US HOME CORP SAID A DISCLOSURE STATEMENT FOR ITS PLAN OF REORGANIZATION HAS BEEN APPROVED FOR MAILING TO CREDITORS AND SHAREHOLDERS THE DOCUMENT APPROVED LAST WEEK BY A FEDERAL BANKRUPTCY COURT JUDGE IN NEW YORK WILL BE MAILED WITH BALLOTS ON OR ABOUT MONDAY US HOME ALSO SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 175 MILLION PRINCIPAL AMOUNT OF SENIOR NOTES DUE 2003 THE UNDERWRITER IS DILLON READ & CO PROCEEDS WILL BE USED TO PAY UNSECURED CREDITORS THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS HAS VOTED TO ACCEPT THE REORGANIZATION PLAN WHICH OFFERS TO ISSUE NEW DEBT PLUS NEW COMMON STOCK AND NEW PREFERRED SHARES TO SETTLE 297 MILLION IN UNSECURED CLAIMS THE COMPANY SAID US HOME A HOME BUILDER BASED IN HOUSTON SAID A HEARING ON CONFIRMING THE REORGANIZATION PLAN IS SET FOR MAY 24 9304070051 930407 BUSINESS BRIEF FORD MOTOR CO BRITISH UNIT TO CUT PRICES ON AUTOS AS MUCH AS 10 THE BRITISH UNIT OF FORD MOTOR CO SAID IT PLANS TO LOWER PRICES AS MUCH AS 10 IN RESPONSE TO RECENTLY ANNOUNCED TAX CHANGES IN THE UNITED KINGDOM THE AUTO MAKER SAID PRICES OF ITS GRANADA AND SCORPIO MODELS WILL BE CUT AN AVERAGE 10 FORD OF BRITAIN PLANS SMALLER REDUCTIONS ON SOME OF ITS LOWERPRICED CARS INCLUDING PRICE CUTS OF 25 TO 55 FOR SOME FIESTA ESCORT AND ORION VERSIONS THE COMPANY ALSO SAID IT IS LOWERING THE PRICE OF ITS SOONTOBEINTRODUCED LUXURY MODEL THE MONDEO FORD SAID THE PRICE ADJUSTMENTS REFLECT CHANGES IN PERSONAL TAXES ON COMPANY CARS BRITAIN'S BUDGET PACKAGE FOR THE FISCAL YEAR STARTED APRIL 1 INCLUDED AN INCREASE IN TAXES ON EMPLOYEES WHO GET CARS AS PART OF A COMPENSATION PACKAGE BY THEIR COMPANIES A LARGE PERCENTAGE OF CARS SOLD IN BRITAIN ARE COMPANY CARS IAN MCALLISTER CHAIRMAN OF FORD OF BRITAIN SAID WE HAVE TAKEN A VERY CAREFUL LOOK AT THE BUDGET CHANGES AND HAVE DEVELOPED A PRICING STRATEGY WHICH IS EXTREMELY COMPETITIVE AND WILL BENEFIT ALL OUR CUSTOMERS 9304070050 930407 ENTERPRISE SMALLBUSINESS GROUPS SPLIT ON APPROACH TO LOBBYING NFIB CONFRONTS NEW ADMINISTRATION OTHERS TAKE MORE CONCILIATORY LINE BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SPLIT HAS EMERGED AMONG SMALLBUSINESS GROUPS ON HOW TO PUSH THEIR AGENDA WITH THE FIRST DEMOCRATIC ADMINISTRATION IN A DOZEN YEARS THE MAMMOTH NATIONAL FEDERATION OF INDEPENDENT BUSINESS IS TAKING AN OPENLY CONFRONTATIONAL APPROACH TO THE CLINTON WHITE HOUSE ON MANY ISSUES BUT SMALLER ADVOCACY ORGANIZATIONS THAT HAVE LONG LABORED IN THE SHADOW OF THE 600000MEMBER NFIB ARE TAKING A MORE CONCILIATORY LINE HOPING FOR COOPERATION THE NFIB HAS FEW TIES TO THE DEMOCRATIC PARTY AND HAS A RECORD OF OPPOSING MOST DEMOCRATIC CONGRESSIONAL CANDIDATES AFTER PREVAILING AS THE DOMINANT VOICE OF SMALL BUSINESS DURING THE REAGAN AND BUSH YEARS THE GROUP ISN'T INVITED TO THE WHITE HOUSE NEARLY AS OFTEN THESE DAYS THE NFIB'S PRESIDENT HAS ATTENDED TWO SESSIONS AT THE WHITE HOUSE WHEN THE ADMINISTRATION UNVEILED ITS ECONOMIC PLANS BUT JOHN MOTLEY THE FEDERATION'S OUTSPOKEN VICE PRESIDENT AND CHIEF LOBBYIST SAYS I HAVEN'T BEEN INVITED THERE AT ALL MR MOTLEY SAYS HE HAS TALKED WITH OFFICIALS AT THE TREASURY DEPARTMENT AND ELSEWHERE WITHIN CERTAIN CIRCLES WE'RE NOT IN FAVOR IN OTHERS WE'LL CONTINUE TO BE THE LARGEST SMALLBUSINESS ORGANIZATION HE ADDS COMPETITORS OF THE FEDERATION SAY THE GROUP'S LOBBYING STYLE IS PARTLY RESPONSIBLE FOR THE WHITE HOUSE'S COOLNESS THE NFIB FOR EXAMPLE REFUSED TO APPEAR BEFORE THE ADMINISTRATION'S HEALTHCARE TASK FORCE LAST WEEK SAYING IT WANTED TO UNDERSCORE ITS NONNEGOTIABLE POSITION AGAINST FORCING EMPLOYERS TO PROVIDE HEALTH INSURANCE I CALL THEM THE JUSTSAYNO CROWD' SAYS SUSAN HAGER LAST YEAR'S PRESIDENT OF NATIONAL SMALL BUSINESS UNITED WHICH COUNTS 65000 MEMBERS WHEN WE SAY A POLICY HAS A NEGATIVE IMPACT WE COME UP WITH SOLUTIONS ADDS MS HAGER WHO HEADS HER OWN PUBLICRELATIONS FIRM HERE AND IS A DEMOCRATIC PARTY FUNDRAISER JOHN SATAGAJ PRESIDENT OF THE SMALL BUSINESS LEGISLATIVE COUNCIL A COALITION OF 100 TRADE GROUPS ADDS TO SAY NO IS EASY IT SELLS MEMBERSHIPS BUT IT'S HARD TO SEE HOW THAT'S HELPING THE CONSTITUENCY I SERVE SMALL BUSINESS UNITED IS CONSULTED AND INVITED TO THE CLINTON WHITE HOUSE AND THE SMALL BUSINESS LEGISLATIVE COUNCIL TESTIFIED BEFORE THE HEALTHCARE TASK FORCE THE GROUPS SAY THEY OPPOSE A NUMBER OF PRESIDENT CLINTON'S IDEAS INCLUDING TALK OF RAISING THE MINIMUM WAGE AND MANDATED HEALTH INSURANCE BY EMPLOYERS BUT SAY THEY WANT TO WORK WITH THE NEW ADMINISTRATION THE COUNCIL FOR EXAMPLE SAYS IT COULD SUPPORT A HEALTHCOVERAGE MANDATE UNDER CERTAIN CONDITIONS SUCH AS HAVING EMPLOYEES BEAR PART OF THE COST THE WHITE HOUSE ALSO SEEMS TO WANT TO REACH BEYOND TRADITIONAL SMALLBUSINESS GROUPS THE NEW YORKBASED MINORITY SUPPLIER DEVELOPMENT COUNCIL WHICH PROMOTES PURCHASING AGREEMENTS BETWEEN BIG COMPANIES AND MINORITYOWNED FIRMS WILL LEAD A GROUP OF MINORITY BUSINESS ORGANIZATIONS AT A MEETING THIS WEEK WITH ADMINISTRATION OFFICIALS AND BENNIE THAYER CHAIRMAN OF THE NATIONAL ASSOCIATION FOR THE SELFEMPLOYED A GROUP THAT HASN'T BEEN REGULARLY CONSULTED IN THE PAST SAYS HE HAS MET WITH KEY ADMINISTRATION OFFICIALS REGULARLY BUT NEITHER THE WHITE HOUSE NOR CONGRESS IS IGNORING THE NFIB LABELED BY RIVALS AS THE 900POUND GORILLA THE FEDERATION COUNTS MORE THAN 1000 MEMBERS IN A TYPICAL CONGRESSIONAL DISTRICT LAWMAKERS ALSO RECOGNIZE ITS ABILITY TO BACK COMPETING CANDIDATES WITH POLITICALACTION FUNDS BUT HAS THE NFIB'S DEFIANT STANCE REDUCED ITS INFLUENCE MANY POLITICAL ANALYSTS DOUBT IT ANDY IRELAND THE FORMER FLORIDA REPUBLICAN CONGRESSMAN WHO WAS KNOWN AS A SMALLBUSINESS ADVOCATE NOTES THAT MR CLINTON HAS BEEN TOUTING THE IMPORTANCE OF SMALL BUSINESS TO THE ECONOMY THE ADMINISTRATION IS CAUGHT IN ITS OWN TRAP THERE HE SAYS AND FRANK SWAIN A FORMER SMALL BUSINESS ADMINISTRATION CHIEF COUNSEL FOR ADVOCACY ADDS THAT THE NFIB IS JUST TOO BIG TO DISREGARD THEIR INFLUENCE WILL NEVER GO AWAY THEY MAY BE IN THE SHADOWS A BIT NOW BUT THEY WON'T BE FOR FOUR YEARS THE WHITE HOUSE HASN'T YET RUN INTO A TOUGH POLITICAL FIGHT ON CAPITOL HILL WHERE THEY NEED TO TALK TO NFIB THE NFIB SAYS IT TAKES A STAND ON THE MERITS OF EACH ISSUE AND HAS NO STRATEGY OF OPPOSING THE WHITE HOUSE AT EVERY TURN INDEED IT SAYS IT AGREES WITH SOME CLINTON PROPOSALS AND NOTES THAT IT EVEN GAVE THE PRESIDENT ITS GUARDIAN OF SMALL BUSINESS AWARD WHEN HE WAS GOVERNOR OF ARKANSAS BUT MR MOTLEY SAYS WE NEED TO BE TRUE TO OUR MEMBERS AND AN INVITATION TO THE WHITE HOUSE ISN'T WORTH TAKING A POSITION OUR MEMBERS WOULDN'T APPROVE OF OR KEEPING OUR MOUTHS SHUT IF THE COMBATIVE LOBBYIST TALKS TOUGH ABOUT POLITICIANS HE IS EVEN HARSHER TOWARD RIVAL GROUPS THAT CARP ABOUT THE NFIB'S METHODS IF THEY WANT THE INFLUENCE THEY CAN GO OUT AND GET 600000 MEMBERS MR MOTLEY SAYS IF THEY'RE WAGING A WHISPERING CAMPAIGN AGAINST NFIB FINE THE WORM WILL TURN THE SNIPING IS PARTLY A CONSEQUENCE OF THE SHIFTING POLITICAL EQUILIBRIUM THAT COMES WITH HAVING A NEW TEAM AT THE WHITE HOUSE THE US CHAMBER OF COMMERCE TONED DOWN ITS REPUBLICANLEANING POLICY POSITIONS ON THE ECONOMY AND HEALTH CARE PROVOKING THREATS OF RETALIATION BY HOUSE REPUBLICAN LEADERS A SPOKESMAN FOR GEORGIA REP NEWT GINGRICH WHO IS PART OF THE GOP HOUSE LEADERSHIP CHARGES THAT THE CHAMBER OF COMMERCE HAS BEEN FITTED WITH KNEE PADS TO BEG FOR FAVORS FROM THE NEW DEMOCRATIC ADMINISTRATION CHAMBER OFFICIALS DENY THEY ARE KOWTOWING TO MR CLINTON IN SOME CASES SMALLBUSINESS GROUPS COMPETING FOR ATTENTION RISK UNDERCUTTING THEIR OWN LONGTERM INTERESTS AFTER THE WALL STREET JOURNAL REPORTED THAT PRESIDENT CLINTON WOULD NOMINATE NORTH CAROLINA INVESTMENT BANKER ERSKINE BOWLES TO HEAD THE SMALL BUSINESS ADMINISTRATION MS HAGER WROTE THE WHITE HOUSE TO PROMOTE TWO OTHER CANDIDATES INCLUDING NATIONAL SMALL BUSINESS UNITED'S CURRENT PRESIDENT MS HAGER'S LETTER WENT ON TO CLAIM THAT MR BOWLES ISN'T WELLQUALIFIED FOR THE JOB SAYING HE LACKS INVOLVEMENT WITH THE BROAD EXPANSE OF SMALL BUSINESS IN THIS COUNTRY WITH THE AGENCY ITSELF AND WITH THE LEGISLATIVE REGULATORY AND ISSUE HISTORY OF THE SMALLBUSINESS MOVEMENT OVER THE PAST TWO DECADES HOWEVER LOW A PROFILE THE NFIB IS TAKING NOW MR MOTLEY BELIEVES THE ORGANIZATION IS A MAJOR FORCE IN THE SMALLBUSINESS MOVEMENT AND A VOICE THAT WILL BE HEARD YOU GET THINGS DONE IN THIS TOWN BY BEING A PLAYER AND THE NFIB IS A PLAYER I THINK THIS ADMINISTRATION HAS TO FIND THAT OUT 9304070049 930407 INTERNATIONAL BRIEF BURMAH CASTROL PLC SHARE PLACEMENT IS PLANNED TO HELP PAY FOR ACQUISITION BURMAH CASTROL PLC SAID IT EXPECTS TO RAISE 317 MILLION 482 MILLION THROUGH A SHARE PLACEMENT TO PAY FOR THE ACQUISITION OF TRIBOL AN INDUSTRIAL LUBRICANTS MAKER FROM BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC THE BRITISH PETROLEUMPRODUCTS GROUP SAID IT WILL PLACE THE NEW SHARES WITH INSTITUTIONAL INVESTORS AT 705 PENCE 1073 EACH REPRESENTING A 57 DISCOUNT ON THE STOCK'S CLOSING PRICE MONDAY ON THE LONDON STOCK EXCHANGE YESTERDAY BURMAH CASTROL SHARES CLOSED AT 732 PENCE DOWN 16 PENCE TRIBOL OF WOODLAND HILLS CALIF IS PART OF ZENECA LTD WHICH WILL BE SPLIT OFF FROM ICI INTO A SEPARATE COMPANY IN JUNE THE COMPANY HAS 300 EMPLOYEES AT MANUFACTURING PLANTS IN THE US AND GERMANY TRIBOL ALSO HAS OPERATIONS IN CANADA CHILE FRANCE ITALY MEXICO AND SPAIN SALES WERE 53 MILLION IN 1992 PRETAX PROFIT AFTER RESTRUCTURING COSTS WAS 37 MILLION NET ASSETS AS OF DEC 31 TOTALED 21 MILLION 9304070048 930407 WORLD MARKETS TOKYO STOCK PRICES SLIDE 14 ON PROFITTAKING LONDON SHARES FALL PARTLY ON ECONOMIC ANXIETY A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES SLID 14 IN TOKYO TUESDAY AS INVESTORS TOOK PROFITS AFTER RECENT HEFTY GAINS LONDON SHARES FELL PRESSURED BY FUTURES TRADING AND CONCERNS ABOUT BRITAIN'S ECONOMY IN TOKYO WEDNESDAY THE NIKKEI INDEX SPURTED 45206 POINTS TO CLOSE THE MORNING SESSION AT 1993886 TUESDAY'S SETBACK WAS CONSIDERED A MUCHNEEDED CORRECTION CLEARING THE WAY FOR THE NIKKEI TO TEST 20000 SOON AS UNDERLYING SUPPORT REMAINED FIRM BECAUSE OF ANTICIPATION ABOUT A BIG JAPANESE GOVERNMENT SPENDING PACKAGE THE INDEX SOFTENED THROUGH THE SESSION BUT RECOVERED FROM ITS INTRADAY LOW OF 1938671 ON A BOUT OF BUYING BY ARBITRAGERS IN THE FINAL 10 MINUTES LARGECAPITALIZATION SHARES WHICH ATTRACTED KEEN BUYING INTEREST MONDAY WERE SOLD OFF WHILE THE PROFITTAKING TOUCHED ALL SECTORS WITH DOMESTIC INVESTMENT TRUSTS CITED AS HEAVY SELLERS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 66 POINTS TO 28322 WITH DECLINERS OUTPACING ADVANCERS 5442 THE FT 30STOCK INDEX GAVE UP 68 POINTS TO 21899 VOLUME WAS 5384 MILLION SHARES COMPARED WITH 4387 MILLION SHARES A DAY EARLIER PRICES RETREATED AS FUTURES TRADERS PARED THEIR LONG POSITIONS IN A THIN MARKET AHEAD OF THE EASTER HOLIDAY WHICH WILL SHUTTER THE LONDON BOURSE FRIDAY AND MONDAY THE LOW TURNOVER AMPLIFIED DROPS ON THE INDEXES AND INVESTORS GENERALLY WERE CONCERNED THAT BRITISH LENDING RATES MAY HAVE BOTTOMED WHILE SOLID RECOVERY SIGNS HAVEN'T MATERIALIZED A PREMIUM THAT HAD BEEN BUILT INTO STOCKS IN ANTICIPATION OF FURTHER INTERESTRATE REDUCTIONS HAS ERODED AND INVESTORS SPECULATED THAT THE BRITISH GOVERNMENT COULD TURN ITS ATTENTION TO STEADYING INFLATION AND THE POUND STERLING IN FRANKFURT SHARES FIRMED DESPITE POOR CORPORATE EARNINGS NEWS THE DAX 30STOCK INDEX ROSE 671 POINTS TO 166540 THE MARKET BENEFITED SOMEWHAT FROM HIGHER GERMAN BOND MARKET PRICES PARIS STOCKS PUSHED HIGHER FOR A STRONG FINISH AS INVESTORS AWAITED DETAILS THIS WEEK OF HOW THE NEW FRENCH GOVERNMENT PLANS TO IMPLEMENT PROMISED PRIVATIZATIONS AND TAX INCENTIVES TO ATTRACT INVESTMENT IN STOCKS FROM SHORTTERM INTERESTRATE VEHICLES IN AMSTERDAM DESPITE A PULLBACK FROM HIGHS IN THE FINAL MINUTES STOCKS RALLIED ON HOPES THE SAGGING GERMANY ECONOMY WILL LEAD A ROUND OF EUROPEAN INTERESTRATE CUTS SOON THE GAINS ALSO WERE HELPED BY A FIRMER DOLLAR AND A DAYEARLIER RECOVERY IN NEW YORK PRICES IN MILAN WHERE INVESTORS SHRUGGED OFF MORE DEVELOPMENTS IN ITALY'S CORRUPTION SCANDAL STOCKS ADVANCED BOLSTERED BY THE LIRA'S CALMER PERFORMANCE ON FOREIGNEXCHANGE MARKETS AFTER RECENT RECORD LOWS FEARS SUBSIDED THAT THE LIRA'S WEAKNESS MIGHT TRIGGER A LENDING RATE BOOST MADRID SHARE PRICES DECLINED BECAUSE OF A WEAK PERFORMANCE IN THE SPANISH BOND MARKET AS BOTH THE EQUITY AND BOND ARENAS FELT PRESSURE FROM POLITICAL CONCERNS ABOUT THE RULING POLITICAL PARTY SCANDAL INVOLVING ILLICIT FINANCING FOR CAMPAIGNS IN THE LATE 1980S IN ZURICH PRICES ROSE AS MANY PARTICIPANTS SWITCHED TO INTERESTRATE SENSITIVE STOCKS SYDNEY STOCKS WERE DRAGGED DOWN BY A REVERSAL IN GOLD PRICES AND WEAKER MARKETS OVERSEAS AS WELL AS AUSTRALIA'S COMING FOURDAY EASTER WEEKEND HONG KONG SHARES FINISHED NEAR THEIR LOWS ON PROFITTAKING ESPECIALLY BY LOCAL INVESTORS WHILE OVERSEAS PLAYERS WERE SIDELINED AHEAD OF THE FRIDAY HOLIDAY SINGAPORE PRICES VAULTED TO NEW HIGHS ON BUYING OF BLUE CHIPS DESPITE HEAVY PROFITTAKING IN OVERTHECOUNTER ISSUES MANILA STOCKS ROSE PARTLY ON SHORTLIVED EUPHORIA ABOUT THE PHILIPPINE PRESIDENT'S NEW EMERGENCY POWERS TO DEAL WITH AN ENERGY SHORTAGE AND ON CONTINUED POSITIONING AHEAD OF THE HOLY WEEK HOLIDAY SEOUL SHARES CLIMBED AS INVESTORS WERE ENCOURAGED BY REPORTS THE SOUTH KOREAN GOVERNMENT WILL POSTPONE IMPLEMENTATION OF A REALNAME FINANCIAL TRANSACTION SYSTEM UNTIL THE ECONOMY RECOVERS AMONG CORPORATE DEVELOPMENTS IN LONDON FISONS PLUMMETED 25 PENCE OR 13 TO 169 PENCE 257 THE PHARMACEUTICAL COMPANY IS CEASING WORK ON TIPREDANE A TREATMENT OF ASTHMA AND RHINITIS THAT WAS LICENSED FROM BRISTOLMYERS SQUIBB AND HAS BEEN UNDERGOING CLINICAL TRIALS FISONS HAS HAD PROBLEMS WITH PRODUCT RECALLS AND ITS PATENT ON THE ASTHMA DRUG INTAL EXPIRES THIS YEAR BUT BIG SAVINGS ON TIPREDANE COSTS COULD GO TOWARD LICENSING ANOTHER PROVEN DRUG IMPERIAL CHEMICAL INDUSTRIES EASED 3 PENCE TO 1153 1755 AND BURMAH CASTROL LOST 16 OR 21 TO 732 BURMAH CASTROL A PETROLEUM PRODUCTS COMPANY IS RAISING 317 MILLION 482 MILLION THROUGH A SHARE PLACEMENT WITH INSTITUTIONAL INVESTORS TO PAY FOR THE ACQUISITION OF TRIBOL AN INDUSTRIAL LUBRICANTS MAKER FROM ICI TRIBOL OF WOODLAND HILLS CALIF IS PART OF ZENECA WHICH WILL BE SPLIT OFF FROM ICI IN JUNE AND HAS OPERATIONS IN THE US CANADA EUROPE AND SOUTH AMERICA IN PARIS CERUS PLUNGED 32 FRENCH FRANCS OR 34 TO 90 FRANCS 1663 THE HOLDING COMPANY CONTROLLED BY THE ITALIAN INVESTOR CARLO DE BENEDETTI HAD A 1992 LOSS OF 154 BILLION FRANCS 2845 MILLION WIDENING FROM A YEAREARLIER DEFICIT OF 131 BILLION FRANCS AMID FAILURE OF PLANNED ASSET SALES AND PROBLEMS AT THE DUMENIL LEBLE BANKING UNIT CERUS WHICH HAS SET ASIDE 430 MILLION FRANCS TO RECAPITALIZE DUMENIL LEBLE WILL INCREASE THE TOTAL INJECTION TO 13 BILLION FRANCS DUMENIL ACCOUNTED FOR 112 BILLION FRANCS OF CERUS'S 1992 LOSS IN FRANKFURT DAIMLERBENZ SANK 145 MARKS OR 24 TO 58050 MARKS 36397 THE INDUSTRIAL COMPANY PREDICTED EARNINGS WOULD DECLINE IN 1993 FOR THE SECOND CONSECUTIVE YEAR LAST YEAR PROFIT FELL 25 TO 145 BILLION MARKS 9092 MILLION THE MARKET ALSO WAS DISAPPOINTED BY DAIMLER'S NEWLY POSTED 1992 PERSHARE EARNINGS OF 2960 MARKS AT THE BOTTOM END OF EXPECTATIONS YEAREARLIER EARNINGS WERE 5540 MARKS A SHARE HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9304070047 930407 INTERNATIONAL BRIEF DASSAULT AVIATION SA PROFIT CLIMBED 25 IN 1992 DIVIDEND TO BE RAISED 50 DASSAULT AVIATION SA ONE OF FRANCE'S TWO AEROSPACE GROUPS SAID CONSOLIDATED NET INCOME ROSE 25 IN 1992 AND THAT IT IS RAISING ITS DIVIDEND PAYOUT BY 50 THE COMPANY SAID NET INCOME TOTALED 3296 MILLION FRANCS 609 MILLION LAST YEAR UP FROM 2639 MILLION FRANCS IN 1991 REVENUE ROSE 31 TO 164 BILLION FRANCS THE COMPANY SAID IT WILL PAY SHAREHOLDERS A NET DIVIDEND OF SIX FRANCS A SHARE UP FROM THE FOUR FRANCS A SHARE PAID IN 1992 DASSAULT SAID NEW ORDERS BOOKED LAST YEAR CAME TO 2268 BILLION FRANCS AN INCREASE OF ALMOST 90 FROM 12 BILLION FRANCS IN 1991 IT SAID THE INCREASE REFLECTED THE LAUNCH OF THREE NEW PROGRAMS FOR THE MIRAGE 20005 AND RAFALE MILITARY JETS AND THE FALCON 2000 BUSINESS JET THE FRENCH GOVERNMENT CONTROLS 458 OF DASSAULT'S EQUITY AND 547 OF ITS VOTING RIGHTS THE DASSAULT FAMILY OWNS 498 OF THE COMPANY'S CAPITAL BUT ONLY 415 OF VOTING RIGHTS THE REMAINING SHARES ARE HELD BY THE PUBLIC 9304070046 930407 POLITICS & POLICY KING TRIAL NEARS END WITH REMARKS FROM AN OFFICER BY AMY STEVENS AND DAVID J JEFFERSON STAFF REPORTERS OF THE WALL STREET JOURNAL LOS ANGELES TESTIMONY IN THE RODNEY KING CIVILRIGHTS TRIAL CONCLUDED YESTERDAY AFTER JURORS SAW A VIDEOTAPE OF ONE OF THE FOUR ACCUSED POLICE OFFICERS CRITICIZING HIS COLLEAGUES DURING LAST YEAR'S STATE PROCEEDINGS WITH ONLY CLOSING ARGUMENTS AND JURY INSTRUCTIONS REMAINING THE FEDERAL CASE IS EXPECTED TO GO TO THE JURY FRIDAY BOTH GOVERNMENT AND DEFENSE LAWYERS ENDED THEIR REBUTTALS QUICKLY IN A RULING FAVORABLE TO PROSECUTORS JUDGE JOHN DAVIES ALLOWED THEM TO SHOW PORTIONS OF OFFICER THEODORE BRISENO'S STATECOURT TESTIMONY IN WHICH HE BROKE RANKS WITH HIS COLLEAGUES AND ACCUSED THEM OF USING TOO MUCH FORCE DEFENSE LAWYERS HAD OBJECTED TO THE VIDEOTAPE ON VARIOUS GROUNDS PROMPTING LEGAL SKIRMISHES LATE IN THE TRIAL MICHAEL STONE A LAWYER FOR OFFICER LAURENCE POWELL CONCEDED OUTSIDE THE COURTROOM THAT THE TAPED TESTIMONY HAD PROBABLY DONE THE MOST HARM TO HIS CLIENT WHO IS SEEN DELIVERING THE MOST BATON BLOWS ON THE FAMOUS AMATEUR VIDEOTAPE OF MR KING'S BEATING MEANWHILE CIVIC LEADERS MADE PUBLIC APPEALS FOR CALM AND POLICE CHIEF WILLIE WILLIAMS OUTLINED HIS DEPARTMENT'S PLANS TO PREVENT A REPEAT OF LAST YEAR'S VIOLENCE AFTER THE ACQUITTALS ON NEARLY ALL CHARGES IN THE STATE CASE SAYING HE WANTS TO ALLEVIATE THE FEARS AND CONCERNS AND THE HYSTERIA SURROUNDING THE VERDICT IN THE KING CASE AND THE SUBSEQUENT TRIAL OF SEVERAL BLACK MEN WHO ALLEGEDLY BEAT WHITE TRUCK DRIVER REGINALD DENNY DURING THE RIOTING CHIEF WILLIAMS SAID HIS DEPARTMENT IS PREPARED TO FACE ANY UNUSUAL EVENT THAT MAY ERUPT HOWEVER EXCLUDING A MAJOR OCCURRENCE OF VIOLENCE THERE ARE NO PLANS TO CLOSE DOWN THIS CITY IN ANTICIPATION OF ANY PROBLEMS HE SAID WE WANT PEOPLE TO GO ABOUT THEIR NORMAL LIVES MAYOR TOM BRADLEY MADE A PUBLIC APPEAL TO PRESERVE PEACE AND HARMONY IN THE CITY CHIEF WILLIAMS WHO TOOK THE HELM OF THE DEPARTMENT NINE MONTHS AGO PROMISED TO HAVE ALL OFFICERS ON THE STREETS FROM THE TIME THE JURY BEGINS DELIBERATING UNTIL AFTER THE VERDICTS ARE READ THAT WILL MEAN SOME 6000 TO 6500 UNIFORMED OFFICERS ON THE STREETS OVER EACH 24HOUR PERIOD HE SAID OFFICERS WILL BE SPREAD THROUGHOUT THE CITY HE SAID RATHER THAN CONCENTRATED IN NEIGHBORHOODS SUCH AS SOUTH CENTRAL AND KOREATOWN HARD HIT DURING LAST YEAR'S RIOTS IN ADDITION TO SPECIAL UNUSUAL OCCURRENCES TRAINING FOR ITS FORCES THE DEPARTMENT IS EMPLOYING NEW LESSTHANLETHAL TECHNIQUES INCLUDING SPECIAL GAS SPRAYS AND RUBBER BULLETS TO DISPERSE ANY LARGE UNRULY CROWDS HE SAID THE DEPARTMENT IS COORDINATING ITS EFFORTS WITH OTHER LOCAL LAW ENFORCEMENT AGENCIES INCLUDING THE LOS ANGELES COUNTY SHERIFF'S DEPARTMENT AND THE STATE HIGHWAY PATROL CALIFORNIA NATIONAL GUARD TROOPS ALSO WILL BE NEARBY ALTHOUGH THERE IS NO PLAN TO SEND TROOPS INTO THE STREETS UNLESS THERE IS VIOLENCE CHIEF WILLIAMS SAID MAYOR BRADLEY SAID NO DECISION HAS BEEN MADE ABOUT WHETHER TO IMPLEMENT A CITYWIDE CURFEW AS WAS DONE LAST YEAR CITY OFFICIALS ALSO HAVE BEEN DISCUSSING WHETHER TO BAN SALES OF AMMUNITION LOCAL POLITICAL AND RELIGIOUS LEADERS HAVE ASKED JUDGE DAVIES TO DELAY RELEASING THE VERDICTS TO GIVE LAWENFORCEMENT GROUPS EXTRA TIME TO MOBILIZE BUT HE HASN'T SAID WHETHER HE WILL DO SO 9304070045 930407 SHARES OF POLICY MANAGEMENT NOSEDIVE 43 PLUNGE FOLLOWS DISCLOSURE 1STPERIOD RESULTS FELL FAR BELOW EXPECTATIONS BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL COLUMBIA SC SHARES OF POLICY MANAGEMENT SYSTEMS CORP PLUNGED 43 AFTER THE COMPANY DISCLOSED THAT FIRSTQUARTER RESULTS FELL FAR BELOW ITS EXPECTATIONS BECAUSE SEVERAL CONTRACTS DIDN'T CLOSE AS EXPECTED THE STOCK CLOSED AT 47625 OFF 3625 ON VOLUME OF 26 MILLION SHARES DURING THE SESSION THE STOCK'S PRICE FELL TO A LOW OF 37 OFF 56 BEFORE RECOVERING IT OPENED AFTER A DELAY AT 4150 ITS HIGH FOR THE DAY WAS 48 THE COMPANY USUALLY A MODEL OF EARNINGS' PREDICTABILITY SAID LATE MONDAY THAT FIRSTQUARTER REVENUE COULD BE 14 MILLION TO 15 MILLION BELOW ITS EXPECTATION OF 135 MILLION TO 136 MILLION AND THAT PERSHARE EARNINGS COULD FALL 26 CENTS TO 28 CENTS BELOW ITS EXPECTATION OF 70 CENTS A SHARE THE COMPANY ALSO SAID THAT FIRSTQUARTER RESULTS WOULD INCLUDE PRETAX NET GAINS ON INVESTMENT SECURITIES OF ABOUT 28 MILLION POLICY MANAGEMENT WHICH PROVIDES SOFTWARE AND RELATED SERVICES TO THE INSURANCE INDUSTRY SAID SEVERAL CONTRACTS DIDN'T CLOSE AS EXPECTED DURING MARCH AND THAT ITS CONTRACT WITH THE NEW JERSEY MARKET TRANSITION FACILITY IS WINDING DOWN QUICKER THAN ORIGINALLY ANTICIPATED CUSTOMERS HAVE GROWN CAUTIOUS PARTICULARLY THOSE IN THE HEALTHCARE AREA WHO ARE WORRIED ABOUT UNCERTAINTY RELATED TO LEGISLATIVE AND REGULATORY REFORM EFFORTS THE COMPANY SAID POLICY MANAGEMENT OFFICIALS DIDN'T RETURN TELEPHONE CALLS YESTERDAY ANALYSTS QUOTED THE COMPANY AS SAYING ABOUT TWOTHIRDS OF THE DECLINE IN THE FIRST QUARTER WAS RELATED TO ITS HEALTHCARE INSURANCE CUSTOMERS IN ADDITION TO THE DISAPPOINTMENT OF AN EARLY CUTBACK IN THE NEW JERSEY CONTRACT THE COMPANY TOLD ANALYSTS THE PROPERTY AND CASUALTY INSURANCE BUSINESS ALSO WAS WEAK FOR A COMPANY WHOSE LOFTY SHARE PRICE RESIDED LARGELY IN ITS PREDICTABILITY SUCH NEWS WAS DEVASTATING TRADING IN THE COMPANY'S SHARES WAS DELAYED UNTIL 1257 PM YESTERDAY FOR DISSEMINATION OF THE BLEAK NEWS WHEN TRADING RESUMED THE SHARES WHICH HAD CLOSED MONDAY AT 83875 WITH A PRICETOEARNINGS RATIO OF 37 HAD LOST ABOUT HALF THEIR VALUE THIS COMPANY HAS SHOWN CONSISTENT 20 GROWTH IN REVENUE AND EARNINGS SAID RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO THERE WAS A PREMIUM FOR PREDICTABILITY AND STABILITY BUILT INTO THE STOCK PRICE TO HAVE A SURPRISE AT THE END OF THE QUARTER ISN'T WHAT INVESTORS IN THIS STOCK ARE LOOKING FOR MR SHERLUND SLASHED HIS 1993 EARNINGS ESTIMATE TO 250 A SHARE FROM 305 BUT SAID SUFFICIENT DETAILS AREN'T YET AVAILABLE TO MAKE A PRECISE ESTIMATE HE ADDED HOWEVER THE STREET HAS CERTAINLY CONCLUDED THIS ISN'T A ONEQUARTER PROBLEM POLICY MANAGEMENT SAID THAT CERTAIN CONTRACTS THAT DIDN'T CLOSE AS ANTICIPATED ARE EXPECTED TO BE COMPLETED LATER THIS YEAR ADDING THIS APPEARS TO BE LARGELY A TIMING ISSUE IN A STATEMENT G LARRY WILSON THE COMPANY'S CHAIRMAN SAID THE COMPANY IS ENCOURAGED BY THE CURRENT PIPELINE OF PROSPECTIVE NEW BUSINESS HE NOTED THAT ALTHOUGH HE REMAINS CONCERNED ABOUT THE SHORTTERM OUTLOOK BECAUSE OF CURRENT BUSINESS CONDITIONS HE EXPECTS THE COMPANY TO ACHIEVE ITS STRATEGIC OBJECTIVES OVER THE LONG TERM BUT ANALYSTS WERE SKEPTICAL ABOUT A NEARTERM TURNAROUND PARTICULARLY IN THE AREA OF HEALTH CARE THE QUESTION IS WILL THEY BE RUNNING AT HALF SPEED FOR THE BALANCE OF THE YEAR SAID STEPHEN J SHOOK AN ANALYST WITH INTERSTATE JOHNSON LANE THEY COULD COME BACK WITH ANOTHER DISAPPOINTING QUARTER 9304070044 930407 TUESDAY'S MARKETS BONDS REGISTER STRONG GAINS STOCKS RETREAT BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL SPECULATION THAT THE TREASURY DEPARTMENT WILL SCALE BACK SALES OF LONGTERM DEBT SPARKED A POWERFUL RALLY IN THE BOND MARKET PUSHING THE YIELD ON THE BENCHMARK 30YEAR BOND BELOW 7 AGAIN STOCKS SLID AS INVESTORS CONTINUED THEIR ASSAULT ON CONSUMER STOCKS THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 162 POINTS TO 337757 STANDARD & POOR'S 500STOCK INDEX FELL 113 TO 44116 AND THE NASDAQ COMPOSITE INDEX TUMBLED 657 TO 66414 REFLECTING HEAVY SELLING OF TECHNOLOGY STOCKS BONDS WERE PROPELLED BY A STONE & MCCARTHY RESEARCH ASSOCIATES REPORT SPECULATING THAT THE TREASURY MAY CUT BY 50 THE SIZE OF ITS 30YEAR BOND AUCTIONS TO TAKE ADVANTAGE OF LOWER SHORTTERM INTEREST RATES TO PARE GOVERNMENT FINANCING COSTS THE REDUCED 30YEAR SALES WOULD BE OFFSET BY INCREASED SALES OF SHORTTERM TREASURY BILLS DESPITE THE BOND MARKET RALLY DON FINE CHIEF MARKET ANALYST AT CHASE MANHATTAN BANK SAID TRADERS ARE FIXATED ON TOMORROW'S PRODUCER PRICE REPORT WHICH WILL GIVE A BETTER INDICATION OF INFLATIONARY TRENDS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 083 TO 10201 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 289500000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 867 ISSUES ROSE AND 1055 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN THREEQUARTERS OF A POINT OR MORE THAN 750 FOR EACH 1000 FACE AMOUNT TO YIELD 696 9304070043 930407 CLINTON TO TALLY BLOCKED JOBS AS WAY TO SPUR GOP ACTION ON STIMULUS PLAN BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PROMISED TO REVISE HIS ECONOMIC STIMULUS BILL BUT WARNED HE WOULD PUT REPUBLICANS TO THE TEST TO SEE WHETHER THEY ARE COMMITTED TO PUTTING THE AMERICAN PEOPLE BACK TO WORK OR JUST PLAYING POLITICS FRUSTRATED THAT GOP FILIBUSTER TACTICS HAVE SUCCEEDED IN BLOCKING THE 16 BILLIONPLUS MEASURE THE PRESIDENT DECLARED A MINORITY OF SENATORS WHO ALL HAVE JOBS CAN LITERALLY THWART MAJORITY RULE WITH CONGRESS ADJOURNING OFFICIALLY TODAY FOR ITS SPRING RECESS THE SENATE CAN'T VOTE ON THE BILL BEFORE APRIL 20 AND THE ADMINISTRATION MUST USE THE INTERVENING TIME TO MAKE REVISIONS TO WIN OVER MODERATE REPUBLICANS IN AN EARLIER EXCHANGE WITH REPORTERS THE PRESIDENT BLUNTLY SUGGESTED HE WOULD USE THE DEMOCRATS' POLITICAL INFORMATION MACHINERY TO PUT HIS CRITICS ON THE SPOT YOU CAN COUNT HOW MANY PEOPLE THEY ARE GOING TO KEEP OUT OF WORK MR CLINTON SAID YOU WILL KNOW JOB BY JOB HOW MANY THEY'D BE RESPONSIBLE FOR NOT PUTTING TO WORK THE PRESIDENT'S REMARKS PROVOKED A SHARP REBUKE FROM SENATE MINORITY LEADER ROBERT DOLE R KAN AND THE EXCHANGE ILLUSTRATED HOW THE COMING WEEKS ARE A BALANCING ACT OF SORTS FOR THE WHITE HOUSE ON BOTH POLITICS AND SUBSTANCE EVEN AS HE RATCHETS UP PRESSURE ON REPUBLICANS MR CLINTON MUST STRIKE THE RIGHT TONE TO REACH ACROSS PARTY LINES AND WHILE PARING BACK ON THE BILL HE CAN'T AFFORD TO MOVE TOO FAR FROM THE LIBERAL PROLABOR DEMOCRATS WHO ARE MOST SUPPORTIVE OF THE JOBS MEASURE REPUBLICANS ARE DEMANDING CUTS FROM COMMUNITY DEVELOPMENT FUNDS IN THE BILL YET THIS PROGRAM IS ONE THAT HAS AN ACTIVIST CONSTITUENCY AMONG MAYORS AND WHILE THERE IS PRESSURE TO TRIM THE 186 BILLION FOR PELL GRANTS TO LOWINCOME COLLEGE STUDENTS THE PROVISION HAS A STRONG PROTECTOR IN HOUSE APPROPRIATIONS COMMITTEE CHAIRMAN WILLIAM NATCHER D KY AND HAS A RIPPLE EFFECT ON NEXT YEAR'S BUDGET FOR NOT ONLY EDUCATION BUT ALSO LABOR AND HEALTH PROGRAMS THE REVISED PACKAGE WILL LIKELY RELY ON SOME HIGHPROFILE CUTS AND ALSO ON BROADER ACROSSTHEBOARD REDUCTIONS TO ACHIEVE THE REQUIRED SAVINGS THE WHITE HOUSE MET WITH SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD D WVA YESTERDAY IN ANTICIPATION OF THE TALKS AND PRELIMINARY CONTACTS HAVE BEGUN AMONG REPUBLICANS FOR THIS FISCAL YEAR AND 1994 BEGINNING OCT 1 THE ADMINISTRATION WANTS TO EXEMPT AS MUCH OF THE SPENDING AS POSSIBLE FROM STATUTORY BUDGET CAPS BUT IT HAS SIGNALED PRIVATELY THAT IT COULD ABSORB COSTS SPILLING OVER INTO FISCAL 1995 AS PART OF ITS DEFICITREDUCTION PLAN IN OTHER ACTION THE TREASURY DEPARTMENT RESUMED BILL AUCTIONS THIS WEEK AFTER THE PRESIDENT SIGNED LEGISLATION RAISING THE GOVERNMENT'S BORROWING AUTHORITY TO 437 TRILLION THROUGH THE END OF THIS FISCAL YEAR THE 225 BILLION INCREASE WILL SERVE TO FINANCE THE FEDERAL DEBT IT WON FINAL APPROVAL FROM THE SENATE LATE MONDAY NIGHT 9304070042 930407 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL A VESTED INTEREST IN A REFUND PRODUCES INVESTMENT INTEREST THE IRS DECIDES THE 1986 TAX ACT FORBIDS DEDUCTIONS FOR PERSONAL INTEREST COSTS INCLUDING INTEREST PAID ON OVERDUE TAXES BUT IT ALLOWS DEDUCTIONS FOR INVESTMENT INTEREST PAID UP TO A SUM EQUALING NET INVESTMENT INCOME A FILER WE WILL CALL IVAN GOT AN OVERDUE TAX REFUND FROM THE IRS WITH INTEREST OF 100 HE INCLUDED THE 100 IN NET INVESTMENT INCOME OF 275 AND DEDUCTED ALL 250 OF HIS INTEREST PAID ON BORROWINGS FOR INVESTMENT AN IRS AUDITOR AND AN APPEALS OFFICER BALKED ONE DOESN'T INVEST IN THE IRS AND IF INTEREST PAID ON TAXES IS PERSONAL INTEREST EARNED ON REFUNDS MUST BE TOO BUT IN PRIVATE RULING 9307005 THE IRS NATIONAL OFFICE SAYS THE 1986 LAW DEFINES INVESTMENT PROPERTY TO INCLUDE ANYTHING PRODUCING NONBUSINESS INTEREST INCOME SUCH AS A FILER'S PROPERTY RIGHT TO A REFUND THUS IVAN MAY TREAT HIS 100 AS INVESTMENT INCOME AND DEDUCT INVESTMENT INTEREST FROM IT THE 1986 LAW ELIMINATES A NEED TO SHOW AN INVESTMENT MOTIVE FOR OWNING INVESTMENT PROPERTY NOTES ROBERT WILLENS OF LEHMAN BROTHERS NOW THAT'S LEVERAGE FOUR NICKELS ADD UP TO A 27802 TAX BILL GARY B BAUMAN OF KINGMAN ARIZ WHO DREW AN 8037 ANNUAL DISABILITY PENSION FROM SOCIAL SECURITY DROPPED FOUR NICKELS IN A SLOT MACHINE ONE 1988 DAY AND WON 73733 HE TRAVELED BOUGHT A MALL HOME AND A VAN PAID MEDICAL BILLS AND USED UP THE CASH IN A YEAR AND A HALF OH AND HE DIDN'T FILE A 1988 RETURN OR PAY TAX WHY WELL HE HAD ALWAYS HEARD THAT IF YOU'RE ON SOCIAL SECURITY DISABILITY AND YOU HIT A JACKPOT YOU DIDN'T HAVE TO PAY ANY INCOME TAX WELL TAX COURT JUDGE FAY DIDN'T RECOGNIZE ANY LEGAL PRECEDENT IN THAT CITATION WE FIND BAUMAN'S ARGUMENT TO BE MISGUIDED FAY SAID GAMBLING WINNINGS ARE TAXABLE THE JUDGE UPHELD THE IRS'S CLAIM FOR TAX OF 20384 ON BAUMAN'S UNREPORTED 1988 INCOME PLUS PENALTIES TOTALING 7418 FOR NEGLIGENCE FAILURE TO FILE A RETURN AND FAILURE TO PAY ESTIMATED TAXES THE IRS LOSES INTEREST WHEN APRIL 15'S TAX CHECKS LANGUISH IN MAIL BAGS THE IRS REQUIRES ITS 10 CENTERS TO DEPOSIT REVENUE IN BANKS WITHIN 24 HOURS AFTER RECEIPT EXCEPT WHEN THE FINAL RUSH OVERWHELMS THE STAFF BETWEEN APRIL 15 AND MAY 4 1992 THE GENERAL ACCOUNTING OFFICE SAYS TWO CENTERS TOOK AN AVERAGE 62 DAYS TO BAN THE 52 BILLION RECEIVED WITH 22 MILLION PERSONAL RETURNS LOSING 24 MILLION IN INTEREST INCOME SINCE A 1990 REPORT ON DELAYS THE GAO ADDS THE IRS HAS BEEN SLOW TO ADOPT WAYS TO SPEED UP DEPOSITS THE GAO SAYS IT MAY BE WISE TO EXPEDITE HANDLING OF OVERSIZED ENVELOPES AS THE AUSTIN TEXAS CENTER DOES AND OF FORM 4868 REQUESTS FOR FILING EXTENSIONS BECAUSE THEY TEND TO CONTAIN LARGE CHECKS THE GAO SAYS THE IRS COULD HAVE FILERS SEND 4868S AND LARGE CHECKS TO SPECIAL ADDRESSES FOR PROMPT ATTENTION THE TREASURY'S LONGTERM PLANS CALL FOR FILERS TO SEND CHECKS DIRECTLY TO BANKS BY 1996 THE GAO NOTES BUT THE IRS WONDERS WHETHER TAXPAYERS WILL BE WILLING TO MAKE SEPARATE MAILINGS FOR RETURNS AND CHECKS AND TO COMPLY WITH OTHER NEW PROCEDURES TO TEST THE TROUBLE OF DOUBLE MAILINGS THE IRS SENT A SPECIAL 1992RETURN PACKAGE WITH TWO ENVELOPES TO 136000 TAXPAYERS EXPECTED TO FILE SOLEPROPRIETOR BUSINESS OR FARMING SCHEDULES IT ASKED THE FILERS TO MAIL RETURNS TO THE ATLANTA CENTER AND CHECKS TO A SEPARATE ADDRESS THE IRS WILL ANALYZE THE RESPONSES AND DECIDE WHETHER TO EXPAND THE PROGRAM IN 1994 MICHIGAN VOTERS ARE TO DECIDE JUNE 2 WHETHER TO REFORM SCHOOL FINANCING BY LIMITING PROPERTY TAXES AND RAISING THE SALES TAX TO 6 FROM 4 PROPONENT GOV ENGLER EXPECTS TOUGH OPPOSITION TO THIS LATEST OF SEVERAL EFFORTS TO SOLVE SCHOOL AND PROPERTYTAX PROBLEMS THE STATE SMALL BUSINESS ASSOCIATION IS AMONG THE SUPPORTERS SMOKE SIGNALS RISE IN MONTANA'S SENATE SEN TERRY KLAMPE SAYS HIS BILL TO RAISE THE STATE CIGARETTE TAX BY 18 CENTS A PACK DIED BECAUSE APART FROM ANTITAX SENTIMENT THERE IS A HIGHER SHARE OF SMOKERS IN THE UPPER HOUSE 32 THAN IN THE GENERAL STATE POPULATION WHERE THE RATE IS 21 PICK A NUMBER ANY NUMBER BUT DON'T TRY TO FOOL THE IRS WITH IT BUT AFTER THE COUPLE LEARNED THEY WERE BEING AUDITED THEY PUT THE TITLE TO THEIR HOME PAID FOR LARGELY WITH CASH IN THEIR MINOR CHILDREN'S NAMES THE MCCULLOUGHS REFUSED TO SHOW THEIR RECORDS TO OR COOPERATE WITH THE IRS AND WHILE THEY ASKED THE TAX COURT TO REJECT AN IRS CLAIM FOR CIVILFRAUD PENALTIES THEY REFUSED TO STIPULATE ANY FACTS OR FOLLOW OTHER COURT PROCEDURES NOW JUDGE KORNER SAYS THESE ACTIONS TAKEN TOGETHER ARE BADGES OF FRAUD THE JUDGE HAS UPHELD PENALTIES FOR FRAUD AND FAILURE TO PAY ESTIMATED TAXES BRIEFS A HOUSE WAYS AND MEANS PANEL PLANS A HEARING APRIL 15 ON THE IRS'S PROGRAM TO ENTICE NONFILERS TO COMPLY VOLUNTARILY PENNSYLVANIA'S NEW BOOKLET FOR OUTOFSTATE FILERS NEGLECTS TO SAY WHERE TO SEND STATE RETURNS SEEKING REFUNDS 9304070041 930407 SEC WILL VOTE TO ALLOW CREATION OF INTERVAL FUND' NEW YORK THE SECURITIES AND EXCHANGE COMMISSION WILL VOTE TODAY ON A WATEREDDOWN VERSION OF THE INTERVAL FUND THE PROPOSAL WOULD ALLOW THE CREATION OF CLOSEDEND FUNDS THAT COULD PERIODICALLY BUY BACK SOME OF THEIR SHARES AT NET ASSET VALUE OR THE VALUE OF THE UNDERLYING PORTFOLIO OF SECURITIES CLOSEDEND FUNDS INVEST IN STOCKS OR BONDS LIKE REGULAR OPENEND MUTUAL FUNDS BUT THEIR SHARES ARE TRADED ON AN EXCHANGE WHERE THEY OFTEN LANGUISH BELOW THE VALUE OF THE UNDERLYING PORTFOLIO FRUSTRATING SHAREHOLDERS REGULATORS HOPE THAT BY ALLOWING CLOSEDEND FUNDS TO BUY BACK 5 TO 25 OF THEIR SHARES AT REGULAR INTERVALS SUCH FUNDS' SHARES WOULD BE LESS LIKELY TO TRADE AT A STEEP DISCOUNT IT REMAINS TO BE SEEN JUST HOW WORKABLE THIS MAY BE SAYS ROBERT ZUTZ A PARTNER AT LAW FIRM KIRKPATRICK & LOCKHART SIGNIFICANTLY THE SEC PUT OFF VOTING ON PROPOSED RULES THAT WOULD HAVE ALLOWED TWO NEW TYPES OF OPENEND FUNDS WITH RESTRICTIONS ON HOW OFTEN SHAREHOLDERS CAN WITHDRAW THEIR MONEY ONE TYPE OF FUND IN PARTICULAR DREW CRITICISM FROM THE FUND INDUSTRY BECAUSE IT WOULD DELAY MAKING PAYMENTS TO DEPARTING SHAREHOLDERS FOR AS LONG AS A MONTH 9304070040 930407 TECHNOLOGY BIOTECH COMPANIES LAUD SEC DECISION THAT EASES INVESTMENT CURBS ON ICOS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL BIOTECHNOLOGY COMPANIES WITH CASHHUNGRY RESEARCH PROGRAMS ARE HAILING A SECURITIES AND EXCHANGE COMMISSION RULING THAT EASES INVESTMENT RESTRICTIONS ON A YOUNG MEMBER OF THEIR INDUSTRY THE RULING AFFECTS ICOS CORP A SEATTLE BIOTECH COMPANY WITHOUT PRODUCTS OR PROFITS NEEDING TO INVEST ITS CASH TO FINANCE THE RESEARCH AND DEVELOPMENT OF NEW TREATMENTS FOR CHRONIC INFLAMMATORY DISEASES SUCH AS ASTHMA MULTIPLE SCLEROSIS AND RHEUMATOID ARTHRITIS BUT THE 53YEAROLD INVESTMENT COMPANY ACT OF 1940 RESTRICTS OPERATIONS OF COMPANIES WHOSE ASSETS ARE INVESTED IN EQUITIES BY DEEMING THEM INVESTMENT COMPANIES ONE OPTION WAS TO STICK TO TREASURY BONDS AND FORFEIT THE HIGHER INCOME BIOTECH COMPANIES NEED OFTEN HUNDREDS OF MILLIONS OF DOLLARS TO TRANSFORM YEARS OF ARDUOUS TESTTUBE ANIMAL AND HUMAN STUDIES INTO BENEFICIAL HUMAN THERAPIES READY FOR MARKET ICOS APPLIED FOR A PERMANENT EXEMPTION FROM THE ACT A YEAR AGO BUT GOT REBUFFED ON THE GROUNDS THAT IT HAD MINIMAL REVENUE AND ITS ASSETS WERE MAINLY CASH AND CASH EQUIVALENTS A NEW PROPOSAL BACKED BY THE 150MEMBER INDUSTRIAL BIOTECHNOLOGY ASSOCIATION WON A FAVORABLE SEC REVIEW IN AN ORDER DATED MARCH 16 THE AGENCY SAID IT WILL CONSIDER THE USE AND NOT JUST THE COMPOSITION OF ASSETS FOR ANY COMPANY ENGAGED IN BONA FIDE RESEARCH AND DEVELOPMENT ICOS MET THE TEST AND OTHER BIOTECH COMPANIES CALLED IT A HOPEFUL SHOW OF FEDERAL SUPPORT WE'RE VERY PLEASED SAID JANICE LECOCQ CHIEF FINANCIAL OFFICER OF ICOS THE ICOS CASE SETS A PRECEDENT THAT OTHER EMERGING BIOTECH COMPANIES CAN CITE WHAT THIS MEANS IS THAT A BIOTECH CONCERN CAN INVEST IN HIGHYIELDING EQUITIES AND NOT JUST US GOVERNMENT SECURITIES PROVIDED IT IT DOESN'T COUNT INVESTMENT INCOME AS PURE PROFIT BUT PUMPS THE PROCEEDS BACK INTO R&D ICOS SAID THIS IS WHAT THE INDUSTRY HAS BEEN HOPING FOR AND WHAT THE INDUSTRIAL BIOTECHNOLOGY ASSOCIATION HAS BEEN WORKING FOR SAID STEPHEN SHERWIN PRESIDENT OF CELL GENESYS INC A FOSTER CITY CALIF COMPANY ENGAGED IN DEVELOPING HUMAN MONOCLONAL ANTIBODIES TO TREAT DISEASE LIBERALIZED INVESTMENT POLICIES ARE ESSENTIAL FOR BIOTECH COMPANIES TO RAISE THE 250 MILLION TO 500 MILLION NEEDED FROM STARTUP TO THE LAUNCH OF THEIR FIRST PRODUCTS INDUSTRY SOURCES SAID IF THE ICOS CASE HOLDS IT'S GOOD NEWS FOR US SAID HAL S BRODERSON CHIEF EXECUTIVE OFFICER OF GENVEC A GENETHERAPY COMPANY BASED IN ROCKVILLE MD CLEARLY WE'RE NOT INVESTMENT COMPANIES IN BIOTECH YOU HAVE TO RAISE A LOT OF CAPITAL THE INTENT ISN'T TO PROFIT FROM THESE INVESTMENTS BUT TO BUILD BUSINESSES THE SEC'S RULING COULD MEAN SEVERAL HUNDRED THOUSAND DOLLARS ADDITIONAL INVESTMENT INCOME ON A 15 MILLION TO 20 MILLION PRIVATE PLACEMENT SAID JAMES GOWER PRESIDENT OF TULARIK INC OF SOUTH SAN FRANCISCO CALIF AND HIGHERYIELDING INVESTMENTS FOR US R&D COMPANIES COULD ENABLE THEM TO FINANCE THEIR OWN RESEARCH AGENDAS FROM WITHIN SAVING THEM FROM FORCED MERGERS HE ADDED SEC'S COOPERATIVE ATTITUDE SAYING THE ACT NEVER INTENDED THIS REALLY HELPS MR GOWER SAID 9304070039 930407 COMMODITIES CRUDEOIL FUTURES FALL ON NEWS OF KUWAITI LETTER ON OPEC PRODUCTION AND ON TECHNICAL FACTORS BY CAROLYN PHILLIPS STAFF REPORTER OF THE WALL STREET JOURNAL CONTRASTING ASSESSMENTS OF OPEC'S CURRENT PRODUCTION LEVELS SURFACED YESTERDAY BUT OIL MARKETS APPARENTLY CHOSE TO BELIEVE THE MORE BEARISH OF THE TWO CRUDEOIL FUTURES PRICES FELL SHARPLY ON BOTH THE INTERNATIONAL PETROLEUM EXCHANGE IN LONDON AND THE NEW YORK MERCANTILE EXCHANGE PUSHED DOWN BY REPORTS OF A LETTER OF COMPLAINT FROM KUWAIT'S OIL MINISTER TO THE PRESIDENT OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TRADERS ALSO CITED TECHNICAL FACTORS IN THE LETTER ALI ALBAGHLI THE OIL MINISTER ACCUSED OTHER MEMBERS OF THE OIL PRODUCERS GROUP OF FLOUTING FEBRUARY'S PRODUCTION AGREEMENT AT THE FEBRUARY OPEC MEETING KUWAIT HAD WARNED THAT IF OTHER PRODUCERS FAILED TO CURB OUTPUT IT TOO WOULD PUMP MORE KUWAIT'S PORTION OF OPEC'S 236 MILLION BARRELADAY CEILING IS 16 MILLION BARRELS KUWAIT HAS SAID IT HAS PUSHED ITS CAPACITY BACK TO TWO MILLION BARRELS A DAY REBUILDING ITS OIL INDUSTRY AFTER THE DEVASTATION SUFFERED DURING THE 1991 PERSIAN GULF WAR WITH IRAQ MEANWHILE AT AN ENERGY CONFERENCE IN LONDON SEVERAL OPEC OFFICIALS INCLUDING THE GROUP'S PRESIDENT POINTED OUT THAT OPEC PRODUCTION HAS ACTUALLY COME DOWN IN RECENT WEEKS THEY POINTED TO ESTIMATES RELEASED YESTERDAY FROM THE INTERNATIONAL ENERGY AGENCY SHOWING THAT OPEC PRODUCED 244 MILLION BARRELS A DAY IN MARCH DOWN FROM 255 MILLION IN FEBRUARY IN FACT ACCORDING TO ALIRIO PARRA OPEC'S PRESIDENT AND OTHER OPEC OFFICIALS INTERNAL REPORTS BY SOME OPEC MEMBERS PUT PRODUCTION EVEN LOWER THAN THE IEA ESTIMATES THE OPEC LEADERS PRESENTED THAT AS EVIDENCE THAT CRUDE PRICES WILL HOLD FIRM OVER THE SHORT TERM BUT THE BULLISHNESS OF MR PARRA'S STATEMENTS NOTWITHSTANDING MAY CRUDEOIL PRICES FELL 32 CENTS TO 2030 A BARREL IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE SEVERAL MARKET OBSERVERS SAID THE MARKET HAD BEEN POISED FOR A SELLOFF AND THAT NEWS OF THE KUWAITI LETTER SIMPLY TRIGGERED AN OVERDUE TUMBLE IN PRICES THEY ATTRIBUTED MUCH OF THE SLIDE TO TECHNICAL FACTORS THE KUWAITIS WILL HAVE AN OPPORTUNITY TO PURSUE THE ISSUES RAISED IN THEIR LETTER AS EARLY AS MONDAY WHEN OPEC MINISTERS GATHER INFORMALLY AHEAD OF A MINISTERIAL MONITORING COMMITTEE MEETING IN OMAN SET FOR TUESDAY BUT NO OFFICIAL CHANGE IN PRODUCTION ALLOWANCES IS POSSIBLE BEFORE THE GROUP'S JUNE MEETING PETROLEUM PRODUCT PRICES FOLLOWED CRUDE LOWER ALTHOUGH GASOLINE IS BENEFITING SOMEWHAT FROM A SERIES OF REFINERY MAINTENANCE SHUTDOWNS MAY HEATING OIL FELL ONE CENT TO 5595 CENTS A GALLON GASOLINE FOR MAY DELIVERY LOST 036 CENT TO FINISH AT 5984 CENTS A GALLON NATURAL GAS CONTINUED ITS RECENT PRICE RALLY SOMETHING OF A SURPRISE SO LATE IN THE HEATING SEASON MARKET WATCHERS SAID SOME LOCAL TRADERS ARE TAKING ADVANTAGE OF A THIN MARKET TO PUSH PRICES HIGHER IN TECHNICAL TRADING MAY NATURAL GAS GAINED ANOTHER SIX CENTS PER MILLION BRITISH THERMAL UNITS CLOSING AT 2153 A MILLION BTUS IS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET OF NATURAL GAS TRADING CONTINUED TO BE A BIT THIN BECAUSE OF THE PASSOVER AND EASTER HOLIDAYS INDEED SOME TRADERS ARE EXHIBITING CAUTION BECAUSE THE MERC WILL BE CLOSED FRIDAY FOR GOOD FRIDAY OBSERVANCES IN ADDITION SOME TRADERS HELD BACK A BIT BECAUSE OF THE ONEDAY DELAY THIS WEEK OF THE INDUSTRY INVENTORY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE THE API SAID THE DELAY WAS THE RESULT OF A CHANGE IN ITS FORMAT FOR THE DATA IN OTHER COMMODITY MARKETS YESTERDAY COPPER COPPER FUTURES PRICES SANK TO THEIR LOWEST LEVELS SINCE AUGUST OF 1988 THE DECLINE STARTED ON HEAVY OPTIONSRELATED SELLING IN LONDON AND CONTINUED IN THE NEW YORK MARKET WHEN IT OPENED SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE KEY TO THE MARKET'S DECLINE HAS BEEN THE LACK OF DEMAND FOR COPPER FROM JAPAN AND CHINA TRADITIONALLY BIG BUYERS CHINA TYPICALLY NEEDS LARGE QUANTITIES OF COPPER FOR MANUFACTURING BUT AN UNFAVORABLE EXCHANGE RATE BETWEEN CHINA'S CURRENCY THE YUAN AND THE DOLLAR HAS DISCOURAGED BUYING COPPER FOR MAY DELIVERY PLUNGED 205 CENTS TO 9250 CENTS A POUND LIVESTOCK & MEATS PORKBELLY FUTURES PRICES SURGED ON RUMORS THAT 20 MILLION WORTH OF PORK PRODUCTS WAS INCLUDED IN THE AID PACKAGE THAT PRESIDENT CLINTON ANNOUNCED FOR RUSSIA OVER THE WEEKEND AND PRICES ARE EXPECTED TO RISE AGAIN TODAY BECAUSE OF A WEEKLY COLDSTORAGE REPORT RELEASED AFTER TRADING YESTERDAY THAT SHOWED SMALLERTHANEXPECTED MOVEMENT OF PORK BELLIES INTO COLD STORAGE THE REPORT SHOWED NET INWARD MOVEMENT OF 548000 POUNDS OF PORK BELLIES OR UNCURED BACON TRADERS AT THE CHICAGO MERCANTILE EXCHANGE HAD BEEN EXPECTING INWARD MOVEMENT OF 750000 TO 125 MILLION POUNDS SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS PORK BELLIES FOR MAY DELIVERY ROSE 125 CENTS TO 5007 CENTS A POUND SUGAR THE SUGAR MARKET WAS HIT HARD BY CONCERNS THAT LOWQUALITY SUGAR MIGHT BE DELIVERED AGAINST THE MAY CONTRACT RUMORS SWEPT THE TRADING FLOOR AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE THAT LOWGRADE SUGAR FROM SOUTHERN BRAZIL MIGHT BE USED TO MAKE DELIVERY ON SOONTOEXPIRE FUTURES CONTRACTS ANALYSTS SAID SUCH DELIVERY IS UNLIKELY HOWEVER BECAUSE OF DELIVERY RESTRICTIONS AND TAXES AND THE EXCHANGE ISSUED A NEWS RELEASE REMINDING TRADERS OF THE QUALITY STANDARDS REQUIRED FOR DELIVERY OF SUGAR AGAINST ITS FUTURES CONTRACTS NEVERTHELESS SUGAR FOR MAY DELIVERY FELL 059 CENT TO 1145 CENTS A POUND 9304070038 930407 NATIONSBANK TURNS TO STATE LEGISLATURES IN EFFORT TO EXPAND OUTSIDE SOUTHEAST BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL NATIONSBANK CORP IS TAKING ITS RELENTLESS CRUSADE TO BREAK DOWN INTERSTATE BANKING BARRIERS TO A NEW FRONT THE STATE LEGISLATURE A BILL THAT WOULD ALLOW NATIONSBANK AND OTHER NORTH CAROLINA BANKING CONCERNS TO EXPAND OUTSIDE THE SOUTHEAST IS EXPECTED TO BE INTRODUCED IN THE NORTH CAROLINA LEGISLATURE AS EARLY AS FRIDAY NATIONSBANK THE NATION'S FOURTHLARGEST BANK WITH ASSETS OF 118 BILLION HELPED THE STATE BANKING COMMISSIONER DRAFT THE PROPOSAL AND IS LOBBYING HARD FOR THE MEASURE IN CURRENT FORM THE BILL WOULD OPEN NORTH CAROLINA TO RECIPROCAL NATIONWIDE INTERSTATE BANKING IN 1996 NATIONSBANK BASED IN CHARLOTTE NC IS PUSHING FOR SIMILAR LEGISLATION IN OTHER SOUTHEASTERN STATES A MOVE THAT'S NECESSARY TO MODIFY THE RESTRICTIVE REGIONAL BANKING PACT ADOPTED BY THE STATES IN THE MID1980S BUT THE EARLIEST THAT SUCH BILLS WILL COME UP IN THOSE STATES IS NEXT YEAR THIRTYFOUR OTHER STATES ALREADY HAVE ADOPTED NATIONWIDE INTERSTATE BANKING 22 OF WHICH INCLUDING CALIFORNIA AND NEW YORK REQUIRE RECIPROCITY MEANING THEY WILL LET AN OUTOFSTATE BANK INTO THEIR STATE IF THAT BANK'S HOME STATE WILL LET THEIR BANKS IN TOO WHILE GUIDING LEGISLATION THROUGH A DOZEN OR SO STATES IS CUMBERSOME AND DICEY NATIONSBANK'S FOCUS ON THE STATE LEGISLATURES REFLECTS ITS CURRENT FRUSTRATION WITH INACTION IN CONGRESS ON INTERSTATE BANKING THE SIMPLEST WAY TO DEAL WITH INTERSTATE BANKING IS AT THE FEDERAL LEVEL SAYS JOE MARTIN NATIONSBANK'S PRINCIPAL CORPORATE AFFAIRS OFFICER A LOT OF US BELIEVE THAT IF CONGRESS ISN'T GOING TO ACT THE STATES IN THE SOUTH SHOULD DO IT THE NOTION THAT THE SOUTHEAST REGIONAL BANKING PACT HAS OUTLIVED ITS USEFULNESS IS GAINING POPULARITY IN THE REGION A COMMITTEE OF THE SOUTHERN GROWTH POLICIES BOARD FOR EXAMPLE URGED IN A RECENT REPORT THE PROMOTION OF NATIONWIDE BANKING AS A MEANS OF ENHANCING THE COMPETITIVENESS OF THE REGION'S INSTITUTIONS FOR NATIONSBANK THE STATE LEGISLATIVE EFFORT MARKS THE LATEST IN A MULTIPRONG EFFORT TO BREAK OUT OF ITS REGIONAL CONFINES MANY SAY WITH AN EYE TOWARD CALIFORNIA BESIDES ITS CONTINUING PUSH IN CONGRESS FOR INTERSTATE BANKING AND BRANCHING NATIONSBANK HAS AMONG OTHER THINGS BEEN ASSESSING THE LEGAL FEASIBILITY OF EXPANDING INTO CALIFORNIA THROUGH ITS TEXAS OPERATIONS MY VIEW IS THEY'LL FIND A WAY INTO CALIFORNIA LATER THIS YEAR PREDICTS THOMAS H HANLEY AN ANALYST WITH FIRST BOSTON CORP NATIONSBANK REITERATED ITS INTEREST IN CALIFORNIA YESTERDAY BUT SAID IT'S JUST ONE OF SEVERAL IMPORTANT STATES TO WHICH THE COMPANY WANTS ACCESS CALIFORNIA IS OBVIOUSLY AN ATTRACTIVE MARKET MR MARTIN SAID IT'S ON A LIST OF STATES THE BANK ADDED IT HAS NO CURRENT GEOGRAPHIC EXPANSION PLANS BUT RATHER IS FOCUSING ON BUILDING ITS FEEBASED BUSINESS AND MAKING THE MOST OF ITS EXISTING CUSTOMER BASE THE BANKING BILL IN NORTH CAROLINA ALSO HAS THE BACKING OF THE STATE'S OTHER PRINCIPAL LARGE BANKS NOTABLY FIRST UNION CORP ALSO BASED IN CHARLOTTE AND WACHOVIA CORP BASED IN WINSTONSALEM AMONG OTHER THINGS THE BILL WOULD SLASH THE PROPORTION OF DEPOSITS A NORTH CAROLINA BANK MUST HAVE WITHIN THE SOUTHEAST REGION TO MORE THAN 50 FROM THE CURRENT MINIMUM OF 80 9304070037 930407 SLIGHTED GENERAL IS PICKED FOR MAJOR PENTAGON POST WASHINGTON LT GEN BARRY MCCAFFREY AN ARMY OFFICER WHO BECAME WELLKNOWN FOR BEING INSULTED BY SOMEONE AT THE CLINTON WHITE HOUSE WAS NOMINATED FOR ONE OF THE MOST IMPORTANT JOBS IN THE PENTAGON CURRENTLY AN ASSISTANT TO JOINT CHIEFS CHAIRMAN COLIN POWELL THE 50YEAROLD GEN MCCAFFREY WAS NOMINATED TO BECOME DIRECTOR OF STRATEGY PLANS AND POLICY FOR THE JOINT CHIEFS OF STAFF THAT DIRECTORATE IS LIKELY TO PLAY A CENTRAL ROLE IN THE PENTAGON'S REVIEW OF HOW THE US MILITARY SHOULD BE RESHAPED FOR THE POSTCOLD WAR WORLD GEN MCCAFFREY WAS WOUNDED THREE TIMES IN VIETNAM AND LATER COMMANDED THE ARMY'S 24TH MECHANIZED INFANTRY DIVISION IN THE GULF WAR BUT HIS PUBLIC PROMINENCE STEMS FROM A RECENT INCIDENT AT THE WHITE HOUSE WHILE WAITING THERE FOR A MEETING HE ATTEMPTED TO STRIKE UP A CONVERSATION WITH A YOUNG WOMAN WHO HE THOUGHT WAS A PRESIDENTIAL AIDE THE WOMAN CUT OFF THE CONVERSATION EXPLAINING SHE DIDN'T TALK TO MILITARY PEOPLE AFTER THE INCIDENT WAS REPORTED IN US NEWS & WORLD REPORT IT BECAME TO MANY PEOPLE A SYMBOL OF THE ADMINISTRATION'S INSENSITIVITY TO THE MILITARY ROSS PEROT RECENTLY CITED THE INCIDENT IN CRITICIZING THE PRESIDENT MR CLINTON HAS PLAYED DOWN ITS SIGNIFICANCE IN A LETTER PRINTED IN THE WALL STREET JOURNAL YESTERDAY GEN MCCAFFREY SAID HIS RELATIONSHIP WITH THE ADMINISTRATION IS MUTUALLY RESPECTFUL AND COOPERATIVE I HAVE FACED ZERO ANIMOSITY IN MY DEALINGS WITH A BROAD RANGE OF OFFICIALS 9304070036 930407 BUSINESS BRIEF DUTY FREE INTERNATIONAL INC FIRM AND JAN BELL SET PLAN INVOLVING TESTMARKETING DUTY FREE INTERNATIONAL INC AND JAN BELL MARKETING INC SAID THEY PLAN TO TESTMARKET PRODUCTS AND CONCEPTS OF EACH OTHER DURING THE TEST PERIOD JAN BELL A SUNRISE FLA WHOLESALER OF JEWELRY AND PERSONAL ACCESSORIES WHOSE MAIN CUSTOMERS ARE DISCOUNT RETAILERS WILL TAKE ORDERS FOR DUTYFREE LIQUOR AND TOBACCO PRODUCTS AT PRICE CLUBS THAT IT SUPPLIES NEAR THE MEXICAN BORDER DUTY FREE INTERNATIONAL RIDGEFIELD CONN WILL SUPPLY AND DELIVER THE GOODS FOR THOSE ORDERS AT ITS BORDER STORES DUTY FREE ALSO WILL MARKET JAN BELL JEWELRY AT SOME OF ITS BORDER OUTLETS THE TESTS WILL RUN FOR A YEAR WITH A VIEW TO EXPANDING THE ARRANGEMENTS AFTER THAT FOR FIVE YEARS THE COMPANIES SAID DUTY FREE OPERATES DUTYFREE STORES ALONG THE US BORDERS WITH CANADA AND MEXICO AND OPERATES DUTY FREE AND RETAIL STORES IN US AIRPORTS IT ALSO SUPPLIES DUTYFREE MERCHANDISE TO FOREIGN DIPLOMATS AND OTHERS 9304070035 930407 WHAT'S NEWS BUSINESS AND FINANCE BOND PRICES RALLIED ON SPECULATION THAT THE TREASURY WILL SCALE BACK SALES OF LONGTERM DEBT THE 30YEAR BOND'S PRICE SURGED MORE THAN 3/4 POINT PUSHING ITS YIELD BACK BELOW 7 MOST STOCKS FELL SLIGHTLY BUT NASDAQ SHARES FELL SHARPLY AS TECHNOLOGY STOCKS TUMBLED THE DOLLAR ROSE PHILIP MORRIS'S PLAN TO REDUCE THE PRICE OF MARLBORO CIGARETTES BY AS MUCH AS 40 CENTS A PACK IS LIKELY TO IMPROVE THE PROSPECTS FOR A SHARP INCREASE IN FEDERAL TAXES ON TOBACCO CLINTON PROMISED TO REVISE HIS 16 BILLIONPLUS ECONOMICSTIMULUS PROPOSAL IN RESPONSE TO GOP OBJECTIONS BUT THE PRESIDENT INDICATED HE WILL PUT POLITICAL PRESSURE ON REPUBLICANS IF THEY CONTINUE TO BLOCK THE BILL IBM ADOPTED UNCHARACTERISTICALLY AGGRESSIVE ACCOUNTING METHODS IN THE MID1980S THAT MAY HAVE HELPED THE COMPUTER MAKER DELAY REPORTING WEAK RESULTS THE CHANGES WEREN'T ILLEGAL AND IBM DEFENDS THEM AS PRUDENT IBM HELD SALARY TALKS WITH TWO CANDIDATES INCLUDING ALLIEDSIGNAL'S LAWRENCE BOSSIDY BEFORE HIRING LOUIS GERSTNER AS CHAIRMAN AND CEO GENERAL MOTORS EXPECTS TO INCREASE ITS PRODUCTION PLANS IN THE MONTHS AHEAD AND TO IMPROVE ITS MARKET SHARE THIS YEAR THE CAR MAKER INTENDS TO BROADEN ITS EXPERIMENT WITH VALUE PRICING DESIGNED TO MINIMIZE HAGGLING BETWEEN DEALERS AND CUSTOMERS GM COULD FIX FOR A RELATIVELY SMALL COST THE PURPORTED SAFETY PROBLEMS OF THE PICKUP TRUCKS IT BUILT WITH SIDEMOUNTED GASOLINE TANKS CONSUMER ADVOCATES SAY THE COMPANY DISAGREES OPEC'S OIL OUTPUT FELL SHARPLY IN MARCH ESTIMATES INDICATE BUT CRUDE FUTURES PRICES DECLINED YESTERDAY ADVANCED MICRO DEVICES POSTED UNEXPECTEDLY STRONG FIRSTQUARTER PROFIT AMID HEAVY OVERSEAS DEMAND FOR ITS CLONE OF INTEL'S 386 CHIP AMD'S STOCK PRICE JUMPED 125 TO 2350 OTHER SEMICONDUCTOR STOCKS ALSO ROSE POLICY MANAGEMENT SYSTEMS STOCK PLUNGED 3625 OR 43 TO 47625 AFTER THE SOFTWARE COMPANY SAID FIRSTQUARTER PROFIT FELL FAR BELOW EXPECTATIONS MORGAN STANLEY SLASHED THE PAY OF THREE TOP EXECUTIVES BY 20 IN THE LATEST YEAR DESPITE RECORD EARNINGS THE SECURITIES FIRM CITED A DECLINING RETURN ON SHAREHOLDER EQUITY FOR THE PAY CUT IBM OFFERED TO BUY ONE OF FRANCE'S BIGGEST COMPUTER SOFTWARE AND SERVICES COMPANIES FOR 4656 MILLION DAIMLERBENZ'S PROFIT SANK 25 LAST YEAR AS ITS MERCEDESBENZ AUTO UNIT RECORDED AN OPERATING LOSS NATIONSBANK IS LOBBYING NORTH CAROLINA'S LEGISLATURE FOR A BILL THAT WOULD ALLOW THE CHARLOTTEBASED BANK TO EXPAND OUTSIDE THE SOUTHEAST CHEVRON SIGNED PAPERS CREATING A JOINT VENTURE TO DEVELOP HUGE OIL FIELDS IN THE REPUBLIC OF KAZAKHSTAN THE BIOTECHNOLOGY INDUSTRY APPLAUDED AN SEC RULING THAT COULD MAKE IT EASIER FOR YOUNG COMPANIES TO INVEST CASH TO HELP FINANCE THEIR RESEARCH TOKYO STOCKS SLID 14 TUESDAY AS INVESTORS TOOK PROFITS THE NIKKEI INDEX DROPPED 27266 POINTS TO 1948680 LONDON SHARE PRICES FELL PRESSURED BY CONCERNS ABOUT BRITAIN'S ECONOMY BONDS LEHMAN BROTHERS TREASURY INDEX 499822 UP 3100 COMMODITIES OIL 2030 A BARREL OFF 32 CENTS DOW JONES FUTURES INDEX 12607 OFF 131 SPOT INDEX 12342 OFF 037 DOLLAR 11403 YEN UP 033 16120 MARKS UP 00172 9304070034 930407 BUSINESS BRIEF CMS ENERGY CORP FIRM POSTS 4THQUARTER LOSS TAKES CHARGE TO END DISPUTE CMS ENERGY CORP REPORTED A FOURTHQUARTER LOSS OF 372 MILLION OR 466 A SHARE AFTER TAKING A 343 MILLION CHARGE RELATED TO A SETTLEMENT OF LONGSTANDING DISPUTES WITH STATE REGULATORS AND ITS 49OWNED MIDLAND COGENERATION VENTURE IN THE 1992 FOURTH QUARTER THE DEARBORN MICH COMPANY HAD A LOSS OF 128 MILLION OR 161 A SHARE OPERATING REVENUE TOTALED 843 MILLION UP 16 FROM 728 MILLION THE SETTLEMENT RESOLVES DISPUTES AND LITIGATION THAT AROSE FROM CONFLICTS OVER THE AMOUNT OF ENERGY CMS ENERGY'S CONSUMERS POWER UNIT GETS FROM THE VENTURE AND THE PRICE IT PAYS CMS ENERGY SAID FURTHERMORE THE SETTLEMENT SUBSTANTIALLY ELIMINATES THE EARNINGS IMPACT IN 1993 AND BEYOND OF THE UNDERCOLLECTION IN CONSUMERS POWER'S RATES FOR POWER PURCHASED FROM MIDLAND THE 343 MILLION WRITEOFF WAS LARGER THAN CMS ENERGY'S EARLY FORECASTS THAT IT WOULD TAKE A 200 MILLION CHARGE RELATED TO THE SETTLEMENT THE LARGER WRITEOFF IS THE RESULT OF REVISIONS BY MICHIGAN PUBLIC SERVICE COMMISSION TO CMS ENERGY'S MOST RECENT PROPOSED SETTLEMENT 9304070033 930407 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY COMMISSION IS EXPECTED TO WATER DOWN ITS PLAN FOR FREER COMPETITION IN BASIC TELEPHONE SERVICES THE COMMISSION STAFF WANTS TO ELIMINATE MONOPOLIES ON ALMOST ALL VOICE SERVICES AS OF JAN 1 1998 BUT INDUSTRY OFFICIALS SAID THE STAFF MAY DROP AN IDEA TO ALLOW COMPETITION FOR CALLS BETWEEN EC COUNTRIES STARTING IN 1996 AS NOW PROPOSED PRIVATE COMPANIES COULD LEASE LINES FROM NATIONAL PHONE COMPANIES AND OFFER RIVAL SERVICES BY 1996 THE EC WOULD CONSIDER LETTING PRIVATE COMPETITORS BUILD THEIR OWN NETWORKS ADOPTION OF THE PLAN EVEN WITHOUT THE INTERIM STAGE WOULD BENEFIT MAJOR USERS OF EUROPEAN PHONE SERVICES MORE COSTLY THAN THOSE IN THE US COMMISSION APPROVAL LATER THIS MONTH WOULD SEND THE PROPOSAL FOR A MAY VOTE BY EC MEMBER STATES WHICH COULD DILUTE IT FURTHER BEFORE FINAL APPROVAL JAPANESE AUTO MAKERS' PURCHASES OF USMADE AUTO PARTS AVERAGED 1 BILLION A MONTH IN LAST YEAR'S FIRST HALF THE JAPANESE INDUSTRY'S TRADE GROUP SAID THE US PARTS PURCHASES ROSE TO 105 BILLION IN 1991 FROM 249 BILLION IN 1986 THE GROUP RELEASED THE FIGURES FOLLOWING REPORTS THAT TOP US TRADE OFFICIALS WERE CONCERNED THAT JAPAN'S MARKETEXPANSION EFFORTS WERE LAGGING DESPITE THE ECONOMIC SLUMP THE JAPANESE COMPANIES HOPE TO MAINTAIN A PACE TO BOOST THEIR US PARTS BUYING TO 19 BILLION NEXT YEAR IN THE FIRST CLIMB SINCE NOVEMBER HOME PRICES IN BRITAIN LAST MONTH ROSE A SEASONALLY ADJUSTED 12 FROM FEBRUARY WHEN THEY FELL 02 MARCH PRICES FELL 56 FROM A YEAR EARLIER SLOWING FROM A 72 DROP FOR FEBRUARY THE MORTGAGE LENDER HALIFAX BUILDING SOCIETY SAID THE DATA SIGNALED A RETURN TO PRICE STABILITY SOONER THAN EXPECTED THOUGH A SUSTAINED UPTURN ISN'T EXPECTED FOR SEVERAL MONTHS PROSPECTIVE BUYERS HAVE BEEN DETERRED BY FEAR OF LOSING THEIR JOBS IN BRITAIN'S RECESSION HOME PRICES LAST MONTH AVERAGED 67457 102670 UP 16 FROM FEBRUARY BUT DOWN 24 FROM A YEAR EARLIER GERMANY'S UNEMPLOYMENT RATE FELL LAST MONTH BUT SEASONALLY ADJUSTED DATA FOR THE WESTERN REGION SHOW THE COUNTRY'S ECONOMY HASN'T COME CLOSE TO BOTTOMING OUT THE WESTERN JOBLESS RATE DECLINED TO 8 IN MARCH FROM 83 IN FEBRUARY BUT ADJUSTED ROLLS SWELLED 56000 AFTER GROWING 47000 IN FEBRUARY EASTERN GERMAN UNEMPLOYMENT FELL TO 157 FROM 162 THOUGH MAINLY FROM IMPROVED PRODUCTIVITY RATHER THAN JOB CREATION ADJUSTED DATA WEREN'T PROVIDED IF THE SEASONAL TREND CONTINUES ADDITIONAL JOB LOSSES THIS YEAR COULD TOTAL 400000 IN THE WESTERN REGION AND AS MUCH AS 250000 IN THE EAST THE PHILIPPINES AND THE US REACHED AGREEMENT ON PROTECTING INTELLECTUAL PROPERTY THE PHILIPPINES HOPES THE ACCORD WILL GET IT REMOVED FROM THE US LIST OF COUNTRIES WITH WEAK OR DEFICIENT ENFORCEMENT OF LAWS AGAINST PIRACY OF FOREIGN TRADEMARKS COPYRIGHTS AND PATENTS THE LISTING MANDATED NEGOTIATIONS UNDER THREAT OF POSSIBLE US SANCTIONS CHINA'S RAPID ECONOMIC GROWTH THREATENS TO REIGNITE INFLATION WORLD BANK PRESIDENT LEWIS T PRESTON SAID IN BEIJING THE CURRENT PACE WOULD MAKE 1993 GROWTH AT LEAST EQUAL LAST YEAR'S 128 EXPANSION THE WORLD BANK BELIEVES A SUSTAINABLE FAVORABLE RATE IS BETWEEN 75 AND 8 A COOLING THAT CHINESE LEADERS FAVOR BUT MAY FIND HARD TO ACHIEVE THE ECONOMY TOOK OFF A YEAR AGO WITH MARKETSTYLE REFORMS THAT LED TO EXPLOSIVE FOREIGN INVESTMENT AND TRADE AND HIGHER LIVING STANDARDS THE 1992 INFLATION RATE WAS 64 BUT ABOUT TWICE THAT IN CHINESE CITIES INFLATION LAST SOARED IN 1988 CONTRIBUTING TO LABOR UNREST TURKEY MUST LOWER TAXES AND CUT SPENDING TO IMPROVE ITS INVESTMENT CLIMATE AND ACHIEVE SUSTAINED GROWTH THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SAID IT ALSO URGED DEREGULATION OF FINANCIAL MARKETS AND SPEEDIER SELLOFFS OF STATE ENTERPRISES THE PARISBASED GROUP OF 24 INDUSTRIAL NATIONS SAID TURKEY ONE OF ITS POOREST MEMBERS RISKS UNDERMINING BUSINESS CONFIDENCE UNLESS IT EXERTS BUDGET CONTROLS AND TIGHTENS MONETARY POLICY WHICH COULD SLASH INFLATION AND STABILIZE THE ECONOMY TURKEY'S INFLATION RATE WHICH HOVERED BETWEEN 66 AND 70 LAST YEAR WON'T IMPROVE MUCH THIS YEAR AND MAY ONLY DECLINE TO 63 NEXT YEAR THE OECD PREDICTED URGING THE CENTRAL BANK TO USE EXCHANGE RATES AS A TOOL TO FIGHT PRICE INCREASES BY MINIMIZING CURRENCY DEVALUATION THE OECD ALSO CALLED ON THE GOVERNMENT TO HOLD DOWN WAGE INCREASES AND TO BOOST EDUCATION SPENDING GROSS DOMESTIC PRODUCT WHICH ROSE AN INFLATIONADJUSTED 53 LAST YEAR MAY SLOW TO 45 THIS YEAR AND HIT 5 NEXT YEAR GERMANY'S METAL WORKERS UNION WHICH WANTS A PROMISED 26 PAY INCREASE FOR EASTERN GERMAN MEMBERS TO BRING THEIR WAGES TO 82 OF WESTERNREGION LEVELS SET AN APRIL 19 STRIKE DEADLINE AFTER EMPLOYERS REJECTED A COMPROMISE TO DELAY NATIONWIDE PAY EQUALIZATION FOR NINE MONTHS UNTIL 1995 PRAGUE'S STOCK EXCHANGE OPENED BUT JUST SEVEN CZECH SECURITIES WERE AVAILABLE FOR TRADING AND ONLY ONE MET QUOTATION RULES AS THE REPUBLIC'S EMERGING CAPITAL MARKETS ARE MIRED IN DISPUTES FROM CZECHOSLOVAKIA'S JAN 1 BREAKUP 9304070032 930407 BARGAIN HUNTERS STRUCK GOLD LEAVING MOST MANAGERS IN DUST IN FIRST QUARTER BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL IT WAS A GREAT QUARTER FOR BARGAIN HUNTERS BUT NOT TERRIFIC FOR MOST MONEY MANAGERS MANY OF THE MONEY MANAGERS WHO TURNED IN THE BEST INVESTMENT PERFORMANCES IN 1993'S FIRST QUARTER WERE THOSE WHO BOUGHT THE STOCK MARKET'S EQUIVALENT OF STRAW HATS IN THE WINTER IN HOPES THESE STOCKS' VALUE WOULD EVENTUALLY RISE THESE SOCALLED VALUE INVESTORS MADE A BUNDLE DURING THE FIRST QUARTER BY INVESTING IN BANK AND INSURANCE STOCKS FOR EXAMPLE TWO SECTORS THAT WERE OUT OF FAVOR UNTIL RECENTLY ACCORDING TO A SURVEY OF 678 MONEY MANAGERS BY CDA INVESTMENT TECHNOLOGIES INC SOME OF THE TOP 20 MANAGERS ALSO PROFITED BY INVESTING IN GOLD STOCKS OVERALL HOWEVER MANAGERS' INVESTMENT PERFORMANCE LAGGED BEHIND THE MARKET ON AVERAGE THEY SHOWED RETURNS OF 37 COMPARED WITH A RETURN OF 44 FOR THE STANDARD & POOR'S 500STOCK INDEX WITH DIVIDENDS REINVESTED CDA TRACKS THE PERFORMANCE OF MONEY MANAGERS BASED ON THEIR STOCK HOLDINGS AT THE BEGINNING OF THE QUARTER ITS FINDINGS AREN'T EXACT BECAUSE THEY DON'T INCLUDE ANY CHANGES IN PERFORMANCE FROM TRADING DURING THE QUARTER CASH HELD OR OTHER INVESTMENT TECHNIQUES SUCH AS SHORTSALES OF STOCKS THE TROUBLE FOR MONEY MANAGERS DURING THE FIRST QUARTER WAS THAT NO GROUP OF STOCKS EMERGED AS A SUREFIRE BET WITH NEARFLAT RETURNS FOR BOTH THE S&P 500 AND THE NASDAQ COMPOSITE INDEX WHICH HAD A TOTAL RETURN OF 23 INVESTORS WERE HARDPRESSED FOR WINNING STOCK INVESTMENT STRATEGIES THOSE WHO PROFITED SOUGHT OUT INDIVIDUAL STOCKS WITHIN SECTORS POISED FOR A COMEBACK HOWEVER A NUMBER OF INVESTORS DID WELL BY BEING NIMBLE TRADERS GLICKENHAUS & CO A NEW YORK MONEY MANAGEMENT FIRM THAT OVERSEES 1 BILLION POCKETED QUICK TRADING PROFITS BY BUYING AMERICAN EXPRESS CO AND EASTMAN KODAK CO WHEN THEIR STOCK PRICES PLUMMETED AND SELLING THE STOCKS SEVERAL WEEKS LATER AS THE COMPANIES ANNOUNCED OVERHAULS IN MANAGEMENT SAID SETH GLICKENHAUS MR GLICKENHAUS WHOSE RETURN FOR THE QUARTER TOTALED 15 BY HIS ESTIMATE COMPARED WITH CDA'S REPORT OF 244 SAID HE REGISTERED EVEN BIGGER INVESTMENT RETURNS ON TWO INSURANCE HOLDINGS PRIMERICA CORP AND CONSECO INC PRIMERICA HAS MORE THAN DOUBLED IN PRICE TO 4425 AT YESTERDAY'S CLOSE SINCE HE BOUGHT IT HE SAID WHILE CONSECO A BELEAGUERED PROPERTY AND CASUALTY INSURER HAS QUADRUPLED SINCE HIS PURCHASE MR GLICKENHAUS WHO IS A VALUE INVESTOR SAYS HE BEGAN BUYING SHARES OF PHILIP MORRIS COS ON MONDAY SINKING 15 MILLION INTO THE STOCK HE SAID HIS INVESTMENT FIRM RANKED SECOND AMONG THE MANAGERS SURVEYED FOR THE FIRST QUARTER FIRST FOR THE 12 MONTHS ENDING IN MARCH AND THIRD FOR BOTH THE THREE AND FIVE YEAR PERIODS STUDIED I PERFORM WAY ABOVE MY POTENTIAL HE SAID ANOTHER FIRM AMONG THE TOP 20 PERFORMERS DURING THE QUARTER WAS COMSTOCK PARTNERS IN NEW YORK WHICH REGISTERED A RETURN OF 171 EDWARD LESCOWICZ CHIEF FINANCIAL OFFICER SAID THE FIRM SHOWED THOSE RESULTS MAINLY BECAUSE IT DEVOTED ABOUT 300 MILLION OF ITS 1 BILLION PORTFOLIO TO GOLD STOCKS ONE YEAR AGO WHILE THE STRATEGY HAS BEGUN TO PAY OFF RECENTLY THE GOLD INVESTMENT CAUSED COMSTOCK'S INVESTMENT PERFORMANCE TO TAKE A PLUNGE DURING LAST YEAR'S FOURTH QUARTER WHEN THE VALUE OF GOLD SHARES FELL MR LESCOWICZ SAID THE FIRM'S RESULTS WERE BETTER THAN REPORTED BY CDA BECAUSE IT HAD SOLD SHARES OF PHILIP MORRIS SHORT BEFORE FRIDAY'S SELLOFF IN THE STOCK HE DECLINED TO GIVE DETAILS ON THE SIZE OF THE SHORT POSITION RB HAAVE ASSOCIATES INC A 130 MILLION NEW YORK MONEY MANAGER RANKED THIRD FOR THE QUARTER WITH A RETURN OF 229 RONALD HAAVE SAID HIS INVESTMENT FIRM MADE A PROFIT DURING THE FIRST QUARTER THROUGH HIS HOLDINGS OF FIRST CHICAGO CORP AND BOISE CASCADE CORP BOTH OF WHICH HE BOUGHT RECENTLY AND SOLD QUICKLY AS THE STOCK PRICES ROSE NOW HE SAYS HE IS A NET SELLER OF STOCKS AND IS PUTTING THE PROCEEDS INTO CASH AND GOLD STOCKS HERE ARE TOPPERFORMING STOCK PORTFOLIOS AMONG MONEY MANAGERS FOR VARIOUS PERIODS AS REPORTED BY CDA THE PERFORMANCE NUMBERS ARE CUMULATIVE AND SHOWN IN TOTAL RETURN WHICH INCLUDES PRICE CHANGES AND DIVIDENDS 9304070031 930407 INTERNATIONAL BRIEF THOMSONCSF SA FRENCH CONCERN'S EARNINGS SHRINK WITH DEFENSE MARKET FRENCH DEFENSE ELECTRONICS GROUP THOMSONCSF SA BURDENED BY ITS STAKE IN MONEYLOSING CREDIT LYONNAIS AND HEAVY RESTRUCTURING COSTS POSTED A 35 DROP IN NET INCOME FOR 1992 TO 152 BILLION FRANCS 281 MILLION FROM 235 BILLION FRANCS THE RESULT LOWER THAN ANALYSTS HAD EXPECTED WAS ACCOMPANIED BY A SURPRISE CUT IN THE NET DIVIDEND PER SHARE TO SIX FRANCS FROM 68 FRANCS THOMSONCSF'S 155 STAKE IN STATECONTROLLED LENDER CREDIT LYONNAIS YIELDED A LOSS LAST YEAR OF 256 MILLION FRANCS IN 1991 THE CREDIT LYONNAIS CONTRIBUTED 556 MILLION FRANCS TO THOMSONCSF'S PROFIT 9304070029 930407 BUSINESS BRIEF CYPRUS MINERALS CO COMPANY SAYS HEAVY RAINS REDUCED FIRSTQUARTER NET CYPRUS MINERALS CO DENVER SAID IT EXPECTS THIS WINTER'S RECORD RAINS IN THE SOUTHWEST WHICH DISRUPTED ITS OPERATIONS TO REDUCE FIRSTQUARTER EARNINGS BY 23 MILLION THE MINERAL RESOURCES EXPLORATION CONCERN ALSO SAID IT SOLD ONEFOURTH OF ITS BANKRUPTCYCOURT CLAIM AGAINST LTV CORP AND WILL RECORD A GAIN OF 16 MILLION ON THE SALE CYPRUS WAS A MAJOR SUPPLIER OF COAL TO LTV AND HAS BEEN A CREDITOR IN THAT COMPANY'S CHAPTER 11 BANKRUPTCYLAW CASE WHICH WAS FILED IN 1986 THE COMPANY SAID IT EXPECTS FIRSTQUARTER EARNINGS TO BE NEAR BREAKEVEN BEFORE ACCOUNTING FOR THE GAIN AND DESPITE THE EXPECTED EARNINGS REDUCTION IN THE 1992 FIRST QUARTER CYPRUS HAD A NET LOSS OF 5 MILLION OR 22 CENTS A SHARE INCLUDING A RESTRUCTURING CHARGE OF 192 MILLION OR 49 CENTS A SHARE IN ADDITION THE COMPANY SAID IT SOLD ITS INTEREST IN A MEXICAN ZINC OPERATION THE SALE WON'T SIGNIFICANTLY AFFECT EARNINGS THE COMPANY SAID CYPRUS ALSO REDUCED ITS COPPER PRODUCTION TARGET FOR 1993 TO 675 MILLION POUNDS FROM 700 MILLION POUNDS IN PART BECAUSE OF THE RAINRELATED LOSS IN THE FIRST QUARTER OF 20 MILLION POUNDS OF PRODUCTION THE COMPANY SAID IT HAS FILED AN INSURANCE CLAIM FOR THE DAMAGE BUT CAN'T ESTIMATE HOW MUCH IT MIGHT RECOVER 9304070028 930407 MARKETING & MEDIA ADVERTISING CAMPAIGNS THAT ARE REPETITIVE KEEP ON GOING IN VIEWERS' MINDS BY KEVIN GOLDMAN WHEN DOES ENOUGH BECOME ENOUGH ALREADY A LOT OF MINDS ON MADISON AVENUE SEEM TO THINK THE ANSWER IS NEVER SOME ADVERTISING CAMPAIGNS JUST KEEP ON GOING AND GOING AND GOING TO STEAL A MUCHREPEATED REDUNDANCY FROM ONE OF THEM THEY GO ON FAR TOO LONG FOR SOME TASTES THE RELENTLESS CAMPAIGN FOR DURACELL BATTERIES USING AN ENDLESS SUPPLY OF CUSTOMIZED TOY FIGURES HAS RUN ON FOR ALMOST A DECADE NOW 26 ADS STARRING BATTERYOPERATED ICE SKATERS DANCERS BOXERS HONEYMOONERS JOGGERS DRAG RACERS GUNFIGHTERS TAXI DRIVERS AD INFINITUM ENOUGH ALREADY BUT THE BATTERY MAKER AND ITS AD AGENCY OGILVY & MATHER SEE NO REASON TO RECHARGE THE EFFORT AND WILL CONTINUE WITH THE TOYS DURACELL'S RIVAL EVEREADY'S ENERGIZER HAS BEEN USING THE UBIQUITOUS BUNNY BOPPING THE BIG BASS DRUM FOR FOUR YEARS IN MORE THAN 30 SPOTS THE HAPLESS MAYTAG REPAIRMAN HAS BEEN BUSY NOT REPAIRING MAYTAG APPLIANCES FOR 26 YEARS MAKING MR LONELY THE LONGEST RUNNING CAMPAIGN ON TELEVISION TO USE A REALLIFE CHARACTER AS OPPOSED TO TONY THE TIGER SUCH SUCCESSFUL CAMPAIGNS ARE A PARADOX IN A BUSINESS WHERE CREATIVITY IS SUPPOSED TO BE THE DRIVING FORCE LITTLE CREATIVITY MAY EMERGE IN SIMPLY RECYCLING THE SAME OL' SCENARIO AGAIN AND AGAIN YET THE OBJECTIVE IN ADVERTISING IS TO MOVE THE PRODUCT OFF THE SHELF BY REINFORCING A BRAND'S IMAGE AGAIN AND AGAIN THE DANGER IS THAT FAMILIARITY BREEDS CONTEMPT OR WORSE FAMILIARITY BREEDS BOREDOM AND ANNOYANCE WHICH COULD LEAD TO UNFAVORABLE BEHAVIOR ON THE PART OF THE CONSUMER SAYS STEPHEN A GREYSER A MARKETING PROFESSOR AT HARVARD BUSINESS SCHOOL THAT COULD MEAN THE CONSUMER WON'T BUY THE PRODUCT OR THE PRODUCT COULD BECOME THE SUBJECT OF PUBLIC HUMILIATION LAST YEAR COMEDIAN PAULA POUNDSTONE RAN OFF A TWOMINUTE RIFF POKING FUN AT THE ENERGIZER BUNNY ADS AFTER SHE PICKED OUT A MEMBER OF THE AUDIENCE WHO TURNED OUT TO BE DICK SITTIG SENIOR VICE PRESIDENT AND CREATIVE DIRECTOR AT CHIAT/DAY THE AGENCY BEHIND THOSE EVEREADY FAKE ADSWITHINADS NONE OTHER THAN DAVID LETTERMAN KNOCKED THE HEAD OFF THE BUNNY ON HIS LATE NIGHT SHOW BUT THE BUNNY KEPT GOING MR SITTIG SAYS SERIOUSLY IT WAS A GREAT PRODUCT DEMONSTRATION THE EXECUTIVES WHO HELP TURN OUT LONGRUNNING CAMPAIGNS SAY THERE IS LITTLE DOWNSIDE IN REPEATING A CONCEPT OVER AND OVER RESEARCH SHOWS FOR EXAMPLE EXCELLENT RECALL FOR THE DURACELL ADS SAYS JACK REED SENIOR VICE PRESIDENT AT OGILVY & MATHER WE'RE STICKING WITH THE DURACELL TOY SPOTS THERE IS NO SHORTAGE OF IDEAS FOR NEW CUSTOMBUILT TOYS EITHER HE SAYS NOR IS THERE A SHORTAGE OF ITERATIONS FOR THE MAYTAG REPAIRMAN THE HAPLESS AND IDLE CHARACTER WON'T BE RETIRED BECAUSE WE TRACK AWARENESS LEVELS AND HIS HAVE NEVER BEEN HIGHER SAYS NORMAN BOYLE MAYTAG'S DIRECTOR OF ADVERTISING THE CAMPAIGN HAS BEEN SO LONGRUNNING THAT THE VETERAN ACTOR JESSE WHITE ULTIMATELY RETIRED A FEW YEARS AGO AND WAS REPLACED BY GORDON JUMP THE BUMBLING STATION MANAGER FROM THE WKRP IN CINCINNATI TELEVISION SERIES MARKETING CONSULTANT AL RIES OF TROUT & RIES SAYS COMPANIES SUCH AS DURACELL AND MAYTAG HAVE BEEN ABLE TO GET AWAY FROM TOTALLY ANNOYING CONSUMERS BY CHANGING SOME ASPECTS OF THE SPOTS ONLY IF YOU REPEAT THE SAME KIND OF THING WITH NO CHANGE IN VERBAL OR VISUAL WILL YOU CAUSE VIEWER TURNOFF HE SAYS THE MAYTAG REPAIRMAN FOR INSTANCE USED TO JUST SIT AND SULK IN HIS SHOP NOW TO VARY THE SPOTS HE ACTUALLY DAYDREAMS HE'S DOING SOMETHING BUT SOME SUGGESTED SPOTS FROM MAYTAG'S AD AGENCY LEO BURNETT SIMPLY DON'T WASH WITH MAYTAG EXECUTIVES ONCE THE REPAIRMAN WAS DAYDREAMING THAT HE WAS IN A CANOE EN ROUTE TO RESCUE A WOMAN OVERWHELMED BY A WASHING MACHINE SPEWING WATER YOU DON'T WANT TO ASSOCIATE FLOODING WATER WITH A WASHING MACHINE SAYS MR BOYLE THE AD WAS CHANGED SO THE REPAIRMAN WOULD FREE A WOMAN TRAPPED IN A HUGE BUBBLE SOMETIMES THE PLUG IS PULLED ON A LONGRUNNING CAMPAIGN THAT MAY STILL HAVE A LOT OF KICK LEFT NYNEX'S SOCALLED HUMAN CARTOON SPOTS FOR THE YELLOW PAGES FOR INSTANCE WERE WIDELY CREDITED FOR THEIR ORIGINALITY THE SPOTS SHOWCASED PECULIAR SCENES TO ACT OUT ACTUAL CATEGORIES FOUND IN THE YELLOW PAGES FOR EXAMPLE A FISHING LURE IS SLOWLY REELED ACROSS THE FLOOR WHEN SUDDENLY A BRUISING FOOTBALL PLAYER FALLS ON IT THE CATEGORY FISHING TACKLE BUT LAST MONTH NYNEX AND ITS AGENCY CHIAT/DAY CLOSED THE BOOK ON ITS 6 1/2YEAR EFFORT AFTER 23 CLEVER EXECUTIONS IT WAS A LITTLE SCARY CONCEDES MR SITTIG WE WERE WALKING AWAY FROM A CAMPAIGN THAT A LOT OF AGENCIES WOULD HAVE GIVEN THEIR RIGHT ARM FOR WE WERE PREPARED FOR THE WORST THEY CHANGED THE CAMPAIGN TO CHANGE THEIR MESSAGE RATHER THAN BECAUSE IDEAS WERE BECOMING SCARCE SAYS DEIRDRE GALLROBINSON STAFF DIRECTOR OF NYNEX INFORMATION RESOURCES WITH THE OLD SPOTS NYNEX WANTED TO CONVEY TO CONSUMERS THE WIDE ARRAY OF ITEMS FOUND IN ITS YELLOW PAGES THE NEW ADS EMPHASIZE HOW IMPORTANT IT IS FOR BUSINESSES TO ADVERTISE IN THE MEDIUM BY FEATURING ADVERTISEMENTS IN THE YELLOW PAGES THAT COME TO LIFE THROUGH ANIMATION TO TALK TO POTENTIAL CUSTOMERS THE HUMANCARTOON ADS SAYS MS GALLROBINSON WERE HARD TO GIVE UP FROM A CREATIVE STANDPOINT BUT IT IS EASY TO GET ENAMORED BY YOUR OWN CREATIVE WORK AND BECOME OUT OF TOUCH WITH THE MARKETPLACE WE WANTED TO MAKE SURE THAT DIDN'T HAPPEN WITH NYNEX AS WITH MAYTAG SOME IDEAS NEVER GOT PAST THE DRAWING BOARD THERE WAS THE SPOT SHOWING A CLASSROOM OF ROWDY STUDENTS A FEMALE TEACHER ENTERS DRESSED IN LEATHER AND CARRYING A WHIP THE CATEGORY LEATHER SUBSTITUTES ANOTHER SPOT WOULD HAVE SHOWN FISH PUSHING SHOPPING CARTS IN A SUPERMARKET GIVE UP HOW ABOUT FISH BYPRODUCTS NEITHER COMMERCIAL MADE IT OFF THE CUTTINGROOM FLOOR WITH PORTIONS OF TWO OF ITS BIGGEST ACCOUNTS IN REVIEW AC&R ADVERTISING STAFFERS WERE ALARMED YESTERDAY TO LEARN OF A MANDATORY AGENCYWIDE MEETING SET FOR 9 AM TODAY THE REASON FOR THE MEETING OUGHT TO COME AS A RELIEF HARRY KOENIG VICE CHAIRMAN AND CHIEF OPERATING OFFICER SAID HE PLANS TO DISTRIBUTE BONUSES TO ALL OF THE AGENCY'S 160 STAFFERS AT THE MORALEBOOSTING SESSION WE SHOULD ALL PULL TOGETHER EVEN MORE HE SAID AC&R A SAATCHI & SAATCHI CO SHOP HAS HAD ITS SHARE OF TOUGH TIMES LATELY WITH SEVERAL SMALL ACCOUNT WINS HARDLY MAKING UP FOR BILLINGS LOST OR IN JEOPARDY AC&R'S BIGGEST CLIENT ESTEE LAUDER INC CONTINUES TO LOOK FOR A NEW AGENCY TO HANDLE THE ESTIMATED 10 MILLION ARAMIS ACCOUNT WHILE ANOTHER SEIKO CORP OF AMERICA IS LOOKING FOR A NEW SHOP FOR ITS PULSAR AND JAZPARIS WATCH BRANDS ESTEE LAUDER SEIKO AND AC&R HAVE DENIED THAT THE REVIEWS EXTEND TO OTHER BRANDS IN THE SEIKO REVIEW GOODBY BERLIN & SILVERSTEIN SAN FRANCISCO HAS DROPPED OUT OF CONTENTION LEAVING MULLEN ADVERTISING WENHAM MASS WPP GROUP'S MARTIN AGENCY JORDAN MCGRATH CASE & TAYLOR AND SAATCHI & SAATCHI'S CLIFF FREEMAN & PARTNERS 9304070027 930407 BUSINESS BRIEF AMERICAN EXPRESS CO IDS UNIT TO OFFER SERVICES AT TWO FIRST BANK OUTLETS AMERICAN EXPRESS CO'S IDS FINANCIAL SERVICES UNIT SAID IT IS OFFERING FINANCIALPLANNING SERVICES IN TWO FIRST BANK SYSTEM INC BRANCHES THE FIRST OF A PLANNED NATIONWIDE ALLIANCE WITH LARGER BANKS THE FASTGROWING IDS IS RETURNING TO ITS ORIGINS TO LAUNCH THE PILOT PROGRAM THIS MONTH IN TWO SMALL TOWNS SOUTH OF ITS HOME BASE IN MINNEAPOLIS IDS FOUND A RECEPTIVE AUDIENCE AMONG CONSERVATIVE MIDWESTERNERS WHEN IT FIRST STARTED OFFERING MUTUAL FUNDS MORE THAN 40 YEARS AGO AND SAYS IT PLANS TO EXPAND ITS BANKING ALLIANCES IF THE PILOT PROGRAM SUCCEEDS AMONG CONSERVATIVE RURAL BANKING CUSTOMERS WE HOPE TO OFFER HIGHER RETURNS THAT ARE SAFE WITH NO GLITZ A SPOKESWOMAN SAID THE ALLIANCE WITH FIRST BANK SYSTEM ALSO OF MINNEAPOLIS IS EXPECTED TOBE THE FIRST OF SIMILAR PACTS WITH FIVE TO EIGHT LARGER BANKS NATIONWIDE SHE ADDED IDS WHICH OWNS OR MANAGES ABOUT 84 BILLION IN ASSETS HAS 7300 FINANCIAL PLANNERS ACROSS THE COUNTRY 9304070026 930407 RULE OF LAW THE CONSERVATIVE CASE FOR JUDICIAL ACTIVISM BY DAVID P BRYDEN CONSERVATIVES SOMETIMES REMARK THAT LIBERALS WOULD BE LESS ENAMORED OF JUDICIAL ACTIVISM IF IT WERE EMPLOYED ON BEHALF OF CONSERVATIVE CAUSES A POWERFUL POLEMICAL POINT SURELY BUT NOT ONE THAT HAS CAUSED MUCH INSOMNIA IN CAMBRIDGE FOR THE PREMISE OF THE ARGUMENT THAT CONSERVATIVE JUSTICES MIGHT FASHION AN ARRAY OF NOVEL CONSERVATIVE RIGHTS IS KNOWN TO BE AN ALMOST ENTIRELY EMPTY THREAT MOST CONSERVATIVES REJECT THAT SORT OF ACTIVISM AND SO DOES THE REHNQUIST COURT WHEN CONSERVATIVES FAULT THE SUPREME COURT IT IS NOT FOR FAILING TO CREATE CONSERVATIVE RIGHTS BUT FOR OCCASIONALLY REAFFIRMING LIBERAL RIGHTS SUCH AS THE RIGHT TO ABORTION MAINSTREAM CONSERVATIVES BELIEVE THAT THE MOST FUNDAMENTAL NORM OF CONSTITUTIONAL ADJUDICATION IS JUDICIAL RESTRAINT THIS IS A LOOSE TERM THAT I WILL DEFINE AS A COURT'S REFUSAL FOR PRINCIPLED REASONS TO EXCEED ITS PROPER AUTHORITY AND ROLE CONSERVATIVES JUSTIFY JUDICIAL RESTRAINT CHIEFLY ON TWO GROUNDS FIRST THEY ARGUE THAT RESTRAINT IS OFTEN REQUIRED BY THE JUSTICES' OBLIGATION TO APPLY THE ORIGINAL MEANING OF THE CONSTITUTION ORIGINALISM RATHER THAN ENGAGE IN RESULTORIENTED JUDGING SECOND CONSERVATIVES BELIEVE THAT BY CONFINING THE ROLE OF COURTS JUDICIAL RESTRAINT PRESERVES FEDERALISM AND DEMOCRACY THESE ARE THE STANDARD JUSTIFICATIONS FOR JUDICIAL RESTRAINT MY QUESTION IS THIS DO THESE JUSTIFICATIONS LOSE VALIDITY FOR ANY INDIVIDUAL JUSTICE IF HE DISCOVERS THAT MOST OTHER JUSTICES DO NOT ACCEPT THEM BY THEIR VERY NATURE PURELY LEGAL REASONS FOR JUDICIAL RESTRAINT LOSE MUCH OF THEIR FORCE UNLESS MOST JUDGES OBEY THEM THE RULE OF LAW REQUIRES A CRITICAL MASS A THRESHOLD BELOW WHICH SOME OF ITS VALUES CANNOT EVEN PARTIALLY BE ACHIEVED EQUAL TREATMENT OF LITIGANTS AVOIDANCE OF ARBITRARINESS PREDICTABLE DECISIONS ALL OF THESE GOALS REQUIRE A HIGH DEGREE OF JUDICIAL CONSENSUS INSOFAR AS HIS GOAL IS TO MAINTAIN THE RULE OF LAW A JUSTICE NEEDS TO KNOW NOT JUST WHETHER THE COURT OUGHT TO PRACTICE ORIGINALISM BUT WHETHER IT ACTUALLY DOES IRONICALLY THE MORE HE ACCEPTS THE CONSERVATIVE CHARGE THAT LIBERAL JUSTICES REPEATEDLY HAVE IGNORED THE ORIGINAL MEANING OF THE CONSTITUTION THE MORE HE MUST REJECT THE CONSERVATIVE ASSUMPTION THAT JUSTICES ARE REQUIRED BY THE RULE OF LAW TO BE FAITHFUL TO THAT MEANING IN MOST CONSTITUTIONAL CASES THE BEST ARGUMENTS AGAINST JUDICIAL INTERVENTION ARE BASED NOT ON THE RULE OF LAW BUT ON DEMOCRATIC VALUES CONSERVATIVES DISLIKE JUDICIAL ACTIVISM BECAUSE EVEN WHEN IT IS LAWFUL IT DETRACTS HOWEVER SLIGHTLY FROM SELFGOVERNMENT THE ARGUMENT FOR RESTRAINT BASED ON DEMOCRATIC VALUES UNLIKE THE ARGUMENT BASED ON THE RULE OF LAW DOES NOT PRESUPPOSE A JUDICIAL CONSENSUS DEMOCRACY LIKE FISCAL RESPONSIBILITY OR PRUDENCE IN FOREIGN AFFAIRS IS VALUABLE IN ANY QUANTITY BUT THE PROBLEM IS NOT QUITE SO SIMPLE THERE ARE OTHER CONSIDERATIONS SUPPOSE THAT SEVERAL CONSERVATIVE JUSTICES WHO VALUE JUDICIAL RESTRAINT ON DEMOCRATIC VALUES GROUNDS ARE ABLE TO FORM A MAJORITY IN MANY CASES THAT COME BEFORE THE COURT THEY CAN BLOCK LIBERAL ACTIVISM AND THEY ALSO CAN PREVENT THE REVIVAL OF CONSERVATIVE ACTIVISM SO FAR SO GOOD BUT THEY ALSO KNOW THAT LIBERALS EVENTUALLY WILL REGAIN CONTROL OF THE COURT WHAT THEY MUST THEN DECIDE IS WHETHER TO PRACTICE RESTRAINT WHEN THEY ARE A MAJORITY EVEN IF THEY DO NOT EXPECT LIBERALS TO SHOW SIMILAR RESTRAINT WHEN THEIR TIME COMES ACCORDING TO STANDARD CONSERVATIVE JURISPRUDENCE LIBERALS' PRACTICES ARE RELEVANT ONLY AS ILLUSTRATIONS OF BAD JUDGING BUT IN CONTEXTS THAT ARE AT LEAST ARGUABLY ANALOGOUS MOST CONSERVATIVES WOULD WEIGH THE BEHAVIOR OF LIBERALS IN DETERMINING WHAT COURSE TO FOLLOW CONSIDER THREE CASES A SENATOR OPPOSES FILIBUSTERS IN PRINCIPLE BUT OBSERVES THAT THE OTHER PARTY HAS FILIBUSTERED AGAINST BILLS THAT HE FAVORS SHOULD HE THEN FILIBUSTER AGAINST SOME OF THE OTHER PARTY'S BILLS A SENATOR BELIEVES THAT IT VIOLATES SOUND PRINCIPLES OF FEDERALISM FOR CONGRESS TO PROVIDE THE STATES WITH GRANTS FOR EXAMPLE HIGHWAY CONSTRUCTION FUNDS THAT ARE CONDITIONED ON COMPLIANCE WITH FEDERAL RULES CONCERNING UNRELATED MATTERS BUT SUCH CONDITIONS ARE NOW COMMON SHOULD THE SENATOR VOTE AGAINST A CONDITIONAL GRANT BILL TODAY EVEN IF HE APPROVES OF THE CAUSE SERVED BY THE CONDITIONS A CONSERVATIVE SENATOR BELIEVES THAT NOMINEES TO THE SUPREME COURT SHOULD BE EVALUATED SOLELY ON THE BASIS OF THEIR CREDENTIALS HE ALSO BELIEVES HOWEVER THAT THE OTHER PARTY REJECTS THAT VIEW SHOULD HE REJECT IT AS WELL I BELIEVE THAT IN ALL OF THESE SITUATIONS MOST CONSERVATIVES WOULD GIVE DECISIVE WEIGHT TO THE BEHAVIOR OF LIBERALS CONCEIVABLY LIBERAL OPINION EVENTUALLY WILL VEER BACK TO THE RESTRAINTIST VIEWS THAT WERE POPULAR EARLY IN THIS CENTURY BUT WHAT MIGHT GENERATE SUCH A REVERSAL THIS SUBJECT IS NEVER DISCUSSED YET UNLESS LIBERALS ARE SOMEHOW CONVERTED THE LONGTERM EFFECT OF CONSERVATIVE RESTRAINT IS NOT TO MAKE THE COURT RESTRAINED BUT ONLY TO CREATE LULLS BETWEEN ERAS OF LIBERAL ACTIVISM THE PARADOX OF JUDICIAL RESTRAINT IS THAT INSOFAR AS IT CAN BE INCULCATED AT ALL IT CAN BE INCULCATED ONLY BY JUDICIAL ACTIVISM IT WAS CONSERVATIVE ACTIVISM PRIOR TO 1937 THAT BRED MODERATELY RESTRAINTIST LIBERAL JUSTICES LIKE FRANKFURTER AND BLACK AND IT WAS THE LIBERAL ACTIVISTS OF THE WARREN AND BURGER COURT ERAS WHO TRANSFORMED JUDICIAL RESTRAINT INTO THE TENET OF CONSERVATIVE ORTHODOXY IT IS TODAY THE LIBERAL RESTRAINTISTS OF THE NEW DEAL GENERATION ARE NOW A DYING BREED TODAY EVEN THE MOST MODERATE OF LIBERAL CONSTITUTIONAL SCHOLARS ARE ACTIVISTS AS CONSERVATIVES DEFINE THE TERM EVEN MORE SO IS THE CURRENT GENERATION OF LIBERAL LAW STUDENTS THE POOL FROM WHICH DEMOCRATIC JUSTICES WILL BE DRAWN 30 YEARS HENCE THE CENTRAL STRATEGIC FACT IS THAT IN THE LONG RUN CONSERVATIVES LACK THE POWER TO DETERMINE WHETHER THE COURT IS RESTRAINED THEY HAVE ONLY THE POWER TO DETERMINE WHETHER THEY ARE RESTRAINED MAINSTREAM CONSERVATIVE JURISPRUDENCE WHICH IGNORES THIS REALITY IS UTOPIAN THE DILEMMA OF CONSERVATIVE JURISPRUDENCE THEN IS THAT CONSERVATIVES MUST SACRIFICE EITHER THEIR COMMITMENT TO JUDICIAL RESTRAINT OR THEIR RIGHT TO EQUAL POWER ON THE SUPREME COURT IF WITH THEIR EYES OPEN CONSERVATIVES CHOOSE TO SACRIFICE EQUAL POWER I CANNOT CONFIDENTLY ASSERT THAT THEY ARE MISTAKEN BUT THEY SHOULD NOT DO SO UNDER THE ILLUSION THAT THEY HAVE NO ETHICAL ALTERNATIVE THEY DO MR BRYDEN IS A PROFESSOR OF LAW AT THE UNIVERSITY OF MINNESOTA THIS ARTICLE IS ADAPTED FROM THE SPRING ISSUE OF THE PUBLIC INTEREST 9304070025 930407 BEFORE GERSTNER WON IBM POSTS 2 OTHERS HELD SALARY TALKS PEOPLE CLOSE TO SEARCH SAY BOSSIDY APPEARED TO FIND COMPENSATION TOO LARGE BY JULIE AMPARANO LOPEZ AND LAURENCE HOOPER STAFF REPORTERS OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP HELD DETAILED SALARY NEGOTIATIONS WITH TWO CANDIDATES INCLUDING LAWRENCE BOSSIDY OF ALLIEDSIGNAL INC BEFORE HIRING LOUIS V GERSTNER JR AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE IDENTITY OF THE OTHER CANDIDATE COULDN'T BE LEARNED IBM HAS TAKEN PAINS TO PORTRAY MR GERSTNER AS ITS TOP CHOICE FOR THE POSITION IN ANNOUNCING THE APPOINTMENT COMPANY DIRECTOR JAMES BURKE WHO HEADED IBM'S SEARCH COMMITTEE SAID HE MADE ONLY ONE JOB OFFER BUT MR BURKE APPARENTLY WAS USING LANGUAGE CAREFULLY IBM'S OFFER TO MR GERSTNER CAME ONLY AFTER FINAL TALKS WITH THE OTHER TWO CANDIDATES HAD BROKEN DOWN ACCORDING TO PEOPLE CLOSE TO THE SEARCH IBM SAID IT HIRED JOSEPH BACHELDER A NEW YORK COMPENSATION LAWYER TO CONDUCT SALARY NEGOTIATIONS FOR MR GERSTNER MR BACHELDER CONFIRMED THAT HE GAVE ADVICE ON COMPENSATION PACKAGES FOR MORE THAN ONE IBM CANDIDATE HOWEVER HE SAID HE ONLY PREPARED ONE COMPENSATION PACKAGE WHICH WAS FOR MR GERSTNER HE DECLINED TO COMMENT FURTHER MR BOSSIDY DECLINED TO COMMENT PEOPLE CLOSE TO IBM SAID ONE REASON HE APPEARS TO HAVE TURNED DOWN THE JOB IS HIS PAY PACKAGE WOULD HAVE BEEN SO BIG IT WOULD BECOME AN IMMEDIATE PUBLICRELATIONS HEADACHE FOR THE BLEEDING COMPUTER GIANT MR BOSSIDY HAS BEEN CHAIRMAN AT ALLIEDSIGNAL ONLY SINCE JULY 1991 WHEN HE WAS WOOED FROM A VICE CHAIRMAN'S POST AT GENERAL ELECTRIC CO FOR PROMISING A TURNAROUND AT ALLIEDSIGNAL HE RECEIVED A FIVEYEAR EMPLOYMENT CONTRACT THAT AT THE TIME WAS VALUED AT ABOUT 29 MILLION WITH SOME COMPENSATION SPREAD THROUGH THE YEAR 2000 SINCE HIS ARRIVAL ONCEMORIBUND ALLIEDSIGNAL HAS MADE BIG STRIDES MOSTLY THROUGH A HUGE COSTCUTTING PROGRAM SINCE THE NEWS OF MR BOSSIDY'S APPOINTMENT THE COMPANY'S SHARE PRICE HAS MORE THAN DOUBLED TO FINISH YESTERDAY AT 6325 DOWN 175 ON THE NEW YORK STOCK EXCHANGE ALLIEDSIGNAL BASED IN MORRISTOWN NJ MAKES AUTOMOTIVE AND AEROSPACE PRODUCTS AND ENGINEERED MATERIALS BECAUSE OF HIS RECORD MR BOSSIDY HAS BECOME A DARLING OF WALL STREET BUT SOME SECURITIES ANALYSTS SAID THEY'RE VERY UNCOMFORTABLE THAT HE SERIOUSLY CONSIDERED JUMPING SHIP SO SOON ABOUT 90 OF THE IMPROVEMENT IN THE SHARE VALUE OF THE COMPANY REFLECTS WHAT MR BOSSIDY HAS DONE FOR THE COMPANY SAID ALBERT TURNER AN ANALYST AT DUFF & PHELPS HIS LEAVING WOULD PRODUCE AN IMMEDIATE NEGATIVE REACTION TO THE COMPANY'S STOCK THE IBM SEARCH ISN'T THE FIRST TIME MESSRS BOSSIDY AND GERSTNER HAVE VIED FOR THE SAME JOB IN 1989 MR BOSSIDY WAS THE OTHER FINALIST FOR MR GERSTNER'S PREVIOUS POSITION AS CHAIRMAN OF RJR NABISCO HOLDINGS CORP ACCORDING TO PEOPLE CLOSE TO THE IBM SEARCH MR GERSTNER WAS AMONG THE FIRST TO RAISE HIS HAND FOR BIG BLUE'S TOP JOB BUT HE INFORMED IBM'S REPRESENTATIVES THAT HE WOULDN'T ENTER DETAILED DISCUSSIONS UNLESS THEY WERE INTERESTED SOLELY IN HIM THAT EARNED HIM THE NICKNAME ABLE A MONIKER MR BURKE SAID HE BESTOWED ON MR GERSTNER BECAUSE HE WAS THE FIRST PERSON CONTACTED BY THE SEARCH COMMITTEE AND FORCED IBM TO SCRUTINIZE OTHER CANDIDATES BEFORE COMING BACK TO HIM AFTER ENDING ITS DISCUSSIONS WITH MR BOSSIDY AND ONE OTHER CANDIDATE IBM APPARENTLY TURNED TO MR GERSTNER AS ITS NEXT CHOICE AFTER AN AGREEMENT WAS REACHED MR BURKE AND OTHER IBM OFFICIALS ENLISTED PUBLICRELATIONS ADVICE TO HELP PORTRAY MR GERSTNER AS HAVING BEEN A TOP CHOICE ALL ALONG THE SOURCES SAID AN IBM SPOKESMAN AND MR BURKE WHO IS FORMER CHAIRMAN OF JOHNSON & JOHNSON SAID THEY DIDN'T HAVE ANYTHING TO ADD TO MR BURKE'S COMMENTS AT A MARCH 26 NEWS CONFERENCE THAT INTRODUCED MR GERSTNER EVERYTHING THAT WAS SAID AT THE PRESS CONFERENCE WAS COMPLETELY TRUE AND ACCURATE SAID A SPOKESWOMAN FOR MR BURKE INDEED MR BURKE'S CLAIM THAT IBM MADE ONLY ONE JOB OFFER JIBES WITH EXECUTIVESEARCH PROTOCOL ETIQUETTE SAYS A CORPORATION SHOULD TECHNICALLY MAKE A FORMAL JOB OFFER TO ONLY ONE PERSON BUT BY USING EXECUTIVE RECRUITERS A COMPANY CAN EASILY BLUR THAT PROTOCOL DETERMINING SALARY REQUIREMENTS AND SOLVING OTHER ISSUES BEFORE THE CANDIDATE IS FORMALLY SOLICITED IBM HIRED TWO EXECUTIVE SEARCH FIRMS TO HELP FIND A NEW BOSS FOR THE COMPANY HEIDRICK & STRUGGLES INC CHAIRMAN GERALD R ROCHE AND RIVAL THOMAS J NEFF PRESIDENT OF SPENCERSTUART CONDUCTED THE SEARCH ONCE MR GERSTNER WAS APPROACHED THINGS FELL INTO PLACE QUICKLY PEOPLE CLOSE TO THE SEARCH SAID HE DIDN'T MAKE ANY BIG SALARY DEMANDS AND WAS HAPPY TO TAKE MUCH OF HIS COMPENSATION IN AN UNUSUALLY LARGE GRANT OF 500000 OPTIONS TO BUY IBM SHARES THAT GRANT MEANS MR GERSTNER COULD EARN 1 MILLION FOR EVERY 2 THAT HE ADDS TO IBM'S STOCK PRICE A PAYOFF THAT WOULD TOP 20 MILLION IF HE SIMPLY RESTORES THE ISSUE TO ITS 1992 HIGH OF ABOUT 100 A SHARE IN TRADING ON THE NEW YORK STOCK EXCHANGE IBM SHARES FELL 625 CENTS TO 52 BUT IN SOME RESPECTS MR GERSTNER'S PACKAGE 2 MILLION BASE PAY THIS YEAR PLUS THE CHANCE FOR A 15 MILLION BONUS ALREADY LOOKS GENEROUS HE WAS COMPENSATED 5 MILLION FOR BENEFITS HE FORFEITED BY LEAVING RJR MOSTLY OPTIONS TO BUY RJR SHARES AT REDUCED PRICES WHILE IBM WON'T GIVE A BREAKDOWN OF WHAT THE 5 MILLION COVERED RJR OPTIONS HAVE LOST SIGNIFICANT VALUE SINCE MR GERSTNER SIGNED ON IBM'S DOTTED LINE BAD NEWS LAST WEEK IN THE TOBACCO INDUSTRY PUMMELED RJR SHARES WHICH DROPPED 375 CENTS TO 6 YESTERDAY FROM ITS LEVELS OF ABOUT 8 WHEN MR GERSTNER LEFT THE COMPANY AMAL KUMAR NAJ CONTRIBUTED TO THIS ARTICLE 9304070024 930407 SOUTHDOWN HOLDER PLANS TO DECIDE SOON ABOUT PROXY FIGHT HOUSTON SOUTHDOWN INC'S LARGEST SHAREHOLDER MOVED CLOSER TO A PROXY FIGHT WITH THE CEMENT AND CONCRETE MAKER AND SAID A DECISION PROBABLY WOULD BE MADE BY TOMORROW ON PROPOSING A SLATE OF DIRECTORS FOR THE MAY 20 ANNUAL MEETING IN A SECURITIES AND EXCHANGE COMMISSION FILING RICHARD C BLUM & ASSOCIATES INC AND THE CARPENTERS PENSION TRUST FOR SOUTHERN CALIFORNIA WHICH REPRESENT A 1474 STAKE IN SOUTHDOWN SAID THEY WERE CONSIDERING A RANGE OF ACTIONS THE MOST LIKELY OF WHICH IS THE SPONSORSHIP OF A SLATE OF THREE DIRECTORS IN OPPOSITION TO THE MANAGEMENT SLATE MICHAEL KLEIN AN ATTORNEY REPRESENTING THE GROUP SAID A PROXY FIGHT WAS AN UNUSUAL STEP FOR BOTH THE PENSION TRUST AND FOR BLUM THE INVESTMENT ADVISER TO THE TRUST IT COSTS A LOT OF MONEY AND IT IS NOT A PLEASANT EXPERIENCE BUT I THINK OUR INCLINATION IS TO RUN A SLATE HE SAID THE FILING SAID A DECISION WOULD BE MADE WITHIN A WEEK BUT MR KLEIN SAID YESTERDAY THAT AN ANNOUNCEMENT WAS LIKELY WITHIN 48 HOURS THREE OF SOUTHDOWN'S NINE BOARD SEATS ARE UP FOR ELECTION IN ITS SLATE SOUTHDOWN DIDN'T RENOMINATE RICHARD N TUTOR A COCHAIRMAN OF THE PENSION TRUST'S BOARD WHO WAS THE ONLY REPRESENTATIVE OF THE BLUM GROUP ON SOUTHDOWN'S BOARD AS A RESULT THE BLUM GROUP SAID IT MIGHT PROPOSE ITS OWN NOMINEES LAST WEEK SOUTHDOWN SUED THE BLUM GROUP CHARGING THAT IT HADN'T FULLY DISCLOSED ITS INTENTIONS IN SEC FILINGS JAMES L PERSKY SOUTHDOWN'S SENIOR VICE PRESIDENT FOR FINANCE SAID THE COMPANY HAS TOLD BLUM IT WOULD CONSIDER NOMINATION OF ADDITIONAL INDEPENDENT DIRECTORS AND INVITED THE BLUM GROUP TO SUBMIT NAMES IN LATE NEW YORK STOCK EXCHANGE TRADING SOUTHDOWN SHARES WERE DOWN 875 CENTS AT 975 9304070023 930407 INTERNATIONAL GREECE HUNGARY PREPARE TO SELL PHONE FIRMS' STOCK BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON A PLANNED SERIES OF STOCK OFFERINGS IN EUROPE'S STATEOWNED TELEPHONE COMPANIES MOVED A STEP CLOSER AS PLANS FIRMED UP IN HUNGARY AND GREECE TO COMPLETE MORE THAN 1 BILLION IN STOCK SALES THIS YEAR IN HUNGARY THE GOVERNMENT OPENED AN AUCTION TO SELL AT LEAST 30 OF STATEOWNED HUNGARIAN TELECOMMUNICATIONS CO TO WESTERN TELECOMMUNICATIONS COMPANIES THE SALE IS LIKELY TO FETCH AT LEAST 500 MILLION AND HAS ATTRACTED MORE THAN 20 POTENTIAL BIDDERS FROM THE GLOBAL TELECOMMUNICATIONS INDUSTRY THE SALE ACCORDING TO DOCUMENTS ISSUED YESTERDAY WILL BE COMPLETED BY YEAR END SEPARATELY IN GREECE STATEOWNED HELLENIC TELECOMMUNICATIONS ORGANIZATION SA CHOSE FINANCIAL ADVISERS FOR PART OF ITS PLANNED STOCK ISSUE THIS YEAR THIRTEEN TELECOMMUNICATIONS COMPANIES FROM AROUND THE WORLD ARE STUDYING THE COMPANY'S BOOKS IN ATHENS PREPARING THEIR BIDS FOR A 35 STAKE TO BE SOLD BY THE GREEK GOVERNMENT BEFORE SEPT 30 A FURTHER 14 STAKE LIKELY TO FETCH AT LEAST 350 MILLION WILL BE SOLD IN AN INTERNATIONAL PUBLIC STOCK OFFERING ANALYSTS ESTIMATE THE ENTIRE COMPANY IS WORTH AT LEAST 25 BILLION FOR THE PUBLIC SALE HELLENIC TELECOMMUNICATIONS SAID IT CHOSE CS FIRST BOSTON GROUP AND J HENRY SCHRODER WAGG & CO AS GLOBAL COORDINATORS MOST OF EUROPE'S TELECOMMUNICATIONS SECTOR HAS BEEN A GOVERNMENTOWNED MONOPOLY BRITAIN AND SPAIN IN THE 1980S WERE THE FIRST AND UNTIL THIS YEAR THE ONLY EUROPEAN NATIONS TO SELL SHARES IN THEIR STATE PHONE COMPANIES NOW WITH EUROPEAN COUNTRIES STRAPPED FOR CASH NEARLY EVERY EUROPEAN GOVERNMENT IS CONSIDERING PRIVATIZATION THE MOVE TOWARD DENATIONALIZATION HAS BEEN AIDED BY MARKETREGULATION LIBERALIZATIONS ALTHOUGH THE EUROPEAN COMMUNITY COMMISSION IS EXPECTED TO WATER DOWN ITS PLAN FOR FREER COMPETITION IN BASIC TELEPHONE SERVICES 9304070022 930407 WHO'S NEWS FINGERMATRIX INC FINGERMATRIX INC NORTH WHITE PLAINS NY THE COMPANY SAID IT NAMED RAYMOND R NORAT 64 YEARS OLD PRESIDENT OF THE MAKER OF FINGERPRINTIDENTIFICATION SYSTEMS MR NORAT THE COMPANY'S SECOND PRESIDENT IN A YEAR HAS BEEN A DIRECTOR OF CORPORATE AND GOVERNMENT DEVELOPMENT AT FIRST MADISON EQUITIES LTD A NEW YORKBASED REAL ESTATE BROKERAGE FIRM MICHAEL SCHILLER 59 REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR NORAT SUCCEEDS JOSEPH PHILLIPS JR 59 WHO THE COMPANY SAID RESIGNED TO PURSUE OTHER INTERESTS THE COMPANY DECLINED TO ELABORATE ON HIS DEPARTURE AND MR PHILLIPS WHO JOINED THE COMPANY IN APRIL 1992 COULDN'T BE REACHED FOR COMMENT BEFORE JOINING FINGERMATRIX HE HAD BEEN DIRECTOR OF THE AUTOMATED FINGERPRINT IDENTIFICATION SYSTEMS DIVISION OF NEC TECHNOLOGIES INC A US UNIT OF NIPPON ELECTRIC CORP OF JAPAN MR NORAT ALSO WAS ELECTED A DIRECTOR INCREASING THE BOARD TO FOUR MEMBERS 9304070021 930407 SHL SYSTEMHOUSE JOB TALKS OTTAWA SHL SYSTEMHOUSE INC SAID IT IS NEGOTIATING A 10YEAR CONTRACT TO PROVIDE DATA PROCESSING AND TELECOMMUNICATIONS SERVICES FOR CANADA POST CORP WHICH OPERATES CANADA'S MAIL SYSTEM SYSTEMHOUSE DECLINED TO ESTIMATE THE VALUE OF THE POTENTIAL CONTRACT BUT A SYSTEMHOUSE EXECUTIVE SAID IT COULD BE BY FAR THE LARGEST EVER RECEIVED BY THE COMPANY HE SAID HE EXPECTED THE NEGOTIATIONS TO BE COMPLETED SOON SYSTEMHOUSE PROVIDES COMPUTERSYSTEMS SERVICES TO MORE THAN A HALF DOZEN POSTAL SYSTEMS IN VARIOUS COUNTRIES 9304070020 930407 WHO'S NEWS FREEPORTMCMORAN NAMES RENE LATIOLAIS TO TWO TOP POSTS NEW ORLEANS FREEPORTMCMORAN INC ANNOUNCED A NEW PRESIDENT AND CHIEF OPERATING OFFICER AND SAID FOUR SENIOR EXECUTIVES WILL TAKE EARLY RETIREMENT BUT CONTINUE TO BE CONSULTANTS RENE L LATIOLAIS CURRENTLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF AGRICULTURAL MINERALS WILL BECOME THE COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE MAY 4 MR LATIOLAIS 50 YEARS OLD SUCCEEDS JAMES R MOFFETT WHO RETAINS HIS POSITION AS CHAIRMAN THE SENIOR EXECUTIVES TAKING EARLY RETIREMENT ARE MEMBERS OF THE OFFICE OF THE CHAIRMAN THEY ARE RON GROSSMAN 56 CHIEF FINANCIAL OFFICER WHO WILL BECOME COUNSEL TO THE CHAIRMAN ERNEST E HOWARD III 50 CHIEF INVESTMENT OFFICER WHO WILL BE NAMED CHIEF EXECUTIVE OFFICER OF FM PROPERTIES INC A PETROLEUM AND REAL ESTATE DEVELOPMENT COMPANY SPUN OFF TO FREEPORT HOLDERS LAST YEAR LOUIS A CLINTON 56 DEPUTY TO THE CHAIRMAN PACIFIC RIM WHO WILL CONTINUE TO ADVISE THE COMPANY ON PACIFIC RIM MATTERS AND RICHARD B STEPHENS 58 DEPUTY TO THE CHAIRMAN LATIN AMERICA AFRICA MIDDLE EAST AND EUROPE WHO WILL REPRESENT THE COMPANY ON SPECIAL ASSIGNMENTS HIRING FORMER EMPLOYEES ON A CONTRACTUAL BASIS IS A STRATEGY THAT THE ENERGY AND NATURAL RESOURCES CONCERN USED EARLY THIS YEAR IN FEBRUARY THE COMPANY ANNOUNCED THAT ABOUT 40 WORKERS IT HAD JUST LAID OFF WOULD BE HIRED BY CRESCENT TECHNOLOGY INC A NEW PRIVATELY HELD CONCERN THAT WILL PROVIDE SERVICES TO FREEPORT THE FOUR REMAINING MEMBERS OF THE OFFICE OF THE CHAIRMAN WILL BE MR MOFFETT MR LATIOLAIS GEORGE A MEALEY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FREEPORTMCMORAN COPPER & GOLD INC A MAJORITYOWNED UNIT OF THE COMPANY AND JOHN G AMATO GENERAL COUNSEL 9304070019 930407 WHO'S NEWS ANNTAYLOR'S SCHUMM RESIGNS AS PRESIDENT AND OPERATING CHIEF NEW YORK ANNTAYLOR STORES CORP SAID THAT JOSEPH SCHUMM RESIGNED FROM HIS POSTS OF PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR AND WILL BECOME A CONSULTANT TO THE COMPANY AN ANNTAYLOR SPOKESMAN SAID THAT MR SCHUMM RESIGNED FOR PERSONAL REASONS ADDING THAT THE COMPANY INTENDS TO LEAVE THE POST OF PRESIDENT AND CHIEF OPERATING OFFICER VACANT MR SCHUMM 48 YEARS OLD JOINED ANNTAYLOR IN 1989 AS EXECUTIVE VICE VICE PRESIDENT OF ADMINISTRATION HE WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER LAST YEAR AT THE SAME TIME SALLY FRAME KASAKS WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE MR SCHUMM COULDN'T BE REACHED FOR COMMENT MR SCHUMM'S DUTIES WILL BE ASSUMED BY PAUL FRANCIS 38 AN ANNTAYLOR DIRECTOR SINCE 1989 AND A MANAGING DIRECTOR AT MERRILL LYNCH & CO ANNTAYLOR NAMED MR FRANCIS TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION THE WOMEN'S WEAR RETAILER ALSO APPOINTED A NEW SENIOR VICE PRESIDENT AND GENERAL MERCHANDISE MANAGER JOSEPH GROMEK 46 YEARS OLD WHO WAS FORMERLY A VICE PRESIDENT OF LIMITED INC IN COLUMBUS OHIO MR GROMEK SUCCEEDS MARIE HOLMANRAO WHO RESIGNED IN FEBRUARY 9304070018 930407 UNITED AIRLINES TRAFFIC RISES CHICAGO UNITED AIRLINES SAID ITS MARCH TRAFFIC ROSE 174 TO 815 BILLION REVENUE PASSENGER MILES FROM 694 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 661 FROM 647 IN THE FIRST THREE MONTHS OF 1993 THE UAL CORP UNIT SAID IT FLEW 224 BILLION REVENUE PASSENGER MILES UP 173 FROM 191 BILLION A YEAR EARLIER LOAD FACTOR WAS 637 COMPARED WITH 609 LAST YEAR 9304070017 930407 BUSINESS BRIEF ARCADIAN PARTNERS LP COMPANY EXPECTS TO POST DECLINE IN FIRSTPERIOD NET ARCADIAN PARTNERS LP SAID THAT DUE TO LOWER PRODUCTION AND SIGNIFICANTLY INCREASED NATURAL GAS COSTS IT EXPECTS TO REPORT THAT NET INCOME FOR THE FIRST QUARTER OF 1993 WILL BE BELOW THE RESULTS OF THE FIRST QUARTERS OF 1992 AND 1991 THE MEMPHIS TENN COMPANY WHICH MAKES AND SELLS NITROGEN FERTILIZERS AND RELATED PRODUCTS SAID IT DOESN'T EXPECT THE REDUCED EARNINGS TO NEGATIVELY AFFECT ITS 605 CENT DISTRIBUTION TO PREFERENCE UNITHOLDERS FOR THE FIRST QUARTER THE COMPANY EXPECTS TO REPORT FIRSTQUARTER RESULTS LATER THIS MONTH FOR THE FIRST QUARTER OF 1992 NET INCOME WAS 217 MILLION OR 80 CENTS PER LIMITED PARTNERSHIP UNIT FOR THE FIRST QUARTER OF 1991 NET INCOME WAS 122 MILLION OR 45 CENTS PER LIMITED PARTNERSHIP UNIT THE COMPANY SAID SALES IN THE FIRST QUARTER WOULD EXCEED YEAREARLIER QUARTERLY SALES OF 1407 MILLION ARCADIAN PARTNERS SAID IT EXPECTS PRODUCTION IN THE SECOND QUARTER TO RETURN TO NEARNORMAL LEVELS THE FIRSTQUARTER PRODUCTION WAS REDUCED BY SCHEDULED MAINTENANCE AT THE COMPANY'S AUGUSTA GA PLANT AND DAMAGE TO AN AMMONIASEPARATOR VESSEL AT ITS MEMPHIS FACILITY 9304070016 930407 BUSINESS BRIEF KENTUCKY CENTRAL LIFE INSURANCE CO AILING INSURER LAYS OFF 218 FOLLOWING STATE TAKEOVER KENTUCKY CENTRAL LIFE INSURANCE CO SAID IT LAID OFF 218 OF ITS 770 EMPLOYEES OR 283 OF ITS WORK FORCE IN MIDFEBRUARY KENTUCKY STATE INSURANCE REGULATORS TOOK OVER THE AILING LIFE INSURANCE COMPANY WHICH IS BASED IN LEXINGTON THE REDUCTION IS AN ABSOLUTELY NECESSARY STEP IN THE REHABILITATION OF KENTUCKY CENTRAL ACCORDING TO A PRESS RELEASE ISSUED BY THE COMPANY THE COMPANY SAID LAIDOFF EMPLOYEES WILL RECEIVE A SEVERANCE PACKAGE THAT INCLUDES THE EQUIVALENT OF TWO WEEKS' PAY 9304070015 930407 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 11/16 LOW 2 3/4 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 179 DAYS 317 180 TO 239 DAYS 320 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 316 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 269 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 320 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 306 90 DAYS 309 120 DAYS 311 150 DAYS 312 180 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 MONDAY MARCH 29 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 296 13 WEEKS 304 26 WEEKS AUCTION OF APR 5 POSTPONED FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 735 60 DAYS 745 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 731 60 DAYS 741 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 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 9304070014 930407 BUSINESS BRIEF BRISTOLMYERS SQUIBB CO FIRM INCREASES SHARE TOTAL IN STOCKBUYBACK PROGRAM BRISTOLMYERS SQUIBB CO DIRECTORS INCREASED TO 50 MILLION FROM 25 MILLION THE SHARES IN THE COMPANY'S CURRENT STOCKBUYBACK PROGRAM RICHARD L GELB CHAIRMAN AND CHIEF EXECUTIVE OFFICER CALLED CURRENT MARKET CONDITIONS AN EXCELLENT OPPORTUNITY TO STRENGTHEN THE COMPANY THROUGH A PURCHASE OF A PORTION OF ITS OWN SHARES THE COMPANY HAD 518 MILLION SHARES OUTSTANDING AT YEAR END THE NEW YORK PHARMACEUTICAL AND CONSUMER PRODUCTS COMPANY HAS REPURCHASED 212 MILLION SHARES UNDER THE 25 MILLIONSHARE AUTHORIZATION THAT BEGAN IN OCTOBER 1987 9304070013 930407 POLITICS & POLICY LUXURY TAX MAY BE PERMANENT IN MONOPOLY' BUT CONGRESS PLAYS GAME WITH VANISHING INK BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT'S A CLOSE CONTEST WILL EDWARD B MADDEN JR A 19YEAR VETERAN OF THE INTERNAL REVENUE SERVICE'S ATTORNEY CORPS FINISH REGULATIONS GOVERNING THE LUXURY TAX BEFORE CONGRESS REPEALS IT OR WILL CONGRESS WHICH HAS REGRETTED THE TAX ALMOST SINCE IT CREATED IT IN 1990 GET THERE FIRST NO MATTER WHO FINISHES FIRST THERE'S LITTLE DOUBT ABOUT THE OUTCOME WITH THE ACQUIESCENCE OF THE CLINTON ADMINISTRATION CONGRESS IS ALMOST CERTAIN TO REPEAL THE TAX ON FURS JEWELRY YACHTS AND AIRPLANES AS PART OF A BROADER TAX BILL ANTICIPATED THIS SUMMER IT'S A REMINDER THAT WHEN IT COMES TO THE TAX CODE NOTHING IS EVER PERMANENT THE CELEBRATED 1986 TAX REFORM ACT WHICH CLOSED LOOPHOLES AND LOWERED MARGINAL TAX RATES IS SLOWLY BEING DISMANTLED THE ONAGAIN OFFAGAIN INVESTMENT TAX CREDIT WHICH LOOKED LIKE IT WOULD BE ON AGAIN WHEN PRESIDENT CLINTON OUTLINED HIS ECONOMIC PLAN NOW LOOKS LIKES LIKE IT'S OFF AGAIN NEITHER CONGRESS NOR BIG BUSINESS WANTS IT TAX CHANGES THAT ENCOURAGED THOUSANDS OF SMALL BUSINESSES TO ALTER THEIR TAX STATUS A FEW YEARS BACK ARE ON THE WAY TO BEING REVERSED AND TAX INCREASES APPROVED IN 1990 HAILED AT THE TIME BY PROPONENTS AS THE KEY TO FINALLY GETTING THE DEFICIT DOWN ARE TURNING OUT TO BE THE FIRST IN A SERIES IT ISN'T JUST REGULATIONWRITERS LIKE MR MADDEN WHO PAY A PRICE FOR THIS CONSTANT MOTION PEOPLE IN WASHINGTON HAVE ABSOLUTELY NO CONCEPTION OF THE COST ASSOCIATED WITH ALL THIS STUFF SAYS FRED GOLDBERG WHO WAS IRS COMMISSIONER AND LATER THE TOP TREASURY TAX OFFICIAL IN THE BUSH ADMINISTRATION IT IMPOSES A MINDNUMBING COST ON THE PRIVATE SECTOR IT'S ONE OF THE PRIMARY REASONS FOR THE AMERICAN PUBLIC'S LACK OF RESPECT FOR ITS GOVERNMENT THE LUXURY TAX WAS CONGRESS' WAY OF PROVING THAT THE 1980S GLORIFICATION OF GREED AND WEALTH WERE OVER IT WAS CONCEIVED MOSTLY NOT AS A MAJOR REVENUERAISER SO MUCH AS TO SHOW THAT LAWMAKERS WERE BEING TOUGH ON THE RICH IN THE 1990 DEFICITREDUCTION PACKAGE DESPITE EARLY REPUBLICAN CLAIMS THAT THE TAX WASN'T BRINGING IN AS MUCH MONEY AS CONGRESSIONAL AND TREASURY ESTIMATORS PREDICTED THE TAX NOW APPEARS TO BE PRODUCING THE EXPECTED SUMS IT YIELDED 252 MILLION IN CALENDAR YEAR 1991 AND 146 MILLION IN THE FIRST HALF OF 1992 THE LATEST FIGURES SHOW BUT THE TAX BACKFIRED YACHT MAKERS AIRCRAFT BUILDERS AND CAR DEALERS CONVINCED KEY MEMBERS OF CONGRESS INCLUDING SENATE DEMOCRATIC LEADER GEORGE MITCHELL FROM THE BOATBUILDING STATE OF MAINE AND REPUBLICAN LEADER BOB DOLE FROM THE PLANEBUILDING STATE OF KANSAS THAT THE TAX WAS HURTING SALES AND MORE IMPORTANT LEADING TO LAYOFFS ALTHOUGH IT WAS NEVER CLEAR THAT THE TAX AS OPPOSED TO THE RECESSION WAS TO BLAME THE REPEAL EFFORT QUICKLY TOOK OFF CONGRESS LAST YEAR VOTED TO REPEAL THE FUR JEWELRY BOAT AND AIRPLANE TAXES AND KEEP THE LEVY ON COSTLY AUTOS WHICH BRINGS IN MOST OF THE MONEY BUT PRESIDENT BUSH VETOED THE UNDERLYING BILL SO THE TAX SURVIVES PRESIDENT CLINTON HASN'T PROPOSED REPEAL BUT TREASURY SECRETARY LLOYD BENTSEN HAS TOLD MEMBERS OF CONGRESS THAT THE ADMINISTRATION WILL GO ALONG IF CONGRESS VOTES TO DO SO YET THE IRS WHICH HAS BEEN KNOWN TO PURSUE REGULATIONS ON TAXES AFTER THEY HAVE BEEN REPEALED CAN'T SUSPEND THE REGULATORY PROCESS JUST BECAUSE THE POLITICIANS ARE PROMISING REPEAL AND BUSINESSES STILL HAVE TO WORRY ABOUT COLLECTING THE TAX YOU GO TO JAIL IF YOU DON'T FILE YOUR QUARTERLY EXCISE TAX RETURN WITH RESPECT TO THE LUXURY TAX PROVISION THAT EVERYONE EXPECTS IS GOING TO BE REPEALED AND MAY EVEN BE REPEALED RETROACTIVELY MR GOLDBERG SAYS ALTHOUGH IT SOUNDS SIMPLE CONGRESS MADE THE LUXURY TAX COMPLICATED PARTLY TO AVOID EVASION AND PARTLY TO SOFTEN THE BLOW ON CERTAIN SPECIAL INTERESTS AND MR MADDEN'S JOB IS TO WRITE THE RULES THAT CLARIFY THE COMPLICATED SECTIONS OF THE TAX NO MATTER HOW IMMINENT REPEAL MAY BE BY LAW THE 10 TAX KICKS IN FOR JEWELRY AND FURS VALUED AT MORE THAN 10000 EVEN IF THE CUSTOMER PROVIDES THE COSTLY GEM OR PELT ON CARS THAT COST MORE THAN 30000 BUT NOT FOR TAXIS FOR BOATS THAT COST MORE THAN 100000 BUT NOT FOR THOSE USED IN BUSINESS UNLESS THE BUSINESS IS RECREATION OR ENTERTAINMENT AND FOR AIRPLANES THAT COST MORE THAN 250000 EXCEPT THOSE USED 80 OF THE TIME FOR BUSINESS THE 10 TAX APPLIES ONLY TO THE PART OF THE PRICE ABOVE THE THRESHOLD MR MADDEN A GRADUATE OF UNIVERSITY OF TEXAS LAW SCHOOL WHO JOINED THE IRS IN 1974 CHURNED OUT A PRELIMINARY SET OF REGULATIONS ON JAN 2 1991 TWO MONTHS AFTER THE LEGISLATION WAS ENACTED AND JUST ONE DAY AFTER THE TAX TOOK EFFECT THE RULES CONSUMED 15 PAGES IN THE FEDERAL REGISTER SINCE THEN THE IRS HAS RECEIVED 588 LETTERS COMPLAINING ABOUT MR MADDEN'S HANDIWORK NO ONE WROTE TO PRAISE HIM MANY OF THE COMPLAINTS CAME FROM JEWELERS WHO WERE INCREDULOUS THAT THE TAX WOULD APPLY IF A CUSTOMER BROUGHT IN A BROOCH WITH 11000 WORTH OF DIAMONDS AND ASKED THAT THEY BE RESET AS A NECKLACE THE FAIR MARKET VALUE OF THE NECKLACE WHEN DELIVERED WOULD BE ABOVE 10000 SO THE TAX WOULD APPLY THE LAW STATES SPECIFICALLY THAT THE VALUE OF MATERIAL FURNISHED BY A CUSTOMER MUST BE INCLUDED IN THE CALCULATION THE MANNER IN WHICH THIS TAX IS BEING APPLIED HAS TO BE THE SILLIEST THING THE IRS HAS EVER DREAMED UP NEW JERSEY JEWELERS EUGENE AND HERBERT BRAUNSCHWEIGER WROTE TO MR MADDEN I WISH YOU PEOPLE WHO ARE SUGGESTING THIS INANE PROPOSAL WERE HERE TO STAND BEHIND OUR COUNTER TO SEE WHAT IT'S GOING TO BE LIKE THEY ADDED MR MADDEN WHO ISN'T TALKING MIGHT WISH THE SAME OF CONGRESS 9304070012 930407 CORRECTIONS & AMPLIFICATIONS AMERICAN FINANCIAL CORP HAD A 769 MILLION LOSS IN 1992 ON 393 BILLION OF REVENUE YEAREND ASSETS WERE 1171 BILLION IN YESTERDAY'S CORPORATE FOCUS ARTICLE IT WAS INCORRECTLY STATED THAT THE COMPANY HAD A 393 BILLION LOSS ON 117 BILLION OF REVENUE ENTERTAINMENT MARKETING INC NOW KLH COMPUTERS INC IS NOT OWNED BY ELIAS ZINN WHO WAS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY UNTIL MID1992 HE ALSO HELD A 245 STAKE IN THE COMPANY WHEN IT FILED FOR BANKRUPTCY COURT PROTECTION EARLIER IN 1992 HE WILL RECEIVE 950000 AFTER CERTAIN LEGAL EXPENSES OF AN AGREED 75 MILLION SETTLEMENT BETWEEN ENTERTAINMENT MARKETING AND SEVERAL PARTIES IN CONNECTION WITH THE FINANCIAL COLLAPSE OF CRAZY EDDIE INC WITH THE REST GOING TO THE TRUSTEE FOR ENTERTAINMENT MARKETING A MARCH 30 ARTICLE INCORRECTLY STATED THAT MR ZINN WAS THE OWNER OF ENTERTAINMENT MARKETING AND THUS IMPLIED HE WOULD RECEIVE THE FULL 75 MILLION 9304070011 930407 MARKETING ON FASHION BY TERI AGINS SPORTS TEAMS' LICENSED APPAREL MAKES A MOVE UP THE FASHION STANDINGS AFTER YEARS OF BEING HAWKED PRIMARILY TO FANS AS SOUVENIRS GARMENTS FEATURING THE LOGOS OF PROFESSIONAL AND COLLEGE ATHLETIC TEAMS ARE TAKING ON MORE ELEMENTS OF STYLE ONE POPULAR BRAND IN THE PAINT ADORNS ITS LINE OF BAGGY HIPHOP STYLES WITH SPORTS EMBLEMS A 45 DENIM SHIRT WITH VARIOUS TEAM LOGOS ON THE POCKET IS A SURPRISE SUCCESS THESE ARE CLOTHES THAT YOU WANT TO WEAR WHETHER THEY HAVE A LOGO OR NOT SAYS NANCY GRUNFELD COFOUNDER OF THE BRAND OWNED BY SHALOR DESIGNS OF NEW YORK STARTER HAS HIT A HOME RUN WITH ITS DUO HOOD A BLACK FLEECE PULLOVER WITH TWO HOODS IN CONTRASTING TEAM COLORS THE COMPANY THE FASHION LEADER IN LICENSED APPAREL WITH 1992 SALES OF 283 MILLION IS PREPARING FOR AN INITIAL PUBLIC OFFERING LATER THIS YEAR AT FOOT LOCKER STORES VERTICALSTRIPED RUGBY SHIRTS WITH LOGOS ARE MOVING BRISKLY THOUGH LICENSED APPAREL HAS BEEN HOT FOR YEARS THE FASHION TREND IS HELPING IT CONTINUE TO GROW SAYS PAUL MORIEKO A BUYER FOR THE WOOLWORTH UNIT WE HAVEN'T SEEN ITS PEAK YET SIXTY PERCENT OF THE CLOTHES SOLD BY THE CHAIN FEATURE TEAM LOGOS TRIPLE THE PROPORTION OF THREE YEARS AGO THE NATIONAL BASKETBALL ASSOCIATION ALONE HAS SEEN SALES OF LICENSED GOODS MORE THAN DOUBLE TO 14 BILLION LAST YEAR FROM 525 MILLION IN 1989 IT'S NO SURPRISE THE CHICAGO BULLS TWOTIME NBA CHAMPS ARE TOPS IN LICENSED BASKETBALL APPAREL BUT FLASHY COLORS HAVE PROPELLED BASKETBALL'S LOWERRANKED CHARLOTTE HORNETS INTO SECOND PLACE IN FASHION THE TEAM'S TEALANDPURPLE LOGO COMES FROM MENSWEAR DESIGNER ALEXANDER JULIAN MORE TEAMS UPDATE THEIR LOGOS TO CASH IN ON THE TREND THIS YEAR THE NBA'S NEW YORK KNICKS ADDED BLACK AND SILVER TO THEIR ORANGEANDBLUE EMBLEM AND FOR THE 1994 SEASON A RECORD 11 OF THE 26 NBA TEAMS HAVE APPLIED TO CHANGE THEIR LOGOS THE WAY TO MEN'S WALLETS MOST MEN DON'T READ MEN'S FASHION SPREADS IN MAGAZINES WOMEN DO AND THEY INFLUENCE WHAT MEN BUY SO COMING THIS FALL IS A PUBLICATION AIMED AT WOMEN WHO SHOP FOR MEN W THE MEN'S PORTFOLIO WILL MAKE ITS DEBUT IN SEPTEMBER AS A 40PAGE COMPANION TO W THE HIGHBROW 260000CIRCULATION WOMEN'S FASHION MAGAZINE FROM THE FAIRCHILD PUBLICATIONS UNIT OF CAPITAL CITIES/ABC FAIRCHILD WHICH SAW THE LAST VERSION OF ITS M MEN'S MAGAZINE FOLD LAST YEAR PLANS TO PUBLISH THE MEN'S PORTFOLIO TWICE A YEAR W THE MEN'S PORTFOLIO WILL DEVOTE ITSELF TO HELPING WOMEN SELECT FASHIONABLE ATTIRE FOR MEN SAYS STEPHANIE GEORGE GROUP PUBLISHER OF W AND WOMEN'S WEAR DAILY IT WILL INCLUDE HOWTO ARTICLES SO A WOMAN SHOPPING WITH A MAN WILL KNOW HOW A SUIT WITH DRAPE SHOULD FIT MS GEORGE SAYS AND TO CATCH FEMALE READERS' ATTENTION THE MEN'S PORTFOLIO WILL ENCOURAGE MENSWEAR ADVERTISERS TO USE FEMALE MODELS ALONGSIDE MEN IN THEIR ADS A FEW MENSWEAR APPAREL MAKERS SUCH AS PERRY ELLIS JHANE BARNES DESIGN AND PHILLIPSVAN HEUSEN HAVE ADVERTISED RECENTLY IN WOMEN'S MAGAZINES WITH POSITIVE RESULTS VAN HEUSEN SURPASSED RIVAL ARROW AS THE TOPSELLING DRESSSHIRT BRAND LAST YEAR AND THE COMPANY GIVES PARTIAL CREDIT TO ADS IN VOGUE ELLE AND OTHER WOMEN'S PUBLICATIONS BUT NOT EVERYONE HAS GIVEN UP ON MARKETING MENSWEAR TO MEN HEARST LAST MONTH INTRODUCED ESQUIRE GENTLEMAN A MEN'S FASHION SPINOFF OF ESQUIRE MAGAZINE THAT WILL HAVE TWO TEST ISSUES THIS YEAR TERRY MCDONELL ESQUIRE'S EDITOR IN CHIEF AGREES THAT WOMAN BUY CLOTHES FOR MEN BUT SAYS THAT THE FURTHER UPSCALE YOU GO THE LESS TRUE IT IS RETAIL CHAINS HIRE WELLKNOWN DESIGNERS TO ADD FASHION FIZZ TO THEIR MERCHANDISE DURING THE DESIGNER CRAZE OF THE '80S SEVERAL YOUNG DESIGNERS FOUNDED FASHION HOUSES ONLY TO FOUNDER AFTER A FEW YEARS NOW SOME OF THOSE FALLEN STARS ARE FINDING HOMES WITH RETAILERS SEEKING EXCLUSIVE RIGHTS TO CUTTINGEDGE STYLE NOT JUST PRIVATELABEL KNOCKOFFS ARRIVING THIS SPRING AT SAKS FIFTH AVENUE STORES ARE COLLECTIONS FROM GORDON HENDERSON AND NANCY HELLER BY ACTING AS THE DESIGNERS' MANUFACTURER AND RETAILER SAKS SAYS IT REDUCES OVERHEAD AND CAN SELL THEIR WARES FOR ONETHIRD LESS THAN THEY CHARGED ON THEIR OWN AT SAKS GORDON HENDERSON'S SPRING COLLECTION IS PRICED FROM 88 FOR A KNIT TOP TO 390 FOR A BLAZER MS HELLER'S KNITWEAR RANGES FROM 27 TO 190 THE CUSTOMER IS GETTING A SIGNATURE AT A GREAT BUY AND WE ARE GETTING A GOOD GROSS MARGIN SAYS PHILIP MILLER SAKS'S VICE CHAIRMAN DESIGNER PATRICIA CLYNE HAS LANDED AT ANN TAYLOR STORES WHERE SHE HEADS THE DESIGN TEAM FOR THE CHAIN'S PRIVATELABEL MERCHANDISE IN THE PAST OUR CLOTHES TENDED TO LOOK TOO 'LAST YEAR' SAYS SALLY FRAME KASAKS ANN TAYLOR'S CHIEF EXECUTIVE WE NEED A DESIGN EYE TO GIVE US FASHION LEADERSHIP ANN TAYLOR IS ALSO GETTING DESIGN INPUT FROM ANOTHER FORMER SEVENTH AVENUE TALENT CHARLOTTE NEUVILLE