TOKYO JAPAN'S HIGHDEFINITIONTELEVISION INDUSTRY A FLOP SO FAR HAS NEW PLANS FOR ENTICING VIEWERS TO TUNE IN SALES OF THE MUCH BALLYHOOED WIDESCREEN ULTRACRISP HDTV SETS NEVER TOOK OFF THE WAY MANUFACTURERS HAD HOPED SO JAPANESE TECHNOLOGY COMPANIES HAVE SET THEIR EYES ON VIDEO BUFFS AND ARE READYING LASERDISK AND VIDEO PLAYERS AND SOFTWARE FOR THE SETS THEY'VE ALSO STARTED CUTTING THEIR SKYHIGH PRICES FOR HDTV SETS BY YEAR'S END SONY CORP OWNER OF COLUMBIA PICTURES AND PIONEER ELECTRONIC CORP PARTOWNER CAROLCO PICTURES INC SAY THEY WILL RELEASE IN JAPAN LASERDISK UNITS TO PLAY MOVIES AND MUSIC VIDEOS ON HDTV SETS MEANWHILE VICTOR CO OF JAPAN OWNER OF MALCOLM X PRODUCER LARGO ENTERTAINMENT PLANS TO RAISE THE ANTE WITH A VHSFORMAT VIDEOCASSETTE PLAYER FOR JAPAN THAT CAN PLAY AND RECORD BOTH CONVENTIONAL AND HDTV TAPES THE STAKES ARE HIGH JAPAN'S ELECTRONICS GIANTS ARE KEEN TO RECOUP THE BILLIONS OF YEN INVESTED IN HDTV TECHNOLOGY AND PROVE THAT THEIR HOLLYWOOD ACQUISITIONS WILL PRODUCE THE SYNERGY THEY ONCE PREDICTED THAT TASK WAS MADE ALL THE HARDER IN FEBRUARY WHEN THE US PULLED THE PLUG ON JAPAN'S HDTV STANDARD AS A CONTENDER FOR FUTURE US BROADCASTS INSTEAD THE US IS EXPECTED TO OPT FOR A MORE ADVANCED HOMEGROWN STANDARD IN EFFECT FREEZING OUT THE JAPANESE FEW OF THE FIRMS ARE FORECASTING BUOYANT HDTV SALES ANYTIME SOON NEW VIDEO PRODUCTS OR NO BY THEIR EFFORTS IN JAPAN HOWEVER THESE COMPANIES HOPE TO LAY THE GROUNDWORK FOR THEIR ASSAULT ON THE HUGE US MARKET FOR HDTV EQUIPMENT WHICH BY SOME ESTIMATES MIGHT TOTAL 68 BILLION FROM 1995 TO 2005 A LOT OF WHAT JAPANESE COMPANIES HAVE DEVELOPED SO FAR IS USABLE IN THE US SAYS CHUCK GOTO A TECHNOLOGY ANALYST WITH SG WARBURG JAPAN INC WHO BELIEVES THE JAPANESE CAN STILL BE A POTENT FORCE IN THE US MARKET THERE'S NO COMPANY IN THE US THAT CAN BUILD THESE TVS FEW TECHNOLOGIES HAVE NEEDED A SECOND CHANCE QUITE SO BADLY AS JAPANESE HDTV THE JAPANESE GOVERNMENT ONCE EXPECTED ANNUAL HDTV SALES OF TWO TRILLION YEN ABOUT 17 BILLION BY 2000 IN JAPAN ALONE BUT HIGH PRICES JAPAN'S SLUGGISH ECONOMY AND A PAUCITY OF HDTV PROGRAMMING HAVE HELD SALES TO ABOUT 10000 SETS TO DATE THE OBSTACLES HDTV MAKERS FACE ARE MADE CLEAR BY A STROLL THROUGH TOKYO'S AKIHABARA ELECTRONICS DISTRICT I ALREADY HAVE A 32INCH COLOR TELEVISION AND THE PICTURE IS VERY GOOD SAYS ONE MIDDLEAGE CUSTOMER AT LAOX AN ELECTRONICS STORE I UNDERSTAND THERE'S SOME DIFFERENCE IN THE HDTV PICTURE HE SAYS BUT EVEN IF I HAD ENOUGH MONEY FOR ONE I WOULD STILL HAVE TO THINK ABOUT IT TAKESHI FUJISAWA A 23YEAROLD SALESMAN COMPLAINS THAT THE NUMBER OF PROGRAMS FOR HDTV IS TOO SMALL THE COUNTRY'S ONE HDTV CHANNEL OPERATES ONLY EIGHT HOURS A DAY FEATURING MOSTLY SUCH PROGRAMS AS CAR RACES AND TRAVELOGUES LASERDISK PLAYERS AND VCRS FOR HDTV PROMISE TO DRAW CUSTOMERS LIKE MR FUJISAWA TO THE PRICEY SETS MAKERS SAY THE WIDE RECTANGULAR HDTV SCREEN CAN SHOW MOVIES AT THEIR FULL WIDTH NOT CLIPPED OFF AS ON ORDINARY TV SETS THESE PLAYERS WILL STILL BE EXPENSIVE PIONEER HAS ALREADY INTRODUCED A 15 MILLION YEN 12869 HDTV LASERDISK PLAYER FOR INDUSTRIAL USE THE COMPANY PLANS TO RELEASE A CONSUMER VERSION FOR UNDER A MILLION YEN LATER THIS YEAR SAYS MANAGING DIRECTOR SHIGEYOSHI YANAGI SONY SAYS ITS DISK PLAYER WILL FALL IN THE SAME PRICE RANGE MEANWHILE JVC WHICH IS MAJORITYOWNED BY MATSUSHITA ELECTRIC INDUSTRIAL CO SAYS IT HOPES TO PRICE ITS WVHS SYSTEM WHICH WILL PLAY HIGHDENSITY VIDEO TAPES AT ABOUT 600000 YEN SUCH PLAYERS WON'T BE WORTH MUCH WITHOUT A GOOD SUPPLY OF MOVIE TITLES OF COURSE SONY'S MOVIE UNIT IS TO RELEASE A LIBRARY OF LASER DISKS WHEN SONY PUTS OUT ITS DISK PLAYER ALTHOUGH THE COMPANY SAYS SUCH DETAILS AS PRICING AND THE NUMBER OF TITLES REMAIN TO BE WORKED OUT MATSUSHITA WHICH OWNS HOLLYWOOD'S MCA INC AND TENDS TO FOLLOW IN SONY'S WAKE SAYS IT IS CONSIDERING SIMILAR MOVES THE MAJOR ELECTRONICS FIRMS ARE ALSO STUDYING NONJAPANESE HDTV BROADCAST STANDARDS SUCH AS THOSE UNDER CONSIDERATION IN THE US ALTHOUGH TO BUILD SETS THEY WILL NEED TECHNICAL HELP FROM THE US FIRMS THAT DESIGN ANY US STANDARD MAKERS HAVE ALSO BEEN SLASHING SET PRICES SINCE LAST SUMMER TO A LOW OF 980000 YEN FROM ABOUT 15 MILLION YEN EVEN SO HDTV IS STILL TWO TO THREE TIMES AS EXPENSIVE AS ITS POORER COUSIN KNOWN AS WIDE VISION ALREADY WIDEVISION SETS WHICH OFFER A WIDE SCREEN LIKE HDTV BUT A CONVENTIONAL TELEVISION PICTURE HAVE OUTSOLD HDTV BY A FACTOR OF 10 KATSUHIKO SUGIYAMA A TECHNOLOGY ANALYST FOR LEHMAN BROTHERS JAPAN INC PREDICTS THAT WIDEVISION SALES WILL CONTINUE TO OUTSTRIP THOSE OF HDTV UNTIL 1999 EVEN SKEPTICS SUCH AS MR SUGIYAMA HOWEVER SAY CONSUMERS MAY GET HOOKED ON HDTV DESPITE ITS EXPENSE I HAVE WATCHED TOO MUCH HDTV HE SAYS IN MY HOME I CAN'T SEE EXISTING TV ANYMORE IT'S VERY VERY DIFFERENT 9304010102 930401 LAW LEGAL BEAT LAWYERS GOING TO CAMP TO LEARN SALES SKILLS IN THE COMPETITIVE '90S BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL THE LAST THING MOST CORPORATE LAWYERS WANT TO THINK ABOUT IS SALES AND THAT MAY BE WHY SO MANY ARE SO BAD AT IT NOW HOWEVER SOME LAW FIRMS ARE ASKING THEIR LAWYERS TO PARTICIPATE IN SEVERALDAY BOOT CAMPS IN SALES SKILLS RANGING FROM HOW TO MAINTAIN EYE CONTACT WITH PROSPECTIVE CLIENTS TO HOW TO DIVINE THE LEGAL PROBLEMS OF COMPANIES THAT DIDN'T EVEN KNOW THEY HAD ANY SUCH SALES TECHNIQUES ARE OLD HAT IN MOST INDUSTRIES OF COURSE BUT THEY ARE DOWNRIGHT REVOLUTIONARY FOR THE CORPORATE BAR THIS IS LARGELY BECAUSE UNTIL RECENTLY SOLICITING WORK WAS CONSIDERED UNDIGNIFIED AS WELL AS UNETHICAL BY BUSINESS LAWYERS BUT HARD ECONOMIC TIMES HAVE SOFTENED THAT ATTITUDE CONSIDERABLY THE GOAL OF SALES TRAINING IS TO TAKE DROUGHTMAKERS AND TURN THEM INTO RAINMAKERS SAYS BILL FLANNERY AN AUSTIN TEXAS CONSULTANT MR FLANNERY PUTS GROUPS OF 12 LAWYERS THROUGH A THREEDAY DRILL THAT OFTEN KEEPS SUCCESSFUL LAWYERS UP UNTIL 3 AM DOING HOMEWORK FIRST HE LECTURES LAWYERS ABOUT PERSONALITY TYPES SO THAT THEY CAN ANALYZE THEIR POTENTIAL CLIENTS AND FIGURE OUT HOW BEST TO APPEAL TO THEM THEN HE PRESENTS THE LAWYERS WITH A COMPLEX CASE STUDY INVOLVING A 100 MILLION COMPANY WITH AN IMPENDING INITIAL PUBLIC OFFERING AND A MINEFIELD OF LEGAL PROBLEMS THE LAWYERS INTERVIEW MOCK CLIENTS ON VIDEOTAPE THEN PLAN AND MAKE A PRESENTATION MR FLANNERY WHOSE CLIENTS HAVE INCLUDED WINSTON & STRAWN IN CHICAGO AND GARDERE & WYNNE IN DALLAS CHARGES 24000 FOR A THREEDAY SESSION PLUS ONEDAY FOLLOWUP VISIT IT'S FASCINATING MR FLANNERY ADDS THEY REALIZE THAT THEY'RE NOT VERY GOOD AT WHAT THEY THOUGHT THEY WERE GOOD AT IT'S SORT OF LIKE WATCHING YOUR TENNIS SWING OR GOLF SWING ALL THE TRAINING CONSULTANTS EXHORT LAWYERS TO HEED THE GOSPEL OF LEGAL SALESMANSHIP IN THE COMPETITIVE '90S THE CLIENT RULES THE PREMISE IS THAT CLIENTS WANT TO BE CATERED TO AND WILL BE MORE INCLINED TO STEER WORK TO LAWYERS WHO UNDERSTAND THEIR BUSINESS NEEDS THE CONSULTANTS TEACH LAWYERS TO FERRET OUT WHAT THE POTENTIAL CLIENT MAY NEED BY DOING RESEARCH ABOUT THE COMPANY'S BUSINESS AND THEN ASKING PROBING QUESTIONS TO UNCOVER LURKING LEGAL PROBLEMS MOST SIGNIFICANTLY THE TRAINERS URGE THE LAWYERS TO LISTEN TO THE RESPONSES LAWYERS DON'T KNOW HOW TO LISTEN SAYS CARL F PETERS A SEATTLEBASED CONSULTANT WITH HILDEBRANDT INC THEY ASK QUESTIONS JUST SO THEY CAN GET A CHANCE TO TALK ONCE THE BASICS ARE COVERED THE TRAINERS TURN TO DETAILS CONSULTANT JEFF BERGER WHOSE CLIENT LIST INCLUDES THE BIG LAW FIRM LATHAM & WATKINS IN LOS ANGELES TELLS LAWYERS THAT MAINTAINING EYE CONTACT LESS THAN TWOTHIRDS OF THE TIME MAKES THEM LOOK LESS THAN FORTHRIGHT BUT THAT CONSTANT EYE CONTACT MAKES PERSPECTIVE CLIENTS UNEASY COVERING THE MOUTH DURING SALES PITCHES CONNOTES MISTRUST AS WELL SAYS MR BERGER BASED IN SAN JUAN CAPISTRANO CALIF TO NONLAWYERS THIS COURSE OF STUDY MAY SEEM OBVIOUS BUT FOR MANY LAWYERS EVEN THE NOTION THAT THE CLIENT COMES FIRST IS A REVELATION LIKE OTHER EXTREMELY BRIGHT PEOPLE MANY LAWYERS TEND TO THINK OF THEMSELVES AS HOT STUFF SAYS ONE CONSULTANT IT'S PRIDE IT'S ARROGANCE IT'S ALL OF THOSE THINGS THEY'RE SO SUCCESSFUL AND THE WORLD HAS REVOLVED AROUND THEM FOR SO LONG THAT IT HASN'T CAUSED THEM TO REALLY THINK ABOUT OTHER PEOPLE SALES TRAINING IS ONLY THE LATEST WRINKLE IN LAWFIRM MARKETING WHICH HAS HAD A SHORT BUT TORTURED HISTORY TEN YEARS AGO PROGRESSIVE LAW FIRMS FOR THE FIRST TIME DEVELOPED STRATEGIC MARKETING PLANS MOST WERE FILED AWAY AND QUICKLY FORGOTTEN MORE RECENTLY LAW FIRMS HIRED MARKETING DIRECTORS WHO SHOWERED CLIENTS USUALLY COMPANIES' INHOUSE COUNSEL WITH SLICKLY PRODUCED BROCHURES MANY ENDED UP IN WASTEBASKETS NOW WE'RE DOWN TO THE ACTUAL EXECUTION PHASE OF MARKETING SAYS DONALD WHITE A PORTLAND MAINE CONSULTANT WHO SAYS HE HAS TRAINED LAWYERS AT 200 FIRMS THEY CAN'T DELEGATE IT TO OTHERS THEY HAVE TO BE SELLING AT LEAST SOME OF THOSE WHO HAVE TRIED IT SEEM TO BE REAPING THE HOPEDFOR REWARDS PAUL A BRUNO A PARTNER IN THE SAN FRANCISCO LAW FIRM THELEN MARRIN JOHNSON & BRIDGES SAYS HIS BILLINGS HAVE MORE THAN DOUBLED TO MORE THAN 15 MILLION A YEAR SINCE TAKING MR FLANNERY'S COURSE THREE YEARS AGO MR BRUNO WHO DOES CONSTRUCTION LITIGATION AND CONTRACT WORK SAYS THAT WHAT HE LEARNED ABOUT LISTENING AND STUDYING HIS CLIENTS' BUSINESS HAS CONTRIBUTED SIGNIFICANTLY TO HIS SUCCESS DONALD MULLER SAYS THAT A PARTNER AT THE PORTLAND OREGON LAW FIRM STOEL RIVES BOLEY JONES & GREY WHERE HE WAS ONCE MARKETING DIRECTOR TURNED A CLIENT THAT GENERATED 30000 TO 35000 IN FEES ANNUALLY INTO ONE GENERATING 400000 TO 500000 A YEAR THE PARTNER HE SAYS WAS INITIALLY SKEPTICAL ABOUT TRAINING BUT THEN USED THE NEW SKILLS TO UNDERSTAND THE CLIENT'S NEEDS AND BROADEN THE RELATIONSHIP AN UNTRAINED ATTORNEY WILL BE THINKING 'WHERE CAN I GET MORE BILLABLE HOURS' MR MULLER SAYS I'M CONFIDENT THAT IT HELPS TO BE FOCUSED ON THE NEEDS OF THE CLIENT AND NOT ON THE NEEDS OF THE LAW FIRM AN EXTORTIONIST'S PRISON SENTENCE CAN BE INCREASED BECAUSE THE VICTIM WAS A MARRIED MAN LIVING A SECRET GAY LIFE AN APPEALS COURT SAID IN AN UNUSUAL RULING ON THE FEDERAL SENTENCING GUIDELINES THE US APPEALS COURT IN CHICAGO SAID THAT BLACKMAILING A MARRIED HOMOSEXUAL DESERVES HARSHER PUNISHMENT BECAUSE IT IS CRUELER THAN MANY OTHER KINDS OF EXTORTION THE RULING IS APPARENTLY THE FIRST IN WHICH A CRIMINAL'S SENTENCE HAS BEEN LENGTHENED BECAUSE THE VICTIM WAS A GAY MAN OR LESBIAN SAID EVAN WOLFSON A STAFF ATTORNEY WITH THE NEW YORKBASED LAMBDA LEGAL DEFENSE AND EDUCATION FUND A GAYRIGHTS LEGAL GROUP IF ANYTHING THE TENDENCY IS OFTEN THE OPPOSITE HE SAID FEDERAL SENTENCING GUIDELINES SET FORTH THE PENALTIES THAT JUDGES MUST HAND DOWN FOR SPECIFIC CRIMES BASED ON THE DEFENDANT'S CRIMINAL RECORD AND OTHER FACTORS THE GUIDELINES ALLOW HARSHER PUNISHMENT TO BE IMPOSED ON CRIMINALS WHO CHOOSE TO PREY ON PEOPLE CONSIDERED UNUSUALLY VULNERABLE SUCH AS CHILDREN THE ELDERLY AND PEOPLE WITH DISABILITIES THE COURT AFFIRMED A TRIAL JUDGE'S DECISION TO INCREASE THE SENTENCING LEVEL THE DEFENDANT AN UNEMPLOYED CALUMET CITY ILL MAN HAD TRIED TO RAISE MONEY FOR HIS WIFE'S PREGNANCY BY BLACKMAILING A GAY MAN HE KNEW WAS MARRIED THE VICTIM WHO WAS ACTIVE IN CHURCH AND CIVIC AFFAIRS ATTEMPTED SUICIDE BLACKMAIL VICTIMS AREN'T ALL SUSCEPTIBLE TO THE SAME DEGREE JUDGE RICHARD A POSNER WROTE FOR THE SEVENTH US CIRCUIT COURT OF APPEALS SOME SECRETS ARE A GOOD DEAL MORE PAINFUL THAN OTHERS MARRIED HOMOSEXUALS THE DECISION SAID ARE DEEPLY CLOSETED AND APT TO BE RUINED IF EXPOSED JUDGE KENNETH F RIPPLE CONCURRED WITH THE MAJORITY OPINION BUT CRITICIZED IT FOR MAKING A SWEEPING GENERALIZATION SOME UNMARRIED GAY MEN WHO ARE IN PUBLIC LIFE COULD BE DEVASTATED BY BEING OUTED THE JUDGE SAID WHILE SOME MARRIED GAY MEN MIGHT BE UNAFFECTED BECAUSE THEY ARE MERELY IN A MARRIAGE OF CONVENIENCE IN THIS CASE THE BLACKMAILER WAS ESPECIALLY COLDHEARTED AND DESERVED A LONGER SENTENCE JUDGE RIPPLE SAID MARK THIROS THE ATTORNEY FOR THE DEFENDANT SAID NO DECISION HAS BEEN MADE ON WHETHER TO APPEAL HE SAID PROSECUTORS DIDN'T DEMONSTRATE THAT THE VICTIM RATHER THAN MARRIED GAY MEN IN GENERAL WAS ESPECIALLY VULNERABLE OR THAT THE BLACKMAILER WAS AWARE OF ANY VULNERABILITY A BUSINESSSUPPORTED BILL TO CREATE FEDERAL STANDARDS FOR PRODUCT LIABILITY LAWSUITS WAS REVIVED IN THE SENATE THE LEGISLATION HAS BEEN SOUGHT AFTER BY MANUFACTURERS AND INSURERS FOR MORE THAN A DECADE BUT SUPPORTERS SAY THEY ARE OPTIMISTIC ABOUT PROSPECTS FOR SENATE APPROVAL THIS YEAR THE BILL LOST ON A PROCEDURAL VOTE LAST YEAR AND HAS THE BACKING OF SOME DEMOCRATS WITH CLOSE TIES TO PRESIDENT CLINTON INCLUDING SENS JOHN D ROCKEFELLER IV OF WEST VIRGINIA AND JOSEPH I LIEBERMAN OF CONNECTICUT THE PRODUCT LIABILITY FAIRNESS ACT WOULD ESTABLISH A UNIFORM NATIONAL STANDARD FOR DETERMINING PUNITIVE DAMAGES AND ESTABLISH INCENTIVES FOR RESOLVING DISPUTES OUT OF COURT THE AUTHORS SAID THEY CHANGED THE BILL IN RESPONSE TO CONCERNS LAST YEAR FROM CONSUMER GROUPS THAT INJURED PLAINTIFFS WOULD BE FORCED TO PAY THE LEGAL COSTS OF THE COMPANIES THEY SUE IN CERTAIN CASES THE BILL IS STILL EXPECTED TO ATTRACT OPPOSITION FROM TRIAL ATTORNEYS AND OTHERS AND SUPPORTERS ACKNOWLEDGE THAT THE BILL MAY HAVE A HARD TIME GETTING A QUICK HEARING IN CONGRESS GIVEN THE CRUSH OF OTHER ECONOMIC AND HEALTHCARE INITIATIVES WHO'S NEWS RICHARD S LOMBARD FORMER VICE PRESIDENT AND GENERAL COUNSEL OF EXXON CORP JOINED HOUSTON LAW FIRM BAKER & BOTTS AS OF COUNSEL IN THE FIRM'S DALLAS OFFICE MR LOMBARD WILL WORK IN THE FIRM'S CORPORATE DEPARTMENT RICHARD CULLEN WHO HAS BEEN US ATTORNEY FOR THE EASTERN DISTRICT OF VIRGINIA SINCE 1991 WILL REJOIN RICHMOND VA LAW FIRM MCGUIRE WOODS BATTLE & BOOTHE AS A PARTNER IN THE FIRM'S LITIGATION DEPARTMENT EXJUDGE'S PLEA NEW YORK STATE'S FORMER CHIEF JUDGE SOL WACHTLER PLEADED GUILTY TO SENDING LETTERS THREATENING TO KIDNAP HIS EXLOVER'S DAUGHTER THE ASSOCIATED PRESS REPORTED UNDER THE PLEA AGREEMENT FEDERAL PROSECUTORS IN NEW JERSEY RECOMMENDED THAT MR WACHTLER SERVE 12 TO 18 MONTHS IN PRISON MR WACHTLER WHO RESIGNED FROM THE BENCH IN NOVEMBER SAID IN COURT THAT HE IS TAKING MEDICATION FOR CONTROL OF MY MANIC AND DEPRESSIVE STATE JUNDA WOO CONTRIBUTED TO THIS COLUMN 9304010101 930401 FREQUENCY ELECTRONICS CHARGE MITCHEL FIELD NY FREQUENCY ELECTRONICS INC SAID IT WILL TAKE A CHARGE OF BETWEEN 6 MILLION AND 8 MILLION IN THE FISCAL FOURTH QUARTER AND YEAR ENDING APRIL 30 FOR CONSOLIDATION COSTS THE ELECTRONICS AND MANUFACTURING COMPANY SAID THAT OVER THE NEXT SEVERAL MONTHS IT WILL CONSOLIDATE ITS SUNNYVALE CALIF SUBSIDIARIES FEI MICROWAVE AND FEI COMMUNICATIONS INTO ITS MITCHEL FIELD FACILITY ABOUT 180 JOBS AT SUNNYVALE WILL BE LOST FREQUENCY EARNED 179 MILLION OR FIVE CENTS A SHARE IN THE 1992 FISCAL FOURTH QUARTER 9304010099 930401 TWO RETAILERS SETTLE DISPUTES WITH FTC OVER CATALOG PRODUCTS WASHINGTON SHARPER IMAGE INC HAS AGREED TO SETTLE FEDERAL TRADE COMMISSION CHARGES THAT IT MISLED CONSUMERS ON THREE PRODUCTS LISTED IN ITS CATALOG UNDER THE AGREEMENT THE SAN FRANCISCO RETAILER IS REQUIRED TO STOP PROMOTING ITS TAP DETECTOR V A PHONETAP FINDER AS MORE EFFECTIVE THAN AN INSPECTION BY A PERSON THE COMPANY ALSO MUST STOP ADVERTISING THAT ITS CHEST MAXIMIZER PUSHUP SIMULATOR GIVES THREE TIMES THE RESULTS IN FEWER REPS FINALLY IT MUST STOP CLAIMING THAT ITS VITAMIN SUPPLEMENT CALLED ESSENTIAL FACTORS WITH OXYENERGIZER IS AN ANTIFATIGUE VITAMIN IN A SEPARATE SETTLEMENT RIGHT START INC A CATALOG FOR CHILDREN'S PRODUCTS HAS AGREED TO STOP CLAIMING THAT ITS FOAM TRAVEL TRAY FOR CHILDREN'S TOYS WAS APPROVED BY THE CONSUMER PRODUCT SAFETY COMMISSION AND FOUND SAFE FOR USE IN AUTOMOBILES FOR CHILDREN AGE 18 MONTHS AND OLDER RIGHT START BASED IN THOUSAND OAKS CALIF ALSO IS BARRED FROM CLAIMING THAT ITS AIR PURIFIER SIGNIFICANTLY REDUCES RISK OF BACTERIAL INFECTION AND ALLEVIATES RESPIRATORY PROBLEMS NEITHER SETTLEMENT CONSTITUTES AN ADMISSION OF GUILT AND BOTH ARE SUBJECT TO PUBLIC COMMENT FOR 60 DAYS BEFORE THE RULINGS ARE MADE FINAL 9304010098 930401 FINANCING BUSINESS SIMMONS FIRST NATIONAL CORP SIMMONS FIRST NATIONAL CORP PINE BLUFF ARK SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 700000 CLASS A COMMON SHARES THE BANK HOLDING COMPANY SAID IT WOULD USE THE PROCEEDS FROM THE PROPOSED OFFERING FOR GENERAL CORPORATE PURPOSES INCLUDING POSSIBLE ACQUISITIONS MANAGING UNDERWRITER OF THE OFFERING IS STEPHENS INC SIMMONS SAID IT INTENDS TO GRANT THE UNDERWRITERS A 30DAY OPTION TO BUY UP TO AN ADDITIONAL 105000 SHARES OF COMMON TO COVER OVERALLOTMENTS IF NECESSARY 9304010097 930401 INTERNATIONAL MEXICO'S SALE OF MEDIA FIRMS LURES 3 GROUPS BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THREE MEXICAN INVESTMENT GROUPS ARE EXPECTED TODAY TO FORMALLY DECLARE THEIR INTEREST IN PURCHASING A PACKAGE OF GOVERNMENTOWNED MEDIA COMPANIES INCLUDING TWO NATIONAL TELEVISION NETWORKS IN THE HOURS LEADING UP TO TODAY'S REGISTRATION DEADLINE FOR THE PRIVATIZATION SOME FORMER RIVALS WERE COALESCING INTO A SINGLE BIDDING GROUP MEANWHILE OTHER POTENTIAL BUYERS WERE TRYING TO WRAP UP PARTNERSHIPS WITH FOREIGN MEDIA CONCERNS SAID TO INCLUDE CAPITAL CITIES/ABC INC AND PARAMOUNT COMMUNICATIONS INC AFTER TODAY'S REGISTRATION THE FINANCE MINISTRY WILL EVALUATE THE QUALIFICATIONS OF EACH PROSPECTIVE BIDDING GROUP AND INVITE THOSE CANDIDATES WHO PASS MUSTER TO MAKE FORMAL OFFERS ANALYSTS SAY THE GOVERNMENT COULD RECEIVE AS MUCH AS 500 MILLION FOR THE MEDIA PACKAGE WHICH INCLUDES THE TWO NETWORKS 168 AFFILIATED STATIONS A NEWSPAPER GROUP A MOVIE THEATER CHAIN AND A PRODUCTION STUDIO ONE GROUP THAT WILL HAVE THE FINANCIAL BACKING OF MONTERREY INDUSTRIALIST ADRIAN SADA WHO RUNS BANCA SERFIN THE COUNTRY'S THIRD LARGEST BANK AND GRUPO VITRO THE DOMINANT GLASS MAKER IS LIKELY TO BE JOINED BY CLEMENTE SERNA ALVEAR A RADIO AND INDEPENDENT TELEVISION OPERATOR AND JOAQUIN VARGAS GOMEZ OWNER OF MULTIVISION A FASTGROWING CABLE SERVICE WORKING TOGETHER CAN STRENGTHEN OUR CHANCE OF WINNING AND BEING COMPETITIVE THEREAFTER SAID MR SERNA HE ADDED THAT ONLY A WELLFINANCED BROADBASED GROUP CAN HOPE TO COMPETE AGAINST GRUPO TELEVISA WHICH NOW CONTROLS 95 OF MEXICO'S TV MARKET THERE ALSO WAS THE POSSIBILITY THAT JAVIER PEREZ DE ANDA A RADIO OPERATOR WITH 160 STATIONS WOULD JOIN THE SADA GROUP EITHER TODAY OR LATER WHILE THESE FORMER RIVALS RECONCILED THE LITTLEKNOWN GUADALAJARAN INDUSTRIALIST RAYMUNDO GOMEZ FLORES WAS SAID TO BE NEGOTIATING AN ALLIANCE WITH FOREIGN MEDIA CONCERNS SOURCES CLOSE TO THE PRIVATIZATION SAY HE HAS BEEN IN TALKS WITH CAPITAL CITIES/ABC MEXICAN PRESS REPORTS HAVE ALSO LINKED HIM TO PARAMOUNT NEITHER MR GOMEZ FLORES NOR THE TWO US COMPANIES WOULD COMMENT FOREIGN CONCERNS WOULD BE LIMITED TO MINORITY STAKES IN THE MEDIA COMPANIES MR GOMEZ FLORES WHO HAS RAPIDLY BUILT AN EMPIRE WITH INTERESTS RANGING FROM TRUCKMAKING TO TROPICAL FRUIT WAS EXPECTED TO INDICATE TODAY IF HE HAS REACHED A DEAL WITH A FOREIGN PARTNER ANALYSTS SAID THAT'S BECAUSE HE MIGHT NOT BE ABLE TO PERSUADE THE GOVERNMENT THAT HE HAS THE EXPERTISE NECESSARY TO BE INVITED TO MAKE A BID UNLESS HE COMES TO THE TABLE WITH AN ESTABLISHED MEDIA CONCERN THE THIRD GROUP CONSISTS OF BANCOMER MEXICO'S SECOND LARGEST BANK ELEKTRA THE COUNTRY'S LARGEST CONSUMER ELECTRONICS CHAIN AND ORGANIZACION RADIO CENTRO A LARGE CHAIN OF RADIO STATIONS THEY HAVE BEEN TALKING TO OTHER LATIN AMERICAN MEDIA COMPANIES ABOUT A PARTNERSHIP BUT WERE UNLIKELY TO ANNOUNCE ANY AGREEMENTS TODAY THE GOVERNMENT SAID IT WOULD ALLOW THE BIDDING GROUPS REGISTERED TODAY TO MERGE OR TO BRING IN NEW PARTNERS LATER 9304010096 930401 CITICORP SELLS THREE BUILDINGS FOR 92 MILLION SALE SHOWS PROBLEM ASSETS AREN'T BEING UNLOADED BY THE BANK IN BULK BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL CITICORP SOLD THREE CONNECTICUT OFFICE BUILDINGS FOR 92 MILLION A SIGN THAT NOT ALL BANKS ARE TRYING TO UNLOAD THEIR PROBLEM REALESTATE ASSETS IN BULK THE 745000 SQUARE FOOT STAMFORD PROPERTIES WERE PURCHASED BY AN INVESTMENT FUND PUT TOGETHER IN 1991 BY MERRILL LYNCH & CO AND CHICAGO INVESTOR SAM ZELL CITICORP SAID THE PROPERTIES WHICH WERE ACQUIRED THROUGH FORECLOSURE FROM FD RICH CO A STAMFORD DEVELOPER SOLD FOR 68 OF THEIR ORIGINAL BOOK VALUE OF 135 MILLION CITICORP'S REALESTATE STRATEGY DIFFERS FROM THAT OF OTHER MONEY CENTER BANKS THAT HAVE ANNOUNCED BULK SALES OVER THE PAST SEVERAL MONTHS AND THE GROWING NUMBER THAT HAVE DECIDED TO PURSUE THAT OPTION CITICORP MAINTAINS THAT SELLING PROPERTIES INDIVIDUALLY WILL MAXIMIZE ITS MONETARY RECOVERY ALL THE REALESTATE IS EVENTUALLY SOLD INDIVIDUALLY TO AN END USER SAID ROBERT MCCORMACK CITICORP'S HEAD OF REAL ESTATE IN EVERY TRANSACTION BEFORE THE FINAL SALE A MIDDLEMAN TAKES A CUT IF WE JUST PUT THESE BUILDINGS ON THE MARKET WHEN WE GOT THEM IN 1991 WE NEVER WOULD HAVE GOTTEN AS MUCH BUT IN AN INDICATION THAT THE BANK'S RECOVERY COULD BE FAR LESS ON OTHER REALESTATE ASSETS CITICORP IS CLOSE TO A DEAL TO SELL ITS ROUGHLY 80 MILLION MORTGAGE ON 40 WALL ST AN AGING AND MOSTLY VACANT ONE MILLION SQUARE FOOT BUILDING IN LOWER MANHATTAN FOR ROUGHLY 5 MILLION ACCORDING TO AN INDIVIDUAL FAMILIAR WITH THE NEGOTIATIONS CITICORP DECLINED TO COMMENT BANKAMERICA CORP FIRST CHICAGO CORP NATIONSBANK AND FLEET FINANCIAL GROUP ARE AMONG THE LENDERS WHO HAVE ALREADY SOLD PORTFOLIOS OF REAL ESTATE IN BULK CHASE MANHATTAN CORP IS CURRENTLY TESTING THE MARKET WITH A 300 MILLION PORTFOLIO THAT COULD BE THE PRELUDE TO A MUCH LARGER BULK SALE ACCORDING TO PERSONS CLOSE TO THE OFFERING THOSE TRANSACTIONS HAVE ESTABLISHED A BULKSALE MARKET VALUE OF ABOUT 50 OF THE ORIGINAL BOOK VALUE ALTHOUGH THE TRANSACTIONS REQUIRED BANKS TO TAKE LARGE WRITEDOWNS AND CAPITAL HITS THEY ALSO BOOSTED THE SHARE PRICES OF THE SELLING COMPANIES IF YOU CAN PACKAGE THEM UP IN ONE TRANSACTION AND COMMUNICATE TO THE MARKET THAT YOU'VE PUT YOUR CREDIT PROBLEMS BEHIND YOU IT CAN HAVE A SIGNIFICANT POSITIVE IMPACT ON YOUR STOCK PRICE AND THAT CAN MAKE THE CAPITAL HIT WORTH IT SAID JOHN KLOPP PRINCIPAL IN NEW YORKBASED VICTOR CAPITAL GROUP WHICH HAS ADVISED MANY BANKS ABOUT REALESTATE ASSET SALES CITICORP SAID IT HAD GENERATED ABOUT 400 MILLION THROUGH SEPARATE REALESTATE SALES OVER THE PAST 15 MONTHS INCLUDING THE 115 MILLION SALE OF THE BANK ONE CENTER IN INDIANAPOLIS TO THE MERRILL/ZELL FUND AND THE 119 MILLION SALE OF A VACANT MANHATTAN OFFICE BUILDING TO GERMAN MEDIA CONGLOMERATE BERTELSMANN AG CITICORP SAID THAT THESE SALES AS WELL AS THE LATEST SALE WOULD NOT REQUIRE IT TO TAKE ADDITIONAL WRITEDOWNS BECAUSE THE PROPERTIES HAD ALREADY BEEN WRITTEN DOWN TO THE SALE PRICES ALL TOLD THE BANK HAD TAKEN POSSESSION AT YEAR END OF COMMERCIAL REAL ESTATE WITH A CURRENT BOOK VALUE OF 29 BILLION REFLECTING AN AVERAGE WRITEDOWN TO 55 CENTS ON THE DOLLAR NONPERFORMING COMMERCIAL REALESTATE LOANS TOTALED AN ADDITIONAL 27 BILLION AT YEAR END IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CITICORP GAINED 25 CENTS TO 2950 SEPARATELY CITICORP SAID IT SOLD ITS MINORITY INTEREST IN TAIWAN FIRST INVESTMENT & TRUST FOR ABOUT 165 MILLION TO CATHAY GROUP A TAIWANESE INDUSTRIAL AND FINANCIAL ORGANIZATION CITICORP SAID THE SALE IS PART OF ITS PROGRAM TO SELL NONSTRATEGIC ASSETS AND BUILD ITS BALANCE SHEET THE EFFECT OF THE SALE WILL BE REFLECTED IN FIRSTQUARTER RESULTS 9304010095 930401 DOW JONES WORLD STOCK INDEX ADDS 3 MARKETS NEW YORK STOCKS OF THREE COUNTRIES ARE BEING ADDED TO THE DOW JONES WORLD STOCK INDEX EFFECTIVE TODAY THE ADDITION OF MALAYSIA THE NETHERLANDS AND SWITZERLAND RAISES TO 13 THE NUMBER OF STOCK MARKETS AROUND THE GLOBE BEING TRACKED BY THE WORLD INDEX WHICH WAS INTRODUCED JAN 5 BY DOW JONES & CO PUBLISHER OF THIS NEWSPAPER WE INTEND TO MOVE QUICKLY TO ADD THE MAJOR MARKETS OF THE WORLD TO THE INDEX SAID JOHN PRESTBO THE WALL STREET JOURNAL'S MARKETS EDITOR ULTIMATELY WE WILL INCLUDE EVERY MARKET THAT'S OPEN TO FOREIGN INVESTORS STARTING TODAY THE INDEX CONTAINS NEARLY 2400 STOCKS MEANWHILE WORLD STOCK MARKETS LED BY HONG KONG GAINED IN THE FIRST QUARTER IN LOCAL CURRENCY TERMS HONG KONG GAINED 1535 THE MARKET LAGGING BEHIND THE MOST WAS THE UK WHICH ROSE 286 THE DOW JONES WORLD STOCK INDEX CLOSED YESTERDAY AT 10106 UP 909 IN DOLLAR TERMS FROM DEC 31 COMMUNICATIONS TECHNOLOGY WAS THE BESTPERFORMING INDUSTRY GROUP WORLDWIDE WITH A 307 GAIN IN THE QUARTER THE GROUP WITH THE WORST PERFORMANCE WAS BIOTECHNOLOGY WHICH FELL 3052 THE THREE ADDED COUNTRIES' STOCK ISSUES 75 FROM MALAYSIA 32 FROM THE NETHERLANDS AND 74 FROM SWITZERLAND HAVE BEEN ASSIGNED TO APPROPRIATE INDUSTRY GROUPS AND WILL CONTRIBUTE TO THE PERFORMANCE OF THOSE GROUPS BEGINNING TODAY A NEW INDUSTRY GROUP PLANTATIONS IS BEING ADDED TO THE INDEPENDENT SECTOR THESE BIG DIVERSIFIED AGRICULTURAL CONCERNS ARE PROMINENT IN THE MALAYSIAN MARKET DIVISORS USED TO CALCULATE THE INDUSTRY GROUP INDEXES ARE ADJUSTED WHENEVER THE STOCKS MAKING UP ANY GROUP ARE CHANGED SO AS TO PREVENT SUCH CHANGES FROM DISTORTING THE INDEX SERIES THE BASE DATE FOR THE WORLD INDEX CONTINUES TO BE DEC 31 1991 THE US INDUSTRY GROUPS DATE BACK TO JUNE 30 1982 BESIDES ADDING THE THREE COUNTRIES THE DOW JONES WORLD STOCK INDEX TABLE IS BEING ENHANCED TO SHOW DAILY NET CHANGE IN INDEX POINTS AS WELL AS IN PERCENT AND THE INDUSTRY GROUP PERFORMANCE TABLE NOW WILL SHOW THE YEARTODATE PERCENTAGE CHANGE FOR EVERY GROUP IN EACH REGION AND IN THE US READERS TELL US THE INDUSTRY GROUP INDEXES ARE MORE VALUABLE WITH YEARTODATE PERFORMANCE DATA AND WE'RE PLEASED TO OFFER THIS INFORMATION DAILY MR PRESTBO SAID FOR REFERENCE PURPOSES INDEXES FOR THE NEW COUNTRIES AND INDUSTRY GROUP ARE SHOWN IN TODAY'S TABLE BASED ON YESTERDAY'S CLOSING PRICES HOWEVER THE NEW COUNTRIES WILL BE USED IN CALCULATING THE WORLD INDEX FOR THE FIRST TIME TODAY 9304010094 930401 DRUG SCREENING SYSTEMS' WALLACE BLACKWOOD NJ DRUG SCREENING SYSTEMS INC SAID ROBERT G WALLACE STEPPED DOWN AS PRESIDENT AND CHIEF EXECUTIVE BUT WILL REMAIN CHAIRMAN MR WALLACE 54 YEARS OLD WAS REPLACED TEMPORARILY BY A THREEPERSON COMMITTEE WHICH INCLUDES HIMSELF WHILE A SUCCESSOR IS SOUGHT GARY NACHT 37 SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND ALSO ONE OF THE THREE COMMITTEE MEMBERS SAID MR WALLACE RESIGNED TO FOCUS ON DIRECT SALES HE SAID MR WALLACE ALSO WILL HELP WITH THE MARKETING OF THE COMPANY'S ONSITE SCREENING TESTS FOR DRUG ABUSE TO THE CRIMINAL JUSTICE SYSTEM JOHN PAPPAJOHN 64 A DIRECTOR IS THE THIRD MEMBER OF THE EXECUTIVE COMMITTEE 9304010093 930401 BUSINESS BRIEFS GROW GROUP INC SIGNED A LETTER OF INTENT TO SELL ITS AQUACHEM SWIMMING POOL CHEMICALS UNIT TO BIOLAB INC A UNIT OF GREAT LAKES CHEMICAL CORP TERMS WEREN'T DISCLOSED SPINNAKER SOFTWARE CORP ACQUIRED POWER UP SOFTWARE FOR 181 MILLION IN CASH AND THE ASSUMPTION OF AS MUCH AS 28 MILLION IN DEBT TRIMBLE NAVIGATION LTD INCORPORATED A WHOLLY OWNED JAPANESE SUBSIDIARY TRIMBLE JAPAN KK BANISTER INC RECEIVED A CONTRACT VALUED AT 25 MILLION CANADIAN DOLLARS US20 MILLION FROM UNION GAS LTD TO CONSTRUCT A PIPELINE IN ONTARIO DYNASCAN CORP SAID IT IS CHANGING ITS NAME TO COBRA ELECTRONICS CORP COMSTOCK RESOURCES INC AGREED TO SWAP 140000 SHARES OF ITS COMMON STOCK FOR AN ADDITIONAL 25 INTEREST IN CERTAIN OIL AND GAS LEASES IN SOUTHERN NEBRASKA AMERICAN TELEPHONE & TELEGRAPH CO NEGOTIATED A 28 MILLION THREEYEAR CONTRACT TO PROVIDE A CUSTOM TELECOMMUNICATIONS NETWORK FOR AVIS INC 9304010092 930401 POLITICS & POLICY BOMBINGINSPIRED IMMIGRATION BILLS SPUR DEBATE ON EFFECTIVENESS FAIRNESS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RUBBLE FROM THE WORLD TRADE CENTER BOMBING HAD SCARCELY SETTLED BEFORE MEMBERS OF CONGRESS WERE BURSTING WITH LEGISLATION DESIGNED TO KEEP UNWANTED FOREIGNERS OUT OF THE US WE LIVE IN AN UNSTABLE WORLD WHERE TERRORISM IS A CLEAR AND PRESENT DANGER SAYS SEN ALFONSE D'AMATO REPUBLICAN OF NEW YORK WHO ADDS THAT THE BOMBING HAS BROUGHT HOME THE IMMENSE AND IMMEDIATE PROBLEMS IN THE IMMIGRATION CONTROL SYSTEM SEN D'AMATO AND GOP SEN ALAN SIMPSON OF WYOMING HAVE PROPOSED LEGISLATION THAT WOULD EXCLUDE WITHOUT A HEARING PEOPLE WHO ALLEGEDLY HAVE IMPROPER DOCUMENTATION FLORIDA REPUBLICAN REP BILL MCCOLLUM HAS OFFERED SIMILAR LEGISLATION IN THE HOUSE IN ADDITION SEN D'AMATO AND DEMOCRATIC REP PETER DEUTSCH OF FLORIDA CITED THE EXPLOSION IN INTRODUCING AN UNRELATED BILL TO PROHIBIT ENTRY TO ALIENS WHO BELONG TO THE PALESTINIAN GROUP HAMAS WHETHER HAMAS IS RESPONSIBLE FOR THE WORLD TRADE CENTER BOMB OR NOT WE MUST SHUT THEM DOWN MR DEUTSCH SAID CRITICS SAY THOSE AND SIMILAR BILLS REPRESENT SIMPLEMINDED EFFORTS THAT WOULD HAMPER US ATTEMPTS TO PROTECT THE POLITICALLY PERSECUTED WITHOUT DETERRING REAL TERRORISTS RICK SWARTZ A LOBBYIST AND CONSULTANT FOR IMMIGRANT AND REFUGEE GROUPS ARGUES THAT IN THE NAME OF PROTECTING AMERICANS CONGRESS RISKS TRAMPLING THE RIGHTS OF LEGITIMATE REFUGEES AND POLITICAL ASYLUM SEEKERS PARTICULARLY HARMED HE SAYS WOULD BE PEOPLE OF THE SAME ETHNICITY AS THOSE WHO PEOPLE THINK ARE DANGEROUS BUT WHO HAVE REAL REASON TO BE HERE HE CITES AS EVIDENCE A LIST OF FIVE ARAB TERROR INCIDENTS DISTRIBUTED BY MR DEUTSCH'S OFFICE THAT MADE NO ATTEMPT TO FURTHER IDENTIFY THOSE RESPONSIBLE FOR THE CRIMES AT LEAST FIVE OF THE SIX SUSPECTS CHARGED IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING ENTERED THE US LEGALLY ONE IS A NATURALIZED CITIZEN TWO HAVE PERMANENT RESIDENT STATUS AND MOHAMMED SALAMEH WHO ALLEGEDLY RENTED THE VAN THAT CARRIED THE EXPLOSIVE APPLIED FOR WAS DENIED AND REFILED FOR LEGAL ALIEN STATUS IN A CLASSACTION LAWSUIT THAT IS PENDING SIMILARLY MIR KANSI THE SUSPECT IN ANOTHER RECENT HIGHPROFILE TERRORIST ATTACK THE MURDER OF TWO PEOPLE OUTSIDE CENTRAL INTELLIGENCE AGENCY HEADQUARTERS HAD A VALID BUSINESS VISA WHEN HE CAME TO THE US TWO YEARS AGO THE IMMIGRATION AND NATURALIZATION SERVICE SAID HE LATER APPLIED FOR POLITICAL ASYLUM THOUGH HIS HEARING ON THAT REQUEST HADN'T BEEN SCHEDULED AT THE TIME OF THE SHOOTINGS UNDER THE SUMMARY EXCLUSION LEGISLATION SPONSORED BY SENS D'AMATO AND SIMPSON AND REP MCCOLLUM POLITICALASYLUM SEEKERS WITH NO DOCUMENTS OR APPARENTLY FRAUDULENT ONES COULD BE REJECTED BY A RELATIVELY LOWLEVEL GOVERNMENT WORKER WITH NO ADMINISTRATIVE APPEAL AND STRICT LIMITS ON APPEALS TO THE COURTS APPEALS THAT WOULD BE MOOT IN ANY CASE IF THE ALIEN WAS IMMEDIATELY SENT PACKING MANY OF THESE PEOPLE ARRIVE AT THE NATION'S INTERNATIONAL AIRPORTS RATHER THAN SLIPPING ACROSS THE RIO GRANDE DURING THE NIGHT THEIR CHANCES OF ENTERING THE US WOULD REST ON THEIR ABILITY TO CONVINCE AN IMMIGRATION OFFICER THEY HAVE A CREDIBLE FEAR OF PERSECUTION CURRENTLY THOSE SEEKING ASYLUM HAVE A RIGHT TO A JUDICIAL HEARING EVEN IF THEY ARRIVE AT AMERICA'S GATES WITHOUT PROPER PAPERS BECAUSE THE HEARINGS MAY BE SCHEDULED MANY MONTHS AFTER THEIR ARRIVAL THEY MAY BE ALLOWED TO WORK WHILE WAITING DETERMINATION OF THEIR STATUS ONCE THE HEARING IS SCHEDULED MANY OF THE IMMIGRANTS DON'T SHOW AND PRESUMABLY REMAIN IN THE US ILLEGALLY SENS SIMPSON AND D'AMATO ATTEMPTED TO HAVE THEIR VERSION OF THE MEASURE ATTACHED WITHOUT A HEARING TO THE RECENT VOTER REGISTRATION BILL THAT MANUEVER FAILED AND NOW HEARINGS WILL B HELD ON THE BILL AS A FREESTANDING MEASURE OPPONENTS SAY THE LEGISLATION WOULD RESULT IN LEGITIMATE ASYLUM SEEKERS BEING TURNED AWAY BECAUSE MANY WOULDN'T HAVE PROPER PAPERS OWING TO THE CIRCUMSTANCES THAT LED THEM TO FLEE THEIR COUNTRY SUMMARY EXCLUSION INVITES TRAGIC ERROR BY PREVENTING IMMIGRATION JUDGES AND THE COURTS FROM SCRUTINIZING LIFEANDDEATH ASYLUM DETERMINATIONS MADE BY LOWLEVEL INS OFFICERS SAYS THE AMERICAN IMMIGRATION LAWYERS ASSOCIATION WARREN LEIDEN THE ASSOCIATION'S EXECUTIVE DIRECTOR SAYS THE ANSWER TO QUESTIONABLE CASES IS TO SPEED UP HEARINGS RATHER THAN REJECTING SOME PEOPLE OUTRIGHT IMMIGRANT ADVOCATES SAY GREATER RESOURCES ARE NEEDED TO SPEED THE ADJUDICATION PROCESS AND TO CREATE A RATIONAL DETENTION SYSTEM WHEN LOS ANGELES ENLARGED ITS FACILILTY FOR DETAINING ALIENS INS OFFICIALS NOTE THE PROBLEM OF PERSONS ATTEMPTING TO ENTER WITH FRAUDULENT DOCUMENTS DECREASED SIGNIFICANTLY 9304010090 930401 LEISURE & ARTS OPERA MET'S ARIADNE' IS SHORT ON FANTASY BY MANUELA HOELTERHOFF NEW YORK RICHARD STRAUSS'S BEGUILINGLY ODD ARIADNE AUF NAXOS RECENTLY RETURNED TO THE METROPOLITAN OPERA IN A STATELY HUMORLESS PRODUCTION FEATURING JESSYE NORMAN AS THE STRANDED CRETAN PRINCESS WE OWE THIS GLUM RESUSCITATION TO ELIJAH MOSHINSKY WHOSE CUTRATE ALLWOOD NOGLITTER INTERESTING BALLO IN MASCHERA SO REPELLED SUBSCRIBERS HERE MANY YEARS AGO THAT THE MANAGEMENT REPLACED IT WITH A GAUDY EXTRAVAGANZA AS SOON AS POSSIBLE THIS TIME MR MOSHINSKY WORKING WITH THE DESIGNER MICHAEL YEARGAN TOOK NO CHANCES THERE'S SO MUCH FANCY SCENERY IN THE PROLOGUE IT SPILLS OUT IN FRONT OF THE CURTAIN CLOWNS SILENT AND SAD WERE PUTTING ON THEIR MAKEUP AMID MANY STEAMER TRUNKS AS WE ENTERED THE AUDITORIUM WHAT IS REALITY WHAT IS MAKEBELIEVE THERE WAS PLENTY OF TIME TO SCRATCH OUR HEADS OVER THESE AND OTHER PROFUNDITIES SUCH QUESTIONS ARE THROWN UP SOMEWHAT MORE FRESHLY BY THE WORK ITSELF FINISHED BY STRAUSS IN 1916 TO A LIGHTLY IRONIC TEXT BY HUGO VON HOFMANNSTHAL IN IT THE TRANSFIXING POWER OF LOVE IS GRACEFULLY ENTWINED WITH THE THEATER'S POWER TO DO THE SAME TRANSFORM THE ORDINARY INTO SOMETHING SPECIAL IN THE PROLOGUE A YOUNG COMPOSER TEARS HIS HAIR OUT JUST BEFORE THE PREMIERE OF HIS TRAGIC OPERA ARIADNE IN THE KITSCHQUATSCH PALACE OF THE RICHEST MAN IN VIENNA THE PRIMA DONNA WHO WILL SING ARIADNE IS FUMING THE TENOR HATES HIS WIG AND THE EASILY BORED PATRON IS INSISTING THROUGH HIS SNEERING MAJORDOMO THAT THE OPERA BE PERFORMED SIMULTANEOUSLY WITH A COMEDY WHY HASN'T THIS EXCELLENT IDEA SEEN BROAD IMPLEMENTATION HOW MANY MET GOERS HAVEN'T DREAMED OF THE BARBER OF SEVILLE DROPPING IN ON WOZZECK AFTER AN INTERMISSION WE SEE THE STARTLING RESULT AS A COMMEDIA DELL'ARTE TROUPE LED BY ZERBINETTA PRANCE AROUND THE ABANDONED ARIADNE