GATEWAY COMMUNICATIONS INC ATTEMPTING TO AVOID A PROXY FIGHT WITH ADAGE INC SAID IT AGREED TO NAME THREE ADAGESELECTED DIRECTORS TO ITS BOARD EXPANDING THE PANEL TO SEVEN MEMBERS GATEWAY OF IRVINE CALIF ADDED THAT IT EXPECTS TO POST A FIRSTQUARTER OPERATING LOSS AND SAID IT LAID OFF 11 EMPLOYEES OR ABOUT 14 OF ITS WORKFORCE GATEWAY SAID IT HASN'T YET DETERMINED THE AMOUNT OF THE EXPECTED LOSS IN THE YEAREARLIER PERIOD THE COMPANY HAD NET INCOME OF 408000 OR EIGHT CENTS A SHARE ON REVENUE OF 67 MILLION GATEWAY A SUPPLIER OF NETWORKING PRODUCTS FOR PERSONAL COMPUTERS BLAMED THE LAYOFFS ON CONTINUED RECESSIONARY BUSINESS CONDITIONS LOWER SHIPMENT LEVELS AND INTENSE PRICE COMPETITION ADAGE BASED IN WEST CHESTER PA PRODUCES RECYCLED PAPERBOARD AND CARTONS COLD DRAWN STEEL AND ELECTRONIC ACCESSCONTROL PRODUCTS AND SYSTEMS 9304050066 930405 QUARTERLY MUTUAL FUNDS REVIEW LARGE STOCK FUNDS FAILING TO KEEP UP WITH MARKET INDEXES NEW YORK THE US'S LARGEST STOCK MUTUAL FUNDS ARE FAILING TO KEEP UP WITH THE MARKET AVERAGES DURING THE PAST THREE MONTHS MOST OF THE 200 LARGEST FUNDS WHICH ARE SHOWN IN THE ADJACENT TABLE HAVE LAGGED BEHIND THE STANDARD & POOR'S 500STOCK INDEX WHICH WAS UP 436 IN THE FIRST QUARTER THE FUNDS ON AVERAGE ALSO FAILED TO BEAT THE S&P 500 DURING THE PAST 12 MONTHS BUT THERE WAS SOME CONSOLATION FOR INVESTORS IN THESE 200 MAMMOTH FUNDS WHICH AMONG THEM MANAGE 353 BILLION EQUAL TO 76 OF ALL STOCK MUTUAL FUND MONEY DURING THE FIRST QUARTER MOST OF THE LARGEST FUNDS DID BETTER THAN THE 329 AVERAGE GAIN FOR ALL STOCK MUTUAL FUNDS IN ADDITION MARKETBEATING PERFORMANCES WERE TURNED IN BY SOME OF THE COUNTRY'S VERY BIGGEST FUNDS INCLUDING FIDELITY MAGELLAN FUND WASHINGTON MUTUAL INVESTORS FUND VANGUARD WINDSOR FUND INCOME FUND OF AMERICA AND FIDELITY PURITAN FUND ALL OF WHICH MANAGE MORE THAN 5 BILLION MEANWHILE THE POOREST PERFORMERS WERE THE HEALTHCARE SPECIALTY FUNDS ACCORDING TO FIGURES FROM LIPPER ANALYTICAL SERVICES A SUMMIT NJ MUTUAL FUND RESEARCH FIRM DURING THE FIRST QUARTER MANY OF THESE FUNDS POSTED DOUBLEDIGIT LOSSES INCLUDING FINANCIAL STRATEGICHEALTH SCIENCES PORTFOLIO FIDELITY SELECTBIOTECHNOLOGY PORTFOLIO GT GLOBAL HEALTH CARE FUND AND FIDELITY SELECTHEALTH CARE PORTFOLIO THE ROTTEN PERFORMANCE OF HEALTHCARE STOCKS AND OTHER FASTGROWING COMPANIES HURT THE PERFORMANCE OF GROWTHSTOCK FUNDS WHICH BUY COMPANIES WITH RAPIDLY INCREASING PROFITS WELLKNOWN GROWTH FUNDS SUCH AS PASADENA GROWTH FUND T ROWE PRICE NEW HORIZONS FUND AND AIM WEINGARTEN FUND FELL IN THE QUARTER THE LIST OF THE 200 LARGEST FUNDS WHICH IS ARRANGED ALPHABETICALLY WAS SELECTED BASED ON YEAREND 1992 ASSETS THE SMALLEST FUND ON THE LIST IS IDEX II GROWTH PORTFOLIO WITH JUST UNDER 479 MILLION IN ASSETS WHILE THE LARGEST FUND IS FIDELITY MAGELLAN FUND WITH ASSETS OF MORE THAN 22 BILLION AMONG THE 200 BIGGEST FUNDS 151 SPECIALIZE IN LARGECOMPANY STOCKS 13 IN SMALLCOMPANY STOCKS AND 19 IN FOREIGN STOCKS THERE ARE ALSO 17 SECTOR FUNDS INCLUDING SIX HEALTHCARE FUNDS AND EIGHT UTILITY FUNDS ON AVERAGE THE COUNTRY'S LARGEST FUNDS CHARGE MODEST ANNUAL EXPENSES OF 099 WELL BELOW THE 149 AVERAGE FOR ALL STOCK FUNDS THE LARGEST FUNDS ALSO TEND TO TRADE STOCKS LESS ACTIVELY THAN OTHER FUNDS THEY HAVE AVERAGE TURNOVER OF 64 COMPARED WITH 80 FOR ALL STOCK FUNDS THREE OF THE COUNTRY'S BIGGEST FUNDS FIDELITY LOWPRICED STOCK FUND JANUS TWENTY FUND AND LINDNER DIVIDEND FUND STOPPED TAKING MONEY FROM NEW INVESTORS DURING THE QUARTER AS A RESULT THE LIST OF THE 200 LARGEST FUNDS NOW INCLUDES 11 FUNDS THAT ARE CLOSED 9304050065 930405 IBM WILL CUT BACK PAYMENTS BENEFITS FOR VOLUNTARY DEPARTURES AND LAYOFFS BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP SAID IT WILL CURTAIL THE PAYMENTS IT OFFERS TO EMPLOYEES WHO LEAVE THE COMPANY THE MEASURE WHICH TAKES EFFECT JULY 1 WILL REDUCE THE COST OF FUTURE INCENTIVE PROGRAMS TO BOOST VOLUNTARY DEPARTURES AND WILL CUT THE COST OF FUTURE LAYOFFS A SPOKESMAN SAID BUT THE CHANGE WHICH WAS POSTED ON INTERNAL BULLETIN BOARDS FRIDAY MAY ALSO INCREASE THE NUMBER OF EMPLOYEES WHO TAKE ADVANTAGE OF CURRENT OFFERS WHICH ARE MORE GENEROUS THE SAVINGS FOR IBM ARE HARD TO PROJECT BECAUSE THEY DEPEND ON FACTORS SUCH AS THE AGE OF DEPARTING EMPLOYEES AND BECAUSE THE COMPANY WON'T SAY HOW MANY MORE CUTS ARE ON THE WAY BUT THE ACTION IS LIKELY TO BE WELCOMED BY PEOPLE ON WALL STREET WHO OFTEN HAVE CRITICIZED THE COMPUTER GIANT AS BEING TOO GENEROUS IN INCURRING MULTIBILLIONDOLLAR CHARGES TO TRIM ITS BLOATED WORK FORCE THE DECISION TO CUT THE PAYMENTS WAS ONE OF THE FIRST MADE BY LOUIS GERSTNER SINCE HE BECAME IBM'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ON THURSDAY BUT ALTHOUGH MR GERSTNER REVIEWED THE MOVE HE DIDN'T INITIATE IT ACCORDING TO THE SPOKESMAN THIS HAD BEEN IN THE WORKS BEFORE HE SAID BEGINNING JULY 1 IBM WILL AWARD DEPARTING EMPLOYEES A MAXIMUM OF 26 WEEKS' PAY AND WILL OFFER THEM AS MUCH AS SIX MONTHS OF PAID MEDICAL COVERAGE THAT IS IN CONTRAST TO IBM'S CURRENT OFFERS OF AS MUCH AS A YEAR'S PAY AND 18 MONTHS OF MEDICAL COVERAGE IBM WILL KEEP ITS RETIREMENT BRIDGE WHICH ALLOWS EMPLOYEES WITHIN FIVE YEARS OF RETIREMENT TO TAKE AN UNPAID LEAVE UNTIL THEY'RE ELIGIBLE TO RETIRE WITH FULL PRIVILEGES BUT THE COMPANY NO LONGER WILL PROVIDE BENEFITS DURING THE LEAVE OR FIGURE EMPLOYEES' UNPAID TIME INTO ANY BENEFITS BASED ON LENGTH OF SERVICE SINCE LAST YEAR IBM MANAGERS HAVE BEEN URGING INDECISIVE EMPLOYEES TO TAKE THE COMPANY'S MONEY HINTING THAT FUTURE OFFERS WOULD BE FAR LESS ATTRACTIVE OR WORSE THAT LAYOFFS WERE ON THE WAY AS A RESULT MORE THAN 40000 PEOPLE LEFT IBM LAST YEAR DOUBLE THE COMPANY'S INITIAL ESTIMATE IBM WANTS TO TRIM AT LEAST 25000 PEOPLE THIS YEAR FROM ITS WORLDWIDE WORK FORCE WHICH WAS SLIGHTLY MORE THAN 300000 AT THE END OF 1992 ANALYSTS HAVE ESTIMATED THAT EVERY DEPARTURE WILL COST THE COMPANY ABOUT 120000 A NUMBER THAT JIBES WITH THE CHARGE OF ROUGHLY 3 BILLION THAT IBM TOOK IN DECEMBER TO COVER THE EXODUS IBM'S 1993 PROGRAMS AREN'T COMPANYWIDE AFFAIRS BUT ARE BEING TAILORED BY INDIVIDUAL UNITS THEY CURRENTLY OFFER ROUGHLY THE SAME INCENTIVES AS IN 1992 BUT SEVERAL PARTS OF THE COMPANY ALREADY HAVE BROKEN IBM'S HISTORICAL TABOO AGAINST LAYOFFS LAYOFFS DON'T NECESSARILY SAVE ANY MONEY BIG BLUE'S SEVERANCE PACKAGE IS ALMOST IDENTICAL TO ITS ARRAY OF INCENTIVES FOR VOLUNTARY DEPARTURES IN RECENT WEEKS IBM HAS SAID IT EXPECTS ITS 1993 DEPARTURES TO EXCEED 25000 BY AN UNDETERMINED AMOUNT BUT SO FAR IT THINKS THE OVERFLOW WILL BE COVERED BY THE 3 BILLION DECEMBER CHARGE SECURITIES ANALYSTS BY CONTRAST HAVE SAID THEY EXPECT AS MANY AS 40000 JOB CUTS THIS YEAR WHICH ARE LIKELY TO REQUIRE AN EXTRA CHARGE AND OVER THE NEXT FEW YEARS MOST ANALYSTS AGREE IBM MUST CUT A TOTAL OF 50000 TO 100000 JOBS MOST OF THESE CUTS WOULD COME UNDER THE NEW SEVERANCE POLICY PERHAPS SAVING IBM BILLIONS OF DOLLARS IBM HAD LOSSES IN PCS DURING 1992 BUT SAW A 50 SURGE IN SHIPMENTS DURING THE FOURTH QUARTER FOLLOWING A RETOOLING OF ITS ENTIRE PC STRATEGY MUCH OF THE GROWTH IN IBM'S PC SHIPMENTS HAS COME FROM ITS NEW LINE OF LOWPRICED PS/VALUEPOINT COMPUTERS THE COMPANY PLANS TO BROADEN THAT LINE TOMORROW ADDING MANY NEW MACHINES TO WHAT HAD BEEN A LIMITED FAMILY OF MODELS WE'RE EXPANDING THE LINE TO HIT EVERYBODY A SPOKESWOMAN SAID 9304050064 930405 BUSINESS BRIEF COLUMBIA GAS SYSTEM INC FIRM GETS NEW EXTENSION FOR FILING REVAMPING PLAN COLUMBIA GAS SYSTEM INC SAID THE FEDERAL BANKRUPTCY COURT IN WILMINGTON DEL GAVE IT ANOTHER EXTENSION OF THE EXCLUSIVITY PERIOD FOR ITS CHAPTER 11 REORGANIZATION PLAN THE COMPANY AND ITS COLUMBIA GAS TRANSMISSION CORP UNIT WERE GIVEN AN EXTENSION UNTIL JULY 23 THEY HAVE BEEN IN CHAPTER 11 BANKRUPTCYCOURT PROCEEDINGS SINCE JULY 1991 THE COURT HAD PREVIOUSLY GIVEN THE COMPANY AND UNIT FOUR EXTENSIONS UNDER WHICH THEY CAN SOLELY FILE PLANS OF REORGANIZATION WITHOUT ANY COMPETING PLAN FROM CREDITORS OR OTHERS COLUMBIA GAS RECENTLY INDICATED THAT IT WAS UNLIKELY TO BE ABLE TO HAVE AN APPROVED REORGANIZATION PLAN BEFORE YEAR'S END SAYING ITS TIMETABLE HAS BEEN SEVERELY DISRUPTED BY LEGAL AND OTHER ISSUES THE CHAPTER 11 FILING UNDER WHICH THE COMPANY CONTINUES TO OPERATE WITH COURT PROTECTION FROM ITS CREDITORS WAS PROMPTED BY EXPOSURE TO HUGE COSTS UNDER CONTRACTS TO PURCHASE NATURAL GAS AT PRICES WELL ABOVE CURRENT MARKET RATES 9304050063 930405 MARKETING CATERING TO COOKINGPHOBIC CUSTOMERS SUPERMARKETS STRESS CARRYOUT ADD CAFES BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL THE DRAWING CARD AT UKROP'S SUPERMARKETS IN RICHMOND VA ISN'T A WEEKLY SPECIAL ON A POUND OF BEEF OR HEAD OF LETTUCE IT'S THE PREPARED FOOD TARRAGON CHICKEN SALAD GRILLED SALMON FILLETS AND NEW ORLEANS JAMBALAYA THAT IS BOOSTING CUSTOMER TRAFFIC THOSE DISHES MOREOVER ARE AVAILABLE IN UKROP'S CAFE POPULAR EATERIES IN NINE OF THE CHAIN'S 21 STORES THAT ARE OPEN FOR BREAKFAST LUNCH AND DINNER CELEBRATED IN METROPOLITAN RICHMOND FOR ITS PREPARED FOODS UKROP'S LAST YEAR TOPPED THE CITY'S TRADITIONAL RESTAURANTS TO CLAIM THE MANTLE OF BEST TAKEOUT IN A READER SURVEY CONDUCTED BY A LOCAL PUBLICATION FOR JAMES UKROP OWNER OF THE CHAIN THE SUCCESS IS POETIC JUSTICE RESTAURANTS AND OTHER BUSINESSES HAVE BEEN DIGGING IN OUR POCKETS FOR YEARS HE SAYS AFTER DECADES OF STANDING BY AND WATCHING THE MCDONALD'S OF THE WORLD GOBBLE UP CONSUMERS' FOOD DOLLARS SUPERMARKET OPERATORS LIKE MR UKROP ARE FIGHTING BACK THEY ARE BEEFING UP DELI DEPARTMENTS REVAMPING MENUS AND DEVOTING MORE SPACE TO SHOWCASE A WIDER SELECTION OF PREPARED FOODS SOME ARE INSTALLING FOOD COURTS THAT BEAR A STRIKING RESEMBLANCE TO ONES FOUND IN SHOPPING MALLS WITH AMPLE SEATING SEPARATE CHECKOUT COUNTERS AND COLORFUL SIGNS IN PHOENIX FOR INSTANCE PATRONS OF ABCO FOODS CAN GRAB A BITE AT THE OASIS ISLANDS OF FOOD IN EIGHT OUTLETS THAT OFFER READYTOEAT ITEMS LIKE PRIME RIB AND FRIED OKRA ABOUT ONETHIRD OF THE HEB MARKETPLACE IN SAN ANTONIO IS DEVOTED TO PREPARED FOODS WITH INDIVIDUAL COUNTERS FOR PIZZA FAJITAS SEAFOOD AND CHINESE FARE SHOPPING CARTS EVEN COME EQUIPPED WITH TRAYS AND CUP HOLDERS SO CUSTOMERS CAN EAT WHILE THEY SHOP IN CANANDAIGUA NY A WEGMAN'S FOOD MARKETS UNIT HAS A FOOD COURT WITH PATIO SEATING THAT OFFERS HAMBURGERS AND STEAKS COOKED TO ORDER ON OUTDOOR GRILLS THE CHANGES REFLECT THE CONTINUED GROWTH OF TWOINCOME HOUSEHOLDS IN THE US AND THE DAILY CHALLENGE WITHIN MANY OF THOSE HOUSEHOLDS TO FIND TIME TO PREPARE MEALS SUPERMARKETS USED TO BE AMERICA'S PANTRY AND NOW THEY'RE BECOMING AMERICA'S KITCHEN SAYS HOWARD SOLGANIK A DAYTON OHIO CONSULTANT TO THE FOODSERVICE INDUSTRY IT'S NOT THAT AMERICANS ARE EATING LESS THEY'RE COOKING LESS FOR THE FIRST TIME LAST YEAR THE NUMBER OF MEALS PREPARED BY MICROWAVE OVENS DROPPED SLIGHTLY ACCORDING TO NPD GROUP INC AN ILLINOIS CONSULTING FIRM THAT TRACKS AMERICANS' EATING HABITS MANY FROZEN FOODS HAVE BEEN DECLINING IN SALES MEANWHILE PREPARED FOOD ALREADY A 6 BILLIONAYEAR BUSINESS FOR SUPERMARKETS CONTINUES TO GROW AT A DOUBLEDIGIT CLIP ACCORDING TO INDUSTRY CONSULTANTS SUPERMARKETS HAVE DISCOVERED WHAT THE RESTAURANT INDUSTRY ALREADY KNOWS PREPARED FOODS YIELD GREATER PROFITS ALTHOUGH THEY ACCOUNT FOR 29 OF THE TYPICAL STORE'S SALES TAKEOUT FOODS CAN CONTRIBUTE AN AVERAGE OF 64 TO PROFITS BECAUSE OF THE HIGH GROSS MARGINS ACCORDING TO SUPERMARKET BUSINESS FOOD COURTS OR SOCALLED SEGMENTED TAKEOUT OPERATIONS CAN ACCOUNT FOR AS MUCH AS 14 TO 20 OF A SUPERMARKET'S TOTAL SALES ACCORDING TO INDUSTRY OBSERVERS ALTHOUGH IN THE INITIAL STAGES OF DEVELOPMENT AMONG MANY SUPERMARKET RETAILERS THE FOOD COURT IS A PERMANENT AND GROWING TREND SAYS TIM HAMMONDS SENIOR VICE PRESIDENT OF THE FOOD MARKETING INSTITUTE A GROCERS' TRADE ASSOCIATION BASED IN WASHINGTON DC WHILE SOME GROCERS CONTINUE TO TEST THE CONCEPT ON A LIMITED BASIS CHAINS SUCH AS PUBLIX SUPER MARKETS INC BASED IN LAKELAND FLA HAVE ALREADY EMBRACED THE IDEA CURRENTLY PUBLIX HAS FOOD COURTS IN 23 OF ITS 403 STORES AND PLANS TO BUILD 14 OTHERS IN STORES BUILT THIS YEAR FOR ONE CHAIN LARRY'S MARKETS IN SEATTLE THE DECISION TO ESTABLISH A FOOD COURT GREW OUT OF UNSOLICITED CUSTOMER FEEDBACK TODAY PATRONS CAN STROLL THROUGH THE MARKET CAFE AN INDOOR FOOD PIAZZA AND PURCHASE ITEMS FROM THE DELI SUSHI BAR PIZZERIA CHOCOLATE AND ESPRESSO COUNTER CHICKEN ROTISSERIE MEXICAN FOOD TAQUERIA AND PREPACKAGED SALAD AND ENTREE SECTION BUT IT WASN'T ALWAYS THIS WAY PREVIOUSLY SOME OF THESE ITEMS WERE AVAILABLE IN LARRY'S MARKETS DELIS SEAFOOD DEPARTMENTS OR ISOLATED KIOSKS SCATTERED THROUGHOUT THE STORE BUT WHEN THE CHAIN INSTALLED A TAKEOUT KITCHEN AND SEATING AREA IN ITS STORES FIVE YEARS AGO CUSTOMERS BEGAN TO CONGREGATE THERE TO DRINK THE ESPRESSO OR EAT THE SUSHI THEY HAD PICKED UP IN OTHER SECTIONS IT FINALLY DAWNED ON US THAT PEOPLE WANTED TO GO TO VARIOUS AREAS OF OUR STORE PICK UP FOOD AND THEN SIT IN THE SEATING AREA TO EAT IT SAYS LARRY MCKINNEY PRESIDENT OF THE FIVESTORE CHAIN WHAT WE REALLY NEEDED TO DO WAS TO HAVE ALL THESE AREAS IN OUR FOOD SERVICE AREA LAST YEAR MR MCKINNEY DECIDED TO GROUP THE DIFFERENT TAKEOUTFOOD CATEGORIES IN ONE SECTION OF THE STORE CALLED THE MARKET CAFE WHILE HE DECLINES TO GIVE SALES FIGURES HE SAYS THE REVAMPED FOOD SERVICE HAS BROUGHT A LOT OF BUSINESS INTO HIS FIVE STORES OUR CUSTOMERS SHOWED US THEY WANTED TO TREAT IT LIKE A FOOD COURT AND THAT'S WHY WE'VE BEEN BRINGING EVERYTHING TOGETHER HE SAYS WHILE SOME GROCERS ARE GOING IT ALONE DEVELOPING THEIR OWN INHOUSE MENUS AND PRODUCTS OTHERS ARE PAIRING UP WITH NATIONAL RESTAURANTS OR FOODSERVICE COMPANIES SMITTY'S SUPER VALUCQ INC A 26STORE CHAIN BASED IN PHOENIX HAS CONTRACTED WITH A DIVISION OF MORRISON RESTAURANTS INC TO RUN ITS PRIMARY TAKEOUTFOOD OPERA TIONS FIVE SMITTY'S STORES HAVE FOOD COURTS WITH FRANCHISES OF NATIONAL CHAINS SUCH AS KFC TACO BELL I CAN'T BELIEVE IT'S YOGURT AND CINNABON AMONG OTHERS JOSEPH BYRUM PRESIDENT OF MORRISON'S HOSPITALITY GROUP THE DIVISION HANDLING THE ACCOUNT SAYS SALES IN THE NEW FOODCOURT AREA ARE UP 40 COMPARED WITH THE PREVIOUS INHOUSE FOODSERVICE OPERATION SMITTY'S HAD THE BIG FACTOR IS ITS NAME BRANDS AND NAME RECOGNITION SAYS MR BYRUM IT'S BUYING A PIZZA HUT PIZZA VS A SMITTY'S PIZZA BUT THERE ARE THOSE WHO REMAIN UNCONVINCED SUPERMARKETS RUN THE RISK OF LOSING THEIR OWN IDENTITY WHEN THEY PUT IN FRANCHISES OF NATIONAL CHAINS SAYS MR SOLGANIK THE FOODSERVICE CONSULTANT MANY OF THOSE THAT DO HE SAYS HAVE TRIED TO SEGMENT THEIR FOOD SERVICE BY THEMSELVES BUT HAVEN'T BEEN SUCCESSFUL NOT BECAUSE OF LACK OF CONSUMER ACCEPTANCE BUT BECAUSE OF EXECUTION AND NOW THEY'RE LOOKING FOR EASY ANSWERS MR SOLGANIK ADDS I DON'T THINK CONSUMERS ARE GOING TO DRIVE PAST GODFATHER'S PIZZA A FRANCHISED CHAIN ON THE CORNER TO GO TO GODFATHER'S PIZZA IN THE SUPERMARKETS INDEED SOME OF THE DIFFICULTIES IN BRINGING ESTABLISHED NAMES INTO A SUPERMARKET ARE EVIDENT IN MISSOURI THERE FRED BALL PRESIDENT OF BALL'S FOOD STORES INC IN KANSAS CITY IS TESTING A FOOD COURT CALLED THE SUPREME COURT IN ONE OF HIS PRICE CHOPPER STORES THE CONCEPT IS MARKETED BY ARA SERVICES INC THE COUNTRY'S SECONDLARGEST CONTRACT FEEDING COMPANY IT INCLUDES FRANCHISES OF CHICHI'S MEXICAN RESTAURANTE GODFATHER'S PIZZA FIFTH AND GRAND SANDWICHES WINGER'S CHICKEN AND RICKY SHAW'S CHINESE FOOD AFTER A YEAR MR BALL REMAINS UNDECIDED WHETHER TO EXPAND THIS BRANDED TAKEOUT OPERATION TO HIS OTHER 16 STORES WE HOPED THAT THE RESTAURANTS WOULD BRING US A LITTLE BIT MORE EXPERTISE BUT THEY WERE LOOKING FOR A LOT OF THE SAME ANSWERS WE WERE LOOKING FOR HE SAYS THEY DON'T DO A VERY GOOD JOB OF CARRYOUT IN THEIR RESTAURANTS THEY ARE ACTUALLY LEARNING WITH US AT THE SAME TIME 9304050062 930405 BUSINESS BRIEF TRANS WORLD AIRLINES CARRIER REPORTS NET LOSS WIDENED IN FOURTH QUARTER TRANS WORLD AIRLINES SAID ITS FOURTHQUARTER LOSS WIDENED TO 222 MILLION FROM 162 MILLION A YEAR EARLIER THE 1991 RESULTS INCLUDED A ONETIME CHARGE OF 272 MILLION THE MOUNT KISCO NY AIRLINE CURRENTLY REORGANIZING UNDER CHAPTER 11 OF THE BANKRUPTCY CODE SAID LAST YEAR'S FARE WARS RECESSION AND NEGATIVE PUBLICITY ASSOCIATED WITH ITS BANKRUPTCY FILING LED TO STEEPER LOSSES TWA'S COCHIEF EXECUTIVE OFFICERS ROBIN WILSON AND GLENN ZANDER ISSUED A STATEMENT SAYING THEY EXPECT THE AIRLINE TO EMERGE FROM CHAPTER 11 BY EARLY SUMMER AND TO EXPERIENCE A GREATLY IMPROVED PERFORMANCE IN 1993 OUR FOCUS AT TWA IS NOW ON THE FUTURE THE STATEMENT SAID ONCE TWA'S REORGANIZATION IS COMPLETE EQUITY IN THE CLOSELY HELD AIRLINE WILL BE SPLIT WITH ITS EMPLOYEES HOLDING A 45 STAKE AND CREDITORS TAKING 55 FOR ALL OF 1992 TWA REPORTED A NET LOSS 3177 MILLION COMPARED WITH A 1991 NET LOSS OF 345 MILLION IN 1991 THE AIRLINE HAD A ONETIME GAIN OF 453 MILLION FROM THE SALE OF ASSETS 9304050061 930405 BUSINESS BRIEF GITANO GROUP INC QUARTERLY DEFICIT WIDENED DUE TO RESTRUCTURING CHARGE GITANO GROUP INC REPORTED A 140 MILLION LOSS FOR THE FOURTH QUARTER REFLECTING A ONETIME RESTRUCTURING CHARGE OF 1005 MILLION A MAJOR LOSS HAD BEEN EXPECTED THE LOSS EQUAL TO 875 A SHARE IS SHARPLY WIDER THAN THE 1991 FOURTHQUARTER LOSS OF 667 MILLION OR 417 A SHARE THE CHARGE REFLECTED THE NEW YORK APPAREL MAKER'S COST OF CLOSING SOME RETAILING AND MANUFACTURING OPERATIONS AND INCLUDED ABOUT 50 MILLION FOR NONCASH WRITEDOWNS OF GOODWILL PLANT AND EQUIPMENT SALES FOR THE QUARTER DROPPED 22 TO 1462 MILLION FOR ALL OF 1992 GITANO'S LOSS WIDENED TO 2379 MILLION FROM 625 MILLION SALES ROSE 58 TO 8265 MILLION GITANO ALSO SAID IT IS NEGOTIATING DEFINITIVE AGREEMENTS WITH ITS LENDERS IN FEBRUARY WHEN IT ANNOUNCED THE FOURTHQUARTER CHARGE GITANO SAID ITS LENDERS HAD AGREED ON THE PRINCIPAL TERMS OF A 24MONTH EXTENSION OF GITANO'S SHORT AND LONGTERM DEBT 9304050060 930405 BUSINESS BRIEF TRAVELERS CORP LOSSES FROM WINTER STORM ARE ESTIMATED AT 18 MILLION TRAVELERS CORP SAID ITS LOSSES FROM THE WINTER STORM THAT HIT THE EAST AND GULF COASTS IN MARCH WILL TOTAL ABOUT 18 MILLION AFTER TAXES AND REINSURANCE THE HARTFORD CONN INSURANCE COMPANY SAID MOST OF THE CLAIMS RELATE TO WIND DAMAGE IN ALABAMA FLORIDA GEORGIA AND NORTH CAROLINA TRAVELERS ESTIMATED IT WILL RECEIVE 13000 AUTO HOMEOWNER AND COMMERCIALPROPERTY CLAIMS FOR THE FIRST QUARTER OF 1992 TRAVELERS POSTED NET INCOME OF 631 MILLION ON REVENUE OF 28 BILLION 9304050059 930405 HEARD ON THE STREET BARGAIN HUNTERS WAIT FOR THE SMOKE TO CLEAR BEFORE SADDLING UP WITH THE MARLBORO MAN BY ANITA RAGHAVAN AND SUSAN PULLIAM STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AND NOW A KIND WORD FOR PHILIP MORRIS THE FOOD AND TOBACCO COMPANY HAS JUST PLUNGED TO TRADE AT ONLY NINE TIMES REPORTED EARNINGS ITS STOCK IS YIELDING A FAT 53 IT IS LAUNCHING A FIERCE OVERHAUL OF ITS CIGARETTE BUSINESS SLASHING PRICES TO COUNTER COMPETITION TEMPTED DON'T BE TOO HASTY BARGAIN HUNTERS ARE TIPTOEING TOWARD THE STOCK BUT BEFORE THEY LOAD UP THEY WOULD LIKE TO SEE IT STABILIZE AFTER FRIDAY'S 23 DIVE WHEN YOU GET INTO THESE INSTITUTIONAL FREEFALLS YOU DON'T KNOW WHERE THE STOCK WILL END WARNS BILL NEWMAN WHO MANAGES 3 BILLION AT BANKERS TRUST AT PHILIP MORRIS SOME OF THE 800 INSTITUTIONS THAT OWN MORE THAN HALF THE SHARES MAY HEAD FOR THE EXITS IN COMING WEEKS MR NEWMAN WILL BE WAITING SURE PHILIP MORRIS FACES HEADWINDS HE SAYS THE SALESROBBING POTENTIAL OF SIN TAXES THE PROSPECT OF CONTINUED LITIGATION AND A DROP IN DOMESTIC SHIPMENTS OF CIGARETTES BUT HAVING BAILED OUT OF PHILIP MORRIS STOCK IN OCTOBER MR NEWMAN DEEMS IT WORTH A LOOK ONCE THE SELLING PANIC ENDS PHILIP MORRIS UNLEASHED FRIDAY'S PLUNGE BY TELLING ANALYSTS IN AN EARLY MORNING CONFERENCE CALL THAT IT WAS SLASHING MARLBORO PRICES ANALYSTS WHACKED 1993 PROFIT ESTIMATES TO ABOUT 514 A SHARE FROM 650 AND THE STOCK SANK 14 3/4 TO 49 3/8 ON 11TIMESNORMAL VOLUME OF 34 MILLION SHARES A FEW BIG INVESTORS WEREN'T FAZED ONE WAS BALTIMORE MONEY MANAGER ROBERT TORRAY WHO STARTED BUYING EARLY LAST WEEK AND CONTINUED SNAPPING UP SHARES FRIDAY I'M VERY VERY OPTIMISTIC ABOUT PHILIP MORRIS HE SAYS CUTTING THEIR MARGIN TO DEFEND THEIR MARKET SHARE IS VERY SMART ALSO SAVVY WAS PHILIP MORRIS'S TIMING ANALYSTS HAIL THE ANNOUNCEMENT AT THE START OF THE SECOND QUARTER AS A BACKHANDED FAVOR TO INSTITUTIONAL INVESTORS WHO WOULD HAVE HAD TO BOOK A FIRSTQUARTER LOSS OF 2775 A SHARE IF THE COMPANY HAD UNVEILED THE STRATEGY TWO DAYS EARLIER THIS WILL ALLOW EVERYONE WHO WANTS TO GET OUT THREE MONTHS TO DO IT SAID MR TORRAY PHILIP MORRIS SAYS THE TIMING WASN'T ORCHESTRATED THERE'S A NAGGING FEAR AMONG BIG INVESTORS THAT WITH PHILIP MORRIS NOW PROJECTING A 40 DROP THIS YEAR IN DOMESTIC TOBACCO OPERATING PROFIT COMPANYWIDE CASH FLOW MAY BE MORE VULNERABLE THAN PHILIP MORRIS SUGGESTS IN THE CONFERENCE CALL PHILIP MORRIS SAID ITS OVERALL OPERATING CASH FLOW WOULD STAY AT LAST YEAR'S LEVEL BUT DIDN'T SPELL OUT EXACTLY HOW A DROP FROM TOBACCO WOULD BE MADE UP AFTER PRAISING PHILIP MORRIS IN THIS NEWSPAPER LAST WEEK JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SOUNDS DOWNBEAT NOW HE SAYS DIVIDEND GROWTH MAY NOT BE AS GREAT AS INVESTORS HAD EXPECTED G KENNETH HEEBNER OF CAPITAL GROWTH MANAGEMENT IN BOSTON THINKS IT'S TOO EARLY TO BUY THE CENTERPIECE OF THE PHILIP MORRIS GROWTH STORY NAMELY PRICE INCREASES IN DOMESTIC TOBACCO IS NO LONGER IN EXISTENCE HE SAYS ONCE THE PRICECUTTING STARTS HOW LOW IS LOW BUT HE DOESN'T THINK PHILIP MORRIS IS HEADED THE WAY OF INTERNATIONAL BUSINESS MACHINES WITH IBM THERE IS A QUESTION IN MY MIND WHETHER THIS COMPANY IS GOING TO EXIST FIVE YEARS FROM NOW HE SAYS IN THE CASE OF PHILIP MORRIS IT IS A PRICING PROBLEM THIS COMPANY HAS BEEN A LEADER IN THE TOBACCO BUSINESS AND IT WILL CONTINUE TO BE A LEADER THE BIGGEST LOSERS IN A PRICE WAR ANALYSTS SAY COULD BE MAKERS OF DISCOUNT CIGARETTES SUCH AS BROOKE GROUP'S LIGGETT AND BA T INDUSTRIES' BROWN & WILLIAMSON TOBACCO WHOSE MARGINS ARE ALREADY NARROW RJR NABISCO SANK 1 1/4 TO 6 3/4 FRIDAY THE INROADS RJR NABISCO'S CAMEL BRAND MADE AGAINST MARLBORO LAST YEAR ARE OBVIOUSLY GOING TO BE MUCH HARDER WITH MARLBORO PRICING DOWN SAID ONE ANALYST MEANWHILE SOME INVESTORS WONDERED IF RJR MIGHT HAVE TO DITCH ITS PLAN TO RECLASSIFY ITS STOCK SPLITTING THE FOOD AND TOBACCO SEGMENTS I WOULD THINK THIS MIGHT SHAKE UP THE DEAL SAID ALBERT ZESIGER A PORTFOLIO MANAGER WITH BEA ASSOCIATES IN NEW YORK RJR DECLINED TO COMMENT SOME STOCKS COULD FARE WELL EVEN IN A PRICE WAR ONE INSTITUTIONAL INVESTOR WHO ASKED TO REMAIN ANONYMOUS SAID HE WAS INVESTING IN COMPANIES THAT CONTRACT TO BUY TOBACCO LEAF ABROAD AND RESELL IT TO US TOBACCO COMPANIES THESE COMPANIES WILL PROFIT HE SAID AS BIG CIGARETTE MAKERS TURN AWAY FROM MORE EXPENSIVE DOMESTICALLY GROWN TOBACCO IN FAVOR OF CHEAPER FOREIGN SUPPLIES THE COMPANIES THAT BUY FOREIGN TOBACCO INCLUDE UNIVERSAL CORP STANDARD COMMERCIAL AND DIBRELL BROTHERS OTHER BIG INVESTORS SEE BARGAINS IN AMERICAN BRANDS A TOBACCO CONCERN AND ESPECIALLY LOEWS CORP WHICH OWNS LORILLARD BOTH STOCKS WERE HIT HARD FRIDAY ON THE IDEA THAT THEY WILL SUFFER IN A PRICE WAR BUT SOME BIG MONEY MANAGERS SAID INVESTORS OVERREACTED MAKING THE STOCKS CHEAP STEVEN E LEVINGSTON CONTRIBUTED TO THIS ARTICLE 9304050058 930405 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMERICAN SAFETY RAZOR CO AN INITIAL OFFERING OF FIVE MILLION SHARES AUDIO/VIDEO AFFILIATES INC AN OFFERING OF TWO MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC AND FURMAN SELZ INC BLACKEYED PEA RESTAURANTS INC AN INITIAL OFFERING OF 154 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO WERTEIM SCHRODER & CO INC AND MONTGOMERY SECURITIES GRAND CASINOS INC A SHELF OFFERING FOR TWO MILLION WARRANTS TO PURCHASE GRAND CASINO COMMON STOCK AND AN EXCHANGE OFFER OF 115 MILLION OF 125 FIRST MORTGAGE NOTES TO BE EXCHANGED FOR IDENTICAL NOTES WHICH WERE FREELY TRADEABLE MEN'S WEARHOUSE AN OFFERING OF 750000 COMMON SHARES VIA BEAR STEARNS & CO INC MOHAWK INDUSTRIES INC AN OFFERING OF TWO MILLION COMMON SHARES VIA FIRST BOSTON CORP KIDDER PEABODY & CO AND WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS PENN TRAFFIC CO AN AMENDMENT TO A PREVIOUSLY FILED REGISTRATION STATEMENT TO RAISE ITS PROPOSED OFFERING TO 400 MILLION IN SENIOR SUBORDINATED NOTES FROM 300 MILLION VIA GOLDMAN SACHS STAODYN INC AN EXTENSION OF THE EXPIRATION DATE OF ITS WARRANTS OUTSTANDING TO JUNE 19 1994 FROM JUNE 19 1993 USX CORP THE PARENT OF US STEEL AND MARATHON OIL 750 MILLION OF DEBT 9304050057 930405 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AT LEAST A MILLION EUROPEANS TOOK TO THE STREETS IN ABOUT 150 CITIES TO PROTEST THEIR GOVERNMENTS' FAILURE TO HALT STEEP INCREASES IN UNEMPLOYMENT DEMONSTRATIONS STRIKES AND WORK STOPPAGES FRIDAY STRETCHED FROM LONDON TO ROME AS ECONOMIC GROWTH HAS SLUMPED EUROPEAN COMMUNITY UNEMPLOYMENT IS EXPECTED TO AVERAGE 11 THIS YEAR IN BRITAIN A WALKOUT BY RAIL WORKERS HALTED TRAINS AND COAL MINERS AND LONDON BUS DRIVERS STRUCK OVER JOB AND PAY CUTS IN ITALY MAIL AND OTHER PUBLICSECTOR EMPLOYEES STAYED AWAY FROM WORK AND TRANSIT SERVICES WERE HALTED IN EASTERN GERMANY ENGINEERING AND STEELWORKERS STAGED A SECOND DAY OF WILDCAT STRIKES OVER PAY DEMONSTRATORS ALSO TURNED OUT BY THE THOUSANDS IN BELGIUM THE NETHERLANDS PORTUGAL SPAIN AND GREECE SEPARATELY IN UKRAINE COAL MINERS WENT ON STRIKE OVER WAGES AND WORKING CONDITIONS AFTER UNIONGOVERNMENT TALKS FAILED BETWEEN 22 AND 42 OF 251 PITS WERE IDLED HUNGARIANS HID 34 BILLION IN INCOME FROM THE TAXMAN LAST YEAR CONFOUNDING EFFORTS TO BALANCE THE BUDGET DEFICIT THE GOVERNMENT SAID UNREPORTED INCOME IN THE CASHDOMINATED ECONOMY EQUALS 11 OF GROSS DOMESTIC PRODUCT THE TAX AGENCY SAID A DECISION LAST WEEK BY THE COUNTRY'S HIGHEST COURT WOULD HURT EFFORTS TO IMPROVE TAX COLLECTIONS THE COURT RULED THAT THE STATE CAN'T COMPEL TAXPAYERS TO DECLARE THEIR ASSETS SAYING THIS WOULD VIOLATE PRIVACY RIGHTS HUNGARY HAD ALREADY SPENT 23 MILLION PRINTING DECLARATION FORMS PASSENGER TRAFFIC ON EUROPE'S BIGGEST AIRLINES ROSE 5 IN FEBRUARY FROM A YEAR EARLIER ON EUROPEAN ROUTES TRAFFIC CLIMBED 77 BOOSTED BY PROMOTIONAL FARES IN A TRADITIONALLY SLACK MONTH BUT AIRPLANES WERE ONLY HALF FULL SAID THE 23MEMBER ASSOCIATION OF EUROPEAN AIRLINES TRAFFIC ON LUCRATIVE NORTH ATLANTIC ROUTES GREW ONLY 1 AND ON AFRICAN ROUTES EASED 03 CARGO SLIPPED 07 A BRAZILIAN FEDERAL COURT SUSPENDED THE SALE OF THE COUNTRY'S LARGEST STEEL MILL AT AUCTION ON RIO DE JANEIRO'S STOCK EXCHANGE MORE THAN 200 BIDDERS WERE READY PETITIONS TO THE COURT TO BLOCK THE SALE OF NATIONAL STEEL CO IN VOLTA REDONDA 80 MILES WEST OF RIO CLAIMED THE GOVERNMENT UNDERVALUED THE COMPANY AT 16 BILLION AND SOUGHT TO REQUIRE THAT 58 MILLION BE SET ASIDE TO CLEAN UP ENVIRONMENTAL DAMAGE CAUSED BY THE MILL THE GOVERNMENT HAD PROPOSED TO SELL 65 OF THE COMPANY'S COMMON SHARES FOR AT LEAST 122 BILLION ITALY'S GROSS DOMESTIC PRODUCT LAST YEAR GREW JUST 09 SLOWING FROM 13 IN 1991 THE GOVERNMENT EXPECTS THE ECONOMY IN 1993 MAY STAGNATE OR GROW NO MORE THAN 05 INFLATION FELL TO 54 FROM 64 IN 1991 AND THEN TO A 42 ANNUAL RATE LAST MONTH FROM 45 IN FEBRUARY DESPITE THE LIRA'S 20 DEPRECIATION AGAINST EUROPEAN CURRENCIES SINCE SEPTEMBER THOUGH THAT COULD BOOST 1993 EXPORTS TO 8 TRILLION LIRE 504 BILLION FROM 3 TRILLION LIRE IN 1992 INFLATION COULD RUN AT 5 THIS YEAR WITH LESS DISPOSABLE INCOME AND HIGHER UNEMPLOYMENT CONSUMER SPENDING IS SEEN FALLING FOR THE FIRST TIME IN TWO DECADES CHINA APPOINTED 49 HONG KONG ADVISERS IN ANOTHER MOVE TO BYPASS BRITAIN IN PREPARING FOR THE COLONY'S 1997 TRANSFER TO BEIJING'S CONTROL THEY JOIN 43 ADVISERS APPOINTED IN 1992 TO TWOYEAR TERMS CHINA FOR MONTHS HAS FOUGHT A PROPOSAL BY HONG KONG GOV CHRIS PATTEN TO EXPAND VOTER PARTICIPATION IN LEGISLATIVE ELECTIONS THE BUSINESS COMMUNITY IS SPLIT ON PURSUING DEMOCRATIC REFORMS EVEN THOUGH CHINA HAS PROMISED HONG KONG MUCH LOCAL AUTONOMY FOR 50 YEARS AFTER THE TRANSFER THOUGH MR PATTEN WELCOMED A BROADER PANEL TO ADVISE CHINA IT COULD UNDERMINE BRITAIN'S AUTHORITY IN HONG KONG FRENCH PRIME MINISTER EDOUARD BALLADUR FULFILLING A VOW OF THE NEW CENTERRIGHT COALITION ORDERED LEGISLATION TO MAKE THE BANK OF FRANCE INDEPENDENT REFORM THE STATE FINANCIAL INSTITUTION CAISSE DES DEPOTS & CONSIGNATIONS AND PRIVATIZE BANKS INSURERS AND INDUSTRIAL COMPANIES THE CENTRAL BANK MOVE IS INTENDED TO HELP THE FRENCH FRANC ON FOREIGNEXCHANGE MARKETS BY STRENGTHENING CONFIDENCE IN THE CURRENCY AN INDEPENDENT BANK WOULD ELIMINATE GROUNDS FOR SPECULATION THAT FRANCE MIGHT DEVALUE THE FRANC TO GET RELIEF FROM HIGH INTEREST RATES MR BALLADUR ALSO REQUESTED A REVISED 1993 BUDGET TO CUT SPENDING BY AT LEAST 20 BILLION FRANCS 373 BILLION THE PREVIOUS SOCIALIST GOVERNMENT'S BUDGET ASSUMED A DEFICIT OF 165 BILLION FRANCS BUT FRANCE'S ECONOMIC SLOWDOWN COULD WIDEN THAT GAP TO 300 BILLION FRANCS OR MORE THE GOVERNMENT ALSO WILL SEEK WAYS TO EASE FINANCING FOR BUSINESSES FOR EXAMPLE BY ELIMINATING THEIR ONEMONTH WAIT FOR REIMBURSEMENT OF VALUEADDED TAXES SWEDEN'S PARLIAMENT APPROVED A GOVERNMENT PROPOSAL TO CUT MONTHLY UNEMPLOYMENT BENEFITS TO 80 OF FORMER PAY FROM 90 EFFECTIVE JULY 1 QUEEN ELIZABETH II AGAIN TOPPED THE SUNDAY TIMES NEWSPAPER'S ANNUAL LIST OF BRITAIN'S 400 RICHEST PEOPLE HER ASSETS FELL TO 75 BILLION FROM 10 BILLION AS THE PROPERTY AND ART MARKETS DECLINED HER PERSONAL WEALTH WAS AT LEAST 680 MILLION AMONG ENTERTAINERS FORMER BEATLE PAUL MCCARTNEY LED WITH 600 MILLION RANKING 19TH OVERALL 9304050056 930405 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES IS BEING OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1511 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 500 MILLION MARKS OF 6 3/4 EUROBONDS DUE APRIL 29 2003 AT ISSUE PRICE 10110 VIA DEUTSCHE BANK AG YIELD 683 AT COMANAGERS' BREAKEVEN PRICE OF 9945 SPREAD OF 13 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT NOTE REPUBLIC OF VENEZUELA SOVEREIGN 150 MILLION MARKS OF 10 1/4 EUROBONDS DUE MAY 5 1998 AT ISSUE PRICE PAR VIA COMMERZBANK AG YIELD 1085 AT BREAKEVEN 97775 PRICE FOR COMANAGERS A SPREAD OF 456 BASIS POINTS ABOVE COMPARABLE GERMAN BUND WEST/LB FINANCE NETHERLANDS NV GERMAN PARENT 300 MILLION GUILDERS OF 7 EUROBONDS DUE APRIL 29 2003 AT ISSUE PRICE 10105 VIA ING INVESTMENT BANK REOFFERED AT 10035 TO YIELD 695 MARGIN 28 BASIS POINTS ABOVE GOVERNMENT'S 6 1/2 BONDS DUE APRIL 2003 GUARANTOR WESTDEUTSCHE LANDESBANK GIROZENTRALE DE NATIONALE INVESTERINGSBANK NETHERLANDS 150 MILLION GUILDERS OF 6 5/8 EUROBONDS DUE MAY 4 1999 AT ISSUE PRICE 10070 VIA ABN AMRO BANK NV REOFFERED AT 9990 TO YIELD 6646 MARGIN 13 BASIS POINTS ABOVE THE DUTCH GOVERNMENT'S 7 BONDS DUE MARCH 1999 SHELL AUSTRALIA LTD UK /NETHERLANDS PARENT 100 MILLION AUSTRALIAN DOLLARS OF 7 1/4 EUROBONDS DUE MAY 13 1998 AT ISSUE PRICE 10045 VIA HAMBROS BANK LTD YIELD 758 AT COMANAGERS' BREAKEVEN PRICE SPREAD 0325 POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT NOTE CONTROLADORA COMERCIAL MEXICANA SA DE CV MEXICO 130 MILLION OF 8 3/4 EUROBONDS DUE APRIL 21 1998 AT ISSUE REOFFER PRICE 99326 VIA CITIBANK INTERNATIONAL PLC YIELD 892 SEMIANNUAL SPREAD 370 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE NATIONAL BANK OF HUNGARY HUNGARY 100 MILLION SWISS FRANCS OF 7 1/4 PUBLIC BONDS DUE JUNE 7 2000 PRICED AT 100 3/4 VIA SWISS VOLKSBANK HAUTSDESEINE FRANCE 40 MILLION SWISS FRANCS OF 4 3/4 PRIVATELY PLACED NOTES DUE APRIL 23 2003 PRICED AT 101 1/2 VIA UNION BANK OF SWITZERLAND 9304050055 930405 QUARTERLY MUTUAL FUNDS REVIEW IN FUND RESULTS 2+2 CAN EQUAL 3 OR 5 BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THERE ARE LIES DAMNED LIES AND MUTUAL FUND STATISTICS HOW SO CONSIDER THE QUESTION OF WHETHER STOCK FUNDS HAVE OUTPERFORMED THE MARKET THIS IS MORE THAN JUST AN ACADEMIC ISSUE AFTER ALL IF STOCK FUNDS TEND TO UNDERPERFORM THE MARKET THEN PRUDENT INVESTORS SHOULD CONSIDER BUYING AN INDEX FUND WHICH SIMPLY BUYS THE STOCKS THAT MAKE UP A MARKET INDEX AND THEREBY SEEKS TO REPLICATE THE INDEX'S PERFORMANCE HOW HAVE STOCK FUNDS FARED COMPARED WITH THE MARKET IT ALL DEPENDS ON WHICH SET OF STATISTICS YOU LOOK AT CONSIDER FOR INSTANCE THE 20 YEARS ENDED DECEMBER 1992 A PERIOD THAT INCLUDED THE SAVAGE 197374 BEAR MARKET THE RIPROARING 197583 SMALLSTOCK BULL MARKET THE 1987 MARKET CRASH THE LONG 1980S BULL MARKET FOR LARGE COMPANY STOCKS AND THE RECENT SMALL STOCK REVIVAL TO GET A HANDLE ON STOCK FUND PERFORMANCE DURING THIS TURBULENT PERIOD YOU COULD SIMPLY LOOK AT THE RESULTS FOR THE 224 DIVERSIFIED US STOCK FUNDS THAT WERE AROUND FOR THE ENTIRE PERIOD FUND RESEARCHERS LIPPER ANALYTICAL SERVICES CALCULATES THAT THESE FUNDS GAINED 118 A YEAR OVER THE PAST 20 YEARS IF YOU FIGURE IN BOTH SHAREPRICE GAINS AND REINVESTED DIVIDENDS THAT'S BETTER THAN THE 113 A YEAR GAIN FOR THE STANDARD & POOR'S 500STOCK INDEX WHICH REFLECTS THE STOCK MARKET PERFORMANCE OF 500 LARGE COMPANIES IT ALSO BEATS THE 114 ANNUAL RETURN FOR THE WILSHIRE 5000 WHICH INCLUDES ALL US EXCHANGETRADED STOCKS INCLUDING SMALLER COMPANIES TRADED ON THE NASDAQ MARKET SO STOCK FUNDS HAVE OUTPERFORMED THE MARKET RIGHT NOT SO FAST BY LOOKING JUST AT THE RESULTS FOR FUNDS THAT WERE AROUND FOR THE ENTIRE 20YEAR PERIOD YOU IGNORE THE PERFORMANCE OF THE FUNDS THAT HAVE BEEN LAUNCHED IN THE PAST 20 YEARS IF YOU INCLUDE THE RESULTS FOR THE FUNDS THAT WERE LAUNCHED IN THE PAST 20 YEARS AND ARE STILL AROUND TODAY THE AVERAGE DROPS A TAD TO 117 A YEAR ACCORDING TO LIPPER ANALYTICAL THAT'S STILL MARGINALLY BETTER THAN THE S&P 500 WITH ITS 113 AVERAGE ANNUAL GAIN THE 117 FIGURE WAS CALCULATED BY CONSIDERING THE CALENDAR YEAR PERFORMANCE FOR ALL FUNDS THAT WERE AROUND IN EACH OF THE PAST 20 YEARS BUT EVEN THIS NUMBER IS SKEWED IT INCLUDES ONLY THOSE FUNDS THAT ARE STILL AROUND TODAY AND IGNORES THOSE THAT HAVE BEEN LIQUIDATED OR MERGED OUT OF EXISTENCE AS A CONSEQUENCE THE 117 FIGURE SUFFERS FROM WHAT STATISTICIANS CALL SURVIVORSHIP BIAS DON'T BELIEVE EVERYTHING YOU READ ABOUT FUND PERFORMANCE SAYS JOHN BOGLE CHAIRMAN OF THE VANGUARD GROUP THE FUND INDUSTRY'S THIRDLARGEST MUTUAL FUND COMPANY THERE'S REALLY NO SENSIBLE WAY TO LOOK AT FUND PERFORMANCE WITHOUT CONSIDERING SURVIVORSHIP BIAS ROUGHLY FOUR OF EVERY 10 FUNDS THAT WERE AROUND IN THE MID1970S AREN'T AROUND TODAY WHAT HAPPENS IF YOU CONSIDER THE PERFORMANCE OF THESE NOWMORIBUND FUNDS WHEN CALCULATING STOCK FUND RESULTS FOR THE PAST 20 YEARS THE AVERAGE DROPS DRAMATICALLY TO JUST 105 A YEAR WELL BELOW THE S&P 500 AND THE WILSHIRE 5000 THE DIFFERENCE BETWEEN THE 105 A YEAR EARNED BY STOCK FUNDS AND THE 113 A YEAR EARNED BY THE S&P 500 MAY SEEM SMALL BUT SAYS MR BOGLE COMPOUNDED OVER 20 YEARS THE DIFFERENCE IS STAGGERING FOR INSTANCE 10000 INVESTED FOR 20 YEARS AT 105 A YEAR WOULD GROW TO LESS THAN 74000 BUT AT 113 A YEAR THAT 10000 WOULD GROW TO MORE THAN 85000 THE RELATIVELY POOR PERFORMANCE OF STOCK FUNDS IS EASILY EXPLAINED FUNDS TEND TO LAG BEHIND THE MARKET AVERAGES BECAUSE THEY INCUR TRANSACTION COSTS WHEN TRADING STOCKS AND BECAUSE THEY CHARGE ANNUAL EXPENSES WHICH AVERAGE 149 ANNUALLY IN ADDITION FUND PERFORMANCE IS HURT BECAUSE FUNDS TEND TO HOLD CASH IN THEIR PORTFOLIOS TO MEET REDEMPTIONS BY DEPARTING SHAREHOLDERS THIS ACTS AS A DRAG ON FUND PERFORMANCE WHEN STOCK PRICES ARE RISING THE IMPLICATION IT MAKES SENSE TO INDEX AT LEAST PART OF YOUR MONEY SAYS WILLIAM DROMS A PROFESSOR OF FINANCE AT GEORGETOWN UNIVERSITY IT'S NOT LIKELY THAT OVER A LONG PERIOD OF TIME YOU'LL DO A LOT BETTER THAN AVERAGE IF YOU INVEST IN FUNDS RUN BY ACTIVE STOCKPICKERS UNLIKE ACTIVELY MANAGED STOCK FUNDS INDEX FUNDS DO LITTLE TRADING THEY TYPICALLY HAVE ROCKBOTTOM ANNUAL EXPENSES AND THEY KEEP CASH HOLDINGS TO A BARE MINIMUM AS A RESULT INDEX FUNDS ARE ABLE TO GENERATE RETURNS THAT CLOSELY CORRESPOND TO THE MARKET INDEX THAT THEY ARE SEEKING TO MATCH VANGUARD'S MR BOGLE THINKS THAT INVESTORS SHOULD CONSIDER INDEXING THE ENTIRE US MARKET BY BUYING A FUND THAT TRACKS THE WILSHIRE 5000 HE ALSO THINKS INVESTORS SHOULD CONSIDER INDEXING FOREIGN MARKETS BUT HE WOULDN'T PUT MORE THAN 20 OF AN INDEX PORTFOLIO INTO FOREIGN STOCKS BY AN AMAZING COINCIDENCE VANGUARD GROUP HAPPENS TO OFFER ALL THE FUNDS NEEDED TO IMPLEMENT MR BOGLE'S STRATEGY WHAT CAN I SAY SAYS VANGUARD'S CHAIRMAN I HOPE THE COMPETITORS WILL WAKE UP AND ALSO MAKE THESE FUNDS AVAILABLE HAVE STOCK FUNDS BEATEN THE MARKET IT ALL DEPENDS WHICH STOCK FUNDS YOU LOOK AT SHOWN BELOW ARE ANNUALIZED RESULTS FOR THE 20 YEARS ENDED DEC 31 1992 9304050054 930405 ABBEY HEALTHCARE LIFTS LIFETIME BID TO 2613 MILLION BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL ABBEY HEALTHCARE GROUP INC INCREASED ITS UNSOLICITED OFFER FOR LIFETIME CORP TO 2613 MILLION OR 2750 A SHARE IN CASH AND STOCK FROM 220 MILLION OR 2350 A SHARE TIMOTHY AITKEN CHAIRMAN OF ABBEY COSTA MESA CALIF SAID THE HOME HEALTHCARE CONCERN HASN'T YET DETERMINED WHAT PORTION OF THE PURCHASE PRICE WILL BE IN CASH THAT DEPENDS ON THE LIFETIME SHAREHOLDERS MANY OF WHOM WE'VE SPOKEN TO HE SAID IT'S LIABLE TO BE HALF THE PURCHASE PRICE THOUGH IT MAY IMPROVE ON THE SHARE SIDE LIFETIME'S BOARD HAD REJECTED THE 2350ASHARE OFFER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY LIFETIME SHARES CLOSED AT 2350 UP 1375 ABBEY SHARES CLOSED FRIDAY AT 1850 DOWN 1125 IN OVERTHECOUNTER TRADING IN A LETTER TO LIFETIME'S BOARD MR AITKEN SAID THAT BASED ON THE SYNERGIES WE SEE FROM THE COMBINATION FAILURE TO EXPLORE IN DETAIL THE BENEFITS OF A MERGER WOULD BE IRRESPONSIBLE LIFETIME IS A BOSTONBASED PROVIDER OF HOME HEALTH CARE THAT IS MORE THAN THREE TIMES THE SIZE OF ABBEY DISCUSSING THE CURRENT INDUSTRY ENVIRONMENT MR AITKEN SAID IN HIS LETTER THAT ABBEY WILL MEET THIS CHALLENGE WITH OR WITHOUT LIFETIME'S COOPERATION HE DECLINED TO SAY WHETHER THAT MEANT ABBEY WOULD BE WILLING TO LAUNCH A HOSTILE TENDER OFFER FOR LIFETIME I THINK THE LANGUAGE IS DELIBERATELY THE WAY IT IS HE SAID YOU'RE CORRECT TO NOTE ITS AMBIGUITY MR AITKEN ASKED LIFETIME'S MANAGEMENT TO MEET WITH ABBEY PROMPTLY FOR SERIOUS DISCUSSIONS FOR THE BENEFIT OF ALL LIFETIME AND ABBEY SHAREHOLDERS MR AITKEN ALSO CRITICIZED THE COMPENSATION PACKAGES OF LIFETIME'S MANAGEMENT THE ONLY PEOPLE WHO REAPED REWARDS OVER THE LAST FIVE YEARS HAVE BEEN LIFETIME'S EXECUTIVE OFFICERS HE SAID IN HIS LETTER THEIR LUCRATIVE CASH COMPENSATION PACKAGES TOTALED ALMOST TWO TIMES LIFETIME'S AGGREGATE REPORTED EARNINGS FOR THE LAST FIVE YEARS OF JUST 85 MILLION MR AITKEN ALSO SAID FURTHERMORE WHEN YOUR SHAREHOLDERS SUFFERED AS LIFETIME'S SHARE PRICE PLUMMETED THESE OFFICERS GAINED BY HAVING OVER 1300000 OPTIONS REISSUED AND REPRICED AT 1875 PER SHARE FROM THEIR ORIGINAL OPTION PRICES THAT RANGED FROM 2388 TO 3188 PER SHARE A LIFETIME SPOKESMAN SAID THE BOARD WOULD MEET IN DUE COURSE TO REVIEW THE NEW BID THE SPOKESMAN ADDED THAT THE COMPANY DISAGREED WITH ABBEY'S ANALYSIS OF ITS FINANCIAL PERFORMANCE IN A LETTER TO ABBEY LIFETIME CHAIRMAN ANTHONY H REEVES NOTED THAT OPERATING PROFIT FROM 1988 TO 1992 EQUALED 90 MILLION AND THAT PROFIT FROM CONTINUING OPERATIONS TOTALED 45 MILLION AND NOT THE 85 MILLION FIGURE ABBEY USED LIFETIME SAID IT TOOK A ONETIME CHARGE OF 41 MILLION IN 1991 IN CONNECTION WITH A DISCONTINUED OPERATION IN THE UNITED KINGDOM MR REEVES ALSO NOTED THAT EXECUTIVE COMPENSATION IN 1992 REFLECTED A LARGE ONETIME PAYMENT OF ABOUT 6 MILLION MADE TO LIFETIME'S FORMER VICE CHAIRMAN UNDER AN EMPLOYMENT TERMINATION AGREEMENT WITH HIM JOSEPH PEREIRA IN BOSTON CONTRIBUTED TO THIS ARTICLE 9304050053 930405 BUSINESS BRIEF BERLINER HANDELS & FRANKFURTER FULL OPERATING PROFIT ROSE BY 69 TO 230 MILLION IN '92 FRANKFURT GERMANY'S BERLINER HANDELS & FRANKFURTER BANK REPORTED FULL OPERATING PROFIT INCREASED 69 IN 1992 WHILE PARTIAL OPERATING PROFIT ROSE 15 FULL OPERATING PROFIT ROSE TO 366 MILLION MARKS 230 MILLION FROM 342 MILLION MARKS PARTIAL OPERATING PROFIT JUMPED 327 MILLION MARKS FROM 283 MILLION MARKS CONCERNING 1993 BHFBANK SAID GROUP FULL AND PARTIAL OPERATING PROFIT HAVE POSTED DOUBLEDIGIT GROWTH FOR THE FIRST THREE MONTHS OF THE YEAR THE BANK ALSO SAID IT WAS SATISFIED WITH TRADING ACTIVITY OUR BIG CONCERN REMAINS CREDIT RISK SAID WOLFGANG STRUTZ ONE OF THE GROUP'S MANAGING PARTNERS AT A NEWS CONFERENCE UNLIKE SOME OF GERMANY'S LARGEST BANKS MR STRUTZ SAID PROFIT FROM OWNACCOUNT TRADING FAILED TO MATCH 1991 LEVELS BECAUSE OF NOT ALWAYS FAVORABLE DEVELOPMENTS IN THE CURRENCY AND STOCK MARKETS 9304050052 930405 BUSINESS BRIEF LONRHO PLC FIRM SEES '93 PROFIT GAINS AT HOTELS GOLDFIELDS UNITS LONRHO PLC OF THE UK SAID IT EXPECTED PROFIT GAINS IN 1993 AT ITS METROPOLE HOTELS AND ASHANTI GOLDFIELDS DIVISIONS SPEAKING AT LONRHO'S ANNUAL GENERAL MEETING CHAIRMAN RENE LECLEZIO SAID METROPOLE WAS ALREADY ON THE WAY TO RECOVERY EARLY IN 1993 AFTER REGISTERING PROFIT DECLINES IN THE PAST TWO YEARS DESPITE CONTINUED WEAKNESS OF WORLD GOLD PRICES MR LECLEZIO SAID LONRHO WAS EXPECTING RECORD PROFIT FROM ITS GHANA GOLD MINE BECAUSE OF EXPANSION AND LOW COSTS HE ALSO SAID PEACE IN MOZAMBIQUE AND RAINS THROUGHOUT SOUTHERN AFRICA WILL HELP LONRHO'S SUGAR PLANTATIONS A FORECAST INCREASE IN CAR SALES WOULD HELP LONRHO'S CAR DEALERSHIPS IN THE UK AND AFRICA THE CHAIRMAN SAID AS WELL AS BOOSTING PRICES RECEIVED BY LONRHO'S PLATINUM MINES PLATINUM IS A KEY INGREDIENT IN AUTO POLLUTIONCONTROL SYSTEMS 9304050051 930405 BUSINESS BRIEF SAN MIGUEL CORP PHILIPPINE FIRM SAYS PROFIT CLIMBED 28 DURING 1992 SAN MIGUEL CORP A MANILA FOOD AND PACKAGING FIRM SAID AUDITED CONSOLIDATED NET INCOME ROSE 28 TO 359 BILLION PESOS 1439 MILLION IN 1992 FROM 281 BILLION PESOS IN 1991 NET SALES ROSE 9 TO 5823 BILLION PESOS FROM 5333 BILLION PESOS ANDRES SORIANO III CHAIRMAN AND FRANCISCO EIZMENDI JR PRESIDENT SAID THE 1992 RESULTS WERE ACHIEVED FROM A COMBINATION OF HIGHER EFFICIENCIES LOWER COSTS AND INTEREST RATES A MORE EFFECTIVE PRICING POLICY AND AN INTIMATE KNOWLEDGE OF OUR STRATEGIES THEY SAID ONE MAJOR CONCERN FOR 1993 WAS A NEW GOVERNMENT PROPOSAL TO INCREASE THE EXCISE TAX ON BEER ITS FLAGSHIP PRODUCT THEY ADDED THAT THE COMPANY'S EFFORTS TO INCREASE FOREIGN BUSINESS WILL NOT BE LIMITED TO BEER WE ARE COMPLETING STUDIES TO ENTER OTHER ASIAPACIFIC MARKETS FOR ICE CREAM THE OFFICIALS SAID THEY ALSO SAID THAT A JOINT VENTURE TO PRODUCE SHRIMP FEED IN CHINA IS BEING FINALIZED 9304050049 930405 BUSINESS BRIEF LINOTYPEHELL AG COMPANY TO RESUME PAYING SHAREHOLDER DIVIDEND FOR '92 LINOTYPEHELL AG WILL RESUME PAYING A SHAREHOLDER DIVIDEND WITH AN EIGHTMARK 503 PERSHARE PAYOUT FOR 1992 THE GERMAN PRINTING MACHINERY MANUFACTURER OMITTED A DIVIDEND IN 1991 THE COMPANY ALSO SAID ITS ORDERS IN THE FIRST QUARTER HAD FALLEN BELOW EXPECTATIONS IT ADDED THAT ORDERS IN THE FIRST HALF SHOULD ROUGHLY EQUAL ORDER INFLOW IN THE SAME PERIOD LAST YEAR IN A STATEMENT RELEASED PRIOR TO A NEWS BRIEFING THE COMPANY DIDN'T WAGER A CONCRETE FULLYEAR OUTLOOK IN 1991 LINOTYPE MERGED WITH HELL GMBH THE COMPANY SAID PERSHARE EARNINGS WERE ZERO IN 1992 COMPARED WITH A PERSHARE LOSS OF 11 MARKS IN 1991 CHAIRMAN WOLFGANG KUMMER PREDICTED A POSITIVE OPERATING PROFIT IN 1993 BUT SAID IT'S TOO EARLY TO FORECAST THE YEAR'S DIVIDEND OUTLOOK LINOTYPE'S COMPARISON FIGURES REPORTED FOR 1991 REFLECT THE SALE OF ITS ISGI UNIT WHICH WAS EFFECTIVE JAN 1 1992 ISGI'S 1991 PORTION OF COMPANY SALES WAS ABOUT 140 MILLION MARKS LINOTYPE SAID 9304050048 930405 BUSINESS BRIEF THOMAS COOK GROUP LTD FIRM BEGINS TENDER OFFER FOR 125 OF OWNERS ABROAD THOMAS COOK GROUP LTD A UKBASED TRAVEL AGENT OWNED BY WESTDEUTSCHE LANDESBANK GIROZENTRALE LAUNCHED ITS TENDER OFFER FOR 125 OF THE SHARES OF UK TOUR OPERATOR OWNERS ABROAD GROUP PLC THOMAS COOK SET AN APRIL 13 DEADLINE ON THE CASH OFFER OF 150 PENCE 230 A SHARE WHICH THE COMPANY PROMISED TO MAKE IF OWNERS ABROAD HOLDERS REJECTED A HOSTILE TAKEOVER BID BY RIVAL UK TOUR OPERATOR AIRTOURS PLC THE BID FAILED LAST MONTH AND EARLIER LAST WEEK AIRTOURS SOLD ITS ENTIRE 839 STAKE IN OWNERS ABROAD PRIOR TO THE AIRTOURS OFFER THOMAS COOK ITS ASSOCIATED GERMAN TOUR OPERATOR LTU GROUP AND OWNERS ABROAD HAD AGREED TO FORM A STRATEGIC ALLIANCE THOMAS COOK SAID IT ALREADY OWNS 89 OF OWNERS ABROAD AND THAT FOLLOWING THE TENDER OFFER IT COULD OWN 214 OF THE COMPANY'S ISSUED SHARE CAPITAL 9304050047 930405 BUSINESS BRIEFS BAUSCH & LOMB INC AGREED DEFINITIVELY TO ACQUIRE DAHLBERG INC GOLDEN VALLEY MINN FOR 158 MILLION VARITY CORP SOLD ITS 68 INTEREST IN BREMBO KELSEYHAYES SPA TO AN ITALIAN FINANCIAL COMPANY FOR ABOUT 33 MILLION THE BUYER WASN'T IDENTIFIED UNITED BANKSHARES INC AGREED TO BUY FROM CB&T FINANCIAL CORP WESTOVER BANK AND A BRANCH OF COMMUNITY BANK & TRUST THE ACQUISITION IS VALUED AT 85 MILLION CRANE CO ACQUIRED RONDEL'S INC A DISTRIBUTOR OF DOORS WINDOWS AND MOLDINGS AND SOLD THE PRECISION ORDNANCE BUSINESS OF ITS UNIDYNAMICS/PHOENIX INC UNIT TERMS WEREN'T DISCLOSED JAMES RIVER CORP COMPLETED THE SALE OF ITS GROVETON NH PAPER MILL TO WAUSAU PAPER MILLS CO TERMS WEREN'T DISCLOSED FORD MOTOR CO INCREASED INCENTIVES ON SELECT LIGHT TRUCKS BY AS MUCH AS 500 AND EXTENDED CUSTOMER REBATES ON MOST VEHICLES THROUGH MAY 3 MDU RESOURCES GROUP INC'S KRC AGGREGATE INC SUBSIDIARY COMPLETED THE ACQUISITION OF THE ASSETS OF ALASKA BASIC INDUSTRIES INC TERMS WEREN'T DISCLOSED GROW GROUP INC SIGNED A THREEYEAR 40 MILLION LINE OF CREDIT AGREEMENT WITH THREE BANKS INCLUDING CHEMICAL BANK AS AGENT ISUZU MOTORS LTD HAS ESTABLISHED AMERICAN ISUZU MOTOR CREDIT TO OFFER AUTO FINANCIAL SERVICES TO ISUZU DEALERS IN THE US 9304050046 930405 MEDIA LIFETIME AIM BE ALL THINGS TO ALL WOMEN BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LINDA CHRYSTAL HAS A BEEF WITH TELEVISION AND SHE CAN SUM IT UP IN TWO WORDS JEP SHOWS GRUMBLES THE TAMPA FLA INTERIOR DESIGNER EVERYBODY HAS THOSE JEP SHOWS JEPS EXPLAINS MS CHRYSTAL ARE TV PROGRAMS THAT DEPICT WOMEN IN JEOPARDY WOMEN AS EXPLOITED SEX OBJECTS WOMEN AS PUSHOVERS WOMEN AS VICTIMS BUT LATELY A CABLE CHANNEL CALLED LIFETIME HAS ATTRACTED HER ATTENTION WITH A SMALL BUT GROWING NUMBER OF ORIGINAL PROGRAMS AND MOVIES THAT PRESENT WOMEN IN SMART CONFIDENT YET FEMININE ROLES THE SHOWS ON LIFETIME I'VE ENJOYED THE MOST EMPOWER WOMEN TO FOLLOW THEIR INTUITION AND INTELLIGENCE SAYS MS CHRYSTAL AND YOU CAN HARDLY FIND THAT ANYWHERE ON THE DIAL HER FAVORITE SHAME AN ORIGINAL LIFETIME MOVIE ABOUT A WOMAN WHO DEFENDS A YOUNG GANGRAPE VICTIM IN THE FACE OF A SMALL TOWN'S CONSPIRACY OF SILENCE RIDDING ITS LINEUP OF JEPS IS ONE OF THE TACTICS THE CABLE CHANNEL FOR WOMEN IS USING THESE DAYS TO FURTHER SHAPE AND DEFINE ITS ONAIR PERSONALITY LIKE OTHER CABLE NETWORKS LIFETIME WILL SOON FACE THE DAY WHEN CABLE SYSTEMS CAN DELIVER HUNDREDS OF CHANNELS AND NEW COMPETITORS BECAUSE OF THE COMING ERA OF EVERNARROWER NETWORKS THE QUESTION ARISES WHETHER ANY SINGLE CHANNEL WILL BE ABLE TO CLAIM TO BE THE WOMAN'S NETWORK THAT LEAVES LIFETIME IN A BIT OF A MIDLIFE IDENTITY CRISIS IT WANTS TO BROADEN ITS APPEAL TO THE WIDEST CROSS SECTION OF WOMEN IT CAN YET DOING SO REQUIRES SOMETIMES DIVERGENT PROGRAMMING TO REACH SUCH DISPARATE GROUPS AS WOMEN IN PROFESSIONAL CAREERS NEW STAYATHOME MOTHERS WHO WANT CHILDREARING ADVICE PINKCOLLAR CLERICAL WORKERS LOOKING TO CLIMB THE LADDER AND 50PLUS WOMEN FINISHED WITH RAISING A FAMILY AND LOOKING FOR A NEW KIND OF FULFILLMENT IN PERHAPS FIVE YEARS THERE WILL BE ENOUGH ROOM ON THE CABLE DIAL TO PROGRAM A CHANNEL OR TWO OR THREE FOR EACH OF THESE NICHES YET LIFETIME WANTS THEM ALL SO THE CABLE CHANNEL HAS TO EMPOWER WOMEN AT THE SAME TIME THAT IT OFFERS GOOD BUNDT CAKE RECIPES IT AIRS EVERYTHING FROM SHOP 'TIL YOU DROP A HALFHOUR SERIES THAT COMBINES SHOPPING KNOWLEDGE WITH OUTRAGEOUS STUNTS TO MAJORITY RULE AN ORIGINAL MOVIE ABOUT A FEMALE ARMY GENERAL WHO BECOMES PRESIDENT BUT IT'S A TRICKY JOB FOR STARTERS LIFETIME'S TARGET AUDIENCE BY DEFINITION INCLUDES JUST HALF THE VIEWING POPULATION YET ONETHIRD OF ITS TYPICAL AUDIENCE TURNS OUT TO BE MALE MOREOVER THE NETWORK'S RESEARCH SHOWS THAT A DAUNTING 65 OF WOMEN SURRENDER THE REMOTE CONTROL TO MEN DURING PRIME TIME AND ON SUNDAYS THE CHANNEL SEEMS TO HAVE A PERSONALITY DISORDER ON THE WEEK'S HIGHEST TVVIEWING DAY LIFETIME RUNS PROGRAMMING FOR DOCTORS AND HEALTHCARE PROFESSIONALS SUCH AS INFECTIOUS DISEASES THE LINEUP IS A LEGACY OF THE MERGER THAT FORMED LIFETIME NEARLY A DECADE AGO DECIDING WHAT WORKS AND WHAT WOMEN WANT IS A MAN LIFETIME'S NEW PRESIDENT DOUGLAS MCCORMICK HE IS A SINGLE PARENT WHO WORKED HIS WAY UP THROUGH SALES POSITIONS AT THE NETWORK WE WANT TO BE AN OASIS FOR WOMEN ON THE DIAL MR MCCORMICK SAYS WE WANT WOMEN TO RELATE TO THE PEOPLE IN OUR PROGRAMMING WHETHER IT'S AN ORIGINAL MOVIE OR A DOCUMENTARY LOOMING LARGE OVER MR MCCORMICK'S FIRST TWO MONTHS IN OFFICE IS THE QUESTION OF WHO HE WILL END UP WORKING FOR LIFETIME HAS THREE EQUAL OWNERS HEARST CORP AND CAPITAL CITIES/ABC INC WHICH HAD JOINTLY OWNED THE OLD DAYTIME WOMEN'S CHANNEL AND VIACOM INC WHICH HAD OWNED THE FORMER CABLE HEALTH NETWORK THE TWO SERVICES MERGED IN 1983 AND THE ORIGINAL AGREEMENT CALLS FOR NEGOTIATIONS TO BEGIN NOW OVER A POSSIBLE BUYOUT VIACOM COULD BUY OUT THE INTERESTS OF HEARST AND CAPITAL CITIES/ABC WE SEE LIFETIME AS A VERY SUCCESSFUL BUSINESS SAYS FRANK BIONDI PRESIDENT OF VIACOM BUT THE ORIGINAL MERGER REQUIRES THE EXPLICIT CONSENT OF THE OTHER PARTNERS A MORE LIKELY SCENARIO SOME SAY IS THAT CAPITAL CITIES AND HEARST ALREADY PARTNERS IN ESPN AND THE ARTS & ENTERTAINMENT NETWORK WILL BUY OUT VIACOM LIFETIME IS AN ATTRACTIVE PROPERTY ADVERTISING REVENUE IS LIKELY TO CLIMB 15 THIS YEAR TO 1457 MILLION ACCORDING TO PAUL KAGAN ASSOCIATES INC SUBSCRIBER GROWTH WHICH HAS SLOWED IN RECENT YEARS NONETHELESS CONTINUES TO TICK UP AND IS NOW AT 572 MILLION HOMES CONTRIBUTING ANOTHER 57 MILLION IN REVENUE THIS YEAR KAGAN FORECASTS AD SALES ACCOUNT FOR 71 OF THE CHANNEL'S REVENUE FLOW A HEALTHY MIX THE NETWORK'S PRIMETIME RATINGS RANK SIXTH AMONG CABLE CHANNELS YET COMPARED WITH BROADCAST NETWORKS THE RATINGS ARE STILL PALTRY AT 686400 TV HOUSEHOLDS OR 12 OF LIFETIME'S TOTAL REACH IN PRIME TIME AND 400400 TV HOMES OR 07 FOR THE FULL DAY IF RATINGS ARE TO GROW LIFETIME'S PROMOTION AND PRODUCTION BUDGETS MUST GROW THE CHANNEL WILL SOON WAGE A 10 MILLION AD CAMPAIGN INCLUDING SPOTS ON CABLE AND IN PRINT MEDIA TO REINFORCE LIFETIME'S IDENTITY WITH VIEWERS IT HAS DOUBLED ITS ORIGINAL PRODUCTIONS IN THE PAST FIVE YEARS TO ABOUT SEVEN HOURS A DAY AND WILL SPEND 50 MORE ON ORIGINAL FARE THIS YEAR THAN LAST FOR 1993 IT WILL SPEND ABOUT 110 MILLION ON ALL PROGRAMMING UP 20 AND PLANS TO RUN SIX ORIGINAL MOVIES INCLUDING THE RECENT STOLEN BABIES ABOUT A WOMAN'S STRUGGLE TO BRING DOWN AN ILLEGAL ADOPTION RING ALREADY LIFETIME HAS WON A LOYAL AUDIENCE IN THE DAYTIME BY EXPANDING ITS FRANCHISE OF PARENTAL PROGRAMMING WHICH INCLUDES SUCH SHOWS AS WHAT EVERY BABY KNOWS HOSTED BY PEDIATRICIAN T BERRY BRAZELTON AND YOUR BABY AND CHILD WITH PENELOPE LEACH THIS JULY IT WILL ADD YOUR CHILD SIX TO TWELVE WITH KYLE PRUETT IN PRIME TIME LIFETIME RELIES ON RERUNS OF LA LAW THIRTYSOMETHING AND OTHER NETWORK DRAMAS TO GET VIEWERS INTO THE TENT SAYS MR MCCORMICK BUT POPULAR RERUNS WON'T GIVE THE NETWORK THE KIND OF BRAND IDENTITY IT WILL NEED IN A WORLD OF 150 CHANNELS JONES INTERCABLE INC CHAIRMAN GLENN JONES ECHOING OTHER LARGE CABLE OPERATORS SAYS SOME VIEWERS HAVE A HAZY IMPRESSION OF LIFETIME THERE'S NO REASON WHY LIFETIME SHOULDN'T BE A ROARING SUCCESS HE SAYS IF THEY CAN CREATE A FIRM IDENTITY TO REINFORCE ITS IMAGE AS ISSUE DRIVEN LIFETIME IN MARCH PREMIERED THE JANE PRATT SHOW WHICH AIMS AT YOUNGER WOMEN WITH SUBJECTS LIKE THE NEW FEMINISM VIOLENCE AGAINST WOMEN AND VAIN MEN BY THE FALL LIFETIME HOPES TO LAUNCH AN HOURLONG NEWS MAGAZINE LATER THIS MONTH LINDA ELLERBEE WILL HOST MRS SMITH GOES TO WASHINGTON A SPECIAL ON THE FIRST 100 DAYS OF THE NEWLY ELECTED WOMEN IN CONGRESS WHEN I TURN ON THE TV I WONDER HOW MANY WHITE MEN IN DARK SUITS AM I GOING TO WATCH TODAY' SAYS BARBARA BRIEMER A NEW JERSEY VIEWER THIS ISN'T REALITY REALITY IS JANET RENO WE'RE TIRED OF MYTH AND STEREOTYPES LIFETIME IS THE ONLY CHANNEL THAT SHOWS WOMEN EXIST BUT MR MCCORMICK FRETS THAT TOO MUCH HEAVY MATERIAL WILL TURN VIEWERS OFF WOMEN ALSO WANT TO BE ENTERTAINED HE SAYS TO THAT END LIFETIME WILL LAUNCH AMAZING LOVE STORIES LATER THIS YEAR IT'S A MATTER OF BALANCE HE SAYS 9304050045 930405 WHAT'S NEWS BUSINESS AND FINANCE PHILIP MORRIS IS CUTTING THE PRICE OF MARLBORO CIGARETTES BY UP TO 20 AND PLANS TO FORGO INCREASES ON OTHER MAJOR BRANDS WHILE EXPANDING DISTRIBUTION OF DISCOUNT BRANDS THE MOVES REFLECTING A DECLINE IN BRAND LOYALTY COULD SLASH THE COMPANY'S TOBACCO PROFIT BY 40 ITS STOCK PLUMMETED 1475 OR 23 TO 49375 OTHER TOBACCO STOCKS ALSO TUMBLED STOCKS PLUNGED TRIGGERED BY SLIDING TOBACCO SHARES AND A WEAK EMPLOYMENT REPORT WHILE BOND PRICES SANK THE DOW JONES INDUSTRIALS FELL 6863 POINTS OR 2 TO 337081 THE BENCHMARK 30YEAR TREASURY BOND'S PRICE LOST MORE THAN A POINT SENDING THE YIELD OVER 7 TO FINISH AT 706 STOCK MUTUAL FUNDS POSTED GAINS AVERAGING 329 FOR THE FIRST QUARTER TRAILING THE S&P 500 INDEX'S 436 TOTAL RETURN BOND FUNDS GAINED 396 PAYROLLS SHRANK LAST MONTH WHILE UNEMPLOYMENT HELD STEADY AT 7 IN ANOTHER SIGN THAT ECONOMIC GROWTH HAS SLOWED CONSIDERABLY CLINTON AIDES SAID THE DATA DEMONSTRATED THE NEED FOR A STIMULUS PACKAGE HOURLY EARNINGS MEANWHILE CLIMBED 05 CONGRESS POSTPONED ITS SPRING RECESS AS SENATE DEMOCRATS FAILED TO BREAK A REPUBLICAN FILIBUSTER BLOCKING PASSAGE OF THE WHITE HOUSE'S 163 BILLION ECONOMIC STIMULUS PROPOSAL IBM PLANS TO CUT THE PAYMENTS IT OFFERS TO EMPLOYEES WHO LEAVE THE COMPUTER MAKER STARTING JULY 1 THE MOVE MAY ENCOURAGE MANY WORKERS TO TAKE ADVANTAGE OF CURRENT OFFERS WHICH SOME WALL STREET ANALYSTS HAVE CRITICIZED AS OVERLY GENEROUS COMPUTERVISION FIRED ITS CEO CITING WORSETHANEXPECTED RESULTS THE SOFTWARE AND COMPUTER SERVICES CONCERN 22OWNED BY AMERICAN EXPRESS'S LEHMAN BROTHERS UNIT NAMED ITS CHAIRMAN TO BE CEO AS WELL DISKDRIVE MAKER CONNER PERIPHERALS SAID ITS PROFIT FOR THE LATEST QUARTER FELL WELL BELOW EXPECTATIONS ASK GROUP A SOFTWARE COMPANY ISSUED A SIMILAR WARNING THE NEWS DEPRESSED PRICES OF TECHNOLOGY STOCKS OVERALL GM WON A GERMAN COURT ORDER BARRING VOLKSWAGEN FROM RECRUITING GM EUROPE MANAGERS VW WHICH HIRED GM'S PURCHASING CHIEF LAST MONTH DENIED DOING ANYTHING IMPROPER ICM PROTESTED RIVAL TALENT AGENCY CAA'S AGREEMENT TO HELP MANAGE FRENCH BANK CREDIT LYONNAIS'S 3 BILLION ENTERTAINMENT LOAN PORTFOLIO ICM SAID THE BANK COULD GIVE CAA ACCESS TO SENSITIVE DATA ABOUT ICM CLIENTS HOME SHOPPING NETWORK FACES ALLEGATIONS THAT ITS CHAIRMAN AND FORMER PRESIDENT PROFITED FROM SECRET TIES TO VENDORS AND PAID 12 MILLION IN STOCK TO AN EXECUTIVE WHO THREATENED TO SUE F&C INTERNATIONAL FIRED ITS CHAIRMAN AND THE FLAVOR AND FRAGRANCE COMPANY DISCLOSED INVENTORY DISCREPANCIES THAT ALLEGEDLY OCCURRED WITH THE EXECUTIVE'S KNOWLEDGE CHRYSLER IS RECALLING 65 OF THE JEEP GRAND CHEROKEES BUILT SINCE LAUNCHING THE VEHICLE A YEAR AGO THE STEP IS INTENDED TO FIX TWO PROBLEMS GOLD FUTURES PRICES CLIMBED 2 TO 34230 FOR A GAIN OF 8 FOR THE WEEK REFLECTING CONCERNS ABOUT INFLATIONSPS BONDS LEHMAN BROTHERS TREASURY INDEX 494857 OFF 3833 COMMODITIES OIL 2065 A BARREL UP 13 CENTS DOW JONES FUTURES INDEX 12714 UP 050 SPOT INDEX 12457 OFF 121 DOLLAR 11375 YEN OFF 055 15975 MARKS UP 00060 9304050044 930405 BUSINESS BRIEF HALLIBURTON CO JOINT VENTURE IS ESTABLISHED WITH CHINA PETROLEUM FIRM HALLIBURTON CO DALLAS SAID IT FORMED A JOINT VENTURE WITH CHINA NATIONAL PETROLEUM CORP TO PROVIDE EQUIPMENT AND SERVICES TO THE PETROLEUM EXPLORATION AND PRODUCTION INDUSTRY IN CHINA THE JOINT VENTURE COMPANY TO BE LOCATED IN BEIJING WILL INITIALLY EMPHASIZE SERVICES SUCH AS WELL CEMENTING STIMULATION AND COMPLETION SERVICES TO THE INTERNATIONAL PETROLEUM INDUSTRY AND THE CHINA NATIONAL PETROLEUM CORP ADDRESSING THE MARKET POTENTIAL FOR ITS JOINT VENTURE HALLIBURTON SAID THAT CHINA WILL SOON OPEN FOR THE FIRST TIME CERTAIN ONSHORE AREAS FOR INTERNATIONAL EXPLORATION AND DEVELOPMENT SUCH AS THE TARIM BASIN IN NORTHWEST CHINA FURTHER THE DIVERSIFIED ENERGY SERVICES CONCERN SAID CHINA ALREADY PRODUCES ABOUT 28 MILLION BARRELS OF OIL A DAY AND HAS RESERVES OF ABOUT 24 BILLION BARRELS 9304050043 930405 F&C INTERNATIONAL FIRES ITS CHAIRMAN DISCLOSES DISCREPANCIES IN INVENTORY BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL F&C INTERNATIONAL INC FIRED ITS CHAIRMAN JON P FRIES AND DISCLOSED INVENTORY DISCREPANCIES THAT ALLEGEDLY OCCURRED WITH THE EXECUTIVE'S KNOWLEDGE THE CINCINNATI FLAVOR AND FRAGRANCE COMPANY SAID IN A STATEMENT THAT IT COULDN'T IDENTIFY THE MAGNITUDE OF THE DISCREPANCIES BUT THE MATTER WAS LARGE ENOUGH TO CAUSE F&C'S INDEPENDENT AUDITOR TO WITHDRAW ITS SUPPORT OF THE COMPANY'S FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30 THE COMPANY DIDN'T NAME THE AUDITOR BUT ACCORDING TO COMPANY FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION IT HIRED ARTHUR ANDERSEN & CO AFTER DISMISSING ITS PREVIOUS AUDITOR ERNST & YOUNG IN JUNE 1991 F&C'S ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING FRIDAY OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING COMMENT THE COMPANY'S STATEMENT SAID IT IS MEETING WITH ITS MAIN LENDER WHICH IT DIDN'T IDENTIFY TO DISCUSS ITS CONTINUED SUPPORT THE DISCLOSURE FOLLOWED A CLASSACTION LAWSUIT FILED AGAINST THE COMPANY BY SHAREHOLDERS IN NOVEMBER THEY ACCUSED F&C AND MR FRIES OF MAKING HIGHLY FAVORABLE BUT FALSE AND MISLEADING POSITIVE PUBLIC STATEMENTS THE INVESTORS SAID THEY WERE BLINDSIDED BY LOSSES THE COMPANY REPORTED FOR THE QUARTER AND YEAR ENDED JUNE 30 1992 WHICH LED TO A 39 DECLINE IN THE STOCK'S VALUE THE COMPANY ALSO HAD LOSSES IN THE FIRST TWO QUARTERS OF FISCAL 1993 ARTHUR N ABBEY A LAWYER WITH THE NEW YORK FIRM OF ABBEY & ELLIS WHO REPRESENTS THE SHAREHOLDERS SAID THE COMPANY'S DISCLOSURE IS A DIRECT ADMISSION THE NUMBERS ARE NOT CORRECT HE SAID THE PLAINTIFFS WOULD AMEND THEIR LAWSUIT TODAY NO TRIAL DATE HAS BEEN SET FOR THE CASE IN FEDERAL COURT IN CINCINNATI WHILE F&C DIDN'T DESCRIBE THE DISCREPANCIES A COMPANY THAT OVERSTATES ITS INVENTORY CAN MAKE ITSELF APPEAR TO HAVE A STRONGER BALANCE SHEET AND BY REDUCING ITS COST OF GOODS SOLD STRONGER EARNINGS F&C IS AMONG SEVERAL COMPANIES INCLUDING PHARMOR INC AND CHAMBERS DEVELOPMENT CO THAT RECENTLY HAVE DISCLOSED ACCOUNTING IRREGULARITIES AS OF JUNE 30 1992 F&C HAD INVENTORIES OF 188 MILLION ACCORDING TO THE COMPANY'S FINANCIAL STATEMENTS AS OF SEPT 30 INVENTORIES WERE 177 MILLION F&C HAD SALES OF 579 MILLION IN FISCAL 1992 MR FRIES 46 YEARS OLD STEPPED DOWN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER LAST MONTH BUT REMAINED CHAIRMAN THE COMPANY MADE NO REFERENCE TO WRONGDOING WHEN IT ANNOUNCED HIS DEPARTURE FROM THE TWO POSTS AT THAT TIME F&C ALSO SAID IT PLANNED TO DIVEST OF ITS FRAGRANCE BUSINESS IN ORDER TO RAISE CAPITAL AND CONCENTRATE ON ITS FLAVOR BUSINESS WHICH ACCCOUNTS FOR 80 OF SALES MR FRIES HAS AN UNPUBLISHED TELEPHONE NUMBER AND COULDN'T BE REACHED HE JOINED F&C AS CHIEF EXECUTIVE OFFICER IN 1986 AFTER 17 YEARS WITH FRIES & FRIES A UNIT OF MALLINCKRODT INC THE COMPANY SAID IT AND ITS OUTSIDE AUDITOR ARE REVIEWING THE MATTER IT ALSO SAID IT WOULD TAKE ALL APPROPRIATE LEGAL ACTIONS TO RECOVER ANY LOSSES ASSOCIATED WITH THIS CONDUCT 9304050042 930405 WHAT'S NEWS WORLDWIDE CLINTON PLEDGED 16 BILLION IN US AID TO YELTSIN AS THEIR SUMMIT ENDED AT THE CLOSE OF THE WEEKEND MEETING IN VANCOUVER THE TWO PRESIDENTS ALSO VOWED TO REVIEW COLD WAR RESTRICTIONS THAT STILL INHIBIT USRUSSIAN TRADE THE US AID OFFERED TO RUSSIA MEANWHILE WAS DESCRIBED BY WHITE HOUSE OFFICIALS AS ONLY A DOWN PAYMENT NEARLY 900 MILLION OF THE VANCOUVER PACKAGE WILL GO TOWARD FOOD GRANTS AND CREDITS FAR GREATER HELP FOR RUSSIA SHOULD COME THIS MONTH IN TOKYO WHEN GROUP OF SEVEN MINISTERS MEET TO DEVELOP A MULTIBILLIONDOLLAR AID PLAN BEFORE ARRIVING IN CANADA YELTSIN WAS GRANTED A LONGAWAITED RESCHEDULING OF RUSSIA'S 80 BILLION FOREIGN DEBT BY CREDITOR INDUSTRIAL NATIONS THE PARIS CLUB'S ACTION WAS A PREREQUISITE FOR ANY FURTHER BORROWING BY MOSCOW A SARAJEVO AIRLIFT RESUMED BUT EVACUATION EFFORTS STALLED IN EAST BOSNIA UN OFFICIALS SAID PLANES DELIVERED FOOD AND MEDICINE TO THE BOSNIAN CAPITAL FOLLOWING A 16DAY SUSPENSION SHELLS FELL ON SARAJEVO STRAINING A WEEKOLD TRUCE AND OFFICIALS SAID AT LEAST SEVEN PEOPLE DIED IN THE EAST ANOTHER CONVOY BROUGHT FOOD TO SREBRENICA BUT MUSLIM LEADERS BLOCKED THE EVACUATION OF CIVILIANS FROM THE TOWN APPARENTLY FEARING IT WOULD BENEFIT SERB FORCES SECRETARY OF STATE CHRISTOPHER OFFERED TO REVISE A PEACE PLAN TO GAIN THE SUPPORT OF BOSNIAN SERBS WHO REJECTED THE PLAN FRIDAY BUT HE SAID THE US STILL WOULD APPLY PRESSURE INCLUDING STIFFER SANCTIONS AGAINST FEDERAL YUGOSLAVIA SEN DURENBERGER WAS INDICTED BY A FEDERAL GRAND JURY ON CHARGES THAT HE TRIED TO CHEAT THE SENATE OUT OF 3825 BY HIDING HIS OWNERSHIP IN A CONDOMINIUM AT A NEWS CONFERENCE FRIDAY THE MINNESOTA REPUBLICAN SAID HE WOULD FIGHT THE COMPLETELY FALSE CHARGES TWO OF HIS ASSOCIATES ALSO WERE INDICTED FLORIDA LAWMAKERS ADOPTED GOV CHILES'S PLAN TO REVAMP THE STATE'S MEDICAL SYSTEM THE PLAN APPROVED EARLY SATURDAY REPRESENTS AN EFFORT TO APPLY THE THEORY OF MANAGED COMPETITION TO CURB HEALTH CARE COSTS FLORIDA SPENT MORE THAN 35 BILLION ON HEALTH CARE IN 1992 ACCORDING TO OFFICIAL FIGURES ISRAEL'S GOVERNMENT WEIGHED STEPS TO REDUCE THE NUMBER OF PALESTINIAN WORKERS FROM THE OCCUPIED TERRITORIES BY REPLACING THEM WITH ISRAELIS A GOVERNMENT PANEL PLANS TO SUBMIT PROPOSALS TO THE CABINET NEXT WEEK PRIME MINISTER RABIN LAST WEEK CLOSED OFF THE WEST BANK AND GAZA IN A BID TO CURB UNREST PROIRANIAN HEZBOLLAH GUERRILLAS CLASHED WITH ISRAELI SOLDIERS IN SOUTH LEBANON DRAWING A RETALIATORY ARTILLERY BARRAGE THERE WERE CONFLICTING REPORTS CONCERNING CASUALTIES FROM THE FIGHTING THE NAVY WANTS TO PUT WOMEN IN ALL OF ITS FRONTLINE COMBAT JOBS AS FIGHTER PILOTS AND AS CREW MEMBERS ON SUBMARINES AND WARSHIPS WITHIN THE NEXT FOUR YEARS OFFICIALS SAID THE PLAN WHICH IS READY FOR ACTION BY DEFENSE SECRETARY ASPIN IS AIMED AT REPAIRING THE NAVY'S IMAGE IN THE AFTERMATH OF THE TAILHOOK SEX ABUSE SCANDAL CLINTON NOMINATED TWO EXJUSTICE DEPARTMENT OFFICIALS AS TOP AGENCY AIDES PHILIP HEYMAN WAS CHOSEN TO BE DEPUTY ATTORNEY GENERAL AND DREW DAYS WAS NOMINATED TO BE SOLICITOR GENERAL WEBSTER HUBBELL A CLOSE FRIEND OF THE PRESIDENT WAS PICKED TO BE ASSOCIATE ATTORNEY GENERAL A FEDERAL JURY IN SEATTLE FOUND JOSEPH E MELING GUILTY FRIDAY ON ALL 11 COUNTS OF DRUG TAMPERING IN THE 1991 DEATHS OF TWO PEOPLE AND THE NEARFATAL POISONING OF HIS WIFE MELING WHO FACES A MAXIMUM PENALTY OF LIFE IN PRISON WAS ACCUSED OF PUTTING CYANIDEFILLED CAPSULES INTO SUDAFED PACKAGES IN AN ATTEMPT TO KILL HIS WIFE HUNDREDS OF PAKISTANIS DEFIED ARMY WARNINGS AND PRESSED TOWARD THE DISPUTED KASHMIRI BORDER THE ANTIINDIAN DEMONSTRATORS WERE SEEKING TO STORM THE INDIANDEFENDED CEASEFIRE LINE DIVIDING KASHMIR THE PAKISTAN GOVERNMENT FEARING ANOTHER CONFRONTATION WITH INDIA VOWED TO SEND TROOPS TO HALT THE MARCHERS ARMENIAN TROOPS CONSOLIDATED THEIR CONTROL OVER AZERBAIJAN'S WESTERN KELBAJAR REGION IN A SIGNIFICANT TURN IN THE FIVEYEAROLD WAR FOR CONTROL OF THE NAGORNOKARABAKH ENCLAVE THE FALL OF KELBAJAR OPENED A SECOND CORRIDOR FROM ARMENIA INTO NAGORNOKARABAKH AN AREA IN MUSLIM AZERBAIJAN THAT IS POPULATED MAINLY BY CHRISTIAN ARMENIANS 9304050041 930405 BUSINESS BRIEF UNOCAL CORP DRILLING TESTING COMPLETED ON THREE WELLS IN THAILAND UNOCAL CORP SAID ITS UNOCAL THAILAND UNIT COMPLETED THE DRILLING AND TESTING OF THREE NATURAL GAS WELLS IN THE PAILIN FIELD OF BLOCK B12/27 IN THE GULF OF THAILAND ABOUT 350 MILES SOUTHEAST OF BANGKOK THE THREE WELLS NOW SUSPENDED ARE PART OF A DRILLING PROGRAM TO DETERMINE THE EXTENT OF THE PAILIN NATURAL GAS FIELD THE LOS ANGELES OIL COMPANY SAID THREE TESTS WERE CONDUCTED ON EACH WELL THE PAILIN 3 WELL HAD A CUMULATIVE FLOW RATE OF 525 MILLION CUBIC FEET A DAY OF NATURAL GAS AND 297 BARRELS A DAY OF CONDENSATE PAILIN 4 TESTED AT 449 MILLION CUBIC FEET A DAY OF NATURAL GAS AND 1560 BARRELS A DAY OF CONDENSATE AND PAILIN 5 TESTED AT 259 MILLION CUBIC FEET A DAY OF NATURAL GAS AND 633 BARRELS A DAY OF CONDENSATE UNOCAL THAILAND WITH A 35 INTEREST IN BLOCK B12/27 IS OPERATOR BRITOIL ALPHA A UNIT OF BRITISH PETROLEUM CORP HOLDS A 45 INTEREST AMERADA HESS CORP HAS A 15 SHARE AND MOTODECO A UNIT OF MITSUI OIL EXPLORATION CO HOLDS 5 9304050040 930405 BUSINESS BRIEF SUMITOMO CORP EARNINGS ESTIMATE FOR YEAR IS LOWERED BY TRADING FIRM SUMITOMO CORP A LEADING JAPANESE TRADING HOUSE LOWERED ITS ESTIMATE FOR UNCONSOLIDATED OR PARENT ONLY PROFIT FOR THE FISCAL YEAR THAT ENDED WEDNESDAY UNDER THE WEIGHT OF THE SAGGING ECONOMY A COMPANY OFFICIAL SAID IN TOKYO SUMITOMO NOW SAYS PRETAX PROFIT WILL COME TO ABOUT 40 BILLION YEN 351 MILLION DOWN 11 FROM THE 45 BILLIONYEN PREDICTION IT MADE IN NOVEMBER AND OFF 37 FROM 6325 BILLION YEN A YEAR EARLIER A COMPANY OFFICIAL SAID THE DOWNWARD REVISION IS DUE TO THE DELAY IN THE ECONOMY'S RECOVERY WHICH IS DEPRESSING SUMITOMO'S BUSINESS ACTIVITIES NET INCOME IS NOW PEGGED AT AROUND 20 BILLION YEN DOWN 13 FROM THE PREVIOUS PREDICTION OF 23 BILLION YEN AND DOWN 40 FROM 333 BILLION YEN THE YEAR BEFORE SUMITOMO DIDN'T PROVIDE A SPECIFIC NEW FORECAST FOR REVENUE THE OFFICIAL SAID THAT REVENUE FOR THE LATEST FISCAL YEAR FELL SHORT OF THE 17 TRILLIONYEN FORECAST DUE IN PART TO SOFTENING IN COMMODITY PRICES BUT THAT THE DECLINE WON'T BE MORE THAN 10 9304050039 930405 INTERNATIONAL BRIEF MBCARADON PLC BRITISH CONCERN SELLS STAKE IN FRENCH PACKAGING FIRM BRITISH BUILDING PRODUCTS AND SECURITIESPRINTING GROUP MBCARADON PLC SAID IT SOLD ITS 253 STAKE IN FRENCH PACKAGING COMPANY CARNAUDMETALBOX IN THREE TRANSACTIONS RAISING A TOTAL OF 473 MILLION 7244 MILLION BEFORE EXPENSES A SUBSIDIARY OF CIE GENERALE D'INDUSTRIE ET DE PARTICIPATIONS OR CGIP BOUGHT A 7 STAKE IN CARNAUDMETALBOX CGIP WAS MBCARADON'S MANAGEMENT PARTNER IN CARNAUDMETALBOX AND HAD HELD A SIMILAR STAKE WHICH WILL NOW RISE TO 32 A UNIT OF PARFINANCE AN INVESTMENT AFFILIATE OF SWITZERLAND'S PARGESA HOLDINGS SA BOUGHT A 6 STAKE PARFINANCE HAD HELD NO STAKE IN CARNAUDMETALBOX THE REMAINING 123 OF THE FRENCH COMPANY WAS BOUGHT BY UK INVESTMENT BANK SG WARBURG & CO FOR PLACING WITH INSTITUTIONAL INVESTORS 9304050038 930405 LAW LEGAL BEAT TORTURE CLAIM MAY UNDERMINE BOMBING CASE BY WADE LAMBERT AND JONATHAN M MOSES STAFF REPORTERS OF THE WALL STREET JOURNAL DOES TORTURE OF A SUSPECT ABROAD SHOCK THE CONSCIENCE OF A US COURT THIS COULD TURN OUT TO BE A PIVOTAL LEGAL QUESTION IN THE CASE AGAINST THE ACCUSED RINGLEADER IN THE WORLD TRADE CENTER BOMBING WHO ALLEGEDLY WAS TORTURED IN EGYPT BEFORE BEING BROUGHT TO THIS COUNTRY THE ATTORNEY FOR MAHMUD ABOHALIMA ACCUSED OF ORGANIZING THE FEB 26 ATTACK SAID HIS CLIENT WAS INTERROGATED AND TORTURED BY EGYPTIAN AUTHORITIES FOR 10 DAYS BEFORE BEING TURNED OVER TO US OFFICIALS MARCH 24 THE ATTORNEY JESSE BERMAN CLAIMED THAT US OFFICIALS TOLERATED THE TORTURE AND BENEFITED FROM INFORMATION THE EGYPTIANS OBTAINED FROM MR ABOHALIMA AN EGYPTIAN NATIVE WHO WAS A TAXI DRIVER IN NEW YORK US LAW ENFORCEMENT OFFICIALS HAVE DECLINED TO COMMENT ON WHAT THEY LEARNED FROM THE EGYPTIANS' QUESTIONING OF MR ABOHALIMA NOW IN FEDERAL CUSTODY IN NEW YORK MR BERMAN SAID HE WILL SEEK A HEARING TO DETERMINE WHAT INFORMATION MAY HAVE BEEN PASSED ON TO US PROSECUTORS THE ALLEGED TORTURE COULD BE GROUNDS FOR CHALLENGING THE GOVERNMENT'S CASE UNDER THE SHOCK THE CONSCIENCE TEST INITIALLY USED TO ANALYZE WHETHER STATES' ABUSES OF INDIVIDUAL RIGHTS VIOLATED PROTECTIONS IN THE US BILL OF RIGHTS THE STANDARD HAS BEEN USED SINCE 1952 IN POLICEMISCONDUCT CASES TO DECIDE WHETHER A CASE MUST BE DISMISSED BUT IT WASN'T UNTIL 1974 IN A CASE HERALDED BY HUMANRIGHTS ACTIVISTS THAT THE FEDERAL APPEALS COURT IN NEW YORK SAID THE TEST COULD ALSO APPLY TO CASES OF TORTURE ABROAD THE APPEALS COURT IN US VS TOSCANINO SAID THAT THE EXTREME ABUSE OF A DEFENDANT OUTSIDE THE US IS INTOLERABLE AND CREATES GROUNDS FOR DISMISSING A CASE ON SOCALLED DUEPROCESS GROUNDS THE DECISION HAS NEVER BEEN REVIEWED BY THE SUPREME COURT SOCIETY IS THE ULTIMATE LOSER WHEN IN ORDER TO CONVICT THE GUILTY IT USES METHODS THAT LEAD TO DECREASED RESPECT FOR THE LAW THE APPEALS COURT SAID THE APPEALS COURT HOWEVER DIDN'T SAY HOW EXTREME THE ABUSE HAD TO BE TO JUSTIFY THROWING OUT A CASE AND IT LEFT TRIAL JUDGES GREAT LEEWAY IN CONSIDERING THE DEFENDANT'S CLAIMS DESPITE THE COURT'S STATEMENT IN PRINCIPLE THAT THE JUSTICE SYSTEM WON'T TOLERATE PROSECUTIONS LINKED TO TORTURE ABROAD LAWYERS SAY THEY KNOW OF NO CASES EVER DISMISSED UNDER TOSCANINO ITS PRACTICAL CONSEQUENCES HAVE BEEN ABSOLUTELY NOTHING SAID PAUL STEPHAN A LAW SCHOOL PROFESSOR AT THE UNIVERSITY OF VIRGINIA IT'S A FAIRLY HOLLOW EMBRACE OF THE PRINCIPLE COURTS ALSO HAVEN'T DETERMINED WHETHER US OFFICIALS MUST HAVE HAD SOME DIRECT ROLE IN THE TORTURE FOR DUEPROCESS PROBLEMS TO ARISE BUT LAWYERS SAY IT'S LOGICAL TO ASSUME THAT THE LESS US OFFICIALS KNOW ABOUT THE TORTURE BEFORE THE DEFENDANT REACHES THE US THE LESS LIKELY IT IS THAT THE CASE WILL BE DISMISSED IF HE WASN'T TORTURED BY AMERICAN OFFICIALS I SUSPECT HE WOULD HAVE A HARD TIME GETTING ANY RELIEF AT ALL SAID MARVIN FRANKEL A FORMER FEDERAL JUDGE AND CHAIRMAN OF THE LAWYERS COMMITTEE FOR HUMAN RIGHTS BUT PAUL HOFFMAN LEGAL DIRECTOR AT THE LOS ANGELES OFFICE OF THE AMERICAN CIVIL LIBERTIES UNION SAID THAT EVEN IF THERE WAS NO DIRECT INVOLVEMENT OF US OFFICIALS IN THE TORTURE MR ABOHALIMA'S ATTORNEYS COULD ARGUE THAT US AUTHORITIES WERE ON NOTICE THAT TORTURE WAS LIKELY BECAUSE OF EGYPT'S RECORD IN TREATING DETAINEES THAT KNOWLEDGE COULD HAVE TRIGGERED SOME US RESPONSIBILITY AT LEAST TO WARN THE EGYPTIANS NOT TO HARM MR ABOHALIMA MR HOFFMAN SAID ADDING THAT THE US HAS TAKEN SUCH STEPS IN OTHER CASES THAT INVOLVED THE ARREST OF DEFENDANTS OUTSIDE THE US SOME LAWYERS SAY IT IS UNLIKELY THAT THE US SUPREME COURT AS CURRENTLY CONSTITUTED WOULD UPHOLD THE NEW YORK FEDERAL APPEALS COURT DECISION THE HIGH COURT HASN'T BEEN RECEPTIVE TO EXTENDING CONSTITUTIONAL PROTECTIONS OUTSIDE THE US FOR INSTANCE THE SUPREME COURT RULED IN 1990 IN US VS VERDUGO THAT PROTECTIONS AGAINST ILLEGAL SEARCHES AND SEIZURES DON'T APPLY TO US OFFICIALS' ACTIONS AGAINST FOREIGN CITIZENS ABROAD PROF STEPHAN SAYS THE LANGUAGE OF THAT DECISION HINTS THAT THE SUPREME COURT ALSO WOULD FIND THAT THE CONSTITUTIONAL PROTECTIONS OF DUE PROCESS AT ISSUE IN THE NEW YORK DECISION ON TORTURE DON'T APPLY ABROAD LAWYERS SAY MR ABOHALIMA MAY HAVE MORE LUCK SEEKING TO SUPPRESS ANY INFORMATION THAT WAS OBTAINED AS A RESULT OF TORTURE RATHER THAN TRYING TO GET THE CASE THROWN OUT IN ADDITION TO ASSERTING CONSTITUTIONAL CONCERNS COURTS ARE LIKELY TO FIND THAT ANY STATEMENT ELICITED UNDER TORTURE ISN'T CREDIBLE SAID PROF STEPHAN A NEW YORK APPEALS COURT TOOK A NEW TACK IN THE DEBATE OVER A CONTROVERSIAL METHOD OF ASSISTING COMMUNICATION BY AUTISTIC AND OTHER SEVERELY DISABLED CHILDREN THE APPEALS COURT RULED THAT JUDGES DON'T NEED TO HOLD SPECIAL HEARINGS TO DETERMINE THE SCIENTIFIC VALIDITY OF THE TECHNIQUE KNOWN AS FACILITATED COMMUNICATION RATHER COURTS SHOULD FALL BACK ON THE TRADITIONAL STANDARDS USED TO JUDGE WHETHER COURT INTERPRETERS ARE PROPERLY TRANSLATING THE TESTIMONY OF A WITNESS IN FACILITATED COMMUNICATION A PERSON REFERRED TO AS A FACILITATOR SUPPORTS THE HAND OR ARM OF A SEVERELY DISABLED CHILD SO HE OR SHE CAN SPELL OUT MESSAGES ON A KEYBOARD THE APPELLATE RULING COMES SIX MONTHS AFTER TWO NEW YORK TRIAL COURTS SAID FACILITATED COMMUNICATION ISN'T SCIENTIFICALLY SUPPORTED AND SHOULDN'T YET BE USED IN THE COURTROOM THOSE TWO RULINGS WERE HAILED BY CRITICS OF FACILITATED COMMUNICATION WHO CLAIM THAT FACILITATORS MANIPULATE CHILDREN TO SPELL OUT THOUGHTS OTHER THAN THEIR OWN THE APPELLATE RULING GIVES IMPORTANT BACKING TO FACILITATED COMMUNICATION BY EQUATING THE PROCESS WITH OTHER MORE TRADITIONAL FORMS OF TRANSLATION THERE IS NO PRESENT REQUIREMENT NOR HAS IT EVER BEEN CONSIDERED NECESSARY IN THE PAST TO ESTABLISH THAT TRANSLATION FROM SPANISH TO ENGLISH AND VICE VERSA MUST HAVE A SCIENTIFIC BASIS THE APPEALS COURT WROTE THE COURT SAID THE ONLY ISSUE IS WHETHER THE JUDGE FEELS THAT THE FACILITATOR IS RELIABLY TRANSLATING THE TESTIMONY IF THE JUDGE DOUBTS THE RELIABILITY THEN ANOTHER TRANSLATOR CAN BE SOUGHT THE COURT SAID THE CASE BEFORE THE APPEALS COURT INVOLVES CHARGES OF SEXUAL ABUSE BROUGHT BY THE DEPARTMENT OF SOCIAL SERVICES FOR ORANGE COUNTY NY AGAINST THE PARENTS OF AN AUTISTIC GIRL THE GIRL'S TESTIMONY THROUGH FACILITATED COMMUNICATION IS EXPECTED TO BE IMPORTANT TO THE CASE LEWIS BOROFSKY THE ATTORNEY FOR THE COUNTY SAID THE CASE WILL GO BACK TO THE LOWER COURT FOR A HEARING ON THE RELIABILITY OF THE FACILITATOR THE ATTORNEY FOR THE FATHER OF THE CHILD WHO ARGUED AGAINST THE USE OF A FACILITATOR DECLINED TO COMMENT A FEDERAL JURY IN WICHITA KAN FOUND THAT CHICAGO ACCOUNTING FIRM GRANT THORNTON AND A SMALLER FIRM WEREN'T NEGLIGENT IN AUDITS THEY DID FOR A DEFUNCT SAVINGS AND LOAN THE CASE IS ONE OF THE FEW TIMES THAT AN ACCOUNTING FIRM HAS GONE TO TRIAL AND BEATEN A GOVERNMENT LAWSUIT ALLEGING LIABILITY FOR INADEQUATELY AUDITING A SAVINGS AND LOAN THAT SUBSEQUENTLY FAILED ACCOUNTING FIRMS AND ATTORNEYS FOR FINANCIAL INSTITUTIONS HAVE BEEN HIT WITH MORE THAN 1 BILLION IN DAMAGES IN SUCH CASES LARGELY AS A RESULT THE FIRMS HAVE ROUTINELY SETTLED THE CASES OUT OF COURT THE SUIT AGAINST GRANT THORNTON BROUGHT BY THE FEDERAL DEPOSIT INSURANCE CORP ALLEGED THAT THE FIRM WAS NEGLIGENT FOR FAILING TO EXERCISE PRUDENT CARE IN TWO AUDITS OF THE ROOKS COUNTY SAVINGS ASSOCIATION IN PLAINVILLE KAN THE THRIFT COLLAPSED IN 1988 AT A COST TO THE GOVERNMENT OF 23 MILLION REGULATORS SAID IN THEIR SUIT THAT MORE CAREFUL AUDITING WOULD HAVE DISCLOSED INADEQUATE LOANLOSS RESERVES AND POOR UNDERWRITING FOX & CO A SMALLER ACCOUNTING FIRM THAT IS NOW PART OF GRANT THORNTON ALSO WAS NAMED IN THE SUIT AND FOUND NOT LIABLE MARGARET M ZAGEL GENERAL COUNSEL FOR GRANT THORNTON SAID THE FIRM CONSIDERED A GOVERNMENT OFFER TO SETTLE OUT OF COURT FOR 9 MILLION IT SETTLED A SIMILAR SUIT THIS YEAR INVOLVING SUNBELT SAVINGS ASSOCIATION OF TEXAS FOR 47 MILLION SHE SAID BUT THIS TIME IT OPTED TO GO TO TRIAL WE WORKED LIKE HELL TO GET A SIMPLE STORY TO A JURY AND WE DID THE ACCOUNTANTS AUDITED THEY DID THEIR JOB AND THEY WEREN'T RESPONSIBLE FOR THE LOSSES SAID MS ZAGEL AN FDIC SPOKESMAN DECLINED TO COMMENT GAY CIVILRIGHTS LAW MINNESOTA GOV ARNE CARLSON SIGNED LEGISLATION FRIDAY TO PROTECT LESBIANS AND GAY MEN FROM DISCRIMINATION IN HOUSING EMPLOYMENT AND EDUCATION THE ASSOCIATED PRESS REPORTED THE LAW EFFECTIVE AUG 1 MAKES MINNESOTA THE EIGHTH STATE TO OUTLAW DISCRIMINATION BASED ON SEXUAL ORIENTATION THE OTHER STATES ARE CALIFORNIA CONNECTICUT HAWAII MASSACHUSETTS NEW JERSEY VERMONT AND WISCONSIN 9304050037 930405 BUSINESS BRIEF MAZDA MOTOR CORP BASE PRICES OF CERTAIN CARS LIGHT TRUCKS ARE INCREASED MAZDA MOTOR CORP SAID IT RAISED THE BASE PRICE ON SEVERAL CARS AND LIGHT TRUCKS BY AS MUCH AS 44 OR 346 FROM INTRODUCTORY 1993 MODEL YEAR PRICES THE JAPANESE AUTO MAKER SAID IT DID SO BECAUSE OF HIGHER COSTS RELATED TO PRODUCTION IMPORTATION AND DISTRIBUTION MAZDA'S VEHICLES ARE NOW PRICED AS MUCH AS 114 HIGHER THAN THE INTRODUCTORY 1992 MODEL YEAR PRICES THE BASE PRICE OF THE LEAST EXPENSIVE MAZDA THE 323 HATCHBACK IS NOW PRICED AT 7795 UP 44 OR 346 COMPARED WITH THE 1993 INTRODUCTORY PRICE LAST FALL MAZDA SAID IT ALSO RAISED TRANSPORTATION CHARGES BY 25 TO 375 FOR PASSENGER CARS AND TO 425 FOR ITS MINIVAN AND FRONTWHEEL DRIVE TRUCKS THE BASE PRICES OF MX5 MIATA AND RX7 SPORTS CARS WEREN'T RAISED BUT MAZDA DID INCREASE OPTION PACKAGE PRICES OFFERED ON BOTH MODELS THAT MEANS A TWODOOR FIVESPEED MX5 MIATA WITH A BASE POWER OPTION PACKAGE NOW COSTS 16600 200 HIGHER THAN THE INTRODUCTORY 1993 MODEL 9304050036 930405 INTERNATIONAL BRIEF HOECHST AG CHEMICAL COMPANY IS HIT BY 2 ADDITIONAL ACCIDENTS GERMAN CHEMICAL COMPANY HOECHST AG WAS HIT BY ITS 12TH AND 13TH ENVIRONMENTAL MISHAPS IN JUST SIX WEEKS FUELING SKEPTICISM ABOUT THE COMPANY'S EXPLANATION THAT IT IS MERELY AN UNFORTUNATE SEQUENCE OF EVENTS KLAUS TOEPFER GERMAN ENVIRONMENT MINISTER AND JOSCHKA FISCHER HESSE STATE ENVIRONMENT MINISTER DEMANDED THOROUGH EXAMINATIONS OF HOECHST'S STRUCTURAL ORGANIZATION MR TOEPFER FURTHER CALLED FOR AN ABSOLUTE DIVISION OF RESPONSIBILITY BETWEEN PRODUCTION AND SAFETY OPERATIONS AS WELL AS AN IMPROVEMENT OF SAFETY GUIDELINES FOR ALL GERMAN CHEMICAL FACILITIES ON FRIDAY AN OVERFILLED VAT AT THE COMPANY'S GRIESHEIM WORKS CAUSED A CHEMICAL SPILL BUT IT WAS DUBBED A MINOR ACCIDENT SEVERAL HOURS LATER A RUPTURED PIPE AT THE COMPANY'S MAIN FRANKFURT FACILITY RELEASED A CLOUD OF POISONOUS GAS CONTAINING A FORM OF SULPHURIC ACID INTO THE AIR SULPHURIC ACID CAN CAUSE BURNING OF THE SKIN EYES AND THROAT 13 HOECHST EMPLOYEES COMPLAINED OF SUCH SYMPTOMS 9304050035 930405 BUSINESS BRIEF SPRINT CORP TELECOMMUNICATIONS FIRM ANNOUNCES FOREIGN CONTRACT SPRINT CORP SAID IT RECEIVED A CONTRACT VALUED AT TENS OF MILLIONS OF DOLLARS FROM A GROUP OF 32 FOREIGN TELECOMMUNICATIONS CARRIERS TO PROVIDE VOICE AND DATA TRANSMISSION CIRCUITS IN THE US SPRINT BASED IN KANSAS CITY MO IS THE THIRD CARRIER TO ANNOUNCE A CONTRACT WITH THE GROUP CALLED THE MULTINATIONAL INITIATIVE MOST OF THE GROUP'S TRANSMISSIONS NOW ARE HANDLED BY AMERICAN TELEPHONE & TELEGRAPH CO THE MULTINATIONAL INITIATIVE INCLUDES EUROPEAN ASIAN AND SOUTH AMERICAN CARRIERS INCLUDING BRITISH TELECOMMUNICATIONS PLC AND FRANCE TELECOM MCI COMMUNICATIONS CORP BASED IN WASHINGTON ON THURSDAY SAID IT WILL PROVIDE THE GROUP WITH SIMILAR DIGITAL TRANSMISSION LINES TO CARRY CALLS AND DATA TRAFFIC FROM THEIR FOREIGN NETWORKS ACROSS THE US CANADA AND MEXICO AND TELEGLOBE CANADA CANADA'S INTERNATIONAL CARRIER SAID IT PLANNED TO SIGN A SIMILAR CONTRACT 9304050034 930405 WORLD MARKETS NTT STOCK SPEARHEADS SOARING NIKKEI AVERAGE BUOYED MOSTLY BY BULLISH INVESTOR EXPECTATIONS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO TO UNDERSTAND THE CURRENT EXUBERANCE OVER JAPANESE STOCKS YOU ONLY NEED LOOK AT ONE ISSUE GIANT NIPPON TELEGRAPH AND TELEPHONE CORP YESTERDAY'S FROG TODAY'S PRINCE UNTIL RECENTLY NTT THE MOST WIDELY HELD STOCK AND THE LARGEST CAPITALIZED ISSUE IN JAPAN WAS A PARIAH ON THE TOKYO STOCK EXCHANGE BUT THE SAME SENTIMENTS THAT HAVE SENT NTT'S SHARE PRICE SOARING 75 THIS YEAR AND 13 ON THURSDAY AND FRIDAY ALONE ARE WHAT'S DRIVING UP NIKKEI SHARES VIRTUALLY ACROSS THE BOARD THOSE FORCES HAVE LITTLE TO DO WITH CURRENT ECONOMIC FUNDAMENTALS BUT THEY HAVE A GREAT DEAL TO DO WITH INVESTOR PSYCHOLOGY AND FOR NOW THAT APPEARS GOOD ENOUGH INDEED ON FRIDAY THE NIKKEI STOCK AVERAGE CLOSED AT 1944694 UP ANOTHER 34785 POINTS OR 18 ON THE DAY THE NIKKEI HAS JUMPED 16 IN THE LAST FOUR WEEKS ON MONDAY THE NIKKEI INDEX ROSE 32166 POINTS TO CLOSE THE MORNING SESSION AT 1976860 ON FRIDAY GAINERS LED DECLINERS 886 TO 227 VOLUME WAS ESTIMATED AT 15 BILLION SHARES THE BIGGEST SINGLE DAY OF TRADING IN TOKYO SINCE THE BEAR MARKET BEGAN AT THE END OF 1989 ON FRIDAY THE TOPIX STOCK INDEX WHICH INCLUDES MORE COMPANIES THAN THE NIKKEI CLOSED AT 152631 UP 5512 OR 375 IT WAS THE HIGHEST CLOSE IN OVER A YEAR FOR BOTH THE NIKKEI AND THE TOPIX NTT'S SHARE PRICE CLOSED FRIDAY AT A MILLION YEN A SHARE 8776 THE AMOUNT BY WHICH NTT HAS RISEN SO FAR THIS YEAR EQUALS THE MARKET CAPITALIZATION OF THE SINGAPORE STOCK MARKET SAYS PETER TASKER STRATEGIST AT KLEINWORT BENSON INTERNATIONAL INC MANY ANALYSTS NOW SAY NTT IS HEADED TO 12 MILLION YEN A SHARE ABOUT THE LEVEL AT WHICH THE STOCK WAS FIRST PRICED WHEN NTT WAS PRIVATIZED IN 1986 SINCE THEN ADDITIONAL NTT STOCK HAS BEEN ISSUED AND THE COMPANY'S SHARE PRICE HAS SWUNG WILDLY FROM A HIGH OF 318 MILLION YEN A SHARE TO A LOW OF 430000 YEN A SHARE LAST SUMMER BUT WHY DOES EVERYONE SUDDENLY LOVE NTT OFFICIALS AT THE TELECOMMUNICATIONS COMPANY WHO EXPECT NTT'S PROFIT TO DETERIORATE IN THE FISCAL YEAR WHICH BEGAN THURSDAY SEEM CLUELESS WE DON'T KNOW WHY PEOPLE WANT TO BUY OUR SHARES SAYS SPOKESMAN HIROYUKI KANAMARU THERE'S AN EXPECTATION THAT FROM NOW ON THE COMPANY WILL BE PROFITABLE BUT WE DON'T HAVE ANY SIGN SO FAR INSTEAD NTT IS BENEFITING FROM ALL OF THE BULLISH THEMES SOME FACT SOME WISHFUL THINKING SUDDENLY STAMPEDING THROUGH JAPAN'S FRAGILE MARKET NTT IS A HIGHPROFILE STOCK THE PRICE OF WHICH THE GOVERNMENT WANTS TO SUPPORT FOR THE LAST SIX MONTHS JAPAN'S GOVERNMENT WHICH STILL OWNS 60 OF NTT HAS BEEN POURING MONEY INTO THE STOCK MARKET THROUGH ITS CONTROL OF PENSION FUNDS AND THE POSTAL SAVINGS SYSTEM ITS OBJECTIVE HAS BEEN TO KEEP THE STOCK MARKET FROM CRASHING AS A RESULT OF JAPAN'S CONTINUING ECONOMIC SLUMP SO FAR THAT STRATEGY HAS WORKED AND NTT HAS BENEFITED ENORMOUSLY NTT IS LIKELY TO GAIN FROM THE GOVERNMENT'S PLANNED EMERGENCY FISCAL STIMULUS PROGRAM WHICH IS EXPECTED TO BE PUBLICLY VALUED AT MORE THAN 107 TRILLION YEN 9390 BILLION LOTS OF WELLORCHESTRATED HOOPLA ATTACHED TO THE YETTOBEANNOUNCED MEASURE HAS BEEN THE CHIEF FORCE BEHIND THE RECENT UPSWING IN THE MARKET OVERALL INVESTORS ARE BETTING THE PROGRAM WILL INCLUDE SPENDING ON TELECOMMUNICATIONS INFRASTRUCTURE MR TASKER THE MARKET STRATEGIST ALSO EXPECTS JAPANESE OFFICIALS TO LEGISLATE A RATE INCREASE FOR NTT HE'S BULLISH ON THE STOCK BECAUSE THE GOVERNMENT CONTROLS THE PROFITS BY CONTROLLING TELEPHONE RATES THIS ISN'T JUST ANY STOCK MR TASKER SAYS IT'S THE MOST WIDELY HELD STOCK IN THE MARKET THE PSYCHOLOGICAL EFFECTS OF THIS STOCK GOING UP ARE HUGE NTT IS AN INDUSTRIAL RESTRUCTURING STOCK THE STOCK MARKET MAY BE UP BUT JAPAN IS STILL IN A NAGGING ECONOMIC SLUMP THAT'S FORCED MANY COMPANIES TO CHANGE THE WAY THEY DO BUSINESS AND NTT IS NO EXCEPTION LAST MONTH NTT ANNOUNCED IT WOULD CUT ITS PAYROLL BY 10 OR 30000 PEOPLE AND THE MARKET MAY BE APPLAUDING THIS EFFORT TO TRIM COSTS PROBLEM IS THE BENEFITS ARE A LONG WAY OFF THE MARKET IS ANTICIPATING THE FRUITS OF ECONOMIC RESTRUCTURING SAYS PATRICIA KUWAYAMA ECONOMIST AT MORGAN GUARANTY TRUST CO IN TOKYO BUT THAT WILL BE TWO OR THREE YEARS OFF NTT IS AN INTERESTRATE STOCK MANY ANALYSTS BELIEVE THE BANK OF JAPAN HOPING TO BOOST ECONOMIC RECOVERY WILL CUT ITS KEY DISCOUNT RATE FROM THE CURRENT 25 IN THE NEXT FEW MONTHS THE RECENT STRENGTH OF THE YEN HAS ALSO DISMAYED JAPANESE OFFICIALS WHO WORRY A STRONG YEN COULD HURT JAPAN'S EXPORTORIENTED ECONOMY A RATE CUT WOULD TAKE SOME OF THE SHINE OFF HOLDING YEN LONDON STOCKS IN A SESSION OF UPS AND DOWNS FRIDAY ENDED SLIGHTLY LOWER ON A POTENTIAL PRICE WAR IN THE TOBACCO SECTOR AND ON AN EARLY PLUNGE ON WALL STREET FRANKFURT PRICES WEAKENED AS TRADERS SQUARED POSITIONS AHEAD OF THE WEEKEND IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 85 POINTS TO 28699 THE FT 30STOCK INDEX EDGED UP 01 POINT TO 22233 VOLUME WAS 6066 MILLION SHARES DOWN FROM 8216 MILLION SHARES IN THE PREVIOUS SESSION IN FRANKFURT THE DAX 30STOCK INDEX FELL 983 POINTS TO 166175 ON LOW VOLUME ONLY FOUR OF THE DAX STOCKS ADVANCED AND 26 RETREATED SOME SHORTCOVERING OF OVERSOLD POSITIONS TAKEN ON EXPECTATIONS OF A GERMAN INTERESTRATE CUT LAST THURSDAY WHICH DIDN'T MATERIALIZE PUSHED THE DAX SLIGHTLY HIGHER FRIDAY BUT AGGRESSIVE SELLING IN THE FUTURES MARKET PROMPTED ANXIETY IN THE STOCK MARKET AND INVESTORS DUMPED HOLDINGS PARIS INVESTORS TOOK PROFITS FOR THE THIRD CONSECUTIVE DAY LEAVING STOCK PRICES LOWER IN MILAN PRICES ENDED LOWER BECAUSE OF A WEAKER ITALIAN LIRA AND CONTINUING UNCERTAINTY ABOUT THE EFFECT OF A CORRUPTION SCANDAL ON THE GOVERNMENT 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 9304050033 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 TRUST 25 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 9304050032 930405 BUSINESS BRIEF COUNTRYWIDE CREDIT INDUSTRIES INC DEBT RATINGS FOR FIRM UNIT ARE UPGRADED BY MOODY'S MOODY'S INVESTORS SERVICE INC RAISED ITS RATING ON COUNTRYWIDE CREDIT INDUSTRIES INC'S SENIOR DEBT TO BAA2 FROM BAA3 AND UPGRADED THE COMPANY'S PREFERRED STOCK RATING TO BAA3 FROM BA1 THE RATING AGENCY ALSO UPGRADED THE LONGTERM DEBT OF THE PASADENA CALIF COMPANY'S COUNTRYWIDE FUNDING CORP UNIT TO BAA1 FROM BAA2 AND ITS SUBORDINATED DEBT TO BAA2 FROM BAA3 ABOUT 2 BILLION OF DEBT IS AFFECTED THE UPGRADES REFLECT THE PARENT'S IMPROVED CAPITALIZATION FINANCIAL FLEXIBILITY AND QUALITY OF EARNINGS MOODY'S SAID SEPARATELY COUNTRYWIDE FUNDING CORP A RESIDENTIAL MORTGAGE LENDER SAID IT REACHED AN AGREEMENT WITH A GENERAL MOTORS ACCEPTANCE CORP UNIT TO PURCHASE A PORTFOLIO OF SINGLEFAMILY RESIDENTIAL MORTGAGE SERVICING RIGHTS TERMS WEREN'T DISCLOSED THE PORTFOLIO WITH A PRINCIPAL BALANCE OF 28 BILLION CONSISTS MOSTLY OF JUMBO FIXEDRATE MORTGAGE LOANS GENERAL MOTORS ACCEPTANCE IS A UNIT OF GENERAL MOTORS CORP 9304050031 930405 WHO'S NEWS MET LIFE NAMES HENRICKSON HEAD OF PENSION UNIT BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK METROPOLITAN LIFE INSURANCE CO NAMED ROBERT HENRICKSON HEAD OF ITS 715 BILLION PENSION INVESTMENT BUSINESS AMID PLANS TO BEGIN COMPETING MORE AGGRESSIVELY IN THE FIXEDINCOME INVESTMENT MANAGEMENT BUSINESS MR HENRICKSON WHO WAS PREVIOUSLY HEAD OF THE SECOND LARGEST INSURER'S PENSION ACTIVITIES DIRECTED AT LARGE CORPORATIONS SUCCEEDS TED ATHANASSIADES WHO WAS RECENTLY NAMED PRESIDENT AND CHIEF OPERATING OFFICER METROPOLITAN LIFE IS IN THE MIDST OF SEVERAL CHANGES IN ITS LEADERSHIP HENRY KAMEN FORMER SENIOR EXECUTIVE VICE PRESIDENT BECAME CHAIRMAN AND CHIEF EXECUTIVE APRIL 1 SUCCEEDING ROBERT SCHULTZ WHO RETIRED MR HENRICKSON IS TAKING OVER THE REINS IN THE INSURER'S PENSION DIVISION DURING A CRITICAL TIME FOR MET OVER THE LAST YEAR INSURERS HAVE SEEN THEIR GUARANTEED INVESTMENT CONTRACT BUSINESS THREATENED BY QUESTIONS ABOUT THE FINANCIAL HEALTH OF INSURERS THROUGHOUT THE 1980S LARGE INSURERS LIKE MET SOLD BILLIONS OF DOLLARS OF GICS TO PENSION FUNDS NOW HOWEVER MANY INSURERS EVEN THOSE LIKE MET WHOSE FINANCIAL HEALTH IS NOT IN QUESTION ARE TURNING TO NEW TYPES OF GICS WHICH OFFER PENSION FUNDS MORE SAFETY SUCH AS SEPARATE ACCOUNT GICS THESE GICS ALLOW CORPORATE CUSTOMERS TO SEGREGATE THEIR INVESTMENTS FROM THE INSURER'S ACCOUNT GIVING THEM INSULATION FROM INVESTMENT TROUBLES AT THE INSURER MR HENRICKSON SAID MET LIFE WHICH CURRENTLY HAS SOLD ROUGHLY 7 BILLION IN SEPARATE ACCOUNT GICS TO CORPORATIONS IS FOCUSING ON BUILDING THAT BUSINESS HE ALSO SAID THE INSURER IS CONCENTRATING ON BUILDING ITS FIXEDINCOME INVESTMENT MANAGEMENT BUSINESS CLIENTS ARE NOW BEGINNING TO SEE MET AS AN ASSET MANAGER RATHER THAN JUST A GIC PROVIDER HE SAID OUR ENERGY IS BEING DEVOTED TO AN ARRAY OF PRODUCTS WIDER THAN JUST SEPARATE ACCOUNT GICS HE SAID MR HENRICKSON SAID THE INSURER EXPECTS TO BEGIN OFFERING A NUMBER OF NEW INVESTMENT FUNDS TO PENSION CLIENTS INCLUDING BOND AND EQUITY FUNDS ONE AREA THE INSURER WILL CONCENTRATE ON HE SAID IS PUTTING TOGETHER FUNDS INVESTED IN PRIVATELY PLACED DEBT AND EQUITY THAT WOULD BE OFFERED TO PENSION FUNDS INSURERS HAVE TRADITIONALLY INVESTED IN PRIVATELY PLACED DEBT AND EQUITY THOUGH THE AREA HAS NOT BEEN A TRADITONAL INVESTMENT FOR PENSION FUNDS 9304050030 930405 BUSINESS BRIEF CURRAGH INC FIRM TO SUSPEND OPERATIONS AT YUKON LEAD ZINC MINES CURRAGH INC SAID IT WILL SUSPEND OPERATIONS AT ITS TWO ZINC AND LEAD MINES IN THE YUKON BECAUSE OF WEAK MARKETS FOR THE METALS CURRAGH A TORONTO CONCERN SAID ITS FARO MINE WILL BE CLOSED FOR TWO MONTHS EFFECTIVE IMMEDIATELY THIS REPLACES PREVIOUSLY PLANNED SHUTDOWNS AT THE MINE THAT WERE TO TOTAL ONE MONTH NEXT SPRING AND SUMMER IT SAID CURRAGH ALSO SAID IT WILL IMMEDIATELY CLOSE ITS SA DENA HES MINE FOR THREE MONTHS THE SHUTDOWNS WILL REDUCE THE COMPANY'S PLANNED PRODUCTION OF BOTH ZINC AND LEAD THIS YEAR BY 31 AS A RESULT THE COMPANY EXPECTS TO PRODUCE 155000 METRIC TONS OF ZINC REPRESENTING ABOUT 29 OF THE WESTERN WORLD'S OUTPUT OF THE METAL CURRAGH ALSO EXPECTS TO PRODUCE THIS YEAR 63000 METRIC TONS OF LEAD OR ABOUT 14 OF THE WEST'S OUTPUT A METRIC TON EQUALS 22046 POUNDS 9304050029 930405 FOURTH FINANCIAL ACQUIRES ASSETS WICHITA KAN FOURTH FINANCIAL CORP SAID ITS BANK IV KANSAS UNIT ACQUIRED 111 MILLION OF FAILED MIDLAND BANK OF KANSAS'S DEPOSITS FROM THE FEDERAL DEPOSIT INSURANCE CORP TERMS OF THE TRANSACTION WEREN'T DISCLOSED THE MERGER OF MIDLAND'S THREE FACILITIES WILL BECOME EFFECTIVE WITHIN 90 DAYS THE BANK HOLDING COMPANY SAID BUT THE BRANCHES WERE SCHEDULED TO BE REOPENED THIS PAST WEEKEND UNDER THE BANK IV BANNER 9304050028 930405 SOUTHDOWN INC SUES BIG HOLDER ALLEGING PLANS FOR PROXY FIGHT HOUSTON SOUTHDOWN INC SUED ITS LARGEST SHAREHOLDER RICHARD C BLUM & ASSOCIATES CHARGING THAT THE SAN FRANCISCO INVESTMENT ADVISER WAS PREPARING A PROXY FIGHT AND HAD MISSTATED ITS INTENTIONS IN SECURITIES AND EXCHANGE COMMISSION FILINGS MICHAEL KLEIN A LAWYER FOR BLUM & ASSOCIATES WHICH CONTROLS NEARLY 15 OF THE CEMENT AND CONCRETE MAKER'S SHARES OUTSTANDING SAID BLUM'S 13D FILINGS WITH THE SEC HAD BEEN TIMELY AND ACCURATE HE ADDED HOWEVER THAT THE FIRM MOST LIKELY WOULD PUT UP ITS OWN NOMINEES FOR THREE DIRECTOR SPOTS UP FOR ELECTION AT THE COMPANY'S MAY 20 ANNUAL MEETING BECAUSE SOUTHDOWN FAILED TO RENOMINATE BLUM'S ONLY REPRESENTATIVE ON THE NINEMEMBER BOARD THIS SUIT IS A DESPERATE SILLY WASTE OF SHAREHOLDER MONEY BY ENTRENCHED MANAGEMENT TRYING TO SHUT US OUT MR KLEIN SAID SOUTHDOWN WHICH IS WEIGHTED DOWN WITH A HEAVY DEBT BURDEN AND A 1992 LOSS OF 406 MILLION FILED SUIT THURSDAY ASKING A HOUSTON FEDERAL JUDGE TO BLOCK ANY ATTEMPT TO TAKE CONTROL OF THE COMPANY AT THE ANNUAL MEETING TO DATE BLUM'S 13D FILINGS HAVE INDICATED ONLY THAT THE INVESTOR WANTED TO EXPLORE CONCERNS ABOUT A VARIETY OF CORPORATE GOVERNANCE ISSUES AS WELL AS BUSINESS ISSUES AND POSSIBLY SEEK A SECOND SEAT ON THE BOARD SOUTHDOWN SAID IT HADN'T RECEIVED ANY OFFICIAL NOTICE OF MORESPECIFIC INTENTIONS BUT BELIEVES THAT THEY INTEND TO INITIATE A PROXY FIGHT SAID JAMES L PERSKY SOUTHDOWN'S SENIOR VICE PRESIDENT FOR FINANCE THE BULK OF BLUM'S SHARES ARE OWNED BY THE CARPENTERS PENSION TRUST FOR SOUTHERN CALIFORNIA BLUM ADVISES THE TRUST ON VOTING ITS SHARES BLUM AND THE TRUST HAD REQUESTED TWO BOARD SEATS IN 1991 AND GOT ONE IN ITS LATEST SEC FILING IN FEBRUARY BLUM SAID IT MAY SEEK AN ADDITIONAL SEAT LAST YEAR RICHARD N TUTOR A COCHAIRMAN OF THE PENSION TRUST'S BOARD WAS ADDED TO SOUTHDOWN'S BOARD RAISING THE NUMBER OF DIRECTORS TO 10 BUT THIS YEAR THE COMPANY NOMINATED A SLATE WITHOUT MR TUTOR THAT WOULD REDUCE THE BOARD AGAIN TO NINE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY SOUTHDOWN CLOSED AT 10375 DOWN 1125 9304050027 930405 INTERNATIONAL DAIMLERBENZ ACQUISITION STUTTGART GERMANY THE SUPERVISORY BOARD OF THE GERMAN INDUSTRIAL CONCERN DAIMLERBENZ AG UNANIMOUSLY APPROVED TAKING A 51 STAKE IN DUTCH AIRPLANE MANUFACTURER NV FOKKER THE STAKE WILL BE HELD BY DAIMLER SUBSIDIARY DEUTSCHE AEROSPACE AG NO OTHER DETAILS WERE GIVEN 9304050026 930405 WHO'S NEWS CIRCUS CIRCUS CHAIRMAN BENNETT CLAIMS FORMER OFFICER TRIED TO FORCE HIM OUT BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL THE SITUATION SURROUNDING RECENT EXECUTIVE DEPARTURES AT CIRCUS CIRCUS ENTERPRISES INC GREW MURKIER AS WILLIAM G BENNETT CHAIRMAN AND CHIEF EXECUTIVE OFFICER CHARGED THAT THE COMPANY'S FORMER PRESIDENT HAD TRIED TO FORCE HIM OUT IN A PALACE COUP BUT OTHERS CLOSE TO THE SITUATION DENIED THE CHARGE MR BENNETT'S ALLEGATIONS UNDERSCORE QUESTIONS THAT HAVE BEEN RAISED IN RECENT MONTHS ABOUT MANAGEMENT CONTINUITY AND SUCCESSION AT ONE OF THE CASINO INDUSTRY'S BIGGEST AND MOST PROFITABLE PLAYERS IN THE PAST FEW MONTHS THREE LONGTIME EXECUTIVES AND DIRECTORS HAVE LEFT THE COMPANY MR BENNETT 68 YEARS OLD ALLEGED THAT GLENN SCHAEFFER WHO RESIGNED IN FEBRUARY AS PRESIDENT CHIEF FINANCIAL OFFICER AND A DIRECTOR HAD TRIED TO ALIGN OTHER SENIOR EXECUTIVES WITH HIM TO PUSH MR BENNETT INTO RETIREMENT MR BENNETT SAID THAT MR SCHAEFFER HAD PREPARED A DOCUMENT SUGGESTING HIS OUSTER AND SOLICITED OTHER TOP CIRCUS CIRCUS EXECUTIVES TO SIGN IT MR BENNETT THE CASINO COMPANY'S COFOUNDER AND LARGEST SHAREHOLDER FIRST MADE THE CHARGE IN AN INTERVIEW TO BE PUBLISHED IN TODAY'S LAS VEGAS BUSINESS PRESS MR SCHAEFFER 39 SAID IN AN INTERVIEW THAT HIS CONTRACT WITH THE LAS VEGAS COMPANY PROHIBITED HIM FROM COMMENTING WITHOUT APPROVAL BUT JAMES MUIR WHO RECENTLY RESIGNED AS CHIEF OPERATING OFFICER AND A DIRECTOR AND OTHER PERSONS CLOSE TO THE COMPANY SAID THEY HAD NEVER SEEN OR SIGNED SUCH A DOCUMENT MR SCHAEFFER ISN'T THE FIRST OF MR BENNETT'S GROOMED SUCCESSORS TO DEPART IN 1991 RICHARD P BANIS THEN PRESIDENT AND HEIR APPARENT RESIGNED AFTER MR BENNETT CHANGED HIS STATED PLANS TO RETIRE IN ADDITION TO MESSRS SCHAEFFER AND MUIR ANOTHER LONGTIME MARKETING EXECUTIVE AND BOARD MEMBER MELVIN LARSON LEFT THE COMPANY RECENTLY CLYDE TURNER A FORMER MIRAGE RESORTS INC EXECUTIVE HAS SUCCEEDED MR SCHAEFFER IN A WALL STREET JOURNAL INTERVIEW MR BENNETT CONFIRMED HIS REMARKS TO A BUSINESS PRESS REPORTER BUT EXPRESSED EXASPERATION AT THE ATTENTION THE MANAGEMENT SHAKEUP WAS GETTING HE HAS CUT HIS SALARY TO 1 A DAY UNTIL THIS SITUATION IS STRAIGHTENED OUT MR BENNETT SAID GLENN APPARENTLY WAS WORKING WITH SOME FALSE INFORMATION THAT HE COULD COME IN AND GET THE EXECUTIVES LINED UP AGAINST ME AND TAKE OVER MR BENNETT SAID IT WAS MY UNDERSTANDING THAT HE WAS TRYING TO GET ALL THE TOP EXECUTIVES IN THE COMPANY TO SIGN SOME KIND OF A DOCUMENT SAYING I WAS MAKING IRRATIONAL DECISIONS THAT I SHOULD NOT BE RUNNING THE COMPANY MR BENNETT SAID HE CONFRONTED MR SCHAEFFER BUT THEN DECIDED THAT MR SCHAEFFER COULD STAY ON A WEEK LATER MR BENNETT SAID MR SCHAEFFER RESIGNED BUT MR MUIR AND OTHERS FAMILIAR WITH THE SITUATION SAID THEY HAD NEVER SEEN OR BEEN ASKED TO SIGN ANY SUCH DOCUMENT MR MUIR SAID HE HAD CONCERNS ABOUT HIS JOB AND HAD DISCUSSED WITH MR SCHAEFFER AND OTHERS HIS RESPONSIBILITIES AS AN OFFICER AND DIRECTOR IN DECIDING WHAT COURSE TO TAKE NOT AT ANY TIME DID I EVER SEE ANY DOCUMENT RELATIVE TO ANY OF THOSE ISSUES MR MUIR SAID WILLIAM N PENNINGTON CIRCUS'S RETIRED COFOUNDER BOARD MEMBER AND A MAJOR STOCKHOLDER DEFENDED MR BENNETT'S PREROGATIVE TO MANAGE THE COMPANY'S TOP RANKS AND SAID HIS PARTNER IS A GOOD CHIEF EXECUTIVE BUT I HATE TO SEE ALL THESE CHANGES HE SAID THE CURRENT CONTROVERSY ISN'T GOOD FOR THE COMPANY OR THE BOARD OR ANYONE I'M WATCHING THE SITUATION OUTSIDE DIRECTOR ARTHUR M SMITH JR DECLINED TO COMMENT ATTEMPTS TO REACH OTHER NONMANAGEMENT DIRECTORS WEREN'T SUCCESSFUL JAMES CASHMAN III AND TONY COELHO DID NOT RETURN TELEPHONE CALLS TO THEIR OFFICES LATE FRIDAY AND THERE WAS NO ANSWER AT THE OFFICES OF FRED W SMITH 9304050024 930405 WESTERN GERMAN SALES DECLINE WIESBADEN GERMANY WHOLESALE SALES IN WESTERN GERMANY FELL A PRICEADJUSTED 5 IN FEBRUARY FROM A YEAR EARLIER IN NONADJUSTED TERMS TURNOVER AMONG WESTERN GERMANBASED WHOLESALERS FELL 8 TO 72 BILLION DEUTSCHE MARKS 452 BILLION ACCORDING TO FIGURES RELEASED BY THE FEDERAL STATISTICS OFFICE THE DECLINE WAS EVEN MORE PRONOUNCED IN THE JANUARYFEBRUARY PERIOD WHICH SAW A REAL DROP OF 9 AND A NOMINAL DROP OF 11 FOR A TOTAL REVENUE FIGURE OF 140 BILLION MARKS IN THE TWO MONTHS INFLATION ADJUSTMENTS ARE BASED ON 1985 PRICES 9304050023 930405 INTERNATIONAL FIAT UNIT OFFICIAL SURRENDERS SME CEO IS ARRESTED IN ITALY ROME A MANAGER OF A FIAT SUBSIDIARY SURRENDERED FRIDAY AND POLICE ARRESTED THE CHIEF EXECUTIVE OFFICER OF SME IN ANOTHER BUSY DAY IN ITALY'S WIDENING CORRUPTION SCANDALS RICCARDO RUGGERI CHIEF EXECUTIVE OFFICER OF FIAT DIVISION NEW HOLLAND NV APPEARED BEFORE INVESTIGATING MAGISTRATES IN MILAN WHO HAD ISSUED A WARRANT FOR HIS ARREST THE ANSA NEWS AGENCY SAID MR RUGGERI WAS ORDERED HELD UNDER HOUSE ARREST IN TURIN WHERE FIAT IS BASED THE CORRUPTION SCANDAL CHIEFLY INVOLVES KICKBACKS ON GOVERNMENT CONTRACTS BUT ALSO OTHER FINANCIAL IRREGULARITIES AMONG STATERUN COMPANIES SME CHIEF EXECUTIVE OFFICER MARIO ARTALI WAS ARRESTED IN ROME THE ANSA NEWS AGENCY SAID SME IS THE STATECONTROLLED FOOD CONGLOMERATE THAT WAS CONSIDERED A PRIME CANDIDATE IN THE GOVERNMENT'S PRIVATIZATION CAMPAIGN MEANWHILE SEVENTIME FORMER PREMIER GIULIO ANDREOTTI THE COUNTRY'S BESTKNOWN POLITICAL LEADER ABROAD APPEARED ON A STATE TELEVISION BROADCAST AND DENIED ALLEGATIONS OF MAFIA TIES IT WAS THE 74YEAROLD POLITICIAN'S MOST INDEPTH INTERVIEW SINCE MAGISTRATES INFORMED HIM IN MARCH THAT HE WAS UNDER INVESTIGATION I AM NOT AN ANGEL OR A HALFSINNER MAYBE NOTHING BUT A COMPLETE SINNER BUT NOT IN POLITICS OR THE MAFIA IN THESE I AM MORE THAN AN ANGEL SAID THE DEAN OF CHRISTIAN DEMOCRATS MEANWHILE RAFFAELE SANTORO CHAIRMAN OF AGIP SPA THE STATEOWNED OIL EXPLORATION COMPANY WAS RELEASED FROM PRISON FRIDAY IN MILAN AND ALLOWED TO GO UNDER HOUSE ARREST MR SANTORO HAD BEEN ARRESTED MARCH 11 FOR QUESTIONING IN THE SCANDAL ALONG WITH PIO PIGORINI CHAIRMAN OF GAS COMPANY SNAM SPA WHO WAS ALLOWED TO GO FREE AGIP AND SNAM ARE SUBSIDIARIES OF ITALY'S GIANT STATE ENERGY COMPANY ENTE NAZIONALE IDROCARBURI KNOWN AS ENI 9304050022 930405 GLOBAL VIEW HELP YELTSIN YES BUT DON'T OVERSELL AID BY GEORGE MELLOAN IF OPINION POLLS ARE TO BE BELIEVED MOST AMERICANS OPPOSED THE 1 BILLION AID OFFER PRESIDENT CLINTON WAS TO MAKE TO BORIS YELTSIN IN VANCOUVER OVER THE WEEKEND POLL RESPONDENTS APPARENTLY AREN'T PERSUADED BY MR CLINTON'S ARGUMENT THAT BUYING RUSSIA'S FRIENDSHIP IS A LOT CHEAPER THAN ARMING THE US TO COPE WITH THE CONSEQUENCES OF ALLOWING RUSSIA TO ONCE AGAIN BECOME A DEADLY ENEMY POLLS ASIDE THERE ARE INDEED PROBLEMS WITH THE US PRESIDENT'S RATIONALE TO BE SURE HE IS QUITE CORRECT IN BACKING THE RUSSIAN PRESIDENT'S EFFORTS TO OVERRIDE A PARLIAMENT DOMINATED BY OLD COMMIES THEY WANT TO DENY RUSSIA A NEW CONSTITUTION A POPULARLY ELECTED PARLIAMENT AND A RULE OF LAW IF THEY SUCCEED IT WILL BE HARDER TO BRING RUSSIA INTO THE COMMUNITY OF PEACEFUL AND PROGRESSIVE NATIONS BUT IT WAS PERFECTLY EASY FOR MR CLINTON TO MAKE THAT CASE WITHOUT ATTEMPTING TO JUSTIFY THE 1 BILLION OUTLAY AS A SUBSTITUTE FOR US SPENDING ON NATIONAL SECURITY HIS ARGUMENT IS EASILY SPOTTED AS IMPROVISATIONAL AND HAS TWO SERIOUS FLAWS AMERICANS ARE NOT GREAT BELIEVERS IN THE EFFECTIVENESS OF MONETARY AID AS A TOOL OF FOREIGN POLICY TO BE SURE DESIGNERS OF THE AID PACKAGE FOR YELTSIN HAVE TAKEN PAINS TO TARGET THE SPENDING SO AS TO HAVE A QUICK IMPACT ON THE LIVES OF ORDINARY RUSSIANS FOR EXAMPLE BY FINANCING OIL PIPELINE REPAIRS AND SUPPORTING US COMPANIES IN LAUNCHING JOBCREATING JOINT VENTURES BUT THE HISTORY OF US AID PROGRAMS OFFERS ALL TOO MANY EXAMPLES OF MONEY SQUANDERED BY THE BUREAUCRATS ACTUALLY RESPONSIBLE FOR WRITING THE CHECKS MORE SERIOUSLY THERE IS NO WAY ANY FOREIGN AID PROGRAM CAN COMPENSATE FOR A WEAK US DEFENSE POSTURE THE IDEA THAT IT CAN BE SUCH AN ALTERNATIVE IS SEEN BY DEFENSE EXPERTS AS NOT ONLY WRONG BUT DANGEROUS IF THE CLINTON ADMINISTRATION PLANS TO GUT THE US DEFENSE BUDGET AS SEEMS TO BE THE CASE IT SHOULD DEFEND ITS ACTIONS DIRECTLY NOT PRETEND THAT IT IS DEVISING AN EFFECTIVE ALTERNATIVE TO NATIONAL DEFENSE IF THERE IS ANY SINGLE CRITICISM OF MR CLINTON THAT STRIKES HOME IT IS THAT HIS POLICIES TEND TO BE REACTIVE WITH IMPROVISATIONS COMING FIRST AND SALES TALKS LATER MOST LIKELY THE IDEA OF SELLING THE RUSSIAN AID PACKAGE AS A WAY TO SAVE MONEY ON WEAPONS WAS NOTHING OTHER THAN AN AFTERTHOUGHT A SKILLFUL WAY TO SEEK BACKING FOR THE 1 BILLION PROJECT BUT NATIONAL SECURITY DESERVES MORE SERIOUS DEBATE THAN THATSOMETHING IT HAS NOT BEEN GETTING GUTTING THE DEFENSE BUDGET HAS BEEN JUSTIFIED AS AN APPROPRIATE RESPONSE TO THE END OF THE COLD WAR BUT IT HAS NOT ESCAPED THE NOTICE OF MR CLINTON'S CRITICS THAT THE OUTLOOK FOR WORLD PEACE GROWS GLOOMIER EVERY DAY COLD WAR OR NOT THEY SUSPECT WITH CONSIDERABLE JUSTIFICATION THAT THE DEFENSE BUDGET HAS SIMPLY FALLEN VICTIM TO A COMPELLING DESIRE WITHIN THE CLINTON CAMP TO SPEND FEDERAL MONEY ELSEWHERE WITHOUT BALLOONING THE DEFICIT TO POLITICALLY UNACCEPTABLE LEVELS INFRASTRUCTURE GRANTS TO MAYORS AND COUNTY COMMISSIONERS CERTAINLY OFFER GREATER POLITICAL RETURNS THAN THE MONEY SPENT DEPLOYING US TROOPS ABROAD THE DANGER MR CLINTON RUNS HOWEVER IS THAT THERE WILL SOON BE A VERY LARGE GAP BETWEEN HIS REACTIVE APPROACH TO FOREIGN POLICY AND THE MEANS HE HAS AVAILABLE TO SUPPORT WHATEVER ACTIONS HE MIGHT WISH AND INDEED NEED TO TAKE IN DEFENSE OF US INTERESTS TO SOME DEGREE US FOREIGN POLICY HAS ALWAYS BEEN REACTIVE FOR THE SIMPLE REASON THAT IT IS IMPOSSIBLE TO ANTICIPATE FUTURE THREATS WITH ANY GREAT ACCURACY BUT THAT IS NO EXCUSE FOR NOT THINKING ABOUT WHETHER THE US WILL HAVE THE FUTURE MEANS TO COPE WITH SOME OF THE MORE OBVIOUS DANGERS THAT THE WORLD PRESENTS AS WEAPONS PROCUREMENT PLUMMETS AND A WORLDWIDE DISENGAGEMENT OF US TROOPS PROCEEDS THERE IS VERY LITTLE EVIDENCE OF A LONGRANGE STRATEGY OR EVEN OF A BELIEF WITHIN THE CLINTON ADMINISTRATION THAT ONE IS NECESSARY THE DANGER IN THIS IS THAT THE US PRESIDENT MIGHT BLUNDER INTO A MILITARY COMMITMENT THE US IS NO LONGER CAPABLE OF FULFILLING DEFENSE BUDGETS ARE NOTORIOUSLY WASTEFUL BUT THE PROCESSES FOR CUTTING THEM MAINLY BECAUSE THEY ARE GUIDED BY POLITICAL INTERESTS ARE OFTEN JUST AS SLOPPY AS THE PROCESSES FOR EXPANDING THEM THE MUSCLE OFTEN DISAPPEARS MORE RAPIDLY THAN THE FAT AT BEST OPERATIONAL READINESS AND MORALE SUFFER FROM THE DISLOCATIONS OF BASE CLOSINGS FORCE REDUCTIONS AND CUTBACKS IN TRAINING AND MAINTENANCE THE MOST IMMEDIATE ISSUE CONFRONTING MR CLINTON IS NOT VAST RUSSIA BUT A NASTY LITTLE PLACE CALLED BOSNIA HAVING FAILED TO PREVENT THE SLAUGHTER IN BOSNIA THE WEST HAS UNDERTAKEN TO TRY TO STOP IT MAINLY THROUGH THE VANCEOWEN PEACE PLAN OVER THE WEEKEND BOSNIAN SERBS AGAIN REJECTED THE PLAN SO AT LEAST ONE DECISION BY THE WEST HAS BEEN FURTHER POSTPONED THAT DECISION IS WHETHER TO SEND IN GROUND TROOPS TO ENFORCE A PEACE SHOULD ALL SIDES AGREE TO ONE THAT SOUNDS EASY ENOUGH ON THE SURFACE BUT THERE ARE PLENTY OF EXPERT DOUBTS IN NATO AND ELSEWHERE WITHIN THE DEFENSE COMMUNITY ABOUT WHETHER EVEN NOW THE WEST COULD PUT TOGETHER A FORCE STRONG ENOUGH TO ENFORCE A PEACE GIVEN THE DEFENSE SPENDING CUTS IN EUROPE AND THE UNWILLINGNESS OF GERMANY TO INVOLVE ITSELF IN YUGOSLAVIA WHERE ITS WORLD WAR II PRESENCE HAS BEEN NEITHER FORGOTTEN NOR FORGIVEN THE HEAVIEST BURDEN OF ENFORCEMENT WOULD FALL ON THE US BUT THE US HAS BEEN WITHDRAWING FORCES FROM EUROPE AND WOULD BE HARDPRESSED EVEN NOW TO PUT TOGETHER A COMBAT UNIT SUFFICIENTLY LARGE ENOUGH TO INTIMIDATE INTO SILENCE THE SERB FORCES THAT ARE PRESSING THE FIGHT IN BOSNIA IT IS A MILITARY AXIOM FORGOTTEN BY SOME PAST AMERICAN PRESIDENTS AT GREAT COST THAT OVERWHELMING FORCE IS THE SUREST WAY TO HOLD CASUALTIES AT A MINIMUM IF THE WEST IS RAPIDLY BECOMING TOO WEAK TO COPE WITH SERBIA WHAT ARE ITS CHANCES IF EVEN LARGER THREATS SHOULD ARISE IN THE IMMEDIATE SENSE IT IS POSSIBLE TO EXAGGERATE THESE DANGERS CHINA IS MODERNIZING ITS FORCES BUT MUST SOLVE ORGANIZATIONAL PROBLEMS BEFORE IT BECOMES A MAJOR POWER NORTH KOREA HAS A LARGE ARMY AND IS STRIVING TO BE A NUCLEAR POWER BUT MAY COLLAPSE ECONOMICALLY BEFORE IT CAN BRANDISH NUKES IRAN IS ARMING BUT PREFERS TO EMPLOY MUSLIM FANATICS IN TERRORIST SCHEMES RATHER THAN LAUNCH NEW MILITARY ADVENTURES AT LEAST FOR THE MOMENT SADDAM IS A FEW YEARS YET MOST LIKELY FROM REBUILDING HIS ARMY AS FOR RUSSIA ITSELF ITS MILITARY FORCES ARE FOR THE MOMENT DEPLETED DISORGANIZED AND DEMORALIZED MR CLINTON DISPLAYED GOOD JUDGMENT IN STAGING THE VANCOUVER SUMMIT ON BEHALF OF THE BELEAGURED MR YELTSIN BUT THAT IS ONLY TODAY'S PROBLEM IF HE IS NOT GIVING SOME THOUGHT TO TOMORROW'S PROBLEMS AND WHETHER HE CAN MEET THEM HE SHOULD BE 9304050021 930405 KLM CALLS MERGER OF FOUR AIR CARRIERS UNLIKELY BEFORE 1997 SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM KLM ROYAL DUTCH AIRLINES RULED OUT A FULL MERGER WITH THREE EUROPEAN AIRLINES UNTIL AT LEAST 1997 A SPOKESMAN FOR THE 38 STATEOWNED DUTCH FLAG CARRIER SAID THE POLITICAL BALANCE IS SUCH THAT KLM SCANDINAVIAN AIRLINE SYSTEM AUSTRIAN AIRLINES AND SWISSAIR WILL NOT MERGE ANY TIME SOON HOWEVER HE SAID WORKING GROUPS ARE EXAMINING THE POSSIBILITY OF SETTING UP AN UMBRELLA MANAGEMENT COMPANY THE GROUPS ARE TO REPORT ON THEIR FINDINGS IN MAY THE IDEA OF AN UMBRELLA HOLDING COMPANY HAS APPEARED IN THE MEDIA OVER THE LAST FEW MONTHS ALTHOUGH THE AIRLINES HAVE SAID THEY LIKELY WOULD CONTINUE TO OPERATE AS SEPARATE ENTITIES A KLM OFFICIAL AT THE COMPANY'S AMSTELVEEN HEADQUARTERS STRESSED THAT IT IS STILL TOO EARLY TO SAY WHAT IF ANY FORM OF COOPERATION WILL BE AGREED UPON HOWEVER IF THE FOUR AIR CARRIERS WOULD AGREE AND WIN THE NECESSARY APPROVALS FROM GOVERNMENTS SHAREHOLDERS AND UNIONS SUCH AN UMBRELLA COMPANY COULD BE ESTABLISHED AS SOON AS JAN 1 1994 THE OFFICIAL SAID ONE OBSTACLE TO FULLY MERGING THE FOUR AIRLINES SOON THE KLM SPOKESMAN SAID IS THE PROBLEM OF INTERNATIONAL LANDING RIGHTS THESE USUALLY ARE ALLOCATED TO AIRLINES THROUGH BILATERAL NATIONAL TREATIES THE FOURWAY MERGER WOULD AFFECT THE NATIONAL INTERESTS OF SEVERAL COUNTRIES AND EXISTING BILATERAL AIRLINE TREATIES ARE UNCLEAR AS TO HOW THEY WOULD ACCOMMODATE A FULL MERGER IF AT ALL MOREOVER A FULL MERGER WOULD REQUIRE THE APPROVAL OF THE EUROPEAN COMMUNITY AS WELL AS INDIVIDUAL GOVERNMENTS INCLUDING THE US FOR EXAMPLE KLM HAS A SIZABLE MINORITY INTEREST AND FARREACHING BUSINESS INTEGRATION WITH NORTHWEST AIRLINES SAS HAS A COOPERATIVE ARRANGEMENT WITH CONTINENTAL AIRLINES AND SWISSAIR COOPERATES WITH DELTA AIRLINES 9304050020 930405 BUSINESS BRIEF NATIONAL CITY CORP SIGNS AGREEMENT TO BUY OHIO BANCORP FOR 200 MILLION NATIONAL CITY CORP AGREED TO BUY OHIO BANCORP FOR 200 MILLION FIVE WEEKS AFTER PNC BANK CORP CALLED OFF AN ACCORD TO BUY THE YOUNGSTOWN OHIO BANK FOR 250 MILLION THE AGREEMENT THE LATEST IN A WAVE OF MERGERS AMONG REGIONAL AND NATIONAL BANKS APPEARED TO END OHIO BANCORP'S AWKWARD SEARCH FOR A MATE WHICH BEGAN LAST NOVEMBER THE BANK PUT ITSELF ON THE BLOCK AMID HEAVY LOSSES FROM LOANS TO PHARMOR INC THE DISCOUNT DRUGSTORE CHAIN IN BANKRUPTCYLAW PROCEEDINGS PNC BASED IN PITTSBURGH AGREED TO BUY THE BANK IN DECEMBER BUT BACKED DOWN IN LATE FEBRUARY AFTER A DUEDILIGENCE REVIEW PNC DIDN'T PROVIDE A REASON BUT OTHERS SAY IT DIDN'T LIKE THE BANK'S MANAGEMENT AND CONTROLS FIVE OFFICERS HAD UNEXPECTEDLY LEFT OHIO BANCORP AND IT WAS UNDER INVESTIGATION FOR VIOLATIONS OF THE BANK SECRECY ACT NATIONAL CITY BASED IN CLEVELAND SAID IT WOULD HAVE MORE MANAGEMENT CONTROL OVER OHIO BANCORP THAN PNC WHICH ISN'T STRONG IN OHIO NATIONAL CITY WILL FOLD THE BANK INTO ITS AKRON DIVISION AND PLANS TO CUT COSTS 25 CLEARLY AN INMARKET DEAL IS MUCH EASIER TO CONTROL SAID DAVID DABERKO DEPUTY CHAIRMAN OF NATIONAL CITY HE SAID OHIO BANCORP'S TROUBLES ARE BEHIND IT INCLUDING A 2 MILLION RESERVE FOR VIOLATIONS OF THE BANK SECRECY ACT WE'RE QUITE COMFORTABLE THAT WE UNDERSTAND THE SITUATION AND WE'RE OPTIMISTIC THE BANK IS HEADING IN AN UPWARD DIRECTION HE SAID ADDING THAT OHIO BANCORP WOULD BE PROFITABLE THIS YEAR NATIONAL CITY IS PAYING 28 A SHARE INSTEAD OF THE 31 A SHARE PNC WOULD HAVE PAID AND WILL MAKE HALF OF THE PURCHASE WITH CASH INSTEAD OF THE ENTIRELY STOCK TRANSACTION PNC PLANNED NATIONAL CITY EXPECTS TO CLOSE THE TRANSACTION AT THE END OF THE THIRD QUARTER AFTER REGULATORY AND SHAREHOLDER APPROVAL NATIONAL CITY TOPPED THREE OTHER BIDDERS WHICH THE BANKS DECLINED TO DISCLOSE THE OTHER CONTENDERS WERE BELIEVED TO INCLUDE SOCIETY CORP AND FIFTH THIRD BANCORP AND MAY ALSO HAVE INCLUDED BANC ONE CORP FIRST BANCORP OF OHIO AND HUNTINGTON BANCSHARES INC MARK LYNCH AN ANALYST WITH LEHMAN BROTHERS CALLED THE ACQUISITION OF OHIO BANCORP WITH ASSETS OF 17 BILLION A REASONABLE DEAL FOR NATIONAL CITY WITH ASSETS OF 290 BILLION BUT HE CHARACTERIZED IT AS A FILLIN RATHER THAN ANY NEW DIRECTION FOR THE COMPANY NATIONAL CITY WAS OUTBID BY CLEVELAND RIVAL SOCIETY CORP FOR THE 12 BILLION ACQUISITION OF AMERITRUST CORP IN 1991 AND LATER PURCHASED INDIANA'S MERCHANTS NATIONAL CORP FOR 604 MILLION BUT MR DABERKO SAID THE BANK NOW PLANS ONLY SMALL ACQUISITIONS TO ADD TO ITS HOLDINGS IN KENTUCKY INDIANA AND OHIO 9304050019 930405 QUARTERLY MUTUAL FUNDS REVIEW DICEY MUTUAL FUNDS SEEN WORTH A BET BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS NOW HAVE MORE THAN 4000 MUTUAL FUNDS TO PICK FROM BUT THESE DAYS NONE OF THE CHOICES SEEM ESPECIALLY APPETIZING INVESTORS LOOKING TO ADD TO THEIR MUTUAL FUND HOLDINGS ARE CONFRONTED WITH A SLEW OF UNATTRACTIVE OPTIONS MONEY MARKET FUND YIELDS ARE UNDER 3 A LOT OF BOND FUNDS ARE PAYING LESS THAN 6 AND MANY INVESTORS ARE QUEASY ABOUT STOCK FUNDS WHICH HAVE SOARED AN AVERAGE 70 SINCE THE OCTOBER 1990 MARKET LOW FACED WITH THESE UNPALATABLE CHOICES WHAT'S AN INVESTOR TO DO MUTUAL FUND ANALYSTS OFFER A SURPRISING ANSWER IF YOU HAVE A LONG TIME HORIZON CONSIDER BETTING ON SMALLERCOMPANY STOCK FUNDS AND FOREIGNSTOCK FUNDS TWO OF THE DICIEST AREAS OF THE MUTUAL FUND WORLD AT THIS POINT IN TIME AND ALSO FROM A LONGTERM VIEWPOINT WE'D WANT TO SKEW MORE HEAVILY TOWARD SMALLCOMPANY STOCKS TOWARD GROWTH STOCKS TOWARD FOREIGN MARKETS AND TOWARD EMERGING MARKETS SAYS KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER MR GREGORY PICKED THE FUNDS FOR THE AGGRESSIVE MUTUAL FUND PORTFOLIO SHOWN IN THE ACCOMPANYING CHART THE PORTFOLIO IS INTENDED FOR INVESTORS WHO PLAN TO STASH AWAY MONEY FOR AT LEAST 10 YEARS THE CONSERVATIVE PORTFOLIO WAS PUT TOGETHER BY KURT BROUWER PRESIDENT OF BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISER MR BROUWER'S PORTFOLIO IS FOR INVESTORS NEAR OR IN RETIREMENT WHO ARE LOOKING TO GENERATE BOTH INCOME AND CAPITAL GAINS FROM THEIR INVESTMENTS THE CONSERVATIVE PORTFOLIO HAS 60 OF ITS ASSETS IN TWO BOND FUNDS HARBOR BOND FUND AND VANGUARD SHORTTERM FEDERAL PORTFOLIO THE OTHER 40 IS SPLIT AMONG FOUR STOCK FUNDS LIKE MR GREGORY MR BROUWER IS LEANING HEAVILY TOWARD SMALLERCOMPANY STOCK FUNDS AND FOREIGN FUNDS INTERNATIONAL INVESTING WAS LOUSY LAST YEAR AND IT HAS BEEN FOR A COUPLE OF YEARS NOTES MR BROUWER AS OUR MARKET GETS HIGHER IT MAKES SENSE TO MOVE INTO OTHER MARKETS THAT ARE MORE CHEAPLY VALUED AMONG FOREIGNSTOCK FUNDS MR BROUWER FAVORS HARBOR INTERNATIONAL FUND THE FUND WHICH IS RUN BY HAKAN CASTEGREN RANKS AS THE TOPPERFORMING INTERNATIONAL FUND FOR THE PAST FIVE YEARS ACCORDING TO LIPPER ANALYTICAL SERVICES A SUMMIT NJ MUTUAL FUND RESEARCH FIRM MR GREGORY ALSO LIKES HARBOR INTERNATIONAL FUND BUT FOR HIS PORTFOLIO HE SUGGESTS USING TWO NEWER FUNDS WARBURG PINCUS INTERNATIONAL EQUITY FUND AND ACORN INTERNATIONAL THE ACORN FUND INVESTS IN SMALLERCOMPANY STOCKS AND EMERGING MARKETS THE WARBURG PINCUS FUND ALSO HAS SOME EXPOSURE TO EMERGING MARKETS BUT THE BULK OF THE FUND'S ASSETS ARE INVESTED IN MORE ESTABLISHED STOCK MARKETS WE BELIEVE THAT OVER THE LONG TERM THERE'LL BE MORE GROWTH OVERSEAS THAN IN THE US SAYS MR GREGORY THE MARKETS ARE MORE INEFFICIENT SO WE THINK A TALENTED STOCKPICKER HAS A GOOD CHANCE TO ADD VALUE OTHER FUND ANALYSTS ARE ALSO KEEN ON FOREIGNSTOCK FUNDS IF WE HAD A MAJOR DOWNTURN IN THE US MARKET OF 20 OR 30 I FEEL QUITE CONFIDENT THAT FOREIGN MARKETS WOULDN'T CORRECT TO THAT EXTENT SAYS ROBERT BINGHAM AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BINGHAM OSBORN & SCARBOROUGH INVESTING IN FOREIGN STOCKS HAS LESS OF A DOWNSIDE THAN INVESTING IN US STOCKS AMONG SMALLERCOMPANY FUNDS BOTH MR GREGORY AND MR BROUWER RECOMMEND MUTUAL DISCOVERY FUND A RECENTLY LAUNCHED FUND MANAGED BY MICHAEL PRICE MR PRICE IS BEST KNOWN AS MANAGER OF MUTUAL SHARES FUND WHICH IS NOW CLOSED TO NEW INVESTORS IN ADDITION TO MUTUAL DISCOVERY MR BROUWER LIKES STRONG OPPORTUNITY FUND WHICH INVESTS IN MIDSIZE COMPANIES AND MR GREGORY FAVORS COLUMBIA SPECIAL FUND A GROWTHSTOCK FUND THAT BUYS SMALLCOMPANY STOCKS WITH RAPIDLY INCREASING EARNINGS THE TWO ANALYSTS REMAIN BULLISH ON SMALLCOMPANY STOCK FUNDS DESPITE THE FUNDS' 94 AVERAGE GAIN DURING THE PAST 30 MONTHS SMALL CAP STOCKS STILL LOOK LIKE GOOD VALUE TO US RELATIVE TO LARGE CAP STOCKS SAYS MR GREGORY DESPITE THE RUNUP IN THE LAST FEW YEARS WE'RE STILL SEEING THE EFFECTS OF SEVEN YEARS OF UNDERPERFORMANCE WE'RE NOT ALL THE WAY THROUGH A SENTIMENT CHANGE AMONG INDIVIDUAL INVESTORS AND INSTITUTIONS WHERE THEY'VE DECIDED TO MOVE MORE MONEY INTO SMALL STOCKS MR BROUWER ALSO THINKS THE SMALL STOCK RALLY HAS FURTHER TO RUN IF YOU LOOK AT LONGTERM HISTORY WHEN SMALL STOCKS START DOING THINGS IT USUALLY LASTS FOR A LONG TIME HE NOTES YOU'VE STILL GOT AT LEAST TWO OR THREE YEARS TO GO BY FAVORING FOREIGN STOCKS AND SMALLCOMPANY STOCKS MR GREGORY AND MR BROUWER BELIEVE THEY ARE TAPPING INTO TWO UNDERVALUED AREAS THAT SHOULD OUTPERFORM OTHER STOCK FUNDS IN THE YEARS AHEAD BUT AS A HEDGE THE CONSERVATIVE PORTFOLIO HAS THE CUSHION PROVIDED BY ITS 60 BOND POSITION IN ADDITION BOTH PORTFOLIOS INCLUDE A LARGECOMPANY STOCK FUND WHICH PROVIDES FURTHER DIVERSIFICATION THE CONSERVATIVE PORTFOLIO HOLDS FIDELITY DISCIPLINED EQUITY FUND WHILE THE AGGRESSIVE PORTFOLIO INCLUDES VANGUARD WORLD US GROWTH PORTFOLIO THE AGGRESSIVE PORTFOLIO SHOULD BE VIEWED AS A VOLATILE PORTFOLIO BECAUSE IT'S ALL IN EQUITIES SAYS MR GREGORY BUT I THINK THIS IS A LOWERRISK PORTFOLIO THAN IF IT WAS JUST IN EMERGING MARKETS OR JUST IN BLUECHIP GROWTH STOCKS THIS IS A DIVERSIFIED PORTFOLIO IN ADDITION TO DIVERSIFICATION MR BROUWER AND MR GREGORY TAKE COMFORT IN THE FACT THAT THEIR PORTFOLIOS INCLUDE FUNDS RUN BY TALENTED STOCKPICKERS SUCH AS ACORN'S RALPH WANGER MUTUAL DISCOVERY'S MR PRICE AND STRONG OPPORTUNITY FUND'S RICHARD WEISS AND CARLENE MURPHY MARKET CYCLES COME AND GO SAYS MR BROUWER THESE PEOPLE HAVE A PROVEN ABILITY OF MAKING MONEY THROUGHOUT MARKET CYCLES 9304050018 930405 INDUSTRIAL ARTS TRADE SHOWS AREN'T AN ACTOR'S DREAM PERFORMERS' LIFE IS GRUELING BUT JERRY NEWTON FOR ONE HAS MADE OUT RATHER WELL BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS JERRY NEWTON HAD HOPED TO BE A HOLLYWOOD STAR BUT IT IS 15 MINUTES TO SHOW TIME AND HE IS PUTTING HIS ACTING SKILLS TO WORK SELLING SHOWER FIXTURES AT A TRADE SHOW THE PAY IS GOOD HE WOULD STILL LIKE TO MAKE TV COMMERCIALS BUT HE DOESN'T THINK MUCH ABOUT STARDOM ANYMORE STANDING IN A SPOTLIGHT NEXT TO A BANK OF KOHLER CO SHOWER STALLS AT A HOMEBUILDERS WINGDING THE 41YEAROLD ACTOR WHOSE SPECIALTY IS MAGIC TRICKS PULLS A FLAPPING DOVE FROM A PAPER BAG THAT HAD BEEN CRUMPLED INTO A BALL THEN HE DIRECTS THE ATTENTION OF HIS APPRECIATIVE AUDIENCE TO THE PLUMBING SHOWER RECEPTORS WITH A PRICEPOINT YOU CAN LIVE WITH MR NEWTON SMILES THAT SEGUES INTO A 12MINUTE ROUTINE OF RING TRICKS VANISHING BALLS AND HERE AND THERE MARKETING ONELINERS WHO'S THE NO 1 LEADER IN SHOWER PRODUCTS HE ASKS KOHLER A WOMAN SHOUTS AS HE TRANSFORMS THREE SMALL SPONGE BALLS INTO THE NUMERAL 1 THIS IS THE LIFE OF INDUSTRIAL PERFORMERS INDUSTRIALS AS THEY CALL THEMSELVES THE UNSUNG ACTORS WHO PERFORM OFTEN 16 TIMES A DAY IN CONVENTION HALLS AND SALES MEETINGS EXTOLLING EVERYTHING FROM PLASTICS TO CARS AND COMPUTERS THE ENTERTAINMENT RUNS THE GAMUT FROM SONG AND DANCE TO GAME SHOWS AND STANDUP COMEDY INDUSTRIALS PERFORM AN EXHAUSTIVE SCHEDULE THAT KEEPS THEM ON THE ROAD AS MUCH AS HALF THE YEAR FOLLOWING TRADE SHOWS AROUND THE COUNTRY SOMETIMES AROUND THE WORLD THE SPOTLIGHT FADES AT THIS END OF THE KOHLER BOOTH A SONGANDDANCE TRIO CALLED DADDY'S LADIES TAKES A NEARBY STAGE AND DRAWS ATTENTION TO A ROTATING DISPLAY OF SINKS AND TOILETS WHILE MR NEWTON'S SIDEKICK BOBBIE CANDLER AN ERSTWHILE MISS LOUISIANA AND SOMETIME SOAPOPERA ACTRESS HANDS OUT FREE BOXER SHORTS AT 15 MINUTES AFTER THE HOUR THE PAIR WILL TURN TO FAUCETS AT A QUARTER TILL IT WILL BE BACK TO THE SHOWERS SO THIS ISN'T HOLLYWOOD BUT IT AIN'T BAD MR NEWTON AN OLD HAND SAYS THE WORK PAYS HIM ABOUT A QUARTER OF A MILLION DOLLARS A YEAR AFTER EXPENSES MS CANDLER 31 SAYS HER BETWEENJOBS ACTING FRIENDS LAUGH DERISIVELY WHEN THEY HEAR ABOUT WHAT SHE IS DOING BUT WHEN THEY FIND OUT WHAT IT PAYS THEY CHANGE THEIR TUNE THEN THEY ASK HOW DO I GET INTO IT' SHE SAYS A BEGINNER CAN MAKE 500 A DAY FOR A FOURDAY GIG BEING AN INDUSTRIAL BEATS WAITING TABLES MS CANDLER SAYS BUT THE JOBS OBTAINED THROUGH REFERRALS AND AUDITIONS AREN'T A WHOLE LOT EASIER TO GET THAN A PART IN TV OR THE MOVIES TALENT SCOUTS CLAIM TO HAVE AS MANY AS 200 APPLICANTS FOR EVERY POSITION MS CANDLER WHOSE CREDITS INCLUDE BIT PARTS ON SOAP OPERAS INCLUDING THE YOUNG AND THE RESTLESS STILL ANSWERS HOLLYWOOD CASTING CALLS THAT MIGHT EVENTUALLY LAND HER A STARRING TV ROLE IT COULD HAPPEN JILL EIKENBERRY AND MICHAEL TUCKER STARS OF NBC'S LA LAW AND A MARRIED COUPLE IN REAL LIFE WORKED ON THE TRADESHOW CIRCUIT SHE DID PRODUCT NARRATIONS WHILE HE DID VOICES FOR CARTOON CHARACTERS PITCHING SOFT DRINKS AND PHARMACEUTICALS ACTOR MARTIN SHORT RECENTLY DEMONSTRATED ON THE TONIGHT SHOW WITH JAY LENO THE SKITS HE ONCE DID AS AN INDUSTRIAL STANDING UP TO SING I'D RATHER BE A FURY THAN A FORD YES I WOULD MARC FLANAGAN EMMYWINNING PRODUCER OF THE HIT CBS TV SERIES LOVE AND WAR WORKED WITH MR TUCKER DOING THE CARTOON VOICES YOU'RE LIKE CIRCUS PERFORMERS HE SAYS FEW INDUSTRIALS GO INTO ACTING WITH DREAMS OF BEING IN TRADE SHOWS MR NEWTON MADE MONEY AS A TEENAGER IN CHICAGO DOING MAGIC TRICKS AT BIRTHDAY PARTIES HE LATER TRIED TO BREAK INTO TV COMMERCIALS AGENTS SAID THEY WOULD KEEP HIS NAME ON FILE HE DID STANDUP COMEDY AND HIS MAGIC IN RESTAURANTS FINALLY A FAMILY FRIEND SUGGESTED THAT HE TRY OUT FOR A JOB PERFORMING AT A SAN FRANCISCO AUTO SHOW HE DID SOME OF HIS CARD AND SPONGE TRICKS FOR A CAR DEALER THEN MOVED ON TO GOODYEAR TIRE & RUBBER CO THEY ENDED UP BEING ONE OF MY BEST CLIENTS HE SAYS TODAY MR NEWTON DOES HIS MAGIC FOR SOME 40 TRADE SHOWS AND MEETINGS A YEAR REPRESENTING VARIOUS CLIENTS RANGING FROM CATERPILLAR INC TO KIMBERLYCLARK CORP FOR THE LATTER HE MAGICALLY PRODUCED A COMPANY VICE PRESIDENT FROM A BOX OF HUGGIES DIAPERS WHILE HE WAS EN ROUTE TO A LONDON SHOW MR NEWTON SAYS BRITISH CUSTOMS AGENTS OPENED HIS CASE OF PROPS AND DIDN'T SMILE WHEN RUBBER SNAKES AND SPONGE RABBITS CAME FLYING OUT APPARENTLY UNPERSUADED THAT HE WAS A MAGICIAN THEY HAD HIM DO TRICKS FOR 10 MINUTES AS OTHER PASSENGERS LINED UP BEHIND HIM LIKE MR NEWTON JOYFULL NOIZE AN A CAPPELLA SEXTET HAD HOPES OF STARDOM PARTICULARLY AFTER APPEARING ON THE ARSENIO HALL SHOW BUT WHEN AN AGENT CALLED TO BOOK THE SINGERS IT WASN'T A HOLLYWOOD AGENT BUT A REPRESENTATIVE OF HERBERT V KOHLER JR CHAIRMAN AND PRESIDENT OF THE COMPANY THAT BEARS HIS NAME HE WANTED THE GROUP FOR A HOME BUILDERS' SHOW SO WHEN THE SINGERS WENT ON STAGE THEY WERE FLANKED BY DANCERS IN SHOWER STALLS AND A CASCADING WATERFALL THE GROUP SANG MOTOWN TUNES AND GOSPEL SONGS LIKE JESUS GAVE ME WATER BUT WITH NEW LYRICS KOHLER GAVE ME WATER THE SINGERS WERE THRILLED TO PERFORM SOME BUILDERS SAT THROUGH THE SHOW SEVERAL TIMES BUSINESSES LOVE ACTS LIKE JOYFULL NOIZE SURVEYS SUGGEST THAT SOME OF THE BESTREMEMBERED EXHIBITS HAVE LIVE ENTERTAINMENT BUT THE TRICK SAYS SANDY ALAN PRESIDENT OF CORPORATE PRODUCTIONS A MAJOR PRODUCER OF INDUSTRIAL SHOWS IS TO CAPTURE AN AUDIENCE AND MAKE IT RECEPTIVE TO A PITCH THE ENTERTAINMENT DIRECTS ATTENTION TO THE PRODUCT WITH SALESPEOPLE ALWAYS STANDING BY PERFORMERS THEMSELVES MS ALAN SAYS HAVE TO BE EXCEEDINGLY ANXIOUS TO PLEASE THEY CAN'T BE PRIMA DONNAS THEY MUST ALSO HAVE THE STAMINA TO LIVE THE LIFE OF A CIRCUS PERFORMER INDUSTRIALS TRAVEL FROM TOWN TO TOWN STAYING IN HOTELS AND ENDURING DISCOMFORTS RANGING FROM JET LAG TO SORE FEET AND LARYNGITIS THEY ARE FAR FROM HOME FAMILY AND FRIENDS THEY HAVE TO DO A LOT OF MEMORIZING AND DON'T GET MUCH CHANCE TO PRACTICE THEIR LINES BEFORE AN OPENING PERFORMANCE THERE'S USUALLY ONLY ONE DAY OF REHEARSAL AND FOR THAT THEY EXPECT YOU TO BE PERFECT MS CANDLER SAYS MR NEWTON SPENDS UP TO 200 DAYS A YEAR ON THE ROAD AND RECENTLY HAD TO APPEAR AT 8 AM FOR AN AUTO DEALERS' SHOW IN NEW ORLEANS AFTER CATCHING A MIDNIGHT FLIGHT FROM LAS VEGAS WHERE HE HAD ENTERTAINED AT A CORPORATE COCKTAIL RECEPTION THE SHOW MUST GO ON NO MATTER HOW YOU FEEL HE SAYS BUT THE TRAVEL ISN'T ALL BAD MR NEWTON SAYS HIS CLIENTS PUT HIM UP IN THE VERY BEST HOTELS AND HE EATS FANCY CATERED FOOD AT MANY EVENTS STILL HE ALWAYS LOOKS FORWARD TO GOING HOME MR NEWTON OWNS TWO HOUSES ONE IN IRVINE CALIF AND ANOTHER IN THE HOLLYWOOD HILLS OVERLOOKING LOS ANGELES HE DRIVES A MERCEDESBENZ 9304050017 930405 INTERNATIONAL WASHINGTON INSIGHT CLINTON'S EFFORT TO DEPERSONALIZE POLICY TOWARD IRAQ MAKES ARAB ALLIES NERVOUS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION'S DECISION TO DEPERSONALIZE ITS POLICY TOWARD IRAQ MAY HAVE UNINTENDED CONSEQUENCES IT'S ENCOURAGING IRAN TO MOVE CLOSER TO SADDAM HUSSEIN AND MAKING AMERICA'S ARAB ALLIES NERVOUS FOLLOWING A POLICY REVIEW THE ADMINISTRATION IS DEEMPHASIZING THE US DESIRE TO GET RID OF SADDAM HUSSEIN AND FOCUSING INSTEAD ON MAKING SURE IRAQ COMPLIES WITH UNITED NATIONS SANCTIONS IMPOSED AFTER IRAQ'S INVASION OF KUWAIT THE US WANTS TO UNDERSCORE THAT THE IRAQI DICTATOR COULD BE REPLACED BY AN EQUALLY MALEVOLENT RULER AND THAT SANCTIONS DESIGNED TO CURB IRAQ'S AGGRESSIVE BEHAVIOR WON'T AUTOMATICALLY BE REMOVED IF SADDAM FALLS IN ADDITION THE CLINTON ADMINISTRATION IS EAGER TO SHIFT SOME OF ITS RHETORICAL FIRE TOWARD IRAN WHICH IT SEES AS A GROWING MENACE IN THE PERSIAN GULF REGION BUT SOME ANALYSTS BELIEVE IRAN'S LEADERS INTERPRET THE CHANGED US STANCE AS MEANING THAT THEIR FOE IN BAGHDAD WILL BE AROUND FOR A LONG TIME AND THEREFORE THEY HAD BETTER REACH AN ACCOMMODATION WITH HIM THE CHANGE IN EMPHASIS ALSO DISCOURAGES WHATEVER POTENTIAL OPPOSITION TO SADDAM HUSSEIN THERE MAY BE IN IRAQ AND SOME ARAB STATES ALREADY CONCERNED ABOUT THE NEW ADMINISTRATION'S FOCUS ON DOMESTIC ISSUES FEAR THE SHIFT IS A SIGN OF WEAKENING US RESOLVE THE RISK IN DEPERSONALIZING IS THAT IT WILL REINFORCE THE SENSE INSIDE IRAQ AND IN THE REGION NOT ONLY THAT SADDAM HUSSEIN IS HERE TO STAY BUT THAT THE US HAS ACQUIESCED TO THAT SAYS RICHARD HAASS THE TOP MIDEAST EXPERT FOR THE BUSH ADMINISTRATION'S NATIONAL SECURITY COUNCIL FORMER PRESIDENT BUSH INSISTED THAT THE IRAQI LEADER HAD TO GO BEFORE SANCTIONS COULD BE REMOVED OF COURSE MR BUSH'S POLICY DIDN'T OUST SADDAM HUSSEIN BUT MR HAASS DEFENDS IT ARGUING THAT DROPPING THE INSISTENCE ON SADDAM'S DEPARTURE PUTS THE NEW ADMINISTRATION ON A SLIPPERY SLOPE TOWARD ACCEPTING THE STATUS QUO IN BAGHDAD EVENTUALLY HE SAYS I EXPECT WE'LL HEAR THE ARGUMENT THAT IMPROVED BEHAVIOR MERITS A RELAXATION OF SANCTIONS PRESIDENT CLINTON ISN'T ALONE IN WANTING TO COOL THE US OBSESSION WITH THE IRAQI DICTATOR EUROPEAN LEADERS HAVE PRIVATELY TOLD MR CLINTON IT WAS FOOLISH TO FOCUS ON SADDAM AS MR BUSH DID BUT ONE EUROPEAN DIPLOMAT SAYS NOBODY WANTED THE NEW ADMINISTRATION TO STATE THE CHANGE PUBLICLY ONE REASON A PUBLIC PRONOUNCEMENT MIGHT GIVE MOMENTUM TO IMPROVED IRANIRAQ RELATIONS ZALMAY KHALILZAD A FORMER DEFENSE DEPARTMENT ANALYST NOW AT RAND CORP SAYS IRAN'S DECISION TO FLOUT THE SANCTIONS BY BUYING IRAQI OIL MAY BE PART OF THEIR JUDGMENT THAT SADDAM HUSSEIN WON'T BE GOTTEN RID OF AND THIS MAY BE THEIR WAY OF MAINTAINING AVENUES OF CONTACT IRAN AND IRAQ FOUGHT AN EIGHTYEAR WAR DURING THE 1980S BUT TODAY THEY ARE FINDING COMMON INTERESTS NO ONE CAN PREDICT WHEN THE LONGSTANDING RIVALRY BETWEEN BAGHDAD AND TEHRAN FOR DOMINANCE OF THE PERSIAN GULF REGION WILL REEMERGE FOR NOW MR KHALILZAD NOTES IRAN DOESN'T SEE BAGHDAD AS A MILITARY THREAT SO THE TEHRAN REGIME IS WILLING TO BOLSTER SADDAM HUSSEIN TO HELP MAKE HIM MORE OF A NUISANCE TO THE US THEY BELIEVE THAT HELPS KEEP THE HEAT OFF TEHRAN AS THE CLINTON ADMINISTRATION TURNS ITS ATTENTION INCREASINGLY TOWARD IRAN IRAN ALSO SEES SOME STRATEGIC OPPORTUNITIES IN A TEMPORARY ALLIANCE WITH IRAQ BOTH NATIONS WANT TO SUBVERT THE GOVERNMENTS OF EGYPT AND ALGERIA PROMOTE TERRORISM IN THE REGION AND REMOVE WESTERN INFLUENCE FROM THE PERSIAN GULF IN THAT CONTEXT AN ALLIANCE WITH THE OTHER PARIAH BECOMES POSSIBLE SAYS PATRICK CLAWSON AN EXPERT ON THE REGION AT THE NATIONAL DEFENSE UNIVERSITY PERSIAN GULF ARAB STATES THAT LIVE UNDER IRAN AND IRAQ'S SHADOW ARE INCREASINGLY NERVOUS ABOUT ALL THIS THEY ARE TEMPTED TO FOLLOW A LINE EXPRESSED IN SOME EGYPTIAN NEWSPAPER EDITORIALS THAT IRAN IS NOW THE GREATER THREAT AND IRAQ IS THE REGION'S NATURAL COUNTERBALANCE BUT THEY WORRY ABOUT DOING SO BECAUSE THEY FEAR THE US MIGHTN'T BE PREPARED TO STICK TO ITS EARLIER DEMAND THAT SADDAM HUSSEIN GO THE GROWING US CONCERN ABOUT IRAN ALSO COULD PRODUCE FRICTION BETWEEN THE US AND ITS EUROPEAN ALLIES MOST OF WASHINGTON'S FRIENDS AGREE AT LEAST THAT SADDAM HUSSEIN'S IRAQ IS AN OUTLAW NATION BUT THEY ARE LESS COMFORTABLE WITH THE US FOCUS ON IRAN WHERE THEY SEE BUSINESS OPPORTUNITIES I HAVE A FEELING THAT SOME OF OUR ALLIES MAY BE UNDULY INFLUENCED BY THE POSSIBILITY OF ECONOMIC GAIN SECRETARY OF STATE WARREN CHRISTOPHER COMPLAINED LAST WEEK 9304050016 930405 IRELAND'S JOBLESS RATE SLIPS LONDON IRELAND'S UNEMPLOYMENT RATE EASED TO A SEASONALLY ADJUSTED 177 OF THE WORK FORCE IN MARCH FROM 178 IN FEBRUARY THE CENTRAL STATISTICS OFFICE SAID 9304050015 930405 BANKS WIN RULING BY COURT IN FIGHT OVER CREDIT UNIONS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BANKS HAVE THE RIGHT TO CHALLENGE AN ATTEMPT BY A CREDIT UNION AT ONE COMPANY TO EXPAND BY SIGNING UP EMPLOYEES OF OTHER COMPANIES THE US APPEALS COURT HERE RULED THE ISSUE AROSE WHEN FOUR NORTH CAROLINA BANKS AND THE AMERICAN BANKERS ASSOCIATION CHARGED THAT THE NATIONAL CREDIT UNION ADMINISTRATION ILLEGALLY ALLOWED THE AT&T FAMILY FEDERAL CREDIT ON WHICH INCLUDED EMPLOYEES AT SEVERAL AMERICAN TELEPHONE & TELEGRAPH CO FACILITIES TO INCLUDE WORKERS AT SEVERAL NEARBY COMPANIES THE BANKS ARGUED THAT THE AGENCY WHICH REGULATES CREDIT UNIONS VIOLATED A LAW THAT LIMITS CREDIT UNION MEMBERSHIP TO GROUPS HAVING A COMMON BOND OF OCCUPATION OR ASSOCIATION A LOWER COURT RULED THE BANKS HAD NO STANDING TO SUE BUT THE APPEALS COURT REVERSED THE DECISION IT FOUND THAT THE BANKS CAN SUE BECAUSE THE LAW ARGUABLY PROHIBITS THE INCREASING COMPETITION BANKS SAY THEY ARE FACING FROM EXPANDING CREDIT UNIONS CREDIT UNIONS WHICH GENERALLY CAN LEND ONLY TO THEIR DEPOSITORS ARE EXEMPT FROM STATE AND FEDERAL TAXES ALTHOUGH THE COURTS STILL MUST DECIDE WHETHER THE REGULATORY AGENCY DID IN FACT ERR BY ALLOWING THE AT&T CREDIT UNION TO EXPAND AN OFFICIAL AT THE AMERICAN BANKERS ASSOCIATION HAILED THE RULING AS A VICTORY IT'S THE FIRST TIME THAT A COURT HAS RULED THAT BANKS HAVE THE RIGHT TO CHALLENGE CREDIT UNION EXPANSION UNDER THE AGENCY'S BROAD VIEW OF WHAT CONSTITUTES A COMMON BOND IN 1986 ANOTHER APPEALS COURT RULED THAT BANKS DIDN'T HAVE THE RIGHT TO SUE AN OFFICIAL AT THE REGULATORY AGENCY SAID THE GOVERNMENT HASN'T YET DECIDED WHETHER TO APPEAL THE RULING 9304050014 930405 ECONOMY REPUBLICAN FILIBUSTER STALEMATES BILL FOR 16 BILLION IN ECONOMIC STIMULUS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REPUBLICAN FILIBUSTER TACTICS PLUNGED THE CAPITOL BACK INTO STALEMATE AND FORCED SENATE NEGOTIATIONS OVER CUTS FROM PRESIDENT CLINTON'S 16 BILLIONPLUS ECONOMIC STIMULUS BILL BOTH HOUSES IN CONGRESS POSTPONED THEIR SCHEDULED SPRING RECESS IN HOPES THAT THE PRESIDENT'S RETURN FROM THE VANCOUVER MEETING WITH RUSSIAN PRESIDENT BORIS YELTSIN WILL BRING A RESOLUTION OF THE CONFLICT LEFT PENDING IS SEPARATE LEGISLATION NEEDED TO RAISE THE TREASURY'S BORROWING AUTHORITY TO FINANCE THE FEDERAL DEBT FOR THE WHITE HOUSE THE IMPASSE COMES AMID SIGNS OF WEAKENING BOTH IN THE ECONOMIC RECOVERY AND THE PRESIDENT'S STANDING IN POLLS APART FROM THE 163 BILLION SPENDING BILL LAWMAKERS ARE RESISTING A COSTLY INVESTMENT TAX CREDIT PROMISED IN MR CLINTON'S LARGER STIMULUS PACKAGE AND THE CONFRONTATION POSES THE MOST SERIOUS POLITICAL CHALLENGE YET TO HIS ECONOMIC PROGRAM THIS IS A WEAKER PACKAGE THAN PEOPLE HAVE REALIZED BEING PURSUED BY A WEAKER PRESIDENT THAN PEOPLE HAVE REALIZED SAID CONSERVATIVE AUTHOR KEVIN PHILLIPS REPUBLICANS SEE THE FIGHT AS AN OPPORTUNITY BOTH TO SLOW THE ADMINISTRATION'S PROGRESS AND RAISE THEIR OWN STANDING WITH COSTCONSCIOUS BACKERS OF TEXAS INDEPENDENT ROSS PEROT SENATE GOP WHIP ALAN SIMPSON OF WYOMING HAS PEPPERED HIS REMARKS IN RECENT DAYS WITH REFERENCES TO MR PEROT AND THE SAME VOTING BLOC REMAINS CENTRAL TO MINORITY LEADER ROBERT DOLE OF KANSAS WHO HAS YET TO GIVE UP HIS OWN PRESIDENTIAL AMBITIONS DOLE'S MINDSET IS I'VE GOT THESE PEROT VOTERS THAT I'VE GOT TO REACH OUT TO SAID TEXAS GOP STRATEGIST KARL ROVE GIVEN FRIDAY'S UNEMPLOYMENT NUMBERS WHICH SHOWED A LOSS OF 22000 JOBS LAST MONTH MR CLINTON IS DESCRIBED BY WHITE HOUSE OFFICIALS AS NO LESS ADAMANT THAT THE MERITS AND POLITICS OF THE FIGHT ARE ON HIS SIDE THE PRESIDENT FEELS VERY STRONGLY ABOUT THIS SAID BUDGET DIRECTOR LEON PANETTA WHILE CLOSETED IN A ROOM OFF THE SENATE FLOOR SATURDAY AND WHILE LEAVING THE NEGOTIATIONS NOW TO THE SENATE LEADERSHIP THE ADMINISTRATION IS RESERVING THE RIGHT TO RESTORE FUNDS TO THE BILL IN CONFERENCE WITH THE HOUSE I THINK IT'S A TREMENDOUS OPPORTUNITY IF WE'RE ABLE TO MAKE THE ARGUMENT OF ACTION VS INACTION SAID JAMES CARVILLE A CHIEF OPERATIVE IN MR CLINTON'S ELECTION AND HAVING FIRST DESCRIBED THE MEASURE AS A STIMULUS BILL AND THEN INVESTMENT PACKAGE THE PARTY MACHINERY HAS TURNED FULL BORE TO THE THEME OF JOBS IT'S TIME TO MOVE BEYOND THE OLD POLITICS OR PARTISANSHIP POSTURING AND PROCEDURAL DELAYS SAID MR CLINTON IN A RADIO APPEAL FOR THE JOBS PACKAGE WHILE EXPRESSING CONFIDENCE THAT A COMPROMISE WILL BE REACHED THIS WEEK TREASURY SECRETARY LLOYD BENTSEN CHASTISED HIS FORMER REPUBLICAN COLLEAGUES FOR THEIR TACTICS I CANNOT RECALL IN THE YEARS THAT I WAS IN THE SENATE WHERE WE'VE EVER HAD A NEW INCOMING PRESIDENT HAVE HIS FIRST LEGISLATION BEING FILIBUSTERED LIKE THIS MR BENTSEN SAID YESTERDAY ON CBS NEWS'S FACE THE NATION I REALLY THINK THE AMERICAN PEOPLE ARE TIRED OF SUCH GRIDLOCK SENATE DEMOCRATS FAILED FRIDAY AND SATURDAY TO BREAK THE FILIBUSTER AND A THIRD VOTE TO LIMIT DEBATE IS SCHEDULED THIS MORNING THOUGH REPUBLICANS RETAIN THE ADVANTAGE BOTH PARTIES HAVE A STAKE IN STEPPING BACK FROM THE BRINK BEFORE DAMAGE IS DONE THERE'S ENOUGH BLAME TO GO AROUND FOR EVERYONE SAID KANSAS REPUBLICAN SEN NANCY KASSEBAUM APPEALING FOR AN END TO THE RECRIMINATIONS AND THE CONFRONTATION ILLUSTRATES HOW ALL FACTIONS IN CONGRESS REMAIN INSECURE AFTER NOVEMBER'S ELECTION AND ARE DRIVEN TO TACTICAL DECISIONS THAT CAN BE AT ODDS WITH THEIR LONGTERM STRATEGIC INTERESTS IT'S LIKE THE GUNS OF AUGUST' SAID SEN MARK HATFIELD AN OREGON REPUBLICAN LIKENING THE CURRENT MANEUVERING TO THE HISTORY OF EVENTS LEADING UP TO WORLD WAR I WE'RE IN THE TRENCHES AND AREN'T SURE HOW WE GOT HERE THOUGH DEMOCRATS CONTROL CONGRESS THEY ARE HIGHLY VULNERABLE TO DEFECTIONS AND THE WHITE HOUSE'S FIRST PRIORITY HAS BEEN TO BUILD A CADRE OF PARTY SUPPORT OVERTURES CONTINUE TO BE MADE TO GOP MODERATES BUT THE ADMINISTRATION'S PUGNACIOUS TACTICS HAVEN'T SAT WELL WITH THESE PROUD BURGHERS WHO ENJOY GREAT CACHET IN WASHINGTON CIRCLES AND SEE THEMSELVES AS THE REAL CENTER OF GOVERNMENT WE REALLY DON'T WANT TO BE POTTED PLANTS SAID MISSOURI REPUBLICAN SEN JOHN DANFORTH WHO WILL RETIRE NEXT YEAR I DON'T WANT TO BE SPENDING MY LAST 18 MONTHS IN THE SENATE AS A GUERRILLA WARRIOR ON ISSUES SUCH AS FAMILY MEDICAL LEAVE AND VOTER REGISTRATION LEGISLATION GOP MODERATES HAVE GIVEN SUPPORT TO THE PRESIDENT BUT THERE IS INCREASING ANXIETY ABOUT THE COMING DEBATE OVER HEALTHCARE REFORM AND THE COST OF THE STIMULUS BILL OFFENDS A BEDROCK FISCAL AUSTERITY THAT HAS LONG CHARACTERIZED THIS WING OF THE PARTY MR DOLE RETAINS SUPPORT FROM THE SAME MODERATES IF ONLY TO FEND OFF HIS YOUNGER MORE AGGRESSIVE RIVAL SEN PHIL GRAMM OF TEXAS HE HAS SUGGESTED ACCEPTING ABOUT 9 BILLION FROM THE PRESIDENT'S BILL AND RELATED HIGHWAY AND TRANSIT FUNDS BUT CUTS ELSEWHERE WOULD BE REQUIRED TO PAY FOR ANY NEW SPENDING BEYOND THE 4 BILLION IN THE BILL TO FINANCE PROMISED JOBLESS BENEFITS TO THE LONGTERM UNEMPLOYED WITHIN THIS FISCAL YEAR ENDING SEPT 30 THAT MIGHT BE FEASIBLE BUT THE SAME REQUIREMENT WOULD CREATE HAVOC WITH THE PRESIDENT'S BUDGET FOR FISCAL 1994 AND RISK CROWDING OUT HIS NEW DOMESTIC INITIATIVES IN SEPARATE INTERVIEWS OVER THE WEEKEND BOTH MR BENTSEN AND MR PANETTA SAID THE WHITE HOUSE CAN'T ACCEPT SUCH A SEVERE CUT FROM ITS PACKAGE WHICH WOULD PROVIDE NOT ONLY 163 BILLION IN NEW APPROPRIATIONS BUT ALSO 32 BILLION TO BE RELEASED FROM TRUST FUNDS FOR HIGHWAY AND PUBLIC WORKS PROJECTS ANY AGREEMENT WOULD BE SUBJECT AS WELL TO THE APPROVAL OF THE HOUSE WHICH HAS BACKED THE FULL PACKAGE AND THE ADMINISTRATION CAN'T AFFORD TO CONCEDE TOO MUCH IN THE SENATE AFTER ASKING HOUSE DEMOCRATS TO HOLD FIRM ON THE PRESIDENT'S BEHALF WE'RE NOT NECESSARILY GOING TO TAKE WHAT THEY PASS SAID HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI THE LIBERAL ANXIETIES THERE WERE EVIDENT LAST FRIDAY WHEN A BIZARRE ALLIANCE BETWEEN THE BLACK CAUCUS AND HOUSE REPUBLICANS FORCED SPEAKER THOMAS FOLEY A WASHINGTON DEMOCRAT TO WITHDRAW LEGISLATION THAT WOULD HAVE GIVEN MR CLINTON A MODIFIED LINEITEM VETO ON SPENDING BILLS REPUBLICANS COMPLAINED THAT THE PROPOSAL WAS A RUSE HATCHED IN THE CARDINAL'S NEST OF ENTRENCHED APPROPRIATIONS COMMITTEE INTERESTS FOR THE BLACK CAUCUS THE ISSUE REPRESENTED A CHANCE NOT ONLY TO PROTEST GIVING AWAY POWER TO THE PRESIDENT BUT SEND A MESSAGE TO MR CLINTON THAT MINORITY MEMBERS HAVE BEEN FRUSTRATED BY DELAYS IN TRYING TO MEET WITH HIM JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9304050013 930405 CIGARETTE BURN PRICE CUT ON MARLBORO UPSETS ROSY NOTIONS ABOUT TOBACCO PROFITS RESPONSE BY PHILIP MORRIS TO CHEAP BRANDS' GAINS SPELLS MARKET TURMOIL THE STOCKS TAKE A BATTERING BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOBACCO ROAD IS NO LONGER PAVED WITH GOLD PHILIP MORRIS COS THE POWERFUL MARKETER THAT MADE MARLBORO ONE OF THE RICHEST AND BESTKNOWN BRANDS ON EARTH HAS CONSISTENTLY UNDERESTIMATED SMOKERS' DESIRE FOR DISCOUNT BRANDS NOW THE COMPANY HAS SET OUT ON A PAINFUL AND RISKY COUNTERSTRATEGY THAT IS LIKELY TO TRIGGER A PRICE WAR AND MAY PERMANENTLY REDUCE THE PROFITABILITY OF THE WORLD'S MOST LUCRATIVE CONSUMER MARKET PHILIP MORRIS SAID FRIDAY IT PLANS TO CUT THE PRICE OF ITS PREMIER MARLBORO BRAND BY AS MUCH AS 20 AND FORGO ANY INCREASES ON OTHER MAJOR BRANDS EVEN AS IT INTENSIFIES EFFORTS IN THE DISCOUNT BUSINESS THE MOVE WILL COST THE COMPANY BILLIONS OF DOLLARS IN PROFIT FOR PHILIP MORRIS THE BELATED BID IS A CAPITULATION TO A NEW REALITY MANY SMOKERS HAVE MOVED BEYOND THE BRANDLOYAL DAYS WHEN THEY WOULD RATHER FIGHT THAN SWITCH AFTER SPENDING BILLIONS OF DOLLARS OVER DECADES TO FORGE MARLBORO IN THE MYTHIC IMAGES OF THE OLD WEST PHILIP MORRIS NOW MUST SHOOT IT OUT ON PRICE THE EFFORT WILL ROIL THE REST OF THE TOBACCO INDUSTRY GIVEN THE COMPANY'S NO 1 ROLE WITH 423 OF THE 44 BILLION DOMESTIC TOBACCO MARKET RJR NABISCO HOLDINGS CORP'S NO 2RANKED TOBACCO BUSINESS MAY HAVE TO MATCH THE PRICE CUTS FOR ITS OWN WINSTON SALEM AND CAMEL BRANDS SMALLER RIVALS SUCH AS BROWN & WILLIAMSON TOBACCO CORP A DIVISION OF BA T INDUSTRIES PLC AND LIGGETT GROUP INC COULD BE EVEN MORE HARSHLY AFFECTED THE GAME IS OVER CONTENDS GARY D BLACK OF SANFORD C BERNSTEIN & CO ONE OF THE FEW WALL STREET ANALYSTS WHO HAVE BEEN BEARISH ON PHILIP MORRIS THE NO 1 PLAYER IS SAYING THAT PRICES WERE TOO HIGH WITH PEOPLE KICKING THE HABIT HE WARNS THE RISK IS THAT EVERYBODY IS GOING TO BE THROWING GOBS OF MONEY AT A SHRINKING BASE OF SMOKERS FOR MAKERS OF CONSUMER GOODS THE ACTION IS A MILESTONE IN MARKETING THE MOST DRAMATIC EVIDENCE YET OF A FUNDAMENTAL SHIFT IN CONSUMER BUYING HABITS MORE AND MORE SHOPPERS ARE BYPASSING HOUSEHOLD NAMES FOR THE CHEAPER NONAME PRODUCTS ONE SHELF OVER THIS SHOWS THAT EVEN THE BIGGEST AND STRONGEST BRANDS IN THE WORLD ARE VULNERABLE SAYS MARKETING CONSULTANT JACK TROUT MARLBORO COUNTRY CAN ONLY COME AT A CERTAIN PRICE PHILIP MORRIS SAYS ITS COUNTERATTACK WILL RESULT IN A 40 DECLINE IN PRETAX PROFIT IN ITS US TOBACCO BUSINESS THIS YEAR A DROP OF ABOUT 2 BILLION THAT APPARENTLY MARKS THE FIRST DECREASE IN US TOBACCO PROFITS IN THE COMPANY'S HISTORY THE US UNIT IS THE COMPANY'S SINGLE LARGEST PROFIT CONTRIBUTOR PROVIDING A HUGE 52 BILLION IN PRETAX EARNINGS LAST YEAR AND ALMOST HALF OF TOTAL EARNINGS SO FAR AT LEAST PHILIP MORRIS'S MOVE AFFECTS ONLY ITS US BUSINESS THE COMPANY'S NEWLY ISSUED 1992 ANNUAL REPORT SAYS THAT OUR WORLDWIDE TOBACCO BUSINESS HAS GREATER OPPORTUNITIES NOW THAN EVER BEFORE AND PHILIP MORRIS SAID FRIDAY THAT INVESTORS ARE OVERLOOKING THE GROWTH AND IMPROVED PROFITABILITY OF OUR OTHER BUSINESSES NONETHELESS WALL STREET RETALIATED AGAINST PHILIP MORRIS'S ANNOUNCEMENT FRIDAY TRADERS DUMPED MORE THAN 34 MILLION SHARES KNOCKING NEARLY 13 BILLION IN A SINGLE DAY OFF THE COMPANY'S ALREADY DEPRESSED STOCKMARKET VALUE THAT MARKED A 23 ONEDAY PLUNGE AND CONTRIBUTED TO A 6863POINT DROP IN THE DOW JONES INDUSTRIAL AVERAGE FRIDAY IT LEFT INSTITUTIONAL INVESTORS IN THE WIDELY HELD EQUITY GRAPPLING WITH WHETHER TO GET OUT OR HANG TOUGH IT ALSO PROMPTED THE QUICK FILING OF AT LEAST THREE SHAREHOLDER LAWSUITS ACCUSING THE COMPANY OF MISLEADING INVESTORS WALL STREET ALSO DRUBBED OTHER TOBACCO STOCKS FRIDAY SENDING SHARE PRICES DOWN IN DOUBLEDIGIT PERCENTAGES FOR RJR LIGGETT OWNER BROOKE GROUP LTD AMERICAN BRANDS INC AND LOEWS CORP WHICH OWNS LORILLARD INC AT PHILIP MORRIS WHICH SUPPLIES THE WORLD WITH DOZENS OF OTHER HOUSEHOLD BRANDS INCLUDING VELVEETA CHEESE OSCAR MAYER BACON POST RAISIN BRAN AND MILLER LITE THE NEW EFFORT PUTS CONSIDERABLE PRESSURE ON CHIEF EXECUTIVE OFFICER MICHAEL A MILES AND ON WILLIAM I CAMPBELL HEAD OF THE TOBACCO UNIT MR MILES A MUCHPRAISED FOOD MARKETER EMERGED FROM THE COMPANY'S KRAFT GENERAL FOODS SIDE IN SEPTEMBER 1991 TO BECOME THE FIRST NONTOBACCO EXECUTIVE TO BE NAMED ITS CHAIRMAN AND CEO HE HAD ALREADY BEEN PUT ON THE DEFENSIVE BY AN EARLIER 20PLUS DROP IN THE STOCK PRICE SINCE LAST FALL MR MILES DECLINED TO BE INTERVIEWED LEAVING MR CAMPBELL PRESIDENT AND CHIEF EXECUTIVE OF THE PHILIP MORRIS USA TO FACE ANALYSTS AND HANDLE THE PRESS WALL STREET DIDN'T GREET HIM ALL THAT KINDLY BILL CAMPBELL HAS DONE A SHODDY JOB OF KEEPING ABREAST OF THE MARKET CHARGED RONALD MORROW A SMITH BARNEY HARRIS UPHAM & CO ANALYST WHO HAD BEEN BULLISH ON PHILIP MORRIS UNTIL THE FRIDAY MORNING ANNOUNCEMENT IF MARLBORO DOESN'T REGAIN SHARE BILL IS GOING TO BE LOOKING FOR WORK HE PREDICTED FOR MR CAMPBELL IT WAS THE SECOND TIME THIS YEAR THAT HE HAS PUBLICLY ADMITTED THE COMPANY MISJUDGED THE MARKET IN JANUARY HE TOLD ANALYSTS HE WAS SURPRISED BY THE RAPID GROWTH IN CHEAP CIGARETTES LAST FALL BUT HE PLAYED DOWN THE SIGNIFICANCE OF A 56 DROP IN MARLBORO SHIPMENTS FOR 1992 THE STEEPEST SLIDE IN THE BRAND'S HISTORY HE SAID GROWTH WAS SLOWING IN THE DISCOUNT MARKET ON FRIDAY HE ADMITTED HE WAS WRONG AND DISCLOSED THAT IN THE FIRST QUARTER MARLBORO SHIPMENTS WERE DOWN 8 FROM A YEAR EARLIER THE NEWS HAS GONE FROM GOOD TO BAD IN A VERY SHORT TIME HE TOLD FUND MANAGERS LATER IN THE DAY HE ADDED THIS MARKET HAS MOVED VERY QUICKLY WE DON'T SEE IT TODAY THE WAY WE SAW IT IN JANUARY PHILIP MORRIS'S INVENTORY BEGAN BUILDING TO DANGEROUS LEVELS IN THE WHOLESALE PIPELINE LATE LAST YEAR AS THE COMPANY ENCOURAGED DISTRIBUTORS TO LOAD UP ON MARLBORO TO AVOID A JAN 1 PRICE INCREASE THE BACKLOG WORSENED IN JANUARY WHEN PHILIP MORRIS PUSHED DISTRIBUTORS TO TAKE ON NEW PACKS OF MARLBOROS EMBLAZONED WITH MARLBORO ADVENTURE TEAM COUPONS THEN IN MARCH IT TRIED TO SPUR VOLUME AGAIN BY ANNOUNCING A SMALL PRICE INCREASE FOR APRIL HOPING WHOLESALERS WOULD RUSH TO PUT IN NEW ORDERS BEFORE THE HIGHER PRICES KICKED IN BUT WITH WAREHOUSES ALREADY BRIMMING PHILIP MORRIS FOUND FAR FEWER TAKERS THAN USUAL IT WAS A SMACK OF REALITY SAYS STEVEN ROSENTHAL PRESIDENT OF BONANZA TRADING ASSOCIATES A NEW YORK DISTRIBUTOR HIS BRONX WAREHOUSE IS STILL PACKED WITH MORE THAN TWICE ITS USUAL INVENTORY OF MARLBOROS IT IS UNCLEAR IF OR HOW WHOLESALERS WILL BE REIMBURSED FOR THE LOWER VALUE OF THEIR INVENTORIES PHILIP MORRIS MAINTAINS IT HAS LITTLE CHOICE BUT TO LAUNCH THE NEW OFFENSIVE AND CONTENDS THE STRATEGY THOUGH PAINFUL IN THE SHORT TERM WILL ULTIMATELY LEAD TO ACCELERATED GROWTH SOME MARKETING EXPERTS AGREE IT IS THE JOB OF MARKET LEADERS TO CREATE PROFITABILITY IN THE INDUSTRY SAYS GARY STIBEL FOUNDER OF NEW ENGLAND CONSULTING GROUP A MARKETINGCONSULTING FIRM ADDS LEO J SHAPIRO A MARKETING EXPERT IN CHICAGO THIS IS A GOOD INVESTMENT FOR PHILIP MORRIS IT BEHOOVES A MAJOR PLAYER TO BRING UP ITS MARKET SHARE DISCOUNT BRANDS NOW MAKE UP 36 OF THE MARKET IN UNIT TERMS BY PHILIP MORRIS'S LATEST CALCULATIONS AND ARE EXPECTED BY SOME TOBACCO ANALYSTS TO HIT 50 BY DECADE'S END THESE BRANDS TYPICALLY BRING IN ONLY A NICKEL A PACK IN PROFIT COMPARED WITH ABOUT 55 CENTS A PACK FOR MARLBOROS THEY CUT 1 BILLION FROM INDUSTRY PROFITS LAST YEAR ALONE ONCE PHILIP MORRIS CUTS MARLBORO'S PRICE ANALYSTS FRET IT MAY NEVER HEAD BACK UP AGAIN ON FRIDAY ANALYSTS SLASHED EARNINGS ESTIMATES FOR THE COMPANY BY 20 TO 30 FOR 1994 WHEN THE NEW PLAN IS SUPPOSED TO BE PRODUCING RESULTS BUT MR CAMPBELL CONTENDS WHEN WE MAKE MARLBORO MORE AFFORDABLE IT WILL GROW THE MARLBORO MARKETERS BEGAN TRYING OUT THE PRICECUT STRATEGY IN A MONTHLONG TEST LAST DECEMBER IN PORTLAND ORE THEY SHAVED 40 CENTS FROM THE PRICE TO BELOW 2 A PACK AND SAW MARLBORO'S MARKET SHARE QUICKLY RISE FOUR PERCENTAGE POINTS THAT WAS ENCOURAGING GIVEN THE TWOPOINT DECLINE IN MARLBORO'S DOMESTIC SHARE TO 222 LAST YEAR IN FEBRUARY MARKETERS WERE FURTHER CONVINCED A CUT WAS NEEDED WHEN THEY ATTENDED A GATHERING OF PHILIP MORRIS BRASS IN SCOTTSDALE ARIZ THERE AT MYRIAD CIRCLE K CONVENIENCE STORES FLUTTERING BANNERS BECKONED TO PATRONS STOCKING UP ON BEER AND TWINKIES TO MOVE TO AUSTIN THE STORES' OWN PRIVATELABEL SMOKES AT JUST 89 CENTS A PACK YOU COULDN'T GET OUT OF THE HOTEL DRIVEWAY WITHOUT RUNNING INTO AUSTINS MR CAMPBELL SAYS AUSTINS HAVE BECOME ONE OF THE BESTSELLING BRANDS AT CIRCLE K IN JUST A FEW MONTHS ADDING TO PHILIP MORRIS'S CHAGRIN WAS THE IDENTITY OF AUSTIN'S MAKER FORSYTH TOBACCO CO OWNED BY RJR PHILIP MORRIS'S BIGGEST RIVAL RJR IS ONE BIG REASON THE MARLBORO MAN HAS BEEN FORCED INTO THIS SHOOTOUT WHILE PHILIP MORRIS IS THE UNDISPUTED LEADER IN FULLPRICE CIGARETTES AND DWARFS RJR'S 29 MARKET SHARE RJR HAS MOVED OUT AHEAD IN DISCOUNT BRANDS THE FOES HAVE LONG TAKEN SHARPLY DIFFERENT APPROACHES RJR'S RJ REYNOLDS BASED IN THE HEART OF TOBACCO COUNTRY IN WINSTONSALEM NC RELIES ON ITS SALES FORCE TO PUSH VOLUME THROUGH RETAILERS AND WHOLESALERS PHILIP MORRIS WITH HEADQUARTERS ON PARK AVENUE IN NEW YORK IS KNOWN FOR MARKETING PROWESS AND AN ABILITY TO CULTIVATE A DESIRABLE IMAGE FOR ITS BRANDS THIS RAISES THE RISK THAT FOR SOME SMOKERS THE CUT IN PRICE COULD SULLY THE BRAND'S MYSTIQUE THE COMPANY HAD ALWAYS HELD MARLBORO ABOVE THE FRAY EVEN AS RJR USED HEAVY DISCOUNTS FOR ITS CAMEL BRAND TO PICK UP NEW SMOKERS LAST YEAR WHEN THE LOWPRICED CIGARETTES FIRST EMERGED A LITTLE MORE THAN A DECADE AGO BOTH COMPANIES ALL BUT IGNORED THEM AT THE TIME LIGGETT & MYERS RESORTED TO PRIVATELABEL BRANDS IN A NEARLY DESPERATE EFFORT TO STAY IN BUSINESS AS SALES OF ITS LARK AND L&M LINES FALTERED IT WAS ABLE TO CHARGE ABOUT A DOLLAR A PACK BY THROWING OUT THE HUGE COSTS OF ADVERTISING AND PROMOTION THE LARGER RIVALS SCOFFED THEY HAD SPENT BILLIONS LINKING CIGARETTE BRANDS TO SEXY IMAGERY AND ILLUSIONS OF THE HIGH LIFE BUT PHILIP MORRIS AND RJR MANAGED TO DRIVE AWAY AN INCREASING NUMBER OF CUSTOMERS BY ROUTINELY RAISING PRICES SEMIANNUALLY BY A COMBINED 10 OR MORE CIGARETTE MAKERS BLAME TAXES FOR THE STEEP INCREASES BUT DATA PROVIDED BY THE INDUSTRY'S OWN LOBBY THE TOBACCO INSTITUTE SHOW THEY AREN'T THE WHOLE PICTURE FROM 1980 TO 1991 TAXES DOUBLED TO 45 CENTS A PACK WHILE PRICES NEARLY TRIPLED TO AN AVERAGE OF 174 A PACK THEY ROSE TO THE 2 MARK LAST YEAR DISCOUNT BRANDS STARTING AT ZERO IN 1981 PASSED 7 OF ALL CIGARETTES SOLD IN 1985 DOUBLED THEIR SHARE IN THE NEXT FOUR YEARS AND HAVE SINCE MORE THAN DOUBLED AGAIN MUCH OF THE LATER GROWTH HOWEVER REFLECTS AN ENTRY INTO THE DISCOUNT MARKET BY PHILIP MORRIS AND RJR THEMSELVES EVEN THOUGH THAT HAS MEANT SACRIFICING HIGH PROFIT MARGINS AND HURTING THEIR OWN FULLPRICE BRANDS THEY ARE IN A MUTUAL DANCE OF DEATH THAT IS STRANGLING THEIR FULLPRICE BUSINESS TONY REGENSBURG A TOBACCO INDUSTRY CONSULTANT SAYS OF PHILIP MORRIS AND RJR MR CAMPBELL ACKNOWLEDGES THAT PHILIP MORRIS HAS BEEN A RELUCTANT COMPETITOR IN DISCOUNT CIGARETTES BECAUSE OF THE EFFECT ON PREMIUM BRANDS FOR US IT'S ALWAYS BEEN A KIND OF DAMNED IF YOU DO DAMNED IF YOU DON'T SITUATION HE SAYS AT THE LOW END RJR HAS BEEN THE MORE AGGRESSIVE RIVAL SEIZING CONTROL OF ONETHIRD OF THE DISCOUNT BUSINESS LAST YEAR PHILIP MORRIS HAD A 27 SHARE OF IT RJR STEPPED UP ITS PRESENCE IN THE PENNIESAPACK MARKET IN 1987 WHEN IT CREATED FORSYTH TOBACCO TO MAKE A HOUSE BRAND OF CIGARETTES FOR KMART CORP FORSYTH OPERATES OUT OF THE SAME BUILDING IN DOWNTOWN WINSTONSALEM THAT HOUSES RJR'S REGULAR STAFF AND USES THE SAME FACTORIES RJR'S CENTERPIECE IN DISCOUNTS IS THE BARGAINBASEMENT MONARCH BRAND BUT IT HAS ALSO GAINED SHARE THOUGH LITTLE PROFIT BY ACCELERATING THE MOVE INTO A PORTFOLIO OF CUSTOMIZED UNDERABUCK BRANDS THAT IT MAKES FOR EVEN THE SMALLEST STORE CHAINS AS PART OF ITS PURSUIT OF THE DISCOUNT BUSINESS RJR LAST YEAR BEGAN BYPASSING TRADITIONAL TOBACCO DISTRIBUTORS AND GOING STRAIGHT TO CONVENIENCESTORE CHAINS AND GAS STATIONS OFFERING TO CREATE HOUSE BRANDS FOR ANY WILLING CUSTOMER WHILE FILLING UP AT ONE OF THE 800 GAS STATIONS OWNED BY BP OIL CO FOR EXAMPLE SMOKERS CAN PICK UP A PACK OF HIGHWAY CIGARETTES FOR AS LITTLE AS 69 CENTS A PACK MADE EXPRESSLY FOR THE BRITISH PETROLEUM CO SUBSIDIARY BY RJR'S FORSYTH A FEW MONTHS AGO THE 165OUTLET SHEETZ CONVENIENCE STORES CHAIN BEGAN SELLING ITS OWN LINE OF CIGARETTES JACKS IN A SIMPLE WHITE PACK EMBLAZONED WITH THE FACE OF A PLAYING CARD MADE BY RJR AND SELLING AT 99 CENTS A PACK JACKS WERE AN IMMEDIATE HIT AND NOW ACCOUNT FOR HALF THE ALTOONA PA CHAIN'S CIGARETTE BUSINESS JACKS EVEN OUTSELLS RJR'S OWN CAMEL AND WINSTON LINES AT SHEETZ STORES ONE SMALL CONSOLATION FOR RJR JACKS ALSO OUTSELLS MARLBORO THERE PHILIP MORRIS RELUCTANTLY DECIDED TO GRAB A PIECE OF THIS ACTION LAST YEAR EVEN THOUGH RJR ISN'T EXACTLY GETTING RICH ON IT LAST YEAR RJR'S SALES ROSE 5 TO 616 BILLION BUT ITS OPERATING PROFIT DROPPED 5 TO 211 BILLION UNTIL LAST YEAR PHILIP MORRIS HAD BEEN CAUTIOUS SELLING THE 150APACK CAMBRIDGE BRAND BUT MOSTLY AVOIDING THE 99CENT WARS YET RETAILERS SAY THAT OVER LAST SUMMER PHILIP MORRIS MADE AN ALLOUT ASSAULT ON THE DISCOUNT CATEGORY PURSUING CUSTOMERS LIKE QUIKTRIP CORP BASED IN TULSA OKLA THE BESTSELLING CIGARETTE AT QUIKTRIP'S CONVENIENCE STORES ISN'T HEAVILY PROMOTED MARLBOROS BUT THE CHAIN'S OWN CUTRATE BRONSON LINE IT FARES SO WELL THAT PHILIP MORRIS OFFERED SPECIAL DISCOUNTS ON A VARIETY OF BRANDS AND OTHER INCENTIVES TO PERSUADE QUIKTRIP TO LET IT MANUFACTURE THE BRAND QUIKTRIP DUMPED BRONSON'S MAKER OF NINE YEARS LIGGETT GROUP PHILIP MORRIS CAME TO US WITH A PACKAGE THAT WAS PRETTY COMPELLING SAYS WYATT PHILLIPS QUIKTRIP'S VICE PRESIDENT MARKETING NOW PHILIP MORRIS SAYS IT WILL INTENSIFY ITS EFFORTS TO OBTAIN MARKET SHARE IN ALL INDUSTRY SEGMENTS AND WILL TAKE PROMPT ACTION TO EXPAND THE DISTRIBUTION OF ITS DISCOUNT BRANDS IT PLEDGES TO ACHIEVE A LEADING SHARE IN DISCOUNTS THE COMPANY MAY GET SOME HELP FROM SMOKERS LAST WEEK THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA SAID THE RATE OF SMOKING IN THE US INCREASED SLIGHTLY IN 1991 THE FIRST RISE AFTER DECLINING FOR 25 YEARS THE CDC SAID IT WAS PARTLY A RESULT OF DISCOUNT CIGARETTES MAKING SMOKING AFFORDABLE AFTER GAINING A COMBINED 60 OF THE DISCOUNT BUSINESS PHILIP MORRIS AND RJR HAVE SET ABOUT TRYING TO RAISE PRICES THEY APPARENTLY HAD HOPED BOTH TO INCREASE THE PROFITS ON THE GENERICS TO PERHAPS 15 CENTS A PACK FROM A NICKEL AND TO PUSH MORE SMOKERS BACK TO FULLPRICE BRANDS SINCE AUGUST IN AN APPARENT COINCIDENCE BOTH TOBACCO GIANTS HAVE RAISED THE WHOLESALE PRICE OF THEIR CHEAPEST SMOKES FOUR TIMES FOR A TOTAL OF 40 ANALYSTS SAY IT HASN'T WORKED THE CHAIN STORES ARE FUMING IT IRRITATES ME TO NO END SAYS LOUIE SHEETZ MARKETING VICE PRESIDENT OF THE CONVENIENCESTORE CHAIN HE VOWS TO SWITCH TO A SMALLER HUNGRIER SUPPLIER IF RJR TRIES TO FORCE THROUGH ANOTHER INCREASE ON HIS STORE BRAND WE ARE GOING TO HAVE JACKS AT A LOW PRICE FOREVER HE DECLARES PHILIP MORRIS'S MR CAMPBELL CONCEDES THAT PRICE INCREASES ON THE PRIVATE LABELS HAVEN'T STUCK FOR WHICH HE BLAMES A NEW ROUND OF REDUCTIONS BY RJR BUT HE ALL BUT DISAVOWS THE COMPANY'S STATEMENT THAT IT WILL PUSH HARDER IN DISCOUNTS FOCUSING INSTEAD ON HIS PLANS FOR MARLBORO THE NEW STRATEGY AGAIN AIMS FOR NARROWING THE PRICE GAP BETWEEN DISCOUNT BRANDS AND MARLBORO BUT THIS TIME BY CUTTING PRICES ON THE HIGH END THE COMPANY INSISTS THE MARLBORO MOVE ISN'T AN OUTRIGHT PRICE CUT PHILIP MORRIS WILL USE COUPONS AND PRICE CUTS IN SOME MARKETS TO WHACK MARLBORO'S PRICE TAG BY 40 CENTS A PACK IT WILL ALSO LURE SMOKERS WITH SPECIAL PROMOTIONS BUY THREE PACKS GET TWO FREE FOR ITS OTHER MAJOR BRANDS SUCH AS VIRGINIA SLIMS BENSON & HEDGES AND MERIT IT SAYS IT WILL FORGO ANY FURTHER PRICE INCREASES FOR THE FORESEEABLE FUTURE THE RESULT OF ALL THIS THE COMPANY CONTENDS ULTIMATELY WILL BE AN UPTURN IN MARLBORO SALES MARKET SHARE AND PROFIT BUT RJR HAS ALREADY VOWED TO COMPETE AGGRESSIVELY AND IT AND LESSER RIVALS COULD KEEP PRICES SO LOW IN THEIR DISCOUNT LABELS THAT MARLBOROS COULD REMAIN UNATTRACTIVE TO MANY SMOKERS OTHER THREATS PERSIST FOR ONE THING THERE IS THE CONTINUING POSSIBILITY THAT TOBACCO COMPANIES COULD SOMEDAY BE HELD LIABLE FOR SMOKINGRELATED ILLNESSES A MORE PRESSING CONCERN TO THE INDUSTRY IS THE CLINTON ADMINISTRATION'S PLAN TO RAISE THE EXCISE TAX ON CIGARETTES FROM THE CURRENT 24 CENTS A PACK COULD WIPE OUT THE 40CENT BREAK THAT PHILIP MORRIS WANTS TO DELIVER ON MARLBORO EVEN THOUGH THE TAX WOULD GO ON PRIVATE LABELS TOO IT COULD PUSH MARLBORO'S PRICE BACK OVER 2 SENDING MORE SMOKERS IN SEARCH OF CHEAP RELIEF INDEED TOBACCO EXPERTS SAY THE MOST LIKELY CONSEQUENCE OF THE NEW PUSH IS SIMPLY LOWER PROFITS AND PERHAPS PERMANENTLY LOWER PRICES ON PHILIP MORRIS'S FRANCHISE BRAND IT IS RISKY SAYS MR ROSENTHAL OF BONANZA TRADING IT MAY CREATE PERMANENT AND INSIDIOUS DOWNWARD PRICING PRESSURING ON THEIR MOST PROFITABLE BRANDS IT ISN'T CLEAR JUST HOW LOW MARLBOROS AND OTHER MAINSTAY BRANDS WILL HAVE TO GO TO LURE SMOKERS BACK TO THE FULLPRICE FOLD THE ANSWER MAY BE ALARMING GIVEN AVID SMOKERS LIKE DOUGLAS CRANDALL A RAILROAD MACHINE OPERATOR AND LIFELONG SMOKER IN BARSTOW ILL HE STARTED OUT PUFFING MARLBOROS YEARS AGO IN THE ARMY BACK WHEN HE COULD BUY THEM FOR JUST 28 CENTS A PACK AT THE PX HE GOT OUT OF THE SERVICE AND LATER SWITCHED TO CAMELS BUT NOWADAYS HE IS CONTENT TO SMOKE THREE PACKS A DAY OF GPC APPROVED A BUCKAPACK BRAND MADE BY BROWN & WILLIAMSON FORGET ABOUT BRAND LOYALTY AND IMAGE A CIGARETTE IS A CIGARETTE MR CRANDALL SAYS 9304050012 930405 WELL HOW TO SUCCEED IN BUSINESS WITHOUT REALLY TRYING' IT'S NOT BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE FOOD SALES DEPARTMENT IS IN THE SPOTLIGHT NOW IS THE CHANCE SING THE JOYFUL EMPLOYEES BOSS PLEASE GET PROMOTED THOSE LINES MAY SOUND BETTER IN JAPANESE THEY'RE FROM A GOLD MEDAL FOR A SALARYMAN A HIT MUSICAL TOURING JAPAN THAT REVERENTLY CELEBRATES THE SALARYMAN AS THIS NATION'S BLUESUITED CORPORATE FOOT SOLDIER IS CALLED IN JAPANESE AFTER HIS DEPENDABLE WORKING WAGE IT'S HARDLY THE FIRST TIME THE SALARYMAN HAS BEEN CHAMPIONED IN JAPAN THERE ARE SALARYMAN NOVELS FEATURE FILMS TELEVISION DRAMAS COMIC BOOKS FASHIONS THERE'S EVEN A SALARYMAN GOURMET COOKING MAGAZINE BUT THERE'S SOMETHING SPECIAL ABOUT A GOLD MEDAL CONSIDER ITS UPLIFTING MUSIC SONGS LIKE WE WANT TO BECOME FANS OF THE COMPANY THE PRESIDENT IS THE CAPTAIN THIS SHOW DELIVERS LIVELY LAUGHTER AND PATHOS ABOUT SALARYMEN PROMISES A FLIER PUT OUT BY HOMETOWN CARAVAN THE PRODUCER OF THE MUSICAL HOMETOWN IS A COMPANY THAT KNOWS ITS POPULAR DRAMA FIFTY THOUSAND PEOPLE CAME TO ITS PREVIOUS SALARYMAN MUSICAL SAGA TITLED YOUAH MY SUN SHAIN A SHAIN IS ALSO A SALARYMAN THAT SHOW'S HIT SONG A SALARYMAN'S HAPPINESS IS UP TO THE BOSS INCLUDED THIS INSTRUCTIVE LYRIC IF YOUR JOB HAS YOU DOWN IT MESSES UP YOUR LOOKS THE PLOT OF A GOLD MEDAL BRIEFLY HARDDRIVEN MR ODAKURA IS ON THE VERGE OF MAKING THE BOARD OF HIS COMPANY HE JUST HAS TO WHIP UP HIS FOODSALES TROOPS FOR ONE LAST BIG PUSH THE GROUP EXCELS BUT NO PROMOTION FOR MR ODAKURA COLLECTIVE ANGUISH FOR THE TEAM FOLLOWED BY MUSICAL SOULSEARCHING MR ODAKURA AND THE CORE OF HIS STAFF RESOLVE TO WORK EVEN HARDER AND SELL MORE FOOD PRODUCTS IN THE PAST FEW MONTHS 72600 PEOPLE MOSTLY REAL SALARYMEN HAVE PAID AS MUCH AS 5000 YEN 4375 EACH TO SEE A GOLD MEDAL AT THEATERS ACROSS JAPAN IT'S STILL PLAYING TO PACKED HOUSES AND A RECENT PERFORMANCE ENDED WITHOUT A DRY EYE IN THE HOUSE INDEED SEVERAL JAPANESE CORPORATIONS HAVE BROUGHT NEW EMPLOYEES TO THE PERFORMANCES TO SHOW THEM WHAT LIFE INSIDE THE COMPANIES WILL BE LIKE 9304050011 930405 COMPUTERVISION FIRES SHIELDS AS CHIEF OFFICER ACTION IS TAKEN AS PACE OF TURNAROUND FAILS TO MEET EXPECTATIONS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL DIRECTORS OF COMPUTERVISION CORP DISSATISFIED WITH THE PACE AND SUSTAINABILITY OF THE COMPANY'S TURNAROUND FIRED CHIEF EXECUTIVE OFFICER JOHN J SHIELDS THE BIG SOFTWARE AND COMPUTERSERVICES COMPANY 22OWNED BY AMERICAN EXPRESS CO'S LEHMAN BROTHERS INC NAMED RUSSELL E PLANITZER COMPUTERVISION'S CHAIRMAN TO THE ADDED POST OF CHIEF EXECUTIVE IT SAID ITS ACTION WAS BASED ON A WIDE RANGE OF FACTORS INCLUDING FINANCIAL RESULTS THAT ARE BELOW THE BOARD'S EXPECTATIONS LEHMAN WHICH HAS A SEAT ON THE BOARD WAS OFTEN AT ODDS WITH MR SHIELDS AND SUPPORTED HIS REMOVAL IN A BOARD MEETING LATE FRIDAY INSIDERS SAID MR PLANITZER SAID THE MOVE HAD BEEN UNDER CONSIDERATION FOR SOME TIME BUT SAID IT WASN'T INITIATED BY LEHMAN COMPUTERVISION BASED IN BEDFORD MASS HAD SALES OF 107 BILLION LAST YEAR IT HAS UNDERGONE A SWEEPING TRANSFORMATION DURING MR SHIELDS'S TWOANDAHALF YEAR TENURE SHEDDING THOUSANDS OF JOBS CLOSING ITS COMPUTERMANUFACTURING UNIT AND SHIFTING ITS FOCUS TO SOFTWARE THE STRATEGY APPEARED TO BE TAKING HOLD EARLIER THIS YEAR AS THE COMPANY SURPRISED INVESTORS WITH A PROFIT OF 48 MILLION OR 10 CENTS A SHARE FOR THE FOURTH QUARTER IT EVEN DECLARED ITS FIRST DIVIDEND ONE CENT A SHARE THAT COMPARED WITH A YEARAGO LOSS OF 341 MILLION OR 117 A SHARE ON FEWER SHARES YEARAGO RESULTS INCLUDED A LOSS FROM THE DISCONTINUED UNIT OF 176 MILLION BUT COMPUTERVISION'S PROGRESS TOWARD PROFITABILITY HAS BEEN UNEVEN AND THE COMPANY IS EXPECTED TO POST A LOSS FOR THE LATEST QUARTER WHICH ENDED LAST WEEK WHILE EXECUTIVES YESTERDAY WOULDN'T COMMENT ON THE MOST RECENT QUARTER'S RESULTS THEY DIDN'T DISPUTE ANALYSTS' ESTIMATES OF A LOSS OF ABOUT 8 MILLION TO 10 MILLION MR SHIELDS A FIERCELY INDEPENDENT MANAGER WHO PREVIOUSLY WAS THE SECONDRANKING EXECUTIVE AT DIGITAL EQUIPMENT CORP WOULDN'T TALK ABOUT HIS REMOVAL I'M PROUD OF WHAT WE'VE ACCOMPLISHED AND I'M CONFIDENT OF THE COMPANY'S LONGTERM PROSPECTS HE SAID ONE DIRECTOR APPLAUDED MR SHIELDS'S TECHNICAL AND STRATEGIC SKILLS BUT SAID THAT HE WASN'T DEALING EFFECTIVELY WITH THE MANY OTHER CONSTITUENCIES OF A LARGE PUBLIC COMPANY INCLUDING CREDITORS ANALYSTS AND SHAREHOLDERS ANOTHER INSIDER SAID MR SHIELDS 54 YEARS OLD HAD NO PATIENCE FOR LAWYERS AND INVESTMENT BANKERS AND THAT'S WHAT TOOK HIM OUT MR PLANITZER 49 SAID MR SHIELDS'S STRATEGY IS THE CORRECT ONE BUT WE NEED TO GET THERE FASTER HE SAID THE COMPANY NEEDS TO DO FEWER THINGS AND DO THEM MORE QUICKLY IF WE TRY TO IMPLEMENT DIFFERENT STRATEGIES SIMULTANEOUSLY IT BALKANIZES OUR EFFORTS COMPUTERVISION IS THE LARGEST INDEPENDENT DEVELOPER OF SOFTWARE USED IN DESIGN AND MANUFACTURING FORMERLY KNOWN AS PRIME COMPUTER INC THE COMPANY WAS TAKEN PRIVATE IN A LEVERAGED BUYOUT IN 1989 BY JH WHITNEY & CO LEAVING IT BURDENED WITH 129 BILLION OF DEBT LEHMAN BECAME INVOLVED BECAUSE IT HELPED FINANCE THE BUYOUT WITH A 500 MILLION BRIDGE LOAN WHICH WAS TO HAVE BEEN CONVERTED TO JUNK BONDS BUT THE MARKET FOR JUNK DEBT SOURED BEFORE THE BONDS COULD BE SOLD LEAVING LEHMAN WITH THE DEBT LAST YEAR IN A COMPLICATED TRANSACTION THAT TOOK COMPUTERVISION PUBLIC AND LARGELY REMOVED WHITNEY LEHMAN RECEIVED ITS 22 STAKE AND 250 MILLION IN CASH CHARLES FOUNDYLLER OF MARKET RESEARCHER DARATECH INC CAMBRIDGE MASS SAID THAT MR SHIELDS PUT IN PLACE THE RIGHT STRATEGY AND MADE ITS SOFTWARE A SERIOUS CONTENDER BUT HE SAID MR SHIELDS DIDN'T MAKE DECISIONS QUICKLY ENOUGH AND FOUND IT HARD TO DELEGATE AUTHORITY HE FELT THE COMPANY'S WOES COULD BE SOLVED BY THE RIGHT TECHNOLOGY BUT THE PROBLEMS WERE DEEPER THAN THAT 9304050010 930405 QUARTERLY MUTUAL FUNDS REVIEW MONEY FUNDS HAD GRIM FIRST QUARTER BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL IT WAS A GRIM FIRST QUARTER FOR INVESTORS IN MONEY MARKET MUTUAL FUNDS AND THE NEXT FEW MONTHS DON'T LOOK ANY BRIGHTER YIELDS ON TAXABLE FUNDS DROPPED TO THEIR LOWEST LEVEL EVER IN LATE MARCH WHILE MANY FUND MANAGERS SAY YIELDS MAY HAVE FINALLY REACHED BOTTOM NO ONE IS PREDICTING DRAMATIC INCREASES SOON YIELDS ARE SIMPLY GOING TO BOUNCE AROUND AT THESE LEVELS SAYS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT IN THE FIRST QUARTER THE ASHLAND MASS NEWSLETTER SAYS THE AVERAGE YIELD ON TAXABLE FUNDS OPEN TO INDIVIDUAL INVESTORS WAS 266 ON AN ANNUALIZED BASIS THAT WAS DOWN FROM 272 IN LAST YEAR'S FOURTH QUARTER THE AVERAGES INCLUDE SOME ALMOST UNBELIEVABLE NUMBERS AMONG TAXABLE FUNDS DECLARATION CASH ACCOUNT POSTED A 120 YIELD FOR THIS YEAR'S FIRST QUARTER ONE OF THREE FUNDS YIELDING LESS THAN 2 THE HIGHEST YIELDING FUNDS WERE ONLY SLIGHTLY ABOVE 35 THERE'S LITTLE INCENTIVE TO TAKE CASH OUT OF THE MATTRESS QUIPS IAN MACKINNON SENIOR VICE PRESIDENT OF MUTUAL FUND GIANT VANGUARD GROUP IN VALLEY FORGE PA THE YIELD ADVANTAGE OF TAXEXEMPT MONEY FUNDS SHRANK DRAMATICALLY DURING THE QUARTER THE LATEST AVERAGE SEVENDAY COMPOUND YIELD ON TAXFREE FUNDS WAS 202 OR THE EQUIVALENT OF A TAXABLE 293 FOR AN INVESTOR IN THE 31 TAX BRACKET FOR ALL TAXABLE FUNDS INCLUDING THOSE OPEN TO INSTITUTIONS THE LATEST AVERAGE SEVENDAY COMPOUND YIELD WAS 270 COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THREE MONTHS EARLIER TAXFREE FUND YIELDS WERE AVERAGING 274 EQUIVALENT TO 397 FOR SOMEONE IN THE 31 BRACKET FOR ALL TAXABLE FUNDS THE AVERAGE SEVENDAY COMPOUND YIELD WAS 290 TAXFREE FUNDS ACHIEVED A MILESTONE DURING THE QUARTER BUT NOT ONE THAT INVESTORS CHEERED THE YIELD ON ONE FUND FELL TO LESS THAN 1 FUNDAMENTAL TAXFREE MONEY MARKET FUND POSTED A SEVENDAY COMPOUND YIELD OF 094 FOR THE WEEK ENDED MARCH 1 EVEN ON A TAXEQUIVALENT BASIS FOR AN INVESTOR IN THE 31 TAX BRACKET THE YIELD WAS JUST 136 BY THE END OF THE QUARTER THE FUND WAS DOING A BIT BETTER ITS YIELD FOR THE LATEST WEEK WAS 136 TAXFREE EQUIVALENT TO A TAXABLE 197 OVERALL ASSETS OF TAXABLE FUNDS OPEN TO INDIVIDUALS GREW JUST 4 BILLION DURING THE FIRST THREE MONTHS OF THIS YEAR TO 31367 BILLION ACCORDING TO MONEY FUND REPORT THE LATEST TOTAL COULD INCLUDE AS MUCH AS 2 BILLION IN REINVESTED DIVIDENDS AND EVEN WITH THE LATEST QUARTERLY INFLOW THERE IS MORE THAN 20 BILLION LESS IN TAXABLE MONEY FUNDS OPEN TO INDIVIDUALS THAN THERE WAS A YEAR AGO PEOPLE WHO WERE GOING TO LEAVE HAVE LEFT SAYS EDWARD A WIESE PORTFOLIO MANAGER FOR T ROWE PRICE ASSOCIATES' PRIME RESERVE FUND THEY'RE INTERESTED IN OTHER THINGS RIGHT NOW ASSETS OF TAXEXEMPT FUNDS OPEN TO INDIVIDUALS GREW ABOUT 25 BILLION DURING THE QUARTER TO 8307 BILLION ACCORDING TO MONEY FUND REPORT FAR MORE CASH IS GOING INTO STOCK FUNDS AND BOND FUNDS THAN MONEY FUNDS AS INVESTORS TRY TO EKE OUT HIGHER RETURNS THE INVESTMENT COMPANY INSTITUTE THE MUTUAL FUND TRADE GROUP REPORTED JUST LAST WEEK THAT INVESTORS POURED 87 BILLION OF NEW MONEY INTO STOCK FUNDS AND MORE THAN 107 BILLION INTO BOND FUNDS IN FEBRUARY ALONE THE PERCENTAGE OF TOTAL MUTUAL FUND DOLLARS IN MONEY FUNDS HAS DWINDLED TO ABOUT 34 FROM NEARLY 47 IN 1990 BACK THEN YIELDS WERE AROUND 8 AND MONEY FUNDS WERE BATTLING FIERCELY FOR INVESTORS' DOLLARS STILL THERE ARE REASONS TO KEEP SOME CASH IN MONEY FUNDS MOVING FROM MONEY FUNDS INTO STOCKS IS A REAL LEAP OF FAITH SAYS JOSEPH DIMARTINO PRESIDENT OF DREYFUS CORP AND MANAGER OF SEVERAL OF ITS MONEY FUNDS IF THE EQUITY MARKET DOES CORRECT A LOT OF PEOPLE WILL BE DISAPPOINTED UNLIKE STOCK AND BOND FUNDS WHOSE NET ASSET VALUES FLUCTUATE WITH MARKET VARIATIONS MONEY FUNDS ARE STRUCTURED SO THEIR NET ASSET VALUE REMAINS AT 1 A SHARE AND ONLY THE YIELD CHANGES THEY ARE CONSIDERED AMONG THE SAFEST INVESTMENTS MONEY FUNDS FREQUENTLY ARE USED AS A SUBSTITUTE FOR CHECKING ACCOUNTS WHICH AT MANY BANKS AND THRIFTS ARE YIELDING AROUND 2 ACCORDING TO BANK RATE MONITOR A NORTH PALM BEACH FLA NEWSLETTER MUTUAL FUND FAMILIES AND BROKERAGE FIRMS ALSO USE MONEY FUNDS AS A PLACE FOR INVESTORS TO PARK THEIR CASH WHILE THEY DECIDE WHERE TO INVEST WITH SHORTTERM CD YIELDS ABOUT THE SAME AS MONEY FUNDS AND BANK MONEY MARKET ACCOUNTS YIELDING EVEN LESS THERE'S LITTLE REASON TO LEAVE MONEY IN THE BANK BANK YIELDS AREN'T EXPECTED TO RISE MUCH EITHER LOAN DEMAND IS LOW BECAUSE OF THE POOR ECONOMY SO THEY DON'T NEED TO ATTRACT ASSETS MR MACKINNON OF VANGUARD EXPECTS SOME OF THE MONEY IN BANK CERTIFICATES OF DEPOSIT COMING DUE THIS MONTH TO GO INTO MONEY FUNDS BUT MORE TO GO INTO SHORTTERM AND INTERMEDIATETERM BOND FUNDS WHICH OFFER HIGHER YIELDS I JUST HOPE PEOPLE AREN'T PUTTING NEXT MONTH'S BILL PAYMENTS INTO THESE THINGS HE SAYS NOTING THAT THE VALUE OF BOND FUNDS DROPPED 3 TO 4 IN RECENT WEEKS IN RESPONSE TO DECLINES IN BOND PRICES WHICH WOULD WIPE OUT THE INCOME BENEFIT OVER MONEY FUNDS MONEY FUNDS ARE STRUCTURED TO PASS ALONG THE INCOME FROM THEIR INVESTMENTS LESS EXPENSES MANAGERS OF TAXABLE FUNDS CLEARLY DON'T EXPECT INCREASES IN SHORTTERM INTEREST RATES AND THUS FUND YIELDS SOON THEY ENDED THE QUARTER WITH AN AVERAGE PORTFOLIO MATURITY OF 60 DAYS ALTHOUGH THAT'S SHORTER THAN THE 66DAY HIGH REACHED IN NOVEMBER IT'S UP FROM 57 DAYS AT THE END OF THE FOURTH QUARTER AND CONSIDERED FAIRLY LONG BY MONEY FUND STANDARDS SECURITIES AND EXCHANGE COMMISSION REGULATIONS LIMIT MONEY FUNDS TO A MAXIMUM AVERAGE MATURITY OF 90 DAYS MONEY FUNDS GENERALLY INVEST IN SECURITIES MATURING IN A YEAR OR LESS TAXABLE FUNDS INVEST LARGELY IN COMMERCIAL PAPER SHORTTERM CORPORATE IOUS TREASURY BILLS AND GOVERNMENT AGENCY SECURITIES ALONG WITH OTHER SHORTTERM SECURITIES SHORTTERM INTEREST RATES ARE GENERALLY EXPECTED TO REMAIN ABOUT THE SAME DURING THE CURRENT QUARTER WITH INCREASES COMING LATER THIS YEAR ANY INCREASES WILL BE SMALL FUND MANAGERS SAY MR WIESE OF T ROWE PRICE SAYS HE EXPECTS YIELDS TO BE ONEHALF TO THREEQUARTERS OF A PERCENTAGE POINT HIGHER BY THE END OF THE YEAR MR FRANK THE MONEY FUND REPORT ECONOMIST SAYS THERE'S NO REASON NOW FOR THE FEDERAL RESERVE TO DO ANYTHING TO RAISE SHORTTERM RATES THE ECONOMY'S NOT DOING MUCH HE SAYS A LOOK AT CONSUMERORIENTED MONEY FUNDS AND SOME OF THEIR HOLDINGS AT THE END OF THE FIRST QUARTER PERFORMANCE FIGURES ARE ESTIMATED ANNUALIZED YIELDS WHICH INCLUDE EARNINGS FROM THE FUND'S INVESTMENTS AND THE EFFECTS OF COMPOUNDING FUNDS OPEN ONLY TO INSTITUTIONS SPECIAL PURPOSE FUNDS AND TAXEXEMPT FUNDS ARE EXCLUDED FROM THESE TABLES 9304050009 930405 CREDIT MARKETS BOND MOOD IS BECOMING MORE WARY JOBS DATA BRING OUT BEARS BUT OTHERS SAY PRICES CAN STILL RISE BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT'S NOT TIME TO RUN FOR THE HILLS SAY MONEY MANAGERS BUT MORE BEARS ARE LURKING IN THE BOND MARKET THESE DAYS AND ANXIETIES ARE HIGHER THAN A FEW WEEKS AGO FOR THE FIRST TIME IN SIX WEEKS THE YIELD ON THE 30YEAR BOND ROSE ABOVE THE 7 BARRIER TO FINISH AT 706 ON FRIDAY AS A DISAPPOINTING EMPLOYMENT REPORT DEPRESSED THE MARKET THE PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE YIELD DROPPED MORE THAN A POINT OR MORE THAN 10 FOR A BOND WITH A 1000 FACE VALUE TO 100 25/32 LOUD TALK ABOUT A 65 YIELD OR EVEN LOWER ON THE 30YEAR TREASURY BOND HAS DIMINISHED TO A STEADY MURMUR BUT FEW MONEY MANAGERS AND ECONOMISTS ARE TALKING ABOUT YIELDS RISING SHARPLY FROM HERE EITHER THE YIELD ON THE 30YEAR BOND IS SAID TO BE LIKELY TO BE BOUND WITHIN A RANGE THAT COULD BE AS NARROW AS 010 PERCENTAGE POINT ABOVE AND BELOW FRIDAY'S YIELD THE ATTITUDES OF BOND INVESTORS ARE A WHOLE LOT DIFFERENT NOW THAN ABOUT A MONTH AGO WHEN THE RALLY WAS FIRMLY IN PLACE SAYS STEVEN WOOD DIRECTOR OF FINANCIAL MARKET RESEARCH AT BANK OF AMERICA NOW PEOPLE ARE MUCH MORE CAUTIOUS ON FRIDAY INVESTORS WERE EXPECTING A LARGE DOWNWARD REVISION TO THE 365000 GAIN IN FEBRUARY NONFARM PAYROLLS BUT WOUND UP GETTING A SLIGHT INCREASE OF 2000 INSTEAD AND A SMALL DROP IN NONFARM PAYROLLS FOR MARCH WAS PRACTICALLY IGNORED BY BOND TRADERS WHO FIXATED INSTEAD ON NEWS OF AN UNEXPECTED 05 RISE IN AVERAGE HOURLY EARNINGS BECAUSE WAGES ARE CONSIDERED AN IMPORTANT FACTOR IN THE INFLATION EQUATION THE INCREASE REKINDLED INFLATION WORRIES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN AS A RESULT INVESTORS ARE ANXIOUSLY AWAITING THE MARCH PRODUCER PRICE INDEX AND CONSUMER PRICE INDEX SLATED TO BE RELEASED THURSDAY AND FRIDAY FOR NEWS TO CONFIRM OR EASE THESE WORRIES BUT NOT EVERYONE IS PULLING IN THEIR HORNS WILLIAM GROSS MANAGING DIRECTOR OF PACIFIC INVESTMENT MANAGEMENT CO SAYS IT'S TIME TO TAKE OFF THE SELLING HAT AND PUT ON THE BUYING HAT WITH INFLATION WORLDWIDE ON THE WANE HE SAYS IT MAKES NO SENSE FOR US BOND INVESTORS TO BE SO JITTERY NOW IS THE TIME FOR COURAGE AND NOT FOR TIMIDITY PACIFIC INVESTMENT A TOPPERFORMING MANAGER OF 44 BILLION FOR PENSION FUNDS AND OTHERS HAS ABOUT A QUARTER OF ITS ASSETS IN 30YEAR TREASURY BONDS SAYS MR GROSS AND HASN'T ANY PLANS TO SELL ANY OF IT SOON IN FACT MR GROSS SAYS HE MAY BUY SOME MORE WITH THE PILES OF CASH SITTING AROUND FROM INTEREST PAYMENTS ON HIS CURRENT INVESTMENTS AND NEW INFLOWS WHILE CONCERNS ABOUT PRESIDENT CLINTON'S ECONOMIC PACKAGE HAVE RATTLED THE MARKET SAYS MR GROSS INFLATION FEARS ARE THE BIGGEST WORRY LATELY BUT INVESTORS NEEDN'T BE SO WORRIED HE SAYS MOST OTHER INDUSTRIALIZED NATIOS ARE STILL IN A SLOW GROWTH RECESSIONARY ENVIRONMENT MR GROSS POINTS OUT INFLATION DOES NOT POP ITS HEAD OUT OF A HOLE AT SUCH TIMES IT'S STILL AN IDEAL ENVIRONMENT FOR BONDS IN GENERAL OVER THE NEXT MONTH A DIP TO 675 IN YIELDS IS STILL A POSSIBILITY SAYS MR WOOD OF BANK OF AMERICA LOWER GOVERNMENT BORROWING NEEDS AND SPECULATION ABOUT A REDUCTION IN THE NUMBER OF 30YEAR BONDS TO BE SOLD DURING THE TREASURY'S QUARTERLY REFUNDING NEXT MONTH SHOULD PUSH YIELDS LOWER HE SAYS BUT BY THE SECOND HALF OF THE YEAR HE SAYS WE'RE GOING TO SEE A LITTLE FIRMER ECONOMIC NEWS AND YIELDS AS HIGH AS 725 BY THEN HE SAYS CLEARLY THE TREND WILL HAVE SHIFTED FROM DROPPING INFLATION NUMBERS TO STEADY OR SLIGHTLY INCREASING INFLATION ONE OTHER WORRY HANGING OVER THE MARKET IS THE ADMINISTRATION'S MUCHAWAITED HEALTH REFORM PLAN IT'S THE BIG UNCERTAINTY SAYS MR WOOD LOTS OF PEOPLE REALIZE THAT THE HEALTH PROPOSALS ARE VERY CRITICAL FOR LONGTERM IMPROVEMENT IN THE FEDERAL DEFICIT IF THESE ARE NOT FORTHCOMING HE SAYS THE BOND MARKET MAY TAKE IT BADLY AND MANY ECONOMISTS WHILE A BIT UNNERVED BY THE RECENT ECONOMIC NUMBERS AREN'T REVISING THEIR OUTLOOKS TO PREDICT A BOOMING ECONOMY BY YEAR END THE ECONOMY IS NOT GOING DOWN AND IT'S NOT WEAKENING SAYS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC BUT IT'S NOT BOOMING AHEAD EITHER MR FINE SAYS ANNUAL INFLATION AS MEASURED BY THE CONSUMER PRICE INDEX IS LIKELY TO INCREASE TO 35 FROM 30 LAST YEAR AS A RESULT SAYS MR FINE MOST PEOPLE AREN'T LOOKING FOR A 65 YIELD ON THE 30YEAR BOND ANYMORE BUT PEOPLE AREN'T MAKING BIG BETS EITHER WAY HE ADDED REAL PROGRESS IN THE PROPOSED BUDGET CUTS BY PRESIDENT CLINTON HOWEVER COULD BRING A BOOST TO THE MARKET HE POINTED OUT WILLIAM V SULLIVAN DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC SAYS THAT A LARGE AMOUNT OF CASH STOCKPILED BY MONEY MANAGERS OVER THE PAST FEW WEEKS COULD VERY WELL FIND ITS WAY BACK INTO THE BOND MARKET THUS PUSHING YIELDS DOWN AGAIN IT IS OUR BELIEF THAT CASH POSITIONS HAVE BUILT MEASURABLY IN THE PAST FEW WEEKS MR SULLIVAN SAYS THE RESERVOIR OF POTENTIAL BUYING POWER FOR FIXEDINCOME SECURITIES HAS GOTTEN MUCH DEEPER AND THAT MAY PROVE TO BE A WELCOME DEVELOPMENT IN APRIL AND MAY TREASURY NOTES AND BONDS ENDED LOWER WITH THOSE MATURING IN 10 YEARS OR MORE TAKING THE BIGGEST LOSSES IN RESPONSE TO A DISAPPOINTING EMPLOYMENT REPORT FOR MARCH THE 10YEAR NOTE DROPPED 3/4 POINT TO YIELD 616 THE FIVEYEAR NOTE HOWEVER DROPPED LESS THAN 1/4 POINT TO YIELD 529 THE MAIN FEATURE OF FRIDAY'S MARKET WAS A PRONOUNCED WIDENING OF THE GAP BETWEEN SHORTTERM AND LONGTERM YIELDS THE DIFFERENCE BETWEEN THE YIELD ON THE TWOYEAR NOTE AND THE 30YEAR BOND JUMPED TO 309 PERCENTAGE POINTS FRIDAY UP FROM 302 PERCENTAGE POINTS LATE THURSDAY AND ITS WIDEST SINCE LATE FEBRUARY CORPORATES SECURITIES TUMBLED WITH THE TREASURY MARKET FRIDAY MANY CABLETELEVISION INDUSTRY BONDS CONTINUED A SHARP PRICE PLUNGE IN REACTION TO A FEDERAL COMMUNICATIONS COMMISSION RULING TO CUT MONTHLY BASIC CABLE RATES 10 BONDS OF THE MORE HIGHLY LEVERAGED CABLE COMPANIES TOOK THE WORST DRUBBING CABLEVISION INDUSTRIES CORP'S 1075 COUPON NOTE MATURING IN 2002 FOR EXAMPLE FELL 3 3/4 POINTS OR 3750 FOR A NOTE WITH A 1000 FACE VALUE TO 104 AND ADELPHIA COMMUNICATIONS CORP SAW ITS 9625 COUPON NOTES MATURING IN 2005 FALL NEARLY THREE POINTS OVER THE COURSE OF THE WEEK OR NEARLY 30 FOR A NOTE WITH A 1000 FACE VALUE TO 93 1/2 BUT BONDS OF CABLE SYSTEMS WITH LESS LEVERAGE AND HIGHER FREE CASH FLOW WERE NOT HIT NEARLY AS HARD BY THE NEWS COMCAST CORP'S 10625 COUPON SENIOR SUBORDINATED DEBENTURES MATURING IN 2012 DROPPED 2 1/2 POINTS OVER THE WEEK OR 25 FOR A NOTE WITH A 1000 FACE VALUE TO 111 1/2 THE 10 ROLLBACK WON'T HIT EVERYONE EVENLY SAID CABLE BOND ANALYST LES LEVI OF MERRILL LYNCH & CO BUT RIGHT NOW IT'S VERY HARD TO TELL WHO WILL BE HARDEST HIT AMONG SPECIFIC COMPANIES THE INTEREST RATE GAP BETWEEN BONDS ISSUED BY PHILIP MORRIS COS AND TREASURY SECURITIES WITH COMPARABLE MATURITIES WIDENED 005 TO 010 PERCENTAGE POINT TRADERS SAID A WIDENING INTEREST RATE GAP WHICH OFTEN OCCURS WITH A DROP IN PRICES IS A SIGN THAT THE COMPANY'S BONDS ARE LOSING VALUE IN THE EYES OF INVESTORS THE COMPANY SAID FRIDAY THAT IT EXPECTS OPERATING EARNINGS IN ITS DOMESTIC TOBACCO DIVISION TO FALL BY AS MUCH AS 40 THIS YEAR AFTER IT CUTS PRICES ON ITS POPULAR MARLBORO BRAND IN A BID TO REGAIN MARKET SHARE LOST TO MAKERS OF DISCOUNT CIGARETTES BONDS OF OTHER COMPANIES WITH TOBACCO MANUFACTURING UNITS SUCH AS RJR NABISCO INC AND AMERICAN BRANDS INC LOST GROUND AS WELL THE PHILIP MORRIS MOVE WOULD LIKELY LEAD TO A BRUTAL PRICE WAR TRADERS SAID WHICH COULD IMPAIR THE EARNINGS AND INTEREST COVERAGE OF THE COMPANY'S COMPETITORS AS THEY STRUGGLE TO MAINTAIN MARKET SHARE MUNICIPAL BONDS WERE CAUGHT UP IN THE TORRENT OF SALES THAT HIT TREASURYS AND WERE GENERALLY 1/4 POINT TO 5/8 POINT LOWER AT THE END OF FRIDAY'S THIN TRADING ONE OF THE HARDER HIT TAXEXEMPT ISSUES WAS THE GEORGIA MUNICIPAL ELECTRIC AUTHORITY'S 550 POWER REVENUE BONDS OF 2020 THEY WERE DOWN 5/8 POINT AT 93 1/4 IN LATE TRADING TO YIELD 598 LAURA JERESKI CONTRIBUTED TO THIS ARTICLE 9304050008 930405 THE OUTLOOK LOW SAVINGS ALSO MAY SLOW EXPANSION BY ALFRED L MALABRE JR NEW YORK THERE IS UNDERSTANDABLE CONCERN THAT THE PILEUP OF DEBT MAY ACT AS A SERIOUS DRAG ON THE BUSINESS EXPANSION WITH THE FEDERAL BUDGET AWASH IN RED INK THE WORRY IS SURELY VALID BUT IT IS BY NO MEANS THE ONLY REASON TO QUESTION THE EXPANSION'S FUTURE VIGOR ANOTHER CONSIDERATION LESS PUBLICIZED BUT MAJOR IS THE LEVEL OF SAVINGS IT IS WOEFULLY LOW FOR WHAT IS WIDELY PRESUMED TO BE THE EARLY STAGES OF A LONG EXPANSION CONSUMERS SAVED ONLY 41 OF AFTERTAX INCOME ON THE AVERAGE IN FEBRUARY DOWN FROM 44 IN JANUARY RARELY HAVE THERE BEEN LOWER READINGS THE SAVINGS RATE WAS 4 IN OCTOBER 1990 BUT THAT WAS DURING A RECESSION AND NOW THE ECONOMY IS EXPANDING ALBEIT RATHER WEAKLY THE LATEST RATE WOULD BE LESS WORRISOME IF SAVINGS TENDED TO INCREASE AS THE ECONOMY EXPANDS BUT THIS ISN'T THE NORMAL PATTERN NOT SURPRISINGLY SAVINGS TEND TO SHRINK AS EXPANSIONS PROGRESS EARNINGS NATURALLY INCREASE ALONG WITH THE ECONOMY BUT SPENDING NORMALLY CLIMBS EVEN FASTER SO THAT SAVINGS ERODE THIS IS ESPECIALLY SO OVER THE COURSE OF LONG EXPANSIONS NEAR THE START OF THE 197580 UPTURN THE SAVINGS RATE WAS CLOSE TO 10 WHILE IN THE EXPANSION'S LAST THREE YEARS IT RANGED ONLY BETWEEN 5 AND 7 THE DECLINE WAS EVEN SHARPER OVER THE COURSE OF THE 198290 EXPANSION THE NATION'S LONGEST IN PEACETIME CLOSE TO 8 WHEN THE EXPANSION BEGAN THE SAVINGS RATE DIPPED BELOW 4 NEAR ITS END A GLOBAL FRAMEWORK HELPS PUT THE SAVINGS DECLINE IN THE US INTO FULLER PERSPECTIVE THE US RATE IS FAR BELOW COMPARABLE RATES PREVAILING IN OTHER MAJOR NATIONS FOR INSTANCE IT IS ROUGHLY ONEFIFTH AS HIGH AS THE SAVINGS RATE IN JAPAN ABOUT ONEQUARTER AS HIGH AS THE RATE IN GERMANY AND ROUGHLY ONETHIRD AS HIGH AS THE RATES IN BRITAIN FRANCE AND CANADA IN MOST OF THESE COUNTRIES MOREOVER THE SAVINGS RATE HAS RISEN IN RECENT YEARS JAPAN'S RATE HAS CLIMBED SEVEN PERCENTAGE POINTS SINCE THE EARLY 1980S AND THE RATE IN BRITAIN HAS JUMPED SEVEN POINTS JUST SINCE 1988 THE RATES IN FRANCE AND GERMANY HAVE CLIMBED THREE POINTS SINCE THE MID1980S WITH THE SAVINGS RATE IN THE US AT ONLY ABOUT 4 CONSUMERS PRESUMABLY WILL BE RELUCTANT TO LET THEIR SAVINGS SHRINK VERY MUCH MORE AN ADDED CONSTRAINT IS THE WIDESPREAD REALIZATION THAT THE PRICE OF A HOME NOWADAYS MAY DROP AS WELL AS INCREASE WHEN HOME PRICES ROSE PERENNIALLY MANY PEOPLE CAME TO VIEW THEIR HOMES ALMOST AS SAVINGS ACCOUNTS THAT WOULD GROW FOREVER IN THIS MISTAKEN BELIEF THEY ALLOWED THEIR SAVINGS TO DROP TO LEVELS THAT MAY SEEM IMPRUDENT IN TODAY'S UNCERTAIN HOUSING MARKET THE LIKELY UPSHOT IS THAT CONSUMER SPENDING WILL PROVIDE LIMITED FUEL FOR THE EXPANSION IN COMING MONTHS AT BEST ANY RISE IN CONSUMER OUTLAYS IS APT TO MIRROR ONLY INCREASES IN INCOME THESE GAINS IN TURN MAY WELL PROVE MODEST HELD DOWN BY PERSISTENT UNEMPLOYMENT AND CONTINUING EMPLOYER EFFORTS TO REIN IN LABOR COSTS FEW ECONOMISTS EXPECT CONSUMER RESTRAINT TO CAUSE A NEW RECESSION ANY TIME SOON BUT MOST SAY IT WILL DRAG DOWN OVERALL GROWTH CONSIDERABLY A STUDY BY DRI/MCGRAWHILL AN ECONOMIC CONSULTING FIRM IN LEXINGTON MASS LOOKS FOR THE SAVINGS RATE TO REMAIN AT ROUGHLY 4 THROUGH THE REST OF THIS YEAR AND IN 1994 ACCORDINGLY IT PREDICTS THAT CONSUMERS WILL PLAY ONLY A SUPPORTING ROLE IN THE RECOVERY RATHER THAN THE LEAD ROLE THEY PLAYED IN THE 198290 UPTURN THAT IS SOBERING WHEN ONE CONSIDERS THAT CONSUMER SPENDING ACCOUNTS FOR TWOTHIRDS OF ALL ECONOMIC ACTIVITY THE ECONOMY THE STUDY GOES ON IS LIKELY TO GROW DURING THE NEXT SIX MONTHS AT AN ANNUAL RATE OF LESS THAN 25 FAR BELOW THE 47 PACE OF LAST YEAR'S FOURTH QUARTER THE REPORT ANTICIPATES SLIGHTLY FASTER RATES OF EXPANSION LATE THIS YEAR AND IN 1994 BUT THEN A PRONOUNCED SLOWING IN 1995 THE CONSTRAINED CIRCUMSTANCES OF MANY CONSUMERS SHOULD BE A WARNING SIGNAL TO THE CLINTON ADMINISTRATION SAYS LACY H HUNT CHIEF ECONOMIST IN NEW YORK FOR HONGKONG & SHANGHAI BANKING CORP REFERRING TO THE CLINTON ECONOMIC PROGRAM HE CAUTIONS THAT THE EXPANSION APPEARS FAR TOO FRAGILE TO ENDURE 38 BILLION IN NEW PERSONALINCOME TAXES AND 10 BILLION OF ADDITIONAL CORPORATE TAXES 9304050007 930405 INTERNATIONAL DAIMLERBENZ SAYS SPECIAL GAIN IN 1992 TOTALED 282 BILLION SPECIAL TO THE WALL STREET JOURNAL STUTTGART GERMANY DAIMLERBENZ AG DECLARED A 449 BILLIONMARK 282 BILLION EXTRAORDINARY EARNINGS GAIN IN ITS 1992 FINANCIAL STATEMENT THE DISCLOSURE MORE OF A BALANCE SHEET ADJUSTMENT THAN ACTUAL GAINS IN INCOME IS THE RESULT OF THE GERMAN INDUSTRIAL COMPANY'S EFFORTS TO LIST ITS SHARES ON THE NEW YORK STOCK EXCHANGE DAIMLER WAS FORCED FOR THE FIRST TIME TO DISCLOSE ITS HIDDEN RESERVES WITH THE STATEMENT THE COMPANY IS BRINGING ITS REPORTING PRACTICES INTO LINE WITH THE MORE EXACTING STANDARDS APPLIED IN THE US AS SUCH IT IS A MILESTONE IN GERMAN CORPORATE HISTORY AS ANOTHER PART OF THE PLAN TO LIST IN THE US DAIMLERBENZ SAID IT WILL MERGE WITH ITS PARENT HOLDING COMPANY MERCEDES AG HOLDING THE PARENT HOLDING COMPANY'S SHARES WILL BE EXCHANGED FOR MERCEDES DAIMLERBENZ AG SHARES ON A 1FOR1 BASIS IN ITS 1992 FINANCIAL REPORT DAIMLER SAID ITS GROUP CONSOLIDATED PROFIT NOT COUNTING THE SPECIAL GAIN FELL 25 TO 145 BILLION MARKS IN 1992 FROM 194 BILLION MARKS IN 1991 IN NOVEMBER THE COMPANY PROJECTED THAT ITS GROUP NET WOULD DROP TO ABOUT 15 BILLION MARKS AS EXPECTED DAIMLER KEPT ITS 1992 PERSHARE DIVIDEND AT 13 MARKS MORE DETAILS OF 1992 RESULTS WILL BE GIVEN AT A NEWS CONFERENCE TOMORROW DAIMLERBENZ'S CHIEF FINANCIAL OFFICER GERHARD LIENER SAID THAT 28 BILLION MARKS OF THE ONETIME GAIN STEMS FROM A REVALUATION OF INTEREST EARNED IN THE GROUP'S HUGE PENSION FUND ANOTHER 17 BILLION MARKS EMANATED FROM A REVALUATION OF THE COMPANY'S PHYSICAL ASSETS AND INVENTORY THE BIG BOARD LISTING WILL COME IN THE FALL MR LIENER SAID 9304050006 930405 US FISHING LIMITS ON SALMON EXPECTED TO BE EXTENDED PORTLAND ORE FEDERAL REGULATORS ARE ABOUT TO EXTEND FOR ANOTHER YEAR RESTRICTIONS ON SALMON FISHING THE PACIFIC FISHERIES MANAGEMENT COUNCIL WHICH SETS LIMITS AND QUOTAS FOR SALMON AND OTHER OCEANGOING FISH MEETS TODAY TO CONSIDER HOW MUCH TO RESTRICT SALMON FISHING ALONG THE PACIFIC COAST LAST YEAR THE COUNCIL FOR THE FIRST TIME VIRTUALLY BANNED SALMON FISHING FOR MUCH OF THE COAST COSTING FISHERMEN MILLIONS OF DOLLARS THIS YEAR'S LIMITS MAY GO FURTHER IN SOME AREAS AND OVERALL ARE EXPECTED TO CONTINUE LAST YEAR'S RESTRICTIONS ON COMMERCIAL AND SPORT SALMON FISHING FROM THE CANADIAN BORDER TO MEXICO IT'S GOING TO BE DISASTROUS SAID GLEN SPAIN A HABITAT SPECIALIST WITH THE PACIFIC COAST FEDERATION OF FISHERMEN THE SALMON'S PREDICAMENT IS TIED TO THE COLLAPSING ECOSYSTEMS OF THE WEST'S RIVERS THE ONCEMULTITUDINOUS SALMON STOCKS HAVE PLUNGED BECAUSE OF LOGGING DAMS OVERFISHING AND URBAN SPRAWL HUNDREDS OF MILES OF SPAWNING STREAMS HAVE BEEN LOST IN JUST THE PAST DECADE THE PROBLEM CARRIES A STEEP ECONOMIC PRICE SALMON FISHING GENERATES 60000 JOBS AND 125 BILLION IN PERSONAL INCOME ANNUALLY LESS THAN A DECADE AGO BOTH FIGURES WERE MORE THAN TRIPLE THAT THE SALMON PROBLEM GOT MUCH ATTENTION AT PRESIDENT CLINTON'S TIMBER SUMMIT LAST WEEK MR SPAIN AND MANY OTHERS BELIEVE PERMANENT LOGGING RESTRICTIONS AND HABITAT RESTORATION PROGRAMS ARE THE ONLY WAY TO SAVE THE FISH THE PENDING LIMITS WON'T AFFECT CONSUMERS MUCH MOST SALMON CONSUMED IN THE US COMES FROM FOREIGN WATERS AND FISH FARMS IN NORWAY CANADA AND CHILE 9304050005 930405 PRAGUE'S INVESTORS EAGERLY ANTICIPATE EXCHANGE'S DEBUT SOME FIRMS RESTRUCTURE IN VIEW OF TAKEOVER SPECULATION AERO COMPLETES STOCK PLAN BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL PRAGUE CZECH REPUBLIC THE STOCK EXCHANGE HASN'T OPENED YET BUT BANKERS AND COMPANIES IN PRAGUE ARE CHAMPING AT THE BIT FOR TRADING TO START SHARES OF THE 1491 COMPANIES IN THE CZECH REPUBLIC AND SLOVAKIA THAT HAVE BEEN VOUCHERIZED THROUGH THE FORMER CZECHOSLOVAKIA'S PRIVATIZATION EFFORT ARE DUE TO BEGIN TRADING NEXT MONTH THE PROGRAM EFFECTIVELY TRANSFERRED OWNERSHIP FROM THE STATE TO INDIVIDUALS AND BECAUSE MOST PEOPLE DECIDED TO ENTRUST THEIR VOUCHERS TO SOME 70 INVESTMENT FUNDS ABOUT 75 OF THESE SHARES ARE NOW HELD BY THE FUNDS THERE'S STILL NO REAL LIQUIDITY IT'S ALL A TWINKLE IN EVERYBODY'S EYE AT THE MOMENT SAYS ALEXANDER SEIPPEL HEAD OF THE BANKERS TRUST OFFICE IN PRAGUE BUT A LOT OF QUIET DEALS ARE BEING STRUCK IN PREPARATION FOR TRADING WHICH EVERYBODY SEEMS TO THINK WILL RESULT IN A TAKEOVER BOOM IN THE COUNTRY'S INCIPIENT SECURITIES MARKET WHITE & CASE WHICH HAS ONE OF THE BIGGEST AMERICAN LAW OFFICES IN PRAGUE SAYS IT HAS BEEN WORKING WITH SOME FUNDS TO RAISE CASH TO PAY OFF INVESTORS WHO WERE PROMISED LARGE RETURNS ON THEIR MONEY THAT PRESSURE IS LIKELY TO CAUSE MANY FUNDS TO LOOK FOR BUYERS OF SHARES IN COMPANIES THEY OWN WE HAVE FINANCIAL AND STRATEGIC INVESTORS LOOKING BEYOND PRIVATIZATION STRUCTURES WHO ARE LOOKING AT HOW TO GET CONTROL OF COMPANIES ON THE SECONDARY MARKET SAYS DANIEL ARBESS WHO HEADS WHITE & CASE'S OFFICE IN PRAGUE THE MANAGER OF ONE FUND WITH STAKES IN ABOUT 100 COMPANIES SAYS HE HAS FORGED A NUMBER OF PREARRANGED TRANSACTIONS THAT CAN BE COMPLETED ONCE VOUCHERS ARE EXCHANGED FOR SHARES WE HAVE PEOPLE WHO WANT TO BUY SHARES IN COMPANIES HE SAYS ALL THIS ACTIVITY COMES DESPITE THE COMMON PERCEPTION THAT MANY OF THE CZECH REPUBLIC'S INDUSTRIAL COMPANIES ARE UNDERCAPITALIZED AND EVEN INSOLVENT INDEED THE GOVERNMENT HAS POSTPONED IMPLEMENTING A BANKRUPTCY LAW TWICE AND SOME BELIEVE IF THE LAW DOES GO INTO EFFECT AS SCHEDULED LATE THIS MONTH THE BIG BANG MAY BECOME A BIG BUST THE CZECH NATIONAL BANK ESTIMATES AS MANY AS 30 OF THE COUNTRY'S COMPANIES ARE TECHNICALLY BANKRUPT STILL THE BETTING IN PRAGUE IS THAT THE MINISTRY OF FINANCE WILL CONTROL WHICH COMPANIES FILE AND WHICH DON'T ALLOWING FOR A GRADUAL RESTRUCTURING OF FIRMS THE NATIONAL BANK SAYS BANKS HAVE BEEN BUILDING RESERVES AGAINST THEIR BAD DEBTS MANY OF WHICH STEM FROM THE UNCOLLECTIBILITY OF TRADE RECEIVABLES FROM THE FORMER SOVIET UNION BUT TALK ABOUT SMALLER BANKS GOING UNDER IS COMMON THERE ARE SOME GOOD COMPANIES SAYS MR ARBESS PARTICULARLY IN THE CHEMICAL PULP AND PAPER ENERGY AND ENGINEERING INDUSTRIES TALK OF TAKEOVERS AND BANKRUPTCY IS LEADING MANY CZECH COMPANIES TO RESTRUCTURE IN ANTICIPATION WITH THE ADVICE OF BANKERS TRUST AERO AS IN FEBRURARY FOR INSTANCE FINALIZED AN EMPLOYEE STOCKOWNERSHIP PLAN WITH TWO GOALS IN MIND TO GIVE EMPLOYEES AN INCENTIVE TO BOOST PROFITS AND TO GIVE EMPLOYEES AND MANAGEMENT SOME CONTROL OVER THEIR DESTINY THE CZECH REPUBLIC'S MAJOR AEROSPACE COMPANY EMPLOYING 17000 AERO IS AN AMALGAM OF 11 SUBSIDIARIES MANY OF WHICH ARE TECHNICALLY INSOLVENT BUT THE COMPANY'S MILITARY JETS HAD A WORLDWIDE REPUTATION UP UNTIL WORLD WAR II AND IT WAS THE WORLD'S LARGEST BUILDER OF JET TRAINERS IN 1960 UNDER THE WARSAW PACT IN 1989 WITH MOST JET TRAINERS GOING TO THE SOVIET UNION AERO ACCOUNTED FOR 66 OF THE WORLD'S PRODUCTION BUT THAT MARKET DRIED UP WITH THE END OF THE COLD WAR WHILE AERO HAS CONTRACTS FROM DEVELOPING NATIONS FOR TRAINERS VALUED AT 265 MILLION IT HAS CASHFLOW PROBLEMS WHICH STEM FROM THE 57 PLANES IT BUILT BUT CAN'T DELIVER TO THE FORMER EAST BLOC LONGTERM CREDIT IN THE CZECH REPUBLIC DOESN'T EXIST SO THE COMPANY IS FINANCING PRODUCTION WITH SHORTTERM LOANS IT ROLLS OVER AT INTEREST RATES OF 14 TO 17 THE MILITARY JET TRAINERS ARE THE ONE PRODUCT THAT TODAY COULD POSSIBLY MAKE IT ON THE WORLD MARKET THE TRAINERS ARE MADE BY AERO VODOCHODY LTD ONE OF THE SUBSIDIARIES WHICH CONTRACTS FOR PARTS WITH TWO OTHER UNITS LETOV LTD AND TECHNOMETRA RADOTIN LTD TO GET MANAGERS AND EMPLOYEES TO THINK JOINTLY THE THREE SUBSIDIARIES FORMED THEIR EMPLOYEE STOCKOWNERSHIP PLAN UNDER THE PLAN'S STRUCTURE EMPLOYEES OF THE SUBSIDIARIES GET AN INITIAL 5 OF THE SUBSIDIARIES' STOCK AND AFTER FOUR YEARS THE EMPLOYEE PLAN MAY END UP OWNING ABOUT 34 OF THE THREE UNITS' STOCK AERO COULD RETAIN ABOUT 66 OF THE UNITS' SHARES THROUGH THE STOCK PLAN WHICH AERO IS CALLING AN EMPLOYEE INCENTIVE PLAN WE CAN MAINTAIN SOME INFLUENCE SAYS ZDENEK CHALUPNIK PRESIDENT AND CHIEF EXECUTIVE OF AERO VODOCHODY IF THE MUTUAL FUNDS GOT CONTROL THEY COULD GIVE THE HOLDING COMPANY A DIFFERENT DIRECTION WITH OUR OWNERSHIP WE CAN BLOCK ANY MAJOR DECISION THAT WOULD BE COMPLETELY AGAINST OUR INTERESTS SUCH AS THE SALE OF THE COMPANY JOINTVENTURE AGREEMENTS OR PERSONNEL CHANGES SAYS MR CHALUPNIK OF COURSE BECAUSE THE GOVERNMENT STILL RETAINS 64 OF AERO MUTUAL FUNDS' INTERESTS AREN'T AN IMMEDIATE PROBLEM IN THE MEANTIME MR CHALUPNIK SAYS THE COMPANY IS LOOKING FOR A FINANCIAL PARTNER AS IT HAS ALREADY ADAPTED ITS TRAINERS TO THE WEST WE NEED A FINANCIAL PARTNER MORE THAN A TECHNICAL PARTNER HE SAYS FOREIGN DELEGATIONS COME AND THINK WE HAVE JUST COME DOWN FROM TREES LIKE MONKEYS BUT ONCE THEY SEE WHAT WE CAN DO THEY FIND THE FIRM'S ENGINEERING TALENTS ARE ON PAR WITH THE WESTERN WORLD 9304050004 930405 BUSINESS BRIEF INVESTOR GROUP MULLS PROXY FIGHT TO GAIN SEATS ON TESORO BOARD SAN ANTONIO AN INVESTOR GROUP THAT HOLDS A 131 STAKE IN TESORO PETROLEUM CORP IS THREATENING A PROXY FIGHT TO GAIN TWO SEATS ON THE ENERGY COMPANY'S BOARD THE GROUP KNOWN AS UNITED PARTNERS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION REITERATING ITS INTEREST IN BOARD REPRESENTATION THE FILING SAYS THE GROUP'S REQUEST HAS BEEN IGNORED BY THE COMPANY SINCE OCTOBER THE FILING SAYS THE GROUP LED BY INVESTOR FRAYDUN MANOCHERIAN WILL CONSIDER ITS OPTIONS INCLUDING A PROXY SOLICITATION TO ELECT ITS OWN SLATE OR OPPOSING MANAGEMENT'S SLATE TESORO'S BOARD WILL CONSIDER MR MANOCHERIAN'S REQUEST FORMALLY AT THE NEXT REGULARLY SCHEDULED BOARD MEETING WITHIN 30 TO 45 DAYS SAID A TESORO SPOKESMAN THE OIL AND GAS COMPANY DECLINED TO COMMENT FURTHER ABOUT MR MANOCHERIAN OR UNITED PARTNERS THE SPOKESMAN SAID THAT METROPOLITAN LIFE INSURANCE CO OF NEW YORK WHICH HOLDS A 28 STAKE IN TESORO HAS THREE MEMBERS ON THE BOARD QUO INVESTMENT CO A PRIVATE COMPANY BASED IN SINGAPORE HAS A 125 STAKE AND ONE DIRECTOR UNITED PARTNERS CONSIDERS MET LIFE A STUMBLING BLOCK TO POTENTIAL REFINANCING OF THE COMPANY IN A LETTER TO MET LIFE LAST FALL THE GROUP SAID MET LIFE SHOULD CONVERT TO COMMON SHARES ITS CUMULATIVE CONVERTIBLE PREFERRED STOCK WORTH 20 A SHARE IN A LETTER ATTACHED TO AN SEC FILING IN NOVEMBER MET LIFE SAID UNITED PARTNERS' SUGGESTION IS NOT REALISTIC IN 1992 TESORO HAD A LOSS OF 658 MILLION OR 534 A SHARE ON 9464 MILLION IN REVENUE THE LOSS INCLUDED AN ACCOUNTING CHARGE OF 206 MILLION 9304050003 930405 ECONOMY LABOR REPORT RAISES CONCERNS OVER ECONOMY LAST MONTH'S EMPLOYMENT DECLINED BY 22000 JOBS EARNINGS INCREASED 05 BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MARCH'S UNEMPLOYMENT REPORT RAISED TROUBLING WARNING SIGNS ABOUT THE ECONOMY AND INFLATION THE LABOR DEPARTMENT SAID THE ECONOMY LOST 22000 JOBS LAST MONTH WHILE THE UNEMPLOYMENT RATE HELD STEADY AT 7 THE DECLINE CUT INTO IMPRESSIVE UPWARD REVISED GAINS OF 367000 JOBS IN FEBRUARY AND 113000 IN JANUARY WHICH HAD FOLLOWED MONTHS OF ONLY NEGLIGIBLE INCREASES IN ADDITION AVERAGE HOURLY EARNINGS ROSE 05 IN MARCH SINCE THE END OF LAST YEAR HOURLY EARNINGS HAVE RISEN AT A 4 ANNUAL RATE SEEMING TO SUGGEST THE INFLATION PICTURE MAY BE HEATING UP TAKEN BY ITSELF THE UNEMPLOYMENT REPORT IS HARDLY CAUSE FOR ALARM IN THE FIRST THREE MONTHS OF THIS YEAR THE ECONOMY MANAGED TO GENERATE AN AVERAGE OF ROUGHLY 150000 JOBS A MONTH MORE THAN IN ANY OTHER QUARTER IN TWO YEARS AND INFLATION IS STILL FAIRLY WELLBEHAVED BUT IN THE CONTEXT OF A BARRAGE OF OTHER STATISTICS THE EMPLOYMENT FIGURES ARE A FURTHER INDICATION THAT THE ECONOMY HAS SLOWED DOWN CONSIDERABLY FROM ITS FOURTHQUARTER PACE CONSUMER CONFIDENCE HAS BEEN DROPPING STEADILY SINCE DECEMBER WITH THE LATEST UNIVERSITY OF MICHIGAN INDEX SHOWING A DECLINE TO 859 IN MARCH FROM 866 IN FEBRUARY CONSUMER SPENDING AND INCOMES HAVE ALSO SLOWED AND THE MANUFACTURING SECTOR SEEMS TO HAVE LOST SOME STEAM AS WELL MOREOVER OTHER RECENT NEWS ON INFLATION HASN'T BEEN SO GOOD CONSUMER PRICES EXCLUDING THE VOLATILE FOOD AND ENERGY SECTORS POPPED UP 05 IN JANUARY AS WELL AS FEBRUARY AFTER MONTHS OF FAIRLY TINY GAINS THE INCREASE IN EARNINGS COMBINED WITH OTHER INFLATION STATISTICS OF LATE ARE NOT ENCOURAGING FROM AN INFLATION STANDPOINT SAID DONALDSON LUFKIN & JENRETTE ECONOMIST MARILYN SCHAJA THE JOB NEWS GAVE THE CLINTON ADMINISTRATION A CHANCE TO REITERATE ITS VIEW THAT THE ECONOMY NEEDS A STIMULUS PACKAGE WHICH IS BEING BLOCKED BY A FILIBUSTER BY SENATE REPUBLICANS TO GET IT SOLIDLY BACK ON ITS FEET THE ECONOMY DEFINITELY APPEARS TO BE SLOWING DOWN SAID LAURA TYSON HEAD OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS WE HAVEN'T HAD ENOUGH GOOD NEWS ON THE EMPLOYMENT FRONT TO TAKE A SANGUINE POSITION THAT WE DON'T NEED A STIMULUS TO GET US WHERE WE WANT TO BE INDEPENDENT ANALYSTS ALSO FOUND THE NEWS DISCONCERTING A SUSPENSION OF ECONOMIC ACTIVITY SEEMS TO HAVE OCCURRED IN MARCH AND THERE ARE SIGNS THAT PEOPLE ARE NOT TOO SURE ABOUT THE STRENGTH OF THE RECOVERY SAID AUDREY FREEDMAN PRESIDENT OF MANPOWER PLUS AN EMPLOYMENT CONSULTING FIRM MUCH OF THE DROP IN PAYROLL JOBS DURING MARCH MAY HAVE BEEN WEATHERRELATED MARCH CAME IN LIKE A LION THIS YEAR WITH ONE OF THE WORST SNOWSTORMS IN HISTORY BATTERING THE EAST COAST AND HEAVY RAINS HITTING CALIFORNIA AND ARIZONA THAT PERHAPS HELPS TO EXPLAIN THE LOSS OF CONSTRUCTION JOBS AFTER A 93000 GAIN THE MONTH BEFORE WHEN THE WEATHER WAS MUCH BETTER IT MAY ALSO BE WHY THE MANUFACTURING WORKWEEK DROPPED 03 HOUR IN MARCH AND OVERTIME DECLINED 04 HOUR AFTER CLIMBING TO RECORDS IN PRECEDING MONTHS ANALYSTS SAID THAT COULD MEAN INDUSTRIAL PRODUCTION DROPPED OFF IN MARCH AS WELL BUT ALL THE WEAKNESS CAN'T BE EXPLAINED AWAY BY THE WEATHER THE ONLY SUBSTANTIAL INCREASE IN EMPLOYMENT LAST MONTH CAME IN THE SERVICES SECTOR WHICH GREW BY 60000 AND A LARGE PART OF THAT GAIN WAS IN TEMPORARYHELP SERVICE AGENCIES WHICH MEANS BUSINESSES ARE STILL RELUCTANT TO HIRE PERMANENT EMPLOYEES MANUFACTURING AND RETAIL TRADE POSTED DECLINES OF 9000 AND 7000 JOBS RESPECTIVELY THERE WERE OTHER TROUBLING SIGNS IN THE REPORT THE NUMBER OF AMERICANS WHO HAVE BEEN UNEMPLOYED FOR SIX MONTHS OR MORE STOOD AT 18 MILLION IN MARCH TRIPLE PRERECESSION LEVELS THE NUMBER OF DISCOURAGED WORKERS PEOPLE WHO HAVE QUIT LOOKING FOR JOBS BECAUSE THEY ARE PESSIMISTIC ABOUT THEIR CHANCES HELD STEADY THE NUMBER OF PEOPLE WORKING PART TIME ONLY BECAUSE THEY CAN'T FIND FULLTIME JOBS ACTUALLY DECLINED LAST MONTH BUT THAT FOLLOWED AN INCREASE IN FEBRUARY WILLIAM G BARRON THE GOVERNMENT'S DEPUTY COMMISSIONER OF LABOR STATISTICS SAID THE NUMBER OF PARTTIME WORKERS IS STILL ABOVE PRERECESSION LEVELS AND HAS SHOWN NO CLEAR TREND FOR NEARLY A YEAR THERE IS A LITTLE BIT OF CHUGGING GOING ON HERE BUT THERE IS STILL STRENGTH IN THE ECONOMY SAID DONALD RATAJCZAK HEAD OF ECONOMIC FORECASTING AT GEORGIA STATE UNIVERSITY IF WE DO THE SAME OR WORSE IN APRIL OBVIOUSLY WE'VE GOT A PROBLEM ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED 9304050002 930405 FRUSTRATED FOR MONTHS BEARS STICK TO THEIR GUNS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER TWO YEARS OF WATCHING STOCK PRICES CLIMB PROFESSIONAL BEARS FIND SCANT JOY IN FRIDAY'S STOCK MARKET TUMBLE I'M NOT COMPLAINING SAYS CHARLES A ALLMON A MONEY MANAGER WITH 75 OF HIS PORTFOLIO IN CASH BUT HE EXPECTS THE MARKET TO REBOUND AGAIN AT LEAST FOR A WHILE BEFORE THE REALLY BIG PLUNGE HITS IT'S A FOOL'S PARADISE OUT THERE HE SAYS WALL STREET'S CADRE OF BEARISH MONEY MANAGERS HAVE BEEN FEELING INCREASING PRESSURE FOR MONTHS AS THE BULL MARKET KEEPS STEAMING AHEAD THEIR INVESTMENT RETURNS ARE LAGGING BEHIND THE OVERALL MARKET AND CLIENTS ARE DESERTING THEM TO CLIMB ON THE BULLS' BANDWAGON PEOPLE SAY HOW CAN YOU BE SO MUCH IN CASH WE WANT SOME ACTION WE'RE GOING SOMEPLACE ELSE SAYS MR ALLMON IN THE LAST FIVE TO SIX MONTHS I'VE LOST ABOUT 5 OF MY INDIVIDUAL ACCOUNTS YET DESPITE THE PAIN OF SITTING ON THE SIDELINES FOR MONTHS AS STOCK PRICES RATCHETED HIGHER THESE BEARS DOGGEDLY CONTINUE TO STICK TO THEIR STRATEGIES AND TO THEIR LONGSTANDING PREDICTIONS THAT A STOCK MARKET PLUNGE IS INEVITABLE THE WAY THEY SEE IT THEY AREN'T MISSING THE RIDE UP THEY'RE AVOIDING THE RIDE DOWN WHAT I'M MISSING IS A LOT OF DOWNSIDE WHEN THINGS GO OFF THE CLIFF SAYS MR ALLMON CLEARLY BEARS HAVE A HARD SELL THESE DAYS THE LONGER THE BULL MARKET ENDURES IT'S AT LEAST TWO YEARS OLD DEPENDING ON HOW YOU MEASURE IT THE WORSE THE BEAR'S CASHLADEN PORTFOLIOS PERFORM AND THE LOUDER THEIR CLIENTS COMPLAIN WE ARE ALWAYS UNDER PRESSURE WHEN THE MARKET GOES UP AND WE HAVE CASH SAYS HENRY VAN DER EB PRESIDENT OF THE MATHERS FUND PEOPLE WHO HAVE MONEY WITH YOU GET IMPATIENT YOU WIND UP GETTING REDEMPTIONS AND LOSING ACCOUNTS MR VAN DER EB TOO HAS 75 OF HIS 510 MILLION FUND IN CASH HE HAS BEEN AGGRESSIVELY POSITIONED FOR A STOCK MARKET TUMBLE SINCE 1990 WITH THE CASH PORTION OF HIS PORTFOLIO AVERAGING 87 FOR THE LAST THREE YEARS NEEDLESS TO SAY HIS PERFORMANCE DURING THE PERIOD HAS LAGGED BEHIND THE MAJOR INDEXES IN THE LAST THREE YEARS THE RETURN FOR THE MATHERS FUND TOTALED 246 COMPARED WITH 322 FOR THE DOW JONES INDUSTRIAL AVERAGE AND 36 FOR STANDARD & POOR'S 500STOCK INDEX LAST YEAR THE FUND GAINED 31 COMPARED WITH 74 FOR THE DOW JONES INDUSTRIALS AND 76 FOR THE S&P 500 SO FAR THIS YEAR THE FUND IS FLAT MR VAN DER EB ARGUES THAT HIS RISKAVERSE APPROACH HAS PAID OFF OVER THE LONG TERM THE MATHERS FUND HAS DELIVERED A COMPOUND ANNUAL RETURN OF 142 SINCE ITS INCEPTION IN 1965 COMPARED WITH 96 FOR THE DOW JONES INDUSTRIALS AND 103 FOR THE S&P 500 MOREOVER THE MATHERS FUND WAS THE TOP PERFORMING GROWTH FUND IN 1987 ACCORDING TO LIPPER ANALYTICAL SERVICES ITS 27 GAIN DURING THE YEAR OF THE STOCK MARKET CRASH RESULTED FROM A STRONG EQUITY POSITION FOR HALF THE YEAR THEN A SHIFT TO 60 CASH BEFORE BLACK MONDAY AND A SWIFT MOVE BACK INTO STOCKS AFTER OCT 19 BUT TODAY THE BEARS ARE BATTLING THE PREVAILING VIEW THAT THE BULL MARKET WILL BE SUSTAINED BY LOW INFLATION LOW INTEREST RATES AND AN IMPROVING ECONOMY SO HOW DOES MR VAN DER EB JUSTIFY HIS HIGH CASH POSITION IN SUCH A STOCKFRIENDLY ENVIRONMENT IT'S VERY EASY TO EXPLAIN HE SAYS STOCKS ARE EXTREMELY OVERPRICED MR VAN DER EB CONTENDS THAT A POTENT MIX OF HIGH STOCK PRICES AND RELATIVELY LOW EARNINGS AND DIVIDENDS COUPLED WITH SLOW ECONOMIC GROWTH AND A SPECULATIVE FRENZY AMONG INDIVIDUAL INVESTORS POINTS TO AN IMPENDING BEAR MARKET EVEN IF EARNINGS THIS YEAR MATCH OR EXCEED ANALYSTS' OPTIMISTIC PREDICTIONS IT WON'T BE ENOUGH TO CONVINCE MR VAN DER EB TO CHANGE HIS MIND VALUATION LEVELS ARE SO EXCEPTIONALLY HIGH THE STOCK MARKET HAS ALREADY DISCOUNTED INCREASES IN EARNINGS MANY TIMES OVER HE ASSERTS MOREOVER WITH PRICES HIGH THE MARKET IS ESPECIALLY SENSITIVE TO POLITICAL SHOCKS MR VAN DER EB SAYS HE DRAWS A PARALLEL WITH THE KENNEDY DAYS WHEN STOCKS SIMILARLY TRADED AT HIGH LEVELS INTEREST RATES WERE LOW INFLATION WAS SUBDUED AND ECONOMIC GROWTH MODEST THE DOW INDUSTRIALS DROPPED 28 IN 1962 BECAUSE KENNEDY TOOK ON THE STEEL INDUSTRY MR VAN DER EB SAYS IT'S VERY ANALOGOUS TO CLINTON TAKING ON THE DRUG INDUSTRY TO MR VAN DER EB CAUTION REMAINS THE WATCHWORD WHAT PEOPLE HAVE TO DETERMINE IS HOW MUCH RISK THEY WANT TO TAKE ON HE SAYS IF THEY WANT TO SPECULATE IN A MARKET THAT IS MORE OVERVALUED THAN IT'S BEEN IN 70 YEARS GOD BLESS THEM MR ALLMON WHO MANAGES 200 MILLION IN PRIVATE ASSETS IN ADDITION TO HIS 125 MILLION CLOSEDEND FUND ALSO THINKS INVESTORS IGNORE THE STOCK MARKET'S RISK AT THEIR OWN PERIL NOBODY'S LOOKING AT RISK ANYMORE EVERYONE KEEPS SCREAMING FOR HIGHER RETURNS HE SAYS I'D RATHER TAKE 2 TO 4 ON MY MONEY IN CASH THAN RISK LOSING 20 TO 40 OF IT IN THE STOCK MARKET SOME OF HIS CLIENTS DISAGREE WITH HIS RETURNS LAGGING THE CHARLES ALLMON TRUST WAS UP 95 IN 1991 AND 46 IN 1992 MR ALLMON HAS WATCHED SOME INVESTORS DEPART FOR MORE AGGRESSIVE MANAGERS TO HIS CREDIT MR ALLMON WAS ALSO ABOUT 70 IN CASH IN 1987 AND PREDICTED TWO MONTHS BEFORE THE CRASH THAT THE DOW JONES INDUSTRIALS COULD PLUNGE AS MUCH AS 160 POINTS IN A DAY HE ALSO LOST ABOUT 5 OF HIS CLIENTS IN 1987 EVERYBODY SAID I WAS CRAZY SAYS MR ALLMON WHO HAS ALSO PUBLISHED THE GROWTH STOCK OUTLOOK NEWSLETTER FOR 29 YEARS I THINK THIS THING IS FAR MORE DANGEROUS THAN WHAT WE SAW IN 1987 TODAY MR ALLMON SEES A BRIGHT WARNING FLAG IN THE RACE INTO MUTUAL FUNDS HE COMPARES THE CURRENT TREND TO A BULGE IN THE INDUSTRY IN THE EARLY 1970S HALF THE MUTUAL FUNDS OPERATING IN DECEMBER 1972 ARE NO LONGER IN EXISTENCE MR ALLMON SAYS AND 70 OF TODAY'S MUTUAL FUNDS WILL NOT BE AROUND BY THE YEAR 2010 THEY'RE GOING TO BE WIPED OUT HE ARGUES THAT STOCKS' PRICE TO BOOK VALUE IS THE HIGHEST THIS CENTURY AND THE DIVIDEND YIELD OF 28 IS NEAR HISTORICALLY LOW LEVELS BUT HE ADDS THE BULL MARKET PROBABLY STILL HAS FURTHER TO GO WITH THE DOW JONES INDUSTRIALS CLIMBING ANOTHER 8 TO 15 BEFORE A TUMBLE OF 35 TO 60 IT ISN'T JUST HIGH PRICES THAT WORRY JOHN L SCHROEDER EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER AT HOME INSURANCE CO HE'S ALSO CONCERNED THAT SLOWERTHANEXPECTED ECONOMIC GROWTH WILL UNDERMINE THE STOCK MARKET HE NOTES THE DIVIDEND YIELD HAS FALLEN BELOW 29 SIX TIMES IN THE PAST 30 YEARS IN EACH CASE THE S&P 500 HAS BEGUN A DECLINE OF MORE THAN 20 WITHIN ONE TO 11 MONTHS THE DIVIDEND YIELD FELL BELOW 29 IN NOVEMBER WITH A DIVIDEND YIELD OF 28 HE SAYS INVESTORS ARE ASSUMING ECONOMIC GROWTH OF 72 WHICH HE BELIEVES WON'T BE REALIZED MOREOVER AS THE ECONOMY WEAKENS HE PREDICTS THE DOLLAR WILL SOFTEN AND INFLATION WILL HEAT UP PRECIPITATING A BEAR MARKET TO PROTECT HIS 4 BILLION PORTFOLIO MR SCHROEDER HAS NO STOCK MARKET INVESTMENTS HE IS 97 INVESTED IN LONGTERM GOVERNMENT AND CORPORATE BONDS AND 3 IN VENTURE CAPITAL SO FAR THIS YEAR HIS PORTFOLIO HAS GAINED 45 IT WAS UP 9 IN 1992 THOUGH HE FULLY EXPECTS HIS SCENARIO TO PLAY OUT AS HE PREDICTS MR SCHROEDER CONCEDES NATURALLY WHEN YOU ARE BEING A CONTRARIAN YOU ALWAYS FEEL PRESSURE YOU HAVE PLENTY OF MOMENTS OF SECOND GUESSING HE SAYS HE SPENDS HALF HIS TIME ASSESSING THE ARGUMENTS OF THE BULLS I'M ALWAYS LOOKING AT ALL THE THINGS THAT MIGHT PROVE THIS TIME IS DIFFERENT AND THERE ARE SOME THERE'S A DYNAMIC GOVERNMENT PROGRAM A TREMENDOUS SURGE IN CONFIDENCE UNUSUALLY LOW INFLATION AND AN END TO THE SUPERPOWER WAR THREAT MR SCHROEDER SAYS BUT I BELIEVE THE WORLD IS LOOKING AT THE HALFFULL PORTION NOT THE HALFEMPTY PORTION OF THE GLASS 9304050001 930405 CLINTON PLEDGES RUSSIA AID PLAN OF 16 BILLION US OFFICIALS EXPECTING G7 PACKAGE DESCRIBE OFFER AS DOWN PAYMENT BY CARLA ANNE ROBBINS AND ADI IGNATIUS STAFF REPORTERS OF THE WALL STREET JOURNAL VANCOUVER BRITISH COLUMBIA PRESIDENT CLINTON'S OFFER TO RUSSIAN PRESIDENT BORIS YELTSIN OF A 16 BILLION AID PACKAGE UNVEILED AT THIS WEEKEND'S SUMMIT IS ONLY A DOWN PAYMENT TOP US OFFICIALS SAID THE REAL CASH AND POLITICAL PAYOFF THEY HOPE WILL COME IN 10 DAYS IN TOKYO WHEN MINISTERS FROM THE GROUP OF SEVEN INDUSTRIAL NATIONS MEET TO DEVELOP A MULTIBILLIONDOLLAR PLAN TO HELP MR YELTSIN AND HIS BELEAGUERED ECONOMIC REFORMS MR CLINTON OFFICIALS SAID WANTS TO PROPOSE ANOTHER US AID PACKAGE OF EQUAL OR GREATER VALUE THAN THE VANCOUVER PACKAGE IN TIME FOR THE TOKYO MEETING IT IS UNLIKELY HOWEVER THAT PROMISES OF WESTERN SUPPORT CAN TIP THE POLITICAL BALANCE DEFINITIVELY IN THE RUSSIAN PRESIDENT'S FAVOR AND CERTAINLY NOT BEFORE AN APRIL 25 REFERENDUM ON HIS RULE PRESIDENT CLINTON HIMSELF COULD FACE DOMESTIC TROUBLES WHEN HE TRIES TO PERSUADE CONGRESS TO ANTE UP MORE FUNDS FOR MR YELTSIN AT THE END OF THEIR TWO DAYS OF MEETINGS MR CLINTON DECLARED THAT THE US WOULD NOT STAND ON THE SIDELINES WHEN IT COMES TO DEMOCRACY IN RUSSIA OR IN ITS SUPPORT FOR MR YELTSIN THE RUSSIAN LEADER PRAISED WHAT HE DUBBED BILL CLINTON'S ECONOMIC PACKAGE AS PRAGMATIC SPECIFIC AND NITTY GRITTY THE VANCOUVER PACKAGE IS A POLITICAL FREEBIE FOR MR CLINTON SINCE ALL THE MONEY ALREADY HAS BEEN APPROPRIATED BY CONGRESS BUT NEVER SPENT THE PRESIDENT IS HAVING A DIFFICULT TIME GETTING HIS ECONOMIC STIMULUS PACKAGE THROUGH THE SENATE AND OFFICIALS ARE GEARING UP FOR AN EVEN TOUGHER FIGHT OVER HEALTHCARE REFORM RAISING DOUBTS ABOUT HOW MUCH MORE RUSSIAN AID HE CAN DELIVER IF THE US AND ITS WESTERN ALLIES FAIL TO LIVE UP TO THEIR AID PROMISES THE POLITICAL BACKLASH IN RUSSIA COULD WEAKEN MR YELTSIN FURTHER FOR ALL THE RISKS THE SUMMIT WAS AN APPARENT SUCCESS FOR BOTH LEADERS ON HIS FIRST FOREIGN OUTING MR CLINTON APPEARED COMFORTABLE DISCUSSING MATTERS OF HIGH DIPLOMACY WHILE STILL MANAGING TO PLUG HIS DOMESTIC ECONOMIC PROGRAMS MR YELTSIN GOT HIS CHANCE TO SHINE ON THE INTERNATIONAL STAGE AND ENOUGH CASH TO MAKE THE BLANDISHMENTS SOUND GENUINE THE TWO LEADERS QUICKLY CONNECTED SO MUCH SO THAT SEVERAL TIMES DURING THE LONG DISCUSSIONS MR YELTSIN PLAYFULLY NEEDLED THE PRESIDENT SAYING LET'S CUT THE DEAL NOW LET'S CUT THE DEAL NOW MR YELTSIN ALSO INVITED MR CLINTON TO VISIT MOSCOW AT HIS CONVENIENCE BUT THERE WERE SOME ROUGH SPOTS AS WELL THE TWO MEN DISAGREED ON THE NEED FOR TOUGHER SANCTIONS AGAINST SERBIA AND THE REMOVAL OF RUSSIAN TROOPS FROM THE BALTICS TWO AMERICAN PRIORITIES AND MR YELTSIN COMPLAINED BITTERLY ABOUT CONTINUED RESTRICTIONS ON HIGHTECH SALES TO RUSSIA AND THE JACKSONVANNICK AMENDMENT WHICH RESTRICTS RUSSIA'S ACCESS TO MOSTFAVOREDNATION TRADE STATUS THE LACK OF PROGRESS ON THOSE LAST TWO ISSUES WAS CLEARLY EMBARRASSING FOR MR YELTSIN WHO PROMISED ON HIS WAY TO VANCOUVER THAT BOTH WOULD BE RESOLVED AT THE SUMMIT AND AT THE CONCLUDING NEWS CONFERENCE MR YELTSIN SUGGESTED THAT THE ISSUES HAD ACTUALLY BEEN RESOLVED BUT MR CLINTON GENTLY DEMURRED SAYING ONLY THAT HE WOULD CONSULT WITH CONGRESS AND HOPED TO ESTABLISH A CLEARER AMERICAN POSITION WITHIN A FEW DAYS THE TRICKIEST MOMENT CAME DURING DINNER SATURDAY NIGHT WHEN PRESIDENT CLINTON ENTHUSIASTICALLY OUTLINED HIS PLAN FOR A JOINT COMMISSION ON SPACE AND ENERGY ISSUES WITH VICE PRESIDENT ALBERT GORE AS COCHAIRMAN MR YELTSIN BEGAN TO GLOWER AND FIDGET AND THE MORE MR CLINTON PRAISED THE VICE PRESIDENT'S SKILLS AND KNOWLEDGE THE MORE ANGRY MR YELTSIN APPEARED SUDDENLY MR YELTSIN REALIZED THAT PRESIDENT CLINTON WAS TALKING ABOUT PLACING MR GORE IN CHARGE NOT MR YELTSIN'S OWN VICE PRESIDENT AND POLITICAL FOE ALEKSANDR RUTSKOI AND HE BROKE INTO A BELLY LAUGH AND AGREED BEFORE HE ARRIVED IN VANCOUVER MR YELTSIN GOT A LONGAWAITED RESCHEDULING OF RUSSIA'S 80 BILLION FOREIGN DEBT A PREREQUISITE FOR FURTHER BORROWING ABOUT 15 BILLION IN DEBTSERVICE PAYMENTS DUE THIS YEAR WERE DEFERRED RUSSIA WILL ONLY HAVE TO PAY 2 BILLION TO FOREIGN GOVERNMENTS THIS YEAR AND IF PRIVATE CREDITORS CONCUR 15 BILLION TO OTHERS RESCHEDULING OF NEXT YEAR'S PAYMENTS WHICH ARE SUBSTANTIAL REQUIRES FURTHER TALK AND OTHER COUNTRIES INCLUDING CANADA AND BRITAIN USED THE SUMMIT TO ANTE UP NEW AID PACKAGES FOR RUSSIA AS WELL BUT WHILE THE OFFERS ARE WELLINTENDED MOST RUSSIANS ARE CYNICAL ABOUT AID PROMISES PARTICULARLY AFTER PRESIDENT BUSH'S ONLY PARTLY REALIZED PROMISE LAST YEAR OF 24 BILLION IN WESTERN AID MORE DAMAGING MR YELTSIN'S INCREASINGLY NUMEROUS HARDLINE OPPONENTS ARE SURE TO DENOUNCE THE PACKAGE AS DEGRADING TO RUSSIA'S NATIONAL PRIDE AND A FURTHER ATTEMPT TO IMPOSE FOREIGN VALUES ON RUSSIA RUSLAN KHASBULATOV CHAIRMAN OF RUSSIA'S PARLIAMENT AND MR YELTSIN'S POLITICAL NEMESIS BITTERLY CRITICIZED THE WEST FOR SIDING WITH MR YELTSIN HE TOLD DIPLOMATS IN MOSCOW IF BLOOD IS SHED AS A RESULT OF THIS A SHARE OF RESPONSIBILITY WILL REST ON WESTERN COUNTRIES DESPITE SUCH CRITICISM THE PACKAGE COULD HAVE SEVERAL POSITIVE EFFECTS EVEN ON A MODEST SCALE SOME OF THE PROGRAMS WILL BOOST RUSSIAN ECONOMIC AND POLITICAL REFORM EFFORTS MORE IMMEDIATELY US OFFICIALS ARE HOPING THE PACKAGE WILL BE A MODEL AND A CATALYST FOR MAJOR AID PROGRAMS FROM OTHER WESTERN DONORS MR CLINTON HAS SPOKEN WITH G7 LEADERS IN RECENT DAYS TO LOBBY FOR AID FOR RUSSIA THE INTERNATIONAL MONETARY FUND SAID FRIDAY IT IS CONSIDERING A NEW BORROWING PROGRAM WITH CONDITIONS MORE LENIENT THAN FOR CONVENTIONAL IMF LOANS FOR RUSSIA AND OTHER NATIONS BUILDING CAPITALIST MARKETS AND THE PRESIDENT SUGGESTED AT THE SUMMIT THAT HE WOULD PRESS FOR EVEN MORE LENIENT LENDING TO RUSSIA NEARLY 900 MILLION OF THE VANCOUVER PACKAGE WILL GO TOWARD FOOD GRANTS AND CREDITS WITH GENEROUS TERMS A BOON TO AMERICAN FARMERS IN ADDITION THE PACKAGE COMMITS 148 MILLION TO DEVELOP THE RUSSIAN PRIVATE SECTOR INCLUDING A 50 MILLION JOINT RUSSIANAMERICAN ENTERPRISE FUND RUN BY TOP US BUSINESSMEN AND FINANCIERS ANOTHER NEARLY 250 MILLION IN LOANS CREDITS AND GUARANTEES WILL GO TO ENCOURAGE US TRADE AND FOREIGN INVESTMENT TWO AMERICAN COMPANIES WILL PARTICULARLY BENEFIT CONOCO INC A HOUSTON SUBSIDIARY OF DU PONT CO WILMINGTON DEL WILL GET 150 MILLION IN LOAN GUARANTEES AND INSURANCE FOR ITS SIBERIAN OIL EXPLORATIONS AND THE EXPORTIMPORT BANK WILL PROVIDE AN 82 MILLION LOAN TO FINANCE THE SALE OF PEORIA ILLBASED CATERPILLAR INC OIL AND GAS PIPELINE EQUIPMENT OFFICIALS SAID THEY HOPED THE EXIM BANK WILL BE READY TO APPROVE ANOTHER 2 BILLION IN ENERGYRELATED LOANS BY THE TOKYO SUMMIT AND 48 MILLION WILL BE SPENT ON DEMOCRATIZATION PROGRAMS INCLUDING A DEMOCRACY SUMMER WHICH WILL BRING 3000 RUSSIAN STUDENTS BUSINESS PEOPLE AND OFFICIALS TO THE US THIS YEAR ON STUDY PROGRAMS PRESIDENT CLINTON ACCORDING TO AIDES PROMISED THE RUSSIAN LEADER THAT HE WOULD DO HIS BEST TO COME UP WITH A BOLD PROGRAM BY THE TOKYO MEETING AND PROMISED TO CONTINUE TO LOBBY WESTERN ALLIES TO DO THE SAME BUT THE PRESIDENT ALSO EXPLAINED THE POLITICAL CONSTRAINTS SAID A TOP AIDE WE OBVIOUSLY THINK WE CAN PULL IT OFF OR WE WOULDN'T EVEN BE TRYING MICHAEL K FRISBY IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9304020190 930402 WHO'S NEWS EW SCRIPPS CO EW SCRIPPS CO CINCINNATI FRANK GARDNER A SENIOR VICE PRESIDENT WITH NEWS CORP'S FOX NETWORK WAS APPOINTED SENIOR VICE PRESIDENT IN CHARGE OF THIS MEDIA CONCERN'S TELEVISION GROUP MR GARDNER 50 YEARS OLD SUCCEEDS RICHARD J JANSSEN 58 WHO STEPPED DOWN LAST YEAR MR GARDNER ALSO BECOMES AN EXECUTIVE VICE PRESIDENT OF THE COMPANY'S SCRIPPS HOWARD BROADCASTING CO UNIT 9304020188 930402 TECHNOLOGY & MEDICINE AT&T OFFERS SERVICES FACILITATING THE USE OF INTERNET NETWORK NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT NOW HAS AVAILABLE NEW ONLINE DIRECTORY AND DATABASE SERVICES THAT MAKE IT EASIER FOR USERS OF THE INTERNET DATA NETWORK TO FIND INFORMATION THE AT&TPROVIDED SERVICES INCLUDE THE DIRECTORY OF DIRECTORIES A SERVICE SIMILAR TO LISTINGS IN TELEPHONEBOOK WHITE AND YELLOW PAGES AND DATABASE SERVICES WHICH CAN STORE DATA AVAILABLE TO ALL INTERNET USERS INTERNET IS A FARFLUNG WEB OF PRIVATE AND PUBLIC DATA NETWORKS THE DIRECTORY OF DIRECTORIES IS ACCESSIBLE TO ALL INTERNET USERS AND IS FREE OF CHARGE AT&T SAID PEOPLE AND ORGANIZATIONS ALSO CAN PLACE THEIR LISTINGS IN THE ELECTRONIC DIRECTORY FREE OF CHARGE UP TO 15 LINES AN AT&T SPOKESWOMAN SAID FOR EXPANDED LISTINGS A 100 MONTHLY FEE IS CHARGED SHE SAID FOR INCLUSION IN ITS DATABASE SERVICES AT&T CHARGES DATABASE PROVIDERS ACCORDING TO SIZE OF DATABASE A DATABASE OF AS MUCH AS FIVE MEGABYTES WOULD COST 30 A MONTH THE AT&T SPOKESWOMAN SAID AND A 50MEGABYTE DATABASE WOULD COST 200 A MONTH CHARGES FOR LARGER DATABASES ARE INDIVIDUALLY NEGOTIATED SHE SAID THE DIRECTORY OF DIRECTORIES IS DESIGNED TO LET NOVICE INTERNET USERS OBTAIN REFERENCES TO INFORMATION AND RESOURCES ASSOCIATED WITH INTERNET SUCH AS COMPUTING CENTERS NETWORK PROVIDERS INFORMATION SERVERS INDEXES OF WHITE AND YELLOW PAGES DIRECTORIES LIBRARY CATALOGS DATA AND SOFTWARE ARCHIVES AND TRAINING SERVICES 9304020187 930402 SOUTHERN UNION COMPLETES SALE AUSTIN TEXAS SOUTHERN UNION CO SAID IT COMPLETED THE SALE OF ALL OF ITS OIL AND GAS LEASE INTERESTS AND RELATED PRODUCTION FOR 22 MILLION THE PURCHASERS WERE CERTAIN LIMITED PARTNERSHIPS AFFILIATED WITH MERIT ENERGY CO DALLAS SOUTHERN UNION IS A NATURALGAS DISTRIBUTION CONCERN 9304020186 930402 INDUSTRY FOCUS HOSPITALS ARE RETURNING TO REUSABLE SURGICAL SUPPLIES WASTE DISPOSAL COSTS HAVE MANY MEDICAL FACILITIES RETHINKING THROWAWAYS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL AT MEDICAL CITY HOSPITAL IN DALLAS SURGEONS IN THE OPERATING ROOM DIDN'T JUST HEAL PATIENTS LAST SUMMER THEY ALSO GENERATED 3000 POUNDS OF MEDICAL WASTE A DAY MOSTLY DISPOSABLE GOWNS TOWELS SURGICAL DRAPES AND PLASTIC TUBING THAT ANNOYED CALEE TRAVIS THE HOSPITAL'S OPERATING ROOM SUPERVISOR SOARING COSTS FOR MEDICALWASTE DISPOSAL WERE FORCING THE HOSPITAL TO PAY 750 A DAY JUST TO HAVE ITS OPERATINGROOM TRASH HAULED AWAY A LOT OF THAT WASN'T REALLY DIRTY MATERIAL MS TRAVIS SAYS WITH CLEANING AND STERILIZATION IT COULD BE REUSABLE NOW MEDICAL CITY LIKE A LOT OF OTHER HOSPITALS IS OUTFITTING ITS SURGEONS WITH REUSABLE GOWNS COSTS PER GOWN USE ARE COMPETITIVE WITH THE DISPOSABLES USED BEFORE AND THE OPERATING ROOM'S DAILY REFUSE PILE HAS DIMINISHED A BIT TOO NATIONWIDE INTEREST IN REUSABLE SURGICAL SUPPLIES IS ON THE RISE SENDING RIPPLES THROUGHOUT THE HOSPITALSUPPLY INDUSTRY MAKERS OF REUSABLE SUPPLIES REPORT THAT ORDERS ARE SURGING MAKERS OF DISPOSABLES ARE CUTTING PRICES OR TAKING OTHER STEPS TO DEFEND MARKET SHARE LESS THAN THREE DECADES AGO MOST SURGICAL LINEN TENDED TO BE REUSABLE BUT DISPOSABLES GAINED A COMMANDING MARKET SHARE IN THE 1970S AND 1980S LARGELY BECAUSE THEY WERE MORE CONVENIENT AND AT THE TIME DIDN'T INVOLVE EXTRA COST NOW THE PENDULUM IS SWINGING BACK FROM DISPOSABLES SAYS JOANNE SAULTER HEAD OF SURGICAL SUPPLIES PURCHASING AT CHICAGO'S COOK COUNTY HOSPITAL ESTIMATES ARE THAT ABOUT 80 OF SURGICAL GOWNS AND LINEN ARE DISPOSABLE WITH REUSABLES HOLDING A 20 SHARE BUT AT HOSPITALS SUCH AS COOK COUNTY REUSABLES ACCOUNT FOR AS MUCH AS 95 OF SUPPLIES WHILE MOST OF THE INTEREST IN REUSABLES INVOLVES LOWCOST ITEMS LIKE GOWNS AND SURGICAL DRAPING SOME HIGHPRICED SURGICAL INSTRUMENTS ALSO ARE COMING UNDER NEW SCRUTINY FROM HOSPITALS AFTER YEARS OF BUYING DISPOSABLE INSTRUMENTS BECAUSE OF THEIR GREATER CONVENIENCE SOME HOSPITALS ARE SWITCHING TO REUSABLE ALTERNATIVES TO HOLD DOWN COSTS OUR CRUCIAL QUESTION IS HOW DO WE DELIVER MORE CARE AT THE SAME COST SAYS ROBERT PEARL ASSISTANT PHYSICIAN IN CHIEF AT KAISER PERMANENTE MEDICAL CENTER IN SANTA CLARA CALIF AMONG THE STEPS KAISER HAS TAKEN IN THE PAST YEAR DR PEARL SAYS IS TO START BUYING REUSABLE EQUIPMENT FOR GALLBLADDER SURGERY FROM BAXTER INTERNATIONAL INC INSTEAD OF DISPOSABLE KITS FROM MARKET LEADER US SURGICAL CORP AMONG THE HOSPITALSUPPLY COMPANIES TRYING TO CAPITALIZE ON THE MOVE TOWARD REUSABLES ARE AMSCO INTERNATIONAL INC MEDLINE INDUSTRIES INC AND THE REPAK UNIT OF STANDARD TEXTILE CO ALL THREE MAKE REUSABLE GOWNS AND SURGICALROOM LINEN AT MEDLINE SALES OF REUSABLE GOWNS JUMPED 180 LAST YEAR SAYS MARK WHITAKER PRESIDENT OF THE MUNDELEIN ILL COMPANY'S OPERATINGROOM SUPPLIES UNIT HE WON'T DISCLOSE EXACT SALES FIGURES AND SAYS REUSABLE GOWNS REMAIN A SMALL PART OF THE COMPANY'S OVERALL 400 MILLION A YEAR IN SALES BUT REUSABLE GOWN SALES ARE CONTINUING TO RISE THIS YEAR HE SAYS AMSCO JUMPED INTO THE REUSABLE SURGICAL SUPPLIES MARKET LAST YEAR SETTING UP A TAMPA FLA CENTER AT WHICH IT CLEANS AND STERILIZES REUSABLE GOWNS THAT IT RENTS TO HOSPITALS THE COMPANY HAS SAID IT WANTS TO OPEN 30 SUCH CENTERS NATIONWIDE IF THAT PLAN IS CARRIED OUT SAYS JP MORGAN SECURITIES INC ANALYST AJ RICE IT COULD LEAD TO A DOUBLING OF AMSCO'S APPROXIMATELY 500 MILLION IN ANNUAL REVENUE HOSPITAL MANAGERS SAY THEY'RE GENERALLY PLEASED WITH NEW BREATHABLE FABRICS BEING USED ON SURGICAL GOWNS AND LINEN FABRICS SUCH AS GORETEX AND OPTIGUARD PROVIDE GREATER COMFORT WHILE STILL BEING IMPERVIOUS TO BLOOD AND OTHER FLUIDS THEY SAY MEDICAL CITY'S MS TRAVIS SAYS THAT ONE SURGEON WHO SWEATS PROFUSELY CAN WEAR THE SAME REUSABLE GORETEX GOWN THROUGHOUT A LONG OPERATION HE USUALLY GOES THROUGH THREE DISPOSABLE GOWNS A HIGHLY CONTENTIOUS AREA THOUGH IS THE COST COMPARISON BETWEEN DISPOSABLE AND REUSABLE MATERIALS MEDLINE CALCULATES THAT ITS REUSABLE GOWNS COST ABOUT 3 FOR EACH OF THEIR 80 LIFETIME USES INCLUDING CLEANING STERILIZATION AND A PRORATA SHARE OF THE 80 INITIAL PURCHASE PRICE THAT'S NOTICEABLY CHEAPER THAN THE 4 PER USE COST OF DISPOSABLES THE COMPANY'S MR WHITAKER ASSERTS BUT BAXTER WHICH DOMINATES THE DISPOSABLE MARKET AND ALSO MAKES SOME REUSABLE SUPPLIES DISPUTES THOSE FIGURES IT SAYS ITS AVERAGE DISPOSABLE GOWN COSTS 310 AS BAXTER CALCULATES IT REUSABLE GOWNS TYPICALLY RUN 360 PER USE INCLUDING ALL ASSOCIATED CLEANING AND REPACKAGING COSTS IN MANY CIRCUMSTANCES DISPOSABLES ARE CHEAPER SAYS JEFF CUTLER A MANAGER IN BAXTER'S REUSABLE DIVISION OFTEN HE POINTS OUT REUSABLE SUPPLIES DON'T LAST THE FULL NUMBER OF TIMES EXPECTED BECAUSE THEY GET LOST OR DAMAGED STILL HE SAYS BAXTER IS SEEING GROWING HOSPITAL INTEREST IN REUSABLE SUPPLIES RECYCLING IS CATCHING ON FOR SOME SURGICAL INSTRUMENTS TOO PARTICULARLY THE LONG NARROW TUBES KNOWN AS LAPAROSCOPIC DEVICES THESE DEVICES ARE USED IN GALLBLADDER REMOVAL HYSTERECTOMIES AND OTHER TYPES OF SPECIALIZED SURGERY KAISER PERMANENTE'S DR PEARL CALCULATES THAT SOME RECYCLABLE LAPAROSCOPIC INSTRUMENTS ARE PAYING THEIR WAY AFTER JUST FOUR USES STARTING LAST YEAR KAISER BEGAN BUYING REUSABLE BAXTER EQUIPMENT FOR ALL BUT THE CUTTING TIP OR TROCAR ON ITS GALLBLADDER KITS THAT MEANS PAYING 809 FOR A REUSABLE BASE AND 210 FOR EACH DISPOSABLE TROCAR DR PEARL SAYS INSTEAD OF PAYING 40290 EACH TIME FOR A DISPOSABLE KIT FROM US SURGICAL'S AUTO SUTURE UNIT SUCH PRICE COMPARISONS ARE UNFAIR REPLIES US SURGICAL'S CHAIRMAN LEON HIRSCH BY HIS COMPANY'S CALCULATIONS WASHING AND STERILIZATION COSTS ASSOCIATED WITH REUSABLES PUSH UP THEIR OVERALL COSTS TO THE POINT THAT DISPOSABLES MAY BE CHEAPER MR HIRSCH ALSO ARGUES THAT THE QUALITY OF REUSABLE EQUIPMENT DEPENDS ON THE RELIABILITY OF CLEANSING AND STERILIZATION PROCEDURES PEOPLE WHO HANDLE INSTRUMENTS THEMSELVES KNOW WHAT RISKS ARE INVOLVED KAISER'S DR PEARL CONCEDES THAT SURGEONS TEND TO LIKE DISPOSABLES THEY'RE CONVENIENT THEY'RE ALWAYS NEW AND FRESH AND THEY'RE ALWAYS ON THE SHELF BUT HE SAYS THAT KAISER FINDS ITS ALLINCLUSIVE COSTS FOR REUSABLES ARE LOWER THAN FOR DISPOSABLES AND THAT ITS OWN STERILIZATION EFFORTS ARE RELIABLE ENOUGH TO MEET PHYSICIANS' CONCERNS AT OTHER HOSPITALS TOO ADVOCATES OF REUSABLE EQUIPMENT FIND THEY ARE GETTING A MORE SYMPATHETIC HEARING OUR SURGEONS ARE MUCH MORE COSTCONSCIOUS THAN THEY USED TO BE SAYS MARTY FORDHAM THE PATIENT CARE DIRECTOR FOR SURGICAL SERVICES AT MILWAUKEE'S FROEDTERT MEMORIAL LUTHERAN HOSPITAL THEY REALIZE PATIENTS AREN'T TOO HAPPY WITH COSTS MR FORDHAM ADDS AND THEY'RE LOOKING MUCH MORE CLOSELY AT WAYS TO REDUCE COSTS IT'S VERY REFRESHING 9304020185 930402 STERLING SOFTWARE IN PACT TO PURCHASE SYSTEMS CENTER INC DALLAS STERLING SOFTWARE INC A DEVELOPER OF CORPORATE SOFTWARE PROGRAMS SAID IT PLANS TO BUY SYSTEMS CENTER INC A RESTON VA SOFTWARE CONCERN FOR 185 MILLION IN STOCK THE ACQUISITION THE BIGGEST EVER FOR STERLING WILL BOOST THE COMPANY'S REVENUE BY ABOUT 50 AND BROADEN ITS LINE OF UTILITY SOFTWARE SYSTEMS FOR MAINFRAMES AND MINICOMPUTERS STERLING SPOKESWOMAN ANNE VAHALA SAID THE SYSTEMS CENTER PURCHASE IS THE FIRST OF A SERIES OF ACQUISITIONS PLANNED FOR STERLING THE COMPANY LAST YEAR RAISED 115 MILLION IN AN OFFERING OF CONVERTIBLE SUBORDINATED DEBENTURES MS VAHALA SAID STERLING IS PARTICULARLY INTERESTED IN EXPANDING ITS ELECTRONIC DATA INTERCHANGE BUSINESS USED BY COMPANIES TO SWAP SUCH DATA AS INVOICES AND PURCHASE ORDERS OVER COMPUTER NETWORKS THEY STILL HAVE A WAR CHEST SAID LOUIS GIGLIO A COMPUTER INDUSTRY ANALYST AT BEAR STEARNS & CO IN NEW YORK THERE ARE AN AWFUL LOT OF SMALL COMPANIES OUT THERE THAT WOULD MAKE SENSE FOR THEM TO PICK UP STERLING SAID ROBERT E COOK SYSTEMS CENTER'S CHAIRMAN WILL JOIN THE STERLING BOARD THE COMPANY WOULDN'T SAY WHETHER SYSTEMS CENTER'S RESTON OFFICE WILL REMAIN OPEN OR WHETHER ITS 900 EMPLOYEES WILL BE OFFERED JOBS AT STERLING FOR THE FISCAL YEAR THAT ENDED SEPT 30 STERLING REPORTED NET INCOME OF 138 MILLION OR 119 A SHARE ON REVENUE OF 2593 MILLION SYSTEMS CENTER'S 1992 REVENUE WAS 131 MILLION AND THE COMPANY EARNED 58 MILLION OR 45 CENTS A SHARE IN NEW YORK STOCK EXCHANGE TRADING STERLING'S SHARES CLOSED DOWN 50 CENTS TO 23375 SYSTEMS CENTER SHARES ROSE 2375 TO 11875 IN BIG BOARD TRADING 9304020184 930402 INTERNATIONAL EAST GERMAN WORKERS STAGE PAY PROTESTS BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN MORE THAN 90000 EASTERN GERMAN ENGINEERING ELECTRONICS AND STEEL WORKERS WALKED OFF THE JOB FOR SEVERAL HOURS YESTERDAY TO PROTEST CANCELED PAY INCREASES THE WARNING STRIKES ADDED UP TO GERMANY'S LARGEST LABOR ACTION SINCE UNIFICATION AND THE STRONGEST SIGNAL YET OF EASTERN GERMANS' DISSATISFACTION WITH THEIR ECONOMIC STATUS THE WALKOUTS WHICH LASTED