SHE NOW WORKS FOR CYGNE DESIGN WHICH DEVELOPS MERCHANDISE FOR ANN TAYLOR IN A JOINT VENTURE BUT FANS OF MS CLYNE AND MS NEUVILLE WON'T FIND THE DESIGNERS' NAMES ON LABELS OUR BRAND IS ANN TAYLOR MS KASAKS SAYS PUMPING POLO RALPH LAUREN WILL APPLY HIS MARKETING MUSCLE TO THE BOOMING ACTIVEWEAR BUSINESS OPENING A POLO SPORT SHOP IN NEW YORK THIS FALL ACROSS THE STREET FROM HIS MADISON AVENUE FLAGSHIP STORE FRENCH DRESSING A HOT ITEM IN LIMITED'S EXPRESS CHAIN IS A FREE BROCHURE HOW TO THINK SHOP AND DRESS LIKE A FRENCH WOMAN 9304070010 930407 LETTERS TO THE EDITOR WHEN SHOWN TOBACCO FDA DOG WON'T HUNT IN YOUR MARCH 1 ARTICLE REAPPOINTMENT OF KESSLER AS FDA CHIEF SIGNALS CONTINUED VIGOROUS REGULATION YOU WRITE THAT THE REGULATION OF THE NATION'S CONSUMER INDUSTRIES WILL CONTINUE TO BE AT LEAST AS VIGOROUS AND PROMINENT AS IT HAS BEEN FOR THE PAST TWO YEARS UNFORTUNATELY FOR OUR NATION'S HEALTH AND FOR THE PROTECTION OF AMERICAN CONSUMERS THE FOOD AND DRUG ADMINISTRATION'S REGULATORY VIGOR HAS NEVER AFFECTED THE TOBACCO INDUSTRY THE FDA IS OUR NATION'S LEAD AGENCY IN PROTECTING THE PUBLIC FROM UNSAFE OR HARMFUL PRODUCTS IT PLAYS A VITAL ROLE IN PRESERVING AND IMPROVING OUR NATIONAL HEALTH CARE SYSTEM BY REGULATING MYRIAD PRODUCTS FROM FOOD AND DRUGS TO MEDICAL DEVICES AND COSMETICS TO ENSURE THEIR SAFETY AND EFFICACY AND TO PROTECT CONSUMERS FROM MISLEADING LABELING AND ADVERTISING BUT THE TOPIC OF FDA REGULATION OF TOBACCO HAS BEEN INTENTIONALLY IGNORED IN THE PAST BECAUSE OF PURELY POLITICAL REASONS NAMELY THE UNMATCHED SPECIALINTEREST STATUS OF THE TOBACCO LOBBY DR DAVID KESSLER HAS THE POWER TO REVERSE THAT TREND AT LEAST AT THE FDA BUT HE NEEDS THE FULL SUPPORT OF THE CLINTON ADMINISTRATION JUST TO GET THE IDEA OFF THE GROUND TOBACCO PRODUCTS THE MOST PREVENTABLE CAUSE OF DEATH AND DISEASE IN AMERICA MUST BE BROUGHT IN LINE WITH THE WAY OTHER LEGAL PRODUCTS ARE REGULATED NO FEDERAL AGENCY HAS JURISDICTION OVER THE MANUFACTURE DISTRIBUTION SALE LABELING OR ADVERTISING OF TOBACCO PRODUCTS DESPITE THE FACT THAT THEY KILL MORE THAN 434000 AMERICANS EACH YEAR THE FDA EXTENSIVELY REGULATES ALL OTHER PRODUCTS THAT CONTAIN NICOTINE BUT HAS DONE NOTHING ABOUT TOBACCO THE TOBACCO INDUSTRY CONTINUES TO MAKE MISLEADING AND DECEPTIVE HEALTH CLAIMS FOR LOWTAR LOWNICOTINE CIGARETTES IMPLYING THAT THEY ARE SAFER OR LESS ADDICTIVE WHILE THE FDA REMAINS SILENT AND BECAUSE OF FDA INACTION TOBACCO COMPANIES CONTINUE TO ADD HUNDREDS OF CHEMICALS AND ADDITIVES TO CIGARETTES WITH NO REQUIREMENTS TO DISCLOSE THE INFORMATION TO THE PUBLIC OR TO PROVIDE SCIENTIFIC EVIDENCE ABOUT THEIR SAFETY IF THE CLINTON ADMINISTRATION AND SOME MEMBERS OF CONGRESS CAN TAKE ON THE PHARMACEUTICAL INDUSTRY ON THE GROUNDS THAT IT IS PROFITING AT THE EXPENSE OF PUBLIC HEALTH THEN THEY HAVE AN OBLIGATION TO TAKE ON THE TOBACCO INDUSTRY WHICH MARKETS AN ADDICTIVE DRUG AND DERIVES MASSIVE PROFITS AT THE EXPENSE OF DEATH AND DISABILITY FOR MILLIONS OF AMERICANS 9304070009 930407 UPS PROFIT FELL 26 IN 1992 DUE PARTLY TO OVERSEAS LOSSES ATLANTA UNITED PARCEL SERVICE OF AMERICA INC SAID NET INCOME FELL 26 TO 516 MILLION LAST YEAR REFLECTING A ONETIME CHARGE OF 249 MILLION FOR RETIREMENT BENEFITS AND DEEPENED LOSSES IN OVERSEAS OPERATIONS THE PRIVATELY HELD PACKAGE DELIVERY FIRM SAID EXCLUDING THE CHARGE PROFIT ROSE 9 TO 765 MILLION FROM 700 MILLION THE YEAR EARLIER RESULTS REFLECT DOMESTIC RATE INCREASES OF 5 FOR GROUND DELIVERY AND 26 TO 5 FOR AIR PACKAGES ALTHOUGH PACKAGE VOLUME IN THE US BARELY BUDGED VOLUME GREW IN THE LUCRATIVE AIR EXPRESS UNIT BUT SHRANK IN THE COMPANY'S BIGGEST OPERATION GROUND DELIVERY THIS YEAR UPS HAS BOOSTED PRICES BY 4 TO 7 WHICH IS EXPECTED TO LIFT PROFITS MORE REVENUE REACHED 165 BILLION FOR THE YEAR AN INCREASE OF 10 FROM 15 BILLION IN 1991 UPS SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY POSTED GROWING LOSSES OVERSEAS AS OPERATIONS SUFFERED FROM WEAK ECONOMIES IN EUROPE AND INCREASED EXPANSION COSTS UPS REPORTED A LOSS OF 276 MILLION OVERSEAS COMPARED WITH 254 MILLION IN THE YEAR EARLIER THE COMPANY HAD EXPECTED TO BE PROFITABLE IN EUROPE NEXT YEAR BUT THIS WEEK A SPOKESMAN SAID THAT UPS DOESN'T EXPECT TO SEE INTERNATIONAL PROFITS UNTIL 1996 STILL THROUGH DISCOUNTING AND EXPANDED OPERATIONS AND SERVICES THE COMPANY INCREASED INTERNATIONAL VOLUME BY 214 IN 1992 UPS IS RELYING INCREASINGLY ON PACKAGE DELIVERIES IN EUROPE FOR REVENUE AS INTERNATIONAL OPERATIONS COMPRISED 11 OF TOTAL REVENUE LAST YEAR COMPARED WITH LESS THAN 9 IN 1991 ANALYSTS SAY THE COMPANY IS STRUGGLING AGAINST BETTERKNOWN COMPETITORS SUCH AS DHL INTERNATIONAL AND TNT LTD LAST YEAR FEDERAL EXPRESS BOWED OUT OF MOST OF ITS EUROPEAN OPERATIONS AND ARRANGED FOR LOCAL FIRMS TO HANDLE MUCH OF ITS DELIVERY THERE IT MAKES ONE WONDER IS UPS WISE IN CONTINUING GROWTH IN AN AREA WHERE THERE IS EXCESS COMPETITION AND OVERCAPACITY SAID KEVIN MURPHY ANALYST WITH MORGAN STANLEY & CO UPS SHARES ARE HELD MAINLY BY EMPLOYEES AND AREN'T PUBLICLY TRADED THE COMPANY SAID IT BOUGHT BACK 331 MILLION SHARES FROM RETIREES LAST YEAR FOR 562 MILLION NEARLY TWICE AS MANY AS THE YEAR BEFORE AS OF YEAR END UPS HAD 595 MILLION SHARES OUTSTANDING AFTER RETIRING 21 MILLION 9304070008 930407 INTERNATIONAL FISONS STOCK TUMBLES AS DRUG MAKER HALTS NEW MEDICINE'S TRIALS SPECIAL TO THE WALL STREET JOURNAL LONDON FISONS PLC ABRUPTLY HALTED DEVELOPMENT OF AN ASTHMA MEDICINE SENDING THE BELEAGUERED BRITISH DRUG MAKER'S STOCK PLUNGING 13 OR 25 PENCE 38 CENTS IN TURBULENT LONDON TRADING FISONS HAD BEEN COUNTING ON TIPREDANE A CORTICOSTEROID DRUG TO BUTTRESS ITS CORE RESPIRATORY BUSINESS IN THE LATTER PART OF THE 1990S LICENSED BY FISONS FROM BRISTOLMYERS SQUIBB CO TIPREDANE WAS UNDERGOING CLINICAL TRIALS IN MORE THAN A DOZEN COUNTRIES BUT FISONS CHIEF EXECUTIVE CEDRIC SCROGGS SAID THE TRIALS FAILED TO SHOW THE DRUG WOULD BE THERAPEUTICALLY USEFUL MR SCROGGS SAID DEVELOPMENT COSTS HAD BEEN WRITTEN OFF AS THEY WERE INCURRED SO THE DECISION WOULDN'T HAVE MUCH IMPACT ON 1993 PROFITS INDEED SCRAPPING THE DRUG WOULD ALLOW REALLOCATION OF RESEARCH AND DEVELOPMENT RESOURCES TO A NUMBER OF OTHER PROMISING PRODUCTS HE SAID SOME ANALYSTS HAILED THE DECISION AS ANOTHER SIGN OF THE NEW RESOLUTE MANAGEMENT STYLE FOSTERED BY MR SCROGGS AND FISONS CHAIRMAN PATRICK EGAN DURING THE PAST 15 MONTHS TWO YEARS AGO FISONS WOULD HAVE CONTINUED THE DEVELOPMENT PROGRAM FOR SEVERAL MORE YEARS EVEN AFTER THEY REALIZED TIPREDANE WASN'T GOING TO FULFILL EXPECTATIONS THEY'RE BETTER OFF BITING THE BULLET NOW SAID A DRUG ANALYST AT A MAJOR LONDON SECURITIES FIRM STILL TIPREDANE'S DEMISE LEAVES FISONS WITH ONLY ONE NEW MEDICINE UNDER DEVELOPMENT REMACEMIDE AN EPILESY DRUG AT A TIME WHEN INTENSE PRICING PRESSURES MAKE DISCOVERY OF INNOVATIVE MEDICINES A PRECONDITION FOR SUCCESS THAT INTENSIFIES DOUBTS ABOUT FISONS' CHANCES OF SURVIVING AS AN INDEPENDENT COMPANY ALARMED INVESTORS REACTED BY DUMPING FISONS SHARES WHICH HAD BEEN MAULED ALONG WITH OTHER UK PHARMACEUTICAL ISSUES IN RECENT WEEKS FISONS STOCK PLUMMETED TO 169 PENCE IN LATE LONDON TRADING TUESDAY AND IS OFF 31 FOR THE YEAR 9304070007 930407 INTERNATIONAL DEGUSSA CIBAGEIGY TO LINK UP BRUSSELS THE EUROPEAN COMMUNITY COMMISSION CLEARED GERMANY'S DEGUSSA AG AND SWISS CHEMICAL GROUP CIBAGEIGY LTD'S MERGER OF THEIR WORLDWIDE GLASS AND CERAMICS COLORS AND COATING ACTIVITIES THE COMMISSION SAID THE LINKUP WOULDN'T CUT THE CHOICE FOR INDUSTRIAL COMPANIES BUYING COLORS AND COATINGS THE COMPANIES WILL FORM A JOINT VENTURE CALLED CERDEC AG KERAMISCHE FARBEN 9304070006 930407 TECHNOLOGY GE UNIT TECHNICIAN TO PAY 37 MILLION OVER FAULTY XRAYS A WALL STREET JOURNAL NEWS ROUNDUP A COURT IN ZARAGOZA SPAIN ORDERED A GENERAL ELECTRIC CO SUBSIDIARY AND ONE OF ITS TECHNICIANS TO PAY ABOUT 37 MILLION IN COMPENSATION TO THE FAMILIES OF 20 PEOPLE WHO DIED AFTER RECEIVING OVERDOSES OF RADIATION FROM FAULTY XRAY EQUIPMENT USED TO TREAT THEIR CANCERS THE GE TECHNICIAN ALSO WAS FOUND GUILTY OF CRIMINAL NEGLIGENCE ACCORDING TO A REPORT BY THE ASSOCIATED PRESS IN FAIRFIELD CONN GE SAID ITS SUBSIDIARY GECJR ESPANA WASN'T THE SUBJECT OF CRIMINAL CHARGES A GE SPOKESWOMAN SAID THE COMPANY HASN'T SEEN A COPY OF THE RULING AND HENCE HASN'T DECIDED WHETHER IT WILL APPEAL THE RADIATION EQUIPMENT INSTALLED AT A HOSPITAL IN ZARAGOZA IN 1977 WAS MADE BY THOMSON CGR A FRENCH COMPANY THAT GE ACQUIRED IN 1988 IN THE HOSPITAL 27 PATIENTS RECEIVED OVERDOSES IN A 10DAY PERIOD IN DECEMBER 1990 BECAUSE OF A FAULT IN THE CIRCUIT THAT REGULATES THE RADIATION DOSAGE OF THE 20 PATIENTS WHO SUBSEQUENTLY DIED THE DEATHS OF AT LEAST 10 COULD BE TRACED TO THE EXCESS RADIATION ACCORDING TO SPANISH OFFICIALS GE SAID THAT TYPE OF MACHINE USED IN ZARAGOZA HASN'T BEEN MADE SINCE 1984 ABOUT 25 SUCH MACHINES ARE STILL IN OPERATION INCLUDING THE UNIT IN ZARAGOZA IT SAID 9304070005 930407 SOUTHWEST AIRLINES TRAFFIC RISES DALLAS SOUTHWEST AIRLINES CO SAID ITS MARCH TRAFFIC INCREASED ABOUT 161 THE AIRLINE FLEW 135 BILLION REVENUE PASSENGER MILES COMPARED WITH 116 BILLION FOR MARCH 1992 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE THE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED FELL SLIGHTLY TO 668 FROM 675 FOR THE FIRST THREE MONTHS OF THE YEAR SOUTHWEST SAID ITS TRAFFIC INCREASED 175 TO 364 BILLION MILES FROM 31 BILLION THE LOAD FACTOR ALSO ROSE TO 643 FROM 628 9304070004 930407 SCIENCE NEW RESEARCH SUGGESTS THAT ROMANCE BEGINS BY FALLING NOSE OVER HEELS IN LOVE BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS ARE PUBLISHING NEW EVIDENCE THAT HUMANS HAVE AN UNDISCOVERED SENSE THAT DETECTS SEX PHEROMONES THE BODY SECRETIONS THAT ATTRACT THE OPPOSITE SEX THE NEW EVIDENCE IS OF MAJOR IMPORT TO EROX CORP A FLEDGLING MENLO PARK CALIF BIOTECHNOLOGY COMPANY WHOSE FOUNDER VENTURE CAPITALIST DAVID BERLINER CATALYZED MUCH OF THE RESEARCH EROX PLANS TO INTRODUCE A LINE OF PERFUMES AT THE END OF THIS SUMMER THAT IT SAYS WILL CONTAIN HUMAN PHEROMONES BUT THE NEW EVIDENCE ALSO RAISES UNSETTLING QUESTIONS ABOUT THE EFFECT OF NASAL OPERATIONS SUCH AS THE RHINOPLASTY OR NOSE JOBS THAT SOME PEOPLE UNDERGO FOR COSMETIC REASONS OR SURGERY TO REPAIR SUCH DEFECTS AS A DEVIATED SEPTUM THE MOST IMPORTANT OF THOSE QUESTIONS CENTERS ON WHETHER NASAL SURGERY MIGHT DESTROY THE PATIENT'S ABILITY TO DETECT PHEROMONES AND PERHAPS IMPAIR SEXUALITY PHEROMONES ARE CHEMICALS THAT ONE ANIMAL GIVES OFF TO CONVEY A MESSAGE TO OTHER MEMBERS OF THE SAME SPECIES THE MESSAGE MIGHT BE ONE OF FEAR OR WARNING FOR INSTANCE BUT THE PHEROMONES THAT HAVE FASCINATED SCIENTISTS FOR DECADES ARE THE SOCALLED SEX PHEROMONES THAT ONE SEX EMITS TO INFLUENCE THE OPPOSITE SEX SEX PHEROMONES HAVE BEEN FOUND IN MANY ANIMALS FROM INSECTS TO DOGS AND MONKEYS SCIENTISTS LONG HAVE DEBATED WHETHER HUMANS ALSO EMIT SEX PHEROMONES THEY HAVE ASSUMED THAT IF HUMANS DO EMIT AND DETECT PHEROMONES THEY ARE DOING SO VIA THE SAME NERVE SYSTEM THAT IS THE BASIS OF THE SENSE OF SMELL THE OLFACTORY SYSTEM HUMANS THEY WERE CONVINCED HAD LONG AGO LOST A SPECIAL SENSE ORGAN THAT ANIMALS USE TO DETECT PHEROMONES INCLUDING THE SEX PHEROMONES THIS VIEW THAT EVOLUTION HAS ERASED THE PHEROMONE SENSING ORGAN IN HUMANS IS BEING CHALLENGED BY SCIENTISTS ENLISTED BY DR BERLINER WHO FOUNDED BOTH EROX A PUBLICLY HELD COMPANY CONCENTRATING ON PHEROMONE PERFUMES AND PHERIN CORP A PRIVATELY HELD COMPANY THAT HE HOPES WILL EXPLOIT MEDICAL USES OF PHEROMONES DR BERLINER A FORMER PROFESSOR OF ANATOMY DISCOVERED PHEROMONELIKE CHEMICALS WHILE DOING RESEARCH ON HUMAN SKIN THREE DECADES AGO THE SCIENTISTS SAY THEY ARE COMING UP WITH NEW EVIDENCE THAT A TINY STRUCTURE IN THE NOSE IS THE LONGLOST HUMAN SENSE ORGAN THAT DETECTS PHEROMONES ABOUT TWO YEARS AGO SOME RESEARCHERS BEGAN LOOKING FOR THIS TINY ORGAN IN HUMANS AT DR BERLINER'S BEHEST CONTRARY TO WHAT HAD BEEN ASSUMED FOR DECADES THEY DISCOVERED THAT THE ORGAN IS PRESENT IN ALL HUMANS THE ORGAN LOOKS LIKE A TINY PIT JUST INSIDE EACH NOSTRIL THE PIT BARELY VISIBLE TO THE NAKED EYE APPEARS TO BE THE HUMAN COUNTERPART TO THE SOCALLED VOMERONASAL ORGAN OR VNO IN ANIMALS THE VNO IS DEVOTED EXCLUSIVELY TO SENSING PHEROMONES AND IS DISTINCTLY SEPARATE FROM THE OLFACTORY ORGAN THAT DETECTS ODORS NEW EXPERIMENTS ARE FINDING THAT THIS PUTATIVE VNO IN ADULT HUMANS HAS FUNCTIONING SENSORY NERVES ACCORDING TO A REPORT TO BE PUBLISHED IN THE APRIL ISSUE OF THE JOURNAL NEUROREPORT THE REPORT IS FROM A SCIENTIFIC TEAM HEADED BY THOMAS V GETCHELL A PHYSIOLOGIST AND NEUROSCIENTIST AT THE UNIVERSITY OF KENTUCKY MEDICAL SCHOOL IN LEXINGTON THE TEAM INCLUDES DR BERLINER AS WELL AS SCIENTISTS FROM THE UNIVERSITY OF UTAH WHO HAVE BEEN WORKING WITH DR BERLINER AND HIS COMPANIES ON THE PHEROMONE MYSTERY IN THE NEW REPORT THE RESEARCHERS SAY THAT SOME MYSTERIOUS CELLS SEEN IN THE VNO TISSUES FROM ADULT HUMANS NOT ONLY LOOK LIKE NERVE CELLS BUT HAVE MANY OF THE SAME CHEMICAL AND MOLECULAR PROPERTIES AS FUNCTIONING NERVE CELLS INDEED THE SAME PROPERTIES ARE SEEN IN THE NERVE CELLS IN THE NEARBY OLFACTORY ORGAN THAT GIVES HUMANS THEIR SENSE OF SMELL ACCORDING TO THE REPORT FEW ARE MORE SURPRISED TO DISCOVER THAT HUMANS HAVE A VNO WITH WHAT APPEAR TO BE FUNCTIONING NERVE CELLS THAN DR GETCHELL HIMSELF I TEACH MEDICAL STUDENTS AND OVER THE YEARS I'VE TAUGHT THEM THAT THE VNO IS TRANSIENTLY PRESENT IN THE HUMAN EMBRYONIC STAGE BUT THAT IT DEGENERATES IN THE FETAL STAGE AND ISN'T FUNCTIONAL IN THE ADULT HE SAYS THE NEW EVIDENCE IS VITAL TO EROX ITS CLAIM THAT THE SECRET COMPOUNDS IN ITS NEW PERFUMES ARE HUMAN SEX PHEROMONES IS BASED ON EXPERIMENTS SHOWING THEY ACTIVATE THE HUMAN VNO THEREFORE THE COMPANY NEEDS PROOF THAT THE ORGAN ACTUALLY FUNCTIONS IN HUMANS DR BERLINER SAYS THAT IN THE MEANTIME HE AND HIS FELLOW RESEARCHERS AT EROX/PHERIN AND THE UNIVERSITY OF UTAH HAVE JUST FINISHED A NEW ROUND OF HUMAN EXPERIMENTS SHOWING THAT THE PUTATIVE PHEROMONES HAVE SOME STARTLING EFFECTS ON THE HUMAN VNO THE CHEMICALS ARE EXTRACTED FROM HUMAN SKIN CELLS IN THE EXPERIMENTS MICROSCOPIC ELECTRODES WERE ATTACHED TO THE NERVES OF BOTH THE VNO AND THE OLFACTORY ORGAN IN SIX WOMEN AND NINE MEN VOLUNTEERS WHEN THE VOLUNTEERS SNIFFED ODORS LIKE THE MUSK USED IN CONVENTIONAL PERFUMES THE OLFACTORY NERVES WERE TURNED ON BUT THE VNO NERVES REMAINED QUIET WHEN THE VOLUNTEERS SNIFFED THE PUTATIVE PHEROMONES HOWEVER THE VNO NERVES SUDDENLY TURNED ON WHILE THE OLFACTORY NERVES REMAINED QUIET BUT MORE IMPORTANT FOR THE PERFUME BUSINESS TWO OF THE PUTATIVE PHEROMONES ACTIVATED THE VNO ONLY IN THE SIX WOMEN DR BERLINER SAYS AND TWO OTHERS ACTIVATED THE VNO ONLY IN MALES HE SAYS ALTHOUGH THE QUESTION REMAINS AS TO HOW THE ACTIVATION OF THE VNO NERVES AFFECTS THE BRAIN DR BERLINER CITES THIS EXPERIMENT AS SUPPORT FOR HIS CONTENTION THAT THE PUTATIVE PHEROMONES ARE SEX ATTRACTANTS HE THEORIZES THAT HUMANS EMIT PHEROMONES THROUGH THE SKIN A PHENOMENON THAT HAS GONE UNNOTICED BECAUSE OF CLOTHING PERFUMES AND BATHING THE COMPOUNDS THAT AFFECT ONLY WOMEN HE BELIEVES ARE PHEROMONES EMITTED BY MEN WHILE THOSE THAT AFFECT ONLY MALES ARE EMITTED BY WOMEN DR BERLINER SAYS THAT CONTRARY TO POPULAR BELIEFS AND PROBABLY HOPES THE SEX PHEROMONES ARE NOT APHRODISIACS THAT WORK ON THE OPPOSITE SEX OF THE WEARER INSTEAD NATURE SEEMS TO HAVE DESIGNED THE HUMAN SEX PHEROMONES ONLY TO PUT THE OPPOSITE SEX INTO A MOOD CONDUCIVE TO ROMANCE AT LEAST ALL THOSE WHO HAVE SNIFFED THEM SAY THEY SUDDENLY GET A GOOD FEELING A RELAXED SENSE OF WELLBEING DR BERLINER SAYS THE PHEROMONES DON'T ACTIVATE THE OLFACTORY SYSTEM AND ARE THEREFORE ODORLESS SO EROX PLANS TO ADD THEM TO EXISTING PERFUME FORMULATIONS DR BERLINER SAYS IT WILL BRING OUT TWO LINES OF PERFUMES ONE FOR MEN AND ONE FOR WOMEN CONTRARY TO WHAT ONE MIGHT EXPECT HOWEVER THE PERFUMES WILL BE FORMULATED TO MAKE ONLY THE WEARER FEEL GOOD THE REASON FOR THIS DR BERLINER SAYS IS THAT THE SMALL AMOUNT OF PHEROMONE IN THE PERFUME DIFFUSES SO RAPIDLY THAT IT WON'T HAVE ANY EFFECTS MORE THAN A FOOT AWAY FROM THE WEARER THUS ANY MALE WHO TRIES TO USE A PHEROMONE PERFUME TO INSPIRE ROMANCE IN A FEMALE WOULD HAVE TO DOUSE HIS WHOLE BODY IN A PERFUME WITH A FRAGRANCE DESIGNED FOR WOMEN OUTSIDE EXPERTS TERM THE NEW RESEARCH EXCITING THIS WHOLE SYSTEM IS GOING TO RECEIVE A CONSIDERABLE AMOUNT OF SCRUTINY BY MANY RESEARCH GROUPS SAYS CHARLES J WYSOCKI OF THE MONELL CHEMICAL SENSES CENTER IN PHILADELPHIA ONE OF THE COUNTRY'S LEADING CENTERS RESEARCHING ODORS TASTES AND PHEROMONES DR WYSOCKI'S EXPERIMENTS HAVE FOUND THAT THE SEX LIFE OF LABORATORY ANIMALS DECLINES IF THEIR VNO IS REMOVED THIS NEW EVIDENCE HE SAYS WAS DISCUSSED LAST MONTH AT A SCIENTIFIC MEETING ON A HUMAN CONGENITAL DISORDER CALLED KALLMANN'S SYNDROME ONE ASPECT OF THIS DISORDER IS THAT THE PERSON IS BORN WITHOUT A DEVELOPED OLFACTORY ORGAN AND LACKS A SENSE OF SMELL BUT WHAT INTRIGUED THE SCIENTISTS HE SAYS IS THAT KALLMANN'S SYNDROME PATIENTS ALSO ARE BORN WITHOUT A VNO AND THEY FAIL TO DEVELOP MATURE SEXUAL ORGANS THIS SPURS BOTH DRS GETCHELL AND BERLINER TO SUGGEST THAT SOME RESEARCHERS SHOULD SEE IF THE REMOVAL OF THE VNO IN HUMANS HAS ANY EFFECT ON THE PATIENTS' SEX LIFE THEY NOTE THAT SURGEONS WHO ARE UNAWARE THAT THE VNO EVEN EXISTS IN THE HUMAN MAY BE UNWITTINGLY REMOVING IT DURING COSMETIC NOSE OPERATIONS OR SURGERY TO REPAIR THE SMASHED NOSES OF ATHLETES OR TO OVERCOME BREATHING PROBLEMS 9304070003 930407 WHO'S NEWS BRISTOLMYERS SQUIBB CO BRISTOLMYERS SQUIBB CO PRINCETON NJ JOACHIM VON ROY WAS NAMED PRESIDENT FOR EUROPE A NEW POSITION AT THIS COMPANY'S BRISTOLMYERS SQUIBB PHARMACEUTICAL GROUP MR VON ROY 47 YEARS OLD PREVIOUSLY WORKED FOR BRISTOLMYERS SQUIBB PHARMACEUTICAL GROUP AS PRESIDENT FOR CENTRAL AND EASTERN EUROPE BRISTOLMYERS SQUIBB ALSO HAS INTERESTS IN NUTRITIONAL PRODUCTS CONSUMER PRODUCTS AND MEDICAL DEVICES 9304070002 930407 WHO'S NEWS AUTODESK INC AUTODESK INC SAUSALITO CALIF CRAWFORD BEVERIDGE A LONGTIME SUN MICROSYSTEMS INC EXECUTIVE WHO MOST RECENTLY SERVED AS CHIEF EXECUTIVE OFFICER OF SCOTTISH ENTERPRISE AN ECONOMIC DEVELOPMENT AGENCY IN SCOTLAND WAS NAMED A DIRECTOR OF THIS MAKER OF PERSONAL COMPUTER SOFTWARE 9304070001 930407 HEARD ON THE STREET CARVING UP TURNER SCRAPS FOR SMALL INVESTORS BY RANDALL SMITH AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL WILL TURNER BROADCASTING SYSTEM SHAREHOLDERS GET A FAIR SHAKE IF TWO BIG TURNER SHAREHOLDERS TIME WARNER AND TELECOMMUNICATIONS CARVE UP THE COMPANY THE TALKS BETWEEN THE MEDIA GIANTS REPORTED IN YESTERDAY'S WALL STREET JOURNAL ALREADY HAVE INVESTMENT BANKERS SALIVATING OVER THE POSSIBLE SALE OF 7 BILLION OF GLOSSY MEDIA PROPERTIES SUCH AS CABLE NEWS NETWORK THE OLD MGM MOVIE LIBRARY HANNABARBERA CARTOONS AND SUPERSTATION TBS BUT ANY SUCH TALKS COULD POSE A PROBLEM FOR TURNER'S SMALLER SHAREHOLDERS ANALYSTS SAY MR TURNER OWNS 37 OF THE STOCK TCI 225 AND TIME WARNER 189 IF THESE BIG HOLDERS DECIDE TO ALLOCATE THE PIECES AMONG THEMSELVES ON FAVORABLE TERMS SOME SAY THE HOLDERS OF THE REMAINING 216 COULD GET LEFT OUT IN THE COLD PARTLY IN CONSIDERATION OF SUCH CONCERNS TURNER'S CLASS B COMMON STOCK ROSE ONLY 5/8 YESTERDAY TO 23 1/8 ON VOLUME OF 665000 SHARES ON THE AMERICAN STOCK EXCHANGE ONE MERGER EXPERT CONTENDS THAT TURNER'S BOARD WHICH INCLUDES MR TURNER AND THE TWO OTHER MEDIA GIANTS MIGHT BE OBLIGED TO ENTERTAIN BIDS FOR THE ENTIRE COMPANY BEFORE PARCELING OUT THE TWO BIGGEST PIECES NEWS AND ENTERTAINMENT TO TIME WARNER AND TCI UNDER A BODY OF TAKEOVER LAW THAT DEVELOPED IN THE 1980S AND BECAME KNOWN AS THE REVLON DOCTRINE CORPORATE DIRECTORS HAVE A DUTY TO SEEK THE HIGHEST PRICE FROM ALL BIDDERS IF THEY DECIDE TO PUT THE COMPANY UP FOR SALE OR SELL IT IN PIECES HOWEVER SOME ANALYSTS SAID IT MIGHT BE POSSIBLE FOR THE THREE BIG HOLDERS TO DESIGN SOME SORT OF CARVEUP PLAN THAT DIDN'T TRIGGER THAT OBLIGATION TCI CHIEF EXECUTIVE OFFICER JOHN MALONE IN PARTICULAR HAS A REPUTATION FOR BEING ABLE TO ACQUIRE MEDIA PROPERTIES WITHOUT PAYING BIG PREMIUMS TO MINORITY SHAREHOLDERS TURNER STOCKHOLDERS HAVE ANOTHER STRIKE AGAINST THEM IN TRYING TO RECEIVE A BIG PREMIUM PRICE FOR THEIR STOCK IN A TAKEOVER OF THE ENTIRE COMPANY TURNER STOCK WHICH HAS MULTIPLIED MORE THAN TENFOLD SINCE MR TURNER RAN UP THE COMPANY'S DEBT IN ACQUIRING THE MGM FILM LIBRARY IN THE MID1980S ALREADY TRADES AT A RICH PRICE 14 TIMES ITS ESTIMATED 1993 CASH FLOW INCOME PLUS DEBT REPAYMENTS GOODWILL AND TAXES AND A WHOPPING 33 TIMES 1993 REVENUE MEDIA ANALYST NANDITA PARKER OF GERARD KLAUER MATTISON SAYS YESTERDAY'S CLOSING PRICE OF 23125 REPRESENTS ONLY A SLIGHT DISCOUNT OF 14 TO THE 2681 A SHARE SHE ESTIMATES TURNER WOULD FETCH IN A SALE OF ITS ASSETS MS PARKER AND SEVERAL OTHER ANALYSTS DON'T ADVOCATE BUYING THE STOCK BECAUSE OF THOSE LOFTY MULTIPLES INDEED SHE SAYS IF THE SHARE PRICE REACHED 24 SHE WOULD RECOMMEND SELLING THERE'S NO WAY YOU CAN ENVISION SOMEBODY BUYING TURNER FOR ABOVE THE CURRENT MARKET SINCE TODAY'S LEVEL IS ALREADY IN THE UPPER ECHELONS SAYS JOHN REIDY WHO FOLLOWS MEDIA STOCKS AT SMITH BARNEY THERE ARE PLENTY OF REASONS TO DOUBT AN AUCTION WILL DEVELOP FOR TURNER NOT ONLY COULD THE BIG SHAREHOLDERS TOGETHER BLOCK ANY TRANSACTION BUT BOTH ARE MAJOR CUSTOMERS OF TURNER ENTERTAINMENT AND NEWS NETWORKS AND MIGHT REFUSE TO CARRY THE PROGRAMS ON THEIR CABLE SYSTEMS TO THWART A BUYER THEY DIDN'T LIKE TIME WARNER HOLDS AN EFFECTIVE RIGHT OF FIRST REFUSAL TO BUY CNN BUT COMPANY SOURCES SAY THAT IN THE CURRENT DISCUSSION OVER TURNER ASSETS TIME WARNER IS MORE INTERESTED IN THE ENTERTAINMENT NETWORKS AND THE MGM LIBRARY WHICH FIT MORE CLOSELY WITH ITS HOME BOX OFFICE CABLE NETWORK AND ITS WARNER BROS MOVIE STUDIO THE SOURCES SAID TCI WOULD MORE LIKELY END UP WITH CNN WITH MR TURNER POSSIBLY PLAYING A CONTINUING ROLE SAYS MARIO GABELLI WHOSE FUNDS OWN ABOUT 200000 TURNER SHARES ONE ASSUMES THERE WILL BE A MODICUM OF FAIRNESS AND THEY WILL BE PAYING REASONABLY CLOSE TO VALUE BUT HE DOES ADD THAT TIME AND TCI PROBABLY WILL STRUCTURE A TRANSACTION TO THEIR TAX ADVANTAGE AND NOT TO PUBLIC STOCKHOLDERS' AS FOR COMPETING BIDDERS MR GABELLI SAYS THERE PROBABLY AREN'T GOING TO BE A LOT OF PLAYERS BECAUSE OF THE TRANSACTION SIZE AND BECAUSE TURNER HAS THESE TWO POWERFUL GODFATHERS WHO WILL DO ALL THEY CAN TO MAKE SURE THEY DON'T LOSE CONTROL OF THE FRANCHISE ONE ENTERTAINMENT COMPANY EXECUTIVE WHO HAS HELD TALKS WITH TURNER AGREES IF I WANTED TO MAKE A BID AT 52 A SHARE IT WOULD STILL BE SUBJECT TO THE APPROVAL OF THESE TWO LARGE HOLDERS HE SAID THEY'D TIE YOU UP IN COURT FOR SO LONG YOU'D NEVER GET THROUGH IT ACCORDING TO SMITH BARNEY'S MR REIDY TURNER'S HIGHPRICED STOCK COULD SERVE AS AN EXCELLENT CURRENCY FOR ACQUIRING ANOTHER MEDIA COMPANY SUCH AS PARAMOUNT COMMUNICATIONS MR TURNER HAS EXPRESSED INTEREST IN EXPANDING HIS PROGRAMMING AND FILM LIBRARY BASE AND HELD SOME EXPLORATORY TALKS WITH PARAMOUNT SUCH AN ACQUISITION WOULD ONLY BE POSSIBLE IF TIME WARNER SOLD ITS TURNER STAKE SINCE TIME WARNER ALREADY OWNS A MAJOR MOVIE STUDIO AND COULD FACE ANTITRUST RESTRICTIONS MR TURNER'S MERCURIAL NATURE MAKES THE OUTCOME OF THE TALKS HARD TO PREDICT MANY ANALYSTS SAY BUT THEY VIEW HIM AS EAGER TO FREE HIMSELF OF THE SHACKLES OF THE EFFECTIVE VETOES THAT TIME WARNER AND TCI NOW CAN EXERCISE OVER HIS DECISIONS COMPLICATING THE SITUATION THEY SAID IS THAT TIME WARNER AND TCI ARE INTENSE RIVALS AND MAY NOT BE ABLE TO AGREE ON AN EQUITABLE SPLIT THAT ALSO GIVES MR TURNER WHAT HE WANTS TIME WARNER AND TCI ARE SAID TO BE DISCUSSING A PLAN THAT WOULD PAY MR TURNER IN STOCK OF THEIR TWO COMPANIES BUT IT ALSO ISN'T CLEAR HOW SUCH A TRANSACTION WOULD BE STRUCTURED NEITHER TIME WARNER NOR TCI IS EXPECTED TO OFFER ANY CASH FOR THE TURNER ASSETS BECAUSE OF THEIR ALREADY HEAVY DEBTS ALSO POSSIBLY INTERESTED IN BUYING TURNER PROPERTIES ARE TELECOMMUNICATIONS CONCERNS NOTABLY AMERICAN TELEPHONE & TELEGRAPH AND THE SEVEN BABY BELLS WHOSE INDUSTRY IS EXPANDING TO INCLUDE VIDEO TRANSMISSION SERVICES TELEPHONE COMPANIES COULD HAVE AN INCENTIVE TO BUY TURNER NOW IF THEY BELIEVE PRICES FOR PROGRAMMING ASSETS WILL SKYROCKET AS PHONE COMPANIES ENTER THE VIDEO BUSINESS AND AS CABLE COMPANIES EXPAND THEIR OFFERINGS LOCAL PHONE COMPANIES INCLUDING THE BABY BELLS AND GTE FACE FEDERAL LIMITS ON THE STAKES THEY CAN OWN IN ANY VIDEO PROGRAMMING THEY CARRY WITHIN THEIR TELEPHONESERVICE TERRITORIES UNDER THE 1984 CABLE ACT AND THE 1992 FCC VIDEODIALTONE RULES THE CAP IS 5 THAT DOESN'T APPLY HOWEVER TO CABLE SYSTEMS OUTSIDE THEIR SERVICE TERRITORIES SOUTHWESTERN BELL FOR INSTANCE COULD OWN CNN AND CARRY IT OVER CABLE SYSTEMS IT PLANS TO BUY IN THE WASHINGTON SUBURBS THE BABY BELLS OR GTE MAY STILL BE INTERESTED IN BUYING TURNER ASSETS TO TRY TO SPEED CHANGES IN THE LAW TO GIVE THEM GREATER FREEDOM TO COMPETE IN THE CABLE TV BUSINESS NEVERTHELESS IT'S DIFFICULT TO GAUGE AT&T'S AND THE BELLS' INTEREST IN TURNER WITH ITS STILLHEFTY 18 BILLION IN LONGTERM DEBT A TELECOMMUNICATIONS PURCHASER WOULDN'T GET EXCLUSIVE USE OF CNN OR OTHER PROGRAMMING CONGRESS MADE SURE OF THAT LAST YEAR WITH THE 1992 CABLE REREGULATION BILL AND FOR AT&T THE ACQUISITION WOULDN'T BE LIKELY TO BOOST USE OF ITS LONGDISTANCE NETWORK MARY LU CARNEVALE CONTRIBUTED TO THIS ARTICLE TURNER'S B SHARRES AT TODAY'S 2313 ARE ABOUT 368 BELOW BREAKUP VALUE BY THIS RECKONING 9304070129 930324 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB WITH THE CHAOS IN RUSSIA WORLD ATTENTION IS RIVETED ON PRESIDENT BORIS YELTSIN'S RELATIONS WITH THE RUSSIAN MILITARY THAT RISING TENSION IS STARTING TO FOCUS ATTENTION ON ANOTHER SENSITIVE TOPIC THE STRAINED RELATIONSHIP BETWEEN PRESIDENT CLINTON AND THE ARMED FORCES MR CLINTON'S PROBLEM IS BEST ILLUSTRATED BY THE APOCRYPHAL TALES OF WHITE HOUSE RUDENESS TOWARD THE MILITARY RICOCHETING THROUGH THE ARMED FORCES GEN COLIN POWELL CHAIRMAN OF THE JOINT CHIEFS OF STAFF HAS BEEN ASKED NOT TO WEAR HIS UNIFORM TO THE WHITE HOUSE SO ONE STORY GOES CLINTON FAMILY MEMBERS REFUSE TO RIDE IN CARS WITH UNIFORMED OFFICERS ACCORDING TO ANOTHER AND MILITARY SOCIAL AIDES AT THE WHITE HOUSE WERE TOLD NOT TO WEAR THEIR UNIFORMS AT FUNCTIONS NONE OF THESE STORIES IS TRUE MANY SEEM TO HAVE BLOSSOMED OUT OF A SINGLE INCIDENT AT ONE POINT PENTAGON OFFICIALS SAY LT GEN BARRY MCCAFFREY AN ASSISTANT TO GEN POWELL AND A DECORATED VIETNAM WAR VETERAN WAS WAITING AT THE WHITE HOUSE FOR A MEETING AND ATTEMPTED TO STRIKE UP A CONVERSATION WITH A YOUNG AIDE THE AIDE CUT OFF THE CONVERSATION EXPLAINING THAT SHE DIDN'T TALK TO MILITARY PEOPLE THE FACT THAT PEOPLE IN UNIFORM ARE PREPARED TO BELIEVE RUMORS ILLUSTRATES THE CULTURAL GAP BETWEEN THE COMMANDER IN CHIEF AND HIS TROOPS PRESIDENT CLINTON CAN ILL AFFORD TO LET THE SITUATION FESTER ANARCHY OR EVEN A TURN AWAY FROM REFORM IN RUSSIA WOULD REOPEN A WHOLE SET OF POLITICALLY DIFFICULT QUESTIONS RANGING FROM DEFENSE SPENDING TO TROOP LEVELS ABROAD THAT THE PRESIDENT CAN ADDRESS FAR MORE EFFECTIVELY IF AMERICANS SENSE THAT HE IS WORKING COMFORTABLY WITH THE NATION'S ARMED FORCES MR CLINTON IS HARDLY NAIVE HE SENSES THAT HE HAS A PROBLEM HE WAS ASKED ABOUT IT BLUNTLY AT A PRESS CONFERENCE YESTERDAY AND PRIVATELY DEFENSE SECRETARY LES ASPIN HAS GIVEN HIM A LIST OF ACTIONS HE MIGHT TAKE TO CLOSE THE CULTURAL GAP THE UNDERLYING PROBLEM FOR MR CLINTON IS THAT BEYOND THE RUMORS MILITARY PEOPLE ARE NURSING SUBSTANTIVE GRIEVANCES THESE GRIEVANCES FAR TRANSCEND PREDICTABLE SUSPICIONS STEMMING FROM MR CLINTON'S EFFORTS TO AVOID THE DRAFT AND SERVICE IN VIETNAM THE MOST OBVIOUS IS THE PRESIDENT'S DRIVE TO LEGALIZE THE PRESENCE OF GAYS IN THE MILITARY ALREADY UNPOPULAR AT THE PENTAGON THE PLAN WILL ONLY GROW MORE CONTENTIOUS AMID A PLANNED GAY SITIN AT THE PENTAGON AND CONGRESSIONAL HEARINGS ON THE SUBJECT THE PLAN COULD BECOME A REAL NIGHTMARE IF SOME SENIOR OFFICERS FOLLOW THROUGH ON PRIVATE HINTS THAT THEY MIGHT RESIGN IF IT'S IMPLEMENTED THERE ARE OTHER ISSUES THAT HIT EVEN CLOSER TO HOME FOR THE MILITARY MR CLINTON'S TASK IS TO SHRINK THE MILITARY TO POSTCOLD WAR SIZE AND HE PROPOSES TO DO THE JOB BY TAKING AT LEAST 60 BILLION OUT OF DEFENSE PROGRAMS BY 1997 ON A MORE PERSONAL LEVEL HIS FEDERAL PAY FREEZE HITS NOT JUST GOVERNMENT BUREAUCRATS BUT PEOPLE IN UNIFORM AS WELL IN A SHRINKING MILITARY PROMOTIONS ALSO ARE HARDER TO COME BY MEANING THAT SOME OFFICERS NOW COULD FIND THEMSELVES STUCK AT THE SAME PAY GRADE FOR YEARS ON TOP OF THAT MILITARY OFFICERS IN THE PENTAGON SEE THAT VIRTUALLY NO CIVILIANS HAVE BEEN CONFIRMED YET FOR TOP JOBS IN THE DEFENSE DEPARTMENT THAT IS SENDING A SIGNAL THAT DEFENSE JOBS SIMPLY DON'T HAVE A HIGH PRIORITY IN THE CLINTON ADMINISTRATION BUT SOME IN THE MILITARY ALSO HAVE TO BEAR RESPONSIBILITY FOR THE STRAINS WHAT PARTICULARLY RANKLES SEVERAL CLINTON ADVISERS ARE COMMENTS THEY HAVE SEEN IN PRINT FROM SENIOR OFFICERS QUESTIONING THE POLICIES OF THE PRESIDENT COMMENTS THAT SUGGEST INSUBORDINATION THERE ARE SIGNS MR CLINTON MAY START DOING MORE TO BRIDGE THE CULTURAL DIVIDE THOUGH THE WHITE HOUSE SAYS NOTHING IS IN THE WORKS FORMALLY CLINTON AIDES ARE TALKING OF ARRANGING A VISIT TO THE PENTAGON AND PLANNING OTHER MOVES TO SHOW CONCERN FOR THOSE IN UNIFORM IN AN EFFORT TO BRIDGE THE CULTURAL DIVIDE MR CLINTON MAY HAVE A VALUABLE ASSET IN GEN POWELL DESPITE SOME POLICY DIFFERENCES THE GENERAL HAS DEVELOPED A STRONG RESPECT FOR MR CLINTON'S INTELLECTUAL PROWESS AND HAS HAD LONG AND PRODUCTIVE PRIVATE TALKS WITH HIM ACQUAINTANCES SAY AND HELP IS POPPING UP IN UNEXPECTED QUARTERS AS WELL AFTER MR CLINTON RECENTLY VISITED THE AIRCRAFT CARRIER USS ROOSEVELT NEWS STORIES RECOUNTED DISPARAGING COMMENTS MADE ABOUT THE PRESIDENT BY SOME SAILORS NOW TO MR CLINTON'S DEFENSE ARISES THE UNLIKELY FIGURE OF SEN JOHN WARNER A VIRGINIA REPUBLICAN AND FORMER SECRETARY OF THE NAVY WHO WAS ALONG ON THE VISIT HE HAS PRODUCED A STATEMENT ASSERTING THAT ON THE WHOLE MR CLINTON GOT AN ENTHUSIASTIC RECEPTION HOWEVER SEN WARNER ALSO OFFERED THIS SAGE ADVICE TO THE PRESIDENT GET TO KNOW BETTER THOSE WHO SERVE YOU SEE RELATED LETTER LETTERS TO THE EDITOR GOOD VIBES BETWEEN WHITE HOUSE MILITARY WSJ APRIL 6 1993 9303240122 9304070030 930330 CRAZY EDDIE SUITS BY SHAREHOLDERS DEBTHOLDERS SETTLED FOR UP TO 42 MILLION BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ATTORNEYS FOR CRAZY EDDIE INC SAID THAT A CLASSACTION SETTLEMENT FOR AS MUCH AS 42 MILLION WAS REACHED WITH SEVERAL DEFENDANTS WHO HAD BEEN SUED OVER THE CONSUMERELECTRONICS CHAIN'S COLLAPSE THE SETTLEMENT WOULD COVER ALL CLASSACTION CLAIMS OUTSTANDING BY SHAREHOLDERS AND DEBTHOLDERS AGAINST VARIOUS DEFENDANTS INCLUDING FORMER OFFICERS AND DIRECTORS BUT IT DOESN'T INCLUDE CLAIMS AGAINST EDDIE ANTAR THE FOUNDER AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR ANTAR CURRENTLY IS BEING HELD BY FEDERAL AUTHORITIES IN NEW JERSEY PENDING HIS TRIAL ON SECURITIES FRAUD AND RACKETEERING CHARGES HE RECENTLY WAS EXTRADITED FROM ISRAEL WHERE HE HAD FLED IN 1990 ALL DEFENDANTS IN THE SETTLEMENT DENIED LIABILITY FOR ACTIONS ALLEGED IN THE LAWSUITS WHICH CHARGED THEY HAD CHEATED INVESTORS BY INFLATING THE VALUE OF THE COMPANY WHICH WENT BANKRUPT IN 1987 BESIDES FORMER OFFICERS AND DIRECTORS THE DEFENDANTS INCLUDE KPMG PEAT MARWICK CRAZY EDDIE'S LAST ACCOUNTANTS AND PENN & HOROWITZ THE COMPANY'S ACCOUNTANTS PRIOR TO ITS GOING PUBLIC IN 1984 ALSO INCLUDED ARE SOME FORMER CRAZY EDDIE EMPLOYEES AND SOME PEOPLE RELATED TO MR ANTAR AND HIS FAMILY ACCORDING TO ATTORNEYS INVOLVED IN THE SETTLEMENT THE SETTLEMENT INVOLVES SUITS FILED IN 1987 AND 1988 BESIDES THE CLASSACTION SETTLEMENT TWO INSTITUTIONAL INVESTORS WHO INDIVIDUALLY HAD SUED OPPENHEIMERPALMIERI FUND LP AND ENTERTAINMENT MARKETING INC OWNED BY ELIAS ZINN SETTLED THEIR CASES FOR PAYMENT OF 7 MILLION AND 75 MILLION RESPECTIVELY IN ADDITION CRAZY EDDIE ITSELF SETTLED SUITS IT HAD FILED AGAINST THE DEFENDANTS FOR 4 MILLION HOWARD HAWKINS AN ATTORNEY AT CADWALADER WICKERSHAM & TAFT WHO REPRESENTS THE COMPANY SAID THE MONEY WOULD GO TOWARD SATISFYING CLAIMS OF CRAZY EDDIE CREDITORS THE SUITS BY MR ZINN AND OPPENHEIMERPALMIERI INVOLVED CLAIMS AGAINST THE DEFENDANTS THAT WEREN'T ASSERTED IN THE CLASSACTION SUITS ACCORDING TO MR HAWKINS ATTORNEYS FOR THE PLAINTIFFS SAID THE AMOUNT PAID TO THE 42 MILLION MAXIMUM DEPENDS ON HOW MANY CLAIMS ARE FILED THEY COULDN'T SPECIFY WHO WOULD BE PAYING WHAT TOWARD THE TOTAL SETTLEMENT AMOUNT INVESTORS IN THE COMPANY MAY HAVE MORE TO COLLECT IN THE FUTURE MAX FOLKENFLIK THE ATTORNEY FOR MR ZINN SAID THAT FEDERAL AUTHORITIES HAVE MORE THAN 60 MILLION IN ASSETS FROZEN IN VARIOUS FOREIGN JURISDICTIONS THAT ARE TIED TO MR ANTAR SO HE SEES AN OPPORTUNITY FOR CONSIDERABLY MORE RECOVERY FOR PLAINTIFFS BEYOND YESTERDAY'S SETTLEMENT THE SETTLEMENT MUST BE APPROVED BY US DISTRICT JUDGE EUGENE NICKERSON IN BROOKLYN NY WHO IS PRESIDING OVER THE CASE ENTERTAINMENT MARKETING INC NOW KLH COMPUTERS INC IS NOT OWNED BY ELIAS ZINN WHO WAS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY UNTIL MID1992 HE ALSO HELD A 245 STAKE IN THE COMPANY WHEN IT FILED FOR BANKRUPTCY COURT PROTECTION EARLIER IN 1992 HE WILL RECEIVE 950000 AFTER CERTAIN LEGAL EXPENSES OF AN AGREED 75 MILLION SETTLEMENT BETWEEN ENTERTAINMENT MARKETING AND SEVERAL PARTIES IN CONNECTION WITH THE FINANCIAL COLLAPSE OF CRAZY EDDIE INC WITH THE REST GOING TO THE TRUSTEE FOR ENTERTAINMENT MARKETING A MARCH 30 ARTICLE INCORRECTLY STATED THAT MR ZINN WAS THE OWNER OF ENTERTAINMENT MARKETING AND THUS IMPLIED HE WOULD RECEIVE THE FULL 75 MILLION 9304060165 930406 ONTARIO SELLS REST OF STAKE IN SUNCOR FOR 1503 MILLION TORONTO THE ONTARIO GOVERNMENT SOLD ITS REMAINING 14 INTEREST IN SUNCOR INC A TORONTOBASED OIL AND GAS CONCERN TO TWO CANADIAN INVESTMENT DEALERS FOR TOTAL PROCEEDS OF ABOUT 190 MILLION CANADIAN DOLLARS US1503 MILLION INVESTMENTINDUSTRY SOURCES SAID THAT THE TWO BLOCKS OF 38 MILLION SHARES EACH WERE ALMOST IMMEDIATELY RESOLD TO INSTITUTIONAL AND RETAIL CLIENTS AT THE SAME PRICE OF C2525 A SHARE THE MOVE COMES A YEAR AFTER THE PROVINCIAL GOVERNMENT AND SUNCOR'S OTHER MAJOR SHAREHOLDER SUN CO OF RADNOR PA FAILED TO WHIP UP ENOUGH INTEREST IN THE COMPANY'S INITIAL PUBLIC OFFERING TO SELL 45 OF THE COMPANY TO THE PUBLIC AT C25 A SHARE INSTEAD THE OFFERING WAS SCALED BACK WITH ONLY 18 OF THE SHARES BEING SOLD AT C19 A SHARE SINCE THEN HOWEVER INVESTOR INTEREST IN OIL AND GAS COMPANIES HAS GROWN AND SUNCOR HAS DEALT WITH SOME OF THE ISSUES THAT DAMPED ENTHUSIASM FOR THE STOCK FOR EXAMPLE THE COMPANY HAS EMBARKED ON A RESTRUCTURING OF ITS OILSANDS OPERATIONS CUTTING COSTS ADOPTING NEW TECHNOLOGY AND ACQUIRING NEW SOURCES OF THE THICK STICKY BITUMEN SUFFICIENT TO KEEP THE OILSANDS PLANT OPERATING FOR ANOTHER 50 YEARS FRED KETCHEN VICE PRESIDENT OF EQUITY TRADING FOR SCOTIAMCLEOD INC ONE OF THE TWO BROKERAGE HOUSES INVOLVED IN THE TRANSACTION SAID THE SUNCOR SHARES FOUND A READY MARKET HE ADDED A YEAR AGO THERE CERTAINLY WASN'T THE INTEREST IN THE OIL AND GAS STOCKS THAT THERE IS NOW THE OTHER INVESTMENT DEALER INVOLVED IN THE SALE OF THE SUNCOR SHARE IS TORONTOBASED RBC DOMINION SECURITIES INC THE TRANSACTION LEAVES SUN AS SUNCOR'S ONLY LARGE REMAINING SHAREHOLDER WITH A 68 INTEREST IN THE COMPANY AT THE TIME OF THE INITIAL OFFERING IN MARCH 1992 SUN HAD INDICATED ITS WILLINGNESS TO REDUCE ITS HOLDINGS TO 55 BUT HASN'T DISCLOSED ANY PLANS TO DO SO IN THE NEAR FUTURE SUNCOR OWNS OIL AND GAS PRODUCTION AND CRUDE OIL REFINING AND MARKETING OPERATIONS INCLUDING THE OILSANDS PLANT IN FORT MCMURRAY ALBERTA AND A STRING OF GAS STATIONS IN EASTERN CANADA 9304060164 930406 GREAT EXPECTATIONS THE STORK IS A GUEST AT MORE WEDDINGS MIXING MATERNITY MATRIMONY SOME BRIDES ARE FINDING TRIP DOWN AISLE IS BUMPY BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL JODI STRAUSS HAD EVERY RIGHT TO EXPECT A PERFECT WEDDING PLANNED A YEAR IN ADVANCE IT HAD A GUEST LIST OF 250 WAS SET AMID THE WHITE COLUMNS OF A HISTORIC GREENWICH VILLAGE HALL AND HAD FLOWERS ARRANGED AND FOOD PREPARED BY THE CREAM OF MANHATTAN'S WEDDING PROFESSIONALS THE BILL WAS IN THE HIGH FIVE FIGURES BUT WHEN THE DAY ARRIVED THE BRIDE FELT A SEARING HEARTBURN WITH EVERY SIP OF WINE HER LOWCUT WHITE GOWN SEEMED TOO TIGHT HER HAIR FELT TOO THICK AND HER FACE NEEDED AN EXTRA LAYER OR TWO OF MAKEUP I HAD A GLOW BUT NOT A PRETTY ONE SHE SAYS NOW A YEAR LATER I FELT GREASY MS STRAUSS'S FEELINGS AREN'T REALLY SURPRISING SOME PREGNANT WOMEN DO FEEL A BIT UNATTRACTIVE HER APPRAISAL OF HER WEDDING DAY WHICH HAD BEEN EAGERLY ANTICIPATED SINCE GRADE SCHOOL IT WAS A DISAPPOINTMENT REALLY WHEN UNRULY RELATIVES TRIED TO HOIST THE COUPLE IN THEIR CHAIRS DURING THE TRADITIONAL ISRAELI HORA DANCE MS STRAUSS WHO WAS TWO MONTHS PREGNANT FOUND HERSELF RUNNING FOR HER BABY'S LIFE LIVING TOGETHER BEFORE MARRIAGE MAY BE COMMON BUT PREGNANT BRIDES CAN STILL FEEL A LITTLE LIKE HESTER PRYNNE IN THE SCARLET LETTER FOR BETTER OR WORSE THEY ARE FINDING THAT A WEDDING IS LADEN WITH CENTURIES OF TRADITIONS THAT LEAVE NO ROOM FOR PREGNANT BRIDES EVEN THE MOST ENLIGHTENED AND PROGRESSIVE WOMEN FIND THEMSELVES WHEN IT COMES TO MATRIMONY INSISTING ON VIRGINAL WHITE GOWNS AND SOME THINGS OLD NEW BORROWED AND BLUE THE MOST REBELLIOUS AMONG US COME TO HEEL AROUND THE TIME OF A WEDDING SAYS ROSEMARY CAINE A NORTHAMPTON MASS SEAMSTRESS WHO MAKES WEDDING GOWNS INCLUDING MANY FOR PREGNANT WOMEN WHO FEEL UNWELCOME AT MAINSTREAM BOUTIQUES OF COURSE SOCIETY'S RULES HAVE LOOSENED SINCE THE 1950S WHEN A COUSIN OF MS STRAUSS'S MOTHER GAVE BIRTH SIX MONTHS AFTER HER WEDDING IT JUST ABOUT KILLED HER MOTHER ACTUALLY GAVE HER A HEART ATTACK SAYS BERNICE STRAUSS MS STRAUSS'S MOTHER AND MY DIDN'T THE RELATIVES TALK STILL AFTER FINDING SHE WAS PREGNANT A MONTH BEFORE THE WEDDING MS STRAUSS FELT TRANSPORTED 40 YEARS BACK IN TIME WITH HER LITTLE SECRET SHE CONFIDED IN HER MOTHER AND A FEW CLOSE FRIENDS BUT HER FATHER AND FUTURE INLAWS WERE LEFT OUT OF THE LOOP THE COUPLE HELD THEIR BREATH DURING TOASTS AFRAID THAT A CONFIDANT MIGHT LET THE SECRET SLIP SO HOW DOES A PREGNANT BRIDE GET MARRIED IN GOOD TASTE JUDITH MARTIN WHO WRITES A SYNDICATED COLUMN UNDER THE PEN NAME MISS MANNERS REBUTS THE NOTION THAT A WHITE GOWN IS A POOR FIT CALLING IT A VULGAR IDEA THAT THE COLOR OF THE DRESS HAS TO ABIDE BY SOME SORT OF TRUTHINPACKAGING LAW AT THE SAME TIME SHE WARNS COUPLES TO BEWARE OF THE SNICKER EFFECT AND THE RISK OF OFFENDING LOVED ONES ASK RICHARD TOMLISON A DALLAS LOAN OFFICER WHOSE WIFE JENNIFER WAS FOUR MONTHS PREGNANT WHEN THEY MARRIED 18 MONTHS AGO WHEN THE MINISTER ASKED GUESTS' WISHES FOR A FRUITFUL MARRIAGE ONE GUY EVEN YELLED OUT FATHER THEY'VE GOT ONE ON THE WAY' MR TOMLISON RECALLS UNTIL THEN THE MINISTER AND THE COUPLE'S GRANDPARENTS KNEW NOTHING OF THE PREGNANCY WE HAD SOME PATCHING UP TO DO HE SAYS NO ONE KEEPS FIGURES BUT SIGNS ARE THAT THIS BLENDING OF MATERNITY AND MATRIMONY IS ON THE RISE SOMETIMES THIS PLACE LOOKS LIKE A MATERNITY SHOP SAYS CATHLEEN SWEENEY OWNER OF MOONLIGHTING A WEDDING AND FORMAL WEAR BOUTIQUE IN CONCORD CALIF RENEE GRANNIS UNTIL RECENTLY A WEDDING CONSULTANT IN RESTON VA SAYS PREGNANT BRIDES WERE 25 OF HER CLIENTELE AND SHE ROUTINELY SOLD BABY ANNOUNCEMENTS WITH THE WEDDING INVITATIONS STILL PREGNANT BRIDES SHOULDN'T EXPECT WIDESPREAD ACCEPTANCE ESPECIALLY FROM THE CLERGY THE KENDIGS OF SYRACUSE NY WERE MARRIED IN A CATHOLIC CEREMONY BUT NOT IN HER FAMILY'S CHURCH THE PRIEST THERE WAS KNOWN FOR ORDERING PREGNANT BRIDES NOT TO WEAR WHITE MARY BETH KENDIG DREADED BREAKING THE NEWS TO HER HUSBAND'S FATHER A PRESBYTERIAN MINISTER HER INLAWS SHE SAYS DIDN'T ASK ABOUT THE BABY UNTIL AFTER THE WEDDING GIVEN ALL THIS DISCOMFORT ONE MIGHT WONDER WHY BRIDES DON'T JUST PUT THE WHOLE THING OFF FOR ONE REASON WEDDING PLANS HAVE THEIR OWN MOMENTUM POSTPONEMENT WAS MY GREATEST FEAR EXPLAINS BERNICE STRAUSS THE BRIDE'S MOTHER WE'D PUT DOWN DEPOSITS WE'D SENT OUT THE INVITATIONS THEN THERE IS ALSO THE DELICATE MATTER OF THE CHILD'S LEGITIMACY GIVEN THE ALTERNATIVE SAYS MISS MANNERS A WEDDING IS VERY APPROPRIATE FOR THE PREGNANT BRIDE AS FOR THE COTERIE OF BRIDAL CONSULTANTS AND PHOTOGRAPHERS SOME MAY VIEW A PREGNANT BRIDE LESS AS A MARKET THAN A HEADACHE THERE'S A BETTERTHANEVEN CHANCE THAT THEY'LL HATE THE PICTURES SAYS RICHARD ALVERYS A CHICAGO PHOTOGRAPHER SOMETIMES I WANT TO GRAB THEM AND SAY LOOK LADY YOU'RE GOING TO HAVE A BABY AND YOU'RE NOT DEMI MOORE' WHO APPEARED NAKED AND ENORMOUSLY PREGNANT ON THE COVER OF VANITY FAIR MAGAZINE IN 1991 AS FOR HER WEDDING IT WAS PERFECT INCLUDING THE TOASTS FOR THE BABY THE ONLY PROBLEM WAS THE HONEYMOON FIVE MONTHS PREGNANT SHE HAD TO CHANGE DESTINATIONS TO NEW ENGLAND FROM BRAZIL BECAUSE SHE COULDN'T TAKE ANTIMALARIAL DRUGS WE LOST 1000 ON THE TICKETS SHE SAYS THERE ARE THOSE HOWEVER DISPLAYING A LITTLE EXTRA SENSITIVITY THE DISCREET KLEINFELD & SON A NEW YORK CITY BRIDAL CHAIN THAT SELLS 8000 GOWNS A YEAR MAKES ONLY A BRIEF NOTE ON THE BRIDE'S RECORD BRIDE WILL BE LARGER UPON RETURN TERRY GRUBER A NEW YORK PHOTOGRAPHER SAYS PREGNANT WOMEN HAVE A SPECIAL BEAUTY ALTHOUGH HIS DESCRIPTION OF HIS TECHNIQUES MIGHT SPARK A BRIDE'S WORST FEARS I'D GET A SIDE VIEW TO MAKE IT OBVIOUS BECAUSE I THINK THE KID WOULD GET A KICK OUT OF SEEING IT YEARS LATER FAILING THAT I'LL FOCUS ON THE FACE UNLESS SHE'S TOO CHUBBY OR OVEREXPOSE TO KEEP THE EXTRA FOLDS OF FABRIC FROM SHOWING HE EXPLAINS THEY'RE THE SAME THINGS I'D DO IF SHE WERE JUST FAT MEANWHILE MS CAINE THE DRESSMAKER BECAME KNOWN AS A FRIEND OF THE PREGNANT BRIDE FOUR YEARS AGO WHEN SHE FOUND HERSELF AT AGE 44 PREGNANT BY THE MAN SHE LATER MARRIED ALBEIT AFTER THE CHILD'S BIRTH BORN AND RAISED IN A SMALL IRISH TOWN WHERE PREMARITAL PREGNANCY WAS SCANDALOUS SHE NONETHELESS SPECIALIZES IN GOWNS THAT HELP BRIDES LOOK ALMOST EXTRAVAGANTLY TRADITIONAL USING ANTIQUE LACE FOR A VICTORIAN LOOK TO HELP THE DRESS GROW WITH THE BRIDE SHE SEWS IN TRIANGULAR PIECES OF FABRIC CALLED GODETS UNDER THE ARMHOLES SHE ALSO ALWAYS KEEPS PLENTY OF JUICE AROUND FOR HER PREGNANT CUSTOMERS AND HAS A PLACE FOR THE BRIDE TO LIE DOWN IT IS NOT A MAJOR ADJUSTMENT SHE SAYS AND BARELY A TEST OF HER SKILLS BUT LIKE MANY WOMEN SHE MUSES REGRETFULLY THAT MEN CAN'T GET PREGNANT TOO MAKING A TUXEDO FOR A PREGNANCY NOW THAT WOULD BE A CHALLENGE 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 9304060163 930406 WHAT'S NEWS BUSINESS AND FINANCE TIME WARNER AND TELECOMMUNICATIONS ARE DISCUSSING A PLAN TO DIVIDE BETWEEN THEM THE MAIN ASSETS OF TURNER BROADCASTING IN WHICH THE MEDIA GIANTS HOLD BIG STAKES PEOPLE CLOSE TO THE TALKS SAID SUCH A MOVE COULD GIVE CHAIRMAN TED TURNER A WINDFALL WHILE EFFECTIVELY BREAKING UP HIS ENTERTAINMENT AND NEWS EMPIRE THE WHITE HOUSE INDICATED IT WILL TRY TO WIN PASSAGE OF A SCALEDBACK VERSION OF CLINTON'S 16 BILLIONPLUS ECONOMICSTIMULUS PACKAGE IN THE FACE OF A SENATE GOP FILIBUSTER MONEY FOR SUCH THINGS AS STUDENT AID AND COMMUNITY DEVELOPMENT MAY BE DROPPED GENERAL MOTORS ASSIGNED ITS CHIEF FINANCIAL OFFICER G RICHARD WAGONER TO TAKE CHARGE OF THE CAR MAKER'S CAMPAIGN TO SLASH PURCHASING COSTS HE IS EXPECTED TO CONTINUE THE STRATEGY OF FORMER PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA BY SEARCHING WORLDWIDE FOR THE LOWESTCOST PARTS RJR IS CONSIDERING CHANGING OR DELAYING ITS 15 BILLION OFFERING OF STOCK LINKED TO ITS FOOD UNIT PEOPLE ON WALL STREET SAID THE RETHINKING FOLLOWS A SHARP DROP IN RJR'S STOCK PRICE AMID CONCERNS ABOUT TOBACCO PRICE CUTTING BRANDNAME COMPANIES' STOCKS TUMBLED ON CONCERNS THAT AN EROSION OF BUYER LOYALTY WILL SPREAD FROM TOBACCO TO FOOD AND OTHER CONSUMER GOODS CAMPBELL SOUP DOLE HEINZ P&G AND COLGATE ALL POSTED SHARP DECLINES SALES OF USBUILT CARS AND LIGHT TRUCKS REBOUNDED IN LATE MARCH DESPITE A REPORTED DECLINE IN CONSUMER CONFIDENCE THE DATA COULD ADD TO CONFUSION OVER THE ECONOMY'S HEALTH MERCEDESBENZ PLANS TO BUILD A SPORTUTILITY VEHICLE PRICED AT 20000 TO 30000 AT A NEW US FACTORY UNDERSCORING THE COMPANY'S SHIFT AWAY FROM MORE EXPENSIVE MODELS THE PLANT'S SITE HASN'T BEEN CHOSEN STOCK AND BOND PRICES STABILIZED AFTER FRIDAY'S SHARP DECLINES THE DOLLAR FELL TOUCHING ANOTHER RECORD LOW AGAINST THE YEN THE DOW JONES INDUSTRIALS CLIMBED 838 POINTS TO 337919 LESLIE FAY COS SOUGHT CHAPTER 11 PROTECTION CITING RESTRICTIONS ON ITS BORROWING IN THE WAKE OF AN INTERNAL ACCOUNTING SCANDAL AT THE DRESSMAKER ITS STOCK PLUNGED 225 OR 43 TO 3 F&C INTERNATIONAL'S STOCK PLUNGED 225 OR 50 TO 225 AFTER THE FLAVOR AND FRAGRANCE COMPANY FIRED ITS CHAIRMAN FOR ALLEGEDLY MANIPULATING RESULTS TO INFLATE PROFIT AND HIS PAY F&C SUED THE EXOFFICIAL YESTERDAY ITALIAN APPAREL MAKER GRUPPO GFT AGREED TO SELL A SIGNIFICANT STAKE TO TEXTILE GIANT GRUPPO MIROGLIO AMID FADING INTEREST IN THE DESIGNERLABEL CLOTHES IN WHICH GFT SPECIALIZED PETROLEOS MEXICANOS IS PREPARING PAPERWORK FOR THE SEC THAT WOULD LET THE MEXICAN STATE OIL COMPANY SELL DOLLARDENOMINATED BONDS IN THE US THREE BIG US TIRE MAKERS PLAN TO RAISE PRICES AT LEAST 3 ON REPLACEMENT TIRES CITING HIGHER RAWMATERIAL AND LABOR COSTS BUT ANALYSTS DON'T EXPECT THE FULL INCREASES TO STICK MIDSIZE COMPANIES PLAN TO HIRE MORE EMPLOYEES AND INCREASE CAPITAL SPENDING THIS YEAR BUT THEIR TOP FINANCIAL OFFICERS ARE DOWNBEAT ABOUT THE PROSPECTS FOR THE OVERALL ECONOMY BONDS LEHMAN BROTHERS TREASURY INDEX 496722 UP 1865 COMMODITIES OIL 2062 A BARREL OFF THREE CENTS DOW JONES FUTURES INDEX 12738 UP 024 SPOT INDEX 12379 OFF 078 DOLLAR 11370 YEN OFF 005 15948 MARKS OFF 00027 9304060162 930406 WHO'S NEWS HAWTHORNE FINANCIAL CORP HAWTHORNE FINANCIAL CORP HAWTHORNE CALIF VERNON D HERBST RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S HAWTHORNE SAVINGS & LOAN ASSOCIATION UNIT THE COMPANY SAID MR HERBST 69 YEARS OLD WILL RETIRE AS CHAIRMAN OF HAWTHORNE SAVINGS LATER THIS YEAR 9304060161 930406 WHO'S NEWS AMERICAN SCIENCE & ENGINEERING INC AMERICAN SCIENCE & ENGINEERING INC CAMBRIDGE MASS THE COMPANY SAID ITS CHAIRMAN MARTIN ANNIS WAS NAMED TO THE NEW POSITION OF CHIEF EXECUTIVE OFFICER MR ANNIS WHO CONTINUES AS CHAIRMAN HAD SERVED AS PRESIDENT OF THE THE RESEARCH AND ENGINEERING SERVICES CONCERN SINCE HE FOUNDED IT RICHARD F SULLIVAN JR WAS NAMED PRESIDENT AS WELL AS TO THE NEW POST OF CHIEF OPERATING OFFICER MR SULLIVAN WAS ALSO NAMED A DIRECTOR BOOSTING THE BOARD'S SIZE TO SEVEN HE WAS PREVIOUSLY VICE PRESIDENT FINANCE AND TREASURER 9304060160 930406 WHO'S NEWS DEAN WITTER DISCOVER & CO DEAN WITTER DISCOVER & CO NEW YORK ROBERT M GARDINER 70 YEARS OLD WAS ELECTED TO THE BOARD OF THE SECURITIES AND FINANCIAL SERVICES COMPANY INCREASING THE BOARD'S MEMBERSHIP TO SEVEN A FORMER DEAN WITTER CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE CURRENTLY IS A CONSULTANT TO THE FIRM DEAN WITTER WHICH IS MAJORITYOWNED BY SEARS ROEBUCK & CO RECENTLY HAD AN INITIAL PUBLIC OFFERING 9304060159 930406 WHO'S NEWS GREYHOUND LINES INC GREYHOUND LINES INC DALLAS PHILLIP W TAFF FORMER SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CLOSELY HELD AMERICAN TRADING & PRODUCTION CORP WAS NAMED EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER AND CHIEF ADMINISTRATIVE OFFICER OF THIS BUS COMPANY MR TAFF 51 YEARS OLD SUCCEEDS J MICHAEL DOYLE WHO WAS PROMOTED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENTOPERATION ON MARCH 25 9304060158 930406 WHO'S NEWS ADVO INC ADVO INC WINDSOR CONN RICK KURZ 52 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF MARKETING OFFICER OF THIS DIRECTMAIL PROCESSING FIRM EFFECTIVE APRIL 19 HE HAD BEEN MANAGING PARTNER OF THE MANAGEMENT CONSULTING GROUP AT MARKETING CORP OF AMERICA 9304060157 930406 WEEKLY STEEL OUTPUT DECLINES 12 IN US WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 12 LAST WEEK TO 1790000 TONS FROM 1812000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT FELL 2 FROM THE 1826000 TONS PRODUCED A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK AGO 9304060156 930406 MARKETING & MEDIA EW SCRIPPS BOARD GIVES CHIEF BIG BONUS DESPITE STRIKE'S TOLL CINCINNATI THE EW SCRIPPS CO BOARD EXCLUDED THE NEGATIVE FINANCIAL IMPACT OF A LONG STRIKE AT THE PITTSBURGH PRESS WHEN CONSIDERING LARGE BONUSES TO ITS TOP EXECUTIVE ACCORDING TO THE PROXY STATEMENT THE COMPENSATION COMMITTEE DECIDED THAT THE COMPANY'S MANAGEMENT TEAM SHOULD NOT BE PENALIZED FOR THE BOARD'S DECISION TO TAKE A NECESSARILY FIRM STAND IN THE LABOR NEGOTIATIONS WITH THE UNIONS AT THE PITTSBURGH PRESS THE FIVEMONTH STRIKE AT THE PRESS SINCE SOLD TO CLOSELY HELD BLADE COMMUNICATIONS INC TOLEDO OHIO CAUSED A 48 DECLINE IN SCRIPPS' 1992 THIRDQUARTER EARNINGS FOR 1992 THE MEDIA COMPANY POSTED NET INCOME OF 1063 MILLION OR 143 A SHARE INCLUDING A 419 MILLION GAIN FROM THE SALE OF THE PRESS AND BEFORE AN ACCOUNTING CHANGE ON REVENUE OF 126 BILLION IN 1991 NET WAS 666 MILLION OR 89 CENTS A SHARE INCLUDING A 63 MILLION CHARGE RELATED TO SETTLEMENT OF LITIGATION ON REVENUE OF 13 BILLION THE BOARD GRANTED LAWRENCE A LESER 57 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER A 369000 BONUS OR 60 OF HIS 1992 BASE SALARY OF 615000 EVEN THOUGH THE COMPANY DIDN'T MEET THE TARGETED OPERATING CASH FLOW A BASIS FOR AWARDING BONUSES THE PROXY SAYS THE BOARD ALSO INCREASED MR LESER'S ANNUAL SALARY 24 TO 630000 EFFECTIVE JAN 1 HIS FIRST RAISE SINCE JAN 1 1991 IN THE PROXY THE BOARD CITED HIS ROLE IN ARDUOUS LABOR NEGOTIATIONS AT THE PRESS IN ARRANGING THE PAPER'S SALE AND OTHER INTERNAL MANAGEMENT CHANGES WHICH CONSUMED HIS TIME 9304060155 930406 TECHNOLOGY & SCIENCE IN THE LAB BENDING EARS TO BUST SONIC BOOMS BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL HAMPTON VA SITTING INSIDE A FOAMLINED CINDERBLOCK BOX THE SIZE OF A TODDLER'S PLAYHOUSE A LOCAL WOMAN IS LENDING HER EARS TO SCIENCE IN AN EFFORT TO BUILD THE AIRLINER OF THE FUTURE ON CUE EIGHT SPEAKERS ARE ZAPPED WITH AN ELECTRICAL CHARGE THAT FLOODS THE LITTLE SPACE WITH A LOUD BOOMBOOM IT'S A SONIC BOOM OR A LABCREATED VERSION OF ONE AS JARRING AS A SNAP OF SUMMER THUNDER WITHOUT THE RUMBLE WHAT RESEARCHERS WANT TO LEARN FROM CAROL WILSON AND OTHER VOLUNTEERS WHO STEP INTO THE BOOM BOX AT NASA'S LANGLEY RESEARCH CENTER IS THIS CAN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION DESIGN A SONIC BOOM THAT PEOPLE CAN LIVE WITH THE SEARCH FOR AN EASYLISTENING SONIC BOOM IS A KEY PART OF EARLY US RESEARCH EFFORTS TO DESIGN A NEW AIRLINER TO FLY TWICE AS FAST AS SOUND THE US DROPPED THEIR OWN PLANS IN 1971 AND LET THE EUROPEANS BUILD TODAY'S SUPERSONIC TRANSPORT PLANE THE CONCORDE WHICH LEAVES A CONTINUOUS TRAIL OF SONIC BOOMS THAT RESTRICTS IT TO FLYING OVER WATER NOW THE US IS TRYING TO DEVISE TECHNOLOGY THAT COULD ONE DAY REPLACE THE CONCORDE WITH AN AIRLINER THAT FLIES FASTER FARTHER AND CHEAPER AND PERHAPS AS A BONUS WITH A SOFTER SONIC BOOM THAT COULD EVEN OPEN UP OVERLAND ROUTES OVER UNPOPULATED AREAS THE TASK ISN'T SIMPLE RESEARCHERS HAVE DEVISED HOW TO MAKE A MORE ACCEPTABLE SONIC BOOM BY CHANGING THE SHAPE OF AN AIRCRAFT BUT SO FAR DESIGNS CONFIGURED FOR QUIETER BOOMS CAN'T FLY ECONOMICALLY IF US RESEARCHERS CAN SOLVE THE SONIC BOOM PROBLEM THOUGH ALONG WITH OTHER ENVIRONMENTAL AND ECONOMIC CONCERNS THE PAYOFF COULD BE SIGNIFICANT STUDIES DONE FOR NASA SHOW THAT A USMADE SUPERSONIC AIRLINER WOULD TRANSLATE TO 140000 NEW JOBS AND 200 BILLION IN SALES THE GOAL AT NASA IS TO ENABLE US AIRCRAFT MAKERS TO BUILD A PLANE THAT CAN FLY FROM LOS ANGELES TO TOKYO IN FOUR HOURS INSTEAD OF 10 HOURS TODAY AND AT ECONOMYCLASS OR BUSINESSCLASS FARES BY ABOUT 2015 NASA'S PLANNERS ENVISION A FLEET OF UP TO 1200 AIRLINERS WHISKING AROUND THE GLOBE AT MACH 24 OR 24 TIMES AS FAST AS SOUND AT NASA LABS HERE ON THE CHESAPEAKE BAY NOBODY IS FLYING ANYWHERE YET BUT THE PRESSURE IS ON NASA RESEARCHERS WORKING WITH BOEING AND MCDONNELL DOUGLAS ENGINEERS UNDER GOVERNMENT CONTRACTS HAVE THREE MORE YEARS TO REFINE THEIR LOWBOOM DESIGNS THROUGH ACOUSTICS EXPERIMENTS AND WINDTUNNEL TESTS THEN IN 1996 NASA OFFICIALS WITH INPUT FROM BOEING AND MCDONNELL DOUGLAS WILL DECIDE WHETHER TO CONTINUE OR TO ABANDON RESEARCH INTO SHAPING PLANES TO CONTROL SONIC BOOMS IN THE BOOM BOX MRS WILSON AND 31 OTHERS ANSWERING A NEWSPAPER AD ARE BEING PAID 30 FOR THE AFTERNOON TO JUDGE HOW ANNOYING DIFFERENT SONIC BOOMS ARE COMPARED TO OTHER AIRCRAFT NOISE I WAS STARTLED SEVERAL TIMES IN THERE IT WAS SO LOUD REPORTS MRS WILSON AFTER FIVE MINUTES OF COMPARING RECORDINGS OF JET TAKEOFFS AND LANDINGS WITH DIFFERENT SONIC BOOMS AND MARKING DOWN WHICH WERE MOST DISTURBING IF ALL THIS SEEMS AS SUBJECTIVE AS THOSE BLIND TASTE TESTS BETWEEN COKE AND PEPSI IT'S BECAUSE IT IS THE VERY FOUNDATION OF THIS IS SUBJECTIVE DEFENDS KEVIN SHEPHERD A BEARDED 43YEAROLD ACOUSTICS EXPERT WHO OVERSEES THE BOOMBOX EXPERIMENTS THE ONLY REASON ANYONE CARES ABOUT HELICOPTER NOISE FOR EXAMPLE ISN'T BECAUSE IT KNOCKS DOWN TREES OR ANYTHING IT'S SIMPLY BECAUSE PEOPLE DON'T LIKE IT WHAT HAS SURPRISED DR SHEPHERD IS THAT AS SUBJECTIVE AS THE TESTS ARE PEOPLE HAVE BEEN IN SURPRISING AGREEMENT ABOUT WHICH BOOMS THEY DISLIKE THE MOST THEIR ANSWERS HAVE YIELDED A WAY TO MEASURE HUMAN RESPONSE TO SONIC BOOMS WHAT THE HUMAN EAR HEARS IN A SONIC BOOM ACTUALLY IS A RAPID CHANGE IN AIR PRESSURE A SHOCK WAVE AS AIR MOLECULES HAVE TROUBLE GETTING OUT OF THE WAY OF A PLANE FLYING FASTER THAN SOUND THE RATE OF PRESSURE CHANGE IS AFFECTED BY THE SHAPE OF THE PLANE AND CAN BE CHARTED ON GRAPHS THAT SHOW HOW ONE BOOM'S SIGNATURE IS DIFFERENT FROM OTHERS USUALLY A SONIC BOOM IS REALLY TWO BOOMS IN RAPID SUCCESSION THE FIRST CAUSED BY THE PLANE'S NOSE CREATING OVERPRESSURE AND THE SECOND BY THE TAIL AS AIR MOLECULES RUSH BACK SCIENTISTS PREVIOUSLY HAD THOUGHT THAT BOOMS WITH THE GREATEST PRESSURE CHANGES WERE THE WORST BUT WHAT ORDINARY PEOPLE FOUND WAS THAT THE ABRUPTNESS OF THE PRESSURE CHANGES IS MORE IMPORTANT THE MORE GRADUAL THE PRESSURE CHANGE THE EASIER ON THE EAR TURNED OVER TO AERONAUTICAL ENGINEERS WHO ARE TRYING TO ACCOMMODATE AT LEAST 250 PASSENGERS THOSE RESULTS HAVE HELPED TO DEFINE DISTINCTIVE LOWBOOM FEATURES THAT MIGHT BE BUILT INTO TOMORROW'S AIRLINER A SLENDER ELONGATED BODY AS LONG AS A FOOTBALL FIELD SWEPTBACK TRIANGULAR DELTA WINGS AND A BLUNT NOSE SO FAR THE ONLY LOWBOOM AIRCRAFT BUILT ARE MODELS THAT ARE 300 TIMES SMALLER THAN THE REAL THING AND THAT FLY ONLY IN WIND TUNNELS AFTER MONTHS OF PREPARATION A 26YEAROLD MCDONNELL DOUGLAS ENGINEER JOHN MORGENSTERN IS READY TO TEST HIS FOOTLONG MODEL IN LANGLEY'S SUPERSONIC WIND TUNNEL THE 70000 STAINLESSSTEEL PROTOTYPE IS HELD ON A PROD TWO METAL PROBES WILL MEASURE THE SHOCK WAVES THROWN OFF BY THE MODEL AT WINDS 18 TIMES FASTER THAN SOUND AS THE HUM OF A WAREHOUSE FULL OF MACHINERY CHURNS INTO ACTION WIND RUSHES THROUGH THE TUNNEL GOBBLING UP 1500 OF ELECTRICITY AN HOUR BUT THERE IS LITTLE ACTION TO SEE PEERING THROUGH A GRATE INTO THE WIND TUNNEL ALL THE ENGINEERS ARE HUDDLING IN THE NEXT ROOM WATCHING DOTS APPEAR ON A COMPUTER SCREEN SIMULATING THE SONICBOOM SIGNATURE BUT THE DOTS AREN'T WHAT MR MORGENSTERN HAD EXPECTED JOHN IS CONCERNED SAYS CHRISTINE DARDEN 50 AN AEROSPACE ENGINEER WHO PLANS NASA'S SONICBOOM RESEARCH HE EXPECTED A LARGER SHOCK NEAR THE PLANE SHE SAYS THE NOSE FIXED WITH A TIP LIKE AN ARROWHEAD WITH A BROKEN POINT IS SUPPOSED TO PRODUCE A SHARP JAGGED PRESSURE JUMP THAT SHOULD DISSIPATE AS IT DESCENDS TO EARTH INTO A SHAPE EASIER ON THE EARS THE SHOCK WAVES THROWN OFF BY THE ENGINE HOUSINGS ARE PROBLEMATIC TOO THE DEVILISH DILEMMA OF DESIGNING AN AIRCRAFT WITH A PERFECT SONIC BOOM IS THAT FOR ECONOMIC REASONS IT MUST FLY ALMOST AS EFFICIENTLY AS PLANES DESIGNED WITH NO THOUGHT TO SONIC BOOMS OUR LOWBOOM PLANES DO TEND TO BE HEAVIER CONCEDES DR DARDEN HURTING THE PLANE'S FUEL ECONOMY AND PERFORMANCE AFTER FLYING THE CONCORDE FOR 17 YEARS THE FRENCH AND BRITISH AREN'T FOCUSING ON SONIC BOOMS IN THEIR RESEARCH INTO A NEXTGENERATION PLANE DEVELOPERS OF THE CONCORDE ASSUME SUPERSONIC PLANES WILL ALWAYS BE RESTRICTED TO FLYING OVER WATER EVEN NASA OFFICIALS IN CHARGE OF THIS 3 MILLIONAYEAR RESEARCH EFFORT ARE SKEPTICAL THAT POPULATED REGIONS WOULD EVER ACCEPT EVEN SOFTER SONIC BOOMS BUT SAY IT'S STILL WORTH TRYING TO REDUCE DISTURBANCES TO HUMANS AND WILDLIFE EVEN IF THE PLANES FLY ONLY OVER THE SEA 9304060154 930406 WHO'S NEWS HOFFMAN HOUSEHOLD INTERNATIONAL INC'S PRESIDENT DIES AT 50 PROSPECT HEIGHTS ILL HOUSEHOLD INTERNATIONAL INC SAID EDWIN P HOFFMAN ITS 50YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER DIED SUDDENLY SATURDAY MORNING AT HIS HOME IN LAKE FOREST ILL OF NATURAL CAUSES MR HOFFMAN HAD HELD HIS POSITIONS WITH HOUSEHOLD SINCE HE JOINED THE COMPANY IN JANUARY 1988 HE WAS ALSO A MEMBER OF THE COMPANY'S BOARD EARLIER THIS YEAR HOUSEHOLD ANNOUNCED PLANS TO PROMOTE MR HOFFMAN TO CHIEF EXECUTIVE OFFICER IN MAY SUCCEEDING DONALD C CLARK WHO WOULD REMAIN CHAIRMAN THE FINANCIAL SERVICES COMPANY SAID MR CLARK REQUESTED THE MOVE TO PROVIDE FOR AN ORDERLY CHANGE IN THE TOP EXECUTIVE POST IN ABOUT THREE YEARS MR CLARK WILL TURN 65 THE MANDATORY RETIREMENT AGE FOR THE COMPANY'S CHIEF EXECUTIVE HOUSEHOLD SAID IT HASN'T ANY IMMEDIATE PLANS TO NAME SUCCESSORS 9304060153 930406 WHO'S NEWS CALIFORNIA ENERGY CO REHIRES DAVID SOKOL AS PRESIDENT AND CHIEF OMAHA NEB CALIFORNIA ENERGY CO SAID IT REORGANIZED ITS MANAGEMENT WITH ITS FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER DAVID L SOKOL RETURNING TO THOSE POSTS EFFECTIVE APRIL 19 MR SOKOL 36 YEARS OLD A CALIFORNIA ENERGY DIRECTOR LEFT THE COMPANY IN JANUARY 1992 TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF JWP INC RYE BROOK NY HE LEFT JWP IN OCTOBER AFTER LESS THAN A YEAR IN THE POST MR SOKOL RECENTLY CONFIRMED ALLEGATIONS IN A SHAREHOLDER LAWSUIT AGAINST JWP THAT HE LEFT THE TROUBLED COMPANY AFTER PRESENTING THE BOARD WITH EVIDENCE OF ALLEGED WIDESPREAD ACCOUNTING IMPROPRIETIES CALIFORNIA ENERGY'S CURRENT PRESIDENT AND CHIEF OPERATING OFFICER RICHARD JAROS 41 YEARS OLD WILL BECOME CHAIRMAN A POST NOW HELD BY WALTER SCOTT JR 61 WHO IS ALSO CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF PETER KIEWIT SONS' INC KIEWIT A CLOSELY HELD CONSTRUCTION MINING AND TELECOMMUNICATIONS COMPANY BASED HERE OWNS ABOUT 39 OF CALIFORNIA ENERGY AN INDEPENDENT POWER PRODUCER WITH 1992 REVENUE OF ABOUT 127 MILLION MR SCOTT WILL REMAIN A DIRECTOR MR JAROS SAID THE MANAGEMENT CHANGES WILL ALLOW HIM TO RESUME SOME MANAGEMENT RESPONSIBILITIES AT PETER KIEWIT AFTER A TRANSITION PERIOD OF SEVERAL MONTHS HE SAID CALIFORNIA ENERGY'S REHIRING OF MR SOKOL DRAMATICALLY STRENGTHENS THE COMPANY IN ITS OBJECTIVE OF BECOMING ONE OF THE LEADING INDEPENDENT POWERDEVELOPMENT COMPANIES 9304060152 930406 WHO'S NEWS NEW YORK BANCORP INC NEW YORK BANCORP INC DOUGLASTON NY GERALDINE A FERRARO 57 YEARS OLD WAS ELECTED TO FILL A SEAT ON THIS BANKING COMPANY'S NINEMEMBER BOARD SHE ALSO FILLED A VACANCY ON THE 11MEMBER BOARD OF HOME FEDERAL SAVINGS BANK A UNIT CURRENTLY AN ATTORNEY IN PRIVATE PRACTICE MS FERRARO WAS A CONGRESSWOMAN AND WAS THE DEMOCRATIC VICE PRESIDENTIAL CANDIDATE IN THE 1984 ELECTION 9304060151 930406 ENERGY BUDGET PLAN CUTS ARMS SPENDING PROMOTES NATURAL GAS WASHINGTON THE CLINTON ADMINISTRATION PROPOSED AN ENERGY BUDGET FOR FISCAL 1994 THAT WOULD SIGNIFICANTLY BOOST SPENDING ON NONGASOLINE VEHICLES NATURAL GAS TECHNOLOGY TRANSFER AND CONSERVATION AND EFFICIENCY PROGRAMS FACING SPENDING CUTS WOULD INCLUDE ATOMIC WEAPONS PRODUCTION AND NUCLEAR RESEARCH AND DEVELOPMENT THE ENERGY DEPARTMENT HOWEVER PLANS TO INCREASE FUNDS FOR PROGRAMS TO RETRAIN PEOPLE AFFECTED BY THE DEFENSE CUTBACKS ENVIRONMENTAL RESTORATION SPENDING AT THE NATION'S WEAPONS COMPLEXES WOULD INCREASE AS WELL THE BUDGET WOULD ENCOURAGE THE TRANSFER OF DEFENSERELATED AND CIVILIAN TECHNOLOGY TO THE PRIVATE SECTOR FROM THE DEPARTMENT'S NATIONAL LABORATORIES ENERGY SECRETARY HAZEL O'LEARY TOLD REPORTERS THAT PARTNERSHIPS BETWEEN THE LABS AND THE PRIVATE SECTOR WILL BE AN IMPORTANT PART OF THE LABS' NEW MISSION OVERALL THE DEPARTMENT'S BUDGET WOULD INCREASE 3 TO 196 BILLION AMONG SPECIFIC ACCOUNTS SPENDING ON ENERGY EFFICIENCY AND RENEWABLE ENERGY WOULD RISE 34 TO 109 BILLION FROM 814 MILLLION THE REQUEST INCLUDES A BIG JUMP IN FUNDS FOR CONVERTING THE FEDERAL VEHICLE FLEET TO NATURAL GAS AND OTHER ALTERNATIVE FUELS THE DEPARTMENT IS SEEKING 155 BILLION FOR TECHNOLOGY TRANSFER PROGRAMS UP FROM 923 MILLION IN FISCAL 1993 WHICH ENDS SEPT 30 SPENDING FOR ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT WOULD INCREASE TO 65 BILLION IN FISCAL 1994 UP 1 BILLION FROM THE CURRENT FISCAL YEAR NATIONAL DEFENSE PROGRAMS WOULD FALL TO 47 BILLION FROM 58 BILLION SPENDING ON THE SUPERCONDUCTING SUPERCOLLIDER WOULD RISE TO 640 MILLION FROM 517 MILLION THE SCHEDULE FOR COMPLETING THAT PROJECT WOULD BE EXTENDED BY THREE YEARS TO 2002 9304060149 930405 SAFECARD AGREEMENT WITH FORMER CEO TO TOTAL 10 MILLION CHEYENNE WYO SAFECARD SERVICES INC SAID IT WILL PAY STEVEN J HALMOS ITS COFOUNDER AND FORMER CHIEF EXECUTIVE OFFICER 10 MILLION OVER FIVE YEARS AS PART OF A CONSULTING AND NONCOMPETE AGREEMENT MR HALMOS WHO ABRUPTLY RESIGNED LAST YEAR AFTER A DISPUTE WITH DIRECTORS WILL RECEIVE 750000 A YEAR FOR HIS CONSULTING SERVICES AND 125 MILLION A YEAR FOR AGREEING NOT TO COMPETE AGAINST SAFECARD THE COMPANY WHICH NOTIFIES CREDIT CARD ISSUERS ABOUT LOST OR STOLEN CARDS SAID MR HALMOS ALSO AGREED NOT TO COMPETE AGAINST THE COMPANY FOR TWO ADDITIONAL YEARS WITHOUT COMPENSATION GENE MILLER A SAFECARD DIRECTOR SAID MR HALMOS' EXPERTISE STILL IS USEFUL TO THE COMPANY HE'S VERY KNOWLEDGEABLE ABOUT THE MARKETING HE DEVELOPS A LOT OF THE ADVERTISING COPY HIMSELF AND HE'S VERY MUCH INVOLVED WITH A LOT OF THE MAJOR CLIENTS MR MILLER SAID AS PART OF THE AGREEMENT THE COMPANY ALSO SAID IT AGREED TO PURCHASE MR HALMOS' 16MILLIONSHARE STAKE IN SAFECARD ABOUT 625 OF THE COMPANY'S SHARES OUTSTANDING AT THE STOCK'S AVERAGE PRICE OVER A THREEDAY PERIOD THE COMPANY WOULDN'T SPECIFY THE DATES THE COMPANY SAID THAT IF THE AVERAGE PRICE WAS BELOW 1150 A SHARE MR HALMOS WOULDN'T BE OBLIGATED TO SELL IF IT WAS ABOVE 1350 A SHARE THE COMPANY WOULDN'T BE OBLIGATED TO BUY SAFECARD STOCK CLOSED FRIDAY AT 11625 DOWN 625 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MR MILLER SAID SAFECARD WILL PURCHASE THE SHARES AS PART OF A PREVIOUSLY ANNOUNCED BUYBACK OF FOUR MILLION SHARES THE COMPANY ALREADY HAS BOUGHT 465400 SHARES UNDER THE BUYBACK PROGRAM THE COMPANY ALSO SAID IT WILL RECEIVE THE RIGHT OF FIRST REFUSAL ON FOUR MILLION SHARES FOR WHICH MR HALMOS HOLDS OPTIONS MR HALMOS RESIGNED IN DECEMBER FOUR DAYS AFTER HIS BROTHER PETER THE FORMER CHAIRMAN AND ALSO A COFOUNDER WAS FORCED OUT BY DIRECTORS 9304060148 930406 INTERNATIONAL PEMEX PREPARES TO SELL BONDS IN US MARKET BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MEXICO'S OIL MONOPOLY PETROLEOS MEXICANOS IS IN THE PROCESS OF PREPARING A FULL DISCLOSURE REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION AS AN ACCOUNTING PRECURSOR TO A POSSIBLE PUBLIC OFFERING OF YANKEE BONDS PEMEX OFFICIALS SAID YANKEE BONDS A BURGEONING MARKET ARE DOLLARDENOMINATED SECURITIES SOLD BY FOREIGN ENTITIES IN THE US THE MOVE TOWARD GREATER FINANCIAL DISCLOSURE MARKS A FIRST FOR THE STATEOWNED OIL GIANT WHICH ONLY BEGAN PRODUCING ANNUAL REPORTS TWO YEARS AGO THE SEC REGISTRATION WILL GIVE PEMEX MUCH GREATER ACCESS TO CAPITAL IN RETAIL MARKETS AT LOWER INTEREST RATES ANALYSTS SAID TWO YEARS AGO PEMEX ANNOUNCED A BROAD 20 BILLION MODERNIZATION PLAN FOLLOWING A DEBTSTRUCK DECADE WHEN OIL RESERVES CONTRACTED 10 IN THE LAST TWO YEARS ONCEBLOATED PEMEX HAS TRIMMED ITS STAFF BY A THIRD RESTRUCTURED ITSELF INTO FOUR OPERATING UNITS AND CONTRACTED WITH FOREIGN COMPANIES FOR DRILLING SERVICES WHILE SOME ECONOMISTS HAVE ADVOCATED PRIVATIZING PEMEX MEXICO'S REFORMMINDED PRESIDENT CARLOS SALINAS DE GORTARI HAS RULED THAT OUT AS A VIOLATION OF THE MEXICAN CONSTITUTION SIMILARLY PEMEX OFFICIALS EMPHASIZED THEY WON'T BE OFFERING EQUITY IN THIS COUNTRY'S REIGNING SYMBOL OF NATIONALISTIC PRIDE BECAUSE OF THOSE CONSTITUTIONAL RESTRICTIONS PEMEX OFFICIALS WOULDN'T SPECULATE ON THE SIZE OF THE BOND OFFERING BUT ANALYSTS GUESSED THE FIRST OFFERING WOULD BE NO LARGER THAN 150 MILLION PEMEX OFFICIALS DID SAY THEY WOULD LIKE TO MAKE THE SEC DISCLOSURE BY THE END OF THE YEAR BUT ARE IN THE PROCESS OF BRINGING THE PEMEX ACCOUNTING SYSTEM INTO COMPLIANCE WITH SEC ACCOUNTING RULES ENERGY ANALYSTS GENERALLY PRAISED THE MOVE BY PEMEX THE BOND MARKET WILL OFFER GOOD DEALS AND MOST LIKELY AT BETTER INTEREST RATES THAN THEY CAN GET IN THE BANKING COMMUNITY SAID RAFAEL QUIJANO A WASHINGTON DC ENERGY CONSULTANT AND YOU WILL NOW BE ABLE TO COMPARE A LITTLE BETTER PEMEX'S PERFORMANCE AGAINST OTHER OIL COMPANIES PEMEX RECENTLY HAS RAISED MORE THAN 1 BILLION IN EUROBONDS WHICH HAS LESS STRINGENT REQUIREMENTS ON FINANCIAL DISCLOSURE THAN THE US 9304060147 930406 ALLTELGTE PLAN ADVANCES LITTLE ROCK ARK ALLTEL CORP SAID IT SIGNED A DEFINITIVE AGREEMENT WITH GTE CORP FOR THE PREVIOUSLY ANNOUNCED PURCHASE OF GTE'S GEORGIA TELEPHONE OPERATIONS UNDER THE AGREEMENT ALLTEL WILL PAY GTE 440 MILLION AND SWAP 95000 TELEPHONE LINES IN ILLINOIS INDIANA AND MICHIGAN FOR APPROXIMATELY 285000 TELEPHONE LINES IN GEORGIA ALLTEL SAID IT EXPECTS THE EXCHANGE TO BE COMPLETED BY YEAR END 9304060146 930406 OTC FOCUS MARKET STEADIES AFTER FRIDAY'S PLUNGE AND COMPOSITE INDEX POSTS SMALL GAIN BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET STABILIZED FROM FRIDAY'S PLUNGE POSTING A SMALL RISE THE NASDAQ COMPOSITE INDEX INCHED UP 086 OR 013 TO 67071 BUT THE MARKET WAS STILL WEAK AFTER FRIDAY'S 1679POINT DECLINE WITH YESTERDAY'S DECLINING ISSUES OUTNUMBERING ADVANCERS 14061160 VOLUME WAS A LIGHT 1908 MILLION SHARES DOWN FROM FRIDAY'S 2793 MILLION SHARES THE MARKET IS KIND OF GOING SIDEWAYS SAID LOUIS TODD HEAD OF EQUITY TRADING AT JC BRADFORD & CO THE MARKET IS LIKE A SPONGE EVERY TIME IT FALLS THERE IS ENOUGH MONEY FROM MUTUAL FUNDS TO ABSORB THE LOSS AND KEEP THE SELLOFF FROM EXTENDING TOO FAR THE MARKET WILL BE SLOW MOST OF THIS WEEK BECAUSE OF THE PASSOVER AND EASTER HOLIDAYS SAID LANCE ZIPPER HEAD OF OTC TRADING AT KIDDER PEABODY & CO WHEN THE RATES GO DOWN THERE IS A LITTLE BIT OF NIBBLING BUT RIGHT NOW THERE AREN'T ANY AGGRESSIVE BUYERS OR SELLERS THE DAY'S SECOND MOST ACTIVE STOCK READRITE SAGGED 2 3/4 TO 15 ON 32 MILLION SHARES ALMOST FIVE TIMES ITS USUAL VOLUME GOLDMAN SACHS & CO ANALYST DANIEL BENTON LOWERED HIS 1993 EARNINGS ESTIMATE TO 205 A SHARE FROM 210 FOR THE FISCAL YEAR ENDING IN SEPTEMBER AND HIS 1994 EARNINGS ESTIMATE TO 250 A SHARE FROM 260 MR BENTON CONTINUES TO RATE READRITE A BUY BUT THE STOCK HAS BEEN REMOVED FROM GOLDMAN SACHS US PRIORITY LIST OF ABOUT 30 STOCKS THE MILPITAS CALIF COMPANY SUPPLIES MAGNETIC HEADS FOR COMPUTER DISK DRIVES WHICH HAVE BEEN UNDER PRICE PRESSURE COMPUTER STOCKS WERE MIXED INTEL JUMPED 2 5/8 TO 110 1/8 ORACLE SYSTEMS CLIMBED 5/8 TO 35 3/8 AND APPLE COMPUTER EASED 1/8 TO 50 MICROSOFT ADDED 1 3/4 TO 91 1/2 THIS WEEK'S BARRON'S MAGAZINE MENTIONED THAT THE COMPANY'S LONGAWAITED NEW OPERATING SYSTEM WINDOWS NT WILL BE UNVEILED ON MAY 24 ACCORDING TO THE ARTICLE WINDOWS NT REPRESENTS THE BIGGEST INNOVATION IN PERSONALCOMPUTER OPERATING SYSTEMS SINCE THE ARRIVAL OF WINDOWS ITS PREDECESSOR PRODUCT TRIMEDYNE ROSE 3/4 TO 7 7/8 THE IRVINE CALIF COMPANY SAID IT HAS RECEIVED CLEARANCE FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET ITS NEW SPINAL INTRODUCTION KIT TO TREAT LOWER BACK PAIN THE COMPANY SAID SALES OF THE KIT WILL BEGIN IN MAY GENTEX JUMPED 2 3/4 TO 31 A FEDERAL DISTRICT COURT IN GRAND RAPIDS MICH AWARDED THE COMPANY 22 MILLION IN DAMAGES IN ITS LAWSUIT AGAINST DONNELLY AS REPORTED ON FRIDAY THE TWO COMPANIES HAVE BEEN INVOLVED IN A PATENT FIGHT OVER THE MIRRORS THAT AUTOMATICALLY DIM THE GLARE OF REFLECTED LIGHT FOR ALMOST THREE YEARS DONNELLY BASED IN HOLLAND MICH AND GENTEX BASED IN ZEELAND MICH MAKE EXTERIOR AND INTERIOR SIDE AND REARVIEW MIRRORS FOR AUTOS SOFTWARE PUBLISHING PLUNGED 4 1/4 TO 8 3/4 THE SANTA CLARA CALIF COMPANY SAID IT EXPECTS TO POST EARNINGS IN THE RANGE OF 15 CENTS TO 17 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED WEDNESDAY COMPARED WITH 32 CENTS A SHARE A YEAR EARLIER THE COMPANY BLAMED LOWERTHANEXPECTED EARNINGS ON A REVENUE SHORTFALL FROM INTERNATIONAL MARKETS AND CONTINUED PRICE PRESSURES ON PRODUCTS FOR THE WINDOWS PLATFORM F&C INTERNATIONAL PLUMMETED 2 1/4 OR 50 TO 2 1/4 THE COMPANY SAID IT HAS FILED A LAWSUIT AGAINST JON P FRIES ITS FORMER PRESIDENT CHIEF EXECUTIVE OFFICER AND CHAIRMAN THE CINCINNATI COMPANY SAID ITS COMPLAINT ALLEGES THAT MR FRIES DIRECTED AND ACQUIESCED IN CONDUCT DESIGNED TO MANIPULATE THE COMPANY'S INVENTORY AND INFLATE THE COMPANY'S SALES FOR THE PURPOSE OF INFLATING THE COMPANY'S PROFITS AND BORROWING POWER F&C SAID IT REMOVED MR FRIES AS CHAIRMAN AND TERMINATED HIS EMPLOYMENT ON FRIDAY MR FRIES COULDN'T BE REACHED FOR COMMENT F&C MAKES FLAVORS AND FRAGRANCES USED IN FOOD BEVERAGES AND PHARMACEUTICAL PRODUCTS LITTLE SWITZERLAND PLUNGED 3 1/8 TO 10 5/8 THE RETAILER REPORTED EARNINGS OF 32 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED FEB 28 DOWN FROM 44 CENTS A SHARE A YEAR EARLIER BASED IN ST THOMAS VIRGIN ISLANDS THE COMPANY MARKETS WATCHES JEWELRY CRYSTAL CHINA AND FRAGRANCES CASINO DATA JUMPED TO 9 1/4 ALMOST DOUBLING ITS OFFERING PRICE OF 5 CASINO DATA PRICED 975000 SHARES THROUGH UNDERWRITERS LED BY EQUITY SECURITIES TRADING CO THE COMPANY MAKES ACCOUNTING AND PLAYERTRACKING INFORMATION SYSTEMS FOR THE CASINO INDUSTRY 9304060145 930406 KIRBY CORP SETS ACQUISITION HOUSTON KIRBY CORP SAID IT AGREED TO PURCHASE A CLOSELY HELD SHIPPING TRANSPORTATION COMPANY FOR 255 MILLION AFRAM LINES CO HOUSTON TRANSPORTS BULK AND PALLETTYPE CARGOES FOR THE US GOVERNMENT ITS FLEET CONSISTS OF THREE US FLAG VESSELS THAT SPECIALIZE IN TRANSPORTING GOVERNMENT MILITARY AND AID CARGOES TERMS OF THE AGREEMENT INCLUDE ONE MILLION KIRBY COMMON SHARES AND 10 MILLION TO BE PAID OVER FOUR YEARS FROM THE EARNINGS OF AFRAM KIRBY A MARINE TRANSPORTATION COMPANY HAS ABOUT 23 MILLION SHARES OUTSTANDING 9304060144 930406 POLITICS & POLICY PEROT'S HIGHTECH ORGANIZING TECHNIQUES MAKE OTHER GRASSROOTS GROUPS ENVIOUS AND IMITATIVE BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PATRICIA IRELAND PRESIDENT OF THE NATIONAL ORGANIZATION FOR WOMEN THINKS ABOUT ROSS PEROT ALL THE TIME I'M VERY JEALOUS SHE SAYS IF HE CAN GET AWAY WITH IT I WANT TO GET AWAY WITH IT WHAT SHE'S THINKING ABOUT IS MR PEROT'S PHENOMENAL SUCCESS IN BUILDING A GRASSROOTS ORGANIZATION THROUGH A BEWILDERING ARRAY OF CUTTINGEDGE TECHNOLOGIES MS IRELAND LIKE A GROWING NUMBER OF OTHERS WHO LEAD SPECIALINTEREST LARGEMEMBERSHIP ORGANIZATIONS WANTS TO DUPLICATE HIS TECHNIQUES I DREAM ABOUT GETTING INTO TV AND BROADCASTING THE WAY HE HAS SHE SAYS WE CAN'T SPEND MONEY THE SAME WAY BUT WE'RE TALKING ABOUT DOING OUR OWN PAYPERVIEW SHOWS WE'D HAVE ONE CALLED EVERYTHING YOU NEED TO KNOW ABOUT YOUR RIGHTS IN MARRIAGE AND DIVORCE' MAYBE WE'D DO ANOTHER ABOUT SEXUAL HARASSMENT WE'D USE THEM TO GET OUR MESSAGE ACROSS AND TO RECRUIT NEW MEMBERS HER ORGANIZATION HAS ABOUT 250000 MEMBERS NOW I'D LIKE A MILLION BY THE END OF THE CENTURY SHE SAYS ALREADY MR PEROT HAS LEAPFROGGED EVERY OTHER ORGANIZATION IN THE COUNTRY SAYS ROGER CRAVER PRESIDENT OF CRAVER MATHEWS SMITH & CO FUNDRAISING SPECIALISTS FOR PUBLICINTEREST ORGANIZATIONS IT'S A GEOMETRIC LEAP MR CRAVER'S FIRM SPECIALIZES IN TRADITIONAL DIRECTMAIL TECHNIQUES IT BUYS LISTS OF NAMES TO ADD TO ITS COLLECTION AND THEN WORKS THOSE LISTS TO COME UP WITH NEW MEMBERS AND CASH FOR GROUPS IT REPRESENTS NOW COMMON CAUSE THE SIERRA CLUB AND GREENPEACE AMONG OTHERS BUT THAT MAY NO LONGER BE THE FUTURE FOR THESE GROUPS LESS THAN HALF THE ADULTS IN THIS COUNTRY READ SAYS MR CRAVER MOST OF THEM WATCH TV SO WHAT PEROT HAS DONE WITH TV AND WHAT CLINTON HAS DONE WITH HIS TOWN MEETINGS IS THE NEW STANDARD THE REST OF US WILL FOLLOW RALPH NADER NOW A KIND OF FATHER FIGURE FOR PUBLICINTEREST LOBBYING AGREES IT'S CHANGING HOW WE DO THINGS HE SAYS THE 30MINUTE INFOMERCIAL APPEARS TO BE VERY EFFECTIVE ON HOT ISSUES AS PIONEERED BY MR PEROT THE INFOMERCIAL IS A HYBRID A DOCUMENTARY CONTAINING SERIOUS INFORMATION CONVEYED BY MR PEROT WITH CHARTS AND GRAPHS ALONG WITH A BLATANT PITCH FOR MONEY AND SUPPORT HE DOES IT BY SHEER BOLDNESS SAYS MR NADER HE WAVES A BANNER WITH HIS 800 OR 900 NUMBER I DON'T THINK I COULD EVER DO THAT BUT IT'S ALREADY HAPPENING ELSEWHERE WE HAVE AN INFOMERCIAL ON THE DRAWING BOARD RIGHT NOW SAYS BILL HOWARD EXECUTIVE VICE PRESIDENT OF THE NATIONAL WILDLIFE FUND ONE OF THE MOST SUCCESSFUL FUNDRAISING GROUPS WITHIN THE ENVIRONMENTAL COMMUNITY IT'S EXPENSIVE BUT CHANCES ARE THAT WE'LL GO AHEAD WITH IT THE 30MINUTE SHOW WOULD FOCUS ON ENDANGERED SPECIES THE BATTLE FOR CLEAN AIR AND WATER AND HEALTH THREATS FROM ENVIRONMENTAL POLLUTION IT WOULD INCLUDE OF COURSE A PITCH FOR PEOPLE TO SEND IN CASH TO JOIN THE CAUSE MR HOWARD SAYS HIS ORGANIZATION WHICH BOASTS 800000 ADULT MEMBERS RELIED ON DIRECT MAIL FOR YEARS BUT IT'S TOO EXPENSIVE NOW AND TOO MANY PEOPLE JUST THROW IT AWAY HANDGUN CONTROL INC THE ANTIGUN ORGANIZATION ALREADY HAS ITS OWN INFOMERCIAL CALLED AMERICA NEEDS A NATIONAL GUN POLICY AND IT HAS RUN IT ON CABLE TV SEVERAL TIMES IN THE PAST FEW MONTHS HANDGUN CONTROL WITH 360000 MEMBERS USES A 900 NUMBER WITH THE VIDEO TO RECRUIT NEW MEMBERS THE NATIONAL RIFLE ASSOCIATION THE PROGUN LOBBY USES SHORT TV COMMERCIALS AND 800NUMBER AND 900NUMBER TECHNOLOGY TO BUILD ITS MEMBERSHIP WHICH IS MORE THAN TWO MILLION STRONG IT SAYS BUT THE NRA'S SEARCH FOR NEW MEMBERS IS MADE EASIER BY THE FACT THAT IT HAS A TARGET AUDIENCE LITERALLY AND FIGURATIVELY PEOPLE WHO OWN AND SHOOT GUNS AND WHO WORRY THE GOVERNMENT WANTS TO TAKE THEIR GUNS AWAY BY THE SAME TOKEN THE GROWING CHRISTIAN COALITION FOUNDED BY EVANGELIST PAT ROBERTSON AIMS ITS DIRECT MAIL AND TELEMARKETING AT A VERY SPECIFIC AUDIENCE MEMBERS OF CONSERVATIVE EVANGELICAL CHURCHES IT HAS PICKED UP 350000 MEMBERS SO FAR BUT MR PEROT IS MUCH MORE AMBITIOUS HE ENVISIONS MILLIONS OF MEMBERS FOR HIS ORGANIZATION UNITED WE STAND AMERICA IT'S AN UNDERTAKING THAT LOOKS SUSPICIOUSLY LIKE THE LAUNCH OF A NEW POLITICAL PARTY I USED TO SAY WE HAD TWOANDAHALF PARTIES SAYS POLITICAL ANALYST KEVIN PHILLIPS HE MEANS THE DEMOCRATS THE REPUBLICANS AND PEROT NOW I THINK WE HAVE TWO AND THREEQUARTERS HOW MANY PEOPLE MR PEROT HAS RECRUITED IN HIS ADS WHICH HE RUNS IN NEWSPAPERS TOO IS ANYBODY'S GUESS HE ASKS SUPPORTERS TO SEND 15 TO BECOME A PART OF HIS MOVEMENT BUT HE WON'T SAY HOW MANY HAVE JOINED VAGUE REFERENCES TO A MILLION MEMBERS HAVE BEEN FLOATED AND MR PEROT'S SONINLAW CLAYTON MULFORD THE ORGANIZATION'S GENERAL COUNSEL TALKS ABOUT PICKING UP 100000 ADHERENTS A WEEK MR CRAVER THE DIRECTMAIL SPECIALIST IS CONVINCED MR PEROT ALREADY HAS SIGNED UP A LOT MORE THAN A MILLION WITH THE VOLUME OF THE ADVERTISING HE'S BEEN USING IT'S GOT TO BE BIG HE'S PLAYING A NUMBERS GAME MR CRAVER SAYS MR PEROT PAID 15000 LATE IN MARCH FOR A NATIONAL POLL BY THE GORDON BLACK ORGANIZATION THAT INCLUDED A QUESTION ABOUT HOW MANY PEOPLE MIGHT BE INTERESTED IN JOINING UNITED WE STAND AMERICA AND PAYING 15 FOR THE PRIVILEGE MR BLACK SAYS 20 OF THE RESPONDENTS SAID THEY WOULD BE INTERESTED IF 20 OF THE ADULTS IN THE US ACTUALLY SIGNED UP MR PEROT WOULD BE LEADING A POLITICAL JUGGERNAUT OF 40 MILLION PEOPLE EVEN IF ONLY HALF OF THEM SIGNED UP SAYS MR BLACK UNITED WE STAND AMERICA WOULD BE LARGER THAN ALL OF ORGANIZED LABOR IN THIS COUNTRY THE PEROT PEOPLE SAY THEY CHOSE MR BLACK TO DO THEIR SURVEY BECAUSE HE WORKS SO FAST TO GET RESULTS BUT IN FACT IT MAY BE SIGNIFICANT THAT MR BLACK IS A LEADING ADVOCATE FOR THE CREATION OF A NEW POLITICAL PARTY IN THE US WHATEVER THE NUMBERS MR PEROT AND HIS ORGANIZATION WILL CONTINUE TO USE THEIR BREAKTHROUGH TECHNOLOGY TO PLAY A SIGNIFICANT ROLE IN AMERICAN POLITICIAL LIFE AND IF MR CLINTON FALTERS MR PEROT'S ROLE COULD BECOME CENTRAL AT THE VERY LEAST PREDICTS ROBERT BALKIN EDITOR IN CHIEF OF THE HOTLINE A COMPUTERIZED DAILY POLITICAL NEWSLETTER HE'S GOING TO TAKE THIS HUGE LIST OF SUPPORTERS PUT IT ON HIS COMPUTER AND USE IT TO BULLY PEOPLE IN THE CONGRESS AND IN THE WHITE HOUSE ADDS MR PHILLIPS REPUBLICANS AND DEMOCRATS ALIKE ARE SCARED OF HIM THEY'RE ALL BETWEEN A ROCK AND A HARD PLACE THEY ATTACK HIM AND THEY ENRAGE HIS SUPPORTERS AND THEY ALL NEED THOSE PEROT PEOPLE TO WIN THEIR OWN ELECTIONS 9304060143 930406 INTERNATIONAL THOMSONCSF GETS CONTRACT PARIS THOMSONCSF SA A FRENCH ELECTRONICS AND DEFENSE CONCERN SAID IT IS PART OF A CONSORTIUM THAT HAS BEEN CREATED TO BE PRIME CONTRACTOR FOR RUSSIA'S AIR TRAFFIC CONTROL MODERNIZATION PROGRAM OTHER MEMBERS OF THE GROUP ARE WESTINGHOUSE ELECTRIC CORP OF PITTSBURGH AND BURAN A JOINT VENTURE OF ITALY'S ALENIA AND SOME RUSSIAN COMPANIES THE FIRST PHASE OF THE MODERNIZATION PROGRAM WILL INVOLVE THE MOSCOW REGION IN 1992 THOMSONCSF WORKED OUT A MASTER PLAN FOR RENOVATION AND EXTENSION OF RUSSIA'S AIR TRAFFIC CONTROL INFRASTRUCTURE AND WAS SELECTED BY THE EUROPEAN COMMUNITY TO PROVIDE RELATED TRAINING AND TECHNICAL ASSISTANCE 9304060142 930406 DEUTSCHE TERMINBOERSE FRANKFURT DEUTSCHE TERMINBOERSE A GERMAN FUTURES AND OPTIONS EXCHANGE PLANS TO ALLOW FOREIGNBASED PARTICIPANTS WITHOUT OPERATIONS IN GERMANY TO TRADE DIRECTLY INTO ITS SYSTEM DTB CHAIRMAN GERHARD EBERSTADT SAID THE DECISION IS PART OF THE EXCHANGE'S OVERALL STRATEGY OF INTERNATIONALIZATION AND IT FOLLOWS THEIR PLANS TO LINK WITH THE PARISBASED MARCHE A TERME INTERNATIONAL DE FRANCE LAST FALL THE EXCHANGE PERMITTED THE FOREIGN BRANCHES OF DTB MEMBERS TO HAVE DIRECT LINKS TO THE SYSTEM DTB ALSO SAID THAT IT HAD APPROVED EXTRA CLEARING GMBH'S AMSTERDAM BRANCH AS THE FIRST TO HAVE SUCH ACCESS EXTRA CLEARING PLANS TO HAVE DTB TERMINALS INSTALLED THIS MONTH 9304060141 930406 LOMAS DIVISION SIGNS CONTRACTS DALLAS LOMAS FINANCIAL CORP SAID ITS INFORMATION SYSTEMS UNIT SIGNED SIX LONGTERM CONTRACTS WITH FINANCIAL INSTITUTIONS THAT ARE EXPECTED TO GENERATE 26 MILLION IN REVENUE FIVEYEAR 16 MILLION CONTRACTS WERE SIGNED WITH IMPERIAL CREDIT INDUSTRIES SANTA ANA HEIGHTS CALIF BOATMEN'S MORTGAGE CORP ST LOUIS GENERAL AMERICAN FINANCIAL COSTA MESA CALIF AND SEARS MORTGAGE CORP CHICAGO THE COMPANY ALSO SIGNED 10 MILLION CONTRACTS WITH ATLANTIC RESIDENTIAL MORTGAGE BALTIMORE AND FIRST AMERICAN REAL ESTATE TAX SERVICE IRVINE CALIF 9304060140 930406 WOLOHAN LUMBER SALES SAGINAW MICH WOLOHAN LUMBER CO SAID SALES FOR STORES OPEN ONE YEAR OR LONGER DROPPED 2 IN MARCH TO 231 MILLION FROM 236 MILLION A YEAR AGO SALES FOR ALL STORES DECLINED 1 IN MARCH TO 234 MILLION FROM 236 MILLION LAST YEAR SAMESTORE SALES FOR THE FIRST THREE MONTHS OF THE YEAR CLIMBED 2 TO 627 MILLION AT THE BUILDING SUPPLY COMPANY FROM 615 MILLION IN THE SAME YEARAGO PERIOD SALES FOR ALL STORES FOR THE FIRST THREE MONTHS ROSE 3 TO 636 MILLION UP FROM 615 MILLION 9304060139 930406 WHO'S NEWS PEPSI SHUFFLES DUTIES AMONG TOP OFFICIALS AT RESTAURANT UNIT PURCHASE NY PEPSICO INC NAMED THREE SENIOR EXECUTIVES TO NEW POSITIONS IN A PARTIAL RESHUFFLING OF RESPONSIBILITIES AT THE BEVERAGE AND FOOD COMPANY'S RESTAURANT OPERATIONS RANDALL C BARNES 41 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND TREASURER OF PEPSICO AND WILL BE RESPONSIBLE FOR CORPORATE FINANCE TREASURY AND TAX OPERATIONS MR BARNES HAD BEEN PRESIDENT OF PEPSI'S PIZZA HUT INTERNATIONAL UNIT AND BEFORE THAT SENIOR VICE PRESIDENT OF STRATEGIC PLANNING AND NEW BUSINESS DEVELOPMENT AT THE PARENT COMPANY SUCCEEDING MR BARNES WILL BE MICHAEL K LORELLI 42 WHO WAS FORMERLY PRESIDENT OF PEPSICOLA EAST THE DOMESTIC BEVERAGE OPERATION IN HIS NEW POSITION MR LORELLI WILL BE RESPONSIBLE FOR THE NEARLY 2000 COMPANYOWNED AND FRANCHISED PIZZA HUT RESTAURANTS OUTSIDE THE US MR LORELLI ALONG WITH ROGER ENRICO NOW CHAIRMAN AND CHIEF EXECUTIVE OF PEPSICO WORLDWIDE FOODS DEVELOPED PEPSI'S MOVE INTO SOCALLED BIG EVENT MARKETING LINKING THE COMPANY'S PRODUCTS TO SPORTS ELECTRONICS HOME VIDEOS AND MUSIC KENNETH T STEVENS 41 WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT OF MARKETING AND NEW CONCEPTS AT PEPSI'S TACO BELL UNIT HE HAD BEEN SENIOR VICE PRESIDENT AND TREASURER AT PEPSICO AT TACO BELL MR STEVENS WILL BE RESPONSIBLE FOR MARKETING AND DEVELOPMENT OF NEW DISTRIBUTION CHANNELS THE MOVES SAID A PEPSI SPOKESMAN ARE IN KEEPING WITH THE COMPANY'S PRACTICE OF ENSURING THAT TOP EXECUTIVES GET EXPERIENCE ACROSS A NUMBER OF BUSINESS LINES 9304060138 930406 WHO'S NEWS ROONEY'S PAY ROSE AS STOCK OF WASTE MANAGEMENT SLID BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WASTE MANAGEMENT INC PRESIDENT PHILLIP B ROONEY REAPED TOTAL 1992 PAY OF 195 MILLION IN A YEAR WHEN THE TRASH HAULER'S STOCK PRICE BEGAN A STEEP DECLINE THE COMPANY HIT HARD BY RECESSION INCREASED COMPETITION AND A GLUT OF GARBAGE DISPOSAL CAPACITY IN SOME MARKETS THAT FORCED PRICE CUTTING HAS SEEN ITS STOCK TUMBLE FROM 46625 EARLY LAST YEAR TO 32125 A SHARE IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY THAT WAS UP 75 CENTS FROM LAST FRIDAY WHEN THE STOCK HIT A 52WEEK LOW ANALYSTS HAVE BEEN TRIMMING EARNINGS ESTIMATES AND A FEW ARE QUESTIONING WHETHER WASTE MANAGEMENT CAN REGAIN THE RAPID GROWTH IN PROFIT IT ENJOYED DURING MOST OF THE 1980S THE COMPANY WARNED IN ITS ANNUAL REPORT THAT IT DOESN'T EXPECT TO BE ABLE TO RAISE PRICES IN THE US GARBAGE COLLECTIONANDDISPOSAL BUSINESS DURING THE FIRST HALF OF 1993 MR ROONEY 48 YEARS OLD AND ALSO CHIEF OPERATING OFFICER BENEFITTED FROM WASTE MANAGEMENT'S COMPLICATED CAPITAL STRUCTURE IN WHICH FOUR UNITS HAVE SHARES THAT ARE PUBLICLY TRADED THUS EVEN WHEN IT'S A BAD YEAR FOR WASTE MANAGEMENT STOCK EXECUTIVES CAN REALIZE BIG GAINS MR ROONEY'S TOTAL 1992 PAY INCLUDED 103 MILLION IN GAINS ON EXERCISE OF STOCK OPTIONS IN WHEELABRATOR TECHNOLOGIES INC WHICH OPERATES TRASHTOENERGY PLANTS 55 MILLION IN GAINS ON WASTE MANAGEMENT STOCK OPTIONS 14 MILLION IN GAINS ON OPTIONS OF CHEMICAL WASTE MANAGEMENT INC A HAZARDOUS WASTE UNIT SALARY AND BONUS FROM WASTE MANAGEMENT OF 1282500 AND A SPECIAL PAYOUT FROM WHEELABRATOR OF 880200 A SPOKESMAN SAID MR ROONEY WAS PAID WELL BECAUSE WHEELABRATOR PERFORMED REMARKABLY WELL THE SPOKESMAN ADDED HE RECEIVES NO SALARY FROM THE UNIT MR ROONEY ALSO SERVES AS WHEELABRATOR'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND WAS GIVEN OPTIONS TO BUY 16 MILLION SHARES IN THE UNIT IN 1990 THE STOCK HAS SINCE MORE THAN DOUBLED AND WAS QUOTED IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AT 19375 A SHARE UNCHANGED IN 1991 MR ROONEY RECEIVED SALARY AND INCENTIVE PAY OF 992500 THE COMPANY DIDN'T BREAK OUT GAINS FROM EXERCISE OF STOCK OPTIONS FOR A PARTICULAR YEAR BUT THEY WERE MUCH SMALLER FOR 1989 THROUGH 1991 MR ROONEY HAD COMBINED GAINS ON WASTE MANAGEMENT OPTIONS OF 23 MILLION AND NO GAINS ON CHEMICAL WASTE MANAGEMENT STOCK DEAN L BUNTROCK WASTE MANAGEMENT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS PAID 1650000 IN SALARY AND BONUS LAST YEAR AND HAD COMBINED GAINS ON EXERCISE OF OPTIONS IN THE PARENT COMPANY AND UNITS OF 15 MILLION IN 1991 MR BUNTROCK RECEIVED 11 MILLION IN SALARY NO BONUS AND COMBINED GAINS ON EXERCISE OF STOCK OPTIONS OF 26 MILLION 9304060137 930406 NUKOTE HOLDING INC OFFERING DALLAS NUKOTE HOLDING INC SAID IT AGREED TO A SECONDARY OFFERING OF AS MANY AS 25 MILLION OF ITS CLASS A COMMON SHARES AT THE REQUEST OF CLAYTON & DUBILIER PRIVATE EQUITY FUND II LIMITED PARTNERSHIP ONE OF ITS INITIAL STOCKHOLDERS THE PRINTING PRODUCTS MAKER WHICH WENT PUBLIC IN OCTOBER 1992 WITH AN OFFERING OF 38 MILLION COMMON SHARES SAID IT EXPECTS TO FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION IN THE NEXT FOUR WEEKS NUKOTE ISN'T ISSUING ANY NEW SHARES AND WON'T RECEIVE ANY PROCEEDS FROM THE OFFERING IT SAID 9304060136 930406 WHO'S NEWS FABRICENTERS NAMES PRESIDENT HUDSON OHIO ALAN ROSSKAM CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FABRICENTERS OF AMERICA INC WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT OF THIS FABRIC AND HOUSEWARES CONCERN MR ROSSKAM 43 YEARS OLD SUCCEEDS JAMES MONRO JR 43 WHO RESIGNED AS PRESIDENT CHIEF OPERATING OFFICER AND DIRECTOR TO PURSUE OTHER INTERESTS FABRICENTERS DIDN'T NAME A NEW CHIEF OPERATING OFFICER OR DIRECTOR JANE AGGER 44 SENIOR VICE PRESIDENT OF MERCHANDISING AND MARKETING WAS NAMED EXECUTIVE VICE PRESIDENT 9304060135 930406 FOR GROWING BAND OF SHOPPERS CLEAN MEANS GREEN BY KATHLEEN DEVENY NOT LONG AGO MARKETERS HAD TO DO LITTLE MORE THAN SLAP THE WORDS EXTRA MAXIMUM OR FULLSTRENGTH ON HOUSEHOLDCLEANING PRODUCTS TO CATCH CONSUMERS' ATTENTION BUT NOW A GROWING NUMBER OF SHOPPERS ARE FORGOING THE LATEST TECHNICAL INNOVATION IN FAVOR OF OLDFASHIONED CLEANING PRODUCTS THAT ARE MILDER AND REQUIRE MORE ELBOW GREASE THEY ARE PUTTING THE ENVIRONMENT BEFORE CONVENIENCE AND RETURNING TO SUCH NATURAL CLEANERS AS BAKING SODA VINEGAR AND LEMON JUICE EVEN IF SUCH AGENTS AREN'T ALWAYS AS EFFECTIVE AS MORE CAUSTIC COMPETITORS IT USED TO BE MUCH EASIER TO FIGURE OUT WHAT PEOPLE WANTED IN THIS CATEGORY IT WAS PURE PERFORMANCE SAYS JIM BARCH VICE PRESIDENT OF MARKETING FOR CHURCH & DWIGHT CO WHICH MAKES ARM & HAMMER BAKING SODA NOW SOME PEOPLE CONSIDER HARM TO THE ENVIRONMENT AS LACK OF PERFORMANCE TO ENCOURAGE USE OF ARM & HAMMER AS A CLEANSER THE COMPANY NOW OFFERS CONSUMERS WHO WRITEIN A WATERPROOF REFILLABLE PLASTIC DISPENSER BECKY BAERWALD 40 YEARS OLD AND FROM GRESHAM ORE WAS SURVEYED RECENTLY BY CONSUMER NETWORK INC A PHILADELPHIA CONSUMERRESEARCH FIRM SHE SAYS SHE BEGAN USING BAKING SODA NOT LONG AGO TO CLEAN HER FIBERGLASS SHOWER STALL IT'S NOT REAL EXPENSIVE AND IT'S GOOD FOR THE ENVIRONMENT SHE SAYS SIMILARLY PAT BEACH 42 OF LAKE VILLA ILL SAYS SHE CAREFULLY READS LABELS AND CHOOSES ENVIRONMENTALLY SAFE PRODUCTS WHENEVER SHE CAN YOU HAVE TO USE A LITTLE MORE ELBOW GREASE THAN YOU DO WITH CAUSTIC CHEMICALS SHE ADDS MARKETING GURUS SAY THE GREEN CLEANING TREND ILLUSTRATES A MAJOR SHIFT IN CONSUMER BEHAVIOR THROUGHOUT MUCH OF THE 1980S CONSUMERS WERE MOTIVATED MAINLY BY CONVENIENCE AND PERFORMANCE AND SELECTED CLEANING PRODUCTS ON THE BASIS OF HOW MUCH TIME THEY WOULD TRIM FROM SUCH MUNDANE TASKS AS POLISHING COUNTER TOPS OR REMOVING MILDEW NOW MANY CONSUMERS ARE MORE CONCERNED ABOUT POLLUTING WASTE WATER OR EXPOSING THEIR CHILDREN TO HARMFUL CHEMICALS THAN SHAVING SECONDS OFF HOUSEHOLD CHORES SOME CONSUMERBEHAVIOR EXPERTS SEE THE ATTITUDE AS PART OF A GROWING DETOX MOVEMENT CONSUMERS WHO ARE BOMBARDED WITH NEWS ACCOUNTS OF NEW CARCINOGENS AND FOOD CONTAMINATION ARE TRYING TO PROTECT THEMSELVES SAYS JOANN ROBOTTI A VICE PRESIDENT AT BRAINRESERVE INC A NEW YORK CONSULTING FIRM IN ADDITION TO NATURAL CLEANING PRODUCTS THEY ARE EATING MORE ORGANIC PRODUCE GULPING DOWN BOTTLED WATER AND WEARING CLOTHING MADE FROM ORGANICALLY GROWN COTTON THE ONE PLACE YOU CAN CONTROL YOUR ENVIRONMENT IS AT HOME SAYS MS ROBOTTI ALTHOUGH SHOPPERS ARE SKEPTICAL OF MANY ENVIRONMENTAL PITCHES FOR CONSUMER PRODUCTS SALES OF GREEN CLEANERS ARE GENERALLY BRIGHT SIMPLE GREEN A BIODEGRADABLE CLEANER INVENTED MORE THAN 20 YEARS AGO TO CLEAN COMMERCIAL COFFEEROASTING EQUIPMENT RANG UP SALES OF 157 MILLION IN SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS IN THE 52 WEEKS ENDED JAN 31 UP ABOUT 5 FROM A YEAR EARLIER THE PRODUCT WHICH IS MARKETED BY SUNSHINE MAKERS INC IN HUNTINGTON HARBOR CALIF HAS BEEN IN MASS DISTRIBUTION FOR ABOUT SIX YEARS MORE MAINSTREAM MARKETERS ARE ALSO ATTEMPTING TO CAPITALIZE ON THE TREND SINCE IT WAS LAUNCHED LAST FALL HJ HEINZ CO'S ALLNATURAL CLEANING VINEGAR HAS RUNG UP SALES OF MORE THAN 1 MILLION THE PRODUCT WHICH IS TWICE THE STRENGTH OF THE COMPANY'S COOKING VINEGAR AND HAS A LEMON SCENT MARKS HEINZ'S FIRST MOVE BEYOND THE FOOD AISLES ALTHOUGH PEOPLE HAVE USED VINEGAR TO CLEAN FOR GENERATIONS THIS IS A PRODUCT THAT MIGHT NOT HAVE BEEN SUCCESSFUL A FEW YEARS AGO SAYS GAIL CONGER ASSOCIATE PRODUCT MANAGER FOR VINEGAR AT HEINZ BUT NOW THERE'S A REAL MOVE BACK TO THE BASICS SEE RELATED STORY MARKETSCAN AS MORE AMERICANS DECLARE WAR ON DIRT CLEANINGPRODUCT FIRMS MAKE TIDY SUMS WSJ APRIL 6 1993 9304060134 930406 NATIONAL HEALTH LABS' FORMER CEO GETS PRISON SENTENCE FINE LA JOLLA CALIF ROBERT E DRAPER FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NATIONAL HEALTH LABORATORIES INC WAS SENTENCED TO THREE MONTHS IN PRISON FOR HIS ROLE IN THE MEDICARE FRAUD SCANDAL THAT ROCKED THE COMPANY LAST YEAR US DISTRICT JUDGE EARL B GILLIAM ALSO SENTENCED MR DRAPER WHO FACED UP TO 10 YEARS IN PRISON TO TWO MONTHS OF COMMUNITY CONFINEMENT FOLLOWING HIS RELEASE FROM PRISON IN ADDITION JUDGE GILLIAM FINED MR DRAPER 500000 THE MAXIMUM POSSIBLE BASED ON THE CHARGES IN A DECEMBER PLEA AGREEMENT BETWEEN MR DRAPER AND THE JUSTICE DEPARTMENT MR DRAPER WHO HAD BEEN NATIONAL HEALTH'S PRESIDENT FOR MORE THAN 20 YEARS AGREED TO RESIGN AS PART OF THE AGREEMENT HE WAS REPLACED IN DECEMBER BY JAMES MAHER A FORMER VICE CHAIRMAN OF FIRST BOSTON CORP IN DECEMBER THE COMPANY AGREED TO A 110 MILLION SETTLEMENT WITH THE GOVERNMENT ARISING OUT OF THE SAME MEDICARE FRAUD CHARGES FOLLOWING A TWOYEAR INVESTIGATION THE COMPANY LIKE MR DRAPER WAS ACCUSED OF BILLING UNNECESSARY LABORATORY TESTS TO MEDICARE AND OTHER GOVERNMENT INSURANCE PROGRAMS THROUGH HIS ATTORNEY MICHAEL PANCER OF SAN DIEGO MR DRAPER SAID HE HAD NO COMMENT ON THE SENTENCE JUDGE GILLIAM RECOMMENDED THAT MR DRAPER SERVE HIS TIME AT THE FEDERAL CORRECTIONAL INSTITUTE AT NELLIS NEV MR DRAPER IS TO BEGIN SERVING HIS SENTENCE MAY 3 MR PANCER SAID HE WASN'T SURPRISED THAT HIS CLIENT GOT JAIL TIME HOWEVER HE MAINTAINS THAT GOVERNMENT LAWYERS TREATED MR DRAPER UNFAIRLY I AM NOT GOING TO COMMENT ON THE SENTENCE BUT I THINK THE PROSECUTION WAS UNFAIR MR PANCER SAID THE GOVERNMENT CHANGED ITS INTERPRETATION OF THE MEDICARE STATUTE IN MIDSTREAM HE MR DRAPER HAD LEGAL ADVICE THAT HIS ACTIONS WERE LEGAL IN APRIL NATIONAL HEALTH POSTED A 506 MILLION FOURTHQUARTER LOSS AFTER TAKING A 136 MILLION PRETAX CHARGE THAT INCLUDED THE 110 MILLION PAYMENT TO THE GOVERNMENT PLUS ASSOCIATED LEGAL AND OTHER COSTS AND A CONTINGENCY FUND A NATIONAL HEALTH SPOKESWOMAN SAID THE COMPANY HAD NO COMMENT ON MR DRAPER'S SENTENCING 9304060132 930406 SPEAKING OF BUSINESS YET ANOTHER CLINTON COMMISSION ON UNIONS BY LINDLEY H CLARK JR UNIONS IN THE PRIVATE SECTOR ARE SLIDING DOWN THE TUBES WHILE PUBLICSECTOR UNIONS ARE MAKING STEADY GAINS THE GOVERNMENT DOESN'T UNDERSTAND WHAT'S GOING ON SO IT'S SETTING UP A COMMISSION TO LOOK INTO MATTERS ITS MAJOR CONCERN OF COURSE IS WHY PRIVATE UNIONS ARE DOING SO BADLY ONE CYNIC AFTER AN ADVANCE LOOK AT THE COMMISSION'S MEMBERS SUGGESTED THAT THE GROUP MIGHT BE CALLED FRIENDS OF LABOR THE LIST INCLUDES RAY MARSHALL AND WILLIAM USERY FORMER SECRETARIES OF LABOR RONALD BROWN CURRENT SECRETARY OF COMMERCE AND RICHARD FREEMAN A HARVARD ECONOMIST THE CHAIRMAN IS JOHN DUNLOP ANOTHER FORMER SECRETARY OF LABOR THE GROUP IS BEING ASSEMBLED SLOWLY AND ACCORDING TO REPORTS MOST OF ITS MEMBERS WILL BE ACADEMICS ITS CHIEF PROPONENT IS ROBERT REICH THE CURRENT SECRETARY OF LABOR MR REICH WANTS TO PLAY FAIR BUT HE SEEMS TO FEEL THAT ONE OF THE PROBLEMS FACED BY THE PRIVATE UNIONS IS AN UNEVEN PLAYING FIELD IN THEIR DEALINGS WITH MANAGEMENT THE COMMISSION'S CHORE HAS AN INNOCUOUS TITLE ON THE FUTURE OF WORKER/MANAGEMENT RELATIONS BUT THERE IS NO DOUBT THAT THE COMMISSION AND ITS STAFF WILL BE THOROUGHLY EXAMINING THE CURRENT STATE OF LABOR LAW THE COMMISSION WILL OF COURSE EXAMINE THE BASIC LABOR LAW THE NATIONAL LABOR RELATIONS ACT IT ALSO MAY TAKE A HARD LOOK AT THE RAILWAY LABOR ACT WHICH COVERS LABOR RELATIONS IN THE RAIL AND AIRLINE INDUSTRIES THE DISCUSSIONS ONCE THEY GET STARTED ARE EXPECTED TO LAST AT LEAST THREE MONTHS IT'S SURE TO BE A VERY CONTENTIOUS THREE MONTHS TURNING UP A WIDE SPECTRUM OF VIEWS MR FREEMAN OF HARVARD THINKS THAT THE DECLINE IN UNIONIZATION IN THE PRIVATE SECTOR IS LARGELY EXPLAINED BY GROWING ANTIUNION ACTIVITIES OF MANAGEMENT HE ARGUES THAT UNIONS HAVE DONE RELATIVELY WELL IN THE PUBLIC SECTOR WHERE MANAGEMENT OPPOSITION IS MORE RESTRICTED MOREOVER HE CONTENDS THAT PRIVATESECTOR UNIONS HAVE DONE REASONABLY WELL IN CANADA WHERE IT IS HARDER FOR MANAGEMENT TO OPPOSE UNIONS FOR INSTANCE LABOR UNIONS IN CANADA CAN ACQUIRE NEW MEMBERS MERELY BY HAVING WORKERS SIGN AUTHORIZATION CARDS IN THE US BY CONTRAST EMPLOYERS CAN AND DO INSIST ON SECRETBALLOT VOTING AND THERE ARE INDICATIONS THAT AT LEAST SOME WORKERS PREFER IT THAT WAY PRINCETON'S HENRY FARBER AND ALAN KRUEGER IN A NATIONAL BUREAU OF ECONOMIC RESEARCH WORKING PAPER NO 4216 SUGGEST LOOKING AT THE NUMBERS ACTUALLY THE CANADIAN PUBLIC SECTOR IS MUCH MORE HEAVILY UNIONIZED THAN THE PRIVATE SECTOR UNIONIZATION IS GROWING RAPIDLY IN THE PUBLIC SECTOR WHILE DECLINING SOMEWHAT IN THE PRIVATE SECTOR SO THE DIFFERENCE BETWEEN THE TWO COUNTRIES IS TO SOME EXTENT A MATTER OF DEGREE MOREOVER SOME OF THE SURVEYS OF CANADIAN UNION MEMBERS INCLUDE MEMBERS OF PROFESSIONAL ASSOCIATIONS BUT AN ASSOCIATION OF PHYSICIANS FOR INSTANCE IS UNLIKELY TO CONSIDER ITSELF A UNION PROF FARBER THINKS IT WILL BE FINE IF SCHOLARS DETERMINE WHAT IS REALLY GOING ON BUT HE OFFERS SURVEY FINDINGS INDICATING WORKERS ARE PRETTY SATISFIED WITH THEIR JOBS WITH THEIR LEVEL OF PAY AND WITH THEIR JOB SECURITY IF THAT'S TRUE THE NEED FOR UNIONS HAS CERTAINLY DIMINISHED IN A 1990 PAPER THE PRINCETON PROFESSOR OFFERED EVIDENCE THAT THE INCREASE IN REPORTED SATISFACTION CAN ACCOUNT FOR THE ENTIRE DECLINE IN DEMAND FOR UNION REPRESENTATION AMONG NONUNION WORKERS BETWEEN 1977 AND 1984 THE REPORTED LEVEL OF SATISFACTION INDICATED BY SURVEYS REMAINS ROUGHLY CONSTANT BETWEEN 1984 AND 1992 WHY ARE THE PUBLICSECTOR UNIONS DOING SO MUCH BETTER THAN THOSE IN THE PRIVATE SECTOR HARVARD'S PROF FREEMAN THINKS A MAJOR DIFFERENCE IS THAT PRIVATESECTOR UNIONS ARE COVERED BY THE NATIONAL LABOR RELATIONS ACT WHILE THE PUBLICSECTOR UNIONS ARE COVERED BY STATE LAWS WHICH HE THINKS ARE MORE FRIENDLY PROF FARBER HOWEVER ARGUES THAT A PUBLIC UNION IS VERY DIFFERENT FROM A PRIVATE UNION PUBLICSECTOR UNIONS REGULARLY ENGAGE IN LOBBYING FOR FUNDING AND LEGISLATIVE SUPPORT SUCH ACTIVITIES ARE AIMED DIRECTLY AT BENEFITS FOR WORKERS AND THE WORKERS KNOW IT IT'S APPARENT THAT PUBLICSECTOR WORKERS ARE PROVIDING SERVICES THAT WORKERS WANT IT'S EQUALLY APPARENT THAT PRIVATESECTOR UNIONS AREN'T PROVIDING SERVICES THAT WORKERS SEE AS BEING AS VALUABLE AS THEY WERE IN YEARS PAST THERE'S AT LEAST SOME REASON TO QUESTION WHETHER ANOTHER EXPENSIVE GOVERNMENT STUDY IS NEEDED TO ACCENTUATE THE OBVIOUS IN THE CASE OF THE PRIVATESECTOR UNIONS IT MAY BE A CASE OF POOR PUBLIC RELATIONS IF THAT'S SO THE STATISTICS SUGGEST THE PR MEN HAD BETTER GET BUSY 9304060131 930406 REVIEW & OUTLOOK EDITORIAL THE SAME OLD SONG ON THE CAMPAIGN TRAIL BILL CLINTON RHAPSODIZED ABOUT ENTREPRENEURS AND THE SUNRISE SECTORS THAT MADE THE ECONOMY HUM IN THE 1980S BUT SINCE MOVING HIS VENUE TO THE WHITE HOUSE MR CLINTON'S POLICY IS MORE IN TUNE WITH BIG LABOR'S DREAM OF SOMEHOW RESTORING A BYGONE INDUSTRIAL AGE FROM HIS HARVARD PERCH ROBERT REICH ONCE HECTORED HIS STUDENTS ABOUT HOW GLOBAL MARKETS MEANT WORKERS AND INDUSTRY NEEDED TO BECOME MORE FLEXIBLE THE NEW LABOR SECRETARY HOWEVER IS PRETTY FLEXIBLE HIMSELF AND IS NOW BUSILY ORDERING THE GLOBAL SPIN INTO REVERSE DURING CONFIRMATION HE DECLARED THAT ORGANIZED LABOR'S SHRINKAGE WASN'T HEALTHY ON THE THEORY THAT EVIL REAGAN MACHINATIONS NOT ECONOMIC AND TECHNOLOGICAL CHANGE WERE RESPONSIBLE TO BEEF UP LABOR'S RECRUITING AND POLITICKING MR REICH HAS ISSUED ORDERS TO DISCOURAGE UNION MEMBERS FROM ASKING HOW THEIR DUES ARE SPENT AND TO RELIEVE UNION BOSSES FROM HAVING TO REPORT IN DETAIL WHERE THE MONEY GOES HE ALSO BACKS A COLAIZED MINIMUM WAGE AND HAS RESTORED UNION PAY SCALES FOR 50 BILLION IN FEDERAL CONSTRUCTION PROJECTS BOTH OF THESE WORK TO UNDERMINE NONUNION JOB SEEKERS WHO IN FACT ARE OFTEN MINORITIES MR REICH RECENTLY UNVEILED A NEW 10MEMBER COMMISSION WHICH IS SUPPOSED TO REDRAFT THE ANTIQUE NEW DEAL LABOR LAWS HE EXPLAINED THAT THE PANEL WOULD HAVE CARTE BLANCHE BUT WAS EXPECTED TO USE IT TO LEVEL THE PLAYING FIELD MEANING TIP IT TOWARD ORGANIZED LABOR THOUGH THE OSTENSIBLE SUBJECT IS THE FUTURE OF WORKERMANAGEMENT RELATIONS NOT A SINGLE MEMBER REPRESENTS THE NINETENTHS OF PRIVATE WORKERS AND MANAGEMENTS THAT AREN'T UNIONIZED JACK FARIS OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESSES WHICH BOASTS 603000 MEMBERS MIGHT BE PREVAILED UPON TO SPEAK FOR THE SORT OF COMPANIES THAT CREATED ALL THE NEW JOBS IN THE PAST 15 YEARS HE'S BEEN INFORMED THAT MR REICH CAN'T SEE HIM EVER INSTEAD THE PANEL WILL BE GETTING ITS BUSINESS ADVICE FROM PAUL ALLAIRE OF XEROX A MEMBER OF THE FORTUNE 500 WHICH COLLECTIVELY DISMANTLED FOUR MILLION JOBS DURING THE PAST DECADE PUTTING IN TWO CENTS ON BEHALF OF WORKING FOLKS WILL BE DOUGLAS FRASER OF THE UNITED AUTO WORKERS AN ORGANIZATION WHOSE FINGERPRINTS ARE ALL OVER THE NEARCORPSE OF THE US AUTO INDUSTRY DOWN BY HALF A MILLION JOBS WEDGED BETWEEN THESE BOOKENDS ARE THE USUAL ACADEMICS AND RETIRED BUREAUCRATIC WORTHIES JOHN DUNLOP THE PANEL'S CHAIRMAN SERVED AS LABOR SECRETARY IN THE FORD ADMINISTRATION BUT QUIT AFTER THE WHITE HOUSE WOULDN'T SIGN ABOARD HIS PLAN TO EXPAND THE RIGHTS OF PICKETING STRIKERS TO SHUT DOWN CONSTRUCTION SITES ALSO ON BOARD IS FORMER LABOR SECRETARY RAY MARSHALL WHOM THE NATIONAL JOURNAL DUBBED THE MOST LIBERAL OF CARTER'S ECONOMIC ADVISERS THE NEW COMMISSION IS EXPECTED TO RESURRECT THE CARTER WISH LIST MOST OF WHICH WAS AIMED AT BOOSTING ORGANIZED LABOR'S LEVERAGE OVER EMPLOYERS AND NONUNION WORKERS FOR GOOD MEASURE IT'S ALSO EXPECTED TO ENDORSE THE LARGER CLINTON PROGRAM OF MAKING INDUSTRY MORE COMPETITIVE BY PILING ON SUCH UNION FAVORITES AS HEALTHCARE MANDATES TRAINING TAXES FAMILY LEAVE AND SO FORTH WE GUESS ALL THIS WILL APPEAL TO THAT CLASS OF CEOS WHO ARE ALWAYS ANXIOUS TO BE PARTNERS WITH GOVERNMENT ALWAYS READY TO APPLAUD WHENEVER ANYBODY PROPOSES SADDLING THEIR MORE NIMBLE COMPETITORS WITH COSTLY UNION HEADACHES AND SOCIAL SPENDING OBLIGATIONS AND NO DOUBT THEY'LL EXPECT A PAYBACK IN THE CURRENCY OF INDUSTRIAL POLICY OF THE SORT NOW BEING DREAMED UP FOR THE AIRLINES SOME OF THE CLINTONITES ARGUE THAT THIS MAKES SHREWD ECONOMICS AS WELL AS GOOD POLITICS THEY POINT TO THE SUPPOSED SUCCESS OF THE GERMAN MODEL OF BIG BUSINESSBIG LABOR WELFARISM AS IF SOMEHOW EXPORT SURPLUSES ALONE TELL YOU ANYTHING ABOUT AN ECONOMY'S UNDERLYING HEALTH IN FACT THE GERMAN FORMULA IS A RECIPE FOR STAGNATION GERMAN LABOR PRODUCTIVITY HAS LAGGED FURTHER AND FURTHER BEHIND OURS FOR 15 YEARS AND PRODUCTIVITY IS WHAT ULTIMATELY UNDERWRITES RISING LIVING STANDARDS THE ECONOMIST NOTED A FEW WEEKS BACK THAT THE MITTELSTAND OF SMALL AND MEDIUMSIZED FAMILY BUSINESSES WHICH FORM THE BACKBONE OF GERMAN INDUSTRY HAD THEIR COMPETITIVE EDGE ERODED DURING THE 1980S AND AS WE SAY THESE ARE THE JOB CREATORS IT'S ABOUT TIME THE CLINTONITES CAUGHT UP WITH ECONOMIC EVOLUTION THE GERMANS DIDN'T CALCULATE THEIR WAY INTO THIS MORASS THEY WERE CHASING THE SAME HARES AS THE CLINTON ADMINISTRATION IF YOU WOULD GOVERN WISELY ULTIMATELY YOU NEED A POLITICAL PHILOSOPHY AND MERE AFFECTION FOR ACTIVIST GOVERNMENT ISN'T ONE AS ALWAYS IT'S MAINLY A FAT INVITATION TO THE SPECIAL INTERESTS THAT ARE FOREVER TRYING TO FIGHT OFF COMPETITIVE CHANGE 9304060130 930406 MARKETING & MEDIA PEARSON SAYS PALMER RESIGNED AS THE CHIEF OF FINANCIAL TIMES LONDON THE CHIEF EXECUTIVE OF LONDON'S FINANCIAL TIMES NEWSPAPER RESIGNED BECAUSE OF DIFFERENCES IN MANAGEMENT STYLE ACCORDING TO A STATEMENT BY PEARSON PLC THE FT'S PARENT COMPANY DAVID PALMER 52 YEARS OLD WAS CHIEF EXECUTIVE SINCE 1990 HE WAS SUCCEEDED IMMEDIATELY BY DAVID BELL 46 A FINANCIAL TIMES VETERAN WHO IS ADVERTISING AND MARKETING DIRECTOR I DON'T THINK IT WILL MAKE ANY DIFFERENCE TO THE DIRECTION OF THE PAPER MANAGING EDITOR DAVID WALKER SAID IN A TELEPHONE INTERVIEW THE MESSAGE IS CONTINUITY HE WOULDN'T ELABORATE ON THE DIFFERENCES IN MANAGEMENT STYLE AND A PEARSON SPOKESMAN WAS UNAVAILABLE FOR COMMENT IN WHAT MR WALKER SAID WAS AN UNRELATED MOVE PEARSON ALSO ANNOUNCED THAT FRANK BARLOW A FORMER CHIEF EXECUTIVE AT THE NEWSPAPER HAS BEEN NAMED CHAIRMAN OF THE FINANCIAL TIMES GROUP SUCCEEDING LORD BLAKENHAM THE DEPARTURE OF MR PALMER CAPS A TUMULTUOUS FORTNIGHT AT THE BRITISH FINANCIAL NEWSPAPER LAST WEEK RICHARD MCCLEAN A LONGSERVING DEPUTY CHIEF EXECUTIVE OF THE FT QUIT TO TAKE A SENIOR POST AT THE INTERNATIONAL HERALD TRIBUNE IN PARIS APPARENTLY BECAUSE OF A CLASH WITH MR PALMER AT LEAST ONE STAFFER THINKS THIS PAVED THE WAY FOR YESTERDAY'S ANNOUNCEMENT LAST WEEK PEARSON WHOSE INDUSTRIAL HOLDINGS RANGE FROM OIL SERVICES TO MADAME TUSSAUD'S WAX MUSEUM REPORTED THAT PRETAX PROFIT FELL 16 IN 1992 DESPITE A STRONG PERFORMANCE BY SUCH MEDIA HOLDINGS AS THE FT 9304060129 930406 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 COMERICA BANK 100 MILLION ISSUE OF BANK NOTES DUE APRIL 13 1994 PRICED AT PAR TO YIELD 340 INITIALLY ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH JP MORGAN SECURITIES INC THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 013 PERCENTAGE POINT ABOVE THE TREASURY ONEYEAR BILL THE OFFERING IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP DELIVERY IS SCHEDULED FOR APRIL 13 FLAT COMERICA BANK IS A UNIT OF COMERICA INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY FIRST BOSTON THE OFFERING SERIES 1993G21 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 750 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 155 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS THE ISSUE SETTLES MAY 28 FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES G009 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATIONBACKED FREDDIE MAC MACS MODIFIABLE AND COMBINABLE SECURITIES WHICH ARE IN TURN BACKED BY GINNIE MAE 950 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 500 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 265 YEARS THE ISSUE SETTLES MAY 28 FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY BEAR STEARNS THE OFFERING SERIES GOLD 1515 IS BACKED BY FREDDIE MAC'S 15YEAR 650 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 175 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS THE ISSUE SETTLES MAY 28 FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY PAINEWEBBER THE OFFERING 199366 IS BACKED BY STRIPPED MORTGAGE BACKED SECURITIES TRUST 218 SYNTHETIC 70 CLASS SMBS 218 COLLATERAL IS 75 30YEAR MORTGAGEBACKED SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 225 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 296 YEARS THE ISSUE SETTLES MAY 28 FEDERAL NATIONAL MORTGAGE ASSOCIATION 2601 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY PRUDENTIAL SECURITIES THE OFFERING SERIES 199365 IS BACKED BY 20YEAR 7 MORTGAGEBACKED SECURITIES CERTIFICATES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 200 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1983 YEARS THE ISSUE SETTLES JUNE 30 1993 FEDERAL REALTY INVESTMENT TRUST OFFERING OF 25 MILLION COMMON SHARES PRICED AT 28 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MEDIA VISION TECHNOLOGY INC OFFERING OF 175 MILLIONS SHARES PRICES AT 2625 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES BAYERISCHE LANDESBANK GIROZENTRALE GERMANY 100 MILLION OF SUBORDINATED COLLARED FLOATING RATE EURONOTES DUE MAY 2003 AT ISSUE PRICE 9975 VIA UBS LTD INTEREST FLOATS AT 25 POINT BELOW THE LONDON INTERBANK OFFERED RATE SUBJECT TO A 5 MINIMUM COUPON MAXIMUM 8 FEES 50 SOLVAY SA BELGIUM ONE BILLION FRANCS OF 79 EUROBONDS DUE APRIL 30 1998 AT ISSUE PRICE 101375 VIA CREDIT COMMERCIAL DE FRANCE REOFFERED AT 9980 TO YIELD 795 ANNUAL SPREAD 85 BASIS POINTS ABOVE THE 950 FRENCH TREASURY DUE 1998 FEES 1875 TOSTEM CORP JAPAN 10 BILLION YEN OF FIXED/FLOATING RATE EUROBONDS DUE JULY 29 1997 AT ISSUE PRICE 101325 VIA SAKURA FINANCE INTERNATIONAL LTD REOFFERED AT PAR INTEREST PAID ANNUALLY AT 425 FOR FIRST THREE YEARS AND THREE MONTHS THEN FLOATING AT 125 POINT BELOW THREEMONTH LIBOR FOR THE FINAL YEAR PUT ON JULY 29 1996 AT PAR FEES 1625 9304060128 930406 PEPPERAND SALT WHAT MOST ART LOOKS LIKE TODAY WITH NOM DE LASER JET ROMANTIC RECONCILIATION REVIVAL MATING 9304060127 930406 INTERNATIONAL PIRELLI GROUP SELLS ITS 334 STAKE IN CONTINENTAL AG SPECIAL TO THE WALL STREET JOURNAL MILAN IN A WELCOME EPILOGUE TO ONE OF THE MOST BITTER TAKEOVER BATTLES OF RECENT EUROPEAN CORPORATE HISTORY TIRE AND CABLE MAKER PIRELLI SPA SOLD ITS STAKE IN CONTINENTAL AG OF GERMANY FOR 330 BILLION LIRE 208 MILLION REAPING A CAPITAL GAIN OF 140 BILLION LIRE SATISFACTION WAS EXPRESSED ON BOTH SIDES AS PIRELLI AND ITS ALLIES SOLD THEIR 334 STAKE TO A GROUP OF GERMAN INVESTORS FOR A 21 PREMIUM OVER CONTINENTAL'S CLOSING PRICE FRIDAY ON THE FRANKFURT STOCK EXCHANGE OF 207 MARKS 12929 CONTINENTAL CHAIRMAN HUBERTUS VON GRUENBERG SAID THE COMPANY HAD WON BACK FULL FREEDOM OF ACTION AND WILL USE IT IN THE BEST INTERESTS OF THE GROUP AND ITS CUSTOMERS SHAREHOLDERS AND WORKERS PIRELLI SAID THE PIRELLICONTINENTAL SAGA HAD A GOOD ENDING BECAUSE IT PRODUCED A CASH INFLOW AND A CAPITAL GAIN FOR PIRELLI A CONSIDERABLE PROFIT FOR ITS ALLIES AND THE CONDITIONS FOR THE TWO TIRE MAKERS TO GO THEIR INDEPENDENT WAYS WITH ITS TAKEOVER BID FOR CONTINENTAL ANNOUNCED IN SEPTEMBER 1990 PIRELLI HAD HOPED TO COMBINE THE WORLD'S FOURTH AND FIFTHLARGEST TIRE MAKERS AND BENEFIT FROM ADDITIONAL ECONOMIES OF SCALE AND COMPLEMENTARY STRENGTHS IN DIFFERENT MARKET SEGMENTS BUT FIERCE RESISTANCE FROM CONTINENTAL MEANT A 15MONTH BOARDROOM AND COURTROOM BATTLE UNTIL PIRELLI ANNOUNCED IT WOULD SURRENDER THE FIGHT PIRELLI'S GROUP LOSSES IN 1991 TOTALED 690 BILLION LIRE ABOUT HALF OF WHICH WERE ATTRIBUTED TO THE CONTINENTAL BATTLE 9304060126 930406 LESLIE FAY HOBBLED BY LENDERS' CURBS ON WORKING CAPITAL FILES FOR CHAPTER 11 BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HOBBLED BY LENDERS' CONSTRAINTS ON ITS WORKING CAPITAL IN THE WAKE OF AN INTERNAL ACCOUNTING SCANDAL LESLIE FAY COS FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN A MANHATTAN FEDERAL COURT SINCE THE BIG DRESSMAKER DISCLOSED LAST FEBRUARY THAT THE ACCOUNTING SCANDAL WOULD REQUIRE A RESTATEMENT OF ITS 1992 AND 1991 EARNINGS LESLIE FAY HAS COME UNDER INCREASING PRESSURE