TRYING TO CHEER HER UP IT IS FUTILE HER TEARS COULD FILL AN OCEAN I CAN IMAGINE A MORE PLAYFUL MELDING OF THE SELFCONSCIOUSLY TRAGIC WITH THE SLYLY COMIC THAN MR MOSHINSKY HAS MANAGED TO STAGE HE DID HAVE ONE WONDERFUL IDEA PUTTING EACH OF THE THREE NYMPHS ON A HIGH PLATFORM WITH THEIR LONG SKIRTS HIDING THE WHEELED AND MANNED CONTRAPTION THAT MOVES THEM FROM PLACE TO PLACE AS NYADE DRYADE AND ECHO ROLLED SILENTLY ABOUT THE STAGE CLUCKING OVER ARIADNE'S FATE THEY TRULY SEEMED OF ANOTHER WORLD WHILE THEIR SIZE EMBODIED WITTILY THE LARGENESS OF HER GRIEF BUT ON THE WHOLE MR MOSHINSKY SEEMED MORE INSPIRED BY THE REALITY OF THE PROLOGUE THAN THE FANTASY OF THE OPERA A MARBLE STAIRCASE CONSIDERABLY GRANDER THAN THE MET'S DOMINATED ONE SIDE OF THE PROLOGUE'S INTERIOR MAKING FOR DRAMATIC ENTRANCES ON THE OTHER SIDE AN UNOBTRUSIVELY ANIMATED CREW PUSHED ARIADNE'S SCENERY ONTO THE PALACE'S STAGE NOT A WHOLE LOT OF IT THOUGH GIVEN THE BAROQUE LAVISHNESS OF THE FIRST SCENE ARIADNE'S ISLAND REALM WAS SADLY UNDERDECORATED LACKING EVEN THE GROTTO WHERE SHE HIDES HER FLIPPERS AND SNORKEL SET HUGE DOORS OPENED AND CLOSED VERY FREQUENTLY TO REVEAL ANOTHER UNEXCITING BACKDROP WITH NO SCENERY TO HIDE BEHIND OR CLIMB OVER THE COMEDIANS SEEMED AS ABANDONED AS ARIADNE EVEN ZERBINETTA THE VOCALLY SPECTACULAR RUTH ANN SWENSON STOOD ABOUT GLUMLY NOT EVEN ONE RERI GRISTMEMORIAL BACK FLIP LATE INTO THE OPERA THE DESPERATE TROUPE PULLED ON A LITTLE CART FOR A MILDLY ENTERTAINING PANTOMIMED DINNER SCENE SPEAKING OF FOOD WHEN DID MS NORMAN EAT HER LAST BAGS OF REESE'S PIECES HOW THIN SHE LOOKED A MERE APPARITION OF HER FORMER SELF AND AN INSPIRATION TO US ALL BUT DID HER VOICE HAVE TO SLENDERIZE AS WELL AT LEAST AT THE THIRD PERFORMANCE I HEARD TOP NOTES OFTEN LACKED SUPPORT AND FOCUS THOUGH SHE SANG UNSTINTINGLY IN THE FINAL ENDLESS LOVE DUET WHICH STRAUSS COULDN'T SEEM TO FINISH PERHAPS HE WISHED TO KILL THE TENOR STRAUSS'S CONTEMPT FOR THE BREED IS WELLDOCUMENTED AND BACCHUS'S MUSIC IS LOUD AND AWKWARDLY POSITIONED EVEN SO THOMAS MOSER MADE A POWERFUL IMPRESSION SINGING WITH A LUSTROUS TONE THAT ALMOST MADE ONE FORGET HIS WEIRD NAUTICAL GARB FOR PUZZLING REASONS MR MOSHINSKY DRESSED HIM UP NOT AS THE CHEERFULLY GARLANDED GOD SPECIFIED BY THE LIBRETTIST BUT IN THE GLOOMY OUTFIT OF THE FLYING DUTCHMAN COMPLETELY UNDERMINING THE FACETIOUSLY EXULTANT MOOD CONCLUDING THE EVENING A NEWCOMER TO THE MET MR MOSER WAS AS MUCH A SURPRISE AS SUSANNE MENTZER WHO IN THE TROUSERS ROLE OF THE COMPOSER OFFERED A CAPTIVATING PORTRAIT OF DISTRACTED GENIUS DOWN TO MESSY BEETHOVENIAN HAIR IDEALLY HER CLEAR MEZZO WOULD EXPAND MORE FREELY INTO THE UPPER REGISTER PARTICULARLY IN THE PAEAN TO HOLY ART WHICH FELL SHORT OF EXALTATION BUT IDEALLY WE WOULD ALSO HAVE HAD A CONDUCTOR OTHER THAN ION MARIN WHO SLID THROUGH THE SCORE WITH LITTLE FEELING FOR THE CLIMACTIC MOMENTS OR THE DELICATE PASSAGES ALONG THE WAY 9304010088 930401 CORRECTIONS & AMPLIFICATIONS UNEMPLOYMENTBENEFIT RECIPIENTS WHO GET A LUMPSUM PENSION PAYMENT FROM A FORMER EMPLOYER AND ARE UNDER AGE 59 1/2 PAY A 10 PENALTY IN ADDITION TO INCOME TAX UNLESS THE MONEY IS ROLLED OVER INTO AN INDIVIDUAL RETIREMENT ACCOUNT OR ANOTHER PENSION PLAN WITHIN 60 DAYS THE TAX REPORT COLUMN YESTERDAY INCORRECTLY INDICATED THAT THOSE OVER 59 1/2 PAY THE PENALTY TOPS APPLIANCE CITY INC APPOINTED WILLIAM J TENNANT SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IN YESTERDAY'S WHO'S NEWS COLUMN IT WAS INCORRECTLY STATED THAT MR TENNANT HAD BEEN NAMED CHIEF EXECUTIVE OFFICER 9304010087 930401 MORTGAGEBACKED BONDS FALL SHORT IN FLURRY OF ISSUES BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHILE THE REST OF THE BOND MARKET WAS FLOODED WITH A RECORD SUPPLY OF NEW ISSUES THE NUMBER OF NEW MORTGAGEBACKED BOND OFFERINGS SLUMPED AS INVESTORS BACKED AWAY IT WAS A SURPRISING REVERSAL FOR MORTGAGE SECURITIES ONCE THE FASTESTGROWING SECTOR OF THE BOND MARKET BUT SOME ANALYSTS BELIEVE THE LULL IS ONLY TEMPORARY THE VOLUME OF NEW MORTGAGEBACKED DEBT SOLD DURING THE FIRST QUARTER TOTALED 971 BILLION DOWN 6 FROM 1034 BILLION IN 1992'S FIRST QUARTER HOWEVER THE TOTAL WAS UP FROM 664 BILLION IN THE FOURTH QUARTER ACCORDING TO STATISTICS COMPILED BY SECURITIES DATA CO MORTGAGE SECURITIES ARE POOLS OF MORTGAGES PACKAGED INTO BONDS FOR SALE TO INVESTORS THE DECLINE FROM A YEAR AGO IN NEW MORTGAGEBACKED OFFERINGS LARGELY REFLECTED DWINDLING DEMAND BY INSTITUTIONAL INVESTORS THEY FEAR THAT THEIR MORTGAGE BONDS WILL BE CALLED AWAY AS HOMEOWNERS RUSH TO REFINANCE THEIR MORTGAGES IN RECORD NUMBERS INVESTMENT BANKERS AND BOND TRADERS SAY INSTITUTIONAL INVESTORS HAVE BEEN SELLING LARGE AMOUNTS OF MORTGAGEBACKED SECURITIES AND REPLACING THEM IN THEIR PORTFOLIOS WITH GOVERNMENT BONDS AND CORPORATE BONDS WHEN HOMEOWNERS REFINANCE THEIR MORTGAGES AT LOWER RATES THEY PAY OFF THEIR OLDER HIGHERRATE HOME LOANS THAT MEANS THAT OWNERS OF MORTGAGEBACKED BONDS GET THEIR MONEY BACK SOONER THAN EXPECTED AND HAVE TO REINVEST IT AT CURRENT LOWER INTEREST RATES GIVEN THE MOVEMENT IN THE MARKET AND CONCERNS ABOUT HIGH LEVELS OF PREPAYMENTS THERE WAS DURING THE FIRST QUARTER A SHIFT TOWARD NONMORTGAGE PAPER SAID WARREN SPECTOR A SENIOR MANAGING DIRECTOR AT BEAR STEARNS & CO WHICH UNDERWROTE 846 BILLION OF MORTGAGE SECURITIES IN THE FIRST QUARTER PRICES OF MOST BONDS RISE WHEN INTEREST RATES FALL BUT BECAUSE OF PREPAYMENTS PRICES OF MORTGAGEBACKED BONDS ARE ADVERSELY AFFECTED BY SHARP DECLINES IN INTEREST RATES SUCH AS THOSE WHICH OCCURRED EARLY THIS YEAR I HAVE NOT OWNED MORTGAGEBACKED SECURITIES ALL THIS YEAR BECAUSE MORTGAGE BONDS UNDERPERFORM TREASURY BONDS IN A DECLINING INTERESTRATE ENVIRONMENT SAID ROBERT ANDRES A MANAGING DIRECTOR AT MONEY MANAGER MARTINDALE & ANDRES INC GLENN MURPHY CHIEF INVESTMENT OFFICER OF TRAVELERS ASSET MANAGEMENT A UNIT OF TRAVELERS INSURANCE CO ALSO HAS LOST HIS APPETITE FOR MORTGAGE SECURITIES LAST YEAR PEOPLE WERE CONCERNED ABOUT CREDIT RISK SO THEY BOUGHT MORE MORTGAGES THAN CORPORATE BONDS MR MURPHY SAID BUT NOW HE SAYS EVERYBODY IS WORRIED ABOUT PREPAYMENT RISK SO THEY'D RATHER BE IN TREASURY BONDS OR CORPORATE BONDS KIDDER PEABODY & CO CONTINUED TO DOMINATE UNDERWRITING ACTIVITY IN THE MORTGAGE MARKET WITH A 191 MARKET SHARE LEHMAN BROTHERS INC TOOK A DISTANT SECOND PLACE WITH 102 OF THE MARKET AND MERRILL LYNCH & CO RANKED THIRD WITH 101 SALOMON BROTHERS INC WHICH RANKED SECOND A YEAR AGO WITH 125 OF THE MARKET FELL TO FOURTH PLACE IN THE LATEST QUARTER WITH 91 OF THE MARKET AS YIELDS ON MORTGAGEBACKED SECURITIES BEGIN TO LOOK ATTRACTIVE RELATIVE TO OTHER FIXEDINCOME SECURITIES AND INTEREST RATES STOP FALLING SOME ANALYSTS BELIEVE THAT INVESTORS' APPETITE FOR THE SECURITIES WILL IMPROVE THERE SHOULD BE A LARGE SUPPLY OF NEW MORTGAGE BONDS AVAILABLE SAY INVESTMENT BANKERS WHO NOTE THAT NEW MORTGAGE APPLICATIONS BY HOMEOWNERS ARE RISING RAPIDLY FOLLOWING THE SHARP DECLINE IN MORTGAGE INTEREST RATES INDEED MANY ANALYSTS BELIEVE THAT ISSUANCE OF MORTGAGEBACKED SECURITIES COULD EXPLODE IN THE SECOND QUARTER WE ARE CURRENTLY IN THE TROUGH OF TWO REFINANCING WAVES SAID JONATHAN GRAY A MORTGAGE SECURITIES ANALYST AT SANFORD BERNSTEIN & CO AT THE MOMENT APPLICATIONS FOR MORTGAGES ARE SOARING TO RECORD LEVELS HE SAID AND THAT SHOULD QUICKLY TRANSLATE INTO A FLOOD OF NEW MORTGAGE SECURITIES WITH MORTGAGE RATES NOW HOVERING AT ABOUT 75 THE LOWEST LEVELS IN ABOUT 20 YEARS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION IS PREDICTING RECORD MORTGAGE ORIGINATIONS OF 840 BILLION IN 1993 THE AGENCY ESTIMATES THAT ABOUT HALF THAT AMOUNT WILL FIND ITS WAY INTO POOLS PACKAGED AS MORTGAGEBACKED SECURITIES BUT WHILE GROWTH IN THE MORTGAGEBACKED SECURITIES MARKET RECEDED ISSUANCE OF NEW ASSETBACKED BONDS SOARED THESE SECURITIES ARE CREATED BY PACKAGING CREDITCARD RECEIVABLES AUTOMOBILE LOANS HOMEEQUITY LOANS AND OTHER ASSETS INTO SECURITIES DURING THE FIRST QUARTER NEW ISSUES OF ASSETBACKED SECURITIES TOTALED 124 BILLION UP 38 PERCENT FROM 90 BILLION IN THE FIRST QUARTER A YEAR EARLIER MORE THAN 7 BILLION OF THE ASSETBACKED SECURITIES ISSUED IN THE FIRST QUARTER OF THIS YEAR WERE BACKED BY AUTOMOBILE LOANS MERRILL LYNCH EDGED OUT FIRST BOSTON CORP AS THE NO 1 UNDERWRITER OF ASSETBACKED SECURITIES LEADING 13 OFFERINGS TOTALING ABOUT 457 BILLION FOR A 369 MARKET SHARE 9304010086 930401 OTC FOCUS MEDICAL STOCKS HELP LIFT INDEX 057 AMID PORTFOLIO SHIFTING AT QUARTER'S END BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MEDICALRELATED STOCKS GAINED MORE MOMENTUM FOR THE SECOND CONSECUTIVE DAY CARRYING THE OVERTHECOUNTER MARKET HIGHER IN HEAVY TRADING INVESTORS CONTINUED SHORING UP THEIR PORTFOLIOS ON THE QUARTER'S LAST DAY WHICH ADDED TO THE SESSION'S RALLY THE NASDAQ COMPOSITE INDEX JUMPED 388 POINTS OR 057 TO 69013 AFTER HAVING RISEN MORE THAN SIX POINTS EARLIER IN THE SESSION OTC PRICES CLIMBED STEADILY FOR MOST OF THE DAY BUT GAVE BACK SOME GAINS NEAR THE CLOSE ADVANCERS OUTPACED DECLINERS 1160 TO 1108 TOTAL NATIONAL MARKET SYSTEM VOLUME CLIMBED TO 217810000 SHARES FROM 178130000 TUESDAY MARKET WATCHERS SAID A RALLY IN THE NASDAQ MARKET IS TYPICAL AT THE END OF THE QUARTER AS INDIVIDUAL AND INSTITUTIONAL INVESTORS REASSESS THEIR HOLDINGS WE'RE STILL SEEING A LOT OF WINDOWDRESSING HERE SAID GEORGE SCHOPPER MANAGER OF OTC TRADING AT RODMAN & RENSHAW HE NOTED THAT NASDAQ HAS OUTPERFORMED THE LARGER MARKET IN THE PAST COUPLE OF SESSIONS TRADING ON THE BIG BOARD WAS CHOPPIER WITH THE DOW JONES INDUSTRIAL AVERAGE FALLING NEAR THE CLOSING BELL AFTER BEING HIGHER FOR MOST OF THE SESSION TRADERS SAID THE LATE DECLINE WAS ATTRIBUTABLE IN PART TO PROGRAM TRADING AND TO UNWINDING ACTIVITIES RELATED TO THE EXPIRATION OF STOCK INDEX OPTIONS TRADED ON THE AMERICAN STOCK EXCHANGE AND THE CHICAGO BOARD OPTIONS EXCHANGE THE OPTIONS EXPIRE ON THE FIRST DAY OF THE CALENDAR QUARTER THE DOW JONES INDUSTRIALS GAVE UP 2216 POINTS OR 064 TO FINISH AT 343511 BUT THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 024 POINT OR 010 TO 24942 GRIFFITH PECK SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS SAID WE HAD SOME OF THE BLUE CHIPS ON THE BIG BOARD SELLING OFF TODAY BUT WE SAW A RALLY IN THE SECONDARY STOCKS THIS AFTERNOON AS SOME OF THE BIOTECHS AND TECHNOLOGY ISSUES HAD A BIT OF A BOUNCE LEHMAN BROTHERS UPGRADED SOME HEALTH MAINTENANCE ORGANIZATION STOCKS YESTERDAY HEALTH CARE AND BIOTECH STOCKS REACTED FAVORABLY THROUGHOUT THE SESSION TO NEWS LATE TUESDAY THAT A TOP GOVERNMENT HEALTH CARE ADVISER CAST DOUBT ON THE IDEA THAT THE CLINTON ADMINISTRATION MAY USE PRICE CONTROLS TO CURB RISING COSTS ALTHOUGH PRESIDENT CLINTON HAS MADE NO FIRM DECISION ABOUT PRICE CONTROLS THE OFFICIAL'S COMMENTS WERE ENOUGH TO IGNITE THE SECTOR WHICH HAS LAGGED FOR WEEKS ON UNCERTAINTY SURROUNDING THE PLANNED OVERHAUL OF THE NATION'S HEALTH CARE SYSTEM OBSERVERS EXPECT TODAY TO BE A LITTLE QUIETER AS THE NEW QUARTER GETS UNDER WAY AND MARKET PLAYERS WAIT FOR THE LABOR DEPARTMENT'S EMPLOYMENT REPORT TO BE RELEASED TOMORROW AND EVERYONE WILL BE WATCHING HOW THE BOND MARKET REACTS TO THE GOVERNMENT'S JOB FIGURES THE TREASURY'S BELLWETHER 30YEAR BOND LOST 1/4 POINT YESTERDAY SENDING ITS YIELD TO 693 AMONG BIOTECH AND HEALTH CARE STOCKS AMGEN WAS 3/4 HIGHER AT 37 3/4 TAKECARE WAS UP 1 1/2 AT 36 1/4 OXFORD HEALTH PLANS JUMPED 3 1/2 TO 40 AND MID ATLANTIC MEDICAL EDGED UP 7/8 TO 14 5/8 LEHMAN BROTHERS UPGRADED US HEALTHCARE AND PACIFICARE HEALTH SYSTEMS TO BUY FROM OUTPERFORM US HEALTHCARE ROSE 1 1/2 TO 46 1/4 AND PACIFICARE CLIMBED 2 1/2 TO 32 1/2 THE MOST ACTIVELY TRADED ISSUE HEALTHCARE COMPARE HOWEVER PLUNGED 5 5/8 TO 12 7/8 AFTER ANNOUNCING LATE TUESDAY THAT IT ISN'T COMFORTABLE WITH ANALYSTS' 1993 EXPECTATIONS OF MORE THAN 110 A SHARE IN EARNINGS AND REVENUE OF AT LEAST 160 MILLION MONTGOMERY SECURITIES BEAR STEARNS AND KIDDER PEABODY ALL DOWNGRADED THE DOWNERS GROVE ILLBASED PROVIDER OF HEALTH CARE UTILIZATION REVIEW AND COSTMANAGEMENT SERVICES AMONG TRANSPORTATION ISSUES COMAIR HOLDINGS DECLINED 1 1/2 TO 37 3/4 AFTER AN ALEX BROWN ANALYST DOWNGRADED THE CINCINNATIBASED REGIONAL AIRLINE'S SHARES TO BUY FROM STRONG BUY BASED ON VALUATION THE STOCK PRICE REACHED THE FIRM'S 38 PRICE TARGET YESTERDAY MORNING GYMBOREE CORP OF BURLINGAME CALIF SURGED 11 1/2 TO 31 1/2 ON HEAVY VOLUME AN INITIAL OFFERING OF 2165000 COMMON SHARES OF THE SPECIALTY RETAILER WAS PRICED AFTER THE CLOSE TUESDAY AT 20 EACH COMPTRONIX A GUNTERSVILLE ALA PROVIDER OF CONTRACT MANUFACTURING SERVICES ADDED 7/8 TO 6 5/8 THE COMPANY REPORTED A 1992 LOSS OF 27 CENTS A SHARE BEFORE TAKING 163 A SHARE IN CHARGES COMPARED WITH A RESTATED LOSS OF 34 CENTS A SHARE FOR 1991 THE TECHNOLOGY SECTOR SHOWED SOME BRIGHT SPOTS BUT ENDED MIXED MICROSOFT ADDED 1 1/2 TO 92 1/2 AUTODESK ADVANCED 2 1/4 TO 43 1/2 AND CISCO SYSTEMS WENT UP 1 TO 44 3/4 NOVELL FELL 1/8 TO 33 AMERITECH SAID THAT IT HAS FORMED AN ALLIANCE WITH THE SOFTWARE COMPANY THROUGH WHICH RESELLERS OF NOVELL PRODUCTS WILL BE ABLE TO OFFER AMERITECH DATA SERVICES TO CONNECT WIDEAREA NETWORKING PRODUCTS APPLE COMPUTER LOST 3/4 TO 51 1/2 THE CUPERTINO CALIF COMPUTER COMPANY IS REPORTEDLY IN TALKS WITH PHILIPS ELECTRONICS OVER COOPERATING ON EXPANDED APPLICATIONS OF THE DUTCH FIRM'S INTERACTIVE COMPACT DISK TECHNOLOGY ALSO A MARKET RESEARCH COMPANY SAID APPLE'S SALES JUMPED IN JAPAN LAST YEAR DESPITE A SHRINKING MARKET MAKING IT THE COUNTRY'S THIRDLARGEST PC VENDOR ALDUS SHED 1/4 TO 19 1/2 THE SOFTWARE COMPANY SAID IT HAS SIGNED AN AGREEMENT WITH COMPAQ COMPUTER TO GIVE COMPAQ DIRECTPLUS MARKETING RIGHTS TO ITS PAGEMAKER DESKTOP PUBLISHING SOFTWARE 9304010085 930401 COAL INDUSTRY IS EXPECTED TO WIN VICTORY IN TREASURY'S PROPOSAL FOR ENERGY TAX BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A BIG VICTORY FOR THE COAL INDUSTRY THE CLINTON ADMINISTRATION IS EXPECTED TO PROPOSE SWITCHING THE POINT OF COLLECTION FOR ITS ENERGY TAX FROM THE MINE TO THE ELECTRIC UTILITY THE CHANGE IS LIKELY TO BE ANNOUNCED WITHIN THE NEXT FEW DAYS WHEN THE TREASURY RELEASES ADDITIONAL DETAILS OF THE BROADBASED LEVY ON ENERGY SHIFTING TO THE UTILITY MEANS THAT COAL WOULD BE TAXED AT ROUGHLY THE SAME POINT IN THE PRODUCTION PROCESS AS NATURAL GAS ACCORDING TO CLINTON ADVISERS TO ENSURE THAT THE TAX IS ULTIMATELY PAID BY CONSUMERS THEREBY PROMOTING CONSERVATION THE TREASURY IS LOOKING FOR A WAY TO INDUCE STATE REGULATORS TO PASS ALONG THE LEVY ONE STRONG POSSIBILITY IS THAT THE FEDERAL GOVERNMENT WOULD WITHHOLD CERTAIN TAX BREAKS FOR UTILITIES UNLESS THE REGULATORS APPROVED A PASSTHROUGH BECAUSE THE TAX BREAKS HELP HOLD DOWN RATES FOR CUSTOMERS IT'S IN THE INTEREST OF THE REGULATORS TO SEE THAT THE UTILITIES TAKE ADVANTAGE OF THEM IN ITS ORIGINAL PLAN RELEASED IN FEBRUARY THE TREASURY HAD SAID THE ENERGY TAX WOULD BE IMPOSED ON COAL AT THE MINE MOUTH BUT INDUSTRY EXECUTIVES MADE A PERSUASIVE CASE IN MEETINGS WITH ADMINISTRATION OFFICIALS THAT SUCH AN APPROACH WOULD BE IMPRACTICAL AND THEY URGED THAT THE UTILITY BE CONSIDERED AS AN ALTERNATIVE FIRST THEY ARGUED IT ISN'T STANDARD PRACTICE TO SAMPLE COAL AT THE MINE THIS MEANS THAT MANY COAL COMPANIES WOULD HAVE TO INSTALL EXPENSIVE EQUIPMENT TO CALCULATE THE ENERGY TAX IN ADDITION EXISTING TAXES ON COAL ROYALTIES SEVERANCE TAXES BLACK LUNG TAXES AND STATE PRODUCTION TAXES ARE TYPICALLY BASED ON DOLLAR VALUE OR ON TONNAGE THE ENERGY TAX WHICH IS TO BE BASED ON THE HEAT CONTENT OF FUEL AS MEASURED IN BRITISH THERMAL UNITS WOULD THEREFORE RESULT IN AN UNINTENDED COMPOUNDING OF THE PRICE OF COAL FURTHERMORE A TAX COLLECTED AT THE MINE WOULDN'T AUTOMATICALLY BE PASSED ON TO COAL CUSTOMERS AND IN TURN ENDUSERS OF ENERGY MANY CONTRACTS ACCORDING TO THE NATIONAL COAL ASSOCIATION DO NOT ALLOW EITHER THE TAX OR RELATED COSTS TO BE RECOVERED BY THE PRODUCER OFFICIALS AT THE COAL ASSOCIATION THE INDUSTRY'S MAIN TRADE GROUP SAID YESTERDAY THAT THEY HADN'T HEARD ABOUT ANY CHANGE IN THE ADMINISTRATION'S ORIGINAL PLAN BUT CLINTON AIDES INDICATED THAT BARRING ANY LASTMINUTE REVERSAL THE SHIFT TO THE UTILITY WOULD OCCUR ONE ADVANTAGE OF THE NEW ARRANGEMENT FOR THE GOVERNMENT IS THAT IT SHOULD BE EASIER TO COLLECT THE TAX THE COAL ASSOCIATION SAYS THERE ARE ONLY ABOUT 150 COALBURNING ELECTRIC UTILITIES COMPARED WITH SOME 3000 MINES THERE MAY BE SOME POLITICAL DIVIDENDS AS WELL A NUMBER OF POWERFUL LAWMAKERS INCLUDING SEN ROBERT BYRD D WVA HAVE COAL INTERESTS IN THEIR HOME STATES 9304010084 930401 LAW WORTHEN BANKING SAYS FED PROBES TIES IN ARKANSAS BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL LITTLE ROCK ARK WORTHEN BANKING CORP SAID THE FEDERAL RESERVE BOARD IS INVESTIGATING THE BANK HOLDING COMPANY'S RELATIONSHIP WITH ARKANSAS' POWERFUL STEPHENS FAMILY WORTHEN SAID THE BOARD DISCLOSED ITS INVESTIGATION IN CONNECTION WITH ITS APPROVAL OF WORTHEN'S PREVIOUSLY ANNOUNCED APPLICATION TO MERGE UNION OF ARKANSAS CO WITH A WORTHEN UNIT CURT BRADBURY WORTHEN'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WELCOMES THE INVESTIGATION AS AN OPPORTUNITY TO PUT TO REST ISSUES THAT HAVE BEEN THE SUBJECT OF SPECULATION AND INNUENDO FOR SOME TIME MR BRADBURY WOULDN'T SAY WHAT THOSE ISSUES ARE BUT THEY PROBABLY REVOLVE AROUND THE COMPANY'S CLOSE TIES WITH STEPHENS INC A LITTLE ROCK INVESTMENT FIRM OWNED BY THE STEPHENS FAMILY A MAJOR FORCE IN ARKANSAS BUSINESS AND POLITICAL CIRCLES STEPHENS INC OWNS A 38 STAKE IN WORTHEN AND WORTHEN'S MAIN BRANCH HAS COMPUTER TERMINALS THAT PERMIT CUSTOMERS TO OPEN TRADING ACCOUNTS AT THE INVESTMENT FIRM FURTHER IN A PAGE ONE ARTICLE THE WALL STREET JOURNAL REPORTED THAT LAST YEAR THE BANK PERMITTED JACKSON STEPHENS THE FAMILY PATRIARCH AND A FAMILY COMPANY TO BORROW AT A QUARTER PERCENTAGE POINT BELOW THE PREVAILING RATES AND PAID A VARIETY OF FEES TO THE STEPHENS COMPANIES MR BRADBURY SAID HE IS CONFIDENT WORTHEN HASN'T VIOLATED ANY FEDERAL BANKING LAWS WHICH MANDATE A SEPARATION OF BANKING AND SECURITIES SERVICES IF THERE WAS ANY OVERWHELMING CONCERN BY THE FED OR ANY VIOLATION IN EXISTENCE NOW THEY WOULDN'T HAVE APPROVED IT HE SAID REFERRING TO THE MERGER APPLICATION A COMPANY SPOKESMAN ALSO NOTED THAT THE ACQUISITION OF UNION OF ARKANSAS FOR 46 MILLION COMMON SHARES VALUED AT 1254 MILLION WOULD REDUCE THE STEPHENS FAMILY'S OWNERSHIP OF WORTHEN TO 29 A WORTHEN SPOKESMAN SAID THE FED HAS BEEN SCRUTINIZING ITS MERGER WITH UNION OF ARKANSAS SINCE IT WAS ANNOUNCED IN JUNE 1992 AND ALONG WITH THE APPLICATION THE STEPHENS FAMILY OWNERSHIP WORTHEN SAID THAT APPROVAL OF THE MERGER WAS GIVEN IN RELIANCE UPON REPRESENTATIONS AND COMMITMENTS MADE TO THE BOARD BY WORTHEN BANKING CORP STEPHENS GROUP INC AND STEPHENS FAMILY MEMBERS TO THE EFFECT THAT STEPHENS GROUP INC AND ITS SUBSIDIARIES DO NOT AND WILL NOT EXERT CONTROL OVER THE MANAGEMENT OR POLICIES OF WORTHEN REPRESENTATIVES OF THE STEPHENS FAMILY COULDN'T BE REACHED FOR COMMENT MR BRADBURY SAID HE KNEW NOTHING MORE ABOUT THE SCOPE OF THE BOARD'S INVESTIGATION BUT SAID THE PROBE DOESN'T APPEAR TO BE CONNECTED TO A SHAREHOLDER LAWSUIT FILED EARLIER THIS YEAR THAT CHALLENGED WORTHEN'S ACQUISITION OF STEPHENS DIVERSIFIED LEASING INC A LITTLE ROCK LEASING COMPANY OWNED PRIMARILY BY THE STEPHENS FAMILY MR BRADBURY SAID HE BELIEVES THE BOARD'S INVESTIGATION PREDATED THE LAWSUIT 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 9304010083 930401 BUSINESS BRIEF WANG LABORATORIES INC COMPUTER FIRM SELLS STAKE OF 70 IN TAIWAN FACILITY WANG LABORATORIES INC SAID IT SOLD ITS 70 INTEREST IN A TAIWAN MANUFACTURING PLANT TO A GROUP OF TAIWAN INVESTORS IN EXCHANGE FOR FORGIVENESS OF ABOUT 150 MILLION IN DEBT WANG ALSO TRANSFERRED A 51 INTEREST IN A SALES AND MARKETING SUBSIDIARY IN THAT COUNTRY TO THE INVESTOR GROUP AS PART OF THE TRANSACTION THE TAIWAN INVESTOR GROUP HAD ACQUIRED A 30 STAKE IN THE MANUFACTURING FACILITY IN 1990 THE LOWELL MASSBASED COMPUTER AND SOFTWARE CONCERN WHICH IS SEEKING TO EMERGE FROM BANKRUPTCYCOURT PROCEEDINGS SAID THE SALE IS PART OF AN EFFORT TO CURTAIL ITS MANUFACTURING OPERATIONS AND FOCUS ITS RESOURCES ON IMAGING AND RELATED OFFICE SOFTWARE 9304010082 930401 INTERNATIONAL BRIEF BRITISH AIRWAYS PLC CARRIER TO PAY SHAREHOLDERS SECONDINTERIM DIVIDEND BRITISH AIRWAYS PLC SAID IT WILL PAY A 754PENCE 11 CENTS SECONDINTERIM DIVIDEND FOR THE FINANCIAL YEAR THAT ENDED WEDNESDAY INSTEAD OF A FINAL DIVIDEND THE DIVIDEND ADDED TO THE UK CARRIER'S 306PENCE FIRSTINTERIM DIVIDEND WILL CREATE A 1060PENCE FULLYEAR PAYMENT UP 41 FROM LAST YEAR BRITISH AIRWAYS SAID THE SECONDINTERIM DIVIDEND WILL BE PAID APRIL 5 TO BEAT AN APRIL 6 EFFECTIVE DATE FOR CHANGES IN THE UK ADVANCE CORPORATE TAX ON DIVIDENDS A FINAL DIVIDEND WOULD HAVE BEEN PAID LATER THAN APRIL 6 AND THE SAME SIZE PAYMENT WOULD HAVE BEEN WORTH LESS TO SHAREHOLDERS BECAUSE A TAX CREDIT ON DIVIDENDS WILL FALL TO 20 FROM 25 THE SAME MOVE WAS MADE BY UK PACKAGING GROUP BOWATER PLC OTHER UK COMPANIES SUCH AS BA T INDUSTRIES PLC AND UNILEVER PLC HAVE ADOPTED OTHER METHODS OF CUSHIONING THE TAX CHANGE'S IMPACT ON SHAREHOLDERS 9304010081 930401 BUSINESS BRIEF CHRYSLER CORP BUYER INCENTIVES EXTENDED FOR CERTAIN 199293 VEHICLES CHRYSLER CORP SAID IT IS EXTENDING CONSUMER INCENTIVES RANGING FROM 500 TO 2000 ON ITS 199293 MODEL CARS AND TRUCKS THE CASH INCENTIVES THAT WERE DUE TO EXPIRE MARCH 31 WILL BE EXTENDED THROUGH JUNE 30 FOR SOME MODELS INCENTIVES WILL RUN THROUGH SEPT 30 IN ADDITION A 500 REBATE FOR MINIVAN BUYERS THAT ARE 50 YEARS OF AGE OR OLDER HAS BEEN ADDED THE REBATE WILL RUN THROUGH JUNE 15 AS AN ALTERNATIVE TO THE CASH INCENTIVES CHRYSLER IS ALSO OFFERING SPECIAL FINANCING TERMS RANGING FROM 29 FOR TERMS OF AS LONG AS 24 MONTHS TO 69 ON A 60MONTH CONTRACT THE AUTO MAKER IS ALSO EXTENDING LEASE OFFERS RANGING FROM 5 FOR 12 TO 24 MONTH CONTRACTS TO 8 FOR 24 TO 36 MONTH CONTRACTS 9304010080 930401 BOEING'S SENIOR DEBT IS DOWNGRADED BY MOODY'S WHICH CITES AIRLINES' WOES BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL MOODY'S INVESTORS SERVICE INC CITING CONTINUED AIRLINEINDUSTRY WEAKNESS DOWNGRADED BOEING CO'S SENIOR DEBT RATING FOR THE FIRST TIME IN THE AEROSPACE COMPANY'S HISTORY IN LOWERING THE RATING TO SINGLEA1 FROM DOUBLEA3 THE RATINGS AGENCY SAID IT BELIEVED BOEING'S CREDIT QUALITY WILL REMAIN BELOW HISTORICAL LEVELS OVER THE INTERMEDIATE TERM DUE TO AN UNFAVORABLE OPERATING OUTLOOK CONTINUING HEAVY INVESTMENTS RELATED TO ITS NEW 777 JETLINER AND GROWING DEMAND FOR CUSTOMER FINANCING FROM THE AILING AIRLINE INDUSTRY MOODY'S ALSO DOWNGRADED BOEING'S SECURED PASSTHROUGH CERTIFICATES DEBT SECURED BY BOEING JETLINERS TO DOUBLEA3 FROM DOUBLEA2 A BOEING SPOKESMAN SAID COMPANY OFFICIALS WERE DISAPPOINTED BY THE RATINGS DOWNGRADE WHICH HE SAID WAS THE FIRST IN THE COMPANY'S 76YEAR HISTORY EARLIER LAST MONTH STANDARD & POOR'S CORP AFFIRMED BOEING'S DOUBLEA SENIOR DEBT RATING BUT REVISED THE RATING OUTLOOK TO NEGATIVE FROM STABLE CITING REASONS SIMILAR TO MOODY'S MOODY'S SAID ITS RATING ON ABOUT 17 BILLION IN LONGTERM DEBT REFLECTED ITS VIEW THAT THE COMMERCIAL AIRCRAFT MARKET WILL STAY WEAK UNTIL 1995 AND THAT THE RECOVERY WILL BE SLOWER AND LESS VIGOROUS THAN IN PREVIOUS CYCLES TASSOS PHILIPPAKOS A MOODY'S ANALYST SAID HE EXPECTS AIRCRAFT DELIVERIES TO CONTINUE DROPPING THROUGH 1994 UNTIL THE SURPLUS OF AIRCRAFT IN THE MARKET IS ABSORBED AND UNTIL PERFORMANCE OF THE AIRLINE INDUSTRY OVERALL IMPROVES I DON'T SEE AN INCREASED NUMBER OF DELIVERIES HE SAID MOODY'S SAID ITS SOLE RATING ACTION INVOLVING THE SEATTLEBASED AEROSPACE CONCERN IN THE 12 YEARS COVERED BY ITS RECORDS WAS AN UPGRADE IN 1986 THIS JANUARY MOODY'S PLACED BOEING'S SENIOR DEBT ON REVIEW FOR POSSIBLE DOWNGRADE FOR THE LONG TERM BOEING'S SALES CASH FLOWS AND FINANCIAL CONDITION SHOULD RECOVER ONCE THE AIRCRAFT MARKET REVIVES BUT WON'T REACH THE EXTREMELY STRONG LEVELS OF PAST YEARS MOODY'S PREDICTED IT NOTED THAT THE COMPANY'S FINANCIAL CONDITION AND OVERALL CREDIT QUALITY WOULD NEVERTHELESS REMAIN STRONG THROUGHOUT THE CURRENT INDUSTRY SLUMP THIS YEAR BOEING ANNOUNCED IT WAS SLASHING PRODUCTION RATES ON ITS 737 757 767 AND JUMBO 747 JET MODELS BECAUSE OF SLACKENED DEMAND AND ELIMINATING 28000 JOBS OR 20 OF ITS WORK FORCE THROUGH 1994 LAST MONTH THE COMPANY CUT ITS LONGRANGE DEMAND FORECAST FOR LARGE PLANES 16 AND SCALED BACK DELIVERY PROJECTIONS FOR ALL PLANES THROUGH THE YEAR 2010 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY BOEING WAS QUOTED AT 35 DOWN 625 CENTS 9304010079 930401 YIELDS ROSE SLIGHTLY ON THE MONEY FUNDS IN THE LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS CREPT UP MARGINALLY IN THE LATEST WEEK BUT INVESTORS PULLED OUT BILLIONS OF DOLLARS THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS ROSE TO 270 FROM 268 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 574 TAXABLE FUNDS TRACKED BY THE NEWSLETTER PLUMMETED BY 1882 BILLION TO 47008 BILLION MOST OF THAT OUTFLOW 1522 BILLION WAS FROM 150 FUNDS OPEN ONLY TO INSTITUTIONS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID MUCH OF THE INSTITUTIONAL MONEY PROBABLY WENT INTO THE STOCK MARKET WHICH STABILIZED IN THE PAST FEW DAYS FOLLOWING UNCERTAINTY CAUSED BY EVENTS IN RUSSIA AND OTHER FACTORS HE ADDED THAT INDIVIDUAL INVESTORS TYPICALLY MAKE WITHDRAWALS FROM MONEY FUNDS AT THIS TIME OF YEAR TO PAY TAXES THE TINY INCREASE IN YIELDS WAS THE FIRST IN FOUR WEEKS MR FRANK PREDICTED THAT YIELDS WILL BOUNCE AROUND NEAR CURRENT LEVELS AT LEAST FOR THE NEXT COUPLE OF MONTHS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 60 DAYS FOR THE THIRD WEEK IN A ROW A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT A MAJOR CHANGE IN SHORTTERM INTEREST RATES ANY TIME SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS INCHED UP TO 266 FROM 265 MONEY FUND REPORT SAID THE AVERAGE 30DAY SIMPLE YIELD REMAINED AT 267 AND THE AVERAGE 30DAY COMPOUND YIELD SLIPPED TO 270 FROM 271 YIELDS ON TAXFREE MONEY FUNDS ROSE WHILE ASSETS WERE LITTLE CHANGED THE AVERAGE SEVENDAY COMPOUND YIELD FOR EXAMPLE JUMPED TO 202 FROM 192 THE NEWSLETTER REPORTED THE LATEST AVERAGE IS EQUIVALENT TO A TAXABLE 281 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 293 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 315 TAXFREE FUNDS TRACKED BY MONEY FUND REPORT ROSE BY 335 MILLION TO 10224 BILLION AVERAGE MATURITY OF THE TAXFREE FUNDS' INVESTMENTS SHORTENED BY TWO DAYS TO 50 DAYS 9304010078 930401 PILOT ERROR OTHER LAPSES CITED IN TWA JET CRASH WASHINGTON AP FEDERAL INVESTIGATORS SAID PILOT ERROR MAINTENANCE PROBLEMS AND FAULTY EQUIPMENT CAUSED A TRANS WORLD AIRLINES INC JETLINER TO CRASH AND BURN DURING AN ABORTED TAKEOFF FROM NEW YORK'S KENNEDY AIRPORT LAST JULY ONE PERSON WAS SERIOUSLY HURT AND NINE OTHERS SUFFERED MINOR INJURIES IN THE CRASH IN ITS REPORT THE NATIONAL TRANSPORTATION SAFETY BOARD LAID MUCH OF THE BLAME FOR THE CRASH ON POOR COORDINATION BETWEEN THE CAPTAIN OF THE LOCKHEEDBUILT L1011 AND THE FIRST OFFICER WHO WAS AT THE CONTROLS WHEN IT APPEARED THE PLANE WASN'T GOING TO FLY INVESTIGATORS SAID WARNINGS OF A POSSIBLE STALL WERE FALSE THE JET WHICH WAS A LITTLE BELOW ITS MAXIMUM TAKEOFF WEIGHT BUT WELL ABOVE THE ALLOWABLE LANDING WEIGHT GOT ABOUT 15 FEET OFF THE GROUND BEFORE THE CAPTAIN DECIDED TO ABORT THE TAKEOFF 9304010077 930401 STUDY FINDS UNFAIRNESS IN SEXDISEASE PROGRAMS NEW YORK A MEDICAL STUDY HAS FOUND THAT WHILE WOMEN ARE MORE SUSCEPTIBLE THAN MEN TO INFECTION BY AND LONGTERM CONSEQUENCES FROM SEXUALLY TRANSMITTED DISEASES MOST FEDERAL FUNDING TO FIGHT SUCH DISEASES GOES TOWARD PROGRAMS FOR MEN ACCORDING TO THE ALAN GUTTMACHER INSTITUTE A NEW YORKBASED HEALTH RESEARCH GROUP THE FEDERAL PROGRAM CHANNELS MOST OF ITS FUNDING TO CLINICS WHERE MEN OBTAIN SERVICES MOREOVER THE FEDERAL PROGRAM DEALING WITH SUCH DISEASES WHICH IS ADMINISTERED BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION HAS TRADITIONALLY FOCUSED PRIMARILY ON SYPHILIS AND GONORRHEA THOSE DISEASES ACCOUNT FOR ALMOST 75 OF THE PROGRAM'S BUDGET BUT MAKE UP ONLY 10 OF THE NUMBER OF CASES OF SEXUALLY TRANSMITTED DISEASES REPORTED IN THE US EACH YEAR THE STUDY SAID THE ALAN GUTTMACHER INSTITUTE RECOMMENDS THAT THE GOVERNMENT REDIRECT NATIONAL PRIORITIES AND FUNDING TOWARD PREVENTIVE CARE PROGRAMS FOR WOMEN THE CDC SAYS IT HAS ALREADY BEGUN DOING THAT LAST FALL IT LAUNCHED A CAMPAIGN TO ENCOURAGE STATE AND LOCAL HEALTH DEPARTMENTS WHICH GET TREATMENT MONEY FROM THE CDC TO PUT MORE OF AN EMPHASIS ON TREATMENT AND PREVENTION FOR WOMEN ACCORDING TO DR JUDITH WASSERHEIT DIRECTOR OF THE CDC'S DIVISION OF STDHIV PREVENTION HOW MUCH CDC FUNDING THESE HEALTH DEPARTMENTS GET DR WASSERHEIT SAID MAY WELL DEPEND ON HOW MUCH OF AN EMPHASIS THEIR PROGRAMS PLACE ON WOMEN 9304010076 930401 ECONOMY US MUST PROMOTE QUALITY IN INDUSTRY PANEL REPORTS WASHINGTON THE US MUST DEVELOP A NATIONAL VISION AND FRAMEWORK TO IMPROVE QUALITY IN BUSINESSES SO THEY CAN REMAIN COMPETITIVE SAID THE COUNCIL ON COMPETITIVENESS A STUDY BY THE PRIVATE GROUP OF BUSINESS LABOR AND EDUCATION EXECUTIVES NOTED GROWING SUPPORT FOR QUALITY IMPROVEMENT WITHIN INDUSTRY BUT IT SAID THE US LACKED A STRATEGY TO EDUCATE COMPANIES ON HOW TO INCREASE EFFICIENCY AND REDUCE WASTE THE US COULD DEVELOP A GOVERNMENTFUNDED CONSORTIUM OF UNIVERSITIES TO PROMOTE THE STUDY OF QUALITY MANAGEMENT AT ENGINEERING AND BUSINESS SCHOOLS THE REPORT SUGGESTED A HARVARD UNIVERSITY SURVEY OF 20 TOP BUSINESS SCHOOLS FOUND THAT ONLY ONEFIFTH DEVOTE MORE THAN THREE CLASSES TO QUALITY DURING INTRODUCTORY OPERATIONSMANAGEMENT COURSES THE REPORT ALSO SUGGESTED CREATION OF A NETWORK OF INDUSTRY PROFESSIONALS TO REGULARLY TRAIN WORKERS ON THE JOB IN QUALITYMANAGEMENT SKILLS AS AN EXAMPLE OF A SUCCESSFUL NATIONAL QUALITY CENTER THE COUNCIL POINTED TO THE UNION OF JAPANESE SCIENTISTS AND ENGINEERS A PRIVATE GROUP WITH A 40 MILLION BUDGET IT TRAINS WORKERS AT ALL LEVELS IN QUALITY CONTROL AND COORDINATES CORPORATE QUALITYCONTROL CIRCLES 9304010075 930401 BUSINESS BRIEF FRED'S INC COMPANY SIGNS PACT TO BUY BILL'S DOLLAR STORES CHAIN FRED'S INC SAID IT SIGNED A LETTER OF INTENT WITH THE CONTROLLING SHAREHOLDER OF BILL'S DOLLAR STORES INC AND BILL'S DOLLAR STORES' PRIMARY LENDER TO ACQUIRE THE CLOSELY HELD CONCERN FRED'S BASED IN MEMPHIS TENN DIDN'T DISCLOSE TERMS BUT SAID ALL THE CONSIDERATION FOR THE ACQUISITION WOULD BE IN THE FORM OF SECURITIES FRED'S WHICH OPERATES 158 DISCOUNT STORES IN THE SOUTHEAST SAID THE ADDITION OF BILL'S DOLLAR STORES WHICH IS BASED IN JACKSON MISS AND HAS ABOUT 530 STORES WILL SIGNIFICANTLY INCREASE ITS GEOGRAPHIC COVERAGE AND MARKET SHARE IN THE SOUTHEAST AND GREATLY ENHANCE ITS PURCHASING POWER AND ADVERTISING EFFECTIVENESS THE COMPANY SAID BILL'S DOLLAR STORES HAD SALES OF ABOUT 230 MILLION IN THE FISCAL YEAR ENDED JAN 30 FRED'S REPORTED 3165 MILLION FOR THE SAME PERIOD 9304010074 930401 BUSINESS BRIEF SCEPTRE RESOURCES LTD FIRM SIGNS LETTER OF INTENT FOR GULF CANADA PROPERTIES SCEPTRE RESOURCES LTD SAID IT SIGNED A LETTER OF INTENT TO PURCHASE GULF CANADA RESOURCES LTD'S OIL PROPERTIES AND FACILITIES IN SOUTHEAST SASKATCHEWAN SCEPTRE SAID THE MOVE WOULD INCREASE ITS OIL PRODUCTION TO ABOUT 24000 BARRELS A DAY FROM ABOUT 19000 THE COMPANY SAID TERMS WEREN'T DISCLOSED BUT SCEPTRE SAID IT WILL PAY FOR THE PURCHASE WITH EXISTING CASH FLOW PROCEEDS FROM ASSET SALES AND CASH FLOW FROM THE ACQUIRED PROPERTIES SCEPTRE BASED IN CALGARY ALBERTA SAID IT IS PLANNING AN OIL EXPLORATION AND DEVELOPMENT PROGRAM IN THE AREA OF THE GULF CANADA PROPERTIES THE ACQUISITION SUBJECT TO APPROVAL BY BOTH BOARDS IS EXPECTED TO CLOSE IN JULY WITH AN EFFECTIVE DATE OF APRIL 1 9304010073 930401 BUSINESS BRIEF FEDERAL HOME LOAN MORTGAGE CORP MORTGAGES OF 72 BILLION SET TO BE BOUGHT FROM LENDER FEDERAL HOME LOAN MORTGAGE CORP MCLEAN VA SAID IT WILL PURCHASE 72 BILLION IN MORTGAGES OVER THE NEXT YEAR FROM COUNTRYWIDE FUNDING CORP THE NATION'S LARGEST MORTGAGE LENDER FREDDIE MAC SAID THIS WAS ITS LARGEST MORTGAGE PURCHASE AGREEMENT WITH COUNTRYWIDE TO DATE COUNTRYWIDE FUNDING IS A UNIT OF COUNTRYWIDE CREDIT INDUSTRIES INC PASADENA CALIF FREDDIE MAC SAID THE AGREEMENT INCLUDES A 5 BILLION SINGLEYEAR COMMITMENT TO PURCHASE CONVENTIONAL 30YEAR 20YEAR AND 15YEAR FIXEDRATE MORTGAGES UNDER A SEPARATE AGREEMENT FREDDIE MAC WILL PURCHASE 22 BILLION OF BALLOON/RESET AND ADJUSTABLERATE MORTGAGES COUNTRYWIDE WILL SELL THE MAJORITY OF MORTGAGES IN EXCHANGE FOR FREDDIE MAC MORTGAGE PASSTHROUGH CERTIFICATES FREDDIE MAC BUYS HOME MORTGAGES AND REPACKAGES THEM TO INVESTORS IN THE FORM OF MORTGAGEBACKED SECURITIES 9304010072 930401 MERRILL STILL DOMINATES UNDERWRITING BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE POWERFUL DRIVE BY US CORPORATIONS TO RAISE CAPITAL ACCELERATED IN THE FIRST QUARTER PRODUCING A RECORD FLOOD OF NEW STOCK AND BOND ISSUES AND RECORD UNDERWRITING FEES FOR WALL STREET THE TOTAL VOLUME OF NEW STOCKS AND BONDS SOLD ROCKETED TO 2624 BILLION 18 HIGHER THAN THE 2221 BILLION RECORD SET A YEAR EARLIER ACCORDING TO SECURITIES DATA CO QUARTERLY VOLUME RECORDS WERE TOPPLED IN NEARLY EVERY UNDERWRITING CATEGORY INCLUDING INITIAL PUBLIC STOCK OFFERINGS CORPORATE BONDS AND HIGHYIELD JUNK BONDS MERRILL LYNCH & CO CONTINUED TO DOMINATE THE UNDERWRITING LANDSCAPE HELPING BRING TO MARKET NEARLY ONEFIFTH OF ALL NEW STOCK AND BOND ISSUES MERRILL THE NATION'S LARGEST BROKERAGE FIRM HAS LED THE QUARTERLY UNDERWRITING RANKINGS FOR MORE THAN FIVE YEARS THE TORRENT OF ACTIVITY TRIGGERED A BONANAZA FOR WALL STREET SECURITIES FIRMS WHICH BUY NEW STOCK AND BOND ISSUES FROM CORPORATIONS AND RESELL THEM TO INVESTORS AT A MARKUP EARNED 208 BILLION IN UNDERWRITING FEES DURING THE FIRST QUARTER ECLIPSING THE PRIOR RECORD OF 183 BILLION SET IN 1992'S FIRST QUARTER SECURITIES DATA SAYS MERRILL ALONE EARNED 4726 MILLION IN UNDERWRITING FEES IN THE FIRST QUARTER POWERING THE TWOYEAROLD