBUTING 648 MILLION OF A 3 BILLION PROJECTED TOTAL COST THE PEACEKEEPING OPERATION IS NOT LIKELY TO SUCCEED THE UN HAS NOT DISARMED EITHER THE KHMER ROUGE WHO REFUSE TO PARTICIPATE IN ELECTIONS OR THE HUN SEN FORCES SUPPORTED BY THE VIETNAMESE REGIME KHMER ROUGE GUERRILLAS MAINTAIN THE CAPABILITY TO RECONQUER CAMBODIA AND COUPLED WITH THE PHNOM PENH GOVERNMENT'S INTIMIDATION AND HARASSMENT OF OPPOSITION CANDIDATES TO DERAIL MAY ELECTIONS OR DESTABILIZE ANY NEWLY ELECTED GOVERNMENT THE FORD FOUNDATION'S UN STUDY WHICH MR VOLCKER COCHAIRED RECOMMENDS RAIDING AN ALREADY BESIEGED US DEFENSE DEPARTMENT BUDGET TO FUND MORE UN PEACEKEEPERS BEFORE SUCH A RASH MOVE IS CONSIDERED THE US CONGRESS SHOULD EXERCISE ITS OVERSIGHT RESPONSIBILITIES AND UNDERTAKE A COSTBENEFIT ASSESSMENT OF UN ACTIVITIES AND CURRENT PEACEKEEPING OPERATIONS WITH AN EYE TOWARD SETTING PRIORITIES SUNSETTING OUTDATED INTERVENTIONS AND IMPROVING PERFORMANCE 9304070098 930407 LEISURE & ARTS JULIE ANDREWS BACK ON BROADWAY BY MELAINE KIRKPATRICK NEW YORK IT'S BEEN 30 YEARS SINCE JULIE ANDREWS WAS LAST SEEN ON A NEW YORK STAGE AND FANS MIGHT SAY THAT THOSE 30 YEARS HAVE MARKED THE DECLINE OF THE BROADWAY MUSICAL IT WOULD BE HARD TO ARGUE WITH THAT ASSESSMENT IF IT WEREN'T FOR ONE SPLENDID EXCEPTION STEPHEN SONDHEIM THANKS TO MR SONDHEIM THE MODERN MUSICAL HAS NEVER BEEN MORIBUND NEVER AN ANACHRONISM HIS MORDANT WIT AND IDIOSYNCRATIC MELODIES HAVE GIVEN THE MUSICAL A CYNICAL SOME WOULD SAY REALISTIC EDGE SONDHEIM SPEAKS FOR THE 1970S '80S AND '90S IN THE SAME WAY RODGERS AND HAMMERSTEIN AND LERNER AND LOEWE SPOKE FOR THE '40S '50S AND '60S THERE IS POETIC JUSTICE THEN IN THE FACT THAT MS ANDREWS HAS RETURNED TO THE NEW YORK THEATER IN A SONDHEIM SHOW APPEARING IN A SONDHEIM MUSICAL IS THE THEATRICAL EQUIVALENT FOR HER OF BARING HER BOSOM IN THE FILM SOB THAT ALLOWED HER ONCE AND FOR ALL TO CAST OFF HER BUTTONEDUP MARY POPPINS IMAGE NOW SHE IS EMANCIPATING HERSELF FROM HER PORTRAYALS OF PLUCKY ELIZA DOOLITTLE IN MY FAIR LADY AND THE YODELING NUN IN SOUND OF MUSIC BY PLAYING AN URBANE LOVELORN WIFE IN PUTTING IT TOGETHER AT THE MANHATTAN THEATRE CLUB AS PUT TOGETHER BY JULIA MCKENZIE PUTTING IT TOGETHER APPROACHES SWEET PERFECTION IT CONTAINS THE BEST THEATRICAL SONGS OF OUR GENERATION PERFORMED BY OUR MOST ACCOMPLISHED STAGE ENTERTAINERS IN AN ENCHANTING ADAPTATION ON A BEWITCHING SET WHO COULD ASK FOR ANYTHING MORE REALLY SEVEN SONDHEIM MUSICALS IT INCLUDES SONGS FROM A FUNNY THING HAPPENED ON THE WAY TO THE FORUM TO ASSASSINS INCLUDING FOLLIES COMPANY A LITTLE NIGHT MUSIC INTO THE WOODS AND MERRILY WE ROLL ALONG IT FOLLOWS IN THE TRADITION OF SIDE BY SIDE SONDHEIM AND MARRY ME A LITTLE EARLIER ANTHOLOGIES OF HIS WORK THIS IS ITS FIRST US PRODUCTION AFTER ITS PREMIERE LAST YEAR IN ENGLAND THERE ARE 32 SONGS HERE STRUNG TOGETHER BY A THIN BUT STURDY THREAD OF PLOT SET IN A MANHATTAN PENTHOUSE FIVE UNNAMED SOPHISTICATES THREE MEN TWO WOMEN HAVE GATHERED FOR A PARTY IN BETWEEN SIPS OF CHAMPAGNE ACT I AND HEADACHES ACT II THEY TAKE TURNS SINGING ABOUT LOVE IN ITS MANY GLORIOUS AND DISAPPOINTING FORMS ROBIN WAGNER'S STUNNING SET BUILT AROUND A SINUOUS GRAND STAIRCASE ADDS TO THE PRODUCTION'S AIR OF ELEGANCE AN ELEGANCE THAT IS TARNISHED BY THE ACTRESSES' DOWDY COSTUMES THE STAR OF THE SHOW IS ALWAYS THE SONGS WHICH TO MY MIND SOUND BETTER HERE THAN THEY DID IN THEIR ORIGINAL SHOWS MUCH OF THIS IS BECAUSE THE BOOKS TO MR SONDHEIM'S MUSICALS GENERALLY AREN'T AS GOOD AS THE SONGS WHICH LOSE SOME OF THEIR LUSTER WHEN THEY ARE COUCHED IN THESE INFERIOR DRAMATIC VEHICLES A GOOD EXAMPLE IS THE AMUSING GUN SONG FROM ASSASSINS SUNG AS IT IS HERE BY A TIPSY BIMBO RACHEL YORK IT IS FRIVOLOUS AND FUNNY SUNG BY A QUARTET OF PRESIDENTAL ASSASSINS AS IT WAS IN THE FAILED SHOW TWO YEARS AGO IT WAS DISTASTEFUL EVEN THREATENING MR SONDHEIM'S TRADEMARK IS HIS WRY WORLDLYWISE LOVE SONGS AND MS ANDREWS IS GIVEN SEVERAL TO SING HER RENDITION OF THE CHILLING COULD I LEAVE YOU FROM FOLLIES IS A PERFECT BALANCE OF CONFLICTING EMOTIONS WE AREN'T SURE WHETHER IT'S AFFECTION OR CUNNING THAT PERSUADES THE WAVERING WIFE TO STICK BY HER HUSBAND MS ANDREWS'S PERFORMANCE CONFIRMS THAT SHE'S STILL THE FINEST MUSICALTHEATER SINGER AROUND HER VOICE IS REMARKABLY EXPRESSIVE SHE CAN SHIFT EMOTIONS IN A SINGLE BREATH WONDERFUL AS SHE IS HERE HOWEVER HER ENORMOUS VOCAL RANGE IS STILL UNDERUTILIZED AND I LONGED TO HEAR HER LET HER VOICE LOOSE IN A SOARING MELODIOUS SONG OF THE SORT THAT MR SONDHEIM SELDOM WRITES MS ANDREWS IS ALSO THE FINEST MUSICALTHEATER ACTRESS AROUND MORE THAN ANYONE ELSE IN THE CAST SHE CREATES A CHARACTER OUT OF HER THINLY DEFINED ROLE EVEN WHEN SHE'S NOT SINGING SHE STAYS IN CHARACTER BY SUCH GAMBITS AS A SIDELONG GLANCE OR A PURPOSEFUL STRIDE HER TECHNIQUE IS MASTERFUL AS THE CYNICAL WIFE WITH AN EVERHOPEFUL HEART SHE IS SO BELIEVABLE THAT WHEN SHE TAKES HER CURTAIN CALL HER WIDE RADIANT SMILE SEEMS OUT OF PLACE THE REST OF THE CAST WHILE NOT OF MS ANDREWS'S CALIBER IS STILL INSPIRED MICHAEL RUPERT AND MS YORK ARE VETERANS OF MUSICALS ON AND OFF BROADWAY MR RUPERT STARRED LAST SEASON IN FALSETTOS AND MS YORK HAS APPEARED IN LES MISERABLES AND CITY OF ANGELS BOTH HAVE WELLTRAINED AMIABLE VOICES THOUGH MR RUPERT SEEMED TO BE SUFFERING FROM A COLD THE NIGHT I HEARD HIM AND DO NICE JOBS IN THEIR RESPECTIVE ROLES OF ROMANTIC BACHELOR AND DIMWITTED FLOOZY STEPHEN COLLINS IS SIMULTANEOUSLY APPEALING AND SMARMY AS THE HANDSOME GADABOUT HUSBAND WHO ISN'T SURE HOW MUCH HE STILL LOVES HIS WIFE AND A WILDEYED CHRISTOPHER DURANG BETTER KNOWN AS A COMIC PLAYWRIGHT BEYOND THERAPY AND SISTER MARY IGNATIUS IS A HOOT AS A PARTY CRASHER OF AMBIVALENT SEXUALITY AND QUESTIONABLE SANITY ALL THAT SAID PUTTING IT TOGETHER CONTAINS ONE LARGE HIGHLY REGRETTABLE FAULT AND THAT IS THAT ITS LIMITED RUN DUE TO END MAY 29 IS SOLD OUT 9304070097 930407 INSIDER TRADING SPOTLIGHT BASED ON ACTUAL TRANSACTION DATES IN REPORTS RECEIVED THROUGH FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9304070096 930407 MINERALS TECHNOLOGIES' SHARES NEW YORK MINERALS TECHNOLOGIES INC SAID IT COMPLETED A SECONDARY OFFERING OF 755 MILLION COMMON SHARES AND REPURCHASED FROM PFIZER INC ITS REMAINING 25 MILLION SHARES OF MINERALS TECHNOLOGIES A PRODUCER OF SPECIALTY MINERAL MINERALBASED AND SYNTHETIC MINERAL PRODUCTS BEFORE THE TRANSACTIONS PFIZER OWNED ABOUT 40 OF MINERALS TECHNOLOGIES THE SECONDARY OFFERING WAS SOLD AT 25 A SHARE WHILE THE MINERALS COMPANY REPURCHASED THE PFIZER HOLDINGS AT 24 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING MINERALS TECHNOLOGIES WAS DOWN 125 CENTS AT 26125 A SHARE 9304070095 930407 BUSINESS BRIEF CORNING INC SWINGS TO PROFIT BUT RESULTS DISAPPOINT ANALYSTS CORNING NY CORNING INC POSTED FIRSTQUARTER NET INCOME OF 498 MILLION OR 26 CENTS A SHARE UP FROM A YEAREARLIER LOSS OF 221 MILLION OR 152 A SHARE DESPITE THE IMPROVEMENT WHICH RESULTED LARGELY FROM A YEAREARLIER CHARGE FOR AN ACCOUNTING CHANGE THE RESULTS DISAPPOINTED ANALYSTS WHO HAD EXPECTED EARNINGS OF 28 CENTS TO 32 CENTS A SHARE CORNING'S SHARES CLOSED AT 3225 DOWN 125 ON THE NEW YORK STOCK EXCHANGE CORNING WHICH MAKES CERAMICS AND OPTICAL FIBER AND WHICH OPERATES MEDICAL LABORATORIES SAID POOR US WEATHER IN MARCH REDUCED EARNINGS BY DELAYING SHIPMENTS WHILE WEAK ECONOMIES IN JAPAN AND EUROPE DEPRESSED THE EARNINGS OF THE COMPANY'S JOINT VENTURES THE VENTURES ARE GLOBAL COMPANIES AND RIGHT NOW IS NOT A GOOD TIME TO BE A GLOBAL COMPANY SAID HARRY E WELLS AN ANALYST AT ADAMS HARKNESS & HILL IN BOSTON CORNING SAID THAT FOR THE 12 WEEKS ENDED MARCH 28 EARNINGS BEFORE ACCOUNTING CHANGES AND ONETIME EVENTS WERE 472 MILLION OR 25 CENTS A SHARE DOWN 9 FROM 518 MILLION OR 27 CENTS A SHARE IN THE YEAREARLIER FIRST QUARTER SALES FOR CONSOLIDATED SUBSIDIARIES ROSE 10 TO 817 MILLION FROM 742 MILLION LAST YEAR LAST YEAR'S RESULTS ARE RESTATED TO INCLUDE THE EFFECT OF AN ACCOUNTING RULE REQUIRING ACCRUAL OF COSTS RELATING TO HEALTH AND LIFE INSURANCE BENEFITS AND TO INCLUDE THE RESULTS OF CORNING'S UNILAB CORP UNIT AS AN UNCONSOLIDATED SUBSIDIARY 9304070094 930407 NORTH COAST ENERGY STOCK CLEVELAND NORTH COAST ENERGY INC SAID IT FILED APPLICATIONS WITH THE AMERICAN STOCK EXCHANGE AND THE SECURITIES AND EXCHANGE COMMISSION TO LIST ITS COMMON STOCK ON THE NASDAQ SMALL CAP MARKET INSTEAD OF THE AMEX PENDING REGULATORY APPROVAL THE STOCK WOULD BEGIN TRADING ON NASDAQ TOMORROW UNDER THE SYMBOL NCEI NORTH COAST'S PREFERRED STOCK AND WARRANTS ALREADY TRADE ON THE NASDAQ SMALL CAP MARKET UNDER THE SYMBOLS NCEBP AND NCEBW RESPECTIVELY NORTH COAST IS AN OIL AND NATURAL GAS EXPLORATION COMPANY HEADQUARTERED HERE 9304070093 930407 PEPPERAND SALT THAT FAST FOODS SIMPLY AREN'T FOR FASTING WHETHER IT'S WAXING OR WANING 9304070092 930407 LETTERS TO THE EDITOR MAVERICK YOUR MARCH 23 EDITORIAL THE DEMOCRATIC HERD WAS UNFAIR TO SEN HERB KOHL D WIS WHEN IT SAID HE HAS FOR THE FIRST TIME IN FOUR YEARS DISCOVERED A SPENDING BILL HE DOESN'T LIKE IN FACT ACCORDING TO OUR NONPARTISAN 1991 CONGRESSIONAL RATING SEN KOHL HAD THE BEST SCORE IN VOTING AGAINST SPENDING INCREASE PROPOSALS AMONG ALL DEMOCRATS IN THE SENATE AND HAD A BETTER SCORE THAN ALL BUT SIX REPUBLICANS HE IS ALSO A CONSISTENT SUPPORTER OF THE BALANCED BUDGET AMENDMENT YOU ARE CORRECT IN WRITING THAT CONGRESSIONAL DEMOCRATS OFTEN RUN AS A HERD OF TAXANDSPENDERS BUT AS HIS RECORD SHOWS SEN KOHL OFTEN TRIES TO DRIVE THE HERD TOWARD SPENDING RESTRAINT 9304070091 930407 INTERNATIONAL RUBLE WEAKENS TO RECORD OF 712 UNITS TO THE DOLLAR MOSCOW AP THE RUBLE WEAKENED TO A NEW RECORD CLOSING AT 712 RUBLES TO THE DOLLAR IN HEAVY TRADING ON THE MOSCOW INTERBANK CURRENCY EXCHANGE THE RUBLE ENDED THE LAST TRADING SESSION WHICH WAS LAST THURSDAY AT 692 TO THE DOLLAR FOLLOWING A SHORTLIVED STABILIZATION LAST MONTH AT 684 TO THE DOLLAR AN EXCHANGE SPOKESMAN PLAYED DOWN THE SIGNIFICANCE OF THE RUBLE BREAKING THE PSYCHOLOGICAL BARRIER OF 700 RUBLES TO THE DOLLAR FOR THE FIRST TIME PEOPLE ARE SO USED TO THE RUBLE GETTING WEAKER AND THE DOLLAR GETTING STRONGER THAT THIS IS NOTHING SPECIAL SERGEI NOVIKOV SAID THE AUCTIONS HAVE BEEN USED TO DETERMINE THE RUBLE'S EXCHANGE RATE AGAINST THE DOLLAR SINCE LAST JULY WHEN THE RUSSIAN GOVERNMENT STOPPED ARTIFICIALLY SETTING THE RATE 9304070090 930407 BUSINESS BRIEFS ASHLAND OIL INC'S SUPERAMERICA GROUP UNIT HAS COMPLETED THE PREVIOUSLY ANNOUNCED AGREEMENT TO SELL 51 OF ITS CONVENIENCE/GASOLINE STORES IN FLORIDA TO ROYAL DUTCH/SHELL GROUP'S SHELL OIL CO TERMS WEREN'T DISCLOSED WR GRACE & CO ACQUIRED THE KATALISTIKS FLUID CRACKING CATALYST ADDITIVE BUSINESS FROM A JOINT VENTURE OF UNION CARBIDE CORP AND ALLIEDSIGNAL INC TERMS WEREN'T DISCLOSED NEW WORLD POWER CORP SIGNED A LETTER OF INTENT TO PURCHASE 50 OF ENTEC SA DE CV A MEXICAN COMPANY ENGAGED IN RURAL ELECTRIFICATION FOR 15 MILLION ROADWAY SERVICES INC COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF CENTRAL FREIGHT LINES WACO TEXAS FOR 102 MILLION VAN DORN CO'S SHAREHOLDERS APPROVED ITS PLAN TO BE ACQUIRED BY CROWN CORK & SEAL CO FOR 175 MILLION CROWN CORK WILL SELL PART OF VAN DORN TO GERMANY'S MANNESMANN AG ALLIED WASTE INDUSTRIES INC COMPLETED AN ACQUISITION OF SEVERAL SOLIDWASTE COLLECTION AND LANDFILL COMPANIES FOR 108 MILLION 9304070089 930407 INTERNATIONAL JAPAN CONCERN ADMITS MAKING ILLEGAL PAYOFFS SPECIAL TO THE WALL STREET JOURNAL TOKYO A MAJOR JAPANESE CONSTRUCTION COMPANY ADMITTED THAT IT MADE ILLEGAL DONATIONS TO SEVERAL POLITICIANS INCLUDING FORMER KINGMAKER SHIN KANEMARU WHO HAS BEEN CHARGED WITH MASSIVE TAX EVASION THE STATEMENT BY KENJI MAEDA PRESIDENT OF MAEDA CORP MARKED ANOTHER CRACK IN THE WALL OF SECRECY THAT HAD SURROUNDED THE PAYOFFS THAT CONSTRUCTION COMPANIES ALLEGEDLY GIVE TO POWERFUL GOVERNING PARTY POLITICIANS PROSECUTORS SAY MUCH OF THE 185 BILLION YEN 163 MILLION THAT MR KANEMARU IS ACCUSED OF CONCEALING CAME FROM SUCH PAYOFFS MR MAEDA TOLD A NEWS CONFERENCE THAT THE GIFT TO MR KANEMARU WAS A THANK YOU AFTER THE COMPANY WON A CONTRACT FROM A PRIVATE DEVELOPER TO BUILD A GOLF COURSE IN MR KANEMARU'S HOME REGION OF YAMANASHI MR MAEDA REFUSED TO CONFIRM A REPORT IN THE NEWSPAPER ASAHI THAT THE GIFT WAS 10 MILLION YEN 87950 NOR DID HE SAY SPECIFICALLY WHAT MR KANEMARU HAD DONE TO RECEIVE THE PRESENT MR MAEDA ALSO SAID THE COMPANY GAVE ANNUAL GIFTS TO SEVERAL POLITICIANS INCLUDING MR KANEMARU BUT DIDN'T SPECIFY THE AMOUNTS THE DATES OR THE OTHER POLITICIANS JAPANESE POLITICAL FUNDS LAWS PROHIBIT GIFTS OF MORE THAN 15 MILLION YEN TO A POLITICIAN PER DONOR PER YEAR 9304070088 930407 REVIEW & OUTLOOK EDITORIAL WORTH A CLOSER LOOK LAST WEEK THE FEDERAL RESERVE BOARD APPROVED WORTHEN BANKING CORP'S ACQUISITION OF ANOTHER ARKANSAS BANK UNION NATIONAL BANK AT THE SAME TIME WORTHEN ANNOUNCED THAT THE BOARD HAD ORDERED AN INVESTIGATION OF WHETHER WORTHEN'S OWNERSHIP COMPLIED WITH THE BANK HOLDING COMPANY ACT THE CURIOUS APPROVALFIRST INVESTIGATIONLATER PROCEDURE CAUGHT OUR ATTENTION ESPECIALLY GIVEN THE IDENTITY OF THE PARTIES INVOLVED WORTHEN BANK AFTER ALL CAME UP WITH THE LOAN THAT KEPT BILL CLINTON'S CAMPAIGN GOING WHEN IT WAS RUNNING OUT OF CASH DURING THE NEW YORK PRIMARY MORE THAN 36 OF ITS STOCK IS HELD BY ARKANSAS BILLIONAIRE JACKSON STEPHENS AND HIS FAMILY THROUGH A FAMILY CORPORATION STEPHENS GROUP INC THEY ALSO CONTROL STEPHENS INC OFTEN CITED AS THE BIGGEST INVESTMENT BANK OFF WALL STREET PERHAPS NOT SURPRISINGLY GIVEN SUCH A LARGE FINANCIAL EMPIRE IN RELATIVELY SMALL ARKANSAS THE STEPHENS TIES REACH DEEP INTO THE CLINTON ADMINISTRATION HILLARY CLINTON FOR EXAMPLE REPRESENTED STEPHENS IN SOME MATTERS WHEN SHE WAS AT THE ROSE LAW FIRM WHITE HOUSE CHIEF OF STAFF THOMAS F MACK MCLARTY WAS CHAIRMAN OF THE NATURAL GAS UTILITY ARKLA