FROM ITS BANK LENDERS THAT PRESSURE INTENSIFIED IN RECENT WEEKS AS NEGATIVE NEWS DOGGED LESLIE FAY AS PREVIOUSLY REPORTED THE COMPANY PROJECTED 1992 LOSSES OF 137 MILLION IT REPLACED ITS CHIEF FINANCIAL OFFICER AND ANNOUNCED IT IS CLOSING CERTAIN APPAREL DIVISIONS IN RESPONSE LESLIE FAY'S LENDERS HAVE TIGHTENED THE FLOW OF WORKING CAPITAL TO THE COMPANY THUS HAMPERING ITS DEALINGS WITH SUPPLIERS IN THE LAST 10 DAYS THE PRESSURE FROM THE BANKS HAS BEEN MOUNTING AND IT HAS BEEN DIFFICULT IN TERMS OF GETTING DOMESTIC PIECE GOODS SAID MICHAEL BABCOCK LESLIE FAY'S CHIEF OPERATING OFFICER IN AN INTERVIEW HE SAID THAT CHAPTER 11 PROTECTION WOULD ENABLE LESLIE FAY TO FILL ORDERS FOR ITS CRITICAL FALL SEASON ON SCHEDULE HE SAID THAT LESLIE FAY DIRECTORS WEIGHED THE DECISION AT MEETINGS HELD FRIDAY SUNDAY AND YESTERDAY MORNING LESLIE FAY ALSO SAID IT HAS LINED UP A COMMITMENT FROM CITICORP'S CITIBANK UNIT FOR 100 MILLION IN DEBTORINPOSSESSION FINANCING FOR ONE YEAR THE COMPANY SAID THAT IT RECEIVED YESTERDAY COURT APPROVAL FOR 50 MILLION OF THE FINANCING TO MEET ITS CURRENT WORKING CAPITAL NEEDS AND TO CONTINUE THE FLOW OF MERCHANDISE TO ITS CUSTOMERS WITHOUT DELAY OR INTERRUPTION YESTERDAY LESLIE FAY TOOK PAINS TO NOTE THAT ITS BANKRUPTCYLAW PETITION IS ATYPICAL BECAUSE THE COMPANY ISN'T SADDLED WITH DEBT AS OF JAN 2 1993 THE COMPANY SAID IT HAD UNAUDITED CONSOLIDATED ASSETS OF ABOUT 440 MILLION AS OF YESTERDAY IT HAD A TOTAL OF 270 MILLION IN LIABILITIES AND ABOUT 60 MILLION OF UNREIMBURSED LETTERS OF CREDIT AT THE TIME OF THE FILING NONE OF LESLIE FAY'S DEBTHOLDERS WERE SECURED THE COMPANY SAID LESLIE FAY'S LARGEST CREDITORS AS LISTED IN THE BANKRUPTCYLAW FILING ARE AS FOLLOWS THE COMPANY'S BANK LENDERS AS A GROUP LED BY CHEMICAL BANK WHICH HAVE TOTAL EXPOSURE OF 230 MILLION IN DIRECT BORROWINGS AND OUTSTANDING LETTERS OF CREDIT OTHER CREDITORS ARE PRUDENTIAL INSURANCE CO OF AMERICA AND NORTHWESTERN MUTUAL LIFE INSURANCE CO WHO ARE HOLDERS OF TWO SERIES OF NOTES TOTALING 75 MILLION AND LESLIE FAY'S TRADE SUPPLIERS AND FACTORING COMPANIES WHICH ARE OWED ABOUT 25 MILLION UNLIKE MANY OTHER CHAPTER 11 SITUATIONS LESLIE FAY'S BUSINESS IS FUNDAMENTALLY SOUND MR BABCOCK SAID HE NOTED THAT THE BOOKINGS FOR THE COMPANY'S PRODUCT LINES ARE HIGHER THAN A YEAR AGO AND AT BETTER PROFIT MARGINS LESLIE FAY'S RECENTLY INITIATED RESTRUCTURING PLAN HE ADDED INCLUDES TIGHTER FINANCIAL CONTROLS ELIMINATION OF UNPROFITABLE PRODUCT LINES AND MORE EFFICIENT ADMINISTRATIVE AND MANUFACTURING PROCESSES LESLIE FAY ALSO ANNOUNCED THAT ITS BOARD HAD ADOPTED A SOCALLED SHAREHOLDER RIGHTS PLAN WHICH KICKS IN AFTER ANY ONE PARTY ACCUMULATES 15 OF THE SHARES OUTSTANDING UNDER THIS PLAN TO THWART UNFRIENDLY TAKEOVERS HOLDERS WILL HAVE THE RIGHT TO RECEIVE 1 1/2 SHARES FOR EACH SHARE OF COMMON STOCK HELD LESLIE FAY HAS ABOUT 192 MILLION COMMON SHARES OUTSTANDING ITS CHAIRMAN AND CHIEF EXECUTIVE JOHN POMERANTZ IS THE COMPANY'S LARGEST SHAREHOLDER MR POMERANTZ AND HIS WIFE OWN ABOUT 87 OF LESLIE FAY'S STOCK THE OBJECTIVE HERE IS TO GIVE MANAGEMENT IN THE COMPANY TIME TO RESTRUCTURE THE BUSINESS AND TO MAKE SURE THAT WE CAN MAXIMIZE SHAREHOLDER VALUE FOR THE BUSINESS MR BABCOCK SAID FOLLOWING THE ANNOUNCEMENT ABOUT ITS BANKRUPTCY FILING LESLIE FAY SHARES DELAYED OPENING YESTERDAY AND DIDN'T BEGIN TRADING ON THE NEW YORK STOCK EXCHANGE UNTIL 250 PM EDT IN COMPOSITE TRADING THE SHARES CLOSED AT 3 A SHARE DOWN 225 THE BIG BOARD CONTACTED LESLIE FAY OFFICIALS YESTERDAY TO TELL THEM ABOUT ITS PLANNED REVIEW OF THE COMPANY'S STOCK LISTING AS A MATTER OF COURSE ACCORDING TO HERMAN GORDON LESLIE FAY SENIOR VICE PRESIDENT AND GENERAL COUNSEL IN VIEW OF OUR NET WORTH WE WERE TOLD THAT WE CONTINUE TO MEET THE LISTING REQUIREMENT MR GORDON SAID AS SPECULATION MOUNTED ABOUT THE FATE OF MR POMERANTZ AND WHETHER HE WOULD SURVIVE AT THE HELM OF THE COMPANY HIS FATHER FOUNDED IN 1947 MR BABCOCK INSISTED THAT THE COMPANY'S DIRECTORS ARE 1000 BEHIND JOHN POMERANTZ HE SAID THAT THERE HAS BEEN AND WILL BE NO PRESSURE ON JOHN POMERANTZ TO STEP DOWN OR STEP ASIDE NOR HAS THERE BEEN ANY DISCUSSION OF THIS AT ANY BOARD MEETING SINCE WE FIRST HEARD ABOUT THE ACCOUNTING IRREGULARITIES THOSE IRREGULARITIES APPARENTLY INVOLVING INFLATED INVENTORIES AND PROFITS ARE STILL UNDER INVESTIGATION BY THE ACCOUNTING FIRM ARTHUR ANDERSEN & CO AND THE NEW YORK LAW FIRM OF WEIL GOTSCHAL & MANGES IN A STATEMENT ISSUED YESTERDAY MR POMERANTZ EXPRESSED REGRET ABOUT THE CHAPTER 11 FILING BUT SAID IT WOULD ENABLE US TO CONTINUE TO OPERATE OUR BUSINESSES AND TO PROTECT THIS COMPANY'S VALUABLE FRANCHISE AND VERY SIGNIFICANT ASSETS ANALYSTS SAID THAT LESLIE FAY'S CHAPTER 11 FILING RELIEVES CREDITORS' CONCERNS THAT THEY CAN RECOVER THEIR CLAIMS BUT STILL DOESN'T ADDRESS THE ULTIMATE FATE OF THE COMPANY THE MORE IMPORTANT QUESTION FOR A CREDITOR IS THE OPERATING PERFORMANCE OF THE COMPANY AND THE VALUE OF THE BUSINESS AS A GOING CONCERN AND WE HAVE TO WAIT FOR ADJUSTED NUMBERS TO BE ABLE TO DRAW ANY CONCLUSIONS SAID JACK HERSCH DIRECTOR OF RESEARCH FOR MJ WHITMAN LP A BROKER/DEALER SPECIALIZING IN THE SECURITIES AND BANK DEBT OF DISTRESSED COMPANIES IF MR POMERANTZ PROVES NOT TO BE DIRECTLY IMPLICATED IN THE FRAUD HE MAY BE ABLE TO HANG ONTO HIS JOB MR HERSCH SAID ADDING UNLESS HE IS GUILTY IF POMERANTZ IS THE ONE WHO CREATES THE BEST VALUE FOR THE COMPANY THE CREDITORS WILL WANT TO KEEP HIM IN THE SADDLE WITH THE AUDIT AND INVESTIGATION STILL UNRESOLVED AND A NUMBER OF SHAREHOLDER SUITS PENDING MR HERSCH NOTED ANY DISCUSSION OF A QUICK RESOLUTION OF THE BANKRUPTCY IS PREMATURE YOU WILL HAVE QUESTIONS ABOUT MANAGEMENT CREDIBILITY AND YOU HAVE TO DEFINE THE UNDERLYING VALUE OF THE BUSINESS TO THE SATISFACTION OF THE CREDITORS DEBORAH BRONSTON WHO FOLLOWS THE APPAREL INDUSTRY FOR PRUDENTIAL SECURITIES DROPPED COVERAGE OF LESLIE FAY YESTERDAY MS BRONSTON SAYS THAT SHE DOESN'T HAVE A BASIS FOR DETERMINING LESLIE FAY'S FUTURE PROFIT POTENTIAL OR ITS BOOK VALUE MS BRONSTON SAID THAT LESLIE FAY ISN'T DISCLOSING SUFFICIENT INFORMATION ABOUT ITS BUSINESS AND THE COSTS THAT IT IS INCURRING NOW THE LIKELIHOOD OF THEIR TURNING AROUND THIS COMPANY ANYTIME SOON IS LOW SHE ADDED 9304060125 930406 BUSINESS BRIEF CHRYSLER SAYS CHARGE WILL RESULT IN LOSS FOR 1ST QUARTER YEAR HIGHLAND PARK MICH CHRYSLER CORP SAID A ONETIME 47 BILLION CHARGE RELATED TO RETIREE BENEFITS WILL RESULT IN A LOSS FOR THE FIRST QUARTER AND ENTIRE YEAR CHRYSLER WAS EXPECTED TO TAKE THE NONCASH CHARGE AGAINST ITS FIRSTQUARTER EARNINGS BEFORE TAXES THE CHARGE AMOUNTS TO 75 BILLION CHRYSLER SAID GENERAL MOTORS CORP AND FORD MOTOR CO TOOK BIG HITS AGAINST THEIR FOURTHQUARTER RESULTS WHICH CONTRIBUTED TO HUGE LOSSES IN 1992 IN THE FIRST QUARTER OF 1992 CHRYSLER POSTED A LOSS OF 13 MILLION OR SEVEN CENTS A SHARE FOR ALL OF 1992 THE AUTO MAKER EARNED 723 MILLION OR 221 A SHARE CHRYSLER SAID ITS ONGOING ANNUAL EXPENSE FOR POSTRETIREMENT HEALTH AND LIFE INSURANCE BENEFITS WILL INCREASE AFTER THE ONETIME CHARGE BY 240 MILLION AFTER TAXES ANTICIPATING THAT THE CHARGE WILL PUSH CHRYSLER INTO THE RED THIS YEAR THE NO 3 AUTO MAKER IS ASKING SHAREHOLDERS TO APPROVE A CHANGE IN THE WAY EXECUTIVE BONUSES ARE CALCULATED SO THAT BONUSES WOULD BE BASED ON NET EARNINGS BEFORE THE ACCOUNTING CHARGE SHAREHOLDERS WILL VOTE ON THE ISSUE AT THE MAY ANNUAL MEETING 9304060124 930406 BUSINESS BRIEF RELIANCE GROUP ACCEPTS SWEETENED BID FOR ITS LIFE INSURANCE UNIT FROM GE NEW YORK RELIANCE GROUP HOLDINGS INC SAID IT AGREED TO SELL ITS UNITED PACIFIC LIFE INSURANCE CO UNIT TO GENERAL ELECTRIC CAPITAL CORP IN A SLIGHTLY SWEETENED BID VALUED AT ABOUT 550 MILLION THE AGREEMENT ALSO CALLS FOR RELIANCE TO BUY ABOUT 570 MILLION OF UNITED PACIFIC'S ASSETS LARGELY MARKETABLE SECURITIES INCLUDING JUNK BONDS AT MARKET VALUE THE COMPANY WOULDN'T BE SPECIFIC ABOUT THE MARKET VALUE OF THE SECURITIES THE DEFINITIVE AGREEMENT AS EXPECTED RESULTED IN RELIANCE REPORTING A FOURTHQUARTER LOSS OF 796 MILLION OR 1 A SHARE THE LOSS INCLUDED A CHARGE OF 100 MILLION RELATED TO THE SALE FOR THE YEAREARLIER QUARTER RELIANCE HAD A NET LOSS OF 10 MILLION OR 14 CENTS A SHARE REVENUE FOR THE QUARTER ROSE TO 7252 MILLION FROM 7169 MILLION BUT THE SALE EXPECTED TO BE COMPLETED IN THE THIRD QUARTER WILL INCREASE THE STATUTORY SURPLUS OF RELIANCE INSURANCE CO UNITED PACIFIC'S DIRECT PARENT BY 61 MILLION FROM 8576 MILLION AT YEAR'S END AS REPORTED RELIANCE LAST WEEK TURNED DOWN A 525 MILLION OFFER FROM A SUITOR IT DIDN'T IDENTIFY AND SAID IT WAS NEGOTIATING WITH ANOTHER POTENTIAL BUYER IT SAID THE FIRST SUITOR WHO SOURCES IDENTIFIED AS GE CAPITAL HAD SUED AFTER BEING TURNED DOWN YESTERDAY RELIANCE SAID THAT SUIT WAS DROPPED AS PART OF THE AGREEMENT GE CAPITAL IS THE BIG FINANCIAL SERVICES UNIT OF GENERAL ELECTRIC CO FAIRFIELD CONN THE SALE OF UNITED PACIFIC IS PART OF RELIANCE'S STRATEGY TO STRENGTHEN ITS PROPERTY AND CASUALTY BUSINESS UNITED PACIFIC WITH 1992 ASSETS OF ABOUT 62 BILLION AND REVENUE OF 6803 MILLION IS RELIANCE'S ONLY LIFE INSURANCE UNIT YESTERDAY MOODY'S INVESTORS SERVICE INC SAID IT WOULD CONSIDER RAISING THE RATINGS OF UNITED PACIFIC'S CLAIMSPAYING ABILITY IN LIGHT OF THE AGREEMENT RELIANCE WITH PROPERTY AND CASUALTY AND TITLE INSURANCE OPERATIONS SAID ITS LOSS FROM CONTINUING OPERATIONS WIDENED IN THE QUARTER TO 247 MILLION OR 31 CENTS A SHARE FROM 221 MILLION OR 30 CENTS IT SAID 1992 RESULTS WERE BELOW EXPECTATIONS BECAUSE OF THE RECORD LEVEL OF CATASTROPHE LOSSES IN THE PROPERTY AND CASUALTY BUSINESS AND GENERALLY WEAK PRICING IN MANY OF ITS STANDARD COMMERCIAL LINES GE CAPITAL A STAMFORD CONN FINANCIAL SERVICES COMPANY SAID THE UNITED PACIFIC ACQUISITION WOULD SIGNIFICANTLY BUILD OUR ANNUITY BUSINESS 9304060123 930406 LAW RACKETEERING LAWSUIT CHARGES INVESTORS CONSPIRED TO LOOT SAUDI EUROPEAN BANK BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A CIVIL RACKETEERING LAWSUIT WAS FILED IN FEDERAL COURT IN MANHATTAN ALLEGING A HUGE CONSPIRACY BY A GROUP OF PRIMARILY ARAB AND FRENCH INVESTORS TO LOOT THE NOW DEFUNCT SAUDI EUROPEAN BANK THE LAWSUIT NAMES NUMEROUS DEFENDANTS INCLUDING FELLOW SHAREHOLDERS IN THE BANK AMONG THEM SOME OF THE MOST PROMINENT SAUDI AND BAHRAINI BUSINESS FAMILIES VARIOUS INTERESTS OF FRANCE'S BOUYGUES FAMILY WHICH BOUGHT THE SHARES OF SAUDI EUROPEAN BANK IN 1989 AND RENAMED IT SOCIETE DE BANQUE PRIVEE ALSO ARE DEFENDANTS THE BOUYGUES FAMILY CONTROLS BOUYGUES SA A LARGE INTERNATIONAL CONSTRUCTION COMPANY IF THE ALLEGATIONS IN THE LAWSUIT ARE TRUE IT WOULD PROVIDE A MISSING LINK BETWEEN SOME OF THE LARGEST BANKING SCANDALS OF THE PAST DECADE AMONG THEM THE ALLEGED LOOTING OF BCCI HOLDINGS LUXEMBOURG SA AND LINCOLN SAVINGS & LOAN A FAILED THRIFT OWNED BY AMERICAN CONTINENTAL CORP THAT HAD FINANCIAL LINKS TO SAUDI EUROPEAN BANK ESSENTIALLY THE LAWSUIT FILED UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATION LAW PAINTS A PICTURE OF AN INTERNATIONAL BANKLOOTING GROUP THAT GAINED INTERESTS IN NUMEROUS BANKS AND FINANCIAL INSTITUTIONS THE LAWSUIT ALLEGES THAT THE ARAB FAMILIES AND THEIR COHORTS IN THE US AND EUROPE USED FALSE PROMISES OF FINANCING TO GAIN A TOEHOLD IN VARIOUS BANKS ONCE INSIDE THE BANKS THE CONSPIRATORS WOULD BREAK THEIR PROMISES AND EXERT CONTROL OVER THE BANK USING ITS FUNDS FOR THEIR OWN PERSONAL PURPOSES THE SUIT ALSO SAYS THAT DEFENDENTS HOLD INTERESTS IN VARIOUS US BANKS SUCH AS CHEMICAL BANKING CORP MARINE MIDLAND BANKS INC AND CONTINENTAL BANK CORP BUT MAKES NO ALLEGATIONS THAT THE GROUP EXERTS CONTROL OVER THOSE INSTITUTIONS MOST OF THE DEFENDANTS LIVE OUTSIDE THE US AND COULD NOT BE REACHED FOR COMMENT BUT SOME OF THOSE DEFENDANTS ARE KNOWN TO BE PREPARING THEIR OWN LAWSUITS RELATED TO SAUDI EUROPEAN BANK ACCORDING TO ONE PERSON ASSISTING IN THE PREPARATION OF THOSE SUITS WHO SPOKE ON CONDITION OF ANONYMITY THE LAWSUIT WHICH SEEKS AT LEAST 50 MILLION IN DAMAGES ALLEGES BUT DOESN'T EXPLAIN HOW CONSPIRATORS USED EXTORTION TO GET OTHER SHAREHOLDERS IN THE BANK HOLDING COMPANY AND VARIOUS ARAB RULING FAMILIES TO DO THEIR BIDDING IT ALSO DOESN'T MAKE CLEAR WHY THE OTHER SHAREHOLDERS IN THE BANK ALLOWED THE CONSPIRATORS TO GAIN THEIR ALLEGED CONTROL AND WHY IF THEY WERE AWARE OF THE LOOTING NOTHING WAS DONE TO STOP IT THE LAWSUIT WAS FILED IN NEW YORK BECAUSE MANY OF THE FINANCIAL TRANSACTIONS AT ISSUE IN THE CASE TOOK PLACE THERE THE ALLEGATIONS IN THE LAWSUIT ARE SIMILIAR TO ARGUMENTS THAT JAMAL RADWAN THE FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SAUDI EUROPEAN BANK HAS BEEN MAKING IN RECENT MEETINGS WITH LAW ENFORCEMENT OFFICIALS IN THE US AN INDIVIDUAL FAMILIAR WITH THE CASE SAID SO FAR NO CRIMINAL ACTION HAS BEEN TAKEN ON MR RADWAN'S ALLEGATIONS MR RADWAN WAS PREVIOUSLY SUED IN ANOTHER MATTER BY SOME OF THE DEFENDANTS IN THIS CASE HE IS A DRIVING FORCE BEHIND THE FILING OF THE RICO LAWSUIT THE INDIVIDUAL FAMILIAR WITH THE CASE SAID THE LAWSUIT WAS PREPARED BY THOMAS PUCCIO A NEW YORK ATTORNEY WHO WAS THE FEDERAL PROSECUTOR IN THE GOVERNMENT'S ABSCAM STING OPERATION OF THE LATE 1970S MR PUCCIO WHO REPRESENTS ALL THE PLAINTIFFS IN THE LAWSUIT DECLINED TO ELABORATE ON THE ALLEGATIONS IN THE COMPLAINT 9304060122 930406 TECHNOLOGY & SCIENCE INTEL MICROSOFT GENERAL INSTRUMENT MULL CABLE PROJECT A WALL STREET JOURNAL NEWS ROUNDUP MICROSOFT CORP INTEL CORP AND GENERAL INSTRUMENT CORP ARE IN DISCUSSIONS ABOUT MAKING A CABLE CONVERTER BOX WITH PERSONAL COMPUTING POWER NEWS OF THE TALKS HELPED BOOST THE STOCK PRICES OF THE COMPANIES WITH GENERAL INSTRUMENT CLIMBING MORE THAN 13 VIEWERS COULD CUSTOMIZE THEIR TELEVISION WATCHING GET VIDEO ON DEMAND AND USE DATABASES FOR RESEARCH GENERAL INSTRUMENT A UNIT OF FORSTMANN LITTLE & CO PLANS TO SHOW THE TECHNOLOGY AT THE NATIONAL ASSOCIATION OF BROADCASTERS CONVENTION IN LAS VEGAS LATER THIS MONTH THE TECHNOLOGY TALKS FIRST REPORTED IN THE NEW YORK TIMES ARE THE LATEST IN VARIOUS EFFORTS TO BOOST TELEVISION'S CAPABILITIES IN ANTICIPATION OF THE TIME WHEN CONSUMERS WILL HAVE ACCESS TO HUNDREDS OF CHANNELS AND PRESUMABLY WILL WANT A MOREINTELLIGENT WAY TO ACCESS THOSE CHANNELS THAN ZAPPING WITH A REMOTE CONTROL IN ADDITION TO MICROSOFT IT IS BELIEVED THAT SEVERAL OTHER COMPANIES SUCH AS APPLE COMPUTER INC ARE DEVISING SOFTWARE AND DEVICES FOR PROCESSING INFORMATION SENT VIA TELEVISION THE MARKET COULD BE VERY LARGE GIVEN THE NUMBER OF SERVICES AND SOFTWARE THAT COULD BE DELIVERED SAID INDUSTRY ANALYST BETTY LYTER OF MONTGOMERY SECURITIES IN SAN FRANCISCO YOU COULD HAVE A DEDICATED CHANNEL THAT BEAMS SESAME STREET' 24 HOURS A DAY SHE ADDED YOU COULD HAVE A DEDICATED STATION THAT WOULD TEACH YOU HOW TO PLAY GOLF THE UPSIDE IS UNLIMITED THE DEVICE WOULD ALLOW MOVIE WATCHERS TO SELECT A SYMBOL FOR MOVIES CLICK A MOUSE DEVICE PULL UP A LIST OF MOVIE TITLES AND START THE MOVIE FOR HOME SHOPPING A VIEWER COULD CLICK ON A SYMBOL FOR ATHLETIC SHOES OPEN A CATALOG CLICK ON THE DESIRED PRODUCT AND PLACE AN ORDER THE THREE COMPANIES ARE IN DISCUSSIONS BUT THERE'S NOTHING TO ANNOUNCE AT THIS TIME SAID A SPOKESMAN FOR INTEL A SANTA CLARA CALIF CHIP MAKER THAT IS SAID TO BE SUPPLYING THE MICROPROCESSORS FOR SUCH A PRODUCT MICROSOFT OF REDMOND WASH AND GENERAL INSTRUMENT A CHICAGO MAKER OF CABLE AND SATELLITE TELEVISION EQUIPMENT ALSO DECLINED COMMENT STILL ANOTHER TEAM JOCKEYING FOR POSITION IN THE FIELD OF INTERACTIVE TV PREDICTS MONTGOMERY SECURITIES' MS LYTER IS THE ALLIANCE BETWEEN SILICON VALLEY STARTUP 3DO WITH TIME WARNER INC AMERICAN TELEPHONE & TELEGRAPH CO ELECTRONIC ARTS INC AND MATSUSHITA ELECTRIC INDUSTRIAL CO OF JAPAN THEY'RE CREATING A NEXTGENERATION VIDEO GAME SYSTEM AND HOME COMPUTER APPLIANCE WITH SUPERIOR GRAPHICS AND SOUND SHE SAID OVER TIME THEY SEE THEMSELVES AS A DEVICE ON TOP OF TV SETS ACCEPTING A CABLE FEED TO DO INTERACTIVE TV AND VIDEO ON DEMAND IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GENERAL INSTRUMENT CLOSED AT 29125 UP 3375 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY INTEL CLOSED AT 110125 UP 2625 AND MICROSOFT CLOSED AT 9150 UP 175 9304060121 930406 HEARD ON THE STREET FADING BRANDNAME LOYALTY MIGHT SWAY INVESTORS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IS BRAND LOYALTY DEAD NEARLY SAY A CROWD OF STOCK INVESTORS SOME OF THE BESTKNOWN NAMES IN FOOD AND CONSUMER PRODUCTS TOOK A POUNDING YESTERDAY AS STOCK INVESTORS ENVISIONED THE END OF THE ROAD FOR THE COMPANIES' 1980S PRICE BOOSTS AND ONCEUNSHAKABLE PURCHASER LOYALTY YESTERDAY'S CASUALTY LIST READ LIKE A WHO'S WHO OF FAMOUS BRANDS CAMPBELL SOUP SHED 1 1/8 TO 42 1/2 DOLE FOOD DECLINED 1 TO 34 1/8 HERSHEY SANK 1 1/8 TO 51 7/8 HJ HEINZ FELL 1 1/8 TO 37 3/4 BRANDNAME BEHEMOTH PROCTER & GAMBLE LOST 1 1/4 TO 48 5/8 COLGATEPALMOLIVE TUMBLED 2 5/8 TO 62 1/8 AFTER GOLDMAN SACHS'S JACK SALZMAN SAID HE BELIEVES THE COMPANY'S US OPERATIONS WILL POST SLOWER FIRSTQUARTER UNIT GROWTH STOCK INVESTORS TOOK THEIR CUE FROM PHILIP MORRIS'S PRICECUTTING DEFENSE OF ITS MARLBORO CIGARETTE BRAND FRIDAY IF CONSUMERS ARE REACHING FOR CHEAPER GENERIC CIGARETTES THE THEORY WENT WHAT'S TO STOP THEM FROM CHOOSING GENERIC OR STOREBRAND TOOTHPASTE BREAKFAST CEREAL CANNED TOMATOES OR BLEACH WHEN YOU ARE TALKING PRICE BRAND LOYALTY GOES OUT THE WINDOW SAYS RONALD SLOAN HEAD OF VERISSIMO RESEARCH A LARKSPUR CALIF INVESTMENT FIRM YESTERDAY'S SELLING WAS INDISCRIMINATE HEAVY AND WORLDWIDE WITH MANY FOOD STOCKS TAKING A BEATING IN INTERNATIONAL MARKETS IT WAS YET ANOTHER RUDE DEFROCKING OF A ONCE HIGHLY FAVORED GROWTH STOCK GROUP BROADLY OWNED BY INVESTORS SINCE THE 1980S THE WHOLE IDEA IS THAT BRANDED PRODUCTS HAVE LOST PRICING POWER AND THESE COMPANIES ARE GOING TO START CUTTING PRICES TO RECAPTURE MARKET SHARE SAYS STEVEN VANNELLI PORTFOLIO MANAGER AT KJMM INVESTMENT MANAGEMENT IN SAN FRANCISCO HE ADDS I DON'T THINK I BUY THE ARGUMENT COMPLETELY NOT MANY FEEL SORRY FOR THE FOOD AND CONSUMER BRAND STOCKS THROUGHOUT THE 1980S THESE ONETIME MODEL GROWTH COMPANIES POSTED ANNUAL EARNINGS GAINS OF 15 OR BETTER BUT THOSE GAINS CAME AT THE COST OF RISING PRICES ON EVERYTHING FROM CORN FLAKES TO CANDY BARS GENERIC FOOD LABELS AND STORE BRANDS EASILY UNDERCUT THE BRAND COMPANIES' PRICES AND PRICING FOR SOME BASIC GOODS GOT SO OUT OF HAND THAT CONSUMERS FLOCKED TO WHOLESALE CLUBS WHERE THEY COULD CAPTURE DISCOUNTS WITHOUT THE HASSLE OF COUPONS OR OTHER PROMOTIONAL ITEMS RETAILERS RECOGNIZING THE TREND ARE PLANNING MORE HOUSE BRANDS GIANT WALMART STORES FOR EXAMPLE PLANS TO EXPAND ITS HOUSE BRANDS TO MANY BASIC GROCERY ITEMS UNDER THE NAME GREAT VALUE FOOD COMPANIES TOOK FIVE YEARS OF PRICING IN TWO OR THREE YEARS AND NOW THEY ARE PAYING FOR IT SAYS JOHN MCMILLIN FOOD ANALYST AT PRUDENTIAL SECURITIES THOSE INCREASES CAME DURING THE FOODCOMPANY TAKEOVER CRAZE IN THE LATE 1980S INSTEAD OF CUTTING COSTS AND WRINGING MORE EFFICIENCIES OUT OF PROCESSING FACTORIES FOOD COMPANY MANAGEMENTS RAISED PRICES TO CONSOLE INVESTORS HE SAYS THERE IS NO DOUBT THE WIND HAS TURNED INTO THE FACE OF THESE CONSUMER COMPANIES MR MCMILLIN SAYS NOW A LOT OF MANAGEMENTS ARE TRYING TO LOWER THEIR COSTS AND REDUCE PRICES BUT IS IT TOO LATE QUESTIONS RAISED BY FOOD STOCK ANALYSTS AND INVESTORS ARE MORE TROUBLING THAN A SIMPLE PRICE WAR BRANDS WITHOUT SOME KIND OF ASSOCIATION WITH QUALITY OR UNIQUENESS SIMPLY WON'T GRAB THE CONSUMER INVESTORS BELIEVE THERE IS INTENSE COMPETITION YOU HAVE FEWER AND FEWER LABELED BRANDED PRODUCTS THAT ARE REALLY DOMINANT SAYS MR VANNELLI OF KJMM YOU CAN'T SAY A BOX OF CORN FLAKES IS PROPRIETARY HE SAYS ANECDOTAL EVIDENCE HE HAS GATHERED FROM GROCERY CHAINS SHOWS PRIVATE LABEL AND GENERIC PURCHASES MAKE UP ABOUT 20 OF THE CONSUMER'S SHOPPING CART TODAY UP FROM ABOUT 12 BEFORE THE RECESSION HIT THE US HE THINKS THE TREND IS AT A NEARTERM PEAK BUT THE LOYALTY TO MANY BRANDS COULD BE GONE FOREVER WHAT MARLBORO FRIDAY' MEANS IS THAT INVESTORS ARE GOING TO HAVE TO REASSESS MUCH MORE CAREFULLY WHAT CONSTITUTES BRAND LOYALTY SAYS LES PUGH FOOD STOCK ANALYST AT SALOMON BROTHERS TODAY SUCCESSFUL BRANDS WILL SHOW A TOTAL COMMITMENT TO INNOVATION BY THE PRODUCER HE SAYS WHAT DOES THAT MEAN IT MAY BE INNOVATION IN TERMS OF AN INDULGENT ICE CREAM WHICH REACHES CERTAIN DIETARY REQUIREMENTS MR SLOAN OF VERISSIMO RESEARCH ADDS WHAT MAKES A GREAT GROWTH COMPANY EVENTUALLY YOU HAVE TO BE ABLE TO MAKE UNIQUE PRODUCTS THAT DRIVE SALES BUT MANY FOOD COMPANIES FIND THEMSELVES IN NOTHING SHORT OF A CRISIS IN THAT REGARD BRAND DEVELOPMENT CAN BURN UP MILLIONS OF DOLLARS IN RESEARCH AND DEVELOPMENT COSTS COMPANIES FIGHTING THE PRICE BATTLE IN THE US ARE STRAPPED FOR THAT MUCHNEEDED EXTRA CASH ONLY AN ELITE WILL FLOURISH PREDICTS MR PUGH HE SUGGESTS THAT INVESTORS TAKE A LOOK AT FOOD COMPANIES WITH EXPANDING SALES ABROAD WHERE BRANDS AREN'T AS MATURE AND PRICE MARGINS CAN BE MAINTAINED TO FUND RESEARCH IN PARTICULAR HE LIKES NESTLE UNILEVER SARA LEE CPC INTERNATIONAL AND KELLOGG THEY HAVE IN COMMON THE ABILITY TO FUND THE PROCESS OF INNOVATION AND BRANDING' FROM A MULTIREGIONAL EARNINGS BASE MEANING THAT THEY REAP MORE OF THEIR EARNINGS THAN MANY OTHER COMPANIES FROM COUNTRIES OUTSIDE THE HOME MARKET MR PUGH SUGGESTS INVESTORS STEER CLEAR OF BORDEN HERSHEY PET INC QUAKER OATS AND RALSTON PURINA WHAT DO THESE COMPANIES HAVE IN COMMON MR PUGH SAYS THE GROUP ON AVERAGE GETS ABOUT 80 OF EARNINGS FROM THE US THE COMPANY THAT REALLY SUFFERS IS THE NO 3 OR 4 IN ANY PRODUCT AREA ANY COMPANY THAT DOESN'T HAVE NO 1 MARKET SHARE SAYS MR VANNELLI THE SAN FRANCISCO INVESTOR NOW STOCK INVESTORS HAVE GOT TO PICK THEIR SHOTS MR VANNELLI SAYS THE MARKET IS IN TOO MUCH TURMOIL TO BUY FOOD AND CONSUMER STOCKS NOW BUT HE WILL BE LOOKING CLOSELY AT SARA LEE AND COLGATE WE THINK THEY HAVE PRICING POWER AND GLOBAL REACH HE SAYS MR MCMILLIN OF PRUDENTIAL SECURITIES CAUTIONS THAT TOUGH ECONOMIC CONDITIONS IN EUROPE AND A STRONG DOLLAR COULD CURB SALES OF INTERNATIONALLY ORIENTED US FOOD COMPANIES BUT HE CONCLUDES IF WE ARE GOING TO GET OUT OF THIS RATHOLE IT WILL BE EVENTUALLY INTERNATIONAL MARKETS THAT DO IT CAUTION FLAG DAVID BOSTIAN STRATEGIST AT HERZOG HEINE GEDULD HAS TURNED CAUTIOUS RECOMMENDING THAT INVESTORS PUT 30 OF THEIR MONEY IN CASH AND 10 IN GOLD THE IDEA IS TO GUARD AGAINST WHAT MR BOSTIAN THINKS WILL BE A STIFF MARKET SETBACK SOME TIME IN THE NEXT FEW MONTHS CASH INVESTMENTS SUCH AS TREASURY BILLS OR MONEY FUNDS COULD BE A HAVEN ALTHOUGH MANY INVESTORS CURRENTLY SCORN THEM BECAUSE OF THEIR LOW YIELDS MR BOSTIAN THINKS THE DOW JONES INDUSTRIAL AVERAGE WILL FALL ABOUT 10 AND SMALL STOCKS WILL TUMBLE MORE AMONG THE THINGS HE FIGURES COULD RATTLE THE MARKET ARE INFLATION SCARES TURMOIL IN RUSSIA INTRODUCTION OF THE CLINTON HEALTH PLAN AND AN UPWARD CREEP IN SHORTTERM INTEREST RATES ALL ON TOP OF HIGH STOCK VALUATIONS HIS NEW ALLOCATION CALLS FOR ONLY 35 STOCKS AND 25 BONDS DOWN FIVE PERCENTAGE POINTS IN EACH CASE FROM THE PRIOR RECOMMENDED LEVEL 9304060119 930406 POLITICS & POLICY WHITE HOUSE SCRAMBLES TO DEFUSE FLAP OVER A CLINTON REMARK ABOUT JAPAN BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RUSSIANUS RELATIONS WARMED AT THE WEEKEND SUMMIT IN VANCOUVER BUT THE JAPANESE WERE LEFT BRISTLING WHEN THE JOURNAL WAS FOUND BY A VANCOUVER TELEVISION REPORTER AND MADE PUBLIC THE WHITE HOUSE QUICKLY MOVED TO QUASH ANY POTENTIAL DIPLOMATIC FLAP AT A TIME WHEN IT IS LOBBYING JAPAN TO GIVE AID TO RUSSIA MINISTERS FROM THE GROUP OF SEVEN INDUSTRIAL NATIONS ARE SCHEDULED TO MEET LATER THIS MONTH IN TOKYO TO DEVELOP AN AID PACKAGE FOR RUSSIA THE JAPANESE REACTION TO THE QUOTE WAS SPLIT IN TOKYO A GOVERNMENT SPOKESMAN DISMISSED THE ASSERTION THAT THE JAPANESE ARE AMBIGUOUS BUT VICE FOREIGN MINISTER KOJI KAKIZAWA CAUTIONED THAT HIS COUNTRY MUST NOT DO THINGS WHICH INVITE MISUNDERSTANDING STILL THE POTENTIAL FOR DAMAGE TO THE USJAPANESE RELATIONSHIP WAS SO GREAT THAT SECRETARY OF STATE WARREN CHRISTOPHER TELEPHONED JAPANESE LEADERS TO PATCH THINGS UP GEORGE STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR TOLD REPORTERS THAT THE PRESIDENT MADE A CASUAL COMMENT ABOUT JAPANESE COURTESY AND ETIQUETTE THAT WAS TAKEN OUT OF CONTEXT HE ARGUED THAT IT WOULD BE WRONG TO SAY MR CLINTON ASSERTED THAT THE JAPANESE DON'T MEAN WHAT THEY SAY HE SAID THAT MR CLINTON WAS TELLING PRESIDENT YELTSIN ABOUT HIS CONVERSATIONS WITH PRIME MINISTER KIICHI MIYAZAWA THAT INDICATED JAPAN WOULD PLAN A CONSTRUCTIVE ROLE IN THE G7 PROCESS DESPITE A DISPUTE OVER THE KURILE ISLANDS JAPAN WANTS RUSSIA TO RETURN THE FOUR ISLANDS WHICH WERE SEIZED DURING WORLD WAR II MR CLINTON ACCORDING TO MR STEPHANOPOULOS WAS REASSURING PRESIDENT YELTSIN THAT HE BELIEVED THE JAPANESE WERE SERIOUS ABOUT THEIR COMMITMENT ON AID TO RUSSIA DESPITE THE LARGER DISPUTE HE DID SAY SOMETHING ALONG THE LINES OF HE BELIEVES THAT ON THIS ISSUE PRIME MINISTER MIYAZAWA INTENDS TO REALLY GO FORWARD WITH THE G7 PROCESS MR STEPHANOPOULOS SAID I THINK THAT THE SPECIFIC COMMENT WAS A BROAD GENERAL OBSERVATION FOLLOWED UP BY A SPECIFIC FINISH TO THE SENTENCE WHERE HE SAID IN THIS CASE HE BELIEVES THAT PRIME MINISTER MIYZAWA MEANS TO KEEP THE COMMITMENT FOR NOW THE JAPANESE APPEAR WILLING TO ACCEPT THE EXPLANATION SAYING THAT THEY SEE IT AS CONFIRMATION OF THEIR PLAN TO COOPERATE 9304060118 930406 GM'S CHIEF FINANCIAL OFFICER WAGONER TAKES ADDED POST OF PURCHASING CHIEF BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP IN AN UNUSUAL MOVE PUT CHIEF FINANCIAL OFFICER G RICHARD WAGONER IN CHARGE OF ITS CAMPAIGN TO SLASH PURCHASING COSTS THE 40YEAROLD MR WAGONER ONE OF GM PRESIDENT JOHN F SMITH JR'S INNER CIRCLE OF CONFIDANTS WILL REMAIN CHIEF FINANCIAL OFFICER BUT WILL ADD TO HIS DUTIES THE MANTLE OF COSTCUTTERINCHIEF THAT POST WAS OPENED UP LAST MONTH WHEN GM'S FORMER HEAD OF WORLDWIDE PURCHASING J IGNACIO LOPEZ DE ARRIORTUA DEFECTED TO VOLKSWAGEN AG MR WAGONER AN AFFABLE NATIVE OF WILMINGTON DEL WILL PRESENT A LESS THREATENING DEMEANOR TO GM'S SUPPLIERS THAN MR LOPEZ A SPANIARD WHO CAME TO DETROIT FROM GM EUROPE LAST MAY AND IMMEDIATELY BEGAN TEARING UP SUPPLIER CONTRACTS AND DEMANDING DOUBLE DIGIT PRICE CUTS AMONG MR WAGONER'S FIRST TASKS WILL BE TO SOOTHE SUPPLIER EXECUTIVES RUFFLED BY MR LOPEZ'S TACTICS WE FEEL CONFIDENT SUPPLIER RELATIONS WILL BE ON A POSITIVE PLANE GM EXECUTIVE VICE PRESIDENT WILLIAM E HOGLUND SAID BUT MR HOGLUND STRESSED THAT THE BASIC GLOBAL SOURCING STRATEGY MR LOPEZ ADVANCED OF LOOKING WORLDWIDE FOR THE LOWEST COST PARTS REGARDLESS OF PREVIOUS TIES ISN'T GOING TO CHANGE THE STRATEGY IS AN INTEGRAL PART OF MR SMITH'S TURNAROUND FORMULA HE SAID WE NEEDED TO SHOW PEOPLE INSIDE THE COMPANY AND SUPPLIERS THAT WE VIEW THIS GLOBAL SOURCING STRATEGY AS ONE OF THE MOST IMPORTANT THINGS WE'RE DOING WE NEEDED A GUY WITH STATURE SAID MR HOGLUND WHO IS A MEMBER OF GM'S BOARD OF DIRECTORS MR WAGONER ALSO WAS CHOSEN BECAUSE HE HAS EXPERIENCE BUILDING CROSSFUNCTIONAL TEAMS OF MANUFACTURING FINANCE AND PURCHASING MANAGERS AND HAS INTERNATIONAL EXPERIENCE MR HOGLUND SAID WHILE MR WAGONER SPENDS MORE TIME ON WORLDWIDE PURCHASING ISSUES DAYTODAY OPERATIONS OF THE FINANCE GROUP WILL BE OVERSEEN BY VICE PRESIDENT AND GROUP EXECUTIVE LEON J KRAIN GM SAID MR HOGLUND SAID MR WAGONER CAN TAKE ON THE PURCHASING ASSIGNMENT IN PART BECAUSE MR KRAIN IS THE ONLY EXECUTIVE WHO REPORTS DIRECTLY TO MR WAGONER TRADITIONALLY GENERAL MOTORS ACCEPTANCE CORP AND GM'S PENSION FUNDS ALSO REPORTED TO THE CHIEF FINANCIAL OFFICER BUT SINCE GM RESTRUCTURED ITS EXECUTIVE SUITE LAST YEAR THOSE BIG FUNCTIONS NOW REPORT DIRECTLY TO MR SMITH THE DECISION TO GIVE MR WAGONER SUCH BROAD RESPONSIBILITY ALSO HIGHLIGHTS THE DEGREE TO WHICH MR SMITH IS RELYING ON A SMALL CADRE OF LIEUTENANTS TO HELP LEAD THE OVERHAUL OF GM'S MASSIVE NORTH AMERICAN OPERATIONS MR WAGONER IS A MEMBER OF MR SMITH'S FIVEMEMBER PRESIDENT'S COUNCIL WHICH REPLACED THE OLD MANAGEMENT COMMITTEE AS THE RULING BODY OVER GM'S WORLDWIDE OPERATIONS THE OTHER MEMBERS OF THE PRESIDENT'S COUNCIL ARE MR HOGLUND MR SMITH'S NO 2 MAN IN NORTH AMERICA EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL HARRY J PEARCE AND LOUIS R HUGHES EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS LIKE MR SMITH AND MR HUGHES MR WAGONER IS A VETERAN OF GM'S FINANCE AND INTERNATIONAL OPERATIONS HE STARTED HIS CAREER IN GM'S TREASURER'S OFFICE IN 1977 WHERE HE WORKED CLOSELY WITH MR HUGHES FROM 1981 TO 1987 MR WAGONER WORKED IN FINANCE POSTS AT GM'S BRAZILIAN OPERATIONS BEFORE MOVING TO GM CANADA AS FINANCE DIRECTOR IN 1989 MR WAGONER BECAME FINANCE DIRECTOR FOR GM EUROPE WHERE HE WORKED SIDE BY SIDE WITH MR LOPEZ IN THE EFFORT TO REDUCE GM EUROPE'S PURCHASING COSTS IN A STATEMENT LAST NIGHT MR SMITH PRAISED MR WAGONER'S BROAD EXPERIENCE IN BOTH DOMESTIC AND INTERNATIONAL OPERATIONS AND INDICATED THE CAMPAIGN TO RESTRUCTURE GM'S PURCHASING WILL CONTINUE THE SUCCESS OF THAT INITIATIVE IS VITAL TO THE FUTURE COMPETITIVENESS OF GENERAL MOTORS MR SMITH SAID RICK HAS A DEPTH OF KNOWLEDGE IN BOTH OPERATIONS AND THE FINANCIAL SIDE OF THE BUSINESS HE'S AN ENTHUSIASTIC YET DISCIPLINED LEADER WHO KNOWS THE IMPORTANCE OUR PARTNERS PLACE ON COMMON ENTERPRISE AND LONGTERM RELATIONSHIPS MR WAGONER'S OPERATING EXPERIENCE WAS PRIMARILY IN BRAZIL HE TOOK OVER GM'S BRAZILIAN OPERATIONS IN JULY 1991 AND WAS IN THE PROCESS OF LEADING A TURNAROUND THERE MODELED ON THE ONE EXECUTED BY GM EUROPE IN THE LATE 1980S PART OF THAT EFFORT INVOLVED INSTITUTING A GLOBAL PURCHASING SYSTEM THAT PUT LOWCOST AND HIGHQUALITY AHEAD OF TRADITIONAL SUPPLIER TIES BUT IN NOVEMBER MR WAGONER WAS CALLED TO DETROIT TO STEP IN AS CHIEF FINANCIAL OFFICER AS PART OF A BOARDLED MANAGEMENT SHAKEUP THAT SAW MR SMITH INSTALLED AS CHIEF EXECUTIVE OFFICER AND THE DEPARTURE OF FORMER CHAIRMAN ROBERT C STEMPEL AND THREE OTHER SENIOR EXECUTIVES MR WAGONER NOW FACES A DELICATE TASK IN THE AFTERMATH OF MR LOPEZ'S SUDDEN DEPARTURE GM'S US MARKET SHARE IS SLUMPING MORE THAN COMPANY OFFICIALS HAD EXPECTED FORCING CUTBACKS IN PRODUCTION THAT THREATEN REVENUE AND PROFITABILITY THE MARKETSHARE SLIDE REFLECTS GM'S LACK OF NEW VEHICLES IN SEVERAL KEY MARKET SEGMENTS A PROBLEM THAT WILL TAKE ONE TO THREE YEARS TO CORRECT THAT MEANS THE STRONGEST LEVER MR SMITH HAS IN HIS EFFORT TO PUT GM'S NORTH AMERICAN OPERATIONS ON A BREAKEVEN FOOTING IS COST REDUCTION MR HOGLUND SAID GM EXPECTS TO REALIZE 25 BILLION IN SAVINGS THIS YEAR FROM MR LOPEZ'S EFFORTS TO CUT COSTS IN ADDITION TO 700 MILLION TO 900 MILLION SAVED LAST YEAR BUT MR LOPEZ ALSO DREW FIRE FROM INSIDE AND OUTSIDE GM FOR HIS RADICAL METHODS WHICH INCLUDED SEEKING 10 BIDS FOR EVERY PART AND PUSHING A TURBOCHARGED SYSTEM OF MANUFACTURING EFFICIENCY HE CALLED PICOS MR LOPEZ'S MESSIANIC ZEAL GALVANIZED MANY AMONG GM'S PURCHASING AND ENGINEERING STAFF BUT HIS FREQUENT DISMISSALS OF CRITICS AS LOSERS DID LITTLE TO WIN SUPPORT AMONG GM'S SUPPLIERS CRITICS ARGUED THAT IN THE LONG RUN GM WOULD BE A LOSER AS SUPPLIERS BECAME RELUCTANT TO COOPERATE OR SHARE IDEAS THUS MR WAGONER IS LIKELY TO TAKE A FAR LESS CONFRONTATIONAL APPROACH A GM SPOKESMAN SAID MR WAGONER WILL FOCUS ATTENTION ON IMPROVING RELATIONSHIPS WITH OTHER GM TEAMS PARTICULARLY ENGINEERING AND MANUFACTURING MR HOGLUND SAID GM WENT THROUGH UNUSUAL EFFORTS TO ASSURE THAT GM'S MANAGEMENT WAS COMFORTABLE WITH MR LOPEZ'S REPLACEMENT GM'S PERSONNEL OFFICE SURVEYED KEY EXECUTIVES TO GET THEIR OPINIONS OF WHAT QUALITIES A NEW PURCHASING CZAR SHOULD HAVE 9304060117 930406 CREDIT RATINGS GREYHOUND LINES INC DALLAS STANDARD & POOR'S CORP SAID IT PLACED ABOUT 255 MILLION OF GREYHOUND LINES DEBT ON CREDITWATCH WITH POSITIVE IMPLICATIONS S&P SAID THE ACTION AFFECTING GREYHOUND'S SINGLEB SENIOR UNSECURED DEBT AND THE SINGLEBMINUS SUBORDINATED DEBT REFLECTS A PROPOSED 75 MILLION COMMON EQUITY OFFERING THE STOCK OFFERING WOULD MORE THAN DOUBLE THE BUS CONCERN'S EQUITY BASE OF 523 MILLION AT THE END OF 1992 AND WOULD IMPROVE DEBT LEVERAGE S&P SAID MCGAW INC IRVINE CALIF MOODY'S INVESTORS SERVICE INC UPGRADED THE LONGTERM DEBT RATINGS OF THIS MEDICAL DEVICE CONCERN FOLLOWING A 46 MILLION EQUITY ISSUE THE PROCEEDS OF WHICH WERE USED TO REDEEM THE COMPANY'S 15 SUBORDINATED NOTES DUE 1999 MOODY'S SAID ABOUT 150 MILLION OF LONGTERM DEBT IS AFFECTED BY THE UPGRADE MOODY'S UPGRADED THE COMPANY'S SENIOR SECURED FLOATING RATE NOTES DUE 1997 TO BA2 FROM BA3 AND THE COMPANY'S 10375 SENIOR UNSECURED NOTES DUE 1999 TO BA3 FROM SINGLEB1 9304060116 930406 WHO'S NEWS CARTER HAWLEY HALE STORES INC CARTER HAWLEY HALE STORES INC LOS ANGELES EDWIN J HOLMAN WAS NAMED VICE CHAIRMAN AND CHIEF OPERATING OFFICER MR HOLMAN 46 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT OF OPERATIONS SINCE 1991 THE CHIEF OPERATING OFFICER POSITION HAD BEEN VACANT SINCE JANUARY WHEN WALDO BURNSIDE RETIRED THE RETAILER SAID THE VICE CHAIRMAN POST IS NEWLY CREATED 9304060115 930406 BUSINESS WORLD OUT OF FCC SIKES SAYS TELECOM SIGNALS STILL STRONG BY TIM W FERGUSON NEW YORK THE FIRST BLOW WAS STRUCK LAST WEEK AGAINST CABLE COMPANIES UNDER THE REREGULATION IMPOSED BY CONGRESS AND PRESIDENT CLINTON REPORTEDLY HAS CHOSEN AN AUTHOR OF THAT LAW SENATE STAFFER ANTOINETTE COOK TO HEAD THE FEDERAL COMMUNICATIONS COMMISSION COULD THIS BE TIME FOR CAPITAL TO FLEE THE US TELECOM MARKET NOT SO FAST SAYS A MAN WHO MIGHT BE FORGIVEN A MORE PARTISAN VIEW ALFRED SIKES HEADED THE FCC UNTIL JAN 19 THE LAST IN A LINE OF THREE REPUBLICAN CHAIRMEN WHO OVERSAW THE LIBERATION OF AMERICA'S GREATEST GROWTH INDUSTRY OF THE 1990S JUST SETTLING INTO THE TASK OF CREATING HEARST CORP'S NEW MEDIA AND TECHNOLOGY GROUP MR SIKES CALLS THE US EASILY THE HOTTEST SPOT IN THE WORLD FOR COMMUNICATIONS INNOVATION ENSCONCED IN THE ART DECO AMBIANCE OF HEARST'S HEADQUARTERS HE HAS NO ILLUSIONS ABOUT AN ANTEBELLUM INSTITUTION CONGRESS THAT HE AND HIS FCC PREDECESSORS PARRIED THE RELEVANT HOUSE SUBCOMMITTEE CHAIRMAN ED MARKEY OF MASSACHUSETTS IS AN UNRELENTING ACTIVIST ON BEHALF OF FEDERAL GOVERNMENT POWER IN AN AGE WHEN TECHNOLOGY IS DISPERSING DISCRETION TO MILLIONS OF END USERS NONETHELESS MR SIKES SAYS RECENT TELECOMMUNICATIONS HISTORY HAS BEEN ONE OF CONGRESSIONAL IRRELEVANCE AS JUDGES AND ENGINEERS OVERCAME THE OLD ORDER MOST DRAMATICALLY IN THE CASE OF AT&T'S BREAKUP THE COURTS RESTRUCTURED AS THE ENTREPRENEURS REWIRED NOT EVERYONE ON THE MARKET SIDE OF THIS MEGABATTLE IS AS CHEERY J GREGORY SIDAK WHO DIRECTS THE AMERICAN ENTERPRISE INSTITUTE'S PROJECT ON TELECOM DEREGULATION SEES CONGRESS A PONDEROUS BUREAUCRACY AT THE FCC AND RETROGRADE BUSINESS INTERESTS INCLUDING US NEWSPAPER PUBLISHERS WHICH MOSTLY OPPOSE ELECTRONIC COMPETITION FOR ADS STIFLING SOME ADVANCEMENT THE NEW CABLE LAW BORN OF BRIDLING OVER PRICE INCREASES AND ANGLING FOR ENFORCED DIVERSITY OF CONTENT SAW THE CLAPTRAP OF RADIO AND TV BROADCASTING LAW GRAFTED ON TO CABLE SAYS MR SIDAK MS COOK STEPDAUGHTER OF CLINTON CONFIDANT VERNON JORDAN COMES STRAIGHT FROM THE STIFLING POLITICAL CULTURE SHE EVEN GOT INVOLVED IN BARRING NEW VENTURES FROM A REALLOCATION OF RADIO SPECTRUM LONG ASSIGNED TO RURAL UTILITIES THAT IS HOW CONGRESS THINKS ABOUT TOMORROW MAYBE MS COOK WILL SHOW A NEW FACE AT THE FCC MR SIKES HIMSELF SURPRISED PEOPLE GIVEN HIS ORIGINS IN NOWSEN JOHN DANFORTH'S MISSOURI ORGANIZATION HE WAS PLACED IN THE COMMERCE DEPARTMENT IN 1986 AND ELEVATED TO FCC CHAIRMAN BY GEORGE BUSH THERE HE WAS AN ADVOCATE OF NEW TECHNOLOGY AND A CRITIC OF THE VARIOUS INTEREST GROUPS INCLUDING THE CABLE AND TELEPHONE COMPANIES WHEN THEY FOUGHT TO PROTECT TURF IN HIS CAPACITY AT HEARST WITH ITS VARIED STAKES IN COMMUNICATIONS INCLUDING A MAGAZINE PARTNERSHIP WITH DOW JONES & CO HE IS MORE RETICENT ON INTRAINDUSTRY SQUABBLES BUT HIS PORTFOLIO IS STILL INNOVATION AS HE WEIGHS BIDS FOR THE CORPORATE CASH AEI'S MR SIDAK FORESEES CONSIDERABLE VERTICAL INTEGRATION IN TELECOMMUNICATIONS AS GIANTS BRANCH OUT FROM THEIR BASES IN INFORMATION AND PROGRAMMING OR IN DISTRIBUTION SYSTEMS TELCOS AND CABLE TO COVER THE FIELD PERHAPS TO THE DETRIMENT OF SMALL FRIES WHO MIGHT OTHERWISE BE ABLE TO TURN A BLACK BOX INTO A WIRELESS REVOLUTION TO TOPPLE THE POWERS THAT BE MR SIKES HOWEVER EXPECTS ONLY ROMANCING BETWEEN PRODUCERS AND DISTRIBUTORS SEEKING THE SELECTIVE SYNERGIES SPURRING SO MANY MODERN INDUSTRIES HE FINDS HISTORICAL BASIS FOR THIS OUTLOOK IN A MATTER THAT WAS STILL GRIPPING THE FCC AS LATE AS LAST WEEK THE SYNDICATION OF PROGRAMMING BY THE BROADCAST NETWORKS THE COMMISSION REVERSING PAST RULINGS ALLOWED THE NETWORKS A CONTENT ROLE BUT THE ISSUE HAS LOST SOME OF ITS PUNCH BECAUSE TECHNOLOGY HAS LOOSENED THE GRIP THE WEBS HAVE OVER WHAT VIEWERS CAN SEE THE NETWORKS RECALLS MR SIKES HAD ONE OF THE VERY FEW MEANS OF DISTRIBUTION AND THEY CAPITALIZED ON THAT AND GOT FIRMLY INTO THE CONTENT BUSINESS THE GOVERNMENT INTERCEDED IN THE 1970S IF YOU'RE FORTUNATE ENOUGH TO HAVE ONE OF THE FEW MOST EFFICIENT FACILITIES AND THERE ARE HIGH BARRIERS TO ENTRY THEN YOU CAN GET INTO THE PROGRAMMING BUSINESS AND NOT BE VERY GOOD AT IT BUT HE GOES ON IF YOU'VE GOT AN EASY ENTRY SITUATION AND THAT'S I THINK WHERE WE'RE GOING THEN YOU'D BETTER BE VERY GOOD AT IT BECAUSE YOU'RE GOING TO HAVE TO COMPETE AGAINST THE BEST IF WE GO TO HUNDREDS OF CABLE CHANNELS AND WE GO TO THE VIDEO DIALTONE NETWORK THE TELCO ALTERNATIVE AND WE GO TO A SATELLITEDISTRIBUTED NETWORK OR WE GO TO CELLULAR VIDEO A NEW YORKAREA OUTFIT CALLED SUITE 12 IS THE PIONEER THAT BECOMES AN EASYENTRY BUSINESS SO THE BEST PROGRAMMING PEOPLE GET INTO CONTENT CREATION PEOPLE WHOSE CORE COMPETENCIES ARE IN DISTRIBUTION ARE GOING TO HAVE A ROUGH TIME THE BIG PLAYERS HAVE THEIR TENTACLES OUT TO BE SURE BUT THIS IS A PERIOD OF AMBIGUITY SAYS MR SIKES YOU'RE SEEING A LOT OF MOVES THAT ARE SORT OF EDUCATED GUESSES AT SOME POINT WE'RE GOING TO SEE A SORTING OUT INFORMATION'S DEMOCRATIC AGE HAS IMPLICATIONS FOR THE PRINTED PRESS OF COURSE AND SOMETIMES A PUBLISHER MIGHT BENEFIT RUPERT MURDOCH HAS RETURNED TO THE NEW YORK POST FROM WHICH HE WAS EXILED BECAUSE OF A BROADCASTING INTEREST IN THE BIG APPLE MR SIKES NEW TO TOWN SAYS HE FINDS THE IDEA THAT MR MURDOCH REPRESENTS A LOCAL CONCENTRATION OF POWER TO BE ABSURD THE ELECTRONIC ABILITY TO CUSTOMIZE NEWSPAPERS TO THE INDIVIDUAL READER MEANS IT IS NOW INDEED POSSIBLE TO ARGUE WITH THOSE WHO BUY INK BY THE BARREL THE FCC WILL HAVE TO CONSIDER THE MURDOCH CASE ALTHOUGH THE POLITICIANS SEEM WILLING TO GRANT IT LATITUDE BY CONTRAST MR SIKES SAYS I'M NOT SURE THE COMMISSION HAD ALL THAT MUCH DISCRETION IN ITS PRICINGROLLBACK ORDER TO CABLE OPERATORS LAST WEEK HE HAD OPPOSED THE 1992 LEGISLATION THAT DIRECTED THAT OUTCOME ADDED FCC STAFFING TO OVERSEE LOCAL CABLE SYSTEMS WILL IMPEDE PRESIDENT CLINTON'S EXPRESSED INTENT TO SHRINK THE FEDERAL PAYROLL HE OBSERVES BUT THE INTEREST GROUPS INCLUDING HE SENSED THE CABLE LOBBY WANTED THE ACTION IN WASHINGTON I THINK THAT'S A BIG MISTAKE HE DOES FAVOR FEDERAL JURISDICTION OVER THE SPECTRUM DESPITE BELIEVING THAT INERTIA IS THE PERSISTENT IDEOLOGY OF THE BELTWAY WHEN DEALING WITH THE BAND STATES WOULD LIKE A SPECTRUM SAY SO THAT THEY COULD BETTER IMPOSE SOCIAL TRANSFERS AMONG THE USERS AND GIVING THEM THAT POWER WOULD BE DISASTROUS FOR SUCH ADVANCES AS PHONE BYPASS TECHNOLOGY MR SIKES SAYS THE REFORMED FCC MAY ALLAY FEARS THE NEW DEMOCRATS WILL EXTEND THEIR REREGULATION FROM ENVIRONMENTAL AND SAFETY ARENAS INTO THE PURELY ECONOMIC OR TECHNOLOGY AND JURISPRUDENCE MAY SAVE THE DAY AGAIN IN ANY CASE TELECOM'S FUTURE WOULDN'T BE AS CLOUDED IF MR SIKES WERE STILL SENDING SIGNALS FROM THE INSIDE 9304060114 930406 BUSINESS BRIEF BECHTEL GROUP INC UNIT SIGNS 700 MILLION PACT FOR THAI PIPELINE PROJECT BECHTEL INTERNATIONAL INC SAID IT SIGNED A CONTRACT WITH THE PETROLEUM AUTHORITY OF THAILAND FOR A 700 MILLION NATURAL GAS PARALLEL PIPELINE PROJECT THE PROJECT SLATED FOR COMPLETION IN MARCH 1996 WILL TRANSPORT ONE BILLION STANDARD CUBIC FEET OF GAS A DAY DOUBLING CAPACITY FROM THE GULF OF THAILAND TO BANGKOK AND EASTERN INDUSTRIAL SEABOARD AREAS BECHTEL INTERNATIONAL'S ROLE IN THE PROJECT EMBRACES ENGINEERING PREPARATION OF PROCUREMENT AND CONSTRUCTION BID PACKAGES AND MANAGEMENT OF CONSTRUCTION BECHTEL INTERNATIONAL IS A UNIT OF BECHTEL GROUP INC A CLOSELY HELD ENGINEERING CONSTRUCTION MANAGEMENT AND ENVIRONMENTAL CONCERN BASED IN SAN FRANCISCO 9304060113 930406 FINANCING BUSINESS OCCIDENTAL PETROLEUM CORP OCCIDENTAL PETROLEUM CORP LOS ANGELES FILED A SHELF OFFERING OF 15 BILLION IN DEBT WHICH IT SAID IT INTENDS TO USE TO RETIRE DEBT AND FOR GENERAL CORPORATE PURPOSES IN A SECURITIES AND EXCHANGE COMMISSION FILING THE DIVERSIFIED ENERGY AND CHEMICALS COMPANY SAID THE SECURITIES WOULD BE SENIOR UNSECURED DEBT CONSISTING OF NOTES DEBENTURES OR OTHER DEBT NO UNDERWRITERS WERE NAMED 9304060112 930406 BUSINESS BRIEF CONTINENTAL CORP MARCH BLIZZARD LOSSES POSE 35 MILLION CHARGE TO INSURER CONTINENTAL CORP SAID IT EXPECTS TO TAKE A FIRSTQUARTER CHARGE OF 35 MILLION AFTER TAXES AND REINSURANCE FOR LOSSES FROM LAST MONTH'S EAST COAST BLIZZARD THE NEW YORK PROPERTY AND CASUALTY INSURER SAID ITS INSURANCE SUBSIDIARIES EXPECT TO RECEIVE ABOUT 9000 CLAIMS AS A RESULT OF THE MARCH 1114 STORM CONTINENTAL WHICH WILL REPORT EARNINGS MAY 5 HAD FIRSTQUARTER NET INCOME IN 1992 OF 543 MILLION OR 98 CENTS A SHARE AFTER A TAXLOSS CARRYFORWARD OF 92 MILLION 9304060111 930406 ECONOMY ACCOUNTING RULES BOARD IS UNDER FIRE AS IT NEARS DECISION ON TWO KEY ISSUES BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OUTSIDE CRITICISM OF THE FINANCIAL ACCOUNTING STANDARDS BOARD IS RAPIDLY MOUNTING AND SOME ACCOUNTANTS THINK THE ORGANIZATION'S INFLUENCE AND EVEN SURVIVAL MAY BE AT STAKE THE ACCOUNTING PROFESSION'S RULEMAKING BODY IS TO VOTE TOMORROW ON ONE OF ITS MOST CONTENTIOUS ISSUES WHETHER TO FORCE COMPANIES TO DEDUCT THE VALUE OF STOCK COMPENSATION TO EXECUTIVES FROM PROFITS ON TUESDAY THE FASB WILL VOTE ON ANOTHER HOTLY DEBATED TOPIC WHETHER TO COMPEL BANKS AND INSURANCE COMPANIES TO VALUE THE DEBT SECURITIES THEY HOLD AT CURRENT MARKET PRICES WHICH WOULD LOWER PROFITS IN A DOWN MARKET BOTH PROPOSALS ARE STRONGLY OPPOSED BY THE INDUSTRIES AFFECTED AND BY SOME ACCOUNTING FIRMS AS WELL THE FASB ALSO IS MIRED IN CONTROVERSY ON OTHER FRONTS WE'RE CERTAINLY ON THE HOT SEAT CONCEDES TIMOTHY LUCAS THE FASB'S RESEARCH DIRECTOR JOHN C BURTON AN ACCOUNTING PROFESSOR AT COLUMBIA UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS SAYS THE TORRENT OF CRITICISM EVENTUALLY MAY PROMPT THE ACCOUNTING PROFESSION CONGRESS OR GOVERNMENT REGULATORS TO WEAKEN OR EVEN REPLACE THE RULEMAKING BODY WITH A LESSINDEPENDENT GROUP WHETHER FASB WILL SURVIVE IS A LEGITIMATE QUESTION TO BE ASKED SAYS MR BURTON A FORMER CHIEF ACCOUNTANT OF THE SECURITIES AND EXCHANGE COMMISSION MR BURTON NOTES THAT NEITHER OF THE FASB'S TWO PREDECESSOR ORGANIZATIONS WERE ABLE TO SURVIVE LONGER THAN 20 YEARS BOTH WERE ARMS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS THE ACCOUNTING PROFESSION DECIDED TO CREATE THE FASB IN 1973 AS A FREESTANDING BODY SO IT COULD BE MORE INDEPENDENT ACCOUNTINGSTANDARDSETTING BODIES TEND TO HAVE A SHORT LIFE BECAUSE EACH YEAR THEY BUILD UP MORE ENEMIES SAYS MR BURTON DENNIS BERESFORD THE FASB'S CHAIRMAN CONCEDES THAT CLEARLY WE HAVE A LOT OF CONTROVERSIAL ISSUES ON OUR AGENDA AND A LOT OF PEOPLE WOULD LIKE US TO GO AWAY BUT HE SAYS THE BOARD BASED IN NORWALK CONN HAS TO DO WHAT IT CONSIDERS RIGHT REGARDLESS OF OUTSIDE PRESSURE THE TWO ISSUES HEADED FOR VOTES HAVE GENERATED MORE THAN 1000 NEGATIVE LETTERS TO THE FASB THE BUSINESS ROUNDTABLE STRONGLY OPPOSES THE STOCKOPTION MEASURE THAT THE FASB STAFF FAVORS TOMORROW THE BOARD WILL VOTE TO PROPOSE THIS MEASUREDEDUCTING THE VALUE OF OPTIONS FROM PROFITS OR ONE OF TWO OTHER MEASURES THAT WOULD REQUIRE COMPANIES TO DISCLOSE ONLY THE VALUE OF OPTIONS THE APPROACH THE ROUNDTABLE FAVORS THE PROPOSAL THAT IS CHOSEN WOULD BE SUBJECT TO PUBLIC COMMENT AND HEARINGS THE ROUNDTABLE A GROUP OF CHIEF EXECUTIVES FROM 200 MAJOR CORPORATIONS HAS ROUNDED UP AN ARRAY OF OPPONENTS TO FIGHT THE PROPOSAL THESE INCLUDE BIG PENSION FUND MANAGERS THE SIX BIGGEST ACCOUNTING FIRMS BENEFIT AND COMPENSATION CONSULTANTS AND SHAREHOLDER GROUPS THE ROUNDTABLE ARGUES THAT THE FASB MEASURE IS INACCURATE AND WOULD CAUSE PROFITS OF MANY COMPANIES TO FALL AFTER THEY ISSUE STOCK COMPENSATION THE OPPOSITION TO THE FASB IS PARTICULARLY SIGNIFICANT BECAUSE COMPANIES AND ACCOUNTING FIRMS CONTRIBUTE ABOUT ONETHIRD OF THE ORGANIZATION'S 15 MILLION ANNUAL REVENUE AT THE FINANCIAL ACCOUNTING FOUNDATION WHICH OVERSEES THE FASB'S OPERATIONS EIGHT OF THE 17 TRUSTEES COME FROM THE BUSINESS WORLD DONALD J KIRK AN ACCOUNTING PROFESSOR AT COLUMBIA UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS AND FASB CHAIRMAN FROM 1979 TO 1986 THINKS THE ROUNDTABLE TRIED TO SHORTCIRCUIT THE FASB'S DUEPROCESS DELIBERATIONS IN THE LONG RUN THIS ISN'T IN THE BEST INTERESTS OF BUSINESS SAYS MR KIRK THAT'S BECAUSE IT CAN LEAD TO EITHER MORE DRACONIAN REGULATIONS OR MAKING RULEMAKING A POLITICAL PROCESS THOMAS JONES EXECUTIVE VICE PRESIDENT OF CITICORP WHICH IS A ROUNDTABLE MEMBER DISAGREES EVERYBODY PLAYS HARDBALL WHEN IT COMES TO BIG ACCOUNTING ISSUES BECAUSE OF THEIR ENORMOUS SIGNIFICANCE ON COMPANIES' BOTTOM LINES HE SAYS MR JONES IS A TRUSTEE OF THE FINANCIAL ACCOUNTING FOUNDATION BEYOND THIS WEEK'S EVENTS TUESDAY'S VOTE ON VALUING CERTAIN DEBT SECURITIES AT MARKET PRICES ALSO HAS BECOME A MINEFIELD BANK AND INSURANCE COMPANIES THE BUSINESSES MOST AFFECTED HAVE LONG COMPLAINED THAT SUCH VALUATIONS WOULD SKEW THEIR REPORTED PROFITS AND CONFUSE READERS OF FINANCIAL STATEMENTS A LOT OF BANKERS FEEL FASB JUST DOESN'T UNDERSTAND THEIR BUSINESS SAYS DONNA FISHER MANAGER OF ACCOUNTING POLICY FOR THE 10000MEMBER AMERICAN BANKERS ASSOCIATION IF THE FASB APPROVES THE MARKETVALUATION PROPOSAL IT WILL BECOME A FORMAL ACCOUNTING RULE FASB ALSO FACES GROWING OPPOSITION BY BANKERS AND OTHER BUSINESSES TO OTHER PROPOSALS AND RULES THAT INVOLVE WRITING DOWN LOANS AND HEDGING FINANCIAL INSTRUMENTS OF COURSE IT WOULD TAKE ENORMOUS OPPOSITION FROM BUSINESS AND OTHER INTERESTS TO ACTUALLY THREATEN THE FASB'S SURVIVAL AND ONLY A FEW ACCOUNTANTS PREDICT THIS WILL HAPPEN BUT SEVERAL DEVELOPMENTS COULD SERIOUSLY ERODE THE FASB'S ROLE AS THE PRIVATE SECTOR'S CHIEF RULEMAKING BODY FOR ACCOUNTANTS FOR EXAMPLE TWO COMMITTEES FROM OTHER ACCOUNTING AND BUSINESS BODIES ARE TAKING HARD LOOKS AT FINANCIAL REPORTING TO DETERMINE WHETHER FASB IS DOING A GOOD JOB OR WHETHER ANOTHER APPROACH SHOULD BE RECOMMENDED A 14MEMBER COMMITTEE OF THE 310000MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS IS LOOKING AT THE ENTIRE AREA OF FINANCIAL REPORTING TO SEE WHETHER NEW DIRECTIONS ARE REQUIRED ITS FINAL REPORT IS DUE IN MID1994 EDMUND JENKINS CHAIRMAN OF THE INSTITUTE'S COMMITTEE SAYS THAT THE GROUP'S SOLE PURPOSE IS TO HELP THE FASB SET ITS FUTURE AGENDA BUT OTHER ACCOUNTANTS SAY THE COMMITTEE'S FINAL REPORT MAY BE SO CRITICAL THAT IT WOULD UNDERMINE THE FASB'S ROLE AS A RULEMAKER MEANWHILE A COMMITTEE OF THE 14000MEMBER FINANCIAL EXECUTIVE INSTITUTE'S RESEARCH FOUNDATION IS EXAMINING WHETHER FINANCIAL REPORTING ADHERES TO ECONOMIC REALITY JOHN SHANK A PROFESSOR OF ACCOUNTING AT DARTMOUTH COLLEGE HANOVER NH COMMENTS THE VERY FORMATION OF THE TWO COMMITTEES PRESUMES THAT THE FASB SHOULD BE SECONDGUESSED ALREADY ERODING ITS POWER 9304060109 930406 ABREAST OF THE MARKET INDUSTRIALS INCH UP ON REBOUND IN BONDS STABILITY IN TOBACCOS BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS INCHED HIGHER BUOYED BY A REBOUND IN BONDS AND STABILIZATION IN TOBACCO SHARES BUT MANY OTHER MAJOR GROWTH STOCKS CONTINUED TO SLIDE A MORE THAN ONEPOINT PLUNGE IN LONGTERM TREASURY BONDS AND A DEEP SELLOFF IN TOBACCO STOCKS HAD CLOBBERED THE MARKET FRIDAY SENDING THE DOW JONES INDUSTRIAL AVERAGE INTO ITS DEEPEST SLIDE IN MORE THAN SIX WEEKS TRADERS SAID A REBOUND OF MORE THAN 3/8POINT IN THE 30YEAR TREASURY BOND AND MODERATE GAINS IN TOBACCO STOCKS HELPED TO STABILIZE THE STOCK MARKET YESTERDAY THE INDUSTRIAL AVERAGE EDGED UP 838 OR 025 TO 337919 PHILIP MORRIS WHOSE NEGATIVE EARNINGS PROJECTION TORPEDOED THE MARKET FRIDAY ADDED 1/2 TO 49 7/8 ON MARKETLEADING VOLUME OF 163 MILLION SHARES THE STOCK IS STILL 22 LOWER THAN IT WAS BEFORE THE COMPANY DISCLOSED ITS FORECAST AND ITS PLAN TO SLASH PRICES ON ITS MARLBORO CIGARETTE BRAND HOWEVER THE NUMBER OF DECLINING STOCKS ON THE BIG BOARD TOPPED THE NUMBER OF ADVANCERS BY 988 TO 916 EXCHANGE VOLUME WAS MODERATELY ACTIVE AT 238630000 SHARES COMPARED WITH 323330000 FRIDAY THE STANDARD & POOR'S 500 STOCK INDEX ROSE 090 OR 020 TO 44229 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 021 OR 009 TO 24440 THE MARKET'S BUOYANCY IN THE WAKE OF FRIDAY'S ACTION SURPRISED MANY TRADERS ROBERT KAHAN MANAGER OF EQUITY TRADING AT MONTGOMERY SECURITIES SAID WE ARE SEEING FURTHER EVIDENCE OF ALL THE CASH THAT IS OUT THERE PEOPLE ARE USING THE DECLINE IN STOCK PRICES TO ACCUMULATE MORE THE TOBACCO SEGMENT OF THE DOW JONES EQUITY MARKET INDEX JUMPED 12 UST INC CLIMBED 1 TO 27 AND BROOKE GROUP INCHED UP 1/8 TO 1 7/8 AMERICAN BRANDS THOUGH WAS UNCHANGED AT 30 AND RJR NABISCO FELL 3/8 TO 6 3/8 OTHER CONSUMERORIENTED GROWTH STOCKS CONTINUED TO SLIDE SOME STOCKS THAT HAD BEEN THE MARKET'S LEADERS IN RECENT YEARS POSTED STEEP LOSSES AGAIN COCACOLA CO FELL 1 TO 41 HOME DEPOT DROPPED 1 1/4 TO 59 1/4 PROCTER & GAMBLE SHED 1 1/4 TO 47 3/8 AND WALT DISNEY SLIPPED 1 3/8 TO 42 3/8 IT'S A CARRYOVER FROM THE SCARE FROM PHILIP MORRIS SAID EDWARD COLLINS HEAD OF EQUITY TRADING AT DAIWA SECURITIES SOME OF THE PORTFOLIO MANAGERS ARE ANTICIPATING THAT THIS COULD BE THE NEXT AREA TO BE HIT BY A SELLOFF SO WHY NOT LIGHTEN UP A BIT COLGATEPALMOLIVE SLUMPED 2 5/8 TO 62 1/8 GOLDMAN SACHS ANALYST JACK SALZMAN SAID THAT EXCLUDING RECENT ACQUISITIONS THE NEW YORK HOUSEHOLD PRODUCTS COMPANY'S OPERATING PROFIT FROM US SALES COULD DECLINE IN THE FIRST QUARTER BUT HE SAID THE SHORTFALL SHOULD BE OFFSET BY GAINS FROM OPERATIONS IN DEVELOPING MARKETS AND IN EUROPE STOP & SHOP SKIDDED 1 7/8 TO 21 1/2 GOLDMAN SACHS REMOVED THE BOSTON SUPERMARKET COMPANY'S STOCK FROM ITS RECOMMENDED LIST THE BROKERAGE FIRM CITED THE STOCK'S VALUATION TEREX SLUMPED 2 TO 8 3/8 A DIRECTOR OF THE COMPANY SAID HE MAY RESIGN FROM THE BOARD DUE TO CONCERNS ABOUT MANAGEMENT THE COMPANY MAKES TRUCK TRAILERS AND HEAVY EQUIPMENT ASSET INVESTORS SLIPPED 5/8 TO 5 7/8 THE REAL ESTATE INVESTMENT TRUST HAD A LOSS OF FOUR CENTS A SHARE IN THE FOURTH QUARTER AFTER EARNING 44 CENTS A YEAR AGO THE COMPANY ADDED THAT IT EXPECTS FUTURE TRUST INCOME TO BE SUBSTANTIALLY LOWER LESLIE FAY SHARES PLUMMETED 2 1/4 TO 3 AFTER THE CLOTHING MAKER FILED FOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE THE COMPANY CITED THE FINANCIAL IRREGULARITIES THAT IT FIRST DISCLOSED IN EARLY FEBRUARY AS RECENTLY AS JANUARY THE STOCK WAS ABOVE 12 SHARES OF FOREST PRODUCTS COMPANIES SURGED FOLLOWING LAST WEEK'S TIMBER SUMMIT MEETING AMONG INDUSTRY OFFICIALS ENVIRONMENTALISTS AND CLINTON ADMINISTRATION OFFICIALS MANY OF THESE STOCKS HAD TUMBLED AHEAD OF THE MEETING BUT ANALYSTS SAY MANY OBSERVERS NOW THINK THE PRESIDENT WILL AVOID INITIATIVES THAT WILL SIGNIFICANTLY DEPRESS TIMBER INDUSTRY PROFITS WEYERHAEUSER JUMPED 3 1/8 TO 42 1/4 GEORGIAPACIFIC ROSE 3 TO 61 3/4 INTERNATIONAL PAPER ADDED 1/2 TO 63 LOUISIANAPACIFIC INCREASED 1 3/8 TO 70 AND POTLATCH CLIMBED 3/4 TO 48 1/2 PIER 1 IMPORTS ADDED 3/8 TO 10 1/2 AFTER THE HOME FURNISHINGS COMPANY AGREED TO SELL ITS 495 STAKE IN SUNBELT NURSERY TO GENERAL HOST PIER 1 WILL RECEIVE 1940000 SHARES OF GENERAL HOST COMMON IN EXCHANGE FOR THE STAKE SHARES OF SUNBELT A GARDEN AND NURSERY PRODUCTS RETAILER WERE UNCHANGED AT 5 3/8 ON THE AMERICAN STOCK EXCHANGE GENERAL HOST A RETAILER WAS UNCHANGED AT 9 1/8 GENERAL INSTRUMENT JUMPED 3 3/8 TO 29 1/8 AFTER ANALYSTS MADE POSITIVE COMMENTS AND FOLLOWING A NEW YORK TIMES REPORT THAT THE COMPANY WILL TEAM UP WITH MICROSOFT AND INTEL TO DEVELOP A PRODUCT TO BE USED WITH FUTURE CABLE TELEVISION SYSTEMS GENERAL INSTRUMENT HAD PLUNGED 3 1/2 ON FRIDAY 9304060108 930406 INTERNATIONAL EC CAR REGISTRATIONS FELL 125 IN MARCH LED BY DROP IN SPAIN BRUSSELS THE PLUNGE IN NEW CAR REGISTRATIONS ACROSS EUROPE HAS BEEN SHARPER THAN MOST ANALYSTS EXPECTED IN MARCH CAR REGISTRATIONS IN THE EUROPEAN COMMUNITY WERE DOWN 125 FROM A YEAR EARLIER ACCORDING TO DATA RELEASED BY THE ASSOCIATION OF EUROPEAN AUTOMOBILE CONSTRUCTORS AN INDUSTRY LOBBYING GROUP IN BRUSSELS THE GROUP'S EXPERTS HAD PREDICTED A DECLINE IN THE EC CAR MARKET OF ONLY 10 THIS YEAR THE DECLINE WAS SHARPEST IN SPAIN WHERE 29 FEWER CARS WERE REGISTERED THAN IN MARCH 1992 HERE WE REALLY HAD TO ADJUST OUR FORECAST SAID MICHAEL GEIGER A CAR SPECIALIST AT NATWEST SECURITIES LTD IN LONDON HE SAID SPANISH CAR SALES DROPPED AFTER THE DEVALUATION OF THE PESETA WHICH HAS MADE IMPORTS AND PRODUCTION COSTLIER IN ITALY THE LOBBYING GROUP'S FIGURES INDICATE A 19 DROP IN CAR REGISTRATIONS LAST MONTH THE ONLY MAJOR MARKET SHOWING AN INCREASE WAS BRITAIN WHERE REGISTRATIONS ROSE 146 IN MARCH ANALYSTS AGREED THAT THE RISE WAS A RESULT OF THE ENDING OF THE BRITISH RECESSION BUT THEY ALSO SAID IT LOOKED MORE IMPRESSIVE BECAUSE REGISTRATIONS WERE PICKING UP FROM A LOWER LEVEL THAN IN OTHER EUROPEAN COUNTRIES IN GERMANY NEW CAR REGISTRATIONS LAST MONTH DECLINED 19 FROM A YEAR EARLIER HOWEVER THAT DROP LOOKS WORSE THAN IT MIGHT BE BECAUSE 1991 AND 1992 WEREN'T NORMAL YEARS SAID NATWEST'S MR GEIGER THEY WERE HISTORIC PEAKS THESE NUMBERS JUST MEAN WE'RE RETURNING TO NORMAL LEVELS 9304060107 930406 MARKETSCAN AS MORE AMERICANS DECLARE WAR ON DIRT CLEANINGPRODUCT FIRMS MAKE TIDY SUMS BY KATHLEEN DEVENY CALL IT THE BEGINNING OF A HOUSEKEEPING RENAISSANCE SALES OF MANY CLEANING PRODUCTS ARE SPARKLING THESE DAYS BUOYED BY THE IMPROVING ECONOMY AGGRESSIVE NEW PRODUCT LAUNCHES AND A FUNDAMENTAL SHIFT IN AMERICA'S HOUSEKEEPING HABITS AFTER MORE THAN A DECADE OF LEARNING TO ENDURE DUST BUNNIES AND TOLERATE BATHTUB RINGS MORE AMERICANS ARE STARTING TO PULL ON RUBBER GLOVES AND HOIST THEIR MOPS WHICH COMES AS NO SURPRISE TO MYRA STARK SENIOR VICE PRESIDENT AND DIRECTOR OF CREATIVE RESEARCH AT SAATCHI & SAATCHI ADVERTISING IN NEW YORK THE HOME HAS ONCE AGAIN BECOME A MORE IMPORTANT FOCAL POINT IN FAMILY LIFE AS WELL AS A REFUGE FOR MANY DISILLUSIONED BABY BOOMERS SHE SAYS IT ONLY MAKES SENSE THAT CONSUMERS WOULD BE MORE INCLINED TO SPRUCE UP THE PLACE SALES OF ALL KINDS OF NESTINGRELATED PRODUCTS ARE GOING THROUGH THE ROOF MS STARK SAYS THE TIDINESS TREND IS UNDERSCORED BY DATA GATHERED FROM SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF CARPET CLEANERS AND DEODORIZERS JUMPED 193 TO 4354 MILLION DURING THE 52 WEEKS ENDED JAN 31 SALES OF TOILETBOWL CLEANERS GREW 16 TO 3361 MILLION WHILE SALES OF NONABRASIVE TUB AND TILE CLEANERS SURGED 113 TO 2874 MILLION EVEN MAKERS OF MOPS AND BROOMS CLEANED UP WITH SALES UP 102 TO 454 MILLION BUT NOT ALL CLEANING PRODUCTS ARE PROSPERING SALES OF ALLPURPOSE HOUSEHOLD CLEANERS THE LARGEST OF THE HOUSEKEEPING CATEGORIES SLIPPED 16 TO 6937 MILLION WHILE SALES OF WINDOW AND GLASS CLEANERS MEANWHILE DECLINED 97 TO 2379 MILLION CERTAINLY THE ERA WHEN HOMEMAKERS MEASURED THEIR SELFWORTH IN THE GLEAM OF WOOD FLOORS IS GONE PROBABLY FOR GOOD AND THE ANNUAL SPRINGCLEANING RITUAL A NECESSITY WHEN MORE HOMES WERE HEATED WITH WOOD AND COAL HAS LARGELY DISAPPEARED SALES OF CLEANING PRODUCTS NOW PEAK IN THE FALL AS PEOPLE PREPARE FOR THE HOLIDAY SEASON AND VISITS FROM RELATIVES SOCIAL HISTORIANS SAY STANDARDS OF HOUSEKEEPING HAVE STEADILY DECLINED SINCE THE 1950S AS WOMEN FOUND OTHER WAYS TO BOLSTER THEIR SELFESTEEM AMERICANS' WILLINGNESS TO LIVE WITH A LITTLE DUST ACCELERATED DURING THE 1970S AS WOMEN SURGED INTO THE WORK FORCE AND MEN LARGELY FAILED TO PICK UP THE SLACK BY THE MID1980S THE MERE MENTION OF HOUSEWORK ELICITED HOSTILITY FROM SOME PROFESSIONAL WOMEN WHO WISHED TO DISTANCE THEMSELVES FROM TRADITIONAL ROLES YET THE HEALTHY SALES GROWTH OF MANY CLEANING PRODUCTS INDICATES THAT THE DEMISE OF HOUSEKEEPING WAS EXAGGERATED WHILE HOUSEKEEPERS NO LONGER SPEND HOURS ON THEIR HANDS AND KNEES SCRUBBING FLOORS THEY ARE WILLING TO SPEND MORE MONEY ON PRODUCTS THAT PROMISE TO MAKE THEIR LIVES EASIER THEY ARE ALSO MORE FOCUSED IN THEIR EFFORTS SPENDING MORE TIME ON KEEPING KITCHENS AND THE BATHROOMS PRISTINE FOR EXAMPLE AND LESS TIME WORRYING ABOUT WIPING AWAY STRAY FINGERPRINTS KEEPING WINDOWS STREAKFREE AND VACUUMING BEHIND THE COUCH HELOISE CRUSE WHOSE SYNDICATED COLUMN OF HOUSEHOLD TIPS HINTS FROM HELOISE APPEARS IN 500 NEWSPAPERS BELIEVES THERE ARE CLEAR SIGNS OF A CLEANING RESURGENCE FIVE OR SIX YEARS AGO SHE SAYS SHE WOULD MEET PROFESSIONAL WOMEN WHO WOULD GET HUFFY AND SAY I WOULD NEVER READ YOUR STUFF HAVING SURVIVED THE '80S THE DOYENNE OF HOUSEKEEPING SAYS SHE NOW DETECTS A SHIFT IN ATTITUDE AMONG CONSUMERS AND THAT THE NUMBER OF LETTERS SHE RECEIVES FROM READERS HAS STEADILY INCREASED IN RECENT YEARS MARKETERS OF CLEANING PRODUCTS HAVE BEEN WORKING OVERTIME TO PROVIDE CONSUMERS WITH A HOST OF NEW AND IMPROVED OPTIONS AND PLENTY OF HIGHVALUE COUPONS TO ENCOURAGE EXPERIMENTATION IN 1992 MARKETERS SPUN OUT 63 NEW GENERALPURPOSE CLEANERS AN INCREASE OF ABOUT 24 OVER THE PREVIOUS YEAR ACCORDING TO RICHARD LAWRENCE PRESIDENT OF MARKETING INTELLIGENCE SERVICE LTD A NEWPRODUCT INFORMATION FIRM IN NAPLES NY THAT COMPARES WITH A 3 INCREASE IN NEW PRODUCTS ACROSS ALL CONSUMERGOODS CATEGORIES PROCTER & GAMBLE CO FOR EXAMPLE SCORED A HIT WITH CINCH AN ALLPURPOSE CLEANER THAT ALSO PROMISES TO CLEAN GLASS SURFACES SALES OF THE CLEANER IN SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS MORE THAN DOUBLED DURING THE RECENT 52WEEK PERIOD TO 393 MILLION LAST FALL PROCTER FOLLOWED WITH A NONABRASIVE COMET BATHROOM CLEANER IN A SPRAY BOTTLE CLOROX CO MEANWHILE ADDED A NEW VERSION OF ITS ALLPURPOSE FORMULA 409 IN FEBRUARY THAT INCORPORATES A GLASSCLEANING AGENT SIMILARLY SC JOHNSON & SON INC HAS REJUVENATED THE BATHROOMCLEANER MARKET WITH ITS DUCK LINE OF BATHROOM AND TOILETBOWL CLEANERS TOILET DUCK A TOILETBOWL CLEANER WITH A DUCKLIKE NECK FOR REACHING UNDER THE RIM RANG UP SALES OF 116 MILLION DURING THE 52WEEK PERIOD ITS FIRST YEAR ON RETAILERS' SHELVES THE COMPANY FOLLOWED WITH A BATHROOM DUCK CLEANER AND IS ABOUT TO ROLL OUT A NEW VERSION OF THE DUCK LINE IN A POTPOURRI SCENT PEOPLE MAY NOT BE DOING INDEPTH CLEANING THE WAY THEIR PARENTS DID SAYS A SPOKESWOMAN FOR SC JOHNSON & SON BUT THEY ARE DOING TOUCHUP CLEANING MORE OFTEN THE GROWING INTEREST IN CLEANING IS DUE PARTLY TO DEMOGRAPHICS AS AGING BABY BOOMERS SETTLE DOWN AND HAVE CHILDREN OF THEIR OWN THEY'RE LIKELY TO SPEND MORE TIME AT HOME AND MORE MONEY ON MAINTENANCE PRODUCTS EVEN IF THEY DON'T DO THE DIRTY WORK THEMSELVES MORE AFFLUENT PEOPLE WHO ARE REDISCOVERING DOMESTIC PLEASURES NOW PURCHASE SUPPLIES FOR CLEANING SERVICES OR MAIDS BUT MS STARK DIRECTOR OF CREATIVE RESEARCH AT SAATCHI & SAATCHI SUGGESTS A MORE FUNDAMENTAL EXPLANATION THE GIANT POSTWAR GENERATION BORN IN A TIME OF GREAT AFFLUENCE HAS BEEN SETTLING DOWN DURING A GLOBAL ECONOMIC CONTRACTION THE RESULT ACCORDING TO MS STARK HAS BEEN A WIDESPREAD SENSE OF DISILLUSIONMENT AND A WITHDRAWAL FROM THE OUTSIDE WORLD WHEN WE CAN'T FULFILL OUR EXPECTATIONS IN THE OUTSIDE WORLD SHE SAYS IT IS NATURAL TO LOOK FOR MORE ENDURING GRATIFICATION FROM MORE TRADITIONAL SOURCES SUCH AS THE HOME OR FAMILY HELOISE FOR HER PART SEES A FAR MORE OPTIMISTIC SCENARIO EACH HOUSEHOLD MAY BE A BIT CLEANER IN THE FUTURE SHE PREDICTS BECAUSE YOUNGER MEN WILL BEGIN TO BE RESPONSIBLE FOR A LARGER SHARE OF HOUSEHOLD TASKS INDEED HER NEXT BOOK A LITANY OF HOUSEHOLD TIPS FOR SINGLES WAS INSPIRED PARTLY BY THE INCREASING VOLUME OF LETTERS SHE RECEIVES FROM MEN I'M 41 AND WOMEN IN MY GENERATION HAVE TRAINED THEIR SONS BETTER SHE SAYS HER OWN STEPSON KNOWS HIS WAY AROUND AN IRON AND IS PERFECTLY CAPABLE OF LOADING THE DISHWASHER MEN WHO ARE YOUNGER THAN 30 REALIZE THAT HOUSEKEEPING IS PART OF THEIR JOB TOO NOT THAT A TRUCE HAS BEEN STRUCK IN THE BATTLE OF THE SEXES HOWEVER SLIGHTLY MORE THAN 90 OF WOMEN STILL CLAIM TO BE RESPONSIBLE FOR MORE THAN HALF OF THE HOUSEHOLD CLEANING ACCORDING TO A NEW SURVEY OF 500 ADULTS COMMISSIONED BY BLACK & DECKER CORP THE MAKER OF DUSTBUSTER ABOUT HALF OF MALE RESPONDENTS MEANWHILE CLAIMED THEY DID MORE THAN HALF THE CLEANING 9304060106 930406 FINANCING BUSINESS SYMANTEC CORP SYMANTEC CORP SAID IT COMPLETED A PRIVATE PLACEMENT OF 25 MILLION OF 775 CONVERTIBLE SUBORDINATED NOTES DUE FEB 28 2001 THE NOTES ARE CONVERTIBLE INTO COMMON STOCK AT 12 A SHARE INVESTORS IN THE ISSUE ARE MORGAN GUARANTY TRUST CO OF NEW YORK ACTING AS TRUSTEE FOR COMMINGLED PENSION TRUST FUND AND NORTHWESTERN MUTUAL LIFE INSURANCE CO THE SOFTWARE COMPANY BASED IN CUPERTINO CALIF SAID PROCEEDS ARE TO BE USED FOR WORKING CAPITAL DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACTED AS AGENT FOR THE PRIVATE PLACEMENT 9304060105 930406 WHO'S NEWS CANON INC CANON INC TOKYO HARUO MURASE WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE CANON USA SUBSIDIARY SUCCEEDING HIDEHARU TAKEMOTO MR MURASE 53 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT SALES AND MARKETING OPERATIONS FOR CANON USA LAKE SUCCESS NY MR TAKEMOTO 58 BECOMES PRESIDENT OF THE CANON SALES CO UNIT IN TOKYO ALSO KEIZO YAMAJI 65 PRESIDENT OF CANON INC BECOMES VICE CHAIRMAN OF THE PARENT AND CHAIRMAN OF CANON USA AND CANON EUROPE HAJIME MITARAI 54 FORMERLY SENIOR MANAGING AND REPRESENTATIVE DIRECTOR OF CANON INC SUCCEEDS DR YAMAJI AS PRESIDENT CANON MAKES CAMERAS COPIERS AND OTHER OFFICE EQUIPMENT 9304060104 930406 ECONOMY MIDSIZE FIRMS TO HIRE DESPITE GLUM OUTLOOK BY AL EHRBAR STAFF REPORTER OF THE WALL STREET JOURNAL MIDSIZE COMPANIES PLAN TO ADD EMPLOYEES AND SPEND MORE ON CAPITAL EQUIPMENT THIS YEAR BUT THEIR TOP FINANCIAL OFFICERS ARE SURPRISINGLY DOWNBEAT ABOUT THE PROSPECTS FOR THE ECONOMY AS A WHOLE FINANCIAL EXECUTIVES ALSO ARE SKEPTICAL ABOUT THE CLINTON ECONOMIC PROGRAM SAYING THEY OPPOSE THE PLANNED TAX INCREASES AND DOUBT THAT THE ADMINISTRATION AND CONGRESS WILL PRODUCE THE PROMISED SPENDING CUTS AND DEFICIT REDUCTION I THINK THE CLINTON PROGRAM IS COUNTERPRODUCTIVE SAYS ROBERT MUIR CHIEF FINANCIAL OFFICER OF LACY CONSTRUCTION CO IN DALLAS I'M OPPOSED TO THE APPROACH I'D RATHER SEE THE SPENDING CUTS BEFORE THE TAX INCREASES MR MUIR IS ONE OF 400 SENIOR FINANCIAL OFFICERS AT MIDSIZE COMPANIES WHO PARTICIPATED SEVERAL WEEKS AGO IN A SURVEY BY CIT GROUP A COMMERCIAL FINANCE COMPANY OWNED JOINTLY BY DAIICHI KANGYO BANK LTD AND CHEMICAL BANKING CORP OVERALL ONLY 44 OF THE SURVEY RESPONDENTS SAY THEY BELIEVE THE ECONOMY IS IMPROVING VS 71 A YEAR AGO AND 90 SAY THEY EXPECT GROWTH THIS YEAR TO BE SLUGGISH OR MODERATE ONLY 3 EXPECT A CONTINUATION OF THE SUBSTANTIAL GROWTH THAT THE ECONOMY EXPERIENCED IN THE SECOND HALF OF LAST YEAR THAT ASSESSMENT OF THE ECONOMY IS SOMEWHAT AT ODDS WITH HOW THE EXECUTIVES VIEW THEIR OWN COMPANIES SOME 26 SAY THEY PLAN TO ADD MORE WORKERS THIS YEAR WHILE ONLY 9 SAY THEY INTEND TO MAKE STAFF REDUCTIONS SIMILARLY 40 HAVE INCREASED THEIR CAPITAL SPENDING BUDGETS THIS YEAR VS 16 THAT PLAN TO SPEND LESS LACY A HIGHWAY CONSTRUCTION COMPANY IS DEFINITELY IN THE GROWTH MODE AFTER SPENDING THREE YEARS SHRINKING SAYS MR MUIR ADDING THAT THE PRESIDENT'S PLAN TO BOOST INFRASTRUCTURE SPENDING ONLY HAS POSITIVE IMPLICATIONS FOR US THE FINANCIAL EXECUTIVES ALSO SEEM MORE SANGUINE ABOUT CREDIT CONDITIONS THAN THEY WERE A YEAR AGO LAST YEAR EXECUTIVES IN THE CIT SURVEY RANKED LOOSENING BANK REGULATIONS NO 3 AMONG NINE THINGS THE GOVERNMENT COULD DO TO IMPROVE THE ECONOMY THIS YEAR THEY PLACED IT FIFTH BEHIND SUCH THINGS AS CUTTING SPENDING ON SOCIAL PROGRAMS STRENGTHENING TRADE REGULATIONS AND REFORMING THE HEALTHCARE SYSTEM TAX INCENTIVES FOR BUSINESS RANKED NO 1 IN BOTH YEARS THE DIMINISHING IMPORTANCE OF THE CREDIT CRUNCH MAY REFLECT THE IMPROVED FORTUNES OF COMPANIES IN THE SURVEY WHILE 40 PLAN TO SPEND MORE ON CAPITAL EQUIPMENT THIS YEAR 41 SAY THEIR DEBT WILL BE LOWER THIS YEAR VS 17 THAT SAY IT IS GOING UP AND 37 SAY THEY PLAN TO BORROW LESS IN OTHER WORDS THE COMPANIES ARE RELYING MORE ON CASH FLOWS FROM OPERATIONS AND LESS ON BORROWED FUNDS TO FINANCE EQUIPMENT ALBERT GAMPER JR CIT'S PRESIDENT SAYS THE SURVEY RESULTS ALSO ARE AT ODDS WITH HIS COMPANY'S BUSINESS IN RECENT MONTHS THE FOURTH QUARTER OF 1992 WAS VERY STRONG IN NEW BUSINESS FOR US HE SAYS AND THE FIRST QUARTER ALSO WAS VERY GOOD WITH THE EXCEPTION OF THE WEST COAST BUT THERE IS NO REAL BULLISHNESS IN THE SURVEY IT'S A HOHUM RESPONSE THERE IS NOTHING HOHUM ABOUT THE ASSESSMENT OF THE CLINTON PROGRAM HOWEVER THOSE WHO STRONGLY DISAPPROVE OF THE PRESIDENT'S PLANS OUTNUMBER THOSE WHO STRONGLY APPROVE BY A MARGIN OF BETTER THAN 4 TO 1 33 VS 8 WITH MOST OPPOSING TAX INCREASES AND DOUBTING CONGRESS WILL CUT SPENDING INCLUDING THOSE WHO APPROVE OR DISAPPROVE SOMEWHAT THE TALLY CAME IN AT 37 FOR AND 55 AGAINST I DON'T KNOW ABOUT ALL THOSE NEW TAXES SAYS BW JONES PRESIDENT OF ALABAMA CONTRACTORS EQUIPMENT INC IN GADSDEN ALA IF YOU TAKE IT AWAY FROM A FELLOW HE CAN'T VERY WELL SPEND IT 9304060103 930406 COMMODITIES CROP FUTURES SETTLE LOWER AS TRADERS WONDER WHAT HAPPENS WHEN FOOD FOR RUSSIA RUNS OUT BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US CROP PRICES SLIPPED IN THE WAKE OF PRESIDENT CLINTON'S OFFER OF AN 894 MILLION FOOD AID PACKAGE FOR RUSSIA THE PACKAGE OF 700 MILLION IN LOWINTEREST LONGTERM CREDIT AND 194 MILLION IN DONATED FOOD FALLS WITHIN THE EXPECTATIONS OF MOST GRAIN TRADERS WHO HAVE PUSHED UP WHEAT AND CORN PRICES BY ROUGHLY 8 AND 5 RESPECTIVELY SINCE MIDMARCH BUT GRAIN PRICES SETTLED SLIGHTLY LOWER AS TRADERS BEGAN WORRYING ABOUT WHAT HAPPENS AFTER THE PACKAGE RUNS OUT BY THE END OF SUMMER WHILE THE FOOD AID PACKAGE WILL RESTART US GRAIN SHIPMENTS TO RUSSIA THE PACE WILL LAG BEHIND THE LEVEL OF RECENT YEARS AND MOSCOW STILL APPEARS FAR FROM MAKING GOOD ON THE GRAIN LOAN DEFAULTS THAT BLOCK IT FROM BUYING US GRAIN THROUGH NORMAL CHANNELS THIS PACKAGE IS POSITIVE BUT ISN'T A BOON TO US FARMERS SAYS JOHN URBANCHUK AN AGRICULTURAL ECONOMIST AT AUS CONSULTANTS INC IN PHILADELPHIA IT JUST SORT OF KEEPS THINGS ALIVE IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT FUTURES CONTRACT FOR MAY DELIVERY DROPPED 45 CENTS TO SETTLE AT 3505 A BUSHEL THE SOYBEAN AND CORN FUTURES CONTRACTS FOR DELIVERY NEXT MONTH SLIPPED 275 CENTS A BUSHEL AND ONE CENT A BUSHEL RESPECTIVELY THE WHITE HOUSE IS IRONING OUT DETAILS OF THE PACKAGE UNVEILED AT THE WEEKEND SUMMIT BETWEEN PRESIDENT CLINTON AND RUSSIAN PRESIDENT BORIS YELTSIN RUSSIA WILL PROBABLY BE GIVEN UP TO SIX YEARS TO BEGIN REPAYING THE 700 MILLION LOAN AND UP TO ANOTHER NINE YEARS TO RETIRE THE LOAN AN AGRICULTURE DEPARTMENT OFFICIAL SAID MOSCOW PLANS TO ARRANGE A FLOOD OF GRAIN TO RUSSIA BEFORE THE HARVEST BEGINS THERE IN JULY THE RUSSIAN TRANSPORTATION SYSTEM DOESN'T HAVE THE CAPACITY TO HANDLE US FOOD AID AND ITS OWN CROPS AT THE SAME TIME THE OFFICIAL SAID SOME GRAIN TRADERS FIGURE THAT THE LOAN WILL PROBABLY ALLOW RUSSIA TO BUY ROUGHLY 60 MILLION BUSHELS OF US CORN UP TO 62 MILLION BUSHELS OF US WHEAT AND ROUGHLY NINE MILLION BUSHELS OF US SOYBEANS THE CLINTON ADMINISTRATION MIGHT EARMARK ITS 194 MILLION DONATION BUDGET FOR EVERYTHING FROM PORK AND DAIRY PRODUCTS TO FLOUR THE HUGE LOAN IS THE FIRST THE US GOVERNMENT IS MAKING UNDER THE FOOD FOR PROGRESS PROGRAM WHICH REQUIRES THAT 75 OF THE US COMMODITIES MOVE ON US OCEAN VESSELS THAT REQUIREMENT MIGHT CONSUME AS MUCH AS 200 MILLION OF THE LOAN BECAUSE US SHIPPERS TEND TO CHARGE TWO TO THREE TIMES THE RATE OF SOME FOREIGN FREIGHTERS SOME GRAIN INDUSTRY OFFICIALS WANT WASHINGTON TO SCUTTLE THE CARGO PREFERENCE REQUIREMENT BUT CONGRESS ISN'T LIKELY TO DO THAT IN PART BECAUSE FOOD AID SHIPMENTS WOULD BE A BOON FOR THE US MARITIME INDUSTRY AND ORGANIZED LABOR INSTEAD CONGRESS WILL PROBABLY BE ASKED TO LIFT THE PROGRAM'S 30 MILLION CAP ON FREIGHT EXPENSES SO THAT RUSSIA CAN PAY US SHIPPERS THE FOOD AID PACKAGE IS DESIGNED TO GIVE RUSSIA TIME TO CLEAR UP ITS BAD DEBTS WITH WESTERN CREDITORS BUT IT ISN'T CLEAR HOW LONG THAT WILL TAKE RUSSIA HASN'T BOUGHT A SIGNIFICANT AMOUNT OF US GRAIN SINCE NOVEMBER WHEN IT BEGAN DEFAULTING ON USBACKED BANK LOANS SO FAR MOSCOW HAS MISSED 6663 MILLION IN PAYMENTS ON THE 42 BILLION IN THREEYEAR LOANS THAT IT AND THE FORMER SOVIET UNION ARRANGED WITH THE HELP OF THE AGRICULTURE DEPARTMENT'S CREDIT GUARANTEE PROGRAM THE DEPARTMENT PROMPTED BANKS TO LEND GRAINBUYING MONEY TO MOSCOW WITH THE PROMISE OF MAKING GOOD ON THOSE DEBTS IF RUSSIA FELL BEHIND ON PAYMENTS AS OF FRIDAY INTERNATIONAL BANKS HAD FILED CLAIMS WITH THE AGRICULTURE DEPARTMENT SEEKING 5402 MILLION FOR THE SOUR RUSSIAN LOANS SO FAR THE DEPARTMENT HAS PAID 3005 MILLION TO THE BANKS LAST WEEK'S AGREEMENT BY WESTERN CREDITORS TO RESCHEDULE RUSSIA'S FOREIGN DEBT INVOLVED ABOUT 11 BILLION OF THE USBACKED BANK LOANS THE CLINTON ADMINISTRATION HASN'T RELEASED DETAILS ABOUT HOW MUCH OF RUSSIA'S GRAIN DEBT WAS DEFERRED BUT AGRICULTURE DEPARTMENT OFFICIALS SAID THE MOVE WASN'T ENOUGH TO GET MOSCOW OUT OF DEFAULT THE DEFAULTS TRIGGERED RUSSIA'S SUSPENSION FROM THE AGRICULTURE DEPARTMENT'S POPULAR CREDIT GUARANTEE PROGRAM MOST BANKS WON'T LEND TO RUSSIA WITHOUT US BACKING IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS A BOUT OF PROFITTAKING SENT GOLD SILVER AND PLATINUM FUTURES PRICES LOWER IN THE WAKE OF LAST WEEK'S STRONG RALLY TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY CLOSED 130 LOWER AT 341 AN OUNCE SILVER FOR MAY DELIVERY CLOSED FIVE CENTS LOWER AT 3918 AN OUNCE THE ACTIVELY TRADED JULY PLATINUM CONTRACT SETTLED 140 LOWER AT 365 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE THERE WAS VERY LITTLE ACTIVITY MAINLY PROFITTAKING IN A THIN MARKET SAID SCOTT MEYERS A SENIOR ANALYST WITH REDEL TRADING IN NEW YORK EVERYBODY WAS WAITING FOR A PAUSE LIKE THIS BUT HE ADDED THAT AS LONG AS CURRENT TECHNICAL SUPPORT LEVELS HOLD PRICES ARE LIKELY TO MOVE HIGHER HE CAUTIONED HOWEVER THAT IF GOLD FUTURES FOR JUNE DELIVERY START SETTLING BELOW 340 THERE COULD BE TROUBLE ENERGY CRUDEOIL FUTURES PRICES FOR MAY FELL SLIGHTLY IN QUIET TRADING ON THE NEW YORK MERCANTILE EXCHANGE TRADERS ARE APPARENTLY BEING CAUTIOUS AHEAD OF AN INFORMAL MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SET FOR THIS WEEKEND IN ADDITION TRADING IS LIGHT BECAUSE OF THE PASSOVER AND EASTER HOLIDAYS THE EXCHANGE WILL BE CLOSED ON GOOD FRIDAY A RASH OF REFINERY CLOSINGS DID SERVE TO CAST A SHADOW ON THE THIN TRADING LOPPING THREE CENTS OFF MAY CRUDE TO FINISH AT 2062 A BARREL HEATING OIL FELL 029 CENT A GALLON TO SETTLE AT 5695 CENTS FOR MAY DELIVERY MAY GASOLINE LOST NEARLY HALF A PENNY 045 CENT TO CLOSE AT 6020 CENTS A GALLON 9304060102 930406 CORRECTIONS & AMPLIFICATIONS STEVE WILHITE GENERAL SALES MANAGER OF VOLKSWAGEN OF AMERICA INC WAS QUOTED IN AN ARTICLE WEDNESDAY AS SAYING THE COMPANY HAD LOST DIRECTION AND IDENTITY IN THE US MARKET THE ARTICLE SHOULD HAVE INDICATED THAT MR WILHITE MADE THIS STATEMENT AT A NEWPRODUCT PREVIEW LAST SUMMER INSTEAD IT INCORRECTLY IMPLIED THAT THE REMARK WAS MADE LAST WEEK SILVIA BIZIO WHO WRITES FOR ITALY'S LA REPUBBLICA NEWSPAPER AND L'ESPRESSO MAGAZINE SAYS THAT WHEN MOVIE STUDIOS FLY FOREIGN JOURNALISTS ON JUNKETS THEY PAY FOR COACH TICKETS NOT FIRST CLASS AS SHE SAYS THEY DO FOR MANY IN THE DOMESTIC PRESS WHEN THE HOLLYWOOD FOREIGN PRESS ASSOCIATION PAYS ITS MEMBERS FLY COACH MS BIZIO SAYS A QUOTE ATTRIBUTED TO HER IN AN ARTICLE IN THE MARCH 26 WALL STREET JOURNAL SPECIAL REPORT ON GLOBAL ENTERTAINMENT INCORRECTLY IMPLIED THAT WHEN STUDIOS FLY FOREIGN JOURNALISTS ON JUNKETS THEY PAY FOR FIRSTCLASS TICKETS 9304060101 930406 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON THIS EVOCATIVE VISION OF MODERN LIFE COMING TO THE STEPPES OF INNER MONGOLIA HAS A LYRICAL QUIRKINESS AND A MESMERIZING CHARM AT THE CENTER IS A YOUNG MONGOL FAMILY STILL LIVING AS ITS ANCESTORS DID HAPPILY SO BUT TEMPTED BY MODERN THINGS MADE AVAILABLE BY INTRUDERS FROM THE SOVIET UNION AND CHINA THINGS LIKE TELEVISIONS BICYCLES CONDOMS AND BASEBALL CAPS IT'S THE KIND OF MOVIE THAT TAKES YOU PLACES YOU'VE NEVER BEEN AND MAKES THE STRANGE AND WONDERFUL EXPERIENCES YOU HAVE THERE FEEL LIKE YOUR OWN YOU COULD CALL THIS A COMINGOFMIDDLEAGE MOVIE THE STORY OF A SUCCESSFUL SOAPOPERA ACTRESS LEFT CRIPPLED WHEN A NEW YORK CITY TAXI HITS HER FORCED BY CIRCUMSTANCE TO RECONSIDER LIFE SHE GOES BACK HOME TO THE LOUISIANA BAYOU TO DO IT SHE FACES HER OWN HARD MEMORIES WITH THE NURSE SHE HIRES A WOMAN WITH HER OWN MUDDLED PAST TO CONTEND WITH WRITER AND DIRECTOR SAYLES FILTERS ALL THIS THROUGH HIS OWN PARTICULAR URBAN WIT AND HAS COME UP WITH A FRESH KIND OF WOMAN'S PICTURE ONE THAT IS PERCEPTIVE AND ENTERTAINING MR RODRIGUEZ WHO MADE THIS PICTURE ON A SHOESTRING CLEARLY HAS WATCHED AND ABSORBED THE TECHNIQUE OF MANY MANY ACTION PICTURES JUDGING FROM HIS SHREWDLY MANAGED CHASE SCENES AND SHOOTOUTS BUT THERE'S A WHIMSICAL TOUCH TOO A POETIC LIFT THAT MAKES YOU HAPPY TO INDULGE THE PICTURE'S PULPINESS WHILE ENJOYING ITS CHARM EL MARIACHI IS A SHREWD COMBINATION OF ACTION AND WISTFULLY COMIC ROMANCE IN THIS LYRICAL RENDITION OF LAURA ESQUIVEL'S NOVEL SET ON A BORDER RANCH IN 1910 DURING THE MEXICAN REVOLUTION EVERYTHING BEGINS AND ENDS IN THE KITCHEN POLITICS AND ROMANCE PASS BY LIKE DREAMS TRUTH EMERGES IN COOKING HERE REPRESSION AND REVENGE ARE ACTED OUT VIVIDLY OFTEN AT THE TABLE MEAN SISTERS ARE PUNISHED WITH FOODS CAUSING FLATULENCE SECRET LOVERS MEET VIA THEIR TASTE BUDS IT'S SUBTLE UNLIKELY MATERIAL FOR A MOVIE BUT MS ARMSTRONG AND THE SCREENWRITER HELEN GARNER HAVE FOUND DEPTH EVEN PROFUNDITY IN THE EMOTIONAL TERRAIN OF THEIR CHARACTERS OCCUPANTS OF AN UNCONVENTIONAL AUSTRALIAN HOUSEHOLD THIS ABSORBING INTELLIGENT PICTURE TAKES IN ALL THE POSSIBLE WAYS PEOPLE TRY TO FIND THEIR PLACE THE PLEASURES ARE IN ITS DETAILS AND THEY ARE VERY PLEASURABLE INDEED A HEADLINE INSPIRED THE STORY MOTHER SELLS EIGHTYEAROLD DAUGHTER INTO PROSTITUTION DIRECTOR AMELIO HAS USED THIS SORRY FACT TO FIND SOME TRUTH ABOUT THE DISINTEGRATION OF CULTURE AND FAMILY IN MODERN ITALY WITHOUT PREACHING AND WITHOUT TITILLATION FILMED WITHOUT FLOURISH STOLEN CHILDREN HAS A POWERFUL EMOTIONAL EFFECT THAT'S ALMOST PHYSICAL LIKE CERTAIN FOODS THAT DON'T ASSERT THEMSELVES UNTIL YOU'VE HAD A CHANCE TO FULLY ABSORB NUANCE IN TEXTURE AND SMELL 9304060100 930406 WHO'S NEWS LOCKHEED CORP LOCKHEED CORP CALABASAS CALIF JOHN F EGAN AND JOHN MANUEL WERE ELECTED CORPORATE VICE PRESIDENTS OF THIS MILITARY AEROSPACE AND ELECTRONICS CONCERN DR EGAN 58 YEARS OLD BECOMES VICE PRESIDENT CORPORATE DEVELOPMENT SUCCEEDING RICHARD W TAYLOR WHO RECENTLY BECAME VICE PRESIDENT GROUP BUSINESS STRATEGY FOR LOCKHEED'S AERONAUTICAL SYSTEMS GROUP DR EGAN HAD BEEN GROUP VICE PRESIDENT PLANNING AND TECHNOLOGY FOR THE ELECTRONIC SYSTEMS GROUP JOHN MANUEL 53 WAS NAMED VICE PRESIDENT BUSINESS DEVELOPMENT FILLING A LONGSTANDING VACANCY HE HAD BEEN STAFF VICE PRESIDENTDOMESTIC BUSINESS DEVELOPMENT 9304060099 930406 BUSINESS BRIEF ADOLPH COORS CO BEER SALES TO DISTRIBUTORS STRENGTHEN AT COORS UNIT COORS BREWING CO A UNIT OF ADOLPH COORS CO SAID ITS FIRSTQUARTER BEER SALES TO DISTRIBUTORS ROSE 41 FROM YEAREARLIER SALES BUT THE GOLDEN COLO COMPANY SAID THE INCREASE CAME FROM A CHANGE IN THE COMPANY'S DISTRIBUTION SYSTEM NOT FROM ANY CHANGE IN THE COMPANY'S MARKET SHARE THE COMPANY SAID THAT REMOVALS OR SALES FROM DISTRIBUTORS AND WHOLESALERS TO RETAILERS DECLINED ABOUT 2 FOR THE QUARTER IN LINE WITH INDUSTRY TRENDS THIS YEAR THE COMPANY REPORTED SALES OF 3742000 BARRELS FOR THE QUARTER UP FROM 3596000 BARRELS IN THE YEAREARLIER QUARTER 9304060098 930406 LEISURE & ARTS INDONESIAN TV NO LONGER JUST A SUHARTO FAMILY AFFAIR BY MARGOT COHEN LAMPUNG SUMATRA WHEN NEWS BROKE IN DECEMBER THAT LAMPUNG WAS GETTING ITS OWN TV STATION VILLAGE ROADS AND CITY PAVEMENTS SWARMED WITH BORNAGAIN ANTENNA SALESMEN THEY CLEANED UP FAST STARVED FOR AN ALTERNATIVE TO THE GOVERNMENT CHANNEL TVRI EVEN HARDPRESSED FARMERS MANAGED TO SCRAPE UP THE REQUIRED 17000 RUPIAH 850 GIVE OR TAKE A LITTLE BARGAINING THE JAN 1 DEBUT OF ANTEVE MADE A SPLASH IN THIS INDONESIAN PROVINCE WHERE MOST PEOPLE CAN'T AFFORD THE 450 DISH THAT GIVES ACCESS TO JAKARTABASED COMMERCIAL TV OR INTERNATIONAL GIANTS LIKE CNN AND BBCTV BUT THE NEW STATION ALSO SIGNALS SWEEPING CHANGE THROUGHOUT INDONESIA'S BROADCAST INDUSTRY WHERE A PACK OF CONGLOMERATES IS ARE POISED TO BUST UP THE SUHARTO FAMILY'S BOOBTUBE MONOPOLY ANTEVE THE FIRST OPERATION UP AND RUNNING IS BACKED BY ABURIZAL BAKRIE A PROMINENT MUSLIM INDUSTRIALIST AND AGUNG LAKSONO AN OFFICIAL OF THE RULING GOLKAR PARTY MINUTES AWAY FROM THE 6 PM OPENING BROADCAST ONE RECENT SATURDAY THE STATION'S LOCAL HEADQUARTERS SEEM DESERTED SAVE FOR ONE YOUNG WOMAN WHO DASHES MADLY DOWN A CORRIDOR AND DISAPPEARS WITH A SLAM OF A DOOR THE GUARDS HUDDLE AROUND THEIR TV SET IT'S SHOW TIME A QUICK SLIDE MONTAGE RUSHES ONSCREEN INTRODUCED BY THE ANTEVE LOGO ONE MOMENT THERE ARE FOUR ELEPHANTS PLAYING SOCCER NEXT COMES A LOVELY SUNSET THEN FIREWORKS BUT HOLD ON WHAT'S THAT BALINESE DANCER DOING HERE AREN'T THOSE GUYS FROM IRIAN JAYA A MOMENT LATER A WINSOME ANNOUNCER APPEARS ONSCREEN WITH A STIFF BLACK HAIRDO AND LONG GOLD EARRINGS SHE APOLOGIZES FOR THE STATION'S POSSIBLE SHORTCOMINGS BUT ASSURES VIEWERS OF ALL AGES OF A GREAT LINEUP GFORCE AN AMERICAN CARTOON MAX GLICK AN AMERICAN CHILDREN'S SERIAL GOVERNMENTPRODUCED NEWS ALLEY CAT AN AMERICAN MOVIE THEN MORE GOVERNMENT NEWS BEFORE SIGNOFF AT 930 PM THE GUARDS SETTLE IN TO WATCH A UFO IN THE SHAPE OF A PREHISTORIC MONSTER ROARS THE TUBE BACK IN JAKARTA HERBERT BAKO ANTEVE'S GENERAL MANAGER OF OPERATIONS EXPLAINS EVERYTHING IS PACKAGED IN JAKARTA AND COURIERED THERE EVEN THE ANNOUNCER A LAMPUNG NATIVE WHO ABANDONED A CAREER IN AGRICULTURE TAPED HER BIT IN A JAKARTA PRODUCTION HOUSE AS FOR THE DIZZYING SLIDE SHOW IT'S A TIPOFF TO THE STATION'S NATIONAL AMBITIONS WITH PLANS TO SINK UP TO 100 MILLION INTO ANTEVE OVER THE NEXT TWO YEARS THE OWNERS HAVE NO INTENTION OF STICKING TO LAMPUNG WHERE THEY CAN REACH ONLY SOME 400000 HOUSEHOLDS BY THE END OF THE YEAR THEY PLAN TO EXPAND THE NETWORK TO PALEMBANG AND YOGYAKARTA WITH EMPHASIS ON ENTERTAINMENT AND SPORTS PROGRAMMING ULTIMATELY THEY HAVE THEIR EYES ON THE PRIZE JAKARTA TARGET FOR THE FATTEST ADVERTISING BUDGETS LAMPUNG A FERRY RIDE AWAY FROM WEST JAVA IS JUST A STEPPING STONE WE'D LIKE TO EXPOSE THE LOCAL AREA AS FAR AS SCENERY MR BAKO SAYS MAYBE WE CAN COMBINE THAT WITH FILLERS THIS IS NOT WHAT LOCAL VIEWERS HAVE IN MIND THEY SHOULD TALK ABOUT THE ACTUAL PROBLEMS OF THE PEOPLE OF LAMPUNG SAYS ILHAM DJAMHARI A COMMUNICATIONS LECTURER AT LAMPUNG'S INSTITUTE OF SOCIAL AND POLITICAL SCIENCE TELEVISION CAN BE A SOURCE OF INSPIRATION FOR THE PEOPLE IT DOESN'T HAVE TO BE ONEWAY INFORMATION THERE CAN BE SOME GIVE AND TAKE SOME 50 PEOPLE A DAY HAVE BEEN SHOWING UP AT THE LAMPUNG STATION OFFERING THEIR SERVICES AS ANNOUNCERS SINGERS OR TECHNICIANS LAMPUNG'S GRAVELVOICED GOVERNOR POEDJONO PRANYOTO SEES THE POSSIBILITY OF HOSTING A TALK SHOW I'LL HAVE MY OWN STYLE HE SAYS BRUSHING OFF COMPARISONS TO PHIL AND OPRAH MR POEDJONO WOULD LIKE TO SEE 30 OF ANTEVE'S PROGRAMMING DEVOTED TO PROVINCIAL DEVELOPMENT EVEN SENSITIVE ISSUES SUCH AS LAND DISPUTES WOULD NOT BE OFFLIMITS HE ADDS IF THEY ARE APPROACHED OBJECTIVELY SUCH HOPES UNDERSCORE THE ENORMOUS POTENTIAL OF LOCAL TELEVISION TO TRANSFORM INDONESIA INTO A MORE OPEN SOCIETY IN A COUNTRY WHERE POLITICAL ORGANIZING AT THE VILLAGE LEVEL IS FORBIDDEN EXCEPT DURING ELECTION CAMPAIGNS EVERY FIVE YEARS THE BULK OF THE COUNTRY'S 183 MILLION PEOPLE HAVE FEW OUTLETS FOR DEBATE DUE TO STRONG ORAL TRADITIONS NEWSPAPER AND MAGAZINE CIRCULATION REMAIN RELATIVELY TINY OUTSIDE OF JAKARTA RADIO STATIONS MUST RELAY ONLY THE OFFICIAL VERSION OF THE NEWS TELEVISION UNTIL NOW HAS BEEN AN EVEN MORE OFFICIALLY STRAITJACKETED MEDIUM THE INDONESIAN GOVERNMENT FIRST HARNESSED THE POWER OF TELEVISION IN HOPES OF UNIFYING AND PACIFYING THE DIVERSE ARCHIPELAGO WITH THE HELP OF THE 1976 LAUNCH OF THE PALAPA SATELLITE TVRI SPREAD THE NATIONAL LANGUAGE BAHASA INDONESIA AND PROMOTED POLICIES SUCH AS FAMILY PLANNING AND EFFICIENT RICE PRODUCTION EACH VILLAGE CAPTAIN WAS GIVEN A TV SET AND LOCAL AUTHORITIES MADE SURE EVERYBODY WATCHED NEWS BROADCASTS STILL LEAN HEAVILY ON OFFICIAL SPEECHES AND SEMINARS SUDDENLY IN 1989 TELEVISION BECAME A FAMILY AFFAIR THE PRESIDENT'S SECOND SON BAMBANG TRIHATMODJO ESTABLISHED JAKARTA'S FIRST COMMERCIAL STATION RCTI AN AFFILIATE IN THE EAST JAVA CITY OF SURABAYA SOON FOLLOWED NEXT CAME SUHARTO DAUGHTER SITI HARDIJANTI RUKMANA PIGGYBACKING ON THE GOVERNMENT'S TRANSMITTERS NATIONWIDE TO LAUNCH TPI IN 1991 A COMMERCIAL STATION OSTENSIBLY DEVOTED TO EDUCATIONAL PROGRAMMING NO 1 SON SIGIT HARJOJUDANTO WAS AWARDED A TIDY LITTLE MONOPOLY ON COLLECTING TAXES FROM TVSET OWNERS IMPORTS ACCOUNT FOR SOME 80 FOR RCTI'S PROGRAMMING WHILE TPI CONCENTRATES ON LOCAL SHOWS DESPITE THE SUHARTOFAMILY TIES THE TWO STATIONS HAVE VENTURED INTO POLITICALLY MURKY WATERS AS THE GOVERNMENT GUARDS ITS MONOPOLY ON NEWS THE COMMERCIAL STATIONS HAVE SIDESTEPPED THIS RESTRICTION BY USING A FEATURE FORMAT ZEROING IN ON INDIVIDUALS THE SQUATTER UPSET WHEN HIS HOME IS BULLDOZED TO MAKE WAY FOR AN OFFICE BUILDING THE FARMER ANGERED BY ORDERS TO BURN HIS CLOVE CROP DUE TO OVERSUPPLY ON TALK SHOWS ECONOMISTS BLUNTLY CRITICIZE THE NATION'S DEBT OVERLOAD AND OTHER PROBLEMS NOW THAT THE GOVERNMENT HAS GRANTED A NEW NATIONAL LICENSE AND SIX NEW LOCAL TV LICENSES IN AS MANY CITIES SUCH SOCIAL SCRUTINY COULD INTENSIFY YET SOME OBSERVERS NOTE THAT THE LOCAL MEDIA OFTEN SUFFER FROM HEAVIER CENSORSHIP THAN THEIR NATIONAL COUNTERPARTS WILL THE PEOPLE BE ABLE TO SPEAK ON ANTEVE NOT LIKELY SAYS BAMBANG EDY POERNOMO DIRECTOR OF RADIO YUDHISTIRA LAMPUNG'S TOP RADIO STATION IT'S AN IMPOSSIBLE DREAM SAYS MR BAKO WE DON'T WANT TO STEP ON ANYBODY'S TOES THE BROADCAST BOOM IS LIKELY TO INTENSIFY THE DEBATE OVER WESTERNIZATION OF INDONESIAN CULTURE THE GOVERNMENT SAYS IT IS GIVING NEW FREEDOM TO PRIVATE INDONESIAN STATIONS TO STAVE OFF THE WESTERN INFLUENCES OF CNN AND ITS ILK WE ARE WORRIED THERE WILL BE AN INFILTRATION OF IDEAS FROM THEM AN INFORMATION MINISTRY OFFICIAL RECENTLY TOLD PROSPEK A JAKARTA MAGAZINE FOLLOWING COMPLAINTS FROM RELIGIOUS LEADERS RCTI RECENTLY CUT BACK ON POPULAR VIDEO CLIPS OF HEAVYMETAL BANDS WHOSE VIOLENT HALFNAKED CONTORTIONS WERE DEEMED UNINDONESIAN THE PROGRAMMING RATIO MAY SHIFT AS A NEW GENERATION ACQUIRES HANDSON TRAINING SINCE INDEPENDENT RATINGS SHOW THAT INDONESIANS LIKE LOCAL SHOWS THE MOST POPULAR SHOW AFTER MACGYVER AN AMERICAN WINNER WORLDWIDE IS SARTIKA THE HEARTWARMING DRAMA OF A YOUNG DOCTOR WHO SERVES RURAL HAMLETS IN WEST JAVA GRACIOUSLY ACCEPTING EGGS AND VEGETABLES AS PAYMENT FOR THOSE WITH MARTIAL TASTES THE INDONESIAN MILITARY IS SERIOUSLY THINKING OF STARTING ITS OWN TV NETWORK THAT WAY EVERYONE CAN START THE DAY EXERCISING WITH THE CADETS THOSE OVERHEAD STRETCHES WITH M16S HOWEVER ARE BEST LEFT TO THE BOYS IN GREEN MS COHEN IS A JAKARTABASED JOURNALIST 9304060097 930406 BUSINESS BRIEF NEWELL CO FIRM AGREES TO BUY LEVOLOR A MAKER OF WINDOW BLINDS NEWELL CO SAID IT AGREED DEFINITIVELY TO ACQUIRE CLOSELY HELD LEVOLOR CORP THE MAKER OF WINDOW BLINDS NEWELL OF FREEPORT ILL HAS INTERESTS IN A VARIETY OF CONSUMER INDUSTRIAL AND OFFICESUPPLY PRODUCTS IT DIDN'T DISCLOSE TERMS OF THE ACCORD BUT SAID THAT LEVOLOR'S 1992 SALES WERE ABOUT 180 MILLION LEVOLOR OF SUNNYVALE CALIF WAS FAMILY OWNED UNTIL 1988 WHEN IT WAS ACQUIRED FOR 135 MILLION BY A GROUP OF INVESTORS LED BY DEAN WITTER CAPITAL CORP A SEARS ROEBUCK & CO UNIT 9304060096 930406 BUSINESS BRIEF RR DONNELLEY & SONS CO COMPANY SIGNS 5YEAR DEAL TO PRINT SUNDAY COUPONS RR DONNELLEY & SONS CO SAID IT SIGNED A FIVEYEAR CONTRACT TO PRINT SUNDAY NEWSPAPER COUPON INSERTS FOR THE NEWS AMERICA FSI UNIT OF NEWS CORP DONNELLEY ONE OF THE WORLD'S BIGGEST COMMERCIAL PRINTERS DIDN'T DISCLOSE TERMS OF THE AGREEMENT BEYOND SAYING THAT IT WILL PRINT A SIGNIFICANT PERCENTAGE OF THE COUPON PAGES KNOWN AS FREESTANDING INSERTS THE CONTRACT BEGINS IN SEPTEMBER NEWS AMERICA CURRENTLY DISTRIBUTES FSIS TO 55 MILLION HOMES THROUGH 390 SUNDAY NEWSPAPERS REACHING 58 OF ALL US HOUSEHOLDS DONNELLEY SAID THE PRINTING CONCERN SAID IT WILL INSTALL NEW PRESSES IN ITS SOUTH DAYTONA FLA AND LOS ANGELES PLANTS AND HIRE 200 ADDITIONAL EMPLOYEES TO SERVICE THE NEW CONTRACT 9304060095 930406 FINANCING BUSINESS UNIGATE PLC UNIGATE PLC LONDON SAID ITS BLACKEYED PEA RESTAURANTS INC A DALLAS UNIT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 154 MILLION COMMON SHARES AT AN ESTIMATED PRICE OF 15 TO 17 A SHARE THE COMPANY SAID THE OFFERING IS THROUGH UNIGATE HOLDINGS NV A UNIT OF UNIGATE OF THE SHARES 124 MILLION WILL BE OFFERED IN THE US AND THE REST IN INTERNATIONAL MARKETS THE COMPANY SAID THE RESTAURANT CHAIN SAID IT WILL NOT RECEIVE ANY PROCEEDS FROM THE OFFERING UNLESS UNDERWRITERS EXERCISE THE 15 OVERALLOTMENT OPTION THE UNDERWRITERS FOR THE OFFERING ARE GOLDMAN SACHS & CO WERTHEIM SCHRODER & CO AND MONTGOMERY SECURITIES 9304060094 930406 INTERNATIONAL EC'S TALKS WITH RUSSIA LUXEMBOURG FOREIGN MINISTERS FROM THE 12 EUROPEAN COMMUNITY COUNTRIES AGREED IN A MEETING HERE TO WIDEN THEIR TALKS WITH RUSSIA ON CLOSER RELATIONS TO INCLUDE BETTER TRADE TERMS AND THE PROSPECT OF AN EVENTUAL FREETRADE PACT BUT SEPARATELY THE EC COMMISSION IN BRUSSELS ANNOUNCED AN INVESTIGATION INTO ALLEGED DUMPING OF UNWROUGHT ALUMINUM AND ALUMINUM ALLOY EXPORTS FROM RUSSIA AND OTHER FORMER SOVIET REPUBLICS THE DUMPING INVESTIGATION WHICH UNDERSCORES THE LIMITS OF THE EC'S GENEROSITY IN OPENING ITS MARKETS FOLLOWS A COMPLAINT FROM ONE EC GOVERNMENT CHARGING THAT EXPORTS OF THE ALUMINUM PRODUCTS ROSE TO 9 OF THE COMMUNITY MARKET IN 1992 FROM 16 IN 1990 AND THAT THE AVERAGE PRICE UNDERCUT EC PRODUCERS BY 23 LAST YEAR 9304060091 930406 BUSINESS BRIEF CANDELA LASER CORP COMPANY EXPECTS TO POST FISCAL THIRDQUARTER LOSS CANDELA LASER CORP SAID IT EXPECTS TO REPORT A LOSS FOR ITS FISCAL THIRD QUARTER ENDED APRIL 3 AS AN UNSETTLED OUTLOOK FOR HEALTH CARE REFORM CAUSED SOME CUSTOMERS TO DEFER PURCHASES IT'S BECOME EASY IN THE CURRENT ENVIRONMENT FOR CUSTOMERS TO POSTPONE MAJOR CAPITAL EXPENDITURES SAID RICHARD J OLSEN VICE PRESIDENT REFERRING TO CLINTON ADMINISTRATION HEALTH CARE REFORM EFFORTS THE WAYLAND MASS MAKER OF MEDICAL LASERS ALSO SAID IT WOULD TAKE A THIRDQUARTER WRITEDOWN FOR INVENTORIES RELATED TO SOME OPHTHALMIC PRODUCTS IN CLINICAL TRIALS AND SEPARATELY ESTABLISH RESERVES FOR A RETROFIT PROGRAM FOR ITS PIGMENTEDLESION LASER PRODUCT CANDELA DIDN'T PROVIDE AN ESTIMATE OF THE EXPECTED LOSS OR WRITEDOWNS IN THE YEAR EARLIER THIRD QUARTER IT REPORTED NET OF 964000 OR 13 CENTS A SHARE INCLUDING A TAXRELATED 270000 EXTRAORDINARY CREDIT ON SALES OF 92 MILLION 9304060090 930406 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MARCH 24 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9304060089 930406 LAW LEGAL BEAT SCHOOL SYSTEM IN ALABAMA GETS F' FROM COURT BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL AN ALABAMA STATE COURT RULED THAT THE STATE'S ENTIRE PUBLIC SCHOOL SYSTEM IS UNCONSTITUTIONAL BECAUSE IT DOESN'T GIVE STUDENTS AN ADEQUATE EDUCATION THE CASE OPENS A NEW FRONT FOR PLAINTIFFS AIMING TO REFORM PUBLIC SCHOOL SYSTEMS THROUGH THE COURTS MORE THAN A DOZEN COURTS IN OTHER STATES HAVE RULED THAT SCHOOL FINANCING PROCEDURES DISCRIMINATE AGAINST POOR STUDENTS BUT THE ALABAMA DECISION WHICH CAME LAST WEEK GOES A STEP FURTHER THE JUDGE IN ESSENCE RULED THAT ALABAMA'S SCHOOLS AREN'T GOOD ENOUGH IN CASES PENDING IN LOUISIANA CONNECTICUT MASSACHUSETTS AND NEW YORK PLAINTIFFS ARE MAKING SIMILAR ARGUMENTS THE REAL ISSUE HERE IS WHETHER THE SCHOOLS' DEFICIENCIES AND CONDITIONS RISE TO THE LEVEL OF DEPRIVATIONS OF CONSTITUTIONAL AND STATUTORY RIGHTS JUDGE EUGENE REESE WROTE IN A 125PAGE OPINION IN THE OPINION OF THE COURT THEY DO THE ALABAMA STATE CONSTITUTION REQUIRES THE LEGISLATURE TO MAINTAIN A LIBERAL SYSTEM OF PUBLIC SCHOOLS THROUGHOUT THE STATE THE JUDGE SAID JUDGE REESE WROTE THAT HE FOUND TESTIMONY ABOUT SOME ALABAMA SCHOOLS GRAPHIC AND TROUBLING HE SAID THE ACADEMIC PERFORMANCE OF MANY STUDENTS FALLS SHORT OF BASIC STANDARDS AND CITED ONE EXPERT'S TESTIMONY ON ALABAMA'S EXTRAORDINARILY HIGH DROPOUT RATE HE ALSO DESCRIBED SCHOOLS THAT ARE INFESTED WITH TERMITES THAT CAN'T OFFER MUSIC OR ART CLASSES AND THAT REQUIRE STUDENTS TO SHARE TEXTBOOKS THE MOST CONTROVERSIAL PART OF THE DECISION SOME LAWYERS AND EDUCATION SPECIALISTS SAID IS THAT IT SPECIFIES CRITERIA NECESSARY FOR SCHOOLS TO MEET CONSTITUTIONAL MUSTER SUCH CRITERIA INCLUDE PROVIDING STUDENTS WITH AN OPPORTUNITY TO ATTAIN SUFFICIENT SKILLS TO COMPETE WITH OTHER STUDENTS THROUGHOUT THE WORLD AND SUFFICIENT UNDERSTANDING OF THE ARTS TO ENABLE EACH STUDENT TO APPRECIATE HIS OR HER CULTURAL HERITAGE AND THE CULTURAL HERITAGES OF OTHERS THE JUDGE WROTE THIS IS JUST UTTER NONSENSE SAID CHARLES MURRAY WHO SPECIALIZES IN SOCIAL POLICY AND EDUCATION FOR THE AMERICAN ENTERPRISE INSTITUTE A WASHINGTON THINKTANK THE OPINION SHOWS A GREAT DEAL OF IGNORANCE ABOUT EDUCATION HE SAID NOBODY HAS IT WITHIN THEIR POWER TO SAY YOU SHALL HAVE AN EDUCATION SYSTEM WHICH SHALL MAKE ALL OF ITS STUDENTS INTERNATIONALLY COMPETITIVE BUT LAWYERS SAID COURTS IN OTHER STATES ARE LIKELY TO MAKE SIMILAR RULINGS UNLESS LEGISLATURES SET SPECIFIC STANDARDS AND HOLD SCHOOLS TO THEM I THINK COURTS WOULD LIKE TO GET OUT OF THE BUSINESS BUT UNLESS SOMEONE TAKES CONTROL OF THE PROBLEM THE COURTS FEEL THAT THEY HAVE TO RESPOND TO THE CONSTITUTIONAL MANDATE SAID ERIC NEISSER A PROFESSOR AT RUTGERS UNIVERSITY LAW SCHOOL IN NEWARK NJ IN RECENT YEARS COURTS HAVE REJECTED SCHOOL FINANCING PROCEDURES IN TEXAS KENTUCKY KANSAS NEW JERSEY WISCONSIN CALIFORNIA CONNECTICUT WASHINGTON WEST VIRGINIA WYOMING ARKANSAS AND MONTANA MOST OF THOSE CASES HOWEVER FOCUSED ON WHETHER SCHOOL SYSTEMS VIOLATED THE STATE CONSTITUTION BECAUSE OF WIDE DISPARITIES IN FUNDING PROVIDED FOR RICH AND POOR DISTRICTS IN ADDITION TO RULING THAT THE ALABAMA SCHOOLS ARE INADEQUATE JUDGE REESE ALSO SAID THE SCHOOL FUNDING SYSTEM IS UNCONSTITUTIONAL THE ALABAMA DECISION IS A LANDMARK BECAUSE IT RECOGNIZES THAT CHILDREN HAVE A RIGHT NOT ONLY TO AN EQUITABLE EDUCATION BUT ALSO TO AN ADEQUATE EDUCATION SAID HELEN HERSHKOFF A LAWYER FOR THE AMERICAN CIVIL LIBERTIES UNION WHICH REPRESENTED PUBLIC SCHOOL CHILDREN WHO WERE PLAINTIFFS IN THE CASE JUDGE REESE'S DECISION ORDERS SCHOOL OFFICIALS TO ESTABLISH ORGANIZE AND MAINTAIN A SYSTEM OF PUBLIC SCHOOLS THAT PROVIDES EQUITABLE AND ADEQUATE EDUCATIONAL OPPORTUNITIES TO ALL SCHOOLAGE CHILDREN HE HAS ORDERED A CONFERENCE ON JUNE 9 TO ESTABLISH A TIMETABLE FOR REMEDYING THE SYSTEM IN A STATEMENT ALABAMA GOV GUY HUNT SAID THE STATE DOESN'T PLAN TO APPEAL THE JUDGE'S DECISION HE SAID THAT IN RESPONSE TO THE DECISION HE WOULD APPOINT A TASK FORCE TO RECOMMEND WAYS TO IMPROVE THE SCHOOLS URI GELLER A SELFPROCLAIMED PSYCHIC KNOWN FOR HIS SPOONBENDING POWERS WAS ORDERED TO PAY SANCTIONS OF 106434 TO A GROUP HE SUED FOR LIBEL JUDGE STANLEY HARRIS IN FEDERAL COURT IN WASHINGTON AWARDED THE SANCTIONS AFTER DISMISSING MR GELLER'S SUIT AGAINST THE COMMITTEE FOR THE SCIENTIFIC INVESTIGATION OF CLAIMS OF THE PARANORMAL WHICH SEEKS TO DEBUNK PSYCHIC PHENOMENA MR GELLER SUED THE GROUP IN 1991 AFTER A MEMBER OF THE ORGANIZATION RIDICULED HIS PSYCHIC POWERS AS MERE SLEIGHT OF HAND THE COMMITTEE BASED IN BUFFALO NY ARGUED THAT THE SUIT SHOULD BE DISMISSED BECAUSE OF FREESPEECH CONCERNS AND BECAUSE THE SUIT WAS PART OF A PATTERN OF HARASSMENT BY MR GELLER SAID JAMES GROSSBERG A WASHINGTON ATTORNEY FOR THE COMMITTEE THE JUDGE SAID IN HIS DECISION THAT HE DISMISSED THE CASE BECAUSE MR GELLER'S ATTORNEYS FAILED TO MEET DEADLINES SET BY THE COURT ALTHOUGH HE DIDN'T BASE HIS RULING ON THE MERITS OF THE CASE THE JUDGE SAID IN A FOOTNOTE IN HIS DECISION THAT THE MERITS OF THE MOTIONS WEIGH HEAVILY IN THE COMMITTEE'S FAVOR THE SANCTIONS ARE THE LEGAL FEES AND OTHER EXPENSES THE COMMITTEE SPENT IN FIGHTING THE SUIT MR GELLER'S CLAIMS AGAINST JAMES RANDI THE MEMBER OF THE GROUP WHO CRITICIZED MR GELLER'S POWERS ARE STILL PENDING MR RANDI A MAGICIAN WHO SPECIALIZES IN REPLICATING SOCALLED PSYCHIC FEATS RESIGNED FROM THE GROUP AFTER THE SUIT WAS FILED BALTIMORE ATTORNEY RICHARD WINELANDER REPRESENTING MR GELLER SAID HE HAS FILED A REQUEST ASKING THE JUDGE TO RECONSIDER HIS DECISION MR WINELANDER SAID THE GROUP HELD MR RANDI OUT AS THEIR HIT MAN THEY HAVE TO BE RESPONSIBLE FOR WHAT HE DID WHO'S NEWS SUSAN HACKETT WAS NAMED GENERAL COUNSEL OF THE AMERICAN CORPORATE COUNSEL ASSOCIATION A WASHINGTONBASED ORGANIZATION FOR INHOUSE ATTORNEYS ASIAN ADDITION SEATTLE LAW FIRM PERKINS COIE OPENED AN OFFICE IN HONG KONG ROBERT MUCKLESTONE WILL BE RESIDENT PARTNER IN THE NEW BRANCH 9304060088 930406 INTERNATIONAL BRIEF PORSCHE AG COMPANY POSTS SHARP DROP IN SALES FOR THE FIRST HALF GERMAN SPORTS CAR MAKER PORSCHE AG CONFIRMED REPORTS OF A SHARP DROP IN SALES FOR THE FIRST HALF OF THE CURRENT FISCAL YEAR ENDING JULY 31 THE GERMAN MAGAZINE DER SPIEGEL HAD REPORTED THAT DOMESTIC UNIT SALES FELL 47 IN THE AUGUSTFEBRUARY PERIOD NEWCAR SALES DROPPED 17 IN THE US MARKET AND 32 IN THE REMAINING EXPORT MARKETS PORSCHE STOCK FELL 28 TO 518 MARKS 32354 A SHARE ON THE NEWS THE COMPANY IN STUTTGART WOULDN'T DIRECTLY CONFIRM THE DER SPIEGEL ARTICLE'S ASSERTION THAT PORSCHE'S LOSS IN THE CURRENT FISCAL YEAR COULD EXCEED THE 240 MILLION MARK 1499 MILLION DEFICIT PROJECTED BY INDUSTRY ANALYSTS IN JANUARY PORSCHE SAID THE LOSS IN THE FIRST HALF TOTALED 120 MILLION MARKS AT THE TIME ANALYSTS ESTIMATED THE LOSS FOR THE FULL FISCAL YEAR WILL BE 240 MILLION MARKS 9304060087 930406 LEISURE & ARTS BOOKSHELF A DYNAMO NAMED MAX BY ROGER KIMBALL HE ONCE SAID THAT HIS MOTTO WAS ACT JUSTLY LOVE MONEY WALK HUMBLY IT WAS PARTLY A JOKE AS ANNE CHISHOLM AND MICHAEL DAVIE SHOW IN THEIR PERCEPTIVE AND EVENHANDED BIOGRAPHY LORD BEAVERBROOK A LIFE KNOPF 589 PAGES 30 ACTING JUSTLY WAS NOT EXACTLY LORD BEAVERBROOK'S LEADING CHARACTERISTIC HE WASN'T KNOWN AS BEAVERCROOK OR JUST CROOKS TO SOME FRIENDS FOR NOTHING AND AS FOR HUMILITY YOU WOULD SOONER CALL NIAGARA FALLS HUMBLE PRESS BARON ENTREPRENEUR POLITICIAN DIPLOMAT HISTORIAN SOCIETY GADABOUT THE STORY OF LORD BEAVERBROOK IS THE STORY OF A HUMAN DYNAMO BORN WILLIAM MAXWELL AITKEN IN NEW BRUNSWICK CANADA IN 1879 LORD BEAVERBROOK MIGHT HAVE STEPPED OUT OF THE PAGES OF HORATIO ALGER OR SOME SAID OUT OF CITIZEN KANE LIKE HIS SCOTTISHBORN FATHER A GODFEARING PRESBYTERIAN MINISTER LORD BEAVERBROOK WAS ONE OF 10 CHILDREN HIS FAMILY WAS NEVER AS POOR AS HE LIKED TO MAKE OUT LATER BUT LIFE WAS MODEST ENOUGH YOUNG MAX AITKEN MADE THE BEST OF IT AND SOON FLED PERPETUALLY RESTLESS HE WAS NEVER A GOOD STUDENT YET EVEN IN CHILDHOOD HE WAS ALWAYS ON THE LOOKOUT FOR WAYS OF MAKING MONEY BY THE TURN OF THE CENTURY MAX WAS IN HALIFAX WORKING WITH VARIOUS FINANCIERS IN 1901 HE EARNED HIS FIRST REAL MONEY A 10000 FEE FOR ARRANGING THE ACQUISITION OF A BANK BEFORE LONG HE WAS A MULTIMILLIONAIRE THE RANGE OF HIS ACTIVITIES WAS STAGGERING HE STARTED COMPANIES IN THE CARIBBEAN AND BOUGHT AND SOLD MONTREAL TRUST CO FOR A 200000 PROFIT INDUSTRIAL CANADA WAS BUILT ON THE COMPANIES HE HELPED TO CREATE HE MASTERMINDED THE FORMATION OF CANADA CEMENT CO STEEL CO OF CANADA CAR AND FOUNDRY CO CALGARY POWER CO AND WESTERN CANADA POWER CO ALONG THE WAY HE GOT MARRIED HAD THREE CHILDREN STARTED A MAGAZINE BRIEFLY ACQUIRED CONTROL OF ROLLSROYCE AND SPENT MUCH TIME PLAYING THE STOCK MARKET BUT MAX AITKEN WAS NOT YOUR RUNOFTHEMILL FINANCIAL WIZARD MAKING MONEY WAS NOT THE GOAL BUT MERELY THE PRESUPPOSITION OF HIS LIFE ON HIS SECOND VISIT TO ENGLAND IN 1910 HE THREW HIMSELF INTO POLITICS A PROTEGE OF THE CONSERVATIVE MEMBER OF PARLIAMENT LATER PRIME MINISTER ANDREW BONAR LAW HE NARROWLY WON A SEAT IN ASHTONUNDERLYNE HE BECAME SIR MAX IN THE HONORS LIST OF 1911 AND ACQUIRED CHERKLEY COURT A HANDSOME ESTATE IN SURREY FOR THE NEXT 53 YEARS THE AUTHORS WRITE CHERKLEY SAW AS MUCH POLITICAL SOCIAL AND SEXUAL INTRIGUE AS ANY HOUSE IN ENGLAND IT WAS AROUND THIS TIME THAT MAX BECAME SERIOUSLY INVOLVED IN THE NEWSPAPER BUSINESS ACQUIRING A PART INTEREST IN THE DAILY EXPRESS SOON HE CONTROLLED IT AND THE EVENING STANDARD AND HAD LAUNCHED THE SUNDAY EXPRESS TOGETHER THESE PAPERS FORMED ONE OF THE MOST SUCCESSFUL PRESS EMPIRES IN HISTORY SOME SAY THAT LORD BEAVERBROOK WAS THE MODEL FOR EVELYN WAUGH'S FAMOUSLY AUTOCRATIC LORD COPPER IN SCOOP THOUGH WAUGH DENIED IT UP TO A POINT WHEN WORLD WAR I BROKE OUT MAX WAS GIVEN THE HONORARY RANK OF LIEUTENANT COLONEL AND A MINOR ADMINISTRATIVE POST BY THE END OF THE WAR HE HAD BECOME MINISTER OF INFORMATION AND A LIFELONG FRIEND AND RIVAL OF WINSTON CHURCHILL HIS INTRIGUES DID MUCH TO BRING DOWN THE FECKLESS GOVERNMENT OF HERBERT ASQUITH IN 1916 A FEAT THAT HELPED WIN THE WAR AND WAS HE THOUGHT THE BIGGEST THING HE HAD EVER DONE IN 1916 AITKEN ALSO ACQUIRED A BARONETCY DESPITE SOME GRUMBLING BY THE KING AND WROTE HIS FIRST BOOK AN ACCOUNT OF CANADA'S INVOLVEMENT IN THE SECOND BATTLE OF YPRES FROM THEN UNTIL HIS DEATH IN 1964 LORD BEAVERBROOK WAS NEVER FAR FROM THE POLITICAL LIMELIGHT OFTEN HE WAS SPECTACULARLY WRONG HE GROTESQUELY UNDERESTIMATED THE THREAT OF NAZISM AFTER THE MUNICH AGREEMENT THE FRONT PAGE OF THE DAILY EXPRESS PREDICTED THAT BRITAIN WILL NOT BE INVOLVED IN A EUROPEAN WAR THIS YEAR OR NEXT YEAR EITHER IN LATE 1938 LORD BEAVERBROOK RAGED THAT THIS MAN CHURCHILL IS A WARMONGER HE MUST BE STOPPED BUT WHEN HITLER'S WARPLANES THREATENED BRITAIN LORD BEAVERBROOK EMERGED AS ONE OF CHURCHILL'S MOST VALUABLE ADVISERS IN MAY 1940 HE BECAME MINISTER OF AIRCRAFT PRODUCTION DOUBLING PRODUCTION WITHIN A FEW MONTHS IT IS NOT TOO MUCH TO SAY THAT HIS EFFORTS WERE INSTRUMENTAL IN SAVING ENGLAND WHEN THE BLITZ BEGAN IN SEPTEMBER THIS BOOK MAKES IT ABUNDANTLY CLEAR THAT LORD BEAVERBROOK HAD HIS UNATTRACTIVE SIDES HE COULD BE PETTY OVERBEARING AND MANIPULATIVE IT WAS SAID THAT NO MAN OF ANY PARTY TRUSTS MAX BUT EVERYONE CONSULTED HIM HIS ATTITUDE TOWARD WOMEN WAS CONDESCENDING EVEN CRUEL HE WAS A TIRELESS PHILANDERER AND COUNTED AMONG HIS MANY MISTRESSES REBECCA WEST HER QUIP ABOUT THE NOVELIST MICHAEL ARLEN EVERY OTHER INCH A GENTLEMAN APPLIES TO LORD BEAVERBROOK TOO AT THE SAME TIME LORD BEAVERBROOK HAD MANY VIRTUES TIME AND AGAIN WE READ OF HIS MAKING LAVISH PRESENTS EVEN TO ENEMIES WHEN TROUBLE STRUCK HIS FIRST QUESTION WAS ALWAYS NEED ANY MONEY MS CHISHOLM AND MR DAVIE SPEAK OF LORD BEAVERBROOK'S LIFELONG DREAD OF DULLNESS IN FACT HE WAS SOMETHING OF A FAUSTIAN FIGURE UNANCHORED AND SELFABSORBED BRILLIANT ENERGETIC IMPISH LONELY WHAT THE HISTORIAN MICHAEL GILBERT SAID OF LORD BEAVERBROOK'S HISTORIES OF THE 1910S AND EARLY 1920S IS EQUALLY TRUE OF HIS LIFE ON THE ONE HAND INDISPENSABLE ON THE OTHER NEVER QUITE RIGHT 9304060085 930406 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO COST CUTTING MORE OUTLETS HELPED 1STQUARTER EARNINGS GOODYEAR TIRE & RUBBER CO CITING COST CUTTING AND MORE SALES OUTLETS SAID IT EXPECTS TO EARN 83 MILLION TO 86 MILLION IN THE FIRST QUARTER IN 1992'S FIRST QUARTER AKRON OHIOBASED GOODYEAR EARNED 663 MILLION OR 94 CENTS A SHARE SEPARATELY STANLEY C GAULT SAID HE AGREED TO STAY ON AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER FOR SEVEN MONTHS BEYOND HIS PLANNED JUNE 1994 RETIREMENT DATE MR GAULT CALLED THE CURRENT TIME FRAME TOO COMPRESSED THE EXTENSION JUST GIVES US MORE TIME TO DO THE THINGS WE WANT TO DO AND DO THEM PROPERLY HE SAID AT THE ANNUAL MEETING MR GAULT ALSO SAID HE EXPECTS SALES WILL RISE 2 EXCLUDING DIVESTED ASSETS IN THE FIRST QUARTER IN THE YEAREARLIER PERIOD GOODYEAR HAD 268 BILLION IN SALES EXCLUDING ASSETS SOLD 9304060084 930406 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/16 HIGH 2 7/8 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP310 30 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 239 DAYS 320 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 317 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 269 THREE MONTHS 282 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 320 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 306 90 DAYS 309 120 DAYS 311 150 DAYS 312 180 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 MONDAY MARCH 29 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 296 13 WEEKS 304 26 WEEKS AUCTION OF APR 5 POSTPONED FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 737 60 DAYS 747 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 736 60 DAYS 746 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 278 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304060083 930406 BUSINESS BRIEF CANADIAN PACIFIC FOREST PRODUCTS COMPANY SAYS IT WILL HALT PRODUCTION OF PULP AT MILL CANADIAN PACIFIC FOREST PRODUCTS LTD SAID IT WILL HALT PRODUCTION OF KRAFT PULP AT ONE OF ITS TWO MILLS IN THUNDER BAY ONTARIO THE MILL HAS ANNUAL CAPACITY OF ABOUT 190000 METRIC TONS THE COMPANY ATTRIBUTED THE SHUTDOWN TO WORKERS' REJECTION OF A PROPOSAL TO MAKE WORK RULES MORE FLEXIBLE ANDRE FOUCAULT A SPOKESMAN FOR THE COMMUNICATIONS ENERGY AND PAPERWORKERS UNION OF CANADA ARGUED THAT THE MILL'S PROBLEMS STEM FROM A LACK OF CAPITAL IMPROVEMENTS HE SAID ABOUT 200 WORKERS ARE EXPECTED TO BE LAID OFF THE MONTREAL FOREST PRODUCTS COMPANY SAID THE LENGTH OF THE SHUTDOWN TO BEGIN APRIL 17 WILL DEPEND ON MARKET CONDITIONS AND THE COMPANY'S ABILITY TO MAKE SIGNIFICANT COST AND PRODUCTIVITY IMPROVEMENTS 9304060082 930406 BUSINESS BRIEF PARKER HANNIFIN CORP COMPANY BUYS OPERATIONS FROM TRW'S ROSS DIVISION PARKER HANNIFIN CORP SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF THE US AND EUROPEAN OPERATIONS OF TRW INC'S ROSS HYDRAULIC MOTOR AND HYDROSTATIC STEERING CONTROLS BUSINESS TERMS WEREN'T DISCLOSED BUT THE OPERATIONS HAD SALES OF MORE THAN 37 MILLION LAST YEAR BOTH COMPANIES SAID THE OPERATIONS INCLUDE A PLANT IN GREENSVILLE TENN AND HYDRAULIC MOTOR ASSETS IN GERMANY TRW WILL RETAIN RELATED OPERATIONS IN BRAZIL WHICH WILL CONTINUE TO MAKE AND MARKET ROSS HYDRAULIC MOTORS AND HYDROSTATIC STEERING CONTROLS IN SOUTH AMERICA PARKER BASED IN CLEVELAND MAKES MOTIONCONTROL COMPONENTS AND SYSTEMS FOR INDUSTRIAL AND AEROSPACE MARKETS TRW ALSO BASED IN CLEVELAND PROVIDES ADVANCED TECHNOLOGY PRODUCTS AND SERVICES FOR THE AUTOMOTIVE SPACE AND DEFENSE AND INFORMATION MARKETS 9304060081 930406 ENTERPRISE DIVERSICORP HELPS CREDITPINCHED FIRMS FIND FINANCING COMPANY BRIDGES THE GAP BETWEEN RELUCTANT LENDERS AND SMALL BUSINESSES BY MICHAEL SELX STAFF REPORTER OF THE WALL STREET JOURNAL JIM MAYER MAKES HIS LIVING LOOSENING THE PURSE STRINGS OF BANKS AND SUPPLIERS SCARED STIFF OF FINANCING TROUBLED SMALL BUSINESSES MR MAYER IS PRESIDENT AND CHIEF EXECUTIVE OF DIVERSICORP INC AN UNUSUAL CONCERN THAT OBTAINS FINANCING FROM RELUCTANT CREDITORS BY ACTING AS THE CARETAKER OF THEIR LOANS' COLLATERAL TO ASSURE CREDITORS THAT THEY WILL GET THEIR MONEY THE DALLAS CONCERN TAKES POSSESSION OF GOODS SHIPPED TO SMALL FIRMS AND KEEPS THEM UNDER LOCK AND KEY ON THE BUYER'S PREMISES THE MERCHANDISE IS RELEASED ONLY AS IT IS PAID FOR MR MAYER HELPED LAFE MCGARY WORK OUT SUCH AN ARRANGEMENT IN 1991 MR MCGARY AND A PARTNER PURCHASED A BUILDINGMATERIALS DISTRIBUTOR IN LOUISVILLE KY OWNED BY ALUMINUM CORP OF AMERICA BUT THE COMPANY THEY FORMED TO MAKE THE DEAL TRIUMPH BUILDING PRODUCTS INC COULDN'T FIND A BANK TO FINANCE THE PURCHASE OF MORE THAN 500000 IN INVENTORY MR MCGARY SAYS NOW TRIUMPH PAYS MR MAYER TO WATCH OVER THE GOODS DIVERSICORP LEASED SECURED SPACE IN THE FIRM'S WAREHOUSE AND APPOINTED TWO TRIUMPH EMPLOYEES AS ITS INSURED AGENTS TO KEEP TRACK OF ALCOA'S GOODS AND SEND THE SUPPLIER PAYMENTS EVERY TWO MONTHS OR SO A DIVERSICORP EMPLOYEE CONDUCTS AN ONSITE EXAMINATION SOMETIMES UNANNOUNCED TO MAKE CERTAIN TRIUMPH IS COMPLYING WITH THE AGREEMENT DIVERSICORP'S FEE PAID MONTHLY EQUALS 1 TO 3 OF THE COLLATERAL'S VALUE THE DEAL GAVE US THE WHEREWITHAL TO GROW THE BUSINESS SAYS MR MCGARY TRIUMPH'S PRESIDENT ALCOA TRIUMPH'S SUPPLIER ALSO LIKES THE IDEA IT REPRESENTS A FINANCING TOOL FOR THOSE DISTRIBUTORS WHO HAVE LOST OR ARE UNABLE TO GET LINES OF CREDIT SAYS MICHAEL ISLEY CREDIT MANAGER OF ALCOA'S BUILDINGPRODUCTS DIVISION FORMED IN 1985 DIVERSICORP HAS HELPED MORE THAN 100 SMALL FIRMS WORK OUT SIMILAR AGREEMENTS MR MAYER SAYS THE FIRM HAS MANAGED 750 MILLION IN COLLATERAL BUT CREDITORS HAVE BEEN STUCK WITH ONLY 700000 IN UNPAID BILLS HE ADDS IN THE CURRENT BANKING CLIMATE FOR SMALL BUSINESS DIVERSICORP COULD THRIVE SAYS PAUL MIGNINI JR PRESIDENT OF THE NATIONAL ASSOCIATION OF CREDIT MANAGEMENT WHICH REPRESENTS 40000 CREDIT MANAGERS IT APPEARS TO BE A NEW WAY OF TRYING TO KEEP GOODS FLOWING ESPECIALLY TO SMALL BUSINESSES THAT ARE HAVING TROUBLE GETTING CREDIT MR MIGNINI SAYS MR MIGNINI SAYS HE KNOWS OF NO US FIRM THAT PROVIDES THE SAME SERVICE AS DIVERSICORP AND HE'S NOT SURPRISED IT WOULD TAKE YEARS TO BUILD ENOUGH CREDIBILITY AMONG CREDITORS THAT THEY WOULD TRUST A FIRM TO WATCH OVER THEIR GOODS HE SAYS WHILE HE EXPECTS DIVERSICORP'S REVENUE TO REACH ONLY 1 MILLION THIS YEAR MR MAYER SAYS HE PLANS TO ACCELERATE EXPANSION OF HIS 10PERSON FIRM TO GROW INTERNATIONALLY DIVERSICORP HAS REACHED A PRELIMINARY AGREEMENT TO FORM A JOINT VENTURE WITH WARRANT SA A SIMILAR FIRM BASED IN BELGIUM THE COMPANY MOREOVER IS NEGOTIATING WITH A CREDIT INSURER TO BLEND SUCH COVERAGE WITH ITS COLLATERALCONTROL SERVICE DOING SO WOULD FURTHER PROTECT LENDERS AND SUPPLIERS AGAINST LOSSES ARISING FROM CREDIT GRANTED TO SMALL FIRMS MR MAYER'S FIRM EVEN INTENDS TO BECOME A LENDER ITSELF WITH AN IDEA CALLED INVENTORY FACTORING UNDER THAT PLAN THE COMPANY WOULD BUY INVENTORY FROM SUPPLIERS AND RESELL IT ON CREDIT TO SMALLER FIRMS WE WANT TO BE A ONESTOP SHOP FOR CREDIT SAYS MR MAYER 42 YEARS OLD WE'VE BEEN A WONDERFUL LITTLE BOUTIQUE BUT ITS A BIG WORLD OUT THERE WE'VE DECIDED ITS TIME TO GROW UP DOING SO WON'T BE EASY WHILE MR MAYER HAS PROVEN HIS SUCCESS AT GETTING MONEY FOR OTHER FIRMS