UNDERWRITING BOOM ARE LOW INTEREST RATES CORPORATIONS ARE RUSHING TO SELL NEW BONDS SO THEY CAN PAY OFF OLDER HIGHERYIELDING DEBT A HUGE 47 OF ALL UNDERWRITING VOLUME IN THE FIRST QUARTER WAS NEW CORPORATE BONDS AT THE SAME TIME THERE IS NO SHORTAGE OF BUYERS INDIVIDUAL INVESTORS ARE SWITCHING IN DROVES INTO STOCK AND BOND MUTUAL FUNDS FROM LOWYIELDING CERTIFICATES OF DEPOSIT THAT GIVES MUTUAL FUNDS BILLIONS OF NEW DOLLARS EACH MONTH THAT NEED TO BE INVESTED THE CASH FLOWING INTO STOCK MUTUAL FUNDS PUTS THEM UNDER PRESSURE TO PUT THAT MONEY TO WORK DESPITE THE FACT THAT A LOT OF PEOPLE ARE BEGINNING TO GET CONCERNED WHETHER THE BULLMARKET CYCLE IS GETTING A LITTLE LONG IN THE TOOTH SAYS THOMAS W DAVIS MERRILL'S HEAD OF STOCK CAPITAL MARKETS BUT SOME INVESTMENT BANKERS AND ANALYSTS SAY THE DELUGE OF NEW STOCK ISSUES WILL TAPER OFF A BIT LATER THIS YEAR SAYS MR DAVIS THE NEWISSUE CYCLE ISN'T GOING TO LAST FOREVER BUT MEANWHILE THE UNDERWRITING BOOM HAS BUOYED WALL STREET'S BOTTOM LINE PRETAX PROFITS FOR SECURITIES FIRMS IN THE FIRST QUARTER ARE LIKELY TO HAVE ECLIPSED THE QUARTERLY RECORD OF 212 BILLION SET IN 1987'S FIRST QUARTER PREDICTS GUY MOSZKOWSKI A BROKERAGE ANALYST AT SANFORD C BERNSTEIN & CO HE SAYS WALL STREET'S FAT PROFITS WON'T SHRIVEL UNLESS INTEREST RATES RISE MEANINGFULLY EVEN WITH STELLAR EARNINGS HOWEVER SOME ANALYSTS NOW ARE CAUTIOUS ABOUT THE STOCKS OF BROKERAGE FIRMS WHICH HAVE SOARED THE PAST TWO YEARS I'VE GOT HOLDS ON MOST OF THESE STOCKS AND I CAN'T SEE GETTING ON BOARD NOW SAYS LAWRENCE ECKENFELDER A BROKERAGE ANALYST AT PRUDENTIAL SECURITIES INC WHEN THE PROFIT PARTY STOPS HE SAYS IT USUALLY HAPPENS PRETTY QUICKLY AFTER A BRIEF RESPITE IN JANUARY THE VOLUME OF INITIAL PUBLIC STOCK OFFERINGS PICKED UP STEAM IN MARCH THAT LATE RUSH PRODUCED A RECORD 115 BILLION OF IPOS IN THE FIRST QUARTER 4 HIGHER THAN THE PREVIOUS RECORD OF 1108 BILLION SET A YEAR AGO AMONG THE BIGGER IPOS DEAN WITTER DISCOVER & CO 7965 MILLION AND INSURER ACE LTD 5115 MILLION INSURANCE OFFERINGS WERE HOT THESE INCLUDED BANKERS LIFE HOLDING CORP 374 MILLION AND AMERICAN RE 3596 MILLION BOTH LEADMANAGED BY MERRILL A SIGN OF THE EBULLIENT IPO MARKET WAS THE HIGH PRICES INVESTORS WERE WILLING TO PAY JUST 15 OF THE 129 IPOS EXCLUDING CLOSEDEND FUNDS OR 12 WERE PRICED BELOW THE INITIAL PRICE RANGE EXPECTED BY UNDERWRITERS INDEED ONEQUARTER OF ALL IPOS CAME TO MARKET AT PRICES ABOVE THEIR INITIAL PRICE RANGE SAYS JOE MILLER A SECURITIES DATA ANALYST BY CONTRAST MORE THAN ONETHIRD OF ALL IPOS LAUNCHED IN 1992 WERE PRICED BELOW INITIAL PRICE TARGETS THE IPO BOOM IN TURN HELPED PRODUCE A RECORD VOLUME OF NEW STOCK OFFERINGS A CATEGORY THAT INCLUDES IPOS AND NEW SHARES SOLD BY ALREADY PUBLIC COMPANIES THE VOLUME OF STOCK OFFERINGS TOTALED 2216 BILLION IN THE FIRST QUARTER JUST TOPPING THE 2193 BILLION FIGURE IN THE YEAREARLIER PERIOD MERRILL RETAINED ITS CROWN AS THE NO 1 STOCK UNDERWRITER HELPING TO RAISE 489 BILLION FOR A BIG 22 SHARE OF THE MARKET GOLDMAN SACHS & CO WAS NO 2 WITH A 105 MARKET SHARE BUT GOLDMAN'S RANKING IN THE IPO TABLES PLUNGED TO NO 10 WITH A MEAGER 32 MARKET SHARE FROM NO 3 AND A 104 MARKET SHARE A YEAR EARLIER SECURITIES DATA SAYS GOLDMAN'S LOWER IPO MARKET SHARE IN THE QUARTER IS JUST A FUNCTION OF TIMING SAYS ROBERT HURST GOLDMAN'S INVESTMENTBANKING COCHIEF WE HAVE A NUMBER OF MANY DIFFERENT SIZED IPOS COMING IN THE SECOND QUARTER AND THROUGHOUT THE REST OF THE YEAR THE CALENDAR OF PLANNED NEW STOCK ISSUES REMAINS HEAVY FOR THE NEXT SEVERAL WEEKS MORE THAN 200 NEW STOCK OFFERINGS TOTALING 135 BILLION ARE SCHEDULED TO BE BROUGHT TO MARKET BY MIDMAY SAYS SECURITIES DATA OF THOSE 122 ARE IPOS TOTALING 81 BILLION AMONG THE BIG OFFERINGS SCHEDULED IS A GIANT IPO FOR SEARS ROEBUCK & CO'S ALLSTATE CORP INSURANCE UNIT WHICH IS EXPECTED TO RAISE ABOUT 2 BILLION LEADMANAGED BY GOLDMAN A BLOOMING FORWARD CALENDAR AND ROBUST CASH BALANCES AT MUTUAL FUNDS BODE WELL FOR THE EQUITY CAPITAL MARKETS IN THE NEAR TERM ACCORDING TO A RECENT REPORT BY FIRST BOSTON CORP THE BIGGEST NEWS IN THE BOND MARKET WAS THE JUMP IN BORROWING BY FOREIGN GOVERNMENTS AND CORPORATIONS THAT RUSHED FEVERISHLY TO TAP BOTH THE US AND EUROBOND MARKETS THE VOLUME OF NEW EUROBONDS WHICH ARE BONDS SOLD OUTSIDE THEIR HOME COUNTRIES HIT A RECORD 111 BILLION IN THE FIRST QUARTER UP FROM 847 BILLION A YEAR EARLIER SECURITIES DATA SAYS ISSUANCE OF YANKEE BONDS WHICH ARE BONDS SOLD IN THE US BY FOREIGN CORPORATIONS OR GOVERNMENTS REACHED A RECORD 194 BILLION MORE THAN DOUBLE THE 87 BILLION IN THE YEAREARLIER PERIOD THIS FOREIGN BORROWING BINGE WAS TRIGGERED BY DECLINING INTEREST RATES AND A NEED BY FOREIGN GOVERNMENTS TO FUND BIG BUDGET DEFICITS BUT THE FOREIGN BORROWING BOOM WON'T CONTINUE AT ITS CURRENT HEADY PACE SOME INVESTMENT BANKERS PREDICT THE GENERAL CONSENSUS IS THAT MANY FOREIGN BORROWERS FRONTEND LOADED THEIR BORROWING NEEDS FOR THE ENTIRE YEAR IN THE FIRST QUARTER SAYS MICHAEL DEE MANAGER OF DEBT SYNDICATION AT MORGAN STANLEY INTERNATIONAL IN LONDON IN THE US CORPORATE BOND MARKET BIG DEALS RULED THE ROOST AMONG THEM TWO SEPARATE 1 BILLION DEBENTURE OFFERINGS BY TIME WARNER INC AND FOUR SEPARATE 500 MILLION SENIORNOTE AND DEBENTURE OFFERINGS BY NEWS AMERICA HOLDINGS CORP A UNIT OF NEWS CORP ACCORDING TO SECURITIES DATA SOME INVESTMENT BANKERS EXPECT THE PACE OF NEW BOND OFFERINGS TO SLOW IN THE SECOND QUARTER CURRENTLY TRADING ACTIVITY IS SLUGGISH AND SOME INVESTORS FEARING THAT INTEREST RATES MAY HAVE STOPPED FALLING ARE PULLING BACK WE ARE EXPECTING A TRADING RANGE IN THE GOVERNMENT BOND MARKET WHICH WILL SLOW DOWN NEW CORPORATE ISSUANCE A BIT SAYS EDSON MITCHELL SENIOR MANAGING DIRECTOR OF MERRILL'S GLOBAL DEBT FINANCING DESK CONSTANCE MITCHELL CONTRIBUTED TO THIS ARTICLE 9304010071 930401 WHO'S NEWS COMPAQ MANAGERS RESIGN IN REVAMPING OF SALES OPERATIONS HOUSTON COMPAQ COMPUTER CORP SAID FOUR OF ITS SALES MANAGERS RESIGNED AS PART OF A REVAMPING OF THE COMPUTER MAKER'S FIELD SALES OPERATIONS THE EXECUTIVES INCLUDE DAVE DAVIS 56 YEARS OLD WHO HAS BEEN COMPAQ'S VICE PRESIDENT OF NORTH AMERICAN SALES FIELD MANAGERS IN DALLAS ATLANTA AND COSTA MESA CALIF ALSO HAVE LEFT THE COMPANY ACCORDING TO A REPORT IN THE HOUSTON CHRONICLE CONFIRMED BY THE COMPANY COMPAQ SAID THE DEPARTURES WEREN'T RELATED TO THE RESIGNATION IN MARCH OF DOUG JOHNS PRESIDENT OF THE COMPANY'S PERSONAL COMPUTER DIVISION WHO HAD SAID HE WANTED TO SPEND MORE TIME WITH HIS FAMILY COMPAQ ALSO PLANS TO CUT ITS 390PERSON FIELD SALES OPERATION BY ABOUT 100 PEOPLE A COMPAQ SPOKESMAN SAID THE JOB CUTS TO BE COMPLETED IN ABOUT A MONTH ARE PART OF A WORKFORCE REDUCTION OF ABOUT 1000 ANNOUNCED LAST FALL ALL THE MOVES THE COMPANY SAID ARE TIED TO A RESTRUCTURING OF COMPAQ'S DISTRIBUTION STRATEGY THAT HAS INCLUDED THE COMPANY'S FIRST ATTEMPT AT MAILORDER SALES AND A VAST EXPANSION OF ITS RETAIL NETWORK 9304010070 930401 BUSINESS BRIEF WESTERN GAS RESOURCES INC FIRM ACQUIRES MOUNTAIN GAS FOR 130 MILLION PLUS DEBT WESTERN GAS RESOURCES INC SAID IT AGREED TO BUY ALL THE STOCK OF CLOSELY HELD MOUNTAIN GAS RESOURCES INC FOR 130 MILLION AND THE ASSUMPTION OF CERTAIN DEBT THE ACQUISITION CONSISTS OF TWO NATURAL GAS GATHERING AND PROCESSING FACILITIES LOCATED IN SOUTHWESTERN WYOMING THE PLANTS HAVE A CAPACITY OF 190 MILLION CUBIC FEET OF GAS A DAY AND 200000 GALLONS OF NATURAL GAS LIQUIDS IN ADDITION THE FACILITIES ARE CONNECTED TO SEVERAL MAJOR PIPELINES WESTERN GAS BASED IN DENVER PLANS TO CONSTRUCT A 100MILLIONCUBICFEET CRYOGENIC PROCESSING PLANT AT ONE OF THE FACILITIES WHICH WILL INCREASE TOTAL LIQUIDS PRODUCTION CAPABILITIES BY 150000 GALLONS A DAY THE NEW FACILITY SCHEDULED TO BEGIN FUNCTIONING BY JUNE 1 WILL COST ABOUT 10 MILLION 9304010069 930401 TECHNOLOGY EPA PROPOSES RULES ON WATER POLLUTION FOR GREAT LAKES AREA WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED REGULATIONS SETTING UNIFORM WATERPOLLUTION STANDARDS FOR STATES IN THE GREAT LAKES REGION THE EAGERLY AWAITED RULES WHICH WOULD BE ENFORCED BY THE STATES AND AS A LAST RESORT BY THE EPA ARE DESIGNED TO PROTECT HUMAN ANIMAL AND PLANT LIFE IMPLEMENTING THEM IS EXPECTED TO COST INDUSTRIES AND MUNICIPALITIES THAT DISCHARGE WATER POLLUTANTS IN THE REGION 230 MILLION ACCORDING TO THE EPA AMONG THE INDUSTRIES LIKELY TO BE HARDEST HIT ARE PAPER PETROLEUM CHEMICALS AND STEEL KAREN NEALE EXECUTIVE DIRECTOR OF THE GREAT LAKES WATER QUALITY COALITION WHICH REPRESENTS INDUSTRIAL AND MUNICIPAL DISCHARGERS OF WASTE WATER SAID SHE HAD MAJOR CONCERNS WITH THE INITIATIVE WHICH SHE SAID WOULD BRING MINIMAL IMPROVEMENT TO WATER QUALITY WHILE PLACING VERY EXPENSIVE NEW BURDENS ON INDUSTRY BUT REBECCA SHRINER AN ACTIVIST WITH THE NATIONAL WILDLIFE FEDERATION HAILED THE RELEASE OF THE RULES WHICH WAS DELAYED DURING THE BUSH ADMINISTRATION AS A VICTORY FOR THE PUBLIC AND THE HEALTH OF THE GREAT LAKES THE PROPOSED RULES WHICH WILL BE PUBLISHED IN THE FEDERAL REGISTER AREN'T EXPECTED TO BE MADE FINAL FOR TWO YEARS ONCE IN PLACE STATES WOULD HAVE TWO YEARS TO ENACT PROCEDURES IN ACCORD WITH THE RULES IF THEY DON'T ACT BY THEN THE FEDERAL GOVERNMENT WILL ASSUME RESPONSIBILITY FOR ENFORCEMENT UNDER THE PROPOSAL VIOLATORS WOULD BE PUNISHED BY EITHER THE STATES OR THE FEDERAL GOVERNMENT WITH FINES OF 25000 PER DAY PER VIOLATION UNDER THE PROPOSED REGULATIONS STATES WOULD BE DIRECTED TO ENFORCE LIMITS ON EMISSIONS OF 20 POLLUTANTS THAT ARE THREATENING TO HUMAN HEALTH INCLUDING MERCURY DIOXIN PCBS AND DIELDRIN THEY WILL ALSO SET LIMITS ON 16 POLLUTANTS THREATENING TO AQUATIC LIFE AND FOUR POLLUTANTS THREATENING TO WILDLIFE BASED ON A PRELIMINARY SURVEY OF 50 PLANTS THE EPA ESTIMATES EMISSION REDUCTIONS RANGING FROM 30 FOR CHLORDANE TO 90 FOR COPPER SELENIUM AND TRICHLOROETHYLENE 9304010068 930401 RTC GETS READY FOR TOUGHEST SELL SEES LOWER RETURNS ON REMAINING ASSETS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY IS GETTING DOWN TO THE DREGS AS IT SEEKS TO WIND DOWN ITS SALE OF FAILED THRIFTS' ASSETS SOME MIGHTY BIG DREGS TO BE SURE THE RESOLUTION TRUST CORP'S REMAINING INVENTORY OF BAD LOANS UNDEVELOPED LAND LITTLEUSED COMMERCIAL PROPERTY AND OTHER S&L ASSETS HAS A BOOK VALUE OF ABOUT 100 BILLION AND OF THAT THE RTC SAYS FULLY 70 BILLION ARE HARD TO SELL THAT MEANS THE AGENCY WILL HAVE TO SETTLE FOR MUCH LOWER RETURNS ON THOSE ASSETS THAN IT'S USED TO SINCE ITS FORMATION IN 1989 THE RTC HAS DISPOSED OF ASSETS WITH A BOOK VALUE OF 330 BILLION IT RECOVERED ON AVERAGE 97 OF THE BOOK VALUE OF THE ASSETS IT SOLD IN 1989 THAT FELL TO 84 LAST YEAR AND OFFICIALS PROJECT A 79 RETURN THIS YEAR AS EASYTOSELL ASSETS SUCH AS RATED SECURITIES AND WELLDOCUMENTED PERFORMING HOME MORTGAGE LOANS ARE NEARLY GONE MANY OF THE REMAINING ASSETS WILL DRAW MUCH LOWER RETURNS THAN THAT 79 AVERAGE A STARK EXAMPLE OF JUST HOW MUCH THE RTC MAY HAVE TO CUT PRICES EMERGED LAST WEEK WHEN THE AGENCY FINALLY SOLD THE SOCALLED BANNING LEWIS RANCH IN COLORADO THE PROPERTY CONSISTS OF 22250 ACRES OF UNDEVELOPED LAND THE LARGEST SINGLE ASSET EVER HELD BY THE RTC WHICH TOOK IT OVER WHEN THE AGENCY ACQUIRED PHOENIXBASED WESTERN SAVINGS & LOAN ASSOCIATION DEVELOPERS ONCE OPTIMISTICALLY PLANNED TO USE THE LAND FOR THE EXPANSION OF COLORADO SPRINGS WHILE IT HAS A BOOK VALUE OF 220 MILLION THE RTC SOLD IT FOR 185 MILLION OTHER TROUBLESOME ASSETS IN RTC HANDS INCLUDE A 50YEAROLD BUILDING IN DOWNTOWN ATLANTA THAT WILL HAVE TO BE RAZED COMMERCIAL PROPERTIES NEAR PHILADELPHIA THAT ARE LACED WITH ASBESTOS LEAD OTHER HAZARDOUS SUBSTANCES AND MANY DRUMS FULL OF WASTE MATERIAL AND NUMEROUS GOLF COURSES THAT DON'T PRODUCE ENOUGH INCOME TO SUPPORT THEMSELVES TO MEET SUCH CHALLENGES THE RTC IS DEVELOPING OR EXPANDING NEW SALES STRATEGIES IT PLANS TO FORM MORE EQUITY PARTNERSHIPS IN WHICH PRIVATE PARTNERS PUT SOME OF THEIR MONEY INTO PROPERTIES AND THEN MANAGE AND SELL THEM FOR A SHARE OF THE PROCEEDS THE AGENCY ALSO PLANS TO HOLD MORE PUBLIC AUCTIONS WHICH IT BELIEVES COULD BOLSTER ITS RETURNS WHILE BLUNTING CRITICISMS THAT IT CATERS TOO MUCH TO LARGE INVESTORS AT RECENT COUNT THE RTC'S HARDTOSELL ASSETS INCLUDED 124 BILLION IN REAL ESTATE 175 BILLION IN NONDELINQUENT MORTGAGE AND OTHER LOANS THAT LACK COLLATERAL OR HAVE OTHER FINANCIAL OR ECONOMIC DRAWBACKS AND 161 BILLION IN DELINQUENT LOANS THE TASK OF SELLING THE REMAINING ASSETS WILL BE FORMIDABLE WE ARE FACED WITH THE CHALLENGE OF SELLING THE TOUGHEST OF OUR MOST DIFFICULTTOSELL ASSETS SAYS LAMAR KELLY AN RTC SENIOR VICE PRESIDENT THAT DOESN'T MEAN BUYERS CANNOT BE FOUND FOR EVEN THE WORST STUFF THERE IS A MARKET CLEARING PRICE FOR ALL OF THE INVENTORY SAID STEPHEN ROTH A PRINCIPAL IN LOS ANGELESBASED SECURED CAPITAL CORP THE RTC MIGHT NOT LIKE THAT PRICE BUT THERE ARE PEOPLE WHO WANT EVERY BIT OF IT WE'VE HANDLED SALES OF PROPERTY WITH 5 BILLION BOOK VALUE FOR THE RTC AND WE'VE NEVER NOT RECEIVED A BID MR ROTH SAID STILL THE CLINTON ADMINISTRATION INTENDS TO SLOW DOWN THE RTC'S PACE A BIT SO THAT IT CAN PUSH FOR BETTER RETURNS BEFORE ROGER ALTMAN THE DEPUTY TREASURY SECRETARY WAS NAMED TEMPORARY RTC CHIEF THE AGENCY HAD AIMED TO SELL 70 BILLION IN ASSETS THIS YEAR AND UP TO 60 BILLION IN 1994 THAT WOULD ENABLE IT TO GET RID OF MOST OF THE S&L HOLDINGS IT OWNS OR EXPECTS TO ACQUIRE BY LAW THE RTC WON'T BE ABLE TO TAKE OVER ANY MORE FAILED THRIFTS AFTER SEPT 30 OF THIS YEAR BUT IT HAS UNTIL THE END OF 1996 TO UNLOAD THE ASSETS IT ACQUIRES ANY SLOWDOWN COULD MAKE IT DIFFICULT TO REACH THOSE 1993 AND 1994 GOALS THE RTC IS BANKING ON THE NEW EQUITY PARTNERSHIPS WITH PRIVATE INVESTMENT MANAGERS AS ONE WAY TO BOOST ITS RETURN ON LAND IT ALSO HOPES THIS YEAR TO SELL PACKAGES OF COMMERCIAL MORTGAGE LOANS AND REAL ESTATE VALUED AT 10 BILLION THE FIRST EQUITYPARTNERSHIP LAND DEAL WILL INVOLVE 2 BILLION OF UNDEVELOPED LAND AND LAND LOANS IN ARIZONA COLORADO CALIFORNIA AND TEXAS THE RTC WILL TAKE BIDS UNTIL APRIL 22 FROM INVESTORS INTERESTED IN HELPING TO UNLOAD THE PROPERTY THE LAND PROBABLY WILL BE OFFERED IN SIX BUNDLES SOME 32 INVESTOR GROUPS HAVE SUBMITTED INFORMATION TO SHOW THEY'RE QUALIFIED TO HELP THE RTC SELL THE LAND THE PACKAGE INCLUDES 77 PARCELS OF MOSTLY UNDEVELOPED LAND NEAR GOODYEAR ARIZ AND A BUNCH OF LOANS WITH A TOTAL BOOK VALUE OF 290 MILLION THE RTC INHERITED THOSE ASSETS WHEN IT TOOK OVER CHARLES KEATING'S FAILED LINCOLN FEDERAL SAVINGS & LOAN ASSOCIATION MR KEATING WAS CONVICTED OF FRAUD IN CONNECTION WITH ACTIVITIES OF THE THRIFT AND ITS PARENT COMPANY IT WAS HIGHLY SPECULATIVE PROPERTIES SUCH AS MR KEATING'S THAT FORCED MANY THRIFTS INTO INSOLVENCY UNDEVELOPED LAND WHICH DOESN'T PRODUCE CASH FLOW IS MUCH MORE DIFFICULT TO SELL THAN OTHER RTC ASSETS SAYS H RENNYSON MERRITT III VICE PRESIDENT OF ALDRICH EASTMAN & WALTCH A BOSTON REAL ESTATE FIRM TO DATE LAND SALES OFTEN HAVE YIELDED RETURNS AS LOW AS 20 SOMETIMES LOWER MITCHELL PACELLE IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9304010066 930401 CANADA IMPOSES LEVIES ON IMPORTS OF SOME SHEET STEEL BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA IN ANOTHER RETALIATORY STEEL MOVE IMPOSED ANTIDUMPING LEVIES ON IMPORTS OF COLDROLLED SHEET STEEL FROM THE US AND FOUR OTHER COUNTRIES COLDROLLED SHEET IS THE THIRD MAJOR STEEL PRODUCT TO BE HIT WITH CANADIAN ANTIDUMPING DUTIES SINCE THE US STEEL INDUSTRY LAST YEAR FILED UNFAIR TRADE COMPLAINTS AGAINST STEELMAKERS IN CANADA AND 18 OTHER COUNTRIES CANADIAN STEEL PRODUCERS ALSO HAVE LODGED A DUMPING COMPLAINT WITH THE GOVERNMENT AGAINST IMPORTS OF GALVANIZED STEEL BUT FEDERAL OFFICIALS HAVEN'T YET ANNOUNCED WHETHER THEY WILL INVESTIGATE DUMPING OCCURS WHEN A PRODUCT IS SOLD IN A FOREIGN MARKET AT A PRICE LOWER THAN THE DOMESTIC PRICE REVENUE CANADA THE AGENCY WHICH INVESTIGATES CANADIAN TRADE GRIEVANCES RULED THAT COLDROLLED SHEET STEEL FROM THE US GERMANY FRANCE ITALY AND BRITAIN WAS BEING SOLD AT UNFAIRLY LOW PRICES IN CANADA SUCH STEEL IS USED TO MAKE SUCH PRODUCTS AS HOUSEHOLD APPLIANCES AUTO PARTS AND OFFICE FURNITURE THE US HAS ACCOUNTED FOR ABOUT THREEQUARTERS OF CANADA'S IMPORTS OF COLDROLLED SHEET WHICH IN RECENT YEARS HAVE TOTALED ALMOST 200000 TONS REVENUE CANADA NAMED 109 US COMPANIES INVOLVED IN SELLING SUCH STEEL TO CANADA TO COUNTER THE DUMPING REVENUE CANADA IMPOSED PROVISIONAL IMPORT LEVIES RANGING FROM 87 TO 873 OF THE EXPORT PRICES OF COLDROLLED SHEET SHIPPED TO CANADA THE STIFFEST LEVIES WERE APPLIED TO PRODUCERS THAT DIDN'T RESPOND FULLY OR AT ALL TO THE AGENCY'S REQUEST FOR PRICE DATA SEVERAL US PRODUCERS WERE CLEARED OF DUMPING INCLUDING NATIONAL STEEL CORP PITTSBURGH NUCOR CORP CHARLOTTE NC AND THE BURNS HABOR AND LACKAWANNA MILLS OF BETHLEHEM STEEL CORP BETHLEHEM PA NATIONAL STEEL IS ABOUT 70OWNED BY NKK CORP OF JAPAN REVENUE CANADA IMPOSED A 87 ANTIDUMPING LEVY ON COLDROLLED SHEET FROM US STEEL'S GARY WORKS AND A 192 DUTY ON IMPORTS FROM ITS IRVIN PLANT US STEEL IS A SUBSIDIARY OF USX CORP PITTSBURGH THE LEVY WAS SET AT 97 FOR SUPPLIES FROM INLAND STEEL INDUSTRIES INC CHICAGO AND AT 96 FOR LTV STEEL CO CLEVELAND A UNIT OF LTV CORP A SPOKESMAN FOR INLAND STEEL CALLED THE DECISION WRONG AND SAID THE CANADIANS HAVEN'T LOOKED ADEQUATELY AT THE FACTS HE SAID INLAND STEEL FAR FROM DUMPING HAS MADE GOOD MARGINS ON ITS CANADIAN SALES AND EXPECTS THE FINAL DECISION TO OVERTURN THE PRELIMINARY RULING US STEEL SAID IT HAD NO COMMENT OFFICIALS AT LTV COULDN'T BE REACHED THE CANADIAN INTERNATIONAL TRADE TRIBUNAL WILL NOW TAKE UP THE CASE TO DETERMINE IF CANADIAN STEEL PRODUCERS HAVE BEEN INJURED BY THE IMPORTS OF LOW PRICED COLDROLLED SHEET STEEL THE CANADIAN STEEL INDUSTRY AND THE CANADIAN GOVERNMENT HAVE URGED THEIR US COUNTERPARTS TO NEGOTIATE A STEEL TRADE PACT WITH CANADA TO AVOID RETALIATORY STEEL TRADE ACTIONS FRED TELMER CHAIRMAN OF STELCO INC A MAJOR CANADIAN STEEL PRODUCER SAID THE CURRENT ABSURD AND DESTRUCTIVE SITUATION FAILS TO RECOGIZE THE REALITY OF AN INTEGRATED NORTH AMERICAN ECONOMY CANADIAN TRADE MINISTER MICHAEL WILSON IS EXPECTED TO PRESS CANADA'S CASE FOR A USCANADA STEEL TRADE PACT WHEN HE MEETS IN OTTAWA FRIDAY WITH US TRADE REPRESENTATIVE MICKEY KANTOR EARLIER THIS YEAR REVENUE CANADA IMPOSED PROVISIONAL ANTIDUMPING LEVIES ON IMPORTS FROM THE US AND CERTAIN OTHER COUNTRIES OF HOTROLLED CARBON STEEL SHEET PRODUCTS AND OF CARBON STEEL PLATE 9304010065 930401 BUSINESS BRIEF YORK INTERNATIONAL CORP AIRCONDITIONER PLANT STAFF TO BE CUT BY 80 HOURLY JOBS YORK INTERNATIONAL CORP YORK PA SAID IT WILL CUT ABOUT 80 HOURLY JOBS AT ONE OF ITS AIRCONDITIONER MANUFACTURING PLANTS IN YORK PA AND MOVE THE WORK TO OTHER FACILITIES WE'RE SIMPLY MOVING PRODUCTION TO SOME OTHER FACILITIES WHERE WE BELIEVE WE CAN GET THE WORK DONE LESS EXPENSIVELY A SPOKESMAN SAID PRODUCTION OF THE RECIPROCATING CHILLERS WILL BE TRANSFERRED TO YORK PLANTS IN MISSISSIPPI CALIFORNIA AND NEW MEXICO RIGHT NOW WE'RE STILL MEETING WITH THE COMPANY SAID PAUL DIETZ ACTING PRESIDENT OF UNITED AUTO WORKERS LOCAL 1872 WHICH REPRESENTS THE WORKERS AND ALTHOUGH THE WORKERS RECEIVED NOTICE ALREADY WE'LL CONTINUE TO TRY AND FIND A SOLUTION OR A WAY TO KEEP THE JOBS IN YORK YORK WHICH ALSO MAKES HEATING AND VENTILATING EQUIPMENT HAS ABOUT 12500 WORKERS WORLDWIDE AND REPORTED SALES OF 19 BILLION FOR 1992 9304010064 930401 BUSINESS BRIEF COMPTRONIX REPORTS ITS OPERATING LOSS NARROWED LAST YEAR GUNTERSVILLE ALA COMPTRONIX CORP REPORTED THAT ITS OPERATING LOSS FOR 1992 NARROWED TO 29 MILLION OR 27 CENTS A SHARE FOR 1992 FROM A RESTATED 32 MILLION OR 34 CENTS A SHARE IN 1991 THE COMPANY WHICH DISCLOSED LAST NOVEMBER THAT ITS SENIOR MANAGEMENT HAD INFLATED EARNINGS FOR YEARS REPORTED A 1992 NET LOSS OF 205 MILLION OR 190 A SHARE THE RESULTS INCLUDED 153 MILLION TO SETTLE CLASSACTION SECURITIES LITIGATION AND THE COSTS OF ITS INVESTIGATION INTO THE FRAUDULENT ACCOUNTING SCHEME CARRIED OUT BY FORMER MEMBERS OF MANAGEMENT THE 1992 RESULTS ALSO INCLUDED 23 MILLION IN ONETIME RESTRUCTURING CHARGES FOR CONSOLIDATING ITS SAN JOSE DIVISION INTO A SINGLE FACILITY AND OTHER ACTIONS THE COMPANY WHICH MAKES ELECTRONIC PARTS REPORTED THAT SALES ROSE 56 TO 1391 MILLION FROM 888 MILLION IN 1991 THE COMPANY ALSO REPORTED A 1990 NET LOSS OF 36 MILLION OR 43 CENTS A SHARE ON 634 MILLION IN SALES AND A 1989 NET LOSS OF 35 MILLION OR 47 CENTS A SHARE ON 373 MILLION IN SALES COMPTRONIX SAID THE 1992 RESULTS AND RESTATED RESULTS FOR 1989 THROUGH 1991 GIVE IT A REALISTIC BASIS ON WHICH TO MANAGE THE COMPANY'S BUSINESS GOING FORWARD THE COMPANY SAID ITS GROSS MARGINS INCREASED IN 1992 TO 61 FROM 57 IN 1991 BUT E TOWNES DUNCAN ITS INTERIM CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THE COMPANY HAS NOT ACHIEVED LEVELS OF GROSS MARGINS THAT IT SHOULD BE CAPABLE OF AND IS TAKING STEPS TO IMPROVE ITS MARGINS 9304010063 930401 POLITICS & POLICY ANOTHER WORLD TRADE CENTER SUSPECT NAMED BUT US CASE REMAINS SKETCHY BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEDERAL PROSECUTORS CHARGED ANOTHER SUSPECT IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING AND SAY THEY ARE LOOKING FOR MORE RAMZI AHMED YOUSEF 25 FORMERLY OF JERSEY CITY NJ WAS INDICTED ON CHARGES OF PARTICIPATING IN THE FEB 26 BOMBING THAT KILLED SIX PEOPLE PROSECUTORS SAID MR YOUSEF IS A FUGITIVE AND A WARRANT HAS BEEN ISSUED FOR HIS ARREST MR YOUSEF'S NAME BECAME PUBLIC IN A NEW INDICTMENT THAT INCLUDES THREE OTHER SUSPECTS WHO WERE ALL PREVIOUSLY CHARGED THE ORIGINAL INDICTMENT CHARGED ONLY THE FIRST TWO PEOPLE ARRESTED IN THE CASE AND THE SUPERSEDING INDICTMENT WAS EXPECTED AS IT WILL ALLOW THE GOVERNMENT TO TRY ALL THE DEFENDANTS BEFORE ONE JUDGE THE OTHER THREE SUSPECTS NAMED IN THE INDICTMENT ARE MOHAMMED A SALAMEH NIDAL AYYAD AND MAHMUD ABOHALIMA A FIFTH SUSPECT BILAL ALKAISI HAS BEEN CHARGED WITH AIDING AND ABETTING THE BOMBING BUT WAS NOT NAMED IN THE INDICTMENT A SIXTH PERSON IBRAHIM ELGABROWNY IS BEING HELD ON CHARGES OF OBSTRUCTING THE INVESTIGATION BUT HASN'T BEEN LINKED TO THE BOMBING ALL THE SUSPECTS HAVE EITHER PLEADED INNOCENT OR SAID THROUGH ATTORNEYS THAT THEY WEREN'T RESPONSIBLE FOR THE BOMBING PROSECUTORS SAID THAT MR YOUSEF LIVED IN THE SAME APARTMENT AS MR SALAMEH THE FIRST PERSON CHARGED IN THE CASE AND THE ONE ACCUSED OF RENTING THE VAN USED TO CARRY THE EXPLOSIVES TO THE PARKING GARAGE BENEATH THE WORLD TRADE CENTER THE ADDRESS OF THE SHARED APARTMENT HAS BEEN MATCHED TO THE PHONE NUMBER MR SALAMEH LISTED ON THE VAN RENTAL FORM THERE WERE FEW ADDITIONAL DETAILS AVAILABLE ABOUT MR YOUSEF EXCEPT THAT HIS PARENTS ARE IRAQIS HE WAS ORIGINALLY NAMED LAST WEEK IN A SEALED INDICTMENT ACCORDING TO A LAWENFORCEMENT OFFICIAL AND IS BELIEVED TO HAVE FLED OVERSEAS ATTORNEYS FOR THE OTHER SUSPECTS SAID THEY DID NOT KNOW WHO MR YOUSEF WAS AND THAT THEIR CLIENTS HAD NOT MENTIONED HIM INDEED THE NEW INDICTMENT LIKE THE PREVIOUS ONES PROVIDES LITTLE INFORMATION ABOUT HOW PROSECUTORS BELIEVE THE BOMBING WAS ACCOMPLISHED SPEAKING AT A NEWS CONFERENCE LAST WEEK ROGER HAYES THE US ATTORNEY FOR MANHATTAN SAID THE SUPERSEDING INDICTMENT WOULD BE MORE DETAILED HE DIDN'T RETURN A PHONE CALL SEEKING COMMENT ON WHY THE NEW INDICTMENT'S DETAILS ARE SO SPARSE BUT LAW ENFORCEMENT OFFICIALS SPEAKING ON THE CONDITION OF ANONYMITY HAVE OUTLINED SOME OF THEIR THEORIES ABOUT THE BOMBING THEY HAVE ALLEGED MR ABOHALIMA WAS THE RINGLEADER AND THAT THE MEN WERE INSPIRED BY SHEIK OMAR ABDELRAHMAN A RADICAL MUSLIM CLERIC FROM EGYPT WHO GIVES SERMONS ATTACKING THE WEST THROUGHOUT THE US BUT THE PUBLIC COURT FILINGS PROVIDE LITTLE EVIDENCE TO BACK UP THOSE THEORIES LEONARD WEINGLASS AN ATTORNEY FOR MR AYYAD SAID THAT HE EXPECTED THE GOVERNMENT TO INCLUDE A DETAILED CONSPIRACY CHARGE IN THE NEW INDICTMENT BUT PROSECUTORS DON'T HAVE TO FILE DETAILED INDICTMENTS OR MAKE THEIR EVIDENCE PUBLIC UNTIL CLOSE TO THE TRIAL LAW ENFORCEMENT OFFICIALS HAVE ALSO SAID THAT THE INVESTIGATION IS CONTINUING ROBERT PRECHT ATTORNEY FOR MR SALAMEH SAID THE GOVERNMENT WAS OBVIOUSLY TRYING TO HEDGE THEIR BETS BY FILING AN INDICTMENT THAT CREATES A GENERAL THEORY OF LIABILITY WITHOUT COMMITTING TO ONE OR THE OTHER ANOTHER POSSIBILITY IS THAT THE GOVERNMENT IS PRESSURING ONE OF THE SUSPECTS TO COOPERATE JESSE BERMAN ATTORNEY FOR MR ABOHALIMA SAID FBI AGENTS ARE NOW OFFERING TO HELP MR ABOHALIMA BRING HIS FOUR CHILDREN OUT OF EGYPT IF HE COOPERATES THEY'RE DANGLING HIS CHILDREN WHO WERE BORN IN THE US AND CARRY USPASSPORTS IN FRONT OF HIM THE STATE DEPARTMENT WHICH NORMALLY WOULD TAKE ACTION IN SUCH A CASE IS SITTING ON ITS HANDS MR BERMAN CONTENDS MR ABOHALIMA AND HIS WIFE CARRY GERMAN PASSPORTS HIS WIFE AND CHILDREN ARE STILL IN EGYPT AND THEIR PASSPORTS HAVE BEEN TAKEN MR BERMAN SAYS A STATE DEPARTMENT SPOKESWOMAN DECLINED TO COMMENT ON THE ALLEGATION 9304010062 930401 MARKETING & MEDIA ADVERTISING TWO PREVIOUS HIGHFLIERS UNITE TO FORM NEW SHOP BY KEVIN GOLDMAN MADISON AVENUE HASN'T HEARD MUCH LATELY FROM PARRY MERKLEY AND JANE NEWMAN TWO OF ITS HIGHEST FLIERS IN THE 1980S WELL ADVERTISING IS ABOUT TO HEAR A LOT MORE THEY HOPE MR MERKLEY WHO MADE HIS NAME AS THE CREATOR OF THE AMERICAN EXPRESS PORTRAIT ADS WHILE AT OGILVY & MATHER AND MS NEWMAN WHO WAS BROUGHT TO CHIAT/DAY AS PRESIDENT AND CHIEF EXECUTIVE OF ITS NEW YORK OFFICE WILL START AN AD AGENCY UNDER THE OMNICOM GROUP UMBRELLA THE TWO EXECUTIVES NEED TO RESUSCITATE THEIR CAREERS MR MERKLEY LEFT WPP GROUP'S OGILVY & MATHER IN 1991 TO BECOME PRESIDENT AND CREATIVE DIRECTOR OF OMNICOM'S DOREMUS & CO WHICH IS KNOWN FOR STODGY FINANCIAL TOMBSTONE ADVERTISING HIS MANDATE TO JOSTLE THE AGENCY'S CREATIVE JUICES IT DIDN'T HAPPEN ALTHOUGH MR MERKLEY SAID THE AGENCY CREATED THE FIRST NETWORK TELEVISION CAMPAIGN FOR WORDPERFECT WHICH PREMIERED SUNDAY ON CBS'S 60 MINUTES OMNICOM IS EXPECTED TO ANNOUNCE THE NEW VENTURE TODAY MS NEWMAN WHO IS REPUTED TO WORK SPLENDIDLY WITH CLIENTS BUT IS VIEWED AS DISTANT AND COLD INHOUSE HEADED CHIAT/DAY'S TROUBLED NEW YORK OFFICE AND WAS REMOVED FROM THAT POSITION IN AUGUST 1990 SHE WAS THEN ASSIGNED THE NEW TITLE OF VICE CHAIRMAN RESPONSIBLE FOR WORLDWIDE STRATEGIC PLANNING HER REMOVAL FOLLOWED LARGE CLIENT LOSSES BY CHIAT/DAY WHICH WAS THEN KNOWN AS CHIAT/DAY/MOJO THE CLIENT DEFECTIONS INCLUDED REEBOK INTERNATIONAL'S DOMESTIC ADVERTISING AND SARA LEE WITH COMBINED BILLINGS OF 52 MILLION REEBOK HAS SINCE RETURNED MR MERKLEY AND MS NEWMAN WILL BE JOINED AT THE NEW SHOP BY STEPHEN HARTY EXECUTIVE VICE PRESIDENT AND DIRECTOR OF CLIENT SERVICES AT DOREMUS THE NEW SOCALLED BOUTIQUE AGENCY WILL BE KNOWN AS MERKLEY/NEWMAN/HARTY ITS CREATION MARKS THE FIRST BONA FIDE STARTUP OF AN AD AGENCY IN QUITE A WHILE THE NEW AGENCY WILL BE BUILT ON DOREMUS CORPORATE AND CONSUMER ACCOUNTS INCLUDING BANKERS TRUST FORBES CASIO WORDPERFECT GENERAL ELECTRIC'S AIRCRAFT ENGINES DIVISION THE DIME BANK AND BOWNE A COMMERCIAL AND FINANCIAL PRINTING COMPANY OBVIOUSLY THE AGENCY WILL HAVE TO SHOW IT CAN FLEX CREATIVE MUSCLES IN ORDER TO WIN SNAZZY NEW ACCOUNTS BILLINGS ARE ABOUT 40 MILLION AND THE NEW AGENCY WILL OPEN WITH APPROXIMATELY 40 EMPLOYEES IT IS CLEAR THAT OMNICOM COULDN'T MAKE A GO OF TURNING AROUND THE TANKER OF AN AGENCY KNOWN AS DOREMUS AND HAS DECIDED TO GO WITH A MUCH SMALLER BOUTIQUE ALMOST A YEAR AGO DOREMUS SPLIT INTO TWO UNITS ONE TO HANDLE THE SOCALLED TOMBSTONE ACCOUNTS AND THE OTHER TO OVERSEE GENERALADVERTISING CLIENTS OMNICOM FELT IT STRUCK GOLD WITH MR MERKLEY WHOSE AMERICAN EXPRESS PORTRAITS CAMPAIGN SHOWCASED THE PHOTOGRAPHS OF ELLA FITZGERALD AND TOM SEAVER AMONG OTHERS TAKEN BY VANITY FAIR STAR ANNIE LIEBOVITZ AT OGILVY MR MERKLEY WAS A PARTNER OF GORDON BOWEN WHO WAS RECENTLY PINKSLIPPED AS A CREATIVE EXECUTIVE AT INTERPUBLIC GROUP'S MCCANNERICKSON MR MERKLEY IS APPARENTLY FARING BETTER THAN HIS FORMER COLLEAGUE IN AN INTERVIEW YESTERDAY MR MERKLEY SAID AT FIRST NO ONE COULD UNDERSTAND WHY I CAME HERE BUT HE ADDED HE QUICKLY REALIZED DOREMUS REPRESENTED AN OPPORTUNITY TO CREATE AN AD AGENCY FROM THE BOTTOM UP ABOUT A YEAR AGO I MET WITH OMNICOM AND SAID WE SHOULD PUT TOGETHER AN AGENCY FOR THE FUTURE MR MERKLEY RECALLED OMNICOM'S CREATION OF ANOTHER BOUTIQUE AGENCY IT HAS ALTSCHULLER REITZFELD NEW YORK AND GOODBY BERLIN & SILVERSTEIN SAN FRANCISCO IS PART OF ITS STRATEGY TO BEAT RIVAL INTERPUBLIC IN CREATIVITY BECAUSE IT IS UNLIKELY TO DO SO IN SHEER SIZE MS NEWMAN 46 YEARS OLD SAID THE NEW AGENCY IS UNIQUE BECAUSE IT IS JOINTLY HEADED BY THREE PARTNERS WITH SPECIFIC SKILLS MS NEWMAN WILL BE IN CHARGE OF STRATEGIC PLANNING MR MERKLEY 41 WILL HANDLE THE CREATIVE END AND MR HARTY 41 WILL MANAGE THE ACCOUNT SIDE AND STROKE CLIENTS WHY DOES THE WORLD NEED ANOTHER AGENCY MS NEWMAN ASKED WE DON'T HAVE THE BAGGAGE OF OTHER AGENCIES VERY RARELY DO PEOPLE ASK CLIENTS WHAT THEY WANT WE WILL MS NEWMAN PREVIOUSLY WORKED FOR OMNICOM AT ITS DDB NEEDHAM AGENCY'S CHICAGO OFFICE BEFORE BEING PLUCKED BY CHIAT/DAY MS NEWMAN'S UNEXPECTED DEPARTURE FROM CHIAT IS ANOTHER BLOW TO ITS NEW YORK OPERATION OVER THE PAST YEAR OR SO THE TOP EXECUTIVE RANKS THERE HAVE RESEMBLED A REVOLVING DOOR MR CHIAT WHO WAS TOLD TUESDAY OF MS NEWMAN'S PLANS TO DEFECT SAID HE WAS HAPPY FOR HIS FORMER EXECUTIVE IT IS OBVIOUSLY SOMETHING SHE HAS THOUGHT THROUGH SAID MR CHIAT HE ADDED THAT THE NEW AGENCY WAS STARTING WITH A GOOD BASE AND ULTIMATELY SHOULD BE A GOOD LITTLE AGENCY MR CHIAT SAID HE WOULD PROMOTE FROM WITHIN TO FILL MS NEWMAN'S SPOT WE'VE DEVELOPED OUR OWN TALENT HERE HE SAID MS NEWMAN SAID THE NEW AGENCY WOULDN'T RAID CHIAT FOR CLIENTS WE DON'T NEED THAT SHE SAID MR MERKLEY WHO SPENT THE BETTER PART OF A YEAR DROPPING HINTS THAT SUCH A NEW OPERATION WAS INDEED IN THE WORKS SAID THE AGENCY WILL SUCCEED BECAUSE IT PLANS TO START DEEP IN THE CORE OF A CLIENT'S BUSINESS OBJECTIVES WE WANT TO WORK AS PROBLEM SOLVERS AND WE WILL HAVE MANY TOOLS TO SOLVE MARKETING PROBLEMS THAT IS LOFTY TALK INDEED BUT AS VIRTUALLY EVERYONE ALONG MADISON AVENUE CAN ATTEST IT IS EXTREMELY DIFFICULT TO OPEN A NEW YORK AD AGENCY IT HASN'T BEEN EASY FOR CHIAT/DAY'S NEW YORK OFFICE WHICH OPENED ITS DOORS IN 1981 FOR EXAMPLE MR MERKLEY SAID THE AGENCY WAS GOING TO PITCH ACCOUNTS BUT WE WON'T CHASE EVERYTHING OUT THERE WE'RE GOING TO GROW DIFFERENTLY THAN OTHER AGENCIES WE'RE GOING TO PARTNER WITH INTELLIGENT PARTNERS INTERNATIONAL BUSINESS MACHINES IS BREAKING AWAY RESPONSIBILITY FOR PERSONALCOMPUTER ADVERTISING FROM ITS CENTRAL COMMUNICATIONS GROUP AND PUTTING IT UNDER THE AUTHORITY OF ITS PC OPERATING UNIT THE SHIFT MEANS THAT IBM'S PC UNIT WILL NOW OVERSEE FOR ITSELF THE AD AGENCIES THAT CREATE ITS ADVERTISING PRINCIPALLY INTERPUBLIC GROUP'S LINTAS WHICH HANDLES TELEVISION AND PRINT EFFORTS FOR THE AGENCIES THE SHIFT MEANS A CHANGE IN A KEY CONTACT AT THE CLIENT JAMES C REILLY GENERAL MANAGER OF IBM'S CENTRAL COMMUNICATIONS GROUP NO LONGER OVERSEES THE PC ADVERTISING NOW THAT DUTY FALLS TO C RAY FREEMAN VICE PRESIDENT OF COMMUNICATIONS AT THE PC UNIT THE PC UNIT'S NEW AUTHORITY EXTENDS TO ANY DECISIONS ABOUT WHETHER TO HIRE A NEW AGENCY SAID MR REILLY BUT IF AND WHEN THE UNIT EVER PUTS ITS ACCOUNT INTO REVIEW HE SAID HIS GROUP WOULD HAVE A SAY IN THE DECISION AT THAT POINT IT BECOMES A JOINT PROJECT MR REILLY SAID A PC UNIT SPOKESMAN SAID THERE ARE NO CURRENT PLANS WHATSOEVER THAT WOULD MAKE A CHANGE IN LINTAS'S STATUS MCCANN INTERPUBLIC GROUP'S MCCANNERICKSON NAMED MARSHALL KARP AN EXECUTIVE VICE PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR OF ITS INTERNATIONAL CREATIVE TEAM REPORTING TO MARCIO MOREIRA VICE CHAIRMAN AND CHIEF CREATIVE OFFICER MR KARP A ONETIME CREATIVE DIRECTOR AT INTERPUBLIC'S LOWE OPERATIONS IN NEW YORK WAS MOST RECENTLY A CREATIVE CONSULTANT TO THE AGENCY WORKING ON AMONG OTHERS THE COCACOLA ACCOUNT WHO'S NEWS THE CANADIAN OPERATIONS OF SAATCHI & SAATCHI CO'S BACKER SPIELVOGEL BATES NAMED WILLIAM J WHITEHEAD CHIEF EXECUTIVE OF THE AGENCY TO THE ADDITIONAL POST OF CHAIRMAN MR WHITEHEAD SUCCEEDS STAN BUDA WHO WAS NAMED CHAIRMAN EMERITUS WILLIAM H MAYNARD NAMED EXECUTIVE CREATIVE DIRECTOR LAST YEAR WAS PROMOTED TO PRESIDENT AND CHIEF CREATIVE OFFICER 9304010061 930401 BUSINESS BRIEF COMERICA INC PACT IS ENDED FOR PURCHASE OF FIRST OF MICHIGAN CAPITAL COMERICA INC DETROIT SAID IT TERMINATED AN AGREEMENT TO BUY FIRST OF MICHIGAN CAPITAL CORP AFTER LEARNING SEVERAL KEY EMPLOYEES HAD LEFT THE REGIONAL INVESTMENT BANKING CONCERN COMERICA AGREED IN JANUARY TO BUY FIRST OF MICHIGAN IN A 45 MILLION STOCK SWAP JOHN R MARTIN FIRST OF MICHIGAN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID COMERICA HAD INFORMED HIM THAT FIRST OF MICHIGAN HAD BREACHED THE TERMS OF THE DEFINITIVE AGREEMENT HE DIDN'T ELABORATE COMERICA A COMMERCIAL BANK HOLDING COMPANY ORIGINALLY HAD HOPED TO USE THE FIRST OF MICHIGAN ACQUISITION TO ENTER THE SECURITIES MARKET HOWEVER A COMERICA SPOKESWOMAN SAID FIRST OF MICHIGAN LOST ITS CORPORATE FINANCING CAPABILITIES WHEN IT LOST THE STAFFERS TO RONEY & CO A PRIVATELY HELD BROKERAGE FIRM IN DETROIT REPRESENTATIVES OF RONEY & CO COULDN'T BE REACHED FOR COMMENT 9304010060 930401 LEISURE & ARTS FILM HOLLYWOOD COPYCATS DO IT AGAIN BY JULIE SALAMON FOR YEARS PEOPLE HAVE DESCRIBED MELANIE GRIFFITH AS THE CONTEMPORARY JUDY HOLLIDAY SO IT WAS NO SURPRISE TO SEE THAT SHE WAS PLAYING THE PART OF THE BLONDE BIMBO WHO BECOMES SMART AND VIRTUOUS IN THE NEW VERSION OF THE 1950 HOLLIDAY VEHICLE BORN YESTERDAY THE ORIGINAL PICTURE ADAPTED FROM A GARSON KANIN PLAY WAS A POPULIST SATIRE OF WASHINGTON AND BIG BUSINESS THAT WOUND UP WITH A CIVICS LESSON BRODERICK CRAWFORD WAS THE HEAVY A MEAN JUNK DEALER MIXED UP IN GLOBAL CARTELS WHEN HE ARRIVES IN WASHINGTON HE REALIZES THAT BILLIE HIS BRASSY GIRLFRIEND IS AN EMBARRASSMENT HE HIRES A JOURNALIST WILLIAM HOLDEN TO TEACH HER SOME CLASS HE DOES AND THE MOVIE SPUTTERS VULGAR BILLIE WAS FUNNY VIRTUOUS BILLIE IS A BORE THE STORY WASN'T CHANGED MUCH FOR