INC ALSO HISTORICALLY AND FINANCIALLY CONNECTED WITH THE STEPHENS FAMILY THE STEPHENS INTERESTS WERE AMONG THE FEW LARGEST SOURCES OF CLINTON CAMPAIGN CASH AND WORTHEN STOCK JUMPED TO A 52WEEK HIGH ON THE DATE AFTER THE CLINTON VICTORY THE STEPHENS EMPIRE ATTRACTING MORE ATTENTION WITH THE RISE OF MR CLINTON IS AN UNUSUAL IF NOT UNIQUE ONE THE GLASSSTEAGALL ACT IS INTENDED TO SEPARATE INVESTMENT BANKING AND COMMERCIAL BANKING AND OTHER BANKING LEGISLATION IMPOSES CLOSE SCRUTINY OF DEALINGS BETWEEN BANKS AND THEIR AFFILIATED COMPANIES IN ADDITION STEPHENS INC PLAYED A ROLE IN THE PURCHASE OF THE FIRST AMERICAN BANK BY THE BANK OF CREDIT AND COMMERCE INTERNATIONAL IN A LETTER TO THE EDITOR OF THIS NEWSPAPER ON NOVEMBER 18 JACKSON STEPHENS EXPLAINED THAT THE ONLY LINK WAS THAT THE BCCI FIGURES SHOWED UP IN LITTLE ROCK AND OPENED BROKERAGE ACCOUNTS THE FEDERAL RESERVE ORDER APPROVING WORTHEN'S ACQUISITION SAID IT WAS SPECIFICALLY CONDITIONED UPON COMPLIANCE WITH ALL THE COMMITMENTS GIVEN IN CONNECTION WITH THESE APPLICATIONS BUT DID NOT SPELL OUT THE COMMITMENTS OR MENTION THE INVESTIGATION THE WORTHEN PRESS RELEASE SAID THE INVESTIGATION WAS INTENDED TO REVIEW THE OWNERSHIP AND CONTROL OF WORTHEN BANKING CORP FOR COMPLIANCE WITH THE BANK HOLDING COMPANY ACT INCLUDING THE NATURE AND EXTENT OF THE RELATIONSHIPS BETWEEN WORTHEN BANKING CORP AND STEPHENS GROUP INC AND ITS SUBSIDIARIES IT ALSO SPELLED OUT THREE SETS OF CONDITIONS FIRST APPROVAL WAS GRANTED IN RELIANCE UPON REPRESENTATIONS AND COMMITMENTS TO THE EFFECT THAT STEPHENS GROUP AND ITS SUBSIDIARIES DO NOT AND WILL NOT EXERT CONTROL OVER THE MANAGEMENT OR POLICIES OF WORTHEN BANKING CORP WHICH IS TO SAY PRECISELY WHAT IS TO BE INVESTIGATED ALSO THAT STEPHENS GROUP WILL COMPLY WITH SECTIONS 23A AND 23B OF THE FEDERAL RESERVE ACT WHICH REGULATE TRANSACTIONS BETWEEN A BANK AND AFFILIATES TO PRECLUDE SELFDEALING AND FINALLY THAT STEPHENS FAMILY MEMBERS WILL COOPERATE WITH THE MANAGEMENT OF INVESTARK BANKSHARES INC TO PROMPTLY ACHIEVE A CONVERSION OF FIRST NATIONAL BANK OF STUTTGART FROM A NATIONAL BANK TO A STATE NONMEMBER BANK THE APPARENT SIGNIFICANCE OF THIS STIPULATION IS THAT A STATE BANK THAT DOES NOT JOIN THE FEDERAL RESERVE SYSTEM IS NOT SUBJECT TO GLASSSTEAGALL THIS STRIKES US AS A HEAVY LOAD OF REGULATORY RESERVATIONS A FEELING WE HAVE BEEN DISCUSSING THIS WEEK WITH THE FED'S GENERAL COUNSEL AND PRESS OFFICES THE FED WANTED TO INVESTIGATE THE TALK OF DE FACTO STEPHENS CONTROL OF WORTHEN ITS SPOKESMAN EXPLAINED BUT IN THE ABSENCE OF A CLEAR VIOLATION OF LAW THERE DIDN'T SEEM TO BE ANY REASON TO HOLD UP THE MERGER DESPITE A NINE OR 10MONTH INVESTIGATION BY THE ST LOUIS FEDERAL RESERVE HE ADDED WE JUST COULDN'T FIND ANY VIOLATION OF THE LAW AS A PRECEDENT FOR SIMULTANEOUSLY APPROVING AND INVESTIGATING THE FED CITES THE ACQUISITION OF THE FAILED BANK OF NEW ENGLAND BY FLEET/NORSTAR FINANCIAL GROUP THE FED APPROVED THE ACQUISITION WHILE SETTING UP AN INVESTIGATION OF CHARGES THAT A FLEET MORTGAGE SUBSIDIARY HAD VIOLATED THE TRUTH IN LENDING ACT BUT UNLIKE THE WORTHEN ORDER THE FLEET ONE DETAILED BOTH THE CHARGES TO BE INVESTIGATED AND THE REASON FOR URGENT APPROVAL NAMELY THAT THE FEDERAL DEPOSIT INSURANCE CORP WANTED TO STANCH THE BLEEDING AT THE FAILED BANK IN THE WORTHEN CASE THE URGENCY WAS THAT THE MERGER CONTRACT WAS ABOUT TO EXPIRE AND THE FED HAD IMPOSED A DEADLINE ON ITSELF FOR ACTING ON MERGER APPLICATIONS NOW IT IS NOT IN ITSELF OF NATIONAL MOMENT WHETHER WORTHEN BUYS ANOTHER BANK TO GROW FROM 111 OF ARKANSAS DEPOSITS TO 136 WE HAVE NO DOUBT THE STEPHENS INTERESTS HAVE EXCELLENT LAWYERS WHO CAN FIND THE BEST WAYS AROUND THE LIKES OF GLASSSTEAGALL THE WORTHEN STOCKHOLDINGS ARE INDIVIDUAL RATHER THAN CORPORATE FOR EXAMPLE AND WORTHEN CHAIRMAN CURT BRADBURY IS A FORMER STEPHENS EXECUTIVE RATHER THAN A PRESENT ONE PERHAPS GLASSSTEAGALL IS OVERLY RESTRICTIVE AND NEVER SHOULD HAVE BEEN ENACTED IN THE FIRST PLACE IN LIGHT OF MR STEPHENS'S CHARGES THAT WE ARE PICKING ON HIM WE SHOULD ADD THAT STEPHENS INC HAS DONE A LOT OF VALUABLE INVESTMENT BANKING FOR ITS CLIENTS IT'S ALSO TRUE THAT THE FEDERAL RESERVE IS AN INDEPENDENT BODY TO WHICH THE CLINTON ADMINISTRATION HAS MADE NO APPOINTMENTS AND THAT THE STEPHENS FAMILY ALSO CONTRIBUTES TO REPUBLICANS AND WAS NOT EXACTLY WITHOUT INFLUENCE IN PRIOR ADMINISTRATIONS STILL BANKING REGULATIONS DO MATTER ESPECIALLY IN THE WAKE OF CONCERNS RAISED BY THE BCCI AND SAVINGS AND LOAN SCANDALS AND IN OUR OWN VIEW IT COULD SCARCELY BE CLEARER THAT WORTHEN AND STEPHENS ARE PARTS OF THE SAME FINANCIAL EMPIRE PERHAPS LEGAL MANEUVERING HAS KEPT THEM WITHIN THE EDGE OF THE LAW BUT IT SEEMS TO US THAT IN ONE WAY OR ANOTHER THE STEPHENS INTERESTS HAVE MANAGED TO STAKE OUT A PRIVILEGED POSITION REGULATORS PRECLUDE FOR OTHER FINANCIAL FIRMS WE RECENTLY USED THE PHRASE MORES CONDITIONED IN ARKANSAS AND A LETTER FROM A JUSTICE OF THE STATE'S SUPREME COURT BERATED US FOR A GRATUITOUS SWIPE WITHOUT INSULTING EVERYONE IN THE STATE THOUGH THAT IS PRECISELY THE POINT STATES DO HAVE THEIR POLITICAL AND BUSINESS CULTURES AND ARKANSAS MORES HAVE MOVED TO WASHINGTON WE USED THE OFFENDING PHRASE IN AN EDITORIAL ABOUT FORMER ROSE PARTNER WEBSTER HUBBELL AND HIS WHITE HOUSE LIAISON ROLE AT THE JUSTICE DEPARTMENT WHERE HE HAS JUST BEEN MADE ASSOCIATE ATTORNEY GENERALDESIGNATE WE ALSO NOTE REPORTS THAT THE RACE FOR FDIC CHAIRMAN IS BETWEEN TWO ARKANSAS BANKERS ONE OF THEM BACKED BY WORTHEN SO IF THE FED FEELS IT MUST GIVE PERMISSION FOR WORTHEN TO EXPAND WE CERTAINLY HOPE THAT ITS PROMISED INVESTIGATION ACTUALLY EVENTUATES GIVEN THE BROAD SIGNIFICANCE WE FURTHER HOPE THE FED WILL TELL US WHAT IT LEARNS ABOUT THE WAY THINGS ARE DONE IN ARKANSAS INDEED IF THE DISTRICT BANK INQUIRY HAS SO FAR EXONERATED THE WORTHENSTEPHENS LINKS THE BOARD COULD CALM OUR CONCERNS BY SHARING WITH US THE ST LOUIS FINDINGS 9304070087 930407 TECHNOLOGY HARVARD MEDICAL SCHOOL RECEIVES 20 MILLION GIFT BOSTON HARVARD MEDICAL SCHOOL SAID IT RECEIVED A 20 MILLION GIFT THE LARGEST IN ITS 200YEAR HISTORY FROM THE WARREN ALPERT FOUNDATION TO ENDOW A NEW RESEARCH BUILDING WARREN ALPERT OF NEW YORK FOUNDED CLOSELY HELD WARREN EQUITIES INC AND WARREN COS WHICH MARKET PETROLEUM AND FOOD PRODUCTS MR ALPERT IS A GRADUATE OF HARVARD BUSINESS SCHOOL AND WAS A FOUNDING DONOR OF A NEW MEDICAL SCHOOL CURRICULUM WHICH BRINGS THE CASEMETHOD APPROACH TO MEDICAL EDUCATION SIX YEARS AGO HE CREATED THE WARREN ALPERT FOUNDATION PRIZE IN BIOMEDICAL RESEARCH ADMINISTERED BY HARVARD MEDICAL SCHOOL GIVEN ANNUALLY TO A SCIENTIST OR RESEARCH TEAM MAKING SIGNIFICANT ADVANCES TOWARD THE CURE OF A DISEASE MR ALPERT SERVES ON THE BOARD OF FELLOWS OF HARVARD MEDICAL SCHOOL AND WAS A TRUSTEE OF BOTH BOSTON UNIVERSITY AND EMERSON COLLEGE 9304070086 930407 MESA IS SEEKING TO DEFER INTEREST OF 293 MILLION BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL MESA INC IN A NOTIFICATION TO THE NEW YORK STOCK EXCHANGE SAID IT MIGHT NOT PAY REGULARLY SCHEDULED INTEREST OF 293 MILLION ON 600 MILLION OF SUBORDINATED NOTES MESA A DALLAS NATURALGAS PRODUCTION COMPANY SAID IT IS STILL NEGOTIATING WITH NOTEHOLDERS TO DEFER THE PAYMENTS THE COMPANY IS WRANGLING WITH THE NOTEHOLDERS CONCERNING A PROPOSED EXCHANGE OFFER WHICH SEEKS TO EXCHANGE A NEW SERIES OF ZEROCOUPON DEFERRED INTEREST BONDS FOR ITS EXISTING 600 MILLION OF SUBORDINATED NOTES ALTHOUGH BOTH PARTIES SAY PROGRESS HAS BEEN MADE MESA SAID THERE IS NO ASSURANCE THAT AN ACCORD CAN BE REACHED BY MAY 1 WHEN THE INTEREST IS DUE BURDENED WITH 13 BILLION OF LONGTERM DEBT MESA HAS INCURRED TWO CONSECUTIVE YEARS OF NET LOSSES THE COMPANY IS HANGING ITS HOPES ON HIGHER NATURAL GAS PRICES AND COMPLETION OF ITS DEBT RESTRUCTURING MESA PREVIOUSLY HAS INDICATED THAT AVAILABLE CASH AND CASH FLOW FROM OPERATIONS WILL BE INSUFFICIENT TO COVER ITS DEBT SERVICE OBLIGATIONS AND FUND CAPITAL EXPENDITURES OVER THE NEXT SEVERAL YEARS FURTHER THE COMPANY FACES A POTENTIAL COVENANT DEFAULT ON ITS SENIOR BANK CREDIT FACILITY AT THE END OF THE SECOND OR THIRD QUARTER OF 1993 WHICH MIGHT CAUSE THE BANK TO ASK FOR PAYMENT OF THE 110 MILLION OF DEBT MESA IS IN DISCUSSIONS WITH ITS LEAD BANK CONCERNING THE RESTRUCTURING OF THAT DEBT THE REST OF MESA'S APPROXIMATELY 13 BILLION LONGTERM DEBT ALREADY HAS BEEN RESTRUCTURED A SPOKESMAN SAID FURTHER A NEGATIVE OUTCOME OF A LAWSUIT BROUGHT BY UNOCAL CORP EXPECTED TO GO TO TRIAL IN JUNE WOULD MATERIALLY AFFECT THE COMPANY'S FINANCIAL POSITION SAID MESA THE LAWSUIT RELATES TO MESA'S 1985 PURCHASE OF A STAKE IN UNOCAL A LOS ANGELESBASED OIL AND GAS PRODUCTION AND EXPLORATION COMPANY UNOCAL ALLEGES THAT MESA WAS TECHNICALLY AN INSIDER AND THEREFORE SHOULD BE STRIPPED OF ITS PROFITS ON THE SUBSEQUENT DISPOSITION OF THE UNOCAL STOCK SAID THE MESA SPOKESMAN MOODY'S INVESTORS SERVICE INC RATES MESA'S NOTES AT CAA WHICH IMPLIES A HIGH RISK OF BANKRUPTCY SAID BILL CHRISTMAN A NATURALGAS SENIOR ANALYST WITH THE RATINGS AGENCY THE BONDS ARE IN POOR STANDING AND THERE ALWAYS IS THAT POSSIBILITY OF BANKRUPTCY HE SAID BOTH SERIES OF NOTES NOW WILL TRADE WITHOUT ACCRUED INTEREST THE 12 SERIES ALREADY HAS BEEN TRADING ON THAT BASIS SINCE APRIL WHEN MESA ADVISED THE NEW YORK EXCHANGE THAT INTEREST MIGHT BE PAID IN COMMON STOCK WALL STREET REACTED NEGATIVELY TO THE NEWS AS MESA'S COMMON SHARES CLOSED DOWN 875 CENTS TO 4125 YESTERDAY IN COMPOSITE TRADING ON THE BIG BOARD 9304070085 930407 REVIEW & OUTLOOK EDITORIAL LIVING FREE REP PAT SCHROEDER HAD AN INTERESTING RESPONSE RECENTLY WHEN ASKED WHY WASHINGTON SHOULD FORCE TAXPAYERS TO PAY FOR ABORTIONS FOR POOR WOMEN WELL THEY PAY FOR EVERYTHING ELSE SHE SAID IT SEEMS SO THESE DAYS BUT A FEW BRAVE FOLK IN NEW HAMPSHIRE ARE BREAKING RANKS AT A TIME WHEN EVERY COMMUNITY SEEMS TO BE BEGGING WASHINGTON TO PAY FOR WHAT ARE ESSENTIALLY LOCAL CONCERNS AT LEAST TWO TOWNS IN NEW HAMPSHIRE ARE SAYING THAT DEPENDENCY ON THE FEDERAL GOVERNMENT HAS GONE TOO FAR THE GOVERNING BOARDS OF WAKEFIELD POP 3000 AND PETERBOROUGH POP 5200 UNANIMOUSLY VOTED LAST WEEK NOT TO ACCEPT FEDERAL DISASTER RELIEF AID FOR THE MARCH BLIZZARD BOTH TOWNS STOOD TO GAIN ABOUT 3000 EACH TO PAY FOR PLOWING EXPENSES BUT THEY DECIDED THEY DIDN'T REALLY DESERVE IT PEOPLE HAVE TO TAKE RESPONSIBILITY FOR THEMSELVES AND NOT LOOK TO WASHINGTON TO BAIL THEM OUT WAKEFIELD SELECTMAN CHRIS BANCROFT TOLD US WHY RUN TO THE GOVERNMENT EVERY TIME SOMETHING HAPPENS ECHOED JEFFERSON ALLEN OF PETERBOROUGH ADDING I HOPE THIS STARTS A TREND PEOPLE NEED TO BE RESPONSIBLE NO DOUBT MEMBERS OF CONGRESS MUST THINK MESSRS BANCROFT AND ALLEN ARE OFF THEIR ROCKERS WITH SUCH TALK WE'D LIKE TO THINK THEY REPRESENT THE BETTER INSTINCTS IN THE AMERICAN CHARACTER THAT THERE ARE MANY OTHERS WHO WOULD AGREE THAT IT'S SIMPLY NOT POSSIBLE OR DESIRABLE FOR THE FEDERAL GOVERNMENT TO RESPOND TO ALL THE WORLD'S WANTS 9304070084 930407 POLITICS & POLICY WASTE TECHNOLOGIES GETS CLEARANCE FOR INCINERATOR WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY GAVE WASTE TECHNOLOGIES INDUSTRIES THE GOAHEAD TO START LIMITED COMMERCIAL OPERATION OF ITS HAZARDOUSWASTE INCINERATOR IN EAST LIVERPOOL OHIO THE COMPANY HOWEVER MUST GET APPROVAL FROM THE OHIO ENVIRONMENTAL PROTECTION AGENCY BEFORE OPERATION CAN BEGIN IN ANNOUNCING THE ACTION THE EPA'S REGIONAL OFFICE IN CHICAGO SAID THE COMPANY WOULD BE LIMITED AS TO THE TYPES OF WASTE THAT CAN BE BURNED AND THE CONDITIONS UNDER WHICH IT CAN BE BURNED THE AGENCY SAID IT WOULD MAKE FREQUENT UNANNOUNCED INSPECTIONS OF THE INCINERATOR TO MAKE SURE ALL PROCEDURES ARE BEING FOLLOWED FULL COMMERCIAL OPERATION WON'T BE ALLOWED UNTIL THE EPA COMPLETES FURTHER STUDIES OF THE INCINERATOR'S SAFETY INCLUDING THE POTENTIAL HEALTH RISK FROM DIOXIN THE EPA'S DECISION IS A SETBACK TO THE ENVIRONMENTAL GROUPS THAT HAVE CAMPAIGNED AGAINST THE INCINERATOR WHICH IS LOCATED 1100 FEET FROM AN ELEMENTARY SCHOOL WASTE TECHNOLOGIES INDUSTRIES IS A UNIT OF VON ROLL LTD OF SWITZERLAND 9304070083 930407 AUTOS GM IS OFFERED PLAN TO RESOLVE TRUCK DISPUTE BY DOUGLAS LAVIN AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL CONSUMER ADVOCATES SAY GENERAL MOTORS CORP COULD RESOLVE FOR 65 A VEHICLE THE NASTY CONTROVERSY OVER 47 MILLION PICKUP TRUCKS WITH SIDEMOUNTED GAS TANKS THERE'S ONLY ONE PROBLEM GM SAYS NO SUCH SOLUTION IS NEEDED THE DISAGREEMENT ILLUSTRATES A CLASSIC DILEMMA FOR BIG COMPANIES UNLUCKY ENOUGH TO HAVE THE SAFETY OF A HIGHPROFILE PRODUCT COME UNDER FIRE FROM CONSUMER ADVOCATES LAWYERS AND REPORTERS GM COULD TRY TO ASSUAGE ANXIOUS REGULATORS AND CONSUMERS BY OFFERING TO REENGINEER GAS TANKS ON 19731987 PICKUPS SO AS TO MINIMIZE THE RISK THAT THOSE TANKS COULD CATCH FIRE IN A SIDEIMPACT CRASH BUT IF GM DOES COMPANY OFFICIALS SAY THERE COULD BE MORE LAWSUITS LIKE ONE IN GEORGIA THAT RESULTED IN A 105 MILLION JURY VERDICT AGAINST THE COMPANY YET IF GM DOES NOTHING IT RISKS MORE SCENES LIKE THE ONE YESTERDAY IN WASHINGTON SAFETY ADVOCATES YESTERDAY CALLED A NEWS CONFERENCE TO ADVANCE WHAT THEY SAY IS A PRACTICAL AND RELATIVELY INEXPENSIVE SOLUTION TO SAFETY PROBLEMS IN GM PICKUPS WITH SIDEMOUNTED GAS TANKS A PROTECTIVE CAGE THAT THEY SAY WOULD BRING THE COST OF RECALLING THE PICKUPS DOWN TO LITTLE MORE THAN 200 MILLION WHAT'S MORE FOR THE FIRST TIME THE CAGES APPEAR TO PRESENT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION WITH A POSSIBLE REGULATORY OPTION THAT WON'T PUT AN ENORMOUS FINANCIAL STRAIN ON THE TROUBLED AUTO MAKER UNTIL NOW THE CLINTON ADMINISTRATION WHICH HAS SO FAR FAILED TO APPOINT AN ADMINISTRATOR OF THE NHTSA FACED THE UNAPPEALING OPTIONS OF EITHER FAILING TO ACT ON THE TRUCKS' ALLEGED SAFETY PROBLEMS OR HITTING THE AUTO MAKER WITH A RECALL THAT SOME ANALYSTS HAVE SAID WOULD COST MORE