HIS ABILITY TO RAISE LARGE SUMS FOR DIVERSICORP IS UNTESTED AND TO FINANCE HIS EXPANSION PLAN HE SAYS THE COMPANY NEEDS INITIALLY NEARLY 13 MILLION THEY'LL NEED TO BE A BIT BIGGER TO IMPLEMENT SOME OF THE NOVEL THINGS THEY'RE TRYING TO DO SAYS MURAT KOPRULU PRESIDENT OF MULTILATERAL FUNDING INTERNATIONAL INC A NEW YORK TRADEFINANCING ADVISER THAT HAS CONSULTED DIVERSICORP ABOUT ITS INTERNATIONAL PLANS DIVERSICORP STARTED OUT SEVEN YEARS AGO OPERATING MAINLY AS A TURNAROUNDMANAGEMENT CONSULTING FIRM BUT BY 1988 MR MAYER AND DIVERSICORP'S THREE OTHER OWNERS HAD DECIDED TO CHANGE THE FIS EMPHASIS THE CONSULTING FIELD WAS GETTING TOO CROWDED MR MAYER SAYS MEANWHILE AS THE BANKING CRISIS WORSENED AND THE NATION HEADED INTO A RECESSION MORE AND MORE CREDITORS WANTED TO KNOW WHERE THEIR COLLATERAL WAS AT NIGHT SUCH CONCERNS CREATE REAL PROBLEMS FOR BUSINESSES LIKE BUILDERS CONCRETE PRODUCTS MANUFACTURING INC WHICH WENT LOOKING FOR CREDIT IN 1989 THAT YEAR THE DALLAS COMPANY FILED FOR BANKRUPTCYCOURT PROTECTION FROM ITS CREDITORS AS THE RECESSION DRIED UP PRODUCT DEMAND SAYS LEE SMITH PRESIDENT THE TEXAS CONSTRUCTION INDUSTRY WAS ON BANKERS' BLACK LIST AT THE TIME AND NOBODY WOULD TOUCH US THAT CHANGED WHEN BUILDERS CONCRETE AGREED TO USE DIVERSICORP'S COLLATERALMANAGEMENT SERVICE A LOCAL BANK AGREED TO GRANT THE COMPANY A 375000 CREDIT LINE AS LONG AS MR MEYER'S FIRM MONITORED THE BUILDING SUPPLIES THAT SECURED THE DEBT MR SMITH USED THE LOAN TO FUND INVENTORY AND RECEIVABLES AND IN 1991 THE COMPANY EMERGED FROM BANKRUPTCYCOURT PROTECTION MR SMITH SAYS HE EXPECTS BUILDER CONCRETE'S ANNUAL SALES THIS YEAR TO RISE TO MORE THAN 4 MILLION FROM 31 MILLION A YEAR AGO AS ESSENTIAL AS DIVERSICORP WAS TO TURNING AROUND HIS TROUBLED CONCERN MR SMITH CONCEDES THAT THERE ARE STILL TRADEOFFS TO USING THE FIRM'S SERVICES IN ADDITION TO MR MAYER'S MONTHLY FEE THE ARRANGEMENT COSTS BUILDERS CONCRETE THE 15 HOURS A WEEK THAT AN EMPLOYEE DEVOTES TO SERVING AS DIVERSICORP'S AGENT THE COMPANY ALSO LOSES CONTROL OF THE MONEY IT COLLECTS FROM CUSTOMERS NORMALLY MR SMITH COULD USE SUCH PROCEEDS FOR WHATEVER PURPOSE HE LIKED UNDER THE DIVERSICORP AGREEMENT COLLECTIONS ARE HANDED IMMEDIATELY TO HIS CREDITOR BUSINESS OWNERS WHO DEAL WITH FIRMS SUCH AS DIVERSICORP HAVE TO BE WILLING TO LIVE WITH THAT RIGIDITY SAYS JAMES REED DIRECTOR OF THE DALLASFORT WORTH DISTRICT OFFICE OF THE SMALL BUSINESS ADMINISTRATION SOMETIMES THEY'RE JUST NOT PREPARED TO DO THAT 9304060080 930406 BUSINESS BRIEF ABRAXAS PETROLEUM CORP COMPANY BUYS PROPERTIES FROM SUBSIDIARY OF MOBIL ABRAXAS PETROLEUM CORP MORE THAN DOUBLING ITS PRODUCTION SAID IT COMPLETED AN ACQUISITION OF TEXAS OIL AND GAS PROPERTIES FROM A UNIT OF MOBIL CORP FOR 41 MILLION THE DEAL INCLUDES THE PORTILLA AND STEDMAN ISLAND FIELDS ALONG THE CENTRAL TEXAS GULF COAST THE PURCHASE OF THE WHITE POINT EAST FIELD ALSO INCLUDED IN THE TRANSACTION WILL BE COMPLETED ON OR BEFORE MAY 3 ABRAXAS BASED IN SAN ANTONIO TEXAS PAID FOR THE ACQUISITION WITH 165 MILLION FROM NEW CREDIT FACILITY 21 MILLION OF A 50 INTEREST IN A PENSION TRUST FUND THAT RECEIVES REVENUES FROM THE PROPERTIES AND CORPORATE CASH THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY ESTIMATES THAT PRODUCTION FROM ITS ACQUIRED INTERESTS IN THE PROPERTIES WAS ABOUT 700 BARRELS A DAY OF OIL AND 34 MILLION CUBIC FEET OF GAS IN 1992 THIS COMPARES WITH ABRAXAS' ACTUAL PRODUCTION OF ABOUT 520 BARRELS OF OIL AND 14 MILLION CUBIC FEET OF GAS A DAY AT YEAREND 1992 9304060079 930406 BOYCOTT OF GE CALLED OFF AS AEROSPACE UNIT IS SOLD BOSTON AN ACTIVIST GROUP CALLED OFF ITS SEVENYEAR BOYCOTT OF GENERAL ELECTRIC CO AFTER THE COMPANY CLOSED THE SALE OF ITS AEROSPACE DIVISION TO MARTIN MARIETTA CORP INFACT BASED IN BOSTON DOESN'T PLAN TO BOYCOTT THE MUCH SMALLER MARTIN MARIETTA A SPOKESWOMAN SAID CALLING THE NUCLEARWEAPONS INDUSTRY MUCH WEAKER WITHOUT GE INFACT WAS EXECUTIVE PRODUCER FOR THE DOCUMENTARY DEADLY DECEPTION GENERAL ELECTRIC NUCLEAR WEAPONS AND OUR ENVIRONMENT WHICH WON AN ACADEMY AWARD LAST YEAR AND TOOK CREDIT FOR CREATING A PUBLIC RELATIONS NIGHTMARE FOR GE BUT JACK BATTY A GE SPOKESMAN SAID THE CAMPAIGN HAD NO SIGNIFICANT EFFECT ON GE'S BUSINESS GROWTH NOTING THAT PROFIT AND REVENUE ROSE DURING THE BOYCOTT GE DECIDED LAST YEAR TO SELL THE DIVISION BECAUSE OF THE SHRINKING AEROSPACE AND DEFENSE INDUSTRY 9304060078 930406 WHITE HOUSE BEATS A RETREAT ON STIMULUS BILL ADMINISTRATION WILL OFFER A SCALEDBACK VERSION AFTER CONGRESS'S RECESS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE STYMIED BY A REPUBLICAN FILIBUSTER IN THE SENATE BEGAN A CALCULATED RETREAT TO BUY TIME AND TRY TO WIN OVER VOTES FOR A PAREDBACK VERSION OF ITS 16 BILLIONPLUS STIMULUS BILL AFTER LOSING FOR A THIRD TIME YESTERDAY ON A MOTION TO LIMIT DEBATE THE CLINTON ADMINISTRATION SAID LAST NIGHT THAT IT WOULD WAIT UNTIL CONGRESS RETURNS FROM THE SPRING RECESS LATER THIS MONTH TO PRESS THE ISSUE FURTHER NO FINAL DECISIONS HAVE YET BEEN MADE ON THE SHAPE OF THE MODIFIED PACKAGE BUT THE WHITE HOUSE IS UNDER PRESSURE TO SCUTTLE MAJOR PORTIONS OF THE COMMUNITY DEVELOPMENT AND STUDENTAID FUNDS IN THE CURRENT BILL THE ACTION WAS FOLLOWED BY THE APPROVAL OF SEPARATE LEGISLATION TO RAISE THE GOVERNMENT'S BORROWING AUTHORITY TO 437 TRILLION TO FINANCE THE FEDERAL DEBT THROUGH THE FISCAL YEAR ENDING SEPT 30 THEY MAY HIT US A LITTLE ON THIS PRESIDENT CLINTON SAID YESTERDAY AFTERNOON HINTING THAT CONCESSIONS WILL HAVE TO BE MADE ON THE STIMULUS BILL AND TEXAS BILLIONAIRE ROSS PEROT DESCRIBING THE BILL AS COSTLY AND OF LITTLE OR NO INTEREST TO AMERICANS GAVE HIS IMPLICIT BLESSING TO THE GOP RESISTANCE DO THE REPUBLICANS HAVE ANY OTHER OPTION MR PEROT SAID IN A TELEPHONE INTERVIEW I GUESS THEY ARE DOING IT BECAUSE IT'S THE ONLY WAY TO PREVENT MONEY FROM BEING SPENT THAT THE AMERICAN PEOPLE DON'T WANT SPENT FOLLOWING YESTERDAY'S VOTE TREASURY SECRETARY LLOYD BENTSEN AND WHITE HOUSE BUDGET DIRECTOR LEON PANETTA CAME TO THE CAPITOL TO CONSULT WITH THE LEADERSHIP BUT REPUBLICANS GAVE LITTLE GROUND WITH MINORITY LEADER ROBERT DOLE CASTING DOUBT ON THE WHITE HOUSE'S CHANCES EVEN AFTER THE RECESS IT GIVES THEM 10 DAYS TO LOBBY THEIR PEOPLE I THINK IT'S A LITTLE LATE SAID MR DOLE WHO TOOK CARE NONETHELESS TO APPEAR MODEST IN HIS TRIUMPH VICTORIES ARE SHORTLIVED AROUND HERE SAID THE KANSAS REPUBLICAN I DON'T THINK I'LL GO UP ON THE TOP OF THE CAPITOL AND WAVE THE FLAG THOUGH NEVER REVEALING HIS FULL ALTERNATIVE PLAN MR DOLE HAS CONTINUED TO DEMAND THAT ANY NEW SPENDING BEYOND THE 4 BILLION IN THE BILL FOR UNEMPLOYMENT BENEFITS BE MATCHED BY OFFSETTING CUTS THIS HARDLINE POSITION IS WELLTAILORED FOR THE MAJORITY OF THE REPUBLICAN CAUCUS BUT THE ADMINISTRATION HOPES IT CAN YET PEEL OFF FOUR TO FIVE GOP MODERATES BY PARING BACK THE HIGHPROFILE PROGRAMS THAT HAVE RECEIVED THE MOST CRITICISM IN THE DEBATE AMONG THESE IS 256 BILLION IN COMMUNITYDEVELOPMENT FUNDS WHICH HAVE BEEN THE SUBJECT OF REPEATED CONSERVATIVE ATTACKS AND THOUGH THERE IS BROAD SUPPORT FOR THE UNDERLYING STUDENTAID PROGRAM SENATORS QUESTION THE RELEVANCE OF INCLUDING AN ADDITIONAL 186 BILLION TO MAKE UP A SHORTFALL BUILT UP OVER RECENT YEARS A THIRD TARGET FOR POSSIBLE CUTS IS THE SUMMER JOBS PROGRAM WHERE THE PRESIDENT HAS ASKED FOR 1 BILLION IN NEW MONEY DESPITE A BACKLOG OF HUNDREDS OF THOUSANDS OF DOLLARS FROM PREVIOUS APPROPRIATIONS THE PRESIDENT SPOKE BY TELEPHONE YESTERDAY WITH MAJORITY LEADER GEORGE MITCHELL D MAINE AND SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD D WVA WHO HAS BORNE THE BRUNT OF THE OFTEN BITTER DEBATE ANY CONCESSION NOW WILL HAVE TO BE DISCUSSED WITH THE HOUSE AND THERE IS SENSITIVITY TO PRESERVING THE WORKING RELATIONSHIP WITH MR BYRD WHO WILL BE A NEEDED ALLY FOR THE MONTHS AHEAD EVEN AS THEY ARGUE AGAINST THE NEW SPENDING REPUBLICANS HAVE MORE THAN A PASSING SELFINTEREST IN THE OUTCOME FOR THEIR HOME STATES WHILE PUBLICLY CRITICIZING THE COMMUNITYDEVELOPMENT FUNDS IN THE BILL TEXAS SEN PHIL GRAMM HAS LOBBIED THE ADMINISTRATION TO ADOPT A DISTRIBUTION FORMULA MORE BENEFICIAL TO THE WEST AND SOUTH IN THE SAME FASHION MR DOLE HAS STUCK TO HIS POSITION THAT OFFSETTING CUTS BE FOUND BUT HAS ALSO PUT IN A WORD WITH THE SENATE APPROPRIATIONS COMMITTEE FOR TWO TRANSPORTATION PROJECTS IN KANSAS NO FAMILY MAY FEEL THE CHOICES MORE THAN THAT OF REPUBLICAN SEN JOHN CHAFEE WHO HAS CONDEMNED THE TRASH IN THE BILL EVEN THOUGH THE ADDED APPROPRIATIONS COULD MEAN AN ADDITIONAL 450000 IN COMMUNITYDEVELOPMENT FUNDS FOR WARWICK RI WHERE HIS SON LINCOLN IS MAYOR THE YOUNGER CHAFEE DEFENDED HIS FATHER'S STANCE YESTERDAY I THINK BETTER MANAGEMENT IS REALLY THE ANSWER BUT WARWICK ISN'T SHY ABOUT PURSUING EXISTING FEDERAL FUNDS FOR THE VERY BICYCLE PATH PROJECTS SO RIDICULED BY THE GOP IN THE DEBATE WE SUBMITTED 13 APPLICATIONS SAID JOHN STEVENS DIRECTOR OF CITY PLANNING IN THE INTERVIEW MR PEROT WAS HESITANT TO TAKE SIDES OUTRIGHT IN THE SENATE DEBATE BUT MUCH OF THE FIGHT CAN BE SEEN AS A STRUGGLE OVER HIS SUPPORTERS FROM NOVEMBER'S ELECTION MR DOLE'S EMPHASIS ON COSTCUTTING FITS THIS STRATEGY AND BY THE SAME TOKEN THE WHITE HOUSE HAS PAINTED THE FILIBUSTER AS A RETURN TO THE GRIDLOCK DETESTED BY MANY PEROT BACKERS IF THE ADMINISTRATION CAN PARE ITS PACKAGE ENOUGH TO BE CREDIBLE TO MODERATES THE GOP COULD RISK LONGTERM DAMAGE TO ITSELF IF IT CONTINUES TO OBSTRUCT THE BILL WE MAY WIN THE BATTLE BUT LOSE THE WAR SAID FRANK LUNTZ A REPUBLICAN CONSULTANT AND FORMER POLLSTER FOR MR PEROT WE USED THE L' WORD LIBERAL AGAINST THE DEMOCRATS NOW THEY USE THE GRIDLOCK WORD AGAINST US THE G' WORD 9304060077 930406 TECHNOLOGY BRIEF IMMUNOGEN INC FINAL ROUND OF TESTS BEGUN ON FIRM'S LYMPHOMA DRUG IMMUNOGEN INC ENTERING A FINAL ROUND OF TESTS IN ITS FIRST MAJOR PRODUCTDEVELOPMENT EFFORT SAID IT BEGAN A PHASE THREE CLINICAL TRIAL OF THE DRUG ONCOLYSIN B IN PATIENTS WITH NONHODGKIN'S BCELL LYMPHOMA THE TRIAL IS DESIGNED TO DEMONSTRATE EFFECTIVENESS OF THE DRUG IN EXTENDING DISEASEFREE SURVIVAL OF PATIENTS WHO ARE IN REMISSION AFTER AUTOLOGOUS BONE MARROW TRANSPLANTATION IN ADDITION TO NONHODGKIN'S LYMPHOMA THE DRUG HAS POTENTIAL APPLICATIONS IN THE TREATMENT OF LYMPHOCYTIC LEUKEMIAS MULTIPLE MYELOMA AND AIDSRELATED LYMPHOMA THE CAMBRIDGE MASS COMPANY SAID IN THIS TRIAL ONCOLYSIN B IS BEING GIVEN AS OUTPATIENT THERAPY IN A RANDOMIZED AND CONTROLLED TRIAL INCLUDING OVER 200 PATIENTS A COOPERATIVE ONCOLOGY GROUP RECOGNIZED BY THE NATIONAL CANCER INSTITUTE IS ADMINISTERING THE DRUG TO PATIENTS AT 20 TO 25 CENTERS IN THE US AND CANADA IMMUNOGEN SAID IT EXPECTS ENROLLMENT TO BE COMPLETED IN ONE YEAR THE COMPANY ALSO SAID IT EXPECTS TO BE IN POSITION TO PREPARE A PRODUCT LICENSE APPLICATION SIX TO 18 MONTHS AFTER THAT IN 1995 9304060076 930406 INTERNATIONAL BRIEF FOSTER'S BREWING GROUP LTD SALE OF 10 STAKE IN MOLSON BRINGS PROFIT OF 348 MILLION FOSTER'S BREWING GROUP LTD OF AUSTRALIA SAID IT MADE A PRETAX PROFIT OF ABOUT 50 MILLION AUSTRALIAN DOLLARS US348 MILLION FROM THE SALE OF PART OF ITS STAKE IN THE MOLSON BREWERIES JOINT VENTURE IN CANADA FOSTER'S SAID ITS SALE OF A 10 STAKE IN THE CANADIAN JOINT VENTURE TO PHILIP MORRIS CO'S MILLER BREWING CO OF THE US FOR A192 MILLION HAS BEEN COMPLETED THE COMPANIES ANNOUNCED PLANS FOR AN ALLIANCE IN JANUARY UNDER THE AGREEMENT BETWEEN FOSTER'S AND MILLER THE US COMPANY WILL BUY 20 OF MOLSON BREWERIES OF CANADA WHICH WAS FORMERLY EQUALLY OWNED BY FOSTER'S AND MOLSON COS MILLER ALSO AGREED TO BUY THE US IMPORT OPERATIONS OF MOLSON BREWERIES AND THE US MARKETING AND DISTRIBUTION RIGHTS FOR MOLSON AND FOSTER'S BRANDS TED KUNKEL FOSTER'S CHIEF EXECUTIVE OFFICER SAID MILLER HAS AGREED TO PROVIDE ADDITIONAL MARKETING SUPPORT FOR FOSTER'S AND MOLSON BRANDS TO BOOST THEIR PENETRATION OF THE US BEER MARKET 9304060075 930406 CHICAGO BULLS STAR JORDAN TO START OWN RESTAURANT CHICAGO CHICAGO BULLS STAR MICHAEL JORDAN ONE OF MCDONALD'S CORP'S BIGGEST PROMOTERS WHO EVEN HAS A SANDWICH NAMED FOR HIM IS DISHING UP A NEW OFFERING HIS OWN RESTAURANT AND IT ISN'T A MCDONALD'S FRANCHISE THE BASKETBALL STAR'S VENTURE MICHAEL JORDAN'S RESTAURANT WILL BE MANAGED BY AN AFFILIATE OF HYATT HOTELS CORP THE DOWNTOWN CHICAGO RESTAURANT AMONG OTHER THINGS WILL FEATURE A FIRST FLOOR SPORTS BAR A 200SEAT SECONDFLOOR DINING ROOM AND SPORTS MEMORABILIA OF MR JORDAN'S THE AMERICANSTYLE MENU HOWEVER WON'T INCLUDE THE MCJORDAN SANDWICH WHICH MCDONALD'S HAS OFFERED FREQUENTLY IN THE CHICAGO AREA HOWEVER A SPOKESWOMAN FOR MR JORDAN SAID THAT GATORADE A QUAKER OATS CO PRODUCT THAT THE ATHLETE ALSO ENDORSES WILL BE SERVED MCDONALD'S A SPOKESMAN SAID HAS BEEN FULLY AWARE OF THE PROJECT AND HAS NO PROBLEM WITH IT 9304060074 930406 BUSINESS BRIEF MEI DIVERSIFIED INC SHAREHOLDER FILES LAWSUIT AGAINST CERTAIN OFFICERS MEI DIVERSIFIED INC SAID A SHAREHOLDER FILED SUIT AGAINST CERTAIN OF ITS OFFICERS AND DIRECTORS ALLEGING THAT PUBLIC STATEMENTS HAD MISREPRESENTED THE MINNEAPOLIS COMPANY'S FINANCIAL CONDITIONS AND VIOLATED FEDERAL SECURITIES LAWS THE SUIT FILED IN FEDERAL COURT IN WILMINGTON DEL SEEKS CLASS ACTION STATUS MEI SAID THE DEFENDANTS BELIEVE THE CLAIMS ARE WITHOUT MERIT AFTER AN EXPECTED CASH INFUSION FELL THROUGH EARLIER THIS YEAR MEI AND ITS PRINCIPAL US BEAUTYSALON SUBSIDIARIES FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN FEBRUARY THE COMPANY BLAMED UNPROFITABLE OPERATING RESULTS FROM BEAUTY SALONS IT PURCHASED IN 1990 IT IS PURSUING LITIGATION AIMED AT RECOVERING ALLEGED DAMAGES FROM THE SELLERS MEI SAID IT WASN'T NAMED A DEFENDANT IN THE SHAREHOLDER SUIT BECAUSE OF ITS CHAPTER 11 STATUS 9304060073 930406 BUSINESS BRIEF PLATINUM SOFTWARE CORP FIRM BACKS PROFIT ESTIMATES FOR ITS THIRD FOURTH PERIODS PLATINUM SOFTWARE CORP IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT IT WILL REPORT NET INCOME OF ABOUT 10 CENTS A SHARE FOR THE MARCH 31 FISCAL THIRD QUARTER AND BETWEEN 15 CENTS AND 17 CENTS FOR THE JUNE 30 FISCAL FOURTH QUARTER GERALD R BLACKIE PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THE MAKER OF FINANCIAL AND ACCOUNTING SOFTWARE IN IRVINE CALIF ALSO HAS NO QUARREL WITH ANALYSTS' PROJECTIONS THAT PLATINUM SOFTWARE WILL REPORT NET INCOME BETWEEN 41 CENTS AND 43 CENTS A SHARE FOR THE JUNE 30 FISCAL YEAR SAID MR BLACKIE WHO WAS INTERVIEWED WITH JON R ERICKSON THE COMPANY'S CHIEF FINANCIAL OFFICER ANALYSTS ESTIMATE FISCAL 1993 REVENUE AT BETWEEN 34 MILLION AND 365 MILLION NET INCOME IN THE MARCH 31 1992 FISCAL THIRD QUARTER TOTALED 170000 OR THREE CENTS A SHARE ON REVENUE OF 47 MILLION NET INCOME IN THE JUNE 30 1992 FISCAL FOURTH QUARTER TOTALED 93000 OR TWO CENTS A SHARE ON REVENUE OF 5 MILLION 9304060072 930406 BUSINESS BRIEF ADVANCED MICRO DEVICES INC COMPANY BROOKTREE CORP SETTLE PENDING LITIGATION ADVANCED MICRO DEVICES INC AND BROOKTREE CORP SAID THEY SETTLED ALL PENDING LITIGATION BETWEEN THE TWO INTEGRATED CIRCUIT COMPANIES OVER SPECIAL GRAPHICS CHIPS KNOWN AS COLOR PALETTES THE SETTLEMENT INVOLVES PAYMENT TO BROOKTREE OF 268 MILLION FROM A PREVIOUS AWARD OF CASH DAMAGES FOR PATENT AND MASKWORK INFRINGEMENT BROOKTREE SAID THE PACT ALSO BARS THE TWO FROM ATTACKING EACH OTHER'S PATENTS AND PROVIDES THAT AMD WILL TRANSFER CERTAIN TECHNOLOGY RIGHTS AND SUPPLY COLOR PALETTE DEVICES FOR A PERIOD OF TIME TO BROOKTREE AMD SUNNYVALE CALIF SAID THE AGREEMENT WON'T HAVE ANY MATERIAL IMPACT ON THE COMPANY BECAUSE IT RECORDED A CHARGE OF 274 MILLION IN THE FOURTH QUARTER OF 1990 BROOKTREE BASED IN SAN DIEGO SAID IT WILL RECORD THE SETTLEMENT IN ITS FISCAL THIRD QUARTER ENDING JUNE 26 9304060070 930406 INTERNATIONAL BRIEF DAIMLERBENZ AG MERCEDES RUSSIAN COMPANY REACH PACT ON BUS VENTURE MERCEDESBENZ AG REACHED A BREAKTHROUGH WITH A RUSSIAN BUS MANUFACTURER THAT WILL ALLOW MERCEDES TO PRODUCE BUSES IN A FACTORY NEAR MOSCOW THE DEAL RANKS AS ONE OF THE BIGGEST GERMANRUSSIAN BUSINESS VENTURES INDUSTRY SOURCES SAID THE BREAKTHROUGH INVOLVING FINANCING THE VENTURE WAS REACHED AFTER YEARS OF TALKS THE BUS VENTURE WILL BE CONDUCTED WITH THE RUSSIAN COMPANY AUTROKON THE LUXURY CAR MAKER A UNIT OF DAIMLERBENZ AG WILL RELEASE DETAILS ABOUT THE PROJECT TOMORROW THE SOURCES SAID THE SIZE OF THE RUSSIAN INVESTMENT COULD HAVE A SYMBOLIC EFFECT AND ENCOURAGE OTHER GERMAN INDUSTRIES TO INVEST IN THE FORMER SOVIET UNION ACCORDING TO GERMAN INDUSTRY SOURCES 9304060069 930406 RJR STOCK SALE MAY BE CHANGED OR POSTPONED RIVAL'S CIGARETTEPRICE CUT CLOUDS OUTLOOK OF OFFER TIED TO FOOD BUSINESS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE WAKE OF THE CIGARETTEPRICE CUTS ANNOUNCED BY PHILIP MORRIS COS RJR NABISCO HOLDINGS INC IS CONSIDERING CHANGING OR POSTPONING ITS PLANNED 15 BILLION OFFERING OF STOCK TIED TO ITS FOOD BUSINESS ACCORDING TO PEOPLE ON WALL STREET THE TOBACCO AND FOOD COMPANY'S STOCK CONTINUED TO BE ROCKED YESTERDAY BY AFTERSHOCKS FROM FRIDAY'S ANNOUNCEMENT OF MARLBORO PRICE CUTS INTENSIFYING SPECULATION ABOUT A CHANGE IN THE STOCK OFFERING WHICH IS AIMED AT BOLSTERING RJR'S MARKET VALUE RJR SHARES FELL 375 CENTS TO 6375 APIECE ON VOLUME OF 139 MILLION SHARES IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ON TOP OF A 125 FALL FRIDAY BY CONTRAST PHILIP MORRIS INCHED BACK UP 50 CENTS TO 49875 A SHARE ON VOLUME OF 163 MILLION SHARES FOLLOWING A 1475ASHARE FREEFALL FRIDAY SOME ANALYSTS SAID RJR'S SHARES WERE HURT BY THE UNCERTAINTY SURROUNDING THE STOCK OFFERING ANNOUNCED MARCH 2 WHICH HAS YET TO BE CLEARED BY THE SECURITIES AND EXCHANGE COMMISSION SALES PRESENTATIONS TO INVESTORS FOR THE NEW STOCK ARE SET TO BEGIN IN LATE APRIL WITH THE OFFERING TO BE PRICED IN MIDMAY HOWEVER SINCE THE STOCK PLAN WAS UNVEILED RJR'S CHAIRMAN AND CHIEF EXECUTIVE LOUIS GERSTNER JR HAS AGREED TO BECOME THE CHIEF EXECUTIVE OF INTERNATIONAL BUSINESS MACHINES CORP AND PHILIP MORRIS HAS CAST A PALL OF UNCERTAINTY OVER THE ECONOMICS OF THE TOBACCO BUSINESS THE RJR STOCK PLAN ORIGINALLY WAS AIMED AT SPOTLIGHTING THE VALUE OF THE COMPANY'S NABISCO FOOD BUSINESS BY SELLING A SEPARATE CLASS OF SHARES REPRESENTING A 25 STAKE IN NABISCO TO THE PUBLIC FOR ROUGHLY 15 BILLION THE COMPANY ALSO PLANS TO BEGIN PAYING DIVIDENDS ON BOTH CLASSES OF STOCK AND TO DISTRIBUTE ANOTHER 23 OF THE FOOD SHARES TO RJR SHAREHOLDERS LATER THIS YEAR BUT AT LEAST ONE CREDIT RATING AGENCY DUFF & PHELPS CREDIT RATING CO HAS PLACED RJR'S DEBT ON ITS WATCH LIST FOR A POSSIBLE DOWNGRADE CITING THE ADVERSE IMPACT OF THE MARLBORO PRICE CUT THE AGENCY SAID THE MARLBORO ACTION IS LIKELY TO FORCE CUTS IN CIGARETTE PRICES BY RJR IMPERILING THE COMPANY'S CASH FLOW AMONG THE OPTIONS FOR CHANGING OR RESTRUCTURING THE PLAN ANALYSTS SAID ARE A CUTBACK IN THE PLANNED DIVIDENDS TO CONSERVE CASH OR POSTPONING THE DISTRIBUTION OF THE EXTRA SHARES FOLLOWING THE INITIAL OFFERING ALSO POSSIBLE ARE A CHANGE IN THE SIZE OF THE OFFERING OR A REDUCTION IN THE PROPOSED OFFERING PRICE THE COMPANY MAY POSTPONE THE OFFERING UNTIL THE MARKET DIGESTS THE MARLBORO NEWS PEOPLE CLOSE TO THE OFFERING YESTERDAY SAID THEY STILL INTEND TO PROCEED WITH IT AS PLANNED ONCE IT CLEARS THE SEC STAFF REVIEW A SPOKESMAN FOR RJR DECLINED TO COMMENT CITING SEC RULES AGAINST COMMENTS WHILE AN OFFERING IS PENDING RJR MAY WAIT TO ANNOUNCE ANY CHANGES IN THE PLAN UNTIL AFTER THE SEC REVIEW HAS BEEN COMPLETED ACCORDING TO THE SAME PEOPLE ON WALL STREET SO THAT ANY CHANGES DEMANDED BY THE AGENCY CAN BE INCORPORATED INTO THE RESTRUCTURED PLAN 9304060068 930406 BUSINESS BRIEF CULBRO CORP CONCERN REPORTS WIDER LOSS FROM TOBACCO DISTRIBUTION CULBRO CORP REPORTED ITS NET LOSS WIDENED IN THE FISCAL FIRST QUARTER BECAUSE OF HIGHER INTEREST COSTS FOR A PLANNED BUILDUP OF CIGARETTE INVENTORIES IN ITS TOBACCO DISTRIBUTION BUSINESS THE LOSS FOR THE QUARTER ENDED FEB 27 WIDENED TO 17 MILLION OR 38 CENTS A SHARE FROM 846000 OR 20 CENTS A SHARE A YEAR EARLIER THE NEW YORKBASED COMPANY SAID THE RESULTS REFLECT HIGHER INTEREST EXPENSE FROM A PLANNED INCREASE IN CIGARETTE INVENTORIES IN ITS WHOLESALE DISTRIBUTION BUSINESS CULBRO SAID IT WAS INCREASING INVENTORIES IN RESPONSE TO MANUFACTURER INCENTIVE PROGRAMS JAY GREEN CULBRO CHIEF FINANCIAL OFFICER SAID PLANS BY PHILIP MORRIS COS TO CUT CIGARETTE PRICES ARE UNLIKELY TO HAVE ANY IMMEDIATE EFFECT ON ITS INVENTORYBUILDING EFFORT THOUGH THE PRICE CUTTING COULD AFFECT WHOLESALE PRICES AT A LATER POINT LATER BEING MAY JUNE JULY OR BEYOND SALES FOR THE QUARTER ROSE TO 2867 MILLION FROM 2621 MILLION A YEAR EARLIER CULBRO IS A DIVERSIFIED CONCERN WITH INTERESTS IN TOBACCO GROCERIES AND CONSUMER PRODUCTS INDUSTRIAL PRODUCTS REAL ESTATE AND LANDSCAPING 9304060067 930406 BUSINESS BRIEF ALLIED CAPITAL CORP VENTURE CAPITAL FIRM TO POST LOWER FIRSTQUARTER PROFIT ALLIED CAPITAL CORP SAID IT EXPECTS TO POST LOWER FIRSTQUARTER NET INCOME THAN A YEAR EARLIER BECAUSE OF ITS DECISION TO HOLD ITS GOVERNMENTGUARANTEED LOANS FOR AT LEAST THREE MONTHS BEFORE SELLING THEM IN THE SECONDARY MARKET ALLIED A WASHINGTON VENTURE CAPITAL COMPANY THAT INVESTS IN LOANS TO SMALL BUSINESSES SAID HOWEVER THAT THE LOWER FIRSTQUARTER EARNINGS SHOULDN'T AFFECT ITS FULLYEAR RESULTS IN THE FIRST QUARTER A YEAR EARLIER ALLIED REPORTED NET OF 11 MILLION OR 18 CENTS A SHARE THE COMPANY SAID LOANS ORIGINATED DURING THE FIRST QUARTER OF 1993 NOW WILL BE SOLD IN THE SECOND QUARTER OF THE YEAR REFLECTING THE COMPANY'S DECISION TO COMPLY WITH CERTAIN INTERNAL REVENUE SERVICE REQUIREMENTS GOVERNING SHORTTERM GAINS ALLIED CAPITAL ALSO SAID IT WILL CONTINUE TO EXPERIENCE LOWER EARNINGS UNTIL SIGNIFICANT SURPLUS CASH ON ITS BOOKS IS INVESTED IN SMALL BUSINESS LOANS WHICH CARRY INTEREST RATES OF 9 TO 15 9304060066 930406 BUSINESS BRIEF TEREX CORP DIRECTOR MAY RESIGN CITES CONCERNS' OVER MANAGERS AIRLIE GROUP LIMITED PARTNERSHIP'S REPRESENTATIVE ON THE BOARD OF TEREX CORP MAY RESIGN FROM THE COMPANY'S BOARD DUE TO CONCERNS ABOUT MANAGEMENT ACCORDING TO AN AIRLIE FILING WITH THE SECURITIES AND EXCHANGE COMMISSION IN THE FILING DAVID A SACHS A REPRESENTATIVE OF AIRLIE WHICH IS A BASS FAMILY AFFILIATED PARTNERSHIP SAID HE HAS ALREADY RESIGNED FROM THE BOARD OF FRUEHAUF TRAILER CORP TEREX BASED IN GREEN BAY WIS HOLDS A 42 STAKE IN FRUEHAUF AND RETAINS MAJORITY VOTING CONTROL OF THE TRUCKTRAILER MAKER AIRLIE DIDN'T INCLUDE ITS CURRENT STAKE IN TEREX IN THE FILING HOWEVER THE GROUP SAID IN OCTOBER 1992 THAT IT HOLDS 1255000 COMMON SHARES OR A 126 STAKE IN THE COMPANY TEREX OFFICIALS DIDN'T RESPOND TO CALLS SEEKING COMMENT FOR THE FIRST NINE MONTHS OF 1992 TEREX POSTED A NET LOSS OF 366 MILLION INCLUDING A 155 MILLION RESTRUCTURING CHARGE 9304060065 930406 BUSINESS BRIEF CURRAGH INC PROTECTION FROM CREDITORS GRANTED BY ONTARIO COURT CURRAGH INC TORONTO HURT BY POOR MARKETS AND THE EFFECT OF A 1992 MINE DISASTER SAID IT ASKED FOR AND RECEIVED PROTECTION FROM ITS CREDITORS FROM AN ONTARIO COURT CURRAGH TOOK A PRETAX CHARGE OF 221 MILLION CANADIAN DOLLARS US175 MILLION IN 1992 FOR COSTS RELATED TO AN EXPLOSION THAT KILLED 26 MINERS AND CLOSED THE COMPANY'S WESTRAY COAL MINE IN NOVA SCOTIA CURRAGH HAD A LOSS OF C543 MILLION IN 1992 AND HAD LIABILITIES OF C3620 MILLION AS OF DEC 31 1992 LAST WEEK CURRAGH SAID LOW PRICES AND HIGH WORLD INVENTORIES CAUSED IT TO BEGIN A TWOMONTH SUSPENSION OF PRODUCTION AT ITS LEAD AND ZINC MINE AT FARO YUKON AND A THREEMONTH SHUTDOWN AT ITS SA DENA HES LEAD AND ZINC MINE IN YUKON CURRAGH SAID IT WILL SEEK ADDITIONAL CAPITAL WHILE UNDER PROTECTION OF THE COMPANIES' CREDITORS ARRANGEMENT ACT WHICH IS SIMILAR TO CHAPTER 11 OF THE US BANKRUPTCY CODE CURRAGH DIDN'T ELABORATE 9304060064 930406 TECHNOLOGY BRIEF AST RESEARCH INC FIRM LAUNCHES SHIPMENTS OF PEN NOTEBOOK COMPUTER AST RESEARCH INC JUMPED INTO THE PEN COMPUTING MARKET YESTERDAY BY LAUNCHING SHIPMENTS OF ITS NEW PENEXEC PENTOP PEN NOTEBOOK COMPUTER USING A CORDLESS STYLUS FOR HANDWRITTEN DATA ENTRY AST IN IRVINE CALIF WITH THE THIRDLARGEST MARKET SHARE OF PERSONAL COMPUTERS BASED ON INTEL CORP MICROPROCESSORS THUS JOINS THE RANKS OF COMPANIES ALREADY COMMITTED TO PEN COMPUTING TECHNOLOGY INCLUDING APPLE COMPUTER INC AND JAPAN'S SHARP CORP TANDY CORP'S GRID SYSTEMS CORP UNIT AND AMERICAN TELEPHONE & TELEGRAPH CO'S NCR CORP UNIT AST'S PENTOP PRODUCT IS MANUFACTURED UNDER AN ORIGINAL EQUIPMENT MANUFACTURING AGREEMENT WITH TANDY CORP'S TE ELECTRONICS UNIT AND UTILIZES THE PEN TECHNOLOGY OF TANDY'S GRID UNIT THE 55 POUND PRODUCT SELLS FOR UNDER 3000 AND FEATURES UP TO 200 MEGABYTES OF MEMORY IN ITS HARD DRIVE AN EXTENDED BATTERY LIFE AND A SLOT ENABLING USERS TO LINK THE COMPUTER WITH MODEMS AND CONNECT IT TO LOCAL AREA NETWORK EQUIPMENT 9304060063 930406 MARKETING & MEDIA ADVERTISING PHILIP MORRIS TO PUT ITS AD MONEY WHERE ITS MARLBORO PRICE CUTS ARE BY KEVIN GOLDMAN THE MARLBORO MAN WHO FOR YEARS EPITOMIZED THE STRONG SILENT TYPE IS ABOUT TO MAKE SOME NEW NOISE TO BE HEARD ABOVE THE DIN OF DISCOUNT BRANDS PHILIP MORRIS STUNNED WALL STREET AND THE TOBACCO INDUSTRY ON FRIDAY WHEN IT ANNOUNCED AN AGGRESSIVE PRICECUTTING STRATEGY FOR ITS VENERABLE MARLBORO BRAND YESTERDAY THE COMPANY SAID IT WILL BOOST AD SPENDING THIS YEAR IN CONNECTION WITH THE NEW EFFORT BUT MARLBORO IS BEING DOWNRIGHT TACITURN WHEN IT COMES TO MENTIONING ANY PRICE BREAK IN THE ADS IT SIMPLY WON'T BE INCLUDED IN THE ADS AT ALL ALTHOUGH MARLBORO'S AD SPENDING WILL BE MORE THAN ORIGINALLY PLANNED WE WILL ADVERTISE TO INCREASE TRADEMARK EQUITY AND TO GROW THE BRAND A SPOKESWOMAN SAYS PHILIP MORRIS DECLINED TO SAY EXACTLY HOW MUCH THE AD BUDGET WILL RISE BUT THE EXPECTED INCREASE REVERSES EARLIER PLANS TO HOLD MARLBORO'S AD BUDGET FLAT WITH THE 858 MILLION SPENT TO ADVERTISE THE BRAND LAST YEAR IT MEANS MORE BUSINESS FOR AD AGENCY LEO BURNETT WHICH WATCHED MARLBORO'S BUDGET FALL MORE THAN 15 LAST YEAR COMPARED WITH 1991 SPENDING OF JUST OVER 100 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS THE HIGHER PROFILE FOR THE POPULAR REDANDWHITE PACK MAY TRIGGER MORE SPENDING FROM MARLBORO'S LESSER RIVALS AS WELL SO FAR HOWEVER COMPETITORS RJ REYNOLDS WHICH MAKES WINSTON AND SALEM AND LIGGETT GROUP WITH CHESTERFIELD AND LARK AREN'T REVEALING THEIR RESPONSE BUT ONE DISCOUNT RIVAL ALREADY HAS BEGUN SPENDING MORE TO FLOUT ITS PRICE ADVANTAGE AGAINST THE BIGGER BRANDS VICEROY MANUFACTURED BY BROWN & WILLIAMSON CHANGED A FEW YEARS AGO FROM FULLPRICE TO DISCOUNT AND LAST MONTH IT ROLLED OUT ITS FIRST CAMPAIGN IN FOUR YEARS THE FULLPAGE AD IS UNUSUAL IN THAT IT MENTIONS AND SHOWS RIVAL BRANDS DECLARING THERE'S ONE BIG DIFFERENCE BETWEEN VICEROY AND THE OTHERS THE PRICE FRONT AND CENTER IS A BRIGHT PACK OF VICEROYS BEHIND IT ARE PARTLY OBSCURED PACKS OF MARLBORO AND WINSTON THE SLOGAN VICEROY THE RED PACK AND THE RIGHT PRICE THE ADS ARE RUNNING IN SUCH MAINSTREAM MAGAZINES AS TIME ESQUIRE SPORTS ILLUSTRATED AND POPULAR SCIENCE A SPOKESMAN FOR BROWN & WILLIAMSON SAYS THE CAMPAIGN IS OBVIOUSLY DESIGNED TO FOCUS ON THE QUALITY AND AGGRESSIVE PRICING OF THE BRAND VICEROY WILL ALSO POP UP ON BILLBOARDS LATER THIS YEAR EXTOLLING ITS LOWER PRICING MARLBORO'S RIVALS AT THE LOW END MUST WEIGH THE WORTH OF A BIGGER AD BUDGET AGAINST THE DAMAGE TO THEIR BOTTOM LINE WITH PROFITS IN WHAT HAS BEEN THE RICHEST CONSUMER MARKET ON A STEEP SLIDE PHILIP MORRIS ALONE EXPECTS ITS NEW MARLBORO DISCOUNTING EFFORT TO LEAD TO A 2 BILLION REDUCTION IN EARNINGS THIS YEAR MANY COMPANIES MIGHT WANT TO THINK TWICE ABOUT THROWING MORE MONEY INTO ADVERTISING BUT TOBACCO MERCHANTS ARE FEVERISHLY COMPETING TO SNARE A PORTION OF THE FINITE NUMBER OF SMOKERS THE ONLY WAY TO GROW BUSINESS IS TO TAKE IT OUT OF SOMEONE ELSE'S HIDE SAYS ALVIN ACHENBAUM FORMER VICE CHAIRMAN OF SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES AND NOW PRESIDENT OF HIS OWN MARKETING AND MANAGEMENT CONSULTING FIRM ADVERTISING WORKED FOR MARLBORO AND ESTABLISHED A STRONG IDENTITY FOR IT NOW EVERYONE IS WAITING TO SEE WHETHER OTHERS WILL RETALIATE THROUGH AGGRESSIVE ADVERTISING MARLBORO SHIPMENTS DROPPED 56 LAST YEAR AND FELL ANOTHER 8 IN THE FIRST QUARTER TO PUT SOME LIFE BACK INTO THE BRAND THE COMPANY IS USING COUPONS BUYSOMEGETSOMEFREE OFFERS AND IN SOME MARKETS OUTRIGHT PRICE CUTS IT ALSO PLANS TO EXTEND THE MARLBORO ADVENTURE TEAM ITS MARKETING AND PROMOTIONAL EFFORT DESPITE REPORTS FROM WHOLESALERS THAT THE EFFORT HASN'T BEEN ALL THAT SUCCESSFUL THE COMPANY ISN'T CLEAR YET ON HOW IT WILL EXTEND THE PROMOTION WHICH INCLUDES AS A PRIZE A WHITEWATER RAFTING TRIP IN GRAND JUNCTION COLO SMOKERS CAN ALSO GET SPORTING GEAR AND CLOTHES BY REDEEMING COUPONS ON THE BACK OF MARLBOROS THAT MARLBORO IS CONTINUING WITH THE PROMOTION IS WELCOME NEWS TO ANTHONY KARAKAS A CIGARETTE DISTRIBUTOR WITH MARCUS DISTRIBUTORS BASED IN ST LOUIS ADVERTISING IS GOOD HE SAYS BUT COUPONING IS FAR BETTER BY DOING COUPONING PLUS ADVERTISING THAT WILL INCREASE SALES ADVERTISING ALONE ISN'T SUFFICIENT THE MOVES BY MARLBORO COME AS CIGARETTE ADVERTISING IN GENERAL HAS LEVELED OFF FROM ITS NOSE DIVE OF THE LAST DECADE ACCORDING TO PUBLISHERS INFORMATION BUREAU CIGARETTE ADVERTISING IN PAGES ACTUALLY INCREASED BY 89 TO 4235 PAGES IN THE FIRST TWO MONTHS OF THIS YEAR OVER THE SAME PERIOD A YEAR EARLIER CIGARETTE AD SPENDING ROSE AS WELL BY 34 TO 257 MILLION BUT JAMES R GUTHRIE EXECUTIVE VICE PRESIDENT OF MARKETING AND DEVELOPMENT AT PUBLISHERS INFORMATION BUREAU STRESSES THAT THIS ISN'T A RECOVERY OF ANY SORT ONE LEADING MADISON AVENUE EXECUTIVE SAYS PRIVATELY THAT THE PRICE WAR SPARKED BY MARLBORO HAS TO RESULT IN MORE AD SPENDING WHEN YOU FIGHT FOR A SHARE OF THE TURF HE SAYS YOU INTENSIFY YOUR EFFORTS AND INCREASING AD SPENDING IS INEVITABLE THE EXECUTIVE IS OF COURSE SPEAKING HOPEFULLY HE HANDLES A MAJOR TOBACCO MANUFACTURER OMNICOM COMPENSATION OMNICOM GROUP THE ADAGENCY HOLDING COMPANY SAID CHAIRMAN BRUCE CRAWFORD RECEIVED 13 MILLION IN SALARY AND BONUS IN 1992 AN 11 INCREASE FROM 1991 FRED MEYER CHIEF FINANCIAL OFFICER RECEIVED 862500 IN 1992 A 12 INCREASE ALLEN ROSENSHINE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AGENCY BBDO RECEIVED 1186250 LAST YEAR A 9 INCREASE FROM 1991 AND KEITH REINHARD CHAIRMAN AND CHIEF EXECUTIVE OF DDB NEEDHAM RECEIVED 905138 A 1 INCREASE BY EXERCISING STOCK OPTIONS MSSRS CRAWFORD AND MEYER EACH EARNED A PAPER PROFIT IN 1992 OF 611063 AND 560531 RESPECTIVELY NYS LOTTERY WPP GROUP'S J WALTER THOMPSON OMNICOM'S BBDO AND SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES HAVE DROPPED OUT OF THE RACE FOR THE BIG NEW YORK STATE LOTTERY ACCOUNT CURRENTLY IN A CONTRACTUAL REVIEW A LOTTERY SPOKESWOMAN CONFIRMED TRADEJOURNAL REPORTS THAT THE REMAINING CONTENDERS IN THE 25 MILLION TO 30 MILLION PITCH ARE AYER BOZELL GREY ADVERTISING D'ARCY MASIUS BENTON & BOWLES INTERPUBLIC GROUP'S MCCANNERICKSON SAATCHI & SAATCHI ADVERTISING AND THE INCUMBENT DDB NEEDHAM ALL IN NEW YORK 9304060062 930406 BUSINESS BRIEF GRANITE CONSTRUCTION CO RECEIVED A 32 MILLION CONTRACT TO BUILD A PARALLEL RUNWAY AT THE RENO CANNON AIRPORT IN RENO NEV LUBRIZOL CORP WILL COMBINE ITS UNITS LUBRIZOL PETROLEUM CHEMICALS CO AND LUBRIZOL PERFORMANCE PRODUCTS CO TO FORM ONE ORGANIZATION TECHNICAL COMMUNICATIONS CORP WON A 14 MILLION CONTRACT FOR ADVANCED DATA ENCRYPTION PRODUCTS AND A CENTRALIZED KEY AND NETWORK MANAGEMENT SYSTEM FROM AN UNDISCLOSED EUROPEAN CLIENT BOLT BERANEK & NEWMAN INC ENTERED INTO AN AGREEMENT TO SELL THE ASSETS OF ITS ADVANCED SIMULATION BUSINESS TO LORAL CORP FOR 6 MILLION IN CASH AND THE ASSUMPTION OF CERTAIN LEASE OBLIGATIONS FLIGHTSAFETY INTERNATIONAL RECEIVED A 15YEAR 23 MILLION AIR FORCE CONTRACT TO TRAIN PILOTS AND FLIGHT ENGINEERS FOR THE C135 AIRCRAFT ALLOU HEALTH & BEAUTY CARE INC COMPLETED ITS ACQUISITION OF CLOSELY HELD M SOBOL INC FOR 16 MILLION SMITH CORONA CORP REACHED A MARKETING ARRANGEMENT WITH THREE AFFILIATED BEIJINGBASED COMPANIES TO MARKET ITS LINE OF ELECTRONIC TYPEWRITERS AND OFFICE EQUIPMENT IN CHINA 9304060061 930406 BUSINESS BRIEF JEFFERSONPILOT CORP FIRM AND DISSIDENT HOLDERS AGREE TO RESOLVE LAWSUITS JEFFERSONPILOT CORP AND A GROUP OF DISSIDENT SHAREHOLDERS WITH WHOM IT HAS BEEN LOCKED IN A LONG BATTLE AGREED TO RESOLVE ALL LITIGATION TERMS OF THE AGREEMENT BETWEEN THE GREENSBORO NC INSURANCE CONCERN AND THE DISSIDENT SHAREHOLDERS LED BY LOUISE PRICE PARSONS SET UP RULES OF CORPORATE GOVERNANCE PROVIDING FOR 75 OF THE BOARD TO BE MADE UP OF INDEPENDENT DIRECTORS AND FOR THE COMPANY TO COMPLY WITH MANDATORY RETIREMENT AGES OF 65 FOR EXECUTIVES AND 72 FOR DIRECTORS THE AGREEMENT ALSO GIVES MS PARSONS AND RESOURCES PLANNING CORP WHICH IS CONTROLLED BY HER HUSBAND DONALD PARSONS A SEVENYEAR OPTION TO ACQUIRE 125000 SHARES OF JEFFERSONPILOT COMMON STOCK AT 55125 A SHARE IN TURN THE DISSIDENTS AGREED NOT TO SUE THE COMPANY OR WAGE ANOTHER PROXY FIGHT AGAINST IT FOR SEVEN YEARS THE SETTLEMENT IS SUBJECT TO COURT AND SHAREHOLDER APPROVAL SHAREHOLDERS WILL VOTE ON THE SETTLEMENT MAY 3 9304060060 930406 MUTUAL FUNDS ZEROCOUPON RETURNS LEAD BOND FUNDS WITH AVERAGE 705 GAIN IN 1ST QUARTER BY ROBERT MCGOUGH AND JONATHAN CLEMENTS STAFF REPORTERS OF THE WALL STREET JOURNAL INVESTORS HAVE BEEN POURING CASH INTO BOND MUTUAL FUNDS AND THE FUNDS REPAID THE FAVOR IN THE FIRST QUARTER TAXABLE BOND FUNDS REAPED TOTAL RETURNS OF 397 ON AVERAGE IN THE QUARTER INCLUDING BOTH PRICE GAINS AND REINVESTED DIVIDENDS A RISING BOND MARKET GAVE MANY BOND MUTUAL FUNDS RETURNS IN EXCESS OF THE DIVIDENDS THEY PAID OUT HELPING THEM BEAT THE 329 AVERAGE RETURN OF STOCK FUNDS BUT IN VIEW OF THE RECENT UPTICK IN BOND YIELDS IMMEDIATELY FOLLOWING THE END OF THE QUARTER THE OUTLOOK FOR BOND FUNDS HAS BECOME LESS CLEAR ACCORDING TO SOME FUND MANAGERS AFTER A FAIRLY VOLATILE QUARTER WE HAVE A REAL MARKET HERE WITH SOME PEOPLE STILL BULLISH AND SOME PEOPLE BEARISH AS OPPOSED TO FEBRUARY WHEN EVERYBODY WAS BULLISH SAYS WILLIAM VERONDA A SENIOR VICE PRESIDENT WITH DENVER'S INVESCO FUNDS GROUP I SEE A CONTINUED CHOPPY MARKET WITH 650 BEING THE LOW SIDE FOR YIELDS ON THE BENCHMARK 30YEAR TREASURY BOND AND 725 BEING THE HIGH SIDE OVER THE NEXT THREE MONTHS THE YIELD ON 30YEAR TREASURY BONDS WAS 702 YESTERDAY BOND PRICES MOVE IN THE OPPOSITE DIRECTION OF BOND YIELDS ZEROCOUPON BOND FUNDS AS A GROUP EARNED THE BEST RETURNS IN THE FIRST QUARTER WITH A 705 GAIN ON AVERAGE ACCORDING TO LIPPER ANALYTICAL SERVICES INC A SUMMIT NJ FUND RESEARCH FIRM THESE FUNDS CAPTURE BIG RETURNS IN RISING BOND MARKETS AND LOSE MONEY QUICKLY IN DECLINING MARKETS BECAUSE THEIR PORTFOLIOS CONSIST OF ZEROCOUPON BONDS WHOSE PRICES SWING SHARPLY IN RESPONSE TO CHANGES IN INTEREST RATES ZEROCOUPON FUNDS LED ALL OTHER TYPES OF BOND FUNDS FOR THE 12 MONTHS ENDED MARCH 31 WITH A TOTAL RETURN OF 2187 HIGHYIELDING JUNKBOND FUNDS WHICH INVEST IN THE SPECULATIVE BONDS ISSUED BY COMPANIES WITH BELOWINVESTMENTGRADE CREDITS TURNED IN ANOTHER STRONG QUARTER WITH A GAIN OF 672 IN THE QUARTER AND 1574 FOR THE 12 MONTHS THROUGH MARCH 31 A STRONG TREASURY RALLY AND A STABLE STOCK MARKET CREATED AN IDEAL CONDITION FOR THE HIGHYIELD MARKET SAYS DAVID BREAZZANO COMAER OF FIDELITY CAPITAL & INCOME UP 934 IN THE FIRST QUARTER PRICES OF JUNK BONDS ROSE DESPITE THE HEAVY SUPPLY OF NEW ISSUES DURING THE QUARTER SAYS MR BREAZZANO IN MANY CASES THE NEW ISSUES REFINANCED OLDER HIGHERYIELDING DEBT IMPROVING THE CREDIT QUALITY OF JUNKBOND ISSUERS AND BOOSTING JUNKBOND PRICES IN THE PROCESS CONVERTIBLEBOND FUNDS ALSO CONTINUED THE STRONG PERFORMANCE THEY HAD IN 1992 GAINING 571 IN THE QUARTER ON AVERAGE LIKE JUNK BONDS CONVERTIBLE BONDS BENEFITED FROM THE COMBINATION OF RISING BOND AND STOCK PRICES SAYS ANDREW DAVIS COMANAGER OF VENTURE ADVISERS' RPF CONVERTIBLE SECURITIES UP 960 IN THE FIRST QUARTER BOTH ENGINES WERE FIRING IN THE SAME DIRECTION HE SAYS MR DAVIS SAID HIS FUND BENEFITED FROM INVESTING IN THE CONVERTIBLE BONDS OF BANKS AND INSURANCE COMPANIES AND ALSO CYCLICAL COMPANIES WHOSE FORTUNES RISE AND FALL WITH THE ECONOMY THE FUND ALSO INVESTS IN REAL ESTATE INVESTMENT TRUSTS MR DAVIS RUNS THE YEAROLD FUND WITH HIS FATHER SHELBY DAVIS WHO MANAGES NEW YORK VENTURE ONE OF THE FIVE BESTPERFORMING STOCK FUNDS OF THE PAST 10 YEARS TAXFREE MUNICIPALBOND FUNDS ACTUALLY LOST MONEY DURING THE MONTH OF MARCH AS A FLOOD OF NEW ISSUES CAUSED OUR MARKET TO BACK UP A BIT SAYS PAMELA HUNTER MANAGER OF VISTA TAXFREE INCOME FUND UP 549 IN THE QUARTER AND 1881 IN THE 12 MONTHS THROUGH MARCH 31 BUT FOR THE FULL THREE MONTHS LONGERTERM MUNI FUNDS GAINED 38 FALLING INTEREST RATES DIDN'T HELP ALL BOND FUNDS ADJUSTABLERATE MORTGAGE FUNDS FOR INSTANCE HAD A TOTAL RETURN OF ONLY 135 IN THE QUARTER ON AVERAGE THE MARKET RALLY TOOK PLACE MOSTLY IN LONGTERM BONDS LEAVING SHORTERTERM ISSUES LIKE ADJUSTABLERATE MORTGAGE BONDS WITH SMALLER GAINS MOREOVER THE INTEREST PAYMENTS OF THESE SECURITIES EVENTUALLY ADJUST DOWNWARD ALONG WITH INTEREST RATES SOME FUNDS HELD EXOTIC DERIVATIVE SECURITIES THAT LOST MONEY WHEN INTEREST RATES FELL INVESTORS SHOVELED MONEY INTO BOND FUNDS AT A HIGH RATE GIVING THEM 214 BILLION IN JANUARY AND FEBRUARY COMBINED HOW SHOULD INVESTORS POSITION THEIR BOND FUND PORTFOLIOS FOR THE REST OF THE YEAR IAN MACKINNON HEAD OF FIXED INCOME AT VANGUARD GROUP RECKONS THAT INVESTORS SHOULD STICK WITH FUNDS THAT BUY INTERMEDIATETERM BONDS THOSE WITH MATURITIES OF THREE TO 10 YEARS HE FORESEES INTEREST RATES CLIMBING MODESTLY DURING THE REST OF THE YEAR AS A RESULT BONDFUND SHARE PRICES ARE LIKELY TO SLIP BUT MR MACKINNON BELIEVES HOLDERS OF INTERMEDIATETERM BOND FUNDS WILL STILL MAKE MONEY BECAUSE THEY WILL PICK UP MORE IN INTEREST INCOME THAN THEY WILL LOSE FROM FALLING FUND SHARE PRICES WITHIN THE INTERMEDIATE SECTOR MR MACKINNON SUGGESTS PICKING A FUND DEPENDING ON YOUR INTESTINAL FORTITUDE SHORTERTERM BOND FUNDS WHICH ARE YIELDING AROUND 48 GIVE YOU THE MOST PROTECTION AND PROBABLY ARE THE SAFEST BET HE SAYS THOSE WITH STRONGER STOMACHS MAY WANT TO TRY FUNDS WITH MATURITIES OF CLOSER TO 10 YEARS WHICH ARE CURRENTLY YIELDING AROUND 54 INVESCO'S MR VERONDA ALSO FAVORS INTERMEDIATETERM BONDS THEY REPRESENT A GOOD TRADEOFF FOR MOST PEOPLE ESPECIALLY FOR THOSE WHO HAVE TRADITIONALLY BEEN MONEY MARKET INVESTORS HE SAYS BUT MR VERONDA SAYS THE BEST BET AMONG BOND FUNDS MAY ACTUALLY BE HIGHYIELD JUNKBOND FUNDS HE THINKS JUNK FUNDS WITH THEIR 9 AVERAGE YIELD ARE AN ATTRACTIVE ALTERNATIVE TO STOCKS IN ADDITION MR VERONDA BELIEVES THAT JUNK FUNDS HAVE LESS TO FEAR THAN OTHER BOND FUNDS IF INTEREST RATES RISE OR CONCERNS ABOUT INFLATION SPREAD TO ME IT LOOKS LIKE A MARKET WHERE HIGHYIELD BONDS WILL DO RELATIVELY WELL HE SAYS 9304060059 930406 BUSINESS BRIEF AMES DEPARTMENT STORES INC NET LOSS OF 239 MILLION POSTED FOR FIVEWEEK PERIOD AMES DEPARTMENT STORES INC WHICH EMERGED FROM BANKRUPTCY COURT PROTECTION DEC 30 REPORTED A LOSS OF 223 MILLION BEFORE INTEREST TAXES RESTRUCTURING AND CHAPTER 11 EXPENSES FOR THE FIVE WEEKS ENDED JAN 30 NET LOSS WAS 239 MILLION ON NET SALES OF 1423 MILLION AMES SAID RESULTS FOR THE YEARAGO PERIOD WERE NOT COMPARABLE BECAUSE OF THE COMPANY'S USE IN THE LATEST FIVE WEEKS OF FRESHSTART REPORTING METHODS A POSTBANKRUPTCY ACCOUNTING APPROACH REFLECTING BALANCESHEET ADJUSTMENTS AMES ROCKY HILL CONN SAID ITS JANUARY SAMESTORE SALES BASED ON SALES OF 309 STORES OPEN A YEAR OF MORE ROSE 49 FROM A YEAR AGO A COMPANY SPOKESWOMAN SAID AMES EXPECTS TO REPORT ITS FIRST FULL QUARTER ON A POSTBANKRUPTCY BASIS IN JUNE PETER THORNER PRESIDENT AND CHIEF OPERATING OFFICER SAID HE WAS ENCOURAGED BY THE IMPROVED COMPARABLESTORE SALES WHICH HAVE RISEN MODESTLY FOR THREE CONSECUTIVE MONTHS HE SAID HE EXPECTED OPERATING IMPROVEMENTS TO CONTINUE THROUGH THE YEAR 9304060058 930406 SOME YEAR IT MIGHT BE THE BULLS WHO GET ADVICE FROM THE BELLES BY CARLEE R SCOTT STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE POPULARITY OF WOMEN'S BASKETBALL IS EXPLODING ATTENDANCE AT WOMEN'S COLLEGE GAMES HAS DOUBLED IN THE PAST DECADE AND THE NCAA WOMEN'S TOURNAMENT TITLE GAME SUNDAY WAS TELEVISED NATIONALLY SO WHERE DO WOULDBE WOMEN BASKETBALL STARS GO FOR ADVICE IN THE WINDY CITY THEY GO STRAIGHT TO THE TOP TO THE WORLDCHAMPION CHICAGO BULLS MORE THAN 800 WOMEN WELL MOSTLY TEENAGE AND PRETEEN GIRLS SHOWED UP RECENTLY AT A FOR WOMEN ONLY BASKETBALL CLINIC COSPONSORED BY THE BULLS AND THE HYATT REGENCY HOTEL HERE INTEREST WAS SO KEEN THAT ATTENDEES BEGAN ARRIVING HOURS BEFORE THE EVENT HELD IN THE HOTEL'S GRAND BALLROOM WHERE A MAKESHIFT COURT WITH PORTABLE HOOPS HAD BEEN SET UP NINEYEAROLD ELIZABETH KOGIONES HOPED A BETTER UNDERSTANDING OF THE SPORT WOULD HELP HER BOND WITH AN OLDER BROTHER WHEN HE TRIES TO TEACH ME I DON'T UNDERSTAND A WORD HE'S SAYING HE SAYS DO THIS DO THIS' AND I DON'T KNOW WHAT HE'S TALKING ABOUT RACKEL SMITH ALSO NINE SIMPLY WANTED TO LEARN TO SLAM DUNK COACH ANN MARINO BROUGHT THE CHAMPION FIFTHGRADE BASKETBALL TEAM FROM ST DAMIAN SCHOOL IN OAK FOREST ILL HOPING THEY'D PICK UP A FEW TIPS FOR MOST OF THE PARTICIPANTS WHO PAID 5 EACH TO ATTEND THE CHARITY EVENT THE BIG LURE WAS THE BULLS TENYEAROLD FORWARD KATIE MCDERMOTT CONCEDED THAT SHE CAME ONLY BECAUSE I LOVE THE BULLS AND COACH MARINO CONFIDED THAT THE EVENT GAVE HER A CHANCE TO SEE HER FAVORITE BULL VETERAN GUARD JOHN PAXSON WHEN THE BALLROOM DOORS OPENED THE GIRLS AND WOMEN DASHED TO GET AS CLOSE TO THE PLAYERS AS POSSIBLE IT DIDN'T SEEM TO MATTER THAT STARS MICHAEL JORDAN AND SCOTTIE PIPPEN DIDN'T SHOW THEY SCREAMED JUST AS LOUDLY FOR MR PAXSON AND ROOKIE COREY WILLIAMS BOTH OF WHOM HAD TO SWIFTLY EXIT THROUGH A SIDE DOOR WHEN THE TWOHOUR SESSION ENDED THE PLAYERS REVIEWED BASKETBALL TERMS RULES AND PLAYS OFTEN USED BY THE TEAM AND THEY DEMONSTRATED DRIBBLING AND BALLHANDLING SKILLS ENTHUSIASM SOARED WHENEVER THE PLAYERS TAPPED A VOLUNTEER TO HELP DEMONSTRATE A PLAY OR TECHNIQUE MR PAXSON SAYS THE TURNOUT SHOWS THAT BASKETBALL ISN'T JUST A MALE SPORT FOR ROOKIE WILLIAMS ALL THE ATTENTION WAS GRATIFYING I FELT LIKE MICHAEL JACKSON OUT THERE 9304060057 930406 BUSINESS BRIEF UNOCAL CORP JURY VERDICT OF 739 MILLION AGAINST UNIT TO BE APPEALED UNOCAL CORP SAID IT PLANS TO APPEAL A 739 MILLION JURY VERDICT AGAINST ITS PRAIRIE PRODUCING CO OIL AND GAS SUBSIDIARY IN A LEASEROYALTY LAWSUIT BROUGHT BY ANGELINA HARDWOOD LUMBER CO A JURY AWARDED CLOSELY HELD ANGELINA HARDWOOD LUFKIN TEXAS 239 MILLION IN ACTUAL DAMAGES AND COURT COSTS AND 50 MILLION IN PUNITIVE DAMAGES FOR ITS CLAIMS OF FRAUD IN THE LONGRUNNING DISPUTE OVER MINERAL RIGHTS TO A LOUISIANA PROPERTY THE VERDICT WAS UPHELD MARCH 25 BY JUDGE GERALD GOODWIN IN STATE COURT IN ANGELINA TEXAS THE DISPUTE WHICH HAS SPAWNED THREE SEPARATE SUITS SINCE 1988 PREDATES UNOCAL'S OWNERSHIP OF PRAIRIE PRODUCING WHICH IT ACQUIRED IN 1990 FROM PLACER DOME INC VANCOUVER BRITISH COLUMBIA A SPOKESWOMAN FOR UNOCAL BASED IN LOS ANGELES CALLED THE VERDICT INEXPLICABLE AND SAID THE COMPANY HADN'T TAKEN ANY RESERVES AGAINST THE POTENTIAL LIABILITY 9304060056 930406 INTERNATIONAL JAPANESE FIRMS HAVE LEARNED TO LIVE WITH THE RISING COSTS OF A SURGING YEN BY QUENTIN HARDY AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO AFTER YEARS OF WATCHING THE YEN STRENGTHEN AGAINST THE DOLLAR THEREBY MAKING THEIR PRODUCTS MORE EXPENSIVE AROUND THE WORLD JAPANESE COMPANIES SEEM TO HAVE GROWN USED TO COPING HOWEVER PAINFULLY EVERY ONEYEN INCREASE AGAINST THE DOLLAR FORCES US TO ABSORB 350 MILLION YEN 31 MILLION IN COSTS SAYS MASARU SAKUMA SPOKESMAN AT OFFICEEQUIPMENT MAKER RICOH CO WE'LL TRY TO CUT COSTS WE MAY TRY TO RAISE PRICES THE STRONGER YEN HE SAYS ISN'T A PLUS BUT WE CAN ABSORB IT THE YEN HAS GAINED 9 AGAINST THE DOLLAR SINCE DECEMBER IT WAS QUOTED IN LATE TRADING YESTERDAY IN NEW YORK AT 11370 TO THE DOLLAR AND 11375 ON FRIDAY THE SURGE HAS PROMPTED JAPANESE CORPORATIONS TO LOOK FOR WAYS TO LOWER DOMESTIC PRODUCTION COSTS AND INCREASE PRODUCTION OVERSEAS MANY ARE PLANNING FOR AN EVEN STRONGER YEN KYOCERA CORP IS NOW REVIEWING OPERATIONS TO WORK PROFITABLY AT AN EXCHANGE RATE OF 100 YEN SAYS SPOKESMAN AKIHIKO TOYOTANI KYOCERA IS A MAJOR MAKER OF ELECTRICAL PRODUCTS AND ADVANCED CERAMICS MATSUSHITA ELECTRIC INDUSTRIAL CO HAD PLANNED FOR A CONSIDERABLE PORTION OF ITS EXPORTS FOR THE NEXT SIX MONTHS TO LEAVE JAPAN AT BETWEEN 120 AND 125 YEN TO THE DOLLAR AND IT HEDGED AGAINST A CURRENCY SHIFT OVER THAT PERIOD A COMPANY OFFICIAL SAID THE CONSUMER ELECTRONICS COMPANY WILL DEAL WITH THE NEW RATE OVER THE LONGER HAUL BY EXPANDING OVERSEAS PRODUCTION CUTTING COSTS AT HOME AND IMPORTING MORE RAW MATERIALS AND PARTS FROM OVERSEAS WHERE THE PURCHASING POWER OF THE YEN IS STRONGER A FEW ECONOMISTS THINK THAT THE YEN'S RALLY IS OVERDONE AND THAT THE CURRENCY WILL WEAKEN AT LEAST TEMPORARILY HARUMI ICHIKI ANALYST AT SUMITOMO LIFE RESEARCH INSTITUTE CALLS THE YEN CONSIDERABLY OVERSHOT BECAUSE OF A BIG INFLUX OF FOREIGN INVESTMENT INTO THE JAPANESE STOCK MARKET IN THE PAST SEVERAL WEEKS HE THINKS JAPAN WILL LOWER INTEREST RATES THIS SUMMER AND THAT THE YEN WILL WEAKEN TO AS LITTLE AS 122 TO THE DOLLAR BUT FOR EVERY MILD YEN BEAR IT SEEMS THERE'S A RAGING BULL HIROAKI HASHIGUCHI ANALYST AT TOKAI BANK LTD BELIEVES THE YEN WILL REACH 100 TO THE DOLLAR BY EARLY 1994 AS THE JAPANESE ECONOMY SEES A RECOVERY BETWEEN SEPTEMBER 1993 AND MARCH 1994 HE SAYS TRUST IN THE YEN WILL BE FURTHER ENHANCED THE CURRENCY'S STRENGTH COMES PRIMARILY FROM JAPAN'S HUGE TRADE SURPLUS THE BULLS ALSO CITE OTHER FACTORS THEY SAY WILL KEEP THE YEN STRONG JAPAN'S ECONOMIC SLUMP WHICH IS ENCOURAGING BUSINESSES TO KEEP MONEY AT HOME RATHER THAN INVEST ABROAD LOW INFLATION JAPAN'S ECONOMY WHICH IS STRONGER THAN THAT OF MANY INDUSTRIALIZED NATIONS EVEN PRIME MINISTER KIICHI MIYAZAWA LAST WEEK CALMLY SAID THAT THE GOVERNMENT ACCEPTED A STRONGER YEN AS A CONSEQUENCE OF JAPAN'S ACCOUNT AND TRADE SURPLUSES ODDLY ENOUGH MASARU HAYAMI CHAIRMAN OF NISSHO IWAI CORP A MAJOR TRADING COMPANY CHEERED A STRONGER YEN IN AN ARTICLE HE WROTE FOR A JAPANESE FINANCIAL NEWSPAPER LAST WEEKEND THE YEN'S APPRECIATION HAS NEVER DESTROYED JAPANESE INDUSTRY MR HAYAMI WROTE RATHER IT HAS HELPED BY PROMPTING COMPANIES TO STREAMLINE OPERATIONS AND RESULTS IN LOWER PRICES FOR IMPORTED MATERIALS 9304060055 930406 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ALBERT R KARR LONGTERM CARE'S FOOTHOLD AMONG EMPLOYEES EXPANDS MORE EMPLOYEES WHO TYPICALLY PAY FOR THE GROUP INSURANCE WANT COVERAGE FOR NURSING HOME OR OTHER EXTENDED CARE FOR PARENTS OR THEMSELVES MANY OF THE PEOPLE BUYING IT ARE A LONG WAY FROM NEEDING THE SERVICE SAYS BRENDA YELLEN THE SOUTHERN CALIFORNIA GAS BENEFITS MANAGER BUT THAT FIRM AND KNIGHTRIDDER WILL OFFER SUCH PLANS IN 1994 OF 309 EMPLOYERS SURVEYED BY CONSULTANT TOWERS PERRIN ONES OFFERING LONGTERM INSURANCE TO WORKERS WILL RISE TO 79 BY 1994 FROM 36 LAST YEAR AND 10 IN 1990 BRISTOLMYERS SQUIBB EXPECTED 5 ENROLLMENT FOR ITS TWOYEAROLD OFFERING IT HAS 125 SO FAR THE AVERAGE AGE OF JOHN HANCOCK MUTUAL LIFE INSURANCE'S LONGTERM GROUPPOLICY BUYERS IS 45 FOR EMPLOYEES AND 63 FOR RETIREES BUT COST CONCERNS BLOCK ANY BIGGER LONGTERM CARE CLIMB IT'S NOT AN INEXPENSIVE POLICY HOW MANY WILL BE ABLE TO AFFORD IT ASKS LAURAN BOCIAN A KNIGHTRIDDER OFFICIAL TRANSCO ENERGY MITCHELL ENERGY & DEVELOPMENT RYDER SYSTEM AND SOUTHERN CO AREN'T INTERESTED HIGH PREMIUMS TURN OFF SOUTHWEST AIRLINES AND HOUSTON LIGHTING & POWER LOCKHEED AND HUGHES AIRCRAFT CITE COST AND TAX UNCERTAINTIES AS DETERRENTS HUGHES ALSO WAITS TO SEE WHAT THE GOVERNMENT DOES ON HEALTH CARE AND TAX POLICY CHEVRON MET LAST WEEK WITH A MEMBER OF HILLARY RODHAM CLINTON'S HEALTHCARE TASK FORCE WHICH IS LOOKING AT OPTIONS INCLUDING FEDERALLY SUBSIDIZED LONGTERM CARE FOR POOR PEOPLE HOW TO WIN MAJOR LEAGUE BASEBALL MANAGERS NEED A GOOD MATCH WITH PLAYERS AS IN ANY FIELD A BASEBALL CHIEF'S SUCCESS DEPENDS MORE ON HIS CHEMISTRY WITH THE TEAM THAN HIS OR THE PLAYERS' SEPARATE TALENTS SAYS LAWRENCE SOUTHWICK A UNIVERSITY OF BUFFALO MANAGERIAL ECONOMIST AN ANALYSIS COAUTHORED WITH KENNETH CHAPMAN AT CALIFORNIA STATE UNIVERSITY AT NORTHRIDGE LOOKS AT THE WONLOSS RECORDS OF EACH MANAGERTEAM PAIR AND CONTENDS THAT HITTING FIELDING AND PITCHING ARE NOT CHANGED BY THE MANAGER THE RESEARCHERS LOOKED AT MANAGERS FROM 1930 TO 1988 USING THIS EQUATION WHERE K MEANS ALL MANAGERS MINUS CONNIE MACK THE PHILADELPHIA ATHLETICS OWNERMANAGER FOR 50 YEARS THE AUTHORS THREW HIM OUT OF THE GAME FOR STATISTICAL REASONS CONSIDERING MANAGERS WHO SWITCH TEAMS MR SOUTHWICK SAYS THE REAL QUALITY WON'T COME OUT UNTIL THEY'VE FOUND THE RIGHT TEAM THE ECONOMISTS FOUND FOR INSTANCE THAT SPARKY ANDERSON FIT BETTER AT CINCINNATI THAN DETROIT A CLUE HIS WONLOSS PERCENTAGES ARE 596 FOR THE REDS 525 FOR THE TIGERS A SPECIAL MEETING OF THE AMERICAN INSTITUTE OF CHEMICAL ENGINEERS' ETHICS COMMITTEE IS SPURRED BY THE ARREST OF NIDAL AYYAD A RUTGERS UNIVERSITY CHEMICAL ENGINEERING GRADUATE IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING BURTON DAVIDSON HEAD OF RUTGERS' CHEMICAL AND BIOCHEMICAL ENGINEERING DEPARTMENT SAYS ITS CURRICULUM STRESSES SAFETY AND ETHICS AND DOESN'T TEACH EXPLOSIVES OR BOMBMAKING USING AND DEALING FULLY 40 OF 100 COMPANIES SURVEYED BY THE INSTITUTE FOR A DRUGFREE WORKPLACE HAVE HAD A WORKER CONVICTED OF SELLING DRUGS AT WORK IN AN EARLIER POLL OF OVER 1000 EMPLOYEES 32 KNEW OF THE ILLEGAL SELLING OF DRUGS AT WORK 8 HAD BEEN OFFERED DRUGS ON THE JOB TAPPING UNIONS LABOR SECRETARY REICH NAMES JOYCE MILLER VICE PRESIDENT OF THE CLOTHING AND TEXTILE WORKERS AS EXECUTIVE DIRECTOR OF THE GLASS CEILING COMMISSION TO STUDY BARRIERS TO ADVANCEMENT IN CORPORATE EXECUTIVE RANKS BY WOMEN AND MINORITIES PRESIDENT CLINTON NAMES COMMISSIONER TONY GALLEGOS ACTING CHAIRMAN OF THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION THE EEOC'S FIRST HISPANIC BOSS NEW SHORTAGE SKILLS ARE LISTED TO RELAX SOME IMMIGRATION OBSTACLES THE LABOR DEPARTMENT UNDER A 1990 LAW PROPOSES 10 MORE SHORTAGE OCCUPATIONS TO AVOID THE TIME USUALLY NEEDED TO SHOW THAT AMERICAN WORKERS AREN'T AVAILABLE THE SHORTAGE SKILLS INCLUDE BIOLOGICAL SCIENCE IN 17 STATES COMPUTER SCIENCE IN SEVEN MEDICAL TECHNOLOGY IN FOUR STATES AND TEACHERS OF THE PHYSICALLY HEARING MENTALLY AND OTHERWISE IMPAIRED IN NEW YORK GENERAL PRACTITIONERS INTERNISTS PEDIATRICIANS OBSTETRICIANS AND GYNECOLOGISTS ARE DEEMED IN SHORT SUPPLY IN WEST VIRGINIA WHERE 11 COUNTIES LACK ANY PRENATAL OR OBSTETRIC CARE A GOVERNOR'S TASK FORCE SAID RECENTLY THE SHORTAGES ALSO INCLUDE CHINESE AND JAPANESEFOOD COOKS IN SEVEN STATES AND WASHINGTON DC COMMENTS ON THE PROPOSAL ARE DUE APRIL 19 THE PROGRAM WILL BE REASSESSED IN 1994 THE CHECKOFF IN THIS MONTH'S MARCH OF DIMES HEALTHIERBABIES WALKATHON FUNDRAISER LEVI STRAUSS AND HAGGAR APPAREL PLANTS IN THE RIO GRANDE VALLEY COMPETE INTENSELY THE LOSING TEAM'S CAPTAIN MUST WEAR A PAIR OF THE RIVAL'S PANTS AS HE OR SHE IS DRIVEN AROUND THE PARKING LOT IN A WHEELBARROW IF YOU'RE STUCK AT PARIS'S DEGAULLE AIRPORT YOU CAN USE A SOUNDPROOF CUBICLE IN THE COCOON HOTEL WITH A BED TV PHONE COMPUTER FAX AND TRILINGUAL SECRETARY SAYS ENTREPRENEUR MAGAZINE 9304060054 930406 MEDIA TIME TCI MULL PLAN FOR TURNER ASSETS BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC AND TELECOMMUNICATIONS INC ARE DISCUSSING A PLAN TO DIVIDE THE PRIMARY ASSETS OF TURNER BROADCASTING SYSTEM INC BETWEEN THE TWO MEDIA GIANTS A MOVE THAT COULD EFFECTIVELY BREAK UP TED TURNER'S ENTERTAINMENT AND NEWS EMPIRE ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS MR TURNER THE COMPANY'S CHAIRMAN HAS HELD PREVIOUSLY REPORTED DISCUSSIONS ABOUT A POSSIBLE MERGER OR COMBINATION WITH COMPANIES THAT INCLUDE CAPITAL CITIES/ABC INC AND PARAMOUNT COMMUNICATIONS INC BUT MR TURNER HAS BEEN FRUSTRATED BY HIS INABILITY TO MAKE ANY DEAL WITHOUT THE APPROVAL OF THE CABLE GIANTS LED BY TIME WARNER AND TCI WHICH CONTROL HIS BOARD OF DIRECTORS TIME HOLDS AN 189 STAKE IN TURNER AND HAS THREE SEATS ON ITS 15MEMBER BOARD TCI OWNS 225 OF TURNER AND ALSO HAS THREE BOARD SEATS ACCORDING TO ONE PERSON FAMILIAR WITH THE TALKS THE DIVISION OF TURNER ASSETS IS AMONG MANY THINGS BEING TALKED ABOUT BUT IT HAS COME UNDER MORE INTENSE DISCUSSION IN THE PAST WEEK HE ADDED THAT TIME AND TCI VIEW THE DIVISION OF THE TURNER ASSETS AS ONE MEANS TO RESOLVE THE INTENSIFYING STRUGGLE OVER TURNER'S FUTURE WHILE APPEASING MR TURNER AND KEEPING CONTROL OF THE VALUABLE TURNER PROPERTIES IN CABLE INDUSTRY HANDS MR TURNER WHO COULDN'T BE REACHED TO COMMENT IS SAID TO BE IN SUPPORT OF THE PROPOSAL WHICH COULD BRING HIM A BIG WINDFALL AND LEAVE HIM WITH SOME ASSETS AND NUMEROUS OPTIONS FOR THE FUTURE WHETHER AN OUTRIGHT LIQUIDATION IS CONTEMPLATED HOW THE SPLIT OF THE ASSETS WOULD BE ACCOMPLISHED AND HOW SUCH A DEAL WOULD BE STRUCTURED COULDN'T BE LEARNED BUT UNDER ONE SCENARIO SAID TO BE UNDER DISCUSSION MR TURNER COULD RECEIVE STOCK IN TIME AND TCI IN RETURN FOR HIS STAKE IN TURNER AND COULD RETAIN SOME FORM OF EQUITY AND A KEY MANAGEMENT ROLE IN THE TURNER ASSETS MR TURNER COULD ALSO BE INVOLVED IN A NEW VENTURE WITH ONE OR BOTH OF THE COMPANIES PEOPLE CLOSE TO THE SITUATION SAID TIME TCI AND TURNER ALL DECLINED TO COMMENT HOW A DIVISION OF TURNER ASSETS WOULD AFFECT OTHER CABLE COMPANIES THAT ARE TURNER HOLDERS IS UNCLEAR CABLE OPERATORS COMCAST CORP AND CONTINENTAL CABLEVISION INC FOR EXAMPLE EACH HAVE FAR SMALLER STAKES THAN TIME AND TCI LESS VOTING POWER AND SINGLE BOARD SEATS EXECUTIVES OF THE TWO COMPANIES WEREN'T AVAILABLE TO COMMENT ON THE MATTER AT THE TIME OF A 1987 SHAREHOLDER AGREEMENT BETWEEN TURNER AND THE CABLE GIANTS TIME SECURED THE RIGHT TO CONTROL THE CROWN JEWEL CABLE NEWS NETWORK SHOULD TURNER EVER BE LIQUIDATED TCI HAS CERTAIN RIGHTS REGARDING OTHER ASSETS TURNER ALSO OWNS SUPERSTATION TBS CABLE NETWORK TNT CARTOON PRODUCER HANNABARBERA AND A RECENTLY LAUNCHED CABLE CARTOON NETWORK AND THE MGM FILM LIBRARY TURNER'S BOARD HAS BEEN CONTROLLED BY CABLE OPERATORS SINCE THEY RESCUED MR TURNER FROM DEBT TROUBLES IN 1987 MR TURNER STILL HAS A SUBSTANTIAL STAKE IN THE COMPANY ABOUT 56 VOTING CONTROL AND ABOUT 37 OF THE COMPANY'S EQUITY WITH TURNER'S MARKET CAPITALIZATION AT ABOUT 6 BILLION MR TURNER'S STAKE IS VALUED AT MORE THAN 2 BILLION BUT UNDER THE AGREEMENT WITH THE CABLE HOLDERS MR TURNER IS BARRED FROM VIRTUALLY ALL SIGNIFICANT TRANSACTIONS OR DECISIONS WITHOUT THE BOARD'S APPROVAL AND ALSO CAN'T EASILY CONVERT HIS HOLDINGS TO CASH THE COMPANY RECENTLY BEGAN PAYING DIVIDENDS FOR THE FIRST TIME SINCE THE 1970S IN PART TO HELP MR TURNER CASH IN ON HIS HOLDINGS WITHOUT SELLING STOCK ALTHOUGH MR TURNER HAS INDICATED IN THE PAST THAT HE WOULD NEVER ALLOW HIS COMPANY TO BE BROKEN UP PEOPLE CLOSE TO HIM SAY HE WOULD BE WILLING TO TAKE A MINORITY STAKE IN A LARGER MEDIA EMPIRE IF HE RETAINED A STRONG MANAGEMENT ROLE SOME PEOPLE FAMILIAR WITH THE TALKS SAID A SPLIT OF TURNER'S ASSETS BETWEEN TCI AND TIME COULD RUN INTO MYRIAD PROBLEMS NOT LEAST OF WHICH IS POSSIBLE OPPOSITION IN WASHINGTON THE CABLE INDUSTRY WAS RECENTLY REREGULATED AND STRICT PRICE CONTROLS WILL SOON BE LEVIED ON CABLE OPERATORS TCI AND TIME WARNER ARE THE TWO LARGEST CABLE COMPANIES AND ALREADY HAVE SIGNIFICANT CABLE PROGRAMMING INTERESTS GETTING CONTROL OVER CABLE PROGRAMMING SUCH AS CNN COULD DRAW THE ATTENTION OF LEGISLATORS ALREADY CONCERNED ABOUT VERTICAL INTEGRATION PARTLY TO AVOID THEIR OPPOSITION TCI HAS ALREADY SPUN OFF MOST OF ITS PROGRAMMING ASSETS TO A NEW COMPANY LIBERTY MEDIA CORP OTHER PROBLEMS LOOM SUCH AS HOW TURNER'S CONSIDERABLE DEBT WOULD BE DEALT WITH TIME WARNER IS ALREADY LADEN WITH HEAVY DEBT FROM THE 1989 MERGER OF TIME INC AND WARNER COMMUNICATIONS INC THAT CREATED THE COMPANY TIME WARNER HAS LONG SAID IT WOULD LIKE TO OWN CNN BUT THE COMPANY ALSO SAID SEVERAL MONTHS AGO IT MIGHT MONETIZE OR TRY TO GENERATE CASH FROM ITS TURNER STAKE UNDER NEW RULES ISSUED BY THE FEDERAL COMMUNICATIONS COMMISSION LAST WEEK CABLE OPERATORS MUST ROLL BACK PRICES TO LEVELS OF LAST SEPTEMBER WHICH COULD MEAN A CUTBACK OF 10 OR MORE AND FUTURE PRICE INCREASES WILL BE CLOSELY REGULATED THAT COULD SIGNIFICANTLY REDUCE REVENUE FOR COMPANIES SUCH AS TIME AND TCI EVEN THOUGH THE COMPANIES WILL BE RESTRICTED IN WHAT THEY CAN CHARGE FOR CABLE PROGRAMMING ADDING NEW CABLE NETWORKS SUCH AS THOSE OWNED BY TURNER COULD HELP BOOST REVENUE OVER THE LONG TERM AND WITH PROMISES OF INCREASED CHANNEL CAPACITY ON CABLE SYSTEMS CABLE PROGRAM NETWORKS ARE REGARDED AS HOT PROPERTIES THESE DAYS DANIEL PEARL IN ATLANTA CONTRIBUTED TO THIS ARTICLE 9304060053 930406 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FRANCE'S NEW CENTERRIGHT GOVERNMENT REASSURED OTHER EUROPEAN COMMUNITY COUNTRIES OF ITS PROEC STANCE ON TRADE AND PANEUROPEAN POLICIES FRANCE SAID LAST YEAR'S ECUS PACT TO LIMIT SUBSIDIZED FARM EXPORTS WOULD IMPOSE GREATER BURDENS ON FRENCH FARMERS THAN CALLED FOR IN THE EC OVERHAUL OF ITS COMMON AGRICULTURAL POLICY BUT IT ALSO SAID IT WOULD PRESENT IDEAS FOR THE STALLED GENERAL AGREEMENT ON TARIFFS AND TRADE NEGOTIATIONS TO LIBERALIZE WORLD TRADE THE PREVIOUS FRENCH GOVERNMENT HAD VOWED TO VETO THE ECUS FARM DEAL AND REPEATEDLY ATTACKED THE EC COMMISSION FOR ITS HANDLING OF GLOBAL TRADE NEGOTIATIONS THIS HAD RAISED CONCERNS THAT THE NEW COALITION WOULD ADOPT ANTIEC POLICIES AND SINK THE GATT TALKS YET SOME EC DIPLOMATS SAID FRANCE MAY CONTINUE TO OPPOSE THE ECUS FARM ACCORD WHICH WOULD BLOCK A GATT PACT AS EUROPEAN COMMUNITY STEELMAKERS STRUGGLE TO FIGURE OUT HOW TO SHED 30 MILLION TONS OF OVERCAPACITY BY SEPT 30 A GERMAN STEEL FEDERATION STUDY URGES MAKING ALMOST HALF THE CUTS IN SPAIN'S INEFFICIENT INDUSTRY AND ITALY'S HEAVILY SUBSIDIZED SECTOR TO MEET THE 85 USAGE RATE FOR PROFITABILITY THE CUT IN SPAIN WHERE PRODUCTION IS ONLY 9 OF THE EUROPEAN MARKET WOULD SCRAP AN INDUSTRY RESTRUCTURING AND JOB PRESERVATION PLAN ITALY ACCOUNTS FOR 30 OF EC OVERCAPACITY AND ONLY 18 OF EC OUTPUT THE REPORT SUGGESTS JUST 17 OF THE OVERALL CAPACITY CUTS FOR GERMANY THE LEADER WITH 30 OF TOTAL PRODUCTION PHILIPPINE PRESIDENT FIDEL RAMOS SIGNED LEGISLATION THAT GRANTS HIM EMERGENCY POWERS TO COPE WITH THE ELECTRICITY CRISIS THAT HAS PUT THOUSANDS OF PEOPLE OUT OF WORK AND CRIPPLED THE ECONOMY AFTER YEARS OF NEGLECT AND MISMANAGEMENT IN THE POWER SECTOR SHORTAGES HAVE CAUSED DAILY POWER CUTS AS LONG AS 10 HOURS IN MANILA AND OTHER CITIES THE BILL ALLOWS MR RAMOS TO BUILD GENERATING STATIONS WITHOUT PUBLIC BIDDING REORGANIZE NATIONAL POWER CORP FIX THE UTILITY'S PROFIT MARGIN AND DIVERT EARNINGS FROM THE STATE GAMBLING MONOPOLY TO THE POWER COMPANY JAPAN'S INFLATIONADJUSTED GROSS NATIONAL PRODUCT WILL GROW ONLY 22 IN THE YEAR THAT BEGAN LAST THURSDAY EVEN AFTER TAKING INTO ACCOUNT A NEW FISCALSTIMULUS PROGRAM EXPECTED THIS MONTH DKB RESEARCH INSTITUTE CORP FORECAST THE DAIICHI KANGYO BANK LTD AFFILIATE LAST DECEMBER PREDICTED A 29 EXPANSION THE REDUCTION COMES AS JAPAN IS PREPARING TO LAUNCH A HUGE SPENDING PACKAGE FOCUSED ON PUBLIC WORKS TO BOOST THE STRUGGLING ECONOMY IN THE PAST FISCAL YEAR DKB ESTIMATED JAPAN'S GNP GREW JUST 08 FROM A YEAR EARLIER ALSO A REDUCTION FROM ITS PREVIOUS FORECAST OF 16 NEW DATA ON BRITAIN'S CONSUMER CREDIT AND MONEY SUPPLY PROVIDED MORE EVIDENCE OF A RECOVERY FROM RECESSION ALBEIT A SLOW ONE THOUGH LOWER INTEREST RATES ENCOURAGED CONSUMERS TO SPEND MORE RATHER THAN SAVE THEIR DEBT AND FEAR OF NEW DEBT DISCOURAGED BORROWING DELAYING THE END OF THE RECESSION A SUSTAINED RECOVERY ISN'T EXPECTED UNTIL THE SECOND HALF NET LENDING FELL TO A SEASONALLY ADJUSTED 49 MILLION 744 MILLION IN FEBRUARY FROM 151 MILLION IN MARCH CASH IN CIRCULATION ROSE 11 IN MARCH AND 49 FROM A YEAR EARLIER THE FASTEST GROWTH SINCE JULY 1990 PARTLY REFLECTING THE RISE IN RETAIL ACTIVITY GEORGIA BECAME THE SIXTH FORMER SOVIET REPUBLIC TO ABANDON THE RUBLE BANKS DISTRIBUTED COUPONS AS THE COUNTRY'S INTERIM CURRENCY AS THE SUPPLY OF RUSSIAN RUBLES WAS INADEQUATE TO KEEP UP WITH GEORGIA'S RISING PRICES AND WAGES GEORGIA PLANS TO INTRODUCE ITS OWN CURRENCY THE LARI BUT HASN'T PICKED A DATE ONE GEORGIAN COUPON WAS INITIALLY VALUED AT ONE RUBLE WHICH TRADES AT 692 TO THE DOLLAR INFLATION RATES SLOWED LAST YEAR IN MOST COUNTRIES OUTSIDE LATIN AMERICA AND AFRICA THE INTERNATIONAL LABOR ORGANIZATION SAID AS 60 OF 94 COUNTRIES REPORTED SMALLER PRICE INCREASES THAN IN 1991 THE UNITED NATIONS AGENCY SAID IN GENEVA THAT EASTERN EUROPE MADE GOOD STRIDES DESPITE PAINFUL MARKET REFORMS ANNUAL INFLATION DROPPED IN THE FORMER CZECHOSLOVAKIA TO 11 FROM 54 POLAND TO 45 FROM 63 HUNGARY TO 22 FROM 32 AND EASTERN GERMANY TO 28 FROM 21 BUT ROMANIA LOGGED A 199 RATE TURKEY'S RATE WAS 66 WHILE GREECE RECORDED 14 MOST WESTERN EUROPEAN NATIONS WERE WELL BELOW 5 WITH ICELAND AND DENMARK AT JUST 15 JAPAN CUT INFLATION TO 12 FROM 27 SOUTH KOREA MORE THAN HALVED ITS RATE TO 42 RISES IN THE US SLOWED TO 29 FROM 31 AND IN CANADA TO 21 FROM 38 INFLATION ROCKETED IN BRAZIL TO 1110 FROM 426 ECUADOR TO 60 FROM 49 EL SALVADOR TO 20 FROM 98 AND HAITI TO 18 FROM 66 VENEZUELA AT 32 AND COLOMBIA AT 26 WERE UNCHANGED ARGENTINA SCORED 18 DOWN FROM 84 IN 1991 AND 1344 IN 1990 CHILE'S RATE FELL TO 13 FROM 19 MEXICO ALMOST HALVED ITS RATE TO 12 BRAZIL CONCLUDED THE SELLOFF OF 65 OF NATIONAL STEEL CO LATIN AMERICA'S BIGGEST PRODUCER AND EXPORTER FOR 801 MILLION LESS THAN THE EXPECTED 114 BILLION THE PHILIPPINES DESIGNATED THE FORMER CLARK AIR BASE A SPECIAL ECONOMIC ZONE FOR CONVERSION INTO AN INDUSTRIAL AND BUSINESS CENTER WITH INVESTMENT INCENTIVES 9304060052 930406 BUSINESS BRIEF MARRIOTT CORP SHAREHOLDERS SUE TO BLOCK PROPOSED REORGANIZATION A GROUP OF PREFERRED SHAREHOLDERS WHO OPPOSE MARRIOTT CORP'S PROPOSED REORGANIZATION SUED THE WASHINGTON HOTEL AND REALESTATE COMPANY TO BLOCK THE PLAN THE GROUP WHICH INCLUDES UNION BANK OF SWITZERLAND AND ITS UBS SECURITIES INC UNIT AND HARVARD COLLEGE FILED SUIT FRIDAY IN DELAWARE CHANCERY COURT TO STOP MARRIOTT FROM GOING THROUGH WITH ITS RECENTLY REVISED PLAN TO SPLIT INTO TWO COMPANIES ONE A HIGHGROWTH HOTEL MANAGEMENT COMPANY AND THE OTHER A MORE SPECULATIVE REALESTATE COMPANY THE PREFERRED HOLDERS CLAIM IN THE LAWSUIT THAT MARRIOTT MADE DEALS WITH OTHER MARRIOTT STAKEHOLDERS TO THE DETRIMENT OF HOLDERS OF CONVERTIBLE PREFERRED STOCK THE GROUP ALSO CHARGED THAT THEY WILL HAVE THE CONVERSION PRICE OF THEIR SHARES CUT UNDER THE PLAN AND THAT THEY WILL BE WRONGFULLY COERCED TO CONVERT THEIR PREFERRED STOCK INTO COMMON STOCK A MARRIOTT SPOKESMAN AGAIN SAID THE GROUP'S CLAIM HAS NO MERIT AND ADDED THAT HE'S CONFIDENT SHAREHOLDERS WILL APPROVE THE PLAN 9304060051 930406 FOREIGN EXCHANGE DOLLAR EDGES MOSTLY LOWER IN ABSENCE OF NEWS AS TRADERS MOVE TO SIDELINES BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK STARVED FOR NEWS TRADERS STEPPED BACK AND THE DOLLAR MEANDERED MOSTLY LOWER YESTERDAY RUMORED INTERVENTION BY THE BANK OF JAPAN TO SLOW THE YEN'S GAINS PULLED THE JAPANESE CURRENCY FROM HISTORIC HIGHS BUT DEALERS SAID THE EFFECT APPEARED MODEST LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15948 MARKS DOWN FROM 15975 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11370 YEN DOWN FROM 11375 YEN STERLING WAS TRADING AT 15210 OFF FROM 15220 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16005 MARKS AND AT 11393 YEN ALL IN ALL IT'S BEEN EXTREMELY QUIET SAID JAMES MCGROARTY SENIOR VICE PRESIDENT IN FOREIGN EXCHANGE AT GREENWICH CAPITAL MARKETS MANY EUROPEAN MARKETS WILL BE CLOSED FRIDAY AND MONDAY FOR THE EASTER HOLIDAY AND DEALERS SAID THE HOLIDAY MOOD ALREADY HAS SAPPED MARKET ACTIVITY DISAPPOINTED THAT A DOLLAR RALLY FRIDAY DIDN'T LAST DEALERS SAID INVESTORS HOLD OUT LITTLE HOPE THAT THE DOLLAR WILL HEAD HIGHER SOON THE MAJORITY OF THE MARKET IS STILL QUITE NEGATIVE AND IS ASSUMING WE'RE GOING TO TEST BACK DOWN TOWARD THE LOWS SAID MR MCGROARTY BEFORE ITS BOUNCE FRIDAY THE DOLLAR FELL TO 15855 MARKS ITS LOWEST LEVEL IN MORE THAN TWO MONTHS ALTHOUGH SELLERS FAILED TO PUSH THE DOLLAR NEAR THAT LEVEL YESTERDAY THE DOLLAR'S SUPPORT WAS MORE A LACK OF INTEREST THAN STRONG BIDS SAID JOHN LYMAN A SENIOR CUSTOMER DEALER AT BANK OF TOKYO THERE REALLY IS NO BOUNCE TO SPEAK OF HE SAID THAT'S REINFORCING THE BEARISH SENTIMENT THE DOLLAR'S MOST NOTABLE JUMP CAME IN ASIAN TRADING YESTERDAY DEALERS SAID AFTER RUMORS THE BANK OF JAPAN INTERVENED TO SUPPORT THE DOLLAR SENT SPECULATORS SCRAMBLING TO COVER BETS AGAINST THE US CURRENCY BEFORE THE RUMORS WHICH DEALERS SAID SEEMED MORE CREDIBLE THAN HINTS OF INTERVENTION LAST WEEK THE DOLLAR HAD FALLEN TO YET ANOTHER POSTWORLD WAR II LOW AGAINST THE YEN THE DOLLAR DIPPED TO 11334 YEN BELOW THE PREVIOUS LOW OF 11350 YEN SET FRIDAY THE DOLLAR HAS SET A NEW LOW EVERY TRADING DAY SINCE MAR 31 YESTERDAY THE DOLLAR BOUNCED ABOUT HALF A YEN HIGHER AS RUMORS OF THE INTERVENTION SWEPT THE MARKET DEALERS SAID BUT PLAYERS SAID THE BANK OF JAPAN'S BUYING APPEARED TO BE LIMITED AND THE DOLLAR SLIPPED LOWER AS GLOBAL TRADING WORE ON BRIAN DOLAN A TRADER AT DAIICHI KANGYO BANK LTD SAID THAT ALTHOUGH ECONOMIC FACTORS SEEM TO SUGGEST THE YEN'S RECENT RALLY HAS RUN ITS COURSE THE MARKET HASN'T GIVEN UP YET EVERYBODY'S STILL TRYING TO GET IN HE SAID DEALERS SAID THE BANK OF JAPAN'S RUMORED DOLLAR BUYING APPEARED TO HAVE DONE LITTLE MORE THAN GIVE PLAYERS A CHANCE TO SELL MORE DOLLARS BUT DEALERS NOTED THAT DESPITE THE DOLLAR'S WEAKNESS YESTERDAY THERE ARE SIGNS THAT ITS DOWNWARD TRAJECTORY COULD FLATTEN OUT IN THE COMING DAYS MR LYMAN OF BANK OF TOKYO NOTED THAT SOME INSTITUTIONAL INVESTORS SEEMED TO STEP IN NEAR THE DOLLAR'S LOWS THAT MAY HAVE BEEN THE START OF SOME BOTTOMPICKING HE SAID MANY OBSERVERS HAD SET 11300 YEN AS THE TARGET FOR THE DOLLAR'S DROP HE SAID NOW THAT THE DOLLAR HAS ALL BUT REACHED THAT LEVEL THE SELLING COULD ABATE HE SAID 9304060050 930406 BUILDING A MARKET AMID RUSSIAN TURMOIL COCACOLA IS PLACING A BET ON THE FUTURE IT SLATES PLANTS IN MOSCOW AND ST PETERSBURG DOES ITS BUSINESS WITH RUBLES LOCAL SUPPLIERS EAGER TO DEAL BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW POLITICAL TURMOIL IS TESTING RUSSIA'S COMMITMENT TO ECONOMIC REFORM AS NEVER BEFORE BUT VALERY KAZLOV'S STREET KIOSK HERE SHOWS HOW A FEW WESTERN COMPANIES ARE PLACING LONGTERM BETS ON RUSSIA'S FUTURE THE KIOSK IS 12 FEET HIGH AND SHAPED LIKE A GIANT COKE CAN PASSERSBY ON TVERSKAYA STREET NEAR THE KREMLIN ARE DRAWN TO IT LIKE A MAGNET RUSSIANS VERY MUCH LIKE COKE MR KAZLOV SAYS IT'S FAMOUS NOT MANY CAN AFFORD IT YET BECAUSE AT 177 RUBLES A CAN 27 CENTS A COKE COSTS HALF A DAY'S PAY FOR MOST BUT MR KAZLOV A LAIDOFF FORMER GOVERNMENT COOK KEEPS BUSY MAKING CHANGE CHATTING AMIABLY AND BUILDING GOODWILL HE IS IN THIS FOR THE LONG HAUL HE SAYS SO IS COCACOLA CO WHICH OWNS THE KIOSK AND RENTS IT TO THE WHOLESALER THAT EMPLOYS MR KAZLOV COKE'S GOAL TO INVEST IN AND BUILD A RUBLEBASED FRANCHISE IN THE FORMER SOVIET MARKET FROM THE GROUND UP AS PRESIDENT CLINTON SEEKS TO SPUR INVESTMENT IN RUSSIA TO BOLSTER FREEMARKET TRENDS COCACOLA'S EXPERIENCE SHOWS WHAT A US COMPANY FACES IN TAKING THE PLUNGE ALREADY COKE HAS A 15 MILLION PRODUCTION PLANT AND TRAINING FACILITY UNDER CONSTRUCTION IN A MOSCOW SUBURB COKE IS UPGRADING LOCAL BOTTLERS IN RUSSIA AND THROUGHOUT THE EXSOVIET BALTIC STATES A FORMER SOVIET ROCKET FACTORY IS MAKING MORE COKECAN KIOSKS WHILE A MIG FIGHTERPLANE PLANT BUILDS NEONLIT SHELVES TO SELL COKE IN RUSSIAN SUPERMARKETS AND LAST MONTH COKE ANNOUNCED PLANS TO BUILD A 50 MILLION SOFTDRINK PRODUCTION PLANT IN ST PETERSBURG MOST WESTERN INVESTMENT IN RUSSIA HAS BEEN PAINFULLY SLOW TO COME ALTHOUGH HUNDREDS OF COMPANIES ARE SELLING GOODS HERE AND HAVE COME TO LOOK AT THE PROSPECTS THE MAJORITY ARE HESITATING TO PUT MONEY IN THE GROUND AND PRODUCE LAST YEAR WESTERN FIRMS INVESTED ONLY 2 BILLION IN RUSSIA COMPANIES ARE PUT OFF BY INFLATION EVERCHANGING TAX LAWS UNDEPENDABLE RUSSIAN PARTNERS AND POLITICAL TURMOIL WHICH HAS WORSENED AS FOES OF PRESIDENT BORIS YELTSIN SOME OF THEM OPPOSED TO ECONOMIC REFORM TRY TO CURB HIS POWERS BUT SOME PROMINENT WESTERN COMPANIES SUCH AS COKE BELIEVE THE ODDS FAVOR INVESTING IN RUSSIA NOW AS FAR AS WE CAN SEE NOTHING HAS CHANGED HERE DESPITE THE ATTACKS ON MR YELTSIN SAYS CRAIG COHON THE 29YEAROLD HEAD OF COKE'S MOSCOW OFFICE WE'RE SURE THEY'LL WORK ALL THE POLITICAL PROBLEMS OUT ADDS TORE BU THE POINT MAN FOR COKE'S ENTRY INTO THE RUBLE ECONOMY WE BELIEVE THE FIRST TRAIN IS LEAVING NOW THE PASSENGERS ON THE FIRST TRAIN WILL LEAVE THE STATION FIRST THE LIST OF THOSE GETTING INVOLVED IS AN IMPRESSIVE ONE MCDONALD'S CORP WAS A PIONEER AND NOW SERVES AS SOMETHING OF A ROLE MODEL FOR COKE OTHER FIRMS WITH ACTIVE AND GROWING RUSSIAN PRESENCES INCLUDE NATURALRESOURCE FIRMS LIKE CHEVRON CORP DU PONT CO'S CONOCO INC NEWMONT MINING CORP AND BRUSH CREEK MINING & DEVELOPMENT CO COMPUTER AND ELECTRONICS FIRMS LIKE MICROSOFT CORP SUN MICROSYSTEMS INC AND GREECE'S INTRACOM AND TOBACCO COMPANIES LIKE PHILIP MORRIS COS WHICH IS SPENDING MORE THAN 100 MILLION AND RJR NABISCO HOLDINGS CORP'S RJ REYNOLDS TOBACCO WHICH PUTS ITS INVESTMENT AT MORE THAN 10 MILLION UPJOHN CO IS MAKING VITAMINS HERE UNITED TECHNOLOGIES CORP'S OTIS ELEVATOR DIVISION IS RENOVATING THREE FACTORIES FOR ITS USE LOCKHEED CORP AND MOTOROLA INC RECENTLY DECIDED TO MAKE COMMERCIAL SATELLITES WITH A RUSSIAN DEFENSE FIRM BOEING CO WILL MAKE JETLINER PARTS IN RUSSIA THESE COMPANIES ARE MINIMIZING CURRENCY RISK BY PUTTING THEIR OPERATIONS AS MUCH AS POSSIBLE INTO THE RUBLE ECONOMY THEY ARE DEVELOPING LONGTERM TIES WITH GOVERNMENT OFFICIALS AND OTHERS WHO SEEM WILLING TO HELP OUT SERIOUS INVESTORS AND THEY HOPE TO CONVERT THE OLD SOVIET SYSTEM INTO A NEW MARKET STRUCTURE THAT WILL ULTIMATELY SERVE THEIR NEEDS THE PEOPLE HERE NOW ARE THE ONES WITH THE MOST VISION SAYS BORIS JORDAN HEAD OF CREDIT SUISSE FIRST BOSTON'S MOSCOW OFFICE THEY'RE NOT INTERESTED IN SHORTTERM PROFITS THEY WANT MARKET SHARE UNDER THE OLD SYSTEM THERE WASN'T MUCH CHANCE TO DEVELOP THAT COKE'S ARCHRIVAL PEPSICO INC'S PEPSICOLA IS BETTER ESTABLISHED HERE AND CONTROLS ABOUT TWICE AS MUCH OF THE SOFTDRINK MARKET THANKS TO A BARTER DEAL NEGOTIATED DURING THE NIXON ADMINISTRATION INVOLVING STOLICHNAYA VODKA BUT THE NUMBERS ARE SO SMALL 4 FOR PEPSI 2 FOR COKE AND THE POTENTIAL MARKET SO VAST THAT COKE OFFICIALS SAY IT IS SILLY TO TALK ABOUT COLA WARS HERE WHEN COKE FINALLY ENTERED THE SOVIET MARKET IN 1979 IT TOO WAS UNDER A BARTER ARRANGEMENT WITH THE GOVERNMENT COKE FOR LADA CARS COKE WAS BOTTLED IN THE SAME STATEOWNED PLANT AS PEPSI ITS SALES FORCE CONSISTED OF GRUMPY EMPLOYEES IN STATE STORES WHO CARED LITTLE ABOUT SALES OR PROFITS DISTRIBUTION WAS A PROBLEM BECAUSE PRODUCTION WAS BASED ON A FIVEYEAR PLAN CASES OF COKES OFTEN SAT OUTSIDE AND FROZE BECAUSE OF POOR COMMUNICATIONS AT THE HEART OF COKE'S EFFORT TO MAKE ITS INVESTMENT WORK IS MR BU PRESIDENT OF THE COMPANY'S NORDIC AND EURASIAN DIVISION A TALL NORWEGIAN WITH A WARM SMILE HE PAYS SCORES OF COURTESY CALLS ON HIS MONTHLY VISITS TO MOSCOW HOLDING PARTIES AND ALWAYS TRYING TO EXPAND HIS CIRCLE OF ACQUAINTANCES HE HAS ASKED TO STAY WITH THIS ASSIGNMENT UNTIL RETIREMENT IN EIGHT YEARS I WANT TO SEE THIS TURN INTO A FLOURISHING BUSINESS HE SAYS YOU HAVE TO BELIEVE IN RUSSIA AND I DO IN A SYSTEM STILL LACKING MANY OF THE RUDIMENTARY INSTITUTIONS OF A FREE MARKET COKE HAS FOUND THAT PERSONAL CONTACT COUNTS AFTER TRYING FOR MONTHS TO ARRANGE A MEETING WITH MOSCOW'S MAYOR TWO YEARS AGO TO DISCUSS GETTING LAND FOR A PLANT MR COHON HEARD THAT THE THENMAYOR GAVRIL POPOV WAS PLANNING A TRIP TO NEW YORK MR COHON GOT ON THE SAME FLIGHT FOUND THE MAYOR AND GAVE HIM A SIXPACK OF COKE WE'D LIKE TO MAKE THIS IN MOSCOW MR COHON SAID WILL YOU HELP US MR POPOV AGREED TO A MEETING AND COKE ULTIMATELY LANDED A 49YEAR LEASE ON THE PLOT WHERE IT IS NOW BUILDING ITS PLANT THE PRICE TAG WAS AN INITIAL FEE IN RUBLES EQUIVALENT TO 800000 PLUS AN ANNUAL RENTAL PAYMENT THE COMPANY DECLINES TO DISCLOSE FURTHER SMOOTHING THE WAY WAS COKE'S PURCHASE OF 650000 OF DIAGNOSTIC MEDICAL EQUIPMENT FOR A CHILDREN'S CLINIC IN THE DISTRICT AND A 150000 DONATION TO SUPPORT FOUR FOURYEAR SCHOLARSHIPS AT A BUSINESS UNIVERSITY AFTER GETTING THE LAND COCACOLA SET ABOUT ACHIEVING THE SECOND PART OF ITS STRATEGY BUILDING AS MUCH OF THE OPERATION AS POSSIBLE FOR RUBLES MOST WESTERN BUSINESSES AND EVEN SOME RUSSIAN ONES STILL RELY ON IMPORTED GOODS AND SERVICES BUT MR BU REASONS THAT COCACOLA WILL BE ABLE TO DO THE JOB LESS EXPENSIVELY IF IT PAYS ONLY RUBLES THE WINNING BIDDER WAS THE RUSSIAN CONSTRUCTION FIRM PERGAMOS WHICH USED TO WORK FOR THE COUNCIL OF MINISTERS STEPHAN DABAGIAN THE PRESIDENT BID AT HALF THE PRICE OF SIX WESTERN COMPANIES HE ALSO AGREED TO DO THE JOB ONLY FOR RUBLES AN UNUSUAL ARRANGEMENT BECAUSE FOREIGNERS ARE GENERALLY EXPECTED TO PAY DOLLARS A SHORT MAN WITH GRAYING HAIR AND SAD EYES MR DABAGIAN TAKES HIS COMMITMENT TO COCACOLA SERIOUSLY HE HAS DROPPED ALL OTHER CONSTRUCTION JOBS AND HAS 1 1/2 SHIFTS A DAY WORKING TO COMPLETE THE PROJECT BY COKE'S EARLYFALL DEADLINE AT A MONTHLY BREAKFAST MEETING WITH MR BU AT THE PALATIAL AUSTRIANBUILT BALTSCHUG KEMPINKSI HOTEL MR DABAGIAN REPORTS ON HIS PROGRESS MATERIALS ARE HARD TO FIND HE SAYS THE SAND SUPPLIER HAS JUST RAISED HIS PRICES AGAIN AND WON'T DELIVER UNLESS PERGAMOS MEETS THE INCREASE I HOPE COCACOLA UNDERSTANDS ABOUT INFLATION HERE HE SAYS MR BU ASSURES HIM THAT THE PRICE INCREASES AREN'T A PROBLEM MR DABAGIAN LOOKS RELIEVED WITH THE RUBLE FALLING AGAINST THE DOLLAR NOW ALMOST AS QUICKLY AS INFLATION IS RISING MR BU ISN'T BOTHERED IF THE PLANT COMES IN A LITTLE HIGHER THAN PLANNED THERE IS MORE THAN COST EFFICIENCY IN COKE'S COMMITMENT TO THE RUBLE ECONOMY MR BU ALSO HOPES TO CREATE A MULTIPLIER EFFECT HE PAYS PERGAMOS IN RUBLES PERGAMOS PAYS SUBCONTRACTORS IN RUBLES THE SUBCONTRACTORS PAY WORKERS IN RUBLES THE IDEA IS THAT SUCH TRANSACTIONS WILL HELP THE ECONOMY FIRM UP AND ULTIMATELY PUT MORE MONEY INTO THE POCKETS OF CITIZENS MORE MONEY THEY CAN USE TO BUY COKES COKE'S RUBLE POLICY ALSO KEEPS BOTH EXPENSES AND REVENUE IN THE SAME CURRENCY RUBLES AND DOLLARS ARE READILY CONVERTIBLE INSIDE RUSSIA REPATRIATION OF PROFITS ISN'T AN ISSUE COKE WILL FACE FOR SEVERAL YEARS PERHAPS AS LONG AS SIX BUT RUSSIA DOES PERMIT REPATRIATION OF PROFITS AND IT ALSO PERMITS FOREIGN COMPANIES TO OWN 100 OF ENTERPRISES COKE WILL OWN ALL OF ITS ST PETERSBURG PLANT AND MOST OF THE ONE IN MOSCOW SHIPPING IN THE SYRUP BUT GETTING OTHER SUPPLIES LOCALLY MR BU IS CHEERED BY THE NEWS THAT MR DABAGIAN AFTER MUCH SEARCHING HAS FOUND A FIRSTRATE KREMLIN FURNITURE MAKER TO BUILD OFFICE FURNISHINGS FOR RUBLES THERE WILL BE SOME DEMONSTRATION MODELS FOR MR BU TO SEE ON HIS NEXT VISIT LATER MR BU DROPS BY TO SPEND AN HOUR WITH STEPAN KYURKCHU PRESIDENT OF RUSSIAN WINES A SMALL FIRM NINE MONTHS AGO BASED ON A HANDSHAKE RUSSIAN WINES STARTED BOTTLING COKE EVEN THOUGH THE LAWYERS STILL HAVEN'T FINISHED THE AGREEMENT COCACOLA HAS ALREADY BOUGHT MR KYURKCHU 50000 WORTH OF EQUIPMENT AND IS SUPPLYING HIM WITH COKE CONCENTRATE MR KYURKCHU A SHORT MAN WITH GRAY HAIR AND DARK BROWN EYES COMES FLYING DOWN THE CORRIDOR TO GREET MR BU HE HAS JUST STARTED TO TAKE ENGLISH LESSONS HE PUMPS MR BU'S HAND AND SAYS STUMBLING SOMEWHAT I AM SO GLAD TO SEE YOU AFTER A QUICK TOUR OF THE PLANT THE TWO RETIRE TO A FEAST OF CHICKEN FISH VEGETABLES BREAD AND COGNAC AS MANY TOASTS AS TIME PERMITS ARE EXCHANGED THE MEN RECALL FONDLY THE VISIT THAT MR KYURKCHU RECENTLY PAID TO MR BU'S HOME IN OSLO THEN MR BU IS OFF TO HIS NEXT STOP WHEN HE HAS TIME MR BU SOMETIMES TAKES A SAUNA WITH ALEXEI BRYACHIKHIN A MOSCOW CITY PREFECT WHO PRESIDES OVER THE DISTRICT WHERE COKE IS BUILDING ITS FACTORY MR BRYACHIKHIN HELPED GET THE 37 SIGNATURES NEEDED TO LEASE LAND FROM THE CITY AND THE TWO MEN HAVE BECOME GOOD FRIENDS TODAY THERE ISN'T ENOUGH TIME FOR A SAUNA BUT MR BRYACHIKHIN WELCOMES MR BU WITH CHAMPAGNE AND CHOCOLATES THE TWO EXCHANGE A BEAR HUG AND PLEASANTRIES IN ENGLISH AND RUSSIAN THIS IS A SERIOUS INVESTOR WHO IS REALLY IMPORTANT BECAUSE HE WILL ENCOURAGE OTHERS TO COME MR BRYACHIKHIN SAYS THROUGH A TRANSLATOR HE TELLS MR BU THAT A WESTERN CANDYBAR MAKER AND A WESTERN BREWER HAVE COME TO SEE HIM ABOUT OPENING FACTORIES IN HIS DISTRICT THIS MEANS JOBS FOR US HE SAYS AS FOR COKE WORD HAS SPREAD QUICKLY THAT IT IS READY TO DO BUSINESS THE MOSCOW OFFICE RECEIVES 500 PHONE CALLS A DAY FROM BUSINESSES LOOKING TO MAKE DEALS A LOCAL TRUCK MANUFACTURER WILL PRODUCE DELIVERY TRUCKS TO REPLACE THE VOLVOS THE COMPANY HAS BEEN IMPORTING AT A COST OF 90000 EACH THE CANSHAPED KIOSKS LIKE MR KAZLOV'S WERE ORIGINALLY MADE IN GERMANY NOW THE NAUKA SCIENTIFIC AND PRODUCTION ASSOCIATION A MILITARY FACTORY THAT MAKES THE RUSSIAN SPACE SHUTTLE IS MAKING THEM MORE CHEAPLY AND WITH HIGHERQUALITY ALUMINUM WHEN THE COMPANY PUT OUT THE WORD THAT IT NEEDED TO FILL 84 OFFICE AND SALES POSITIONS 18000 RUSSIANS SENT RESUMES MANY ALREADY SPOKE ENGLISH AND HAD DEGREES THAT WOULD OVERQUALIFY THEM FOR THE JOB IN THE WEST ONE ATTRACTION THOUGH COKE PAYS RUBLE SALARIES IT REWARDS GOOD PERFORMERS WITH DOLLAR BONUSES MR BU'S PLAN FOR SELLING COCACOLA IS TO TARGET SPECIFIC OUTLETS AT FIRST WITH AN EYE TOWARD SLOWLY EXPANDING DISTRIBUTION UNTIL THE ENTIRE COUNTRY IS COVERED AT A RECENT POLITICAL CONVENTION OF SEVERAL HUNDRED RUSSIAN INDUSTRIALISTS FOR EXAMPLE COCACOLA WAS GIVING AWAY COKE SPRITE AND FANTA ALONG WITH PRICE LISTS FOR SELLING THE SOFT DRINKS IN THE DIRECTORS' FACTORIES BUT MR BU SAYS A BIG AD CAMPAIGN WOULD ONLY CREATE DEMAND THAT COKE CAN'T YET MEET FOR RIGHT NOW MR BU IS PRIMARILY RELYING ON RUSSIA'S BURGEONING STREET VENDORS AND PRIVATE SUPERMARKETS THE CAN KIOSKS COKE PLANS SEVERAL HUNDRED ALREADY HAVE HELPED CONVINCE CONSUMERS THE COMPANY IS SERIOUS ON TVERSKAYA STREET SEVENYEAROLD LISA OSTOVSKY APPROACHES MR KAZLOV'S KIOSK WITH A GLEAM IN HER EYE SHE BEGS HER PARENTS NADIA AND ALEXEI TO BUY HER A COKE IT'S TOO EXPENSIVE HER MOTHER RESPONDS BUT MR OSTOVSKY WHO SAYS HE WAS ONCE DUPED BY A CONNIVING ENTREPRENEUR SELLING FAKE COKE THINKS THIS PURCHASE MIGHT BE WORTH THE HIGH PRICE POINTING TO THE GIANT CAN HE TELLS HIS WIFE BUT LOOK IT'S THE REAL THING 9304060049 930406 TWO ENERGY FIRMS SELL STAKES HOUSTON APACHE CORP AND NATURAL GAS CLEARINGHOUSE HAVE SOLD THEIR HALFINTERESTS IN THE CLEARINGHOUSE'S GAS GATHERING SYSTEM TO TRANSOK INC A UNIT OF CENTRAL & SOUTH WEST CORP TERMS WEREN'T DISCLOSED THE TRANSACTION WAS EFFECTIVE THURSDAY APACHE AN ENERGY COMPANY WILL TRANSPORT ITS GAS THROUGH THE SYSTEM UNDER AN AGREEMENT WITH TRANSOK AN INTRASTATE NATURAL GAS CONCERN NATURAL GAS CLEARINGHOUSE IS THE NATION'S LARGEST INDEPENDENT NATURAL GAS MARKETER 9304060048 930406 INTERNATIONAL SOUTH KOREA'S KIM FOCUSES ON ECONOMY LOOKS TO US LEADERSHIP ON NORTH KOREA BY KAREN ELLIOTT HOUSE AND URBAN C LEHNER STAFF REPORTERS OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA AFTER A MONTH IN OFFICE SOUTH KOREA'S PRESIDENT KIM YOUNG SAM INSISTS HE IS MAKING PROGRESS IN RESTORING HIS PEOPLE'S CONFIDENCE AND HIS NATION'S ECONOMIC COMPETITIVENESS INDEED HE IS SO FOCUSED ON REVITALIZING SOUTH KOREA'S ECONOMY WHICH GREW LAST YEAR AT A 47 PACE THE LOWEST IN A DECADE THAT STRONG EVIDENCE NORTH KOREA IS BUILDING A NUCLEAR BOMB SEEMS TO TAKE SECOND PLACE ON HIS AGENDA I'M REALLY WORRIED ABOUT NORTH KOREA HE SAID BUT IMPLIED THAT HE WAS CONFIDENT DIPLOMATIC EFFORTS BY THE US JAPAN AND CHINA CAN PERSUADE NORTH KOREA TO REVERSE ITS DECISION TO WITHDRAW FROM THE NUCLEAR NONPROLIFERATION TREATY WHETHER DISCUSSING DOMESTIC OR FOREIGN POLICY DURING AN INTERVIEW MR KIM SOUGHT TO UNDERSCORE THE THEME OF CHANGE HE IS ONLY SOUTH KOREA'S SECOND DEMOCRATICALLY ELECTED PRESIDENT AND ITS FIRST CIVILIAN PRESIDENT SOUNDING MUCH LIKE PRESIDENT CLINTON MR KIM IS CALLING FOR SACRIFICE BY KOREANS AT ALL LEVELS TO REVITALIZE THE ECONOMY AND RESTORE SOCIAL DISCIPLINE BY DISCLOSING HIS OWN WEALTH AND INSISTING THAT HIS CABINET DO LIKEWISE MR KIM HOPES TO CONVINCE KOREANS THAT GOVERNMENT LEADERS AREN'T BENEFITING WHILE ASKING THE PEOPLE TO SACRIFICE THE PRESIDENT'S IMMEDIATE AIM IS TO CONVINCE KOREA'S INCREASINGLY ASSERTIVE WORKERS TO ACCEPT A WAGE FREEZE THE MOST IMPORTANT THING IS THAT THE LEADERSHIP AND THE GOVERNMENT SHOULD SET AN EXAMPLE MR KIM SAID I HAVE CALLED FOR BURDEN SHARING FOR THE NATION WE MUST REVITALIZE OUR ECONOMY IN HIS CAMPAIGN HE PROMISED TO CURE THE KOREAN DISEASE A COMBINATION OF EXCESSIVE WAGE DEMANDS A WANING WORK ETHIC AND INSUFFICIENT SAVINGS AND INVESTMENT WHICH HE SAID IS PRICING KOREAN EXPORTS OUT OF WORLD MARKETS ALREADY MR KIM SEES SIGNS INCLUDING HIS OWN 70PLUS SUPPORT RATING IN PUBLICOPINION POLLS THAT HE IS CHANGING KOREAN ATTITUDES TOWARD WORK AND ITS REWARDS THE KOREAN PEOPLE HAVE BEGUN TO HAVE A MENTALITY WHICH CAN BE CHARACTERIZED AS FULL OF CONFIDENCE HE SAID THEY HAVE BEGUN TO BELIEVE THAT THOSE WHO SOW THE SEEDS WILL REAP THE HARVEST MR KIM WHO HAS SAID HE DREAMED OF BEING PRESIDENT IN JUNIOR HIGH SCHOOL CLEARLY RELISHES THE JOB AFTER 36 YEARS AS A DISSIDENT POLITICIAN SEVERAL TIMES STRIPPED OF HIS POLITICAL RIGHTS AND IMPRISONED THE 65YEAROLD PRESIDENT IS TRIM AND FIT HE RISES DAILY AT 515 AM TO JOG TWO AND A HALF MILES MR KIM SAID HE WANTS TO JOG WITH MR CLINTON WHOM HE HOPES WILL VISIT KOREA IN JULY WHEN THE US PRESIDENT ATTENDS THE G7 ECONOMIC SUMMIT IN TOKYO BUT MR KIM'S AGENDA FOR A CLINTON VISIT INCLUDES MUCH MORE THAN A JOG MR CLINTON'S PRESENCE IN KOREA WHERE 35000 US TROOPS ARE STATIONED WOULD BE A VERY CLEAR GESTURE OF UNITY AGAINST NORTH KOREA'S NUCLEAR AMBITIONS MR KIM SAID MR KIM EXPRESSED CONFIDENCE THAT KOREANAMERICAN TRADE RELATIONS STRAINED IN RECENT YEARS WILL IMPROVE UNDER MR CLINTON BECAUSE OUR TWO COUNTRIES ARE CLOSE AND DEVELOPED MUTUAL UNDERSTANDING FOR MANY YEARS KOREA IS ONE OF THE COUNTRIES THAT CAN BEST UNDERSTAND THE US AND COOPERATE WITH THE US GOVERNMENT HE SAID INDEED HE CALLED KOREA AMERICA'S CLOSEST ALLY IN THIS REGION IN A SHARP BREAK WITH PAST POLICY MR KIM ALSO PLEDGED TO IMPROVE HIS NATION'S RELATIONS WITH JAPAN A NATION MOST KOREANS RECALL BITTERLY AS A RUTHLESS OCCUPIER I HAVE PLEDGED OUR RELATIONS WITH THE US AND JAPAN ARE THE MOST IMPORTANT PILLARS OF KOREAN DIPLOMACY HE SAID 9304060047 930406 BUSINESS BRIEF PIER 1 IMPORTS INC SUNBELT NURSERY STAKE IS SOLD TO GENERAL HOST FOR STOCK PIER 1 IMPORTS INC PRUNED ITSELF OF ITS REMAINING 495 STAKE IN SUNBELT NURSERY GROUP SELLING THE 102STORE LAWN AND GARDEN CHAIN TO GENERAL HOST CORP FOR STOCK TOTALING 178 MILLION THAT VALUE FOR THE DEAL'S 194 MILLION GENERAL HOST SHARES IS BASED ON THE STOCK'S QUOTE AT 9125 UNCHANGED IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PIER 1 WILL BE ONE OF THE LARGEST HOLDERS OF GENERAL HOST WITH ABOUT 97 OF THE SHARES OUTSTANDING GENERAL HOST THE STAMFORD CONN OWNER OF 288 FRANK'S NURSERY AND CRAFTS STORES SAID SUNBELT WILL REMAIN PUBLICLY TRADED ON THE AMERICAN STOCK EXCHANGE AND WOULD CONTINUE TO OPERATE UNDER ITS OWN REGIONAL NAMES WOLFE NURSERY IN TEXAS TIP TOP NURSERY IN ARIZONA AND NURSERYLAND IN CALIFORNIA PIER 1 BASED IN FORT WORTH TEXAS SAID SELLING SUNBELT WHICH POSTED A LOSS OF 72 MILLION IN THE FISCAL YEAR ENDED JAN 31 FREES MANAGEMENT TO FOCUS COMPLETELY ON PIER 1'S SPECIALTIES FURNISHING BUSINESS AND SHEDS A UNIT NOT MEETING EXPECTATIONS PIER 1'S 42 MILLION SHARES OF SUNBELT COMMON WERE VALUED AT 226 MILLION BASED ON SUNBELT'S AMERICAN STOCK EXCHANGE CLOSE YESTERDAY AT 5375 UNCHANGED IN LATE BIG BOARD TRADING PIER 1 SHARES WERE QUOTED AT 1050 UP 375 CENTS 9304060046 930406 INTERNATIONAL RUSSIA TO SELL NEARLY 60 OF GAZPROM TO THE PUBLIC MOSCOW AP THE RUSSIAN GOVERNMENT WILL SELL MORE THAN HALF THE SHARES IN ITS NATURAL GAS MONOPOLY GAZPROM MOSTLY TO WORKERS IN THE GAS INDUSTRY AND RESIDENTS OF GASPRODUCING REGIONS THE ITARTASS NEWS AGENCY REPORTED THE GOVERNMENT WILL KEEP ABOUT 40 OF THE SHARES IN THE COMPANY ONE OF ITS MAJOR FOREIGN CURRENCY EARNERS THE NEWS AGENCY SAID THE TRANSFER OF MAJOR FACTORIES SUCH AS GAZPROM INTO PRIVATE HANDS IS ESSENTIAL FOR THE GOVERNMENT TO REDUCE THE BURDEN OF SUBSIDIZING ENTERPRISES AND TO CREATE A NEW CLASS OF ENTREPRENEURS AND SHAREHOLDERS ITARTASS SAID GAZPROM WILL BE CONVERTED INTO A JOINTSTOCK COMPANY VALUED AT ABOUT 130 MILLION EACH SHARE WILL BE VALUED AT ABOUT 144 IT SAID NEARLY 29 OF THE SHARES WILL BE OFFERED FOR SALE TO PEOPLE WHO LIVE IN GASPRODUCING REGIONS OF RUSSIA AN ADDITIONAL 52 WILL BE OFFERED TO RESIDENTS IN NORTHERN SIBERIA WHERE MOST OF GAZPROM'S FACILITIES ARE LOCATED IT SAID A FURTHER 15 WILL BE OFFERED TO WORKERS IN RUSSIA'S GAS INDUSTRY AND 10 WILL BE EARMARKED FOR THOSE WHO WORK DIRECTLY FOR GAZPROM WORKERS WILL BE ABLE TO PURCHASE SHARES IN GAZPROM USING PRIVATIZATION VOUCHERS ISSUED BY THE GOVERNMENT TO RUSSIAN CITIZENS LAST YEAR EACH VOUCHER HAS A FACE VALUE OF ABOUT 1445 MEANING INDIVIDUAL WORKERS COULD BUY AS MANY AS 10 GAZPROM SHARES 9304060045 930406 BUSINESS BRIEF ARMSTRONG WORLD INDUSTRIES INC CONCERN SAYS IT WON'T MEET PREVIOUS EARNINGS ESTIMATE ARMSTRONG WORLD INDUSTRIES INC LANCASTER PA SAID IT DOESN'T EXPECT TO MEET A PREVIOUS EARNINGS ESTIMATE FOR THE FIRST QUARTER BECAUSE OF WEAKERTHANEXPECTED MARKET DEMAND FOR CERTAIN PRODUCT LINES IT ALSO SAID RESULTS FROM CONTINUING OPERATIONS FOR THE FIRST QUARTER WILL BE LOWER THAN IN THE 1992 FIRST QUARTER THE COMPANY'S PREVIOUS ESTIMATE WAS FOR NET EARNINGS OF 32 TO 48 CENTS A SHARE FOR THE 1992 FIRST QUARTER IT HAD NET INCOME OF 182 MILLION OR 36 CENTS A SHARE THE MAKER OF FLOOR COVERINGS BUILDING PRODUCTS AND HOME FURNISHINGS SAID FIRSTQUARTER SALES SHOULD BE HIGHER THAN THE FOURTHQUARTER 1992 LEVEL OF 6001 MILLION IT ALSO SAID IT EXPECTS PROFIT FROM CONTINUING OPERATIONS TO BE WELL ABOVE THE FOURTH QUARTER'S 13 CENTS A SHARE EXCLUDING RESTRUCTURING CHARGES TAKEN IN THE QUARTER ARMSTRONG SAID ITS JANUARY ORDERS WERE ENCOURAGING IN MOST BUSINESSES BUT MARKET DEMAND AND SALES RESULTS HAVE NOT MET INITIAL EXPECTATIONS IN SEVERAL SECTORS FOR THE QUARTER THE COMPANY SAID ITS SHORTFALL WILL OCCUR LARGELY IN NONRESIDENTIAL MARKETS IN NORTH AMERICA AND EUROPE NOTABLY BECAUSE OF LOWER SALES IN THE BUILDING PRODUCTS AND INDUSTRIAL SPECIALTIES SEGMENTS 9304060044 930406 BUSINESS BRIEF ATTENTION MEDICAL CO TAYLOR MEDICAL MAKES OFFER TO MERGE FOR CASH STOCK ATTENTION MEDICAL CO SAID TAYLOR MEDICAL INC A CLOSELY HELD MEDICAL SUPPLY COMPANY BASED IN BEAUMONT TEXAS HAS OFFERED TO MERGE THE TWO COMPANIES IN EXCHANGE FOR AN UNSPECIFIED AMOUNT OF COMMON STOCK AND CASH ATTENTION A CARROLLTON TEXAS MEDICAL SUPPLY COMPANY WHICH ANNOUNCED LAST MONTH THAT IT WAS NEGOTIATING WITH TAYLOR SAID THE OFFER WOULD PROVIDE TAYLOR COMMON STOCK TO ATTENTION'S PRESIDENT DAVID STANLEY AND CERTAIN OTHER AFFILIATES WHO TOGETHER OWN AT LEAST 90 OF ATTENTION MEDICAL'S APPROXIMATELY 5 MILLION OUTSTANDING SHARES THE COMPANY WOULDN'T DISCLOSE THE VALUE OF THE STOCK TAYLOR IS OFFERING OTHER SHAREHOLDERS WOULD RECEIVE 150 A SHARE CASH UNDER THE PLAN THE COMPANY SAID ATTENTION SAID ITS BOARD HAS APPOINTED AN INDEPENDENT SPECIAL COMMITTEE TO REVIEW TAYLOR'S OFFER ON BEHALF OF ITS PUBLIC STOCKHOLDERS BUT THE MATTER WOULDN'T NEED TO GO TO A SHAREHOLDER VOTE IN OVERTHECOUNTER TRADING YESTERDAY ATTENTION CLOSED AT 4 BID MR STANLEY SAID RECENT SPECULATION HAS DRIVEN ATTENTION'S STOCK PRICE UP AND TAYLOR'S 150 A SHARE OFFER TO ITS OTHER SHAREHOLDERS HAS BEEN THE MORE TRADITIONAL TRADING RANGE FOR ATTENTION'S STOCK 9304060043 930406 BOTTLER WILL BUY OPERATIONS IN US EUROPE FROM COKE BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COCACOLA ENTERPRISES INC SAID IT AGREED TO ACQUIRE TWO BOTTLING OPERATIONS IN EUROPE AND IN TENNESSEE FROM COCACOLA CO FOR ABOUT 360 MILLION COCACOLA ENTERPRISES WHICH IS 44OWNED BY COCACOLA IS THE NATION'S LARGEST COKE BOTTLER THE PROPOSED PURCHASE ACCORDING TO COCACOLA ENTERPRISES REPRESENTS ITS FIRST INTERNATIONAL ACQUISITION EARLIER THIS YEAR COKE SAID IT HAD BEGUN TALKS WITH COCACOLA ENTERPRISES ABOUT DISTRIBUTING COKE PRODUCTS IN THE FASTGROWING AND LUCRATIVE OVERSEAS MARKET THE STRATEGY THOUGH COULD BE A RISKY ONE INDUSTRY ANALYSTS HAVE SAID IN ITS SIXYEAR EXISTENCE COCACOLA ENTERPRISES HASN'T BEEN ABLE TO GENERATE CONSISTENT PROFITS IN THE US BUT THE COMPANY AND COCACOLA ARE HOPING THAT COCACOLA ENTERPRISES WHICH HAS MOVED TO BECOME MORE EFFICIENT IN THE HIGHLY COMPETITIVE DOMESTIC MARKET CAN APPLY SOME OF ITS NEWFOUND SKILLS OVERSEAS WHERE BOTTLERS TYPICALLY USE OLDER EQUIPMENT AND SALES TECHNIQUES INDEED FOR COCACOLA ENTERPRISES THE HIGHER GROWTH RATES IN SOME INTERNATIONAL MARKETS COULD PROVIDE ENOUGH OF A SALES BOOST TO ENSURE PROFITABILITY THE NONBINDING LETTER OF INTENT SIGNED BY THE TWO COMPANIES CALLS FOR COCACOLA ENTERPRISES TO ACQUIRE COCACOLA BEVERAGES NEDERLAND BV A WHOLLY OWNED SUBSIDIARY OF COKE THE COMPANY WHICH BOTTLES COCACOLA PRODUCTS IN THE NETHERLANDS REPORTED REVENUE OF MORE THAN 320 MILLION FOR 1992 ACCORDING TO COCACOLA ENTERPRISES AND COKE THE AGREEMENT ALSO CALLS FOR THE PURCHASE OF RODDY COCACOLA BOTTLING CO AND COCACOLA BOTTLING CO OF JOHNSON CITY TENN THE TWO COMPANIES KNOWN AS RODDY/JOHNSON CITY COS SERVE APPROXIMATELY ONE MILLION CUSTOMERS IN THE EASTERN PORTION OF THE STATE AND REPORTED REVENUE OF ABOUT 86 MILLION IN 1992 THE PROPOSED TRANSACTION IS SUBJECT TO REGULATORY REVIEW AND BOARD APPROVALS AND IS EXPECTED TO BE COMPLETED BY THE END OF THE SECOND QUARTER SEPARATELY A JOINT VENTURE OF SOUTHEAST ASIAN SOFTDRINK BOTTLERS SAID IT WILL BUILD A 10 MILLION COCACOLA PLANT IN PHNOM PENH CAMBODIA THE OPERATION WILL MARK COKE'S RETURN TO THAT COUNTRY AFTER A 17YEAR ABSENCE THE PLANT IS SLATED TO PRODUCE MORE THAN 24 MILLION BOTTLES A YEAR OF COKE SPRITE AND FANTA THE PLANT IS OWNED BY CAMBODIA BEVERAGE CO A JOINT VENTURE BETWEEN COCACOLA'S COCACOLA INDOCHINA LTD FRANCHISE AND TWO THAI FIRMS VANACHAI INTERTRADING GROUP CO AND TOA CO IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY COCACOLA ENTERPRISES SHARES ROSE 375 CENTS TO 1525 WHILE COCACOLA SHARES DROPPED 1 TO 41 9304060042 930406 WHO'S NEWS AMERICAN IRON AND STEEL INSTITUTE AMERICAN IRON AND STEEL INSTITUTE ANDREW G SHARKEY 46 YEARS OLD WAS APPOINTED PRESIDENT OF THIS TRADE ASSOCIATION FOR THE US STEEL INDUSTRY EFFECTIVE AUG 1 MR SHARKEY WHO IS CURRENTLY PRESIDENT OF THE STEEL SERVICE CENTER INSTITUTE SUCCEEDS MILTON DEANER 68 WHO IS RETIRING 9304060040 930406 INTERNATIONAL APPAREL MAKER FOR TOP LABELS TO SELL BIG STAKE ITALY'S GFT MANUFACTURER FOR ARMANI WOULD GET INFUSION FROM MIROGLIO BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN IN ANOTHER SIGN THAT THE GLORY DAYS ARE OVER FOR EUROPEAN DESIGNER LABELS GRUPPO GFT THE PIONEER MANUFACTURER OF FASHIONS FOR GIORGIO ARMANI VALENTINO AND CALVIN KLEIN AGREED TO SELL A SIGNIFICANT STAKE TO ITALIAN TEXTILE GIANT GRUPPO MIROGLIO WHILE BOTH PARTNERS DECLINED TO DISCLOSE THE SIZE OF THE STAKE PEOPLE CLOSE TO THE NEGOTIATIONS SAID IT IS PROBABLE THE TURINBASED RIVETTI FAMILY THE SOLE OWNERS OF GFT WOULD SELL A MAJORITY SHARE OF GFT THROUGH A CAPITAL INCREASE LIKELY TO REACH ABOUT 100 MILLION GFT ONE OF THE FIRST COMPANIES TO SIGN LICENSING CONTRACTS WITH DESIGNERS IN THE 1970S AND MARKET LUXURY READYTOWEAR APPAREL FOR EXPORT WORLDWIDE HAD SALES ESTIMATED AT 154 TRILLION LIRE 9706 MILLION IN 1992 LED BY CHAIRMAN MARCO RIVETTI IT WAS THE MANUFACTURING POWERHOUSE BEHIND THE DESIGNERLABEL BOOM WHICH REACHED ITS APEX IN THE LATE 1980S OTHER DESIGNERS IN ITS STABLE INCLUDE EMANUEL UNGARO CLAUDE MONTANA JOSEPH ABBOUD AND CHRISTIAN DIOR BUT MORE RECENTLY GFT LIKE MANY OTHER HIGHFASHION COMPANIES HAS SUFFERED FROM THE FADING INTEREST IN DESIGNER LABELS AMID US AND EUROPEAN ECONOMIC WEAKNESS NOT TO MENTION A BURDENSOME DEBT LOAD AND HIGH ITALIAN MANUFACTURING COSTS SALES OF DESIGNER READYTOWEAR WERE DOWN 15 IN 1992 ALONE SAID VITTORIO LEVI CHIEF EXECUTIVE OFFICER OF GFT ADDING THAT THE DEBTTOEQUITY RATIO HAD INCREASED TO A PATHOLOGICAL LEVEL WITH DEBT TOTALING ABOUT 300 MILLION AT THE END OF 1992 THE GROUP HAD MADE A SERIES OF ACQUISITIONS AND INVESTED HEAVILY IN THE US MARKET WITH THE INTRODUCTION OF NEW LOWERPRICED LINES SUCH AS EMANUEL BY FRENCH DESIGNER EMANUEL UNGARO ONLY THIS YEAR WILL THE COMPANY SEE A PROFIT IN THE US FOLLOWING AT LEAST THREE YEARS OF LOSSES DESPITE A RESTRUCTURING PLAN WHICH MOVED 50 OF ITS MENSWEAR MANUFACTURING OUT OF ITALY AND SEVERAL ASSET SALES GFT REPORTED AN OVERALL LOSS OF 426 BILLION LIRE IN 1991 AND A LOSS OF 196 BILLION LIRE FOR 1992'S FIRST HALF FEELING THE SAME SORT OF PINCH FRENCH FASHION HOUSE YVES SAINT LAURENT SCA SOLD CONTROL TO FRENCH STATE PHARMACEUTICAL COMPANY ELF SANOFI SA SHOULD MIROGLIO ACQUIRE A MAJORITY OF THE GROUP THE NEW COMPANY WOULD BECOME ONE OF EUROPE'S LARGEST APPAREL AND TEXTILE GROUPS MIROGLIO WHICH MANUFACTURES LOW TO MODERATELY PRICED APPAREL AND TEXTILES HAD CONSOLIDATED SALES ESTIMATED AT 1074 TRILLION LIRE IN 1992 UP FROM 1048 TRILLION IN 1991 AND A PROFIT ESTIMATED AT A LITTLE MORE THAN 85 BILLION LIRE LAST YEAR UP FROM 78 BILLION LIRE IN 1991 SAID GIOVANNI COCCODRILLI MIROGLIO'S FINANCE DIRECTOR WHETHER THE FASHION DESIGNERS WHO LICENSE THEIR NAMES TO GFT WILL AGREE TO STAY ON IN THE NEW COMPANY REMAINS A KEY TO THE VIABILITY OF THE NEW GROUP EVEN IF THEY REMAIN THE LUXURY DESIGNER LABELS WILL NO LONGER BE THE ENGINE FUELING THE VOLUME GROWTH OF THE NEW GROUP THE MAJORITY OF SALES WOULD COME FROM MODERATELY PRICED CLOTHING AND FABRICS MIROGLIO IS A GREAT COMPANY AND THE TWO TOGETHER CAN BECOME A SUPERCOMPANY BUT THAT DOESN'T NECESSARILY MEAN I'LL BE A PART OF IT SAID GIANCARLO GIAMMETTI CHAIRMAN OF VALENTINO IN ROME IT WILL DEPEND ON THE WAY GFT PLANS TO DEVELOP VALENTINO IN THE FUTURE VALENTINO WHICH LICENSES ITS HIGHEND MEN'S AND WOMEN'S WEAR TO GFT ACCOUNTED FOR 230 BILLION LIRE IN GFT SALES IN 1992 MR GIAMMETTI SAID HE SAID VALENTINO IS INTERESTED IN ORGANIZATIONAL ISSUES AT GFT AS WELL AS THE POSSIBILITY OF MANUFACTURING OUTSIDE ITALY TO CUT COSTS GIORGIO ARMANI WHO LICENSES HIS LE COLLEZIONI LABEL A MIDPRICED RANGE OF CLOTHING IN THE US FOR MEN AND WOMEN AND HIS MANI LABEL IN EUROPE HAD NO COMMENT ON THE AGREEMENT THE SALE IS SCHEDULED TO BE COMPLETED BY JUNE 30 PENDING APPROVAL BY BOTH PARTIES AND THE MAIN FASHION DESIGNERS UNDER CONTRACT TO GFT 9304060039 930406 LEISURE & ARTS THE GALLERY WHEN IRON MOVED INTO THE SCULPTOR'S STUDIO BY DEBORAH SOLOMON NEW YORK PICASSO AND THE AGE OF IRON IS THE MISLEADING TITLE OF WHAT IS OTHERWISE A FLAWLESS EXHIBITION NOW AT THE SOLOMON R GUGGENHEIM MUSEUM PICASSO PLAYS ONLY A MINOR ROLE IN THE SHOW BUT PERHAPS THE BRAND NAME IS SUPPOSED TO BOOST INTEREST LIKE STICKING MADONNA ON A MAGAZINE COVER AND THE GUGGENHEIM NEEDS ALL THE PUBLIC AWARENESS AND 7 ENTRANCE FEES IT CAN GET AS WE ALL KNOW BY NOW THE MUSEUM IS IN NEED OF CASH IT REMAINS BETTERKNOWN FOR ITS RISKY BANK LOANS AND GLOBAL FRANCHISING PLANS THAN FOR ANY ONE SHOW LATELY HELD ON THE PREMISES THE STAFF CONTINUES TO MASTERMIND AN EXPANSION THAT WILL STATION MINIGUGGS ALL OVER EUROPE AND SPEARHEAD THE ERA OF THE MCMUSEUM GUARANTEED TO SERVE UP THE MOST MEDIOCRE FARE ALL OF THIS HELPS EXPLAIN WHY PICASSO AND THE AGE OF IRON UP UNTIL MAY 16 IS A WELCOME EVENT IT'S A DAZZLINGLY BEAUTIFUL SHOW AND IT REMINDS US HOW GREAT THE GUGGENHEIM CAN BE WHEN IT PUTS ASIDE ITS IMPERIALIST VISIONS IN FAVOR OF THE MORE SUBTLE QUEST OF CURATORIAL GOOD SENSE AND CONNOISSEURSHIP SO WHAT IS THE SHOW ABOUT IF NOT PICASSO ITS TRUE SUBJECT IS IRON AND HOW THIS METAL CAME TO BE MOVED FROM THE WORKADAY WORLD OF BRIDGES AND MUNITIONS INTO THE SCULPTOR'S STUDIO WHEREAS SCULPTURE HAD LONG BEEN SYNONYMOUS WITH CARVING AND MODELING EARLY IN THIS CENTURY THE CHISEL GAVE WAY TO THE BLOWTORCH AND WELDING BECAME THE TRADEMARK OF THE GROUP OF EXTRAVAGANTLY GIFTED MODERNIST SCULPTORS WHOSE WORK CAN NOW BE FOUND ON THE GUGGENHEIM'S SLOPING RAMPS JULIO GONZALES WHO WAS BORN IN BARCELONA IN 1876 IS THE OLDEST ARTIST IN THE SHOW AND DAVID SMITH WHO WAS BORN IN DECATUR IND IN 1906 IS THE YOUNGEST ALEXANDER CALDER AND ALBERTO GIACOMETTI FALL NEATLY IN BETWEEN SPANNING TWO GENERATIONS AND TWO CONTINENTS THE EXHIBITION MIGHT BE UNDERSTOOD AS A FAMILY AFFAIR WITH GIACOMETTI WHO STUCK MOSTLY TO BRONZE AS AN INTERLOPING DISTANT COUSIN THE STORY BEGINS IN 1928 WHEN PICASSO PAID A VISIT TO THE CLUTTERED STUDIO OF HIS FRIEND JULIO GONZALEZ AT 11 RUE DE MEDEAH IN PARIS HE HAD COME SPECIFICALLY TO LEARN THE TECHNIQUES OF IRON FORGING AND WELDING TO BE SURE PICASSO HAD BEEN WORKING WITH METAL SINCE 1912 WHEN HE CUT AND FOLDED A CHEAP SHEET OF TIN INTO HIS CURVACEOUS GUITAR PROBABLY THE FIRST CONSTRUCTED SCULPTURE EVER BUT HE WAS NOT A TRAINED METALWORKER AND IT WAS GONZALEZ WHO MADE HIM ONE BETWEEN 1928 AND 1931 PICASSO WORKED IN HIS FELLOW CATALAN'S STUDIO HE BENT SKEINS OF WIRE INTO LANKY FIGURES HE CUT WHOLE SLABS OF IRON AND ASSEMBLED THEM INTO CUBIST CONFIGURATIONS THAT SHOW HIS DELIGHT IN BEING ABLE TO PLAY LITERALLY WITH FIRE HE TOSSED OFF A GROUP OF MINOR MASTERPIECES AND THEN LEFT THE MEDIUM OF IRON ALTOGETHER AS IF IT WERE ANOTHER OF HIS MISTRESSES WHO COULD NOT HOLD HIS INTEREST FOR GONZALEZ HOWEVER THIS COLLABORATION WITH PICASSO MARKED THE DECISIVE MOMENT OF HIS CAREER HE WAS PAST 50 AT THE TIME AN AGING DISCONSOLATE IMPECUNIOUS ARTIST WHO HAD STRUGGLED FOR YEARS AS A PAINTER YET ONCE HE HAD BEEN LIBERATED BY PICASSO'S EXAMPLE GONZALEZ MANAGED IN JUST A DECADE UNTIL HIS DEATH IN 1942 TO CREATE A BODY OF BLUNT METAL SCULPTURES THAT BECAME VASTLY INFLUENTIAL THE GUGGENHEIM SHOW INCLUDES MOST OF HIS MAJOR WORKS SEMIABSTRACTIONS THAT RARELY LEAVE THE HUMAN FIGURE BEHIND WE SEE SCULPTURES OF WOMEN STANDING RECLINING COMBING THEIR HAIR HOLDING A DAISY DANCING OR JUST STARING OFF DREAMILY INTO SPACE WHAT MAKES THEM SO INNOVATIVE IS THAT THEIR CRUDE STRIPS AND SLABS OF IRON WITH THEIR BLACKENED HUES RAGGED EDGES EXPOSED WELDINGS AND GENERAL AIR OF MODERN INDUSTRY CONVEY THE MOST DELICATE FEELINGS IN MANE OF HAIR 1934 FOR INSTANCE SIX CURVY SPIKES WELDED TO A METAL LOOP REMIND US OF WHAT IT'S LIKE TO STAND OUTSIDE ON A WINDY DAY IT'S NOT HARD TO RECOGNIZE THE PARTICULAR LINEAGE CONNECTING PICASSO AND GONZALEZ TO THE AMERICAN SCULPTOR ALEXANDER CALDER WHO WAS LIVING IN PARIS IN THE 1930S A NOTSOINNOCENT ABROAD HIS FAMOUS MOBILES PICKED UP ON THE SPANIARDS' INNOVATIONS AND SENT THEM WHIRLING THROUGH SPACE THE GUGGENHEIM SHOW INCLUDES SOME OF CALDER'S LESSERKNOWN WORKS SUCH AS SPHERE PIERCED BY CYLINDERS 1939 IN WHICH A REDWIRE CIRCLE BALANCED ATOP A SPINDLY TRIPOD SUGGESTS BOTH A SHY AWKWARD CYCLOPS AND A RADIO TOWER IT HAS THE UNVARNISHED CHARM OF AN EXPERIMENT FROM A HIGHSCHOOL SCIENCE FAIR THE OTHER CALDERS IN THE SHOW ARE MORE CONVENTIONAL HOWEVER AND DO LITTLE TO REVERSE HIS CURRENT REPUTATION AS A HOPELESSLY OVEREXPOSED ARTIST WHOSE MOBILES HAVE COME TO FIT ALL TOO WELL INTO BANK LOBBIES A FAR MORE FORCEFUL PRESENCE IS DAVID SMITH WHO FIRST ABSORBED THE LESSONS OF GONZALEZ BY CURLING UP WITH ART MAGAZINES AT HOME IN THIS COUNTRY SMITH'S OWN ARCHING METAL ABSTRACTIONS SECURED HIS REPUTATION AS THE LEADING SCULPTOR OF THE ABSTRACTEXPRESSIONIST GENERATION HIS WORK IS OFTEN DESCRIBED AS DRAWING IN SPACE AS IF IT WERE MERELY 3D POLLOCK BUT SEEING HIS SCULPTURES IN THE CONTEXT OF THIS SHOW ERASES THE MYTH OF GESTURAL SPONTANEITY THAT HAS LONG SURROUNDED IT IN HUDSON RIVER LANDSCAPE 1951 CRISSCROSSING RIBBONS OF IRON LOOK LESS LIKE DRAWN LINES THAN THE MANUFACTURED CURVES OF AN AIRPLANE'S CONTOURS THE PIECE HAS A STREAMLINED STYLISH GRACE BESIDE WHICH GONZALEZ'S PIONEERING CREATIONS LOOK CLUNKY AND HARSH THE WAY COMPUTERS OR TELEVISIONS FROM THE '50S SEEM NOW TODAY'S YOUNG SCULPTORS WHO FAVOR INSTALLATIONS WITH A BULLYING POLITICAL MESSAGE MIGHT LOOK DOWN ON WELDED SCULPTURE AS A DATED TEXTBOOK LESSON YET THEY'D DO WELL TO REMEMBER THAT INSTALLATIONS OWE EVERYTHING TO THE ASSEMBLAGE AESTHETIC OF THE IRON AGE MOREOVER WELDED SCULPTURE LIKE SO MUCH OF TODAY'S ART SPECIALIZES IN LOWLY ONCEDISCREDITED MATERIALS IRON AFTER ALL IS THE ULTIMATE NONART MEDIUM IT'S DIRTY IT'S UGLY IT DOESN'T GLOW LIKE MARBLE ITS RUSTING EVERMUTATING SURFACE GOES AGAINST THE VERY IDEA OF ART'S PERMANENCE IRON DERIVES MORE FROM THE WORLD OF THE ASSEMBLY LINE THAN FROM THE WORLD OF THE ATELIER YET THIS IS THE MATERIAL WITH WHICH A NEW PATH WAS FORGED FOR SCULPTURE IN OUR CENTURY AND LOOKING BACK ON THE MOMENT WE'RE REMINDED ONCE AGAIN OF HOW THE ALCHEMY OF MODERNISM TURNED YESTERDAY'S REFUSE INTO TODAY'S GOLD 9304060038 930406 ECONOMY US AUTO SALES GREW STRONGLY IN LATE MARCH ATTRACTIVE INTEREST RATES LEASE DEALS ARE CITED GM LOSES MARKET SHARE BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SALES OF DOMESTIC CARS AND LIGHT TRUCKS REBOUNDED STRONGLY IN LATE MARCH AS CONSUMERS RETURNED TO SHOWROOMS DESPITE REPORTS THAT SUGGESTED A WEAKENING JOB MARKET AND DECLINING CONSUMER CONFIDENCE AUTO DEALERS SAID LOW INTEREST RATES ATTRACTIVE LEASE DEALS AND TRADEINS OF OLDER VEHICLES HELPED TO BOOST SALES IN THE WAKE OF SEVERE WINTER WEATHER THAT KEPT MANY EAST COAST CUSTOMERS HOME EARLIER IN THE MONTH NEVERTHELESS THE LATEST AUTO SALES DATA COULD ADD TO THE CONFUSION IN WASHINGTON OVER WHETHER THE ECONOMIC RECOVERY IS ACCELERATING ON ITS OWN OR SPUTTERING AND IN NEED OF THE ADDITIONAL FEDERAL SPENDING THE CLINTON ADMINISTRATION HAS PROPOSED OVERALL LATEMARCH SALES OF DOMESTICALLY PRODUCED VEHICLES CLIMBED TO AN ANNUAL RATE OF 114 MILLION UP FROM A RATE OF 103 MILLION VEHICLES DURING THE PREVIOUS 30 DAYS AND RATE OF 102 MILLION VEHICLES A YEAR EARLIER BUT THE IMPROVEMENT IN THE LAST 10 DAYS OF MARCH WASN'T ENOUGH TO BREAK NO 1 AUTO MAKER GENERAL MOTORS CORP'S MARKET SHARE SLIDE GM FINISHED MARCH WITH A 352 SHARE OF THE US VEHICLE MARKET DROPPING FROM ITS SHARE OF 359 A YEAR EARLIER FOR THE WHOLE FIRST QUARTER GM'S SHARE OF THE LIGHTVEHICLE MARKET SLID TO 339 FROM 359 A YEAR EARLIER ANALYSTS SAID YESTERDAY GM'S LAGGING SALES MAY FORCE IT TO CUT ITS SECONDQUARTER US PRODUCTION SCHEDULES AT LEAST ONE ANALYST LOWERED HIS EARNINGS FORECAST FOR GM BASED ON EXPECTED LOWER PRODUCTION VOLUMES GM ESTIMATES THAT IT WILL PRODUCE 417052 TRUCKS AND 734132 CARS IN THE US DURING THE CURRENT QUARTER WE DO THINK THAT GM WILL HAVE TO TRIM SOME PRODUCTION ON THE TRUCK SIDE OF THE LEDGER SAID JACK KIRNAN AN AUTO INDUSTRY ANALYST WITH SALOMON BROTHERS IN NEW YORK NOTING GM'S HEFTY 88DAY SUPPLY OF TRUCKS AT THE END OF FEBRUARY A 60DAY TO 65DAY SUPPLY OF VEHICLES IS CONSIDERED DESIRABLE GM IS LOSING GROUND PRIMARILY TO ITS DOMESTIC RIVALS FORD MOTOR CO INCREASED ITS MARCH MARKET SHARE TO 225 FROM A 206 A YEAR EARLIER IN THE FIRST QUARTER FORD GRABBED 234 OF THE US MARKET UP FROM 211 SHARE A YEAR EARLIER CHRYSLER CORP MEANWHILE BOOSTED MARCH SALES BY 39 FROM A YEAR EARLIER AND INCREASED ITS TRUCK SALES FOR THE MONTH BY 182 CHRYSLER BOOSTED ITS FIRST QUARTER SHARE OF THE US CAR AND TRUCK MARKET TO 105 A 31 IMPROVEMENT FROM AN 8 SHARE A YEAR EARLIER THE JEEP GRAND CHEROKEE AND THE CHRYSLER LH CARS ARE JUST A BONA FIDE SUCCESS SAID MR KIRNAN MISSING OUT ON THE LATEMARCH SALES REBOUND WERE MANY OF THE JAPANESE AUTO MAKERS WHICH AS A GROUP CONTINUED TO LOSE US MARKET SHARE TOGETHER JAPANESE NAMEPLATES HAD A 27 SHARE OF THE US LIGHTVEHICLE MARKET IN THE FIRST QUARTER DOWN FROM 30 A YEAR EARLIER TOYOTA MOTOR CORP AND HONDA MOTOR CO BOTH LOST GROUND TOYOTA'S FIRSTQUARTER MARKET SHARE FELL TO 88 FROM 99 A YEAR EARLIER WHILE HONDA'S MARKET SHARE SLID TO 74 FROM 89 NISSAN MOTOR CORP HOWEVER REPORTED STRONG SALES AND BOOSTED ITS SHARE OF THE CAR AND TRUCK MARKET TO 51 FROM 44 THE COMPANY ATTRIBUTED ITS SUCCESS TO STRONG SALES OF ITS ALTIMA MIDSIZE SEDAN QUEST MINIVAN AND PATHFINDER SPORTUTILITY VEHICLE LIKEWISE EUROPEAN AUTO MAKERS AS A WHOLE FAILED TO MAKE SIGNIFICANT GAINS IN THE US MARKET DURING MARCH WITH HIGHERPRICED IMPORTS CONTINUING TO SUFFER AMONG THOSE TO SEE SALES SLIP IN MARCH WERE FIAT SPA'S ALFA ROMEO UNIT IN ITALY WHOSE US SALES FELL 503 GERMANY'S VOLKSWAGEN AG DOWN 485 PORSCHE AG DOWN 249 AND DAIMLERBENZ AG'S MERCEDESBENZ UNIT DOWN 246 BAYERISCHE MOTOREN WERKE AG HOWEVER POSTED A SALES GAIN OF 85 FOR THE MONTH SALES OF SOME USMADE LUXURY CARS HAVE ALSO BEEN SLUGGISH GM'S CADILLAC DIVISION REPORTS DELIVERIES OF ITS LUXURY CARS ARE OFF 234 THROUGH MARCH 20 SOME DEALERS SAID THE LATEMARCH REBOUND SHOULD HERALD A HEALTHY SPRING SALES SEASON AS CUSTOMERS WITH OLDERTHANAVERAGE CARS CONTINUE TO SEEK GOOD DEALS IN THE SHOWROOMS THE TRADEINS THAT ARE COMING IN ARE FROM ABSOLUTELY WORNOUT CARS SAID BOB RICHARDS GENERAL MANAGER AT HOWARD CHEVROLET IN BOSTON BUT AT LEAST ONE INDUSTRY ANALYST EXPECTS THAT THE LATEMARCH UPTICK IN SALES WILL HAVE A SHORTLIVED IMPACT NOTE THERE WERE 27 SELLING DAYS IN THE MOST RECENT MONTH AND 26 A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME MARKETSHARE FIGURES FOR CERTAIN AUTO MAKERS WERE INCORRECTLY DESCRIBED IN AN ARTICLE TUESDAY FIGURES FOR COMPANIES INCLUDING GENERAL MOTORS CORP CHRYSLER CORP FORD MOTOR CO AND NISSAN MOTOR CORP WERE BASED ON US SALES OF PASSENGER CARS ONLY THE ARTICLE INCORRECTLY SAID THE FIGURES WERE BASED ON COMBINED SALES OF LIGHT VEHICLES INCLUDING CARS AND TRUCKS A TABLE ACCOMPANYING THE STORY IDENTIFIED THE MARKETSHARE FIGURES CORRECTLY 9304060037 930406 WHAT'S NEWS WORLDWIDE THE UN WEIGHED HARSHER SANCTIONS AS A NEW ASSAULT WAS REPORTED IN BOSNIA SECURITY COUNCIL MEMBERS STUDIED A DRAFT RESOLUTION THAT WOULD BAN UNAUTHORIZED SHIPMENTS OF SUPPLIES THROUGH YUGOSLAVIA AND STOP SHIPS ALONG THE DANUBE THE DRAFT ALSO WOULD FREEZE YUGOSLAV ASSETS ABROAD IN A BID TO PRESSURE BOSNIAN SERBS TO ACCEPT A UN PEACE PLAN A VOTE ON THE RESOLUTION COULD COME NEXT WEEK MEANWHILE SERB FIGHTERS REPORTEDLY ADVANCED ON SREBRENICA AND A UN OFFICIAL WARNED THAT THE MUSLIM TOWN COULD FALL TO THE SERBS SECRETARY OF STATE CHRISTOPHER SAID THE US MAY ASK ITS ALLIES TO LIFT AN ARMS EMBARGO ON BOSNIA THAT HAS HOBBLED MUSLIM FORCES BUT EC MEDIATOR OWEN DISMISSED THE US SUGGESTION YELTSIN RETURNED TO MOSCOW WITH PLEDGES OF US AID AND BOTH HIS OPPONENTS AND SUPPORTERS AGREED THAT THE WEST SHOULD SET UP AN AGENCY IN THE RUSSIAN CAPITAL TO DIRECTLY DISTRIBUTE THE AID YELTSIN STOPPED IN SIBERIA ON THE WAY HOME TO APPEAL FOR VOTER SUPPORT RUSSIA ACCUSED UKRAINE OF BREAKING PROMISES TO SURRENDER NUCLEAR WEAPONS LEFT FROM THE FORMER SOVIET UNION MEANWHILE A GROUP OF US LAWMAKERS SAID IN KIEV THAT THEY RECEIVED OFFICIAL ASSURANCES THAT UKRAINE WOULD RATIFY TWO KEY ACCORDS REINFORCING ITS NONNUCLEAR STATUS SOUTH AFRICA'S PRESIDENT DE KLERK HELD AN UNEXPECTED