THE 1993 VERSION WRITTEN BY DOUGLAS MCGRATH A PLAYWRIGHT AND NEW REPUBLIC COLUMNIST WHO COAUTHORED A VERY FUNNY HOLLYWOOD SATIRE CALLED BLOCKBUSTER A FEW YEARS AGO BUT UNLIKE THE ORIGINAL THE NEW VERSION DOESN'T LOSE ITS SNAP BECAUSE IT DOESN'T HAVE ANY TO BEGIN WITH MAYBE IT'S HARDER TO ACCEPT OUTANDOUT BIMBOSITY THESE DAYS BILLIE'S IGNORANCE OF REALLY BASIC FACTS OF HISTORY FOR EXAMPLE THAT PRESIDENT KENNEDY LIVED IN THE WHITE HOUSE IS HARD TO BUY ESPECIALLY FOR SOMEONE FROM CHICAGO SHE WATCHES TELEVISION ALL RIGHT SOAP OPERAS BUT OVER THE YEARS SHE MUST HAVE BEEN EXPOSED TO AN OCCASIONAL NEWS BREAK THIS LAPSE IN LOGIC MIGHT HAVE BEEN OVERCOME BY SPRIGHTLIER DIRECTION BUT LUIS MANDOKI BEST KNOWN IF THAT'S THE WORD FOR WHITE PALACE DOESN'T HAVE A LIGHT TOUCH BILLIE DOESN'T SEEM BLITHELY BAWDY SHE SEEMS TO SUFFER FROM MILD DEPRESSION AND EVEN THE WASHINGTON JOKES HAVE HAD THE FIZZ TAKEN OUT OF THEM THOUGH THE INSIDE JOKE WORKS WELL ENOUGH CASTING FORMER WASHINGTON POST EDITOR BENJAMIN BRADLEE AND HIS WIFE SALLY QUINN AS A BRIBETAKING OFFICIAL AND HIS WIFE MS GRIFFITH'S HUSBAND DON JOHNSON WEARS GLASSES SO WE KNOW RIGHT AWAY HE'S THE TUTOR JOHN GOODMAN HAS BEEN PUT IN THE BRODERICK CRAWFORD ROLE MUCH SOFTENED FOR HIS COMFORT IN THIS REUPHOLSTERED BORN YESTERDAY THIS INFLUENCEBUYING BUSINESSMAN IS GIVEN A CUTE SIDE WE SEE HIM BOOGIEING WITH BILLIE AT A NIGHT CLUB EITHER THIS IS PART OF MR GOODMAN'S STANDARD CONTRACT HE SEEMS TO BOOGIE IN EVERY MOVIE WHETHER IT'S BOOGIEFRIENDLY OR NOT OR IT'S MEANT TO GIVE US SOME UNDERSTANDING OF WHY BILLIE STAYS WITH HIM APPARENTLY JEWELS AND GOWNS DON'T EXPLAIN ROMANCE THE WAY THEY USED TO ALMOST NOTHING HAS BEEN ALTERED IN CONVERTING THE FRENCH ACTION PICTURE LA FEMME NIKITA RELEASED IN THE US TWO YEARS AGO INTO THE AMERICAN ACTION PICTURE POINT OF NO RETURN LIKE THE ORIGINAL THIS IS THE STORY OF A BRUTAL STREETPUNK WOMAN WHO KILLS IS CONDEMNED TO DIE AND THEN IS RESURRECTED BY A GOVERNMENT AGENT THIS PYGMALION TEACHES HIS GRUNGY GALATEA HOW TO TALK TO DRESS TO BEHAVE PROPERLY AND SENDS HER BACK OUT ON THE STREETS TO KILL LEGALLY FOR THE GOVERNMENT BUT NOW THAT SHE'S BEEN REHABILITATED SHE DOESN'T LIKE TO KILL ANYMORE AND HER NEW LIFE MAKES HER SAD LUC BESSON THE DIRECTOR OF THE FRENCH ORIGINAL GAVE HIS FILM BOTH THE PANACHE AND THE IRRITATING QUALITY OF THE BEST MUSIC VIDEOS THE SENSE THAT A GOODLOOKING SURFACE COULD COVER AN ESSENTIAL SHALLOWNESS NIKITA WAS A PERFECT SUBJECT FOR AMERICANIZATION BECAUSE IT WASN'T A FRENCH FILM REALLY SO MUCH AS A FULLLENGTH MUSIC VIDEO WHOSE NOMINAL SUBJECT WAS CRIME IT HAD NO CULTURAL BAGGAGE JUST THE UNIVERSAL CULTURE OF COMMERCIALS AND MUSIC VIDEO BUT ANNIE PARILLAUD WHO PLAYED NIKITA WAS A GREAT CHAMELEON HER CHARACTER'S TRANSFORMATIONS WENT BEYOND THE PHYSICAL YOU COULD SEE HER SPIRIT CHANGING WITH BRIDGET FONDA WHO PLAYS MAGGIE THE AMERICAN NIKITA THERE ARE NO DEPTHS IMPLIED OR ACTUAL SHE'S JUST ANOTHER PRETTY FACE PRETENDING TO BE UGLY SHE SNARLS THEN SHE HESITATES AND YOU SEE THAT CHANGES ARE SUPPOSED TO HAVE OCCURRED BUT YOU HAVE NO WAY OF KNOWING HOW OR WHY FOR COMMERCIAL PURPOSES THAT'S PROBABLY JUST FINE WHAT THE AUDIENCE SEEMS TO RESPOND TO IS THE SIGHT OF A SLIGHT WOMAN DEFTLY HANDLING BIG GUNS SO IN THIS ATMOSPHERE OF NONORIGINALITY WHY NOT HAVE A FOURTH MOVIE VERSION OF MARK TWAIN'S THE ADVENTURES OF HUCKLEBERRY FINN THE LATEST CALLED THE ADVENTURES OF HUCK FINN IS A WALT DISNEY RELEASE AND TREATS THE STORY IN THE CLASSIC DISNEY MANNER IT'S PEPPY AND ENTERTAINING AND MAKES ITS MORAL POINTS WITH HUMOR AND COMPASSION THOUGH IT ISN'T NECESSARY TO KNOW ANYTHING AT ALL ABOUT HOW FILMS ARE MADE TO ENJOY THEM THE TECHNICAL SIDE OF MOVIES CAN HAVE MAGIC TOO THAT'S MADE VERY PLAIN IN A FASCINATING AND ENJOYABLE DOCUMENTARY ABOUT THE WORK CINEMATOGRAPHERS DO CALLED VISIONS OF LIGHT AFTER LISTENING TO THE MOST TALENTED CRAFTSMEN IN THE BUSINESS TALK ABOUT WHAT THEY DO YOU'LL LOOK AT MOVIES YOU'VE KNOWN FOREVER AS IF THEY WERE SOMETHING NEW VIDEO TIP THE SUBJECT OF LA FEMME NIKITA THE RECONDITIONING OF A VIOLENT PUNK CAN BE DEVASTATING MATERIAL IN THE HANDS OF A GREAT FILMMAKER LOOK AT WHAT STANLEY KUBRICK DID WITH A CLOCKWORK ORANGE HIS FUTURISTIC SATIRE OF A DEHUMANIZED SOCIETY BASED ON THE ANTHONY BURGESS NOVEL UNLIKE NIKITA AND ITS REMAKE WHICH ONLY SEEM TO BE ABOUT SOMETHING CLOCKWORK ORANGE REALLY WAS ABOUT SOMETHING 9304010059 930401 BUSINESS BRIEF ELDEC CORP FISCAL FOURTHQUARTER NET WAS AT LOW END OF FORECASTS ELDEC CORP SAID FISCAL FOURTHQUARTER EARNINGS WERE AT THE LOW END OF ANALYSTS' EXPECTATIONS BECAUSE OF HIGH SEVERANCE COSTS FOR THE PERIOD ENDED MARCH 28 THE LYNNWOOD WASH COMPANY SAID IT EXPECTS TO POST EARNINGS OF FIVE CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC ANALYSTS HAD PREDICTED EARNINGS OF FIVE CENTS TO 12 CENTS A SHARE IN THE PREVIOUS FOURTH QUARTER THE MAKER OF AEROSPACE ELECTRONICS POSTED A NET LOSS OF 36000 OR ONE CENT A SHARE ON REVENUE OF 288 MILLION THE COMPANY SAID IT HAS LAID OFF 78 EMPLOYEES AND 17 CONTRACT WORKERS BECAUSE OF THE SLOWDOWN IN THE AEROSPACE INDUSTRY COSTING IT ABOUT 600000 IN SEVERANCE EXPENSES BUT REDUCING OPERATING COSTS FOR THE YEAR BY 4 MILLION IN OVERTHECOUNTER TRADING YESTERDAY ELDEC STOCK WAS QUOTED AT 6 UP 50 CENTS 9304010058 930401 STOCK PICKS OF 2ND PERIOD LOOK FAMILIAR AS CYCLICALS' GET ANOTHER GOROUND BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STICK WITH THE WINNERS ANALYSTS SAY MANY OF THE BESTPERFORMING STOCK GROUPS FROM THE FIRST QUARTER WILL STAY AHEAD OF THE PACK IN THE SECOND QUARTER THEY EXPECT A GROWING ECONOMY TO CONTINUE POWERING ECONOMICALLY SENSITIVE CYCLICAL STOCKS HIGHER FOR A THIRD CONSECUTIVE QUARTER EVEN AS HEALTHCARE AND DRUG STOCKS CONTINUE TO SAG CYCLICAL STOCKS HAVE FLOURISHED SINCE THE LAST QUARTER OF 1992 WHEN SIGNS BEGAN EMERGING THAT THE RECOVERY WAS ON SOLID FOOTING AND IN THE FIRST QUARTER OF THIS YEAR INVESTORS BEGAN SHIFTING THEIR FOCUS FROM EARLY CYCLICALS THAT PERFORM WELL IN THE FIRST STAGES OF A RECOVERY SUCH AS HOME FURNISHINGS AND APPAREL RETAILERS TO SUCH LATE CYCLE STOCKS AS HEAVY MACHINERY AND BUILDING MATERIALS NOW ANALYSTS EXPECT INVESTORS TO CONTINUE TO ROOT AROUND FOR BARGAINS IN THE LAGGING DEEP CYCLICAL INDUSTRIES SUCH AS CHEMICALS AND PAPER PRODUCTS AT THE SAME TIME ANALYSTS PREDICT THAT ONE OF THE HOTTEST GROUPS DURING THE FIRST QUARTER SEMICONDUCTORS WILL SUFFER SUSTAINED PROFITTAKING WE'LL SEE SOME DIFFERENTIATION WITHIN THE CYCLICAL SECTOR SAYS PETER CANELO CHIEF MARKET STRATEGIST AT NATWEST SECURITIES THE NEW QUARTER BEGINS ON AN UNCERTAIN NOTE FOR BELEAGUERED HEALTHCARE AND DRUG STOCKS WHICH REMAIN UNDER THE CLOUD OF THE CLINTON ADMINISTRATION'S HEALTHCARE REFORM PROGRAM SOME ANALYSTS SUGGEST THE STOCKS MAY GET A TEMPORARY BOUNCE ONCE THE HEALTHCARE PLAN IS REVEALED IN MAY IF FOR NO OTHER REASON THAN THE END OF THE UNCERTAINTY THAT HAS PLAGUED THE STOCKS SINCE NOVEMBER'S ELECTION WE MAY SEE THE GROUP TEST OR EVEN BREAK BELOW THE LOWS OF LATE FEBRUARY AND EARLY MARCH MR CANELO PREDICTS BUT ONCE WE SEE THE PLAN SOME OF THE UNCERTAINTY WILL BE RESOLVED AND HEALTH CARE WILL THEN ATTEMPT TO RALLY AS THE QUARTER ENDS IN ANY EVENT HE SAYS THE HEALTHCARE PLAN WILL HAVE A PROFOUND IMPACT ON THE STOCK AND BOND MARKETS HE SEES INTEREST RATES CLIMBING AND THE STOCK AND BOND MARKETS SUFFERING AFTER THE PLAN IS ANNOUNCED AS INVESTORS REALIZE ITS ENORMOUS COSTS MAY HINDER DEFICITREDUCTION EFFORTS THE DOW JONES INDUSTRIAL AVERAGE MAY HIT NEW HIGHS EARLY IN THE QUARTER BUT THEN AS RATES BACK UP LATER IN THE QUARTER WE'LL SEE A BREAK MR CANELO SAYS WE'LL PROBABLY SEE A MORE VOLATILE PERIOD THAN THE ONE WE JUST FINISHED FEARS OF INFLATION AND RISING INTEREST RATES WON'T BE GOOD FOR EITHER STOCKS OR BONDS HE SAYS WITH A FEW EXCEPTIONS SOME OF THE LAGGARD DEEP CYCLICAL STOCKS WHICH WOULD BENEFIT FROM HIGHER PRICES SUCH AS PAPERS AND CHEMICALS SHOULD GET A BOOST AT THAT POINT MR CANELO SAYS JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH EXPECTS THE STOCK MARKET TO BE BUFFETED BY BOTH ECONOMIC AND POLITICAL TRENDS THE SECOND QUARTER WILL BE A CRITICAL ONE FOR THE STOCK MARKET IN THE SENSE THAT WE HAVE HEALTHCARE REFORM DOMINATING THE POLITICAL LANDSCAPE AND AT THE SAME TIME WE NEED TO SEE PROOF THE ECONOMY IS CONTINUING ITXPANSION AT AN ACCEPTABLE PACE HE SAYS SOME BANKS AND INSURANCE STOCKS THAT PERFORMED RELATIVELY WELL DURING THE QUARTER MAY LOSE SOME OF THEIR LUSTER MR SOLLOWAY SAYS THESE INTERESTRATE SENSITIVE STOCKS HAVE BENEFITED FROM FALLING RATES BUT MR SOLLOWAY THINKS THE DOWNWARD TREND IN RATES IS NEAR AN END WE'RE VERY CLOSE TO THE BOTTOM ON RATES HE SAYS I DON'T EXPECT THEM TO SHOOT UP BUT I BELIEVE THE ECONOMY WILL CONTINUE ITS RECOVERY AND I'D SHY AWAY FROM MAKING BIG COMMITMENTS TO INTERESTRATE SENSITIVE STOCKS MR SOLLOWAY FINDS PROMISE IN THE BEATENDOWN TOBACCO GROUP NOTABLY PHILIP MORRIS COS HE LIKES THE COMPANY'S EXPANSION INTO LESSDEVELOPED COUNTRIES AND ITS DIVERSIFICATION INTO AREAS OTHER THAN TOBACCO HE CONCEDES THAT THE COMPANY FACES DECLINING US CIGARETTE CONSUMPTION BUT NOTES ITS OVERSEAS MARKETS REMAIN STRONG THE STOCK HAS BEEN POUNDED AS INVESTORS AWAIT THE CLINTON ADMINISTRATION'S PLANNED INCREASE IN THE CIGARETTE TAX THE STOCK HAS BEEN THE VICTIM OF HYSTERIA AND IT MAY STILL HAVE SOME FURTHER WEAKNESS IN THE NEAR TERM BECAUSE OF THE UNCERTAINTY ABOUT THE TAX MR SOLLOWAY SAYS BUT AFTER WE SEE WHAT MEASURES ARE TAKEN THE REDUCTION IN THE UNCERTAINTY WILL HELP USHER IN A MORE RATIONAL VIEW OF THE POSITIVE ASPECTS OF THE COMPANY HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY IS LOOKING FOR SOME STRONG PERFORMERS FROM THE FIRST QUARTER TO CONTINUE LEADING THE PACK HE POINTS TO MINING STOCKS WHICH SHOT INTO THE TOP RANKS IN THE FIRST QUARTER AFTER LAGGING FAR BEHIND MOST OTHER INDUSTRY GROUPS FOR SOME TIME MINING WILL BENEFIT FROM CONTINUED IMPROVEMENT IN THE ECONOMY AND ANY INCREASES IN INFLATION HE SAID ENERGY STOCKS PARTICULARLY OILS ALSO ARE PEGGED FOR STRONG GAINS IN THE SECOND QUARTER AS THE ECONOMY AND INFLATION PICK UP ANALYSTS SAY THAT OILS ARE ATTRACTIVE INCOME PLAYS FOR THEIR RELATIVELY HIGH YIELDS AND ARE THEREFORE CONSIDERED LOWERRISK INVESTMENTS IN UNCERTAIN TIMES MR JOHNSON SINGLES OUT THE LONGSIZZLING SEMICONDUCTOR GROUP FOR A LESSTHANSTELLAR PERFORMANCE THIS QUARTER SEMICONDUCTORS HAVE SURGED AS COMPANIES INVESTED IN TECHNOLOGY TO REDUCE LABOR COSTS MR JOHNSON POINTS OUT THAT WHILE THE ECONOMY HAS GROWN AT AN AVERAGE 24 RATE FOR THE LAST SIX QUARTERS SPENDING ON INFORMATIONPROCESSING EQUIPMENT HAS SOARED AN AVERAGE 182 SEMICONDUCTORS HAVE GONE UP FOR SOUND FUNDAMENTAL REASONS MR JOHNSON SAYS BUT THEY'VE DISCOUNTED ALL THE GOOD THINGS THAT'LL HAPPEN AND THEN SOME NOTE INCLUDES COMMON STOCKS PRICED AT 2 OR MORE AT START OF QUARTER 9304010057 930401 MARKETING BRIEF NOTED WHO'S NEWS NEWS CORP'S FOX INC SAID JAMES F GRIFFITH WAS NAMED PRESIDENT PAY TELEVISION AND INTERNATIONAL HOME VIDEO TWENTIETH CENTURY FOX ITS MOVIE DIVISION HE HAD BEEN EXECUTIVE VICE PRESIDENT IN THAT DIVISION 9304010056 930401 BUSINESS BRIEF AT CROSS CO COMPANY MULLS POSSIBLE SALE OF ITS MARK CROSS SUBSIDIARY AT CROSS CO UNDER PRESSURE FROM INVESTORS TO SELL OFF ITS UNPROFITABLE LEATHERGOODS BUSINESS SAID IT'S DISCUSSING THE SALE OF ITS MARK CROSS SUBSIDIARY WITH A POTENTIAL BUYER THE LINCOLN RI COMPANY DIDN'T PROVIDE DETAILS SEEKING TO DIVERSIFY INTO THE LEATHER GIFTS BUSINESS THE WRITING INSTRUMENTS FIRM PURCHASED MARK CROSS IN 1983 WHILE LEATHERGOODS SALES EQUALED ABOUT 15 OF THE COMPANY'S OVERALL BUSINESS IN 1992 OR 322 MILLION MARK CROSS ACCOUNTED FOR ONLY A SMALL PERCENTAGE OF THE LEATHER SEGMENT SAID MICHAEL ELHILLOW CHIEF FINANCIAL OFFICER HE DECLINED TO BE MORE SPECIFIC MANNETTIFARROW THE COMPANY'S OTHER LEATHERGOODS SUBSIDIARY HAS BEEN RESPONSIBLE FOR MOST OF THE PARENT COMPANY'S LEATHERGOODS SALES MR ELHILLOW SAID THE PROBLEM ANALYSTS ARE FINDING WITH THIS LEATHER SIDE OF AT CROSS IS THAT IT HAS BEEN LOSING MONEY SAID ALEXANDER PARIS SR ANALYST FOR BARRINGTON RESEARCH ASSOCIATES THE COMPANY REPORTED A 24 MILLION OPERATING LOSS FROM RUNNING THE LEATHERGOODS SEGMENT IN 1992 9304010055 930401 TECHNOLOGY BRIEF LIPOSOME TECHNOLOGY INC COUNTERCLAIM FILED IN RIFT WITH VESTAR OVER A PATENT LIPOSOME TECHNOLOGY INC OF MENLO PARK CALIF SAID IT HAS FILED A COUNTERCLAIM IN A PATENT DISPUTE WITH COMPETITOR VESTAR INC OVER A PROCESS FOR MAKING ANTIFUNGAL DRUGS AT ISSUE IS A PATENT AWARDED TO LIPOSOME TECHNOLOGY IN JANUARY FOR A PROCESS TO FREEZEDRY SUBMICROSCOPIC SPHERES CALLED LIPOSOMES WHICH CARRY THE ANTIFUNGAL DRUG AMPHOTERICIN B THE COMPANY DOES NOT YET MARKET THE DRUG BUT HAS SAID THAT THE PATENT COULD STOP COMPETITORS FROM SELLING A SIMILAR FORMULATION IN THE US VESTAR OF SAN DIMAS CALIF FILED SUIT IN FEDERAL COURT IN DELAWARE IN JANUARY SEEKING TO GET LIPOSOME TECHNOLOGY'S PATENT DECLARED INVALID VESTAR ALSO ASKED THE COURT TO RULE THAT ITS OWN ANTIFUNGAL TREATMENT CALLED AMBISOME DOESN'T INFRINGE ON LIPOSOME'S PATENT IN ITS ACTION LIPOSOME TECHNOLOGY ASKED THE COURT TO DECLARE ITS PATENT VALID AND TO DENY VESTAR'S CLAIM OF NONINFRINGEMENT LIPOSOME IS ALSO SEEKING A CHANGE OF VENUE TO FEDERAL COURT IN CALIFORNIA A VESTAR SPOKESMAN CALLED THE COUNTERCLAIM LEGAL JOCKEYING ADDING THAT LIPOSOME TECHNOLOGY HASN'T CHARGED VESTAR WITH ACTUAL PATENT INFRINGEMENT IN THE MATTER 9304010054 930401 BUSINESS BRIEF BELLSOUTH CORP SEVERE WEATHER CUT PROFIT BY AS MUCH AS 25 MILLION BELLSOUTH CORP SAID IT EXPECTED ITS FIRSTQUARTER EARNINGS TO BE REDUCED BY ABOUT 20 MILLION TO 25 MILLION OR FIVE CENTS A SHARE FROM COSTS ASSOCIATED WITH SEVERE WINTER WEATHER IN ITS SOUTHEASTERN TERRITORY THE ATLANTABASED REGIONAL BELL TELEPHONE COMPANY SAID IT HADN'T YET FINISHED ASSESSING ITS UNUSUAL EXPENSES FROM SEVERE WEATHER IN THE AREAS WHERE IT PROVIDES LOCAL TELEPHONE SERVICE BELLSOUTH SAID IT EXPERIENCED UNUSUAL LABOR AND MATERIAL EXPENSES TO MAINTAIN AND RAPIDLY RESTORE TELEPHONE SERVICE SNOW ICE TORNADOES AND HIGH WINDS THAT SWEPT THROUGH BELLSOUTH'S TERRITORY IN MARCH FOR EXAMPLE DOWNED EXPOSED TELEPHONE LINES AND POLES GENERATING ALMOST 59000 TROUBLE REPORTS FROM ITS MORE THAN 186 MILLION ACCESS LINES IN THE 1991 FIRST QUARTER BELLSOUTH HAD NET INCOME OF 4609 MILLION OR 94 CENTS A SHARE WHICH INCLUDED A GAIN OF EIGHT CENTS A SHARE FROM A TAX SETTLEMENT 9304010053 930401 FORMER BANK OFFICIAL IS CONVICTED OF CHARGES LINKED TO BCCI SCANDAL ATLANTA AP A JURY CONVICTED A FORMER NATIONAL BANK OF GEORGIA OFFICIAL OF CHARGES THAT GREW OUT OF THE GOVERNMENT'S INVESTIGATION OF BCCI HOLDINGS LUXUMBERG SA WILLIAM W BATASTINI A FORMER SENIOR VICE PRESIDENT AND COMPTROLLER OF NBG WAS CONVICTED YESTERDAY OF CONSPIRING TO DEFRAUD THE INTERNAL REVENUE SERVICE TO RECEIVE A BRIBE AND TO MISAPPLY BANK FUNDS HE ALSO WAS CONVICTED OF FILING A FALSE INCOME TAX RETURN HE FACES UP TO 33 YEARS IN PRISON AND FINES OF 138 MILLION AT A SENTENCING JUNE 10 MR BATASTINI A FORMER IRS AGENT WAS INDICTED IN SEPTEMBER ALONG WITH THREE OTHER BANKING OFFICIALS FORMER NBG OWNER GHAITH PHARAON A SAUDI BUSINESSMAN FORMER NGB OFFICER TARIQ JAMIL AND FORMER BCCI OFFICER SWALEH NAQVI THE OTHER THREE MEN REMAIN FUGITIVES MR BATASTINI WAS ACCUSED OF RECEIVING A BRIBE IN 1987 FROM BCCI AND MR PHARAON IN RETURN FOR FAVORS FOR BCCI INCLUDING USING 600000 OF NBG MONEY TO PAY INTEREST MR PHARAON OWED ON A PERSONAL LOAN MR BATASTINI ALSO WAS ACCUSED OF TAKING 95000 FROM OTHERS IN A WAY INTENDED TO CONCEAL IT AS TAXABLE INCOME BCCI PLEADED GUILTY A YEAR AGO TO FEDERAL RACKETEERING CHARGES AND AGREED TO FORFEIT 550 MILLION IN ASSETS 9304010052 930401 BUSINESS BRIEF LONE STAR INDUSTRIES INC DECISION BY COURT DENYING NEW TRIAL TO BE APPEALED LONE STAR INDUSTRIES INC SAID IT WILL APPEAL A RECENT COURT DECISION DENYING IT AND SOME AFFILIATES A NEW TRIAL AND ADDITIONAL DAMAGES IN A SUIT AGAINST LAFARGE CORP AND ITS LAFARGE CANADA INC UNIT THE MARCH 26 DECISION BY A FEDERAL JUDGE IN MARYLAND INVOLVES THE SALE OF DEFECTIVE CEMENT BY LAFARGE AND ITS UNIT TO LONE STAR A STAMFORD CONN CEMENT COMPANY THE CEMENT WAS USED TO MAKE CONCRETE CROSSTIES FOR RAIL LINES SOME OF WHICH FAILED LONE STAR WAS SUED BY THE RAILROADS THAT BOUGHT THE CROSSTIES LONE STAR SETTLED THE RAILROADS' CLAIMS FOR ABOUT 666 MILLION A JURY SUBSEQUENTLY AWARDED LONE STAR 12 MILLION IN DAMAGES FOR LOSS OF PROFITS BUT FOUND THAT THE COMPANY WASN'T ENTITLED TO BE INDEMNIFIED BY LAFARGE FOR THE SETTLEMENT AMOUNT AND LEGAL COSTS LONE STAR SAID IT WILL TAKE ITS CASE TO A FEDERAL APPEALS COURT LONE STAR IS IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS LAFARGE BASED IN RESTON VA IS A PRODUCER OF CEMENT AND OTHER CONSTRUCTION MATERIALS IT IS A UNIT OF FRANCE'S LAFARGECOPPEE SA 9304010051 930401 BUSINESS BRIEF MAGMA COPPER CO MINING CONCERN SAYS RAINS COST IT ABOUT 12 MILLION MAGMA COPPER CO SAID HEAVY RAINS IN DECEMBER AND JANUARY COST THE COMPANY ABOUT 12 MILLION AFTER TAXES IN SPITE OF THE PROBLEMS IT SAID IT WILL REPORT AT LEAST BREAKEVEN EARNINGS FOR THE FIRST QUARTER IN THE YEAREARLIER FIRST QUARTER THE TUCSON ARIZ COMPANY HAD NET INCOME OF 97 MILLION OR 24 CENTS A SHARE MAGMA SAID THE EFFECTS OF THE RAINS SHOULD BE LIMITED TO THE FIRSTQUARTER RESULTS AND THAT THE COST ESTIMATE DOESN'T REFLECT ANY POSSIBLE RECOVERY FROM INSURANCE THE COMPANY SAID ITS PINTO VALLEY AND SUPERIOR MINES IN ARIZONA GOT 17 INCHES OF RAIN IN THE TWO MONTHS ABOUT 80 OF NORMAL ANNUAL PRECIPITATION ASARCO INC SAID LAST WEEK IT EXPECTS THE RAINS TO COST IT ABOUT 20 MILLION IN THE FIRST QUARTER CYPRUS MINERALS CO SAID IN JANUARY IT EXPECTED THE RAINS TO TEMPORARILY RAISE COSTS AT ITS MINES PHELPS DODGE CORP HAS ESTIMATED THAT ITS FIRSTQUARTER OUTPUT HAS DECLINED LESS THAN 2 AND THAT THE RAINS WILL NOT HAVE A SIGNIFICANT IMPACT ON ITS EARNINGS 9304010050 930401 THE TIMBER SUMMIT A FOREST RISES FROM THE ASHES PRIVATELY BY DIXY LEE RAY WHEN PRESIDENT CLINTON FLIES INTO PORTLAND ORE FOR FRIDAY'S TIMBER SUMMIT HE MAY WEATHER PERMITTING GET A SPECTACULAR VIEW OF MOUNT ST HELENS THE STILLSIMMERING VOLCANO THAT ERUPTED WITH EXPLOSIVE FORCE ON MAY 18 1980 LEVELED TREES AS FAR AS 15 MILES TO THE NORTH AND OVER A 156SQUAREMILE AREA TEN PERCENT OF THE MOUNTAIN'S MASS DISSOLVED INTO ASH AND MORE THAN ONE BILLION BOARD FEET OF LUMBER WERE DOWNED IN A SINGLE MOMENT MOST ANIMAL LIFE WAS WIPED OUT BUT 13 YEARS LATER THE AREA IS A TESTIMONY TO THE SUCCESS OF A PURSUIT THAT THIS WEEKEND'S SUMMIT IS LIKELY TO IGNORE PRIVATESECTOR FOREST MANAGEMENT FOR WEEKS AFTER THE BIG ERUPTION AND AMID ALL THAT GRAY AND LIFELESS LANDSCAPE THE QUESTION PERSISTED WILL THIS AREA EVER SUPPORT A FOREST AGAIN MOST PEOPLE INCLUDING MANY BIOLOGISTS BELIEVED THAT YEARS WOULD PASS DECADES OR MAYBE EVEN CENTURIES BEFORE THE LAND COULD RECOVER HOW WRONG THEY WERE ON THE GOVERNMENT LAND CONGRESS IN 1982 ESTABLISHED A 110000ACRE NATIONAL VOLCANIC MONUMENT WHERE NATURE HAS BEEN ALLOWED TO TAKE ITS COURSE UNPERTURBED AND UNAFFECTED BY HUMAN ACTIONS BUT ON NEIGHBORING PRIVATE LAND WEYERHAEUSER CO AND OTHERS SET TO WORK IMMEDIATELY SALVAGING THE DOWNED TREES AND PLANTING NEW SEEDLINGS THEY SAVED 850 MILLION BOARD FEET OF TIMBER ENOUGH TO BUILD 85000 THREEBEDROOM HOMES THE STAGE WAS SET FOR A GRAND DEMONSTRATION ON SIMILAR BUT SEPARATE PARCELS OF LAND SIDE BY SIDE ONE COULD OBSERVE AND COMPARE NATURAL RECOVERY WITH MANAGED AND ASSISTED RECOVERY WITHIN A YEAR OR TWO THE RETURN OF LIFE BOTH PLANT AND ANIMAL WAS REMARKABLE TODAY THE DIFFERENCES BETWEEN THE NATURAL AND THE MANAGED AREAS ARE DRAMATIC BOTH ARE RECOVERING BUT THE UNDISTURBED PUBLIC LANDS LAG FAR BEHIND NATURE PROVED TO BE FAR MORE RESILIENT THAN MOST PEOPLE EXPECTED ON THE PRIVATE LAND WITHIN WEEKS OF THE ERUPTION EXPERIMENTAL PLANTINGS OF TREE SEEDLINGS WERE MADE TO DETERMINE THE ABILITY OF YOUNG TREES TO SURVIVE ON THE ASHCOVERED GROUND IT WAS FOUND THAT AS LONG AS THE SEEDLINGS' ROOTS COULD REACH THE SOIL UNDER THE ASH THE TREES WOULD SURVIVE USING THIS INFORMATION AND SCRAPING AWAY ASH WHERE NECESSARY 184 MILLION TREES WERE PLANTED ON 45500 ACRES BY 1987 TODAY THE NUMBER OF NEW PLANTINGS HAS REACHED NEARLY 16 BILLION THE RESULT OF THIS EFFORT IS A LUSH FOREST MOST OF THE PRE1987 PLANTINGS ARE BETWEEN 25 AND 30 FEET TALL UNDERGROWTH CARPETS THE GROUND AND WILDLIFE IS ABUNDANT MEANWHILE ON THE PUBLIC LAND NATURAL RECOVERY HAS TAKEN PLACE AT A CONSIDERABLY SLOWER PACE THE SAME SPECIES OF PLANTS FLOWERS AND GRASSES HAVE OCCURRED AS HAVE A NUMBER OF TREES BUT THE GROWTH HAS BEEN FAR SLOWER AND THE TREES MORE SPARSE THAN ON THE MANAGED LAND MOREOVER THE REFORESTED GROWTH ON PRIVATE LAND IS NOT SIGNIFICANTLY DIFFERENT FROM THE ORIGINAL PRE1980 FOREST BELOW THE SLOPES OF THE VOLCANO BEFORE THE ERUPTION THERE WAS AN ALMOST UNBROKEN EXPANSE OF EVERGREENS INCLUDING DOUGLAS FIR SOME OF THESE WERE GIANTS OF 400 YEARS IN AGE NOBLE FIR PACIFIC SILVER FIR AND WESTERN RED CEDAR THE UNDERGROWTH WAS ALSO EXTENSIVE AND DIVERSE A FOURSQUAREMILE REMNANT OF THIS OLD GROWTH WAS SHIELDED BY A RIDGE FROM THE VOLCANIC BLAST AND REMAINS AS A STRIKING EXAMPLE OF VIRGIN NORTHWEST FOREST IT CAN BE COMPARED TO THE PUBLIC AND PRIVATE REFORESTED RECOVERY AREAS CLOSER TO THE MOUNTAIN WHO CAN SAY EXCEPT ON A SUBJECTIVE EMOTIONAL BASIS WHICH FOREST IS BETTERTHE OLD UNTOUCHED ONE THAT EVOLVED SLOWLY OVER MANY DECADES OR THE NEWLY REPLANTED ONE BOTH HAVE APPROXIMATELY THE SAME COMPLEX OF TREE SPECIES AND VARIED UNDERGROWTH AND THE SAME WILDLIFE BIRDS AND INSECTS INHABIT BOTH DECIDING THAT ONE FOREST SURPASSES THE OTHER IS A VALUE JUDGMENT HEAVILY INFLUENCED BY WHAT ONE BELIEVES A FOREST IS FOR IT IS TRUE THAT THE HISTORY OF AMERICAN PRIVATE FOREST MANAGEMENT HAS BEEN MIXED BUT ON THE WHOLE IT HAS BEEN EXTREMELY SUCCESSFUL OF THE 36 MILLION SQUARE MILES THAT CONSTITUTE THE US TODAY 113 MILLION SQUARE MILES OR 32 ARE WOODED FROM COLONIAL DAYS TO THE MID19TH CENTURY THERE WAS CONSIDERABLE DEFORESTATION MOST OF THE ONCE EXPANSIVE EASTERN HARDWOOD FOREST WAS CUT BEFORE 1900 AS THE SETTLERS CLEARED LAND FOR AGRICULTURE UP TO ABOUT 1920 THE CLASSIC ROBBERBARON CUT AND RUN PHILOSOPHY DOMINATED BUT BEGINNING EARLY IN THIS CENTURY FORESTRY STARTED TO CHANGE IN 1909 HENRY E HARDTNER OWNER OF LOUISIANA'S URANIA LUMBER CO ADMONISHED HIS CONTEMPORARIES TO PROTECT YOUR REMAINING FORESTS AND COMMENCE AT ONCE THE REFORESTATION OF YOUR DENUDED AREAS INDEED IT WAS THE FOREST INDUSTRY ITSELF THAT PROVIDED THE LEADERSHIP AND CAPITAL TO ESTABLISH THE REFORESTATION MOVEMENT A MOVEMENT WHOSE OUTLOOK NOW PREVAILS THROUGHOUT THE INDUSTRY TODAY THE EVERGREENDOMINATED FORESTS OF NEW ENGLAND AND THE OLD SOUTH HAVE REGROWN IN THE SOUTHEAST MANY MANAGED FORESTS AND TREE PLANTATIONS HAVE EXTENSIVELY REFORESTED THE LAND REFORESTATION IN MAINE MAKES THAT STATE OUR MOST HEAVILY WOODED 90 OF ITS SURFACE AREA IS COVERED WITH FORESTS IT'S TIME TO GET RID OF LONGOUTDATED STEREOTYPES ABOUT RAPACIOUS TIMBER COMPANIES THAT SLASH AWAY AT PRISTINE FORESTS WITHOUT CONCERN FOR THEIR PRESERVATION PRESIDENT CLINTON AND VICE PRESIDENT AND ENVIRONMENT CZAR AL GORE ARE IN A POSITION TO DO JUST THAT THE WHITE HOUSE SAYS THE PURPOSE OF THE FOREST SUMMIT IS TO LEARN HOW THE FEDERAL GOVERNMENT CAN PROVIDE LEADERSHIP AND ENCOURAGE NEW INNOVATIVE AND CREATIVE APPROACHES TO ADDRESSING THE FORESTMANAGEMENT CONTROVERSY BUT THE MOUNT ST HELENS CASE PROVES THAT PRIVATE COMPANIES EMPLOYING STATEOFTHEART REFORESTING TECHNIQUES ARE LEADING THE WAY IN FOREST MANAGEMENT INNOVATION AS THEY ALWAYS HAVE AND THEY ARE DOING IT WITHOUT THE GOVERNMENT'S HELP MS RAY WAS GOVERNOR OF WASHINGTON STATE FROM 1977 TO 1981 AND IS A FORMER HEAD OF THE ATOMIC ENERGY COMMISSION THIS ARTICLE IS ADAPTED FROM HER BOOK ENVIRONMENTAL OVERKILL DUE OUT THIS MONTH FROM REGNERY GATEWAY 9304010049 930401 BUSINESS BRIEF AG EDWARDS INC BROKERAGE FIRM HAD RECORD FOURTH QUARTER YEAR PROFIT AG EDWARDS INC THE BIGGEST US BROKERAGE FIRM OUTSIDE NEW YORK SAID STRONG STOCK MARKET VOLUMES AND CONTINUED LOW INTEREST RATES HELPED IT REACH RECORD EARNINGS FOR ITS FISCAL FOURTH QUARTER AND FULL YEAR ST LOUISBASED EDWARDS REPORTED FOURTHQUARTER NET INCOME OF 364 MILLION OR 78 CENTS A SHARE FOR THE PERIOD ENDED FEB 28 THE RESULTS WERE 18 HIGHER THAN YEAREARLIER EARNINGS OF 309 MILLION OR 68 CENTS A SHARE REVENUE DURING THE PERIOD WAS 3057 MILLION COMPARED WITH YEAREARLIER REVENUE OF 2689 MILLION BECAUSE OF ITS FISCALYEAR ARRANGEMENT AG EDWARDS IS ONE OF THE FIRST BIG BROKERAGE HOUSES TO REPORT ITS ANNUAL EARNINGS WHICH OFTEN ARE VIEWED AS A HARBINGER OF THE INDUSTRY'S RESULTS FOR THE YEAR EDWARDS EARNED 1194 MILLION OR 258 A SHARE ON REVENUE OF 11 BILLION COMPARED WITH EARNINGS OF 1055 MILLION OR 235 A SHARE ON REVENUE OF 9387 MILLION 9304010048 930401 BUSINESS BRIEF SCOTT INSTRUMENTS CORP FOURTHPERIOD LOSS PROMPTS AUDITOR TO QUESTION VIABILITY SCOTT INSTRUMENTS CORP REPORTED ITS FOURTHQUARTER LOSS WIDENED TO 495000 OR 11 CENTS A SHARE PROMPTING THE DENTON TEXAS COMPANY'S AUDITORS TO QUESTION AGAIN WHETHER SCOTT CAN STAY IN BUSINESS THE COMPANY SAID ERNST & YOUNG IN ITS NOTE TO SCOTT'S 1992 FINANCIAL REPORT RAISED DOUBTS ABOUT WHETHER SCOTT CAN REMAIN A GOING CONCERN WHILE SCOTT SAID THE NOTE WAS A DISAPPOINTMENT IT NOTED THAT THE SAME DOUBTS HAVE BEEN RAISED BY AUDITORS SINCE SCOTT WENT PUBLIC IN 1981 MARVIN PRESTON CHAIRMAN ATTRIBUTED THE LOSSES IN THE QUARTER TO THE TERMINATION OF SOME EMPLOYMENT CONTRACTS AND THE WRITEOFF OF 157000 IN BAD DEBT SCOTT DEVELOPS AUTOMATIC SPEECH RECOGNITION TECHNOLOGY USED TO CONTROL MACHINES WITH SPOKEN WORDS A YEAR EARLIER SCOTT REPORTED A LOSS OF 41000 OR ONE CENT A SHARE REVENUE FELL TO 483042 FROM 485007 A YEAR AGO 9304010047 930401 BUSINESS BRIEF GRANT TENSOR GEOPHYSICAL CORP NORWEGIAN COMPANY TO BUY DATA PROCESSING OPERATION GRANT TENSOR GEOPHYSICAL CORP CONTINUING TO EXPERIENCE OPERATING LOSSES SAID IT WILL SELL ITS DATA PROCESSING BUSINESS FOR 75 MILLION AND THE ASSUMPTION OF 121 MILLION IN LIABILITIES THE SALE SUBJECT TO A NUMBER OF CONDITIONS IS TO A NORWEGIAN COMPANY PETROLEUM GEOSERVICES AS THE HOUSTON COMPANY ALSO SAID IT WILL SUSPEND PAYMENT OF ITS MARCH 31 PREFERRED DIVIDEND AND DOESN'T EXPECT TO PAY FURTHER DIVIDENDS GRANT TENSOR YESTERDAY REPORTED A FOURTHQUARTER LOSS OF 359 MILLION OR 298 A SHARE ON REVENUE OF 226 MILLION THE LOSS INCLUDED ABOUT 25 MILLION IN CHARGES RELATED TO ASSET IMPAIRMENT AND OTHER WRITEOFFS IN THE FOURTH QUARTER OF 1991 THE COMPANY HAD A LOSS OF 700000 OR SIX CENTS A SHARE ON 291 MILLION OF REVENUE THE COMPANY ALSO SAID IT WAS NAMED IN A LAWSUIT FILED BY A PREFERRED SHAREHOLDER IN STATE CHANCERY COURT IN DELAWARE THE LAWSUIT CONCERNS THE ALLOCATION OF STOCK BETWEEN COMMON AND PREFERRED SHAREHOLDERS OUTLINED IN THE TERMS OF A PROPOSED MERGER WITH DIGICON INC 9304010046 930401 BUSINESS BRIEF EASTMAN KODAK CO PATENTINFRINGEMENT SUIT IS FILED AGAINST SONY CORP EASTMAN KODAK CO FILED A PATENTINFRINGEMENT LAWSUIT AGAINST JAPAN'S SONY CORP OVER A MAGNETIC RECORDING SYSTEM THE ROCHESTER NY PHOTOGRAPHY COMPANY SAYS IT INVENTED THE SYSTEM THE LAWSUIT ANNOUNCED YESTERDAY WAS FILED FEB 1 IN FEDERAL COURT IN MARSHALL TEXAS A SPOKESMAN FOR SONY SAID HE COULDN'T COMMENT BECAUSE THE COMPANY HASN'T YET SEEN THE LAWSUIT KODAK WHICH SEEKS UNSPECIFIED DAMAGES AND AN INJUNCTION AGAINST FURTHER INFRINGEMENT SAID THAT IT HAD TRIED TO REACH A LICENSING AGREEMENT FOR THE DEVICE WITH SONY AND OTHER COMPANIES A KODAK SPOKESMAN WOULDN'T ELABORATE ANALYSTS SAID THE MAGNETIC SYSTEM IS COMMONLY USED IN VIDEORECORDING EQUIPMENT KODAK WHICH IS ALSO BELIEVED TO BE WEIGHING SIMILAR ACTIONS OVERSEAS COULD WIN HUNDREDS OF MILLIONS OF DOLLARS IN ROYALTIES IF IT PREVAILS ACCORDING TO SOME ESTIMATES IT'S A BIG PRODUCT CATEGORY SAID EUGENE G GLAZER AN ANALYST WITH DEAN WITTER REYNOLDS 9304010044 930401 BUSINESS BRIEF UNOCAL CORP GEOTHERMAL OPERATIONS ARE SOLD TO MAGMA POWER UNOCAL CORP SAID IT COMPLETED THE SALE OF ITS GEOTHERMAL OPERATIONS IN SOUTHERN CALIFORNIA'S IMPERIAL VALLEY TO MAGMA POWER CO FOR 225 MILLION UNOCAL A LOS ANGELES OIL COMPANY SAID IT COULD ALSO RECEIVE AS MUCH AS 15 MILLION IN CONTINGENT PAYMENTS FROM MAGMA BECAUSE OF A 1 ROYALTY IT WILL RECEIVE ON REVENUE FROM ADDITIONAL POWER GENERATING CAPACITY UNOCAL WILL ALSO BE TURNING OVER CERTAIN GEOTHERMAL LEASES TO MAGMA BASED IN SAN DIEGO SEPARATELY UNOCAL SAID IT SOLD ITS 61 INTEREST IN ANOTHER GEOTHERMAL OPERATION THE 41000PLUS ACRE GLASS MOUNTAIN/MEDICINE LAKE FEDERAL UNIT TO CALIFORNIA ENERGY CO'S CALIFORNIA ENERGY GENERAL CORP UNIT TERMS WEREN'T DISCLOSED JOHN F IMLE PRESIDENT OF UNOCAL'S ENERGY RESOURCES DIVISION SAID THAT DESPITE THE SALES GEOTHERMAL ENERGY REMAINS A CORE BUSINESS FOR UNOCAL WITH OPERATIONS AT THE GEYSERS AREA NORTH OF SAN FRANCISCO AND IN THE PHILIPPINES WE INTEND TO REDEPLOY SOME OF THE PROCEEDS FROM THESE SALES TO PURSUE GROWTH OPPORTUNITIES OVERSEAS HE SAID 9304010043 930401 LETTERS TO THE EDITOR TESTING THE WATERS BEFORE THE LAUNCH WILLARD I ZANGWILL'S MARCH 8 MANAGER'S JOURNAL WHEN CUSTOMER RESEARCH IS A LOUSY IDEA EDITORIAL PAGE DISCUSSES TRADITIONAL CUSTOMER RESEARCH AND TEST MARKETING AS THOUGH THEY WERE MUTUALLY EXCLUSIVE AND THAT ONE SHOULD BE REJECTED OVER THE OTHER HE SUBMITS A NEGATIVE QUOTATION FROM A TEST USER OF A SUCCESSFUL PRODUCT AS EVIDENCE THAT CUSTOMER RESEARCH IS BAD AND IN THE NEXT BREATH STATES IF PINK IS A HOT SELLING COLOR THE COMPANY MAKES MORE PINK MODELS HARDLY PROFOUND OBSERVATIONS THE ROLE OF MARKETING RESEARCH IS TO REDUCE THE CHANCES OF MAKING A WRONG DECISION THE APPROPRIATE TECHNIQUE TO EMPLOY IS CLOSELY RELATED TO 1 THE PROFIT CONSEQUENCES OF A WRONG DECISION AND 2 THE EXTENT TO WHICH THE DECISION MAKERS AGREE ON WHAT MARKETING ACTION TO TAKE IF THE DECISION MAKERS AGREE ON WHAT MARKETING OPTION TO ADOPT EG WHETHER TO LAUNCH A NEW PRODUCT AND IF THE PROFIT CONSEQUENCES ARE LOW THEN LITTLE OR NO MARKETING RESEARCH CAN BE JUSTIFIED ON THE OTHER HAND WHEN BOTH DISAGREEMENT AND CONSEQUENCES ARE HIGH IT BEHOOVES MANAGEMENT TO ENGAGE IN EXTENSIVE RESEARCH PROF ZANGWILL SAYS ARTHUR D LITTLE INC DISCOVERED THAT OF ALL NEW CEREALS INTRODUCED TO THE MARKET 92 HAD FAILED WHAT IS A NEW PRODUCT WHAT ARE THE CRITERIA FOR FAILURE WERE ALL 92 SUBJECTED TO MARKETING RESEARCH WAS THE RESEARCH INTELLIGENTLY CONDUCTED ON ALL 92 SOME 50 YEARS AGO I FIRST HEARD THAT 80 OF ALL NEW PRODUCTS FAIL I HAVE BEEN HEARING ABOUT THAT ELUSIVE 80 EVER SINCE NOW IT HAS JUMPED TO 92 WHAT NONSENSE 9304010042 930401 BUSINESS BRIEF MOBLEY ENVIRONMENTAL SERVICES INC COMPANY EXPECTS TO REPORT NET LOSS FOR FIRST QUARTER MOBLEY ENVIRONMENTAL SERVICES INC SAID IT EXPECTS TO POST A FIRSTQUARTER LOSS OF 600000 TO 800000 COMPARED WITH A YEAREARLIER PROFIT OF 853000 OR 11 CENTS A SHARE THE AUSTIN TEXAS WASTE MANAGEMENT COMPANY BLAMED THE LOSS ON CHARGES RELATED TO COSTREDUCTION MEASURES INCLUDING SEVERANCE EXPENSES AND ON DETERIORATION IN ITS WASTEDERIVED FUELS BUSINESS THE COMPANY SAID IT ALSO EXPECTED TO RECORD A 280000 CHARGE FOR ENGINEERING EXPENSES RELATED TO AN ABANDONED PLANT EXPANSION IN WINONA TEXAS THE COMPANY SAID IT HAD BEEN SEEKING PERMITS FOR THE WINONA EXPANSION FROM THE TEXAS WATER COMMISSION SINCE 1991 BUT FINALLY DROPPED THE PROJECT IN AN EFFORT TO IMPROVE THE COMPANY'S RELATIONSHIP WITH THE LOCAL COMMUNITY MOBLEY ALSO SAID IT FORMED VENTURES WITH NORTRU INC AND CEMENTOS MEXICANOS SA UNDER A JOINTVENTURE AGREEMENT WITH NORTRU A PRIVATE WASTEDERIVED FUELS BLENDER BASED IN DETROIT THE COMPANIES WILL BLEND OIL REFINERY SLUDGE INTO WASTEDERIVED FUELS FOR USE BY CEMENT KILNS CEMENTOS MEXICANOS A CEMENT PRODUCER BASED IN MONTERREY MEXICO AND MOBLEY WILL EACH INVEST 20 MILLION TO FORM A COMPANY THAT WILL BUILD TWO FUELBLENDING PLANTS IN MEXICO MOBLEY WILL RECEIVE A 25 STAKE IN THE VENTURE 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 9304010041 930401 COMMODITIES CORN FUTURES PRICES EXPECTED TO DROP SOYBEANS WHEAT LIKELY TO RISE AFTER PLANTINGS ESTIMATES BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO A GOVERNMENT REPORT FORECASTING LARGERTHANEXPECTED CORN PLANTINGS IS EXPECTED TO PUSH CORN FUTURES PRICES DOWN TODAY THE US AGRICULTURE DEPARTMENT'S PROSPECTIVE PLANTINGS REPORT WHICH DISCLOSES DATA FROM A MARCH 1 GOVERNMENT SURVEY OF US FARMERS AND IS THE FIRST INDICATION OF THE POTENTIAL SIZE OF THIS SUMMER'S CROPS ALSO SHOWED SMALLERTHANEXPECTED PLANTINGS OF SOYBEANS AND WHEAT FUTURES PRICES FOR THESE TWO GRAINS ARE EXPECTED TO RISE TODAY PROJECTED PLANTINGS OF CORN THE NATION'S BIGGEST CROP WERE 7649 MILLION ACRES COMPARED WITH 79325 MILLION ACRES A YEAR AGO THE CORN ESTIMATE WAS ABOUT A MILLION ACRES ABOVE THE AVERAGE INDUSTRY ESTIMATE SAID DANIEL BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO AS A RESULT FUTURES PRICES SHOULD BE STEADY TO ONE CENT LOWER ALTHOUGH THE USDA REPORT PROJECTED RECORD PLANTINGS OF WHEAT THIS YEAR IT WAS NEVERTHELESS INTERPRETED AS BULLISH FOR WHEAT FUTURES PRICES MOST TRADERS HAD BEEN EXPECTING A SPRING WHEAT CROP OF MORE THAN 19 MILLION ACRES THE USDA ESTIMATED THE CROP AT 1896 MILLION ACRES UP FROM LAST YEAR'S RECORD CROP OF 18698 MILLION ACRES DURUM WHEAT PLANTINGS MEANWHILE DECLINED SIGNIFICANTLY FROM LAST YEAR THE USDA PROJECTED PLANTINGS OF 209 MILLION ACRES OF DURUM WHEAT A RECORD LOW ESTIMATE LAST YEAR FARMERS PLANTED 25 MILLION ACRES BECAUSE OF THE LOWERTHANEXPECTED WHEAT PLANTINGS FUTURES PRICES ARE EXPECTED TO RISE AS MUCH AS TWO CENTS A BUSHEL AT THE CHICAGO BOARD OF TRADE EARLY TODAY SOYBEANPLANTED ACREAGE WAS ESTIMATED AT 593 MILLION ACRES COMPARED WITH 5933 MILLION ACRES LAST YEAR WITH MOST IN THE INDUSTRY EXPECTING 60 MILLION ACRES OF SOYBEAN PLANTINGS THIS ESTIMATE IS EXPECTED TO PUSH FUTURES PRICES TWO TO FIVE CENTS HIGHER THIS MORNING AT THE CBOT THE SOYBEAN NUMBER WAS SURPRISING SAID BILL