FROM ONE TO FIVE HOURS AND AFFECTED MORE THAN 200 COMPANIES IN THE REGION WERE CALLED BY IG METALL GERMANY'S BIGGEST UNION THE PROTESTS ARE SCHEDULED TO CONTINUE TODAY AND NEXT WEEK THEY WERE IN RESPONSE TO A DECISION BY EMPLOYERS TO RAISE WAGES 9 INSTEAD OF THE 26 WRITTEN INTO COLLECTIVE BARGAINING AGREEMENTS IN 1991 IN THE ENGINEERING AND ELECTRONICS SECTOR AND 21 IN THE STEEL INDUSTRY THE HIGHER RAISES WERE PART OF A PAYINCREASE PLAN TO BE IMPLEMENTED IN STAGES TO BRING EASTERNERS UP TO THE WAGE LEVELS OF WESTERN WORKERS BY 1994 AT THE HIGHER LEVEL THIS YEAR'S RAISES WOULD HAVE BROUGHT THE WORKERS TO ABOUT 80 OF WESTERN WAGES BUT THE EMPLOYERS' RAISE ONLY MATCHES THE EASTERN INFLATION RATE THUS LEAVING REAL INCOME FLAT IT WAS THE FIRST TIME SINCE WORLD WAR II THAT GERMAN EMPLOYERS HAVE BROKEN A COLLECTIVE BARGAINING AGREEMENT JOCHEN KLETZIN AN IG METALL OFFICIAL CALLED THE STRIKES A CLEAR POLITICAL DEMONSTRATION FOR UNION CONTRACT RIGHTS THE EMPLOYERS' ASSOCIATION HAS ARGUED THAT BECAUSE OF GERMANY'S RECESSION AND LOW PRODUCTIVITY IN THE EAST PAYING THE RAISES WOULD BANKRUPT STRUGGLING COMPANIES AND CAUSE MORE JOB LOSSES THE GROUP PEGS PRODUCTIVITY AMONG EASTERN FIRMS AT 40 OF THE WESTERN GERMAN RATE A DISCREPANCY THAT HAS CHANGED LITTLE SINCE UNIFICATION OFFICIALS AT IG METALL AND OTHER UNIONS FEAR THIS MIGHT BE ONLY THE FIRST MOVE IN A CAMPAIGN TO UNDERMINE GERMANY'S POWERFUL ORGANIZED LABOR MOVEMENT AS A RESULT THE GERMAN FEDERATION OF UNIONS HAS SET NATIONWIDE PROTESTS FOR APRIL 24 IG METALL WITH 350000 WORKING MEMBERS IN EASTERN GERMANY HAS SAID THAT BEFORE IT WOULD COMPROMISE ON THE ISSUE EMPLOYERS MUST ACKNOWLEDGE THAT THE EXISTING CONTRACT IS BINDING THE CONFLICT IS ALSO SHAPING INTO A CRITICAL TRIAL OF UNION VIABILITY IN THE EAST WHERE WORKER LOYALTY HAS BEEN SHAKEN BY REPEATED MASS LAYOFFS ACHIM SCHMIDT A MECHANIC AT AN AEG AG TRANFORMER PLANT IN BERLIN WHO PARTICIPATED IN A WARNING STRIKE SAYS WE HAD A UNION BEFORE DURING COMMUNIST RULE BUT IT WAS CORRUPTED BY THE STATE SO THERE IS A CERTAIN SUSPICION ABOUT UNIONS CONSEQUENTLY HE ADDS THIS IS A TEST WHEN THEY DON'T GET A GOOD RESULT LOTS OF UNION MEMBERS ARE GOING TO WALK 9304020183 930402 US IS STUDYING WAYS TO HELP RUSSIA DISPOSE OF AGING NUCLEAR SUBMARINES BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS STUDYING THE POSSIBILITY OF HELPING RUSSIA BUILD A GIANT SUBMARINE JUNKYARD AS A WAY TO EASE A NEARCRISIS SITUATION THAT APPEARS TO BE DEVELOPING IN RUSSIA'S AGING NUCLEAR SUBMARINE FLEET RUSSIA HAS A BACKLOG OF 100 NUCLEAR SUBMARINES TIED UP AT SEA AWAITING FINAL DISPOSAL ACCORDING TO THE RUSSIAN NAVY MANY OF THE DECREPIT SUBS STILL HAVE SAILORS LIVING ON THEM AND NUCLEAR FUEL IN THEIR REACTORS BECAUSE OF AN ACUTE HOUSING SHORTAGE AND A LACK OF FACILITIES TO REMOVE AND STORE THE HIGHLY RADIOACTIVE FUEL THE US IS CONSIDERING VARIOUS WAYS TO ALLEVIATE THE SITUATION ACCORDING TO US OFFICIALS ONE PLAN BEING EXAMINED IN VICE PRESIDENT ALBERT GORE'S OFFICE WOULD PROVIDE US EQUIPMENT TECHNICAL ASSISTANCE AND LABOR TO CONVERT A SCRAP YARD AT MURMANSK INTO A SUBMARINE JUNKYARD THAT COULD LITERALLY CUT INTO THE BACKLOG THE PENTAGON IS STUDYING A RELATED PLAN TO PROVIDE SPECIAL MACHINERY DESIGNED TO SLICE APART RUSSIA'S BOOMERS OR NUCLEARPOWERED MISSILE SUBMARINES SOME OF WHICH HAVE TO BE SCRAPPED BECAUSE OF ARMS CONTROL TREATIES NO FINAL DECISIONS HAVE BEEN MADE ON EITHER PLAN ACCORDING TO US OFFICIALS WHO SAY THEY COULD BE FINANCED FROM MONEY REMAINING FROM AN 800 MILLION AID PACKAGE ALREADY APPROVED BY CONGRESS AND A FURTHER AID PROPOSAL OF SOME 1 BILLION BEING PREPARED BY PRESIDENT CLINTON FOR THIS WEEKEND'S SUMMIT MEETING WITH RUSSIAN PRESIDENT BORIS YELTSIN A COMMISSION APPOINTED BY MR YELTSIN HEIGHTENED CONCERN OVER THE SUBS LAST WEEK WHEN IT REPORTED THAT THE RUSSIAN NAVY IS FACING A CRITICAL SITUATION THAT WILL IMPAIR THE SAFETY OF ITS OPERATING SUB FLEET BECAUSE OF THE INABILITY TO REFUEL THE SUBS THE REPORT SAID THAT RUSSIA'S NORTHERN AND PACIFIC SUB FLEETS REQUIRE THE FUEL FOR 20 REACTORS TO BE REPLACED THIS YEAR HOWEVER THERE IS ONLY ROOM TO PUT THREE REACTOR LOADS OF SPENT FUEL AT ONSHORE NUCLEAR STORAGE SITES MEANWHILE THE OLD FUEL MUST BE STORED AT SEA EITHER ON THE SUBS OR AT SPECIAL FLOATING TECHNICAL BASES SHIPS THAT ARE USED TO REFUEL SUBS AT SEA JOSH HANDLER AN ANALYST FOR GREENPEACE AN ENVIRONMENTAL GROUP THAT TRIGGERED THE FORMATION OF MR YELTSIN'S COMMISSION SAYS THE REFUELING PROBLEM IS COMPOUNDED BECAUSE THE SPENT FUEL STORAGE COMPARTMENTS ON THE SHIPS ARE FULL AND THERE APPEARS TO BE NOWHERE TO UNLOAD THEM TO TAKE ON FRESH FUEL FOR THE OPERATING SUB FLEET MR HANDLER WHO RECENTLY RETURNED FROM A TOUR OF RUSSIAN SUB FACILITIES NEAR MURMANSK SAYS ONE OF THE FUELCRAMMED FLOATING BASES CALLED THE LEPSE APPEARS TO BE LEAKING HE SAYS HE SAW RUSSIAN WORKERS PUMPING CEMENT INTO IT THE REPORT OF THE RUSSIAN COMMISSION SAYS RADIATION LEVELS ON BOARD THE LEPSE HAVE RISEN TO THE POINT WHERE IT IS IN AN EMERGENCY CONDITION NICOLAS G REISINI IS A DIRECTOR OF NEWCON INC A NEW JERSEY COMPANY THAT IS WORKING ON THE PROBLEM IN PARTNERSHIP WITH A/O COMPASS CORP A COMPANY FORMED BY OFFICIALS OF THE RUSSIAN NAVY HE SAYS THE RUSSIANS WILL ADD ANOTHER 80 NUCLEAR SUBMARINES TO THE BACKLOG OF OBSOLESCENT SHIPS BY THE YEAR 2000 AT THE MOMENT THEIR PROBLEM IS THEY DON'T KNOW HOW TO GET THE NUCLEAR FUEL OFF SAYS MR REISINI HE SAID THE PROPOSAL THAT THE PARTNERSHIP HAS SUBMITTED TO THE CLINTON ADMINISTRATION REQUESTS 100 MILLION TO DEVELOP THE MURMANSK SCRAP YARD FOR FUEL REMOVAL AND DISMANTLEMENT AND ANOTHER 150 MILLION TO BEGIN BUILDING USSTYLE PREFABRICATED HOUSING FOR RETIRING RUSSIAN NAVAL OFFICERS MR REISINI SAID RUSSIAN NAVY OFFICIALS BELIEVE THEY EVENTUALLY WILL BE ABLE TO PAY FOR THE HOUSING BY SELLING SCRAP FROM THE SUBMARINES WHICH CONTAIN A CONSIDERABLE AMOUNT OF VALUABLE METALS INCLUDING COPPER TITANIUM AND SPECIAL HIGHSTRENGTH STEELS BEFORE THE 1980S THE FORMER SOVIET NAVY HANDLED NUCLEAR SUBMARINE DISPOSAL BY SIMPLY DUMPING SOME OF ITS REACTORS INTO THE SEA MR YELTSIN'S COMMISSION PRESENTED THE FIRST OFFICIAL ACCOUNT OF THE DUMPING 18 NUCLEAR REACTORS WERE THROWN OVERBOARD SIXTEEN SIT ON THE BOTTOM OF THE KARA SEA IN THE ARCTIC AND OF THESE SIX STILL CONTAIN NUCLEAR FUEL NUCLEAR FUEL THAT HAS BEEN BURNED IN A NUCLEAR REACTOR CONTAINS SOME OF THE MOST TOXIC MATERIALS KNOWN TO MAN INCLUDING CESIUM AND STRONTIUM WHICH REMAIN RADIOACTIVE FOR GENERATIONS NO ONE KNOWS WHAT THEIR LONGTERM EFFECTS WILL BE AS THE CORROSIVE EFFECTS OF SEA WATER SLOWLY RELEASES THEM INTO THE ENVIRONMENT 9304020182 930402 MANAGING BY TIMOTHY D SCHELLHARDT JUST A FEW YEARS AGO SOME THINGS ON A JOB RESUME FLASHED WARNING SIGNALS TO A PERSONNEL DIRECTOR OR HEADHUNTER A LONG GAP BETWEEN JOBS A LATERAL CAREER MOVE A CONSULTANCY NOT ANYMORE IN TODAY'S CROWDED JOB MARKET WHAT WAS ONCE A DANGER SIGN MAY BE AN ADVANTAGE BECAUSE OF THE RECESSION AND THE SHRINKING OF MIDDLE MANAGEMENT RESUMES OF MANY MORE JOB SEEKERS INDICATE LENGTHY LAPSES IN EMPLOYMENT TODAY IT ISN'T UNUSUAL FOR 100000AYEAR MANAGERS TO BE OUT ON THE BRICKS FOR A YEAR PEOPLE'S CAREERS AREN'T AS TIDY AS THEY USED TO BE SAYS CHRISTOPHER POLSON A MINNEAPOLIS HEADHUNTER THERE'S A LOT LESS PREJUDGING I'M MORE PREPARED TO SEE GAPS NOW TO LISTEN TO THE STORY ABOUT WHAT HAPPENED OF COURSE HE ADDS IF IT'S BEEN A PERIOD OF YEARS BETWEEN JOBS THEN I BEGIN TO QUESTION RESUME SCREENERS SAY A CAREER PLATEAU AND EVEN AN OCCASIONAL HALFSTEP BACKWARD WHICH ONCE SUGGESTED A MANAGER LACKED EXECUTIVE POTENTIAL NOW MAY SHOW AN APPLICANT IS ADAPTABLE TO CHANGING CORPORATE ENVIRONMENTS LEANER ORGANIZATIONS HAVE MADE LATERAL MOVES MUCH MORE COMMON STILL SAYS CAREER CONSULTANT MARILYN MOATS KENNEDY WILMETTE ILL IF YOU HAVE TWO OR THREE LATERAL MOVES ON YOUR RESUME THEN A NEW EMPLOYER WILL OFFER YOU ANOTHER ONE GETTING A LEAP UP IS WHAT'S TOUGH A LONG STINT AT THE SAME EMPLOYER CAN ALSO BE AN ADVANTAGE ESPECIALLY IF THE COMPANY HAS BEEN THROUGH TURMOIL AND THE APPLICANT HAS SURVIVED IT SAYS HERE'S SOMEONE WHO HAS BEEN ADAPTABLE' MS KENNEDY SAYS BUT SHE RECOMMMENDS THAT ON THEIR RESUMES SUCH VETERANS DIVIDE UP THE LENGTHY DUTY INTO SEGMENTS AND TALK ABOUT THEIR DIFFERENT ASSIGNMENTS AND RESULTS CONSULTANCIES ON A RESUME AREN'T THE RED FLAG THEY ONCE WERE BUT CAREER EXPERTS WARN AGAINST USING THEM TO DISGUISE JOBLESS PERIODS PROSPECTIVE EMPLOYERS WILL ASK FOR NAMES OF CLIENTS WHAT AN APPLICANT DID FOR THEM AND HOW MUCH HE OR SHE WAS PAID SHOULD SALESPEOPLE BE CERTIFIED A GROWING MOVEMENT WITHIN THE INDUSTRY IS PROMOTING THAT IDEA MANY SALES EXECUTIVES SAY A NATIONAL CERTIFICATION PROGRAM WOULD BRING THE INDUSTRY MORE PROFESSIONALISM THEY NOTE THAT ACCOUNTANTS AND FINANCIAL PLANNERS AMONG OTHERS ALREADY HAVE A CERTIFICATION PROCESS IT WOULD HELP THE IMAGE OF THE PROFESSION HELP RECRUITING AND DECREASE TURNOVER JAMES PANZL GENERAL ELECTRIC'S SALES TRAINING DIRECTOR SAID AT A RECENT CONFERENCE SPONSORED BY THE NATIONAL SOCIETY OF SALES TRAINING EXECUTIVES AND PERSONAL SELLING POWER MAGAZINE SALES & MARKETING EXECUTIVES OF GREATER NEW YORK A TRADE GROUP LAST MONTH APPROVED A NATIONAL SALES CERTIFICATION PROGRAM THE DECISION CAME AT A MEETING THAT INCLUDED SALES EXECUTIVES FROM AROUND THE COUNTRY AND FROM SUCH COMPANIES AS AVON PRODUCTS DIGITAL EQUIPMENT AND SONY THE PROGRAM WILL BEGIN IN JULY AND COST 500000 TO DEVELOP THE GROUP IS PUTTING TOGETHER FOUR CERTIFICATION CURRICULA INVOLVING 96 HOURS OF CLASSROOM TIME EACH THAT WOULD LEAD TO A CERTIFIED SALES PROFESSIONAL DESIGNATION THE PROGRAMS WILL BE OFFERED AT COLLEGES AROUND THE US AT A COST OF 3500 TO 5500 ENROLLEES WHO MUST HAVE A COLLEGE DEGREE AND AT LEAST TWO YEARS OF SALES EXPERIENCE WILL THEN PAY 395 TO TAKE A ONEDAY TEST THE GROUP ALSO WROTE A CODE OF ETHICS AND MOVED TO SET UP AN ETHICS REVIEW BOARD IT EVEN CRAFTED A DEFINITION OF A SALES PROFESSIONAL AS ONE WHO AMONG OTHER THINGS TREATS CUSTOMERS WITH RESPECT AND ENTHUSIASM AND SELLS WITH INTEGRITY CAR SALESPEOPLE OFTEN STEREOTYPED AS LESS THAN PROFESSIONAL BEGAN THEIR OWN CERTIFICATION PROGRAM A YEAR AGO THROUGH THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION THE CURRICULUM WHICH COMBINES HOME STUDY WITH TRAINING SEMINARS INCLUDES ETHICAL PRACTICES SELLING TECHNIQUES AND CUSTOMER RELATIONS SO FAR 2500 OF THE NATION'S 150000 AUTO SALESPEOPLE HAVE ENROLLED NO ONE MUCH LIKES A STOOL PIGEON BUT TO COMBAT EMPLOYEE MISCONDUCT IT MAY HELP TO MAKE SNITCHING ON COWORKERS A JOB RESPONSIBILITY A STUDY BY TWO BUSINESSSCHOOL RESEARCHERS LINDA TREVINO OF PENNSYLVANIA STATE UNIVERSITY AND BART VICTOR OF THE UNIVERSITY OF NORTH CAROLINA SUGGESTS THAT BOSSES CAN ENCOURAGE EMPLOYEES TO TATTLE BY REMOVING THE ISSUE OF ETHICS FROM WHISTLE BLOWING THE RESEARCHERS SURVEYED 118 EMPLOYEES AT 24 RESTAURANTS OF AN UNIDENTIFIED FASTFOOD CHAIN EAGER TO PARE FOOD THEFT THE CHAIN'S CODE OF CONDUCT SPECIFIED THAT FOOD THEFT WAS A MISDEED BUT DIDN'T MAKE REPORTING THEFT A JOB RESPONSIBILITY THE STUDY FOUND EMPLOYEES WOULD BE MORE WILLING TO REPORT A COLLEAGUE IF SUCH REPORTING WERE A CLEARLY DEFINED JOB RESPONSIBILITY FOR THE WHISTLEBLOWER AND IF EMPLOYEES HELPED TO DEVELOP THE CODE OF CONDUCT AFTER THE FASTFOOD CHAIN ACTED ON THOSE AND OTHER FINDINGS AND INCREASED ENFORCEMENT INCIDENTS OF FOOD THEFT FELL 80 IT BECAME LESS ACCEPTABLE TO ENGAGE IN THAT BEHAVIOR SAYS DR VICTOR YOU WERE CONSIDERED TO BE RIPPING OFF NOT JUST THE RESTAURANT BUT YOUR CREW MAKING TATTLING A JOB DUTY COULD ESPECIALLY HELP RETAIL AND FOOD STORES REDUCE EMPLOYEE THEFT DR VICTOR SAYS THOSE ARE PLACES WHERE DIRECT SUPERVISION AND OTHER FORMS OF EXTERNAL LOSS CONTROL AREN'T SUFFICIENT AND WHERE IT'S LIKELY THAT COWORKERS KNOW WHAT'S GOING ON GLIMPSES FROM 1992 ANNUAL REPORTS MAYTAG'S SHOWS ONLY WOMEN DOING HOUSEHOLD CHORES ON THE COVER A HUSBAND SMILES AS HIS WIFE PREPARES DINNER RIBI IMMUNOCHEM RESEARCH'S REPORT SHOWS A TODDLER AS HE GETS A VACCINE SHOT HE'S SMILING WHY IS THE FESTIVE GENERAL JACKSON SHOWBOAT PICTURED ON THE COVER OF MOSINEE PAPER'S REPORT ONE REASON ITS BATHROOMS USE MOSINEE TOILET TISSUE 9304020181 930402 DRESDNER BANK POSTS 48 JUMP IN '92 NET INCOME BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GERMANY DRESDNER BANK REPORTED A 48 JUMP IN CONSOLIDATED NET INCOME FOR 1992 BUT ECHOED THE WARNINGS OF OTHER LEADING GERMAN BANKS ABOUT THE PROBABLE IMPACT OF GERMANY'S ECONOMIC SLOWDOWN ON EARNINGS GROWTH THIS YEAR WOLFGANG ROELLER CHIEF EXECUTIVE OFFICER SAID DRESDNER BANK'S GROUP OPERATING PROFIT BEFORE TAXES PROVISIONS AND OTHER DEDUCTIONS ROSE 13 IN 1992 TO 281 BILLION MARKS 175 BILLION PARTIAL OPERATING PROFIT WHICH EXCLUDES TRADING ON THE BANK'S OWN ACCOUNT ROSE 10 TO 245 BILLION MARKS GROUP NET ROSE TO 966 MILLION MARKS 466 MILLION MARKS OF WHICH WAS TRANSFERRED TO DISCLOSED RESERVES FROM 652 MILLION A YEAR EARLIER THE NET PROFIT FIGURE GENERALLY IS CONSIDERED LESS REPRESENTATIVE FOR GERMAN BANKS BECAUSE OF THEIR SOMEWHAT OPAQUE ACCOUNTING PRACTICES HOWEVER GERMAN BANKS ARE UNDER PRESSURE FROM FOREIGN INVESTORS TO ADAPT TO INTERNATIONAL ACCOUNTING STANDARDS IN SPITE OF THE HIGHER PROFIT GERMANY'S SECONDLARGEST BANK AFTER DEUTSCHE BANK KEPT ITS DIVIDEND UNCHANGED AT 12 MARKS A SHARE THIS WAS NECESSARY TO ENABLE THE BANK TO BUILD UP RESERVES AGAINST THE PROBABLE NEED FOR HIGHER PROVISIONS FOR LOSSES ON BAD LOANS MR ROELLER SAID FOR THE MOMENT THE OUTLOOK FOR 1993 IS GOOD BUT THERE IS A RISK THAT THE ECONOMIC ENVIRONMENT MAY DETERIORATE HE SAID THE ISSUE OF PROVISIONING FOR BAD LOANS HAS BECOME HIGHLY TOPICAL IN GERMANY AS BANKERS BRACE THEMSELVES FOR AN EXPECTED 15 DROP IN THE NATION'S GROSS DOMESTIC PRODUCT THIS YEAR UNTIL RECENTLY BANKS WERE RELUCTANT EVEN TO DISCLOSE AN OVERALL FIGURE FOR PROVISIONS AND THEY STILL ABSTAIN FROM PROVIDING ANY MEANINGFUL DETAILS OF THE IMPACT OF PROVISIONS IN THEIR PUBLISHED ACCOUNTS ANALYSTS HAVE SPECULATED THAT GERMANY'S LARGEST BANKS ARE DELIBERATELY EMPHASIZING THE NEED FOR HIGHER PROVISIONS IN ORDER TO RESIST DEMANDS FOR AN INCREASE IN THEIR DIVIDENDS ALL THREE BIG GERMAN BANKS HAVE ANNOUNCED UNCHANGED PAYOUTS FOR 1992 DESPITE THE ECONOMIC SLOWDOWN ANALYSTS EXPECT THE BANKS' CAUTION TO ENABLE THEM TO REPORT HIGHER 1993 EARNINGS MR ROELLER WHO WILL LEAVE HIS CURRENT POST SOON TO BECOME CHAIRMAN OF THE BANK'S SUPERVISORY BOARD DECLINED TO GIVE DETAILS ABOUT THE BANK'S PROVISIONING POLICY HE DID NOTE HOWEVER THAT IN 1992 THE BANK SET ASIDE NET PROVISIONS FOR LOAN LOSSES OF 12 BILLION MARKS HE GAVE NO COMPARISON FOR 1991 9304020180 930402 TELEFON AB LM ERICSSON PACT STOCKHOLM TELEFON AB LM ERICSSON SAID IT SIGNED A CONTRACT VALUED AT 300 MILLION WITH GUANDONG POST AND TELECOMMUNICATIONS BUREAU IN CHINA THE ORDER IS THE BIGGEST ERICSSON HAS EVER RECEIVED FROM CHINA THE SWEDISH TELECOMMUNICATIONS GROUP SAID THE ORDER COVERS DELIVERY OF AXE10 SWITCHING EQUIPMENT AS WELL AS TRANSMISSION AND COOLING EQUIPMENT TO BE DELIVERED FROM THIS YEAR THROUGH 1995 THIS CONTRACT FORMALIZES THE FRAME AGREEMENT SIGNED IN JUNE 1992 ERICCSON SAID 9304020179 930402 AETNA ESTIMATES STORM COSTS HARTFORD CONN AETNA LIFE & CASUALTY CO ESTIMATED CLAIM COSTS FROM THE MARCH WINTER STORM THAT HIT THE EAST COAST REDUCED FIRSTQUARTER NET INCOME ABOUT 25 MILLION OR ABOUT 23 CENTS A SHARE AFTER REINSURANCE AND TAXES THE INSURER SAID IT HAS RECEIVED ABOUT 11000 CLAIMS AND ANTICIPATES RECEIVING A TOTAL OF APPROXIMATELY 15000 CLAIMS IN 1992'S FIRST QUARTER AETNA HAD NET OF 2072 MILLION OR 188 A SHARE ON REVENUE OF 478 BILLION 9304020178 930402 LEISURE & ARTS IN CONCERT EASTER PLAY IS RESURRECTED AT THE CLOISTERS BY HEIDI WALESON NEW YORK IT'S EASTER TIME SO FRED RENZ'S ENSEMBLE FOR EARLY MUSIC WILL ONCE AGAIN BE DOING ITS BIT FOR THE SEASON BY MOUNTING THE LUDUS PASCHALIS AKA THE RESURRECTION PLAY OF TOURS AT THE CLOISTERS THREE TIMES THIS PALM SUNDAY WEEKEND SEVERAL OF LAST YEAR'S PERFORMERS WILL BE RETURNING IN PARTICULAR KAREN CLARK YOUNG WHO DID EXQUISITE JUSTICE TO MARY MAGDALENE'S HIGHLY EMOTIONAL SERIES OF LAMENTATIONS BUT BEHIND HER PERFORMANCE AND THE DECEPTIVELY SMOOTH REENACTMENT OF THIS MID 12THCENTURY RELIGIOUS PLAY LIES A SCHOLARLY DRAMA OF MUSICOLOGICAL RESURRECTION AND MUSICAL INGENUITY OF A HIGH ORDER THE ROOTS OF EARLY LITURGICAL MUSICDRAMA ARE SHROUDED IN MYSTERY THE PLAYS WERE SUPPOSEDLY PERFORMED BY THE CLERGY IN A TRADITION ESTABLISHED BY BENEDICTINE MONKS WHO TOOK THEM ALL OVER EUROPE AT FIRST THEY WERE JUST SIMPLE EXCHANGES DRAMATIZING BIBLICAL INCIDENTS PART OF THE HIGH MASS WHEN THEY GOT LONGER AND MORE ELABORATE THEY WERE DEEMED TOO DISRUPTIVE AND PERFORMED INSTEAD DURING LESSER CHURCH OFFICES OR PERHAPS ON THEIR OWN THE EASTER PLAY TELLS THE TALE OF THE THREE MARYS MAGDALENE JACOBI AND SALOME WHO COME SORROWFULLY TO THE TOMB OF CHRIST TO ANOINT HIS BODY THE ARCHANGEL MICHAEL TELLS THEM THAT HE IS RISEN MARY MAGDALENE ENCOUNTERS A DISGUISED CHRIST IN THE GARDEN TWO WAYFARERS MEET CHRIST STILL DISGUISED WHO BERATES THEM FOR NOT REALIZING THAT THE RESURRECTION IS AT HAND THE THREE WOMEN PASS ON THE GOOD NEWS OF THE RESURRECTION TO CHRIST'S DISCIPLES AND THE DRAMA ENDS WITH A JOYFUL TE DEUM TO ACHIEVE THIS EASY LOGICAL NARRATIVE FLOW MR RENZ HAD TO DO A CUTANDPASTE JOB THE TOURS MANUSCRIPT HAS SEVERAL MISSING PAGES ITS GARDEN SCENE FOR EXAMPLE HAS ONLY TWO LINES SO MR RENZ TOOK SECTIONS FROM OTHER VERSIONS OF THE EASTER PLAY WHICH ARE ALMOST IDENTICAL TO THAT OF TOURS HE TOOK A PREFACE FROM YET ANOTHER RELATED PLAY AND ADDED TWO PROCESSIONS OR CONDUCTI IN TWOPART POLYPHONY THAT INTRODUCE TWO OF THE SCENES AS WELL AS THE TE DEUM FROM OTHER SOURCES THESE INTERPOLATIONS NOT ONLY IMPROVED THE DRAMATIC EFFECT THEY ALSO GAVE GREATER WEIGHT AND THE LENGTH NECESSARY TO JUSTIFY A MODERN PERFORMANCE THE ORIGINAL EASTER PLAY WOULD HAVE LASTED ONLY 20 MINUTES THE RENZ RECENSION STRETCHES IT TO AN HOUR IN MAKING THESE CHANGES MR RENZ HAD TO KEEP THE REQUIREMENTS OF MUSICAL SCHOLARSHIP CONSTANTLY IN MIND HE OPERATES IN A PARTICULARLY AUSTERE ONE MIGHT SAY CLOISTERED CORNER OF SHOW BUSINESS AS A SCHOLAR AND A PERFORMER HE WAS OBLIGED TO MAKE SURE THAT HIS FINISHED PRODUCT BALANCED MUSICOLOGY PRACTICALITY AND INSPIRATION TAKE NOTATION FOR EXAMPLE IN MANUSCRIPT ALL OF THE EASTER PLAY'S NOTES HAVE THE SAME LENGTH IF PERFORMED AS WRITTEN THE MUSIC SOUNDS LIKE GREGORIAN CHANT MR RENZ FINDS SUCH DELIVERIES MANIC AND UNBALANCED MUSICOLOGISTS TEND TO CONCENTRATE ON THE MUSIC HE SAYS I DON'T THINK THE MONKS HAD A PREFERENCE FOR MUSIC THEY WERE TRYING TO GET THE WORD ACROSS THE LINES DON'T ALWAYS RHYME BUT THERE'S A GREAT BALANCE A RHYTHMIC FLOW IN THEM THAT TO ME CRIES OUT FOR METERED REALIZATION I THINK ONE REASON THAT THEY DIDN'T WRITE IN METER IS THAT IT'S EXTREMELY SUBTLE IF YOU START PRESCRIBING IT CAN GET EXTREMELY SINGSONG AND THE SINGER STOPS PAYING ATTENTION TO DELIVERING THE LATIN PHRASE THE SINGER HAS TO HAVE BOTH A SENSE OF INNER METER BUT AT THE SAME TIME TO SING THROUGH IT AS THOUGH HE'S MAKING THE LINE GO SOMEWHERE MR RENZ SAYS HE SPENT HOURS AND HOURS SLAVING OVER THE RHYTHMIC REALIZATION DRAMATIC CONCERNS ARE ANOTHER ISSUE SHOULD THE ACTING BE STYLIZED OR REALISTIC THE STAGE DIRECTIONS ARE ON THE ORDER OF THE ANGEL APPEARS WOODCUTS OF THE PLAYS SHOW THE ANGEL SITTING ON THE SEPULCHER AND THE SLEEPING SOLDIERS SPRAWLED AROUND IT FOR EXAMPLE BUT HOW TO GET FROM ONE TABLEAU TO THE NEXT OTHER QUESTIONS INVOLVE THE USE OF WOMEN IF THESE PLAYS WERE PERFORMED BY MONKS WHO WERE THE MARYS MR RENZ SAYS THAT THERE IS EVIDENCE THAT NUNS WERE SOMETIMES BORROWED TO HELP OUT THERE IS NO INDICATION OF INSTRUMENTAL ACCOMPANIMENT IN THE PLAYS EITHER BUT NO ONE SAYS THAT THERE WASN'T ANY MR RENZ BOWS TO PRACTICALITY HERE AND SPARINGLY USES A LUTE A DRONE A PRIMITIVE BAGPIPE AND SOME HANDBELLS MOSTLY TO KEEP THE PITCH TRUE RATHER THAN TRUST TO FATE IN AN HOUR OF SINGING OTHER PLAYS HE SAYS SEEM TO DEMAND MORE INSTRUMENTAL ACCOMPANIMENT MR RENZ SAYS THAT ONE OF THE TOUGHEST DECISIONS WAS DETERMINING WHERE THE PERFORMERS WERE SUPPOSED TO BE A POOR CATHEDRAL IN THE MIDDLE OF NOWHERE A MONASTIC COMMUNITY OR WEALTHY CHURCH DOING THE PLAY FOR ROYALTY AND USING IT AS AN EXCUSE TO SHOW OFF THE CHURCH TREASURY THE DOCUMENTS DON'T RESOLVE THE QUESTION BUT MR RENZ HAS CERTAINLY NOT VIOLATED THE SPIRIT OF HIS PLAY BY PRESENTING IT IN A ROMANESQUE CHAPEL ON PALM SUNDAY WHERE THIS RELIGIOUS DRAMA HAD A SPECIAL PATHOS AND MOOD LAST YEAR THERE WAS CHURCHLY WEIGHT TO THE PROCESSIONS AND THE ACTING MANAGED TO CAPTURE BOTH THE FORMAL AND PERSONAL SIDES OF THE DRAMA THE THREE MARYS MOVED IN A PHALANX ARMS SWEEPING UP FROM THEIR SIDES IN CONCERT AS THEY ENTREATED THE SPICE MERCHANT TO SELL THEM THE OILS THEY NEEDED TO ANOINT CHRIST'S BODY YET THE MOVEMENT WAS NOT OVERLY STYLIZED MARY MAGDALENE'S LOSS WAS CLEARLY HERS THERE WERE MOMENTS INTENDED TO AMAZE THE ANGEL A COUNTERTENOR APPEARED IN THE AISLE TO THE SOUND OF A RATTLING THUNDERSHEET AND CYMBALS RENDERING THE SOLDIERS CATATONIC AROUND THE TOMB BUT THE PLAY IS ABOUT SORROW AND THE RELIEVING OF SORROW RATHER THAN POMP AND ITS SUBTLETIES WERE ADMIRABLY CONVEYED BY THE 16MEMBER CAST AS THE MARYS FINALLY ANNOUNCED THE RESURRECTION TO THE DISCIPLES WHO KNELT IN THE AISLE THERE WAS A SENSE OF FINALITY AND JOY MR RENZ SAYS THAT HIS AGENDA IS PURELY AESTHETIC RATHER THAN RELIGIOUS BUT ONE COULD UNDERSTAND WHY THE DEVOUT AUDIENCES IN EASTERN EUROPE FOR WHOM HIS GROUP HAS PERFORMED SUCH PLAYS FOUND THEMSELVES JOINING IN THE FINAL TE DEUM MS WALESON WRITES FREQUENTLY ABOUT MUSIC 9304020177 930402 TEXAS INSTRUMENTS GETS CONTRACT DALLAS TEXAS INSTRUMENTS INC SAID ITS DEFENSE SYSTEMS AND ELECTRONICS GROUP WAS AWARDED A THREEYEAR 61 MILLION CONTRACT EXTENSION FROM SAMSUNG ELECTRONICS OF KOREA FOR 263 INFRARED THERMAL IMAGING SYSTEMS FOR KOREAN ARMY TANKS THE ELECTRONICS COMPANY SAID IT WILL BUILD THE SYSTEMS AT ITS FACILITY HERE AND EXPECTS TO BEGIN DELIVERY IN SEPTEMBER 9304020176 930402 EPITOPE PLANS CHARGE FOR SUIT BEAVERTON ORE EPITOPE INC SAID IT WILL TAKE A 14 MILLION CHARGE FOR THE SETTLEMENT OF A SHAREHOLDER LAWSUIT IN ITS SECOND QUARTER ENDED WEDNESDAY THE CHARGE WILL WIDEN AN EXPECTED NET LOSS FOR THE QUARTER A SPOKESWOMAN SAID THE SHAREHOLDER CLASSACTION SUIT ALLEGED INSIDER TRADING MISSTATEMENTS AND OMISSIONS BY THE COMPANY THE BIOTECH CONCERN DENIED THE ALLEGATIONS BUT SAID IT WAS CHEAPER TO SETTLE THAN TO FIGHT THE SUIT IN COURT 9304020175 930402 PIONEER ELECTRONICS CORP LONG BEACH CALIF PIONEER ELECTRONICS CORP TOKYO MERGED TWO OF ITS UNITS TO FORM A COMPANY THAT WILL INTEGRATE MULTIMEDIA SYSTEMS BUSINESS SYSTEMS OPTICAL MEMORY SYSTEMS AND ENTERTAINMENT THE TWO UNITS PIONEER COMMUNICATIONS OF AMERICA INC AND PIONEER LASER ENTERTAINMENT INC WILL OPERATE TOGETHER AS PIONEER NEW MEDIA TECHNOLOGIES THE NEW ENTITY WILL BE BASED IN LONG BEACH 9304020174 930402 BIG BOARD TAKES DISCIPLINARY MOVES AGAINST 13 PEOPLE BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTIONS AGAINST 13 INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS NEIL CONWAY SULLIVAN MANHATTAN BEACH CALIF A FORMER BROKER WAS BARRED FOR THREE YEARS BY A HEARING PANEL A FINDING AFFIRMED ON APPEAL TO THE EXCHANGE BOARD MR SULLIVAN WAS FOUND GUILTY OF MAKING UNAUTHORIZED PURCHASES FOR A CUSTOMER REBILLING CERTAIN TRADES TO OTHER ACCOUNTS AND TRANSFERRING UNPROFITABLE TRADES FROM ONE ACCOUNT TO ANOTHER WITHOUT INFORMING CUSTOMERS GUILIANO VALENTINO ASTORIA NY A FORMER CLERK WAS BARRED FOR THREE YEARS FOR ENTERING OR CAUSING TO BE ENTERED FICTITIOUS TRANSACTIONS ON HIS EMPLOYER'S BOOKS AND OTHER VIOLATIONS HE DIDN'T ADMIT OR DENY VIOLATIONS UNLESS OTHERWISE NOTED NONE OF THE INDIVIDUALS COULD BE REACHED OR HAD ANY COMMENT ON THE EXCHANGE ANNOUNCEMENTS JEFFREY J MORUZZI LAWRENCEVILLE NJ A FORMER BROKER WAS BARRED FOR 12 MONTHS HE DIDN'T ADMIT OR DENY FINDINGS HE MADE UNAUTHORIZED TRADES IN CUSTOMER ACCOUNTS MICHAEL JOSEPH MORSE ATLANTA A FORMER BROKER WAS BARRED THREE MONTHS HE DIDN'T ADMIT OR DENY FINDINGS HE MADE OPTIONS TRADES FOR CUSTOMERS WITHOUT WRITTEN AUTHORIZATION FRANCIS R RANDOLPH WOODSTOCK GA A FORMER BROKER WAS SUSPENDED FOUR WEEKS HE DIDN'T ADMIT OR DENY FINDINGS THAT HE SHARED A LOSS IN THE ACCOUNT OF A CUSTOMER EXERCISED DISCRETIONARY POWER IN AN ACCOUNT WITHOUT WRITTEN AUTHORIZATION AND ACCEPTED ORDERS FROM A PERSON OTHER THAN THE CUSTOMER WITHOUT WRITTEN AUTHORIZATION ARNOLD HINSDALE KRAUS SAN FRANCISCO A FORMER BRANCH OFFICE MANAGER WAS FINED 4000 HE DIDN'T ADMIT OR DENY HE FAILED TO USE DUE DILIGENCE TO LEARN ESSENTIAL FACTS ABOUT CERTAIN ACCOUNTS AND FAILED TO DETERMINE OR RECORD THE NATURE AND TYPES OF OPTIONS TRANSACTIONS FOR WHICH A CUSTOMER ACCOUNT WAS APPROVED THREE INDIVIDUALS WERE BARRED FOR MISAPPROPRIATION OF FUNDS STEPHEN C ELMENDORF UNION CITY NJ DIDN'T ADMIT OR DENY MISAPPROPRIATING 13487 FROM HIS MEMBER FIRM SUSAN G HAYES ALTA UTAH AFTER A CONTESTED HEARING WAS FOUND GUILTY OF MISAPPROPRIATING 1852 FROM HER FORMER MEMBER FIRM MARK R WILLIAMS BALTIMORE A FORMER BROKER WAS FOUND GUILTY OF MISAPPROPRIATING FUNDS FROM CUSTOMER ACCOUNTS AND FORGING ENDORSEMENTS ON CHECKS PAYABLE TO CUSTOMERS FOUR INDIVIDUALS WERE BARRED FOR FAILURE TO COOPERATE MATTHEW L WAGER NORTH BRUNSWICK NJ RICHARD EUGENE BLANCHARD HOUSTON GREGORY ALLEN NOTVEDT CHANHASSEN MINN AND RALPH WILLIAM SIANO JR MEMPHIS TENN AN ATTORNEY FOR MR WAGER SAID IN MY OPINION THE CHARGES WERE ABSOLUTELY BASELESS UNFORTUNATELY HE DID NOT HAVE THE MONEY TO DEFEND HIMSELF HE'S NOW EMPLOYED OUTSIDE THE BROKERAGE INDUSTRY IT JUST WASN'T WORTH IT FINANCIALLY FOR HIM TO DEFEND HIMSELF AGAINST THE CHARGES 9304020173 930402 MEDEVA PLC ENTERS GERMAN DRUG MARKET BY PURCHASING FIRM SPECIAL TO THE WALL STREET JOURNAL LONDON MEDEVA PLC GRABBED A FOOTHOLD IN THE GIANT GERMAN PHARMACEUTICAL MARKET AS WELL AS THE NUCLEUS OF A CANCERTREATMENT BUSINESS BY AGREEING TO BUY RIBOSEPHARM A CLOSELY HELD DRUG MAKER THE 523 MILLION 791 MILLION PURCHASE IS THE BOLDEST STEP IN EUROPE SO FAR BY MEDEVA A BRITISH DRUG COMPANY THAT HAS GROWN RAPIDLY BY BUYING SMALLER RIVALS AND FINDING NEW WAYS TO MARKET AGING USUALLY OFFPATENT MEDICINES EXCEPT FOR THE PURCHASE OF A SMALL FRENCH DRUG COMPANY EARLIER THIS YEAR MEDEVA'S PREVIOUS CONQUESTS CAME IN THE US THE TRANSACTION COMES LESS THAN A MONTH AFTER PROCORDIA AB OF SWEDEN SIGNED A 12 BILLION PURCHASE OF ANOTHER CANCER SPECIALIST THE ERBAMONT DIVISION OF MONTEDISON SPA INDICATING A GROWING APPETITE FOR TAKEOVERS IN EUROPE'S STAID PHARMACEUTICAL SCENE THE COMPANY ANNOUNCED PLANS FOR A 944 MILLION SHARE OFFERING WHICH WOULD FINANCE THE RIBOSEPHARM PURCHASE AND AT THE SAME TIME WIPE OUT EXISTING DEBT THE COMPANY'S DEBT CURRENTLY TOTALS 386 MILLION INVESTORS APPEARED TO APPLAUD MEDEVA'S LATEST MOVE AFTER FALLING INITIALLY IN REACTION TO THE SHARE OFFERING PROPOSAL MEDEVA STOCK REBOUNDED TO 226 PENCE 342 IN LONDON STOCK EXCHANGE TRADING DOWN A PENNY ON THE DAY BUT STILL WELL ABOVE THE LEVEL REFLECTING A THEORETICAL DILUTION RESULTING FROM THE PLANNED SHARE OFFERING RIBOSEPHARM REPORTED 1992 PRETAX PROFIT OF 99 MILLION MARKS 62 MILLION ON SALES OF 303 MILLION MARKS ITS BESTSELLING PRODUCT RIBOFOLIN ACCOUNTED FOR NEARLY TWOTHIRDS OF SALES RIBOFOLIN IS AN OFFPATENT MEDICINE USED IN COMBINATION THERAPY TO PROTECT CERTAIN CELLS FROM HIGHLY TOXIC AGENTS USED TO KILL CANCEROUS CELLS DESPITE THE LACK OF PATENT PROTECTION RIBOSEPHARM MANAGED TO SHARPLY BOOST SALES OF THE DRUG IN RECENT YEARS BY PIONEERING ITS USE IN NEW INDICATIONS 9304020172 930402 NEW VALLEY TO ASSUME CHAPTER 11 STATUS AFTER FAILING TO GET BACKING FOR REVAMP BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW VALLEY CORP FAILING IN ITS LONG STRUGGLE TO OBTAIN CREDITOR SUPPORT FOR AN OUTOFCOURT REORGANIZATION PLAN CONSENTED TO ENTER CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS A FEDERAL BANKRUPTCY COURT IN NEWARK NJ HAD GIVEN THE MESSAGING AND FINANCIAL SERVICES COMPANY UNTIL TODAY TO REACH A DEFINITIVE AGREEMENT WITH MAJOR HOLDERS OF ITS SENIOR SECURED NOTES TO RESTRUCTURE THE COMPANY UNDER A PREPACKAGED PLAN ALTHOUGH NEGOTIATIONS WITH NOTEHOLDERS WILL CONTINUE THE COURTSUPERVISED REORGANIZATION COULD BE MORE DISRUPTIVE COSTLY AND PROTRACTED THAN AN OUTOFCOURT PLAN UNDER CHAPTER 11 A COMPANY CONTINUES TO OPERATE UNDER PROTECTION FROM CREDITORS' LAWSUITS WHILE IT WORKS OUT A PLAN TO REPAY ITS DEBTS THE COMPANY'S WESTERN UNION FINANCIAL SERVICES INC UNIT WHICH REPRESENTS MORE THAN 90 OF NEW VALLEY'S BUSINESS ISN'T PART OF THE CHAPTER 11 PROCEEDINGS THE UNIT IS A SEPARATE SUBSIDIARY HAS SUBSTANTIAL NET WORTH AND IS FREE OF DEBT A SPOKESMAN SAID IN UPPER SADDLE RIVER NJ WESTERN UNION MAINLY IS AN INTERNATIONAL MONEY TRANSFER BUSINESS FOR 1992 NEW VALLEY REPORTED A NET LOSS OF ALMOST 20 MILLION OR 43 CENTS A SHARE ON REVENUE OF 449 MILLION NEW VALLEY FORMERLY WESTERN UNION CORP SAID IT INTENDS TO MEET ONGOING OBLIGATIONS TO SUPPLIERS AND EXPECTS THAT OBLIGATIONS TO TRADE CREDITORS WILL BE FULLY SATISFIED WITHOUT DELAY AND THAT EMPLOYEE PAYCHECKS AND BENEFITS WILL BE UNAFFECTED NEW VALLEY HAS BEEN BURDENED FOR SOME TIME WITH HIGHYIELD DEBT PAYMENTS POOR CASH FLOW AND A SUBSTANTIAL UNFUNDED LIABILITY ON ITS PENSION PLAN NEW VALLEY FOR EXAMPLE IS IN DEFAULT ON INTEREST PAYMENTS ON ABOUT 171 MILLION OF 1925 SENIOR DEBENTURES THAT WERE DUE LAST DEC 15 THE COMPANY HASN'T MADE INTEREST OR PRINCIPAL PAYMENTS ON DEBT SINCE APRIL 1 1991 AND AT THE END OF 1991 OWED 42 MILLION IN UNPAID INTEREST NEW VALLEY ALSO COULDN'T REACH AN AGREEMENT WITH ICAHN & CO MT KISCO NY CONTROLLED BY INVESTOR CARL ICAHN WHICH HOLDS ABOUT 83 MILLION OF THE DEBENTURES AND APOLLO ADVISORS LIMITED PARTNERSHIP LOS ANGELES WHICH HOLDS ABOUT 47 MILLION OF THE DEBENTURES THE NEW VALLEY SPOKESMAN SAID THE COMPANY FACED ADDITIONAL PRESSURE IN NOVEMBER 1991 WHEN THREE CREDITORS WHO HOLD ABOUT 11 MILLION FACE AMOUNT OF THE 1925 DEBENTURES FILED A PETITION SEEKING TO PUT THE COMPANY INTO INVOLUNTARY BANKRUPTCY PROCEEDINGS IN THE PAST FEW MONTHS SEVERAL LARGER UNSECURED CREDITORS AS WELL AS THE TRUSTEE FOR EIGHT OF THE COMPANY'S 11 OUTSTANDING ISSUES OF DEBT SECURITIES JOINED THAT PROCEEDING AS PETITIONERS NEW VALLEY SAID ALTHOUGH NEW VALLEY HAD EARLIER AGREED IN PRINCIPLE TO SETTLE WITH ITS LARGEST CREDITOR THE PENSION BENEFIT GUARANTY CORP THE GOVERNMENT'S GUARANTOR OF PENSIONS THE AGREEMENT FELL THROUGH THE AGENCY ESTIMATED NEW VALLEY'S UNFUNDED PENSION LIABILITY AT 420 MILLION WHILE THE COMPANY USING DIFFERENT INTEREST RATE ASSUMPTIONS BELIEVES THE LIABILITY IS ABOUT 274 MILLION IN EXCHANGE FOR ASSUMING THE LIABILITY THE AGENCY WOULD HAVE RECEIVED 200 MILLION OF NEWLY ISSUED NEW VALLEY DEBT AND AN 81 EQUITY STAKE IN THE REORGANIZED COMPANY THE COMPANY'S PREPACKAGED PROPOSAL LAST YEAR HAD PROPOSED TO ISSUE 525 MILLION OF NEW SECURITIES INCLUDING 350 MILLION OF NEW 10 AND 11 DEBENTURES AND 175 MILLION OF SUBORDINATED DEBENTURES THAT COULD PAY INTEREST IN THE FORM OF ADDITIONAL DEBENTURES 9304020171 930402 INTERNATIONAL SOUTH KOREA'S CAR EXPORTS SOAR SEOUL SOUTH KOREA SOUTH KOREA'S EXPORTS OF AUTOMOBILES ALMOST DOUBLED TO 136547 UNITS IN THE FIRST QUARTER FROM 68392 A YEAR EARLIER THANKS TO PEACEFUL LABORMANAGEMENT RELATIONS AND STRONGER MARKETS OVERSEAS THE KOREA AUTOMOBILE MANUFACTURERS ASSOCIATION SAID HYUNDAI MOTOR CO THE NATION'S LARGEST AUTO MAKER SHIPPED 87469 UNITS IN THE FIRST THREE MONTHS OF THE YEAR UP 788 KIA MOTORS CO SHIPPED 29248 UP 103 SHIPMENTS AT DAEWOO MOTOR CO SURGED 2794 TO 14254 UNITS ON STEPPEDUP SALES EFFORTS IN PAKISTAN UZBEK AND PERU MEANWHILE SALES IN THE DOMESTIC MARKET ALSO WERE BRISK RISING 22 TO 328791 UNITS BY COMPANY HYUNDAI SOLD 159680 UNITS UP 51 DAEWOO'S SALES ROSE 15 TO 39020 UNITS AND KIA MARKETED 92581 UNITS UP 12 THE ASSOCIATION SAID THE NATION'S SEVEN AUTO MAKERS ARE EXPECTED TO SHIP MORE THAN 520000 UNITS THIS YEAR LAST YEAR SOUTH KOREA SHIPPED 456000 UNITS 9304020170 930402 BUSINESS BRIEF NYNEX RETIREE CHARGE FOR HEALTH BENEFITS IS ABOUT 31 BILLION WHITE PLAINS NY NYNEX CORP SAID ITS CATCHUP CHARGE TO ACCOUNT FOR PROJECTED RETIREE HEALTH BENEFITS IS ABOUT 31 BILLION WHICH IT WILL CHARGE TO EARNINGS OVER 20 YEARS STARTING THIS YEAR A SPOKESMAN SAID NYNEX WAS THE FIRST OF THE REGIONAL BELL TELEPHONE COMPANIES TO TAKE THE CHARGE OVER 20 YEARS INCLUDING THE PRORATED AMOUNT OF THE 31 BILLION CHARGE AND ACTUAL CASH COSTS OF PAYING RETIREE MEDICAL BENEFITS NYNEX SAID IT EXPECTS 1993 RETIREE MEDICAL EXPENSE TO BE ABOUT 475 MILLION ON A PRETAX BASIS NYNEX REPORTED 1992 EARNINGS OF 131 BILLION OR 640 A SHARE ON REVENUE OF 1315 BILLION UTILITIES AND OTHER COMPANIES WITH RATEREGULATED BUSINESSES GENERALLY ARE EXPECTED TO SPREAD THE BIG ACCOUNTING HIT OVER 20 YEARS SINCE STATE UTILITY REGULATORS AREN'T INCLINED TO LET A COMPANY'S RATE STRUCTURE CHANGE SUDDENLY TO REFLECT A BIG ONETIME COST NYNEX'S TWO PRINCIPAL UNITS ARE RATEREGULATED BUSINESSES NEW YORK TELEPHONE CO AND NEW ENGLAND TELEPHONE CO ALL COMPANIES WERE REQUIRED TO BEGIN ACCOUNTING NO LATER THAN THIS YEAR FOR RETIREE MEDICAL BENEFITS ON AN ACCRUAL BASIS REFLECTING THE PROJECTED COST OF THE BENEFITS RATHER THAN ON A PAYASYOUGO BASIS FOR MANY COMPANIES THAT HAS RESULTED IN BIG CHARGES TO EARNINGS FOR THE ACCOUNTING CHANGES MOST OF THEM HAVE CHARGED THE CUMULATIVE LIABILITY ALL IN ONE YEAR ALTHOUGH UTILITIES CAN INCLUDE THE PROJECTED COSTS OF SUCH BENEFITS IN RATE INCREASE REQUESTS NYNEX SAID THE ACCOUNTING CHANGE WON'T AFFECT NEW YORK TELEPHONE RATEPAYERS UNDER A PLAN FILED WITH THE STATE'S PUBLIC SERVICE COMMISSION SIMILAR PLANS ARE BEING IMPLEMENTED IN NEW ENGLAND TELEPHONE'S STATES NYNEX SAID PETER CICCONE NYNEX'S CONTROLLER SAID THE COMPANY IS PERMITTED TO MOVE EXCESS ASSETS FROM ITS PENSION PLANS OVER TO TRUSTS IT ESTABLISHED TWO YEARS AGO TO BEGIN PREFUNDING ITS RETIREE MEDICAL OBLIGATIONS PENSION PLAN INVESTMENTS HAVE DONE WELL HE SAID AND CHANGES IT IS MAKING IN ACTUARIAL ASSUMPTIONS FOR ITS PENSION EXPENSE WILL GIVE IT A BENEFIT THAT WILL OFFSET THE INCREASED RETIREE MEDICAL EXPENSE 9304020169 930402 LDI EXPECTS 1STHALF RESULTS TO SLIDE AS CLIENTS POSTPONE LEASING COMPUTERS BY RALPH E WINTER STAFF REPORTER OF THE WALL STREET JOURNAL CLEVELAND LDI CORP IS ENCOUNTERING A LOT OF UNCERTAINTY AMONG CUSTOMERS CONSIDERING LEASING MAJOR COMPUTER SYSTEMS WHICH WILL DEPRESS RESULTS FOR THE FIRST HALF OF ITS YEAR ENDING JAN 31 SAID ROBERT S KENDALL CHAIRMAN AND CHIEF EXECUTIVE OFFICER COMPANIES UNCERTAIN ABOUT THE PROSPECTS FOR AN INVESTMENT TAX CREDIT THE OUTLOOK FOR THE ECONOMY AND POLICIES OF THE NEW TOP MANAGEMENT AT INTERNATIONAL BUSINESS MACHINES CORP ARE HOLDING OFF ENTERING INTO NEW COMPUTER LEASES MR KENDALL SAID IN AN INTERVIEW UNLESS MARKET CONDITIONS CHANGE MORE RAPIDLY THAN APPEARS LIKELY EARNINGS FOR THE APRIL 30 QUARTER WILL FALL BELOW THE 2 MILLION OR 29 CENTS A SHARE EARNED A YEAR AGO HE SAID AND NET INCOME FOR THE FIRST HALF PROBABLY WON'T EQUAL THE YEAREARLIER'S 38 MILLION OR 57 CENTS A SHARE ONCE CONGRESS PASSES A TAX BILL AND CUSTOMERS HAVE A BETTER FEEL FOR THE NEW DIRECTION AT IBM LDI EXPECTS AN UPTURN IN LEASING REVENUE THAT SHOULD RESULT IN HIGHER EARNINGS FOR THE SECOND HALF OF THE YEAR MR KENDALL SAID HOWEVER HE SAID IT'S TOO EARLY TO FORECAST WHETHER BUSINESS CONFIDENCE WILL IMPROVE RAPIDLY ENOUGH TO GENERATE HIGHER EARNINGS FOR THE YEAR IN FISCAL 1993 NET DROPPED 33 TO 69 MILLION OR 103 A SHARE ON REVENUE OF 3437 MILLION FOURTHQUARTER NET PLUNGED 51 MAINLY BECAUSE OF A DROP IN LEASING VOLUME MOST ANALYST EARNINGS ESTIMATES FOR THE YEAR RANGE FROM 95 CENTS TO 120 A SHARE MR KENDALL DECLINED TO MAKE HIS OWN FORECAST BUT SAID 120 APPEARS TO BE A LITTLE AGGRESSIVE HOWEVER HE SAID THINGS COULD CHANGE RAPIDLY RIGHT NOW THERE ARE A LOT OF SMALLER TRANSACTIONS BUT FEW OF THE BIG ONES MR KENDALL SAID I THINK UNCERTAINTY ABOUT TAXES IS A MAJOR ISSUE WHEN EXECUTIVES ARE UNCERTAIN THEY TEND TO POSTPONE MAJOR TRANSACTIONS MR KENDALL SAID HE HAS CONFIDENCE IN LOUIS V GERSTNER IBM'S NEW CEO HE SAID MR GERSTNER DID A GOOD JOB OF COMPUTERIZING KEY OPERATIONS AT AMERICAN EXPRESS CO WHERE HE WORKED BEFORE HEADING RJR NABISCO HOLDINGS CORP IBM SUPPLIES ABOUT 40 OF THE EQUIPMENT LDI LEASES LDI IN THE LAST FEW YEARS DIVERSIFIED INTO SALE OF PERSONAL COMPUTERS AND PROVIDING A BROADER ARRAY OF COMPUTER SERVICES THE TECHNOLOGY AND DISTRIBUTION BUSINESSES ARE GROWING RAPIDLY BOTH IN SALES AND OPERATING PROFIT BUT AS A GROUP THEY GENERATE LOWER MARGINS THAN THE LEASING BUSINESS TRADITIONALLY HAS LDI EXPECTS DIRECT SALES OF PCS AND OTHER ELECTRONIC EQUIPMENT AND LDI'S SERVICE BUSINESSES TO PROVIDE MOST OF THE COMPANY'S FUTURE GROWTH MR KENDALL SAID THE COMPANY SOON EXPECTS TO ANNOUNCE AN ALLIANCE WITH ANOTHER ELECTRONICS CONCERN UNDER WHICH THE TWO COMPANIES WILL PROVIDE DATA PROCESSING SERVICES TO OTHER BUSINESSES MR KENDALL SAID BUT HE DECLINED TO NAME LDI'S NEW PARTNER IN ADDITION LDI PLANS TO OFFER A NUMBER OF NEW SPECIALIZED COMMUNICATIONS AND COMPUTER SERVICES HE SAID TELECOMMUNICATIONS FOR BOTH VOICE AND DATA TRANSMISSION ALREADY ARE A GROWTH AREA FOR LDI HE SAID AND THERE'S GREAT OPPORTUNITY TO EXPAND COMMUNICATIONS IS THE MOST DYNAMIC PIECE OF THE BUSINESS HE SAID IT'S GROWING MORE THAN 50 A YEAR FUELED BY SPECTACULAR TECHNOLOGICAL ADVANCES 9304020168 930402 JOSEPH DEAR SELECTED BY PRESIDENT CLINTON TO BE HEAD OF OSHA WASHINGTON JOSEPH DEAR DIRECTOR OF WASHINGTON STATE'S LABOR DEPARTMENT WILL BE NOMINATED BY PRESIDENT CLINTON TO HEAD THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION MR DEAR 41 YEARS OLD JOINED THE LABOR DEPARTMENT YESTERDAY AS A CONSULTANT UNTIL HIS BACKGROUND CHECK HAS BEEN COMPLETED AGENCY OFFICIALS SAID MR DEAR WILL TAKE OVER OSHA AT A TIME WHEN THE AGENCY HAS SEVERAL CONTROVERSIAL ISSUES ON ITS AGENDA INCLUDING WHETHER TO BAN WORKPLACE SMOKING HOW TO CURB THE GROWTH OF REPETITIVESTRESS INJURIES AND HOW TO IMPLEMENT NEARLY 400 RULES ON TOXINS THAT WERE RECENTLY REJECTED BY A FEDERAL APPEALS COURT FOR IMPROPER DOCUMENTATION MR DEAR HAS RUN THE WASHINGTON STATE AGENCY SINCE 1987 BEFORE THAT HE STARTED THE AGENCY'S HEALTHCARE COSTCONTAINMENT PROGRAM AS DEPUTY DIRECTOR OF THE DEPARTMENT IN ADDITION MR CLINTON ANNOUNCED THAT HE WILL NOMINATE JUNE GIBBS BROWN A FORMER INSPECTOR GENERAL AT SEVERAL GOVERNMENT AGENCIES TO BE INSPECTOR GENERAL OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES MS BROWN WHO IS CURRENTLY INSPECTOR GENERAL OF THE NAVY'S PACIFIC FLEET AT PEARL HARBOR HAWAII JOINED THE FEDERAL GOVERNMENT IN 1972 SHE HAS SERVED IN THE INTERIOR DEPARTMENT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AND THE PENTAGON BOTH NOMINATIONS WILL REQUIRE SENATE CONFIRMATION 9304020167 930402 CONVERSION INDUSTRIES OFFERING PASADENA CALIF CONVERSION INDUSTRIES INC SAID IT WILL DISTRIBUTE TO ITS SHAREHOLDERS ONE SHARE OF ITS STATORDYNE CORP AFFILIATE FOR EVERY FIVE CONVERSION SHARES THEY HOLD OR A TOTAL OF ABOUT ONE MILLION STATORDYNE SHARES THE DISTRIBUTION WILL FOLLOW AN OFFERING OF ONE MILLION STATORDYNE UNITS COMPOSED OF COMMON STOCK WARRANTS AND A PUT FEATURE TO BE MANAGED BY TAMARON INVESTMENTS INC OF ENGLEWOOD COLO THE OFFERING AND DISTRIBUTION ARE EXPECTED TO BE COMPLETED THIS SUMMER THEN CONVERSION WHICH IS INVOLVED IN ALTERNATIVE ENERGY PROJECTS OIL AND GAS DEVELOPMENT AND FINANCIAL SERVICES WILL OWN ABOUT 22 OF STATORDYNE A PASADENA CALIF DEVELOPER OF POWER SYSTEMS 9304020166 930402 CANADIAN STEEL OUTPUT OTTAWA CANADIAN STEEL PRODUCTION TOTALED 282826 METRIC TONS IN THE WEEK ENDED SATURDAY A 11 INCREASE FROM 279842 TONS THE PREVIOUS WEEK BUT A 1 DECLINE FROM 285791 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 3333510 TONS A 32 INCREASE FROM 3231336 TONS A YEAR EARLIER 9304020165 930402 WHAT'S NEWS WORLDWIDE CLINTON DECLARED THAT THE US MUST ACT SWIFTLY TO HELP RUSSIAN REFORMS THE PRESIDENT SET TO UNVEIL HIS AID PACKAGE FOR MOSCOW AT A WEEKEND SUMMIT WITH YELTSIN IN CANADA SAID US ASSISTANCE SHOULDN'T BE VIEWED AS CHARITY INSTEAD CLINTON SAID IT'S AN INVESTMENT IN OUR OWN FUTURE THE AID PACKAGE IS EXPECTED TO INCLUDE A HOUSING PROGRAM FOR RUSSIAN MILITARY OFFICERS ASSISTANCE FOR PIPELINE REPAIRS A FUND FOR NEW ENTREPRENEURS A PRIVATIZATION FUND TO HELP THE STATE SELL OFF ASSETS AND CITIZENTOCITIZEN PROGRAMS YELTSIN COULD FACE NEW POLITICAL TROUBLES UPON HIS RETURN TO RUSSIA WHERE HIS OPPONENTS ARE CERTAIN TO ATTACK HIM FOR TURNING TO WASHINGTON FOR HELP DEFENSE ATTORNEYS ABRUPTLY RESTED THEIR CASE IN THE RODNEY KING BEATING TRIAL IN LOS ANGELES ONLY ONE OF THE FOUR ACCUSED POLICE OFFICERS TOOK THE STAND IN THE SIXWEEKOLD FEDERAL TRIAL THE CASE COULD GO TO THE JURY AS EARLY AS THE MIDDLE OF NEXT WEEK REBUTTAL AND CLOSING STATEMENTS ARE ALL THAT REMAIN THE UN SUSPENDED EVACUATIONS FROM SREBRENICA AFTER MUSLIM REFUGEES WERE KILLED IN THE RUSH TO FLEE THE BOSNIAN TOWN BUT UN OFFICIALS VOTED TO DEFY SERB FORCES AND PUSH AHEAD WITH AID CONVOYS TODAY MEANWHILE BOSNIA WENT BEFORE THE INTERNATIONAL COURT OF JUSTICE ACCUSING SERBIA OF GENOCIDE AND ASKING FOR PROTECTION CYRUS VANCE SAID HE IS RESIGNING AS THE UN MEDIATOR IN THE YUGOSLAV CONFLICT CALLING IT THE MOST DIFFICULT JOB HE HAS EVER HAD VANCE IS EXPECTED TO BE SUCCEEDED BY NORWEGIAN FOREIGN MINISTER STOLTENBERG A NUCLEAR WATCHDOG AGENCY ASKED THE UN SECURITY COUNCIL TO REVIEW NORTH KOREA'S REFUSAL TO ALLOW INSPECTIONS OF NUCLEAR FACILITIES THE INTERNATIONAL ATOMIC ENERGY AGENCY SAID IT IS UNABLE TO CERTIFY THAT NORTH KOREA HASN'T DIVERTED MATERIALS FROM ITS NUCLEAR RESEARCH PROGRAM TO DEVELOP WEAPONS A FEDERAL JUDGE IN NEW YORK SET A TENTATIVE TRIAL DATE OF SEPT 14 FOR THE KEY DEFENDANTS ACCUSED OF BOMBING THE WORLD TRADE CENTER GIVING PROSECUTORS MORE THAN THE USUAL 70 DAYS IN ORDER TO GATHER EVIDENCE AN ASSISTANT US ATTORNEY CITED THE NEED FOR THE FBI TO SIFT THROUGH DEBRIS A TRANSATLANTIC DEBATE ERUPTED OVER NEW QUESTIONS ABOUT THE VALUE OF THE DRUG AZT IN THE EARLY TREATMENT OF HIV INFECTION THE CONTROVERSY PITS SKEPTICS IN AN ANGLOFRENCH STUDY GROUP AGAINST US OFFICIALS WHO HAVE CHAMPIONED THE CAUSE OF EARLY INTERVENTION TO DELAY THE ONSET OF AIDS THE US WILL BRING 36 OF SOME 250 HAITIAN REFUGEES INFECTED WITH THE AIDS VIRUS TO THIS COUNTRY FOR TREATMENT THE JUSTICE DEPARTMENT SAID THE REFUGEES HAVE BEEN DETAINED AT THE US NAVAL BASE IN CUBA THE DEPARTMENT SAID THE ACTION WAS TAKEN TO COMPLY WITH A COURT ORDER ISSUED LAST WEEK AND DOESN'T REPRESENT A CHANGE IN POLICY CLINTON'S DEFENSE BUDGET DREW CRITICISM AT A SENATE HEARING AND ARMED SERVICES COMMITTEE CHIEF NUNN WARNED THAT CONGRESS MAY MAKE DEEPER WEAPONS CUTS DEFENSE SECRETARY ASPIN SAID THE BUDGET CALLS FOR NO MAJOR ARMS CUTS NEXT YEAR BECAUSE THE ADMINISTRATION HASN'T YET DECIDED WHAT TO CUT THE JUSTICE DEPARTMENT SAID FOUR REPUTED MEMBERS OF THE ABU NIDAL GROUP WERE INDICTED FOR CONSPIRING TO COMMIT TERRORIST ACTS IN THE US AND FOR PLANNING THE 1989 MURDER OF A TEENAGE GIRL THE GOVERNMENT SAID NONE OF THE GROUP'S OTHER PLANS WERE CARRIED OUT THE RATE OF SMOKING IN THE US ROSE SLIGHTLY IN 1991 THE FIRST INCREASE AFTER A STEADY DECLINE FOR THE PAST 25 YEARS ACCORDING TO A NEW FEDERAL STUDY IN 1991 257 OF THE ADULT POPULATION SMOKED COMPARED WITH 255 IN 1990 ACCORDING TO THE SURVEY ISRAELI GUNBOATS AND HELICOPTERS HIT PALESTINIAN STRONGHOLDS AND LATER BLASTED A SUSPECTED ROCKET LAUNCH SITE IN SOUTHERN LEBANON THE AIR AND SEA BARRAGE NORTH OF TRIPOLI WAS ISRAEL'S DEEPEST INCURSION INTO LEBANON SO FAR THIS YEAR A SALVADORAN JUDGE ORDERED THE RELEASE OF TWO MILITARY OFFICERS CONVICTED IN THE 1989 SLAYINGS OF SIX JESUIT PRIESTS THE TWO OFFICERS ARE THE FIRST TO BENEFIT FROM A GENERAL AMNESTY FOR HUMAN RIGHTS VIOLATORS 9304020164 930402 WHO'S NEWS PANIC BACK AT ICN PHARMACEUTICALS NOW IS FACING A FIGHT TO KEEP HIS JOB BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL MILAN PANIC THE SERBIAN EMIGRE WHOSE STINT AS PRIME MINISTER OF YUGOSLAVIA ENDED ABRUPTLY NOW FACES A FIGHT TO KEEP HIS JOB AT ICN PHARMACEUTICALS INC A CALIFORNIA STOCKBROKER WHOSE CLIENTS INCLUDE SOME OF ICN'S BIGGEST SHAREHOLDERS FILED A PROPOSAL WITH THE SECURITIES AND EXCHANGE COMMISSION YESTERDAY TO OUST MR PANIC WHO RETURNED AS ICN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER LAST MONTH THE BROKER RAFI M KHAN WANTS TO INSTALL AN ENTIRELY NEW BOARD INCLUDING HIMSELF AT THE COSTA MESA CALIF DRUG MAKER THE FILING IS A CONSENT SOLICITATION WHICH IS SIMILAR TO A PROXY FIGHT BUT IS GENERALLY LESS COSTLY AND DOESN'T REQUIRE A SHAREHOLDER MEETING REMOVAL OF THE BOARD REQUIRES APPROVAL BY HOLDERS OF A MAJORITY OF ICN'S TOTAL SHARES OUTSTANDING THERE SHOULD BE A CHANGE IN MANAGEMENT BECAUSE OF THE OPERATING PERFORMANCE THE CUMULATIVE RETURN TO THE STOCKHOLDERS IN COMPARISON TO OTHER COMPANIES AND EXCESSIVE COMPENSATION TO MR PANIC THE FILING SAID MR KHAN OWNS 120000 ICN SHARES OR LESS THAN 1 OF THE SHARES OUTSTANDING MR PANIC RECEIVED TOTAL CASH COMPENSATION OF 768681 IN 1991 AND A BONUS VALUED AT 54 MILLION WHEN IT WAS AWARDED IN APRIL 1992 THIS BONUS WAS PAID IN A YEAR WHICH SAW THE PRICE OF THE COMPANY'S STOCK SINK TO 650 A SHARE FROM 20375 A SHARE THE FILING SAID MR KHAN RESIGNED TWO WEEKS AGO FROM A BEVERLY HILLS CALIF BROKERAGE FIRM HJ MEYERS & CO OVER A DISPUTE THAT INVOLVED ICN AND MR PANIC MR KHAN CLAIMS HE WAS THE FIRM'S TOP BROKER AND IS STILL ON GOOD TERMS WITH ITS OWNER BUD MEYERS HJ MEYERS RECENTLY UNDERWROTE A SECURITIES OFFERING FOR VIRATEK INC A PUBLICLY TRADED SUBSIDIARY OF ICN MR MEYERS DIDN'T RETURN A CALL YESTERDAY BUT CONFIRMED THROUGH A SPOKESWOMAN THAT MR KHAN LEFT VOLUNTARILY ICN OFFICIALS SAID THEY HADN'T SEEN THE FILING BUT AFTER IT WAS DESCRIBED TO THEM THE OFFICIALS ISSUED A STATEMENT SAYING WE ARE SHOCKED THAT SOMEONE WHO RECENTLY PARTICIPATED IN AN UNDERWRITING FOR ONE OF THE COMPANY'S SUBSIDIARIES WOULD TAKE AN ACTION OF THIS SORT KHAN HAS ACTED IRRESPONSIBLY FOR SOMEONE IN A FIDUCIARY CAPACITY WE INTEND TO PROVE THIS IN COURT AND TO DEMAND AN IMMEDIATE SEC INVESTIGATION OF HIS ACTIVITIES MR KHAN SAID HE ABSOLUTELY DENIED ANY WRONGDOING MR PANIC WASN'T AVAILABLE MR KHAN SAID IN AN INTERVIEW THAT HE IS COUNTING ON SUPPORT FROM VIRTUALLY ALL OF ICN'S INSTITUTIONAL INVESTORS MANY OF WHOM BOUGHT THE STOCK BASED ON HOPES FOR ICN'S RIBAVIRIN AN ANTIVIRAL DRUG I WOULD BE SHOCKED IF THE TOP 20 INSTITUTIONAL INVESTORS DIDN'T ALL SUPPORT THIS SAID MR KHAN WHO HAS JOINED THE BEVERLY HILLS FIRM OF REYNOLDS KENDRICK STRATTON INC THOSE INVESTORS ARE BELIEVED TO HOLD AS MUCH AS HALF OF ICN'S SHARES JOHN KAWESKE EXECUTIVE VICE PRESIDENT OF INVESCO TRUST CO DECLINED TO SAY DIRECTLY HOW HE WILL VOTE BUT HE SAID INVESCO'S INVESTMENT WAS MADE A FEW MONTHS AGO PREDICATED ON THE IDEA THAT THERE HAD BEEN A CHANGE IN MANAGEMENT WHEN PANIC BECAME PRIME MINISTER AND GAVE UP HIS CORPORATE RESPONSIBILITIES INVESCO IS ONE OF ICN'S LARGEST SHAREHOLDERS WITH 13 MILLION SHARES OR A 9 STAKE IN ADDITION THE INVESTMENT REFLECTS OUR BELIEF THAT RIBAVIRIN WILL BECOME A MUCH LARGERSELLING DRUG THAN IT CURRENTLY IS BECAUSE OF PROMISING INDEPENDENT TEST RESULTS SHOWING ITS EFFECTIVENESS IN TREATING HEPATITIS C MR KAWESKE SAID THE DISEASE WHICH CAN DESTROY THE LIVER IS A GROWING HEALTH PROBLEM IN THE US AND AROUND THE WORLD RIBAVIRIN IS ICN'S ONLY PROPRIETARY DRUG AND IS SOLD LARGELY OVERSEAS THE US FOOD AND DRUG ADMINISTRATION HAS APPROVED THE DRUG IN AEROSOL FORM AGAINST A LUNG AILMENT IN INFANTS MR PANIC'S ATTEMPTS IN THE 1980S TO PROMOTE RIBAVIRIN FOR OTHER DISEASES INCLUDING AIDS GOT HIM INTO TROUBLE WITH THE FDA AND THE SEC THE 63YEAROLD MR PANIC WAS REINSTATED LAST MONTH IN ALL HIS CORPORATE POSTS AT ICN AND ITS FOUR PUBLICLY TRADED SUBSIDIARIES AFTER AN EIGHTMONTH LEAVE OF ABSENCE TO SERVE AS YUGOSLAVIA'S PRIME MINISTER MR PANIC RETURNED TO CALIFORNIA AFTER FAILING TO DEFEAT SERBIAN PRESIDENT SLOBODAN MILOSEVIC IN AN ELECTION CAMPAIGN IN DECEMBER 9304020163 930402 HONDA MOTOR SAYS TWO PLANTS IN OHIO WERE IDLE WEDNESDAY DETROIT HONDA MOTOR CO SAID ITS ASSEMBLY PLANTS IN MARYSVILLE AND EAST LIBERTY OHIO WHICH BUILD THE ACCORD AND CIVIC WERE IDLE WEDNESDAY FOR INVENTORY FOR PARTS THE BIG THREE AUTO MAKERS SAID THEY PLAN OVERTIME THIS WEEK AND NEXT WEEK AT SEVERAL CAR AND TRUCK ASSEMBLY PLANTS ALTOGETHER THE 10 AUTO MAKERS THAT BUILD CARS IN THE US PLAN TO ASSEMBLE 234669 CARS AND TRUCKS THIS WEEK UP 27 FROM 184598 BUILT A YEAR AGO 9304020162 930402 AMBER'S MARCH SALES ROSE 59 DALLAS AMBER'S STORES INC SAID MARCH SALES INCREASED 59 TO 38 MILLION FROM 24 MILLION A YEAR AGO THE ARTS AND CRAFTS RETAILER SAID SALES AT STORES OPEN AT LEAST ONE YEAR DECREASED 19 9304020161 930402 AMOCO TALISMAN GAS DISCOVERY CHICAGO AMOCO CANADA PETROLEUM LTD A UNIT OF AMOCO CORP AND TALISMAN ENERGY INC SAID THEY DISCOVERED NATURAL GAS IN THE SUKUNKA AREA OF BRITISH COLUMBIA THE DISCOVERY WELL EQUALLY OWNED BY AMOCO AND TALISMAN A CANADIAN OIL AND GAS COMPANY FLOWTESTED 42 MILLION CUBIC FEET A DAY OF NATURAL GAS THE WELL IS LOCATED ABOUT 435 MILES NORTHEAST OF VANCOUVER THE COMPANIES ALREADY HAVE COMPLETED THREE OTHER WELLS IN THE AREA THAT WILL BE TIED TO A PIPELINE GATHERING SYSTEM EXPECTED TO BE COMPLETED BY THE THIRD QUARTER 9304020160 930402 VICKERS PLC RIGHTS ISSUE LONDON UK ENGINEERING CONCERN VICKERS PLC SAID ITS 605 MILLION 915 MILLION RIGHTS ISSUE OF NEW SHARES WAS 926 TAKEN UP BY EXISTING SHAREHOLDERS THE REMAINING SHARES WERE PLACED WITH INSTITUTIONAL INVESTORS BY HOARE GOVETT CORPORATE FINANCE LTD AND CAZENOVE & CO AT A 3175PENCE 48 CENTS PREMIUM AFTER EXPENSES TO THE RIGHTS ISSUE PRICE OF 95 PENCE A SHARE VICKERS SAID 9304020159 930402 INTERNATIONAL US IS WARY OF JAPANESE STIMULUS PLAN WITH BIG FIGURES NOT ENOUGH SUBSTANCE BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IN AN EFFORT TO BOOST ITS TROUBLED ECONOMY JAPAN IS PREPARING TO LAUNCH WHAT APPEARS TO BE ITS LARGESTEVER PUBLIC SPENDING CAMPAIGN BUT WATCH OUT THE PROGRAM MIGHT NOT BE AS AMBITIOUS AS IT SEEMS AND THAT PROSPECT HAS OFFICIALS IN WASHINGTON CONCERNED FOR WEEKS FINANCIAL MARKETS IN TOKYO HAVE SALIVATED IN ANTICIPATION OF A MEATY FISCAL STIMULUS PROGRAM TO BE SERVED UP EARLY THIS MONTH BEFORE PRIME MINISTER KIICHI MIYAZAWA TRAVELS TO WASHINGTON FOR HIS FIRST MEETING WITH PRESIDENT CLINTON YESTERDAY MR MIYAZAWA TROTTED OUT AN APPETIZER IN HIS FIRST PUBLIC COMMENTS ABOUT THE MEASURE HE SAID THE STIMULUS PACKAGE WILL PUMP MORE THAN 107 TRILLION YEN 9316 BILLION INTO THE ECONOMY THE PRIME MINISTER STRESSED THAT THE SIZE OF THE PACKAGE IS STILL UNDER DISCUSSION AND DUCKED QUESTIONS ABOUT ITS CONTENT STILL THE NUMBER ALONE THOUGH WELL BELOW ESTIMATES FLOATED BY OTHER POLITICAL LEADERS RECENTLY WAS ENOUGH TO SEND TOKYO STOCK PRICES SOARING MR MIYAZAWA'S COMMENTS WOULD SEEM TO BE WELCOME NEWS TO JAPAN'S TRADING PARTNERS TOO THE US AND OTHER MAJOR INDUSTRIALIZED NATIONS HAVE BEEN PRESSING JAPAN WHICH HAS A STRONGER FISCAL POSITION THAN ANY OF THE SEVEN MAJOR ECONOMIC POWERS TO PUMP UP ITS SAGGING ECONOMY WITH PUBLIC SPENDING THE OBJECTIVE SPUR JAPANESE DEMAND FOR IMPORTS AND THEREBY CUT THE NATION'S MAMMOTH TRADE SURPLUS SOME WESTERN ECONOMISTS THOUGH THINK JAPAN'S NEW SPENDING PROGRAM MAY TURN OUT TO BE MORE BUN THAN BEEF THEY FEAR THAT OFFICIALS AT JAPAN'S FISCALLY CONSERVATIVE MINISTRY OF FINANCE WILL DRESS UP THE PACKAGE WITH GIMMICKS LEAVING ONLY A FEW TRILLION YEN IN MEASURES THAT DIRECTLY STIMULATE THE ECONOMY INDEED SOME MINISTRY OFFICIALS CONCEDE PRIVATELY THAT THE PACKAGE COULD BECOME INFLATED YOU WANT A BIG NUMBER WE CAN COME UP WITH A BIG NUMBER ONE OFFICIAL SAYS WITH A WRY GRIN ELEVEN TRILLION FOURTEEN TRILLION WHATEVER YOU LIKE BUT IT MAY NOT MEAN ANYTHING CONSIDER THE EMERGENCY ECONOMIC STIMULUS PACKAGE ANNOUNCED BY THE GOVERNMENT IN AUGUST FINANCE MINISTRY OFFICIALS INITIALLY VALUED THE PACKAGE AT 107 TRILLION YEN BUT MANY ECONOMISTS SAY IT ULTIMATELY PRIMED THE PUMP WITH LESS THAN FIVE TRILLION YEN IN MAMIZU OR PURE WATER THAT IS TRULY NEW SPENDING THE REST OF THE SPENDING INCLUDED ITEMS SUCH AS LOWINTEREST LOANS TO SMALL BUSINESS FROM THE POSTAL SAVINGS SYSTEM EASED RESTRICTIONS ON THE AMOUNT OF PUBLIC PENSION FUNDS AVAILABLE TO BUY STOCK GRANTS TO LOCAL GOVERNMENTS TO PURCHASE LAND AND ACCELERATION OF PUBLIC WORKS PROJECTS ALREADY ON THE DRAWING BOARD TO COMPLICATE MATTERS THE MINISTRY SCALED BACK THE AUGUST PROVISIONS IN A SUPPLEMENTAL BUDGET IT RELEASED IN OCTOBER FINANCE MINISTRY OFFICIALS ARE MASTERS OF OBFUSCATION SAYS PETER MORGAN AN ECONOMIST AT MERRILL LYNCH JAPAN INC THE LAST THING THEY WANT IS FOR PEOPLE TO UNDERSTAND THEIR BUDGET NUMBERS US TREASURY SECRETARY LLOYD BENTSEN IS SAID TO HAVE EXPRESSED FRUSTRATION ABOUT THAT HE WANTS TO KNOW WHY JAPANESE AND WESTERN OFFICIALS APPEAR TO DISAGREE OVER WHAT CONSTITUTES ECONOMIC STIMULUS AND HAS ASKED UNDERSECRETARY LAWRENCE SUMMERS TO RECONCILE THE DIFFERENCES US OFFICIALS ARE ALSO CONSULTING ECONOMISTS AT A NUMBER OF WESTERN FINANCIAL INSTITUTIONS IN TOKYO FOR HELP IN EVALUATING THIS NEW STIMULUS MEASURE PART OF THE DISPUTE IS ABOUT DEFINITIONS MORE THAN A THIRD OF LAST YEAR'S PUMPPRIMING EFFORT WAS FINANCED BY DEPOSITS OF JAPAN'S GIANT POSTAL SAVINGS SYSTEM FINANCE MINISTRY OFFICIALS COUNT THIS MONEY AS STIMULUS THEY SAY IT WOULDN'T HAVE MADE ITS WAY INTO THE ECONOMY WITHOUT A POLICY DECISION MOST WESTERN ECONOMISTS DOUBT THAT AS THEY TEND TO VIEW POSTALSAVINGS DEPOSITS AS HAVING BEEN DIVERTED FROM PRIVATE LENDING INSTITUTIONS THAT WOULD HAVE LENT THE MONEY ANYWAY BUT AT A DEEPER LEVEL THE TWO INTERPRETATIONS OF WHAT CONSTITUTES PUBLIC SPENDING REFLECT FUNDAMENTAL DIFFERENCES IN THE ROLE OF FISCAL POLICY JAPAN'S FINANCE MINISTRY TAKES A DIM VIEW OF CALLS FOR FISCAL STIMULUS UNTIL RECENTLY THOUGH IT HAD SEEMED THE MINISTRY MIGHT BE OVERRULED FOR THE PAST SEVERAL WEEKS SOME OF THE MOST POWERFUL POLITICIANS IN JAPAN'S LONGRULING LIBERAL DEMOCRATIC PARTY HAVE BEEN ATTEMPTING TO DRUM UP SUPPORT FOR A KINGSIZED FISCAL PACKAGE THERE HAS BEEN TALK OF TRILLIONS OF YEN IN INCOME TAX CUTS AS WELL AS HEAVY GOVERNMENT INVESTMENT IN SOCIAL CAPITAL HOSPITALS UNIVERSITIES AND TELECOMMUNICATIONS IN ADDITION TO TRADITIONAL PROJECTS SUCH AS ROADS AND BRIDGES SOME POLITICIANS SUGGESTED THE TOTAL PACKAGE MIGHT EVEN BE AS LARGE AS 20 TRILLION YEN MUCH OF THAT SPENDING MAY STILL COME TO PASS BUT ANALYSTS SAY THE SCALE NOW LOOKS MUCH SMALLER THE MOOD HAS CHANGED SAYS SHIGENORI OKAZAKI ASSOCIATE DIRECTOR AT SBCI SECURITIES AND A SPECIALIST IN JAPANESE POLITICS IN THE PAST FEW DAYS HE SAYS THE CORE OF THE PACKAGE HAS GOTTEN SMALLER AND SMALLER WHY THE SHIFT A RECENT FLURRY OF UPBEAT THOUGH INCONCLUSIVE ECONOMIC INDICATORS AND THE BEGINNINGS OF A RECOVERY IN THE BATTERED NIKKEI STOCK AVERAGE HAVE MUCH TO DO WITH IT THOSE DEVELOPMENTS HAVE STRENGTHENED THE MINISTRY'S HAND CONSIDERABLY SAYS MR OKAZAKI DO WE REALLY NEED TO SPEND SO MUCH ASKS AN OFFICIAL IN THE MINISTRY'S TAX BUREAU THE ECONOMY IS IMPROVING THERE HAVE BEEN POSITIVE SIGNS MR MORGAN OF MERRILL LYNCH MORE BEARISH THAN MOST ECONOMISTS HERE THINKS THE FISCAL PACKAGE WILL COME IN ABOUT 15 TRILLION YEN OF WHICH SEVEN TRILLION YEN WILL BE SOCALLED PURE WATER A PACKAGE OF THAT SIZE HE SAYS WOULD KEEP THE ECONOMY FROM CONTRACTING IN THE FISCAL YEAR ENDING MARCH 31 1994 BUT STILL ONLY EXPAND ECONOMIC OUTPUT BY 04 OTHERS SUCH AS MR OKAZAKI FEAR THAT THE SPENDING MEASURE IS BECOMING THE INCREDIBLE SHRINKING STIMULUS PACKAGE HE SAYS REAL NET SPENDING COULD BE MUCH LOWER THAN SEVEN TRILLION YEN LDP LEADERS INSIST THEY ARE SERIOUS ABOUT PULLING THE ECONOMY OUT OF ITS SLUMP ON MARCH 31 THEY PUSHED THROUGH PARLIAMENT A BUDGET FOR THE NEW FISCAL YEAR HOURS BEFORE THE YEAR BEGAN A FEAT THEY HAVEN'T MANAGED IN MORE THAN 20 YEARS TO BE SURE A PACKAGE OF 107 TRILLION YEN OR LARGER WILL DO THE ECONOMY MUCH GOOD EVEN AFTER DISCOUNTING FOR FINANCE MINISTRY WINDOW DRESSING AND IF THE MEASURE ISN'T ENOUGH JAPAN IN CONTRAST TO FISCALLY OVEREXTENDED COUNTRIES LIKE THE US CAN AFFORD TO SPEND A LOT MORE PUBLIC MONEY TO JOLT THE ECONOMY LATER AT A NEWS CONFERENCE PRIME MINISTER MIYAZAWA DISMISSED A QUESTION ABOUT WHETHER PRESIDENT CLINTON WILL FIND JAPAN'S FISCAL STIMULUS PACKAGE ADEQUATE I'M SURE MR CLINTON WILL BE SATISFIED HE SAID 9304020158 930402 GULL LABS POSTS GAINS SALT LAKE CITY GULL LABORATORIES INC SAID AUDITED RESULTS CONFIRMED THAT ITS 1992 NET INCOME DOUBLED AND IT FORECAST A RECORD FIRST QUARTER MILTON ADAIR PRESIDENT AND CHIEF EXECUTIVE OFFICER AT THE MEDICAL EQUIPMENT COMPANY SAID ADDITIONAL DISTRIBUTION CHANNELS AND A PRODUCT LINE EXTENSION WERE FUELING STRONG SALES LAST YEAR NET INCOME WAS 11 MILLION OR 20 CENTS A SHARE UP FROM 540000 OR 10 CENTS A SHARE 9304020156 930402 ADVISERS TO TREASURY CAUTION AGAINST SHIFT TO SHORTER MATURITIES WASHINGTON THE TREASURY'S BONDMARKET ADVISORY PANEL SAID PRESIDENT CLINTON'S PLAN TO SAVE MONEY BY SHORTENING THE AVERAGE MATURITY OF FEDERAL BORROWING COULD RAISE SHORTTERM INTEREST RATES HURTING CORPORATE AND OTHER BORROWERS WITH 50 OF ALL CORPORATE DEBT OUTSTANDING MATURING WITHIN ONE YEAR THE CONSEQUENCES OF DISPROPORTIONATE BORROWING BY THE TREASURY IN THIS MATURITY RANGE WOULD BE MANIFEST THE TREASURY BORROWING ADVISORY COMMITTEE OF THE PUBLIC SECURITIES ASSOCIATION SAID THIS INCREASED INTEREST COST WOULD SPREAD DIRECTLY TO THE PRIVATE SECTOR POTENTIALLY AFFECTING SPENDING INVESTMENT AND GENERAL ECONOMIC ACTIVITY THE COMMITTEE CONSISTING OF 20 BOND MARKET VETERANS YESTERDAY RELEASED ITS REPORT WHICH GREW OUT OF A MEETING CONVENED LAST MONTH AT THE TREASURY'S REQUEST TO DISCUSS MR CLINTON'S PLAN THE CLINTON BUDGET PROJECTS SAVINGS OF 16 BILLION OVER THE NEXT FIVE YEARS FROM BORROWING MORE AT SHORTER MATURITIES AND LESS AT LONGER MATURITIES THE COMMITTEE TRADITIONALLY HAS OPPOSED SUCH PROPOSALS AND IT STILL DOES IT IS AN INAPPROPRIATE POLICY TO AT THIS TIME SHORTEN THE AVERAGE LIFE OF THE NATIONAL DEBT THE REPORT SAID BUT IF THE TREASURY ADOPTS THE PLAN THE COMMITTEE URGED THAT IT SELL FEWER SEVENYEAR AND 10YEAR NOTES AND INCREASE SALES OF TREASURY BILLS WITH MATURITIES OF ONE YEAR OR LESS EXCESSIVE RELIANCE ON SHORTTERM DEBT ALSO COULD STIMULATE MARKET FEARS OF POTENTIAL INFLATION COULD ACTUALLY BECOME A SOURCE OF INFLATION ITSELF AND COULD CONCEIVABLY UNDERMINE MARKET CONFIDENCE IN OVERALL GOVERNMENT POLICY THE PANEL SAID THE TREASURY WHICH ALREADY HAS REDUCED ITS LONGTERM BORROWING OVER THE PAST YEAR HAS PROMISED A DECISION ON THE BORROWING MIX BY MAY DESPITE THE PROJECTED SAVINGS IN THE CLINTON BUDGET AND IN THE CONGRESSIONAL BUDGET RESOLUTION TREASURY SECRETARY LLOYD BENTSEN HAS SAID THE TREASURY DOESN'T PLAN ANY RADICAL CHANGES IN ITS BORROWING PRACTICES 9304020155 930402 TRIAL IN BOMBING AT TRADE CENTER IS SET FOR SEPT 14 BY JONATHAN MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FEDERAL JUDGE OVERSEEING THE WORLD TRADE CENTER BOMBING CASE SET A TRIAL DATE OF SEPT 14 AFTER GOVERNMENT PROSECUTORS SAID THEY NEED AT LEAST 90 MORE DAYS TO ANALYZE RUBBLE TAKEN FROM THE BLAST SITE JUDGE KEVIN T DUFFY TURNED DOWN A REQUEST BY LAWYERS FOR THREE OF THE MEN INDICTED IN THE BOMBING THAT THE GOVERNMENT BE HELD TO THE REQUIREMENT UNDER TEEDY TRIAL ACT TO GO TO TRIAL WITHIN 70 DAYS JUDGE DUFFY SAID THE COMPLEX NATURE OF THE CASE ALLOWED FOR AN EXCEPTION JUDGE DUFFY ALSO IMPOSED A GAG ORDER ON ALL LAWYERS ON THE CASE AND AGENTS WORKING FOR THEM HE SAID THEY AREN'T TO DISCUSS ANY EVIDENCE IN THE CASE WITH REPORTERS GILMORE CHILDERS ONE OF THE ASSISTANT US ATTORNEYS IN NEW YORK HANDLING THE CASE TOLD JUDGE DUFFY THAT THE GOVERNMENT HAS TRANSPORTED 1 1/2 TONS OF RUBBLE FROM THE BOMB SITE TO THE FEDERAL BUREAU OF INVESTIGATION'S LABORATORIES IN WASHINGTON FOR TESTING THAT MATERIAL HAD BEEN SIFTED BY INVESTIGATORS FROM AN INITIAL 4000 TONS OF RUBBLE MR CHILDERS ADDED IN THE MEANTIME MR CHILDERS SAID THE GOVERNMENT WILL START MAKING AVAILABLE TO THE DEFENDANTS OTHER EVIDENCE COLLECTED IN CONNECTION WITH THE BOMBING AS WELL AS PHOTOS SHOWN TO WITNESSES WHO HAVE IDENTIFIED THE DEFENDANTS MR CHILDERS SAID THAT 15 SEARCH WARRANTS HAVE BEEN EXECUTED SO FAR IN THE INVESTIGATION FOUR PEOPLE HAVE BEEN INDICTED FOR THE BOMBING AND A FIFTH HAS BEEN CHARGED BUT NOT YET INDICTED A SIXTH DEFENDANT IS ALSO FACING A TRIAL BEFORE ANOTHER FEDERAL JUDGE ON CHARGES OF OBSTRUCTING THE INVESTIGATION INTO THE BOMBING JUDGE DUFFY ALSO ISSUED A WARRANT FOR THE ARREST OF RAMZI AHMED YOUSEF 25 YEARS OLD WHO LAW ENFORCEMENT OFFICIALS SAID HAS FLED OVERSEAS MR YOUSEF IS ONE OF THE FOUR MEN INDICTED IN THE CASE A SPOKESWOMAN FOR THE IMMIGRATION AND NATURALIZATION SERVICE SAID THAR YOUSEF CAME TO THE US FROM PAKISTAN IN SEPTEMBER MR YOUSEF WAS DETAINED AT JOHN F KENNEDY AIRPORT BECAUSE HE DIDN'T HAVE THE PROPER VISA THE SPOKESWOMAN SAID BUT WAS EVENTUALLY RELEASED BECAUSE THERE WAS NO ROOM TO HOLD HIM PENDING A HEARING ON HIS ASYLUM REQUEST THE SPOKESWOMAN SAID THAT MR YOUSEF MISSED A HEARING SCHEDULED FOR LAST WEEK 9304020154 930402 IMC FERTILIZER TO SETTLE LAWSUIT FOR 180 MILLION BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL NORTHBROOK ILL IMC FERTILIZER GROUP INC AGREED TO PAY 180 MILLION TO SETTLE A LAWSUIT LINKED TO A 1991 PLANT EXPLOSION THAT KILLED EIGHT WORKERS AND INJURED 120 OTHERS THE FERTILIZER CONCERN SAID IT WILL TAKE A CHARGE OF 109 MILLION OR 493 A SHARE FOR THE THIRD QUARTER ENDED WEDNESDAY TO COVER THE SETTLEMENT WITH ANGUS CHEMICAL CO AND ANGUS'S PROPERTY INSURER THE CHARGE ANNOUNCED AS JURY SELECTION WAS UNDER WAY IN A TEXAS STATE COURT IN HOUSTON WILL ALSO COVER AN EARLIERDISCLOSED 327 MILLION SETTLEMENT OF SOME OF THE PERSONALINJURY LAWSUITS SPAWNED BY THE INDUSTRIAL MISHAP THE CHARGE WILL ALSO INCLUDE 98 MILLION TO PAY A FINE IMPOSED BY FEDERAL SAFETY REGULATORS SOME CIVIL PERSONALINJURY SUITS REMAIN OUTSTANDING HOWEVER IMC'S DISCLOSURE DIDN'T COME AS A COMPLETE SURPRISE BECAUSE THE COMPANY HAD SIGNALED IN LATE MARCH THAT ADVERSE PRETRIAL RULINGS HAD DIMMED ITS PROSPECTS FOR A COURT VICTORY DAVID NELSON AN ANALYST WITH THE WASHINGTON ANALYSIS CORP UNIT OF COUNTY NATWEST SECURITIES NOTED IMC SHARES HAVE SLID FROM THE UPPER TO THE LOWER 30S OVER THE PAST SEVERAL DAYS PARTLY IN ANTICIPATION OF A COSTLY SETTLEMENT BUT THIS STOCK STILL HAS FURTHER TO GO ON THE DOWNSIDE HE PREDICTED ON THE NEW YORK STOCK EXCHANGE TRADING IN IMC SHARES WAS HALTED JUST BEFORE THE COMPANY'S ANNOUNCEMENT AND DIDN'T SUBSEQUENTLY RESUME THE LAST TRADE WAS AT 32 OFF 125 CENTS THE EXPENSIVE SETTLEMENT COMES AT A DIFFICULT TIME FOR IMC WHICH HAS BEEN STRUGGLING WITH A MARKET WHERE OVERCAPACITY HAS DRIVEN FERTILIZER PRICES TO THEIR LOWEST LEVEL IN 20 YEARS THE 1991 EXPLOSION BADLY DAMAGED A NITROPARAFFIN PLANT IN STERLINGTON LA WHICH IMC HAD PREVIOUSLY SOLD TO ANGUS BUT CONTINUED TO OPERATE UNDER A MANAGEMENT PACT THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION LEVIED A RECORD 10 MILLION FINE AFTER INVESTIGATING THE BLAST IMC'S SHARE OF THAT PENALTY WAS 98 MILLION ANGUS A BUFFALO GROVE ILL UNIT OF ALBERTA NATURAL GAS CO AND ITS INSURER FILED SUIT SEEKING 280 MILLION IN ACTUAL DAMAGES FOR REPAIRS AND BUSINESS INTERRUPTION AS WELL AS UNSPECIFIED PUNITIVE DAMAGES IMC'S INSURERS HAVE BALKED AT ASSUMING LIABILITY IN THE EXPLOSION THE COMPANY EARLIER REACHED A SETTLEMENT WITH ONE OF ITS INSURERS RECEIVING AN UNDISCLOSED AMOUNT AND SAID YESTERDAY THAT IT IS CONTINUING TO PURSUE ADDITIONAL RECOVERIES FROM ITS REMAINING TWO CARRIERS THE AMOUNT IT HAS RECOVERED HELPED TO TRIM THE SIZE OF THE CHARGE AGAINST RESULTS YESTERDAY'S AGREEMENT REMOVES A SIGNIFICANT ENCUMBRANCE FROM IMC FERTILIZER'S ABILITY TO MOVE FORWARD WITH ITS LONGTERM STRATEGY SAID WENDELL F BUECHE PRESIDENT AND CHIEF EXECUTIVE OFFICER WHILE COSTLY THE AGREEMENT IS MANAGEABLE HE SAID 9304020152 930402 FINANCING BUSINESS ARMOR ALL PRODUCTS CORP ARMOR ALL PRODUCTS CORP SAN FRANCISCO SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A SECONDARY OFFERING OF 45 MILLION COMMON SHARES MORGAN STANLEY & CO IS THE MANAGING UNDERWRITER ALL OF THE SHARES OF THE MAKER OF AUTOMOTIVE PRODUCTS BEING OFFERED ARE OWNED BY MCKESSON CORP OF SAN FRANCISCO WHICH SAID IT WANTED TO FOCUS ON ITS HEALTHCARE OPERATIONS MCKESSON OWNS ABOUT 83 OF THE 21 MILLION SHARES OUTSTANDING OF ARMOR ALL AFTER THE OFFERING MCKESSON WILL OWN ABOUT 61 OF ARMOR ALL'S SHARES 9304020151 930402 MEXICO IS INVITING BIDS FOR THE PRIVATIZATION OF STATE TORTILLA FIRM SPECIAL TO THE WALL STREET JOURNAL MEXICO CITY MEXICO HAS CALLED FOR BIDS IN THE PRIVATIZATION OF STATEOWNED TORTILLA MAKER MAIZ INDUSTRIALIZADO CONASUPO SA KNOWN AS MICONSA UP FOR SALE ARE MICONSA'S FIVE PLANTS THAT PRODUCE CORN DOUGH IN THE TRADITIONAL METHOD FOR THE MANUFACTURE OF TORTILLAS A STAPLE OF THE MEXICAN DIET THEY ARE LOCATED IN THE STATES OF CHIAPAS JALISCO VERACRUZ SINAAND MEXICO THE TREASURY SAID PROSPECTIVE BIDDERS HAVE UNTIL APRIL 30 TO MAKE THEIR OFFERS AND MUST PLACE A 620000 PESO 200323 DEPOSIT FOR EACH PLANT THEY WISH TO BID ON THE PRIVATIZATION WILL BE CARRIED OUT BY THE TREASURY'S DISINCORPORATION UNIT AND MULTIBANCO COMERMEX SA FOREIGNERS WILL BE ALLOWED TO PARTICIPATE BUT ONLY AS MINORITY PARTNERS OF A MEXICAN GROUP TORTILLAS MADE FROM CORN DOUGH REPRESENT ABOUT 70 OF THE MEXICAN MARKET FOR TORTILLAS WITH MORE RECENTLY INTRODUCED CORNFLOUR TORTILLAS ACCOUNTING FOR THE REST YET THE CORNFLOUR PRODUCT WITH ITS MORE ENVIRONMENTALLY FRIENDLY PRODUCTION METHOD HAS BEEN GAINING SHARE IN RECENT YEARS AND IS EXPECTED TO HOLD 45 OF THE MARKET BY 1995 ANALYSTS SAY MEXICO'S TORTILLA INDUSTRY REGISTERED ANNUAL SALES OF ABOUT 3 BILLION IN 1992 MAKING IT ONE OF MEXICO'S LARGEST ANALYSTS COULDN'T IMMEDIATELY PUT A PRICE ON MICONSA BUT DID WARN THAT GOVERNMENT CORN SUBSIDIES TO CORNDOUGH PRODUCERS ARE GRADUALLY BEING PHASED OUT WHICH WILL MAKE THE CORNFLOUR MARKET THAT MUCH MORE COMPETITIVE 9304020150 930402 WHO'S NEWS FIRST PACIFIC NETWORKS INC FIRST PACIFIC NETWORKS INC SUNNYVALE CALIF THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER CRAIG J BRUNET WAS ELECTED TO THE ADDITIONAL POST OF CHAIRMAN AT THIS MEDIA DEVELOPMENT COMPANY HE SUCCEEDS JAMES K GIBBY WHO RESIGNED TO PURSUE ANOTHER BUSINESS OPPORTUNITY 9304020149 930402 MILWAUKEE FINANCIER SETTLES SEC CHARGE OF INSIDER TRADING WASHINGTON A MILWAUKEE FINANCIER WHO ALLEGEDLY LEARNED OF AN IMPENDING BANK TAKEOVER DURING A ROUTINE MEETING ABOUT HIS BANK LOANS AGREED TO SETTLE AN INSIDERTRADING CHARGE JOSEPH J ZILBER NEITHER ADMITTED NOR DENIED THE CHARGE FILED BY THE SECURITIES AND EXCHANGE COMMISSION IN FEDERAL COURT HERE NEVERTHELESS MR ZILBER AGREED TO GIVE UP 184500 IN PROFITS THAT HE EARNED FROM SHARES OF FEDERATED BANK OF WAUWATOSA WIS AND AGREED TO PAY A PENALTY OF 92250 MR ZILBER SAID HE SETTLED THE SEC CHARGE BECAUSE AT 75 YEARS OF AGE I HAVE NO INTEREST IN SPENDING THE REST OF MY LIFE IN LITIGATION THE SEC CHARGED THAT MR ZILBER INCREASED HIS STAKE IN FEDERATED BANK BY 26000 SHARES AFTER LEARNING THAT THE THRIFT WAS A TARGET FOR TAKEOVER BY FIRSTAR CORP OF MILWAUKEE MR ZILBER ALLEGEDLY WAS TOLD OF THE IMPENDING TAKEOVER BY OFFICERS OF A FIRSTAR BANK UNIT AFTER A ROUTINE MEETING ABOUT THE BANK'S FINANCING OF HIS REALESTATE PROJECTS THE OFFICERS FIRST SOLICITED MR ZILBER'S SUPPORT FOR THE TAKEOVER BUT AFTER REALIZING THAT HE WASN'T AWARE OF THE IMPENDING DEAL REPEATEDLY CAUTIONED HIM THAT THE INFORMATION WAS CONFIDENTIAL ACCORDING TO THE SEC COMPLAINT MR ZILBER SUBSEQUENTLY INCREASED HIS STAKE IN FEDERATED BANK TO 156000 OR 94 OF THE THRIFT'S SHARES OUTSTANDING FIRSTAR COMPLETED ITS ACQUISITION OF THE THRIFT IN SEPTEMBER FOR 1974 A SHARE IN CASH STOCK OR A COMBINATION OF THE TWO THE SEC SAID IT IS CONTINUING ITS INVESTIGATION INTO TRADING IN FEDERATED STOCK PRIOR TO THE TAKEOVER 9304020146 930402 WHO'S NEWS BANKAMERICA CORP BANKAMERICA CORP SAN FRANCISCO BARBARA Z OTTO 50 YEARS OLD BANK OF AMERICA GROUP EXECUTIVE VICE PRESIDENT WAS NAMED TO HEAD THIS BANKING COMPANY'S LATIN AMERICA AND CANADA DIVISION REPORTING TO VICE CHAIRMAN DAVID A COULTER SHE SUCCEEDS PETER MCPHERSON 52 BANK OF AMERICA GROUP EXECUTIVE VICE PRESIDENT WHO WAS RECENTLY NAMED HEAD OF PERSONAL TRUST DOMESTIC AND INTERNATIONAL PRIVATE BANKING AND INVESTMENT MANAGEMENT BUSINESS 9304020145 930402 LETTERS TO THE EDITOR PLAN WOULD SUBSIDIZE WORST AUTO DRIVERS TIM W FERGUSON'S MARCH 16 BUSINESS WORLD COLUMN ON PAYATTHEPUMP AUTOMOBILE INSURANCE MOTORISTS OPTING FOR PREMIUM AT THE PUMP OPED PAGE APPEARS TO GIVE THE IDEA MORE CREDIBILITY THAN IT DESERVES THE WRINKLES MR FERGUSON CITES ARE FAR FROM MINOR ACTUARIES TELL US THAT IN MANY STATES THE COST WOULD BE TWO TO THREE TIMES THE 40CENTSAGALLON CHARGE MENTIONED IN SOME PUMPPAY PLANS GASOLINE CONSUMPTION OR MILES DRIVEN IS JUST ONE OF SEVERAL FACTORS AFFECTING THE COST OF INSURANCE OF MORE IMPORTANCE ARE THE DRIVER'S SKILL AND EXPERIENCE THE TYPE OF CAR AND WHERE IT IS DRIVEN INSURANCE COMPANIES HAVE INCORPORATED THESE AND OTHER ELEMENTS INTO CLASSIFICATION SYSTEMS THAT ARE AS FAIR AS POSSIBLE TO EVERYONE THE GOAL IS TO SET A RATE FOR EACH DRIVER THAT BEST REFLECTS THE LIKELIHOOD THAT HE WILL BE INVOLVED IN AN ACCIDENT IN ADDITION TO BOOSTING GASOLINE PRICES PUMPPAY WOULD SCRAP THOSE CLASSIFICATION SYSTEMS IN FAVOR OF SUBSTANTIALLY HIGHER LICENSING AND REGISTRATION FEES TRAFFIC FINES AND TAX CREDITS SUCH A SYSTEM IS CUMBERSOME AND IMPRECISE PUMPPAY'S CHIEF BENEFICIARIES WOULD BE INEXPERIENCED DRIVERS THOSE WITH POOR DRIVING RECORDS AND INDIVIDUALS LIVING IN CONGESTED AREAS THOSE ARE THE PEOPLE WHO ARE MORE LIKELY TO HAVE ACCIDENTS THEY WOULD BE SUBSIDIZED BY AVERAGE AND GOOD DRIVERS PUMPPAY WOULD INJECT GOVERNMENT DIRECTLY INTO THE PRICING AND ADMINISTRATION OF INSURANCE GOVERNMENT AGENCIES GENERALLY ARE NOT RENOWNED FOR CUSTOMER SATISFACTION EFFICIENCY OR COSTMANAGEMENT UNDER PUMPPAY THE ONLY VIABLE ROLE FOR PRIVATE INSURANCE COMPANIES WOULD BE TO PROVIDE CLAIMS SERVICES UNDER CONTRACTS AWARDED AFTER STATECONTROLLED BIDDING THIS PROCESS WOULD LEAD TO CARTELLIKE ECONOMICS WHICH WOULD NOT BE IN THE BEST INTEREST OF CONSUMERS MUCH OF THE SUPPOSED SAVINGS IN ANDREW TOBIAS'S PUMPPAY PLAN ACTUALLY AMOUNTS ONLY TO SHIFTING MEDICAL TREATMENT FROM AUTO INSURANCE TO HEALTH INSURANCE PLANS UNDERLYING COSTS DRIVING BOTH OF THOSE INSURANCE SYSTEMS ARE NOT ADDRESSED AT ALL THAT IS WHERE WE SHOULD BE DIRECTING OUR ATTENTION AS WELL AS CAR REPAIR AND LITIGATION COSTS THE SMOKE AND MIRRORS OF PUMPPAY BENEFITS NO ONE PUMPPAY IS BASED ON ITS PROPONENTS' THEORIES OF SOCIAL REDISTRIBUTION RATHER THAN SOUND BUSINESS LOGIC THE PUBLIC NEEDS TO UNDERSTAND THIS FACT WHEN EVALUATING A 25CENTS 40CENTS OR 1 A GALLON INSURANCE SURCHARGE 9304020144 930402 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ECONOMIC UPTURNS IN NORTH AMERICA EUROPE AND JAPAN MAY WEAKEN OR HALT UNLESS MAJOR COUNTRIES COOPERATE TO REVIVE GROWTH AN INTERNATIONAL MONETARY FUND DRAFT REPORT ON THE GLOBAL ECONOMY SAID IMF ECONOMISTS CONTENDED GERMANY SHOULD CUT INTEREST RATES JAPAN SHOULD ENACT A NEW FISCALSTIMULUS PACKAGE AND THE US SHOULD ABANDON PRESIDENT CLINTON'S FISCALSTIMULUS PLAN AND CONCENTRATE ON REDUCING ITS BUDGET DEFICIT THE IMF ESTIMATED THE US ECONOMY WILL GROW 31 THIS YEAR BUT SAID A 32 EXPANSION NEXT YEAR COULD FALTER IF MR CLINTON STUMBLES IN CUTTING THE DEFICIT AND IF LONGTERM INTEREST RATES HEAD UP ECONOMIES IN EUROPE AND JAPAN ARE MUCH WEAKER THAN EXPECTED AND RECESSIONARY TENDENCIES MAY PERSIST AT LEAST THROUGH MIDYEAR FOR 1993 THE IMF HALVED ITS GROWTH PREDICTIONS FOR JAPAN TO 125 AND FOR EUROPE TO 05 IT CUT ITS ESTIMATE FOR CANADA TO A 31 RISE FROM 36 BUT PREDICTED 44 GROWTH IN 1994 LEADING THE SEVEN BIGGEST ECONOMIES JAPAN AND THE EUROPEAN COMMUNITY AGREED TO REDUCE JAPAN'S 1993 CAR EXPORTS TO THE EC BY 94 TO 11 MILLION VEHICLES FROM 1992 A 1991 ACCORD RESTRICTS THE JAPANESE EXPORTS THROUGH 1999 IN A TRANSITION TO AN OPEN EC MARKET THE TWO SIDES AGREED EC DEMAND WILL TOTAL 13 MILLION VEHICLES DOWN 65 FROM 1992 BUT EUROPEAN AUTO MAKERS PREDICTED A 10 DROP IN DEMAND WHICH COULD BOOST JAPAN'S EC MARKET SHARE TO 13 FROM 11 WITHOUT A DEEPER CUT IN SHIPMENTS TO EUROPE TAIWAN PLANS TO FORM ITS FIRST FREETRADE ZONE TO ATTRACT FOREIGN AND DOMESTIC INVESTMENT COMPANIES IN THE INDUSTRIAL PARK ON YUNLIN ISLAND SOUTHWEST OF TAIPEI MAY IMPORT MACHINERY AND MATERIALS FREE OF TAXES CUSTOMS INSPECTIONS AND FINANCIAL RESTRICTIONS THE ZONE WITH A NEW PORT IS AIMED AT LURING INVESTMENT FROM HONG KONG IN 1997 WHEN THE BRITISH COLONY REVERTS TO CHINA IT ALSO IS PART OF TAIWAN'S EFFORTS TO LIBERALIZE TRADE AND RELAX FINANCIAL CONTROLS IN PREPARATION FOR JOINING THE WORLD'S BIG TRADE GROUP MORE THAN 700000 CLAIMS FOR DAMAGE LOSSES AND SUFFERING HAVE BEEN FILED AGAINST IRAQ IN CONNECTION WITH ITS SEVENMONTH OCCUPATION OF KUWAIT THE UNITED NATIONS COMPENSATION COMMISSION IN GENEVA EXPECTS MORE THAN ONE MILLION CLAIMS TOTALING 100 BILLION BY THE JUNE 30 DEADLINE WITH CORPORATE AND GOVERNMENT CLAIMS OUTNUMBERING INDIVIDUAL FILINGS A NINEJUDGE PANEL WILL RECOMMEND AWARDS THE AGENCY SO FAR HAS ONLY 21 MILLION FROM FROZEN IRAQI ASSETS AND IS TRYING TO GET 16 BILLION FROM OIL SALES AUSTRALIA LIFTED SOME CURBS ON REAL ESTATE ACQUISITIONS BY FOREIGN INTERESTS FOREIGNERS MAY BUY RESIDENTIAL PROPERTY FOR RENOVATION WHICH COULD BOOST HOUSING STOCKS AND SPUR URBAN REDEVELOPMENT AND FOREIGNERS WHO ACQUIRE DEVELOPED COMMERCIAL REAL ESTATE NO LONGER NEED 50 AUSTRALIAN OWNERSHIP INDIA UNVEILED AN INCENTIVE TO INCREASE AGRICULTURAL EXPORTS AND EASED MORE CONTROLS ON FOREIGN TRADE ADDING TO LIBERALIZATION MOVES IN THE PAST TWO YEARS TO STIMULATE FARM EXPORTS INDIA WILL ALLOW DUTYFREE IMPORTS BY OPERATIONS IN FRUITS FLOWERS POULTRY SILK FISH AND ANIMAL HUSBANDRY IF THE BUSINESSES EXPORT 50 OF THEIR PRODUCTION THE GOAL IS TO INCREASE FARM SHIPMENTS TO 5 BILLION IN FISCAL 1997 FROM A TARGETED 23 BILLION IN THE YEAR THAT BEGAN YESTERDAY THE GOVERNMENT NOTING OVERALL EXPORTS WEREN'T MEETING TARGETS REMOVED 144 OF 334 ITEMS SUBJECT TO EXPORT RESTRICTIONS PRODUCTS FREED INCLUDE SILK COTTON YARN MEAT FOOD GRAINS AND SUGAR THE NEW POLICY ALSO EASES CONDITIONS AND IMPORT RULES FOR FIRMS TO SPUR OUTPUT FOR EXPORT THE SOVIET BREAKUP EASTERN EUROPEAN TURMOIL AND INDIAN COMMUNAL VIOLENCE CAUSED A COLLAPSE IN INDIAN EXPORTS LAST DECEMBER AND JANUARY THOUGH TRADE WITH FORMER EAST BLOC STATES IS EXPECTED TO PICK UP INDIA HOPES TO REVIVE EXPORTS WITH THE REST OF THE WORLD WHICH ACCOUNT FOR 96 OF THE COUNTRY'S TRADE THE WORLD BANK PLEDGED 800 MILLION IN AID TO EL SALVADOR THIS YEAR FOR DEVELOPMENT PROGRAMS DOCTORS FOR SINGAPORE'S 41YEAROLD DEPUTY PRIME MINISTER LEE HSIEN LOONG SAID HIS LYMPHATIC CANCER IS IN REMISSION AND HE MAY RESUME HIS DUTIES RUMORS THAT HIS CONDITION HAD WORSENED RATTLED FINANCIAL MARKETS BUT RISK OF A RELAPSE DIMINISHED MR LEE'S STANDING AS A FUTURE PRIME MINISTER 9304020143 930402 LETTERS TO THE EDITOR A GRATUITOUS SLAP YOUR MARCH 11 EDITORIAL ON THE HEALTH COMMISSION AND THE HAROLD FORD CASE WHO IS WEBSTER HUBBELLII TOOK A GRATUITOUS SLAP AT MY STATE OF ARKANSAS YOU CONCLUDED THAT THE SUBJECT OF YOUR EDITORIAL ETHICAL LAPSES IN THE CLINTON ADMINISTRATION WAS THE RESULT OF MORES CONDITIONED IN ARKANSAS YOU SHOULD TAKE MORE CARE YOU MAY BE ENTITLED TO COMMENT ON THE ACTIONS OF PUBLIC OFFICIALS BUT IT IS HIGHLY IRRESPONSIBLE FOR YOU TO LAMBASTE THE MORAL FIBER OF AN ENTIRE STATE IN TONES THAT SUGGEST MORE THAN A HINT OF REGIONAL PREJUDICE TO DO SO IS BENEATH YOUR DIGNITY AND A PRIME EXAMPLE OF JOURNALISTIC MYOPIA YOU OWE MY STATE AN APOLOGY 9304020142 930402 STRIDE RITE'S NET DECLINED BY 11 IN FISCAL 1ST PERIOD BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS STRIDE RITE CORP EXPERIENCING SOME DIFFICULTY IN THE MAIN PART OF ITS BUSINESS THE KEDS SHOE LINE SAID FISCAL FIRSTQUARTER EARNINGS DECLINED 11 AND PREDICTED THAT FULLYEAR PROFIT WOULD BE ABOUT EQUAL TO LAST YEAR'S THE COMPANY WHICH ALSO MAKES SPERRY TOPSIDER AND STRIDE RITE SHOES REPORTED NET INCOME OF 151 MILLION OR 30 CENTS A SHARE FOR THE QUARTER ENDED FEB 26 AGAINST 17 MILLION OR 33 CENTS A SHARE A YEAR AGO SALES EDGED UP SLIGHTLY TO 1408 MILLION FROM 139 MILLION IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE STRIDE RITE SHARES WERE QUOTED AT 1850 OFF 75 CENTS THE COMPANY SAID UNITS SHIPPED DURING THE FIRST QUARTER INCREASED 11 BUT SOME OF THE SHOES WERE SOLD AT CLOSEOUT PRICES AND THE NUMBER OF STORES OPERATED BY THE CHILDREN'S DIVISION WAS REDUCED 8 PART OF STRIDE RITE'S PROBLEM HAS BEEN A PROLIFERATION OF ITS POPULAR KEDS LINE WHICH LAST YEAR RANG UP 60 OF THE COMPANY'S OVERALL BUSINESS SEVERAL WHOLESALERS HAVE SOLD THE SHOE TO NONKEDS CUSTOMERS WHO SELL MERCHANDISE AT BELOWMARKET RATES THE SHOES WERE RESOLD PARTLY TO UNLOAD SURPLUS INVENTORIES AND PARTLY BECAUSE OF STRONG DEMAND FOR THE SHOE BY DISCOUNTERS BECAUSE OF THE LOWER PRICES AT THE DISCOUNTERS SOME CONSUMERS HELD OFF KEDS PURCHASES AT DEPARTMENT AND UPSCALE STORES SAID STEVEN FRANKEL AN ANALYST AT ADAMS HARKNESS IN BOSTON TO HELP CONTROL DISTRIBUTION STRIDE RITE IS SHIPPING 700000 PAIRS OF A SLIGHTLY DOWNSCALE VERSION OF ITS BLUELABEL KEDS LINE CALLED KEDS & CO TO DISCOUNTERS SUCH AS PIC 'N PAY STORES INC AND FAMOUS FOOTWEAR SAID JOHN KELLIHER STRIDE RITE'S TREASURER AND VICE PRESIDENT FINANCE INVOLVING LIMITED NUMBERS THE INTRODUCTION THIS SPRING IS STRICTLY EXPERIMENTAL AS THE COMPANY ATTEMPTS TO WEED OUT PROBLEMS IN OUR DISTRIBUTION BASE MR KELLIHER ADDED THE COMPANY IS ALSO REBUILDING ITS SPERRY TOPSIDER LINE WHOSE REVENUE DECLINED TO 40 MILLION LAST YEAR FROM 60 MILLION THREE YEARS AGO THE DECLINE HOWEVER FLATTENED LAST YEAR AND THE COMPANY HOPES TO START SEEING INCREASES SOON MR KELLIHER SAID FOR STRIDE RITE 1993 IS GOING TO BE A TRANSITION YEAR MR FRANKEL SAID FISCAL 1993 PROFIT IS EXPECTED TO BE FLATISH VS 1992 BEFORE CHARGES ERVIN SHAMES CHAIRMAN SAID AT THE COMPANY'S ANNUAL MEETING IN BOSTON YESTERDAY THE PROJECTED RESULTS REFLECT A MIX IN THE KEDS DIVISION AND COMPANY EFFORTS TO REDUCE INVENTORY MR SHAMES SAID FISCAL 1993 PROFIT IS EXPECTED TO BE FLATISH VS 1992 ERVIN SHAMES CHAIRMAN SAID AT THE COMPANY'S ANNUAL MEETING IN BOSTON YESTERDAY THE PROJECTED RESULTS REFLECT A MIX IN THE KEDS DIVISION AND COMPANY EFFORTS TO REDUCE INVENTORY MR SHAMES SAID FOR FISCAL 1992 WHICH ENDED NOV 27 STRIDE RITE HAD NET INCOME OF 615 MILLION OR 119 A SHARE AFTER A CHARGE OF 11 MILLION THAT RESULTED FROM MOVING OPERATIONS FROM MASSACHUSETTS TO KENTUCKY 9304020141 930402 MEDIA FCC ANGERS CABLE FIRMS AIDS NETWORKS RERUN PROFITS COULD ENRICH BIG BROADCASTERS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE THREE MAJOR BROADCAST NETWORKS AFTER STRUGGLING FOR TWO DECADES AGAINST FEDERAL RULES DENYING THEM THE RICHES OF THE SYNDICATION BUSINESS WON SWEET RELIEF FROM THE FEDERAL COMMUNICATIONS COMMISSION THE FCC'S MOVE MEANS ABC CBS AND NBC CAN ALMOST IMMEDIATELY BEGIN NEGOTIATING FOR OWNERSHIP STAKES IN THE PROGRAMS SUPPLIED BY HOLLYWOOD STUDIOS AND INDEPENDENT PRODUCERS AS WELL AS A SHARE OF THE MILLIONS OF DOLLARS IN RERUN PROFITS FROM THOSE SHOWS PERHAPS MORE IMPORTANTLY THOUGH THE MOVE BY THE FCC COULD EVENTUALLY RAZE THE BARRIERS THAT HAVE BLOCKED MERGERS BETWEEN NETWORKS AND STUDIOS IN VOTING TO LIFT MANY OF THE RESTRICTIONS OF THE SOCALLED FINANCIAL INTEREST AND SYNDICATION RULES THE FCC REVERSED ITS OWN DECISION OF MORE THAN A YEAR AGO IN JUNE 1991 IT PASSED ONLY A MILD EASING OF THE RULES A DECISION THAT WAS LATER HARSHLY CRITICIZED AND THROWN OUT BY A FEDERAL APPEALS COURT ORDERED TO RECONSIDER THE ISSUE THE FCC YESTERDAY CAVED IN ON MANY ASPECTS THE NETWORKS WILL NOW BE ALLOWED TO OWN A STAKE IN SHOWS PROVIDED BY OUTSIDERS SHARE FULLY IN RERUN SALES WHEN THE SHOWS MOVE INTO SYNDICATION AND PRODUCE AND OWN AS MUCH OF THEIR PRIMETIME LINEUPS AS THEY WANT ALL OF THOSE RIGHTS HAD BEEN DENIED UNDER THE ORIGINAL RULES ADOPTED IN 1970 AND THE REVISED MEASURES THE FCC PASSED IN 1991 THE FCC RULES IMPOSED IN AN ERA WHEN CABLE WAS ALL BUT NONEXISTENT AND THE NETWORKS CONTROLLED 95 OF THE PRIMETIME AUDIENCE ESSENTIALLY PROHIBITED MERGERS BETWEEN STUDIOS AND NETWORKS WALL STREET LOVES THE IDEA OF PARAMOUNT COMMUNICATIONS INC OR WALT DISNEY CO BUYING NBC FROM GENERAL ELECTRIC CO OR SAY A MERGER OF CAPITAL CITIES/ABC INC AND PARAMOUNT BUT NO SUCH DEALS HAVE HAPPENED BECAUSE THE FCC RULES BAR A NETWORK FROM SYNDICATION A BOOMING BUSINESS WITH 43 BILLION A YEAR IN REVENUE IN THE US ALONE THE FCC WOULD HAVE REQUIRED THE HOLLYWOOD ENTITIES OR OTHER WOULDBE SUITORS LIKE VIACOM INC AND TURNER BROADCASTING SYSTEM INC TO SHED THEIR SYNDICATION OPERATIONS BUT PARAMOUNT EARNS PROFITS RIVALING THOSE OF THE BIG THREE TV NETWORKS BY SYNDICATING SUCH SHOWS AS STAR TREK THE NEXT GENERATION ENTERTAINMENT TONIGHT ARSENIO AND OTHER FIRSTRUN FARE IN YESTERDAY'S DECISION THE FCC STOPPED SHORT OF LETTING THE NETWORKS DIRECTLY SYNDICATE PROGRAMS INSTEAD OF SELLING SERIES RERUNS INCLUDING THOSE THEY OWN 100 TO INDIVIDUAL STATIONS THEY MUST LET AN OUTSIDE COMPANY DO THE SELLING AND THEN SHARE IN THE PROCEEDS EVEN ON THAT POINT THOUGH THE NETWORKS MAY SOON GET RELIEF THE FCC SAID ALL SYNDICATION RESTRICTIONS WILL EXPIRE PENDING A REVIEW TWO YEARS FROM THE DATE OF AN UPCOMING US DISTRICT COURT RULING THAT PROCEEDING IS EXPECTED TO LIFT CONSENT DECREES AGREED TO BY THE NETWORKS IN 1980 THAT INVOKED MOST OF THE OLD FINSYN PROVISIONS THAT THE FCC ESSENTIALLY ABANDONED YESTERDAY YESTERDAY'S RULING PROVOKED STRONG REACTIONS FROM BOTH SIDES OF THE BITTER AND LONGRUNNING DEBATE HOLLYWOOD SAID THE RULING WILL ESSENTIALLY MEAN THE END OF THE WORLD FOR INDEPENDENT PRODUCERS THE NETWORKS COMPLAINED THAT THE FCC STILL HASN'T GONE NEARLY FAR ENOUGH THEY HAVE NOW JUST WIPED EVERY INDEPENDENT PRODUCER OUT SAID ROBERT DALY CHAIRMAN OF TIME WARNER INC'S WARNER BROS STUDIO AND COCHAIRMAN OF THE HOLLYWOOD COALITION THAT WAS FORMED TO PRESERVE THE FCC RULES THE NETWORKS CAN GO BACK TO THEIR OLD HABITS OF TAKING RIGHTS AND INTERESTS IN TELEVISION PROGRAMS IN RETURN FOR GIVING PRODUCERS ACCESS TO THE NETWORKS BUT NBC PRESIDENT ROBERT WRIGHT SAW IT DIFFERENTLY IF I WAS AN INDEPENDENT PRODUCER THIS WOULD BE MY HAPPIEST DAY HE SAID BECAUSE THE CHANGE IN RESTRICTIONS WILL LIKELY MAKE INVESTMENT IN INDEPENDENT PRODUCERS AN ATTRACTIVE OPTION FOR NBC WHEN THE 199495 DEVELOPMENT SEASON GEARS UP NEXT FALL NETWORK EXECUTIVES WHILE EXPRESSING GRATITUDE FOR RELIEF ON THE FINANCIALINTEREST SIDE OF THE ISSUE COMPLAINED BITTERLY ABOUT THE RESTRICTIONS ON ACTIVE SYNDICATION INDEED THE FCC EVEN RETREATED SOMEWHAT FROM THE REVISIONS IT IMPOSED IN 1991 BACK THEN IT WOULD HAVE LET THE NETWORKS THEMSELVES SYNDICATE THE 40 OF THE PRIMETIME SCHEDULE THAT THEY WERE ALLOWED TO PRODUCE THEMSELVES NOW THEY ARE FREE TO PRODUCE 100 OF THE SCHEDULE AN UNLIKELY SCENARIO BUT THEY CAN'T SYNDICATE ANY OF IT AT LEAST UNTIL THE RULES EXPIRE IN TWO YEARS CBS INC IN A STATEMENT CALLED THE REVERSAL ABSOLUTELY UNJUSTIFIED AND IMPOSSIBLE TO UNDERSTAND IN THE LIGHT OF THE REALITIES OF THE MARKETPLACE MOREOVER THE FCC'S LATEST PLAN KEEPS THE NETWORKS OUT OF ONE OF THE MOST ACTIVE AREAS OF THE TELEVISION BUSINESS TODAY FIRSTRUN SYNDICATION IN WHICH PRODUCERS TAKE NEW PROGRAMS SUCH AS STAR TREK DEEP SPACE NINE AND VETERAN GAME SHOWS LIKE WHEEL OF FORTUNE DIRECTLY TO THE SYNDICATION MARKET BYPASSING THE NETWORKS IT LIMITS OUR OPTIONS COMPLAINED DAVID WESTIN GENERAL COUNSEL FOR CAPITAL CITIES/ABC THIS BATTLE HAS YET TO BREATHE ITS LAST BREATH HOWEVER THE APPEALS COURT THAT THREW OUT THE REVISED RULES WILL REVIEW THE FCC'S LATEST EFFORT THEN THE FCC WILL REREVIEW ITS OWN VOTE GIVING BOTH SIDES YET ANOTHER SHOT AT LOBBYING NO ONE KNOWS WHETHER THE OUTLOOK WILL CHANGE WHEN THE CLINTON ADMINISTRATION APPOINTS NEW MEMBERS TO THE COMMISSION IN COMING MONTHS AND HOLLYWOOD IS SURE TO TAKE ADVANTAGE OF THE FCCMANDATED REVIEW THAT IS TO TAKE PLACE BEFORE THE TWOYEAR SUNSET KICKS IN WE ARE GOING TO WATCH OVER THEM VERY CAREFULLY WARNS MR DALY IF THE NETWORKS START ABUSING THE RULES WE'LL GO RIGHT BACK WE'LL BE RIGHT ON TOP OF THEM BUT THE RULING YESTERDAY WAS UNQUALIFIED GOOD NEWS FOR ONE ENTITY NEWS CORP'S FOX NETWORK WHICH THE FCC SAID WAS EXEMPT FROM ALMOST ALL RESTRICTIONS BECAUSE IT IS AN EMERGING NETWORK RATHER THAN ONE OF THE BIG THREE PREVIOUSLY FOX BROADCASTING CO WHOSE SISTER COMPANY TWENTIETH TELEVISION IS HEAVILY INVOLVED IN THE SYNDICATION BUSINESS WAS GOING TO BE SUBJECT TO THE FINSYN RULES ONCE IT BEGAN AIRING MORE THAN 15 HOURS OF PRIMETIME SHOWS A WEEK A THRESHOLD FOX WILL PASS IN JUNE BUT THE FCC DECIDED YESTERDAY THAT FOX BROADCASTING WILL BE EXEMPT NO MATTER HOW MANY HOURS IT PRODUCES THE COMPANY THEREBY REAPS A FORTUNE AIRING THE SIMPSONS ON THE NETWORK AND ANOTHER FORTUNE SELLING THE CARTOON SERIES IN SYNDICATION THAT GIFT FROM THE FCC DREW HARSH CRITICISM FROM FOX'S COMPETITORS BUT FOX SENIOR VICE PRESIDENT PRESTON PADDEN SAID THAT THE SNIPING WAS UNFAIR AND THAT FOX ITSELF HAD BEEN A CATALYST FOR DEREGULATION FOR ALL THE NETWORKS WE HAVE NEVER SOUGHT AND DO NOT NOW SEEK ANY REGULATORY ADVANTAGE OVER ANYONE HE ADDED SEE RELATED ARTICLE BILLIONDOLLAR ROLLBACK IS SET FOR CABLE RATES WSJ APRIL 2 1993 9304020140 930402 YOUR MONEY MATTERS WEEKEND REPORT SAFE BUT SORRY AMERICA'S MOST EXPENSIVE CASH BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL YOU MAY BE PAYING DEARLY FOR THE SAFETY AND CONVENIENCE OF KEEPING YOUR MONEY IN CASH MANY INVESTORS ARE FORKING OVER ANNUAL FEES OF 2 3 AND SOMETIMES MORE WHEN THEY CHOOSE THE SAVINGS OPTIONS OFFERED WITH SOME OF TODAY'S HOTTEST INVESTMENT PRODUCTS BROKERAGEFIRM WRAP PROGRAMS VARIABLE ANNUITIES AND VARIABLE LIFE INSURANCE AS WELL AS SOME EMPLOYERSPONSORED RETIREMENT INVESTMENTS TYPICALLY LEVY FEES EVEN ON THE MONEY THAT INVESTORS KEEP IN CASH MONEYMARKETTYPE ACCOUNTS INVESTORS OFTEN OPT FOR THESE ACCOUNTS FOR SAFETY THEY JUST DON'T WANT TO TAKE THE RISKS THAT COME WITH INVESTING IN STOCKS AND BONDS AND STOCK AND BOND FUNDS OR THEY LEAVE THE MONEY IN CASH AS A CONVENIENT PARKING PLACE UNTIL THEY CAN DECIDE WHAT TO DO AND SOMEHOW NEVER GET AROUND TO DOING ANYTHING BUT THE FEES THAT INVESTORS WIND UP PAYING ON THIS CASH CAN WIPE OUT THE MISERABLY LOW RETURNS OF 25 OR SO THEY CURRENTLY ARE EARNING ON THEIR MONEY AND WHEN INFLATION IS FACTORED IN EVEN AT TODAY'S LOW RATE MANY INVESTORS ARE GOING DEEPER INTO THE HOLE EACH MONTH SOME OF THE MOST EXPENSIVE PLACES TO PARK CASH ARE IN MONEYMARKET FUNDS IN VARIABLE LIFE INSURANCE AND VARIABLE ANNUITY PRODUCTS THESE ARE TAXDEFERRED SAVINGS VEHICLES SOLD BY LIFE INSURANCE AND BROKERAGE FIRMS THAT INCLUDE A HANDFUL OF STOCK BOND AND MONEYMARKET FUNDS AMONG WHICH INVESTORS CAN ALLOCATE THEIR MONEY THE MONEY IN THE MONEYMARKET ACCOUNTS EARNS RATES LIKE THOSE ON MONEYMARKET MUTUAL FUNDS BUT INVESTORS PAY ANNUAL FEES TO BE IN THESE CONTRACTS WHICH REDUCES THEIR RETURN THESE CONTRACT CHARGES TOTAL ABOUT 082 ANNUALLY ON VARIABLE LIFE AND 125 ON VARIABLE ANNUITIES ACCORDING TO MORNINGSTAR INC A CHICAGO FIRM THAT TRACKS MUTUAL FUNDS AND VARIABLE INSURANCE PRODUCTS WHEN THE ANUAL MANAGEMENT FEES OF THE MONEYMARKET FUNDS ARE ADDED TO THE CONTRACT CHARGES THE AVERAGE TOTAL COST TO INVESTORS OF BEING IN THE CASH ACCOUNTS IS 13 IN VARIABLE LIFE AND 165 IN VARIABLE ANNUITIES IT'S A VERY EXPENSIVE WAY TO INVEST IN A MONEY MARKET SAYS KURT CERULLI A BOSTON CONSULTANT WHO ANALYZES FINANCIAL PRODUCTS FOR FINANCIAL INSTITUTIONS IN THE PROCESS OF DEVELOPING NEW BUSINESS SOME CHARGE A LOT MORE THAN OTHERS NEW YORK DELAWARE ANNUITY CHARGES A TOTAL OF 22 AND AMERICA SKANDIA ASAP CHARGES A TOTAL OF 215 THE HIGHEST IS WASHINGTON MUTUAL WHILE ITS CONTRACT CHARGES ARE 12 THE MONEYMARKET EXPENSES ARE 282 BRINGING THE TOTAL COST TO 402 THEY'RE A DECENT ANNUITY BUT THE MONEYMARKET SCREAMS STAY AWAY' SAYS JENNIFER STRICKLAND EDITOR OF MORNINGSTAR'S VARIABLE ANNUITY REPORT TO BE FAIR WASHINGTON MUTUAL IS IN THE PROCESS OF PHASING OUT THE FUND AND IS ENCOURAGING INVESTORS TO SWITCH OUT OF IT WHAT ABOUT THE BENEFIT OF THE TAX DEFERRAL IN THE VARIABLELIFE OR ANNUITY ACCOUNT WHILE THAT IS IMPORTANT INVESTORS COULD ACHIEVE THE SAME THING BY PUTTING THEIR MONEY IN A TAXEXEMPT MONEY FUND THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXFREE FUNDS WAS 192 LAST WEEK ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER THIS IS EQUIVALENT TO A TAXABLE YIELD OF 286 FOR SOMEONE PAYING 31 IN TAXES AN EVEN MORE EXPENSIVE PLACE TO PARK CASH IS IN WRAP ACCOUNTS OFFERED BY BROKERAGE FIRMS WRAP ACCOUNTS WHICH HAVE ATTRACTED NEARLY 90 BILLION FROM INVESTORS COMBINE THE SERVICES OF A PROFESSIONAL MONEY MANAGER WHO CREATES A PORTFOLIO OF STOCKS AND BONDS AND TAKES CARE OF ALL OF THE TRADING BROKERAGE COMMISSIONS AND MONEY MANAGEMENT ARE WRAPPED INTO ONE FLAT FEE TYPICALLY 3 OF ASSETS ANNUALLY INVESTORS WHO HAVE CASH IN THEIR ACCOUNTS ARE THEREFORE PAYING 3 ON THAT PORTION PLUS ANNUAL MANAGEMENT FEES OF 075 TO 08 BRINGING THE INVESTOR'S TOTAL COST ON THE CASH TO AS MUCH AS 38 SOME FIRMS INCLUDING DEAN WITTER REYNOLDS INC EXCLUDE CASH FROM THE ANNUAL 3 WRAP FEE DON'T HAVE AN ANNUITY OR A WRAP ACCOUNT YOU STILL MIGHT BE MAKING A COSTLY CASH MISTAKE IN YOUR RETIREMENT ACCOUNTS INCLUDING 401K PROFITSHARING AND 403B PLANS MOST EMPLOYEES AREN'T AWARE THAT THEIR COMPANYSPONSORED RETIREMENT ACCOUNTS HAVE ANNUAL FEES THAT REDUCE WHAT THEY EARN IN THE ACCOUNTS UNFORTUNATELY IT ISN'T UNUSUAL FOR SOME EMPLOYEES TO KEEP HALF OF THEIR RETIREMENT MONEY IN CASH RETIREMENT PLANS WITH THE HIGHEST EXPENSES OFTEN INCLUDE THOSE FUNDED WITH WRAP ACCOUNTS AND LIFE INSURANCE PRODUCTS SUCH AS VARIABLE ANNUITIES FOR EXAMPLE SOME OF THE VARIABLE ANNUITIES AETNA LIFE INSURANCE & ANNUITY CO SUPPLIES FOR SCHOOL SYSTEMS AND OTHER EMPLOYERS CHARGE A TOTAL OF BETWEEN 161 AND 206 ON MONEYMARKET ACCOUNTS PRINCIPAL MUTUAL LIFE INSURANCE CO'S PENSION BUILDER WHICH IS USED BY SELFEMPLOYED INDIVIDUALS CHARGES A TOTAL 209 ON CASH EVEN SOME OF TODAY'S MORE MUNDANE INVESTMENT PRODUCTS CAN HAVE COSTLY CASH IT ALSO IS IMPORTANT FOR INVESTORS TO KEEP AN EYE ON WHAT OTHER MONEYMARKET AND CASH ACCOUNTS ARE RETURNING CUSTOMERS WITH BROKERAGE ACCOUNTS AT FIDELITY INVESTMENTS COULD EARN NOTHING TO NEARLY 3 ON CASH BALANCES IN THEIR BROKERAGE ACCOUNTS IF THEY FAIL TO DESIGNATE A MONEYMARKET ACCOUNT CASH BALANCES UP TO 2500 PAY NO INTEREST AMOUNTS TO 10000 EARN 255 WHILE THE RATE ON LARGER AMOUNTS IS CURRENTLY 259 BY COMPARISON THE CASH RESERVES MONEYMARKET FUND AVAILABLE TO FIDELITY BROKERAGE CUSTOMERS CURRENTLY YIELDS 295 REGARDLESS OF THE AMOUNT INVESTED AT MERRILL LYNCH CASH IS KEPT ONLY IN MONEYMARKET FUNDS THE LOWEST YIELDING IS CURRENTLY RETURNING 251 WHILE THE HIGHEST YIELDING RETURNS 291 THE BIG DRAG ON MONEYFUND RETURNS IS THE FIRMS' MANAGEMENT FEE AVERAGE ANNUAL EXPENSE ON TAXABLE MONEY MARKETS ARE 062 ACCORDING TO MONEY FUND REPORT BUT SOME ARE SIGNIFICANTLY HIGHER MONEY FUNDS WITH THE HIGHEST ANNUAL EXPENSES INCLUDE DECLARATION CASH ACCOUNT WITH ANNUAL FEES OF 177 VAN ECK US GOVERNMENT WITH FEES OF 148 OPPENHEIMER CASH RESERVES 144 GT DOLLAR FUND AT 125 AND TEMPLETON AT 117 NOT SURPRISINGLY THESE ARE AMONG THE LOWEST YIELDING MONEY FUNDS AFTER EXPENSES ARE TAKEN OUT INVESTORS IN DECLARATION ARE CURRENTLY RECEIVING 111 ACCORDING TO MONEY FUND REPORTS 9304020139 930402 THE AMERICAS IS THERE LIFE AFTER 936 IN PUERTO RICO BY IRENE PHILIPPI DE SOTO SAN JUAN PUERTO RICO'S POLITICAL AND BUSINESS LEADERS WERE STUNNED WHEN THE CLINTON ADMINISTRATION HINTED THAT IT MIGHT PHASE OUT SECTION 936 OF THE TAX CODE WHICH EXEMPTS US MANUFACTURING PROFITS IN PUERTO RICO FROM FEDERAL TAXATION HOWEVER MEMBERS OF NEW GOV PEDRO ROSSELLO'S ADMINISTRATION ARE PREPARING REFORMS THAT HAVE THE POTENTIAL OF MORE THAN REPLACING WHAT WASHINGTON MAY TAKE AWAY BENEFICIAL AS IT WAS TO PUERTO RICO'S DEVELOPMENT THE 936 EXEMPTION PROVED TO BE A MIXED BLESSING LOCAL GOVERNMENTS SEEMED COMPELLED TO BALANCE TAX BREAKS FOR MAINLANDERS WITH TAX HITS ON LOCAL PRODUCERS WHILE US MANUFACTURING FIRMS AND SOME OTHER FAVORED ENTERPRISES HAVE BEEN PAYING A CORPORATE TAX RATE OF ONLY 45 PUERTO RICAN ENTREPRENEURS FACE A 42 TOP CORPORATE TAX RATE PLUS A VARIETY OF OTHER TAXES THAT BRING THE MARGINAL TAX RATE ON ENTREPRENEURS CLOSE TO 80 DURING SIX MONTHS OF WORK WITH A CONSORTIUM OF PRIVATE COMPANIES AND THE GOVERNMENT DEVELOPMENT BANK MY COLLEAGUES AND I CONCLUDED THAT IF THE NEW PUERTO RICAN GOVERNMENT COMMITS ITSELF TO WHOLESALE TAX AND REGULATORY REFORM THE ISLAND COMMONWEALTH COULD EXPERIENCE AN ECONOMIC BOOM AND INCREASE ITS TAX REVENUE IN THE PROCESS ALTHOUGH PUERTO RICAN BUSINESSMEN ARE WORLDCLASS MANAGERS THEIR SUCCESS IS TEMPERED BY ENORMOUS OBSTACLES TO BEGIN WITH THEY MUST FIND THEIR WAY THROUGH A REGULATORY QUAGMIRE THAT CAN TAKE MORE THAN A YEAR TO ISSUE REQUIRED PERMITS EVEN SMALL BUSINESSES FREQUENTLY EMPLOY ONE PERSON TO DEAL FULL TIME WITH REGULATORY AGENCIES NOT SURPRISINGLY THOUSANDS OF PUERTO RICAN ENTREPRENEURS AND PROFESSIONALS HAVE CHOSEN TO RELOCATE TO THE US MAINLAND FOR THOSE BUSINESSES THAT STAY PATIENCE IS A NECESSITY IF A PUERTO RICAN WISHES TO RISK TIME AND EFFORT IN DEVELOPING A COMMERCIAL MALL FOR EXAMPLE A FEASIBILITY PROJECT MUST BE PRESENTED TO PUERTO RICO'S COMMERCE DEPARTMENT IF THAT DEPARTMENT ENDORSES THE PROJECT IT WILL BE PASSED ON TO THE PLANNING BOARD THE DEPARTMENT OF NATURAL RESOURCES REGULATIONS AND THE PERMIT AUTHORITY ARPE THIS PROCESS MAY TAKE THREE TO 12 MONTHS PAST THAT BARRIER THE APPLICATION IS RESUBMITTED TO THE COMMERCE DEPARTMENT AND THE PLANNING BOARD WHILE THE APPLICANT MUST NEGOTIATE WITH THE ARPE OVER ENVIRONMENTAL REGULATIONS ALL THIS CAN TAKE AN ADDITIONAL YEAR AND A LOT OF OUTOFPOCKET EXPENSES WEALTHY ENTERPRISES USUALLY CAN AFFORD LAWYERS' AND CONSULTANTS' FEES FOR THIS PROCESS BUT MANY SMALL AND MEDIUMSIZED FIRMS CANNOT THE COMPLEXITY OF REGULATIONS LEADS TO A VERY LOW LEVEL OF ENFORCEMENT FOR EXAMPLE WE WERE TOLD THAT THE PLANNING BOARD'S ZONING CODE PROHIBITS BUILDINGS LARGER THAN A CERTAIN SIZE TO DISPLAY SIGNS ON THEIR ROOFS BUT ANYONE STROLLING AROUND SAN JUAN CAN ATTEST TO WIDESPREAD NONCOMPLIANCE ACCORDING TO THE CODE STORES ALONG PINERO AVENUE ARE TECHNICALLY ILLEGAL THOUGH BUSINESS THERE IS BOOMING INDEED PUERTO RICO'S UNDERGROUND ECONOMY IS ENORMOUS IN THIS RESPECT THE ISLAND'S ECONOMY MORE RESEMBLES MEXICO'S OR ARGENTINA'S THAN THE US'S A CAREFUL EXAMINATION OF EMPLOYMENT AND TAX DATA PRODUCES STRIKING CONCLUSIONS THE BROADEST MEASURE OF EMPLOYMENT SOCIAL SECURITY REGISTRATION IS ROUGHLY TWICE AS LARGE AS THE NUMBER OF EMPLOYED INDIVIDUALS PAYING INCOME TAX PERHAPS AS MANY AS ONE OUT OF THREE EMPLOYED PUERTO RICANS REPORT NO INCOME AT ALL AND THE MAJORITY OF TAXPAYERS UNDERREPORT SOME INCOME BY OUR ESTIMATES THE PUERTO RICAN TREASURY COLLECTS ONLY 40 TO 50 OF THE TAX REVENUES DUE UNDER EXISTING LAW TAX REVENUE SHORTAGES THOUGH ARE THE LEAST OF THE PROBLEMS OF WIDESPREAD UNDERGROUND ACTIVITY PRODUCTIVITY IN THE INFORMAL SECTOR IS EXTREMELY LOW BUSINESSES MUST LIMIT THEIR ADVERTISING AND THEY HAVE EXTREME DIFFICULTY EXPANDING TO TAKE ADVANTAGE OF ECONOMIES OF SCALE AND IT'S IMPOSSIBLE TO OBTAIN CAPITAL FROM ANYONE BUT NEIGHBORHOOD LOAN SHARKS HOW RAPIDLY THIS UNDERUTILIZED POOL OF HUMAN CAPITAL CAN BE TAPPED BECAME CLEAR IN THE WAKE OF PUERTO RICO'S 1987 TAX REFORM REVISED DATA HAVE JUST BECOME AVAILABLE WHICH EXPLAIN WHY THIS STRIKING EXAMPLE OF THE LAFFER CURVE HAS NOT YET BECOME A TEXTBOOK EXAMPLE IN PUBLIC FINANCE COURSES AS HAPPENED IN MEXICO AND OTHER LATIN AMERICAN NATIONS WHERE TAX EVASION WAS ENDEMIC LOWERING PUERTO RICO'S TOP MARGINAL TAX RATE ON PERSONAL INCOMEFROM 676 IN 1985 TO 41 IN 1988LED TO A GREATER REVENUE YIELD IN ABSOLUTE TERMS WITH THE BIG TAX CUT OF 1987 PUERTO RICAN TAXPAYERS DECLARED 50 MORE INCOME THAN IN 1986 THE TOTAL NUMBER OF REGISTERED TAXPAYERS INCREASED BY A THIRD EVEN AT LOWER TAX RATES TOTAL TAX REVENUES INCREASED BY AN INCREDIBLE 28 CUTTING MARGINAL TAX RATES ACROSS THE BOARD ALSO SHIFTED MORE OF THE TAX BURDEN ONTO UPPERINCOME TAXPAYERS THE HIGHEST INCOME BRACKETS 30000 AND ABOVE PAID 45 OF PUERTO RICO'S TAXES IN 1986 THE YEAR BEFORE THE BIG REFORM A YEAR LATER THEIR SHARE HAD RISEN TO 62 LOWERINCOME TAXPAYERS NOT ONLY PAID A LOWER SHARE OF TOTAL TAX REVENUES BUT FEWER TAX DOLLARS AFTER ADJUSTMENT FOR INFLATION THUS THE TAX REFORM WAS A MAJOR SUCCESS BOTH IN TERMS OF EFFICIENCY AND EQUITY THESE RESULTS SHOW THAT PUERTO RICO'S ECONOMY RESPONDS DRAMATICALLY TO FISCAL INCENTIVES A GREATER REDUCTION OF THE TOP MARGINAL TAX RATE ON PERSONAL INCOME WOULD FURTHER STIMULATE ENTREPRENEURSHIP AND MAXIMIZE TAX REVENUES CORPORATE TAXATION ALSO NEEDS ADJUSTMENT APART FROM THE PRIVILEGED TAXEXEMPT SECTOR PUERTO RICAN FIRMS ARE TAXED AT HIGHER RATES AS THEY INCREASE IN SIZE RATHER THAN GROW PUERTO RICAN BUSINESSES TEND TO MOVE TO THE MAINLAND OR TO REMAIN FIXED AT ABOUT 10 MILLION IN GROSS REVENUES THE LEVEL AT WHICH A FIRM CAN BE KEPT UNDER CLOSE FAMILY CONTROL AND AVOID TAXATION WIDESPREAD UNDERREPORTING OF REVENUES EXCLUDES SMALL FIRMS FROM THE CAPITAL MARKETS IN FACT ONLY SEVEN PUERTO RICAN FIRMS ARE TRADED PUBLICLY ALTHOUGH PUERTO RICO'S CAPITAL GAINS TAX AT 20 IS LOWER THAN THE MAINLAND'S TAXES ON CAPITAL GAINS MAKE UP LESS THAN HALF A PERCENT OF TOTAL REVENUES ELIMINATION OF THE TAX WOULD PROVIDE AN ENORMOUS BOOST TO ECONOMIC ACTIVITY AND A 10 CAPITAL GAINS TAX WOULD ACTUALLY GAIN LARGE AMOUNTS OF REVENUE PUERTO RICO'S NEW ADMINISTRATION CAMPAIGNED ON A TAXCUTTING PLATFORM AS IT UNDERTAKES FISCAL AND REGULATORY REFORMS THE RESURGENCE OF LOCAL ENTREPRENEURSHIP SHOULD MORE THAN COMPENSATE FOR THE EVENTUAL LOSS OF SECTION 936 AND US MULTINATIONAL FIRMS THAT CAME TO THE ISLAND FOR TAX BREAKS WILL STAY ON BECAUSE OF THE IMPROVING BUSINESS CLIMATE MS PHILIPPI DE SOTO IS AN ECONOMIST WITH POLYCONOMICS INC A MORRISTOWN NJ CONSULTING FIRM 9304020138 930402 INTERNATIONAL REVIEW BY UN IN NORTH KOREA CASE REQUESTED REFUSAL TO ALLOW INSPECTION OF NUCLEAR SITES SPARKS CALL BY ATOMIC AGENCY BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SETTING THE STAGE FOR A NEW INTERNATIONAL DEBATE ON THE SPREAD OF NUCLEAR WEAPONS THE INTERNATIONAL ATOMIC ENERGY AGENCY ASKED THE UNITED NATIONS SECURITY COUNCIL TO REVIEW NORTH KOREA'S REFUSAL TO ALLOW INSPECTIONS OF ITS NUCLEAR FACILITIES AFTER A TWODAY MEETING ON THE ISSUE THE 35MEMBER BOARD OF GOVERNORS OF THE VIENNABASED AGENCY CONCLUDED THAT IT CAN'T CERTIFY THAT NORTH KOREA HASN'T DIVERTED MATERIALS FROM ITS NUCLEAR RESEARCH PROGRAM TO DEVELOP NUCLEAR WEAPONS THE DIFFICULTY OF THE PROBLEM THE IAEA IS NOW HANDING THE UN WAS UNDERLINED BY THE VOTE THE AGENCY'S BOARD NORMALLY DECIDES MATTERS UNANIMOUSLY BUT IN THIS CASE EVEN THOUGH THE AGENCY SAID NORTH KOREA CLEARLY VIOLATED AN AGREEMENT IT MADE TO ALLOW INTERNATIONAL INSPECTION CHINA AND LIBYA OPPOSED SENDING THE ISSUE TO THE UN FOUR OTHER COUNTRIES PAKISTAN INDIA SYRIA AND VIETNAM ABSTAINED THERE WERE 28 VOTES IN FAVOR OF REFERRING THE MATTER TO THE SECURITY COUNCIL PAKISTAN AND INDIA ARE BELIEVED TO HAVE NUCLEAR WEAPONS SYRIA AND VIETNAM ARE AMONG THE FEW NATIONS WHICH HAVE TRADE WITH NORTH KOREA ACCORDING TO THE CENTRAL INTELLIGENCE AGENCY SYRIA HAS BEEN BUYING MISSILES FROM NORTH KOREA CHINA SUPPLIES 40 OF NORTH KOREA'S OIL AS WELL AS MUCH OF ITS CEMENT STEEL AND COTTON WHILE IT COULD VETO ANY SECURITY COUNCIL RESOLUTION TO IMPOSE TRADE SANCTIONS ON NORTH KOREA IT CURRENTLY APPEARS TO BE SEEKING TO DELAY A UN VOTE TO GIVE MORE TIME FOR DIPLOMATIC MANEUVERS CHINESE DIPLOMATS HAVE WARNED REPEATEDLY THAT FORCING THE COMMUNIST NORTH KOREAN REGIME INTO A CORNER MIGHT BE DANGEROUSLY COUNTERPRODUCTIVE DAVID KYD AN IAEA SPOKESMAN SAID THE MAJORITY OF THE AGENCY'S BOARD FELT THAT AFTER REPEATED DIPLOMATIC EFFORTS TIME WAS UP HE ADDED THIS IS THE FIRST TIME IN OUR HISTORY THAT WE'VE HIT A ROADBLOCK ON OUR OWN INVESTIGATIONS HE SAID THE AGENCY WILL STILL PRESS NORTH KOREA TO ALLOW INSPECTIONS SINCE THAT COUNTRY CAN'T WITHDRAW FROM ITS AGREEMENT WITH THE IAEA FOR AT LEAST 90 DAYS AFTER THE IAEA'S DECISION THE US RUSSIA AND BRITAIN ISSUED A JOINT STATEMENT URGING NORTH KOREA TO COMPLY WITH THE AGENCY FOR NORTH KOREA TO WITHDRAW FROM ITS TREATY OBLIGATIONS THE STATEMENT SAID WOULD CONSTITUTE A SERIOUS THREAT TO REGIONAL AND INTERNATIONAL STABILITY LAST WEEK SECRETARY OF STATE WARREN CHRISTOPHER INDICATED THE US MIGHT PRESS FOR SOME TYPE OF TRADE EMBARGO TO PUNISH NORTH KOREA FOR ITS TREATY VIOLATION HE SAID SHIPMENTS OF OIL GAS SOME TYPES OF RAW MATERIALS AND PERHAPS SOME NATURE OF FOOD MIGHT BE BLOCKED THERE ARE SANCTIONS THAT CAN BE EFFECTIVE WITH THEM EVEN THOUGH THEY'VE BEEN VERY ISOLATED HE TOLD A HOUSE SUBCOMMITTEE BUT PETER HAYES AUTHOR OF A BOOK ON NORTH KOREA AND ITS POLICIES SAID THE US AND ITS ALLIES WILL HAVE A DIFFICULT TIME IMPOSING SUCH AN EMBARGO BESIDES GETTING MOST OF ITS OIL FROM CHINA AND IRAN HE SAID PYONGYANG IS LARGELY SELFSUFFICIENT IN FOOD AND THAT NORTH KOREANS COULD STRETCH SUPPLIES WITH BELT TIGHTENING NORTH KOREA ANNOUNCED IN FEBRUARY THAT IT WAS WITHDRAWING FROM THE NUCLEAR NONPROLIFERATION TREATY MR HAYES SAID NORTH KOREAN OFFICIALS TOLD HIM IN NOVEMBER THAT THEY WERE PREPARING TO TAKE THAT STEP IF TEAM SPIRIT A USSOUTH KOREAN MILITARY EXERCISE TOOK PLACE TOP NORTH KOREAN LEADERS HE SAID HAD GENERATED AN ARTIFICIAL CLIMATE OF FEAR THAT THEY WERE ABOUT TO BE ATTACKED EVEN SENIOR PEOPLE IN THE REGIME FELT FRIGHTENED HE SAID MR HAYES WHO SAID HE RELAYED THE NOVEMBER MESSAGE TO US DIPLOMATS SAID HE BELIEVES NORTH KOREA AND SOUTH KOREA COULD RESOLVE THE DILEMMA BY AGREEING JOINTLY ON FACILITIES IN EACH COUNTRY THAT WOULD BE OPEN TO INTERNATIONAL INSPECTORS MR HAYES IS AN ANALYST AT NAUTILUS PACIFIC RESEARCH A CALIFORNIA RESEARCH FIRM IAEA INSPECTORS FOUND EVIDENCE IN JANUARY THAT NORTH KOREA MAY HAVE REMOVED MORE SPENT NUCLEAR FUEL FROM A RESEARCH REACTOR THAN IT HAS ADMITTED THEY ATTEMPTED TO VERIFY THIS BY EXAMINING WHAT APPEARED TO BE TWO NUCLEAR WASTE SITES BUT NORTH KOREAN OFFICIALS OBJECTED ASSERTING THAT THE SITES WERE MILITARY AND UNRELATED TO THE NUCLEAR PROGRAM SOME EXPERTS BELIEVED NORTH KOREA WOULD EASE ITS REFUSAL AFTER THE TEAM SPIRIT EXERCISE ENDED LAST MONTH BUT PYONGYANG HAS NOT BUDGED DESPITE SOME CONCESSIONS OFFERED BY SOUTH KOREA WHERE OFFICIALS ARE ALSO WARY OF A CONFRONTATION WHAT OUR GOVERNMENT IS TRYING TO DO IS TO GIVE NORTH KOREA A CHANCE TO REVERSE ITS DECISION WITHOUT BEING SHRILL OR SHOWING ANY SIGNS OF PANIC SAYS KIM KYONGWONG A SENIOR PARTNER OF THE DAEWOO RESEARCH INSTITUTE IN SEOUL 9304020137 930402 TECHNOLOGY & MEDICINE DRUG CONCERNS EXPRESS ANGER AT PLAN FOR US TO BUY CHILDHOOD VACCINES BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DRUG COMPANIES REACTED ANGRILY TO THE CLINTON ADMINISTRATION'S PROPOSAL TO MAKE THE GOVERNMENT THE SOLE BUYER OF CHILDHOOD VACCINES CLAIMING THAT SUCH A MEASURE WOULD THREATEN THEIR PROFITS AND CONSEQUENTLY THEIR RESEARCH INVESTMENT HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA UNVEILED THE PROPOSAL WHICH WOULD PROVIDE FREE IMMUNIZATIONS TO ALL CHILDREN IN THE US BEFORE THEIR SECOND BIRTHDAY SHE SAID THE ADMINISTRATION IS SUBMITTING LEGISLATION TO AUTHORIZE THE HHS SECRETARY BEGINNING IN FISCAL 1995 TO BUY AS MUCH VACCINE AS IS NEEDED AND GIVE IT TO STATES AND FEDERAL HEALTH CLINICS STATES WOULD IN TURN DISTRIBUTE THE VACCINES TO PRIVATE DOCTORS AND PUBLIC HEALTH FACILITIES WHICH WOULD OFFER IT FREE TO ALL CHILDREN THEY COULD CHARGE FOR THE ADMINISTRATION OF THE SHOT BUT NOT THE VACCINE ITSELF THE ADMINISTRATION FEE WOULD BE WAIVED IF A FAMILY COULDN'T AFFORD IT THE DEPARTMENT ESTIMATES THAT THE VACCINE PURCHASES WILL COST 1 BILLION ANNUALLY ALTHOUGH THE COST ULTIMATELY WILL DEPEND ON THE PRICES THE GOVERNMENT NEGOTIATES WITH MANUFACTURERS THE FINANCING METHOD WILL BE SPECIFIED WHEN THE PRESIDENT UNVEILS HIS PLAN TO OVERHAUL THE HEALTHCARE SYSTEM IN MAY THE GOVERNMENT ALREADY SPENDS MORE THAN 400 MILLION ON VARIOUS IMMUNIZATION PROGRAMS FOR POOR CHILDREN AND MR CLINTON PREVIOUSLY PROPOSED SPENDING 300 MILLION IN THE CURRENT FISCAL YEAR TO IMPROVE AND EXPAND THE SYSTEM FOR DELIVERING VACCINES THE LEGISLATION IS A SOUND AND COSTEFFECTIVE INVESTMENT IN AMERICA'S FUTURE HEALTH AND PRODUCTIVITY MS SHALALA SAID IT WILL BECOME A CORNERSTONE OF THE ADMINISTRATION'S NATIONAL HEALTHCARE REFORM PLAN THE PROGRAM WOULD BE PHASED OUT WHEN A COMPREHENSIVE HEALTHCARE PLAN IS PUT INTO PLACE BUT THE COMPANIES WHO MAKE CHILDHOOD VACCINES WEREN'T ENTHUSIASTIC WHAT THIS UNIVERSAL PURCHASE IS DIRECTED TO BE IS AN ATTEMPT TO CONTROL OUR PRICES AND THIS IMPACTS OUR CONSIDERATION OF VACCINES WE CURRENTLY HAVE UNDER DEVELOPMENT WHICH ARE GOING TO COST US A SIGNIFICANT AMOUNT OF MONEY IN DEVELOPMENT AND IN NEW FACILITY CONSTRUCTION SAID RONALD SALDARINI PRESIDENT OF LEDERLEPRAXIS BIOLOGICALS IF I CAN'T BE SURE THE PURCHASER IS GOING TO ALLOW ME TO PRICE THE PRODUCT AS THE COMPANY SEES FIT HE ADDED I MAY BE UNWILLING TO CONSIDER THAT INVESTMENT OR FURTHER DEVELOPMENT JP GARNIER PRESIDENT OF NORTH AMERICA PHARMACEUTICALS A UNIT OF SMITHKLINE BEECHAM SAID THE COMPANY WAS PLANNING TO INVEST MORE THAN 10 MILLION IN A NEW MANUFACTURING FACILITY FOR PEDIATRIC VACCINES BUT NOW HE SAID WE'RE NOT GOING TO GO AHEAD WITH OUR INVESTMENT UNTIL WE KNOW MORE ABOUT THE WAY THE PURCHASING SYSTEM WILL BE ADMINISTERED MR GARNIER WAS WORRIED THAT THE GOVERNMENT WOULD ASK FOR BIDS FROM ALL VACCINE MAKERS AND ACCEPT ONE PUTTING THE OTHERS OUT OF BUSINESS IF THE GOVERNMENT CONTRACTS WITH MULTIPLE VACCINE PRODUCERS HE SAID HIS COMPANY WOULD BE LESS ADAMANTLY OPPOSED TO THE MEASURE THE COMPANIES PRAISED OTHER ASPECTS OF THE BILL WHICH WOULD GIVE GRANTS TO STATES TO SET UP A NATIONAL TRACKING SYSTEM TO MAKE SURE ALL CHILDREN GET THE APPROPRIATE SHOTS AT THE RECOMMENDED AGES WE ARE ENCOURAGED THAT THE ADMINISTRATION IS PROPOSING SUCH A SYSTEM MERCK & CO SAID IN A STATEMENT CURRENTLY FEWER THAN 63 OF TWOYEAROLDS IN THE US HAVE RECEIVED ALL THE IMMUNIZATIONS RECOMMENDED FOR CHILDREN OF THAT AGE MS SHALALA SAID AND IN SOME INNER CITIES THE VACCINATION RATE IS AS LOW AS 10 AS A RESULT DISEASES THAT WERE THOUGHT TO HAVE BEEN ERADICATED HAVE RECENTLY RETURNED TO STRIKE TENS OF THOUSANDS OF CHILDREN BETWEEN 1989 AND 1991 MORE THAN 55000 PEOPLE WERE STRICKEN WITH MEASLES BECAUSE OF INADEQUATE VACCINATION JOINING MS SHALALA IN ANNOUNCING THE IMMUNIZATION PROGRAM WERE A THRONG OF DEMOCRATIC LAWMAKERS AND MARIAN WRIGHT EDELMAN PRESIDENT OF THE CHILDREN'S DEFENSE FUND WHICH HAS LONG PUSHED FOR A UNIVERSAL IMMUNIZATION PROGRAM WE CANNOT ALLOW CHILDREN TO DIE OF DISEASES THAT SHOULD NEVER OCCUR AND WE CANNOT AFFORD TO TREAT CHILDREN FOR CRIPPLING CONDITIONS THAT WE CAN PREVENT SAID REP HENRY WAXMAN D CALIF REP LOUISE SLAUGHTER D NY ADDED WELLNESS IS CHEAPER THAN ILLNESS BUT SHE ALSO SAID I DON'T WANT TO MAKE IT JUST A COSTPREVENTION IDEA BASICALLY IT'S HUMANE ASKED TO RESPOND TO THE DRUG INDUSTRY'S COMPLAINT THAT UNIVERSAL GOVERNMENT PURCHASE WOULD STIFLE THEIR PROFITS AND RESEARCH SEN EDWARD KENNEDY D MASS SAID THE MOST PROFITABLE INDUSTRY IN THE COUNTRY IS PHARMACEUTICAL COMPANIES 9304020136 930402 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 ENVIROTEST SYSTEMS CORP 125 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE APRIL 1 2003 PRICED AT PAR TO YIELD 9625 ACCORDING TO MCM CORPORATEWATCH RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE NOTES ARE NONCALLABLE FOR FIVE YEARS HERTZ CORP 100 MILLION OF NOTES DUE APRIL 1 2000 PRICED AS 65 AT 99559 TO YIELD 658 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 090 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC NIAGARA MOHAWK POWER CORP 295 MILLION TWOPART ISSUE OF FIRSTMORTGAGE BONDS PRICED THROUGH DEALERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 85 MILLION OF BONDS DUE APRIL 1 2003 WAS PRICED AS 6 7/8 AT 99713 TO YIELD 6915 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 875 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE SECOND PART CONSISTING OF 210 MILLION OF BONDS DUE APRIL 1 2024 WAS PRICED AS 7 7/8 AT 98123 TO YIELD 804 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 110 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE OFFERING IS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P WEST VIRGINIA WATER DEVELOPMENT AUTHORITY 874 