MEETING WITH BLACK NATIONALIST LEADER MANDELA AFTER YESTERDAY'S MASSACRE OF 10 BLACKS IN PORT SHEPSTONE POLICE AND OPPOSITION LEADERS SAID 23 PEOPLE HAD BEEN KILLED IN SOUTH AFRICA SINCE FRIDAY THE DAY AFTER BLACK AND WHITE POLITICAL PARTIES MET TO RESUME CONSTITUTIONAL TALKS CLINTON'S HEALTH CARE PLAN IS EXPECTED TO INCLUDE A UNIVERSAL IDENTITY CARD THAT MAY USE SOCIAL SECURITY NUMBERS TO KEEP TRACK OF PATIENTS ACCORDING TO WHITE HOUSE AND CONGRESSIONAL AIDES INVOLVED IN DRAFTING THE PACKAGE SEPARATELY A GROUP OF DOCTORS CHARGED THAT THE WHITE HOUSE TASK FORCE IS CONTINUING TO KEEP ITS RECORDS SECRET A FEDERAL APPEALS COURT DECLINED TO INTERCEDE IN THE RODNEY KING BEATING TRIAL IN LOS ANGELES REFUSING A DEFENSE REQUEST TO BLOCK THE SHOWING OF A VIDEOTAPE IN WHICH ONE POLICE OFFICER THEODORE BRISENO ACCUSES A CODEFENDANT OF HITTING KING ON THE HEAD THE VIDEOTAPE SHOWS BRISENO TESTIFYING DURING AN EARLIER STATE TRIAL THE US MOVED TO QUASH ANY POTENTIAL JAPANESE POLITICAL FLAP AFTER CLINTON WAS QUOTED AS TELLING YELTSIN WHEN THE JAPANESE SAY YES' TO US THEY OFTEN MEAN NO' THE COMMENT BECAME PUBLIC WHEN A RUSSIAN NOTETAKER LEFT BEHIND HIS JOURNAL AT A DINNER IN VANCOUVER A TELEVISION REPORTER FOUND THE JOURNAL FLORIDA GOV CHILES ASSURED A GERMAN DIPLOMAT OUTRAGED AT THE SLAYING OF A GERMAN WOMAN FRIDAY THAT THE STATE IS A SAFE PLACE FOR FOREIGN VISITORS THE GOVERNOR ALSO SOUGHT FEDERAL HELP TO DEAL WITH A RISE IN ATTACKS MOMENTS AFTER HIS APPEAL THREE DANISH TOURISTS WERE ASSAULTED AND ROBBED AN ALABAMA COURT RULED THAT THE STATE'S PUBLIC SCHOOL SYSTEM IS UNCONSTITUTIONAL BECAUSE IT DOESN'T GIVE AN ADEQUATE EDUCATION COURTS IN OTHER STATES HAVE RULED THAT SCHOOL FINANCING RULES DISCRIMINATE AGAINST THE POOR BUT THE ALABAMA JUDGE IN EFFECT SAID LAST WEEK THAT THE SCHOOLS AREN'T GOOD ENOUGH THE STATE DEPARTMENT REJECTED A REQUEST FROM EGYPT'S MUBARAK FOR THE US TO PRESSURE ISRAEL TO SPEED ITS TIMETABLE FOR THE RETURN OF PALESTINIAN DEPORTEES MUBARAK MET WITH SECRETARY OF STATE CHRISTOPHER ITALIAN MAGISTRATES NOTIFIED FORMER CHRISTIAN DEMOCRATIC PRIME MINISTER ANDREOTTI HE IS UNDER INVESTIGATION FOR CORRUPTION ANDREOTTI ALREADY IS BEING INVESTIGATED FOR ALLEGED MAFIA LINKS MEANWHILE THERE WERE REPORTS THAT ANOTHER FORMER PREMIER FORLANI IS BEING INVESTIGATED PAKISTANI FORCES ARRESTED THE LEADER OF A MARCH ON THE INDIANDEFENDED TRUCE LINE DIVIDING KASHMIR HUNDREDS OF OTHER MARCHERS ALSO WERE ARRESTED AS THEY TRIED TO DEMONSTRATE THEIR SUPPORT FOR A SEPARATIST REBELLION IN INDIANRULED KASHMIR AZERBAIJAN SAID IT REPULSED A MAJOR ARMENIAN ATTACK ON THE SOUTHERN TOWN OF FIZULI THAT THREATENED TO CUT THE FORMER SOVIET REPUBLIC IN HALF CAPTURING FIZULI WOULD HAVE BROUGHT ALL OF SOUTHWESTERN AZERBAIJAN UNDER ARMENIAN CONTROL ALL BUT 500 OF THE TOWN'S 20000 RESIDENTS HAVE FLED NORTH CAROLINA WON THE NATIONAL COLLEGIATE BASKETBALL CHAMPIONSHIP DEFEATING MICHIGAN 7771 9304060035 930406 INTERNATIONAL AS YELTSIN RETURNS RUSSIANS WANT WEST NOT BUREAUCRATS TO DISTRIBUTE NEW AID BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW AS RUSSIAN PRESIDENT BORIS YELTSIN RETURNED HOME WITH PLEDGES OF US AID OPPONENTS AND SUPPORTERS AGREED THAT THE WEST SHOULD SET UP AN AGENCY HERE TO DIRECTLY DISTRIBUTE THE AID AND BYPASS THE CORRUPT BUREAUCRACY CRITICS OF THE PRESIDENT DISMISSED THE PROMISE OF 16 BILLION IN AID AS MEANINGLESS BECAUSE THEY DON'T BELIEVE MUCH OF IT WILL REACH THE PEOPLE WHO NEED IT MOST OF IT GETS INTO THE POCKETS OF MAFIA AND THE CORRUPT NOMENCLATURA OR HIGH OFFICIALS SAYS VIKTOR AKSYUSHITS A HARDLINE MEMBER OF PARLIAMENT I WILL DO MY BEST TO HELP YOU IF HONEST AMERICANS WILL COME TO VLADIMIR AND MAKE IT POSSIBLE TO PUT ASIDE THE THIEVES AND HELP ORDINARY RUSSIANS SAYS ANOTHER OPPONENT OF THE PRESIDENT IONA ANDRONOV A DEPUTY FROM VLADIMIR AND VICE CHAIRMAN OF THE PARLIAMENT'S FOREIGN AFFAIRS COMMITTEE IF AMERICANS CAN AVOID THE DIRTY HANDS OF YELTSIN'S CORRUPT OFFICIALS OF COURSE I APPROVE OF THE AID MR YELTSIN'S SUPPORTERS SAY THAT EVEN IF MOSCOW BUREAUCRATS DISTRIBUTE THE AID HONESTLY AN INTERNATIONAL AGENCY WOULD GIVE THE WHOLE PROCESS MORE CREDIBILITY ESPECIALLY OUTSIDE MOSCOW IT WOULD BE USEFUL IF SOME WESTERN COUNTRY COULD CREATE SOME ORGANIZATION TO OVERSEE HOW IT'S SPENT SAYS YURI DAVIDOV AN ANALYST AT THE USACANADA INSTITUTE A MOSCOW THINK TANK EVEN IF SUCH AN AGENCY IS SEEN AS A FORM OF INTERFERENCE IN INTERNAL AFFAIRS HE SAYS REGIONAL OFFICIALS WILL SUPPORT THIS IDEA BECAUSE THEY FEAR THE CENTRAL GOVERNMENT WILL DISTRIBUTE THE AID AND THEY FEEL BETTER IF THE OTHER SIDE WOULD DO IT ON SUNDAY MR CLINTON SAID THE US AND RUSSIA HAD AGREED TENTATIVELY THAT THE GROUP OF SEVEN LEADING INDUSTRIAL NATIONS COULD OPEN AN OFFICE IN MOSCOW TO MONITOR AID DISBURSEMENT THE LACK OF TRUST IN THE CENTRAL GOVERNMENT IS ONE OF THE TOUGHEST PROBLEMS FACING MR YELTSIN IN THE FEW WEEKS BEFORE A REFERENDUM PLANNED FOR APRIL 25 THE REFERENDUM WHICH MANY IN THE CONSERVATIVE PARLIAMENT HOPE WILL LEAD TO MR YELTSIN'S OUSTER INCLUDES VOTES OF CONFIDENCE IN THE PRESIDENT AND HIS ECONOMIC REFORM PROGRAM AND THE OPTION OF HOLDING EARLY ELECTIONS FOR PRESIDENT AND FOR THE EXISTING CONGRESS THE AID PACKAGE COULD HELP MR YELTSIN GAIN POPULAR SUPPORT THE CAMPAIGNING BEGAN BEFORE HE EVEN MADE IT BACK TO MOSCOW MR YELTSIN STOPPED IN THE SIBERIAN CITY OF BRATSK ON THE WAY HOME AND VISITED AN ALUMINUM PLANT IN THE PROCESS OF PRIVATIZING HE TOLD THE WORKERS MOST OF WHOM DIDN'T KNOW THE DETAILS OF THE AID PACTS ABOUT THE BROAD RESULTS OF THE SUMMIT AND IN PARTICULAR ABOUT THE CREDITS INTENDED FOR MEDIUMSIZED AND SMALL BUSINESSES IN SIBERIA AND THE RUSSIAN FAR EAST THEN MR YELTSIN ASKED FOR HELP I PROPOSE A SIMPLE FORMULA OF VOTING TO ANSWER YES TO ALL THE FOUR QUESTIONS HE SAID ACCORDING TO THE OFFICIAL ITARTASS NEWS AGENCY DON'T BE AFRAID TO SAY YES ALSO TO THE QUESTION ABOUT REELECTING THE PRESIDENT MR YELTSIN'S REMARKS IMPLIED THAT HE'S INCLINED TO TAKE HIS CHANCES WITH THE PARLIAMENTRUN REFERENDUM RATHER THAN HOLDING HIS OWN PARALLEL PLEBESCITE BUT NO OFFICIAL DECISION HAS BEEN MADE ON THIS CRUCIAL QUESTION THE GOVERNMENT IS CHALLENGING IN CONSTITUTIONAL COURT THE REFERENDUM'S METHOD IN WHICH THE QUESTIONS MUST RECEIVE SUPPORT FROM MORE THAN 50 OF ELIGIBLE VOTERS IN ORDER TO PASS SOME ADVISERS HAVE SAID THE PRESIDENT IS COMMITTED TO HOLDING HIS OWN VOTE BUT OTHERS DISAGREE THE PLEDGE OF AID MAY PROVE TO BE LESS SIGNIFICANT IN ECONOMIC TERMS THAN IN PSYCHOLOGICAL TERMS AT LEAST IN THE SHORT RUN OPPONENTS AND SUPPORTERS OF THE PRESIDENT SAY MANY RUSSIANS INITIALLY REACTED CYNICALLY TO NEWS OF THE AID SAYING THEY WOULD BELIEVE IT WHEN THEY SEE IT BUT THE SUPPORT MR CLINTON GAVE MR YELTSIN IS ALREADY HAVING AN IMPACT ON THE PRESIDENT'S PUBLIC IMAGE IT'S IMPORTANT FROM THE POINT OF VIEW THAT PEOPLE IN THIS COUNTRY WILL UNDERSTAND THAT WHAT'S GOING ON IN RUSSIA HAS IMPLICATIONS FOR THE WHOLE WORLD AND THEY MAY FEEL MORE RESPONSIBLE FOR THEIR OWN REFORMS SAYS MR DAVIDOV PEOPLE ALSO UNDERSTAND THAT THEY AREN'T ALONE THAT THE WHOLE WORLD TRIES TO DO EVERYTHING IT CAN AND THIS UNDERSTANDING IS VERY IMPORTANT BUT OPPONENTS OF THE PRESIDENT ALSO SAY THAT THE US AID AND SUPPORT FOR MR YELTSIN IS FURTHER PROOF THAT THE PRESIDENT IS A PUPPET OF THE WEST THE SUMMIT MEETING IS SURE TO PROVIDE FUEL FOR SUCH ACCUSATIONS IN THE RUNUP TO THE REFERENDUM I HAVE NOTHING AGAINST RECEIVING ANY HONEST AID BUT THE BIG QUESTION IS FOR WHAT PURPOSE SAYS MR ANDRONOV MR CLINTON'S PRONOUNCING HIS HELP FOR RUSSIAN DEMOCRACY IS ACTUALLY SUPPORTING A NEW DICTATOR HERE BUT I AM NOT BLAMING AMERICA YOU'RE ACTING IN YOUR NATIONAL INTEREST AND INTERFERING IN RUSSIA'S INTERNAL AFFAIRS HE ADDS YOU HAVE DECIDED THE DESTRUCTION OF RUSSIA IS IN AMERICA'S INTERESTS SOME CRITICS ALSO POINT OUT THAT CELEBRATING THE AID IS PURE PROPAGANDA FOR PRESIDENT YELTSIN BECAUSE THE AMOUNT IS A PITTANCE BESIDE RUSSIA'S HUGE NEEDS IT ALSO IS A TINY FRACTION OF THE ESTIMATED 15 BILLION TO 30 BILLION LOST IN CAPITAL FLIGHT WHICH HAS SAPPED RUSSIA'S HARD CURRENCY RESERVES IN RECENT YEARS AS CENTRAL CONTROL HAS WEAKENED AND CORRUPTION SPREAD THEY SAY SOME SUPPORTERS SAY THAT PART OF THE AID IS GOOD BUT THAT SOME OF IT MAY BE COUNTERPRODUCTIVE THE PORTION DEDICATED TO HELPING FOREIGN INVESTMENT IS EXTRAORDINARILY IMPORTANT SAYS VADIM IVANOV DIRECTOR OF A MOSCOW ECONOMICS INSTITUTE BUT THE FOOD CREDITS MAY ULTIMATELY DO LITTLE TO HELP RUSSIA BREAK DOWN THE EXISTING CORRUPT AND INEFFICIENT STRUCTURES AND DEVELOP GREATER SELFSUFFICIENCY HE SAYS RATHER SUCH AID BOLSTERS THE EXISTING BUREAUCRATIC STRUCTURE THAT LIVES OFF THE LUCRATIVE BUSINESS OF IMPORTING AND DISTRIBUTING GRAIN RUSSIA HAS THE POTENTIAL TO AVOID ALL GRAIN IMPORTS SAYS MR IVANOV BUT THE EXISTING SYSTEM HAS NO DESIRE TO UNDO ITSELF EVEN WHEN IT'S NO LONGER NEEDED 9304060034 930406 MONDAY'S MARKETS STOCKS BONDS SHOW FIRMNESS DOLLAR DECLINES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK AND BOND PRICES STABILIZED AFTER FRIDAY'S FRENZIED SELLING THE DOLLAR DECLINED BRIEFLY TOUCHING ANOTHER RECORD LOW AGAINST THE YEN THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 838 POINTS TO 337919 STANDARD & POOR'S 500STOCK INDEX GAINED 090 TO 44229 AND THE NASDAQ COMPOSITE INDEX ADDED 086 TO 67071 THE TREASURY'S 30YEAR BOND WHICH PLUNGED FRIDAY ON FEARS THAT A RISE IN AVERAGE HOURLY EARNINGS MAY BE A SIGN OF STEPPEDUP INFLATION ALSO RECOUPED SOME OF ITS LOSSES THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 3/8 POINT OR MORE THAN 375 FOR EACH 1000 FACE AMOUNT INVESTORS LOOKED AT THE LAY OF THE LAND OVER THE WEEKEND AND THEY DECIDED THAT THE WHEELS WEREN'T FALLING OFF THE CAR SAID DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY MR JARRETT SAID HE THINKS THE BOND MARKET'S INFLATION FEARS ARE OVERDONE HE SAID THAT IF THIS WEEK'S REPORTS ON CONSUMER AND PRODUCER PRICES SHOW GAINS BELOW EXPECTATIONS THE BOND MARKET WILL BE POISED FOR A STRONG RALLY THAT COULD PUSH THE YIELD ON THE TREASURY'S 30YEAR ISSUE WELL BELOW 7 AGAIN A DROP IN INTEREST RATES WOULD LIKELY FUEL HEALTHY GAINS IN THE STOCK MARKET TOO WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 042 TO 10284 STOCK PRICES ROSE VOLUME TOTALED 2386 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 988 ISSUES FELL AND 916 ISSUES ROSE BOND PRICES GAINED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL TO 702 SHORTERTERM DEBT ISSUES ROSE TOO THE DOLLAR MOVED LOWER IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15948 MARKS AND 11370 YEN COMPARED WITH 15975 MARKS AND 11375 YEN FRIDAY 9304060032 930406 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED APRIL 2 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER BEXAR COUNTY HEALTH FACILITIES DEVELOPMENT CORP WILL REDEEM ON MAY 1 1993 THE FOLLOWING HOSPITAL REVENUE BONDS SERIES 1983 325000 PRINCIPAL AMOUNT OF ITS 95 BONDS DUE 1994 360000 OF 96 DUE 1995 395000 OF 965 DUE 1996 435000 OF 97 DUE 1997 485000 OF 97 DUE 1998 AND 17880000 OF 975 DUE 2013 ALL BONDS ARE DUE ON MAY 1 OF THEIR RESPECTIVE YEARS FROST NATIONAL BANK OF SAN ANTONIO IS PAYING AGENT CENTRAL MICHIGAN UNIVERSITY WILL REDEEM ON MAY 1 1993 40000 PRINCIPAL AMOUNT OF ITS UNIVERSITY HOUSING REVENUE BONDS TERM B DUE NOV 1 2006 SOCIETY BANK MICHIGAN IN DALLAS TEXAS IS TRUSTEE COOK & LAKE COUNTIES ILL NORTHWEST WATER COMMISSION WILL REDEEM ON MAY 1 1993 THE FOLLOWING WATER REVENUE BONDS SERIES 1983 DUE MAY 1 OF THE INDICATED YEAR 84 BONDS DUE 1994 85 DUE 1995 86 DUE 1996 87 DUE 1997 9 DUE MAY 1 2003 AND 925 DUE 2013 CONTINENTAL BANK CHICAGO IS TRUSTEE DURHAM NC WILL REDEEM ON MAY 1 1993 THE FOLLOWING WATER BONDS SERIES A 8 BONDS DUE MAY 1 199499 AND 81 BONDS DUE MAY 1 200001 WACHOVIA BANK & TRUST WINSTONSALEM NC IS PAYING AGENT JOLIET ILL WILL REDEEM ON MAY 1 1993 ITS RESIDENTIAL MORTGAGE REVENUE BONDS SERIES 1979 DUE MAY 1 199399 AND 2009 CONTINENTAL BANK CHICAGO IS TRUSTEE LOUISA VA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON MAY 1 1993 250000 PRINCIPAL AMOUNT OF ITS 6 3/4 POLLUTION CONTROL REVENUE BONDS SERIES 1976 DUE MAY 1 2006 CHASE MANHATTAN BANK NEW YORK IS TRUSTEE MOUNT VERNON ILL WILL REDEEM ON MAY 1 1993 THE FOLLOWING SEWERAGE REFUNDING AND IMPROVEMENT REVENUE BONDS SERIES 1975 765 DUE 199496 AND 77 DUE 19972006 BOATMEN'S TRUST CO ST LOUIS IS PAYING AGENT NEW YORK CITY HOUSING DEVELOPMENT CORP WILL REDEEM ON MAY 1 1993 THE FOLLOWING GENERAL HOUSING BONDS 840000 PRINCIPAL AMOUNT OF ITS 7 1/2 SERIES D BONDS DUE MAY 1 2023 AND 80000 OF 9 SERIES E DUE MAY 1 2022 CITIBANK NEW YORK IS TRUSTEE NEW YORK STATE ENERGY RESEARCH & DEVELOPMENT AUTHORITY WILL REDEEM ON MAY 1 1993 ITS 9 1/8 GAS FACILITIES REVENUE BONDS SERIES 1983 A DUE MAY 1 2013 CHEMICAL BANK NEW YORK IS TRUSTEE NORTHERN MICHIGAN UNIVERSITY WILL REDEEM ON MAY 1 1993 30000 PRINCIPAL AMOUNT OF ITS 465 APARTMENT REVENUE REFUNDING BONDS TERM B DUE MAY 1 2005 SOCIETY BANK MICHIGAN IN DALLAS TEXAS IS TRUSTEE PETERSBURG ILL WILL REDEEM ON MAY 1 1993 ITS WATERWORKS AND SEWERAGE REVENUE BONDS SERIES 1979 DUE MAY 1 19942002 AMERICAN NATIONAL BANK & TRUST CHICAGO IS PAYING AGENT POPLAR GROVE ILL WILL REDEEM ON MAY 1 1993 95000 PRINCIPAL AMOUNT OF ITS WATERWORKS AND SEWERAGE REVENUE BONDS DUE MAY 1 199499 POPLAR GROVE STATE BANK POPLAR GROVE ILL IS PAYING AGENT RARITAN TOWNSHIP MUNICIPAL UTILITIES AUTHORITY WILL REDEEM ON MAY 1 1993 125000 PRINCIPAL AMOUNT OF ITS 5 1/2 REVENUE BONDS SERIES 1977 DUE MAY 1 2000 FIRST FIDELITY BANK PHILADELPHIA IS TRUSTEE RUTGERS THE STATE UNIVERSITY WILL REDEEM ON MAY 1 1993 ITS REVENUE BONDS SERIES L DUE MAY 1 1994 FIRST FIDELITY BANK NEWARK NJ IS ESCROW AGENT SAN FRANCISCO CALIF AIRPORTS COMMISSION WILL REDEEM ON MAY 1 1993 THE FOLLOWING SAN FRANCISCO INTERNATIONAL AIRPORT REVENUE BONDS SERIES D DUE MAY 1 OF THE INDICATED YEARS 9 DUE 1994 92 DUE 1995 94 DUE 1996 96 DUE 1997 97 DUE 1998 98 DUE 19992000 9875 DUE 2001 99 DUE 200203 10 DUE 200405 10125 DUE 2009 925 DUE 2012 AND 775 DUE 2014 THE COMMISSION WILL ALSO REDEEM THE FOLLOWING SERIES E BONDS OF THE ABOVE DESCRIPTION 64 DUE 1994 65 DUE 1995 66 DUE 1996 675 DUE 1997 68 DUE 1998 69 DUE 1999 7 DUE 200001 71 DUE 200203 72 DUE 2004 725 DUE 2005 735 DUE 2010 AND 745 DUE 2020 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE SPRINGFIELD ILL WILL REDEEM ON MAY 1 1993 1090000 PRINCIPAL AMOUNT OF ITS RESIDENTIAL MORTGAGE REVENUE BONDS SERIES 1979 CONTINENTAL BANK CHICAGO IS CUSTODIAN WASHINGTON COUNTY PA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON APRIL 16 1993 THE FOLLOWING 1983 POLLUTION CONTROL REVENUE BONDS ITS 9 3/4 SERIES B DUE JAN 15 2003 AND ITS 9 1/2 SERIES C DUE MARCH 15 2003 MELLON BANK PITTSBURGH IS TRUSTEE WESTERN MICHIGAN UNIVERSITY WILL REDEEM ON MAY 1 1993 110000 PRINCIPAL AMOUNT OF ITS 535 TERM B HEALTH SERVICES BUILDING BONDS DUE MAY 1 1993 SOCIETY BANK MICHIGAN IN DALLAS TEXAS IS TRUSTEE AMERICAN TELEPHONE & TELEGRAPH CO WILL REDEEM ON APRIL 23 1993 ITS 9 30YEAR DEBENTURES DUE MARCH 17 2016 CHEMICAL BANK LONDON IS PAYING AGENT CAMPBELL SOUP CO WILL REDEEM ON APRIL 30 1993 ITS 7 1/2 NOTES DUE 1998 BANKERS TRUST CO LONDON IS PAYING AGENT DAYTON POWER & LIGHT CO A UNIT OF DPL INC WILL REDEEM ON MAY 3 1993 22500 SHARES OF ITS 9 3/8 PREFERRED STOCK SERIES I FIRST NATIONAL BANK OF BOSTON IS PAYING AGENT FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM FOLLOWING MEDIUMTERM NOTE ISSUES ON MAY 4 1993 ITS 845 DUE MAY 4 1998 ON MAY 6 1993 ITS 84 DUE MAY 6 1998 ON MAY 17 1993 ITS 771 DUE MAY 15 1995 AND ON MAY 17 1993 ITS 75 DUE MAY 16 1995 HOME SHOPPING NETWORK WILL REDEEM ON MAY 11 1993 ITS 5 1/2 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2002 BANKERS TRUST CO NEW YORK IS TRUSTEE NORTHERN STATES POWER CO WILL REDEEM ON MAY 1 1993 ITS 9 1/2 FIRST MORTGAGE BONDS DUE MAY 1 2005 HARRIS TRUST & SAVINGS BANK CHICAGO IS TRUSTEE TRANSCONTINENTAL GAS PIPE LINE CORP WILL REDEEM ON MAY 1 1993 10000 SHARES OF ITS 480 SERIES AND 12500 SHARES OF ITS 500 SERIES CUMULATIVE PREFERRED STOCK FIRST CHICAGO TRUST CO NEW YORK IS FORWARDING AGENT WEINGARTEN REALTY INVESTORS WILL REDEEM ON APRIL 22 1993 ITS CONVERTIBLE DEBENTURES DUE 2003 CHEMICAL BANK LONDON IS TRUSTEE 9304060031 930406 SPORT SUPPLY REVENUE RISES DALLAS SPORT SUPPLY GROUP INC SAID IT RECORDED GROSS REVENUE FOR MARCH OF 7 MILLION A 19 INCREASE FROM THE 59 MILLION POSTED A YEAR AGO AND THE LARGEST MONTHLY REVENUE EVER FOR THE COMPANY THE DIRECT MARKETER OF SPORTS EQUIPMENT ATTRIBUTED THE GAIN TO CONTINUING STRENGTH IN ALL OF ITS OPERATING SEGMENTS THE COMPANY SAID MARCH ISN'T USUALLY ITS STRONGEST MONTH AND ADDED THAT IT EXPECTS REVENUE TO EXCEED 7 MILLION AT LEAST TWICE IN 1993 SPORT SUPPLY HAD REVENUE OF 574 MILLION FOR THE YEAR ENDED DEC 31 AND NET INCOME OF 31 MILLION OR 80 CENTS A SHARE 9304060030 930406 BUSINESS BRIEF DEPRENYL RESEARCH LTD FIRM SEES FIRSTPERIOD LOSS LOWER EARNINGS FOR FULL YEAR DEPRENYL RESEARCH LTD SAID IT EXPECTS TO REPORT A FIRSTQUARTER LOSS OF ABOUT 14 TO 16 CANADIAN CENTS 11 TO 13 US CENTS A SHARE AND THAT NET INCOME FOR THE YEAR LIKELY WILL FALL BELOW THE C63 MILLION US49 MILLION OR 37 CANADIAN CENTS A SHARE IT REPORTED IN 1992 ONETIME CHARGES INCLUDING A WRITEOFF OF EXPENSES RELATED TO THE LAUNCH OF DERMATOLOGY PRODUCTS AND LOSSES ON ITS INVESTMENT PORTFOLIO WILL CUT FIRSTQUARTER INCOME SAID MARTIN BARKIN PRESIDENT OF DEPRENYL A TORONTOBASED PHARMACEUTICAL DEVELOPMENT AND MARKETING CONCERN WHILE DEPRENYL EXPECTS ITS PHARMACEUTICAL REVENUES TO RISE IN 1993 MR BARKIN SAID THE CHARGES TOGETHER WITH THE IMPACT OF LOWER INVESTMENT INCOME AND ONETIME GAINS SEEN IN 1992 LIKELY WILL RESULT IN LOWER NET INCOME FOR THE YEAR MR BARKIN DESCRIBED THE FIRSTQUARTER CHARGES AS CLEARING THE DECK FOR WHAT WE FEEL WILL BE GOOD PROGRESS DURING THE BALANCE OF THE YEAR 9304060029 930406 WHO'S NEWS POLYGRAM NV POLYGRAM NV LONDON THE RECORDING CONCERN SAID IT WILL EXPAND ITS BOARD AS OF APRIL 28 TO INCLUDE MICHAEL A KUHN THE 43YEAROLD PRESIDENT OF THE POLYGRAM FILMED ENTERTAINMENT DIVISION POLYGRAM WHICH IS ABOUT 80 OWNED BY PHILIPS ELECTRONICS NV OF THE NETHERLANDS SAID THE APPOINTMENT HEIGHTENS THE PROFILE OF ITS BURGEONING MOVIE DIVISION WITHIN THE COMPANY'S CORPORATE MANAGEMENT CURRENTLY THE BOARD HAS SIX PEOPLE 9304060027 930406 INTERNATIONAL BRIEF HOECHST AG GERMAN CHEMICAL CONCERN TO UNDERGO SAFETY CHECK GERMAN CHEMICAL COMPANY HOECHST AG WHICH HAS HAD 13 INDUSTRIAL ACCIDENTS IN SIX WEEKS WILL UNDERGO A FORMAL SAFETY EXAMINATION PROPOSED BY HESSE'S STATE ENVIRONMENTAL MINISTRY THE EXAMINATION WILL LOOK AT EMPLOYEE RESPONSIBILITY FOR THE MISHAPS AS WELL AS SAFETY ORGANIZATION SAID ENVIRONMENTAL MINISTER JOSCHKA FISCHER IN A NEWS BRIEFING AFTER A TWOHOUR DISCUSSION WITH HOECHST BOARD MEMBERS AND EMPLOYEES IN THE COMPANY'S WIESBADEN HEADQUARTERS IN ONE OF THE ACCIDENTS A WORKER DIED IN SOME OF THE OTHERS TOXIC CHEMICALS WERE RELEASED INTO THE ENVIRONMENT THE ENVIRONMENTAL MINISTRY ALSO DEMANDED THE SUSPENSION DURING THE EXAMINATION OF HOECHST'S BOARD MEMBER RESPONSIBLE FOR SAFETY KARL HOLOUBEK HOECHST SAID THAT ITS SAFETY AND ENVIRONMENTAL SECTOR WOULD PASS TO THE DIRECT CONTROL OF THE ENTIRE BOARD DURING THE STUDY THE GOVERNMENT WILL APPOINT A THIRDPARTY EXPERT TO CONDUCT THE STUDY WHICH WILL BE PAID FOR BY HOECHST MR HOLOUBEK SAID HOECHST WILL SHOW THAT ITS SAFETY SYSTEM IS STATE OF THE ART HE SAID HOWEVER THE EXAMINATION COULD YIELD KNOWLEDGE THAT COULD HELP HOECHST IMPROVE ITS SYSTEM HE ADDED 9304060026 930406 YOUR MONEY MATTERS INVESTMENT DARTBOARD STOCKPICKING PROS MAKE THEIR POINT AGAINST DARTS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL BOUNCING BACK FROM A HUMILIATING DEFEAT FOR THE PROFESSIONAL STOCKPICKING COMMUNITY THE INVESTMENT PROS IN THE LATEST RUNNING OF THIS COLUMN'S STOCKPICKING COMPETITION SCORED A SOLID VICTORY LED BY TOM L EPPERSON DIRECTOR OF RESEARCH AT MORGAN KEEGAN & CO IN MEMPHIS TENN THE PROS CHALKED UP AN AVERAGE GAIN OF 252 IN THE CONTEST THAT RAN FROM OCTOBER THROUGH MARCH THEY HANDSOMELY OUTDID THE DOW JONES INDUSTRIAL AVERAGE WHICH ROSE 9 AND THEY BEAT THE DARTBOARD PORTFOLIO RANDOMLY PICKED BY A HEAVE OF DARTS AT THE STOCK LISTINGS WHICH ROSE 187 FOR THOSE WHO ARE KEEPING SCORE AT HOME THE PROFESSIONALS HAVE NOW WON 19 TIMES AND THE DARTS 15 TIMES IN A SERIES OF 34 OVERLAPPING SIXMONTH CONTESTS THE AVERAGE GAIN HAS BEEN 88 FOR THE PROS 56 FOR THE DARTS AND 39 FOR THE DOW JONES INDUSTRIALS THE LATEST RESULTS MIGHT EVOKE A SIGH OF RELIEF AMONG INVESTMENT PROFESSIONALS AND PEOPLE WHO PAY FOR THEIR STOCKPICKING WISDOM ALL FOUR OF THE PROS IN THE SEPTEMBER THROUGH FEBRUARY OUTING PICKED LOSERS AND THE DARTS RAN AWAY WITH THE CONTEST BY A 423PERCENTAGEPOINT MARGIN IN THE NEW CONTEST THAT BEGINS TODAY THREE OF THE FOUR CONTESTANTS PICK A HIGHTECHNOLOGY STOCK MR EPPERSON WHO LED THE PROFESSIONAL BRIGADE LAST TIME OUT WITH A 921 GAIN IN SCI SYSTEMS INC NOW GOES FOR A HEALTHCARE STOCK NATIONAL REHABILITATION CENTERS INC OF NASHVILLE TENN PROVIDING PHYSICAL REHABILITATION FOR PEOPLE INJURED ON THE JOB HAS TRADITIONALLY BEEN A SCATTERED ACTIVITY DONE BY A DOCTOR HERE A HOSPITAL THERE BUT NATIONAL REHABILITATION IS USING A CHAIN APPROACH IT HAS 100 OUTPATIENT CENTERS IN 33 STATES REVENUE IS RUNNING ABOUT 100 MILLION A YEAR BUT MR EPPERSON SEES POTENTIAL FOR FAR MORE HE SAYS WORKERS' COMPENSATION COSTS FOR PHYSICAL REHABILITATION COME TO ABOUT 16 BILLION A YEAR AT THE MOMENT MR EPPERSON SAYS INVESTORS ARE TERRIFIED OF ALL HEALTHCARE STOCKS BECAUSE PRESIDENT CLINTON HAS PROMISED TO SHAKE UP THE NATION'S HEALTHCARE SYSTEM AS RECENTLY AS DECEMBER NATIONAL REHABILITATION STOCK TRADED AT 1650 A SHARE YESTERDAY IT WAS TRADING AT 1075 BUT FAIRLY SOON WE'RE GOING TO HAVE THE HEALTHCARE THING SORTED OUT HE PREDICTS PEOPLE ARE GOING TO REALIZE THAT THERE ARE WINNERS AS WELL AS LOSERS HE ESTIMATES THAT NATIONAL REHABILITATION WILL CHALK UP OPERATING EARNINGS OF 85 CENTS A SHARE THIS YEAR ABOUT 55 CENTS IN REPORTED EARNINGS AFTER DEDUCTING COSTS FOR THE RECENT ACQUISITION OF ITS BIGGEST COMPETITOR HEALTH FOCUS INC FOR 1994 HE THINKS IT WILL REPORT 112 A SHARE BY LATE THIS YEAR HE SAYS THE STOCK SHOULD BE BACK IN THE RANGE OF 14 TO 16 SALLY ANDERSON A PORTFOLIO MANAGER WITH KOPP INVESTMENT ADVISORS IN EDINA MINN CONTRIBUTED A 343 GAIN IN TELLABS INC TO THE PROS' CAUSE LAST TIME HER NEW SELECTION IS DIGITAL MICROWAVE CORP A SAN JOSE CALIF MAKER OF MICROWAVE RADIO EQUIPMENT THAT IS USED IN CELLULARTELEPHONE SYSTEMS AND OTHER COMMUNICATIONS SYSTEMS NEW MANAGEMENT HAS REALLY TURNED THIS COMPANY AROUND MS ANDERSON SAYS IN HER VIEW MICHAEL MICHIGAMI CHIEF EXECUTIVE OFFICER HAS A REAL TAKECHARGE APPROACH AMONG OTHER THINGS SHE SAYS HE HAS IMPROVED THE EFFICIENCY OF THE MANUFACTURING PROCESS CUT THE HEAD COUNT 10 AND REDUCED PAY ABOUT 10 FOR THE REMAINING EMPLOYEES MS ANDERSON ESTIMATES DIGITAL MICROWAVE HAD A LOSS OF 56 CENTS TO 60 CENTS A SHARE IN THE FISCAL YEAR THAT ENDED WEDNESDAY ON REVENUE OF 105 MILLION TO 110 MILLION BUT THE COMPANY WAS PROFITABLE IN THE MARCH QUARTER SHE SAYS AND SHE ESTIMATES IT CAN EARN ABOUT 50 CENTS A SHARE IN THE CURRENT FISCAL YEAR WE THINK THERE ARE SOME WONDERFUL OPPORTUNITIES IN THE WIRELESS COMMUNICATIONS AREA PARTICULARLY ABROAD MS ANDERSON SAYS DIGITAL MICROWAVE HAS WON CONTRACTS RECENTLY IN THAILAND AND NEW ZEALAND AND SHE SAYS THE COMPANY HAS A DECENT SHOT AT A BIG CELLULAR CONTRACT COMING UP IN GERMANY DIGITAL GETS ABOUT 40 OF ITS REVENUE OVERSEAS SHARES IN DIGITAL MICROWAVE TRADED YESTERDAY AT 1150 IN THE OVERTHECOUNTER MARKET MS ANDERSON'S TARGET IS THE MID TO UPPER TEENS OVER THE NEXT YEAR OR SO TWO NEW CONTESTANTS BATLE THE DARTS JAMES COLLINS HEADS INSIGHT CAPITAL RESEARCH & MANAGEMENT INC IN MORAGA CALIF HE ALSO EDITS THE NEWSLETTER OTC INSIGHT SCOTT M KRANTZ IS PRESIDENT OF SCOTT M KRANTZ ASSOCIATES A MONEYMANAGEMENT FIRM IN NORTHBROOK ILL MR COLLINS LIKES SYNOPTICS COMMUNICATIONS INC A SANTA CLARA CALIF COMPANY THAT PRODUCES INTELLIGENT HUBS FOR LOCAL AREA NETWORK OR LAN COMPUTER SYSTEMS UNDER THE TRADE NAME LATTICE NET INNOVATION IS THE KEY TO THRIVING IN THE LAN BUSINESS MR COLLINS SAYS AND SYNOPTICS HAS A KNACK FOR IT IT INTRODUCED 25 NEW PRODUCTS LAST YEAR AND GOT 60 OF ITS REVENUE FROM NEW PRODUCTS IT SPENDS A TOWERING 11 OF REVENUE ON RESEARCH AND DEVELOPMENT SYNOPTICS' SALES LEAPED 57 LAST YEAR TO 3888 MILLION WHILE EARNINGS ZOOMED 51 TO 199 A SHARE DEBT IS LESS THAN 1 OF CAPITAL OF COURSE THE STOCK IS HIGHPRICED YESTERDAY IT FETCHED 9350 A SHARE IN OVERTHECOUNTER TRADING THAT IS 46 TIMES THE PAST 12 MONTHS' EARNINGS AN EXTREMELY HIGH MULTIPLE BUT MR COLLINS ISN'T FAZED HE EXPECTS SYNOPTICS TO EARN 355 A SHARE THIS YEAR AND 450 IN 1994 MR KRANTZ RECOMMENDS WYLE LABORATORIES OF EL SEGUNDO CALIF WYLE GETS MOST OF ITS REVENUE FROM DISTRIBUTING SEMICONDUCTORS AND COMPUTER PARTS IT ALSO DOES TESTING AND ENGINEERING WORK FOR THE NUCLEARPOWER INDUSTRY DEFENSE CONTRACTORS AND AEROSPACE FIRMS IT'S A SMART LITTLE COMPANY SAYS MR KRANTZ SALES ARE UP SEVEN STRAIGHT YEARS TO 5415 MILLION IN THE YEAR ENDED JAN 31 THE EARNINGS HISTORY IS SIMILARLY GOOD EXCEPT FOR A BLIP IN 1991 AND HE SAYS WYLE STOCK IS A BARGAIN IT WAS UNCHANGED YESTERDAY AT 1650 ON THE NEW YORK STOCK EXCHANGE THAT IS LESS THAN 13 TIMES THE 133 IN PERSHARE EARNINGS WYLE POSTED FOR THE FISCAL YEAR JUST ENDED WHY THE BARGAIN PRICE MR KRANTZ FIGURES INVESTORS ARE SCARED OF THE DEFENSE AND NUCLEAR POWER INDUSTRIES BUT HE DOESN'T THINK EITHER INDUSTRY IS ABOUT TO FADE AWAY ANYWAY HE SAYS WYLE GETS 80 OF ITS REVENUE FROM ITS DISTRIBUTION BUSINESS IN THE COMING SIX MONTHS THE PROS' SELECTIONS WILL COMPETE AGAINST A DARTBOARD PORTFOLIO CONSISTING OF BRADLEY REAL ESTATE TRUST FISCHER IMAGING CORP JACKPOT ENTERPRISES INC AND O'BRIEN ENVIRONMENTAL ENERGY INC SERVICES/TRADELINE INC UP 364 WASHINGTON MUTUAL SAVINGS BANK UP 25 AVATAR HOLDINGS INC UP 1833 NETWORK GENERAL CORP DOWN 5 9304060023 930406 WHO'S NEWS DIGITAL EQUIPMENT COUNSEL MAYNARD MASS MARTIN F HOFFMANN DIGITAL EQUIPMENT CORP'S GENERAL COUNSEL AND A VICE PRESIDENT RESIGNED TO PURSUE OTHER INTERESTS THE COMPUTER MAKER SAID HE COULDN'T BE REACHED FOR COMMENT YESTERDAY DIGITAL NAMED THOMAS C SIEKMAN 51 YEARS OLD TO SUCCEED MR HOFFMANN MR SIEKMAN JOINED DIGITAL IN 1973 AS CORPORATE PATENT COUNSEL HE WAS NAMED A VICE PRESIDENT IN 1992 9304060022 930406 FORM + FUNCTION BY JOHN PIERSON HOW MUCH ARE PEOPLE WILLING TO PAY FOR QUALITY FOR YEARS ANYONE WANTING TO READ WHILE LYING DOWN HAS BEEN ABLE TO BUY AN INEXPENSIVE DEVICE TO HELP BUT MOST OF THE PRODUCTS WERE DESIGNED FOR DISABLED PEOPLE AND NONE OF THE READING AIDS HAVE FIGURED OUT HOW TO SUSPEND A BOOK FIRMLY ENOUGH NOT TO FALL BUT LOOSELY ENOUGH TO ALLOW PAGE TURNING NOW COMES RICK HOWELL STOWE VT WITH A BOOK HOLDER THAT IS GOODLOOKING FUNCTIONAL AND DESIGNED FOR EVERYONE BUT IT'S ALSO EXPENSIVE THE HOWELL BOOK HOLDER HAS A WOODEN FRAME OF WHITE ASH YOU STRAP YOUR BOOK COVER TO THE EASEL AND LOCK A PIECE OF PLEXIGLASS AGAINST THE PAGES TO TURN A PAGE YOU UNLOCK THE PLEXIGLASS AND PULL IT TOWARD YOU USERS SAY TURNING PAGES IS EASIER THAN IT MIGHT SEEM THE FIRST TIME IT'S A LITTLE CLUMSY SAYS DAVE ARNOLD PRESIDENT OF SOFTDESK A SOFTWARE FIRM IN HENNIKER NH WITHIN A COUPLE OF PAGES IT'S MINDLESS ZIP ZIP FLIP THE PAGE BUT IF YOU AREN'T DISABLED WHY LIE DOWN OR LEAN BACK TO READ MR HOWELL ARGUES THAT SLOUCHING OVER A BOOK IS BAD FOR PEOPLE MALCOLM POPE A PROFESSOR OF MUSCULOSKELETAL RESEARCH AT THE UNIVERSITY OF VERMONT AGREES HE SAYS THE HOWELL BOOK HOLDER MINIMIZES STRAIN ON THE NECK AND UPPER BACK MR HOWELL CONCEDES THAT HIS PLEXIGLASS CAN PRODUCE GLARE AND THAT AT 299 HIS BOOK HOLDER ISN'T FOR EVERYBODY THAT JUDGMENT IS ECHOED BY STEVEN LEVEEN PRESIDENT OF LEVENGER DELRAY BEACH FLA A CATALOG COMPANY THAT SELLS TOOLS FOR SERIOUS READERS INCLUDING THE READER'S TABLE WHICH HOLDS A BOOK FOR HANDSFREE LAPLEVEL READING MR LEVEEN SAYS HE IS LOOKING FOR A BOOK HOLDER LIKE MR HOWELL'S BUT PRICED SIGNIFICANTLY UNDER 100 MADDAK PEQUANNOCK NJ SELLS AIDS FOR THE DISABLED THESE INCLUDE A BED READER 197 WHERE THE BOOK RESTS ON TOP OF PLEXIGLASS AND MUST BE PICKED UP TO TURN A PAGE MICHAEL LOCARNO PRODUCT DESIGN MANAGER SAYS HE HOPES TO COLLABORATE WITH MR HOWELL ON A MORE ECONOMICAL VERSION OF THE HOWELL HOLDER RICHARD STEWART MIDDLEBURY CONN RETIRED PRESIDENT OF AMERICAN BRASS SAYS HE IS WORKING ON A DEVICE THAT WOULD LET YOU READ WHILE LYING ON YOUR SIDE PROPOSED PRICE 20 RICK HOWELL SAYS THERE'S METHOD IN HIS PRICINESS HE SAYS HE HOPES TO TAP A SMALL HIGHEND MARKET AND RETAIN ENOUGH EARNINGS TO TOOL UP FOR A LOWERCOST VERSION THIS GASOLINE PUMP WANTS TO SELL LESS FUEL GREGORY TEW HAS DESIGNED A GAS PUMP THAT WOULDN'T DISPENSE FUEL UNTIL A CAR'S TIRES WERE PROPERLY INFLATED WOULD PROVIDE EACH CAR WITH JUST THE RIGHT OCTANE RATING AND WOULD CHARGE GASGUZZLING CARS AN EXTRA TAX ON THEIR FUEL SMART PUMP WOULD FIGURE OUT ALL THESE THINGS FROM READING BARCODED LABELS THAT CARS WOULD BEAR CONTAINING INFORMATION ON THINGS LIKE GAS MILEAGE MR TEW A PROFESSOR OF DESIGN AT MONTANA STATE UNIVERSITY BOZEMAN SAYS THAT IN ENCOURAGING CONSERVATION THE PUMP COULD SUPPLANT THE EXISTING CORPORATE AVERAGE FUEL ECONOMY STANDARDS AND THE GASGUZZLER TAX NOW PAID WHEN A CAR IS PURCHASED MR TEW SAYS ABOLISHING THE BUREAUCRACIES THAT ADMINISTER THOSE TWO LAWS COULD PAY FOR THE NEW PUMPS WHICH WOULD COST AT LEAST TWO OR THREE TIMES TODAY'S PUMPS BILL NOACK A GENERAL MOTORS SPOKESMAN CALLS MR TEW'S IDEA FOOD FOR THOUGHT BUT ADDS THAT SMART PUMP COULD IMPOSE A DRACONIAN TAX ON FAMILYSIZE CARS MR TEW REPLIES THAT PLENTY OF FAMILY CARS ARE FUELEFFICIENT AND WOULDN'T PAY MORE AT SMART PUMP IN THE BRAVE NEW WORLD OF CLERKLESS SHOPPING SIGNS ARE GETTING CLEARER STORES ARE MORE INTO SELFSERVICE SO A SIGN HAS TO CONVEY VALUE BENEFITS PRICE EVERYTHING SAYS JANET GROEBER EDITOR OF VM&SD A MAGAZINE OF STORE DISPLAY RETAIL CONSULTANT SONJA LARSEN OF BRAINERD LAKES MINN ADDS FEWER AND FEWER PEOPLE ENJOY SHOPPING THESE DAYS YOU NEED A VERY CLEAR SIGN SO THEY CAN QUICKLY FIND SOMETHING THE NEED FOR CLARITY AND INFORMATION MAY DOOM THOSE FRIENDLY HANDLETTERED SIGNS STILL SEEN AT SOME CORNER DELIS FOR THE TWOWORKER FAMILY THAT WANTS TO SHOP EASILY AND QUICKLY HAND LETTERING LOOKS MORE SLOPPY THAN FRIENDLY SAYS GL HOFFMAN PRESIDENT OF INSIGNIA SYSTEMS MINNETONKA MINN WHICH SELLS A SIGN MAKER CALLED IMPULSE IMPULSE LOOKS LIKE AN ELECTRONIC TYPEWRITER BUT IS DEDICATED TO TURNING OUT LETTERPERFECT SIGNS A STORE BUYS ONE OR MORE TYPEFACE CARTRIDGES AND A PREPACKAGED SIGN CARTRIDGE FOR ITS KIND OF BUSINESS SUCH AS GROCERY HARDWARE DRUG OR CLOTHING MR HOFFMAN SAYS HE HAS SOLD MORE THAN 8000 IMPULSE SYSTEMS MAINLY TO SINGLE STORES AND SMALL CHAINS HE SEES IMPULSE FITTING BETWEEN THE BIG CHAINS WHICH USE EXPENSIVE CENTRALIZED PRINT SHOPS AND MOMANDPOP STORES MANY OF WHICH CONTINUE DOING SIGNS BY HAND ONE IMPULSE USER IS THE IGA SUPERMARKET IN COVINGTON IND MANAGER SCOTT WOODARD SAYS THAT IN A TEST SALES OF ITEMS MARKED WITH IMPULSE SIGNS ESCALATED WAY ABOVE SALES OF THE SAME ITEMS WITHOUT SIGNS OR WITH HANDDONE SIGNS ONE OF MR HOFFMAN'S COMPETITORS THINKS IMPULSE MAY BE TOO SINGLEMINDED FOR MANY STORES REYNOLDS GROUP IN CITY OF INDUSTRY CALIF SELLS COMPUTER SOFTWARE FOR MAKING SIGNS CHIEF EXECUTIVE THOMAS REYNOLDS SAYS COMPUTERPRODUCED SIGNS ALLOW MORE FLEXIBILITY 9304060021 930406 REVIEW & OUTLOOK EDITORIAL HORSE FEATHERS THE DIFFERENCE BETWEEN A HORSE AND A BRITISH CITIZEN IS THAT HORSES LIKE TO COME IN OUT OF THE RAIN WHILE THE BRITISH LIKE TO STAND AROUND IN THE RAIN TELLING EACH OTHER THAT THEIR COUNTRY HAS BECOME A DISORGANIZED MESS AMPLE OPPORTUNITY FOR THIS PASTIME PRESENTED ITSELF ON SATURDAY WHEN THE GRAND NATIONAL THE GREATEST STEEPLECHASE EVENT IN THE WORLD WAS CANCELED AFTER IT HAD STARTED IT WAS ROUGHLY SPEAKING EQUIVALENT TO CANCELING THE KENTUCKY DERBY AFTER TWO FALSE STARTS NATIONAL DISASTER WAS HOW THE SUNDAY TIMES LABELED THE EVENT NATIONAL DISGRACE ROARED THE NEWS OF THE WORLD HERE ALAS IS WHAT HAPPENED FIRST THERE WERE THE ANIMAL RIGHTS PROTESTERS TO DELAY THE START THEN THERE WAS A FALSE START CAUSING THE 39 HORSES IN THE RACE TO START AGAIN THEN THERE WAS ANOTHER FALSE START BUT ONLY NINE HORSES STOPPED RUNNING SOME BECAUSE THEY WERE TANGLED IN THE STARTING TAPE THE REST HOOFED IT AROUND SOME PART OF THE COURSE AND FIVE FINISHED AFTER A LOT OF SCREAMING AND CRYING THE RACE WAS DECLARED VOID BOOKMAKERS WILL HAVE TO RETURN THE 75 MILLION POUNDS THAT HAD BEEN WAGERED ON THE RACE TENS OF MILLIONS OF TELEVISION VIEWERS AROUND THE WORLD WERE SPARED JUST ANOTHER HORSE RACE AND WILL NOW BE ABLE TO TELL THEIR GRANDCHILDREN THEY WITNESSED AN HISTORIC FIASCO MEANWHILE AT PUBS ALL AROUND THE COUNTRY BRITISH MEN AND WOMEN CAN DRINK DEEP FROM THAT SWEET DRAFT CALLED RECRIMINATION THE MOST OFTQUOTED RESPONSE WAS FROM AN IRISH HORSE TRAINER JOHN UPSON IT WOULDN'T HAPPEN IN A POINT TO POINT IN A LITTLE COUNTRY LIKE IRELAND WHEN AN ENGLISHMAN IS RUNNING DOWN HIS COUNTRY IT IS NOT ENOUGH FOR HIM TO BELIEVE THAT HIS NATION DOES SOMETHING BADLY HE MUST ALSO BELIEVE THAT EVERYBODY ELSE WOULD DO IT BETTER AS USUAL IN BRITAIN THERE IS A CONFLICT BETWEEN TRADITIONAL PRACTICE AND MODERN PRESSURES BY TRADITION HORSES START THE RACE BEHIND A TAPE RATHER THAN IN GATES WITH 39 HORSES IN THE RACE THE TAPE WAS NEARLY 100 METERS LONG THERE IS BUT ONE FELLOW DOWN THE COURSE TO SIGNAL A FALSE START HE WATCHES FOR A RED FLAG AT THE FRONT OF THE RACE BEFORE HE SIGNALS A FLAG THAT GOT TANGLED THE SECOND TRY IN LESS ORGANIZED ERAS IT WOULD HAVE BEEN SIMPLY GOOD ENOUGH TO GET THE HORSES IN THE SAME GENERAL AREA BEFORE STARTING THE RACE AS LATE AS 1951 THE RACE WAS STARTED WITH MANY OF THE HORSES FACING IN THE WRONG DIRECTION AND NOBODY CALLED A FALSE START PEOPLE IN THOSE DAYS WEREN'T USED TO SPLITSECOND ACCURACY TODAY STANDARDS ARE DIFFERENT THERE ARE SPORTS SUCH AS THE BOBSLED IN WHICH THE MARGIN OF VICTORY IS MEASURED IN THE HUNDREDTHS OF SECONDS PEOPLE WANT HORSE RACING PRECISELY ORGANIZED THE TAPE METHOD ISN'T UP TO THE NEW STANDARDS FOR OUR PART WE WONDERED WHAT THE HORSES MIGHT MAKE OF IT ALL IF ASKED WE SUSPECT IN A SWIFTIAN VEIN THEY MIGHT SAY THIS WELL YOU HAVE BEEN STANDING AROUND IN THE RAIN WITH A NERVOUS JOCKEY ON YOUR BACK FOR 30 MINUTES WHILE SOME LUNATICS CLAIMING TO BE ANIMAL RIGHTS ACTIVISTS PREVENT YOU FROM GETTING BACK TO THE COMFORTABLE STABLE THEN YOU ARE BUNCHED IN FRONT OF A LONG TAPE AND FORCED TO SPRINT LIKE MANIACS TOWARD A MONSTROUSLY HUGE HEDGE THAT YOU WILL PROBABLY FALL OVER POSSIBLY BREAKING YOUR LEGS AND CAUSING YOUR OWNER TO PUT A BULLET IN YOUR HEAD BUT JUST AS YOU ARE APPROACHING THE HEDGE A BLOKE WITH A RED FLAG TELLS YOU TO RETURN TO THE STARTING SCRUM TO STAND AROUND BEFORE BEGINNING AGAIN FINALLY YOU ARE OFF A SECOND TIME AND JUST AS YOU ARE SPRINTING TOWARD THAT IMPOSSIBLY HIGH HEDGE THERE ARE PEOPLE ONCE AGAIN TELLING YOU TO TURN AROUND TO MILL ABOUT WITH THIS INCREASINGLY HEAVY AND NERVOUS JOCKEY ON YOUR BACK BEFORE DOING IT AGAIN ARE YOU GOING TO STOP TO DO THE THING OVER OR ARE YOU GOING TO KEEP ON RUNNING STRAIGHT BACK TO THE STABLE THERE IS AN EXPRESSION IN THE ENGLISH LANGUAGE HORSE SENSE DENOTING SOMEONE WITH A FIRM GRASP OF REALITY BUT THERE IS NO EXPRESSION HORSERACINGOFFICIAL SENSE BECAUSE SUCH A CONCEPT WOULD BE RIDICULOUS NO DOUBT THERE WILL BE AN INQUIRY AND RESIGNATIONS BUT WE PREFER TO LOOK ON THE HAPPY SIDE AND SEE THIS YEAR'S GRAND NATIONAL AS A TRIUMPH OF HORSES OUTSMARTING RACE OFFICIALS OF COURSE THAT'S NOT SUCH A GREAT ACHIEVEMENT 9304060020 930406 INTERNATIONAL BRIEF BENGUET CORP PHILIPPINE MINING CONCERN DEFAULTS ON DEBT PAYMENTS BENGUET CORP A PHILIPPINE MINING COMPANY DECLARED A MORATORIUM ON REPAYMENT OF LOANS TO CONSERVE CASH PUTTING THE COMPANY IN DEFAULT REGARDING BANK LOANS AND LONGTERM DEBT THE COMPANY SAID IT HOPES TO RENEGOTIATE THE TERMS OF THE LOAN AGREEMENT ADDING THAT IT WILL HAVE A RESTRUCTURING PLAN TO PRESENT TO CREDITORS BY THE END OF THE MONTH BENGUET SAID IT CALLED THE MORATORIUM AFTER ONE OF ITS CREDITOR BANKS IN MARCH DIDN'T RENEW A CREDIT FACILITY THE COMPANY ALSO REPORTED THAT FOR THE FOURTH QUARTER IT SHOWED A LOSS OF 199 MILLION WIDENING FROM A YEAREARLIER LOSS OF 19 MILLION THE FOURTHQUARTER FIGURE INCLUDES 184 MILLION IN PROVISIONS FOR LOSSES FROM UNRECOVERED CAPITAL DEVELOPMENT COSTS OF SUSPENDED MINING OPERATIONS THE COMPANY ALSO SAID IT WOULDN'T PAY A DIVIDEND FOR 1992 REVENUE FELL TO 284 MILLION FROM 324 MILLION THE COMPANY SAID IT SUSPENDED SOME GOLDMINING OPERATIONS TO AVOID FURTHER LOSSES BECAUSE OF THE LOW PRICE OF GOLD AND THE UNFAVORABLE EXCHANGE RATE CAUSED BY APPRECIATION OF THE PHILIPPINE PESO 9304060019 930406 MARKETING & MEDIA IN SUITS HOME SHOPPING VENDORS ALLEGE UNNAMED EXECUTIVES WERE PAID BRIBES BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TWO VENDORS TO HOME SHOPPING NETWORK INC HAVE ALLEGED IN RECENT LAWSUITS THAT UNSPECIFIED TOP EXECUTIVES AND AT LEAST ONE EMPLOYEE OF THE COMPANY WERE PAID BRIBES FOR FUNNELING BUSINESS TO SUPPLIERS THE ACCUSATIONS ARE THE LATEST IN A SERIES OF ALLEGED FINANCIAL MISDEEDS SAID TO HAVE BEEN COMMITTED BY HOME SHOPPING'S CHAIRMAN ROY SPEER AND BY ITS FORMER PRESIDENT AND COFOUNDER LOWELL PAXSON AMONG OTHERS A FEDERAL GRAND JURY IN TAMPA FLA IS INVESTIGATING THE ALLEGATIONS INVOLVING THE COMPANY MEANWHILE THE CONTROVERSY HAS CAST A CLOUD OF UNCERTAINTY OVER THE PROPOSED TRANSACTION BY LIBERTY MEDIA CORP TO ACQUIRE THE SHARES OUTSTANDING OF HOME SHOPPING LIBERTY A SPINOFF OF CABLETELEVISION GIANT TELECOMMUNICATIONS INC ACQUIRED VOTING CONTROL OF THE COMPANY FROM MR SPEER IN DECEMBER THE LATEST ALLEGATIONS CONCERNING HOME SHOPPING WERE RAISED IN A LAWSUIT INVOLVING A DISPUTE BETWEEN TWO OF HOME SHOPPING'S JEWELRY VENDORS IN THE SUIT FILED IN US DISTRICT COURT IN TAMPA IN FEBRUARY FIOR INDUSTRIES INC OF DADE COUNTY FLA ACCUSED LEACH & GARNER CO OF ATTLEBORO MASS OF CAUSING HOME SHOPPING TO BREAK A 10 MILLION 1991 CONTRACT WITH FIOR THE LAWSUIT ALLEGED THAT LEACH & GARNER SUBSEQUENTLY BEGAN SUPPLYING JEWELRY TO HOME SHOPPING TO WOO THE BUSINESS AWAY FROM FIOR THE SUIT CHARGED LEACH & GARNER AND RELATED PARTIES PAID IMPROPER COMPENSATION TO EXECUTIVES AND EMPLOYEES OF HOME SHOPPING THE SUIT ALLEGED THAT THE FUNNEL OF CASH PAYMENTS TO JOHN DOE EMPLOYEES OF HOME SHOPPING NETWORK WAS DISGUISED AS COMMISSIONS THE COMMISSIONS WERE PAID FIRST TO A SHELL COMPANY SET UP BY LEACH & GARNER WHICH CONVERTED THEM TO CASH FOR REPAYMENT TO THE HOME SHOPPING EMPLOYEES FIOR ALLEGED IN ITS SUIT MOREOVER OTHER FORMS OF PAYMENTS WERE PAID TO HOME SHOPPING EMPLOYEES WHO ALSO RECEIVED GIFTS FROM THE SHELL COMPANY THE SUIT ALLEGED THE ACTIONS AMOUNTED TO COMMERCIAL BRIBERY THE SUIT CHARGED OFFICIALS OF FIOR WEREN'T AVAILABLE FOR COMMENT AND ITS LAWYER DIDN'T RESPOND TO CALLS SEEKING COMMENT IN ATTLEBORO MARK BUCKLEY LEACH & GARNER'S CHIEF FINANCIAL OFFICER CALLED THE SUIT FRIVOLOUS A HOME SHOPPING SPOKESWOMAN SAID THE COMPANY HAS ASKED FIOR FOR THE FACTS THAT SUPPORT THE ALLEGATIONS BUT HASN'T RECEIVED A RESPONSE IN A SEPARATE LAWSUIT FILED IN STATE COURT IN DADE COUNTY FLA A COSMETIC SUPPLIER MARCO MONACI INC ALLEGED THAT A HOME SHOPPING EMPLOYEE PHILIP KOPLIN WAS PAID 19000 AS A BRIBE TO INDUCE HOME SHOPPING TO BUY GOODS FROM THE SUPPLIER THE LAWSUIT DOESN'T NAME EITHER HOME SHOPPING OR MR KOPLIN AS DEFENDANTS AND INSTEAD IS A DISPUTE BETWEEN THE COOWNERS OF THE COSMETIC CONCERN THE SUIT CHARGES THAT MR KOPLIN WAS TO HAVE RECEIVED ABOUT 157000 AS A BRIBE BUT THAT ONE OF THE COOWNERS MICHAEL GIARDINA ACTUALLY POCKETED MOST OF THE MONEY NEITHER MR GIARDINA NOR HIS ATTORNEY RESPONDED TO MESSAGES LEFT AT HIS OFFICE IN AN INTERVIEW MR KOPLIN DENIED ANY WRONGDOING AND SAID HE HAD BEEN FIRED BY HOME SHOPPING THE HOME SHOPPING SPOKESWOMAN SAID SHE WAS UNAWARE OF THE CASE AS REPORTED ALLEGATIONS OF FINANCIAL MISDEEDS BY HOME SHOPPING'S CHAIRMAN AND ITS FORMER PRESIDENT ALSO HAVE BEEN RAISED IN A LAWSUIT FILED LAST WEEK BY HOME SHOPPING'S FORMER GENERAL COUNSEL ALLEN P ALLWEISS EARLIER SUCH ACCUSATIONS SURFACED IN A BITTER DIVORCE CASE BETWEEN MR ALLWEISS'S PREDECESSOR FERNANDO DIFILIPPO AND HIS WIFE THE TARGETS OF THE ALLEGATIONS MESSRS SPEER AND PAXSON HOWEVER HAVE VIGOROUSLY DENIED THEM IN PUBLISHED REPORTS 9304060018 930406 LAWYER URGES SEC TO LIFT SUSPENSION OF MEYER BLINDER BUT JAILED PENNYSTOCK KING IS STILL BARRED PERMANENTLY BY HIS CRIMINAL SENTENCE BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HERE'S SECURITIES LAWYER ARTHUR MATHEWS DESCRIBING HIS LONGTIME CLIENT DEPOSED PENNYSTOCK KING MEYER BLINDER HE'S ALMOST 75 YEARS OLD HE'S HAD A QUADRUPLE BYPASS HE'S BLIND IN ONE EYE AND WITH AT LEAST THREE YEARS TO GO IN MR BLINDER'S 46MONTH FEDERAL PRISON TERM HE'LL BE LUCKY IF HE EVER GETS OUT OF JAIL MR MATHEWS SAYS SO YOU WOULD THINK MR BLINDER HAS ENOUGH TO WORRY ABOUT BUT THERE WAS MR MATHEWS STANDING BEFORE THE SECURITIES AND EXCHANGE COMMISSION ARGUING THAT THE COMMISSIONERS SHOULD OVERTURN MR BLINDER'S SUSPENSION FROM THE SECURITIES INDUSTRY NEVER MIND THAT MR BLINDER IS BARRED FROM THE INDUSTRY FOR LIFE UNDER THE CRIMINAL SENTENCE IMPOSED LAST FALL MR MATHEWS SAYS JUSTICE DEMANDS THAT THE SEC SUSPENSION BE OVERTURNED HE CONCEDES THAT A REVERSAL BY THE SEC WON'T CHANGE HIS CLIENT'S STATUS IN THE INDUSTRY HE'D STILL BE BANNED UNDER THE CRIMINAL SANCTION BUT MR MATHEWS SAYS IT WOULD RIGHT A PERCEIVED WRONG HE ALSO MENTIONS THAT HIS CLIENT IS STUBBORN THE SEC SUSPENSION WAS ORIGINALLY IMPOSED IN 1986 AFTER AN ADMINISTRATIVE LAW JUDGE DETERMINED THAT MR BLINDER HAD IMPROPERLY FAILED TO INFORM INVESTORS THAT HE AND HIS FIRM BLINDER ROBINSON & CO HAD BOUGHT UP ALMOST 10 OF THE STOCK IN THE INITIAL PUBLIC OFFERING OF AMERICAN LEISURE CORP THE OFFERING WAS MADE IN 1980 ABOUT THE TIME MR BLINDER'S DENVER PENNYSTOCK FIRM WAS REACHING ITS ZENITH A FEDERAL APPEALS COURT DISAGREED WITH SOME OF THE SEC PROCEDURES AND SENT THE CASE BACK TO THE COMMISSION AN ADMINISTRATIVE LAW JUDGE AT THE SEC RECONSIDERED THE EVIDENCE AND SUSPENDED MR BLINDER AGAIN IN 1990 MR BLINDER APPEALED MEANWHILE HE WAS INDICTED CONVICTED AND SENTENCED FOR RACKETEERING CONSPIRACY AND SECURITIES FRAUD IN A SCHEME SPANNING NEARLY 3 1/2 YEARS THAT'S PART OF THE REASON SEC LAWYER THOMAS CARTER OF DENVER URGED THE COMMISSIONERS TO DISALLOW ANY EVIDENCE ABOUT MR BLINDER'S PURPORTED REHABILITATION OPENING THE CASE TO SUCH EVIDENCE MR CARTER CONTENDED WOULD MAKE THE LITIGATION UNENDING COMMISSIONER RICHARD ROBERTS INTERJECTED ARE YOU SUGGESTING THAT THIS LITIGATION ISN'T ALREADY UNENDING UNENDING OR NOT THE BLINDER CASE HAS CERTAINLY ACCOUNTED FOR A GOOD PORTION OF MR MATHEWS'S TIME A FORMER SEC STAFFER MR MATHEWS NOTED YESTERDAY THAT HE HAD BEEN ARGUING CASES BEFORE THE SEC SINCE 1962 ABOUT A THIRD OF THAT TIME OR AT LEAST SEVEN YEARS HAS BEEN SPENT ON MATTERS RELATED TO MR BLINDER PERHAPS MR MATHEWS HAD THAT IN MIND WHEN HE OFFERED A SOLUTION THE COMMISSIONERS SHOULD DISMISS THE CASE OUTRIGHT YOU SHOULD GET RID OF THIS CASE HE SAID YOU SHOULDN'T WASTE ANY TIME 9304060017 930406 THREE TIRE MAKERS TO INCREASE PRICES OF REPLACEMENTS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THREE OF THE NATION'S LARGEST TIRE COMPANIES SAID THEY WILL RAISE PRICES AT LEAST 3 ON REPLACEMENT TIRES IN COMING MONTHS CITING HIGHER RAW MATERIAL AND LABORRELATED COSTS BUT ANALYSTS DON'T EXPECT THE FULL PRICE INCREASES TO STICK BECAUSE OF FLAT REPLACEMENTTIRE SALES SO FAR THIS YEAR MOREOVER THEY AND DEALERS NOTE THAT TWO PRICE INCREASES LAST YEAR ONE FOR 3 TO 5 AND ANOTHER FOR 35 WERE DISCOUNTED BY A SERIES OF TIREMAKER SPONSORED PROMOTIONS AND SPECIALS I QUESTION WHETHER IT WILL HOLD SAID JOE DEPAOLIS PRESIDENT OF JOHNNY ANTONELLI TIRE CO A ROCHESTER NY CHAIN OF 27 TIRE OUTLETS GOODYEAR TIRE & RUBBER CO THE NATION'S BIGGEST TIRE MAKER TOLD ITS DEALERS RECENTLY THAT IT WOULD RAISE PRICES ON MOST OF ITS REPLACEMENT TIRES AN AVERAGE 3 ON MAY 1 BRIDGESTONE/FIRESTONE INC A UNIT OF TOKYOBASED BRIDGESTONE CORP ANNOUNCED YESTERDAY IT WOULD INCREASE ITS PRICES 3 EFFECTIVE JUNE 1 ON SOME REPLACEMENT LINES AND GENERAL TIRE INC OWNED BY CONTINENTAL AG OF GERMANY SAID IT WILL INCREASE PRICES 3 TO 5 ON MAY 1 GROUPE MICHELIN'S US UNIT DECLINED TO COMMENT ON THE PRICE INCREASES AND COOPER TIRE & RUBBER CO SAID IT HAD NO ANNOUNCEMENT JEANCLAUDE GRUET AN ANALYST WITH UBS SECURITIES IN NEW YORK SAID THE ENVIRONMENT FOR A PRICE INCREASE ISN'T AS GOOD AS IT WAS LAST YEAR WHEN THE REPLACEMENTTIRE MARKET WAS RACKING UP HEALTHY GAINS MR DEPAOLIS WHO MAINLY SELLS GOODYEAR AND BRIDGESTONE/FIRESTONE TIRES SAID ECONOMIC UNCERTAINTY CONTINUES AMONG CONSUMERS BUT GOODYEAR WHILE CONCEDING THE REPLACEMENT MARKET HAS BEEN FLAT COMPARED WITH 1992'S LAST HALF SAID DEMAND IS EXCEEDING SUPPLY FOR ITS TIRES 9304060015 930406 TECHNOLOGY KRONOS AND ADP SIGN ACCORD WALTHAM MASS KRONOS INC SAID IT SIGNED AN AGREEMENT WITH AUTOMATIC DATA PROCESSING INC OF ROSELAND NJ IN WHICH ADP WILL MARKET A PROPRIETARY VERSION OF KRONOS'S PERSONAL COMPUTERBASED TIME AND ATTENDANCE SOFTWARE TOGETHER WITH KRONOSBUILT DATA COLLECTION TERMINALS KRONOS SAID THE PRODUCT TO BE CALLED TOTAL TIME WILL BE OFFERED TO BOTH NEW AND EXISTING ADP CLIENTS 9304060014 930406 UNIT OF MECHANICAL TECHNOLOGY PLEADS GUILTY TO FRAUD CHARGES TRENTON NJ A SUBSIDIARY OF MECHANICAL TECHNOLOGY INC AS EXPECTED PLEADED GUILTY TO FEDERAL CHARGES IN CONNECTION WITH THE SALE OF DEFECTIVE MISSILE LAUNCHERS TO THE US MILITARY THE UNIT OF THE DEFENSE CONTRACTOR UNITED TELECONTROL ELECTRONICS INC PLEADED GUILTY TO CONSPIRACY AND MAIL FRAUD CHARGES RELATED TO A 1984 CONTRACT TO PRODUCE LAUNCHERS FOR THE AIR FORCE'S MAVERICK MISSILE THE US ATTORNEY'S OFFICE SAID THE UNIT IN ASBURY PARK NJ HAS PROVIDED MORE THAN 6000 LAUNCHERS TO THE GOVERNMENT AT A COST OF 48 MILLION THE US ATTORNEY'S OFFICE HERE SAID THE UNIT FACES A MAXIMUM OF FIVE YEARS PROBATION AND 1 MILLION IN FINES THE US ATTORNEY'S OFFICE SAID SENTENCING IS SCHEDULED FOR JUNE 21 BEFORE US DISTRICT JUDGE GARRETT E BROWN MICHAEL HIMMEL AN ATTORNEY FOR MECHANICAL TECHNOLOGY CONFIRMED THE GUILTY PLEA HE SAID THE COMPANY ESTABLISHED A RESERVE TO PAY THE FINE HE DIDN'T KNOW THE AMOUNT OF THE RESERVE BUT ADDED WHILE THE MAXIMUM EXPOSURE TO THE COMPANY IS 1 MILLION WE ARE SOMEWHAT OPTIMISTIC WE WILL BE FINED A LESSER AMOUNT MECHANICAL TECHNOLOGY LATHAM NY IN FEBRUARY ANNOUNCED A PLEA AGREEMENT THE UNIT HAD REACHED WITH FEDERAL PROSECUTORS IT SAID THEN THAT THE PROBLEMS UNDER INVESTIGATION BEGAN BEFORE IT HAD ACQUIRED UNITED TELECONTROL IN 1987 AND THAT IT WAS UNAWARE OF THE PROBLEMS UNTIL IT WAS NOTIFIED BY THE DEFENSE DEPARTMENT OF AN INVESTIGATION IT SAID IT HAS COOPERATED WITH FEDERAL AUTHORITIES AND HAS MADE CHANGES AT THE UNIT THAT BRING IT INTO COMPLIANCE WITH DEFENSE DEPARTMENT REQUIREMENTS MECHANICAL TECHNOLOGY SHARES FELL 75 CENTS YESTERDAY CLOSING AT 150 A SHARE IN NATIONAL OVERTHECOUNTER TRADING 9304060013 930406 WHO'S NEWS MEAD CORP MEAD CORP DAYTON OHIO RODNEY L EVERHART 50 YEARS OLD CORPORATE CONTROLLER AND ACTING PRESIDENT OF THIS COMPANY'S MEAD DATA CENTRAL UNIT SINCE NOVEMBER WAS NAMED PRESIDENT OF THE UNIT MEAD IS A FOREST PRODUCTS AND ELECTRONIC PUBLISHING CONCERN 9304060012 930406 F&C INTERNATIONAL STOCK DROPS 50 EXCHAIRMAN SUED BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL F&C INTERNATIONAL INC STOCK TUMBLED 50 YESTERDAY AFTER IT SUED ITS DEPOSED CHAIRMAN FOR ALLEGEDLY FORMING A MARGIN INCREASE TEAM AND ORDERING IT TO MANIPULATE INVENTORY AND SALES FIGURES THEREBY INFLATING COMPANY PROFIT IN NATIONAL OVERTHECOUNTER TRADING STOCK OF THE FLAVOR AND FRAGRANCE CONCERN CLOSED AT 225 A SHARE THE FORMER CHAIRMAN JON P FRIES WHO FOUNDED THE COMPANY IN 1986 WAS FIRED LATE FRIDAY ONE DAY AFTER A MEMBER OF THE ALLEGED TEAM TOLD THE BOARD OF THE ALLEGED MANIPULATIONS MR FRIES COULDN'T BE REACHED FOR COMMENT IN AN INTERVIEW F&C PRESIDENT AND CHIEF EXECUTIVE FLETCHER ANDERSON SAID F&C WILL RESTATE FISCAL 1991 EARNINGS FOR THE YEAR ENDED JUNE 30 1992 WITHIN SIX TO EIGHT WEEKS AFTER AUDITOR ARTHUR ANDERSEN & CO COMPLETES ITS INVESTIGATION MR FLETCHER CONFIRMED THAT THE SECURITIES AND EXCHANGE COMMISSION ENFORCEMENT DIVISION IS ALSO INVESTIGATING IN A LAWSUIT FILED MONDAY IN THE STATE COURT OF COMMON PLEAS HAMILTON COUNTY OHIO F&C ALLEGES THAT MR FRIES FORMED THE MARGIN INCREASE TEAM IN LATE 1991 SHORTLY BEFORE THE COMPANY WENT PUBLIC THE TEAM HAD FEWER THAN 10 EMPLOYEES INCLUDING ONE COMPANY OFFICER MR ANDERSON SAID HE DECLINED TO IDENTIFY THE OFFICER BUT HE SAID THE OFFICER IS NOT THE COMPANY'S CHIEF FINANCIAL OFFICER MR FRIES ALLEGEDLY TOLD THE TEAM TO FIND INVENTORY WHICH THEY ALLEGEDLY DID BY DILUTING AND RELABELING BARRELS OF PRODUCT IN CINCINNATI AND BROOKLYN NY THE LAWSUIT ALLEGES A COMPANY THAT OVERSTATES INVENTORY CAN MAKE ITSELF APPEAR TO HAVE A STRONGER BALANCE SHEET AND BY REDUCING COST OF GOODS SOLD STRONGER EARNINGS OVER THE WEEKEND F&C ANALYZED SUSPECTED BARRELS OF FLAVORS AND FRAGRANCES AND CONFIRMED THAT THEY WERE NOT THE VALUE THEY WERE ON THE BOOKS FOR MR ANDERSON SAID MR FRIES REMAINS IN HIS POST AS DIRECTOR UNDER OHIO STATE LAW HE CAN'T BE REMOVED FROM THAT POST UNTIL A MEETING OF SHAREHOLDERS THE NEXT ONE IS IN NOVEMBER F&C HAS BEEN UNABLE TO CONTACT MR FRIES SINCE FRIDAY MR ANDERSON SAID LAST NOVEMBER F&C SHAREHOLDERS SUED THE COMPANY IN CINCINNATI FEDERAL COURT FOR ALLEGEDLY MAKING MISLEADING POSITIVE STATEMENTS ABOUT EARNINGS BEFORE REPORTING LOSSES CAUSING THE COMPANY'S STOCK TO SLIDE A TRIAL DATE HASN'T BEEN SET FOR THAT CASE EXCLUDING RESTRUCTURING CHARGES F&C HAS BEEN REPORTING LOSSES SINCE ITS FIRST QUARTER ENDED SEPT 30 1992 FOR THE YEAR ENDED JUNE 30 1992 F&C REPORTED A NET LOSS OF 35 MILLION OR 43 CENTS A SHARE AFTER A PRETAX RESTRUCTURING CHARGE OF 35 MILLION SALES WERE 579 MILLION IN THE YEAREARLIER PERIOD THE COMPANY EARNED 3 MILLION OR 44 CENTS A SHARE ON SALES OF 469 MILLION 9304060011 930406 WHO'S NEWS DIED ELMER NORDSTROM 88 FORMER COCHAIRMAN OF NORDSTROM INC THE DEPARTMENT STORE CHAIN HE HELPED TO BUILD SUNDAY IN SEATTLE OF COMPLICATIONS FROM PNEUMONIA 9304060009 930406 CREDIT MARKETS TREASURY PRICES POST MODERATE GAINS AS TRADING IS QUIET AHEAD OF KEY INFLATION DATA THIS WEEK BY THOMAS D LAURICELLA AND TERENCE DONNELLY SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS ROSE MODERATELY YESTERDAY DURING VERY LIGHT TRADING IN A MODEST CORRECTION OF FRIDAY'S SELLOFF THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH A 1000 FACE VALUE TO 101 6/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE DROPPED TO 702 FROM 706 ON FRIDAY THE 10YEAR NOTE ROSE NEARLY 3/8 POINT TO 100 31/32 TO YIELD 611 DOWN FROM 616 WITH NO MAJOR NEWS EMERGING TO DRIVE PRICES IN EITHER DIRECTION YESTERDAY AND AHEAD OF IMPORTANT INFLATION DATA TO BE RELEASED THURSDAY AND FRIDAY TRADERS WERE CONTENT TO LET THE MARKET DRIFT A GROWING CONCERN FOR THE MARKET YESTERDAY WAS CONGRESS'S FAILURE TO PASS AN INCREASE IN THE AMOUNT OF DEBT THAT THE TREASURY DEPARTMENT IS ALLOWED TO HAVE OUTSTANDING THE TREASURY HAS RUN INTO THE 4145 TRILLION DEBT CEILING MEANING THAT IT CANNOT ISSUE ANY MORE DEBT UNTIL THE LIMIT IS INCREASED WHILE THE HOUSE OF REPRESENTATIVES PASSED A DEBT LIMIT INCREASE ACTION IN THE SENATE HAS BEEN TIED UP BY A REPUBLICAN FILIBUSTER OF PRESIDENT CLINTON'S 163 BILLION FISCAL STIMULUS PLAN WITHOUT THE DEBT LIMIT INCREASE IN PLACE THE TREASURY WAS FORCED TO POSTPONE YESTERDAY'S 224 BILLION THREEMONTH AND SIXMONTH BILL AUCTION LAST WEEK THE TREASURY HAD TO POSTPONE A 1425 BILLION 52WEEK BILL OFFERING THE LACK OF NEW SECURITIES IN THE BILL SECTOR HELPED PROVIDE A SMALL LIFT FOR SHORTTERM SECURITIES YESTERDAY AS BILL RATES ENDED 002 TO 003 PERCENTAGE POINT LOWER THE MARKET IS A LITTLE BIT FIRMER IN SOME OF THE BILLS SAID STEPHEN GALLAGHER A MONEY MARKET ECONOMIST AT KIDDER PEABODY & CO IT'S NOT A SUBSTANTIAL DISLOCATION HE ADDED UNLESS THE DEBT LIMIT INCREASE IS PASSED THE TREASURY HAS SAID IT WILL RUN OUT OF CASH TOMORROW THE THREAT OF HAVING TO CLOSE THE GOVERNMENT DOWN SHOULD BE ENOUGH TO GET CONGRESS TO BREAK THE CURRENT LOGJAM ONE WAY OR ANOTHER SAID MR GALLAGHER OF KIDDER CONGRESS WILL BE FORCED TO GET PAST IT SOMEHOW HE SAID BECAUSE OF THE GOVERNMENT'S NEED FOR CASH THURSDAY IF THE DEBT LIMIT INCREASE IS PASSED TOMORROW THE TREASURY MAY HAVE TO AUCTION BILLS WITHOUT A WHENISSUED TRADING PERIOD AND WITH EITHER SAMEDAY OR NEXTDAY SETTLEMENT IN THE BROADER TREASURY MARKET INFLATION CONCERNS KEPT MANY INVESTORS ON THE SIDELINES WITH THE PRODUCER PRICE INDEX SLATED TO BE RELEASED THURSDAY AND THE CONSUMER PRICE INDEX SLATED TO BE RELEASED FRIDAY INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN BECAUSE US BOND MARKETS WILL BE CLOSED FRIDAY IN OBSERVANCE OF THE EASTER HOLIDAY INVESTORS ARE FOCUSING ON THE PRODUCER PRICE INDEX IN PARTICULAR THE PRICE DATA ARE LOOMING LARGE OVER A MARKET THAT HAS RECENTLY SHOWN AN INCREASINGLY THIN SKIN WHEN IT COMES TO BAD INFLATION NEWS IT IS A VERY INFLATION SENSITIVE MARKET AT THE MOMENT SAID CARY LEAHEY SENIOR ECONOMIST AT LEHMAN GOVERNMENT SECURITIES INC WE'VE HAD THE RUNUP IN COMMODITY PRICES AND THE BAD INFLATION NUMBERS IN JANUARY AND FEBRUARY AND THERE MAY BE NO RELIEF IN THE MARCH DATA MR LEAHEY SAID MR LEAHEY PREDICTED THE MARCH PRODUCER PRICE INDEX WILL SHOW A SHARP 07 JUMP WELL ABOVE GENERAL MARKET EXPECTATIONS FOR A 03 RISE BUT MR LEAHEY SAID THE FORECAST IS BASED LARGELY ON A SPIKE IN ENERGY PRICES DURING THE MONTH ADDING THAT INFLATION IS NOT ON THE UPWARD TREND THE MARKET IS CURRENTLY FEARING THERE IS A SENSE IN THE MARKET WHICH I THINK IS WRONG THAT EVEN THOUGH GROWTH WILL BE MODERATE AT A 3 RATE OR LESS WE STILL MAY BE ON THE ROAD TO RISING INFLATION RATES HE SAID BONDS OF GPA GROUP PLC THE CASHSTRAPPED IRISH AIRCRAFT LEASING COMPANY TUMBLED TO NEW LOWS YESTERDAY AMID CONCERNS THAT THE COMPANY WOULD BE UNABLE TO COMPLETE A PLANNED BANK LOAN RESTRUCTURING IN THE BROADER MARKET MOST HIGHYIELD BONDS CLOSED LITTLE CHANGED WITH INVESTORS AND DEALERS ALIKE PREPARING FOR A QUIET HOLIDAYSHORTENED WEEK INVESTMENTGRADE BONDS ROSE 1/8 POINT TO 1/4 POINT IN LIGHT TRADING THE PRIMARY MARKET WAS EQUALLY QUIET COMERICA BANK A UNIT OF COMERICA INC SOLD 100 MILLION OF ONEYEAR BANK NOTES WHILE FLORIDA POWER & LIGHT CO AN FPL GROUP UNIT SOLD 125 MILLION OF 11YEAR FIRST MORTGAGE BONDS THE GPA GROUP 875 NOTES DUE 1998 TRADED AT 37 FLAT OR WITHOUT ACCRUED INTEREST WHEN AN ISSUE TRADES FLAT IT USUALLY SIGNALS THAT INVESTORS ARE UNCERTAIN THAT THE COMPANY WILL BE ABLE TO MAKE SCHEDULED INTEREST PAYMENTS THE NOTES WHICH WERE ISSUED IN 1991 THROUGH GPA'S US FINANCING ARM GPA DELAWARE INC HAVE DROPPED ABOUT 13 POINTS IN THE PAST TWO WEEKS AND ABOUT 30 POINTS SINCE LATE DECEMBER OR 300 FOR A BOND WITH A 1000 FACE VALUE GPA WILL HAVE TO MAKE INTEREST PAYMENTS TOTALING SOME 122 MILLION ON JUNE 15 TRADERS SAID THOSE PAYMENTS APPEAR TO HINGE ON COMPLETION OF GPA'S BANK DEBT RESTRUCTURING WHICH IN TURN DEPEND ON GPA'S ABILITY TO RAISE NEW EQUITY MEANWHILE ACTIVITY IN THE MARKET FOR NEW JUNK BONDS IS BEGINNING TO PICK UP MORE THAN 1 BILLION OF NEW JUNK BONDS COULD BE OFFERED THIS WEEK INVESTOR DEMAND FOR THESE DEALS WILL BE CLOSELY WATCHED BY BANKERS BECAUSE IT WILL LARGELY DETERMINE THE FATE OF THE MORE THAN 20 DEALS WAITING IN THE WINGS IN SHARP CONTRAST TO THE JUNK PRICINGS EARLIER THIS YEAR FEW OF THIS WEEK'S OFFERINGS WILL YIELD BELOW 9 SOME INVESTORS BELIEVE THAT A JUNK BOND YIELDING LESS THAN 95 SHOULD BE AVOIDED BECAUSE IT IS TOO VULNERABLE TO WIDE SWINGS IN THE TREASURY MARKET MUNICIPAL BONDS DRIFTED YESTERDAY TO FINISH NARROWLY MIXED ENDING GENERALLY 3/8 LOWER TO 1/4 FIRMER AMONG ACTIVELY TRADED MUNIS THE LOS ANGELES DEPARTMENT OF WATER & POWER'S 5875 ELECTRIC PLANT REVENUE REFUNDING BONDS OF 2030 FINISHED 1/8 FIRMER AT 98 1/2 TO YIELD 596 THE NORTHEAST MARYLAND WASTE DISPOSAL AUTHORITY'S 630 SOLID WASTE REVENUE BONDS OF 2016 FINISHED UNCHANGED AT 98 3/4 TO YIELD 636 THIS WEEK'S PRIMARY MARKET ACTIVITY WILL GET GOING TODAY WHEN A FLURRY OF ISSUES WILL BE PRICED IN THE COMPETITIVE SECTOR BIDS WILL BE TAKEN FOR MINNESOTA'S 3346 MILLION OF REFUNDING GENERAL OBLIGATION BONDS GUILFORD COUNTY NC'S 567 MILLION OF VARIOUS SERIES 1993 BONDS AND THE LAS VEGAS VALLEY WATER DISTRICT'S 519 MILLION OF WATER REFUNDING BONDS IN NEGOTIATED PRICING ACTIVITY THE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY OF NEW YORK CITY'S 88 MILLION OF CERTIFICATES ARE EXPECTED TO BE PRICED BY AN ARTEMIS CAPITAL GROUP INC FEDERAL HOME LOAN MORTGAGE CORP PRICED A NEW TYPE OF MORTGAGEBACKED SECURITY IN AN OTHERWISE QUIET SESSION IN WHICH PRICES MOVED HIGHER MEANWHILE IN THE ASSETBACKED MARKET ATTENTION WAS ON A 15 BILLION ISSUE OF CHRYSLER CORP AUTO LOAN CERTIFICATES EXPECTED TO BE PRICED TODAY THE NEW FREDDIC MAC ISSUE WAS ITS FIRST MACS MODIFIABLE AND COMBINABLE SECURITIES DEAL BACKED BY GINNIE MAE SECURITIES MACS ARE A SOCALLED SYNTHETIC TYPE OF SECURITY THAT ALLOW INVESTORS TO ADJUST THE COUPONS OF THEIR INVESTMENTS SALOMON BROTHERS INC UNDERWROTE THE 500 MILLION MACS DEAL SERIES GS003 BACKED BY GINNIE MAE 95 MORTGAGE SECURITIES THIS OFFERING INCLUDED AN INTERESTONLY CLASS A PRINCIPALONLY CLASS AND AS MANY AS 30 OTHER CLASSES WITH A MIX OF COUPONS PREVIOUSLY FREDDIE MAC HAS OFFERED THREE MACS TOTALING 41 BILLION BUT THEY WERE BACKED BY FREDDIE MAC GOLD MORTGAGE SECURITIES SALOMON TURNED AROUND SOME OF THE LATEST MACS OFFERING USING SOME CLASSES OF SECURITIES AS COLLATERAL FOR A FREDDIE MAC REAL ESTATE MORTGAGE INVESTMENT CONDUIT THE 300 MILLION FREDDIE MAC SERIES G009 DEAL ELSEWHERE FOUR MORE REMICS TOTALING 16 BILLION WERE ANNOUNCED 9304060008 930406 WORLD MARKETS TOKYO RALLY CONTINUES AND PRICES GAIN 16 LONDON STOCKS LOSE 11 ON WALL STREET'S SLIDE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS' RALLY CONTINUED MONDAY AS THE BENCHMARK INDEX CLIMBED 16 IN ACTIVE DEALINGS BUT LONDON SHARES SLUMPED 11 AS INVESTORS WERE RATTLED BY FRIDAY'S SHARP DROP ON WALL STREET IN TOKYO THE NIKKEI 225STOCK INDEX WHICH JUMPED 34785 POINTS FRIDAY ADVANCED 31252 TO 1975946 IN TOKYO TUESDAY THE NIKKEI INDEX FELL 16835 POINTS TO CLOSE THE MORNING SESSION AT 1959111 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 12 BILLION SHARES COMPARED WITH 154 BILLION SHARES IN THE PREVIOUS SESSION ADVANCERS SWAMPED LOSERS 778329 BUYING BY FOREIGNERS INDIVIDUALS AND DEALERS KEPT THE MARKET'S MOMENTUM GOING DESPITE THE SHARP SLIDE BY NEW YORK STOCKS FRIDAY AND THE YEN'S CONTINUED STRENGTH IN FOREIGNEXCHANGE MARKETS PURCHASES FOCUSED ON LAGGING SECTORS SUCH AS CONSTRUCTION SHIPBUILDING SECURITIES FIRMS TRUST BANKS AND SOME ELECTRICAL SHARES AS INVESTORS EAGERLY CONTINUED TO SWITCH ARENAS WHILE PROFITTAKING LEFT SOME RECENT WINNERS LOWER WITH JAPANESE STOCKS' PRICE/EARNINGS RATIOS ALREADY BACK UP TO 70 OR MORE AT THE LEVELS OF THE SOCALLED SPECULATIVE BUBBLE ERA DURING THE LATE 1980S SOME INSTITUTIONAL INVESTORS URGED CAUTION SAYING THE NIKKEI'S 18 RISE IN THE PAST MONTH HAS BEEN OVERDONE BUT SOME TRADERS DISMISSED THAT CONCER NOTING THE EARNINGS OUTLOOK FOR JAPANESE COMPANIES COULD IMPROVE AMID RECENT SIGNS OF ECONOMIC RECOVERY STILL EVEN PARTICIPANTS WHO EXPECT A FURTHER RUNUP PERHAPS APPROACHING 21000 ON THE NIKKEI IN THE NEXT MONTH ALSO EXPECT THIS TO BE FOLLOWED BY A FIRM CORRECTION IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAVE UP 311 POINTS TO 28388 NEAR THE INTRADAY LOW OF 28351 THE FT 30STOCK INDEX SANK 266 POINTS OR 12 TO 21967 VOLUME WAS 4377 MILLION SHARES COMPARED WITH 6066 MILLION SHARES IN THE PREVIOUS SESSION TURNOVER REMAINED SPARSE AS MANY INVESTORS DECIDED TO HOLD OFF TAKING FRESH POSITIONS AHEAD OF THE LONDON BOURSE'S FOURDAY EASTER HOLIDAY WEEKEND SOME INVESTORS PAUSED AFTER A SERIES OF DEMANDS ON INSTITUTIONAL CASH CULMINATING IN LAST WEEK'S AUCTION OF 3 BILLION 46 BILLION OF 20YEAR GILTS OR BONDS BUT STOCKS' DECLINE YESTERDAY FROM AN INTRADAY HIGH OF 28551 ON THE 100STOCK INDEX WAS ATTRIBUTED LARGELY TO FRIDAY'S SELLOFF ON WALL STREET ALSO SOME INTERNATIONAL STOCKS EASED ON THE DOLLAR'S WEAKNESS AGAINST STERLING IN FRANKFURT SHARE PRICES ENDED LOWER IN A CONSOLIDATION THAT IS EXPECTED TO LAST AT LEAST UNTIL AFTER EASTER WHICH IS NEXT SUNDAY THE DAX 30STOCK INDEX FELL 306 POINTS TO 165869 TRADING WAS LACKLUSTER ON LIGHT VOLUME PARIS EQUITIES DROPPED MODERATELY AMID CAUTION AHEAD OF A MAJOR POLICY STATEMENT TO THE NATIONAL ASSEMBLY SCHEDULED FOR THURSDAY BY FRANCE'S NEW CENTERRIGHT GOVERNMENT AMSTERDAM SHARES ENDED MIXED WITH A WEAK UNDERTONE ON THE DOLLAR'S SOFTNESS AND NEW YORK'S FRIDAY LOSSES MILAN STOCKS ALSO WERE MIXED AS POSITIVE UNDERLYING SENTIMENT WAS RESTRAINED BY CONCERNS ABOUT ITALY'S POLITICAL CORRUPTION SCANDAL STOCKS DROPPED IN MADRID AND IN STOCKHOLM IN REACTION TO FRIDAY'S SLIDE ON WALL STREET SYDNEY PRICES DECLINED FOLLOWING NEW YORK'S SLUMP FRIDAY THOUGH THE WEAKNESS WAS PARTLY OFFSET BY TOKYO'S CONTINUED STRENGTH GOLD SHARES EASED FOR THE FIRST TIME SINCE MARCH 18 DESPITE A HIGHER BULLION PRICE MANILA SHARES SURGED IN HEAVY VOLUME ON AGGRESSIVE BUYING AHEAD OF AN ANTICIPATED STRONGER MARKET AFTER THE HOLY WEEK HOLIDAY THURSDAY AND FRIDAY AMONG CORPORATE DEVELOPMENTS IN LONDON SEARS FELL 2 PENCE OR 19 TO 99 PENCE 150 THE RETAILER WHICH ISN'T RELATED TO A SIMILARLY NAMED US COMPANY SOLD ITS UNPROFITABLE GALLIFORD HOME BUILDING DIVISION TO THE UNIT'S MANAGERS FOR 271 MILLION 411 MILLION THE SALE WILL RESULT IN A 28 MILLION LOSS WHICH SEARS WILL TAKE AS A SPECIAL AFTERTAX CHARGE FOR THE YEAR THAT ENDED JAN WPP GROUP JUMPED 3 OR 49 TO 64 THE ANGLOUS ADVERTISING COMPANY'S 80 MILLION RIGHTS ISSUE OF NEW SHARES WAS 797 TAKEN UP BY EXISTING HOLDERS AND THE REMAINDER WERE PLACED WITH INSTITUTIONAL INVESTORS PROCEEDS ARE TO BE USED TO REDUCE SHORTTERM DEBT TOTAL NET DEBT AT THE END OF LAST YEAR WAS 240 MILLION QUEENS MOAT HOUSES IN WHICH TRADING HAS BEEN SUSPENDED SINCE LAST WEEK APPOINTED AN ACCOUNTING FIRM TO REVIEW ITS FINANCIAL POSITION AND SUSPENDED ITS FINANCE DIRECTOR DAVID M HERSEY AND ITS DEPUTY CHAIRMAN AND JOINT MANAGING DIRECTOR MARTIN A MARCUS THE HOTEL COMPANY WILL DELAY POSTING ITS 1992 RESULTS WHICH HAD BEEN SCHEDULED FOR TOMORROW QUEENS MOAT HAS NET DEBT OF ABOUT 800 MILLION IN FRANKFURT PORSCHE SAGGED 15 MARKS OR 28 TO 518 MARKS 32354 THE AUTO MAKER'S LOSS FOR THE YEAR ENDING JULY 31 COULD EXCEED INDUSTRY ANALYSTS' PROJECTION OF A DEFICIT OF 240 MILLION MARKS 1499 MILLION ACCORDING TO THE NEWS MAGAZINE DER SPIEGEL WHICH CITED A PLUNGE IN PORSCHE'S SALES PORSCHE WOULDN'T SPECIFY HOW BIG A LOSS IT EXPECTS BUT DID CONFIRM THAT ITS AUTO SALES IN GERMANY FELL 47 IN THE FISCAL FIRST HALF ENDED JAN 31 DECLINES WERE 17 IN THE US AND 32 IN OTHER EXPORT MARKETS DEUTSCHE BABCOCK EASED 80 PFENNIGS TO 15220 MARKS THE MACHINERY AND PLANT ENGINEERING GROUP TOLD THE ANNUAL MEETING THAT SALES FOR THE FIRST HALF ENDED MARCH 31 ROSE 18 TO 31 BILLION MARKS FROM A YEAR EARLIER AND ORDERS GAINED 55 WHILE ORDER BACKLOGS CLIMBED 29 TO 94 BILLION MARKS 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 9304060007 930406 DIVIDEND NEWS NORTHWEST NATURAL GAS CO NORTHWEST NATURAL GAS CO PORTLAND ORE SAID ITS DIRECTORS APPROVED AN INCREASE IN THE UTILITY'S QUARTERLY DIVIDEND TO 44 CENTS A SHARE FROM 43 CENTS A SHARE PAYABLE MAY 15 TO SHAREHOLDERS OF RECORD APRIL 30 9304060006 930406 MASTERCARD REPORTS GROWTH IN BUSINESS OF OFFLINE DEBIT CARD NEW YORK MASTERCARD INTERNATIONAL INC SAID ITS OFFLINE US DEBIT CARD BUSINESS GREW RAPIDLY IN 1992 AS BANKS INCREASINGLY OFFERED THE CARDS AND MORE CONSUMERS BEGAN TO USE THE CARDS IN PLACE OF CASH OR CHECKS THE AMOUNTS FOR PURCHASES MADE WITH DEBIT CARDS ARE DEDUCTED FROM THE CUSTOMER'S CHECKING ACCOUNT OFFLINE DEBIT CARDS UNLIKE ONLINE CARDS ARE ACCEPTED WHERE VISA CARDS OR MASTERCARDS ARE ACCEPTED AND ONLY REQUIRE A CUSTOMER'S SIGNATURE VERIFICATION ONLINE CARDS ARE LINKED TO AUTOMATIC TELLER MACHINES AND MUST BE VERIFIED THROUGH THE MACHINES BY THE MERCHANT BEFORE THEY ARE ACCEPTED THE NUMBER OF BANKISSUED ATM CARDS WITH THE MASTERCARD LOGO ROSE 44 IN 1992 TO MORE THAN 24 MILLION IN THE US MASTERCARD SAID SALES VOLUME FOR PURCHASES AT MASTERCARD MERCHANTS WORLDWIDE JUMPED 42 TO ALMOST 12 BILLION THE COMPANY SAID IT EXPECTS TO SUSTAIN THIS PROGRAM'S PACE OF GROWTH IN 1993 MASTERCARD INTERNATIONAL IS AN ASSOCIATION OF CREDITCARD ISSUERS 9304060004 930406 INTERNATIONAL PHILIPPINE INFLATION RATE MANILA THE PHILIPPINES THE PHILIPPINES' ANNUALIZED INFLATION RATE FELL TO 78 IN MARCH FROM 83 IN FEBRUARY THE NATIONAL STATISTICS OFFICE SAID ECONOMISTS TRACE THE LOWER INFLATION RATE TO WEAK DEMAND BROUGHT ABOUT BY THE COUNTRY'S POWER CRISIS WHICH HAS RESULTED IN LOWER INCOME AND LOWER PURCHASING POWER 9304060003 930406 WALMART DEVELOPS NEW PRIVATE LABEL FOR PACKAGED FOOD BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL BENTONVILLE ARK WALMART STORES INC IS DEVELOPING A NEW PRIVATELABEL LINE OF PACKAGED FOOD ITEMS THAT WILL HIT THE SHELVES OF THE COMPANY'S SUPERCENTER STORES NEXT MONTH THE COMPANY SAID THE NEW LINE UNDER THE NAME GREAT VALUE WILL INITIALLY INCLUDE ABOUT 350 PRODUCTS THE COMPANY SAID VASTLY EXPANDING WALMART'S PRIVATELABEL PROGRAM THAT WILL ADD PRESSURE TO GROCERY CHAINS THAT COMPETE WITH THE COMPANY'S 38 SUPERCENTER STORES WHICH COMBINE A TYPICAL WALMART MERCHANDISE STORE WITH A FULLSCALE GROCERY WORD OF WALMART'S NEW LINE FIRST REPORTED YESTERDAY IN ADVERTISING AGE CAME AS LITTLE SURPRISE TO INDUSTRY OBSERVERS THE RETAIL INDUSTRY'S BEEN WAITING FOR THE OTHER SHOE TO DROP SINCE SAM'S AMERICAN CHOICE SAID BRIAN SHAROFF PRESIDENT OF THE PRIVATE LABEL MANUFACTURER'S ASSOCIATION REFERRING TO A WALMART PRIVATE LABEL INTRODUCED SEVERAL YEARS AGO FOCUSING ON SNACK ITEMS AND SOFT DRINK PRODUCTS MOST GROCERY CHAINS HAVE CARRIED SUBSTANTIAL PRIVATELABEL SELECTIONS FOR DECADES BUT THE TREND HAS ACCELERATED IN RECENT YEARS WITH UNIT SALES OF HOUSE BRANDS INCREASING TO 182 OF ALL SUPERMARKET SALES LAST YEAR COMPARED WITH 153 IN 1988 BASED ON A RECENT SURVEY BY THE ASSOCIATION MR SHAROFF SAID MAJOR DISCOUNT RETAILING COMPETITORS SUCH AS KMART AND TARGET ALSO HAVE BEEN EXPANDING THEIR PRIVATELABEL PROGRAMS ANALYSTS SAY FOR WALMART THE NEW LINE PROVIDES ADDITIONAL LEVERAGE IN A FIELD IT HAS FOUND HIGHLY COMPETITIVE UNLIKE THE GENERALMERCHANDISE RETAILERS WHOM WALMART HAS DOMINATED IN RECENT YEARS THE GROCERY INDUSTRY HAS LONG BEEN ACCUSTOMED TO THINNER MARGINS AND MORE AGGRESSIVE COST CONTROLS ANALYSTS SAID THE PRIVATELABEL STRATEGY WILL PLAY AN IMPORTANT PART IN THE COMPANY'S AMBITIOUS PLAN TO EXPAND TO MORE THAN 300 SUPERCENTERS IN THE NEXT FIVE YEARS BY AGGRESSIVELY PURSUING SALES OF PRIVATELABEL FOOD PRODUCTS THE COMPANY CAN FATTEN ITS MARGINS BUILD CUSTOMER LOYALTY TO ITS OWN BRANDS AND ENHANCE THE IMAGE OF PROVIDING GOOD VALUE FOR LOW PRICES SAID DONALD SPINDEL AN ANALYST AT AG EDWARDS 9304060002 930406 CORPORATE FOCUS LINDNERS COPE WITH LEAKY FLAGSHIPS SUCCESSION ISSUES TROUBLE AT CHIQUITA AND GREAT AMERICAN COMMUNICATIONS DOGS FINANCIER BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL CRACKS HAVE APPEARED IN CINCINNATI FINANCIER CARL H LINDNER'S EMPIRE MR LINDNER WHO COMMANDS A COMPLEX CLUSTER OF FAMILYOWNED BUSINESSES IS CONTENDING WITH PROBLEMS IN TWO FLAGSHIP COMPANIES GREAT AMERICAN COMMUNICATIONS CORP AND CHIQUITA BRANDS INTERNATIONAL INC AS WELL AS SMALLER UNITS LAST MONTH CHIQUITA REPORTED A 1934 MILLION FOURTHQUARTER LOSS AFTER POSTING A 613 MILLION RESTRUCTURING CHARGE IN FEBRUARY TROUBLED GREAT AMERICAN ANNOUNCED PLANS FOR A PREPACKAGED CHAPTER 11 FILING IN ADDITION THE LINDNERS ARE TACKLING SOME CONTENTIOUS MANAGEMENT ISSUES INCLUDING THE TICKLISH MATTER OF WHO WILL HEAD THE EMPIRE ONCE MR LINDNER WHO TURNS 74 LATER THIS MONTH RETIRES A COMPANY SPOKESWOMAN SAYS MR LINDNER IS STILL ACTIVELY INVOLVED IN THE COMPANY'S MYRIAD BUSINESSES AND WORKS LONG HOURS BUT HE HAS PLACED EACH OF HIS THREE SONS CARL KEITH AND CRAIG AT THE HELM OF THREE COMPANIES IT'S NOT CLEAR WHETHER THE YOUNG LINDNERS WILL ULTIMATELY RULE AS A TRIUMVIRATE OR WHETHER ONE WILL EMERGE AS THEIR FATHER'S HEIR APPARENT NO ONE KNOWS WHAT'S GOING TO HAPPEN AFTER CARL HE AND HIS THREE SONS HAVE ALWAYS PLAYED THINGS CLOSE TO THE VEST OBSERVES A CINCINNATI BUSINESSMAN MR LINDNER HIS SONS AND OTHER TOP EXECUTIVES DECLINED TO BE INTERVIEWED FOR THIS ARTICLE ONE THING IS CERTAIN SOME OF THE FAMILY'S BUSINESSES ARE IN NEED OF OVERHAULS THERE HAVEN'T BEEN MANY STELLAR PERFORMANCES AMONG THE LINDNERS' PUBLICLY HELD COMPANIES SAYS MICHAEL LAMB PRESIDENT OF WEALTH MONITORS INC A RESEARCH COMPANY IN OVERLAND PARK KAN IT'S HARD TO KNOW HOW HIS PRIVATE COMPANIES ARE DOING THE FAMILY FORTUNE ISN'T WHAT IT WAS IN THE GOGO 1980S STANDARD & POOR'S CORP ESTIMATES THE COMPANIES' TOTAL INDEBTEDNESS AT 2 BILLION ACCORDING TO FORBES MAGAZINE'S LIST OF THE 400 WEALTHIEST AMERICANS THE LINDNERS' NET WORTH OR ASSETS MINUS LIABILITIES HAS FALLEN TO 450 MILLION LAST FALL FROM 800 MILLION IN 1991 ALTHOUGH PEOPLE CLOSE TO THE FAMILY SAY THE LATEST FORBES NUMBER IS LOW ALL THIS IS PROMPTING THE LINDNERS TO SELL ASSETS TO RAISE CASH AS WELL AS EMPHASIZE SOME STRONGER BUSINESSES LIKE INSURANCE OVER OTHERS PROBLEMS AT GREAT AMERICAN COMMUNICATIONS A TELEVISION AND RADIO COMPANY STEM FROM ITS HIGHLY LEVERAGED 1987 ACQUISITION OF TAFT BROADCASTING WHICH BURDENED THE COMPANY WITH 14 BILLION OF DEBT NOW DOWN TO A STILLSTEEP 625 MILLION A WEAK ADVERTISING MARKET HAS FURTHER AGGRAVATED THE BROADCAST COMPANY'S DIFFICULTIES GREAT AMERICAN HAS SCRAMBLED FOR CASH BY SELLING VALUABLE ASSETS THE BIGGEST BLOW WAS THE 1991 SALE OF HANNABARBERA A CARTOON COMPANY TO MEDIA MOGUL TED TURNER WHO HAS LAUNCHED AN ALLCARTOON CABLE TV CHANNEL IF THEY HADN'T HAD TO SELL HANNABARBERA THEY COULD HAVE STARTED THEIR OWN CABLE CHANNEL SAYS SAL MUOIO A GABELLI & CO ANALYST ANALYSTS BELIEVE PROBLEMS AT GREAT AMERICAN MAY PROMPT THE FAMILY TO GRADUALLY LEAVE SHOW BUSINESS ALTOGETHER THEY CITE MR LINDNER'S AGREEMENT EARLIER LAST MONTH TO SWAP A 482 STAKE IN SPELLING ENTERTAINMENT GROUP INC A TV AND MOTION PICTURE PRODUCTION COMPANY FOR A 4 POSITION IN BLOCKBUSTER ENTERTAINMENT CORP THE MOVE GIVES MR LINDNER'S CLOSELY HELD COMPANY AMERICAN FINANCIAL CORP MORE LIQUIDITY THAN THE SPELLING STAKE PROVIDED SOME ANALYSTS SPECULATE HE WILL ULTIMATELY SELL THE BLOCKBUSTER STOCK BRUCE BENTEMAN A PRIVATE RESEARCH ANALYST BASED IN ROELAND PARK KAN SAYS THE LINDNERS WERE ORIGINALLY GOING TO CREATE A MASSIVE ENTERTAINMENT COMPANY FOR CRAIG LINDNER ONE OF THE SONS BUT THE PROBLEMS WITH GREAT AMERICAN KEPT IT FROM HAPPENING GREAT AMERICAN COMMUNICATIONS' STRUGGLES ARE FAR FROM OVER THE COMPANY WHICH IS 403 OWNED BY AMERICAN FINANCIAL HOPES TO REDUCE DEBT BY 31 WITH ITS PROPOSED PREPACKAGED REORGANIZATION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE ELSEWHERE IN THE LINDNER EMPIRE CHIQUITA'S BANANA BUSINESS HAS BEEN PLAGUED BY CROP DISEASE STRICT EUROPEAN TRADE BARRIERS OVERSUPPLY AND BAD TIMING THE COMPANY WHICH IS 464 OWNED BY AMERICAN FINANCIAL EXPANDED AGGRESSIVELY IN 1991 BUYING NEW BOATS AND BOOSTING PRODUCTION JUST BEFORE THE WORLD BANANA MARKET BECAME OVERRIPE IN ANNOUNCING THE FOURTHQUARTER LOSS THE COMPANY ALSO SAID IT WILL SELL ITS SLUGGISH MEAT BUSINESSES INCLUDING JOHN MORRELL PACKAGED MEATS ANALYSTS WHO ARE LOOKING FOR A BETTER 1993 AND FULL RECOVERY NEXT YEAR SAY CHIQUITA MADE STRATEGIC ERRORS UNDER MR LINDNER CHAIRMAN AND CEO AND ONE OF HIS SONS KEITH H LINDNER PRESIDENT AND CHIEF OPERATING OFFICER THEY WERE RUNNING CHIQUITA INTO EARLY 1992 AS IF IT WERE A BIGGROWTH BUSINESS NOTES JOHN M MCMILLIN AN ANALYST WITH PRUDENTIAL SECURITIES THEN THEY GOT SOME BAD BREAKS THE LINDNERS FACE PROBLEMS ON OTHER FRONTS GENERAL CABLE CORP A SPINOFF OF TROUBLED UNITS OF PENN CENTRAL CORP ANOTHER LINDNER COMPANY HAS SEEN ITS STOCK PRICE PLUMMET MORE THAN 40 SINCE IT WENT PUBLIC LAST JUNE THE WIRE AND CABLE COMPANY IS 562 OWNED BY PENN CENTRAL AMERICAN FINANCIAL AND ITS AMERICAN FINANCIAL ENTERPRISES UNIT IN 1992 AMERICAN FINANCIAL THE CORE OF MR LINDNER'S EMPIRE POSTED A 393 BILLION LOSS REFLECTING CHIQUITA'S LOSS AND A 180 MILLION WRITEDOWN RELATED TO GREAT AMERICAN ON 117 BILLION OF REVENUE THE HOLDING COMPANY EXPECTS AN IMPROVED 1993 FIRST QUARTER S&P RECENTLY PUT AMERICAN FINANCIAL'S DEBT ON ITS CREDITWATCH WITH NEGATIVE IMPLICATIONS AND LOWERED ITS RATINGS OUTLOOK TO NEGATIVE FROM STABLE ON AMERICAN ANNUITY GROUP AN INSURANCE COMPANY 816 OWNED BY AMERICAN FINANCIAL AND ON PENN CENTRAL WHOSE PRESIDENT IS CARL H LINDNER III THE ELDEST SON THE RATINGS COMPANY IS CONCERNED THAT THE INVESTMENT PORTFOLIOS OF THE COMPANIES' INSURANCE UNITS ARE LOADED UP WITH LARGE CONCENTRATIONS OF STOCK IN TROUBLED LINDNER COMPANIES SUCH AS CHIQUITA AND GREAT AMERICAN COMMUNICATIONS AN S&P ANALYST SAYS TO BE SURE THERE ARE SOME STARS AMONG LINDNER BUSINESSES CINCINNATIBASED PROVIDENT BANCORP INC WHICH HAS 37 BILLION IN ASSETS IS CONSIDERED ONE OF OHIO'S STRONGEST BANKS THE FAMILY AND AMERICAN FINANCIAL OWN 60 OF PROVIDENT'S COMMON SHARES THE LINDNERS ALSO RUN SEVERAL PROFITABLE INSURANCE COMPANIES NORMALLY TIGHTLIPPED THE FAMILY HAS SAID PUBLICLY IT INTENDS TO FOCUS ON INSURANCE LATE LAST YEAR PENN CENTRAL WHICH IS 509 OWNED BY AMERICAN FINANCIAL PUT ITS SLUGGISH DEFENSE AND INDUSTRIAL PRODUCTS BUSINESSES ON THE BLOCK AND SAID IT WOULD DEVOTE ITSELF TO ITS PROPERTY AND CASUALTY INSURANCE UNITS AMERICAN FINANCIAL CORP HAD A 769 MILLION LOSS IN 1992 ON 393 BILLION OF REVENUE YEAREND ASSETS WERE 1171 BILLION IN YESTERDAY'S CORPORATE FOCUS ARTICLE IT WAS INCORRECTLY STATED THAT THE COMPANY HAD A 393 BILLION LOSS ON 117 BILLION OF REVENUE 9304060001 930406 MERCEDESBENZ GEARS FOR WIDER MARKET WITH SPORTS VEHICLE TO BE BUILT IN US BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH MERCEDESBENZ AG PROVIDED CLEAR EVIDENCE OF ITS STRATEGY TO MOVE TOWARD LESS COSTLY MODELS BY SAYING IT WILL BUILD A SPORTUTILITY VEHICLE PRICED AT 20000 TO 30000 IN A NEW US ASSEMBLY PLANT THE GERMAN AUTO MAKER IN FORMALLY ANNOUNCING IT WILL SPEND 300 MILLION TO BUILD ITS FIRST US ASSEMBLY PLANT SAID IT HASN'T CHOSEN A SPECIFIC LOCATION FOR THE FACILITY MERCEDES EXPECTS TO SELECT A SITE WITHIN THE NEXT THREE OR FOUR MONTHS BUT TOP MERCEDES OFFICIALS INDICATED THE FACILITY LIKELY WILL BE NEAR ONE OF FOUR US HEAVY TRUCK PLANTS OPERATED BY FREIGHTLINER CORP WHICH LIKE MERCEDESBENZ IS A SUBSIDIARY OF DAIMLERBENZ AG FREIGHTLINER HAS THREE FACTORIES IN NORTH CAROLINA IN THE TOWNS OF MOUNT HOLLY GASTONIA AND CLEVELAND FREIGHTLINER'S FOURTH US PLANT IS IN PORTLAND ORE THE PLANT COULD EMPLOY ABOUT 1500 WORKERS AND BEGIN PRODUCTION IN 1997 MERCEDES OFFICIALS SAID IN BUILDING ITS US PLANT MERCEDES IS FOLLOWING ARCHRIVAL BAYERISCHE MOTOREN WERKE AG IN A STRATEGY TO REDUCE DEPENDENCE ON HIGHCOST GERMAN MANUFACTURING FACILITIES BMW'S FIRST US ASSEMBLY PLANT IN SOUTH CAROLINA WILL OPEN IN 1995 WHAT'S MOST STRIKING ABOUT THE ANNOUNCEMENT IS THAT IT UNDERSCORES MERCEDES'S SHIFT AWAY FROM EVERMORE EXPENSIVE VEHICLES THE NEW MODEL WILL BE MERCEDESBENZ'S ENTRY IN THE US MARKET FOR SPORTUTILITY VEHICLES THE AUTO INDUSTRY'S FASTESTGROWING SEGMENT AND PRICED BELOW THE COMPACT 190 MODEL THE NEW MODEL WILL BE THE LOWESTCOST MERCEDES PRODUCT IN THE US MARKET THUS INSTEAD OF COMPETING WITH BRITAIN'S RANGE ROVER IN THE 40000PLUS PRICE CATEGORY THE NEW MERCEDES VEHICLE WILL COMPETE DIRECTLY AGAINST CHRYSLER CORP'S JEEP GRAND CHEROKEE AND FORD MOTOR CO'S EXPLORER THE IDEA OF MERCEDESBENZ FOLLOWING CHRYSLER AND FORD INTO A MARKET SEGMENT WOULD HAVE BEEN UNHEARD OF JUST A FEW YEARS AGO THE SPORTUTILITY NICHE ISN'T ENTIRELY NEW TO MERCEDES THE COMPANY ALREADY PRODUCES THE GELANDEWAGEN 300GE A BOXY FOURWHEEL DRIVE VEHICLE SOLD IN EUROPE AND JAPAN PARTLY BECAUSE OF ITS BLAND STYLING MERCEDES SOLD JUST 6700 OF THE VEHICLES LAST YEAR THIS REFLECTS A FURTHER LOGICAL STEP IN THE STRATEGIC REORIENTATION OF OUR PASSENGER CAR BUSINESS WERNER NIEFER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MERCEDESBENZ SAID AT A NEWS CONFERENCE HE ADDED THAT THE NEW PLANT WILL OPEN UP NEW ADDITIONAL OPPORTUNITIES BEYOND THE PREVIOUSLY REACHED LEVELS IN THE INTERNATIONAL PASSENGER CAR MARKET MANY MERCEDES MODELS ARE REGARDED AS TOO BIG AND TOO EXPENSIVE BY TODAY'S ENVIRONMENTALLY CONCERNED AND COSTCONSCIOUS BUYERS ANALYSTS SAY FOR EXAMPLE MERCEDESBENZ'S SCLASS LINE HAS BEEN MET WITH LACKLUSTER DEMAND SINCE ITS INTRODUCTION IN 1991 THE CARS RANGING IN PRICE FROM 69900 TO 119500 WERE DERIDED AS CATHEDRALS ON WHEELS BY ONE GERMAN AUTOENTHUSIAST MAGAZINE MERCEDES WILL SOON EXPAND ITS MODEL RANGE TO SIX CLASSES FROM ITS CURRENT THREE CLASSES THE COMPANY PLANS TO ADD A CITY CAR TO ITS LINEUP A SUBCOMPACT TWODOOR CAR THAT COULD COST AS LITTLE AS 10000 ANALYSTS SAY MERCEDES HASN'T SPECIFIED A TARGET PRICE BUT MR WERNER HAS SAID HE WANTS MERCEDES TO BUILD AN INEXPENSIVE LOWPOLLUTION HATCHBACK SOME ANALYSTS BELIEVE THAT A MERCEDESBENZ CITY CAR LIKE THE SPORTUTILITY VEHICLE COULD BE BUILT IN THE NEW US PLANT ALTHOUGH THE COMPANY HASN'T SAID THAT IT'S CLEAR THOUGH THAT THE US OFFERS BIG ADVANTAGES IN MANUFACTURING COMPETITIVENESS TO MERCEDESBENZ AMONG THEM ARE CHEAPER MATERIALS AND LABOR THAN A GERMAN PLANT THE FACILITY WHICH WILL PRODUCE 60000 SPORTUTILITY VEHICLES A YEAR ALSO WILL SHIELD THE AUTO MAKER FROM CURRENCY FLUCTUATIONS IN RECENT YEARS THE STRENGTH OF THE GERMAN MARK HAS PUSHED UP MERCEDESBENZ'S PRICES EVEN AS CONSUMERS HAVE BECOME STINGIER IN THE US MERCEDES WILL SHOOT FOR MANUFACTURING EFFICIENCIES IT HASN'T ACHIEVED IN GERMANY THE COMPANY'S PLANT IN RASTATT GERMANY FOR EXAMPLE IS DESIGNED TO BUILD 360 CARS A DAY WITH 5500 EMPLOYEES MEANWHILE BMW'S PLANNED NEW FACILITY IN SOUTH CAROLINA WILL REQUIRE 2000 EMPLOYEES TO BUILD 400 CARS A DAY BMW ANNOUNCED ITS US PLANT LAST JUNE ADDING TO THE PRESSURE IT HAS BEEN PUTTING ON MERCEDESBENZ LAST YEAR THE AUTO MAKER OUTSOLD AND OUTPRODUCED MERCEDES FOR THE FIRST TIME EVER PUBLICLY MERCEDES PLAYED DOWN THE DEFEAT BUT BMW'S PERFORMANCE IS CLEARLY A CONCERN FOR THE AUTO MAKER BMW HAS PASSED MERCEDES AND I THINK THEY HAVE A PROBLEM WITH THAT SAYS AUTO ANALYST CHRISTOPHER CEDERGREN OF AUTOPACIFIC GROUP INC THE NEW SPORTUTILITY VEHICLE SHOULD HELP LIVEN MERCEDES'S SALES ANALYSTS SAY LAST YEAR MERCEDES SOLD 62832 CARS IN THE US UP 82 FROM THE PREVIOUS YEAR AT THE SAME TIME HOWEVER BMW'S US SALES JUMPED 235 TO 64921 CARS BUT THERE COULD BE PITFALLS WITH A US PLANT ANALYSTS SAY MERCEDES IS ALREADY STRADDLED WITH TOO MUCH CAPACITY AT ITS ASSEMBLY PLANTS IN GERMANY SLOW SALES RECENTLY FORCED THE AUTO MAKER TO IDLE PLANTS AND LAY OFF WORKERS ADDITIONALLY MERCEDES IS IN THE MIDST OF A CORPORATE REORGANIZATION THAT HAS SAPPED MUCH MONEY AND MANAGEMENT TIME STILL MERCEDES SAYS THE COMPANY NEEDS A BRANDNEW PLANT FOR ITS NEW VEHICLE IT WILL BE DIFFICULT BUT IT HAS TO BE DONE JUERGEN HUBBERT MERCEDESBENZ AG'S HEAD OF PASSENGER CARS SAID YESTERDAY OUR CUSTOMERS WANT A SPORTUTILITY VEHICLE MERCEDES CURRENTLY ASSEMBLES 530000 PASSENGER CARS ANNUALLY IN GERMANY SOUTH AFRICA SOUTH KOREA AND INDONESIA THE AUTO MAKER WILL BEGIN PRODUCTION OF THE 400E AND 500SEL MODELS IN MEXICO IN MAY 9304060150 930318 REVIEW & OUTLOOK EDITORIAL NO GUARDRAILS THE GUNNING DOWN OF ABORTION DOCTOR DAVID GUNN IN FLORIDA LAST WEEK SHOWS US HOW SMALL THE BARRIER HAS BECOME THAT SEPARATES CIVILIZED FROM UNCIVILIZED BEHAVIOR IN AMERICAN LIFE IN OUR TIME THE UNITED STATES SUFFERS EVERY DAY OF THE WEEK BECAUSE THERE ARE NOW SO MANY MARGINALIZED PEOPLE AMONG US WHO DON'T UNDERSTAND THE RULES WHO DON'T THINK THAT RULES OF PERSONAL OR CIVIL CONDUCT APPLY TO THEM WHO HAVE NO NOTION OF SELFCONTROL WE ARE THE COUNTRY THAT HAS A TV COMMERCIAL ON ALL THE TIME THAT SAYS JUST DO IT MICHAEL FREDERICK GRIFFIN JUST DID IT AN ANTIABORTION PROTESTER OF INTENSE EMOTIONS HE WALKED AROUND BEHIND THE PENSACOLA WOMEN'S MEDICAL SERVICES CLINIC AND PUMPED THREE BULLETS INTO THE BACK OF DR GUNN EMPTIED HIMSELF MICHAEL GRIFFIN THEN WAITED FOR THE POLICE TO TAKE HIM AWAY A REMARK BY HIS FATHERINLAW CAUGHT OUR EYE NOW WE'VE GOT TO TAKE CARE OF TWO GRANDCHILDREN AS THE SAYING GOES THERE WAS A TIME AND INDEED THERE REALLY WAS A TIME IN THE UNITED STATES WHEN LIFE SEEMED MORE SETTLED WHEN EMOTIONS BOTH PRIVATE AND PUBLIC DIDN'T SEEM TO RUN SO CONTINUOUSLY AT BREAKNECK SPEED SPLATTERING ONE UNGODLY TRAGEDY AFTER ANOTHER ACROSS THE EVENING NEWS HOW DID THIS HAPPEN TO THE UNITED STATES HOW IN TS ELIOT'S PHRASE DID SO MANY BECOME UNDONE WE THINK IT IS POSSIBLE TO IDENTIFY THE DATE WHEN THE US OR MORE PRECISELY WHEN MANY PEOPLE WITHIN IT BEGAN TO TIP OFF THE EMOTIONAL TRACKS A LOT OF PEOPLE WON'T LIKE THIS DATE BECAUSE IT MAKES THEIR POLITICAL CULTURE CULPABLE FOR WHAT HAS HAPPENED THE DATE IS AUGUST 1968 WHEN THE DEMOCRATIC NATIONAL CONVENTION FOUND ITSELF SHARING CHICAGO WITH THE STREET FIGHTERS OF THE ANTIVIETNAM WAR MOVEMENT THE REAL BLAME HERE DOES NOT LIE WITH THE MOBS WHO FOUGHT BLOODY BATTLES WITH THE HYSTERICAL CHICAGO POLICE THE LARGER RESPONSIBILITY FALLS ON THE INTELLECTUALS UNIVERSITY PROFESSORS POLITICIANS AND JOURNALISTIC COMMENTATORS WHO SAID THEN THAT THE ACTS COMMITTED BY THE PROTESTERS WERE JUSTIFIED OR EXPLAINABLE THAT WAS THE BEGINNING AFTER CHICAGO THE JUSTIFICATIONS NEVER REALLY STOPPED AMERICA HAD A NEW CULTURE FOR POLITICAL ACTION AND PERSONAL LIVING WITH GREAT RHETORICAL FIREPOWER BOOKS MAGAZINES OPINION COLUMNS AND EDITORIALS DEFENDED EACH SUCCEEDING ACT OF DEFIANCE AGAINST THE WAR AGAINST UNIVERSITY PRESIDENTS AGAINST CORPORATE PRACTICES AGAINST BEHAVIOR CODES AGAINST DRESS CODES AGAINST VIRTUALLY ALL AGENTS OF ESTABLISHED AUTHORITY WHAT IN THE PAST HAD BEEN SIMPLY ILLEGAL BECAME CIVIL DISOBEDIENCE IF YOU COULD CLAIM AND IT WAS NEVER TOO HARD TO CLAIM THAT YOUR GROUP WAS ENGAGED IN AN ACT OF CIVIL DISOBEDIENCE TAKING OVER A BUILDING PREVENTING A GOVERNMENT OFFICIAL FROM SPEAKING BURSTING ONTO THE GROUNDS OF A NUCLEAR COOLING STATION DESTROYING ANIMAL RESEARCH DESECRATING COMMUNION HOSTS THE SHAPERS OF OPINION WOULD BLOW RIGHT PAST THE BROKEN RULES TO SEEK AN UNDERSTANDING OF THE DISSIDENTS IN THE '60S AND '70S AND ACTIVISTS IN THE '80S AND NOW CONCURRENTLY THE PERSONAL VIRTUE KNOWN AS SELFRESTRAINT WAS DEVALUED IN THE PROCESS CERTAIN RULES THAT FOR A LONG TIME HAD GOVERNED BEHAVIOR ALSO BECAME DEVALUED WHATEVER ELSE WAS GOING ON HERE WE WERE REPEATEDLY LOWERING THE BARRIERS OF ACCEPTABLE POLITICAL AND PERSONAL CONDUCT YOU CAN ARGUE AS MANY DID AND STILL DO THAT ALL THIS WAS NECESSARY BECAUSE THE ESTABLISHED ORDER WOULDN'T RESPOND OR CHANGE BUT THEN YOU STILL NEED TO ACCOUNT FOR THE NATION'S SIMULTANEOUS DIVE INTO EXTENSIVE SOCIAL AND PERSONAL DYSFUNCTION YOU NEED TO ACCOUNT FOR WHAT IS HAPPENING TO THOSE PEOPLE WITHIN US SOCIETY WHO SEEM LEAST ABLE TO NAVIGATE THE POLITICAL AND PERSONAL TORRENTS THAT THEY BECOME PART OF LIKE MICHAEL GRIFFIN THOSE TORRENTS BEGAN WITH THE ANTIWAR MOVEMENT IN THE 1960S THOSE ENDLESS DEMONSTRATIONS THOUGH WERE MERELY ONE PART OF A MUCH DEEPER SHIFT IN AMERICAN CULTURE AWAY FROM COMMUNITY AND FAMILY RULES OF CONDUCT AND TOWARD MORE AUTONOMY MORE PERSONAL INDEPENDENCE AS TO LIMITS YOU SET YOUR OWN THE PEOPLE WHO PROVIDED THE THEORETICAL UNDERPINNINGS FOR THIS SHIFT THE INTELLECTUALS AND POLITICAL LEADERS WHO LED THE MOVEMENT DID VERY WELL OR AT LEAST SURVIVED THEY ARE BORN WITH LARGE RESERVOIRS OF INTELLIGENCE AND PSYCHOLOGICAL STRENGTH THE FAME AND CELEBRITY HELP TOO BUT FOR A LOT OF OTHER PEOPLE IT HASN'T BEEN SUCH AN EASY LIFE TO SUSTAIN NOT EXCEEDINGLY SOPHISTICATED NEITHER THINKERS NOR LEADERS NEVER INTERVIEWED FOR THEIR VIEWS THEY'RE HELD TOGETHER BY FAITH FRIENDS FUN AND AT THE MARGINS BY FANATICISM THE BIG POLITICAL CRACKUPS MAKE THE NEWS A MICHAEL GRIFFIN OR THE WOMAN ON TRIAL IN CONNECTICUT FOR THE ATTEMPTED BOMBING OF THE CEO OF A SURGICALDEVICE COMPANY OR THE '70S RADICALS WHO ACCIDENTALLY BLEW THEMSELVES UP IN A NEW YORK BROWNSTONE BUT THE PERSONAL CRACKUPS JUST FLOAT LIKE FLOTSAM THROUGH THE COUNTRY'S HOSPITALS AND STREETS YOU CAN ALSO SEE SOME OF THEM ON DAYTIME TV AMERICA'S MEDICAL MUSEUM OF PERSONAL AUTONOMY IT MAY BE TRUE THAT MOST OF THE PEOPLE IN HOLLYWOOD WHO DID COCAINE SURVIVED IT BUT MANY OF THE WEAKER MEMBERS OF THE COMMUNITY HIT THE WALL AND MOST OF THE TEENAGE GIRLS IN THE MIDWEST WHO LEARN ABOUT THE NUANCES OF SEX FROM MAGAZINES PUBLISHED BY THIRTYSOMETHING WOMEN IN NEW YORK WILL MORE OR LESS SURVIVE BUT SOME CONTINUE TO END UP AS PROSTITUTES ON EIGHTH AVENUE EVERYONE TODAY SEEMS TO KNOW SOMEONE WHO COULDN'T HANDLE THE TURNS AND WENT OVER THE SIDE OF THE MOUNTAIN THESE WEAKER OR MORE VULNERABLE PEOPLE WHO IN DIFFERENT WAYS MUST TRY TO LIVE ALONG LIFE'S MARGINS ARE AMONG THE REASONS THAT A SOCIETY ERECTS RULES THEY'RE GUARDRAILS IT'S ALSO TRUE THAT WE NEED TO DISTINGUISH GOOD RULES FROM BAD RULES AND PERIODICALLY REEXAMINE OLD RULES BUT THE BROAD MOVEMENT THAT GAINED FORCE DURING THE ANTIWAR YEARS CONSCIOUSLY AND SYSTEMATICALLY TOOK DOWN THE GUARDRAILS INCREDIBLY EVEN JUDGES PITCHED IN ALL OF THEM DID SO TO TRANSFORM THE COUNTRY'S INSTITUTIONS AND ITS CODES OF PERSONAL BEHAVIOR ABORTION FOR INSTANCE IN A SENSE IT HAS BEEN A REMARKABLE POLITICAL AND SOCIAL ACHIEVEMENT FOR THEM BUT LET'S GET SOMETHING STRAIGHT ABOUT THE CONSEQUENCES IF AS A SOCIETY WE WANT TO LIVE UNDER CONDITIONS OF CONSTANT CHALLENGE TO INSTITUTIONS AND LIMITS ON PERSONAL LIFE IF WE ARE GOING TO MARCH AND FIGHT AND LITIGATE OVER EVERY CONCEIVABLE GRIEVANCE THEN WE SHOULD STOP CRYING OVER ALL THE INDIVIDUAL CASUALTIES BECAUSE THERE ARE GOING TO BE A LOT OF THEM MICHAEL GRIFFIN AND DR DAVID GUNN ARE MERELY TWO NAMES ON A LONG LIST OF CONFRONTATIONS AND PERSONAL CATASTROPHE GOING BACK 25 YEARS THAT TODAY IS THE STATUS QUO THE ALTERNATIVE IS TO START RETHINKING IT SEE RELATED LETTERS LETTERS TO THE EDITOR SOMETHING HAPPENED TO US WSJ APRIL 5 1993 SEE RELATED LETTER LETTERS TO THE EDITOR SLAIN DOCTOR VICTIM OF ABORTION TERRORISM WSJ APRIL 9 1993 9303180027 9304060150 9304060133 930302 LAW LEGAL BEAT CHANCES MIXED FOR LAWSUITS OVER BOMBING BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL PLAINTIFFS' LAWYERS EXPECT HUNDREDS OF LAWSUITS TO BE FILED IN THE WAKE OF THE EXPLOSION AT THE WORLD TRADE CENTER BUT THEY'RE DIVIDED ON WHETHER THE BLAST'S VICTIMS WILL BE SUCCESSFUL IN COURT NEW YORK LAWYERS RECEIVED DOZENS OF PHONE CALLS STARTING ON FRIDAY AFTERNOON FROM INDIVIDUALS AND COMPANIES WHO SUFFERED INJURIES OR BUSINESS LOSSES AS A RESULT OF THE EXPLOSION AND SOME LAWYERS ARE CONSIDERING FILING SUITS AGAINST THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY WHICH OWNS THE BUILDING AND COMPANIES THAT HELPED DESIGN AND MAINTAIN IT BUT WHILE SOME LAWYERS ARE WORKING THEIR WORD PROCESSORS MANY MORE ARE HOLDING BACK WINNING SUCH LAWSUITS WON'T BE EASY SAID PAUL RHEINGOLD A NEW YORK PLAINTIFFS' LAWYER YOU START OFF WITH A STRIKE AGAINST YOU BECAUSE THERE WAS A CRIMINAL ACT THAT CAN'T BE DIRECTLY PINNED ON THE PORT AUTHORITY HE SAID YOU PRESUME IF IT'S A TERRORIST GROUP YOU'RE NOT GOING TO GET THE MONEY FROM THEM PLAINTIFFS THAT DO GO TO COURT WILL HAVE TO FOCUS ON ONE QUESTION SAID GEORGE PRIEST A PROFESSOR AT YALE LAW SCHOOL KNOWING THAT SOMETHING LIKE THIS COULD HAPPEN DID EVERYBODY INVOLVED WITH THE BUILDING DO EVERYTHING THEY COULD TO PREVENT INJURIES TO PEOPLE IN THE BUILDING THAT'S A QUESTION WITHOUT A CLEAR ANSWER FOR THAT REASON MANY PLAINTIFFS' LAWYERS SAID THEY WOULDN'T DECIDE WHETHER TO SUE UNTIL INVESTIGATIONS OF THE INCIDENT SHOWED WHETHER THE PORT AUTHORITY MIGHT HAVE ACTED NEGLIGENTLY I'M SURE THAT WAS NO WALK IN THE PARK WALKING DOWN 110 FLIGHTS BREATHING SMOKE AND WONDERING WHAT'S AROUND THE CORNER BUT THERE MUST BE A LACK OF REASONABLE CARE TO PREVAIL IN COURT SAID MARK MANUS OF THE NEW YORK PERSONALINJURY LAW FIRM HARRY H LIPSIG & PARTNERS MR MANUS SAID HE RECEIVED MORE THAN 20 PHONE CALLS YESTERDAY FROM VICTIMS OF THE BLAST DESPITE THE RETICENCE OF SOME LAWYERS ONE SUIT ALREADY IS ON ITS WAY TO COURT RAMDIAL SAHADEO A 27YEAROLD MANAGER OF THE UNDERGROUND PARKING GARAGE WHERE THE BOMB EXPLODED IS SUING THE PORT AUTHORITY I FRANKLY SEE IT AS A VERY SIMPLE CASE OF NEGLIGENCE WHERE THE RISK OF A BOMB WAS CLEARLY FORESEEABLE TO THE PORT AUTHORITY SAID MR SAHADEO'S LAWYER PAM LIAPAKIS OF SULLIVAN & LIAPAKIS MR SAHADEO IS SEEKING 750000 FOR HEAD AND OTHER UPPERBODY INJURIES AS WELL AS PSYCHOLOGICAL INJURIES HE ALLEGEDLY SUSTAINED HE CLAIMS THAT THE PORT AUTHORITY DIDN'T MAKE ADEQUATE PROVISIONS FOR EMERGENCY COMMUNICATIONS AND POWER SYSTEMS FAILED TO RESTRICT PUBLIC ACCESS TO THE GARAGE AND IGNORED THE RECOMMENDATIONS OF AN ANTITERRORIST TASK FORCE REPORT ABOUT EIGHT YEARS AGO THAT FOUND THE COMPLEX VULNERABLE MS LIAPAKIS SAID EMPLOYEES OF HER FIRM SPENT MUCH OF YESTERDAY IN FRUSTRATION TRYING TO FIND PORT AUTHORITY OFFICIALS ON WHOM TO SERVE COURT PAPERS THE PORT AUTHORITY LIKE OTHER TENANTS OF THE TRADE CENTER HAS BEEN DISPLACED FROM ITS OFFICES I'VE GOT 10 PEOPLE OUT IN THE FIELD TRYING TO FIND OUT WHERE TO SERVE THE AUTHORITY WITH NOTICE OF THE CASE MS LIAPAKIS SAID I'M GOING TO THROW IT AT THE WORLD TRADE CENTER IN ANOTHER MINUTE JEFFREY GREEN GENERAL COUNSEL FOR THE PORT AUTHORITY SAID MS LIAPAKIS'S SUIT IS PART OF THE TRAGEDY AS FAR AS I'M CONCERNED HE CALLED IT INCREDIBLE THAT AT LEAST ONE LAW FIRM HAS TAKEN THE TIME TO DIVERT THE ATTENTION OF OUR STAFF BY FILING A NOTICE OF CLAIM ALLEGING ALL OF THESE THINGS MR GREEN SAID THE PERPETRATORS OF THE BOMBING AND NOT THE AUTHORITY WERE TO BLAME FOR THE DAMAGE THE AMERICAN LEGAL SYSTEM IS REALLY BASED ON NEGLIGENCE AND IT'S HARD FOR US TO SEE WHERE THERE IS NEGLIGENCE IN THIS SITUATION HE ADDED LAWYERS NOT INVOLVED IN THE CASE ALSO CRITICIZED THE FILING OF LAWSUITS BEFORE ANY CLEAR EVIDENCE EMERGED ABOUT WHAT CAUSED THE DISASTER I THINK THAT THIS QUICK LAWSUIT IS ANOTHER EXAMPLE OF THE EXCESSIVE RELIANCE ON THE COURTS TO SOLVE PROBLEMS SAID MR PRIEST THE YALE PROFESSOR WHO'S REALLY GOING TO BE HELPED BY A LAWSUIT FILED TWO DAYS AFTER THE BOMB GOVERNMENT AGENCIES ARE USUALLY IMMUNE FROM LIABILITY FOR THEIR POLICYRELATED DECISIONS BUT NOT WHEN THEY ARE ENGAGING IN FORPROFIT ACTIVITIES SUCH AS THE LEASING OF A BUILDING AS A RESULT THE PORT AUTHORITY COULD BE HELD RESPONSIBLE IF A JURY DECIDES IT DIDN'T DO ENOUGH TO PROTECT TRADECENTER TENANTS PREVIOUS CASES IN NEW YORK AND OTHER STATES HAVE SOMETIMES HELD LANDLORDS RESPONSIBLE FOR OTHER PEOPLE'S CRIMINAL ACTS MEANWHILE THE CENTER'S TENANTS HAVE BEGUN TURNING TO THEIR OWN INSURANCE COMPANIES SEEKING COVERAGE FOR BUSINESS THEY ARE LOSING AS CLEANUP AND INVESTIGATION EFFORTS CONTINUE TO BAR THEM FROM ENTERING THEIR OFFICES PORT AUTHORITY OFFICIALS SAID THEY PROBABLY HAVE ENOUGH INSURANCE TO COVER THE ULTIMATE COSTS OF THE BLAST THE AUTHORITY HAS 600 MILLION OF PROPERTY COVERAGE ON THE WORLD TRADE CENTER AND 400 MILLION OF LIABILITY COVERAGE EACH WITH ONLY SMALL DEDUCTIBLES ACCORDING TO STANLEY BREZENOFF EXECUTIVE DIRECTOR OF THE AUTHORITY INSURANCE GENERALLY COVERS DAMAGES RESULTING FROM TERRORIST ACTS BUT NOT FOR ACTS OF WAR A NUMBER OF INSURANCE COMPANIES PARTICIPATE IN THE POLICIES THAT COVER THE WORLD TRADE CENTER AND THE PORT AUTHORITY AMERICAN INTERNATIONAL GROUP INC HOME INSURANCE CO AND RELIANCE GROUP ALL IN NEW YORK ARE AMONG THOSE INVOLVED IN PROPERTY COVERAGE ACCORDING TO SOURCES FAMILIAR WITH THE COVERAGE ANOTHER COMPANY PHILADELPHIABASED CIGNA HAS SIGNIFICANT EXPOSURE AND MIGHT ANNOUNCE ITS LOSSES BY THE END OF THE WEEK A SPOKESMAN SAID LLOYD'S OF LONDON ALSO HAS SOME EXPOSURE A LLOYD'S SPOKESMAN SAID A SIXMEMBER NEW YORK STATE COURT JURY DECIDED IN FAVOR OF COOPERS & LYBRAND IN AN 11YEAROLD LAWSUIT DEMANDING 28 MILLION IN DAMAGES AND INTEREST FROM THE FIFTH BIGGEST US ACCOUNTING FIRM THE VICTORY LATE FRIDAY HIGHLIGHTS A TREND IN WHICH JUDGES AND JURIES APPEAR TO BE HEEDING ACCOUNTANTS' COMPLAINTS THAT THEY ARE BEING UNFAIRLY SINGLED OUT AS THE DEEP POCKET FOR TROUBLED COMPANIES WHOSE BOOKS THE ACCOUNTANTS AUDIT COOPERS WAS SUED BY THE TEACHERS' INSURANCE & ANNUITY ASSOCIATION INVOLVING LOANS OF 12 MILLION MADE IN 1978 BY THE ASSOCIATION TO NOWDEFUNCT COMBUSTION EQUIPMENT ASSOCIATES INC NEW YORK THE LAWSUIT FILED IN 1982 ALLEGED THAT COOPERS COMMITTED FRAUD BY GIVING A CLEAN OPINION TO THE 1978 FINANCIAL RESULTS OF COMBUSTION EQUIPMENT WHICH SOUGHT BANKRUPTCYCOURT PROTECTION IN 1980 AND COLLAPSED SOON THEREAFTER WHILE THE JURY IN THE COMBUSTION EQUIPMENT CASE CONCLUDED THAT COOPERS WAS INVOLVED IN MATERIAL MISSTATEMENTS IN COMBUSTION EQUIPMENT'S 1978 RESULTS IT DECIDED COOPERS HADN'T COMMITTED FRAUD IN NEW YORK STATE BECAUSE OF PREVIOUS STATE COURT DECISIONS FRAUD MUST BE SHOWN TO ESTABLISH CLAIMS INVOLVING ALLEGEDLY FAULTY AUDITS OF TROUBLED COMPANIES MARTIN L PERSHETZ A PARTNER IN THE NEW YORK LAW FIRM SCHULTE ROTH & ZABEL WHICH REPRESENTED COOPERS SAID COOPERS MET PROFESSIONAL AUDITING STANDARDS AND DIDN'T INTEND TO DECEIVE USERS OF COMBUSTION EQUIPMENT'S FINANCIAL STATEMENTS MATTHEW GLUCK A PARTNER OF FRIED FRANK HARRIS SHRIVER & JACOBSON WHICH REPRESENTED THE ASSOCIATION SAID THE PLAINTIFF WAS CONSIDERING ALL ITS OPTIONS BUT HADN'T YET DECIDED WHETHER TO APPEAL FORMER SECRETARY OF STATE JAMES A BAKER III IS JOINING THE LAW FIRM OF HIS FATHER AND GRANDFATHER AND GREAT GRANDFATHER WHEN MR BAKER GRADUATED FROM LAW SCHOOL IN 1957 HIS FATHER WAS STILL AT THE FIRM HOUSTONBASED BAKER & BOTTS SO DESPITE THE MULTIGENERATIONAL LINK BETWEEN FIRM AND FAMILY STRETCHING BACK TO 1872 THE FIRM DECIDED THAT ITS MODERN NEPOTISM POLICY PRECLUDED THE YOUNGER MR BAKER FROM JOINING WHEN YOU ASK TODAY WHO WAS INVOLVED IN THAT DECISION YOU DON'T FIND MANY PEOPLE STEPPING FORWARD SAYS CURRENT MANAGING PARTNER E WILLIAM BARNETT MR BAKER INSTEAD BUILT A CAREER AT A COMPETING HOUSTON LAW FIRM ANDREWS & KURTH WHERE HE DEVELOPED A SUCCESSFUL CORPORATE PRACTICE HE LEFT IN 1981 TO BECOME THENPRESIDENT REAGAN'S CHIEF OF STAFF HE ALSO SERVED AS SECRETARY OF THE TREASURY AND THEN UNDER PRESIDENT BUSH AS SECRETARY OF STATE ANDREWS & KURTH MANAGING PARTNER T RUSH MOODY JR SAID HIS FIRM TRIED VERY HARD TO GET MR BAKER BACK IN OUR DISCUSSIONS HE PUT IT TO ME THAT THE CALL OF THE FAMILY WAS ONE HE HAD TO RESPOND TO THAT'S PERFECTLY UNDERSTANDABLE MR MOODY SAID AT BAKER & BOTTS WHERE HIS SON IS NOW ALSO A PARTNER MR BAKER WON'T LOBBY ANY FEDERAL AGENCY OR OFFICIAL AND WON'T REPRESENT FOREIGN GOVERNMENTS HE ALSO WON'T PRACTICE LAW FULL TIME MR BAKER INTENDS TO WORK ON A BOOK AND REMAIN ACTIVE IN PUBLICPOLICY ISSUES ACCORDING TO THE FIRM WHAT HE WILL DO AS AN ATTORNEY REMAINS LESS CERTAIN MR BARNETT SAID HE EXPECTS MR BAKER TO COUNSEL PEOPLE ON LARGE MATTERS INVOLVING INTERNATIONAL PRACTICE BUT ALSO ON LARGE FINANCIAL TRANSACTIONS THAT HIS EXPERIENCE AT TREASURY EQUIPPED HIM TO DO MR BAKER COULDN'T BE REACHED FOR COMMENT MR BAKER A SENIOR PARTNER WILL BE AMONG THE HIGHEST PAID PARTNERS AT THE 400LAWYER FIRM ACCORDING TO MR BARNETT WHO DECLINED TO ELABORATE ON MR BAKER'S COMPENSATION WASHINGTON MOVE HOWARD L HILLS FORMER VICE PRESIDENT AND GENERAL COUNSEL OF THE OVERSEAS PRIVATE INVESTMENT CORP JOINED THE NEW YORK LAW FIRM STROOCK & STROOCK & LAVAN ON AN OF COUNSEL BASIS MR HILLS WILL FOCUS ON INTERNATIONAL BUSINESS AND GOVERNMENTAL AFFAIRS IN THE FIRM'S WASHINGTON OFFICE LEE BERTON CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR FILING A SUIT AGAINST FATE WSJ APRIL 2 1993 9303020003 9304060093 930316 BUSINESS WORLD MOTORISTS OPTING FOR PREMIUM AT THE PUMP BY TIM W FERGUSON AN EFFORT BY POLITICIANS TO RAISE THE GAS TAX BY 30 CENTS OR MORE A GALLON HAS ROUSED CALIFORNIANS MANY IN SUPPORT THE REASON IS THAT THE LEVY ALONG WITH ADDITIONAL FEES ON DRIVER LICENSES AND VEHICLE REGISTRATION WOULD TAKE CARE OF BASIC CAR INSURANCE AUTO POLICY PREMIUMS ARE A BIG DEAL IN CALIFORNIA AND SEVERAL OTHER STATES COSTING SAFE DRIVERS WELL OVER 1000 A YEAR AND FURTHER ANGERING THEM BY LEADING A LOT OF OTHER MOTORISTS TO BE ON THE ROAD WITHOUT INSURANCE THE SYSTEM HAS BROKEN DOWN AND THE PUBLIC AWKWARDLY HAS BEEN DEMANDING THAT IT BE FIXED IN CALIFORNIA VOTERS STRUCK OUT WILDLY IN 1988 APPROVING A PREMIUMROLLBACK INITIATIVE THAT LATER WAS GUTTED BY THE COURTS AS A DENIAL OF INSURER RIGHTS SUSPICION OF THE BIG PROPERTYCASUALTY COMPANIES REMAINS HIGH THOUGH THE ANTAGONISM MOSTLY HAS SETTLED INTO A STABLEPRICE STANDOFF IN THE NEARLY FIVE YEARS SINCE PASSAGE OF PROPOSITION 103 NOW STATE SEN ART TORRES AN URBAN DEMOCRAT AND STATE INSURANCE COMMISSIONER JOHN GARAMENDI WHO POSTURES AS A POPULIST HAVE TEAMED BEHIND THE PAYATTHEPUMP IDEA IT DRAWS ON A BLUEPRINT BY ECONOMIC JOURNALIST ANDREW TOBIAS IN HIS ENGAGING BOOKLET AUTO INSURANCE ALERT IT BOLDLY SEEKS TO CUT LAWYERS AND INSURANCE AGENTS OUT OF THE HUSTLE AS A WAY TO REDUCE COSTS AND IMPROVE COVERAGE FOLLOWING MR TOBIAS'S STYLE SEN TORRES HAS UNDERTAKEN AN UNUSUAL DIRECT MARKETING OF THE BILL TO THE PUBLIC THE SECOND OF TWO INFORMATIONAL HEARINGS IS TO BE BROADCAST TOMORROW IF THE PLAN IS STYMIED IN THE LEGISLATURE THE PATH WILL BE BROKEN FOR AN INITIATIVE DRIVE THE TAX APPARENTLY NEEDS APPROVAL BY THE VOTERS AT SOME POINT IN ANY CASE MR TORRES LIKES THE POLITICAL HIGH WIRE AND IN HIS RISE FROM EAST LOS ANGELES HAS HAD NOTABLE FALLS IRONICALLY IT WAS A SERIES OF DRUNK DRIVING CASES IN THE LATE 1980S THAT MOST HURT HIS REPUTATION AFTER THE LAST ONE HE ADMITTED ALCOHOLISM TODAY HE DOUBTLESS HAS STATEWIDE AMBITIONS AGAIN AND CHAIRING A LEGISLATIVE INSURANCE COMMITTEE MAKES THIS HIS ISSUE GIVEN PUMPPAY'S BACKERS WHICH INCLUDE THE REGULATIONLOVING CONSUMERS UNION ONE MIGHT SUSPECT A BIGGOVERNMENT PLOY TO BE SURE SOME SOCIAL TRANSFERS ARE INVOLVED AND AUTHOR TOBIAS DOESN'T TRY TO HIDE THEM BUT THE FACT IS THAT WITH MR TORRES'S SHOWMANSHIP THIS IS ABOUT THE ONLY REFORM IN PLAY CALIFORNIA REPUBLICANS PUNTED ON BRINGING A NOFAULT INITIATIVE TO THE VOTERS LAST YEAR AFTER ONE WAS BEATEN THE YEAR OF PROP 103 DESPITE A HUGELY EXPENSIVE CAMPAIGN NOFAULT IS PART OF THE TOBIASTORRES PLAN EVERYBODY WOULD BE COVERED FOR PHYSICAL INJURIES AND BASIC AUTO REPAIR ABOVE A MINOR DEDUCTIBLE OR COPAYMENT THERE'D BE NO SUING TO COLLECT ANY PAIN AND SUFFERING RELIEF AND LIKE NEW FIXES WHICH NOW CONSTITUTE MAYBE A FOURTH OF INSURANCE COSTS WOULD BE UP TO AN INDIVIDUAL TO ARRANGE SAME WITH THEFT INDEMNITY AS FOR THE BASICS THE PRIVATE SECTOR WOULD BID FOR CONTRACTS TO HANDLE BLOCKS OF RANDOMLY ASSIGNED DRIVERS IN THIS CORE MARKET THERE'D BE NO CHOICE OF CARRIER AND THEREFORE NO NEED FOR AGENTS AND OTHER SELLING EXPENSES OVER TIME THE LEVEL OF THE PUMP TAX WOULD DEPEND ON HOW FAVORABLE THE BIDS WERE IN OTHER WORDS HOW EFFICIENTLY THE SETUP WORKED A TOBIAS SYSTEM POINTS TO AN INSURANCE INDUSTRY MODELED AFTER RELATIVELY LOWCOST HIGHPRODUCTIVITY CARRIERS SUCH AS 20TH CENTURY AND MERCURY GENERAL IN CALIFORNIA THEY DON'T HAVE AGENTS TO HOLD THE HANDS OF PROBLEM CUSTOMERS UNDER PUMPPAY THE HANDLING OF ALL INSUREDS BECOMES MORE ROUTINE AND IMPERSONAL EVEN AT THE BESTRUN INSURERS PRESENT PROCEDURES MAGNIFY THE EXPENSE OF AUTO POLICIES SOMEONE INJURED IN AN ACCIDENT TYPICALLY IS ABLE TO COLLECT FROM HIS OWN COMPANY AND THEN GET A DUPLICATE SETTLEMENT FROM ANY CARRIER OF THE PARTY AT FAULT QR07000516PAIN AND SUFFERING AWARDS COME ON TOP OF THAT FEARFUL OF LAWSUITS INSURERS OFTEN ISSUE CHECKS LIBERALLY WHILE AT THE SAME TIME SERIOUSLY HURT INDIVIDUALS MAY NEVER BE MADE EVEN PERVERSE INCENTIVES WITHIN THE PROCESS CONTRIBUTE TO WHAT THE PUBLIC PERCEIVES AS CAPRICIOUSNESS BUT WRONGLY SEES AS OUTRAGEOUS PROFITABILITY ONE THING INSURANCE COMPANIES ARE SUPPOSED TO DO AT THE RISK OF BEING POLITICALLY INCORRECT IS TO ASSIGN ACTUARIAL ODDS AND CHARGE ACCORDINGLY THE TOBIAS SCHEME ATTEMPTS TO APPROXIMATE THIS FIRST THOSE WHO DRIVE A LOT ARE MORE SUSCEPTIBLE TO ACCIDENTS AND WILL BE BUYING MORE GAS PREMIUMS WOULD BE ADDED TO TRAFFIC TICKETS THAT REFLECT A PROPENSITY TO DRIVE UNSAFELY AT LICENSING WHATEVER DEMOGRAPHIC CODES ARE CONSIDERED APPROPRIATE COULD BE USED TO ADD FEES TO REFLECT EXPECTED PAYOUTS LIKEWISE AT REGISTRATION FAST OR OTHERWISE RISKY VEHICLES WOULD BE HIT WITH A SURCHARGE LOTS OF WRINKLES APPEAR BUT MOST ARE MINOR OR CAN BE SMOOTHED THROUGH TAX CREDITS THE BIGGEST PROBLEM IS WHEN STATE LINES ARE CROSSED TO BUY GAS OR TRAVEL IN TIGHTLY LINKED STATES A TOBIAS PLAN MAY BE UNWORKABLE WITHOUT A REGIONAL PACT BUT IN CALIFORNIA WHERE FEW LIVE NEAR ANOTHER STATE'S BORDER THAT'S NOT SO MUCH OF A HURDLE TEXAS IS ANOTHER GOOD CANDIDATE MR TOBIAS ACKNOWLEDGES THAT HE INTENDS A BREAK FOR USERS OF FUELEFFICIENT CARS WHICH COULD BE DRIVEN LONG DISTANCES AND YET PAY ONLY MODESTLY FOR INSURANCE AT THE PUMP HE ARGUES FOR THIS ON UNRELATED GROUNDS BUT WRITES THAT IF THIS SUBSIDY IS OBJECTIONABLE REBATES COULD BE USED HERE TOO TO CUSHION THE EFFECT ON GAS GUZZLERS HIS BOOKLET IS A GOODHUMORED EFFORT AT ANTICIPATING OPPOSITION AND SQUELCHING IT WHILE ADMITTING THAT SOME WHO MAKE A GOOD LIVING OFF THE EXISTING SYSTEM WOULD LOSE THE LEGISLATION MAY TURN OUT DIFFERENTLY OF COURSE AS IT IS MASSAGED BY VARIOUS INTEREST GROUPS REPUBLICANS ARE RAISING VALID QUESTIONS ABOUT HOW BENEFIT COSTS WOULD BE CONTAINED GIVEN THE WIDE ACCESS THE PLAN ACCORDS MANY DEMOCRATS CLEARLY ENVISION THIS AS ONE PART OF A GRAND MANAGEDCARE HEALTH SYSTEM LOSS OF CONSUMER CHOICE TO A MAMMOTH STATEWIDE APPARATUS IS ALSO DECRIED BUT THAT CHOICE IS A HOLLOW ONE EVEN FOR THE MOST CONSCIENTIOUS OF MOTORISTS IT'S A BIT SIMILAR TO THE SELECTION THAT TENANTS HAVE UNDER APARTMENT RENT CONTROL EMPTY TOO IS THE LIBERTARIAN ARGUMENT AGAINST COMPELLING PURCHASE OF INSURANCE WITH REPAIR AND MEDICAL BILLS REFLECTING THE RATES THAT INSURERS PAY FEW PEOPLE WOULD FIND IT PRUDENT TO GO IT ALONE ON THE BASICS ONE IS WARY OF BUSINESS BASHERS AND THE SMARTYPANTS SET WHO THINK THEY CAN ALWAYS IMPROVE ON THE WAY MARKETS WORK BUT THE INSURANCE MARKET IS NOT WORKING IN CALIFORNIA AND OTHER PLACES WHERE LAW AND PRACTICE HAVE HOPELESSLY FOULED IT UP THEORETICALLY IT WOULD BE BEST TO PAINSTAKINGLY DISMANTLE THE BARRIERS TO CONSUMER SOVEREIGNTY BUT THE ELECTORATE IS GRASPING FOR A PLAUSIBLE SHORTTERM REMEDY AND MESSRS TOBIAS TORRES AND GARAMENDI ARE POISED AT THE PUMP CALIFORNIA FOR ITS PART MAY BE READY TO FILL UP SEE RELATED LETTER LETTERS TO THE EDITOR PLAN WOULD SUBSIDIZE WORST AUTO DRIVERS WSJ APRIL 2 1993 9303160088 9304060092 930311 REVIEW & OUTLOOK EDITORIAL WHO IS WEBSTER HUBBELL II WHILE THE COURT TAKES NO PLEASURE IN DETERMINING THAT ONE OF THE FIRST ACTIONS TAKEN BY A NEW PRESIDENT IS IN DIRECT VIOLATION OF A STATUTE ENACTED BY CONGRESS THE COURT'S DUTY IS TO APPLY THE LAW TO ALL INDIVIDUALS SO SAID US DISTRICT COURT JUDGE ROYCE C LAMBERTH YESTERDAY IN RULING ON THE FEDERAL ADVISORY COMMITTEE ACT'S APPLICATION TO HILLARY RODHAM CLINTON'S HEALTH COMMISSION HE DECIDED THAT THE ACT'S REQUIREMENT OF OPEN MEETINGS AND OTHER FORMALITIES APPLIED TO SOME MEETINGS OF THE COMMISSION AND ITS SUBGROUPS BUT THAT FOR OTHER MEETINGS THESE REQUIREMENTS WERE UNCONSTITUTIONAL THE WHITE HOUSE NOW SEEMS TO BE SAYING THAT THERE WERE NO FORMAL MEETINGS THAT THE MUCH HERALDED COMMISSION DOESN'T EXIST THE ADMINISTRATION HAS HOWEVER DROPPED ITS FORMER CONTENTION THAT MRS CLINTON IS THE FUNCTIONAL EQUIVALENT OF A FEDERAL EMPLOYEE NO DOUBT MRS CLINTON'S LEGAL TANGLES WHICH INVOLVE NOT ONLY THE JUDGE'S MIXED RULING ON FACA BUT ALSO THE HISTORIC ANTIDEFICIENCY ACT AND THE KENNEDY ANTINEPOTISM BILL CAN AND SHOULD SOMEHOW BE SET STRAIGHT YET IT COULD SCARCELY BE CLEARER THAT THE CLINTON CREW HAS BEEN ENGAGED IN THE KIND OF LEGAL CORNERCUTTING THAT LEADS TO TROUBLE ATTORNEY GENERAL NICHOLAS KATZENBACH ONCE OFFERED THE FAMOUS DECLARATION THAT THE GULF OF TONKIN RESOLUTION WAS THE FUNCTIONAL EQUIVALENT OF A DECLARATION OF WAR APPARENTLY BACK WHEN TODAY'S ADMINISTRATION LAWYERS WERE POLITICALLY PREPUBESCENT AND WE WONDER HOW ZOE BAIRD AND JUDGE KIMBA WOOD TAKE THE SUGGESTION THAT IN KEEPING THE PUBLIC IN THE DARK ABOUT HER DELIBERATIONS MRS CLINTON HAS VIOLATED THE LAW CLEARLY THIS ADMINISTRATION NEEDS SOME LEGAL ADVICE WHICH BRINGS US TO JANET RENO WHOSE NOMINATION AS ATTORNEY GENERAL IS ROLLING THROUGH A SENATE GLAD TO BE RID OF SO VEXSOME A MATTER IN THE CLOISTERED EXISTENCE OF THE HOME HER MOTHER BUILT WITH HER OWN HANDS MS RENO HAS NEVER HIRED AN ILLEGAL ALIEN HER VIEWS AREN'T EXACTY OUR CUP OF TEA BUT WE BELIEVE PRESIDENTS GET TO APPOINT THEIR OWN OFFICIALS SO WE SEE NO PARTICULAR REASON TO OPPOSE HER INDEED WE'D BE A LOT MORE COMFORTABLE IF WE WERE REALLY SURE THAT ONCE CONFIRMED SHE'LL BE RUNNING THE JUSTICE DEPARTMENT ON THIS SCORE WE WERE FAR FROM REASSURED BY MS RENO'S RESPONSES TO QUESTIONS ABOUT THE PECULIAR BEHAVIOR OF THE JUSTICE DEPARTMENT IN THE CORRUPTION TRIAL OF REP HAROLD FORD IN MEMPHIS SEE EXCERPTS OF HER TESTIMONY NEARBY AS WE DESCRIBED MARCH 2 A US ATTORNEY RESIGNED AND THE PRESIDING JUDGE ISSUED A BLISTERING DENIAL WHEN JUSTICE SWITCHED ITS POSITION TO ASK THAT THE JURY BE DISMISSED ACTING ATTORNEY GENERAL STUART GERSON ORDERED THE REVERSAL AFTER A MEETING WITH THE CONGRESSIONAL BLACK CAUCUS WHILE MR GERSON IS A BUSH ADMINISTRATION HOLDOVER THE MEETING WAS ENGINEERED BY THE JUSTICE DEPARTMENT'S SPANKINGNEW LIAISON WITH THE WHITE HOUSE WEBSTER L HUBBELL MR HUBBELL IS A FORMER MAYOR OF LITTLE ROCK AND A PARTNER WITH MRS CLINTON IN THE ROSE LAW FIRM THERE AT ONE POINT IN HIS CAREER AT THE APPOINTMENT OF GOVERNOR CLINTON HE SERVED ONE YEAR AS CHIEF JUSTICE OF THE ARKANSAS SUPREME COURT WHILE HE APPARENTLY PLANS TO STAY ON AT JUSTICE WE WILL NOT HAVE AN OPPORTUNITY TO LEARN IF HE'S HIRED AN ILLEGAL ALIEN SINCE HIS APPOINTMENT IS NOT SUBJECT TO SENATE CONFIRMATION ASKED ABOUT THE JUSTICE SWITCH IN THE MEMPHIS TRIAL MS RENO SAID SHE'D TALKED TO MR GERSON AND MR HUBBELL AND THOUGHT THEY WERE BOTH WONDERFUL MEN NO ONE TRIED TO INFLUENCE ANYONE THEY TOLD HER THE JUSTICE DEPARTMENT'S SWITCH QUICKLY REVERSED WAS AN IMPARTIAL READING OF THE LAW IN OTHER WORDS THERE'S NO ONE HERE BUT US CHICKENS AND MS RENO HAS CONCLUDED I DON'T SEE ANY FURTHER ACTION TO BE TAKEN ON IT THE FURTHER ACTION NEEDED IF WE CAN BE BLUNTER THAN IS COUTH FOR SENATORS IS TO CHOOSE BETWEEN TWO RESPECTABLE ALTERNATIVES ONE GET WEBSTER HUBBELL OUT OF THE CORRIDORS OF JUSTICE OR TWO GET HIM OUT IN THE LIGHT OF DAY THROUGH NOMINATION FOR A CONFIRMABLE POST IN PRIOR ADMINISTRATIONS WITHOUT THE PATINA OF DIVERSITY OR