BIEDERMANN VICE PRESIDENT FOR RESEARCH AT ALLENDALE INC CRYSTAL LAKE ILL IT SUGGESTS A DRAWDOWN IN ENDING STOCKS OF SOYBEANS THE USDA REPORT ESTIMATED TOTAL PLANTED ACREAGE OF ALL MAJOR CROPS AT 2528 MILLION ACRES COMPARED WITH 2573 MILLION LAST YEAR SAID MR BASSE OF AGRESOURCE HISTORICALLY HOWEVER THE USDA HAS TENDED TO UNDERESTIMATE CROPS IN ITS PROSPECTIVE PLANTINGS REPORT HE SAID ALL EYES NOW WILL FOCUS ON THE MEETING BETWEEN PRESIDENT CLINTON AND RUSSIAN PRESIDENT BORIS YELTSIN IN VANCOUVER BRITISH COLUMBIA THIS WEEKEND SOME ANALYSTS EXPECT THAT AN ANNOUNCEMENT MAY BE MADE DURING THE SUMMIT ABOUT RESCHEDULING RUSSIA'S 458 MILLION IN DELINQUENT DEBT FOR GRAIN PURCHASES FROM THE US IN OTHER COMMODITY MARKETS YESTERDAY LIVESTOCK AND MEATS PORKBELLY FUTURES PRICES SURGED THE DAILY LIMIT ON LOWERTHANEXPECTED MOVEMENT OF FRESH PORK BELLIES INTO COLD STORAGE THE WEEKLY COLDSTORAGE REPORT RELEASED AFTER TRADING ON TUESDAY SHOWED A NET INWARD MOVEMENT OF 435000 POUNDS OF PORK BELLIES WHICH ARE UNCURED BACON MOST TRADERS WERE EXPECTING MUCH LARGER NET INWARD MOVEMENT OF 750000 TO 12 MILLION POUNDS OF PORK BELLIES SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS THE FIGURES WERE AN INDICATION THAT DEMAND FOR BACON REMAINS RELATIVELY STRONG AT A TIME OF YEAR WHEN BACON CONSUMPTION TENDS TO DROP OFF MR VAUGHT SAID THE PRICE OF THE PORKBELLY CONTRACT FOR MAY DELIVERY ROSE TWO CENTS TO 5057 CENTS A POUND PRECIOUS METALS A BOUT OF PROFITTAKING BY COMMODITY FUNDS TOOK SOME STEAM OUT OF GOLD'S RECENT SHARP RISE WITH THE ACTIVELY TRADED JUNE FUTURES CONTRACT SETTLING 50 CENTS HIGHER AT 33930 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE DEALERS AND ANALYSTS SAID ON TUESDAY GOLD FOR JUNE DELIVERY HAD ROCKETED NEARLY 5 AN OUNCE ON MOSTLY TECHNICAL GROUNDS BUT ALSO ON RENEWED CAUTIOUS BULLISHNESS ABOUT GOLD'S FUNDAMENTALS WE'RE PROBABLY IN A PERIOD OF BASEBUILDING FOR GOLD BUT EVENTUALLY IT WILL GO HIGHER SAID BERNARD SAVAIKO A METALS ANALYST WITH PAINEWEBBER GOLD'S RELATIVE STRENGTH WAS EVIDENT WHEN COMPARED WITH SILVER'S PERFORMANCE YESTERDAY ON THE COMEX THE ACTIVELY TRADED MAY SILVER CONTRACT CLOSED DOWN 08 CENT AT 3892 AN OUNCE PALLADIUM FUTURES ALSO SETTLED LOWER ON THE NEW YORK MERCANTILE EXCHANGE OFF 225 TO 110 AN OUNCE IN THE ACTIVE JUNE CONTRACT PLATINUM FOR JULY DELIVERY SETTLED 1 HIGHER AT 36350 AN OUNCE ENERGY PETROLEUM FUTURES WERE MOSTLY HIGHER IN THE WAKE OF THE INDUSTRY'S LATEST REPORT ON US FUEL INVENTORIES IN NEW YORK LIGHT LOWSULFUR CRUDE OIL FOR MAY DELIVERY ROSE 16 CENTS A BARREL TO SETTLE AT 2044 IN LONDON BRENT BLEND FUTURES CLOSED 23 CENTS TO 27 CENTS A BARREL HIGHER BUT TRADERS WERE CAUTIOUS AWAITING THE PRELIMINARY ESTIMATES OF AVERAGE DAILY PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FOR MARCH THE GUESSING IS THAT THE ESTIMATES DUE SHORTLY FROM MONITORS OF OPEC'S PRODUCTION WILL SHOW AVERAGE DAILY OUTPUT OF BETWEEN 24 MILLION AND 245 MILLION BARRELS A DAY THAT WOULD BE ABOVE OPEC'S CEILING OF 236 MILLION BARRELS A DAY BUT WELL BELOW ACTUAL OUTPUT IN FEBRUARY STILL FIGURES TOWARD THE UPPER END OF THE RANGE WOULD BE BEARISH ANALYSTS SAID PRICES IN BOTH NEW YORK AND LONDON DREW SUPPORT MEANWHILE FROM THE AMERICAN PETROLEUM INSTITUTE'S LATEST WEEKLY REPORT OF US OIL STATISTICS RELEASED LATE TUESDAY IT SHOWED INVENTORIES OF DISTILLATES AND GASOLINE DECLINED LAST WEEK BY 27 MILLION BARRELS AND 19 MILLION BARRELS RESPECTIVELY CRUDE INVENTORIES SURGED EIGHT MILLION BARRELS BUT THAT ONLY PARTLY OFFSET THE BIG DRAWDOWN OF 12 MILLION BARRELS IN THE PRECEDING WEEK COFFEE COFFEE FUTURES PRICES ROSE AS THE MARKET SEEMED TO EXPRESS A SIGH OF RELIEF AT THE COLLAPSE OF ILLFATED TALKS ON A NEW EXPORT QUOTA ON THE COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MAY DELIVERY SETTLED 190 CENTS HIGHER AT 586 CENTS A POUND PRICES WERE ALREADY REFLECTING THE WIDELY ANTICIPATED COLLAPSE IN THE TALKS SAID LAWRENCE EAGLES COFFEE ANALYST AT GNI LTD LONDON COMMODITY BROKERS ONCE THE NEWS WAS OUT DEALERS BEGAN BUYING AGAIN PLANS TO FORM A NEW COFFEE PRICESTABILIZATION PACT COLLAPSED AS THE MARCH 31 DEADLINE EXPIRED FOLLOWING 10 DAYS OF FUTILE NEGOTIATIONS BETWEEN REPRESENTATIVES OF PRODUCER AND CONSUMER NATIONS AS A RESULT OF THE FAILURE THE INTERNATIONAL COFFEE ORGANIZATION MIGHT BE REDUCED TO A MERE ADMINISTRATIVE AND STATISTICAL BODY WITHOUT POWER OF ENFORCEMENT DELEGATES SAID INSTEAD OF DISCUSSING SUCH OUTSTANDING ISSUES AS PRICEINTERVENTION RANGES THE TALKS WERE BOGGED DOWN BY ARGUMENTS ON WHEN ANY NEW PACT SHOULD BE REVIEWED DELEGATES SAID CONSUMERS WANTED A REVIEW OF A PACT TO TAKE PLACE AFTER THREE YEARS BUT PRODUCERS OPTED FOR A REEXAMINATION AFTER ONLY ONE YEAR A COMPROMISE COULDN'T BE REACHED AND THE NEGOTIATIONS FELL APART THESE ARGUMENTS WERE USED BY CONSUMERS AS A PLOY OR FILIBUSTER TO STYMIE ANY AGREEMENT ONE PRODUCERNATION DELEGATE SAID 9304010040 930401 BUSINESS BRIEF GTECH HOLDINGS CORP CALIFORNIA GOVERNOR ALLOWS LOTTERY TALKS TO CONTINUE FOLLOWING A REVIEW OF THE STATE'S LOTTERY BIDDING PROCESS CALIFORNIA GOV PETE WILSON CLEARED THE WAY FOR GTECH HOLDINGS CORP TO CONTINUE NEGOTIATIONS ON A 250 MILLION CONTRACT WITH THE STATE THE GOVERNOR HAD APPOINTED A PANEL TO REVIEW THE BIDDING PROCESS AFTER AUTOMATED WAGERING INTERNATIONAL INC A UNIT OF VIDEO LOTTERY TECHNOLOGIES INC COMPLAINED THE BIDDING SYSTEM FAVORED GTECH THE PANEL FOUND NO IMPROPRIETIES AND THE GOVERNOR ALLOWED THE TALKS TO PROCEED AUTOMATED WAGERING HAD ASSERTED THAT THE DEADLINE FOR INSTALLING A COMPUTERIZED SYSTEM WAS TOO EARLY FAVORING GTECH WHICH CURRENTLY RUNS THE STATE LOTTERY AUTOMATED WAGERING EXPRESSED DISAPPOINTMENT WITH THE GOVERNOR'S DECISION NOTING THAT THE COMPANY HAD MERELY ASKED THAT THE PANEL DETERMINE WHETHER THE INSTALLATION TIME SCHEDULES WERE FAIR AND COMPETITIVE UNDER THE AGREEMENT WITH THE STATE THE LOTTERY SYSTEM HAS TO BE UP AND RUNNING BY OCTOBER GTECH BASED IN GREENWICH RI WAS THE ONLY COMPANY TO SUBMIT A BID BY THE FEB 18 DEADLINE FOR THE CONTRACT GTECH'S STOCK SOARED 350 YESTERDAY TO 34875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9304010037 930401 ECONOMY CALIFORNIA'S PROSPECTS LOOK LESS GLOOMY STUDY SAYS LOS ANGELES PROMPTED BY GROWING ACTIVITY IN OTHER PARTS OF THE COUNTRY CALIFORNIA'S ECONOMY THIS YEAR IS EXPECTED TO PRODUCE A SLIGHTLY LESS GLOOMY PERFORMANCE THAN PREVIOUSLY PREDICTED DAVID HENSLEY DIRECTOR OF THE UCLA BUSINESS FORECASTING PROJECT SAID IN AN INTERVIEW REVIEWING THE BUSINESS FORECAST PROJECT'S LATEST QUARTERLY OUTLOOK MR HENSLEY CAUTIONED THAT WHILE THIS YEAR MAY BE LESS GLOOMY PREDICTED ECONOMIC PERFORMANCE IN FUTURE YEARS HAS SLIPPED SLIGHTLY IT SEEMS LIKE 1993 BECAME SLIGHTLY LESS NEGATIVE AND 1994 SLIGHTLY LESS VIGOROUS THAN EARLIER FORECAST MR HENSLEY SAID ADDING THAT PROJECTIONS STILL FALL FAR SHORT OF INDICATING A RECOVERY ANYTIME THIS YEAR THE LATEST FORECAST SAYS THAT PERSONAL INCOME IN CALIFORNIA WILL GROW 39 THIS YEAR 50 NEXT YEAR AND 71 IN 1995 IN DECEMBER THE GROUP ESTIMATED PERSONAL INCOME GROWTH AT A SOMEWHAT SMALLER 32 THIS YEAR A SLIGHTLY GREATER 54 NEXT YEAR AND A BARELY CHANGED 72 IN 1995 THESE FIGURES AREN'T ADJUSTED FOR INFLATION AND REPRESENT SOCALLED NOMINAL GAINS THE BUSINESS FORECASTING PROJECT IS ATTACHED TO THE BUSINESS SCHOOL OF THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES 9304010036 930401 WHAT'S NEWS BUSINESS AND FINANCE NEW STOCK AND BOND ISSUES ROSE 18 IN THE FIRST QUARTER FROM A YEAR EARLIER TO A RECORD 2624 MILLION REFLECTING LOW INTEREST RATES THAT LED INVESTORS TO MOVE MONEY OUT OF BANKS AND INTO STOCK AND BOND MUTUAL FUNDS BUT THE VOLUME OF MORTGAGEBACKED BOND ISSUES FELL 6 MERRILL WAS THE NO 1 OVERALL UNDERWRITER THE HOUSE APPROVED A COMPROMISE WITH THE SENATE ON CLINTON'S PLAN TO CUT THE BUDGET DEFICIT WHILE BOOSTING SPENDING ON ECONOMIC INVESTMENTS SENATE APPROVAL IS EXPECTED TODAY CLINTON'S PROPOSED ENERGY TAX WOULDN'T BE PAID BY COAL PRODUCERS BUT INSTEAD WOULD BE COLLECTED FROM UTILITIES WHEN THEY USE COAL UNDER AN EXPECTED REVISION IN THE PROPOSAL FACTORY ORDERS JUMPED 14 IN FEBRUARY THEIR FOURTH INCREASE IN SIX MONTHS THE INDEX OF LEADING INDICATORS MEANWHILE ROSE 05 IN FEBRUARY AFTER NO CHANGE IN JANUARY BLUECHIP STOCKS FELL AMID WEAKERTHANEXPECTED ECONOMIC DATA WHILE BOND PRICES SLIPPED AND THE DOLLAR SANK TO A RECORD LOW AGAINST THE YEN THE DOW JONES INDUSTRIALS SLID 2216 TO 343511 BUT NASDAQ STOCKS ROSE VOLKSWAGEN POSTED A 7729 MILLION FIRSTQUARTER LOSS THE AUTO MAKER EUROPE'S BIGGEST SAID IT IS IN A CRISIS BUT PREDICTED IT WILL BREAK EVEN IN 1993 THE COMPANY SAID IT WILL CHANGE THE WAY IT BUILDS CARS SLASH EMPLOYMENT AND CUT THE PRICES IT PAYS SUPPLIERS MERCEDESBENZ IS EXPECTED TO ANNOUNCE THAT IT WILL BUILD A FACTORY IN THE US FOLLOWING A SIMILAR MOVE BY RIVAL GERMAN AUTO MAKER BMW A US TRADE REPORT CHARGED JAPAN AND OTHER NATIONS WITH ERECTING UNFAIR TRADE BARRIERS BUT TEMPERED THE CRITICISM WITH RELATIVELY GENTLE LANGUAGE SEPARATELY CANADA IMPOSED LEVIES ON ADDITIONAL IMPORTS OF STEEL PRODUCTS BOEING'S DEBT WAS DOWNGRADED BY MOODY'S WHICH CITED CONTINUING WEAKNESS IN THE AIRLINE INDUSTRY AN AFLCIO PENSION PROGRAM AND THE GOVERNMENT ARE EXPECTED TO ANNOUNCE A PLAN TO INVEST 1 BILLION TO BUILD AND REHABILITATE URBAN HOUSING CITICORP SOLD THREE OFFICE BUILDINGS SIGNALING THAT IT ISN'T FOLLOWING THE STRATEGY OF OTHER BIG BANKS THAT ARE SELLING PROBLEM REAL ESTATE IN BULK THE FED PROPOSED CAPITAL STANDARDS FOR BANKS FACING UNUSUAL RISK FROM INTEREST RATE SWINGS LOAN CONCENTRATIONS AND NEW ACTIVITIES BRISTOLMYERS'S CAPOTEN DRUG FOR HIGH BLOOD PRESSURE MAKES PATIENTS FEEL BETTER THAN DOES MERCK'S RIVAL DRUG VASOTEC RESEARCHERS FOUND MONSANTO WON AN FDA ADVISORY COMMITTEE'S DETERMINATION THAT THE COMPANY'S GROWTH HORMONE FOR COWS WON'T HURT PEOPLE WHO DRINK MILK TOKYO STOCK PRICES SLUMPED ALMOST 2 WEDNESDAY ON PROFITTAKING THE NIKKEI INDEX DECLINED 37171 POINTS TO CLOSE THE FISCAL YEAR AT 1859145 DOWN 39 FROM ITS CLOSE A YEAR EARLIER IN LONDON SHARE PRICES POSTED GAINS BONDS LEHMAN BROTHERS TREASURY INDEX 500559 OFF 565 COMMODITIES OIL 2044 A BARREL UP 16 CENTS DOW JONES FUTURES INDEX 12739 OFF 015 SPOT INDEX 12558 UP 091 DOLLAR 11475 YEN OFF 181 16060 MARKS OFF 00113 9304010034 930401 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD D HOLMAN TO HEAD OFF PROBLEMS AS THE AILING EASTERN GERMAN CHEMICAL INDUSTRY MOVES TO LAY OFF 17000 WORKERS THE GOVERNMENT'S PRIVATIZATION AGENCY AND THE IG CHEMIE UNION STRUCK A DEAL TO GUARANTEE REPLACEMENT JOBS FOR AS LONG AS THREE YEARS THE FIRST SAFETY NET FOR AN ENTIRE INDUSTRY MOVES THE TREUHANDANSTALT BEYOND ITS MANDATE TO SELL OFF EASTERN GERMAN ENTERPRISES AND INVOLVES IT IN LABOR POLICY THOUGH IT MAY COST TAXPAYERS ONE BILLION MARKS 6183 MILLION THE DEAL PROVIDES A MODEL FOR UNIONEMPLOYER COOPERATION TO RIDE OUT THE TRANSITION TO A MARKET ECONOMY IN THE REGION WHERE THE MINING INDUSTRY FACES COLLAPSE AND METAL WORKERS PLAN WARNING STRIKES OVER PAY STARTING TODAY SLASHING WORKER RANKS MAY HELP PRIVATIZE FIRMS IN THE HUGE CHEMICAL INDUSTRY ONCE A PILLAR OF THE FORMER EAST GERMAN ECONOMY BUT NOW UNATTRACTIVE WITH BLOATED STRUCTURES AND EMPLOYMENT ROLLS AND SEVERE ENVIRONMENTAL LIABILITIES REPLACEMENT JOBS AT 90 OF CHEMICAL PAY WILL BE IN ENVIRONMENTAL CLEANUPS CHILE LIFTED MOST RESTRICTIONS ON FOREIGN INVESTORS' TRANSFER ABROAD OF PROFITS AND CAPITAL AND CUT TAXES ON THEIR EARNINGS TO 42 FROM 495 THE WAITING PERIOD FOR REPATRIATING FUNDS FROM INVESTMENTS WAS REDUCED TO ONE YEAR FROM FOUR MOVING EARNINGS OUT OF THE COUNTRY WHICH HAD REQUIRED WAITS AS LONG AS TWO YEARS NOW MAY BE DONE ANYTIME FOREIGN INVESTMENT A KEY PART OF CHILE'S ECONOMIC POLICIES LAST YEAR ROSE 30 TO 16 BILLION FROM 1991 INDIA IS OPENING 43 OIL FIELDS TO EXPLORATION BY DOMESTIC AND FOREIGN PRIVATE COMPANIES THE GOVERNMENT WHICH IS DEREGULATING INDUSTRY LAST YEAR ALLOWED OIL COMPANIES TO MARKET THEIR PRODUCTS IN INDIA ENDING THREE DECADES OF STATE CONTROL OF THE PETROLEUM SECTOR THE NEW MOVE TO LET PRIVATE COMPANIES DRILL FOR OIL IS EXPECTED TO INCREASE OUTPUT BY 16 MILLION TONS OF CRUDE NEXT YEAR PRODUCTION HAS BEEN DECLINING AND TOTALED 268 MILLION TONS LAST YEAR REQUIRING INDIA TO IMPORT TO MEET STEADILY RISING DEMAND MUSLIM VIOLENCE IN EGYPT LED THE NATIONAL AIRLINE TO POSTPONE BUYING THREE AIRBUS INDUSTRIE JETLINERS EGYPTAIR WITH A 35PLANE FLEET PLANNED TO ACQUIRE A340 MODELS PRICED AT 120 MILLION EACH MUSLIMS SEEKING TO OVERTHROW THE SECULAR GOVERNMENT BEGAN LAST YEAR TARGETING TOURISTS THE COUNTRY'S MAIN SOURCE OF FOREIGN CURRENCY EGYPTAIR WHICH CARRIED 3 MILLION PASSENGERS LAST YEAR EXPECTS A DROP THIS YEAR OF AT LEAST 40 TO 18 MILLION EGYPT'S TOURISM HAS PLUNGED MORE THAN 50 AS CLASHES AND BOMB EXPLOSIONS HAVE KILLED ABOUT 150 PEOPLE IN 15 MONTHS BELGIAN FINANCIAL INSTITUTIONS CREATED A SYSTEM TO EASE CROSSBORDER PAYMENTS FOR CONSUMERS IN EUROPE THE BELGIAN EUROPEAN PAYMENTS SYSTEM TO START OPERATING IN SEPTEMBER WAS FORMED IN RESPONSE TO EUROPEAN COMMUNITY PLEAS TO STREAMLINE AND CUT COSTS ON MONEY TRANSFERS DESPITE THE EC'S SINGLE MARKET PROGRAM FEES ON SMALL PAYMENTS ACROSS EC BORDERS ARE INORDINATELY LARGE THE BELGIAN SYSTEM WHICH WILL SPECIALIZE IN PAYMENTS OF LESS THAN 2500 EUROPEAN CURRENCY UNITS 2995 INITIALLY WILL SERVE BELGIUM THE NETHERLANDS BRITAIN AND GERMANY JAPANESE EAT TOO MUCH SALT AND FAT IN AN UNBALANCED DIET OF PROCESSED FOOD AND TAKEOUT MEALS CONTINUING A FIVEYEAROLD TREND THE GOVERNMENT'S ANNUAL SURVEY OF EATING HABITS FOUND DESPITE POTENTIAL BLOODPRESSURE AND ARTERIAL PROBLEMS DAILY SALT INTAKE ROSE 04 GRAM TO 129 GRAMS EXCEEDING THE RECOMMENDED 10 GRAMS FOR ADULTS FAT INTAKE ROSE TO 254 FROM 253 OF OVERALL NUTRITION THE RECOMMENDED MAXIMUM IS 25 MOROCCO HAS PUT 114 COMPANIES UP FOR SALE IN A PRIVATIZATION PROGRAM THAT COULD RAISE 3 BILLION THIS YEAR FOR THE NORTH AFRICAN COUNTRY WHICH HAS LIBERALIZED ITS ECONOMY IN THE PAST DECADE SELLOFF CANDIDATES RANGE FROM 15 HOTELS TO PETROLEUM DISTRIBUTORS AND CHEMICAL COMPANIES CONTRACTORS BREWERS AND TRANSPORT FIRMS THE PRIVATIZATION PROGRAM APPROVED IN 1989 BEGAN LAST YEAR WHEN FOUR COMPANIES INCLUDING TWO HOTELS WERE SOLD FURTHER SELLOFFS MAY BE CONDUCTED THROUGH PUBLIC TENDERS NEGOTIATIONS WITH THE STATE OR ON CASABLANCA'S BUDDING STOCK MARKET THE SELLOFFS ALSO ARE INTENDED TO TIGHTEN TIES WITH THE EUROPEAN COMMUNITY THE MAJOR TRADING PARTNER WITH MOROCCO WHICH HAS HAD AVERAGE ANNUAL GROWTH OF 5 IN GROSS DOMESTIC PRODUCT SINCE 1985 THE COUNTRY OF 25 MILLION PEOPLE IS EAGER TO BOOST FOREIGN INVESTMENT WHICH TOTALED 550 MILLION LAST YEAR ITS CURRENCY BECAME CONVERTIBLE LAST JANUARY ECUADOR DECLARED A STATE OF EMERGENCY IN SOUTHERN PROVINCES AFTER AT LEAST 10 PEOPLE WERE KILLED 100 DISAPPEARED AND 1000 WERE LEFT HOMELESS IN SEVERE FLOODS AND MUDSLIDES THIS WEEK RISING WATER THREATENS THE NATION'S PRINCIPAL HYDROPOWER DAM RECENT HEAVY RAINS HAVE DESTROYED CROPS AND SHRIMP FARMS ISOLATED SEVERAL TOWNS AND LEFT 12000 PEOPLE HOMELESS AFTER TURKEY ORDERED THE CLOSURE OF ABOUT 500 RADIO STATIONS FOR OPERATING ILLEGALLY WITHOUT LICENSES AUTHORITIES RAIDED A DOZEN STATIONS IN ANKARA THE POLITICAL OPPOSITION CONDEMNED THE ACTION SAYING DEMOCRACY NEEDS MANY VOICES 9304010033 930401 REVIEW & OUTLOOK EDITORIAL ANOTHER CONGRESS ANOTHER SHOW WE SEEM TO BE LEARNING ALMOST AS MUCH THESE DAYS ABOUT RUSSIA'S CONGRESS AS WE KNOW ABOUT AMERICA'S HOW DISCONCERTING BUT LET'S SQUARE THE CIRCLE THERE'S THE NATIONAL PEOPLE'S CONGRESS OF CHINA WHICH RECENTLY GATHERED TO CLAIM CREDIT FOR THE COUNTRY'S GOOD ECONOMIC PERFORMANCE DENG XIAOPING'S HANDPICKED SUCCESSORS JIANG ZEMIN AND LI PENG GAVE THE OFFICIAL SEAL OF APPROVAL TO THE PROECONOMIC REFORM PROCOMMUNIST PARTY POLICY WITH THE EFFERVESCENT MR LI CALLING FOR 9 GROWTH WAXED ONE ACOLYTE THE DENG WAY RAISES OUR ECONOMY ON A CHILD'S DIET COMBINING THE FRUITS OF FREE ENTERPRISE WITH THE MEAT OF THE SOCIALIST CREED THE NUMBERS ARE INDEED DAZZLING IN 1976 80 OF CHINA'S PRODUCTION WAS DIRECTLY OWNED BY THE STATE NOW IT IS ABOUT HALF THE ECONOMY IS GROWING AT A SIZZLING 12 EASILY THE FASTEST IN THE WORLD FOREIGNEXCHANGE RESERVES ARE BRIMMING AND THE SYSTEM IS DELIVERING THE GOODS TO THE COUNTRY'S EMERGING MIDDLE CLASS IN 1980 THE MASSES BOUGHT 600 WASHING MACHINES A DAY TODAY IT'S ABOUT 40000 THIRTEEN YEARS AGO SOME 10000 TELEVISIONS WERE SOLD DAILY TODAY 70000 THESE ARE FACTS NO SKEPTIC CAN IGNORE BUT FOR ALL ITS PROMISE CHINA'S ECONOMIC BOOM IS ALSO PRODUCING A COLOSSAL MESS IN MANY SECTORS THE ECONOMY IS A NIGHTMARE OF IRRATIONALITY INCONSISTENCY AND INEFFICIENCY PRICES FOR GOODS CAN VARY WIDELY DEPENDING ON WHETHER THEY'RE SET BY THE MARKET OR THE STATE FISCAL POLICY IS A TRAVESTY THE CENTRAL GOVERNMENT HAS LOST CONTROL NOT ONLY OF TAX COLLECTION BUT ALSO OF PROFIT REMITTANCES FROM THE BUSINESSES IT OWNS OF COURSE MANY OF THESE GROSSLY SUBSIDIZED ENTERPRISES DON'T HAVE PROFITS TO REMIT THE FINANCIAL SYSTEM IS INCAPABLE OF TRANSMITTING CHINA'S HUGE POOL OF SAVINGS ESTIMATED AT 40 OF GNP A YEAR TO PLACES THE CASH CAN USEFULLY BE INVESTED CRIME FROM FRAUD TO MUGGING IS GROWING FAST WHILE BUSINESS ITSELF OPERATES IN A LEGAL MURK THE RESULT IS ANARCHY IN THE MARKETPLACE AND RISING SOCIAL TENSIONS THERE HAS NEVER BEEN A COUNTRY THAT HAS SUSTAINED DEVELOPMENT WITHOUT A SEMBLANCE OF THE RULE OF LAW EVEN THE FORMER AUTHORITARIAN REGIMES IN TAIWAN AND SOUTH KOREA PROTECTED PRIVATE PROPERTY AND ENFORCED CONTRACTS IN CHINA THE HALTING PROGRESS IN THE MID1980S TOWARD THE RULE OF LAW HAS STOPPED INSTEAD THE NATIONAL PEOPLE'S CONGRESS PRESIDED OVER THE REINSERTION OF THE CHINESE COMMUNIST PARTY AT THE HEART OF THE GOVERNMENT CHINA HAD A CHOICE BETWEEN PROMOTING THE RULE OF LAW OR PROMOTING THE PARTY'S POWER THE PARTY WON THAT VICTORY MUCH MORE THAN INADEQUATE INFRASTRUCTURE AND ENERGY SHORTAGES IS WHAT IMPERILS CHINA'S ECONOMIC FUTURE WE ADMIT IT'S HARD NOT TO GET EXCITED ABOUT CHINA SHOPS FROM HAINAN TO HARBIN ARE CRAMMED WITH GOODS AND CUSTOMERS THE STREETS ARE LINED WITH BILLBOARDS ADVERTISING THE GOOD LIFE TO AN AUDIENCE HELD CAPTIVE BY TRAFFIC JAMS OF FOREIGNMADE CARS FOREIGN INVESTORS FLOAT MORE THAN 1 BILLION IN CHINA FUNDS BUT THIS MIRACLE STILL WALKS ON RUBBERY BABY LEGS TO GROW UP CHINA NEEDS TO REJECT THE OXYMORONIC CONCEPT OF THE SOCIALIST MARKET ECONOMY THAT MEANS BREAKING THE BALEFUL INFLUENCE OF THE PHENOMENALLY INEFFICIENT STATE SECTOR FREEING PRICES AND SETTING AT LEAST A FEW ECONOMIC RULES FOR EVERYONE TO FOLLOW UNTIL THESE THINGS HAPPEN EXPECT THE CHINESE ECONOMY TO STOP AND GO LIKE AN OVERSIZED INFANT FOREVER TEETERING AND UNCERTAIN 9304010032 930401 ATTORNEY LEADING PROBE OF DEMOCRATS PLANS TO LEAVE OFFICE WASHINGTON THE REPUBLICAN PROSECUTOR INVESTIGATING THREE DEMOCRATIC CONGRESSMEN SAID HE PLANS TO LEAVE OFFICE TOMORROW IN KEEPING WITH THE ATTORNEY GENERAL'S CALL FOR HIS RESIGNATION THE JUSTICE DEPARTMENT HOWEVER SAID THAT JAY STEPHENS US ATTORNEY FOR THE DISTRICT OF COLUMBIA DOESN'T HAVE TO QUIT IMMEDIATELY AND THAT HIS SUCCESSOR HASN'T BEEN CHOSEN MR STEPHENS SAID DEPARTMENT OFFICIALS TOLD HIM THAT HIS RESIGNATION AND THOSE REQUESTED OF OTHER US ATTORNEYS WOULD BE EFFECTIVE TOMORROW BUT WEBSTER HUBBELL AN ASSISTANT TO ATTORNEY GENERAL JANET RENO DENIED ANY US ATTORNEY WAS GIVEN A DEADLINE HE SAID HOWEVER THAT MOST OF THE US ATTORNEYS WHOSE RESIGNATIONS WERE REQUESTED WOULD BE REPLACED BY THE END OF APRIL REGARDLESS THE INVESTIGATION INTO ALLEGATIONS CONCERNING CORRUPTION IN THE HOUSE POST OFFICE OBSTRUCTION OF JUSTICE CHARGES AND FINANCIAL FRAUD WILL CONTINUE THE DATE OF MR STEPHENS'S DEPARTURE HAS DRAWN SPECIAL ATTENTION BECAUSE HE HAS SAID A DECISION IS NEAR IN THE CASE INVOLVING REP DAN ROSTENKOWSKI D ILL WHO IS CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE AND A CRUCIAL PLAYER IN MOVING PRESIDENT CLINTON'S ECONOMIC PACKAGE THROUGH CONGRESS IN ADDITION TO MR ROSTENKOWSKI REPS JOSEPH KOLTER AND AUSTIN MURPHY BOTH PENNSYLVANIA DEMOCRATS ARE BEING INVESTIGATED YESTERDAY GERALD WEAVER A FORMER ADMINISTRATIVE ASSISTANT TO REP KOLTER PLEADED GUILTY TO OBSTRUCTING JUSTICE IN THE POST OFFICE PROBE AND NARCOTICS CHARGES 9304010031 930401 WHO'S NEWS AMERICAN ECOLOGY CORP AMERICAN ECOLOGY CORP HOUSTON THE COMPANY SAID R LEE ARMBRUSTER RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE MAY 6 THE CHEMICAL WASTEDISPOSAL CONCERN SAID THAT HARRY J PHILLIPS JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ASSUME ARMBRUSTER'S RESPONSIBILITIES BUT THE COMPANY DIDN'T SPECIFY WHETHER MR PHILLIPS WILL BE NAMED TO THE ADDITIONAL POSITIONS OF PRESIDENT AND CHIEF OPERATING OFFICER 9304010030 930401 LEISURE & ARTS BOOKSHELF ANOTHER BOSNIA TOMORROW BY ZALMAY KHALILZAD WHAT CAUSED THE DISINTEGRATION OF THE SOVIET EMPIRE AND WHAT WILL REPLACE THE DANGEROUS COLD WAR COMPETITION AS THE DOMINANT FEATURE OF WORLD POLITICS THESE ARE TWO OF THE MOST IMPORTANT QUESTIONS OF THE DECADE SENATOR DANIEL PATRICK MOYNIHAN PROVIDES AN INTERESTING AND PROVOCATIVE PERSPECTIVE FOR DEBATING THESE ISSUES IN PANDAEMONIUM ETHNICITY AND INTERNATIONAL POLITICS OXFORD UNIVERSITY PRESS 221 PAGES 1995 THE SENIOR SENATOR FROM NEW YORK SUGGESTS THAT WE LOOK TO ETHNIC NATIONALISM FOR THE ANSWER HIS BOOK WHICH EVOLVED FROM A 1991 LECTURE HE GAVE AT OXFORD UNIVERSITY IS A COMMENTARY ON THREE ASPECTS OF ETHNIC POLITICS SOVIET DISINTEGRATION THE DANGERS POSED BY SELFDETERMINATION AND ETHNICITY AS TOOLS FOR UNDERSTANDING INTERNATIONAL POLITICS THAT ETHNIC NATIONALISM CAN BE A POWERFUL TOOL FOR ANALYZING AND PREDICTING EVENTS IN MULTIETHNIC POLITIES IS NO DOUBT TRUE SENATOR MOYNIHAN HAS ARGUED FROM THIS CORNER BEFORE AND HE HAPPILY REMINDS US THAT HE RAISED THE QUESTION OF A POSSIBLE BLOW UP OF THE SOVIET UNION AS EARLY AS 1979 IN A LETTER TO NEWSWEEK FEELING VINDICATED HE CRITICIZES THE US FOCUS ON THE SOVIET THREAT IN THE 1980S BUT ETHNIC POLITICS ALONE WOULD NOT HAVE BROUGHT ABOUT THE SOVIET COLLAPSE THE SOVIET UNION DISINTEGRATED BECAUSE IT LOST THE COLD WAR DUE TO INCREASED AMERICAN PRESSURE DURING THE REAGAN ERA ITS OWN ECONOMIC FAILURE AND SOVIET OVERREACH IN THE THIRD WORLD ESPECIALLY AFGHANISTAN ETHNIC DIVISION WAS ONLY ONE FACTOR IN THE CASE OF FORMER YUGOSLAVIA THE STORY IS A DIFFERENT ONE AND FITS MR MOYNIHAN'S THEORY BETTER SERBIAN EXTREMISM WITH ITS BARBARIC POLICIES OF ETHNIC CLEANSING MASS RAPE AND STARVATION IS DIRECTLY RESPONSIBLE FOR THE TRAGEDY THERE UNFORTUNATELY WITH THE END OF SOVIET COMMUNISM ETHNIC EXTREMISM IS EMERGING AS ONE OF THE MAIN RIVALS TO DEMOCRATIC PLURALISM ALL OVER EASTERN EUROPE UKRAINE AND RUSSIA THE TAKEOVER OF RUSSIA OR UKRAINE BY ETHNIC EXTREMISTS AND THE BREAKDOWN OF CIVIL ORDER WOULD MEAN MORE WARS AND NEW ATTEMPTS AT REGIONAL HEGEMONY THE RECENT PAST OFFERS NO GUIDANCE FOR AVOIDING SUCH TROUBLE FEW STATES ESTABLISHED ON THE BASIS OF THE WILSONIAN PRINCIPLE OF SELFDETERMINATION HAVE ACHIEVED SIGNIFICANT DEGREES OF LAW OR ORDER IN FORMER YUGOSLAVIA SELFDETERMINATION HAS CREATED CHAOS IN AFRICA THE POSTCOLONIAL STATES ARE DECAYING AND DISORDER IS SPREADING MR MOYNIHAN DOESN'T SAY WHY HE THINKS SOME THIRD WORLD STATES MAKE IT AND OTHERS DO NOT BUT AN UNDEVELOPED POLITICAL CULTURE MUST BE THE SINGLE MOST IMPORTANT REASON FOR ILLEGITIMATE GOVERNMENTS AND THE RISE OF ANARCHY THE THIRD WORLD'S CURRENT PROBLEMS MAKE MR MOYNIHAN NOSTALGIC FOR THE OLD EMPIRE HE IMPLIES THAT LIFE WAS BETTER FOR THE RESIDENTS OF MANY FORMER COLONIES BEFORE INDEPENDENCE CLEARLY SOME OF THE NEW STATES WERE NOT READY FOR SELFGOVERNMENT BUT IT IS EQUALLY TRUE THAT OLD EMPIRES WERE NO LONGER SUSTAINABLE MR MOYNIHAN PREDICTS THAT MORE STATES WILL FALL APART ALONG ETHNIC LINES RUSSIA AND INDIA ARE POSSIBLE CANDIDATES FOR FRAGMENTATION BUT MIGHT THE TREND TOWARD FRAGMENTATION BE REVERSED HOW DOES IT INTERRELATE WITH THE SIMULTANEOUS TREND TOWARD GLOBALIZATION IN FINANCE AND INFORMATION MR MOYNIHAN DOES NOT DEAL WITH THESE QUESTIONS HE SIMPLY BELIEVES THAT ETHNIC CONFLICTS WILL INCREASE EVERYWHERE THIS MIGHT BE TOO PESSIMISTIC AND DEPENDS ON MANY VARIABLES ESPECIALLY ECONOMIC CONDITIONS IN THE DEVELOPING WORLD AND THE WILL OF THE US AND OTHER LEADING DEMOCRACIES IN EUROPE AND EAST ASIA TO PREVENT THE SPREAD OF DISORDER TO CRITICAL REGIONS SURPRISINGLY GIVEN HIS PAST AND PRESENT POLICY ROLES MR MOYNIHAN OFFERS VERY FEW SPECIFIC GUIDELINES FOR US POLICY ON HOW TO MAKE THE WORLD SAFE FOR AND FROM ETHNICITY HIS RECOMMENDATIONS ARE A RENEWED COMMITMENT TO INTERNATIONAL LAW AND A REALISTIC USE OF THE UN THESE ARE PERFECTLY SENSIBLE POLICIES BUT THEY ARE NOT ENOUGH FOR EASTERN EUROPE UKRAINE AND RUSSIA THE US IN COOPERATION WITH THE OTHER FREE MARKET DEMOCRACIES MUST DEVELOP A COMPREHENSIVE STRATEGY AIMED AT CONSOLIDATION OF DEMOCRACY ESTABLISHMENT OF A FREE MARKET ECONOMY AND A NEW SECURITY FRAMEWORK THROUGH THE EXPANSION OF NATO EASTWARDS PERHAPS WE COULD LEARN FROM THE PAST JUST THIS ONCE AFTER WORLD WAR II WE STABILIZED TWO UNSTABLE REGIONS WESTERN EUROPE AND EAST ASIA AND NOW THESE TWO FORM A STRONG DEMOCRATIC ZONE OF PEACE WITH NORTH AMERICA UNLESS THIS ZONE IS EXTENDED TO EUROPE'S NEW DEMOCRACIES INCREASED DISORDER THERE MIGHT WELL JEOPARDIZE STABILITY IN WESTERN EUROPE WHAT DO WE DO WHEN ETHNIC EXTREMISTS USE MASSIVE VIOLENCE AGAINST OTHER ETHNIC GROUPS HOW FAR SHOULD WE GO IN PUNISHING THE AGGRESSOR AND HELPING THE VICTIM IN ORDER TO ACHIEVE A DESIRABLE OUTCOME MR MOYNIHAN DOES NOT SAY HE WOULD PROBABLY AGREE THAT WE MUST BE VERY SELECTIVE IN GETTING INVOLVED DIRECTLY BUT SURELY WE WILL HAVE TO DEVELOP CRITERIA FOR MAKING CHOICES AND THERE IS A RANGE OF THINGS THE US AND ITS ALLIES CAN DO WITHOUT SENDING GROUND UNITS INCLUDING ARMING THE VICTIM WHICH WORKED WELL IN AFGHANISTAN AND ON OCCASION SUPPLEMENTING THIS SUPPORT WITH AIR AND MISSILE ATTACKS AGAINST THE AGGRESSOR THE STAKES IN BOSNIA WARRANTED THE EXERCISE OF THESE OPTIONS DIPLOMACY AND ECONOMIC SANCTIONS HAVE NOT WORKED THERE WHICH SHOWS THAT WE HAVE NOT YET DEVELOPED AN APPROPRIATE APPROACH FOR SUCH CONFLICTS THE CLINTON ADMINISTRATION MUST DO SO MR KHALILZAD IS DIRECTOR OF STRATEGY AT THE RAND CORPORATION 9304010029 930401 WHO'S NEWS ESPRIT DE CORP CHIEF QUITS AS FIRM IS HIT BY SHAREHOLDER SUITS SAN FRANCISCO ESPRIT DE CORP SAID ITS TOP EXECUTIVE HAS RESIGNED A YEAR AFTER TAKING OVER THE CLOSELY HELD APPAREL COMPANY WHICH IS BEING SUED BY A MINORITY STOCKHOLDER FOR ALLEGED FINANCIAL MANIPULATION AND DELIBERATE MISMANAGEMENT TWO SUITS FILED IN FEDERAL COURT HERE CHARGE THAT COMPANY FOUNDER SUSIE TOMPKINS DIRECTOR MICHAEL YING AND ISAAC STEIN FORMER CHIEF EXECUTIVE OFFICER AND PRESIDENT WRONGFULLY DIVERTED MORE THAN 250 MILLION IN ASSETS FROM THE COMPANY TO ESPRIT FAR EAST LTD A BRITISH VIRGIN ISLANDCHARTERED COMPANY BASED IN HONG KONG WHICH THE COMPLAINT SAYS IS OWNED MOSTLY BY MS TOMPKINS AND MR YING BRUCE R KATZ WHO OWNS 25 OF ESPRIT DE CORP IS SEEKING 36 MILLION FOR THE STAKE HE BOUGHT FROM MS TOMPKINS AND FORMER HUSBAND DOUG TOMPKINS IN 1990 THE SECOND SUIT FILED BY MR KATZ ON BEHALF ESPRIT SEEKS 300 MILLION IN DAMAGES MS TOMPKINS WHO OWNS 42 OF THE COMPANY IN A STATEMENT CALLED THE ALLEGATIONS RECKLESS AND WITHOUT MERIT SHE SAID THE SUITS FOLLOWED A BREAKDOWN IN NEGOTIATIONS FOR THE PURCHASE OF MR KATZ'S STAKE BY THE OTHER SHAREHOLDERS THE SUITS COME ON THE HEELS OF THE RESIGNATION OF FRITZ AMMANN 49 AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER DAVID FOLKMAN 58 A BOARD MEMBER AND PRINCIPAL AT REGENT PACIFIC MANAGEMENT CORP IN CUPERTINO CALIF HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER NO CHAIRMAN HAS BEEN NAMED 9304010027 930401 MERCEDESBENZ IS SAID TO BE SET TO BUILD US PLANT BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL GERMAN LUXURY CAR MAKER MERCEDESBENZ AG IN A MAJOR STRATEGIC SHIFT IS EXPECTED TO ANNOUNCE NEXT WEEK THAT IT WILL BUILD A NEW ASSEMBLY PLANT IN THE US WITH ITS DECISION TO BUILD A NEW PLANT IN THE US AS OPPOSED TO GERMANY OR MEXICO MERCEDES IS FOLLOWING RIVAL BAYERISCHE MOTOREN WERKE AG IN GIVING A HIGHBROW STAMP OF APPROVAL TO AMERICAN MANUFACTURING COMPETITIVENESS MERCEDES ALSO IS MOVING TO DILUTE THE IMPACT OF GERMANY'S HIGH MANUFACTURING COSTS ON THE PRICES AND THUS THE SALES OF ITS CARS BUT THE RISK SIMILAR TO THE ONE BEING TAKEN BY BMW IS THAT BUILDING CARS IN THE US WILL WEAKEN THE COMPANY'S GERMANENGINEERING IMAGE IN THE MARKET SENIOR COMPANY OFFICIALS ARE SCHEDULED TO HOLD A NEWS CONFERENCE MONDAY IN NEW YORK WHERE PEOPLE FAMILIAR WITH THE COMPANY'S PLANS SAY MERCEDES WILL UNVEIL ITS PLAN DAIMLERBENZ IS LOOKING TO BROADEN ITS TIES TO THE US IN OTHER WAYS EARLIER THIS WEEK DAIMLERBENZ REACHED AN AGREEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO BECOME THE FIRST GERMAN COMPANY LISTED ON THE NEW YORK STOCK EXCHANGE IN ADDITION TO THE SYMBOLIC SIGNIFICANCE DAIMLERBENZ PLANS TO USE ACCESS TO THE US STOCK MARKET AS A SPRINGBOARD FOR A GLOBAL SECURITIES OFFERING OF 2 BILLION LATER THIS YEAR A MERCEDESBENZ SPOKESWOMAN WOULDN'T COMMENT ON WHAT THE COMPANY WILL ANNOUNCE BUT SPECULATION HAS PERSISTED THAT THE AUTO MAKER WILL BUILD A PLANT IN THE US POSSIBLY NORTH CAROLINA OR SOUTH CAROLINA TO MANUFACTURE A LUXURY SPORTUTILITY VEHICLE MERCEDES CURRENTLY DOESN'T MAKE SPORTUTILITY VEHICLES WHICH HAVE SOARED IN POPULARITY IN THE US MARKET THE FORD EXPLORER AND CHRYSLER CORP'S JEEP GRAND CHEROKEE HAVE BEEN MAJOR SUCCESSES IN RECENT YEARS ALTHOUGH MERCEDES IS LIKELY TO SEEK A MORE UPSCALE MARKET NICHE IN NORTH CAROLINA THE AUTO MAKER COULD EXPAND AN EXISTING FREIGHTLINER HEAVYTRUCK PLANT FREIGHTLINER AND MERCEDES ARE SUBSIDIARIES OF DAIMLERBENZ AG MERCEDES IS UNDER INTENSIFYING PRESSURE TO BUILD CARS IN THE US NOW THAT RIVAL BMW HAS SAID IT WILL OPEN A PLANT NEAR SPARTANBURG SC IN 1995 LAST YEAR BMW OUTSOLD AND OUTPRODUCED MERCEDES FOR THE FIRST TIME EVER WHILE BMW REMAINED FOCUSED ON AUTOMOBILES DAIMLERBENZ DIVERSIFIED IN THE 1980S AND THUS IN THE VIEW OF MANY ANALYSTS DIDN'T PAY CLOSE ENOUGH ATTENTION TO CHANGES IN THE CAR MARKET A MERCEDESBENZ ASSEMBLY PLANT IN THE US WOULD GIVE THE AUTO MAKER A HEDGE AGAINST CURRENCY FLUCTUATIONS A WEAK DOLLAR COMPARED WITH THE GERMAN MARK HAS HELPED PUSH UP PRICES OF MANY MERCEDES MODELS AT A TIME WHEN CONSUMERS ARE DEMANDING MORE FOR THEIR MONEY ADDITIONALLY A US PLANT WOULD SHIELD THE AUTO MAKER FROM THE HIGH COST OF LABOR AND PARTS IN GERMANY MERCEDES COULD USE THE US PLANT AS A BASE FOR EXPORTING TO OTHER COUNTRIES SAID SCOTT MERLIS AN AUTO ANALYST WITH MORGAN STANLEY & CO ANALYSTS CAUTIOUSLY NOTE THE RISKINESS OF THE VENTURE MERCEDES IS IN THE MIDST OF A CORPORATE REORGANIZATION THAT HAS DIVERTED MANAGEMENT'S ATTENTION THE AUTO MAKER WILL HAVE TO FOCUS MUCH TIME AND MONEY ON ITS US VENTURE IF THE PLANT IS TO BE SUCCESSFUL THE LAST EUROPEAN AUTO MAKER TO HAVE A CAR ASSEMBLY PLANT IN THE US VOLKSWAGEN AG ABANDONED ITS FACILITY FIVE YEARS AGO BECAUSE OF SLOW SALES OPERATING A PLANT IN THE US WILL BE ONE OF THE MAJOR CHALLENGES OF THE COMPANY MR MERLIS SAID SEPARATELY MERCEDESBENZ PULLED OUT OF ITS PLANNED VENTURES WITH TWO LEADING TRUCK PRODUCERS IN THE CZECH REPUBLIC IN ANOTHER SIGN OF THE DECELERATING GERMAN AND EUROPEAN NEW TRUCK MARKETS THE COMPANY CHOSE TO BUILD THE NEW SIXTON TRUCKS INSTEAD AT ITS EXISTING TRUCK PLANT IN THE GERMAN CITY OF WOERTH SAID HELMUT WERNER THE COMPANY'S CHAIRMANDESIGNATE 9304010026 930401 INTERNATIONAL SIGNS POINT BOTH WAYS FOR JAPAN ECONOMY OPTIMISTS CITE RECENT DATA BUT PESSIMISTS ABOUND BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHICH WAY IS THE JAPANESE ECONOMY HEADED UP OR DOWN IT'S A QUESTION VEXING ECONOMISTS IN TOKYO AFTER MONTHS AND MONTHS OF BAD NEWS A FEW SIGNS OF HOPE ARE SHOWING UP ON THE RECESSIONPARCHED LANDSCAPE OF JAPAN'S ECONOMY THE INDICATORS THOUGH TENUOUS HAVE CHEERED SOME ANALYSTS WHO SUGGEST THE NATION'S BUSINESS SLUMP ITS MOST PRECIPITOUS IN TWO DECADES MAY HAVE FINALLY HIT BOTTOM THE WORST PERIOD IS BEHIND US SAYS SUSUMU KATO CHIEF ECONOMIST AT CS FIRST BOSTON JAPAN LTD OR IS IT NOT YET SAYS TOSHIO ITO CHIEF ECONOMIST AT SUMITOMO BANK LTD WE WON'T KNOW UNTIL AFTER APRIL IT'S PREMATURE TO BE TALKING ABOUT A RECOVERY CONTENDS GEOFFREY BARKER AN ECONOMIST AT BARING SECURITIES JAPAN LTD WE'RE IN THE BUMPINGALONGTHEBOTTOM' PHASE AND THERE'S STILL PLENTY OF SCOPE FOR DISAPPOINTMENT THE OPTIMISTS CONCEDE THAT EVEN IF A RECOVERY IS IN SIGHT CORPORATE JAPAN'S PAIN WON'T EASE IN THE NEAR TERM THE NEGATIVE MOMENTUM IS JUST TOO STRONG PROFITS FOR MANY COMPANIES ARE EXPECTED TO DECLINE AGAIN FOR THE FOURTH STRAIGHT YEAR IN THE FISCAL YEAR BEGINNING TODAY NEW CORPORATE BANKRUPTCIES ARE EXPECTED TO REMAIN AT NEARRECORD LEVELS FOR MANY MORE MONTHS THE ELECTRONICS INDUSTRY REMAINS FLAT ON ITS BACK AND THE BANKING INDUSTRY WILL BE WRESTLING WITH ITS MAMMOTH BADLOAN PROBLEM FOR YEARS TO COME THE FINANCIAL NEWS OUT OF TOKYO IS STILL DOMINATED BY COMPANIES DROPPING PRODUCT LINES SHAVING EMPLOYMENT ANNOUNCING RESTRUCTURINGS AND REVISING THEIR EARNINGS PROJECTIONS DOWNWARD AND THOUGH SOME ECONOMISTS HAVE BEGUN TO DEBATE THE TIMING OF JAPAN'S REBOUND THERE'S LESS DISPUTE ABOUT ITS INTENSITY THE CONSENSUS REMAINS THAT A RECOVERY WILL COME IN ON LITTLE CAT'S FEET AND USHER IN A LONG PERIOD OF SLOW GROWTH THE GOVERNMENT SAYS THE ECONOMY WILL GROW 33 IN THE FISCAL YEAR ENDING MARCH 31 1994 BUT MOST PRIVATE ECONOMISTS' FORECASTS ARE MUCH LOWER STILL SOME ECONOMISTS ARE FINDING ENCOURAGING SIGNS IN THE ECONOMY CHIEF AMONG THEM DOMESTIC AUTO SALES LONG BELEAGUERED ROSE MONTHONMONTH IN FEBRUARY AND JANUARY SOME AUTO MAKERS SAY CAR SALES IN THE FIRST 25 DAYS OF MARCH WERE UP ABOUT 10 FROM A YEAR EARLIER JAPAN'S GOVERNMENT LAST WEEK SAID ITS INDEX OF LEADING INDICATORS WHICH INCLUDES HOUSING STARTS AND COMMODITY PRICES ROSE IN JANUARY ABOVE THE SOCALLED BOOMORBUST LINE THE FIRST TIME THAT'S HAPPENED IN 10 MONTHS CROSSING THE BOOMORBUST LINE GOVERNMENT