THAN 1 BILLION GM COULD FIX THIS DEFECT WITHOUT BANKRUPTING ITSELF SAID CLARENCE DITLOW DIRECTOR OF THE CENTER FOR AUTO SAFETY WHICH CALLED A NEWS CONFERENCE YESTERDAY TO DISCUSS GM'S USE OF THE CAGE IN PICKUP CHASSIS GM USED THE CAGE IN INCOMPLETE PICKUP CHASSIS IT SELLS TO BODY SHOPS WHICH THEN MOUNT DIFFERENT KINDS OF CARGO BOXES ON THE PICKUP FRAMES BUT GM DISPUTES THE CONTENTION THAT ITS TRUCKS NEED ANY FUELSYSTEM REINFORCEMENT OR THAT INSTALLATION OF THE CAGES WOULD BE PRACTICAL PREVIOUS RECALL ESTIMATES HAVE BEEN GROSSLY UNDERESTIMATED BY PEOPLE WHO DON'T UNDERSTAND WHAT'S INVOLVED A SPOKESMAN SAID CRITICS CHARGE THAT PICKUPS OF GM WHICH UNLIKE ITS COMPETITION HAS GASOLINE TANKS OUTSIDE THE FRAME RAILS EXPLODE TOO EASILY WHEN SIDESWIPED FEDERAL FATAL ACCIDENT RECORDS SHOW THAT OVERALL THE GM TRUCKS ARE COMPARABLE TO OTHER LARGE PICKUPS AND SAFER THAN SMALLER CARS BUT WHEN THE FOCUS IS NARROWED TO THE RELATIVELY INFREQUENT FATAL SIDE ACCIDENT WITH A FIRE THE DATA ALSO SHOW THAT THE TRUCKS ARE INVOLVED IN ABOUT TWICE AS MANY FIRES AS ITS COMPETITORS THE DATA ABOUT SAFETY SEEM CONTRADICTORY THAT'S BECAUSE THE TRUCKS ARE MOST DANGEROUS ONLY IN A KIND OF ACCIDENT THAT IS RARE ENOUGH TO BE MASKED BY THE TRUCKS' OVERALL FATALITY RATE BUT GLARING ENOUGH TO CONTRIBUTE TO AN ATLANTA JURY'S DECISION AGAINST GM IN EARLY FEBRUARY THE JURY AWARDED THE SURVIVORS OF A BOY WHO DIED IN ONE SUCH ACCIDENT 105 MILLION SUCH A SIZABLE AWARD AND THE THREAT HANGING OVER GM OF FUTURE VERDICTS ARE STRONG INDUCEMENTS TO MOVE TO A COMPROMISE BUT THIS IS A CASE IN WHICH BOTH LAW AND POLITICS ARE ALL BUT PARALYZING BOTH GM AND FEDERAL SAFETY REGULATORS THE LEGAL SYSTEM DOESN'T ENCOURAGE AN EASY SOLUTION INDEED GM EXECUTIVES SAY PRIVATELY THAT ANY ADMISSION OF A PROBLEM WOULD SIMPLY OPEN THE DOOR TO A FLOOD OF LITIGATION THE COST WOULD BE STEEP IN REPUTATION AND MONEY ALREADY GM FACES 22 SUITS OUTSTANDING FROM TRUCK OWNERS SEEKING REPAIRS AND COMPENSATION FOR VALUE LOST BECAUSE OF THE CONTROVERSY IN ADDITION THE COMPANY FACES AN UNDISCLOSED NUMBER OF SUITS FILED BY ACCIDENT VICTIMS POLITICALLY THE CLINTON ADMINISTRATION KNOWS THAT IT FACES SEVERE CRITICISM FROM SAFETY ADVOCATES IF IT IS SEEN AS SOFT ON GM BUT THE WHITE HOUSE WILL BE HOTLY CRITICIZED IF IT CAUSES A SEVERE FINANCIAL SETBACK TO THE US'S WOBBLY MANUFACTURING GIANT SO INSTEAD ALL SIDES ARE JOCKEYING FOR POSITION AS THE NHTSA NEARS A DECISION EXPECTED WITHIN A FEW MONTHS ON WHETHER TO RECALL THE TRUCKS GM SEEMED TO HAVE GAINED THE UPPER HAND A FEW DAYS AFTER THE ATLANTA VERDICT WHEN IT SUCCESSFULLY ACCUSED NBC'S DATELINE PROGRAM OF RIGGING GM TRUCKS WITH TOY ROCKETS FOR AN EXPOSE ON THE TRUCKS' SAFETY AT THE TIME MR DITLOW WHO STARTED MUCH OF THE PICKUPTRUCK CONTROVERSY BY FILING FOR A RECALL LAST SUMMER LOST FACE BY SAYING INCORRECTLY THAT NBC HAD FOLLOWED ACCEPTED TESTING PROCEDURE BUT YESTERDAY IT WAS MR DITLOW'S TURN TO ACCUSE GM HE SAID THE AUTO MAKER HAD COVERED UP THE EXISTENCE OF THE CAGE WHICH WAS DESIGNED BY GM TO PROTECT THE FUEL TANKS ON CHASSIS SOLD WITHOUT A PICKUP BED GM DENIED ANY COVERUP PRODUCING PHOTOS OF THE CAGES IT HAD PREVIOUSLY SUPPLIED TO FEDERAL REGULATORS GM CALLED THE COVERUP ALLEGATION GROSSLY INACCURATE AT THE NEWS CONFERENCE MR DITLOW SAID THE CAGE IS THE NEXT BEST THING TO HAVING THE TANK INSIDE THE FRAME FROM 1973 THROUGH 1983 GM EQUIPPED THE GAS TANKS ON SOCALLED CHASSIS CABS WITH STEEL CAGES AS A SAFEGUARD AGAINST PUNCTURING IN 1984 THE COMPANY SWITCHED TO A PLASTIC SHIELD MR DITLOW SAID IN ORDER TO STOP THE DANGER OF FUEL LEAKAGE IN THE 19731987 PICKUPS MR DITLOW SAID GM ENGINEERS WOULD HAVE TO LENGTHEN THE CAGE AND USE IT TO ENCLOSE A PORTION OF THE TANKS BENEATH THE CAB BUT HE ESTIMATED THAT THE CAGE WOULD ONLY COST 65 A TRUCK TO INSTALL BECAUSE THE NUMBER OF TRUCKS ON THE ROAD STEADILY DECLINES THROUGH ATTRITION HE ESTIMATED THERE ARE ONLY 45 MILLION OF THE PICKUPS ON THE ROAD AND THAT ONLY ABOUT 70 OF THE OWNERS WOULD RESPOND TO A RECALL FOR A TOTAL COST OF 208 MILLION THAT'S CONSIDERABLY LESS THAN PREVIOUS ESTIMATES OF 200 A TRUCK MR DITLOW SAID HE ONLY LEARNED ABOUT GM'S USE OF THE RELATIVELY INEXPENSIVE CAGES FROM STEVEN WEIL A GARAGE OWNER IN BIRMINGHAM ALA WHO SPECIALIZES IN CONVERTING CHASSIS CABS INTO WRECKERS AND WHO WORKS FOR TRIAL LAWYERS IN PRODUCTLIABILITY CASES MR WEIL SAID HE FOUND OUT ABOUT THE CAGE AFTER ONE WAS DISCOVERED ON A FLATBED TRUCK IN A BIRMINGHAM JUNKYARD THE ATTACKS AND COUNTERATTACKS SHOW NO SIGN OF ABATING YESTERDAY MR DITLOW RELEASED YET ANOTHER POTENTIALLY DAMAGING INTERNAL GM DOCUMENT IN NOVEMBER GM WAS ALL BUT FORCED BY A TEXAS COURT CASE TO RELEASE SOME 70000 PAGES OF INTERNAL DOCUMENTS ON THE TRUCKS INCLUDING ONE THAT DESCRIBED THE SIDEMOUNTED TANKS AS POTENTIAL LEAKERS THE DOCUMENT RELEASED YESTERDAY WAS DISTRIBUTED TO SALESMEN IN THE LATE 1980S AND TICKS OFF THE ADVANTAGES OF GM'S REDESIGNED 1988 PICKUP THE FUEL TANK IS MOUNTED INSIDE THE FRAME RAILS TO REDUCE THE CHANCE OF FUEL SPILLAGE UPON SIDE IMPACT SAYS THE GM TARGET TRUCKS SELLING GUIDE GM CALLS THE DOCUMENT A FLUKE THAT DOES NOT REPRESENT THE AUTO MAKER'S POSITION 9304070082 930407 WHO'S NEWS PETROMINERALS CORP PETROMINERALS CORP TUSTIN CALIF LARRY S DODSON WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR OF THIS OIL AND GAS CONCERN EFFECTIVE APRIL 15 MR DODSON 52 YEARS OLD FILLS A VACANCY CREATED AFTER THE DEPARTURE OF EVERETT L HODGES WHO RESIGNED 14 MONTHS AGO AFTER HIS DEPARTURE KENNETH M PADULA CHIEF FINANCIAL OFFICER AND VICE PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF ADMINISTRATIVE OFFICER HE CONTINUES IN THOSE POSTS THE COMPANY SAID MR DODSON IS CHAIRMAN OF BLACK WARRIOR WIRELINE CORP AN OIL FIELD SERVICES CONCERN HIS ELECTION TO THE BOARD INCREASES IT TO EIGHT MEMBERS 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 9304070081 930407 WHO'S NEWS SALOMON INC SALOMON INC NEW YORK JEROME H BAILEY 40 YEARS OLD WILL BECOME CHIEF FINANCIAL OFFICER OF THIS INVESTMENT BANKING FIRM SUCCEEDING DONALD S HOWARD 65 MR BAILEY WHO WILL BE A MANAGING DIRECTOR AND MEMBER OF SALOMON'S EXECUTIVE COMMITTEE PREVIOUSLY WAS A MANAGING DIRECTOR AND CONTROLLER OF MORGAN STANLEY GROUP INC NEW YORK MR BAILEY WILL WORK WITH MR HOWARD IN THE NEXT FEW MONTHS BEFORE MR HOWARD'S SCHEDULED RETIREMENT AT YEAR'S END 9304070080 930407 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB THE CLINTON ADMINISTRATION LAST WEEK BUCKLED IN TO WESTERN MINERS AND RANCHERS WHO WERE HOWLING THAT THE CLINTON ECONOMIC PLAN WAS ABOUT TO TAKE A BIG PIECE FROM THEIR HIDES NOW THE WHITE HOUSE IS TRYING TO SHOW THAT IT HASN'T BEEN THOROUGHLY TRAMPLED IN THIS SAGEBRUSH REBELLION BUT THAT'S A TOUGH CASE TO MAKE AND THEREIN LIE SOME IMPORTANT LESSONS ABOUT THE US WEST AS WELL AS THE PRACTICAL LIMITS ON PRESIDENT CLINTON'S ABILITY TO BE A REAL AGENT OF CHANGE TO UNDERSTAND THIS SAGA LOOK THROUGH THE EYES OF OKLAHOMA REP MIKE SYNAR HE HAS ARGUED THAT ONE WAY TO CUT THE FEDERAL DEFICIT WOULD BE TO CHARGE MORE TO RANCHERS WHO PAY BELOWMARKET FEES TO GRAZE CATTLE ON FEDERAL LAND AND MINERS WHO TAKE MINERALS FROM BENEATH FEDERAL SOIL WITHOUT PAYING A PENNY OF ROYALTIES SO HE WAS PLEASED WHEN PRESIDENT CLINTON PROPOSED RAISING GRAZING FEES AND CHARGING MINING ROYALTIES AND STEAMED WHEN THE ADMINISTRATION GAVE IN TO PRESSURE FROM WESTERN SENATORS AND DROPPED THOSE PLANS NOW IN RAPID ORDER THE CONGRESSMAN HAS HEARD FROM INTERIOR SECRETARY BRUCE BABBITT BUDGET DIRECTOR LEON PANETTA WHITE HOUSE CHIEF OF STAFF MACK MCLARTY TWICE AND WHITE HOUSE LEGISLATIVE DIRECTOR HOWARD PASTER THREE TIMES THEY ARE CALLING TO INSIST THEY MADE ONLY A TACTICAL RETREAT TO GET PRESIDENT CLINTON'S BROAD BUDGET OUTLINE PASSED AND WILL FIGHT FOR CHANGES LATER REP SYNAR IS ENCOURAGED BUT IN REALITY IT'S LIKELY TO BE HARDER TO EXTRACT HIGHER PAYMENTS FROM RANCHERS AND MINERS WHEN THEIR INTERESTS ARE DEBATED SEPARATELY RATHER THAN AS A PART OF AN OVERALL PACKAGE OF SHARED SACRIFICE THE STRUGGLE OVER THE WEST WILL CONTINUE WESTERNERS LIKE TO PROFESS DISDAIN FOR THE FEDERAL GOVERNMENT AND PROCLAIM THAT THEY WANT IT TO LEAVE THEM ALONE BUT IN TRUTH MANY OF THESE WESTERNERS' LIVELIHOODS DEPEND ON FEDERAL PROGRAMS AND MANY OF THESE PROGRAMS WERE ESTABLISHED LONG AGO TO ACCOMPLISH GOALS THAT TIME HAS PASSED BY BY THE QUIRKS OF HISTORY THE FEDERAL GOVERNMENT OWNS MUCH OF THE LAND IN THE WEST A THIRD OF ALL MONTANA AND TWOTHIRDS OF UTAH FOR INSTANCE TO SETTLE THESE LANDS THE GOVERNMENT ONCE DECIDED TO GIVE AWAY THE RIGHT TO GRAZE CATTLE AND OPEN MINES SO IN 1872 CONGRESS PASSED A LAW THAT ALLOWED MINERS TO EXTRACT MINERALS SUCH AS GOLD ZINC AND SILVER ON FEDERAL LANDS WITHOUT PAYING ANY ROYALTIES MINERS COULD STAKE A CLAIM ACQUIRE MINING RIGHTS FOR A SMALL FEE AND AND KEEP THE RIGHTS BY SIMPLY SHOWING THEY HAD DONE 100 OF WORK ANNUALLY TO DEVELOP THE CLAIM AMAZINGLY THAT 120YEAROLD LAW STILL BASICALLY GOVERNS MINING ON MILLIONS OF ACRES OF FEDERAL LANDS AND CRITICS SUCH AS DEMOCRATIC SEN DALE BUMPERS OF ARKANSAS COMPLAIN THAT IT IS USED NOT JUST BY HARDY INDEPENDENT MINERS BUT BY BIG BRITISH AND CANADIAN COMPANIES TO SPIRIT MINERALS OFF PUBLIC LANDS WITHOUT ANY BENEFIT TO THE FEDERAL TREASURY THE CLINTON ADMINISTRATION THINKS MINERS SHOULD BE CHARGED A 125 ROYALTY ON THE MINERALS SEN BUMPERS THINKS THAT IS TOO HIGH AND PROPOSES 8 THE BASIC LAW SETTING GRAZING FEES WAS PASSED IN 1934 AND WAS SUPPLEMENTED BY A 1978 ACT CREATING A FORMULA TO ESTABLISH THE FEES THE PROBLEM TODAY IS THAT SOME ESTIMATES SAY THE FAIR MARKET VALUE OF GRAZING RIGHTS IS TWO TO FIVE TIMES HIGHER THAN WHAT THE FEDERAL GOVERNMENT CHARGES THOSE ESTIMATES ARE HOTLY DISPUTED BY WESTERN SENATORS WHO COMPLAIN THAT THEY DON'T FULLY TAKE INTO ACCOUNT THAT RANCHERS HAVE TO INVEST TO BUILD ROADS AND EXTRACT WATER ON FEDERAL LANDS THERE'S NO DOUBT THAT THE ISSUE IS COMPLEX THE CONSERVATIVE HERITAGE FOUNDATION USUALLY THE ENEMY OF FEDERAL SUBSIDIES LARGE AND SMALL STUDIED THE GRAZINGFEE ISSUE LAST YEAR AND CONCLUDED FEES SHOULDN'T BE RAISED BUT EVEN SOME WESTERNERS ACKNOWLEDGE SOME ALTERATIONS MAKE SENSE I AND OTHERS WHO HAVE WORKED ON ISSUES OF MINING AND GRAZING RECOGNIZE SOME NEED FOR ADJUSTMENT AND CHANGE SAID IDAHO REPUBLICAN SEN LARRY CRAIG RECENTLY IF MR CLINTON WANTED RADICAL CHANGE HE MIGHT STOP BEING THE WEST'S BIGGEST LANDLORD BY SIMPLY SELLING SOME LAND TO RANCHERS AND MINERS OUTRIGHT BUT THE ADMINISTRATION'S BEST HOPE IS SIMPLY THAT WESTERN INTERESTS IN CELEBRATING THEIR VICTORY LAST WEEK SHOT THEMSELVES IN THE FOOT BY CALLING SO MUCH ATTENTION TO THE GRAZING AND MINING ISSUES THAT THEY HAVE ACTUALLY FUELED THE SENTIMENT FOR CHANGES DOWN THE LINE THE MONEY INVOLVED ISN'T ENORMOUS BUT THE DEEPER LESSON MAY BE BY SO QUICKLY BUCKLING TO THE PRESSURE FROM THE WESTERN SENATORS THE ADMINISTRATION UNDERSCORED THAT MR CLINTON IS A PRESIDENT WHO DIDN'T WIN A HUGE PUBLIC MANDATE IN THE ELECTION AND DOESN'T ENJOY A WORKING MAJORITY IN THE SENATE HAVING FEW VOTES TO SPARE IN CONGRESS THE SIGHT OF MR CLINTON DODGING STAMPEDES FROM THE WEST OR THE EAST OR WHEREVER MAY BECOME FAIRLY COMMON 9304070079 930407 CORPORATE FOCUS FIGHT TO OUST ICN CHAIRMAN COMES AT CRITICAL JUNCTURE LEADERSHIP OF YUGOSLAVIA'S EXLEADER IS QUESTIONED AS SUCCESS NEARS ON DRUG BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL COSTA MESA CALIF A SHAREHOLDER FIGHT TO OUST ICN PHARMACEUTICALS INC'S MERCURIAL CHAIRMAN MILAN PANIC COMES AT A CRITICAL MOMENT WHEN THE SMALL DRUG COMPANY MAY BE ON THE VERGE OF ACHIEVING THE SUCCESS THAT HAS LONG ELUDED IT AT ISSUE IS WHETHER MR PANIC BACK FROM A STORMY NINE MONTHS AS YUGOSLAVIAN PRIME MINISTER IS UP TO OVERSEEING ICN AT THIS POTENTIALLY LUCRATIVE TURNING POINT MORE THAN 20 YEARS AFTER ITS DEVELOPMENT ICN'S ONLY PROPRIETARY DRUG RIBAVIRIN SEEMS TO BE A PROMISING TREATMENT FOR HEPATITIS C PART OF WHAT SHAREHOLDERS ARE UPSET ABOUT IS ICN'S RECENT DISCLOSURE THAT MR PANIC WHO PROMISED THE US GOVERNMENT HE WOULDN'T PARTICIPATE IN THE AFFAIRS OF HIS COMPANY WHILE HE WAS YUGOSLAVIA'S HEAD OF STATE RECEIVED HIS 619000 ICN SALARY LAST YEAR SINCE NOVEMBER ICN HAS QUIETLY SOLD SEVEN MILLION SHARES IN PRIVATE PLACEMENTS IN EUROPE AT DISCOUNTED PRICES SWELLING SHARES OUTSTANDING TO 203 MILLION AND DILUTING OWNERSHIP OF EXISTING HOLDERS EVEN AS THE SQUABBLE OVER MR PANIC'S RETURN TO THE COMPANY ESCALATES RIBAVIRIN APPEARS CLOSER THAN EVER BEFORE TO ACHIEVING FOOD AND DRUG ADMINISTRATION APPROVAL THE HOPES ARE BASED ON HUMAN TESTS SHOWING SUCCESS AGAINST HEPATITIS C A SERIOUS LIVER AILMENT ROUGHLY 100 MILLION PEOPLE WORLDWIDE INCLUDING 25 MILLION IN THE US ARE INFECTED WITH THE HEPATITIS C VIRUS ESTIMATES ERIC M HECHT AN ANALYST AT MORGAN STANLEY & CO ALPHA INTERFERON THE ONLY APPROVED TREATMENT SO FAR DOESN'T HELP ALL PATIENTS AND HAS MANY SIDE EFFECTS HE SAID RIBAVIRIN IS PROMISING BECAUSE IT IS WELLTOLERATED AND CAN BE ADMINISTERED ORALLY IN PILL FORM WE THINK THAT RIBAVIRIN HAS A GOOD CHANCE OF BEING APPROVED FOR TREATMENT OF HEPATITIS C AND WILL PARTICIPATE IN A HUGE MARKET BASED ON THE EVIDENCE WE HAVE SEEN IN THE PHASE II CLINICAL TRIALS DONE BY THE NATIONAL INSTITUTES OF HEALTH AND OTHERS SAYS JOHN KAWESKE EXECUTIVE VICE PRESIDENT AT INVESCO TRUST CO WHICH OWNS 13 MILLION ICN SHARES THE COMPANY'S TRACK RECORD ON MOVING RIBAVIRIN INTO THE US MARKET MAKES SOME INDUSTRY ANALYSTS RELUCTANT TO BE PUBLICLY IDENTIFIED AS SHARING MR KAWESKE'S OPTIMISM PRIVATELY HOWEVER THESE ANALYSTS TEND TO AGREE THAT ICN'S PROSPECTS ARE BRIGHTENING WHAT'S HOLDING SOME INVESTORS' ATTENTION RIGHT NOW THOUGH IS THE LEADERSHIP QUESTION SHAREHOLDER RAFI M KHAN STARTED A FIGHT LAST WEEK TO OUST THE 63YEAROLD MR PANIC WHO HAS HEADED ICN FOR MORE THAN THREE DECADES CLAIMING THAT THERE SHOULD BE A MANAGEMENT