THE INCONVENIENCE OF ETHICS LAWS MR HUBBELL WOULD SURELY BE BILL CLINTON'S ATTORNEY GENERAL BUT IN AN ERA WHEN ZOE BAIRD AND KIMBA WOOD ARE TOO SUSPICIOUSLOOKING TO HOLD OFFICE A WEBSTER HUBBELL IS BETTER OFF PULLING STRINGS BEHIND THE SCENES OUR INCUMBENT MORALISTS SOMEHOW SEE NOTHING UNTOWARD HERE THOUGH THEY SURELY WOULD HAVE TURNED APOPLECTIC IF INSTEAD OF BEING NOMINATED AS ATTORNEY GENERAL ED MEESE HAD BEEN APPOINTED TO LOOK OVER THE ATTORNEY GENERAL'S SHOULDER LET ALONE IF HE HAD SET UP MEETINGS THAT TURNED AROUND JUSTICE'S POSITION ON A CORRUPTION TRIAL SO TO STATE THE OBVIOUS THE ISSUE WITH MR HUBBELL AND THE ISSUE WITH MRS CLINTON IS CALLED ACCOUNTABILITY IF YOU ARE GOING TO WIELD POWER YOU HAVE TO FOLLOW PROCEDURES SET UP TO ENSURE YOU TAKE PUBLIC RESPONSIBILITY FOR YOUR ACTIONS AND DECISIONS IT'S A PRINCIPLE WE TAKE IT NONE TOO SCRUPULOUSLY OBSERVED BY MORES CONDITIONED IN ARKANSAS SEE RELATED LETTER LETTERS TO THE EDITOR A GRATUITOUS SLAP WSJ APRIL 2 1993 9303110029 9304060086 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT HOLLYWORLD JUNKET JOURNALISM THE HOLLYWOOD FOREIGN PRESS ASSOCIATION DOESN'T BITE THE HAND THAT FEEDS IT BY DAVID J JEFFERSON BEVERLY HILLS CALIF THE PAPARAZZI ARE SNAPPING AWAY AS BASIC INSTINCT INGENUE SHARON STONE GLIDES INTO THE BEVERLY HILTON HOTEL'S INTERNATIONAL BALLROOM FOR THE GOLDEN GLOBE AWARDS AN ANNUAL SPECTACLE STARTED 50 YEARS AGO BY A STRUGGLING FOREIGN PRESS CORPS THAT HEARD THE CALL AWARD THEM AND THEY WILL COME BUT FOR MANY MEMBERS OF THE HOLLYWOOD FOREIGN PRESS ASSOCIATION THE GROUP THAT DECIDES WHETHER MS STONE WILL GO HOME WITH A STATUETTE OR JUST A PARTING GIFT THE REAL ATTRACTION IS IN A SEPARATE BALLROOM AT THE REAR OF THE HOTEL HERE THEY FEAST ON ROAST BEEF FISH FILLETS MACARONI SALAD AND BABY CARROTS AS THEY WATCH THE EVENING'S EVENTS UNFOLD ON BIGSCREEN TV SETS DON'T BELIEVE WHAT ANYBODY TELLS YOU SAYS ONE FEASTER YANI BEGAKIS A 33YEAR VETERAN OF THE HFPA AND FIVETIME PRESIDENT IT'S AN HONEST SHOW MR BEGAKIS SOME IN HOLLYWOOD SAY DOES PROTEST A BIT TOO MUCH AS HOLLYWOOD HAS AWAKENED TO THE PROFIT POTENTIAL OF FOREIGN MARKETS STUDIOS ARE SPENDING MORE TIME AND MONEY MINISTERING TO THE NEEDS OF THE FOREIGN JOURNALISTS WHO WRITE ABOUT HOLLYWOOD BUT PRIVATELY MANY STUDIO PUBLICISTS DISDAIN THE FOREIGNERS' MOST PROMINENT GROUP THE 87MEMBER HFPA AS A BUNCH OF FREELOADERS WHO SOMETIMES SEEM TO DOLE OUT PUBLICITY IN DIRECT PROPORTION TO THE AMOUNT OF FREEBIES THEY RECEIVE FOREIGN PRESS MEMBERS ARE KNOWN TO DEMAND PHOTOS OF THEMSELVES WITH STARS THEY INTERVIEW AND TO TAKE TABLE CENTERPIECES HOME FROM NEWS EVENTS YOU DON'T JUST DO A PRESS CONFERENCE COMPLAINS ONE PUBLICIST YOU HAVE TO FEED THEM MIRJANA VAN BLARICOM THE ASSOCIATION'S CURRENT PRESIDENT IS WELL AWARE OF THE GROUP'S REPUTATION BUT SHE HAS AN EXPLANATION THERE ARE JOURNALISTS WHO LOVE TO EAT SHE SAYS MANY ARE BACHELORS AND THEY SIMPLY HATE TO COOK MS VAN BLARICOM ALSO KNOWS THAT DESPITE THE BARBS STUDIOS ARE STILL QUITE WILLING TO CATER TO THE FOREIGN PRESS WE DO PUBLICITY AND IT DOESN'T COST THEM ANYTHING SHE SAYS WITH A CANDOR THAT MIGHT MAKE MANY AMERICAN JOURNALISTS CRINGE WE COMPLEMENT EACH OTHER THE ASSOCIATION'S CRITICS COULDN'T AGREE MORE IT HAS BEEN OVER A DECADE BUT THE ASSOCIATION IS STILL BEING ATTACKED FOR NAMING PIA ZADORA NEWCOMER OF THE YEAR AFTER HER HUSBAND MESHULAM RIKLIS WINED AND DINED THE FOREIGN PRESSS AT A LAS VEGAS FLOOR SHOW STARRING HIS WIFE WHAT DO THEY WANT FROM US BLOOD MR BEGAKIS LAMENTS IN HIS THICK EASTERN EUROPEAN ACCENT YET JUST HOURS AFTER SCENT OF A WOMAN SURPRISINGLY SWEPT THE 1993 AWARDS SHOW HOLLYWOOD WAS ABUZZ WITH TALK THAT THE ASSOCIATION HAD DONE IT AGAIN WORD SPREAD THAT BEFORE BALLOTS WERE CAST UNIVERSAL STUDIOS TOOK A GROUP OF ASSOCIATION MEMBERS ON A LUXURY JUNKET TO NEW YORK FOR AMONG OTHER THINGS INTERVIEWS WITH SCENT STAR AL PACINO MS VAN BLARICOM DISMISSES THE COMPLAINTS MEMBERS SHE SAYS VOTED IMPARTIALLY FOR SCENT OF A WOMAN JUST AS THEY DID IN 1982 FOR MS ZADORA I THOUGHT PIA ZADORA WAS A GOOD CHOICE SHE'S A TREMENDOUS PERFORMER MS VAN BLARICOM SAYS THE FACT THAT SHE MARRIED A RICH HUSBAND IS NOBODY'S BUSINESS TO BE SURE THERE ARE PLENTY OF US JOURNALISTS WORKING FOR SMALL PUBLICATIONS WHO ACCEPT FREE PLANE FLIGHTS AND HOTEL ROOMS AND THEN GLADLY WRITE GLOWING REVIEWS AND INTERVIEWS IN ADDITION THE HFPA DOESN'T REPRESENT ALL FOREIGN JOURNALISTS COVERING THE MOVIE AND TELEVISION PRODUCTION BUSINESS ONE NONMEMBER SUMS IT UP FOR MANY WHO DON'T CHOOSE TO JOIN NO ONE WHO'S WORKING BELONGS TO THE HOLLYWOOD FOREIGN PRESS ASSOCIATION SAYS JILL EVANS A HOLLYWOOD REPORTER FOR THE BRITISH DAILY MIRROR PUBLICATIONS MS VAN BLARICOM BEGS TO DIFFER SHE SAYS SHE HAS WRITTEN FOR SEVERAL PUBLICATIONS IN THE FORMER YUGOSLAVIA AND CREDITS HER FATHER WITH PRODUCING THAT COUNTRY'S FIRST TALKIE SHE DISMISSES CRITICISM FROM NONMEMBERS AS PETTY BACKBITING EVERYWHERE YOU HAVE ENVY SHE SAYS STILL MS VAN BLARICOM TALKS OF DRAWING LIFEBLOOD INTO THE ASSOCIATION'S RANKS INCREASING NEW MEMBERSHIP FROM THE CURRENT FIVEAYEAR LIMIT AND BRINGING IN WRITERS FROM MORE PRESTIGIOUS PUBLICATIONS TO JOIN YOU HAVE TO HAVE 10 ARTICLES PUBLISHED IN A YEAR FINANCIAL PROOF THAT YOU ARE A WORKING JOURNALIST AND YOU HAVE TO HAVE LIVED HERE IN THE US FOR TWO YEARS SHE SAYS EVERY DAY WE HAVE CALLS WE COULD TAKE 2000 PEOPLE A YEAR IT'S CLEAR WHAT ATTRACTS AT LEAST SOME OF THESE APPLICANTS ASSOCIATION MEMBERS TEND TO GET BETTER TREATMENT THAN OTHER FOREIGN JOURNALISTS STUDIOS HOLD SPECIAL PRESS CONFERENCES FOR MEMBERS OF THE HFPA MAKING CELEBRITIES AVAILABLE FOR ROUNDTABLE INTERVIEWS AND PHOTOGRAPHS WITH THE INTERVIEWERS IF TWO ASSOCIATION REPORTERS FROM THE SAME COUNTRY ATTEND THE SAME PRESS CONFERENCE THEY CONVENIENTLY AGREE NOT TO WRITE COMPETING STORIES WE'RE NOT CUTTHROAT MS VAN BLARICOM PROUDLY EXPLAINS THE ASSOCIATION DOESN'T HAVE AN OFFICIAL POLICY REGARDING WHO PAYS FOR MOVIE JUNKETS SOMETIMES THE GROUP WILL FOOT PART OF THE BILL BUT USUALLY THE STUDIOS PICK UP THE TAB IT MAKES A DIFFERENCE TO SOME MEMBERS THE STUDIOS PAY FOR FIRSTCLASS TICKETS BUT WHEN WE PAY WE FLY COACH SAYS SILVIA BIZIO WHO WRITES FOR ITALY'S LA REPUBLICA NEWSPAPER AND L'ESPRESSO MAGAZINE THE NUMBER OF JUNKETS INCREASES EXPONENTIALLY TOWARD THE END OF THE YEAR AS ASSOCIATION MEMBERS ARE BUSY VOTING ON THE GOLDEN GLOBES WHICH HAVE BECOME SOMETHING OF A WARMUP FOR THE MUCH MORE PRESTIGIOUS ACADEMY AWARDS AND A MARKETING TOOL IN THEIR OWN RIGHT STUDIOS THAT DON'T DO SPECIAL SCREENINGS OF THEIR FILMS ACCORDING TO THE GROUP'S TIMETABLE CAN MISS OUT ON A GILDED STATUETTE AND THE ACCOMPANYING GOODWILL IT CARRIES THROUGH OSCAR TIME WHATEVER REPUTATION HANGS OVER THE GROUP ON THE NIGHT GOLDEN GLOBES ARE AWARDED HOLLYWOOD TREATS THE ASSOCIATION LIKE THE REVERED INSTITUTION IT ASPIRES TO BE THE FOREIGN PRESS HAVE BEEN EXTREMELY GOOD TO ME SAYS A STATELY LAUREN BACALL AS SHE ACCEPTS THE 1993 CECIL B DE MILLE AWARD THE GOLDEN GLOBE EQUIVALENT OF A GOLD WATCH THE KUDOS DON'T GO UNNOTICED AS MS BACALL ENTERS AN ADJACENT BALLROOM TO MEET THE PRESS MARIANNE RUUTH THE ASSOCIATION'S SPOKESWOMAN WHO IS SHEPHERDING THE INTERVIEWS SLIPS ON THE PUMPS SHE DISCARDED EARLIER IN THE EVENING FOR LAUREN BACALL SHE SAYS I PUT ON MY SHOES MR JEFFERSON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU SILVIA BIZIO WHO WRITES FOR ITALY'S LA REPUBBLICA NEWSPAPER AND L'ESPRESSO MAGAZINE SAYS THAT WHEN MOVIE STUDIOS FLY FOREIGN JOURNALISTS ON JUNKETS THEY PAY FOR COACH TICKETS NOT FIRST CLASS AS SHE SAYS THEY DO FOR MANY IN THE DOMESTIC PRESS WHEN THE HOLLYWOOD FOREIGN PRESS ASSOCIATION PAYS ITS MEMBERS FLY COACH MS BIZIO SAYS A QUOTE ATTRIBUTED TO HER IN AN ARTICLE IN THE MARCH 26 WALL STREET JOURNAL SPECIAL REPORT ON GLOBAL ENTERTAINMENT INCORRECTLY IMPLIED THAT WHEN STUDIOS FLY FOREIGN JOURNALISTS ON JUNKETS THEY PAY FOR FIRSTCLASS TICKETS 9304060028 930316 LETTERS TO THE EDITOR NATURE'S BRUTAL POPULATION CONTROL IN YOUR FEB 9 PAGEONE ARTICLE WHEN CRITTERS GET WAY TOO COMMON BETTER WATCH OUT THE IMAGE OF GUNHAPPY REDNECKS SLAUGHTERING ANY ANIMALS UNFORTUNATE ENOUGH TO REPRODUCE IN SIGNIFICANT NUMBERS IS COMPELLING IF TRITE THE REAL ISSUE IS HOW TO MANAGE OUR NATION'S WILDLIFE RESOURCES IN A RESPONSIBLE AND EFFECTIVE WAY FACE IT WE'VE ELIMINATED THE PREDATORS IT IS THEREFORE OUR RESPONSIBILITY TO BALANCE NATURE AN EXAMPLE FROM AMERICAN HISTORY PROVIDES AN EXCELLENT ILLUSTRATION OF HOW WARMHEARTED GOOD INTENTIONS CAN LEAD TO DISASTER PRESIDENT THEODORE ROOSEVELT HIMSELF A NOTED HUNTER ARRANGED TO HAVE A LARGE PART OF THE KAIBAB PLATEAU IN THE GRAND CANYON AREA CLOSED TO HUNTING HE HAD BEEN IMPRESSED BY THE VERY LARGE MULE DEER HERD IN THE AREA AND WANTED TO PRESERVE IT FOR A WHILE EVERYTHING WORKED WELL AND THE POPULATION GREW EVENTUALLY THE DEER ATE THE FOLIAGE DOWN TO THE POINT THAT IT DID NOT GROW BACK THE NEXT SEASON FOR SEVERAL YEARS THERE WERE STARVING DYING DEER ON THE PLATEAU ROOSEVELT ARRANGED FOR HUNDREDS OF COWBOYS TO MOVE THE DEER TO BETTER FEEDING GROUNDS IT WAS A DISMAL FAILURE WITHOUT A SINGLE DEER SUCCESSFULLY MOVED THE CYCLE OF DEATH CONTINUED UNTIL THE HERD WAS DECIMATED AND THE POPULATION COULD BE SUSTAINED BY WHAT FOOD HAD BEEN ABLE TO REGROW MY POINT IS THAT WELLCONSIDERED WILDLIFE MANAGEMENT MUST INCLUDE POPULATION CONTROLS SOME OF THESE MAY SEEM UNPLEASANT TO OUR INCREASINGLY URBAN SOCIETY TELEVISION REINFORCES THE IMAGE OF LAZY STUPID REDNECK HUNTERS BLAZING AWAY WITH ASSAULT RIFLES SLAUGHTERING WHITETAILED DEER TO THE POINT OF EXTINCTION THE TRUTH IS THAT SINCE REGULATED HUNTING WAS INTRODUCED IN THE 1920S WHEN THE ENTIRE US WHITETAILED DEER POPULATION WAS ABOUT 300000 THEIR NUMBERS HAVE GROWN TO 20 MILLION THIS DESPITE THE MASSIVE REDUCTION IN WILDLIFE HABITAT AREA IN TEXAS HUNTING IS REGULATED ON THE BASIS OF FOOD SUPPLY AND MALE/FEMALE POPULATION ON A USUALLY COUNTY BY COUNTY BASIS THIS PROCESS ENSURES HEALTHY STABLE WILDLIFE POPULATIONS ON A PRACTICAL BASIS MOST OF THE MONEY FOR WILDLIFE CONSERVATION IN THE US COMES FROM HUNTING FEES AND LICENSES IF THE ANIMALRIGHTS MOVEMENT HAS A BETTER SOLUTION SOMEONE IS GOING TO HAVE TO FOOT THE BILL UNFORTUNATELY THESE GROUPS DON'T OFFER SOLUTIONS ONLY CRITICISM OF A VERY SUCCESSFUL SYSTEM THAT OFFENDS THEIR CITYBRED SENSIBILITIES SEE RELATED LETTER LETTERS TO THE EDITOR OUR WILDLIFE KILLING FIELDS WSJ APRIL 2 1993 9303160020 9304060005 930319 TREASURY NOMINEE SUMMERS SEES AID TO RUSSIA NEAR BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LAWRENCE SUMMERS WHO HAS BEEN NOMINATED TO BE THE TREASURY'S TOP INTERNATIONAL OFFICIAL SAID HE IS OPTIMISTIC THAT THE GROUP OF SEVEN NATIONS WILL BE IN A POSITION TO PROVIDE SIGNIFICANT SUPPORT FOR RUSSIAN REFORM EFFORTS IN THE COMING MONTHS MR SUMMERS'S COMMENTS IN HIS CONFIRMATION HEARING BEFORE THE SENATE FINANCE COMMITTEE CAME AS THE CLINTON ADMINISTRATION BEGAN A LOBBYING EFFORT TO CONVINCE THE PUBLIC OF THE WISDOM OF SENDING MORE AID TO RUSSIA AS THE NOMINEE TO BE UNDER SECRETARY OF THE TREASURY FOR INTERNATIONAL AFFAIRS MR SUMMERS HAS BEEN REPRESENTING THE TREASURY IN TALKS WITH OTHER G7 NATIONS AS THE POLITICAL SITUATION IN RUSSIA DETERIORATES THE CLINTON ADMINISTRATION HAS BEEN TRYING TO SIGNAL ITS SUPPORT FOR PRESIDENT BORIS YELTSIN AND THE FORCES FOR ECONOMIC REFORM SECRETARY OF STATE WARREN CHRISTOPHER TOLD REPORTERS YESTERDAY THAT BOTH AMERICA'S SECURITY AND THE SUCCESS OF THE CLINTON ECONOMIC PLAN ARE TIED TO THE SURVIVAL OF DEMOCRACY IN RUSSIA HE CONFIRMED THAT PRESIDENT CLINTON WILL BRING THE CASE FOR INCREASED RUSSIAN AID DIRECTLY TO THE AMERICAN PEOPLE IN COMING DAYS MR CHRISTOPHER ALSO SAID THAT EVEN RELATIVELY SMALL AMOUNTS OF MONEY CAN BE USEFUL IF THEY ARE FOCUSED ON THE RIGHT PROJECTS BUT HE ADDED THAT THE REAL BLOCKBUSTERS WOULD BE LARGE GRANTS FROM THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK AND HE SUGGESTED THAT BOTH INSTITUTIONS WILL NEED TO RELAX THEIR CRITERIA FOR LENDING TO RUSSIA MR SUMMERS'S WRITTEN TESTIMONY SAID RUSSIA IS PERILOUSLY CLOSE TO HYPERINFLATION AND UNLESS RUSSIA'S LEADERS CAN REASSERT MACROECONOMIC DISCIPLINE THE COUNTRY COULD GO THE WAY OF WEIMAR GERMANY OR THE JUNTA'S ARGENTINA AS HE READ THE TESTIMONY HOWEVER THE REFERENCE TO GERMANY AND ARGENTINA WAS REPLACED BY A VAGUE REFERENCE TO REAL RISKS BOTH THE CHAIRMAN OF THE COMMITTEE SEN DANIEL PATRICK MOYNIHAN D NY AND THE ONLY REPUBLICAN AT THE HEARING SEN JOHN CHAFEE R RI USED THE HEARING TO URGE US SUPPORT FOR RUSSIA IF IT REQUIRES COMING TO THIS CONGRESS FOR SOME MONEY SO BE IT SEN CHAFEE SAID THE NOMINATION OF MR SUMMERS A HARVARD UNIVERSITY PROFESSOR AND MOST RECENTLY CHIEF ECONOMIST AT THE WORLD BANK HAS DRAWN FIRE FROM ENVIRONMENTALISTS WHO HELPED PREVENT HIM FROM BECOMING CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS ALTHOUGH SEVERAL ENVIRONMENTAL GROUPS HAVE BEEN LOBBYING AGAINST THE NOMINATION ONLY ONE TESTIFIED YESTERDAY JANE PERKINS PRESIDENT OF FRIENDS OF THE EARTH SAID THE TREASURY POST SHOULDN'T GO TO AN ECONOMIST AT ALL BUT TO A THINKING BUT FEELING PERSON WITH A SENSE OF JUSTICE SHE TERMED MR SUMMERS TOO NARROW FOR THE JOB AND SAID GIVING THE POST TO HIM WOULD SEND A TERRIBLE SIGNAL TO DEVELOPING COUNTRIES MR SUMMERS AGAIN DREW CRITICISM YESTERDAY FOR A SARCASTIC SECTION OF A WORLD BANK MEMO HE SIGNED THAT IN PART DESCRIBED SECTIONS OF AFRICA AS UNDERPOLLUTED AND TALKED ABOUT THE ECONOMIC LOGIC OF SHIPPING TOXIC WASTE TO LOWWAGE COUNTRIES MR SUMMERS DESCRIBED THE MEMO AS A MISTAKE AND SAID IT DIDN'T REFLECT HIS OR THE WORLD BANK'S VIEWS THE ISSUE ISN'T EXPECTED TO INTERFERE WITH HIS CONFIRMATION I TOO WAS DISTURBED BY THE MEMO SEN CHAFEE TOLD MS PERKINS YET YOU GET TO THE POINT WHERE YOU CAN FORGIVE SOMEBODY DR SUMMERS WAS CONTRITE A SPOKESMAN FOR GREENPEACE WHICH STILL OPPOSES MR SUMMERS'S NOMINATION SAID IT WAS ENCOURAGED BY SOME OF HIS TESTIMONY YESTERDAY PARTICULARLY HIS VOW TO LOOK BEYOND WALL STREET TO ENVIRONMENTAL AND ANTIPOVERTY GROUPS IN FILLING US POSITIONS AT THE WORLD BANK AND INTERNATIONAL MONETARY FUND CARLA ANNE ROBBINS IN WASHINGTON CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTERS LETTERS TO THE EDITOR ENVIRONMENTAL MORALIST DEHUMANIZE ECONOMIST WSJ APRIL 2 1993 9303190159 9304050184 930405 WHO'S NEWS ALPHA MICROSYSTEMS ALPHA MICROSYSTEMS SANTA ANA CALIF JOHN C BALL WAS ELECTED A DIRECTOR OF THIS MAKER OF MULTIUSER COMPUTER HARDWARE AND SOFTWARE PRODUCTS INCREASING THE BOARD TO NINE MEMBERS MR BALL 57 YEARS OLD IS OWNER OF JBL/NEW ENGLAND LTD AN INVESTMENT ADVISORY FIRM BASED IN CONCORD MASS 9304050183 930405 WHO'S NEWS OXFORD HEALTH PLANS SHUFFLES MANAGEMENT AS PRESIDENT RESIGNS DARIEN CONN OXFORD HEALTH PLANS INC IN A MANAGEMENT SHAKEUP HIRED A NEW EXECUTIVE VICE PRESIDENT AND SAID ITS PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED THE TWO PERSONNEL MOVES AMOUNT TO A RETOOLING TO GET US READY FOR FASTER GROWTH AND MORE AGGRESSIVE COST CONTROL SAID STEVEN WIGGINS OXFORD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER OXFORD IS A HEALTHMAINTENANCE ORGANIZATION WITH ABOUT 140000 MEMBERS THE DEPARTURE OF OXFORD'S PRESIDENT MICHAEL T KORNETT COMES JUST EIGHT MONTHS AFTER HE JOINED THE COMPANY THE 49YEAROLD MR KORNETT WAS TRAVELING AND WASN'T AVAILABLE FOR COMMENT SECURITIES ANALYSTS SAID THE SHAKEUP AMOUNTED TO A SECOND ATTEMPT BY OXFORD TO FIND A HANDSON OPERATING MANAGER WHO COULD SERVE AS THE COMPANY'S NO 2 EXECUTIVE BEHIND THE 36YEAROLD MR WIGGINS MR KORNETT HAD JOINED OXFORD IN JUNE AFTER RUNNING A NEW JERSEY HOSPITAL GROUP AT THAT TIME OXFORD HAD SAID HE WOULD TAKE CHARGE OF DAYTODAYOPERATIONS WHILE MR WIGGINS FOCUSED ON BUSINESS DEVELOPMENT BUT MR KORNETT MAY HAVE FOUND THE SWITCH TO HMOS FROM HOSPITALS MORE COMPLEX THAN HE EXPECTED SAID JOEL RAY AN ANALYST AT KIDDER PEABODY & CO JOINING OXFORD IS DAVID B SNOW JR WHO HAD BEEN PRESIDENT OF MANAGED HEALTH CARE SYSTEMS INC MR SNOW 39 WILL BECOME ONE OF THREE EXECUTIVE VICE PRESIDENTS THE NEXT LEVEL OF MANAGEMENT BELOW MR WIGGINS OXFORD SAID IT IS LEAVING ITS PRESIDENCY VACANT FOR NOW MR SNOW PREVIOUSLY WORKED FOR US HEALTHCARE INC ANOTHER MAJOR HMO AND COMPETED WITH OXFORD FOR CUSTOMERS I'VE BEEN TRYING TO RECRUIT DAVE FOR FOUR YEARS MR WIGGINS SAID HE'S VERY GOOD AT THE DELIVERYSYSTEM MANAGEMENT SIDE OF THE BUSINESS OXFORD'S OTHER EXECUTIVE VICE PRESIDENTS ARE DONALD BARRETT AND ROBERT M SMOLER MR SMOLER WAS PROMOTED TO THE POST AS PART OF THE OVERALL MANAGEMENT SHUFFLE 9304050182 930405 QUARTERLY MUTUAL FUNDS REVIEW LEXINGTON STRATEGIC'S TURNAROUND TOPPED RESULTS IN FIRST QUARTER BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL THIS WINTER PROVED THAT AT LEAST ONCE IN A WHILE THE LAST SHALL BE FIRST AN EXPLOSIVE TURNAROUND IN GOLD AND NATURAL GAS STOCKS BROUGHT BIG GAINS TO TWO SECTORS THAT HAVE SUFFERED IN RECENT YEARS THE BEST FUND IN THE FIRST QUARTER SOARING 7273 WAS LEXINGTON STRATEGIC INVESTMENTS WHICH PREVIOUSLY DISTINGUISHED ITSELF BY LOSING MORE MONEY THAN ANY OTHER FUND IN THE 10 YEARS THROUGH DEC 31 1992 AND METLIFESTATE STREET GLOBAL ENERGY TURNED IN THE BEST PERFORMANCE FOR THE YEAR AND THIRDBEST IN THE QUARTER AFTER A DIFFICULT PRIOR EXISTENCE JAPANESE STOCKS ACCELERATED THE REBOUND THAT BEGAN LAST SUMMER GIVING A BOOST TO MERRILL LYNCH PACIFIC A THE LEADING FUND FOR THE PAST 10 YEARS VISTA GROWTH & INCOME TURNED IN A STEADY STRONG PERFORMANCE OVER FIVE YEARS BY LOOKING FOR FASTGROWING STOCKS AT INEXPENSIVE PRICES STEPHEN SILVERMAN HAS MADE MONEY IN THE PACIFIC BY BEING CAUTIOUS HE HEDGED AGAINST MARKET DECLINES IN JAPAN EVEN BEFORE STOCKS STARTED SINKING AT THE START OF 1990 HE BUYS COMPANIES IN SOLID BUSINESSES SUCH AS COCACOLA BOTTLERS BUT EVEN THIS CAUTIOUS INVESTOR THINKS THE WORST IS OVER IN JAPAN WE NO LONGER THINK THERE'S A LIKELIHOOD THE MARKET WILL COLLAPSE HE SAYS WE THINK THE MARKET HAS BEEN RESCUED HE HEARS FROM BROKERAGE FIRMS THAT THEY ARE GETTING CALLS FROM INVESTORS WHO HAVE BEEN OUT OF JAPAN FOR YEARS ASKING WHAT TO BUY ONE OF MERRILL LYNCH PACIFIC'S LONGTIME HOLDINGS IN JAPAN IS TOYO SEIKAN KAISHA LTD WHICH MAKES BOTTLES AND CANS THE MERRILL FUND HAS 70 TO 75 OF ITS ASSETS IN JAPAN NOW MR SILVERMAN SAYS ABOUT AT HIS MAXIMUM EXPOSURE BUT HIS BIGGEST HOLDING IS CHINA LIGHT & POWER CO A HONG KONG UTILITY THAT IS A FAVORED CHINA PLAY AMONG INTERNATIONAL INVESTORS HIS SECOND LARGEST COUNTRY EXPOSURE IS SINGAPORE AND MALAYSIA WHICH HE CONSIDERS TO BE A SINGLE MARKET MR SILVERMAN HAS RUN THE MERRILL LYNCH PACIFIC A FUND WHICH HAS ASSETS OF 500 MILLION FOR 10 YEARS THE FUND'S LOAD OR SALES CHARGE IS A MAXIMUM OF 65 MERRILL ALSO SELLS B SHARES FOR THE SAME PORTFOLIO THAT DON'T CHARGE AN UPFRONT LOAD BUT IMPOSE ANNUAL EXPENSES CURRENTLY 1 MARK TINCHER PORTFOLIO MANAGER OF VISTA GROWTH & INCOME HAS BEEN TAKING HIS LEAD FROM THE BOND MARKET SIX MONTHS AGO HE PUMPED CASH UP TO 20 OF HIS FUND'S ASSETS WHEREAS MOST FUNDS ARE CONSIDERED FULLY INVESTED WITH CASH POSITIONS OF ONLY 5 OR SO SINCE THEN WHENEVER BONDS HAVE RALLIED HE'S PUT THAT MONEY TO WORK NOW HE'S HOLDING 10 OF HIS FUND'S 335 MILLION IN ASSETS IN CASH WE'RE TRYING TO BE SENSITIVE ABOUT WHEN WE REACH VALUATION EXTREMES MR TINCHER SAYS FOR NOW HE THINKS THAT LOW INTEREST RATES SUPPORT THE LOFTY PRICES OF STOCKS ALTHOUGH THEY WOULD BE VULNERABLE TO SOME KIND OF A BOND MARKET REVERSAL MR TINCHER HAS RUN VISTA GROWTH & INCOME FOR ABOUT TWO YEARS AND HE HAS HANDILY BEATEN THE S&P 500STOCK INDEX IN THAT TIME HE LOOKS FOR STOCKS THAT HAVE GOOD PROSPECTS FOR EARNINGS GROWTH BUT DON'T YET COMMAND HIGH PRICES RELATIVE TO THEIR GROWTH A SCHOOL OF INVESTING THAT HAS DONE WELL IN RECENT YEARS HE USES COMPUTER SCREENS TO HELP UNEARTH THESE TYPES OF STOCKS THE FUND WAS BORN 5 1/2 YEARS AGO RIGHT BEFORE THE OCTOBER 1987 STOCK MARKET CRASH THE FUND SPENT ITS FIRST SEVERAL MONTHS ENTIRELY IN CASH IT WAS OPEN FOR PURCHASE MR TINCHER SAYS BUT NOBODY WANTED TO BUY ECONOMISTS WERE TALKING ABOUT THE COMING DEPRESSION TODAY HE LIKES SHOEMAKER REEBOK INTERNATIONAL LTD PEOPLE ARE PROBABLY UNDERESTIMATING SOME OF ITS EARNINGS POTENTIAL HE SAYS AND THE STOCK SELLS FOR A BELOWMARKET 12 TIMES HIS ESTIMATE OF THIS YEAR'S EARNINGS HE ALSO LIKES COMPUTER SCIENCES CORP WHICH DOES COMPUTER PROCESSING FOR CORPORATE CUSTOMERS IN THE MANNER OF EDS A SUBSIDIARY OF GENERAL MOTORS CORP IN THIS FASTGROWING BUSINESS THE MARKET POTENTIAL IS PRETTY STRONG BUT COMPUTER SCIENCES SELLS FOR ONLY 16 TIMES HIS ESTIMATE OF THIS YEAR'S EARNINGS THE FUND IS ADVISED BY A UNIT OF CHASE MANHATTAN CORP AND CHARGES A MAXIMUM 475 LOAD NATURAL GAS PRICES FINALLY ROSE LAST YEAR AND DANIEL RICE IS BETTING THE PORTFOLIO OF METLIFESTATE STREET GLOBAL ENERGY THAT IT WILL BE A LONG TIME BEFORE THEY GO BACK DOWN AGAIN WE BELIEVE THE 12YEAR NATURAL GAS BUBBLE IS GONE MR RICE SAYS MR RICE MOSTLY BUYS STOCKS OF SMALL NATURAL GAS PRODUCERS FOR HIS 25 MILLION FUND HE ALSO MANAGES 470 MILLION IN INSTITUTIONAL MONEY IN A SIMILAR FASHION SMALL COMPANIES HAVE BENEFITED THE MOST FROM THE PAST YEAR'S RISE IN NATURAL GAS PRICES TO 2 PER THOUSAND CUBIC FEET UP FROM 120 A YEAR AGO SMALLER STOCKS CAN BE MUCH MORE LEVERAGED TO NATURAL GAS THAN THE BIG STOCKS HE SAYS THAT LEVERAGE WORKED AGAINST MR RICE'S FUND FOR ITS FIRST COUPLE OF YEARS AS THE NATURAL GAS GLUT HUNG OVER ITS STOCKS WITH THIS YEAR'S STRONG PERFORMANCE GLOBAL ENERGY HAS ONLY JUST RECOUPED THE LOSSES INCURRED SINCE IT BEGAN MARCH 2 1990 DESPITE THE WORD GLOBAL IN THE FUND'S NAME 99 OF THE ASSETS ARE INVESTED IN NORTH AMERICAN COMPANIES MR RICE LIKES CS RESOURCES A CALGARY ALBERTA COMPANY THAT SPECIALIZES IN HORIZONTAL DRILLING FOR HEAVY OIL HIS BIGGEST HOLDING IS PHOENIX RESOURCE COS AN OKLAHOMA CITY OIL AND GAS CONCERN WITH ASSETS IN EGYPT AND ALASKA WILL HIGHER NATURAL GAS PRICES QUICKLY LEAD TO ANOTHER GLUT MR RICE SAYS NO WE'RE LOOKING FOR PRETTY STRONG PRICES OVER THE NEXT TWO TO FOUR YEARS MR RICE SAYS THERE ARE 110 DRILLING RIGS AVAILABLE IN THE GULF OF MEXICO NOW HE SAYS AND WE NEED BETWEEN 150 AND 190 RIGS TO SUSTAIN PRODUCTION AT CURRENT DEMAND IT WILL TAKE ANOTHER COUPLE OF YEARS FOR THOSE RIGS TO GET BACK TO THE US THE FUND CHARGES A MAXIMUM LOAD OF 45 IF EVERY DOG HAS ITS DAY THEN THIS IS THE DAY FOR LEXINGTON STRATEGIC INVESTMENTS PORTFOLIO MANAGER CAESAR BRYAN HAS TURNED IN A SPECTACULAR QUARTER THANKS TO HIS INVESTMENTS IN SURGING SOUTH AFRICAN GOLDMINING STOCKS THE FUND ALSO GOT A BOOST OF ABOUT 8 FROM THE SOUTH AFRICAN RAND WHICH APPRECIATED AGAINST THE DOLLAR BUT EVEN THIS SURGE HASN'T ERASED THE LOSSES INVESTORS HAVE INCURRED IN THE PAST YEAR IF YOU HAD PUT 1000 IN THE FUND ON MARCH 31 1992 YOU WOULD HAVE HAD LESS THAN 870 LEFT A YEAR LATER BEFORE SALES CHARGES LEXINGTON STRATEGIC HAD THE WORST PERFORMANCE FOR A FUND OVER THE PAST FIVE YEARS AND THE SECONDWORST OVER THE PAST 10 YEARS MR BRYAN INHERITED MUCH OF THAT POOR TRACK RECORD AT THE END OF 1991 THE SECURITIES AND EXCHANGE COMMISSION DISQUALIFIED THE PRIOR INVESTMENT ADVISER STRATEGIC MANAGEMENT INC FROM RUNNING THE FUND CITING VIOLATIONS OF SECURITIES REGULATIONS AND BREACH OF FIDUCIARY DUTY LEXINGTON MANAGEMENT CORP TOOK OVER MR BRYAN MANAGES FOUR OTHER LEXINGTON FUNDS INCLUDING A US GOLD FUND AND A COUPLE OF INTERNATIONAL FUNDS MR BRYAN QUICKLY SOLD A BUNCH OF CANADIAN EXPLORATION COMPANIES QUOTED IN VANCOUVER THAT THE FUND HELD BUT IN 1992 THE PRICE OF GOLD FELL SOUTH AFRICAN STOCKS COLLAPSED AND THE FUND LOST MORE THAN 60 IT WAS VERY DISTRESSING LAST YEAR SAYS THE 38YEAROLD MR BRYAN THANK HEAVEN IT'S ONLY ONE OF THE THINGS I DO OR I'D HAVE JUMPED OUT OF A WINDOW BUT MR BRYAN HELD ON FOR THE REBOUND THAT CAME IN THE FIRST QUARTER THE STOCKS HE BUYS ARE SO TINY AND ILLIQUID HE SAYS THAT THEY ZIGZAG WIDELY IN PRICE BIG HOLDINGS INCLUDE KINROSS MINES LTD AND WINKELHAAK MINES LTD GOLD CAN JUST TWITCH AND THIS FUND FLIES HE SAYS THE PRICE OF GOLD SHOWED A TWITCH UPWARD IN THE FIRST QUARTER RISING TO 337 AN OUNCE FROM 330 AND IT HAS SINCE ADVANCED TO AROUND 342 THERE'S A SENSE THAT WE MAY BE GETTING TO THE END OF THE BEAR MARKET IN GOLD BULLION MR BRYAN SAYS IF SO THE FUND WHICH CHARGES A MAXIMUM 85 LOAD COULD HAVE MORE GOOD QUARTERS AHEAD BUT IF GOLD COLLAPSES MR BRYAN SAYS THIS IS NOT WHERE YOU WANT TO BE 9304050181 930405 ENVIRONMENT BY ROSE GUTFELD FLORIDA'S EVERGLADES NATIONAL PARK IS GETTING MUCHNEEDED FEDERAL ATTENTION THANKS TO A HIGHLEVEL PHONE CALL INTERIOR SECRETARY BRUCE BABBITT SAID A CALL IN FEBRUARY FROM CAROL BROWNER ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY AND A FLORIDA NATIVE PROMPTED HIM TO TAKE A CLOSER LOOK AT THE EVERGLADES HE TRAVELED TO TALLAHASSEE WHERE HE MET WITH THE EVERGLADES COALITION AN ORGANIZATION CONSISTING OF 28 STATE AND NATIONAL GROUPS I CAME BACK ABSOLUTELY APPALLED HE SAYS THE EVERGLADES IS A DYING ECOSYSTEM HEADED FOR COMPLETE COLLAPSE NOW MR BABBITT PLANS TO CONVENE A GROUP OF FEDERAL OFFICIALS TO WORK WITH THE STATE TO DEVELOP A RESTORATION PLAN AN INITIAL STEP WILL BE TO GET CONGRESS TO APPROVE CLOSE TO 1 MILLION FOR THE ARMY CORPS OF ENGINEERS TO DO PRELIMINARY TECHNICAL WORK WHAT'S NEEDED MR BABBITT SAYS IS A REVERSE ENGINEERING JOB TO RESTORE THE LINK BETWEEN THE EVERGLADES AND LAKE OKEECHOBEE A CONNECTION SEVERED YEARS AGO BECAUSE OF A FLOODPREVENTION PROJECT AND THE CLEARING OF LAND FOR AGRICULTURE AS A RESULT THE EVERGLADES IS DRYING UP HE SAYS WITH THE REDUCED WATER FLOW DAMAGED BY PHOSPHATE RUNOFF STEVEN PARCELLS CHAIRMAN OF THE EVERGLADES COALITION ALSO SAYS THE INCREASED SALINITY OF FLORIDA BAY CAUSED BY THE DROP IN FRESH WATER FLOWING THROUGH THE EVERGLADES HAS RESULTED IN A MASSIVE LOSS OF SEA GRASS NEEDED TO SUSTAIN SHRIMP AND OTHER CREATURES EARLY IN THEIR LIVES HE SAYS THAT THE NATURAL TIMING OF WATER FLOWS MUST BE RESTORED AS WELL AS WATER QUALITY AND QUANTITY FLORIDA HAS SOUGHT TO RESTORE THE TIMING BY NEGOTIATING WITH SOME WATER DISTRICTS TO MAKE WATER RELEASES CORRESPOND WITH RAINFALL BUT PLANS ARE STILL BEING PUT IN PLACE HOPES BLOSSOM ANEW FOR LEGISLATION THAT WOULD CREATE NEW PARKLAND IN THE SOUTHERN CALIFORNIA DESERT INTERIOR SECRETARY BABBITT CALLS DESERT PROTECTION A TOP LEGISLATIVE PRIORITY AND SAYS HE IS INCLINED TO SUPPORT THE POSITION OF CALIFORNIA'S SENATORS ON THE ISSUE ONE OF THE SENATORS DIANNE FEINSTEIN HAS INTRODUCED THE CALIFORNIA DESERT PROTECTION ACT WHICH WOULD CREATE A NEW NATIONAL PARK OUT OF 15 MILLION ACRES IN THE EAST MOJAVE DESERT NEAR LOS ANGELES THE AREA IS CURRENTLY MANAGED AS A NATIONAL SCENIC AREA AND THE BUREAU OF LAND MANAGEMENT ALLOWS LIMITED MINING AND GRAZING ON MUCH OF IT SUCH ACTIVITIES WOULD BE PROHIBITED IF IT BECOMES A PARK ALSO UNDER THE BILL TWO NATIONAL MONUMENTS DEATH VALLEY AND JOSHUA TREE WOULD BE EXPANDED AND REDESIGNATED AS PARKS AN ADDITIONAL FOUR MILLION ACRES LARGELY MANAGED AS WILDERNESS STUDY AREAS WOULD BE OFFICIALLY DESIGNATED WILDERNESS SIMILAR LEGISLATION HAS FAILED IN THE PAST AND PASSAGE ISN'T A SURE THING THIS YEAR OPPOSITION IS EXPECTED FROM GROUPS REPRESENTING MINERS GRAZERS HUNTERS AND OFFROAD VEHICLE USERS ALL OF WHOM WOULD FACE LIMITS ON THEIR ACTIVITIES THE NATIONAL RIFLE ASSOCIATION IS PUSHING TO ALLOW HUNTING TO CONTINUE IN A PORTION OF THE EAST MOJAVE THE GROUP SAYS HUNTING COULD BE PERMITTED IN AREAS THAT WOULDN'T CONFLICT WITH OTHER PARK VISITORS PROPONENTS ARE HEARTENED THAT THE WHITE HOUSE AND BOTH CALIFORNIA SENATORS BACK THE PARK PUSH FOR THE FIRST TIME WE FINALLY MAY HAVE A REALISTIC HOPE THAT PROTECTION FOR THE DESERT IS GOING TO HAPPEN SAYS THE WILDERNESS SOCIETY'S NANCY GREEN WHO PREDICTS A TOUGH FIGHT THE ENDANGERED REDCOCKADED WOODPECKER MAY BENEFIT FROM INNOVATIVE CREDITTRADING SCHEMES IN SOUTHEASTERN STATES THE FEDERAL FISH & WILDLIFE SERVICE AND THE PRIVATE ENVIRONMENTAL DEFENSE FUND ARE EACH WORKING ON PLANS TO CREATE INCENTIVES FOR LANDOWNERS TO MANAGE PROPERTIES IN WAYS THAT WOULD HELP SUSTAIN THE SPECIES WHICH HAS BEEN PROTECTED FROM DEVELOPMENT SINCE 1973 RALPH COSTA THE BIRD'S RECOVERY COORDINATOR AT THE SERVICE SAYS LANDOWNERS COULD EARN MARKETABLE TRANSFERABLE ENDANGERED SPECIES CERTIFICATES BY ALLOWING A PAIR TO BREED AND THEN SENDING THE FLEDGLINGS TO LIVE ON FEDERAL LANDS AN ECONOMIC VALUE WOULD BE DETERMINED AND ATTACHED TO THE CERTIFICATE WHICH COULD THEN BE SOLD OR TRADED WITH OTHER LANDOWNERS A CREDIT WOULD ENABLE A PROPERTY OWNER TO CUT TREES OR TAKE OTHER ACTION THAT WOULD DESTROY BIRD HABITAT MR COSTA SAYS THE ABILITY TO BUY CREDITS MIGHT APPEAL FOR EXAMPLE TO A LANDOWNER FACING A SUDDEN NEED FOR CASH BECAUSE OF A FAMILY EMERGENCY WITHOUT SUCH A CREDIT THE LANDOWNER WOULD BE BARRED FROM ANY ACTION THAT RESULTS IN A NET LOSS OF BIRDS THE PROJECT COULD INVOLVE 13 STATES STRETCHING FROM VIRGINIA TO TEXAS MICHAEL BEAN CHAIRMAN OF THE EDF'S WILDLIFE PROGRAM HAS TALKED TO SOME LANDOWNERS ABOUT CREATING A PILOT PROJECT IN THE CAROLINAS IN WHICH LANDOWNERS COULD EARN CREDITS BY MANAGING LAND IN WAYS THAT HELP THE BIRD EXISTING MECHANISMS FOR PROTECTION THAT ARE EXCLUSIVELY STICKS TO PUNISH OR DETER LANDOWNERS FROM DOING BAD THINGS NEED TO BE SUPPLEMENTED BY CARROTS TO REWARD THEM FOR GOOD THINGS HE SAYS MR BEAN SAYS THAT LIKE THE NORTHERN SPOTTED OWL THE WOODPECKER IS DEPENDENT ON OLDGROWTH FORESTS THE BIRDS LIVE IN CAVITIES THEY EXCAVATE IN OLD LONGLEAF PINES SOFTENED BY FUNGAL ROT MODERN TIMBER PRACTICES HE SAYS TYPICALLY RELY ON SHORTER ROTATION CYCLES THAN ARE NEEDED FOR TREES TO GET OLD ENOUGH THE POPULATION CRISIS COMMITTEE CITING PROGRESS IN INTERNATIONAL FAMILY PLANNING IS CHANGING ITS NAME TO POPULATION ACTION INTERNATIONAL PRESIDENT JOSEPH SPEIDEL SAYS THAT MORE THAN HALF THE WORLD'S COUPLES NOW USE SOME FORM OF CONTRACEPTION THE TOTAL WEIGHT OF GROCERY PACKAGING THROWN AWAY BETWEEN 1980 AND 1990 DECREASED 94 DESPITE A 10 RISE IN POPULATION SAYS A FRANKLIN ASSOCIATES REPORT PREPARED FOR THREE FOOD ASSOCIATIONS FACTORS INCLUDE LIGHTER PACKAGING MATERIALS AND THE ELIMINATION OF REDUNDANT PACKAGING 9304050179 930405 QUARTERLY MUTUAL FUNDS REVIEW INVESTORS NEED TO WORK HARDER ON RETIREMENT ACCOUNT PLANNING BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL IT'S TIME TO START THINKING HARDER ABOUT WHICH TYPES OF INVESTING TO PUT IN YOUR RETIREMENT ACCOUNT AND WHICH WOULD BE BETTER OFF OUTSIDE IT THE REASON IS THAT TAXES ON ORDINARY INCOME ARE LIKELY TO GO UP THE CLINTON ADMINISTRATION PROPOSES TO RAISE THE ORDINARYINCOME TAX RATE TO 36 FROM 31 FOR FAMILIES WITH TAXABLE INCOME OF 140000 OR MORE AND TO 396 FOR THOSE WITH INCOMES ABOVE 250000 THIS PROPOSAL ISN'T YET LAW BUT FINANCIAL PLANNERS SAY IT'S AN ODDSON BET THAT THERE WILL BE SOME KIND OF WIDENING OF THE GAP BETWEEN ORDINARYINCOME TAX RATES AND THE TOP 28 CAPITALGAINS RATE WHICH MR CLINTON HASN'T PROPOSED TO CHANGE THERE'S A MESSAGE HERE FOR INVESTORS THE PLANNERS SAY IT MATTERS MORE THAN IN THE PAST WHETHER YOU HOLD AN INVESTMENT IN YOUR REGULAR TAXABLE PORTFOLIO OR CHANNEL IT INTO THE TAXDEFERRED REALM OF YOUR IRA 401K OR PROFITSHARING RETIREMENT PLAN IN THE CASE OF STOCK FUNDS WHICH TYPE SHOULD GO IN YOUR IRA THE BASIC RULE IS THAT THE HIGHER THE YIELD ON YOUR FUND THE BIGGER BITE TAXES WILL TAKE OUT OF YOUR RETURN IF YOU HAVE TWO FUNDS AND ONE PAYS A LOT OF DIVIDEND INCOME YOU'RE BETTER OFF HAVING THAT ONE INSIDE THE SHELTER OF A RETIREMENT ACCOUNT SAYS JAMES M EYSENBACH A QUANTITATIVE ANALYST AT SCUDDER STEVENS & CLARK CONVERSELY A STOCK MUTUAL FUND THAT GENERATES RELATIVELY LITTLE ORDINARY INCOME THROUGH DIVIDENDS BUT IS BUILDING UP CAPITAL GAINS WOULD OFTEN MAKE SENSE OUTSIDE THE RETIREMENT ACCOUNT REMEMBER THAT IRAS ONLY DEFER TAXES WHICH MUST BE PAID WHEN YOU SELL SHARES IN RETIREMENT AND THE EVENTUAL WITHDRAWALS FROM AN IRA ARE ALWAYS TAXED AT THE ORDINARYINCOME TAX RATE WHETHER THE MONEY WAS ACCUMULATED THROUGH CAPITAL GAINS OR THROUGH DIVIDENDS SO IN THE END CAPITAL GAINS ACTUALLY GET TAXED AT A LOWER RATE OUTSIDE THE RETIREMENT PLAN OF COURSE THERE'S A LOT MORE TO THINK ABOUT IN BUILDING A MUTUAL FUND PORTFOLIO THAN AVOIDING TAXES BEFORE ANY TAX CONSIDERATIONS INVESTORS SHOULD DECIDE HOW MUCH OF THEIR ASSETS THEY WANT IN STOCK FUNDS AND HOW MUCH IN BOND FUNDS SAYS ROBERT BINGHAM OF THE SAN FRANCISCO INVESTMENT ADVISER BINGHAM OSBORN & SCARBOROUGH PEOPLE HAVE TO BE REAL CAREFUL NOT TO LET THE TAX TAIL WAG THE INVESTMENT DOG HE SAYS WITH THIS MOTTO IN MIND MR BINGHAM ADVOCATES A STRATEGY THAT MIGHT RAISE EYEBROWS AT FIRST GLANCE PUT BOND FUNDS OUTSIDE RETIREMENT ACCOUNTS EVEN THOUGH THE INTEREST INCOME FROM BOND FUNDS WILL BE TAXED AT A HIGHER RATE THAN THE CAPITAL GAINS FROM STOCK FUNDS HERE'S WHY IF YOU HOLD YOUR FIXEDINCOME INVESTMENTS IN GENERAL OUTSIDE OF THE IRA IT GIVES YOU THE ADVANTAGE OF HAVING YOUR MORE LIQUID AND STABLE FUNDS AVAILABLE TO YOU WITHOUT TAX PENALTY IN CASE OF EMERGENCY IF YOU NEED FUNDS IN AN EMERGENCY AND I'M ASSUMING YOU'RE UNDER 59 1/2 YOU'RE GOING TO WANT TO ACCESS YOUR FUNDS WHEN YOU'RE NOT IN A BIG DOWN MARKET YOUNGER INVESTORS WITHDRAWING MONEY FROM RETIREMENT PLANS HAVE TO PAY A 10 PENALTY IN ADDITION TO NORMAL TAXES MOREOVER MR BINGHAM SAYS IF INVESTORS ARE LOATH TO PAY TAXES ON BOND FUNDS HELD OUTSIDE A RETIREMENT ACCOUNT THEY CAN ALWAYS BUY TAXEXEMPT MUNICIPAL BOND FUNDS NOBODY IS SUGGESTING THAT INVESTORS SHOULD GET SO PREOCCUPIED WITH TAXRATE QUESTIONS THAT THEY FAIL TO MAKE FULL USE OF THE TAX DEFERRAL AVAILABLE THROUGH RETIREMENT ACCOUNTS A RETIREMENT ACCOUNT IS STILL A GREAT WAY TO COMPOUND THE GAINS ON AN INVESTMENT WHILE HOLDING THE TAX PEOPLE AT BAY IN FACT THE BENEFITS OF COMPOUNDING USUALLY MORE THAN MAKE UP FOR THE HIGHER TAX RATE ON CAPITAL GAINS EMBEDDED WITHIN TAXDEFERRED PLANS THE LONGER YOUR FUNDS ARE GOING TO STAY IN A PARTICULAR INVESTMENT THE MORE SENSE IT MAKES TO DEFER TAXES AND TO LET YOUR RETURNS BUILD UP THROUGH COMPOUNDING YET THERE ARE TIMES WHEN INVESTORS MAY WANT TO INVEST IN STOCK FUNDS BOTH INSIDE AND OUTSIDE A TAXDEFERRED RETIREMENT ACCOUNT FOR A NUMBER OF REASONS HIGHINCOME TAXPAYERS MAY FIND THEMSELVES COMPELLED TO SPLIT THEIR INVESTMENTS THIS WAY SOME ARE SAVING FOR THEIR CHILDREN'S COLLEGE EXPENSES OR ANOTHER LONGTERM GOAL OTHERS WANT TO SUPPLEMENT THEIR RETIREMENT SAVINGS BUT HAVE BUMPED UP AGAINST LIMITS ON HOW MUCH THEY CAN PUT INTO A TAXDEFERRED PLAN IN THESE CASES IT'S WORTH TAKING THE TIME TO THINK ABOUT THE TAX CONSEQUENCES WHEN CHOOSING WHICH FUNDS WILL STAY OUTSIDE YOUR RETIREMENT PLAN THE QUESTION IS ESPECIALLY WORTH PONDERING FOR INVESTORS WHOSE INCOME PUSHES THEIR ORDINARY INCOME RATE ABOVE THE CAPITAL GAINS RATE TO ILLUSTRATE SCUDDER'S MR EYSENBACH TRACKED TWO HYPOTHETICAL FUNDS OVER THE 10 YEARS THROUGH DEC 31 BOTH FUNDS MATCHED THE RETURN OF THE VANGUARD INDEX TRUST 500 FUND WHICH TRACKS THE STANDARD & POOR'S 500STOCK INDEX BOTH FUNDS PAID OUT THE SAME DISTRIBUTIONS TO SHAREHOLDERS AS THE VANGUARD FUND BUT WITH ONE OF THESE IMAGINARY FUNDS ALL THE DISTRIBUTIONS AND GAINS WERE TAXED AT THE PROPOSED ORDINARY INCOME RATE OF 36 WITH THE OTHER ALL THE DISTRIBUTIONS AND GAINS WERE TAXED AT 28 IN HIS CALCULATIONS MR EYSENBACH ALSO ESTIMATED THE TAX BITE ON THE FUNDS AFTER SELLING THEM AT THE END OF THE 10 YEARS BOTH FUNDS WOULD PERFORM EQUALLY WELL IN A TAXDEFERRED RETIREMENT ACCOUNT BECAUSE WHEN THE MONEY WAS WITHDRAWN AT THE END OF 10 YEARS THE CAPITAL GAINS WOULD BE TAXED AT THE SAME RATE AS ORDINARY INCOME 10000 WOULD IN BOTH CASES HAVE TURNED INTO 30925 AFTER PAYING TAXES ON WITHDRAWING THE MONEY WHAT IF YOU HAD INVESTED IN THESE FUNDS OUTSIDE A RETIREMENT PLAN PAYING TAXES YEAR AFTER YEAR THE ALLINCOME FUND WOULD AT THE END OF THE DECADE HAVE TURNED INTO LESS WEALTH ONLY 28328 BUT THE CAPITALGAIN FUND WOULD ACTUALLY HAVE MORE MONEY LEFT THAN IT WOULD HAVE POSSESSED IF TUCKED AWAY IN A TAXDEFERRED ACCOUNT MR EYSENBACH ESTIMATES THAT THE CAPITALGAIN FUND WOULD HAVE TURNED 10000 INTO 31235 OR 310 MORE THAN IN THE CASE OF THE POSTTAX IRA ACCOUNT HOW COULD A FULLY TAXED FUND HAVE A HIGHER AFTERTAX RETURN THAN THE TAXDEFERRED FUND THE SEEMING PARADOX IS REALLY NO MYSTERY IT ARISES FROM THE LOWER TAX RATE ON CAPITAL GAINS CLEARLY IT WOULD PAY TO PUT THE CAPITALGAINS FUND OUTSIDE THE IRA AND THE ALLINCOME FUND IN THE IRA TO BENEFIT FROM THE DIFFERENT TAX TREATMENT OF CAPITAL GAINS AND ORDINARY INCOME THAT DOESN'T MEAN THAT YOU WOULD ALWAYS FARE BETTER PUTTING BIG CAPITALGAINS FUNDS OUTSIDE AN IRA WITH REAL MUTUAL FUNDS YOU'D PROBABLY BE BETTER OFF OVER 10 YEARS OR MORE PUTTING EVEN A HIGHCAPITALGAINS FUND INTO A RETIREMENT ACCOUNT BUT WHEN YOU HAVE TO INVEST SOME OF YOUR MONEY OUTSIDE AN IRA THE FUND WITH THE LOWER YIELD MAKES MORE SENSE BESIDES YIELD ANOTHER TIPOFF TO A FUND LIKELY TO GET HIT WITH HIGHER TAXES IS HIGH DISTRIBUTIONS OF REALIZED CAPITAL GAINS INVESTORS MUST PAY TAXES IMMEDIATELY ON REALIZED GAINS BUT THEY PAY TAXES ON PAPER GAINS ONLY WHEN THEY SELL THEIR SHARES AND TIME IS MONEY IF THESE GUYS ARE MAKING BIG CAPITAL GAINS BUT REALIZING THEM CONSTANTLY YOU'RE GOING TO HAVE A BIGGER TAX BURDEN THAN IF THEY WERE NOT SAYS JONATHAN SMALL A TAX PARTNER AT THE LAW FIRM DEBEVOISE & PLIMPTON CERTAINLY THE WORST REACTION INVESTORS COULD HAVE TO RISING ORDINARY INCOME TAXES WOULD BE TO DUMP STOCK FUNDS FROM THEIR RETIREMENT ACCOUNTS AND FAVOR ONLY BONDS SAYS WILLIAM DROMS A PROFESSOR OF FINANCE AT GEORGETOWN UNIVERSITY IF YOU'RE IN YOUR 40S AND YOU WILL RETIRE AT 65 ALL THE STANDARD DATA SAY YOU SHOULD BE HEAVILY ORIENTED TOWARD STOCKS MR DROMS SAYS THAT'S BECAUSE OVER LONG PERIODS OF TIME STOCKS HAVE HISTORICALLY HAD HIGHER RETURNS THAN BONDS AND THOSE RETURNS COMPOUND OVER TIME IF YOU INVESTED YOUR 100000 RETIREMENT PLAN IN BONDS FOR 20 YEARS AND MIGHT REASONABLY EXPECT AN 8 ANNUALIZED RETURN MR DROMS SAYS GIVING YOU 466000 AT THE END OF THE PERIOD BUT IF YOU INVESTED IN STOCKS MR DROMS SAYS YOU MIGHT EXPECT A RETURN OF 12 A YEAR GIVING YOU ABOUT 800000 DON'T SWEAT THE TAXES SAYS MR DROMS YOU OUGHT TO BE A LOT MORE CONCERNED ABOUT THE DIFFERENCE BETWEEN A 500000 CAPITAL POOL AND AN 800000 CAPITAL POOL CONSIDER PUTTING YOUR HIGHGROWTH LOWYIELDING FUNDS OUTSIDE YOU IRA BECAUSE UNDER THE CLINTON TAX PROPOSAL ORDINARY INCOME WILL BE TAXED AT A HIGHER RATE THAN CAPITAL GAINS TO SEE THE CONTRAST LOOK AT TWO HYPOTHETICAL FUNDS VANGUARD INDEX 500 9304050178 930405 ENTERPRISE REBUILD LOS ANGELES TURNS ITS EFFORTS TO SMALL BUSINESS GROUP IN SHIFT AWAY FROM BIG FIRMS PLANS TO PROVIDE FUNDS FOR EXPANSION BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES AS THIS CITY REBUILDS IN THE WAKE OF LAST APRIL'S RIOTS THE NEXT TWELVE MONTHS MAY COME TO BE SEEN AS THE YEAR OF THE ENTREPRENEUR OUR MAJOR EFFORT IN YEAR TWO WILL BE NURTURING SMALL BUSINESSES SAYS PETER UEBERROTH COCHAIRMAN OF REBUILD LOS ANGELES THE CITY'S OFFICIAL RIOTRECOVERY ORGANIZATION THE SMALLBUSINESS EMPHASIS REPRESENTS A POTENTIALLY MAJOR SHIFT IN WHAT HAS BEEN BILLED AS THE NATION'S MOST AMBITIOUS PRIVATESECTOR URBAN RENEWAL EFFORT WHEN MR UEBERROTH A FORMER BASEBALL COMMISSIONER AND CHIEF ORGANIZER OF THE 1984 SUMMER OLYMPICS HERE FORMED RLA HE INITIALLY FOCUSED ON PERSUADING MAJOR COMPANIES TO INVEST IN THE POOREST PARTS OF LOS ANGELES THE IDEA WAS THAT SUCH CONCERNS WOULD CREATE TENS OF THOUSANDS OF JOBS AND PUMP BILLIONS OF DOLLARS INTO THE LOCAL ECONOMY BY OPENING HUNDREDS OF RELATIVELY SMALL OPERATIONS SUCH AS A STORE A DISTRIBUTION CENTER OR A BRANCH OFFICE SO FAR RLA HAS LINED UP SEVERAL DOZEN COMMITMENTS FROM BIG COMPANIES BUT THAT IS STILL FAR SHORT OF WHAT WOULD BE NEEDED THOUGH RLA IS STILL TRYING TO ATTRACT MORE CORPORATE COMMITMENTS ONE RLA OFFICIAL CONCEDES THAT IT WAS PROBABLY UNREALISTIC TO FOCUS SO HEAVILY ON MAJOR COMPANIES WHEN MANY ARE DOWNSIZING RATHER THAN EXPANDING WE LEARNED AS WE WENT ALONG THE OFFICIAL ADDS IN COMING MONTHS RLA OFFICIALS SAY THEY WILL GIVE GREATER EMPHASIS TO PROVIDING EXPANSION CAPITAL TO THE SEVERAL THOUSAND SMALL BUSINESSES ALREADY OPERATING IN THE CITY'S NEGLECTED AREAS RLA SOON WILL UNVEIL TWO FUNDS THAT OFFICIALS HOPE WILL EVENTUALLY FURNISH EXISTING INNERCITY BUSINESSES WITH TENS OF MILLIONS OF DOLLARS IN FINANCING RLA ALREADY IS HELPING SOME SMALL BUSINESSES TO MAKE CONNECTIONS WITH BIGGER BUSINESSES FOR INSTANCE RLA INTRODUCED THO BRIQUE WEST INC A SMALL LONG BEACH DISTRIBUTOR OF A LIGHT HIGHINSULATING BRICK PRODUCT TO POTENTIAL CUSTOMERS THERMO BRIQUE IS PARTLY MINORITYOWNED AND HIRES FORMER GANG MEMBERS FROM SOUTH CENTRAL LOS ANGELES IT SAYS IT IS NEGOTIATING WITH A LOCAL GROCERY CHAIN ABOUT USING ITS BRICKS TO BUILD SEVERAL NEW STORES IN THE RIOT AREA AND OTHER PARTS OF LOS ANGELES WITHOUT RLA WE WOULDN'T HAVE EVEN GOTTEN THROUGH THE DOOR SAYS HENRY WOODS THERMO BRIQUE'S SENIOR VICE PRESIDENT AND PART OWNER RLA SEES AT LEAST TWO MAJOR ADVANTAGES IN REVIVING DEPRESSED AREAS OF LOS ANGELES BY TARGETING EXISTING SMALL BUSINESSES UNLIKE BIG COMPANIES THESE SMALL FIRMS ARE ALREADY THERE SECOND SUCH BUSINESS OWNERS HAVE SHOWN THAT THEY KNOW HOW TO SURVIVE IN WHAT CAN BE A VERY TOUGH ENVIRONMENT RLA OFFICIALS ESTIMATE THAT THERE ARE SEVERAL THOUSAND SMALL BUSINESSES MANY OF THEM MINORITY OWNED IN THE TARGET AREAS LIKE MINORITY FIRMS ACROSS THE COUNTRY MANY HERE BADLY NEED CAPITAL TO GROW SAYS BARRY SANDERS A PROMINENT LOCAL ATTORNEY AND RLA COCHAIRMAN RLA WANTS TO PROVIDE SMALL FIRMS IN ITS TARGET AREAS WITH LOANS AND INVESTMENTS TOTALING AS MUCH AS 1 MILLION EACH MOST TRANSACTIONS WILL BE BETWEEN 25000 AND 100000 MR SANDERS SAYS SO RLA IS ESTABLISHING A NONPROFIT LENDING FUND THAT IT HOPES TO INITIALLY CAPITALIZE AT ABOUT 5 MILLION THROUGH PRIVATE DONATIONS AND SOME FEDERAL FUNDS ACCORDING TO MR SANDERS RLA ENVISIONS ENLARGING THE FUND TO BETWEEN 20 MILLION AND 30 MILLION IN THE NEXT FEW YEARS WE ARE LOOKING FOR BORROWERS WHO HAVE TRADITIONALLY BEEN NONBANKABLE MR SANDERS SAYS THE FUND SCHEDULED TO BE UNVEILED ABOUT A WEEK BEFORE THE APRIL 29 ANNIVERSARY OF THE RIOTS WOULD TRY TO ADDRESS A COMMON COMPLAINT OF SMALLBUSINESS OWNERS ESPECIALLY MINORITY GROUP MEMBERS WHEN A SMALL BUSINESS NEEDS FUNDING TO EXPAND OR BUY EQUIPMENT YOU ARE USUALLY TALKING 25000 TO 50000 AND THAT IS TOO SMALL FOR VENTURE CAPITALISTS OR BANKS SAYS DOLORES RATCLIFFE PRESIDENT OF CORITA COMMUNICATIONS INC A TRAINING AND CONSULTING FIRM IN LOS ANGELES AND FOUNDER OF THE ASSOCIATION OF BLACK WOMEN ENTREPRENEURS ALSO IN LOS ANGELES FOR LARGER LOANS OR INVESTMENTS RLA IS CREATING A SOCALLED SMALL BUSINESS INVESTMENT COMPANY THOUGH THERE ARE HUNDREDS OF OTHER SBICS AROUND THE COUNTRY THE RLA COMPANY COULD AMASS ONE OF THE BIGGEST BANKROLLS TO ASSIST INNERCITY BUSINESSES ALSO SET TO BE UNVEILED THIS MONTH THE SBIC IS EXPECTED TO OPEN WITH ABOUT 20 MILLION IN PRIVATE MONEY MR SANDERS SAYS FEDERAL MATCHING FUNDS COULD BRING THAT TOTAL TO ABOUT 60 MILLION WITHIN A FEW MONTHS HE ADDS BUT NOT EVERYONE IS ENTHUSIASTIC ABOUT RLA'S INCREASED INTEREST IN ENTREPRENEURS SOME MINORITY VENTURE CAPITALISTS FEAR RLA'S NEW FINANCING INITIATIVES COULD HINDER THEIR OWN EFFORTS TO CREATE SIMILAR FUNDS AMONG THEM ARE ARMAN WALKER AND DONALD PERRY III THE TWO BLACK BANKERS ARE TRYING TO PUT TOGETHER A 25 MILLION VENTURECAPITAL FUND FOR INVESTING IN MINORITYOWNED COMPANIES IN THE LOS ANGELES AREA THEY SAY THEY WENT TO RLA SHORTLY AFTER THE RIOTS SEEKING FUNDRAISING HELP FOR THEIR TWOYEAROLD PLAN RLA OFFICIALS POLITELY PUT THEM OFF THEY RECALL THEY MISSED A GOLDEN OPPORTUNITY TO GET SOMETHING GOING MONTHS AGO SAYS MR PERRY IN RESPONSE MR SANDERS SAYS RLA APPLAUDS THE BLACK BANKERS' EFFORTS BUT BELIEVES THERE IS ROOM FOR SEVERAL FUNDS TO HELP INNERCITY BUSINESSES RECENTLY RLA DID GIVE MESSRS PERRY AND WALKER A LETTER OF SUPPORT YET THE TWO VENTURE CAPITALISTS STILL WORRY ABOUT THE POSSIBLE IMPACT OF RLA'S NEW FUNDRAISING EFFORTS RLA SHOULDN'T BE COMPETING WITH EFFORTS SUCH AS OURS SAYS MR WALKER MANY RIOT VICTIMS ARE EQUALLY CRITICAL IN THEIR APPRAISALS OF RLA THAT'S PARTLY BECAUSE RLA INITIALLY IGNORED MOST EFFORTS TO REBUILD BURNEDOUT BUSINESSES IN ORDER TO FOCUS ON ATTRACTING NEW ENTERPRISES TO THE AREA BUT AS PART OF ITS EXPANDED EMPHASIS ON SMALL BUSINESSES RLA HAS BEGUN TO PAY MORE ATTENTION TO ENTERPRISES DAMAGED BY THE RIOT EVIDENCE SUGGESTS RLA COULD HELP A NUMBER OF THESE FIRMS CONSIDER BEAR PRINTING CO WHICH BURNED DOWN DURING THE RIOTS THANKS TO REFERRALS FROM RLA OWNER BEN MAYO SAYS HE SOON GOT AN EQUIPMENT LOAN A NEW LOCATION A LIST OF REBUILDING CONTRACTORS AND EVEN AN ORDER TO HANDLE SOME OF RLA'S PRINTING WORK HE WAS BACK IN BUSINESS BY LAST FALL OBSERVES MR MAYO RLA HAS BEEN VERY GOOD TO ME 9304050177 930405 ENERGY PARTNERSHIP OFFERS ARE REJECTED BY PRUDENTIAL UNIT NEW YORK A UNIT OF PRUDENTIAL SECURITIES INC SPURNED THE RECENT TENDER OFFERS 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 WHICH WERE SOLD BY PRUDENTIAL IN THE 1980S WAS SAID TO BE VALUED AT 175 MILLION IN A STATEMENT PRUDENTIAL SAID ITS PRUDENTIALBACHE ENERGY PRODUCTION UNIT'S BOARD CALLED THE OFFERS BY GEORGE B KAISER INADEQUATE AND RECOMMENDED THAT HOLDERS OF PARTNERSHIP INTERESTS NOT TENDER THE UNIT'S BOARD SAID THE OFFER DOES NOT REFLECT THE INHERENT VALUES IN THE PARTNERSHIPS THE OFFER ALSO WAS REJECTED BY GRAHAM ROYALTY LTD OF COVINGTON LA WHICH ORGANIZED THE PARTNERSHIPS WITH PRUDENTIAL PRUDENTIAL SAID MERRILL LYNCH & CO IS ADVISING IT IN ASSESSING THE PROPERTIES' VALUE IT SAID IT WILL INVITE THIRD PARTIES TO REVIEW INTERNAL PARTNERSHIP INFORMATION AND TO MAKE PROPOSALS WHICH COULD PROVIDE SUPERIOR VALUE FOR THE LIMITED PARTNERS A SPOKESMAN FOR PRUDENTIAL CITED THE COMPANY'S FILING WITH THE SECURITIES AND EXCHANGE COMMISSION RESPONDING TO THE KAISER TENDER OFFER IN WHICH PRUDENTIAL SAID SEVERAL PARTIES HAVE EXPRESSED INTEREST IN THE PARTNERSHIPS AND THAT ONE HAS SUGGESTED A PRELIMINARY LEVEL OF INTEREST THAT EXCEEDS THE PURCHASE PRICE PROPOSED IN THE KAISER OFFERS PRUDENTIAL SAID THE BIDDING PROCESS WILL BE VIGOROUSLY PURSUED BUT WARNED THAT THERE IS NO ASSURANCE OF PROPOSALS BEING MADE OR ANY TRANSACTION BEING COMPLETED MR KAISER THROUGH A SUBSIDIARY GBK ACQUISITION LAUNCHED THE TENDER OFFERS MARCH 22 ABOUT 125000 INVESTORS IN THE PARTNERSHIPS ARE PARTICIPANTS IN A CLASSACTION LAWSUIT AGAINST PRUDENTIAL THEY HAVE BEEN OFFERED A SETTLEMENT THAT INCLUDES A COMBINATION OF SMALL CASH PAYMENTS AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM THE PROPOSED SETTLEMENT IS BEFORE A FEDERAL JUDGE IN NEW ORLEANS PRUDENTIAL SOLD MORE THAN 14 BILLION IN OIL AND GAS PARTNERSHIP UNITS BUT AS THE INVESTMENTS TUMBLED IN VALUE UNIT HOLDERS ARGUED THAT THE PARTNERSHIPS WERE FALSELY MARKETED AS SAFE INVESTMENTS SUITABLE FOR RETIREMENT FUNDS PRUDENTIAL SECURITIES IS A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA BASED IN NEWARK NJ 9304050176 930405 WHO'S NEWS SCIMED LIFE SYSTEMS INC SCIMED LIFE SYSTEMS INC MINNEAPOLIS J DANIEL COLE FORMERLY PRESIDENT OF BAXTER INTERNATIONAL INC'S EDWARDS CRITICAL CARE DIVISION WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF DISPOSABLE MEDICAL DEVICES 9304050175 930405 QUARTERLY MUTUAL FUNDS REVIEW BARGAINS IN THE CLOSEDEND FUNDS ARE TOUGHER TO FIND THESE DAYS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MONEY MANAGER WILLIAM LIPPMAN IS SUPPOSED TO INVEST IN PUBLICLY TRADED MUTUAL FUNDS THAT ARE SELLING AT BARGAIN PRICES HIS PROBLEM HE CAN HARDLY FIND ANY FUNDS WORTH BUYING MR LIPPMAN WHO IS 68 YEARS OLD RUNS THE FRANKLIN BALANCE SHEET INVESTMENT FUND A MUTUAL FUND THAT WAS LAUNCHED THREE YEARS AGO WITH THE IDEA THAT HALF OF THE FUND'S ASSETS WOULD BE INVESTED IN REGULAR STOCKS AND THE OTHER HALF WOULD BE PUT TO WORK IN PUBLICLY TRADED FUNDS BUT THESE DAYS MR LIPPMAN CAN ONLY FIND A DOZEN PUBLICLY TRADED FUNDS WORTH BUYING WHICH TOGETHER ACCOUNT FOR JUST 22 OF THE FRANKLIN FUND'S ASSETS WE HAVE A WHOLE LIST OF FUNDS WE LIKE AND WOULD BUY BUT NOT AT THESE PRICES SAYS MR LIPPMAN YOU MIGHT DRAW THE CONCLUSION THAT THIS MARKET IS AT A PRETTY HIGH GROUND PUBLICLY TRADED FUNDS ALSO KNOWN AS CLOSEDEND FUNDS OR EXCHANGETRADED FUNDS WERE ONCE A BARGAIN HUNTER'S PARADISE BECAUSE THEY OFFERED THE CHANCE TO BUY 1 OF ASSETS FOR 80 CENTS BUT THESE DAYS THOSE SORTS OF BARGAINS ARE RARE SPOTTING A CHEAPLY PRICED CLOSEDEND FUND IS EASY ENOUGH ALL YOU HAVE TO DO IS COMPARE TWO PRICES THE FUND'S PUBLICLY TRADED SHARE PRICE AND THE PERSHARE VALUE OF THE FUND'S UNDERLYING PORTFOLIO HOLDINGS IF THE FUND'S SHARE PRICE IS TRADING BELOW THE FUND'S PERSHARE PORTFOLIO VALUE THE FUND IS SAID TO BE TRADING AT A DISCOUNT CONVERSELY IF THE SHARE PRICE IS ABOVE THE PERSHARE PORTFOLIO VALUE THE FUND IS AT A PREMIUM FUNDS USUALLY CALCULATE THEIR PERSHARE PORTFOLIO VALUE WHICH IS FORMALLY KNOWN AS THEIR NET ASSET VALUE AT LEAST ONCE A WEEK THE WALL STREET JOURNAL PUBLISHES THIS DATA ON MONDAYS TOGETHER WITH THE FUND'S SHARE PRICE AND THE SIZE OF THE DISCOUNT OR PREMIUM THESE DAYS THE SHARES OF MANY FUNDS ARE TRADING AT ONLY MODEST DISCOUNTS OR EVEN AT PREMIUMS TO THE FUNDS' PERSHARE PORTFOLIO VALUE ACCORDING TO FUND RESEARCHER LIPPER ANALYTICAL SERVICES CLOSEDEND STOCK FUNDS ARE SELLING AT AN AVERAGE DISCOUNT OF 11 WHILE CLOSEDEND BOND FUNDS ARE AT A 25 PREMIUM THIS TELLS YOU THAT CLOSEDEND FUNDS AREN'T VERY ATTRACTIVE SAYS MR LIPPMAN BASED IN FORT LEE NJ MR LIPPMAN HAS WORKED IN THE MUTUAL FUND INDUSTRY SINCE 1955 BUT HE STARTED OUT AS A FUND MARKETER AND ONLY TURNED TO MONEY MANAGEMENT IN 1964 AT THE AGE OF 39 MR LIPPMAN FOUNDED ONE MUTUAL FUND COMPANY PILGRIM GROUP BUT SOLD OUT IN 1984 HE JOINED FRANKLIN RESOURCES THE US'S FOURTHLARGEST FUND COMPANY IN 1988 THESE DAYS MR LIPPMAN MANAGES 600 MILLION IN ASSETS INCLUDING THE 300 MILLION FRANKLIN RISING DIVIDENDS FUND BY CONTRAST THE FRANKLIN BALANCE SHEET INVESTMENT FUND IS TINY IT HAS 8 MILLION IN ASSETS 3 MILLION OF WHICH IS FRANKLIN'S OWN MONEY SALES OF THE FRANKLIN FUND SEEM TO HAVE BEEN HURT BY THE FUND'S 15 SALES COMMISSION WHICH IS HIGH ENOUGH TO DETER NOLOAD FUND BUYERS BUT TOO LOW TO CATCH THE ATTENTION OF COMMISSIONHUNGRY BROKERS THE FUND WHICH WAS LAUNCHED IN APRIL 1990 HAS REMAINED SMALL DESPITE GOOD PERFORMANCE IT BEAT THE STANDARD & POOR'S 500STOCK INDEX HANDILY IN 1991 AND 1992 AND SO FAR THIS YEAR THE FUND IS ONCE AGAIN RUNNING AHEAD OF THE MARKET WHILE MR LIPPMAN DOESN'T FIND MANY BARGAINS AMONG CLOSEDEND FUNDS THERE ARE A FEW FUNDS THAT HE STILL LIKES AMONG THEM IS THE INEFFICIENTMARKET FUND A SMALLCOMPANY STOCK FUND THAT CLOSED FRIDAY AT 975 WHICH IS A 13 DISCOUNT TO ITS 1117 PERSHARE PORTFOLIO VALUE IT'S IN A GOOD AREA OF THE MARKET SAYS MR LIPPMAN WE BOUGHT THAT ONE ABOUT A MONTH AGO WE'LL LIKELY ADD TO THAT POSITION AS CASH COMES INTO THE FUND MR LIPPMAN FAVORS FOREIGNSTOCK FUNDS SUCH AS IRISH INVESTMENT FUND MEXICO FUND AND SCUDDER NEW EUROPE FUND HE ALSO LIKES SOME MORE SPECIALIZED US STOCK FUNDS SUCH AS SOUTHEASTERN THRIFT & BANK FUND AND COUNSELLORS TANDEM SECURITIES FUND WHICH INVESTS LARGELY IN UTILITIES ALL OF THESE ARE OK BUT NONE OF THEM ARE OUTSTANDING SCREAMING BARGAINS SAYS MR LIPPMAN HE IS MORE ENTHUSIASTIC ABOUT THREE DUALPURPOSE FUNDS CONVERTIBLE HOLDINGS GEMINI II AND QUEST FOR VALUE DUAL PURPOSE FUND A DUAL PURPOSE FUND HAS TWO CLASSES OF SHARES OUTSTANDING INCOME SHARES AND CAPITAL SHARES THE INCOME SHARES GET ALL THE INCOME KICKED OFF BY THE FUND'S PORTFOLIO WHILE THE CAPITAL SHARES BENEFIT FROM ANY GAINS IN THE VALUE OF THE SECURITIES HELD BY THE FUND IN THE CASE OF ALL THREE FUNDS MR LIPPMAN OWNS THE CAPITAL SHARES HE NOTES THAT THE THREE FUNDS WILL ALL LIQUIDATE OR CONVERT INTO REGULAR MUTUAL FUNDS IN 1997 WHICH WILL HAVE THE EFFECT OF CLOSING THE DISCOUNTS ON THE CAPITAL SHARES CONVERTIBLE HOLDINGS CLOSED FRIDAY AT A 24 DISCOUNT GEMINI AT 12 AND QUEST AT 9 FROM A VALUE POINT OF VIEW PROBABLY GEMINI IS THE MOST ATTRACTIVE SAYS MR LIPPMAN IT'S RUN BY A GOOD MANAGER IN ADDITION TO CLOSING THE DISCOUNT WE THINK HE'LL PERFORM WELL GEMINI II IS MANAGED BY JOHN NEFF WHO IS BEST KNOWN AS MANAGER OF VANGUARD WINDSOR FUND MR LIPPMAN SAVES HIS GREATEST ENTHUSIASM FOR A CLOSEDEND FUND HE DOESN'T OWN HAMPTON UTILITIES TRUST CAPITAL SHARES THE FUND'S CAPITAL SHARES TRADE AT A 9 DISCOUNT BUT THAT DISCOUNT IS LIKELY TO EVAPORATE BY EARLY 1994 WHEN SHAREHOLDERS WILL VOTE ON WHETHER TO CONVERT THE FUND INTO A REGULAR MUTUAL FUND WHY HASN'T MR LIPPMAN BOUGHT HAMPTON UTILITIES FOR THE FRANKLIN BALANCE SHEET INVESTMENT FUND BECAUSE MR LIPPMAN AND COLLEAGUE BRUCE BAUGHMAN ARE THE MANAGERS OF THE HAMPTON FUND WE THINK IT'S A HELL OF A BUY SAYS MR LIPPMAN WE KNOW THE MANAGEMENT WE'RE ENTHUSED ABOUT THE MANAGEMENT OTHER FUND EXPERTS AGREE IT'S ONE OF THE FEW THINGS I'M BUYING RIGHT NOW SAYS RON OLIN PRESIDENT OF DEEP DISCOUNT ADVISORS AN ASHEVILLE NC MONEY MANAGER AT A 9 OR 10 DISCOUNT AND WITH A YEAR TO RUN THAT'S A GOOD ENOUGH REASON TO BUY THE FUND THE PROBLEM IS IT'S VERY THINLY TRADED SO IT'S TOUGH TO BUY MONEY MANAGER WILLIAM LIPPMAN RECKONS THERE AREN'T MANY PUBLICLY TRADED FUNDS WORTH BUYING AT TODAY'S PRICES BUT HE STILL LIKES THE FUNDS LISTED BELOW 9304050174 930405 WHO'S NEWS GRUNTAL & CO GRUNTAL & CO NEW YORK JOSEPH BATTIPAGLIA 37 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF CHIEF INVESTMENT STRATEGIST HE PREVIOUSLY WAS DIRECTOR OF RESEARCH AT THIS SECURITIES FIRM MICHAEL LATRONICA 40 WAS NAMED DIRECTOR OF RESEARCH SUCCEEDING MR BATTIPAGLIA MR LATRONICA PREVIOUSLY WAS DIRECTOR OF RESEARCH AT MARTIN SIMPSON & CO A NEW YORK BROKERAGE FIRM 9304050173 930405 WHO'S NEWS NATIONAL MEDICAL ENTERPRISES INC NATIONAL MEDICAL ENTERPRISES INC SANTA MONICA CALIF LESTER P KORN WAS ELECTED A DIRECTOR OF THIS HEALTH CARE SERVICES CONCERN INCREASING BOARD MEMBERSHIP TO 18 MR KORN 57 YEARS OLD IS CHAIRMAN OF KORN TUTTLE CAPITAL GROUP AND CHAIRMAN EMERITUS OF KORN/FERRY INTERNATIONAL HE SERVED AS US AMBASSADOR TO THE UNITED NATIONS IN 1987 AND 1988 9304050172 930405 WHO'S NEWS KYOCERA CORP KYOCERA CORP KYOTO JAPAN BENEDICT P ROSEN 56 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THE COMPANY'S AVX CORP UNIT MYRTLE BEACH SC THE UNIT IS A MANUFACTURER AND DISTRIBUTOR OF ELECTRONIC PARTS MR ROSEN REMAINS PRESIDENT AND WILL CONTINUE ACTING AS CHIEF OPERATING OFFICER OF AVX IN HIS NEW POSITION HE SUCCEEDS MARSHALL D BUTLER 66 WHO RETIRED KYOCERA IS A CERAMICS AND ELECTRONICS COMPANY 9304050171 930405 MANAGER'S JOURNAL IN OFFICE SECURITY SEEING IS BETTER THAN BEING SEEN BY JEFFREY GOLDBERG HAMAD IS AN ISLAMIC JIHAD TERRORIST WHO ONCE GAVE ME SOME SIMPLE BUT VALUABLE ADVICE ABOUT HOW TO AVOID DEATH AT THE HANDS OF TERRORISTS I MET HAMAD IN THE SPRING OF 1991 WHILE HE AND SEVERAL THOUSAND OF HIS COLLEAGUES WERE UNDER OUR GUARD AT A PRISON IN THE NEGEV DESERT HE WAS SERVING A FOURYEAR SENTENCE FOR THROWING A FIREBOMB AT AN ISRAELI GASOLINE TRUCK BUT HE CLAIMED THE ARMY GOT THE WRONG MAN I SUSPECT HOWEVER HE WAS JUST EMBARRASSED BECAUSE HE MISSED THE TRUCK UNLIKE MOST OF HIS COMRADES HAMAD HAD A BIG MOUTH AND THOUGH THIS MAY SOUND RIDICULOUS SOMETHING AKIN TO A KIND HEART ONCE DURING A POINTLESS ARGUMENT ABOUT THE MORALITY OF VIOLENCE HE STARTLED ME BY SAYING IF YOU ACT AS IF YOU'RE THE NEXT TARGET YOU'LL NEVER BE THE NEXT TARGET APPARENTLY HE WAS TRYING TO GET ME THROUGH RESERVE DUTY FORGET GUNS AND EXTRA GUARDS HE CONTINUED THAT'S JUST FOR SHOW WHAT HAMAD WAS TELLING ME WAS THAT FIVE GUARDS WHO KNOW HOW TO SPOT TERRORISTS ARE WORTH A BATTALION OF POORLY TRAINED TROOPS IF YOU LOOK LIKE YOU SEE THEM COMING HAMAD ADDED THEY WON'T COME IN THE WAKE OF THE WORLD TRADE CENTER BOMBING AND THE DISCOVERY OF A MIDWESTBASED ABU NIDAL TERRORIST NETWORK SOME US BUSINESSES ARE TAKING ON THE APPEARANCE OF ARMED BUNKERS WE NOW SEE PICTURES OF EMPLOYEES AT THE NEWLY REOPENED TRADE CENTER LINING UP TO SHOW THEIR IDENTIFICATION BADGES NICE TOUCH BUT ANYONE CAN FAKE AN ID BADGE AND NO SECURITY GUARD HOWEVER VIGILANT CAN REMEMBER 20000 FACES WHILE SECURITY SYSTEMS AT MANY US BUSINESSES MAY BE MORE VISIBLE THAN BEFORE THE WORLD TRADE CENTER BOMBING HAMAD AND HIS FRIENDS WOULD LIKELY SCOFF AT SECURITY THAT FOCUSES MORE ON BEING SEEN THAN ON SEEING RECENTLY I CONDUCTED AN UNSCIENTIFIC CHECK OF SECURITY AT SEVERAL MANHATTAN OFFICE BUILDINGS AND PUBLIC FACILITIES LATE ONE EVENING AT AN EAST SIDE HIGH RISE THAT HOUSES EIGHT MISSIONS TO THE UNITED NATIONS I SIGNED THE DESK REGISTER AS ABU NIDAL OF ISLAMIC JIHAD INC IN FULL VIEW OF THE GUARD WHO WORE A NAVY BLUE UNIFORM WITH EPAULETS I THEN PULLED OUT A SKETCH PAD FROM A KNAPSACK AND DREW A DETAILED LAYOUT OF THE LOBBY AFTER RIDING THE ELEVATOR FOR 10 MINUTES I LEFT THE BUILDING THE GUARD WAS NAPPING ON ANOTHER OCCASION I WENT WITH RAMI HARARI AN ISRAELI WHO HEADS THE NEW YORK OFFICE OF AN INTERNATIONAL SECURITY FIRM TO THE GRAND CENTRAL TERMINAL/MET LIFE COMPLEX SPENDING TIME WITH PEOPLE IN MR HARARI'S FIELD CAN BE JARRING AND ILLUMINATING ALMOST EVERYTHING IS A THREAT TO THEM LOOK AT THE GARBAGE CAN HE SAID POINTING TO THE AESTHETICALLY PLEASING BLUE BINS SURROUNDING THE STATION IT SHOULD BE TRANSPARENT IT'S VERY EASY TO PUT A BOMB INSIDE WE LOITERED AROUND THE MET LIFE BUILDING'S MAIN ELEVATOR BANK FOR A COUPLE OF MINUTES UNOBSERVED BY THE THREE GUARDS ALSO LOITERING NEAR THE ELEVATOR BANK WE RODE UP AND DOWN FOR A WHILE WE GOT OFF ON AN UPPER FLOOR THAT IS HOME TO A LAW FIRM IN FULL VIEW OF A RECEPTIONIST WE STOOD IN THE LOBBY AND SURVEYED THE ELEVATORS AND EXITS FOR TWO MINUTES THEN WE LEFT NO ONE ASKED US WHO WE WERE OR EVEN CALLED SECURITY AT ANOTHER OFFICE BUILDING ONE THAT REQUIRES EVERYONE ENTERING TO SHOW A BADGE I WAS ADMITTED AFTER I FLASHED AN EXPIRED LIBRARY CARD LIKE THE WORLD TRADE CENTER THE BUILDINGS WE VISITED DID NOT LACK FOR SECURITY INFRASTRUCTURE GUARDS AND CAMERAS EVEN THOSE WITH NO FILM DO SERVE AS DETERRENTS AT LEAST UNTIL TERRORISTS CONDUCTING SURVEILLANCE SEE THAT GUARDS AREN'T PAYING ATTENTION TO THEM OR TO THEIR VIDEO MONITORS WHAT IS MISSING IN MANY OF THESE BUILDINGS IS AN UNDERSTANDING THAT THE MOST IMPORTANT SECURITY PERSONNEL ARE NOT THE HIGHPROFILE GUYS WEARING EPAULETS BUT ANY WELLTRAINED EMPLOYEES TERRORISTS LIKE HAMAD KNOW THE DIFFERENCE SHORTLY AFTER A 1968 HIJACKING EL AL'S SECURITY CHIEFS REALIZED THEY NEEDED A BETTER WAY TO SCREEN PASSENGERS OUT OF THIS CONCERN THEY DEVELOPED A PROFILING SYSTEM NOW USED BY MOST MAJOR AIRLINES OVER THE PAST 25 YEARS TERRORISM EXPERTS HAVE BUILT ACCURATE PROFILES OF THE TYPE OF PEOPLE LIKELY TO COMMIT TERRORIST ACTS THOUGH EL AL AND OTHER HIGHRISK COMPANIES EMPLOY PERSONNEL DEVOTED EXCLUSIVELY TO SECURITY ALL EMPLOYEES ARE MADE FAMILIAR WITH THE BASIC PROFILE OF A LIKELY TERRORIST AND WITH THE SORT OF BEHAVIOR THAT SOMEONE FITTING THE PROFILE WOULD LIKELY EXHIBIT IF HE DID INDEED COME TO COMMIT VIOLENCE AT REASONABLE COST AND IN A RELATIVELY SHORT PERIOD OF TIME A BUSINESS CAN HAVE A PROFILE BUILT OF ITS LIKELY ENEMIES ITS EMPLOYEES ESPECIALLY PEOPLE SUCH AS CUSTODIANS AND PARKING ATTENDANTS WHO WORK NEAR ACCESS AREAS CAN THEN BE TAUGHT THE BASIC PATTERNS OF SUSPICIOUS BEHAVIOR INCLUDING THE WARNING SIGNS THAT TERRORISTS EVEN COOLHEADED ONES UNWITTINGLY TELEGRAPH A GARAGE ATTENDANT ALERT TO PEOPLE WHO FIT A CERTAIN PROFILE MAY VERY WELL HAVE LOOKED MORE CLOSELY AT THE DRIVER OF THE VAN THAT LATER BLEW UP THE EMPLOYEES MUST KNOW WHAT YOU WANT THEM TO INSPECT WHERE TO OPEN THEIR EYES WHOM TO STOP WHAT IS THE PROFILE OF A SUSPICIOUS PERSON WHAT KIND OF CAR TERRORISTS ARE MOST LIKELY TO USE SAYS ISAAC YEFFET THE FORMER HEAD OF WORLDWIDE SECURITY FOR EL AL AND NOW A PRIVATE SECURITY CONSULTANT BASED IN NEW JERSEY EMPLOYEES SHOULD BE TAUGHT TO BE ALERT TO ANYTHING THAT IS NOT 100 NORMAL THEY SHOULD NOT FEAR BEING WRONG PROFILING IS NOT FOOLPROOF MR HARARI SAYS THE SYSTEM IS BUILT ON EXPECTATIONS I'M NOT SAYING THAT A REAL SHLEPPER DRIVING A MERCEDES INTO THE GARAGE IS NECESSARILY A TERRORIST BUT ANYTHING THAT STRIKES YOU AS OUT OF THE ORDINARY SHOULD MAKE YOU ASK QUESTIONS IN 1986 EL AL SECURITY AGENTS AT HEATHROW AIRPORT CHOSE TO QUESTION JUST A HANDFUL OF PEOPLE BOARDING A FLIGHT HEADING FOR TEL AVIV ONE OF THE PEOPLE QUESTIONED WAS A PREGNANT WOMAN TRAVELING ALONE WHO TOLD AGENTS SHE WAS GOING ON VACATION SHE WAS UNKNOWINGLY CARRYING A BOMB THOROUGH TERRORISTS LEARN BY WATCHING AND TESTING SECURITY AT PLACES THEY HOPE TO TARGET IT'S PROBABLE THAT THOSE WHO CHOOSE TARGETS WILL TAKE THEIR BOMB ELSEWHERE IF THEY SEE EMPLOYEES ENGAGING IN COUNTERSURVEILLANCE WHEN A TERRORIST SEES THAT IT'S MISSION IMPOSSIBLE HE'LL GO SOMEWHERE ELSE TO LOOK MR YEFFET SAID THOSE WITH A GRUDGE AGAINST AMERICANS HAVE BEEN HEARTENED BY THE EASE WITH WHICH THE TWIN TOWERS COMPLEX WAS BOMBED THOUGH THE THREAT OF TERRORISM EVEN AFTER THE BOMBING STILL SEEMS VAGUE TO MANY IT IS BECOMING INCREASINGLY PRUDENT FOR PEOPLE TO THINK OF REASONS WHY A TERRORIST WOULD TARGET THEM NOT WHY A TERRORIST WOULDN'T BY THE WAY HAMAD MAY BE THE ONE TARGETING YOU HE ALWAYS WANTED TO VISIT AMERICA HE SAID MR GOLDBERG IS NEW YORK BUREAU CHIEF OF THE FORWARD A JEWISH WEEKLY HE SERVED AS A RESERVIST IN THE ISRAELI DEFENSE FORCE IN THE GULF WAR 9304050170 930405 INDONESIAN OFFICIALS SUSPEND BROKER FIRMS OVER FAKE CERTIFICATES JAKARTA INDONESIA PT BURSA EFEK JAKARTA THE OPERATOR OF THE JAKARTA STOCK EXCHANGE ANNOUNCED THE SUSPENSION OF FOUR BROKERAGE HOUSES THAT IT SAYS HANDLED FAKE SHARE CERTIFICATES LAST MONTH PT SRIKANDI SECURITAS INVESINDO PT ANEKAREKSA SECURITIES PT BHAKTI INVESTAMA AND PT MASHILL JAYA SECURITIES WERE GIVEN 10 DAYS TO SETTLE OBLIGATIONS INCURRED IN TRADING FAKE SHARE CERTIFICATES OF FIVE LISTED COMPANIES BEJ AS THE EXCHANGE IS KNOWN SAID THAT THE SANCTIONS WILL BE LIFTED ONCE THE FIRMS MEET THE REQUIREMENTS ALSO THE EXCHANGE LIFTED THE TRADING SUSPENSION IMPOSED MARCH 29 ON SHARES OF THREE COMPANIES FOR WHOM FAKE CERTIFICATES WERE DISCOVERED PT SEMEN GRESIK PT INTI INDORAYON UTAMA AND PT HM SAMPOERNA WERE ALLOWED TO RESUME TRADING EARLIER BEJ LIFTED THE SUSPENSION OF PT INCO SHARES TRADING IN ONE COUNTER PT INDAH KIAT PULP & PAPER REMAINS SUSPENDED UNTIL BEJ IS SATISFIED THAT ALL THE FAKE SHARES HAVE BEEN ACCOUNTED FOR AUTHORITIES DISCOVERED IN LATE MARCH THAT CERTIFICATES FOR MORE THAN ONE MILLION SHARES WERE FABRICATED BROKERS BELIEVE THAT LOSSES INCURRED BY THEIR BUYERS AMOUNT TO ABOUT 5 MILLION THE EPISODE IS APPARENTLY UNRELATED TO A SIMILAR THOUGH SMALLER DISCOVERY OF PHONY SHARE CERTIFICATES LAST YEAR THE INDONESIAN GOVERNMENT SAID IT IS SEARCHING FOR LUKMAN HARTONO AND HERLINA SALIM EXECUTIVES OF A SMALL TRADING COMPANY WHO ARE SUSPECTED OF MAKING AND SELLING THE FAKES THE IMMIGRATION DEPARTMENT HAS ISSUED ORDERS BARRING THE TWO FROM LEAVING THE COUNTRY THOUGH IT'S WIDELY BELIEVED THEY ARE ALREADY IN HONG KONG OR ELSEWHERE OVERSEAS BEJ ANNOUNCED THE PROBLEMS WITH FAKE CERTIFICATES AND THE SUSPENSION IN TRADING OF THE FIVE SHARES ON MARCH 29 THE DAY THE MARKET REOPENED AFTER A ONEWEEK BREAK FOR ISLAMIC HOLIDAYS THE ANNOUNCEMENTS CAUSED A REDUCTION IN TRADING ON THE EXCHANGE DAILY TURNOVER LAST WEEK AVERAGED ABOUT 20 BILLION RUPIAH 97 MILLION ONLY ABOUT HALF THE LEVEL OF SOME RECENT WEEKS HASAN ZEIN MAHMUD BEJ PRESIDENTDIRECTOR SAID HE HOPES THE SUSPENSION OF THE BROKERAGE FIRMS WILL HELP BOOST MARKET CONFIDENCE AND VOLUMES 9304050169 930405 WHO'S NEWS NIKKO SECURITIES NIKKO SECURITIES CO TOKYO JEFFREY L HARFST 52 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT AND COCHIEF FINANCIAL OFFICER OF NIKKO SECURITIES CO INTERNATIONAL THE NEW YORKBASED US UNIT OF THIS JAPANESE SECURITIES COMPANY MR HARFST HAS BEEN A SENIOR PARTNER IN THE SECURITIES INDUSTRY PRACTICE OF ERNST & YOUNG HE WILL SERVE AS COCHIEF FINANCIAL OFFICER WITH HIDEAKI IMANI SENIOR VICE PRESIDENT 9304050168 930405 WHO'S NEWS NORTH CANADIAN OILS LTD NORTH CANADIAN OILS LTD CALGARY ALBERTA BARRY COCHRANE 57 YEARS OLD WAS NAMED CHAIRMAN OF THIS OIL AND GAS CONCERN SUCCEEDING PAUL MARSHALL 69 WHO RESIGNED MR COCHRANE IS PRESIDENT AND CHIEF EXECUTIVE OF NORCEN ENERGY RESOURCES LTD A CALGARY OIL AND GAS CONCERN THAT ACQUIRED CONTROL OF NORTH CANADIAN LAST WEEK NORTH CANADIAN OILS ALSO NAMED BRUCE FENWICK GEORGE KENDA TED LEEW WAYNE NEWHOUSE AND PAUL PALMER TO THE BOARD ALL ARE OFFICERS OF NORCEN ENERGY THE FOLLOWING DIRECTORS RESIGNED FROM THE NORTH CANADIAN BOARD JAMES KAY DAVID KERR ALFRED POWIS AND ALAN THOMAS 9304050167 930405 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 LOW 3 1/16 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 239 DAYS 320 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 317 30 DAYS 318 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 269 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 313 ONE MONTH 313 THREE MONTHS 323 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 304 90 DAYS 310 120 DAYS 312 150 DAYS 313 180 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 MONDAY MARCH 29 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 296 13 WEEKS 304 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 742 60 DAYS 752 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 736 60 DAYS 746 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 278 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304050166 930405 DIGITAL TO ABANDON RED BRICK COMPLEX IN MAYNARD MASS TROUBLED COMPUTER MAKER SET TO MOVE TO NEARBY OFFICES TO SAVE 15 MILLION A YEAR BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL IT WAS JUST AN ABANDONED BUILDING BUT THE RAMBLING RED BRICK MILL IN MAYNARD MASS CAME TO REPRESENT THE HEART AND SOUL OF DIGITAL EQUIPMENT CORP NOW THE MAYNARD MILL COMPLEX IS BEING ABANDONED AGAIN AS THE TROUBLED COMPUTER MAKER SAID IT WILL CUT COSTS BY MOVING ITS HEADQUARTERS TO NEARBY OFFICES THAT HOUSE OTHER DIGITAL OPERATIONS IT SADDENS ME FRANKLY ROBERT PALMER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN ANNOUNCING THE RELOCATION PLAN WHICH WILL SAVE THE COMPANY ABOUT 15 MILLION A YEAR BUT HE ADDED THAT THE SAVINGS ARE OVERWHELMINGLY COMPELLING THAT WE HAVE TO MOVE OUT OF THIS FACILITY THE MOVE TO BEGIN THIS SUMMER AND TO BE COMPLETED IN TWO YEARS IS PART OF A COSTCUTTING PROGRAM THAT BEGAN IN 1989 SINCE THEN THE COMPANY FACED WITH FLAT SALES AND MOUNTING LOSSES HAS TRIMMED ITS WORK FORCE BY 25 TO 102100 AND SHRUNK THE OFFICE AND COMMERCIAL SPACE IT USES BY 21 OR 87 MILLION SQUARE FEET SAVING 219 MILLION IN SPACE COSTS ALONE THE FORMER MILL MUCH LIKE DIGITAL IS QUINTESSENTIAL NEW ENGLAND BUILT IN 1847 THE MILL SUPPLIED WOOLEN CLOTH BLANKETS AND FLANNELS TO THE UNION ARMY DURING THE CIVIL WAR IN 1957 SEVEN YEARS AFTER THE MILL HAD SHUT DOWN DIGITAL A SMALL COMPUTER STARTUP MOVED IN UNDER THE DIRECTION OF FOUNDER KENNETH H OLSEN WHO LEFT THE COMPANY LAST YEAR DIGITAL GREW TO BECOME THE SECONDLARGEST COMPUTER COMPANY IN THE COUNTRY IT EXPANDED ITS SPACE IN THE MILL FROM 8600 SQUARE FEET TO 11 MILLION SQUARE FEET WITH THE RAMBLING HALLWAYS MAPLE FLOORS AND TALL WHITE CLOCK TOWER COMING TO SYMBOLIZE NEW ENGLAND'S TRANSITION FROM AN INDUSTRIAL BELT TO A HIGHTECH CENTER DIGITAL SAID IT WOULD TRANSFER OPERATIONS TO OTHER DIGITALOWNED FACILITIES IN EASTERN MASSACHUSETTS WITH THE CORPORATE OFFICES MOVING TO THE POWDERMILL ROAD CAMPUS COMPLEX IN MAYNARD THE COMPUTER MAKER ALSO ANNOUNCED THE APPOINTMENT OF A MANAGER TO WORK WITH VARIOUS GROUPS INCLUDING THE TOWN OF MAYNARD THE STATE OF MASSACHUSETTS THE FEDERAL GOVERNMENT AND PRIVATE DEVELOPERS TO HELP CREATE PLANS FOR THE REUSE OF THE COMPLEX THAT WILL GENERATE THE MAXIMUM ECONOMIC AND SOCIAL VALUE RESPONDING TO QUESTIONS FROM THE MEDIA MR PALMER SAID THE COMPANY DOESN'T EXPECT TO TAKE A CHARGE AS RESULT OF THE MOVE HE DECLINED TO COMMENT ON ESTIMATES BY SOME ANALYSTS THAT DIGITAL WOULD RETURN TO PROFITABILITY BY THE FISCAL FOURTH QUARTER ENDING IN JUNE FOR FISCAL 1992 ENDED JUNE 27 THE COMPANY REPORTED A LOSS OF 279 BILLION OR 2239 A SHARE INCLUDING CHARGES AND ACCOUNTING ADJUSTMENTS ON SALES OF 1393 BILLION 9304050165 930405 REVIEW & OUTLOOK EDITORIAL PORK CARRYOUT POLLS SHOW THAT SUPPORT FOR THE CLINTON ECONOMIC PROGRAM FADES THE MORE PEOPLE LEARN THE DETAILS WHILE 81 OF AMERICANS SAY THEY KNOW THE CLINTON BUDGET WILL RAISE TAXES A WIRTHLIN GROUP POLL FOUND THAT ONLY 45 KNOW THE PLAN WOULD RAISE FEDERAL SPENDING BY 250 BILLION ONCE AWARE OF THE SPENDING INCREASES 68 SAY THEY'RE LESS LIKELY TO SUPPORT IT THAT NUMBER MIGHT BE EVEN HIGHER IF THEY KNEW THE DETAILS OF THE PRESIDENT'S 162 BILLION STIMULUS PACKAGE THE LIST BELOW TAKEN FROM THE NATIONAL CONFERENCE OF MAYORS READY TO GO BOOK OF MORE THAN 4000 PUBLIC WORKS PROJECTS GIVES A SENSE OF EXACTLY WHERE MUCH OF THE MONEY WOULD BE GOING WHILE THE READY TO GO PROJECTS AREN'T SPECIFICALLY INCLUDED IN THE STIMULUS PACKAGE HUD SECRETARY HENRY CISNEROS TOLD CONGRESS IN FEBRUARY IT IS THE LIST THE ADMINISTRATATION WILL WORK FROM IN DISPENSING THE 25 BILLION EARMARKED IN THE BILL FOR COMMUNITY DEVELOPMENT 9304050164 930405 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS INCLUDING ONE INITIAL PUBLIC OFFERING THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 19 NEW LISTINGS INCLUDING 16 INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTINGS THE BIG BOARD BEGAN TRADING AMERICAN DEPOSITARY SHARES OF CONSORCIO G GRUPO DINA SA DE CV MEXICO CITY MEXICO A SUPPLIER OF HEAVY AND MEDIUMDUTY TRUCKS UNDER DIN AS AN INITIAL PUBLIC OFFERING ALSO THE NEW YORK STOCK EXCHANGE BEGAN TRADING ON PREMDOR INC TORONTO A MANUFACTURER OF DOORS AND DISTRIBUTOR OF MOLDINGS UNDER PI PREMDOR ALSO TRADES ON THE TORONTO AND MONTREAL EXCHANGES THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET APPLIED SIGNAL TECHNOLOGY INC SUNNYVALE CALIF SYMBOL APSG A MAKER OF SIGNAL RECONNAISSANCE EQUIPMENT BROOKSTONE INC PETERBOROUGH NH BKST CONSUMER PRODUCT SPECIALTY RETAILER GILAT SATELLITE NETWORKS LTD TEL AVIV ISRAEL GILTF MAKER OF VERY SMALL APERTURE TERMINAL SATELLITE EARTH STATIONS AND EQUIPMENT UNION BANKSHARES LTD DENVER UBSC A BANK HOLDING COMPANY LEASING SOLUTIONS INC SAN JOSE CALIF LSSI WHICH LEASES INFORMATION PROCESSING AND COMMUNICATIONS EQUIPMENT ALSO ORCHARD SUPPLY HARDWARE STORES CORP SAN JOSE CALIF OSHC HARDWARE SUPERSTORE OPERATOR BANCFIRST CORP OKLAHOMA CITY OKLA BANF A BANK HOLDING COMPANY CORAL GABLES FEDCORP INC CORAL GABLES FLA CGFC A SAVINGS AND LOAN HOLDING COMPANY DAVIDSON & ASSOCIATES INC TORRANCE CALIF DAVD A PUBLISHER OF EDUCATIONAL SOFTWARE ENVIROTEST SYSTEMS CORP TUCSON ARIZ ENVI A PROVIDER OF VEHICLE EMISSIONS TESTING PROGRAMS AND ETHICAL HOLDINGS LTD ELY CAMBRIDGESHIRE ENGLAND ETHCY THE PHARMACEUTICAL COMPANY LISTED AMERICAN DEPOSITARY RECEIPTS FASTCOMM COMMUNICATIONS CORP STERLING VA FSCX A COMMUNICATIONS EQUIPMENT MAKER MOVED TO THE NASDAQ MARKET FROM THE SMALLCAP MARKET AND TWO COMPANIES FORMERLY TRADED ON THE PINK SHEETS MOVED TO NASDAQ NSA INTERNATIONAL INC MEMPHIS TENN NSAI A MAKER OF AIR FILTRATION SYSTEMS AND DISTRIBUTOR OF A LEARNING ENHANCEMENT PROGRAM FOR CHILDREN AND SUN BANCORP INC SELINSGROVE PA SUBI A MULTIBANK HOLDING COMPANY THE AMERICAN STOCK EXCHANGE SAID IT BEGAN TRADING ON ADVANCED FINANCIAL INC SHAWNEE KAN A RESIDENTIAL MORTGAGE CONCERN UNDER AVF THE STOCK PREVIOUSLY TRADED OVERTHECOUNTER THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON THE FOLLOWING ISSUES CERNER CORP KANSAS CITY MO A DEVELOPER OF CLINICAL INFORMATION SYSTEMS FOR THE HEALTH CARE INDUSTRY COAST SAVINGS FINANCIAL INC LOS ANGELES A BANK HOLDING COMPANY ENRON OIL & GAS CO HOUSTON AN INDEPENDENT GAS AND OIL CONCERN HOME SHOPPING NETWORK INC ST PETERSBURG FLA AN ELECTRONIC RETAILING CONCERN NETFRAME SYSTEMS INC MILPITAS CALIF A COMPUTER SYSTEMS DEVELOPER RIO HOTEL & CASINO INC LAS VEGAS AN ALLSUITE HOTELCASINO ROSS SYSTEMS INC REDWOOD CITY CALIF A SOFTWARE DEVELOPER SHOWBOAT INC ATLANTIC CITY NJ OWNER OF THE SHOWBOAT CASINO HOTEL ATLANTIC CITY AND THE SHOWBOAT HOTEL CASINO AND BOWLING CENTER LAS VEGAS 9304050163 930405 WHO'S NEWS OPTEK CHAIRMAN QUITS TO BECOME PRESIDENT OF FIRM'S OPCOM UNIT CARROLLTON TEXAS JAMES D CROWNOVER THE FOUNDER OF OPTEK TECHNOLOGY INC SAID HE RESIGNED AS CHAIRMAN TO BECOME PRESIDENT OF THE COMPANY'S OPCOM INC UNIT CALLING HIMSELF MORE OF A STARTUP GUY MR CROWNOVER SAID HE THOUGHT THAT OPCOM A FIVEYEAROLD FIBEROPTIC NETWORK STARTUP COULD BE BIGGER THAN THE PARENT THE UNIT WHICH IS 80OWNED BY OPTEK TECHNOLOGY NEEDED HIS FULL ATTENTION HE SAID GRANT DOVE AN OPTEK DIRECTOR WILL SERVE AS ACTING CHAIRMAN UNTIL THE PARENT COMPANY'S MAY 20 ANNUAL MEETING MR DOVE IS THE FORMER CHAIRMAN OF THE MICROELECTRONICS & COMPUTER TECHNOLOGY CORP A RESEARCH CONSORTIUM AND A ONETIME TEXAS INSTRUMENTS INC EXECUTIVE THOMAS R FILESI WILL REMAIN CHIEF EXECUTIVE AND PRESIDENT OF OPTEK POSTS HE ASSUMED FROM MR CROWNOVER LESS THAN TWO YEARS AGO OPTEK TECHNOLOGY ALSO REPORTED THAT ITS FIRSTQUARTER LOSS WIDENED TO 11 MILLION OR 33 CENTS A SHARE FROM 951000 OR 30 CENTS A SHARE A YEAR EARLIER THE MAKER OF OPTICAL SENSING DEVICES REPORTED REVENUE OF 133 MILLION FOR THE QUARTER ENDED JAN 29 UP FROM THE PRIOR YEAR'S 128 MILLION OPTEK SAID THE BULK OF ITS LOSS IN THIS YEAR'S QUARTER RESULTED FROM A PRETAX INVENTORY REDUCTION CHARGE OF 859000 OPTEK SAID IT ESTABLISHED A 3 MILLION RESTRUCTURING CHARGE FOR FISCAL 1992 AS A RESULT THE COMPANY'S LOSS OF 29 MILLION FOR THE FISCAL YEAR WAS INCREASED TO 59 MILLION THE COMPANY SAID THAT OPCOM THE UNIT BEING TAKEN OVER BY MR CROWNOVER REPORTED A LOSS OF 543000 IN THE FIRST QUARTER BUT THAT THE LOSS WAS CHARGED AGAINST THE FISCAL 1992 RESTRUCTURING PROVISION AND THUS WASN'T INCLUDED IN THE COMPANY'S FIRSTQUARTER RESULTS IN NATIONAL OVERTHECOUNTER TRADING FRIDAY OPTEK SHARES WERE UNCHANGED AT 125 9304050162 930405 POLITICS & POLICY DURENBERGER IS INDICTED ON CONDO DEAL REPUBLICAN ALLEGEDLY HID OWNERSHIP OF PROPERTY TO DEFRAUD US SENATE BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEN DAVID DURENBERGER FACES 10 YEARS IN PRISON AND A 500000 FINE BECAUSE HE ALLEGEDLY ATTEMPTED TO CHEAT THE SENATE OUT OF 3825 ACCORDING TO A FEDERAL GRAND JURY INDICTMENT MR DURENBERGER AND TWO ASSOCIATES WERE INDICTED ON CHARGES THEY HID THE MINNESOTA REPUBLICAN'S OWNERSHIP IN A MINNEAPOLIS CONDOMINIUM SO THAT HE COULD BE REIMBURSED BY THE SENATE WHEN HE STAYED THERE ON BUSINESS TRIPS AT A NEWS CONFERENCE FRIDAY IN THE CAPITOL MR DURENBERGER VOWED TO FIGHT THE CHARGES HE CALLED GROUNDLESS AND COMPLETELY FALSE THE SENATOR PLAGUED BY PERSONAL AND POLITICAL PROBLEMS FOR SEVERAL YEARS SAID HE IS UNDECIDED ABOUT SEEKING A FOURTH TERM IN 1994 BUT HE ADDED I DON'T INTEND TO RESIGN MR DURENBERGER A SPECIALIST IN HEALTHCARE ISSUES SAID THE CHARGES WOULDN'T IMPEDE HIS EFFECTIVENESS AS A LEGISLATOR THE FEDERAL GRAND JURY HERE ALSO ACCUSED MICHAEL MAHONEY A MINNEAPOLIS LAWYER AND PAUL OVERGAARD PRESIDENT OF INDEPENDENT SERVICE CO AN ALBERT LEA MINN PENSION ADVISORY COMPANY WITH PERJURY AND MAKING FALSE STATEMENTS TO THE SENATE ETHICS COMMITTEE DURING ITS 1990 INVESTIGATION INTO THE CONDOMINIUM PAYMENTS IF CONVICTED EACH FACES A MAXIMUM SENTENCE OF 20 YEARS IN PRISON AND A 1 MILLION FINE BOTH MEN HAVE DENIED WRONGDOING THE INDICTMENT ACCUSED THE THREE MEN OF DEVISING A SCHEME TO ALLOW SEN DURENBERGER TO COLLECT LODGING REIMBURSEMENTS IN 1987 AND 1988 BY BACKDATING DOCUMENTS SO IT WOULD APPEAR HE RENTED THE CONDOMINIUM FROM MR OVERGAARD'S COMPANY MESSRS DURENBERGER AND OVERGAARD AGREED THAT ISC WOULD BUY THE CONDOMINIUM FROM MR DURENBERGER WITH THE UNDERSTANDING THAT HE WOULD BE ABLE TO BUY IT BACK LATER AT THE SAME PRICE THIS EFFECTIVELY ALLOWED DEFENDANT DURENBERGER TO PARK' THE PROPERTY WITH ISC SO AS TO SHIFT THE COST OF THE UNIT TO THE SENATE BY MEANS OF VOUCHERS ACCORDING TO THE INDICTMENT THOUGH SEN DURENBERGER IS CHARGED WITH SUBMITTING VOUCHERS FOR 3825 THE INDICTMENT INDICATES HE ACTUALLY SOUGHT REIMBURSEMENT FOR MORE THAN 20000 BETWEEN APRIL 1987 AND DECEMBER 1989 THE PROPERTY SALE TO ISC TOOK PLACE AUG 27 1987 BUT THE DOCUMENTS WERE FALSIFIED TO SHOW THAT THE TRANSACTION OCCURRED APRIL 1 1987 THE INDICTMENT SAID IN A HANDWRITTEN LETTER TO MR DURENBERGER IN SEPTEMBER 1987 MR OVERGAARD SAID HE WANTED TO TERMINATE THE CONDOMINIUM SALE BECAUSE OF DELAYS IN COMPLETING THE TRANSACTION ACCORDING TO THE INDICTMENT THE LETTER SAID THE LAST THING I NEED IS TO GET INVOLVED IN YOUR ETHICS INVESTIGATION AND BE ACCUSED OF PARTICIPATING IN A SHAM TRANSACTION BY WHICH YOU COLLECT PER DIEM FROM THE SENATE ON A RESIDENCE YOU ACTUALLY OWN FRIDAY'S INDICTMENT IS JUST THE LATEST IN A SERIES OF TROUBLES FOR THE 58YEAROLD LEGISLATOR IN 1990 HE PAID 123000 IN RESTITUTION AFTER THE SENATE DENOUNCED HIM FOR THE CONDOMINIUM MATTER AND FOR HIDING SPEAKING FEES THROUGH HIS BOOK SALES TWO YEARS EARLIER HE WAS REBUKED BY THE ETHICS PANEL FOR GIVING A SPEECH THAT APPARENTLY DISCLOSED NATIONAL SECURITY SECRETS THE THIRDTERM SENATOR DESCRIBED THE INDICTMENT AS THE PRODUCT OF THE UNFETTERED AMBITION OF BUREAUCRATS WHO HAVE SPENT MILLIONS OF TAXPAYER DOLLARS TO FIND A NONEXISTENT NEEDLE IN THE HAYSTACK OF FACTS SURROUNDING THIS CASE I HAVE NOT ENGAGED IN ANY CRIMINAL CONDUCT AND NEITHER HAVE MY FRIENDS MR DURENBERGER SAID NOTING THAT THE SENATE ETHICS COMMITTEE FOUND HE HAD NO CRIMINAL INTENT IN THE CONDO MATTER HE SAID THE PROSECUTION HAD OFFERED TO FORGO CHARGES AGAINST HIS FRIENDS IF HE WOULD PLEAD GUILTY TO MISDEMEANOR CHARGES IF THE GOVERNMENT THINKS THE CASE IS THAT WEAK MR DURENBERGER SAID IT SHOULD AT THE VERY LEAST FORGO THE INDICTMENT OF MY FRIENDS AND QUIT TRYING TO COERCE ME INTO A FALSE CONFESSION JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9304050161 930405 TAIWAN'S UNEMPLOYMENT RATE TAIPEI TAIWAN TAIWAN'S SEASONALLY ADJUSTED UNEMPLOYMENT RATE STOOD AT 13 IN FEBRUARY DOWN 012 PERCENTAGE POINT FROM JANUARY ACCORDING TO THE DIRECTORATE GENERAL OF BUDGET ACCOUNTING AND STATISTICS THE DIRECTORATE DIDN'T GIVE A FIGURE FOR SEASONALLY ADJUSTED UNEMPLOYMENT IN FEBRUARY LAST YEAR THE AGENCY ALSO SAID THE UNADJUSTED UNEMPLOYMENT RATE WAS 13 IN FEBRUARY DOWN 022 PERCENTAGE POINT FROM THE YEAREARLIER MONTH BUT UP 009 PERCENTAGE POINT FROM JANUARY 9304050160 930405 NOTICE TO READERS BEGINNING NEXT WEEK THE JOURNAL WILL REORGANIZE AND COMBINE THE LISTINGS NOW INCLUDED IN THE CLOSEDEND BOND FUND AND THE PUBLICLY TRADED FUND TABLES THE CONSOLIDATED LIST TITLED CLOSEDEND FUNDS WILL NORMALLY APPEAR IN THE MONDAY EDITIONS OF THE PAPER 9304050159 930405 USX SAYS UNIT EXPECTS GAIN PITTSBURGH USX CORP SAID ITS US STEEL UNIT WILL RECORD A FIRSTQUARTER GAIN OF 17 MILLION AFTER TAXES OR 28 CENTS A SHARE FROM THE SALE OF ITS 25 STAKE IN ACE LTD A BERMUDABASED INSURER THE STEELMAKER POSTED A LOSS OF 13 MILLION OR 27 CENTS A SHARE ON SALES OF 117 BILLION IN THE YEAREARLIER QUARTER 9304050158 930405 BRAZIL'S FOREIGN DEBT INCREASES BRASILIA BRAZIL'S FOREIGN DEBT ROSE TO 104 BILLION IN THE THIRD QUARTER OF 1992 THE CENTRAL BANK SAID THAT WAS 12 HIGHER THAN IN DECEMBER 1991 BECAUSE OF A SIZABLE SALE OF GOVERNMENT BONDS AND THE RENEGOTIATION OF BRAZIL'S DEBT WITH THE PARIS CLUB OF WESTERN GOVERNMENT LENDERS THE BANK SAID THE FIGURES WERE RELEASED FRIDAY IN THE BANK'S QUARTERLY ECONOMIC REPORT 9304050157 930405 DIVIDEND NEWS CUC INTERNATIONAL INC CUC INTERNATIONAL INC A STAMFORD CONN PROVIDER OF MEMBERSHIP SERVICES DECLARED A 3FOR2 STOCK SPLIT PAYABLE APRIL 30 TO SHARES OF RECORD APRIL 16 MEMBERSHIP SERVICES INCLUDE DISCOUNT COUPON PROGRAMS HOME SHOPPING TRAVEL INSURANCE AUTO AND DINING SERVICES 9304050156 930405 SAFETY RAZOR FIRM PLANNING TO MAKE INITIAL PUBLIC OFFER BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LOOKING TO SHAVE OFF SOME OF ITS DEBT AMERICAN SAFETY RAZOR CO HAS FILED FOR AN INITIAL PUBLIC OFFERING THAT COULD RAISE ABOUT 80 MILLION FOR THE COMPANY THE STAUNTON VA MAKER OF PRIVATE LABEL RAZORS SPECIALTY RAZOR BLADES AND BAR SOAPS PLANS TO SELL FIVE MILLION NEW SHARES AT AN ESTIMATED 16 A SHARE AFTER THE OFFERING THE COMPANY WILL HAVE ABOUT 109 MILLION SHARES OUTSTANDING AND WILL BE 48OWNED BY AN INVESTING GROUP LED BY JORDAN CO NEW YORK WHICH PURCHASED THE COMPANY IN 1989 FOR 140 MILLION CURRENT INVESTORS PAID AN AVERAGE 17 CENTS A SHARE FOR THEIR HOLDINGS AMERICAN SAFETY RAZOR WHICH HAS ANNUAL REVENUE OF ABOUT 150 MILLION HAS BEEN IN VARIOUS PRIVATE HANDS SINCE IT WAS PURCHASED FROM PHILIP MORRIS COS IN THE 1960S IT HAD 142 MILLION OF LONGTERM DEBT OUTSTANDING AT THE END OF 1992 THE COMPANY HAS REQUESTED THE SYMBOL RAZR FOR OVERTHECOUNTER TRADING THE FILING INCLUDES AN ADDITIONAL 750000 SHARES FROM SELLING SHAREHOLDERS FOR POSSIBLE OVERALLOTMENT TO BROKERS UNDERWRITERS ARE SMITH BARNEY HARRIS UPHAM & CO AND SALOMON BROTHERS INC THE OVERALLOTMENT SELLERS INCLUDE MEZZANINE CAPITAL & INCOME TRUST 2001 PLC WHICH INCLUDES SEVERAL INVESTORS RELATED TO JORDAN EQUITABLE COS' EQUITABLE LIFE ASSURANCE SOCIETY OF THE US AND OTHER LENDERS WHO HOLD MUCH OF THE COMPANY'S DEBT SINCE THE 1989 BUYOUT AMERICAN SAFETY RAZOR HAS YET TO TURN A PROFIT IT POSTED LOSSES OF 52 MILLION IN 1990 403 MILLION IN 1991 INCLUDING A NEGATIVE 17 MILLION CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE FOR CERTAIN POSTRETIREMENT BENEFITS AND 32 MILLION IN 1992 INTEREST EXPENSE TOTALED 185 MILLION IN 1992 WHICH THE PROPOSED OFFERING WOULD HAVE CUT IN HALF ON A PRO FORMA BASIS ABOUT HALF OF THE COMPANY'S BUSINESS COMES FROM RAZORS AMERICAN SAFETY RAZOR SAID THAT IT IS THE LEADING MAKER OF VALUEBRAND AND PRIVATELABEL SHAVING BLADES AND RAZORS IN THE US AND THAT ITS PRIMARY COMPETITORS ARE SMALLER CLOSELY HELD COMPANIES BUT IT CAUTIONED THAT A PREMIUMBRAND COMPANY COULD ATTEMPT TO COMPETE WITH IT BY LOWERING PRICES OR ENTERING THE PRIVATELABEL MARKET THE PREMIUMBRAND SHAVING MARKET THE FILING NOTED IS DOMINATED BY GILLETTE CO ABOUT A THIRD OF AMERICAN SAFETY RAZOR'S BUSINESS COMES FROM SPECIALTY BLADES WHERE IT IS A LEADING PRODUCER OF BLADED HAND TOOLS AND SPECIALTY INDUSTRIAL BLADES AS WELL AS MEDICAL BLADES IT ALSO SELLS CUSTOM BAR SOAPS A BUSINESS WITH A VARIETY OF COMPETITORS 9304050155 930405 HAROLD'S 4THQUARTER SALES ROSE NORMAN OKLA HAROLD'S STORES INC SAID ITS TOTAL SALES GREW 32 TO 149 MILLION FOR THE FISCAL FOURTH QUARTER ENDED JAN 30 AND MORE THAN 21 TO 493 MILLION FOR THE FISCAL YEAR SAMESTORE SALES INCREASED 93 TO 121 MILLION FOR THE FOURTH QUARTER THE SPECIALTY STORE CHAIN PREVIOUSLY REPORTED ITS SAMESTORE SALES ROSE 14 FOR THE YEAR 9304050154 930405 PEPPERAND SALT WITH A SUDDEN BURST THE LAST WORD FIRST THERE ARE MANY MORE CAR PHONES THESE DAYS WASN'T COMMUNICATING BY BUMPER STICKERS ENOUGH 9304050153 930405 ENTERTAINMENT ICM PROTESTS CAA'S TIES TO FRENCH BANK BY LAURA LANDRO AND RICHARD TURNER STAFF REPORTERS OF THE WALL STREET JOURNAL LOS ANGELES CREATIVE ARTISTS AGENCY'S MAJOR RIVAL IN THE TALENT AGENCY BUSINESS IS CRYING FOUL OVER CAA'S RECENT AGREEMENT TO HELP MANAGE FRENCH BANKING GIANT CREDIT LYONNAIS SA'S 3 BILLION ENTERTAINMENT LOAN PORTFOLIO INTERNATIONAL CREATIVE MANAGEMENT CHAIRMAN JEFF BERG SAYS HIS TALENT AGENCY HAS RETAINED LEGAL COUNSEL TO EXAMINE WHETHER THE AGREEMENT VIOLATES FEDERAL AND STATE ANTITRUST LAWS AND CERTAIN PROVISIONS IN TALENT FIRMS' AGREEMENTS WITH THE SCREEN ACTORS GUILD THAT GOVERN WHAT ACTIVITIES AN AGENCY CAN ENGAGE IN AS REPORTED CREDIT LYONNAIS HAS RETAINED CAA AND ITS POWERFUL CHAIRMAN MICHAEL OVITZ TO HELP MANAGE ITS TROUBLED ENTERTAINMENT PORTFOLIO AND SEEK FURTHER INVESTMENTS IN ENTERTAINMENT AND MEDIA WORLDWIDE MR BERG STOPPED SHORT OF THREATENING LEGAL ACTION BUT DIDN'T RULE IT OUT HE SAYS ICM HAS MORE THAN 150 ACTIVE PROJECTS WITH THE 15 COMPANIES IN CREDIT LYONNAIS'S ENTERTAINMENTINDUSTRY LOAN PORTFOLIO INCLUDING METROGOLDWYNMAYER INC WHICH THE BANK EFFECTIVELY OWNS AS AN ADVISER TO CREDIT LYONNAIS MR BERG SAID COMPETITOR CAA COULD HAVE ACCESS TO SENSITIVE INFORMATION ABOUT ICM'S CLIENTS AND THEIR VARIOUS PROJECTS MR BERG SAID THAT TALENT AGENCIES UNDER THEIR AGREEMENT WITH THE SCREEN ACTORS GUILD CANNOT RECEIVE FUNDS FROM THE PRODUCTION OF MOTION PICTURES OR REPRESENT STUDIOS IN A GENERAL AGREEMENT ONLY IN SPECIFIC TRANSACTIONS HE SAID ICM'S COUNSEL WILL EXAMINE WHETHER CAA'S AGREEMENT WITH CREDIT LYONNAIS VIOLATES THE SAG AGREEMENTS MY GENERAL FEELING IS THAT THIS IS BAD BUSINESS AND OUR CLIENTS DON'T LIKE IT MR BERG SAID MR BERG SAID HE MET WITH TOP CREDIT LYONNAIS OFFICIALS LAST WEEK TO REGISTER HIS PROTESTS A SPOKESPERSON FOR THE BANK SAID ATTORNEYS HAVE LOOKED AT THIS AND WE ARE CONFIDENT THAT THERE'S NO CONFLICT OF INTEREST HERE WHAT WE HIRED CAA FOR IS THEIR KNOWLEDGE CREATIVITY AND INSIGHT IN THE ENTERTAINMENT BUSINESS THEY WILL HAVE A BROAD STRATEGIC ROLE BUT WILL NOT BE INVOLVED IN DAYTODAY OPERATIONS CAA FOR ITS PART DENIES THERE IS ANY ANTICOMPETITIVE PROBLEM OR THAT IT WILL HAVE ACCESS TO SENSITIVE INFORMATION THAT ISN'T ALREADY GENERALLY KNOWN IN THE TALENT AGENCY BUSINESS CREDIT LYONNAIS HAS ASKED CAA TO PROVIDE GUIDANCE AND ADVICE ON ENTERTAINMENT INDUSTRY MATTERS CAA SAID IN A STATEMENT WE WILL NOT BE DEALING WITH DAYTODAY MANAGEMENT ACTIVITIES OF ANY OF THE COMPANIES IN THE BANK'S LOAN PORTFOLIO WE HOPE TO BE HELPFUL TO CREDIT LYONNAIS AND ALSO HELP BRING INCREASED STABILITY TO THE INDEPENDENT FILM BUSINESS THE RIVALRY BETWEEN ICM AND CAA ALWAYS BITTER HAS INTENSIFIED RECENTLY AS CAA HAS AGGRESSIVELY DIVERSIFIED INTO NONAGENCY BUSINESSES SUCH AS ADVISING MAJOR COMPANIES ON MERGERS MARKETING AND ADVERTISING STRATEGY ICM OFFICIALS HAVE PRIVATELY CONTENDED THAT SOME OF CAA'S MOVES RAISE CONFLICTOFINTEREST QUESTIONS BUT THIS IS THE FIRST TIME MR BERG HAS PUBLICLY ATTACKED HIS RIVAL LEADING SOME TO SUGGEST A CASE OF SOUR GRAPES REPLIES MR BERG THIS IS NOT ABOUT COMPETITIVE JEALOUSY IT IS ABOUT PROTECTING THE INTERESTS OF OUR CLIENTS MR BERG ALSO DENIED THE CONTENTION BY CAA INSIDERS THAT ICM WANTED TO ADVISE CREDIT LYONNAIS ITSELF ICM NEVER PITCHED SUCH A PROPOSAL TO CREDIT LYONNAIS MR BERG SAID WHILE MGM IS ITS LARGEST HOLLYWOOD INVESTMENT CREDIT LYONNAIS'S PORTFOLIO INCLUDES MANY HARDLUCK INDEPENDENT PRODUCERS INCLUDING SEVERAL THAT HAVE LONG BEEN OUT OF BUSINESS SUCH AS THE FORMER DE LAURENTIIS ENTERTAINMENT GROUP OTHER COMPANIES IN THE PORTFOLIO INCLUDE CAROLCO PICTURES INC SCOTTI PICTURES GLADDEN ENTERTAINMENT HEMDALE PICTURES KINGS ROAD ENTERTAINMENT AND FRIES ENTERTAINMENT INC LAST WEEK AFTER TAX AND MINORITY INTERESTS THE BANK REPORTED A LOSS FOR 1992 OF 185 BILLION FRENCH FRANCS 3448 MILLION COMPARED WITH A 316 BILLION FRANC PROFIT THE PREVIOUS YEAR CREDIT LYONNAIS SAID IT SET ASIDE A TOTAL OF 147 BILLION FRANCS IN LOANLOSS PROVISIONS LAST YEAR ABOUT 40 OF THAT PROVISIONS FOR LOANS TO MGM TO GIANCARLO PARRETTI'S COMFINANCE PARRETTI GROUP AND TO TWO OTHER COMPANIES THE BANKRUPT SASEA HOLDING SA OF SWITZERLAND AND SCOTTI PICTURES THE PACT WITH CAA IS THE FIRST TIME THE TALENT AGENCY HAS BEEN RETAINED TO HELP ADVISE A FINANCIAL INSTITUTION ON TROUBLED LOANS OR THE SALE OF ASSETS CAA HAS IN THE PAST HOWEVER ADVISED MATSUSHITA ELECTRIC INDUSTRIAL CO ON THE PURCHASE OF MCA INC AND ADVISED SONY CORP ON ITS ACQUISITION OF COLUMBIA PICTURES ENTERTAINMENT INC IN BOTH THOSE CASES THE AGENCY HAD ACCESS TO DATA ON THE DEALS BETWEEN THE STUDIOS AND THEIR CLIENTS SOME OBSERVERS DOUBT ICM WOULD HAVE A STRONG CASE IF IT DECIDED TO TAKE LEGAL ACTION THE KEY IS THAT CAA REMAIN A CONSULTANT JUST ADVISING IN A PASSIVE SENSE SAID NIGEL SINCLAIR A HOLLYWOOD ATTORNEY PROMINENT IN INDEPENDENT AND INTERNATIONAL FILM FINANCING AS LONG AS THEY'RE CONSULTING AND NOTHING ELSE THEN THERE'S NOTHING MORE APPROPRIATE OR INAPPROPRIATE ABOUT IT THAN AGENCIES REPRESENTING PRODUCERS WHO AFTER ALL ALSO ARE PURCHASERS OF TALENT HOLLYWOOD'S OTHER LARGE TALENT AGENCY WILLIAM MORRIS AGENCY WOULDN'T COMMENT PRIVATELY SOME HOLLYWOOD OBSERVERS SAID AN IMPORTANT COMPONENT OF THE BANK'S HIRING OF CAA IS TO GIVE MGM BETTER ACCESS TO THE TALENT THE AGENCY REPRESENTS AND SIGNAL ITS COMMITMENT TO REVIVING THE STUDIO THERE IS A GENERAL HESITANCY AMONG TOPOFTHELINE ACTORS AND DIRECTORS ABOUT WORKING WITH MGM WHOSE TANGLED HISTORY OF OWNERSHIPS MANAGEMENTS AND FINANCIAL PROBLEMS HAS DAMAGED ANY SENSE OF STABILITY CRUCIAL IN THE MOVIE BUSINESS WHERE PROJECTS TAKE YEARS TO DEVELOP AND TO GENERATE PROFITS RUMORS PERSIST THAT THE BANK MIGHT WRITE OFF ITS ESTIMATED 2 BILLIONPLUS INVESTMENT ESPECIALLY WITH FRANCE'S SOCIALIST GOVERNMENT WHICH WAS ON WATCH AS THE BANK GOT INTO TROUBLE LOSING POWER MGM FILM CHIEF ALAN LADD JR IS WIDELY LIKED AND RESPECTED BUT HIS GREATEST FILMMAKING ACHIEVEMENTS CAME 15 YEARS AGO MGM'S RECENT FILMS SUCH AS RICH IN LOVE UNTAMED HEART AND DIGGSTOWN FAILED AT THE BOX OFFICE AND THE STUDIO'S TRIBULATIONS CONTINUE CAA CLIENT WOODY HARRELSON WALKED AWAY FROM MGM'S FORTHCOMING BENNY AND JOON TO STAR INSTEAD IN PARAMOUNT COMMUNICATIONS INC'S INDECENT PROPOSAL A MOVE FOR WHICH PARAMOUNT AND CAA PAID A 500000 SETTLEMENT BY VIRTUE OF A RECENT AGREEMENT WITH CAROLCO PICTURES MGM WOULD RELEASE AT LEAST ONE BLUECHIP FUTURE PROJECT THE CRUSADES WITH ICM CLIENT ARNOLD SCHWARZENEGGER BUT THE PROJECT IS SAID TO BE STALLED BECAUSE OF CONCERNS ABOUT MGM'S LACK OF CLOUT 9304050152 930405 LEISURE & ARTS THEATER STALKING THE PAST BY EDWIN WILSON NEW YORK THE SCENE IS A SPOT DEEP IN THE REDWOOD FOREST IN NORTHWEST CALIFORNIA WHERE LYMAN A VIETNAM VETERAN WITH A SCRUFFY BEARD AND UNKEMPT CLOTHES IS HIDING LIKE A NUMBER OF OTHER DISAFFECTED VETERANS WHO HAVE NEVER READJUSTED TO LIFE AFTER THE WAR HE HAS TAKEN REFUGE IN THE WOODS BEHIND WHAT IS CALLED THE REDWOOD CURTAIN HE IS SEATED ON A FALLEN LOG FACING A YOUNG WOMAN GERI THE DAUGHTER OF A VIETNAMESE WOMAN AND A US SOLDIER WHO HAS BEEN COMING INTO THE FOREST TRYING TO LOCATE THE FATHER SHE HAS NEVER SEEN LYMAN HAS GRABBED HER WALLET WHICH IS FILLED WITH PICTURES HE HOLDS UP ONE FOR HER TO SEE WHO'S THE GI HE ASKS I THINK THAT'S YOU SHE REPLIES AND THEN THERE IS SILENCE THE TWO SIT LOOKING AT ONE ANOTHER IS THIS HER FATHER HAVE THESE TWO FINALLY COME FACE TO FACE WE DO NOT KNOW WHAT WE DO KNOW IS THAT THE AUDIENCE REMAINS SPELLBOUND NOT JUST FOR A MOMENT BUT FOR TWO OR THREE MINUTES I CANNOT REMEMBER A TIME IN THE THEATER WHEN THE AUDIENCE SAT FOR SUCH A PROTRACTED PERIOD WITHOUT A WORD BEING SAID BUT SO SKILLFULLY HAS LANFORD WILSON LED US TO THIS POINT THAT WE ARE TRANSFIXED REDWOOD CURTAIN WHICH JUST OPENED AT THE BROOKS ATKINSON THEATRE IS MR WILSON'S 18TH FULLLENGTH PLAY HIS WORKS STRETCH BACK TO BALM IN GILEAD AND THE HOT L BALTIMORE PLAYS THAT HELPED DEFINE THE EARLY OFFBROADWAY THEATER AND CONTINUE THROUGH TALLEY'S FOLLY WHICH WON THE PULITZER PRIZE TO THE RECENT BROADWAY HIT BURN THIS HIS WRITING HAS BEEN MARKED BY LITERACY A KEEN SENSE OF THE THEATRICAL AND A DEEP CONCERN FOR THE HUMAN CONDITION REDWOOD CURTAIN I AM HAPPY TO SAY HAS ALL THREE IT IS DIRECTED BY MARSHALL W MASON WHO HAS GUIDED MR WILSON'S PLAYS FOR MANY YEARS THEIRS IS IN FACT THE MOST SUSTAINED SUCCESSFUL COLLABORATION IN THE AMERICAN THEATER TODAY FROM THE THREE PERFORMERS JEFF DANIELS AS LYMAN SUNG YUN CHO AS GERI AND DEBRA MONK WHO PLAYS GERI'S AUNT GENEVA MR MASON HAS ELICITED STRONG INDIVIDUAL PORTRAITS AS WELL AS ILLUMINATING CONFRONTATIONS THE SETTING BY JOHN LEE BEATTY IS ALMOST AS IMPRESSIVE AS A REAL REDWOOD GROVE INTO THIS DARK LOOMING PLACE GERI COMES STALKING HER PAST HAVING BEEN BROUGHT FROM ASIA AS AN INFANT SHE WAS ADOPTED BY GENEVA'S WEALTHY BROTHER LAIRD AND HIS WIFE JULIA LAIRD WAS A PIANIST BUT ALSO A VIETNAM VETERAN WHO BECAME AN ALCOHOLIC UPON HIS RETURN TO THE US GERI NOW 17 IS PRECOCIOUS MUSICALLY AS WELL AS INTELLECTUALLY AND HAS TURNED OUT TO BE A CONCERT PIANIST OF GREAT PROMISE HER REAL MISSION THOUGH IS TO LOCATE HER NATURAL PARENTS AND TO THIS END SHE VISITS HER AUNT GENEVA EVERY SUMMER AT HER HOUSE ON THE EDGE OF A REDWOOD FOREST INFESTED WITH DERELICT VIET VETS HOPING TO GO THERE AND FIND HER FATHER GENEVA WHO RESCUES GERI FROM HER FIRST ENCOUNTER WITH LYMAN IS A PRACTICAL NONONSENSE WOMAN AS PLAYED BY MS MONK SHE IS ALSO WILDLY AMUSING LIKE THE OTHER TWO CHARACTERS SHE FACES A PROBLEM OF IDENTITY SHE IS ABOUT TO LOSE HERS BECAUSE THE PART OF THE REDWOOD FOREST THAT HAS BELONGED TO HER FAMILY FOR GENERATIONS HAS BEEN SOLD TO A CONGLOMERATE WHICH SHE IS CERTAIN WILL DESTROY IT SHE FACES THIS THREAT WITH TYPICALLY BLUFF RESIGNATION HER FEET ARE ON THE GROUND BY CONTRAST YOUNG GERI IS A MYSTIC WHO CLAIMS SHE HAS MAGICAL POWERS EVERY SO OFTEN SHE CASTS A SPELL AND THE LIGHTS CHANGE AND WE HEAR THUNDER IS THIS REAL OR A FORM OF POETIC LICENSE I'M NOT CERTAIN AND I DON'T THINK THE PLAY WOULD HAVE BEEN HARMED IF THIS VOODOO HAD NEVER BEEN ADDED ALSO THE ENDING IS A BIT SENTIMENTAL THESE HOWEVER ARE SMALL QUIBBLES MOSTLY REDWOOD CURTAIN IS AN ENGROSSING DRAMA OF SUBSTANCE A REAL RARITY ON BROADWAY THESE DAYS REDWOOD CURTAIN IS ALSO PART OF THE ANNUAL STAMPEDE OF THEATER OPENINGS THAT TAKES PLACE EACH SPRING THE THEORY OF PRODUCERS IS THAT IF YOU OPEN A PLAY AS CLOSE AS POSSIBLE TO THE TONY AWARD DEADLINE IN EARLY MAY IT WILL GIVE YOU A BETTER CHANCE TO WIN AN AWARD AND THEREBY CATAPULT TO SUCCESS THE THEORY IS AS FULL OF HOLES AS A KITCHEN COLANDER BUT THEATER PRODUCERS HAVE NEVER BEEN KNOWN FOR THEIR DEPTH OF INSIGHT IN ANY CASE FOUR PLAYS HAVE OPENED IN QUICK SUCCESSION AND ACTUALLY THE RESULTS ARE NOT BAD IN ADDITION TO REDWOOD CURTAIN WENDY WASSERSTEIN'S SPIRITED COMEDY THE SISTERS ROSENSWEIG HAS MADE A SUCCESSFUL TRANSITION FROM LINCOLN CENTER TO THE ETHEL BARRYMORE THEATRE THE ROUNDABOUT HAS MOUNTED A NEW PRODUCTION OF GEORGE BERNARD SHAW'S CANDIDA AND A NEW PLAY ABOUT SOUTH AFRICA CALLED THE SONG OF JACOB ZULU HAS ARRIVED FROM THE STEPPENWOLF THEATRE COMPANY IN CHICAGO THE STORY OF JACOB ZULU IS BASED ON AN ACTUAL EVENT A BLACK MAN THE TITLE CHARACTER IS INTELLIGENT AND NONVIOLENT GRADUALLY THOUGH BECAUSE OF THE INJUSTICES VISITED ON HIM AND THOSE AROUND HIM HE BECOMES MILITANT AND PLANTS A BOMB AT A SHOPPING CENTER WHICH KILLS SEVERAL FELLOW BLACKS WHAT SETS JACOB ZULU APART IS NOT THE STORY WHICH HAS BEEN DRAMATIZED IN A PEDESTRIAN MANNER BY AUTHOR TUG YOURGRAU BUT THE WAY IT IS PRESENTED MUCH OF THE PLAY IS ACCOMPANIED BY THE MUSIC OF THE SOUTH AFRICAN GROUP LADYSMITH BLACK MAMBAZO LED BY JOSEPH SHABALALA KNOWN IN THIS COUNTRY FOR ITS CONTRIBUTION TO PAUL SIMON'S GRACELAND ALBUM THE GROUP CONSISTS OF NINE MEN SIX BASSES AND THREE TENORS WHO PRODUCE A UNIQUE BLEND OF ORGAN TONES AND TRIBAL CHANTINGA HAUNTING INFECTIOUS SOUND THAT PROVES TO BE A PERFECT BACKGROUND FOR THE ACTION IN JACOB ZULU IT IS WELL WORTH A VISIT TO THE PLYMOUTH THEATRE FOR THE MUSIC ALONE BUT THERE ARE OTHER REASONS ONE IS THE PERFORMANCE OF K TODD FREEMAN IN THE LEADING ROLE A RESOURCEFUL APPEALING ACTOR MR FREEMAN MAKES JACOB ZULU SYMPATHETIC WITHOUT PORTRAYING HIM AS A VICTIM OR A SAINT ALSO THE DIRECTION OF ERIC SIMONSON WHO IS MAKING HIS BROADWAY DEBUT MOVES FLUIDLY FROM ONE SEGMENT TO THE NEXT SHAW'S CANDIDA ABOUT A WOMAN WHO MUST CHOOSE BETWEEN HER STUFFY MINISTER HUSBAND AND THE FIERY ROMANTIC YOUNG POET WHO IS PURSUING HER IS IN SOME WAYS AS MUSTY AS THE PARSON'S OFFICE IN WHICH IT TAKES PLACE IN THE NEW PRODUCTION AT THE CRITERION CENTER MARY STEENBURGEN LACKS THE AUTHORITY AND SELFASSURANCE CANDIDA SHOULD HAVE BUT CONVEYS A CHARM AND IMPULSIVENESS THAT ARE WINNING ROBERT FOXWORTH IS SOLID AS HER HUSBAND AND ROBERT SEAN LEONARD MAKES THE MOST OF MARCHBANKS THE MOONING UTTERLY IMPRACTICAL POET 9304050151 930405 FOREIGN EXCHANGE TRADERS EXPECT DOLLAR TO HOLD ITS OWN AGAINST MARK BUT SLIDE AGAINST YEN BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK CURRENCY PLAYERS WILL BE WATCHING THE DOLLAR WITH CAUTIOUS PESSIMISM THIS WEEK FRIDAY'S SHORTCOVERING RALLY IN THE WAKE OF THE MARCH US EMPLOYMENT REPORT CONVINCED MANY TRADERS THAT THE DOLLAR WILL HOLD ITS GROUND AGAINST THE GERMAN MARK BUT WHILE THEY DON'T EXPECT THE US CURRENCY TO SINK FAR FROM LAST WEEK'S LOWS THEY SEE NO REASON TO EXPECT ANY GAINS EITHER AND WHILE THE DOLLAR IS STALLED AGAINST THE MARK ANALYSTS EXPECT MORE WEAKNESS AGAINST THE YEN WHICH HAS SURGED TO RECORD HIGHS ON THE STRENGTH OF JAPAN'S CURRENT ACCOUNT SURPLUS AND EXPECTATIONS FOR ITS PLANNED FISCAL STIMULUS PACKAGE LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 15975 MARKS AND 11375 YEN COMPARED WITH 15915 MARKS AND 11430 YEN LATE THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 15995 MARKS AND AT 11385 YEN MARCH NONFARM PAYROLLS FELL BY 22000 A FAR WEAKER REPORT THAN ANALYSTS HAD EXPECTED BUT THE LABOR DEPARTMENT LEFT FEBRUARY'S STRONG NUMBER VIRTUALLY UNCHANGED AND REVISED JANUARY'S DATA UPWARD THE RESULT AN AVERAGE GAIN OF MORE THAN 150000 A MONTH FOR THE QUARTER THAT REASSURED TRADERS WHO HAD SOLD DOLLARS AGGRESSIVELY IN ANTICIPATION OF A BLEAK JOBS OUTLOOK ASSUMPTIONS ABOUT A WEAKENING ECONOMY HAVE BEEN PUT ON HOLD SAYS PETER PFAU FOREIGN EXCHANGE MANAGER AT DEAN WITTER REYNOLDS INC ANALYSTS EXPECT THE DOLLAR TO TRADE BETWEEN 157 MARKS AND 162 MARKS THIS WEEK IT COULD DIP BACK DOWN AGAIN SAYS RONALD LEVEN GLOBAL CURRENCY STRATEGIST AT MORGAN GUARANTY TRUST CO BUT AS LONG AS THE US ECONOMY DOESN'T LOOK LIKE IT'S HEADED INTO RECESSION THERE'S NO REASON TO LOOK FOR THE DOLLAR TO BE MUCH LOWER BUT THE EMPLOYMENT PICTURE ISN'T ROBUST ENOUGH TO JUSTIFY ENTHUSIASM FOR THE DOLLAR ANALYSTS SAY YOU CAN'T IGNORE THE FACT THAT THE SITUATION DID DETERIORATE IN MARCH SAYS LISA FINSTROM CURRENCY ANALYST AT SHEARSON LEHMAN BROTHERS INC I DON'T THINK THE DOLLAR'S OUT OF THE WOODS AT ALL DEALERS WILL ALSO BE RELUCTANT TO BUY DOLLARS AS LONG AS GERMAN INTEREST RATES REMAIN HIGH ALTHOUGH THE BUNDESBANK HAS BEEN LOWERING RATES THE STEPS HAVE BEEN SO SMALL THAT CURRENCY PLAYERS HAVE BECOME IMPATIENT THE KEY POINT WILL STILL BE GERMAN RATE CUTS SAYS EARL JOHNSON FOREIGN EXCHANGE ADVISER AT HARRIS TRUST & SAVINGS BANK IN CHICAGO YOU CAN'T GET BULLISH UNTIL WE SEE GERMANY LOWER RATES THE BUNDESBANK'S DISCOUNT RATE WHICH ACTS AS A FLOOR FOR GERMAN MONEYMARKET RATES STANDS AT 750 THE LOMBARD RATE WHICH SERVES AS A CEILING IS AT 9 WHILE ANALYSTS CONSIDER THE DOLLARMARK EXCHANGE RATE TRAPPED BY STATIC INTEREST RATES THEY SEE MORE ROOM FOR THE DOLLAR TO WEAKEN AGAINST THE YEN ON FRIDAY THE DOLLAR SANK TO A NEW POSTWORLD WAR II LOW OF 11350 YEN A 9 FALL SINCE THE BEGINNING OF THE YEAR JAPAN'S WIDE CURRENT ACCOUNT SURPLUSES AND RECENT GAINS IN THE NIKKEI STOCK INDEX SHOULD KEEP THE YEN FIRM AGAINST THE DOLLAR AND OTHER CURRENCIES ANALYSTS SAY I CAN'T SEE MUCH REASON WHY IT'S NOT GOING TO CONTINUE GOING HIGHER FOR A COUPLE OF MONTHS SAYS MR LEVEN OF MORGAN GUARANTY JAPAN IS SUDDENLY AN INTERESTING PLACE TO INVEST JAPANESE FUNDS ARE SUDDENLY MORE INTERESTED IN KEEPING MONEY AT HOME INVESTORS ALSO HAVE HIGH HOPES THAT JAPAN'S NEW FISCAL STIMULUS PACKAGE WILL SPUR ITS STAGNANT ECONOMY BUT ANALYSTS CAUTION THAT THE YEN RALLY MAY SOON BE RUNNING OUT OF STEAM AND MANY EXPECT THE DOLLAR TO FIND SUPPORT AROUND 112 YEN EVEN IF THE STIMULUS PACKAGE IS SUCCESSFUL JAPAN'S ECONOMY WILL GROW SLOWLY MS FINSTROM SAYS WEIGHED DOWN BY THE NATION'S BANKING CRISIS AND ASSET DEFLATION ANY CURRENCY MOVES COULD BE EXAGGERATED THIS WEEK ESPECIALLY AMONG EUROPEAN CURRENCIES BY THE COMING EASTER HOLIDAY TRADERS AND ANALYSTS SAY EUROPEAN TRADERS IN PARTICULAR ARE LIKELY TO BEGIN SQUARING POSITIONS BEFORE FRIDAY SAYS MR PFAU OF DEAN WITTER I WOULDN'T READ TOO MUCH IMPORTANCE INTO ANYTHING WE SEE NEXT WEEK BECAUSE OF THE HOLIDAYS HE SAYS 9304050150 930405 INDUSTRY FOCUS LATEST PRICE WAR CUTS EARNINGS OF DISKDRIVE MAKERS RIVALS BLAME CONNER PERIPHERALS AS STOCKS FALL ON LOWER PROFIT ESTIMATES BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE DISKDRIVE INDUSTRY IS EMBROILED IN ANOTHER OF ITS PERIODIC PRICE WARS CONNER PERIPHERALS INC SAID FIRSTQUARTER EARNINGS FELL SUBSTANTIALLY BELOW ANALYSTS' EXPECTATIONS BECAUSE OF PRICE COMPETITION AND EXCESS CAPACITY TRIGGERING A FURTHER DROP IN THE MAJOR DISKDRIVE STOCKS AND CONTRIBUTING TO A DECLINE IN OTHER TECHNOLOGY ISSUES NOBODY'S SURE WHO FIRED FIRST ALTHOUGH SOME FOLKS HAVE A PRIME SUSPECT NAME DAVID T TOM MITCHELL DESCRIPTION HARDDRIVING EXMARINE PRESIDENT AND CHIEF OPERATING OFFICER OF CONNER PERIPHERALS USED TO KEEP A HAND GRENADE ON HIS DESK OF WHOM AN EXWIFE ONCE SAID HE'S 99 WORK AND 1 JOGGING MR MITCHELL IS A LEGENDARY FIGURE IN DISK DRIVES THE MAIN DATA STORAGE DEVICES IN COMPUTERS HE HAS A REPUTATION HONED DURING A STORMY RUN AS A TOP EXECUTIVE OF SEAGATE TECHNOLOGY INC AS A FANATICAL PURSUER OF MARKET SHARE WHATEVER THE COST CUTTING COSTS AND THEN SLASHING PRICES TO RAID COMPETITORS' CUSTOMER BASES WAS HIS FAVORED STRATEGY OF ATTACK MR MITCHELL LEFT SEAGATE AFTER A FALLING OUT WITH HIS BOSS ALAN SHUGART IN LATE 1991 PARTLY BECAUSE HIS PRICECUTTING CONTRIBUTED TO INDUSTRYWIDE PRICE WARS THAT BLOODIED EVERYONE IN THE BUSINESS INCLUDING SEAGATE BUT HE RESURFACED LAST YEAR AT CONNER RUNNING ITS MANUFACTURING OPERATIONS NOW DESPITE RECORD DEMAND FOR DRIVES THE INDUSTRY IS SUFFERING ANOTHER PLAGUE OF PRICESLASHING PRICES ON SOME PRODUCTS HAVE PLUNGED 20 IN RECENT WEEKS MARGINS ARE SHRINKING PROFITS SHRIVELING STOCKS SWOONING AND COMPETITORS ANALYSTS AND INVESTORS BELIEVE MR MITCHELL IS UP TO HIS OLD TRICKS CONNER IS CUTTING PRICES LIKE CRAZY GRUMBLES CHUCK HAGGERTY PRESIDENT AND CHIEF OPERATING OFFICER OF WESTERN DIGITAL CORP ONE OF THE BIG FIVE OF DISKDRIVE MAKERS ALONG WITH CONNER SEAGATE QUANTUM CORP AND MAXTOR CORP WE'RE IN A DEATH SPIRAL ON PRICING AND WE SUSPECT TOM MITCHELL MR MITCHELL DECLINED TO COMMENT BUT FINIS CONNER CONNER PERIPHERALS' CHAIRMAN DENIED THAT CONNER STARTED THE LATEST ROUND OF PRICECUTTING AND DEFENDED MR MITCHELL WE DID NOT PRECIPITATE THIS AND BY THE WAY WESTERN DIGITAL IS CUTTING PRICES TOO HE SAYS MR CONNER POINTS THE FINGER AT MAXTOR THEY'RE REALLY DUMPING PRODUCT HE SAYS TO WHICH WALT AMARAL MAXTOR'S CHIEF FINANCIAL OFFICER REPLIES NO WAY CONNER FIRED THE OPENING SALVO WHOEVER SHOT FIRST IT'S CLEAR DISKDRIVE MAKERS ARE BLAZING AWAY AT EACH OTHER ON PRICE WITH PREDICTABLE RESULTS DISKDRIVE MAKER PROFITS IN THE QUARTER ENDED MARCH 31 WILL BE LOUSY SAID TODD BAKAR AN ANALYST WITH HAMBRECHT & QUIST STOCKS ARE SINKING MAXTOR AND WESTERN DIGITAL ARE OFF NEARLY 50 SINCE JANUARY CONNER IS DOWN 35 AND SEAGATE AND QUANTUM HAVE FALLEN ABOUT 30 MORE FUNDAMENTALLY THIS ROUND OF PRICE WARS IS MAKING SOME INVESTORS AND ANALYSTS AND EVEN SOME DISKDRIVE EXECUTIVES WONDER IF PERIODIC FITS OF OVERPRODUCTION FOLLOWED BY BRUTAL PRICECUTTING ARE A PERMANENT FEATURE OF THIS INDUSTRY DISKDRIVE MAKERS WENT THROUGH DEBILITATING PRICE WARS IN THE LATE 1980S AFTER THE MOST RECENT PRICING BLOODBATH IN 1991 EXECUTIVES LIKE MR CONNER AND SEAGATE'S CHIEF EXECUTIVE OFFICER MR SHUGART SPOKE OF LESSONS LEARNED AND A NEW MATURITY AND RESTRAINT IN THE INDUSTRY THE LATEST PRICE FIGHT STEMS IN PART FROM THE FRANTIC PACE OF TECHNOLOGICAL CHANGE IN COMPUTERS THESE DAYS PERSONAL COMPUTER MAKERS AND USERS ARE OUTFITTING THEIR MACHINES WITH INCREASING AMOUNTS OF SOFTWARE DEMANDING MORE MEMORY AS A RESULT THE SOCALLED ENTRY LEVEL FOR STORAGE CAPACITY THE MINIMUM AMOUNT OF MEMORY FOR MOST PCS HAS MORE THAN DOUBLED TO 170 MEGABYTES IN A YEAR THAT GENERATES HEAVY PRICE PRESSURE AS COMPANIES UNLOAD OLDER DRIVES MR CONNER SAYS REPRICING OF OLDER PRODUCTS HAS BECOME ALMOST AN HOURLY THING MORE IMPORTANTLY WITH BIGGER DRIVES IN DEMAND THE BIG FIVE ARE CHURNING OUT NEW MORE POWERFUL PRODUCTS ALL AIMED AT ESSENTIALLY THE SAME CUSTOMERS AND THEY'RE ENCOUNTERING THE SAME PROBLEMS AS IN THE PAST WHEN THEY'VE ALL CRANKED UP PRODUCTION AT ONCE TOO MUCH CAPACITY OVERPRODUCTION AND INEVITABLY PRICESLASHING EVEN ON HIGHEND PRODUCTS THE PROBLEM IS COMPOUNDED BY OTHER BAD HABITS OF THE INDUSTRY ONE IS A HISTORY OF ENDOFQUARTER CLEAROUT SALES WITH INVENTORIES HIGH BECAUSE OF INCREASED PRODUCTION DRIVE MAKERS CLEARED OUT PRODUCTS AT DEEP DISCOUNTS SIMPLY TO MEET SALES TARGETS AND INVENTORY COST OBJECTIVES FOR THE MARCH 31 QUARTER ANOTHER PROBLEM THE GRAY MARKET WHERE SMALL PC CLONE MAKERS UNABLE TO COMPETE BECAUSE OF THAT INDUSTRY'S PRICE WARS ARE CANNIBALIZING THEIR OWN MACHINES FOR DRIVES AND SELLING THEM AT COST OR BELOW A LARGER FACTOR HOWEVER MAY SIMPLY BE PERSONALITIES MORE THAN MOST INDUSTRIES THE DISKDRIVE BUSINESS IS DRIVEN BY PERSONAL RIVALRIES MR CONNER FOR EXAMPLE WAS A COFOUNDER OF SEAGATE WITH MR SHUGART AND IS KNOWN TO DELIGHT IN OUTDOING HIS FORMER COLLEAGUE SOME SUGGEST THAT'S WHY HE HIRED MR MITCHELL THE BUSINESS ALSO HAS ALWAYS BEEN DOMINATED BY A FEW HARDCHARGING ENTREPRENEURS MR MITCHELL MAY BE THE TOP GUN OF THE GROUP A FORMER COLLEAGUE DESCRIBES MR MITCHELL AS EITHER A MANUFACTURING GENIUS OR A MANIAC MAYBE BOTH HE'S KNOWN FOR A VOLCANIC MANAGEMENT STYLE HE FIRED ME HUNDREDS OF TIMES RECALLS BOB MARTELL CHIEF EXECUTIVE OF CLOSELY HELD DRIVE MAKER KALOK CORP WHO WORKED WITH MR MITCHELL FOR YEARS AT SEAGATE HE'S INCREDIBLY DEMANDING AND TOUGH AT CONNER PERIPHERALS MR MITCHELL ATTACKED MANAUFACTURING COSTS WITH CHARACTERISTIC ZEAL HE FLEW TO SINGAPORE WHERE CONNER MAKES MANY OF ITS DRIVES 12 TIMES IN FIVE WEEKS ACCORDING TO ACQUAINTANCES MR CONNER SAYS THE OPERATION'S COSTS ARE DOWN AND PRODUCTIVITY UP TOM'S DONE A SUPERB JOB HE SAYS MR CONNER WON'T DISCUSS ACTUAL PRODUCTION FIGURES BUT INDUSTRY SOURCES SAY MR MITCHELL HAS VOWED TO CRANK UP QUARTERLY PRODUCTION OF 170 MEGABYTE DRIVES TO A MILLION UNITS CONSIDERED A STAGGERING AMOUNT THE RESULT SAY COMPETITORS IS THAT CONNER BEGAN CUTTING PRICES IN DECEMBER AND HASN'T STOPPED YET FOR THE TIME BEING THE STRATEGY IS ONLY CAUSING PAIN ON FRIDAY MR CONNER SAID PRICE COMPETITION AND EXCESS CAPACITY IN THE INDUSTRY HAVE CAUSED CUSTOMERS TO DEFER PURCHASES AND REDUCE LEAD TIMES FOR PURCHASE ORDERS CONNER HAD BEEN EXPECTED TO EARN 40 CENTS TO 60 CENTS A SHARE FOR THE FIRST QUARTER ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN THE YEARAGO FIRST QUARTER IT EARNED 247 MILLION OR 42 CENTS A SHARE NOW THE COMPANY IS CONTEMPLATING RESTRUCTURING ALTERNATIVES WHICH IMPLY LAYOFFS OR PLANT CLOSINGS THAT COULD RESULT IN ADDITIONAL CHARGES FOR THE PERIOD IN AN INTERVIEW SHORTLY BEFORE THE FRIDAY ANNOUNCEMENT MR CONNER NONETHELESS PROFESSED TO BE UNFAZED WHAT'S GOING ON WITH PRICING MAY SEEM LIKE CHAOS AND TO A LARGE DEGREE IS BUT IT'S NOT FATAL HE SAYS WE'RE CONFIDENT THAT WE'LL CERTAINLY EMERGE A LEANER MEANER AND MORE COMPETITIVE COMPANY IF OTHERS DON'T WELL THAT'S WHAT COMPETITION IS ALL ABOUT 9304050149 930405 INSTITUTO NACIONAL SET TO GIVE UP HOLDING IN FIAT'S IVECO UNIT SPECIAL TO THE WALL STREET JOURNAL MADRID SPAIN'S STATE INDUSTRIAL HOLDING COMPANY INSTITUTO NACIONAL DE INDUSTRIA SAID IT WILL GIVE UP ITS 40 STAKE IN IVECO PEGASO SA THE COMMERCIALVEHICLES