ECONOMISTS SAY GENERALLY HERALDS ECONOMIC EXPANSION THREE TO SIX MONTHS LATER IN FEBRUARY HOUSING STARTS WERE UP 63 INDUSTRIAL PRODUCTION CREPT UP 19 IN FEBRUARY FROM JANUARY INVENTORIES IN FEBRUARY ALSO DECLINED 12 FROM THE PREVIOUS MONTH MARKING THE THIRD STRAIGHT MONTH OF DECLINE MEANWHILE ELECTRICAL POWER UTILIZATION RATES HAVE INCREASED AND THE MONEY SUPPLY IS HEADED UPWARD IN MARCH THE GOVERNMENT ANNOUNCED THE GROSS NATIONAL PRODUCT GREW BY AN ANNUALIZED 05 IN THE QUARTER ENDED DEC 31 AFTER CONTRACTING THE PREVIOUS QUARTER A RECENT SURVEY BY THE MINISTRY OF FINANCE SHOWED SIGNS OF AN UPTURN IN BUSINESS CONFIDENCE THE NIKKEI STOCK INDEX THE BELLWETHER OF INVESTOR SENTIMENT IN JAPAN GAINED MORE THAN 10 IN MARCH THE TONE OF THE NATION'S PRESS HAS SHIFTED THE NIHON KEIZAI SHIMBUN JAPAN'S LEADING BUSINESS DAILY RAN A FRONTPAGE HEADLINE MONDAY TRUMPETING A FEELING THAT BUSINESS CONDITIONS HAVE HIT BOTTOM NEWSPAPERS' BRIGHTER OUTLOOK HAS A VERY IMPORTANT INFLUENCE ON BUSINESS CONFIDENCE SAYS YUKIO NOGUCHI AN ECONOMIST AT HITOTSUBASHI UNIVERSITY SO IS IT TIME FOR JAPAN'S BUSINESS LEADERS TO HEAVE A SIGH OF RELIEF NOT SO FAST SOME EXPERTS SAY THERE ARE STILL WORRISOME INDICATORS APLENTY A SURVEY BY THE LONGTERM CREDIT BANK OF JAPAN LTD FOR EXAMPLE FOUND CAPITAL INVESTMENT WHICH ACCOUNTS FOR ABOUT A FIFTH OF JAPAN'S GNP IS LIKELY TO DECLINE 4 IN THE CURRENT FISCAL YEAR THAT WOULD MARK A SECOND CONSECUTIVE ANNUAL DECLINE CAPITAL INVESTMENT IN MANUFACTURING ACCORDING TO THE BANK WILL SUFFER ITS SECOND STRAIGHT DOUBLEDIGIT DECLINE TRENDS ALSO AREN'T ENCOURAGING FOR PRIVATE CONSUMPTION WHICH ACCOUNTS FOR MORE THAN 60 OF GNP HOUSEHOLD EXPENDITURES FELL IN JANUARY BY AN INFLATIONADJUSTED AVERAGE OF 21 FROM A YEAR EARLIER IN FEBRUARY DEPARTMENT STORE SALES FELL 59 NOTCHING THE 12TH STRAIGHT MONTH OF DECLINES REAL WAGES MEANWHILE ARE BARELY MAINTAINING LAST YEAR'S LEVELS WHILE BONUS AND OVERTIME PAYMENTS HAVE PLUMMETED MONDAY THE GOVERNMENT SAID THAT ALTHOUGH THE UNEMPLOYMENT RATE REMAINED UNCHANGED IN FEBRUARY THE SIZE OF JAPAN'S LABOR FORCE SHRANK FROM A YEAR EARLIER THE FIRST TIME THAT'S HAPPENED IN MORE THAN SEVEN YEARS ECONOMISTS SAID THE CONTRACTION INDICATES MANY WORKERS HAVE GIVEN UP LOOKING FOR EMPLOYMENT WHAT'S MORE SOME OF THE NUMBERS HIGHLIGHTED BY THE OPTIMISTS MAY NOT BE WHAT THEY SEEM AUTO INDUSTRY EXECUTIVES FOR EXAMPLE SAY THE MARCH SALES FIGURES ONLY LOOK IMPRESSIVE BECAUSE OF HEAVY FISCAL YEAREND DISCOUNTING BY DEALERS AND SPECIAL FACTORS THAT DEPRESSED SALES IN 1992 ANALYSTS AT MERRILL LYNCH JAPAN INC HAVE CAUTIONED CLIENTS THAT SEVERAL OF THE ELEMENTS USED TO COMPILE THE GOVERNMENT'S INDEX OF LEADING INDICATORS INCLUDING MACHINERY ORDERS AND HOUSING STARTS COULD TURN NEGATIVE AGAIN JAPAN'S ECONOMY SAYS BARING SECURITIES' MR BARKER MAY LURCH DOWNWARD AGAIN BEFORE WE HAVE A GENUINE RECOVERY MANY ECONOMISTS PREDICT THE ECONOMY WON'T REBOUND UNTIL SEPTEMBER GETTING THE DIAGNOSIS RIGHT MATTERS A LOT GOVERNMENT OFFICIALS ARE DISCUSSING A PACKAGE OF EMERGENCY MEASURES AIMED AT JOLTING THE ECONOMY OUT OF ITS SLUMP LEAKS TO THE JAPANESE NEWS MEDIA ABOUT THE PACKAGE HAVE BOOSTED OPTIMISM ABOUT THE ECONOMY ULTIMATELY IF THE PACKAGE IS TOO BIG IT COULD OVEREXTEND SOME SECTORS OF THE ECONOMY IF IT'S TOO SMALL THE ECONOMY COULD CONTINUE TO DRIFT A DISCOURAGING PROSPECT NOT JUST FOR JAPAN BUT FOR ITS TRADING PARTNERS WHO ARE EAGER FOR JAPAN TO SOAK UP MORE OF THEIR PRODUCTS 9304010025 930401 CONGRESS IS SET TO APPROVE PLAN TO TRIM DEFICIT SENATE IS TO VOTE TODAY TALKS SUGGEST DIFFICULTY OF IMPLEMENTING EFFORT BY JOHN HARWOOD AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CONGRESS HOPES TO COMPLETE APPROVAL TODAY OF A PLAN TO SHRINK THE BUDGET DEFICIT BY NEARLY 500 BILLION OVER FIVE YEARS BUT LASTMINUTE NEGOTIATIONS SUGGESTED THAT IMPLEMENTING DEFICIT REDUCTION WILL GROW MORE DIFFICULT THE HOUSE LAST NIGHT APPROVED ON A 240184 PARTY LINE VOTE AN AGREEMENT RECONCILING DIFFERING HOUSE AND SENATE PLANS JUST HOURS AFTER IT WAS ANNOUNCED AND THE SENATE THEN BEGAN DEBATE ON THE MEASURE THE COMPROMISE MEETS PRESIDENT CLINTON'S CALL TO REORDER NATIONAL ECONOMIC PRIORITIES AFTER A DOZEN YEARS OF REPUBLICAN ADMINISTRATIONS USING A COMBINATION OF TAX INCREASES AND SPENDING CUTS TO TRIM THE DEFICIT WHILE AT THE SAME TIME BOOSTING SPENDING ON FAVORED INVESTMENTS TO RETOOL THE ECONOMY HOUSE BUDGET COMMITTEE CHAIRMAN MARTIN SABO D MINN WHO NEGOTIATED THE COMPROMISE WITH HIS SENATE COUNTERPART JAMES SASSER D TENN SAID IT WAS BY FAR THE MOST SIGNIFICANT DEFICITREDUCTION AGREEMENT EVER CONSIDERED BY CONGRESS SLOUGHING OFF GOP CHARGES THAT THE PLAN WOULD RAISE TAXES TOO MUCH AND CUT SPENDING TOO LITTLE HOUSE LEADERS SUFFERED JUST A DOZEN DEMOCRATIC DEFECTIONS IN FINAL VOTING NO REPUBLICAN SUPPORTED IT THE RESOLUTION IS PART OF A SET OF ECONOMIC MEASURES INCLUDING MR CLINTON'S 163 BILLION ECONOMIC STIMULUS PACKAGE AND AN EXTENSION OF THE FEDERAL BORROWING LIMIT THROUGH SEPT 30 THAT CONGRESS AIMS TO COMPLETE BEFORE LEAVING FOR ITS SPRING RECESS AT THE END OF THE WEEK A DELIGHTED PRESIDENT CLINTON PRAISED LAWMAKERS YESTERDAY FOR MOVING WITH REMARKABLE SPEED IF THE SENATE PASSES THE RESOLUTION TODAY AS EXPECTED IT WOULD BE THE EARLIEST APPROVAL IN THE 17YEAR HISTORY OF THE CURRENT CONGRESSIONAL BUDGET PROCESS THOUGH SPECIFIC POLICY CHANGES ASSUMED IN THE BUDGET RESOLUTION AREN'T BINDING THE PLAN CALLS ON CONGRESS TO TAKE PAINFUL STEPS TO ACHIEVE 496 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS TAXWRITING COMMITTEES HAVE BEEN ASKED TO RAISE 273 BILLION IN ADDITIONAL REVENUE PRESUMABLY RELYING ON MR CLINTON'S PROPOSALS TO ENACT A BROAD ENERGY TAX AND TO RAISE TAXES ON CORPORATIONS UPPERINCOME AMERICANS AND THE MOST AFFLUENT SOCIAL SECURITY RECIPIENTS COMMITTEES HAVE BEEN ASKED TO CUT MEDICARE BY SOME 48 BILLION TO CUT DEFENSE SPENDING BY SOME 111 BILLION AND TO HOLD OVERALL DISCRETIONARY SPENDING AT OR BELOW THE 1993 LEVEL IN EACH OF THE NEXT FIVE YEARS NEVERTHELESS THE HOUSESENATE NEGOTIATIONS THAT PRODUCED THE COMPROMISE MARKED THE END OF THE DEFICITREDUCTION BIDDING WAR THAT HAD MADE THIS YEAR'S BUDGET DEBATE SO REMARKABLE NEGOTIATORS RETREATED FROM SEVERAL POLITICALLY VULNERABLE POSITIONS ABANDONING THE SENATE'S CALL FOR 22 BILLION MORE IN TAX INCREASES THAN MR CLINTON RECOMMENDED AND ACCEPTING THE SENATE'S DECISION TO SOOTHE FARMSTATE LAWMAKERS BY TRIMMING THE ADMINISTRATION'S REQUESTED AGRICULTURE CUTS BY 23 BILLION THEY ALSO TRIMMED TO 1 BILLION FROM 3 BILLION THE HOUSE PLAN TO CUT DEFENSE BEYOND MR CLINTON'S REQUEST AND WHITTLED DOWN A HOUSE PROPOSAL TO SAVE 8 BILLION BY REDUCING COSTOFLIVING ADJUSTMENTS FOR FEDERAL RETIREES THE NEW COLA LIMITATION APPLIED ONLY TO RETIREES UNDER AGE 62 WOULD ACHIEVE MORE MODEST SAVINGS OF 27 BILLION OVER FIVE YEARS AS A RESULT THE OVERALL DEFICIT REDUCTION IN THE MEASURE SLID BELOW THE 500 BILLION MARK THAT BOTH THE HOUSE AND SENATE BUDGET RESOLUTIONS HAD EXCEEDED HERE WE GO AGAIN CAUTIONED CONSERVATIVE SEN JAMES EXON A NEBRASKA DEMOCRAT WHO NOTED THAT THE OVERALL DEFICITREDUCTION WOULD DROP TO 482 BILLION IF MR CLINTON'S EMERGENCY STIMULUS PACKAGE IS TAKEN INTO ACCOUNT THOUGH MR SASSER DISMISSED THE BACKSLIDING AS REALLY INSIGNIFICANT IT ILLUSTRATES THE DIFFICULTIES LAWMAKERS FACE IN ACHIEVING THE DEFICIT REDUCTION ENVISIONED IN THE RESOLUTION THE SOCALLED RECONCILIATION PROCESS TO IMPLEMENT THE RESOLUTION WHICH HOUSE AND SENATE COMMITTEES ARE TO COMPLETE BY MAY 14 AND JUNE 18 RESPECTIVELY LEAVES PLENTY OF OPPORTUNITY FOR FURTHER TINKERING SOME LAWMAKERS ARE ALREADY DISCUSSING DISCARDING ALL OR PART OF THE ADMINISTRATION'S PROPOSED INVESTMENT TAX CREDIT AND USING THE REVENUE SAVED TO OFFSET PART OF PROPOSED SOCIAL SECURITY TAX INCREASE ON BENEFICIARIES WITH INCOMES OVER 25000 FOR INDIVIDUALS AND 32000 FOR COUPLES THE BUDGET ACTION CAME AS THE SENATE REMAINED MIRED IN A PROLONGED DEBATE OVER THE COMPANION STIMULUS BILL SOUGHT BY THE ADMINISTRATION THE MEASURE WHICH WOULD RELEASE AN ADDITIONAL 32 BILLION FROM FEDERAL TRANSPORTATION TRUST FUNDS REPRESENTS A DOWN PAYMENT OF SORTS TOWARD THE PRESIDENT'S DOMESTIC PRIORITIES BUT REPUBLICANS HAVE BITTERLY PROTESTED THAT THE FULL SUM WOULD BE EXEMPTED FROM STATUTORY SPENDING CAPS ADOPTED IN 1990 IN A SERIES OF ROLL CALLS YESTERDAY THE DEMOCRATIC LEADERSHIP REPEATEDLY BEAT BACK CONSERVATIVE ATTEMPTS TO ALTER THE PACKAGE BUT REPUBLICANS CONTINUE TO DEMONSTRATE THEIR ABILITY TO MUSTER AT LEAST 40 VOTES FOR THEIR POSITION MORE THAN ENOUGH TO PREVENT THE MAJORITY FROM CUTTING OFF DEBATE THIS ISN'T GRIDLOCK IT'S JAWLOCK COMPLAINED SEN ROBERT KERREY D NEB WHO OPPOSES THE PACKAGE YET HAS ARGUED FOR GIVING THE PRESIDENT A FIXED TIME FOR A FINAL VOTE AS THIS WEEK'S SCHEDULED RECESS APPROACHES MAJORITY LEADER GEORGE MITCHELL OF MAINE HAS VOWED TO KEEP THE SENATE IN SESSION UNTIL THE STIMULUS BILL IS COMPLETED AND REPUBLICANS RISK BEING PAINTED AS OBSTRUCTIONISTS WHO HAVE FALLEN ON TIMEWORN FILIBUSTER TECHNIQUES TO DENY THE NEW PRESIDENT HIS ECONOMIC PROGRAM JUST AS DEMOCRATS MUST ADJUST TO THE NOVELTY OF HAVING ONE OF THEIR OWN IN THE WHITE HOUSE THE SENATE DEBATE EXPOSES CONTRADICTIONS IN THE GOP WHICH HAS BEEN WILLING IN THE PAST TO YIELD POWER TO THE EXECUTIVE BRANCH THE SAME CONSERVATIVES WHO NOW CRITICIZE THE DISCRETION GIVEN TO THE ADMINISTRATION IN SPENDING THE STIMULUS FUNDS ARE AMONG THOSE WHO HAVE ARGUED AGAINST CONGRESS'S EARMARKING FUNDS IN THE PAST AND AS MUCH AS REPUBLICANS ARGUE THAT MR CLINTON GOES TOO FAR IN USING HIS EMERGENCY POWERS TO EXEMPT THE BILL FROM BUDGET CAPS THE GOP WANTED THE EXECUTIVE BRANCH TO HAVE THIS SWEEPING POWER WHEN PRESIDENT BUSH WAS IN OFFICE LABOR LOBBYISTS TURNED OUT IN FORCE IN THE SENATE HALLWAY IN SUPPORT OF THE BILL AND THE ADMINISTRATION HAS ENCOURAGED A NETWORK OF MAYORS AND HOME STATE CONTRACTORS TO PUT PRESSURE ON LAWMAKERS INCLUDING SUCH OPPONENTS AS SEN KERREY BY THE SAME TOKEN THE GOP'S RESOLVE IS STIFFENED BY THE FACT THAT THE NEW SPENDING IN THE STIMULUS BILL IS DEFICITFINANCED AND COMES AT A TIME WHEN MEMBERS ARE BEING ASKED TO INCREASE THE GOVERNMENT'S BORROWING AUTHORITY TO FINANCE US DEBT TO PREVENT REPUBLICANS FROM TYING UP THE DEBTLIMIT EXTENSION DEMOCRATS INCLUDED A NEW PROCEDURAL TWIST IN THEIR COMPROMISE BUDGET RESOLUTION THE RESOLUTION WOULD PERMIT BOTH A SHORTTERM EXTENSION OF FEDERAL BORROWING AUTHORITY THROUGH SEPT 30 AND A LONGTERM EXTENSION LASTING BEYOND THE 1994 MIDTERM ELECTIONS AND INTO EARLY 1995 TO RECEIVE THE PARLIAMENTARY PROTECTIONS THAT ACCOMPANY THE BUDGET RECONCILIATION PROCESS THOSE PROTECTIONS WOULD PREVENT REPUBLICANS FROM BLOCKING THE DEBTLIMIT EXTENSION WITH A FILIBUSTER OR CONTROVERSIAL AMENDMENTS THAT WOULD APPEAR TO STOP REPUBLICAN SEN PHIL GRAMM OF TEXAS FROM FOLLOWING THROUGH ON HIS THREAT TO ATTACH A BALANCEDBUDGET CONSTITUTIONAL AMENDMENT TO THE MEASURE 9304010024 930401 HEARD ON THE STREET HEALTHCARE COMPARE FALLS 30 KILLING THEORY SUCH FIRMS CAN THRIVE IN CLINTON HEALTH DRIVE BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE TREACHEROUS HEALTHCARE SECTOR HEALTHCARE COMPARE BECAME THE LATEST CASUALTY PLUNGING 30 YESTERDAY AS ANALYSTS YANKED THEIR BUY OPINIONS ON THE STOCK THE SELLOFF KILLED THE RECENTLY POPULAR THEORY THAT IF ANY STOCK COULD THRIVE IN CLINTON'S BRAVE NEW WORLD OF HEALTH CARE IT WOULD BE COMPANIES IN THE BUSINESS OF HELPING CUT HEALTHCARE COSTS THE STOCK PLUNGED 5 5/8 OR 30 TO 12 7/8 AS INVESTORS BAILED OUT ON VOLUME OF 108 MILLION SHARES TRADING WAS 14 TIMES THE NORMAL DAILY PACE MAKING THE STOCK THE MOST ACTIVE ISSUE ON THE NASDAQ MARKET THE SELLOFF WAS SPARKED WHEN THE COMPANY DISCLOSED LATE TUESDAY THAT IT'S UNCOMFORTABLE WITH 1993 ESTIMATES THAT EXCEED 160 MILLION IN REVENUE AND EARNINGS OF 110 A SHARE THIS HEALTH CARE COSTMANAGEMENT COMPANY IS FAR FROM ATTRACTIVE EVEN AT THE REDUCED PRICE SEVERAL ANALYSTS SAY THE STOCK HAS BEEN GRADUALLY SINKING THIS YEAR AS INVESTORS WORRY ABOUT PRESIDENT CLINTON'S PENDING HEALTHCARE PLAN AND NOW ANALYSTS SAY TRUST IN THE COMPANY'S EARNINGS GROWTH PATTERN HAS BEEN BROKEN A MONTH AGO AT A BIG ANALYST MEETING THE COMPANY REASSURED EVERYONE ON WALL STREET THAT EVERYTHING WAS FINE SAYS PAUL WICK VICE PRESIDENT AND PORTFOLIO MANAGER FOR J& W SELIGMAN & CO THIS NEWS HAS COMPLETELY SHOT THEIR CREDIBILITY THE COMPANY OFFERS UTILIZATION REVIEW SERVICES WHICH MONITOR WHETHER HEALTH CARE IS APPROPRIATE FOR ITS PREFERRED PROVIDER ORGANIZATIONS PROGRAMS IT IS HIRED TO SET UP NETWORKS OF HOSPITALS THAT AGREE TO CUT STANDARD RATES COMPETITION SEEMS TO BE GROWING THE COMPANY SAID THAT AT ALTA HEALTH STRATEGIES EMPLOYEE BENEFIT PLANS AND AMONG STATE FARM INDIVIDUAL POLICYHOLDERS THE RAMPUP OF CLOSED CONTRACTS HAS BEEN SLOWER THAN EXPECTED THERE IS ALSO SOME WEAKNESS IN ENROLLMENT IN ITS FEDERAL EMPLOYEE HEALTH BENEFIT PLAN CANDIDLY I CAN UNDERSTAND WHERE INVESTORS' NERVOUSNESS IS COMING FROM SAYS JOSEPH WHITTERS CHIEF FINANCIAL OFFICER OF THE DOWNERS GROVE ILL COMPANY WE TRY TO BE ON TOP OF GETTING INFORMATION OUT AS QUICKLY AS WE CAN FUNDAMENTALLY THE BUSINESS WE ANTICIPATED TO COME ON FROM MAJOR THIRDPARTY DISTRIBUTORS HASN'T COME ON AS QUICKLY AS WE EXPECTED YESTERDAY A SLEW OF ANALYSTS DOWNGRADED THE STOCK AND LOWERED PROFIT ESTIMATES TO AROUND 105 A SHARE SOME PREVIOUSLY WERE LOOKING FOR 120 A SHARE MR WHITTERS SAYS IT'S FINE THAT'S WHERE THE CONSENSUS IS FALLING PROFIT WAS 84 CENTS A SHARE IN 1992 BEFORE A MERGERRELATED RESTRUCTURING CHARGE HEALTHCARE COMPARE'S NEWS WAS AN EXTRA BRUISE ATOP A BARELY HEALING WOUND FOR INVESTORS IN HEALTHCARE STOCKS WE ALREADY HAVE AN ENVIRONMENT WHERE IT IS HARD TO FIND BUYERS AND TO GIVE THE STREET ANOTHER REASON TO SELL MAKES IT EVEN WORSE SAYS DIRK GODSEY ANALYST WITH HAMBRECHT & QUIST SAN FRANCISCO IT WAS ESPECIALLY HARD NEWS BECAUSE HEALTHCARE COMPARE COULD HAVE BEEN UP WITH THE OTHER HEALTHCARE STOCKS THAT REBOUNDED A LITTLE US HEALTHCARE JUMPED 1 1/2 TO 46 1/4 PACIFICARE HEALTH SYSTEMS CLASS A SHARES ROSE 2 1/2 TO 36 UNITED HEALTHCARE CLIMBED 1 TO 51 1/2 AND FOUNDATION HEALTH ADVANCED 1 3/4 TO 30 FOR HEALTHCARE COMPARE IT'S A CRISIS IN CONFIDENCE SAYS MR GODSEY HE LOWERED HIS RATING TO HOLD FROM BUY AND CUT HIS ESTIMATE TO 105 A SHARE FROM 125 HE SAYS EARNINGS SHOULD STILL BE ABLE TO GROW ABOUT 20 A YEAR THIS MIGHT LURE SOME INVESTORS WHO THINK THE STOCK LOOKS CHEAP AT 12 7/8 DOWN FROM A 52WEEK HIGH OF 38 THE STOCK IS TRADING AT ABOUT 12 TIMES THIS YEAR'S NEW ESTIMATES BUT IN THIS CASE CHEAP DOESN'T EQUAL ATTRACTIVE SAYS ANNE ANDERSON PRESIDENT OF ATLANTIS INVESTMENT A GROWTHSTOCK RESEARCH CONCERN I DON'T THINK THIS IS THE LOWEST PRICE ON THE STOCK SHE SAYS THE STOCK WILL PROBABLY BOUNCE UP A LITTLE BUT IT SEEMS LIKE THEY ARE HAVING TROUBLE GETTING CUSTOMERS TO SIGN ON TO THEIR PLAN AND I WOULDN'T BE SURPRISED IF THIS TURNS OUT TO BE ONLY THE FIRST NEGATIVE ANNOUNCEMENT MONTGOMERY SECURITIES ANALYST LEONARD YAFFEE SAYS GROWTH HAS BEEN CURTAILED SIGNIFICANTLY FOR THE PREFERRED PROVIDER ORGANIZATION THAT IS THE COMPANY'S CRITICAL BUSINESS SEGMENT HE ADDS THE COMPANY HAS BUILT UP AN ENVIABLE PPO NETWORK AND IT MIGHT BE AN ATTRACTIVE STOCK AS A TAKEOVER CANDIDATE BUT THAT IS A DIFFERENT KIND OF PLAY SIX INSIDERS AT HEALTHCARE COMPARE SOLD 170000 SHARES EARLY LAST SUMMER AT 25 1/4 TO 36 5/8 AS REPORTED IN AUGUST AND THERE WAS MORE SELLING IN LATE 1992 ACCORDING TO FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION ALL TOLD 10 EXECUTIVES OR DIRECTORS SOLD 26 MILLION SHARES IN 1992 AT PRICES HIGHER THAN TODAY'S THERE HAS BEEN HARDLY ANY INSIDER SELLING REPORTED THIS YEAR HEALTHCARE COMPARE'S STOCK HASN'T SEEN THE LAST OF ITS ROCKY RIDE PREDICTS MR YAFFEE WHO ADDS LEGISLATION WILL PRESENT AN EVEN TOUGHER COMPETITIVE ENVIRONMENT FOR THE COMPANY WHATEVER FORM IT TAKES ALEXANDRA PEERS CONTRIBUTED TO THIS ARTICLE YEAR ENDED DEC 31 1992 FOURTH QUARTER DEC 31 1992 9304010023 930401 INTERNATIONAL JAPANESE VCR EXPORTS DROP TOKYO JAPANESE EXPORTS OF VIDEOCASSETTE RECORDERS IN FEBRUARY PLUNGED 25 FROM A YEAR EARLIER TO 1200000 UNITS THE ELECTRONICS INDUSTRY ASSOCIATION OF JAPAN SAID FEBRUARY'S DROP MARKED THE 24TH CONSECUTIVE MONTH OF YEARONYEAR DECLINES IN VCR EXPORTS VCR SHIPMENTS TO KEY MARKETS SUCH AS THE US AND CHINA CONTINUED TO DROP BUT THOSE TO SEVERAL ASIAN COUNTRIES POSTED STRONG GAINS 9304010022 930401 BUSINESS BRIEF PRESLEY COS LENDERS AGREE TO EXTEND PRINCIPAL CREDIT FACILITY PRESLEY COS SAID ITS BANKS AGREED TO AMEND ITS PRINCIPAL CREDIT AGREEMENT FORESTALLING THE IMMEDIATE REPAYMENT OF 3172 MILLION OUTSTANDING BUT SLAPPING HARSH NEW RESTRICTIONS ON THE NEWPORT BEACH CALIF HOME BUILDING COMPANY THE AMENDMENT WOULD EXTEND THE CREDIT FACILITY FOR TWO YEARS AND INCREASE THE LINE TO 340 MILLION INCLUDING LETTERS OF CREDIT UP TO 10 MILLION LIMITED TO THE EXTENT OF ELIGIBLE COLLATERAL HOWEVER THE COMPANY WILL PAY A HIGHER INTEREST RATE AND THE LENDERS WILL HAVE THE RIGHT TO BUY UP TO 10 OF PRESLEY'S COMMON STOCK FOR 5 A SHARE UNDER CERTAIN CIRCUMSTANCES THE AGREEMENT LIMITS THE COMPANY'S ABILITY TO ENGAGE IN CERTAIN TRANSACTIONS INCLUDING THE PURCHASE OF NEW LAND IT ALSO LIMITS THE USE OF BORROWING PROCEEDS FOR PROJECTRELATED AND GENERAL AND ADMINISTRATIVE COSTS PRESLEY ALSO SAID IT HAS SIGNED SHORTTERM LOAN EXTENSIONS THROUGH MAY 31 ON TWO OF ITS JOINT VENTURE PROJECTS 9304010021 930401 BOARD OF CONTRIBUTORS GROWTH ISN'T EVERYTHING BY HERBERT STEIN IN HIS ECONOMIC SPEECH ON FEB 17 PRESIDENT CLINTON WARNED THE NATION THAT THE WAY THINGS HAVE BEEN GOING IT WOULD BE 100 YEARS BEFORE PERCAPITA INCOME ON THE AVERAGE IN THE US DOUBLED HE OBVIOUSLY THOUGHT THAT WAS A SHOCKING PROSPECT AND THAT THE GOVERNMENT SHOULD AND WOULD DO SOMETHING ABOUT IT I HAVE BEEN BROODING ABOUT THAT EVER SINCE ONLY A MINOR PART OF MY CONCERN IS THAT HE CHOSE A RATHER UNREPRESENTATIVE PERIOD TO ARRIVE AT HIS PROJECTED RATE OF GROWTH A FIVEYEAR PERIOD ENDING IN 1972 WHEN RECOVERY FROM RECESSION WAS INCOMPLETE IF HE HAD TAKEN A LONGER PERIOD SAY FROM 1973 TO THE PRESENT HE WOULD HAVE FOUND THAT PERCAPITA INCOME DOUBLES IN ABOUT 60 YEARS MOREOVER MY CONCERN IS NOT ESPECIALLY DIRECTED AT MR CLINTON ALMOST EVERYONE REPUBLICANS AS WELL AS DEMOCRATS SEEMS TO SHARE THIS FEELING THAT THE RATE OF GROWTH IS TERRIBLY LOW AND THAT THE GOVERNMENT NEEDS TO DO SOMETHING ABOUT IT THEY ONLY DIFFER ON WHAT THE GOVERNMENT SHOULD DO WHAT PERPLEXES ME IS THE IDEA THAT DOUBLING PERCAPITA INCOME IN A HUNDRED YEARS IS SHOCKINGLY SLOW THERE MUST SURELY HAVE BEEN FEW CENTURIES AT ANY TIME OR IN ANY PLACE WHEN PERCAPITA INCOME DOUBLED IF IN THE FIRST YEAR OF THE CHRISTIAN ERA PERCAPITA INCOME HAD BEEN 400 ABOUT LIKE TODAY'S BANGLADESH AND HAD DOUBLED EVERY HUNDRED YEARS PERCAPITA INCOME TODAY WOULD BE ABOUT 400 MILLION WHEREAS IT IS ONLY 20000 IN THE US IF PERCAPITA INCOME DOUBLES EVERY CENTURY FROM TODAY IN 20 MORE CENTURIES IT WILL BE 20 BILLION IS THAT TOO LITTLE IF YOU SAY THAT DOUBLING IN A CENTURY IS TOO LITTLE YOU MUST HAVE SOME IDEA OF WHAT IS ENOUGH SAYING THAT YOU WANT MORE IS NOT HELPFUL OBVIOUSLY NEITHER AS INDIVIDUALS NOR AS A SOCIETY DO WE MEAN THAT WE WANT TO DOUBLE INCOME AS FAST AS POSSIBLE RAISING THE RATE OF GROWTH IS NOT FREE BASICALLY IT REQUIRES WITHHOLDING SOME PRESENT INCOME FROM USES THAT DO NOT PROMOTE GROWTH WHICH WE CALL CONSUMPTION TO USES THAT DO PROMOTE GROWTH WHICH WE CALL INVESTMENT NO ONE THINKS THAT CONSUMPTION SHOULD BE HELD DOWN TO THE SUBSISTENCE LEVEL SO THAT INVESTMENT AND GROWTH CAN BE MAXIMIZED THE QUESTIONS ARE HOW MUCH TO RESTRAIN CONSUMPTION AND WHO SHOULD DECIDE OF COURSE INDIVIDUALS AND FAMILIES MAKE DECISIONS ABOUT THAT EVERY DAY THEY DECIDE HOW MUCH OF THEIR INCOME TO CONSUME AND HOW MUCH TO SAVE INCLUDING SAVING IN THE FORM OF INVESTMENT IN THE EDUCATION OF THEIR CHILDREN AND WHAT THEY INVEST IS NOT ONLY MONEY BUT THEIR TIME AND ATTENTION IN INCREASING THEIR OWN EARNING POWER AND THAT OF THEIR CHILDREN THESE INDIVIDUAL DECISIONS ADDED TOGETHER ARE THE MAJOR FACTOR DETERMINING THE RATE OF NATIONAL ECONOMIC GROWTH A LITTLE ARITHMETIC WILL ILLUSTRATE HOW IMPORTANT THESE DECISIONS ARE SUPPOSE THERE IS A FAMILY WITH AN EARNED INCOME FROM WAGES OF 30000 ALL OF WHICH IT SPENDS ON CONSUMPTION IF THAT INCOME GROWS AT THE RATE THAT DISTRESSES MR CLINTON THE FAMILY'S INCOME WILL DOUBLE IN 100 YEARS SUPPOSE THAT INSTEAD OF CONSUMING ALL THEIR INCOME THEY SAVE 10 OF IT EACH YEAR AND INVEST THEIR SAVINGS WHERE THEY WILL YIELD 5 ANNUAL INTEREST NOW INSTEAD OF TAKING 100 YEARS DOUBLING THEIR INCOME WILL TAKE ONLY ABOUT 60 THAT IS A BIG DIFFERENCE AND THE MORE FAMILIES THAT MAKE THAT DECISION THE BIGGER WILL BE THE INCREASE IN NATIONAL GROWTH TO SAY THAT SHORTENING THE PERIOD REQUIRED TO DOUBLE PERCAPITA INCOME IS A MAJOR OBJECTIVE OF GOVERNMENT POLICY IS TO SAY THAT THESE PRIVATE DECISIONS ARE NOT ADEQUATE IT SAYS THAT THE GOVERNMENT SHOULD RESTRAIN CONSUMPTION BY RESTRAINING ITS OWN CONSUMPTION BY RESTRAINING THE PRIVATE CONSUMPTION IT SUPPORTS THROUGH TRANSFER PAYMENTS AND BY RAISING TAXES THE GOVERNMENT SHOULD THEN EITHER DIRECTLY INVEST THE RESOURCES RELEASED FROM CONSUMPTION OR LEAVE THEM AVAILABLE FOR PRIVATE INVESTMENT THROUGH THE REDUCTION OF ITS BUDGET DEFICIT PEOPLE DIFFER STRENUOUSLY ABOUT THE COMBINATION OF MEASURES TO BE USED SOME INCLUDING PRESIDENT CLINTON PREFER MORE TAXES AND MORE GOVERNMENT INVESTMENT OTHERS INCLUDING MANY REPUBLICANS PREFER LESS GOVERNMENT CONSUMPTION AND GOVERNMENTFINANCED CONSUMPTION AND A SMALLER BUDGET DEFICIT BUT IN BRIEF ALL SIDES AGREE THAT THE GOVERNMENT SHOULD FORCE SOCIETY TO SAVE AND INVEST MORE WHY SHOULD THE GOVERNMENT DO THAT THE REASON THAT IS PROBABLY OFFERED MOST OFTEN IS THAT BY RUNNING A BIG BUDGET DEFICIT THE GOVERNMENT IS NOW KEEPING SOCIETY FROM SAVING MORE SINCE THE DEFICIT OFFSETS SOME PRIVATE SAVING AT LEAST IT IS SAID THE GOVERNMENT SHOULD STOP DOING THAT BUT IF PRIVATE INDIVIDUALS WERE DISTURBED BY THE FACT THAT THE GOVERNMENT IS USING UP THE PRIVATE SAVING AND THUS RETARDING THE RATE OF GROWTH THEY COULD SAVE MORE IF PEOPLE WANTED THE INCOMES OF THEIR CHILDREN AND GRANDCHILDREN TO DOUBLE IN LESS THAN 100 YEARS THEY COULD ACCOMPLISH THAT IN SPITE OF THE BUDGET DEFICIT BY SAVING MORE AS THE EXAMPLE GIVEN EARLIER ILLUSTRATES APPARENTLY PEOPLE DO NOT CARE IN THEIR PRIVATE BEHAVIOR WHY SHOULD THEY CARE IN THEIR PUBLIC BEHAVIOR AS CITIZENS IT MAY BE THAT THE GOVERNMENT HAS ACCESS TO KINDS OF INVESTMENT THAT ARE MORE PRODUCTIVE THAN THOSE PRIVATE INDIVIDUALS CAN MAKE THERE WOULD BE AN ARGUMENT FOR GOVERNMENT INVESTMENT IN THOSE CASES I SUPPOSE THAT THE LOUISIANA PURCHASE WAS AN EXAMPLE OF SUCH AN INVESTMENT AND THE PURCHASE OF ALASKA MAY HAVE FINALLY TURNED OUT TO BE A GOOD INVESTMENT ALSO BUT THE DESIRABILITY OF SUCH INVESTMENTS DOES NOT DEPEND ON THE RATE OF AGGREGATE GROWTH IN THE ECONOMY IT MAY ALSO BE TRUE THAT ACCELERATING AGGREGATE GROWTH HAS BENEFITS OF A KIND THAT PRIVATE INDIVIDUALS ARE UNLIKELY TO TAKE INTO ACCOUNT BUT THESE BENEFITS ARE NOT EASY TO IDENTIFY PERCAPITA NATIONAL INCOME DOUBLED IN THE PAST 35 YEARS AND ONE CAN ASK WHAT BENEFITS THAT INCREASE YIELDED ASIDE FROM THE INCREASE IN PRIVATE CONSUMPTION AND ASSETS THAT MOTIVATED THE PRIVATE EFFORT THERE WERE SOME REAL GAINS IN THAT PERIOD THE END OF THE COLD WAR FOR EXAMPLE AND THE REDUCTION OF DISCRIMINATION AGAINST WOMEN AND MINORITIES BUT THE RAPID GROWTH OF AVERAGE INCOMES WAS NOT ESSENTIAL FOR THOSE GAINS THERE WAS ALSO A DETERIORATION OF THE QUALITY OF LIFE IN SOME RESPECTS WHICH THE RAPID GROWTH OF INCOMES DID NOT PREVENT SOMETIMES PEOPLE SAY THAT ALTHOUGH ACCELERATING THE GROWTH OF THE INCOME OF THE AVERAGE AMERICAN MAY NOT BE TERRIBLY IMPORTANT AS AN OBJECTIVE OF NATIONAL POLICY ACCELERATING THE GROWTH OF THE INCOME OF THE POOREST MOST DISADVANTAGED PART OF THE AMERICAN POPULATION IS IMPORTANT I AGREE WITH THAT THE QUESTION IS WHETHER FEASIBLE MEASURES TO ACCELERATE THE GROWTH OF AVERAGE INCOMES ARE THE MOST EFFICIENT WAY TO ACCELERATE THE GROWTH OF THE INCOME OF THE POOREST PEOPLE IS IT MORE EFFICIENT TO TRY TO RAISE THE TIDE IN THE HOPE OF LIFTING ALL THE BOATS INCLUDING THE SUBMERGED ONES THAN TO TRY TO DO SOMETHING ABOUT THE SUBMERGED ONES THEMSELVES IS IT MORE IMPORTANT TO REDUCE THE DEFICIT OR TO INVEST IN A HIGHSPEED TRAIN AND A FIBEROPTIC NETWORK THE CLINTONIAN PRESCRIPTION FOR GROWTH THAN TO TRY TO IMPROVE THE EDUCATION AND TRAINING OF THE DISADVANTAGED I DOUBT IT IN 1960 EDWARD DENISON AND I WROTE AN ESSAY ON ECONOMIC GROWTH AND HIGH EMPLOYMENT FOR THE COMMISSION ON NATIONAL GOALS WE SAID IN CONCLUSION THE NUMBER OF GOALS CALLING FOR OUR ATTENTION IS LARGE TO HELP SET THE UNDERDEVELOPED WORLD ON THE PATH OF ECONOMIC PROGRESS TO REDUCE THE BARRIERS OF NATIONALISM AND RACIALISM TO STRENGTHEN OUR NATIONAL SECURITY TO IMPROVE THE LIVES WE LEAD WITH OUR IMMENSE FLOW OF GOODS AND SERVICES TO SET A FLOOR OF ECONOMIC SECURITY AND WELFARE FOR ALL WE NEED NOT FEEL GUILTY OF NEGATIVISM OR PASSIVITY IF WE DECIDE THAT ACCELERATING GROWTH IS NOT ONE OF OUR MOST CRITICAL NEEDS I AM OF THE SAME OPINION STILL OF COURSE MANY THINGS HAVE CHANGED REAL PERCAPITA INCOME IS NOW TWICE AS HIGH AS IT WAS BUT THE RATE OF GROWTH IS MUCH LESS THAN IT WAS THEN PERHAPS OUR CONCLUSION OF 1960 IS NOT VALID TODAY BUT WHAT DOES SEEM TO ME UNDENIABLE IS THAT WE OUGHT TO HAVE MORE EXPLICIT DISCUSSION THAN WE DO OF THE PRIORITY TO BE ATTACHED TO AGGREGATE GROWTH A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW 9304010020 930401 WHO'S NEWS MAXXAM INC MAXXAM INC HOUSTON JOHN A CAMPBELL 50YEAROLD PRESIDENT AND DIRECTOR OF MAXXAM'S PACIFIC LUMBER CO UNIT WAS NAMED TO THE ADDITIONAL POSITION OF CHIEF EXECUTIVE THE ALUMINUM FOREST PRODUCT AND REAL ESTATE CONCERN SAID THE POST HAD BEEN VACANT 9304010019 930401 MARRIOTT'S PROPOSAL TO SPLIT UP MEETS MORE OPPOSITION BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MARRIOTT CORP'S REVISED PLAN TO SPLIT INTO TWO COMPANIES RAN INTO FRESH OPPOSITION FROM A NEWLY ORGANIZED GROUP OF PREFERRED STOCKHOLDERS AND FROM FLORIDA'S PENSION FUNDS HOLDERS OF PREFERRED STOCK AND LIQUID YIELD OPTION NOTES REPRESENTING ABOUT 64 OF MARRIOTT'S FULLY DILUTED SHARES SAID THEY FORMED A GROUP TO OPPOSE MARRIOTT'S REVISED PLAN TO SPLIT INTO A HIGHGROWTH HOTELMANAGEMENT COMPANY AND A MORE SPECULATIVE REALESTATE COMPANY LADEN WITH DEBT MARRIOTT WHICH ANGERED BONDHOLDERS WHEN IT FIRST UNVEILED ITS REORGANIZATION PLAN LAST YEAR RELEASED A REVISED PLAN LAST MONTH WHICH WAS ACCEPTED BY INSTITUTIONS HOLDING ABOUT 400 MILLION OF ITS 19 BILLION IN PUBLICLY TRADED BONDS OPPOSITION PERSISTS HOWEVER A GROUP OF PREFERRED STOCKHOLDERS INCLUDING HARVARD COLLEGE UNION BANK OF SWITZERLAND AND ITS UBS SECURITIES INC UNIT AMONG OTHERS SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT THEY REACHED AN AGREEMENT YESTERDAY TO SHARE THE COSTS OF OPPOSING MARRIOTT AND MAY PURSUE LEGAL ACTION NEGOTIATIONS OR A SETTLEMENT THE GROUP CALLED THE REORGANIZATION PLAN UNLAWFULLY COERCIVE OF AND DETRIMENTAL TO HOLDERS OF PREFERRED AND CHARGED MARRIOTT WITH BREACHING ITS FIDUCIARY DUTY THE GROUP ALSO SAID IT WOULD SEEK COMPENSATION IF THE PLAN GOES THROUGH AS PROPOSED MARRIOTT COMMON SHAREHOLDERS ARE DUE TO VOTE ON THE PLAN AT THE COMPANY'S ANNUAL MEETING TENTATIVELY SCHEDULED FOR JUNE 22 A MARRIOTT SPOKESMAN SAID THE COMPANY IS IN CONTINUING NEGOTIATIONS WITH ATTORNEYS FOR THE PREFERRED HOLDERS HE DECLINED TO SPECULATE ON WHETHER AN AGREEMENT WILL BE REACHED SEPARATELY THE FLORIDA BOARD OF ADMINISTRATION WHICH MANAGES ABOUT 33 BILLION ON BEHALF OF THE FLORIDA PUBLIC EMPLOYEE RETIREMENT SYSTEM LAST WEEK FILED A LAWSUIT TO BLOCK THE MARRIOTT PLAN IT FILED ITS SUIT BOTH IN FEDERAL COURT IN MARYLAND AND IN A FLORIDA STATE COURT BECAUSE OF THE PLAN WHICH SENT MARRIOTT'S BOND PRICES PLUNGING WHEN IT WAS FIRST ANNOUNCED THE FLORIDA PENSION FUNDS WOULD HAVE A LOSS OF AN ESTIMATED 14 MILLION ON THEIR MARRIOTT BONDHOLDINGS IF THEY SOLD THEM NOW SAID LUTHER JONES MANAGER OF CORPORATE AFFAIRS FOR THE BOARD OF ADMINISTRATION MARRIOTT SAID THERE ARE NO NEW ISSUES IN THE PENSION FUNDS' LAWSUIT 9304010018 930401 POLITICS & POLICY WHITE HOUSE ENVIRONMENTAL OFFICIAL MCGINTY HAS CLOUT TO THE DISMAY OF SOME OIL EXECUTIVES BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DAY AFTER PRESIDENT CLINTON PROPOSED HIS BROADBASED ENERGY TAX A GROUP OF OIL EXECUTIVES WAS USHERED INTO THE WHITE HOUSE TO BE BRIEFED BY AN ADMINISTRATION EAGER TO SOOTHE BUT WHEN IT WAS OVER THE 29YEAROLD OFFICIAL WHO PRESIDED HAD LEFT SOME OF THEM EVEN MADDER THE AIDE KATHLEEN MCGINTY WAS ASKED AT THE MEETING WHY THE ENERGY TAX ON OIL WOULD BE MORE THAN DOUBLE THE RATE FOR COAL AND NATURAL GAS HER BLUNT RESPONSE WAS THAT OIL IMPOSES UNIQUE ENVIRONMENTAL AND NATIONALSECURITY COSTS ON SOCIETY AFTERWARD SOME OF THE OIL EXECUTIVES COMPLAINED THAT LISTENING TO HER WAS AS ONE PUT IT LIKE LISTENING TO A COLLEGE FRESHMAN WHAT MS MCGINTY LACKS IN POLITICAL TACT SHE MORE THAN MAKES UP IN CLOUT KNOWN TO THE PRESIDENT AND VIRTUALLY EVERYONE ELSE AS KATIE MS MCGINTY HEADS THE NEW WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY WHICH IS QUICKLY SHAPING UP TO BE PRESIDENT CLINTON'S AND PERHAPS MORE IMPORTANTLY VICE PRESIDENT ALBERT GORE'S MAIN CLEARINGHOUSE ON ENVIRONMENTAL MATTERS AS SUCH SHE IS ONE OF THE MOST POWERFUL OF THE WHITE HOUSE'S YOUTH BRIGADE OF 20SOMETHING POLICY AIDES IT IS NOT A PLEASING PROSPECT FOR SOME IN INDUSTRY WHO VIEW HER AS LACKING IN EXPERIENCE KATIE MCGINTY IS A CLOISTERED ACOLYTE OF ALBERT GORE COMPLAINS KENT JEFFREYS DIRECTOR OF ENVIRONMENTAL STUDIES FOR THE COMPETITIVE ENTERPRISE INSTITUTE A PROMARKET GROUP PARTLY FUNDED BY INDUSTRY THAT BATTLES FREQUENTLY WITH ENVIRONMENTALISTS SHE HAS NO BACKGROUND OR EXPERIENCE MR GORE FOR WHOM MS MCGINTY PREVIOUSLY WORKED AS A SENATE AIDE PRAISES MS MCGINTY'S GREAT KNOWLEDGE OF THE FULL RANGE OF ENVIRONMENTAL ISSUES AND THE ECONOMIC DIMENSIONS OF ENVIRONMENTAL ISSUES SHE SITS ON THE NATIONAL SECURITY COUNCIL THE NATIONAL ECONOMIC COUNCIL AND THE DOMESTIC POLICY COUNCIL AND COULD WELL PLAY A MORE INFLUENTIAL ROLE ON THE ENVIRONMENT THAN THOSE WHO HEAD THE ENVIRONMENTAL PROTECTION AGENCY THE INTERIOR DEPARTMENT AND THE ENERGY DEPARTMENT IT IS MS MCGINTY'S OFFICE NOT INTERIOR THAT IS TAKING THE LEAD IN PREPARATIONS FOR THIS WEEK'S FOREST SUMMIT IN WHICH ENVIRONMENTALISTS AND TIMBER INDUSTRY EXECUTIVES WILL ATTEMPT TO HASH OUT THEIR DIFFERENCES IN DISCUSSION SESSIONS TO BE ATTENDED BY THE PRESIDENT AND VICE PRESIDENT SHE IS ALSO PLAYING A KEY ROLE IN AN NSCDIRECTED COMPREHENSIVE REVIEW OF US GLOBAL ENVIRONMENTAL POLICIES WHICH IS EXPECTED TO BE COMPLETED NEXT MONTH ALREADY SHE HAS ACCESS THAT MOST CABINET SECRETARIES CAN ONLY ENVY SHE TALKS TO MR GORE AT LEAST ONCE A DAY AND IS SAID TO MEET FREQUENTLY WITH THE PRESIDENT JUST RECENTLY MS MCGINTY AND MR GORE SCORED A MAJOR VICTORY OVER THE STATE JUSTICE AND DEFENSE DEPARTMENTS WHEN PRESIDENT CLINTON DECIDED AGAINST APPEALING A FEDERAL APPEALS COURT DECISION THAT FOR THE FIRST TIME EXTENDED JURISDICTION OF US ENVIRONMENTAL LAW BEYOND US BORDERS THE DECISION CONCERNED ANTARCTICA AN INTERNATIONAL ZONE BUT STATE DEFENSE AND JUSTICE ARGUED THAT IF UNCHALLENGED IT COULD LEAD TO BROADER APPLICATIONS ON THE HIGH SEAS IN OUTER SPACE AND IN OTHER NATIONS MS MCGINTY WHO TRAINED AS BOTH A CHEMIST AND AN ATTORNEY BEFORE JOINING THENSEN GORE'S LEGISLATIVE STAFF FRESH OUT OF LAW SCHOOL IN 1989 IS GREATLY RESPECTED BY ENVIRONMENTALISTS LIZ BARRATTBROWN A SENIOR ATTORNEY FOR THE NATURAL RESOURCES DEFENSE COUNCIL PRAISES HER INTELLIGENCE AND ESPECIALLY HER UNFLAPPABILITY WHICH AMAZES ME GIVEN HOW MUCH PRESSURE SHE HAS ON HER NOW MS MCGINTY HAS ALSO WON THE RESPECT OF AT LEAST SOME INDUSTRY FIGURES ISABELLE CLAXTON A LOBBYIST AT MERCK & CO SAYS MS MCGINTY OFFERED STRONG SUPPORT TO NEGOTIATIONS MERCK CONDUCTED WITH ENVIRONMENTALISTS AND OTHER DRUG FIRMS OVER THE INTERNATIONAL BIODIVERSITY CONVENTION A TREATY AS YET UNSIGNED BY THE US PLACING GUIDELINES ON THE COMMERCIALIZATION OF PLANT AND ANIMAL LIFE THUS FAR HOWEVER MS MCGINTY HAS SHOWN A GREATER MASTERY OF ENVIRONMENTAL ISSUES THAN OF THE POLITICS SURROUNDING THEM THE ENVIRONMENTAL GROUP GREENPEACE FOR INSTANCE IS MAD THAT SHE WOULDN'T MEET WITH ITS PROTESTERS AFTER MR GORE ISSUED AND THEN BACKED AWAY FROM A WRITTEN PLEDGE THAT THE CLINTON ADMINISTRATION WOULD BLOCK THE TEST BURN OF A HAZARDOUS WASTE INCINERATOR IN EAST LIVERPOOL OHIO RICK HIND A LEGISLATIVE ANALYST AT GREENPEACE ACCUSES THE ADMINISTRATION OF DESERTING ITS ALLIES ON THE MATTER THEN THERE IS THE MEETING WITH OIL INTERESTS OVER THE ENERGY TAX NOT EVERYONE BLAMES MS MCGINTY FOR THE HOSTILE TONE THAT QUICKLY DEVELOPED TONY SANCHEZ CHAIRMAN OF SANCHEZO'BRIEN OIL & GAS CORP A HOUSTONBASED INDEPENDENT EXPLORATION COMPANY SAYS THE REAL FAULT LAY WITH CHARLES DIBONA PRESIDENT OF THE AMERICAN PETROLEUM INSTITUTE WHO INSISTENTLY PEPPERED MS MCGINTY AND OTHERS PRESENT WITH SKEPTICAL QUESTIONS ABOUT HOW THE TAX WOULD WORK ACCORDING TO MR SANCHEZ MR DIBONA WAS RUDE AND MADE SLY REMARKS AT THE MEETING I THOUGHT IT WAS VERY UNBECOMING HE SAYS MR DIBONA DENIES HE BEHAVED DISRESPECTFULLY SAYING ONLY THAT HE ASKED A NUMBER OF VERY DIRECT QUESTIONS THAT MS MCGINTY AND OTHER ADMINISTRATION OFFICIALS HAD DIFFICULTY ANSWERING SINCE THE MEETING HE SAYS THE ADMINISTRATION HAS MODIFIED ITS PROPOSAL IN CERTAIN WAYS TO ADDRESS SOME OF HIS CONCERNS BUT HE AND HIS GROUP WERE EXCLUDED ALONG WITH MOBIL AND A HANDFUL OF OTHER COMPANIES FROM A SUBSEQUENT ADMINISTRATION MEETING WITH OILINDUSTRY OFFICIALS ON THE TAX AN ADMINISTRATION SOURCE SAYS THE DECISION TO EXCLUDE THEM WAS MADE AT THE WHITE HOUSE BUT NOT BY MS MCGINTY ASKED ABOUT THE OMISSION MS MCGINTY INSISTS THAT MR DIBONA AND THE OTHERS ARE ALL WELCOME IT'S ONLY A MATTER OF THEM PICKING UP THE PHONE AND COMING BY SHE SAYS 