CHANGE BECAUSE OF ICN'S POOR OPERATING PERFORMANCE AND BECAUSE OF EXCESSIVE COMPENSATION PAID TO MR PANIC THE COMPANY FILED A SUIT MONDAY IN A NEW YORK FEDERAL COURT ALLEGING THAT MR KHAN IS MAKING ILLEGAL USE OF INSIDE INFORMATION ACQUIRED AT HIS FORMER STOCK BROKERAGE JOB MR KHAN AND OTHER SHAREHOLDERS SAY ALL THE DISCLOSURES ABOUT MR PANIC'S PAY AND THE STOCK SALES IN EUROPEESPECIALLY IN VIEW OF MR PANIC'S PAST SKIRMISHES WITH THE FDAMAKE HIM A POOR CHOICE TO LEAD THE CRITICAL EFFORT TO WIN US APPROVAL FOR RIBAVIRIN MR PANIC PRONOUNCED PAHNITCH DECLINES TO BE INTERVIEWED CITING THE LITIGATION BUT ICN SAYS PROCEEDS FROM THE STOCK SALES WERE USED TO REDUCE DEBT AMONG OTHER LEGITIMATE PURPOSES AND BIRCH E BAYH JR AN ICN DIRECTOR AND FORMER INDIANA SENATOR DEFENDS MR PANIC'S 1992 SALARY AS A DARN GOOD INVESTMENT OF THE STOCKHOLDERS' MONEY IN HIS DARING ATTEMPT TO STOP A WAR THAT'S HURT COMPANY INTERESTS IN YUGOSLAVIA THE FDA HAS EXPRESSED COMPLETE SATISFACTION WITH THE WAY THE HEPATITIS C TRIALS HAVE BEEN CONDUCTED AND THERE HAS BEEN THE DEVELOPMENT OF A CLOSE COOPERATIVE RELATIONSHIP WITH MUTUAL RESPECT AMONG THE PARTIES SAYS MR BAYH ICN HOPES TO SUBMIT AN APPLICATION TO MARKET RIBAVIRIN FOR HEPATITIS C EARLY NEXT YEAR FINDING A BIG MARKET WOULD BE A REMARKABLE REVERSAL FOR THE DRUG WHICH HAS IGNITED PERIODIC SURGES IN ICN'S STOCK PRICE OVER THE YEARS SINCE RIBAVIRIN'S DEVELOPMENT IN 1970 ICN HAS PROMOTED IT AS A TREATMENT FOR DISEASES FROM HERPES TO AIDS BUT HAS RECEIVED APPROVAL TO SELL IT IN THE US ONLY FOR A LUNG AILMENT IN INFANTS THE DRUG IS AUTHORIZED FOR SALE IN MORE THAN 40 OTHER COUNTRIES FOR A NUMBER OF VIRAL CONDITIONS RIDING THE LATEST HOPES ICN'S SHARE PRICE NEARLY DOUBLED IN THE FIRST QUARTER TO 1275 THE THIRDBEST PERFORMANCE ON THE NEW YORK STOCK EXCHANGE THE RISE CAME DESPITE INTERNATIONAL ECONOMIC SANCTIONS THAT HAVE CRIPPLED THE COMPANY'S YUGOSLAV OPERATIONS AND A 73 MILLION FIRSTQUARTER WRITEOFF AT ITS 88OWNED BIOMEDICALS SUBSIDIARY LATE LAST WEEK ICN REPORTED A NET LOSS OF 649 MILLION OR 403 A SHARE FOR THE FOURTH QUARTER ICN SHARES CLOSED YESTERDAY AT 1150 DOWN 125 CENTS ON THE NEW YORK STOCK EXCHANGE THE SHARES TRADED AS LOW AS 250 IN 1990 THREE YEARS AFTER A COMPANY RUNIN WITH THE FDA SQUASHED HOPES THAT THE AGENCY WOULD AUTHORIZE RIBAVIRIN'S SALE FOR TREATMENT OF PATIENTS INFECTED WITH THE AIDS VIRUS IN 1991 ICN AND MR PANIC CONSENTED WITHOUT ADMITTING OR DENYING WRONGDOING TO SECURITIES AND EXCHANGE COMMISSION CHARGES THAT THEY MADE FALSE STATEMENTS ABOUT THE DRUG'S EFFECTIVENESS AGAINST PREAIDS CONDITIONS MR PANIC'S CRITICS SAY HE BUNGLED THE COMMERCIAL DEVELOPMENT OF RIBAVIRIN WHILE REAPING GENEROUS STOCK OPTIONS THAT HE HAS CASHED IN OVER THE YEARS IF RIBAVIRIN WERE IN MERCK'S HANDS IT WOULD BE GENERATING AT LEAST 1 BILLION OF SALES NOW ASSERTS EUGENE MELNITCHENKO AN ANALYST AT LEGG MASON WOOD WALKER INC A BROKERAGE FIRM IN BALTIMORE MILAN'S GREED IS OBNOXIOUS AND THE OTHER ICN DIRECTORS ARE SPINELESS LACKEY YES MEN FUMES MR KHAN WHO HAS INVESTED NEARLY 2 MILLION OF HIS OWN MONEY IN ICN STOCK MR BAYH THE ICN DIRECTOR SAYS MR PANIC'S COMPENSATION IS IN LINE WITH WHAT HEADS OF COMPARABLE DRUG COMPANIES ARE PAID AND WHILE MR PANIC IS A STRONG PERSONALITY THE BOARD DOESN'T HESITATE TO ASK PENETRATING QUESTIONS THE 42YEAROLD PAKISTANIBORN MR KHAN WHO EMIGRATED FROM ENGLAND IN 1987 HAS WORKED AS A LOS ANGELESAREA STOCKBROKER FOR SEVERAL YEARS HE RESIGNED FROM HJ MEYERS TWO WEEKS AGO OVER A DISPUTE INVOLVING ICN AND HAS SINCE JOINED ANOTHER FIRM HE DENIES ICN CHARGES THAT AT HJ MEYERS WHICH RECENTLY SOLD SECURITIES OF AN ICN SUBSIDIARY HE ILLEGALLY ENGAGED IN A CONSPIRACY TO FORM A CABAL FOR THE PURPOSE OF TAKING OVER ICN REMOVING THE BOARD UNDER THE PROCESS MR KHAN HAS INSTITUTED REQUIRES WRITTEN CONSENTS FROM SHAREHOLDERS REPRESENTING A MAJORITY OF OUTSTANDING SHARES A TOUGHER HURDLE THAN A PROXY CONTEST WHICH REQUIRES A MAJORITY OF THE VOTES CAST AT A SHAREHOLDER MEETING MR KHAN WHO SAYS HE'LL BE SHOCKED IF HE FAILS BELIEVES THAT ICN SHARES SOLD IN EUROPE RECENTLY ARE IN THE HANDS OF US INSTITUTIONAL INVESTORS FRIENDLY TO HIM STILL HE HAS MAINTAINED THAT THEY WERE MADE WITHOUT PROPER NOTIFICATION TO SHAREHOLDERS MR PANIC TALKS PEACE AND DEMOCRACY IN YUGOSLAVIA AND PRACTICES DICTATORSHIP IN COSTA MESA CHARGES MR KHAN NOTING THAT SOME ICN EMPLOYEES HAVE TAKEN TO CALLING THE CHAIRMAN YOUR EXCELLENCY AN ICN SPOKESMAN SAYS HE'S ADDRESSED MR PANIC THAT WAY HIMSELF BUT OUT OF RESPECT AND ABSOLUTELY NOT AT MR PANIC'S REQUEST 9304070078 930407 BUSINESS BRIEF ALBANY INTERNATIONAL CORP SUPPLIER FOR PAPER INDUSTRY TO SELL UNIT FOR 33 MILLION ALBANY INTERNATIONAL CORP SAID IT AGREED IN PRINCIPLE TO SELL ITS ENGINEERED SYSTEMS DIVISION TO A UNIT OF THERMO ELECTRON CORP FOR 33 MILLION THE ALBANY INTERNATIONAL UNIT SUPPLIES EQUIPMENT TO PAPER MANUFACTURERS THERMO FIBERTEK INC WHICH PLANS TO BUY THE DIVISION MAKES RECYCLING SYSTEMS AND ACCESSORIES FOR THE INDUSTRY THERMO ELECTRON IS BASED IN WALTHAM MASS ALBANY INTERNATIONAL OF ALBANY NY MAKES FABRICS FOR THE PAPERMAKING PROCESS 9304070076 930407 REGULATORY CHOKEHOLD THE IRS VS THE SELFEMPLOYED BY JAMES BOVARD THE INTERNAL REVENUE SERVICE IS CARRYING OUT A SWEEPING CAMPAIGN TO SLASH THE NUMBER OF AMERICANS PERMITTED TO BE SELFEMPLOYED AND TO PUNISH THE COMPANIES THAT CONTRACT WITH THEM THE IRS'S ATTACK HAS DEVASTATED THOUSANDS OF SMALL BUSINESSES AND IS UNDERMINING HIGHTECH INDUSTRIES THE HEALTHCARE INDUSTRY AND EVEN FREEDOM OF RELIGION IRS OFFICIALS INDICATE THAT MORE THAN HALF THE NATION'S SELFEMPLOYED SHOULD NO LONGER BE ALLOWED TO WORK FOR THEMSELVES THIS CONTROVERSY ORIGINATES IN ARCANE FEDERAL REGULATIONS ON THE PROPER CLASSIFICATION OF WORKERS IF A PERSON IS AN EMPLOYEE THE EMPLOYER MUST WITHHOLD ALL OF THAT PERSON'S PAYROLL TAXES AND REMIT THEM TO THE IRS PAY HALF OF THE EMPLOYEE'S SOCIAL SECURITY TAXES AND ALL OF THE UNEMPLOYMENT INSURANCE TAX BUT IF AN INDIVIDUAL IS AN INDEPENDENT CONTRACTOR A BUSINESS NEED ONLY FILE A FORM 1099 WITH THE IRS REPORTING HOW MUCH IT PAID THAT PERSON AND THE CONTRACTOR PAYS HIS TAXES DIRECTLY TO THE IRS THE IRS HAS LONG SOUGHT TO FORCIBLY REDUCE THE NUMBER OF SELFEMPLOYED AMERICANS AND MAXIMIZE THE NUMBER SUBJECT TO TAX WITHHOLDING THE IRS ENFORCEMENT CAMPAIGN IS TARGETING BUSINESSES WITH LESS THAN 3 MILLION IN ASSETS IN MOST CASES BUSINESSES WITHOUT INHOUSE COUNSEL THAT CANNOT AFFORD A LENGTHY COURT FIGHT THE HOUSE GOVERNMENT OPERATIONS COMMITTEE CONCLUDED IN A REPORT IN NOVEMBER THAT IRS' ENFORCEMENT ACTIVITIES ON INDEPENDENT CONTRACTORS PRESENT SMALL BUSINESS TAXPAYERS WITH A VERITABLE NIGHTMARE OF PROBLEMS AND POLICIES THAT DEFY COMMON SENSE THE IRS BASES ITS CLASSIFICATION DECISIONS PRIMARILY ON A LIST OF 20 QUESTIONS ON THE RELATIONSHIP BETWEEN THE EMPLOYER AND THE CONTRACTOR/EMPLOYEE THESE QUESTIONS ARE DERIVED FROM COMMON LAW PRECEDENTS DATING TO THE MIDDLE AGES AN ASSISTANT US TREASURY SECRETARY ADMITTED IN 1981 THAT THE COMMON LAW EMPLOYMENT TEST WAS DEVELOPED CENTURIES BEFORE THE INCOME TAX TO DETERMINE THE RULES OF THE DOCTRINE THAT THE MASTER IS LIABLE FOR THE TORTS OF HIS SERVANT A 1991 TREASURY DEPARTMENT REPORT CONCEDED THAT THE COMMON LAW TESTS LACK PRECISION AND PREDICTABILITY AND IN MANY CASES DO NOT YIELD CLEAR CONSISTENT OR SATISFACTORY ANSWERS ONCE AN IRS AGENT ANNOUNCES THAT A COMPANY HAS MISCLASSIFIED ITS EMPLOYEES AS HAPPENS IN NINE OF 10 AUDITS THE COMPANY OFTEN FACES A STAGGERING TAX BILL LARGELY BECAUSE THE IRS INTENTIONALLY FORCES BUSINESSES TO DOUBLEPAY TAXES ALREADY PAID BY INDEPENDENT CONTRACTORS THE HOUSE GOVERNMENT OPERATIONS COMMITTEE NOTED THE ASSESSMENTS ARE BASED ON THE USE OF PRESET MANDATORY FORMULAS WHICH EVEN THE IRS ADMITS RESULT IN DOUBLE TAX COLLECTIONS THESE BACK TAX ASSESSMENTS HAVE BEEN RESPONSIBLE FOR PUTTING A NUMBER OF THOSE BUSINESSES OUT OF BUSINESS IRS AGENTS HAVE ASSESSED MORE THAN 500 MILLION IN PENALTIES AND BACK TAXES SINCE 1988 AVERAGING 68000 PER COMPANY AND FORCED BUSINESSES TO RECLASSIFY OVER 400000 INDEPENDENT CONTRACTORS AS EMPLOYEES THE IRS IS NOW CONVERTING ALMOST 2000 INDEPENDENT CONTRACTORS INTO EMPLOYEES EACH WEEK MANY IRS OFFICIALS THREATEN HARSH PENALTIES TO COERCE BUSINESSES TO SIGN AGREEMENTS PROMISING NOT TO USE INDEPENDENT CONTRACTORS IN RETURN FOR A REDUCTION OR WAIVER OF THE TAXES AND PENALTIES SUCH PERPETUAL CEASEANDDESIST ORDERS MAY BE APPROPRIATE WHEN THE GOVERNMENT IS DEALING WITH WIFEBEATERS OR CHILD MOLESTERS BUT THEY ARE BIZARRE WHEN IT IS SEEKING A PRETEXT TO PERMANENTLY CONTROL THE DAYTODAY OPERATION OF SMALL BUSINESSES ONE INDUSTRY THAT IS ESPECIALLY HURT BY THE IRS CRACKDOWN IS HEALTH CARE MARC CATALANO PRESIDENT OF THE PRIVATE CARE ASSOCIATION AN ASSOCIATION OF HEALTHCARE AGENCIES ACCUSED THE IRS OF FOLLOWING A SEARCH AND DESTROY POSTURE WITH RESPECT TO BUSINESSES THAT USE INDEPENDENT CONTRACTORS COMPREHENSIVE CARE CORP WAS HIT IN 1991 WITH AN IRS DEMAND FOR 194 MILLION IN BACK TAXES AND PENALTIES FOR TREATING PSYCHOLOGISTS AND PHYSICIANS AS INDEPENDENT CONTRACTORS JOHN BAILEY A PSYCHOLOGIST AT THE FAMILY THERAPY CENTER OF MADISON WIS COMPLAINED TO A CONGRESSIONAL COMMITTEE LAST AUGUST THAT HIS CLINIC HAS COME UNDER ATTACK THE IRS METHODS HAVE BEEN TOO SUBJECTIVE APPLIED WITH FEROCITY AND ARBITRARINESS AND HAVE CAUSED UNTOLD GRIEF FOR US AND OTHER WELLMEANING SMALL BUSINESSES MR BAILEY REPORTED THAT THE IRS ATTACK HAS THREATENED THE VERY SURVIVAL OF SEVERAL WISCONSIN CLINICS THE IRS TRIED TO PENALIZE SEVERAL PENNSYLVANIA CORPORATIONS FOR PAYING DENTISTS AS INDEPENDENT CONTRACTORS INSTEAD OF EMPLOYEES BUT THE PENNSYLVANIA DENTAL BOARD HAD WARNED THE CORPORATIONS THAT IT WOULD BE ILLEGAL UNDER STATE LAW FOR THE CORPORATIONS TO HIRE DENTISTS AS EMPLOYEES SINCE THE CORPORATIONS THEMSELVES WERE NOT LICENSED TO PRACTICE DENTISTRY A FEDERAL JUDGE THREW OUT THE IRS'S CASE IN 1991 THE IRS IS LAUNCHING A HIGHPROFILE ASSAULT ON THE USE OF INDEPENDENT CONTRACTORS IN HOLLYWOOD THE IRS BEGAN A SIMILAR CRACKDOWN ON THE MINNESOTA FILM INDUSTRY LAST YEAR ONE MINNESOTA FILM PRODUCER COMPLAINED TO A LOCAL MAGAZINE THAT IRS AGENTS WANT ME TO CLASSIFY A LIGHTING TECH WHO WORKS FOR TWO HOURS AND WHO I NEVER SEE AGAIN AS A PARTTIME EMPLOYEE THAT'S ABSURD IN SOME REGIONS IRS OFFICIALS HAVE ORDAINED THAT ALL UNITED METHODIST MINISTERS MUST BE RECLASSIFIED AS EMPLOYEES THE REV ROBERT MCKIBBEN OF ALABAMA INFORMED THE HOUSE WAYS AND MEANS COMMITTEE THAT HE WAS TOLD BY AN IRS EXAMINER THAT ALL MINISTERS ARE STATUTORY EMPLOYEES MR MCKIBBEN INFORMED THE IRS AGENT OF A US TAX COURT DECISION UPHOLDING THE SELFEMPLOYMENT STATUS OF UNITED METHODIST MINISTERS BUT THE IRS OFFICIAL SAID HE WAS NOT BOUND BY THE RULING MR MCKIBBEN OBSERVED THAT THE SYSTEMATIC MISCLASSIFICATION OF MINISTERS RESULTS IN THE IRS DICTATING TO THE CHURCH THE TYPE OF RELATIONSHIP THEY MUST HAVE CRAIG HOSKINS COUNSEL FOR THE CHURCH ESTIMATED THAT MORE THAN 1000 METHODIST CLERGYMEN HAVE FACED IRS AUDITS OVER THEIR EMPLOYMENT STATUS THE IRS HAS NOT YET ATTEMPTED TO IMPOSE PENALTIES ON GOD FOR NOT WITHHOLDING TAXES FROM THE MINISTERS' PAY HIGHTECH INDUSTRIES HAVE PROBABLY BEEN HIT HARDEST BY THE IRS'S CRACKDOWN IN 1978 CONGRESS ENACTED A PROVISION TO PREVENT THE IRS FROM PENALIZING COMPANIES THAT HAD A REASONABLE BASIS FOR CLASSIFYING PEOPLE AS INDEPENDENT CONTRACTORS BUT IN THE 1986 TAX ACT SEN DANIEL PATRICK MOYNIHAN D NY SLIPPED IN AN AMENDMENT SECTION 1706 THAT REVOKED THE REASONABLE BASIS PROTECTION FOR ENGINEERS COMPUTER PROGRAMMERS AND OTHER TECHNICAL SERVICE PROFESSIONALS A 1987 DATA PROCESSING MANAGERS ASSOCIATION SURVEY FOUND THAT 74 OF FIRMS DECREASED THEIR CONTRACTS MADE DIRECTLY WITH INDEPENDENT TECHNICAL SERVICE CONSULTANTS AS A RESULT OF SECTION 1706 REP MAJOR OWENS D NY SAID LAST YEAR THAT MANY AFRICANAMERICAN COMPUTER PROGRAMMERS AND ANALYSTS HAVE HAD THE DOOR TO SELFEMPLOYMENT SLAMMED IN THEIR FACES BECAUSE OF SECTION 1706 IRS AGENTS ARE OFTEN HEAVYHANDED IN HOW THEY CARRY OUT EMPLOYMENT TAX AUDITS IRS OFFICIALS HAVE ENCOURAGED PRIVATE COMPANIES TO SECRETLY BETRAY THEIR COMPETITORS AT A 1990 MEETING IN CALIFORNIA AN IRS AGENT DISTRIBUTED SNITCH SHEETS TO BUSINESS PEOPLE AND ASKED THEM TO MAKE ALLEGATIONS OF ILLEGAL INDEPENDENT CONTRACTOR USE BY OTHER COMPANIES THE IRS AGENT TOLD ATTENDEES TO MAIL THE COMPLETED SNITCH SHEETS TO HIM IN UNMARKED PLAIN ENVELOPES AND PROMISED TO FOLLOW UP ALL LEADS THE IRS ESTIMATES THAT 34 MILLION AMERICANS NOW WORKING AS INDEPENDENT CONTRACTORS SHOULD BE RECLASSIFIED AS EMPLOYEES THE SMALL BUSINESS ADMINISTRATION SAYS THAT THERE ARE ROUGHLY FIVE MILLION INDEPENDENT CONTRACTORS THUS MORE THAN HALF OF ALL THE INDEPENDENT CONTRACTORS IN THE US COULD BE FORCED TO FIND A BOSS THE IRS JUSTIFIES ITS CRACKDOWN BECAUSE SOME OF THE SELFEMPLOYED DODGE TAXES BUT THE TREASURY DEPARTMENT CONCLUDED IN A 1991 REPORT ON TECHNICAL SERVICE WORKERS MISCLASSIFICATION OF EMPLOYEES AS INDEPENDENT CONTRACTORS INCREASES TAX REVENUES AND TENDS TO OFFSET THE REVENUE LOSS FROM UNDERCOMPLIANCE BY SUCH INDIVIDUALS BECAUSE DIRECT COMPENSATION TO INDEPENDENT CONTRACTORS IS SUBSTITUTED FOR TAXFAVORED EMPLOYEE FRINGE BENEFITS THE IRS APPARENTLY BELIEVES THAT PAYROLL TAX WITHHOLDING IS MORE IMPORTANT THAN AMERICANS' FREEDOM OF CONTRACT BEING SELFEMPLOYED AND STARTING ONE'S OWN BUSINESS HAVE LONG BEEN PART OF THE AMERICAN DREAM BUT THE IRS HAS APPARENTLY DECIDED THAT IT CAN NO LONGER AFFORD TO PERMIT OTHERS TO PURSUE THEIR DREAMS MR BOVARD AN INDEPENDENT CONTRACTOR WRITES FREQUENTLY ON PUBLIC POLICY 9304070075 930407 BUSINESS BRIEF LORAL CORP UNIT WINS 90 MILLION PACT TO BUILD INTELSTAT SATELLITE SPACE SYSTEMS/LORAL A UNIT OF LORAL CORP WAS AWARDED A 90 MILLION CONTRACT FROM THE INTERNATIONAL TELECOMMUNICATIONS