MAKER CONTROLLED BY ITALY'S FIAT SPA INI'S EXIT COMES AS FIAT HAS DECIDED TO REDUCE IVECO'S CAPITAL TO ZERO IN ORDER TO COVER LOSSES THEN CARRY OUT A CAPITAL INJECTION OF 25 BILLION PESETAS 2198 MILLION SPANISH PRESS REPORTS SAID FRIDAY IN MILAN FIAT CONFIRMED THE REPORTS AN INI SPOKESMAN SAID THE STATE HOLDING COMPANY WILL LEAVE THE VEHICLE MANUFACTURER BY NOT SUBSCRIBING TO THE CAPITAL INCREASE AND BY GIVING UP ITS 40 STAKE INI WON'T RECEIVE REMUNERATION FOR ITS IVECO STAKE BUT IT WILL STOP LOSING MONEY THE SPOKESMAN SAID THE MOVE FORMS PART OF INI'S RESTRUCTURING PROGRAM TO RETURN TO CORE INDUSTRIAL ACTIVITIES AND GIVE UP STAKES IN THE AUTO SECTOR HE ADDED THE INI SPOKESMAN WAS UNABLE TO SAY WHAT THE 40 STAKE WAS WORTH HOW MUCH CAPITAL IVECO CURRENTLY HELD OR THE SIZE OF THE VEHICLE MAKERS' DEBT SPANISH NEWSPAPERS REPORTED THAT IVECO'S LOSSES TOPPED 20 BILLION PESETAS IN 1992 IN 1990 FIAT TOOK A 60 STAKE IN IVECO FORMERLY EMPRESA NACIONAL DE AUTOCAMIONES FOR 12 BILLION PESETAS IN CASH AND AN AGREEMENT TO PAY AN ADDITIONAL 12 BILLION PESETAS IN NEW CAPITAL IVECO REPORTED LOSSES OF NEARLY 20 BILLION PESETAS IN 1990 AND SAID AT THE TIME IT EXPECTED TO TURN ITS FIRST PROFIT IN 1995 9304050148 930405 FEDERAL PAPER BOARD SAYS FIRSTQUARTER NET WILL TRAIL EXPECTATIONS MONTVALE NJ FEDERAL PAPER BOARD CO SAID ITS FIRSTQUARTER NET INCOME WILL BE LOWER THAN EXPECTED BECAUSE OF TWO PLANT SHUTDOWNS AND WEAKER PULP PRICES THE MAKER OF PAPERBOARD AND OTHER PULP PRODUCTS ALSO SAID THAT MARKET PULP PRICES FOR THE QUARTER WILL BE LOWER THAN IN THE PREVIOUS QUARTER AND THAT ITS MARKET PULP OPERATIONS WILL BE UNPROFITABLE ALTHOUGH IT IS OPERATING AT FULL CAPACITY FEDERAL PAPER BOARD SAID THE BLEACHED BOARD MARKET SOFTENED DURING THE QUARTER AMID SOME PRICE DISCOUNTING PULP PRICES HOWEVER HAVE STABILIZED AND ARE EXPECTED TO RISE DURING APRIL IT ADDED THE COMPANY SAID IT EXPECTS TO REPORT NET INCOME OF 14 CENTS TO 16 CENTS A SHARE FULLY DILUTED FOR THE FIRST QUARTER ENDED MARCH 27 COMPARED WITH NET OF 168 MILLION OR 36 CENTS A SHARE FULLY DILUTED ON SALES OF 323 MILLION A YEAR EARLIER FIRSTQUARTER EARNINGS WERE HURT BY AN UNSCHEDULED PLANT SHUTDOWN AS WELL AS BY A SCHEDULED PLANT SHUTDOWN FOR MAINTENANCE THAT WAS LONGER THAN EXPECTED THE COMPANY SAID ITS AUGUSTA GA MILL ALSO RAN INTO HIGHER COSTS BECAUSE OF A NATURALGAS CURTAILMENT RELATED TO EAST COAST STORMS FEDERAL PAPER BOARD SAID IT WILL RAISE PRICES IN MIDAPRIL ON AN UNCOATED FREESHEET PRODUCT MADE AT A MILL IN SCOTLAND ITS RECYCLED PAPERBOARD AND LUMBER BUSINESSES REMAIN STRONG IT SAID ADDING THAT ITS PAPER CONVERTING OPERATIONS ARE STABLE THOUGH ONLY MARGINALLY PROFITABLE FEDERAL PAPER BOARD CLOSED FRIDAY AT 24625 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9304050147 930405 FORMER DREXEL TRADER SETTLES CASE ALLEGING STOCK MANIPULATION WASHINGTON A FORMER ASSISTANT EQUITIES TRADER FOR DREXEL BURNHAM LAMBERT INC AGREED TO SETTLE A STOCKMANIPULATION CASE THAT HAD BEEN PENDING FOR MORE THAN FOUR YEARS THE TRADER PAMELA MONZERT WAS AMONG THE DEFENDANTS NAMED IN THE ORIGINAL COMPLAINT FILED AGAINST DREXEL BY THE SECURITIES AND EXCHANGE COMMISSION IN SEPTEMBER 1988 BUT THE PORTION OF THE CASE AGAINST MS MONZERT WAS OVERSHADOWED BY THE PORTIONS DEALING WITH HER FORMER BOSS MICHAEL MILKEN HIS BROTHER LOWELL MILKEN AND FINANCIER VICTOR POSNER AMONG OTHERS IN THE SUIT FILED IN A NEW YORK FEDERAL COURT THE SEC ACCUSED MS MONZERT THEN AN EMPLOYEE IN DREXEL'S HIGHYIELD BOND TRADING DEPARTMENT OF HELPING MICHAEL MILKEN HEAD OF THE DEPARTMENT MANIPULATE THE STOCK PRICE OF STONE CONTAINER CORP IN 1986 AT MR MILKEN'S DIRECTION THE SEC ALLEGED MS MONZERT INSTRUCTED ARBITRAGER IVAN BOESKY TO PURCHASE STONE CONTAINER SHARES AS PART OF A SCHEME TO BOOST THE COMPANY'S STOCK PRICE ARTIFICIALLY THE SCHEME WAS DESIGNED TO PERMIT A PUBLIC OFFERING OF STONE CONTAINER SECURITIES UNDERWRITTEN BY DREXEL TO GO FORWARD THE SEC SAID WITHOUT ADMITTING WRONGDOING MS MONZERT CONSENTED TO BE BARRED FROM THE SECURITIES INDUSTRY FOR AT LEAST THREE YEARS AFTER WHICH SHE WILL HAVE THE RIGHT TO REAPPLY FOR ADMISSION 9304050146 930405 CREDIT SUISSE'S TAKEOVER OF VOLKSBANK MAY HERALD A RETURN OF THE MEGABANKS BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL ZURICH WHEN CREDIT SUISSE ANNOUNCED ITS 1 BILLION TAKEOVER OF SWISS VOLKSBANK EARLY THIS YEAR INVESTORS WERE SKEPTICAL THEY REACTED BY PUSHING DOWN THE STOCK PRICE OF CS HOLDING AG CREDIT SUISSE'S PARENT BANKERS PREDICTED THAT THE PURCHASE OF A COMPETITOR WEAKENED BY LOSSES ON BAD LOANS WOULD SADDLE CREDIT SUISSE WITH PROBLEMS FOR YEARS TO COME BUT AS THE TRANSACTION NEARS COMPLETION ANALYSTS ARE WARMING TO IT THE RISKS ARE HIGH PARTICULARLY IF A HOPEDFOR RECOVERY IN THE SWISS ECONOMY IS DELAYED BUT SO ARE THE POTENTIAL REWARDS BY PAVING THE WAY FOR SUBSTANTIAL COST SAVINGS THE PURCHASE IS LIKELY TO PROVE A FINANCIALLY ATTRACTIVE DEAL FOR CREDIT SUISSE SAYS BOB YATES AN ANALYST AT FOXPITT KELTON IN LONDON ADDS MARTIN JETZER CHIEF ECONOMIST AT GUYERZELLER BANK IN ZURICH THIS IS A VERY AGGRESSIVE AND COURAGEOUS MOVE IT IS ALSO A SIGNAL THAT THE IDEA OF THE MEGABANK NOW OUT OF FASHION IN INTERNATIONAL BANKING MAY BE MAKING A COMEBACK BY GOING FOR INCREASED MARKET SHARE IN SWITZERLAND CREDIT SUISSE IS TRYING TO BOLSTER ITS POSITION AT HOME AND ABROAD ITS STRATEGY FOR DOING SO FITS IN WITH A COUPLE OF IDEAS CURRENTLY IN VOGUE IT AIMS TO ACHIEVE ECONOMIES OF SCALE BY BRINGING TWO BANKS TOGETHER AND CUTTING OUT DUPLICATION YET IT RETAINS THE IDENTITY OF BOTH BANKS UNDER CS HOLDING SEEKING MAXIMUM COMMERCIAL AND OPERATIONAL FLEXIBILITY CS HOLDING WHICH IS OFFERING NEW SHARES IN EXCHANGE FOR SHARES IN SWISS VOLKSBANK ALREADY HAS RECEIVED FIRM ACCEPTANCES AMOUNTING TO 93 OF SWISS VOLKSBANK'S CAPITAL THE PURCHASE TO BE COMPLETED IN EARLY APRIL WILL PUSH CREDIT SUISSE FROM NO 3 IN SWISS RETAIL BANKING ONTO THE SAME LEVEL AS UNION BANK OF SWITZERLAND THE NATION'S BIGGEST BANK THOUGH IT IS STRONG INTERNATIONALLY PARTICULARLY IN CORPORATE BANKING AND ASSET MANAGEMENT CREDIT SUISSE UNTIL NOW HAD LACKED CRITICAL MASS IN ITS HOME MARKET THE ACQUISITION WILL PROVIDE THIS SAYS JOSEF ACKERMANN THE BANK'S RECENTLY APPOINTED CHIEF EXECUTIVE OFFICER BY EXPLOITING THE POTENTIAL SYNERGIES BETWEEN THE TWO BANKS HE CONTENDS WE ARE WELL PLACED TO BECOME ONE OF THE LOWCOST PRODUCERS IN THIS MARKET INDEED AS MR ACKERMANN SAYS IN AN INTERVIEW CREDIT SUISSE'S APPETITE FOR GROWTH IS LIKELY TO BE ONLY TEMPORARILY SATED BY ITS ACQUISITION OF SWISS VOLKSBANK IF THE MOVE PROVES SUCCESSFUL IT MAY PAVE THE WAY FOR AN ACQUISITION OF A BIG RETAIL BANK OUTSIDE SWITZERLAND MR ACKERMANN HINTS WE HAVE ALWAYS STATED THAT HAVING A STRONG SHARE OF OUR HOME MARKET IS A SINE QUA NON FOR GLOBAL SUCCESS HE SAYS THIS IS A BASIS FOR FUTURE GROWTH IN THE INTERNATIONAL FIELD AS WELL MR ACKERMANN NOTES THAT SWISS VOLKSBANK SWITZERLAND'S FOURTHLARGEST BANK HAS A LOYAL CUSTOMER BASE AMONG SMALL AND MEDIUMSIZE COMPANIES AND SMALL INVESTORS BY STRENGTHENING CREDIT SUISSE'S DEPOSIT BASE HE ARGUES THE ACQUISITION WILL AUGMENT THE BANK'S LENDING CAPACITY AND ITS ABILITY TO MAKE PROFITS THE ACQUISITION IS ALSO LIKELY TO STRENGTHEN CREDIT SUISSE INTERNATIONALLY HE ADDS BY BRINGING MORE BUSINESS FOR OTHER CS HOLDING UNITS NOTABLY INVESTMENT BANK CREDIT SUISSE FIRST BOSTON AND CS FINANCIAL PRODUCTS THE GROUP'S SPECIALIST DERIVATIVES SUBSIDIARY THERE ARE STILL HURDLES AHEAD SWISS VOLKSBANK ANNOUNCED A LOSS OF 72 MILLION SWISS FRANCS 476 MILLION FOR 1992 AFTER WRITEDOWNS ON BAD LOANS TOTALING 720 MILLION FRANCS SWITZERLAND'S WEAK ECONOMY PROMPTS ANALYSTS TO PREDICT A FURTHER DIFFICULT YEAR IN 1993 ANALYSTS ALSO QUESTION WHETHER CREDIT SUISSE WILL HANG ON TO SWISS VOLKSBANK CLIENTS PARTICULARLY IF IT CLOSES BRANCHES I'M VERY SKEPTICAL INDEED SAYS SARAH MANTON AN ANALYST AT ROBERT FLEMING SECURITIES IN LONDON FOR HIS PART MR ACKERMANN POINTS TO THE LOW PRICE CREDIT SUISSE PAID FOR SWISS VOLKSBANK COMPARED WITH ITS ESTIMATED NET WORTH OF 21 BILLION FRANCS 139 BILLION THAT HE SAYS LEAVES A SUBSTANTIAL CUSHION OF 500 MILLION FRANCS AVAILABLE TO OFFSET FUTURE LOSSES TO FORESTALL CUSTOMER DEFECTIONS HE SAYS CREDIT SUISSE PLANS TO LAUNCH A CAMPAIGN OFFERING CUSTOMERS OF EACH BANK A RANGE OF NEW PRODUCTS IT IS UP TO MR ACKERMANN TO MAKE THE ACQUISITION WORK HE WAS NAMED TO THE POST THIS YEAR AFTER HIS PREDECESSOR ROBERT JEKER LEFT THE BANK FOR A POSITION IN AN UNRELATED PRIVATELY HELD BUSINESS THE STOCKY 44YEAROLD BANKER BRINGS A LIVELY INTELLECT AND FOREIGN EXPERIENCE TO HIS POST AN ECONOMIST BY TRAINING MR ACKERMANN JOINED CREDIT SUISSE IN 1978 AFTER OBTAINING A DOCTORATE AT ST GALLEN UNIVERSITY JOBS IN VARIOUS DEPARTMENTS IN SWITZERLAND WERE INTERSPERSED WITH TOURS IN NEW YORK AND LONDON FOR THE PAST SIX YEARS HE RAN CREDIT SUISSE'S INVESTMENTBANKING RELATIONS WITH MULTINATIONAL COMPANIES THAT EXPERIENCE IS LIKELY TO BE PARTICULARLY RELEVANT AT CS HOLDING AS THE MULTINATIONAL BANKING GROUP EXPANDS IN THE YEARS TO COME AFTER THE 1980S AND EARLY 1990S WHEN A SERIES OF PROBLEMATIC MERGERS AND ACQUISITIONS IN DIFFERENT COUNTRIES GAVE THE MEGABANK IDEA A BAD NAME SIZE AND INTERNATIONAL REACH ARE CREEPING BACK INTO FASHION IN BANKING THIS MIRRORS TRENDS LONG APPARENT IN MANUFACTURING AND PARTLY REFLECTS AWARENESS OF HOW TECHNOLOGY CAN CONTRIBUTE TO COSTCUTTING AND COMMERCIAL INNOVATION BUT IT ALSO HAS TO DO WITH THE INCREASINGLY GLOBAL NATURE OF AN INDUSTRY IN WHICH SMALL PLAYERS THOUGH THEY MAY BE SUCCESSFUL IN LOCAL MARKETS FACE GROWING LIMITATIONS YOU CAN BE NICHEY AND SMALL AND SURVIVE SAYS MR YATES THE FOXPITT KELTON ANALYST BUT YOU CAN'T OFFER ACROSSTHEBOARD SERVICE AND BE SMALL AND SURVIVE IN AREAS SUCH AS FOREIGNEXCHANGE TRADING HE POINTS OUT HIGH VOLUME GIVES BIG BANKS A PRICING EDGE IN RECENT YEARS SOME OF THE WORLD'S MOST PROFITABLE BANKS HAVE DELIBERATELY AVOIDED COSTLY FOREIGN EXPANSION OR TROUBLESOME DOMESTIC MERGERS FOCUSING INSTEAD ON CORE DOMESTIC BUSINESSES BRITAIN'S LLOYDS BANK PLC AND SPAIN'S BANCO POPULAR ESPANOL HAVE INCREASED EARNINGS THAT WAY BANKS THAT HAVE EMBARKED ON AGGRESSIVE MERGERS AND ACQUISITIONS BY CONTRAST HAVE FREQUENTLY RUN INTO PROBLEMS BRITAIN'S LARGEST BANK BARCLAYS PLC RECENTLY ANNOUNCED A LOSS FOR 1992 ITS FIRST MAINLY BECAUSE OF BAD LOANS IN BRITAIN BUT ALSO BECAUSE OF LOSSES AT A RECENTLY ACQUIRED FRENCH SUBSIDIARY AND YET THE PRESSURE TO GROW PERSISTS EVEN FOR BANKS THAT HAVE SUCCEEDED BY STAYING SMALL IN THE LONG RUN SAYS HUGH PYE OF ROBERT FLEMING SECURITIES ANY SUCCESSFUL BUSINESS FACES THE SAME PROBLEM IF YOU'RE VERY SUCCESSFUL AND A NET RETAINER OF CASH YOUR RETURN ON CAPITAL GOES DOWN SO THERE IS PRESSURE ON YOU TO DEPLOY THE CAPITAL IN A MORE PROFITABLE WAY 9304050145 930405 GM UNIT SELLS DIVISION WARREN OHIO GENERAL MOTORS CORP SAID ITS HUGHES INTERCONNECT SYSTEMS DIVISION OF HUGHES AIRCRAFT CO HAS BEEN SOLD TO GM'S PACKARD ELECTRIC DIVISION TERMS WEREN'T DISCLOSED INTERCONNECT SYSTEMS DIVISION IS A SUPPLIER OF ELECTRICAL AND FIBER OPTIC CONNECTORS FLEXIBLE PRINTED CIRCUITS AND ROUND WIRE HARNESS ASSEMBLIES TO COMMERCIAL AND MILITARY MARKETS INTERCONNECT SYSTEMS WILL BE RENAMED PACKARD/HUGHES INTERCONNECT SYSTEMS 9304050144 930405 INTERNATIONAL JAPAN PROPOSAL TO CUT TAXES IS PUT ON HOLD BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AFTER MUCH TALK OF A BIG INCOMETAX CUT JAPAN'S ECONOMIC LEADERS APPARENTLY NOW BELIEVE THEY CAN MOTHBALL THAT WEAPON IN THEIR FIGHT TO STIMULATE THE ECONOMY BUT GOVERNMENT OFFICIALS ALREADY ARE TALKING ABOUT SLASHING TAXES IN THE FALL IF THE ECONOMY DOESN'T RECOVER BY THEN ONLY WEEKS AGO POLITICIANS IN JAPAN'S RULING LIBERAL DEMOCRATIC PARTY WERE URGING TRILLIONS OF YEN IN INCOMETAX CUTS AS A WAY TO JUMPSTART THE ECONOMY THE CUTS WERE TO BE A CENTRAL PART OF THE STIMULUS PACKAGE PRIME MINISTER KIICHI MIYAZAWA IS EXPECTED TO ANNOUNCE NEXT WEEK THE TAX MEASURE WAS ALSO MEANT TO PLEASE US OFFICIALS WHO WANT JAPAN'S CONSUMERS TO HAVE MORE MONEY IN THEIR POCKETS SO THEY CAN BUY MORE US PRODUCTS AND THEREBY PUSH DOWN JAPAN'S HUGE TRADE SURPLUS FINAL CONTENTS OF THE STIMULUS PACKAGE AREN'T KNOWN BUT IN THE PAST FEW DAYS THE LDP'S TAX CUTTERS HAVE FALLEN MYSTERIOUSLY SILENT LDP LEADERS SAY THEY'VE DECIDED TO PRACTICE FORBEARANCE FOR NOW BUT THEN IF NECESSARY IMPLEMENT A HUGE INCOMETAX CUT PERHAPS AS MUCH AS SIX TRILLION YEN 5249 BILLION THIS FALL THE PROPOSAL FOR A LARGE INCOMETAX CUT APPEARS TO HAVE BEEN PUT ON ICE IN PART BECAUSE THE ECONOMY IS SHOWING TENTATIVE SIGNS OF RECOVERY PROMPTING SOME TO CONCLUDE INCOMETAX CUTS AREN'T URGENT OTHER OPPONENTS OF THE IDEA ARGUE THAT JAPAN'S SHAKEN CONSUMERS ARE MORE LIKELY TO SAVE THE ADDITIONAL INCOME THAN SPEND IT BUT THE REAL REASON FOR HOLDING OFF MAY HAVE MORE TO DO WITH POLITICS THAN ECONOMICS PARTY LEADERS NEED SOMETHING TO DANGLE IN FRONT OF THE PUBLIC BEFORE ELECTION TIME SAYS SHIGENORI OKAZAKI A POLITICAL ANALYST AT SBCI SECURITIES ASIA LTD MR MIYAZAWA IS EXPECTED TO CALL ELECTIONS IN THE FALL MEANWHILE THE GOVERNMENT IS SCRAMBLING TO ASSEMBLE A PACKAGE OF MEASURES TO BOOST THE ECONOMY AND IMPRESS JAPAN'S TRADE PARTNERS WITHOUT BROAD INCOMETAX CUTS LAST WEEK MR MIYAZAWA SAID THE STIMULUS PACKAGE WILL BE LARGER THAN 107 TRILLION YEN THE PLAN IS EXPECTED TO CALL FOR GOVERNMENT SPENDING ON NONTRADITIONAL ITEMS INCLUDING MEDICAL EQUIPMENT COMPUTERS AND A TELECOMMUNICATIONS NETWORK INVESTMENT TERMED NEW SOCIAL CAPITAL FINANCE MINISTRY OFFICIALS WHO USUALLY DECRY USING PUBLIC MONEY FOR SHORTTERM CONSUMPTION HAVE EMBRACED SUCH PROPSALS AS AN ALTERNATIVE TO AN INCOMETAX CUT WHICH THEY VIEW AS A MUCH GREATER EVIL 9304050143 930405 CONSOLIDATED NATURAL GAS DEBT PITTSBURGH CONSOLIDATED NATURAL GAS CO SAID IT WILL REDEEM 50 MILLION OF ITS SENIOR DEBENTURES THE REDEMPTION DATE IS MAY 14 THE NATURAL GAS PRODUCER AND DISTRIBUTOR SAID IT WILL REDEEM 20 MILLION PRINCIPAL AMOUNT OF ITS 86 SENIOR DEBENTURES DUE MARCH 1 1999 AT 1018 PER 1000 PRINCIPAL AMOUNT 1875 MILLION PRINCIPAL AMOUNT OF ITS 925 SENIOR DEBENTURES DUE JULY 1 1995 AT 100980 PER 1000 PRINCIPAL AMOUNT AND 112 MILLION PRINCIPAL AMOUNT OF ITS 9 SENIOR DEBENTURES DUE JULY 1 1995 AT 100840 PER 1000 PRINCIPAL AMOUNT 9304050142 930405 EUROPEAN AIRPASSENGER TRAFFIC BRUSSELS EUROPE'S BIGGEST AIRLINES BOOSTED PASSENGER TRAFFIC 5 IN FEBRUARY COMPARED WITH 1992 THE 23MEMBER ASSOCIATION OF EUROPEAN AIRLINES SAID REAL GROWTH COULD BE BETWEEN 8 AND 9 SINCE 1992 TRAFFIC WAS BOOSTED BY THE EXTRA LEAPYEAR DAY IN FEBRUARY THE ASSOCIATION ADDED A FLURRY OF PROMOTIONAL FARES HELPED BOOST EUROPEAN TRAFFIC 77 HOWEVER AIRCRAFT WERE ONLY 50 FULL AT A CUSTOMARILY SLACK TIME FOR AIRLINES KEY NORTH ATLANTIC TRAFFIC LAGGED BEHIND WITH YEARTOYEAR GROWTH OF 1 AFRICAN ROUTE TRAFFIC EASED 03 9304050141 930405 FINANCING BUSINESS AMERICAN RESIDENTIAL HOLDING CORP AMERICAN RESIDENTIAL HOLDING CORP LA JOLLA CALIF SOLD 25 MILLION NEW AND EXISTING SHARES OF COMMON STOCK AT 20 A SHARE OR A TOTAL OF 50 MILLION THE MORTGAGE BANKING COMPANY SAID IT WILL USE 80 OF THE OFFERING PROCEEDS TO INCREASE ORIGINATION CAPACITY TO ACQUIRE SERVICING CONTRACTS AND FOR GENERAL CORPORATE PURPOSES THE REMAINING PROCEEDS WILL GO TO SELLING SHAREHOLDERS UNDERWRITERS WERE SALOMON BROTHERS INC ALEX BROWN & SONS AND MORGAN STANLEY & CO 9304050140 930405 THE FAST TRACK TO FISCAL STIMULUS BY DICK ARMEY AS THE BUDGET WORKS ITS WAY THROUGH CONGRESS PRESIDENT CLINTON CONTINUES TO CALL FOR AN INVESTMENTLED RECOVERY TO CREATE JOBS CUTTING THE CAPITALGAINS TAX AND INDEXING GAINS FOR INFLATION ARE THE FASTEST ROUTE TO THAT GOAL THE PRESIDENT HAS ACTUALLY ASKED CONGRESS FOR A LIMITED CAPITALGAINS TAX REDUCTION HIS PLAN FOCUSES ON LONGTERM INVESTMENT AND ONLY FOR SMALLER STARTUP BUSINESSES BUT NEW EVIDENCE REINFORCES WHAT MANY AMERICANS ALREADY KNOW ONLY AN ACROSSTHEBOARD CAPITALGAINS CUT WOULD PROVIDE THE DRAMATIC EMPLOYMENT AND ECONOMIC GROWTH MR CLINTON CRAVES THE LAST TIME THIS FIGHT WAS FOUGHT IN 1989 SENATE MAJORITY LEADER GEORGE MITCHELL DEFEATED THE PLAN WITH THE CHARGE THAT REDUCING THE CAPITALGAINS TAX RATE TO 15 WOULD BE A GIVEAWAY TO THE RICH BUT NEW TAXRETURN DATA FROM THE INTERNAL REVENUE SERVICE FOR 1991 SHOW HOW WRONG HE WAS THE 1991 FIGURES CONFIRM CLEARLY THAT A TREND HAS BUILT SINCE 1986 WHEN THE CAPITALGAINS RATE WAS RAISED TO 28 FROM 20 CONGRESS ASSUMED THAT A RATE CHANGE WOULD HAVE LITTLE INFLUENCE ON AMERICANS' WILLINGNESS TO TAKE CAPITAL GAINS IT WANTED TO HARVEST THE WEALTH OF THE 1980S BOOM BUT THE TAX REFORM ACT'S AUTHORS WERE SUFFERING FROM A BAD CASE OF STATIC ANALYSIS THE CHART SHOWS THAT THE IMPACT OF THE HIGHER RATE WAS THE OPPOSITE OF THEIR INTENTIONS EVER SINCE THE 1986 RATE INCREASE AMERICANS HAVE SUCCESSFULLY AVOIDED THE TAX BY SIMPLY HOLDING ON TO THEIR STOCK HOLDINGS AND OTHER ASSETS AND NOT REALIZING CAPITAL GAINS FOR THE GOVERNMENT TO TAX FROM 1988 THROUGH 1991 INFLATIONADJUSTED TAXABLE CAPITAL GAINS PLUMMETED REMAINING BELOW THE 1985 LEVEL EVERY SINGLE YEAR IN FACT INFLATIONADJUSTED TAXABLE CAPITAL GAINS IN 1991 WERE HALF WHAT THEY WERE IN 1985 AND LOWER THAN THEY HAVE BEEN IN ANY YEAR SINCE 1978 THE DROPOFF HAS BEEN SO DRAMATIC THAT IN 1991 THE FEDERAL GOVERNMENT TOOK IN 21 LESS REVENUE AT THE 28 RATE THAN IT DID IN 1985 AT THE 20 RATE THE 1991 NUMBER IS SHOCKING EVEN ALLOWING FOR A RECESSION BUT IT IS WHAT MANY PROPONENTS OF A CAPITALGAINS RATE CUT MYSELF INCLUDED REPEATEDLY PREDICTED WOULD HAPPEN HIGHER RATES HAVE LED TO LOWER TAX REVENUES A SOONTOBERELEASED STUDY BY THE REPUBLICAN MEMBERS OF THE JOINT ECONOMIC COMMITTEE YIELDS THIS INTERESTING SCENARIO HAD THE CAPITALGAINS RATE REMAINED AT 20 AND HAD TAXABLE CAPITAL GAINS CONTINUED THEIR 12 RATE OF GROWTH FROM 1980 TO 1985 THE GOVERNMENT WOULD HAVE NETTED 60 BILLION MORE IN CAPITALGAINS REVENUES IN THE YEARS 198691 A CONFESSION WE WERE NOT GENIUSES IN MAKING THIS PREDICTION JUST GOOD STUDENTS OF HISTORY INVARIABLY SINCE THE LATE 1960S EVERY TIME CAPITALGAINS TAX RATES HAVE RISEN CAPITAL GAINS REALIZATIONS HAVE FALLEN EVERY TIME THE RATES HAVE BEEN CUT REALIZATIONS HAVE ACCELERATED BECAUSE OF AN UNLOCKING EFFECT WHAT IS IMPORTANT IS THAT THE NUMBERS SHOW HOW WRONG SOME OF THE SAME PEOPLE WORKING ON THE CLINTON BUDGET AND PREDICTING HIGHER REVENUES FROM HIGHER TAX RATES TURNED OUT TO BE LAST TIME LET'S LOOK AT PREDICTIONS MADE IN THE LATE 1980S BY THE DEMOCRATCONTROLLED CONGRESSIONAL BUDGET OFFICE CBO AND THE JOINT COMMITTEE ON TAXATION JCT THROUGHOUT THE BUSH YEARS THESE INHOUSE NUMBERCRUNCHERS WERE UNWAVERING ALLIES OF GEORGE MITCHELL'S COALITION THE JCT ARGUED IN A HIGHLY PUBLICIZED 1989 STUDY THAT 60 OF THE BENEFITS OF A CAPITALGAINS TAX CUT WOULD ACCRUE TO AMERICANS MAKING MORE THAN 200000 A YEAR THIS MANTRA OF A TAX CUT FOR THE RICH WAS PREDICATED ON FORECASTS THAT TAXABLE CAPITAL GAINS WOULD ACCELERATE EVEN AFTER RATES WERE RAISED THESE PREDICTIONS WERE SPECTACULARLY WRONG IN JANUARY 1990 THE CBO ESTIMATED THAT TAXABLE CAPITAL GAINS WOULD BE 269 BILLION IN 1991 IN 1987 JCT PROJECTED THAT THEY WOULD BE 285 BILLION IN 1991 IN REALITY TAXABLE CAPITAL GAINS TOTALED 108 BILLION BOTH AGENCIES WERE WRONG BY MORE THAN 150 BILLION OR ABOUT A 150 FORECASTING ERROR IT WOULD SEEM THAT THE CBO AND JCT HAVE BEEN USING A CRACKED CRYSTAL BALL THIS MASSIVE FORECASTING ERROR ALSO EXPLAINS WHY THE DEMOCRATS BELIEVED THAT THE BUSH ADMINISTRATION'S CAPITALGAINS TAX RATE REDUCTION PLAN WOULD BE A MASSIVE TAX CUT FOR THE AFFLUENT IN EFFECT THE JCT AND CBO WERE PREDICTING THAT BY CUTTING THE TAX RATE THE RICH WOULD ESCAPE PAYING TAXES ON TENS OF BILLIONS OF DOLLARS OF CAPITAL GAINS THAT HAVE NEVER MATERIALIZED CBO AND JCT PREDICTED THAT AT THE HIGHER RATE OF 28 AMERICANS IN 1991 WOULD PAY SOME 30 BILLION MORE IN TAXES FROM CAPITAL GAINS THAN IN FACT THEY DID THEIR THREEYEAR REVENUE ERROR FROM 198991 WAS NEARLY 100 BILLION THERE IS GOOD NEWS IN THESE DATA FOR BILL CLINTON THEY PROVIDE THE WHITE HOUSE AN OPPORTUNITY TO ENACT A GENUINE INVESTMENTLED ECONOMIC STIMULUS IN 1993 AND TO MAKE THE RICH PAY MORE TAXES AT THE SAME TIME CHOPPING THE CAPITALGAINS RATE AND INDEXING GAINS FOR INFLATION FOR ALL TYPES OF INVESTMENTS SMALL BUSINESSES STOCKS FARMS REAL ESTATE AND SO FORTH WOULD UNLEASH A WAVE OF STOCK TRADING AND ASSET SALES THUS RELEASING BILLIONS OF DOLLARS OF LOCKEDUP CAPITAL THESE FREED UP FUNDS COULD BE USED TO FINANCE THE VERY KINDS OF NEW STARTUP BUSINESSES THAT CREATE JOBS AND ECONOMIC GROWTH ADDITIONAL DATA BUTTRESS MY ARGUMENT A REPORT BY THE TEXASBASED INSTITUTE FOR POLICY INNOVATION RELEASED IN FEBRUARY CALCULATES THAT INDEXING CAPITAL GAINS TO INFLATION WOULD ADD 511 BILLION TO GROSS DOMESTIC PRODUCT BY 1997 CREATE 550000 JOBS AND RAISE 111 BILLION IN CAPITALGAINS AND OTHER FEDERAL TAX REVENUES AS A RESULT OF THE ENHANCED ECONOMIC GROWTH THE RISK OF ANY SIGNIFICANT REVENUE LOSS TO THE FEDERAL GOVERNMENT IS SMALL IF ONLY BECAUSE THE CAPITALGAINS TAX TODAY RAISES A MINUSCULE AMOUNT OF REVENUELESS THAN 30 BILLION A YEAR EVEN USING THE CBO'S DISCREDITED STATIC REVENUE ESTIMATES A RATE CUT TO 15 FROM 28 WOULD AT THE VERY WORST LOSE 15 BILLION FOR THE TREASURY THIS IS LESS THAN THE SPENDING STIMULUS THAT PRESIDENT CLINTON HAS PROPOSED FOR 1993 SURELY A CAPITALGAINS RATE CUT WOULD STIMULATE INVESTMENT AND ECONOMIC ACTIVITY IN MORE USEFUL AREAS THAN MAKEWORK SUMMER JOBS PROGRAMS AND MORE HANDOUTS TO BIGCITY MAYORS THE DEBATE THAT RAGED FOUR YEARS AGO ON THE IMPACT OF RAISING THE CAPITALGAINS TAX RATE IN 1986 HAS BEEN RESOLVED BY ACTUAL EVENTS TAXABLE CAPITAL GAINS WERE CUT IN HALF AND TAX REVENUES FELL THE RICH DID NOT PAY MORE CAPITALGAINS TAXES THEY PAID LESS FAR LESS IN FACT NOW THAT THE EVIDENCE IS IN MR PRESIDENT AND MR MITCHELL CAN WE PLEASE END THE GRIDLOCK AND ENACT A PROGROWTH CAPITALGAINS TAX CUT REP ARMEY R TEXAS IS AN ECONOMIST AND THE CHAIRMAN OF THE HOUSE REPUBLICAN CONFERENCE 9304050139 930405 MARKETING & MEDIA TIME HITS BACK AT DISNEY IN SPAT OVER THEME PARKS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC COUNTERPUNCHED WALT DISNEY CO AS THE TWO ENTERTAINMENT INDUSTRY COMPANIES CONTINUED TO TUSSLE OVER THEME PARK ADVERTISING THAT DISNEY HAS CALLED OFFENSIVE TIME'S PUBLISHING UNIT ABRUPTLY CANCELED A SCHEDULED NATIONAL SALES MEETING AT WALT DISNEY WORLD AFTER DISNEY'S CHAIRMAN MICHAEL EISNER TOOK PUBLIC SWIPES AT AN ADVERTISING CAMPAIGN FOR TIME WARNER'S SIX FLAGS THEME PARKS FROM APRIL 18 TO 22 ABOUT 400 TIME INC SALES AND MARKETING STAFFERS WERE TO HAVE CONVERGED ON DISNEY'S YACHT CLUB RESORT AND BEACH CLUB RESORT HOTELS AT DISNEY'S SPRAWLING COMPLEX OUTSIDE ORLANDO FLA BUT THE MEETING WAS CALLED OFF FRIDAY IN A REPORT IN THAT DAY'S WALL STREET JOURNAL MR EISNER CALLED THE SIX FLAGS CAMPAIGN REASONABLY DESPICABLE AND CRITICIZED TIME WARNER'S CORPORATE DIRECTION UNDER ITS NEW CHAIRMAN GERALD LEVIN MR EISNER SAID HE HAD PULLED DISNEY PARK ADVERTISING FROM ALL TIME INC MAGAZINES WHICH INCLUDE TIME AND PEOPLE THE THEME OF THE SIX FLAGS CAMPAIGN IS THAT MANY OF ITS PARKS ARE BIGGER AND CLOSER THAN DISNEYLAND AND LESS EXPENSIVE FOR FAMILIES TO REACH ONE TV AD FEATURED A FAMILY DOG LANGUISHING IN A KENNEL CAGE TEMPORARILY DESERTED AS ITS OWNERS FROLICKED AT A FAROFF DISNEY PARK IN A MEMO TO TIME INC'S STAFF REGINALD K BRACK JR AND DON LOGAN TIME'S CHAIRMAN AND PRESIDENT RESPECTIVELY TOOK NOTE OF MR EISNER'S REMARKS THEN CONTINUED WE BELIEVE THAT IN THE CURRENT ENVIRONMENT IT WOULD NOT BE POSSIBLE TO HOLD A PRODUCTIVE MEETING AT THIS SITE AND HAVE ACCORDINGLY CANCELED THE CONFERENCE TIME INC EXECUTIVES DECLINED TO DISCUSS THE SITUATION BUT PRIVATELY SAID THAT MR LEVIN DIDN'T MAKE THE DECISION TO SCUTTLE THE MEETING INSTEAD THEY SAID THE DECISION WAS MADE BY MESSRS BRACK AND LOGAN WHO THEN INFORMED MR LEVIN WHO WAS TO BE A FEATURED SPEAKER AT THE MEETING A DISNEY SPOKESMAN SAID WE ARE DISAPPOINTED FOR THE MANY TIME WARNER FAMILIES WHO WILL NOT BE ABLE TO ENJOY THE ATTRACTIONS OF THE WORLD'S GREATEST RESORT WHILE THE TIME INC MEETING WAS TO BE FOR COMPANY STAFF ONLY MANY STAFFERS SAID THEY HAD PLANNED FAMILY VACATIONS AROUND THE MEETING IN THE MEMO MESSRS BRACK AND LOGAN ACKNOWLEDGED THE INCONVENIENCE OF CANCELING THE MEETING ON SHORT NOTICE BUT ADDED WE TRUST THAT YOU UNDERSTAND THE REASONS FOR IT RICHARD TURNER CONTRIBUTED TO THIS ARTICLE 9304050138 930405 FEDERAL AGENCY RAISES SLIGHTLY FUEL ECONOMY FOR 1995 LIGHT TRUCKS WASHINGTON THE FEDERAL GOVERNMENT RATCHETED UP SLIGHTLY THE FUELECONOMY STANDARD FOR 1995MODEL PICKUPS VANS AND OTHER LIGHT TRUCKS THE NATIONAL HIGHWAY TRANSPORTATION SAFETY ADMINISTRATION SET THE CORPORATE AVERAGE FUEL ECONOMY OR CAFE STANDARD FOR LIGHT TRUCKS AT 206 MILES PER GALLON UP FROM 204 MPG FOR 1993 MODELS AND 205 MPG FOR 1994 MODELS LIGHT TRUCKS HAVE A GROSS VEHICLE WEIGHT RATING OF LESS THAN 8500 POUNDS THE AGENCY SAID IT WON'T ISSUE STANDARDS FOR 1996 AND 1997 MODELS UNTIL IT FINISHES STUDYING THE ROLE OF CAFE STANDARDS IN ENERGYCONSERVATION EFFORTS IN DECEMBER IT PROPOSED SETTING THEM WITHIN A RANGE OF 205 TO 215 MPG 9304050137 930405 FIRST FIDELITY BANCORP LAWRENCEVILLE NJ FIRST FIDELITY BANCORP SAID THE FEDERAL RESERVE BOARD APPROVED ITS APPLICATION TO ACQUIRE NORTHEAST BANCORP INC OF STAMFORD CONN AND ITS PRINCIPAL SUBSIDIARY UNION TRUST CO THE PREVIOUSLY ANNOUNCED TRANSACTION AN EXCHANGE OF STOCK VALUED AT ABOUT 29 MILLION STILL NEEDS THE APPROVAL OF NORTHEAST SHAREHOLDERS WHO ARE SCHEDULED TO MEET APRIL 22 THE TRANSACTION ALSO IS SUBJECT TO APPROVAL BY THE CONNECTICUT BANKING COMMISSIONER UNION TRUST IS OPERATING UNDER CEASEANDDESIST ORDERS ISSUED BY THE CONNECTICUT COMMISSIONER AND THE FEDERAL DEPOSIT INSURANCE CORP THE ORDERS PUT THE BANK UNDER GREATER SUPERVISION BECAUSE OF A WEAK FINANCIAL CONDITION RELATED TO THE POOR ECONOMY IN CONNECTICUT 9304050136 930405 MAJOR STEEL ALUMINUM MILLS TO SHOW LOSSES LOW PRICES IN FIRST QUARTER HURT OPERATING RESULTS DESPITE STRONG DEMAND BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LOW PRICES PUT MOST MAJOR STEEL AND ALUMINUM PRODUCERS IN THE RED FOR THE FIRST QUARTER DESPITE HEALTHY DEMAND SHIPMENTS IN THE US STEEL MARKET WERE UP ALMOST 4 FROM THE YEAREARLIER QUARTER AND ABOUT 5 FROM THE FOURTH QUARTER BECAUSE OF RISING DEMAND IN THE AUTOMOTIVE AND CONSUMERDURABLE MARKETS AND AMONG SMALL CUSTOMERS BUT PRICES ROSE ONL AND 2 FROM A YEAR EARLIER AS A RESULT STEELMAKERS PROBABLY CUT THEIR LOSSES FROM THE FOURTH QUARTER AND YEAREARLIER PERIOD BUT MOST DIDN'T YET BREAK EVEN THE SIX MAJOR PRODUCERS WILL HAVE AN AVERAGE OPERATING LOSS OF 10 TO 15 A TON SAID CHRISTOPHER PLUMMER A CONSULTANT WITH RESOURCE STRATEGIES INC THAT'S BETTER THAN THE YEAREARLIER 17 LOSS AND THE FOURTHQUARTER 38 LOSS BECAUSE OF ACCOUNTING CHANGES FOR RETIREE HEALTH BENEFITS WHICH MOST STEELMAKERS APPLIED RETROACTIVELY TO THE 1992 FIRST QUARTER THE NET INCOME COMPARISONS WILL BE MEANINGLESS THE NEW STANDARDS ALSO WILL DRAG DOWN OPERATING RESULTS BY AN ADDITIONAL 10 TO 20 A TON LEADING THE PACK AMONG PRODUCERS IS USX CORP'S US STEEL WHICH COULD BREAK EVEN OR SEE A SMALL PROFIT THANKS TO RELATIVELY LOW COSTS AND A 17 MILLION GAIN FROM THE SALE OF AN INVESTMENT NEWLY PUBLIC NATIONAL STEEL CORP HAS FORECAST A LOSS BUT IT WILL PROBABLY BE MODERATE THE QUARTER WILL ALSO PROVIDE A TEST OF WHETHER ARMCO STEEL CO A LAGGARD HAS IMPROVED BECAUSE OF CHIEF EXECUTIVE THOMAS GRAHAM'S COSTCUTTING MEASURES ARMCO STEEL'S 50OWNER ARMCO INC IS EXPECTED TO HAVE A FIRSTQUARTER LOSS OF 19 CENTS A SHARE NARROWER THAN LAST YEAR'S 37 CENTS ACCORDING TO FIRST CALL CORP'S CONSENSUS OF ANALYSTS' FORECASTS ANALYSTS EXPECT BETHLEHEM STEEL CORP TO NARROW ITS LOSS TO 40 CENTS A SHARE FROM 66 CENTS WHILE INLAND STEEL INDUSTRIES INC WHICH HAD A LOSS OF 108 A SHARE IN THE YEAREARLIER QUARTER BEFORE RESTATEMENTS THE LOSSES PER SHARE WERE 27 CENTS FOR US STEEL AND 114 FOR INLAND WITH A RECENT SURGE IN ORDERS PROBABLY LEADING TO A 5 OR BETTER RISE IN SHIPMENTS THIS YEAR AND PRICE INCREASES IN PLACE FOR THE SECOND AND THIRD QUARTERS MOST MAJOR PRODUCERS SHOULD BE PROFITABLE BY THE THIRD QUARTER SOME SUCH AS US STEEL AND NATIONAL COULD ALSO POST PROFITS IN THE SECOND QUARTER SPECIALTY STEELMAKERS AND MINIMLLS REMAINED PROFITABLE IN THE FIRST QUARTER STAINLESS STEELMAKER ALLEGHENY LUDLUM CORP SHOULD SEE PERSHARE PROFITS RISE TO 43 CENTS FROM 40 CENTS IT BENEFITED FROM LOW PRICES FOR NICKEL A RAW MATERIAL AND ITS PRESENCE IN HIGHTECH MARKETS MOST MINIMILLS MEANWHILE WERE ABLE TO MAINTAIN PROFITSPERTON IN THE 10TO30 RANGE AS HIGHER SHIPMENTS OFFSET CLIMBING SCRAP PRICES PERSHARE NET AT NUCOR CORP THE LEADING MINIMILL IS EXPECTED TO JUMP TO 59 CENTS FROM 38 CENTS THERE IS NO SUCH GOOD NEWS FOR ALUMINUM PRODUCERS UNLIKE STEELMAKERS THEY HAVE HEFTY INVENTORIES AND NO PROTECTION FROM IMPORTS AS A RESULT FOUR OF THE CONTINENT'S FIVE MAJOR PRODUCERS WILL HAVE FIRSTQUARTER LOSSES ADDED PETER ANKER ANALYST WITH NATWEST SECURITIES SOME OF THESE GUYS WILL LOSE MONEY ALL YEAR ANALYSTS EXPECT ALCAN ALUMINIUM LTD AND AMAX INC TO HAVE LOSSES PER SHARE OF 9 CENTS AND 35 CENTS RESPECTIVELY WHILE REYNOLDS METALS CO AND KAISER ALUMINUM CORP SHOULD EACH HAVE 24CENT LOSSES ALUMINUM CO OF AMERICA PROPPED UP BY ITS AUSTRALIAN ALUMINA BUSINESS SHOULD REMAIN IN THE BLACK BUT SEE PROFITS FALL TO 46 CENTS A SHARE FROM 89 CENTS MR ANKER SAID ALCOA'S PROFIT COULD BE AS LOW AS 30 CENTS AND REYNOLDS LOSS COULD BE AS LARGE AS 35 CENTS IN THE 1992 FIRST QUARTER PERSHARE PROFITS WERE 89 CENTS FOR ALCOA 22 CENTS FOR REYNOLDS AND 15 CENTS FOR KAISER WHILE PERSHARE LOSSES WERE 8 CENTS FOR ALCAN AND 38 CENTS FOR AMAX SHIPMENTS IN THE LATEST QUARTER WERE STRONG ROUGHLY EVEN WITH YEAREARLIER AND FOURTHQUARTER LEVELS DESPITE WEAKNESS IN THE AEROSPACE MARKET PRICES HOWEVER REMAIN NEAR RECORD LOWS AFTER ADJUSTMENT FOR INFLATION BECAUSE OF OVERPRODUCTION AND HIGHER SHIPMENTS FROM RUSSIA AND EASTERN EUROPE AND WITH PRICES DETERIORATING EVEN FOR CAN SHEET AND OTHER FABRICATED GOODS ANALYSTS BELIEVE SECONDQUARTER DIVIDENDS ARE AT RISK AT COMPANIES SUCH AS REYNOLDS 9304050135 930405 AIRBUS INDUSTRIE GETS ORDERS FOR 14 JETLINERS NEGOTIATING FOR OTHERS SPECIAL TO THE WALL STREET JOURNAL PARIS AIRBUS INDUSTRIE CONFIRMED THAT IT HAS RECEIVED TWO CHINESE ORDERS FOR A TOTAL OF 12 OF ITS WIDEBODIED A310 COMMERCIAL JETS AND ANNOUNCED A NEW ORDER FOR TWO A310S FROM SINGAPORE AIRLINES THE EUROPEAN AIRCRAFT CONSORTIUM DISCLOSED THAT IT IS ALSO NEGOTIATING WITH A THIRD CHINESE AIRLINE CHINA SOUTHERN FOR THE SALE OF SIX OF AIRBUS'S NEW A340 LONGHAUL AIRCRAFT TERMS OF THE CHINESE CONTRACT WEREN'T DISCLOSED BUT THE STICKER PRICE OF AN A310 IS AROUND 80 MILLION AIRBUS INDUSTRIE SAID CHINA NORTHERN AIRLINES OF SHENYANG AND CHINA NORTHWEST AIRLINES OF XIAN EACH HAVE ORDERED SIX A300600R JETS BOTH AIRLINES ARE FIRSTTIME CUSTOMERS CHINA NORTHERN'S AIRCRAFT WILL BE POWERED BY JET ENGINES MADE BY PRATT & WHITNEY A UNIT OF UNITED TECHNOLOGIES INC OF THE US CHINA NORTHWEST'S AIRCRAFT WILL BE POWERED BY ENGINES MADE BY GENERAL ELECTRIC CO OF THE US CHINA NORTHWEST IS ALREADY OPERATING TWO LEASED A310S AND TWO A300600RS SINGAPORE AIRLINES IS ONE OF AIRBUS'S BIG CUSTOMERS IN SOUTHEAST ASIA IT HAS BOUGHT 21 A310S AND EIGHT A300S AND HAS PLACED ORDERS FOR SEVEN A340S THE CHINESE ORDERS WERE ANNOUNCED BY GUENTER REXRODT GERMANY'S ECONOMICS MINISTER WHILE ON AN OFFICIAL VISIT TO CHINA THE ORDERS ANNOUNCED FRIDAY ARE A SHOT IN THE ARM FOR AIRBUS WHICH HAS BEEN AFFECTED LIKE OTHER AIRPLANE MANUFACTURERS BY THE SLUMP IN THE CIVIL AVIATION INDUSTRY 9304050134 930405 ABREAST OF THE MARKET HOPE FOR STOCK RALLY IS STILL SHINING DESPITE MARKET'S 6863POINT PLUNGE BY DOUGLAS R SEASE STAFF REPORTER OF THE WALL STREET JOURNAL DON'T PANIC DESPITE FRIDAY'S 6863POINT PLUNGE IN THE DOW JONES INDUSTRIAL AVERAGE COURTESY OF PHILIP MORRIS'S ANNOUNCEMENT THAT IT WILL CUT CIGARETTE PRICES SEVERAL ANALYSTS ARE FINDING REASONS TO REMAIN CONFIDENT THAT NOT ONLY WILL STOCK PRICES STABILIZE BUT THAT THEY STAND A BETTERTHANEVEN CHANCE OF CLIMBING 5 OR MORE IN COMING WEEKS THERE ARE SEVERAL THINGS GOING ON THAT IF THEY GO IN THE RIGHT DIRECTION COULD TRIGGER A RALLY SAYS BYRON WIEN CHIEF DOMESTIC MARKET STRATEGIST AT MORGAN STANLEY THEY WON'T ALL GO THE RIGHT WAY BUT I THINK THERE'S A 6040 CHANCE THAT ENOUGH OF THEM WILL TO GET US SUBSTANTIALLY HIGHER TOPPING MR WIEN'S LIST OF POSSIBLE RALLY TRIGGERS IS HIS EXPECTATION THAT THE NATION'S ECONOMY WILL SHOW MORE STRENGTH IN COMING MONTHS THAN MOST ECONOMISTS EXPECT ESPECIALLY AFTER FRIDAY'S DISMAL MARCH EMPLOYMENT REPORT MY BELIEF IS THAT THE ECONOMY IS STRONGER THAN PERCEIVED HE SAYS IT'S JUST A QUESTION OF WHEN THE MARKET RECOGNIZES IT STRONG GAINS IN EMPLOYMENT IN COMING MONTHS WILL BE THE MOST IMPORTANT INDICATOR OF SUCH GROWTH HE SAYS ALSO HIGH ON HIS LIST IS POSSIBLE IMPROVEMENT IN THE INFLATION OUTLOOK AND ANOTHER BIG RALLY IN BOND PRICES AS A RESULT GOVERNMENT INFLATION REPORTS LAST MONTH SHOWED A STARTLING RISE IN PRICES THAT SPOOKED BOND TRADERS BUT MR WIEN CONTENDS THAT THE INCREASES WERE TEMPORARY AND THAT FUTURE REPORTS PROBABLY WILL SHOW INFLATION SUBSIDING ONCE AGAIN IF THEY DO HE SAYS YIELDS ON LONGTERM BONDS WILL SLIP BACK DOWN TO 66 OR EVEN LOWER FROM THEIR CURRENT LEVELS OF MORE THAN 7 ONE OF THE PERCEPTIONS THAT IS HOLDING BACK THE STOCK MARKET RIGHT NOW IS THAT THE LONGTERM BOND RALLY IS OVER HE SAYS BUT I'M NOT AT ALL SURE IT IS MR WIEN SUGGESTS THAT THE CLINTON ADMINISTRATION AND CONGRESS ALSO HOLD THE KEYS TO A STOCK MARKET RALLY THERE ARE FEARS HE SAYS THAT CONGRESS WILL PASS TAX INCREASES WITHOUT ADOPTING TRUE SPENDING CUTS AS WELL BUT IF INVESTORS BECOME CONFIDENT THAT SPENDING CUTS WILL ACCOMPANY TAX INCREASES THAT RENEWED CONFIDENCE COULD TRANSLATE INTO HIGHER STOCK PRICES AT THE SAME TIME INVESTORS FEAR THAT THE ADMINISTRATION'S HEALTHCARE OVERHAUL PROGRAM WILL PROVE COSTLY ENOUGH TO SAP THE ECONOMY IF INSTEAD THE PLAN IS PHASED IN OVER TIME AND ISN'T PUNITIVE OF SELECTED INDUSTRIES SUCH AS PHARMACEUTICALS IT TOO COULD BOOST INVESTOR CONFIDENCE TO A POINT THAT STOCK PRICES RALLY WHILE FOREIGN AFFAIRS AREN'T KEY FACTORS IN MR WIEN'S OPTIMISTIC OUTLOOK HE NOTES THAT ANY MOVE TOWARD STABILITY IN RUSSIA OR TOWARD PEACE IN BOSNIA OR THE MIDDLE EAST WOULD BOLSTER CONFIDENCE IN THE ECONOMY AND THE STOCK MARKET I THINK WE HAVE A LOT OF PEOPLE STANDING AROUND WHO WANT TO INVEST BUT THEY'RE LOOKING FOR SOME SIGNALS OR LEADERSHIP HE SAYS GIVEN HIS VIEW OF THE ECONOMY AND WHAT COULD TRIGGER A RALLY HE RECOMMENDS THAT INVESTORS CONCENTRATE ON ECONOMICALLY SENSITIVE STOCKS AND THOSE THAT RESPOND TO LOWER INTEREST RATES SUCH AS FINANCIAL SERVICES ISSUES A REBOUNDING ECONOMY WOULD HELP ENERGY STOCKS TOO HE SAYS RAO CHALASANI CHIEF INVESTMENT STRATEGIST AT KEMPER SECURITIES INC TAKES A DIFFERENT VIEW OF WHAT WILL DRIVE STOCK PRICES HIGHER HIS ARGUMENT IS THAT INVESTORS HAVE LITTLE CHOICE BUT TO GRAVITATE TOWARD STOCKS BECAUSE OF LOW INTEREST RATES AND RISING TAXES RETURNS ON CASH AFTER TAXES AND INFLATION ARE NEGATIVE HE SAYS AND WITH MOST OF THE CAPITAL GAINS BEHIND US IN THE BOND MARKET RETURNS THERE ARE EDGING INTO NEGATIVE TERRITORY TOO THE ONLY CHOICE YOU'RE LEFT WITH IS STOCKS HE ACKNOWLEDGES THAT HIS ARGUMENT ISN'T PARTICULARLY NEW IN FACT INVESTORS HAVE BEEN ABANDONING FIXEDINCOME INVESTMENTS FOR STOCKS FOR THE PAST TWO YEARS BUT HE SUGGESTS THAT THE RECOGNITION THAT THERE ISN'T ANY CHOICE IS BECOMING MORE WIDESPREAD HE POINTS OUT THAT BIG PENSION FUNDS FOR INSTANCE HAVE BEEN ASSUMING 8 TO 10 TOTAL ANNUAL RETURNS ON THEIR INVESTMENTS AND THAT THE ONLY WAY FOR THEM TO ACHIEVE THAT NOW IS TO SHIFT TO STOCKS IT'S TRUE THAT STOCK PRICES ARE VERY HIGH BY MANY VALUATION MEASURES HE CONCEDES BUT I THINK THERE IS A POSSIBILITY THAT INVESTORS WILL DISREGARD THE LEVEL OF RISK AND PUT MORE EMPHASIS ON PERFORMANCE ALTHOUGH MR CHALASANI IS BETTING THAT THE FLOW OF FUNDS TO US STOCKS WILL BOOST PRICES HE BELIEVES THAT FOR INVESTORS WILLING TO LOOK BEYOND THE US FINANCIAL MARKETS THERE ARE OTHER CHOICES THE ARGUMENT THAT YOU HAVE NO OTHER CHOICE BUT STOCKS DOESN'T HOLD WATER IF YOU'RE WILLING TO TAKE THE RISK OF FOREIGN STOCKS AND BONDS HE SAYS NOT ONLY ARE MARKETS ABROAD RELATIVELY CHEAP COMPARED WITH THE US BUT THE DOLLAR IS WEAK AND LIKELY TO REMAIN SO HE SAYS A WEAKENING DOLLAR AMPLIFIES THE RETURNS MADE IN FOREIGN MARKETS BECAUSE A US INVESTOR NOT ONLY GETS THE RETURNS FROM HIS INVESTMENT BUT ALSO IS PAID MORE DOLLARS WHEN THE GAINS ABROAD ARE TRANSLATED INTO US CURRENCY DESPITE INCREASING GLOOM AMONG CONSUMERS REFLECTED IN LAST WEEK'S CONSUMER CONFIDENCE REPORT MR CANELO SAYS BUSINESS CONFIDENCE IS RISING ALONG WITH SUCH KEY INDICATORS AS UNFILLED ORDERS AND OVERTIME IT'S CIRCUMSTANTIAL EVIDENCE THAT THE ECONOMY IS DOING BETTER THAN PEOPLE THINK BUT IT COULD LEAD TO A BOOM IN HIRING THAT WOULD TOUCH OFF A CHAIN OF EVENTS HE SAYS INCLUDING BETTER ESTIMATES OF ECONOMIC GROWTH UPWARD ESTIMATES FOR EARNINGS AND EVENTUALLY BIG ASSET ALLOCATION SHIFTS TO STOCKS BUT THE HIGHER STOCK PRICES RISE THE MORE LIKELY THEY ARE TO BUMP INTO THE LONGERTERM PROBLEMS THAT MR CANELO SAYS WILL CONTINUE TO WORRY INVESTORS NOT THE LEAST OF THOSE IS THE CLINTON ADMINISTRATION'S HEALTHCARE OVERHAUL EFFORT WHICH COULD TURN OUT TO BE SO EXPENSIVE THAT IT WILL MAKE A SHAMBLES OF ANY BUDGET DEFICITREDUCTION EFFORTS HE SAYS MR CANELO SUSPECTS THAT ALTHOUGH THE PLAN WILL BE ANNOUNCED NEXT MONTH THE DEBATE OVER HOW TO IMPLEMENT IT COULD CARRY FAR INTO 1994 IT ISN'T CLEAR TO ME THAT THE PLAN WILL BE PASSED THIS YEAR AND IF IT ISN'T WE'LL HAVE A LONG DARK CLOUD OVER EVERYTHING FOR THE REST OF THIS YEAR HE WARNS AN INCREASE IN JOBS GROWTH OR OTHER EVIDENCE OF A STRONGER ECONOMY FURTHER DECLINES IN INFLATION AND INTEREST RATES BIG MOVES INTO STOCKS BY PENSION FUNDS SEEKING HIGHER RETURNS SUBSTANTIAL GOVERNMENT SPENDING CUTS AND AN AFFORDABLE HEALTHCARE REFORM PROGRAM STABILITY IN RUSSIA AND MOVEMENT TOWARD RESOLVING TENSIONS IN THE MIDDLE EAST OR EASTERN EUROPE STOCK PRICES PLUNGED AS THE THREE THINGS INVESTORS FEAR THE MOST LOW PROFITS A WEAK ECONOMY AND HIGHER INTEREST RATES ALL EMERGED AT ONCE THE DOW JONES INDUSTRIAL AVERAGE PLUNGED 6863 OR 2 TO FINISH AT 337081 ITS LOWEST LEVEL SINCE MARCH 1 AND ITS BIGGEST ONEDAY DROP SINCE FEB 16 VOLUME SWELLED TO 323330000 SHARES ITS HIGHEST LEVEL IN TWO WEEKS STANDARD & POOR'S 500STOCK INDEX SLUMPED 891 OR 2 TO 44139 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 455 OR 18 TO 24419 DECLINING ISSUES SWAMPED ADVANCERS ON THE BIG BOARD 1614 TO 397 FOR THE WEEK THE INDUSTRIAL AVERAGE LOST 2 THE S&P 500 WAS DOWN 14 AND THE BIG BOARD'S COMPOSITE INDEX FELL 12 WORLDWIDE STOCK PRICES ROSE FRIDAY THE DOW JONES WORLD STOCK INDEX GAINED 021 TO 10242 A STARTLING EARNINGS DISCLOSURE FROM TOBACCO AND FOOD COMPANY PHILIP MORRIS SET THE DISMAL TONE THE NEW YORK COMPANY'S STOCK PLUNGED 14 3/4 OR 23 TO 49 3/8 ON VOLUME OF 34 MILLION SHARES ITS DROP ALONE WIPED MORE THAN 30 POINTS OFF THE INDUSTRIAL AVERAGE BUT THE BAD NEWS CAME FROM OTHER FRONTS TOO THE LABOR DEPARTMENT SAID NONFARM PAYROLLS FELL 22000 IN MARCH INSTEAD OF JUMPING 73000 AS ANALYSTS HAD PREDICTED THE UNEMPLOYMENT RATE WAS UNCHANGED AT 7 OF THE WORK FORCE STOCK INVESTORS COULDN'T FIND COMFORT IN THE BOND MARKET EITHER ALTHOUGH HIGHER BOND MARKET PRICES RECENTLY HAVE HELPED SOOTHE FEARS OF A DOWNTURN IN THE ECONOMY BONDS TUMBLED ALONG WITH STOCKS LONGTERM GOVERNMENT SECURITIES PLUNGED MORE THAN A POINT LIFTING THE YIELD ON THE 30YEAR TREASURY TO 706 ITS FIRST MOVE ABOVE 7 SINCE FEB 19 BOND TRADERS IN PART BLAMED INFLATION FEARS TOBACCO STOCKS CRUMBLED AMERICAN BRANDS LOST 3 3/4 TO 30 RJR NABISCO DROPPED 1 1/4 TO 6 3/4 BROOKE GROUP SLUMPED 1/2 TO 1 3/4 AND UST INC TUMBLED 3 1/8 TO 26 CABLE TELEVISION STOCKS PLUNGED FOR A SECOND STRAIGHT SESSION AFTER A FEDERAL COMMUNICATIONS COMMISSION VOTE THURSDAY THAT COULD PUSH CABLE SERVICE PRICES SHARPLY LOWER TIME WARNER SKIDDED 2 3/8 TO 30 3/4 IN NASDAQ TRADING TELECOMMUNICATIONS CLASS A FELL 2 3/8 TO 18 1/8 ELSEWHERE CONNER PERIPHERALS LOST 1 1/8 TO 13 1/2 AFTER THE SAN JOSE CALIF COMPUTER DISK DRIVE MAKER ESTIMATED THAT ITS FIRSTQUARTER EARNINGS WILL BE SUBSTANTIALLY BELOW THE LEVELS FORECAST BY ANALYSTS ACCORDING TO ZACKS INVESTMENT RESEARCH CONNER'S PROFIT HAD BEEN FORECAST AT ABOUT 46 CENTS A SHARE AMONG PERSONAL COMPUTER MAKERS' SHARES COMPAQ COMPUTER FELL 3 1/4 TO 46 3/4 WHILE IN OVERTHECOUNTER TRADING APPLE COMPUTER LOST 1 5/8 TO 50 1/8 AND DELL COMPUTER DROPPED 2 1/8 TO 32 7/8 STONE CONTAINER DROPPED 3 5/8 TO 9 THE CHICAGO PACKAGING COMPANY LATE THURSDAY SAID IT PLANS TO RAISE AT LEAST 500 MILLION THROUGH THE SALE OF EQUITY PROCEEDS WILL BE USED TO REDUCE ITS DEBT DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9304050133 930405 BUSINESS BRIEF CIRCA PHARMACEUTICAL INC DRUG MAKER TO SETTLE SUIT WITH 3 MILLION PAYMENT CIRCA PHARMACEUTICAL INC FORMERLY BOLAR PHARMACEUTICAL CO SAID IT WILL PAY 3 MILLION TO SETTLE LITIGATION WITH KV PHARMACEUTICAL CO OVER THE DISSOLUTION OF A JOINT VENTURE KV PHARMACEUTICAL HAD SUED THE COPIAGUE NY CONCERN THREE YEARS AGO TO DISSOLVE THE JOINT VENTURE FOR MARKETING CERTAIN CONTROLLEDRELEASE DRUGS SAID MELVIN SHAROKY PRESIDENT OF CIRCA MR SHAROKY SAID CIRCA HAD COUNTERSUED MR SHAROKY SAID KV PHARMACEUTICAL OF ST LOUIS SOUGHT 148 MILLION IN DAMAGES THE CASE WAS SCHEDULED TO GO TO TRIAL IN JUNE 9304050132 930405 CREDIT RATINGS BRIEF MDC HOLDINGS INC STANDARD & POOR'S UPGRADES RATING ON 80 MILLION DEBT STANDARD & POOR'S CORP SAID IT UPGRADED ITS RATING ON 80 MILLION OF MDC HOLDINGS INC'S SUBORDINATED DEBT TO TRIPLEC FROM TRIPLECMINUS CITING AN IMPROVED DEBT STRUCTURE AND BUSINESS POSITION THE DEBT RATING AGENCY SAID THE RATING IS ALSO BASED ON THE DENVER HOME BUILDER'S REDUCTION IN PERSONNEL AND OVERHEAD EXPENSES ITS DIVESTITURE OF ASSETS AND THE RESOLUTION OF POTENTIAL CIVIL CLAIMS WITH THE RESOLUTION TRUST CORPORATION AND THE FEDERAL DEPOSIT INSURANCE CORP 9304050131 930405 SOME FANNIE MAE INVESTORS ARE ANGRY OVER PLAN TO SPEED UP PREPAYMENTS BY LYNN K ADLER SPECIAL TO THE WALL STREET JOURNAL NEW YORK SOME INVESTORS ARE ANGERED BY A MOVE BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION TO SPEED PREPAYMENTS ON 37 BILLION OF ITS SECURITIES THEY SAY FANNIE MAE GAVE LITTLE NOTICE OF THE PAYOFF CHANGE THEY ALSO CONTEND IT WAS DONE AT THE MOST ADVANTAGEOUS TIME FOR THE COMPANY BUT AT THE WORST TIME FOR MORTGAGEBACKED SECURITIES MBS INVESTORS SOME INVESTORS HAVE BEEN BADLY PUMMELED BY THE THE MORTGAGE SECURITIES MARKET'S GYRATIONS DURING THE PAST TWO YEARS PREPAYMENTS PRIMARILY OCCUR WHEN HOMEOWNERS REFINANCE A MORTGAGE OR PURCHASE A NEW HOME RETIRING AN OUTSTANDING MORTGAGE LOAN EITHER ACTION RESULTS IN THE LOANS BEHIND MBS ISSUES BEING REPAID FAR BEFORE THEY ARE DUE TO MATURE MANY SECURITIES LOSE MARKET VALUE AND INVESTORS MUST REINVEST AT PREVAILING INTEREST RATES WHICH ARE LOWER FANNIE MAE'S PLAN TO STANDARDIZE REMITTANCE MEANS SOME OF ITS MBS INVESTORS WILL RECEIVE PAYMENT ONE MONTH AFTER THEIR HOLDINGS ARE PREPAID THE MOVE SPECIFICALLY AFFECTS ABOUT 37 BILLION OF FANNIE MAE'S 450 BILLION OUTSTANDING SECURITIES WHICH NOW GET PAID BACK AFTER TWO MONTHS THE EFFECT FOR INVESTORS IS THAT THEY GET ONE LESS MONTH'S INTEREST AT OLDER HIGHER RATES AND MUST REINVEST AT A TIME WHEN RATES ARE LOWER IT'S NOT AS MUCH THE ACTUAL DOLLAR IMPACT ON THEIR HOLDINGS AS A MATTER OF PRINCIPLE INVESTORS CONTEND SEVERAL SAY THEY HAVE LESS TRUST NOW IN THE COMPANY THAT THEY HAVE HIGHLY REVERED AND MAY LOOK MORE CLOSELY NOW AT FREDDIE MAC INVESTMENTS CURTIS ISHII INVESTMENT OFFICER WITH THE CALIFORNIA PUBLIC EMPLOYMEES RETIREMENT SYSTEM CALPERS OWNS AT LEAST 3 BILLION IN FANNIE MAE COLLATERAL AND REAL ESTATE MORTGAGE INVESTMENT CONDUITS IN A 20 BILLION PENSION FUND HE EXPECTS THE NET IMPACT ON THAT PORTFOLIO TO BE SMALL BUT THE MORE IMPORTANT POINT IS THAT THIS IS JUST MORALLY AND ETHICALLY WRONG HE SAYS FANNIE MAE IS A QUASIGOVERNMENT ENTITY LINING ITS OWN POCKETS HE ASSERTS IT'S IN A BONUS SITUATION BUT IT'S ALSO OUT THERE HURTING PEOPLE WHO SUPPORT THEM AND TO THE GAIN OF MANAGEMENT OR STOCKHOLDERS THAT'S NOT A WAY WE WANT PEOPLE TO ENHANCE THE VALUE OF THE COMPANYTRANSFERRING MONEY FROM ONE PARTY TO ANOTHER IF ANY OF THE BONDS I MIGHT LOOK AT HAVE THOSE POOLS IN THEM I WILL NOT BUY THEM SAYS WILLIAM MAWHORTER PRESIDENT AND CHIEF INVESTMENT OFFICER AT ALLEGIANCE CAPITAL IN HUNTINGTON BEACH CALIF I WILL NOT GIVE THEM FANNIE MAE A FREE OPTION TO CHANGE HOW THEY TAKE IN FUNDS AS THE YIELD CURVE SHIFTS LIKE OTHERS HE'S CONCERNED THAT IF THEY CAN CHANGE IT BACK THIS WAY BECAUSE IT'S TO THEIR BENEFIT THEN THEY CAN JUST CHANGE IT BACK AGAIN AND POCKET ADDITIONAL MONEY OUT OF THE PORTFOLIO BREAKING FAITH WITH THE INVESTOR COMMUNITY WITH THE TREASURY YIELD CURVE SO STEEP FANNIE MAE PULLS IN LOW RETURNS ON ITS SHORTTERM INVESTMENTS WHILE PAYING OUT MUCH HIGHER RATES TO INVESTORS THE EXTRA MONTH PAYOFF DELAY ON THE 37 BILLION FANNIE MAE SECURITIES HAS BEEN COSTING FANNIE MAE MONEY EVERY MONTH EVER SINCE THE YIELD CURVE STEEPENED SAYS HOWARD HILL MANAGING DIRECTOR AT DAIWA SECURITIES AMERICA IT DIDN'T COST THEM IN 1989 WHEN THE CURVE WAS FLAT OR INVERTED AT THAT TIME FANNIE MAE COULD INVEST FOR THAT EXTRA MONTH AND GET ALMOST THE COUPON THEY PAID OUT MR ISHII OF CALPERS BELIEVES HOWEVER THAT FANNIE MAE SHOULD NOT BE IN THERE TO ARBITRAGE THIS MARKET BUT TO FACILITATE THE HOUSING MARKET HE DECLINED TO SAY WHETHER HE'D PARE HIS FANNIE MAE HOLDINGS BUT IT WILL AFFECT OUR DECISIONS HE SAYS DAVID JEFFERS FANNIE MAE VICE PRESIDENT FOR CORPORATE RELATIONS SAYS THE CHANGE WAS SPURRED MAINLY BY NEW TECHNOLOGY THAT ALLOWS THE COMPANY TO ACCELERATE PAYMENTS THE COMPANY ISN'T MAKING MONEY ON THE STANDARDIZATION HE CONTENDS IT'S TRUE THAT BY DOING THIS WE'RE NO LONGER LOSING THIS MONEY BUT IT'S AN ABSENCE OF A LOSS RATHER THAN A GAIN HE SAYS FANNIE MAE ACTS AS ITS OWN TRUSTEE BEFORE BECAUSE TECHNOLOGICALLY WE COULDN'T PASS THE FUNDS THROUGH FOR TWO MONTHS WE PAID INTEREST OUT OF OUR POCKET FOR ONE MORE MONTH HE SAYS YOU CAN FIND NO OTHER TRUSTEE IN THE WORLD THAT PAYS INTEREST FOR ONE MORE MONTH OUT OF THEIR POCKET IN RESPONSE TO WORRIES THAT FANNIE MAE WILL CHANGE ITS RULES AGAIN MR JEFFERS SAYS WE ALREADY TOLD THE PSA PUBLIC SECURITIES ASSOCIATION THAT WE WILL NOT DO IT AGAIN THE LANGUAGE LEAVING OPEN THE POSSIBILITY OF A PAYOFF CHANGE HAD BEEN IN PROSPECTUSES BECAUSE WE NEEDED TO DO THIS EVENTUALLY BUT THE LANGUAGE WILL NOT BE IN FUTURE PROSPECTUSES HE SAID 9304050130 930405 GM UNIT WINS ORDER HALTING VW RECRUITING INJUNCTION PREVENTS EFFORTS BY GERMAN FIRM LOPEZ TO HIRE GM MANAGERS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL THE SPAT BETWEEN GENERAL MOTORS CORP AND VOLKSWAGEN AG HAS ESCALATED INTO A COURTROOM POWER STRUGGLE OVER VW'S TOP COSTCUTTER FORMER GM PURCHASING BOSS J IGNACIO LOPEZ DE ARRIORTUA ON FRIDAY GM'S ADAM OPEL AG UNIT CONVINCED A DISTRICT COURT IN ITS HOME REGION OF FRANKFURT AM MAIN TO ISSUE A TEMPORARY INJUNCTION HALTING EFFORTS BY VW AND MR LOPEZ TO LURE MANAGERS AWAY FROM OPEL AND GM EUROPE GM EUROPE HAS ACCUSED MR LOPEZ WHO DEFECTED TO VW FROM GM LAST MONTH OF DANGLING EXCESSIVE SALARY OFFERS TO WOO AS MANY AS 40 OPEL AND GM MANAGERS TO BECOME LIEUTENANTS IN HIS CRUSADE TO TURN AROUND VW'S STUMBLING OPERATIONS GM EUROPE IS VW'S MAIN RIVAL IN GERMANY AND OTHER KEY EUROPEAN MARKETS VW REPLIED TO THE FRANKFURT COURT'S ACTION FRIDAY BY SAYING IT HAS DONE NOTHING IMPROPER OUR LEGAL INVESTIGATION HAS SHOWN THAT EVERYTHING WE HAVE DONE IS OK AND CORRECT A VW SPOKESMAN SAID THE SPOKESMAN DECLINED TO COMMENT ON WHAT VW'S RESPONSE TO THE FRANKFURT COURT'S ORDER WOULD BE WHILE IT'S UNCLEAR HOW LONG OPEL CAN STOP VW FROM MAKING JOB OFFERS ANYTHING GM OPEL DOES TO DISTRACT MR LOPEZ FROM ADDRESSING VW'S STUBBORN COST PROBLEMS WORKS TO OPEL'S ADVANTAGE ANALYSTS SAID VW LAST WEEK SAID IT HAD A FIRSTQUARTER LOSS OF 125 BILLION MARKS 7776 MILLION AND LAUNCHED A SWEEPING COSTREDUCTION CRUSADE VOLKSWAGEN MANAGEMENT HAS TO GET ITS HOUSE IN ORDER AND IT'S NOT GOING TO DO THAT BY FIGHTING WITH GM SAID WERTHEIM SCHRODER ANALYST JOHN CASESA LEFT UNRESOLVED IN FRIDAY'S LEGAL MANEUVERS WAS GM'S DEMAND THAT MR LOPEZ DECLARE IN WRITING THAT HE DIDN'T TAKE CONFIDENTIAL INFORMATION ABOUT GM'S PROD UCT AND MARKETING STRATEGIES TO VW SO FAR VW HAS DECLINED TO COMMENT ON THE ISSUE SEPARATELY GM'S BOARD MEETS TODAY AND IS EXPECTED TO MAKE A PERSONNEL ANNOUNCEMENT THAT COULD INCLUDE A NEW HEAD OF PURCHASING TO SUCCEED MR LOPEZ MR LOPEZ WILL BE A TOUGH ACT TO FOLLOW IN TEN MONTHS AS HEAD OF GM'S WORLDWIDE PURCHASING HE SHOOK UP GM'S RELATIONS WITH SUPPLIERS AND PUT GM ON TRACK TO CUT AS MUCH AS 4 BILLION FROM MATERIALS COSTS BY THE END OF THIS YEAR BUT MR LOPEZ'S ACTIONS AT VW ARE PROMPTING A HARSH REEVALUATION OF HIM AMONG FORMER GM COLLEAGUES FORMER GM CHAIRMAN ROBERT C STEMPEL CAPTURED THE MOOD AMONG SOME GM EXECUTIVES AND GM SUPPLIERS AS FAR AS I'M CONCERNED ABOUT LOPEZ IT'S GOOD RIDDANCE MR STEMPEL SAID AFTER A SPEECH IN DETROIT FRIDAY ADDING THAT HE WAS MERELY SPEAKING FOR HIMSELF TIMOTHY AEPPEL CONTRIBUTED TO THIS ARTICLE 9304050129 930405 FRENCH LEADER TAKES STEPS FOR INDEPENDENCE FOR BANK OF FRANCE PARIS FRANCE'S NEW PRIME MINISTER EDOUARD BALLADUR SET IN MOTION A PROCESS THAT WILL LEAD TO THE INDEPENDENCE OF THE BANK OF FRANCE AT THE FIRST MEETING OF THE NEW CABINET FRIDAY MR BALLADUR ASKED ECONOMICS MINISTER EDMOND ALPHANDERY TO START PREPARING A BILL ON CHANGING THE STATUTES OF THE CENTRAL BANK SAID GOVERNMENT SPOKESMAN NICOLAS SARKOZY WHO ALSO HOLDS THE POST OF BUDGET MINISTER THE CENTERRIGHT'S ELECTORAL PLATFORM PRIOR TO THE LEGISLATIVE ELECTIONS THAT RETURNED THEM TO POWER LAST SUNDAY PLEDGED THAT THE NEW GOVERNMENT WOULD MOVE QUICKLY TO MAKE THE BANK OF FRANCE INDEPENDENT BEFORE THE END OF THIS YEAR IT WAS FELT SUCH A MOVE WOULD BOLSTER THE FRENCH FRANC ON THE FOREIGN EXCHANGE MARKET BY STRENGTHENING THE CONFIDENCE OF NONRESIDENTS IN THE CURRENCY GIVING THE BANK GREATER INDEPENDENCE IT WAS ARGUED WOULD ELIMINATE THE BASIS FOR SPECULATION THAT THE GOVERNMENT MIGHT BE TEMPTED TO DEVALUE THE FRANC IN ORDER TO OBTAIN SOME SHORTTERM RESPITE FROM HIGH INTEREST RATES SOME MEMBERS OF THE COALITION HAD SUGGESTED RECENTLY THAT THE FRANC SHOULD BE PULLED OUT OF EUROPE'S EXCHANGE RATE MECHANISM THE STRONG FRANC POLICY FOLLOWED IN RECENT YEARS HAS INVOLVED MAINTAINING THE FRANC'S CENTRAL ERM PARITY AGAINST THE GERMAN MARK EVEN AT THE COST OF PUNISHINGLY HIGH INTEREST RATES IN FRANCE BY DELINKING THE FRANC FROM THE MARK THESE POLITICIANS SAID THE NEED TO KEEP INTEREST HIGH WOULD END AND ECONOMIC ACTIVITY WOULD BE SPURRED 9304050128 930405 BUSINESS BRIEF STATE AUTO FINANCIAL CORP INSURER SAYS MARCH STORM WILL TRIM 1STQUARTER NET STATE AUTO FINANCIAL CORP SAID DAMAGE FROM THE MARCH STORM IN THE EASTERN US WILL REDUCE ITS FIRSTQUARTER EARNINGS BY ABOUT 12 MILLION AFTER TAXES THE AMOUNT IS EQUIVALENT TO 21 CENTS A SHARE BEFORE ADJUSTING FOR A 2FOR1 STOCK SPLIT DUE ON APRIL 7 IN THE 1992 FIRST QUARTER THE PROPERTY AND COLUMBUS OHIO CASUALTY INSURANCE HOLDING CONCERN HAD NET INCOME OF 27 MILLION OR 47 CENTS A SHARE ANALYSTS HAD EXPECTED PERSHARE PROFIT FOR THE 1993 FIRST QUARTER OF 45 CENTS TO 55 CENTS BEFORE THE STORM LOSSES THE COMPANY SAID RESULTS WILL BE REPORTED ON MAY 5 9304050127 930405 AMERICAN AIRLINES VIES WITH UNITED FOR LONDON ROUTE BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL JUST DAYS AFTER UNITED AIRLINES OFFERED TO BUY USAIR GROUP INC'S ROUTE BETWEEN PHILADELPHIA AND LONDON FOR 145 MILLION AMERICAN AIRLINES ASKED THE DEPARTMENT OF TRANSPORTATION TO AWARD IT THE ROUTE FOR FREE THE MOVE PITS THE TWO LARGEST US CARRIERS AGAINST EACH OTHER FOR A POTENTIALLY LUCRATIVE EUROPEAN ROUTE IT ALSO SETS THEM AGAINST THE BRITISH GOVERNMENT BECAUSE BOTH CARRIERS WANT TO FLY INTO LONDON'S HEATHROW AIRPORT ONE OF EUROPE'S BIGGEST HUBS AND THE MOST DESIRABLE OF LONDON'S THREE AIRPORTS CURRENTLY THE ROUTE GOES INTO GATWICK AIRPORT THE BRITISH GOVERNMENT AND BRITISH AIRWAYS PLC IN THE PAST HAVE OPPOSED ADDITIONAL SERVICE TO HEATHROW THE ROUTE IS UP FOR GRABS BECAUSE USAIR WHICH FLIES IT AGREED TO GIVE IT UP IN JANUARY WHEN BRITISH AIRWAYS INVESTED 300 MILLION IN USAIR BASED IN ARLINGTON VA USAIR ALSO PLANS TO RELINQUISH ITS AUTHORITY BETWEEN GATWICK AIRPORT AND BALTIMORE AND CHARLOTTE NC BRITISH AIRWAYS WILL SERVE THOSE MARKETS AMERICAN A UNIT OF AMR CORP FORT WORTH TEXAS WANTS TO GET THE ROUTE IN PHILADELPHIA AMERICAN ORIGINALLY HAD CONTRACTED TO BUY THE ROUTE FROM TRANS WORLD AIRLINES INC AS PART OF A SIXROUTE PURCHASE IN 1990 BUT FEDERAL REGULATORS LIMITED THE ROUTE TRANSFER AND THE DOT AWARDED THE PHILADELPHIA PORTION TO USAIR UNITED AIRLINES A UNIT OF UAL CORP BASED IN ELK GROVE VILLAGE ILL OFFERED TO BUY THE PHILADELPHIALONDON ROUTE FOR 145 MILLION BUT ONLY IF IT CAN TRANSFER THE ROUTE AUTHORITY TO THE CHICAGOLONDON MARKET ON FRIDAY UNITED ACCUSED AMERICAN OF TRYING TO BLOCK UNITED FROM OPERATING TO LONDON FROM CHICAGO UNITED'S LARGEST HUB AMERICAN CURRENTLY FLIES FROM CHICAGO TO LONDON SEPARATELY PWA CORP PARENT OF CANADIAN AIRLINES INTERNATIONAL LOST A COURT CASE THAT IT HAD HOPED WOULD ELIMINATE A KEY OBSTACLE TO CONCLUDING ITS PLANNED ALLIANCE WITH AMR AN ONTARIO COURT DENIED PWA'S CLAIM THAT THE GEMINI GROUP COMPUTERIZED RESERVATION SYSTEM IT SHARES WITH RIVAL AIR CANADA IS INSOLVENT A FAVORABLE DECISION WOULD HAVE ENABLED PWA TO PULL OUT OEMINI AND GIVE ITS BUSINESS TO AMR'S SABRE SYSTEM SATISFYING A CONDITION OF AMR'S AGREEMENT TO INVEST 195 MILLION IN THE CALGARY ALBERTA AIRLINE WHILE THE COURT RULING NARROWS PWA'S ROOM FOR MANEUVER IT DOESN'T MEAN THE AMR DEAL IS DEAD TRIBUNAL WHICH HANDLES ANTITRUST MATTERS RECENTLY COMPLETED HEARINGS INTO WHETHER PWA SHOULD BE FREED FROM GEMINI IN ORDER TO MAINTAIN AIRLINE COMPETITION IN CANADA THE TRIBUNAL HASN'T RULED ON THE CASE YET THE INVESTMENT BY AMR ALSO IS CONDITIONED ON CANADIAN AIRLINES' SUCCESSFULLY COMPLETING DEBTRESTRUCTURING NEGOTIATIONS WITH ITS CREDITORS 9304050126 930405 REVIEW & OUTLOOK EDITORIAL THE CARVILLE MARKET STOCKS FELL 68 POINTS FRIDAY AND BONDS HEADED SOUTH AS WELL BOTH ARE STILL ABOVE THE LEVELS WHEN BILL CLINTON TOOK OFFICE THOUGH THE DOLLAR HAS HIT A RECORD LOW AGAINST THE YEN UNDERSTANDABLE ENOUGH WE SUPPOSE SINCE THE DOLLAR WAS BASHED BY TREASURY SECRETARY BENTSEN WHO TOLD THE NATIONAL PRESS CLUB I'D LIKE TO SEE A STRONGER YEN STOCKS BY CONTRAST WERE BASHED ONLY BY CLINTON POLITICAL STRATEGIST JAMES CARVILLE I LOOOOOOOOOVE THE STOCK MARKET FALLING HE CRACKED TO OUR PAUL GIGOT ABOUT THE PLUNGE FOLLOWING PRESIDENT CLINTON'S PREVIEW OF THE STATE OF THE UNION IN THE 1980S THE STOCK MARKET ROSE 300 AND REAL INCOMES FELL MAYBE NOW THE STOCK MARKET WILL FALL AND REAL INCOMES WILL RISE 9304050125 930405 BANGKOK BANK 1992 PROFIT ROSE 45 BANGKOK BANGKOK BANK LTD THAILAND'S LARGEST COMMERCIAL BANK REPORTED CONSOLIDATED NET PROFIT ROSE 45 IN 1992 TO 10541 BILLION BAHT 4155 MILLION FROM 7254 BILLION BAHT IN 1991 ACCORDING TO A STATEMENT RELEASED TO THE STOCK EXCHANGE OF THAILAND 9304050124 930405 INTERNATIONAL EMPLOYERS IN ISRAEL HAVE A HARD TIME GETTING WORKERS TO REPLACE PALESTINIANS BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV ISRAEL AT AN EMPLOYMENT FAIR IN TEL AVIV ZE'EV ASAF IS QUICK TO OFFER VISITORS A GLASS OF JUICE AND A JOB SIT DOWN HAVE A DRINK SAYS MR ASAF A BUILDING CONTRACTOR TO TWO MEN WHO WALK BY LET'S TALK ABOUT CONSTRUCTION WORK LIKE MANY ISRAELI EMPLOYERS MR ASAF HAS BEEN SCURRYING TO FIND REPLACEMENTS FOR HIS PALESTINIAN WORKERS SINCE THE ISRAELI GOVERNMENT DECIDED LAST WEEK TO BAR PALESTINIANS FROM THE WEST BANK AND GAZA STRIP FROM ENTERING ISRAEL TO GO TO WORK MR ASAF SIGHS AND DOWNS A GLASS OF JUICE HIMSELF I NEED 540 NEW WORKERS IMMEDIATELY HE SAYS BUT I'LL BE HAPPY IF I LEAVE HERE TODAY WITH 50 THEY WANT TO BE CONTRACTORS RIGHT AWAY NOT CONSTRUCTION WORKERS THE CLOSURE OF THE OCCUPIED TERRITORIES WHICH IS EXPECTED TO LAST THROUGHOUT THE JEWISH HOLIDAY OF PASSOVER THIS WEEK COMES AS THE ISRAELIS ATTEMPT TO CONTROL ESCALATING VIOLENCE THAT IN MARCH LEFT 15 ISRAELIS AND 26 PALESTINIANS DEAD IN ONE OF THE BLOODIEST MONTHS SINCE THE BEGINNING OF THE PALESTINIAN INTIFADA OR UPRISING FIVE YEARS AGO AS A RESULT EMPLOYERS FACING THE PROSPECT OF AS ONE ISRAELI COMMENTATOR PUT IT A KNIFE IN THE BACK OR A HOLE IN THE POCKET ARE NOW STEPPING UP EFFORTS TO REPLACE THEIR PALESTINIAN WORKERS IN MANY CASES THEY ARE FINDING THAT DESPITE AN UNEMPLOYMENT RATE ABOVE 11 ISRAELIS SIMPLY AREN'T INTERESTED IN MANUALLABOR JOBS ACCORDING TO THE GOVERNMENTRUN EMPLOYMENT SERVICE SINCE THE CLOSURE BEGAN EMPLOYERS HAVE FILED REQUESTS FOR 9000 WORKERS BUT ONLY 4500 ISRAELIS HAVE TAKEN THE JOBS WE DON'T WANT PALESTINIANS WORKING HERE EVEN AFTER THE CLOSURE IS LIFTED WE THINK WE CAN REPLACE ALL OF THEM IN A YEAR BUT WE CAN'T DO IT ALONE THE GOVERNMENT HAS TO AGREE THAT CONTRACTORS TAKING ON JEWISH EMPLOYEES WON'T BE FINED IF THEY'RE SIX OR NINE MONTHS LATE FINISHING A JOB SAYS ZVI FRIEDMAN SPOKESMAN FOR THE CONTRACTORS ASSOCIATION WHICH SET UP THE JOB FAIR IN TEL AVIV AND THREE OTHER LOCATIONS IN AN EFFORT TO IMMEDIATELY REPLACE ALL 60000 PALESTINIAN CONSTRUCTION WORKERS WITH ISRAELIS MR FRIEDMAN SAYS THAT SINCE THE PERSIAN GULF WAR ONLY HALF OF PALESTINIAN CONSTRUCTION WORKERS HAVE BEEN SHOWING UP FOR WORK BECAUSE OF STRIKES CLOSURES AND CURFEWS CAUSING DELAYS IN PROJECTS AND MASSIVE FINANCIAL LOSSES IN ADDITION MR FRIEDMAN SAYS THAT SINCE THE INTIFADA BEGAN PALESTINIAN WORKERS HAVE CAUSED MILLIONS OF DOLLARS IN DAMAGES TO APARTMENTS BY BLOCKING WATER PIPES WITH CEMENT TEARING OUT GAS AND ELECTRICITY LINES AND PUTTING ROTTEN EGGS INSIDE THE BUILDING BLOCKS WE'RE TIRED OF PROVIDING WORK FOR PEOPLE WHO THANK US BY CAUSING DAMAGES OR TRYING TO KILL US HE SAYS PALESTINIAN LEADERS SAY THE CLOSURE HAS CREATED A MASSIVE COLLECTIVE PRISON AND THROWN UP A NEW BLOCK TO MIDDLE EAST PEACE TALKS SUSPENDED SINCE PRIME MINISTER YITZHAK RABIN IN DECEMBER EXPELLED 415 ALLEGED MUSLIM ACTIVISTS FROM THE TERRITORIES TO LEBANON TO TRY TO ATTRACT ISRAELI WORKERS THE CONTRACTORS HAVE AGREED TO RAISE THE WAGES THAT UNSKILLED CONSTRUCTION WORKERS RECEIVE TO 25003000 SHEKELS A MONTH ABOUT 9251110 FROM ABOUT 2200 SHEKELS YESTERDAY THE ISRAELI GOVERNMENT TOOK STEPS TO REDUCE THE NUMBER OF PALESTINIANS FROM THE OCCUPIED TERRITORIES WORKING IN ISRAEL A SENIOR OFFICIAL TOLD REPORTERS AFTER THE WEEKLY CABINET MEETING THAT A TEAM HAD STARTED TO WORK IN THE LABOR MINISTRY TO REPLACE PALESTINIAN WORKERS WITH ISRAELIS LABOR MINISTER ORA NAMIR SAID SHE PLANS TO INTRODUCE LEGISLATION GUARANTEEING THAT PALESTINIAN WORKERS RECEIVE THE MINIMUM WAGE IN AN EFFORT TO DISCOURAGE ISRAELI EMPLOYERS FROM HIRING PALESTINIANS TO TAKE ADVANTAGE OF THEIR WILLINGNESS TO WORK LONG HOURS FOR LOW PAY THE WEST BANK AND THE GAZA STRIP CURRENTLY PROVIDE ABOUT 110000 WORKERS FOR JOBS WITHIN ISRAEL'S PRE1967 BORDERS ISRAELI ECONOMISTS SAY AN ECONOMIC SEPARATION FROM THE OCCUPIED TERRITORIES WON'T SIGNIFICANTLY AFFECT THE OVERALL ISRAELI ECONOMY POINTING OUT THAT THE INTIFADA CAUSED DAMAGES OF ONLY 1 OR 2 OF ISRAELI GROSS DOMESTIC PRODUCT IN 1990 BUT SECTORS OF THE ECONOMY THAT STILL RELY HEAVILY ON MANUAL LABOR SUCH AS CONSTRUCTION AND AGRICULTURE WHICH TOGETHER EMPLOY CLOSE TO 80 OF ALL PALESTINIAN WORKERS IN ISRAEL HAVE BEEN HARDHIT BY THE CLOSURE LEAVING CONSTRUCTION SITES PARALYZED AND FARMERS STRUGGLING TO GET CROPS PICKED AT THE HEIGHT OF THE HARVESTING SEASON THE ARMY SENT 1500 SOLDIERS TO HELP OUT SHORTHANDED FARMERS AND THE DEFENSE MINISTRY IS CONSIDERING A REQUEST BY THE CONTRACTORS ASSOCIATION TO DISCHARGE HUNDREDS OF SOLDIERS THREE MONTHS EARLY IN ORDER TO RECEIVE TRAINING TO WORK IN THE CONSTRUCTION INDUSTRY THE GOVERNMENT HAS OFFERED ISRAELIS WILLING TO HARVEST CITRUS AN EXTRA 40 SHEKELS A DAY ABOVE THE MINIMUM WAGE AND 30 SHEKELS EXTRA TO OTHER AGRICULTURAL WORKERS BUT EVEN SUCH INDUCEMENTS HAVEN'T ATTRACTED ENOUGH ISRAELI LABORERS THIS WEEKEND THE GOVERNMENT DECIDED TO ALLOW 1200 PALESTINIAN LABORERS TO RETURN TO AGRICULTURAL JOBS WITHIN ISRAEL AFTER FARMERS COMPLAINED THAT THE ISRAELI WORKERS LACKED PROPER TRAINING AND THAT THE FOOD WOULD ROT IN THE GAZA STRIP THE GUSH KATIF SETTLEMENT WHOSE FLOWER INDUSTRY EXCEEDS 25 MILLION IN EXPORTS AND WHICH ACCOUNTS FOR 40 OF THE COUNTRY'S TOMATO EXPORTS ENDED A BOYCOTT OF ARAB LABOR IMPOSED AFTER TWO MURDERS AFTER ONLY TWO WEEKS SAYING IT WAS TOO EXPENSIVE AND LESS EFFICIENT TO TAKE ON ISRAELI WORKERS THE PALESTINIANS DON'T HAVE ANY CHOICE BUT TO DEPEND ON THE ISRAELI ECONOMY FOR WORK SAYS SAID KANAAN CHAIRMAN OF THE PALESTINE RESEARCH AND STUDIES CENTER IN NABLUS WHO ESTIMATES LOST PALESTINIAN WAGES FROM THE CLOSURE AT 150 MILLION SHEKELS A WEEK BUT IN THE SHORT TERM THE ISRAELIS ARE DEPENDENT ON US AS WELL AS MUCH AS THEY DON'T WANT TO HIRE PALESTINIANS THEY KNOW THEY CAN'T BE COMPETITIVE WITHOUT IT AND SOONER OR LATER THEY START EMPLOYING THEM AGAIN AT A RECENT MEETING BETWEEN LABOR MINISTER NAMIR AND THE GUSH KATIF FARMERS FLOWER GROWER SHAIA DEUTCH GOT UP AND SAID THE ONLY FEASIBLE SHORTTERM SOLUTION IS TO LIFT RESTRICTIONS ON HIRING FOREIGN WORKERS FROM ASIA IN ORDER TO REPLACE PALESTINIANS MS NAMIR REFUSED CITING THE ZIONIST IDEAL OF HEBREW WORK THE NOTION THAT JEWISH HANDS SHOULD PERFORM WHATEVER PHYSICAL TASKS ARE NEEDED AND ARGUING THAT WORKERS SHOULD COME FROM THE RANKS OF THE UNEMPLOYED AFTER THE MEETING MR DEUTCH TOLD AN ISRAELI REPORTER THAT SUCH AN IDEA WOULD NEVER SUCCEED WHEN THE SUN COMES UP AND I HAVE HUNDREDS OF THOUSANDS OF FLOWERS READY TO GO TO MARKET AND IT'S THAT DAY OR THEY'RE LOST IT'S NO HELP TO HAVE A WORKER WHO WANTS TO GO HOME AT THREE HE SAID TWO WEEKS LATER HE WAS DEAD STABBED BY ONE OF HIS PALESTINIAN WORKERS 9304050123 930405 LAW DISCOVER MAKES FURTHER PROGRESS IN DUEL WITH VISA BY PETER PAE STAFF REPORTER OF THE WALL STREET JOURNAL DEAN WITTER DISCOVER & CO WON ANOTHER ROUND IN ITS BOUT WITH VISA USA AS A SALT LAKE CITY FEDERAL JUDGE LAST WEEK UPHELD A JURY DECISION GIVING DEAN WITTER THE RIGHT TO ISSUE VISA CREDIT CARDS BUT WHILE THE JUDGE'S RULING IS FAVORABLE FOR DEAN WITTER IT WASN'T IMMEDIATELY CLEAR WHETHER THE COMPANY COULD PROCEED WITH ISSUING THE PRIME OPTION VISA CREDIT CARDS AS THEY WILL BE CALLED DEAN WITTER WHICH WAS RECENTLY SPUN OFF BY SEARS ROEBUCK & CO ALREADY ISSUES THE DISCOVER GENERALPURPOSE CREDIT CARD A DIRECT COMPETITOR OF VISABRANDED CREDIT CARDS PRIMARILY ISSUED BY BANKS SO FAR THE JUDGE HAS REFUSED TO ORDER VISA TO LET DEAN WITTER START ISSUING THE VISA CARDS IN ADDITION VISA IMMEDIATELY VOWED TO APPEAL THE RULING WITH THE US APPELLATE COURT IN DENVER THE COURT FOR APPEALS FOR THAT AREA A DEAN WITTER SPOKESMAN SAID THAT WHILE THE COMPANY WAS DELIGHTED WITH THE JUDGE'S RULING IT DIDN'T KNOW EITHER IF OR WHEN IT COULD BEGIN ISSUING THE VISA CREDIT CARDS DESPITE THE RULING VISA CAN'T BE FORCED TO LET DEAN WITTER ISSUE THE CARDS WITHOUT A COURT ORDER WHILE A REQUEST FOR A COURT ORDER COULD BE AN OPTION THE SPOKESMAN SAID WE HAVEN'T COME UP WITH ANY DECISIONS YET THE RULING IS THE LATEST IN A CONTINUING LEGAL BOUT THAT BEGAN IN 1990 WHEN VISA REFUSED TO LET DISCOVER ISSUE VISA CREDIT CARDS THROUGH A THRIFT IT ACQUIRED IN SALT LAKE CITY WITH THE ACQUISITION DISCOVER HAD PICKED UP THE THRIFT'S MEMBERSHIP IN VISA AND THE RIGHT TO ISSUE VISABRANDED CREDIT CARDS VISA WHICH WAS CAUGHT OFF GUARD IMMEDIATELY BLOCKED DISCOVER'S EFFORTS TO ISSUE THE CREDIT CARDS CITING COMPETITIVE REASONS VISA HAS LIKENED DISCOVER'S EFFORTS TO BURGER KING TRYING TO GAIN ACCESS TO MCDONALD'S SECRETS IN THE LATEST RULING US DISTRICT COURT JUDGE DEE BENSON SPECIFICALLY DENIED A MOTION BY VISA FOR A NEW TRIAL EFFECTIVELY UPHOLDING THE DECISION BY A FEDERAL JURY THAT RULED LAST NOVEMBER IN FAVOR OF DISCOVER 9304050122 930405 REVIEW & OUTLOOK EDITORIAL IT'S OVER THE RAUCOUS SOUNDS ROARING OUT OF THE US SENATE SURELY MEAN THAT THE CLINTON HONEYMOON IS BUT A MEMORY IN FACT WHILE THE PRESIDENT IS A BIG FAN OF ELVIS IT SOUNDED TO US AS IF THE SONG THE BELTWAY'S POLITICIANS WERE SINGING FOR MR CLINTON THIS PAST WEEK WAS ROY ORBISON'S CLASSIC IT'S OVER ACTUALLY THE CLINTON ADMINISTRATION'S RELATIONSHIP WITH CONGRESS WAS SHAKY BEFORE THE REPUBLICANS DECIDED TO TAKE A STAND ON THE PRESIDENT'S 16 BILLION JOBS BILL THAT SHAKINESS IS A DIRECT RESULT OF THE POLITICAL STRATEGY THE ADMINISTRATION ADOPTED TO PURSUE ITS GOALS NOT ONLY WITH THE BUDGET BUT ON OTHER MATTERS AS WELL AFTER RUNNING A CENTRIST CAMPAIGN MR CLINTON CAME IN WITH A HARDLEFT ECONOMIC PROGRAM WHICH HE INTENDED TO PASS WITH ONLY DEMOCRATIC VOTES ITS SUCCESS DEPENDED CRUCIALLY ON ISOLATING THE REPUBLICANS BY CONVINCING THE PUBLIC THAT SOMETHING CALLED THOSE WHO BENEFITED FROM THE '80S WOULD BE PUNISHED BY THE PRESIDENT'S TAX PLANS WHILE SOMETHING CALLED THE BROAD MIDDLE CLASS WOULD BENEFIT FROM SOMETHING CALLED ECONOMIC STIMULUS THIS STRATEGY ISN'T WORKING PUT DIFFERENTLY THERE IS NO BETTER PURPOSE FOR A FILIBUSTER THAN TO KEEP THE PRESIDENT FROM ENACTING THE PROGRAM HE DENIED DURING THE CAMPAIGN MR CLINTON CAMPAIGNED AGAINST BELTWAY BUSINESS AS USUAL BUT THEN TURNS AROUND AND PROPOSES A STIMULUS PACKAGE SO LARDED WITH PORK THAT SENATE APPROPRIATED PORK CHAIRMAN BOBBY BYRD LEAPS FORWARD AS THIS YOUNG PRESIDENT'S GREATEST DEFENDER FOR AN ODIFEROUS SNIFF AT THE PORK LIST SEE THE EDITORIAL BELOW SEE RELATED STORY REVIEW & OUTLOOK EDITORIAL PORK CARRYOUT WSJ APRIL 5 1993 IN PRACTICE MR CLINTON'S POLITICS HAS ONLY SUCCEEDED IN UNITING MODERATE AND CONSERVATIVE REPUBLICANS TO STRIP THE PORK OUT OF THIS BILL THE BILL IS SO USELESS THAT IT HAS MANAGED TO DEFY THE LAWS OF POLITICAL PHYSICS UNITING THE LIBERAL REPUBLICAN JIM JEFFORDS OF VERMONT WITH MISSISSIPPI'S ENERGETICALLY CONSERVATIVE TRENT LOTT THE GOP VIEW AND WE THINK IT'S THE CORRECT ONE IS THAT THE VOTERS' IRE IS ALMOST WHOLLY DIRECTED AT PUBLIC SPENDING ITS ABUSES AND ITS INEFFICIENCIES IN RESPONSE PRESIDENT CLINTON SATURDAY REPEATED HIS INCREASINGLY SHOPWORN REFRAIN ABOUT ENDING THE GRIDLOCK IT WON'T WASH CSPAN'S VIEWERS SAW MAJORITY LEADER MITCHELL IN A NEWS CONFERENCE OFFERING A DOUBTING PRESS AN ABSTRUSE DISQUISITION ON THE DIFFERENCE BETWEEN REAL PORK AND REAL JOBS PROGRAMS NO LESS A DEMOCRATIC EMINENCE THAN KEATING FIVE SENATOR DON RIEGLE CAME FORWARD TO ANNOUNCE THAT AT THE HEART OF IT IT IS PRESIDENTIAL POLITICS IN 1996 IF THIS KEEPS UP WE WILL HAVE SEEN ONLY THE FIRST FILIBUSTER OF MANY THE PROBLEM WITH THIS BLAMETHEREPUBLICANSFOREVERYTHING STRATEGY IS THAT BY DEFAULT MR CLINTON SIMPLY CAN'T AFFORD TO OFFEND DEMOCRATIC VOTES IN THE SENATE ON ANY STRAIGHT PARTY VOTE HE'S EIGHT VOTES SHORT OF CLOSING OFF A FILIBUSTER SENATOR SHELBY OF ALABAMA THE OBJECT OF HIS DISCIPLINE ACTUALLY VOTED AGAINST HIM ON CLOTURE SENATOR KRUEGER OF TEXAS FACING REELECTION RAN FOR THE HILLS NOT VOTING AT ALL BECAUSE HE NEEDED THE VOTES OF WESTERN SENATORS SUCH AS BEN NIGHTHORSE CAMPBELL OF COLORADO THE PRESIDENT HAD TO BACK DOWN ON GRAZING FEES THIS IS A RECIPE FOR GRIDLOCK GOVERNMENT BY THE DEMOCRATIC CAUCUS OR NO GOVERNMENT AT ALL NOTWITHSTANDING SENATOR RIEGLE'S SHRIEKS ABOUT THE 1996 ELECTION TWO MONTHS INTO THE CLINTON PRESIDENCY IS PROBABLY A LITTLE EARLY TO START HOPING FOR THEWORSE THEBETTER THE FACT IS THAT A GOODLY NUMBER OF MODERATE DEMOCRATS ARE DISTURBED BY ALL THIS ONE DEMOCRAT WHO'S BEEN ATTEMPTING TO GET THE WHITE HOUSE TO MOVE OFF THIS LEFTWARD LEGISLATIVE STRATEGY IS SENATOR BREAUX OF LOUISIANA HE'S ALSO CHAIRMAN OF THE DEMOCRATIC LEADERSHIP COUNCIL THE CENTRIST MOVEMENT THAT HOPED AND ASSUMED THAT BILL CLINTON WAS GOING TO LIBERATE THE PARTY FROM THE LIBERAL ALBATROSS PERHAPS MR CLINTON IN TIME WILL GET HIS POLITICAL BEARINGS IN SYNC WITH HIS CAMPAIGN'S MESSAGE IN THE MEANTIME THE GOP STAND ON THE BUDGET IS PROVIDING SOME MUCHNEEDED DEFINITION TO THE DEBATE OVER MR CLINTON'S PURPOSES 9304050121 930405 QUARTERLY MUTUAL FUNDS REVIEW RICHARD S STRONG TAPS SUCCESSOR NEW YORK WELLKNOWN FUND MANAGER RICHARD S STRONG HAS HIRED HIS OWN SUCCESSOR AT ONE OF THE FUNDS HE MANAGES STRONG FUNDS SAID MR STRONG CHAIRMAN AND CHIEF INVESTMENT OFFICER AT STRONG FUNDS ANNOUNCED THAT HE WAS GIVING OVER THE HELM OF THE 560 MILLION STRONG TOTAL RETURN FUND TO RONALD C OGNAR WHO MOST RECENTLY WORKED FOR RCM CAPITAL MANAGEMENT LIKE MR STRONG MR OGNAR INVESTS IN THE STOCKS OF FASTGROWING COMPANIES MR STRONG WILL CONTINUE TO RUN THE STRONG DISCOVERY FUND AS CHIEF INVESTMENT OFFICER INCREASINGLY I WILL BE SPENDING TIME SETTING OBJECTIVES AND COORDINATING THE EFFORTS OF ALL OF OUR PORTFOLIO MANAGERS MR STRONG SAID STRONG FUNDS MANAGES MORE THAN 7 BILLION IN 16 MUTUAL FUNDS AND INSTITUTIONAL ACCOUNTS 9304050120 930405 THE WORLD'S A STAGE SO EVERYONE NEEDS LESSONS IN ACTING POLITICIANS CEOS AND DOCTORS STUDY PERFORMANCE SKILLS ADDING DRAMA TO DAY JOBS BY DAVID L GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHAT DO CAROL BURNETT AND PASADENA CALIF DEFENSE ATTORNEY PHOEBE SPENCE HAVE IN COMMON FOR ONE BOTH WERE TRAINED AT THE ESTELLE HARMAN ACTOR'S WORKSHOP IN LOS ANGELES NO MS SPENCE ISN'T ABOUT TO GIVE UP HER DAY JOB IN FACT SHE'S LEARNING HOW TO DO IT BETTER THE SCHOOL THAT HELPED TRAIN THE POPULAR COMEDIAN AND VARIETYSHOW HOST HAS ALSO TRAINED MS SPENCE IN COLD READING HAVING 20 MINUTES TO REVIEW A SCRIPT FOR AN AUDITION ISN'T MUCH DIFFERENT FROM LEARNING NEW INFORMATION IN THE MIDDLE OF A TRIAL AND HAVING TO MAKE DECISIONS ON WHERE TO GO WITH THAT ON THE FLY EXPLAINS MS SPENCE WHILE THIS MAY SEEM LIKE A QUIRKY LOS ANGELES FAD STUDIOS AND WORKSHOPS ON BOTH COASTS REPORT A GROWING INTEREST IN ACTING LESSONS AMONG NONPERFORMERS THE CAROL FOX PRESCOTT ACTING SCHOOL IN NEW YORK RUNS A CLASS FOR NONACTORS ENTITLED RETURN TO THE BREATH MANHATTAN'S MICHAEL HOWARD STUDIO WORKS ONEONONE WITH SEVERAL PUBLIC RELATIONS EXECUTIVES AS WELL AS ONE CORPORATE CHIEF EXECUTIVE SCHEDULING VOICE BODY AND IMPROVISATIONAL COACHING AROUND THEIR BUSY SCHEDULES HE WOULDN'T NAME HIS CLIENTS AL RAMOS A FORMER TRIAL ATTORNEY HIMSELF AND NOW ARTISTIC DIRECTOR AT TRIBECA LAB A NEW YORK ACTING SCHOOL RUNS A SEMINAR ENTITLED ACTING FOR LAWYERS STEVE OLSEN A 40YEAROLD ENGLISH TEACHER AT NEW YORK UNIVERSITY SCHOOL OF CONTINUING EDUCATION SPENDS HIS TUESDAY NIGHTS LEARNING ACTING AS WELL AS SINGING WRITING DANCING AND DRAWING WITH 10 OTHER MEN AND WOMEN AT CAROL FOX PRESCOTT IN VERY SUBTLE WAYS I THINK IT AFFECTS MY TEACHING REPORTS MR OLSEN HE SAYS VOICE AND MOVEMENT TRAINING PRACTICED IN THE ACTING WORKSHOP HELPS HIM GET STUDENTS TO FOCUS THEIR ATTENTION ON ME IT'S THE SAME SKILL A PERFORMER NEEDS TO SUSTAIN THE INTEREST OF HIS AUDIENCE RONALD RICKER A PROMINENT BEVERLY HILLS PSYCHIATRIST SAYS HE USED TO BE JUST AN ORDINARY OVERWORKED PSYCHIATRIST FEELING THAT HE COULD STAND TO LOOSEN UP A LITTLE BIT DR RICKER STUDIED IMPROVISATIONAL ACTING NOW HE SAYS HE IS A LOT MORE CREATIVE IN TERMS OF WORKING WITH PATIENTS AND PLANS TO LAUNCH A RADIO TALK SHOW IN LOS ANGELES LATER THIS YEAR LESLIE LOUBIER A HECTIC EXECUTIVE ASSISTANT AT COLUMBIA PICTURES CREDITS ACTING TRAINING FOR HER ABILITY TO FOCUS PAST THE CHAOS MUCH AS A STAGE ACTOR HAS TO AVOID BEING DISTRACTED BY CROWD NOISE SPEAKING OF CHAOS THE ESTELLE HARMAN SCHOOL CLAIMS TO HAVE WORKED EXTENSIVELY WITH POLITICIANS ALL OF WHOM OF COURSE MUST REMAIN CONFIDENTIAL SAYS MS HARMAN 9304050119 930405 QUARTERLY MUTUAL FUNDS REVIEW FIDELITY VANGUARD AND CAPITAL RESEARCH TOP THIS YEAR'S SALES NEW YORK FIDELITY INVESTMENTS VANGUARD GROUP AND CAPITAL RESEARCH & MANAGEMENT ARE DOMINATING MUTUAL FUND SALES SO FAR THIS YEAR ACCORDING TO FINANCIAL RESEARCH CORP A CHICAGO MUTUAL FUND RESEARCH FIRM THE THREE FUND GROUPS TOGETHER ACCOUNTED FOR MORE THAN ONETHIRD OF ALL SALES OF STOCK AND BOND MUTUAL FUNDS IN THE FIRST TWO MONTHS OF 1993 FINANCIAL RESEARCH ESTIMATES THE FUND INDUSTRY'S TOTAL SALES FOR THE PERIOD AT 384 BILLION INCLUDING FUNDS SOLD THROUGH BROKERS BANKS AND DIRECTLY TO THE PUBLIC BOSTONBASED FIDELITY AND VANGUARD OF VALLEY FORGE PA EACH ACCOUNTED FOR FIVE OF THE 20 TOPSELLING MUTUAL FUNDS FOR JANUARY AND FEBRUARY WHILE CAPITAL RESEARCH IN LOS ANGELES HAD TWO FUNDS AMONG THE TOP 20 BUT THE BESTSELLING FUND FOR THE TWO MONTHS CAME FROM NONE OF THESE FUND GROUPS INSTEAD THE TOP SELLER WAS JANUS FUND THE FLAGSHIP GROWTHSTOCK FUND MANAGED BY DENVER'S JANUS GROUP OF MUTUAL FUNDS 9304050118 930405 WHO'S NEWS VALUE HEALTH NAMES 3 EXECUTIVES TO HEAD NEWLY FORMED UNIT AVON CONN VALUE HEALTH INC SAID IT APPOINTED THREE NEW EXECUTIVES AND LAUNCHED A NEW COMPANY TO PROVIDE HEALTH INFORMATION AND MANAGEMENT SERVICES TO LARGE EMPLOYERS AND BUSINESS COALITIONS THE MOVES REFLECT THE CONCERN'S BELIEF THAT THERE IS AN UNTAPPED MARKET IN HELPING EMPLOYERS EVALUATE AND MANAGE HEALTH PLANS THAT PROVIDE CARE TO THEIR EMPLOYEES AND THEY ARE INTENDED TO POSITION THE COMPANY TO PROVIDE SERVICES TO BIG HEALTHPURCHASING ORGANIZATIONS THAT ARE ENVISIONED AS PART OF THE CLINTON ADMINISTRATION'S PLAN FOR REVAMPING THE US HEALTHCARE SYSTEM WE EXPECT THE HEALTH INFORMATION SERVICES FIELD WILL GROW RAPIDLY AS A PART OF A REFORMED HEALTHCARE SYSTEM SAID ROBERT E PATRICELLI PRESIDENT AND CHIEF EXECUTIVE OFFICER THE COMPANY NAMED WILLIAM J GOSS 39 YEARS OLD CURRENTLY MANAGER OF HEALTHCARE MANAGEMENT AT GENERAL ELECTRIC CO PRESIDENT AND CHIEF EXECUTIVE OF THE NEW COMPANY VALUE HEALTH MANAGEMENT MR GOSS FOUNDER OF THE COMPANY SAID IT WILL HELP EMPLOYERS MANAGE THE INCREASING COMPLEXITY OF HEALTHCARE SERVICES BY AMONG OTHER THINGS USING HEALTH DATA TO IMPROVE THE PERFORMANCE OF HEALTH PLANS ANY HEALTHPURCHASING ORGANIZATION ESTABLISHED UNDER NATIONAL HEALTHCARE REFORM WOULD LIKELY NEED SIMILAR SERVICES MR GOSS SAID NANCY BUCKMAN 41 FORMERLY VICE PRESIDENT FOR HEALTH BENEFITS AT FLEET FINANCIAL GROUP INC IS VICE PRESIDENT OF THE NEW COMPANY VALUE HEALTH SAID IT WILL INVEST UP TO 59 MILLION IN THE VENTURE WITH AN OPTION TO ACQUIRE IT ROBERT CHERNOW 46 SENIOR VICE PRESIDENT AT METROPOLITAN LIFE INSURANCE CO WAS NAMED PRESIDENT OF VALUE HEALTH INFORMATION GROUP A NEW DIVISION THAT WILL MANAGE INVESTMENTS IN THE NEW COMPANY AS WELL AS THE PREVIOUSLYANNOUNCED FUNDING OF AN INFORMATION SERVICES COMPANY VALUE HEALTH ALSO PROVIDES MANAGED CARE BENEFIT PROGRAMS IN PRESCRIPTION DRUGS MENTAL HEALTH AND SUBSTANCE ABUSE AND FOOT CARE IN 1992 THE COMPANY EARNED 146 MILLION ON REVENUE OF 2622 MILLION 9304050117 930405 POLITICS & POLICY CLINTON SEEMS TO TILT TOWARD ENVIRONMENTALISTS VOWS TO OFFER PLAN SOON TO BREAK TIMBER LOGJAM BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL PORTLAND ORE PRESIDENT CLINTON'S TIMBER MEETING APPEARS TO HAVE NUDGED THE ADVANTAGE TOWARD ENVIRONMENTALISTS IN THE FIGHT OVER FOREST POLICY MR CLINTON JOINED BY VICE PRESIDENT ALBERT GORE AND A TEAM OF TOP ADMINISTRATION OFFICIALS SPENT FRIDAY HERE LISTENING TO TIMBER WORKERS AND ENVIRONMENTALISTS ARGUE THEIR CASES FOR LOGGING OR FOREST AND WILDLIFE PROTECTION AFTERWARD THE PRESIDENT ANNOUNCED HIS ADMINISTRATION WOULD UNVEIL A COMPREHENSIVE FOREST PLAN WITHIN 60 DAYS DESIGNED TO BALANCE ENVIRONMENTAL AND ECONOMIC INTERESTS AND BREAK THE LOGJAM OVER TIMBER POLICY WE WILL MOVE WE WILL MOVE MR CLINTON VOWED THOUGH IT'S UNCLEAR WHICH DIRECTION THE TIMBER POLICY WILL TAKE THE MEETING LEFT THE IMPRESSION THE ADMINISTRATION PLANS TO PROPOSE MANY THINGS ENVIRONMENTALISTS HAVE SOUGHT WIDESPREAD PROTECTION FOR THE REMNANTS OF THE ANCIENT FORESTS RULES THAT PROMOTE GENTLER LOGGING PRACTICES ON OTHER PUBLIC TIMBER LANDS AND NO UNDERMINING OF CURRENT ENVIRONMENTAL LAWS AND THOUGH PRESIDENT CLINTON OFFERED SYMPATHY TO TIMBER WORKERS AND MADE IT CLEAR THE GOVERNMENT WOULD PUSH FOR RETRAINING PROGRAMS AND OTHER AID HE SAID I CAN'T REPEAL THE LAWS OF CHANGE TO SOME DEGREE THE MEETING WAS A REHASH OF THE ACCUSATIONS THAT HAVE BEEN MADE SINCE 1990 WHEN THE FEDERAL GOVERNMENT DECLARED THE SPOTTED OWL THREATENED AND THE COURTS BEGAN PUTTING MILLIONS OF ACRES OF NORTHWESTERN FORESTS OFF LIMITS TO LOGGING NADINE BAILEY WIFE OF A LUMBERJACK TALKED OF STAGGERING UNEMPLOYMENT IN TRINITY COUNTY CALIF WHERE SPOTTED OWL PROTECTIONS HAVE SHUT DOWN MUCH OF THE LOGGING ANDY KERR A LEADING ENVIRONMENTAL ACTIVIST COMPLAINED ABOUT ILLEGAL PRACTICES BY FEDERAL TIMBER AGENCIES THAT HE SAID HAVE LED TO THE PLUNDER OF THE NATION'S LAST OLDGROWTH FORESTS SUCH TIMBER COMPANY LEADERS AS DAN TOMASCHESKI OF SIERRA PACIFIC INDUSTRIES ASSERT THEY HAVE REVISED THEIR LOGGING PRACTICES AND CLAIM THEY CAN CUT TREES WITHOUT HARMING THE FORESTS AND THEY PREDICTED THAT THE INDUSTRY WOULD SUFFER ECONOMIC CALAMITY IF LOGGING RESTRICTIONS AREN'T LIFTED AFTER THE SUMMIT HOWEVER ENVIRONMENTALISTS AND TIMBER INTERESTS ALIKE PROFESSED SOME OPTIMISM A TRIBUTE TO MR CLINTON'S MASTERY OF THE TOWN MEETING FORMAT AND HIS GIFT FOR LEAVING ALMOST ALL PARTIES TO A DISPUTE FEELING THEY'LL GET SOMETHING THEY WANT BENEATH THE HOPEFUL TALK HOWEVER WAS SKEPTICISM MOMENTS AFTER THE SUMMIT CALIFORNIA GOV PETE WILSON PROCLAIMED THAT UNLESS YOU CHANGE ENVIRONMENTAL LAWS YOU'RE JUST GOING TO HAVE CONTINUED ENDLESS LITIGATION ONE POTENTIAL BATTLE ZONE CONCERNS ECOSYSTEMS MANAGEMENT AN EMERGING CONSERVATION THEORY THAT CALLS FOR PRESERVING INTACT SUFFICIENT HABITAT TO ASSURE THE WELLBEING OF ALL SPECIES DEPENDENT ON THAT TYPE OF HABITAT PARTICIPANTS USED THE TERM THROUGHOUT THE ONEDAY SUMMIT AS IF IT WERE A MAGIC SOLUTION THAT WOULD ALLOW SOME CUTTING WITHOUT DESTROYING WHOLE ECOSYSTEMS BUT NO ONE KNOWS HOW IT WOULD WORK IN THE FOREST AND COMBATANTS HAVE SHARPLY DIFFERENT NOTIONS OF WHAT IT MEANS I HEAR ECOSYSTEM MANAGEMENT I HEAR ECOSYSTEM' SAID MR KERR CONSERVATION DIRECTOR FOR THE OREGON NATURAL RESOURCES COUNCIL THE INDUSTRY HEARS ECOSYSTEM MANAGEMENT THEY HEAR MANAGEMENT' TO THEM THAT MEANS CUTTING LOTS OF TREES INDEED JACK WARD THOMAS THE FOREST SERVICE BIOLOGIST WHO HAS HEADED UP MUCH OF THE GOVERNMENT'S RESEARCH ON SPOTTED OWLS URGES CAUTION ON THE ECOSYSTEMSMANAGEMENT FRONT THERE MAY BE ONLY 100 PEOPLE IN THE WORLD TODAY THAT ARE GEARED UP FOR REALLY THINKING ABOUT WHAT ECOSYSTEM MANAGEMENT MEANS IN TERMS OF THE FORESTS HE SAID IT'S NOT GOING TO BE EASY AND IT'S NOT GOING TO BE CHEAP 9304050116 930405 EC IN DISCORD OVER RUSSIAN NUCLEAR FUEL BELGIUM TO PROTEST EC BAN ON INEXPENSIVE IMPORT AS A PROTECTIONIST MOVE BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY'S REFUSAL TO ALLOW IMPORTS OF CHEAP NUCLEAR FUEL FROM RUSSIA HAS EMERGED AS A POLITICAL ISSUE IN THE EC'S EVOLVING TRADE RELATIONS WITH STATES OF THE FORMER SOVIET UNION EC FOREIGN MINISTERS MEETING IN LUXEMBOURG ARE TODAY EXPECTED TO WIDEN TRADE NEGOTIATIONS WITH RUSSIA WITH AN EYE TO MORE LIBERALIZED TRADE ACCORDS IN THE FUTURE BUT AN ELEMENT OF DISCORD HAS EMERGED OVER NUCLEAR FUELS OFFICIALS SAY AND BELGIAN FOREIGN MINISTER WILLY CLAES PLANS TO MAKE A STATEMENT OF PROTEST AGAINST WHAT BELGIUM FEELS IS COMMUNITY PROTECTIONISM IN A SENSITIVE SECTOR EC ATOMIC ENERGY OFFICIALS BACKED BY COMMUNITY PRODUCERS OF NUCLEAR FUEL SUCH AS FRANCE AND BRITAIN HAVE RECENTLY REFUSED TO ALLOW SHIPMENTS OF CUTRATE PRICED RUSSIAN NUCLEAR FUEL UNDER THE 1957 TREATY ESTABLISHING THE EUROPEAN ATOMIC ENERGY COMMUNITY OR EURATOM EC OFFICIALS MUST APPROVE ALL SALES OF NUCLEAR FUELS BELGIUM WHICH IS TOTALLY DEPENDENT ON IMPORTED ENRICHED URANIUM FOR ITS AMBITIOUS NUCLEAR POWER PROGRAM WANTS NUCLEAR FUEL SALES TO INSTEAD BE GOVERNED BY GENERAL TRADE AGREEMENTS WORKED OUT BETWEEN BRUSSELS AND MOSCOW WITH ITS DEFENSE NEEDS FOR ENRICHED URANIUM DRASTICALLY REDUCED DUE TO THE COLD WAR'S END RUSSIA HAS ENORMOUS EXCESS CAPACITY TO PRODUCE NUCLEAR FUELS AT VERY LOW COST EC COMMISSION OFFICIALS SAY THEY RECOGNIZE RUSSIA'S NEED TO EXPORT ITEMS LIKE NUCLEAR FUEL IN ORDER TO GET HARD CURRENCY TO REBUILD ITS ECONOMY BUT INSIST THERE ARE VALID REASONS FOR BLOCKING THE IMPORT OF CHEAP NUCLEAR FUEL INTO THE COMMUNITY MASSIVE IMPORTS AT EXTREMELY LOW PRICES COMING FROM THE COMMONWEALTH OF INDEPENDENT STATES RISKS ENDANGERING THE DIVERSIFICATION OF THE COMMUNITY'S SUPPLY SOURCES AND HENCE ITS LONGTERM SECURITY OF SUPPLY THE EC COMMISSION SAID IN A REPLY TO INQUIRING MEMBERS OF THE EUROPEAN PARLIAMENT SAID AN OFFICIAL OF THE EURATOM SUPPLY AGENCY THE EC UNIT WHICH HAS BLOCKED THE SHIPMENTS FROM RUSSIA WE HAVE TO CONSIDER PRODUCERS WORLDWIDE IF THEY ALL GO OUT OF BUSINESS DO YOU WANT TO TURN ON YOUR LIGHTS AND BE DEPENDENT ON RUSSIA SENDING CYLINDERS OF ENRICHED URANIUM TOMORROW ACCORDING TO EC OFFICIALS RUSSIA HAS SOUGHT TO SELL ITS NUCLEAR FUEL AT PRICES 25 TO 50 BELOW WHAT THE EURATOM SUPPLY AGENCY FEELS IS A NORMAL MARKET PRICE OF AT LEAST 13 A POUND SO THAT AGENCY HAS REFUSED TO ENDORSE CONTRACTS CALLING FOR A PRICE BELOW THE 13 LEVEL LAST YEAR THE COMMUNITY IMPORTED 11 OF ITS ENRICHED URANIUM AND 25 OF ITS NATURAL URANIUM FROM THE CIS MUCH OF IT UNDER OLD CONTRACTS AT HIGHER PRICES BESIDES RUSSIA THE CIS REPUBLICS OF KAZAKHSTAN AND UZBEKISTAN HAVE BEGUN PRODUCING NUCLEAR FUELS FOR COMMERCIAL SALES BUT ONE OF THE WORLD'S TOP INTERMEDIARY COMPANIES FOR NUCLEAR FUELS DENVERBASED NUEXCO TRADING CORP SAID THE MARKET PRICE SET BY EC OFFICIALS IS AN ARTIFICIALLY INFLATED PRICE DESIGNED TO PROTECT INVESTMENTS BY EC COMPANIES IN WHAT HAS BECOME A SATURATED MARKET A NUEXCO REPRESENTATIVE SAID THE REAL OPEN MARKET PRICE IS 7 TO 9 A POUND THE EC IS RAISING A RED HERRING BY SINGLING OUT RUSSIA THE NUEXCO OFFICIAL SAID WHAT WE REALLY HAVE IS AN EXCESS OF STOCKPILED INVENTORY AND NUCLEAR FUEL IS ONE OF RUSSIA'S FEW EXPORTS TO THE WEST THAT IS VIABLE IT'S GOOD QUALITY FUEL HE SAID RUSSIAN PRESIDENT BORIS YELTSIN HAD PLANNED TO RAISE THE ISSUE OF NUCLEAR FUEL EXPORTS WITH US PRESIDENT BILL CLINTON AT THEIR SUMMIT IN VANCOUVER BECAUSE US PRODUCERS HAVE ALSO RESTRICTED RUSSIAN EXPORTS THROUGH COMPLAINTS TO THE US COMMERCE DEPARTMENT SOME CRITICS OF THE EC'S POLICY SAY IT POSES SECURITY RISKS IF CIS MEMBERS CANNOT SELL THEIR NUCLEAR FUEL IN EUROPE THEY COULD BE TEMPTED TO INSTEAD SELL IT TO COUNTRIES SUCH AS NORTH KOREA WHICH MIGHT USE IT FOR MISCHIEF THE ISSUE IS MAKING FOR STRANGE BEDFELLOWS IN THE EC BELGIUM WHICH SEEKS AN OPEN MARKET IN NUCLEAR FUELS OFTEN SIDES WITH THE COMMUNITY'S PROTECTIONIST CAMP WHILE BRITAIN IS THE LEADER OF A NORTHERN GROUP OF COUNTRIES USUALLY INSISTING ON FREE TRADE THE LEADING PRODUCERS IN THE COMMUNITY ARE THE FRENCH COMPANY COGEMA AND A BRITISHDUTCHGERMAN CONSORTIUM KNOWN AS URENCO WHICH INCLUDES BRITISH NUCLEAR FUELS PLC FRANCE CONSUMES ABOUT 55 OF THE 2 BILLION WORTH OF NUCLEAR FUELS BOUGHT IN THE EC EACH YEAR WHILE BELGIUM CONSUMES 8 A SIMILAR ISSUE AROSE IN THE US IN 1991 WHEN US NUCLEAR FUEL PRODUCERS BROUGHT AN ANTIDUMPING PETITION AGAINST PRODUCERS IN THE CIS PROVISIONAL ANTIDUMPING DUTIES OF 115 WERE IMPOSED SAID THE EURATOM SUPPLY AGENCY OFFICIAL AGREEMENTS WERE THEN SIGNED TO SUSPEND THOSE DUTIES WHILE EFFECTIVELY SETTING A FLOOR PRICE OF 13 A POUND 9304050115 930405 MAJOR RAILROADS EXPECTED TO POST EARNINGS GAIN GROUP'S FIRSTQUARTER NET PROBABLY ROSE SLIGHTLY DESPITE TWO PROBLEMS BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL MAJOR RAILROADS AS A GROUP ARE EXPECTED TO POST SLIGHTLY HIGHER FIRSTQUARTER EARNINGS DESPITE ROUGH WINTER WEATHER AND A DECLINE IN COAL TRAFFIC THAT BATTERED SOME EASTERN CARRIERS BLUNTING THE ADVERSE EFFECTS OF THE WEATHER AND COAL SHIPPING LEVELS WERE STRONGER INDUSTRIAL FREIGHT TRAFFIC AND CONTINUED COSTCUTTING EFFORTS INCLUDING LABOR CUTBACKS AND IMPROVED UTILIZATION OF ASSETS IF YOU LOOK BEYOND THE UNUSUAL EVENTS SUCH AS SEVERE WINTER WEATHER YOU SEE THAT THE RAILROADS CONTINUE TO MAKE IMPROVEMENTS SAID ANTHONY HATCH AN ANALYST AT PAINEWEBBER INC ANALYSTS ESTIMATE THAT FIRSTQUARTER EARNINGS INCREASED AT BURLINGTON NORTHERN INC CONSOLIDATED RAIL CORP SANTA FE PACIFIC CORP AND UNION PACIFIC CORP BUT THEY EXPECT LOWER EARNINGS AT CSX CORP AND NORFOLK SOUTHERN CORP WHICH ARE HIGHLY DEPENDENT ON COAL AND HAVE EXTENSIVE OPERATIONS IN THE SOUTHEAST WHICH EXPERIENCED THE WORST OF THE EAST COAST'S FIERCE LATEWINTER STORM THIS YEAR HAS REMINDED US THAT TRANSPORTATION IS AN OUTDOOR SPORT AND THAT MOTHER NATURE SOMETIMES WINS SAID ANDRAS PETERY AN ANALYST AT MORGAN STANLEY & CO THE STORM DELAYED FREIGHT TRAINS CLOGGED FREIGHT YARDS AND INCREASED OVERTIME COSTS MICHAEL LLOYD AN ANALYST AT COUNTY NATWEST SECURITIES USA ESTIMATED THAT FIRSTQUARTER EARNINGS FOR THE RAIL GROUP AS A WHOLE ROSE ABOUT 5 FROM A YEAR AGO EXCLUDING THE EFFECTS OF ACCOUNTING CHANGES AT SOME RAILROADS HE SAID ADOPTION OF NEW ACCOUNTING STANDARDS WILL HAVE A POSITIVE EFFECT AT NORFOLK SOUTHERN AND A NEGATIVE EFFECT AT CONRAIL ACCORDING TO THE ASSOCIATION OF AMERICAN RAILROADS TOTAL CARLOADINGS AT THE MAJOR RAILROADS DROPPED 14 DURING THE 12WEEK PERIOD ENDING MARCH 27 THE DECLINE REFLECTS SLUMPING COAL SHIPMENTS WHICH DROPPED 38 LUMBER TRAFFIC WAS OFF 35 HOWEVER CARLOADINGS IN MOST OTHER CATEGORIES WERE UP WITH PAPER INCREASING 11 CHEMICALS LESS THAN 1 METALS 16 AND GRAIN 16 CARLOADINGS OF MOTOR VEHICLES A PARTICULARLY LUCRATIVE CATEGORY FOR THE RAILROADS WERE UP 15 THE RAILROADS CONTINUED TO MAKE GAINS IN INTERMODAL TRAFFIC THE MOVEMENT OF HIGHWAY TRAILERS AND CONTAINERS ON RAILROAD FLATCARS SUCH TRAFFIC ROSE 6 IN THE 12WEEK PERIOD PARTIALLY REFLECTING MORE TRAFFIC GAINS AT THE EXPENSE OF LONGDISTANCE TRUCKING ALL THE COLD AND SNOW THAT DISRUPTED TRAIN OPERATIONS THIS WINTER HOWEVER FAILED TO BOOST DEMAND FOR COAL AT ELECTRIC UTILITIES COAL SHIPMENTS HAVE BEEN OFF IN RECENT YEARS BECAUSE OF A STRING OF MILD WINTERS AND UNSEASONABLY COOL SUMMERS WE HAD A REASONABLY COLD FEBRUARY AND MARCH AND I WOULD HAVE EXPECTED DOMESTIC COAL SHIPMENTS WOULD HAVE BEEN GOOD BUT COAL COMPARISONS ARE STILL NEGATIVE SAID MR LLOYD THE REASON FOR THE CONTINUING WEAKNESS HE SAID IS THAT ELECTRIC UTILITIES ARE TRYING TO REDUCE THEIR COSTS BY CUTTING THEIR COAL STOCKPILES WHAT'S MORE EXPORT COAL SHIPMENTS HAVE BEEN HURT BY THE WEAK ECONOMIES IN JAPAN AND GERMANY AND COMPETITION FROM OTHER COALSUPPLYING NATIONS AT CSX OPERATING EARNINGS AT THE RAIL UNIT WERE DOWN SLIGHTLY DESPITE COSTCUTTING PROGRAMS A SPOKESMAN SAID THE WINTER STORM MADE REVENUE ABOUT 20 MILLION LESS THAN WHAT IT WOULD HAVE BEEN AND INCREASED SOME COSTS A FREIGHT TRAIN DERAILMENT LAST MONTH TOTALED MORE THAN 300 NEW AUTOMOBILES CARRIED ABOARD THE TRAIN HE SAID COAL TRAFFIC IS DOWN AT LEAST 9 AND EXPORT COAL IS THE CULPRIT HE SAID OPERATING EARNINGS ALSO ARE DOWN AT CSX'S OCEANSHIP UNIT REFLECTING WEAK ECONOMIES ABROAD AND AT THE INLAND BARGE UNIT BECAUSE OF BAD WEATHER AND LOWER GRAIN AND COAL TRAFFIC THE CSX SPOKESMAN SAID HE EXPECTS THE COMPANY'S FIRSTQUARTER EARNINGS WERE WITHIN ANALYSTS' ESTIMATES OF BETWEEN 47 CENTS AND 53 CENTS A SHARE CSX REPORTED NET INCOME OF 62 MILLION OR 60 CENTS A SHARE IN THE 1992 FIRST QUARTER NORFOLK SOUTHERN DECLINED TO COMMENT ON ANALYSTS' ESTIMATES THAT THE COMPANY WILL REPORT FIRSTQUARTER EARNINGS EXCLUDING ANY EXTRAORDINARY ITEMS OF ABOUT 90 CENTS A SHARE IN THE YEAREARLIER FIRST QUARTER IT REPORTED NET INCOME OF 1387 MILLION OR 97 CENTS A SHARE A SPOKESMAN SAID SHARP IMPROVEMENTS IN GENERAL MERCHANDISE AND INTERMODAL TRAFFIC OFFSET DECLINES IN COAL TO BOOST TOTAL CARLOADINGS IN THE 12 WEEKS ENDING MARCH 27 BY 18 A SPOKESMAN FOR BURLINGTON NORTHERN SAID THE COMPANY IS COMFORTABLE WITH ANALYSTS' CONSENSUS ESTIMATES THAT FIRSTQUARTER EARNINGS WERE 76 CENTS A SHARE IT REPORTED NET INCOME OF 91 CENTS A SHARE IN THE YEAREARLIER QUARTER EXCLUDING NONRECURRING ITEMS EARNINGS WERE 71 CENTS A SHARE A BURLINGTON NORTHERN SPOKESMAN SAID COSTCUTTING EFFORTS MORE THAN OFFSET THE ADVERSE EFFECTS OF SEVERE WINTER STORMS THAT DISRUPTED ITS TRAIN OPERATIONS IN THE NORTH AND MIDWEST LAST JANUARY TRAFFIC LEVELS WERE UNFAVORABLY AFFECTED BY THE WEATHER AND WE WILL END UP BELOW LAST YEAR'S LEVELS IN VIRTUALLY ALL MARKET SEGMENTS HE SAID HOWEVER TRAFFIC LEVELS BEGAN TO IMPROVE IN EARLY MARCH AND CONTINUE TO RUN BETWEEN 4 AND 6 AHEAD OF YEAREARLIER VOLUME A SPOKESWOMAN FOR SANTA FE PACIFIC SAID FIRSTQUARTER EARNINGS WILL SHOW AN IMPROVEMENT FROM YEAREARLIER NET OF 16 CENTS A SHARE ANALYSTS' ESTIMATES RANGE FROM 17 CENTS TO 22 CENTS A SHARE THE SPOKESWOMAN SAID THE EARNINGS IMPROVEMENT REFLECTS SHARPLY HIGHER INTERMODAL AND AUTO SHIPMENTS AND CUTBACKS IN THE SIZE OF SOME FREIGHT TRAIN CREWS REDUCED INTEREST EXPENSE ALSO HELPED BUT THE EARNINGS INCREASE WAS ACHIEVED SHE SAID WITHOUT ANY CONTRIBUTION TO SPEAK OF FROM MINERALS DUE TO A WEATHERRELATED PRODUCTION SLOWDOWN IN GOLD MINING OPERATIONS MR PETERY THE MORGAN STANLEY ANALYST ESTIMATED THAT UNION PACIFIC'S FIRSTQUARTER EARNINGS ROSE TO 80 CENTS A SHARE FROM 71 CENTS IN THE YEAREARLIER QUARTER HE SAID CARLOADINGS AT THE RAIL UNIT SHOWED A SLIGHT IMPROVEMENT AND THE COMPANY'S RESOURCES UNIT BENEFITED FROM HIGHER NATURAL GAS PRICES AND VOLUMES AND INCREASED OIL PRODUCTION MR PETERY EXPECTS CONRAIL TO REPORT EARNINGS OF 55 CENTS A SHARE FULLY DILUTED COMPARED WITH 39 CENTS A SHARE FULLY DILUTED ADJUSTED FOR A 2FOR1 STOCK SPLIT PAID IN SEPTEMBER 1992 HE SAID THE RAILROAD BENEFITED FROM COST CUTS AND TRAFFIC GAINS PARTICULARLY IN INTERMODAL AND AUTO SHIPMENTS IN ADDITION CONRAIL COPED WITH THE WINTER STORM EFFICIENTLY HE SAID CONRAIL ALSO IS PURSUING A NEW APPROACH TO RAILROADING HE ADDED BY OPERATING SPECIALIZED SERVICE NETWORKS FOR DIFFERENT TYPES OF FREIGHT AS A RESULT CONRAIL IS IMPROVING EQUIPMENT UTILIZATION AND CUSTOMER SERVICE HE SAID OFFICIALS OF CONRAIL AND UNION PACIFIC WEREN'T AVAILABLE FOR COMMENT 9304050114 930405 MARRIOTT TURNS DOWN DEMANDS BY HOLDERS OVER SPLITTING FIRM WASHINGTON MARRIOTT CORP SAID IT REJECTED DEMANDS BY A GROUP OF PREFERRED STOCK SHAREHOLDERS WHO OPPOSE THE COMPANY'S PLAN TO SPLIT INTO A HOTEL MANAGEMENT ARM AND A REAL ESTATE COMPANY THE GROUP WHICH INCLUDES HARVARD COLLEGE UNION BANK OF SWITZERLAND AND ITS UBS SECURITIES INC UNIT WANTS MARRIOTT TO CHANGE ITS PLAN WHICH RECENTLY WAS REVISED TO MOLLIFY A GROUP OF BONDHOLDERS TO TREAT PREFERRED STOCKHOLDERS MORE FAVORABLY THE GROUP SAID IT MAY SUE AND SEEK COMPENSATION IF THE PLAN ISN'T CHANGED STEPHEN F BOLLENBACH MARRIOTT'S CHIEF FINANCIAL OFFICER SAID THE GROUP WAS SIMPLY TRYING A 1980SSTYLE GREENMAIL AND SAID MARRIOTT SEES NO MERIT IN THE CLAIMS MARRIOTT SAID THAT MEMBERS OF THE GROUP APPARENTLY BOUGHT THE PREFERRED SHARES AND SIMULTANEOUSLY SOLD SHORT MARRIOTT'S COMMON SHARES SHORT SELLERS BORROW STOCK TO SELL BETTING IT WILL FALL AND HOPE TO PROFIT BY REPLACING IT LATER AT A LOWER PRICE ATTORNEYS FOR THE PREFERRED SHAREHOLDERS COULDN'T BE REACHED FOR COMMENT MR BOLLENBACH NOTED THAT THE PREFERRED SHARES NOW TRADE AT MORE THAN 75 A SHARE COMPARED WITH 50 WHEN THEY WERE SOLD IN DECEMBER 1991 MARRIOTT'S PREFERRED A SHARES WHICH CLOSED FRIDAY AT 76125 A SHARE DOWN 875 CENTS HAVE RISEN ABOUT 19 SINCE THE COMPANY ANNOUNCED ITS ORIGINAL RESTRUCTURING PLAN IN OCTOBER 9304050113 930405 BUSINESS BRIEF INLAND STEEL INDUSTRIES INC CONTRACT TALKS ACCELERATE WITH UNITED STEELWORKERS INLAND STEEL INDUSTRIES INC SAID IT IS INTENSIFYING ITS TALKS WITH THE UNITED STEELWORKERS UNION IN AN EFFORT TO DRAFT A NEW LABOR CONTRACT THAT WOULD SET A PATTERN FOR THE STEEL INDUSTRY THE UNION HAD SELECTED USX CORP'S US STEEL TO SET A PATTERN FOR OTHERS IN THE INDUSTRY BUT LAST WEEK THE UNION AND USX BROKE OFF TALKS AMID DISAGREEMENTS A SPOKESMAN FOR THE STEELWORKERS SAID THE UNION IS ALSO ACCELERATING TALKS WITH NATIONAL STEEL CORP 9304050112 930405 BUSINESS BRIEF AMREP CORP FIRM TO TRIM WORK FORCE SAVE 18 MILLION ANNUALLY AMREP CORP SAID IT EXPECTS ANNUAL SAVINGS OF 18 MILLION THROUGH WORK FORCE REDUCTIONS OF ABOUT 38 ADMINISTRATIVE PERSONNEL AND MIDDLELEVEL SUPERVISORS AMREP SAID IN NEW YORK THAT THE MOVES WILL REDUCE NONESSENTIAL POSITIONS AND OVERHEAD EXPENSES SOME OF THE ADMINISTRATIVE TASKS WILL NOW BE HANDLED BY CONSULTANTS THE REALESTATE DEVELOPER AND MAGAZINE DISTRIBUTOR SAID AN INTERNAL TASK FORCE HAD IDENTIFIED AN ADDITIONAL 11 MILLION IN ANNUAL SAVINGS BUT DIDN'T SPECIFY ANY FURTHER STEPS AMREP ALSO SAID THAT IT EXPECTS INTEL CORP'S RECENTLY ANNOUNCED 1 BILLION EXPANSION OF ITS RIO RANCHO NM FACILITY TO BENEFIT AMREP WHICH IS A MAJOR LAND OWNER AND DEVELOPER IN THE AREA 9304050111 930405 WALGREEN'S MARCH SALES UP DEERFIELD ILL WALGREEN CO SAID ITS SAMESTORE SALES CLIMBED 73 IN MARCH THE DRUGSTORE CHAIN HAD TOTAL SALES OF 6968 MILLION FOR THE MONTH UP 12 FROM 621 MILLION IN MARCH 1992 9304050110 930405 BUSINESS BRIEF FOKKER NV YEAR'S PROFIT PLUNGED 74 INTEREST EXPENSES ARE CITED NET PROFIT OF DUTCH AEROSPACE CONCERN FOKKER NV FELL 74 IN 1992 DESPITE A 7 INCREASE IN SALES THE COMPANY ALSO OMITTED ITS 1992 DIVIDEND THE PLUNGE IN NET WAS CAUSED LARGELY BY A MORE THAN DOUBLING OF NET INTEREST EXPENSES TO 1256 MILLION GUILDERS 702 MILLION FROM 619 MILLION GUILDERS IN 1991 NET PROFIT FELL TO 20 MILLION GUILDERS LAST YEAR FROM AN ADJUSTED 77 MILLION THE PREVIOUS YEAR FOKKER SAID THAT ITS FINANCIAL RESULTS PUBLISHED FRIDAY HAVE BEEN REVISED TO BRING THEM IN LINE WITH THE FINANCIAL PRACTICES OF DEUTSCHE AEROSPACE AG THE AEROSPACE AND DEFENSE ARM OF DAIMLERBENZ AG THAT PLANS TO TAKE 51 CONTROL OF FOKKER THIS YEAR 9304050109 930405 BUSINESS BRIEF SOCIETE INTERNATIONALE PIRELLI SA SWISS AFFILIATE OF ITALIAN FIRM TO POST SLIGHT LOSS' FOR '92 SOCIETE INTERNATIONALE PIRELLI SA THE BASEL SWITZERLAND HOLDING COMPANY AFFILIATED WITH ITALY'S PIRELLI SPA SAID IT EXPECTS TO POST A SLIGHT LOSS ON A NONCONSOLIDATED BASIS FOR THE 1992 FISCAL YEAR THE COMPANY SAID THE LOSS STEMS FROM THE ABSENCE OF A FLOW OF DIVIDENDS FROM PRINCIPAL SHAREHOLDINGS IT DIDN'T PROVIDE ANY DETAILS HOWEVER THE SWISS CONCERN SAID IT DOESN'T INTEND TO DISTRIBUTE ANY DIVIDEND FOR 1992 THE COMPANY SAID THAT IT HAS EXTENDED ITS FISCAL YEAR WHICH WOULD HAVE RUN FROM JULY 1 1991 TO JUNE 30 1992 THROUGH DEC 31 1992 TO MAKE ITS FISCAL YEAR COINCIDE WITH THAT OF PIRELLI SPA 9304050108 930405 BUSINESS BRIEF GTE CORP UNIT GETS PRELIMINARY OFFERS TO TRADE BUY ACCESS LINES GTE CORP SAID ITS GTE TELEPHONE OPERATIONS RECEIVED PRELIMINARY OFFERS FROM OTHER COMPANIES TO TRADE OR PURCHASE ITS 49000 ACCESS LINES IN EASTERN ARIZONA MONTANA AND UTAH THE STAMFORD CONN COMPANY DIDN'T DISCLOSE THE TERMS GTE SAID THAT IN ADDITION IT IS DISCUSSING SIMILAR ARRANGEMENTS WITH COMPANIES THAT HAD PREVIOUSLY EXPRESSED AN INTEREST IN 90000 ACCESS LINES IN SEVERAL NEW ENGLAND STATES AND 12000 ACCESS LINES IN THE PANHANDLE OF OKLAHOMA GTE SAID THE MOVES ARE PART OF ITS PREVIOUSLY ANNOUNCED STRATEGY TO TRADE OR SELL LOCALEXCHANGE PROPERTIES TO STRENGTHEN THE COMPANY'S PRESENCE IN KEY MARKETS GTE DIDN'T DISCLOSE THE NAMES OF POTENTIAL BUYERS 9304050107 930405 FRENCH CAR REGISTRATIONS PARIS FRENCH CAR REGISTRATIONS FELL BY 9 IN MARCH FOLLOWING FEBRUARY'S 216 DROP ACCORDING TO STATISTICS RELEASED BY THE FRENCH AUTOMOBILE MANUFACTURERS' ASSOCIATION THE INDUSTRY GROUP SAID REGISTRATIONS IN MARCH TOTALED ABOUT 165400 UNITS OR 16360 LESS THAN IN FEBRUARY OVER THE FIRST THREE MONTHS OF THIS YEAR REGISTRATIONS WERE 225 BELOW THOSE OF THE SAME 1992 PERIOD AT 403700 THE INDUSTRY ASSOCIATION SAID REGISTRATIONS OF CARS MADE BY THE PSA PEUGEOT CITROEN SA GROUP DECLINED 109 IN MARCH COMPARED WITH A YEAR BEFORE WHILE THOSE OF RENAULT SA FELL 95 PEUGEOT ACCOUNTED FOR 29 OF THE FRENCH MARKET IN MARCH SLIGHTLY BELOW THE YEAREARLIER LEVEL OF 296 RENAULT'S MARKET SHARE ALSO CONTRACTED SLIGHTLY TO 307 FROM 309 IN MARCH 1992 IMPORTED CARS ACCOUNTED FOR 403 OF THE OVERALL MARCH TOTAL UP FROM 395 IN THE YEAREARLIER MONTH 9304050106 930405 POLITICS & POLICY CLINTON PICKS FRIEND AND TWO OFFICIALS FROM CARTER TERM FOR TOP JUSTICE POSTS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MOVING TO FILL THE VOID IN POLITICAL APPOINTEES AT THE JUSTICE DEPARTMENT PRESIDENT CLINTON NOMINATED TWO FORMER AGENCY OFFICIALS AND A FAMILY FRIEND AS TOP DEPARTMENT AIDES PHILIP HEYMAN 60 YEARS OLD A HARVARD LAW PROFESSOR WHO LED THE DEPARTMENT'S CRIMINAL DIVISION UNDER PRESIDENT CARTER WAS CHOSEN TO BE DEPUTY ATTORNEY GENERAL WEBSTER HUBBELL 43 A FORMER MAYOR OF LITTLE ROCK ARK AND ARKANSAS SUPREME COURT JUSTICE WAS PICKED TO BE ASSOCIATE ATTORNEY GENERAL DREW DAYS 51 A YALE LAW SCHOOL PROFESSOR WHO WAS ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS IN THE CARTER ADMINISTRATION WAS NOMINATED TO BE SOLICITOR GENERAL ALL THREE NOMINATIONS REQUIRE SENATE CONFIRMATION IN ADDITION ATTORNEY GENERAL JANET RENO SAID CARL STERN 55 THE LONGTIME LAW CORRESPONDENT FOR NBC NEWS WILL HEAD HER PUBLIC AFFAIRS OFFICE THE THREE PRESIDENTIAL APPOINTMENTS REFLECT THE INFLUENCE OF THE WHITE HOUSE AT THE JUSTICE DEPARTMENT MORE THAN MS RENO'S PERSONAL TOUCH ADMINISTRATION OFFICIALS SAID SHE HAD VETO POWER OVER THE SELECTIONS MR HUBBELL IS CLOSE TO THE FIRST FAMILY HE PLAYS GOLF WITH MR CLINTON WAS MRS CLINTON'S LAW PARTNER IN LITTLE ROCK AND WAS APPOINTED BY THENGOV CLINTON TO THE ARKANSAS HIGH COURT SENATE CONFIRMATION HEARINGS FOR THE THREE MEN ARE AT LEAST THREE WEEKS AWAY MR HUBBELL WHOM PRESIDENT CLINTON HAD NAMED ASSISTANT TO THE ATTORNEY GENERAL ALMOST TWO MONTHS BEFORE MS RENO TOOK OFFICE PREDICTED HE WOULD HAVE A TOUGH TIME WITH SOME MEMBERS OF THE SENATE JUDICIARY COMMITTEE MR HUBBELL IS LIKELY TO BE CLOSELY QUESTIONED ABOUT HIS ROLE IN MS RENO'S REQUEST FOR REPUBLICANAPPOINTED US ATTORNEYS TO RESIGN DURING A MARCH 22 MEETING ACCORDING TO JUSTICE DEPARTMENT OFFICIALS FAMILIAR WITH THE DISMISSAL PROCESS MR HUBBELL INDICATED HE WANTED THE RESIGNATIONS EFFECTIVE BY THE END OF LAST WEEK HE ALSO REVIEWED A LIST OF ALL THE TOP OFFICIALS IN THE US ATTORNEY OFFICES AROUND THE COUNTRY TO DETERMINE WHO WOULD BE THE INTERIM REPLACEMENTS MR HUBBELL HAS DENIED THERE WAS ANY DEADLINE FOR THE RESIGNATIONS AND NOTED THAT ONLY ABOUT 10 OF THE 77 REQUESTED RESIGNATIONS HAVE SO FAR BEEN ACCEPTED THE PROOF IS IN THE PUDDING HE SAID HE DID SAY THAT HE EXPECTS THE TURNOVER TO BE COMPLETE BETWEEN MIDAPRIL AND LATE APRIL ONE FORMER US ATTORNEY WHO SAID HE WAS TOLD TO LEAVE BY FRIDAY AND DID SO IS JAY STEPHENS IN THE DISTRICT OF COLUMBIA MR STEPHENS'S CASE DREW PARTICULAR ATTENTION BECAUSE HE SAID HE WAS CLOSE TO A CRITICAL DECISION IN RESOLVING THE CORRUPTION PROBE OF REP DAN ROSTENKOWSKI D ILL THE CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE IS AN IMPORTANT PLAYER IN PRESIDENT CLINTON'S EFFORT TO MOVE AN ECONOMIC PACKAGE THROUGH CONGRESS ON FRIDAY HOUSE OFFICIALS INDICATED THAT A FEDERAL GRAND JURY HAS SUBPOENAED FINANCIAL RECORDS OF MR ROSTENKOWSKI'S COMMITTEE DURING HIS PERIOD AS CHAIRMAN THIS FIRSTTIME REQUEST FOR COMMITTEE DOCUMENTS INDICATES THE INVESTIGATION APPARENTLY WON'T SLOW WITHOUT MR STEPHENS ON MARCH 23 HE INDICATED THE CRITICAL DECISION WOULD COME BY APRIL 22 IN AN INTERVIEW LAST WEEK HE SAID ELEMENTS BEYOND THE CONTROL OF HIS OFFICE COULD EXTEND THAT ANOTHER TWO TO FOUR WEEKS SOME CLOSE TO MR STEPHENS SPECULATED THAT MS RENO WOULD APPOINT H MARSHALL JARRETT WHO IS DIRECTING THE ROSTENKOWSKI INVESTIGATION AS THE INTERIM REPLACEMENT INSTEAD SHE CHOSE RAMSEY JOHNSON 47 WHO WAS CHIEF OF SUPERIOR COURT OPERATIONS IN THE OFFICE THE 17YEAR VETERAN WITH THE JUSTICE DEPARTMENT HASN'T BEEN INVOLVED WITH THE PROBE MR HUBBELL WILL ALSO BE QUESTIONED ABOUT ACTING ATTORNEY GENERAL STUART GERSON'S UNSUCCESSFUL ATTEMPT TO UNSEAT A MOSTLY WHITE JURY IN THE CORRUPTION TRIAL OF REP HAROLD FORD D TENN MR HUBBELL ARRANGED A MEETING BETWEEN THE CONGRESSIONAL BLACK CAUCUS OF WHICH MR FORD IS A MEMBER AND MR GERSON TO DISCUSS THE FORD CASE BECAUSE OF HIS CLOSENESS TO THE FIRST FAMILY AND HIS AVOIDANCE OF THE PRESS UNTIL RECENTLY THERE HAS BEEN MUCH SPECULATION ABOUT THE ROLE HE HAS PLAYEDAND THE ONE HE WILL PLAYIN THE DEPARTMENT CALLING MR HUBBELL ONE OF THE GREAT MEN IN AMERICA MS RENO SAID HE HAS BEEN THE UNSUNG HERO OF THIS DEPARTMENT OVER THESE LAST TWO MONTHS MR HEYMAN WORKED ON PRESIDENT CLINTON'S TRANSITION TEAM HE SAID HE MET MS RENO IN PERSON ONLY ONCE BEFORE WHEN HE WAS IN THE CARTER ADMINISTRATION MS RENO NOTED THAT MR HEYMAN'S SON IS AN ASSISTANT US ATTORNEY IN BOSTON MS RENO SAID SHE MET MR DAYS ONLY RECENTLY BUT HAS LONG RESPECTED HIS WORK IT SEEMS TO ME FOR MOST OF MY PROFESSIONAL LIFE I HAVE BEEN HEARING ABOUT DREW DAYS AND THE WONDERFUL THINGS THAT HE HAS DONE TO SEEK JUSTICE FOR ALL AMERICANS SHE TOLD DEPARTMENT EMPLOYEES AS SHE INTRODUCED THE NOMINEES 9304050105 930405 US COURT REINSTATES SUITS AGAINST AMES WERTHEIM SCHRODER NEW YORK A FEDERAL APPEALS COURT REINSTATED STOCKHOLDER AND BONDHOLDER LAWSUITS AGAINST AMES DEPARTMENT STORES INC AND THE INVESTMENT BANKING FIRM WERTHEIM SCHRODER & CO FOR THE FAILED 1988 TAKEOVER OF THE ZAYRE DISCOUNT STORE CHAIN IN TWO OPINIONS THE SECOND US CIRCUIT COURT OF APPEALS RULED THAT A DISTRICT COURT JUDGE IN CONNECTICUT ERRED WHEN HE DISMISSED A LAWSUIT ON BEHALF OF INVESTORS WHO BOUGHT AMES STOCK BETWEEN MAY 10 1989 AND APRIL 10 1990 AND A SECOND SUIT BY HOLDERS OF AMES SENIOR SUBORDINATED RESET NOTES THE APPEALS COURT SAID THE PLAINTIFFS SHOULD HAVE A CHANCE TO SHOW THAT AMES SOME OF ITS OFFICERS AND THE INVESTMENT BANKING FIRM COMMITTED FRAUD BY OVERSTATING THE FINANCIAL PROSPECTS OF THE ZAYRE TAKEOVER AMES WERTHEIM SCHRODER AND THE OFFICERS HAVE DENIED THE CHARGES COOPERS & LYBRAND THE ACCOUNTING FIRM AND TJX COS INC ZAYRE'S SUCCESSOR ARE ALSO DEFENDANTS IN THE BONDHOLDER SUIT THEY ALSO HAVE DENIED THE ALLEGATIONS OVERBURDENED BY DEBT AND LOSSES AS A RESULT OF THE TAKEOVER AMES OF ROCKY HILL CONN FILED FOR BANKRUPTCYCOURT PROTECTION ON APRIL 25 1990 IT EMERGED FROM BANKRUPTCY IN DECEMBER 9304050104 930405 JAPANESE VEHICLE SALES ROSE TOKYO JAPAN'S SALES OF NEW CARS TRUCKS AND BUSES AS MEASURED BY REGISTRATIONS ROSE 17 IN MARCH FROM A YEAR EARLIER TO 706094 UNITS THE FIRST YEARTOYEAR GAIN IN NINE MONTHS THE JAPAN AUTOMOBILE DEALERS' ASSOCIATION SAID 9304050103 930405 SPRINT'S MERGER COSTS WON'T CAST A SHADOW OVER RATINGS BY S&P NEW YORK STANDARD & POOR'S CORP SAID SPRINT CORP'S CREDIT QUALITY WILL NOT BE AFFECTED BY ITS DECISION TO BOOK 550 MILLION TO 575 MILLION IN AFTERTAX NONRECURRING CHARGES IN THE FIRST QUARTER THE CHARGES RELATE PRIMARILY TO ACCOUNTING CHANGES AND ONETIME COSTS INCURRED IN THE RECENT MERGER OF CENTEL CORP INTO SPRINT SPRINT'S CURRENT RATINGS ARE TRIPLEBMINUS FOR SENIOR DEBT DOUBLEBPLUS FOR SUBORDINATED DEBT AND PREFERRED STOCK AND A3 FOR COMMERCIAL PAPER THE RATINGS CONCERN SAID ABOUT 5 BILLION OF LONGTERM DEBT IS OUTSTANDING S&P SAID THE BULK OF THE FIRSTQUARTER CHARGES TOTALING ABOUT 340 MILLION RESULT FROM SPRINT'S ADOPTION OF ACCOUNTING CHANGES FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS MOST OF THIS NEWLY RECOGNIZED LIABILITY STEMS FROM LOCAL TELEPHONE COMPANY OPERATIONS AND S&P SAID SPRINT'S LOCAL TELEPHONE UNITS LIKELY WILL BE ABLE TO RECOVER MUCH OF THE BENEFIT LIABILITY THROUGH RATE ADJUSTMENTS FOR EXAMPLE THE LARGEST TELEPHONE UNIT UNITED TELEPHONE CO OF FLORIDA HAS RECEIVED REGULATORY APPROVAL TO USE RATES TO RECOVER THE HIGHER COSTS RESULTING FROM THE ACCOUNTING CHANGES 9304050102 930405 APPLIED BIOSCIENCE BUYBACK ARLINGTON VA APPLIED BIOSCIENCE INTERNATIONAL INC SAID ITS BOARD APPROVED AN INCREASE IN ITS SHAREBUYBACK PROGRAM TO A MAXIMUM OF TWO MILLION SHARES FROM ONE MILLION THE PROVIDER OF TOXICOLOGICAL TESTING SERVICES SAID THAT 675000 SHARES HAVE BEEN REPURCHASED UNDER THE PROGRAM TO DATE APPLIED BIOSCIENCE ALSO SAID IT IS CONSIDERING SEEKING FURTHER OUTSIDE FINANCING FOR THE INCREASED REPURCHASE PROGRAM 9304050101 930405 MARRIOTT REJECTS DEMANDS BY PREFERREDSTOCK GROUP WASHINGTON MARRIOTT CORP SAID IT REJECTED DEMANDS BY A GROUP OF PREFERREDSTOCK HOLDERS WHO OPPOSE THE COMPANY'S PLAN TO SPLIT INTO A HOTEL MANAGEMENT ARM AND A REAL ESTATE COMPANY THE GROUP WHICH INCLUDES HARVARD COLLEGE UNION BANK OF SWITZERLAND AND ITS UBS SECURITIES INC UNIT WANTS MARRIOTT TO CHANGE ITS PLAN WHICH RECENTLY WAS REVISED TO MOLLIFY A GROUP OF BONDHOLDERS TO TREAT PREFERRED STOCKHOLDERS MORE FAVORABLY THE GROUP SAID IT MAY SUE AND SEEK COMPENSATION IF THE PLAN ISN'T CHANGED STEPHEN F BOLLENBACH MARRIOTT'S CHIEF FINANCIAL OFFICER SAID THE GROUP WAS SIMPLY TRYING A 1980SSTYLE GREENMAIL AND SAID MARRIOTT SEES NO MERIT IN THE CLAIMS MARRIOTT SAID THAT MEMBERS OF THE GROUP APPARENTLY BOUGHT THE PREFERRED SHARES AND SIMULTANEOUSLY SOLD SHORT MARRIOTT'S COMMON SHARES SHORT SELLERS BORROW STOCK TO SELL BETTING IT WILL FALL AND HOPE TO PROFIT BY REPLACING IT LATER AT A LOWER PRICE ATTORNEYS FOR THE PREFERRED SHAREHOLDERS COULDN'T BE REACHED FOR COMMENT 9304050100 930405 BUSINESS BRIEF SMITH INTERNATIONAL INC GAIN OF 75 MILLION OR MORE TIED TO HALLIBURTON SHARES SMITH INTERNATIONAL INC HOUSTON SAID THE SALE OF HALLIBURTON CO COMMON SHARES RECEIVED FOR THE SALE OF ITS DIRECTIONAL DRILLING BUSINESS WILL RESULT IN A NET GAIN OF ABOUT 75 MILLION TO 90 MILLION SMITH AN OIL SERVICE COMPANY SAID THE APPROXIMATELY 68 MILLION HALLIBURTON SHARES WERE PRICED AT 36125 EACH RESULTING IN TOTAL CASH PROCEEDS OF 2477 MILLION FIRST BOSTON CORP IS MANAGING THE SALE THE COMPANY WILL RECORD A FIRSTQUARTER GAIN OF ABOUT 2 TO 240 A SHARE FROM THE SALE SAID A SPOKESMAN IN 1992'S FIRST QUARTER SMITH EARNED 25 MILLION OR SIX CENTS A SHARE ON 933 MILLION IN REVENUE 9304050099 930405 TWO GROUPS PUBLISH DIRECTORIES FOR FUNDS NEW YORK IDENTIFYING A TOPNOTCH MUTUAL FUND IS TRICKY ENOUGH BUT THEN COMES THE REALLY TOUGH PART FINDING THE FUND'S TELEPHONE NUMBER ADDRESS AND OTHER DETAILS TO HELP INVESTORS TWO NEW MUTUAL FUND DIRECTORIES HAVE JUST BEEN PUBLISHED EACH OF WHICH COSTS 5 THE INVESTMENT COMPANY INSTITUTE THE TRADE GROUP FOR THE MUTUAL FUND INDUSTRY HAS JUST PUT OUT ITS 199394 DIRECTORY OF MUTUAL FUNDS WHICH LISTS ADDRESSES TELEPHONE NUMBERS AND INVESTMENT MINIMUMS FOR MORE THAN 3700 MUTUAL FUNDS A SIMILAR DIRECTORY HAS JUST BEEN PUT OUT BY THE MUTUAL FUND EDUCATION ALLIANCE AN ORGANIZATION SPONSORED BY MUTUAL FUND COMPANIES THAT SELL FUNDS THAT CHARGE LITTLE OR NOTHING IN THE WAY OF FUND SALES COMMISSIONS THE ALLIANCE'S INVESTOR'S GUIDE TO LOWCOST MUTUAL FUNDS COVERS FEWER FUNDS THAN DOES THE INSTITUTE'S DIRECTORY BUT THE ALLIANCE'S GUIDE DOES INCLUDE INFORMATION ON FUND PERFORMANCE AND FUND ANNUAL EXPENSES A COPY OF THE ALLIANCE'S GUIDE CAN BE BOUGHT BY SENDING A 5 CHECK OR MONEY ORDER TO MUTUAL FUND EDUCATION ALLIANCE 1900 ERIE STREET SUITE 120 KANSAS CITY MO 64116 9304050098 930405 INTERNATIONAL MEXICAN