9304010017 930401 WHO'S NEWS FEDERAL EXPRESS CORP FEDERAL EXPRESS CORP MEMPHIS TENN DAVID J BRONCZEK VICE PRESIDENT AND GENERAL MANAGER OF FEDERAL EXPRESS CANADA LTD WAS NAMED SENIOR VICE PRESIDENT EUROPE AFRICA AND MEDITERRANEAN AT THIS AIREXPRESS CONCERN MR BRONCZEK WHO IS 39 YEARS OLD AND STARTED AT THE COMPANY AS A COURIER IN 1976 SUCCEEDS KENNETH NEWELL 55 WHO WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT RETAIL SERVICE OPERATIONS JON W SLANGERUP WHO IS 43 AND HAS BEEN DIRECTOR OF CUSTOMER SERVICE IN CANADA SUCCEEDS MR BRONCZEK AS VICE PRESIDENT AND GENERAL MANAGER THERE THE MOVES ARE EFFECTIVE JUNE 1 9304010016 930401 BLOCKBUSTER ACQUIRES STAKE FORT LAUDERDALE FLA BLOCKBUSTER ENTERTAINMENT CORP SAID IT COMPLETED THE ACQUISITION OF A 482 STAKE IN SPELLING ENTERTAINMENT GROUP INC FROM AMERICAN FINANCIAL CORP CINCINNATI AND RELATED ENTITIES IN A STOCK SWAP VALUED AT 144 MILLION IN EXCHANGE FOR THE 245 MILLION SHARES OF SPELLING BLOCKBUSTER ISSUED ABOUT 76 MILLION NEW SHARES OF ITS COMMON STOCK BLOCKBUSTER NOW OWNS ABOUT 538 OF SPELLING 9304010015 930401 MICHAELS STORES REPORTS SALES UP IRVING TEXAS MICHAELS STORES INC SAID SAMESTORE SALES JUMPED 4 IN MARCH PARTLY THE RESULT OF A NEW ADVERTISING CIRCULAR THE ARTS AND CRAFTS RETAILER SAID TOTAL SALES FOR THE MONTH INCREASED 22 TO 354 MILLION 9304010014 930401 INTERNATIONAL RUSSIAN AID PLAN FOR NOW REQUIRES NO NEW FUNDING BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE 1 BILLIONPLUS RUSSIAN AID PACKAGE PRESIDENT CLINTON WILL UNVEIL IN VANCOUVER BRITISH COLUMBIA THIS WEEKEND WILL REQUIRE NO NEW FUNDING A FACT THAT SHOULD MAKE IT MORE POLITICALLY PALATABLE TO US VOTERS SKEPTICAL ABOUT FOREIGN AID BUT THAT BENEFIT WON'T LAST LONG JUST 10 DAYS AFTER THE VANCOUVER SUMMIT OFFICIALS FROM THE GROUP OF SEVEN INDUSTRIAL COUNTRIES WILL MEET IN TOKYO TO COME UP WITH WHAT THEY HOPE WILL BE A MULTIBILLIONDOLLAR BAILOUT FOR RUSSIA WHILE THAT PACKAGE IS EXPECTED TO DRAW HEAVILY ON LOANS FROM THE INTERNATIONAL MONETARY FUND AMERICA'S CONTRIBUTION COULD STILL GO AS HIGH AS 2 BILLION AND WILL ALMOST CERTAINLY REQUIRE NEW AID LEGISLATION FROM CONGRESS SO FAR THE CLINTON ADMINISTRATION HAS PROPOSED SPENDING 700 MILLION ON AID TO ALL THE FORMER SOVIET REPUBLICS IN FISCAL 1994 WHICH WILL BEGIN OCT 1 PREVIOUSLY THE ADMINISTRATION HAD CONSIDERED ASKING CONGRESS FOR AS MUCH AS 1 BILLION IN NEW MONEY FOR RUSSIA BUT WOULD HAVE FACED A PUBLIC OUTCRY WITH SUCH A REQUEST FOR ADDITIONAL FOREIGN AID ADMINISTRATION OFFICIALS REFUSED TO PUT A PRICE TAG ON THE VANCOUVER PACKAGE BUT ONE TOP AIDE SAID IT WOULD BE SIGNIFICANTLY MORE THAN 1 BILLION THE FUNDS WILL BE DRAWN IN PART FROM RUSSIAN HUMANITARIAN AND TECHNICAL ASSISTANCE ALLOCATED FOR FISCAL 1992 AND 1993 BUT NEVER SPENT SOME OF THE FUNDS WILL BE FOUND IN OTHER AGENCIES' BUDGETS AND THE PACKAGE WILL ALSO DRAW HEAVILY ON THE 800 MILLION OF UNSPENT MONEY APPROVED BY THE CONGRESS OVER THE PAST TWO YEARS TO HELP FINANCE RUSSIAN DENUCLEARIZATION WE'RE PROMISING ONLY WHAT WE'RE SURE WE CAN DELIVER SAID A TOP OFFICIAL THERE'LL BE NO SMOKE AND MIRRORS HERE IN ADDITION PRESIDENT CLINTON COULD OFFER AS MUCH AS 1 BILLION IN AGRICULTURAL AID UNDER THE AGRICULTURE DEPARTMENT'S FOOD FOR PROGRESS PROGRAM A CONTRIBUTION CERTAIN TO PLEASE US FARMERS BUT THE TIMING HASN'T BEEN DECIDED THE VANCOUVER PACKAGE IS EXPECTED TO INCLUDE A HOUSING PROGRAM FOR RUSSIAN MILITARY OFFICERS FINANCIAL AND TECHNICAL HELP IN REPAIRING LEAKY OIL AND GAS PIPELINES AND A PRIVATE ENTERPRISE FUND FOR NEW RUSSIAN ENTREPRENEURS 9304010013 930401 CANADA CONDUCTS BOND AUCTION THE COUPON RATE WAS SET AT 65 THE AVERAGE BID WAS 6605 FOR A PRICE EQUIVALENT OF 9968 PROCEEDS OF THE ISSUE WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9304010012 930401 TECHNOLOGY NEC TO BEGIN SELLING A PARALLEL COMPUTER FOR SOFTWARE RESEARCH TOKYO AP NEC CORP SAID IT WILL BEGIN MARKETING ITS FIRST COMMERCIAL PARALLEL COMPUTER THE CENJU3 DESIGNED PRIMARILY FOR SOFTWARE RESEARCHERS MOST COMPUTERS USE A SINGLE PROCESSOR OR BRAIN THAT HANDLES VARIOUS PARTS OF A PROBLEM IN SEQUENCE PARALLEL COMPUTERS SEEK TO INCREASE COMPUTING SPEED BY LINKING DOZENS OR EVEN THOUSANDS OF PROCESSORS SO THEY CAN WORK ON SEPARATE PORTIONS OF A PROBLEM SIMULTANEOUSLY ALTHOUGH PARALLEL COMPUTERS ARE AVAILABLE FROM A GROWING NUMBER OF MAKERS SOFTWARE THAT CAN FULLY TAKE ADVANTAGE OF THEIR CAPABILITIES IS DIFFICULT TO DEVELOP AN NEC SPOKESMAN SAID THE CENJU3 IS MAINLY A RESEARCH TOOL FOR CREATING SOFTWARE FOR PARALLEL COMPUTING SO WHEN WE DO BRING OUT MUCH LARGER PARALLEL MACHINES IN THE NEXT FEW YEARS THERE WILL BE APPLICATIONS FOR THEM THE COMPUTER WILL BE AVAILABLE IN SEVEN MODELS RANGING FROM EIGHT TO 256 PROCESSORS WITH LEASING FEES STARTING AT 10400 A MONTH THE SPOKESMAN SAID NEC SAID THE MOST EXPENSIVE VERSION OF THE COMPUTER WHICH IT WILL BEGIN SHIPPING OVERSEAS IN 1994 IS CAPABLE OF AS MUCH AS 128 GIGAFLOPS OR 128 BILLION FLOATING OPERATIONS A SECOND A STANDARD MEASURE OF COMPUTER SPEED IN COMPARISON NEC SAYS ITS TOP SX3 44R SUPERCOMPUTER INTRODUCED LAST YEAR HAS A COMPUTATION SPEED OF 256 GIGAFLOPS IT LEASES FOR 224000 TO 862000 A MONTH JAPANESE RIVAL FUJITSU LTD MAKES A PARALLEL COMPUTER CALLED AP1000 WHICH HAS BETWEEN 64 AND 1224 PROCESSORS SEVERAL US COMPANIES INCLUDING THINKING MACHINES CORP INTEL CORP AND NCUBE CORP ALSO HAVE UNVEILED PARALLEL COMPUTERS 9304010011 930401 MEDICINE SIMILAR DRUGS VARY IN EFFECT ON WELLBEING BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MEDICAL RESEARCHERS FOUND THAT PATIENTS TAKING BRISTOLMYERS SQUIBB CO'S PRESCRIPTION DRUG CAPOTEN FOR HIGH BLOOD PRESSURE FEEL BETTER THAN THOSE TAKING MERCK & CO'S VASOTEC A SURPRISING RESULT EXPECTED TO INTENSIFY ONE OF THE MOST COMPETITIVE FIGHTS IN THE DRUG INDUSTRY THE FINDINGS ARE UNEXPECTED BECAUSE THE TWO DRUGS ARE CHEMICALLY SIMILAR AND HAVE BEEN CONSIDERED VIRTUALLY IDENTICAL IN THEIR ABILITY TO LOWER BLOOD PRESSURE AND IN THEIR SIDE EFFECTS BUT TEST PATIENTS TAKING THE DRUGS SHOWED A MARKED DIFFERENCE IN VITALITY SLEEPING PROBLEMS DEPRESSION AND OTHER QUALITYOFLIFE MEASURES THE STUDY IS EXPECTED TO ADD A NEW DIMENSION TO THE MARKETING BATTLE OVER THE POPULAR DRUGS WHICH HAD COMBINED WORLDWIDE SALES OF 37 BILLION LAST YEAR OF THAT MERCK'S VASOTEC ACCOUNTED FOR AN ESTIMATED 2 BILLION ASSESSING A PRESCRIPTION DRUG'S EFFECT ON THE PATIENT'S SENSE OF WELLBEING BY ASKING THE PATIENT DIRECTLY IS A RELATIVELY NEW APPROACH TO EVALUATING MEDICAL THERAPIES USUALLY A PHARMACEUTICAL COMPANY NEEDS ONLY TO PROVE TO THE GOVERNMENT AND PHYSICIANS THAT A DRUG IS BIOLOGICALLY SAFE AND EFFECTIVE BUT INCREASINGLY BIG INSTITUTIONAL BUYERS SUCH AS HEALTHMAINTENANCE ORGANIZATIONS ALSO WANT TO KNOW THAT THE DRUGS MAKE PATIENTS FEEL BETTER NOT WORSE WE CONSIDER QUALITY OF LIFE AS SERIOUSLY AS SAFETY AND EFFICACY SAID HENRY F BLISSENBACH PRESIDENT OF DIVERSIFIED PHARMACEUTICAL SERVICES BLOOMINGTON MINN WHICH RUNS PRESCRIPTIONDRUG PROGRAMS FOR HEALTH PLANS COVERING MORE THAN NINE MILLION PATIENTS THE CAPOTEN/VASOTEC STUDY PUBLISHED IN THIS WEEK'S NEW ENGLAND JOURNAL OF MEDICINE IS LIKELY TO PROMPT A REVIEW OF THE DRUGS BY THE ORGANIZATION'S 75 THERAPEUTIC COMMITTEES HE ADDED BUT JOHN POWELL MERCK VICE PRESIDENT OF CLINICAL RESEARCH SAID THAT MORE THAN TWO MILLION PATIENTS NOW RECEIVE VASOTEC AND THAT THERE HAVEN'T BEEN ANY REPORTS OF THE DRUG WORSENING THEIR QUALITY OF LIFE MOREOVER HE SAID THE CHANGES MEASURED IN THE STUDY ARE VERY SMALL AND IT'S VIRTUALLY IMPOSSIBLE TO MAKE CONCLUSIONS ABOUT QUALITY OF LIFE FROM THEM BRISTOLMYERS PROVIDED ABOUT 2 MILLION TO PAY FOR THE STUDY'S DRUG AND PHYSICIAN FEES A COMPANY SPOKESMAN SAID BRISTOLMYERS WOULD DISTRIBUTE THE STUDY TO ITS SALES REPRESENTATIVES BUT DIDN'T HAVE IMMEDIATE PLANS TO APPROACH MANAGEDCARE GROUPS BUT THE COMPANY DIDN'T HAVE ANY CONTROL OVER THE STUDY SAID MARCIA A TESTA OF THE HARVARD SCHOOL OF PUBLIC HEALTH THE LEAD RESEARCHER IN THE STUDY AND THE ANALYSIS OF THE DATA WAS PAID FOR BY A FEDERAL GRANT DR TESTA ALSO ARGUED THAT THE DIFFERENCES FOUND IN THE STUDY ARE MEANINGFUL MANY DRUG COMPANIES ARE BEGINNING TO USE QUALITYOFLIFE STUDIES TO MAKE AN ECONOMIC CASE FOR THEIR DRUGS PATIENTS WHO FEEL WORSE AFTER TAKING A BLOODPRESSURE DRUG MIGHT STOP TAKING IT AND COST THE HEALTHCARE SYSTEM FAR MORE LATER IF THEY DEVELOP HEART DISEASE OR SUFFER A STROKE MEASURING QUALITY OF LIFE HAS GONE FROM FLUFF AND SUBJECTIVITY TO METHODS THAT ARE EQUALLY SCIENTIFICALLY VALID AS THOSE TO MEASURE SAFETY AND EFFICACY SAID JOHN WARE A SENIOR SCIENTIST AT THE HEALTH INSTITUTE AT NEW ENGLAND MEDICAL CENTER HOSPITALS IN BOSTON WE CAN MEASURE WELLBEING WITH EQUAL VALIDITY AS BLOOD PRESSURE OR THE SIZE OF A TUMOR IN THE STUDY 379 MEN WITH MILD TO MODERATELY SEVERE HIGH BLOOD PRESSURE WERE GIVEN EITHER CAPOTEN OR VASOTEC FOR 24 WEEKS NEITHER THE PATIENT NOR THE PHYSICIAN KNEW WHICH DRUG WAS BEING ADMINISTERED AND BOTH GROUPS WERE SIMILAR IN BLOODPRESSURE LEVELS AND IN THEIR QUALITYOFLIFE ASSESSMENTS AT THE START OF THE STUDY QUALITY OF LIFE WAS MEASURED WITH A QUESTIONNAIRE CONTAINING 115 ITEMS COVERING AREAS SUCH AS VITALITY GENERAL HEALTH STATUS SLEEP DISTURBANCE LIFE SATISFACTION ANXIETY AND DEPRESSION AT THE END OF THE STUDY THESE MEASURES EDGED UP ON AVERAGE FOR PATIENTS TAKING CAPOTEN BUT FELL ON AVERAGE FOR THOSE ON VASOTEC THOSE PATIENTS WHO STARTED WITH A LOW QUALITYOFLIFE MEASURE GENERALLY REMAINED STABLE OR IMPROVED WITH EITHER DRUG BUT PATIENTS WITH A HIGHER INITIAL QUALITYOFLIFE ASSESSMENT GENERALLY WORSENED WITH VASOTEC AND REMAINED STABLE WITH CAPOTEN THE DIFFERENCES ALSO SHOWED UP WITHIN CATEGORIES PATIENTS ON CAPOTEN REPORTED IMPROVEMENT IN VITALITY SLEEP DISTURBANCES DEPRESSION AND CONTROL OVER EMOTIONS WHILE THOSE ON VASOTEC REPORTED FEELING WORSE IN THOSE AREAS A MAJOR PROBLEM WITH SOME QUALITYOFLIFE STUDIES IS A LACK OF CONTEXT FOR THE RESULTS SAID DR TESTA SHE AND HER FELLOW RESEARCHERS CALIBRATED THEIR RESULTS TO COMPARE CHANGES IN QUALITY OF LIFE WITH REALLIFE EVENTS THE DECREASE EXPERIENCED BY VASOTEC PATIENTS IS THE EQUIVALENT TO EXPERIENCING A MORTGAGE FORECLOSURE MAJOR CHANGE IN WORK RESPONSIBILITIES OR INLAW TROUBLES THE RESEARCHERS FOUND THE DETERIORATION EXPERIENCED BY VASOTEC PATIENTS MAY REFLECT A NORMAL DECLINE FROM AGING NOT A NEGATIVE EFFECT CAUSED BY THE DRUG DR TESTA SAID BUT THAT WOULDN'T EXPLAIN THE IMPROVEMENT EXPERIENCED BY CAPOTEN PATIENTS IT'S POSSIBLE CAPOTEN AFFECTS CHEMICALS IN THE BRAIN THAT MAKE PEOPLE FEEL BETTER SHE SAID 9304010010 930401 TECHNOLOGY PACIFIC TELESIS PLANS COMPUTER NETWORK FOR CALIFORNIA AREAS SAN FRANCISCO PACIFIC BELL SAID IT PLANS TO BUILD A COMMUNICATIONS SUPERHIGHWAY CONNECTING PARTICIPATING UNIVERSITIES RESEARCH LABS HOSPITALS AND HIGHTECH FIRMS AROUND SAN FRANCISCO AND LOS ANGELES THE COMPANY THE LOCAL TELEPHONE OPERATING COMPANY FOR PACIFIC TELESIS GROUP PLANS TO INVEST ABOUT 35 MILLION IN THE NETWORK AND AT LEAST 10 MILLION IN A NONPROFIT ORGANIZATION TO FUND FREE ACCESS TO THE NETWORK FOR USERS WHO DEVELOP INNOVATIVE APPLICATIONS OF THE NETWORK THE PROJECT WILL USE NEW COMMUNICATIONS SWITCHING AND TRANSMISSION TECHNOLOGIES IN A TELECOMMUNICATIONS NETWORK CAPABLE OF TRANSMITTING VOICE DATA VIDEO AND IMAGES AT THE SAME TIME AMONG THE SERVICES THE NETWORK WILL OFFER ARE TELESEMINARS WHICH ALLOW PARTICIPANTS TO TAKE PART IN EDUCATIONAL PROGRAMS FROM THEIR OFFICES VIRTUAL CONSORTIUMS WHERE BUSINESS PEOPLE STUDENTS AND SCIENTISTS FROM DIFFERENT GEOGRAPHIC AREAS WORK TOGETHER TO SOLVE COMPLEX PROBLEMS AND ACCESS TO DIFFERENT DATABASES THE PROJECT WILL BRING TOGETHER AS MANY AS 80 EDUCATIONAL MEDICAL AND HIGHTECH INDUSTRIAL ORGANIZATIONS IN THE SAN FRANCISCO BAY AREA AND A LIKE NUMBER IN LOS ANGELES PARTICIPANTS AGREE TO DEVELOP AND PILOT ADVANCED TELECOMMUNICATIONS INFORMATION TECHNOLOGIES AND APPLICATIONS OVER TWO YEARS TO IMPROVE THE QUALITY OF LIFE IN CALIFORNIA THE COMPANY PLANS TO BEGIN OFFERING A FULL SET OF SERVICES BY YEAR'S END IN THE BAY AREA AND EARLY NEXT YEAR IN LOS ANGELES MANY OF THE SERVICES ARE AVAILABLE ON A LIMITED BASIS FROM PACIFIC BELL NOW THE FULL COST OF THE PROJECT WILL BE PAID BY COMMERCIAL USERS AND THROUGH FUNDING BY THE NONPROFIT ORGANIZATION 9304010009 930401 TEXTRON WILL ACQUIRE PLASTICS OPERATIONS OF CHRYSLER DIVISION PROVIDENCE RI TEXTRON INC EXPANDING ITS AUTO PARTS BUSINESS AGREED TO BUY THE PLASTICS OPERATIONS OF CHRYSLER CORP'S ACUSTAR DIVISION FOR 138 MILLION IN CASH WITH THE ACQUISITION TEXTRON'S AUTOMOTIVE SALES WILL EXCEED 12 BILLION ANNUALLY UP FROM MORE THAN 900 MILLION IN 1992 THE INDUSTRIAL AND FINANCIAL SERVICES COMPANY HAD TOTAL REVENUE OF 835 BILLION LAST YEAR THE ACUSTAR BUSINESSES TEXTRON IS BUYING INCLUDE FOUR MANUFACTURING PLANTS THREE IN THE US AND ONE IN CANADA THAT MAKE PLASTIC MOLDED INTERIOR AND EXTERIOR TRIM PARTS AND SUBASSEMBLIES FOR CHRYSLER CARS AND LIGHT TRUCKS THE UNITS BEING ACQUIRED ARE EVART PRODUCTS CO MACDONALD MOLDING INC RANTOUL PRODUCTS INC AND GUELPH PRODUCTS THE OPERATIONS EMPLOY ABOUT 2300 PEOPLE THE ACQUISITION INCLUDES A LONGTERM SUPPLY ARRANGEMENT UNDER WHICH CHRYSLER WILL BE THE EXCLUSIVE BUYER OF PRODUCTS MADE BY THE OPERATIONS AS WELL AS OTHER AUTOMOTIVE PRODUCTS MADE BY TEXTRON CHRYSLER SAID THE SALE OF ITS ACUSTAR PLASTICS BUSINESSES IS PART OF ITS CONTINUING EFFORT TO FOCUS ON CORE AUTOMOTIVE OPERATIONS AND TO RAISE CASH TO DEVELOP NEW PRODUCTS HOWEVER THE PLASTICS OPERATIONS ARE ONLY A PIECE OF A MUCH LARGER GROUP COMPRISING UNITS THAT MAKE ELECTRICAL ELECTRONIC GLASS WIRING AND THERMAL COMPONENTS CHRYSLER TRIED TO SELL ALL OF ACUSTAR NEARLY FIVE YEARS AGO BUT SHELVED THE EFFORT BECAUSE OF STRONG UNION OPPOSITION TEXTRON SAID THE ACQUIRED OPERATIONS WILL FUNCTION AS A SEPARATE DIVISION IN ITS COMMERCIAL PRODUCTS SECTOR THE TRANSACTION IS SCHEDULED TO CLOSE IN EARLY MAY AND IS SUBJECT TO REGULATORY APPROVALS IN THE US AND CANADA 9304010007 930401 TECHNOLOGY & HEALTH FDA PANEL FINDS HORMONE SAFE FOR MILK BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATION'S MILK SUPPLY WOULDN'T BE HARMED BY TREATING COWS WITH MONSANTO CO'S GENETICALLY ALTERED GROWTH HORMONE A FOOD AND DRUG ADMINISTRATION ADVISORY PANEL DETERMINED THE VETERINARY MEDICINE ADVISORY COMMITTEE CONCLUDED THAT THE BOVINE GROWTH HORMONE WHICH BOOSTS MILK PRODUCTION SUBSTANTIALLY WILL INCREASE THE INCIDENCE OF MASTITIS AN INFLAMMATION OF THE UDDER IN COWS THE COMMITTEE ACKNOWLEDGED THAT EFFORTS TO FIGHT THE DISEASE COULD RESULT IN SIGNIFICANTLY HIGHER QUANTITIES OF ANTIBIOTICS IN MILK BUT SAID SUCH A RISE WOULD PRESENT AN INSIGNIFICANT RISK TO HUMAN HEALTH YESTERDAY'S DECISION INCREASES THE LIKELIHOOD THAT THE FDA WILL APPROVE THE HORMONE KNOWN AS BGH THE AGENCY GENERALLY FOLLOWS THE ADVICE OF ITS ADVISORY PANELS THOMAS MCDERMOTT A SPOKESMAN FOR MONSANTO SAID WE'RE VERY PLEASED THAT SOUND SCIENCE PREVAILED AND NOW WE AWAIT FDA'S DECISION ON APPROVAL THE COMMITTEE'S ACTION ALSO INCREASES THE CHANCES FOR EVENTUAL FDA APPROVAL FOR SIMILAR HORMONES PRODUCED BY AMERICAN CYANAMID CO UPJOHN CO AND ELI LILLY & CO THE PANEL DEALT ONLY WITH THE MONSANTO PRODUCT YESTERDAY HOWEVER AND THE OTHER COMPANIES MUST GO THROUGH THE SAME PROCESS KEEPING ITS BGH OPERATIONS IN A STATE OF READINESS WHILE AWAITING REGULATORY APPROVAL HAS BEEN AN EXPENSIVE PROPOSITION FOR MONSANTO LAST YEAR MONSANTO TOOK A 30 MILLION CHARGE AGAINST EARNINGS FOR THE WRITEDOWN OF CERTAIN BGH INVENTORIES BECAUSE OF EXPIRATION OF THE SHELF LIFE SAYS THE COMPANY'S JUSTISSUED ANNUAL REPORT APPROVAL OF THE HORMONE ISN'T ASSURED HOWEVER GIVEN THAT THE CLINTON ADMINISTRATION IS TAKING A MORE CAUTIOUS APPROACH TO BIOTECHNOLOGY THAN THE BUSH ADMINISTRATION AND THAT CONSUMER GROUPS ARE WAGING AN ACTIVE CAMPAIGN AGAINST THE PRODUCT GERALD GUEST DIRECTOR OF THE FDA'S CENTER FOR VETERINARY MEDICINE SAID THE PROCESS IS NOT YET COMPLETE ANALYSTS SAY FARMERS AND COMPANIES THAT USE MILK PRODUCTS ARE SHYING AWAY FROM BGH IN LIGHT OF THE CONSUMER CONCERNS WE'VE MADE A COMMITMENT TO ENSURE THE SUPPLY OF MILK AND CREAM WILL NOT COME FROM COWS TREATED BY BGH SAID ALAN PARKER SPOKESMAN FOR BEN & JERRY'S HOMEMADE INC AN ICE CREAM COMPANY BASED IN WATERBURY VT THE NATIONAL DAIRY BOARD AN INDUSTRY GROUP SAID ITS LATEST SURVEY SHOWS THAT THE PUBLIC IS EXTREMELY WARY OF GENETICALLY ALTERED FOOD PRODUCTS MORE THAN 50 OF THOSE POLLED SAID TREATING COWS WITH BGH TO INCREASE MILK OUTPUT WOULD BE A POOR IDEA AND WOULD MAKE THE MILK UNSAFE THE NATION ALREADY HAS A SIGNIFICANT MILK SURPLUS THAT CONSUMER GROUPS ARGUE MAKES BGH UNNECESSARY THE GROUPS ALSO SAY THAT YESTERDAY'S COMMITTEE LACKED THE SCIENTIFIC DATA TO ANSWER WHETHER ANTIBIOTIC RESIDUE IN MILK POSES A HUMAN HEALTH HAZARD ANTIBIOTIC RESIDUES COULD AFFECT PEOPLE ALLERGIC TO ANTIBIOTICS CRITICS CONTEND AS WELL AS BUILD UP RESISTANCE AMONG ALL MILK DRINKERS TO ANTIBIOTICS USED TO TREAT SUCH DISEASES AS SALMONELLA PANEL MEMBERS AGREED AND EXPRESSSED INTEREST IN RECEIVING MORE DATA FDA COMMISSIONER DAVID KESSLER WHO SAT IN ON THE PUBLIC HEARING CHALLENGED MONSANTO OVER THE LACK OF DATA ON ANTIBIOTIC RESIDUE IN MILK DESPITE THESE CONCERNS THE COMMITTEE CONCLUDED THAT THE GOVERNMENT'S MILK MONITORING SYSTEM WOULD CATCH ANY RESIDUE BUILDUP A SENIOR CLINTON ADMINISTRATION OFFICIAL HAS SAID THE WHITE HOUSE WOULD DEFER TO THE FDA'S DETERMINATION OF WHETHER BGH IS SAFE BUT HE SAID THE ADMINISTRATION WOULD LOOK AT WHETHER MILK SHOULD BE LABELED AS COMING FROM COWS THAT HAD BEEN INJECTED WITH THE HORMONE SCOTT MCMURRAY IN CHICAGO CONTRIBUTED TO THIS ARTICLE 9304010006 930401 UNDIVIDED ATTENTION HOW PEPSICO GETS WORK OUT OF PEOPLE IT HAS HIRED A CONCIERGE' TO DO HELPFUL PERSONAL CHORES THAT CAN BE SO DISTRACTING BY JULIE AMPARANO LOPEZ STAFF REPORTER OF THE WALL STREET JOURNAL PURCHASE NY THE SUN IS JUST RISING OVER PEPSICO INC'S SPRAWLING 144ACRE HEADQUARTERS CAMPUS HERE AND ANDY KING ALREADY IS FRANTIC ATTEMPTING TO SWEAT AWAY A LITTLE POUNDAGE ON A TREADMILL IN THE COMPANY FITNESS CENTER MR KING KEEPS GETTING INTERRUPTED BY ANXIOUS EXECUTIVES WITH URGENT NEED OF HIS SERVICES ONE ASKS HIM TO HAVE A CHICKEN RECIPE ON HIS DESK BEFORE THE CLOSE OF BUSINESS ANOTHER APPROACHES HIM ABOUT PLANNING A WEDDINGANNIVERSARY GETAWAY SUCH FAVORS MIGHT SEEM BEYOND THE CALL OF DUTY IN A CORPORATE WORLD IN WHICH YOU CAN'T EVEN FIND ANYBODY WILLING TO MAKE COFFEE BUT DOING THESE SPECIAL LITTLE THINGS FOR BUSY PEPSICO PEOPLE IS WHAT MR KING DOES FOR A LIVING HE IS A CONCIERGE APPARENTLY THE FIRST CORPORATE CONCIERGE IN AMERICA THE HEAD PORTER OF A BIG COMPANY THAT HAS DECIDED IT IS A GOOD IDEA TO HAVE SOMEBODY ON THE PAYROLL MINDING OTHER WORKERS' PERSONAL BUSINESS SO THEY CAN KEEP THEIR MINDS ON THEIR WORK MR KING WHO IS 31 YEARS OLD DOES WHAT HOUSEWIVES TRADITIONALLY DID BEFORE THEY GOT JOBS OUTSIDE THE HOME HE DOES WHAT SECRETARIES DID WHEN THERE STILL WERE SECRETARIES BUT HE DOESN'T GO OUT ON LITTLE SHOPPING TRIPS AND HE DOESN'T WRAP CHRISTMAS PRESENTS FOR THE BOSS'S WIFE MR KING A FORMER HEADHUNTER HAS BEEN AT THIS AT PEPSICO FOR A YEAR AND MAY BE THE BEGINNING OF A TREND AT LEAST HE IS THE PROTOTYPE HE WILL HIRE A BABY ELEPHANT FOR A CHILD'S BIRTHDAY PARTY HE HASN'T DONE THAT MIND YOU BUT HE WILL IF ASKED HE HIRES NANNIES AND SITTERS FOR SETTERS HE WILL GET YOU A SEAMSTRESS OR ARRANGE TO HAVE YOUR ROOF FIXED HE WILL GET THE OIL CHANGED IN YOUR CAR WHILE YOU KEEP YOUR EYE ON THE PEPSICO BALL HIS SERVICES ARE AVAILABLE TO ALL 800 EMPLOYEES AT HEADQUARTERS FROM BOARDROOM TO MAILROOM HE HAS A VERY GOOD DATABASE I'M SORT OF A LIFESAVER HE SAYS I HELP PEOPLE WITH THOSE BURDENSOME LITTLE CHORES WORKING FROM THE SOCALLED RESOURCE CENTER A CRAMPED BASEMENTLEVEL OFFICE NEXT TO THE COMPANY CAFETERIA MR KING AND HIS ASSISTANT BART WILDER FIELD CALLS ALL DAY LONG DURING ONE LUNCH HOUR COMPUTER ANALYST ROBIN BRINDLEY IS DESPERATELY SEEKING AN UNUSUAL ANNIVERSARY GIFT FOR HER PARENTS MR KING WHIRLS IN HIS CHAIR AND TAPS INTO HIS COMPUTER HOW ABOUT A BALLOON RIDE OVER THE HUDSON HE WONDERS HE PRODUCES A LIST OF FOUR COMPANIES THAT CAN SUPPLY ONE MEANWHILE A QUIET WOMAN OF MATURE YEARS A SUPERVISOR FROM MAIL SERVICES WAITS HER TURN GOT ANY ROCK CONCERT TICKETS FOR THE WEEKEND CAROLYN YOUNGBERG ASKS BUT OF COURSE THE GRATEFUL DEAD AND PRINCE ARE BOTH IN NEW YORK SHE DECIDES AGAINST IT MR KING'S CONCIERGE SERVICE FIELDS MORE THAN 20 REQUESTS A DAY MOSTLY THEY HAVE TO DO WITH RESTAURANT RESERVATIONS THEATER TICKETS EVENTS FOR CHILDREN HOUSEHOLD REPAIRS AND CONSUMER PROBLEMS EVERYTHING IS URGENT IT CAN BE VERY STRESSFUL SAYS THE EFFERVESCENT MR KING WHO WON'T SAY HOW MUCH HE IS PAID TO DO SO MUCH FOR SO MANY ADDS MR WILDER PEOPLE WANT INFORMATION IMMEDIATELY PEPSICO EMBRACED THIS ULTIMATE EMPLOYEEBENEFIT FRILL LAST SPRING AFTER A COMPANY SURVEY SHOWED THAT EMPLOYEES WERE STRESSED OUT AND HAD NO FREE TIME FOR PERSONAL ERRANDS THERE'S NO MORE HOMEMAKER TO TAKE CARE OF DAYTODAY DUTIES EXPLAINS RONNIE MILLER HASDAY VICE PRESIDENT OF CORPORATE PERSONNEL SHE HELPED SET UP THE CONCIERGE SERVICE AFTER PERSONNEL CONSULTANTS TOWERS PERRIN SUGGESTED IT ACTUALLY THE TWO COMPANIES HAD BEEN WORKING ON SOMETHING LIKE THIS FOR TWO YEARS BUT THEY WERE HAVING TROUBLE FINDING THE RIGHT MAN FOR THE JOB OF COMPANY HOUSEWIFE SOMEONE WHO TRULY KNOWS HIS ONIONS MR KING INCIDENTALLY IS WRITING A COOKBOOK FOR BACHELORS FINALLY MANHATTAN INTELLIGENCE A NEW YORK DATABASE COMPANY THAT PROVIDES INFORMATION ABOUT THE NEW YORK AREA FILLED THE INFORMATION GAP NOW THE THREE COMPANIES ARE GETTING TOGETHER TO MARKET A CONCIERGE SERVICE TO OTHER CORPORATIONS UNDER THE CUTE NAME XTRA OURS WE THINK TIME WILL BE THE BENEFIT OF THE FUTURE EXPLAINS MARGARET REGAN A TOWERS PERRIN PRINCIPAL RATHER MYSTICALLY BUT THERE IS NOTHING PARTICULARLY ALTRUISTIC ABOUT THE CORPORATE CONCIERGE NOT ONLY CAN IT BE MARKETED EVEN FRANCHISED LIKE KENTUCKY FRIED CHICKEN IT IS A THEORETICAL BOON TO PRODUCTIVITY BY REDUCING ABSENTEEISM BY LIMITING THE AMOUNT OF TIME ON THE JOB THAT EMPLOYEES DEVOTE TO PERSONAL AFFAIRS WE'RE IN A PEOPLEINTENSIVE BUSINESS EXPLAINS KEN CARRIG A PEPSICO EMPLOYEESERVICES MANAGER AND PHRASE MAKER WE NEED TO ENSURE THAT WE REMAIN AN EMPLOYER OF CHOICE SOME PEPSICO EMPLOYEES HOWEVER FEEL THE SERVICE IS AT LEAST IN PART A CORPORATE PLOT TO SQUEEZE MORE WORK OUT OF THEM ONE WORKER WHO WISHES TO REMAIN ANONYMOUS SAYS SHE LOVED THE SERVICE AT FIRST BUT NOW FRETS THAT HER BOSS PUSHES HER TO DELEGATE MORE OF HER PERSONAL CHORES TO THE CONCIERGE YOU FEEL CHAINED TO YOUR DESK SHE COMPLAINS THE CONCIERGE ALSO GETS TO KNOW A LOT ABOUT PEOPLE'S PERSONAL LIVES WHICH COULD SEEM TO BE AN INVASION OF PRIVACY IF ONE WANTED TO BE PARANOID ABOUT IT BUT AT PEPSICO THE CONCIERGE CLEARLY IS A HIT AND NAYSAYERS ARE HARD TO FIND THE PAMPERING HAS BEEN INTENSE THE COMPANY PERSUADED A DRY CLEANER TO OPEN A SHOP RIGHT HERE IN THE HEADQUARTERS BUILDING TWICE A MONTH A MOBILE LUBE TRAILER COMES TO THE PEPSICO PARKING LOT AND CHANGES OIL AND FILTERS WHILE EMPLOYEES WORK A SHOESHINE MAN ROAMS THE CORRIDORS ON TUESDAYS AND FRIDAYS NONE OF THIS IS FREE A SHINE COSTS 2 AN OILCHANGE ABOUT 20 EASY ACCESS IS WHAT MAKES IT ALL SO APPEALING AT 430 EVERY AFTERNOON TOWARD THE END OF THE 9TO5 DAY MOST PEOPLE WORK HERE THE CAFETERIA IS TRANSFORMED INTO A MARKETPLACE AND SELLS TAKEHOME DINNERS TO EMPLOYEES TOO POOPED TO COOK ONE RECENT DAY THE SPECIAL WAS CORNISH HENS WITH WILD RICE AT 350 PER SERVING PEPSICO IS DISCOVERING THAT EMPLOYEES HOOKED ON ALL THIS PERSONAL SERVICE TEND TO BE INSATIABLE THEY WANT MORE AND MORE PEOPLE ARE ASKING FOR STUFF TO BE BROUGHT TO THEIR DESKS CLEANING TICKETS DINNER SOME ARE REQUESTING MANICURES AND HAIRCUTS THEY WANT THEIR CARS WASHED PEPSICO TRYING TO ACCOMMODATE SOME OF THIS DEMAND LAST MONTH BROUGHT IN A SHOEREPAIR SERVICE NEXT MONTH THE TAILOR IS COMING ROSEANN PROSSER A PEPSICO FACILITY PLANNER WHILE PICKING UP A LOAF OF BREAD AND A HALFGALLON OF MILK AT THE COMPANY STORE BUMPS INTO MR CARRIG THE EMPLOYEESERVICES MANAGER SAYS SHE ANY CHANCE OF GETTING A GAS PUMP HERE IT'S SUCH A HASSLE SAYS HE SHAKING HIS HEAD MAYBE ONE DAY AS FOR MR KING HE WILL TRY TO DO JUST ABOUT ANY HELPFUL THING THAT ISN'T ILLEGAL OR THAT ISN'T SPONSORED BY COCACOLA A WOMAN WANTS TO HIRE A MASSEUSE FOR HER HUSBAND BUT DOESN'T KNOW HOW TO FIND SOMEONE HOW SHALL WE PUT IT LEGITIMATE MR KING IS A RESOURCEFUL FELLOW AND HE HAS THAT DATABASE HE FINDS AN ARRAY OF PRACTITIONERS OFFERING VARIOUS TYPES OF THERAPEUTIC MASSAGE MR KING COULD PROBABLY USE A GOOD BACK RUB HIMSELF THE STEADY STREAM OF REQUESTS LEAVES HIM WITH LITTLE SPARE TIME OF HIS OWN OFTEN HE AND HIS ASSISTANT SUBSIST ON SANDWICHES EATEN ON THE RUN AND MOST NIGHTS THEY TAKE WORK HOME WHAT THEY BOTH SEEM TO NEED IS SOMEONE TO TAKE CARE OF THOSE LITTLE PERSONAL THINGS THEIR WORK NEVER LEAVES THEM TIME TO DO 9304010005 930401 ABREAST OF THE MARKET STOCKS FALL 2216 ON SELLING TIED TO QUARTER'S END ECONOMIC FEARS BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ANXIETY ABOUT THE ECONOMY AND INTEREST RATES AND A LATE WAVE OF SELLING TIED TO OPTIONS EXPIRATIONS LEFT STOCK PRICES MOSTLY LOWER AFTER HOLDING SLIM GAINS DURING MOST OF THE SESSION PRICES TURNED SHARPLY LOWER IN THE FINAL HOUR OF TRADING THE DOW JONES INDUSTRIAL AVERAGE ENDED WITH A LOSS OF 2216 TO 343511 TRADERS SAID EXPIRATION OF STOCKINDEX OPTIONS THAT BEGAN TRADING ON THE AMERICAN STOCK EXCHANGE AND CHICAGO BOARD OPTIONS EXCHANGE IN FEBRUARY TRIGGERED LATE SELLING BUT DAVID HALL CBOE VICE PRESIDENT IN CHARGE OF INSTITUTIONAL MARKETING SAID UNWINDING OF POSITIONS IN OVERTHECOUNTER OPTIONS AND OTHER SELLING STRATEGIES RELATED TO THE QUARTER'S END WERE RESPONSIBLE FOR MUCH OF THE LOSSES OTC OPTIONS AREN'T LISTED ON AN EXCHANGE THEY ARE CREATED BY SECURITIES FIRMS AND SOLD DIRECTLY TO CLIENTS MEANWHILE MICHAEL METZ A MARKET STRATEGIST AT OPPENHEIMER & CO SAID ADDITIONAL SELLING WAS TIED TO WORRIES ABOUT THE DIRECTION OF THE ECONOMY AND ABOUT A SLIDE IN THE BOND MARKET THE STANDARD & POOR'S 500STOCK INDEX LOST 030 TO 45167 BUT THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED UP 024 TO 24942 AND THE DOW JONES EQUITY MARKET INDEX ADDED 001 TO 42908 VOLUME ON THE BIG BOARD ROSE TO 275710000 SHARES FROM 230330000 TUESDAY ADVANCING ISSUES LED DECLINERS 1161 TO 729 LONGTERM TREASURY SECURITIES FELL 1/4 POINT LIFTING THE YIELD ON THE 30YEAR TREASURY TO 693 RENEWED FEARS ABOUT INFLATION AND ABOUT AN UPTURN IN INTEREST RATES ARE STARTING TO GRIP INVESTORS SAID MR METZ THIS IS PART OF THE TOPPING OUT PROCESS I THINK THIS IS SELL TIME HE SAID MR METZ SAID HE EXPECTS A SUSTAINED ERRATIC DRIFT DOWNWARD FOR MOST OF THE SECOND QUARTER THAT SLIDE HE SAID COULD WIPE 8 OFF THE VALUE OF MAJOR MARKET INDEXES THE COMMERCE DEPARTMENT YESTERDAY RELEASED A SLIGHTLY WEAKERTHANEXPECTED REPORT ON ITS INDEX OF LEADING ECONOMIC INDICATORS THE INDEX ROSE BY 05 IN FEBRUARY ANALYSTS HAD FORECAST A GAIN OF 06 TRADERS SAID THE DATA HAD A LIMITED EFFECT ON STOCKS MOST ATTENTION IS LOCKED ON FRIDAY'S SCHEDULED RELEASE OF FIGURES ON MARCH EMPLOYMENT LEVELS TIM HEEKIN HEAD OF BLOCK TRADING AT SALOMON BROTHERS SAID RUMORS THAT THE REPORT WILL BE POOR CONTRIBUTED TO YESTERDAY'S SELLING ALL THESE CONCERNS LEFT CYCLICAL STOCKS AMONG THE SESSION'S DECLINERS INTERNATIONAL PAPER FELL 3/4 TO 62 1/2 CATERPILLAR DROPPED 1 1/8 TO 59 1/8 ALUMINUM CO OF AMERICA FELL 1 1/4 TO 64 1/2 AND GENERAL MOTORS LOST 1/2 TO 37 5/8 MEDICAL STOCKS HELPED BUOY THE MARKET EARLY IN THE SESSION AS INVESTORS REACTED TO COMMENTS TUESDAY BY A TOP CLINTON ADMINISTRATION HEALTHCARE ADVISER WHICH SUGGESTED TO SOME INVESTORS THAT THE ADMINISTRATION IS TURNING AWAY FROM THE IDEA OF IMPOSING CONTROLS ON MEDICAL PRICES BUT BY LATE IN THE DAY THE GROUP WAS MIXED AND MANY DRUG ISSUES FINISHED LOWER MERCK & CO LOST 1/2 TO 35 3/8 PFIZER FELL 5/8 TO 62 1/4 AND BRISTOLMYERS SQUIBB DECLINED 5/8 TO 59 1/8 THE STOCK OF HUMANA A HOSPITAL COMPANY THOUGH WAS UP 1/8 TO 7 7/8 AND SHARES OF FOUNDATION HEALTH A MANAGED CARE COMPANY ROSE 1 3/4 TO 30 GTECH HOLDINGS CLIMBED 3 1/2 TO 34 7/8 ON NEWS THAT CALIFORNIA GOV PETE WILSON WON'T INTERVENE ON BEHALF OF A GTECH RIVAL THAT CLAIMED THE STATE'S BIDDING PROCESS FOR NEW LOTTERY EQUIPMENT WAS UNFAIR GTECH WHICH MADE THE ONLY BID FOR THE 250 MILLION LOTTERY PACT IS EXPECTED TO WIN THE CONTRACT SHARES OF VIDEO LOTTERY TECHNOLOGIES WHICH RAISED THE COMPLAINT EASED 1/4 TO 13 1/4 IN OVERTHECOUNTER TRADING AG EDWARDS JUMPED 3/4 TO 27 1/8 AFTER THE ST LOUIS BROKERAGE CONCERN SAID ITS EARNINGS ROSE TO 78 CENTS A SHARE IN THE FOURTH QUARTER ENDED FEB 28 FROM 68 CENTS A YEAR EARLIER COMPUSA ADVANCED 1 5/8 TO 33 THE COMPANY SAID SAMESTORE SALES THOSE DERIVED FROM LOCATIONS OPEN AT LEAST ONE YEAR ROSE 20 FOR THE THIRD QUARTER ENDED MARCH 27 OVERALL SALES AT THE DALLAS COMPUTER EQUIPMENT RETAILER JUMPED 68 TO 365 MILLION TEXTRON INCREASED 5/8 TO 47 1/4 AFTER IT DISCLOSED PLANS TO ACQUIRE A PLASTICS BUSINESS FROM CHRYSLER'S ACUSTAR DIVISION FOR 138 MILLION IN CASH THE BUSINESS IS TO SUPPLY PRODUCTS TO CHRYSLER FOLLOWING THE PURCHASE CHRYSLER SHARES ROSE 1/8 TO 39 5/8 WITCO SHARES INCREASED 1 1/4 TO 53 1/8 SMITH BARNEY HARRIS UPHAM & CO ANALYST JAMES WILBUR ADDED THE NEW YORK CHEMICAL COMPANY'S STOCK TO A LIST OF RECOMMENDED STOCKS MR WILBUR SAID REDUCED COSTS WILL BE AMONG FACTORS THAT SHOULD IMPROVE WITCO'S EARNINGS GROWTH COOPER INDUSTRIES DROPPED 2 1/2 TO 50 5/8 THE HOUSTON ELECTRICAL PRODUCTS COMPANY SAID IT EXPECTS ITS EARNINGS FOR THE FIRST HALF TO BE LOWER THAN THE 141 A SHARE IT POSTED A YEAR EARLIER IT SAID HOWEVER THAT ITS PROFIT FOR THE FULL YEAR WILL BE 5 ABOVE 1992'S LEVEL REPSOL SA GAINED 3/4 TO 24 1/2 ON HEAVY VOLUME OF 56 MILLION AN OFFERING OF 145 MILLION AMERICAN DEPOSITARY SHARES WAS MADE AT A PRICE OF 2368 EACH THE OFFERING WAS INCREASED IN SIZE FROM AN ORIGINALLY PLANNED 12 MILLION SHARES AMERICAN DEPOSITARY SHARES OF CONSORCIO G GRUPO DINA SA ROSE 1/4 TO 16 1/4 IN HEAVY TRADING AN INITIAL PUBLIC OFFERING OF 10821909 SHARES WAS PRICED AT 16 A SHARE EACH AMERICAN DEPOSITARY SHARE REPRESENTS FOUR SHARES OF COMMON STOCK THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX JUMPED 375 TO 42343 A RECORD 9304010004 930401 UN APPROVES ENFORCEMENT OF NOFLY ZONE VOTE SETS UP CONFRONTATION BETWEEN BOSNIAN SERBS AND WESTERN FORCES BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE UNITED NATIONS SECURITY COUNCIL AUTHORIZED THE USE OF FORCE AGAINST AIRCRAFT VIOLATING A NOFLY ZONE OVER BOSNIA SETTING UP WHAT COULD BE THE FIRST CONFRONTATION BETWEEN THE WEST AND THE SERBS SINCE THE WAR IN BOSNIA BEGAN A YEAR AGO THE UN VOTE WHICH IS DESIGNED TO INCREASE THE PRESSURE ON BOSNIAN SERB FORCES WAS DELAYED SEVERAL TIMES LAST WEEK AT THE INSISTENCE OF RUSSIA A LONGTIME ALLY OF SERBIA TO WIN RUSSIA'S SUPPORT THE SECURITY COUNCIL AGREED THAT THERE WOULDN'T BE ANY PREEMPTIVE STRIKES AGAINST SERBIAN AIRFIELDS DURING ENFORCEMENT OPERATIONS THE OPERATION IS EXPECTED TO BE CONDUCTED BY NORTH ATLANTIC TREATY ORGANIZATION FORCES WHICH WOULD INCLUDE US AIRCRAFT IN THE END MOSCOW PREFERRED THAT THE RESOLUTION BE PASSED BEFORE RATHER THAN AFTER THE USRUSSIA SUMMIT THIS WEEKEND IN VANCOUVER BRITISH COLUMBIA MOSCOW WANTED TO AVOID THE APPEARANCE THAT PRESIDENT CLINTON HAD PRESSURED RUSSIAN PRESIDENT BORIS YELTSIN AT THE SUMMIT INTO AGREEING TO THE ENFORCEMENT RESOLUTION ACCORDING TO A SENIOR US OFFICIAL THE ENFORCEMENT RESOLUTION GOES INTO EFFECT IN SEVEN DAYS BUT THEN ALLOWS ANOTHER SEVEN DAYS TO ORGANIZE THE OPERATION THE SECURITY COUNCIL ESTABLISHED THE NOFLY ZONE IN OCTOBER BUT FAILED TO GIVE IT ANY ENFORCEMENT TEETH UNTIL YESTERDAY THE UN ALSO IS WORKING ON BROADER SANCTIONS AGAINST SERBIA WHICH BACKS THE BOSNIAN SERBS THESE COULD INCLUDE FINANCIAL MEASURES SUCH AS SEIZING SERBIAN ASSETS ABROAD AND CUTTING OFF SERBIA'S ACCESS TO HARD CURRENCY WHICH ALLOWS IT TO PURCHASE GOODS ABROAD OTHER POSSIBLE SANCTIONS COULD INCLUDE EXPELLING SERBIAN DIPLOMATS FROM EUROPEAN CAPITALS EXPELLING SERBIA FROM ALL INTERNATIONAL ORGANIZATIONS INCLUDING THE UN AND TIGHTENING THE CURRENT ECONOMIC EMBARGO OF SERBIA BY STATIONING UN MONITORS AT BORDER CROSSINGS BUT THE APPLICATION OF SANCTIONS AGAINST OTHER AGGRESSORS HASN'T PROVEN EFFECTIVE IN MOST CASES IN THE PAST THE LATEST EFFORTS TO INCREASE THE PRESSURE ON SERBIA AND THE BOSNIAN SERBS FOLLOWS THE SERBS' REFUSAL TO SIGN A UNBROKERED PEACE ACCORD LAST WEEK BOSNIA'S MUSLIMLED GOVERNMENT AND BOSNIAN CROATS SIGNED THE ACCORD WHICH WOULD DIVIDE WARTORN BOSNIA INTO 10 ETHNICALLY BASED PROVINCES BOSNIAN SERB LEADER RADOVAN KARADZIC REFUSED TO SIGN THE PLAN WHICH REQUIRES SERBS TO GIVE UP SOME OF THE LAND THEY HAVE SEIZED DURING THE YEARLONG CONFLICT WARNING THAT ANY NEW SANCTIONS AGAINST SERBIA WOULD END THE PEACE EFFORTS THE US MADE SEVERAL PROMISES TO THE BOSNIAN GOVERNMENT TO PERSUADE IT TO SIGN THE PEACE PLAN THESE INCLUDE A PLEDGE TO WORK TO LIFT THE UN ARMS EMBARGO AGAINST BOSNIA IF THE SERBS CONTINUE TO REFUSE TO SIGN THE ACCORD THE BOSNIAN MUSLIMS WHO HAVE BEEN THE MAIN VICTIMS OF THE VIOLENCE CLAIM THAT THE UN ARMS EMBARGO HELPS THE SERBS WHO ARE SUPPLIED WITH WEAPONS FROM SERBIA IT ISN'T CLEAR HOW MUCH TIME THE US WILL GIVE THE SERBS TO SIGN THE ACCORD BEFORE WASHINGTON BEGINS AN EFFORT TO LIFT THE EMBARGO IT ALSO ISN'T CERTAIN WHETHER THE US WOULD BE ABLE TO PERSUADE THE SECURITY COUNCIL TO LIFT THE ARMS EMBARGO SOME MEMBERS FEAR SUCH A STEP WOULD LEAD TO MORE VIOLENCE YESTERDAY'S DECISION BY THE UN SECURITY COUNCIL TO ENFORCE THE NOFLY ZONE HAS MORE SYMBOLIC THAN REAL PROTECTIVE VALUE MOST OF THE KILLING HAS BEEN DONE ON THE GROUND AND ANY WESTERN ACTION AGAINST GROUND FORCES WOULD REQUIRE FURTHER UN APPROVAL FOURTEEN OF THE COUNCIL'S 15 MEMBERS APPROVED ENFORCING THE NOFLY ZONE WHILE CHINA WHICH COULD HAVE EXERCISED A VETO ABSTAINED 9304010003 930401 