SATELLITE ORGANIZATION TO PRODUCE A COMMUNICATIONS SATELLITE TO CARRY TELEPHONE AND TELEVISION SIGNALS PRODUCTION OF THE SATELLITE WILL BEGIN IMMEDIATELY AND IT IS SCHEDULED TO BE DELIVERED IN SEPTEMBER 1995 NO FURTHER TERMS WERE DISCLOSED THIS IS THE NINTH SUCH SPACECRAFT IN A SERIES KNOWN AS INTELSTAT VII ORDERED FROM SPACE SYSTEMS/LORAL BY INTELSTAT A NONPROFIT CONSORTIUM OF 125 COUNTRIES THAT OWNS AND OPERATES A GLOBAL SATELLITE SYSTEM THE FIRST INTELSTAT VII SERIES SATELLITE WILL BE LAUNCHED IN OCTOBER LORAL CORP IS A NEW YORKBASED DEFENSE ELECTRONICS COMPANY SPACE SYSTEMS/LORAL IS BASED IN PALO ALTO CALIF 9304070074 930407 GM'S LOSH COUNTERS BEARISH FORECASTS SEES DOMESTIC MARKET REBOUND FOR '93 BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S TOP DOMESTIC MARKETING EXECUTIVE TOOK ISSUE WITH WALL STREET BEARS SAYING GM EXPECTS TO ADD VEHICLES TO ITS PRODUCTION SCHEDULES AND IMPROVE ITS MARKET SHARE THROUGH THE REST OF THIS YEAR J MICHAEL LOSH GM'S VICE PRESIDENT FOR NORTH AMERICAN VEHICLE SALES SERVICE AND MARKETING SAID IN AN INTERVIEW THAT A PLANNED 31 CUT IN SALES OF 1993 MODELS TO RENTAL FLEETS DEPRESSED GM'S MARKET SHARE DURING THE FIRST QUARTER BUT THAT HIT IS ESSENTIALLY BEHIND US MR LOSH SAID WE'RE SEEING THE MARKET STRENGTHEN MR LOSH SAID AS A RESULT MR LOSH SAID HE EXPECTS GM WILL ADD TRUCKS AND CARS TO ITS NORTH AMERICAN PRODUCTION SCHEDULES DURING THE COMING MONTHS SEPARATELY MR LOSH SAID GM EXPECTS TO BROADEN ITS EXPERIMENTS WITH SOCALLED VALUE PRICING FOLLOWING THE LEAD OF ITS OWN SATURN DIVISION GM HAS CUT PRICES AND DEALER MARGINS ON WELLEQUIPPED VERSIONS OF CERTAIN MODELS IN HOPES OF MINIMIZING HAGGLING IN THE SHOWROOMS SOME INDUSTRY ANALYSTS HAVE SAID GM MAY HAVE TO TRIM SECONDQUARTER PRODUCTION PLANS WHICH PRESENTLY CALL FOR BUILDING 1352169 VEHICLES IN THE US AND CANADA UP JUST 28 FROM RELATIVELY WEAK YEARAGO LEVELS MERRILL LYNCH ANALYST HARVEY HEINBACH LOWERED HIS 1993 AND 1994 ESTIMATES FOR GM EARNINGS BASED ON THE NO1 AUTO MAKER'S WEAK MARKET SHARE AND THE LOWERTHANEXPECTED SECONDQUARTER PRODUCTION PLAN IT'S VERY TOUCH AND GO SAID SMITH BARNEY HARRIS UPHAM ANALYST WENDY NEEDHAM WITH CONFLICTING SIGNALS IN THE ECONOMY THERE'S NO WAY TO KNOW WHAT CAR VOLUMES ARE DOING BUT MR LOSH SAID HE EXPECTS GM'S SHARE OF THE US CAR AND TRUCK MARKET WHICH FELL TO 335 FOR THE FIRST QUARTER FROM 348 A YEAR AGO WILL REBOUND AND STABILIZE IN AN IMPROVING MARKET GM'S US TRUCK SALES IN MARCH WERE UP 21 OUTPACING THE OVERALL MARKET AND EXCEEDING GM'S OWN EXPECTATIONS MR LOSH SAID THE STRENGTH IN SALES OF TRUCKS WHICH GENERALLY ARE MORE PROFITABLE THAN CARS HAS LARGELY OFFSET A DEEPERTHANEXPECTED DROP IN GM'S DOMESTIC PASSENGER CAR SALES MR LOSH REITERATED HIS BELIEF THAT GM'S SHARE OF THE US LIGHT VEHICLE MARKET WILL REBOUND DURING THE REST OF THE YEAR AND FINISH 1993 EVEN WITH THE 34 LEVEL ACHIEVED IN 1992 THAT'S STILL WELL BELOW THE 41 LEVEL GM HAD IN 1986 AND THE 35 THE COMPANY HAS TARGETED IN ITS PLANS TO REDUCE EXCESS MANUFACTURING CAPACITY BUT MR LOSH SAID THAT CUTTING SALES TO FLEETS WILL PAY OFF IN IMPROVED PROFITABILITY AND STRONGER RETAIL SALES OF NEW CARS IN THE 1992 MODEL YEAR GM SOLD 800000 CARS TO FLEETS IN THE CURRENT 1993 MODEL YEAR GM PLANS TO SELL ABOUT 550000 VEHICLES TO FLEETS IN THE 19901992 PERIOD GM PUMPED UP FLEET SALES IN A MONEYLOSING EFFORT TO KEEP FACTORIES RUNNING 9304070073 930407 ECONOMY SOME ECONOMISTS WARN THAT INFLATION MAY BE BACK TO HAUNT THE ECONOMY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL THE OLD DRAGON OF INFLATION THOUGHT TO HAVE BEEN SLAIN MAY BE LURKING MANY ECONOMISTS INCLUDING THOSE AT THE FEDERAL RESERVE AREN'T WORRIED YET BUT THERE HAVE BEEN CONFUSING WARNING SIGNS IN RECENT WEEKS CORE INFLATION THE PRICES CONSUMERS PAY FOR GOODS AND SERVICES EXCLUDING FOOD AND ENERGY INCREASED 05 IN BOTH JANUARY AND FEBRUARY HOURLY EARNINGS JUMPED 05 IN MARCH AND ARE RUNNING AT A 4 ANNUAL RATE OF INCREASE FOR THE FIRST THREE MONTHS OF THE YEAR IT'S A FLUKE SAY FEDERAL RESERVE OFFICIALS WHO BELIEVE THAT THE ECONOMY IS TOO SOFT TO SUPPORT A ROUND OF BIG PRICE INCREASES BUT THAT VIEW MAY BE RATTLED TOMORROW AND FRIDAY WHEN THE LABOR DEPARTMENT RELEASES NEW DATA ON MOVEMENT ON THE PRODUCER PRICE AND CONSUMER PRICE INDEXES IN MARCH IF THE NUMBERS SHOW ANOTHER SOLID INCREASE IN PRICES IT COULD INCITE MUCH MORE SERIOUS WORRIES ABOUT INFLATION BUT NOW THAT THE ECONOMY IS SHOWING SIGNS OF FIRMING SOME BUSINESSES ARE TRYING TO PUSH THROUGH PRICE INCREASES HOPING THE MARKET WILL FINALLY BEAR IT INDUSTRY SECTORS ARE TRYING TO RECOUP WHAT THEY GAVE UP IN THE DEPTH OF THE DOWNTURN SAID MARK STEINKRAUSS VICE PRESIDENT OF INVESTOR RELATIONS FOR FRUIT OF THE LOOM INC THE COMPANY RAISED PRICES 5 ON A LINE OF TSHIRTS AT THE START OF THE YEAR PEOPLE ARE BECOMING A LITTLE MORE AGGRESSIVE IN THE PRICING OF THEIR PRODUCTS SAID DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY ONE REASON MANY ECONOMISTS AREN'T WORRIED ABOUT A REBOUND IN INFLATION IS THAT PRICES OFTEN JUMP UP AT THE START OF THE YEAR IN 1990 1991 AND 1992 PRICES INCREASED MORE IN THE FIRST QUARTER THAN IN ANY OF THE OTHER THREE ALSO THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDEX FOUND THAT INFLATION PRESSURES SUBSIDED IN MARCH THAT INDEX IS USUALLY A PRECURSOR FOR WHAT WILL HAPPEN TO CONSUMER PRICES MEANWHILE FED OFFICIALS POINT OUT THAT UNLIKE OTHER PERIODS WHEN INFLATION WAS REVVING UP MONEY GROWTH HAS BEEN SLOW STILL THEY CONCEDE THAT THIS BUSINESS CYCLE HAS BEEN AN UNUSUAL ONE AND THAT THE RELATIONSHIP BETWEEN INFLATION AND OTHER ECONOMIC INDICATORS MAY HAVE SHIFTED THE ONE PLACE PRICING PRESSURES ARE SHOWING UP IS IN THE LUMBER INDUSTRY DIANE CADY HEAD OF INVESTOR RELATIONS FOR PLYGEM INDUSTRIES INC THE WOOD PRODUCTS COMPANY SAID SHE HAS SEEN LUMBER PRICES JUMP 60 IN THE PAST SIX MONTHS LARGELY BECAUSE OF TOUGHER ENVIRONMENTAL RULES MS CADY SAID THAT PLYGEM HASN'T PASSED THE INCREASES ON TO CUSTOMERS THE ECONOMIC RECOVERY IS STILL IN ITS INFANCY AND WE'RE TRYING TO BUILD MARKET SHARE SHE SAID MANY OTHER BUSINESSES SAY THE PRICE INCREASES THEY HAVE SEEN HAVEN'T BEEN VERY LARGE AND EVEN THOUGH HOURLY EARNINGS BOUNCED UP IN MARCH WAGE LEVELS ARE GENERALLY CONTAINED WE'VE CERTAINLY SEEN THE BEST NEWS IN INFLATION ALREADY SAID SANDRA SHABER ANALYST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA BUT THINGS ARE NOT SPIRALING OUT OF CONTROL 9304070072 930407 BUSINESS BRIEF LIFETIME CORP ABBEY HEALTHCARE GROUP'S SWEETENED PLAN IS REJECTED LIFETIME CORP BOSTON SAID THAT THE MOST RECENT LETTER FROM ABBEY HEALTHCARE GROUP INC PROPOSING THE ACQUISITION OF LIFETIME AT A SWEETENED 2750 A SHARE OR 2613 MILLION WAS INADEQUATE LIFETIME ALSO SAID THIS LETTER DIDN'T REPRESENT A FIRM FINANCED OFFER ABBEY'S INITIAL OFFER MADE LAST MONTH WAS FOR 2350 A SHARE IN CASH AND ABBEY STOCK LIFETIME SAID YESTERDAY IT WILL EXPLORE ALTERNATIVES FOR MAXIMIZING THE VALUE FOR SHAREHOLDERS IN THE NEAR TERM INCLUDING ITS POSSIBLE SALE AND OTHER VALUEENHANCING TRANSACTIONS IT SAID THAT IT HAS HIRED GLEACHER & CO AS ITS FINANCIAL ADVISER ABBEY DIDN'T RESPOND TO LIFETIME'S REACTION TIMOTHY AITKEN CHAIRMAN OF ABBEY A COSTA MESA CALIF HOME HEALTHCARE CONCERN COULDN'T BE REACHED FOR COMMENT 9304070071 930407 YOUR MONEY MATTERS RAIDING PENSION MONEY NOW MAY LEAVE YOU WITHOUT PIGGY BANK FOR RETIREMENT BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL SHOULD EMPLOYEES USE PENSION MONEY TO PAY FOR HOUSES CARS COLLEGE TUITION MEDICAL COSTS OR EVEN VACATIONS ALTHOUGH EMPLOYERSPONSORED RETIREMENT PLANS SUCH AS PROFIT SHARING 401K AND 403B PLANS ARE SUPPOSED TO BE FOR LONGTERM INVESTING MANY EMPLOYEES VIEW THIS MONEY AS AN ASSET TO BE TAPPED FOR SHORTTERM NEEDS OR WANTS BUYING A BOAT IS ONE REASON EMPLOYEES GIVE FOR PREMATURELY DIPPING INTO THEIR RETIREMENT NEST EGGS SAYS DAVID VEENEMAN HEAD OF THE INVESTMENT EDUCATION PRACTICE AT HEWITT ASSOCIATES A BENEFITS CONSULTING FIRM IN LINCOLNSHIRE ILL OTHERS FREQUENTLY GIVEN INCLUDE BUYING A CAR AND TAKING A VACATION THERE ARE LITERALLY CASES WHEN THESE PLANS ARE USED AS CHRISTMAS CLUBS HE SAYS INDEED NEARLY A THIRD OF THE RESPONDENTS IN A GALLUP SURVEY RELEASED LAST WEEK BY JOHN HANCOCK FINANCIAL SERVICES SAID THEY MAY USE THE MONEY TO PAY FOR COLLEGE MEDICAL AND OTHER EMERGENCIES PEOPLE OF ALL AGES INDICATED A NEED TO USE THIS MONEY FOR OTHER PURPOSES THAN RETIREMENT THE JOHN HANCOCK MUTUAL LIFE INSURANCE CO UNIT SAID OF THE FINDINGS AS A RESULT IT SAID RETIREMENT PLAN ASSETS SHOULD NOT BE REGARDED SOLELY AS LONGTERM INVESTMENTS FOR A DISTANT FUTURE BUT THE IDEA THAT PEOPLE VIEW COMPANY RETIREMENT PLANS LIKE A PIGGY BANK ALARMS MANY PENSION EXPERTS THEY WORRY THAT IF EMPLOYEES SPEND THE MONEY NOW THEY WON'T HAVE ENOUGH LATER ON USING RETIREMENT ASSETS TO FUND CURRENT CONSUMPTION COULD BE LAYING THE FOUNDATION FOR FUTURE DISASTER SAYS J CARTER BEESE A COMMISSIONER AT THE SECURITIES AND EXCHANGE COMMISSION THEY'RE LEASING A LIFESTYLE THAT WILL TAKE AWAY FROM THEIR STANDARD OF LIVING IN THE FUTURE MOREOVER BENEFITS EXPERTS SAY EVEN PEOPLE WHO DON'T ACTUALLY RAID THEIR RETIREMENT PLANS COULD BE SHORTCHANGING THEMSELVES BY THINKING OF THE PLANS AS SAVINGS ACCOUNTS THAT'S BECAUSE PEOPLE WHO THINK THEY WILL USE THE MONEY IN THE SHORT TERM ARE MORE LIKELY TO LEAVE IT IN CASH OR FIXEDINCOME INVESTMENTS TO PRESERVE THEIR PRINCIPAL AND AVOID THE UPS AND DOWNS OF THE STOCK MARKET THIS VIEW WAS REFLECTED IN THE JOHN HANCOCK SURVEY THE RESEARCH ALSO SUGGESTS THAT FIXEDINCOME FUNDS WITH THEIR SAFETY OF PRINCIPAL MAKE SENSE FOR PARTICIPANTS WHO MIGHT HAVE TO WITHDRAW OR BORROW MONEY FROM THEIR SAVINGS PLAN PRIOR TO RETIREMENT BUT RETIREMENTPLANNING SPECIALISTS SAY THAT ONE OF THE BIGGEST MISTAKES EMPLOYEES CHRONICALLY MAKE IS KEEPING MOST OF THEIR MONEY IN LOWRETURN FIXEDINCOME INVESTMENTS SUCH AS MONEYMARKET AND FIXEDINCOME ACCOUNTS RATHER THAN IN HIGHERRETURN STOCKS AND STOCK FUNDS VOLUMES OF INVESTMENT RESEARCH SHOWS THAT OVER THE LONG HAUL STOCKMARKET INVESTMENTS GIVE PEOPLE THE BEST CHANCE OF PROTECTING THEIR MONEY FROM THE RAVAGES OF INFLATION AND MAKING IT GROW I SPEND MY LIFE IN THE TRENCHES TRYING TO CONVINCE EMPLOYEES TO BE INVESTORS NOT SAVERS MR VEENEMAN SAYS THESE ARE RETIREMENT PLANS NOT EMERGENCY FUNDS YET MOST FIRMS THAT SET UP AND RUN THESE RETIREMENT PLANS SAY THAT EMPLOYEES NEED TO BE ABLE TO USE THIS MONEY IF THEY ARE LAID OFF OR FACE OTHER FINANCIAL CRISES FIXED INCOME HAS A PLACE AND FILLS A NEED SAYS JOSEPH LORUSSO A SECOND VICE PRESIDENT OF DEFINED CONTRIBUTION PRODUCTS AND SERVICES AT JOHN HANCOCK FINANCIAL SERVICES HE SAYS THAT YOUNGER EMPLOYEES MIGHT NEED THE MONEY EARLY FOR COLLEGE AND THAT OLDER EMPLOYEES MIGHT NEED IT FOR MEDICAL EMERGENCIES HE NOTES HOWEVER THAT PEOPLE OFTEN OVERWEIGH THEIR ASSETS IN FIXEDINCOME INVESTMENTS THEY MAY BE 100 IN FIXED INCOME HE SAYS NOR DO ALL PLAN SPONSORS DISCOURAGE EMPLOYEES FROM VIEWING THEIR RETIREMENT PLANS AS SAVINGS ACCOUNTS IF PEOPLE BELIEVE THEY COULD USE THESE PLANS TO SAVE FOR OTHER PURPOSES OUR RESEARCH SAYS THEY WOULD SAVE MORE SAYS WILLIAM HENKEL A VICE PRESIDENT IN MERRILL LYNCH & CO'S POLICY PLANNING GROUP IT TENDS TO BUILD MOMENTUM WHILE COMPANIES THAT SET UP RETIREMENT PLANS DON'T WANT EMPLOYEES TO TAKE THE MONEY OUT EARLY THEY SAY EMPLOYEES WOULDN'T PUT MONEY INTO THE PLANS IF IT WERE LOCKED UP FOR RETIREMENT INDEED THE JOHN HANCOCK SURVEY SAID THAT THE ABILITY TO USE THE MONEY IN THESE PLANS FOR PURPOSES OTHER THAN RETIREMENT AFFECTS PARTICIPATION AND SAVINGS RATES MORE THAN 35 WHO SAID THEY MAY USE THE MONEY IN THEIR PLANS FOR COLLEGE HOME BUYING OR OTHER PRERETIREMENT PURPOSES SAID THEY WOULD STOP OR REDUCE CONTRIBUTIONS IF THEY COULDN'T USE THIS MONEY FOR NONRETIREMENT PURPOSES THERE IS A PARTIAL SOLUTION TO THIS DILEMMA MANY PLANS ALLOW EMPLOYEES TO BORROW UP TO HALF OF THE ASSETS IN THEIR PLAN AND PAY THEMSELVES BACK PLUS INTEREST THE DOWNSIDE TO LOANS CRITICS SAY IS THAT THEY INCREASE ADMINISTRATIVE COSTS AND REINFORCE THE NOTION THAT THESE ARE SAVINGS PLANS AND IT ISN'T CLEAR YET WHETHER EMPLOYEES ARE VERY SUCCESSFUL AT PAYING THE LOANS BACK SAYS KAREN FERGUSON DIRECTOR OF THE PENSION RIGHTS CENTER IN WASHINGTON STILL EVERYONE AGREES THAT LOANS ARE FAR BETTER THAN WITHDRAWALS EMPLOYEES WHO TAKE MONEY OUT OR WHO CASH OUT THEIR PLAN WHEN THEY CHANGE JOBS OR GET LAID OFF MUST PAY INCOME TAXES PLUS A 10 PENALTY IN MOST CASES IT'S GRUESOME IF YOU WITHDRAW THE MONEY SAYS JOHN KIMPEL VICE PRESIDENT AND PENSION COUNSEL FOR FIDELITY INVESTMENTS YOU END UP WITH HALF THE MONEY HE SAYS DESPITE THESE PENALTIES HE SAYS AN INCREASING NUMBER OF PEOPLE ARE TAKING THE MONEY OUT ALTHOUGH THE POROUSNESS OF THESE PLANS COULD RESULT IN A RETIREMENT CRISIS DOWN THE ROAD THE LEGISLATIVE TREND IS TOWARD MAKING IT EVEN EASIER TO PULL MONEY OUT EARLY LAST FALL A BILL THAT PASSED THE HOUSE AND SENATE CALLED FOR THE ELIMINATION OF WITHDRAWAL PENALTIES FROM RETIREMENT ASSETS IF EMPLOYEES USED THE MONEY TO PAY FOR COLLEGE MEDICAL COSTS A HOME REMODELING COSTS RESULTING FROM HURRICANE DAMAGE THE PURCHASE OF A US AUTO OR IF UNEMPLOYED WHILE THAT BILL DIED THE ISSUE IS LIKELY TO BE RAISED AGAIN THIS YEAR EMPLOYEES WANT IT POLITICIANS KNOW IT IS POPULAR WITH CONSTITUENTS AND FINANCIAL FIRMS FAVOR LOOSENING RESTRICTIONS ON THE MONEY SINCE THIS MAKES THE PLANS MORE ATTRACTIVE TO EMPLOYEES BALANCING THIS IN THE SHORTTERM WILL BE BUDGET AND POLICY CONSIDERATIONS WHY DO WE HAVE THE TAX BREAKS IF THEY AREN'T BEING USED FOR RETIREMENT ASKS MS FERGUSON OF THE PENSION RIGHTS CENTER 9304070070 930407 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO FIRM TO SPEND 23 MILLION TO EXPAND KANSAS FACILITY GOODYEAR TIRE & RUBBER CO CITING RISING DEMAND SAID IT WILL SPEND 23 MILLION TO BOOST