INDUSTRIALIST ROLLS UP HIS SLEEVES TO WIN TV STATIONS CAN A FIESTY LAUNDERER'S SON WITH A LITTLE NETWORKING FIND FAME IN THE BIG TIME BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL GUADALAJARA MEXICO IT TAKES WEEKS OF NEGOTIATIONS TO ARRANGE AN APPOINTMENT WITH RAYMUNDO GOMEZ FLORES AND WHEN MEXICO'S HOT NEW INDUSTRIALIST FINALLY DOES HAVE AN OPENING IT'S AT 9 AM ON A SATURDAY WE'VE BEEN VERY BUSY LATELY THE SWEATSUITCLAD MR GOMEZ SAYS APOLOGETICALLY BUSY INDEED IN JUST A FEW YEARS THIS LAUNDERER'S SON HAS BUILT AN EMPIRE WITH 18 BILLION IN ANNUAL REVENUE AND INTERESTS RANGING FROM TRUCKS TO BANKS TO REAL ESTATE HE SPECIALIZES IN BUYING UNDERPERFORMING COMPANIES FROM THE GOVERNMENT AND TRANSFORMING THEM INTO MONEYMAKERS LAST WEEK MARKED A KIND OF COMING OUT PARTY FOR THE LITTLEKNOWN GUADALAJARAN ON WEDNESDAY HIS TRUCK MAKER CONSORCIO G GRUPO DINA SA LAUNCHED A 230 PUBLIC STOCK OFFERING THE NEXT DAY HE TEAMED UP WITH CAPITAL CITIES/ABC INC AND PARAMOUNT COMMUNICATIONS INC TO ANNOUNCE A PLANNED BID FOR A PACKAGE OF MEXICAN GOVERNMENTOWNED MEDIA COMPANIES INCLUDING TWO TELEVISION NETWORKS TWO OF THE COMPETING BIDDING GROUPS ARE LED BY A PAIR OF WELLESTABLISHED MEXICAN INDUSTRIALISTS ADRIAN SADA AND RICARDO SALINAS BUT NEITHER HAS BEEN ABLE TO LINE UP PARTNERS WITH THE INTERNATIONAL STATURE OF MR GOMEZ'S RUBBING SHOULDERS WITH THE BUSINESS ELITE IS A NEW EXPERIENCE FOR MR GOMEZ WHO HAS SPENT MOST OF HIS 40ODD YEARS IN GUADALAJARA A PROVINCIAL CITY KNOWN MORE FOR MARIACHI MUSICIANS AND COWBOYS THAN FOR DEALMAKERS THE COUNTRY IS CHANGING AND SO IS THE BUSINESS CLASS HE SAYS WHILE MANY OF LOS NUEVOS RICOS OR THE NEW RICH GOT THAT WAY BY INVESTING IN THE MEXICAN STOCK MARKET MR GOMEZ OWES HIS NEWFOUND PROMINENCE TO THE GOVERNMENT'S PUSH TO PRIVATIZE STATEOWNED COMPANIES REDUCING THE GOVERNMENT'S ROLE IN THE ECONOMY HAS OPENED UP ROOM FOR ENTREPRENEURS LIKE RAYMUNDO A HARDWORKING GUY WHO ALWAYS HAS HIS TIE LOOSENED SAYS JORGE MARTINEZ GUITRON CHAIRMAN OF GRUPO SIDEK A GUADALAJARAN STEEL AND TOURISM COMPANY MR GOMEZ'S FATHER STARTED HIS CAREER DOING THE LAUNDRY IN A HOTEL OWNED BY THE MARTINEZ GUITRON FAMILY AND THEN BUILT UP A LARGE INSTITUTIONAL LAUNDRY BUSINESS WHEN HE DIED IN THE LATE 1960S THE YOUNGER MR GOMEZ QUIT COLLEGE AND TENDED TO THE BUSINESSES LEFT TO HIM AND HIS SEVEN BROTHERS AND SISTERS HE THEN FOUND A NICHE IN REAL ESTATE PUTTING UP LOWINCOME HOUSES FASTER THAN ANYONE ELSE AND SELLING THEM FOR LESS THE GOMEZ FAMILY THEN BRANCHED INTO COMMERCIAL AND LUXURY DEVELOPMENTS AND BY SOME ESTIMATES NOW OWNS 4 OF URBAN GUADALAJARA REAL ESTATE WAS MR GOMEZ'S MAIN FOCUS UNTIL ABOUT FIVE YEARS AGO WHEN THE MEXICAN GOVERNMENT BEGAN DIVESTING THE 1100 BUSINESSES IT HAD ACQUIRED DURING THE PRECEDING DECADE OF POPULISM HIS FIRST BIG TARGET WAS THE STATE TRUCK MAKER DIESEL NACIONAL OR DINA IN STALKING HIS PREY MR GOMEZ SHOWED A SINGLEMINDEDNESS THAT HAS BECOME HIS TRADEMARK HEARING A RUMOR THAT CHRYSLER CORP CHAIRMAN LEE IACOCCA WAS VISITING MEXICO CITY TO MAKE A BID FOR DINA MR GOMEZ FLEW TO THE CAPITAL PUSHED HIS WAY PAST CHRYSLER BODYGUARDS AND INSISTED THAT MR IACOCCA LET HIM IN ON THE DEAL IT TURNED OUT CHRYSLER NEVER WAS A PLAYER THE UPSTART GUADALAJARAN ALSO HAD TO LOOK HIGH AND LOW FOR FINANCING FOR HIS DINA BID HE FINALLY FOUND SUPPORT AT UNION BANK OF SWITZERLAND WHICH AGREED TO GIVE HIM A 159 MILLION CREDIT PAYABLE OVER 15 YEARS FOR THE PURCHASE AND UPGRADING OF DINA MR GOMEZ PUT UP ONLY 30 MILLION OF HIS OWN MONEY SINCE HE BOUGHT DINA IN 1989 THE TRUCK MAKER HAS MADE ENOUGH MONEY TO ENABLE MR GOMEZ TO PAY OFF HIS BANK LOAN IN JUST THREE YEARS EAGER FOR NEW DEALS MR GOMEZ BEGAN STUDYING STATECONTROLLED COMMERCIAL BANKS IN 1988 EVEN THOUGH THE GOVERNMENT INSISTED IT WOULDN'T PART WITH THEM BY THE TIME THE GOVERNMENT FINALLY DID ANNOUNCE A PLAN TO DIVEST THE BANKS IN 1990 MR GOMEZ HAD ASSEMBLED A LARGE INVESTMENT GROUP TO BUY BANCA CREMI A LARGE REGIONAL BANKING CONCERN THE PURCHASE OF THE TV NETWORKS WOULD BE MR GOMEZ'S BIGGEST DEAL BY FAR NOT ONLY DOES HE HAVE PRESTIGIOUS MINORITY PARTNERS BUT AFTER LAST WEEK'S DINA OFFERING HE HAS A SUBSTANTIAL WAR CHEST ABOUT 90 MILLION OF THE OFFERING'S PROCEEDS WILL GO TO MR GOMEZ'S FAMILY SAY PEOPLE FAMILIAR WITH THE TRANSACTION NEVERTHELESS THE BIDDERS OPPOSING MR GOMEZ SAY CASH AND FOREIGN CONNECTIONS DON'T IN THEMSELVES MAKE MR GOMEZ QUALIFIED TO RUN THE NETWORKS THEY SAY HE HAS NO MEDIA EXPERIENCE OF THE KIND NEEDED TO COMPETE AGAINST MIGHTY GRUPO TELEVISA WHICH NOW HAS 95 OF MEXICO'S TELEVISION VIEWERS MR GOMEZ COUNTERS THAT HE DOES HAVE EXPERIENCE TURNING AROUND INEFFICIENT PUBLIC COMPANIES AND HE SAYS THERE IS ROOM FOR TWO NETWORKS IN MEXICO HE NOTES THAT ONLY ABOUT 25 COMPANIES ACCOUNT FOR 80 OF TELEVISA'S PRIMETIME ADVERTISING THERE ARE MANY IMPORTANT BUT UNDEREXPOSED BUSINESSES MR GOMEZ SAYS THAT WANT AN ADVERTISING OPTION TO HELP THEM BREAK INTO THE BIG LEAGUES JUST AS A LITTLE COMPANY IN GUADALAJARA HAS DONE 9304050096 930405 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT BHC FINANCIAL INITIAL 21 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES CINCINNATI MILACRON INC 45 MILLION COMMON SHARES VIA FIRST BOSTON CORP CROSSCOMM CORP 15 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP DOMTAR INC 175 MILLION OF NOTES VIA KIDDER PEABODY & CO EATON VANCE CORP 11 MILLION COMMON SHARES VIA MERRILL LYNCH & CO FEDERAL REALTY INVESTMENT TRUST25 MILLION COMMON SHARES VIA MERRILL LYNCH FOSSIL INC INITIAL 18 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES GENERAL GROWTH PROPERTIES INC 125 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO GEON CO INITIAL 13 MILLION COMMON SHARES VIA GOLDMAN SACHS INTERACTIVE NETWORK INC 25 MILLION COMMON SHARES VIA PAINEWEBBER INC KIMCO REALTY CORP 25 MILLION COMMON SHARES VIA MERRILL LYNCH LIBERTY TECHNOLOGIES INC INITIAL 18 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO PENN TRAFFIC CO 28 MILLION COMMON SHARES VIA GOLDMAN SACHS PENN TRAFFIC CO 400 MILLION OF SENIOR SUBORDINATED NOTES VIA GOLDMAN SACHS QUANTUM CHEMICAL CORP 250 MILLION OF FIRST MORTGAGE NOTES VIA DILLON READ & CO SANMINA HOLDINGS INC INITIAL 2950000 COMMON SHARES VIA MONTGOMERY SECURITIES STARTER CORP INITIAL 7750000 COMMON SHARES VIA MERRILL LYNCH TRIDENT NGL INC 105 MILLION OF SUBORDINATED NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP UNITEL VIDEO INC 1250000 COMMON SHARES VIA LEGG MASON WOOD WALKER INC WHEELINGPITTSBURGH CORP 10 MILLION COMMON SHARES VIA SALOMON BROTHERS GUILFORD COUNTY NC 567 MILLION OF VARIOUS SERIES 1993 BONDS VIA COMPETITIVE BID LAS VEGAS VALLEY WATER DISTRICT NEV 519 MILLION OF WATER REFUNDING BONDS VIA COMPETITIVE BID MINNESOTA 3346 MILLION OF REFUNDING GENERAL OBLIGATION BONDS VIA COMPETITIVE BID FULTON COUNTY GA 75 MILLION OF GENERAL FUND TAXANTICIPATION NOTES VIA COMPETITIVE BID MILWAUKEE WIS 549 MILLION OF BONDS VIA COMPETITIVE BID ERIE COUNTY NY 56 MILLION OF REFUNDING BONDS VIA A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP INSURED BY THE FINANCIAL GUARANTY INSURANCE CO FRANKLIN COUNTY OHIO 145 MILLION OF BONDS VIA FIRST BOSTON CORP HOLLYWOOD FLA 125 MILLION OF WATER & SEWER REVENUE BONDS VIA FIRST BOSTON CORP PALM BEACH HEALTH AUTHORITY 80 MILLION OF BONDS VIA FIRST BOSTON TRIBOROUGH BRIDGE & TUNNEL AUTHORITY NEW YORK CITY 88 MILLION OF BENEFICIAL INTEREST CERTIFICATES VIA ARTEMIS CAPITAL GROUP INC INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP WASHINGTON HEALTH CARE FACILITIES AUTHORITY 107 MILLION OF REVENUE BONDS VIA A JOHN NUVEEN & CO INC GROUP 9304050095 930405 QUARTERLY MUTUAL FUNDS REVIEW CLOSEDEND FUND OFFERINGS NEW YORK NEW OFFERINGS OF PUBLICLY TRADED MUNICIPAL BOND FUNDS IN THE FIRST QUARTER DROPPED FROM A YEAR AGO BUT SALES OF PUBLICLY TRADED TAXABLE BOND FUNDS SURGED LESS THAN 25 BILLION OF PUBLICLY TRADED MUNICIPAL BOND FUNDS WERE SOLD IN THE QUARTER COMPARED WITH MORE THAN 3 BILLION IN THE 1992 FIRST QUARTER BUT SALES OF PUBLICLY TRADED TAXABLE BOND FUNDS JUMPED TO 17 BILLION FROM LESS THAN 1 BILLION UNLIKE A REGULAR MUTUAL FUND PUBLICLY TRADED FUNDS SELL A FIXED NUMBER OF SHARES IN AN INITIAL PUBLIC OFFERING FOLLOWING THE IPO THE FUNDS ARE LISTED ON A STOCK EXCHANGE PUBLICLY TRADED FUNDS ARE ALSO KNOWN AS CLOSEDEND FUNDS OR EXCHANGETRADED FUNDS OVERALL PUBLICLY TRADED FUNDS VALUED AT JUST UNDER 43 BILLION WERE SOLD IN THE FIRST QUARTER ACCORDING TO LIPPER ANALYTICAL SERVICES A SUMMIT NJ FUND RESEARCH FIRM THAT WAS MODESTLY BELOW THE SALES PACE IN THE 1992 QUARTER WHEN A BIT OVER 43 BILLION OF PUBLICLY TRADED FUNDS WERE SOLD 9304050094 930405 MARKETING & MEDIA US PROBES ALLEGED FINANCIAL MISDEEDS BY TWO OFFICERS OF HOME SHOPPING BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HOME SHOPPING NETWORK INC IS BEING ROCKED BY ALLEGATIONS THAT ONE PRESENT AND ONE FORMER TOP OFFICER PROFITED FROM SECRET TIES TO COMPANY VENDORS AND LATER PAID 12 MILLION IN STOCK TO A THIRD EXECUTIVE WHO WAS THREATENING TO EXPOSE THEM THE ACCUSATIONS NOW THE SUBJECT OF A FEDERAL GRAND JURY INVESTIGATION CONCERN ROY SPEER CHAIRMAN OF THE CLEARWATER FLABASED COMPANY AND LOWELL PAXSON ITS FORMER PRESIDENT THE ALLEGATIONS SURFACED THIS YEAR IN A MIAMI DIVORCE SUIT INVOLVING THE THIRD EXECUTIVE EXGENERAL COUNSEL FERNANDO DIFILIPPO LAST WEEK THE ACCUSATIONS WERE ECHOED IN A LAWSUIT FILED AGAINST THE COMPANY AND OTHERS BY MR DEFILIPPO'S SUCCESSOR ALLEN P ALLWEISS THE SUIT FILED IN STATE COURT IN PINELLAS COUNTY FLA ALSO ALLEGED THAT AN ADVISER TO THE COMPANY AND MR SPEER IS A MEMBER OF THE GAMBINO MAFIA FAMILY CAUGHT IN THE CONTROVERSY TOO IS LIBERTY MEDIA INC THE CABLE PROGRAMMING SPINOFF OF CABLETELEVISION GIANT TELECOMMUNICATIONS INC MR SPEER SOLD LIBERTY CONTROL OF HOME SHOPPING FOR 160 MILLION IN CASH AND STOCK IN A SWIFTLY COMPLETED TRANSACTION IN DECEMBER JUST WEEKS BEFORE THE ACCUSATIONS SURFACED ON FRIDAY A LIBERTY SPOKESMAN CONFIRMED THAT A SPECIAL COMMITTEE OF HOME SHOPPING'S BOARD IS INVESTIGATING THE CHARGES OF FINANCIAL IMPROPRIETY THE BOMBSHELL OF CHARGES FIRST REPORTED BY THE ST PETERSBURG TIMES WERE LEVIED BY WANDA DIFILIPPO WIFE OF THE EXGENERAL COUNSEL IN THEIR DIVORCE PROCEEDINGS SHE ALLEGED THAT MESSRS SPEER AND PAXSON DIPPED INTO THEIR PERSONAL HOLDINGS IN 1990 TO PAY HER HUSBAND 12 MILLION IN HOME SHOPPING STOCKMONEY SHE ARGUED THAT SHOULD BE PART OF MARITAL PROPERTY AFTER HE PREPARED A LAWSUIT ACCUSING THEM OF FINANCIAL MISDEEDS MR DEFILIPPO RESIGNED LATER IN 1990 AND NO SUIT WAS EVER FILED MRS DIFILLIPO BASED HER ALLEGATIONS IN PART AT LEAST ON CONFIDENTIAL DOCUMENTS BELONGING TO MR DIFILIPPO THAT SHE PUT INTO THE DIVORCE PROCEEDING BUT THE JUDGE IN THE CASE SEALED THEM SO THEIR CONTENTS HAVEN'T BEEN REVEALED IN A HEARING LAST WEEK THE JUDGE DISCLOSED THAT A FEDERAL GRAND JURY IN TAMPA HAD SUBPOENAED THE PAPERS THE FIRST OFFICIAL CONFIRMATION OF INVESTIGATORS' INTEREST IN HOME SHOPPING A COURT OFFICIAL SAID THE COURT WOULD LIKELY HOLD ONTO THE DOCUMENTS UNTIL THE DIVORCE CASE ENDS MR DIFILIPPO SAID OVER THE WEEKEND THAT HE AND HIS WIFE REACHED AN OUTOFCOURT SETTLEMENT LATE FRIDAY A SPOKESWOMAN FOR THE US ATTORNEY IN TAMPA DECLINED TO CONFIRM OR DENY A GRAND JURY PROBE ON FRIDAY MR SPEER IS ON VACATION FOR SEVERAL WEEKS SAID HIS SECRETARY AND COFOUNDER MR PAXSON DIDN'T RESPOND TO MESSAGES THE TWO HOWEVER HAVE DENIED IN PUBLISHED REPORTS THE ACCUSATIONS THAT THEY BOUGHT MR DIFILIPPO'S SILENCE ALL ALONG THEY AND MR DIFILIPPO HAVE MAINTAINED THAT THE SHARES WERE IN EXCHANGE FOR MR DIFILIPPO'S HAND IN BUILDING HOME SHOPPING AN EXPLANATION THE EXGENERAL COUNSEL REITERATED IN INTERVIEWS OVER THE WEEKEND THAT I HID IMPROPRIETIES IS PREPOSTEROUS MR DIFILLIPO SAID IT WAS FICTION BY MRS DIFILIPPO IN ORDER TO GET 50 OF MY PAYOUT I HELPED FOUND THAT COMPANY AND I WAS PROMISED THOSE SHARES MR DIFILIPPO VOLUNTEERED THAT HE HAD HAD A COMMERCIAL DISPUTE OVER THE SHARES WITH THE COFOUNDERS BUT THAT IT WAS SETTLED HE SAID THAT HE EXPECTS NOW TO BE CALLED TO TESTIFY THE SUIT BY MR ALLWEISS REPORTED BY THE ST PETERSBURG TIMES LAST FRIDAY ALLEGED THAT HE WAS FIRED AFTER HE ATTEMPTED TO ALERT LIBERTY TO ALLEGED FINANCIAL MISDEEDS AT HOME SHOPPING THAT HE CLAIMED HAD OCCURRED BEFORE LIBERTY ACQUIRED THE COMPANY IN ADDITION TO REPEATING THE CHARGE RAISED IN THE DIFILIPPO DIVORCE MR ALLWEISS ALSO ECHOED ALLEGATIONS FROM A RECENT SHAREHOLDER SUIT THAT HOME SHOPPING ILLEGALLY DIVERTED MONEY TO A CONCERN OWNED BY MR SPEER'S SON AMONG THE NEW ALLEGATIONS WAS ONE THAT FRANCIS SANTANGELO A LONGTIME ADVISER TO THE COMPANY AND MR SPEER WAS A MAFIA MEMBER IN AN INTERVIEW YESTERDAY MR SANTANGELO VIGOROUSLY DENIED THE ALLEGATION THE ONLY REASON FOR HIS BIGOTED CHARGE IS HIS HATRED FOR ME SAID MR SANTANGELO ADDING THAT HE HAD FOR THE LAST TWO YEARS TRIED TO GET MR ALLWEISS FIRED HE SAID MR ALLWEISS HAS A PERSONAL VENDETTA TO HURT ME BECAUSE MY NAME ENDS IN A VOWEL IN ADDITION TO MESSRS SPEER AND SANTANGELO AND HOME SHOPPING THE SUIT NAMES AS DEFENDANTS LIBERTY AND JOHN M DRAPER LIBERTY'S GENERAL COUNSEL MR ALLWEISS WHO HAS AN UNLISTED PHONE NUMBER COULDN'T BE REACHED FOR COMMENT AND HIS TAMPA ATTORNEY DIDN'T RESPOND TO A MESSAGE A LIBERTY SPOKESMAN ON FRIDAY SAID THE COMPANY FORMED A SPECIAL COMMITTEE TO INVESTIGATE ANY KIND OF RELATED PARTY TRANSACTIONS HE SAID THE COMMITTEE IS CONTINUING TO INVESTIGATE OTHER ALLEGATIONS ADDING WE'RE STILL OUTSIDERS FROM THE POINT OF KNOWING WHAT'S GOING ON HE SAID HOWEVER THAT LIBERTY HAD PERFORMED DUE DILIGENCE WITH HOME SHOPPING 9304050093 930405 COMMODITIES GOLD RALLY CONFOUNDS SKEPTICS AS SOME SENSE INFLATION BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD PRICES ARE FINALLY STARTING TO CATCH FIRE LAST WEEK GOLD CLIMBED ABOVE 340 AN OUNCE FOR THE FIRST TIME IN FIVE MONTHS CONFOUNDING AN ARMY OF SKEPTICS WHO RECENTLY HAD BEEN PREDICTING ITS IMMINENT SLIDE TO LEVELS BELOW 320 OR EVEN 300 IN THE FIRST HALF OF THIS YEAR IT WASN'T HARD TO UNDERSTAND THEIR GLOOM INFLATION HAD EBBED TO LONGTIME LOWS AND A COUPLE OF EUROPEAN CENTRAL BANKS HAD LET IT BE KNOWN THAT THEY WERE HEAVY SELLERS OF BULLION LAST YEAR BOTH FACTORS DEPRESSING THE MARKET BUT NOW INFLATION IS PICKING UP AT LEAST AT THE COMMODITYPRICE LEVEL AND CENTRAL BANKS SEEM TO BE SIDELINED ANALYSTS SAY THAT CLEARS THE WAY FOR GOLD A CLASSIC HEDGE AGAINST INFLATION TO RALLY ITS WAY OUT OF THE DOLDRUMS FRIDAY GOLD CLOSED AT 34230 ON THE ACTIVELY TRADED JUNE CONTRACT IN NEW YORK UP 2 ON THE DAY AND 8 ON THE WEEK JUNE GOLD HAD TRADED AS HIGH AS 34370 FRIDAY AS FRESH BUYING BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTMENT MONEY POWERED THE METAL HIGHER IN HEAVY VOLUME ON NEW YORK'S COMMODITY EXCHANGE THE WORLD'S BIGGEST PRECIOUSMETALS MARKET FRIDAY'S CLOSE IS ABOVE THE YEAREARLIER LEVEL OF 340 AN OUNCE BUT IS STILL BELOW LAST YEAR'S HIGH OF ABOUT 360 AN OUNCE GIVEN LAST WEEK'S SUSTAINED RALLY ANALYSTS NOW BELIEVE THAT GOLD HAS A SHOT AT HITTING AT LEAST 350 AN OUNCE AND PROBABLY HIGHER IN COMING MONTHS WE'VE MOVED FROM BEARISH TO NEUTRAL AND EVEN MILDLY CONSTRUCTIVE SAYS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH LONG AMONG THE MOST BEARISH BROKERAGE COMPANIES ON GOLD OF COURSE THERE REMAIN SOME SKEPTICS WHO BELIEVE GOLD IS STILL VULNERABLE TO ANOTHER DECLINE ESPECIALLY IF CENTRAL BANKS RESUME THEIR HEAVY SELLING OR IF THE DOLLAR REBOUNDS THE TRUE TEST WILL COME IF GOLD CAN CONTINUE TO ADVANCE IN THE FACE OF HIGHER US INTEREST RATES WHICH MAY TRIGGER A REBOUND IN THE DOLLAR SAYS SENIOR PAINEWEBBER METALS ANALYST BERNARD SAVAIKO IN MY VIEW GOLD WILL NOT BE ABLE TO STAND UP TO HIGHER INTEREST RATES VETERAN GOLD BULLS AREN'T SURPRISED BY THE METAL'S RECENT REBOUND THEY ARGUE THAT SUPPLY AND DEMAND FACTORS HAVE BEEN IMPROVING FOR MONTHS ALTHOUGH OCCASIONAL CENTRAL BANK GOLD SALES HAVE UPSET THE EQUATION THOSE SALES AT AN ESTIMATED 17 MILLION OUNCES LAST YEAR THE HIGHEST LEVEL SINCE 1979 APPEAR TO HAVE DRIED UP OR AT LEAST BEEN REDUCED TO A TRICKLE AT THE SAME TIME THE DOLLAR HAS BEEN WEAKENING SHARPLY AND STEADILY AGAINST THE YEN IN WHAT SEEMS TO BE A DELIBERATE GOVERNMENTTOGOVERNMENT POLICY AIMED AT REDUCING JAPAN'S CHRONIC TRADE SURPLUS WITH THE US HISTORICALLY GOLD TENDS TO MOVE IN THE OPPOSITE DIRECTION OF THE DOLLAR WORLDWIDE CONCERN ABOUT CURRENCY FLUCTUATIONS MAY BE PUSHING SOME INVESTORS TO GOLD INVESTORS IN THE UNITED STATES AND EUROPE SEEM TO BE TURNING TO GOLD BECAUSE OF THE CHAOS IN CURRENCIES SAYS JOE ROSTA RESEARCH DIRECTOR OF CPM GROUP PRECIOUS METALS CONSULTANTS IN NEW YORK BESIDES THE DOLLAR'S DECLINE AGAINST THE YEN HE CITED THE ITALIAN LIRA'S PERSISTENT SLIDE AGAINST THE MARK AND THE CONTINUING CONCERNS ABOUT THE FUTURE OF THE EUROPEAN EXCHANGE RATE MECHANISM THERE IS SOME SPECULATION AMONG TRADERS THAT THE BANK OF ITALY MAY BE PREPARING TO SELL SOME OF ITS GOLD RESERVES TO HELP DEFEND THE LIRA AND SHORE UP ITALY'S BUDGET DEFICIT HINTS OF INFLATION FILTERING THROUGH THE COMMODITIES MARKETS IS BOOSTING GOLD TOO THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS A LEADING BAROMETER OF INFLATION HAS JUMPED FROM LEVELS AROUND 198 EARLIER THIS YEAR TO NEARLY 215 LED HIGHER AT FIRST BY LIVESTOCK LUMBER AND OTHER AGRICULTURAL COMMODITIES AND NOW INCREASINGLY BY METAL AND ENERGY PRICES TRADERS SAY GOLD CAN BE EXPECTED TO MOVE HIGHER IN TANDEM WITH THE CRB INDEX PARTICULARLY IF THE CRB STAYS NEAR OR ABOVE THE IMPORTANT 215 LEVEL ON FRIDAY THE CRB INDEX CLOSED AT 21355 THE FAILURE OF THE CRB INDEX TO FALL BELOW 198 AND ITS SUBSEQUENT RALLY HAVE SUGGESTED TO SOME ANALYSTS THAT THE LONG SPELL OF DISINFLATION IN THE US ECONOMY MAY BE OVER AND THAT GOLD IS PRESAGING A MODERATE ACCELERATION OF INFLATION ANALYSTS ALSO NOTE THAT SELLING BY GOLD MINING COMPANIES WHICH IN THE RECENT PAST WOULD CUT SHORT GOLD RALLIES IS NOW BEING ABSORBED BY THE MARKET THEY SUGGEST THAT THE REAL TEST MAY PROVE TO BE HOW WELL THE GOLD FUTURES MARKET CAN HOLD UP AGAINST ANY REPEATED HEAVY ROUND OF PRODUCER SELLING BY MINING COMPANIES IN SOUTH AFRICA AND AUSTRALIA A LESS OBVIOUS SPUR TO GOLD IN RECENT WEEKS SOME TRADERS NOTE COMES FROM DECLINING GERMAN INTEREST RATES THE LOWER GERMAN RATES THEY SAY ARE MAKING GOLD MORE ATTRACTIVE IN EUROPE AS MARKDENOMINATED ASSETS BEGIN TO LOSE SOME OF THEIR LUSTER AS HIGHYIELDING AND STABLE INVESTMENTS MOST ANALYSTS AGREE THAT POLITICAL TENSIONS IN RUSSIA RECENTLY ALSO HAVE HELPED PROVIDE A FLOOR FOR GOLD ALTHOUGH THOSE TENSIONS MAY BE WANING NOW THE ANALYSTS SUGGEST THAT A RETURN TO STABILITY IN RUSSIA WON'T UNDERMINE THE MORE FUNDAMENTAL FACTORS DRIVING GOLD PRICES HIGHER AMONG THOSE UNDERLYING FACTORS IS INCREASING DEMAND FOR GOLD JEWELRY IN CHINA AND ELSEWHERE IN ASIA I'M BULLISH ON GOLD SAYS AC MOORE A PORTFOLIO MANAGER WITH ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF THE OVERALL SUPPLY AND DEMAND EQUATION IS VERY FAVORABLE FOR GOLD AND WE HAVE INCREASING POSITIONS IN GOLD MINING COMPANIES GOLD MINING STOCKS REFLECTING THE UNDERLYING DEMAND FOR THE METAL HAVE SURGED 20 SO FAR THIS YEAR MR MOORE SAYS CONSERVATIVE INVESTORS MIGHT WANT TO PUT AS MUCH AS 5 OF THEIR PORTFOLIOS IN GOLD SHARES WHICH TEND TO BE FAR MORE VOLATILE THAN THE BULLION ITSELF IT'S MUCH BETTER TO BUY GOLD SHARES BECAUSE YOU'RE BUYING AN EARNING ASSET HE EXPLAINS GOLD ITSELF DOESN'T EARN ANYTHING IT JUST GOES UP AND DOWN THE IMPORTANT THING FOR INVESTORS INTERESTED IN GOLD IS TO PICK A GOLD MINING COMPANY THAT CAN MAKE MONEY WHEN THE METAL IS ACTING ITS USUAL SLUGGISH SELF HE SAYS HIS PREMIER CHOICE FOR GOLD EQUITIES IS AMERICAN BARRICK RESOURCES CORP THEY HAVE GOOD EARNINGS GROWTH EVEN WITH A FLAT TO DECLINING PRICE OF GOLD HE SAYS ACCORDING TO CPM GROUP AMERICAN BARRICK HAS THE LOWEST OPERATING COST AMONG MAJOR NORTH AMERICAN GOLD MINING COMPANIES AT ROUGHLY 185 AN OUNCE FOLLOWED BY PLACER DOME AT 190 NEWMONT MINING AT 210 LAC MINERALS AT 235 AND HOMESTAKE AT 255 HARRY BINGHAM MANAGING DIRECTOR OF FUND MANAGERS VAN ECK ASSOCIATES AND PORTFOLIO MANAGER OF THE COMPANY'S LARGEST GOLD FUND SAYS THERE IS ABUNDANT ROOM FOR FURTHER RISES IN GOLD BULLION AND GOLD SHARES VAN ECK'S INTERNATIONAL INVESTORS FUND THE LARGEST GOLD MINING MUTUAL FUND IN THE NATION IS UP 33 SINCE THE BEGINNING OF THE YEAR THE ODDS FAVOR THAT WE'RE IN THE EARLY STAGES OF A BULL MARKET IT'S BEEN AN ORDERLY ADVANCE BASED ON FUNDAMENTAL PERCEPTIONS INCLUDING CONCERN ABOUT THE RISE IN THE CRB THERE ARE ALWAYS CORRECTIONS IN SUCH MARKETS HE CAUTIONS WE'VE HAD SOME ALREADY AND WE'RE PROBABLY GOING TO SEE SOME MORE LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK THE LUMBER MARKET WILL BE UNPREDICTABLE THIS WEEK AS TRADERS DIGEST NEWS FROM FRIDAY'S TIMBER SUMMIT IN PORTLAND ORE ON FRIDAY THE PRICE OF LUMBER FOR MAY DELIVERY CONTINUED TO SKID FALLING 250 TO 38650 PER THOUSAND BOARD FEET BUT THE PRICES OF THE JULY AND SEPTEMBER FUTURES CONTRACTS ROSE AT THE CHICAGO MERCANTILE EXCHANGE AN INDICATION THAT TRADERS BELIEVE LUMBER PRICES WHICH HAVE FALLEN SHARPLY IN THE PAST TWO WEEKS WILL STABILIZE SOON TRADERS WILL FOCUS ON REPORTS OF SALES ON THE CASH MARKET FOR LUMBER FOR AN INDICATION OF WHETHER SIGNIFICANT DEMAND EXISTS FOR LUMBER AT ITS CURRENT PRICE LEVELS 9304050092 930405 LEISURE & ARTS BOOKSHELF MEMORIES OF MAO BY MANUELA HOELTERHOFF WHILE OTHER PREP SCHOOL CLASSMATES JOINED WHITESHOE FIRMS SIDNEY RITTENBERG JOINED THE CHINESE COMMUNIST PARTY ALREADY A TRUE BELIEVER WHEN HE ARRIVED IN CHINA IN 1945 A YOUNG GI FLUENT IN MANDARIN HE STAYED ON FOR 35 PERPLEXING YEARS TOILING FOR THE EARTHLY PARADISE HIS COMRADES LEARNED TO LOVE HIM AND EVEN IF THEY MISTAKENLY CONDEMNED HIM TO YEARS OF SOLITARY CONFINEMENT AS AN IMPERIALIST SPY HE FORGAVE THEM ALL AND WORKED HARD TO PERFECT HIMSELF AS A CADRE THEN SOMETHING FINALLY SNAPPED AND HE LEFT CHINA WITH HIS LONGSUFFERING CHINESE WIFE AND CHILDREN NOW MR RITTENBERG RUNS A CONSULTING COMPANY IN WOODINVILLE WASH HE TELLS HIS STORY IN THE MAN WHO STAYED BEHIND SIMON & SCHUSTER 476 PAGES 25 AN UNUSUAL MEMOIR COAUTHORED BY JOURNAL REPORTER AND FORMER BEIJING CORRESPONDENT AMANDA BENNETT HERE ARE SOME EXCERPTS HE HADN'T MEANT TO STAY UNLIKE SOME OTHER AMERICAN PARTY MEMBERS OF THE 1920S AND 1930S WHO SET OUT FOR THE SOVIET UNION SEEKING THE PERFECT SOCIALIST STATE I NEVER THOUGHT OF JOINING A REVOLUTION IN ANOTHER COUNTRY THERE WAS SO MUCH TO DO AT HOME BUT THEN HE DID MY MOTHER'S LOVE OF MONEY AND FINE THINGS HAD MADE MY FATHER'S LIFE MISERABLE I THOUGHT AND I WASN'T ABOUT TO LET IT DESTROY MINE AS WELL I WANTED TO GET CLOSER TO THESE IDEALISTIC CHINESE COMMUNISTS THE BAND STRUCK UP TURKEY IN THE STRAW' MAO NOTED MY STARTLED EXPRESSION SOME AMERICAN COMRADES TAUGHT US THAT SONG' HE SAID WITH AMUSEMENT HE IS LOCKED UP FOR THE FIRST TIME THE EARTH SHOOK UNDER MY FEET AND THE ROOM SWAM BEFORE MY EYES SOMETHING STABBED AT MY BRAIN A FLEETING SHOCK THAT LEFT ME REELING ME UNDER ARREST THIS COULDN'T BE REAL I LOVED THE PARTY ITS AIMS AND ITS STRUGGLE TO CHANGE THE WORLD HE BECOMES A LEADER OF THE CULTURAL REVOLUTION I BECAME KNOWN AS A REBEL ADVOCATE ALL OVER CHINA PEOPLE RECOGNIZED ME ON THE STREET AND I COULD BLOCK A WHOLE LINE OF TRAFFIC SIMPLY BY AGREEING TO STOP TO AUTOGRAPH ONE LITTLE RED BOOK BUT HE RUNS AFOUL OF MAO'S WIFE AND IS CHUCKED BACK INTO JAIL WHERE A FEW YEARS LATER HE HEARS A FAMILIAR VOICE SCREECHING FROM A NEARBY CELL NEARLY NINE YEARS HAD PASSED SINCE I LAST HEARD THAT VOICE BUT THERE WAS NO MISTAKING IT IT WAS JIANG QING ALTHOUGH AS THE WIFE OF THE GREAT CHAIRMAN MAO JIANG QING HAD TRIED TO CULTIVATE A MORE REFINED SPEECH SHE STILL HAD THAT CRANKY NASAL TONE AND UNMISTAKABLE TRACES OF HER ORIGINAL SHANDONG ACCENT NOW AS SHE CALLED OUT TO HER LATE HUSBAND TO SAVE HER FROM HER CAPTORS SHE AFFECTED THE MELODRAMATIC PITCH SHE ALWAYS USED WHEN SHE MADE POLITICAL SPEECHES HE IS AWFULLY FORGIVING MEETING A CADRE WHO HAD HELPED LOCK HIM UP I SAW THE COLOR DRAIN FROM HIS FACE I JUMPED OFF MY BIKE AND HELD OUT MY HAND HOW'S EVERYTHING' I ASKED ANY MAJOR MISJUDGMENTS MY BLIND ACCEPTANCE OF THE TRANQUIL PERFECTION OF THE PEOPLE'S REPUBLIC OF CHINA I HAD FELT SQUEAMISH ABOUT METHODS USED IN THE LAND REFORM I HAD DOUBTS ABOUT MAO'S STRESS ON CLASS ANALYSIS AND CLASS STRUGGLE BUT IN EACH CASE MY APPREHENSIONS HAD BEEN OVERRULED BY MY BELIEF IN MARXIST THEORY AND IN SOME GREAT AUTHORITY DISILLUSIONED HE LEAVES CHINA IN 1980 THE FINAL BLOW TO MY BELIEF CAME WHEN DENG XIAOPING SHUT DOWN DEMOCRACY WALL AND ARRESTED SOME OF THE MAIN POSTERWRITERS MY ALLEGIANCE TO THE PARTY CRUMBLED HONEYCOMBED FROM BENEATH BY THE DOUBTS THAT BEGAN IN PRISON AND BY EVERYTHING I NOW SAW AND HEARD AND FELT AROUND ME ANY REGRETS NO IF I COULD ONLY PUT ONE DROP INTO THE LONG RIVER OF HUMAN PROGRESS THEN MY PURPOSE WOULD BE FULFILLED REMEMBERING MAO I NOW SEE HIM AS A BRILLIANT TALENTED TYRANT RESPONSIBLE FOR THE MISERY AND DEATHS OF MILLIONS OR POSSIBLY TENS OF MILLIONS NEVER A TRUE FRIEND HE TWICE THREW ME INTO WRONGFUL AND FEARFUL ISOLATION WHEN IT SUITED SOME POLITICAL PURPOSE BUT TODAY I BELIEVE THAT MAO WAS A TRAGIC FIGURE OF AESCHYLEAN PROPORTIONS HAVING PREACHED AND WARNED FOR YEARS AGAINST THE CORRUPTION THAT USUALLY FOLLOWS POWER HAVING INVEIGHED AGAINST ARROGANCE AND EXAGGERATION OF THE ROLE PROWESS AND WISDOM OF A SINGLE INDIVIDUAL HE BECAME THEIR VICTIM AND VICTIMIZED THE CHINESE PEOPLE EVEN SO THOSE WHO WEREN'T EXECUTED SAW CHINA CHANGE FOR THE BETTER I SAW THE COUNTRY UNIFIED AND FREE OF INTERNAL WARFARE FOR THE FIRST TIME IN ONE HUNDRED YEARS I SAW TRAGICALLY SHORT LIFESPANS MORE THAN DOUBLE IN LENGTH I SAW SICK CHILDREN HEALED AND EMPTY RICE BOWLS FILLED I ALSO SAW THE BEGINNING OF SOME RUDIMENTARY FORM OF JUSTICE MS HOELTERHOFF IS THE JOURNAL'S BOOKS EDITOR 9304050091 930405 LONDON'S TAX BREAK FOR THE HORSEY SET BOOSTS TATTERSALLS HORSE AUCTION HOUSE OWNERS OF THOROUGHBREDS CHEER VAT DEDUCTION FOR HOBBY BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEWMARKET ENGLAND BRITAIN'S ELEGANT THOROUGHBRED COUNTRY WITH HORSES GRAZING ACROSS LUSH PASTURELAND SEEMS A WORLD REMOVED FROM EUROPE'S GRITTY CROSSBORDER BATTLES FOR JOBS AND INVESTMENT BUT WHEN THE UNIFIED MARKET BEGAN JAN 1 TATTERSALLS THE LEGENDARY HORSE AUCTION HOUSE FOUND ITSELF IN A BATTLE TO RETAIN ITS TAXSHY INTERNATIONAL CUSTOMERS THREATENED BY FOREIGN COMPETITORS WITH LOWER VALUEADDED TAXES MAINLY IN FRANCE AND IRELAND TATTERSALLS DELIVERED A THREAT OF ITS OWN IT WOULD SHIFT ITS MOST PRESTIGIOUS AUCTIONS ABROAD UNLESS GRANTED TAX RELIEF THE THREAT BECAME A LIGHTNING ROD FOR BRITAIN'S HORSE INDUSTRY WHICH RODE HERD ON THE GOVERNMENT UNTIL IT GAVE IN EARLY LAST MONTH LONDON SOOTHED THE HORSEY SET WITH A TAX BREAK VALUED AT 30 MILLION 44 MILLION IN AN AUSTERITY BUDGET THAT IMPOSED NEW LEVIES ON BEER CIGARETTES AND EVEN HOMEHEATING FUEL LONDON LET THOROUGHBRED OWNERS TURN THEIR EXPENSIVE HOBBIES INTO BUSINESSES AND THUS DEDUCT THE 175 VAT ON THE PURCHASE AND TRAINING OF THEIR HORSES THE MOVE WAS WELCOMED IN NEWMARKET WITH THE SORT OF ROUSING CHEERS USUALLY RESERVED FOR A VICTORIOUS PHOTO FINISH AFTER ALL THE AREA IS HOST TO THE NATIONAL HORSERACING MUSEUM 60 TOP TRAINERS AND A SLEW OF STUD FARMS OWNED BY THE LIKES OF THE MAKTOUM BROTHERS OF DUBAI WE WERE WORRIED THAT WE'D LOSE ONETHIRD OF OUR BUSINESS IF TATTERSALLS MOVED THE AUCTIONS SAID MANAGER JOHN SMITH OF THE WHITE HART HOTEL WHOSE 23 ROOMS ARE PACKED WITH FREE SPENDERS DURING SIX WEEKS OF AUCTIONS SPREAD THROUGHOUT THE YEAR FOUNDED IN 1766 TATTERSALLS WITH ANNUAL REVENUE OF 45 MILLION HAS LONG ATTRACTED THE RICH AND REGAL TO ITS ULTRAPOSH AUTUMN YEARLING SALE IN WHICH 400 HORSES CHANGE HANDS FOR AN AVERAGE 5000 TO 50000 EACH BUT IN RECENT MONTHS THE WORLD'S BLOODSTOCK BARONS HAD STARTED TO LATHER OVER THE 55 VAT OFFERED BY FRENCH AUCTION HOUSES AND THE MERE 25 IN IRELAND THE UNIFIED MARKET MEANS NO VAT REFUND IS POSSIBLE FOR EXPORT TO EUROPEAN COMMUNITY COUNTRIES WITH LOWER LEVIES AS A RESULT LOOPHOLES THAT ONCE ALLOWED MOST BUYERS IN BRITAIN TO CLAIM SUCH A REFUND EVEN IF THE HORSE WERE SIMPLY STABLED IN BRITAIN DISAPPEARED OVERNIGHT THE TAX BREAK HAS DRAWN LITTLE CRITICISM GIVEN THE 120000 PEOPLE EMPLOYED IN HORSE RACING BREEDING AND TRAINING AND BRITAIN'S 105 UNEMPLOYMENT RATE INDEED THE TREASURY WILL STILL COLLECT MORE THAN 300 MILLION FROM ITS SHARE OF BETTING ON THE SPORT FIRST RECORDED IN 1530 IN YORK AND CERTAIN TRADITIONS WILL BE PRESERVED THIS IS THE UNIFORM' SAYS PETER GOLDING A FOURTHGENERATION GENTLEMAN'S CLOTHIER POINTING TO RACKS OF TWEED JACKETS AND RAINCOATS WITH CORDUROY COLLARS HIS SHOP HAS OCCUPIED THE SAME SPOT HERE ON HIGH STREET SINCE 1855 THERE'S A CERTAIN STYLE TO NEWMARKET AND PEOPLE MUST BE SEEN TO CONFORM TO A CERTAIN PATTERN MR GOLDING SAYS 9304050090 930405 TURNER'S CNN PLANS TO SET UP STUDIO IN ASIA TOKYO OR HONG KONG SITE IS CONSIDERED LIKELY NEW FACILITY IN ATLANTA BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CABLE NEWS NETWORK THE ATLANTABASED NEWS AND INFORMATION SATELLITE NETWORK INTENDS TO OPEN AN ASIAN PRODUCTION STUDIO EARLY NEXT YEAR CNN PRESIDENT TOM JOHNSON ANNOUNCED THE PLAN AT A NEWS CONFERENCE HERE NEAR THE END OF A WEEKLONG PROGRAMMING AND PUBLICITY BLITZ DESIGNED TO SHOWCASE CNN'S COMMITMENT TO THE REGION LAST MONDAY THE NETWORK BEGAN AIRING A PACKAGE OF ASIAN NEWS FEATURES AS PART OF CNN'S ASIA WEEK AT A COST TO THE NETWORK OF ABOUT 2 MILLION IT CONCLUDED WITH A BROADCAST OF LARRY KING LIVE FROM HONG KONG SATURDAY IN AN INTERVIEW MR JOHNSON SAID THE NETWORK HAS ALSO COMMITTED 10 MILLION TO THE CONSTRUCTION OF A PRODUCTION FACILITY IN ATLANTA FOR CNN INTERNATIONAL THE NETWORK'S INTERNATIONAL PROGRAMMING ARM BOTH MOVES UNDERSCORE THE NETWORK'S EFFORT TO STRENGTHEN ITS INTERNATIONAL NEWS OPERATIONS AND CAPITALIZE ON EMERGING OPPORTUNITIES TO LINK UP WITH CABLE AND SATELLITE OPERATORS IN ASIA THE WORLD'S FASTEST GROWING MARKET FOR SUCH SERVICES ALTOGETHER CNN EXPECTS TO SPEND 10 MILLION TO 15 MILLION ON ITS ASIAN OPERATIONS THIS YEAR NO PART OF THE WORLD IS MORE IMPORTANT TO US THAN ASIA SAID MR JOHNSON IT HAS BECOME A SOURCE OF EXCELLENT AUDIENCE GROWTH AND EXCELLENT ADVERTISING GROWTH AND WE THINK THE OUTLOOK FOR US IN THE REGION IS QUITE GOOD CURRENTLY CNN INTERNATIONAL CAN BE SEEN IN 69 MILLION ASIAN HOUSEHOLDS NOT INCLUDING CHINA AND INDONESIA WHERE THE NETWORK DISTRIBUTES ITS BROADCASTS BUT COLLECTS NO REVENUE ACCORDING TO WILLIAM H GRUMBLES VICE PRESIDENT IN CHARGE OF INTERNATIONAL SALES FOR TURNER BROADCASTING SYSTEM INC CNN'S PARENT IN 1992 CNN'S ADVERTISING SALES IN ASIA TRIPLED THE FASTEST GROWTH IN ANY OF THE FOUR REGIONS EUROPE NORTH AMERICA LATIN AMERICA AND ASIA IN WHICH THE NETWORK OPERATES CNN'S ASIAN ROAD SHOW ROUGHLY COINCIDED WITH THE SEPARATE ANNOUNCEMENTS OF THE FORMATION OF TWO GLOBAL NEWS CONSORTIA ON FRIDAY CANADIAN BROADCASTING CORP AND AUSTRALIA BROADCASTING CORP SAID THEIR NEWS DEPARTMENTS WILL SHARE TECHNICAL FACILITIES PRODUCTION CREWS AND FOREIGN OFFICE SPACE ACCORDING TO NEWS REPORTS TWO WEEKS EARLIER CAPITAL CITIES/ABC INC AND BRITISH BROADCASTING CORP WENT PUBLIC WITH THEIR OWN NEWS ALLIANCE WHEN IT OPENS CNN'S ASIAN PRODUCTION FACILITY WILL HAVE ITS OWN ANCHOR AND SERVE AS THE NEW HOME TO THE NETWORK'S BUSINESS ASIA PROGRAM WHICH IS CURRENTLY PRODUCED IN NEW YORK MR JOHNSON SAID HONG KONG AND TOKYO ARE THE LEADING CONTENDERS AS A SITE FOR THE FACILITY IN ADDITION TO COMMUNICATION TRANSPORTATION AND LOGISTICAL CONSIDERATIONS POLITICAL UNCERTAINTY LINKED TO HONG KONG'S 1997 HANDOVER TO CHINA AND JAPANESE GOVERNMENTIMPOSED TARIFFS ON SATELLITE TRANSMISSIONS WILL BEAR ON THE DECISION ACCORDING TO PETER C VESEY VICE PRESIDENT OF CNN INTERNATIONAL AND EASON JORDAN VICE PRESIDENT IN CHARGE OF INTERNATIONAL NEWS GATHERING SEPARATELY MR VESEY DENIED REPORTS LAST WEEK THAT TURNER BROADCASTING WAS ABOUT TO REACH AGREEMENT WITH INDIA'S GOVERNMENT ON DISTRIBUTION OF THE COMPANY'S NEWS AND ENTERTAINMENT PROGRAMS IN THAT COUNTRY WHILE CONFIRMING THAT MANY DISCUSSIONS HAVE BEEN HELD MR VESEY SAID DETAILED DISCUSSIONS HAVE NOT TAKEN PLACE MR JOHNSON SAID CNN LOOKS FORWARD TO FURTHER NEGOTIATIONS IN THE PAST YEAR CNN HAS OPENED BUREAUS IN BANGKOK AND NEW DELHI BRINGING ITS TOTAL NUMBER OF ASIAN BUREAUS TO SIX OPENED SALES OFFICES IN HONG KONG AND SINGAPORE AND MOVED ONTO ADDITIONAL ASIAN SATELLITES TO EXPAND ITS POTENTIAL AUDIENCE CNN PROGRAMMING IS NOW BEAMED TO ASIAN AUDIENCES OVER THE SUPERBIRD ARABSAT 1C INTELSAT F8 AND PALAPA B2P SATELLITES HOME BOX OFFICE AND ESPN ALSO BROADCAST VIA PALAPA WHICH COVERS 18 COUNTRIES BUT CNN ISN'T CARRIED ON ASIASAT WHICH REACHES 38 COUNTRIES MAKING IT THE LARGEST OF THE NEARLY DOZEN SATELLITES NOW SERVING ASIA ASIASAT IS CONTROLLED BY HONG KONGBASED PANASIAN SATELLITE NETWORK STAR TV WHICH BROADCASTS FIVE FREETOAIR CHANNELS TO 115 MILLION HOMES ACROSS THE REGION THE FIVE CHANNELS WHICH INCLUDE PRIME SPORTS MTV AND CNN COMPETITOR BBC WORLD SERVICE ARE SOLD AS A PACKAGE ASKED WHETHER CNN IS CONSIDERING SEEKING A SIMILAR SETUP WITH HBO AND ESPN ON PALAPA MR JOHNSON SAID THE GROUPING OF SERVICES IS A VERY GOOD CONCEPT BUT HE ADDED I SHOULD ALSO TELL YOU THAT I'VE RECEIVED AN ENORMOUS AMOUNT OF INTEREST FROM PEOPLE IN THE REGION WHO WANT CNN COMING TO THEM VIA ASIASAT OUR OBJECTIVE IS TO BE ON ALL THE MAJOR SATELLITES IN HONG KONG CNN HAS BEEN IN DISCUSSIONS FOR MORE THAN THREE MONTHS WITH WHARF CABLE A UNIT OF WHARF HOLDINGS LTD THAT IS THE SOLE CONTENDER FOR HONG KONG'S CABLE FRANCHISE WHICH IS TO BE AWARDED NEXT MONTH A CNN SPOKESMAN REFUSED TO CONFIRM SPECULATION THAT CNN ALREADY HAS REACHED AGREEMENT WITH WHARF TO BROADCAST ITS 24HOUR NEWS SERVICE BEGINNING IN OCTOBER WHEN THE HONG KONG COMPANY PLANS TO LAUNCH ITS PAYTV SERVICE EARLY LAST WEEK CNN DISTRIBUTED THE RESULTS OF ITS FIRST PANASIAN SENIOR MANAGEMENT VIEWING STUDY ACCORDING TO THE STUDY CNN INTERNATIONAL IS AVAILABLE IN THE HOMES OF 28 OF SENIOR BUSINESS MANAGERS IN JAPAN HONG KONG SINGAPORE AND TAIWAN SEVENTYEIGHT PERCENT OF THOSE WHO WATCH CNN INTERNATIONAL SAID THEY TUNE IN AT LEAST ONCE A MONTH 9304050088 930405 ACCUSED IN SUDAFED CASE FOUND GUILTY IN DEATHS SEATTLE AP A FEDERAL JURY FOUND A MAN GUILTY FRIDAY ON ALL 11 COUNTS OF DRUG TAMPERING IN THE 1991 DEATHS OF TWO PEOPLE AND THE NEARFATAL POISONING OF HIS WIFE JURORS REACHED A VERDICT AGAINST JOSEPH E MELING AFTER THREE DAYS OF DELIBERATIONS AND FOUR WEEKS OF TESTIMONY MR MELING WAS CONVICTED OF SIX COUNTS OF PRODUCT TAMPERING WHICH CARRIES A MAXIMUM PENALTY OF LIFE IN PRISON AS WELL AS TWO COUNTS OF PERJURY AND THREE OF INSURANCE FRAUD HE WAS ACCUSED OF PUTTING CYANIDEFILLED CAPSULES INTO PACKAGES OF SUDAFED 12HOUR DECONGESTANT IN AN ATTEMPT TO KILL HIS WIFE FOR 700000 IN LIFE INSURANCE AND OF PUTTING THE CAPSULES IN FIVE OTHER PACKAGES TO MAKE IT APPEAR SHE WAS THE VICTIM OF A RANDOM KILLER JENNIFER MELING SURVIVED THE FEB 2 1991 POISONING BUT TWO OTHERS WHO TOOK THE TAMPERED CAPSULES DIED THE CASE WAS THE SUBJECT OF TWO PAGEONE ARTICLES IN THE WALL STREET JOURNAL 9304050087 930405 BUSINESS BRIEF DONNELLY CORP FEDERAL COURT RULES CONCERN INFRINGED ON GENTEX PATENT A FEDERAL COURT IN GRAND RAPIDS MICH SAID DONNELLY CORP INFRINGED ON A GENTEX CORP PATENT AND AWARDED GENTEX 22 MILLION IN DAMAGES THE TWO COMPANIES HAVE BEEN INVOLVED IN A PATENT FIGHT OVER THE MIRRORS THAT AUTOMATICALLY DIM THE GLARE OF REFLECTED LIGHT FOR NEARLY THREE YEARS BOTH DONNELLY HOLLAND MICH AND GENTEX ZEELAND MICH MAKE EXTERIOR AND INTERIOR SIDE AND REARVIEW MIRRORS FOR AUTOS THE LATEST RULING AFFECTS AN OLDER LINE OF ELECTROCHROMIC MIRRORS THE GENTEX PATENT INVOLVES A PARTICULAR TYPE OF ELECTROCHROMIC MIRROR USING A LIQUID MATERIAL TO DIM THE MIRROR TO REDUCE GLARE THE COURT WILL CONSIDER THE PATENT'S ENFORCEABILITY AND IS EXPECTED TO MAKE A FINAL RULING ON THAT ISSUE THIS MONTH 9304050086 930405 OTC FOCUS FCC ACTIONS DRIVE CABLE STOCKS LOWER BUT NOT ENOUGH TO MAKE THEM CHEAP BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FEDERAL COMMUNICATIONS COMMISSION'S ASSAULT ON CABLE TELEVISION RATES SENT CABLE STOCKS INTO A HEADLONG RETREAT AND IT COULD BE A LONG ONE LAST WEEK'S 10 TO 20 PRICE SLIDE IN CABLE STOCKS MANY OF WHICH TRADE ON THE NASDAQ MARKET DIDN'T DRIVE THE GROUP LOW ENOUGH TO BE ALLURING ANALYSTS SAY ONE REASON THERE'S STILL MUCH UNCERTAINTY SURROUNDING THE FCC'S SWEEPING ORDER TO ROLL BACK RATES THERE IS NO REASON TO RUSH IN AND BUY RIGHT NOW THESE STOCKS ARE GOING TO HAVE A LONG DRAWNOUT PERIOD WHERE THEY CAN'T GO ANYWHERE UNTIL EVERYONE SEES HOW THINGS SHAKE OUT SAYS ALAN SNYDER HEAD OF SNYDER CAPITAL MANAGEMENT IN SAN FRANCISCO MR SNYDER OWNS SOME SHARES OF TELECOMMUNICATIONS AND COMCAST A LOT OF TIMES PEOPLE JUST RUSH IN AND SAY THIS IS A BEAUTIFUL BUYING OPPORTUNITY BUT THIS MAY BE ONLY THE FIRST ROUND OF HITS ON THURSDAY THE FCC ORDERED STRONG MEASURES TO ENFORCE THE 1992 CABLE ACT BY BASICALLY WIPING OUT ANY PRICE INCREASES THE CABLE INDUSTRY HAD PASSED SINCE THE END OF SEPTEMBER AND SETTING A FORMULA FOR ESTABLISHING NEW BASICSERVICE RATE CEILINGS IN VARIOUS MARKETS CABLE SYSTEMS THAT EXCEED THE LOCAL CEILINGS WILL HAVE TO CUT THEIR RATES BY 10 OR MORE ANALYSTS EXPECT THAT FURTHER RATE CUTS COULD FOLLOW THE FCC FROZE PRICES AT CURRENT LEVELS FOR THE NEXT 120 DAYS AND PLANS TO REVEAL FULL DETAILS OF THE RULES IN A MONTH THE FCC RULINGS WERE MUCH MORE HARSH THAN WE EXPECTED AND TOOK THE WORSE POSSIBLE WAY OF CALCULATING RATES SAYS DENNIS LEIBOWITZ AN ANALYST WITH DONALDSON LUFKIN & JENRETTE ON FRIDAY MR LEIBOWITZ LOWERED HIS INVESTMENT RATING TO MODERATELY ATTRACTIVE FROM BUY ON TELECOMMUNICATIONS COMCAST CABLEVISION AND CENTURY COMMUNICATIONS IT IS GOING TO TAKE SEVERAL MONTHS FOR THE INDUSTRY TO CLEAR UP IN THE END THE RESULT PROBABLY WON'T BE NEARLY AS SEVERE AS IT LOOKS NOW BUT IN THE NEXT SIX MONTHS THESE STOCK ARE NOT LIKELY TO DO VERY WELL MR LEIBOWITZ SAID HE IS STILL POSITIVE ABOUT THE INDUSTRY FOR THE LONG TERM THOUGH HE SAYS THE INDUSTRY STILL HAS GREAT OPPORTUNITY FOR REVENUE GROWTH THROUGH ITS NEW AND DEVELOPING SERVICES SUCH AS MOVIES ON DEMAND BEFORE INVESTORS CAN THINK ABOUT ANY LONGTERM GAINS IN THE STOCKS THEY ARE GOING TO ENDURE MUCH TURBULENCE SAYS KENNETH GOLDMAN AN ANALYST WITH BEAR STEARNS & CO THE FCC INTERPRETED THE CABLE ACT IN A WAY THAT WAS DIFFERENT FROM THE ORIGINAL STATED INTENTION BY CONGRESS AND INTERPRETED BY THE STREET HE SAYS THIS COULD GET TAKEN TO THE COURTS THERE MIGHT BE SOME FIRST AMENDMENT ARGUMENTS MR GOLDMAN DOWNGRADED COMCAST FROM A STRONG BUY TO A BUY AND CONTINUES TO HOLD BUY RATINGS ON TELECOMMUNICATIONS AND CABLEVISION BUT SOME MONEY MANAGERS SAY THE CLIP IN CABLE STOCKS IS LONG OVERDUE EVER SINCE SOUTHWESTERN BELL LAST MONTH ANNOUNCED PLANS TO PURCHASE TWO CABLE SYSTEMS FROM HAUSER COMMUNICATIONS FOR 650 MILLION BUYERS HAVE BEEN BIDDING UP CABLE STOCKS IN THE HOPES THAT PHONE COMPANIES WILL BUY MORE OF THE CABLE SYSTEM OPERATORS FREDERICK MORAN PRESIDENT OF MORAN ASSET MANAGEMENT IN GREENWICH CONN SAYS CABLE STOCKS WERE TRADING AT 85 TO 90 OF THEIR PRIVATEMARKET VALUE WHEN THEY SHOULD BE AT ONLY 75 OF THE PRIVATE VALUE HE SAYS THE STOCKS NOW ARE TRADING AT ABOUT EIGHT TIMES CASH FLOW WHICH IS STILL TOO HIGH COMPARED WITH PRIVATE MARKET VALUES WHICH RANGE FROM SEVEN TO 10 TIMES CASH FLOW THE CASH FLOWS ARE GOING TO SHRINK BECAUSE OF THE PRICE ROLLBACK HE SAYS SO EVEN THOUGH THE PRICES HAVE DROPPED THEY ARE STILL TRADING AT A HIGHER CASH FLOW MULTIPLE THAN THEY SHOULD BE THE NASDAQ COMPOSITE INDEX PLUNGED 1679 OR 245 TO 66985 ITS LARGEST ONEDAY POINT DROP SINCE THE 2515POINT DECLINE FEB DECLINING ISSUES OUTNUMBERED GAINERS 1766 TO 900 TOTAL VOLUME ROSE TO 279261000 SHARES FROM THURSDAY'S 246686000 THE SELLOFF HIT NEARLY EVERY MARKET SECTOR ESPECIALLY TECHNOLOGY ASK GROUP PLUMMETED 8 1/4 OR 43 TO 10 3/4 THE MOUNTAIN VIEW CALIF COMPANY SAID IT EXPECTS TO REPORT BREAKEVEN RESULTS BUT MAY REPORT A LOSS FOR ITS THIRD QUARTER ENDED MARCH 31 THE COMPANY SAID A SIGNIFICANT AMOUNT OF SOFTWARE LICENSE SALES EXPECTED TO OCCUR DURING THE PERIOD DIDN'T CLOSE ASK SPECIALIZES IN DATABASE AND FINANCIAL MANAGEMENT SOFTWARE INTEL TUMBLED 4 TO 107 1/2 MICROSOFT DROPPED 3 1/4 TO 89 3/4 AND DELL COMPUTER LOST 2 1/8 TO 32 7/8 SUN MICROSYSTEMS FELL 1 TO 29 AFTER SG WARBURG SECURITIES REDUCED ITS FISCAL 1993 EARNINGS ESTIMATE TO 145 A SHARE FROM 185 THE COMPANY EARNED 171 A SHARE IN FISCAL 1992 WHICH ENDED JUNE 30 9304050085 930405 QUARTERLY MUTUAL FUNDS REVIEW ANALYSTS LOOK FOR PLUMS AS OVERSEAS FUNDS RIPEN BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU LIKE RUMMAGING THROUGH JUNKYARDS YOU'LL LOVE PICKING AMONG FOREIGNSTOCK FUNDS INTERNATIONAL FUNDS HAVE BEEN SCARRED BY FOUR CONSECUTIVE CALENDAR YEARS OF MISERABLE PERFORMANCE SO THAT EVEN THE BEST FOREIGN FUNDS LOOK LOUSY WHEN STACKED UP AGAINST US STOCK FUNDS BUT WITH FOREIGN MARKETS FINALLY SHOWING SIGNS OF REVIVING FUND ANALYSTS ARE SIFTING THROUGH THESE BEATENUP FUNDS HOPING TO SPOT THE NEXT FOREIGNSTOCK FUND SUPERSTARS WHICH FUNDS ARE CATCHING ANALYSTS' ATTENTION WHILE FUND EXPERTS OFTEN ADVISE STICKING WITH THE LARGER WELLESTABLISHED FUNDS THEY RECKON THE BIGGEST WINNERS IN THE YEARS AHEAD WILL BE FOUND AMONG THE SLEW OF NEWER FUNDS THAT HAS CERTAINLY BEEN TRUE IN 1993 WITH FOREIGNSTOCK FUNDS OUTPERFORMING US FUNDS THROUGH THE FIRST QUARTER THE BIG GAINS HAVE GONE TO SMALLER FUNDS SUCH AS TEMPLETON DEVELOPING MARKETS TRUST AND OAKMARK INTERNATIONAL FUND BOTH OF WHICH HAVE REGISTERED DOUBLEDIGIT RETURNS FOR THE PAST THREE MONTHS BUT PICKING AMONG THESE NEWER SMALLER FUNDS ISN'T EASY FOR STARTERS THERE'S A HUGE NUMBER OF NEW FOREIGNSTOCK FUNDS TO CHOOSE FROM FUND RESEARCHER LIPPER ANALYTICAL SERVICES CURRENTLY TRACKS ALMOST 250 STOCK FUNDS THAT INVEST ABROAD MANY OF THESE FUNDS ARE SMALL AND UNSEASONED ACCORDING TO LIPPER THERE ARE JUST 88 FOREIGN STOCK FUNDS THAT HAVE FIVEYEAR RECORDS AND ONLY 69 FUNDS WITH MORE THAN 100 MILLION IN ASSETS INDEED ALMOST HALF OF THE 43 BILLION INVESTED IN FOREIGNSTOCK FUNDS IS IN NINE 1 BILLIONPLUS MUTUAL FUND BEHEMOTHS THIS SELECT LIST INCLUDES TEMPLETON WORLD FUND CAPITAL RESEARCH & MANAGEMENT'S NEW PERSPECTIVE FUND AND T ROWE PRICE INTERNATIONAL STOCK FUND DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER RECKONS THAT INVESTORS MAY FIND IT PAYS TO VENTURE INTO SOME OF THE SMALLER LESS WELLKNOWN FUNDS THESE SMALLER FUNDS CAN BE MORE NIMBLE NOTES MR PHILLIPS IF THEY HAVE GOOD IDEAS THEY CAN CONCENTRATE THEIR ASSETS IN THOSE IDEAS THE DOWNSIDE IS YOU MAY HAVE SOMEBODY WHO IS LESS EXPERIENCED WHICH OF THE NEWER SMALLER FUNDS ARE WORTH BUYING FUND EXPERTS ARE PARTICULARLY INTRIGUED BY TWO GROUPS OF NEW FUNDS THE BROADLY DIVERSIFIED FUNDS THAT INVEST AROUND THE WORLD AND THE MORE SPECIALIZED FUNDS THAT DABBLE IN SMALLERCOMPANY STOCKS AND EMERGING MARKETS AMONG THE BROADLY DIVERSIFIED FUNDS FUND EXPERTS THINK BARTLETT VALUE INTERNATIONAL FUND OAKMARK INTERNATIONAL AND TWENTIETH CENTURY INTERNATIONAL EQUITY ARE WORTH A CLOSE LOOK ALL THREE FUNDS WHICH CAN BE BOUGHT WITHOUT PAYING A SALES COMMISSION USE INVESTMENT STYLES THAT ARE RELATIVELY RARE IN THE INTERNATIONAL FUND ARENA THE TWENTIETH CENTURY FUND WHICH INVESTS IN STOCKS WITH ACCELERATING EARNINGS GROWTH HAS GOTTEN OFF TO A GOOD START NOTES KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER I DON'T KNOW OF ANY OTHER FUND THAT'S USING AN EARNINGS MOMENTUM APPROACH TO PICKING STOCKS IN FOREIGN MARKETS YOU MAY BE ABLE TO GENERATE BETTER RETURNS USING THAT APPROACH IT'S INTELLECTUALLY APPEALING THE CINCINNATIBASED BARTLETT FUND AND THE CHICAGOBASED OAKMARK FUND MEANWHILE USE A VALUE APPROACH TO PICKING FOREIGN STOCKS VALUE INVESTORS LOOK FOR STOCKS THAT ARE CHEAP BASED ON MARKET YARDSTICKS SUCH AS CURRENT EARNINGS DIVIDEND YIELD AND BOOK VALUE WHILE SUCH AN APPROACH IS COMMON AMONG US STOCKPICKERS IT'S RARER AMONG FOREIGNSTOCK FUND MANAGERS WHO TEND TO PUT A LOT OF EMPHASIS ON TOPDOWN ANALYSIS OF ECONOMIES MARKETS AND CURRENCIES MR GREGORY IS ALSO INTERESTED IN SOME OF THE RECENTLY LAUNCHED FOREIGNSTOCK FUNDS SPECIALIZING IN SMALLER COMPANIES AND EMERGING MARKETS AMONG THE FUNDS HE FAVORS IS ACORN INTERNATIONAL CHICAGO A NOLOAD FUND THAT WAS LAUNCHED LAST YEAR BY RALPH WANGER MR WANGER IS BEST KNOWN AS MANAGER OF THE TOPPERFORMING ACORN FUND ONE OF THE REASONS THERE'S POTENTIAL IN EMERGING MARKETS AND FOREIGN SMALLCOMPANY STOCKS IS BECAUSE THESE AREAS ARE LESS PICKED OVER THAN LARGE COMPANY STOCKS NOTES MR GREGORY IF YOU'VE GOT A GOOD STOCKPICKER LOOKING AT THOSE MARKETS THERE'S A GOOD CHANCE THAT YOU'LL EARN DECENT RETURNS OVER THE LONG HAUL AND RALPH WANGER HAS PROVED HIMSELF TO BE A PRETTY GOOD STOCKPICKER TEMPLETON DEVELOPING MARKETS TRUST IS ALSO WIDELY PRAISED BY FUND ANALYSTS THE FUND IS RUN BY MARK MOBIUS WHO HAS CARVED A NAME FOR HIMSELF AS MANAGER OF THE TEMPLETON EMERGING MARKETS FUND A PUBLICLY TRADED MUTUAL FUND LISTED ON THE NEW YORK STOCK EXCHANGE MANY ANALYSTS CURRENTLY CONSIDER THE PUBLICLY TRADED TEMPLETON FUND TOO EXPENSIVE TO BUY AS A RESULT THEY SEE TEMPLETON DEVELOPING MARKETS TRUST AS A GOOD ALTERNATIVE EVEN THOUGH IT CHARGES A 575 SALES COMMISSION I USE PREDOMINANTLY NOLOAD FUNDS SAYS STEVEN AMES AN ANNAPOLIS MD FINANCIAL PLANNER BUT TEMPLETON DEVELOPING MARKETS SEEMS TO ME TO BE A GOOD FUND BECAUSE OF TEMPLETON'S EXPERIENCE IN INTERNATIONAL INVESTING AND MARK MOBIUS'S EXPERTISE I THINK IT'S A GOOD FUND FOR SIMILAR REASONS FUND EXPERTS FAVOR NEWPORT TIGER FUND SAN FRANCISCO THE FUND WHICH SPECIALIZES IN SMALLER ASIAN MARKETS IS RUN BY JACK MUSSEY AND CHARGES A 5 LOAD I THINK THE SAME THING ABOUT JACK MUSSEY THAT I THINK ABOUT MARK MOBIUS SAYS MORNINGSTAR'S MR PHILLIPS IT REALLY HELPS WITH THESE MARKETS TO INVEST WITH AN EXPERIENCED MANAGER WHO KNOWS THE ROPES THERE AREN'T MANY OF THESE MANAGERS OUT THERE AMONG NEWER NOLOAD EMERGING MARKETS FUNDS NEWSLETTER EDITOR SHELDON JACOBS LIKES T ROWE PRICE NEW ASIA FUND AND SCUDDER LATIN AMERICA FUND BOTH OF WHICH ARE RUN BY FUND COMPANIES WITH A LONG RECORD OF SUCCESSFULLY INVESTING IN FOREIGN MARKETS BUT MR JACOBS EDITOR OF THE NOLOAD FUND INVESTOR AN IRVINGTON NY NEWSLETTER SAYS HIS FAVORITE EMERGING MARKETS FUND IS SAN FRANCISCO'S MONTGOMERY EMERGING MARKETS FUND IF YOU LOOK AT WHAT'S AVAILABLE IN THE NOLOAD AREA THIS IS THE BEST ONE IN OUR OPINION HE SAYS I'M BULLISH ON EMERGING MARKETS FOR THEIR LONGRUN POTENTIAL AND CONVERSELY I'M NOT SURE HOW MUCH POTENTIAL IS LEFT IN THE US I'D RATHER BE PUTTING MONEY IN THE INTERNATIONAL FUNDS THAT HAVEN'T HAD A BIG RUNUP AS OPPOSED TO THE US WHICH HAS HAD A BIG RUNUP FUND ANALYSTS RECKON THE FUNDS BELOW ALL OF WHICH HAVE BEEN LAUNCHED IN THE PAST FOUR YEARS WILL SPARKLE AS FOREIGN MARKETS BOUNCE BACK 9304050084 930405 CHRYSLER GRAND CHEROKEES FACE TWO RECALLS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP WHICH IS STRUGGLING TO ESTABLISH A HIGH QUALITY IMAGE IS RECALLING MOST OF THE JEEP GRAND CHEROKEES IT BUILT SINCE LAUNCHING THE VEHICLE A YEAR AGO CHRYSLER HAS BUILT ONLY ABOUT 180000 OF THE LUXURIOUS SPORTUTILITY VEHICLES SINCE LAST APRIL'S LAUNCH AND IT IS RECALLING 117000 OF THEM OR 65 TO FIX TWO SEPARATE PROBLEMS ABOUT 30000 OF THE GRAND CHEROKEES AND THE GRAND WAGONEER LOOKALIKES ARE BEING RECALLED BECAUSE OF AN IMPROPER FRONTAXLE ASSEMBLY CHRYSLER SAYS BOLTS ATTACHING PART OF THE FRONT SUSPENSION TO THE FRONT AXLE MIGHT FAIL AND COULD RESULT IN IMPROPER PULL TO ONE SIDE WHEN BRAKING THE VEHICLES IN QUESTION WERE BUILT AFTER JAN 10 SEPARATELY CHRYSLER SAYS REAR GATES MAY NOT LATCH CORRECTLY ON 87000 GRAND CHEROKEES AND GRAND WAGONEERS BUILT BEFORE JAN 10 AS A RESULT OWNERS COULD HAVE PROBLEMS OPENING AND CLOSING THE REAR GATE THE RECALLS ARE THE SECOND AND THIRD SINCE CHRYSLER LAUNCHED THE GRAND CHEROKEE IN AN EFFORT TO ATTRACT MORE UPSCALE CUSTOMERS TO ITS JEEP LINE PREVIOUSLY CHRYSLER RECALLED 600 VEHICLES FOR A BRAKE PEDAL PROBLEM JEEP DEALERS WILL INSPECT AND IF NECESSARY REPLACE THE BOLTS AND LATCHES CHRYSLER SAYS NO ACCIDENTS HAVE BEEN REPORTED AS A RESULT OF THE PROBLEMS CHRYSLER SAYS 9304050083 930405 LEHMAN SAYS IT SETTLED 2 LEVINERELATED LAWSUITS NEW YORK AP AMERICAN EXPRESS CO'S LEHMAN BROTHERS BROKERAGE UNIT SAYS IT HAS SETTLED TWO LAWSUITS THAT STEM FROM INSIDER TRADING ALLEGATIONS INVOLVING DENNIS LEVINE AND TWO CORPORATE TAKEOVERS IN THE EARLY 1980S LEHMAN DISCLOSED THE DECEMBER 1992 SETTLEMENTS THURSDAY IN A SECURITIES AND EXCHANGE COMMISSION FILING TERMS WERE NOT DISCLOSED A LEHMAN SPOKESMAN DECLINED TO ELABORATE ON THE FILING ONE CASE INVOLVED A 1986 LAWSUIT BROUGHT BY HERCULES INC AND SIMMONDS PRECISION PRODUCTS INC THAT STEMMED FROM HERCULES'S 1983 BUYOUT OF SIMMONDS THE LAWSUIT ALLEGED THAT DENNIS LEVINE WRONGFULLY ADVISED HERCULES TO OVERBID FOR SIMMONDS AND THAT DENNIS LEVINE ALSO TRADED IN SIMMONDS STOCK BASED ON CONFIDENTIAL INFORMATION FROM HERCULES AND TIPPED OTHERS WITH THE INFORMATION THE LEHMAN DOCUMENT SAID THE SECOND SETTLEMENT INVOLVED A LAWSUIT THAT AROSE FROM THE 1983 ACQUISITION OF ITEK CORP BY LITTON INDUSTRIES INC A LEHMAN CLIENT IN 1986 MR LEVINE PLEADED GUILTY TO FOUR FELONY CHARGES AGREED TO PAY 116 MILLION TO SETTLE CIVIL CHARGES AND COOPERATE WITH THE GOVERNMENT INVESTIGATION 9304050082 930405 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR AFTER A YEAR OF ROCKBOTTOM INFLATION TWO MONTHS OF PRICE INCREASES TO START OUT 1993 HAVE ATTRACTED A LOT OF ATTENTION THE CONSUMER PRICE INDEX ROSE 05 IN JANUARY AND 03 IN FEBRUARY CREATING AN UNEASINESS THAT INFLATION MAY BE ACCELERATING THE INDEX ROSE ONLY 29 FOR ALL OF 1992 THE SMALLEST INCREASE IN SIX YEARS GARY CIMINERO CHIEF ECONOMIST AT FLEET FINANCIAL GROUP ESTIMATED ANOTHER 03 INCREASE FOR THE MARCH CONSUMER PRICE INDEX WHICH WOULD MEAN PRICES HAVE RISEN AT A 47 RATE SO FAR THIS YEAR HOWEVER MR CIMINERO EXPECTS CONSUMER PRICES TO MODERATE AS THE YEAR PROGRESSES AND FINISH 35 HIGHER FOR ALL OF 1993 THAT'S HIGHER BUT CERTAINLY NOT ONEROUS HE SAID SEVERAL FACTORS ARE PUTTING UPWARD PRESSURE ON PRICES INCLUDING THREATENED TARIFFS ON IMPORTED CARS STEEL AND PAPER PRODUCTS WHICH HAVE GOTTEN DOMESTIC MANUFACTURERS IN THE MOOD TO RAISE PRICES HE SAID OTHER INFLATIONARY PROPOSALS ARE THE CLINTON ADMINISTRATION'S PROPOSED ENERGY TAX AND PRICE CONTROLS FOR PHARMACEUTICALS IT'S ANTICIPATORY PRICE HIKING ANY FIRM WITH PRICING POWER WILL WANT TO GET PRICES UP NOW MR CIMINERO SAID THE ECONOMY UNLIKE AN ACCOUNTANT DOESN'T WAIT AROUND FOR THE EVENT TO HAPPEN 9304050081 930405 US AND CANADA AGREE TO RESTART BEER TALKS OTTAWA US TRADE REPRESENTATIVE MICKEY KANTOR AND CANADIAN TRADE MINISTER MICHAEL WILSON AGREED TO REVIVE SOON STALLED TALKS ON THE USCANADA BEER TRADE DISPUTE BUT MESSRS KANTOR AND WILSON SAID THEY MUST CONSULT FURTHER WITH THEIR DOMESTIC BEER INDUSTRIES BEFORE THE NEGOTIATIONS CAN BEGIN MR KANTOR SAID HE WOULD LIKE THE LONGSTANDING DISPUTE RESOLVED BEFORE SUMMER CANADA AND THE US REACHED AN AGREEMENT LAST YEAR WHICH LARGELY RESOLVED THE TRADE SPAT BUT THE DEAL FELL APART WHEN ONTARIO RAISED ITS WAREHOUSING CHARGES FOR US BEER AND IMPOSED AN ENVIRONMENTAL LEVY OF 10 CANADIAN CENTS ON EACH ALUMINUM CAN OF BEER MOST IMPORTS FROM THE US ARE SOLD IN CANS WHILE CANADIAN BEER IS SOLD MAINLY IN BOTTLES THE US IN RETALIATION LEVIED A 3 IMPORT DUTY ON EACH 24BOTTLE CASE OF BEER FROM ONTARIO MESSRS KANTOR AND WILSON MADE LITTLE HEADWAY IN RESOLVING OTHER USCANADA TRADE DISPUTES INCLUDING LUMBER STEEL AND DURUM WHEAT MR WILSON RAISED AGAIN A CANADIAN STEEL INDUSTRY PROPOSAL FOR A STEEL TRADE PACT BETWEEN THE TWO COUNTRIES SO FAR US STEELMAKERS HAVE SHOWN LITTLE INTEREST IN THE IDEA TWOWAY TRADE BETWEEN THE US AND CANADA TOTALED 1876 BILLION LAST YEAR MR WILSON ESTIMATED THAT THE TRADE DISPUTES INVOLVE ONLY 2 OR 3 OF THE TOTAL TRADE VALUE 9304050080 930405 WHO'S NEWS IACOCCA THOMAS ELECTED DIRECTORS AT MGM GRAND LAS VEGAS MGM GRAND INC'S BOARD NOMINATED FORMER CHRYSLER CHAIRMAN LEE A IACOCCA 68 YEARS OLD AND NEVADA BANKING PIONEER E PARRY THOMAS 71 AS DIRECTORS OF THE CASINO COMPANY MR IACOCCA'S NOMINATION UNDERSCORES THE RETIRED AUTO EXECUTIVE'S CLOSE TIES WITH BILLIONAIRE INVESTOR KIRK KERKORIAN WHO CONTROLS 356 MILLION MGM GRAND COMMON SHARES OR 76 OF THE STOCK OUTSTANDING MR KERKORIAN ALSO IS CHRYSLER'S LARGEST STOCKHOLDER WITH 32 MILLION COMMON SHARES OR A 97 STAKE MR THOMAS SPENT NEARLY FOUR DECADES AT THE HELM OF VALLEY CAPITAL CORP WHOSE SUBSIDIARY BANK WAS ONE OF THE FEW FINANCIAL INSTITUTIONS THAT WOULD LEND MONEY TO THE CASINO INDUSTRY IN ITS EARLY DAYS OF DEVELOPMENT JEFFREY BARBAKOW MANAGING DIRECTOR OF DONALDSON LUFKIN & JENRETTE SECURITIES AND JOE MURPHY MGM GRAND'S CHIEF FINANCIAL OFFICER ARE NOT STANDING FOR REELECTION WHICH WOULD LEAVE THE BOARD AT 13 MEMBERS MGM GRAND IS BUILDING A 1 BILLION HOTELCASINO AND THEME PARK WHICH WILL BE ITS PRINCIPAL BUSINESS 9304050079 930405 UAW CHIEF AT GM'S SATURN UNIT VOWS TO BACK CONSENSUSMANAGEMENT PACT BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE TOP UNION OFFICIAL AT GENERAL MOTORS CORP'S SATURN SUBSIDIARY SAID HE WILL CONTINUE TO SUPPORT THE UNIT'S CLOSE LABORMANAGEMENT PARTNERSHIP DESPITE A NARROW REELECTION VICTORY THAT HIGHLIGHTED RANK AND FILE DISSENT MICHAEL BENNETT PRESIDENT OF UNITED AUTO WORKERS LOCAL 1853 WON REELECTION TO HIS POST LAST THURSDAY BY A 52 TO 48 MARGIN A CLOSE CALL FOR A UAW ELECTION GM HAS SHOWCASED SATURN AS A LABORATORY FOR CONSENSUS MANAGEMENT STYLE THAT BLURS TRADITIONAL BOUNDARIES BETWEEN LABOR AND MANAGEMENT BUT OPPONENTS TO MR BENNETT FOUND CONSIDERABLE SUPPORT FOR AN AGENDA THAT CALLED FOR PUTTING MORE DISTANCE BETWEEN UNION MEMBERS AND BOSSES THERE'S BOUND TO BE SOME SOUL SEARCHING AS TO WHAT THE 48 ARE UPSET ABOUT SAID HARLEY SHAIKEN A LABOR EXPERT AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO BOB HOSKINS WHO CHALLENGED MR BENNETT IN THE RUNOFF ELECTION CAMPAIGNED FOR A TRADITIONAL OVERTIME ARRANGEMENT IN WHICH WORKERS WOULD RECEIVE EXTRA PAY FOR EACH HOUR WORKED OVER EIGHT HOURS IN A DAY ACCORDING TO MR BENNETT THIS WOULD HAVE ADDED ABOUT 60 MILLION TO SATURN'S ANNUAL COSTS AND ABOUT 200 TO THE RETAIL PRICE OF EACH CAR MR BENNETT SAID MR HOSKINS COULDN'T BE REACHED FOR COMMENT FRIDAY WHILE SATURN CARS HAVE BEEN STRONG SELLERS EVER SINCE THEY FIRST HIT THE MARKET IN 1990 THE UNIT HAS POSTED BIG OPERATING LOSSES EACH YEAR SATURN'S MANAGEMENT UNDER PRESSURE FROM GM MANAGEMENT HAS PLEDGED TO MAKE MONEY ON AN OPERATING BASIS THIS YEAR AND MR SHAIKEN BELIEVES THE PRESSURE TO IMPROVE THE BOTTOM LINE IS TAKING ITS TOLL ON WORKERS SATURN'S GONE THROUGH SOME TURBULENT TIMES AND IT'S FAR FROM OUT OF THE WOODS MR SHAIKEN SAID SATURN'S MANAGEMENT SEEMED RELIEVED WE ARE PLEASED THAT THE UAW LOCAL 1853 ELECTORAL PROCESS IS COMPLETE AND THE OFFICERS CAN FOCUS THEIR FULL ATTENTION ON THE CHALLENGES FACING SATURN THIS YEAR SAID RICHARD G LEFAUVE SATURN'S PRESIDENT IN A STATEMENT MR BENNETT RECEIVED 2913 VOTES IN THE TWOMAN RUNOFF RACE 361 VOTES MORE THAN HE RECEIVED A WEEK EARLIER WHEN HE FACED THREE CHALLENGERS HIS OPPONENT IN THE RUNOFF ELECTION BOB HOSKINS RECEIVED 2644 VOTES IN THE RUNOFF AN INCREASE OF 861 VOTES FROM THE FIRST ELECTION ALL 13 MEMBERS OF MR BENNETT'S MANAGEMENT CAUCUS WHICH CALLED ITSELF THE VISION TEAM ALSO WON CLOSE VICTORIES TO RETAIN SEATS ON THE LOCAL'S EXECUTIVE BOARD THE PARTNERSHIP IS ALIVE AND WELL IN SPRING HILL TENN SAID MR BENNETT WHO PLEDGED TO BEGIN IMMEDIATELY TO WORK AT PULLING THE MEMBERSHIP BACK TOGETHER SO THAT SATURN CAN GET ON WITH BUILDING WORLD CLASS QUALITY CARS MUCH OF THE CAMPAIGN CENTERED AROUND MR BENNETT'S LEADERSHIP STYLE AND MR BENNETT SAID MANY WORKERS WHO VOTED AGAINST HIM STILL SUPPORT SATURN'S LABORMANAGEMENT SYSTEM HE SAID AN EARLIER ELECTION IN JANUARY WHEN WORKERS DECIDED BY A 7129 MARGIN TO RETAIN SATURN'S INNOVATIVE LABOR CONTRACT WAS A BETTER INDICATION OF THAT THAN THE RUNOFF ELECTION 9304050077 930405 LOS ANGELES STORY PETER UEBERROTH FINDS FIXING RIOTTORN CITY AN OLYMPIAN TASK AMID POLITICS AND RECESSION REBUILD LA ISN'T LIVING UP TO ITS NAME SO FAR FIGHTING FIRES AT THE OFFICE BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IT HAS BEEN A TOUGH FIRST YEAR FOR PETER UEBERROTH IN HIS EFFORT TO REBUILD THIS RIOTTORN CITY BUT THE LOW POINT PROBABLY CAME AT 815 PM LAST DEC 17 THAT IS WHEN A FIRE BROKE OUT IN MR UEBERROTH'S PRIVATE OFFICE AT THE HEADQUARTERS OF REBUILD LA THE NONPROFIT GROUP HE HEADS IT DESTROYED HIS PAPERS FAMILY PHOTOS AND A WALL OF DRAWINGS GIVEN TO HIM BY A GROUP OF NINEYEAROLDS AND IT APPEARS TO HAVE BEEN SET AUTHORITIES SAY THERE ARE SUSPECTS BUT WON'T ELABORATE MR UEBERROTH ALSO WON'T COMMENT ON THE FIRE WHICH RLA MANAGED TO KEEP OUT OF THE PRESS BUT ASSOCIATES SAY HE WAS SHAKEN HERE HE WAS TRYING TO HELP THE CITY SAYS A FRIEND HE WAS WONDERING WHAT WAS GOING ON ONE ANSWER MIGHT BE THAT IN TAKING ON THE TASK OF URBAN RENEWAL HERE FOLLOWING LAST APRIL'S RIOTS THE 55YEAROLD MR UEBERROTH HAS FINALLY MET HIS MATCH BESIDES THE SIMPLE FIRES OF COMBUSTION HE HAS IN 11 MONTHS AS HEAD OF RLA BEEN BURNED BY RACIAL ANTAGONISMS POLITICAL INFIGHTING AND A BLISTERING CALIFORNIA RECESSION THESE COMBINED WITH SOME OF HIS OWN MISSTEPS HAVE LEFT MR UEBERROTH STRUGGLING TO TURN INTO REALITY HIS DREAM OF TAPPING THE PRIVATE SECTOR TO REBUILD LOS ANGELES AND IN THE PROCESS TO PROVIDE A BLUEPRINT FOR OTHER TROUBLED URBAN AREAS THE STORY OF RLA'S FIRST YEAR IS IN MANY WAYS THE STORY OF THE NATION'S URBAN AGENDA OR LACK OF IT PERHAPS THE MOST REMARKABLE FEATURE OF RLA IS ITS VERY EXISTENCE THAT A LARGELY VOLUNTEER GROUP COULD BE GIVEN THE MAIN RESPONSIBILITY FOR RESPONDING TO THE NATION'S WORST URBAN RIOT IN A CENTURY JUST HIGHLIGHTS SOME WOULD SAY THE FAILURES OF GOVERNMENT AND OTHER INSTITUTIONS LOTS OF PEOPLE THOUGHT IT WAS A LOSER OF AN ASSIGNMENT SAYS BARRY SANDERS AN RLA COCHAIRMAN MR UEBERROTH MR SANDERS AND OTHERS SAY THEY ARE CONVINCED THEIR TASK IS DOABLE AND THEY CAN POINT TO SOME SOLID ACHIEVEMENTS IN WHAT MR UEBERROTH CALLS THE MOST IMPORTANT AND POWERFUL PRIVATESECTOR URBAN INITIATIVE IN THE HISTORY OF THE COUNTRY ABOUT 50 COMPANIES HAVE COMMITTED SOME 450 MILLION IN NEW RETAIL ESTABLISHMENTS TRAINING PROGRAMS AND OTHER INVESTMENTS MORE THAN 1200 VOLUNTEERS ARE WORKING ON VARIOUS RLA COMMITTEES RANGING FROM URBAN BUSINESS FINANCING TO IMPROVING RACE RELATIONS FINAL TOUCHES ARE BEING PUT ON PLANS TO PUMP TENS OF MILLIONS OF DOLLARS INTO INNERCITY SMALL BUSINESSES CARLTON JENKINS MANAGING DIRECTOR OF FOUNDERS NATIONAL BANK THE ONLY BLACKOWNED BANK HERE SAYS RLA HAS PUT FOUNDERS IN CONTACT WITH CORPORATE SOURCES OF EXPANSION CAPITAL SUCH NETWORKING IS RLA'S REAL VALUE HE SAYS TOO MANY IN THE COMMUNITY EXPECT THAT IF THEY JUST HOLD OUT THEIR HANDS RLA WILL DROP SOMETHING INTO IT MR JENKINS SAYS THE PROBLEM IS THAT RLA IS WAY OFF PACE TO COMPLETE ITS MISSION WITHIN ITS PLANNED FIVEYEAR LIFE WHILE RLA COUNTS PRIVATE COMMITMENTS OF 450 MILLION THE GROUP HAS CALCULATED THAT INVESTMENTS WORTH ABOUT 5 BILLION ARE NEEDED TO REDEVELOP THE HOUSING RETAIL AND INDUSTRIAL BASE OF NEGLECTED DISTRICTS OF LOS ANGELES AND TO PROVIDE AT LEAST 75000 NEW JOBS AND TIME AND EVENTS SEEM TO BE CONSPIRING AGAINST MR UEBERROTH'S ORGANIZATION THE FEAR OF NEW RIOTS IS GROWING AS THE CITY APPROACHES THE APRIL 29 ANNIVERSARY OF LAST YEAR'S MAYHEM SPARKED BY THE STATECOURT ACQUITTAL OF FOUR WHITE POLICEMAN IN THE BEATING OF BLACK MOTORIST RODNEY KING LOS ANGELES FINDS ITSELF IN THE MIDST OF TWO MORE POTENTIALLY EXPLOSIVE CRIMINAL CASES ONE IS THE FEDERAL TRIAL OF THE FOUR OFFICERS WHICH IS EXPECTED TO GO TO THE JURY AS EARLY AS THIS WEEK THE OTHER IS THE COMING STATE TRIAL OF SEVERAL BLACK MEN ACCUSED OF BEATING WHITE TRUCK DRIVER REGINALD DENNY DURING THE RIOTS MAKING MATTERS WORSE THE CITY IS HEAVILY ARMED GUN SALES BRISK EVER SINCE THE RIOTS STEPPED UP RECENTLY IN ANTICIPATION OF THE TRIALS AND THOUSANDS OF FIREARMS WERE LOOTED FROM GUN SHOPS DURING THE RIOT AUTHORITIES FROM GOV PETE WILSON TO LOS ANGELES POLICE CHIEF WILLIE WILLIAMS SAY THAT THIS TIME THEY ARE PREPARED TO PUT ENOUGH FORCES IN THE STREETS EARLY ENOUGH TO HEAD OFF ANY VIOLENCE THAT MIGHT THREATEN IF THE FOUR POLICE OFFICERS ARE ACQUITTED OR IF DEFENDANTS IN THE DENNY CASE ARE CONVICTED THE CONCERN ABOUT MORE RIOTING ONLY UNDERSCORES THE DEEPER PROBLEMS STILL FACING LOS ANGELES THE UNEMPLOYMENT RATE IN THE LA AREA WAS 104 LAST MONTH COMPARED WITH 9 A YEAR AGO AND MORE THAN THREE PERCENTAGE POINTS ABOVE THE NATIONAL RATE IT IS EVEN HIGHER IN SOUTH CENTRAL LOS ANGELES WHERE THE RIOTS WERE CENTERED THE SCARS OF THOSE RIOTS STILL ABOUND IN DOZENS OF PLACES BURNEDOUT STORES REMAIN OR CLEARED LOTS HAVE BEEN LEFT VACANT OWNERS OF ONLY A QUARTER OF THE 500 BADLY DAMAGED OR DESTROYED BUILDINGS HAVE SOUGHT PERMITS TO REBUILD HERE AND THERE A GLEAMING NEW GASOLINE STATION OR STORE HAS BEEN ERECTED BUT THESE ARE ISLANDS IN WHAT REMAINS A SEA OF TROUBLES IT IS STARTING TO FEEL LIKE 1965 REVISITED SAYS THE REV CECIL MURRAY SENIOR MINISTER OF THE FIRST AFRICAN METHODIST EPISCOPAL CHURCH REFERRING TO THE AFTERMATH OF THE WATTS RIOT WHEN REBUILDING EFFORTS FLOUNDERED WHEN MR UEBERROTH TOOK OVER AS HEAD OF RLA HE HAD HOPED TO MAKE IT FEEL LIKE 1984 REVISITED A GOLDEN YEAR FOR HIM AND THIS CITY IT WAS THEN THAT MR UEBERROTH A WEALTHY TRAVELAGENCY ENTREPRENEUR ROCKETED TO INTERNATIONAL FAME AS ORGANIZER OF THE HIGHLY SUCCESSFUL SUMMER OLYMPICS HERE HE WENT ON TO BECOME COMMISSIONER OF MAJOR LEAGUE BASEBALL WHEN THE RIOTS BROKE OUT HE WAS LIVING IN LAGUNA BEACH AN AFFLUENT SEASIDE ENCLAVE 40 MILES SOUTH OF LOS ANGELES HE WAS RUNNING A CONSULTING AND INVESTMENT FIRM WHOSE MOST PUBLICIZED VENTURE HAD BEEN THE TAKEOVER OF HAWAIIAN AIRLINES BUT ASSOCIATES SAY HE YEARNED TO RETURN TO CENTER STAGE PETER WAS IN A VELVET RUT SAYS A FRIEND MR UEBERROTH HAD TALKED TO ROSS PEROT ABOUT BEING THE BILLIONAIRE'S VICE PRESIDENTIAL CANDIDATE HE ALSO HAD PUBLICLY FLIRTED WITH RUNNING FOR THE SENATE THEN LOS ANGELES BURST INTO FLAMES ON THE THIRD DAY OF RIOTING MR UEBERROTH WAS IN HIS CAR WHEN HE GOT A CALL FROM MAYOR TOM BRADLEY WHO HAD ALSO BASKED IN THE 1984 OLYMPIC GLORY THE MAYOR WANTED TO KNOW IF MR UEBERROTH WOULD SIGN ON TO LEAD THE CITY'S REBUILDING EFFORT THE JOB'S DETAILS WERE SKETCHY BUT BY THE NEXT DAY MR UEBERROTH HAD AGREED TO TAKE IT ON WHEN THE GOLD RING COMES AROUND YOU GRAB IT SAYS ONE UEBERROTH CONFIDANT CRITICS IMMEDIATELY POPPED UP ASKING WHAT A WEALTHY WHITE REPUBLICAN FROM SUBURBAN ORANGE COUNTY WAS DOING TRYING TO HEAL WHAT MAY BE AMERICA'S ULTIMATE MULTIETHNIC METROPOLIS I DON'T KNOW HIM TO BE THE GREAT MEDIATOR OF RACE RELATIONS DECLARED LOS ANGELES COUNTY SUPERVISOR GLORIA MOLINA I DON'T KNOW THAT HE KNOWS HOW TO DEAL WITH PEOPLE WHO ARE DOWN AND OUT A BLACK BUSINESSWOMAN SPEAKING UP AT ONE OF HIS EARLY MEETINGS RAISED ANOTHER OBJECTION DECLARING WE JUST CAN'T HAVE THE GREAT WHITE HOPE RIDE IN MR UEBERROTH HAS TOLD FRIENDS AND ASSOCIATES WITH MORE THAN A LITTLE FRUSTRATION THAT IT HAS SEEMED AS IF SOME COMMUNITY LEADERS WERE ALMOST ROOTING FOR HIM TO FAIL WHATEVER IT MIGHT MEAN FOR THEIR CITY IN SOME WAYS MR UEBERROTH EXACERBATED HIS PROBLEMS BY BEING TYPICALLY HARDNOSED AND BLUNT DESPITE HIS GROUP'S NAME HE HAD LITTLE INTEREST IN SIMPLY REBUILDING THE DAMAGED STORES AND RETURNING THE RIOT AREA TO ITS PREVIOUS DILAPIDATED CONDITION INSTEAD HE SPOKE REPEATEDLY OF CREATING A GRAND TRIPOD OF GOVERNMENT COMMUNITY GROUPS AND ABOVE ALL THE PRIVATE SECTOR WHICH WOULD WORK TO TRANSFORM THE NEGLECTED AREAS OF LOS ANGELES IN THE UEBERROTH VISION THESE AREAS WOULD BE FILLED WITH GLEAMING NEW RETAIL CENTERS AND BUSINESS COMPLEXES SURROUNDED BY GREENERY AND TRANQUILITY WE WANT TO TURN THE DEVASTATED NEIGHBORHOODS INTO THE SAFEST IN TOWN HE TOLD ONE EARLY MEETING OF BUSINESS LEADERS GLITTERING VISIONS NOTWITHSTANDING SCORES OF SMALLBUSINESS OWNERS BURNED OUT BY THE RIOTS DESPERATELY LOOKED TO MR UEBERROTH FOR HELP IN SOLVING THEIR INDIVIDUAL PROBLEMS MATTERS CAME TO A HEAD TWO WEEKS AFTER THE RIOTS AT A PRIVATE MEETING BETWEEN MR UEBERROTH AND SEVERAL DOZEN KOREANAMERICAN COMMUNITY LEADERS AT THE YOUNG NAK PRESBYTERIAN CHURCH MANY THERE WERE FIRSTGENERATION IMMIGRANTS WHO SPOKE WITH THE RLA LEADER THROUGH AN INTERPRETER THE ROOM WAS FULL OF ANGER AND PLEAS FOR AID BUT MR UEBERROTH STOOD FIRM I AM SORRY AND ASHAMED FOR WHAT HAPPENED TO YOU HE SAID BUT I CAN'T OFFER YOU HELP I DIDN'T COME HERE TO MAKE YOU FEEL GOOD I CAME HERE TO TELL YOU THE TRUTH FOR TS CHUNG A PROMINENT LOCAL ATTORNEY WHO WAS IN ATTENDANCE THE MEMORY OF THAT MEETING STILL BITES FOR KOREANAMERICAN VICTIMS RLA HAS BEEN A NONFACTOR FROM DAY ONE HE SAYS FROM THE BEGINNING MR UEBERROTH HAD VOWED TO KEEP RLA ABOVE THE RACIAL BATTLES TEARING THROUGH LOS ANGELES AFTER THE RIOTS HE PROMISED TO MAKE THE ORGANIZATION A TENT BIG ENOUGH TO ACCOMMODATE EVERYBODY NO MATTER WHAT THEY THOUGHT OF EACH OTHER THAT WAS EASIER SAID THAN DONE APPOINTING DIRECTORS AND FILLING 45 STAFF JOBS WAS AN ARDUOUS TASK MR UEBERROTH WANTED TO INCLUDE A FEW LATINO POLITICIANS WHO HAPPENED TO BE RIVALS OF MR BRADLEY THE CITY'S BLACK MAYOR BUT MR BRADLEY VEHEMENTLY OBJECTED AND IN A PRIVATE FACEOFF WITH MR UEBERROTH AT CITY HALL THE MAYOR THREATENED TO WITHDRAW HIS SUPPORT FROM RLA SAY PEOPLE FAMILIAR WITH THE MEETING SHOCKED AND ANGERED MR UEBERROTH BACKED DOWN TO AVOID A POTENTIALLY DISASTROUS PUBLIC RUPTURE MR UEBERROTH WON'T COMMENT ON THE EPISODE AND MR BRADLEY DECLINES TO BE INTERVIEWED AND SOME OF MR UEBERROTH'S PICKS FOR THE BOARD TURNED DOWN HIS OFFER SUCH AS THE REV MR MURRAY HE SAYS HE WAS CONCERNED THAT THE BOARD WAS TOO LARGE TO BE EFFECTIVE AFTER THE NOMINEES WERE ANNOUNCED THE UEBERROTH TEAM THEN HAD TO TAKE MORE TIME TO RESPOND TO CRITICISM OF THE INITIAL CHOICES AND ADD NEW NAMES UNTIL THE BOARD HAD SWOLLEN TO 80 MEMBERS THERE HAVE ALSO BEEN INTERNAL BATTLES AT RLA'S CRAMPED ONESTORY HEADQUARTERS BUILDING ON THE OUTSKIRTS OF DOWNTOWN MOST NOTABLE WERE THE FIGHTS BETWEEN MR UEBERROTH AND COCHAIRMAN BERNARD KINSEY A BLACK FORMER XEROX CORP EXECUTIVE MR KINSEY CLASHED WITH MR UEBERROTH AND OTHERS OVER THE DIVISION OF DUTIES AND POWER SOME OF THE DISPUTES DEGENERATED INTO SHOUTING MATCHES THAT COULD BE HEARD THROUGHOUT THE RLA BUILDING IT WAS EMBARRASSING AN RLA STAFFER RECALLS MR KINSEY WHO HAS BEEN LOOKING FOR ANOTHER JOB BLAMES THE CLASHES ON THE STRESS OF 80HOUR WORKWEEKS AND THE FACT THAT I'M NOT ANYBODY'S PUPPET BUT HE ADDS PETER AND I HAVE A LOT OF RESPECT FOR EACH OTHER MR UEBERROTH SAYS WE ARE ALL GROWING IN THESE JOBS AND CONCEDES THAT I'M NOT ALWAYS THE EASIEST GUY TO GET ALONG WITH WITH NO LAWMAKING AUTHORITY OR MONEY TO DOLE OUT RLA HAS HAD PRECIOUS LITTLE POWER BEYOND THAT OF PERSUASION AND CONSENSUS SO WHEN SOMETIMES VIOLENT DEMONSTRATIONS FLARED AT CONSTRUCTION SITES OVER WHICH RACES WOULD GET JOBS RLA COULD ONLY OFFER A PROGRAM TO AFFIX AN RLA SIGN AT SITES WHERE CONTRACTORS AGREED TO CERTAIN FAIRHIRING GUIDELINES THE BIGGEST PROBLEM THOUGH WAS THAT MR UEBERROTH'S TRIPOD NEEDED STRONGER LEGS POLITICIANS FROM PRESIDENT BUSH ON DOWN HAD COME TO LOS ANGELES IN THE DAYS AFTER THE RIOTS TO PROMISE HELP BUT A FEDERAL URBANAID PACKAGE DIED LATE LAST YEAR IN PREELECTION WRANGLING THE STATE OF CALIFORNIA HAS BEEN SO UNHELPFUL THAT MR UEBERROTH RECENTLY HAD A PRIVATE GRIPE SESSION WITH GOV WILSON AND ASIDE FROM VETOING BOARD NOMINEES MAYOR BRADLEY WHO IS RETIRING IN JUNE AFTER 20 YEARS IN OFFICE HAS LATELY SHOWN LITTLE INTEREST IN THE REBUILDING EFFORTS RLA OFFICIALS CLAIM I AM BEYOND FRUSTRATION MR UEBERROTH SAID IN AN INTERVIEW LAST NOVEMBER HOW CAN THESE PEOPLE DEMOCRATS AND REPUBLICANS HOLD THEIR JOBS AND NOT MAKE ONE ATTEMPT TO MAKE THINGS BETTER IN THE INNER CITY TODAY MR UEBERROTH SAYS HE IS HEARTENED BY RECENT MEETINGS IN WASHINGTON WITH PRESIDENT CLINTON AND OTHER ADMINISTRATION OFFICIALS CONCERNING MORE FEDERAL HELP THE CORPORATE RESPONSE THE SUPPOSED ENGINE OF RLA ALSO HASN'T YET BEEN NEARLY ENOUGH IT IS SMART BUSINESS FOR COMPANIES TO COME TO THE INNER CITY MR UEBERROTH HAS REPEATEDLY ARGUED IN MEETINGS WITH BUSINESS AND COMMUNITY GROUPS THERE ARE PROFITS TO BE MADE BESIDES URBAN BLIGHT WAS SPREADING LIKE CANCER AFFECTING THE CUSTOMER BASE OF BUSINESSES EVERYWHERE UNLESS YOU ARE A COMPANY THAT SELLS ONLY FARM EQUIPMENT THAT SHOULD CONCERN YOU HE TOLD REPORTERS SHORTLY AFTER THE RIOTS BUT WORLDWIDE ECONOMIC SLUGGISHNESS HAS UNDERCUT HIS ARGUMENTS EVEN AMONG RLA BACKERS FOR INSTANCE GENERAL MOTORS CORP AND ITS LOS ANGELESBASED HUGHES AIRCRAFT UNIT COMMITTED 18 MILLION IN GOODS AND SERVICES TO THE REBUILDING EFFORT AT THE SAME TIME GM CLOSED ITS LAST AUTO PLANT IN THE AREA ELIMINATING 2600 JOBS PRESSURE TO PRODUCE LED TO A PUBLICRELATIONS DISASTER LAST FALL IRRITATED BY SOME CRITICAL COMMENTS FROM A LOS ANGELES TIMES EDITOR OVER LUNCH MR UEBERROTH ORDERED HIS STAFF TO DASH OFF A LIST OF MAJOR COMPANIES LOOKING TO INVEST IN LOS ANGELES AND HAVE IT READY FOR PUBLIC RELEASE AT THE RLA BOARD MEETING THE NEXT DAY SUBSEQUENTLY THE TIMES RAN AN ARTICLE SAYING THAT MORE THAN A QUARTER OF THE 68 LISTED FIRMS DENIED ANY SUCH INTEREST THE DAY THE STORY RAN MR UEBERROTH INSISTED THAT ALL HAD AT ONE TIME OR ANOTHER APPROACHED RLA AND HE SUGGESTED THAT THE MEDIA FOCUS ON THE FIRMS THAT WERE INVESTING IF LA DOESN'T START BEING NICE TO ITSELF IT IS GOING TO BE A SAD DAY HE SAID THE CONTROVERSY OVER THE LIST HURT OUR CREDIBILITY SAYS MR KINSEY IT GAVE BUSINESSES WHO WERE THINKING OF DOING SOMETHING WITH RLA A REASON NOT TO DO IT DESPITE ALL THE HEADACHES MR UEBERROTH SAYS HE REMAINS COMMITTED TO RLA IF ANYTHING HE SAYS THE PAST YEAR HAS SHOWN HIM THAT THE NEED TO DRAMATICALLY CHANGE THE ENVIRONMENT OF THE INNER CITY IS FAR MORE IMPORTANT THAN I THOUGHT IT WAS 9304050076 930405 MARKETING & MEDIA ADVERTISING TOBACCO FIRMS ARE CHEWED OUT FOR CIGARETTE SIGNS AT BALLPARKS BY KEVIN GOLDMAN WHEN THE NEW YORK METS' STAR RIGHTHANDER DWIGHT GOODEN HURLS THE FIRST PITCH AGAINST THE COLORADO ROCKIES AT SHEA STADIUM THIS AFTERNOON ANTISMOKING PROPONENTS WON'T HAVE THEIR EYES ON THE BALL COMPETING FOR THEIR ATTENTION AND IGNITING THEIR VEXATION WILL BE THE ENORMOUS MARLBORO CIGARETTE BILLBOARD AFFIXED TO THE STADIUM'S GIANT VIDEO SCREEN IN LEFTCENTER FIELD ACROSS THE NATION ANTISMOKING ADVOCATES ARE HUFFING AND PUFFING OVER ONE OF TOBACCO'S LAST AND HIGHESTPROFILE ADVERTISING VENUES THE HUGE BILLBOARDS AT BASEBALL STADIUMS SUCH ORGANIZATIONS AS NEW YORKBASED SMOKEFREE EDUCATIONAL SERVICES CONTEND THAT THE BILLBOARDS SOME MEASURING AS MUCH AS 15 FEET BY 50 FEET INFLUENCE YOUNG PEOPLE TO BEGIN LIGHTING UP AND INHALING THE GROUPS ALSO ARGUE THAT THE BILLBOARDS ARE A SLY WAY TO CIRCUMVENT THE LONGSTANDING BAN ON TV CIGARETTE ADVERTISING BECAUSE THEY ARE POSITIONED AT CAMERAPERFECT ANGLES AND THUS VISIBLE TO MILLIONS OF TV FANS MARLBORO MAKER PHILIP MORRIS AND OTHER TOBACCO COMPANIES DISMISS SUCH CRITICISM SAYING THAT THE BILLBOARDS ARE A VALID AND LEGAL WAY TO ENHANCE BRAND RECOGNITION BUT THIS HASN'T STOPPED STADIUMS FROM EXTINGUISHING THE SIGNS SOME ARENAS SUCH AS THE MINNESOTA METRODOME HAVE REMOVED CIGARETTE BILLBOARDS ENTIRELY OTHERS SAY THEY WILL JUNK THEM WHEN CONTRACTS WITH TOBACCO SPONSORS EXPIRE THE SEATTLE KINGDOME FOR EXAMPLE SAID THIS WEEK IT WOULD JETTISON ITS BILLBOARD FEATURING THE MARLBORO MAN BY YEAR'S END ANOTHER SLICE OF AMERICANA WILL TAKE ITS PLACE THE GOLDEN ARCHES OF MCDONALD'S THE BILLBOARDS ARE HANDY REVENUEEARNERS FOR THE STADIUMS RUNNING AS MUCH AS 225000 ANNUALLY THE CONTRACT BETWEEN MARLBORO AND THE HOUSTON ASTRODOME HOME OF THE ASTROS BASEBALL TEAM AND OILERS FOOTBALL TEAM EXPIRED LAST MONTH WHEN THE ASTROS OPEN THEIR SEASON TONIGHT AGAINST THE PHILADELPHIA PHILLIES THE BILLBOARD WILL STILL BE HANGING BUT IT WILL BE SHROUDED DISCREETLY FROM VIEW WITH A DRAPE PUBLIC OPINION IS THE REASON SAYS NEAL GUNN EXECUTIVE VICE PRESIDENT OF ASTRODOME USA WE'RE A PUBLIC FACILITY AND WE GET LOTS OF CALLS AND LETTERS COMPLAINING IT'S IN THE BEST INTEREST OF THE STADIUM TO TAKE THE SIGN DOWN ANOTHER REASON THE ASTRODOME LIKE MANY STADIUMS IS SMOKEFREE PERHAPS THE STICKIEST BATTLE AT THE MOMENT IS BEING WAGED AT SHEA STADIUM THE HOME OF THE METS THE METS TELEVISION AUDIENCE IS SIGNIFICANT BECAUSE IT EXTENDS WELL BEYOND THE CONFINES OF THE NEW YORK CITY REGION SOME METS GAMES ARE BROADCAST ON WWOR A SOCALLED SUPERSTATION THAT IS SEEN ON CABLE SYSTEMS NATIONWIDE SMOKEFREE EDUCATIONAL SERVICES LAST WEEK BEGAN A RADIO ADVERTISING CAMPAIGN LAMBASTING NEW YORK MAYOR DAVID N DINKINS FOR FAILING TO PRESS THE STADIUM TO DEEPSIX THE MARLBORO BILLBOARD EACH SPOT TAKES MR DINKINS TO TASK FOR ACCEPTING MORE THAN 30000 IN CAMPAIGN CONTRIBUTIONS FROM TOBACCO INTERESTS AND THE OWNERS OF THE METS COINCIDENCE CONCLUDES ONE COMMERCIAL WHAT DO YOU THINK NONSENSE RETORTS LEE JONES THE MAYOR'S PRESS SECRETARY HE SAYS MR DINKINS LONG AGO CONVEYED IN LETTERS AND IN PERSON TO THE OWNERS OF THE METS AND YANKEES THAT TOBACCO BILLBOARDS WEREN'T APPROPRIATE MESSAGES FOR SPORTS ARENAS BUT WE DON'T HOLD THE CONTRACT WITH THE TOBACCO COMPANIES HE SAYS WE CANNOT BREAK THE CONTRACTS THE METS HAVE WITH PHILIP MORRIS MR JONES HEATEDLY DENIES SMOKEFREE'S ALLEGATION THAT THE MAYOR IS INFLUENCED BY POLITICAL CONTRIBUTIONS IN FACT MR JONES HAS AN ALLEGATION OF HIS OWN SMOKEFREE'S PRESIDENT HE CHARGES OFFERED TO DONATE 25000 TO MR DINKINS' FAVORITE CHARITY IN EXCHANGE FOR A FACETOFACE MEETING WITH THE MAYOR TO PRESS HIS CASE ABOUT THE BILLBOARD JOSEPH CHERNER PRESIDENT OF THE ANTISMOKING ORGANIZATION SAYS THE OFFER WAS MADE ONLY AFTER THE MAYOR REFUSED TO MEET WITH HIM MARK BINGHAM VICE PRESIDENT OF MARKETING FOR THE NEW YORK METS IS UNAPOLOGETIC ABOUT THE MARLBORO SIGN WE HAVE A CONTRACT THAT WE'RE GOING TO HONOR HE SAYS ADDING THAT SHEA ISN'T CONSIDERING SUBSTITUTING ANOTHER PHILIP MORRIS PRODUCT FOR THE CIGARETTES SHEA ALLOWS SMOKING IN THE SEATS AND OTHER AREAS ALTHOUGH THERE ARE NOSMOKING SECTIONS AS WELL THE ONLY WAY THE BILLBOARD COULD BE REMOVED BEFORE THE CONTRACT EXPIRES IN SEVERAL YEARS IS IF THE METS DECIDE IT INTERFERES WITH THE CHARACTER AND DIGNITY OF THE STADIUM THAT IS HIGHLY DOUBTFUL THE METS' DECISION TO STICK WITH THE BILLBOARD IS A TIMELY ONE FOR PHILIP MORRIS WHICH NEEDS ALL THE EXPOSURE IT CAN GET ON FRIDAY THE COMPANY ANNOUNCED IT WILL BEGIN AGGRESSIVELY DISCOUNTING AND PROMOTING MARLBOROS WHICH ARE UNDER SEIGE FROM DISCOUNT BRANDS PHILIP MORRIS ALSO PLANS TO EXPAND ITS MARLBORO ADVENTURE TEAM PROMOTION IN WHICH SMOKERS SWAP COUPONS FROM MARLBORO PACKS FOR LIGHTERS CLOTHES AND OTHER MERCHANDISE THE SHEA BILLBOARD WILL DOVETAIL NEATLY WITH THE REVVED UP MARLBORO CAMPAIGN BUT A PHILIP MORRIS SPOKESWOMAN TAKES PAINS TO DOWNPLAY ITS IMPORTANCE IN THE FIRST PLACE SHE STRESSES IT'S INTENDED FOR ADULT SMOKERS SHE ADDS THAT PHILIP MORRIS FROWNS ON UNDERAGE SMOKING FURTHER SHE DISPUTES THE NOTION THAT THE BILLBOARD GETS WIDE TELEVISION EXPOSURE ALTHOUGH SMOKEFREE'S MR CHERNER CONTENDS THAT IN ONE RANDOM GAME LAST SEASON THE SIGN APPEARED ON THE TV SCREEN OVER 15 TIMES VIEWERS REALLY AREN'T PAYING ATTENTION INSISTS THE SPOKESWOMAN WHEN THE BALL IS HIT TO THE OUTFIELD SHE SAYS MOST PEOPLE WATCHING AT HOME ARE LOOKING AT WHERE THE BALL WILL LAND AND AREN'T FIXATED ON A BILLBOARD THE TOP 10 TELEVISION SHOWS AMONG BLACK VIEWERS ARE COMPLETELY DIFFERENT FROM THOSE OF THE GENERAL POPULATION ACCORDING TO A REPORT ON BLACK TELEVISION VIEWING FROM AD AGENCY BBDO THIS YEAR JUST FOUR SHOWS ON NIELSEN'S TOP 20 LIST AMONG ALL VIEWERS ALSO MADE THE TOP 20 LIST OF BLACK VIEWERS THE SMALLEST NUMBER SINCE THE OMNICOM GROUP AGENCY BEGAN STUDYING BLACKS' VIEWING HABITS EIGHT YEARS AGO BBDO ANALYZED NIELSEN MEDIA RESEARCH RATINGS DATA FROM THE FIRST HALF OF THE CURRENT SEASON THE FRESH PRINCE OF BEL AIR ON THE NBC NETWORK WAS THE MOST POPULAR SHOW AMONG BLACK HOUSEHOLDS DISPLACING NBC'S A DIFFERENT WORLD WHICH FELL TO SIXTH ACCORDING TO BBDO THE FOX NETWORK'S ROC WAS NO 2 AND IN LIVING COLOR WAS NO 3 AMONG BLACK VIEWERS FOX BROADCASTING IS A UNIT OF NEWS CORP NBC IS A UNIT OF GENERAL ELECTRIC IN COMPARISON AMONG THE GENERAL POPULATION FRESH PRINCE RANKED NO 19 ROC NO 75 IN LIVING COLOR NO 48 DOUG ALLIGOOD A BBDO VICE PRESIDENT SAID THE SPLIT IN TV TASTE PROBABLY DOESN'T REFLECT A LARGER CULTURAL DIVIDE IN THE PAST THERE WERE FEWER SHOWS BASED ON BLACK CHARACTERS SO BLACK AUDIENCES AUTOMATICALLY TENDED TO WATCH THE SAME THINGS AS EVERYONE ELSE NOW HE SAYS BLACK VIEWERS MERELY HAVE MORE OPTIONS COCACOLA CO SAID CHARLES B FRUIT VICE PRESIDENT DIRECTOR OF GLOBAL MEDIA SERVICES HAS BEEN GIVEN ADDED RESPONSIBILITY FOR CREATIVE ADVERTISING STRATEGY FOR COCACOLA DIET COKE SPRITE AND FANTA WELL REGARDED FOR HIS SKILLS AT MEDIA BUYING MR FRUIT 46 YEARS OLD JOINED COKE FROM ANHEUSERBUSCH INC IN 1991 MR FRUIT ASSUMES THE DAYTODAY RESPONSIBILITY FOR COKE'S CREATIVE STRATEGY WHICH HAD BEEN HANDLED BY PETER S SEALEY SENIOR VICE PRESIDENT OF COKE AND DIRECTOR OF GLOBAL MARKETING UNDER MR SEALEY'S LEADERSHIP COKE ENLISTED THE HELP OF HOLLYWOOD TALENT AGENCY CREATIVE ARTISTS AGENCY TO HELP PRODUCE THE NEW COCACOLA CLASSIC CAMPAIGN MR FRUIT CONTINUES TO REPORT TO MR SEALEY HYATT REVIEW WPP GROUP'S OGILVY & MATHER NEW YORK SAID IT HAD DROPPED OUT OF THE PITCH FOR HYATT CORP'S ESTIMATED 25 MILLION ACCOUNT LEAVING TWO CONTENDERS OMNICOM GROUP'S BBDO NEW YORK AND LEO BURNETT CO CHICAGO OGILVY CITED ITS PRESENCE IN ANOTHER MORE PRESSING PITCH FOR SEARS'S APPAREL ACCOUNT AND NEW ASSIGNMENTS FROM CLIENT KRAFT GENERAL FOODS HYATT CONTRADICTED THE AGENCY'S VERSION OF THE EXIT WE ASKED OGILVY TO WITHDRAW OUT OF CONSIDERATION FOR THE AGENCY A HYATT SPOKESWOMAN SAID ADDING WE DIDN'T THINK THEY COULD WIN RESIGNATION MCKINNEY & SILVER RALEIGH NC SAID IT RESIGNED FROM THE ESTIMATED 15 MILLION BAHAMAS TOURISM ACCOUNT RATHER THAN PARTICIPATE IN A REVIEW WHICH THE AGENCY SAID IS NOW UNDERWAY TOURISM OFFICIALS FOR THE BAHAMAS CONFIRMED THE ACCOUNT IS UP FOR REVIEW BUT DECLINED TO ELABORATE ACCOUNTS CML GROUP INC'S NORDICTRACK TAPPED OGILVY & MATHER DIRECT A UNIT OF WPP GROUP FOR ITS ESTIMATED 8 MILLION TO 10 MILLION SHORT FORM DIRECTRESPONSE ACCOUNT PREVIOUSLY AT YOUNG & RUBICAM'S WUNDERMAN WORLDWIDE KLM ROYAL DUTCH AIRLINES HIRED PARTNERS & SHEVACK NEW YORK TO HANDLE ITS 8 MILLION AD ACCOUNT PREVIOUSLY AT ANGOTTI THOMAS & HEDGE NEW YORK DOUBLETREE HOTELS CORP PHOENIX TAPPED THE LOS ANGELES OFFICE OF INTERPUBLIC GROUP'S MCCANNERICKSON THE AGENCY SAID BILLINGS COULDN'T BE DETERMINED 9304050075 930405 BUSINESS BRIEF INCO HOMES CORP PAPERWORK HITCH DELAYS STOCK OFFER BY FOUR DAYS A PAPERWORK HITCH PROMPTED UNDERWRITERS FOR INCO HOMES CORP ESSENTIALLY TO SUSPEND ITS INITIAL PUBLIC OFFERING AND REPRICE IT FOUR DAYS LATER THE SOUTHERN CALIFORNIA HOMEBUILDER'S 22 MILLION SHARE OFFERING IS EXPECTED TO START TRADING THIS MORNING ON THE NASDAQ MARKET PENDING FINAL APPROVAL FROM THE SECURITIES AND EXCHANGE COMMISSION UNDERWRITERS BLAMED THE UNUSUAL DELAY ON INCO'S FAILURE TO MEET ITS EARNINGS PROJECTION BY ROUGHLY ONE CENT A SHARE IN DOING OUR DUE DILIGENCE IT BECAME APPARENT THAT SOME CLOSINGS OF HOMES MADE IN MARCH WOULD BLEED OVER INTO THE NEXT QUARTER SAYS RICHARD SMITH A MANAGING DIRECTOR AT LEAD UNDERWRITER MONTGOMERY SECURITIES IN SAN FRANCISCO MONTGOMERY SLASHED THE NUMBER OF SHARES BY 666000 CUTTING INCO'S VALUATION TO 812 MILLION FROM 902 MILLION THE SHARE PRICE REMAINED AT 10 9304050074 930405 SURVEY SAYS MOST NONPROFIT GROUPS PAID CHIEF EXECUTIVES OVER 100000 YEARLY BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SURVEY OF EXECUTIVE PAY AT 122 NONPROFIT ORGANIZATIONS FOUND THAT AT LEAST 99 OF THE GROUPS PAID THEIR CHIEF EXECUTIVES MORE THAN 100000 A YEAR BUT IN SOME CASES THE SURVEY FOUND OTHER EMPLOYEES RECEIVED FAR MORE FOR INSTANCE A PROFESSOR OF SURGERY AT CORNELL UNIVERSITY EARNED 17 MILLION IN THE FISCAL YEAR ENDED JUNE 1991 THE PRESIDENT OF THE UNIVERSITY EARNED 111131 LESS THAN 10 OF THAT ALTHOUGH HIS BENEFITS EXCEEDED HIS SALARY THAT YEAR THE SURVEY DIDN'T GIVE DETAILS OF THE PROFESSOR'S PAY AT LINCOLN CENTER IN NEW YORK THE FIVE HIGHESTPAID EMPLOYEES WHO AREN'T OFFICERS ARE STAGEHANDS EARNING 110467 TO 146820 THE SURVEY FOUND ONLY THE PRESIDENT WITH A SALARY OF 315000 IN THE FISCAL YEAR ENDED JUNE 1992 EARNED MORE THE SURVEY WAS CONDUCTED BY THE CHRONICLE OF PHILANTHROPY AN INDEPENDENT PUBLICATION THAT COVERS NONPROFIT ORGANIZATIONS BECAUSE IT WAS THE NEWSPAPER'S FIRST COMPREHENSIVE SURVEY ON SALARIES THERE WEREN'T ANY COMPARATIVE NUMBERS BUT STACY PALMER A NEWS EDITOR SAID THE SURVEY WAS DISTINCT FROM OTHERS IN THAT IT LISTED SPECIFIC SALARIES OF INDIVIDUAL EXECUTIVES AT VARIOUS INSTITUTIONS OTHER SURVEYS GIVE AGGREGATE INFORMATION WITHOUT SPECIFICALLY IDENTIFYING GROUPS OR EXECUTIVES SHE SAID THE CHRONICLE SURVEY WAS BASED ON THE ORGANIZATIONS' TAX RETURNS AND THE GROUPS INCLUDED WERE GLEANED FROM THE CHRONICLE'S LIST OF ORGANIZATIONS THAT RAISE THE MOST MONEY FROM PRIVATE SOURCES IT EXAMINED VARIOUS NONPROFIT CATEGORIES INCLUDING ARTS AND CULTURE GROUPS ENVIRONMENTAL AND ANIMALRELATED GROUPS AND HUMAN SERVICES ORGANIZATIONS THREE INSTITUTIONS ALL HOSPITALS PAID THEIR TOP EXECUTIVES MORE THAN 400000 INCLUDING BENEFITS WITH THE HIGHEST SALARY AMONG EXECUTIVES 799492 GOING TO THE PRESIDENT OF MOUNT SINAI MEDICAL CENTER IN NEW YORK BUT UNLIKE MOST OF THE OTHER SALARIES IN THE SURVEY THE MOUNT SINAI PRESIDENT'S INCLUDED 26249 OF BENEFITS ALTHOUGH THE SURVEY LISTED BENEFITS SEPARATELY IT DIDN'T COMBINE FIGURES FOR THE COMPLETE PACKAGE NOT ALL THE BENEFITS GET REPORTED SAID MS PALMER OF THE CHRONICLE SHE SAID REPORTING BENEFITS IS A PARTICULARLY DIFFICULT AREA FOR THE GROUPS IN THE BULK OF CASES I THINK THEY DON'T UNDERSTAND HOW TO FILL THEM OUT SHE ADDED ALTHOUGH THE SURVEY DIDN'T COMPARE SALARIES WITH THOSE OF PREVIOUS YEARS KENNETH L ALBRECHT PRESIDENT OF THE NATIONAL CHARITIES INFORMATION BUREAU A WATCHDOG GROUP HERE SAID THE CONTROVERSY WITH THE UNITED WAY AND ITS FORMER PRESIDENT'S COMPENSATION PROBABLY HAD A DAMPING EFFECT ON SALARY INCREASES FOR TOPLEVEL PEOPLE AT CHARITABLE ORGANIZATIONS AS REPORTED A SURVEY LAST YEAR OF TOP EXECUTIVES OF 300 NONPROFIT GROUPS FOUND THE AVERAGE TOP SALARY AS OF JULY 1 FELL 24 COMPARED WITH AN INCREASE OF 14 A YEAR EARLIER MOST OF THE CHARITIES DIDN'T CHANGE THEIR EXISTING PRACTICES SINCE THEY TEND TO BE CONSERVATIVE SAID JIM MOSS A PRINCIPAL AT TOWERS PERRIN A MANAGEMENT CONSULTING FIRM MR MOSS SAID THE FIRM WHICH TRACKS COMPENSATION LEVELS AND CHANGES IN BENEFITS HASN'T SEEN MUCH OF A CHANGE FROM 1991 TO 1992 WHEN YOU LOOK AT THE SIZE OF SOME OF THE CHARITIES IN TERMS OF THE TYPE OF REVENUE THEY GENERATE AND THE STAFFS THEY HAVE ONE WOULD EXPECT THE LEVEL OF COMPENSATION TO BE HIGHER MR MOSS SAID INDEED 11 CHIEF EXECUTIVES IN THE CHRONICLE SURVEY EARNED LESS THAN 60000 THE HIGHEST PAID EXECUTIVE AT THE SALVATION ARMY WITH INCOME OF 129 BILLION FOR THE YEAR ENDED SEPT 30 1991 WAS THE PUBLICATIONS MANAGER WHO WAS PAID 54096 IN 1992 THE NATIONAL COMMANDER EARNED 35818 THE SURVEY SAYS BUT HE SHARES HIS SALARY WITH HIS WIFE WHO IS NATIONAL PRESIDENT OF THE SALVATION ARMY WOMEN'S ORGANIZATIONS THE COUPLE RECEIVES ABOUT 50000 IN TOTAL BENEFITS INCLUDING SALARY HOUSING AND A CAR 9304050073 930405 TECHNOLOGY INFORMATION AGE ALPHANUMERIC PAGERS EXTEND THEIR REACH BY WILLIAM M BULKELEY HIGHTECH COMPUTER MAKERS ARE STARTING TO PEDDLE PRICEY PORTABLE PCS WITH ANTENNAS TO KEEP USERS IN CONSTANT WIRELESS CONTACT BIG DEAL SAYS JOHN MAGULLIAN A FUELOIL DEALER IN KEARNY NJ I CAN SEND MY SIX DRIVERS ORDERS FOR FUEL DELIVERIES ON THEIR PAGERS I PAY 20 A MONTH AND WE PROBABLY GET ONE EXTRA FUEL DELIVERY EACH DAY BECAUSE DRIVERS AREN'T WASTING TIME CALLING IN HE SAYS MR MAGULLIAN'S DRIVERS HAVE ALPHANUMERIC PAGERS THAT CAN DISPLAY FOURLINE 80CHARACTER MESSAGES SUCH AS DELIVER 300 GALLONS AT 85 FIELDCREST LANE THAT'S ALL THE DRIVERS NEED TO SEE MR MAGULLIAN SAYS HE ADDS THAT IN MY BUSINESS A LOT OF PEOPLE WHEN THEY SEE AN OIL TRUCK NEXT DOOR CALL UP AND ORDER WE CAN CATCH HIM WHILE HE'S STILL IN THE AREA ALPHANUMERIC PAGERS HAVE BEEN AROUND FOR A DECADE BUT THEY'RE GETTING MORE ATTENTION LATELY AS A TOOL FOR MOBILE WORKERS LIKE ALL PAGERS THEY'RE LIMITED TO SMALL AMOUNTS OF INFORMATION AND CAN'T REPLY TO MESSAGES THEY COST 150 TO 250 APIECE TWICE THE COST OF DIGITAL PAGERS THAT JUST DISPLAY NUMBERS MOST USERS ALSO PAY 20 TO 30 A MONTH TWICE THE MONTHLY CHARGE FOR DIGITAL PAGERS ONE REASON THE SERVICE COSTS MORE IS THAT THE PAGER COMPANY HAS TO PROVIDE AN ANSWERING SERVICE THAT WILL TAKE A DICTATED MESSAGE AND SEND IT OUT STILL MONTHLY BILLS FOR ALPHANUMERIC PAGERS ARE MUCH LOWER THAN FOR CELLULAR PHONES AND PAGERS WEIGH MUCH LESS THAN EVEN THE SMALLEST HANDHELD COMPUTERS THE PAGER IS ALMOST A POOR MAN'S MOBILE DEVICE IT'S THE DEVICE PEOPLE ARE WILLING TO CARRY AROUND SAYS TIMOTHY HUDSON PRESIDENT OF FOURTH WAVE TECHNOLOGIES INC TROY MICH WHICH MAKES SOFTWARE TO LET COMPUTERS SEND MESSAGES TO THE PAGERS WE THINK THE MARKET IS READY TO TAKE OFF SAYS ALBERT GENCARELLA PRESIDENT OF TNI PAGING INC KENDALL PARK NJ WHICH HAS SEEN ALPHANUMERIC SUBSCRIBERS TRIPLE TO 14000 IN THE PAST YEAR AS IT CUT PRICES TO AS LOW AS 17 A MONTH TELOCATOR THE INDUSTRY TRADE GROUP SAYS ONLY ABOUT 7 OF THE NATION'S 14 MILLION PAGERS ARE ALPHANUMERIC HOWEVER SALES ARE GROWING AT 27 A YEAR COMPARED WITH 15 GROWTH FOR DIGITAL PAGERS THAT DISPLAY ONLY A PHONE NUMBER TO CALL THE GROUP SAYS IF YOU'RE ON THE ROAD IT'S NICE TO GET THE MESSAGE SAYS BARRY HABIB PRESIDENT OF CERTIFIED MORTGAGE ASSOCIATES A MARLBORO NJ MORTGAGE BROKER HIS 20 BROKERS ARE EQUIPPED WITH ALPHANUMERIC PAGERS THAT TELL THEM WHENEVER INTEREST RATES MOVE WE PAGE THEM AND TELL THEM TO LOCK IN THEIR CLIENTS TO PROTECT THEM FROM AN UPWARD MOVEMENT HE SAYS WE USE THAT AS A BIG SELLING TOOL SOME COMPANIES SEE THE SPREAD OF PAGERS AS AN OPPORTUNITY TO SELL INFORMATION TO CUSTOMERS NATIONAL DISPATCH CENTER INC A SAN DIEGO FIRM THAT PROVIDES AN OPERATOR ANSWERING SERVICE FOR 575 PAGING COMPANIES AROUND THE COUNTRY PROVIDES NEWSMASTER WHICH MANY PAGING COMPANIES DISTRIBUTE FREE THE SERVICE INCLUDES CAPSULE HEADLINES TOP NEWS STORIES WEATHER REPORTS SPORTS TRIVIA AND HUMOR MR HABIB ENCOURAGES HIS MORTGAGE BROKERS TO CHECK THE NEWS IT HELPS IN MAKING CONVERSATION FOR THEM TO BE A SOURCE WHO'S KNOWLEDGEABLE ABOUT CURRENT EVENTS OTHER SERVICES ARE MORE SPECIALIZED NATIONAL DISPATCH HAS A 60AMONTH STOCKQUOTE SERVICE THAT PAGES USERS WHENEVER STOCKS IN THEIR PORTFOLIO MOVE A CERTAIN AMOUNT DOCUPRO INC WASHINGTON CHARGES AN AVERAGE OF 185 A MONTH FOR QUOTES FOR FIXEDINCOME SECURITIES PROVIDED BY TELERATE A UNIT OF DOW JONES & CO PUBLISHER OF THIS NEWSPAPER SOME GUYS SLEEP WITH THEIR HANDS ON THE VIBRATING BEEPER SO THEY'LL WAKE UP IF THEIR CONTRACT REACHES THEIR LIMIT ON TOKYO OVERNIGHT SAYS DOCUPRO'S EDWARD SPEAR METRIPLEX INC CAMBRIDGE MASS ANOTHER PROVIDER OF FINANCIAL INFORMATION SEES ADDITIONAL OPPORTUNITIES IT'S TESTING IN BOSTON HOSPITALS A PAGER FOR DOCTORS THAT AUTOMATICALLY DISPLAYS THEIR PATIENTS' TEST RESULTS AS SOON AS THE LABORATORIES COMPLETE THEM THEN THERE'S SPORTSPAGE FROM BEEPERS PLUS INC LAS VEGAS A SERVICE FOR GAMBLERS THAT PROVIDES UPDATED SCORES ON SPORTS EVENTS EVERY FIVE MINUTES IT HAS SEVERAL THOUSAND SUBSCRIBERS AT 54 A MONTH INCREASINGLY COMPANIES ARE SENDING MESSAGES TO PAGER OWNERS DIRECTLY FROM THEIR COMPUTERS DANIEL HORN DIRECTOR OF OPERATIONS FOR A TURNER BROADCASTING SYSTEM INC UNIT SAYS THAT WHEN WORD OF THE WORLD TRADE CENTER BOMBING BROKE ASSIGNMENT EDITORS WERE ABLE TO BEEP EVERY REPORTER AND CAMERAMAN IN GREATER NEW YORK TO TELL THEM TO HEAD DOWNTOWN AT LOTUS DEVELOPMENT CORP CAMBRIDGE MASS SOME USERS OF NOTES ITS GROUP MANAGEMENT SOFTWARE HAVE INSTRUCTED THEIR COMPUTERS TO PAGE THEM WHENEVER THEY GET MESSAGES FROM CERTAIN PEOPLE WILLIAM FLANAGAN PRODUCT MANAGER SAYS THAT ONE SALES MANAGER GETS AUTOMATICALLY UPDATED ON SALE CLOSINGS AT THE END OF THE QUARTER TELLING HIM HOW MUCH ABOVE QUOTA HE IS SOFTWARE PACKAGES SUCH AS THE 149 NOTIFY FROM EX MACHINA INC NEW YORK AND THE 129 WINBEEP FROM FOURTH WAVE COORDINATE WITH NUMEROUS OTHER PACKAGES TO FORWARD MESSAGES UPDATE CALENDARS OR WARN TRAVELING EMPLOYEES OF INVENTORY SHORTAGES OR PRICE CHANGES NETWORKMANAGEMENT SOFTWARE CAN BE INSTRUCTED TO PAGE MANAGERS WHEN THEY'RE AWAY FROM THEIR TERMINALS AND SOMETHING BREAKS AS MORE AND MORE SOFTWARE BECOMES AVAILABLE ENTHUSIASTS SKETCH A FUTURE SCENARIO IN WHICH ONE PERSON CAN SAY TO ANOTHER HAVE YOUR COMPUTER CALL MY COMPUTER CHECK MY CALENDAR AND PAGE ME FOR LUNCH 9304050072 930405 TECHNOLOGY ASK GROUP SAYS 3RD PERIOD NET FELL BELOW ESTIMATES BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL MOUNTAIN VIEW CALIF ASK GROUP INC SAID EARNINGS FOR ITS FISCAL THIRD QUARTER WERE FAR WORSE THAN EXPECTED A DISCLOSURE THAT SENT ITS STOCK DIVING 43 SEPARATELY ANOTHER BUSINESSSOFTWARE COMPANY SOFTWARE PUBLISHING CORP SAID AFTER THE MARKET CLOSED FRIDAY THAT ITS EARNINGS FELL BELOW ANALYSTS EXPECTATIONS IN NATIONAL OVERTHECOUNTER TRADING FRIDAY ASK CLOSED AT 1075 A SHARE DOWN 825 THE TUMBLE HELPED START A BROAD SLIDE IN TECHNOLOGY ISSUES WITH OTHER BAD NEWS COMING FROM DISKDRIVE MAKER CONNER PERIPHERALS INC WHICH ALSO SAID EARNINGS WOULD PLUNGE BELOW ANALYSTS EXPECTATIONS BECAUSE OF PRICE COMPETITION AND EXCESS CAPACITY IN THE INDUSTRY THE MARKET'S TREATING DISAPPOINTING EARNINGS VERY HARSHLY SAID KENNETH J BURKE AN ANALYST AT PACIFIC GROWTH EQUITIES IN SAN FRANCISCO ASK WHICH MAKES SOFTWARE CONTROLLING MANUFACTURING PROCESSES UNDER THE MANMAN/X BRAND NAME SAID THAT AN UNSPECIFIED BUT SIGNIFICANT AMOUNT OF LICENSE SALES DID NOT CLOSE FOR THE PERIOD ENDED MARCH 31 AS HAD BEEN EXPECTED IT EXPECTS TO REPORT BREAKEVEN RESULTS OR A LOSS ZACKS INVESTMENT RESEARCH INC HAD FORECAST PERSHARE EARNINGS OF 23 CENTS TO 32 CENTS A YEAR EARLIER ASK REPORTED NET INCOME OF ALMOST 2 MILLION OR NINE CENTS A SHARE ON REVENUE OF 1121 MILLION IT'S A DISAPPOINTMENT PIER CARLO FALOTTI PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THIS IS A LITTLE GLITCH ANALYSTS SAID THE DIVING STOCK DIDN'T REFLECT THE SOFTWARE MAKER'S LONGTERM PROFITABILITY BUT THE SKITTISHNESS OF INVESTORS IN A CHOPPY MARKET IT'S CRAZY SAID IRWIN SILVERBERG AN ANALYST AT BURNHAM SECURITIES IN NEW YORK THE BALANCE SHEET'S GOOD IT'S A WORLD CLASS OFFERING MR FALOTTI SAID THE COMPANY WAS TRYING TO FIGURE OUT WHY THE PROJECTED CLOSINGS DIDN'T HAPPEN ON TIME BUT DECIDED TO RELEASE THE DOWNSCALED ESTIMATES BEFORE THE REASON WAS LEARNED HE SAID THAT THE COMPANY'S PLANS ARE OTHERWISE ON TARGET AND THAT ITS TRANSITION AWAY FROM HARDWARE TO SOFTWARE WHERE LICENSE FEES HAVE BEEN FUELING GROWTH IS ON TRACK ALL THE CHANGES ARE IN PLACE WE'RE MOVING WELL HE SAID THE BUSINESS CLIMATE IS MORE OR LESS WHAT IT WAS EARLIER WE'RE DOING WHAT WE WANT TO BE DOING LAST MONTH ANALYSTS REDUCED EARNINGS ESTIMATES FOR ASK'S THIRD QUARTER THREE CENTS A SHARE TO 23 CENTS AND REVENUE FORECASTS BY 5 MILLION TO 115 MILLION BASED UPON FOREIGN CURRENCY WEAKNESS PARTICULARLY IN THE UK SOFTWARE PUBLISHING OF SANTA CLARA CALIF BLAMED ITS EXPECTED SHORTFALL IN FISCAL SECONDQUARTER REVENUE AND EARNINGS ON SURPRISINGLY SOFT REVENUE FROM INTERNATIONAL MARKETS AND PRICE PRESSURES IRFAN SALIM PRESIDENT AND CHIEF OPERATING OFFICER SAID THAT PERSHARE EARNINGS ARE ESTIMATED AT 15 CENTS TO 17 CENTS FOR THE PERIOD ENDED MARCH 31 AND THAT REVENUE WAS 31 MILLION TO 33 MILLION ANALYSTS SURVEYED BY ZACKS INVESTMENT RESEARCH INC HAD BEEN FORECASTING NET OF 30 CENTS TO 41 CENTS A SHARE IN THE YEARAGO PERIOD THE COMPANY REPORTED NET OF 41 MILLION OR 32 CENTS A SHARE ON REVENUE OF 434 MILLION FOR THE FIRST HALF THE COMPANY ESTIMATED EARNINGS AT 49 CENTS TO 51 CENTS A SHARE ON REVENUE OF 676 MILLION TO 696 MILLION A YEAR EARLIER NET WAS 82 MILLION OR 65 CENTS A SHARE ON REVENUE OF 845 MILLION SOFTWARE PUBLISHING STOCK IN NATIONAL OVERTHECOUNTER TRADING FINISHED AT 13 A SHARE DOWN 75 CENTS 9304050071 930405 QUARTERLY MUTUAL FUNDS REVIEW SOARING GOLD AND FOREIGN FUNDS EMERGE AS HEROES IN FIRST QUARTER BY ROBERT MCGOUGH STOCK MUTUAL FUNDS COOLED OFF FROM LAST YEAR'S HOT FINISH CHALKING UP A 329 GAIN FOR THE PAST THREE MONTHS AMID A RECORD FLOW OF MONEY INTO STOCK FUNDS NEARLY 19 BILLION IN JANUARY AND FEBRUARY ALONE DIVERSIFIED STOCK FUNDS AS A GROUP LAGGED BEHIND THE 436 TOTAL RETURN OF THE STANDARD & POOR'S 500STOCK INDEX STOCK FUNDS HANDILY BEAT THE 066 RETURN OF MONEY MARKET FUNDS IN THE QUARTER THE STRONG PERFORMANCE OF GOLD FUNDS UP 2169 AS WELL AS REALESTATE AND NATURALRESOURCES FUNDS SUGGESTS INFLATION IN THE WIND SAYS A MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES FOREIGNSTOCK FUNDS RACED AHEAD OF DOMESTIC FUNDS WITH JAPANESE AND CANADIAN FUNDS LEADING THE WAY SOME STOCK FUND MANAGERS THINK THAT FOREIGN MARKETS HOLD THE MOST PROMISE IN THE YEAR AHEAD REVERSING THEIR POOR PERFORMANCE OF RECENT YEARS WHILE THE FIRST QUARTER'S GAINS FOR DIVERSIFIED STOCK FUNDS WERE RESPECTABLE THEY ARE A FAR CRY FROM THE FOURTH QUARTER'S LEAP OF 904 MOREOVER BOND FUNDS WITH A 396 RETURN BEAT OUT STOCK FUNDS IN THE FIRST QUARTER LIPPER ANALYTICAL SAYS SOME STOCK FUND MANAGERS SOUND FRUSTRATED WHY DOESN'T THIS HUGE BUYING DRIVE THE MARKET HIGHER ASKS G KENNETH HEEBNER MANAGER OF CGM CAPITAL DEVELOPMENT UP 609 IN THE QUARTER PART OF THE EXPLANATION HE THINKS IS THAT COMPANIES ARE RUSHING TO SELL NEW STOCK WHENEVER A WAVE OF BUYING HITS AND LIFTS THE MARKET THERE'S A DELUGE OF STOCK OFFERINGS TO SOAK UP THE EXTRA CASH BUT THE INCOMING CASH REMAINS A FORCE TO BE RECKONED WITH IT'S A LIQUIDITYDRIVEN MARKET SAYS RICHARD WEISS COMANAGER OF STRONG COMMON STOCK FUND UP 960 IN THE QUARTER AS LONG AS THE MONEY KEEPS COMING IN THE MARKET WILL PROBABLY CONTINUE TO DO OK INVESTORS CERTAINLY HOPE SO MUCH OF THE TIDAL WAVE OF LIQUIDITY OR EXTRA CASH GOING INTO THE STOCK MARKET IS COMING OUT OF LESSRISKY LOWINTERESTRATE INVESTMENTS NOTABLY BANK DEPOSITS AND MONEY MARKET FUNDS BIGCOMPANY STOCKS FARED BETTER THIS PAST QUARTER THAN THE MIDSIZE AND SMALLER ISSUES THAT MANY MUTUAL FUNDS FAVOR SOME SMALLCOMPANY FUNDS INVESTING IN VALUE STOCKS WHICH LOOK INEXPENSIVE COMPARED WITH EARNINGS AND ASSETS HAD A STRONG QUARTER BUT MANY OTHER SMALLCOMPANY FUNDS INCURRED LOSSES AND THE GROUP IN A TURNAROUND FROM ITS SURGE AT THE END OF 1992 GAINED ONLY 202 ON AVERAGE THESE TOTAL RETURN FIGURES CALCULATED BY LIPPER ANALYTICAL INCLUDE BOTH PRICE CHANGE AND REINVESTED DIVIDENDS AMONG MAINSTREAM DIVERSIFIED STOCK FUNDS THE MOST CONSERVATIVE FARED BEST AS THE BIG DIVIDENDS PAID BY THEIR STOCKS LOOKED MORE AND MORE ATTRACTIVE WHEN BOND YIELDS PLUNGED EQUITY INCOME FUNDS HAD A TOTAL RETURN OF 608 IN THE QUARTER DESPITE THEIR FIRSTQUARTER GLEAM GOLD FUNDS ARE STILL THE WORSTPERFORMING GROUP OVER A DECADE'S TIME SOUTH AFRICAN GOLD MINING STOCKS RECENTLY BOOMED FOLLOWING A YEAR IN WHICH THINGS HAD GOTTEN SO BAD THEY COULDN'T GET WORSE SAYS VICTOR FLORES MANAGER OF UNITED SERVICES GOLD SHARES UP 3588 IN THE QUARTER WITH AN IMPROVEMENT IN THE POLITICAL CLIMATE THE SOUTH AFRICAN RAND SURGED AS DID PRICES OF HIGHYIELDING SOUTH AFRICAN STOCKS NORTH AMERICAN GOLD STOCKS WHICH ALSO MOVED UP IN THE QUARTER HAVE GOTTEN WAY AHEAD OF WHAT GOLD HAS DONE SAYS MR FLORES BUT HE EXPECTS MORE GAINS AHEAD FOR SOUTH AFRICAN GOLD STOCKS THE WORSTPERFORMING GROUP IN THE QUARTER WAS HEALTH AND BIOTECHNOLOGY FUNDS WHICH LOST 1411 LAST YEAR'S BLOODLETTING WORSENED IN THE NEW YEAR THESE FUNDS HAD BEEN AMONG THE BEST PERFORMERS IN THE PRIOR DECADE BUT THEIR STOCKS WERE UNDERMINED BY FEARS ABOUT THE PROSPECTIVE CLINTON OVERHAUL OF THE INDUSTRY THE OUTLOOK IS TERRIBLE FOR HEALTH CARE SAYS A DISHEARTENED JOHN KAWESKE COMANAGER OF FINANCIAL STRATEGIC HEALTH SCIENCES DOWN 2197 IN THE QUARTER WHILE THE GROUP'S STOCKS ALREADY REFLECT MUCH OF THE INDUSTRY'S TROUBLED FUTURE MR KAWESKE EXPECTS THEM TO PLUNGE FURTHER IN A FINAL CAPITULATION STAGE WHERE INVESTORS BELIEVE THIS IS THE WORST OF ALL WORLDS JAPANESE STOCK FUNDS CAME ROARING BACK GAINING 1719 IN THE QUARTER AND PERHAPS SIGNALING THAT THE LONG BEAR MARKET IN JAPAN HAS FINALLY ENDED IT'S BEEN KIND OF EXCITING SAYS ELIZABETH ALLAN MANAGER OF JAPAN FUND UP 1528 IN THE QUARTER WHILE A SURGING YEN BOOSTED THE VALUE OF US INVESTORS' ASSETS IN JAPAN STOCKS HAVE ALSO RISEN SHARPLY WITH TRADING VOLUME UNSEEN SINCE THE 1980S BUBBLE PERIOD MS ALLAN SAYS FOREIGNSTOCK FUNDS IN GENERAL OUTSTRIPPED THEIR DOMESTIC SIBLINGS AS CANADIAN EUROPEAN AND LATIN AMERICAN FUNDS BEAT THE AVERAGE RETURN FOR US STOCK FUNDS BOTH EUROPEAN AND LATIN AMERICAN FUNDS LOST MONEY IN THE 12 MONTHS THROUGH MARCH 31 HAVING SUFFERED THROUGH A DIFFICULT 1992 BUT EUROPEAN FUND MANAGERS IN PARTICULAR EXPRESSED HOPE THAT STOCKS WILL REBOUND THERE AS THE RECESSION IN EUROPE HITS BOTTOM EUROPE LOOKS GOOD NOT JUST RELATIVELY BUT ABSOLUTELY SAYS STEVEN CHAMBERLAIN MANAGER OF FINANCIAL STRATEGIC EUROPEAN PORTFOLIO UP 240 IN THE QUARTER REALESTATE FUNDS CONTINUED THEIR STRONG SHOWING GAINING 1509 IN THE QUARTER AND 2776 IN THE PAST 12 MONTHS THE REALESTATE STOCKS IN OUR PORTFOLIOS HAVE BEEN PERFORMING SPECTACULARLY WELL SINCE OCTOBER 1990 SAYS ROBERT STEERS COMANAGER OF COHEN & STEERS REALTY SHARES UP 2050 IN THE QUARTER REALESTATE STOCKS PRINCIPALLY REALESTATE INVESTMENT TRUSTS OR REITS CONTINUE TO REBOUND FROM THEIR LONG BEAR MARKET LASTING FROM MARCH 1987 THROUGH OCTOBER 1990 VIRTUALLY EVERY TRADITIONAL PROVIDER OF CAPITAL TO REAL ESTATE HAS PULLED OUT OF THE BUSINESS SAYS MR STEERS LEAVING THE REITS ABLE TO BUY PROPERTIES WITH INITIAL RENTS THAT EXCEED THE DIVIDENDS THEY PAY OUT TO INVESTORS A UNIQUE PHENOMENON IN REIT HISTORY HE SAYS FINANCIALSERVICES FUNDS CONTINUED THEIR STRONG GAINS FROM LAST YEAR WITH A TOTAL RETURN OF 1219 IN THE QUARTER ON AVERAGE A WIDE GAP BETWEEN SHORTTERM AND LONGTERM INTEREST RATES AND A BOTTOMING OF SOME REALESTATE MARKETS CONTINUED TO HELP THE BANKS AND THRIFTS HELD BY FINANCIALSERVICES FUNDS IN THE FIRST QUARTER WE HAD A DECENT BOND RALLY WHICH HELPED THESE STOCKS SAYS DAVID ELLISON MANAGER OF FIDELITY SELECT HOME FINANCE FORMERLY CALLED SELECT SAVINGS & LOAN NATURAL GAS PRICES FINALLY RALLIED AFTER A 12YEAR OVERSUPPLY GIVING GOOD GAINS TO NATURAL RESOURCES FUNDS SMALL NATURALGAS COMPANY STOCKS ARE TRADING AT AROUND SIX TIMES 1993 CASHFLOW ESTIMATES SAYS DANIEL RICE MANAGER OF METLIFESTATE STREET GLOBAL ENERGY AND CASH FLOW WILL GROW AT 15 TO 25 PER YEAR FOR THE FORESEEABLE FUTURE THAT MAKES IT VERY ATTRACTIVE RELATIVE TO THE MARKET FUNDS INVESTING IN VALUE STOCKS WHICH APPEAR INEXPENSIVE RELATIVE TO SUCH MEASURES AS EARNINGS OR ASSETS GREATLY OUTPERFORMED FUNDS INVESTING IN GROWTH STOCKS OF COMPANIES WITH FASTGROWING EARNINGS AN INDEX OF VALUE FUNDS HAD A GAIN OF 717 IN THE QUARTER ACCORDING TO LIPPER ANALYTICAL WHILE AN INDEX OF GROWTH FUNDS ACTUALLY LOST 066 MR LIPPER NOTED THAT MANY CYCLICAL STOCKS WHOSE EARNINGS ARE CLOSELY TIED TO THE ECONOMY ARE CONSIDERED VALUE STOCKS AND AS THE US ECONOMY CONTINUED ITS RECOVERY THESE COMPANIES HAVE BEEN SHOWING A SHARPER UPTURN IN EARNINGS THAN GROWTH COMPANIES IN THE ACCOMPANYING TABLE THERE IS A CATEGORY CALLED GROWTH THIS CATEGORY DOESN'T REFLECT THE PERFORMANCE OF FUNDS WITH A GROWTHSTOCK INVESTING STYLE LIPPER ANALYTICAL CLASSIFIES FUNDS BASED ON INVESTMENT OBJECTIVE NOT STOCKPICKING STYLE THUS FUNDS IN THE LIPPER GROWTH CATEGORY TEND TO PUT MORE EMPHASIS ON GROWTH OF CAPITAL RATHER THAN ON GENERATING DIVIDEND INCOME 9304050070 930405 INTERNATIONAL JAPANESE AUTO DEALERS TRY USING DEALS TO TURN AROUND MONTHS OF BAD SALES BY MASAYOSHI KANABAYASHI AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO BEATEN DOWN BY MONTHS OF BAD SALES JAPAN'S AUTO DEALERS ARE OFFERING JUICY DEALS TO LURE BUYERS FRIDAY THEY GOT SOME NEWS THAT SUGGESTS THEIR EFFORT IS PAYING OFF THE JAPAN AUTOMOBILE DEALERS ASSOCIATION SAID CAR AND TRUCK SALES INCHED UP 17 IN MARCH FROM A YEAR AGO THE FIRST GAIN IN NINE MONTHS SALES FELL TO SEVEN MILLION VEHICLES IN 1992 DOWN 10 FROM THE 1990 PEAK BUT MANUFACTURERS AND DEALERS SAY THE MARCH UPTURN IS A BLIP THE RESULT OF THEIR RACE TO PAD SALES AS THEY CLOSED THEIR BOOKS ON THE BLEAK FISCAL YEAR THAT ENDED MARCH 31 IT'S A TEMPORARY PHENOMENON SAYS FUJIO AOKI WHO RUNS A DEALERSHIP FOR HONDA MOTOR CO CARS OUTSIDE TOKYO ACTUALLY AUTOINDUSTRY PEOPLE SAY THEIR CRYSTAL BALLS SHOW A DARK NEARTERM FUTURE SALES WILL DECLINE IN THE FIRST HALF THEN STAY FLAT THROUGH THE END OF THE YEAR THAT IS BECAUSE THE JAPANESE HAVE BEEN SCARED STIFF BY WORKFORCE CUTS LOWER RAISES AND SLASHED OVERTIME PAY THESE DAYS CAR SHOPPERS ARE GRIPPED BY A PASSION FOR WARIYASUKAN OR BARGAIN FEELING A SENSE OF GETTING TOP VALUE FOR YOUR MONEY CHIKAO MIZUNO A 46YEAROLD WHITECOLLAR WORKER SAYS HE MAY REPLACE HIS AGING CAR WITH A TOYOTA MOTOR CORP MARK II A HIGHEND 26 MILLION YEN 22800 SEDAN THAT IS THE INDUSTRY'S HOTTEST SELLER IN A DISMAL YEAR ITS RESALE VALUE IS GOOD SAYS MR MIZUNO STILL HE IS GOING TO DRIVE A HARD BARGAIN IF THE DISCOUNT ISN'T BIG ENOUGH I'LL BUY ANOTHER MODEL WITH A BIGGER MARKDOWN HE IS EAGER TO DO BETTER THAN THE STANDARD 150000 YEN DISCOUNT THAT HE HEARS IS AVAILABLE BOWING TO WARIYASUKAN MAKERS AND DEALERS ARE LOADING THEIR CARS WITH FREE OR DISCOUNTED OPTIONS ONE NISSAN MOTOR CO DEALER IN CHIBA OUTSIDE TOKYO IS OFFERING A PRIMERA FOURDOOR SEDAN WITH SUCH OPTIONS AS ALUMINUM WHEELS FOG LAMPS AND A SPOILER FOR 1650000 YEN A CLAIMED SAVINGS OF ABOUT 300000 YEN OR MORE THAN 15 MR AOKI THE HONDA DEALER IS TOSSING IN A CD PLAYER AND OTHER OPTIONS WORTH 200000 YEN ON THE FOURDOOR ACCORD INSPIRE MAKERS ALSO ARE STRIPPING OPTIONS AND CUTTING PRICES ON A FEW MODELS IN FEBRUARY TOYOTA CAME OUT WITH A DRESSEDDOWN VERSION OF ITS ESTIMA MINIVAN TO BOOST SALES BY MAKING IT MORE AFFORDABLE THE NEW MODEL LISTS FOR 28 MILLION YEN VS 33 MILLION YEN FOR THE CONVENTIONAL VERSION DISCOUNTS AND SIMPLER CARS ARE ALL PART OF A MOVE BACK TO BASICS BY JAPANESE MANUFACTURERS AND DEALERS WHO WENT UPSCALE DURING THE FAT YEARS OF THE LATE 1980S FOR AN IDEA OF HOW THE MOOD CHANGED CONSIDER TOYOTA'S CROWN A LUXURY MODEL SOLD IN JAPAN FOR YEARS THE CROWN HAS BEEN NICKNAMED THE BOSS CAR BECAUSE IT IS POPULAR WITH RICH OWNERS OF SMALL BUSINESSES BUT IN JANUARY AND FEBRUARY SALES WERE DOWN 57 FROM A YEAR EARLIER TOYOTA'S CONSERVATIVELY STYLED MARK II HAS CAPTURED THE WARIYASUKAN MOOD PERFECTLY THE CAR IS POSITIONED BELOW THE CROWN AND PRICED ABOUT 20 LOWER BUT IT IS ALSO ROOMIER SALES ARE ZOOMING AND THE ORDER BACKLOG HAS REACHED 8300 CARS THE ONE TRULY HOT SEGMENT THESE DAYS IS RECREATIONAL VEHICLES A MUST FOR LOOKING COOL IN THE CITY STRONG SALES OF CARS SUCH AS MITSUBISHI MOTORS CORP'S PAJERO MONTERO IN THE US AND TOYOTA'S SURFER PUSHED UP THE SEGMENT'S SHARE OF JAPAN'S VEHICLE MARKET TO 176 IN 1992 FROM 99 IN 1989 IN THE BOOM YEARS SPENDTHRIFT JAPANESE THRONGED SHOWROOMS LIKE NEVER BEFORE MANY DEALERS REINED IN THEIR TRADITIONAL WAY OF SELLING CARS CALLING ON CUSTOMERS AT HOME AND SPIFFED UP THEIR SHOWROOMS NOW DEALERS ARE RETURNING TO THEIR DOORTODOOR ROOTS WITH A VENGEANCE KEIICHI IWAMURA WAS THE ONLY SALESMAN ON DUTY ONE RECENT SUNNY MORNING AT A TOYOTA DEALERSHIP OUTSIDE TOKYO CUSTOMERS DON'T SHOW UP IF WE WAIT FOR THEM HE SAYS SO WE'RE VISITING THEM ONE BY ONE MR IWAMURA SAYS HE CALLS ON BETWEEN 30 AND 50 PEOPLE A DAY FOR ALL OF THEIR EFFORTS RETAILERS REMAIN CAUTIOUS EVEN GLUM EVEN THE MARCH DISCOUNTING DIDN'T AFFECT SALES THAT MUCH ANALYSTS SAY MUCH OF THE GAIN CAME FROM TECHNICAL FACTORS INCLUDING 1992 TAX CHANGES THAT DEPRESSED SALES A YEAR AGO THERE'S A SIGN OF A TURNAROUND IN THE STATISTICS BUT THERE'S NO FEELING OF A SUBSTANTIAL RECOVERY SAYS IKUICHI KURITA PRESIDENT OF SAITAMA MAZDA CO A DEALERSHIP NORTH OF TOKYO HIS SALES PICKED UP IN MARCH BUT HE WORRIES THAT SALES WILL SLIDE IN APRIL BECAUSE CONSUMERS DID ALL OF THEIR BUYING DURING THE PROMOTIONS OF COURSE THERE ARE REASONS TO BELIEVE AUTO SALES COULD SOON TURN THE CORNER PETER BOARDMAN SENIOR ANALYST AT UBS PHILLIPS & DREW INTERNATIONAL LTD NOTES THAT INTEREST RATES ARE LOW AND POTENTIAL REPLACEMENT DEMAND IS RISING THE BUMPER CROPS OF VEHICLES SOLD IN 1988 AND 1990 ARE DUE FOR INSPECTIONS A SERVICE FOR WHICH CAR OWNERS HAVE TO PLUNK DOWN 1000 OR MORE AT INSPECTION TIME MANY JAPANESE OPT INSTEAD TO BUY NEW CARS WHICH DON'T HAVE TO BE TESTED WHAT'S MORE MANUFACTURERS ARE REDESIGNING SOME HIGHVOLUME CARS THIS YEAR INCLUDING TOYOTA'S SPORTY CELICA AND NISSAN'S HIGHPERFORMANCE SKYLINE IN JAPAN SALES TYPICALLY SOAR AFTER A MODEL CHANGE STILL MANY OF JAPAN'S CAR MAKERS ARE BRACING FOR MORE BLEAK EARNINGS AND ARE SCRAMBLING TO CUT COSTS MR BOARDMAN OF UBS PREDICTS DOMESTIC VEHICLE SALES WILL SLIDE 52 THIS YEAR TOSHIAKI YASUDA A NISSAN SPOKESMAN SAYS HE EXPECTS ANNUAL GROWTH OF JUST 1 OR 2 STARTING IN 1994 FOR THE REST OF THE DECADE SAYS MR YASUDA I DON'T THINK JAPANESE CAR SALES WILL REACH THE PEAK WE ATTAINED IN 1990 9304050069 930405 CORRECTIONS & AMPLIFICATIONS UNITED WAY OF AMERICA IS NOT THE SUBJECT OF INVESTIGATIONS BY THE US ATTORNEY'S OFFICE IN THE EASTERN DISTRICT OF VIRGINIA THE INTERNAL REVENUE SERVICE OR THE FEDERAL BUREAU OF INVESTIGATION UNITED WAY OF AMERICA SAID IT IS COOPERATING FULLY WITH ALL INVESTIGATIONS INTO ACTIVITIES OF ITS PAST EMPLOYEES AND IS ALSO COOPERATING WITH THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE IN ITS REVIEW OF THE NEW GOVERNANCE STRUCTURE OF UNITED WAY OF AMERICA FOR COMPLIANCE WITH NEW YORK STATE NONPROFIT LAW AN ARTICLE FRIDAY INDICATED THE ORGANIZATION WAS THE SUBJECT OF INVESTIGATIONS THE AMERICAN MEDICAL ASSOCIATION THE AMERICAN COLLEGE OF PHYSICIANS AND THE AMERICAN COLLEGE OF OBSTETRICIANS AND GYNECOLOGISTS DIDN'T SEND REPRESENTATIVES TO A FRIDAY NEWS CONFERENCE IN WASHINGTON THAT WAS HELD BY A GROUP CALLED PHYSICIANS FOR RU486 AN ARTICLE FRIDAY INCORRECTLY SAID THE GROUPS WERE SCHEDULED TO RELEASE STATEMENTS AT THE MEETING PIRELLI SPA NAMED LARRY JAMESON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PIRELLI CABLES NORTH AMERICA WITH RESPONSIBILITY FOR US AND CANADIAN OPERATIONS HE WAS PREVIOUSLY PRESIDENT OF BASF CORP'S COATINGS AND COLORANTS DIVISION AN ITEM IN THURSDAY'S WHO'S NEWS COLUMN FAILED TO MENTION HIS CANADIAN RESPONSIBILITIES AND INCORRECTLY DESCRIBED THE BASF DIVISION AS THE COATINGS AND COOLANTS BUSINESS 9304050068 930405 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE EXCHANGE RATE EIN CANADIAN DOLLARS FAS OF WEDNESDAY'S CLOSE USING THE FREE MARKET SPOT RATE