MILLION OF BONDS PRICED BY A PAINEWEBBER INC GROUP INCLUDED IN THE OFFERING ARE 681 MILLION 1993 SERIES AII WATER DEVELOPMENT REVENUE REFUNDING BONDS AND 193 MILLION 1993 SERIES BII WATER DEVELOPMENT REVENUE BONDS THE 1993 SERIES AII WATER DEVELOPMENT REVENUE REFUNDING BONDS WERE PRICED TO YIELD FROM 31 IN 1994 TO 610 IN 2029 THE 1993 SERIES BII BONDS WERE PRICED TO YIELD FROM 31 IN 1994 TO 612 IN 2033 ALL OF THE BONDS ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P AMERICAN RESIDENTIAL HOLDING CORP 25 MILLION COMMON SHARES PRICED AT 20 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC COMVERSE TECHNOLOGY INC 33 MILLION COMMON SHARES PRICED AT 1550 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC A TOTAL OF 600000 SHARES ARE BEING OFFERED BY ASCOM HOLDING INC A PRINCIPAL SHAREHOLDER OF THE COMPANY HALLIBURTON CO A SECONDARY OFFERING OF 6857 MILLION COMMON SHARES PRICED AT 36125 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP FREMONT FINANCIAL CORP 200 MILLION OF FLOATINGRATE ASSETBACKED CERTIFICATES PRICED AT PAR TO FLOAT 47 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES SOLD THROUGH FREMONT SMALL BUSINESS LOAN MASTER TRUST 1993A ARE BACKED BY REVOLVING LOANS TO SMALL BUSINESSES MOSTLY MANUFACTURING COMPANIES AND DISTRIBUTORS THE LOANS ARE SECURED BY ACCOUNTS RECEIVABLE INVENTORY AND EQUIPMENT ACCORDING TO SOLE MANAGER MERRILL LYNCH & CO RATED TRIPLEA BY DUFF & PHELPS CO AND S&P THE ISSUE IS SUPPORTED BY A 19 SUBORDINATED CLASS HELD BY THE ISSUER THE AVERAGE LIFE OF THE CERTIFICATES AS WELL AS THE EXPECTED FINAL MATURITY IS 301 YEARS FREMONT FINANCIAL IS A SUBSIDIARY OF FREMONT GENERAL CORP FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES THE ISSUE IS BACKED BY TWO PRINCIPALONLY TRUSTS ABOUT 888 MILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 203 AND ABOUT 112 MILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 196 THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8467 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL 150 BILLION LIRE OF REVERSECOUPON FLOATINGRATE EURONOTES DUE APRIL 30 1998 VIA BANCA NAZIONALE DEL LAVORO INTEREST 12 5/8 ANNUAL IN FIRST YEAR THEN SEMIANNUALLY AT 21 MINUS SIXMONTH LONDON INTERBANK OFFERED RATE FOR LIRE ISSUE PRICE 101525 REOFFERED AT 9995 FEES 1 7/8 DE NATIONALE INVESTERINGSBANK NETHERLANDS 150 MILLION GUILDERS OF 6 5/8 EUROBONDS DUE MAY 4 1999 AT ISSUE PRICE 10070 VIA ABN AMRO BANK NV REOFFERED AT 9990 TO YIELD 6646 MARGIN 13 BASIS POINTS ABOVE THE DUTCH GOVERNMENT'S 7 BONDS DUE MARCH 1999 FEES 1 HAUTSDESEINE FRANCE 40 MILLION SWISS FRANCS OF 4 3/4 PRIVATELY PLACED NOTES DUE APRIL 23 2003 PRICED AT 101 1/2 VIA UNION BANK OF SWITZERLAND FEES TOTAL 2 1/8 POINTS INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 500 MILLION DEUTSCHE MARKS OF 6 3/4 EUROBONDS DUE APRIL 29 2003 AT ISSUE PRICE 10110 VIA DEUTSCHE BANK AG YIELD 683 AT COMANAGERS' BREAKEVEN PRICE OF 9945 SPREAD OF 13 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT NOTE FEES 1 3/4 NATIONAL BANK OF HUNGARY HUNGARY 100 MILLION SWISS FRANCS OF 7 1/4 PUBLIC BONDS DUE JUNE 7 2000 PRICED AT 100 3/4 VIA SWISS VOLKSBANK FEES TOTAL 2 1/8 POINTS REPUBLIC OF VENEZUELA SOVEREIGN 150 MILLION DEUTSCHE MARKS OF 10 1/4 EUROBONDS DUE MAY 5 1998 AT ISSUE PRICE PAR VIA COMMERZBANK AG YIELD 1085 AT BREAKEVEN 97775 PRICE FOR COMANAGERS A SPREAD OF 456 BASIS POINTS ABOVE COMPARABLE GERMAN BUND FEES 2 1/2 SHELL AUSTRALIA LTD UK /NETHERLANDS PARENT 100 MILLION AUSTRALIAN DOLLARS OF 7 1/4 EUROBONDS DUE MAY 13 1998 AT ISSUE PRICE 10045 VIA HAMBROS BANK LTD YIELD 758 AT COMANAGERS' BREAKEVEN PRICE SPREAD 0325 POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT NOTE FEES 2 WEST/LB FINANCE NETHERLANDS NV GERMANY PARENT 300 MILLION GUILDERS OF 7 EUROBONDS DUE APRIL 29 2003 AT ISSUE PRICE 10105 VIA ING INVESTMENT BANK REOFFERED AT 10035 TO YIELD 695 MARGIN 28 BASIS POINTS ABOVE GOVERNMENT'S 6 1/2 BONDS DUE APRIL 2003 GUARANTOR WESTDEUTSCHE LANDESBANK GIROZENTRALE FEES 1 9304020135 930402 TECHNOLOGY & MEDICINE US OFFICIALS EUROPEAN RESEARCHERS CLASH OVER EARLY TREATMENT WITH AZT BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL A TRANSATLANTIC DEBATE HAS ERUPTED OVER USING WELLCOME PLC'S DRUG AZT TO TREAT ASYMPTOMATIC PATIENTS INFECTED WITH THE AIDS VIRUS THE CONTROVERSY PITS AN ANGLOFRENCH RESEARCH GROUP AGAINST US HEALTH OFFICIALS WHO HAVE ADVOCATED SUCH TREATMENT THE STUDY CALLED THE CONCORDE TRIAL CONCLUDES EARLY AZT TREATMENT FAILS TO PROLONG THREEYEAR SURVIVAL RATES THE STUDY EXAMINED 1750 SYMPTOMFREE PEOPLE INFECTED WITH HUMAN IMMUNODEFICIENCY VIRUS WHICH CAUSES AIDS HALF RECEIVED AZT AND HALF GOT A PLACEBO OR DUMMY DRUG UNTIL THE ONSET OF SYMPTOMS WHEN THEY SWITCHED TO AZT AFTER THREE YEARS THE SURVIVAL RATE WAS 92 IN THE EARLY TREATMENT GROUP AND 93 IN THE DEFERRED TREATMENT GROUP THERE WAS NO SIGNIFICANT DIFFERENCE IN CLINICAL OUTCOME BETWEEN THE TWO THERAPEUTIC STRATEGIES SAID CONCORDE RESEARCHERS JEANPIERRE ABOULKER OF VILLEJUIF FRANCE AND ANN MARIE SWART OF LONDON PREVIEWING THEIR WORK IN A LETTER TO THE BRITISH JOURNAL LANCET THIS WEEK SIMILARLY DRS ABOULKER AND SWART FOUND NO SIGNIFICANT DIFFERENCE IN THE PATIENTS' PROGRESSION TO FULLBLOWN AIDS HOWEVER THE STUDY DID SHOW THAT PATIENTS TREATED EARLY MAINTAINED HIGHER LEVELS OF DISEASEFIGHTING WHITE BLOOD CELLS OF THE IMMUNE SYSTEM KNOWN AS CD4 CELLS THEIR FAILURE TO LINK THIS SIGN WITH BETTER SURVIVAL CASTS DOUBT ON THE VALUE OF CD4 CELLS IN JUDGING ANTIVIRAL DRUGS THEY ASSERTED IN ROCKVILLE MD THE US FOOD AND DRUG ADMINISTRATION WHICH HAS BLESSED THE NOTION OF EARLY CARE WHEN CD4 COUNTS FALL BELOW 500 OR ABOUT HALF THE NORMAL LEVEL REACTED QUICKLY NO ONE HAS EVER SEEN AZT AS A HOME RUN SAID FDA COMMISSIONER DAVID KESSLER IN A TELEPHONE INTERVIEW IT IS AT BEST A SOLID SINGLE BUT WHEN YOU'RE FOUR RUNS BEHIND IN THE NINTH INNING YOU TAKE A SINGLE FURTHER HE UPHELD MONITORING OF CD4 CELL LEVELS AS A WINDOW ON IMMUNE HEALTH US OFFICIALS JUMPED ON THE CONCORDE CLAIMS CERTAIN AIDS ACTIVISTS HAVE ARGUED DESPITE STUDIES TO THE CONTRARY THAT AZT'S BENEFITS AREN'T WORTH THE TOXICITY MAINLY BONE MARROW SUPPRESSION US OFFICIALS CAUTIONED AGAINST ABANDONING THE DRUG WHILE NOTING AZT'S FLAWS ARE NO SURPRISE TO ANYONE FOLLOWING TREATMENT TRENDS FDA HAS ACKNOWLEDGED THE LONGACCEPTED VIEW THAT AZT'S BENEFITS MAY SUBSIDE AFTER 12 TO 18 MONTHS AS THE VIRUS MUTATES TO EVADE THE DRUG'S EFFECTS HOWEVER THIS STUDY DOES NOT CALL INTO QUESTION THE CLINICAL IMPORTANCE OF AZT IN TREATING SYMPTOMATIC HIV DISEASE THE FDA STRESSED IN A POSITION PAPER THE OFFICE OF ANTHONY S FAUCI DIRECTOR OF THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES ISSUED A STATEMENT FROM AN HIV CONFERENCE IN ALBUQUERQUE NM URGING PATIENTS TO TAKE THE REPORT IN CONTEXT WELLCOME PLC IN LONDON AND ITS US UNIT IN NORTH CAROLINA BOTH ISSUED STATEMENTS CHALLENGING THE CONCORDE'S STUDY METHODOLOGY WHAT ISN'T CLEAR IS HOW MUCH IMPACT THE CONCORDE STUDY WILL HAVE ON THE AIDS TREATMENT IN THE US WHERE AZT'S ROLE AS A SOLO TREATMENT HAS ALREADY BEEN MARKEDLY ERODED AS PATIENTS EMBRACE NEWER ANTIVIRALS OR COMBINATION TREATMENTS INDEED MANY US DOCTORS NOW ACCEPT THE VIEW PROPOUNDED BY A NIAID STUDY A YEAR AGO THAT PATIENTS BENEFIT BY SWITCHING TO A SECOND DRUG BRISTOLMYERS SQUIBB CO'S DDI AFTER JUST FOUR MONTHS ON AZT A THIRD ANTIVIRAL DRUG HOFFMANLA ROCHE'S DDC IS USED IN COMBINATIONS WITH OR AS AN ALTERNATIVE TO AZT NO PATIENT OR DOCTOR SHOULD CHANGE THEIR USE OF AZT BASED ON THE CONCORDE STUDY URGED DANIEL HOTH DIRECTOR OF NIAID'S DIVISION OF AIDS FURTHER HE SUGGESTED THE CONCORDE'S STUDY DESIGN IS OUTDATED BECAUSE AZT AS A SOLO DRUG ISN'T THE IDEAL OF AIDS CARE TODAY'S WORLD IS DIFFERENT WE HAVE MORE TREATMENT OPTIONS HE SAID NIAID HAS CALLED FOR A STATEOFTHEART CONFERENCE THIS SUMMER CONCORDE'S THREEYEAR OBSERVATIONS OVERSHADOW THREE EARLIER US STUDIES SUGGESTING EARLY TREATMENT CAN DELAY THE ONSET OF AIDS OR AIDSRELATED COMPLEX IN THE SHORT TERM BUT IT CONFIRMS FINDINGS OF A FOURTH STUDY FROM THE VETERANS AFFAIRS DEPARTMENT SHOWING SCANT EFFECTS ON LONGTERM SURVIVAL WE KNOW RESISTANCE DEVELOPS IN PEOPLE AFTER ABOUT A YEAR SAID DAVID FEIGAL DIRECTOR OF FDA'S DIVISION OF ANTIVIRAL DRUG PRODUCTS THEY'RE CHOOSING TO PRESENT THE BOTTOM LINE WHAT HAPPENED AFTER THREE YEARS WE NEED TO SEE MORE DATA TO KNOW IF THERE WERE EARLY EFFECTS AT ONE YEAR 18 MONTHS AND TWO YEARS SHOWING DIFFERENCES IN PROGRESSION 9304020134 930402 USA NETWORKS PLANS MOVIES NEW YORK USA NETWORKS SAID IT WOULD LAUNCH A NEW LINE OF MOVIES CALLED USA PICTURES THAT WOULD BE DISTRIBUTED TO THEATERS WORLDWIDE AS WELL AS AIRING DOMESTICALLY ON THE USA NETWORK CURRENTLY COMMITTED TO FOUR MOVIES USA PICTURES WILL DEBUT WITH ALISTAIR MACLEAN'S DEATH TRAIN WHICH WILL PREMIER ON THE USA NETWORK IN APRIL AND BE RELEASED IN THEATERS IN EUROPE AND ASIA THIS FALL USA NETWORKS IS A JOINT VENTURE OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO A MANUFACTURER OF CONSUMER ELECTRONICS AND PARAMOUNT COMMUNICATIONS INC A NEW YORK ENTERTAINMENT AND PUBLISHING CONCERN 9304020133 930402 MORNINGSTAR COMPLETES BUY DALLAS MORNINGSTAR GROUP INC SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF FAVORITE FOODS A SPECIALTY DAIRY PRODUCTS COMPANY FROM A UNIT OF THE SWISS FOOD COMPANY NESTLE SA TERMS WEREN'T DISCLOSED MORNINGSTAR SAID IT FINANCED THE TRANSACTION WITH LOANS FROM EXISTING SENIOR LENDERS MORNINGSTAR MAKES NONDAIRY CREAMERS SOUR CREAM AND EGG AND MILK SUBSTITUTES FOR THE YEAR ENDED DEC 31 IT POSTED A NET LOSS OF 107 MILLION OR 96 CENTS A SHARE ON SALES OF 4106 MILLION FAVORITE FOODS HAD SALES OF 44 MILLION IN 1992 9304020132 930402 WHO'S NEWS AMERICAN TELEPHONE & TELEGRAPH CO AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK TWO EXECUTIVES WERE NAMED TO DEVELOP BUSINESS FOR THE COMPANY'S CONSUMER PRODUCTS UNIT IN JAPAN AND THE ASIA/PACIFIC REGION SHIGEHITO SUZUKI WAS NAMED INTERNATIONAL NEW BUSINESS DEVELOPMENT VICE PRESIDENT AND JAPAN MANAGING DIRECTOR FOR THE CONSUMER PRODUCTS DIVISION HE FORMERLY WAS AN EXECUTIVE WITH JAPANESE TRADING COMPANY MARUBENI CORP DAVID W YANG WAS NAMED ASIA/PACIFIC MANAGING DIRECTOR FOR THE CONSUMER PRODUCTS BUSINESS BASED IN HONG KONG THE AT&T EXECUTIVE CURRENTLY WORKS WITH HONG KONGBASED S MEGGA TELECOMMUNICATIONS LTD A MANUFACTURING PARTNER OF AT&T FOR CORDLESS TELEPHONES SETTING UP A JOINT VENTURE TO MARKET TELECOMMUNICATIONS PRODUCTS FOR THE PEOPLE'S REPUBLIC OF CHINA 9304020131 930402 THE TIMBER SUMMIT ECOSYSTEM BABBITTBABBLE BY IKE C SUGG PRESIDENT CLINTON HAS A BIT OF EXPLAINING TO DO AT TODAY'S TIMBER SUMMIT IN OREGON DURING THE CAMPAIGN MR CLINTON PROMISED NO NET LOSS OF JOBS DUE TO LOGGING RESTRICTIONS IN THE PACIFIC NORTHWEST SUCH AS THOSE IMPOSED OSTENSIBLY ON BEHALF OF THE NORTHERN SPOTTED OWL OVER 15000 LOGGING AND MILL JOBS HAVE BEEN LOST SINCE 1990 AND TENS OF THOUSANDS MORE JOB LOSSES ARE EXPECTED WITHOUT A DRAMATIC OVERHAUL OF THE ENDANGERED SPECIES ACT ESA OR A NEW DEALSTYLE MAKEWORK PROGRAM IT WILL BE IMPOSSIBLE FOR MR CLINTON TO KEEP HIS PROMISE THE ADMINISTRATION IS TOUTING A NEW ECOSYSTEM APPROACH TO AVERT WHAT INTERIOR SECRETARY BRUCE BABBITT CALLS NATIONAL TRAIN WRECKS LIKE THE NORTHERN SPOTTED OWL FIASCO INDEED MR BABBITT HAS SAID THAT RESOLVING THE CONFLICT BETWEEN LOGGERS AND ENVIRONMENTALISTS IS GOING TO BE THE TEST CASE FOR THE ESA'S CONTINUED SURVIVAL YET IF PROTECTING ENTIRE ECOSYSTEMS IS THE APPROACH THERE WILL BE NO REAL SOLUTION AS JOHN FAY AN INTERIOR DEPARTMENT BIOLOGIST RECENTLY ADMITTED YOU CAN'T GET THREE SCIENTISTS IN A ROOM TO AGREE ON WHAT AN ECOSYSTEM IS MR BABBITT HAS BEEN GALLIVANTING AROUND THE COUNTRY SPEAKING ABOUT THE NEED TO INTERVENE BEFORE THE CRISIS POSED BY REPEATED 11THHOUR LISTINGS WHAT MR BABBITT DOESN'T SAY BUT LOGGERS KNOW IS THAT THE NORTHERN SPOTTED OWL WAS NOT THE OBJECT OF AN 11THHOUR LISTING BUT WAS IN FACT USED AS A SURROGATE TO LOCK UP AN ECOSYSTEM UNDER POLITICAL PRESSURE FROM ENVIRONMENTAL GROUPS IN 1988 TWO YEARS BEFORE THE NORTHERN SPOTTED OWL WAS LISTED AS THREATENED UNDER THE ESA ANDY STAHL A RESOURCE ANALYST WITH THE SIERRA CLUB LEGAL DEFENSE FUND REVEALED AT A LAW CLINIC HOW BEST TO DEVISE AN ECOSYSTEM APPROACH UNTIL LEGISLATION IS ADOPTED WHICH PROTECTS THESE FORESTS WE NEED AT LEAST ONE SURROGATE IF YOU WILL THAT WILL PROVIDE PROTECTION FOR THE FORESTS AS THE STRATEGY FOR PROTECTING OLD GROWTH FORESTS MATURED IT APPEARED THAT WILDLIFE WOULD OFFER THE MOST FRUITFUL HUNTING GROUNDS THANK GOODNESS THE SPOTTED OWL EVOLVED IN THE NORTHWEST FOR IF IT HADN'T WE'D HAVE TO GENETICALLY ENGINEER IT AS NATIONAL TRAIN WRECKS GO THEN THIS ONE WAS WELL ENGINEERED MOUNTING EVIDENCE SUGGESTS THAT IT WAS IN FACT AVOIDABLE THE NORTHERN SPOTTED OWL HAS BEEN SHOWN TO THRIVE IN SECOND GROWTH FORESTS SO ITS CLAIMED DEPENDENCE ON OLD GROWTH WHERE LOGGING IS NOT PERMITTED IS AS SPECIOUS AS THE CONTENTION THAT ENVIRONMENTALISTS WANT TO PRESERVE OLD GROWTH FORESTS MERELY TO SAVE OWLS IN FACT ENVIRONMENTALISTS ARE AIMING AT SOMETHING MUCH LARGER THAN THAT A VAGUE AND VAST INTRINSIC VALUE IN NATURE THAT IN THEIR VIEW MUST BE PRESERVED AT ALL COSTS EVEN IF THEY MUST SACRIFICE THE MATERIAL INTERESTS AND WELLBEING OF OTHERS OR MANIPULATE FEDERAL LAW IN SUCH A WAY THAT SPOTTED OWLS ARE USED TO PROTECT MILLIONS OF ACRES OF FOREST GREENERY THE OSTENSIBLE GOAL OF OWL PROTECTION IS THUS DRIVEN BY POLITICS NOT SCIENCE IN 1986 A NATIONAL AUDUBON SOCIETY COMMITTEE OF OWL EXPERTS CONCLUDED THAT POLICY SHOULD PRESERVE A MINIMUM OF 1500 PAIRS OF SPOTTED OWLS IN OREGON WASHINGTON AND CALIFORNIA FOUR YEARS LATER THE GOVERNMENT'S RECOVERY TEAM ADVOCATED A PLAN TO PROTECT 2320 BREEDING PAIRS TODAY MORE THAN 3500 SUCH PAIRS EXIST AND AT LEAST 9000 INDIVIDUAL OWLS STILL THEY ARE NOT ENOUGH AND JUST IN CASE THEY EVER BECOME SO EFFORTS TO SAVE OTHER FORESTPRESERVING SPECIES ARE UNDER WAY THE MARBLED MURRELET A ROBINSIZED SEABIRD RECENTLY LISTED AS THREATENED HAS ALREADY HALTED MANY LOGGING OPERATIONS WITHIN 50 MILES OF THE NORTHERN PACIFIC COASTLINE CURRENTLY IT IS THE ENDANGERED SPECIES ACT AND NOT THE AX THAT IS WREAKING HAVOC IN AMERICA'S FORESTS IT IS TOO EASILY ABUSED ESPECIALLY AS THE COURTS HAVE INTERPRETED IT BEGINNING IN 1978 WITH TENNESSEE'S DAMSTOPPING SNAIL DARTER JUDGES HAVE HANDED OVER DRACONIAN POWERS TO FEDERAL AGENCIES ESPECIALLY THE FISH AND WILDLIFE SERVICE FOR THE PURPOSE OF BLOCKING ANY ACTIVITY THAT MIGHT IMPINGE ON THE HABITATS OF ENDANGERED SPECIES OR EVEN MERELY THREATENED ONES LIKE THE SPOTTED OWL CONSERVING LISTED SPECIES WAS SAID TO BE IN THE WORDS OF THE SUPREME COURT THE HIGHEST OF PRIORITIES AND SHOULD BE PURSUED WHATEVER THE COST AND YET THIS COSTLY EFFORT HAS RESTED ON UNCERTAIN SCIENTIFIC CLAIMS WHEN THE TENNESSEE DAM PROJECT FINALLY WENT AHEAD FOR EXAMPLE THE SNAIL DARTER SURVIVED AND WAS SOON DISCOVERED TO BE ABUNDANT ELSEWHERE THE ESA'S RESTRICTIONS HAVE BEEN AIMED MOST NOTORIOUSLY AT THE PUBLIC FOREST LANDS IN THE PACIFIC NORTHWEST BUT PRIVATE TIMBERLAND IS NOT IMMUNE THE FISH AND WILDLIFE SERVICE REGULARLY PROHIBITS TIMBER HARVESTING ON PRIVATE PROPERTY WITHIN 10000 ACRES OF OWL NESTS FOR EXAMPLE ACROSS THE COUNTRY IN GREENSBORO NC BENJAMIN CONE IS UNABLE TO HARVEST TREES ON 2000 OF HIS 8000 ACRES BECAUSE OF THE PRESENCE OF REDCOCKADED WOODPECKERS AN ENDANGERED SPECIES MR CONE HAS LOST 2 MILLION I CANNOT AFFORD TO LET THOSE WOODPECKERS TAKE OVER THE REST OF THE PROPERTY HE SAYS I'M GOING TO START MASSIVE CLEARCUTTING I'M GOING TO A 40YEAR ROTATION INSTEAD OF A 75 TO 80YEAR ROTATION MR CONE IS BEING PUNISHED FOR DOING EXACTLY WHAT ENVIRONMENTALISTS WANT HAD HE EXPLOITED HIS TIMBER RESOURCE FOR A QUICK RETURN ON HIS INVESTMENT HE WOULD NOT HAVE HAD THE MATURE STANDS OF TREES THAT THE WOODPECKERS PREFER SUCH ARE THE PERVERSE INCENTIVES OF THE ESA LOGGERS IN THE PACIFIC NORTHWEST REPORT THAT TIMBER HARVESTING HAS ACCELERATED PRECISELY BECAUSE THE NORTHERN SPOTTED OWL THREATENS TO TURN EVEN MORE VALUABLE TIMBER ASSETS INTO COSTLY LIABILITIES EVEN THE SPOTTED OWL COORDINATOR FOR THE FISH AND WILDLIFE SERVICE HAS CONCEDED THAT THIS IS WHAT IS HAPPENING IT IS THE OPPOSITE OF WHAT WE WANT HE SAYS BUT THERE'S MORE AT STAKE THAN THE ENVIRONMENT AS THE NATION'S ECONOMIC RECOVERY TAKES HOLD HOUSING STARTS WILL RISE DEMAND FOR BUILDING MATERIALS WILL INCREASE THE ALREADY SIGNIFICANT DEMAND FOR LUMBER INDEED SINCE OCTOBER 1992 LUMBER PRICES HAVE INCREASED BY 90 WHICH AMOUNTS TO AN EXTRA BURDEN OF 10 BILLION TO 12 BILLION ON HOME BUYERS AND ON PEOPLE SEEKING TO REMODEL THEIR HOMES BY SOME ESTIMATES THESE PRICE INCREASES ADD 4600 TO THE PURCHASE PRICE OF THE TYPICAL SINGLEFAMILY HOME BECAUSE SUCH MARGINAL INCREASES AFFECT THE NUMBER OF PEOPLE WHO CAN QUALIFY FOR A MORTGAGE THE EFFECT IS TO PRICE TENS OF THOUSANDS OF HOME BUYERS OUT OF THE MARKET MR CLINTON AND MR BABBITT MUST FACE ECONOMIC REALITY THE LUMBER MUST COME FROM SOMEWHERE THE ENVIRONMENTAL ESTABLISHMENT MUST ALSO FACE REALITY NO LONGER CAN ENVIRONMENTAL LOBBYISTS CLAIM THAT THE ACT WORKS FOR PEOPLE AS WELL AS FOR ANIMALS AND PLANTS AS THE PRESIDENT OF THE NATURE CONSERVANCY AN ENVIRONMENTAL GROUP ASSERTED IN THE WALL STREET JOURNAL LAST YEAR IT DOESN'T THE ESA HAS COSTS ECONOMIC AS WELL AS ENVIRONMENTAL THE NOTION THAT RESTRICTING THE USE OF PRIVATE PROPERTY BEFORE A SPECIES IS LISTED WILL SOMEHOW AVERT TRAIN WRECKS IS ABSURD THOSE UPON WHOM THE RESTRICTIONS ARE IMPOSED WILL CONTINUE TO BEAR THE BRUNT OF THE ESA THOSE WHO OWN THE PRIVATE LAND UPON WHICH THE VAST MAJORITY OF THE PUBLIC'S WILDLIFE DEPENDS WILL CONTINUE TO BE PUNISHED RATHER THAN REWARDED FOR PROVIDING HABITAT FOR AMERICA'S WILDLIFE IN SHORT PEOPLE WILL CONTINUE TO GET CAUGHT IN THE ACT INCLUDING THOSE WHO USE THE PSEUDOSCIENTIFIC RHETORIC OF ECOSYSTEMS TO JUSTIFY AN ONEROUS POLICY WITHOUT HAVING TO DEMONSTRATE ECOLOGICAL NECESSITY OR ANYTHING ELSE FOR THAT MATTER MR SUGG IS A FELLOW AT THE COMPETITIVE ENTERPRISE INSTITUTE IN WASHINGTON DC 9304020130 930402 WHO'S NEWS HF AHMANSON & CO HF AHMANSON & CO IRWINDALE CALIF ARTHUR W SCHMUTZ 71 YEARS OLD AND A LAWYER WAS ELECTED TO THE BOARD OF THIS SAVINGS CONCERN BRINGING THE NUMBER OF DIRECTORS TO 15 9304020129 930402 LETTERS TO THE EDITOR ENVIRONMENTAL MORALIST DEHUMANIZES ECONOMIST JAGDISH BHAGWATI OFFERS SOUND PRINCIPLED REASONS FOR NOT IMPOSING ENVIRONMENTALISTS' MORALITY ON OUR CURRENT AND POTENTIAL TRADING PARTNERS IN THE CONTINUING URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ENVIRONMENTALISTS AGAINST GATT EDITORIAL PAGE MARCH 19 WILL ENVIRONMENTALISTS HEED HIS CALL TO REFRAIN FROM MORAL IMPERIALISM NOT IF JANE PERKINS PRESIDENT OF FRIENDS OF THE EARTH IS REPRESENTATIVE OF ENVIRONMENTALISTS YOU SEE PROF BHAGWATI IS AN ECONOMIST MS PERKINS TESTIFIED ACCORDING TO AN ARTICLE IN THE SAME ISSUE TREASURY NOMINEE SUMMERS SEES AID TO RUSSIA NEAR THAT ECONOMIST LAWRENCE SUMMERS SHOULD NOT GET A KEY INTERNATIONAL POST AT TREASURY SHE SAID THE POST SHOULD GO NOT TO AN ECONOMIST BUT TO A THINKING BUT FEELING PERSON WITH A SENSE OF JUSTICE IT WOULD SEEM UNFEELING ECONOMIST IS A REDUNDANCY IN MS PERKINS'S LEXICON SEE HOW EASY IT IS TO DISMISS OPPOSING POINTS OF VIEW ANY THINKING AND FEELING PERSON WITH A SENSE OF JUSTICE MOST ASSUREDLY WOULD AGREE WITH MS PERKINS'S POSITIONS 9304020128 930402 UNITED WAY DELAYS ACTION TO SETTLE WITH EXPRESIDENT BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK UNABLE TO BREAK A DEADLOCK DIRECTORS OF UNITED WAY OF AMERICA DECIDED TO TAKE NO ACTION RELATED TO A POSSIBLE MULTIMILLION DOLLAR SETTLEMENT WITH ITS FORMER PRESIDENT WILLIAM A ARAMONY WHO LEFT THE ORGANIZATION AMID SCANDAL MORE THAN A YEAR AGO AT A MEETING IN DALLAS THIS WEEK THE NATIONAL UMBRELLA ORGANIZATION FOR COMMUNITY UNITED WAY FUND RAISING DECIDED TO WAIT FOR COMPLETION OF INVESTIGATIONS CONCERNING MR ARAMONY'S ACTIVITIES AT UNITED WAY OF AMERICA BEFORE ADDRESSING A POSSIBLE SETTLEMENT MR ARAMONY WAS DISMISSED AS A RESULT OF ALLEGATIONS OF EXCESSIVE SPENDING PRACTICES AND USE OF HIS OFFICE FOR PERSON GAIN SINCE THAT TIME UNITED WAY OF AMERICA HAS REDUCED ITS STAFF TO 184 FROM 267 EMPLOYEES CUT SALARIES INCREASED LOCAL REPRESENTATION ON ITS NATIONAL BOARD AND NAMED ELAINE CHAO FORMER HEAD OF THE PEACE CORPS TO TAKE OVER AS PRESIDENT BUT THE UNRESOLVED SITUATION CONCERNING MR ARAMONY CONTINUES TO TROUBLE THE ORGANIZATION SEPARATELY THE UNITED WAY OF AMERICA SAID 840 OF ITS LOCAL AFFILIATES SO FAR HAVE SIGNED UP AS MEMBERS OF THE NATIONAL GROUP FOR 1993 LAST YEAR ABOUT 1070 SIGNED UP DOWN FROM ABOUT 1300 IN 1991 MEMBERSHIP COMMITS THE LOCAL AFFILIATES TO SUPPORT THE NATIONAL ORGANIZATION WITH DUES PAYMENTS DIRECTORS HAD BEEN WRESTLING WITH A HANDFUL OF OPTIONS RELATED TO MR ARAMONY'S FEBRUARY 1992 DEPARTURE INCLUDING AN OUTOFCOURT SETTLEMENT BINDING ARBITRATION OR LEGAL ACTION AGAINST MR ARAMONY BUT NO CLEAR CONSENSUS HAS EMERGED THOSE ATTENDING THE MEETING SAID MANY CHAPTERS OBJECTED TO A POSSIBLE MONETARY SETTLEMENT WITH MR ARAMONY CONTENDING SUCH A SETTLEMENT WOULD IMPAIR FUNDRAISING DRIVES AND FURTHER DAMAGE THE UNITED WAY'S IMAGE WE HAVE SAID WE WOULD NOT DEAL WITH THE UNITED WAY OF AMERICA IF THEY SETTLED WITH MR ARAMONY SAID PETER DE YOUNG OF THE NEW UNITED WAY OF FRESNO CALIF MR ARAMONY WRONGED THIS NATION AND DID SEVERAL THINGS THAT WERE NOT RIGHT SETTLING WITH HIM BEFORE ANY INVESTIGATIONS ARE COMPLETE WOULD BE TOTALLY INAPPROPRIATE FOLLOWING UNITED WAY OF AMERICA'S DECISION MR ARAMONY ISSUED A STATEMENT DENYING LAST YEAR'S ALLEGATIONS AGAINST HIM AND CALLING FOR THE BOARD TO RESOLVE THE ISSUE SO THE UNITED WAY CAN MOVE FORWARD IN ITS SERVICE TO THE NATION HE IS SEEKING A REPORTED SETTLEMENT OF MORE THAN 4 MILLION IN PENSION AND OTHER CONTRACT BENEFITS FOLLOWING HIS 22YEAR TENURE WITH UNITED WAY OF AMERICA I DON'T THINK THERE'S ANY RESOLUTION TO THIS SITUATION THAT WILL PLEASE EVERYBODY SAID MARK KNICKELBINE OF THE CHICAGO UNITED WAY EVEN IF IT'S A DECISION NOT TO GIVE MR ARAMONY A DIME THE POTENTIAL FOR LEGAL CHALLENGES WOULD BE DETRIMENTAL TO THE ORGANIZATION I DON'T THINK THE BOARD IS GOING TO BE ABLE TO WAVE A MAGIC WAND AND SOLVE THIS CURRENTLY THE UNITED WAY OF AMERICA IS THE SUBJECT OF INVESTIGATIONS BY THE FEDERAL BUREAU OF INVESTIGATION THE INTERNAL REVENUE SERVICE AND THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE THE INQUIRIES APPARENTLY WERE LAUNCHED IN RESPONSE TO THE CONTROVERSY OVER THE OPERATION OF THE GROUP UNDER MR ARAMONY 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 9304020127 930402 ROCHE HOLDING SAYS GROUP NET ROSE 29 TO 129 BILLION IN '92 SPECIAL TO THE WALL STREET JOURNAL ZURICH ROCHE HOLDING AG REPORTED THAT ITS GROUP NET INCOME ROSE 29 TO 192 BILLION SWISS FRANCS 129 BILLION IN 1992 PROMPTING THE BOARD TO PROPOSE A DIVIDEND INCREASE TO 37 FRANCS THE SWISS PHARMACEUTICAL GROUP SAID CASH FLOW ROSE 29 TO 291 BILLION FRANCS IN 1992 FROM 226 BILLION FRANCS IN 1991 WHILE SALES SHOWED A 13 INCREASE TO 1295 BILLION FRANCS FROM 1145 BILLION FRANCS IN THE PREVIOUS YEAR ROCHE SAID THAT IT MADE A NONRECURRING CHARGE OF 208 MILLION FRANCS AGAINST THE 1992 FINANCIAL STATEMENT FOR FUTURE POSTRETIREMENT HEALTHCARE BENEFITS IN THE US THE PAYMENT HAS BEEN MADE IN FULL THE GROUP SAID ROCHE SAID THAT SIGNIFICANT IMPROVEMENTS IN THE OPERATING SECTOR CONTRIBUTED TO THE GRATIFYING RESULT AS DID THE VERY GOOD NONOPERATIONAL REVENUES ALL GROUP DIVISIONS CONTRIBUTED TO THE RISE IN SALES WITH THE PHARMACEUTICAL DIVISION STANDING OUT WITH A RISE OF 17 IN SALES THE VITAMINS AND FINE CHEMICALS SECTOR AND THE DIAGNOSTICS DIVISION ALSO POSTED DOUBLEDIGIT INCREASES IN REVENUE 9304020126 930402 BUSINESS BRIEF ANHEUSERBUSCH INC PACT WITH ITALIAN BREWER TO COVER DISTRIBUTION OF BUD ANHEUSERBUSCH INC SAID ITALY'S TOP BREWER SPA BIRRA PERONI INDUSTRIALE AGREED TO MARKET ANHEUSER'S PREMIUM LAGER BUD THROUGHOUT THE COUNTRY ANHEUSERBUSCH ST LOUIS SAID THE PACT WILL ALLOW IT TO EXPAND THE DISTRIBUTION OF BUD IN THE MEDITERRANEAN REGION IT ALSO MARKS THE THIRD TIME IN RECENT DAYS THAT THE COMPANY HAS ANNOUNCED AN EXPANSION OF ITS INTERNATIONAL BUSINESS BY ALIGNING ITSELF WITH THE TOP PRODUCER IN A COUNTRY THE COMPANY PLANS TO BUY AN 18 STAKE IN GRUPO MODELO MEXICO'S LARGEST BREWER AND PLANS A JOINT VENTURE WITH KIRIN THE LARGEST JAPANESE BREWER TO MARKET AND SELL BUDWEISER IN JAPAN 9304020125 930402 GENERAL MOTORS FIGHT WITH VW ON LOPEZ PICKS UP SOME SPEED GM DEMANDS FORMER MANAGER DECLARE HE DIDN'T TAKE CONFIDENTIAL DOCUMENTS BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL MOTORS CORP AND VOLKSWAGEN AG TRADED VERBAL BROADSIDES AND MARSHALED LAWYERS AS THEY REIGNITED THE BIZARRE BATTLE OVER COSTCUTTING GURU J IGNACIO LOPEZ DE ARRIORTUA YESTERDAY'S SKIRMISH BETWEEN THE TWO STRUGGLING AUTO GIANTS BEGAN WHEN THE CHAIRMAN OF GM'S ADAM OPEL AG UNIT IN GERMANY DAVID HERMAN ISSUED AN OPEN LETTER TO VW'S MANAGEMENT BOARD THE STATEMENT INCLUDED AN EXTRAORDINARY DEMAND FOR MR LOPEZ TO DECLARE IN WRITING THAT HE DIDN'T TAKE CONFIDENTIAL DOCUMENTS ABOUT GM'S PLANS TO VW'S WOLFSBURG HEADQUARTERS MR HERMAN THUS CONFIRMED THAT GM OFFICIALS SUSPECT MR LOPEZ DID JUST THAT WHEN HE BOLTED TO VW LAST MONTH AFTER ATTENDING HIGHLEVEL GM EUROPE STRATEGY SESSIONS IN ADDITION MR HERMAN DEMANDED THAT VW AND MR LOPEZ STOP WHAT HE CALLED A MASSIVE HEADHUNTING CAMPAIGN IN WHICH GM AND OPEL MANAGERS ARE BEING WOOED TO JOIN VW WITH OFFERS THAT INCLUDED UP TO A DOUBLING OF THEIR INCOMES OPEL SAID MR LOPEZ WHOSE OWN PAY PACKAGE IS REPORTED TO BE AS HIGH AS 20 MILLION FOR FIVE YEARS HAS LURED AWAY EIGHT OTHER GM EXECUTIVES AND HAS APPROACHED MORE THAN 40 THE FEROCITY OF THE VW RECRUITMENT CAMPAIGN WHICH COINCIDES WITH VW'S SCRAMBLE TO CUT COSTS IN THE FACE OF A FIRSTQUARTER LOSS OF 125 BILLION MARKS 7776 MILLION AMOUNTS TO DIRTY POOL OPEL CHARGED MR HERMAN CALLED ON VW TO RETURN TO BEHAVIOR AS PRACTICED IN GERMAN INDUSTRY TO DATE EVEN AMONG TOUGH COMPETITORS OTHERWISE MR HERMAN WARNED THE CONFLICT INITIATED BY VW WOULD ULTIMATELY LEAD TO COUNTERMEASURES HE DIDN'T SPECIFY WHAT THOSE WOULD BE BUT GM OFFICIALS DON'T RULE OUT LITIGATION VW HARRUMPHED RIGHT BACK WE'VE TURNED THE WHOLE THING OVER TO OUR LAWYERS SAID ORTWIN WITZEL A VW SPOKESMAN THE WORDING OF THE GM RELEASE IS VERY VERY AGGRESSIVE AND PROBABLY CONTAINS SOME LEGAL ASPECTS THAT WE'LL HAVE TO CONSIDER CAREFULLY HE SAID VW WILL AWAIT LEGAL ADVICE BEFORE MAKING A DETAILED RESPONSE THE LEGAL REVIEW IS EXPECTED TO TAKE ABOUT A DAY WHATEVER HAPPENS NEXT THE SPECTACLE CERTAINLY STRIPS THE VENEER OFF THE IMAGE THAT SOME EUROPEAN AUTO EXECUTIVES LIKE TO PROJECT OF LOYAL COMPETITION AND A SOCIAL COMPACT TO PLAY FAIR INDEED THE DISPUTE SEEMS LIKELY TO SPARK A DEBATE OVER JUST WHAT IS FAIR IN THE INCREASINGLY BAREKNUCKLED SCRAMBLE AMONG AUTO COMPANIES TO COMPETE THIS JUST DOESN'T GO ON NOT IN THIS VOLUME AND AT THIS LEVEL SAID KARL LUDVIGSEN AN INDUSTRY CONSULTANT AND FORMER FORD MOTOR CO OFFICIAL I CAN'T THINK OF A RAID OF THIS SIZE THAT ANYBODY HAS PUT ON THIS IS AN ATTEMPT TO WOUND A COMPETITOR IN A WAY IT ISN'T SURPRISING THAT MIGHTY VW SHOULD TURN ON PESKY OPEL SINCE THE MID1980S GM EUROPE OF WHICH OPEL IS THE FLAGSHIP UNIT HAS MADE ITSELF ONE OF VW'S TOUGHEST COMPETITORS IN EUROPE A RELENTLESS EFFICIENCY CAMPAIGN OF WHICH MR LOPEZ WAS A KEY LEADER HAS MADE GM EUROPE HUGELY PROFITABLE WHILE MARKETLEADER VW HAD TO WORK ITS FACTORIES OVERTIME TO TURN IN A NARROW PROFIT LAST YEAR AND OPEL HAS EMBARRASSED VW BY SEIZING MARKET LEADERSHIP IN EASTERN GERMANY OPEL MAINTAINS THAT VW STARTED ITS RECRUITMENT CAMPAIGN LAST YEAR WHEN IT HIRED JUERGEN GEBHARDT WHO HAD BEEN THE NO 2 EXECUTIVE AT OPEL'S NEW CARASSEMBLY PLANT IN EISENACH IN WHAT WAS EAST GERMANY THE PLANT HAS BEEN HAILED AS A MODEL OF LEAN PRODUCTION FOR EUROPE MR GEBHARDT IS NOW ON THE MANAGING BOARD OF VW'S AUDI AG UNIT AND OPEL OFFICIALS SAID THEY HEARD VW TRIPLED HIS SALARY AMONG OTHER INDUCEMENTS VW DECLINES TO DISCUSS SALARIES BUT MAINTAINS IT WAS A LOGICAL CAREER ADVANCEMENT FOR MR GEBHARDT SHORTLY AFTER MR LOPEZ LEFT GM SAID SIX OTHER MANAGERS HAD DEPARTED ALTHOUGH VW HAS ACKNOWLEDGED HIRING ONLY ONE OF THEM BUT NOW OPEL IS ACCUSING VW OF TARGETING MORE THAN 40 MANAGERS AT OPEL AND GM WITH FINANCIAL OFFERS GM OFFICIALS SAID VW HAS BEEN PERSISTENT AT PURSUING THE MANAGERS WHOM THEY DESCRIBE AS SENIOR PURCHASING EXECUTIVES BY MAKING MULTIPLE COUNTEROFFERS AN OPEL OFFICIAL SAID THE GM UNIT ISN'T TRYING TO MATCH LOFTY SALARY OFFERS BUT IS RESPONDING WITHIN NORMAL BOUNDARIES WHILE ACKNOWLEDGING THAT EMPLOYEES HAVE THE RIGHT TO TAKE A BETTER OFFER OPEL'S MR HERMAN CALLED IT A NEW STYLE IN GERMAN INDUSTRY WHEN A COMPETITOR SYSTEMATICALLY UNDERMINED ANOTHER COMPANY AND TO ATTAIN THAT GOAL MADE EXCESSIVE FINANCIAL OFFERS FAR ABOVE ANY ACCEPTED STANDARDS MR WITZEL THE VW SPOKESMAN INSISTED THAT VW ISN'T PURSUING A SPECIFIC PLAN TO TRY TO WEAKEN OPEL BY LURING AWAY KEY EMPLOYEES HE MAINTAINED THAT VW HAS FIRM PAY SCALES FOR ITS VARIOUS LEVELS OF MANAGEMENT WE CANNOT OFFER A SALARY THAT IS OUT OF THIS STRUCTURE HE SAID AND HE CONTENDED THAT VW IS AT THE LOWER END OF THE SCALE AMONG EUROPEAN CAR MAKERS ON OVERALL SALARY LEVELS EVEN THOUGH A GM OFFICIAL ASSERTED THAT WE DON'T WANT A WAR FEW EXPECT THE DISPUTE TO END WITH THE EXCHANGE OF THREATS I WOULDN'T BE SURPRISED IF GM WENT TO LAW TO PROTECT THEMSELVES OBSERVED MR LUDVIGSEN THE CONSULTANT REGARDLESS HE ADDED I SEE PERSONNEL PEOPLE BEING CALLED IN AROUND THE INDUSTRY TO MAKE SURE THAT EMPLOYMENT CONTRACTS ARE UP TO SNUFF NO MATTER WHAT THE LEGAL PROFESSION WILL CERTAINLY BENEFIT TIMOTHY AEPPEL CONTRIBUTED TO THIS ARTICLE 9304020124 930402 WHO'S NEWS PANIC BACK AT ICN PHARMACEUTICALS NOW IS FACING A FIGHT TO KEEP HIS JOB BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL MILAN PANIC THE SERBIAN EMIGRE WHOSE STINT AS PRIME MINISTER OF YUGOSLAVIA ENDED ABRUPTLY NOW FACES A FIGHT TO KEEP HIS JOB AT ICN PHARMACEUTICALS INC ONLY WEEKS AFTER RETURNING TO ITS HELM A CALIFORNIA STOCKBROKER WHOSE CLIENTS INCLUDE SOME OF ICN'S BIGGEST SHAREHOLDERS FILED A PROPOSAL WITH THE SECURITIES AND EXCHANGE COMMISSION YESTERDAY TO OUST MR PANIC ICN'S LONGTIME CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND THE OTHER SEVEN DIRECTORS THE BROKER RAFI M KHAN WANTS TO INSTALL AN ENTIRELY NEW BOARD INCLUDING HIMSELF AT THE COSTA MESA CALIF DRUG MAKER THE FILING IS A CONSENT SOLICITATION WHICH IS SIMILAR TO A PROXY FIGHT BUT IS GENERALLY LESS COSTLY AND DOESN'T REQUIRE A SHAREHOLDER MEETING REMOVAL OF THE BOARD REQUIRES APPROVAL BY A MAJORITY OF ICN'S TOTAL SHARES OUTSTANDING THERE SHOULD BE A CHANGE IN MANAGEMENT BECAUSE OF THE OPERATING PERFORMANCE THE CUMULATIVE RETURN TO THE STOCKHOLDERS IN COMPARISON TO OTHER COMPANIES AND EXCESSIVE COMPENSATION TO MR PANIC THE FILING SAID MR KHAN OWNS 120000 ICN SHARES OR LESS THAN 1 OF THE 149 MILLION OUTSTANDING MR PANIC RECEIVED TOTAL CASH COMPENSATION OF 768681 IN THE YEAR ENDED DEC 31 1991 AND A BONUS VALUED AT 54 MILLION WHEN IT WAS AWARDED IN APRIL 1992 THIS BONUS WAS PAID IN A YEAR WHICH SAW THE PRICE OF THE COMPANY'S STOCK SINK TO 650 A SHARE FROM 20375 A SHARE THE FILING SAID ICN OFFICIALS SAID THEY COULDN'T IMMEDIATELY COMMENT BECAUSE THEY HADN'T SEEN THE FILING ICN SHARES WERE QUOTED YESTERDAY AT 13 UP 25 CENTS IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR KHAN SAID IN AN INTERVIEW THAT HE IS COUNTING ON SUPPORT FROM VIRTUALLY ALL OF ICN'S INSTITUTIONAL INVESTORS MANY OF WHOM BOUGHT THE STOCK BASED ON HOPES FOR ICN'S RIBAVIRIN AN ANTIVIRAL DRUG I WOULD BE SHOCKED IF THE TOP 20 INSTITUTIONAL INVESTORS DIDN'T ALL SUPPORT THIS SAID MR KHAN A BROKER AT THE BEVERLY HILLS CALIF FIRM OF REYNOLDS KENDRICK STRATTON INC THOSE INVESTORS ARE BELIEVED TO HOLD ABOUT HALF OF ICN'S SHARES MR KHAN SAID HE RESIGNED TWO WEEKS AGO FROM ANOTHER BEVERLY HILLS FIRM HJ MEYERS & CO OVER A DISPUTE THAT INVOLVED ICN AND MR PANIC MR KHAN CLAIMS HE WAS THE FIRM'S TOP BROKER AND IS STILL ON GOOD TERMS WITH ITS OWNER BUD MEYERS HJ MEYERS RECENTLY UNDERWROTE A SECURITIES OFFERING FOR VIRATEK INC A PUBLICLY TRADED SUBSIDIARY OF ICN MR MEYERS DIDN'T RETURN A CALL YESTERDAY JOHN KAWESKE EXECUTIVE VICE PRESIDENT OF INVESCO TRUST CO DECLINED TO SAY DIRECTLY HOW HE WILL VOTE BUT HE SAID INVESCO'S INVESTMENT WAS MADE A FEW MONTHS AGO PREDICATED ON THE IDEA THAT THERE HAD BEEN A CHANGE IN MANAGEMENT WHEN PANIC BECAME PRIME MINISTER AND GAVE UP HIS CORPORATE RESPONSIBILITIES INVESCO IS BELIEVED TO BE ICN'S LARGEST SHAREHOLDER WITH 13 MILLION SHARES OR A 9 STAKE IN ADDITION THE INVESTMENT REFLECTS OUR BELIEF THAT RIBAVIRIN WILL BECOME A MUCH LARGERSELLING DRUG THAN IT CURRENTLY IS BECAUSE OF PROMISING INDEPENDENT TEST RESULTS SHOWING ITS EFFECTIVENESS IN TREATING HEPATITIS C MR KAWESKE SAID THE DISEASE WHICH CAN DESTROY THE LIVER IS A GROWING HEALTH PROBLEM IN THE US AND AROUND THE WORLD BESIDES MR KHAN THE PROPOSED NEW DIRECTORS ARE HOWARD K COOPER CHAIRMAN OF CARDIAC SCIENCE INC PETER T CASERTA PRESIDENT OF SPECTRUM INFORMATION TECHNOLOGIES ANDREW Z FURTAK VICE PRESIDENT OF RW BAIRD AN INVESTMENT BANKING FIRM CHARLES L MEHLHOUSE UNTIL RECENTLY A MANAGING DIRECTOR OF TEXAS COMMERCE INVESTMENT CO DAVID B MUSKET A CONSULTANT AND FORMER DRUG ANALYST AT GOLDMAN SACHS & CO AND DANA C VERRILL FOUNDER AND CHAIRMAN OF SPECTRUM INFORMATION TECHNOLOGIES THE 63YEAROLD MR PANIC WAS REINSTATED LAST MONTH IN ALL HIS CORPORATE POSTS AT ICN AND ITS FOUR PUBLICLY TRADED SUBSIDIARIES AFTER AN EIGHTMONTH LEAVE OF ABSENCE TO SERVE AS YUGOSLAVIA'S PRIME MINISTER MR PANIC RETURNED TO CALIFORNIA AFTER FAILING TO DEFEAT SERBIAN PRESIDENT SLOBODAN MILOSEVIC IN AN ELECTION CAMPAIGN IN DECEMBER 9304020123 930402 TREASURY SQUEEZE INVOLVED 2 FUNDS LAWSUIT ALLEGES BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO LEADING HEDGE FUNDS ALLEGEDLY BROKE TREASURY AUCTION RULES AND WORKED CLOSELY TOGETHER TO SQUEEZE TREASURY NOTES SOLD IN APRIL 1991 DESPITE ANTITRUST WARNINGS FROM THEIR LAWYERS ACCORDING TO AN AMENDED LAWSUIT FILED BY A NEW JERSEY MONEYMANAGEMENT FIRM THE AMENDED LAWSUIT FILED BY THREE CROWN LP ALLEGES THAT STEINHARDT PARTNERS AND CAXTON CORP WORKED AS A TEAM TO SQUEEZE THE APRIL NOTES THE LAWSUIT SAID OFFICIALS OF THE TWO FIRMS WERE WARNED BY THEIR RESPECTIVE LAWYERS IN THE SPRING OF 1991 TO STOP DISCUSSING TREASURYMARKET MATTERS BECAUSE OF ANTITRUST CONCERNS THE SUIT SAID BOTH FIRMS VIOLATED TREASURY RULES BY NOT DISCLOSING THEIR LARGE NET LONG POSITIONS IN THE APRIL 1991 TWOYEAR NOTES THESE NOTES BECAME THE OBJECT OF A SQUEEZE THAT HAS BEEN UNDER FEDERAL INVESTIGATION AND THE SUBJECT OF EXTENSIVE PRIVATE LITIGATION SINCE THE SALOMON BROTHERS INC SCANDAL ROCKED THE GOVERNMENT BOND MARKET IN 1991 BY MAY 14 1991 THE STEINHARDT AND CAXTON DEFENDANTS HAD ACCUMULATED AN ENORMOUS AND UNPRECEDENTED POSITION IN THE APRIL TWOYEAR MARKET OVER 20 BILLION REPRESENTING MORE THAN 165 OF THE TOTAL ISSUE THE SUIT SAID ALLEGING THAT THE FIRMS USED THE LEVERAGE OF THIS MASSIVE POSITION TO SQUEEZE THE NOTES IN CONCERT WITH OTHERS NUMEROUS INVESTORS INCLUDING THREE CROWN SAY THEY SUSTAINED LOSSES BECAUSE OF THE SQUEEZES THE SUIT WHICH DRAWS ON DEPOSITIONS GIVEN TO GOVERNMENT AGENCIES SAID THAT ERNIE THEURER STEINHARDT'S CHIEF TRADER INSTRUCTED A SUBORDINATE TO SECRETLY MARK IN GERMAN MARKS STEINHARDT'S POSITION IN THE APRIL NOTES TO HELP KEEP THE SIZE OF THE FIRM'S POSITION SECRET PAUL GRAND MR THEURER'S LAWYER WAS UNAVAILABLE TO COMMENT RICHARD WIENER A LAWYER FOR CAXTON SAID THE FIRM ENGAGED IN NO WRONGDOING WHATSOEVER HE DECLINED TO COMMENT ON SPECIFICS OF THE SUIT PAUL ROTH A LAWYER FOR STEINHARDT SAID THE FIRM DIDN'T VIOLATE ANY TREASURY AUCTION RULES THESE FIRMS ARE AMONG A NUMBER OF DEFENDANTS INCLUDING SALOMON ALLEGED BY THREE CROWN TO HAVE CONSPIRED TO MANIPULATE TWOYEAR TREASURY NOTES SOLD IN APRIL AND MAY OF 1991 A SALOMON SPOKESMAN HAD NO COMMENT PARTS OF AN EARLIER VERSION OF THE THREE CROWN SUIT WERE THROWN OUT BY US DISTRICT JUDGE ROBERT CARTER BUT THE JUDGE'S RULING LEFT OTHER PARTS OF THE COMPLAINT IN PLACE AND ALLOWED SOME OF THE PARTICULARS HE HAD DISMISSED TO BE REFILED WITH ANOTHER JUDGE PRESIDING OVER A BATCH OF SALOMONRELATED CASES US DISTRICT JUDGE ROBERT PATTERSON THE JUSTICE DEPARTMENT LAST MAY CHARGED SALOMON WITH ANTITRUST VIOLATIONS IN CONNECTION WITH THE MAY 1991 NOTE SQUEEZE THE FIRM SETTLED THE COMPLAINT PAYING OVER 27 MILLION WITHOUT ADMITTING ANY WRONGDOING THE DEPARTMENT SAID AT THE TIME IT WAS CONTINUING TO INVESTIGATE COCONSPIRATORS WHOM IT DIDN'T NAME AND A FEDERAL GRAND JURY WAS CONVENED IN SEPTEMBER TO PROBE SUSPECTED CRIMINAL VIOLATIONS IN CONNECTION WITH THE APRIL AND MAY 1991 SQUEEZES THE SUIT OF SECAUCUSBASED THREE CROWN ALLEGES THAT SALOMON FACILITATED THE APRIL SQUEEZE BY FINANCING A HUGE POSITION FOR STEINHARDT AND THAT THE MACHINATIONS OF THE APRIL SQUEEZE GAVE RISE TO THE MAY SQUEEZE WHICH ULTIMATELY BROUGHT GOVERNMENT SCRUTINY TO BEAR ON SALOMON THE SUIT SAID STEINHARDT'S LAWYERS WARNED THE FIRM AT ONE POINT TO STOP DISCUSSING FINANCING ISSUES WITH CAXTON BECAUSE OF ANTITRUST CONCERNS IT ALSO SAID THAT CAXTON PERSONNEL TOLD A STEINHARDT PARTNER THEY HAD BEEN ADVISED BY THEIR LAWYERS TO STOP HAVING CONVERSATIONS WITH STEINHARDT ABOUT THE BOND MARKET BECAUSE THE LAWYERS RECOGNIZED THE ANTICOMPETITIVE IMPLICATIONS OF HAVING THE TWO ENTITIES DISCUSS EACH OTHERS' POSITIONS HEDGE FUNDS LIKE STEINHARDT AND CAXTON WHICH ARE LARGELY UNREGULATED PRIVATE INVESTMENT PARTNERSHIPS HAVE BECOME BIG PLAYERS IN THE TREASURY MARKET IN RECENT YEARS THE TWO FIRMS HAVEN'T BEEN CHARGED WITH WRONGDOING BY ANY GOVERNMENT AGENCY 9304020121 930402 POLITICS & POLICY ASPIN EXPECTED TO DOMINATE FOREIGN POLICY GETS OFF TO SLOW START AT THE DEFENSE DEPARTMENT BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR SECRETARY OF DEFENSE LES ASPIN THE PROBLEMS JUST KEEP COMING EXPECTED BY MANY TO BE THE ADMINISTRATION'S DOMINANT FIGURE IN FOREIGN POLICY MR ASPIN INSTEAD HAS COMPILED A DISMAL RECORD IN HIS FIRST TWO MONTHS IN OFFICE HE BEGAN WITH A CLUMSY HANDLING OF THE ISSUE OF GAYS IN THE MILITARY THEN STILL ACTING LIKE A CONGRESSMAN MORE ACCUSTOMED TO MAKING SOUND BITES THAN A CABINET SECRETARY MAKING POLICY HE MUDDIED THE ADMINISTRATION'S POLICY ON BOSNIAN AIR DROPS LAST WEEK THE THREEDECADE VETERAN OF DEFENSE POLICY PRODUCED A DEFENSE BUDGET THAT HE MEEKLY INTRODUCED AS A PRODUCT MAINLY OF THE BUSH ADMINISTRATION DESPITE AN EARLIER ASPIN DIRECTIVE TO THE SERVICES THE BUDGET FAILED TO TERMINATE A SINGLE PROGRAM THE CRITICS ARE ALREADY OUT IN FORCE HE HASN'T TAKEN OVER AS STRONGLY AS HE SHOULD HAVE SAYS RETIRED ARMY COL HARRY SUMMERS AN INFLUENTIAL MILITARY STRATEGIST ADDS WILLIAM KAUFMANN A DEFENSE ANALYST AT THE BROOKINGS INSTITUTION I'M NOT IMPRESSED HE'S BEEN EXTREMELY TENTATIVE YET IT MAY BE UNFAIR TO LAY ALL OF MR ASPIN'S PROBLEMS AT HIS OWN DOORSTEP THE CONSENSUS IN THE PENTAGON AND ON CAPITOL HILL IS THAT A BIG CHUNK OF THE BLAME RESTS WITH PRESIDENT CLINTON WHO ON MILITARY MATTERS HAS BEEN UNCHARACTERISTICALLY TONEDEAF AS HAS MUCH OF HIS WHITE HOUSE STAFF ASPIN DEFENDERS SAY THE SECRETARY HAS BEEN HANDICAPPED BOTH BY WHITE HOUSERELATED PERSONNEL DELAYS AND BY THE PRESIDENT'S RAISING OF SUCH DISTRACTING ISSUES AS THE BANNING OF GAYS IN THE MILITARY FORCING MR ASPIN TO FOCUS ON POLITICAL DAMAGE CONTROL RATHER THAN ON SUCH MORE SIGNIFICANT ISSUES AS MANAGING THE REDUCTION IN THE NATION'S DEFENSE ESTABLISHMENT MOREOVER THE SECRETARY'S EARLY MISSTEPS HAVE BEEN PUNCTUATED BY PERSONAL PROBLEMS INCLUDING THE DEATH OF HIS MOTHER THIS WEEK AND TWO HOSPITALIZATIONS FOR HEART TROUBLE THAT HAVE LEFT HIM TOO WEAK TO BE FULLY EFFECTIVE YET NOT SO ILL THAT HE CAN BE EASED FROM OFFICE WOULDBE ALLIES ON CAPITOL HILL AND ELSEWHERE IN WASHINGTON WHO HAVE WORKED WITH THE ASPIN PENTAGON DESCRIBE IT AS DISORGANIZED AND UNDERSTAFFED IN ADDITION SOME SAY THE ASPIN CAMP HAS AN EMBATTLED USAGAINSTTHEBRASS MENTALITY AND WHILE MR ASPIN AND HIS AIDES ARE UNIVERSALLY DESCRIBED AS INTELLECTUAL POWERHOUSES SOME WORRY THAT THE STAFF IS OVERLOADED WITH CONGRESSIONAL STAFFERS ACADEMICS AND STRATEGIC THINKERS WHILE LACKING IN PEOPLE WITH EXPERIENCE IN THE MILITARY OR INDUSTRY THE BUMPY RIDE ISN'T OVER YET FOREMOST NO COMPROMISE IS IN SIGHT ON THE GAY BAN WHICH WOULD MAKE A POLITICAL TRAIN WRECK LIKELY THIS SUMMER IF MR ASPIN DOESN'T DEVISE A WAY OUT BY THE ADMINISTRATION'S JULY 15 DEADLINE HE COULD SET UP THE PRESIDENT FOR A DEFEAT BY CONGRESS A NEW REPORT ON THE NAVY'S TAILHOOK SEXUALMISCONDUCT SCANDAL PROBABLY WILL BE RELEASED BY THE PENTAGON IN THE COMING WEEKS GIVING CRITICS OF THE MILITARY MORE AMMUNITION A GIANT GAY MARCH ON WASHINGTON AT THE END OF THIS MONTH WILL LIKELY THROW MORE FUEL ON THE FIRE AND IN AN ACT THAT IN THE LONG RUN WILL BE FAR MORE IMPORTANT MR ASPIN WHO HAS A REPUTATION FOR OVERREACHING HAS PLUNGED THE PENTAGON INTO A MASSIVE STUDY OF HOW TO RESHAPE THE ENTIRE US MILITARY ESTABLISHMENT TO FIT THE POSTCOLD WAR WORLD YET HE DID SO WITHOUT A SECRETARY OF THE ARMY NAVY OR AIR FORCEINDEED WITH ONLY ONE OTHER PRESIDENTIAL APPOINTEE IN PLACE TO HELP HIM IN THE OFFICE OF THE SECRETARY OF DEFENSE DOZENS OF HIGHLEVEL VACANCIES REMAIN TO BE FILLED SOME OF THE PEOPLE WHO ARE SLATED FOR THOSE SLOTS ARE AT WORK IN THE PENTAGON BUT ALMOST COMICALLY SOMETIMES ATTEND LENGTHY MEETINGS WITHOUT SAYING A WORD BECAUSE THEY HAVEN'T YET BEEN CONFIRMED BY CONGRESS THE DANGER ARGUES FORMER PENTAGON STRATEGIST BOB GASKIN IS THAT MR ASPIN'S SMALL BAND OF AIDES WILL BE OVERWHELMED BY THE REVVEDUP POLICY AND PLANNING OPERATIONS IN EACH OF THE SERVICES AND THE JOINT CHIEFS OF STAFF A WEAKENED OFFICE OF THE SECRETARY IS THE WORST THING YOU WANT TO TAKE WITH YOU INTO A STRUCTURAL REVIEW LIKE THIS SAYS MR GASKIN NOW WITH BUSINESS EXECUTIVES FOR NATIONAL SECURITY AN INDEPENDENT RESEARCH GROUP I DON'T THINK ASPIN HAS ENOUGH PENTAGON EXPERIENCE TO KNOW HOW MUCH TROUBLE HE'S IN ON THIS THAT'S A CROCK RESPONDS ASPIN SPOKESMAN VERNON GUIDRY WHO NOTES THAT MANY PENTAGON APPOINTEES HAVE BEEN BROUGHT IN TO WORK AS CONSULTANTS THOUGH THEY CAN'T PARTICIPATE IN DECISIONMAKING MR GUIDRY SAYS THE SECRETARY HAS ALREADY BEGUN TO REGAIN HIS POLITICAL FOOTING THE EARLY DAYS DIDN'T GO AS ONE WOULD HAVE HOPED BECAUSE OF THE SECRETARY'S HEALTH AND BECAUSE WE FACED SOME TOUGH ISSUES HE CONCEDES BUT MR ASPIN HAS ADDRESSED HIS HEART PROBLEM HE SAYS AND IS GETTING PEOPLE IN PLACE TO GET HIS REORGANIZED OFFICE UP AND RUNNING THE BOTTOMUP REVIEW WILL BE THE FIRST PRODUCT THAT SHOWS HE IS GETTING THE JOB DONE GIVEN MR ASPIN'S DIFFICULT FIRST TWO MONTHS IN OFFICE THE SURPRISING THING MAY BE THE WIDESPREAD CONFIDENCE INSIDE THE PENTAGON AND ELSEWHERE IN WASHINGTON THAT HE WILL BLOOM INTO A STRONG DEFENSE SECRETARY I THINK ASPIN IS BRILLIANT SAYS REP JOHN KASICH OF OHIO A REPUBLICAN MEMBER OF THE HOUSE ARMED SERVICES COMMITTEE THE REAL QUESTION IS WHETHER CLINTON WILL LET ASPIN BE ASPIN HIS FORMER COLLEAGUES IN CONGRESS SAY THAT MR ASPIN'S START FOLLOWS HIS OLD PATTERN IN THE HOUSE AFTER BECOMING CHAIRMAN OF THE ARMED SERVICES PANEL MR ASPIN STEPPED ON SO MANY TOES WITH HIS LONEWOLF OPERATING STYLE THAT HE PROVOKED A REVOLT IN 1987 AND WAS STRIPPED OF THE CHAIRMANSHIP FOR TWO WEEKS HE THEN SETTLED DOWN LEARNED TO LISTEN TO OTHERS BROUGHT IN AIDES WHO COULD HELP HIM MANAGE AND STEADILY GREW IN STATURE MOST NOTABLE WAS HIS POLITICAL ASTUTENESS IN SUPPORTING THE CONGRESSIONAL RESOLUTION AUTHORIZING THE PERSIAN GULF WAR A SHARP CONTRAST TO CONGRESS'S OTHER DEFENSE BARON SENATE ARMED SERVICES CHAIRMAN SAM NUNN OF GEORGIA WHO DESPITE HIS HAWKISH REPUTATION OPPOSED IT JUST AS HE DID AT FIRST IN THE HOUSE MR ASPIN IS PROVOKING GRUMBLING AMONG SENIOR PENTAGON OFFICERS ESPECIALLY THOSE ON THE JOINT CHIEFS OF STAFF WHO RECEIVED MORE DEFERENCE WHEN MR ASPIN'S PREDECESSOR DICK CHENEY WAS IN CHARGE MR ASPIN DOESN'T SEEM TO ENJOY WHAT ONE ASPIN AIDE CALLS THE ACTIVE COOPERATION OF JOINT CHIEFS CHAIRMAN COLIN POWELL IN AN APPEARANCE EARLIER THIS WEEK WITH MR ASPIN BEFORE THE HOUSE ARMED SERVICES COMMITTEE GEN POWELL SAID I HAVE TO RESERVE JUDGMENT ABOUT THE WISDOM OF THE CLINTON ADMINISTRATION'S PLANS FOR BUDGET CUTS OVER THE NEXT FOUR YEARS THEY'RE TESTING TO SEE HOW TOUGH ASPIN AND CLINTON WILL BE SAYS BROOKINGS'S MR KAUFMANN BEYOND THE JOINT CHIEFS THOUGH THERE IS A SURPRISING DEGREE OF SUPPORT IN THE MILITARY FOR MR ASPIN FAR MORE THAN FOR HIS BOSS FOR ONE THING POLITICALLY ASTUTE SENIOR OFFICERS SAY THE SECRETARY IS THE MILITARY'S BEST HOPE IN THE CLINTON ADMINISTRATION UNLIKE MR CLINTON WHO HAD LITTLE EXPOSURE TO MATTERS MILITARY BEFORE TAKING OFFICE MR ASPIN IS A FAMILIAR FIGURE TO DOZENS OF MILITARY OFFICERS WHO HAVE TESTIFIED BEFORE HIM MOREOVER MR ASPIN ENJOYS EVEN MORE VIGOROUS SUPPORT AMONG THE LARGE NUMBERS OF OFFICERS WHO BELIEVE THE MILITARY ESTABLISHMENT HAS BEEN SLOW TO ADJUST TO POSTCOLD WAR CIRCUMSTANCES IN THE FORMULATION OF ONE INFLUENTIAL TOP OFFICER MR CHENEY WAS GOOD AT USING THE MILITARY BUT MR ASPIN PROMISES TO BE GOOD AT CHANGING IT 9304020120 930402 SIEMENS TO CONSOLIDATE IN US ISELIN NJ SIEMENS AG OF GERMANY SAID IT WILL CONSOLIDATE ITS MEDICAL OPERATIONS IN THE US UNDER SIEMENS MEDICAL SYSTEMS INC THE COMPANY SAID IT IS MAKING THE MOVE TO CUT COSTS AND TO IMPROVE MANUFACTURING EFFICIENCIES AND SERVICE SIEMENS SAID THE CONSOLIDATION WILL TAKE PLACE IN TWO PHASES TWO SUBSIDIARIES AND MARKETING DIVISIONS FIRST WILL REORGANIZE AS THE ELECTROMEDICAL GROUP AND THE ULTRASOUND GROUP THE SECOND PHASE TO TAKE PLACE BY SEPT 30 WILL FOLD SIEMENS GAMMASONICS INC AND SIEMENS MEDICAL LABORATORIES INC INTO SIEMENS MEDICAL SYSTEMS THE REMAINING DIVISIONS FOR DIAGNOSTIC IMAGING SYSTEMS UNDER SIEMENS MEDICAL SYSTEMS WILL FORM ANOTHER GROUP 9304020119 930402 EXECUTIVE LIFE BAILOUT SPRINGS BIG LEAKS BY LAURA JERESKI AND FREDERICK ROSE STAFF REPORTERS OF THE WALL STREET JOURNAL IS ONE OF THE NATION'S BIGGEST INSURANCE REHABILITATION ATTEMPTS ABOUT TO BECOME ONE OF ITS BIGGEST REGULATORY FLOPS PLANS TO RESTORE FAILED EXECUTIVE LIFE INSURANCE CO WHOSE RAPID GROWTH AND JUNKBONDLADEN PORTFOLIO PUT THE 10 BILLION COMPANY ON THE FINANCIAL ROCKS TWO YEARS AGO ARE SEEMINGLY IN AS DEEP TROUBLE AS THE INSURER ITSELF WAS WHEN IT WAS SEIZED BY REGULATORS IN THE LATEST OF A STRING OF LEGAL REVERSALS A CALIFORNIA APPELLATE COURT RECENTLY HELD THAT STATE INSURANCE COMMISSIONER JOHN GARAMENDI'S DESIGN TO SELL EXECUTIVE LIFE TO FRENCH INVESTORS FAILED TO MEET FUNDAMENTAL TESTS OF FAIRNESS TO THE COMPANY'S POLICYHOLDERS NOW STRIKING AT THE HEART OF MR GARAMENDI'S CLEANUP PLAN AND WITH AN EYE TO GAINS IN THE JUNKBOND MARKET A MAJOR GROUP OF CLAIMANTS IS ASKING TO UNDO THE YEAROLD 325 BILLION SALE OF EXECUTIVE LIFE'S PORTFOLIO OF HIGHYIELD BONDS AND OTHER ASSETS TO ALTUS FINANCE A UNIT OF CREDIT LYONNAIS THE FRENCH BANK CRITICISM IS RIFE THAT MR GARAMENDI'S EFFORT TO PUSH THROUGH A SWIFT SALE OF EXECUTIVE LIFE'S JUNK BONDS AND TO SUBORDINATE CLAIMS AMOUNTING TO NEARLY A QUARTER OF ALL OF THE COMPANY'S LIABILITIES MAY HAVE PUT BILLIONS OF DOLLARS OF PROFIT IN THE HANDS OF CREDIT LYONNAIS AND ITS FINANCIAL ADVISERS APOLLO INVESTMENT FUND LP HEADED BY LEON BLACK THE ONETIME HEAD OF MERGERS AND ACQUISITIONS AT DREXEL BURNHAM LAMBERT INC THIS IS THE GANG THAT COULDN'T SHOOT STRAIGHT SAYS GARY FONTANA A LAWYER REPRESENTING THE CLAIMS OF HOLDERS OF SOCALLED MUNIGICS BONDS BACKED BY EXECUTIVE LIFE THAT ORIGINALLY WERE SOLD TO NINE MUNICIPALITIES THE MUNIGIC HOLDERS AND OTHER CLAIMANTS ARE HEARTENED BY THEIR SUBSTANTIAL COURT VICTORY ON MARCH 22 IN ITS DECISION THE APPELLATE COURT HELD THAT THE REHABILITATION PLAN WAS FLAWED IN THREE WAYS THE PROPOSED TWOTIER VALUATION OF THE MUNIGICS WHICH WOULD HAVE LIMITED THE EVENTUAL PAYOUT ACCORDING TO THE PRICE HOLDERS PAID AND A FURTHER DISTINCTION BETWEEN POLICIES WERE FOUND TO HAVE NO BASIS IN LAW FURTHER THE COURT SAID THE VALUE OF THE ASSETS REMAINING UNDER THE CALIFORNIA INSURANCE COMMISSIONER'S CONTROL AND AVAILABLE FOR DISTRIBUTION WOULD BE DETERMINED WHEN THE COMPANY EMERGES FROM CONSERVATORSHIP AKIN TO EMERGING FROM BANKRUPTCY RATHER THAN ON APRIL 11 1991 WHEN IT WAS SEIZED THAT'S A SIGNIFICANT DIFFERENCE THESE ASSETS VALUED AT 5 BILLION TWO YEARS AGO ARE WORTH PERHAPS 76 BILLION TODAY THAT DECISION PUSHED THE PRICE OF MUNIGICS TO 77 CENTS ON THE DOLLAR FROM 50 CENTS AT THE BEGINNING OF THE YEAR IN ACTIVE SECONDARYMARKET TRADING INVESTORS INCLUDING BAUPOST GROUP INC AND MJ WHITMAN BOUGHT SIZABLE STAKES FOR AS LITTLE AS 20 CENTS ON THE DOLLAR BUT THE JUNKBOND PORTFOLIO IS LIKELY TO BE AN EVEN BIGGER HONEY POT TO BEGIN WITH EXPERTS VALUED IT AT PERHAPS 800 MILLION MORE THAN ALTUS PAID AT THE TIME OF THE TRANSFER SINCE THEN DISTRESSED AND DEFAULTED BONDS WHICH MADE UP TWOTHIRDS OF THE PORTFOLIO HAVE RISEN 18 ACCORDING TO THE SALOMON BROTHERS DAILY HIGH YIELD INDEX APOLLO'S RESULTS HAVE FAR EXCEEDED THAT BECAUSE MR BLACK HAS BEEN AN ACTIVE PARTICIPANT IN MORE THAN A DOZEN COMPLETED REORGANIZATIONS THE 10 LARGEST PUBLIC STAKES IN EXECUTIVE LIFE'S PORTFOLIO VALUED AT ROUGHLY 380 MILLION A YEAR AGO HAVE MORE THAN DOUBLED IN VALUE SINCE ACCORDING TO ONE ESTIMATE AMONG THE BIGGEST SCORES EII HOLDINGS INC BONDS VALUED AT 34 MILLION A YEAR AGO ARE WORTH ALMOST 111 MILLION TODAY MR BLACK'S FARLEY INDUSTRIES INC STAKE IS VALUED AT 41 MILLION UP FROM 136 MILLION A YEAR AGO CHARTER MEDICAL CORP BONDS VALUED AT 613 MILLION NOW ARE VALUED AT 121 MILLION PART OF THAT POSITION WAS SOLD RECENTLY MUNIGIC HOLDERS ARE LICKING THEIR CHOPS ARTHUR F FERGENSON ATTORNEY FOR THE UNDERWRITERS OF THE MUNICIPAL BONDS SAYS IF THE FRENCH WANT TO WRITE EXECUTIVE LIFE A CHECK FOR 15 BILLION I'D BE HAPPY TO ACCEPT THE DEAL IS A DONE DEAL RETORTS KENNETH R HEITZ OF IRELL & MANELLA ATTORNEYS FOR AURORA NATIONAL LIFE ASSURANCE CO THE INSURER THAT WAS TO HAVE TAKEN OVER EXECUTIVE LIFE'S BUSINESS AND REMAINING ASSETS THIS IS JUST A SHAKEDOWN BY LAWYERS WHO REPRESENT SPECULATORS WHO'VE MADE MORE THAN A 200 PROFIT HE SAYS FOR HIS PART MR GARAMENDI SAYS HE IS PURSUING THE BEST POSSIBLE RESOLUTION FOR EXECUTIVE LIFE HE HAS NO REGRETS HE SAYS ABOUT THE PRICE OF THE JUNKBOND SALE WHICH HE CONSIDERS FORMALLY COMPLETED IT'S EASY TO LOOK BACK AND SAY GEEZ I WISH WE HAD KNOWN THAT INTEREST RATES WERE GOING TO DROP BY 50' BUT AT THE TIME THAT WAS THE MAXIMUM THAT ANYONE WANTED TO PAY FOR THE OPERATION THE INSURANCE COMMISSIONER SAYS MR GARAMENDI AND OTHER STATE INSURANCE OFFICIALS ARE NEGOTIATING WITH MUTUELLE ASSURANCE ARTISANALE DE FRANCE OR MAAF A PARISBASED INSURER WHICH WITH PARTNERS WAS TO HAVE CONTRIBUTED 300 MILLION IN NEW CAPITAL TO THE INSURER AND TAKEN OVER THE COMPANY THE TASK OF PUTTING TOGETHER A NEW PACT HAS BEEN COMPLICATED INDUSTRY INSIDERS SAY BY THE RECENT CALIFORNIA APPELLATE RULING AMONG OTHER THINGS THE COURT'S DECISION WILL INCREASE PAYMENTS TO EXECUTIVE LIFE POLICYHOLDERS WHO CHOOSE TO WITHDRAW FUNDS WHEN THE FRENCH TAKE OVER THE COMPANY RATHER THAN LEAVE THOSE FUNDS FOR FIVE YEARS WITH THE NEW OWNERS SUCH POLICYHOLDER WITHDRAWALS OR OPTOUTS CUT THE ASSETS TO BE TRANSFERRED TO THE NEW COMPANY THUS REDUCING ITS POTENTIAL PROFITABILITY FOR THE MOMENT EXECUTIVE LIFE POLICYHOLDERS ARE ON HOLD IT'S ESTIMATED THAT BEFORE INDUSTRY GUARANTY FUND PAYMENTS POLICYHOLDERS MAY EVENTUALLY RECEIVE ABOUT 72 CENTS ON THE DOLLAR ANNUITANTS HAVE BEEN RECEIVING 100 CENTS ON THE DOLLAR FOR PERIODIC PAYMENTS DEATH CLAIMS ARE BEING PAID IN FULL MUNIGIC HOLDERS ON THE OTHER HAND REMAIN IN LIMBO OUR PEOPLE HAVEN'T GOTTEN PAID A PENNY COMPLAINS PHILIP WARDEN A LAWYER REPRESENTING THE BANKING TRUSTEES FOR THE MUNIGICS 9304020118 930402 POLITICS & POLICY CLINTONGORE TRANSITION FUNDRAISERS TAPPED INTO SOME TRADITIONAL SOURCES BY EDWARD T POUND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PREACHES HIS OWN BRAND OF NEW POLITICS BUT USED OLDSTYLE TACTICS TO HELP FINANCE HIS TRANSITION TO POWER HIS FUNDRAISERS TAPPED INTO A RICH VEIN OF MONEY FROM WALL STREET AND BUSINESS LEADERS HOLLYWOOD MAGNATES LAWYERS GOVERNMENT CONTRACTORS AND LOBBYISTS TO HELP PAY THE COSTS OF TRANSFERRING POWER TO THE CLINTON TEAM EVEN SOME STAUNCH REPUBLICANS CHIPPED IN AND MR CLINTON'S AIDES RAISED A TIDY SUM FROM SMALL DONORS INCLUDING SOME WHO GAVE AS LITTLE AS 2 IN ALL 52 MILLION IN PRIVATE GIFTS WERE CONTRIBUTED TO THE CLINTONGORE PRESIDENTIAL TRANSITION PLANNING FOUNDATION AN ARKANSASBASED TAXEXEMPT ENTITY THE BIGGEST CONTRIBUTION CAME FROM EIGHT MEMBERS OF THE GALLO WINE FAMILY IN CALIFORNIA WHO GAVE MR CLINTON A TOTAL OF 40000 THE WINE INDUSTRY FACES THE PROSPECT OF VASTLY REDUCED SALES IF HIGH LIQUOR TAXES ARE IMPOSED AS PART OF PRESIDENT CLINTON'S HEALTHCARE SYSTEM REFORM MORE THAN TWO DOZEN PARTICIPANTS IN MR CLINTON'S WIDELY PUBLICIZED LITTLE ROCK ECONOMIC CONFERENCE IN DECEMBER ARE LISTED AS CONTRIBUTORS TO THE FOUNDATION MOST GAVE 5000 THE MAXIMUM PERMITTED BY THE TRANSITION LAW LINDA J WACHNER CHAIRMAN OF WARNACO GROUP INC AND A BIGTIME SUPPORTER OF REPUBLICAN CANDIDATES WAS LATER SOLICITED FOR A DONATION AND GAVE 5000 BUT MS WACHNER AND OTHER PARTICIPANTS SAID THERE WASN'T ANY CONNECTION BETWEEN THEIR DONATIONS AND CONFERENCE PARTICIPATION THE NAMES OF CONTRIBUTORS ARE CONTAINED IN REPORTS FILED WITH THE US GENERAL SERVICES ADMINISTRATION BY THE CLINTONGORE FOUNDATION IN ADDITION CONGRESS APPROPRIATED AN ADDITIONAL 35 MILLION FOR TRANSITION ACTIVITIES IN A REPORT SUBMITTED TO THE GSA LAST WEEK TRANSITION AIDES SAID 3270504 IN PUBLIC FUNDS HAD BEEN SPENT MOST OF IT ON SALARIES FOR 452 STAFFERS IN CONTRAST THE TRANSITION TEAM OF GEORGE BUSH IN AN APRIL 1989 REPORT TO THE GSA SAID IT SPENT ABOUT 23 MILLION IN PUBLIC FUNDS AND DIDN'T ACCEPT PRIVATE CONTRIBUTIONS MR CLINTON'S AIDES NOTE HOWEVER THAT MR BUSH SUCCEEDED ANOTHER REPUBLICAN RONALD REAGAN THEY SAY THAT TRANSFERRING POWER TO ANOTHER PARTY IS MORE COMPLICATED AND EXPENSIVE LAST YEAR MR CLINTON AND HIS VICE PRESIDENTIAL RUNNINGMATE AL GORE DECREED THAT NO CONTRIBUTIONS WOULD BE ACCEPTED FROM CORPORATIONS NATIONAL BANKS POLITICAL ACTION COMMITTEES AND UNIONS BUT THEY DIDN'T PREVENT INDIVIDUALS INVOLVED IN SUCH ORGANIZATIONS FROM GIVING THE CLINTONGORE FOUNDATION WHICH WAS MANAGED BY TOP CLINTON AIDES NOW IN THE WHITE HOUSE REPORTED SPENDING 48 MILLION IN PRIVATE CONTRIBUTIONS INCLUDING 18 MILLION FOR CONSULTANTS AND 11 MILLION FOR TRAVEL WHEN ASKED FOR DETAILS ON HOW THE MONEY WAS SPENT THE WHITE HOUSE PRESS OFFICE SAID IT WOULD MAKE AVAILABLE SOMEONE TO ANSWER QUESTIONS BUT FAILED TO FOLLOW UP ON THE COMMITMENT JOHN TISDALE A LITTLE ROCK LAWYER AND FORMER COUNSEL FOR THE TRANSITION FOUNDATION SAID HE BELIEVES MOST CONSULTING FEES WENT FOR RESEARCH ON HEALTH CARE TAX REFORM AND OTHER POLICY ISSUES WHITE HOUSE AIDES SAID ELI SEGAL THE TRANSITION'S CHIEF FINANCIAL OFFICER AND NOW AN ASSISTANT TO THE PRESIDENT HAD ORGANIZED A DIRECTMAIL EFFORT TO RAISE SOME CONTRIBUTIONS MR SEGAL DIDN'T RETURN PHONE CALLS DENNIS BAKKE PRESIDENT OF A LARGE INDEPENDENT POWER PRODUCING COMPANY AND AN INFORMAL ADVISER TO PRESIDENT CLINTON GAVE 5000 AS DID ROGER SANT CHAIRMAN OF MR BAKKE'S VIRGINIABASED AES CORP MR BAKKE ATTENDED THE DECEMBER ECONOMIC CONFERENCE A BAKKE AIDE SAID THAT MR CLINTON PULLED THE EXECUTIVE ASIDE TO DISCUSS ENERGY ISSUES AND THAT MR BAKKE RECOMMENDED A FORMER AES BOARD MEMBER HAZEL O'LEARY FOR ENERGY SECRETARY SHE GOT THE JOB NOT SURPRISINGLY PARTNERS AT GOLDMAN SACHS & CO WERE LISTED AS HAVING GIVEN AT LEAST 11000 TO THE TRANSITION FUND PRESIDENT CLINTON'S CHIEF ECONOMIC ADVISER ROBERT RUBIN WAS COCHAIRMAN OF THE INVESTMENT BANKING FIRM WHOSE MEMBERS WERE BIG CONTRIBUTORS TO MR CLINTON'S PRESIDENTIAL CAMPAIGN OTHER INFLUENTIAL WALL STREET FIGURES INCLUDED FELIX ROHATYN A SENIOR PARTNER AT LAZARD FRERES & CO WHO IS LISTED AS GIVING 5000 MR ROHATYN WHOSE WIFE ALSO GAVE 5000 TO THE TRANSITION FUND CONTRIBUTED 100000 TO THE DEMOCRATIC PARTY LAST YEAR OTHERS LISTED AS TRANSITION CONTRIBUTORS WERE RICHARD J DENNIS A CHICAGO COMMODITY BROKER WALTER SHORENSTEIN A SAN FRANCISCO PHILANTHROPIST AND REALESTATE MAGNATE HUGH MCCOLL JR CHAIRMAN OF NATIONSBANK CORP PETER B LEWIS CHIEF EXECUTIVE OFFICER OF PROGRESSIVE CORP AN INSURANCE CONCERN PENNY PRITZER AN HEIR TO THE HYATT HOTEL FORTUNE WILLIAM LERACH A WEST COAST PLAINTIFFS' LAWYER AND DWAYNE ANDREAS CHAIRMAN OF THE ILLINOISBASED AGRICULTURAL CONCERN ARCHERDANIELSMIDLAND CO THE ENTERTAINMENT INDUSTRY ALSO WAS WELL REPRESENTED ON THE DONORS' LIST AMONG OTHERS JEFFREY KATZENBERG THE WALT DISNEY CO STUDIO CHIEF DAVID GEFFEN A RECORDING PRODUCER FREDERICK W FIELD A MOVIE PRODUCER AND INVESTOR AND HUGH HEFNER PLAYBOY MAGAZINE FOUNDER 9304020117 930402 INTERNATIONAL INDUSTRIAL PRODUCTION DECLINED IN FEBRUARY IN WESTERN GERMANY FRANKFURT WESTERN GERMANY'S INDUSTRIAL OUTPUT FELL 1 IN FEBRUARY FROM THE PREVIOUS MONTH EXTENDING A YEARLONG DECLINE AS RECESSION DEEPENED THE DECLINE IN NET INDUSTRIAL PRODUCTION IS CONTINUING THE ECONOMICS MINISTRY SAID AS IT RELEASED THE REPORT WHICH ALSO SHOWED A STEEP 11 PRODUCTION DROP FROM FEBRUARY 1992 THE MONTHLY DECLINE IN FEBRUARY WHEN THE SEASONALLY ADJUSTED PRODUCTION INDEX STOOD AT 1104 WAS ANNOUNCED ALONG WITH A REVISION IN THE JANUARY INDEX TO 1115 FROM 1144 VOIDING THE PREVIOUSLY REPORTED RISE IN OUTPUT ECONOMISTS SAID FEBRUARY'S DECLINE ON TOP OF JANUARY'S REVISION SHOWED THAT GERMANY'S ECONOMY WAS BRAKING HARDER THAN WAS EXPECTED AT THE START OF THE YEAR IT IS DISAPPOINTING WE HAVEN'T SEEN A DOWNWARD REVISION LIKE THIS FOR SOME TIME SAID ULRICH BECKMANN AN ECONOMIST WITH DEUTSCHE BANK RESEARCH THE GERMAN MANUFACTURING ECONOMY LOOKS TO BE IN VERY BAD SHAPE MANUFACTURERS OF CAPITAL GOODS AND BASIC MATERIALS LED PRODUCTION DECLINES INDUSTRY INVESTMENT PLANS HAVE BEEN SCALED BACK BECAUSE OF HIGH INTEREST RATES RISING PRODUCTION COSTS AND EXPECTATIONS OF HIGHER TAXES IF BONN CAN'T CONTAIN THE RISING COSTS OF GERMANY UNITY THE BOTTOM FELL OUT OF GERMANY'S IMPORTANT AUTOMOTIVE SECTOR WHERE CAR PRODUCTION FELL BY A STUNNING 29 IN FEBRUARY FROM THE YEARAGO MONTH 9304020116 930402 CMS ENERGY'S DEBT IS PUT ON CREDIT WATCH AFTER PACT IS REVISED DEARBORN MICH STANDARD & POOR'S CORP PLACED CMS ENERGY CORP DEBT RATING ON CREDIT WATCH WITH NEGATIVE IMPLICATIONS AFTER MICHIGAN UTILITY COMMISSIONERS CHANGED A REVISED PROPOSAL SETTLING A DISPUTE CMS CHAIRMAN WILLIAM T MCCORMICK JR SAID THAT BECAUSE OF THE MODIFICATION THE CHARGE RELATED TO THE PROPOSED SETTLEMENT WILL BE MODERATELY HIGHER THAN THE PREVIOUSLY ANNOUNCED ESTIMATED CHARGE OF 200 MILLION THE MODIFICATIONS AREN'T MAJOR MR MCCORMICK SAID ADDING THAT CMS'S REVISED PROPOSAL WITH THE COMMISSION'S MODIFICATIONS WILL LIKELY BE THE SETTLEMENT TO END THE DISPUTE BUT S&P SAID THE COMMISSION'S MODIFICATIONS COULD RESULT IN LARGER WRITEOFFS FURTHER WEAKENING CMS ENERGY'S BALANCE SHEET CMS ENERGY AND ITS CONSUMER POWER UNIT HAVE 20 DAYS TO ACCEPT OR REJECT THE CHANGES CMS ENERGY TRADING WAS TEMPORARILY HALTED YESTERDAY MORNING PENDING THE ANNOUNCEMENT CMS ENERGY CLOSED UP 375 CENTS AT 20125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR MCCORMICK SAID HE HOPES THE SETTLEMENT WILL BE RESOLVED IN THE NEXT COUPLE OF WEEKS BECAUSE CMS ENERGY WANTS TO TAKE THE CHARGE AGAINST ITS FOURTHQUARTER 1992 EARNINGS 9304020115 930402 BNP REPORTS DECLINE OF 26 IN GROUP NET AND CITES PROVISIONS SPECIAL TO THE WALL STREET JOURNAL PARIS BANQUE NATIONALE DE PARIS FRANCE'S BIGGEST RETAIL BANK REPORTED A 26 DECLINE IN GROUP PROFIT IN LINE WITH AN ESTIMATE GIVEN IN MARCH AS THE BANK STATED AT THAT TIME THE PROFIT DECLINE MAINLY REFLECTED HEAVY PROVISIONS FOR RISKY CLIENT LOANS BNP'S LOAN PROVISIONS ROSE 37 TO 838 BILLION FRANCS 153 BILLION WHICH PARTLY OFFSETS A 9 GAIN IN OPERATING PROFIT TO 1181 BILLION FRANCS BNP ALSO NOTED THAT EARNINGS CONTRIBUTIONS FROM PARTLY CONSOLIDATED HOLDINGS SLUMPED 63 TO 473 MILLION FRANCS FROM 128 BILLION FRANCS THE BANK SAID THIS REFLECTED REDUCED INCOME FROM ITS STAKE IN STATECONTROLLED INSURER UNION DES ASSURANCES DE PARIS AS WELL CERTAIN FOREIGN AFFILIATES BNP IS BELIEVED TO BE ON THE TOP OF THE NEW CENTERRIGHT GOVERNMENT'S LIST OF BANKS AND INSURANCE COMPANIES THAT WILL BE PRIVATIZED IN THE COMING MONTHS THE BANK'S CHAIRMAN RENE THOMAS IS EXPECTED TO BE REPLACED AFTER HE REACHES THE MANDATORY RETIREMENT AGE THIS YEAR UNDERLYING LENDING ACTIVITY SHOWED MODEST GROWTH WITH NET BANKING INCOME UP 52 TO 3992 BILLION FRANCS THE BANK SAID COMMISSIONBASED INCOME WAS A PRIMARY SOURCE OF THAT GROWTH AND THE PROPORTION OF COMMISSIONS IN NET BANKING INCOME ROSE TO 277 IN 1992 FROM 257 A YEAR BEFORE LAST YEAR BNP'S OPERATING COSTS ROSE 38 TO 2810 BILLION FRANCS THE VOLUME OF LOANS GRANTED IN 1992 ROSE 32 TO 408 BILLION FRANCS HOWEVER THIS REPRESENTED A SLOWDOWN FROM THE 85 INCREASE RECORDED IN 1991 BNP NOTED THAT LOAN MARGINS WERE MAINTAINED AT ROUGHLY THE SAME LEVEL AS THE PREVIOUS YEAR WHILE COMMISSIONS ARE GROWING AT A SATISFACTORY RATE COMMENTING ON THE LEVEL OF PROVISIONS BNP NOTED THAT PARTICULAR ATTENTION HAD BEEN GIVEN TO LOANS TO REAL ESTATE PROFESSIONALS BOTH IN FRANCE AND ABROAD WHILE SUCH LOANS REPRESENTED LESS THAN 4 OF TOTAL COMMITMENTS BNP CHOSE TO PROVISION CERTAIN HIGHRISK LOANS AT A 45 RATE BNP ALSO SET ASIDE 561 MILLION FRANCS LAST YEAR FOR RESTRUCTURING COSTS AT THE BANQUE ARABE ET INTERNATIONALE D'INVESTISSEMENT A FRANCOARAB BANK THAT GOT INTO FINANCIAL DIFFICULTIES 9304020114 930402 TECHNOLOGY & MEDICINE SMOKING RATE IN US RISES FOR FIRST TIME IN 25 YEARS NEW YORK THE RATE OF SMOKING IN THE US INCREASED SLIGHTLY IN 1991 THE FIRST RISE AFTER STEADILY DECLINING FOR 25 YEARS ACCORDING TO A NEW FEDERAL STUDY SMOKING EXPERTS BLAME THE INTERRUPTION IN THE DECLINE IN PART ON THE STEADY GROWTH OF DISCOUNT CIGARETTES WHICH NOW COMPRISE NEARLY ONETHIRD OF ALL SALES IN 1991 257 OF THE ADULT POPULATION SMOKED COMPARED WITH 255 IN 1990 ACCORDING TO A SURVEY RELEASED YESTERDAY BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA WE ARE VERY DISCOURAGED SAID MICHAEL P ERIKSEN DIRECTOR OF THE OFFICE ON SMOKING AND HEALTH AT CDC UNTIL 1991 SMOKING RATES HAD FALLEN WITHOUT INTERRUPTION SINCE 1966 WHEN 426 OF THE POPULATION SMOKED DATA FOR 1992 WON'T BE AVAILABLE FOR 12 MONTHS MR ERIKSEN SAID HEAVY PROMOTIONAL ACTIVITY BY THE CIGARETTE INDUSTRY ALSO PLAYED A ROLE IN THE UPTURN THE TOBACCO INDUSTRY SPENT 39 BILLION ON ADVERTISING AND PROMOTION IN 1991 AN 11 INCREASE FROM A YEAR EARLIER THE CDC SAID THE CDC STUDY ALSO FOUND THAT SLIGHTLY MORE THAN 33 OF PEOPLE LIVING BELOW THE POVERTY LEVEL SMOKE WHILE ONLY ABOUT 14 OF COLLEGE GRADUATES SMOKE 9304020113 930402 MARKETING & MEDIA US FIRMS JOIN BIDDING FOR MEXICAN TV NETWORKS MEXICO CITY A CONSORTIUM LED BY GUADALAJARA INDUSTRIALIST RAYMUNDO GOMEZ FLORES AND INCLUDING CAPITAL CITIES/ABC INC AND PARAMOUNT COMMUNICATIONS INC AS MINORITY PARTNERS WAS ONE OF AT LEAST THREE GROUPS TO REGISTER TO BID ON A PACKAGE OF MEXICAN GOVERNMENTOWNED MEDIA COMPANIES WHICH INCLUDES TWO TELEVISION NETWORKS THE FINANCE MINISTRY HADN'T IDENTIFIED THE INTERESTED GROUPS AS OF LATE YESTERDAY BUT SOURCES FAMILIAR WITH THE PRIVATIZATION SAID THE GOMEZ GROUP AND TWO OTHERS HAD FORMALLY EXPRESSED THEIR DESIRE TO MAKE BIDS ONE GROUP CONSISTS OF BANCOMER MEXICO'S SECOND LARGEST BANK ELEKTRA THE COUNTRY'S LARGEST CONSUMER ELECTRONICS CHAIN AND ORGANIZACION RADIO CENTRO A LARGE OPERATOR OF RADIO STATIONS A THIRD GROUP CONSISTS OF ADRIAN SADA A MONTERREY GLASS AND BANKING INDUSTRIALIST CLEMENTE SERNA ALVEAR A RADIO AND TELEVISION OPERATOR AND JOAQUIN VARGAS GOMEZ OWNER OF MULTIVISION A CABLE SERVICE A MEXICAN MEDIA REPORT SAID THAT JAVIER PEREZ DE ANDA A RADIO OPERATOR WITH 160 STATIONS ALSO REGISTERED MEDIA SOURCES SAID HE MIGHT LATER JOIN THE SADA GROUP THE GOVERNMENT WILL INVITE THOSE BIDDERS IT CONSIDERS COMPETENT TO RUN THE MEDIA COMPANIES TO MAKE FORMAL OFFERS 9304020112 930402 FREE TRADE ACCORD CLEARS CANADA COMMONS HURDLE OTTAWA THE CANADIAN HOUSE OF COMMONS APPROVED IN PRINCIPLE LEGISLATION TO IMPLEMENT THE NORTH AMERICAN FREE TRADE AGREEMENT REACHED LAST YEAR BY THE US CANADA AND MEXICO THE LEGISLATION WAS SENT TO A HOUSE OF COMMONS LEGISLATIVE COMMITTEE WHICH WILL HOLD HEARINGS ON THE PACT AND EXAMINE IT IN DETAIL TRADE MINISTER MICHAEL WILSON URGED BUSINESSMEN TO PROMOTE THE ACCORD AMONG CANADIANS OPINION POLLS INDICATE MANY CANADIANS BELIEVE THE US AND MEXICO WILL BENEFIT MORE FROM THE AGREEMENT THAN CANADA YOU KNOW THE IMPORTANCE OF THIS AGREEMENT TO CANADA'S CONTINUED PROSPERITY MR WILSON TOLD THE BUSINESSMEN I URGE YOU TO GET THIS MESSAGE OUT TO CANADIANS THE TRADE PACT WHICH IS TO TAKE EFFECT JAN 1 1994 WOULD GRADUALLY DISMANTLE TRADE BARRIERS AMONG THE THREE COUNTRIES IT ALSO NEEDS TO BE APPROVED BY THE US CONGRESS AND THE MEXICAN LEGISLATURE MR WILSON AND US TRADE REPRESENTATIVE MICKEY KANTOR ARE TO MEET IN OTTAWA TODAY TO REVIEW TRADE ISSUES INCLUDING A US DEMAND FOR SIDE AGREEMENTS TO THE NAFTA PACT COVERING ENVIRONMENTAL AND LABOR MATTERS 9304020111 930402 LETTERS TO THE EDITOR FILING A SUIT AGAINST FATE LET'S MAKE A BUCK ON TRAGEDY WE SAY YOUR MARCH 2 ARTICLE ON THE LAWSUITS STEMMING FROM THE WORLD TRADE CENTER EXPLOSION CHANCES MIXED FOR LAWSUITS OVER BOMBING SADDENED ME I WAS A VICTIM OF A WORKPLACE INJURY YET I HAVE HAD NO THOUGHTS ABOUT SUING MY FORMER EMPLOYER THE AMERICAN RED CROSS WHEN I WAS A SHELTER MANAGER DURING LAST YEAR'S HURRICANE ANDREW THE ROOF CAVED IN ON MY SHELTER'S 1600 RESIDENTS THE LIGAMENTS AND CARTILAGE IN MY KNEE WERE TORN IN A LIFE EXPERIENCE LIKE NO OTHER THE INJURED AND UNINJURED FRAIL AND NOTSOFRAIL BANDED TOGETHER TO HELP ONE ANOTHER OUT OF THE COLLAPSING BUILDING AND INTO A BASEMENT DURING THE STORM'S WORST WINDS SHOULD WE SUE THE RED CROSS OR MIAMI DADE COMMUNITY COLLEGE WHICH OWNED THE BUILDING FOR PAIN SUFFERING LOSS OF WORK MEDICAL COSTS NEAR LOSS OF LIFE AND THE RESULTING EMOTIONAL TRAUMA WE EXPERIENCED THEM ALL IN ANDREW BUT I THINK A LAWSUIT IS RIDICULOUS I LOST MY HOME EVERYTHING I OWN AND I STILL HAVE NIGHTMARES THE VICTIMS OF THE OAKLAND FIRE THE LOS ANGELES RIOTS AND THE LOMA PRIETA EARTHQUAKE EXPERIENCED THESE EVENTS TOO THESE THINGS HAPPEN BUT WHAT PRICE RECOVERY HAVE WE AS A NATION BECOME SO GREEDY THAT WE CANNOT RECOVER FROM HARD TIMES WITHOUT THE AID OF A LAWYER THAT'S WHAT THE VICTIMS OF THE WORLD TRADE CENTER BLAST SHOULD THINK ABOUT OUR NATION SENDS ITS SYMPATHIES TO THOSE WHO DIED OR SUSTAINED INJURY BUT SUE SUE WHOM 9304020110 930402 THAI AIRWAYS CANCELS AIRCRAFT PURCHASES FROM AIRBUS BOEING SPECIAL TO THE WALL STREET JOURNAL BANGKOK THAI AIRWAYS SAID IT IS CANCELING PURCHASE OPTIONS ON SEVEN AIRBUS INDUSTRIE A330S AND SIX BOEING CO 777S AND WILL DELAY DELIVERY OF SEVEN AIRBUS A330S AND ONE BOEING 747400 FOR 12 TO 15 MONTHS THE GOVERNMENTOWNED AIRLINE THAILAND'S FLAG CARRIER SAID THE MOVE WAS BEING CARRIED OUT TO CONSERVE REVENUE THE CARRIER'S PROFIT IN THE FISCAL FIRST QUARTER FELL TWO BILLION BAHT 788 MILLION SHORT OF PROJECTIONS WHILE THE CANCELLATIONS WEREN'T EXPECTED THAI AIRWAYS DID SAY LAST MONTH THAT IT WAS REVIEWING ITS INTERNAL PLAN AND WAS LIKELY TO DELAY DELIVERY OF FOUR TO 12 AIRCRAFT THE CANCELLATIONS AND DELAYS FROM THAI AIRWAYS ARE JUST THE LATEST IN A CONSTANT SERIES OF BLOWS TO AIRCRAFT MAKERS AS AIRLINES AROUND THE WORLD HAVE HAD TO CUT BACK ON PLANNED JET PURCHASES THAI AIRWAYS HAS COME UNDER INCREASING PRESSURE TO CUT COSTS SINCE MANAGEMENT CONTROL WAS TRANSFERRED TO THE TRANSPORTATION AND COMMUNICATIONS MINISTRY FROM THE FINANCE MINISTRY LAST MONTH THE COMPANY SAID IT HASN'T ALTERED ITS PROFIT PROJECTIONS WHICH CALL FOR NET INCOME OF 61 BILLION BAHT IN THE YEAR ENDING SEPT 30 THAI AIRWAYS ALSO SAID THAT TO BOOST INCOME IT WILL LAUNCH A FREQUENTFLIER PROGRAM IN JULY AND WILL OFFER 30 FARE DISCOUNTS ON DOMESTIC FLIGHTS FROM APRIL THROUGH SEPTEMBER 9304020109 930402 BUSINESS BRIEFS SEVENSON ENVIRONMENTAL SERVICES INC WON A MULTIYEAR CONTRACT FOR ENVIRONMENTAL CLEANUP AT THE MARATHON BATTERY SUPERFUND SITE IN COLD SPRING NY PENN VIRGINIA CORP SOLD ITS LIMESTONE PRODUCTS CORP DIVISION TO THE UNIT'S MANAGERS TERMS WEREN'T DISCLOSED RESOLUTION TRUST CORP COMPLETED ITS PREVIOUSLY ANNOUNCED AGREEMENT TO PAY LSB INDUSTRIES INC'S EQUITY BANK FOR SAVINGS UNIT ABOUT 14 MILLION TO END THE ASSISTANCE AGREEMENT SIGNED WHEN LSB BOUGHT EQUITY IN 1988 UNITED DOMINION REALTY TRUST INC BOUGHT A 296UNIT GARDEN APARTMENT AND TOWNHOUSE COMMUNITY IN ORLANDO FLA FOR 93 MILLION FROM CENTURY PROPERTIES FUND XVII ABB GROUP'S US UNIT GOT A CONTRACT FROM CHRYSLER CORP TO PROVIDE MORE THAN 300 INDUSTRIAL ROBOTS FOR SPOT WELDING SEALANT AND MATERIAL HANDLING APPLICATIONS VENCOR INC ACQUIRED THE 65BED DOWNTOWN GENERAL HOSPITAL IN CHATTANOOGA TENN TERMS WEREN'T DISCLOSED 9304020108 930402 DIVIDEND NEWS AMAX TO OMIT PAYOUT FOR SECOND QUARTER UNIT EXPECTS A LOSS NEW YORK AMAX INC SAID IT WILL OMIT ITS SECONDQUARTER DIVIDEND ON COMMON STOCK TO PRESERVE CASH BECAUSE OF LOW PRICES OF ALUMINUM AND OTHER METALS THE GOLD AND COAL MINING COMPANY AND ALUMINUM PRODUCER CUT ITS DIVIDEND IN THE FIRST QUARTER TO 10 CENTS A SHARE FROM 20 CENTS A SHARE PAID QUARTERLY IN 1992 COMPANY CHAIRMAN ALLEN BORN SAID AMAX IS ACTING PRUDENTLY TO CONSERVE CASH AND IMPROVE FINANCIAL FLEXIBILITY CURRENT ALUMINUM SPOT PRICES ARE ABOUT 51 CENTS A POUND COMPARED WITH 58 CENTS A POUND A YEAR AGO AND 65 CENTS A POUND TWO YEARS AGO GOLD PRICES HAVE DECLINED ABOUT 5 OVER THE PAST YEAR THE COMPANY DECLARED REGULAR QUARTERLY DIVIDENDS ON ITS TWO SERIES OF CONVERTIBLE PREFERRED STOCK IN ADDITION THE COMPANY'S 68OWNED AMAX GOLD INC SAID IT EXPECTS TO REPORT A FIRSTQUARTER LOSS OF EIGHT CENTS TO 10 CENTS A SHARE THE COMPANY SAID IT EXPECTS THE LOSS BECAUSE OF SEVERE WINTER WEATHER AT ITS HAYDEN HILL GOLD MINE IN CALIFORNIA LOW ORE GRADES AT THE HAYDEN HILL MILL AND LOW MILLING ORE GRADES AT THE SLEEPER GOLD MINE IN NEVADA IN THE YEARAGO FIRST QUARTER AMAX GOLD EARNED 4 MILLION OR FIVE CENTS A SHARE ON SALES OF 272 MILLION THE COMPANY ALSO SAID IT COMPLETED THE PROCESSING PLANT AT ITS 90OWNED GUANACO MINE IN NORTHERN CHILE AND EXPECTS GOLD PRODUCTION TO BEGIN THIS MONTH PRODUCTION THERE IS EXPECTED TO INCREASE TO BETWEEN 60000 AND 80000 OUNCES ANNUALLY 9304020107 930402 BUSINESS BRIEF VALLEY SYSTEMS INC COMPANY SETTLES LAWSUIT BROUGHT BY ITS SHAREHOLDERS VALLEY SYSTEMS INC CANAL FULTON OHIO SAID IT SETTLED A CLASSACTION LAWSUIT FILED BY SHAREHOLDERS WHO CHARGED THE INDUSTRIAL CLEANING COMPANY WITH MISREPRESENTING ITS FINANCES IN EXCHANGE FOR THE DISMISSAL OF ALL CLAIMS VALLEY SYSTEMS AGREED TO ISSUE THE HOLDERS 675000 SHARES OF COMMON STOCK AND WARRANTS FOR AN ADDITIONAL 60000 SHARES ITS INSURER WILL ALSO MAKE A PAYMENT OF 1850000 IN OCTOBER VALLEY SYSTEMS STOCK PLUNGED AFTER THE COMPANY SAID IT WOULD POST UNEXPECTED LOSSES AND THAT IT HAD BREACHED THE TERMS OF ITS CREDIT FACILITY THE COMPANY'S CHIEF FINANCIAL OFFICER RESIGNED AFTER AN AUDIT VALLEY SYSTEMS IS 70OWNED BY ROLLINS INVESTMENT FUND ATLANTA 9304020106 930402 CREDIT MARKETS TREASURY NOTE BOND PRICES END MOSTLY LOWER IN LIGHT SESSION AHEAD OF TODAY'S JOBS DATA BY ABBY SCHULTZ AND TERENCE DONNELLY SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS ENDED MOSTLY LOWER IN THIN TRADING YESTERDAY AS INVESTORS KEPT TO THE SIDELINES AND DEALERS PREPARED FOR TODAY'S SLATED RELEASE OF THE MARCH EMPLOYMENT REPORT THE TREASURY'S BENCHMARK 30YEAR BOND DROPPED 1/2 POINT TO 101 30/32 FROM 102 14/32 ON WEDNESDAY THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE ROSE TO 696 FROM 693 THE 10YEAR NOTE DROPPED MORE THAN 1/4 POINT TO 101 12/32 TO YIELD 605 UP FROM 602 THE MARKET FAILED TO HOLD GAINS POSTED EARLY IN THE DAY AFTER THE LABOR DEPARTMENT REPORTED INITIAL JOBLESS CLAIMS ROSE MORE THAN ANTICIPATED EXPECTATIONS WERE FOR A 3000 DECLINE BUT INSTEAD CLAIMS ROSE 33000 TO 380000 IN THE WEEK ENDED MARCH 27 THERE WAS ALSO A BRIEF REACTION TO THE MIDMORNING RELEASE OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDEX WHICH FELL TO 534 IN MARCH FROM 558 IN FEBRUARY A READING ABOVE 50 INDICATES EXPANSION IN MANUFACTURING A READING BELOW 50 INDICATES CONTRACTION DESPITE THE DATA THE MORNING RALLY WAS CUT SHORT THE MARKET'S DOWNWARD CHARGE WAS LED BY THE 30YEAR BOND SAID JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC THE MARKET WAS FOR SALE A GROWING NUMBER OF TREASURY PARTICIPANTS BELIEVE THE MARKET HAS SEEN ITS BEST LEVELS AND THAT ANY ATTEMPT TO PUSH PRICES HIGHER WILL FAIL MR KENNEY SAID THE STREET IS ANTICIPATING A LARGE REVISION MR KENNEY SAID IF THERE IS NOT I DON'T KNOW WHAT THE MARKET IS GOING TO DO MARCH NONFARM PAYROLLS ARE EXPECTED TO HAVE RISEN BY 73000 ACCORDING TO A CONSENSUS OF ECONOMISTS BY DOW JONES CAPITAL MARKETS REPORT LATE IN THE DAY THE FEDERAL RESERVE REPORTED THAT THE WIDELY WATCHED MEASURE OF MONEY SUPPLY KNOWN AS M2 FELL 800 MILLION IN THE WEEK ENDED MARCH 22 THAT PUTS M2 GROWTH RATE AT NEGATIVE 21 FROM THE FOURTH QUARTER BASE OF LAST YEAR FAR BELOW THE FED'S TARGET OF 2 TO 6 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 NEWS OF THE DECLINE IN M2 HAD NO SIGNIFICANT IMPACT ON THE MARKET A 1 BILLION INCREASE WAS ANTICIPATED IN A CONSENSUS OF ECONOMISTS AS IS TYPICAL AHEAD OF THE MONTHLY EMPLOYMENT REPORT TRADING WAS QUIET YESTERDAY MONEY MANAGERS WANT TO LOOK AT THE NUMBER BEFORE THEY MAKE ANY MAJOR COMMITMENTS IN THE MARKET AND DEALERS ARE JUST TRYING TO GET THEMSELVES SITUATED SAID WARD MCCARTHY MANAGING DIRECTOR AT STONE & MCCARTHY ASSOCIATES INC PRINCETON NJ IN VOGUE YESTERDAY WERE TRADES MADE TO TAKE ADVANTAGE OF A WIDENING GAP BETWEEN SHORTTERM AND LONGTERM INTEREST RATES SAID MR MCCARTHY A WIDENING TREND HAS BECOME MORE EVIDENT IN RECENT DAYS AS THE YIELD ON THE TWOYEAR NOTE HAS EDGED LOWER AND THE YIELD ON THE 30YEAR BOND HAS RISEN BY MIDAFTERNOON YESTERDAY THE SPREAD BETWEEN THE TWOYEAR NOTE AND 30YEAR BOND STOOD AT 302 PERCENTAGE POINTS UP 004 PERCENTAGE POINT FROM LATE WEDNESDAY AND AT ITS WIDEST IN NEARLY A MONTH BY THE END OF THE DAY THE GAP NARROWED SLIGHTLY TO 301 PERCENTAGE POINT TO CAPITALIZE ON THE WIDENING GAP DEALERS BOUGHT TWOYEAR NOTES AND SOLD NOTES MATURING IN FIVE TO 10 YEARS VOLUME WAS HEAVIEST IN THESE SECURITIES BONDS OF THE NATION'S CABLE COMPANIES SLUMPED IN THE WAKE OF A FEDERAL COMMUNICATIONS COMMISSION RULING TO CUT BASIC MONTHLY CABLE TELEVISION RATES BY 10 IN THE BROADER SECONDARY MARKET THE FOCUS REMAINED FIXED ON TODAY'S MARCH EMPLOYMENT REPORT INVESTMENTGRADE ISSUES ENDED FLAT TO 3/8 POINT LOWER ECHOING WEAKNESS IN THE TREASURY MARKET JUNK BONDS SLIPPED 1/2 POINT IN LIGHT VOLUME WITH DEALERS DOING MUCH OF THE SELLING TRADERS SAID RISING INTERMEDIATE AND LONGTERM INTEREST RATES REDUCED THE INCENTIVE FOR COMPANIES TO SELL NEW DEBT YESTERDAY AND FEW COMPANIES CAME TO THE MARKET THE FCC RULING WHICH HAD BEEN EXPECTED SINCE PASSAGE OF THE CABLE TELEVISION CONSUMER PROTECTION AND COMPETITION ACT IN DECEMBER SENT CABLE BOND PRICES TUMBLING AS MUCH AS THREE POINTS THE FCC SAID THE RATE ROLLBACK AND LIMITS ON FURTHER RATE HIKES WOULD SAVE THE NATION'S 56 MILLION CABLE SUBSCRIBERS ROUGHLY 1 BILLION A YEAR HOWEVER THE BONDS REGAINED SOME GROUND LATER WHEN BARGAIN HUNTERS APPEARED SUGGESTING THAT THE IMPLICATIONS FOR THE INDUSTRY REMAIN UNCLEAR INVESTORS SAID THEY WEREN'T VERY WORRIED THAT THE RULING WOULD SUBSTANTIALLY IMPAIR INDUSTRY REVENUES AND CASH FLOW RATIOS AS WITH COMPANIES IN OTHER HIGHLY LEVERAGED SECTORS CABLE PROVIDERS HAVE TAKEN ADVANTAGE OF DECLINING INTEREST RATES TO TRIM THEIR BORROWING COSTS AND IMPROVE THEIR BALANCE SHEETS INVESTORS PREDICTED THAT THESE COST SAVINGS WOULD PARTLY OFFSET THE RATE CUT IF THIS RULING HAD COME DOWN A FEW YEARS AGO WHEN CABLE COMPANIES OFFERED LITTLE MORE THAN BASIC CABLE SERVICES I'D BE CONCERNED SAID FREDERICK LYNN PRESIDENT OF FAL CAPITAL MANAGEMENT INC OF NORWALK CONN AND A FREQUENT CABLE BOND INVESTOR BUT NOW THEY PROVIDE A WIDER VARIETY OF PREMIUM STATIONS AND PAYPERVIEW EVENTS THESE ARE NEW AVENUES OF GROWTH THAT ARE NOT LIKELY TO BE AFFECTED BY GOVERNMENT REGULATION HE SAID THE FCC RULING IS GEARED TO INCREASE COMPETITION IN THOSE CABLE TELEVISION MARKETS WHERE ONLY ONE CABLE COMPANY OPERATES THESE MARKETS COMPRISE ABOUT TWOTHIRDS OF THE NATION'S CABLE MARKETS TRADERS SAID CABLE BONDS DROPPED IMMEDIATELY FOLLOWING NEWS OF THE RULING ON RUMORS THAT THE DECISION WOULD REQUIRE CABLE COMPANIES TO GIVE IMMEDIATE REBATES TO CONSUMERS LATER IT APPEARED THAT ONLY A FEW COMPANIES WOULD BE FORCED IN THE FUTURE TO ROLL BACK FEES CONSIDERED EXCESSIVE WHICH BROUGHT BUYERS BACK INTO THE MARKET COMCAST CORP'S 1025 SENIOR SUBORDINATED DEBENTURES MATURING IN 2001 FELL ABOUT TWO POINTS TO 107 AFTER THE FCC RULING WAS ANNOUNCED BUT BY LATE TRADING THE BONDS HAD CREPT BACK TO 108 BONDS OF OTHER CABLE COMPANIES SUCH AS ADELPHIA COMMUNICATIONS CORP AND CABLEVISION SYSTEMS CORP ALSO DECLINED AFTER THE FCC RULING PRICES OF MUNICIPAL BONDS ENDED VIRTUALLY UNCHANGED AFTER A CALM SESSION WHILE THE LONGTERM OUTLOOK FOR TAXEXEMPT ISSUES IS POSITIVE DUE TO THE CLINTON ADMINISTRATION'S PLAN FOR HIGHER FEDERAL INCOME TAXES CONCERNS ABOUT HEAVY ISSUANCE ARE EXPECTED TO KEEP A LID ON MUNI PRICES IN THE SHORT RUN IN THE FIRST QUARTER THERE WERE RECORD PRICINGS OF LONGTERM MUNICIPAL SECURITIES TOTALING APPROXIMATELY 646 BILLION YESTERDAY HOWEVER NEW ISSUANCE WAS LIGHT AMONG THE FEW ISSUES PRICED WAS THE WEST VIRGINIA WATER DEVELOPMENT AUTHORITY'S 874 MILLION OF REVENUE AND REVENUE REFUNDING BONDS PAINEWEBBER INC IS THE MANAGING UNDERWRITER FOR THE SECURITIES INCLUDED IN THE OFFERING ARE 681 MILLION OF 1993 SERIES AII WATER DEVELOPMENT REVENUE REFUNDING BONDS AND 193 MILLION OF 1993 SERIES BII WATER DEVELOPMENT REVENUE BONDS REOFFERED SERIES AII BONDS WERE PRICED TO YIELD FROM 310 IN 1994 TO 610 IN 2029 AND REOFFERED SERIES BII BONDS WERE PRICED TO YIELD FROM 310 IN 1994 TO 612 IN 2033 ALL OF THE BONDS ARE INSURED BY FINANCIAL SECURITY ASSURANCE INC AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP PREPAYMENTS ROSE SHARPLY ON SOME FEDERAL HOME LOAN MORTGAGE CORP SECURITIES RECENTLY CONFIRMING INVESTORS' WORST FEARS BUT BECAUSE THE INCREASE HAD BEEN ANTICIPATED WEEKS AGO THE NEWS HAD LITTLE IMPACT ON PRICES YESTERDAY IN SECONDARY TRADING OF 7 ISSUES FOR APRIL DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES DECLINED 7/32 TO 100 5/32 FREDDIE MAC GOLD ISSUES SLIPPED 6/32 TO 100 16/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES LOST 6/32 TO 100 10/32 PREPAYMENTS HAD BEEN EXPECTED TO SURGE AS LOW MORTGAGE RATES SPURRED MORTGAGE REFINANCINGS FREDDIE MAC DATA FOR MIDFEBRUARY TO MIDMARCH INDICATED ITS GOLD 8 ISSUES PREPAID AROUND 60 FASTER WHILE 85 ISSUES PREPAID AS MUCH AS 50 FASTER IN COMPARISON WITH MIDJANUARY TO MIDFEBRUARY LARGER PREPAYMENT GAINS MAY BE EVIDENT WHEN FANNIE MAE NEXT WEEK REPORTS DATA FOR THE FULL MONTH OF MARCH IN A MORE FORWARDLOOKING REPORT NEXT WEEK ACCORDING TO DEEPAK NARULA VICE PRESIDENT OF MORTGAGE STRATEGIES AT LEHMAN BROTHERS WITH THIS GENERALLY FACTORED INTO PRICES ALREADY MORTGAGE SECURITIES HAVE BEEN HOLDING UP RELATIVELY WELL COMPARED WITH TREASURYS IN RECENT DAYS AND IN SOME CASES ARE LOOKING ATTRACTIVE HE SAYS 9304020105 930402 IN VERMONT A MAN FOR ALL SEASONS HAS BOOTS IN HIS TRUNK SOME SAY THIS MUD SEASON IS WORST BEST IN 45 YEARS FOLKS OFTEN STICK TOGETHER BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL NORTHFIELD VT NEITHER SNOW NOR RAIN NOR HEAT KEEPS THE POSTMAN FROM THE SWIFT COMPLETION OF HIS APPOINTED ROUNDS BUT VERMONT MUD THAT'S ANOTHER MATTER A MAIL CARRIER GOT HOPELESSLY MIRED IN MORE THAN TWO FEET OF THICK GELATINOUS MUD ON A COUNTRY ROAD HERE MONDAY IN HIS 4WHEEL DRIVE JEEP CHEROKEE NO LESS A TRACTOR CAME TO PULL HIM OUT AND IT ALMOST GOT STUCK SAYS POSTMASTER JOHN MAJOR THE MAIL EVENTUALLY GOT DELIVERED THOUGH HOURS LATE THIS IS THE WORST IT'S BEEN IN 45 YEARS IT IS MUD SEASON IN VERMONT A BRIEF BUT UNFORGETTABLE PERIOD BETWEEN WINTER AND SPRING WHERE THE PAVEMENT ENDS DANGER BEGINS SCHOOL IN THIS HAMLET IN CENTRAL VERMONT WAS CALLED OFF LAST FRIDAY ON ACCOUNT OF MUD LOST CAR MUFFLERS DOT THE ROADSIDE LIKE COW SKULLS ALONGSIDE TRAILS IN THE OLD WEST IT'S IMPASSABLE MARVELS BRUCE PILVELAIT AN ENGINEERING PROFESSOR WHO MOVED HERE FROM CONNECTICUT LAST YEAR WITH HIS WIFE KIM TO GET HOME THEY PARK SEVERAL MILES AWAY AND HIKE DURING THE WINTER PEOPLE SAID DON'T WORRY ABOUT ALL THIS SNOW BECAUSE MUD SEASON WILL MAKE THIS SEEM LIKE A PICNIC' AND IT DOES MUD SEASON BEGINS AS THE FROST THAWS BECAUSE THE GROUND THAWS FROM THE TOP DOWN THE MOISTURE GETS TRAPPED ABOVE THE FROZEN LAYER SEVERAL FEET BELOW AND HAS NOWHERE TO GO THE RESULT INSTANT GOOP OR AS UNIVERSITY OF VERMONT GEOLOGY PROF DAVID BUCKE EXPLAINS MUCH OF THE SOIL UP HERE IS CLAY RICH WHICH IS WHAT MAKES IT MUDDY CLAY IS PRETTY IMPERMEABLE SO WATER GOES THROUGH SLOW BUT I DON'T KNOW THAT OUR MUD IS REAL UNIQUE DON'T TELL THAT TO VERMONTERS OTHER STATES MAY HAVE MUD SEASON TOO BUT IT IS A MATTER OF LOCAL PRIDE TO PEOPLE HERE SOME PEOPLE ARE CALLING THIS THE MUDDER OF ALL MUD SEASONS SAYS STATE ARCHIVIST GREGORY SANFORD WE BRAG ABOUT HOW COLD IT IS HOW LARGE THE BLACK FLIES ARE AND HOW DEEP THE MUD IS OWING IN LARGE PART TO THEIR LEGENDARY NEW ENGLAND FRUGALITY VERMONTERS HAVE A LOT TO BOAST ABOUT THERE ARE SOME 8000 MILES OF UNPAVED ROADS AND JUST 6000 MILES OF PAVED ONES EVEN MY MOTHER IN WEST VIRGINIA IS AMAZED AT THE NUMBER OF UNPAVED ROADS HERE SAYS CAROLINE STEVENS AN ACCOUNTANT IN THIS TOWN IN THE MIDDLE OF THE MUD BELT BUT WOE TO ANYONE ESPECIALLY A RECENT ARRIVAL WITH THE TEMERITY TO SUGGEST THAT MAYBE MORE ROADS SHOULD BE PAVED IF YOU'RE AN OUTSIDER WHO MOVES TO A PLACE THAT ANY VERMONTER IN HIS RIGHT MIND WOULDN'T MOVE TO THAT'S YOUR TOUGH LUCK SAYS STEPHEN LICKWAR A STATE WORKER WHO LIVES ON A DIRT ROAD IN DUXBURY MICHAEL HEFFERNAN OF CALAIS RECALLS ONE PARTICULARLY BAD YEAR WHEN THE ROAD IN FRONT OF HIS HOUSE BECAME A QUAGMIRE THREE CARS GOT STUCK IN THERE AT THE SAME TIME ONE DAY PEOPLE WERE KNOCKING ON OUR DOOR AT ALL HOURS OF THE MORNING AND EVENING WE THOUGHT OF PUTTING UP A SIGN AT THE END OF THE DRIVEWAY ADVERTISING FREE COFFEE DOUGHNUTS AND USE OF OUR TELEPHONE TO CALL A TOW TRUCK THEN THERE WAS THE TIME IN EARLY APRIL A COUPLE OF YEARS AGO THAT RONALD LACKEY OWNER OF FALLS GENERAL STORE IN NORTHFIELD DROVE TO A NEARBY LAKE TO SEE IF THE ICE WAS BROKEN UP ENOUGH THAT HE COULD PUT HIS BOAT IN WE SUNK THE CAR RIGHT UP TO ITS FRAME THEN WE GOT OUT AND SUNK RIGHT UP TO OUR KNEES HE SAYS HE NOW WAITS TILL THE BEGINNING OF MAY MR SANFORD THE STATE ARCHIVIST WHO LIVES ON A DIRT ROAD OFF A DIRT ROAD REMEMBERS RETURNING FROM BOSTON AT THE HEIGHT OF MUD SEASON LATE ONE NIGHT SEVERAL YEARS AGO I COULD SEE THE LIGHTS OF MY HOUSE AND SAID I'M GOING TO GO THROUGH' I TRIED AND DIDN'T WITH HIS CAR STUCK IN MUD OVER ITS AXLES OR BOTTOMED OUT AS LOCALS SAY HE WALKED HOME THROUGH THE MUD AND RETURNED WITH A SECOND CAR TO RESCUE THE FIRST ONE I PULLED OFF THE ENTIRE COOLING SYSTEM HE SAYS I TRY TO BLOT ALL THAT OUT OF MY MEMORY EVEN PROFESSIONALS HAVE TROUBLE WITH MUD OFTENTIMES WE NEED TO PULL OUT THE FIRST WRECKER WITH ANOTHER WRECKER SAYS PATRICK MALONE OWNER OF CENTRAL VERMONT TOWING IN MONTPELIER IT IS MUCH HARDER TO FREE VEHICLES STUCK IN MUD THAN CARS STUCK IN SNOW HE ADDS YOU CAN'T HOOK ONTO A BUMPER YOU'LL TAKE IT RIGHT OFF AND THE SUCTION IS PRETTY SEVERE PULLING OUT A TRUCK THAT WEIGHS 25000 POUNDS YOU MAY BE PULLING THE EQUIVALENT OF 75000 POUNDS EVEN WORSE SOMETIMES CARS THAT ARE STUCK IN THE EVENING ARE THEN FROZEN SOLID IN THE MUD WHEN THE TEMPERATURE DROPS OVERNIGHT WHEN THIS HAPPENS IT IS BEST TO WAIT TILL THE MUD MELTS THE NEXT DAY BUT SIMPLY NOT GETTING STUCK DOESN'T SOLVE ALL YOUR PROBLEMS EITHER CARS THAT DO MANAGE TO TRAVERSE A MUDDY ROAD PICK UP THICK LAYERS OF GLOP IN THE WHEELS AND THE UNDERCARRIAGE MAKING THEM ALL BUT UNDRIVEABLE WHEN THEY GET OUT ON A REAL ROAD TWO YEARS AGO AFTER MUD SEASON I THOUGHT I'D THROWN MY ALIGNMENT OUT SAYS PROF BUCKE OF THE UNIVERSITY OF VERMONT THE TIRES WERE SHIMMYING AND SHAKING WHEN I TOOK IT IN TO A GARAGE THEY FOUND FIVE POUNDS OF DIRT CAKED BEHIND THE HUBCAPS AS ANY VERMONTER KNOWS COPING WITH MUD SEASON CAN BE MADE EASIER BY FOLLOWING A FEW RULES ALWAYS CARRY A TOW CHAIN AND HIGH RUBBER BOOTS IN YOUR CAR BUY A HIGHPRESSURE HOSE NOZZLE TO CLEAN OFF THE UNDERSIDE OF YOUR CAR MAKE FRIENDS WITH NEARBY FARMERS WHO CAN PULL YOU OUT WITH THEIR TRACTORS AND ADVISES MILAN LAWSON A MAINTENANCE ENGINEER AT THE VERMONT TRANSPORTATION AGENCY IF YOU'RE GOING TO GET STUCK GET STUCK IN THE MIDDLE OF THE ROAD THAT WAY SOMEBODY WILL HAVE TO HELP YOU IF THEY WANT TO GET BY JUST AS NO SELFRESPECTING SOUTHERN CALIFORNIAN WOULD THINK OF BUILDING A HOUSE WITHOUT A POOL NO SANE VERMONTER WOULD LIVE IN A COUNTRY HOUSE WITHOUT A MUD ROOM WHEN WE BUILT OUR HOUSE WE MADE IT SO YOU ENTER INTO THE CELLAR SO YOU CUT DOWN ON THE AMOUNT OF MUD YOU BRING INTO THE HOUSE EXPLAINS JANE FOOTE OF DUXBURY ALL THIS LEADS FOLKS ELSEWHERE TO WONDER WHY ANYONE CHOOSES TO LIVE ON A DIRT ROAD IN AN ERA OF EIGHTLANE SUPERHIGHWAYS VIGGO CARSTENSEN HAS THE ANSWER A TAX AND BUSINESS CONSULTANT WHO NOW WORKS OUT OF HIS HOME HE LEFT MANHATTAN EIGHT YEARS AGO AND COULD HAVE CHOSEN TO LIVE ANYWHERE HE WANTED HE CHOSE LOOP ROAD HERE WHICH TODAY IS A SOUPY MUCK BUT POINTING TO THE FORESTED SNOWCOVERED MOUNTAINS BEHIND HIS HOUSE AND PAUSING TO ABSORB THE SURROUNDING SILENCE HE SAYS SIMPLY THIS IS WHY I'M HERE SOME VERMONTERS EVEN SEE A BLESSING IN THE MUD THERE NEEDS TO BE A REMINDER OCCASIONALLY THAT WE LIVE IN THE WORLD AND CERTAINLY MUD SEASON IS ONE OF THOSE REMINDERS SAYS MR SANFORD THE STATE ARCHIVIST SOMETIMES YOU CAN'T GO SOMEWHERE YOU CAN'T DRIVE THROUGH A CERTAIN STRETCH OF ROAD OCCASIONALLY THAT'S HEALTHY FOR ONE'S MINDSET 9304020104 930402 NOW ROVER WILL LICK YOUR FACE EVEN IF HE HATES THE SIGHT OF YOU BY RACHEL KESSLER STAFF REPORTER OF THE WALL STREET JOURNAL AT A GROWING NUMBER OF BAKERIES YOU CAN HAVE YOUR FACE AND EAT IT TOO JUST BEFORE HIS SEVENTH BIRTHDAY LAST YEAR BRYAN WALLACE OF WHITESBURG GA WAS FITTED WITH GLASSES SO AT CAKE SHOPPE TOO HIS PARENTS HAD A PHOTOGRAPH OF THEIR SON IN HIS NEW SPECS TRANSFERRED IN FOOD COLORING ONTO HIS BIRTHDAY CAKE USING A CAKEDECORATING COMPUTER MADE BY SWEET ART DIVISION KAUFFMANN MACHINE SHOP OLATHE KAN NEARLY 150 BAKERIES NOW OFFER PORTRAIT CAKES IN NEW YORK ANN MARIE CALZOLARI WANTED SOMETHING DIFFERENT ON VALENTINE'S DAY SO SHE HAD A CAKE MADE WITH A PHOTO OF HER BOYFRIEND'S FACE TRANSFERRED ONTO A CARTOON OF A NAKED MAN'S BODY COMPLETE WITH COCONUT SHAVINGS FOR CHEST HAIR CLIMBING A TELEPHONE POLE SHE SAYS HER BOYFRIEND WHO WORKS FOR NEW YORK TELEPHONE WAS HYSTERICAL PETS ARE ALSO POPULAR SUBJECTS WHEN KANSAS SEN BOB DOLE'S DOG LEADER FATHERED THE PUPPIES OF SOUTH CAROLINA SEN STROM THURMOND'S BITCH CHELSEA THE PROUD MR DOLE ORDERED A CAKE WITH A PHOTO OF HIS DOG AND THE PUPS FROM HEIDELBERG PASTRY SHOPPE ARLINGTON VA THE SENATE REPUBLICAN LEADER A FREQUENT PORTRAITCAKE CONSUMER SAYS THIS TASTY TECHNOLOGY HAS HELPED MAKE SEVERAL CAPITOL HILL EVENTS PICTUREPERFECT AND THE KANSAS CONNECTION IS THE ICING ON THE CAKE BUT A CAKE PICTURE OF YOUR SCHNAUZER IS PLAIN VANILLA COMPARED WITH WHAT SOME PEOPLE DO AT CAKE PALACE IN BATON ROUGE LA A WOMAN HAD A PHOTO OF HER PET SOW PENELOPE PUT ON A CAKE TO BE EATEN BY THE LUCKY BIRTHDAY PIG IN ALEXANDRIA LA A WOMAN BUYS TWO PORTRAIT CAKES EVERY YEAR AT ATWOOD'S BAKERY SAYS OWNER MARK ATWOOD ONE FOR HER HUSBAND'S BIRTHDAY AND ONE FOR HER HORSE'S BIRTHDAY FUNNY THING MR ATWOOD ADDS THE HORSE KNOWS THAT THE CAKE IS FOR HIM CAKEART HUMOR FOR HUMANS CAN BE CUTTING KAREN ENDERUD'S 40THBIRTHDAY CAKE FROM SMILE MAKER IN DOWNEY CALIF DIDN'T HAVE THE USUAL PINK ROSES THERE WERE ROSES ALL RIGHT BUT THEY WERE BLACK AND ATOP THE CAKE WAS A PHOTO OF A VULTURE ON A TOMBSTONE ONE NEW YORK WOMAN COULDN'T FACE UP TO HER OWN PORTRAIT IN PASTRY ZINA FRIIA SAYS A 50TH WEDDINGANNIVERSARY CAKE FROM PIAZZA BAKERY ON STATEN ISLAND NY WAS A BIG HIT BUT HOW COULD YOU PUT A KNIFE IN YOUR FACE SHE ASKS SO SHE HAD A FACE LIFT PUTTING THAT UNCUT PART OF THE CAKE IN THE FREEZER 9304020103 930402 SOUTH KOREANS GIVE KIM UPPER HAND AS HE CONFRONTS OFFICIAL CORRUPTION BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA DURING HIS FIRST MONTH IN OFFICE PRESIDENT KIM YOUNG SAM HAS SHOWN A TALENT FOR CHOOSING BATTLES HE CAN WIN ADVANCING SOUTH KOREA'S YOUNG DEMOCRACY IN THE PROCESS THE QUESTION NOW IS WHETHER HE HAS AN APPETITE FOR TRENCH WARFARE MR KIM HAS CONVULSED SOUTH KOREA'S POLITICAL ESTABLISHMENT BY ASKING SENIOR LAWMAKERS AND BUREAUCRATS TO REPORT THEIR FINANCIAL ASSETS THE DISCLOSURES HAVE REVEALED SOME HUGE PERSONAL FORTUNES AND TRIGGERED A PUBLIC UPROAR THAT HAS LED TO THE POLITICAL DOWNFALL OF AT LEAST 16 LEGISLATORS AND SENIOR BUREAUCRATS THE DISCLOSURES ALSO HAVE FAILED TO DIMINISH THE DEEPLY ROOTED CYNICISM OF KOREANS MANY OF WHOM BELIEVE THE BULK OF PUBLICSECTOR WEALTH REMAINS SALTED AWAY IN FALSELY NAMED ACCOUNTS A LEGAL PRACTICE IN SOUTH KOREA BUT MR KIM'S CLEANGOVERNMENT DRIVE HAS EARNED HIM HUGE POPULAR SUPPORT IN A SURVEY COMMISSIONED LAST WEEK 71 OF RESPONDENTS GAVE THE PRESIDENT HIGH MARKS IN SOUTH KOREA PUBLIC OFFICIALS ARE TREATED MORE AS FEUDAL LORDS THAN AS HUMBLE BUREAUCRATS THE FACT THAT THEY ARE VOLUNTARILY DISCLOSING EVEN A PORTION OF THEIR ASSETS MARKS A TRIUMPH FOR SOUTH KOREA'S EVOLVING DEMOCRACY THAT HAS FORTIFIED MR KIM AHEAD OF A LIKELY CLASH BETWEEN HIS REFORMMINDED ADMINISTRATION AND AN ENTRENCHED BUREAUCRACY WEDDED TO THE STATUS QUO FOREMOST AMONG THE CHANGES MR KIM HAS PLEDGED TO INTRODUCE IS A REALNAMES ACCOUNTING SYSTEM WHICH COULD EXPOSE FORTUNES CONCEALED UNDER FALSE NAMES IT WOULD ALSO PROVIDE THE CORNERSTONE OF AN AMBITIOUS PROGRAM AIMED AT MAKING SOUTH KOREA A MORE TRANSPARENT PLACE TO DO BUSINESS SIGNIFICANTLY MR KIM HAS SPARED BUSINESSMEN FROM HIS ANTICORRUPTION SWEEP THIS IS SIGNIFICANT FOR THE TRANSFORMATION OF OUR COUNTRY'S POLITICAL STRUCTURE SAYS AHN CHUNG HEE PROFESSOR OF POLITICAL SCIENCE AT SEOUL NATIONAL UNIVERSITY THE STRONG SUPPORT OF THE PRESIDENT INDICATES THE POWER BASE OF THE COUNTRY IS CHANGING IN THE PAST ALL POWER AND INFLUENCE WAS BASED ON COERCION AND MANIPULATION IT IS NOW SHIFTING TOWARD THE POPULAR WILL PRESIDENT KIM ACCURATELY GAUGED THAT THE PUBLIC MOOD HAD CHANGED TOLERANCE OF OFFICIAL CORRUPTION HAS WANED AS SOUTH KOREA'S DEMOCRACY HAS DEVELOPED AND AS ITS ECONOMY HAS SETTLED INTO A SLUMP FOLLOWING YEARS OF RAPID EXPANSION CURING THE KOREA DISEASE A REFERENCE TO THE NATION'S PERCEIVED ECONOMIC POLITICAL AND MORAL STASIS HAS BECOME THE NEW ADMINISTRATION'S RALLYING CRY HAVING ALREADY REPORTED HIS PERSONAL ASSETS VALUED AT 857000 THE PRESIDENT EARLIER THIS MONTH REQUESTED THAT HIS CABINET APPOINTEES DO THE SAME WITHIN DAYS TWO MEMBERS WERE FORCED TO RESIGN AFTER THEIR DISCLOSURES REVEALED SPECULATIVE DABBLING IN THE PROPERTY MARKET NO ONE CAN ACCUSE THE KIM ADMINISTRATION OF PLAYING FAVORITES THIS WEEK THE GOVERNMENT FIRED FIVE VICE CABINET MINISTERIAL OFFICIALS AFTER APPOINTING THEM ONLY TWO WEEKS AGO FOR MAKING FORTUNES BY ALLEGEDLY ILLEGAL MEANS THE DISCLOSURES HAVE REVEALED NO HARD EVIDENCE OF WRONGDOING UNDER SOUTH KOREA'S VAGUE CAPITALGAINS LAWS BUT THE SHEER SUMS INVOLVED LARGELY ACCUMULATED DURING SEOUL'S REAL ESTATE BOOM IN THE LATE 1980S STRONGLY IMPLY THE TYPE OF GRAFT THAT FOR CENTURIES HAS PERVADED SOUTH KOREA'S POLITICAL CULTURE PROSECUTORS WERE RECENTLY SINGLED OUT AS THE RICHEST CIVIL SERVANTS AT THE VICEMINISTERIAL LEVEL THE JUDICIARY'S CHIEF INVESTIGATOR LED THE LIST WITH 78 MILLION IN LAND APARTMENTS STOCKS AND CASH NOW MODEST LIVING IS IN VOGUE LAWMAKERS AND MINISTERS ELECTED LAST DECEMBER HAVE REFUSED TO MOVE INTO THEIR OFFICIAL RESIDENCES WHICH HAVE BEEN CRITICIZED BY THE LOCAL PRESS AS TOO LUXURIOUS MR KIM CLOSED THE PRESIDENTIAL DRIVING RANGE AND SWORE OFF GOLF FOR HIS FIVEYEAR TERM FOREIGNCAR SALESMEN ALREADY HINDERED BY PROTECTIVE TARIFFS DISCOURAGING IMPORTS HAVE SEEN BUSINESS SQUEAL TO A STANDSTILL 9304020102 930402 LAW LEGAL BEAT DEFENSE RESTS IN KING BEATING TRIAL AFTER JUST ONE DEFENDANT TESTIFIES BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES DEFENSE LAWYERS IN THE RODNEY KING BEATING TRIAL ABRUPTLY RESTED THEIR CASE AFTER ONLY ONE OF THE ACCUSED POLICE OFFICERS HAD TESTIFIED THE MOVE SURPRISED OBSERVERS AND THE PROSECUTION WHICH SCRAMBLED TO SUMMON REBUTTAL WITNESSES EARLIER THAN EXPECTED IT NOW APPEARS THAT THE COUNTRY'S MOST WATCHED TRIAL IN RECENT MEMORY COULD GO TO THE FEDERALCOURT JURY AS EARLY AS THE MIDDLE OF NEXT WEEK ONLY REBUTTAL AND CLOSING STATEMENTS REMAIN IN THE CASE LAWYERS FOR THE FOUR DEFENDANTS ACCUSED OF VIOLATING MR KING'S CIVIL RIGHTS SAID THEY WERE CONFIDENT THEIR TWOWEEK CASE HAD EFFECTIVELY RAISED A REASONABLE DOUBT IN JURORS' MINDS THEY SAID THEY BELIEVE MORE EVIDENCE WAS UNNECESSARY THE JURY COULD ANTICIPATE WHAT THE THREE DEFENDANTS WOULD SAY IF WE PUT THEM ON THE STAND SAID MICHAEL P STONE A LAWYER FOR DEFENDANT LAURENCE POWELL WHO HAD DECIDED ON WEDNESDAY NOT TO TESTIFY WHY EXPOSE THEM TO CROSSEXAMINATION ON NONISSUES AND SUBJECT THEM TO CREDIBILITY ATTACKS MR STONE ASKED OUTSIDE THE COURTROOM LEGAL EXPERTS WATCHING THE CASE GENERALLY AGREED THAT THE DEFENSE LAWYERS HADN'T ANY OTHER WITNESSES AS STRONG AS SGT STACEY KOON WHO WAS THE ONLY ONE OF THE FOUR ACCUSED OFFICERS TO TAKE THE STAND I THINK DEFENSE LAWYERS REALIZED THEY WERE GETTING KILLED BY THEIR OWN WITNESSES AND EVERY DAY THEY ALLOWED THIS TRIAL TO CONTINUE IT LESSENED THE IMPACT OF KOON'S VALUABLE TESTIMONY SAID DANIEL CAPLIS A DENVER LAWYER FOLLOWING THE CASE IN THREE DAYS OF COOL SELFASSURED TESTIMONY SGT KOON ACCEPTED RESPONSIBILITY FOR THE ACTIONS OF THE OFFICERS UNDER HIS CHARGE AND SAID THEY BEHAVED APPROPRIATELY BECAUSE THEY THOUGHT THE SUSPECT HAD TAKEN THE DRUG PCP ON THE FAMOUS AMATEUR VIDEOTAPE OF THE INCIDENT SGT KOON ISN'T SEEN DELIVERING ANY BATON BLOWS HE IS CHARGED WITH INTENTIONALLY ALLOWING OFFICERS UNDER HIS COMMAND TO ADMINISTER AN UNREASONABLE BEATING HIS STATEMENTS FORMED THE CRUX OF THE DEFENSE CASE FOR THE WHITE OFFICERS WHICH IS PREMISED ON THE THEORY THAT THE DEFENDANTS WERE FOLLOWING LOS ANGELES POLICE DEPARTMENT POLICY IN THEIR TREATMENT OF MR KING WHO IS BLACK IN ORDER TO CONVICT THE OFFICERS ON CIVILRIGHTS CHARGES THE GOVERNMENT MUST PROVE THEY NOT ONLY USED EXCESSIVE FORCE WHEN THEY TOOK THE SUSPECT INTO CUSTODY BUT THAT THEY DID SO INTENTIONALLY PROSECUTORS ARGUED IN OPENING STATEMENTS THAT THE OFFICERS DISOBEYED POLICY AND THAT VIOLATION ITSELF DEMONSTRATED WRONGFUL INTENT ANOTHER MAJOR DEFENSE WITNESS SGT CHARLES DUKE A USEOFFORCE EXPERT WITH THE LOS ANGELES DEPARTMENT SAID THE OFFICERS BEHAVED PROPERLY HIS STATEMENTS CONTRASTED WITH A DEPARTMENT USEOFFORCE EXPERT CALLED BY THE PROSECUTION SGT MARK CONTA SGT CONTA WAS PARTICULARLY VEHEMENT IN HIS CRITICISM OF SGT KOON CLAIMING THAT AS THE SENIOR OFFICER HE SHOULD HAVE STOPPED THE BEATING THE DEFENSE CASE WAS HURT BY THE TESTIMONY OF MELANIE SINGER AN OFFICER WITH THE CALIFORNIA HIGHWAY PATROL WHO DELIVERED A WRENCHING ACCOUNT OF THE BEATING OF MR KING SHE CRIED AS SHE TOLD JURORS THAT SHE WOULD ALWAYS REMEMBER MR POWELL STRIKING MR KING SIX TIMES ON THE HEAD AND FACE WITH HIS BATON I WILL NEVER FORGET IT UNTIL THE DAY I DIE SHE TESTIFIED IN CONTRAST WITH THE STATECOURT TRIAL OF THE OFFICERS LAST YEAR THE DEFENSE IN THE FEDERAL CASE PRESENTED A UNITED FRONT YESTERDAY PROSECUTORS ATTEMPTED TO INTRODUCE AS REBUTTAL EVIDENCE A VIDEOTAPE OF LAST YEAR'S TESTIMONY BY OFFICER THEODORE BRISENO WHO BROKE WITH THE OTHERS WHEN HE SAID HE SAW MR POWELL STRIKE MR KING'S HEAD AS HE WAS LYING DOWN A VIOLATION OF POLICE POLICY FEDERAL JUDGE JOHN DAVIES SAID HE INTENDED TO ADMIT PORTIONS OF THE TAPE BUT MR BRISENO'S LAWYER SAID HE PLANNED AN IMMEDIATE APPEAL OF THAT RULING THE ACQUITTALS IN THE STATE COURT TRIAL OF THE POLICE OFFICERS LAST APRIL TRIGGERED DAYS OF CIVIL UNREST IN LOS ANGELES THAT RESULTED IN 53 DEATHS AND AT LEAST 800 MILLION IN PROPERTY DAMAGE THIS YEAR POLITICIANS AND LOCAL COMMUNITY LEADERS HAVE CALLED UPON FEDERAL JUDGE DAVIES TO DELAY RELEASE OF THE VERDICT ONCE THE JURY HAS SIGNALED ITS DECISION TO GIVE LAWENFORCEMENT AUTHORITIES TIME TO POSITION THEMSELVES HE HASN'T SAID WHETHER HE WILL DO SO A BIOLOGICAL MOTHER CAN'T BE FEDERALLY PROSECUTED FOR KIDNAPPING HER OWN CHILDREN EVEN CHILDREN TO WHOM SHE NO LONGER HAS ANY LEGAL CLAIM A FEDERAL APPEALS COURT SAID THE RULING BY A THREEJUDGE PANEL IN RICHMOND VA REVOLVES AROUND THE FEDERAL KIDNAPPING LAW ALSO KNOWN AS THE LINDBERGH ACT THE FEDERAL ACT EXPRESSLY EXEMPTS PARENTS WHO ABDUCT THEIR OWN CHILDREN THE PROBLEM IN THE CASE WAS HOW TO DEFINE PARENT THE APPEALS COURT SAID THE MOTHER A FLORENCE SC WOMAN INDICTED FOR KIDNAPPING HER CHILDREN AT GUNPOINT FROM A FOSTER HOME IS CONSIDERED A PARENT UNDER THE LINDBERGH ACT EVEN THOUGH HER PARENTAL RIGHTS WERE TERMINATED BECAUSE A COURT HAD FOUND EVIDENCE OF CHILD ABUSE AND NEGLECT THE APPEALS COURT FOUND THAT THE LANGUAGE OF THE KIDNAPPING ACT IS CLEARLY INTENDED TO EXEMPT BIOLOGICAL PARENTS FROM PROSECUTION THE RULING DOESN'T AFFECT STATE ABDUCTION LAWS WHICH ALLOW PARENTS TO BE PROSECUTED FOR KIDNAPPING THEIR CHILDREN THE STATE LAWS GENERALLY PROVIDE FOR MUCH LESSER PENALTIES THAN DO THE FEDERAL KIDNAPPING STATUTES IN A DISSENT JUDGE KENNETH K HALL SAID THAT BECAUSE A COURT HAD TERMINATED THE MOTHER'S PARENTAL RIGHTS SHE HAD NO GREATER LEGAL CLAIM ON THE CHILDREN THAN I DID THE FEDERAL GOVERNMENT HAS BEEN RENDERED POWERLESS TO PUNISH ABDUCTIONS OF CHILDREN BY PERSONS WHO HAVE FORFEITED THE RIGHT TO BE CALLED A PARENT JUDGE HALL SAID MORE THAN 350000 ABDUCTIONS BY PARENTS TAKE PLACE ANNUALLY ACCORDING TO ONE JUSTICE DEPARTMENT STUDY NO OTHER FEDERAL APPEALS COURT HAS TACKLED THE ISSUE OF KIDNAPPING BY A BIOLOGICAL PARENT SAID WILLIAM E DAY II AN ASSISTANT US ATTORNEY IN FLORENCE WHO PROSECUTED THE CASE THE INTERESTING QUESTION BECOMES HOW FAR CAN YOU GO' A SEMEN DONOR HE ASKED A RAPIST CAN HE BE PROSECUTED IF HE GOES BACK AND GETS THE CHILD MR DAY SAID HE DIDN'T KNOW WHETHER THE GOVERNMENT WILL SEEK A REHEARING BY THE FULL APPEALS COURT WHICH COVERS MARYLAND VIRGINIA WEST VIRGINIA AND THE CAROLINAS GRACE ANN SHEEK THE MOTHER IN THE SOUTH CAROLINA CASE IS AWAITING STATE TRIAL ON EITHER KIDNAPPING OR PARENTALABDUCTION CHARGES THE RULING DOESN'T AFFECT STATE PROSECUTIONS SHE COULD RECEIVE A 20YEAR PRISON SENTENCE UNDER THE STATE KIDNAPPING ACT BUT A MAXIMUM TWOYEAR SENTENCE UNDER THE PARENTALABDUCTION LAW SAID JACK LAWSON MRS SHEEK'S ATTORNEY MR LAWSON ADDED THAT HIS CLIENT'S CHILDREN WHO ARE IN FOSTER CARE LEFT WITH HER VOLUNTARILY CABLETELEVISION COMPANIES CAN'T COMPEL LANDLORDS TO LET THEM INSTALL CABLE WIRES ON THE LANDLORDS' PROPERTY A FEDERAL APPEALS COURT RULED THE DECISION BY THE FOURTH US CIRCUIT COURT OF APPEALS IN RICHMOND VA AGGRAVATES THE LEGAL HEADACHES OF BIG CABLETV OPERATORS SPARRING WITH SMALLER OPERATORS OVER ACCESS TO LARGE RESIDENTIAL COMPLEXES IN RECENT YEARS MANY OWNERS OF APARTMENTS AND CONDOMINIUM BUILDINGS HAVE VEXED THE CABLE INDUSTRY BY BARRING THEIR DOORS AND EITHER CUTTING DEALS WITH SMALLER OPERATORS OR HANDLING THE INHOUSE TV SYSTEMS THEMSELVES COURT HAVE BEEN DIVIDED ON WHETHER THE LANDLORDS CAN DO SO THE FOURTH CIRCUIT CASE AROSE AFTER MEDIA GENERAL CABLE OF FAIRFAX INC FAIRFAX COUNTY VA SOUGHT TO INSTALL CABLE WIRES AT CONDOMINIUM COMPLEX SEQUOYAH CONDOMINIUMS THE SEQUOYAH CONDOMINIUM COUNCIL OF COOWNERS REFUSED TO ALLOW THE INSTALLATION SAYING IT ALREADY HAD AN EXCLUSIVE CONTRACT WITH THE OPERATOR OF A SATELLITE TELEVISION SYSTEM MEDIA GENERAL A UNIT OF MEDIA GENERAL INC RICHMOND HAD ARGUED THAT THE FEDERAL CABLE FRANCHISING LAW REQUIRES THAT THE SEQUOYAH COUNCIL GIVE MEDIA GENERAL ACCESS TO CONDOMINIUM RESIDENTS BUT THE COURT SAID THE LAW GIVES FRANCHISEES THE RIGHT TO USE ONLY PUBLIC LAND AND NOT THE PRIVATE PROPERTY OF LANDLORDS OR PROPERTY OWNERS' ASSOCIATIONS E FORD STEPHENS A LAWYER FOR MEDIA GENERAL WOULDN'T COMMENT ON WHETHER THE COMPANY WILL APPEAL THE RULING WHICH COVERS VIRGINIA THE CAROLINAS MARYLAND AND WEST VIRGINIA WHEN JUDGING WHETHER A COWORKER'S BEHAVIOR IS SEXUAL HARASSMENT MEN AND WOMEN CAN BE EXPECTED TO REACT DIFFERENTLY A FEDERAL APPEALS COURT SAID THE OPINION BY THE APPEALS COURT IN ST LOUIS JOINS THOSE OF A GROWING NUMBER OF COURTS THAT HAVE HELD THAT WOMEN'S CLAIMS OF SEXUAL HARASSMENT ON THE JOB SHOULD BE JUDGED BY WHETHER THE ALLEGED ACTS WOULD OFFEND THE REASONABLE WOMAN PREVIOUSLY SUCH CLAIMS WERE JUDGED BY A REASONABLE MAN OR REASONABLE PERSON STANDARD THE CASE WAS FILED BY A WOMAN WHO ALLEGED THAT MALE COWORKERS AT MCGREGOR ELECTRONIC INDUSTRIES INC IN MCGREGOR IOWA HAD MADE UNWELCOME SEXUAL ADVANCES AND INNUENDOES TOWARD HER A LOWER COURT HAD HELD THAT THE COWORKERS' BEHAVIOR COULDN'T HAVE BEEN OFFENSIVE TO THE WOMAN BECAUSE SHE HAD POSED NUDE IN EASYRIDERS WHICH THE COURT DESCRIBED AS A LEWD NATIONAL MAGAZINE BUT THE APPEALS COURT REVERSED THAT DECISION SAYING THE COWORKERS' BEHAVIOR WAS UNWELCOMED BY THE PLAINTIFF AND WAS SUCH THAT A HYPOTHETICAL REASONABLE WOMAN WOULD CONSIDER THE CONDUCT SUFFICIENTLY SEVERE OR PERVASIVE TO CREATE AN ABUSIVE WORK ENVIRONMENT THE DECISION IS BINDING ON FEDERAL COURTS IN ARKANSAS IOWA MINNESOTA MISSOURI NEBRASKA AND THE DAKOTAS WHO'S NEWS BARRY J CUTLER FORMERLY DIRECTOR OF THE FEDERAL TRADE COMMISSION'S BUREAU OF CONSUMER PROTECTION JOINED THE WASHINGTON OFFICE OF SAN FRANCISCO LAW FIRM MCCUTCHEN DOYLE BROWN & ENERSEN AS A PARTNER SPECIALIZING IN TRADE REGULATION AIDS EXCLUSION THE AMERICAN CIVIL LIBERTIES UNION AND A SOUTH CAROLINA ORGANIZATION FOR PEOPLE WITH AIDS FILED A LAWSUIT IN FEDERAL COURT AGAINST SOUTH CAROLINA'S INSURANCE RISK POOL THE SUIT ALLEGES THAT THE RISK POOL WHICH INSURES PEOPLE WHO HAVE BEEN TURNED DOWN BY PRIVATE HEALTH INSURERS VIOLATES THE AMERICANS WITH DISABILITIES ACT BY DENYING COVERAGE TO PEOPLE WITH AIDS STATE LAWMAKERS EXEMPTED PEOPLE WITH AIDS WHEN THEY CREATED THE POOL JAMES C GRAY ATTORNEY FOR THE INSURANCE POOL SAID THE PROGRAM IS COMPLYING WITH THE STATE LAW 9304020101 930402 BUSINESS BRIEF ENERGY SERVICE CO FIRM AGREES TO PURCHASE REST OF PENROD HOLDING ENERGY SERVICE CO SAID IN DALLAS THAT IT SIGNED A LETTER OF INTENT TO ACQUIRE THE REMAINDER OF PENROD HOLDING CORP IN A TRANSACTION VALUED AT 204 MILLION THAT WOULD SHARPLY INCREASE ITS OIL RIG FLEET ENERGY SERVICE WHICH ALREADY OWNS 36 OF PENROD WOULD ISSUE ABOUT 102 MILLION COMMON SHARES TO THE HOLDERS OF PENROD A CLOSELY HELD CONTRACT DRILLING COMPANY IN DALLAS IF THE TRANSACTION IS COMPLETED ENERGY SERVICE WOULD HAVE 223 MILLION COMMON SHARES OUTSTANDING PENROD OWNS AND OPERATES 19 DRILLING RIGS AND TWO ANCHOR HANDLING VESSELS THE COMBINATION OF THE TWO COMPANIES WOULD CREATE A FLEET OF 27 OFFSHORE RIGS 19 LAND RIGS AND 40 OFFSHORE SUPPORT VESSELS 9304020100 930402 MORE US COMPANIES TEST EMPLOYEES FOR DRUG USE NEW YORK AN INCREASING NUMBER OF US COMPANIES ARE TESTING EMPLOYEES AND JOB APPLICANTS FOR DRUGS ACCORDING TO A SURVEY A RECORD 85 OF LARGE COMPANIES SURVEYED ARE CONDUCTING WORKPLACE DRUG TESTING SAID THE AMERICAN MANAGEMENT ASSOCIATION A TRAINING ORGANIZATION LAST YEAR'S SURVEY FOUND 74 OF THE COMPANIES POLLED USED SUCH PROGRAMS THE SURVEY OF 630 COMPANIES FOUND THAT PERIODIC OR RANDOM TESTS HAVE BECOME A CENTRAL FEATURE AT ONETHIRD OF THE COMPANIES THE REPORT FOUND THAT THE RATE OF EMPLOYEES AND APPLICANTS WHO TEST POSITIVE FOR DRUG USE FELL 7 IN 1993 TO 25 OF EMPLOYEES AND 43 OF APPLICANTS THE PERCENTAGE OF EMPLOYEES TESTING POSITIVE HAS DECLINED SHARPLY IN RECENT YEARS ALTHOUGH ERIC GREENBERG THE SURVEY DIRECTOR SAID THE DECLINE IN TESTPOSITIVE RATES REFLECTS A WIDER TESTING POOL NOT LESSER DRUG USE THE SURVEY FOUND THE AVERAGE COST IN 1992 OF TESTING AN EMPLOYEE OR APPLICANT FOR DRUG USE WAS 43 9304020099 930402 BUSINESS BRIEF WILLIAMS COS COMPANY WILL RECORD GAIN FROM SALE OF ASSETS TO ENRON WILLIAMS COS TULSA OKLA SAID IT WOULD REPORT A FIRSTQUARTER GAIN OF 25 MILLION OR 53 CENTS A SHARE FROM ITS SALE OF AN INTRASTATE PIPELINE SYSTEM AND OTHER ASSETS TO ENRON CORP THE TWO COMPANIES BOTH NATURALGAS PIPELINE CONCERNS SAID THEY COMPLETED THE 170 MILLION TRANSACTION COVERING WILLIAMS'S LOUISIANA PIPELINE SYSTEM ENRON BASED IN HOUSTON SAID ITS ENRON GAS SERVICES CORP UNIT BOUGHT THE 540MILE PIPELINE THAT SERVES THE INDUSTRIAL FACILITIES ALONG THE MISSISSIPPI RIVER FROM BATON ROUGE TO NEW ORLEANS FOR THE 1992 FIRST QUARTER WILLIAMS REPORTED NET INCOME OF 395 MILLION OR 85 CENTS A SHARE INCLUDING A PRETAX GAIN OF 146 MILLION FROM THE SALE OF LAND REVENUE FOR THE QUARTER WAS 5832 MILLION 9304020098 930402 BUSINESS BRIEF NATIONAIR OPERATIONS ARE SUSPENDED UNTIL INSURANCE IS CURRENT CANADA'S NATIONAL TRANSPORTATION AGENCY ORDERED NATIONAIR A MAJOR CHARTER AIRLINE TO SUSPEND OPERATIONS UNTIL IT BRINGS ITS INSURANCE PAYMENTS UP TO DATE CANADIAN TRANSPORT MINISTER JEAN CORBEIL SAID IF NATIONAIR DOESN'T MEET ITS INSURANCE REQUIREMENTS WITHIN THREE WEEKS ITS OPERATING LICENSE WILL BE CANCELLED NATIONAIR A CLOSELY HELD MONTREALBASED CARRIER HAS BEEN OPERATING UNDER BANKRUPTCY PROTECTION SINCE MARCH 22 SEVERAL TOUR OPERATORS HAVE STOPPED BOOKING SEATS WITH THE COMPANY EARLIER THIS WEEK THE MEXICAN GOVERNMENT GROUNDED A NATIONAIR JET IN CANCUN BECAUSE OF UNPAID FEES STRANDING PASSENGERS FOR SEVERAL DAYS A NATIONAIR SPOKESWOMAN SAID THE PASSENGERS RETURNED TO MONTREAL WEDNESDAY 9304020097 930402 BUSINESS BRIEF INSILCO CORP FIRM EXITS FROM CHAPTER 11 AND CHIEF EXECUTIVE RESIGNS INSILCO CORP MIDLAND TEXAS SAID IT IS EMERGING FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS THE HOLDING COMPANY WHICH HAS INTERESTS IN THE AUTOMOTIVE ELECTRONICS DEFENSE AND CONSUMER PRODUCTS INDUSTRIES ALSO SAID JOEL L REED RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER BUT WILL CONTINUE AS CHIEF OPERATING OFFICER UNTIL A NEW CHIEF EXECUTIVE IS NAMED HE THEN PLANS TO LEAVE THE COMPANY AN INSILCO SPOKESMAN SAID UNDER THE REORGANIZATION PLAN THE PRINCIPAL HOLDER OF THE COMPANY'S SUBORDINATED DEBT WATER STREET CORPORATE RECOVERY FUND I LP AN INVESTMENT PARTNERSHIP OF WHICH GOLDMAN SACHS & CO IS THE GENERAL PARTNER WILL OWN ABOUT 51 OF THE COMPANY'S NEWLY ISSUED COMMON STOCK 9304020096 930402 TECHNOLOGY & MEDICINE INTEL FACTORY TO GROW AT COST OF 1 BILLION BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP SAID IT WILL SPEND 1 BILLION TO EXPAND A SEMICONDUCTOR FACTORY IN NEW MEXICO IN A BOLD MOVE TO BUILD THE PLANT CAPACITY THE COMPANY WILL NEED TO REMAIN THE WORLD'S NO 1 CHIP MAKER THE ANNOUNCEMENT ENDS A YEAR OF SPECULATION OVER WHERE INTEL WOULD BASE ITS NEXT BIG PLANT WHERE IT PLANS TO BUILD NEW GENERATIONS OF MICROPROCESSORS AND THE SANTA CLARA CALIF CHIP MAKER SAID IT WILL ANNOUNCE BY YEAR END PLANS FOR YET ANOTHER FACTORY OF A SIMILAR HUGE SCALE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY INTEL FELL 350 TO 11150 THE NEW MEXICO EXPANSION WHICH INTEL SAYS IS THE CHIP INDUSTRY'S LARGEST PLANT INVESTMENT TO DATE IS PART OF A STRATEGY OF CAPITAL SPENDING INTEL EMBARKED ON IN 1990 AS A WAY OF KEEPING ITS LARGE LEAD IN THE MARKET FOR THE CHIPS THAT ARE THE BRAINS OF PERSONAL COMPUTERS LAST YEAR INTEL INVESTED 12 BILLION MORE THAN ANY OTHER CHIP MAKER AND PLANS 16 BILLION IN CAPITAL SPENDING THIS YEAR INTEL IS LIKELY TO MAINTAIN THAT PACE OF INVESTMENT SAID GORDON MOORE INTEL'S CHAIRMAN WE SEE OURSELVES TRYING TO PRODUCE THE LION'S SHARE OF PROCESSING POWER THAT GOES INTO DESKTOP MACHINES HE SAID IF WE'RE SUCCESSFUL IN CONTINUING TO DRIVE PERSONAL COMPUTING WE'RE GOING TO NEED MORE CAPACITY I DON'T SEE THE RATE OF COMPARABLE SPENDING FALLING OFF INTEL SAID IT WILL EXPAND AN EXISTING CHIP PLANT IN RIO RANCHO NM BY MORE THAN 13 MILLION SQUARE FEET AND CREATE 1000 JOBS THE PLANT WILL PRODUCE THE PENTIUM CHIP INTEL'S NEWEST MICROPROCESSOR AND WILL EVENTUALLY MAKE A YETFURTHER GENERATION CHIP CODENAMED P6 WHICH MANY ANALYSTS EXPECT OUT AS EARLY AS NEXT YEAR INTEL ALREADY HAS 2400 EMPLOYEES IN NEW MEXICO ITS LARGEST MANUFACTURING SITE PRODUCTION AT THE REVAMPED PLANT IS SCHEDULED TO START IN 1995 THE CHIP MAKER