PRODUCTION AT ITS TOPEKA KAN LIGHTTRUCK AND MEDIUMTRUCK TIRE PLANT THE PROJECT COMBINED WITH AN 11 MILLION EXPANSION ALREADY ANNOUNCED WILL INCREASE PRODUCTION 35 WHEN COMPLETED NEXT YEAR GOODYEAR AKRON OHIO DECLINED TO DISCLOSE CURRENT PRODUCTION BUT INDUSTRY SOURCES PUT THE NUMBER AT 8000 TIRES A DAY THE EXPANSION WILL CREATE 140 JOBS AT THE PLANT WHICH CURRENTLY EMPLOYS 1950 GOODYEAR EXPECTS THE MARKET FOR LIGHTTRUCK AND MEDIUMTRUCK TIRES TO GROW AT LEAST 9 FROM 1992 TO 1995 9304070069 930407 ECONOMY BIG FIRMS FEAR BLIZZARD OF PAPERWORK FROM A TAX CRACKDOWN ON SMALLER FRY BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL ALUMINUM CO OF AMERICA PRODUCES TONS OF METAL EVERY YEAR BUT COMPANY OFFICIALS WORRY THAT UNDER A CLINTON ADMINISTRATION TAX PROPOSAL THEY'LL SOON BE CHURNING OUT NEARLY AS MUCH PAPER BURIED WITHIN THE PRESIDENT'S ECONOMIC PLAN IS AN INITIATIVE DESIGNED TO CLAMP DOWN ON SMALL CORPORATIONS WHICH UNDERREPORT THEIR INCOME TO THE INTERNAL REVENUE SERVICE BY AS MUCH AS 45 BILLION A YEAR BUT ACCORDING TO OFFICIALS AT BIG COMPANIES LIKE ALCOA THE REAL BURDEN OF THE CLINTON PROPOSAL WOULD FALL ON THEM CURRENTLY ANY COMPANY THAT PAYS MORE THAN 600 ANNUALLY FOR SERVICES MUST SEND THE SERVICE PROVIDER A 1099 FORM SHOWING THE AMOUNT PAID A COPY OF COURSE GOES TO THE IRS BUT THERE IS A GAPING EXCEPTION TO THIS PAPER TRAIL AS A RESULT OF A TAX LAW ON THE BOOKS SINCE 1918 NO 1099S ARE REQUIRED FOR SERVICE PROVIDERS THAT ARE STRUCTURED AS CORPORATIONS THE CLINTON PLAN WOULD REQUIRE 1099S FOR ALL SERVICE PROVIDERS INCORPORATED ENTITIES INCLUDED BY DOING SO THE ADMINISTRATION HOPES TO CATCH COMPANIES THAT ARE GROSSLY UNDERREPORTING THEIR INCOME IN ADDITION OFFICIALS SAY THE EXISTING EXEMPTION TEMPTS MANY SERVICE COMPANIES THAT AREN'T STRUCTURED AS CORPORATIONS TO MISREPRESENT THEMSELVES TO DUCK THE IRS EVEN BEFORE THE CLINTON ADMINISTRATION SHOWED UP THE IRS WAS EDGING TOWARD A SIMILAR PLAN WHAT WE'RE TRYING TO DO HERE IS CLOSE A LOOPHOLE SAYS JOHN DEVLIN EXECUTIVE DIRECTOR OF THE IRS'S INFORMATION REPORTING PROGRAM BIG COMPANIES SAY THE PROPOSED SOLUTION COULD BE WORSE THAN THE PROBLEM ALCOA FOR INSTANCE FIGURES THE CHANGE WOULD FORCE IT TO SEND OUT ABOUT 35000 FORMS UP FROM JUST 3000 NOW IT'S JUST SO SYMPTOMATIC OF A BUREAUCRATIC EFFORT THAT WILL COST MORE THAN THE VALUE IT MIGHT REALLY ADD SAYS LINDA BURKE THE COMPANY'S TAX COUNSEL AN ESTIMATE BY THE CONGRESSIONAL JOINT TAX COMMITTEE SUGGESTS THIS COULD WELL BE TRUE WHILE THE CLINTON ADMINISTRATION IS COUNTING ON THE PROVISION TO BRING IN MORE THAN 6 BILLION OVER FIVE YEARS THE TAX COMMITTEE PUTS THE AMOUNT AT A MERE 326 MILLION OVER THE SAME PERIOD ALCOA ISN'T THE ONLY ONE TO GRIPE IT DOESN'T DO US ANY GOOD OR THEM ANY GOOD TO DROWN EVERYBODY IN PAPER SAYS RALPH WEILAND THE DIRECTOR OF DOMESTIC TAXES FOR ABBOTT LABORATORIES AND THE INCOMING PRESIDENT OF THE TAX EXECUTIVES INSTITUTE A WASHINGTON GROUP THAT IS TALKING WITH THE TREASURY ABOUT LIMITING THE SWEEP OF THE PROPOSAL IT'LL JUST OPEN UP THE FLOODGATES TO PAPERWORK ADDS SANDY NAVIN DIRECTOR OF TAXES FOR GENERAL MILLS INC THE EXTENT OF THE OPPOSITION HAS SURPRISED CLINTON ADVISERS THEY FIGURED THAT BECAUSE COMPANIES ALREADY HAVE SYSTEMS TO SEND OUT 1099 FORMS FOR NONCORPORATE SERVICE PROVIDERS THEY COULD SIMPLY BUILD ON THOSE TO COMPLY WITH THE NEW LAW BUT COMPANIES SAY THAT THE CLINTON PLAN WOULD OVERWHELM THE EXISTING SYSTEMS FOR EXAMPLE HALLIBURTON CO SAYS THAT UNDER ITS PRESENT ACCOUNTING PROGRAM IT CAN DISTINGUISH BETWEEN SERVICE PROVIDERS THAT ARE SUPPOSED TO RECEIVE 1099S AND GOODS SUPPLIERS WHICH AREN'T HOWEVER THE ONLY REASON THE OILFIELD EQUIPMENT COMPANY CAN HANDLE THAT CHORE IS BECAUSE IT PRESENTLY PROVIDES 1099S FOR JUST 2000 VENDORS IF THE CLINTON PLAN BECAME LAW THAT WOULD SWELL TO AT LEAST 20000 WE'D HAVE TO MAKE A MAJOR CHANGE TO OUR SYSTEM SAYS BOB ADAMS HALLIBURTON'S TAX COUNSEL IT COULD BE VERY EXPENSIVE ONE WAY COMPANIES COULD GET AROUND THE SIFTING PROBLEM IS TO FILE 1099S FOR EVERYBODY GOODSSUPPLIERS AND SERVICEPROVIDERS ALIKE BUT THAT WOULD BRING AN ADDED COST THAT COMPANIES SAY THEY SHOULDN'T HAVE TO INCUR ANOTHER COMPLAINT IS THAT THE CLINTON PLAN WOULD PUSH SOME SMALLER COMPANIES THAT SEND OUT FEWER THAN 250 FORMS OVER THAT THRESHOLD REQUIRING THEM TO SEND COPIES TO THE IRS ON MAGNETIC TAPE THE COST OF THAT COULD BE JUST A NIGHTMARE SAYS DJ GRIBBIN A TAX LOBBYIST WITH THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH REPRESENTS HUNDREDS OF THOUSANDS OF SMALLER CONCERNS THE ONE EXCEPTION TO THE CURRENT RULES IS THAT HEALTHCARE SERVICE PROVIDERS RECEIVE 1099S EVEN IF THEY ARE CORPORATIONS INDUSTRY OFFICIALS COMPLAIN OF HEADACHES FOR INSTANCE UNIVERSAL HEALTH SERVICES INC OPERATES UNDER DIFFERENT NAMES IN DIFFERENT LOCATIONS THAT OFTEN LEADS TO A MISMATCH ON ITS 1099S WHICH AUTOMATICALLY TRIGGERS AS MANY AS 700 IRS NOTICES EACH YEAR ASKING FOR AN EXPLANATION WE HAVE TO WRITE BACK TO THE IRS ON EACH ONE SAYS JOYCE LUNNEY ASSISTANT VICE PRESIDENT FOR TAXATION AT THE HOSPITAL CHAIN WHICH OPERATES 28 FACILITIES IN 10 STATES SAYS ALCOA'S MS BURKE THE CLINTON PLAN WOULD BE A TERRIBLE BURDEN ON ALL OF CORPORATE AMERICA JUST TO COERCE A GROUP OF SMALL CORPORATIONS TO PROPERLY REPORT 9304070068 930407 BUSINESS BRIEF SEMICONDUCTOR PACKAGING MATERIALS FIRM POSTS NARROWED LOSS FOR THE FOURTH QUARTER SEMICONDUCTOR PACKAGING MATERIALS CO REPORTED A NARROWER FOURTHQUARTER LOSS DESPITE THE WRITE OFF OF ITS INVESTMENT IN A STARTUP COMPANY THE MAKER OF CUSTOM METAL RIBBON AND WIRE FOR ELECTRONICS IN MAMARONECK NY REPORTED A LOSS OF 471394 OR 20 CENTS A SHARE COMPARED WITH A LOSS OF 634589 OR 38 CENTS A SHARE IN THE 1991 QUARTER REVENUE ROSE TO 18 MILLION FROM 16 MILLION IT SAID IT WROTE OFF ITS 33500 INVESTMENT IN PERMATRONICS WHICH MADE SILVER POWDERS FLAKES PASTES AND INKS BECAUSE ITS PARTNER IN THE VENTURE IS UNABLE TO FUND ITS SHARE OF PERMATRONICS FUTURE CAPITAL NEEDS TOTAL CHARGES RELATED TO THE VENTURE INCLUDING THE COST OF ORGANIZING THE PARTNERSHIP AND OTHER EXPENSES TOTALED 479000 SEMICONDUCTOR PACKAGING SHARES ROSE 30 YESTERDAY TO CLOSE AT 2125 A SHARE UP 50 CENTS IN AMERICAN STOCK EXCHANGE TRADING 9304070067 930407 CHEVRON FORMS JOINT VENTURE TO DEVELOP TWO VAST OIL DISCOVERIES IN KAZAKHSTAN BY PAULINE YOSHIHASHI AND NATALIA A FEDUSCHAK STAFF REPORTERS OF THE WALL STREET JOURNAL CHEVRON CORP AND THE REPUBLIC OF KAZAKHSTAN SIGNED DOCUMENTS FORMING A JOINT VENTURE TO DEVELOP THE HUGE TENGIZ AND KOROLEV OIL FIELDS IN WHICH THE PARTNERS ARE EXPECTED TO INVEST SOME 20 BILLION OVER THE NEXT 40 YEARS THE 5050 JOINT VENTURE WILL DEVELOP ONE OF THE BIGGEST OIL FIELD DISCOVERIES OF THE PAST TWO DECADES AND COULD WELL BE ONE OF THE MOST IMPORTANT DEVELOPMENTS IN CHEVRON'S HISTORY THE SAN FRANCISCO OIL COMPANY WILL COLLECT 20 OF THE PROJECT'S INCOME WITH KAZAKHSTAN COLLECTING THE REMAINING 80 IN KAZAKHSTAN'S CAPITAL CHEVRON'S CHAIRMAN AND CHIEF EXECUTIVE KENNETH DERR AND KAZAKHSTAN PRESIDENT NURSULTAN NAZARBAYEV YESTERDAY SIGNED THE MEMORANDUM MARKING ONE OF THE LARGEST VENTURES EVER BY A US CORPORATION AND A FORMER SOVIET REPUBLIC THE AGREEMENT IS A MILESTONE FOR BOTH PARTNERS THE PARTNERSHIP WILL DOUBLE CHEVRON'S WORLDWIDE OIL RESERVES FROM THREE BILLION BARRELS AT THE END OF 1992 THE AGREEMENT ALSO IS A VOTE OF CONFIDENCE FOR OILRICH BUT CASHPOOR KAZAKHSTAN PROVING THAT IT CAN WORK WITH FOREIGN COMPANIES TO PROVIDE LUCRATIVE TERMS FOR INVESTMENT THE JOINT VENTURE CALLED TENGIZCHEVROIL IS BETWEEN CHEVRON OVERSEAS PETROLEUM INC AND THE KAZAKH PRODUCTION ASSOCIATION TENGIZNEFTEGAZ THE TENGIZ AND KOROLEV FIELDS ARE IN WESTERN KAZAKHSTAN WHERE THE PARTNERS WILL EXPLORE FOR OIL IN A 1560SQUAREMILE AREA TENGIZCHEVROIL IS EXPECTED TO RECOVER SIX BILLION TO NINE BILLION BARRELS OF OIL OVER THE LIFE OF THE PROJECT IN THE TENGIZ FIELD WHICH HAS ESTIMATED RESERVES OF SIX BILLION TO 20 BILLION BARRELS OF OIL DISCOVERED IN 1979 TENGIZ IS SAID TO BE TWICE THE SIZE OF ALASKA'S PRUDHOE BAY A BIG PRODUCING FIELD THE TENGIZ AND KOROLEV RESERVOIRS TOGETHER ALSO HOLD TENS OF TRILLIONS OF CUBIC METERS OF NATURAL GAS WHICH THE PARTNERS ALSO WILL EXPORT THE VENTURE WILL EMPLOY ABOUT 3600 PEOPLE INITIALLY MORE THAN 90 OF WHOM WILL BE FROM KAZAKHSTAN AND THE PARTNERS WILL SPEND ABOUT 15 BILLION TO 18 BILLION FOR DEVELOPMENT OVER THE NEXT THREE TO FIVE YEARS THE SIGNING CAPS MORE THAN FIVE YEARS OF DELICATE NEGOTIATIONS BY CHEVRON ITS INTEREST IN TENGIZ BEGAN IN 1987 WHEN THE SOVIET UNION STILL EXISTED AND MIKHAIL GORBACHEV WAS IN CHARGE AS A MEMBER OF A US TRADE CONSORTIUM CHEVRON BEGAN TO LOOK FOR INVESTMENT OPPORTUNITIES IN THE SOVIET UNION AND QUICKLY ZEROED IN ON THE OIL FIELDS OF WESTERN KAZAKHSTAN CHEVRON HAD THE FORESIGHT TO INCLUDE THE KAZAKHS IN ITS NEGOTIATIONS WITH MOSCOW SO WHEN THE SOVIET UNION COLLAPSED THE TALKS CONTINUED WITH A NEW SET OF PARTNERS A PRELIMINARY AGREEMENT WAS SIGNED LAST MAY LAYING OUT OBLIGATIONS AND OUTSTANDING ISSUES THE ORIGINAL STARTUP DATE FOR THE VENTURE JAN 1 WAS CHANGED TO APRIL BECAUSE SUCH ISSUES AS TAXATION WEREN'T RESOLVED AS QUICKLY AS EXPECTED OTHER IMPORTANT ISSUES SUCH AS TRANSPORTATION STILL MUST BE ADDRESSED DAVID O'REILLY CHEVRON'S VICE PRESIDENT FOR STRATEGIC PLANNING SAID THE COMPANY IS CONSIDERING SEVERAL PROPOSALS FOR TRANSPORTING THE OIL INCLUDING PARTICIPATION IN AN OMANLED PIPELINE CONSORTIUM CHEVRON'S STOCK ROSE 1 TODAY TO CLOSE AT 8450 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9304070066 930407 BUSINESS BRIEF GENERAL ELECTRIC CO FINANCIAL SERVICES DIVISION TO PURCHASE TRAILER FIRM GENERAL ELECTRIC CAPITAL CORP AGREED TO BUY TIP EUROPE PLC FOR 71 MILLION 108 MILLION GE CAPITAL IS OFFERING 42 PENCE FOR EACH TIP ORDINARY SHARE AMONG GE CAPITAL'S OPERATIONS IS A TRANSPORT RENTING AND LEASING BUSINESS TIP EUROPE IS A GROUP OF TRAILER RENTAL AND LEASING BUSINESSES TIP'S BOARD IS RECOMMENDING THAT SHAREHOLDERS ACCEPT THE OFFER HAL INVESTMENTS UK LTD WHICH HOLDS A 99 STAKE IN TIP HAS AGREED TO ACCEPT THE GE CAPITAL OFFER IN THE ABSENCE OF A HIGHER OFFER ONCE IT BECOMES UNCONDITIONAL GE CAPITAL A FINANCIAL SERVICES COMPANY IS A WHOLLY OWNED SUBSIDIARY OF GENERAL ELECTRIC CO FAIRFIELD CONN 9304070065 930407 BUSINESS BRIEF VIDEOTELECOM CORP MAKER OF VIDEO EQUIPMENT TO REPORT LOSS OF 2 MILLION VIDEOTELECOM CORP SAID IT EXPECTS TO REPORT A LOSS OF 2 MILLION OR 21 CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED MARCH 31 WIDER THAN IT HAD PROJECTED THE AUSTIN TEXAS MAKER OF VIDEO TELECONFERENCING EQUIPMENT SAID IN FEBRUARY THAT TIGHTER PROFIT MARGINS AND SLOWING ORDERS WOULD LEAD TO A LOSS OF 700000 TO 12 MILLION FOR THE FIRST QUARTER COMPARED WITH YEAREARLIER NET INCOME OF 204000 THE COMPANY ALSO ANNOUNCED THAT REVENUE FOR THE QUARTER WAS 5 MILLION IT HAD PREDICTED THAT REVENUE WOULD RISE 10 TO 20 FROM 57 MILLION A YEAR AGO IN OVERTHECOUNTER TRADING YESTERDAY VIDEOTELECOM CLOSED AT 4875 DOWN 125 CENTS 9304070064 930407 TECHNOLOGY BRIEF UNISYS CORP FIRM REVAMPS MAJOR FAMILY OF MAINFRAME COMPUTERS UNISYS CORP REVAMPED ONE OF ITS TWO MAJOR FAMILIES OF MAINFRAME COMPUTERS IN PART BY ADDING ENTRYLEVEL MODELS THAT CAN RUN SOFTWARE DESIGNED FOR PERSONAL COMPUTERS AND WORKSTATIONS UNLIKE SOME RIVAL MAINFRAME MAKERS UNISYS IS PICKING UP REVENUE IN THE MARKET FOR THESE BIG MACHINES UNISYS OFFICIALS SAID THEIR COMPANY'S A SERIES FAMILY WILL SHOW A SALES GAIN FOR THE FIRST QUARTER THE BLUE BELL PA COMPANY DECLINED TO GIVE PROJECTIONS FOR THE REST OF ITS BUSINESS UNISYS' NEW MACHINES INCLUDED THE ENTRYLEVEL A7 WHICH STARTS AT 20000 AND INCLUDES AN INTEL CORP MICROPROCESSOR AS WELL AS NORMAL MAINFRAME CHIPS THAT ALLOWS THE A7 TO RUN PC AND WORKSTATION SOFTWARE ADDING A NEW TWIST TO UNISYS' EFFORTS TO MAKE ITS MAINFRAMES WORK BETTER WITH SMALLER MACHINES UNISYS ALSO ADDED NEW MODELS OF ITS MIDLEVEL A11 MACHINE AND THE MOREPOWERFUL A16 9304070063 930407 BENTSEN OPPOSES FASB ON REPORTING STOCK OPTIONS WASHINGTON TREASURY SECRETARY LLOYD BENTSEN LINED UP WITH BIG CORPORATIONS IN OPPOSITION TO A PROPOSAL TO FORCE COMPANIES TO DEDUCT THE VALUE OF EXECUTIVES' STOCK OPTIONS FROM CORPORATE PROFITS I HAVE RESERVATIONS ABOUT THE PROPOSAL UNDER CONSIDERATION WHICH WOULD REQUIRE COMPANIES TO TAKE A HIGHLY DEBATABLE CHARGE TO EARNINGS WHEN GRANTING STOCK OPTIONS MR BENTSEN SAID IN AN APRIL 2 LETTER TO THE FINANCIAL ACCOUNTING STANDARDS BOARD THE FASB WHICH SETS ACCOUNTING STANDARDS IS TO VOTE ON THE PROPOSAL TODAY THE BUSINESS ROUNDTABLE A GROUP OF CHIEF EXECUTIVES FROM 200 MAJOR CORPORATIONS IS FIGHTING THE FASB PLAN MR BENTSEN INDICATED THAT HE PREFERS AN ALTERNATIVE PROPOSAL BACKED BY THE BUSINESS ROUNDTABLE AS WELL AS SEVERAL LARGE ACCOUNTING FIRMS AND INSTITUTIONAL INVESTORS THAT AS HE PUT IT WOULD STRESS FULL DISCLOSURE WITHOUT CHANGING CURRENT ACCOUNTING RULES CURRENTLY COMPANIES DON'T HAVE TO REFLECT THE VALUE OF STOCK OPTIONS AND SIMILAR COMPENSATION IN THEIR REPORTED EARNINGS PRESIDENT CLINTON HAS PROPOSED TO PREVENT COMPANIES FROM DEDUCTING MORE THAN 1 MILLION IN COMPENSATION TO THEIR EXECUTIVES BUT THE LIMIT EXCLUDES COMPENSATION PAYMENTS THAT ARE LINKED TO PRODUCTIVITY A PHRASE THAT APPEARS TO REFER TO STOCK OPTIONS AND SIMILAR PLANS DETAILS OF THE CLINTON PLAN ARE DUE LATER THIS WEEK 9304070062 930407 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES FAMILY OF LOWCOST PCS IS EXPANDED IN 3 VARIETIES INTERNATIONAL BUSINESS MACHINES CORP EXPANDED ITS PS/VALUEPOINT FAMILY OF LOWCOST PERSONAL COMPUTERS IBM BASED IN ARMONK NY ADDED MACHINES IN THREE VARIETIES WITH REGULARSIZED SPACESAVING AND MINITOWER BASES ALL THE MACHINES USE INTEL CORP'S 486 MICROPROCESSOR AND RANGE IN PRICE FROM 1549 TO 3579 FOR STANDARD CONFIGURATIONS SEPARATELY IBM UNVEILED A NEW MODEL OF PC SERVER A MACHINE THAT ACTS