WAS WOOED BY SEVERAL WESTERN STATES FOR THE PROJECT MR MOORE SAID NEW MEXICO WAS CHOSEN BECAUSE THE COMPANY ALREADY HAS A LARGE SITE AND BECAUSE IT RECEIVED A FAVORABLE PACKAGE OF INCENTIVES ADDING THAT THE STATE IS A DESIRABLE AND AFFORDABLE PLACE TO LIVE NEW MEXICO CAME UP WITH A 1 BILLION INDUSTRIAL REVENUE BOND TO GIVE THE COMPANY LOWINTEREST FINANCING INPLANT TRAINING FUNDS INVESTMENT CREDITS AND TAX BREAKS MR MOORE ALSO SAID THAT ANOTHER MAJOR FACILITY IN ADDITION TO THE EXPANDED NEW MEXICO PLANT IS NEEDED FOR THE CHIP MAKER TO MAINTAIN ITS DOMINANCE OF THE MARKET THIS IS NOT GOING TO BE THE END HE SAID OF THE NEW MEXICO SITE THIS CERTAINLY ISN'T GOING TO SATISFY OUR CAPACITY NEEDS MR MOORE SAID INTEL HASN'T DECIDED WHERE TO LOCATE THE UNANNOUNCED ADDITIONAL PLANT BUT ADDED THAT INTEL PROBABLY WON'T BUILD IT IN NEW MEXICO AND THAT CALIFORNIA WHERE THE COSTS OF LIVING AND DOING BUSINESS ARE EXTREMELY HIGH HAD A STRONG EXPENSE DISADVANTAGE 9304020095 930402 CHAMBERS FACES CRIMINAL INQUIRY OVER PROFIT DATA BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE US ATTORNEY'S OFFICE IN BROOKLYN NY IS CONDUCTING A CRIMINAL INVESTIGATION INTO ALLEGATIONS THAT CHAMBERS DEVELOPMENT CO ISSUED FRADULENT FINANCIAL STATEMENTS THREE CURRENT EXCUTIVES AS WELL THE COMPANY ARE SUBJECTS OF THE INVESTIGATION ACCORDING TO INDIVIDUALS FAMILIAR WITH THE CASE THE COMPANY ACKNOWLEDGED IN DECEMBER THAT IT HAD BEEN SUBPOENAED IN THE CASE THE THREE OFFICIALS ARE JOHN RANGOS SR CHAMBERS'S FOUNDER AND CHAIRMAN AND HIS TWO SONS JOHN RANGOS JR EXECUTIVE VICE PRESIDENT ADMINISTRATION AND ALEXANDER RANGOS EXECUTIVE VICE PRESIDENT OPERATIONS AT LEAST ONE OTHER FORMER COMPANY EXECUTIVE WILLIAM NELSON WHO WAS CHIEF FINANCIAL OFFICER IS SAID TO BE A SUBJECT OF THE INQUIRY AN OUTSIDE AUDIT DISCLOSED LAST FALL THAT IN EVERY YEAR SINCE CHAMBERS WENT PUBLIC IN 1985 THE COMPANY REPORTED STRONG PROFITS BUT ACTUALLY HAD LOSSES THAT LED CHAMBERS ONCE HAILED ON WALL STREET AS A WASTEMANAGEMENT STAR TO RESTATE ITS RESULTS ALL THE WAY BACK TO ITS INCEPTION REDUCING ITS REPORTED PROFITS BY 362 MILLION AFTER TAXES THE SUBPOENA SERVED IN DECEMBER ON THE COMPANY SOUGHT FINANCIAL DOCUMENTS AS WELL AS MATERIAL ON HOW THE STATEMENTS WERE PREPARED THE INVESTIGATION REPORTEDLY IS LOOKING INTO THE POSSIBILITY THAT CHAMBERS'S TOP OFFICERS CRIMINALLY MISLED INVESTORS ABOUT ITS FINANCIAL PROSPECTS IN ORDER TO BOLSTER THE COMPANY'S STOCK AS SUBJECTS OF AN INVESTIGATION THE FOUR MEN AND THE CORPORATION ARE STILL A LONG WAY FROM BEING CHARGED WITH CRIMINAL WRONGDOING AT SOME POINT THE US ATTORNEY COULD IDENTIFY THEM AS TARGETS INDICTATING THAT AN INDICTMENT IS NEAR THE GRANDJURY INVESTIGATION WAS DISCLOSED IN THE COMPANY'S LATEST 10K FILING WITH THE SECURITIES AND EXCHANGE COMMISSION ON DEC 30 STANLEY ARKIN A LEADING CRIMINAL DEFENSE ATTORNEY IN NEW YORK WHO RESPONDED TO INQUIRIES ABOUT THE INVESTIGATION ON BEHALF OF THE RANGOSES AND CHAMBERS SAID THE ACCOUNTING PROBLEMS WERE NOT THE RESULT OF CRIMINAL WRONGDOING HE ADDED THE ACCOUNTING ISSUE HERE IS A VERY INTERESTING ONE BUT ONE WHICH WE BELIEVE IS HARDLY THE SUBSTANCE OF A GRANDJURY INQUIRY WHILE PROFESSIONALS CAN QUARREL ABOUT THE ACCOUNTING ISSUES NOBODY CAN SAY THAT ANY LAY PERSON INCLUDING THE PRINCIPALS AND THE COMPANY ITSELF EVER HAD ANY NOTION THAT THEY WERE BEHAVING OTHER THAN IN A LAWFUL MANNER WE HOPE THE INQUIRY RESOLVES ITSELF WITH THE UNDERSTANDING THAT WHAT WENT ON WAS ALMOST IF YOU WILL AN ESOTERIC QUESTION FOR ACCOUNTANTS MR NELSON WHO LEFT CHAMBERS ABOUT NINE MONTHS AGO AND IS NOW PRESIDENT OF ADDINGTON ENVIRONMENTAL INC A UNIT OF ADDINGTON RESOURCES INC ASHLAND KY SAID HE WAS UNAWARE OF THE INQUIRY NOBODY HAS CONTACTED ME HE SAID CHAMBERS HAS BLAMED THE ACCOUNTING ERRORS ON WORK DONE BY ITS FORMER OUTSIDE AUDITOR GRANT THORNTON THE AUDIT REPORT DISCLOSING THE ACCOUNTING PROBLEMS WAS PREPARED BY DELOITTE & TOUCHE IT SAID THE COMPANY COVERED ITS LOSSES BY GROSSLY UNDERSTATING EXPENSES AND IN THE PROCESS VIOLATING GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AN SEC INVESTIGATION INTO THE COMPANY'S ACCOUNTING POLICIES BEGUN LAST YEAR IS CONTINUING THE COMPANY SAID 9304020094 930402 BUSINESS BRIEF HJ HEINZ CO AUSTRALIAN UNIT TO CUT STAFF TO IMPROVE ITS PRODUCTIVITY HJ HEINZ CO'S AUSTRALIAN UNIT SAID IT WILL CUT ITS STAFF BY 130 TO 800 AT ITS FOOD MANUFACTURING OPERATIONS IN VICTORIA STATE FOLLOWING A STUDY SHOWING IT MUST IMPROVE PRODUCTIVITY TERRY WARD HEINZ AUSTRALIA MANAGING DIRECTOR SAID A STUDY OF HEINZ AFFILIATES WORLDWIDE CONCLUDED THE SYDNEY SUBSIDIARY LACKED INTERNATIONAL COMPETITIVENESS HEINZ AUSTRALIA WILL CUT 16 OF ITS ADMINISTRATIVE SUPERVISORY AND PRODUCTION STAFF AND SPEND 13 MILLION AUSTRALIAN DOLLARS US92 MILLION TO UPGRADE ITS DANDENONG PLANT 9304020093 930402 LEISURE & ARTS BOOKSHELF EDUCATING BILL A HISTORY LESSON BY HOLMAN W JENKINS JR THERE WAS A TIME WHEN ECONOMISTS WERE CONVINCED THEY COULD PRODUCE FULL EMPLOYMENT AND OPTIMAL HAPPINESS JUST BY PULLING A MACROECONOMIC LEVER HERE AND TWISTING A DIAL THERE THIS EXCURSION INTO GRANDIOSITY DID NOT END HAPPILY YET ECONOMISTS ARE NOT ALTOGETHER USELESS THEIR INSIGHTS INTO HOW HUMANS BEHAVE WHEN FACED WITH CHANGED INCENTIVES REMAIN REMARKABLY RELIABLE DONALD MCCLOSKEY A PROFESSOR AT VANDERBILT AND THE EDITOR OF SECOND THOUGHTS MYTHS AND MORALS OF US ECONOMIC HISTORY OXFORD UNIVERSITY PRESS 208 PAGES 2495 STEERS THE PROFESSION BACK TO THIS TRADITION OF REFINED COMMON SENSE IN THIS COLLECTION ASSEMBLED FOR THE MANHATTAN INSTITUTE ECONOMISTS BECOME STORYTELLERS WHAT DO THEIR STORIES TAKEN FROM VARIOUS EPISODES IN OUR NATIONAL EXPERIENCE HAVE TO SAY TO THE CLINTONRODHAM ADMINISTRATION FOR STARTERS THEY MIGHT SUGGEST THE UNWISDOM OF APPLYING PRICE CONTROLS TO HEALTH CARE SOME NOSTALGIAADDLED MINDS STILL LOOK BACK ON PRICE CONTROLS DURING WORLD WAR II AS A TRIUMPH BUT THE CONTROLS DIDN'T ELIMINATE INFLATION JUST DISGUISED IT AS HUGH ROCKOFF OF RUTGERS MAKES CLEAR BUTCHERS ADDED MORE FAT TO THE HAMBURGER CANDY MAKERS REDUCED THE SIZE OF THEIR BARS AND USED INFERIOR INGREDIENTS CLOTHING MANUFACTURERS USED COARSER YARNS LANDLORDS REFUSED TO MAKE REPAIRS AND SO ON ARE THESE THE INCENTIVES WE WANT WORKING ON OUR DOCTORS AND WHO SAYS GREATER ACCESS TO HEALTH INSURANCE NECESSARILY EQUALS BETTER HEALTH IN THE EARLY 1900S ACCIDENT RATES IN COAL MINES ACTUALLY ROSE AFTER WORKERS' COMPENSATION INSURANCE BECAME MANDATORY IT SEEMS THAT MINERS TOOK LESS CARE TO POLICE THEMSELVES ONCE THEY KNEW THEY OR THEIR SURVIVORS WOULD HAVE SOMETHING TO FALL BACK ON BILL CLINTON WHO OFTEN RUBS ELBOWS WITH THE SILICON VALLEY CROWD RECENTLY EXULTED WE'RE WIRED FOR REAL TIME WHAT DO OUR ECONOMISTS SAY ABOUT THE ROLE OF GOVERNMENT IN ADVANCING THE TECHNOLOGY CURVE LIKE SOME OF HIS PRESENTDAY INCARNATIONS ROBERT FULTON WAS KEEN ON WINNING GOVERNMENTAL FAVORS FOR HIS HIGHTECH BRAINCHILD THE STEAMBOAT ESPECIALLY THE MONOPOLY RIGHT TO OPERATE ON AMERICA'S WATERWAYS WILLIAM THORNTON A PATENT OFFICIAL WHO PROBABLY WOULDN'T HAVE FELT AT HOME IN THE CLINTON ADMINISTRATION WASN'T BUYING BECAUSE OF HIS OPPOSITION THE OHIO AND MISSISSIPPI RIVERS REMAINED SAFE FOR CAPITALISM AND WITHIN TWO YEARS THE NUMBER OF PADDLEWHEELERS HAD TRIPLED AND SHIPPING RATES SANK LIKE A STONE IN TWO CASES SEPARATED BY MORE THAN A CENTURY GOVERNMENT CAN LEGITIMATELY CLAIM PATERNITY FOR TECHNOLOGICAL REVOLUTIONS AFTER THE WAR OF 1812 THE ARMY'S ORDNANCE DEPARTMENT SHOOED PRIVATE GUNSMITHS IN THE DIRECTION OF MAKING FIREARMS WITH INTERCHANGEABLE PARTS A PRACTICE THAT TRICKLED DOWN INTO THE MAKING OF SEWING MACHINES AND FARM EQUIPMENT AND IN THE 1940S AND 1950S VARIOUS FEDERAL NUMBERCRUNCHING MILLS DROVE THE DEVELOPMENT OF THE DIGITAL COMPUTER BOTH TIMES THOUGH GOVERNMENT HELPED BECAUSE IT NEEDED TO BUY THE STUFF NOT BECAUSE SOME FARSEEING CONGRESSMAN HAD IDENTIFIED AN INDUSTRY OF THE FUTURE IN HIS DISTRICT YET IT'S THE LATTER PORKDISPENSING MODEL THAT MR CLINTON TOOK TO SILICON VALLEY RECENTLY NOT EVERYTHING IN THIS BOOK WILL COMFORT CONSERVATIVES FANS OF THE GOLD STANDARD WILL BE SORRY TO READ THAT IN OUR DAY MASS POLITICS AND MASS MEDIA HAVE HANDED TOO MUCH POWER TO THE INFLATION LOBBY FOR THE YELLOW STUFF EVER TO MAKE A COMEBACK AND THE LESSON OF THE 1890S SEEMS TO BE THAT PROLONGED DEFICIT SPENDING ONLY BEGETS CONSTITUENCIES FOR NEW KINDS OF TAXES THEN IT WAS NORTHEASTERN INDUSTRY AND THE VETERANS LOBBY WHO FATHERED THE INCOME TAX NOW IT'S EVERYBODY FROM THE FARMERS TO THE FORTUNE 500 WHO WANT THE VAT SOME ECONOMIC MYTHS ARE MORE PERNICIOUS THAN OTHERS AS BRITAIN'S EDWIN CANNAN WROTE A CENTURY AGO THE TRUE OGRE OF THEM ALL LURKS IN THE MISLEADING MILITARY METAPHORS WHICH HAVE BEEN APPLIED BY SOCIOLOGISTS TO THE PEACEFUL EXCHANGE OF COMMODITIES IN THIS VEIN MR MCCLOSKEY TAKES UP THE CUDGELS AGAINST DECLINISTS OF THE PAUL KENNEDY SCHOOL TRUE HE SAYS THE BRITISH DUTCH AND SPANIARDS ONCE HAD EMPIRES AND NOW THEY DON'T BUT STILL THEIR PEOPLE GROW RICHER AND RICHER EVEN AS OTHERS CATCH UP TREATING THIS HAPPY OUTCOME OF GROWTH AS A TRAGEDY IS TASTELESS AT BEST IN A WORLD OF STAGNANT ARGENTINAS AND INDIAS WHATEVER THE FATE OF THE UNITED STATES IT ISN'T FORETOLD BY THE NUMBER OF JAPANESE CARS COMING ASHORE AS HISTORIAN MARK THOMAS POINTS OUT THE US RAN NEARCONTINUAL TRADE DEFICITS FOR ITS FIRST 100 YEARS AND NOBODY THOUGHT WE HAD A COMPETITIVENESS PROBLEM THEN OF COURSE SUCH SENSIBLE OBSERVATIONS AREN'T LIKELY TO MAKE MUCH HEADWAY AGAINST THE DIN OF ANCHORMEN THE MEDIA HAVE CONDITIONED THE AMERICAN PEOPLE TO SEE THE TRADE FIGURES AS THEIR NATIONAL SHAME AND HENCE OUR POLITICIANS WASTE A RIDICULOUS AMOUNT OF TIME TRYING TO FIX THE TRADE DEFICIT WHEN THEY MIGHT BE IMPROVING OUR SCHOOLS OR MAKING OUR STREETS SAFER MR JENKINS IS A JOURNAL EDITORIAL WRITER 9304020092 930402 BIG BANKS PUT MORE FUNDS INTO COMMERCIAL AREAS WASHINGTON BIG BANKS PUT A SUBSTANTIALLY HIGHER PROPORTION OF THEIR FUNDS INTO COMMERCIAL AND INDUSTRIAL LOANS AND THEY INVEST SIGNIFICANTLY LESS IN TREASURY SECURITIES THAN SMALLER BANKS ACCORDING TO A REPORT BY A HOUSE BANKING SUBCOMMITTEE THE REPORT ALSO CONFIRMS THAT US BANKS OVERALL HAVE INVESTED MORE MONEY IN TREASURY SECURITIES THAN IN COMMERCIAL AND INDUSTRIAL LOANS TO BUSINESSES FOR THE LAST COUPLE OF YEARS THE HOUSE SUBCOMMITTEE ON ECONOMIC GROWTH AND CREDIT FORMATION COLLECTED THE DATA FROM FEDERAL BANK REGULATORS IN PREPARATION FOR A HEARING TODAY AS OF LAST SEPT 30 THE REGULATORS SAID THE 9500 BANKS WITH ASSETS OF LESS THAN 100 MILLION HAD 548 OF THEIR ASSETS IN LOANS OF ALL SORTS SOME 78 OF THEIR ASSETS WERE IN COMMERCIAL AND INDUSTRIAL LOANS IN CONTRAST THE 56 BANKS WITH ASSETS OVER 10 BILLION HAD 608 OF THEIR ASSETS IN LOANS AND 178 IN COMMERCIAL AND INDUSTRIAL LOANS THE 3900 BANKS WITH ASSETS BETWEEN 100 MILLION AND 1 BILLION HAD 60 OF THEIR ASSETS IN LOANS AND 79 IN COMMERCIAL AND INDUSTRIAL LOANS AND THE 512 BANKS WITH ASSETS BETWEEN 1 BILLION AND 10 BILLION HAD 608 OF THEIR ASSETS IN LOANS AND 178 IN COMMERCIAL AND INDUSTRIAL LOANS 9304020091 930402 ENVIRONMENTALISTS LOADED FOR BEAR AT TIMBER SUMMIT BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL PORTLAND ORE PRESIDENT CLINTON'S HONEYMOON WITH INFLUENTIAL ENVIRONMENTALISTS IS WANING CASTING FURTHER DOUBT OVER HOW MUCH PROGRESS TOWARD COMPROMISE IS LIKELY FROM TODAY'S MUCHANTICIPATED TIMBER SUMMIT NATIONAL ENVIRONMENTAL LEADERS HERE FOR THE SUMMIT CALLED BY PRESIDENT CLINTON TO FIND SOLUTIONS TO THE COUNTRY'S BITTER CONFLICT OVER FOREST PROTECTION AND LOGGING SAVAGED THE PRESIDENT YESTERDAY FOR HIS RECENT RETREAT FROM A VOW TO CURTAIL SUBSIDIES FOR FEDERAL TIMBER GRAZING AND MINING RIGHTS CUTTING THOSE SUBSIDIES IS SEEN BY ENVIRONMENTALISTS AS CRUCIAL FOR THE LONGTERM PROTECTION OF FEDERAL FORESTS AND OTHER PUBLIC LANDS FACING RESISTANCE FROM WESTERN SENATORS HOWEVER PRESIDENT CLINTON EARLIER THIS WEEK BACKED AWAY FROM A PROPOSAL TO USE THE BUDGET PROCESS TO ATTACK THE SUBSIDIES CRITICISM WAS VITRIOLIC EVEN BY THE OFTENINFLAMED STANDARDS OF ENVIRONMENTAL DEBATES IT'S A TOTAL FAILURE OF WILL IT'S DISGUSTING SAID JAY HAIR HEAD OF THE NATIONAL WILDLIFE FEDERATION HE SAID THE RETREAT ON SUBSIDIES RAISES DOUBTS ABOUT MR CLINTON'S COMMITMENT TO SOLVING POLITICALLY CONTENTIOUS ENVIRONMENTAL PROBLEMS SUCH AS THE FOREST BATTLES THE SUMMIT IS SUPPOSED TO ADDRESS PERHAPS THIS SUMMIT IS JUST A GATHERING OF APRIL FOOLS FOR MR CLINTON'S THREERING CIRCUS MR HAIR SAID ARE WE GOING TO GO AWAY FROM THIS LOOKING LIKE A BUNCH OF CLOWNS ADDED KARIN SHELDON PRESIDENT OF THE WILDERNESS SOCIETY WHEN A FEW CONGRESSMEN PLAY CHICKEN IS MR CLINTON ALWAYS GOING TO BE THE FIRST TO BLINK ANOTHER LEADING ENVIRONMENTALIST AUDUBON SOCIETY PRESIDENT PETER AA BERLE BLASTED THE DECISION AS A TOTAL SCREWUP AND A TERRIBLE TACTICAL MISTAKE IN WASHINGTON INTERIOR SECRETARY BRUCE BABBITT DEFENDED THE WHITE HOUSE ACTIONS IN A CONVERSATION WITH REPORTERS HE PREDICTED THE ADMINISTRATION WOULD ACHIEVE AN EVEN GREATER OVERHAUL OF NATURALRESOURCE POLICY BY PURSUING ITS GOALS THROUGH LEGISLATIVE AND ADMINISTRATIVE MEANS OUTSIDE THE BUDGET PROCESS HE NOTED FOR EXAMPLE THAT THE BUDGET PROPOSAL CALLED FOR THE IMPOSITION OF A ROYALTY ON MINING REVENUES BUT DIDN'T ADDRESS THE RECLAMATION AND OTHER PROVISIONS THE ADMINISTRATION SUPPORTS ON GRAZING POLICY MR BABBITT SAID HE WOULD BE ABLE TO MAKE ALL THE CHANGES HE SEEKS WITHOUT LEGISLATION ALTHOUGH SOME LEADING LAWMAKERS DISAGREE GRAZING IS A SLAMDUNK HE SAID NEVERTHELESS THE ANGER AMONG TOPFLIGHT MAINSTREAM ENVIRONMENTAL GROUPS MARKS A SHARP BREAK FROM THE EFFUSIVE SUPPORT THEY'VE GIVEN MR CLINTON UNTIL NOW IT COMPLICATES THE SEARCH FOR FOREST PEACE BECAUSE THE GROUPS ARE POLITICALLY INFLUENTIAL AND ARE ADEPT IN COURT IF THEY DON'T SIGN ON TO THE ADMINISTRATION'S PROPOSALS FOR LOGGING REFORMS THERE'S NO HOPE OF ENDING THE COURTROOM WARFARE THAT HAS PARALYZED FOREST POLICY FOR SEVERAL YEARS UNTIL YESTERDAY MANY OF THESE SAME GROUPS HAD BEEN TALKING OPTIMISTICALLY ABOUT THE SUMMIT AND THEIR WILLINGNESS TO COOPERATE IN SOME SORT OF COMPROMISE ON THE ISSUE WE FEEL LIKE PART OF A LOVE AFFAIR THAT'S ENDED BADLY MR HAIR SAID 9304020090 930402 PRODUCT FAKES IN CHINA WORRY FOREIGN FIRMS BRANDNAME COUNTERFEITING GROWS WITH INTEREST IN LUXURY MERCHANDISE BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG WHILE COUNTERFEITING OF BRANDNAME GOODS HAS BEEN A PROBLEM IN CHINA FOR ALMOST AS LONG AS THE LEGITIMATE GOODS HAVE BEEN SOLD THERE CORPORATE INVESTIGATORS AND FOREIGN COMPANIES SAY IT HAS WORSENED OVER THE PAST YEAR AND MANY COMPANIES ARE GETTING WORRIED AS PARTICIPATION BY HONG KONG AND TAIWANESE COUNTERFEITERS COMBINED WITH CHINA'S GROWING DEMAND FOR LUXURY ITEMS MEAN PIRACY IN CHINA IS GETTING BIGGER AND BETTER ACCORDING TO US CUSTOMS STATISTICS CHINA RANKED SECOND AFTER TAIWAN IN TERMS OF SEIZURES OF IMPORTS VIOLATING US INTELLECTUALPROPERTY RIGHTS IN THE FIRST HALF OF LAST YEAR DETECTIVE AGENCY PINKERTON ASIA LTD SAYS CHINA COULD NOW WELL BE NO 1 EVERYONE IS BEING COUNTERFEITED IN CHINA SAYS GARETH DAVIES MANAGER IN CHARGE OF PINKERTON'S CHINA ANTICOUNTERFEITING OPERATION WHAT WE'RE DOING IN CHINA IS MUCH BIGGER THAN ANYTHING ELSE IN ASIA AND IT'S ONLY THE TIP OF THE ICEBERG WHILE THERE ARE NO STATISTICS JOSEPH SIMONE AN ATTORNEY AT JOHNSON STOKES & MASTER AND LEADER OF A US TRADEMARK ASSOCIATION TASK FORCE ON CHINA'S TRADEMARK LAW ESTIMATES THAT CONSERVATIVELY THE VALUE OF FOREIGN TRADEMARK FAKES IS IN THE HUNDREDS OF MILLIONS OF US DOLLARS EACH YEAR IN CHINA A STROLL DOWN A CHINESE CITY STREET SHOWS JUST HOW PREVALENT COUNTERFEITING IS IN THE SHENZHEN SPECIAL ECONOMIC ZONE JUST ACROSS THE BORDER FROM HONG KONG SMALL DEPARTMENT STORES AND VENDORS ON STREET AFTER STREET DISPLAY DRESS SHIRTS CARRYING YVES SAINT LAURENT PIERRE CARDIN AND HONG KONG'S GOLDLION INSIGNIAS THEY APPEAR TO BE REAL BARGAINS AT 25 YUAN TO 45 YUAN US437 TO US787 OR ARE THEY A BRAND NAME IS A BRAND NAME SHRUGS A VENDOR WHEN ASKED IF THE SHIRTS ARE THE REAL THING WHICH THEY CLEARLY AREN'T THEY'RE MADE IN CHINA IN THE SMALL BOOM TOWN OF SHISHI IN FUJIAN PROVINCE ELECTRONICS STORES LINE ONE STREET FAMED FOR SELLING CHEAP TELEVISIONS RADIOS AND WATCHES SMUGGLED IN FROM JAPAN AND TAIWAN THESE DAYS THE SALES CLERKS STILL PLAY ON THE CITY'S ILLICIT REPUTATION CRYING OUT TO PASSERSBY LOUD PROMISES OF SMUGGLED GOODS VERY CHEAP BUT IN FACT MANY OF THE SONYS AND PANASONICS ON DISPLAY ARE PRODUCED IN CHINA AND THEN PASSED OFF AS SMUGGLED ITEMS MR DAVIES SAYS INCREASINGLY FOREIGN COMPANIES ARE VOICING CONCERN ABOUT SUCH PRACTICES FOR SOME IT IS BECAUSE THEY ARE JUST ENTERING THE CHINA MARKET OR STARTING TO TURN PROFITS AND ARE REALIZING THE POTENTIAL LOSSES INVOLVED IN COUNTERFEITING PEOPLE SEEMED TO WAKE UP LAST YEAR TO THE FACT THAT IT'S A GREAT CONSUMER MARKET SO CHINA WILL COME TO THE FORE AS A TROUBLE SPOT IN ASIA MR SIMONE SAYS TAKE YVES SAINT LAURENT THE FRENCH FASHION HOUSE ONLY SELLS CIGARETTES IN CHINA FOR NOW BUT FAKES OF ITS LEATHER GOODS BELTS SUITS AND SHIRTS ALREADY HAVE TURNED UP IN CHINA'S MAJOR CITIES WITH SOME COMPANIES USING SLIGHTLY ALTERED VERSIONS OF ITS YSL LOGO ACCORDING TO SIU KIT CHAN AREA MANAGER FOR YVES SAINT LAURENT HONG KONG LTD ONE COMPANY MANFACTURED TSHIRTS WITH A SIMILAR INSIGNIA HE SAYS MR CHAN SAYS THE COMPANY HAS BEEN FORCED TO REGISTER ITS TRADEMARK IN CHINA IN ANTICIPATION OF THE DAY IT WILL WANT TO SELL ITS OTHER PRODUCTS IN THE COUNTRY WE'RE JUST DOING IT TO PROTECT OURSELVES HE SAYS TIGER ENTERPRISES LTD WHICH DISTRIBUTES FOR HONG KONG'S GIORDANO LTD IN CHINA HAS FACED SIMILAR PROBLEMS WITH LOGO COPYCATS IN CANTON TIGER'S PRESIDENT AND CHIEF EXECUTIVE PAUL KUA SPOTTED POLO SHIRTS SPORTING FROGS ONE OF THE TWO COMPANIES' REGISTERED TRADEMARKS AT A SMALL SHOP AND A MAJOR DEPARTMENT STORE INSTEAD OF BEING CALLED GIORDANO HOWEVER THE SHIRTS CARRIED A FROG BRAND MR KUA SAYS HE EXPECTS COUNTERFEITING TO BECOME A BIGGER PROBLEM FOR THE COMPANY AS IT EXPANDS IN CHINA THE COMPANY HAS EMPLOYED LAWYERS TO TAKE ACTION AGAINST COUNTERFEITERS BUT OTHERWISE HASN'T DONE MUCH YET UNTIL THE LEGAL THING IS TIGHTENED UP THERE'S NO STOPPING THEM COUNTERFEITERS WHEN OUR PRODUCTS BECOME MORE WIDESPREAD WE CAN EDUCATE CONSUMERS HE SAYS WHAT IS ESPECIALLY WORRISOME TO FOREIGN COMPANIES IS THE ARRIVAL OF TAIWANESE AND HONG KONG COUNTERFEITERS ON THE SCENE LIKE OTHER MANUFACTURERS MOVING TO CHINA THEY ARE LURED BY ITS CHEAP LAND AND LABOR COSTS AND AS TAIWANESE AND HONG KONG OFFICIALS HAVE CRACKED DOWN AT HOME CHINA'S RELATIVELY LAX REGULATORY ATMOSPHERE PROVIDES AN ADDED ATTRACTION ONE RESULT OF PARTICIPATION BY LARGER OVERSEAS PLAYERS IS THAT THE QUALITY OF FAKE PRODUCTS IS SIMILAR TO THE REAL ONES INCLUDING THE INSIDE AND OUTSIDE PACKAGING THE MATERIAL THE DESIGN SAYS THE GOLDLION SPOKESWOMAN A SMALL FACTORY COULDN'T AFFORD TO DO IT TAIWANESE AND HONG KONG COMPANIES ALSO OFTEN BRING WITH THEM US AND EUROPEAN DISTRIBUTION NETWORKS THAT CHINESE FACTORIES DON'T HAVE BUT EVEN AS COUNTERFEIT PRODUCTS MADE IN CHINA ARE TURNING UP ALL AROUND THE WORLD MANY APPEAR TO BE MADE FOR SALE IN THE CHINA MARKET THAT'S WHY GUANGDONG BUSINESSMAN SUN CHOUYIN SHOPS IN BIG STORES SUCH AS THE NANFANG DEPARTMENT STORE IN CANTON I FEEL MORE CONFIDENT SHOPPING HERE SAYS MR SUN WHO SPORTS AN EXPENSIVE SHIRT TWO GOLD RINGS AND ROTTING TEETH I ONLY BUY BRAND NAMES BECAUSE THE QUALITY'S BETTER HE ADDS PULLING OUT A WAD OF 50YUAN NOTES TO PAY FOR HIS GOLDLION WHITE DRESS SHIRTS BUT OTHERS WHO AREN'T AS WEALTHY AS MR SUN OFTEN PREFER TO BUY THE CHEAPER COUNTERFEIT VERSION PEOPLE WHO WEAR FAKE SHOES OF COURSE WILL SAY THEY'RE NO GOOD BUT A LOT OF CONSUMERS KNOW THAT THEY'RE FAKE WHEN THEY BUY THEM THEY'RE CHEAP AND THEY FIT SAYS HERMAN XU PRODUCTLINE MANAGER FOR NIKE INC'S NIKE CHINA IN TWO CASES INVOLVING COUNTERFEITS IMPORTED FROM SOUTH KOREA NIKE WAS ABLE TO WORK WITH CHINA'S ADMINISTRATION FOR INDUSTRY AND COMMERCE TO TRACK DOWN THE COMPANIES AND SEIZE THEIR STOCK BUT IT HASN'T HAD MUCH SUCCESS SO FAR WITH CHINESE FACTORIES THAT IT BELIEVES ARE PRODUCING THE SHOES IT'S HARD TO FIND THEM THEY'RE VERY SLIPPERY MR XU SAYS AND SOCIETY JUST DOESN'T SEE THIS AS A PROBLEM STILL SOME COMPANIES ARE GETTING RESULTS ONE HONG KONG ELECTRONICS COMPANY RECENTLY OBTAINED A SETTLEMENT TOTALING HUNDREDS OF THOUSANDS OF US DOLLARS IN A CASE INVOLVING MORE THAN US1 MILLION WORTH OF COUNTERFEIT GOODS CHINA IS EXPECTED TO IMPLEMENT A NEW TRADEMARK LAW JULY 1 THAT WILL TIGHTEN UP SOME REGULATIONS SUCH AS PERMITTING REGISTRATION OF MARKS FOR SERVICESECTOR BUSINESSES AND GREATLY INCREASE FINES AND JAIL TERMS FOR VIOLATORS IT ALSO AGREED UNDER A MEMORANDUM OF UNDERSTANDING WITH THE US IN JANUARY 1992 AS PART OF SPECIAL 301 TRADE TALKS TO PUT AN UNFAIRCOMPETITION LAW INTO EFFECT BY JANUARY THAT SHOULD PROTECT UNREGISTERED TRADEMARKS AND PRODUCT PACKAGING 9304020089 930402 INSURANCE OFFICIALS BACK LAWS TO CURB DISCRIMINATION BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INSURANCE AUTHORITIES FOR CALIFORNIA MISSOURI AND TEXAS LENT THEIR SUPPORT TO FEDERAL LEGISLATION AIMED AT CURBING INSURANCE DISCRIMINATION AND RELATED ABUSES JAY ANGOFF INSURANCE DIRECTOR FOR MISSOURI ALSO GAVE A STUDY TO THE HOUSE CONSUMER CREDIT AND INSURANCE SUBCOMMITTEE SHOWING THAT IN KANSAS CITY AND ST LOUIS MINORITY CUSTOMERS IN RECENT YEARS PAID MORE FOR HOMEOWNER'S INSURANCE THAN WHITE POLICYHOLDERS AND THAT THE POLICIES PROVIDED NARROWER COVERAGE THE LOSSES EXPERIENCED BY MINORITIES WERE LOWER THAN FOR WHITES ACCORDING TO THE MISSOURI DATA THE LEGISLATION BACKED BY MR ANGOFF AND THE CALIFORNIA AND TEXAS OFFICIALS WAS RECENTLY INTRODUCED BY REP JOSEPH KENNEDY D MASS CHAIRMAN OF THE HOUSE SUBCOMMITTEE IT WOULD EXPAND THE POWERS OF THE FEDERAL INSURANCE ADMINISTRATION WHICH CURRENTLY PROVIDES CERTAIN FEDERALLY BACKED FLOOD AND OTHER INSURANCE THE FIA WOULD BE EMPOWERED TO REQUIRE DATA FROM STATEREGULATED PROPERTY AND CASUALTY INSURANCE COMPANIES THE DATA WOULD SPECIFY WHAT PERSONS THE COMPANIES ARE WILLING TO INSURE TO HELP STATE REGULATORS ENFORCE ANTIDISCRIMINATION LAWS THE KENNEDY BILL WOULD ALSO IMPOSE FEDERAL CERTIFICATION ON FOREIGN COMPANIES THAT SELL INSURANCE IN THE US MANY OF THOSE INSURERS FAIL TO PAY CLAIMS OF THEIR US CUSTOMERS OR GO BROKE THE STATE OFFICIALS SAID THE EVIDENCE IS COMPELLING THAT CONSUMERS ARE BEING EITHER NEGLECTED BY DOMESTIC INSURERS OR DEFRAUDED BY OFFSHORE ONES MR KENNEDY SAID VARIOUS OTHER BILLS ARE ALSO PENDING IN CONGRESS MOST OF WHICH WOULD SET FEDERAL SOLVENCY STANDARDS FOR INSURANCE COMPANIES PROVIDE FEDERAL REINSURANCE AFTER NATURAL DISASTERS SEEK TO CURB INSURANCE DISCRIMINATION AGAINST MINORITIES OR OTHERWISE EXPAND CURRENTLY MODEST FEDERAL INSURANCE REGULATION DAVID FARMER A LOBBYIST FOR THE ALLIANCE OF AMERICAN INSURERS A TRADE GROUP OF 200 PROPERTY AND CASUALTY INSURANCE COMPANIES OPPOSES THE KENNEDY BILL HE SAID IT WOULD CREATE AN UNNECESSARY DUALREGULATION SYSTEM AND THAT PROVIDING THE REQUIRED DATA WOULD BE COSTLY FOR THE INSURANCE INDUSTRY AND DUPLICATE EFFORTS BY STATE INSURERS HE ALSO SAID THAT INSURANCE COMMISSIONERS OF SEVERAL STATES INCLUDING MARYLAND AND VIRGINIA HAD SAID PUBLICLY THAT DISCRIMINATION ISN'T A PROBLEM IN THEIR STATES IN YESTERDAY'S HEARING CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI PRESENTED MAPS OF CENTRAL LOS ANGELES SHOWING THAT MAJOR INSURERS SELL FEW POLICIES IN LOWINCOME AREAS THAT ARE HEAVILY MINORITY BUT OVERSERVE HIGHINCOME AREAS THIS REDLINING PRACTICE HAS MEANT THAT BUSINESS OWNERS WERE FORCED TO USE OFTEN SCAM INSURANCE COMPANIES FOR COVERAGE AND LAST SPRING'S RIOTS WIPED MANY OF THEM OUT WHEN THEY FOUND THEIR POLICIES WERE WORTHLESS HE SAID CLAIRE KORIOTH CHAIRWOMAN OF THE TEXAS BOARD OF INSURANCE SAID THE STATE HAS HAD BIG PROBLEMS IN PURSUING COURT ACTION AGAINST PHONY OFFSHORE INSURANCE COMPANIES LOCATED ON ISLANDS LIKE VANUATU GUAM ST VINCENT AND THE GRENADINES TURKS AND CAICOS THE BAHAMAS MICRONESIA AND THE BRITISH VIRGIN ISLANDS FEDERAL HELP WILL STRENGTHEN STATE REGULATION ESPECIALLY BY PROVIDING MORE DATA ON THE INSURERS' OPERATIONS SHE SAID IT IS THE LIGHT OF DAY IT IS THE INFORMATION ITSELF THAT BRINGS ABOUT CHANGE 9304020088 930402 HOUSE PANEL CLEARS RULES FOR FINANCIAL ADVISERS WASHINGTON A HOUSE SUBCOMMITTEE APPROVED LEGISLATION THAT WOULD TIGHTEN REGULATION OF FINANCIAL ADVISERS WHILE GIVING INVESTORS MORE INFORMATION ABOUT ADVISERS' FEES AND THEIR DISCIPLINARY HISTORY THE BILL APPROVED BY THE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE WOULD ALSO RAISE THE REGISTRATION FEES PAID BY ADVISERS AND USE THE MONEY TO HIRE MORE INSPECTORS AT THE SECURITIES AND EXCHANGE COMMISSION THE SEC CURRENTLY OVERSEES ABOUT 18700 FINANCIAL ADVISERS WITH AN INSPECTION STAFF OF 48 UNDER AN AMENDMENT OFFERED BY SUBCOMMITTEE CHAIRMAN EDWARD MARKEY D MASS THE BILL WOULD ALSO REQUIRE THE ESTABLISHMENT OF A TOLLFREE NUMBER FOR INVESTORS TO CALL TO OBTAIN INFORMATION ABOUT ANY DISCIPLINARY ACTIONS AGAINST THEIR INVESTMENT ADVISERS SEPARATELY THE SUBCOMMITTEE APPROVED LEGISLATION THAT WOULD ALLOW MONEYMANAGEMENT FIRMS TO USE THEIR OWN BROKERS TO EXECUTE TRADES ON THE FLOOR OF THE NEW YORK STOCK EXCHANGE THE NONCONTROVERSIAL LEGISLATION WOULD REVOKE A PROHIBITION LEFT OVER FROM THE YEARS WHEN FLOOR BROKERS EARNED FIXED COMMISSIONS BOTH BILLS NOW PROCEED TO THE FULL ENERGY AND COMMERCE COMMITTEE 9304020087 930402 STONE CONTAINER PLANS DEBT EQUITY OFFERS TO RAISE 800 MILLION CHICAGO STONE CONTAINER CORP SAID IT PLANS TO RAISE 800 MILLION THROUGH A COMBINATION OF EQUITY SALES AND DEBT OFFERINGS AND USE THE FUNDS TO PAY DOWN BANK LOANS THE BIG PAPER MANUFACTURER SAID IT WILL RAISE AT LEAST 500 MILLION THROUGH AN EQUITY TRANSACTION OR A SERIES OF EQUITY TRANSACTIONS IT WILL RAISE AS MUCH AS 300 MILLION IN PUBLIC DEBT THE COMPANY DECLINED TO SPECIFY THE PARTICULAR FORM THE EQUITY AND DEBT TRANSACTIONS WOULD TAKE STONE CONTAINER OUTLINED ITS PLANS YESTERDAY ONLY AFTER NEW YORK STOCK EXCHANGE OFFICIALS ORDERED TRADING HALTED IN STONE CONTAINER SHARES EXCHANGE OFFICIALS ASKED STONE CONTAINER TO CLARIFY STATEMENTS IN ITS 10K REPORT FILED WEDNESDAY WHICH SAID THE COMPANY INTENDED TO ACHIEVE GREATER LIQUIDITY AND FINANCIAL FLEXIBILITY BEFORE TRADING HALTED AT MIDDAY STONE CONTAINER STOCK WAS TRADING AT 12625 DOWN 1 IN COMPOSITE TRADING STONE CONTAINER OFFICIALS SAID THEY EXPECTED THE COMPANY'S STOCK TO RESUME TRADING BY TODAY IN FEBRUARY THE COMPANY REPORTED A NET LOSS OF 1705 MILLION OR 110 A SHARE FOR 1992 IN 1991 STONE CONTAINER RECORDED A NET LOSS OF 491 MILLION OR 78 CENTS A SHARE STONE CONTAINER OFFICIALS DECIDED TO MAKE THE FINANCIAL MOVES BECAUSE IT WAS NO LONGER PRUDENT TO WAIT FOR PAPER PRICES TO RECOVER ALTHOUGH SUCH A RECOVERY SEEMS TO BE NEAR SAID ARNOLD F BROOKSTONE STONE CONTAINER CHIEF FINANCIAL OFFICER THE MOTIVATION IS TO FIX OUR BALANCE SHEET AND ALLAY THE CONCERNS THE MARKET HAS HAD 9304020086 930402 MONEY FUND ASSETS SHOWED SHARP DECLINE IN MOST RECENT WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS DECLINED BY A STEEP 2407 BILLION TO 57013 BILLION FROM 5942 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED THE DROP IN INSTITUTIONAL FUND ASSETS ACCOUNTED FOR MOST OF THE DECLINE IN MONEY MARKET FUNDS THE TRADE GROUP SAID AS THE FEDERAL FUNDS RATE SHOT UP FROM UNDER 3 IN THE PRIOR WEEK TO OVER 4 LAST WEDNESDAY WHILE THE YIELD OFFERED BY MONEY MARKET FUNDS HASN'T BUDGED MASSIVE OUTFLOWS FROM FUNDS INTO THE REPO MARKET ENSUED SAID JACOB DREYER CHIEF ECONOMIST OF THE INSTITUTE REPO TRANSACTIONS TYPICALLY ARE AGREEMENTS TO REPURCHASE US GOVERNMENT SECURITIES AT AGREED UPON PRICES AND TIMES SUCH SHARP MOVEMENTS OF ASSETS IN RESPONSE TO SHARP FLUCTUATIONS IN THE FEDERAL FUNDS RATE ARE PRETTY TYPICAL AND GET REVERSED WHEN THIS RATE RETURNS TO WHAT IS PERCEIVED AS ITS NORMAL RANGE DR DREYER SAID ASSETS OF 623 RETAIL MONEY MARKET MUTUAL FUNDS DECREASED BY 565 BILLION TO 38769 BILLION THE TRADE GROUP SAID ASSETS OF 388 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 496 BILLION TO 30557 BILLION ASSETS OF 235 RETAIL TAXEXEMPT FUNDS FELL BY 6885 MILLION TO 8213 BILLION ASSETS OF THE 269 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 1842 BILLION TO 18244 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 219 TAXABLE MONEY MARKET FUNDS FELL BY 1793 BILLION TO 16198 BILLION ASSETS OF 50 TAXEXEMPT FUNDS FELL BY 4912 MILLION TO 2046 BILLION 9304020085 930402 DIVIDEND DECLARATIONS LAST MONTH REFLECTED IMPROVING CONDITIONS NEW YORK STANDARD & POOR'S CORP SAID DIVIDEND ACTIONS TAKEN BY US CORPORATIONS IN MARCH CONTINUED TO REFLECT IMPROVING BUSINESS CONDITIONS S&P SAID THAT NOT ONLY WERE THERE MORE DIVIDEND INCREASES LAST MONTH THAN FOR ANY MARCH SINCE 1989 BUT THAT THE MONTH ALSO SAW THE FEWEST UNFAVORABLE DIVIDEND ACTIONS THE NUMBER OF INCREASES IN DIVIDENDS REPORTED TO S&P FOR THE LATEST MONTH AND FOR THE FIRST QUARTER BOTH ROSE 28 FROM A YEAR EARLIER INCREASES IN PAYMENTS TOTALED 124 IN MARCH AND 443 FOR THE QUARTER UP FROM 98 AND 351 THE YEAR BEFORE RESPECTIVELY DIVIDEND DECREASES FELL TO NINE IN MARCH FROM 18 IN THE YEAREARLIER MONTH LAST YEAR WHILE OMISSIONS DROPPED TO 11 FROM 14 S&P REPORTED 33 DIVIDEND CUTS AND 30 OMISSIONS IN THE FIRST QUARTER OF 1993 COMPARED WITH 43 CUTS AND 34 OMISSIONS IN THE FIRST QUARTER OF 1992 9304020084 930402 COMMODITIES BULL MARKET IN LUMBER MAY BE OVER BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO IN THE LUMBERFUTURES PIT AT THE CHICAGO MERCANTILE EXCHANGE ONE OF THE GREATEST BULL MARKETS IN HISTORY MAY FINALLY HAVE RUN ITS COURSE AFTER SKYROCKETING MORE THAN 150 IN FOUR MONTHS LUMBER PRICES ARE NOW PLUMMETING ALMOST AS QUICKLY AS THEY ROSE FOR EACH OF THE PAST TWO DAYS LUMBERFUTURES PRICES HAVE SUNK THE DAILY LIMIT OF 10 THE MAY CONTRACT SETTLED YESTERDAY AT 389 PER THOUSAND BOARD FEET WELL BELOW ITS MARCH 15 PEAK OF 45820 AND TRADERS EXPECT PRICES TO FALL SHARPLY AGAIN TODAY WHEN THE MARKET WAS GOING UP IT WAS DRIVEN BY PANIC BUYING SAYS JIM CONNELLY A VETERAN LUMBERFUTURES TRADER AT THE CHICAGO MERC PEOPLE NEEDED LUMBER FOR THE SPRING BUILDING SEASON AND THEY DIDN'T CARE WHAT PRICES THEY WERE PAYING FOR IT BUT THAT SITUATION HAS CHANGED BAD WEATHER AND HIGH LUMBER PRICES HAVE STALLED CONSTRUCTION OF SINGLEFAMILY HOMES IN ADDITION TRADERS ARE NERVOUS ABOUT TODAY'S TIMBER SUMMIT IN PORTLAND ORE WHICH PRESIDENT CLINTON AND VICE PRESIDENT ALBERT GORE WILL ATTEND ANY SIGN AT THE SUMMIT OF CHANGES IN FEDERAL LOGGING RESTRICTIONS OR POLICY ON US TIMBER EXPORTS COULD SUSTAIN THE CURRENT PRICE DOWNDRAFT ANALYSTS SAY SOME SPECULATE THAT LUMBERFUTURES PRICES WILL BOTTOM OUT AT ABOUT 330 PER THOUSAND BOARD FEET BUT NO ONE REALLY KNOWS FOR SURE IN ANY CASE 1993'S WILD LUMBER MARKET HAS PUT THE CHICAGO MERC'S PREVIOUSLY OBSCURE LUMBER FUTURES AND OPTIONS CONTRACTS ON THE MAP IN THE PAST STOCK BOND AND COMMODITY TRADERS USED THE CONTRACTS MAINLY AS INDICATORS OF THE VITALITY OF THE US HOUSING INDUSTRY NOW THE MERC CONTRACTS HAVE BECOME REDHOT TRADING VEHICLES COMMODITY FUNDS THE MANAGED POOLS OF INVESTORS' MONEY THAT HAVE COME TO DOMINATE MANY FUTURES MARKETS HAVE BECOME BIG PLAYERS IN LUMBER A PRODUCT THEY PREVIOUSLY SPURNED PRICE VOLATILITY IN THE CONTRACTS WHICH MOST COMMODITY TRADERS RELISH HAS NEVER BEEN HIGHER NONE OF US HAS EVER SEEN ANYTHING LIKE IT SAYS TED BLOCH PRESIDENT OF BLOCH LUMBER CO A LUMBER WHOLESALER ACTIVE IN THE FUTURES MARKET THE MARKET IS LIKE THE BOY THAT CRIED WOLF FOR YEARS LUMBER MILLS WARNED US THERE WAS A SHORTAGE OF LUMBER FOR CUTTING IT DIDN'T MATERIALIZE AND FINALLY WE STOPPED PAYING ATTENTION THEN ONE DAY WE WOKE UP AND THE WOLF WAS AT THE DOOR IN FEBRUARY THE MERC'S LUMBER FUTURES HAD A STREAK OF 22 CONSECUTIVE DAILY LIMIT PRICE JUMPS AS BUILDERS AND LUMBERYARDS SCRAMBLED TO GET THE SUPPLIES OF WOOD THEY NEEDED DURING THE STREAK PRICES ROSE THE DAILY LIMIT AS SOON AS THE OPENING BELL SOUNDED AND LOCKED THERE NOT TO TRADE AGAIN FOR THE REST OF THE DAY BECAUSE FUTURES CONTRACTS AREN'T AVAILABLE FOR PURCHASE OR SALE WHEN LOCKED AT THE DAILY PRICE LIMIT TRADING OF LUMBEROPTIONS CONTRACTS HAS SURGED FUTURES ARE COMMITMENTS TO BUY LUMBER FOR A SPECIFIED PRICE ON SOME FUTURE DATE WHILE MORE FLEXIBLE OPTIONS MERELY ENTITLE A TRADER TO BUY OR SELL WOOD IN THE FUTURE MONTHLY VOLUME IN THE MERC'S LUMBEROPTIONS PIT HAS AVERAGED 3095 CONTRACTS THIS YEAR UP FROM AN AVERAGE OF 440 CONTRACTS IN 1992 THE CURRENT DROP IS GOOD NEWS FOR THE HOUSING INDUSTRY WHOSE PROFITS ARE HURT BY RISING LUMBER PRICES GOPAL AHLUWALIA RESEARCH DIRECTOR FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS SAYS THE PRICE RUNUP HAS ADDED 5000 TO THE PRICE OF AN AVERAGE 2000 SQUARE FOOT SINGLEFAMILY HOME AT SOME POINT IT SIMPLY HAD TO STOP MR AHLUWALIA SAYS A LOT OF PEOPLE ARE HOLDING BACK NOW NOT BUYING LUMBER AT ALL THE DEMAND FOR LUMBER ISN'T HIGH ENOUGH TO SUPPORT THESE PRICES BASICALLY SUPPLYANDDEMAND FORCES DRIVING THE LUMBER MARKET HAVE REVERSED DURING JANUARY FEBRUARY AND MARCH PRIME TIME FOR BUILDERS TO STOCK UP ON LUMBER FOR THE SPRING BUILDING SEASON LUMBER MILLS IN THE PACIFIC NORTHWEST AND THE BRITISH COLUMBIA REGION OF CANADA WERE UNABLE TO KEEP UP WITH DEMAND FROM BUILDERS THIS DROVE UP PRICES ON THE CASH MARKET FOR WOOD WHICH PUSHED FUTURES PRICES HIGHER AT THE CHICAGO MERC NOW HOWEVER MANY BUILDERS HAVE LOCKED IN THE SUPPLIES THEY NEED OTHERS SIMPLY CAN'T AFFORD TO PAY TODAY'S PRICES THE ERODING DEMAND HAS PROMPTED FUTURES TRADERS TO BID PRICES DOWN AND AFTER MONTHS OF BEING LED HIGHER BY ESCALATING CASH PRICES THE MERC'S FUTURES MARKET IS NOW LEADING THE CASH MARKET LOWER FUTURES PRICES ARE WAY BELOW CASH PRICES AT THE MOMENT SAYS STEVEN MOORE PRESIDENT OF MOORE RESEARCH CENTER A COMMODITYANALYSIS FIRM IN EUGENE ORE I THINK FUTURES WILL PULL CASH DOWN IN BIG HUNKS IN THE PAST FEW DAYS COMMODITY FUNDS' EFFORTS TO LIQUIDATE LONG POSITIONS OR WAGERS THAT PRICES WILL RISE HAVE CONTRIBUTED TO THE STRONG DOWNDRAFT IN PRICES THESE FUNDS ARE RELUCTANT TO HOLD MAJOR POSITIONS IN ADVANCE OF POTENTIALLY MARKETMOVING NEWS THAT MAY COME OUT OF THE TIMBER SUMMIT MANY TRADERS ARE PARTICULARLY WORRIED ABOUT THE POSSIBILITY OF A CLINTON ADMINISTRATION BAN ON TIMBER EXPORTS TO JAPAN ANALYSTS SAY THERE MIGHT BE SOME SORT OF RESTRICTION ON TIMBER EXPORTS SAYS BUD MERRILL LUMBER ANALYST FOR SHEARSON LEHMAN BROTHERS THAT COULD PUT ONE MORE DOWNWARD SHOCK WAVE INTO THE MARKET STILL MR MERRILL ISN'T AMONG THOSE PREDICTING THAT THE MAY LUMBERFUTURES CONTRACT WILL DECLINE TO 330 PER THOUSAND BOARD FEET WITHIN THE NEXT THREE TRADING SESSIONS AT THE MERC I THINK WE'LL PLATEAU AND THEN SEE SOME PRICE STABILITY HE SAYS A LOT OF PEOPLE THAT HAVE POSTPONED BUYING FOR CONSTRUCTION JOBS WILL STEP UP AND DO SOME BUYING BLOCH LUMBER'S MR BLOCH A 45YEAR VETERAN OF THE BUSINESS SAYS HE THINKS THE 1993 BULL MARKET HAS CAUSED PERMANENT CHANGES IN LUMBER PRICE LEVELS THE MARKET'S GOING TO ADJUST DOWNWARD BUT I FEEL WE'LL STILL HAVE STRONGER PRICES THAN WE HAD IN THE PAST HE SAYS THERE'S BEEN A BASIC STRUCTURAL CHANGE IN THE MARKET AND WE'RE NOT GOING TO RETRACE TO FORMER LEVELS IN OTHER COMMODITY MARKETS PRECIOUS METALS GOLDFUTURES PRICES CONTINUED TO POWER AHEAD CLOSING ABOVE THE PSYCHOLOGICALLY IMPORTANT 340 AN OUNCE LEVEL A WEAK DOLLAR HELPED CONTRIBUTE TO THE PRECIOUS METAL'S LATEST GAINS TRADERS SAID GOLD TENDS TO MOVE INVERSELY WITH THE DOLLAR THE WEAKNESS IN THE DOLLAR PROVIDED SOME AFTERNOON SUPPORT GOLD IS NOW SEEMINGLY MORE WILLING TO RESPOND TO CONSTRUCTIVE NEWS THAN IT HAS BEEN IN THE PAST SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST WITH MERRILL LYNCH ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY JUMPED 90 CENTS TO SETTLE AT 34020 AN OUNCE THE CLIMB FOLLOWS A 50CENT RISE WEDNESDAY AND A 490 JUMP TUESDAY ON A HOST OF FACTORS INCLUDING THE WEAKENING DOLLAR AND CONCERNS THAT INFLATION MAY BE PICKING UP GOLD'S CONTINUING STRENGTH HELPED PUSH OTHER PRECIOUSMETALS PRICES HIGHER SILVER FOR MAY DELIVERY CLOSED 18 CENTS HIGHER AT 391 AN OUNCE ON THE COMEX PALLADIUM FOR JUNE DELIVERY FINISHED 150 HIGHER AT 11150 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE WHILE JULY PLATINUM SETTLED AT 36370 AN OUNCE UP 20 CENTS ENERGY DESPITE ESTIMATES OF OVERPRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FILTERING THROUGH THE OIL MARKETS CRUDE AND PETROLEUM PRICES GENERALLY ROSE OPEC PUMPED AN AVERAGE OF 2443 MILLION BARRELS DAILY IN MARCH ABOUT 848000 ABOVE THE CARTEL'S PRODUCTION CEILING ACCORDING TO A SURVEY BY THE DOW JONES INTERNATIONAL PETROLEUM REPORT OIL PRODUCTION BY IRAN WAS SIGNIFICANTLY ABOVE ITS QUOTA THE SURVEY FOUND TRADERS GENERALLY SHRUGGED OFF THE NEWS PRICES OPENED HIGHER IN THE MORNING AND CLIMBED STEADILY THROUGH THE SESSION MOSTLY BECAUSE OF TECHNICAL FACTORS TRADERS SAID ON THE NEW YORK MERCANTILE EXCHANGE LOWSULFUR CRUDE OIL FOR MAY DELIVERY SETTLED AT 2052 A BARREL UP EIGHT CENTS MAY HEATING OIL ROSE 054 CENT TO 5665 CENTS A GALLON COFFEE COFFEEFUTURES PRICES FELL BACK AMID CONTINUED MARKET CONCERN ABOUT LARGE INVENTORIES ON THE COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MAY DELIVERY CLOSED 08 CENT LOWER AT 578 CENTS A POUND FOLLOWING THE COLLAPSE OF INTERGOVERNMENTAL PRICE STABILIZATION NEGOTIATIONS WEDNESDAY THERE ISN'T MUCH HOPE FOR A PRICE RISE SAYS NESTOR OSORIO COLOMBIA'S LONDON COFFEE REPRESENTATIVE THE ONLY CHANCE FOR DESPERATE PRODUCERS IS NEWS OF A POOR BRAZILIAN CROP IN THE SUMMER IN THE MEANTIME A WELL SUPPLIED MARKET IS LIKELY TO REMAIN VOLATILE WORLDWIDE COFFEE PRODUCTION AND CONSUMPTION ARE VIRTUALLY IN BALANCE BUT MANUFACTURERS AND MERCHANTS IN CONSUMING NATIONS HOLD ABOUT 19 MILLION BAGS OF COFFEE WELL ABOVE THE NORM OF AROUND 10 MILLION BAGS ACCORDING TO ESTIMATES OF SEVERAL ANALYSTS AND TRADERS SOME 30 MILLION BAGS OF INVENTORIES HELD BY BRAZIL AND COLOMBIA WON'T BE DUMPED ON THE MARKET MR OSORIO SAYS BUT OTHER PRODUCERS HOLD AROUND 17 MILLION BAGS 9304020083 930402 DIVIDEND NEWS CENFED FINANCIAL CORP CENFED FINANCIAL CORP PASADENA CALIF SAID ITS BOARD DECLARED A 3FOR2 STOCK SPLIT TO BE DISTRIBUTED MAY 7 TO SHARES OF RECORD APRIL 19 AFTER THE SPLIT THE HOLDING COMPANY FOR CENFED BANK WILL HAVE ABOUT 41 MILLION COMMON SHARES OUTSTANDING 9304020082 930402 MERCEDES MULLS SHORT LIST' OF POSSIBLE US PLANT SITES A WALL STREET JOURNAL NEWS ROUNDUP MERCEDESBENZ AG THE GERMAN LUXURY CAR MAKER IS LOOKING AT A SHORT LIST OF US SITES TO BUILD A NEW ASSEMBLY PLANT BUT HASN'T YET CHOSEN A WINNER A COMPANY OFFICIAL SAID YESTERDAY THREE TOP MERCEDES OFFICIALS ARE SCHEDULED TO GIVE A NEWS CONFERENCE MONDAY IN THE DETROIT SUBURB OF DEARBORN WHERE IT'S EXPECTED THEY WILL DISCUSS THE US FACTORY PLAN ANALYSTS EXPECT THE DAIMLERBENZ AG UNIT TO ANNOUNCE A PLAN TO BUILD A NEW LUXURY SPORTUTILITY VEHICLE CALLED THE GELANDEWAGEN IN THE US FACILITY THE VEHICLE IS DUE IN 1997 THE US PLANT COULD BE THE SOLE PRODUCER OF THE VEHICLE AND EXPORT IT WORLDWIDE ANALYSTS SPECULATE PRODUCTION COULD START AT AS LITTLE AS 25000 VEHICLES ANNUALLY ANALYSTS SAY IN FIVE TO SEVEN YEARS HOWEVER THE PLANT COULD EXPAND ITS PRODUCT LINE AND REACH CAPACITY OF AS MUCH AS 100000 VEHICLES A YEAR ANALYSTS SAY 9304020081 930402 ECONOMY MANUFACTURING GROWTH SLOWED AGAIN LAST MONTH PURCHASING MANAGERS SAY BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GROWTH IN THE MANUFACTURING SECTOR SLOWED FOR THE SECOND STRAIGHT MONTH IN MARCH AFTER HITTING A FOURYEAR HIGH IN JANUARY ACCORDING TO A SURVEY OF PURCHASING MANAGERS THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDEX FELL TO 534 LAST MONTH DOWN FROM FEBRUARY'S 558 AND JANUARY'S 58 THE INDEX WHICH PROVIDES AN EARLY LOOK AT MANUFACTURING PERFORMANCE IS BASED ON A SURVEY OF THE ASSOCIATION'S MEMBERS IT USES A SCALE IN WHICH READINGS ABOVE 50 INDICATE MANUFACTURING GROWTH AND READINGS BELOW 50 INDICATE MANUFACTURING DECLINE THE ASSOCIATION'S EMPLOYMENT INDEX FELL 18 POINTS TO 469 IN MARCH SUGGESTING A DECLINE IN JOBS THE LABOR DEPARTMENT SAID YESTERDAY THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE A SEASONALLY ADJUSTED 33000 IN THE WEEK ENDED MARCH 27 THE RISE PUSHED INITIAL CLAIMS TO 380000 THE HIGHEST MARK SINCE NOV 7 1992 WHEN THE FIGURE HIT 382000 FURTHER DARKENING THE EMPLOYMENT PICTURE A SURVEY OF MEMBERS OF THE AMERICAN BUSINESS CONFERENCE A GROUP OF MIDSIZE COMPANIES FOUND THAT ONLY 17 REPORT PLANS FOR HIRING IN THE SECOND QUARTER WHILE 64 PREDICT HIGHER SALES AND SHIPMENTS ON THE SUNNY SIDE OF THE PURCHASING MANAGERS' REPORT THE GROWTH WAS BROADBASED WITH 16 OUT OF 20 INDUSTRIES REPORTING EXPANSION IT WAS ALSO THE SIXTH CONSECUTIVE READING ABOVE 50 THE PURCHASING MANAGERS REPORTED FALLING PRICES AFTER A JUMP IN FEBRUARY EXPORTS HOWEVER DROPPED TO 499 THE FIRST TIME THIS FIGURE HAS BEEN BELOW THE 50 BENCHMARK SINCE THE ASSOCIATION BEGAN KEEPING IT FOUR YEARS AGO IT HAS NEVER MISSED A MONTH'S RISE SAID ROBERT BRETZ THE CHAIRMAN OF THE INDEX SURVEY WHEN YOU COMBINE THAT WITH STORIES ABOUT THE JAPANESE AND EUROPEAN ECONOMIES IT IS NOT ENCOURAGING SEPARATELY THE COMMERCE DEPARTMENT REPORTED THAT NEW CONSTRUCTION SPENDING INCHED UP 01 IN FEBRUARY BUILDING CONTRACTS REACHED A SEASONALLY ADJUSTED ANNUAL RATE OF 43840 BILLION UP FROM THE REVISED JANUARY FIGURE OF 43790 BILLION PRIVATE CONSTRUCTION REGISTERED A 02 LOSS WHILE PUBLIC CONSTRUCTION GAINED 07 FOR THE MONTH IT WAS BASICALLY FLAT AND THAT REFLECTS THE WAY CONSTRUCTION WAS GOING SAID MARK OBRINSKY SENIOR ECONOMIST FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION MR OBRINSKY BLAMED THE STAGNATION ON POOR WEATHER AND PREDICTED A PICKUP IN THE WARMER MONTHS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES 9304020080 930402 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 1/2 HIGH 3 3/16 LOW 3 3/8 NEAR CLOSING BID 3 1/2 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 318 30 DAYS 318 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 266 TWO MONTHS 270 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 304 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 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 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 731 60 DAYS 741 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 729 60 DAYS 739 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 279 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304020079 930402 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON AIDES PUSH A BROAD HEALTHBENEFITS PLAN THAT MAY IRK THE ELDERLY ADMINISTRATION OFFICIALS WANT TO MAKE THE BENEFITS PACKAGE IN THE PRESIDENT'S HEALTHREFORM PLAN AS GENEROUS AS A GOOD UNION HEALTH PACKAGE THEY TELL HOUSE DEMOCRATS THEY WANT TO INCLUDE COVERAGE FOR AN ARRAY OF PREVENTIVE SERVICES AND A PRESCRIPTIONDRUG BENEFIT BUT OFFICIALS DOUBT THEY CAN AFFORD TO ADD PRESCRIPTIONS TO MEDICARE A RICH BENEFITS PACKAGE IS CRITICAL TO WINNING SUPPORT OF LABOR AND OTHER CONSTITUENCIES OFFICIALS BELIEVE BUT SOME LAWMAKERS WORRY ABOUT ANGERING ELDERLY VOTERS EVEN AS CLINTON'S BUDGET SEEKS TO SQUEEZE BILLIONS IN SAVINGS OUT OF MEDICARE A BENEFIT THAT EXCLUDES PEOPLE OVER 65 ISN'T SUSTAINABLE ETHICALLY MORALLY POLITICALLY OR ANY OTHER WAY WARNS THE AMERICAN ASSOCIATION OF RETIRED PERSONS' JOHN ROTHER HILLARY RODHAM CLINTON'S CONTINUING ABSENCE FROM WASHINGTON DUE TO HER FATHER'S ILLNESS MAY POSTPONE THE MAY 3 RELEASE DATE OF THE HEALTH PLAN PORK BARREL POLITICKING HEATS UP AS CONGRESS MOVES ON CLINTON'S BUDGET PLAN GORE SENATE BUDGET CHIEF SASSER BOTH TENNESSEANS AND ALABAMA SEN HEFLIN GET THE WHITE HOUSE TO DROP PLANS TO KILL TWO TENNESSEE VALLEY AUTHORITY OPERATIONS SCRAPPING THEM WOULD HAVE SAVED 240 MILLION OVER FIVE YEARS THE ADMINISTRATION ALSO IS EXPECTED TO PROTECT A MONTEREY BAY CALIF RESEARCH STATION IN BUDGET CHIEF PANETTA'S OLD CONGRESSIONAL DISTRICT THE FEDERAL OCEANIC AGENCY BRACES FOR COMPLAINTS BY SEN INOUYE ABOUT RESEARCHCENTER CUTS IN HAWAII SEN JOHNSTON IS SURE TO FIND MONEY FOR LOUISIANA'S RED RIVER WATERWAY PROJECT BEFORE CLINTON'S SUMMIT THIS WEEKEND WITH YELTSIN SECRETARY OF STATE CHRISTOPHER GOT LAWMAKERS TO ADD ABOUT 1 BILLION IN BUDGET AUTHORITY FOR AN ACCOUNT THAT INCLUDES FOREIGN AID REPUBLICANS THREATEN BUSINESS INTERESTS FOR BEING TOO SOFT ON CLINTON GOP HOUSE LEADERS IN A LETTER ASSAIL THE CHAMBER OF COMMERCE'S COOPERATIVE STANCE ON CLINTON'S BUDGET AND HEALTHCARE PLANS AS UNACCEPTABLE THEY WARN THE RAMIFICATIONS COULD BE QUITE SEVERE A SPOKESMAN FOR REP GINGRICH LAMBASTES ARCO EXECUTIVES FOR BACKING CLINTON'S ECONOMIC EFFORT WHILE PRAISING THE AMERICAN PETROLEUM INSTITUTE AND THE NATIONAL FEDERATION OF INDEPENDENT BUSINESSES FOR RAISING OBJECTIONS CHAMBER PRESIDENT RICHARD LESHER CHARACTERIZES THE GOP LETTER AS AN ATTEMPT TO DICTATE CHAMBER POSITIONS IVAN GORR THE CHAMBER'S CHAIRMAN COMPLAINS THE REPUBLICANS WANT HIS GROUP A FREQUENT GOP ALLY TO BE AN OFFICIAL ARM OF THE CONSERVATIVE OPPORTUNITY SOCIETY IN A LETTER TO MEMBERS THE CHAMBER VOWS TO FOLLOW A BIPARTISAN COURSE THE GOP LEADERS WILL ESCALATE THEIR ATTACK BY PROVIDING HOUSE MEMBERS WITH ANTICHAMBER PACKETS TO GIVE LOCAL BUSINESS OWNERS GAYRIGHTS BACKERS FEAR THE PUSH FOR SUPPORT TO LIFT THE BAN ON HOMOSEXUALS IN THE MILITARY MAY BE UNDERCUT BY EXTREMIST ACTIVISTS AT AN APRIL 25 MARCH ON WASHINGTON THE GAY NATHAN HALE BRIGADE SEEKS COMPROMISING INFORMATION TO INTIMIDATE CONGRESSIONAL CRITICS CLINTONITES SCRAMBLE TO DEVELOP A TOUGH TRADE AND SECURITY POLICY TOWARD JAPAN IN TIME FOR THE PRESIDENT'S APRIL 16 MEETING WITH MIYAZAWA AN EARLY DRAFT POLICY IS THROWN OUT AS TOO WEAK JAPAN WILL BE PRESSED TO ACCEPT QUOTAS FOR US AUTO PARTS SEMICONDUCTORS AND PERHAPS OTHER PRODUCTS SUCH AS SUPERCOMPUTERS DIPLOMATIC PLUMS ARE SET FOR LONGTIME DEMOCRATS FORMER CARTER ADVISER STUART EIZENSTAT IS IN LINE TO BE NAMED AMBASSADOR TO THE EUROPEAN COMMUNITY DEFEATED NEW YORK REP STEPHEN SOLARZ IS EXPECTED TO BECOME AMBASSADOR TO INDIA IF HE IS CLEARED OF CONGRESSIONAL CHECKBOUNCING ALLEGATIONS RAZORBACK RIVALS COMPETE FOR THE FDIC CHAIRMAN POST ARKANSAS BANKER WILLIAM BOWEN A FORMER TOP CLINTON AIDE HAS BEEN THE TOP CONTENDER BUT NOW WILLIAM BRANDON A SMALLTOWN ARKANSAS BANKER IS PUSHED FOR THE POST BY THE HEAD OF THE STATE'S BIG WORTHEN BANK ALSO POSSIBLE WASHINGTON DC BANKING LAWYER JOHN HAWKE GOVERNORS FACE LINGERING ANTIINCUMBENT ANGER IN REELECTION RACES OF GOVERNORS LIKELY TO RUN IN 36 RACES THIS YEAR AND NEXT ONLY VERMONT'S DEMOCRATIC GOV DEAN IS A SHOOIN SAYS POLITICAL ANALYST CHARLES COOK HE RATES 16 RACES AS TOSSUPS THOSE VULNERABLE NEXT YEAR INCLUDE FLORIDA GOV CHILES A DEMOCRAT AND GOP GOV WILSON OF CALIFORNIA EVEN CUOMO COULD FACE A TOUGH FIGHT IN NEW YORK IF HE RUNS AND IF HE ISN'T PUT ON THE SUPREME COURT FIRST THE FATES OF WILSON AND NEW JERSEY DEMOCRAT FLORIO WHO LIKE PRESIDENT CLINTON MOVED TO RAISE TAXES SOON AFTER TAKING OFFICE COULD PROVIDE A CLUE TO THE NEXT PRESIDENTIAL RACE THIS WILL BE A GREAT INDICATION OF WHAT WILL HAPPEN IN 1996 DO VOTERS TAKE IT OUT ON GOVERNORS WHO RAISE TAXES SAYS GOP POLLSTER NEIL NEWHOUSE ONE REPUBLICAN WHO LOOKS FAIRLY COMFORTABLE WISCONSIN'S GOV THOMPSON WHOSE JOB PERFORMANCE RATINGS ARE HIGH MINOR MEMOS THE CAPITOL HILL NEWSPAPER ROLL CALL REPORTED YESTERDAY THAT CONGRESS PLANS TO BUILD A GOLF COURSE AT THE CAPITOL WHERE WOMEN WOULD BE REQUIRED TO TEE OFF AFTER 1 PM IT WAS AN APRIL FOOL'S JOKE THE DEMOCRATIC LEADERSHIP COUNCIL'S LINK TO CLINTON PAYS OFF BIG THE MODERATE GROUP HAS RAISED MORE THAN 35 MILLION SINCE DECEMBER MORE THAN IN ITS FIRST FOUR YEARS COMBINED 9304020078 930402 POTOMAC WATCH CONGRESS SEES ITSELF IN CLINTON AND LIKES IT BY PAUL A GIGOT WHEN BILL CLINTON MET WITH THE TITANS OF CAPITOL HILL LAST DECEMBER JACK BROOKS HAD A REQUEST THE BALD BRUSQUE BARON OF HOUSE JUDICIARY ASKED THE PRESIDENTELECT TO ENDORSE A RENEWAL OF THE INDEPENDENTCOUNSEL LAW THAT PROBES EXECUTIVEBRANCH OFFICIALS MR CLINTON OBLIGED A FEW DAYS LATER AND MR BROOKS DECLARED VICTORY BUT IS THIS ALSO A VICTORY FOR MR CLINTON WHOSE APPOINTEES WILL NO DOUBT BECOME TARGETS OF THAT LAW THE QUESTION COMES TO MIND AMID THE RAVES MR CLINTON IS GETTING BECAUSE CONGRESSIONAL DEMOCRATS HAVE ENDORSED HIS BUDGET OUTLINE THE PRESIDENT WHO WAS A RUBE FROM SMALLSTONE ONLY TWO MONTHS AGO IS SUDDENLY BEING HAILED AS A GENIUS JACK VALENTI THE USUALLY COOL MOVIE LOBBYIST SAYS MR CLINTON HAS SHOWN THE OUTSIDE GIFTS OF JFK AND THE INSIDE SKILLS OF LBJ THE WASHINGTON POST STEALING THE CLINTON SUCKUP AWARD FROM THE CHAMBER OF COMMERCE SAYS THE CITY IS DAZZLED BY MR CLINTON'S PROWESS APART FROM THE FICKLENESS OF THE PRESS WHAT'S GOING ON HERE LET'S GRANT THAT MR CLINTON IS A GREAT SALESMAN A CHARMING SMART SCHMOOZER WHO'S HAD A GOOD RUN BUT HIS TRIUMPH IS ALSO RELATIVE AFTER THE BUSH PRESIDENCY EVEN A GLACIER WOULD APPEAR TO BE MOVING MORE OMINOUSLY FOR HIS FUTURE THE REAL SECRET OF BILL CLINTON'S EARLY SUCCESS IS REVEALED IN THAT JACK BROOKS ANECDOTE WHEN CONGRESS TALKS BILL CLINTON LISTENS AND THEN SALUTES THIS STRATEGY IS EXACTLY THE OPPOSITE OF JIMMY CARTER'S IN HIS FIRST YEAR MR CARTER TRIED TO SEND CONGRESS A MESSAGE BY VETOING WATER PROJECTS BUT WAS OVERRIDEN AND SUFFERED A LOSS OF CLOUT THE CLINTON STRATEGY IS TO BUILD CLOUT BY EMBRACING THE CONGRESSIONAL AGENDA THE PRESIDENT'S RHETORIC RETAINS THE OUTSIDER SHAKE'EMUP QUALITY OF THE CAMPAIGN BUT THE POLICY IS TO GIVE THE MEMBERS WHAT THEY WANT THE PATTERN BEGAN WITH APPOINTMENTS RIGHT AFTER THE ELECTION GEORGE MITCHELL THE SENATE MAJORITY LEADER AND NOTED CHANGE AGENT OBJECTED TO PAUL VOLCKER AS TREASURY SECRETARY AND MR CLINTON NIXED HIM DICK GEPHARDT THE HOUSE MAJORITY LEADER RECOMMENDED HOUSE STALWART LEON PANETTA AS BUDGET DIRECTOR AND MR CLINTON CHOSE HIM CLINTON OFFICIALS ADMIT PRIVATELY THAT THEIR ECONOMIC PLAN WAS MORE OR LESS CONGRESSDESIGNED WHEN ONE VISITOR GRIPED TO TREASURY SECRETARY LLOYD BENTSEN ABOUT THE MANY TAXES AND FEW SPENDING CUTS HE REPLIED THAT IT HAS TO PASS WITH DEMOCRATIC VOTES ONLY IN WASHINGTON IS IT A MARK OF GENIUS TO PERSUADE DEMOCRATS TO PASS A TAX AND SPENDING INCREASE THEY HAVE WANTED FOR A DECADE MR CLINTON IS GETTING CREDIT NOW FOR BREAKING GRIDLOCK BUT HIS TIMIDITY IN CUTTING SPENDING MEANS THE DEFICIT WILL RETURN TO HAUNT HIS PRESIDENCY MR CLINTON IS BEING CALLED THE DEMOCRATIC RONALD REAGAN BUT MR REAGAN CONVINCED DEMOCRATS TO DO THINGS THEY DIDN'T LIKE MR CLINTON HAS LED NO SUCH BATTLES RECALL THE LINEITEM VETO APPARENTLY MR CLINTON DOESN'T BECAUSE HE NEVER BRINGS IT UP THE HOUSE MAY PASS A WATEREDDOWN VERSION BUT TO PREVAIL IN THE SENATE MR CLINTON WOULD HAVE TO ROLL OVER ROBERT BYRD WHO HAS BEEN CARRYING WATER ON THE PRESIDENT'S STIMULUS SPENDING DO NOT EXPECT A CLINTON BLITZKRIEG CAMPAIGNFINANCE REFORM THE CLINTON PLAN IS BEING CAREFULLY VETTED SO AS NOT TO UPSET HILL INCUMBENTS NATIONAL SERVICE IT HAS SHRUNK TO A PILOT PROGRAM SO AS NOT TO UPSET CONGRESSIONAL LIBERALS WHO FEAR IT WILL THREATEN UNION JOBS MEXICAN FREE TRADE TRADE REP MICKEY KANTOR SEEMS TO GET HIS NEGOTIATING ORDERS DIRECT FROM MR GEPHARDT OUR NEW LBJ IS EVEN WILLING TO CEDE HIS EXECUTIVE AUTHORITY HIS BOW TO MR BROOKS WAS MADE WITHOUT REGARD TO HOW THE SPECIALCOUNSEL LAW WAS USED TO ASSAULT THE LAST DEMOCRATIC WHITE HOUSE IT IS HUBRIS OR NAIVETE TO THINK IT WON'T BE USED AGAINST THE CLINTON TEAM EVENTUALLY MR CLINTON ALSO TOOK MICHIGAN REP JOHN DINGELL'S ADVICE TO REVIEW ALL PRIVATE FEDERAL CONTRACTINGOUT THIS REVIEW MAY EXPOSE SOME FRAUD BUT IT IS ALSO A PRIORITY OF UNIONS THAT PREFER FEDERAL PAYROLL JOBS OVER CHEAPER PRIVATE SERVICES DEMOCRATS WHO ONCE WORRIED ABOUT EXECUTIVE POWER ARE RESTING EASY BECAUSE THERE'S NOW LESS OF IT PERHAPS SUCH CONCESSIONS WILL PROVE TO BE SHEER GENIUS PERHAPS THEY WILL GUARANTEE EARLY VICTORY THAT BUILDS MOMENTUM THAT ROLLS TO BIGGER VICTORIES PERHAPS BUT IT'S ALSO POSSIBLE THAT HIS ACCOMMODATIONISM SO FAR REVEALS A POLITICAL CHARACTER THAT IS A SOFT TOUCH OR A TOUCH SOFT FOR A PRESIDENT PERHAPS CONGRESS LIKES HIM TOO MUCH AND FEARS HIM TOO LITTLE MR CLINTON HAS ALREADY BACKPEDALED ON GAYS IN THE MILITARY AFTER SAM NUNN'S RESISTANCE AND THIS WEEK HE CAVED TO WESTERN SENATORS WHO OPPOSED HIS SENSIBLE PLAN TO IMPOSE MARKETLEVEL GRAZING FEES AND MINING ROYALTIES I'M ELATED DECLARED A PRESS RELEASE FROM COLORADO SEN BEN NIGHTHORSE CAMPBELL ONE OF THE FOUR SENATORS DEMOCRATS ON THE HILL ARE INDEED ELATED AT A PRESIDENT WHO IS GIVING THEM WHAT THEY WANT MAYBE WE SHOULD SEE IF THE COUNTRY ALSO ENDS UP WANTING WHAT HE GIVES BEFORE ELEVATING MR CLINTON TO MOUNT RUSHMORE 9304020077 930402 DIVIDEND NEWS HOLLYWOOD PARK INC HOLLYWOOD PARK INC INGLEWOOD CALIF DECLARED AN INITIAL QUARTERLY DIVIDEND ON ITS CONVERTIBLE PREFERRED STOCK OF 1867 CENTS A DEPOSITARY SHARE PAYABLE MAY 15 TO DEPOSITARY SHARES OF RECORD APRIL 15 HOLLYWOOD PARK A THOROUGHBRED RACE TRACK OPERATOR SAID THAT AFTER THE INITIAL DIVIDEND THE QUARTERLY DIVIDEND RATE WILL BE 175 CENTS A DEPOSITARY SHARE 9304020076 930402 THURSDAY'S MARKETS STOCKS MIXED AS BONDS FALL DOLLAR DECLINES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED AMID SOME LACKLUSTER ECONOMIC NEWS BOND PRICES SLUMPED AND THE DOLLAR CONTINUED TO HIT POSTWORLD WAR II LOWS AGAINST THE YEN THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 433 POINTS TO 343944 STANDARD & POOR'S 500STOCK INDEX FELL 137 TO 45030 AND THE NASDAQ COMPOSITE INDEX SLID 349 TO 68664 ANALYSTS SAID INVESTORS WERE CAUTIOUSLY AWAITING TODAY'S REPORT ON MARCH EMPLOYMENT WHICH IS EXPECTED TO SHOW THAT THE ECONOMY GENERATED ABOUT 100000 NEW NONFARM JOBS LAST MONTH COMPARED WITH MORE THAN 300000 IN FEBRUARY YESTERDAY A LABOR DEPARTMENT REPORT SHOWED THAT INITIAL CLAIMS FOR UNEMPLOYMENT IN THE WEEK ENDED MARCH 27 ROSE TO THE HIGHEST LEVEL IN NEARLY FIVE MONTHS JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ PREDICTED STOCKS ARE LIKELY TO BE MORE ATTRACTIVE THAN BONDS IN THE MONTHS AHEAD HE BELIEVES THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE HIT A LONGTERM LOW IN EARLY MARCH THE US ECONOMY IS IN A PHASE THAT WILL YIELD HIGHER INFLATION WHICH WILL UNDERMINE OPTIMISM ABOUT THE BOND MARKET AND INITIALLY BE VIEWED AS POSITIVE FOR EARNINGS MR MCALINDEN SAID HE SAID THAT AS INVESTORS CONTINUE TO MOVE MONEY OUT OF LOWYIELDING CERTIFICATES OF DEPOSIT THEY WILL BYPASS THE BOND MARKET AND PURCHASE STOCKS STOCKS ARE AN INFLATION HEDGE BONDS ARE NOT MR MCALINDEN SAID OVERSEAS JAPANESE STOCK PRICES SOARED 27 BUT THE LARGE EUROPEAN MARKETS ALL FELL WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 114 TO 10220 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 232 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1043 ISSUES FELL AND 852 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST 1/2 POINT OR 5 FOR EACH 1000 FACE AMOUNT TO YIELD 696 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15915 MARKS AND 11430 YEN COMPARED WITH 16060 MARKS AND 11475 YEN WEDNESDAY 9304020075 930402 SUMMERS IS CONFIRMED FOR TREASURY POSITION WASHINGTON LAWRENCE SUMMERS FORMER CHIEF ECONOMIST OF THE WORLD BANK WAS CONFIRMED BY THE SENATE AS TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS EVEN BEFORE THE VOICE VOTE MR SUMMERS HAD BEEN SERVING AS TREASURY SECRETARY LLOYD BENTSEN'S TOP DEPUTY FOR INTERNATIONAL MATTERS INCLUDING AID TO RUSSIA AND EFFORTS TO COORDINATE ECONOMIC POLICIES AMONG THE MAJOR INDUSTRIALIZED COUNTRIES MR SUMMERS 38 YEARS OLD A WIDELY RESPECTED ECONOMIST IS ON LEAVE FROM HARVARD UNIVERSITY HE HAD BEEN A CONTENDER TO HEAD THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS BUT ENVIRONMENTALISTS ENLISTED THE HELP OF VICE PRESIDENT ALBERT GORE AND DERAILED HIS CANDIDACY ENVIRONMENTAL GROUPS HAVE ATTACKED MR SUMMERS 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 HAS DESCRIBED THE MEMO AS A MISTAKE AND SAID IT DIDN'T REFLECT HIS OR THE WORLD BANK'S VIEWS SEPARATELY THE SENATE BANKING COMMITTEE VOTED UNANIMOUSLY TO APPROVE THE NOMINATION OF EUGENE LUDWIG TO BE COMPTROLLER OF THE CURRENCY THE FULL SENATE MAY ACT ON THE APPOINTMENT TODAY 9304020074 930402 TIME WARNER INC BOOSTED LEVIN'S PAY 29 IN 1992 NEW YORK GERALD M LEVIN TIME WARNER INC'S CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT COLLECTED 1992 COMPENSATION OF 36 MILLION UP ABOUT 29 FROM 1991 ACCORDING TO THE BIG ENTERTAINMENT AND PUBLISHING COMPANY'S 1992 PROXY STATEMENT MR LEVIN RECEIVED ABOUT 11 MILLION IN SALARY AND A BONUS OF 25 MILLION IN ADDITION MR LEVIN EXERCISED OPTIONS ON 102764 SHARES FOR A PAPER PROFIT OF 21 MILLION THE COMPANY CITED SEVERAL FACTORS FOR THE INCREASE INCLUDING THE RISE IN THE COMPANY'S STOCK PRICE LAST YEAR DEBT RESTRUCTURING AND COMPLETION OF A STRATEGIC ALLIANCE WITH TOSHIBA CORP AND ITOCHU CORP FORMERLY C ITOH & CO THAT RESULTED IN A 1 BILLION INVESTMENT MOREOVER MR LEVIN THOUGH FILLING THE POST OF COCHIEF EXECUTIVE OFFICER IN 1992 SERVED AS THE COMPANY'S SOLE TOP OFFICER FOR MOST OF THE YEAR BECAUSE OF THE CANCERRELATED ILLNESS OF THE LATE STEVEN J ROSS COCHIEF EXECUTIVE AND CHAIRMAN MR LEVIN HAS SINCE BEEN NAMED TO THE COMPANY'S TOP THREE POSTS 9304020073 930402 THRIFT AGENCY TO CUT SIZE IN ITS BULK SALES OF ASSETS WASHINGTON THE RESOLUTION TRUST CORP WILL START REDUCING THE SIZE OF THE SAVINGSANDLOAN PACKAGES IT SELLS AND WILL SUBJECT LARGE ONES TO A MORE RIGOROUS REVIEW BEFORE THEY GO TO MARKET ROGER ALTMAN THE DEPUTY TREASURY SECRETARY AND ACTING CHIEF EXECUTIVE OFFICER OF THE RTC SAID HE HAS ASKED THE AGENCY'S SENIOR STAFF TO SHIFT DOWN FROM FOURTH TO THIRD GEAR AS THE RTC CONTINUES TO UNLOAD THE RAW LAND BAD LOANS AND OTHER ASSETS OF FAILED THRIFTS AS REPORTED MR ALTMAN WANTS TO ENSURE THAT MORE RIGOROUS CONTRACTING AND INTERNAL CONTROLS WON'T BE STRAINED BEFORE MAJOR NEW ASSET SALES ARE CONCLUDED THE RTC HAS TAKEN OVER 654 FAILED S&LS SINCE 1989 COVERING THEIR SAVINGS DEPOSITS AND SELLING OFF THEIR ASSETS IT HAS DISPOSED OF ASSETS WITH A BOOK VALUE OF MORE THAN 310 BILLION AND CURRENTLY HAS ABOUT 100 BILLION OF ASSETS IN ITS INVENTORY ALMOST 75 OF THAT CLASSIFIED AS HARD TO SELL 9304020072 930402 ECONOMY US PERSUADES SOUTH KOREA TO OPEN UP PHONE MARKET BUT EUROPEAN TALKS STALL BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US PRODDED SOUTH KOREA TO OPEN A BIG PART OF ITS TELECOMMUNICATIONS MARKET BUT MADE NO PROGRESS IN A SEPARATE EFFORT TO PERSUADE EUROPE TO REDUCE AIRCRAFT SUBSIDIES US TRADE REPRESENTATIVE MICKEY KANTOR SAID SOUTH KOREA'S GOVERNMENTOWNED TELEPHONE MONOPOLY KOREA TELECOM AGREED TO DROP PROVISIONS THAT HANDICAPPED AMERICAN TELEPHONE & TELEGRAPH CO FROM BIDDING ON TELEPHONE SWITCHING CONTRACTS MR KANTOR SAID THE US WAS READY TO IMPOSE TRADE SANCTIONS IF SOUTH KOREA HADN'T AGREED TO THE CHANGES WE WERE PREPARED TO PUT OUT A LIST OF RETALIATORY ITEMS TOGETHER AND IMPLEMENT THAT MR KANTOR SAID DURING A SMALL NEWS CONFERENCE HERE SOUTH KOREA AGREED TO PUBLISH ALL ITS PROCUREMENT REGULATIONS AND MAKE SURE THEY WERE MADE AVAILABLE TO ALL POTENTIAL BIDDERS AT&T PRAISED THE ACTION SAYING IT NOW EXPECTS TO COMPETE EFFECTIVELY FOR A SOUTH KOREAN GOVERNMENT PURCHASE OF DIGITAL SWITCHING EQUIPMENT IN MAY SOUTH KOREAN COMPANIES SUCH AS SAMSUNG GROUP AND GOLDSTAR CO ARE THE MAJOR COMPETITORS IN THE PROCUREMENT AT&T SAID IT EXPECTS TO WIN CONTRACTS OF CONSIDERABLY MORE THAN 30 MILLION WITH AIRCRAFT THOUGH NEGOTIATIONS WERE UNPROMISING US AND EUROPEAN COMMUNITY NEGOTIATORS COMPLETED TWO DAYS OF TALKS IN BRUSSELS WITHOUT MAKING ANY PROGRESS DESPITE REPEATED ATTACKS BY PRESIDENT CLINTON ON EUROPEAN SUBSIDIES TO AIRBUS INDUSTRIE AND COUNTERATTACKS IN EUROPE NEITHER SIDE SOUGHT TO RENEGOTIATE AN AGREEMENT THEY REACHED LAST JULY THAT LIMITS GOVERNMENT AID TO AIRCRAFT MAKERS INSTEAD US NEGOTIATORS HAVE SAID THEY WOULD PRESS THE SUBSIDY ISSUE IN SEPARATE NEGOTIATIONS UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE SCHEDULED FOR LATER THIS MONTH THE US WANTS TO LIMIT FUTURE SUBSIDIES TO AIRBUS AND ANY OTHER OTHER STATESUPPORTED AIRCRAFT MAKER US NEGOTIATORS ALSO MAY FOCUS ON AIRBUS'S USE OF SOCALLED WALKAWAY LEASES IN WHICH AIRLINES ARE ABLE TO RETURN AIRCRAFT TO MANUFACTURERS A YEAR OR SO AFTER A SALE IN THE TALKS IN BRUSSELS THE US PRESSED THE EC TO RELEASE MORE INFORMATION ABOUT AIRBUS FINANCES WE WERE SORELY DISAPPOINTED AND CONCERNED WITH THE EC'S FAILURE TO BE COMPLETELY FORTHCOMING MR KANTOR SAID EC COUNTERCHARGE FOR ITS PART THE EC SAID THE US DIDN'T PROVIDE SUFFICIENT INFORMATION ABOUT US GOVERNMENT SUPPORT FOR AIRCRAFT MAKERS THROUGH SUCH INDIRECT MEANS AS FUNDING FOR RESEARCH ON MILITARY AND NEXTGENERATION CIVILIAN AIRCRAFT THE US NEGOTIATING TEAM REJECTED THOSE CHARGES A US OFFICIAL SAID THE US RAISED THE ISSUE OF WALKAWAY LEASES DURING THE TALKS WITH THE EC BUT DIDN'T REQUEST A BAN HE ACKNOWLEDGED THAT US MANUFACTURERS HAVE USED SUCH FINANCING DEALS AS WELL IN ANOTHER TRADE MATTER THE US TURNED UP THE PRESSURE ON JAPAN TO COMPLY WITH PROMISES MADE DURING PRESIDENT BUSH'S MUCHCRITICIZED TRIP TO JAPAN LAST YEAR MR KANTOR AND COMMERCE SECRETARY RON BROWN SIGNED A LETTER LAST FRIDAY WHICH WAS DELIVERED TO YOSHIRO MORI JAPAN'S MINISTER OF INTERNATIONAL TRADE AND INDUSTRY THE LETTER SAID THEY EXPECTED JAPAN TO INCREASE IMPORTS OF US AUTO PARTS AND BOOST THE USE OF USMADE PARTS IN CARS PRODUCED BY JAPANESE FACTORIES IN THE US MESSRS BROWN AND KANTOR SAID THEY DOUBTED THAT JAPAN WOULD MEET THE TARGETS SET FORTH LAST YEAR AND ASKED MR MORI TO ACCELERATE JAPAN'S EFFORTS 9304020071 930402 BUSINESS BRIEF AMERICAN MEDICAL HOLDINGS INC COMPANY TO CLOSE BRANCH IN HOUSTON CUT STAFF BY 60 AMERICAN MEDICAL HOLDINGS INC SAID IT PLANS TO CLOSE ITS HOUSTON OFFICE AND LAY OFF ABOUT 60 PEOPLE THE DALLASBASED HEALTHCARE COMPANY SAID THE MOVES EXPECTED TO BE COMPLETED BY AUG 31 WILL RESULT IN A PRETAX CHARGE OF BETWEEN 35 MILLION AND 6 MILLION IN FISCAL 1993 FOR THE FISCAL YEAR ENDED AUG 31 1992 AMERICAN MEDICAL REPORTED NET INCOME OF 996 MILLION OR 130 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING AMERICAN MEDICAL WAS QUOTED AT 1125 DOWN 25 CENTS THE HOUSTON OFFICE WHICH HANDLES AMERICAN MEDICAL'S ACCOUNTING OPERATIONS EMPLOYS ABOUT 200 PEOPLE ONCE THE CUTBACKS ARE COMPLETE AND REMAINING WORKERS ARE MOVED TO DALLAS THE COMPANY SAID ITS DALLAS HEADQUARTERS STAFF WILL MORE THAN TRIPLE IN SIZE TO ABOUT 250 PEOPLE 9304020070 930402 INTERNATIONAL OKI ELECTRIC INDUSTRY PLANS TO SHUT TOKYO PLANT IN '94 TOKYO OKI ELECTRIC INDUSTRY CO SAID YESTERDAY IT WOULD CLOSE A PLANT IN THE TOKYO AREA NEXT YEAR MAKING IT ONE OF THE FIRST MAJOR JAPANESE ELECTRONICS COMPANIES TO SHUT A FACTORY IN THE INDUSTRY'S CURRENT DOWNTURN A SPOKESMAN SAID THE COMPANY ALSO PLANS TO CLOSE SOME PRODUCTION LINES IN 1995 IN TWO OTHER PLANTS THAT MAKE COMMUNICATIONS EQUIPMENT AND SEMICONDUCTORS AS PART OF AN OVERALL RESTRUCTURING THE FACTORY TARGETED FOR CLOSURE EMPLOYS 300 WORKERS THE SPOKESMAN SAID OKI ELECTRIC DOESN'T KNOW WHAT IT WILL DO WITH THE DISPLACED WORKERS THE SPOKESMAN REFUSED TO SAY HOW MANY WORKERS MIGHT BE AFFECTED AT THE OTHER PLANTS AND DECLINED TO COMMENT ON A REPORT FRIDAY THAT SAID THE RESTRUCTURING WOULD AFFECT 1500 EMPLOYEES IN ITS 1991 FISCAL YEAR WHICH ENDED ON MARCH 31 1992 THE COMPANY POSTED A 128 BILLION YEN 112 MILLION PRETAX PROFIT ON SALES OF 58559 BILLION YEN 9304020069 930402 US ACTIVISTS TRY TO PUT HURDLES IN WAY OF BEIJING'S BID TO HOST 2000 OLYMPICS BY LUKE CYPHERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH BEIJING EMERGING AS A TOP CONTENDER TO HOST THE 2000 SUMMER OLYMPIC GAMES US HUMANRIGHTS ACTIVISTS ARE GEARING UP TO PREVENT A CHINESE VICTORY WE WOULD BE APPALLED APPALLED IF THEY SERIOUSLY CONSIDER AWARDING SOMETHING LIKE THIS TO BEIJING SAYS RACHEL LOSTUMBO OF THE WASHINGTONBASED INTERNATIONAL CAMPAIGN FOR TIBET WE WILL BE VERY ACTIVE ON IT IN THE NEXT FEW MONTHS THE INTERNATIONAL OLYMPIC COMMITTEE WILL CHOOSE THE SITE FOR THE GAMES SEPT 23 IN MONTE CARLO AND LONDON ODDSMAKERS RATE BEIJING'S CHANCES SECOND ONLY TO SYDNEY'S IN THE SIXCITY COMPETITION FOR HOST RIGHTS OTHER BIDDERS ARE BERLIN BRASILIA ISTANBUL AND MANCHESTER ENGLAND BEIJING HAS SPARED NO EXPENSE TO IMPRESS THE IOC LOBBYING DELEGATES AND DRESSING UP THE CITY DURING THE VISIT LAST MONTH OF THE COMMITTEE'S ENQUIRY COMMISSION THE CHINESE GOVERNMENT EVEN DONATED A LIFESIZE 2200YEAROLD TERRACOTTA SOLDIER TO THE IOC'S MUSEUM IN LAUSANNE SWITZERLAND IN ADDITION CHINESE AUTHORITIES RELEASED SEVERAL PROMINENT POLITICAL PRISONERS AHEAD OF THE COMMISSION'S VISIT US HUMANRIGHTS GROUPS WORRY THAT SUCH GESTURES WILL SWAY THE 91 IOC DELEGATES WHO WILL VOTE ON THE HOST CITY THE ACTIVISTS SEE NO SHORTAGE OF REASONS TO DISQUALIFY BEIJING THE 1989 KILLINGS OF PRODEMOCRACY DEMONSTRATORS AT TIANANMEN SQUARE THE CONTINUED DETENTION OF DISSIDENTS ALLEGED USE OF PRISON LABOR BY STATEOWNED COMPANIES SUPPRESSION OF RELIGION AND FREE SPEECH BEIJING'S ALLEGED VIOLATIONS OF INTERNATIONAL ARMSCONTROL AGREEMENTS AND THE COUNTRY'S 44YEAR OCCUPATION OF TIBET MS LOSTUMBO'S GROUP ALREADY HAS BEGUN PROTESTING BEIJING'S BID A DOZEN OR SO PROTIBETAN ACTIVISTS DEMONSTRATED IN ATLANTA LAST MONTH OUTSIDE A MEETING OF THE IOC'S EXECUTIVE BOARD LODI GYARI PRESIDENT OF THE CAMPAIGN FOR TIBET SENT A LETTER TO IOC PRESIDENT JUAN ANTONIO SAMARANCH WHICH READ IN PART JUST AS CHANCELLOR HITLER WAS ABLE TO FLAUNT THE 1936 OLYMPICS AS JUSTIFICATION OF ACCEPTANCE BY THE INTERNATIONAL COMMUNITY WE MUST NOT GIVE THIS SAME TOOL TO THE BUTCHERS' OF BEIJING IN THE COMING MONTHS MS LOSTUMBO SAID WE WILL BE LOBBYING OUR FRIENDS IN CONGRESS AND CONTACTING THE US DELEGATE TO THE IOC ANITA DEFRANTZ WE HOPE THAT WE COULD STRONGARM THE US REPRESENTATIVE INTO VOTING AGAINST BEIJING MS LOSTUMBO SAID MS DEFRANTZ MAINTAINS THAT SHE WON'T BOW TO PRESSURE ONE WAY OR ANOTHER I DOUBT THAT ANYBODY WOULD BE ABLE TO LOBBY ME SHE SAID IT'S A VERY PERSONAL DECISION THAT EACH IOC MEMBER WILL HAVE TO MAKE WE DON'T TALK ABOUT IT WITH THE END OF THE COLD WAR ACTIVISTS SEE AN OPPORTUNITY TO PUT HUMAN RIGHTS ON THE IOC AGENDA IT'S WAY PAST DUE FOR THE IOC TO FACTOR HUMAN RIGHTS INTO ITS SITE SELECTIONS SAYS RICHARD DICKER A SPOKESMAN FOR USBASED HUMAN RIGHTS WATCH WE WANT TO CHANGE THE ATTITUDE THAT THIS IS SPORTS AND IT HAS NOTHING TO DO WITH POLITICS GROUPS SUCH AS MR DICKER'S VIEW THE YEAR 2000 AS A SYMBOLIC TIME TO SEND AN INTERNATIONAL MESSAGE ABOUT RESPECT FOR CIVIL LIBERTIES AND FREEDOM FROM OPPRESSION ROBERT L BERNSTEIN CHAIRMAN OF HUMAN RIGHTS WATCH WROTE LETTERS TO THE IOC AND THE US OLYMPIC COMMITTEE EXPRESSING CONCERN THAT CHINA TURKEY AND BRAZIL WHICH ALL HAVE HISTORIES OF HUMANRIGHTS ABUSES ARE IN THE RUNNING HOLDING THE OLYMPICS IN A COUNTRY KNOWN FOR IMPRISONMENT FOR THE MERE EXPRESSION OF IDEAS FLIES IN THE FACE OF THE OLYMPIC SPIRIT MR BERNSTEIN'S LETTER SAID MR DICKER ADDS THAT DURING THE IOC ENQUIRY COMMITTEE'S VISIT THE MAYOR OF BEIJING ASSURED COMMITTEE MEMBERS THAT THERE WOULD BE NO OPPOSITION TO THE GAMES IN EFFECT BOASTING THAT HE WOULD REPRESS FREEDOM OF SPEECH STILL MR DICKER SAYS HIS ORGANIZATION ISN'T SINGLING OUT BEIJING THE BETTER APPROACH IS TO TRY TO CONVINCE THE IOC TO MAKE HUMAN RIGHTS AN ACROSSTHEBOARD ISSUE APPLICABLE TO ALL COUNTRIES HE SAYS ONE OBSTACLE TO THE ACTIVISTS' EFFORTS IS THAT FEW AMERICANS EVEN IN THE HUMANRIGHTS COMMUNITY HAVE GIVEN THE ISSUE MUCH THOUGHT UNTIL RECENTLY MR DICKER SAYS THE US SPORTS PRESS HAS WRITTEN LITTLE ABOUT THE ISSUE A CONGRESSIONAL AIDE SAYS THE OLYMPICS HAVEN'T BEEN ON ANYBODY'S FRONT BURNER IN WASHINGTON THE CONGRESSIONAL OLYMPICS CAUCUS TAKES NO POSITION ON BEIJING'S FITNESS AS A HOST ESCHEWING POLITICAL QUESTIONS FOR CEREMONIES THAT HONOR US ATHLETES ACCORDING TO AN AIDE TO A CAUCUS MEMBER THE USOC PREPARING TO HOST THE 1996 SUMMER OLYMPICS IN ATLANTA ALSO IS STEERING CLEAR OF CONFRONTATION IT'S OUR POSITION THAT WE DON'T REALLY CARE WHAT HAPPENS WITH OTHER COUNTRIES' BIDS SAYS HEATHER LINHART A USOC STAFF MEMBER EVEN SOME POLITICIANS INTENT ON PROMOTING HUMAN RIGHTS IN CHINA EXPRESS AMBIVALENCE ABOUT BEIJING'S BID CONGRESSMAN JOHN PORTER AN ILLINOIS REPUBLICAN WHO SUPPORTS A TOUGH LINE AGAINST THE CHINESE GOVERNMENT SAYS A POTENTIAL BEIJING OLYMPICS CAN BE VIEWED TWO WAYS AS A REWARD THAT SHOULDN'T BE GIVEN TO SOCIETIES THAT HAVEN'T EARNED IT OR AS AN EVENT THAT MIGHT HELP OPEN UP CHINA FURTHER CHINA COULD REAP A PUBLICRELATIONS AND FINANCIAL BONANZA FROM THE OLYMPICS SAYS MR DICKER ADDING THAT BEIJING SEEMS INTENT ON RECLAIMING INTERNATIONAL STATURE LOST AFTER TIANANMEN SQUARE AND USHERING IN THE MILLENNIUM BY FLEXING ITS ECONOMIC MUSCLE TO THAT END THE CITY HAS LAVISHED ATTENTION ON IOC DELEGATES POINTING OUT NEWLY BUILT ROADS AND ATHLETIC FACILITIES THAT HAD A SUCCESSFUL TEST RUN DURING THE 1990 ASIAN GAMES THE CHINESE ALSO ARGUE THAT IT'S ONLY FAIR THAT THEIR NATION WITH ONEFIFTH OF THE WORLD'S POPULATION HAVE ITS CHANCE TO HOST THE OLYMPICS 9304020068 930402 WORLD MARKETS TOKYO PRICES RALLY ON STIMULUS OUTLOOK STOCKS SLIP IN LONDON FALL IN FRANKFURT AS RATES HOLD A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES IN TOKYO SURGED 27 THURSDAY THE FIRST DAY OF JAPAN'S NEW FISCAL YEAR PACED PARTLY BY GOVERNMENTSPENDING DEVELOPMENTS LONDON SHARES SOFTENED AS FUTURESLED SELLING ERASED EARLY GAINS FRANKFURT STOCKS DROPPED ON DISAPPOINTMENT THAT GERMANY LEFT KEY INTEREST RATES UNCHANGED IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUNGED 37171 POINTS WEDNESDAY SOARED 50764 TO 1909909 THE HIGHEST CLOSE SINCE MARCH 31 1992 WHEN THE GAUGE STOOD AT 1934595 ON FRIDAY THE NIKKEI INDEX SURGED ANOTHER 50527 POINTS TO CLOSE THE MORNING SESSION AT 1960436 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A HEAVY 620 MILLION SHARES COMPARED WITH 6971 MILLION SHARES ON WEDNESDAY GAINERS SWAMPED LOSERS 663377 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 2067 POINTS WEDNESDAY JUMPED 3932 POINTS OR 28 TO 147119 ITS HIGHEST CLOSE SINCE THE MARCH 12 1992 FINISH OF 147221 TOKYO BUYING CENTERED ON DOMESTICORIENTED ISSUES BECAUSE OF WIDESPREAD ANTICIPATION OF A HUGE JAPANESE GOVERNMENTSPENDING PACKAGE TO STIMULATE THE ECONOMY AND THE YEN'S HOLDING AT NEARRECORD LEVELS IN RELATION TO THE DOLLAR THE JAPANESE CURRENCY LOGGED A POSTWORLD WAR II HIGH OF 11435 TO THE DOLLAR IN TOKYO TRADING AND WOUND UP THE DAY AT 11454 STRENGTHENING FROM 11535 LATE WEDNESDAY THE YEN'S SHOW OF STRENGTH DIDN'T SHAKE CONFIDENCE IN THE STOCK MARKET THOUGH IT HASTENED A REFOCUSING OF PORTFOLIOS TOWARD JAPANESE AND IMPORTORIENTED SHARES AND AWAY FROM EXPORTORIENTED BLUE CHIPS OVERALL THE YEN'S FIRMNESS IS DISCOUNTED IN STOCK PRICES THE BULK OF TOKYO STOCKS' GAINS CAME IN THE SESSION'S FINAL HOUR FOLLOWING NEWS REPORTS THAT PRIME MINISTER KIICHI MIYAZAWA PROMISED BY MIDMONTH AN OUTLINE OF A RECORD FISCALSTIMULUS PLAN TOPPING THE 107 TRILLIONYEN 9316 BILLION PUMP PRIMER OF LAST AUGUST THE NIKKEI MOVED BETWEEN 1852665 AND 1913583 DURING THE SESSION SHARE PRICES SOFTENED AS STOCKINDEX FUTURES GAVE WAY IN THE EARLY MORNING BEFORE REBOUNDING AND MOVING HIGHER FOR THE REST OF THE DAY THE EMERGENCE OF STRONG SUPPORT BUYING FOR THE NIKKEI AT 18500 PUT TO REST FEARS THAT THE RALLY THAT SPURRED THE INDEX FROM BELOW 17000 IN EARLY MARCH WAS SPUTTERING PUBLIC PENSION FUNDS WERE ACTIVE BUYERS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED DOWN 03 POINT TO 28784 THE FT 30STOCK INDEX FELL 24 POINTS TO 22232 VOLUME WAS 6767 MILLION SHARES COMPARED WITH 8216 MILLION SHARES A DAY EARLIER AFTER DROPPING AT THE OPENING LONDON PRICES REVERSED AND HEADED UPWARD AS STRONGERTHANEXPECTED CORPORATE RESULTS FANNED HOPES OF IMPROVED EARNINGS FOR 1993 AS BRITAIN'S ECONOMY EMERGES FROM RECESSION AFTER HOLDING IN POSITIVE TERRITORY FOR MUCH OF THE MORNING THE MARKET ATTEMPTED AN EARLYAFTERNOON RALLY AFTER US BOND PRICES ROSE FOLLOWING AN UNEXPECTEDLY LARGE INCREASE IN INITIAL CLAIMS FOR STATE UNEMPLOYMENT BRITISH INVESTORS FIGURED THE NEWS MIGHT REKINDLE HOPES FOR A CUT IN US INTEREST RATES AND THUS BOOST US SHARE PRICES BUT THE LATEAFTERNOON DECLINE IN LONDON STOCKINDEX FUTURES MARKET PULLED EQUITY PRICES LOWER IN ITS WAKE THE DECISION BY THE GERMAN CENTRAL BANK'S POLICYMAKING COUNCIL TO LEAVE KEY GERMAN INTEREST RATES UNCHANGED HAD BEEN WIDELY EXPECTED IN LONDON WHERE IT HAD SCANT EFFECT ON SHARE PRICES BUT IN FRANKFURT THE DAX 30STOCK INDEX GAVE UP 1263 POINTS TO 167158 WITH ONLY TWO STOCKS IN THE INDEX ADVANCING AND 27 DECLINING AFTER THE GERMAN BUNDESBANK SAID IT WAS LEAVING INTEREST RATES UNCHANGED THE CENTRAL BANK DOMINATED THE MARKET'S FOCUS AMID QUIET LOWVOLUME TRADING INVESTORS VIEW INTERESTRATE CUTS AS POSITIVE FOR SHARE PRICES ON THE EXPECTATION THAT LOWER RATES WILL PERK UP ECONOMIC GROWTH PARIS STOCK PRICES THUDDED 13 PARTLY ON WEAKNESS IN THE OUTLOOK FOR SOME COMPANIES' PERFORMANCE AMSTERDAM SHARES FELL PRESSURED BY THE GERMAN RATE INACTION AND A WEAKER DOLLAR MADRID EQUITIES DROPPED SHARPLY AS ENTHUSIASM WAS DAMPED BY THE GERMAN DECISION AGAINST CUTTING RATES AND BY POOR DATA ON SPAIN'S INDUSTRIAL PODUCTION FOR JANUARY BUT MILAN PRICES FINISHED HIGHER LED BY THE CONSTRUCTION AND CEMENT SECTORS WHICH WERE BOOSTED BY REPORTS THE ITALIAN GOVERNMENT WOULD FREE PUBLIC BUILDING CONTRACTS FROZEN BY INVESTIGATIONS OF ALLEGED CORRUPTION STOCKHOLM SHARES ADVANCED ON STRONG FOREIGN BUYING SYDNEY STOCKS REBOUNDED AS FIRM GOLD PRICES AND A SURGING TOKYO STOCK MARKET OFFSET MORNING WEAKNESS CAUSED BY WALL STREET'S DECLINE WEDNESDAY HONG KONG SHARES EDGED HIGHER ON WARMER COMMENTS IN CHINA ABOUT THE FUTURE OF SINOBRITISH RELATIONS THOUGH LITTLE POLITICAL MOVEMENT ON HONG KONG DEMOCRATIC REFORM IS EXPECTED UNTIL AFTER THE EASTER HOLIDAY TAIPEI STOCKS FELL AS HEAVY PROFITTAKING IN THE FINAL HALFHOUR ERODED EARLY GAINS SEOUL SHARES DECLINED PARTLY BECAUSE OF A CONTINUING GOVERNMENT REFORM PROGRAM AMONG CORPORATE DEVELOPMENTS IN FRANKFURT DRESDNER BANK FELL 220 MARKS TO 40150 MARKS 24977 CONSOLIDATED EARNINGS FOR 1992 JUMPED 48 TO 966 MILLION MARKS 6009 MILLION FROM A YEAR EARLIER AND 466 MILLION MARKS WERE TRANSFERRED TO DISCLOSED RESERVES PRETAX OPERATING PROFIT BEFORE SPECIAL ITEMS ROSE 13 TO 281 BILLION MARKS BUT THE DIVIDEND WAS LEFT UNCHANGED AT 12 MARKS A SHARE TO BUILD RESERVES AGAINST HIGHER PROVISIONS FOR LOSSES ON BAD LOANS AND DRESDNER WARNED OF GERMANY'S ECONOMIC SLOWDOWN ON EARNINGS GROWTH THIS YEAR IN PARIS SAINTGOBAIN SLUMPED 35 FRENCH FRANCS OR 67 TO 498 FRANCS 9121 THE GLASS AND CONSTRUCTION MATERIALS COMPANY CITING A COLLAPSE IN DEMAND PREDICTED 1993 PROFIT WILL FALL AN UNSPECIFIED AMOUNT FROM 1992 WHEN CONSOLIDATED EARNINGS DROPPED 53 TO 238 BILLION FRANCS 4359 MILLION IN AMSTERDAM AEGON FELL 140 GUILDERS TO 8740 GUILDERS 4836 IN ADVANCE OF AN EARNINGS REPORT IN LINE WITH EXPECTATIONS THE INSURANCE COMPANY'S 1992 PROFIT GREW 99 TO 909 MILLION GUILDERS 5029 MILLION BUOYED BY A SHARP EARNINGS IMPROVEMENT IN US OPERATIONS ALSO AS EXPECTED AEGON INCREASED THE DIVIDEND 2 TO 375 GUILDERS A SHARE ADJUSTED FOR A 2FOR1 SPLIT IN MID1992 IN ZURICH ROCHE HOLDING DROPPED 10 SWISS FRANCS TO 6590 FRANCS 442519 THE PHARMACEUTICAL COMPANY'S 1992 GROUP PROFIT CLIMBED 29 TO 192 BILLION FRANCS 129 BILLION PROMPTING THE BOARD TO PROPOSE A 32 DIVIDEND INCREASE TO 37 FRANCS A SHARE BUT AS THE MARKET HAD EXPECTED A MUCH LARGER INCREASE IN EARNINGS THE STOCK PRICE SLUMPED BEFORE RECOUPING MOST OF THE DECLINE 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 9304020067 930402 HELP THE RUSSIANS HELP THEMSELVES BY RICHARD LAYARD MOSCOW AS PRESIDENT CLINTON PREPARES TO MEET WITH BORIS YELTSIN THIS WEEKEND HE MUST REALIZE THAT IF THE WEST CAN EVER AFFECT EVENTS IN RUSSIA NOW IS THE TIME THE RUSSIAN GOVERNMENT HAS A CLEAR PLAN FOR GETTING THE ECONOMY UNDER CONTROL BUT THE DARK FORCES OF ECONOMIC REACTION AND DANGEROUS NATIONALISM ARE AGAINST IT IF WE HELP THE GOVERNMENT SUCCEED WE CAN PAVE THE WAY TO PROSPERITY AND PEACE BUT IF WE FAIL TO AID THE REFORM THE PROSPECT IS BLEAK INDEED MANY POLITICAL CRISES CANNOT BE HELPED BY MONEY THIS ONE CAN BE ALTHOUGH THE TASK WILL TAKE MORE THAN THE 1 BILLION A YEAR THAT EARLY REPORTS INDICATE PRESIDENT CLINTON WILL OFFER THIS WEEKEND MR YELTSIN HAS APPOINTED AS FINANCE MINISTER AND DEPUTY PRIME MINISTER A MAN UNIQUELY QUALIFIED TO SORT OUT THE RUSSIAN ECONOMY BORIS FYODOROV HAS BOTH THE TOUGHNESS AND EXPERIENCE NEEDED TO DRIVE THROUGH A STABILIZATION POLICY HE ALSO HAS THE FOREIGN WORK EXPERIENCE IN THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT EBRD AND WORLD BANK NEEDED TO NEGOTIATE AN EFFECTIVE AID PACKAGE HIS DETAILED PROPOSALS FOR DISINFLATION AND REFORM ARE THE BASIS OF THE GOVERNMENT'S CURRENT PROGRAM BUT MANY NOW QUESTION WHETHER THERE IS ANY CHANCE THAT RUSSIA WILL BE ABLE TO CARRY THROUGH A REFORM PROGRAM AFTER ALL THEY ASK HASN'T THE REFORM ALREADY FAILED NOT SO IN ONE YEAR RUSSIA HAS MOVED MORE THAN HALF THE WAY TO A MARKET ECONOMY BY BOLDLY FREEING ALMOST ALL PRICES THE RUSSIANS HAVE LARGELY ELIMINATED THE QUEUES IN THE SHOPS AND MORE IMPORTANT STILL INTRODUCED REGULAR BUSINESS RELATIONS BETWEEN ENTERPRISES MOST TRADE IS NO LONGER DIRECTED FROM THE CENTER BUT BASED MAINLY ON FREELY DETERMINED CONTRACTS BETWEEN BUSINESSES RUSSIA IS ALSO MOVING AT BREAKNECK SPEED TOWARD PRIVATE OWNERSHIP NEARLY HALF OF SMALL BUSINESSES ARE NOW PRIVATE AND THERE ARE MORE THAN 200000 PRIVATE FARMS NOT INCLUDING PRIVATE ALLOTMENTS HALF OF THE GIANT STATE ENTERPRISES WILL BE PRIVATIZED THIS YEAR AND 99 OF RUSSIA'S CITIZENS HAVE COLLECTED THE VOUCHERS THEY WILL USE IN THE AUCTIONS SO THERE HAS BEEN MUCH SOLID ACHIEVEMENT BUT MAJOR MUDDLES AND PROBLEMS REMAIN ABOVE ALL INFLATION WHICH IS STILL RUNNING AT 20 A MONTH THAT IS THE PROBLEM THAT MR FYODOROV NOW WANTS TO TACKLE AND HIS PROGRAM CANNOT BE CARRIED OUT WITHOUT WESTERN SUPPORT TO SEE WHY IT IS NECESSARY TO UNDERSTAND JUST HOW MASSIVE A SQUEEZE WILL BE NEEDED TO CONTROL INFLATION EACH MONTH LAST YEAR THE CENTRAL BANK PRINTED MONEY EQUAL TO ROUGHLY 40 OF THE NATIONAL INCOME 5 FOR GOVERNMENT FINANCING 25 FOR ENTERPRISES AND 10 FOR THE NONRUSSIAN MEMBERS OF THE COMMONWEALTH OF INDEPENDENT STATES THE GOVERNMENT HAS NOW PLEDGED TO REDUCE INFLATION TO 5 A MONTH BY CHRISTMAS THIS MEANS CUTTING THE PRINTING OF MONEY TO UNDER 10 OF NATIONAL INCOME THE FIRST SECTOR TO FEEL THE PAIN WILL BE THE OTHER MEMBERS OF THE CIS BUT THE GOVERNMENT WILL ALSO HAVE TO CUT DRASTICALLY THE RUBLES PRINTED TO FINANCE THE BUDGET AND THE ENTERPRISES THE PROBLEM HOWEVER IS THAT THE RUSSIAN QUALITY OF LIFE IS ALREADY VERY POOR NEARLY HALF OF RUSSIAN HOSPITALS HAVE NO XRAY MACHINES AND THERE IS NO MONEY FOR SCHOOL TEXTBOOKS OR FOR RETRAINING THE UNEMPLOYED SO CUTTING THE BUDGET FURTHER WOULD HAVE DESPERATE EFFECTS ON THE PEOPLE REDUCING THE CHANCES OF A GOOD POLITICAL OUTCOME MANY BUSINESSES HAVE BEEN BORROWING ONLY BECAUSE IT WAS TOO EASY AND THEY HAVE SQUANDERED THEIR MONEY ON WAGES RATHER THAN FOCUSING ON RESTRUCTURING WHICH HAS ADDED TO THE INFLATIONARY SPIRAL OBVIOUSLY FUNDING THAT PERPETUATES OBSOLETE PRODUCTION OF UNWANTED GOODS MUST BE REDUCED BUT THERE MUST AT THE SAME TIME BE SOME MONEY TO PROMOTE NEW DEVELOPMENTS EITHER NEW ENTERPRISES OR NEW PRODUCTION IN OLD ENTERPRISES WITHOUT FUNDING FOR SUCH DEVELOPMENTS THERE WILL BE AN ECONOMIC AND POLITICAL CATASTROPHE RUSSIANS WILL NOT ACCEPT A SITUATION WHERE PEOPLE ARE LAID OFF JUST BECAUSE THERE IS NO MONEY FOR BUSINESS OPPORTUNITIES SO SOME MONEY FOR GOVERNMENT AND ENTERPRISES HAS TO COME FROM ABROAD NOT IN RUBLES BUT IN DOLLARS MOST OF WHICH WILL BE IN LOANS THIS WILL NOT BE A MATTER OF THE WEST SIMPLY GIVING RUSSIA MONEY RUSSIA HAS NEVER SUGGESTED ANY CANCELLATION OF DEBT IT HAS HUGE MINERAL WEALTH AND A HIGHLY EDUCATED POPULATION THE NOVY URENGOY GAS FIELD ALONE IS WORTH 1 TRILLION RUSSIA'S POTENTIAL INCOME IS SO FAR ABOVE ITS CURRENT INCOME THAT IT SHOULD BE ALLOWED TO BORROW NOW TO ACHIEVE THAT POTENTIAL THEN IT CAN REPAY BUT RUSSIA CANNOT CURRENTLY SERVICE ITS DEBT EXCEPT BY TOKEN PAYMENTS RUSSIAN IMPORTS ARE NOW ONLY 40 OF WHAT THEY WERE IN 1990 MANY RUSSIAN ENTERPRISES ARE PRODUCING BELOW CAPACITY SIMPLY BECAUSE FOREIGN EXCHANGE IS SO SCARCE AND THUS SO EXPENSIVE SO A WESTERN AID PACKAGE IS NEEDED THAT INCLUDES AT LEAST 15 BILLION A YEAR THAT CAN BE SPENT ON IMPORTS THE PACKAGE SHOULD INCLUDE AN ENTERPRISE FUND FOR LENDING TO RUSSIAN ENTERPRISES ON THE CONDITION THAT THEY EXECUTE SENSIBLE BUSINESS PLANS AS WELL AS BUDGETARY SUPPORT A STABILIZATION FUND AND DEBT RELIEF FIFTEEN BILLION DOLLARS SEEMS LIKE A LOT OF MONEY BUT AT 100 A HEAD IT IS ABOUT THE STANDARD ASSISTANCE FOR COUNTRIES IN SIMILAR SITUATIONS IF THINGS GO BADLY RUSSIA COULD ONCE AGAIN THREATEN US WITH NUCLEAR WEAPONS OR SELL THEM TO THE WHOLE WORLD THUS THE CASE FOR AID IS SURELY COMPELLING BUT CRITICS FIND MANY OBJECTIONS FIRST PEOPLE SAY IT WILL BE MONEY DOWN THE DRAIN THIS IS SIMPLY NOT SO THE MONEY SHOULD BE OFFERED ON CERTAIN CONDITIONS AND PAID OUT STAGE BY STAGE ONLY IF THE CONDITIONS ARE SATISFIED AID WAS OFFERED TO POLAND AT THE BEGINNING OF ITS REFORM PROCESS WHEN INFLATION WAS ABOUT 25 A MONTH THE WEST SHOULD DO THE SAME FOR RUSSIA SECOND PEOPLE ARGUE RUSSIANS HAVE MANY DOLLARS ALREADY EITHER IN RUSSIA OR IN THE WEST SINCE THESE COULD BE USED TO FINANCE IMPORTS WHY LEND DOLLARS TO RUSSIA THE ANSWER IS THAT THOSE DOLLARS CAN BE MOBILIZED ONLY AFTER THE STABILIZATION HAS BEEN SUCCESSFUL PEOPLE ALSO WORRY THAT WESTERN HELP COULD BE COUNTERPRODUCTIVE THAT IS FOR BORIS YELTSIN TO DECIDE IN HIS VIEW WESTERN AID IS ESSENTIAL AND HE HAS ASKED FOR IT LOUD AND CLEAR FOR THE PAST 15 MONTHS FINALLY MOST WESTERN GOVERNMENTS HAVE GENUINE BUDGETARY PROBLEMS THIS IS REFLECTED IN THE SIZE OF THE PACKAGE THAT PRESIDENT CLINTON IS SUPPOSED TO BE OFFERING IN VANCOUVER SO THE MAIN SUPPORT SHOULD COME FROM THE INTERNATIONAL LENDING AGENCIES WHICH ARE WILLING TO PROVIDE FUNDS IF THEY ARE CONVINCED THE TIME IS RIPE AND THAT IS THE KEY POINT THERE IS NOW A GENUINE WINDOW OF OPPORTUNITY IF THE WEST CONTINUES TO WAIT UNTIL IT IS CERTAIN THAT RUSSIA IS READY IT COULD WAIT FOREVER A MORE STATESMANLIKE APPROACH IS SURELY THIS MAKE A BOLD OFFER MAKE IT CONDITIONAL AND MAKE IT SOON MR LAYARD A PROFESSOR AT THE LONDON SCHOOL OF ECONOMICS IS AN ADVISER TO THE RUSSIAN GOVERNMENT AND COEDITOR OF ITS PUBLICATION RUSSIAN ECONOMIC TRENDS 9304020066 930402 AMERICAN AIR SET TO LAY OFF 900 THIS YEAR BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMR CORP SAID IT WILL FURLOUGH 500 PILOTS AND 400 MECHANICS LATER THIS YEAR IN ITS CONTINUING QUEST TO ELIMINATE UNPROFITABLE OPERATIONS AND CUT ITS COSTS THE ANNOUNCEMENT BY THE PARENT OF AMERICAN AIRLINES WAS EXPECTED AS THE COMPANY SAID TWO WEEKS AGO THAT IT WAS GROUNDING 25 WIDEBODY JETS THE LAYOFFS WOULD BE THE FIRST AT AMERICAN SINCE THE EARLY 1980S AND THE ANNOUNCEMENT COMES JUST DAYS AFTER DELTA AIR LINES SAID IT PLANNED TO FURLOUGH 600 PILOTS LATER THIS YEAR WHAT YOU'RE SEEING IS CARRIERS' PROJECTIONS FOR THEIR GROWTH AND HIRING NEEDS SAID JERALD GLASS A LABORRELATIONS SPECIALIST BASED IN WASHINGTON DC EVEN THESE CARRIERS DON'T SEE GROWTH IN THE FORESEEABLE FUTURE REGARDLESS OF IF THEY RETURN TO PROFITABILITY YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AMR COMMON CLOSED AT 64875 OFF 125 CENTS OF VOLUME OF 527300 SHARES IT'S UNCLEAR HOW MANY FLIGHT ATTENDANTS IF ANY MIGHT BE AFFECTED ALTHOUGH IT REQUIRES ABOUT 1300 TO STAFF THE 25 DC10S AMERICAN SAID ATTRITION AND LEAVES OF ABSENCE COULD ELIMINATE THE NEED FOR LAYOFFS IN THAT CATEGORY THE COMPANY'S FLIGHT ATTENDANT UNION TOLD MEMBERS THAT IT HAS BEEN TOLD A DECISION ON FLIGHT ATTENDANT LAYOFFS HASN'T YET BEEN MADE THE FURLOUGH ANNOUNCEMENT WAS MADE BY ROBERT L CRANDALL CHAIRMAN AT A MEETING WITH EMPLOYEES IN CHICAGO WEDNESDAY NIGHT IT COMES AFTER ALMOST A DECADELONG GROWTH SPURT AT AMERICAN THAT PROPELLED THE COMPANY INTO THE NATION'S LARGEST CARRIER DOUBLING THE NUMBER OF EMPLOYEES AND TRIPLING THE SIZE OF ITS FLEET WE HAD A NINEYEAR ROLL NOBODY THOUGHT TOO MUCH ABOUT FURLOUGHS SAID RICH LAVOY PRESIDENT OF THE ALLIED PILOTS ASSOCIATION THE PILOTS UNION HAS HASTILY REACTIVATED A FURLOUGH COMMITTEE THAT HAS BEEN DORMANT FOR YEARS AMR BASED IN FORT WORTH TEXAS RECENTLY SUPPLANTED ITS 1980S GROWTH STRATEGY WITH A NEW PLAN THAT CALLS FOR SCRAPPING UNPROFITABLE ROUTES AND OPERATIONS BEEFING UP THE PROFITABLE ONES AND EMPHASIZING ITS RELATED NONAIRLINE OPERATIONS AT AMERICAN SPECIFICALLY IT IS CUTTING BACK CAPITAL SPENDING FOR NEW JETS HAS GROUNDED THE 25 DC10S AND WILL RETIRE 28 BOEING 727S BY YEAR'S END THE FURLOUGHS APPARENTLY FACTOR IN BOTH THE WIDEBODY GROUNDINGS AND 727 RETIREMENTS BUT MAKING SUCH A SHIFT CLEARLY REQUIRES READJUSTMENT AT A COMPANY THAT'S BEEN GROWING FOR SO LONG UNDER FURLOUGH RULES IN EFFECT AT AMERICAN AND AT MOST AIRLINES EMPLOYEES RETAIN THEIR SENIORITY NUMBERS AND ARE RECALLED TO THEIR JOBS AS THE COMPANY BEGINS GROWING AGAIN OR FILLS SLOTS LEFT OPEN BY RETIREMENT MANY PILOTS FURLOUGHED BY AMERICAN IN 1979 FOR EXAMPLE WERE RECALLED IN 1984 FURLOUGHING IS THE NORMAL COURSE OF BUSINESS IN THE AIRLINE BUSINESS REGRETTABLEY SAID KIT DARBY PRESIDENT OF AVIATION INFORMATION RESOURCES INC AN AVIATION CONSULTING FIRM THE PLANNED PILOT FURLOUGHS AT AMERICAN AND DELTA WILL DOUBLE THE NUMBER OF PILOTS ON FURLOUGH MR LAVOY OF THE PILOTS' UNION SAID IT HADN'T BEEN TOLD OFFICIALLY ANYTHING ABOUT LAYOFFS BY THE COMPANY AND HE WANTED TO CHECK AMERICAN'S ARITHMETIC WITH 10300 PILOTS AND ABOUT 250 RETIRING EACH YEAR MR LAVOY IS HOPING SOME OF THE PLANNED FURLOUGH CAN BE ABSORBED BY RETIREMENTS SIMILARLY MARION FINLEY OF THE TRANSPORT WORKERS UNION LOCAL IN TULSA OKLA WHERE AMERICAN DOES MOST OF ITS HEAVY MAINTENANCE SAID THE LOCAL IS INVESTIGATING WHETHER AMERICAN COULD DO MORE CONTRACT MAINTENANCE WORK FOR ITS COMPETITORS THUS KEEPING SOME JOBS 9304020065 930402 INTERNATIONAL EGYPT STILL IS DRAWING FOREIGN INVESTORS RECENT VIOLENCE DOESN'T THWART INTEREST IN 20 CONCERNS BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL CAIRO EGYPT ALTHOUGH VIOLENCE BY MUSLIM EXTREMISTS HAS CUT EGYPT'S TOURIST RECEIPTS IN HALF THIS YEAR THERE ARE SIGNS THAT FOREIGN INVESTORS HAVEN'T YET GIVEN UP ON THE COUNTRY'S BATTERED ECONOMY OR ITS BELEAGUERED GOVERNMENT THIS WEEK ON THE DAY A SMALL BOMB EXPLODED IN ONE OF THE GREAT PYRAMIDS A DELEGATION FROM PEPSICO INC WAS KICKING TIRES AT THE STATEOWNED PEPSI BOTTLING COMPANY HERE LOOKING TO BUY IT OVER AT GENERAL ELECTRIC CO'S OFFICES ALONG THE NILE PLANS WERE BEING DRAWN UP FOR A NEW SECURITY STATION IN THE BUILDING'S ENTRY HALL AS INVESTMENT BANKERS AT GE'S KIDDER PEABODY UNIT WERE RUNNING THE NUMBERS ON OTHER GOVERNMENT COMPANIES FOR SALE AND JUST HOURS AFTER TUESDAY'S PYRAMID BLAST WHICH INJURED TWO WORKERS BUT CAUSED NO DAMAGE A PAIR OF VISITING PRIVATIZATION EXPERTS FROM BANK OF AMERICA A UNIT OF BANKAMERICA CORP DINED AT THE SPECTACULAR MENA HOUSE HOTEL RIGHT ACROSS THE ROAD FROM THE 4500YEAROLD MONUMENTS OBVIOUSLY YOU'VE GOT TO WATCH OUT SAYS CONRAD PETERSON DIRECTOR OF A USFUNDED GROUP THAT BRINGS SOME 100 RETIRED AMERICAN EXECUTIVES A YEAR TO EGYPT TO GIVE BUSINESS ADVICE TO LOCAL COMPANIES AT THE SAME TIME THIS IS A LONG WAY FROM VIETNAM THE RECENT SPATE OF ANTIGOVERNMENT VIOLENCE COULDN'T HAVE COME AT A WORSE TIME FOR EGYPT'S HALTING EFFORTS AT ECONOMIC REFORM IN FEBRUARY EGYPT AFTER 18 MONTHS OF INTENSE PRESSURE FROM THE WORLD BANK AND INTERNATIONAL MONETARY FUND FINALLY PUBLISHED A LIST OF THE FIRST 20 COMPANIES IT PLANS TO PRIVATIZE IN THE NEXT SEVERAL MONTHS WITH ADVISORY HELP FROM ACCOUNTANTS COOPERS LYBRAND DELOITTE THE LONDON AFFILIATE OF US FIRM COOPERS & LYBRAND AND US BUILDER BECHTEL GROUP THE SELLOFF LIST WAS STACKED WITH JEWELS SUCCESSFUL HOTELS AND FACTORIES MEANT TO PIQUE INVESTOR INTEREST WHILE POSING MINIMAL RISK OF ADDING TO EGYPT'S MASSIVE UNEMPLOYMENT ONCE THEY ARE PRIVATIZED SO FAR DESPITE THE RECENT VIOLENCE THE STRATEGY SEEMS TO BE WORKING SAY PRIVATIZATION OFFICIALS AND POTENTIAL INVESTORS THE LIST OF 20 COMPANIES ATTRACTED DOZENS OF PREQUALIFICATION APPLICATIONS FROM LOCAL AND INTERNATIONAL INVESTORS WITH SOME OF THE ENTERPRISES DRAWING INTEREST FROM AS MANY AS 40 DIFFERENT PARTIES THESE PRELIMINARY APPLICATIONS ARE STILL A FAR CRY FROM ACTUAL BIDS OF COURSE BUT THE VOLUME AND QUALITY OF INTERESTED INVESTORS WITH THE NOTABLE EXCEPTION OF THE TOURISM INDUSTRY IS SEEN HERE AS AN IMPORTANT VOTE OF CONFIDENCE THERE IS NO SERIOUS INVESTOR WHO WOULD COMMIT HIMSELF TO THE EXISTING SECURITY SITUATION IN EGYPT CONCEDES ALAA AMER THE MAN IN CHARGE OF PRIVATIZATION FOR EGYPT'S PUBLIC ENTERPRISE OFFICE BUT THE SERIOUS INVESTOR KNOWS THE EXISTING SITUATION WON'T PREVAIL TOPPING THE LIST OF PROSPECTIVE BIDDERS FOR FIRSTBATCH COMPANIES ARE PEPSICO AND COCACOLA CO BOTH INTERESTED IN BUYING THE BIG STATEOWNED BOTTLERS OTHER HOT OFFERINGS INCLUDE A 37 SHARE OF SUEZ CEMENT CO WITH PROFITS OF 15 MILLION IN 1991 ON SALES OF 71 MILLION AS WELL AS COMPANIES PRODUCING GLASS CHEMICALS AND REFRIGERATORS TOURISM HOWEVER IS A VERY TOUGH SELL THOUGH THE SEVEN BIG HOTELS AND NILE BOATS ATTRACTED SEVERAL PREQUALIFICATION APPLICATIONS EGYPTIAN INVESTORS FAMILIAR WITH THE PROCESS SAY INTEREST IN THEM IS LACKLUSTER WERE AN AUCTION HELD TOMORROW THEY SAY PRICES WOULD BE LOW ATTACKS ON TOURISTS HAVE CREATED A CERTAIN AMOUNT OF NERVOUSNESS IN THE MARKET SAYS FARID SAAD CHAIRMAN OF EGYPTIAN FINANCE CO A LARGE INVESTOR IN EGYPTIAN HOTELS AND INDUSTRIAL COMPANIES SOME BANKS HAVE HAD SECOND THOUGHTS IT HAS MADE LIFE MORE COMPLICATED THE DECLINING VALUE OF TOURISM EGYPT'S LARGEST FOREIGNEXCHANGE EARNER WHICH GARNERED ROUGHLY 25 BILLION LAST SEASON STEMS NOT ONLY FROM THE RECENT VIOLENCE BUT FROM A GROWING FEELING THAT EGYPT'S DAYS AS THE PLAYGROUND OF THE MIDEAST MAY BE NUMBERED THOUGH PRESIDENT HOSNI MUBARAK SHOWS NO SIGNS OF YIELDING TO THE ISLAMIC EXTREMISTS OR OF STEPPING DOWN WHEN HIS THIRD TERM ENDS IN OCTOBER HIS SUPPORT AMONG EGYPT'S URBAN MIDDLE CLASS IS SLIPPING INDEED EGYPTIAN INVESTMENT BANKERS SAY THEY ARE ADVISING THEIR FOREIGN CLIENTS TO STEER CLEAR OF TOURISM INVESTMENTS HERE BECAUSE A CHANGE TOWARD A MORE CONSERVATIVE GOVERNMENT NOW APPEARS INEVITABLE THE EXTREMISTS CAUSING TODAY'S PROBLEMS REMAIN A TINY MINORITY THESE FINANCIERS SAY BUT MOREMAINSTREAM ISLAMIC GROUPS SUCH AS THE 70YEAROLD MUSLIM BROTHERHOOD ENJOY WIDE SUPPORT ESPECIALLY AMONG THE INFLUENTIAL MERCHANT CLASS AS THEIR POLITICAL POWER GROWS WHICH SEEMS LIKELY IF EGYPT IS TO AVOID CIVIL WAR THESE INVESTMENT BANKERS SAY ALCOHOL CASINOS MIXED SUNBATHING AND OTHER ATTRACTIONS FOR FOREIGN TOURISTS COULD BE BANNED 9304020064 930402 RATING ON KMART'S 59 BILLION OF DEBT IS CUT BY MOODY'S BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL MOODY'S INVESTORS SERVICE INC LOWERED ITS RATINGS ON ABOUT 59 BILLION OF KMART CORP DEBT EXPRESSING CONCERN THAT THE RETAILER CAN'T ADEQUATELY IMPROVE ITS PERFORMANCE IN THE HOTLY COMPETITIVE DISCOUNT MARKET THE DOWNGRADE ALSO COVERS DEBT OF KMART'S PACE MEMBERSHIP WAREHOUSE INC UNIT WHICH HAS BEEN HURT PARTLY BY RECENT SOFTNESS IN THE WAREHOUSE INDUSTRY ITS OPERATING PROFIT DROPPED 57 IN KMART'S FISCAL FOURTH QUARTER ENDED JAN 27 IN TROY MICH WHERE KMART IS BASED ORREN KNAUER KMART'S VICE PRESIDENT INVESTOR RELATIONS SAID THE COMPANY WAS DISAPPOINTED BY MOODY'S ACTION BUT HE CONTENDED MOODY'S NEW RATINGS ARE NOW EQUIVALENT TO THOSE OF OTHER RATINGS AGENCIES INCLUDING STANDARD & POOR'S CORP THE ANNOUNCEMENT CAME AFTER THE STOCK MARKET HAD CLOSED ON THE NEW YORK STOCK EXCHANGE KMART CLOSED AT 23375 DOWN 50 CENTS MOODY'S LOWERED KMART'S SENIOR UNSECURED DEBT AND MEDIUMTERM NOTES TO SINGLEA2 FROM SINGLEA1 ITS INDUSTRIAL DEVELOPMENT BONDS TO SINGLEA2 AND SINGLEA3 FROM SINGLEA1 AND SINGLEA2 RESPECTIVELY ITS LEASE CERTIFICATES TO SINGLEA3 FROM SINGLEA2 AND ITS PREFERRED STOCK TO SINGLEA3 FROM SINGLEA2 IT ALSO DOWNGRADED PACE MEMBERSHIP WAREHOUSE SUBORDINATED DEBT TO SINGLEA3 FROM SINGLEA2 KMART'S PRIME1 COMMERCIAL PAPER RATING WASN'T AFFECTED MOODY'S DECISION TO DOWNGRADE AFTER PUTTING THE DEBT ON CREDITWATCH IN JANUARY COMES DESPITE KMART'S FIVEYEAR 3 BILLION STORERENOVATION PROGRAM INTENDED TO HELP THE NO 2 RETAILER BETTER COMPETE WITH INDUSTRY LEADER WALMART STORES INC ABOUT HALF OF KMART'S STORES CURRENTLY HAVE THE NEW LOOK WHICH INCLUDES WIDER AISLES AND MORE LINES OF UPGRADED MERCHANDISE MOODY'S SAID THAT ALTHOUGH KMART HAS SUBSTANTIALLY IMPROVED ITS DISCOUNT STORES AND OPERATIONS DURING THE LAST FEW YEARS THE INDUSTRY HAS GREATLY CONSOLIDATED IN THAT TIME AND LEFT BEHIND SOME STRONG DISCOUNTERS WITH WHICH TO CONTEND INDEED THE RATINGS CONCERN SAID KMART WILL HAVE DIFFICULTY ACHIEVING SALES EARNINGS AND PRODUCTIVITY GROWTH IN RECENT MONTHS KMART'S SALES AT STORES OPEN AT LEAST A YEAR A KEY INDICATOR OF RETAIL PERFORMANCE HAVE TRAILED SUCH COMPETITORS AS WALMART AS WELL AS OTHERS IN THE INDUSTRY ONE WAY KMART HAS TRIED TO SET ITSELF APART FROM OTHER DISCOUNTERS IS TO FOCUS ON FASHION ITS POPULAR ADVERTISING CAMPAIGN TARGETS AN UNLIKELY CUSTOMER PROFESSIONAL WOMEN AND CHAIRMAN JOSEPH ANTONINI HAS SAID CONSUMERS ARE REACTING FAVORABLY TO THE HIGHERQUALITY MERCHANDISE WHILE IT APPEARS FASHION SALES HAVE BEGUN TO HELP EARNINGS MOODY'S CONTENDED KMART CAN'T IMPROVE ITS PERFORMANCE TO A LEVEL CONSISTENT WITH THE FORMER SINGLEA1 RATING WITH ITS BIG SPECIALTYSTORE OPERATIONS KMART ALSO IS MORE DIVERSE THAN MANY OF ITS COMPETITORS AND THEREFORE LESS VULNERABLE TO THE DISCOUNT INDUSTRY'S CUTTHROAT ENVIRONMENT MOODY'S NOTED THAT SOME OF THESE BUSINESSES SUCH AS OFFICEMAX AND SPORTS AUTHORITY ARE WELLPOSITIONED TO MEET THE CHALLENGING CUSTOMER DEMANDS OF THE 1990S HOWEVER MOODY'S SAID OTHER KMART SPECIALTY BUSINESSES SUCH AS BUILDERS SQUARE AND THE PACE CHAIN STILL LACK GOOD STRATEGIC POSITIONING LONGTERM EARNINGS AND CASH FLOW FROM THOSE BUSINESSES ARE THUS MORE QUESTIONABLE MOODY'S SAID 9304020063 930402 OTC FOCUS INDEX DECLINES 051 AMID CONCERN OVER US JOBS FIGURES DUE OUT TODAY BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS SPIRALED DOWNWARD WHILE ANXIETY OVER THE LABOR DEPARTMENT'S EMPLOYMENT FIGURES DUE OUT TODAY SENT MANY INVESTORS SCRAMBLING FOR THE SIDELINES THE NASDAQ COMPOSITE INDEX LOST 349 POINTS OR 051 TO 68664 DECLINING ISSUES TOPPED ADVANCERS 1369 TO 1270 TRADING WAS AT NORMAL LEVELS ALTHOUGH IT DECLINED FROM WEDNESDAY'S STRONG ENDOFTHEQUARTER PACE TOTAL NATIONAL MARKET SYSTEM VOLUME WAS 209250000 SHARES COMPARED WITH 218260000 WEDNESDAY CHARLES HOWLEY OF SOUNDVIEW FINANCIAL GROUP SAID OTC STOCKS SLID IN PART AS MARKET PLAYERS TOOK A PAUSE FROM THE WINDOW DRESSING OF PORTFOLIOS THAT HAS CHARACTERIZED TRADING IN RECENT SESSIONS IT WAS THE UNDOING OF THE LAST WEEK OF THE QUARTER MR HOWLEY SAID FOR THE LAST TWO DAYS THE NASDAQ COMPOSITE WAS STRONG BUT TODAY THE NECESSITY TO ADD STOCKS TO YOUR PORTFOLIO DIDN'T EXIST LARGER SHARES FINISHED MIXED WITH THE DOW JONES INDUSTRIAL AVERAGE GAINING 433 POINTS OR 013 TO 343944 AFTER SLIPPING NEAR THE CLOSE ON PROGRAM SELLING THE INDUSTRIALS HAD BEEN UP ABOUT 15 POINTS INTRADAY THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAVE UP 068 POINT OR 027 TO 24874 RUMORS CONTINUE TO CIRCULATE THAT THE GOVERNMENT'S JOB FIGURES TODAY WILL BE BELOW EXPECTATIONS ECONOMIC DATA FROM YESTERDAY MORNING ALSO AFFECTED OTC TRADING MARKET WATCHERS SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FOR THE WEEK ENDED SATURDAY ROSE 33000 ANALYSTS HAD FORECAST A DECLINE OF 3000 CLAIMS ADDITIONALLY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S INDEX FOR MARCH FELL TO 534 FROM 558 IN FEBRUARY THE INDEX HAD BEEN EXPECTED AT 54 BUT A READING ABOVE 50 INDICATES THAT THE MANUFACTURING ECONOMY IS GENERALLY EXPANDING WHILE AN INDEX BELOW 50 SHOWS A GENERAL DECLINE SOUNDVIEW'S MR HOWLEY SAID A FEDERAL COMMUNICATIONS COMMISSION DECISION TO SET A BENCHMARK FOR PRICES CHARGED BY THE CABLE TELEVISION INDUSTRY PUT PRESSURE ON THE TELECOMMUNICATIONS GROUP THE FCC BENCHMARK IS ABOUT 10 BELOW THE AVERAGE PRICE CHARGED BY CABLE COMPANIES BEFORE CONGRESS PASSED THE CABLE TV REGULATION BILL LAST FALL JERRY NEWMAN AN INSTITUTIONAL TRADER AT COWEN & CO SAID SOME OF THE TECHNOLOGY STOCKS PARTICULARLY THE SEMICONDUCTORS CAME UNDER PRESSURE TODAY AND THE LIGHTER BOND MARKET ADDED TO THE ANXIETY THE TREASURY'S 30YEAR BOND LOST NEARLY 1/2 POINT PUSHING ITS YIELD UP TO 696 LOOKING BACK ON THE FIRST QUARTER THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM SAID IT EXPECTS TO SEE THAT SMALLCAPITALIZATION COMPANIES' EARNINGS FOR THE QUARTER INCREASED 511 FROM LAST YEAR IBES ESTIMATES THAT FIRSTQUARTER EARNINGS FOR SMALLCAP COMPANIES ROSE TO ABOUT 31 BILLION FROM 21 BILLION BASED ON A SURVEY OF 1800 SMALLCAP COMPANIES IN THE IBES DATABASE RICHARD PUCCI VICE PRESIDENT OF RESEARCH AT IBES SAID BASICALLY LARGERCAP COMPANIES ARE MULTINATIONAL WHILE SMALLCAP COMPANIES ARE MORE DOMESTICBASED THE EUROPEAN AND JAPANESE ECONOMIES ARE MUCH WORSE THAN THE US ECONOMY SHARES OF SEVERAL TECHNOLOGY ISSUES MOVED ON INDIVIDUAL COMPANY NEWS INTEL A MICROCOMPUTER PARTS COMPANY SHED 3 1/2 TO 111 1/2 THE COMPANY SAID IT PLANS A 1 BILLION EXPANSION OF ITS FAB 9 MICROCHIP FACTORY IN RIO RANCHO NM WHICH THE FIRM SAID WILL CREATE AS MANY AS 1000 NEW JOBS CISCO SYSTEMS FELL 1/2 TO 44 1/4 A PAINEWEBBER ANALYST BEGAN COVERAGE OF THE COMPUTER INTERNETWORKING PRODUCTS CONCERN WITH AN ATTRACTIVE RATING ORACLE SYSTEMS GAINED 1/8 TO 36 7/8 AFTER PIPER JAFFRAY INITIATED COVERAGE ON THE SOFTWARE COMPANY'S SHARES WITH AN ACCUMULATE RATING SYMANTEC ROSE 1/2 TO 13 3/8 A SOUNDVIEW FINANCIAL ANALYST RAISED HIS SHORTTERM RATING ON THE SOFTWARE COMPANY TO BUY FROM HOLD TELECOMMUNICATIONS INC LED THE MOSTACTIVES LIST AND FELL 2 TO 20 1/2 AFTER THE COMPANY CALLED THE FCC'S CABLE TV DECISION UNDULY HARSH MCI COMMUNICATIONS WAS 3/8 HIGHER AT 44 7/8 AFTER SAYING THAT IT HAS RECEIVED A MULTIMILLIONDOLLAR CONTRACT TO PROVIDE CERTAIN NORTH AMERICAN DIGITAL CONNECTIONS FOR A GROUP OF 32 FOREIGN TELECOMMUNICATIONS CARRIERS THE COMPANY ALSO SAID IT HAS RECEIVED FCC APPROVAL FOR ITS VIDEOPHONE ERICSSON REBOUNDED 1 7/8 TO 36 5/8 AFTER THE STOCKHOLMBASED TELECOMMUNICATIONS FIRM SAID IT SIGNED A 300 MILLION CONTRACT WITH THE GUANGDONG POST & TELECOMMUNICATION BUREAU IN CHINA TO DELIVER AXE SWITCHING EQUIPMENT AS WELL AS TRANSMISSION AND COOLING EQUIPMENT IDB COMMUNICATIONS ROSE 2 TO 28 3/4 AFTER IT SAID ITS IDB WORLDCOM SUBSIDIARY ENTERED INTO AN OPERATING AGREEMENT WITH TELEFONOS DE MEXICO TO OFFER INTERNATIONAL TELEPHONE SERVICES TO MEXICO THE MEDICALRELATED GROUP SLID ACROSS THE BOARD WITH MEDCO CONTAINMENT DROPPING 2 1/2 TO 30 1/2 ALEX BROWN REMOVED THE PROVIDER OF COSTCONTAINMENT SERVICES FROM ITS SELECTED OPPORTUNITY LIST BUT MAINTAINED ITS STRONG BUY RATING OTHER DECLINERS IN THE SECTOR INCLUDED US HEALTHCARE WHICH LOST 2 1/4 TO 44 BIOGEN WHICH DECLINED 3/4 TO 28 3/4 CHIRON DOWN 2 AT 46 1/4 AND GENZYME WHICH EASED 1 1/4 TO 33 1/4 REP PETE STARK CHAIRMAN OF THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE INTRODUCED A BILL THAT WOULD IMPOSE A WINDFALL PROFIT TAX ON COMPANIES THAT EARN SUBSTANTIAL SUMS FOR ORPHAN DRUGS AND HE SINGLED OUT GENZYME AS AN ABUSER OF ORPHANDRUG PRIVILEGES FOR ITS CERADESE DRUG 9304020062 930402 BUSINESS BRIEF ICH CORP INSURANCE HOLDING COMPANY TO POST GAIN IN 1ST QUARTER ICH CORP SAID IT WILL RECORD A GAIN OF ABOUT 95 MILLION OR 2 A SHARE IN THE FIRST QUARTER FROM THE SALE OF PART OF ITS INVESTMENT IN BANKERS LIFE HOLDING CORP AS PART OF BANKERS LIFE'S MARCH 31 INITIAL PUBLIC OFFERING ICH CUT ITS STAKE IN BANKERS LIFE TO 244 FROM 399 AND REDEEMED BANKERS LIFE PREFERRED STOCK AND DEBT HELD BY ICH IN THE 1992 FIRST QUARTER ICH HAD A LOSS OF 335 MILLION OR 70 CENTS A SHARE AFTER CHARGES THE INSURANCE HOLDING COMPANY WHICH IS BASED IN LOUISVILLE KY ALSO REPORTED FOURTHQUARTER PROFIT OF 491 MILLION OR 86 CENTS A SHARE REVERSING A YEARAGO LOSS OF 37 MILLION OR 24 CENTS A SHARE ICH HAD A 1107 MILLION GAIN FROM THE SALE OF A SUBSIDIARY WHICH WAS MORE THAN OFFSET BY 773 MILLION IN INVESTMENT LOSSES AND A 415 MILLION CHARGE FOR CONSOLIDATIONS AND LITIGATION 9304020061 930402 BUSINESS BRIEF INTERNATIONAL TELECHARGE INC HOLDERS APPROVE MERGER WITH CLOSELY HELD FIRM TROUBLED INTERNATIONAL TELECHARGE INC DALLAS SAID STOCKHOLDERS APPROVED ITS PREVIOUSLY ANNOUNCED MERGER WITH LONG DISTANCE COMMUNICATIONS INC MAKING INTERNATIONAL TELECHARGE A UNIT OF CLOSELY HELD LONG DISTANCE UNDER THE TERMS OF THE MERGER INTERNATIONAL TELECHARGE'S SHAREHOLDERS WILL RECEIVE 30 CENTS FOR EACH COMMON SHARE EXCEPT FOR CHAIRMAN RONALD HAAN HIS AFFILIATES AND DISSENTING SHAREHOLDERS MR HAAN OWNS LONG DISTANCE COMMUNICATIONS COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT OR ELABORATION BOTH COMPANIES PROVIDE LONG DISTANCE TELEPHONE SERVICES THE STOCK OF INTERNATIONAL TELECHARGE WHICH HAD SAID IT MIGHT BE FORCED TO FILE FOR BANKRUPTCYCOURT PROTECTION IF SHAREHOLDERS DIDN'T APPROVE THE MERGER WAS RECENTLY DELISTED BY THE AMERICAN STOCK EXCHANGE AFTER IT FAILED TO MEET FINANCIAL AND STOCKPRICE GUIDELINES FOR LISTING 9304020060 930402 BUSINESS BRIEF ALBERTA NATURAL GAS CO UNIT IS TO GET 44 MILLION IN SETTLEMENT OF LITIGATION ALBERTA NATURAL GAS CO SAID ITS ANGUS CHEMICAL CO UNIT WILL RECEIVE ABOUT 44 MILLION AS A RESULT OF LITIGATION FOLLOWING A 1991 FIRE AND EXPLOSION AT ANGUS'S NITROPARAFFINS PLANT IN STERLINGTON LA UNDER THE AGREEMENT ANGUS WILL RECEIVE 44 MILLION OVER THREE YEARS FROM IMC FERTILIZER GROUP INC OPERATOR OF THE PLANT ANGUS SAID IT WILL SHARE ABOUT 10 MILLION OF THAT WITH THIRDPARTY LIABILITY INSURERS ANGUS'S PROPERTY INSURER INDUSTRIAL RISK INSURERS WILL RECEIVE C136 MILLION AS PART OF THE SETTLEMENT WITH PAYMENT TO BE SPREAD OVER THREE YEARS IMC ALSO HAS DROPPED A CLAIM SEEKING REIMBURSEMENT FROM ANGUS FOR 98 MILLION PAID BY IMC TO THE US OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION UNDER THE AGREEMENT ALBERTA NATURAL IS A CALGARYBASED PIPELINE AND CHEMICALS CONCERN 9304020059 930402 INTERNATIONAL BRIEF THAMES TELEVISION PLC MAJORITY HOLDER THORN EMI DISCUSSES SALE WITH PEARSON THAMES TELEVISION PLC LONDON AN INDEPENDENT PRODUCTION COMPANY IN THE UK CONFIRMED THAT IT'S THE SUBJECT OF SALE TALKS BETWEEN PEARSON PLC AND THORN EMI WHICH HOLDS 589 OF THAMES THAMES WHICH SAID THE TALKS ARE IN THE PRELIMINARY STAGE LOST ITS INDEPENDENT TELEVISION LICENSE LAST YEAR AND HAS SINCE BEEN PRODUCING TV PROGRAMS FOR SALE THE COMPANY ALSO SAID THAT IT WILL TAKE A PROPERTY CHARGE OF BETWEEN 35 MILLION 53 MILLION AND 42 MILLION AFTER EXPECTED TAX RELIEF OF ABOUT 10 MILLION AND WILL HAVE A NET LOSS FOR 1992 IT ADDED THAT IT WOULDN'T PAY A DIVIDEND AFTER BEING SUSPENDED FROM TRADING TUESDAY THAMES STOCK RESUMED TRADING YESTERDAY FALLING 33 PENCE TO 188 PENCE ON LONDON'S STOCK EXCHANGE 9304020058 930402 FIRST SUMMIT CLINTONYELTSIN PARLEY IS CRITICAL FOR FUTURES OF BOTH PRESIDENTS RUSSIAN NEEDS US AID IN BID FOR STABILITY AS AMERICAN FACES WARY TAXPAYERS SHAPING TIES AFTER COLD WAR BY CARLA ANNE ROBBINS AND ADI IGNATIUS STAFF REPORTERS OF THE WALL STREET JOURNAL AS THEY PREPARE FOR THEIR MEETING IN VANCOUVER BRITISH COLUMBIA THE RUSSIAN AND US PRESIDENTS ARE FINDING THAT THEY HAVE A LOT IN COMMON BOTH ARE TAKING CONSIDERABLE POLITICAL RISKS JUST BY SHOWING UP BOTH BELIEVE THEIR POLITICAL FUTURES ARE LINKED AND BOTH FACE SKEPTICAL PUBLICS AT HOME IF RUSSIAN NATIONALISTS ARE WORRIED ABOUT MR YELTSIN SELLING OUT TO THE WEST AMERICAN TAXPAYERS ARE WORRIED THAT THE US MAY BE BUYING WHAT MR YELTSIN NEEDS FROM MR CLINTON IS OBVIOUS ENOUGH AMERICAN AID TO HELP BEAT BACK HYPERINFLATION AND THE MOST DANGEROUS POLITICAL CHALLENGES OF HIS POLITICAL CAREER AT THE SAME TIME THE EMBATTLED RUSSIAN LEADER HOPES TO COME ACROSS AS AN EQUAL PARTNER TO MR CLINTON AND TO AFFIRM RUSSIA'S STATURE AS A WORLD POWER US OFFICIALS SAY MR YELTSIN WILL LEAVE VANCOUVER WITH AT LEAST A DOWN PAYMENT IN HIS POCKET MR CLINTON'S NEEDS ARE MORE SUBTLE BUT NO LESS CRITICAL HIS ENTIRE PRESIDENCY SAY AIDES IS BASED ON HIS ABILITY TO REDUCE DEFENSE SPENDING AND REFOCUS RESOURCES ON DOMESTIC PROBLEMS FOR THAT A STABLE AND NONTHREATENING RUSSIA IS INDSPENSABLE FOR MR CLINTON THAT REALIZATION WAS DRIVEN HOME CHILLINGLY DURING THE AUGUST 1991 MOSCOW COUP ATTEMPT WHILE TRAVELING IN THE PACIFIC NORTHWEST HE CALLED FRIENDS TO SAY THAT IF THE HARDLINERS WON IN RUSSIA HE MIGHT AS WELL THROW IN THE TOWEL ON HIS PRESIDENTIAL ASPIRATIONS FROM THAT MOMENT ON ACCORDING TO A CONFIDANT MR CLINTON WAS CONVINCED THAT IF HE BECAME PRESIDENT HE WOULD HAVE TO SPEND A GOOD DEAL OF US RESOURCES AND OF HIS OWN POLITICAL CAPITAL MAKING SURE REFORM SUCCEEDED IN RUSSIA BILL CLINTON UNDERSTOOD THAT THE NECESSARY CONDITION FOR HIS ELECTION WAS THE END OF THE COLD WAR AND HE UNDERSTANDS THAT THE RETURN OF THE COLD WAR COULD DERAIL HIS PROGRAM AND HIS PRESIDENCY SAYS MICHAEL MANDELBAUM A CLINTON CAMPAIGN ADVISER AND THE DIRECTOR OF THE EASTWEST CENTER AT THE COUNCIL ON FOREIGN RELATIONS HE TRULY SEES HIMSELF AS THE FIRST POSTCOLD WAR PRESIDENT OF COURSE THE SOVIET EMPIRE IS GONE MAKING A FULL RETURN TO THE COLD WAR UNLIKELY BUT THE CHAOS OF CIVIL WAR MASSIVE REFUGEE FLOWS AND THOUSANDS OF LOOSE NUCLEAR WEAPONS COULD BE JUST AS DAMAGING TO MR CLINTON'S PLANS FOR SHIFTING RESOURCES TO AMBITIOUS DOMESTIC PROJECTS MR YELTSIN'S VIEW OF THE RELATIONSHIP IS HARDER TO PLUMB THE RUSSIAN PRESIDENT IS IN AWE OF THE US ITS WEALTH AND ITS HISTORY SAYS VIKTOR KREMENYUK DEPUTY DIRECTOR OF THE USACANADA INSTITUTE A MOSCOW THINK TANK WHEN MR YELTSIN VISITED NEW YORK IN 1989 HE ASKED TO CIRCLE THE STATUE OF LIBERTY IN A HELICOPTER THREE TIMES AFTERWARD MR KREMENYUK SAYS THE RUSSIAN LEADER DECLARED NOW I'M THREE TIMES MORE FREE AND ALTHOUGH THE TWO PRESIDENTS DON'T YET HAVE A CLOSE WORKING RELATIONSHIP SOME ADVISERS FEEL THEY SHARE MUCH AN AIDE TO MR YELTSIN POINTS OUT THAT BOTH MEN HOLD THEMSELVES OUT AS REFORMERS TO MANY RUSSIANS CLINTON IS VIEWED AS AN AMERICAN YELTSIN HE SAYS BUT THE RELATIONSHIP COULD BE ROCKY EARLIER MR YELTSIN WAS STUNG BY MR CLINTON'S REFUSAL TO SCHEDULE A SNAP SUMMIT AND HE IS SAID TO BE SKEPTICAL ABOUT RECREATING THE SORT OF FRIENDSHIP HE HAD WITH PRESIDENT BUSH THE AMERICANS FOR THEIR PART STILL NEED TO SIZE UP A LEADER WHO WHILE DEMOCRATICALLY ELECTED CAN BE ERRATIC AND AUTHORITARIAN HE'S VERY DECISIVE AND HE DOESN'T CONSULT PEOPLE SAYS FORMER PRIME MINISTER YEGOR GAIDAR WHO STILL SITS ON THE PRESIDENT'S TOP ADVISORY COUNCIL SOMETIMES HE WINS SOMETIMES HE LOSES AT THE SUMMIT PRESIDENT CLINTON WILL VOW TO DELIVER SIGNIFICANTLY MORE THAN 1 BILLION IN AID ACCORDING TO TOP OFFICIALS HE WILL PROMISE ADDITIONAL AID LATER ONCE HE PERSUADES THE EUROPEANS AND JAPANESE TO BACK AN INTERNATIONAL BAILOUT PACKAGE AND THE INTERNATIONAL MONETARY FUND TO GIVE RUSSIA A BETTER DEAL IT'S NOT AN ACT OF CHARITY PRESIDENT CLINTON SAID OF RUSSIAN AID IN A SPEECH IN ANNAPOLIS MD YESTERDAY IT'S AN INVESTMENT IN OUR OWN FUTURE THE PROSPECT OF MORE AMERICAN AID LEAVES MANY RUSSIANS FEELING DEEPLY AMBIVALENT THEY WANT OUTSIDE HELP BUT ARE DEEPLY EMBARRASSED BY IT AND THEY ARE FRUSTRATED BY WHAT THEY SEE AS THE WEST'S CONSTANT STREAM OF EMPTY PROMISES A 24 BILLION INTERNATIONAL BAILOUT PROMISED BY PRESIDENT BUSH BUT ONLY HALFDELIVERED HAS BECOME A BITTER SYMBOL IN RUSSIA OF WESTERN DUPLICITY GOVERNMENT OFFICIALS SAY THE AID HAS BEEN SNARLED IN BUREAUCRATIC TANGLES IN MOSCOW AND TO A LESSER EXTENT IN WASHINGTON IN VORONEZH AN INDUSTRIAL TOWN 400 MILES SOUTH OF MOSCOW PEOPLE SAY THEY ARE SICK OF WESTERN CONSULTANTS AND DON'T NEED ANY MORE CHARITY HANDOUTS VIKTOR DAVYDKIN MR YELTSIN'S REPRESENTATIVE THERE SAYS WHAT HE WOULD LIKE IS A WESTERNFINANCED PRIVATELY OWNED MILL TO PROCESS LOCAL AGRICULTURAL PRODUCTS THE VANCOUVER PACKAGE WILL INCLUDE ITS SHARE OF CONSULTANTS BUT IT WILL ALSO CALL FOR A PRIVATE ENTERPRISE FUND THAT COULD HELP MAKE PROJECTS LIKE THE VORONEZH MILL HAPPEN MR CLINTON IN THE ANNAPOLIS SPEECH SAID THAT THE PROGRAMS HE WANTS TO BACK MUST BE TANGIBLE TO THE RUSSIAN PEOPLE HAVE LASTING IMPACT AND BYPASS THE CENTRAL BUREAUCRACY MEANWHILE WAVES OF FOREIGN INVESTMENT NOT JUST GOVERNMENT GRANTS ARE NEEDED TO GET RUSSIA BACK ON ITS FEET AND SO FAR BUSINESS PEOPLE HAVE BEEN STYMIED BY VAGUELY DEFINED PROPERTY RIGHTS RUNAWAY INFLATION AND EVERCHANGING PRIVATIZATION PLANS IF I WERE A FOREIGN INVESTOR FRANKLY I WOULDN'T INVEST HERE SAYS