AS A STOREHOUSE AND TRAFFIC COP FOR DATA ON COMPUTER NETWORKS THE PS/2 SERVER 195 WHICH STARTS AT 19995 IS A LESSEXPENSIVE LESSPOWERFUL VERSION OF IBM'S PS/2 SERVER 295 IBM TRIMMED THE PRICE OF THE SERVER 295 BY 30 TO A NEW STARTING PRICE OF 29060 9304070061 930407 MARKETING BRIEF NEW HAMPTON INC AVON FASHIONS UNIT CHANGES ITS NAME TO NEWPORT NEWS NEW HAMPTON INC'S AVON FASHIONS UNIT SAID IT IS CHANGING ITS NAME TO NEWPORT NEWS EFFECTIVE IN THE COMPANY'S 1993 CATALOGS WHICH WILL BE AVAILABLE EARLY NEXT MONTH THE NAME CHANGE FOR THE NEWPORT NEWS VA WOMEN'S MAILORDER FASHION CATALOG WITH 250 MILLION IN ANNUAL SALES SIGNALS THE START OF AN EXTENSIVE PROGRAM TO STRENGTHEN PRODUCTS OPERATIONS AND IMAGE THE COMPANY SAID IT ALSO ENDS A LICENSING AGREEMENT BETWEEN NEW HAMPTON AND AVON PRODUCTS INC THE FORMER OWNER OF AVON FASHIONS THE DECISION TO RETIRE THE AVON FASHIONS NAME FIVE YEARS BEFORE THE 10YEAR LICENSING AGREEMENT EXPIRES REFLECTS NEW HAMPTON'S DESIRE TO AVOID CONFUSION ABOUT THE LINK TO AVON PRODUCTS THE COMPANY SAID 9304070060 930407 BUSINESS BRIEF EXXON CORP UK APPROVES PLAN FOR FIELD OWNED BY COMPANY SHELL EXXON CORP AND ROYAL DUTCH/SHELL GROUP SAID THE UK APPROVED A 2 BILLION REDEVELOPMENT PLAN FOR THE BRENT FIELD IN THE NORTH SEA EXXON AND SHELL EACH OWN A 50 SHARE IN THE FIELD KNOWN TO BE ONE OF THE LARGEST IN THE NORTH SEA THE PROJECT SCHEDULED TO BE COMPLETED IN 1998 WILL SIGNIFICANTLY INCREASE PRODUCTION AND PROLONG THE LIFE OF THE FIELD BY MORE THAN 10 YEARS EXXON SAID BRENT FIELD HAS BEEN IN COMMERCIAL OPERATION SINCE 1972 AT ANY ONE TIME ONLY ONE PLATFORM OUT OF THE FOUR WILL BE SHUT DOWN FOR ABOUT A YEAR FOR MODIFICATIONS SAID EXXON WHICH IS BASED IN IRVING TEXAS THE PROJECT INVOLVES REPLACING PROCESSING EQUIPMENT ON THREE PLATFORMS TO PERMIT DEPRESSURIZATION OF THE FIELDS AS WELL AS CONSTRUCTING NEW LIVING QUARTERS ON ONE 9304070059 930407 MARKETING BRIEF NOTED MAGAZINES TOTAL MAGAZINE ADVERTISING REVENUE ROSE 115 TO 165 BILLION IN THE FIRST QUARTER FROM THE 1992 FIRST QUARTER PUBLISHERS INFORMATION BUREAU SAID FOLLOWING AN INDUSTRYWIDE SLUMP IN RECENT YEARS AD PAGES FOR THE QUARTER GAINED 6 TO 38288 MAGAZINE PUBLISHERS OF AMERICA SAID THE RESULTS REPRESENTED THE STRONGEST FIRST QUARTER IN EIGHT YEARS AND WAS THE FOURTH CONSECUTIVE QUARTER OF CONTINUED GROWTH WHO'S NEWS ECONOMIST NEWSPAPER LTD PUBLISHERS OF THE ECONOMIST NAMED MARJORIE M SCARDINO 46 AS CHIEF EXECUTIVE THE FIRST WOMAN AND AMERICAN TO HEAD THE PUBLISHING COMPANY SHE SUCCEEDS DAVID S GORDON WHO RESIGNED LAST WEEK TO BECOME CHIEF EXECUTIVE OF INDEPENDENT TELEVISION NEWS A BRITISHBASED COMMERCIAL TV NETWORK MRS SCARDINO WAS PRESIDENT OF THE ECONOMIST'S NORTH AMERICAN OPERATIONS HER APPOINTMENT FOLLOWS BY A WEEK THE APPOINTMENT OF BILL EMMOTT AS THE NEW EDITOR FOR ECONOMIST MAGAZINE 9304070058 930407 BUSINESS BRIEF CLEARLY CANADIAN BEVERAGE CORP CONCERN PAYS 181 MILLION TO CAMFREY TO CANCEL PACT CLEARLY CANADIAN BEVERAGE CORP SAID IT PAID 229 MILLION CANADIAN DOLLARS US181 MILLION TO CAMFREY RESOURCES LTD TO END A 1988 ROYALTY AND DISTRIBUTION AGREEMENT BETWEEN THE COMPANIES CLEARLY CANADIAN A VANCOUVER BRITISH COLUMBIA SOFT DRINKS CONCERN SAID IT IS NO LONGER REQUIRED TO PAY A ROYALTY OF 25 CANADIAN CENTS TO CAMFREY FOR EACH CASE OF CLEARLY CANADIAN SOLD IN THE US CLEARLY CANADIAN TOOK A US183 MILLION PRETAX CHARGE IN ITS 1992 RESULTS RELATING TO THE TERMINATION OF THE ROYALTY AGREEMENT WITH CAMFREY THE COMPANY SAID IT LIQUIDATED SOME SHORTTERM INVESTMENTS IN ORDER TO PAY CAMFREY WHICH IS ALSO BASED IN VANCOUVER IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CLEARLY CANADIAN SHARES CLOSED AT 825 UNCHANGED 9304070057 930407 TREASURY SCHEDULES OFFERINGS OF 13WEEK AND 26WEEK BILLS WASHINGTON THE TREASURY ANNOUNCED TWO OFFERINGS OF 13WEEK AND 26WEEK BILLSONE TODAY THAT WAS POSTPONED FROM LAST MONDAY PLUS THE REGULARLY SCHEDULED ONE NEXT MONDAY TODAY'S AUCTION WILL PAY DOWN 350 MILLION ON THE PUBLIC DEBT WITH THE SALE OF ABOUT 224 BILLION IN BILLS TO REPLACE 2275 BILLION IN BILLS THAT ARE MATURING THE SALE WAS DELAYED UNTIL CONGRESS COMPLETED ACTION ON DEBTCEILING LEGISLATION MONDAY NIGHT NEXT MONDAY'S SALE WILL PAY DOWN 123 BILLION ON THE DEBT WITH THE SALE OF ABOUT 22 BILLION IN BILLS FOR 2321 BILLION COMING DUE BOTH SALES WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS AND 26WEEK BILLS THE MINIMUM DENOMINATION IS 10000 THE 13WEEK BILLS BEING SOLD TODAY WILL MATURE JULY 8 AND HAVE A CUSIP NUMBER OF 912794E75 FOR THE 13WEEK BILLS WHICH MATURE OCT 7 THE CUSIP NUMBER IS 912794F90 THE BILLS BEING SOLD MONDAY MATURE JULY 15 OR OCT 14 THE CUSIP NUMBER IS 912794E83 FOR THE 13WEEK BILLS AND 912794G24 FOR THE 26WEEK BILLS FOR BOTH AUCTIONS NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EDT AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES ON THE DAY OF THE SALE COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9304070056 930407 BUSINESS BRIEF AMERICAN ELECTRIC POWER CO FIRM SEEKS STANDARD TARIFF FOR TRANSMITTING ELECTRICITY AMERICAN ELECTRIC POWER CO SAID IT FILED A PROPOSAL WITH THE FEDERAL ENERGY REGULATORY COMMISSION TO SET A STANDARD TARIFF OF 296 PER KILOWATT PER MONTH FOR ELECTRICITY IT TRANSMITS FOR OTHER POWER COMPANIES THROUGH AEP POWER LINES REVENUE FROM SUCH TRANSMISSIONS MAKES UP 7 TO 20 OF THE COLUMBUS OHIO HOLDING COMPANY'S REVENUE PREVIOUSLY AMERICAN ELECTRIC NEGOTIATED THE WHEELING CONTRACTS INDIVIDUALLY AT RATES OF AS MUCH AS 275 PER KILOWATT PER MONTH THE NEW RATE SUBJECT TO REGULATORY APPROVAL AND THE COST SAVINGS FROM NOT HAVING TO NEGOTIATE INDIVIDUAL RATES WON'T SIGNIFICANTLY ADD TO THE COMPANY'S EARNINGS A SPOKESMAN SAID AMERICAN ELECTRIC HAS ASKED FOR THE NEW RATE TO BE EFFECTIVE JUNE 1 BUT THE FERC PROBABLY WON'T DECIDE ON THE MATTER FOR SIX MONTHS TO ONE YEAR 9304070055 930407 MARKETING & MEDIA PARAMOUNT GIVES INDECENT PROPOSAL' ALL THE TRAPPINGS OF A HOLIDAY RELEASE BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD MOST MOVIES RELEASED THIS TIME OF YEAR ARE FILMS STUDIO EXECUTIVES BELIEVE AREN'T STRONG ENOUGH TO BREAK THROUGH THE CLUTTER IN THE SUMMER OR AT CHRISTMAS THE PEAK MOVIEGOING PERIODS SPRING FILMS USUALLY ARE LESS EXPENSIVE TO MAKE AND MARKET AND COME AND GO QUICKLY BUT PARAMOUNT PICTURES IS BETTING APRIL ISN'T A CRUEL MONTH FOR MOVIEGOING ITS INDECENT PROPOSAL AN EXPENSIVE DRAMA ABOUT A BILLIONAIRE WHO OFFERS A YOUNG COUPLE 1 MILLION FOR A ONENIGHT STAND WITH THE WIFE OPENS TODAY HOLLYWOOD HAS BEEN BUZZING ABOUT THE FILM AND ITS AMBITIOUS MARKETING CAMPAIGN FOR WEEKS THE EFFORT FOR EXAMPLE INCLUDES A PRINT AD BUDGET TWICE THE STUDIO'S NORM INDUSTRY EXECUTIVES ESTIMATE THE STUDIO TYPICALLY SPENDS 500000 OR MORE ON PRINT ADS FOR EACH MOVIE THE MOVIE FEATURES THREE STARS ROBERT REDFORD DEMI MOORE AND WOODY HARRELSON AND IS BEING BACKED BY A TOTAL MARKETING EFFORT WITH THE LOOK AND FEEL OF A BIGBUDGET HOLIDAY RELEASE THERE ARE SPECIAL CIRCUMSTANCES IT HELPS THAT THE FILM WAS PRODUCED BY SHERRY LANSING THE STUDIO'S NEW CHAIRMAN AND EVERYBODY AT PARAMOUNT IS WORKING HARD TO MAKE THE FILM A SUCCESS AND REVERSE PARAMOUNT'S COLD STREAK MS LANSING WAS A LONGTIME INDEPENDENT PRODUCER AND INDECENT PROPOSAL WAS THE LAST FILM SHE OVERSAW BEFORE BECOMING HEAD OF MOTION PICTURE OPERATIONS AFTER BRANDON TARTIKOFF LEFT AS CHAIRMAN OF THE PARAMOUNT COMMUNICATIONS INC STUDIO LAST YEAR PARAMOUNT EXECUTIVES INSIST THAT THE PUSH THEY HAVE GIVEN INDECENT PROPOSAL IS NO MORE THAN WHAT THEY EXPEND FOR EVERY ONE OF THEIR FILMS THE INCREASED PRINT BUDGET THEY SAY HAS BEEN OFFSET BY CURTAILED TV AD SPENDING THEY CONCEDE THAT OTHER PARTS OF THE EFFORT INCLUDING AN UNUSUAL TEASER TRAILER AND DIFFERENT OUTDOOR BILLBOARD ADS ARE THINGS THEY DO NOT DO REGULARLY BUT SAY THEY ALL JUST SEEMED RIGHT FOR THIS FILM PARAMOUNT WON'T DISCLOSE THE FILM'S TOTAL MARKETING COSTS BUT LAST YEAR'S INDUSTRY AVERAGE FOR MAJOR FILMS WAS 135 MILLION ALTHOUGH REPORTS OF MOVIEGOER INTEREST SHOW HIGH AWARENESS FOR THE MOVIE INDECENT PROPOSAL ISN'T A SURE THING EVEN PARAMOUNT INSIDERS EXPECT THE REVIEWS TO BE MIXED LAST FALL'S COMEDY HONEYMOON IN VEGAS HAD A SIMILAR THEME WHICH COULD REDUCE INTEREST IN INDECENT PROPOSAL AND THE MOVIE DIDN'T COME CHEAP PRODUCTION COSTS ALONE ARE ESTIMATED AT MORE THAN 32 MILLION QUESTIONS ALSO LINGER AS TO HOW AUDIENCES WILL REACT TO THE WIFEFORSALE STORY LINE IN A DRAMA IN TV ADS AN ANNOUNCER ENCOURAGES DISCUSSION BY ASKING WHAT WOULD YOU DO IF THE WEALTHY FINANCIER PLAYED BY MR REDFORD STEPPED IN WITH SUCH AN OFFER SOME MOVIEGOERS SAY THEY FIND THE CONCEPT DISCONCERTING AND HAVE THE MOVIE LOW ON THEIR LIST SIMPLY BECAUSE OF THE SETUP MS LANSING DOESN'T EXPECT A BACKLASH I THINK EVERYBODY WILL IDENTIFY WITH ONE SIDE OF THE TRIANGLE SHE PREDICTS WOMEN WILL ASK THEMSELVES COULD I DO THAT AND MEN WILL ASK WHAT IF THAT HAPPENED SHE SAYS AND THE REDFORD CHARACTER A GUY WHO SPENT HIS WHOLE LIFE WITH NOTHING BUT HIS WORK YOU SEE THE PRICE YOU PAY FOR A PURSUIT OF MONEY AND POWER PARAMOUNT IS HOPING INDECENT PROPOSAL WILL BECOME THE NEXT RARE MOVIE THAT BREAKS OUT AND SUCCEEDS IN THE OFFSEASON SUCH MOVIES TEND TO BE AIMED AT ADULTS WITH A SLANT TOWARD WOMEN LAST YEAR BASIC INSTINCT SURPRISED MANY WHEN IT OPENED MARCH 20 AND WENT ON TO GROSS MORE THAN 117 MILLION IN THE US TO COVER ITS BETS PARAMOUNT HAS WORKED TO EXPLOIT THE CONTROVERSIAL NATURE OF THE MOVIE THE STUDIO TOOK THE UNUSUAL STEP OF IGNORING THE THREE STARS' FACES FOR BILLBOARD ADS OPTING TO SHOWCASE A SINEWY SHOT OF MS MOORE LOUNGING ON A BED AMID PILES OF CASH MS MOORE'S HEAD ISN'T SHOWN BUT ARTHUR COHEN PARAMOUNT'S MARKETING CHIEF ASSURES IT'S DEMI'S BODY RETOUCHED ONLY EVER SO SLIGHTLY THE STUDIO BEGAN PROMOTING THE FILM EARLY WITH A TEASER TRAILER AT CHRISTMAS TIME THAT THE MOTION PICTURE ASSOCIATION OF AMERICA RULED WAS SO STEAMY IT COULD BE SHOWN ONLY IN THEATERS SHOWING RRATED MOVIES IT SHOWED A SCANTILY CLAD MR HARRELSON AND MS MOORE IN BED AS SADE CROONED NO ORDINARY LOVE IT WAS FOLLOWED A FEW MONTHS LATER BY A REGULAR TRAILER TAME ENOUGH TO BE SHOWN BEFORE ALL MOVIES THE FACT THAT PARAMOUNT CREATED A TEASER AT ALL IS UNUSUAL NORMALLY ONLY EVENT PICTURES SUCH AS JURASSIC PARK ARE PROMOTED WITH TEASERS PARAMOUNT'S MARKETERS HAVE CRAFTED DEALS WITH LOCAL RADIO DISK JOCKEYS WHO HAVE AGREED TO AIR PROMOTIONS POSING THE MOVIE'S PROPOSAL TO LISTENERS AND PUBLICISTS AT THE STUDIO HAVE SECURED MAGAZINE COVERS FOR THE STARS MS MOORE IS ON US AND ESQUIRE AND MR HARRELSON IS ON LOS ANGELES MAGAZINE THE MAGAZINE AD CAMPAIGN INCLUDED FOUR CONSECUTIVE PAGES OF ADS IN MAGAZINES INCLUDING PEOPLE ENTERTAINMENT WEEKLY GLAMOUR AND COSMOPOLITAN THE FIRST THREE PAGES EACH FEATURED A PHOTOGRAPH OF ONE STAR WITH THE TITLE APPEARING ON THE FINAL PAGE WE'VE ATTEMPTED TO MAKE THIS AN 'EVENT' MOVIE SAYS BARRY LONDON PRESIDENT OF PARAMOUNT'S MOTION PICTURE GROUP THE PUBLIC ULTIMATELY WILL TELL US IF IT IS 9304070054 930407 TECHNOLOGY BRIEF MOSCOM CORP COMPANY SIGNS CONTRACT WITH SIEMENS OF GERMANY MOSCOM CORP PITTSFORD NY SAID IT SIGNED A CONTRACT TO SUPPLY ELECTRICAL EQUIPMENT GIANT SIEMENS AG WITH A SYSTEM THAT ALLOWS TELEPHONE CALLERS TO SELECT EXTENSIONS DEPARTMENTS OR SUBJECTS WITH SPOKEN COMMANDS SIEMENS WOULD MARKET THE GERMAN LANGUAGE PRODUCT UNDER ITS OWN NAME TO SMALL AND MEDIUMSIZE CUSTOMERS IN GERMANY WHERE MORE THAN 90 OF THE TELEPHONES ARE ROTARY MOSCOM SAID UNDER THE TERMS OF THE CONTRACT MOSCOM WOULD FILL SIEMENS'S ORDERS ON DEMAND THERE IS NO SET AMOUNT OF ORDERS BUT TINY MOSCOM WHICH HAD SALES OF 126 MILLION LAST YEAR ESTIMATES THE CONTRACT WILL BE A SIGNIFICANT CONTRIBUTOR TO EARNINGS IN THE SECOND HALF OF 1993 SHIPMENTS BEGIN IN THE THIRD QUARTER MOSCOM MAKES TELEPHONE COST MANAGEMENT PRODUCTS AND PRODUCTS THAT USE VOICE RECOGNITION TECHNOLOGY SIEMENS IS BASED IN MUNICH 9304070053 930407 SOFTER NUMBERS AS IBM'S WOES GREW ITS ACCOUNTING TACTICS GOT LESS CONSERVATIVE FIRM AGGRESSIVELY RECORDED SHIPMENTS AS SALES USED RARE LEASING INSURANCE' COMPANY DEFENDS ITS MOVES BY MICHAEL W MILLER AND LEE BERTON STAFF REPORTERS OF THE WALL STREET JOURNAL TO ALL OUTWARD APPEARANCES INTERNATIONAL BUSINESS MACHINES CORP RAN INTO TROUBLE WITH STARTLING SPEED EVEN ITS HARSHEST CRITICS HAVE BEEN STUNNED BY ITS NEARLY 5 BILLION OF LOSSES LAST YEAR ITS FIRST LAYOFFS IN HALF A CENTURY AND AN UNPRECEDENTED PURGE OF TOP EXECUTIVES ITS STOCK HAS LOST MORE THAN 70 BILLION IN MARKET VALUE SINCE IT PEAKED IN 1987 AND THE CRISIS HAS SPARKED A ONCEUNTHINKABLE MOVE IBM TURNED TO AN OUTSIDER LOUIS V GERSTNER TO RESCUE IT NOW CONSIDERABLE EVIDENCE SUGGESTS THAT IBM MAY HAVE HELPED DELAY ITS DAY OF RECKONING WITH SOME SURPRISINGLY AGGRESSIVE ACCOUNTING MOVES THE MOVES DIDN'T VIOLATE ANY LAWS OR CAUSE THE COMPANY'S FUNDAMENTAL BUSINESS PROBLEMS SOME THOUGH NOT ALL OF THE MOVES WERE FULLY DISCLOSED TO THE PUBLIC BUT SOME FINANCE EXPERTS SAY THAT JUST AS IBM'S BUSINESS STARTED TO SOUR ITS ACCOUNTING BECAME MARKEDLY LESS CONSERVATIVE SINCE THE MID1980S IBM HAS BEEN BORROWING FROM THE FUTURE TO BOLSTER TODAY'S PROFITS SAYS THORNTON O'GLOVE A FREQUENTLY CRITICAL SAN FRANCISCO ACCOUNTING EXPERT AND FORMER PUBLISHER OF THE QUALITY OF EARNINGS NEWSLETTER ALTHOUGH IBM DOESN'T DISPUTE ANY OF THE FACTS ABOUT THE ACCOUNTING CHANGES IT TAKES STRONG ISSUE WITH THE CONCLUSION BY SOME EXPERTS THAT IT WAS STRETCHING TO MAKE ITS NUMBERS LOOK BETTER WHILE PUSHING POSSIBLE BAD NEWS INTO THE FUTURE THE EVIDENCE OF THE AGGRESSIVE ACCOUNTING COMES ON SEVERAL FRONTS IBM'S FORMER CHIEF OUTSIDE AUDITOR PRICE WATERHOUSE'S DONALD CHANDLER WROTE IBM A BLISTERING 20POINT MEMO IN NOVEMBER 1988 SUGGESTING THAT THE COMPANY WAS REPORTING REVENUE THAT IT MIGHT NEVER GET FOR EXAMPLE HE CRITICIZED IBM FOR BOOKING REVENUE WHEN ITS PRODUCTS WERE