RAIR SIMONYAN HEAD OF MOSCOW'S CENTER FOR FOREIGN INVESTMENT AND PRIVATIZATION SUPPOSEDLY ONE OF THE MAIN CHEERLEADERS FOR DOING BUSINESS IN RUSSIA IF MR YELTSIN'S SUPPORTERS ARE DISCOURAGED HIS ENEMIES ARE FURIOUS JUST BY GOING TO VANCOUVER AIDES ADMIT MR YELTSIN IS RUNNING A VERY SLIGHT RISK THAT HE WILL BE OVERTHROWN IN HIS ABSENCE THE REAL TROUBLE HOWEVER COULD START AFTER HE RETURNS HIS OPPONENTS ARE CERTAIN TO ATTACK MR YELTSIN BITTERLY FOR TURNING TO THE AMERICANS IN HIS TIME OF NEED MR KREMENYUK SAYS THOSE SENTIMENTS CAN BE MANAGED SO LONG AS THE AID MATERIALIZES THE ANTIWESTERN SENTIMENT HERE IS NOT SERIOUS HE SAYS BUT IT CAN GET WORSE ESPECIALLY IF THE US ONCE AGAIN CREATES UNREALISTICALLY HIGH EXPECTATIONS THAT IT WILL POUR IN AID AND INVESTMENT STILL HE AND OTHERS BELIEVE THAT A SUCCESSFUL SUMMIT COULD STRENGTHEN MR YELTSIN POLITICALLY BY GIVING HIM THE CHANCE TO ACT PRESIDENTIAL ON THE INTERNATIONAL STAGE WITHOUT BEING EMBARRASSED AND UNDERCUT BY HIS RIVALS AT HOME FOR MR CLINTON WHO IS NOW CONSIDERING FREEING AS MUCH AS 2 BILLION IN AID FOR RUSSIA NEXT YEAR THERE ARE RISKS AS WELL WHEN THE PRESIDENT INVITED 15 MEMBERS OF THE HOUSE LEADERSHIP TO A WORKING DINNER ON RUSSIA LAST WEEK DEMOCRATIC REP LEE HAMILTON OF INDIANA SAID HE WOULD HAVE NO PROBLEM CONVINCING ANYONE IN THE ROOM OF THE NEED FOR MORE RUSSIAN AID BUT HE SAID THE PRESIDENT WOULD HAVE A MUCH TOUGHER TIME BACK IN INDIANA IN MY PART OF THE COUNTRY PEOPLE JUST DON'T SEE THIS AS AN URGENT PRIORITY HE SAID CLEARLY PRESIDENT CLINTON WISHES IT WEREN'T SO URGENT A PRIORITY THE DAY AFTER THE ELECTION WHEN MR YELTSIN RAISED THE IDEA OF AN EARLY SUMMIT THE PRESIDENTELECT WANTING FIRST TO FASHION HIS DOMESTIC AGENDA WAS COOL BUT THE POLITICAL TURMOIL IN RUSSIA HAS CONVINCED THE PRESIDENT THAT HE COULD WAIT NO LONGER RUSSIA'S PLIGHT HAS ENGAGED MR CLINTON IN WAYS THAT NO OTHER FOREIGNPOLICY ISSUE HAS SO FAR DONE IT'S CLEARLY CLIMBED TO THE TOP OF THE AGENDA SAYS PRESIDENTIAL SPOKESMAN GEORGE STEPHANOPOULOS WHO ESTIMATES THAT THE PRESIDENT IS DEVOTING 30 OF HIS WORKDAY TO RUSSIA 30 TO THE ECONOMY AND 30 TO HEALTH CARE WITH 10 LEFT FOR WHATEVER THE PRESIDENT HAS UNLEASHED THE FULL FORCE OF HIS POLICY WONKERY' ONTO THIS ONE SAYS A TOP AIDE HE HAS DIALED UP OLD FRIENDS LIKE RUSSIAPOLICY CZAR STROBE TALBOTT AND WHITE HOUSE CHIEF OF STAFF THOMAS MACK MCLARTY FOR LATENIGHT CHATS ON EVERYTHING FROM THE SUPPLY OF FEED GRAINS IN RUSSIA TO WHY OIL AND GAS PIPELINES THERE LEAK SO BADLY MR CLINTON INVITED FORMER PRESIDENT NIXON IN AND HEARD HIS IDEAS ON RUSSIAN AID AND HAS TELEPHONED EXPRESIDENTS BUSH CARTER AND FORD TO DISCUSS THE ISSUE AT A WHITE HOUSE DINNER FOR SEVERAL RUSSIAN EXPERTS WEDNESDAY MR CLINTON SAID HIS BIGGEST WORRY WAS THAT THE REPUBLICANS MIGHT FILIBUSTER HIS ECONOMIC PACKAGE THERE IS NO WAY HE SAID THAT HE COULD ASK CONGRESS FOR MORE FUNDS TO HELP ORDINARY RUSSIANS WHEN ORDINARY AMERICANS WERE OUT OF WORK THE VANCOUVER PACKAGE IS EXPECTED TO INCLUDE A HOUSING PROGRAM FOR RUSSIAN MILITARY OFFICERS FINANCIAL AND TECHNICAL HELP IN REPAIRING PIPELINES A PRIVATE ENTERPRISE FUND FOR NEW RUSSIAN ENTREPRENEURS A PRIVATIZATION FUND TO HELP THE STATE SELL OFF ASSETS AND A HOST OF CITIZENTOCITIZEN EXCHANGE AND ADVISORY PROGRAMS ALSO EXPECTED ARE MORE GRAIN CREDITS MR YELTSIN'S AIDES ARE LOOKING FOR A US ENDORSEMENT FOR RUSSIA'S ADMISSION INTO THE GENERAL AGREEMENT ON TARIFFS AND TRADE BEYOND ECONOMIC MATTERS THE SUMMIT IS EXPECTED TO DEAL WITH A HOST OF INTERNATIONAL AND SECURITY ISSUES INCLUDING BOSNIA IRAQ AND THE STALLED START I AND START II ARMSCONTROL AGREEMENTS THE RUSSIANS ARE LIKELY TO PUSH FOR A STATEMENT CRITICIZING UKRAINE'S FAILURE TO PASS THE INITIAL START TREATY AS WELL AS ITS WAFFLING ON THE QUESTION OF WHETHER IT ASPIRES TO NONNUCLEAR STATUS THERE ALSO WILL BE TALK OF COOPERATION ON MATTERS LIKE NUCLEAR PROLIFERATION AND EFFORTS TOWARD MIDEAST PEACE PRESIDENT CLINTON IS LIKELY TO DO SOME ARMTWISTING URGING MR YELTSIN TO GET HIS OWN ECONOMIC HOUSE IN ORDER AS A PREREQUISITE FOR ANY LARGER AID COMMITMENTS OTHER MATTERS FOR PRIVATE DISCUSSION RUSSIA'S ARMS SALES TO CLIENTS THE US CONSIDERS WORRISOME AND ITS FOOTDRAGGING ON NEW SANCTIONS FOR SERBIA IN CRAFTING THE VANCOUVER PACKAGE THE ADMINISTRATION HAS WALKED A POLITICAL TIGHTROPE THE AID NEEDS TO BE NEW ENOUGH AND LARGE ENOUGH TO MOLLIFY MR YELTSIN'S CRITICS BUT NOT SO NEW AND LARGE THAT IT SPARKS A BACKLASH AMONG US TAXPAYERS OR RUSSIAN NATIONALISTS IN AN APPROACH THAT IS LIKELY TO RELIEVE AMERICAN TAXPAYERS OFFICIALS SAY THE MONEY FOR THE VANCOUVER PACKAGE WILL BE DRAWN MAINLY FROM FUNDS ALREADY ALLOCATED UNDER THE 1992 AND 1993 BUDGETS BUT STILL UNSPENT BECAUSE OF BUREAUCRATIC TANGLES IN BOTH COUNTRIES SOME OF MR YELTSIN'S CRITICS WILL GROUSE THAT THIS IS JUST A REPACKAGING OF THE US CONTRIBUTION TO LAST YEAR'S 24 BILLION AID PACKAGE US OFFICIALS SAY THEY ARE NOT TRYING TO FOOL ANYBODY THE DIFFERENCE THEY SAY ORDINARY RUSSIANS WILL SEE THE BENEFITS RIGHT AWAY AND THEY EMPHASIZE THAT THE VANCOUVER PACKAGE IS ONLY A DOWN PAYMENT ON WHAT THEY WILL HAVE TO SPEND IN RUSSIA PRIVATELY US OFFICIALS SAY THAT THE ADMINISTRATION MAY HAVE TO COME BACK TO CONGRESS LATER THIS YEAR FOR AT LEAST 1 BILLION IN NEW SPENDING FOR RUSSIA BEYOND THE 700 MILLION THEY HAVE ALREADY PROPOSED FOR 1994 BUT THAT FIGHT THEY SAY IS STILL TO COME US OFFICIALS ARE HOPING THAT THE VANCOUVER PROGRAMS WILL AT LEAST BUY MR YELTSIN SOME POLITICAL TIME WOOING AND STRENGTHENING SEVERAL OF HIS KEY CONSTITUENCIES IN THE MILITARY ON FARMS AND IN THE NASCENT MIDDLE CLASS BUT EVEN THE MOST SUCCESSFUL OF THESE PROGRAMS WON'T SOLVE RUSSIA'S MOST DANGEROUS ECONOMIC AND POLITICAL PROBLEM INFLATION THAT IS NOW RUNNING AT LEAST 25 A MONTH THERE ARE A LOT OF PROJECTS THAT COULD MAKE RUSSIANS FEEL BETTER ABOUT US AND LET US FEEL GOOD ABOUT OURSELVES BUT THERE IS NO WAY RUSSIA CAN SUCCEED WITHOUT A STABLE CURRENCY SAYS JEFFREY SACHS A HARVARD ECONOMIST AND ADVISER TO THE RUSSIAN GOVERNMENT TO CURB INFLATION AND STABILIZE THE ECONOMY SAYS MR SACHS RUSSIA WILL NEED BILLIONS OF DOLLARS IN LOANS AND AID TO MAKE UP ITS BUDGETARY SHORTFALL SO THAT THE CENTRAL BANK CAN STOP PRINTING RUBLES MADLY MANY OF THOSE RUBLES GO TO PROP UP DYING INDUSTRIES BUT BEFORE THE RUSSIAN GOVERNMENT CAN EVEN CONSIDER CLOSING INEFFICIENT FACTORIES AND LAYING OFF WORKERS MOSCOW WILL NEED WESTERN FINANCIAL HELP TO FEED ITS PEOPLE AND PROVIDE THEM NEW JOBS CLINTON ADMINISTRATION OFFICIALS HAVE COME AROUND TO MR SACHS'S VIEW IN RECENT WEEKS AND WHILE THE US DOESN'T HAVE THE FUNDS TO STABILIZE THE RUBLE THE GROUP OF SEVEN INDUSTRIAL NATIONS PROBABLY DOES CLINTON AIDES HAVE BEEN LOBBYING OTHER G7 MEMBERS TO COME UP WITH A MULTIBILLIONDOLLAR STABILIZATION PACKAGE IN TIME FOR AN APRIL 1314 MINISTERIAL MEETING IN TOKYO MEANWHILE THEY HAVE BEEN PRESSING THE PARIS CLUB GROUP OF CREDITORS TO RESCHEDULE PAYMENTS ON RUSSIA'S FOREIGN DEBT THE G7 PACKAGE WILL INCLUDE A MIXTURE OF LOANS FROM THE IMF AND THE WORLD BANK AS WELL AS BILLIONS OF DOLLARS IN CREDITS AND GRANTS FROM THE INDIVIDUAL STATES THE LIKELY AMERICAN CONTRIBUTION COULD REACH 2 BILLION BUT THE REAL SACRIFICES ALL AGREE MUST COME IN RUSSIA THE LIST OF THINGS MR YELTSIN MUST DO TO IMPROVE HIS ECONOMY IS DAUNTING GAIN CONTROL OF THE CENTRAL BANK CLOSE INEFFICIENT FACTORIES AND REBUILD AGRICULTURE AND THE OIL AND GAS INDUSTRIES INEVITABLY UNEMPLOYMENT AND POVERTY WILL RISE WHETHER MR YELTSIN HAS THE POLITICAL SKILLS TO MAKE THIS HAPPEN IS ANYBODY'S GUESS PRESIDENT CLINTON WILL BE ASKING HIMSELF THAT QUESTION THROUGHOUT THE SUMMIT FOR HIS PART MR YELTSIN WILL BE PROBING MR CLINTON TO FIGURE OUT THE LIMITS OF US SUPPORT ESPECIALLY IF HE DECIDES TO SUSPEND RUSSIA'S PARLIAMENT AND SEEK FURTHER EMERGENCY POWERS BEFORE HE DOES ANYTHING DRASTIC HE'S GOING TO FIND OUT WHAT THE US THINKS PREDICTS A MEMBER OF THE RUSSIAN PRESIDENT'S INNER CIRCLE PRESIDENT CLINTON'S RESPONSE SAY AIDES IS ALREADY PREPARED MR YELTSIN WILL BE TOLD THAT US TOLERANCE IS CONSIDERABLE BUT NOT WITHOUT LIMITS 9304020057 930402 INTERNATIONAL JAPANESE CONSORTIUM TO TAKE A 15 STAKE IN MOTOROLA PROJECT TOKYO NEARLY 20 JAPANESE COMPANIES WILL TAKE A 15 STAKE IN MOTOROLA INC'S AMBITIOUS GLOBAL SATELLITE TELECOMMUNICATIONS PROJECT INDUSTRY OFFICIALS HERE SAID THE AGREEMENT WHICH WILL BE ANNOUNCED LATER THIS MONTH IS ANOTHER SIGNIFICANT STEP FORWARD FOR IRIDIUM INC THE PROJECT HAS BEEN SEEKING BACKERS WORLDWIDE FOR A 337 BILLION NETWORK SCHEDULED TO BEGIN OPERATION IN 1998 IT WILL CARRY VOICE PAGING FAX AND DATA MESSAGES WITHOUT LANDBASED RELAYS THE JAPANESE CONSORTIUM'S STAKE WILL BE VALUED AT ABOUT 240 MILLION ACCORDING TO SACHIO SEMMOTO OF DDI CORP A DOMESTIC LONGDISTANCE AND CELLULAR TELEPHONE CARRIER THAT IS LEADING THE GROUP OTHER PARTICIPANTS INCLUDE SONY CORP KYOCERA CORP AND MITSUBISHI CORP AS WELL AS SEVERAL OTHER CELLULAR PHONE COMPANIES AS PART OF THEIR STAKE THE JAPANESE INVESTORS WILL GET CONTROL OF THREE SOCALLED GATEWAYS OR REGIONAL LINKS INTO THE SYSTEM MR SEMMOTO SAID THE GROUP WILL CONTROL THE GATEWAY FOR JAPAN BUT SAID IT HADN'T YET BEEN DECIDED WHAT OTHER REGIONS THE JAPANESE INVESTORS WILL GET CRITICS HAVE ATTACKED THE IRIDIUM SYSTEM SAYING IT'S TOO EXPENSIVE AND THAT THE ADVANCE OF MORE CONVENTIONAL TECHNOLOGIES WILL MAKE THE MOTOROLALED PROJECT OBSOLETE BY THE TIME IT ACTUALLY STARTS WORKING BUT MOTOROLA WHICH IS EXPECTED TO RETAIN A 15 SHARE OF THE PROJECT SAYS IT IS WINNING BACKERS IT HAS SAID IT WILL GET ITS DESIRED FINANCING BY THE FIRST HALF OF THIS YEAR 9304020056 930402 BUSINESS BRIEF PANHANDLE EASTERN CORP CONCERN TO FORM PARTNERSHIP WITH WESTERN GAS RESOURCES PANHANDLE EASTERN CORP OF HOUSTON AND WESTERN GAS RESOURCES INC OF DENVER HAVE SIGNED A LETTER OF INTENT TO FORM A PARTNERSHIP WHICH WILL PROVIDE NATURAL GAS GATHERING AND PROCESSING SERVICES TO PRODUCERS IN ANADARKO BASIN IN OKLAHOMA EACH COMPANY WILL CONTRIBUTE CERTAIN PIPELINE AND GAS PROCESSING FACILITIES WESTERN GAS WILL BE THE OPERATOR OF THE COMBINED ASSETS THE COMPANIES EXPECT TO INCREASE GAS THROUGH OUTPUT AND PROVIDE ADDITIONAL GATHERING PROCESSING AND MARKETING SERVICES TO THOSE PRODUCERS SEPARATELY PANHANDLE EASTERN COMPLETED ITS SALE OF THE WATTENBERG NATURAL GAS GATHERING AND TRANSMISSION SYSTEM TO KN ENERGY INC OF LAKEWOOD COLO FOR 48 MILLION THE 1310MILE PIPELINE SYSTEM LOCATED NORTHEAST OF DENVER ISN'T CONTIGUOUS WITH OTHER PANHANDLE FACILITIES 9304020055 930402 REVIEW & OUTLOOK EDITORIAL TIMBER AND OTHER LOUD NOISES ONE OF BILL CLINTON'S GIFTS SOME WOULD SAY HIS CONCEITS IS HIS CONFIDENCE THAT HE CAN MOVE NEARLY ANYBODY OVER TO HIS POSITION OR AT LEAST FAR ENOUGH TO REACH A COMPROMISE IN HIS TREK TO THE PACIFIC NORTHWEST TODAY FOR A TIMBER SUMMIT THE PRESIDENT IS PUSHING HIMSELF ON A HOST OF WESTERN RESOURCE QUESTIONS COMMON GROUND IS SCARCE WE SUSPECT THAT'S BECAUSE ONE PARTY TO THE DISPUTE THINKS THE EARTH IS SANCTIFIED IT'S CLEAR THAT MUCH OF THE ENVIRONMENTALIST ENERGY IS DERIVED FROM WHAT HAS BEEN CALLED THE RELIGIOUS LEFT A SECULAR OR EVEN PAGAN FANATICISM THAT NOW WORSHIPS SUCH GODS AS NATURE AND GENDER WITH A REVERENCE FORMERLY ACCORDED REAL RELIGIONS AMID THIS TIDE MR CLINTON AND HIS INTERIOR SECRETARY BRUCE BABBITT ARE PROMOTING SOMETHING CALLED AN ECOSYSTEMWIDE APPROACH DESIGNED TO AVOID FUTURE NORTHWESTS THERE THE US'S LISTING OF AN ENDANGERED SUBSPECIES OF OWL ON TOP OF YEARS OF UNBALANCED TIMBER CUTTING HAS LEFT TOO LITTLE FOREST STOCK TO SUSTAIN THE WORKING POPULATION THANKS TO ENVIRONMENTAL LAWSUITS FEDERAL JUDGES RULE THE DAY PERHAPS THERE IS INDEED SOMETHING LEFT FOR THE SUMMIT TO LEARN FROM THAT BITTER EPISODE BUT TO BORROW A USEFUL PHRASE FROM SENATOR BOB DOLE REAL BULLETS ARE BEING FIRED NOW IN THE ECOWARS WE AREN'T TALKING ANYMORE ABOUT THE DISTANT COSTS OF BUILDING OR NOT BUILDING A DAM OR POWER PLANT BUT RATHER REAL FAMILIES' INCOMES THAT HARD POLITICAL TRUTH IS ALSO OBVIOUS WHEN YOU LEAVE THE PACIFIC FORESTS AND ENTER CALIFORNIA'S CENTRAL VALLEY WHERE WATER PROBLEMS NATURAL AND MANMADE ARE THE MAIN REASON FOR DEPRESSIONLEVEL UNEMPLOYMENT NUMBERS AND IN THE HOMEBUILDING BELT OF SOUTHERN CALIFORNIA A POLICY OF SALVAGING TINY CREATURES IS ONE MORE OBSTACLE FOR A REGION STRUGGLING TO REGAIN ITS SOCIAL AND ECONOMIC FOOTING THE CLINTONBABBITT ECOSYSTEM APPROACH TO HANDLING THE UNWIELDY ENDANGERED SPECIES ACT WHICH WAS JUST ANNOUNCED IN THE CASE OF THE GNATCATCHER BIRD IN THE COUNTIES NEAR LOS ANGELES AND SAN DIEGO IS THEORETICALLY AN IMPROVEMENT OVER THE COURT DECREES THAT JUDGES POUR FORTH LAND TRADEOFFS PRESUMABLY WILL ALLOW NEW GENERATIONS OF BIRD AND MAN TO COEXIST MEANTIME A YEAR OR SO OF BIOLOGICAL STUDY WILL PROCEED DURING WHICH VIRTUALLY NO ONE BUILDS THE BABBITT PLAN IS LIKELY TO SQUEEZE SMALLPARCEL OWNERS BECAUSE THEY HAVE THE LEAST FLEXIBILITY AND NO POLITICAL DEFENDERS IF THE CONSTRUCTION MARKET PICKS UP IN SOUTHERN CALIFORNIA SOME OWNERS WILL SCREAM WHEN THEY'RE PREVENTED FROM CASHING OUT THEIR LAND BY DEVELOPING THE ENVIRONMENTALISTS OF COURSE WILL BLOCK THEM BECAUSE THEY'VE INTRUDED UPON THE SACRED BREEDING GROUNDS OF THE GNATCATCHER THE LEAST TERN OR THE BELL'S VIREO SECRETARY BABBITT MAY YET RECEIVE AN INTRODUCTION TO THE CONSTITUTION'S TAKINGS CLAUSE MEANWHILE IT APPEARS THAT CONSTRUCTION CAN PROCEED ON CALIFORNIA'S SAN JOAQUIN HILLS TOLLWAY ALSO DELAYED FOR INTRUDING ON THE HOLY GNATCATCHER'S TURF THE LAST LAWSUIT HAS YET TO CLEAR IN THAT BATTLE A REMINDER THAT NO MATTER HOW MUCH GOODFAITH BARGAINING GOES INTO THIS NEW ECOSYSTEM PLANNING THE LITIGATORS WILL HAVE THEIR DAY IF HE DOUBTS IT PERHAPS SECRETARY BABBITT CAN SPEND TOMORROW SUMMITING OVER ANOTHER SOUTHERN CALIFORNIA SPECIES VS DEVELOPMENT CONTROVERSY INVOLVING THE STEVENS KANGAROO RAT AND LET'S NOT FORGET THE SANCTIFIED DOMAINS OF THE FISHES IN THE CENTRAL VALLEY WE GENUFLECT TO THE SALMON AND THE DELTA SMELT THE PRIORITY NOW ATTACHED TO THEIR WATER FLOW IS A PRIMARY REASON WHY FARMERS STILL FEEL DROUGHT IN A SEASON OF WETNESS CALIFORNIA AGRICULTURE HAS PROSPERED FROM IRRIGATION SUBSIDIES AND MUCH OF THIS CHANGE IS INEVITABLE BUT THE BLOWS ARE LANDING HEAVILY ON THE ECONOMY THE PROTECTED SALMON ALSO HAVE THE NORTHWEST'S ECONOMY TREADING WATER EVERYTHING FROM HYDROELECTRIC FACILITIES TO DAMMING FOR BARGES TO DEFORESTING SEDIMENT IS THOUGHT TO IMPERIL THEIR SPAWNING REMEMBER THE UNHAPPY RESULTS OF SALMON SUMMITS IN RECENT YEARS THEY DON'T BODE WELL FOR THE CLINTONBABBITT AGENDA INDEED THE PRESIDENT TRAVELS TO PORTLAND AT A TIME WHEN CONSUMERS ACROSS THE US ARE FEELING A PIECE OF THE ECONOMIC PAIN AT THE END OF THE OREGON TRAIL LUMBER PRICES ARE UP 70 OR MORE ENOUGH TO BE A FACTOR IN THE US RECOVERY ALTHOUGH PRICE SPIKES OF SOME SORT ARE TYPICAL IN A TURNAROUND PERIOD FOR HOME BUILDING THE IMPOSED SPOTTED OWL RESTRICTIONS ARE CLEARLY PLAYING A ROLE AS ARE LIMITS ON CANADIAN WOOD IMPORTS THAT WERE SLAPPED ON WHEN US MILLS WERE LANGUISHING IN WOOD AS IN NEARLY EVERY OTHER ITEM WE USE AND NEED INNOVATION CAN FIND A WAY AROUND SHORTAGE THE USE OF COMPOSITES BY COMPANIES SUCH AS TJ INTERNATIONAL IN BOISE IS ONE EXAMPLE IN THE TIMBERLANDS ENTERPRISES ARE ADJUSTING THEIR MILLS TO HANDLE YOUNGER LOGS AND HIRING PROCUREMENT FORESTERS TO COMB THE COUNTRYSIDE FOR FIVEACRE PLOTS INSTEAD OF WAITING ON A MASSIVE SALE FROM PUBLIC LANDS FURNITURE MAKERS ARE FINDING WAYS TO USE WEED SPECIES SUCH AS ALDER BUT THE MARKETPLACE THOUGH NATURALLY ADAPTIVE BENEFITS FROM PREDICTABILITY IN ITS BASIC RULES THE ENVIRONMENTAL UPHEAVAL NOW BEING VISITED UPON THE WEST BY THE RELIGIOUS LEFT HAS SHATTERED THAT HISTORICALLY PROPERTY RIGHTS HAVE BEEN THE ANCHOR OF PROSPERITY AS WELL AS OF PROPER RESOURCE USE THE CLINTON ADMINISTRATION NOW PROCLAIMS THAT IT CAN FIND ANOTHER WAY TO MOLLIFY BOTH OWNERS AND CLAIMANTS WE ARE FAR FROM BEING OUT OF THESE WOODS 9304020054 930402 INTERNATIONAL WORLD ECONOMY CLINTON GRASPS JAPAN TRADE PROBLEM AND MUST KEEP AN OPEN MIND TO SOLVE IT BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PRESIDENT SEEMED A BIT PEEVED BILL CLINTON IS ON TO SOMETHING AS MANY ACADEMIC AND BUSINESS SPECIALISTS COULD TELL HIM BUYING FROM JAPAN IS EASY BUT SELLING THERE CAN SEEM NEXT TO IMPOSSIBLE THERE IS GROWING IMPATIENCE HERE ABOUT A TRADE DEFICIT THAT REACHED 487 BILLION IN 1992 AND WILL GROW AGAIN THIS YEAR WORLDWIDE THE JAPANESE SURPLUS ROSE TO 1066 BILLION FROM 778 BILLION 40 BILLION OF THAT WITH THE EUROPEAN COMMUNITY THESE FIGURES ALSO WILL RISE IN 1993 POLITICAL PRESSURES PLUS HIS OWN INCLINATIONS MAKE IT LIKELY MR CLINTON WILL PLAY ROUGHER THAN DID PREVIOUS PRESIDENTS ONE TACTIC ALMOST CERTAINLY WILL BE EXTRA EMPHASIS ON SECTOR RESULTS A POLICY INHERITED FROM THEM THIS ASSUMES THAT COMPANIES DOING WELL ELSEWHERE OFTEN AGAINST JAPANESE RIVALS SHOULD DO ABOUT THE SAME INSIDE JAPAN IF THE RULES ARE FAIR IF NOT SOMETHING MAY NEED CORRECTING FOR EXAMPLE ROBERT KIRKWOOD OF HEWLETTPACKARD CO SAYS ONE OF HIS COMPANY'S PRODUCTS HAS ABOUT 60 OF THE US MARKET 90 IN EUROPE BUT ONLY 1 IN JAPAN THERE IS JAPANESE COMPETITION IN ALL THREE MARKETS WHY IS THE OUTCOME SO DIFFERENT IN JAPAN MR KIRKWOOD SUSPECTS SOMETHING UNFAIR AND UNACCEPTABLE ACCESS TO THE JAPANESE MARKET IS CRITICALLY IMPORTANT FOR COMPANIES LIKE HIS THAT SPEND SO HEAVILY ON RESEARCH HE SAYS FEW OF THEM CAN AFFORD TO DEVELOP PRODUCTS AND NOT HAVE ACCESS TO JAPAN MR CLINTON PROBABLY WILL TRY SETTING MORE MARKET SHARE QUOTAS FOR DIFFERENT PRODUCT SECTORS LIKE THE CURRENT 20 GOAL FOR SEMICONDUCTORS YET BASHING HARDER AT SECTORIAL PROBLEMS HAS ITS LIMITS EXPERTS WARN THEY CAUTION DON'T EXPECT TOO MUCH SECTORS CAN BE CRUCIAL TO INDIVIDUAL COMPANIES WHICH IS WHY THEY COMPLAIN THEY FEEL CONSTRAINED IN THE WORLD'S SECONDLARGEST ECONOMY WHILE FACING STIFF GLOBAL COMPETITION FROM ITS INDUSTRIES OFTEN FINANCED BY HUGE HOME PROFITS VENDORS OF FLAT GLASS PAPER PRODUCTS AND AUTO PARTS ARE AMONG THE MOST AGGRIEVED SECTORS BUT BETTER ACCESS ALONE WON'T REDRESS THE NATIONAL PROBLEM SEVERAL YEARS AGO THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON RESEARCH ORGANIZATION CONDUCTED A STUDY THAT CONCLUDED THAT THE DEFICIT WOULD REMAIN NEAR 25 BILLION EVEN IF THE US GOT EVERYTHING IT WAS THEN SEEKING FROM JAPAN FRED BERGSTEN THE IIE DIRECTOR SAYS IMPROVED US MARKET ACCESS ALONE CAN'T BALANCE THE TRADE DON'T FOCUS EXCLUSIVELY ON THE DEFICIT GLOBAL TRADE PATTERNS ARE COMPLEX WEAVES AND NO POLICY SHOULD BE BASED ON ANY SINGLE BILATERAL BALANCE DOING SO COULD DISTORT TRADE AND PERHAPS HARM THE FOREIGN INDUSTRIES THAT SEEK RELIEF FOR EXAMPLE FORD MOTOR CO CHAIRMAN HAROLD POLING WANTS TOKYO TO CUT THE US DEFICIT 20 ANNUALLY FOR FIVE YEARS JAPAN SHOULD MAKE ITS OWN DECISIONS AS TO HOW TO ACHIEVE THIS GOAL BY IMPORTING MORE OR EXPORTING LESS OR BOTH AND CHOOSE THE PRODUCTS WITH WHICH TO DO IT HE SAYS BUT MANY ANALYSTS DISAGREE THE COMPOSITION OF THE TRADE IS MUCH MORE IMPORTANT THAN THE DEFICIT'S SIZE SAYS CLYDE PRESTOWITZ DIRECTOR OF THE ECONOMIC STRATEGY INSITUTE AND A FREQUENT CRITIC OF TOKYO'S TRADING WAYS JAPAN COULD NARROW THE GAP HE SAYS BY BUYING EVEN MORE WASTE PAPER SCRAP ALUMINUM AND LOGS OR BY EXPORTING MORE LOWTECH GOODS FROM ITS OWN OFFSHORE FACTORIES BUT THAT WOULDN'T DO MUCH FOR US INDUSTRY POLICIES BASED ON THE NUMBER ALONE LACK INTELLECTUAL CREDIBILITY SAYS ANOTHER ECONOMIST DON'T UNDERESTIMATE THE COMPLEXITY DEFINING A SECTOR CAN BE HARD SAYS MARCUS NOLAND A JAPAN SPECIALIST AT THE IIE IT IS DIFFICULT TO DO WHEN PRODUCTS ARE HIGHLY DIFFERENTIATED AS WITH MEDICAL EQUIPMENT HE SAYS SHOULD DENTAL DRILLS AND CAT SCANNERS BE COMBINED AND SHOULD THE US RETALIATE IF IT GAINS MARKET SHARE FOR ONE BUT NOT THE OTHER THE BIGGER THE SECTOR THE HARDER IT IS TO COORDINATE A POLICY HE WARNS ABOVE ALL DON'T FORGET THE CENTRAL ECONOMIC ISSUES ELIMINATING TRADE BARRIERS IS IMPORTANT BUT THE YEN EXCHANGE RATE AND JAPANESE GROWTH ARE MORE CRUCIAL TO GLOBAL PAYMENTS BALANCES THE IIE SAYS AN EXTRA 1 OF JAPANESE EXPANSION OR A 1 STRONGER YEN COULD CUT 5 BILLION FROM JAPAN'S PAYMENTS SURPLUS WITH ABOUT 1 BILLION OF THE BENEFIT GOING TO THE US ECONOMISTS ALSO WANT TOKYO TO RELY MORE ON CONSUMERLED EXPANSION WITH THE US CUTTING DEBT AND CONSUMPTION WHILE SAVING AND INVESTING MORE MOST AMERICANS STILL FAIL TO GRASP THE FACT THAT THEY ARE DEBTORS NOT CREDITORS IN THE GLOBAL ECONOMY WHO DEPEND ON AN INFLOW OF FOREIGN RESOURCES TO SUPPORT THEIR LIVING STANDARDS WRITES BARRY BOSWORTH OF THE BROOKINGS INSTITUTION IN A NEW BOOK ON TRADE PROBLEMS 9304020053 930402 BUSINESS BRIEF WESTINGHOUSE ELECTRIC CO CONTRACT SIGNED WITH GROUP FOR DESIGN OF NUCLEAR PLANTS WESTINGHOUSE ELECTRIC CO PITTSBURGH SAID IT SIGNED A CONTRACT WITH A US UTILITY CONSORTIUM TO INVEST 158 MILLION OVER FIVE YEARS TO DEVELOP A SAFER STANDARDIZED DESIGN FOR NUCLEAR POWER PLANTS THE CONTRACT FORMALIZES A PREVIOUSLY REPORTED ARRANGEMENT TO FUND SEPARATE DESIGNS BY WESTINGHOUSE AND GENERAL ELECTRIC CO WESTINGHOUSE SAID THE CONTRACT CALLS FOR 16 UTILITIES ORGANIZED INTO ADVANCED REACTOR CORP TOGETHER WITH THE DEPARTMENT OF ENERGY TO PROVIDE A MAJORITY OF THE 158 MILLION IN FUNDS FOR ITS 600MEGAWATT PRESSURIZED WATER REACTOR THE REMAINDER IS TO COME FROM WESTINGHOUSE AND A NUMBER OF US AND FOREIGN PARTICIPANTS INCLUDING SOUTHERN CO AN ATLANTA UTILITY SEVERAL US NUCLEAR CONTRACTORS FIVE US AND CANADIAN UNIVERSITIES AND UTILITIES AND AGENCIES IN JAPAN SPAIN ITALY AND INDONESIA 9304020052 930402 BUSINESS BRIEF MARTIN MARIETTA CORP DEFENSE CONTRACTOR CLEARS HURDLE TO ACQUIRE GE UNIT MARTIN MARIETTA CORP SAID THE JUSTICE DEPARTMENT HAS CLEARED ITS PROPOSED 305 BILLION ACQUISITION OF GENERAL ELECTRIC CO'S AEROSPACE DIVISION MARTIN MARIETTA A DEFENSE CONTRACTOR BASED IN BETHESDA MD SAID IT INTENDS TO CLOSE THE TRANSACTION TODAY GE BASED IN FAIRFIELD CONN IS INVOLVED IN CONSUMER AND INDUSTRIAL PRODUCTS AND BROADCASTING THE JUSTICE DEPARTMENT HAD ASKED FOR ADDITIONAL INFORMATION FROM MARTIN MARIETTA IN THE COURSE OF ITS ANTITRUST REVIEW BUT A SPOKESMAN FOR MARTIN MARIETTA SAID THE DEPARTMENT DID NOT INDICATE THAT IT HAD ANY PROBLEMS WITH APPROVING THE PURCHASE SEPARATELY MARTIN MARIETTA SAID IT SIGNED AN AGREEMENT WITH RAYTHEON CO OF LEXINGTON MASS TO DELIVER PATRIOT AIRDEFENSE MISSILES LAUNCHERS AND RELATED EQUIPMENT AND SERVICES TO SAUDI ARABIA KUWAIT AND THE US ARMY MARTIN MARIETTA VALUED THE AWARD AT MORE THAN 300 MILLION FINAL DETAILS AND THE EXACT NUMBER OF MISSILES ARE STILL UNDER NEGOTIATION A SPOKESMAN SAID 9304020051 930402 FOREIGN EXCHANGE RISING US JOBLESS FIGURE DRIVES DOWN DOLLAR TO RECORD LOW AGAINST THE YEN BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK ALREADY SKEPTICAL ABOUT THE FLAGGING DOLLAR'S CHANCES FOR A REBOUND INVESTORS WERE DISHEARTENED BY BEARISH US ECONOMIC DATA THURSDAY AND DROVE THE CURRENCY SHARPLY LOWER THE DOLLAR FELL TO A RECORD LOW OF 11375 YEN BELOW ITS PREVIOUS POSTWORLD WAR II LOW OF 11463 YEN SET WEDNESDAY THE US CURRENCY ALSO DROPPED AGAINST THE MARK TO ITS LOWEST LEVEL IN TWO MONTHS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15915 MARKS DOWN FROM 16060 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11430 YEN DOWN FROM 11475 YEN STERLING WAS TRADING AT 15305 UP FROM 15150 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 15923 MARKS AND AT 114 YEN PLAYERS SAID HIGHERTHANEXPECTED WEEKLY US JOBLESS CLAIMS WERE THE LARGEST FACTOR BEHIND THE DOLLAR'S DECLINE THURSDAY EVERYONE HEADED FOR THE EXITS AFTER THE JOBLESS DATA WERE RELEASED SAID ALFONSO ALEJO A VICE PRESIDENT IN CORPORATE FOREIGN EXCHANGE AT SAKURA BANK LTD INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ON A SEASONALLY ADJUSTED BASIS ROSE 33000 IN THE WEEK ENDED MARCH 27 TO 380000 THE US DEPARTMENT OF LABOR REPORTED THIS WAS THE HIGHEST LEVEL OF INITAL CLAIMS SINCE THE WEEK OF NOV 7 1992 THE REPORT DIFFERED STRONGLY FROM MARKET EXPECTATIONS A SURVEY OF 13 ECONOMISTS BY THE DOW JONES INTERNATIONAL NEWS SERVICE HAD ANTICIPATED A 3000 DROP IN CLAIMS THE MARKET REACTED SHARPLY AND QUICKLY TO THE JOBLESS REPORT AGAINST THE MARK THE DOLLAR LOST MORE THAN A PFENNIG DURING THE 30 MINUTES FOLLOWING RELEASE OF THE DATA THE DOLLAR'S LOW FOR THE DAY OF 15893 MARKS WAS ITS LOWEST LEVEL SINCE JAN 29 WHEN IT TOUCHED 15820 MARKS COUPLED WITH THE JOBLESS DATA A SOMEWHAT WEAKERTHANEXPECTED REPORT FROM THE US NATIONAL ASSOCIATION OF PURCHASING MANAGERS ALSO CONTRIBUTED TO THE DOLLAR'S FALL PLAYERS SAID THE GROUP'S PURCHASING MANAGERS' INDEX A PERFORMANCE GAUGE OF THE U S MANUFACTURING SECTOR FELL IN MARCH TO 534 FROM 558 IN FEBRUARY A READING ABOVE 50 INDICATES THE US MANUFACTURING ECONOMY IS GENERALLY EXPANDING UNDER 50 INDICATES IT'S GENERALLY DECLINING THE MARKET HAD BEEN LOOKING FOR A SMALLER DECLINE SAID MICHAEL SCHAEFER FOREIGN EXCHANGE MANAGER AT NORWEST BANK CORP IN MINNEAPOLIS HENCE THE REPORT'S NEGATIVE IMPACT ON THE DOLLAR THE DECISION BY GERMANY'S BUNDESBANK THURSDAY TO LEAVE ITS KEY INTEREST RATES UNCHANGED AS WELL AS CONTINUED STRONG BUYING OF THE YEN IN JAPAN ALSO ENCOURAGED THE DOLLAR'S FALL PLAYERS SAID A LOT OF SMALL THINGS OCCURRED DURING THE DAY SAID NORWEST'S MR SCHAEFER ADDING YOU THROW THEM ALL TOGETHER AND YOU END UP WITH A LOWER DOLLAR PLAYERS SAID THURSDAY'S DEVELOPMENTS OCCURRED AGAINST A BACKDROP OF INCREASINGLY NEGATIVE SENTIMENT TOWARD THE DOLLAR A LOT OF PEOPLE WHO WERE LONGTERM BULLISH ON THE DOLLAR ARE STARTING TO TURN AROUND NOW MR SCHAEFER SAID THIS IS A MAJOR RETRACEMENT 9304020050 930402 BUSINESS BRIEF RCL ACQUISITION CORP COMPANY TO ACQUIRE HRM FOR 233 MILLION IN STOCK RCL ACQUISITION CORP AN INVESTMENT VEHICLE SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE HRM HOLDINGS CORP PARENT OF A MAKER AND DUPLICATOR OF AUDIO AND VIDEO CASSETTE TAPES HRM'S MANUFACTURING UNIT HAS ENTERED INTO A LETTER OF INTENT TO ACQUIRE AN EXISTING COMPACTDISK MANUFACTURING FACILITY WITH ANNUAL PRODUCTION CAPACITY OF ABOUT 40 MILLION UNITS TERMS CALL FOR RCL TO ISSUE FOUR MILLION COMMON SHARES TO HRM SHAREHOLDERS WHO WILL THEN HOLD ABOUT TWOTHIRDS OF THE MERGED COMPANY'S 62 MILLION SHARES IN OVERTHECOUNTER TRADING YESTERDAY RCL STOCK WAS AT 58125 A SHARE AT THAT PRICE THE TRANSACTION WOULD HAVE AN INDICATED VALUE OF 233 MILLION RCL WHICH RAISED ALMOST 7 MILLION IN AN INITIAL PUBLIC OFFERING LAST YEAR SAID IT WILL USE FUNDS TO PAY DOWN PART OF HRM'S DEBT AS WELL AS TRANSACTION EXPENSES RCL SAID ON A PROFORMA BASIS THE COMBINED COMPANY WOULD HAVE HAD NET INCOME OF 27 MILLION ON REVENUE OF 471 MILLION IN THE YEAR ENDED JAN 24 IN THE YEAR ENDED LAST JULY HRM HAD NET OF 18 MILLION ON REVENUE OF 407 MILLION 9304020049 930402 BUSINESS BRIEF IDB COMMUNICATIONS GROUP INC UNIT TELEFONOS DE MEXICO SIGN GLOBALSERVICES PACT IDB COMMUNICATIONS GROUP INC SAID ITS IDB WORLDCOM UNIT SIGNED AN OPERATING AGREEMENT WITH TELEFONOS DE MEXICO SA TO OFFER INTERNATIONAL TELEPHONE SERVICES TO MEXICO TERMS WEREN'T DISCLOSED THOUGH IDB SAID IT EXPECTS THE AGREEMENT WILL INCREASE ITS ANNUAL EARNINGS BY 12 CENTS A SHARE TO 15 CENTS A SHARE HOWEVER BECAUSE IT WILL TAKE A FEW MONTHS FOR THE SERVICES TO BE OPERATIONAL THE IMPACT ON THIS YEAR'S EARNINGS WILL ONLY BE BETWEEN THREE CENTS A SHARE AND FIVE CENTS A SHARE IDB SAID LAST YEAR IDB HAD NET INCOME OF 85 MILLION OR 76 CENTS A SHARE ON REVENUE OF 1553 MILLION IDB BASED IN LOS ANGELES IS A SUPPLIER OF SATELLITE TRANSMISSION AND DISTRIBUTION SERVICES FOR RADIO TELEVISION AND DATAVOICE INDUSTRIES 9304020048 930402 MEDIA FCC ANGERS CABLE FIRMS AIDS NETWORKS BILLIONDOLLAR ROLLBACK IS SET FOR CABLE RATES BY JEANNE SADDLER AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL THE FEDERAL COMMUNICATIONS COMMISSION YESTERDAY ESSENTIALLY ORDERED A BILLIONDOLLAR ROLLBACK IN EVERCLIMBING CABLE RATES AS IT ADOPTED THE MOST SWEEPING PRICE RESTRAINTS ON THE CABLE INDUSTRY IN NEARLY A DECADE CABLE OPERATORS HAD DREADED THE POSSIBLE COURSE THE FCC MIGHT TAKE AS IT IMPLEMENTED RULES YESTERDAY FOR ENFORCING THE 1992 CABLE ACT CONGRESS PASSED THE LAW OVER THE VETO OF PRESIDENT BUSH LAST OCTOBER AMID A RISING TIDE OF HARSH CRITICISM OF CABLE PRICING SUPPOSED ANTICOMPETITIVE PRACTICES AND SOMETIMES SHODDY CUSTOMER SERVICE THE FCC YESTERDAY DELIVERED ITS FIRST BLOW IT BASICALLY WIPED OUT ANY PRICE INCREASES THE CABLE INDUSTRY HAD PASSED SINCE THE END OF LAST SEPTEMBER AND SET A FORMULA FOR ESTABLISHING NEW BASICRATE CEILINGS IN VARIOUS MARKETS THAT WOULD FORCE THE CABLE SYSTEMS THAT HAVE EXCEEDED THE LOCAL CEILINGS TO TRIM THEIR RATES BY 10 OR MORE THE FEDERAL PANEL FURTHER TOOK AIM AT ANOTHER POPULAR METHOD BY WHICH CABLE OPERATORS OFTEN RAISE PRICES FORBIDDING SYSTEMS FROM THEIR PAST PRACTICE OF BUNDLING CHARGES FOR REMOTE CONTROLS CABLE BOXES INSTALLATION FEES AND THE LIKE NOW THOSE CHARGES MUST BE SEPARATE AND MUST BE BASED ON ACTUAL COST AS DEFINED BY FCC STANDARDS WHICH HAVE YET TO BE IRONED OUT THOSE MOVES RESULTED IN A CHARACTERISTIC SPLIT BETWEEN THE TWO SIDES OF THE LONGFESTERING CABLE DEBATE THE CABLE INDUSTRY LASHED OUT AT YESTERDAY'S DECISION AS ONEROUS AND UNWARRANTED WHILE ANTICABLE ACTIVISTS CRITICIZED THE FCC FOR FAILING TO GO FAR ENOUGH ON THE CABLE SIDE ROBERT THOMSON A SENIOR VICE PRESIDENT AT TELECOMMUNICATIONS INC THE LARGEST US CABLE COMPANY CALLS THE RULES UNDULY HARSH AND IN SOME RESPECTS PUNITIVE HE ADDED TCI BELIEVES THE FCC HAS TESTED THE OUTER LIMITS OF ITS AUTHORITY UNDER THE 1992 CABLE ACT SOME CABLE SYSTEMS IMPOSED STEEP INCREASES IN THE MONTHS AFTER THE LAW PASSED AND THE FCC'S ACTION YESTERDAY COULD RESULT IN EVEN BIGGER RATE ROLLBACKS FOR CUSTOMERS IN THOSE AREAS THE FCC SET A NEW FORMULA TO DETERMINE REASONABLE RATES FOR CABLE SERVICE BASED ON RATES CHARGED IN SELECTED MARKETS AS OF LAST SEPT 30 COMPANIES WITH RATES ABOVE THAT BENCHMARK COULD BE FORCED TO REDUCE THEM BY AS MUCH AS 10 FCC OFFICIALS SAID THE ACTION SHOULD PRODUCE 1 BILLION IN RATE CUTS FOR CONSUMERS BUT THEY REFUSED TO ESTIMATE HOW MUCH AVERAGE RATES MIGHT DROP PER CABLE SYSTEM BY SOME ESTIMATES HOWEVER AN AVERAGE MONTHLY RATE OF 20 LAST FALL COULD DROP AS LOW AS 18 BY THIS FALL THE COMMISSION SAYS TWOTHIRDS TO THREEFOURTHS OF ALL CABLE SUBSCRIBERS AND COMPANIES WILL BE AFFECTED BIGGER RATE CUTS COULD BE ON THE HORIZON ACTING FCC COMMISSION CHAIRMAN JAMES QUELLO CALLED THE ACTION A CAREFULLY REASONED FIRST STEP LAWMAKERS WHO LED THE FOURYEAR BATTLE TO REGULATE THE 22 BILLION INDUSTRY VOWED TO PRESS FOR FURTHER ACTION WHILE SOME CONSUMERS WILL GET A 10 RATE REDUCTION OTHERS DESERVE MUCH MORE SAID SEN ERNEST HOLLINGS THE SOUTH CAROLINA DEMOCRAT WHO WAS THE CHIEF AUTHOR OF THE CABLE ACT I'M GOING TO WORK TO ENSURE THE FCC ENACTS THE FULL LETTER OF THE LAW SOME PROPONENTS OF CABLE REGULATION ARGUE THAT DEEPER CUTS CAN BE JUSTIFIED THIS IS REALLY A SLAP ON THE WRIST TO THE INDUSTRY SAID GENE KIMMELMAN LEGISLATIVE DIRECTOR OF THE CONSUMER FEDERATION OF AMERICA WHO LOBBIED FOR THE CABLE LAW AND HAD HOPED FOR A 30 RATE REDUCTION WE SAY IT'S A FIRST STEP IN THE RIGHT DIRECTION IT'S THE FIRST REAL COST SAVINGS TO CONSUMERS THAT'S COME OUT OF THE COMMISSION IN A DECADE MR KIMMELMAN ESTIMATED THAT ONETHIRD TO ONEHALF OF ALL CABLE CUSTOMERS WILL GET A 10 RATE CUT THE SAVINGS FROM THE NEW RULES MAY NOT AMOUNT TO LUNCH MONEY FOR MOST AMERICANS NONETHELESS THEY AMOUNT TO A STRONG ADMONISHMENT BY THE FCC OF THE CABLETV INDUSTRY'S UNCHECKED PRICE INCREASES OVER THE PAST SIX YEARS THAT COULD MEAN SWEET REVENGE FOR SOME OF THE MORE IRRITATED MEMBERS OF THE NATION'S 57 MILLION CABLETELEVISION HOUSEHOLDS MOREOVER THE FCC ACTION MAY EMBOLDEN LOCAL GOVERNMENTS TO TAKE A HARD LOOK AT ANY FUTURE PRICE INCREASES BY THEIR CABLE OPERATORS WE NOW HAVE THE LOCAL TOOLS BACK THAT WE HAVE DESPERATELY BEEN SEEKING SAID DAVID OLSON PRESIDENT OF THE NATIONAL ASSOCIATION OF TELECOMMUNICATIONS OFFICERS AND ADVISORS A NATIONAL GROUP OF MUNICIPAL REGULATORS FOLKS IN CABLE MARKETS NATIONWIDE CAN LOOK FORWARD TO RELIEF SOME WILL SURELY WANT SOME RELIEF RATES FOR THE MOST POPULAR BASIC SERVICE JUMPED 61 IN THE FOUR YEARS FOLLOWING DEREGULATION WHICH STARTED IN LATE 1986 ACCORDING TO A STUDY BY THE GENERAL ACCOUNTING OFFICE THE INVESTIGATIVE ARM OF CONGRESS WILLIAM SQUADRON NEW YORK'S TELECOMMUNICATIONS COMMISSIONER EXPECTS THAT THE NEW GUIDELINES COULD SAVE THE CITY'S 850000 SUBSCRIBERS AS MUCH AS 10 MILLION OVER THE COURSE OF A YEAR OR ABOUT 1 ON A MONTHLY BILL OF ABOUT 23 HE SAYS CABLETV RATES HAVE JUMPED ABOUT 30 IN NEW YORK OVER THE PAST THREE YEARS WE'VE SAID ALL ALONG THAT WE FEEL RATE INCREASES IN NEW YORK AND NATIONALLY HAVE BEEN FAR BEYOND A COMPETITIVE RATE HE SAYS UNTIL THESE COMPANIES GET COMPETITION YOU CAN'T LEAVE CONSUMERS VULNERABLE TO A SINGLE PROVIDER NOW WE'LL HAVE REAL RESTRAINTS ON RATES GOING FORWARD THAT'S THE KIND OF PROTECTION WE NEED BUT CABLETELEVISION OPERATORS ACROSS THE COUNTRY DECRIED THE NEW FCC PROVISIONS AS UNJUST RESTRICTIONS ON THEIR BUSINESS THE NEW RULES SENT A WAVE OF APPREHENSION THROUGH AN INDUSTRY THAT IS POISED TO SPEND BILLIONS OF DOLLARS ON NEW TECHNOLOGIES SUCH AS FIBER OPTICS AND DIGITAL COMPRESSION THAT PROMISE TO GIVE VIEWERS HUNDREDS OF NEW CHANNELS MOVIES ON DEMAND AND INTERACTIVE SERVICES IN THE NEXT FIVE YEARS OR MORE THIS HAS BEEN DONE WITH A MEAT AX WHEN THEY SHOULD HAVE USED A PARING KNIFE ROBERT J SACHS A SENIOR VICE PRESIDENT AT CONTINENTAL CABLEVISION INC SAYS OF THE FCC ACTION LOPPING OFF A BILLION DOLLARS FROM CURRENT RATES WILL HAVE SUBSTANTIAL IMPACT ON OUR PROGRAMMING TECHNOLOGY INVESTMENTS AND IN THE END WILL NOT BE A BENEFIT TO CONSUMERS AND AT LEAST INITIALLY YESTERDAY WALL STREET SEEMED TO AGREE IN PART IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY TIME WARNER INC STOCK DROPPED 1625 TO 33125 TELECOMMUNICATIONS SHARES FELL 2 TO 2050 AND COMCAST CORP STOCK DROPPED 250 TO 20875 THE COMMISSION ALSO VOTED TO FREEZE ALL CURRENT RATES CHARGED BY CABLETELEVISION COMPANIES FOR 120 DAYS WHILE THE NEW REGULATORY SYSTEM IS BEING PUT IN PLACE MOST CABLETV CHANNELS WILL BE INCLUDED IN THE NEW REGULATORY SCHEME EXCEPT FOR PREMIUM OR PAYPERVIEW CHANNELS LOCAL AUTHORITIES CAN BE CERTIFIED BY THE FCC TO REGULATE THE BASIC TIER OF CABLETELEVISION SERVICE WHICH INCLUDES BROADCAST AND PUBLICACCESS CHANNELS BUT THE NEW RULES WILL ALSO COVER THE EXPANDED TIERS WHICH INCLUDE POPULAR CHANNELS SUCH AS MTV ESPN OR CNN BUT THE FCC WILL INVESTIGATE RATES CHARGED FOR THESE EXPANDED BASIC TIES WHEN IT RECEIVES CONSUMER COMPLAINTS DIRECTLY THE AGENCY IS DEVISING A FORM TO BE USED IN THE COMPLAINT PROCESS MANY CABLETV COMPANIES CONTEND THAT THEY STILL OFFER A GOOD SERVICE AT A FAIR PRICE AND THAT MOST RECENT INCREASES HAVE BEEN MARGINAL NO ONE SHOULD LOSE SIGHT OF THE MOST IMPORTANT FACT THAT THESE RULES REGULATE THE PAST NOT THE FUTURE SAYS MICHAEL LUFTMAN A VICE PRESIDENT OF THE TIME WARNER CABLE UNIT OF TIME WARNER THIS INDUSTRY IS THE BESTPOSITIONED BUSINESS IN AMERICA TO DELIVER THE NEXT GENERATION OF COMMUNICATIONS SERVICES NOTHING THAT THE FCC HAS DONE TODAY HAS ANY BEARING ON THAT THE FCC ALSO ADOPTED RULES THAT REQUIRE CABLE PROGRAMMERS TO MAKE THEIR PROGRAMMING AVAILABLE TO CABLE COMPETITORS SUCH AS DIRECTBROADCAST SATELLITE COMPANIES UNDER THE SAME PRICES AND CONDITIONS MANY IN THE CABLETELEVISION INDUSTRY HINTED THAT THE RULES MAY BE CHALLENGED EITHER AT THE FCC OR POSSIBLY IN COURT WE'RE OBVIOUSLY GOING TO COMPLY AFTER WE KNOW WHAT CONSTITUTES COMPLIANCE SAYS JAMES P MOONEY PRESIDENT OF THE NATIONAL CABLE TELEVISION ASSOCIATION IF HOWEVER AS MAY BE THE CASE THE COMMISSION'S ACTIONS EXCEED ITS AUTHORITY UNDER THE STATUTE I HAVE NO DOUBT THAT THESE ISSUES ULTIMATELY WILL END UP IN THE COURTS AS PART OF ITS ACTION THE FCC SAID IT WILL INVESTIGATE CABLETV COMPANIES WHOSE PRICES ARE SUBSTANTIALLY ABOVE ITS BENCHMARK FOR REASONABLE RATES AND FORCE THEM TO JUSTIFY THOSE RATES OR FACE FURTHER REGULATION SOME SMALL CONCERNS OPERATING IN RURAL AREAS FOR EXAMPLE ARGUE THAT THEIR RATES ARE HIGH SIMPLY BECAUSE THEIR COSTS ARE HIGHER THAN OTHER COMPANIES THOUGH THE NEW LAW REQUIRES REFUNDS TO CONSUMERS CABLETELEVISION RATES WON'T DROP AUTOMATICALLY LOCAL AUTHORITIES MUST ASK A CABLETV COMPANY TO REPORT ITS RATES AND COSTS THE COMPANY WILL BE TOLD WITHIN 30 DAYS WHETHER IT MEETS FCC GUIDELINES OR THAT THE LOCAL AGENCY NEEDS MORE TIME TO DECIDE THE ISSUE WHEN THE DECISION IS MADE A CABLETELEVISION COMPANY COULD BE REQUIRED TO CUT ITS RATES AND REFUND MONEY TO ITS CUSTOMERS OFFICIALS ESTIMATE THAT THE SMALL AGENCY WILL SPEND AN EXTRA 12 MILLION THIS FISCAL YEAR AND ABOUT 16 MILLION IN FISCAL 1994 REGULATING THE INDUSTRY SEE RELATED ARTICLE RERUN PROFITS COULD ENRICH BIG BROADCASTERS WSJ APRIL 2 1993 9304020047 930402 CREDIT RATINGS AMERICAN EXPRESS CO NEW YORK RECEIVED A LOWER RATING FROM STANDARD & POOR'S CORP ON ITS 450 MILLION OF ZEROCOUPON DEBT THE DOWNGRADE BROUGHT THE RATING IN LINE WITH OTHER COMPANY DEBT RECENTLY DOWNGRADED LOWERED TO SINGLEAPLUS FROM DOUBLEAMINUS ARE ZEROCOUPON SECURED EURONOTES DUE 2000 ISSUED BY THE TRAVEL AND FINANCIALSERVICES CONCERN AND BY SEVERAL SUBSIDIARIES THE NOTES ARE BACKED BY AMERICAN EXPRESS'S 51STORY HEADQUARTERS BUILDING IN NEW YORK'S WORLD FINANCIAL CENTER SANTA FE ENERGY RESOURCES INC HOUSTON STANDARD & POOR'S SAID IT RAISED ITS RATINGS ON ABOUT 500 MILLION OF PREFERRED STOCK OF THIS ENERGY CONCERN S&P INCREASED THE RATINGS TO SINGLEB FROM SINGLEBMINUS THE RATINGS SERVICE CITED AN AMENDMENT TO A DIVIDEND COVENANT THAT INCREASED THE RESOURCES AVAILABLE FOR DIVIDEND PAYMENTS AND AN IMPROVEMENT IN THE CAPITAL STRUCTURE ACCORDING TO S&P SANTA FE ENERGY AN INDEPENDENT OIL AND GAS EXPLORATION AND PRODUCTION COMPANY HAS USED INTERNAL CASH GENERATION AND PROCEEDS FROM ASSET SALES TO REDUCE DEBT LEVELS THE RATINGS OUTLOOK IS STABLE BECAUSE THE CUSHION UNDER THE NEW DIVIDEND COVENANT HAS BEEN INCREASED TO ABOUT 52 MILLION BUT GIVEN SANTA FE'S CONCENTRATION OF RESERVES IN LESS PROFITABLE HEAVY OIL THIS CUSHION COULD BE REDUCED SHOULD HEAVY OIL PRICES WEAKEN S&P SAID THE RATING ANTICIPATES THAT SANTA FE COULD RENEGOTIATE THE DIVIDEND COVENANT BEFORE IT WOULD BE REQUIRED TO ELIMINATE PREFERRED DIVIDENDS S&P SAID 9304020046 930402 VENTURA BANCORP UNITS GET STIFF NEW RULES AFTER REVIEW BY US OXNARD CALIF FEDERAL REGULATORS IMPLEMENTED STIFF NEW REQUIREMENTS FOR VENTURA COUNTY NATIONAL BANCORP'S TWO BANKING SUBSIDIARIES THE COMPANY SAID THAT A REVIEW BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY OF THE COMPANY'S VENTURA COUNTY NATIONAL BANK AND FRONTIER BANK UNITS FOUND SEVERAL VIOLATIONS FOLLOWING THE REVIEW THE COMPANY ENTERED INTO A FORMAL AGREEMENT WITH THE FEDERAL AGENCY AGREEING TO CORRECT VIOLATIONS AT VENTURA COUNTY NATIONAL BANK IT ALSO ENTERED INTO A CONSENT ORDER AGREEING TO DEVELOP A PROGRAM TO IMPROVE ASSET DIVERSIFICATION AT FRONTIER THAT ORDER ALSO REQUIRES FRONTIER AS OF MAY 31 TO MANTAIN A SOCALLED TIER 1 CAPITAL RATIO OF 95 AND A LEVERAGE RATIO OF 7 AS OF MARCH 31 THE BANK HAD A TIER 1 CAPITAL RATIO OF 872 AND A LEVERAGE RATIO OF 698 THE AGENCY ALSO CALLED FOR FRONTIER TO APPOINT A FULLTIME PRESIDENT AND CHIEF EXECUTIVE AS A RESULT COMPANY PRESIDENT WE MCALEER RESIGNED FROM HIS POSTS AT THE FRONTIER UNIT AND COMPANY CHAIRMAN JAMES B HUSSEY WAS ELECTED CHAIRMAN OF FRONTIER LARRY SALLINGER A FRONTIER EXECUTIVE WAS NAMED ACTING PRESIDENT AND CHIEF EXECUTIVE OF THE UNIT SEPARATELY THE COMPANY POSTED A SLIGHT DIP IN FIRSTQUARTER NET INCOME TO 518000 OR NINE CENTS A SHARE FROM 520000 OR NINE CENTS A SHARE A YEAR EARLIER 9304020045 930402 BUSINESS BRIEF MICROTEK MEDICAL INC COMPANY EXPECTS TO REPORT PROFIT IN FISCAL FIRST QUARTER MICROTEK MEDICAL INC EXPECTS TO REPORT FISCAL FIRSTQUARTER EARNINGS OF SLIGHTLY MORE THAN 330000 OR ABOUT SEVEN CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS KIMBER VOUGHT PRESIDENT AND CHIEF EXECUTIVE SAID IN THE YEAREARLIER QUARTER ENDED FEB 28 1992 THE COLUMBUS MISS COMPANY WHICH DESIGNS MANUFACTURES AND MARKETS SURGICAL AND MEDICAL SUPPLIES POSTED A LOSS OF 24000 OR THREE CENTS A SHARE FOR THE LATEST QUARTER MICROTEK EXPECTS TO REPORT THAT SALES ROSE MORE THAN 20 MR VOUGHT SAID TO MORE THAN 63 MILLION FROM 52 MILLION A YEAR EARLIER MR VOUGHT SAID MICROTEK IS COMFORTABLE WITH ANALYSTS' EARNINGS ESTIMATES FOR THE CURRENT FISCAL YEAR OF 65 CENTS TO 70 CENTS A SHARE FOR THE YEAR ENDED NOV 30 1992 MICROTEK REPORTED EARNINGS OF 37 MILLION OR 15 CENTS A SHARE ON SALES OF 258 MILLION 9304020044 930402 PRIMERICA IN UNUSUAL OFFERING RAISES 300 MILLION TO HELP PAY FOR SHEARSON BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRIMERICA CORP SHOWED A WAY AN ACQUISITION CAN BE DONE 1990S STYLE TO HELP PAY FOR ITS PENDING 1 BILLION TAKEOVER OF THE SHEARSON BROKERAGE UNIT OF AMERICAN EXPRESS CO PRIMERICA SAID IT RAISED THE FIRST 300 MILLION BY SELLING STOCK OVERSEAS THE COMPANY TOOK THAT ROUTE BECAUSE IT COULD RAISE THE MONEY QUICKLY BY NOT HAVING TO FILE WITH US SECURITIES REGULATORS THE SALE ALSO IS BEING MADE BEFORE PRIMERICA EVEN TAKES OVER THE SHEARSON UNIT THAT'S A LONG WAY FROM THE 1980S WHEN MANY COMPANIES WITH APPETITES BIGGER THAN THEIR WALLETS TURNED TO JUNK BOND KING MICHAEL MILKEN ARMED WITH A HIGHLY CONFIDENT LETTER PROMISING THAT MR MILKEN'S FIRM DREXEL BURNHAM LAMBERT & CO COULD RAISE MONEY FOR A TAKEOVER THE COMPANIES COULD PUT AN OFFER ON THE TABLE BEFORE THEY EVEN HAD THE CASH TIMES HAVE CHANGED ONLY STRONG COMPANIES CAN NOW ARRANGE TAKEOVERS ON THE PROMISE TO PAY AND WHILE COMPANIES HAVE USED STOCK OFFERINGS TO PAY OFF BANK DEBT THAT INITIALLY FINANCED THE ACQUISITION IT'S UNUSUAL FOR A COMPANY TO HOLD THE OFFERING BEFORE THE ACTUAL ACQUISITION IN TODAY'S MARKETS FINANCIAL STRENGTH HAS REPLACED HIGHLY CONFIDENT AS A DEAL CLINCHER PRIMERICA SAID IT SOLD SEVEN MILLION COMMON SHARES TO A GROUP LED BY THE INTERNATIONAL ARM OF MORGAN STANLEY GROUP INC THE SECURITIES WILL BE RESOLD OVERSEAS FOR 4275 TO 4325 A SHARE BUT PRIMERICA'S STOCKHOLDERS ARE PAYING A PRICE THE SHARES TUMBLED YESTERDAY TO 4475 DOWN 1375 ON THE NEWS BECAUSE THE OFFERING PRICE REPRESENTED A DISCOUNT TO PRIMERICA'S PRICE ON THE NEW YORK STOCK EXCHANGE AT THE TIME OF THE ANNOUNCEMENT ALTHOUGH THE DEAL WILL DILUTE PERSHARE EARNINGS SLIGHTLY THE STOCK PRICE SLUMPED LARGELY BECAUSE INSTITUTIONAL INVESTORS NOW HAVE A CHANCE TO SELL THEIR PRIMERICA HOLDINGS IN THE US AND BUY THE SHARES BACK ON OVERSEAS MARKETS FOR LESS A MORE TYPICAL WAY OF FINANCING THE DEAL WOULD HAVE BEEN TO RAISE MONEY IN THE US WHEN MARKET CONDITIONS WERE MOST FAVORABLE EITHER THROUGH A COMMON STOCK OFFERING OR BY OFFERING CONVERTIBLE PREFERRED SHARES ANALYSTS SAID PRIMERICA WAS WILLING TO SELL STOCK AT A DISCOUNT TO GET ITS HANDS ON THE MONEY FAST BY SELLING STOCK NOW IT DOESN'T HAVE TO WORRY ABOUT WHAT HAPPENS TO THE STOCK MARKET AND THE IMPACT ON ITS OWN STOCK PRICE BETWEEN NOW AND WHEN THE SHEARSON DEAL CLOSES THIS WAY IS VERY FAST IT'S VERY EFFICIENT AND IT'S DONE SAID JAMES HANBURY AN ANALYST WITH WERTHEIM SCHRODER TO HAVE RAISED THE MONEY IN THE US WOULD HAVE REQUIRED SECURITIES AND EXCHANGE COMMISSION APPROVAL AND A WAIT OF AS LONG AS EIGHT WEEKS WHEN PRIMERICA ANNOUNCED ITS PLANS TO BUY SHEARSON LAST MONTH IT SAID IT WOULD FINANCE THE MORE THAN 1 BILLION ACQUISITION BY RAISING 500 MILLION IN EQUITY AND 550 MILLION IN DEBT FOLLOWING YESTERDAY'S OFFERING PRIMERICA STILL MUST RAISE 200 MILLION IN A YETTOBEDETERMINED MANNER BUT THE HARDEST PART OF THE EQUITY FINANCING IS NOW BEHIND IT PRIMERICA ALSO HAS TO SELL THE DEBT BUT THAT SHOULD BE EASY FOR A COMPANY WITH A STRONG CREDIT RATING SUCH AS PRIMERICA IT COULD BE DONE IN AN HOUR OR LESS MR HANBURY SAID THIS IS A TERRIFIC CREDIT PRIMERICA HOPES TO HAVE THE TAKEOVER WRAPPED UP IN JULY ANALYSTS SAID THE EASE WITH WHICH PRIMERICA RAISED THE FIRST CHUNK OF EQUITY SHOWS INVESTORS ARE HIGH ON THE COMPANY IT'S A REFLECTION OF THE DEMAND FOR THE STOCK SAID KARLA NEWMAN AN ANALYST WITH STANDARD & POOR'S CORP PRIMERICA STOCK IS UP 39 SINCE JAN 1 9304020043 930402 ADVERTISING DISNEY PULLS ADS IN TIFF WITH TIME BY PATRICK M REILLY AND RICHARD TURNER STAFF REPORTERS OF THE WALL STREET JOURNAL AN AGGRESSIVE AD CAMPAIGN FOR THE SIX FLAGS AMUSEMENT PARKS TARGETING THEME PARK POWERHOUSE DISNEYLAND HAS REIGNITED A NASTY FEUD BETWEEN THEIR TWO GIANT CORPORATE PARENTS A NEW WAVE OF SPRINGTIME ADS FROM TIME WARNER'S SIX FLAGS THEME PARKS JABS POINTEDLY AT THE INDUSTRY LEADER MAKING SHARP AND HUMOROUS COMPARISONS WITH THE VENERABLE PLAYLANDS OF WALT DISNEY CO ONE AD THAT RAN IN THE DALLAS AREA HAS THE TAG LINE BIGGER THAN DISNEYLAND AND A WHOLE LOT CLOSER WHILE FAR FROM SLANDEROUS THE AD CAMPAIGN WHICH ACTUALLY BEGAN LAST SUMMER HAS PERSONALLY ANGERED NONE OTHER THAN DISNEY'S CHAIRMAN MICHAEL EISNER IN AN INTERVIEW YESTERDAY HE CALLED THE CAMPAIGN REASONABLY DESPICABLE MR EISNER WAS PARTICULARLY SET OFF BY A TV SPOT THAT SHOWS A CAGED AND DOWNTRODDEN FAMILY DOG OSTENSIBLY OWNED BY A FAMILY THAT FLEW TO DISNEYLAND A SIX FLAGS FAMILY'S DOG IS HAPPY AND FRISKY IN THE BACKYARD THE MESSAGE GET HOME IN TIME TO FEED YOUR DOG SO STEAMED IS MR EISNER THAT FOR MONTHS HE HAS PERSONALLY PREVAILED ON TIME WARNER CHAIRMAN GERALD LEVIN AND OTHER TIME WARNER EXECUTIVES SUCH AS WUNDERKIND ROBERT W PITTMAN TO HALT OR ALTER THE SIX FLAGS CAMPAIGN WHILE TIME WARNER TINKERED WITH SOME OF THE ADS THE CAMPAIGN'S CENTRAL THEME THAT SIX FLAGS IS ON A COMPETITIVE PAR WITH DISNEY'S LUSH PARKS WAS NEVER CHANGED THEY FINESSED US SAYS MR EISNER ABOUT THE CHANGES ADDING THAT THE CAMPAIGN ESCALATED ANEW AS SPRING VACATION APPROACHED SO MICKEY MOUSE INC RECENTLY REMOVED ITS WHITE GLOVES MR EISNER WIELDED THE MOST POTENT WEAPON HE COULD FIND PULLING A SMALL FORTUNE IN DISNEY PARK ADVERTISING FROM ALL TIME INC MAGAZINES DISNEY SHIFTED THOSE AD DOLLARS TO RIVALS NEWSWEEK AND US NEWS & WORLD REPORT WE'VE LEARNED A LOT ABOUT NEWSWEEK MR EISNER SAID DRILY IT'S A PRETTY GOOD MAGAZINE MR EISNER ADDED AT OUR COMPANY NO ONE'S ALLOWED TO OFFEND OUR CUSTOMERS THE RETRIBUTION CAMPAIGN COULD ESCALATE ALTHOUGH MR EISNER SAID DISNEY'S RELATIONSHIP WITH TIME WARNER'S ENTERTAINMENT UNIT WAS HEALTHY A HOST OF OTHER ALLIANCES BETWEEN THE TWO COMPANIES COULD BE AFFECTED INCLUDING AGREEMENTS FOR TIME WARNER TO DISTRIBUTE DISNEY'S RECORDS BOOKS AND MAGAZINES WHEN THEY EXPIRE UNTIL RECENTLY TIME WARNER DISTRIBUTED DISNEY FILMS IN THEATERS INTERNATIONALLY WE WILL CONTINUE TO FULFILL OUR CONTRACTUAL OBLIGATIONS MR EISNER SAID HOWEVER WHEN THEY EXPIRE WE WILL ANALYZE EACH OF THOSE CONTRACTS THE TUSSLE BETWEEN THE TWO ENTERTAINMENT GIANTS IS NOW EVEN DRAWING IN OTHER UNWITTING COMPANIES COCACOLA WHICH SUPPLIES BOTH SIX FLAGS AND DISNEY PARKS HAS FOUND ITSELF CAUGHT IN THE MIDDLE FOR PROMOTIONS IT HAS DONE WITH SIX FLAGS SOME OF THE TV SPOTS FOR SIX FLAGS END WITH A TAG LINE FROM COKE INSIDERS AT BOTH COMPANIES SAY DISNEY HAS OBJECTED TO COKE'S LENDING ITS NAME IF ONLY SELECTIVELY TO AN AD CAMPAIGN THAT COMPARES THE THEME PARKS DISNEY'S MR EISNER DESCRIBED COKE AS BEING STEAMED AT ITS INVOLVEMENT IN THE PROMOTIONS TIME WARNER EXECUTIVES DESCRIBE IT DIFFERENTLY SAYING THE SOFT DRINK COMPANY WAS SURPRISED BY DISNEY'S REACTION AND FEARS OFFENDING TWO MAJOR CLIENTS SO FAR THE ISSUE WITH COKE HASN'T BEEN RESOLVED A COCACOLA SPOKESMAN SAYS HE COULDN'T REACH ANY OF THE COMPANY'S EXECUTIVES WHO ARE FAMILIAR WITH THE THEME PARK ADVERTISING CONTROVERSY TIME WARNER EXECUTIVES REFUSED TO RESPOND TO DISNEY'S COMMENTS OR TO SPEAK ABOUT THE CAMPAIGN BUT TIME WARNER INSIDERS PRIVY TO RELATIONS WITH DISNEY SAY MR EISNER'S HUMORLESS RESPONSE HAS ONLY STRENGTHENED THEIR RESOLVE TO CONTINUE THE SIX FLAGS CAMPAIGN THEY WON'T MOVE US OFF THE DIME SAID ONE TIME WARNER EXECUTIVE SOME INDUSTRY EXECUTIVES SAY THE COMPARISON BETWEEN DISNEY PARKS AND SIX FLAGS TURF IS RIDICULOUS DISNEY IS THE UNDISPUTED KING OF THE CONCEPT WITH VIRTUALLY SPOTLESS AND EXPENSIVELYCONSTRUCTED PARKS ON PRIME REAL ESTATE DISNEY'S 1992 THEME PARKS AND RESORTS REVENUE WERE 331 BILLION SIX FLAGS' REVENUE WAS CONSIDERABLY LESS THAN 1 BILLION EVEN MR EISNER SAID THE FIGHT'S NOT FAIR TIME WARNER IS TAKING ITS SMALLEST DIVISION AND GOING AFTER OUR LARGEST HE SAID BUT SIX FLAGS CONSIDERS ITSELF A COMER WORTHY OF COMPARISON TO THE BIGGEST TIME WARNER EXPANDED ITS INTEREST TO 50 OF SIX FLAGS IN 1991 TIME WARNER HOWEVER HAS FULL OPERATING CONTROL UNDER THE DIRECTION OF MR PITTMAN CHAIRMAN OF SIX FLAGS AND ONE OF THE FOUNDERS OF MTV TIME WARNER HAS AGGRESSIVELY TRIED TO POSITION ITS SEVEN THEME PARKS AS FAMILYORIENTED RATHER THAN EXCLUSIVELY A HAVEN FOR THRILLSEEKING TEENAGERS THOUGH ITS PARK IN VALENCIA CALIF HAS HAD GANG INCIDENTS TO BRIGHTEN THINGS TIME WARNER HAS INTRODUCED ITS CARTOON CHARACTERS LIKE BUGS BUNNY AND DAFFY DUCK INTO THE PARKS SOME SAY DISNEY IS BEING TOO THINSKINNED SAYS ONE THEME PARK INDUSTRY EXECUTIVE DISNEY SHOULDN'T TAKE IT SO SERIOUSLY COMPARING SIX FLAGS TO DISNEY IS LIKE COMPARING A BMOVIE ACTOR TO DUSTIN HOFFMAN THEY DON'T COMPETE WITH EACH OTHER AND DISNEY SHOULD HAVE JUST IGNORED IT BUT MR EISNER HASN'T IN FACT IN HIS INTERVIEW HE LAMBASTED TIME WARNER'S CORPORATE DIRECTION AND ITS RELATIVELY NEW CHAIRMAN MR LEVIN REFERRING TO ITS FORMER CHAIRMAN THE LATE STEVE ROSS MR EISNER SAID STEVE WOULD HAVE HANDLED THIS DIFFERENTLY THEY'VE HAD LOTS OF PROBLEMS OTHER THAN US THAT MAY OR MAY NOT HAVE BEEN HANDLED WELL AND THAT STEVE WOULD HAVE HANDLED DIFFERENTLY MERCHANDISE CO SAID IT HAS SIGNED A MULTIMILLION DOLLAR ENDORSEMENT CONTRACT WITH COMEDIAN BILL COSBY AND PLANS TO PUT HIM IN ADS TIED TO ITS SPONSORSHIP OF THE RACE CAR TEAM OF WILLY T RIBBS MR RIBBS BECAME THE FIRST AFRICANAMERICAN TO COMPETE IN THE INDIANAPOLIS 500 IN 1991 SINCE THEN HE HAS HAD DIFFICULTY FINDING CORPORATE SPONSORSHIP DESPITE POPULARITY WITH FANS AND A DEAL TO HAVE HIS FRIEND MR COSBY SERVE AS THE PROSPECTIVE SPONSOR'S SPOKESMAN TERMS COULDN'T BE DETERMINED ALTHOUGH REPORTS HAVE ESTIMATED ITS SIZE AT ABOUT 7 MILLION THE ADS WILL BE HANDLED BY INGALLS QUINN & JOHNSON BOSTON WHO'S NEWS ROBERT CHERINS 52 OF MCCAFFREY & MCCALL NEW YORK IS LEAVING THE AGENCY FOR JORDAN MCGRATH CASE & TAYLOR NEW YORK AS PRESIDENT OF ITS DIRECT MARKETING OPERATIONS JMCT/DIRECT HAS AN ESTIMATED 5 MILLION IN BILLINGS RAMADA SUIT HILTON HOTELS CORP BEVERLY HILLS AND ITS CHAIRMAN AND CHIEF EXECUTIVE W BARRON HILTON HAVE DROPPED OUT OF A SUIT FILED LAST MONTH AGAINST RAMADA INTERNATIONAL HOTELS & RESORTS THE MIAMI UNIT OF NEW WORLD HOTEL HOLDINGS LTD OF HONG KONG AN ATTORNEY FOR HILTON DECLINED TO SAY WHY THE TRADEMARK INFRINGEMENT SUIT CONTINUES WITH MARRIOTT CORP AND HYATT CORP AS PLAINTIFFS 9304020042 930402 PAINEWEBBER OFFICIALS SAW 30 JUMP IN '92 BONUSES AS FIRM'S PROFIT SOARED BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PAINEWEBBER GROUP INC'S FIVE SENIOR OFFICERS RECEIVED AN AVERAGE 30 INCREASE IN 1992 BONUSES AMID RECORD PROFITS AT THE NATION'S FIFTHLARGEST BROKERAGE FIRM THE COMPANY'S PROXY STATEMENT SHOWS SEPARATELY AN ARBITRATION PANEL ORDERED PAINEWEBBER TO PAY 26 MILLION TO A WEALTHY INVESTOR WHOSE ACCOUNT APPARENTLY ROSE IN VALUE BY 2 MILLION OVER SIX YEARS DONALD B MARRON PAINEWEBBER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RECEIVED 66 MILLION IN 1992 SALARY BONUS AND RESTRICTED PAINEWEBBER STOCK ACCORDING TO THE PROXY MR MARRON ALSO RECEIVED 11 MILLION IN OTHER COMPENSATION BRINGING HIS TOTAL PAY PACKAGE TO 77 MILLION THE 1992 COMPENSATION PACKAGE INCLUDED A BONUS OF 4 MILLION 33 HIGHER THAN THE 3 MILLION BONUS HE EARNED IN 1991 THE RESTRICTED STOCK VESTS OVER THREE YEARS AS PART OF A 1989 PARTNERSHIP PLAN MR MARRON ALSO RECEIVED 551071 IN 1992 FROM THE EXERCISE OF 46406 OPTIONS ON PAINEWEBBER STOCK THE PROXY SAID THE PARTNERSHIP EXERCISED THE OPTIONS LAST YEAR TO AVOID POTENTIAL ADVERSE CONSEQUENCES TO THE FIRM AND SENIOR EXECUTIVES FROM ANY TAXLAW CHANGES THE PROXY SAID MR MARRON CURRENTLY HOLDS AN ADDITIONAL 589068 OPTIONS ON PAINEWEBBER STOCK WITH A CURRENT VALUE OF 76 MILLION ACCORDING TO THE PROXY PAINEWEBBER DECLINED TO COMMENT ON ITS EXECUTIVE PAY BUT THE PROXY SAID MR MARRON'S PAY LEVEL REFLECTS THE OUTSTANDING PERFORMANCE THAT HAS OCCURRED UNDER HIS LEADERSHIP PAINEWEBBER'S 1992 NET INCOME SURGED 41 TO A RECORD 2132 MILLION ON AN 18 INCREASE IN REVENUE MOREOVER PAINEWEBBER SAYS ITS STOCK HAS SUBSTANTIALLY OUTPERFORMED VARIOUS STOCK INDEXES FOR THE PAST FIVE YEARS PAINEWEBBER'S SHARES HAVE AVERAGED AN ANNUAL TOTAL RETURN OF 239 OUTPACING THE RETURN OF THE STANDARD & POOR'S 500STOCK INDEX AND THE S&P FINANCIAL MISCELLANEOUS INDEX WHICH INCLUDES RIVALS MERRILL LYNCH & CO AND SALOMON INC AMONG OTHERS THE PROXY SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PAINEWEBBER STOCK FELL 50 CENTS TO 25375 SEVERAL OTHER SENIOR PAINEWEBBER EXECUTIVES RECEIVED PAY RAISES PAUL B GUENTHER PAINEWEBBER PRESIDENT EARNED 4 MILLION IN 1992 SALARY BONUS AND RESTRICTED STOCK MR GUENTHER ALSO RECEIVED OTHER COMPENSATION OF 526000 BRINGING HIS TOTAL 1992 PAY PACKAGE TO 45 MILLION IN 1991 MR GUENTHER HAD A TOTAL PAY PACKAGE OF 31 MILLION THE RESTRICTED STOCKS VESTS OVER THREE YEARS AS PART OF THE 1989 PARTNERSHIP PLAN MR GUENTHER ALSO RECEIVED 352685 LAST YEAR FROM THE EXERCISE OF 29700 OPTIONS ON PAINEWEBBER STOCK THE PROXY SAID MR GUENTHER CURRENTLY HOLDS 292200 OPTIONS ON PAINEWEBBER STOCK WITH A CURRENT VALUE OF 38 MILLION JOHN A BULT CHAIRMAN OF PAINEWEBBER INTERNATIONAL JAMES TREADWAY PAINEWEBBER'S GENERAL COUNSEL AND RONALD M SCHWARTZ AN EXECUTIVE VICE PRESIDENT OF PAINEWEBBER RECEIVED 1992 PAY PACKAGES OF 876481 16 MILLION AND 16 MILLION RESPECTIVELY THE PROXY SAID IN THE ARBITRATION CASE RICHARD GRAHAM AN INVESTOR WITH A NET WORTH OF MORE THAN 10 MILLION ACCUSED PAINEWEBBER AND A BROKER OF UNAUTHORIZED AND EXCESSIVE TRADING OF THE 8 MILLION BROKERAGE ACCOUNT HE SHARED WITH HIS WIFE IN PAPERS FILED WITH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN FORT LAUDERDALE FLA THE GRAHAMS ALSO SAID IT WAS UNSUITABLE FOR PAINEWEBBER TO PUT 21 MILLION OF THEIR ACCOUNT IN RISKY LIMITED PARTNERSHIPS BECAUSE THEY HAD ASKED FOR A CONSERVATIVE INVESTMENT STRATEGY BETWEEN 1985 AND EARLY 1991 THE GRAHAMS' BROKERAGE ACCOUNT ACTUALLY ROSE IN VALUE BY ABOUT 2 MILLION PEOPLE FAMILIAR WITH THE CASE SAY BUT THE GRAHAMS SAID IN PAPERS FILED WITH THE ARBITRATORS THAT THE ACCOUNT WOULD HAVE MADE MORE HAD IT NOT BEEN TRADED EXCESSIVELY AMONG OTHER THINGS THE COUPLE ASKED THE ARBITRATORS FOR ABOUT 7 MILLION IN DAMAGES AND LOST PROFIT PAINEWEBBER DENIED ANY WRONGDOING IN THE CASE THE FIRM ALLEGED THAT THE GRAHAMS ARE WEALTHY AND LITIGIOUS INDIVIDUALS WHO ARE UNHAPPY THAT WITH HINDSIGHT THE TRADING IN THEIR ACCOUNTS WAS NOT MORE PROFITABLE BUT THE ARBITRATION PANEL FOUND PAINEWEBBER LIABLE AND ORDERED THE FIRM TO RESCIND MANY OF THE GRAHAMS' LIMITED PARTNERSHIP INVESTMENTS AND SIMULTANEOUSLY PAY THE INVESTORS 21 MILLION REPRESENTING THEIR INITIAL LIMITEDPARTNERSHIP INVESTMENT THE THREEMEMBER PANEL ALSO ORDERED PAINEWEBBER TO PAY THE GRAHAMS DAMAGES OF MORE THAN 563000 WHAT THIS DECISION SAYS IS THAT JUST BECAUSE YOU MADE MONEY DOESN'T MEAN YOUR ACCOUNT WAS HANDLED PROPERLY BY A BROKERAGE FIRM SAYS DOUGLAS J SCHULZ PRESIDENT OF INVEST SECURITIES CONSULTING INC DALLAS WHO WAS AN EXPERT WITNESS IN THE CASE FOR THE GRAHAMS PAINEWEBBER SAID IT DISAGREED WITH THE AWARD AND ARGUED THAT THE GRAHAMS UNDERSTOOD AND APPROVED ALL THEIR BROKERAGE PURCHASES IN A STATEMENT THE FIRM SAID THAT THE PARTNERSHIPS TAKEN BACK STILL HAVE A SUBSTANTIAL VALUE OF WELL IN EXCESS OF 1 MILLION AND MANY OF THEM ARE STILL PAYING ATTRACTIVE YIELDS PAINEWEBBER ALSO NOTED THAT THE GRAHAMS SOUGHT 7 MILLION FROM THE ARBITRATION PANEL AND THAT THE ARBITRATORS SPECIFICALLY FOUND THAT THE CLAIMANTS WERE COMPARITIVELY NEGLIGENT AND FAILED TO MITIGATE THEIR DAMAGES PAINEWEBBER WON'T APPEAL THE RULING 9304020041 930402 BUSINESS BRIEF NATIONSBANK CORP PURCHASE OF MNC FINANCIAL TO BE 501 PAID IN STOCK NATIONSBANK CORP SAID IT WILL PAY 501 OF THE 136 BILLION PURCHASE PRICE FOR MNC FINANCIAL INC IN NATIONSBANK COMMON STOCK AND THE OTHER 499 IN CASH NATIONSBANK THE FOURTH LARGEST BANK HOLDING COMPANY IN THE US WHICH IS BASED IN CHARLOTTE NC SAID THE TRANSACTION WILL INVOLVE 682 MILLION IN STOCK AND 678 MILLION IN CASH NATIONSBANK HAS ALREADY RAISED THE CASH PORTION IN MARCH IT COMPLETED THE SALE OF 400 MILLION OF SUBORDINATED NOTES BOOSTING THE TOTAL DEBT IT HAS SOLD DURING 1993 TO 12 BILLION NATIONSBANK SAID ITS ACQUISITION OF MNC WHICH IS BASED IN BALTIMORE MD AND IS THE LARGEST BANK IN MARYLAND WILL BE STRUCTURED AS A CASHELECTION MERGER WHICH MEANS MNC SHAREHOLDER CAN CHOOSE TO RECEIVE STOCK OR CASH IN EXCHANGE FOR THEIR SHARES SUBJECT TO AMONG OTHER THINGS THAT THE OVERALL 501 STOCK TO 499 CASH RATIO IS MAINTAINED NATIONSBANK EXERCISED ITS OPTION TO ACQUIRE MNC IN FEBRUARY AGREEING TO PAY 1517 A SHARE FOR EACH MNC OUTSTANDING AT THE END OF 1992 MNC HAD 89682000 SHARES OUTSTANDING 9304020040 930402 HEALTH CINCINNATI FIRMS CUTTING COSTS WITH HOSPITALRANKING SYSTEM BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL FOUR MAJOR CINCINNATI EMPLOYERS ARE REDUCING HEALTHCARE COSTS WITH A NEW SYSTEM FOR COMPARING HOSPITALS ON THE BASIS OF THE COST AND QUALITY OF THEIR CARE THE COMPUTERIZED SYSTEM FOR THE FIRST TIME GIVES THE CITY'S HOSPITALS A COMMON WAY TO CLASSIFY PATIENTS BY THE SEVERITY OF THEIR ILLNESSES IT ENABLES THE HOSPITALS TO COMPARE THE COSTS AND EFFECTIVENESS OF TREATING PATIENTS AT VARIOUS LEVELS OF ILLNESS FOR CONDITIONS RANGING FROM HEART ATTACKS TO PNEUMONIA AND TO WORK WITH DOCTORS TO ROOT OUT INEFFICIENT PRACTICES WITH THE NEW SYSTEM HOSPITALS THAT TREAT A HIGH PORTION OF SEVERELY SICK HEART PATIENTS AND THUS HAVE HIGHER OVERALL COSTS CAN BE COMPARED WITH HOSPITALS THAT TEND TO TREAT LESSSICK PATIENTS AND CONSEQUENTLY HAVE LOWER OVERALL COSTS THIS SYSTEM TELLS US WHO PROVIDES THE MOST COSTEFFECTIVE AND HIGHEST QUALITY CARE SAYS THOMAS MURPHY A VICE PRESIDENT AT KROGER CO ONE OF THE EMPLOYERS PARTICIPATING IN THE CINCINNATI PROJECT FOR THE FIRST TIME WE ARE IN A POSITION TO KNOW WHO THAT IS AND WHERE TO DIRECT OUR BUSINESS SUCH SOCALLED SEVERITYRATING SYSTEMS ARE BEING USED IN A GROWING NUMBER OF US HOSPITALS FOR INTERNAL QUALITY IMPROVEMENT AND COSTSAVINGS PROJECTS AND THEY ARE EXPECTED TO PLAY A CRUCIAL ROLE IN DEVELOPMENT OF RANKINGS THAT PURCHASERS AND CONSUMERS WILL USE TO SELECT HOSPITALS OR HEALTH PLANS CINCINNATI IS ONE OF A HANDFUL OF CITIES WHERE EMPLOYERS ARE SPONSORING COMMUNITYWIDE PROJECTS INVOLVING SEVERITYRATING SYSTEMS IN ORLANDO FLA FOR INSTANCE THE CENTRAL FLORIDA HEALTH CARE COALITION AND HOSPITALS THAT ACCOUNT FOR 90 OF THE BEDS IN THE AREA ARE REDUCING HEALTH COSTS WITH THE HELP OF A SEVERITYRATING SYSTEM CALLED MEDISGROUPS MARKETED BY MEDIQUAL SYSTEMS INC OF WESTBORO MASS AND THE CLEVELAND HEALTH QUALITY CHOICE PROJECT PLANS TO RELEASE A REPORT AT THE END OF THE MONTH THAT IS BASED IN PART ON A HOMEGROWN SYSTEM DEVELOPED AS PART OF AN INITIATIVE INVOLVING 31 HOSPITALS THE CINCINNATI PROJECT IS USING A SEVERITYRATING SYSTEM MARKETED BY IAMETER INC OF SAN MATEO CALIF BESIDES KROGER THE OTHER EMPLOYERS PARTICIPATING IN THE PROJECT ARE PROCTER & GAMBLE CO CINCINNATI BELL INC AND GENERAL ELECTRIC CO'S GE AIRCRAFT ENGINES UNIT TOGETHER THESE EMPLOYERS ACCOUNT FOR 10 TO 15 OHE LOCAL HEALTHCARE MARKET WITH SUCH PURCHASING POWER THE COMPANIES PERSUADED ALL 14 GREATER CINCINNATI HOSPITALS TO USE THE SAME SYSTEM IN WHAT OFFICIALS DESCRIBE AS A COLLABORATIVE EFFORT TO IDENTIFY AND REDUCE WIDE VARIATIONS IN TREATMENT COSTS AND HOSPITAL STAYS FOR PATIENTS TREATED FOR THE SAME CONDITIONS BUT THE PROJECT IS ALREADY TURNING COMPETITIVE AS HOSPITALS SCRAMBLE TO IMPROVE PERFORMANCE WITH THE EXPECTATION THAT THE EMPLOYERS WILL BEGIN USING THE DATA TO MAKE PURCHASING DECISIONS LATER THIS YEAR THIS HAS MOTIVATED HOSPITALS AND DOCTORS TO LOOK FOR WAYS IN EVERY DIRECTION TO BRING DOWN COSTS AND MAINTAIN QUALITY SAYS WARREN C FALBERG PRESIDENT AND CHIEF EXECUTIVE OF JEWISH HOSPITALS OF CINCINNATI THE EMPLOYERS ARE LOOKING FOR PEOPLE WHO CAN PROVIDE EXCELLENT CARE AT THE LEAST POSSIBLE COST WHILE MANY OF THE HOSPITALS HAVE PREVIOUSLY TAKEN OTHER STEPS TO IMPROVE EFFICIENCY THE PROJECT LAUNCHED A YEAR AGO IS ALREADY YIELDING DIVIDENDS IAMETER OFFICIALS PRESENTED DATA TO HOSPITALS AND EMPLOYERS ON WEDNESDAY SHOWING THAT THE LENGTH OF THE AVERAGE HOSPITAL STAY IN 1992 DECLINED 10 FROM 1991 WHILE THE AVERAGE COST PER CASE FELL 5 OR A SAVING OF 350 PER ADMISSION THERE HAS BEEN IMPROVEMENT IN EFFICIENCIES ACROSS THE BOARD SAYS LAWRENCE J FRYE IAMETER'S PRESIDENT INDEED WHILE EMPLOYERS HAVEN'T YET USED THE DATA TO PURCHASE CARE THEY BELIEVE THE PROJECT HAS ALREADY PROMPTED HOSPITALS AND DOCTORS TO CHANGE PRACTICE PATTERNS AND ADOPT MORE COSTEFFECTIVE APPROACHES TO TREATING PATIENTS EVERY COMPANY IN THIS PARTNERSHIP HAD LOWER HEALTH COSTS LAST YEAR THAN THEY ANTICIPATED OR BUDGETED FOR SAID DONALD E HOFFMAN SENIOR VICE PRESIDENT FOR ADMINISTRATION AT CINCINNATI BELL IT WASN'T FOR ANY REASON OTHER THAN THE HOSPITALS MODIFIED THEIR BEHAVIOR PEREMPLOYEE HEALTH COSTS AT THE PHONE COMPANY FELL 5 MR HOFFMAN SAID THE SYSTEM GATHERS DATA FROM HOSPITAL RECORDS AND SEPARATES PATIENTS ACCORDING TO THEIR DIAGNOSIS AND ONE OF FIVE LEVELS OF SEVERITY AFTER ADJUSTING THE INFORMATION TO ACCOUNT FOR TREATMENT OF SICKER PATIENTS IT PLOTS THE PERFORMANCE OF BOTH HOSPITALS AND DOCTORS BY TWO MEASURES THE COST PER CASE AND THE LENGTH OF HOSPITAL STAY THE INDIVIDUAL HOSPITALS AND DOCTORS ARE IDENTIFIED ONLY BY LETTER SYMBOLS IN THE COMPARATIVE DATA GIVEN TO HOSPITALS BUT ADMINISTRATORS AND DOCTORS AT EACH HOSPITAL KNOW WHICH SYMBOL MARKS THEIR PERFORMANCE AND THEY CAN SEE HOW THEY RANK IN RELATION TO THE OTHERS THE ADMINISTRATORS MEDICAL DEPARTMENT HEADS AND DOCTORS USE THE INFORMATION TO ANALYZE COSTEFFECTIVE TREATMENT METHODS AND SEEK TO ADOPT THOSE APPROACHES AS STANDARD PRACTICE WHILE COSTCONTAINMENT STRATEGIES OFTEN RAISE CONCERNS THAT QUALITY WILL SUFFER PARTICIPANTS MAINTAIN THAT THE PROCESS OF STANDARDIZING MANY PROCEDURES ACTUALLY IMPROVES QUALITY BOTH HOSPITALS AND DOCTORS ARE BEGINNING TO MAKE CHANGES OFFICIALS SAID FOR INSTANCE ORTHOPEDIC DOCTORS AT SOME INSTITUTIONS ARE AGREEING TO USE JUST ONE OR TWO BRANDS OF ARTIFICIAL HIPS IN HIPREPLACEMENT OPERATIONS INSTEAD OF LETTING EACH DOCTOR PICK FROM AMONG MORE THAN A HALF DOZEN VERSIONS ON THE MARKET THIS GIVES A HOSPITAL THE CHANCE TO SAVE MONEY WITH VOLUME PURCHASES FROM ONE VENDOR AND IT HELPS SURGICAL TEAMS DEVELOP STANDARD TREATMENT PROTOCOLS FOR HIP PROCEDURES HOSPITALS ARE SETTING UP 24HOUR SOCIAL SERVICE TEAMS TO IMPROVE DISCHARGE PLANNING AND MAKE IT EASIER FOR WELL PATIENTS TO BE DISCHARGED ON SAY SATURDAY AFTERNOON INSTEAD OF WAITING UNTIL MONDAY MORNING AND BOTH HOSPITALS AND DOCTORS ARE AGREEING TO PERFORM ELECTIVE HEART PROCEDURES ON SATURDAYS A MOVE THAT CAN BY ITSELF REDUCE A HOSPITAL STAY BY A COUPLE OF DAYS WE'RE GOING TO HAVE TO GET OUT OF THIS ATTITUDE OF A FIVEDAY WEEK AT THE HOSPITAL SAID RICHARD STRUB DIRECTOR OF OBSTETRICS AND GYNECOLOGY AT CHRIST HOSPITAL AND HEAD OF THE INSTITUTION'S COMMITTEE ON THE IAMETER PROJECT HOSPITALS AND DOCTORS HAVE SOME RESERVATIONS ABOUT THE PROCESS FOR ONE IAMETER IS KEEPING ITS METHODOLOGY SECRET ANNOYING SOME DOCTORS WHO WANT TO UNDERSTAND MORE ABOUT THE PROCESS FOR ANOTHER VARIATIONS IN THE WAY HOSPITALS CODE THEIR BILLS AND RECORDS COULD AFFECT THE RESULTS AND HOSPITALS ARE WORRIED ABOUT THE EVENTUAL OUTCOME ONCE THE EMPLOYERS START USING THE DATA TO NEGOTIATE CONTRACTS WITH SPECIFIC INSTITUTIONS THE PROCESS IS EXPECTED TO PRODUCE MERGERS AND FORCE SOME HOSPITALS TO CURTAIL SERVICES THAT DON'T PERFORM WELL ENOUGH TO ATTRACT PATIENTS I DON'T THINK EVERYONE IS GOING TO SURVIVE IN THIS MARKETPLACE SAID JEWISH HOSPITALS' MR FALBERG BUT FEW DOUBT THAT THE STRATEGY EMPLOYERS HAVE ADOPTED IS THE FUTURE FOR HOSPITAL CARE SAYS JACK COOK PRESIDENT AND CHIEF EXECUTIVE OF CHRIST HOSPITAL THIS IS A BEGINNING STEP DOWN A ROAD THAT WE HAVE TO GO 9304020039 930402 BUSINESS BRIEF SPRINT CORP FIRM SEES 1STPERIOD CHARGE OF AS MUCH AS 575 MILLION SPRINT CORP SAID IT EXPECTS TO TAKE A CHARGE OF 550 MILLION TO 575 MILLION IN THE FIRST QUARTER PRIMARILY FOR CHANGES IN ACCOUNTING FOR RETIREE MEDICAL BENEFITS AND FOR COSTS OF A MERGER WITH CENTEL CORP THE NONRECURRING CHARGE FOR THE CHANGE IN ACCOUNTING FOR RETIREE MEDICAL COSTS IS EXPECTED TO BE ABOUT 340 MILLION THE KANSAS CITY MO COMPANY SAID THE MERGER WITH CENTEL WHICH WAS RECENTLY COMPLETED WILL RESULT IN A CHARGE OF 160 MILLION TO 175 MILLION SPRINT NOTED HOWEVER THAT THE MERGER IS EXPECTED TO PRODUCE MINIMUM SAVINGS OF ABOUT 145 MILLION ANNUALLY ON A PRETAX BASIS WITHIN TWO YEARS THE SAVINGS WILL RESULT FROM WORK FORCE REDUCTIONS ELIMINATION OF DUPLICATE FACILITIES AND DATA SYSTEMS AND OTHER ECONOMIES SPRINT SAID SPRINT SAID 1500 POSITIONS NOW ARE EXPECTED TO BE ELIMINATED IN THE MERGER AND IN CONTINUED BUSINESS PROCESS IMPROVEMENTS UP FROM AN ESTIMATED 1000 WHEN THE MERGER WAS ANNOUNCED SPRINT ALSO SAID ADOPTION OF THE NEW ACCOUNTING STANDARD FOR POSTRETIREMENT MEDICAL BENEFITS WILL INCREASE 1993 OPERATING EXPENSES PRINCIPALLY FOR ITS LOCAL TELEPHONE OPERATIONS BY ABOUT 50 MILLION IN ADDITION SOME OTHER CHARGES FOR VARIOUS ITEMS WILL TOTAL ABOUT 53 MILLION SPRINT SAID IN THE 1992 FIRST QUARTER SPRINT HAD NET INCOME OF 1363 MILLION OR 62 CENTS A SHARE INCLUDING A GAIN OF 36 MILLION FOR AN ACCOUNTING ADJUSTMENT REVENUE WAS 22 BILLION 9304020038 930402 BUSINESS BRIEF LADBROKE GROUP PLC OFFER OF SHARE ALTERNATIVE TO CASH PAYOUT ENHANCED LADBROKE GROUP PLC SAID IT HAS IMPROVED THE TERMS OF ITS SCRIP DIVIDEND TO SHAREHOLDERS THE UK BETTING AND LEISURE CONCERN IS OFFERING AN ENHANCED SHAREALTERNATIVE EQUIVALENT TO 9345 PENCE 14 CENTS A SHARE AN INCREASE OF 50 OVER ITS PROPOSED 1992 FINAL CASH DIVIDEND OF 623 PENCE A SHARE A SCRIP DIVIDEND OFFERS SHAREHOLDERS ADDITIONAL SHARES IN LIEU OF CASH LADBROKE CHAIRMAN CYRIL STEIN SAID THE ENHANCED SHARE OFFER WOULD CONSERVE THE GROUP'S CASH AND SAVE IT MONEY IT WOULD OTHERWISE HAVE TO PAY AS UK TAX ON DIVIDENDS KNOWN AS ADVANCED CORPORATION TAX THE ENHANCED SHARE OFFER IS CONDITIONAL ON THE APPROVAL OF LADBROKE SHAREHOLDERS AT THE ANNUAL MEETING ON JUNE 14 THE DECISION TO OFFER AN ENHANCED SHARE ALTERNATIVE FOLLOWS AN IDENTICAL MOVE ANNOUNCED LAST MONTH BY TOBACCO AND INSURANCE CONCERN BA T INDUSTRIES PLC 9304020037 930402 HEARD ON THE STREET WALMART STOCK TUMBLES AS INVESTORS WONDER IF DIP IN SALES IS PART OF LONGERTERM TREND BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TWO CENTS A SHARE MAY NOT BE MUCH FOR MOST COMPANIES BUT FOR INVESTORS IN WALMART STORES THIS WEEK IT WAS A BIG DEAL TUESDAY THE STOCK SANK 2 1/8 TO 31 1/8 ON THRICENORMAL VOLUME OF 10 MILLION SHARES AFTER A PRUDENTIAL SECURITIES ANALYST SHAVED TWO CENTS FROM HIS FULLYEAR PROFIT ESTIMATE CUTTING IT TO 104 A SHARE WEDNESDAY'S REBOUND IN THE SHARES WAS ALMOST ERASED BY YESTERDAY'S LOSS OF 1/2 TO 31 1/4 THIS WEEK'S STUMBLE IN THE STOCK IS RAISING QUESTIONS IN SOME INVESTORS' MINDS ABOUT WHETHER AN EXPECTED DIP IN SALES AT WALMART STORES IN MARCH IS A SIGN OF A LONGERTERM SLOWDOWN IN THE HUGE RETAILER'S STELLAR GROWTH EXCLUDING NEW STORES ANALYSTS ARE EXPECTING WALMART TO REPORT A SALES INCREASE OF ABOUT 6 FOR ITS FISCAL FIRST QUARTER ENDING THIS MONTH ONLY A HANDFUL OF TIMES IN THE COMPANY'S HISTORY HAS IT REPORTED COMPARABLESTORE SALES INCREASES BELOW 10 A WALMART SPOKESMAN SAID NOTHING HAS REALLY CHANGED WE EXPECT TO BE ON OUR PLAN AT YEAR'S END HE DECLINED TO ELABORATE ON THAT PLAN MOST ANALYSTS AGREE THAT BAD WEATHER IS MAINLY TO BLAME FOR WALMART'S EXPECTED SALES WEAKNESS SEVERAL LOWERED EARNINGS ESTIMATES LAST MONTH INVESTORS INITIALLY SHRUGGED AT THE THOUGHT OF A BRIEF SALES DOWNTURN CAUSED BY THE NORTHEAST BLIZZARD AND TORRENTIAL RAINS THAT KEPT CUSTOMERS OUT OF STORES BUT THE STOCK GOT HAMMERED WHEN PRUDENTIAL ANALYST WAYNE HOOD SAID HE EXPECTS A LONGERTERM SLOWDOWN IN SALES GROWTH AT WALMART BECAUSE OF FLAGGING SALES AT ITS MEMBERSONLY WAREHOUSE STORES CALLED SAM'S WAREHOUSE CLUBS AFTER MEETING WITH THE COMPANY'S MANAGEMENT TUESDAY MR HOOD TOLD THE FIRM'S BROKERS THAT HE BELIEVES THE SLOWDOWN IN COMPSTORE SALES AT SAM'S GOES BEYOND JUST ADVERSE WEATHER HE TOLD CLIENTS THE NEXT DAY THAT A MAJOR PROBLEM IS COMPETITION FROM OTHER SIMILAR PRICE CLUBS WALMART HASN'T DISTINGUISHED ITSELF LATELY WITH UNIQUE MERCHANDISE OR MARKETING TO SMALL BUSINESSES HE CONTENDS AS A RESULT HE BELIEVES A LEVEL OF UNCERTAINTY WILL SURROUND WALMART'S STOCK OVER THE INTERMEDIATE TERM HE CONTINUES TO HAVE A HOLD RATING ON THE STOCK WHICH TRADES AT 30 TIMES HIS NEW PERSHARE ESTIMATE FOR THE CURRENT YEAR AT SAM'S COMPARABLESTORE SALES FELL AROUND 2 TO 4 IN MARCH MR HOOD SAID IN A REPORT TO CLIENTS BUT MANY BIG INVESTORS SAY THE MARKET OVERREACTED POINTING OUT THAT THE SAM'S STORES ACCOUNT FOR ONLY ABOUT 22 OF REVENUE AND 10 OF PROFIT MONTGOMERY SECURITIES ANALYST EDWARD WELLER SAID THE STOCK IS A GOOD BARGAIN OTHER INVESTORS SAY WALMART'S STOCK PRICE MAY HAVE SUFFERED THIS WEEK FROM A DOUBLEWHAMMY RESULTING IN PART FROM CONCERNS ABOUT HOW PROPOSALS FOR HEALTHCARE REFORM WILL AFFECT LARGE COMPANIES SUCH AS WALMART ON TUESDAY SHEARSON LEHMAN BROTHERS ANALYST THOMAS GALLAGHER RELEASED A REPORT SAYING THAT FIRMS WITH LARGE POOLS OF PARTTIME SEASONAL OR CONTINGENT WORKERS COULD SEE THEIR COSTS RISE IF THE ADMINISTRATION'S PROPOSAL REQUIRES THEM TO PROVIDE BENEFITS FOR THEIR WORKERS THE REPORT NAMED WALMART AS POSSIBLY BEING HARD HIT ALONG WITH OTHERS AND ADDED WALMART MANAGEMENT FEELS THAT THIS COULD BE A SERIOUS DISINCENTIVE TO EMPLOYMENT YESTERDAY ANOTHER COMPANY JAN BELL MARKETING SAID CONCERN IN THE MARKET ABOUT SLOWING SALES AT SAM'S CLUB OUTLETS MAY HAVE CONTRIBUTED TO WEDNESDAY'S 1 1/2 POINT DROP IN JAN BELL STOCK TO 15 3/8 A SIGNIFICANT AMOUNT OF OUR REVENUES DERIVE FROM SAM'S THE JEWELRY MARKETER SAID JAN BELL STOCK WAS UNCHANGED YESTERDAY IT PROBABLY ISN'T HELPING WALMART EITHER THAT DAYTON HUDSON'S TARGET STORES IS LOCKED IN A FIERCE MARKETING BATTLE WITH WALMART TARGET PLACED NEWSPAPER ADS THAT RAN MONDAY ACCUSING ITS COMPETITOR OF MISLEADING CONSUMERS ABOUT TARGET'S PRICES YEAR ENDED JAN 31 1993 FOURTH QUARTER JAN 31 1993 AVERAGE DAILY TRADING VOLUME COMMON SHARES OUTSTANDING SOME IBM INVESTORS ARE READING A LOT INTO LOUIS GERSTNER'S APPOINTMENT AS THE NEW CHIEF EXECUTIVE OF INTERNATIONAL BUSINESS MACHINES 9304020036 930402 WHAT'S NEWS BUSINESS AND FINANCE THE FCC ADOPTED A REGULATORY FORMULA FOR CABLE TV RATES THAT COULD LOWER PRICES BY 1 BILLION OR MORE THAN 10 FOR SOME CONSUMERS SEPARATELY THE COMMISSION GAVE THE THREE MAIN TV NETWORKS THE RIGHT TO TAKE A SHARE OF THE PROCEEDS FROM SYNDICATING THE PROGRAMS THEY SHOW SENATE REPUBLICANS UNDERTOOK A FILIBUSTER STRATEGY TO FORCE CUTS IN CLINTON'S 163 BILLION STIMULUS BILL IN THE MOST SERIOUS CHALLENGE YET TO THE WHITE HOUSE'S ECONOMIC PROPOSALS BUT THE SENATE GAVE FINAL APPROVAL TO THE PRESIDENT'S DEFICITCUTTING PLAN THE CLINTON ADMINISTRATION EASED THE LEVY ON HOME HEATING OIL IN ITS PROPOSAL FOR A BROADBASED ENERGY TAX THE FACTORY SECTOR'S GROWTH SLOWED FOR THE SECOND CONSECUTIVE MONTH IN MARCH AFTER REACHING A FOURYEAR HIGH IN JANUARY ACCORDING TO A SURVEY OF CORPORATE PURCHASING MANAGERS THE DOLLAR SLID TO ANOTHER RECORD LOW AGAINST THE YEN IN THE WAKE OF THE WEAK ECONOMIC DATA WHILE BOND PRICES SLUMPED AND STOCKS ENDED MIXED PRIMERICA SOLD 300 MILLION IN STOCK TO A SECURITIES FIRM THAT PLANS TO RESELL THE SHARES OVERSEAS THE MONEY WILL HELP FINANCE PRIMERICA'S 1 BILLION PURCHASE OF SHEARSON PRIMERICA'S STOCK PRICE DECLINED 1375 TO 4475 GENERAL MOTORS ASKED ITS FORMER PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA TO DECLARE THAT HE DIDN'T TAKE CONFIDENTIAL GM DOCUMENTS WITH HIM TO HIS NEW JOB AT VOLKSWAGEN THE US CAR MAKER ALSO ASKED VOLKSWAGEN TO STOP RECRUITING GM MANAGERS LUMBER FUTURES SANK EXTENDING A RECENT SLIDE THAT SIGNALS THE END OF A FOURMONTH RALLY THAT LIFTED PRICES 150 AND SHARPLY INCREASED TRADING VOLUME THE MARKET SHIFT PARTLY REFLECTS FEARS OF CHANGES IN US TIMBER POLICY THE US PERSUADED SOUTH KOREA TO OPEN PART OF ITS COMMUNICATIONS MARKET AIDING AT&T BUT THE US FAILED TO GET EUROPE TO CUT JET SUBSIDIES KMART'S DEBT WAS DOWNGRADED BY MOODY'S WHICH SAID THE RETAILER WOULD HAVE DIFFICULTY ACHIEVING GROWTH IN A HOTLY COMPETITIVE DISCOUNT MARKET CHAMBERS DEVELOPMENT IS THE SUBJECT OF A CRIMINAL PROBE INTO ALLEGATIONS THAT THE WASTE HANDLING COMPANY REPORTED FRAUDULENT FINANCIAL RESULTS ICN PHARMACEUTICALS CHAIRMAN MILAN PANIC FACES A FIGHT TO KEEP HIS JOB ONLY WEEKS AFTER THE FORMER YUGOSLAV OFFICIAL RETURNED TO THE COMPANY AMR'S AMERICAN AIRLINES PLANS TO FURLOUGH 500 PILOTS AND 400 MECHANICS IN ITS FIRST LAYOFFS IN A DECADE TOKYO STOCKS SOARED 27 THURSDAY AFTER JAPAN'S PRIME MINISTER SUGGESTED A PLANNED ECONOMICSTIMULUS BILL WILL TOTAL AT LEAST 93 BILLION PRICES SURGED FURTHER FRIDAY MORNING PHARMACEUTICAL COMPANIES ASSAILED THE CLINTON ADMINISTRATION'S PROPOSAL TO MAKE THE GOVERNMENT THE SOLE BUYER OF CHILDHOOD VACCINES EASTERN GERMAN ENGINEERING ELECTRONICS AND STEEL WORKERS WALKED OFF THE JOB FOR SEVERAL HOURS AT MORE THAN 200 COMPANIES TO PROTEST THE CANCELLATION OF PROMISED PAY RAISES THE STRIKES ARE SCHEDULED TO CONTINUE STRIDE RITE'S PROFIT FELL 11 IN THE LATEST QUARTER AND THE SHOE MANUFACTURER SAID EARNINGS FOR THE FULL YEAR WOULD BE ABOUT EVEN WITH LAST YEAR ITS STOCK SLID 75 CENTS TO 1850 BONDS LEHMAN BROTHERS TREASURY INDEX 498690 OFF 1869 COMMODITIES OIL 2052 A BARREL UP EIGHT CENTS DOW JONES FUTURES INDEX 12664 OFF 075 SPOT INDEX 12578 UP 020 DOLLAR 11430 YEN OFF 045 15915 MARKS OFF 00145 9304020035 930402 BUSINESS BRIEF ENDEVCO INC FILING IN BANKRUPTCY COURT TO CUT SHAREHOLDERS' STAKE ENDEVCO INC SAID IT WILL REORGANIZE ITSELF THROUGH A PREPACKAGED BANKRUPTCYCOURT FILING THAT WILL LEAVE CURRENT COMMON SHAREHOLDERS WITH 41 OF A SMALLER COMPANY THE DALLAS NATURALGAS CONCERN SAID THAT AS PART OF THE FILING IT WOULD CEDE CERTAIN ASSETS INCLUDING ITS 454MILE PIPELINE SYSTEM IN MISSISSIPPI AND ITS 63MILE SYSTEM IN LOUISIANA TO LENDERS TO WIPE OUT 435 MILLION IN DEBT AN INVESTOR GROUP HAS AGREED UNDER CERTAIN CONDITIONS TO ACQUIRE 49 OF ENDEVCO FOR 5 MILLION THE COMPANY SAID IT EXPECTS TO FILE THE PETITION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE SIMULTANEOUSLY WITH A PLAN OF REORGANIZATION AND CERTAIN DISCLOSURE STATEMENTS IN MIDAPRIL IN US BANKRUPTCY COURT IN DALLAS ENDEVCO SAID ITS LENDERS AND A MAJORITY OF PREFERRED SHAREHOLDERS ALREADY HAVE EXPRESSED SUPPORT FOR THE PLAN THE COMPANY SAID THE PREPACKAGED BANKRUPTCYCODE FILING WON'T INCLUDE FILINGS BY ANY OF ITS SUBSIDIARIES 9304020034 930402 BUSINESS BRIEF STANLEY WORKS COMPANY IS FINED 8 MILLION IN US PRICEFIXING CASE STANLEY WORKS SAID A FEDERAL JUDGE FINED THE COMPANY 8 MILLION ON CHARGES THAT IT CONSPIRED TO FIX PRICES ON DOOR HINGES USED IN COMMERCIAL BUILDINGS THE NEW BRITAIN CONN TOOL MAKER HAD PLEADED NO CONTEST TO THE FEDERAL CHARGES IN MAY 1991 YESTERDAY IT CALLED THE FINE EXCESSIVE AND SAID IT WAS SURPRISED AND DISAPPOINTED STANLEY HAD SAID IT DIDN'T EXPECT THE FINE TO MATERIALLY AFFECT ITS RESULTS WHEN IT PLEADED NO CONTEST IN FEDERAL COURT IN ST LOUIS BUT STANLEY ADDED IN ITS STATEMENT THE JUDGE DID SAY HE WOULD SUSPEND PART OF THE FINE REDUCING IT TO 5 MILLION IF STANLEY MADE CHARITABLE GIFTS TOTALING 1 MILLION TO ESTABLISH PROGRAMS ON BUSINESS ETHICS AT FOUR UNSPECIFIED LAW SCHOOLS WE ARE CURRENTLY ASSESSING THIS OPTION AS WELL AS OUR OPTION TO APPEAL THE COMPANY SAID IT HAD ESTABLISHED A RESERVE IN CONNECTION WITH THE CASE BUT BECAUSE OF THE LARGERTHANEXPECTED FINE IT WILL INCUR ADDITIONAL CHARGES IT SAID THAT THESE AND OTHER CHARGES WILL APPROXIMATE ITS RECENTLY REPORTED GAIN OF ABOUT 15 MILLION OR 33 CENTS A SHARE FROM THE SALE OF ITS STAKE IN MAX CO 9304020033 930402 BUSINESS BRIEF BETHLEHEM STEEL CORP DISPUTE WITH UNION SCUTTLES PLANNED SALE OF STEEL RODS ISPAT GROUP THE INDONESIAN STEELMAKER CALLED OFF ITS PLAN TO BUY BETHLEHEM STEEL CORP'S STEEL BAR AND ROD OPERATIONS IN JOHNSTOWN PA BECAUSE OF A DISPUTE WITH THE UNITED STEELWORKERS BETHLEHEM PABASED BETHLEHEM WHICH SIGNED A LETTER OF INTENT TO SELL THE OPERATIONS LAST NOVEMBER SAID IN A STATEMENT THAT IT WILL IMMEDIATELY BEGIN PEDDLING THE ASSETS IN ENTIRETY OR IN PIECES TO OTHER BUYERS BETHLEHEM HAD ALREADY DISCONTINUED THE OPERATIONS BEFORE THE ISPAT AGREEMENT WHICH ANALYSTS VALUED AT LESS THAN 50 MILLION ISPAT WHICH MADE A COSTCUTTING LABOR AGREEMENT A CONDITION OF THE PURCHASE SAID THE UNION REJECTED ITS OFFER AND MADE A COUNTERPROPOSAL THAT WOULD HAVE PUT THE FACILITY IN THE SAME FINANCIAL CONDITION THAT CAUSED IT TO BE CLOSED BY BETHLEHEM STEEL A SPOKESMAN FOR THE UNION CALLED THAT CLAIM PATENTLY FALSE THIS WAS THE SECOND TIME A BETHLEHEM TRANSACTION WITH A FOREIGN STEELMAKER FELL THROUGH BECAUSE OF A FAILURE TO REACH A LABOR PACT IN NOVEMBER 1991 BETHLEHEM AND BRITISH STEEL PLC CALLED OFF A JOINT VENTURE IN STRUCTURAL AND RAIL PRODUCTS BECAUSE THEY COULDN'T AGREE WITH THE STEELWORKERS 9304020032 930402 BUSINESS BRIEF DSC COMMUNICATIONS CORP JUDGE UPHOLDS JURY AWARD OF 25 MILLION AGAINST FIRM DSC COMMUNICATIONS CORP SAID THAT A FEDERAL JUDGE IN MADISON WIS UPHELD A JURY'S AWARD OF 25 MILLION TO SOKOL CRYSTAL PRODUCTS INC WHICH HAD ACCUSED DSC OF MISAPPROPRIATING TRADE SECRETS DALLASBASED DSC HAD BEEN SEEKING A NEW TRIAL CLAIMING THAT EVIDENCE AT THE ORIGINAL TRIAL LAST YEAR DIDN'T SUPPORT THE JURY'S FINDING THAT IT MISAPPROPRIATED TRADE SECRETS BY USING SOKOL'S DESIGN TO MAKE ITS OWN VOLTAGECONTROLLED CRYSTAL OSCILLATORS SOKOL A QUARTZ CRYSTAL PRODUCT MAKER BASED IN MINERAL POINT WIS AND A FORMER DSC SUPPLIER ACCUSED DSC OF VIOLATING A CONTRACT BY USING SOKOL'S SECRET DESIGN TO MAKE THE OSCILLATORS DSC SAID IT CONTINUES TO DENY THE ALLEGATIONS AND INTENDS TO APPEAL THE VERDICT FURTHER DSC SAID IT HAS ESTABLISHED A 15 MILLION RESERVE TO COVER THE AWARD BUT DOESN'T EXPECT IT TO HAVE A MATERIAL ADVERSE IMPACT ON EARNINGS 9304020031 930402 INTERNATIONAL BRIEF GPA GROUP PLC CONCERN EXECUTES CONTRACTS TO LEASE AIRCRAFT TO CHINA GPA GROUP PLC SHANNON IRELAND ANNOUNCED IT EXECUTED CONTRACTS TO LEASE A FURTHER SEVEN NEW AIRCRAFT VALUED AT 215 MILLION TO CHINA BRINGING ITS FLEET THERE TO 37 AIRCRAFT VALUED AT 113 BILLION THE LATEST LEASES COVER FOUR NEW B737500 SERIES AIRCRAFT AND THREE B737300S TO BE LEASED TO CHINA SOUTHERN AIRLINES FOR AN AVERAGE TERM OF 10 YEARS EACH CHINA SOUTHERN AIRLINES IS BASED AT BAIYUM THE BUSIEST AIRPORT IN CHINA NEAR GUANGZHOU CAPITAL OF THE GUANGDONG PROVINCE THE CHINESE CIVIL JET FLEET HAS GROWN FROM 15 COMMERCIAL AIRCRAFT IN 1984 TO 225 AT THE END OF LAST YEAR GPA GROUP WAS FIRST TO INTRODUCE THE OPERATING LEASE IN CHINA IN 1990 AND IS BY FAR THE LARGEST PROVIDER OF LEASED AIRCRAFT IN THE MARKET CHINA SOUTHERN AIRLINE'S FLEET OF 47 JETS ARE ALL BY BOEING CO AND IT IS A LAUNCH CUSTOMER FOR BOEING'S NEW AIRCRAFT THE B777 TYPE 9304020030 930402 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH COMPANY SEEKS TO BYPASS ALASCOM CARRIER IN ALASKA AMERICAN TELEPHONE & TELEGRAPH CO ASKED THE FEDERAL COMMUNICATIONS COMMISSION FOR PERMISSION TO PROVIDE LONGDISTANCE PHONE SERVICE IN ALASKA BYPASSING THE REGULAR CARRIER ALASCOM INC AT&T BASED IN NEW YORK SAID ITS PLAN TO ELIMINATE ITS JOINT SERVICE AGREEMENTS WITH ALASCOM WOULD SIGNIFICANTLY LOWER RATES TO ALASKAN CUSTOMERS SO THAT THEY WOULD PAY NO MORE THAN CUSTOMERS IN THE OTHER 48 STATES WE ARE PAYING 70 MILLION TO 80 MILLION A YEAR TO SUBSIDIZE ALASCOM'S COSTS AND PROFITS AND THAT DOESN'T MAKE SENSE WHEN THERE IS ANOTHER CARRIER PARTLY OWNED BY MCI COMMUNICATIONS CORP THAT IS GOING TO ALSO OFFER LONGDISTANCE SERVICES SAID AN AT&T SPOKESMAN ALASCOM OFFICIALS WERE UNAVAILABLE FOR COMMENT UNDER AT&T'S PLAN A 10MINUTE NIGHT OR WEEKEND CALL FROM ANCHORAGE TO NEW YORK WOULD BE CUT TO 130 FROM 160 OR 19 THE COMPANY SAID A SIMILAR CALL FROM JUNEAU TO WASHINGTON DC WOULD COST 150 RATHER THAN THE CURRENT 210 A 29 REDUCTION AT&T SAID AT&T SAID IT WOULD INVEST 200 MILLION TO BUILD ITS OWN NETWORK IN ALASKA ESTABLISH A MARKET PRESENCE AND COMPETE FOR BUSINESS JUST AS IT DOES IN THE REST OF THE UNITED STATES CURRENTLY AT&T MUST USE ALASCOM'S FACILITIES TO PROVIDE LONGDISTANCE SERVICE IN ALASKA 9304020029 930402 ABU NIDAL GROUP INDICTED IN PLANS FOR US TERRORISM BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT ANNOUNCED THE INDICTMENT OF FOUR ALLEGED MEMBERS OF THE ABU NIDAL ORGANIZATION ON CHARGES OF CONSPIRING TO COMMIT TERRORIST ACTS IN THE US IT'S A VERY SIGNIFICANT ARREST SAID SKIP BRANDON DEPUTY ASSISTANT DIRECTOR FOR COUNTERTERRORISM AT THE FEDERAL BUREAU OF INVESTIGATION THIS IS THE FIRST TIME WE HAVE BEEN ABLE TO BREAK UP A CELL OF THE NIDAL GROUP OR ANY OTHER MIDDLE EASTERN GROUP A STATE DEPARTMENT OFFICIAL SAID THE ABU NIDAL GROUP IS A TERRORIST ORGANIZATION THAT HAS BEEN QUIET IN RECENT YEARS BUT RETAINS THE CAPACITY FOR DEADLY ATTACKS AND HAS A GLOBAL REACH A FEDERAL GRAND JURY INDICTMENT UNSEALED IN ST LOUIS YESTERDAY SAID THE FOUR CONSPIRED TO KILL JEWS DISCUSSED BLOWING UP THE ISRAELI EMBASSY IN WASHINGTON AND PLANNED THE MURDER OF A TEENAGE GIRL LAWYERS FOR THE FOUR COULDN'T BE REACHED FOR COMMENT THE GIRL PALESTINA ISA DIED AFTER BEING STABBED EIGHT TIMES BY HER FATHER ZEIN ISA WHILE HER MOTHER HELD HER DOWN MR AND MRS ISA WERE CONVICTED OF HOMICIDE FOR THE 1989 SLAYING THEY KILLED THEIR DAUGHTER BECAUSE THEY FELT SHE HAD INFORMATION ABOUT THEIR ACTIVITIES THAT COULD BE TURNED OVER TO AUTHORITIES ACCORDING TO THE FBI THE GOVERNMENT SAID THAT NONE OF THE OTHER PLANS FOR VIOLENT ACTION WAS CARRIED OUT IN ADDITION TO MR ISA THOSE LISTED IN THE INDICTMENT ARE TAWFIQ MUSA SAIF NIJMEH AND LUIE NIJMEH ALL HAVE BEEN ARRESTED THE FOUR WERE CHARGED UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS STATUTE THESE ARRESTS REPRESENT ONE OF THE FEW TIMES POSSIBLY THE FIRST TIME THE STATUTE HAS BEEN USED AGAINST SUSPECTED TERRORISTS MR BRANDON SAID IF CONVICTED THE SUSPECTS COULD BE SENTENCED TO LIFE IN PRISON WITHOUT PAROLE AND A 250000 FINE ACCORDING TO THE JUSTICE DEPARTMENT AMONG THE OBJECTIVES OF THE RACKETEERING ENTERPRISE WERE KILLING THOSE WHO POSE A THREAT TO THE SECRET EXISTENCE AND CONTINUITY OF THE ENTERPRISE THE INDICTMENT PROVIDES FEW SPECIFICS TO BACK UP THE ALLEGATIONS THERE IS NO INDICATION THOSE ARRESTED WERE IN ANY WAY CONNECTED TO THE WORLD TRADE CENTER BOMBING OR THE KILLING OF CENTRAL INTELLIGENCE AGENCY EMPLOYEES OUTSIDE THE AGENCY'S HEADQUARTERS IN JANUARY 9304020028 930402 ABREAST OF THE MARKET STOCKS FINISH MIXED AS INVESTORS SHOW NERVOUSNESS ON ECONOMY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED MIXED AS MOST BROADER MARKET INDEXES FELL UNDER THE WEIGHT OF RISING INTEREST RATES AND UNINSPIRING ECONOMIC NEWS THE DOW JONES INDUSTRIAL AVERAGE EKED OUT A SLIM GAIN RISING 433 POINTS TO 343944 BUT THE STANDARD & POOR'S 500STOCK INDEX EASED 137 TO 45030 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 068 TO 24874 THE DOW JONES EQUITY MARKET INDEX FELL 144 TO 42764 VOLUME ON THE BIG BOARD WAS MODERATELY HEAVY WITH 231960000 SHARES CHANGING HANDS DOWN FROM 275710000 SHARES WEDNESDAY DECLINERS OUTNUMBERED ADVANCERS 1043 TO 852 EVEN THOUGH THE ECONOMICALLY SENSITIVE STOCKS THAT DOMINATE THE DOW JONES INDUSTRIALS FARED A LITTLE BETTER THAN CONSUMER STOCKS YESTERDAY ANALYSTS SAID INVESTORS ARE BECOMING MORE AND MORE NERVOUS ABOUT THE ECONOMY ONE OF THE REASONS IS THAT MANY OF THE RECENT ECONOMIC REPORTS SUGGEST THAT BUSINESS ACTIVITY WAS FLAGGING LAST MONTH FOR INSTANCE THE LABOR DEPARTMENT REPORTED YESTERDAY THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE 33000 IN THE WEEK ENDED MARCH 27 TO 380000 THE HIGHEST LEVEL SINCE NOV 7 AND THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID THAT ITS INDEX OF BUSINESS ACTIVITY STOOD AT 534 LAST MONTH COMPARED WITH 558 IN FEBRUARY THE ECONOMIC NEWS REALLY BEGINS TO CALL INTO QUESTION THE STRENGTH OF FIRST AND SECONDQUARTER EARNINGS FOR ECONOMICALLY SENSITIVE COMPANIES SAID THOMAS MCMANUS A MARKET ANALYST AT MORGAN STANLEY MR MCMANUS CALLED YESTERDAY'S GAINS IN CYCLICAL STOCKS A BOUNCEBACK FROM WEDNESDAY'S SHARP SELLOFF HE NOTED THAT IN THE PAST WEEK CYCLICAL STOCKS HAVE FALLEN 152 REFLECTING INVESTOR CONCERNS ABOUT THE ECONOMY WHILE CONSUMER STOCKS HAVE ACTUALLY EDGED UP 111 ONE PROP THAT MAY BE HOLDING UP STOCK PRICES SO FAR THIS YEAR IS THE RISING PACE OF DIVIDEND PAYOUTS ACCORDING TO ARNOLD KAUFMAN EDITOR OF STANDARD & POOR'S OUTLOOK NEWSLETTER 124 COMPANIES RAISED THEIR DIVIDENDS LAST MONTH COMPARED WITH 98 A YEAR EARLIER AT THE SAME TIME FEWER COMPANIES ARE CUTTING THEIR PAYOUTS MR KAUFMAN SAID NINE COMPANIES LOWERED THEIR DIVIDENDS IN MARCH HALF AS MANY AS A YEAR EARLIER STILL HE SAID THE OVERALL GROWTH IN DIVIDENDS IS STILL WELL BELOW THE HISTORICAL AVERAGE DRUG STOCKS WERE BATTERED ON RUMORS THAT THE WHITE HOUSE HASN'T COMPLETELY RULED OUT PRICE CONTROLS AS A WAY OF REINING IN HEALTHCARE COSTS PFIZER TUMBLED 1 1/8 TO 61 1/8 SCHERINGPLOUGH SLID 1 TO 59 MERCK DROPPED 1 TO 34 3/8 AND BRISTOLMYERS SQUIBB FELL 3/8 TO 58 3/4 OTHER HEALTHCARE AND MEDICALDEVICE STOCKS WERE ALSO HIT UNITED HEALTHCARE FELL 2 1/8 TO 49 3/8 US SURGICAL LOST 1 5/8 TO 55 7/8 AND MEDTRONIC PLUNGED 4 TO 71 1/2 CABLE STOCKS TUMBLED AFTER THE FEDERAL COMMUNICATIONS COMMISSION VOTED TO SET A BENCHMARK FOR PRICES CHARGED BY THE CABLE TELEVISION INDUSTRY THE BENCHMARK IS ABOUT 10 BELOW THE AVERAGE PRICE CHARGED BY CABLE COMPANIES BEFORE CONGRESS PASSED THE CABLE TELEVISION REGULATION BILL LAST FALL TIME WARNER THE MOST ACTIVELY TRADED STOCK ON THE BIG BOARD DROPPED 1 5/8 TO 33 1/8 AND CABLEVISION SYSTEMS CLASS A SHARES SKIDDED 2 3/8 TO 36 1/4 ON THE AMERICAN STOCK EXCHANGE WALMART FELL 5/8 TO 31 1/8 THE RETAILER'S STOCK HAS BEEN UNDER PRESSURE RECENTLY BECAUSE OF CONCERNS ABOUT FLAGGING SALES AT ITS MEMBERSONLY WAREHOUSE STORES CALLED SAM'S WAREHOUSE CLUBS PRIMERICA SLUMPED 1 3/8 TO 44 3/4 THE FINANCIALSERVICES CONCERN SOLD SEVEN MILLION COMMON SHARES TO A GROUP LED BY MORGAN STANLEY INTERNATIONAL GROUP IN A BID TO RAISE MONEY FOR ITS ACQUISITION OF SHEARSON LEHMAN'S BROKERAGE BUSINESS PRIMERICA SAID THE SECURITIES ARE BEING RESOLD TO OVERSEAS INVESTORS AT PRICES RANGING FROM 4275 TO 4325 A SHARE THAT'S A DISCOUNT ON THE STOCK'S CURRENT PRICE ON THE NEW YORK STOCK EXCHANGE SYSTEMS CENTER JUMPED 2 3/8 TO 11 7/8 STERLING SOFTWARE SIGNED AN AGREEMENT TO BUY THE COMPANY IN A STOCK TRANSACTION VALUED AT ABOUT 185 MILLION ALLWASTE LOST 7/8 TO 5 7/8 THE WASTE REMOVAL COMPANY WHICH REPORTED FLAT PROFITS FOR ITS FISCAL SECOND QUARTER SAID THE WEAK ECONOMY HAS MADE IT CAUTIOUS IN ITS OPTIMISM THAT IT WILL REACH ITS GROWTH TARGET FOR 1993 BOSTON SCIENTIFIC SANK 2 1/2 TO 13 1/2 THE MAKER OF MEDICAL DEVICES SAID ITS FIRSTQUARTER REVENUE GREW 22 BELOW ITS EXPECTATIONS TO 885 MILLION COOPER INDUSTRIES SKIDDED 2 5/8 TO 48 THE MANUFACTURING CONCERN SAID WEDNESDAY THAT EARNINGS FOR THE FIRST HALF OF THIS YEAR WILL BE BELOW THE YEAREARLIER LEVEL HOWEVER THE COMPANY ADDED THAT IT EXPECTS EARNINGS TO GROW IN THE SECOND HALF HEXCEL ADDED 1 3/8 TO 11 GINTEL FUND WHICH OWNS A 639 STAKE IN HEXCEL SAID IT NOMINATED LEWIS RUBIN THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF XTRA TO RUN FOR A SEAT ON HEXCEL'S BOARD ON WEDNESDAY GINTEL SAID IT WILL ORGANIZE A SLATE OF THREE DIRECTORS TO RUN FOR ELECTION AGAINST MANAGEMENT'S NOMINEES AT HEXCEL'S ANNUAL MEETING IN MAY 9304020027 930402 GOP FILIBUSTER SET TO FORCE CUTS IN STIMULUS BILL SENATE REPUBLICANS OFFER BIGGEST CHALLENGE YET BUDGET PASSES 5545 BY DAVID ROGERS AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S ECONOMICSTIMULUS PLAN IS FACING ITS MOST SERIOUS POLITICAL CHALLENGE YET AS SENATE REPUBLICANS ADOPTED A FILIBUSTER STRATEGY TO FORCE MAJOR CUTS FROM THE WHITE HOUSE'S 163 BILLION BILL THE CONFRONTATION WHICH HAS BEEN BUILDING ALL WEEK SPILLED INTO THE OPEN EVEN AS THE ADMINISTRATION CELEBRATED THE PASSAGE YESTERDAY OF ITS LARGER FIVEYEAR DEFICITREDUCTION PLAN THE BUDGET BLUEPRINT CLEARED THE SENATE ON A 5545 ROLL CALL BUT THE STIMULUS BILL REMAINS MIRED IN THE CHAMBER FOR LACK OF THE 60 VOTES NEEDED TO BREAK THE FILIBUSTER THE GOP STRATEGY WAS SPELLED OUT IN A LETTER TO SENATE MINORITY LEADER ROBERT DOLE IN WHICH THE 42 OTHER SENATORS IN THE REPUBLICAN CAUCUS PLEDGED TO OPPOSE ANY MOVE TO CUT OFF DEBATE ON THE BILL AS PRESENTLY CONSTITUTED THE WHITE HOUSE THOUGH HINTING AT POSSIBLE CONCESSIONS REMAINED FIRM AND THE HIGHSTAKES STRATEGY POSES RISKS FOR BOTH SIDES WE HAVE EVERY RIGHT UNDER THE RULES TO KEEP THIS BILL FROM PASSING SAID MR DOLE BUT MAJORITY LEADER GEORGE MITCHELL VOWED TO KEEP THE SENATE IN SESSION DESPITE TODAY'S SCHEDULED START OF THE SPRING RECESS CLOTURE VOTES ARE EXPECTED TOMORROW ANDMONDAY AND THOUGH DEMOCRATS HAVE SUFFERED DIVISIONS ON THE STIMULUS BILL THE REPUBLICAN TACTICS ARE A UNIFYING FORCE AND ARE SEEN AS A BROADER CHALLENGE TO THE PARTY AND ITS PRESIDENT WE'RE GOING TO STAY HERE UNTIL WE GET THIS DONE SAID MR MITCHELL AND IN A NIGHT OF OFTEN BITTER EXCHANGES THE MAINE DEMOCRAT SUGGESTED THE GOP WAS TRYING TO EMBARRASS MR CLINTON EVEN AS HE PREPARES TO MEET WITH RUSSIAN PRESIDENT BORIS YELTSIN THIS WEEKEND AMID ITS DISAPPOINTMENT THE ADMINISTRATION KNOWS IT IS PAYING A PRICE FOR HAVING LOST CONTROL OF THE DEBATE IN AN UPSET LOSS ON A VOTE MONDAY NIGHT THOUGH DEMOCRATS HAVE SINCE REASSERTED THEMSELVES REPUBLICANS WERE EMBOLDENED BY THEIR WIN HOWEVER FLEETING OVER THEIR OLD NEMESIS SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD THEY WANT TO MAKE ME THE SCAPEGOAT FINE THE WEST VIRGINIAN SAID LAST NIGHT THERE COMES A TIME WHEN THE MAJORITY HAS TO CONTROL YOUNG CONSERVATIVES HAVE LED THE CHARGE IN THE FLOOR DEBATE THIS WEEK BUT MOST STRIKING IS HOW OLDER MORE MODERATE REPUBLICANS HAVE PRESSED FOR A STRONG STAND AGAINST THE ADMINISTRATION RHODE ISLAND SEN JOHN CHAFEE DELIVERED A THUMPING SPEECH AGAINST THE BILL AT A CLOSED GOP CAUCUS EARLIER THIS WEEK AND AMONG THE SIGNATURES ON THE REPUBLICAN LETTER YESTERDAY NONE HAD MORE FLOURISH OR PROMINENCE THAN THAT OF VIRGINIA SEN JOHN WARNER MR BYRD'S STRONGMAN ROLE IN THE DEBATE HAS SERVED TO UNIFY THE MINORITY AND WHATEVER THE MERITS REPUBLICANS HARBOR LONGSTANDING RESENTMENTS TOWARD THE FORMER DEMOCRATIC LEADER MATCHED AGAINST THESE GRIEVANCES HOWEVER IS THE RISK THAT THE MINORITY'S USE OF THE FILIBUSTER WILL ENDANGER ANY HOPE OF COMITY WITH THE FLEDGLING ADMINISTRATION FIRST ON THE MOTOR VOTER BILL LAST MONTH AND NOW ON THE SPENDING BILL REPUBLICANS ARE TESTING THE POWER OF THE FILIBUSTER TO GAIN LEVERAGE BUT THE TACTIC SUMMONS UP IMAGES OF AN OSSIFIED INSTITUTION FRUSTRATING THE SENSE OF CHANGE THAT WAS SUCH A THEME IN THE LAST ELECTION I DON'T GET THE SENSE OF IT SAID SEN JOSEPH LIEBERMAN D CONN IT TAKES US BACK TO THE DAYS OF GRIDLOCK THE CHALLENGE TO THE STIMULUS BILL COMES AT A TIME OF INCREASED RESISTANCE AS WELL TO RELATED TAX INCENTIVES INTENDED TO SPUR PRIVATE INVESTMENT AMONG THESE IS AN INVESTMENT TAX CREDIT COSTING AN ESTIMATED 29 BILLION OVER FIVE YEARS BUT HOUSE WAYS AND MEANS COMMITTEE DEMOCRATS HAVE ALL BUT DECLARED THE PROPOSAL DEAD IN THEIR SEARCH FOR ADDED REVENUES AND SAVINGS I'M ON THE PRESIDENT'S TEAM BUT I DON'T LIKE THE INVESTMENT TAX CREDIT SAID COMMITTEE CHAIRMAN DAN ROSTENKOWSKI YESTERDAY AND THE CHICAGO DEMOCRAT SIGNALED THAT HE PREFERS TO SHIFT THE MONEY ELSEWHERE WHEN HIS PANEL BEGINS DRAFTING THIS YEAR'S TAX BILL IN MAY UNDER THE BUDGET INSTRUCTIONS THE CHAIRMAN COMPLAINED HE ALREADY FACES A POTENTIAL 61 BILLION SHORTFALL IN SAVINGS AND REVENUES MANDATED BY THE DEFICITREDUCTION PLAN AND IN HIS CLEAREST STATEMENT YET MR ROSTENKOWSKI SAID HE WOULD RATHER USE FUNDS FROM THE INVESTMENT TAX CREDIT TO TRIM A PROPOSED INCREASE IN CORPORATE INCOME TAXES THE FOCUS ON THE STIMULUS INITIATIVES COMES EVEN AS CONGRESS MUST INCREASE THE GOVERNMENT'S BORROWING AUTHORITY TO FINANCE THE FEDERAL DEFICIT FOR THE FISCAL YEAR ENDING SEPT 30 THE HOUSE LAST NIGHT TOOK UP THE DEBTCEILING BILL AFTER A LONG DAY OF NEGOTIATIONS TO WIN THE VOTES OF CONSERVATIVE DEMOCRATS WHO ARE PRESSING FOR SEPARATE LEGISLATION TO INCREASE THE PRESIDENT'S POWER TO RESCIND OR STRIKE ITEMS FROM SPENDING BILLS BOTH THE WHITE HOUSE AND APPROPRIATIONS COMMITTEE LEADERSHIP WON SOME ACCOMMODATIONS AND REP CHARLES STENHOLM D TEXAS SAID HE EXPECTS THE ENHANCED RESCISSION BILL TO BE BROUGHT TO THE FLOOR AND PASSED TODAY UNDER THE PROPOSED PROCEDURE CONGRESS COULD NO LONGER IGNORE ANY CUTS SOUGHT BY THE PRESIDENT BUT THE APPROPRIATIONS COMMITTEES WOULD BE PERMITTED TO CRAFT AN ALTERNATIVE PACKAGE OF CUTS TO BE OFFERED IF THE ADMINISTRATION'S ISN'T ADOPTED WITH THE DEBTCEILING BILL STILL PENDING THE TREASURY POSTPONED A 1425 BILLION AUCTION OF 52WEEK BILLS THAT WAS SCHEDULED FOR YESTERDAY THE TREASURY HAS NO AUCTIONS PLANNED FOR TODAY 9304020026 930402 TECHNOLOGY & MEDICINE VERSION OF RU486 IS CLAIMED BY GROUP FOR ABORTION RIGHTS NEW YORK STEPPING UP PRESSURE ON THE EUROPEAN MAKER OF THE CONTROVERSIAL ABORTION PILL AN ABORTIONRIGHTS GROUP SAID IT HAD PRODUCED AN AMERICAN VERSION OF THE DRUG RU486 AND WILL SEEK GOVERNMENT APPROVAL TO BEGIN TESTING IT ON WOMEN LAWRENCE LADER PRESIDENT OF ABORTION RIGHTS MOBILIZATION SAID A GROUP OF CHEMISTS AT A NEW YORK LABORATORY HAD PRODUCED THE PILL CHEMICAL TESTS OF THE GROUP'S VERSION OF THE PILL HAVE CONFIRMED THAT IT HAS THE SAME ACTIVE INGREDIENT AS RU486 MR LADER SAID THE SAME GROUP BROUGHT IN AND TESTED A CHINESE VERSION OF RU486 IN FEBRUARY TESTS OF BOTH DRUGS WILL BE SUBMITTED TO THE FOOD AND DRUG ADMINISTRATION FOR APPROVAL TO BEGIN HUMAN TESTING MR LADER SAID BUT THE GROUP IS WAITING A MONTH TO SEE IF ROUSSELUCLAF AND ITS GERMAN PARENT HOECHST AG MOVE FORWARD ON THEIR PLANS TO BEGIN TESTING RU486 IN THE US MR LADER SAID MR LADER SAID PATENT LAWS ALLOW HIS GROUP TO TEST RU486 BUT NOT ACTUALLY MARKET THE PRODUCT BY TESTING THE DRUG HOWEVER HIS GROUP COULD SPEED UP EVENTUAL MARKETING IN THE US A SPOKESMAN FOR THE FDA SAID WE'VE BEEN SAYING ALL ALONG WE THINK THERE SHOULD BE A NEW DRUG APPLICATION FOR RU486 ALSO SEEKING TO INCREASE PRESSURE ON ROUSSELUCLAF AND THE GOVERNMENT A 500MEMBER ORGANIZATION CALLED PHYSICIANS FOR RU486 HAS SCHEDULED A NEWS CONFERENCE FOR TODAY IN WASHINGTON TO DEMAND AN END TO THE DELAYS IN US ACCESS TO THE PILL AT THE MEETING THE AMERICAN MEDICAL ASSOCIATION THE AMERICAN COLLEGE OF OBSTETRICIANS AND GYNECOLOGISTS AND THE AMERICAN COLLEGE OF PHYSICIANS WILL RELEASE STATEMENTS SUPPORTING ACCESS TO RU486 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 9304020025 930402 WHO'S NEWS MANATRON INC MANATRON INC KALAMAZOO MICH GENE BLEDSOE MANAGING PARTNER OF CASAL GROUP WAS NAMED TO THE BOARD OF THIS PROVIDER OF COMPUTER PRODUCTS FILLING A VACANCY 9304020024 930402 MTC ELECTRONICS CHINA VENTURE RICHMOND BRITISH COLUMBIA MTC ELECTRONICS TECHNOLOGIES CO SAID IT SIGNED A JOINTVENTURE AGREEMENT WITH CHINA SATELLITE LAUNCHING TRACKING AND CONTROL CENTRAL AND HONG KONG INVESTMENT FIRM NEW YEAR INVESTMENTS LTD TO PROVIDE SATELLITE COMMUNICATIONS SERVICES AND PRODUCTS IN CHINA MTC DECLINED TO SAY HOW MUCH IT PLANS TO INEST IN THE JOINT VENTURE CHINA SATELLITE IS A DEPARTMENT OF THE GOVERNMENT OF CHINA MTC SAID THE VENTURE REQUIRES REGULATORY APPROVAL IT SAID MTC IS A CONSUMER ELECTRONICS MAKER 9304020023 930402 BUSINESS BRIEF NORCEN ENERGY RESOURCES LTD OIL PRODUCER WON'T SEEK MORE NORTH CANADIAN SHARES NORCEN ENERGY RESOURCES LTD AFTER ACQUIRING A CONTROLLING STAKE IN NORTH CANADIAN OILS LTD SAID IT WON'T MAKE FURTHER OFFERS FOR THE MINORITY SHARES UNDER CURRENT MARKET CONDITIONS NORCEN SHAREHOLDERS YESTERDAY APPROVED NORCEN'S PURCHASE OF A 504 EQUITY STAKE IN NORTH CANADIAN OILS NORCEN A CALGARYBASED OIL AND GAS PRODUCER ISSUED 12367978 SUBORDINATE VOTING SHARES TO TORONTO RESOURCES CONCERN NORANDA INC AND ITS AFFILIATE DAAL ENERGY HOLDINGS INC FOR THEIR COMBINED HOLDING OF 18459669 SHARES OF NORTH CANADIAN THE SHARESWAP RATIO IS 067 NORCEN SHARE FOR EACH NORTH CANADIAN SHARE NORCEN HAD ABOUT 327 MILLION SUBORDINATE VOTING SHARES AND ABOUT 37 MILLION MULTIPLE VOTING SHARES OUTSTANDING BEFORE THE TRANSACTION 9304020022 930402 TECHNOLOGY & MEDICINE MCI GETS CONTRACT TO PROVIDE CIRCUITS FOR FOREIGN CARRIERS WASHINGTON MCI COMMUNICATIONS CORP SAID IT RECEIVED A MULTIMILLIONDOLLAR CONTRACT FROM A GROUP OF 32 FOREIGN TELECOMMUNICATIONS CARRIERS TO PROVIDE VOICE AND DATA TRANSMISSION CIRCUITS MCI SAID IT WILL PROVIDE THE GROUP THE MULTILATERAL INITIATIVE WITH DIGITAL TRANSMISSION LINES TO CARRY CALLS AND DATA TRAFFIC FROM THE CARRIERS' FOREIGN NETWORKS ACROSS THE US CANADA AND MEXICO MUCH OF THIS TRANSMISSION IS NOW HANDLED BY THE AMERICAN TELEPHONE & TELEGRAPH CO NETWORK EUROPEAN ASIAN AND SOUTH AMERICAN CARRIERS ARE SAID TO BELONG TO THE GROUP INCLUDING BRITISH TELECOMMUNICATIONS PLC AND FRANCE TELECOM TELEGLOBE CANADA CANADA'S INTERNATIONAL CARRIER SAID IT WOULD SOON SIGN A SIMILAR AGREEMENT WITH THE GROUP WHILE THE CONTRACT COVERS THREE YEARS MCI SAID IT ALSO CAN WRITE INDIVIDUAL PACTS WITH GROUP MEMBERS FOR TERMS OF AS LONG AS 25 YEARS A SPOKESWOMAN SAID THE VALUE OF THE CONTRACT WILL PROBABLY RUN INTO THE TENS OF MILLIONS OF DOLLARS MCI PLANS TO PROVIDE THE GROUP WITH DIGITAL TRANSMISSION CIRCUITS SPANNING NORTH AMERICA FIBEROPTIC GEAR ON BOTH COASTS TO HOOK UP TO THE GROUP'S TRANSOCEANIC FIBEROPTIC LINES AND STATIONS TO HANDLE SATELLITE TRANSMISSIONS SEPARATELY MCI SAID THE FEDERAL COMMUNICATIONS COMMISSION HAD APPROVED ITS VIDEOPHONE FOR SALE IN THE US THE PHONE WHICH IS MADE BY BRITAIN'S GECMARCONI IS PRICED AT 750 JAMES FOLK VICE PRESIDENT OF THE VIDEOPHONE PROJECT SAID THE PHONE IS AVAILABLE TO ANYBODY WHO CALLS BUT THERE ARE NO PLANS TO SELL IT THROUGH RETAIL OUTLETS 9304020021 930402 WHO'S NEWS QUAKER CHEMICAL CORP QUAKER CHEMICAL CORP CONSHOHOCKEN PA SIGISMUNDUS WW LUBSEN 49 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING PETER A BENOLIEL WHO WILL REMAIN CHAIRMAN THE CHANGE IS EFFECTIVE MAY 5 MR LUBSEN IS CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER MR BENOLIEL 61 SAID HE WILL DEVOTE HIS TIME TO STRATEGIC PLANNING CORPORATE GOVERNANCE AND SHAREHOLDER RELATIONS QUAKER PRODUCES SPECIALTY CHEMICALS 9304020020 930402 ENTERPRISE MYSTIC CHIPS SNEAK INTO CROWDED SUPERMARKET SHELVES REGIONAL FIRM'S TIEIN WITH MUSEUM AND UPSCALE MARKETING PAY OFF BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL MYSTIC CONN BEN GREENFIELD'S CHIPS HAVE COME IN THANKS TO A NOVEL MARKETING ARRANGEMENT WITH A MARITIME MUSEUM HERE THE 35YEAROLD ENTREPRENEUR HAS PULLED OFF AN UNUSUAL COUP AFTER OPERATING FOR LESS THAN A YEAR WITH A PRODUCT CALLED MYSTIC CHIPS HE SAYS HIS ONEMAN BUSINESS HAS CAPTURED A SMALL REGIONAL SLICE OF THE HIGHLYCOMPETITIVE POTATO CHIP MARKET MR GREENFIELD'S EXPERIENCE SHOWS HOW CREATIVITY ALONG WITH CAREFUL MARKET POSITIONING CAN GIVE EVEN THE MOST MUNDANE PRODUCT A FRESH FACE IN THIS CASE IT'S THE HUMBLE POTATO CHIP A PRODUCT THAT HAS BEEN PACKAGED FLAVORED AND SHAPED IN COUNTLESS WAYS SINCE ITS REPUTED INVENTION IN 1853 AT THE TABLE OF COMMODORE CORNELIUS VANDERBILT MR GREENFIELD SIMPLY DID IT AGAIN HIS ANGLE HE LAUNCHED HIS SNACK FOOD IN PARTNERSHIP WITH MYSTIC SEAPORT THE LARGEST US MARITIME MUSEUM AND AIMED THE CHIPS AT UPSCALE CONSUMERS WHO FREQUENT GOURMET STORES AND DELICATESSENS MYSTIC SEAPORT LOCATED ON CONNECTICUT'S MYSTIC RIVER IS A RECREATION OF A NINETEENTH CENTURY NEW ENGLAND WHALING PORT LAST YEAR 425000 VISITORS TOURED THE MUSEUM'S SQUARERIGGED SAILING VESSELS AND RESTORED VICTORIANERA BUILDINGS I WANTED THE PRODUCT TO BE BORN THERE SAYS MR GREENFIELD I WOULDN'T HAVE GONE INTO THE POTATOCHIP BUSINESS IF I DIDN'T HAVE A TWIST ON THE PRODUCT A MEANS OF GIVING IT A TRUE PERSONALITY AND BACKGROUND HE ADDS MR GREENFIELD GOT INTO THE POTATOCHIP BUSINESS IN A ROUNDABOUT WAY AFTER GRADUATING FROM ITHACA COLLEGE HE SPENT 10 YEARS HANDLING MARKETING FOR ABBOTT'S SEAFOODS A CANNERY IN NOANK CONN HE JOINED HEUBLEIN INC IN 1989 AS A BRAND MANAGER FOR INGLENOOK WINE HE SAYS HE WAS ASKED TO LEAVE HEUBLEIN AFTER SIX MONTHS MR GREENFIELD SUBSEQUENTLY BEGAN MYSTIC CHIPS WITH ABOUT 60000 OUT OF HIS POCKET TWO YEARS AGO HE APPROACHED MYSTIC SEAPORT OFFICIALS WITH THE IDEA THAT THEY MAKE AND SELL SMALL BATCHES OF THICKSLICED POTATO CHIPS TO VISITORS THE MUSEUM SET UP AN OLDFASHIONED POTATO SLICER AND A DEEP FRYER IN A CORNER OF ITS RESTAURANT VISITORS ATE PLENTY AND THE CHIPS SOON PASSED MUSTER WITH MUSEUM OFFICIALS MR GREENFIELD THEN PROPOSED EXPLOITING THE MYSTIC NAME BY MAKING LARGER QUANTITIES OF CHIPS THROUGH AN OUTSIDE PLANT AND SELLING THEM IN NEW ENGLAND STORES SEAPORT OFFICIALS WHO HAD BEEN MULLING THE IDEA OF MARKETING HISTORIC FOOD ITEMS LIKED THE IDEA WE KNOW THEY FRIED POTATOES AT SEA SAYS J REVELL CARR MYSTIC SEAPORT'S PRESIDENT SEASONING MYSTIC CHIPS WITH SEA SALT PUTS A FURTHER MARITIME SPIN ON THE PRODUCT HE ADDS MR CARR SAYS MR GREENFIELD'S POTATO CHIPS ARE A PERFECTLY LOGICAL COMPLEMENT TO THE MUSEUM'S LARGE LINE OF HISTORYBASED MERCHANDISE THE LINE INCLUDES SUCH ITEMS AS OIL PAINTINGS OF SHIPS AND SCRIMSHAWDECORATION AND CARVING OF SHELLS IVORY AND THE LIKE OFTEN DONE BY SAILORS NONPROFIT MYSTIC SEAPORT REAPED RETAIL SALES OF 85 MILLION LAST YEAR THROUGH A FORPROFIT GIFT SHOP AND A MAILORDER CATALOGUE MR GREENFIELD FOUND A MAINE PROCESSING COMPANY TO MASSPRODUCE MYSTIC CHIPS AND THE CHIPS MADE THEIR DEBUT IN RETAIL OUTLETS LAST AUGUST MR GREENFIELD'S COMPANY BEN GREENFIELD & ASSOCIATES HAS AGREED TO PAY THE SEAPORT A 2 ROYALTY FOR EACH BAG OF CHIPS SOLD BY RETAILERS A SIXOUNCE BAG OF MYSTIC CHIPS TYPICALLY SELLS FOR 169 THE PACKAGE FEATURES A DESIGN OF A THREEMASTED SAILING SHIP THOMAS AAGESON MYSTIC SEAPORT'S MARKETING VICE PRESIDENT SAYS THAT THE MUSEUM HAS RECEIVED A COUPLE OF CHECKS SO FAR HE DECLINES TO PREDICT HOW BIG THE ROYALTIES MIGHT BECOME MR GREENFIELD SAYS HE'S DISTRIBUTING MYSTIC CHIPS IN ABOUT 300 STORES BETWEEN BOSTON AND NEW YORK CITY HIS BIG BREAK CAME LAST FALL WHEN BUYERS FOR TWO MAJOR REGIONAL GROCERY CHAINS STOP & SHOP SUPERMARKET CO IN QUINCY MASS AND FIRST NATIONAL SUPERMARKETS INC IN WINDSOR LOCKS CONN AGREED TO STOCK THE CHIPS HE PREDICTS MYSTIC CHIPS REVENUE WILL EXCEED 1 MILLION THIS YEAR THAT'S SMALL POTATOES IN THE HUGE POTATOCHIP BUSINESS WHERE US SALES HIT 43 BILLION IN 1991 ACCORDING TO THE SNACK FOOD ASSOCIATION IN ALEXANDRIA VA WE'RE SKIMMING THE MARKET LOOKING FOR UPSCALE BUYERS SAYS MR GREENFIELD FROM COMPANY HEADQUARTERS A DESK IN THE CORNER OF A LARGE THIRDFLOOR OFFICE THAT HE SHARES WITH A YACHT SALES COMPANY THE OFFICE IN A BOATYARD JUST OUTSIDE MYSTIC INCLUDES A SPECTACULAR VIEW OF THE ROCKY CONNECTICUT COAST AND AN ARM OF LONG ISLAND SOUND I DON'T WANT TO FIGHT WITH INDUSTRY LEADER FRITOLAY OR WISE OR EAGLE SNACKS HE CONTINUES I DON'T EVEN WANT TO BE SEEN AS A NUISANCE IN FACT MYSTIC CHIPS AREN'T USUALLY FOUND ON A GROCERY STORE'S SNACKFOOD SHELVES ALONG WITH OTHER CHIP BRANDS MR GREENFIELD DELIBERATELY POSITIONED HIS PRODUCT AS A SPECIALTY ITEM FOR GOURMET FOOD STORES AND FOR A GROCERY'S DELICATESSEN SECTION MYSTIC CHIPS ARE THICKER AND THEIR PRICE IS ABOUT 20 HIGHER THAN MOST BRANDS OF CHIPS MR GREENFIELD SAYS KEEPING MYSTIC CHIPS PHYSICALLY APART FROM OTHER CHIPS ALSO ENABLES HIM TO AVOID SOCALLED SLOTTING FEES FOOD PRODUCERS PAY GROCERY CHAINS THESE FEES TO GAIN SHELF SPACE A BOSTON FOOD BROKER HELPED HIM TO PLACE HIS PRODUCT IN STORES THE PACKAGE'S MYSTIC LOGO EVEN STRIKES A CHORD WITH A LOT OF YOUNG CONSUMERS WHO HAVE NEVER HEARD OF THE SEAPORT THE TOWN WAS THE SETTING FOR MYSTIC PIZZA JULIA ROBERTS'S FIRST HIT MOVIE MYSTIC SEAPORT'S MR AAGESON SAYS MR GREENFIELD WILL HAVE THE INSIDE TRACK IF THE MUSEUM DECIDES TO LEND ITS NAME TO OTHER FOOD ITEMS ROOT BEER KETCHUP AND PICKLED FOODS ARE CANDIDATES THE MUSEUM OFFICIAL SAYS HE STRESSES THAT ANY ITEM HAS TO HAVE ROOTS IN THE NINETEENTH CENTURY NO BAZOOKA BUBBLE GUM HE SAYS 9304020019 930402 WHO'S NEWS US BIOSCIENCE US BIOSCIENCE WEST CONSHOHOCKEN PA EDITH P MITCHELL 46 YEARS OLD WAS NAMED TO THE NEW POST OF DIRECTOR OF CLINICAL RESEARCH AT THIS BIOTECHNOLOGY CONCERN SHE WAS ASSOCIATE DIRECTOR OF CANCER CLINICAL DIAGNOSTICS AT MALVERN PA'S CENTOCOR INC ANOTHER BIOTECH FIRM 9304020018 930402 BUSINESS BRIEF TWA SEEKS TO FLY ROUTE FROM CHICAGO TO STANSTED AIRPORT OUTSIDE LONDON MOUNT KISCO NY TRANS WORLD AIRLINES SAID IT HAS ASKED THE US GOVERNMENT FOR PERMISSION TO SERVE A ROUTE BETWEEN CHICAGO'S O'HARE INTERNATIONAL AIRPORT AND LONDON'S STANSTED AIRPORT THE MOVE MARKS THE SECOND ATTEMPT IN LESS THAN A WEEK BY A US CARRIER TO LIBERALIZE THE SKIES ACROSS THE ATLANTIC TWA'S APPLICATION PROVIDES A LOGICAL FIRST STEP TOWARD THE RECENT COMMITMENT BY THE CLINTON ADMINISTRATION AND THE UK GOVERNMENT TO BALANCE AIR TRANSPORTATION BETWEEN THE US AND UK TWA SAID IN A STATEMENT TRANSPORTATION OFFICIALS FROM THE TWO COUNTRIES ARE EXPECTED TO MEET SOON TO DISCUSS REVAMPING THEIR BILATERAL AGREEMENT TWA MADE THE REQUEST IN RESPONSE TO AMERICAN AIRLINES' DECISION TO STOP FLYING THE ROUTE AFTER MAY 31 AMERICAN A UNIT OF AMR CORP WILL CONTINUE TO SERVE LONDON'S HEATHROW AIRPORT TWICE A DAY FROM O'HARE AN AMERICAN SPOKESMAN SAID THE CARRIER WAS VACATING THE STANSTED ROUTE BECAUSE THE SERVICE JUST DIDN'T DEVELOP HEATHROW LOCATED IN LONDON IS THE PRIMARY CHOICE FOR BUSINESS TRAVELERS EARLIER THIS WEEK UAL CORP'S UNITED AIRLINES ASKED GOVERNMENT OFFICIALS TO GRANT IT ROUTE AUTHORITY BETWEEN O'HARE AND HEATHROW THE LARGEST OF LONDON'S THREE MAJOR AIRPORTS STANSTED THE CITY'S LEAST CONGESTED AIRPORT IS LOCATED ABOUT 45 MINUTES OUTSIDE CENTRAL LONDON IF THE GOVERNMENT AGREES TO TRANSFER THE O'HARESTANSTED ROUTE AUTHORITY TO TWA THE CARRIER SAID ITS SERVICE WILL INCLUDE A STOP AT ITS NEW YORK HUB AT KENNEDY AIRPORT IN 1991 TWA APPLIED FOR SERVICE FROM NEW YORK TO LONDON AND THAT APPLICATION HAS BEEN PENDING EVER SINCE BECAUSE IT REQUIRES THAT A NEW ROUTE BE AUTHORIZED BY BOTH THE US AND UK GOVERNMENTS TWA SAID IT HAS AMENDED THAT APPLICATION TO PURSUE THE CHICAGO TO LONDON ROUTE ALTHOUGH TWA IS ONLY SEEKING TO REPLACE A US CARRIER THE REQUEST REQUIRES BRITISH APPROVAL BECAUSE THE NEW YORK STOP ADDS ANOTHER ELEMENT TO THE CURRENT ROUTE TWA HAS BEEN OPERATING UNDER THE PROTECTION OF FEDERAL BANKRUPTCY LAWS FOR MORE THAN A YEAR AND IS EXPECTED TO COMPLETE ITS REORGANIZATION BY EARLY JULY 9304020017 930402 LEISURE & ARTS ON SPORTS RULES TO LIVE WITHOUT BY FREDERICK C KLEIN NEW ORLEANS SPORTS ILLUSTRATED MAGAZINE THAT ESTIMABLE PUBLICATION HAD AN INTERESTING ILLUSTRATION IN ITS ISSUE OF MARCH 29 ITS LEAD STORY ON THE NCAA BASKETBALL TOURNAMENT FEATURED A HEADON PHOTO OF JASON KIDD CALIFORNIA'S ESTIMABLE FRESHMAN GUARD DRIBBLING AROUND BOBBY HURLEY DUKE'S ESTIMABLE SENIOR GUARD DURING CAL'S UPSET OF THE DEFENDING CHAMPIONS IN THE TOURNAMENT'S SECOND ROUND NOT SURPRISINGLY THE ARTICLE WAS HEADLINED CHANGING OF THE GUARD WHAT'S INTERESTING ABOUT THE PHOTO IS THE POSITION OF KIDD'S LEFT HAND ON THE BALL IF THE BALL HAD BEEN A CLOCK FACE KIDD'S PALM WAS SITUATED ABOUT WHERE 730 WOULD BE IN OTHER WORDS HIS HAND WAS UNDER THE BALL NOT OVER IT AS THE SPORT'S RULES REQUIRE IN OTHER WORDS HIS DRIBBLE VIOLATED THE RULES THE REALLY INTERESTING THING IS THAT THESE DAYS JUST ABOUT EVERY BASKETBALL PLAYER PALMS THE BALL ON THE DRIBBLE THE WAY KIDD WAS DOING THE BETTER TO CONTROL IT JUST ABOUT ALL THE TIME I DON'T THINK THE RULE HAS CHANGED OVER THE YEARS BUT THE REFEREES' INTERPRETATION HAS OBSERVES RAY MEYER WHO UNTIL HIS RETIREMENT IN 1984 COACHED BASKETBALL AT DEPAUL FOR 42 YEARS NO QUESTION THERE'S MORE LENIENCY IT SEEMS TO ME AND OTHERS TO WHOM I HAVE SPOKEN THAT THIS OBSERVATION PERTAINS TO MANY BASKETBALL RULES AND THAT THE NET RESULT HAS BEEN TO CHANGE THE WAY THE GAME IS PLAYED YES THE PLAYERS AT EVERY LEVEL ARE BIGGER MORE AGILE AND INFINITELY MORE SKILLFUL THAN THEY USED TO BE AND BASKETBALL'S BEFOREOUREYES EVOLUTION INTO AMERICA'S BESTPLAYED SPORT SHOULD BE REAFFIRMED DURING THE SATURDAYTOMONDAY NCAA FINAL FOUR HERE IN THE NATION'S PARTY CAPITAL BUT THE REFEREES' ACTIONS HAVE GIVEN THE PROCESS A PUSH THIS IS NOT TO BE CONSTRUED AS A KNOCK