SHIPPED TO DEALERS WHO COULD RETURN THEM AND SOMETIMES EVEN TO ITS OWN WAREHOUSES A FAR MORE AGGRESSIVE APPROACH THAN MANY COMPANIES TAKE FOR MORE THAN 10 YEARS IBM HAS QUIETLY TURNED TO MERRILL LYNCH & CO AND OTHERS TO EXECUTE A RARE FINANCIAL MANEUVER THAT PROPPED UP THE RESULTS OF IBM'S BIG LEASING BUSINESS THE MANEUVER ALLOWED IBM TO BOOK IMMEDIATELY ALL THE REVENUE FROM A LONGTERM COMPUTER LEASE EVEN THOUGH THE ACTUAL DOLLARS WOULD FLOW IN ONLY OVER THE LIFE OF THE LEASE THAT DIDN'T BREAK ANY ACCOUNTING RULES BUT SOME ACCOUNTANTS TERM IT AN ENDRUN THAT MANY BLUECHIP COMPANIES WOULD AVOID MR CHANDLER CALLED THE REVENUE BOOSTER TROUBLING INDEED AND URGED IBM TO TAKE IMMEDIATE ACTION TO USE THE MANEUVER LESS ADVICE THAT IBM IGNORED FOOTNOTES IN IBM'S ANNUAL REPORTS DISCLOSE THAT IN 1984 IT ADOPTED MORE LIBERAL ACCOUNTING FOR ITS HUGE INVESTMENTS IN EQUIPMENT AND FOR ITS RETIREMENT PLAN THE CHANGES A BIT LIKE REMOVING A CAR'S SHOCK ABSORBERS ENABLED IBM TO PUSH THE COST OF ITS INVESTMENTS INTO THE FUTURE WHILE SIMILAR TO MOVES AT MANY OTHER COMPANIES THEY MAY HAVE INCREASED IBM'S PROFITS MORE THAN MANY INVESTORS REALIZE ALTHOUGH IBM DISCLOSED DETAILS OF THE CHANGES IT NEVER SAID HOW MUCH THEY LIFTED EARNINGS AND STILL REFUSES TO DO SO IBM STRONGLY DEFENDS ALL ITS ACCOUNTING MOVES AND SAYS ALL THE CHANGES WERE MADE FOR PRUDENT BUSINESS REASONS IN A 22PAGE RESPONSE TO QUESTIONS IT WRITES WHEN OUR ACCOUNTING POLICIES AND PRACTICES ARE COMPARED WITH OTHERS IN OUR INDUSTRY OR OTHER MAJOR CORPORATIONS THEY CANNOT BE SHOWN EVEN WITH PERFECT HINDSIGHT TO BE OTHER THAN THOUGHTFUL AND PRUDENT IBM CALLS THE CHANDLER MEMO PART OF THE NORMAL GIVEANDTAKE BETWEEN A COMPANY AND AN AUDITOR WITH A FLAIR FOR PEPPERY LANGUAGE THE COMPANY SAYS IT IMPROVED ITS PROCEDURES IN RESPONSE TO SOME OF HIS CONCERNS BUT HASN'T CHANGED ITS GENERAL ACCOUNTING PHILOSOPHY AND MANY OF THE PRACTICES AT ISSUE MR CHANDLER WHO RETIRED LAST YEAR AT FIRST DECLINED TO COMMENT WHEN REACHED AT HOME LATER IN A STATEMENT RELEASED BY IBM HE SAID HIS WORK WITH THE COMPANY WAS TOTALLY OPEN AND FRANK OF HIS SPECIFIC CRITICISMS HE CAUTIONED IT'S ABSOLUTELY VITAL THAT THEY NOT BE TAKEN OUT OF CONTEXT HE SAID EVERY SIGNIFICANT MATTER HE RAISED WAS SATISFACTORILY RESOLVED AND NOTED THAT HE CONSISTENTLY BLESSED IBM'S FINANCIAL STATEMENTS WITH CLEAN AUDIT OPINIONS QUESTIONS ABOUT IBM'S ACCOUNTING COULD BE AWKWARD FOR THE WOUNDED COMPUTER GIANT IBM LONG ENJOYED A REPUTATION AS THE EPITOME OF FINANCIAL CONSERVATISM WITH TRIPLEARATED DEBT AND THE BLUEST OF BLUECHIP STOCKS A PIONEER IN MANDATING RIGOROUS WORKPLACE ETHICS IBM REQUIRES ALL EMPLOYEES TO SWEAR THAT THEY HAVE READ A 28PAGE BUSINESS CONDUCT GUIDELINES MANUAL THAT WARNS THEM AGAINST NOT ONLY REPORTING INFORMATION INACCURATELY BUT ALSO ORGANIZING IT IN A WAY THAT IS INTENDED TO MISLEAD OR MISINFORM OVER THE PAST EIGHT YEARS IBM HAS OPENLY DISCUSSED ITS BUSINESS TROUBLES BUT TYPICALLY WITH AN UPBEAT TONE MEANWHILE IN THE LATE 1980S IBM'S EXECUTIVES GOT BIG RAISES AND BONUSES PARTLY PEGGED TO ITS EARNINGS AND SANGUINE INVESTORS LOADED UP ON ITS STOCK THE STOCK IS LANGUISHING AT 52 A SHARE DOWN FROM A 52WEEK HIGH OF 100 AND A 1987 PEAK OF 175 A SHARE THE QUESTIONS ABOUT IBM'S ACCOUNTING FALL INTO THREE BROAD AREAS WHEN IS A SALE A SALE AS COMPETITION IN THE COMPUTER MARKET HEATED UP OVER THE PAST DECADE IBM'S SALES FORCE DREAMED UP NEW GIMMICKS FREE UPGRADES STRETCHEDOUT PAYMENT PLANS A TRY AND BUY PLAN WITH NO INITIAL PAYMENT PRICE PROTECTION REFUNDS IF PRICES LATER DROP AND AT IBM'S ARMONK NY HEADQUARTERS ACCOUNTANTS STRUGGLED TO KEEP UP WITH ALL THE TWISTS AND TURNS OF ITS SALES DEALS THEIR BASIC QUESTION HOW MUCH MONEY SHOULD BE RECORDED AS REVENUE IN IBM'S FINANCIAL REPORTS IN AN INTERVIEW LATE LAST YEAR DANIEL GOUGH A FORMER IBM ACCOUNTING MANAGER SAID HE AND HIS COLLEAGUES WERE UNDER PRESSURE TO MAKE MORE LIBERAL INTERPRETATIONS OF IBM'S SALES POLICIES IT AMAZED ME TO SEE HOW AGGRESSIVE IBM BECAME TO HELP BOLSTER A REVENUE STREAM THAT WAS SLOWING DOWN SIGNIFICANTLY HE SAID MR GOUGH CONCEDED THAT HE LEFT IBM LAST YEAR UNHAPPILY HE SAID IT WAS BECAUSE HE DIDN'T APPROVE OF ITS ACCOUNTING POLICIES AN IBM SPOKESMAN DECLINES TO COMMENT ON WHY MR GOUGH LEFT BUT MR GOUGH'S CONCERN WAS ECHOED IN THE 1988 MEMO BY PRICE WATERHOUSE'S MR CHANDLER IN HIS MEMO TO MICHAEL VAN VRANKEN THEN IBM'S CONTROLLER MR CHANDLER DETAILED THE PRACTICES THAT UPSET HIM AND HIS TEAM OF ACCOUNTANTS MR CHANDLER'S FUNDAMENTAL COMPLAINT THAT IBM WAS RUSHING TO RECORD REVENUE ON ITS BOOKS AS SOON AS IT SHIPPED A PRODUCT EVEN FOR SALES WITH ESCAPE HATCHES THAT COULD REDUCE THE REVENUE IBM ULTIMATELY RECEIVED FOR EXAMPLE MR CHANDLER WROTE IBM'S COMPUTER SHIPMENTS TO DEALERS ARE RECORDED AS SALES AT TIME OF SHIPMENT EVEN THOUGH THE DEALERS HAVE THE RIGHT TO RETURN THE COMPUTERS HE WORRIED THAT SOME REVENUE FROM SUCH SHIPMENTS WOULD BE DIFFICULT TO DEFEND AT VERY BEST IN SOME CASES HE FOUND IBM WAS RECORDING REVENUE WHEN IT SHIPPED PRODUCTS MERELY TO ITS OWN WAREHOUSES THIS SEEMS CLEARLY INAPPROPRIATE HE WROTE IBM DEFENDS ITS CONTINUING PRACTICE OF BOOKING REVENUE AS SOON AS IT SHIPS A PRODUCT AND SAYS IT MAKES ALLOWANCES FOR RETURNS THE EARNINGS PROCESS IS SUBSTANTIALLY COMPLETE UPON SHIPMENT IBM CONTENDS ADDING PRICE WATERHOUSE WAS AND CONTINUES TO BE IN FULL AGREEMENT PRICE WATERHOUSE'S CURRENT LEAD PARTNER FOR AUDITING IBM KENNETH DOYLE SAYS IBM'S TERMS WITH DEALERS WEREN'T AS LENIENT AS MR CHANDLER BELIEVED HOWEVER IBM'S APPROACH CAN LEAD TO MANY REVENUEBOOKING ABUSES PARTICULARLY IN THE COMPUTER BUSINESS SAYS PAUL REGAN A LEADING EXPERT ON REVENUE ISSUES AT THE HEMMING MORSE ACCOUNTING FIRM IN SAN FRANCISCO HE OFFERS A MORE CONSERVATIVE STANDARD FOR WHEN THE EARNINGS PROCESS IS COMPLETE WHEN THE PRODUCTS ARE FUNCTIONING PROPERLY IN KEEPING WITH THE SALES AGREEMENT AND THAT CAN TAKE A LONG TIME IBM ISN'T THE ONLY COMPANY THAT BOOKS REVENUE UPON SHIPMENT BUT MANY OF ITS HIGHTECH RIVALS ARE MORE CONSERVATIVE WE JUST DON'T PUT IT ON THE FLOOR THEN SAY WE CAN BOOK IT SAYS A SPOKESMAN FOR AMDAHL CORP IBM'S LEADING RIVAL IN MAINFRAME COMPUTERS IT HAS TO BE TURNED OVER BY OUR FIELD ENGINEERING GROUP THEY HAVE TO CHECK THE MACHINE OUT AND MAKE SURE IT'S UP AND RUNNING THAT'S THE POINT WE ACTUALLY TAKE CREDIT FOR THE REVENUE A MIDDLEGROUND APPROACH IS USED BY XEROX CORP IT BOOKS REVENUE FROM ITS SMALL COPIERS IMMEDIATELY UPON SHIPMENT BUT WITH ITS BIGGER MACHINES IT WAITS UNTIL EVERYONE SAYS WOW IT'S BETTER THAN SLICED BREAD' A SPOKESMAN SAYS IBM CONCEDES THAT IT SOMETIMES BOOKS REVENUE WHEN IT SHIPS A PRODUCT TO ITS OWN WAREHOUSES FOR TEMPORARY INTRANSIT STORAGE EN ROUTE TO A CUSTOMER BUT IT SAYS IT DOES SO ONLY WHEN INSTALLATION AT THE CUSTOMER IS EXPECTED WITHIN 30 DAYS IN PART BECAUSE OF THE CHANDLER MEMO IBM SAYS IT CUT THAT PERIOD FROM 45 DAYS PREVIOUSLY JOSEPH MARTIN IBM'S ASSISTANT CONTROLLER IN CHARGE OF ACCOUNTING PRACTICES SAYS THE WAREHOUSE SHIPMENTS INVOLVE ONLY SMALL SUMS WITH A NEGLIGIBLE EFFECT ON EARNINGS MR CHANDLER ALSO FOUND VERY TROUBLING IBM'S HANDLING OF PRICE PROTECTION ITS TERM FOR ASSURING CUSTOMERS THAT IF IT LATER CUT PRICES THEY WOULD OWE ONLY THE REDUCED PRICE HE SAID IBM WAS BOOKING FULL REVENUE AS SOON AS IT SHIPPED ITS PRODUCTS DESPITE AMPLE EVIDENCE THAT IT WOULD LATER CUT PRICES AND THUS RECEIVE LESS MONEY IBM SAYS MR CHANDLER WASN'T GIVING IT ENOUGH CREDIT FOR ITS BROAD ALLOWANCE FOR REVENUE ADJUSTMENTS WHICH WAS BASED ON HISTORICAL EXPERIENCE AND WAS APPLIED TO ALL REVENUE IN 1982 IBM ASKED MERRILL LYNCH TO PERFORM A RARE INVENTIVE PIECE OF FINANCIAL SURGERY THAT DIRECTLY AFFECTED ITS PROFITS THOUGH FEW SHAREHOLDERS OR ANALYSTS EVER HEARD OF IT WHEN COMPANIES LEASE OUT EQUIPMENT THEY CAN ACCOUNT FOR IT AS AN OPERATING OR A SALESTYPE LEASE AN OPERATING LEASE IS CONSERVATIVE REVENUES GO ON THE BOOKS AS THEY ACTUALLY FLOW IN EACH YEAR A SALESTYPE LEASE IS MORE LIBERAL ALL THE REVENUE THAT WILL EVER COME IN IS RECORDED IN THE FIRST YEAR TO RESTRAIN REVENUEHUNGRY COMPANIES THE FINANCIAL ACCOUNTING STANDARDS BOARD HAS EXTENSIVE RULES RUNNING MORE THAN 100 PAGES ABOUT SALESTYPE LEASES IBM'S ACCOUNTANTS ZEROED IN ON A FORMULA IN PARAGRAPH 7D ADD UP ALL THE LEASE PAYMENTS PLUS THE VALUE OF THE COMPUTER WHEN THE LEASE EXPIRES IF THE TOTAL IS 90 OF THE COMPUTER'S VALUE TODAY THE LEASE CAN BE CONSIDERED A SALESTYPE ONE IN THE HOTLY COMPETITIVE MARKET IBM WAS OFFERING TERMS THAT DIDN'T ADD UP TO THE 90 MARK MERRILL'S SOLUTION IT SOLD IBM 7D INSURANCE GUARANTEEING A CERTAIN VALUE OF THE COMPUTER AT THE END OF THE LEASE ENOUGH TO PUSH IBM OVER 90 HELPING IBM KEEP THE ACCOUNTING PROPER FOR THESE LEASES WAS A SIMPLE MATTER AND WE WERE ABLE TO PROVIDE THIS SERVICE FOR THEM SAYS FREDERICK BUTLER A FORMER MERRILL DIRECTOR OF LEASE FINANCING WITHOUT THIS GUARANTEE THESE LEASES WOULD BE JUST UNDER THE 90 LINE AND WOULD HAVE TO BE TAKEN AS OPERATING LEASES MR BUTLER SAYS MERRILL DIDN'T OFFER THE SERVICE TO ANY OTHER COMPANY ASKED LATER FOR FURTHER INFORMATION ABOUT THE ARRANGEMENT A MERRILL SPOKESMAN DECLINED TO COMMENT IBM SAYS IT ALSO HAD A SECOND REASON FOR SEEKING 7D INSURANCE THE VALUE OF THE PRODUCTS IT LEASES OUT MIGHT PLUNGE BY THE TIME THE LEASES ENDED SO IT HIRED MERRILL TO SPREAD THAT RISK BUT IBM'S MR MARTIN CONCEDES THAT IBM ALSO WANTED THE IMME DIATE REVENUE THAT SALESTYPE LEASES WOULD BRING THAT'S ONE ANSWER HE SAYS IBM SAYS ITS DEAL WITH MERRILL LASTED UNTIL 1990 TODAY IBM USES AN OFFSHORE 7D INSURER IT WON'T IDENTIFY PRICE WATER HOUSE'S MR DOYLE WON'T SAY HOW MUCH IBM REVENUE IS AFFECTED BY 7D INSURANCE BUT HE CALLS IT NOT MATERIAL ACCOUNTING PARLANCE FOR 5 OF REVENUE OR LESS SOME ACCOUNTING EXPERTS CALL 7D INSURANCE A SURPRISING TACTIC FOR A CONSERVATIVE COMPANY STRUCTURING A LEASE TO VIOLATE THE SPIRIT OF THE ACCOUNTING RULE IS WEASELING HOKEY AND TOTALLY INAPPROPRI ATE FOR A COMPANY OF IBM'S STATURE SAYS HOWARD SCHILIT AN ASSOCIATE PROFESSOR OF ACCOUNTING AT AMERICAN UNIVERSITY IN WASHINGTON DC THE EXPERTS ALSO NOTE GREAT DANGER IN RECORDING A LEASE'S ENTIRE REVENUE UP FRONT WHAT IF IT NEVER MATERIALIZES THAT HAS BECOME INCREASINGLY LIKELY IN THE COMPUTER INDUSTRY WHERE THE BREAKNECK PACE OF CHANGE HAS CUSTOMERS CONSTANTLY SWITCHING TO EVERCHEAPER MACHINES CONVERTING OPERATING LEASES INTO SALESTYPE LEASES IN A VERY AGGRESSIVE WAY CAN CREATE A LOT OF PROBLEMS FOR A LESSOR DOWN THE ROAD SAYS DAN JOZEFOV VICE PRESIDENT AND CONTROLLER OF MITSUINE VITT CAPITAL CORP A SAN FRANCISCO LEASING FIRM IF THE CASH FLOW DOESN'T COME IN HE ADDS THE COMPANY WILL EVENTUALLY HAVE TO TAKE A HIT AGAINST PROFITS DID IBM BOOK SALESTYPELEASE REVENUE THAT NEVER MATERIALIZED MR DOYLE SAYS SUCH REVERSALS WERE NOT MATERIAL TO IBM'S FINANCES HE ADDS THAT 7D INSUR ANCE IS ACCEPTABLE ACCOUNTING AND IT WAS THOROUGHLY REVIEWED BEFORE IT WAS IMPLE MENTED THE COMPANY EVIDENCED PRUDENCE IN THE WAY THAT IT WAS REVIEWED AND IT DIDN'T GET OUT OF CONTROL IBM ISN'T THE ONLY COMPANY TO TAKE OUT 7D INSURANCE HOWARD CHICKERING PRES IDENT OF A U S WEST INC LEASING UNIT CALLED RVI GUARANTY CO SAYS HIS FIRM SELLS 7D INSURANCE BUT NOT TO COMPANIES SUCH AS IBM WHOSE PRODUCT PRICES CAN FALL SO UNPREDICTABLY WE WOULDN'T TOUCH THE COMPUTER BUSINESS HE SAYS IBM'S FORMER OUTSIDE AUDITOR MR CHANDLER ALSO SOUNDED THE ALARM ABOUT IBM'S AGGRESSIVE PUSH TO SALESTYPE LEASES HE NOTED THAT SOME OF THESE TRANSACTIONS RARELY QUALIFY AS SALESTYPE LEASES WITH OUT THE HELP OF A THIRD PARTY SUCH AS MERRILL HE URGED IBM TO ACT QUICKLY TO BRING DOWN RELIANCE ON 7D INSURANCE IN HINDSIGHT 1984 WAS ALMOST PRECISELY WHEN THE COMPUTERINDUSTRY DYNAMICS BE GAN TO TURN AGAINST IBM THE PERSONALCOMPUTER BOOM WAS JUST STARTING TO ERODE THE ROLE OF IBM'S MIGHTY MAINFRAMES IN OFFICE WORK IBM'S RETURN ON EQUITY HIT A PEAK OF 265 THAT YEAR BEFORE PLUNGING TO 96 BY 1989 AND DISAPPEARING AMID LOSSES IN 1991 AND 1992 FOOTNOTES IN IBM'S 1984 ANNUAL REPORT SHOW THAT IT BEGAN OVERHAULING ITS ACCOUNTING TACTICS TO SPREAD THE COSTS OF FACTORIES AND OTHER INVESTMENTS FAR INTO THE FUTURE INSTEAD OF RECORDING THEM IN THE SHORT TERM IBM ALSO REDUCED THE ESTIMATED COST OF ITS RETIREMENT PLANS WHICH THEN WOULD TAKE A SMALLER CHUNK OUT OF EACH YEAR'S EARNINGS THE ACCOUNTING CHANGES THEMSELVES WERE STANDARD PRACTICE AT MANY COMPANIES AND HARDLY A SECRET IBM'S ANNUAL REPORT DISCLOSED THEM BUT IN HINDSIGHT IBM'S CRITICS SAY THE CHANGES WERE MORE EVIDENCE THAT IBM WAS IMPRUDENTLY SHIFTING AWAY FROM ITS TRADITIONAL CONSERVATISM CONFIDENT THAT MAIN FRAME COMPUTERS WOULD AGAIN YIELD ENORMOUS PROFITS IBM CHOSE TO DEFER MORE COSTS INTO THE FUTURE THE CRITICS SUGGEST MR O'GLOVE THE AUDITING EXPERT CALCULATES THAT IN 1984 THE ACCOUNTING CHANGES WERE RESPONSIBLE FOR 26 OF IBM'S PROFIT GAIN THAT YEAR PROFITS SURGED BY 173 A SHARE TO 1077 SO THAT 26 AMOUNTS TO 45 CENTS A SHARE IN 1985 EARNINGS FELL 10 CENTS A SHARE BUT WITHOUT THE ACCOUNTING CHANGES MR O'GLOVE SAYS THEY WOULD HAVE DROPPED 86 CENTS A SHARE IT WAS JUST THE BEGINNING OF THE SLIDE THAT MANY OTHER FINANCIAL ANALYSTS MISSED IN THE MID AND LATE1980S BECAUSE THEY CONTINUED TO BELIEVE THAT IBM WAS FOLLOWING CONSERVATIVE ACCOUNTING AS IT DID IN THE EARLY PART OF THE DECADE HE SAYS ALTHOUGH IBM HAS NEVER SPECIFIED HOW MUCH THE ACCOUNTING CHANGES AFFECTED ITS EARNINGS IT SAYS MR O'GLOVE'S NUMBERS ARE WAY OFF IT ALSO CITES A 1985 ACCOUNTANTS' SURVEY SHOWING THAT 70 OF US COMPANIES WERE SPREADING INVESTMENT COSTS INTO THE FUTURE JUST AS IBM DID AND AS FOR LOWERING ITS RETIREMENTPLAN COSTS IBM SAYS ITS FINANCIAL ADVISERS PREDICTED THAT THE PLANS' INVESTED ASSETS WOULD START EARNING A HIGHER RETURN AND THUS THE COST TO THE COMPANY WOULD DROP WE STRONGLY DISAGREE THAT OUR ACTIONS WERE ANYTHING BUT APPROPRIATE IBM SAYS