ON THE WAY INDIVIDUAL REFS CALL INDIVIDUAL GAMES NEXT TO TENNIS BASKETBALL IS PROBABLY THE TOUGHEST GAME TO OFFICIATE AND I THINK IT'S REMARKABLE THAT THE REFS DO AS GOOD A JOB AS THEY DO IT'S APPARENT HOWEVER THAT IN THIS BIGGERSTRONGERFASTER ERA A COUPLE OF UNSPOKEN TENETS CONTROL THE GENERAL APPROACH TO OVERSEEING THE HOOPS SPORT ONE IS THAT WITH THE PLAYERS CAREENING AROUND LIKE THE BALLS IN A TENBALL PINBALL GAME EVERY RULES VIOLATION CAN'T BE CALLED THE OTHER IS THAT EVERY VIOLATION SHOULDN'T BE CALLED IF A FOUL WERE WHISTLED FOR EVERY PHYSICAL CONTACT BASKETBALL WOULDN'T BE A VERY POPULAR SPORT TO WATCH NOTES RICH FALK SUPERVISOR OF OFFICIALS FOR THE BIG TEN CONFERENCE IN A RARE BIT OF CANDOR FOR SOMEBODY IN HIS POSITION PART OF THE PROBLEM IS THAT AS WITH MANY ASPECTS OF COLLEGE SPORTS TODAY THERE ARE TOO MANY RULES THE ONE THAT COMES QUICKEST TO MIND IN THIS CONTEXT LEVIES A LOSSOFPOSSESSION PENALTY AGAINST A TEAM IF ONE OF ITS PLAYERS HOLDS THE BALL IN THE FRONTCOURT FOR FIVE SECONDS WHILE BEING CLOSELY GUARDED WITH THE SHOT CLOCK WHO NEEDS IT THE NCAA SHOULD HOLD ITS RULES COMMITTEE MEETINGS IN THE SOUTH BRONX INSTEAD OF TAHITI AND NOT LET THE MEMBERS EAT UNTIL THEY ADJOURN THAT WAY THEY'D TRIM THE BOOK FAST RECOMMENDS AL MCGUIRE THE FORMER MARQUETTE COACH AND PRESENT TELEVISION COMMENTATOR BUT THE OTHER BIGGER TROUBLE IS THAT SOME RULES ARE SO RARELY ENFORCED AS TO BE NONEXISTENT HELPING CREATE A GAME THAT'S ABOUT TWO PARTS SUMO WRESTLING TO ONE PART FINESSE BESIDES THE ONE AGAINST PALMING THE DRIBBLE THEY INCLUDE THE FOLLOWING THREESECONDS OFFENSIVE PLAYERS AREN'T SUPPOSED TO PARK IN THE PAINTED PORTION OF THE FREETHROW LANE FOR MORE THAN THREE SECONDS BUT DO SO ROUTINELY RAY MEYER'S COMMENT NO ROOTS NO FOUL HANDCHECKING NCAA RULES SAY IT'S ILLEGAL FOR A DEFENSIVE PLAYER TO TAG A BALL HANDLER'S TORSO WITH HIS HAND BUT WHEN'S THE LAST TIME YOU SAW THAT ENFORCED SAME FOR AN OFFENSIVE PLAYER USING HIS HANDS TO DETERMINE THE POSITION OF A DEFENDER BEHIND HIM SAYS EXCOACH AND TV COMMENTATOR DICK VITALE THEY CALL THOSE THINGS THE FIRST GAME OF EVERY SEASON AND NOT AGAIN UNTIL THE FIRST GAME THE NEXT SEASON INTENTIONAL FOULS TO DISCOURAGE A VOLLEY OF GAMEDELAYING LATE FOULS BY TEAMS TRYING TO OVERCOME DEFICITS THESE CALL FOR FREE THROWS AND BALL POSSESSION FOR THE OFFENDED TEAM UNDER CERTAIN CIRCUMSTANCES IN TRUTH THOUGH EVERY GAMEDELAYING LATE FOUL BY A TRAILING TEAM IS INTENTIONAL AND ONLY THE FEROCIOUS ONES GET CALLED MEYER'S COMMENT NO BLOOD NO INTENTIONAL FOUL MOVING SCREENS THE RULES SAY A PLAYER SETTING A SCREEN FOR A TEAMMATE TO DRIBBLE OR SHOOT BEHIND MUST BE STATIONARY BEFORE MAKING CONTACT WITH A DEFENDER BUT THAT HASN'T PREVENTED LOTS AND LOTS OF RUN AND BUMP FROM GOING ON SAYS VITALE SOME TEAMS BASE THEIR ENTIRE OFFENSES AROUND MOVING SCREENS HOW'S AN OFFICIAL GONNA CALL THAT I COULD GO ON AND EXPOUND ON THE INCONSISTENCY WITH WHICH OFFICIALS CALL THE INFAMOUS TRAVELING VIOLATION IF A GOOD PLAYER TAKES THREE STEPS AFTER SUSPENDING HIS DRIBBLE IT'S OK IF A POOR PLAYER DOES IT IT'S TRAVELING SAYS MEYER BUT I THINK THE POINT HAS BEEN MADE I'LL TRY NOT TO LET IT SPOIL MY FINAL FOUR AND SUGGEST YOU DO THE SAME WHILE RAGGEDY CINDERELLA TEAMS HAVE ADDED SPICE TO PAST SEASONS' NCAA SEMIFINAL FIELDS WE WILL HAVE TO MAKE DO THIS TIME WITH FOUR RICH AND SPOILED BEAUTIES IN KANSAS NORTH CAROLINA KENTUCKY AND MICHIGAN THAT THREE OF THEM MUST LOSE BEFORE THE FESTIVITIES ARE CONCLUDED MONDAY NIGHT WILL COME AS A SHOCK AND AFFRONT TO THEIR SUPPORTERS AND ALTHOUGH THE MAIN QUESTION TO BE RESOLVED HERE IS THE OBVIOUS ONE WHO'LL WIN THERE ALSO ARE OTHERS WILL RESIDENTS OF KANSAS' HOME CITY OF LAWRENCE NAMED NO DOUBT FOR LARRY BROWN WHO COACHED THE SCHOOL'S 1988 NCAA CHAMPS CHANGE THE NAME OF THE BURG TO ROY IF ROY WILLIAMS'S JAYHAWKS WIN THIS ONE CAN ERIC MONTROSS NORTH CAROLINA'S 7FOOT 270POUND MUSCLEMAN OF A CENTER BRING DOWN NOT ONLY A BACKBOARD WITH A SLAM DUNK BUT THE ENTIRE NEW ORLEANS SUPERDOME WILL A KENTUCKY VICTORY MEAN THAT WILDCAT COACH RICK PITINO CAN FRANCHISE HIS ITALIAN RESTAURANT IN LEXINGTON WILL MICHIGAN GUARD RAY JACKSON'S SHORTS STAY ON TUNE IN 9304020016 930402 PEPPERAND SALT NEWS NOTE ECONOMISTS REPORT THAT CONSUMER CONFIDENCE IS DOWN THE REASON'S CLEAR AND TERSE THAT HARD TIMES WILL GET WORSE OF MICROFICHE AND CHIPS 9304020015 930402 BUSINESS BRIEF ATLAS CONSOLIDATED MINING NET LOSS IN 1992 NARROWED BUT DEMAND STILL SAGGED ATLAS CONSOLIDATED MINING & DEVELOPMENT CORP THE PHILIPPINES' LARGEST COPPER MINING COMPANY SAID IT HAD A NET LOSS OF 473 MILLION PESOS 19 MILLION IN 1992 NARROWER THAN THE NET LOSS OF 491 MILLION PESOS IN 1991 COMPANY OFFICIALS SAID THE LOSSES REFLECT SAGGING DEMAND BECAUSE OF THE WORLDWIDE RECESSION AS WELL AS HUGE INVENTORIES FROM NEW AND BIGGER MINES WHICH DEPRESSED WORLD METAL PRICES IN ITS 1992 ANNUAL REPORT ATLAS REPORTED THAT WORLDWIDE INVENTORY OF REFINED COPPER INCREASED BY 38 IN 1992 TO 19 MILLION METRIC TONS FROM 14 MILLION METRIC TONS AT THE END OF 1991 A METRIC TON EQUALS 220462 POUNDS FOR 1992 THE AVERAGE PRICE OF COPPER AT THE LONDON METAL EXCHANGE WAS 103 PER POUND LOWER THAN 106 IN 1991 9304020014 930402 FINANCING BUSINESS CANADIAN PACIFIC LTD CANADIAN PACIFIC LTD MONTREAL SAID IT WILL RAISE ABOUT 30 MILLION CANADIAN DOLLARS US238 MILLION BY ISSUING APPRECIATION RIGHTS RELATED TO PART OF ITS STAKE IN UNITED DOMINION INDUSTRIES LTD THE RIGHTS WILL APPLY TO COMMON SHARES OF UNITED DOMINION THAT CANADIAN PACIFIC USED TO BACK A DEBENTURE ISSUE LAST YEAR THE CANADIAN PACIFIC DEBENTURES ARE EXCHANGEABLE FOR 10 MILLION UNITED DOMINION SHARES IN DECEMBER 1995 ASSUMING UNITED DOMINION'S SHARE PRICE ISN'T HIGHER THAN C15 AT THAT TIME IF THE PRICE IS HIGHER AS IT HAS BEEN RECENTLY THE NUMBER OF SHARES AVAILABLE TO THE DEBENTURE HOLDERS WOULD BE REDUCED PROPORTIONATELY THE APPRECIATION RIGHTS TO BE ISSUED THROUGH AN UNDERWRITING ARRANGEMENT WITH GORDON CAPITAL CORP ESSENTIALLY REPRESENT A VEHICLE FOR INVESTORS TO BET THAT UNITED DOMINION'S SHARE PRICE WILL CONTINUE TO EXCEED C15 GIVING THEM A PORTION OF THE 10 MILLION SHARES THAT HAD BEEN SET ASIDE TO BACK THE DEBENTURES CANADIAN PACIFIC A MONTREALBASED CONGLOMERATE OWNS 45 OF UNITED DOMINION AN ONTARIOBASED CONSTRUCTION CONCERN THAT STAKE WOULD DROP TO 175 IF ALL DEBENTURES OR RIGHTS ARE EXCHANGED 9304020013 930402 WHO'S NEWS DATA GENERAL CORP DATA GENERAL CORP WESTBORO MASS ROBERT C HUGHES 53 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT WORLDWIDE SALES AND SERVICE AT THIS COMPUTER COMPANY HE WAS PREVIOUSLY CHIEF OPERATING OFFICER OF BACHMAN INFORMATION SYSTEMS INC HE WILL REPORT TO RONALD L SKATES PRESIDENT AND CHIEF EXECUTIVE OFFICER 9304020012 930402 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED MARCH 26 ACCOUNTED FOR 114 OR AN AVERAGE 278 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 31 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 43 INVOLVED STOCKINDEX ARBITRAGE UP FROM 38 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 474 OF PROGRAM TRADING REFLECTED FIRM'S TRADING FOR THEIR OWN ACCOUNTS WHILE 40 WAS FOR CUSTOMERS AN ADDITIONAL 126 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS UBS SECURITIES AND NOMURA SECURITIES DID ALL OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY PAINEWEBBER AND BEAR STEARNS DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9304020011 930402 PSI'S BOARD URGES HOLDERS TO REJECT IPALCO HOSTILE BID BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL PLAINFIELD IND PSI RESOURCES INC SAID ITS BOARD UNANIMOUSLY URGED SHAREHOLDERS TO REJECT A HOSTILE 15 BILLION TENDER OFFER THAT IPALCO ENTERPRISES INC INTENDS TO LAUNCH THE UTILITY HOLDING COMPANY CHARACTERIZED IPALCO'S BID AS INFERIOR TO AN AGREEMENT PSI REACHED IN DECEMBER UNDER WHICH IT WANTS TO MERGE WITH CINCINNATI GAS & ELECTRIC CO AND FORM A NEW COMPANY KNOWN AS CINERGY CORP IPALCO'S MIDMARCH ANNOUNCEMENT OF ITS RIVAL PLAN PUSHED PSI SHARES UP SHARPLY FROM THE LEVEL THEY HAD REACHED AFTER THE CG&E MERGER WAS DISCLOSED THE PARENT OF INDIANA POWER & LIGHT CO SAID ITS 2650ASHARE STOCK AND CASH OFFER WOULD YIELD GREATER SAVINGS AND MORE EASILY PASS MUSTER WITH REGULATORS BUT PSI YESTERDAY SAID ITS BOARD RELYING IN PART ON THE OPINION OF FINANCIAL ADVISOR LEHMAN BROTHERS DETERMINED THAT THE IPALCO OFFER IS NOT IN THE BEST INTERESTS OF PSI OR ITS SHAREHOLDERS INDEED PSI LABELED IPALCO'S BID FOOL'S GOLD FOR SHAREHOLDERS AND SAID ITS UNWANTED SUITOR'S OFFER RESTS ON AN UNREALISTIC REGULATORY PLAN IT QUESTIONED THE SAVINGS IPALCO PROMISED FROM A PSI/IPALCO COMBINATION SAYING SOME WERE INFLATED AND OTHERS FABRICATED PSI'S HOLDERS HAVE YET TO APPROVE THE PROPOSED COMBINATION WITH CINCINNATI GAS AND A SPECIAL MEETING WILL BE SCHEDULED AT A FUTURE TIME PSI SAID IPALCO HAD ALSO SAID IT PLANS TO NOMINATE A FIVEPERSON SLATE OF DIRECTORS FOR PSI BOARD TO BE VOTED ON AT PSI'S SCHEDULED MAY 12 ANNUAL SHAREHOLDER MEETING PSI SAID YESTERDAY THAT THE ANNUAL MEETING WILL BE RESCHEDULED FOR A DATE TO BE DETERMINED IN THE FUTURE IPALCO CAN'T FORMALLY LAUNCH ITS PLANNED TENDER OFFER UNTIL A REGISTRATION STATEMENT IT HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GETS APPROVAL IN INDIANAPOLIS IPALCO SAID IT IS DISAPPOINTED WITH THE ACTION OF PSI'S DIRECTORS AND ASSERTED THAT ITS OFFER IS CLEARLY ECONOMICALLY SUPERIOR TO THE PROPOSED CINCINNATI GAS/PSI UNION PSI'S STATEMENTS DEMONSTRATE EITHER AN ATTEMPT TO MISLEAD OR A COMPLETE LACK OF UNDERSTANDING OF OUR PROPOSAL IPALCO ASSERTED A CINCINNATI GAS SPOKESMAN SAID THE UTILITY IS PLEASED THAT OUR MERGER AGREEMENT WAS AFFIRMED AND SAID THE COMPANY PLANS TO MOVE AHEAD WITH THE MERGER RELATED ACTIVITIES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PSI CLOSED AT 2375 OFF 125 CENTS IPALCO WAS UNCHANGED AT 3775 AND CINCINNATI GAS ROSE 25 CENTS TO 2650 9304020010 930402 BUSINESS BRIEF TALISMAN ENERGY INC BIG NATURALGAS DISCOVERY MADE IN BRITISH COLUMBIA TALISMAN ENERGY INC CALGARY ALBERTA SAID IT HAS MADE ANOTHER LARGE WILDCAT NATURAL GAS DISCOVERY IN THE MONKMANSUKUNKA REGION OF BRITISH COLUMBIA THAT COULD BOOST THE COMPANY'S NATURALGAS PRODUCTION 25 TALISMAN FORMERLY BP CANADA INC HAS SUCCESSFULLY DRILLED AND COMPLETED 10 NATURALGAS WELLS IN THE DISTRICT SINCE 1989 THE NEW FIND IN WHICH IT HAS A 50 INTEREST TESTED AT AN INITIAL RATE OF 42 MILLION CUBIC FEET OF GAS DAILY TALISMAN'S PARTNER IN THE WELL IS AMOCO CORP'S CANADIAN UNIT IN 1992 TALISMAN'S GAS PRODUCTION AVERAGED 210 MILLION CUBIC FEET DAILY MOST OF THE MONKMANSUKUNKA FINDS ARE EXPECTED TO COME FULLY ON STREAM IN 1994 TALISMAN ALSO ANNOUNCED TWO OTHER DISCOVERIES AT CORE HOLDINGS IN ALBERTA IT REPORTED A SIGNIFICANT NEW POOL GAS DISCOVERY IN THE PEACE RIVER ARCH AREA BUT DECLINED TO GIVE FURTHER DETAILS AND TALISMAN SAID IT AND THE CANADIAN UNIT OF CHEVRON CORP HAVE MADE A GAS POOL DISCOVERY IN THE PEMBINA AREA OF ALBERTA APPRAISAL DRILLING AND TESTING ARE UNDER WAY THE COMPANY SAID 9304020009 930402 LOMAS UNIT PREPAYMENT DALLAS LOMAS FINANCIAL CORP SAID ITS SHORTTERM CONSTRUCTION LENDING UNIT ST LENDING INC WILL PREPAY 20 MILLION OF PRINCIPAL ON ITS SECURED NOTES DUE 1996 ON APRIL 16 TO HOLDERS OF RECORD ON APRIL 6 THE MORTGAGE SERVICING CONCERN SAID THE 20 MILLION PREPAYMENT WILL REDUCE THE OUTSTANDING BALANCE OF THE NOTES TO 132 MILLION FROM 240 MILLION IN JULY 1992 9304020008 930402 IBM EUROPE STARTS CUTTING NEARLY 10000 POSITIONS PARIS AP IBM EUROPE HAS BEGUN CUTTING NEARLY 10000 JOBS AND TOLD FOUR PLANTS IN BRITAIN FRANCE SPAIN AND SWEDEN TO TRIM THEIR LOSSES OVER THE NEXT 12 MONTHS THE EUROPEAN UNIT OF INTERNATIONAL BUSINESS MACHINES CORP SAID THE PLANNED REDUCTIONS WERE FIRST ANNOUNCED IN DECEMBER AS PART OF 25000 WORLDWIDE CUTS PLANNED FOR 1993 NO FIGURES WERE AVAILABLE ON HOW MANY JOBS HAVE BEEN CUT IN EUROPE SINCE THEN AMONG IBM'S 11 PLANTS IN SIX EUROPEAN COUNTRIES 2600 JOBS OR ABOUT 10 OF THE TOTAL FACTORY WORK FORCE ARE TO BE ELIMINATED IN 1993 SAID SPOKESMAN ALAN GILLINGS HE SAID 7000 OTHER POSITIONS IN MARKETING AND SERVICE ARE ALSO TO BE CUT THIS YEAR FROM IBM EUROPE'S WORK FORCE WHICH TOTALED 90000 AT THE END OF 1992 WE HAVE BEGUN CUTTING THE JOBS BUT IT'S MOSTLY SEVERANCE PACKAGES AND ALL VOLUNTARY SO FAR MR GILLINGS SAID IN A TELEPHONE INTERVIEW HE SAID FOUR EUROPEAN FACTORIES MUST IMPROVE OPERATIONS OVER THE NEXT YEAR ESPECIALLY BY SELLING THEIR PRODUCTS NOT ONLY WITHIN IBM BUT ALSO TO OTHER CLIENTS THE FOUR PLANTS WHICH EMPLOY A TOTAL OF 4800 PEOPLE ARE LOCATED IN HAVANT ENGLAND MONTPELLIER FRANCE VALENCIA SPAIN AND JARFALLA SWEDEN 9304020007 930402 EQUITABLE COS PLANS 600 MILLION OFFERING IN PRIVATE PLACEMENT NEW YORK EQUITABLE COS SAID IT PLANS TO ISSUE 600 MILLION IN CONVERTIBLE SECURITIES IN A PRIVATE PLACEMENT TO ITS PRINCIPAL SHAREHOLDER GROUPE AXA SA AND INSTITUTIONAL INVESTORS THE COMPANY SAID IT WOULD USE THE PROCEEDS TO INCREASE CAPITAL OF ITS LIFE INSURANCE SUBSIDIARIES ANALYSTS BELIEVE EQUITABLE MUST SHORE UP CAPITAL IN THOSE BUSINESSES IN ADVANCE OF NEW STATE REGULATIONS THAT TAKE EFFECT AT YEAR END GROUPE AXA A FRENCH INSURANCE CONCERN CONTRIBUTED 750 MILLION TO EQUITABLE WHEN THE COMPANY LAST YEAR SWITCHED TO BECOME PUBLIC SHAREHOLDEROWNED FROM POLICYHOLDEROWNED EQUITABLE SAID GROUPE AXA WOULD PURCHASE 49 OF THE NEW CONVERTIBLE ISSUE EQUITABLE A LIFE INSURANCE AND FINANCIAL SERVICES HOLDING COMPANY IS BELOW THEIR COMPETITORS IN THEIR RISKBASED CAPITAL RATIOS IN THE LIFE INSURANCE BUSINESSES SAID JAMES RAMENDA MANAGING DIRECTOR WITH NORTHINGTON PARTNERS AND IN ORDER TO BECOME MORE COMPETITIVE AND ACQUIRE THE RATINGS THEY DESIRE THEY NEEDED MORE CAPITAL THIS PLACEMENT OUGHT TO DO IT FOR THEM AXA IS PREVENTED UNDER A STANDSTILL AGREEMENT FROM OWNING MORE THAN ITS PRESENT 49 OF EQUITABLE BEFORE SEPTEMBER 1994 IN FEBRUARY AXA SAID IT WAS RAISING ABOUT 650 MILLION IN CAPITAL AND EXPRESSED AN INTEREST IN HELPING EQUITABLE MEET CAPITAL REQUIREMENTS BASED ON CURRENT MARKET CONDITIONS EQUITABLE SAID THE ENTIRE ISSUE WOULD BE CONVERTIBLE TO ABOUT 25 MILLION COMMON SHARES AFTER JULY 22 1994 EQUITABLE HAS ABOUT 142 MILLION SHARES OUTSTANDING PRIOR TO YESTERDAY'S ANNOUNCEMENT EQUITABLE SHARES CLOSED AT 20875 UP 875 CENTS 9304020006 930402 REVIEW & OUTLOOK EDITORIAL YELTSIN SHOULD ASK BEFORE MESSRS CLINTON AND YELTSIN GO COMPLETELY NUMB FROM DISCUSSING THE IMF AND OTHER VARIETIES OF NOVOCAIN AT THE AID SUMMIT THIS WEEKEND THE PRESIDENT OF RUSSIA SHOULD ASK THE AMERICAN PRESIDENT TO PROVIDE DOLLARS FOR SOMETHING HIS BELEAGUERED SUPPORTERS REALLY NEED RADIO LIBERTY HIS FOREIGN MINISTER ANDREI KOZYREV COULD RAISE THE MATTER WITH WARREN CHRISTOPHER MESSRS YELTSIN AND KOZYREV BELIEVE RADIO LIBERTY WORKS MESSRS CLINTON AND CHRISTOPHER APPARENTLY DON'T THE CONFRONTATION BETWEEN BORIS YELTSIN AND THE REACTIONARY CONGRESS OF PEOPLE'S DEPUTIES HAS REMINDED EVERYONE OF THE FRAGILITY OF DEMOCRACY IN RUSSIA THIS IS CLEARLY NOT THE TIME TO SHUT DOWN RADIO LIBERTY AND RADIO FREE EUROPE AS PRESIDENT CLINTON'S BUDGET WOULD DO AMERICA'S RADIO NETWORKS CAN PLAY A ROLE IN HELPING THE NATIONS OF EASTERN EUROPE FOUR OF WHICH POSSESS NUCLEAR WEAPONS REMAIN PEACEFUL AND DEMOCRATIC MIKHAIL GORBACHEV AND BORIS YELTSIN AGREE ON VERY LITTLE BUT THEY BOTH THINK RADIO LIBERTY WHICH BROADCASTS IN 11 LANGUAGES TO ALL PARTS OF THE FORMER SOVIET UNION SHOULDN'T BE SILENCED ON A RECENT TRIP TO GERMANY MR GORBACHEV SAID I THINK THE CURRENT CONDITION OF OUR DOMESTIC PRESS IS SUCH THAT PEOPLE OUGHT TO LISTEN TO RADIO LIBERTY THIS IS VERY IMPORTANT AT THE PRESENT TIME MR YELTSIN HAS LET RADIO LIBERTY OPEN A BUREAU IN MOSCOW AND HIS AMBASSADOR TO THE US VLADIMIR LUKIN PRAISES IT FOR DOING A GREAT AND USEFUL JOB AND PLAYING A GREAT EDUCATIONAL ROLE BUT THERE ARE SOME IN THE US CONGRESS WHO CAN'T WAIT TO ZERO OUT RFE/RL'S BUDGET THEY SAY FOLDING ITS OPERATIONS INTO THE VOICE OF AMERICA WOULD SAVE 60 MILLION THE FIRST YEAR AND ABOUT 100 MILLION THE YEAR AFTER MANY OF THESE SAME MEMBERS ARE SCRAMBLING TO KEEP OPEN OUTMODED MILITARY BASES IN THEIR DISTRICTS THAT COST FAR MORE NONETHELESS THEY WANT TO CLOSE THE RADIOS BY 1995 AND HAVE WON MR CLINTON'S BACKING THE EVENTS IN RUSSIA SHOULD PROMPT HIM TO RETHINK HIS POSITION IN CALLING ON THE WEST TO SUPPORT MR YELTSIN PRESIDENT CLINTON SAID LAST MONTH THAT IF AMERICA HAD BEEN WILLING TO SPEND TRILLIONS TO WIN THE COLD WAR SURELY WE SHOULD BE WILLING TO SPEND A TINY FRACTION OF THAT TO SUPPORT DEMOCRACY'S SUCCESS WHERE COMMUNISM FAILED THERE IS NO DOUBT THAT THE FEW BILLION DOLLARS SPENT ON RFE/RL OVER THE PAST 40 YEARS HAVE PROVED TO BE AMERICA'S BEST COLD WAR INVESTMENT IT STILL PAYS DIVIDENDS TODAY IN INDEPENDENT SLOVAKIA LISTENERSHIP HAS SURGED AS THAT COUNTRY'S MEDIA ARE REINED IN BY A REGIME OF AUTHORITARIAN BENT RADIO LIBERTY'S AUDIENCE IN RUSSIA HAS SOARED NOW THAT IT IS ON THE AM BAND A SURVEY LAST YEAR FOUND THAT 29 OF MOSCOW'S OPINION LEADERS HAD LISTENED TO IT IN THE PAST THREE MONTHS DOUBLE THE NUMBER WHO LISTENED TO THE BBC OR VOA CRITICS OF THE RADIOS SAY THAT AMERICA'S BROADCASTING NEEDS CAN BE HANDLED BY THE VOA BUT VOA'S MISSION IS ENTIRELY DIFFERENT IT EXISTS TO DESCRIBE AMERICA TO THE OUTSIDE WORLD RADIO LIBERTY AND RADIO FREE EUROPE ARE A SURROGATE SOURCE OF NEWS AND CULTURE IN COUNTRIES WHERE MANY NEWSPAPERS HAVE SHUT DOWN DUE TO LACK OF NEWSPRINT AND RADIO AND TV OUTLETS ARE STILL STATE OWNED VYACHESLAV CHORNOVIL HEAD OF THE OPPOSITION RUKH PARTY IN UKRAINE TOLD US ON A RECENT VISIT HERE THAT RADIO LIBERTY'S WORK WAS MUCH APPRECIATED THERE AS WELL BECAUSE ELECTRONIC MEDIA ARE EASILY SUBJECT TO MANIPULATION THE WEST'S VICTORY IN THE COLD WAR CAME AT A STEEP PRICE RADIO LIBERTY IS ONE WAY THE US CAN HELP ENSURE THAT THE VICTORY IN RUSSIA SURVIVES BUT BELTWAY POLITICS MAY KILL THIS VITAL TOOL UNLESS MR YELTSIN AND HIS ASSOCIATES EXPLAIN HOW SOMETHING SO SMALL CAN BE SUCH A BIG HELP 9304020005 930402 FEDERALMOGUL CORP SOUTHFIELD MICH FEDERALMOGUL CORP SAID IT SIGNED A LETTER OF INTENT TO SELL ITS WESTWIND AIR BEARINGS LTD UNIT FOR 17 MILLION IT WILL RETAIN A 20 EQUITY POSITION IN THE NEW WESTWIND OPERATING COMPANY UNDER TERMS OF THE PROPOSED TRANSACTION A UNIT OF THE KLEINWORT BENSON GROUP A LONDONBASED INVESTMENT BANKING GROUP WILL OWN 80 OF THE NEWLY FORMED COMPANY WHICH WILL RUN THE AIR BEARING SPINDLE BUSINESS FEDERALMOGUL WILL RETAIN A 20 EQUITY POSITION IN WESTWIND WHICH HAS ITS HEADQUARTERS IN POOLE ENGLAND FEDERALMOGUL SAID PROCEEDS FROM THE SALE WILL RESULT IN A 20CENT PERSHARE GAIN IN THE SECOND QUARTER 9304020004 930402 BUSINESS BRIEF KOOR INDUSTRIES LTD ISRAELI COMPANY SAYS NET INCREASED BY 45 LAST YEAR KOOR REPORTED POSITIVE WORKING CAPITAL OF 78 MILLION VS A WORKING CAPITAL DEFICIENCY OF 12 MILLION AT YEAREND 1991 SALES IN 1992 INCREASED TO 22 BILLION UP 47 FROM 21 BILLION IN 1991 OPERATING PROFIT REACHED 215 MILLION IN 1992 OR 97 OF SALES AS COMPARED WITH 64 THE PREVIOUS YEAR KOOR A HOLDING COMPANY WITH BUSINESSES PRINCIPALLY IN ELECTRONICS BUILDING SUPPLIES AND CHEMICALS IS BASED IN TEL AVIV KOOR HAS ABOUT 60 MILLION PRINCIPAL AMOUNT OF 85 NOTES TRADED ON THE AMERICAN STOCK EXCHANGE 9304020003 930402 CORRECTIONS & AMPLIFICATIONS MASCO INDUSTRIES INC SAID IT VISITED CERTAIN GENERAL MOTORS CORP PARTS PLANTS THAT ARE FOR SALE IT WAS INCORRECTLY REPORTED WEDNESDAY THAT MASCO'S SISTER COMPANY MASCO CORP VISITED THE PLANTS JOHN D MOYNAHAN EXECUTIVE VICE PRESIDENT OF GROUP INSURANCE FOR METROPOLITAN LIFE INSURANCE CO TESTIFIED ON BEHALF OF A HEALTH INSURERS GROUP AT A HEARING OF THE CLINTON ADMINISTRATION'S HEALTHCARE TASK FORCE AN ARTICLE TUESDAY INCORRECTLY IDENTIFIED HIM AS JACK MOYNIHAN OF METROPOLITAN LIFE ASSOCIATION THE STEPHENS FAMILY OF LITTLE ROCK ARK HOLDS A 38 STAKE IN WORTHEN BANKING CORP AN ARTICLE YESTERDAY INCORRECTLY SAID THE SHARES WERE HELD BY STEPHENS INC THE FAMILY'S INVESTMENT BANKING COMPANY CRAY COMPUTER CORP SAID THE GALLIUM ARSENIDE CHIPS USED IN THE CRAY3 SUPERCOMPUTER ARE PERFORMING AS PLANNED AN ARTICLE WEDNESDAY INCORRECTLY IMPLIED THAT THE CHIPS ARE CURRENTLY UNSTABLE MOBLEY ENVIRONMENTAL SERVICES INC AND CEMENTOS MEXICANOS SA WILL INVEST A TOTAL OF 20 MILLION IN A JOINT VENTURE TO FORM A NEW COMPANY AN ARTICLE YESTERDAY INCORRECTLY SAID THE COMPANIES WILL EACH INVEST 20 MILLION 9304020002 930402 THROWING CURVES ONE BASEBALL STATISTIC REMAINS A MYSTERY THE REAL BOTTOM LINE OWNERS HAVE BEEN WARNING OF CATASTROPHE FOR YEARS ECONOMISTS ARE SKEPTICAL THE GAMES ACCOUNTANTS PLAY BY TIMOTHY K SMITH AND ERLE NORTON STAFF REPORTERS OF THE WALL STREET JOURNAL WITH A NEW BASEBALL SEASON ABOUT TO BEGIN AND THE SPORT SAID TO BE ON THE BRINK OF A CRISIS TWO STATISTICS SHOULD BE BORNE IN MIND WHAT THESE STATISTICS REMIND US OF IS THAT BASEBALL IS A NATURAL HAVEN FOR PEOPLE WHO ARE MATHEMATICALLY CURIOUS AND HAVE WAY TOO MUCH TIME ON THEIR HANDS SO WHEN FINANCIAL GLOOM DESCENDS ON THE SPORT TEAM OWNERS TALK OF CRIPPLING LOSSES AND THE END OF THE GAME AS WE KNOW IT IS CALLED A POSSIBILITY WE CAN BE SURE THE NUMBERS HAVE BEEN WELL AND TRULY CRUNCHED CAN'T WE I CERTAINLY DON'T THINK THAT YOU CAN TAKE THEM AT FACE VALUE SAYS BILL JAMES THE BASEBALL WRITER AND STATISTICIAN EXTRAORDINAIRE WARNINGS OF CATASTROPHE IN BASEBALL HAVE BEEN REVERBERATING EVER SINCE CBS AND ESPN LET IT BE KNOWN THAT THEY HAD OVERPAID FOR THE RIGHTS TO BROADCAST GAMES NATIONALLY AND AREN'T INCLINED TO BID AS MUCH WHEN CONTRACTS ARE RENEWED NEXT YEAR THE SPECTER OF A DROP IN REVENUE WOULD RATTLE ANY INDUSTRY EVEN ONE THAT LIKE BASEBALL HAS UNREGULATED MONOPOLY POWER MUNICIPALLY SUBSIDIZED FACILITIES A DEPRECIATION ALLOWANCE FOR PERSONNEL AND NO FOREIGN OR DOMESTIC COMPETITION BUT IN BASEBALL'S CASE THE NEWS IS ESPECIALLY BAD BECAUSE PLAYER SALARIES KEEP RISING AND THE DIVERGENT TRENDS OF REVENUES AND SALARIES ARE SAID TO CARRY A DIRE IMPLICATION PROFESSIONAL BASEBALL IS ON THE WANE IN THE WORDS OF ALBERT SPALDING A FORMER PLAYER AND LEAGUE EXECUTIVE SALARIES MUST COME DOWN OR THE INTEREST OF THE PUBLIC MUST BE INCREASED IN SOME WAY IF ONE OR THE OTHER DOES NOT HAPPEN BANKRUPTCY STARES EVERY TEAM IN THE FACE GRANTED MR SPALDING HAS BEEN DEAD FOR 77 YEARS AND HE ISSUED THIS WARNING IN 1881 BUT HE SAID IN A NUTSHELL EXACTLY WHAT BASEBALLTEAM OWNERS ARE SAYING TODAY BASEBALL'S HEALTH IS AFFECTED BY INTANGIBLE HARDTOMEASURE FACTORS SUCH AS THE MODERN SHRINKING ATTENTION SPAN AND THE CONTINUING SCARCITY OF MINORITIES IN MANAGEMENT AND IN THE STANDS BUT THE GAME'S HEALTH IS MOST DIRECTLY DETERMINED BY ECONOMIC FACTORS THAT ARE BASIC TANGIBLE AND PRACTICALLY IMPOSSIBLE TO MEASURE THE TEAMS ARE PRIVATELY OWNED AND THEIR OWNERS UNDERSTANDABLY KEEP A FIRM LID ON THEIR FINANCIAL DATA NEVERTHELESS THE PRESEASON AIR OF CATASTROPHE HAS SOME ECONOMISTS SCRATCHING THEIR HEADS THE AVERAGE TEAM THEY NOTE PULLS IN 50 MILLION TO 60 MILLION OF ANNUAL REVENUE WHICH GOES TO SUPPORT 25 PLAYERS MORE AFTER SEPT 1 A HALFDOZEN COACHES THE FRONTOFFICE STAFF AND PLAYER DEVELOPMENT THE LEAGUES ARE EXEMPT FROM ANTITRUST LAWS AND WHEN A TEAM CHANGES HANDS INTERNAL REVENUE SERVICE RULES LET THE NEW OWNERS DEPRECIATE WHAT AMOUNTS TO A BIG CHUNK OF PLAYER CONTRACTS GANGS OF MILLIONAIRES SUE TO OBTAIN THE PRIVILEGE OF BUYING EXPANSION FRANCHISES HOW BAD CAN THINGS BE BASEBALL IS GOING THROUGH REALLY A SERIOUS ECONOMIC CRISIS SAYS PETER MAGOWAN SAFEWAY INC CHAIRMAN AND MANAGING GENERAL PARTNER OF THE INVESTOR GROUP THAT PAID 100 MILLION TO ACQUIRE THE SAN FRANCISCO GIANTS LAST FALL AND IMMEDIATELY SIGNED OUTFIELDER BARRY BONDS TO A 438 MILLION SIXYEAR CONTRACT RICHARD RAVITCH WHO IS REPRESENTING TEAM OWNERS IN LABOR NEGOTIATIONS WITH PLAYERS SAYS THE PLAYER COMPENSATION SYSTEM AND DISTRIBUTION OF REVENUE AMONG THE CLUBS MUST BE CHANGED IF BASEBALL IS GOING TO COMPETE EFFECTIVELY FOR THE ENTERTAINMENT DOLLAR IN THE DECADE AHEAD ECONOMISTS AND PLAYERS CONSIDER GRIM DIAGNOSES OF BASEBALL PERFECTLY ACCURATE ACCORDING TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND BROADLY SPEAKING BALONEY A BASEBALL TEAM HAS THREE STRONG INCENTIVES TO SHOW PAPER LOSSES TO OBTAIN A TAX WRITEOFF USUALLY TO OFFSET PROFITS FROM THE OWNER'S OTHER BUSINESSES TO PRESENT A BLEAK PICTURE IN LABOR NEGOTIATIONS WITH PLAYERS AND TO SCARE MUNICIPALITIES INTO SUBSIDIZING BASEBALL WITH ADDITIONAL TAX DOLLARS FOR A NEW ACCESS ROAD A PARKING LOT OR A WHOLE STADIUM IT'S ABSURD SAYS ANDREW ZIMBALIST A PROFESSOR OF ECONOMICS AT SMITH COLLEGE AND THE AUTHOR OF BASEBALL AND BILLIONS A BOOK ABOUT THE BASEBALL BUSINESS I'M QUITE CONVINCED THAT THE ECONOMIC RETURN ON BASEBALL IS VERY HIGH THE SCANT FIGURES THAT HAVE TRICKLED OUT OVER THE YEARS INDICATE THAT TEAM OWNERS GO TO CONSIDERABLE LENGTHS TO INFLATE EXPENSES AND DEFLATE REVENUE TURNER BROADCASTING SYSTEM INC WHICH OWNS THE BRAVES PAID THE TEAM 9 MILLION IN 1991 FOR A TV CONTRACT THAT OBSERVERS SAY IS WORTH SEVERAL TIMES THAT ANHEUSERBUSCH COS WHICH OWNS THE ST LOUIS CARDINALS RUNS CONCESSION REVENUE AT BUSCH STADIUM THROUGH AN AFFILIATED CORPORATION AND IT DOESN'T SHOW UP ON THE CARDINALS' BOOKS OWNERS COMMONLY FORM A CORPORATION TO BUY A TEAM LEND THE CORPORATION THE PURCHASE PRICE AND COLLECT INTEREST FROM IT POCKETING THE INTEREST PAYMENTS WHILE INCREASING TEAM EXPENSES OWNERS PAY THEMSELVES MULTIMILLIONDOLLAR SALARIES AND CONSULTING FEES AND THEY PILE EXPENSES INTO THE GENERAL AND ADMINISTRATIVE EXPENSE COLUMN ECONOMISTS SAY YOU'RE ALWAYS ON CLUB BUSINESS YOU GET AN UNLIMITED EXPENSE ACCOUNT SAYS GERALD SCULLY AN ECONOMIST WHO WROTE THE BUSINESS OF MAJOR LEAGUE BASEBALL ALL THIS LEADS PLAYERS TO MISTRUST TEAM OWNERS' FINANCIAL STATEMENTS AND HAS ENGENDERED AN IMPRESSIVE PERVERSITY CHRONIC LABOR STRIFE IN AN INDUSTRY WITH A MINIMUM WAGE OF 109000 A YEAR THAT IS THE MINIMUM CONTRACT AN OWNER CAN OFFER A MAJORLEAGUE PLAYER IN 1985 AS PART OF A NEGOTIATING STRATAGEM THE OWNERS OPENED THE BOOKS AND SHOWED THE PLAYERS' ASSOCIATION AUDITED FINANCIAL STATEMENTS INDICATING THAT THE TEAMS HAD HAD A COMBINED LOSS OF 42 MILLION IN THE PREVIOUS YEAR THE PLAYERS' ASSOCIATION HIRED ROGER NOLL A STANFORD UNIVERSITY ECONOMIST TO REVIEW THE FIGURES AND HE CONCLUDED THAT ALTHOUGH SOME TEAMS LOST MONEY OVERALL THEY HAD A COMBINED OPERATING PROFIT OF 9 MILLION NOT A BONANZA BUT CERTAINLY NOT A DISASTER FOR GENERATIONS BASEBALL HAS BEEN GOING THROUGH AN ECCENTRIC BUSINESS CYCLE DRIVEN BY RITUAL TANTRUMS IN 1965 WHEN 84 YEARS OF ROBUST GROWTH HAD PASSED SINCE ALBERT SPALDING'S ALARM A BOOK CALLED NO JOY IN MUDVILLE EXAMINED THE DECLINE AND FALL OF BASEBALL WHEN THE PLAYERS TURNED TO COLLECTIVE BARGAINING IN 1966 TEAM OWNERS SAID THE GAME WOULD NOT SURVIVE WHEN FREE AGENCY CAME ALONG IN 1976 AND CERTAIN PLAYERS COULD SELL THEIR SERVICES TO THE HIGHEST BIDDER BASEBALL OFFICIALS PREDICTED THAT COMPETITIVE BALANCE WOULD BE DESTROYED THAT THE ENTIRE AMERICAN LEAGUE WOULD FOLD AND THAT SEVERAL TEAMS IN THE NATIONAL LEAGUE WOULD STRIKE OUT TOO ALL THE WHILE THE VALUES OF FRANCHISES MEASURED BY THE PRICES AT WHICH THEY CHANGE HANDS HAVE RISEN INEXORABLY IN THE PAST 90 YEARS PRICES PAID FOR TEAMS HAVE DOUBLED ABOUT EVERY NINE YEARS AND THE PACE HAS PICKED UP LATELY ACCORDING TO ECONOMISTS RODNEY D FORT AND JAMES QUIRK COAUTHORS OF PAY DIRT A BOOK ABOUT THE BUSINESS OF PROFESSIONAL SPORTS THEY CALCULATE THAT FOR FRANCHISES THAT WERE SOLD IN THE 1970S AND THEN SOLD AGAIN IN THE 1980S ON AVERAGE IT TOOK ABOUT 55 YEARS TO DOUBLE AND FOR THE TWO FRANCHISES THE METS AND THE RANGERS SOLD TWICE IN THE 1980S ON AVERAGE IT TOOK A LITTLE LESS THAN THREE YEARS TO DOUBLE IN PRICE OWNERS SAY THIS LONG RIDE IS ENDING THE PRICE ESCALATION IS OVER SAYS JERRY REINSDORF CHAIRMAN OF THE CHICAGO WHITE SOX ON THE OTHER HAND FINANCIER ELI JACOBS IS ON THE VERGE OF SELLING THE BALTIMORE ORIOLES FOR 145 MILLION HE PAID 70 MILLION IN 1989 EXPANSION TEAMS IN COLORADO AND FLORIDA LAST YEAR FETCHED 95 MILLION APIECE EVEN SO TEAM OWNERS INSIST THAT THIS YEAR THE GAME REALLY IS IMPERILED THE PROBLEM THEY SAY IS THAT PLAYERS KEEP ASKING FOR MORE MONEY AND THAT SOME OWNERS MADDENED BY PENNANT LUST GIVE IT TO THEM CIVIC PRIDE THEY CONTEND WILL EVENTUALLY LEAD TEAMS TO SPEND SO MUCH ON PLAYER TALENT THAT THEY WILL GO BANKRUPT AND IT ISN'T JUST THE STARS' MINDBOGGLING CONTRACTS THAT THREATEN THE GAME OWNERS SAY IT IS ALSO THE PRACTICE OF SALARY ARBITRATION ARBITRATION IS SUPPOSED TO BE A KIND OF COMPROMISE BETWEEN A PLAYER'S INDENTURE HIS FIRST THREE YEARS IN THE MAJOR LEAGUES AND HIS FREEDOM WHICH HE OBTAINS AFTER SIX YEARS IF A PLAYER AND HIS TEAM CAN'T AGREE ON HIS SALARY DURING THIS INTERVAL AN INDEPENDENT ARBITRATOR PICKS EITHER THE AMOUNT DEMANDED BY THE PLAYER OR THE AMOUNT OFFERED BY THE TEAM BECAUSE THE ARBITRATOR TAKES INTO CONSIDERATION WHAT COMPARABLE PLAYERS AT OTHER TEAMS ARE PAID THE TEAMS MUST PAY PLAYERS WHAT OUR DUMBEST COMPETITORS PAY PLAYERS SAYS MR REINSDORF WHEN THE PRACTICE WAS ADOPTED 20 YEARS AGO NEW YORK YANKEES PRINCIPAL OWNER GEORGE STEINBRENNER WARNED THAT ARBITRATION WILL BE THE CANCER OF BASEBALL AND THOUGH THE INTERVENING YEARS HAVE BEEN THE MOST PROSPEROUS IN BASEBALL'S HISTORY OWNERS SAY THE TIME HAS FINALLY COME WHEN ONLY RICH TEAMS IN BIG MARKETS WILL BE ABLE TO PAY COMPETITIVE SALARIES THUS COMPETITIVE BALANCE WILL BE LOST AND THE GAME DESTROYED ECONOMISTS SAY HOWEVER THAT ARBITRATION ACTUALLY IS A FAIRLY GOOD COMPROMISEAND A NECESSARY ONE BECAUSE IN ADDITION TO BEING A MONOPOLY BASEBALL IS FOR THE FIRST YEARS OF A PLAYER'S CAREER A MONOPSONY A MARKET WITH ONLY ONE BUYER SOME OBSERVERS CONTEND THAT EVEN UNDER ARBITRATION PLAYERS STILL AREN'T PAID WHAT THEY ARE WORTH MR ZIMBALIST CALCULATES THAT PLAYERS WITH ARBITRATION RIGHTS ARE PAID BETWEEN 50 AND 64 OF THE VALUE OF THEIR CONTRIBUTION TO TEAM REVENUE OVERALL PLAYER SALARIES EQUAL ABOUT 58 OF REVENUE SAYS MR RAVITCH THE LABOR NEGOTIATOR FOR THE OWNERS MR SCULLY SAYS IT IS MORE LIKE 50 NEITHER NUMBER IS PARTICULARLY HIGH FOR A LABORINTENSIVE BUSINESS MANAGEMENT CONSULTANTS SAY ADVERTISING AGENCIES AND CONSULTING FIRMS GENERALLY SPEND BETWEEN 50 AND 60 OF REVENUE ON WORKER PAY ACCORDING TO ALAN M JOHNSON OF JOHNSON ASSOCIATES A NEW YORK MANAGEMENT CONSULTING FIRM RUSSELL G ROBERTS OF SIBSON & CO IN CHICAGO ANOTHER CONSULTING FIRM SAYS THE PERCENTAGE CAN BE AS HIGH AS 75 AT LAW FIRMS THE SKY'S NOT GOING TO FALL MR SCULLY SAYS WHEN PLAYER SALARIES REACH 60 TO 65 OF REVENUE HE PREDICTS THE BIDDING WILL STOP YOU'RE NOT GOING TO BID YOURSELF INTO BANKRUPTCY ON THE REVENUE SIDE OF THE EQUATION OWNERS PREDICT THAT THE VALUE OF NATIONAL TELEVISION CONTRACTS WILL BE HALVED FROM ABOUT 350 MILLION A YEAR CURRENTLY WHEN THEY ARE PUT OUT FOR BID AGAIN NEXT YEAR PLAYERS DON'T DENY THAT THE CONTRACTS MAY SHRINK AFTER ALL CBS INC HAS ESTIMATED A TOTAL AFTERTAX LOSS ON ITS CURRENT FOURYEAR CONTRACT OF 170 MILLION BUT THEY ARGUE THAT THIS WON'T BE CATASTROPHIC BECAUSE NATIONAL BROADCASTING ACCOUNTS FOR LESS THAN A QUARTER OF BASEBALL'S REVENUE MR FORT GOES SO FAR AS TO PREDICT THAT INCREASES IN THE VALUE OF LOCAL CABLETV CONTRACTS WILL MORE THAN SWAMP WHAT'S GOING TO HAPPEN IN A NATIONAL TV CONTRACT AND WHATEVER HAPPENS IN THE IMMEDIATE FUTURE BASEBALL OBSERVERS SUGGEST THAT IF THE MUCHDISCUSSED VISION OF INTERACTIVE PAYPERVIEW MEDIA COMES TO PASS THE FUTURE VALUE OF BASEBALL AS SOFTWARE WILL BE VAST BEYOND CALCULATION ECONOMISTS AND PLAYER REPRESENTATIVES SAY BASEBALLTEAM OWNERS' PUBLIC WORRYING AND THE ATTENDANT BLIZZARD OF NAILBITING PRESS COVERAGE ARE LINKED TO THE CURRENT NEGOTIATIONS OVER THE SPORT'S COLLECTIVEBARGAINING AGREEMENT THIS IS ALL PART OF A PLOY THAT'S BEEN GOING ON FOR 100 YEARS MR SCULLY SAYS MARVIN MILLER THE FORMER HEAD OF THE PLAYERS' ASSOCIATION SAYS IT'S A GAME AND I EXPECT THEM TO PLAY IT IT IS RARE THAT A COMPANY TALKS ENTHUSIASTICALLY OR OPTIMISTICALLY ABOUT ITS PROFITS UNLESS THERE IS SOME SPECIAL REASON LIKE A STOCK ISSUE AND BASEBALL IS NO EXCEPTION TO THIS IN THE CURRENT LABOR NEGOTIATIONS WHICH HAVE BEEN GOING ON SINCE JANUARY OWNERS ARE EXPECTED TO ARGUE THAT SEVERAL TEAMS ARE ON THE BRINK OF BANKRUPTCY PLAYERS ARE EXPECTED TO ARGUE THAT RICH TEAMS SHOULD SHARE MORE OF THEIR REVENUE WITH POOR ONES OWNERS ARE EXPECTED TO ARGUE THAT THEY WILL DO THAT IF PLAYERS ACCEPT A CAP ON THEIR SALARIES PLAYERS ARE EXPECTED TO LAUGH IN THE OWNERS' FACES AND THE WHOLE THING IS EXPECTED TO SLIDE INTO THE USUAL SCUFFLE WILL IT KILL THE GAME I DON'T KNOW WHERE IT'S GOING TO STOP EXCEPT AT THE END SAYS YOGI BERRA 9304020001 930402 ECONOMY ADMINISTRATION ALTERS PROPOSAL FOR ENERGY TAX MODIFICATIONS INCLUDE BREAK FOR HOME HEATING OIL TO AVERT OPPOSITION BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN AN EFFORT TO APPEASE POLITICALLY POTENT INTERESTS THAT MIGHT HAVE SIDETRACKED ITS PROPOSED ENERGY TAX THE CLINTON ADMINISTRATION HAS GIVEN A BIG BREAK TO HOME HEATING OIL OTHERS THAT FARED RELATIVELY WELL AS THE TREASURY RELEASED A NEW SET OF DETAILS MODIFYING PORTIONS OF THE TAX WERE ETHANOL AND METHANOL PRODUCERS COAL COMPANIES AND INTERNATIONAL AIRLINES NOT EVERYBODY THOUGH DID BETTER FOR EXAMPLE THE ADMINISTRATION CONFIRMED THAT IT HAS DECIDED TO PLAY HARDBALL WITH STATE UTILITY REGULATORS AND POWER COMPANIES FEAR THEY MAY GET CAUGHT IN THE MIDDLE THE TREASURY ALSO SAID IT WOULD INSTITUTE A USE TAX ON FUEL THAT'S CONSUMED BEFORE THE POINT AT WHICH THE ENERGY TAX IS TO BE COLLECTED MOREOVER THE VERY IDEA OF AN ENERGY TAX CONTINUES TO FACE STIFF RESISTANCE FROM A LARGE NUMBER OF CORPORATIONS AND BUSINESS GROUPS SUCH AS THE AMERICAN PETROLEUM INSTITUTE AND NATIONAL ASSOCIATION OF MANUFACTURERS NONETHELESS BY TINKERING WITH ITS PROPOSAL THE ADMINISTRATION IS BOUND TO PICK UP SOME ADDITIONAL SUPPORT OFFICIALS ALSO SAY THAT DESPITE THE CHANGES THE TAX SHOULD STILL RAISE 71 BILLION OVER FIVE YEARS UNDER ITS ORIGINAL PLAN ISSUED IN FEBRUARY HOME HEATING OIL WOULD HAVE BEEN TAXED AT A BASIC RATE OF 257 CENTS PER MILLION BRITISH THERMAL UNITS OR ABOUT 1000 CUBIC FEET FOR THE FIRST YEAR AND THEN A SUPPLEMENTAL OIL TAX OF 342 CENTS PER MILLION BTUS WOULD HAVE BEEN PHASED IN BUT YESTERDAY THE TREASURY SAID IT WOULD KEEP HEATING OIL AT THE BASIC RATE BTUS MEASURE THE HEAT CONTENT OF FUEL THE SHIFT MARKS A WIN FOR TWO KEY DEMOCRATS SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE AND SEN EDWARD KENNEDY OF MASSACHUSETTS WHO HAVE BEEN PRESSING THE ADMINISTRATION ON THE ISSUE A NUMBER OF MODERATE REPUBLICANS FROM NEW ENGLAND INCLUDING SEN JOHN CHAFEE OF RHODE ISLAND ALSO SHOULD BE PLEASED BY THE REVISION THE ADMINISTRATION IS SEEKING THE COOPERATION OF MR CHAFEE AND HIS GOP COLLEAGUES AS IT TRIES TO PUSH THROUGH ITS DEFICITREDUCTION PACKAGE UNDER THE ORIGINAL PLAN PEOPLE FROM NEW ENGLAND WOULD HAVE PAID 117 IN ENERGY TAXES FOR EVERY 100 PAID BY THE AVERAGE AMERICAN BY DOING AWAY WITH THE SUPPLEMENTAL TAX THAT FIGURE DECLINES TO 112 ACCORDING TO TREASURY ESTIMATES MEANWHILE AS ANTICIPATED OTHER INDUSTRIES ALSO MADE OUT BETTER UNDER THE LATEST PROPOSAL THAN THEY HAD WITH THE ADMINISTRATION'S ORIGINAL PLAN FOR INSTANCE THE TREASURY HAD FIRST SAID THAT IT WOULD COLLECT THE TAX ON COAL AT THE MINE MOUTH BUT NOW IT SAYS THE TAX WOULD BE IMPOSED ON THE ELECTRIC UTILITY OR INDUSTRIAL ENDUSER THAT'S WELCOME NEWS FOR THE NATION'S COAL PRODUCERS WHO HAD BEEN FRETTING THAT A TAX AT THE MINE WOULD TRIGGER AN UNINTENDED COMPOUNDED PRICE INCREASE FOR COAL PERHAPS THE MOST CONTROVERSIAL PART OF THE PLAN WILL COME AS THE ADMINISTRATION PRESSURES STATE REGULATORS TO PASS THE TAX THROUGH TO CONSUMERS AS PART OF A CAMPAIGN TO PROMOTE CONSERVATION AS EXPECTED THE TREASURY SAID IT WOULD DENY UTILITIES CERTAIN TAX BENEFITS UNLESS REGULATORS AGREE TO A PASSTHROUGH BECAUSE THESE FEDERAL TAX BENEFITS HELP HOLD DOWN CUSTOMER RATES IT IS IN THE REGULATORS' INTEREST TO SEE THE UTILITIES USE THEM IT'S AN ABSURB PROPOSITION SAID MICHAEL FOLEY DIRECTOR OF FINANCIAL ANALYSIS FOR THE NATIONAL ASSOCIATION OF REGULATORY UTILITY COMMISSIONERS WE SEE THIS AS A NEEDLESS INTRUSION ON THE LEGITIMATE AFFAIRS OF STATE GOVERNMENT THE UTILITIES WORRY THAT SOME REGULATORS IN TRYING TO STAND UP TO THE ADMINISTRATION MAY DENY THE PASSTHROUGH THAT WOULD FORCE THE UTILITIES TO ABSORB THE ENERGY TAX WHILE ALSO LEAVING THEM WITHOUT THE TAX BENEFITS BEING HELD HOSTAGE IF THE REGULATORS SAY NO THEN YOU LOSE TWICE SAID TOM KUHN PRESIDENT OF THE EDISON ELECTRIC INSTITUTE WHICH REPRESENTS 180 UTILITY COMPANIES SERVING THREEQUARTERS OF THE NATION'S ELECTRICITY CUSTOMERS MICHAEL BALY PRESIDENT OF THE AMERICAN GAS ASSOCIATION CALLED THE WITHHOLDING OF TAX BENEFITS A SILLY HAMMER AND DESPITE THE ADMINISTRATION'S ASSERTIONS THAT IT WANTS TO ENCOURAGE THE PRODUCTION OF NATURAL GAS WHICH IS RELATIVELY CLEAN BURNING AND PLENTIFUL DOMESTICALLY MR BALY PREDICTED THAT THE ENERGY TAX WOULD HAVE PRECISELY THE OPPOSITE EFFECT IN THE DETAILS DISCLOSED YESTERDAY THERE WERE OTHER ALTERATIONS FROM AND CLARIFICATIONS OF THE EARLIER PLAN FOR THE FIRST TIME THE TREASURY SAID LIQUEFIED PETROLEUM GASES WHETHER PRODUCED FROM NATURAL GAS OR CRUDE OIL WOULD BE TAXED AT THE 257 CENTS PER MILLION BTUS RATE ALSO TREASURY OFFICIALS SAID HYDRO AND NUCLEAR POWER WOULD BE TAXED AT A SLIGHTLY LOWER RATE THAN ORIGINALLY PLANNED IN ADDITION THE TREASURY SPELLED OUT 13 EXEMPTIONS TO THE ENERGY TAX INCLUDING ONE THAT HAD BEEN PREVIOUSLY ANNOUNCED FOR ETHANOL AND METHANOL NEW ON THE LIST WAS AN EXEMPTION FOR BUNKER AND JET FUEL USED FOR INTERNATIONAL TRANSPORTATION ALTHOUGH THE AIR TRANSPORT ASSOCIATION IS STILL UPSET THAT THE ENERGY TAX COULD COST THE AIRLINE INDUSTRY 900 MILLION A YEAR IT ACKNOWLEDGES THAT THIS IS A 35 SAVINGS FROM EARLIER ESTIMATES ALSO EXEMPTED WAS CERTAIN FUEL USED IN THE PRODUCTION OF OTHER FUEL WHICH SHOULD HELP ATLANTIC RICHFIELD CO AND OTHERS OPERATING IN ALASKA'S PRUDHOE BAY FIELD BUT NOT EVERYONE IS SO PLEASED AND SOME BELIEVE THAT IN GIVING IN TO VARIOUS INTERESTS THE ADMINISTRATION HAS MADE THE ENERGY TAX PROPOSAL SUSCEPTIBLE TO EVEN MORE SPECIAL PLEADING ONCE IT REACHES CAPITOL HILL I DON'T KNOW HOW POLITICALLY INTELLIGENT IT IS TO ALLOW ALL THESE EXEMPTIONS SAID ED ROTHSCHILD ENERGY POLICY DIRECTOR FOR THE CONSUMER GROUP CITIZEN ACTION I'M AFRAID WE'RE GOING TO END UP WITH A BTU TAX THAT'S A SHADOW OF ITS FORMER SELF 9304020191 930308 PRESIDENT CLINTON NORMALIZE TIES WITH VIETNAM BY ALBERT R HUNT HO CHI MINH CITY A FIRSTTIME VISITOR ARRIVING IN VIETNAM WITH VAGUE EXPECTATIONS OF DEPRESSING POVERTY AND DREARY REPRESSION IS IN FOR A BIG SURPRISE INSTEAD SAIGON WHICH IS WHAT EVERYONE BUT COMMUNIST APPARATCHIKS STILL CALLS THIS CITY IS BUOYANT DOMINATED BY BUSTLING MOTOR BIKES AND HUSTLING STREET ENTREPRENEURS DOLLARS ARE MORE IN DEMAND THAN DONG AND THE MOVIE IN THE ROOM AT THE MODERNIZED CONTINENTAL HOTEL IS TEENAGE MUTANT NINJA TURTLES IN A COUNTRY WHERE B52 BOMB CRATERS STILL LITTER THE LANDSCAPE AMERICANS ARE CELEBRATED EVEN IN A LITTLE VILLAGE IN THE MEKONG DELTA WHERE WESTERNERS HAVEN'T BEEN SEEN IN YEARS WHEN THE FAR EASTERN ECONOMIC REVIEW'S MURRAY HIEBERT TELLS THE VILLAGERS WE'RE AMERICANS NOT RUSSIANS AS THEY HAD FIRST THOUGHT AN ELDERLY LADY RESPONDS AMERICANS ARE GOOD AMERICA AGAIN FACES A DECISION ABOUT THE NATION THAT HAS BEDEVILED OUR FOREIGN POLICY FOR DECADES THE ISSUE IS WHETHER TO END THE USDIRECTED AND NOW CLEARLY COUNTERPRODUCTIVE EMBARGO ON TRADE AND ACCESS TO INTERNATIONAL LENDERS AFTER BEING PLAGUED BY HIS EVASION OF THE VIETNAM WAR THROUGHOUT THE CAMPAIGN AND THE GAYSINTHEMILITARY FIASCO IN HIS FIRST WEEK IN OFFICE MR CLINTON UNDERSTANDABLY DOESN'T HAVE NORMALIZING RELATIONS WITH VIETNAM AT THE TOP OF HIS AGENDA BUT THIS PRESIDENT WHO INSISTS THAT FOREIGN POLICY HAS TO BE DRIVEN BY THE NEW GLOBAL ECONOMY CAN ILL AFFORD TO CONTINUE STIFFING ASIA THE REGION WHERE ECONOMIC GROWTH IS MOST DYNAMIC HIS POLICY OR NONPOLICY TOWARD JAPAN AND CHINA IS THE MOST CRUCIAL BUT VIETNAM IS A PART OF THE PUZZLE TOO FOR ECONOMIC POLITICAL AND PSYCHOLOGICAL REASONS THE ALLURE OF VIETNAM IS EASY TO EXAGGERATE DESPITE OUTWARD APPEARANCES THIS REMAINS A RELATIVELY POOR COUNTRY AND IT STILL HAS A DICTATORIAL COMMUNIST GOVERNMENT THE BANKING SYSTEM IS A SHAMBLES NONSTATE ENTERPRISES FIND IT EXCEEDINGLY DIFFICULT TO OBTAIN CAPITAL INFRASTRUCTURE NEEDS ARE ENORMOUS AND THE RICH AGRICULTURAL SECTOR NEEDS REFORM THE HEALTHCARE AND EDUCATIONAL SYSTEMS HAVE DETERIORATED IN RECENT YEARS FOREIGN INVESTORS FACE NIGHTMARISH BUREAUCRACIES MOREOVER HUMAN RIGHTS REMAIN A MAJOR CONCERN THE INFAMOUS REEDUCATION CAMPS HAVE BEEN DISMANTLED BUT THERE STILL ARE POLITICAL PRISONERS WRITERS WHO DON'T FOLLOW THE PARTY LINE ON MAJOR ISSUES DO SO AT THEIR PERIL BUT THE CHANGES IN VIETNAM ARE PROFOUND SOME TIME AGO THE US LAID DOWN THE CONDITIONS IT WANTED MET BEFORE IT WOULD MOVE TO NORMALIZE RELATIONS WITHDRAWAL FROM CAMBODIA HELP IN RESOLVING THE FATE OF AMERICAN MIAS COOPERATION IN DEALING WITH THE STATUS OF AMERASIAN OFFSPRING OF THE WAR BY ANY ACCOUNT THE VIETNAMESE HAVE MORE THAN MET EXPECTATIONS WE LAID OUT A ROADMAP WITHOUT EXCEPTION THE VIETNAMESE HAVE ADHERED TO THAT ROADMAP SAYS REPUBLICAN SEN JOHN MCCAIN OF ARIZONA A NAVAL FLIER WHO WAS HELD PRISONER FOR 5 1/2 YEARS DURING THE WAR ECONOMICALLY ONE NEED ONLY SEE THE STREAM OF TAIWANESE KOREAN AND JAPANESE BUSINESSMEN IN SAIGON RESTAURANTS AND NIGHTCLUBS TO GET A SENSE OF WHAT'S HAPPENING THE VIETNAMESE REFORMS INSTINCTIVELY WERE MODELED AFTER THE CHINESE SAYS THOMAS VALLELY DIRECTOR OF THE INDOCHINA PROGRAM AT HARVARD AND ONE OF AMERICA'S FOREMOST VIETNAM EXPERTS THEY'RE WAY AHEAD OF THE FORMER SOVIET UNION AND MOST OF EASTERN EUROPE THEY ACTUALLY HAVE MARKETS WORKING AMERICAN BUSINESS STARTS OFF WELL BEHIND IN CAPITALIZING ON THIS POTENTIALLY LUCRATIVE MARKET OF 71 MILLION PEOPLE YET THERE IS GREAT OPPORTUNITY IN THE RESERVOIR OF GOOD WILL TOWARD AMERICANS TO SAY NOTHING OF LINGERING VIETNAMESE SUSPICIONS ABOUT SOME OF THEIR ASIAN NEIGHBORS THERE'S ALSO A COMPELLING POLITICAL CASE FOR AMERICA TO NORMALIZE RELATIONS WITH VIETNAM AN AMERICAN ECONOMIC AND MILITARY PRESENCE IN ASIA IS ESSENTIAL AND IS DESIRED BY MOST ASIANS TO LET CHINA AND JAPAN DIVIDE UP INFLUENCE IN THIS REGION IS INSANE VIETNAM STILL HAS AN AWESOMELY EFFECTIVE ARMY MOREOVER GIVEN ITS HISTORY IT COULD SERVE AS A COUNTER OF SORTS TO CHINA IN SOUTHEAST ASIA MR VALLELY RECALLS WHEN HE FIRST CAME TO THIS COUNTRY AS A YOUNG MARINE IN 1969 I WENT TO VIETNAM TO MAKE SURE THE CHINESE DIDN'T TAKE OVER ASIA ONE OF THE BEST WAYS TO GUARD AGAINST THAT TODAY IS TO CHANGE OUR POLICIES TOWARD VIETNAM FINALLY HISTORY HAS MOVED BEYOND THE AGONIES OF VIETNAM SEN JOHN KERRY D MASS A VIETNAM VETERAN THINKS NORMALIZATION CAN FINALLY RESOLVE THE TRAUMAS ONCE VETERANS START GOING BACK TO VIETNAM AND MAKING PEACE WITH THEMSELVES IT ALL WILL MELT AWAY HE SAYS SOME OF THE PROFESSIONAL AGITATORS ON THE POWMIA ISSUE AND SOME MISLED FAMILIES NEVER WILL ACCEPT THE PAINSTAKING WORK OF SENS KERRY AND MCCAIN LAST YEAR IN DEMONSTRATING THAT THERE IS VERY LITTLE LIKELIHOOD OF ANY REMAINING AMERICAN PRISONERS IN VIETNAM ANY MOVE BY PRESIDENT CLINTON TO DO WHAT'S RIGHT ON VIETNAM WILL SURELY AROUSE FRINGE FIGURES LIKE CALIFORNIA GOP REP BOB DORNAN WHO WILL DEMAGOGUE THE ISSUE BY RAISING MR CLINTON'S PAST BUT AS SEN MCCAIN SAYS THE CLIMATE IS MUCH DIFFERENT AND MORE ACCEPTING TODAY EVEN THE VETERANS OF FOREIGN WARS NOW FAVORS EXPANDING TIES WITH VIETNAM AND IF MR CLINTON DOES TAKE THAT STEP A SUPERB IDEA STOLEN FROM PETER KANN MY PUBLISHER WOULD BE TO NAME AS AMBASSADOR FORMER JOINT CHIEFS OF STAFF CHAIRMAN JOHN VESSEY WHO WAS PRESIDENT BUSH'S DESIGNATED REPRESENTATIVE IN MIA NEGOTIATIONS HELPING OUR VANQUISHED FOES BACK TO THEIR FEET IS IN THE FINEST TRADITION OF AMERICA IT WOULD ONLY ADD TO THAT TRADITION TO DO THE SAME FOR THE ONE COUNTRY THAT DEFEATED US MR HUNT IS THE JOURNAL'S WASHINGTON BUREAU CHIEF SEE RELATED LETTER LETTERS TO THE EDITOR DON'T SHAKE HANDS WITH VIETNAM YET WSJ APRIL 1 1993 9303080012 9304020189 930308 MANAGER'S JOURNAL WHEN CUSTOMER RESEARCH IS A LOUSY IDEA BY WILLARD I ZANGWILL CUSTOMER RESEARCH IS OFTEN TOUTED AS A NECESSARY PRECURSOR TO PRODUCT INTRODUCTION THE PROBLEM ESPECIALLY FOR INNOVATIVE PRODUCTS IS THAT IT OFTEN PROVES WRONG FOR EXAMPLE HAIR STYLING MOUSSE IS NOW A MASSIVE HIT YET IN ITS INITIAL MARKET TESTS IN THE US IT FLOPPED GOOPY AND GUNKY WAS WHAT PEOPLE SAID ABOUT IT AND THEY DID NOT LIKE ITS FEEL WHEN IT MOOSHED THROUGH THEIR HAIR SIMILARLY WHEN THE TELEPHONE ANSWERING MACHINE WAS CONSUMER TESTED IT FACED AN ALMOST UNIVERSALLY NEGATIVE REACTION BACK THEN MOST INDIVIDUALS FELT THAT USING A MECHANICAL DEVICE TO ANSWER A PHONE WAS RUDE AND DISRESPECTFUL TODAY OF COURSE MANY PEOPLE REGARD THEIR ANSWERING MACHINES AS INDISPENSABLE AND CONSIDER SCHEDULING THEIR DAILY ACTIVITIES WITHOUT THEM AS IMPOSSIBLE IN THE SAME VEIN THE COMPUTER MOUSE IN ITS INITIAL TESTING FLUNKED BEING EVALUATED BY POTENTIAL CUSTOMERS AS AWKWARD AND UNNECESSARY BECAUSE OF THESE DIFFICULTIES SOME COMPANIES HAVE GONE SO FAR AS TO ELIMINATE CUSTOMER RESEARCH FOR THEIR INNOVATIVE PRODUCTS ACCORDING TO SONY EXECUTIVE KOZO OHSONE WHEN YOU INTRODUCE PRODUCTS THAT HAVE NEVER BEEN INVENTED BEFORE WHAT GOOD IS MARKET RESEARCH THE WALKMAN WAS LAUNCHED WITHOUT THE STANDARD CUSTOMER RESEARCH AS IS TYPICAL AT SONY WITH CUSTOMER RESEARCH NOT ONLY COSTLY BUT OFTEN IN ERROR HOW CAN A MANAGER DETERMINE THE INNOVATIONS CUSTOMERS WANT THE SOLUTION MAY BE DESIGNFORRESPONSE A NEW APPROACH IN WHICH A FIRM USES SPEED AND FLEXIBILITY TO GAIN CUSTOMER INFORMATION INSTEAD OF OR IN ADDITION TO STANDARD CUSTOMER RESEARCH TO ILLUSTRATE SONY OBTAINS INFORMATION FROM THE ACTUAL SALES OF VARIOUS WALKMAN MODELS AND THEN QUICKLY ADJUSTS ITS PRODUCT MIX TO CONFORM TO THOSE SALES PATTERNS SPECIFICALLY THE PROCESS DESIGN OF EACH WALKMAN MODEL IS BASED ON A CORE PLATFORM CONTAINING THE ESSENTIAL TECHNOLOGY BUT THE PLATFORM IS DESIGNED TO BE FLEXIBLE WHICH ALLOWS A WIDE RANGE OF MODELS TO BE EASILY BUILT ON IT SUCH AS A BEACH MODEL A CHILD'S MODEL ONE THAT ATTACHES TO THE ARM AND SO ON DEPENDING UPON WHICH MODELS SELL THE MODELS OR FEATURES ARE CHANGED BUT THE PLATFORM REMAINS THE SAME IF PINK IS A HOT SELLING COLOR THEY MAKE MORE PINK MODELS IF BEACH MODELS SELL WELL THEY MAKE MORE OF THE EXISTING MODELS AND ALSO EXPAND THE LINE THIS TECHNIQUE IS FAR MORE ACCURATE THAN DECIDING WHAT TO MAKE USING TRADITIONAL CUSTOMER RESEARCH SIMILARLY WITHOUT CUSTOMER RESEARCH EVERY SEASON SEIKO THROWS INTO THE MARKET SEVERAL HUNDRED NEW MODELS OF ITS WATCHES THOSE THAT CUSTOMERS BUY IT MAKES MORE OF THE OTHERS IT DROPS CAPITALIZING ON THE DESIGNFORRESPONSE STRATEGY SEIKO HAS A HIGHLY FLEXIBLE DESIGN AND PRODUCTION PROCESS THAT LETS IT QUICKLY AND INEXPENSIVELY INTRODUCE PRODUCTS DO THEY WORRY IF A HIGH PERCENTAGE OF THE WATCHES THEY INTRODUCE FAIL REJECTED BY THE CUSTOMERS NO UNLESS THE FAILURE RATE IS EXTREMELY HIGH BECAUSE THEIR FAST FLEXIBLE PRODUCT DESIGN PROCESS HAS SLASHED THE COST OF FAILURE WHEN CREATING A NEW MAGAZINE HEARST MAGAZINES ALSO FOLLOWS THIS APPROACH HEARST LEARNED THAT IT WAS ALMOST IMPOSSIBLE TO CUSTOMER TEST THE MAGAZINE IDEAS AND THAT IT WAS BETTER TO LAUNCH THE MAGAZINE AND SEE WHAT HAPPENS TO DO THIS HEARST HAS CREATED A SPECIAL GROUP OF EDITORS WITH THE TALENT AND FLEXIBILITY TO LAUNCH ALMOST ANY NEW MAGAZINE BASED UPON THE INITIAL SALES OF THE NEW MAGAZINE THEY WILL EITHER REVISE THE CONTENT AND FORMAT OR DROP THE PUBLICATION ANY NEW MAGAZINE THAT PROVES SUCCESSFUL IS SPUN OFF TO RUN INDEPENDENTLY CRUCIAL TO THIS APPROACH HOWEVER IS REDUCING THE COST OF THE FAILURES BY KEEPING EXPENSES DOWN HEARST ACCOMPLISHES THIS BY INITIALLY HIRING ONE OVERALL EDITOR ON A SHORTTIME BASIS USING STRINGERS AS WRITERS AND BORROWING ADVERTISING PEOPLE ALSO WITH EXPERIENCE IT HAS DISCOVERED THE TRICKS OF LAUNCHING NEW MAGAZINE PRODUCTS INEXPENSIVELY FOR EXAMPLE IT HAS LEARNED HOW TO TEST DIFFERENT COVER DESIGNS EFFICIENTLY AND HOW TO TEST SALES IN DIFFERENT MARKETS SUCH AS NEWSSTANDS OR SUBSCRIBERS MANY OTHER FIRMS ALSO FOLLOW THE STRATEGY OF USING CUSTOMER RESEARCH DATA LESS AND FASTFLEXIBLE RESPONSE MORE WITH THE FOOD INDUSTRY IN THE LEAD ONE OF THE PROBLEMS WITH CUSTOMER RESEARCH INTO FOODS IS THAT A PERSON'S DESIRE FOR FOOD IS POWERFULLY INFLUENCED BY THE AMBIANCE THE DINING COMPANIONS AND WHAT FOODS WERE EATEN RECENTLY ALL OF WHICH CONFOUND AND CONFUSE THE RESULTS OF THE CUSTOMER RESEARCH EVEN MORE ERRATIC ARE THE RESULTS WITH CHILDREN'S FOOD SAY A NEW CEREAL OR SNACK THE RESPONSES OF KIDS ARE STRONGLY SWAYED BY HOW WELL THEY LIKE THE PEOPLE DOING THE TEST AND THE PLAYTHINGS AVAILABLE WORSE KIDS QUICKLY CHANGE THEIR MINDS AND IN A TASTE TEST OF SEVERAL FOODS A CHILD CAN JUDGE ONE FOOD THE BEST BUT ONE HOUR LATER PROCLAIM THE SAME FOOD AS ICKY ARTHUR D LITTLE & CO DISCOVERED THAT OF ALL NEW CEREALS INTRODUCED TO THE MARKET 92 HAD FAILED SINCE USING THE FULL ARRAY OF CUSTOMER RESEARCH TECHNIQUES PRODUCES A SUCCESS RATE OF ONLY 8 MORE AND MORE COMPANIES ARE REVISING THEIR THINKING ABOUT DOING CUSTOMER RESEARCH AS USUAL INNOVATIVE FIRMS SUCH AS KEEBLER AND THE LEADING CEREAL MAKERS ARE REDUCING THEIR EXPENDITURE FOR CUSTOMER RESEARCH AND INSTEAD ARE VIGOROUSLY CUTTING THE COST OF LAUNCHING NEW PRODUCTS INCLUDING MAKING THEIR MANUFACTURING PROCESSES MORE FLEXIBLE DESIGNFORRESPONSE ENABLES FIRMS NOT ONLY TO EMPLOY CUSTOMER RESEARCH WHEN BENEFICIAL BUT ALSO TO RESPOND QUICKLY TO WHAT THE CUSTOMERS REALLY WANT KEEPING THE FIRM ON TOP OF MARKET SHIFTS AND SURPRISES MR ZANGWILL IS A PROFESSOR AT THE GRADUATE SCHOOL OF BUSINESS UNIVERSITY OF CHICAGO AND AUTHOR OF LIGHTNING STRATEGIES FOR INNOVATION LEXINGTON 1992 SEE RELATED LETTER LETTERS TO THE EDITOR TESTING THE WATERS BEFORE THE LAUNCH WSJ APRIL 1 1993 9303080159 9304020148 930302 INTERNATIONAL MEXICO'S UPSTART TAESA AIRLINES IGNITES PRICE WAR THAT COULD TEST ITS STRENGTH BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY LESS THAN A YEAR AFTER TURNING TAESA AIRLINES FROM A CHARTER BUSINESS INTO A SCHEDULED CARRIER THE AIRLINE'S PRESIDENT ALBERTO ABED HAS CREATED SOMETHING RARE FOR THE LONGSUFFERING MEXICAN TRAVELER A PRICE WAR TAESA A UNIT OF TRANSPORTES AEREOS EJECUTIVOS SA AND PATTERNED AFTER NOFRILLS SOUTHWEST AIRLINES OF DALLAS IS EXPANDING ITS FLEET AND AGGRESSIVELY PROMOTING ITS SERVICES MEXICO'S LARGEST CARRIERS AEROMEXICO AND MEXICANA ARE FEELING THE COMPETITION LAST MONTH THE GOVERNMENT GAVE AEROMEXICO A UNIT OF AEROVIAS DE MEXICO SA APPROVAL TO INCREASE ITS 11 STAKE IN MEXICANA WHOSE PARENT COMPANY IS CORP MEXICANA DE AVIACION SA TO 55 WHAT SUCH AN ALLIANCE WILL DO TO COMPETITIVE PRICES REMAINS TO BE SEEN MR ABED SAYS THE WHOLE YEAR WILL TEST OUR ENDURANCE FOR THE WAR NOT ONLY MUST TINY TAESA FIGHT THE AEROMEXICOMEXICANA ALLIANCE WHICH HAS 80 OF THE DOMESTIC MARKET BUT IT ALSO FACES FOREIGN CARRIERS THAT ARE FILLING MEXICAN SKIES MEXICO IS A HUGE MARKET SAYS ROBERT BOOTH AN AIRLINE CONSULTANT SPECIALIZING IN LATIN AMERICA THE BIGGEST AIRLINES IN THE WORLD NOW COMPETE IN THIS MARKET THAT HAS PEOPLE SUCH AS IRIS BUENDIA CHEERING A MEXICO CITY TRAVEL AGENT FOR 20 YEARS MRS BUENDIA SAYS SHE'S NEVER SEEN SUCH COMPETITION IN ONCEPROTECTIONIST MEXICO THE ONE THAT REALLY STARTED CAUSING ALL THE CHANGES IS TAESA SAYS THE TRAVEL AGENT THIS LITTLE TAESA EVERY WEEK HAS A NEW ROUTE AEROMEXICO AND MEXICANA FOR CONSUMERS TAESA OFFERS DISCOUNTS OF AS MUCH AS 30 ON ITS MOST COMPETITIVE ROUTES IT FLIES TO ABOUT 26 MEXICAN CITIES AND TO LAREDO TEXAS CHICAGO AND VAIL COLO AEROMEXICO AND MEXICANA WERE AMONG THE FIRST COMPANIES SOLD BY THE GOVERNMENT DURING ITS CLEARANCE SALE OF MORE THAN 1000 COMPANIES BEGINNING FIVE YEARS AGO TAESA WAS THEN A CHARTER SERVICE PILOTED BY MR ABED WHO AS A 15YEAROLD WASHED PLANES TO PAY FOR HIS PILOT TRAINING EVENTUALLY MR ABED THE SON OF LEBANESE IMMIGRANTS BECAME A PILOT FOR THE WELLCONNECTED ONE OF THEM WAS CARLOS HANK GONZALEZ MEXICO'S AGRICULTURE MINISTER BY 1988 MR ABED WAS IN BUSINESS WITH CARLOS HANK RHON THE SON OF MR HANK GONZALEZ NOW MR HANK RHON TAESA'S CHAIRMAN OWNS 51 OF THE BUSINESS AND MR ABED 49 LAST YEAR THE AIRLINE GREW FIVEFOLD THANKS TO AN EXPANDED FLEET OF ITS 83 PLANES 55 ARE SMALL WITH AN AVERAGE CAPACITY OF FOUR PASSENGERS BUT ITS BOEING 757S AND OTHER LARGE PLANES CAPTURED 10 OF THE DOMESTIC MARKET AFTER ONLY NINE MONTHS OF OPERATION SALES FOR 1992 ARE EXPECTED TO HIT 200 MILLION UP FROM 65 MILLION IN 1991 WHETHER TAESA WILL POST A PROFIT IS UNCLEAR MR ABED SAYS AND THIS YEAR TAESA SAYS GROWTH WILL BE TRIMMED TO 10 TO 15 MR ABED WHO MAKES AN EFFORT TO RIDE IN THE COCKPIT OF A TAESA AIRLINER AT LEAST ONCE A WEEK SAYS I LOVE TO FLY AND KEEP CURRENT ON THE AIRCRAFT AND BE VERY CLOSE TO THE PILOTS DESPITE SUCH ATTENTION TAESA HAS HAD ITS SHARE OF SAFETY PROBLEMS LAST DECEMBER IN AN AVIATION SAFETY REPORT THE US GENERAL ACCOUNTING OFFICE DISCLOSED THAT CANADA SUSPENDED TAESA'S OPERATIONS THERE LAST APRIL BECAUSE OF SAFETY PROBLEMS AMONG THEM WERE FAILURE TO CARRY ADEQUATE SUPPLIES OF PORTABLE OXYGEN FOR FLIGHT ATTENDANTS AND EMERGENCY SAFETYEQUIPMENT MANUALS THE GAO SAID FROM FEBRUARY THROUGH APRIL 1992 TAESA EXPERIENCED FOUR SAFETY PROBLEMS IN THE US SAYS THE GAO IN THE MOST SERIOUS INCIDENT CITED BY THE GAO A TAESA PLANE FAILED TO FOLLOW AIRTRAFFIC CONTROL INSTRUCTIONS AND DIDN'T MAINTAIN SUFFICIENT SEPARATION FROM OTHER PLANES MR ABED CONTENDS THE CANADIAN SUSPENSION RESULTED FROM COMPLAINTS BY CANADIAN PILOTS ANGRY AT COMPETING MEXICAN CARRIERS AS FOR TAESA'S US PROBLEMS ALL HAVE BEEN RECTIFIED HE SAYS AIR TRAFFIC IN MEXICO GREW 12 LAST YEAR AND MORE THAN TWO DOZEN FOREIGN CARRIERS NOW HAVE ROUTES TO MEXICO INCLUDING THE TWO LATEST ARRIVALS MALAYSIAN AIRLINES AND BRITISH AIRWAYS PLC THE BIGGEST FOREIGN COMPETITORS ARE UAL CORP'S UNITED AIRLINES UNIT AND CONTINENTAL AIRLINES UNITED HAS INCREASED ITS FLIGHTS SHARPLY OVER THE LAST TWO YEARS AND NOW HAS ABOUT 100 FLIGHTS WEEKLY TO MEXICO BUT CONTINENTAL REMAINS THE LARGEST FOREIGN CARRIER IN MEXICO THAT'S WHY AEROMEXICO RECENTLY TRIED TO BUY A STAKE IN CONTINENTAL WHOSE PARENT COMPANY CONTINENTAL AIRLINES HOLDINGS INC IS IN CHAPTER 11 BANKRUPTCY PROCEEDINGS AS FOR AEROMEXICO'S NEW ALLIANCE WITH MEXICANA AEROMEXICO INSISTS IT ISN'T A MERGER AND THAT NO ROUTES WILL BE CUT BACK SUCH STATEMENTS MAY PLEASE TRAVELERS BUT DISMAY ANALYSTS BECAUSE THE TWO COMPANIES ARE DRENCHED IN RED INK MEXICANA'S LOSSES TOTALED 70 MILLION FOR THE FIRST THREE QUARTERS LAST YEAR AEROMEXICO POSTED A 53 MILLION LOSS FOR THE SAME PERIOD EVEN WITH SUCH LOSSES THE NEW ALLIANCE HAS 115 PLANES MAKING IT THE LARGEST AVIATION CONCERN SOUTH OF THE RIO GRANDE THUS NOT EVERYONE THINKS TAESA CAN SURVIVE THE COMPETITIVE BATTLE IT HAS LAUNCHED EVEN THOUGH I QUESTION WHETHER ALL THREE CARRIERS CAN SURVIVE IN THEIR PRESENT FORM SAYS MR BOOTH THE AIRLINE CONSULTANT IT DOESN'T FOLLOW THAT MEXICANA WILL GO OUT OF BUSINESS SEE RELATED LETTER LETTERS TO THE EDITOR THEY STRAIGHTENED UP AND ARE FLYING RIGHT WSJ APRIL 1 1993 9303020073 9304020147 930312 A MODEL FOR DESTROYING A CITY BY WILLIAM TUCKER NEXT WEEK MARKS THE 50TH ANNIVERSARY OF THE PASSAGE OF THE EMERGENCY WARTIME RESIDENTIAL RENT CONTROL ACT DESIGNED TO PREVENT TRANSIENT WELLPAID WARTIME WORKERS FROM OUTBIDDING LOCAL RESIDENTS FOR APARTMENTS IN INDUSTRIAL CITIES THE LAW WAS EVENTUALLY EXTENDED TO NEW YORK CITY WHICH HAD FEW WARTIME INDUSTRIES AND REASONABLY HIGH VACANCY RATES AFTER THE WAR RENT CONTROLS WERE ABANDONED EVERYWHERE EXCEPT NEW YORK WHERE THEY HAVE BEEN EXTENDED BY STATE LAW EVER SINCE DURING THE INFLATIONARY 1970S A SECOND WAVE OF RENT CONTROL ORDINANCES CAPTURED BOSTON CAMBRIDGE AND BROOKLINE MASS NEWARK MUCH OF SUBURBAN LONG ISLAND AND NEW JERSEY WASHINGTON AND MORE THAN HALF THE POPULATION OF CALIFORNIA TODAY MORE THAN 200 CITIES CONTAINING ABOUT A FIFTH OF THE RENTAL UNITS IN THE COUNTRY ARE UNDER RENT CONTROL THE RESULTS HAVE BEEN DISASTROUS HARDLY A MAN IS NOW ALIVE WHO REMEMBERS WHAT NEW YORK CITY WAS LIKE BEFORE RENT CONTROL WHO CAN RECALL THE TRADITIONAL MOVING DAYS OF APRIL 1 AND OCT 1 WHEN OLD LEASES EXPIRED AND NEW YORKERS WENT HOPSKIPPING ACROSS THE CITY IN PURSUIT OF BETTER APARTMENTS WHO REMEMBERS THE FALL RENTING SEASON WHEN LANDLORDS SPENT THE MONTH OF AUGUST REDECORATING IN ORDER TO ATTRACT PROSPECTIVE TENANTS RETURNING FROM SUMMER VACATION HOUSING WAS SO CHEAP AND PLENTIFUL THAT PEOPLE ROUTINELY PUT THEIR FURNITURE IN SUMMER STORAGE AND RENTED A NEW APARTMENT WHEN THEY RETURNED IN THE FALL NEW YORK WAS OFTEN CALLED THE CITY OF NOMADS TODAY MOST NEW YORKERS HAVE BECOME ACCUSTOMED TO THE IDEA THAT FINDING AN APARTMENT REQUIRES EASTERN EUROPEANSTYLE GUILE AND DUPLICITY A FEW YEARS AGO NEW YORK MAGAZINE RECOMMENDED JOINING A CHURCH OR SYNAGOGUE AS A GOOD WAY OF MEETING PEOPLE WHO MIGHT PROVIDE LEADS ON A NEW APARTMENT AFTER 50 YEARS OF RENT CONTROL NEW YORK WHICH ONCE HAD ARGUABLY THE MOST BEAUTIFUL HOUSING STOCK IN THE WORLD NOW HAS THE MOST DILAPIDATED HOUSING IN AMERICA BEAUTIFUL BROWNSTONES FROM THE TURN OF THE CENTURY NOW STAND SHUTTERED WITH WINDOW DECALS THAT FEATURE DRAWINGS OF CURTAINS AND FLOWERPOTS DESIGNED TO MAKE IT APPEAR THAT SOMEONE IS LIVING IN THEM OVER 70 OF CENTRAL HARLEM HAS BEEN TAKEN FOR BACK TAXES THE MIDDLECLASS BUREAUCRACY THAT MANAGES THIS CONFISCATED HOUSING NOW SWALLOWS MORE MONEY THAN THE NEW YORK PUBLIC LIBRARY MEANWHILE A WHOLE GENERATION OF STRUGGLING BLUECOLLAR LANDLORDS HAS BEEN WIPED OUT ALL THIS HAS DONE WONDERS FOR THE CITY'S PERPETUAL FISCAL CRISIS ALTHOUGH FEW REALIZE IT NEW YORK CITY BORROWS MORE MONEY THAN ANY ENTITY EXCEPT THE FEDERAL GOVERNMENT DESPITE ITS MASSIVE DEBT NEW YORK REMAINS A MUSEUM OF DECAYING INFRASTRUCTURE WHERE DOES THE MONEY GO INTO HOUSING CONSTRUCTION OVER THE PAST FIVE YEARS THE CITY GOVERNMENT HAS SPENT 51 BILLION REHABILITATING HOUSING CONFISCATED FROM PRIVATE LANDLORDS STILL NEW YORKERS ACCEPT ALL THIS SHEEPISHLY GOING TO THE SHEARING EVERY YEAR FOR TAXES THAT ARE 170 OF THE NATIONAL AVERAGE WITH BARELY A WHIMPER AT LEAST THE GOVERNMENT IS PROTECTING THEM FROM THEIR LANDLORDS WHAT HAS HAPPENED IS FAIRLY PREDICTABLE FROM ECONOMIC THEORY WHICH FORECASTS SUPPLY SHORTAGES DISINVESTMENT AND DETERIORATION OF THE PRODUCT WHEN PRICE CONTROLS GO INTO EFFECT WHAT HAS BEEN LESS EXPLORED IS THE NOMENKLATURA PHENOMENON THE EMERGENCE OF AN ELITE CAPABLE OF TURNING THE REGULATIONS TO ITS ADVANTAGE ALTHOUGH RENT CONTROL IS ALWAYS ADVERTISED AS HELPING THE POOR THE RICH AND WELLCONNECTED HAVE BEEN THE CLEAR WINNERS IN NEW YORK RENTS IN HARLEM AND THE OUTER BOROUGHS ARE AT MARKET LEVELS WHILE ALL THE GREAT DEALS ARE ON THE UPPER EAST SIDE THE UPPER WEST SIDE AND GREENWICH VILLAGE HOME OF THE CULTURAL AND FINANCIAL ELITE SUCH LUMINARIES AS DEPUTY MAYOR BARBARA FIFE CITY COUNCIL PRESIDENT RUTH MESSINGER FORMER MAYOR ED KOCH JAMES LEVINE MUSIC DIRECTOR OF THE METROPOLITAN OPERA ALISTAIR COOKE AND BALLERINA SUZANNE FARRELL HAVE ALL SPENT YEARS BENEFITING FROM RENT CONTROL THE SAME PATTERN IS BEGINNING TO EMERGE IN OTHER CITIES THAT ADOPTED RENT CONTROL DURING THE SECOND WAVE OF THE 1970S IN RECENT MONTHS INDEPENDENT STUDIES IN CAMBRIDGE MASS AND BERKELEY CALIF HAVE FOUND THAT THE MAJOR BENEFITS OF RENT CONTROL HAVE GONE TO UPPERINCOME PROFESSIONALS WHO USE THEIR MASTERY OF THE BUREAUCRACY AND THEIR SUPERIOR NETWORKS OF FRIENDS AND CONNECTIONS TO EXPLOIT THE THE SYSTEM IN CAMBRIDGE ROLF GOETZE A HIGHLY RESPECTED HOUSING CONSULTANT COMPILED STATISTICS ON RESIDENTS' AGE AND OCCUPATION FROM THE CITY'S 71000PERSON VOTER REGISTRATION RECORDS HE THEN COMPARED THE CHARACTERISTICS OF TENANTS IN RENTCONTROLLED HOUSING WITH THOSE OF TENANTS AND HOMEOWNERS IN THE UNCONTROLLED SECTOR DESPITE THE TENDENCY OF HIGHINCOME PEOPLE TO OWN THEIR OWN HOMES MR GOETZE FOUND RENTCONTROLLED APARTMENTS TO BE MORE DENSELY POPULATED WITH PROFESSIONAL PEOPLE IN THEIR PRIME EARNING YEARS OVER 52 OF RENTCONTROLLED TENANTS ARE AGE 30 TO 49 COMPARED WITH 344 IN THE NONCONTROLLED SECTOR SENIOR CITIZENS MAKE UP ONLY 77 OF THE RENTCONTROLLED SECTOR BUT 166 IN UNREGULATED HOUSING ALSO UNDERREPRESENTED IN RENTCONTROLLED APARTMENTS ARE YOUNG PEOPLE AGE 18 TO 29 WHO ARE 323 OF THE UNREGULATED POPULATION BUT ONLY 245 OF THOSE IN CONTROLLED HOUSING MR GOETZE FOUND THE RENTCONTROLLED TENANTRY TO BE DOMINATED BY PEOPLE CLASSIFIED AS PROFESSIONAL MANAGERIALADMINISTRATIVE TECHNICALSEMIPROFESSIONAL CLERICAL AND SKILLED THE UNREGULATED SECTOR WAS POPULATED BY UNSKILLED AND SEMISKILLED BLUECOLLAR WORKERS STUDENTS RETIRED PEOPLE HOUSEWIVES AND THE UNEMPLOYED THE LARGEST CONCENTRATION OF PEOPLE IN RENTCONTROLLED APARTMENTS SEEMS TO BE WHITECOLLAR PROFESSIONALS IN THEIR 30S AND 40S SAYS MR GOETZE RENTCONTROLLED UNITS ARE NOT CONCENTRATED IN ANY PARTICULAR NEIGHBORHOOD IT'S JUST THAT WHEREVER THEY ARE PROFESSIONAL PEOPLE SEEM TO BE MORE SKILLFUL AT FERRETING THEM OUT TYPICAL IS KENNETH REEVES A 1970S HARVARD GRADUATE AND NOW MAYOR OF CAMBRIDGE MR REEVES STILL LIVES IN THE RENTCONTROLLED APARTMENT HE FIRST RENTED IN 1976 IN AN APPARENT GESTURE OF POPULISM HE EVEN ADVERTISES HIS RENTCONTROLLED STATUS IN HIS CAMPAIGN LITERATURE IN BERKELEY MICHAEL ST JOHN A PHD IN ECONOMICS WHO HAS CONSULTED FOR LANDLORDS FOR MANY YEARS IS JUST COMPLETING A STUDY FOR THE PACIFIC LEGAL FOUNDATION THAT REACHES ALMOST IDENTICAL CONCLUSIONS WE'VE COMPARED THE POPULATION OF BERKELEY IN 1980 JUST AFTER RENT CONTROL WAS INSTITUTED 1979 WITH THE POPULATION OF BERKELEY TODAY SAYS MR ST JOHN IT'S ALREADY OBVIOUS THAT THERE HAS BEEN AN ENORMOUS SHIFT TOWARD THE PROFESSIONAL AND WHITECOLLAR CLASSES WELFARE MOTHERS FORM A MUCH SMALLER PORTION OF THE POPULATION TODAY AS DO SEVERAL OTHER CATEGORIES OF OLDER AND POORER PEOPLE BERKELEY PROBABLY WOULD HAVE GENTRIFIED ANYWAY THE SAME THING HAS HAPPENED IN NEIGHBORING TOWNS BUT RENT CONTROL SEEMS TO HAVE ACCELERATED THE PROCESS IRONICALLY EVEN THOUGH RENT CONTROL WAS ADOPTED IN BOTH BERKELEY AND CAMBRIDGE WITH THE HELP OF VAST STUDENTVOTER POPULATIONS TAKING REVENGE ON THEIR TOWNIE LANDLORDS TODAY'S COLLEGE STUDENTS DO NOT SEEM TO BE GETTING ANY OF THE BENEFITS RENT CONTROL'S TOLL ON THE HOUSING STOCK HAS BEEN DEVASTATING THE INEQUITIES ENORMOUS BUT REMEMBER IT'S ONLY TEMPORARY AS SOON AS BERKELEY AND CAMBRIDGE'S TEMPORARY HOUSING SHORTAGES ARE OVER AS SOON AS WORLD WAR II WINDS DOWN IN NEW YORK THINGS WILL BE GETTING BACK TO NORMAL MR TUCKER A REPORTER AT THE BOND BUYER IS THE AUTHOR OF THE EXCLUDED AMERICANS HOMELESSNESS AND HOUSING POLICIES REGNERY GATEWAY 1990 SEE RELATED LETTER LETTERS TO THE EDITOR A SIMPLE SOLUTION COMPLICATED BY ERROR WSJ APRIL 1 1993 9303120018 9304010184 930401 CINCINNATI MICROWAVE'S STAKE CINCINNATI CINCINNATI MICROWAVE INC SAID IT PLANS TO SELL SOME OR ALL ITS 165 STAKE IN BI INC A BOULDER COLO A CONCERN THAT PROVIDES HOME INCARCERATION FOR CONVICTS TO RAISE CAPITAL THE MAKER OF ELECTRONIC PRODUCTS SAID IT DOESN'T MEET CAPITAL REQUIREMENTS FOR SOME OF ITS CORE BUSINESSES ITS 12 MILLION SHARES IN BI BASED ON YESTERDAY'S CLOSING PRICE OF 7875 ARE VALUED AT 93 MILLION 9304010183 930401 WORLD MARKETS TOKYO SHARES SLUMP ON BROAD PROFITTAKING AT FISCAL YEAR END LONDON STOCKS ADVANCE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARE PRICES ENDED THE JAPANESE FISCAL YEAR ON A SOUR NOTE WEDNESDAY SLUMPING ALMOST 2 ON WIDESPREAD PROFITTAKING BUT LONDON STOCKS ROSE ON A COMBINATION OF FAVORABLE FACTORS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 8522 POINTS TUESDAY PLUNGED 37171 TO 1859145 OR 39 BELOW ITS CLOSE OF 1934595 ON MARCH 31 1992 STILL THE INDEX DID REBOUND IN THE PAST FISCAL YEAR FROM A LOW OF 1430941 REACHED ON AUG 18 AS JAPAN'S ECONOMIC SLUMP AND INVESTORS' PESSIMISM DEEPENED ON THURSDAY THE NIKKEI INDEX ROSE 8760 POINTS TO CLOSE THE MORNING SESSION AT 1867905 FIRST SECTION VOLUME WEDNESDAY WAS ESTIMATED AT 700 MILLION SHARES UP FROM 6193 MILLION SHARES A DAY EARLIER LOSING ISSUES TROUNCED GAINING ISSUES 749314 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH GAVE UP 8522 POINTS TUESDAY SKIDDED 2067 OR 14 TO 143187 THE TOPIX WHILE ENDING BELOW ITS HIGH FOR THE FISCAL YEAR REACHED TWO DAYS EARLIER FINISHED 094 ABOVE ITS CLOSE OF 141852 AT THE END OF THE PREVIOUS YEAR PROFITTAKING WAS TRIGGERED WEDNESDAY BY A RESURGENT YEN IN FOREIGNEXCHANGE DEALINGS AGAINST THE DOLLAR AND BY HINTS THAT COMING FISCALSTIMULUS MEASURES BY THE JAPANESE GOVERNMENT WON'T MEET MARKET EXPECTATIONS THE BULK OF SELLING CAME IN THE AFTERNOON SESSION AFTER A POLICY MAKER IN THE COUNTRY'S RULING POLITICAL PARTY INDICATED THE GOVERNMENT'S SPENDING INJECTION TO INVIGORATE THE ECONOMY WON'T BE AS LARGE AS PREVIOUSLY SUGGESTED BUT PARTICIPANTS SAID THE UPDRAFT THAT HAS LIFTED THE NIKKEI 14 IN THE PAST 3 1/2 WEEKS ISN'T DEAD THOUGH IT MAY GIVE WAY TO FURTHER CONSOLIDATION IN THE DAYS AHEAD IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 177 POINTS TO 28787 THE FT 30STOCK INDEX ADDED 49 POINTS TO 22256 VOLUME WAS 8216 MILLION SHARES COMPARED WITH 7339 MILLION SHARES A DAY EARLIER LONDON'S GAINS WERE LED BY A RALLY IN THE PHARMACEUTICAL SECTOR A FAVORABLE OUTCOME IN THE BRITISH GOVERNMENT BOND AUCTION AND SELECTIVE BUYING OF BLUE CHIPS ON THE FINAL DAY OF THE QUARTER TO DRESS UP PORTFOLIOS THE DRUG STOCKS' SHARP GAINS CAME AFTER THAT SECTOR SURGED IN THE US ON COMMENTS BY A HEALTHCARE ADVISER TO PRESIDENT BILL CLINTON THAT IT WAS DOUBTFUL THE ADMINISTRATION WOULD USE PRICE CONTROLS AS A WAY OF HOLDING DOWN COSTS LATER IN THE LONDON SESSION A DOWNTURN IN THE STOCKINDEX FUTURES MARKET AND VARIOUS CORPORATE NEWS LED STOCK PRICES LOWER TO FINISH OFF THE DAY'S HIGHS IN FRANKFURT SHARE PRICES CLOSED NARROWLY MIXED IN CALM NARROWRANGE TRADING THE DAX 30STOCK INDEX EASED 086 POINT TO 168421 AS 14 OF THE ISSUES ADVANCED AND 14 RETREATED TRADERS WERE UNCERTAIN ABOUT GERMANY'S ECONOMIC FUNDAMENTALS PARIS STOCKS' SIXDAY WINNING STREAK ENDED AS PRICES DECLINED WHILE INVESTORS THOUGH RELIEVED ABOUT FRANCE'S NEW GOVERNMENT AND CABINET APPOINTMENTS FOCUSED ON EXPIRING INDEX FUTURES AND OPTIONS FOR MARCH MILAN STOCKS MOSTLY FELL AS CONCERNS ABOUT THE ITALIAN GOVERNMENT'S FUTURE PERSISTED AMID THE WIDENING CORRUPTION SCANDAL BRUSSELS SHARES ROSE BROADLY ON A BELGIAN INTERESTRATE CUT AND AN AGREEMENT ON GOVERNMENT BUDGET CUTS SYDNEY STOCKS SLIPPED ON A MONTHEND DECLINE IN STOCKINDEX FUTURES AND TOKYO'S WEAKNESS HONG KONG PRICES FELL ON PROFITTAKING SEOUL SHARES ROSE FOR THE SECOND DAY IN A ROW WITH THE SHARPEST GAINS LOGGED BY SMALL COMPANIES BOOSTED BY RECENT SOUTH KOREAN GOVERNMENT MEASURES TO ALLOW THEM TO ISSUE CORPORATE BONDS AND RIGHTS ISSUES AT WILL AMONG CORPORATE DEVELOPMENTS IN LONDON ROTHMANS INTERNATIONAL JUMPED 38 PENCE OR 59 TO 678 PENCE 1013 THE TOBACCO COMPANY UNVEILED TERMS OF THE PLANNED MERGER OF OPERATIONS IN MALAYSIA AND SINGAPORE A NEW REGIONAL HOLDING COMPANY ROTHMANS OF PALL MALL LTD WILL ISSUE 32 NEW SHARES FOR EVERY ROTHMANS OF PALL MALL MALAYSIA BERHAD SHARE AND 2 NEW SHARES FOR EVERY ROTHMANS INDUSTRIES LTD SINGAPORE SHARE THE NEW COMPANY WILL ACQUIRE THE TOBACCO INTERESTS IN NORTHEAST ASIA HELD BY ROTHMANS UNITS BY ISSUING 146 MILLION NEW SHARES EQUAL TO 1 OF ITS ISSUED SHARE CAPITAL AS PART OF THE MERGER THE MALAYSIAN AND SINGAPORE OPERATIONS ARE TO PAY A SPECIAL INTERIM DIVIDEND FOR THE SIX MONTHS ENDING SEPT 30 OF 2 RINGGITS 77 US CENTS A MALAYSIAN SHARE AND 145 SINGAPORE DOLLARS 88 US CENTS A SINGAPORE SHARE QUEENS MOAT HOUSES LAST TRADED AT 475 UP 15 BEFORE BEING SUSPENDED AT THE HOTEL AND CATERING COMPANY'S REQUEST PENDING CLARIFICATION OF ITS FINANCIAL POSITION THE COMPANY ALSO DEFERRED PAYMENT DUE YESTERDAY ON ITS 7 1/2 CONVERTIBLE CUMULATIVE REDEEMABLE PREFERENCE SHARES IN ZURICH NESTLE ROSE 5 SWISS FRANCS TO 1190 FRANCS 79647 THE FOOD COMPANY AGREED TO SELL ITS STOUFFER HOTEL HOLDINGS INC UNIT TO A COMPANY OWNED BY THE FAMILY OF CHENG YUTUNG OF HONG KONG WHO IS CHAIRMAN OF NEW WORLD DEVELOPMENT A PROPERTY DEVELOPER WITH LARGE HOLDINGS IN HOTELS TERMS WEREN'T DISCLOSED THE OHIOBASED STOUFFER CHAIN OWNS OR MANAGES 40 HOTELS IN THE US MEXICO AND THE CARIBBEAN UNDER THE STOUFFER AND PRESIDENTE NAMES 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 9304010182 930401 CANADIAN BUSINESS GROUP URGES TEST FOR GRADUATES OTTAWA CANADIAN BUSINESS LEADERS PROPOSED THAT THE PRIVATE SECTOR DEVELOP A BASIC EMPLOYABILITY SKILLS TEST TO HELP EVALUATE JOB CANDIDATES THE TEST WOULD ASSESS THE LITERACY NUMERACY AND PROBLEMSOLVING SKILLS OF HIGH SCHOOL GRADUATES THE BUSINESS COUNCIL ON NATIONAL ISSUES WHICH REPRESENTS THE CHIEF EXECUTIVES OF 150 MAJOR CANADIAN COMPANIES SAID IT INTENDS TO PURSUE THE SKILLS TEST IDEA WITH OTHER BUSINESS GROUPS THE GOVERNMENT AND SCHOOLS EMPLOYERS COULD DETERMINE HOW MUCH WEIGHT THE TEST RESULTS WOULD CARRY IN THEIR HIRING THE COUNCIL SAID SUCH A TEST WOULD PROVIDE EDUCATORS WITH VALUABLE FEEDBACK ON THE SKILLS AND APTITUDES THAT EMPLOYERS WANT FROM ENTRYLEVEL EMPLOYEES THE COUNCIL SAID THE COUNCIL SAID CANADA'S EDUCATION SYSTEM NEEDS TO BE SUBSTANTIALLY REFORMED SHORTCOMINGS INCLUDE HIGH DROPOUT RATES A SHORT SCHOOL YEAR LACK OF WELLDEFINED EDUCATIONAL STANDARDS WEAK SCIENCE AND MATHEMATICS CURRICULA POOR STUDENT PERFORMANCE ON INTERNATIONAL TESTS AND DECLINING POSTSECONDARY SCHOOL ENROLLMENT IN SCIENCE TECHNOLOGY AND ENGINEERING THE COUNCIL SAID 9304010181 930401 COMPUSA SALES CLIMB 68 DALLAS COMPUSA INC SAID SALES INCREASED 68 FOR ITS THIRD QUARTER ENDED SATURDAY TO 365 MILLION FROM 217 MILLION A YEAR EARLIER THE COMPANY WHICH OPERATES 43 COMPUTER SUPERSTORES SAID SALES AT STORES OPEN FOR AT LEAST A YEAR ROSE NEARLY 20 IN THE FIRST NINE MONTHS OF FISCAL 1993 SALES ROSE 63 TO 9529 MILLION FROM 5837 MILLION SAMESTORE SALES WERE UP 19 9304010180 930401 BANC ONE ACQUISITION COLUMBUS OHIO BANC ONE CORP SAID IT COMPLETED ITS ACQUISITION OF VALLEY NATIONAL CORP PHOENIX IN A STOCK TRANSACTION VALUED AT ABOUT 15 BILLION BANC ONE NOW HAS ASSETS OF ABOUT 70 BILLION INCLUDING THE 114 BILLION OF VALLEY NATIONAL WHICH WILL BE CALLED BANC ONE ARIZONA CORP THE BANK HOLDING COMPANY WHICH EXCHANGED 12 OF ITS SHARES FOR EACH VALLEY NATIONAL SHARE SAID THE TRANSACTION WON'T DILUTE ITS PERSHARE EARNINGS 9304010179 930401 PHILIP MORRIS UNIT'S PURCHASE NEW YORK JACOBS SUCHARD A UNIT OF PHILIP MORRIS CO'S KRAFT GENERAL FOODS DIVISION SAID IT ACQUIRED OLZA SA A POLISH WAFER AND CONFECTIONERY COMPANY TERMS WEREN'T DISCLOSED JACOBS SUCHARD SAID IT HAS ACQUIRED 80 OF THE COMPANY'S STOCK EMPLOYEES WILL HAVE THE OPTION TO PURCHASE THE REMAINDER IN 1992 OLZA HAD ABOUT 24 MILLION IN SALES JACOBS SUCHARD A SWISSBASED COFFEE AND CHOCOLATE CONCERN REPORTED 46 BILLION IN REVENUE FOR 1992 9304010178 930401 INTERNATIONAL DEUTSCHE BANK REPORTS 30 RISE IN 1992 EARNINGS BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GERMANY DEUTSCHE BANK ANNOUNCED AN UNEXPECTEDLY STRONG 30 INCREASE IN NET INCOME FOR 1992 BUT WARNED THAT 1993 IS LIKELY TO BE DIFFICULT BECAUSE OF GERMANY'S ECONOMIC SLOWDOWN GERMANY IS IN RECESSION HILMAR KOPPER CHIEF EXECUTIVE OFFICER TOLD A NEWS CONFERENCE THE BANK ITSELF IS FORECASTING A 15 CONTRACTION OF THE GERMAN ECONOMY THIS YEAR DEUTSCHE BANK GERMANY'S LARGEST BANK ALREADY HAS TAKEN PRECAUTIONS AGAINST THE LIKELIHOOD OF BAD LOANS BY SETTING ASIDE SUBSTANTIAL PROVISIONS FOR SUCH LOSSES MR KOPPER SAID LOANLOSS PROVISIONS IN 1993 WILL BE HIGHER THAN THE AMOUNT SET ASIDE BY THE BANK IN 1992 HE SAID ALTHOUGH HE DECLINED TO FORECAST A SPECIFIC NUMBER A DOUBLEDIGIT INCREASE IN OPERATING PROFIT IN THE FIRST TWO MONTHS OF 1993 SUGGESTS THAT DEUTSCHE BANK WILL NONETHELESS BE ABLE TO POST A SATISFACTORY PERFORMANCE FOR THE WHOLE YEAR HE ADDED FOR 1992 NET TOTALED 183 BILLION MARKS 113 BILLION UP FROM 14 BILLION MARKS IN 1991 THE BANK PREVIOUSLY ANNOUNCED THAT IT WILL PAY AN UNCHANGED DIVIDEND OF 15 MARKS A SHARE OPERATING PROFIT INCLUDING PROFIT ON TRADING ON THE BANK'S OWN ACCOUNT ROSE 7 TO 64 BILLION MARKS THE FULLYEAR RESULTS WERE A SHARP REVERSAL FROM 10MONTHS DATA ANNOUNCED LATE LAST YEAR SHOWING OPERATING PROFIT DOWN BY 5 FROM THE YEAREARLIER PERIOD DEUTSCHE BANK'S SHARES REACTED POSITIVELY TO THE NEWS CLOSING 290 HIGHER AT 71350 MARKS MR KOPPER SAID THE FOURTH QUARTER HAD PROVED VERY GOOD AFTER BAD AND VERY BAD PERFORMANCES IN THE SECOND AND THIRD QUARTERS MR KOPPER SAID DEUTSCHE BANK HAS NO PLANS TO SELL ANY OF ITS SHAREHOLDINGS IN GERMAN COMPANIES INCLUDING A 28 STAKE IN DAIMLERBENZ AG WHICH HAS BEEN THE FOCUS OF MARKET SPECULATION RECENTLY DAIMLERBENZ IS OBTAINING A LISTING ON THE NEW YORK STOCK EXCHANGE AND MR KOPPER SAID DEUTSCHE BANK IS ADVISING IT IN THIS CONTEXT HE ADDED THAT DEUTSCHE BANK ITSELF WOULD BE INTERESTED IN DUE COURSE IN OBTAINING A NEW YORK LISTING THOUGH HE SAID THIS WOULD DEPEND ON WHAT REQUIREMENTS US AUTHORITIES IMPOSE IN TERMS OF FINANCIAL REPORTING ON FOREIGN BANKS UNTIL NOW GERMAN BANKS HAVE BEEN PARTICULARLY OPAQUE IN THEIR FINANCIAL REPORTING PARTICULARLY WITH REGARD TO PROVISIONS SET ASIDE AGAINST EVENTUAL LOSSES ON BAD LOANS HOWEVER MR KOPPER SAID DEUTSCHE BANK IS LEADING A MOVE TO BRING GREATER OPENNESS NOTING THAT IT PLANS TO MOVE A STEP CLOSER TO INTERNATIONAL ACCOUNTING PRINCIPLES WHEN IT PUBLISHES SIXMONTH FIGURES LATER THIS YEAR 9304010176 930401 WHO'S NEWS MICROSOFT CORP MICROSOFT CORP REDMOND WASH PETE HIGGINS 35 YEARS OLD HAS BEEN NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT DESKTOP APPLICATIONS AT THIS SOFTWARE MAKER 9304010175 930401 LETTERS TO THE EDITOR THEY STRAIGHTENED UP AND ARE FLYING RIGHT ALBERTO ABED THE PRESIDENT OF MEXICO'S TAESA AIRLINES IS EVADING THE ISSUE OF PAST SAFETY PROBLEMS WHEN HE BLAMES THE SUSPENSION OF TAESA'S CANADIAN OPERATING CERTIFICATE ON CANADIAN PILOTS BEING ANGRY AT COMPETING MEXICAN CARRIERS MEXICO'S UPSTART TAESA AIRLINES IGNITES PRICE WAR MARCH 2 OUR CONCERN WAS SOLELY WITH SAFETY NOT COMPETITION WE WOULD BET ON OUR AIRLINES OVER HIS ANY TIME EARLY LAST YEAR WE BECAME AWARE OF POTENTIAL SAFETY PROBLEMS AT TAESA THROUGH COMPLAINTS FROM CANADIAN TOURISTS AND FOLLOWUP INFORMATION FROM THE MEXICAN AIRLINE PILOTS' ASSOCIATION WE FORWARDED THIS INFORMATION TO THE CANADIAN DEPARTMENT OF TRANSPORT WHICH HAD ALSO RECEIVED OTHER COMPLAINTS AND WHICH MADE INSPECTIONS OF TAESA'S OPERATIONS INTO CANADA THIS RESULTED IN THE AIRLINE'S CANADIAN OPERATING CERTIFICATE BEING SUSPENDED DUE TO MAINTENANCE DEFICIENCIES TAESA APPEALED THIS DECISION AND A CANADIAN TEAM INSPECTED THE AIRLINE'S MAINTENANCE AND OPERATING PRACTICES IN CONJUNCTION WITH MEXICAN AUTHORITIES SEVERAL AREAS OF WEAKNESS WERE FOUND AND CORRECTIVE RECOMMENDATIONS MADE WITH THE ASSURANCE OF THE MEXICAN DIRECTOR GENERAL CIVIL AVIATION THAT TAESA WOULD MEET INTERNATIONAL CIVIL AVIATION ORGANIZATION STANDARDS THE AIRLINE'S OPERATING CERTIFICATE WAS REINSTATED SUBJECT TO CERTAIN CONDITIONS ONE OF THESE PROVISOS WAS THAT A FURTHER INSPECTION WOULD BE CARRIED OUT BY THE CANADIAN AUTHORITIES IN THE FALL PRIOR TO APPROVAL OF TAESA'S WINTER CHARTER SERVICES IN CANADA THIS FURTHER INSPECTION WAS DONE AND TAESA WAS GRANTED A CANADIAN OPERATING CERTIFICATE HAVING MADE SIGNIFICANT ADVANCES IN ITS OPERATIONS CANADIAN PILOTS ARE PLEASED TO SEE THAT SAFETY HAS BEEN ADVANCED 9304010173 930401 FOREIGN EXCHANGE DOLLAR PLUNGES AGAINST BROAD RANGE OF CURRENCIES YEN CATAPULTS TO HIGH BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR PLUNGED AGAINST A BROAD RANGE OF CURRENCIES WEDNESDAY BUT DEALERS DIDN'T HAVE ANY SINGLE REASON FOR THE DECLINES SEVERAL LARGE ORDERS FOR YEN CAUGHT AN ILLIQUID MARKET BY SURPRISE DEALERS SAID CATAPULTING THE JAPANESE CURRENCY TO A HIGH EUROPEAN CURRENCIES MEANWHILE GAINED MAINLY ON TECHNICAL FACTORS DEALERS SAID AS GROWING BEARISHNESS ON THE DOLLAR FUELED SELLING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16060 MARKS DOWN FROM 16173 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11475 YEN OFF FROM 11656 YEN STERLING WAS TRADING AT 15150 UP FROM 14935 THE DOLLAR FELL TO A NEW POSTWORLD WAR II LOW OF 11463 YEN WEDNESDAY THE PREVIOUS RECORD LOW WAS 11510 YEN SET MARCH 23 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 16131 MARKS AND AT 11442 YEN THERE WAS A TREMENDOUS AMOUNT OF YEN BUYING SAID JOHN NELSON DIRECTOR OF FOREIGN EXCHANGE AT BARCLAYS BANK PLC DEALERS SAID THE SHARP MOVE WHICH BEGAN IN ASIAN TRADING CAUGHT MANY PARTICIPANTS BY SURPRISE DURING THE PAST SEVERAL DAYS ACTIVITY IN THE YEN HAS BEEN SUBDUED BY THE APPROACH OF THE END OF JAPAN'S FINANCIAL YEAR WEDNESDAY THE MARKET WAS SOMEWHAT THINNER THAN NORMAL SAID DENNIS PETTIT FOREIGN EXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN AS A RESULT WHEN SEVERAL US INVESTMENT FUNDS AND JAPANESE LIFE INSURERS STEPPED IN WITH ORDERS TO SELL DOLLARS THE US CURRENCY PLUMMETED DEALERS SAID THE MARKET WASN'T DEEP ENOUGH TO ABSORB IT SO THE IMPACT WAS EXAGGERATED SAID MR PETTIT AS THE DOLLAR FELL DEALERS SAID THE CORPORATE DEMAND MANY HAD EXPECTED TO SHORE UP THE CURRENCY DIDN'T MATERIALIZE THE SELLING CARRIED IT THROUGH SUCCESSIVE TECHNICALSUPPORT LEVELS DEALERS SAID YOSHIRO HAYASHI JAPAN'S FINANCE MINISTER SPEAKING AT A NEWS CONFERENCE FOLLOWING THE YEN'S SURGE EXPRESSED HIS CONCERN ABOUT THE SHARPNESS OF THE RISE AND PROMISED APPROPRIATE ACTION TO ENSURE THE YEN'S STABILITY BUT DEALERS SAID HIS COMMENTS DIDN'T IMPRESS THE MARKET MUCH NOTING THAT HE MADE SIMILAR STATEMENTS WHEN THE DOLLAR FIRST BROKE THE 116YEN LEVEL EARLIER IN MARCH DON QUATTRUCCI AN ASSISTANT VICE PRESIDENT AT SHAWMUT BANK CONNECTICUT IN HARTFORD CONN SAID PLAYERS BELIEVE JAPANESE OFFICIALS WANT TO STRENGTHEN THE YEN IN AN EFFORT TO DEFUSE INTERNATIONAL CONCERN ABOUT JAPAN'S TRADE SURPLUS THEY'RE TRYING TO EASE THE DOLLAR DOWN AGAINST THE YEN HE SAID ADDING THEY DON'T WANT A MAD RUSH ON THE DOLLAR FEARS THAT THE BANK OF JAPAN MIGHT INTERVENE TO SLOW THE DOLLAR'S FALL DETERRED SELLERS FROM PUSHING THE DOLLAR TOO FAR WEDNESDAY SO FAR DEALERS SAID THERE HASN'T BEEN ANY SIGN OF CENTRAL BANK ACTIVITY THE MARK MEANWHILE IDLED DURING MUCH OF ASIAN TRADING THEN GAINED GROUND ONCE EUROPEAN AND NORTH AMERICAN TRADING BEGAN ALTHOUGH THERE WASN'T ANY SPECIFIC NEWS TO PUSH THE DOLLAR LOWER AGAINST THE GERMAN CURRENCY DEALERS SAID TECHNICAL SELLING ALONG WITH PERVASIVE SHORTTERM BEARISHNESS OVERWHELMED HOPES FOR A DOLLAR REBOUND FUNDAMENTALLY THE DOLLAR'S A BUY SAID MR QUATTRUCCI ADDINGBUT IT'S TOUGH TO BUY AND HOLD WITH EUROPEAN RATES SO HIGH MEANWHILE ON WEDNESDAY THE BUNDESBANK GERMANY'S CENTRAL BANK UNDERLINED ITS POLICY OF SLOW MONETARY EASING TRIMMING ITS MONEY MARKET RATES ONLY VERY SLIGHTLY RATES ON THREEMONTH MARK DEPOSITS HELD OUTSIDE GERMANY STILL ARE ABOUT 4 3/4 POINTS ABOVE THOSE ON SIMILAR DOLLAR DEPOSITS ALTHOUGH WEDNESDAY'S MONEYMARKET OPERATION HADN'T BEEN EXPECTED TO PRODUCE A MAJOR RATE CUT DEALERS SAID IT WAS DISAPPOINTING TRADERS ALSO DON'T EXPECT THE BUNDESBANK CENTRAL BANK COUNCIL'S BIWEEKLY MEETING THURSDAY TO RESULT IN A CUT IN OFFICIAL INTEREST RATES 9304010172 930401 WHO'S NEWS FIRST USA INC FIRST USA INC DALLAS ROGER T STAUBACH 51 YEARS OLD WAS ELECTED TO THE BOARD OF THIS FINANCIAL SERVICES COMPANY EXPANDING IT TO EIGHT MEMBERS MR STAUBACH FORMERLY A QUARTERBACK FOR THE DALLAS COWBOYS FOOTBALL TEAM IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF STAUBACH CO A DALLAS REAL ESTATE COMPANY 9304010171 930401 INTERNATIONAL ITALIAN COMMISSION STUDYING REPORT ON TIES BETWEEN MAFIA AND POLITICIANS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL ROME ITALY'S ANTIMAFIA PARLIAMENTARY COMMISSION IS EXAMINING A NEW REPORT THAT CONFIRMS LINKS BETWEEN POLITICIANS AND THE SICILIAN MAFIA AND WARNS THAT ORGANIZED CRIME IS SEEKING NEW POLITICAL TIES THE 70PAGE REPORT WRITTEN BY COMMISSION PRESIDENT LUCIANO VIOLANTE MARKS THE FIRST TIME THAT MAFIA LINKS WITH GOVERNMENT OFFICIALS HAVE BEEN CONFIRMED SINCE THE SPECIAL PARLIAMENTARY COMMITTEE WAS FORMED 30 YEARS AGO THE REPORT'S CONCLUSIONS APPEAR TO DASH RECENT HOPES FOLLOWING THE JANUARY ARREST OF TOP MOB BOSS TOTO RIINA THAT THE STATE WAS WINNING THE WAR AGAINST THE MAFIA THE REPORT COMES IN THE WAKE OF NOTICE SERVED LAST WEEKEND TO FORMER PRIME MINISTER GIULIO ANDREOTTI THAT HE IS UNDER INVESTIGATION FOR ALLEGED MAFIA ASSOCIATION ACCORDING TO THE REPORT THE CONTENTS OF WHICH WAS LEAKED TO THE PRESS LEADING SICILIAN CHRISTIAN DEMOCRAT SALVATORE LIMA WASN'T ACTING ALONE IN COLLABORATING WITH THE SICILIAN MAFIA OR COSA NOSTRA MR LIMA WHO WAS MURDERED IN MARCH 1992 FOR REPORTEDLY FAILING TO DELIVER POLITICAL FAVORS TO MAFIA BOSSES WAS A CLOSE ALLY OF MR ANDREOTTI KEY TO THE PALERMO MAGISTRATES' INVESTIGATIONS OF MR ANDREOTTI ARE HIS LINKS WITH MR LIMA THE VIOLANTE REPORT SAYS MR LIMA'S ROLE IN AIDING THE MAFIA WAS MAINLY TO TRANSFER UNCOMFORTABLE OFFICIALS OUT OF SICILY WHO MIGHT LIMIT COSA NOSTRA'S CONTROL OVER THE ISLAND HE WOULD ALSO ADJUST TRIAL SENTENCES BY SEEING THAT SENTENCES OF CONVICTED MAFIOSI WERE EITHER REDUCED OR BOSSES WERE RELEASED BY PERFORMING THESE FAVORS FOR COSA NOSTRA MR LIMA AND OTHER POLITICAL LEADERS WERE ASSURED OF RECEIVING VOTES TO RETAIN POLITICAL CONTROL OVER THE ISLAND IT'S DIFFICULT TO BELIEVE THAT THE RELATIONSHIP BETWEEN COSA NOSTRA AND THE POLITICAL SYSTEM WAS EXHAUSTED BY SALVO LIMA IN HIS ACTIVITY OF GUARANTEEING THE INTERESTS OF MAFIOSI DIRECTLY IN PALERMO AND ROME THE REPORT CONCLUDES IT'S NECESSARY TO IDENTIFY THE OTHER POLITICIANS THE REPORT IMPLICITLY ENDORSES THE INVESTIGATION OF MR ANDREOTTI STATING ASCERTAINING THE EVENTUAL CRIMINAL RESPONSIBILITIES OF ANDREOTTI IS OBLIGATORY CITING TESTIMONY OF MAFIA TURNCOATS THE REPORT DETAILS THE RULES OF COOPERATION SET BY COSA NOSTRA FOR POLITICIANS THE REPORT SAYS THE GOVERNMENT OFFICIAL CAN MAKE SPEECHES AND EVEN PROPOSE LEGISLATION AGAINST THE MAFIA IF IT IS NECESSARY TO HAVE AN ALIBI BUT THE IMPORTANT THING IS THAT THOSE LAWS ARE NOT APPLIED AND THE TRIALS CAN BE ADJUSTED' IT SAYS THE REPORT GOES ON TO LINK MASONIC LODGES WITH THE MAFIA BEGINNING IN 1977 IT WARNS THAT COSA NOSTRA IS NOW LOOKING FOR NEW ALLIANCES IN THE POLITICAL WORLD SICILY REMAINS THE TERRITORY OF COSA NOSTRA THE REPORT CONCLUDES THE MAFIA CONTINUES TO EXERT ITS INFLUENCE OVER PARTS OF THE POLITICAL ECONOMIC AND INSTITUTIONAL SYSTEM THAT IT DEEMS USEFUL IN THIS CONTEXT POLITICALMAFIA TERRORISM CAN REPEAT ITSELF THE REPORT STATES 9304010170 930401 FURON CO CLOSES DIVISION LAGUNA NIGUEL CALIF FURON CO SAID IT IS PERMANENTLY CLOSING ITS FOMAC DIVISION IN TULSA OKLA DISMISSING ABOUT 100 EMPLOYEES IN THE PROCESS FURON A MAKER OF INDUSTRIAL PARTS MADE FROM POLYMER MATERIALS HAD ARRANGED TO SELL THE DIVISION BUT THE PLANS FELL THROUGH THE DIVISION WHICH MOLDED AND BONDED RUBBER HAD ANNUAL SALES OF ABOUT 9 MILLION 9304010169 930401 CANADA'S GDP ROSE IN JANUARY OTTAWA CANADA'S GROSS DOMESTIC PRODUCT ROSE 02 IN JANUARY FROM DECEMBER LED BY A 17 INCREASE IN CONSTRUCTION ACTIVITY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE JANUARY ADVANCE FOLLOWED A DECEMBER GDP RISE OF 04 GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE COUNTRY THE DECEMBERJANUARY GAIN WAS THE LARGEST TWOMONTH GDP INCREASE SINCE MAY 1991 9304010168 930401 WHO'S NEWS CYTOTHERAPEUTICS INC CYTOTHERAPEUTICS INC PROVIDENCE RI SETH RUDNICK WAS NAMED CHAIRMAN AND THOMAS G WIGGANS PRESIDENT OF THIS BIOTECHNOLOGY CONCERN MR RUDNICK 44 YEARS OLD WHO WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL RETAIN THE LATTER TITLE MR WIGGANS 41 CONTINUES AS CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER MR RUDNICK SUCCEEDS GRANT HEIDRICH WHO REMAINS A PARTNER 9304010167 930401 WHO'S NEWS RAYCHEM CORP RAYCHEM CORP MENLO PARK CALIF VICE PRESIDENT AND TREASURER RAYMOND J SIMS 42 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AT THIS MATERIALSCIENCES COMPANY HE SUCCEEDS MICHAEL T EVERETT 43 WHO WAS NAMED GENERAL MANAGER OF THE COMPANY'S ASIAN OPERATIONS 9304010166 930401 WHO'S NEWS XOMA CORP XOMA CORP BERKELEY CALIF JOHN L CASTELLO 56 PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN AT THIS BIOTECH COMPANY HE SUCCEEDS STEVEN C MENDELL 51 WHO RESIGNED TO PURSUE OTHER BIOSCIENCE INTERESTS BUT WILL REMAIN A DIRECTOR 9304010165 930401 INTERNATIONAL JAPANESE FLOAT TRIAL BALLOONS FOR US MEETING BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO FOLLOWING A TIMEHONORED JAPANESE RITUAL BUREAUCRATS ARE BUSILY GATHERING GIFTS FOR PRIME MINISTER KIICHI MIYAZAWA TO TAKE TO WASHINGTON FOR HIS FIRST MEETING WITH PRESIDENT BILL CLINTON LATER THIS MONTH ALMOST DAILY THE JAPANESE PRESS FLOATS AS A TRIAL BALLOON A GESTURE UNDER CONSIDERATION TO EASE ECONOMIC TENSIONS WITH THE US A NEW IMPORTPROMOTION PLAN A NEW TECHNOLOGYSHARING ARRANGEMENT ONE OF THE MORE UNUSUAL POSSIBILITIES REPORTED BY THE NIHON KEIZAI SHIMBUN NEWSPAPER ON ITS FRONT PAGE TUESDAY IS THAT JAPAN'S GOVERNMENT IS THINKING OF EXTENDING EXPORTIMPORT BANK LOANSFUNDS USUALLY RESERVED FOR DEVELOPING COUNTRIES TO US PUBLICWORKS PROJECTS A FOREIGN MINISTRY OFFICIAL CONFIRMS THAT SUCH A PLAN IS UNDER DISCUSSION BUT SAYS NO DECISION HAS BEEN MADE JAPANESE OFFICIALS ARE BRACING FOR A ROCKY MEETING WITH MR CLINTON ON APRIL 16 IN RECENT DAYS MR CLINTON AND HIS AIDES HAVE STEPPED UP THEIR RHETORICAL ATTACKS ON JAPAN FOR ITS HUGE TRADE SURPLUS AND ITS SEEMING UNWILLINGNESS TO CUT IT MR MIYAZAWA'S MAIN RESPONSE WILL BE A HUGE FISCAL STIMULUS PACKAGE WHICH TOKYO SAYS WILL REINVIGORATE JAPAN'S LAGGING ECONOMY AND HELP BOOST IMPORTS IN ADDITION MR MIYAZAWA WILL LIKELY FOLLOW HIS PREDECESSORS' PRACTICE AND TAKE WITH HIM A SUITCASE FULL OF SYMBOLIC OMIYAGE OR SOUVENIRS TO SHOW JAPAN'S GOOD FAITH USUALLY WHEN THE HEAD OF GOVERNMENT VISITS A COUNTRY WE BRAINSTORM FOR NEW INITIATIVES THAT CAN BE BROUGHT TO THE COUNTRY A FOREIGN MINISTRY SPOKESMAN SAID EACH MINISTRY INVOLVED IN US JAPAN RELATIONS IS SCRUTINIZING THE POSSIBILITY OF COOPERATION IN ITS CAPACITY SO YESTERDAY THE NIHON KEIZAI HAD THIS TO REPORT ON ITS FRONT PAGE JAPAN MAY PROPOSE SHARING ITS ADVANCED RESEARCH ON MAGNETICALLY LEVITATED TRAINS A FIELD IN WHICH JAPAN IS CONSIDERED TO BE AHEAD OF THE US THE SAME DAY THE YOMIURI SHIMBUN SAID JAPAN MAY OFFER TO GIVE A BOOST TO CLINTON ADMINISTRATION PLANS TO BUILD AN ADVANCED TELECOMMUNICATIONS NETWORK WHILE SUCH MOVES ARE OFTEN PRESENTED WITH HUGE FANFARE IN JAPAN AND ABROAD THEY RARELY IMPRESS AMERICANS THEY COME UP WITH IDEAS THAT ARE MORE LIKE THROWING BONES THAN ADDRESSING FUNDAMENTAL ISSUES A WESTERN DIPLOMAT SAID JAPAN'S THOROUGH PLANNERS HOWEVER ARE PREPARED EVEN FOR AN UNGRACIOUS RESPONSE IF MR CLINTON EXPRESSES SKEPTICISM ABOUT MR MIYAZAWA'S SINCERITY IN DEALING WITH TRADE JAPAN'S PRIME MINISTER CAN PRESENT HIM WITH AN ENGLISHLANGUAGE PAMPHLET JUST PUBLISHED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MYTHS VS FACTS ANSWERING YOUR QUESTIONS ABOUT JAPAN 9304010164 930401 WHO'S NEWS NORTH LILY MINING CO NORTH LILY MINING CO SAN BRUNO CALIF ANTON HENDRIKSZ 45 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MINING COMPANY CITING PERSONAL REASONS HE WILL REMAIN CHAIRMAN THOMAS L CROM 37YEAROLD EXECUTIVE VICE PRESIDENT HAS BEEN APPOINTED ACTING PRESIDENT 9304010163 930401 ADMINISTRATION LEANS TOWARD IMPROVING TIES WITH VIETNAM WASHINGTON THE CLINTON ADMINISTRATION IS UNDERTAKING AN URGENT AND INTENSIVE REVIEW OF ITS POLICY TOWARD VIETNAM AND DECISIONS ARE LIKELY TO BE MADE THIS MONTH ACCORDING TO SENIOR US OFFICIALS THE ADMINISTRATION APPEARS TO BE LEANING TOWARD IMPROVING TIES WITH VIETNAM ACKNOWLEDGING THAT A POLICY OF MAKING OVERTURES TOWARD THE SOUTHEAST ASIAN NATION DURING THE PAST 18 MONTHS HAS PRODUCED RESULTS IN THE US QUEST FOR INFORMATION ABOUT SERVICEMEN MISSING FROM THE VIETNAM WAR BUT THE ADMINISTRATION HASN'T DECIDED ON WHAT IF ANY ACTIONS TO TAKE INCLUDING WHETHER TO LIFT THE TRADE EMBARGO FULLY OR PARTIALLY ENGAGEMENT PRODUCES MORE PROGRESS SAID WINSTON LORD THE ADMINISTRATION'S PICK TO HEAD THE STATE DEPARTMENT'S ASIA BUREAU MR LORD WHO MADE THE COMMENT DURING HIS CONFIRMATION HEARING YESTERDAY BEFORE THE SENATE FOREIGN RELATIONS COMMITTEE IS EXPECTED TO BE APPROVED FOR THE POST HE ALSO SAID THAT IN ADDITION TO CONCERN ABOUT THE MIA ISSUE THE LOSS OF US BUSINESS OPPORTUNITIES AS A RESULT OF THE EMBARGO HAS BEEN AN IMPORTANT FACTOR IN THE ADMINISTRATION'S POLICY REVIEW A SENIOR ADMINISTRATION OFFICIAL SAID SEPARATELY THAT PRESIDENT CLINTON LIKELY WOULD MAKE A DECISION ON FUTURE RELATIONS WITH VIETNAM BEFORE THE END OF THIS MONTH IN ADDITION MR LORD INDICATED THAT THE ADMINISTRATION AND CHINA ARE DISCUSSING THE ISSUE OF RENEWAL OF CHINA'S MOST FAVORED NATION TRADING STATUS HE SAID THE US HOPED THERE WOULD BE SUFFICIENT PROGRESS IN CHINA'S BEHAVIOR REGARDING HUMAN RIGHTS TRADE AND WEAPONS PROLIFERATION POLICY SO THAT THE US COULD RENEW THE TRADE STATUS WITHOUT IMPOSING CONDITIONS MR LORD PROMISED TO DISCUSS THE MATTER FULLY WITH CONGRESS BEFORE THE JUNE RENEWAL DATE HOPEFULLY WE WILL HAVE MADE SOME PROGRESS BY THEN HE SAID 9304010162 930401 NEW CONSTRUCTION DECLINED BY 6 DURING FEBRUARY BY MILTON G ALLIMADI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A STEEP DOWNTURN IN UTILITIES CONSTRUCTION HELPED CAUSE A 6 DECLINE IN CONTRACTING FOR NEW CONSTRUCTION IN FEBRUARY SAID FW DODGE THE MCGRAWHILL INC FORECASTING UNIT THE DODGE INDEX OF CONSTRUCTION CONTRACTS WHICH USES 1987 AS THE BASE YEAR OF 100 SLIPPED TO A SEASONALLY ADJUSTED 95 DOWN FROM JANUARY'S 101 AND WELL BELOW THE HIGH OF 104 LAST OCTOBER SEVERAL LARGE UTILITY PROJECTS HAD BOOSTED JANUARY'S INDEX BUT SUCH PROJECTS DECLINED STEEPLY IN FEBRUARY HOUSING SLIPPED MODESTLY AND NONRESIDENTIAL BUILDING GAINED SLIGHTLY THE NONBUILDING SECTOR RETURNED TO A VOLUME MORE CONSISTENT WITH ITS PERFORMANCE IN THE SECOND HALF OF 1992 DODGE SAID ACCOUNTING FOR THE IMPACT OF JANUARY'S LARGE PROJECTS THE PICTURE COMING TOGETHER IN FEBRUARY IS SIMILAR TO THIS YEAR'S OUTSET THE CONSTRUCTION INDUSTRY IS HOLDING ITS OWN FOR THE MOMENT SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS FOR FW DODGE HOUSING HAS LOST SOME MOMENTUM FROM THE STRONG VOLUME SHOWN AT THE END OF 1992 BUT THE MODEST GAIN FOR NONRESIDENTIAL BUILDING IS A HOPEFUL SIGN THAT ITS WORST DECLINES HAVE PASSED A SHARP REDUCTION IN UTILITY PROJECTS WAS MOSTLY RESPONSIBLE FOR THE 17 DROP IN FEBRUARY'S NONBUILDING CONSTRUCTION EXCLUDING UTILITIES THE DROP REGISTERED BY THE PUBLIC WORKS SEGMENT IS A MORE MANAGEABLE 5 WELL WITHIN ITS NORMAL VARIATION DODGE SAID DESPITE FEBRUARY'S DECLINE PUBLIC WORKS ACTIVITY WAS STILL RELATIVELY HEALTHY COMPARED WITH 1992 AS A WHOLE MR MURRAY SAID THE PROGRESS OF THE ADMINISTRATION'S STIMULUS PACKAGE THROUGH CONGRESS WILL DETERMINE WHETHER PUBLIC WORKS CAN BREAK AWAY TO A HIGHER LEVEL IN THE MONTHS AHEAD HE ADDED SINGLEFAMILY HOUSING WAS RESPONSIBLE FOR MOST OF FEBRUARY'S 5 DECLINE IN THE VALUE OF RESIDENTIAL CONTRACTS AS THE MULTIFAMILY SIDE OF THE MARKET HELD A STEADY BUT DEPRESSED PACE THE LACKLUSTER PACE IN SINGLEFAMILY HOUSING A KEY ELEMENT IN HOW FAR CONSTRUCTION RECOVERY GOES IS REASON FOR SOME CONCERN AS TO WHEN THE INDUSTRY'S RECOVERY WILL REALLY TAKE HOLD MR MURRAY SAID HOUSING HASN'T YET RESPONDED TO LOWER INTEREST RATES PARTLY BECAUSE OF THE HARSH WINTER WEATHER AND THE GENERAL ECONOMY HE SAID NONRESIDENTIAL BUILDING EDGED UP 2 IN FEBRUARY AIDED BY A STRONG VOLUME OF SCHOOL CONSTRUCTION AND WORK ON A CONVENTION CENTER IN ORLANDO FLA THE INSTITUTIONAL CATEGORIES HAVE SHOWN MODEST IMPROVEMENT THIS YEAR AN INCREASE FOR STORE CONSTRUCTION ALSO HELPED THE NONRESIDENTIAL TOTAL OFFICE AND MANUFACTURING STARTS REMAINED AT DISMAL LEVELS THOUGH DODGE SAID REGIONALLY FOR THE FIRST TWO MONTHS OF 1993 THE SOUTH ATLANTIC STOOD OUT WITH A 15 GAIN COMPARED WITH THE SAME PERIOD A YEAR EARLIER THE NORTHEAST AND SOUTH CENTRAL AREAS RESPECTIVELY SHOWED MODEST IMPROVEMENTS OF 2 AND 4 THE NORTH CENTRAL AND WEST AREAS POSTED DECLINES OF 19 AND 16 RESPECTIVELY TOTAL CONSTRUCTION FOR THE FIRST TWO MONTHS OF THIS YEAR WAS DOWN 4 FROM THE SAME PERIOD LAST YEAR THE TWOMONTH CUMULATIVE TOTALS ARE ON AN UNADJUSTED BASIS 9304010161 930401 WHO'S NEWS BRADLEES INC BRADLEES INC BRAINTREE MASS PATRICIA M POMERLEAU 43 YEARS OLD WAS NAMED A DIRECTOR OF THIS DISCOUNT DEPARTMENT STORE CONCERN EXPANDING IT TO SEVEN MEMBERS MS POMERLEAU IS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF SOUTH SHORE HOSPITAL INC IN SOUTH WEYMOUTH MASS 9304010160 930401 LEISURE & ARTS SITTING IN FOR TONY AT THE OSCARS CLINT MAKES HER DAY BY AMY GAMERMAN LOS ANGELES SO MAYBE YOU DIDN'T RECOGNIZE ME BUT IF YOU SAW CLINT EASTWOOD WIN HIS OSCARS MONDAY NIGHT YOU COULDN'T HAVE MISSED ME I WAS RIGHT BEHIND CLINT'S MOTHER TO THE LEFT OF MORGAN FREEMAN AND THE RIGHT OF GEENA DAVIS IN A SEAT THAT ACTUALLY BELONGED TO ANTHONY HOPKINS WHAT WAS I DOING THERE THE PLASTIC BADGE SLUNG AROUND MY NECK BUT ARTFULLY HIDDEN FROM YOU AND THE OTHER BILLIONPLUS VIEWERS SAID IT ALL SEAT FILLER IT DECLARED I AM FILLING THIS SEAT TEMPORARILY IN ORDER TO AVOID EMPTY SEATS FOR CAMERA PURPOSES ONCE A YEAR A HANDFUL OF UNFAMOUS FOLKS GET A CHANCE TO BRUSH ELBOWS WITH THE BIGGEST NAMES IN HOLLYWOOD BY KEEPING THEIR SEATS WARM THIS YEAR I WAS ONE OF THEM THANKS TO PEOPLE LIKE ME THE 65TH ANNUAL ACADEMY AWARDS WERE PACKED TO THE RAFTERS FOR ALL THREEANDAHALF HOURS EVEN WHEN A CHUNK OF THE LEGITIMATE AUDIENCE WAS OUT SHMOOZING AT THE COMPLIMENTARY BAR OR TOUCHING UP THEIR MASCARA IN THE LADIES' ROOM AND IT WAS HARD WORK JUST ASK JOSEPH DISANTE ABC'S CZAR OF OSCAR SEAT FILLING FOR THE PAST 20 YEARS IT'S SIMPLY A LONG HARD ARDUOUS DAY IN WHICH PEOPLE PUT OUT MONEY ON THEIR OWN GOWN OR TUXEDO AND GIVE UP A WORKING DAY HE SAID IT'S ALSO FRONT ROW CENTER AT THE ACADEMY AWARDS MY DAY AT THE OSCARS BEGAN AT ABC'S HOLLYWOOD STUDIOS AT 1030 ON MONDAY I WAS ALREADY IN MY SEAT FILLER UNIFORM A RENTED OFFTHESHOULDER BLACK EVENING GOWN AND SATIN PUMPS YOU HAVE TO LOOK LIKE YOU BELONG MR DISANTE HAD WARNED WHEN THAT CAMERA PANS AND YOU'RE NEXT TO JACK NICHOLSON YOU HAVE TO LOOK LIKE YOU'RE ONE OF THEM FOR MY FELLOW 120ODD SEAT FILLERS MOST OF THEM ABC STAFFERS OR THEIR RELATIVES THAT MEANT EVERYTHING FROM YELLOW BOWTIES TO RETROFITTED PROM GOWNS THEN THERE WAS NANCY TRICHE LONDON FOR THIS HER EIGHTH ACADEMY AWARDS SHE HAD SHELLED OUT 1000 FOR A RHINESTONEENCRUSTED BLACK GOWN 200 FOR MATCHING EARRINGS AND 65 FOR HER MAKEUP JOB EVEN AT THAT HOUR SHE WAS WEARING HER PUMPS ALTHOUGH SOME REALLY SAVVY FILLERS WERE IN SNEAKERS CLUTCHING OUR OFFICIAL INVITATIONS WE FILED INTO A CAVERNOUS SOUND STAGE FOR OUR BRIEFING WHERE A SIGN STATED THE SEAT FILLER CREDO DON'T EMBARRASS YOURSELF ABC THE ACADEMY AND ESPECIALLY THE TALENT MR DISANTE SURVEYED HIS SEQUINED RANKS THE NAME OF THIS GAME IS TO MOVE FAST HE SAID SOMETIMES YOU WILL FIND YOU HAVE EXACTLY 10 SECONDS TO GET INTO A SEAT MAYBE LESS YOU HAVE TO LEARN TO DO THE GROUCHO MARX WALK THERE'S CAMERAS EVERYWHERE SPOTTERS ON EITHER SIDE OF THE HOUSE WOULD TELL US WHERE TO GO HE CONTINUED AND THEN REELED OFF A STRING OF DOS AND DON'TS WHEN GETTING TO A SEAT IN THE MIDDLE OF A ROW WALK IN FACING THE SEATED CELEBRITIES DON'T PUT YOUR BUTTS IN THEIR FACES HE SAID ONCE SEATED DON'T SPEAK UNLESS YOU'RE SPOKEN TO AND NEVER ASK FOR AUTOGRAPHS DO NOT FOR A NANOSECOND REMOVE YOUR OFFICIAL SEAT FILLER BADGE BUT HIDE IT ONCE YOU'RE SEATED IN A TUXEDO POCKET OR BY SLINGING IT BEHIND YOUR BACK THEN WE WERE GIVEN A BUFFET LUNCH OF PASTA AND SALAD WHICH FOR A PERSON IN EVENING WEAR WAS MUCH LIKE ROLLERBLADING THROUGH A MINEFIELD I ALREADY GOT SOMETHING ON MY DRESS MOANED A WOMAN IN GREENANDBLUE SATIN I THOUGHT I WAS PLAYING IT SAFE WITH A ROLL AND SODA UNTIL SOMEONE TOLD ME NOT TO DRINK TOO MUCH YOU DON'T WANT TO HAVE TO GO TO THE BATHROOM ONCE YOU GET A SEAT THOSE WORDS WERE RINGING IN MY EARS WHEN I WAS SUMMONED TO THE FRONT LINES A FEW HOURS LATER AT THE DOROTHY CHANDLER PAVILION ALTHOUGH SHOWTIME WAS MORE THAN AN HOUR AWAY MR DISANTE HAD TAPPED A FEW FILLERS TO STAND IN FOR PRESENTERS IN THE SHOW'S FIRST SEGMENT MS LONDON GOT JACK PALANCE I DREW GEENA DAVIS I SETTLED INTO HER SECONDROW SEAT SLUNG MY BADGE OVER MY SHOULDER AND TRIED TO LOOK COMFORTABLE STAY ALERT BECAUSE WHEN YOUR PERSON COMES BACK YOU'VE GOT TO GET OUT FAST MR DISANTE SAID HE GAVE ME AN APPROVING NOD YOU LOOK LIKE YOU BELONG BUT I DIDN'T FEEL THAT WAY WHEN THE CELEBRITIES STARTED TRICKLING INSIDE FIRST THE FELLINIS AND MARCELLO MASTROIANNI FOLLOWED BY JANE FONDA AND TED TURNER DENZEL WASHINGTON WAS JOKING WITH MR FREEMAN A FEW FEET AWAY FROM ME SUSAN SARANDON WAS INTRODUCING SOMEONE TO TIM ROBBINS'S GRANDFATHER AND SHARON STONE SEATED JUST BEHIND ME WAS REMINISCING ABOUT HER EXPERIENCES AS A FAILED MISS AMERICA CONTESTANT WHEN I LOOKED OVER AND SAW JACK NICHOLSON STANDING AT THE END OF THE AISLE SUNGLASSES AND ALL I EXPERIENCED A SUDDEN BURST OF EMPATHY FOR THE SEAT FILLER I'D HEARD ABOUT WHO WAS SO OVERCOME THAT SHE THREW UP AFTERWARD LADIES AND GENTLEMEN PLEASE TAKE YOUR SEATS THE ANNOUNCER WAS SAYING AND THEN THREE MINUTES TO AIR TIME THE HOUSE SUDDENLY WENT QUIET KLIEGL LIGHTS TRAINED ON THE AUDIENCE POPPED ON THE THEME MUSIC ROLLED AND JACK PALANCE DRAGGED BILLY CRYSTAL ON STAGE JUST WHEN I WAS STARTING TO ENJOY MYSELF WE CUT TO A COMMERCIAL AND THERE WAS MS DAVIS TOWERING AT THE END OF MY ROW ALTHOUGH I MANAGED TO MAKE MY WAY OUT WITHOUT STEPPING ON THE TOES OF EITHER MICHELLE PFEIFFER OR AL PACINO I NARROWLY AVOIDED TRIPPING OVER JACK NICHOLSON'S SURPRISINGLY SMALL FEET WHICH HE HAD STRETCHED STRAIGHT OUT IN FRONT OF HIM AFTER A SECOND SHORTER STINT IN THE SIXTH ROW I HEADED FOR THE LOUNGE TO COLLECT MYSELF PEOPLE WERE LINED UP SIX DEEP AT THE BAR WHERE MIRANDA RICHARDSON WAS COMMISERATING WITH FELLOW NONWINNER JAYE DAVIDSON GIRDING MYSELF FOR BATTLE WITH A FRESH APPLICATION OF LIPSTICK I REJOINED THE LINE OF SEAT FILLERS UPSTAIRS IN THE FOYER WHEN I REACHED THE HEAD OF THE LINE THE SPOTTER TOLD ME TO GET READY TO RACE TO ALFRE WOODARD'S SEAT AND THEN LOOKED AROUND FOR SOMEONE TO SEND IN FOR ANTHONY HOPKINS WHO WOULD BE PRESENTING THE BEST ACTRESS AWARD I BEGGED HER TO LET ME TAKE HIS SEAT INSTEAD WHY HE WON'T BE SITTING THERE SHE SAID I KNOW BUT HE'S RIGHT BEHIND CLINT EASTWOOD I PLEADED WHEN HIS SEAT OPENED UP I SIDESTEPPED IN SO FAST I DIDN'T EVEN SEE KATHY BATES AND MORGAN FREEMAN AS I PASSED THEM YOU AREN'T ANTHONY HOPKINS MR FREEMAN'S FRIENDLY ASSISTANT WHISPERED NO I JUST LOOK LIKE HIM I SAID AND SETTLED IN TO WATCH NELL CARTER BURST OUT OF ALADDIN'S LAMP IN THE PRODUCTION NUMBER OF FRIEND LIKE ME NOT EVERYONE SHARED MY EXCITEMENT I CAN'T WAIT TO GET HOME AND PUT ON SWEATPANTS ANJELICA HUSTON WAS SAYING RIGHT BEHIND ME AS SHE HIKED UP THE TOP OF HER VELVET DRESS HER HUSBAND THE SCULPTOR ROBERT GRAHAM AMUSED HIMSELF BY TRYING ON ONE OF HER LAVISH CLIPON EARRINGS SIR ANTHONY PRESENTED EMMA THOMPSON WITH HER BEST ACTRESS OSCAR THE COMMERCIAL BREAK CAME AND WENT BUT HE NEVER CAME BACK TO HIS SEAT NOT FOR BEST SCREENPLAY NOT FOR LIZ TAYLOR NOT FOR THE BEST ACTOR AWARD I HAD TO WILL MYSELF NOT TO LOOK INTO THE CAMERA THAT WAS NOW HOVERING INCHES AWAY FROM CLINT'S FACE WHEN AL PACINO'S NAME WAS READ I WAITED TO RISE FOR THE STANDING OVATION UNTIL CLINT DID FIRST JUST TO BE POLITE THEN I WAS STANDING UP FOR CLINT HIMSELF AS HE NETTED HIS BEST DIRECTOR OSCAR MR FREEMAN LEANED FORWARD HEY FRANCES HE SAID TO CLINT'S COMPANION AND UNFORGIVEN COSTAR FRANCES FISHER DON'T YOU THINK SOMEONE SHOULD TELL CLINT HE'S GOT HIS JACKET BUTTONED WRONG DID IT SHOW SHE ASKED ANXIOUSLY SCANNING MY ROW SHE SEEMED REASSURED WHEN I SHOOK MY HEAD CLINT JOGGED BACK TO HIS SEAT JUST IN TIME TO GET UP AGAIN TO ACCEPT HIS BEST PICTURE AWARD AND THEN IT HAPPENED HE THANKED HIS MOTHER THE CAMERA SWUNG IN OUR DIRECTION AND MY FACE BEHIND HERS FLASHED ACROSS A BILLION TV SCREENS YOU LOOKED LIKE A CELEBRITY ONE OF MY FELLOW FILLERS TOLD ME LATER WITHIN 12 HOURS I HEARD FROM MY MOTHER MY HAIRDRESSER AND A BILLION OF MY CLOSEST FRIENDS EVEN THE RECEPTIONIST AT MY HOTEL HAD SEEN ME YOU WERE ON THE ACADEMY AWARDS LAST NIGHT RIGHT BEHIND CLINT EASTWOOD'S MOTHER SHE SAID THE NEXT MORNING IN FACT ONE OF THE FEW PEOPLE I HAVEN'T HEARD FROM IS CLINT BUT HEY YOU NEVER KNOW 9304010159 930401 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE WORLD'S BIGGEST SOFTWARE COMPANY MICROSOFT THIS WEEK STARTED SELLING A NEW VERSION OF THE WORLD'S MOST WIDESPREAD SOFTWARE PROGRAM THE MSDOS OPERATING SYSTEM THE SOFTWARE INDUSTRY'S MARKETING MACHINE AS USUAL HAS KICKED INTO HIGH GEAR FOR THE EVENT TO CITE ONE EXAMPLE THE EGGHEAD SOFTWARE CHAIN HELD SPECIAL LATENIGHT HOURS TO INTRODUCE MSDOS 60 THE NEW VERSION AT THE EGGHEAD STORE IN MY RESIDENTIAL NEIGHBORHOOD THE PLACE WAS QUICKLY JAMMED WITH CUSTOMERS FORMING LONG LINES TO BUY THE 50 PROGRAM BUT THE ADVENT OF MSDOS 60 ISN'T AN EPOCHAL EVENT IN FACT THE REVISION DOESN'T CONTAIN ANY FUNDAMENTAL CHANGES TO THE ANCIENT COMPLICATED OPERATING SYSTEM THE SOFTWARE THAT CONTROLS THE BASIC FUNCTIONS OF THE TENS OF MILLIONS OF IBMCOMPATIBLE COMPUTERS THE NEW VERSION PERPETUATES THE BEWILDERING DOS INTERFACE THAT HAS FRUSTRATED COUNTLESS PC USERS WITH ITS CRYPTIC C PROMPT AND FINICKY LITERAL COMMANDS LIKE FORMAT A /N9 /T40 WHICH FORMATS A STANDARD FLOPPY DISK INDEED IF YOUR PC IS WORKING FINE NOW WITH AN OLDER VERSION OF MSDOS YOU DON'T NEED TO BUY VERSION 60 I KNOW OF NO CURRENT OR PLANNED COMPUTER PROGRAMS THAT REQUIRE THE NEW VERSION TO RUN INCLUDING MICROSOFT'S OWN GRAPHICAL WINDOWS SOFTWARE SO HOW DID MICROSOFT'S MARKETERS ENTICE MY NEIGHBORS TO LINE UP AT NIGHT FOR MSDOS 60 BY INCLUDING WITH MSDOS A BUNCH OF BASIC UTILITY PROGRAMS MANY LICENSED FROM LEADING UTILITY SOFTWARE COMPANIES INCLUDING SYMANTEC AND CENTRAL POINT AMONG THESE ARE PROGRAMS THAT CREATE BACKUP VERSIONS OF YOUR FILES ROOT OUT COMPUTER VIRUSES AND OPTIMIZE MEMORY USE MOST IMPORTANT ONE OF THE UTILITIES COMPRESSES THE FILES ON A DISK AND THUS RADICALLY EXPANDS THE DISK'S STORAGE CAPACITY IN EFFECT MICROSOFT HAS GRAFTED ONTO MSDOS A LOWCOST MULTIPLE UTILITY PACKAGE AND HAS LENT ITS IMPRIMATUR TO EACH OF THE UTILITIES INCLUDED THUS GIVING USERS THE CONFIDENCE THAT THEY ARE SAFE AND COMPATIBLE VIEWED IN THAT LIGHT MSDOS 60 IS A GOOD VALUE AND A SMART BUY FOR PEOPLE WHO AREN'T ALREADY REGULAR USERS OF THESE KEY UTILITIES UNLIKE THE BASIC FEATURES OF DOS THESE UTILITIES DON'T AUTOMATICALLY RUN WHEN YOU INSTALL THE NEW DOS ON YOUR COMPUTER YOU MUST CHOOSE TO USE THEM INITIALLY NONE OF THE UTILITIES ARE NEW AND IN MOST CASES THE MICROSOFT VERSIONS LACK SOME BELLS AND WHISTLES OF THE STANDALONE PRODUCTS BUT THOSE PRODUCTS COST MUCH MORE AND THE MICROSOFT VERSIONS INCLUDE ALL THEIR BASIC FEATURES THE TWO MOST INTERESTING UTILITIES IN MSDOS TO ME ARE DOUBLESPACE THE DATACOMPRESSION PROGRAM AND MEMMAKER THE MEMORY OPTIMIZER DOUBLESPACE ATTACKS ONE OF COMPUTER USERS' MOST COMMON PROBLEMS TOO LITTLE HARDDISK CAPACITY STANDARD WINDOWSCOMPATIBLE WORDPROCESSING AND SPREADSHEET PROGRAMS NOW TYPICALLY TAKE UP 15 MEGABYTES OR MORE AS CAN WINDOWS ITSELF THE RESULT IS THAT EVEN A 100MEGABYTE HARD DISK CONSIDERED QUITE LARGE TWO YEARS AGO MAY FILL UP QUICKLY TO SOLVE THE PROBLEM DOUBLESPACE SQUEEZES ALL YOUR DATA INTO A VIRTUAL COMPRESSED HARD DRIVE THAT'S REALLY ONE HUGE SPECIAL FILE THIS FILE LOOKS TO DOS 60 LIKE A REGULAR HARD DISK ONLY BIGGER USUALLY NEARLY TWICE AS LARGE THUS THE PROGRAM'S NAME BECAUSE THE FILES INSIDE IT HAVE BEEN INDIVIDUALLY SHRUNK NO CONTENT IS LOST IN THE PROCESS I'VE BEEN USING DOUBLESPACE FOR ABOUT A MONTH ON BOTH MY OFFICE AND HOME PCS WITHOUT ANY PROBLEMS ON MY OFFICE COMPUTER IT INCREASED MY HARD DRIVE CAPACITY FROM AROUND 124 MEGABYTES TO 230 MEGABYTES OR SO SIMILAR PRODUCTS HAVE BEEN ON THE MARKET FOR YEARS NOTABLY STACKER WHOSE MAKER STAC ELECTRONICS IS SUING MICROSOFT OVER DOUBLESPACE THESE PRODUCTS HAVE SOME FEATURES DOUBLESPACE LACKS INCLUDING THE ABILITY TO EASILY UNDO THE COMPRESSION BUT MICROSOFT CLAIMS DOUBLESPACE IS SUPERIOR BECAUSE IT IS TIGHTLY INTEGRATED WITH DOS AND STARTS WORKING ALMOST THE INSTANT YOU TURN ON THE COMPUTER ALL THE NORMAL DOS COMMANDS TREAT THE COMPRESSED DRIVE LIKE A REAL ONE IF YOU CHOOSE TO USE DOUBLESPACE I RECOMMEND BACKING UP YOUR HARD DISK FIRST AND MAKING SEVERAL FLOPPY DISKS WITH DOS 60 THAT ARE CAPABLE OF BOOTING UP YOUR COMPUTER IN CASE YOUR HARD DISK EVER CRASHES BOOTUP DISKS CREATED BY OLDER VERSIONS OF DOS WON'T RECOGNIZE THE COMPRESSED HARD DRIVE OR ALLOW YOU TO WORK WITH THE FILES INSIDE IT THE MEMMAKER PROGRAM EXAMINES TWO SPECIAL FILES DOS USES TO CONFIGURE YOUR SYSTEM WHICH GO BY THE TYPICALLY CONVOLUTED NAMES OF AUTOEXEC BAT AND CONFIGSYS IT THEN REWRITES THEM SO THAT YOUR COMPUTER HAS MORE MEMORY FREE TO RUN PROGRAMS IN MY CASE IT ADDED NEARLY 100 KILOBYTES OF FREE MEMORY WHICH IS A LOT THE NEW VERSION ALSO INCLUDES A FEW OTHER NICE TOUCHES THERE'S A SPECIAL FEATURE THAT LETS YOU TRANSFER FILES BETWEEN TWO COMPUTERS OVER A CABLE AND A PROGRAM THAT PRESERVES BATTERY LIFE ON LAPTOPS MSDOS IS A FADING PRODUCT BUT FOR NOW IT'S A NECESSARY EVIL NEXT YEAR FOR THE FIRST TIME MICROSOFT PLANS A MAINSTREAM VERSION OF WINDOWS THAT WON'T REQUIRE MSDOS TO BE INSTALLED ON A PC TO OPERATE AFTER THAT MOST USERS WON'T NEED THIS CREAKY OPERATING SYSTEM WRITTEN MORE FOR PROGRAMMERS THAN REGULAR FOLKS BUT UNTIL THEN THE UTILITIES INCLUDED WITH MSDOS 60 MAKE IT A LITTLE MORE EFFICIENT AND EASIER TO USE 9304010158 930401 CORPORATE FOCUS VW CHIEF DECLARES A CRISIS AND PRESCRIBES BOLD ACTION JOB AND COST CUTS ARE OUTLINED AS CAR MAKER REPORTS FIRSTQUARTER LOSS BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL WOLFSBURG GERMANY REELING FROM A FIRSTQUARTER LOSS OF 125 BILLION MARKS 7729 MILLION VOLKSWAGEN AG CHAIRMAN FERDINAND PIECH SAID EUROPE'S BIGGEST AUTO MAKER IS IN A CRISIS AND OUTLINED A PLAN FOR DRASTIC ACTION THE 55YEAROLD MR PIECH WHO TOOK OVER AS CHAIRMAN IN JANUARY PAINTED A GRIM PICTURE OF A ONETIME POWERHOUSE NOW TOTTERING UNDER A BLOATED COST STRUCTURE AND BATTERED BY COLLAPSING SALES APPEARING FOR THE FIRST TIME AS CHAIRMAN AT THE COMPANY'S ANNUAL NEWS CONFERENCE HE PEPPERED HIS COMMENTS WITH REFERENCES TO OUR CRISIS AND COLLAPSING PROFITS MR PIECH IS PRESCRIBING HARSH MEDICINE TO PULL THE WORLD'S FOURTHLARGEST CAR MAKER OUT OF ITS SLUMP VW MUST DRASTICALLY ALTER THE WAY IT BUILDS CARS SLASH EMPLOYMENT AND BEAT DOWN THE HIGH PRICES IT PAYS SUPPLIERS HE DECLARED WE HAVE TO BE FULLY COMPETITIVE WITH THE JAPANESE WITHIN TWO YEARS HE INTONED IN THE PROCESS HE SAID VW WILL SHED 20000 OF ITS 274000 WORKERS WORLDWIDE BY THE END OF THIS YEAR MORE THAN HALF THE 36000 JOBS EARMARKED FOR ELIMINATION OVER THE LONGER TERM MR PIECH WOULDN'T SAY WHETHER FURTHER CUTS WILL BE NECESSARY BEYOND THIS FIGURE MR PIECH INSISTED VW WILL BREAK EVEN IN 1993 BARRING SOME DISASTER HE SAID VW SHOULD SEE LOSSES NARROW IN THE SECOND QUARTER AND ENJOY A CLEAR UPTURN IN THE SECOND HALF OF 1993 BUT THE FIESTY AUSTRIANBORN ENGINEER FACES A TALL ORDER TO MEET THAT GOAL ANALYSTS SAY VOLKSWAGEN HAS TURNED INTO THE GENERAL MOTORS OF EUROPE SAYS JOHN LAWSON AN AUTO ANALYST AT DRI EUROPE IN LONDON THEY'RE THE HIGHCOST PRODUCER IN THIS MARKET INDEED WHAT'S HAPPENING TO VW NOW HAS PARALLELS WITH THE CRISIS THAT ENGULFED GM'S NORTH AMERICAN OPERATIONS TWO YEARS AGO WHEN RECESSION TILTED SALES INTO A NOSEDIVE LIKE GM'S NORTH AMERICAN OPERATIONS VW ALLOWED ITS COSTS TO SOAR OUT OF CONTROL DURING BOOM TIMES LAST YEAR VW SOLD A RECORD 35 MILLION VEHICLES WORLDWIDE BUT DESPITE A 12 JUMP IN SALES TO 854 BILLION MARKS 528 BILLION IN 1992 EARNINGS PLUNGED 87 TO JUST 147 MILLION MARKS MR PIECH CONCEDED THAT VW HAD TO RUN ITS FACTORIES ON OVERTIME JUST TO MAKE THAT SMALL PROFIT CURRENTLY MR PIECH ADDED OUR BREAKEVEN IS ABOVE 90 OF CAPACITY BUT WE'RE RAPIDLY HEADING TO A BREAKEVEN BELOW 90 BUT SOME OF MR PIECH'S STRONGER EUROPEAN COMPETITORS ALREADY HAVE BREAKEVEN POINTS BELOW 70 OF CAPACITY MOREOVER THE HIGH ECONOMIC TIDES THAT KEPT VW OFF THE ROCKS LAST YEAR ARE RUNNING OUT FAST VOLKSWAGEN HAS HAD TO IDLE ASSEMBLY LINES AT ALL ITS GERMAN FACTORIES AS SALES PLUNGED 25 IN GERMANY IN THE FIRST QUARTER OF 1993 AND EUROPEWIDE SALES HAVE SKIDDED 17 THE VOLKSWAGEN GROUP INCLUDES THE AUDI SKODA AND SEAT MARQUES EUROPE'S RECENT CURRENCY TURMOIL HAS HIT VW HARD TOO IN ITALY AND BRITAIN WHICH DEVALUED CURRENCIES AGAINST THE GERMAN MARK VW SAW PRICES EFFECTIVELY SLASHED 22 THE COMPANY HAS STEADILY INCREASED PRICES TO TRY TO COMPENSATE BUT SO FAR HAS RECOUPED ONLY ABOUT 10 BUT VW'S BIGGEST PROBLEMS AREN'T EXTERNAL THEY'RE FOUND AT ITS CORE PARTICULARLY AT THE MASSIVE WOLFSBURG ASSEMBLY COMPLEX WOLFSBURG IS THE HEART AND SOUL OF VW AND FOR YEARS ITS SHEER SIZE WAS PART OF ITS GLORY THE COMPLEX HAS 57000 EMPLOYEES 43 MILES OF TRAIN TRACK 10 LOCOMOTIVES TO MOVE THINGS INSIDE THE FACTORY AND 4000 BICYCLES TO HELP WORKERS GET AROUND IT WAS HERE IN 1955 THAT VW CELEBRATED THE PRODUCTION OF THE MILLIONTH BEETLE THE CAR THAT MOTORIZED POSTWAR GERMANY AND MADE VW A LEADING AUTO EXPORTER IN THE 1960S BUT INDUSTRY EXPERTS SAY WOLFSBURG IS TOO LARGE AND INFLEXIBLE AND HAS FAR TOO MANY WORKERS TO COMPETE PARTICULARLY WITH NEW LEANER PLANTS BEING OPENED BY JAPANESE AUTO MAKERS IN THE UNITED KINGDOM THROUGHOUT THE FACTORY WHICH COVERS AN AREA THE SIZE OF MONACO ARE NICHES FILLED WITH PARKED CARS WAITING FOR REPAIRS IN ONE AREA OF THE PLANT WHERE FIVE OF THE SEVEN ASSEMBLY LINES MERGE THERE ARE SOMETIMES TRAFFIC JAMS AS WORKERS TRY TO JOCKEY NEWLY ASSEMBLED GOLFS INTO TEST BAYS AND REPAIR STATIONS SUCH REWORK IS ONE REASON THAT VW NEEDS TWICE AS MUCH LABOR TO PRODUCE A SMALL CAR AS SOME JAPANESE PRODUCERS NEED ANALYSTS SAY WOLFSBURG IS AN INDUSTRIAL DINOSAUR THE LIKES OF WHICH DOESN'T EXIST ANYWHERE ELSE ON THE PLANET SAYS DANIEL T JONES A PROFESSOR AT THE CARDIFF BUSINESS SCHOOL IN WALES WHO STUDIES THE AUTO INDUSTRY BUT AS GM IS DISCOVERING IN ITS TROUBLED NORTH AMERICAN OPERATIONS TRANSFORMING SUCH BLOATED OPERATIONS IS A PAINFUL PROCESS THAT CAN TAKE NOT ONE OR TWO QUARTERS BUT YEARS VW IS GETTING A LATE START IN ITS RUN TO CATCH UP WITH MORE EFFICIENT RIVALS NOT LEAST AMONG THEM GM EUROPE VW'S ARCHRIVAL IN THE GERMAN MARKET INDEED GM EUROPE LEADERS HAVE BEEN PUTTING PRESSURE ON THEIR GERMAN ADAM OPEL AG OPERATIONS TO CUT COSTS FOR MORE THAN FIVE YEARS MR PIECH'S STRATEGY TO COME FROM BEHIND PLAY HARDBALL THE TOUGH STUFF STARTS WITH COMPETITORS AT A RECENT CONFERENCE IN DAVOS SWITZERLAND MR PIECH CONFRONTED TOP EXECUTIVES OF TOYOTA MOTOR CORP AND NISSAN MOTOR CO WITH A SPEECH DENOUNCING JAPAN'S RELUCTANCE TO BUY IMPORTED CARS ACCORDING TO ONE PARTICIPANT MR PIECH SHOOK HIS FINGER AT THE JAPANESE EXECUTIVES AND DECLARED HOW CAN YOU LIVE WITH YOURSELVES BUT MR PIECH'S MOST BLATANT MOVE TO DATE WAS TO INITIATE AND WIN LAST MONTH THE HIGHLY PUBLICIZED AND CONTROVERSIAL TUGOFWAR WITH GM PRESIDENT JOHN F SMITH JR OVER J IGNACIO LOPEZ DE ARRIORTUA MR LOPEZ A SPANIARD WITH A QUIRKY PERSONALITY WHO HAS BUILT A TOWERING REPUTATION AS A COSTCUTTER WAS GIVEN A SPOT ON VW'S MANAGEMENT BOARD WITH RESPONSIBILITY FOR PRODUCTION AND PURCHASING HE HAS TOLD COWORKERS HE EXPECTS TO SQUEEZE MORE THAN EIGHT BILLION MARKS FROM VW'S COSTS OVER THE NEXT FIVE YEARS ALONE LARGELY BY DEMANDING PRICE CUTS FROM SUPPLIERS AS HE DID AT GM YESTERDAY MR PIECH TRIED TO SOOTHE JANGLED SUPPLIERS BY ASSURING THEM THAT WE WILL WORK TOGETHER TO MAKE THESE CHANGES BUT HE ADDED PARTS PRICES MUST COME DOWN MEANWHILE THE CONTROVERSY OVER MR LOPEZ'S CAREER CHANGE MAY NOT BE OVER MR LOPEZ SAT THROUGH A SERIES OF HIGHLEVEL STRATEGY SESSIONS AT GM EUROPE IN EARLY MARCH DURING WHICH PLANS FOR CAPITALIZING ON VW'S PROBLEMS WERE DISCUSSED ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION NOW GM SAYS ITS LEGAL STAFF IS CHECKING TO ASSURE THAT ITS CONFIDENTIAL INFORMATION IS SECURE AND HASN'T RULED OUT LEGAL ACTION A VW SPOKESMAN DEFLECTED QUESTIONS ABOUT THE SITUATION SAYING MR LOPEZ HAS ASKED TO BE LEFT ALONE FOR HIS FIRST 100 DAYS VW ALSO WON'T COMMENT ON REPORTS THAT MR LOPEZ COULD RECEIVE AS MUCH AS 20 MILLION OVER FIVE YEARS MR PIECH HOWEVER CLEARLY WANTS TO DIRECT ATTENTION AWAY FROM THE LOPEZ SIDESHOW AND ONTO THE JOB OF MAKING VW COMPETITIVE AGAIN AT HIS NEWS CONFERENCE MR PIECH SAID VW CAN PRODUCE COST SAVINGS WITHIN WEEKS SIMPLY BY SLASHING THE VARIETY OF PARTS IT USES HE BLASTED WASTEFUL ENGINEERING SUCH AS THE 30 DIFFERENT AXLES NOW SPECIFIED FOR VARIOUS VERSIONS OF THE GOLF SUCH VARIETY IS COSTLY HE SAID AND IT ADDS NOTHING TO THE BUSINESS BUT VW'S FUNDAMENTAL MANUFACTURING AND LABOR PROBLEMS AREN'T CANDIDATES FOR A QUICK FIX FOR THE NEAR TERM VW IS TIED TO GERMANY FOR THE BULK OF ITS PRODUCTION THE COMPANY EVEN HAS COMMITTED TO SPENDING 42 BILLION MARKS ON A STATEOFTHEART PLANT IN EASTERN GERMANY DESPITE SLUMPING DEMAND AND HIGH COSTS GERMAN LAW COULD HOBBLE VW'S EFFORTS TO CUT COSTS IN ITS HOME OPERATIONS IF VW TRIES TO LAY OFF WORKERS THE LAW COULD COMPEL PAYOUTS AS HIGH AS 50000 MARKS 31000 FOR EACH EMPLOYEE POLITICS COULD SLOW DOWN VW'S COSTCUTTING TOO THE WESTERN GERMAN STATE OF LOWER SAXONY WHERE WOLFSBURG AND FOUR OTHER VW PLANTS ARE LOCATED OWNS 20 OF THE COMPANY STATE OFFICIALS ON VW'S SUPERVISORY BOARD ARE LIKELY TO JOIN UNIONS IN FIGHTING DRASTIC JOB CUTS ALSO DAUNTING IS THE CHALLENGE OF UNDOING YEARS OF INVESTMENT AND TRADITION AT THE COMPANY'S CORE WOLFSBURG FACILITY WHAT WE REALLY NEED IN A PLACE LIKE THIS ONE VW OFFICIAL SAYS IS A CLEAN SHEET OF PAPER 9304010157 930401 TECHNOLOGY & HEALTH ULCER DRUGS DON'T INCREASE THE EFFECTS OF ALCOHOL NEW MEDICAL STUDY FINDS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY CHALLENGED THE IDEA THAT ULCER DRUGS CAN ENHANCE THE EFFECTS OF ALCOHOL ADDING FUEL TO A CONTROVERSY OVER A PUTATIVE HAZARD OF TAKING THE PILLS RESEARCHERS SAID FOUR WIDELY USED ULCER MEDICINES KNOWN AS H2 BLOCKERS DON'T SIGNIFICANTLY AFFECT THE BODY'S ABILITY TO PROCESS MODERATE AMOUNTS OF ALCOHOL CONSUMED WITH A MEAL THE FINDING CONTRADICTS A PREVIOUS WIDELY PUBLICIZED STUDY THAT PROVOKED CONSIDERABLE CONCERN AMONG REGULATORS AND DRUG COMPANIES THE EARLIER STUDY CONCLUDED THAT EITHER OF TWO OF THE DRUGS COULD CAUSE A PERSON'S BLOOD ALCOHOL LEVEL TO RISE ABOVE LEGAL LIMITS FOR DRIVING AN AUTOMOBILE AFTER LESS THAN TWO DRINKS ULCER PILLS ARE AMONG THE MOST COMMONLY PRESCRIBED DRUGS IN THE US AND ALCOHOL IS WIDELY USED AS WELL IF THERE IS AN INTERACTION BETWEEN THE TWO IT IS IMPORTANT FOR CLINICIANS AND PATIENTS TO KNOW THAT SAID JEANPIERRE RAUFMAN PROFESSOR OF MEDICINE AT THE STATE UNIVERSITY OF NEW YORK HEALTH SCIENCES CENTER BROOKLYN NY WHO HEADED THE TEAM THAT CARRIED OUT THE LATEST EXPERIMENT UNDER THE CONDITIONS IN WHICH WE PERFORMED THIS STUDY THERE WASN'T A SIGNIFICANT INTERACTION THE FOUR ULCER DRUGS USED IN THE STUDY ACCOUNT FOR ABOUT 4 BILLION IN SALES ANNUALLY THEY ARE GLAXO HOLDINGS PLC'S ZANTAC SMITHKLINE BEECHAM PLC'S TAGAMET MERCK & CO'S PEPCID AND ELI LILLY & CO'S AXID THE EARLIER STUDY WHICH WASN'T FUNDED BY THE DRUG INDUSTRY LINKED ZANTAC AND TAGAMET WITH SHARPLY HIGHER BLOODALCOHOL LEVELS BUT FOUND THAT MERCK'S PEPCID DIDN'T PROVOKE SUCH AN EFFECT AXID WASN'T INCLUDED IN THE STUDY THE CURRENT REPORT WHICH WAS FUNDED BY MERCK DIDN'T FIND ANY ADVANTAGE FOR PEPCID THOUGH IT CONFIRMED THAT THE DRUG DIDN'T LEAD TO HIGHER BLOODALCOHOL LEVELS DR RAUFMAN NOTED THE RESULTS OF THE NEW STUDY PUBLISHED IN TODAY'S ANNALS OF INTERNAL MEDICINE ARE SIMILAR TO A MIDMARCH FINDING OF A US FOOD AND DRUG ADMINISTRATION ADVISORY PANEL THE PANEL CONCLUDED THAT WHILE SOME H2 BLOCKERS INCREASE BLOODALCOHOL LEVELS THE INCREASES ARE NEITHER CLINICALLY NOR SOCIALLY SIGNIFICANT THE FDA WHICH ISN'T BOUND BY THE ADVISORY PANEL'S FINDING DECIDED TO SEEK MORE DATA FROM THE COMPANIES BEFORE RULING WHETHER A LABEL CHANGE IS NECESSARY RESEARCHERS WHO DID THE EARLIER STUDY STUCK TO THEIR POSITION THAT INCREASED BLOODALCOHOL LEVEL IS A POTENTIALLY FREQUENT SIDE EFFECT OF SOME H2 BLOCKERS WE BELIEVE THE INCREASES COULD SIGNIFICANTLY AFFECT SOMEONE'S ABILITY TO DRIVE A CAR OR PILOT AN AIRPLANE SAID THOMAS GENTRY OF THE ALCOHOL RESEARCH AND TREATMENT CENTER AT THE BRONX VETERANS AFFAIRS MEDICAL CENTER AND MOUNT SINAI SCHOOL OF MEDICINE NEW YORK HE SAID THE DRUG'S PACKAGING LABEL SHOULD INCLUDE A MODEST WARNING TO THAT EFFECT DR GENTRY SAID THE CONCENTRATION OF ALCOHOL USED IN THE NEW STUDY WAS ABOUT HALF THAT USED IN THE EARLIER MOUNT SINAI STUDY AND WASN'T SUFFICIENT TO PROVOKE SIGNIFICANT RESULTS INDUSTRY SCIENTISTS GENERALLY DISAGREED WITH DR GENTRY THEIR STUDY IS THE OUTLIER SAID JAMES PALMER VICE PRESIDENT OF CLINICAL OPERATIONS AT GLAXO'S US UNIT ALL THE OTHER STUDIES SHOW THERE WAS NO EFFECT ULCER DRUGS ARE AVAILABLE ONLY BY PRESCRIPTION BUT OVERTHECOUNTER VERSIONS ARE EXPECTED WITHIN THE NEXT FEW YEARS DR RAUFMAN SAID THAT THIS IS ONE REASON WHY THE NEW STUDY IS IMPORTANT IF THERE WAS A SIGNIFICANT INTERACTION OF THESE DRUGS WITH ALCOHOL THAT WOULD BE ONE REASON TO BE VERY CAUTIOUS ABOUT ALLOWING THEM TO GO OVERTHECOUNTER THE NEW STUDY INVOLVED 23 NONALCOHOLIC MEN EACH RECEIVED STANDARD DOSES OF ONE OF THE DRUGS FOR SEVEN DAYS AND SPENT ANOTHER SEVEN DAYS NOT TAKING ANY ULCER DRUG AT THE END OF EACH SEVEN DAYS THE SUBJECTS DRANK AN ORANGE JUICEALCOHOL COCKTAIL THAT DR RAUFMAN DESCRIBED AS THE EQUIVALENT OF TWO AND ONEHALF CANS OF BEER BREATH AND BLOOD TESTS AT THE END OF EACH SEVENDAY PERIOD FOUND BLOODALCOHOL LEVELS AFTER TAKING THE DRUGS WEREN'T SIGNIFICANTLY DIFFERENT FROM THOSE FOLLOWING THE WEEK OF NO TREATMENT IT SEEMS SAFE TO CONCLUDE THAT THE POSSIBLE HARMFUL INTERACTION OF THESE AGENTS SHOULD BE RELEGATED TO THE STATUS OF A NONPROBLEM SAID MICHAEL D LEVITT OF THE VETERANS AFFAIRS MEDICAL CENTER MINNEAPOLIS IN AN EDITORIAL ACCOMPANYING THE STUDY 9304010156 930401 AL LABORATORIES OBTAINS RIGHTS FORT LEE NJ AL LABORATORIES INC SAID IT OBTAINED EXCLUSIVE WORLDWIDE MARKETING RIGHTS TO TECHNOLOGY RELATED TO THE ABSORPTION OF DRUGS IN THE COLON DEVELOPED BY TWO ISRAELI INSTITUTIONS TERMS WEREN'T DISCLOSED AL LABORATORIES SAID IT WILL INITIALLY SPEND 5 MILLION TO DEVELOP PRODUCTS BASED ON THE TECHNOLOGY HEBREW UNIVERSITY AND PERIO PRODUCTS LTD WHOSE LARGEST SHAREHOLDER IS ISRAEL CHEMICALS DISCOVERED THE TECHNOLOGY AL LABORATORIES SAID IT HAS TAKEN A MINORITY STAKE IN PERIO WHICH IS CURRENTLY DEVELOPING THE TECHNOLOGY 9304010154 930401 WHO'S NEWS PIRELLI SPA PIRELLI SPA MILAN LARRY JAMESON 55 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PIRELLI CABLES NORTH AMERICA FLORHAM PARK NJ WITH RESPONSIBILITY FOR US OPERATIONS MR JAMESON PREVIOUSLY WAS PRESIDENT OF BASF CORP'S COATINGS AND COOLANTS DIVISION IN CLIFTON NJ HE SUCCEEDS OF RAIMONDO 49 WHO RESIGNED FOR PERSONAL REASONS THE COMPANY SAID THE PIRELLI UNIT IS A MAJOR PRODUCER OF FIBEROPTIC TELECOMMUNICATIONS CABLES ENERGY TRANSMISSION CABLES AND RELATED PRODUCTS AND SERVICES THE PARENT IS ALSO A MAJOR PRODUCER OF TIRES 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 9304010153 930401 WHO'S NEWS CITATION COMPUTER SYSTEMS INC CITATION COMPUTER SYSTEMS INC ST LOUIS FRED L BROWN AND WILLIAM J SEABROOK WERE NAMED TO THE BOARD OF THIS PROVIDER OF INTEGRATED INFORMATION SYSTEMS FOR THE HEALTHCARE INDUSTRY BRINGING THE NUMBER OF DIRECTORS TO SEVEN MR BROWN 52 YEARS OLD IS CHIEF EXECUTIVE OFFICER OF CHRISTIAN HEALTH SERVICES A MULTIHOSPITAL SYSTEM MR SEABROOK 59 IS CHAIRMAN OF DATASYSTEMS CONSULTANTS LTD A HEALTHCARE INFORMATION SYSTEMS CONSULTING BUSINESS 9304010152 930401 BUSINESS BRIEF US STEEL UNION CUT OFF NEGOTIATIONS COMPANY BALKS AT PUSH FOR JOB SECURITY PITTSBURGH USX CORP AND THE UNITED STEELWORKERS BROKE OFF TALKS INDICATING THE DIFFICULTY THE UNION FACES IN INTRODUCING CREATIVE LABOR ACCORDS TO THE STEEL INDUSTRY THE DISRUPTION DOESN'T INDICATE ANY IMMEDIATE DANGER OF A STRIKE THE CONTRACT WITH USX'S US STEEL DOESN'T EXPIRE UNTIL JAN 31 1994 AND THE UNION CONTINUES TO TALK WITH THREE OTHER STEELMAKERS WHOSE CONTRACTS EXPIRE ON JULY 31 1993 BUT THE BREAK IN NEGOTIATIONS MEANS THE UNION IS HAVING TROUBLE SELLING ITS NEW PROGRAM WHICH OFFERS STEELMAKERS FLEXIBLE WORK RULES AND METHODS OF REDUCING WORK FORCES IN EXCHANGE FOR MORE EMPLOYMENT SECURITY THESE ARE TOUGH ISSUES NORMALLY NOT DEALT WITH AT THE BARGAINING TABLE SAID ANDREW V PALM THE UNION'S CHIEF US STEEL NEGOTIATOR IT MADE US UNCOMFORTABLE AND OBVIOUSLY THE COMPANIES ARE TOO THE STEELWORKERS HAD SELECTED US STEEL THE INDUSTRY LEADER TO SET A PATTERN FOR OTHER STEELMAKERS BUT US STEEL HAD TROUBLE WITH UNION POSITIONS ON SUCH ISSUES AS BOARD REPRESENTATION AND COMPANY NEUTRALITY ON ORGANIZING THE TWO SIDES AREN'T FIGHTING MR PALM SAID BUT WE DECIDED WE BETTER TRY SOMEONE ELSE US STEEL SAID THAT THE PARTIES HAD MADE GOOD PROGRESS BUT HAD NO DATE FOR RESUMING TALKS THE UNION NOW WILL TURN TO ONE OF THREE OTHER STEELMAKERS TO SET A PATTERN FOR THE INDUSTRY UNION OFFICIALS SAID THEY FAVOR INLAND STEEL INDUSTRIES INC OR NATIONAL STEEL CORP WHICH IS ABOUT 70OWNED BY NKK CORP OF JAPAN HOWEVER BETHLEHEM STEEL CORP WHICH LED NEGOTIATIONS FOR THE LAST TWO CONTRACTS IS ALSO IN TALKS THE NEGOTIATIONS COVER 44000 WORKERS AT THE FOUR COMPANIES CHARLES A BRADFORD A STEEL ANALYST WITH UBS SECURITIES SAID THE UNION IS LIKELY TO TAKE A TOUGHER STANCE WITH THESE COMPANIES BECAUSE OF A RECENT SURGE IN ORDERS ALSO ALL THREE ARE WEAKER THAN US STEEL AND MAY BE MORE EAGER FOR A QUICK RESOLUTION BUT HE ADDED IF THEY'RE TOO WEAK YOU WON'T SET A PRECEDENT 9304010151 930401 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 5 1/2 HIGH 3 3/8 LOW 4 1/2 BID 5 1/2 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 312 30 TO 44 DAYS 310 45 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 319 30 DAYS 319 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 267 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 303 30 DAYS 303 60 DAYS 305 90 DAYS 308 120 DAYS 310 150 DAYS 311 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 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 729 60 DAYS 739 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 725 60 DAYS 735 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 279 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304010150 930401 WHO'S NEWS MA HANNA CO MA HANNA CO CLEVELAND RONALD G FOUNTAIN 54 YEARS OLD RESIGNED AS CHIEF FINANCIAL OFFICER OF THIS SPECIALTY CHEMICAL CONCERN HANNA WHICH HASN'T YET NAMED A SUCCESSOR SAID MR FOUNTAIN PLANS TO WRITE AND TO TEACH AND WILL ACT AS A CONSULTANT TO THE COMPANY 9304010149 930401 WHO'S NEWS NATIONSBANK NAMES 5 NOMINEES FOR BOARD CHARLOTTE NC NATIONSBANK CORP IS PROPOSING TO NAME FIVE NEW DIRECTORS TO ITS BOARD AT ITS ANNUAL MEETING APRIL 28 TO SUCCEED FIVE OTHERS WHOSE TERMS ARE EXPIRING ACCORDING TO THE COMPANY'S PROXY THE BOARD NOMINEES ARE THOMAS E CAPPS 57 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DOMINION RESOURCES INC RICHMOND VA THOMAS G COUSINS 61 CHAIRMAN AND CHIEF EXECUTIVE COUSINS PROPERTIES INC MARIETTA GA PAUL FULTON 58 PRESIDENT SARA LEE CORP CHICAGO E BRONSON INGRAM 61 PRESIDENT AND CHIEF EXECUTIVE INGRAM INDUSTRIES INC NASHVILLE TENN AND RONALD TOWNSEND 51 PRESIDENT GANNETT TELEVISION UNIT OF GANNETT CO ARLINGTON VA LEAVING THE BOARD ARE WILLIAM W BERRY RETIRED CHAIRMAN OF DOMINION RESOURCES ARNOLD B MCKINNON CHAIRMAN OF THE EXECUTIVE COMMITTEE NORFOLK SOUTHERN CORP NORFOLK VA B FRANKLIN SKINNER RETIRED CHAIRMAN AND CHIEF EXECUTIVE BELLSOUTH TELECOMMUNICATIONS INC ATLANTA W ROGER SOLES RETIRED CHAIRMAN AND CHIEF EXECUTIVE JEFFERSONPILOT CORP GREENSBORO NC AND ALBERT F SLOAN RETIRED CHAIRMAN LANCE INC CHARLOTTE NC 9304010148 930401 FINANCING BUSINESS MERCK & CO MERCK & CO WHITEHOUSE STATION NJ SAID IT FILED A SHELF REGISTRATION TO ISSUE UP TO 1 BILLION OF DEBT SECURITIES THE PHARMACEUTICAL COMPANY SAID PROCEEDS WOULD BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING REDUCTION OF SHORTTERM DEBT 9304010146 930401 PEPPERAND SALT WHO TREAT YOU NOT LIKE ROYALTY BECAUSE I FORGET EVERYTHING 9304010145 930401 WEDNESDAY'S MARKETS STOCKS END DAY MIXED AS BONDS AND DOLLAR FALL BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES ENDED MIXED AMID FEARS THAT THE ECONOMY IS SLOWING BOND PRICES SLIPPED AND THE DOLLAR HIT A POSTWORLD WAR II LOW AGAINST THE YEN THE DOW JONES INDUSTRIAL AVERAGE FELL 2216 POINTS TO 343511 STANDARD & POOR'S 500STOCK INDEX EDGED 030 LOWER TO 45167 BUT THE NASDAQ COMPOSITE INDEX GAINED 388 TO 69013 ANALYSTS SAID THERE IS GROWING CONCERN AMONG INVESTORS THAT THE ECONOMY IS LOSING ITS MOMENTUM THE PURCHASING MANAGEMENT ASSOCIATION OF CHICAGO REPORTED THAT ITS INDEX OF AREA BUSINESS ACTIVITY SLIPPED TO 607 LAST MONTH FROM AN UNREVISED 608 IN FEBRUARY AND THE 05 GAIN IN THE INDEX OF LEADING ECONOMIC INDICATORS WAS SLIGHTLY WEAKER THAN EXPECTED YESTERDAY'S DOWNBEAT STATISTICS CAME ON THE HEELS OF TUESDAY'S REPORT OF A SURPRISINGLY SHARP DROP IN CONSUMER CONFIDENCE IN MARCH TAKEN TOGETHER THE ECONOMIC DATA SUGGEST THAT CORPORATE PROFITS MIGHT NOT GROW AT THE ROBUST PACE EXPECTED BY SOME ANALYSTS JOSEPH BATTIPAGLIA SENIOR INVESTMENT STRATEGIST AT GRUNTAL & CO SAID THE STOCK MARKET WILL CONTINUE TO BE DRIVEN BY LARGE INSTITUTIONAL MONEY MANAGERS DEPLOYING SOME OF THEIR HUGE AMOUNTS OF CASH BUT LOOKING FORWARD WHAT YOU NEED IS A DYNAMIC EXPANSION OF EARNINGS AND THAT'S WHERE WE'LL COME UP SHORT MR BATTIPAGLIA SAID WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX ADVANCED 022 TO 10106 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2757 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1161 ISSUES ADVANCED AND 729 DECLINED BOND PRICES SLIPPED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST 1/4 POINT OR 250 FOR EACH 1000 FACE AMOUNT TO YIELD 693 THE DOLLAR TUMBLED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16060 MARKS AND 11475 YEN COMPARED WITH 16173 MARKS AND 11656 YEN TUESDAY 9304010144 930401 FINANCING BUSINESS REPUBLIC GOLDFIELDS INC REPUBLIC GOLDFIELDS INC TORONTO SAID IT COMPLETED ITS DEBT RESTRUCTURING WITH TWO CANADIAN BANKS AND HAS ELIMINATED ALL OF ITS SHORTTERM DEBT THE MINING CONCERN SAID ITS ONLY REMAINING DEBT IS A TWOYEAR TERM LOAN OF 900000 CANADIAN DOLLARS US719000 REPUBLIC ALSO SAID IT SOLD 440000 UNITS AT C1 EACH IN A PRIVATE PLACEMENT EACH UNIT CONSISTS OF ONE SHARE AND ONE HALF OF A WARRANT ONE WARRANT ENTITLES THE HOLDER TO PURCHASE ONE SHARE AT C125 UNTIL MARCH 31 1994 AND AT C150 THEREAFTER THE COMPANY SAID THE PLACEMENT WILL LEAVE IT WITH 49 MILLION SHARES OUTSTANDING 9304010143 930401 WHO'S NEWS SHONEY'S INC'S SANDERS RESIGNS AS PRESIDENT OF RESTAURANT DIVISION NASHVILLE TENN SHONEY'S INC SAID STEPHEN C SANDERS RESIGNED AS PRESIDENT OF ITS RESTAURANT DIVISION TO BECOME A SHONEY'S FRANCHISEE SHONEY'S SAID JAMES W ARNETT JR PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT WILL ASSUME ADDITIONAL RESPONSIBILITIES OF OVERSEEING THE DIVISION ON AN INTERIM BASIS JOHN CLARK VICE PRESIDENT OF OPERATIONS FOR THE SHONEY'S RESTAURANT DIVISION AND WILLIAM MARSTELLAR A REGIONAL DIRECTOR OF THE DIVISION WILL SHARE MANAGEMENT RESPONSIBILITIES FOR THE RESTAURANT DIVISION THE TWO MEN WILL REPORT TO MR ARNETT MR SANDERS WHO IS 42 AND HAD BEEN WITH THE COMPANY 28 YEARS STARTING AT AGE 14 SAID HE DECIDED HE WANTED TO GO INTO BUSINESS FOR HIMSELF HE SAID HIS RECENT RECEIPT OF A LOT OF STOCK OPTIONS GAVE HIM FINANCIAL SECURITY THAT ALLOWS ME TO GO OUT AND DO THIS MR SANDERS SAID HE WAS ALSO MOTIVATED TO MAKE THE CAREER CHANGE BECAUSE IT WILL ENABLE HIM TO BE CLOSER TO HIS FATHER WHO LIVES IN LOUISIANA AND HAS FALLEN ILL TWO OF THE EIGHT STORES HE PLANS TO OPEN ARE SLATED TO BE IN LOUISIANA MR SANDERS SAID MR SANDERS SAID HE WAS TAKING THE STEP ON HIS OWN INITIATIVE AND WASN'T UNDER ANY PRESSURE FROM MANAGEMENT OR THE BOARD HE ALSO SAID HIS DECISION IS UNRELATED TO ANY OF A FLURRY OF RECENT EVENTS AT THE COMPANY INCLUDING ITS SETTLEMENT OF RACIAL DISCRIMINATION LITIGATION THE DEPARTURE IN DECEMBER OF LEONARD H ROBERT AS CHAIRMAN AND CHIEF EXECUTIVE AND THE RECENT SALE OF STOCK BY RAYMOND L DANNER THE COMPANY'S FOUNDER 9304010142 930401 MARKETING & MEDIA PEPSICO INC UNIT TO INTRODUCE PIZZA CALLED THE BIG FOOT BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL FIRST CAME THE BIG MAC NOW COMES THE BIG FOOT PEPSICO INC'S PIZZA HUT UNIT IS EXPECTED TO ANNOUNCE TODAY THE INTRODUCTION OF A PRODUCT CALLED THE BIG FOOT THE PIZZA A 1BY2FOOT RECTANGULAR PIE IS DESIGNED TO HELP THE FASTFOOD CHAIN BASED IN WICHITA KAN BETTER COMPETE AGAINST LITTLE CAESARS ENTERPRISES INC ACCORDING TO PEOPLE CLOSE TO PIZZA HUT LITTLE CAESARS IS KNOWN FOR ITS 2FOR1 OFFERS PIZZA HUT TESTED THE PRODUCT IN NEVADA MINNESOTA AND FLORIDA AND SAID IT WILL BE AVAILABLE NATIONWIDE BY JUNE ACCORDING TO SEVERAL FRANCHISEES IN TEST MARKETS THE 24SLICE PIZZA SOLD FOR 1099 DELIVERED OR 899 FOR CARRYOUT A PIZZA HUT LARGE PIZZA WITH ONE TOPPING CONTAINS 12 SLICES AND COSTS ABOUT 1150 BIG FOOT IS THE LATEST AND PERHAPS MOST VISIBLE ATTEMPT TO REVERSE SOFT SALES PIZZA HUT'S DOMESTIC SALES PER RESTAURANT SLIPPED FOR THE FIRST TIME IN YEARS IN 1992 THE COMPANY HAS TRIED TO ADDRESS THAT WITH A LUNCH BUFFET AND VARIOUS PROMOTIONS SUCH AS THE CURRENT OFFER OF TWO PIZZAS COOKIES AND A SALAD FOR ONE PRICE LITTLE CAESARS BASED IN DETROIT HAD ABOUT 2 BILLION IN SALES IN 1992 A 19 JUMP FROM 1991 SAYS TECHNOMIC INC A CHICAGO RESTAURANT CONSULTING GROUP SALES AT PIZZA HUT ROSE 5 TO ABOUT 43 BILLION ACCORDING TO TECHNOMIC MICHAEL MUELLER A RESTAURANT ANALYST AT MONTGOMERY SECURITIES INC SAYS PIZZA HUT NEEDED TO DEVELOP AN ITEM TO COMBAT LITTLE CAESARS' LOWPRICED OFFERINGS SUCH AS TWO PIZZAS WITH TWO LAYERS OF CHEESE AND TWO TOPPINGS FOR 798 BUT AS I THINK ABOUT IT I'M JUST NOT SURE WHAT THE VALUE APPEAL WOULD BE TO THE CONSUMER FOR THAT SIZE PIZZA WHEN THEY COULD GET TWO SMALLER PIZZAS FOR ABOUT THE SAME PRICE HE SAID RON PAUL PRESIDENT OF TECHNOMIC SAYS THE VALUE IS IN HOW MUCH FOOD YOU CAN GET AND HOW MANY PEOPLE YOU CAN FEED UNDER 10 BUT LITTLE CAESARS ISN'T WAITING UNTIL JUNE TO LAUNCH A PREEMPTIVE STRIKE LAST MONTH IT BEGAN ADVERTISING A 24SLICE BIGBIG CHEESE PIZZA FOR 888 9304010141 930401 FINANCING BUSINESS BURNHAM PACIFIC PROPERTIES INC BURNHAM PACIFIC PROPERTIES INC SAN DIEGO SAID ITS PUBLIC OFFERING OF THREE MILLION COMMON SHARES WAS PRICED AT 1975 A SHARE OR A TOTAL OF 593 MILLION THE OFFERING EXPECTED TO CLOSE APRIL 7 WAS INCREASED FROM AN ORIGINAL FILING FOR 25 MILLION SHARES BURNHAM PACIFIC A REAL ESTATE INVESTMENT TRUST SAID IT PLANS TO USE 35 MILLION OF THE NET PROCEEDS TO ACQUIRE PACIFIC WEST OUTLET CENTER A MANUFACTURERS OUTLET IN GILROY CALIF THE BALANCE WILL BE USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES INCLUDING THE REDUCTION OF BANK DEBT AND FUTURE ACQUISITIONS BURNHAM WILL HAVE 124 MILLION SHARES OUTSTANDING AFTER THE OFFERING NATWEST SECURITIES LTD AND KEMPER SECURITIES INC ARE UNDERWRITERS 9304010139 930401 INTERNATIONAL NESTLE TO SELL STOUFFER UNIT TO HONG KONG DEVELOPER ZURICH NESTLE SA SAID IT AGREED TO SELL ITS STOUFFER HOTEL HOLDINGS INC UNIT TO A BIG HONG KONG DEVELOPER THE SWISS FOOD GIANT DECLINED TO DISCLOSE THE PRICE OR OTHER TERMS OF THE TRANSACTION WHICH IS EXPECTED TO BE COMPLETED BEFORE JUNE 1 NESTLE HAS BEEN TRYING TO UNLOAD THE HOTEL CHAIN FOR YEARS IT ACQUIRED THE HOTELS ALONG WITH STOUFFER RESTAURANTS AND FROZEN FOODS IN 1973 AND ALWAYS WAS PRIMARILY INTERESTED IN THE FROZEN FOODS IT DISPOSED OF THE RESTAURANTS IN A MANAGEMENT BUYOUT LAST YEAR IN RECENT YEARS NESTLE HAS BEEN BUILDING ITS BUSINESS AS A SUPPLIER OF FOOD TO HOTELS AND RESTAURANTS AND IT HAS SOUGHT TO AVOID HAVING INTERESTS ON BOTH SIDES OF THAT BUSINESS THE STOUFFER CHAIN BASED IN SOLON OHIO OWNS OR MANAGES 40 HOTELS IN THE US MEXICO AND THE CARIBBEAN UNDER THE STOUFFER AND PRESIDENTE NAMES THE BUYER IS A COMPANY OWNED BY THE FAMILY OF CHENG YUTUNG OF HONG KONG MR CHENG IS CHAIRMAN OF NEW WORLD DEVELOPMENT CO A HONG KONG PROPERTY DEVELOPER WITH GLOBAL HOLDINGS HE OWNS THE HONG KONG REGENT AND THE HONG KONG HYATT HOTELS HIS HOTEL HOLDINGS ALSO INCLUDE 46 RENAISSANCE HOTELS 9304010138 930401 WHO'S NEWS GENCORP INC GENCORP INC FAIRLAWN OHIO MG O'NEIL 71 YEARS OLD AND WILLIAM WALSH 72 RETIRED AS DIRECTORS OF THIS MAKER OF REINFORCED PLASTICS AND OTHER PRODUCTS REDUCING THE SIZE OF THE BOARD TO 10 MR O'NEIL IS A FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND SON OF GENCORP'S FOUNDER DR WALSH A PHYSICIAN IS VICE CHAIRMAN OF PROJECT HOPE THE COMPANY SAID IT HASN'T ANY CURRENT PLANS TO REPLACE THEM 9304010137 930401 LAW JUSTICES GIVE BREAK TO SOLDIERS FACED WITH FORECLOSURE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT GAVE A BOOST TO PEOPLE IN THE MILITARY WHO ARE THREATENED WITH FORECLOSURE BECAUSE OF FAILURE TO PAY TAXES A UNANIMOUS HIGH COURT SAID THAT SOLDIERS NEEDN'T DEMONSTRATE SOME TYPE OF HARDSHIP CAUSED BY THEIR MILITARY SERVICE TO TAKE ADVANTAGE OF A FEDERAL LAW THAT SOMETIMES ALLOWS THEM TO AVOID FORECLOSURE ON PROPERTY ON WHICH THEY OWE BACK TAXES THE TEXT OF THE FEDERAL LAW IS UNAMBIGUOUS UNEQUIVOCAL AND UNLIMITED ON THIS POINT JUSTICE JOHN PAUL STEVENS SAID IN HIS OPINION FOR THE HIGH COURT AND THE INTENT OF CONGRESS AS SHOWN BY LEGISLATIVE DEBATE AND HISTORY SUPPORTS THE SAME RESULT HE ADDED THE RULING REVERSED A DECISION BY MAINE'S TOP COURT WHICH HAD RULED AGAINST A CAREER ARMY OFFICER WHO TRIED TO GET SOME REAL ESTATE BACK AFTER MUNICIPAL AUTHORITIES TOOK IT AWAY AND SOLD IT SEPARATELY THE JUSTICES ENGAGED IN A LIVELY EXCHANGE WITH LAWYERS ARGUING WHETHER THE HIGH COURT SHOULD SET TOUGHER LIMITS ON PUNITIVE DAMAGES AWARDED IN CIVIL LAWSUITS ALTHOUGH SOME MEMBERS OF THE COURT BELIEVE PUNITIVE DAMAGES HAVE RUN WILD THEY HAVE STRUGGLED TO COME UP WITH COHERENT GUIDELINES FOR JURIES AND LOWERCOURT JUDGES PUNITIVE DAMAGES ARE AWARDED TO DETER AND PUNISH A DEFENDANT'S BAD CONDUCT IN CONTRAST TO COMPENSATORY DAMAGES WHICH REIMBURSE A PLAINTIFF'S LOSSES CARTER PHILLIPS THE LAWYER FOR A TEXAS ENERGY FIRM ARGUED THAT A WEST VIRGINIA JURY THAT HIT HIS CLIENT WITH A 10 MILLION PUNITIVE AWARD WAS MOVED BY PASSION AND PREJUDICE HE URGED THE HIGH COURT AT A MINIMUM TO STATE CLEARLY THAT SUCH AWARDS ARE UNCONSTITUTIONAL BUT WHEN JUSTICE SANDRA DAY O'CONNOR A STRONG CRITIC OF PUNITIVE DAMAGES PRESSED MR PHILLIPS TO PROPOSE A BROAD RULE HIS SUGGESTIONS DIDN'T SEEM TO SATISFY HER ARGUING FOR THE WEST VIRGINIA VERDICT HARVARD LAW SCHOOL PROF LAURENCE TRIBE ENCOUNTERED SKEPTICISM FROM THE BENCH HE CONTENDED THAT THE 10 MILLION AWARD CORRESPONDED TO THE UNLAWFUL PROFITS THAT THE ENERGY COMPANY SOUGHT TO GAIN FROM MANIPULATION OF MINERALRIGHTS DOCUMENTS JUSTICE ANTHONY KENNEDY CALLED MR TRIBE'S CALCULATIONS HIGHLY EXAGGERATED MR TRIBE APPEARED TO RECOVER SOMEWHAT WHEN HE ASSERTED THAT THE HIGH COURT GENERALLY SHOULD DEFER TO THE JUDGMENT OF STATE LEGISLATURES AND JUDICIAL SYSTEMS TO SET LIMITS ON PUNITIVE DAMAGES TXO PRODUCTION CORP VS ALLIANCE RESOURCES CORP 9304010136 930401 INTERNATIONAL SOUTH AFRICA LIMPS TO DEMOCRACY HINDERED BY INTOLERANCE VIOLENCE BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL JOHANNESBURG SOUTH AFRICA A RAILTHIN BLACK MAN STRIDES CONFIDENTLY TO THE PODIUM OF A PUBLIC MEETING TO ADDRESS THE QUESTION ON EVERYONE'S MIND IS SOUTH AFRICA READY FOR FREE AND FAIR ELECTIONS NO HE SHOUTS WHAT THE CLIMATE SHOWS IS THAT SOUTH AFRICA IS READY FOR MORE DEATH AND VIOLENCE HOURS LATER THIS DARK PREDICTION OF ARDEN BOSMAN A SUPPORTER OF THE AZANIAN PEOPLE'S LIBERATION ORGANIZATION OR APLA THE ARMED WING OF THE PAN AFRICANIST CONGRESS COMES TRUE THREE WHITE MOTORISTS ARE AMBUSHED BY BLACK GUNMEN ON A HIGHWAY SOUTH OF JOHANNESBURG AND KILLED IN A HAIL OF BULLETS BLAMING APLA WHITE RIGHTWINGERS BLOCK THE ROAD IN PROTEST THREATENING MASSIVE REVENGE ATTACKS ON BLACKS ONE WHITE CHILD ONE BLACK TOWNSHIP THEY CHANT AND SO SOUTH AFRICA'S TORTUROUS ODYSSEY FROM APARTHEID TO DEMOCRACY CONTINUES WE HAVE INHERITED A SOCIETY SIGHS AZIZ PAHAD OF THE AFRICAN NATIONAL CONGRESS WHERE POLITICAL TOLERANCE IS SOMETHING WE HAVE TO WORK VERY HARD AT THAT WORK RESUMES TODAY AS MORE THAN 20 POLITICAL GROUPS INCLUDING THOSE REPRESENTING APLA AND THE WHITE RIGHT RECONVENE TALKS ON WRITING A POSTAPARTHEID CONSTITUTION AND SCHEDULING THE COUNTRY'S FIRST DEMOCRATIC ELECTION BUT THE VIOLENCE THAT HAS RESULTED IN THOUSANDS OF DEATHS SINCE ANC LEADER NELSON MANDELA WAS RELEASED FROM PRISON IN FEBRUARY 1990 WHEN THE NEW SOUTH AFRICA DAWNED SHROUDS THE CONFERENCE TABLE RANGING FROM TRIBAL FIGHTING OVER POLITICAL TURF TO RANDOM KILLINGS AT RESTAURANT SALAD BARS THE VIOLENCE HAS COMPLICATED AND AT TIMES DERAILED THE TALKS THE SPIRALING DEATH TOLL COUPLED WITH A RUINOUS ECONOMY GIVES URGENCY TO THE NEGOTIATIONS WE ARE SITTING ON A POWDER KEG ABOUT TO EXPLODE UNLESS WE MOVE AS QUICKLY AS POSSIBLE ON NEGOTIATIONS SAYS MR PAHAD ONE OF THE LEADERS OF THE ANC WHICH TEMPORARILY PULLED OUT OF THE TALKS LAST YEAR AFTER DOZENS OF ITS SUPPORTERS WERE MURDERED IN A NIGHT OF CARNAGE BOTH THE ANC AND THE GOVERNMENT OF PRESIDENT FW DE KLERK ARE PUSHING FOR ALLRACE ELECTIONS TO BE HELD EARLY NEXT YEAR ONCE BITTER FOES IN THE STRUGGLE OVER APARTHEID THEY ARE NOW UNITED IN WANTING ELECTIONS SCHEDULED AND A GOVERNMENT OF NATIONAL UNITY INSTALLED BEFORE COUNTERREVOLUTIONARIES CAN UNDERMINE THESE MOVES WHILE MR DE KLERK TELLS SOUTH AFRICANS THAT THEIR COUNTRY IS FACING ITS MOMENT OF TRUTH ANC NEGOTIATOR JOE SLOVO WARNS ALLIES IN THE ANCLED PATRIOTIC FRONT THAT TIME IS RUNNING OUT THUS THE NEGOTIATING FORUM HAS GOT TO RESOLVE FUNDAMENTAL ISSUES BY THE END OF APRIL OR THE MIDDLE OF MAY DESPITE SIGNIFICANT PROGRESS SOME ISSUES CONTINUE TO BITTERLY DIVIDE THE NEGOTIATORS THE GOVERNMENT REMAINS RELUCTANT TO INTEGRATE THE ANC'S ARMED WING UMKHONTO WE SIZWE INTO THE NATIONAL DEFENSE FORCE A KEY DEMAND OF THE ANC AND THE PARTIES ALL HAVE THEIR OWN IDEAS ABOUT HOW TO SHAPE THE CONSTITUTION FROM ANC'S CALLS FOR A POWERFUL CENTRAL GOVERNMENT TO DEMANDS FROM THE ZULUDOMINATED INKATHA FREEDOM PARTY FOR STRONG REGIONAL AUTONOMY AND THE CONSERVATIVE PARTY'S VISION OF A WHITE SELFRULED HOMELAND TO THE INSISTENCE OF THE PAN AFRICANIST CONGRESS ON AN AFRICAN BLACK GOVERNMENT BY THE AFRICANS FOR THE AFRICANS ALSO THE NEGOTIATORS HAVE TO MANAGE THE REINCORPORATION OF SOUTH AFRICA'S NOMINALLY INDEPENDENT BLACK HOMELANDS THE CORRUPT CREATIONS OF APARTHEID THAT HAVE NURTURED A GROUP OF POWERHUNGRY POLITICIANS STILL MOST OF THE MAJOR PARTIES ARE SO CONFIDENT THAT THESE PROBLEMS WILL BE RESOLVED THAT THEY HAVE ALREADY BEGUN THEIR ELECTION CAMPAIGNS AND IT IS THERE IN THE SCRAMBLE FOR VOTES AMIDST DAILY VIOLENCE THAT DEMOCRACY FACES ITS STIFFEST TEST OUR COMMUNITIES ARE CAPTIVES OF THE FEAR OF OPPOSING CERTAIN POLITICAL ORGANIZATIONS SAYS THEMBA KHOZA A LEADER OF THE INKATHA FREEDOM PARTY WHICH IS LOCKED IN A BLOODY BATTLE WITH ANC SUPPORTERS IN NATAL PROVINCE SO THERE CAN BE NO FREEDOM OF MOVEMENT AND EXPRESSION SAYS MR PAHAD THE PURPOSE OF VIOLENCE IS TO TERRORIZE OUR PEOPLE TO BE ANTIPOLITICS AND IT HAS SUCCEEDED THE VIOLENCE THAT HAS LONG TERRORIZED BLACK TOWNSHIPS SPARKED BY POLITICAL RIVALRIES AND OFTEN FANNED BY GOVERNMENT SUBVERSIVES IS SPREADING INTO WHITE AREAS IN FACT STREET CRIME AND CAR HIJACKINGS IN SOME PARTS OF JOHANNESBURG AS WELL AS ATTACKS ON FARMS ARE BECOMING ROUTINE LAST YEAR ABOUT 20000 SOUTH AFRICANS WERE MURDERED THUS SOUTH AFRICA WOBBLES TOWARD DEMOCRACY DAN MOFOKENG AN OFFICIAL OF A BLACK CIVIC ASSOCIATION SAYS OLD APARTHEIDBRED ATTITUDES NOW REINFORCED BY VIOLENCE WILL MAKE TRADITIONAL DOORTODOOR CAMPAIGNING IMPOSSIBLE WHITE POLITICIANS HE SUGGESTS WILL LIKELY BE CHASED OUT OF BLACK TOWNSHIPS EVEN MR MOFOKENG'S PRESENCE IN MAINLY WHITE AREAS WILL PROMPT HOMEOWNERS TO PRESS THEIR SECURITY ALARMS HE SUSPECTS WHEN I GO TO SANDTON A WEALTHY PREDOMINANTLY WHITE AREA OF JOHANNESBURG HE LAUGHS SADLY PEOPLE WILL THINK I'VE COME TO STEAL SOMETHING IS SOUTH AFRICA READY FOR FREE AND FAIR ELECTIONS NOT YET ARGUES MR MOFOKENG FOLLOWING MR BOSMAN TO THE PODIUM NOT UNTIL HE SAYS A BLACK PERSON CAN TAKE A WHITE PERSON'S OPINION WITHOUT BEING SUSPECTED OF TAKING HIS TELEVISION AS WELL 9304010135 930401 FED PROPOSES STRICTER CAPITAL RULES FOR BANKS NEW STANDARDS INCORPORATE WIDER RANGE OF RISKS SUCH AS SHIFTING RATES BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE BOARD PUSHING TOWARD THE NEXT REGULATORY FRONTIER PROPOSED CAPITAL STANDARDS FOR BANKS FACING UNUSUAL RISK FROM INTEREST RATE SWINGS LOAN CONCENTRATION AND NEW ACTIVITIES BANKS AND THRIFTS CURRENTLY MUST HOLD CAPITAL KEYED TO CREDIT RISK THE POSSIBILITY THAT A BORROWER WILL DEFAULT ON A LOAN BUT A 1991 BANKING LAW REQUIRES REGULATORS TO REWRITE CAPITAL STANDARDS TO COVER A BROADER RANGE OF RISKS THE NEW REGULATIONS MUST BE IN PLACE BY JUNE 19 AFTER SEVERAL YEARS OF FINANCIAL STRAIN THE BANKING INDUSTRY IS HEALTHY LAST YEAR IT EARNED RECORD PROFITS FROM UNUSUALLY FAVORABLE INTEREST RATE MARGINS IN ADDITION CAPITAL IS HIGH BUT SOME REGULATORS WORRY THAT BANKS MAY BE TEMPTED TO TAKE POTENTIALLY BAD RISKS TO PROTECT HIGH PROFITS AS INTEREST RATE MARGINS SHRINK EUGENE LUDWIG PRESIDENT CLINTON'S NOMINEE TO BECOME COMPTROLLER OF THE CURRENCY TOLD THE SENATE BANKING COMMITTEE THAT TODAY'S BANKING SYSTEM IS HIGHLY LIQUID WITH LARGE AMOUNTS OF LOWCOST DEPOSITS INVESTED IN HIGHER YIELDING GOVERNMENT SECURITIES THE THING THAT HAS GRABBED MY ATTENTION THE MOST IS WHAT DOES ONE DO WITH THE LIQUIDITY IN THE SYSTEM AS THE GENEROUS INTEREST RATE SPREADS SHRINK AND BANKS BEGIN SCRAMBLING TO MAKE HIGHYIELDING LOANS HE SAID DURING HIS CONFIRMATION HEARING MR LUDWIG SAID HE WILL FOCUS MORE OF THE AGENCY'S EFFORTS TOWARD IDENTIFYING BEHAVIORS AND PRODUCTS THAT POSE SERIOUS RISK TO THE BANKING INDUSTRY IN RESPONSE TO COMPLAINTS THAT MANY BUSINESSES FACE DIFFICULTIES IN GETTING BANK LOANS MR LUDWIG MADE IT CLEAR THAT HE BELIEVES BANK EXAMINATIONS SHOULD BE ABLE TO PROTECT THE INSTITUTION'S SAFETY AND SOUNDNESS WITHOUT DISCOURAGING IT FROM MAKING GOOD LOANS THE EXAMINATION PROCESS CAN BE IMPROVED BY LOOKING AT INSTITUTIONS WITH AN EYE TO WHAT IS LIKELY TO HAPPEN IN THE FUTURE INSTEAD OF FOCUSING QUITE AS MUCH ON THE PAST HE SAID HE ADDED THAT BANK EXAMINERS SHOULD BE PROMOTED ON THE BASIS OF THEIR JUDGMENT RATHER THAN THEIR TOUGHNESS ON BANKS AS COMPTROLLER MR LUDWIG A WASHINGTON LAWYER WHO WENT TO OXFORD UNIVERSITY AND YALE LAW SCHOOL WITH MR CLINTON WILL SUPERVISE 3600 NATIONAL BANKS AND TAKE A LEADING ROLE IN FORMULATING THE ADMINISTRATION'S POLICIES TOWARD FINANCIAL INSTITUTIONS HE GAVE FEW HINTS ABOUT HIS VIEWS ON COMPETITIVE ISSUES SUCH AS WHETHER BANKS SHOULD BE GIVEN GREATER POWERS TO DEAL IN SECURITIES OR SELL INSURANCE BUT HE DID SUGGEST THAT ALLOWING BANKS TO OPERATE NATIONWIDE BRANCH NETWORKS COULD INCREASE FINANCIAL EFFICIENCY THE FED IS WORKING WITH THE COMPTROLLER AND THE FEDERAL DEPOSIT INSURANCE CORP TO DRAFT UNIFORM RULES DESIGNED TO ADD NEW RISK ASSESSMENT REQUIREMENTS TO EXISTING CAPITAL STANDARDS WHEN THE RULES ARE IN PLACE THEY WILL HAVE A PROPORTIONATELY LARGER IMPACT ON SMALL AND MEDIUMSIZED BANKS THAN ON LARGE BANKS FED OFFICIALS SAID THIS IS BECAUSE MOST LARGE BANKS ALREADY HAVE FAIRLY SOPHISTICATED RISK ASSESSMENT TECHNIQUES THE FED PROPOSED TWO ALTERNATIVES FOR DEALING WITH INTEREST RATE RISK IT DEFINED THIS RISK AS THE CHANGE IN THE NET ECONOMIC VALUE OF A BANK FOR A ONE PERCENTAGE POINT TWO PERCENTAGE POINT OR OTHER SPECIFIED SHIFT IN MARKET INTEREST RATES THE FIRST METHOD WOULD REDUCE EXISTING CAPITAL BY A SET AMOUNT FOR EACH UNIT OF RISK EXPOSURE ABOVE A CERTAIN LEVEL THE SECOND METHOD WOULDN'T SET A SPECIFIC CAPITAL CHARGE BUT WOULD GIVE EXAMINERS THE FLEXIBILITY TO ASSESS INTEREST RATE RISK THE NEW SYSTEM WOULD APPLY ONLY TO INSTITUTIONS WITH A HIGH RISK PROFILE AS A RESULT MANY BANKS PERHAPS AS MANY AS 7500 OUT OF 12000 WOULD BE EXEMPT MOST OF THESE WOULD BE SMALL BANKS ALL OTHERS WOULD HAVE TO MEET NEW INTEREST RATE RULES BUT ALMOST ALL OF THE NATION'S LARGE BANKS WHICH GENERALLY HAVE THEIR OWN INTEREST RATE RISK MEASUREMENT SYSTEMS WOULD BE ALLOWED TO USE THEIR OWN MODELS THE FED ASKED FOR PUBLIC COMMENT WITHIN 45 DAYS ON THIS PROPOSAL WHICH AMENDS A PRELIMINARY INTEREST RATE RISK PROPOSAL ISSUED LAST YEAR THE FEDERAL RESERVE BOARD DIDN'T PROPOSE EXPLICIT FORMULAS FOR CALCULATING THE RISK OF CONCENTRATING LOANS IN ONE INDUSTRY SUCH AS REAL ESTATE OR IN ONE GEOGRAPHICAL AREA NOR DID IT PROPOSE A FORMULA FOR CALCULATING THE RISK OF ENTERING NONTRADITIONAL ACTIVITIES SUCH AS COMMODITYBASED TRANSACTIONS AND SOPHISTICATED CURRENCY AND INTEREST RATE HEDGES INSTEAD IT PROPOSED TO AMEND EXISTING CAPITAL RULES TO MAKE A BANK'S ABILITY TO MANAGE SUCH RISKS A FACTOR IN DETERMINING CAPITAL ADEQUACY THE FED ASKED FOR COMMENT WITHIN 30 DAYS ON THIS SPECIFIC PROPOSAL 9304010134 930401 FINANCING BUSINESS OHIO EDISON CO OHIO EDISON CO AKRON OHIO SAID IT WILL OFFER FOUR MILLION SHARES OF 7 3/4 CLASS A PREFERRED STOCK AT 25 A SHARE PROCEEDS FROM THE SALE WHICH WILL BE LED BY MORGAN STANLEY & CO WILL BE USED BY THE UTILITY TO REDEEM 904 MILLION OF PREFERRED AND PREFERENCE STOCK 9304010133 930401 WHO'S NEWS LORAL CORP LORAL CORP NEW YORK RETIRED AIR FORCE GENERAL JIMMIE V ADAMS WAS APPOINTED VICE PRESIDENT OF THE COMPANY'S WASHINGTON OPERATIONS HE SUCCEEDS LT GEN GEORGE L MONAHAN JR WHO DIED IN FEBRUARY GEN ADAMS 56 YEARS OLD WAS COMMANDER IN CHIEF OF PACIFIC AIR FORCES HICKAM AIR FORCE BASE HAWAII UNTIL HIS RETIREMENT EARLIER THIS YEAR LORAL IS A HIGHTECHNOLOGY COMPANY THAT CONCENTRATES IN DEFENSE ELECTRONICS COMMUNICATIONS AND SPACE 9304010132 930401 TISSUE TYPING IN KIDNEY TRANSPLANTS IS SAID TO HURT BLACK PATIENTS' CHANCES BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL STATISTICALLY BLACKS ARE MORE LIKELY TO SUFFER FROM KIDNEY DISEASE THAN WHITES UNFORTUNATELY THEY ARE LESS LIKELY THAN WHITES TO RECEIVE A KIDNEY TRANSPLANT THE REASONS FOR THIS LIE IN THE GENETICALLY BASED TISSUEMATCHING SYSTEM USED TO ALLOCATE KIDNEYS HARVESTED FROM CADAVERS PROPONENTS SAY THIS SYSTEM PROVIDES THE BEST CHANCE FOR SUCCESSFUL TRANSPLANTS BUT A GROWING NUMBER OF SCIENTISTS ARGUE THAT TISSUE TYPING HAS PROVED TO BE MEDICALLY INSIGNIFICANT IN MOST CASES AS WELL AS RACIALLY DISCRIMINATORY IN A PAPER TO BE PUBLISHED IN THE MEDICAL JOURNAL CLINICAL TRANSPLANTATION NICHOLAS HALASZ OF THE UNIVERSITY OF CALIFORNIA SAN DIEGO CALLS FOR A REWORKING OF THE COMPUTERDRIVEN POINT SYSTEM HE ADVOCATES INSTEAD A SYSTEM BASED ON WHO HAS BEEN WAITING LONGEST HE HAS ATTRACTED SOME POWERFUL ALLIES INCLUDING TRANSPLANT PIONEERS THOMAS STARZL OF THE UNIVERSITY OF PITTSBURGH AND JOHN NAJARIAN OF THE UNIVERSITY OF MINNESOTA WE FEEL IT'S UNDULY PREJUDICIAL DR NAJARIAN SAYS OF THE CURRENT SYSTEM UNDER THE CURRENT SYSTEM A DONATED KIDNEY IS TESTED FOR SIX TYPES OF ANTIGENS SUBSTANCES THAT CAN STIMULATE AN IMMUNE RESPONSE THE MORE ANTIGENS THAT MATCH ANTIGENS IN THE RECIPIENT THE LESS LIKELY THE PATIENT IS TO REJECT IT THE MEDICAL COMMUNITY MAINTAINS WHERE CONROVERSY ERUPTS IS IN LESSTHANPERFECT MATCHES KNOWN AS HLA MATCHES IN THE POINT SYSTEM THOSE WHO MATCH FIVE OF THE ANTIGENS HAVE THE BEST CHANCE OF GETTING A KIDNEY FOLLOWED BY FOUR MATCHES AND ON DOWN THOUGH LENGTH OF WAIT COUNTS VERY MINOR COMPATIBILITIES WEIGH MORE HEAVILY THAN TWO OR THREE YEARS WAITING TIME DR HALASZ SAYS BUT STUDIES OF HLAS HAVEN'T SHOWN THAT THEY PROVIDE A STATISTICALLY GREATER CHANCE OF SUCCESS THAN TRANSPLANTS OF KIDNEYS WITHOUT ANTIGEN MATCHES THE CRITICS SAY DOCTORS SUGGEST THAT THE NECESSARY SUPPRESSION OF THE BODY'S IMMUNE SYSTEM WITH DRUGS AFTER THE TRANSPLANT LEVELS THE PLAYING FIELD TISSUE TYPING DOESN'T MEAN ANYTHING AND IT IS COSTING A TREMENDOUS AMOUNT DR STARZL ASSERTS BLACK KIDNEY PATIENTS SHARE VERY FEW OF THE SIX ANTIGENS WITH THE WHITE POPULATION WHICH IS WHY THEY NOW MAKE UP ONETHIRD OF THE NATION'S KIDNEYTRANSPLANT WAITING LIST BLACKS ALSO DONATE ORGANS AT A LOWER RATE THAN WHITES NOW SOME BLACK RESEARCHERS CONTEND THAT OTHER ANTIGENS BEYOND THE SIX HAVE BEEN IDENTIFIED AND ARE IGNORED WHAT IS MORE WITHIN THE CURRENT SIXANTIGEN SYSTEM TYPES FOUND IN BLACKS STILL HAVEN'T BEEN CHARACTERIZED RESULTING IN BLANKS ON THE MATCHING SCORECARD AND MAKING A PERFECT MATCH IMPOSSIBLE A FEDERALLY FUNDED PROGRAM TO IDENTIFY ANTIGENS IN BLACKS IS UNDER WAY IT'S A NUMBERS GAME SAYS GEORGIA DUNSTON OF HOWARD UNIVERSITY IN WASHINGTON ONE OF THE DOCTORS WORKING ON THE BLACKANTIGENS STUDY IT'S NOT SO MUCH A BLACKWHITE ISSUE AS A GENETIC ISSUE IF YOU'RE A MINORITY YOUR CHANCES OF A MATCH ARE LESS ON THE NUMBERS IF YOU HAVE AN ANTIGEN NOT COMMON TO THE WHITE POPULATION CRITICS ALSO POINT TO THE LACK OF BLACKS ON THE 45MEMBER BOARD OF THE UNITED NETWORK FOR ORGAN SHARING THE NONPROFIT GROUP THAT RUNS ALLOCATION PROGRAMS FOR THE FEDERAL GOVERNMENT LAST JUNE UNOS ELECTED ITS FIRST BLACK DIRECTOR AT A MEDICAL CONFERENCE IN ARLINGTON VA YESTERDAY ON BLACKS AND KIDNEY TRANSPLANTATION DR STARZL OFFERED ANOTHER THEORY ON WHY HE BELIEVES TISSUE TYPING DOESN'T WORK HIS LATEST RESEARCH SHOWS GENETIC MATERIAL FROM DONORS MIGRATES INTO CELLS OF RECIPIENTS OVERPOWERING THE ANTICIPATED TYPING EFFECT DESPITE CALCULATIONS THAT THEIR TISSUETYPING TECHNIQUES DON'T PRODUCE SIGNIFICANTLY BETTER RESULTS PROPONENTS OF THE CURRENT SYSTEM DEFEND THEIR RESULTS AS BETTER THAN NONMATCHES IT TURNS OUT IT REALLY IS ONE OF THE STRONGEST FACTORS CLAIMS TISSUETYPING PIONEER PAUL TERASAKI OF UCLA DR TERASAKI SAYS THE CURRENT SYSTEM OFFERS A COMPROMISE BETWEEN TRYING TO FIND THE BEST MATCH AND OFFERING SOME AID TO THOSE WHO WAIT LONG PERIODS THE SOLUTION IS TO INCREASE BLACK DONORS NOT TAKE AWAY FROM GOOD MATCHES AND PREVENT CAUCASIANS FROM GETTING KIDNEYS HE SAYS 9304010131 930401 ECONOMY US CRITICIZES MAJOR TRADING PARTNERS OVER BARRIERS BUT LANGUAGE IS MUTED BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION CHARGED ITS MAJOR TRADING PARTNERS AND JAPAN IN PARTICULAR WITH ERECTING UNFAIR TRADE BARRIERS BUT TEMPERED THE CRITICISM WITH FAIRLY GENTLE LANGUAGE THE CRITIQUE WAS PART OF A CONGRESSIONALLY MANDATED REPORT IN WHICH US TRADE REPRESENTATIVE MICKEY KANTOR ACCUSED 44 COUNTRIES OF EMPLOYING UNFAIR TRADE PRACTICES IF THE PROBLEMS AREN'T REMEDIED IN NEGOTIATIONS MR KANTOR CAN FOLLOW THROUGH WITH TRADE SANCTIONS THE 275PAGE ANNUAL REPORT COMES AT AN IMPORTANT TIME EARLY IN THE CLINTON TERM AS THE ADMINISTRATION GRAPPLES WITH FORMING TRADE POLICY SO FAR MOST TRADE PRACTITIONERS CALL THE CLINTON TRADE POLICY CONFUSING FOR EXAMPLE THE ADMINISTRATION HAS ATTACKED THE PRACTICES OF JAPAN AND THE EUROPEAN COMMUNITY AT TIMES WHILE BEING MORE CONCILIATORY AT OTHER TIMES IN RELEASING THE EIGHTH ANNUAL REPORT THE ADMINISTRATION AGAIN DISPLAYED THAT AMBIVALENCE IN DISCUSSING JAPAN THE STRONGEST LANGUAGE USED AT A NEWS BRIEFING YESTERDAY BY IRA SHAPIRO GENERAL COUNSEL AT THE OFFICE OF THE US TRADE REPRESENTATIVE WAS THAT THE ADMINISTRATION REMAINED CONCERNED ABOUT ALLEGED JAPANESE TRADE BARRIERS AT ONE POINT MR SHAPIRO EVEN DISSUADED REPORTERS FROM PAYING TOO MUCH ATTENTION TO THE REPORT'S CRITIQUE OF JAPAN SAYING IT DIDN'T MEAN MUCH THAT THE SECTION ON JAPAN HAD JUMPED TO 28 PAGES FROM 19 PAGES LAST YEAR IN CONTRAST PRESIDENT CLINTON AT HIS FIRST FORMAL NEWS CONFERENCE LAST WEEK BLASTED JAPAN FOR ITS PERSISTENT TRADE SURPLUSES WITH THE US LEADING SOME TRADE OBSERVERS TO THINK THE ADMINISTRATION WILL BE INTENSIFYING ITS RHETORIC AND TRADE POLICIES AGAINST JAPAN DESPITE THE SOFTER TONE MR SHAPIRO YESTERDAY TARGETED JAPAN'S GOVERNMENTPROCUREMENT SYSTEM AS AN ISSUE OF CONCERN TO US TRADE NEGOTIATORS THE US AND JAPAN HAVE SIGNED FOUR BILATERAL PACTS ON THE ISSUE OF GOVERNMENT PROCUREMENT ONE AS LATE AS LAST YEAR BUT US COMPANIES STILL CHARGE THE JAPANESE GOVERNMENT IS BIASED AGAINST PURCHASING FROM THEM THE REPORT HIGHLIGHTED PARTICULAR CONCERN FOR ALLEGED JAPANESE TRADE BARRIERS BLOCKING US COMPANIES FROM ENTERING THE JAPANESE SUPERCOMPUTER AND FINANCIALSERVICES INDUSTRIES AND IN THE CONTENTIOUS AREA OF AUTOMOBILE TRADE THE REPORT USED ITS TYPICALLY BLAND LANGUAGE TO SAY THAT INFORMAL BUSINESS RELATIONSHIPS BETWEEN JAPANESE AUTO MAKERS AND THEIR DOMESTIC DEALERS HAVE EFFECTIVELY DENIED US AUTOMOBILE MANUFACTURERS THE OPPORTUNITY TO MARKET THROUGH EXISTING DEALER OUTLETS SEIICHIRO NOBORU ECONOMIC MINISTER AT THE JAPANESE EMBASSY IN WASHINGTON DEFENDED JAPAN'S GOVERNMENTPROCUREMENT RECORD ARGUING THAT THE JAPANESE RATE OF PURCHASE FROM FOREIGN SOURCES IS HIGHER THAN THE US HE SAID JAPAN ALSO BUYS A HIGHER RATIO OF US SUPERCOMPUTERS THAN THE US BUYS OF JAPANESE SUPERCOMPUTERS AND THAT US AUTO SALES ARE DICTATED BY JAPANESE CONSUMER CHOICES NOT TRADE BARRIERS DESPITE THE CRITICISM MR NOBORU SAID THE RHETORIC IS NOT AS BAD AS LAST YEAR WHEN THENPRESIDENT BUSH SHEPHERDED A TEAM OF AUTO EXECUTIVES TO JAPAN THE CLINTON ADMINISTRATION ALSO CRITICIZED EC GOVERNMENTPROCUREMENT PRACTICES PARTICULARLY FOR TELECOMMUNICATIONS THE ISSUE BECAME A HOT ONE IN FEBRUARY WHEN THE US THREATENED THE EC WITH RETALIATORY MEASURES UNLESS IT CHANGED ITS GOVERNMENTPROCUREMENT PRACTICES THE US HAS SINCE BACKED OFF TO LET A RECENT SPURT OF NEGOTIATIONS RUN THEIR COURSE THE EC IS EXPECTED TO RESPOND TO THE US COMPLAINTS SOON IN ITS OWN ANNUAL REVIEW OF US TRADE BARRIERS WITH THE EC TOO THE ADMINISTRATION YESTERDAY ADOPTED A MORE CONCILIATORY TONE THAN IT HAS USED IN THE PAST MR SHAPIRO SAID TRADE REPRESENTATIVE KANTOR HAS BEEN MAKING HEADWAY IN TRADE TALKS THIS WEEK WITH EUROPEAN LEADERS INDEED AT A NEWS CONFERENCE IN LONDON MR KANTOR WARNED THAT THERE IS TOO MUCH HYSTERIA OVER A CURRENT ROUND OF GLOBAL TRADE TALKS HE SAID THE RISK OF A TRADE WAR'S ERUPTING IS REMOTE IF NOT IMPOSSIBLE NO ONE IS LOOKING FOR A TRADE WAR CERTAINLY NOT THE US SAID MR KANTOR WHO DID LITTLE TO DEFINE THE ADMINISTRATION'S TRADE POLICY CALLING IT PRACTICAL PRAGMATIC VISIONARY LOOKING AT THE WORLD AS IT IS NOT AS IT USED TO BE THE CLINTON ADMINISTRATION ALSO USED THE REPORT AS AN OPPORTUNITY TO TAKE SHOTS AT THE BUSH ADMINISTRATION'S TRADE POLICIES MR SHAPIRO SAID THERE WERE TRADE BATTLES IN WHICH BUSH ADMINISTRATION OFFICIALS COULD HAVE BEEN MORE SUCCESSFUL HE DIDN'T ELABORATE BUT LATER ADDED THE PREVIOUS ADMINISTRATION SHORTSHRIFTED CERTAIN BILATERAL ISSUES IN AN EFFORT TO WRAP UP THE MULTILATERAL TRADE TALKS STILL THE ROSTER OF 44 COUNTRIES HIGHLIGHTED BY MR KANTOR AS TROUBLE AREAS IS JUST SLIGHTLY LARGER THAN THE LIST ASSEMBLED BY HIS PREDECESSOR CARLA HILLS WHO LAST YEAR INCREASED THE NUMBER TO 43 FROM 36 IN 1991 SOUTH AFRICA IS THE NEW ENTRANT AS MORE US COMPANIES DO BUSINESS THERE CHINA WAS CRITICIZED FOR A UNIQUE TRADE BARRIER SMUGGLING THE REPORT CHARGED THAT US COMPANIES ARE DISSUADED FROM EXPORTING TO CHINA BECAUSE SMUGGLED GOODS ROB THEM OF SALES JANET GUYON IN LONDON CONTRIBUTED TO THIS ARTICLE 9304010130 930401 WHO'S NEWS KINGFISHER PLC KINGFISHER PLC LONDON ALAN SMITH WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS BRITISH RETAILING CONCERN THE APPOINTMENT SPLITS THE ROLES OF CHAIRMAN AND CHIEF EXECUTIVE WHICH UNTIL NOW HAD BEEN HELD BY GEOFFREY MULCAHY MR SMITH WHO LEAVES RETAILER MARKS & SPENCER PLC AS ITS DIRECTOR IN CHARGE OF STORE OPERATIONS WILL RUN KINGFISHER'S RETAIL OPERATIONS IN THE UNITED KINGDOM HE WILL REPORT TO MR MULCAHY 9304010129 930401 WHO'S NEWS ADVANCED POLYMER SYSTEMS INC ADVANCED POLYMER SYSTEMS INC REDWOOD CITY CALIF JOHN J MEAKEM JR 56 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS ELECTED TO THE ADDITIONAL POST OF CHAIRMAN AT THIS BIOTECH COMPANY HE SUCCEEDS JOHN H WILLIFORD WHO DIED IN MARCH 9304010128 930401 WHO'S NEWS RYDER SYSTEM INC RYDER SYSTEM INC MIAMI DAVID T KEARNS WAS NOMINATED TO THE BOARD OF THIS TRANSPORTATION SERVICES CONCERN MR KEARNS 62 YEARS OLD WAS FORMERLY A MEMBER OF THE BOARD AND MOST RECENTLY WAS DEPUTY SECRETARY OF THE US DEPARTMENT OF EDUCATION CHARLES L BROWN RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN TELEPHONE & TELEGRAPH CO AND GORMAN S DONEGAN RETIRED SENIOR VICE PRESIDENT RIGGS NATIONAL BANK OF WASHINGTON DC WILL RETIRE FROM THE BOARD EFFECTIVE MAY 7 PAUL J RIZZO WHO RETURNED TO INTERNATIONAL BUSINESS MACHINES CORP AS VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER WON'T STAND FOR REELECTION 9304010127 930401 WHAT'S NEWS WORLDWIDE THE SECURITY COUNCIL VOTED TO ENFORCE A NOFLY ZONE OVER BOSNIA THE UN COUNCIL INCREASED PRESSURE ON BOSNIA'S SERBS BY AUTHORIZING NATO WARPLANES TO SHOOT DOWN AIRCRAFT VIOLATING A FIVEMONTHOLD FLIGHT BAN BUT THE COUNCIL AGREED TO RUSSIAN DEMANDS AND RULED OUT THE PREEMPTIVE BOMBING OF SERB AIRFIELDS TO ENFORCE THE BAN THE VOTE ON THE MUCHDELAYED RESOLUTION WAS 140 WITH CHINA ABSTAINING COUNCIL MEMBERS ARE SEEKING TO PERSUADE THE SERBS TO SIGN A PEACE ACCORD THAT BOSNIA'S CROATS AND MUSLIM GOVERNMENT HAVE ACCEPTED IT WAS THE FIRST TIME THE COUNCIL HAS AUTHORIZED ARMED INTERVENTION IN BOSNIA WHERE SMALL PLANES RECENTLY ATTACKED MUSLIM VILLAGES ANOTHER SUSPECT EMERGED IN CONNECTION WITH THE BOMBING OF NEW YORK'S WORLD TRADE CENTER A WARRANT WAS ISSUED FOR THE ARREST OF RAMZI AHMED YOUSEF WHOSE NAME WAS INCLUDED IN AN INDICTMENT THAT ALSO LISTS THREE MEN PREVIOUSLY CHARGED IN THE FEB 26 EXPLOSION THAT KILLED SIX PEOPLE NO NEW FUNDING WILL BE REQUIRED FOR A 1 BILLIONPLUS RUSSIAN AID PACKAGE THAT PRESIDENT CLINTON WILL UNVEIL IN VANCOUVER THIS WEEKEND BUT WHEN GROUP OF SEVEN LEADERS LATER MEET IN TOKYO ON A BAILOUT PLAN RUSSIA THE US CONTRIBUTION COULD GO AS HIGH AS 2 BILLION AND WILL ALMOST CERTAINLY REQUIRE NEW AID LEGISLATION ISRAELI POLICE DETAINED AT LEAST 500 PALESTINIANS INSIDE ISRAEL FOR VIOLATING TOUGH SECURITY RESTRICTIONS IMPOSED TUESDAY TO STOP ARABISRAELI VIOLENCE PALESTINIANS WARNED THAT THE GOVERNMENT'S DECISION TO CLOSE OFF THE WEST BANK AND GAZA STRIP COULD SPARK MORE UNREST AND ENCOURAGE EXTREMISTS WHO OPPOSE MIDEAST PEACE TALKS A FORMER PENTAGON OFFICIAL ENDORSED CLINTON'S EFFORT TO LIFT THE MILITARY'S BAN ON HOMOSEXUALS THE TESTIMONY FROM LAWRENCE KORB ASSISTANT DEFENSE SECRETARY FOR MANPOWER DURING THE REAGAN ADMINISTRATION MARKED THE FIRST TIME A WITNESS BEFORE THE SENATE ARMED SERVICES COMMITTEE SPOKE OUT IN SUPPORT OF THE PRESIDENT'S PLAN JUSTICE BLACKMUN TEMPORARILY BLOCKED A RESTRICTIVE NORTH DAKOTA ABORTION LAW FROM TAKING EFFECT THE JUSTICE ORDERED STATE OFFICIALS TO POSTPONE ENFORCING THE LAW UNTIL THE FULL SUPREME COURT STUDIES AN EMERGENCY REQUEST BY OPERATORS OF NORTH DAKOTA'S ONLY ABORTION CLINIC THE LAW REQUIRES A 24HOUR WAITING PERIOD OVER 20 POLITICAL GROUPS WILL RECONVENE TALKS TODAY ON WRITING A POSTAPARTHEID CONSTITUTION FOR SOUTH AFRICA AND SCHEDULING THE COUNTRY'S FIRST DEMOCRATIC ELECTIONS BOTH THE AFRICAN NATIONAL CONGRESS AND THE DE KLERK GOVERNMENT ARE PUSHING FOR ALLRACE BALLOTING TO BE HELD BY EARLY NEXT YEAR NEW YORK STATE'S EXCHIEF JUDGE PLEADED GUILTY IN A NEW JERSEY COURT TO THREATENING TO KIDNAP HIS FORMER LOVER'S DAUGHTER AND ADMITTED HARASSING THEM FOR OVER A YEAR IN RETURN FOR SOL WACHTLER'S PLEA PROSECUTORS DROPPED A FIVECOUNT INDICTMENT AGAINST HIM HE FACES A MAXIMUM PENALTY OF FIVE YEARS IN PRISON AND A 250000 FINE CHINA TOOK THE FIRST STEP TOWARD REMAKING THE HONG KONG GOVERNMENT TO ITS LIKING BY 1997 AND POSSIBLY UNDOING SOME DEMOCRATIC REFORMS UNDERTAKEN BY THE BRITISH CHINA'S LEGISLATURE THE NATIONAL PEOPLE'S CONGRESS VOTED OVERWHELMINGLY TO SET UP A COMMITTEE THAT WILL BEGIN PREPARING FOR THE TERRITORY'S TRANSFER FROM BRITAIN AN ITALIAN COMMISSION IS EXAMINING A REPORT THAT CONFIRMS LINKS BETWEEN POLITICIANS AND THE SICILIAN MAFIA AND WARNS THAT ORGANIZED CRIME IS SEEKING NEW POLITICAL TIES THE REPORT FOLLOWS A NOTICE SERVED LAST WEEKEND TO FORMER PRIME MINISTER ANDREOTTI THAT HE IS UNDER INVESTIGATION FOR ALLEGED MAFIA LINKS A DEFENSE ATTORNEY RESTED HIS CASE IN THE RODNEY KING BEATING TRIAL WITHOUT CALLING HIS CLIENT LOS ANGELES POLICE OFFICER LAURENCE POWELL TO THE WITNESS STAND POWELL HAD TESTIFIED AT AN EARLIER STATE TRIAL IN WHICH HE AND THREE OTHER OFFICERS WERE DEFENDANTS HE HAD BEEN EXPECTED TO TAKE THE STAND IN THE CURRENT FEDERAL CASE TAJIKISTAN IMPOSED A STATE OF EMERGENCY IN A SOUTHERN PROVINCE KURGAN TYUBE AND DECLARED A DAY OF MOURNING FOR TWO COMMANDERS WHOSE DEATHS THREATENED TO REIGNITE A CIVIL WAR IN THE CENTRAL ASIAN STATE ALL PUBLIC GATHERINGS WERE BANNED 9304010126 930401 BRONFMAN EMPIRE RESTRUCTURING GETS POTENTIAL OBSTACLE BY MARK HEINZL AND SUZANNE MCGEE STAFF REPORTERS OF THE WALL STREET JOURNAL NORTH CANADIAN OILS LTD DIRECTORS RAISED A POTENTIAL OBSTACLE TO RESTRUCTURING EFFORTS OF THE CORPORATE EMPIRE CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN OF WHICH NORTH CANADIAN IS A PART THE OIL AND GAS CONCERN'S BOARD SAID IT IS REJECTING A MERGER PROPOSAL FROM NORCEN ENERGY RESOURCES LTD ANOTHER BRONFMANCONTROLLED COMPANY THE MOVE IS UNUSUAL FOR THE SOCALLED EDPER EMPIRE ITS CRITICS OFTEN HAVE CHARGED THAT INDEPENDENT DIRECTORS OF GROUP COMPANIES HAVE BEEN CLOSER TO THE MANAGEMENT THAN TO MINORITY SHAREHOLDERS NORTH CANADIAN DIRECTORS SAID THEY AREN'T SATISFIED WITH THE OFFER BY NORCEN TO ACQUIRE EACH NORTH CANADIAN SHARE HELD BY MINORITY HOLDERS FOR 067 OF A NORCEN SUBORDINATE VOTING SHARE THE OFFER IS PART OF A BROAD RESTRUCTURING BY THE EDPER GROUP'S RESOURCES DIVISION WHICH IS HEADED BY GIANT ENERGY AND FOREST PRODUCTS CONCERN NORANDA INC OTHER MOVES RECENTLY HAVE INCLUDED THE SALE OF THE GROUP'S 493 INTEREST IN MACMILLAN BLOEDEL LTD A FOREST PRODUCTS CONCERN FOR 971 MILLION CANADIAN DOLLARS US7756 MILLION NORCEN AGREED IN DECEMBER TO ACQUIRE FROM NORANDA AND A CLOSELY HELD ASSOCIATE DAAL ENERGY HOLDINGS INC A 505 STAKE IN NORTH CANADIAN AND TO EXTEND THAT OFFER TO NORTH CANADIAN'S MINORITY SHAREHOLDERS NORANDA HOLDS A 34 STAKE IN NORCEN ANOTHER OIL AND GAS CONCERN NORCEN HOLDERS ARE SET TO VOTE TODAY ON ISSUING SHARES TO NORANDA IN EXCHANGE FOR NORANDA'S STAKE IN NORTH CANADIAN THAT VOTE IS LOOKING FAVORABLE SAID NORCEN CHIEF FINANCIAL OFFICER PAUL PALMER MR PALMER SAID HE SEES NO REASON AT THIS STAGE TO CHANGE THE OFFER TO NORTH CANADIAN MINORITY SHAREHOLDERS THE UNUSUAL DECISION TO RECOMMEND REJECTION OF THE NORCEN OFFER WAS BASED ON THE FINDINGS OF A COMMITTEE OF INDEPENDENT DIRECTORS AND BURNS FRY LTD A TORONTO INVESTMENT DEALER WHICH SERVED AS A FINANCIAL ADVISER TO THE BOARD BURNS FRY PUT NORTH CANADIAN'S VALUE AT CLOSER TO 076 TO 080 OF ONE NORCEN SHARE FOR EACH NORTH CANADIAN SHARE HELD SOME ANALYSTS NOTE HOWEVER THAT NORCEN SHAREHOLDERS MAY NOT BE EAGER TO APPROVE THE ACQUISITION OF THE NORTH CANADIAN BLOCK FROM NORANDA WITHOUT THE ASSURANCE OF ACHIEVING COST SAVINGS AND OTHER BENEFITS THAT WOULD FOLLOW FROM A MERGER OF THE TWO COMPANIES NORCEN HAS THE OPTION OF RAISING ITS OFFER TO WIN THE BOARD'S SUPPORT OR ASKING NORTH CANADIAN MINORITY HOLDERS TO APPROVE THE EXISTING PROPOSAL DESPITE THE DIRECTORS' OPPOSITION AT LEAST ONE ANALYST SAID THAT OFFERING MORE THAN 067 NORCEN SHARE COULD MAKE THE TRANSACTION UNATTRACTIVE TO EXISTING NORCEN SHAREHOLDERS ESPECIALLY BECAUSE NORCEN WOULD HAVE TO EXTEND A REVISED OFFER TO NORANDA AND DAAL SENIOR EDPER GROUP OFFICIALS SAY THAT AS YET THEY ARE NOT UNDULY CONCERNED BY THE DECISION OF NORTH CANADIAN'S BOARD ROBERT HARDING CHIEF OPERATING OFFICER OF HEES INTERNATIONAL BANCORP SAID THAT EVEN IF NORCEN ONLY ACQUIRES THE NORANDA HOLDINGS IN NORTH CANADIAN THERE STILL IS A BENEFIT TO BE SEEN FOR THE GROUP CURRENTLY THE EDPER GROUP IS ATTEMPTING TO RATIONALIZE AND STREAMLINE ITS COMPLEX WEB OF CORPORATE HOLDINGS IN AN ATTEMPT TO REGAIN INVESTOR CONFIDENCE IN TORONTO STOCK EXCHANGE TRADING YESTERDAY NORCEN CLOSED AT C1750 UP 125 CANADIAN CENTS NORTH CANADIAN ROSE 875 CANADIAN CENTS TO C1350 9304010125 930401 LIBERTY NATIONAL BANCORP LOUISVILLE KY LIBERTY NATIONAL BANCORP SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF HARDIN COUNTY BANK & TRUST AND FARMERS DEPOSIT BANK BOTH OWNED BY CLOSELY HELD FINANCIAL DOMINION OF KENTUCKY CORP THE VALUE OF THE STOCK TRANSACTION WASN'T DISCLOSED 9304010124 930401 AMERINET GALEN SUPPLY PACTS CHATSWORTH CALIF SYNCOR INTERNATIONAL CORP SAID IT SIGNED CONTRACTS WORTH ABOUT 60 MILLION OVER THE NEXT THREE YEARS WITH AMERINET AND GALEN HEALTH CARE INC TO SUPPLY PRESCRIPTION RADIOPHARMACEUTICALS TO THEM ON A NATIONAL BASIS SEPARATELY AMERINET AND GALEN MADE AN AGREEMENT WITH DU PONT MERCK PHARMACEUTICAL CO A WILMINGTON DEL DU PONT CO AND MERCK & CO PARTNERSHIP FOR BULK PURCHASES OF RADIOPHARMACEUTICALS AMERINET BASED IN ST LOUIS IS A HEALTHCARE GROUP PURCHASING ORGANIZATION GALEN OF LOUISVILLE KY OWNS AND OPERATES 75 HOSPITALS IN 19 STATES SYNCOR OPERATES A NETWORK OF 98 NUCLEAR PHARMACY SERVICE CENTERS AND PROVIDES INTRAVENOUS DRUGS AND SOLUTIONS USED IN DIAGNOSTIC IMAGING 9304010123 930401 ECONOMY ECONOMIC DATA POSTED REBOUND FOR FEBRUARY BUT RISE IN FACTORY ORDERS AND LEADING INDICATORS REFLECTS SLOW RECOVERY BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO IMPORTANT ECONOMIC INDICATORS REBOUNDED IN FEBRUARY AFTER A WEAK JANUARY ILLUSTRATING THE TOUCHANDGO NATURE OF THE RECOVERY IT'S SPURRED UP THEN RESTS SPURRED UP THEN RESTS IT'S LIKE AN OLD MAN CLIMBING THE STAIRS SAID DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY HE CALLED BOTH OF YESTERDAY'S REPORTS MANUFACTURERS' NEW ORDERS AND LEADING ECONOMIC INDICATORS BLAND THE COMMERCE DEPARTMENT SAID NEW ORDERS FOR MANUFACTURED GOODS JUMPED 14 IN FEBRUARY TO A NEW HIGH OF 2586 BILLION FACTORY ORDERS FELL 13 IN JANUARY THE INCREASE WAS THE FOURTH REPORTED IN THE PAST SIX MONTHS AND ORDERS ARE UP 10 FROM 1992 BUT WEFA GROUP ECONOMIST THOMAS RUNIEWICZ REMAINS CAUTIOUS HE SAID HE WOULD BE MORE ENCOURAGED TO SEE THIS MONTH'S ORDERS UP 15 AND EVEN MORE ENCOURAGED IF I SEE APRIL'S ORDERS UP BUT THIS IS A GOOD SIGN AND THERE IS SOME OPTIMISM OUT THERE THE DEPARTMENT ALSO REPORTED A 05 INCREASE IN LEADING INDICATORS IN FEBRUARY REGAINING MOMENTUM AFTER GOING FLAT IN JANUARY THE INDEX AIMED AT FORECASTING BROAD MOVEMENTS IN THE ECONOMY WHICH ORIGINALLY WAS REPORTED AS HAVING RISEN 01 IN JANUARY WAS REVISED TO SHOW NO CHANGE IN THAT MONTH SIX OF 11 LEADING INDICATORS CONTRIBUTED TO THE RISE IN FEBRUARY FACTORY BACKLOGS ORDERS FOR PLANT AND EQUIPMENT CLAIMS FOR EMPLOYMENT BENEFITS PRICES OF SENSITIVE MATERIALS STOCK PRICES AND AVERAGE WORKWEEK THE FOUR INDICATORS HOLDING THE INDEX BACK WERE THE MONEY SUPPLY BUILDING PERMITS CONSUMER EXPECTATIONS AND MANUFACTURERS' NEW ORDERS FOR CONSUMER GOODS AND MATERIALS JOHN GODFREY CHIEF ECONOMIST FOR BARNETT BANKS INC INTERPRETS THE BOOST AS AN ABERRATION CAUSED BY JANUARY'S LACK OF GROWTH WHAT IT SHOWS IS THAT THE ECONOMY IS CLEARLY SLOWING HE SAID SPECIFICALLY MR GODFREY WAS TROUBLED BY THE FALLING MONEY SUPPLY AND DROOPING CONSUMER CONFIDENCE BUT HE FOUND THE STRONG RISE IN ORDERS FOR PLANT AND EQUIPMENT ENCOURAGING TO A LARGE EXTENT THE STATISTICS JUST REPRESENT A TURNAROUND FROM LAST MONTH SAID MR GODFREY HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 05 INCREASE IN THE INDEX FOR FEBRUARY AND SHOWED NO CHANGE IN JANUARY THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR FEBRUARY AND THE CHANGE FROM JANUARY ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 120 UNCHANGED FROM THE PREVIOUS MONTH 9304010122 930401 WHO'S NEWS BROOKE'S LIGGETT UNIT REPLACES TOP OFFICERS CREATES INTERIM OFFICE NEW YORK THE SMALLEST MAJOR CIGARETTE COMPANY AND ONE OF THE MOST TROUBLED REPLACED ITS TOP TWO EXECUTIVES LIGGETT GROUP INC A UNIT OF BROOKE GROUP LTD ANNOUNCED THE DEPARTURE OF SPENCER VOLK ITS PRESIDENT AND CHIEF EXECUTIVE AND MARK STEWART LIGGETT'S CHIEF FINANCIAL OFFICER A SPOKESMAN FOR THE PARENT DECLINED TO ELABORATE BUT THE DEPARTURES COME ON THE HEELS OF LIGGETT'S DISMAL PERFORMANCE LAST YEAR I'M NOT SURPRISED SAID GARY BLACK A TOBACCO ANALYST WITH SANFORD C BERNSTEIN & CO THEIR VOLUMES ARE HEMORRHAGING LIGGETT'S SHIPMENTS FELL BY 11 LAST YEAR THE LARGEST DROP OF ANY MAJOR CIGARETTE COMPANY THE COMPANY WHICH PIONEERED THE DISCOUNT CIGARETTE BUSINESS LAST YEAR FELL VICTIM TO PHILIP MORRIS COS AND RJ REYNOLDS TOBACCO CO THE TOBACCO UNIT OF RJR NABISCO HOLDINGS INC WHEN BOTH MADE A HEAVY PUSH INTO CHEAP CIGARETTES LIGGETT'S SHARE OF THE CIGARETTE BUSINESS FELL TO 31 LAST YEAR DOWN FROM 56 IN 1984 WHEN IT WAS THE MAIN PLAYER IN THE DISCOUNT MARKET IN ADDITION TO ITS DISCOUNT BRANDS LIGGETT MAKES THE L&M CHESTERFIELD AND EVE BRANDS FOR THE NINE MONTHS ENDED SEPT 30 THE MOST RECENT PERIOD FOR WHICH FINANCIAL INFORMATION IS AVAILABLE LIGGETT'S PROFIT WAS 124 MILLION A DROP OF 62 FROM 323 MILLION FOR THE COMPARABLE 1991 PERIOD BROOKE GROUP'S STOCK IS ALSO UNDER PRESSURE IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BROOKE WAS QUOTED AT 2375 DOWN 125 CENTS AND OFF FROM ITS 52WEEK HIGH OF 6125 AS AN INTERIM STEP LIGGETT CREATED A THREEPERSON OFFICE OF THE CHIEF EXECUTIVE CONSISTING OF BENNETT S LEBOW CHAIRMAN OF BROOKE RICHARD S RESSLER VICE CHAIRMAN OF BROOKE AND ROUBEN V CHAKALIAN A CONSULTANT TO LIGGETT A FORMER RJ REYNOLDS INTERNATIONAL TOBACCO EXECUTIVE MR CHAKALIAN HAS THE MOST DIRECT TOBACCO INDUSTRY EXPERIENCE LIGGETT ALSO SAID YESTERDAY THAT IT WAS CLOSING ITS 20PERSON NEW YORK OFFICE AND MOVING MOST OF THE STAFF TO LIGGETT'S HEADQUARTERS IN DURHAM NC MR VOLK AND MR STEWART DID NOT RETURN CALLS SEEKING COMMENT LIGGETT IS BROOKE'S LARGEST UNIT BROOKE'S OTHER MAIN BUSINESS IS AN INFORMATION PROCESSING COMPANY 9304010121 930401 WHO'S NEWS CHEVRON CORP CHEVRON CORP SAN FRANCISCO CARLA A HILLS WAS ELECTED A DIRECTOR AT THIS PETROLEM COMPANY SUCCEEDING GEORGE P SHULTZ WHO REACHED THE COMPANY'S MANDATORY RETIREMENT AGE OF 72 MRS HILLS 59 YEARS OLD IS CHAIRMAN OF HILLS & CO SHE HAD BEEN A DIRECTOR OF CHEVRON FROM 1977 THROUGH 1988 BEFORE RESIGNING TO BECOME US TRADE REPRESENTATIVE IN THE BUSH ADMINISTRATION 9304010120 930401 INTERNATIONAL CANARY WHARF CREDITORS TO DECIDE ON PAYMENT LONDON UNSECURED CREDITORS OF THE UNFINISHED CANARY WHARF DEVELOPMENT ARE BEING ASKED TO SAY BY THE END OF THE WEEK WHETHER THEY ARE WILLING TO ACCEPT 15 PAYMENT ON THE 70 MILLION 1046 MILLION THEY ARE OWED SOURCES AT THE DEVELOPMENT SAID UNSECURED CREDITORS WHO ARE ASKED TO PUT UP A WARRANTY ON THEIR WORK WILL GET AN ADDITIONAL 25 PAYMENT OR 40 PENCE ON THE POUND THE SOURCE SAID IF THE CREDITORS MOST OF THEM BUILDING CONTRACTORS AGREE TO THE PARTIAL PAYMENT A FORMAL VOTE WILL BE HELD AND BANKERS WILL PUT UP MONEY TO EXTEND AN UNDERGROUND TRAIN LINE TO THE PROJECT SEVERAL MILES EAST OF LONDON'S FINANCIAL DISTRICT BUT IF THE CREDITORS FAIL TO AGREE ON THE PAYMENT CANARY WHARF IS LIKELY TO FACE LIQUIDATION SAID THE SOURCE WHO SPOKE ON CONDITION THAT HE NOT BE IDENTIFIED THE UNSECURED CREDITORS HAVE BEEN ADVISED THEY WOULD PROBABLY GET NOTHING FROM A LIQUIDATION THE SOURCE SAID CANARY WHARF HAS BEEN OPERATED BY ADMINISTRATORS FROM THE ACCOUNTING FIRM OF ERNST AND YOUNG SINCE THE PROJECT'S DEVELOPER OLYMPIA & YORK DEVELOPMENTS LTD RAN INTO SERIOUS FINANCIAL TROUBLES LAST YEAR AND LOST CONTROL OF THE PROJECT ONCE ENVISIONED AS A NEW FINANCIAL CAPITAL OF EUROPE BANKERS WHO HAVE SUNK 600 MILLION INTO CANARY WHARF HAVE TENTATIVELY AGREED TO PUT UP MILLIONS MORE TO PERSUADE THE GOVERNMENT TO EXTEND THE JUBILEE LINE OF THE LONDON UNDERGROUND TRAIN SYSTEM TO CANARY WHARF 9304010119 930401 ESPN TO BROADCAST ADDITIONAL OFFERINGS VIA PAY PER VIEW NEW YORK ESPN THE CABLE SPORTS CHANNEL 80OWNED BY NEW YORKBASED CAPITAL CITIES/ABC INC SAID IT WILL START OFFERING PAYPERVIEW SERIES AND EVENTS ON A REGULAR BASIS BEGINNING WITH A 12WEEK PACKAGE OF COLLEGE FOOTBALL GAMES IN THE FALL FOR ITS INITIAL EFFORT ESPN WILL WORK WITH ABC SPORTS AND OTHER ESPN AFFILIATES TO MARKET AND DISTRIBUTE REGIONAL COLLEGE FOOTBALL GAMES TO AREAS OF THE COUNTRY NOT RECEIVING THOSE GAMES OVER THE AIR THE COMPANY SAID THAT ABC SPORTS STILL WOULD PLACE THE GAME OF LARGEST APPEAL WITH EACH AFFILIATED STATION IN THE ABC TELEVISION NETWORK THE INITIAL PACKAGE SCHEDULED TO BEGIN SEPT 4 WOULD ALLOW CABLE SUBSCRIBERS FOR A FEE TO ADD UP TO 35 GAMES TO THOSE ALREADY AVAILABLE FREE OVER THE AIR ESPN'S ENTRY INTO THE PAYPERVIEW MARKET MARKS THE FIRST TIME A SPORTS CABLE CHANNEL HAS JUMPED INTO A MEDIUM MORE ACCUSTOMED TO SPECIAL EVENTS SUCH AS ROCK CONCERTS BOXING AND PROFESSIONAL WRESTLING THE NEW PARTNERSHIP ENDS A SIMILAR EXPERIMENTAL ARRANGEMENT THAT ABC HAD LAST YEAR WITH SHOWTIME EVENT TELEVISION A UNIT OF DEDHAM MASSBASED VIACOM INC THAT VENTURE WHICH DISTRIBUTED PAYPERVIEW COLLEGE FOOTBALL GAMES FOR 895 AND 995 ENDED WITH LESSTHANSPECTACULAR RESULTS ABC AND SHOWTIME HAD HOPED 25000 TO 40000 VIEWERS WOULD BUY THE BROADCASTS EACH WEEK ALTHOUGH RESULTS FELL BELOW EXPECTATIONS BACKERS SAID THAT IT WAS AN EXPERIMENTAL VENTURE WE'RE ANNOUNCING WE'RE IN THE BUSINESS SAID DICK GLOVER SENIOR VICE PRESIDENT OF ESPN ENTERPRISES THE UNIT THAT WILL OVERSEE PAYPERVIEW PROJECTS NOW WE WANT TO SIT DOWN WITH CABLE OPERATORS COLLEGES AND OTHER MIDDLEMEN TO DETERMINE WHAT IS THE BEST PACKAGE TO PUT TOGETHER ESPN SAYS THE RESOURCES OF THE TWO PARTNERS WILL SIGNIFICANTLY UPGRADE THE PACKAGE FROM LAST YEAR'S INITIAL EFFORTS ESPN SAID ITS AFFILIATES WILL INTEGRATE SALES AND MARKETING EFFORTS NATIONWIDE WITH ABC STAFF ALL TECHNICAL COORDINATION OF THE VENTURE WILL BE DONE AT ESPN'S BRISTOL CONN HEADQUARTERS WHERE GAMES WILL BE PULLED DOWN FROM SATELLITES AND BEAMED BACK OUT TO CABLE OPERATORS BEYOND THE FOOTBALL GAMES MR GLOVER SAID THE VENTURE HAS NO AGENDA FOR EVENTS WE'LL LOOK AT ALL EVENTS THAT MAKE SENSE HE SAID ONE POSSIBILITY ESPN IS TELECASTING THE WORLD CUP SOCCER CHAMPIONSHIP IN 1994 THAT MIGHT BE A PRODUCT TO BRING TO PAYPERVIEW MR GLOVER SAID 9304010118 930401 WHO'S NEWS NEW OFFICIALS NAMED AT TWO ROGERS FIRMS TORONTO ROGERS COMMUNICATIONS INC NAMED GARFIELD EMERSON CHAIRMAN MR EMERSON 52 YEARS OLD WHO WAS DEPUTY CHAIRMAN OF THE BROADCASTING TELECOMMUNICATIONS AND CABLE TELEVISION COMPANY SUCCEEDS JOHN GRAHAM 80 WHO WILL RETIRE ROGERS CANTEL COMMUNICATIONS INC CONTROLLED BY ROGERS COMMUNICATIONS NAMED DAVID S GERGACZ PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE CELLULAR TELEPHONE CONCERN MR GERGACZ 44 WAS PRESIDENT AND CHIEF EXECUTIVE OF BOSTON TECHNOLOGY INC A MAKER OF TELECOMMUNICATIONS SOFTWARE AND HARDWARE MR GERGACZ SUCCEEDS JAMES SWARD 47 AS PRESIDENT MR SWARD IS LEAVING THE COMPANY TO PURSUE OTHER INTERESTS ROGERS CANTEL SAID MR GERGACZ WILL SUCCEED GEORGE FIERHELLER 59 AS CHIEF EXECUTIVE EDWARD ROGERS 59 WAS NAMED CHAIRMAN OF ROGERS CANTEL SUCCEEDING MR FIERHELLER MR ROGERS IS PRESIDENT AND CHIEF EXECUTIVE OF ROGERS COMMUNICATIONS 9304010117 930401 INTERNATIONAL NORSK DATA YEAR'S LOSS NARROWS OSLO NORWEGIAN COMPUTER SERVICES GROUP NORSK DATA AS SAID ITS NET LOSS NARROWED IN 1992 TO 386 MILLION KRONER 561 MILLION FROM 810 MILLION KRONER IN 1991 THE GROUP ALSO ANNOUNCED IT WILL PROPOSE A WRITEDOWN OF ITS SHARE CAPITAL TO ZERO AS PART OF A REFINANCING AND RESTRUCTURING PLAN NORSK DATA SAID IT HAD REACHED AGREEMENT WITH ITS TWO MAJOR CREDITORS NORWEGIAN BANKING GROUPS DEN NORSKE BANK AND FOKUS BANK ON A REFINANCING PLAN TO SECURE FUTURE OPERATION OF THE GROUP AS REPORTED NORSK DATA'S SHARES HAVE BEEN SUSPENDED SINCE FEBRUARY WHILE NEGOTIATIONS WERE UNDERWAY SALES FELL 43 TO 103 BILLION KRONER WHICH REFLECTS DIVESTMENTS AND PHASEOUTS IT DIDN'T OFFER A FORECAST FOR THE CURRENT YEAR 9304010116 930401 BUSINESS BRIEF DU PONT CO SITE TO MAKE NYLON RESINS IS PLANNED NEAR SINGAPORE DU PONT CO SAID IT WILL SOON BEGIN BUILDING A 100 MILLION POLYMERIZATION FACILITY FOR ITS ZYTEL NYLON RESINS IN PULA SAKRA AN ISLAND OFF THE SOUTHERN COAST OF SINGAPORE THE WILMINGTON DEL CHEMICAL CONCERN SAID IT NEEDS THE FACILITY TO MEET THE RAPIDLY GROWING CUSTOMER NEEDS FOR ZYTEL IN THE ASIAPACIFIC REGION ONCE FULLY OPERATIONAL THE SITE WILL EMPLOY 65 PEOPLE THE PLANT IS SCHEDULED TO START UP IN JUNE 1995 9304010115 930401 MARKETSCAN KOSHERFOOD FIRMS DIVE INTO MAINSTREAM BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL LONG ASSOCIATED WITH MATZO AND GEFILTE FISH AND THE STAPLES OF THE PASSOVER SEDER KOSHERFOOD COMPANIES ARE LOOKING BEYOND THEIR TRADITIONAL JEWISH CUSTOMERS TO THE MASS MARKETPLACE AMONG THE RESULTS KOSHER LINGUINE AND KOSHER FROZEN PIZZAS MEANWHILE SOME GIANT FOOD MARKETERS HAVE LATCHED ONTO THE KOSHER SEAL AS A NEW WAY TO POSITION PRODUCTS AS WHOLESOME TO THE GENERAL PUBLIC AMONG THE RESULTS KOSHER FROZEN YOGURT AND KOSHER BABY CEREAL WITHIN THE NEXT YEAR TO CITE A SPECIFIC EXAMPLE KOSHER HOTDOG MAKER NATIONAL FOODS INC AND ITS NEW PARENT CONGLOMERATE CONAGRA INC ARE EXPECTED TO LAUNCH A LINE OF PREPARED FOODS UNDER A BANNER UNITING NATIONAL'S HEBREW NATIONAL AND CONAGRA'S HEALTHY CHOICE BRAND NAMES WE HAVE A VISION OF BEING A KOSHERFOOD CONGLOMERATE BOASTS HARVEY POTKIN PRESIDENT OF NATIONAL FOODS WHICH CONAGRA ACQUIRED IN JANUARY BUT CONAGRA ISN'T THROWING ITS MARKETING MIGHT BEHIND CHOPPED LIVER PRODUCTS BEING CONSIDERED FOR THE LINE INCLUDE A NEW FROZEN DINNER CONAGRA BELIEVES THERE'S TREMENDOUS POTENTIAL FOR A KOSHERFOOD LINE FOR MAINSTREAM AMERICA SAYS MR POTKIN ABOUT 60 OF HEBREW NATIONAL'S FRANKFURTER CUSTOMERS AREN'T JEWISH MANY OLDLINE KOSHERFOOD COMPANIES HOWEVER HAVE BEEN SLOW TO CATCH THE TREND AND HAVE FAILED TO AGGRESSIVELY CAPITALIZE ON DEMAND IN THE WIDER MARKETPLACE INDEED SALES FOR THE BIGGEST BRANDS ON THE SEDER TABLE WERE LACKLUSTER LAST YEAR ACCORDING TO NATIONAL SALES DATA COMPILED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE IN THE YEAR ENDED FEB 28 UNIT SALES FOR MATZO MONARCH MANISCHEWITZ CO WERE DOWN 32 AND THOSE OF RIVAL ARON STREIT INC WERE FLAT BOTH COMPANIES REGISTERED 3 GAINS IN DOLLAR SALES BECAUSE OF PRICE INCREASES ON MOST KEY PRODUCTS GEFILTEFISH MARKETER ROKEACH FOODS CO SAW SALES SLIDE 28 TO 124 MILLION SALES OF NATIONAL'S HEBREW NATIONAL PREMIUMPRICED HOT DOGS SAUSAGES AND DELI PRODUCTS ROSE A SLIGHT 2 WHICH THE COMPANY ATTRIBUTED TO THE RECESSION THE STANDOUT IN THE CROWD WAS EMPIRE KOSHER POULTRY INC A KOSHERCHICKEN COMPANY THAT HAS AGGRESSIVELY DIVERSIFIED INTO SUCH SECULAR FARE AS KOSHER FROZEN PIZZAS AND PREPACKAGED LUNCHEON MEATS LAST YEAR EMPIRE'S SALES JUMPED 14 TO 7 MILLION HEALTHCONSCIOUS NONJEWISH CONSUMERS ARE DEFINITELY A GROWING PART OF OUR BUSINESS SAYS BIRGITTA WADE DIRECTOR OF ADVERTISING WE RAN SOME ADVERTISING IN EATING WELL MAGAZINE LAST YEAR AND THE PHONES WERE RINGING OFF THE HOOK JUST BECAUSE A FOOD IS KOSHER DOESN'T MEAN IT'S AUTOMATICALLY HEALTHFUL HOWEVER KOSHER FOOD IS CHECKED TO MAKE SURE IT ADHERES TO THE KASHRUT A COMPLEX SYSTEM OF DIETARY LAWS SOME OF THE GUIDELINES SUCH AS THOSE THAT DICTATE CLOSE INSPECTION OF ANIMAL CARCASSES COULD HAVE SOME BEARING ON THE QUALITY OF THE FOOD BUT MANY OTHERS THOSE BANNING SHELLFISH FOR EXAMPLE HAVE LITTLE SIGNIFICANCE TO THE GENERAL POPULATION STILL MARKETING EXPERTS SAY THAT THE GENERAL PUBLIC DISSATISFIED WITH GOVERNMENT FOOD INSPECTIONS INCREASINGLY SEES KOSHER CERTIFICATION AS A QUALITY CHECK KOSHER IS THE GOOD HOUSEKEEPING SEAL OF THE 1990S DECLARES JOE REGENSTEIN AN OFFICIAL OF THE NATIONAL KOSHER FOODS TRADE ASSOCIATION SOME OF THE BIGGEST NAMES IN THE FOOD BUSINESS ARE RESPONDING FOR WHILE AMERICAN JEWS NUMBER ONLY SIX MILLION THEIR HIGHERTHANAVERAGE INCOMES AND CONCENTRATION IN CRUCIAL MAJOR MARKETS MAKE THEM SOUGHTAFTER TARGETS FOR NATIONAL BRANDS GERBER PRODUCTS CO FOR EXAMPLE RECENTLY ACQUIRED THE KOSHER DESIGNATION FOR ITS DRY BABY CEREALS THE MOVE WAS PART OF AN EFFORT TO BOOST SALES ON THE EAST COAST WITH ITS LARGE JEWISH POPULATION IN AN INTERNAL STUDY DANNON YOGURT CO FOUND THAT THE CIRCLE U LABEL PLACED ON A NUMBER OF ITS PRODUCTS IN LATE 1990 WILL DIRECTLY CONTRIBUTE 2 MILLION IN SALES ANNUALLY THE STUDY FURTHER CONCLUDED THAT THE SYMBOL HELPED DANNON GAIN SHELF SPACE IN SMALLER STORES AND GENERATED FREE PUBLICITY IN JEWISH MEDIA THE NUMBER OF KOSHERCERTIFIED PRODUCTS HAS SWELLED TO 23600 FROM 18000 IN 1989 ACCORDING TO MENACHEM LUBINSKY OF INTEGRATED MARKETING COMMUNICATIONS INC A JEWISHMARKETING FIRM MENACHEM GENACK WHO HEADS THE INSPECTION PROCESS FOR THE ORTHODOX UNION OF JEWISH CONGREGATIONS OF AMERICA ESTIMATES THE GROWTH AT OVER 5 ANNUALLY WHEN I FIRST STARTED MY OFFICE STAFF CONSISTED OF THREE RABBIS SAYS RABBI GENACK TEN YEARS LATER THERE ARE OVER 20 WITH KOSHER LABELS GOING ON NEW FOOD ITEMS EVERY WEEK THE SIZE OF THE BUSINESS IS HARD TO QUANTIFY ACCORDING TO MR LUBINSKY THE KOSHER MARKETING CONSULTANT US SALES OF ALL PRODUCTS BEARING THE KOSHER SEAL TOTALED 35 BILLION IN 1992 BY CONTRAST SALES TO CONSUMERS WHO SPECIFICALLY SEEK OUT KOSHER PRODUCTS WERE 2 BILLION ESTABLISHED KOSHER COMPANIES ARE SCRAMBLING TO DIVERSIFY BEFORE BIGGER COMPETITORS SHUT THEM OUT OF RIPE NEW MARKETING OPPORTUNITIES GEFILTEFISH SALES MAY GO DOWN A LITTLE BUT OTHER ITEMS WILL TAKE ITS PLACE PREDICTS IRWIN KRALSTEIN SENIOR VICE PRESIDENT OF SALES AT ROKEACH HIS COMPANY IS BETTING ON ITS NEW LINE OF KOSHER PASTAS TO TAKE UP THE SLACK OLDER PEOPLE ARE DYING OFF AND THE YOUNGER GENERATION IS LOOKING FOR NEWER MORE CREATIVE ITEMS ALSO UNDER PRESSURE IS MANISCHEWITZ THE KOHLBERG & COCONTROLLED CONCERN THAT INDUSTRY EXECUTIVES SAY HAS JUST BEGUN TO SHOW SIGNS OF LIFE UNDER A NEW PRESIDENT AFTER ITS 1991 SETTLEMENT WITH THE GOVERNMENT OVER ALLEGATIONS OF MATZO PRICEFIXING THE COMPANY LAY DORMANT FOR A TIME AND WAS PERCEIVED AS OVERLY DEPENDENT ON TRADITIONAL PASSOVER ITEMS PEOPLE THERE WERE WORKING IN AN OLDER TIME AND PERHAPS A SLOWER TIME SAYS RUTH FOLGER WEISS CREATIVE DIRECTOR OF AD LIB UNLIMITED A KOSHERFOOD MARKETING FIRM BUT CHANGES ARE AFOOT ACCORDING TO ROBERT KROLL THE RJR NABISCO HOLDINGS CORP EXECUTIVE WHO BECAME PRESIDENT OF MANISCHEWITZ A FEW WEEKS AGO HE SAYS THE COMPANY IS WORKING TO BROADEN ITS APPEAL TO THE NONJEWISH POPULATION I THINK THERE'S A RENEWED COMMITMENT TO ACCELERATING GROWTH SAYS MR KROLL AS EVIDENCE HE POINTS TO MANISCHEWITZ'S CURRENT MARKET TEST OF A KOSHER BAGEL CHIP WHILE THEY EYE WIDER MARKETS KOSHERFOOD COMPANY EXECUTIVES ARE WARY OF ERODING THEIR TRADITIONAL BASE OF JEWISH SUPPORT AS THEY DIVERSIFY THERE'S ALWAYS THE RISK OF TRYING TO DO TOO MUCH WITH THE NAME SAYS ONE INDUSTRY OBSERVER OF THE CHANGES UNDER WAY AT MANISCHEWITZ EVEN THE AMBITIOUS MR POTKIN WORRIES A LITTLE ABOUT THE HEBREW NATIONAL/HEALTHY CHOICE MIX WE HAVE TO TAKE A HARD LOOK AT WHETHER OR NOT THE LINE IS ACCEPTABLE TO CONSUMERS OR CONFUSING HE CONCEDES YES THERE'S THE OPPORTUNITY TO MAINSTREAM A LOT OF KOSHER PRODUCTS BUT THE PRICE AND QUALITY HAVE TO BE ACCEPTABLE TO THE MAINSTREAM POPULATION TRADITIONAL MARKETERS OF KOSHER FOODS ARE SCRAMBLING TO BROADEN THEIR APPEAL BY DEVELOPING SUCH PRODUCTS AS PASTAS AND BAGEL CHIPS BUT THE ONLY SUCCESS STORY SO FAR APPEARS TO BE EMPIRE KOSHER POULTRY WHICH HAS SCORED WITH FROZEN PIZZA AND LUNCH MEATS 9304010114 930401 ENTERPRISE USF&G LAUNCHES CAMPAIGN TO WOO SMALL BUSINESSES INSURER SLASHES PAPERWORK IN BID FOR MARKET OFTEN OVERLOOKED BY RIVALS BY RANDY MYERS SPECIAL TO THE WALL STREET JOURNAL FEW MAJOR PROPERTY AND CASUALTY INSURERS MAKE MONEY SELLING TO SMALL BUSINESSES THESE DAYS SERVICE COSTS ARE HIGH AND REVENUES ARE LOW INDEED MANY OF THE BIGGEST CARRIERS HAVE QUIETLY LEFT THE MARKET AMONG OTHERS TRAVELERS CORP AETNA LIFE & CASUALTY CORP AND CIGNA CORP HAVE PULLED BACK IN CERTAIN MARKETS THIS HAS LEFT SMALL COMPANIES INCREASINGLY DEPENDENT ON REGIONAL CARRIERS AND BIG DIRECT MARKETERS SUCH AS STATE FARM INSURANCE COS BLOOMINGTON IND WHILE INSURANCE IS AVAILABLE THE TREND HAS LED TO A REDUCTION IN CHOICE FOR SMALLBUSINESS OWNERS SAYS SEAN MOONEY SENIOR VICE PRESIDENT AND ECONOMIST WITH THE INSURANCE INFORMATION INSTITUTE A TRADE GROUP BUT A LEADING PROPERTY AND CASUALTY INSURER USF&G CORP THINKS IT SEES OPPORTUNITY WHERE COMPETITORS FOUND NONE THE COMPANY HAS LAUNCHED A FULLFLEDGD ASSAULT ON THE SMALLBUSINESS MARKET THIS YEAR A PET PROJECT OF NORMAN BLAKE JR CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER PART OF THE PROJECT CALLS FOR SLASHING THE PAPERWORK ASSOCIATED WITH SMALLBUSINESS INSURANCE IF USF&G'S ASSAULT SUCCEEDS OF COURSE IT WILL INCREASE THE OPTIONS AVAILABLE TO SMALLBUSINESS OWNERS AND IT COULD ALSO ENCOURAGE OTHER LARGE INSURERS TO STAY IN THE MARKET THE SMALLBUSINESS MARKET'S ATTRACTIVE CLAIMS HISTORY AND POTENTIAL FOR GROWTH MAKES IT TOO APPEALING TO IGNORE MR BLAKE SAYS PARTICULARLY WITH THE GROWTH OF MICROBUSINESSES THE MIGRATION OF BUSINESSES FROM URBAN CENTERS AND THE DOWNSIZING OF CORPORATE AMERICA IF WE CAN DRIVE OUR COSTS DOWN WE'LL HAVE ONE OF THE PREMIER MARKETS IN THE INDUSTRY HE SAYS MR BLAKE HAS A LOT RIDING ON THE NEW APPROACH SINCE TAKING OVER IN 1990 HE HAS JETTISONED MORE THAN A DOZEN NONINSURANCE OPERATIONS TRIMMED THE COMPANY'S WORK FORCE BY 41 AND PULLED USF&G OUT OF CERTAIN INSURANCE LINES IN A HANDFUL OF STATES WHERE REGULATORY PRESSURES PINCHED PROFITS THE COMPANY TOOK HUGE RESTRUCTURING CHARGES LEADING TO LOSSES OF 569 MILLION IN 1990 AND 176 MILLION IN 1991 BUT IT HAD A 28 MILLION PROFIT LAST YEAR AND ANALYSTS ARE OPTIMISTIC ABOUT FUTURE PROSPECTS A PROPERTY AND CASUALTY POLICY TYPICALLY COVERS A BUSINESS'S PROPERTY THE CONTENTS OF ITS BUILDINGS AND GENERAL LIABILITY IT MAY PROVIDE PRODUCT LIABILITY TOO USF&G PLANS TO MOVE TOWARD EVEN BROADER BUSINESS OWNERS' SINGLE POLICIES THAT INCLUDE AUTOMOBILES AND OTHER COVERAGE THE PUSHPART OF A RESTRUCTURING PROGRAM FOR THE COMPANY'S PROPERTY/CASUALTY OPERATIONS DUBBED OPERATION ROLLING THUNDER CALLS FOR USF&G TO SHARPLY INCREASE ITS VOLUME OF SMALLBUSINESS COVERAGE WHILE AT THE SAME TIME AGGRESSIVELY CUTTING PROCESSING COSTS IN HALF BEN GRIFFIN A SENIOR VICE PRESIDENT AND BUSINESS CHAMPION FOR THE PUSH HOPES TO BOOST USF&G'S SMALLBUSINESS VOLUME TO 1 BILLION IN ANNUAL PREMIUM FROM 240 MILLION CURRENTLY TOTAL CORPORATE REVENUE IN 1992 WAS 37 BILLION THE COMPANY FIGURES IT HAS ABOUT 160000 SMALLBUSINESS POLICYHOLDERS PAYING AN AVERAGE 1500 FOR COVERAGE IF YOU DON'T TAKE CARE OF THOSE SMALLBUSINESS CUSTOMERS THEN YOU TOTALLY LOSE YOUR CONNECTION WITH THEM WHEN THEY BECOME BIG BUSINESS CUSTOMERS MR GRIFFIN SAYS THE DRIVE EMERGED AFTER MR BLAKE A FORMER CHAIRMAN OF HELLER INTERNATIONAL CORP AND HIS NEW TEAM OF SENIOR EXECUTIVES TOOK A CLOSE LOOK AT RETURNS ON THE PROPERTY/CASUALTY BUSINESS WE FOUND THAT ROUGHLY 26 OF OUR PREMIUMS WERE ASSOCIATED WITH SMALL BUSINESSES THAT ACCOUNTED FOR 88 OF OUR POLICIES HE RECALLS YET THE RATIO OF ADMINISTRATIVE EXPENSES TO PREMIUMS FOR THAT BUSINESS ACCOUNTS GENERATING 5000 OR LESS IN ANNUAL PREMIUMS WAS 60 THIS WAS ROUGHLY DOUBLE THE INDUSTRY AVERAGE FOR ADMINISTERING PROPERTY/CASUALTY BUSINESS SEPARATE FROM LOSS CLAIMS WHERE USF&G SAYS IT HAS PARTICUARLY GOOD EXPERIENCE USF&G HISTORICALLY HAS BEEN THE BEST FRIEND OF THE INDEPENDENT AGENTS WHO WRITE A LOT OF THAT BUSINESS PROBABLY TOO GOOD A FRIEND SAYS ALEX BROWN & SONS INSURANCE ANALYST IRA MALIS IN VIEW OF ITS LOW RETURNS FROM THAT BUSINESS MANY COMPANIES SOLVE SUCH EXPENSE PROBLEMS BY STEERING CLEAR OF SMALLBUSINESS CLIENTS MAJOR CARRIERS DON'T WANT TO CONCEDE THEY SHUN THE BUSINESS BUT IT ISN'T UNCOMMON FOR THEM TO ACHIEVE THE SAME RESULT BY SETTING HIGH MINIMUMS FOR AGENTS SAYS MR MOONEY OF THE INSURANCE INFORMATION INSTITUTE BUT USF&G HAS DECIDED ON A DIFFERENT APPROACH CULTIVATING INDEPENDENT AGENTS IS A CRITICAL COMPONENT OF OUR GROWTH STRATEGY SAYS MR GRIFFIN THE WAY YOU SELL PRINGLES IS TO HAVE LOTS OF DISTRIBUTION POINTS AND SOME OF THEM ARE GROCERY STORES AND SOME ARE 7ELEVENS YOU CAN VIEW AGENTS THE SAME WAY USF&G ALREADY SELLS THROUGH A NETWORK OF SOME 4000 INDEPENDENT INSURANCE AGENCIES WHICH MIGHT HAVE ONE AGENT OR DOZENS OF AGENTS EACH WE'D LIKE TO HAVE 10000 OR 15000 SAYS MR GRIFFIN THE COMPANY IS PITCHING ITS NEW INTEREST THROUGH A HIGHTOUCH HIGHTECH TELEMARKETING CAMPAIGN THAT SEEKS TO PERSUADE AGENCIES THAT USF&G CAN ASSIST THEM WITH NEW COMPUTERAIDED POLICY HANDLING TECHNIQUES USF&G IS OPENING A NETWORK OF FIVE REGIONAL OFFICES TO SERVE SMALLBUSINESS ACCOUNTS THAT IN TURN WILL FREE THE COMPANY'S 34 BRANCH OFFICES TO SERVICE SO CALLED MIDDLEMARKET ACCOUNTS THAT GENERATE HIGHER PREMIUMS AND DEMAND MORE FACETOFACE CONTACT THE FIRST REGIONAL PILOT OFFICE OPENED IN DENVER LAST AUGUST HOPES TO CUT TO SIX FROM 33 THE NUMBER OF TIMES A USF&G EMPLOYEE PHYSICALLY HANDLES A SMALLBUSINESS ACCOUNT FROM APPLICATION TO RENEWAL IN ADDITION USF&G HAS WORKED AT A RESEARCH AND DEVELOPMENT LABORATORY IN THE BALTIMORE HEADQUARTERS AND IN THE DENVER OFFICE TO COMPUTERIZE THE UNDERWRITING PROCESS COMPUTERS SEND POLICIES DIRECTLY TO CUSTOMERS COMPLETE WITH A COVER LETTER FROM THE INDEPENDENT AGENCY SERVING THE ACCOUNT PRELIMINARY FIGURES INDICATE THE DENVER OFFICE HAS ENJOYED AN 88 RENEWAL RATE ABOUT 10 PERCENTAGE POINTS ABOVE THE INDUSTRY NORM AND ABOUT SEVEN PERCENTAGE POINTS BETTER THAN USF&G'S PAST EXPERIENCE GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE 9304010113 930401 TECHNOLOGY & HEALTH SHALALA TO UNVEIL LEGISLATION FOR FREE CHILDHOOD VACCINES BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PLANS TO PROPOSE LEGISLATION TO MAKE FREE VACCINES AVAILABLE TO EVERY CHILD IN THE US UNDER THE AGE OF TWO THE BILL WOULD MAKE THE FEDERAL GOVERNMENT THE SOLE PURCHASER OF CHILDHOOD VACCINES BEGINNING IN FISCAL 1995 IT WOULD AUTHORIZE THE SECRETARY OF HEALTH AND HUMAN SERVICES TO BUY AS MUCH VACCINE AS IS NEEDED TO IMMUNIZE EVERY CHILD UNDER TWO AND DISTRIBUTE IT TO STATES AND FEDERAL HEALTH FACILITIES ACCORDING TO A DRAFT OF THE LEGISLATION HEALTH CARE PROVIDERS WHETHER PRIVATE DOCTORS OR PUBLIC CLINICS COULD CHARGE FOR ADMINISTERING THE VACCINE BUT NOT FOR THE VACCINE ITSELF AND THEY WOULD BE PROHIBITED FROM CHARGING EVEN AN ADMINISTRATION FEE IF PATIENTS' FAMILIES COULDN'T AFFORD IT HHS SECRETARY DONNA SHALALA AND DEMOCRATIC LAWMAKERS WILL UNVEIL THE LEGISLATION AT A NEWS CONFERENCE THIS AFTERNOON A DRAFT OF A TRANSMITTAL LETTER TO CONGRESS SAYS THE LEGISLATION WILL INSURE ALL CHILDREN IN THE US ARE IMMUNIZED AGAINST VACCINEPREVENTABLE DISEASE BY THEIR SECOND BIRTHDAY THE LETTER SAYS THAT IMMUNIZING CHILDREN IS SO IMPORTANT THAT THE PRESIDENT IS SUBMITTING THE LEGISLATION BEFORE HE UNVEILS HIS BROAD BILL IN MAY TO OVERHAUL THE HEALTH CARE SYSTEM THE BILL DOESN'T ATTACH A PRICE TAG TO THE IMMUNIZATION INITIATIVE THAT WILL COME IN THE HEALTH BILL AN ADMINISTRATION OFFICIAL SAID EARLIER THIS YEAR MR CLINTON ASKED CONGRESS FOR AN ADDITIONAL 300 MILLION FOR THE GOVERNMENT'S CHILDHOOD IMMUNIZATION PROGRAM MS SHALALA HAS BEEN NEGOTIATING WITH COMPANIES THAT MANUFACTURE CHILDHOOD VACCINES IN AN EFFORT TO PUSH THEM TO LOWER THE PRICES OF THEIR PRODUCTS MR CLINTON MADE HEADLINES IN FEBRUARY WHEN HE ATTACKED DRUG COMPANIES FOR SHOCKING PRICES OF VACCINES AND PRESCRIPTION MEDICINES IN THE END THE COST OF THE INITIATIVE WILL DEPEND ON THE PRICE NEGOTIATED WITH THE VACCINE MAKERS PHARMACEUTICAL COMPANIES HAVE BEEN LOBBYING AGAINST UNIVERSAL GOVERNMENT PURCHASE OF VACCINES THEY ARGUE THAT IT WILL STIFLE INNOVATION AND RESEARCH IN THE AREA BUT THEY ALSO FEAR THAT IF THE GOVERNMENT CORNERS THE MARKET ON IMMUNIZATIONS IT WILL BE ABLE TO CONTROL THEIR PRICES DRUG COMPANIES COULDN'T BE REACHED LAST NIGHT FOR COMMENT TO HELP ENSURE THAT ALL CHILDREN GET THEIR SHOTS THE BILL WOULD ALSO SET UP A NATIONAL IMMUNIZATION TRACKING SYSTEM AND GIVE GRANTS TO STATES TO ESTABLISH IMMUNIZATION REGISTRIES CURRENTLY ONLY AN ESTIMATED 50 OF THE CHILDREN IN THE US ARE FULLY IMMUNIZED BY AGE TWO 9304010112 930401 ECONOMY US AFLCIO PENSION GROUP DEVELOP HOUSING INVESTMENT PLAN OF 1 BILLION BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION AND THE AFLCIO'S PENSION INVESTMENT PROGRAM WILL SOON ANNOUNCE A PLAN TO INVEST 1 BILLION TO CONSTRUCT AND REHABILITATE HOUSING IN 25 CITIES UNDER THE PLAN THE AFLCIO'S HOUSING INVESTMENT TRUST WILL INVEST 500 MILLION AND ADMINISTER THE PROGRAM WHICH WILL USE FEDERAL DOLLARS AND STATE LOCAL AND PRIVATE FUNDS TO PRODUCE BETWEEN 10000 AND 12000 HOUSING UNITS FOR LOWINCOME AND MODERATEINCOME RENTERS IT IS TOUTED AS AN EXAMPLE OF PRESIDENT CLINTON'S DESIRE TO ENCOURAGE PUBLICPRIVATE PARTNERSHIPS TO ADDRESS DOMESTIC PROBLEMS HOUSING EXPERTS HOPE THE PLAN A LARGER SCALE OF WHAT THE UNION PENSION ORGANIZATION HAS DONE IN THE PAST WILL OPEN THE DOOR TO MORE PENSION INVESTMENTS IN INNER CITIES PENSION FUNDS ACCOUNT FOR 4 TRILLION IN ASSETS BUT A RECENT SURVEY SHOWED THAT TWOTHIRDS OF THE LARGEST 200 FUNDS INVESTED 935 BILLION IN FOREIGN SECURITIES LAST YEAR DWARFING THE AMOUNT OF PENSION MONEY ALL FUNDS INVESTED IN AFFORDABLE HOUSING OR COMMUNITY DEVELOPMENT HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS IS HAMMERING OUT THE DETAILS OF THE PLAN WHICH IS EXPECTED TO BE UNVEILED LATER THIS MONTH WE ARE ONLY BEGINNING TO UNDERSTAND THE ENORMOUS POTENTIAL THAT EXISTS AND THE TREMENDOUS CAPACITY OF WHAT WE CAN ACCOMPLISH MR CISNEROS SAID STEPHEN COYLE THE CHIEF EXECUTIVE OFFICER OF THE INVESTMENT TRUST SAID DEPLOYING PENSION FUNDS MAY BE THE BEST WAY OF CHANNELING INVESTMENT DOLLARS INTO DISTRESSED URBAN AREAS LAST YEAR MR COYLE'S TRUST INVESTED IN 3000 HOUSING UNITS BY PROVIDING LOANS SECURED BY FEDERAL OR STATE HOUSING AGENCIES LARGELY TO NONPROFIT ORGANIZATIONS THAT BUILT THE UNITS IT WORKS THIS WAY INDIVIDUAL PENSION FUNDS 80 OF THEM FROM UNIONS INVEST IN MR COYLE'S ORGANIZATION WHICH IN TURN PROVIDES LOANS TO BUILD AND REHABILITATE HOUSING BECAUSE IT IS A NATIONAL PROGRAM THAT INVESTS IN MANY DIFFERENT HOUSING PROJECTS THE RISK IS MUCH SMALLER THAN IF A PENSION PROGRAM INVESTED IN A SINGLE PROJECT THE LOANS ARE THEN POOLED AND ARE REPAID BY THE DEVELOPERS THE CURRENT YIELDS FOR INVESTORS FOR THE PREVIOUS ONEYEAR THREEYEAR AND FIVEYEAR PERIODS HAVE BEEN 779 871 AND 931 IN THE NEW PLAN THE INVESTMENT TRUST WILL USE ITS CONTACTS WITH LOCAL ORGANIZATIONS EQUITY PARTNERS AND LENDERS TO EXPAND HOUSING PRODUCTION WHAT I LIKE ABOUT THIS INITIATIVE IS PUTTING AMERICANS TO WORK IN AMERICA WITH OUR PENSION DOLLARS INVESTED WISELY AT HOME SAID AFLCIO PRESIDENT LANE KIRKLAND HE SAID AN ADDED BENEFIT IS THE CREATION OF UNION JOBS INCLUDING BETWEEN 10000 AND 15000 CONSTRUCTION JOBS MR CISNEROS ALSO BELIEVES THAT SUCH INVESTMENTS COULD LEAD TO THE USE OF SIMILAR FUNDS FOR ECONOMIC DEVELOPMENT IN URBAN AREAS IN ADDITION THE PROJECT WILL TRY TO REHABILITATE SOME OF THE THOUSANDS OF DILAPIDATED PUBLIC HOUSING PROJECTS OWNED BY HUD IN TURN MR CISNEROS IS BEING ASKED TO MAKE SEVERAL INVESTMENTS IN THE PROGRAM INCLUDING 50 MILLION IN LOANS OR GRANTS FOR STARTUP COSTS FOR THE CITIES AND NONPROFIT DEVELOPERS SET ASIDE 3000 UNITS OF SOCALLED SECTION 8 CERTIFICATES THAT WILL ALLOW POOR PEOPLE TO AFFORD RENTS PROVIDE 5 MILLION IN LOANS FOR PREDEVELOPMENT COSTS SUCH AS LAND PURCHASE OPTIONS 2 MILLION IN GRANTS FOR TECHNICAL ASSISTANCE TO THE NONPROFIT GROUPS AND 500000 FOR AN INDEPENDENT GROUP TO EVALUATE THE PROGRAM MUCH OF THE FUNDS WILL LIKELY COME FROM HUD PROGRAMS THAT HAVEN'T BEEN FULLY UTILIZED IN THE PAST FOR INSTANCE OUT OF 4 MILLION AUTHORIZED SINCE 1990 FOR ITS HOME PROGRAM DESIGNED TO CONSTRUCT AFFORDABLE HOUSING ONLY 4 HAS BEEN SPENT A TYPICAL EXAMPLE OF AN INVESTMENT TRUST PROJECT WAS THE RENOVATION OF GARDENS APARTMENTS IN OPA LOCKA FLA THE HOUSING TRUST INVESTED 10 MILLION IN CONSTRUCTION LOANS BACKED BY A LETTER OF CREDIT BY A SWISS BANK AND 10 MILLION IN PERMANENT FINANCING SECURED BY FEDERAL HOME LOAN MORTGAGE CORP TO HELP RESTORE 320 UNITS THE FIVEBUILDING DEVELOPMENT HAD BEEN CLOSED IN THE LATE 1980S BECAUSE IT WAS A DRUG HAVEN IN DADE COUNTY AND PLAGUED WITH POVERTY AND CRIME IN 1991 THE CITY CONVEYED THE PROJECT TO A DEVELOPER WHO GUARANTEED IT WOULD BE RENTED TO LOWINCOME AND MODERATEINCOME FAMILIES FOR AT LEAST 15 YEARS AND WAS PROVIDED 30 MILLION IN SECTION 8 ASSISTANCE BY HUD A CONSORTIUM OF LOCAL BANKS PROVIDED ADDITIONAL CONSTRUCTION MONEY AND THE LOAN WAS LATER SOLD TO FREDDIE MAC STATE AGENCIES AND A LIMITED PARTNER ALSO PROVIDED FUNDS THE PROJECT IS TO OPEN IN AUGUST AND 1700 FAMILIES HAVE APPLIED TO LIVE THERE 9304010111 930401 NEXT THEY MAY MAKE A COMPUTER THAT EXPANDS TO FILL YOUR OFFICE BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL MOST APRIL FOOLS DON'T SUFFER GLADLY BUT SOME SUFFER GRANDLY SOME FOR EXAMPLE ARE VICTIMS OF THE GRANDIOSE APRIL 1 PRANKS AT SUN MICROSYSTEMS INC OVER THE PAST NINE YEARS APRIL FOOLS' DAY AT THE MOUNTAIN VIEW CALIF COMPUTER MAKER HAS BECOME SUCH AN ELABORATE TRADITION THAT EXECUTIVES NOW ARRANGE THEIR TRAVEL PLANS AROUND IT MEMBERS OF THE PRANKSTER BAND SELL TSHIRTS COMMEMORATING IT AND NEWS MEDIA ARE INVITED TO COVER IT SOME OF SUN'S BRIGHTEST MINDS HAVE WRACKED THEIR BRAINS TO DEVISE PRANKS THAT ARE BOTH CHALLENGING TO PULL OFF AND THEY HOPE AMUSING TO THEIR BOSSES WHO ARE USUALLY THE TARGETS THE SCHEDULED TARGET THIS YEAR IS ANDREAS BECHTOLSHEIM A COMPANY COFOUNDER AND SUN'S CHIEF TECHNOLOGIST THE BAND OF SIX PRANKSTERS PLANNED TO WORK THROUGH THE NIGHT PULLING UP BUSHES IN FRONT OF HIS OFFICE REMOVING A WALL CREATING A SMALL GOLF COURSE IN THE OFFICE BUILDING A CAR RAMP DRIVING MR BECHTOLSHEIM'S PORSCHE INTO HIS OFFICE AND DROPPING INTO THE CAR A BIG CUSTOMMADE FISH TANK FILLED WITH SMALL LIVE SHARKS THEN THE WALL WAS TO BE REPLACED THE RAMP REMOVED AND THE BUSHES REPLANTED FOR MR BECHTOLSHEIM'S ARRIVAL THIS MORNING PREVIOUS APRIL FOOLS INCLUDE ERIC SCHMIDT PRESIDENT OF A SUN DIVISION ON APRIL 1 1985 HE FOUND A VOLKSWAGEN BEETLE PARKED IN HIS OFFICE AMONG OTHER PAST PRANKS FLOATING COMPANY COFOUNDER WILLIAM JOY'S NEW FERRARI IN A POND AT SUN'S HEADQUARTERS THE CAR WAS ACTUALLY PARKED ON A PLATFORM SLIGHTLY BELOW THE WATER'S SURFACE CONVERTING THE OFFICE OF TWO EXECUTIVES INTO A ONEHOLE GOLF COURSE WITH REAL SOD SAND AND WATER HAZARD AND RECREATING THE OFFICE OF A SUN VICE PRESIDENT INSIDE A GIANT WATERFILLED AQUARIUM COMPLETE WITH A DESK FILING CABINETS DESKTOP COMPUTER PICTURE OF HIS WIFE AND KIDS A 300POUND SEA BASS AND OTHER ASSORTED FISH SCOTT G MCNEALY CHAIRMAN AND CHIEF EXECUTIVE WELCOMES THE APRIL FOOLISHNESS EXPLAINING THAT SUCH ANTICS DEMONSTRATE SUN'S WORK HARD PLAY HARD PHILOSOPHY THE BASIC SLOGAN I OPERATE SUN ON IS KICK BUTT' AND HAVE FUN DOING IT BUT FUN CAN ALSO BE HARD WORK AND THIS YEAR'S MIGHTY EFFORT COULD BE THE SWAN SONG FOR THE CURRENT SIX PRANKSTERS ONE OF THEM COMPUTER ENGINEER ROBERT MITTON SAYS THIS MIGHT BE THE LAST YEAR WE'RE GETTING TIRED 9304010110 930401 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 AMERICAN TELEPHONE & TELEGRAPH CO 400 MILLION OF NOTES DUE FEB 15 1996 PRICED AS 4 1/2 S AT 9944 TO YIELD 471 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CROWN CORK & SEAL CO 500 MILLION THREEPART ISSUE OF SECURITIES PRICED THROUGH DEALERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 100 MILLION OF NOTES DUE APRIL 15 1998 WAS PRICED AT PAR TO YIELD 5875 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART CONSISTING OF 200 MILLION OF NOTES DUE APRIL 15 2003 WAS PRICED AS 6 3/4 S AT 99625 TO YIELD 6802 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE THIRD PART CONSISTING OF 200 MILLION OF DEBENTURES DUE APRIL 15 2023 WAS PRICED AS 8S AT 99625 TO YIELD 8033 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 110 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE OFFERING IS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P FORD MOTOR CREDIT CO 500 MILLION OF NOTES DUE APRIL 15 2000 PRICED AS 6 3/8 S AT 99741 TO YIELD 6421 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 76 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO SOUTHWESTERN BELL TELEPHONE CO 350 MILLION TWOPART ISSUE OF NOTES PRICED THROUGH DEALERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE OFFERING INCLUDES A 200 MILLION ISSUE OF NOTES DUE APRIL 1 2001 PRICED AS 6 3/8 S AT 99904 TO YIELD 638 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 47 BASIS POINTS ABOVE THE TREASURY'S 775 NOTE DUE 2001 THE OFFERING ALSO INCLUDES A 150 MILLION ISSUE OF NOTES DUE APRIL 1 2005 PRICED AS 6 5/8 S AT 9933 TO YIELD 6707 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE BOTH PARTS ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P SOUTHWESTERN BELL TELEPHONE IS A UNIT OF SOUTHWESTERN BELL CORP CALIFORNIA 780 MILLION VARIOUSPURPOSE GENERAL OBLIGATION BONDS APPARENTLY WON BY A LEHMAN BROTHERS GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 564 YIELDS FOR REOFFERED BONDS RANGE FROM 35 IN 1995 TO 595 IN 2023 MUNICIPAL BOND INVESTORS ASSURANCE CORP HAS INSURED BONDS DUE IN 2003 200510 AND 2012 THOSE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P BONDS DUE IN 2019 ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND ARE ALSO TRIPLEA RATED UNINSURED SECURITIES HAVE A DOUBLEA RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P BANCFIRST CORP INITIAL 1073000 COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO BROCK CONTROL SYSTEMS INC INITIAL 2150000 COMMON SHARES PRICED AT 11 EACH ALEX BROWN & SONS INC AND ROBINSONHUMPHREY CO ACTED AS THE MANAGING UNDERWRITERS BURNHAM PACIFIC PROPERTIES INC THREE MILLION COMMON SHARES PRICED AT 1975 A SHARE NATWEST SECURITIES LTD AND KEMPER SECURITIES INC WERE RETAINED TO ACT AS UNDERWRITERS CONSORCIO G GRUPO DINA SA INITIAL 108 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 16 A SHARE ACCORDING TO LEAD UNDERWRITER BEAR STEARNS & CO EACH ADS REPRESENTS FOUR SHARES OF COMMON STOCK CONCURRENT WITH THE US STOCK OFFERING THE COMPANY OFFERED 143 MILLION SHARES IN MEXICO DAVIDSON & ASSOCIATES INC INITIAL TWO MILLION COMMON SHARES PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP EASTERN UTILITIES ASSOCIATES 13 MILLION COMMON SHARES PRICED AT 27875 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC ENVIROTEST SYSTEMS CORP INITIAL 34 MILLION CLASS A SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO LIBERTY TECHNOLOGIES INC INITIAL 18 MILLION COMMON SHARES OFFERED AT 9 A SHARE THROUGH AN UNDERWRITING GROUP MANAGED BY ROBERTSON STEPHENS & CO AND HAMBRECHT & QUIST INC OHIO EDISON CO FOUR MILLION SHARES OF A NEW SERIES OF 775 CLASS A PREFERRED STOCK PRICED AT 25 EACH BY A GROUP OF UNDERWRITERS HEADED BY MORGAN STANLEY & CO MCDONALD & CO SECURITIES AND PRUDENTIAL SECURITIES INC FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES GOLD 1512 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REMICS OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1513 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 750 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS BANCO NACIONAL DE DESENVOLVIMENTO ECONOMICO E SOCIAL BRAZIL 50 MILLION OF 10 3/8 EUROBONDS DUE APRIL 27 1998 AT ISSUE AND REOFFER PRICE 99752 VIA SALOMON BROTHERS INTERNATIONAL YIELD 1044 SEMIANNUALLY AT REOFFER PRICE MARGIN 525 BASIS POINTS ABOVE TREASURY'S 5 1/8 BONDS DUE MARCH 1998 GUARANTOR FEDERATIVE REPUBLIC OF BRAZIL FEES 1 1/4 BANESTO FINANCE LTD SPAIN 100 MILLION OF SUBORDINATED STEPUP COUPON FLOATING RATE EURONOTES DUE APRIL 2003 VIA SALOMON BROTHERS INTERNATIONAL INTEREST FLOATS AT 150 BASIS POINTS ABOVE THE SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS UNTIL 1998 THEN RISES TO 250 BASIS POINTS ABOVE LIBOR CALLABLE FROM APRIL 1998 AND AT EACH SUBSEQUENT INTEREST PAYMENT DATE AT PAR ISSUE PRICE PAR GUARANTOR BANESTO SA FEES 3/4 CREDIT NATIONAL FRANCE 15 BILLION FRENCH FRANCS OF 7 3/8 EUROBONDS DUE APRIL 22 1996 AT ISSUE AND FIXED REOFFER PRICE 99935 VIA BNP CAPITAL MARKETS REOFFERED TO YIELD 740 ANNUALLY SPREAD 38 BASIS POINTS ABOVE 98 OAT DUE 1996 FEES 020 DRESDNER BANK AG GERMANY 50 MILLION OF FLOATING RATE EURONOTES APRIL 8 2003 AT ISSUE PRICE 10120 VIA DRESDNER BANK AG AND LEHMAN BROTHERS INTERNATIONAL INTEREST FLOATS AT 25 BASIS POINTS BELOW SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO MINIMUM 5 MAXIMUM 8 ISSUE IS AN ADDON TO PREVIOUS 100 MILLION NOTES AT ISSUE PRICE PAR FEES 1/2 HALIFAX BUILDING SOCIETY UK 250 MILLION OF 4 3/4 EUROBONDS DUE APRIL 29 1996 AT ISSUE PRICE 101065 VIA UBS PHILLIPS & DREW SECURITIES LTD REOFFERED AT 9989 TO YIELD 479 A 45 BASISPOINT MARGIN ABOVE THE TREASURY'S 4 5/8 DUE FEBRUARY 1996 FEES 1 3/8 KAUFHOF PLUS FINANCE BV GERMANY 100 MILLION CANADIAN DOLLARS OF COLLARED FLOATING RATE EURONOTES DUE APRIL 15 2003 AT ISSUE AND FIXED REOFFER PRICE 99 5/8 VIA DEUTSCHE BANK CAPITAL MARKETS INTEREST FLOATS AT 1/4 POINT BELOW THREEMONTH CANADIAN INTERBANK RATE SUBJECT TO A MINIMUM COUPON OF 6 1/2 AND A MAXIMUM COUPON OF 9 1/2 GUARANTOR KAUFHOF HOLDINGS AG FEES 1/2 9304010109 930401 BUSINESS BRIEF CIGNA CORP RESULTS FOR THE FIRST QUARTER TO BE REDUCED BY CHARGE CIGNA CORP SAID ITS FIRSTQUARTER 1993 RESULTS WILL BE REDUCED BY ABOUT 25 MILLION OR 35 CENTS A SHARE FROM THE EFFECT OF PROPERTYCASUALTY CLAIMS FROM THE WORLD TRADE CENTER EXPLOSION CIGNA BASED IN PHILADELPHIA SAID THE AMOUNT REFLECTS ESTIMATES OF LOSSES NET OF REINSURANCE FROM ITS PROPERTY AND CASUALTY BUSINESS FOR ALL EXPOSURES FROM THE EXPLOSION WHICH CONSIST OF CLAIMS FOR THE WORLD TRADE TOWERS AND THE VISTA HOTEL FOR THE 1992 FIRST QUARTER CIGNA EARNED 106 MILLION OR 148 A SHARE ON REVENUE OF 465 BILLION IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CIGNA WAS QUOTED AT 62 UP 375 CENTS 9304010108 930401 TECHNOLOGY IMMUNEX FILES WITH FDA SEATTLE IMMUNEX CORP SAID IT SUBMITTED A LICENSE AMENDMENT TO THE FOOD AND DRUG ADMINISTRATION TO USE ITS LEUKINE DRUG FOR THE ADDITIONAL TREATMENT OF LOW WHITEBLOODCELL LEVELS CAUSED BY CHEMOTHERAPY LEUKINE IS A WHITEBLOODCELL STIMULANT USED TO HELP CANCER PATIENTS RECOVER FROM BONEMARROW TRANSPLANTS THE BIOTECH COMPANY SAID THAT EVERY YEAR 225000 CANCER PATIENTS RECEIVE CHEMOTHERAPY THAT HARMS IMMUNE CELLS AND LEAVES THEM VULNERABLE TO LIFETHREATENING INFECTIONS 9304010107 930401 ARIZONA PUBLIC SERVICE CO BONDS PHOENIX ARIZONA PUBLIC SERVICE CO SAID IT CALLED FOR REDEMPTION APRIL 30 475 MILLION OF ITS 150 MILLION OF 9 SERIES FIRSTMORTGAGE BONDS DUE FEB 1 2017 THE BONDS ORIGINALLY ISSUED IN 1987 WILL BE REDEEMED AT PAR PLUS ACCRUED INTEREST ARIZONA PUBLIC SERVICE A UTILITY IS A UNIT OF PINNACLE WEST CAPITAL CORP 9304010106 930401 CREATIVE TECHNOLOGY PATENT SUIT MILPITAS CALIF CREATIVE TECHNOLOGY LTD SAID IT HAS FILED A PATENT INFRINGEMENT SUIT AGAINST AZTECH LABS INC OF FREMONT CALIF IN THE SUIT FILED IN FEDERAL COURT IN SAN FRANCISCO CREATIVE TECHNOLOGY CLAIMS THAT AZTECH VIOLATED COPYRIGHTS ON ITS SOUND BLASTER LINE OF CIRCUIT BOARDS AND OTHER AUDIOENHANCEMENT EQUIPMENT FOR PERSONAL COMPUTERS THE SUIT SEEKS TO STOP CLOSELY HELD AZTECH FROM SELLING ITS OWN VERSIONS OF SUCH PRODUCTS AND ASKS FOR UNSPECIFIED DAMAGES AN AZTECH SPOKESMAN SAID THE COMPANY HAD NOT SEEN THE SUIT AND COULD NOT COMMENT 9304010104 930401 CREDIT MARKETS TREASURY NOTE BOND PRICES DECLINE ON SELLING SPARKED BY SIGNAL OF PICKUP IN THE ECONOMY BY THOMAS D LAURICELLA AND CANDACE CUMBERBATCH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS WERE PUSHED DOWN YESTERDAY BY PROFITTAKING IN RESPONSE TO BEARISH ECONOMIC NEWS AND AHEAD OF THE MARCH EMPLOYMENT REPORT SLATED TO BE RELEASED TOMORROW THE BENCHMARK 30YEAR TREASURY BOND DROPPED 1/4 POINT TO 101 14/32 TO YIELD 693 UP FROM 691 ON TUESDAY THE 10YEAR NOTE DROPPED 1/32 TO 101 21/32 TO YIELD TO 602 UP FROM 601 THE MARKET STARTED YESTERDAY'S SESSION ON A FIRM NOTE BUT RAN INTO A BRICK WALL AT MIDMORNING IN RESPONSE TO BEARISH NEWS FROM A REPORT ON CHICAGO AREA MANUFACTURING ACTIVITY TRADERS SAID THE MARCH CHICAGO PURCHASING MANAGERS REPORT UNNERVED THE MARKET ON SEVERAL FRONTS THE OVERALL INDEX HAD BEEN EXPECTED TO DECLINE BUT WAS LITTLE CHANGED AT 607 IN MARCH COMPARED WITH 608 IN FEBRUARY A READING ABOVE 50 INDICATES EXPANSION IN MANUFACTURING A READING BELOW 50 INDICATES CONTRACTION IN ADDITION THE EMPLOYMENT INDEX ROSE TO 551 FROM 538 AND THE PRICESPAID INDEX INCREASED TO 699 FROM 673 THESE READINGS SIMILARLY POINTED TO A PICKUP IN THE ECONOMY THE NUMBERS WERE SEEN AS AN INDICATION OF ECONOMIC STRENGTH BOND INVESTORS FEAR ECONOMIC GROWTH BECAUSE IT CAN LEAD TO HIGHER INFLATION WHICH REDUCES THE VALUE OF FIXEDINCOME SECURITIES IN RESPONSE DEALERS TOOK THE MARKET LOWER REVERSING GAINS THAT HAD BEGUN IN OVERNIGHT TRADING WE PROBABLY HAD SOME SOME PROFITTAKING AFTER THE EXTENSION OF THE GAINS OVERNIGHT SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG & CO PEOPLE WHO HAD BOUGHT SECURITIES ON THE BOUNCE WERE STARTING TO SQUARE UP AND LOOK AHEAD AT THE EMPLOYMENT REPORT BUT THE SELLING PRESSURE WAS LIGHT AND THE MARKET ENDED WITH ONLY MODEST LOSSES IT WAS SIMILAR TO OTHER DAYS THAT WE'VE HAD RECENTLY WHERE YOU ESTABLISH SOME LEVELS EARLY AND THEN JUST SIT THERE SAID ALAN LEVENSON A MONEY MARKET ECONOMIST AT UBS SECURITIES INC TODAY WE TRADED OFF A QUARTER POINT AND THEN WE SAT NOBODY'S GOING TO TAKE THIS THING AND RUN WITH IT BEFORE THE EMPLOYMENT NUMBERS A RELUCTANCE TO ESTABLISH NEW POSITIONS AHEAD OF THE REPORT HAS KEPT ACTIVITY ON THE QUIET SIDE ALL WEEK WHAT YOU'RE LEARNING IS WHERE THE COMFORT ZONE IS AS PEOPLE HUNKER DOWN FOR THE EMPLOYMENT REPORT SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS FORECASTS FOR THE MARCH JOBS REPORT CENTER ON AN INCREASE OF 100000 IN NONFARM PAYROLL EMPLOYMENT WHICH WOULD FOLLOW A 365000 SURGE IN FEBRUARY MANY IN THE MARKET ARE ALSO LOOKING FOR THE FEBRUARY GAIN TO BE LOWERED CITING A HISTORY OF DOWNWARD REVISIONS TO FEBRUARY PAYROLL FIGURES MR JOHNSON OF FIRST CHICAGO SAID DOWNWARD REVISIONS TO THE FEBRUARY DATA OVER THE PAST FIVE YEARS HAVE AVERAGED JUST OVER 40000 EVEN IF WE GET THAT MUCH WE'RE STILL GOING TO HAVE A VERY BIG NUMBER FOR FEBRUARY HE SAID ANOTHER FOCUS FOR THE MARKET YESTERDAY WAS THE CONTINUING WORRY THAT INFLATION PRESSURES MAY BE REVIVING INFLATION JITTERS WERE HEIGHTENED BY A RENEWED SURGE IN COMMODITIES PRICES AS THE WIDELY WATCHED COMMODITY RESEARCH BUREAU INDEX GAINED 121 POINTS TO CLOSE AT 21249 YESTERDAY PEOPLE ARE VERY NERVOUS NOW ABOUT WHAT TO THINK ABOUT INFLATION SAID MR JOHNSON WE'VE HAD SOME RUNUP IN COMMODITY PRICES AND HAD UNCOMFORTABLE NEWS IN THE PRODUCER PRICE INDEX AND THE CONSUMER PRICE INDEX IN THE LAST COUPLE OF MONTHS AS A RESULT SOME IN THE MARKET ARE LOOKING BEYOND FRIDAY'S EMPLOYMENT REPORT TO INFLATION FIGURES NEXT WEEK AS THE NEXT MAJOR EVENT FOR THE MARKET THE PPI AND CPI REPORTS ARE DUE OUT NEXT WEEK IF WE GOT ANOTHER 04 INCREASE IN THE CPI YOU SHOULD BEGIN GETTING UNCOMFORTABLE YOU CAN ONLY MAKE EXCUSES FOR SO LONG MR JOHNSON SAID MEANWHILE TRADERS CONTINUED TO STRUGGLE WITH THE UNCERTAINTIES CREATED BY CONGRESS'S FAILURE TO RAISE THE LIMIT ON THE AMOUNT OF DEBT THE GOVERNMENT IS ALLOWED TO HAVE OUTSTANDING MOST IN THE MARKET BELIEVE CONGRESS WILL PASS A TEMPORARY INCREASE IN THE DEBT LIMIT FROM ITS CURRENT LEVEL OF 4145 TRILLION BEFORE IT RECESSES THIS WEEKEND FOR THE EASTER HOLIDAY BREAK I THINK THERE'S A PERCEPTION THAT THEY ARE GOING TO GET IT DONE AND THAT IT'S NOT GOING TO BE A PROLONGED DRAMA SAID MR LEUZZI OF WARBURG BUT THE TREASURY DEPARTMENT HAS RUN OUT OF ROOM TO ISSUE NEW SECURITIES AND MORE THAN LIKELY WILL HAVE TO POSTPONE AN AUCTION OF 1425 BILLION OF ONEYEAR BILLS SCHEDULED FOR TODAY AN ANNOUNCEMENT ON THE FATE OF THE ONEYEAR AUCTION WILL BE MADE BY MIDMORNING TODAY A TREASURY SPOKESWOMAN SAID YESTERDAY THE TREASURY SOLD 1514 BILLION OF FIVEDAY CASH MANAGEMENT BILLS WITH A COUPONEQUIVALENT YIELD OF 314 TODAY THE MARKET WILL HAVE SEVERAL PIECES OF ECONOMIC DATA TO CONTEND WITH STARTING WITH THE WEEKLY JOBLESS CLAIMS REPORT THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT CALLS FOR A DECLINE IN CLAIMS OF 3000 TO 346000 THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT IS SLATED TO RELEASE ITS MARCH REPORT TODAY AS WELL FORECASTS CENTER ON THE INDEX SLIPPING TO 540 FROM 558 IN FEBRUARY RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED APRIL 2 AND MATURE APRIL 7 1993 PRICES OF MUNICIPAL BONDS ENDED 1/4 POINT LOWER TO 3/8 POINT HIGHER IN THIN TRADING THE GEORGIA MUNICIPAL ELECTRIC AUTHORITY'S 550 REVENUE BONDS MATURING IN 2020 CLOSED UNCHANGED AT 94 TO YIELD 592 ALTHOUGH SELLING PRESSURE HAS ABATED AFTER HEAVY PROFITTAKING IN RECENT WEEKS MUNI SPECIALISTS SAY THE MARKET ISN'T IN VERY GOOD CONDITION ONE OF THE MAIN PROBLEMS FOR MUNIS IS THE SEEMINGLY ENDLESS FLOW OF NEW ISSUES ANALYSTS SAY IN THE FIRST QUARTER THERE WERE RECORD PRICINGS OF LONGTERM MUNICIPAL SECURITIES TOTALING APPROXIMATELY 646 BILLION ACCORDING TO SECURITIES DATA CO WITH US INTEREST RATES STALLED AT LOW LEVELS PRICINGS AREN'T EXPECTED TO EBB ANY TIME SOON WHEN MUNIS RALLIED IN FEBRUARY ON WORRIES ABOUT THE HIGHER FEDERAL INCOME TAXES PROPOSED BY THE CLINTON ADMINISTRATION THERE WAS INSATIABLE DEMAND FOR THEM NOW HOWEVER TAXEXEMPTS ARE APPEARING FASTER THAN THEY CAN BE ABSORBED THE MARKET'S NOT DOING THAT WELL BECAUSE PARTICIPANTS SEEM TO BE CHOKED UP WITH ALL THE SUPPLY SAID JAMES HIGGINS A TRADER AT DILLON READ & CO DESPITE CURRENT MARKET CONDITIONS CALIFORNIA APPARENTLY DIDN'T HAVE ANY TROUBLE WITH ITS LATEST OFFERING A GROUP OF UNDERWRITERS LED BY LEHMAN BROTHERS WON THE STATE'S 780 MILLION OF VARIOUSPURPOSE GENERAL OBLIGATION BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 564 AND THE SECURITIES QUICKLY SOLD OUT THE BONDS WERE ASSIGNED YIELDS THAT RANGE FROM 350 IN 1995 TO 595 IN 2023 THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND FINANCIAL SECURITY ASSURANCE INC ARE INSURING SOME OF THE BONDS AND THOSE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP UNINSURED BONDS HAVE BEEN RATED DOUBLEA BY MOODY'S AND SINGLEAPLUS BY S&P WE HAD A LOT OF ORDERS BEFORE THE SALE AND THE BONDS WENT FAST SAID STANLEY CIEMNIECKI MANAGER OF NATIONAL UNDERWRITING AT LEHMAN BROTHERS BUYERS HE ADDED INCLUDED MONEY MANAGERS AND BOND FUNDS CALIFORNIA'S GENERAL OBLIGATION BOND ISSUE INCLUDED APPROXIMATELY 18 MILLION OF NONCALLABLE ZEROCOUPON BONDS FOR THE STATE'S CALBOND TAXFREE FUND THE FUND IS A NEW UNIT INVESTMENT TRUST DEVELOPED AS A JOINT PROGRAM BETWEEN STATE TREASURER KATHLEEN BROWN'S OFFICE BANK OF AMERICA AND THE CONCORD FINANCIAL GROUP AND TARGETED FOR SMALL INVESTORS THE TRUST WILL BE OFFERED IN TWO SERIES SERIES A OFFERS INVESTMENTS OF 15000 OR LESS AND DOESN'T CARRY ANY SALES CHARGE DURING THE INITIAL OFFERING PERIOD SERIES B OFFERS INVESTMENTS OVER 15000 AND THERE IS A SALES CHARGE OF 25 ON THE TOTAL AMOUNT INVESTED CORPORATE BOND SALES PICKED UP YESTERDAY WITH A NUMBER OF WELLKNOWN COMPANIES TAPPING THE MARKET WITH SIZABLE DEALS YESTERDAY'S 18 BILLION TALLY INCLUDED 500 MILLION OFFERINGS FROM AMERICAN TELEPHONE & TELEGRAPH CO AND FORD MOTOR CREDIT CO THE FINANCE UNIT OF FORD MOTOR CO MEANWHILE CROWN CORK & SEAL CO A LEADING PRODUCER OF METAL AND PLASTIC CONTAINERS PLACED 500 MILLION OF NEW PAPER IN ITS FIRST PUBLIC DEBT OFFERING AMONG SEASONED ISSUES INVESTMENTGRADE BONDS SLIPPED 1/8 AFTER GIVING UP EARLIER GAINS JUNK BONDS CLOSED FLAT TO 1/8 LOWER SEPARATELY A SUMMARY OF UNDERWRITING IN THE FIRST THREE MONTHS OF 1993 INDICATES THAT CORPORATE AMERICA CONTINUES TO SELL NEW DEBT AT A RECORD PACE SPURRED BY THE CHANCE TO TRIM BORROWING COSTS BY REFINANCING OUTSTANDING HIGHERCOUPON SECURITIES AT LOWER INTEREST RATES AS BORROWING COSTS PLUNGED COMPANIES OFFERED MORE THAN 122 BILLION OF NEW DEBT IN THE FIRST QUARTER SECURITIES DATA CO SAID THAT TOPPED THE PREVIOUS SINGLEQUARTER RECORD OF 87 BILLION SET IN THE THIRD QUARTER OF 1992 PRICES OF MORTGAGE SECURITIES ENDED SLIGHTLY LOWER IN SECONDARY TRADING 7 MORTGAGE SECURITIES FOR APRIL DELIVERY ENDED OFF LESS THAN 1/8 POINT GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 1/32 LOWER AT 100 11/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 3/32 SOFTER AT 100 21/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ENDED 3/32 LOWER AT 100 14/32 GENERAL ELECTRIC CO'S KIDDER PEABODY & CO UNIT AS ANTICIPATED WAS CLEARLY THE TOP FIRSTQUARTER MORTGAGE SECURITIES UNDERWRITER ACCORDING TO STATISTICS COMPILED BY SECURITIES DATA CO KIDDER JUMPED TO AN EARLY LEAD THIS YEAR AND NEVER WAVERED THE COMPANY UNDERWROTE 185 BILLION OF MORTGAGE SECURITIES FOR A 19 MARKET SHARE ALMOST DOUBLE THE VOLUME FROM THE FIRMS IN SECOND AND THIRD PLACE AMERICAN EXPRESS CO'S LEHMAN BROTHERS UNIT TOOK A DISTANT SECOND PLACE WITH 99 BILLION AND MERRILL LYNCH & CO WAS CLOSE BEHIND IN THIRD PLACE WITH 98 BILLION EACH OF THESE FIRMS HAD A MARKET SHARE OF ABOUT 10 IN 1992'S FIRST QUARTER KIDDER ALSO TOOK FIRST PLACE BY A SIGNIFICANT MARGIN BY UNDERWRITING 204 BILLION WHILE THE SECOND PLACE SALOMON BROTHERS INC OFFERED 129 BILLION TOTAL FIRSTQUARTER MORTGAGE SECURITIES ISSUANCE WAS 971 BILLION DOWN FROM 1034 BILLION IN THE SAME PERIOD LAST YEAR THAT 7 DOWTURN CAN BE ATTRIBUTED TO RECENT DROPS IN HOUSING STARTS WHICH IN TURN CAN BE TRACED TO RISING LUMBER PRICES CONTENDS SECURITIES DATA