ADVANCED TECHNOLOGY SUBSIDIARY BOTHELL WASH ADVANCED TECHNOLOGY LABORATORIES INC SAID IT IS OPENING A SUBSIDIARY IN MILAN ITALY AS PART OF THE MEDICAL ULTRASOUND SYSTEMS COMPANY'S STRATEGY TO EXPAND EUROPEAN BUSINESS 9304010002 930401 LETTERS TO THE EDITOR DON'T SHAKE HANDS WITH VIETNAM YET CLAUDIA ROSETT WHEN SHE WAS EDITORIALPAGE EDITOR OF THE ASIAN WALL STREET JOURNAL ONCE WROTE THAT WHAT VIETNAM'S COMMUNIST PARTY WANTS MOST FROM AMERICAN NORMALIZATION IS NOT HELP IN FOSTERING PRIVATE ENTERPRISE BUT AID AND INVESTMENT CHANNELED THROUGH THE PARTY SHORING UP ITS CLOUT OBVIOUSLY ALBERT R HUNT THE JOURNAL'S WASHINGTON BUREAU CHIEF FAILED TO COMPREHEND MS ROSETT'S UNDERSTANDING OF THE OVERWHELMING REASONS AGAINST NORMALIZATION OF RELATIONS WITH VIETNAM AS WITNESSED BY HIS MARCH 8 EDITORIALPAGE PIECE PRESIDENT CLINTON NORMALIZE TIES WITH VIETNAM MR HUNT WRITES THAT IF THE CLINTON ADMINISTRATION TAKES STEPS TO RESTORE TIES WITH VIETNAM I ALONG WITH OTHER FRINGE FIGURES WOULD OBJECT BASED ON MR CLINTON'S PERSONAL HISTORY MR CLINTON'S PAST HAS NOTHING TO DO WITH WHY RESTORING OFFICIAL TIES WITH VIETNAM IS A BAD IDEA AT THIS TIME IN FACT NEITHER DOES MR HUNT'S CLAIM THAT ECONOMIC REASONS SHOULD DRIVE THE PUSH TO NORMALIZE RELATIONS WITH A COUNTRY THAT REMAINS A BASTION OF REPRESSIVE COMMUNIST RULE VIETNAMESE RECOGNITION MUST BE LINKED TO THREE AREAS OF CONTENTION THE SATISFACTORY RESOLUTION OF THE AMERICAN POW/MIA ISSUE DESPITE SOME PROGRESS THE ISSUE IS FAR FROM RESOLVED EVIDENCE OF A RENEWED COMMITMENT TO THE OBSERVANCE OF HUMAN RIGHTS AND DEMOCRATIC RULE INCLUDING THE RELEASE OF ALL POLITICAL PRISONERS MR HUNT ADMITS THIS IS STILL A PROBLEM AND COMPLETE WITHDRAWAL OF ALL MILITARY PERSONNEL FROM CAMBODIA THE ONLY OBJECTIVE THE VIETNAMESE APPARENTLY HAVE FULFILLED BY THE WAY THESE CONDITIONS ARE COMPARABLE WITH THE CONTINGENCIES THE US HAS PLACED ON NORMALIZATION OF RELATIONS WITH CUBA IT IS UNCERTAIN WHEN OR IF VIETNAM WILL EVER ACCOMPLISH THESE GOALS YET I BELIEVE MS ROSETT'S INSIGHTFUL COMMENTARY OFFERS THE MOST PROBABLE TIMETABLE FOR DIPLOMATIC RECOGNITION NO DOUBT THE DAY IS COMING WHEN AMERICA MIGHT AS WELL RECOGNIZE VIETNAM BUT THE MOMENT AT WHICH IT WILL LEAST DAMAGE THE FORCES OF REFORM CURRENTLY IN PLAY WILL COME WHEN VIETNAM'S COMMUNIST PARTY UNDER PRESSURE FROM ITS OWN COUNTRYMEN EITHER COLLAPSES OR SURRENDERS ITS MONOPOLY ON POWER CLEARLY THAT TIME IS NOT NOW MR HUNT'S INSTRUCTIVE REPORT CONCLUDES WITH A SIMPLISTIC VIEW THAT NEEDS CORRECTION 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 CALLING THE OUTCOME OF THE VIETNAM WAR AN AMERICAN DEFEAT IS THE CONVENTIONAL VIEW BUT THIS OVERSIMPLIFIED JUDGMENT OVERLOOKS IMPORTANT POINTS ESSENTIAL TO A PROPER ASSESSMENT OUR ARMED FORCES WON EVERY MAJOR MILITARY ENGAGEMENT THEY FOUGHT IN VIETNAM MORE THEY WON WHAT WAS REALISTICALLY WINNABLE FOR THE COMMITMENT OF THOUSANDS OF AMERICANS TO COMBAT THOUSANDS OF MILES FROM HOME AGAINST A REGIME BENT ON UNIFYING VIETNAM UNDER ITS CONTROL A GOAL THAT POSED NO CLEAR AND PRESENT DANGER TO OUR OWN SECURITY WHAT WAS REALISTICALLY WINNABLE WAS AN OPPORTUNITY FOR THE GOVERNMENT OF SOUTH VIETNAM FROM A POSITION OF STRENGTH TO SEEK A VIABLE POLITICAL SETTLEMENT WITH THE NORTH DRAMATIC REFORMS TO STIFLE CORRUPTION IN THE SOUTH'S POWER STRUCTURE AND TO WIN THE HEARTS AND MINDS OF MOST SOUTH VIETNAMESE MIGHT HAVE CONVERTED THAT OPPORTUNITY INTO SOMETHING WE AND OUR VIETNAMESE ALLIES COULD CALL VICTORY THE SOUTH VIETNAMESE GOVERNMENT SQUANDERED THE OPPORTUNITY AND PROCEEDED TO LOSE THE WAR A STRUGGLE THAT WAS FOR THEM NOT US TO WIN OR LOSE PRESIDENT BUSH CORRECTLY NOTED IN HIS INAUGURAL ADDRESS THAT THE FINAL LESSON OF VIETNAM IS THAT NO GREAT NATION CAN LONG AFFORD TO BE SUNDERED BY A MEMORY NOR CAN IT AFFORD TO SUSTAIN A MEMORY SKEWED BY DISTORTED NOTIONS OF VICTORY AND DEFEAT THE WRITER CHAIRED AN INTERDISCIPLINARY STUDY OF VIETNAM ITS PEOPLE SOCIETY AND CULTURE IN 195556 9304010001 930401 TECHNOLOGY & HEALTH NATIONAL MEDICAL TO CONSOLIDATE CUT ITS CORPORATE STAFF BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL NATIONAL MEDICAL ENTERPRISES INC FACING PRICING PRESSURES FROM CUSTOMERS IN ADDITION TO CONTINUING LEGAL PROBLEMS SAID IT WILL SHAVE OVERHEAD EXPENSES BY AT LEAST 20 MILLION A YEAR CUTS WILL BE MADE THROUGH A MAJOR CONSOLIDATION AND CORPORATE STAFF REDUCTIONS THE HEALTHCARE SERVICES CONCERN SAID IT WILL FOLD ITS GENERAL HOSPITAL AND REHABILITATION HOSPITAL DIVISIONS INTO A SINGLE NEW DIVISION REPRESENTING ABOUT 78 OF ITS ESTIMATED 37 BILLION IN ANNUAL REVENUE THE PSYCHIATRIC HOSPITAL DIVISION SHARPLY PARED OVER THE PAST TWO YEARS ACCOUNTS FOR MOST OF THE BALANCE THE NEW DIVISION WILL BE HEADED BY BARRY SCHOCHET PRESIDENT AND CHIEF OPERATING OFFICER OF THE GENERAL HOSPITAL OPERATION THE TOP POST AT THE FORMER REHAB DIVISION HELD BY ALFRED Z HOMISKI JR WAS ELIMINATED MR HOMISKI 42 YEARS OLD WILL CONTINUE AS A CONSULTANT WE HAVEN'T MADE ANY FINAL DECISIONS ABOUT THE SPECIFIC NUMBER OF JOB CUTS A SPOKESMAN SAID THE REDUCTIONS WILL SHRINK THE CORPORATE STAFF OF ABOUT 1000 EMPLOYEES MOSTLY AT COMPANY HEADQUARTERS IN SANTA MONICA CALIF OF THE TOTAL ABOUT 200 JOBS ARE IN FIVE REGIONAL OFFICES WITHOUT ELABORATING THE SPOKESMAN SAID THERE WILL BE MORE REDUCTIONS AT THE FACILITY LEVEL LAST MONTH THE REHAB DIVISION CUT 183 JOBS MAINLY IN NEW HAMPSHIRE NEW JERSEY AND PENNSYLVANIA NATIONAL MEDICAL EMPLOYS ABOUT 50000 PEOPLE WORLDWIDE WE MUST MAKE THESE DIFFICULT DECISIONS IF WE ARE TO MEET THE IMPOSING CHALLENGES FACING HEALTHCARE SERVICE PROVIDERS SAID RICHARD K EAMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SEPARATELY NATIONAL MEDICAL SAID IT WILL HAVE A ONETIME GAIN OF BETWEEN 30 MILLION AND 40 MILLION IN THE FISCAL FOURTH QUARTER ENDING MAY 31 RELATED TO THE PUBLIC SALE OF STOCK IN ITS UK CHAIN OF LONGTERM CARE FACILITIES PROCEEDS FROM THE SALE WHICH BEGAN YESTERDAY ARE EXPECTED TO REDUCE NATIONAL MEDICAL'S 11 BILLION OF DEBT BY ABOUT 120 MILLION STANDARD & POOR'S CORP YESTERDAY DOWNGRADED ITS RATING ON 400 MILLION OF NATIONAL MEDICAL SENIOR DEBT CITING THE COMPANY'S BIG DEBT BURDEN EARNINGS PRESSURES AND UNCERTAINTIES ABOUT THE FUTURE IMPACT OF PENDING LITIGATION NATIONAL MEDICAL FACES LAWSUITS FROM INSURANCE COMPANIES SEEKING TO RECOVER HUNDREDS OF MILLIONS PAID IN PSYCHIATRIC CLAIMS THAT THE INSURERS ALLEGE WERE FRAUDULENT NATIONAL MEDICAL DENIED THE ALLEGATIONS S&P LOWERED ITS RATING TO TRIPLEBMINUS FROM TRIPLEB AND FURTHER CAUTIONED A REDUCTION IN THE RATINGS TO SPECULATIVE GRADE IS POSSIBLE WITHIN A FEW YEARS WE'RE DISAPPOINTED BECAUSE IT WILL RAISE OUR COST OF BORROWING OUR CASH FLOW IS STILL POSITIVE THE SPOKESMAN SAID BUT THERE IS UNCERTAINTY ABOUT THE FUTURE AND WE CAN'T ARGUE WITH THAT NATIONAL MEDICAL SHARES WERE QUOTED AT 9125 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9304010174 930315 QUANTIFYING AMERICA'S DECLINE BY WILLIAM J BENNETT IS OUR CULTURE DECLINING I HAVE TRIED TO QUANTIFY THE ANSWER TO THIS QUESTION WITH THE CREATION OF THE INDEX OF LEADING CULTURAL INDICATORS IN THE EARLY 1960S THE CENSUS BUREAU BEGAN PUBLISHING THE INDEX OF LEADING ECONOMIC INDICATORS THESE 11 MEASUREMENTS TAKEN TOGETHER REPRESENT THE BEST MEANS WE NOW HAVE OF INTERPRETING CURRENT BUSINESS DEVELOPMENTS AND PREDICTING FUTURE ECONOMIC TRENDS THE INDEX OF LEADING CULTURAL INDICATORS A COMPILATION OF THE HERITAGE FOUNDATION AND EMPOWER AMERICA ATTEMPTS TO BRING A SIMILAR KIND OF DATABASED ANALYSIS TO CULTURAL ISSUES IT IS A STATISTICAL PORTRAIT FROM 1960 TO THE PRESENT OF THE MORAL SOCIAL AND BEHAVIORAL CONDITIONS OF MODERN AMERICAN SOCIETY MATTERS THAT IN OUR TIME OFTEN TRAVEL UNDER THE BANNER OF VALUES PERHAPS NO ONE WILL BE SURPRISED TO LEARN THAT ACCORDING TO THE INDEX AMERICA'S CULTURAL CONDITION IS FAR FROM HEALTHY WHAT IS SHOCKING IS JUST HOW PRECIPITOUSLY AMERICAN LIFE HAS DECLINED IN THE PAST 30 YEARS DESPITE THE ENORMOUS GOVERNMENTAL EFFORT TO IMPROVE IT SINCE 1960 THE US POPULATION HAS INCREASED 41 THE GROSS DOMESTIC PRODUCT HAS NEARLY TRIPLED AND TOTAL SOCIAL SPENDING BY ALL LEVELS OF GOVERNMENT MEASURED IN CONSTANT 1990 DOLLARS HAS RISEN FROM 14373 BILLION TO 787 BILLION MORE THAN A FIVEFOLD INCREASE INFLATIONADJUSTED SPENDING ON WELFARE HAS INCREASED BY 630 SPENDING ON EDUCATION BY 225 BUT DURING THE SAME 30YEAR PERIOD THERE HAS BEEN A 560 INCREASE IN VIOLENT CRIME A 419 INCREASE IN ILLEGITIMATE BIRTHS A QUADRUPLING IN DIVORCE RATES A TRIPLING OF THE PERCENTAGE OF CHILDREN LIVING IN SINGLEPARENT HOMES MORE THAN A 200 INCREASE IN THE TEENAGE SUICIDE RATE AND A DROP OF ALMOST 80 POINTS IN SAT SCORES CLEARLY MANY MODERNDAY SOCIAL PATHOLOGIES HAVE GOTTEN WORSE MORE IMPORTANT THEY SEEM IMPERVIOUS TO GOVERNMENT'S ATTEMPTS TO CURE THEM ALTHOUGH THE GREAT SOCIETY AND ITS MANY SOCIAL PROGRAMS HAVE HAD SOME GOOD EFFECTS THERE IS A VAST BODY OF EVIDENCE SUGGESTING THAT THESE REMEDIES HAVE REACHED THE LIMITS OF THEIR SUCCESS PERHAPS MORE THAN ANYTHING ELSE AMERICA'S CULTURAL DECLINE IS EVIDENCE OF A SHIFT IN THE PUBLIC'S ATTITUDES AND BELIEFS SOCIAL SCIENTIST JAMES Q WILSON WRITES THAT THE POWERS EXERCISED BY THE INSTITUTIONS OF SOCIAL CONTROL HAVE BEEN CONSTRAINED AND PEOPLE ESPECIALLY YOUNG PEOPLE HAVE EMBRACED AN ETHOS THAT VALUES SELFEXPRESSION OVER SELFCONTROL THE FINDINGS OF POLLSTER DANIEL YANKELOVICH SEEM TO CONFIRM THIS DIAGNOSIS OUR SOCIETY NOW PLACES LESS VALUE THAN BEFORE ON WHAT WE OWE TO OTHERS AS A MATTER OF MORAL OBLIGATION LESS VALUE ON SACRIFICE AS A MORAL GOOD LESS VALUE ON SOCIAL CONFORMITY AND RESPECTABILITY AND LESS VALUE ON CORRECTNESS AND RESTRAINT IN MATTERS OF PHYSICAL PLEASURE AND SEXUALITY SOME WRITERS HAVE SPOKEN ELOQUENTLY ON THESE MATTERS WHEN THE LATE WALKER PERCY WAS ASKED WHAT CONCERNED HIM MOST ABOUT AMERICA'S FUTURE HE ANSWERED PROBABLY THE FEAR OF SEEING AMERICA WITH ALL ITS GREAT STRENGTH AND BEAUTY AND FREEDOM GRADUALLY SUBSIDE INTO DECAY THROUGH DEFAULT AND BE DEFEATED NOT BY THE COMMUNIST MOVEMENT DEMONSTRABLY A BANKRUPT SYSTEM BUT FROM WITHIN BY WEARINESS BOREDOM CYNICISM GREED AND IN THE END HELPLESSNESS BEFORE ITS GREAT PROBLEMS ALEXANDER SOLZHENITSYN IN A SPEECH EARLIER THIS YEAR PUT IT THIS WAY THE WEST HAS BEEN UNDERGOING AN EROSION AND OBSCURING OF HIGH MORAL AND ETHICAL IDEALS THE SPIRITUAL AXIS OF LIFE HAS GROWN DIM JOHN UPDIKE HAS WRITTEN THE FACT THAT COMPARED TO THE INHABITANTS OF AFRICA AND RUSSIA WE STILL LIVE WELL CANNOT EASE THE PAIN OF FEELING WE NO LONGER LIVE NOBLY TREATISES HAVE BEEN WRITTEN ON WHY THIS DECLINE HAS HAPPENED THE HARD TRUTH IS THAT IN A FREE SOCIETY THE ULTIMATE RESPONSIBILITY RESTS WITH THE PEOPLE THEMSELVES THE GOOD NEWS IS THAT WHAT HAS BEEN SELFINFLICTED CAN BE SELFCORRECTED THERE ARE A NUMBER OF THINGS WE CAN DO TO ENCOURAGE CULTURAL RENEWAL FIRST GOVERNMENT SHOULD HEED THE OLD INJUNCTION DO NO HARM OVER THE YEARS IT HAS OFTEN DONE UNINTENDED HARM TO MANY OF THE PEOPLE IT WAS TRYING TO HELP THE DESTRUCTIVE INCENTIVES OF THE WELFARE SYSTEM ARE PERHAPS THE MOST GLARING EXAMPLE OF THIS SECOND POLITICAL LEADERS CAN HELP SHAPE SOCIAL ATTITUDES THROUGH PUBLIC DISCOURSE AND THROUGH MORALLY DEFENSIBLE SOCIAL LEGISLATION A THOUGHTFUL SOCIAL AGENDA TODAY WOULD PERHAPS INCLUDE A MORE TOUGHMINDED CRIMINAL JUSTICE SYSTEM INCLUDING MORE PRISONS A RADICAL REFORM OF EDUCATION THROUGH NATIONAL STANDARDS AND SCHOOL CHOICE A SYSTEM OF CHILDSUPPORT COLLECTION WHEREBY FATHERS WOULD BE MADE TO TAKE RESPONSIBILITY FOR THEIR CHILDREN A RESCINDING OF NOFAULT DIVORCE LAWS FOR PARENTS WITH CHILDREN AND RADICAL REFORM OF THE WELFARE SYSTEM BUT EVEN IF THESE AND OTHER WORTHWHILE EFFORTS ARE MADE WE SHOULD TEMPER OUR EXPECTATIONS OF WHAT GOVERNMENT CAN DO A GREATER HOPE LIES ELSEWHERE OUR SOCIAL AND CIVIC INSTITUTIONS FAMILIES CHURCHES SCHOOLS NEIGHBORHOODS AND CIVIC ASSOCIATIONS HAVE TRADITIONALLY TAKEN ON THE RESPONSIBILITY OF PROVIDING OUR CHILDREN WITH LOVE ORDER AND DISCIPLINE OF TEACHING SELFCONTROL COMPASSION TOLERANCE CIVILITY HONESTY AND RESPECT FOR AUTHORITY GOVERNMENT EVEN AT ITS BEST CAN NEVER BE MORE THAN AN AUXILIARY IN THE DEVELOPMENT OF CHARACTER THE SOCIAL REGRESSION OF THE PAST 30 YEARS IS DUE IN LARGE PART TO THE ENFEEBLED STATE OF OUR SOCIAL INSTITUTIONS AND THEIR FAILURE TO CARRY OUT THEIR CRITICAL AND TIMEHONORED TASKS WE DESPERATELY NEED TO RECOVER A SENSE OF THE FUNDAMENTAL PURPOSE OF EDUCATION WHICH IS TO ENGAGE IN THE ARCHITECTURE OF SOULS WHEN A SELFGOVERNING SOCIETY IGNORES THIS RESPONSIBILITY IT DOES SO AT ITS PERIL MR BENNETT SECRETARY OF EDUCATION FROM 1985 TO 1988 IS CODIRECTOR OF EMPOWER AMERICA A NEW POLITICAL ORGANIZATION AND A FELLOW AT THE HERITAGE FOUNDATION SEE RELATED LETTER LETTERS TO THE EDITOR IS AMERICA DECAYING AND WHY WSJ MARCH 31 1993 9303150043 9303310172 930331 THAILAND TOURISM IS UP BANGKOK THAILAND TOURIST ARRIVALS TO THAILAND ROSE A SCANT 097 IN 1992 THE TOURISM AUTHORITY OF THAILAND SAID FOR 1993 THE AUTHORITY SAID IT EXPECTS ARRIVALS TO RISE 8 TO 5550000 THAT'S UP FROM A 5 INCREASE THE AGENCY PREDICTED LAST MONTH 9303310171 930331 GREYHOUND TO OFFER SHARES DALLAS GREYHOUND LINES INC'S BOARD AUTHORIZED THE COMPANY TO REGISTER A 75 MILLION PUBLIC OFFERING OF COMMON STOCK THE BUS COMPANY SAID IT INTENDS TO FILE A STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AS SOON AS PRACTICABLE PROCEEDS WILL BE USED TO PURCHASE NEW BUSES AND FOR OTHER CORPORATE PURPOSES 9303310170 930331 CANADIAN BANKRUPTCIES DROP OTTAWA CANADIAN BANKRUPTCIES TOTALED 5821 IN FEBRUARY A 13 DECLINE FROM 6699 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID BANKRUPTCIES BY INDIVIDUALS TOTALED 4666 IN FEBRUARY A 16 DECLINE FROM 5581 A YEAR EARLIER AND BUSINESS BANKRUPTCIES TOTALED 1155 A 33 INCREASE FROM 1118 A YEAR EARLIER 9303310169 930331 INTERNATIONAL SIEMENS GETS TAIPEI JOB TAIPEI TAIWAN SIEMENS AG OF GERMANY WON AN 895 BILLION TAIWAN DOLLAR US344 MILLION CONTRACT TO BUILD 216 SUBWAY CARS FOR TAIPEI THE CITY'S RAPID TRANSIT SYSTEM DEPARTMENT ANNOUNCED IT WAS THE LARGEST SINGLE CONTRACT FOR THE 55MILE TAIPEI SUBWAY OFFICIALS SAID THE SUBWAY IS SCHEDULED TO BE COMPLETED IN 1999 9303310168 930331 FIRST WESTERN STOCK OFFER SCOTTSDALE ARIZ FIRST WESTERN CORP SAID IT RAISED 25 MILLION IN AN OFFERING OF 1750000 COMMON SHARES PRICED AT 1550 EACH THE MORTGAGE BANKING COMPANY NOW HAS ABOUT 51 MILLION COMMON SHARES OUTSTANDING EXCLUDING A 262500 OVERALLOTMENT OPTION GRANTED TO THE UNDERWRITERS PRUDENTIAL SECURITIES INC NEW YORK AND RAUSCHER PIERCE REFSNES INC DALLAS MANAGED THE OFFERING 9303310167 930331 LEASING SOLUTIONS STOCK OFFERING SAN JOSE CALIF LEASING SOLUTIONS INC SAID IT WAS MAKING AN INITIAL PUBLIC OFFERING OF ONE MILLION COMMON SHARES AT 5 A SHARE NEEDHAM & CO IS THE MANAGING UNDERWRITER OF THE OFFERING LEASING SOLUTIONS A LESSOR OF INFORMATION PROCESSING AND COMMUNICATIONS EQUIPMENT PLANS TO USE THE PROCEEDS FOR GENERAL CORPORATE PURPOSES 9303310166 930331 SIERRA REAL ESTATE EQUITY TRUST SAN FRANCISCO SIERRA REAL ESTATE EQUITY TRUST '84 SAID IT RESTATED ITS 1992 NET LOSS TO ACCOUNT FOR A FURTHER WRITEDOWN OF PROPERTIES REFLECTING THE CONTINUED DECLINE IN SOUTHERN CALIFORNIA AND PHOENIX REAL ESTATE MARKETS AND THE COMPANY'S LIQUIDITY PROBLEMS THE TRUST SAID ITS LOSS LAST YEAR WAS 71 MILLION OR 145 A SHARE INSTEAD OF 37 MILLION OR 765 CENTS A SHARE AS REPORTED IN FEBRUARY 9303310165 930331 ICI UNIT'S TRADING DATE LONDON IMPERIAL CHEMICAL INDUSTRIES PLC SAID IT EXPECTS TRADING IN ITS BIOSCIENCES ARM ZENECA GROUP PLC TO START JUNE 1 THE UK CHEMICAL CONCERN SAID A PRELIMINARY PROSPECTUS WILL BE PUBLISHED APRIL 21 AND A FINAL PROSPECTUS WILL COME OUT MAY 12 ICI SAID AN EXTRAORDINARY GENERAL MEETING WILL BE HELD MAY 28 TO SEEK APPROVAL FOR THE SPLITUP ICI ANNOUNCED IN FEBRUARY THAT IT WOULD BE GOING AHEAD WITH PLANS TO SPLIT ITS OPERATIONS ZENECA WILL CONTAIN THE AGROSCIENCE OPERATIONS AND THE PHARMACEUTICALS BUSINESSES WHILE ICI WILL CARRY ON WITH THE OTHER ACTIVITIES SUCH AS COMMODITY CHEMICALS PAINTS AND MATERIALS 9303310164 930331 TECHNOLOGY REGENERON PHARMACEUTICALS TEST TARRYTOWN NY REGENERON PHARMACEUTICALS INC SAID IT HAS BEGUN STUDIES TO TEST THE EFFECTIVENESS OF ITS EXPERIMENTAL DRUG TO TREAT LOU GEHRIG'S DISEASE THE DRUG RECOMBINANT HUMAN CILIARY NEUROTROPHIC FACTOR OR RHCNTF WILL BE TESTED OVER NINE MONTHS ON MORE THAN 700 PATIENTS WITH LOU GEHRIG'S DISEASE IN OVER 30 CLINICAL SITES IN THE US ACCORDING TO THE COMPANY THE FATAL DISEASE MEDICALLY KNOWN AS AMYOTROPHIC LATERAL SCLEROSIS CAUSES THE DEGENERATION OF THE NERVE CELLS THAT CONTRACT MUSCLES LEADING TO PROGRESSIVE MUSCLE WEAKNESS 9303310163 930331 IBM REACHES PACT WITH HERTZ ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP SAID IT SIGNED A FIVEYEAR AGREEMENT TO PROVIDE A VARIETY OF INFORMATION TECHNOLOGY SERVICES TO CAR RENTAL CONCERN HERTZ CORP THE COMPUTER MAKER SAID ITS INTEGRATED SYSTEMS SOLUTIONS CORP UNIT WILL HANDLE SYSTEMS OPERATIONS SELECTED APPLICATION DEVELOPMENT AND MAINTENANCE SUPPORT OF IBM MAINFRAMES AT THE HERTZ DATA CENTER IN OKLAHOMA CITY SEPARATELY HERTZ SAID IT SIGNED A FRANCHISE AGREEMENT WITH A COMPANY IN ALBANIA IT SAID THE FRANCHISEE KOMPAS HAS ALREADY STARTED CAR RENTAL OPERATIONS AT THE AIRPORT OF TIRANA THE CAPITAL CITY 9303310162 930331 MARKETING BY RICHARD GIBSON SO THE MARKETING DEPARTMENT SAYS IT'S GENERATING LOTS OF SALES LEADS ANY IDEA HOW MANY ARE ACTUALLY PURSUED OFTEN A LOT FEWER THAN ONE MIGHT THINK SAYS PERFORMARK A MINNEAPOLIS SPECIALIST IN SALES AND MARKETING SERVICES IN A FIVEYEAR STUDY PERFORMARK RESEARCHERS PRETENDING TO BE POTENTIAL CUSTOMERS MAILED IN THOUSANDS OF READERRESPONSE CARDS THE KIND FOUND IN BUSINESS AND TRADE PUBLICATIONS WITH OFFERS OF MORE INFORMATION ON GOODS AND SERVICES THEY RESPONDED TO SOLICITATIONS FROM HUNDREDS OF COMPANIES SELLING INDUSTRIAL PRODUCTS COSTING AT LEAST 5000 WHAT HAPPENED IT TOOK AN AVERAGE OF 58 DAYS FOR THE REQUESTED PAMPHLETS OR BROCHURES TO ARRIVE NEARLY ONE OUT OF FOUR INQUIRIES WENT UNANSWERED ONLY ONE IN EIGHT GENERATED A FOLLOWUP CALL BY A SALES REPRESENTATIVE AND THOSE CONTACTS CAME AN AVERAGE OF 89 DAYS AFTER PERFORMARK'S INITIAL INDICATION OF INTEREST SLOW RESPONSE IS RISKY PERFORMARK EXECUTIVES SAY BY THE TIME THE REQUESTED INFORMATION ARRIVES THE RECIPIENT MAY HAVE A LOW OPINION OF THE COMPANY OR WORSE MAY HAVE LOCATED A MORE ATTENTIVE SUPPLIER THE PROBLEM IS SALES AND MARKETING AREN'T WORKING TOGETHER SAYS PERFORMARK PRESIDENT JOSEPH LETHERT NO ONE HAS RESPONSIBILITY FOR MAKING SURE PROSPECTS ARE CONVERTED TO CUSTOMERS TOO OFTEN HE SAYS MARKETING PEOPLE BLAME THE SALES FORCE FOR NOT PURSUING LEADS WHILE SALESPEOPLE ARE LOATH TO SHARE INFORMATION ABOUT THEIR CUSTOMERS MANY INQUIRYFULFILLMENT OPERATIONS ALSO ARE SLOPPY THE RESEARCHERS REPORT PERFORMARK EMPLOYEES SENT IN HUNDREDS OF DUPLICATE REQUESTS AND MOST GENERATED RESPONSES COSTING COMPANIES THOUSANDS OF DOLLARS IN EXTRA POSTAGE AND LABOR ALSO THE NAMES OF THOSE SEEKING INFORMATION WERE OFTEN MISSPELLED VIDEO STORES WOULD LIKE TO PUT AN R FOR RESTRICTED RATING ON SOME VIDEO PROMOTIONS VIDEOS ARE AN INCREASINGLY POPULAR MARKETING TOOL WALT DISNEY'S BUENA VISTA HOME VIDEO UNIT FOR EXAMPLE IS PROMOTING ITS CURRENT RELEASE OF PINOCCHIO TAPES THROUGH PRODUCT TIEINS INCLUDING A 4 REBATE FROM COLGATEPALMOLIVE ON PURCHASES OF THE TAPE A TUBE OF TOOTHPASTE AND A COLGATE BRUSH THOSE OFFERS STIMULATE VIDEOSTORE SALES BUT THE DEALERS WORRY ABOUT OTHERS THAT UNDERCUT THEM STORE OPERATORS HOWLED WHEN MCDONALD'S SOLD CASSETTES OF THE OSCARWINNING FILM DANCES WITH WOLVES LAST CHRISTMAS WHILE ONLY LIMITED NUMBERS OF THE TAPES WERE FOR SALE ELSEWHERE AT PREMIUM PRICES MCDONALD'S PRICE OF 799 TO PATRONS WHO ALSO BOUGHT A SANDWICH WAS WELL BELOW WHAT VIDEO RETAILERS HAD PLANNED TO CHARGE ONCE THE TAPES BECAME WIDELY AVAILABLE SO A FEW ENTERPRISING VIDEOSTORE OPERATORS BOUGHT HUNDREDS OF THE TAPES AT LOCAL RESTAURANTS AND RESOLD THEM IN THEIR STORES INFURIATING COMPETITORS DON ROSENBERG EXECUTIVE VICE PRESIDENT OF THE VIDEO SOFTWARE DEALERS ASSOCIATION SAYS HIS ORGANIZATION ARGUED THAT THE PROMOTION WAS A MISTAKE IN LETTERS TO THE MAJOR STUDIOS INCLUDING ORION PICTURES WHICH MADE THE WOLVES DEAL WITH MCDONALD'S THE GROUP ALSO WAS UPSET WITH MCDONALD'S WHEN HE SAYS SOME RESTAURANTS SOLD ASSOCIATION EMPLOYEES TAPES WITHOUT REQUIRING ANY FOOD PURCHASE THERE WAS CLEARLY ABUSE GOING ON MR ROSENBERG SAYS I COMMEND THEIR MCDONALD'S MARKETING PEOPLE I THINK IT WAS A BRILLIANT PROMOTION BUT HE ADDS IT'S A BAD PRECEDENT TO SET ONE PROBLEM CONFUSING THE CUSTOMER AS TO THE TAPE'S VALUE IF YOU CAN BUY A BRAND NEW ACADEMY AWARDWINNING MOVIE FOR 8 YOU PUT IN THE CONSUMER'S MIND THAT'S ALL IT'S WORTH MCDONALD'S WASN'T AWARE OF ABUSES IN ITS WOLVES PROMOTION A SPOKESMAN SAYS ADDING THAT GUIDELINES CALLED FOR TAPES TO BE SOLD ONLY WITH FOOD PURCHASES ORION OFFICIALS DECLINE TO COMMENT DON'T PITCH THAT BEATUP OLD SOFTBALL RECYCLE IT PLAY IT AGAIN SPORTS A CHAIN OF SPORTINGGOODS SHOPS IS SCORING POINTS BY SELLING USED EQUIPMENT SOMETIMES ON CONSIGNMENT USING A MERCHANDISING TECHNIQUE USUALLY LIMITED TO WOMEN'S FASHION APPAREL AND BABY FURNITURE THE COMPANY TAKES ADVANTAGE OF WEEKEND SPORTS' POPULARITY AND HIGH COST PEOPLE ARE LOOKING FOR BETTER VALUE FOR THEIR DOLLARS SPENT SAYS ROBERT E THINER EXECUTIVE VICE PRESIDENT OF FINANCE FOR THE COMPANY WHICH BEGAN WITH A FEW SHOPS AROUND MINNEAPOLIS 10 YEARS AGO AND HAS GROWN TO 320 STORES MOSTLY FRANCHISES IN THE US CANADA AND MEXICO ALSO RECYCLING IS A BIG THEME PARTS OF THE SPORTINGGOODS MARKET ARE ESPECIALLY SUITED TO RECYCLING SINCE MANY PEOPLE WHO BUY EXERCISE EQUIPMENT DON'T USE IT FOR LONG ABOUT 60 OF THE CHAIN'S SALES ARE IN USED EQUIPMENT MR THINER SAYS THE COMPANY BEGAN CARRYING NEW MERCHANDISE EARLY ON WHEN CUSTOMERS CASHING IN OLD ITEMS WANTED TO REPLACE THEM WITH CERTAIN SIZES OR BRANDS NOT IN STOCK AT THE PLAY IT AGAIN SPORTS OUTLET IN DES MOINES IOWA FRANCHISEE RICHARD S JOHNSON TAKES IN EVERYTHING FROM TENNIS RACKETS TO TOBOGGANS BIG SECONDHAND SELLERS INCLUDE PING PUTTERS PUNCHING BAGS AND NORDICTRACK EXERCISE MACHINES WE SELL WELL OVER 1000 USED GOLF BALLS A YEAR MR JOHNSON SAYS THE STORES DON'T BUY SOME USED ITEMS INCLUDING CLOTHING AND BOATING EQUIPMENT NOR DO THEY HANDLE FIREARMS USED EQUIPMENT ISN'T FOR EVERYONE KIDS ESPECIALLY MAY BE RELUCTANT TO SETTLE FOR SAY DINGEDUP BATS WHEN THEIR PALS SPORT NEW ONES ALSO IT'S BUYER BEWARE IN PICKING ITEMS MR JOHNSON PRICES ALL USED SOFTBALLS AT 195 BUT SAYS SOME ARE WORTH 3 SOME 10 CENTS PUFF PIECE RJ REYNOLDS TOBACCO OFFERS PARENTS BOOKLETS ON HOW TO TALK TO YOUR KIDS ABOUT NOT SMOKING EVEN IF YOU DO MINDFUL OF NANNYGATE A DOMINO'S PIZZA FRANCHISE IN WASHINGTON KNOCKS 1 OFF ORDERS FROM NANNIES WHO SHOW THEIR SOCIAL SECURITY CARDS TO DELIVERY PERSONNEL 9303310161 930331 WORLD MARKETS TOKYO STOCKS FALL AS PROFITTAKERS ARBITRAGERS PREVAIL BARGAINHUNTERS LIFT PRICES IN LONDON A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS FELL TUESDAY PUSHED DOWN BY PROFITTAKING AND ARBITRAGESELLING LONDON SHARES ROSE IN A TECHNICAL REACTION TO RECENT LOSSES AS BARGAINHUNTERS EMERGED IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SURGED 25968 POINTS MONDAY LOST 8522 TO 1896316 AFTER FINISHING ABOVE THE 19000 BARRIER FOR JUST ONE SESSION ON WEDNESDAY THE NIKKEI ROSE 5441 POINTS TO CLOSE THE MORNING SESSION AT 1901757 TUESDAY'S FIRSTSECTION SECTION VOLUME WAS ESTIMATED AT 620 MILLION SHARES DOWN FROM 6787 MILLION SHARES ON MONDAY LOSERS TOPPED GAINERS 550489 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 2682 POINTS MONDAY DECLINED 248 TO 145254 DESPITE INVESTORS' TAKING PROFITS AND ARBITRAGERS' BUYING AND SELLING SECURITIES ON MULTIPLE EXCHANGES TO PROFIT FROM SMALL PRICE DIFFERENCES SENTIMENT REMAINED BRIGHT AS PARTICIPANTS WERE WIDELY CONFIDENT THAT THE LONGSLUMPING JAPANESE ECONOMY IS ON A RECOVERY TRACK EVEN THE PROFITTAKING WAS VIEWED AS A HEALTHY SIGN TO KEEP PRICES CLOSER TO COMPANY VALUES TELECOMMUNICATIONS WIRE AND CABLE CONCERNS GAINED ON A NEWS REPORT THAT POLITICIANS WERE CLEARING THE WAY TO INCREASE RATES ON TELEPHONE CALLS REVENUE MAY BE USED TO BUILD A FIBEROPTIC TELECOMMUNICATIONS NETWORK A BOUT OF SMALLLOT BUYING IN THE FINAL HALFHOUR OF TRADING LIFTED THE NIKKEI MORE THAN 100 POINTS TO CLOSE SOLIDLY ABOVE ITS INTRADAY LOW OF 1885324 THE MOVE WAS BELIEVED TO BE AN OPERATION BY PUBLIC PENSION FUNDS TO SUPPORT THE MARKET IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 145 POINTS TO 28610 THE FT 30STOCK INDEX GAINED 64 POINTS TO 22207 VOLUME WAS 7339 MILLION SHARES UP FROM 4847 MILLION SHARES A DAY EARLIER DECLINES LAST WEEK AND MONDAY PROMPTED LIGHT BARGAINHUNTING YESTERDAY AS SOME INVESTORS SAW THE FTSE 100 INDEX'S FALL BELOW 2850 AS A TRIGGER TO COMMIT FURTHER FUNDS TO THE MARKET AND A FIRM STOCKINDEX FUTURES MARKET PROVIDED THE LEAD FOR THE BOURSE'S BUOYANT PERFORMANCE STOCKS ALSO WERE UNDERPINNED BY TAXRELATED BUYING AND SOCALLED WINDOW DRESSING PURCHASES OF SOLID PERFORMERS TO IMPROVE PORTFOLIOS AHEAD OF THE END OF THE QUARTER IN FRANKFURT SHARE PRICES CLOSED HIGHER AFTER MOVING IN AN UNUSUALLY NARROW RANGE AMID MODERATE TRADING THE DAX 30STOCK INDEX ROSE 1015 POINTS TO 168507 FOLLOWING CONFINEMENT TO AN 1113POINT BAND IN A CONSOLIDATION IN WHICH THE MARKET IS BELIEVED TO HAVE REACHED A BOTTOM FOR NOW REMARKS BY HELMUT HESSE A MEMBER OF THE GERMAN BUNDESBANK'S POLICYMAKING CENTRAL BANK COUNCIL THAT SMALL INTERESTRATE CUTS WOULD CONTINUE FUELED SPECULATION AHEAD OF TOMORROW'S COUNCIL MEETING AND NEWS OF LARGE ORDERS PLACED BY CHINA WITH GERMAN FIRMS BUOYED SOME FRANKFURT SHARE PRICES TAKING THE DAX HIGHER PARIS SHARES GAVE UP SOME EARLY GAINS BUT FINISHED HIGHER AS INVESTORS CONTINUED TO SHOW CONFIDENCE IN FRANCE'S NEW CONSERVATIVE MAJORITY GOVERNMENT AMSTERDAM STOCKS ROSE BROADLY LIFTED BY LONDON'S FIRM MARKET AND WALL STREET'S EARLY GAINS AND BY THE GERMAN MONETARY OFFICIAL'S STATEMENTS THAT THE BUNDESBANK WILL CONTINUE TO EASE INTEREST RATES THIS YEAR IN SMALL STEPS MILAN STOCKS TUMBLED AS GROWING ITALIAN POLITICAL TENSIONS FROM A CORRUPTION SCANDAL WEIGHED ON THE MARKET IN MADRID EQUITIES SURGED FUELED BY CONTINUING OPTIMISM ABOUT DECLINING SPANISH INTEREST RATES STOCKHOLM PRICES DECLINED BECAUSE OF PROFITTAKING IN SOME BLUE CHIPS AFTER RECENT GAINS IN HONG KONG SPECULATION THAT GOV CHRIS PATTEN MIGHT BE FORCED OUT OF OFFICE RUMORS THAT WERE LATER DENIED PUSHED SHARES UP SHARPLY MR PATTEN'S PROPOSALS FOR DEMOCRATIC REFORM IN THE BRITISH COLONY HAVE RESULTED IN A LINGERING DISPUTE BETWEEN BRITAIN AND CHINA ABOUT HONG KONG'S FUTURE GOVERNANCE IN SEOUL PRICES SURGED AS SENTIMENT IMPROVED ON FAVORABLE SOUTH KOREAN TRADE STATISTICS AND THE END OF LANDSPECULATION INVESTIGATIONS OF POLITICIANS AMONG CORPORATE DEVELOPMENTS IN LONDON THAMES TELEVISION WAS SUSPENDED AT 221 PENCE 330 UP 32 PENCE AT THE COMPANY'S REQUEST PENDING AN ANNOUNCEMENT TOMORROW RELATING TO 1992 FINANCIAL RESULTS AND TO NEWS REPORTS THAT THE ELECTRONICS CONCERN THORN EMI AND THE DIVERSIFIED MEDIA GROUP PEARSON HAVE HELD EXPLORATORY TALKS ABOUT PURCHASING THAMES TV WHICH DIDN'T ELABORATE IN ZURICH CIBAGEIGY FELL 9 SWISS FRANCS OR 14 TO 637 FRANCS 42310 ON NEWS THAT THE DRUG AND CHEMICAL COMPANY IS CONSIDERING REDUCING ITS SHARE CATEGORIES TO ONE FROM THREE IN LINE WITH MARKET EXPECTATIONS CIBA'S 1992 GROUP PROFIT ROSE 19 TO 152 BILLION FRANCS 101 BILLION FROM A YEAR EARLIER AND THE DIVIDEND WAS RAISED 77 TO 14 FRANCS A SHARE THE COMPANY ALSO EXPRESSED CONFIDENCE ABOUT ITS 1993 FINANCIAL PERFORMANCE 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 9303310160 930305 CLINTON'S SUMMER JOBS SHAM BY JAMES BOVARD THE FLAGSHIP OF PRESIDENT CLINTON'S EMERGENCY ECONOMIC STIMULUS PROGRAM IS HIS PROPOSAL TO SPEND A BILLION DOLLARS TO CREATE 700000 SUMMER JOBS FOR YOUTH BUT THE PROGRAM IS FUNDAMENTALLY FRAUDULENT AND SUBVERSIVE OF AMERICA'S LONGTERM ECONOMIC FUTURE GOVERNMENT SUMMER JOBS PROGRAMS HAVE LONG SABOTAGED THE WORK ETHIC THE GENERAL ACCOUNTING OFFICE NOTED AS EARLY AS 1969 THAT SOME PEOPLE HIRED IN THE GOVERNMENT SUMMER PROGRAMS REGRESSED IN THEIR CONCEPTION OF WHAT SHOULD REASONABLY BE REQUIRED IN RETURN FOR WAGES PAID SEN LAWTON CHILES COMPLAINED IN 1979 THAT YOUNG PEOPLE GET SUCH A STRONG MESSAGE OF CYNICISM AND CORRUPTION THAT IT CANNOT FAIL TO CARRY OVER INTO THEIR ATTITUDES ABOUT WORK CRIME AND SOCIETY WASHINGTON DC HAS ONE OF THE LARGEST SUMMER JOB PROGRAMS WITH MORE THAN 16000 YOUTHS COLLECTING CHECKS FINANCED JOINTLY BY THE FEDERAL AND LOCAL GOVERNMENT I VISITED SOME OF THE WASHINGTON SITES IN 1989 AT THE MARION BARRY YOUTH LEADERSHIP INSTITUTE NAMED AFTER THE CITY'S ROLEMODEL MAYOR YOUNG PEOPLE WORKED BY HAVING A ROWDY TALK OVER WHETHER WOMEN ARE NOT INTERESTED IN SEX AND WHETHER MEN WANT WOMEN TO BE SUBMISSIVE THE DIRECTOR EXPLAINED TO ME THAT THE TEENAGERS WERE LEARNING CONVERSATIONAL SKILLS MANY PARTICIPANTS WERE SHOUTING THROWING PAPERCLIPS AND PUNCHING EACH OTHER AND FEW WERE PAYING ATTENTION TO THE GROUP LEADERS IN THE AFTERNOON THE YOUTH WERE PAID TO WORK AT BASKETBALL A FREQUENT OCCUPATIONAL SKILL UNDERWRITTEN BY BIGCITY SUMMER JOBS PROGRAMS THE SUMMER PROGRAMS OFTEN REVEAL A GENIUS FOR DIVORCING JOBS FROM WORK THE NEW YORK TIMES REPORTED LAST SUMMER THAT BRIDGEPORT CONN YOUTH WORKERS WERE ASSIGNED TO THE SWEAT TEAM BUT INSTEAD OF SIGNIFYING ARDUOUS WORK THE ACRONYM REFERRED TO STUDENTS WHO ENTERTAIN ARTISTIC THOUGHTS IN THE FIRST WEEK OF THEIR JOBS THE WORKERS WENT TO A LOCAL DANCE TOOK A TRIP TO SPIKE LEE'S BLOCK PARTY IN NEW YORK AND HAD A BROTHERHOOD PICNIC THE SUMMER JOBS PROGRAMS CREATE SCORES OF THOUSANDS OF JOBS SIMPLY BY PAYING TEENAGERS TO ATTEND SUMMER SCHOOL IN HOUSTON LAST SUMMER YOUTHS WERE PAID TO PARTICIPATE IN CLASSES IN A MULTICULTURAL CURRICULUM AND LENGTHY DISCUSSIONS ON RACE RELATIONS THE BROWN COUNTY WIS JOBS PROGRAM HAS PAID STUDENTS FOR SITTING IN HIGH SCHOOL DURING THE SUMMER TO MAKE UP THE DETENTION TIME THEY DID NOT SERVE DURING THE SCHOOL YEAR LABOR SECRETARY ROBERT REICH STATES THAT THE JOBS PROGRAM BENEFITS THE LONGTERM UNEMPLOYED BUT MANY OF THE BENEFICIARIES WILL ACTUALLY BE COLLEGE STUDENTS TAKING A BREAK FROM THEIR STUDIES THE LABOR DEPARTMENT INSPECTOR GENERAL REPORTED THAT IN WISCONSIN SOME COLLEGE STUDENTS WERE PLACED ON THE SUMMER JOB PAYROLL WHO WOULD HAVE BEEN HIRED BY GOVERNMENT AGENCIES ANYHOW MR REICH TOUTING THE NEED FOR AN AGGRESSIVE CAMPAIGN OF ACADEMIC ENRICHMENT STRESSES THAT THE EXPANDED SUMMER JOBS PROGRAM WILL FOCUS MORE ON EDUCATING YOUNG PEOPLE BUT A MAJOR 1992 FEDERALLY FUNDED REPORT BY PUBLIC/PRIVATE VENTURES CONCLUDED AFTER ANALYZING EIGHT YEARS OF DATA THAT THE REMEDIAL EDUCATION PROVIDED BY SUMMER JOBS PROGRAMS HAD LITTLE OR NO LONGLASTING IMPACT MR REICH IN A PHONE INTERVIEW MARCH 1 DECLARED THE SUMMER JOBS PROGRAM AN INVESTMENT IN THE GOOD WORK PRACTICES OF YOUNG PEOPLE IN THE PRIVATE SECTOR A YOUNG PERSON KEEPS A JOB BY PRODUCING ENOUGH TO EARN HIS PAY BUT NOT IN THE SUMMER JOBS PROGRAMS LARRY BROWN PUBLIC AFFAIRS DIRECTOR OF THE DC DEPARTMENT OF EMPLOYMENT SERVICES EXPLAINED IN 1989 WE DON'T FIRE ANY OF THE KIDS IT JUST DOESN'T DO ANYTHING TO HELP A 14 OR 15YEAROLD YOUTHS WHO REFUSE TO EXERT THEMSELVES AT ONE JOB SITE ARE SIMPLY TRANSFERRED TO ANOTHER THIS IS NOT UNTYPICAL OF HOW JOBS PROGRAMS RUN NATIONWIDE MR REICH CLAIMS THAT THE EXPANDED SUMMER JOBS PROGRAM WILL RESULT EVENTUALLY IN DECREASED WELFARE BUT THE JOB TRAINING PARTNERSHIP ACT JTPA OF WHICH THE SUMMER JOBS PROGRAM IS A PART MAY HAVE ACTUALLY BOOSTED THE NUMBER OF YOUNG PEOPLE ON THE DOLE THE LABOR DEPARTMENT INSPECTOR GENERAL REPORTED IN 1988 THAT THE PERCENTAGE OF YOUNG JTPA TRAINEES RECEIVING FOOD STAMPS AND GENERAL ASSISTANCE WAS TWICE AS HIGH AFTER JTPA INVOLVEMENT AS BEFORE GOVERNMENT PROGRAMS ROUTINELY DELUGE PEOPLE WITH INFORMATION ON HOW TO APPLY FOR WELFARE AS PART OF THEIR TRAINING FEDERAL TRAINING PROGRAMS HAVE A LONG RECORD OF BLIGHTING YOUNG AMERICANS' ECONOMIC PROSPECTS THE LIBERAL URBAN INSTITUTE CONCLUDED THAT THE COMPREHENSIVE EMPLOYMENT AND TRAINING ACT OR CETA WHICH CONSUMED OVER 35 BILLION BETWEEN 1974 AND 1983 PRODUCED SIGNIFICANT EARNINGS LOSSES FOR YOUNG MEN OF ALL RACES AND NO SIGNIFICANT EFFECTS FOR YOUNG WOMEN LAST MAY A DAMNING SIXYEAR LABOR DEPARTMENTFINANCED STUDY REVEALED THAT YOUNG MALES ENROLLED IN JTPA PROGRAMS HAD SIGNIFICANTLY LOWER EARNINGS THAN A CONTROL GROUP THAT DID NOT PARTICIPATE IN JTPA THE REPORT CONCLUDED THAT FEDERAL TRAINING ACTUALLY REDUCED THE EARNINGS OF MALE OUTOFSCHOOL YOUTHS EMPLOYMENT AND TRAINING REPORTER NEWSLETTER REPORTED ON JAN 20 THAT JON WEINTRAUB STAFF DIRECTOR OF THE HOUSE EDUCATION AND LABOR SUBCOMMITTEE ON LABORMANAGEMENT RELATIONS ASKED THE LABOR DEPARTMENT TO ISOLATE POSITIVE LESSONS THAT CAN BE GLEANED FROM THE REPORT BUT THAT THE DEPARTMENT HAS NOT YET DONE SO MR REICH TOLD CBS ON FEB 3 THAT MR CLINTON'S STIMULUS PACKAGE IS VERY VERY IMPORTANTLY GOING TO BE LABORINTENSIVE WHEREVER THAT MONEY IS GOING IT'S GOING TO CREATE A MULTIPLIER EFFECT BUT THE MAIN THING THAT JOB CREATION PROGRAMS MULTIPLY IS BOONDOGGLES CETA BANKROLLED SUCH JOBCREATING ACTIVITIES AS BUILDING AN ARTIFICIAL ROCK IN OREGON FOR ROCK CLIMBERS TO PRACTICE ON CONDUCTING A NUDE SCULPTURE CLASS IN MIAMI WHERE ASPIRING ARTISTS PRACTICED BRAILLE READING ON EACH OTHER AND SENDING CETA WORKERS DOORTODOOR IN FLORIDA TO RECRUIT PEOPLE FOR FOOD STAMPS ECONOMIST GEORGE E JOHNSON WRITING IN THE BROOKINGS INSTITUTION STUDY CREATING JOBS ESTIMATED THAT THE GROSS NATIONAL PRODUCT LOST 34 CENTS IN THE LONG TERM FOR EVERY DOLLAR SPENT ON PUBLIC SERVICE EMPLOYMENT JOB CREATION THOUGH MR REICH SEEKS TO SHARPLY EXPAND FEDERAL JOBS PROGRAMS THE FEDERAL GOVERNMENT ALREADY HAS 125 DIFFERENT EMPLOYMENT AND TRAINING PROGRAMS ADMINISTERED BY 14 FEDERAL DEPARTMENTS OR INDEPENDENT AGENCIES COSTING TAXPAYERS 163 BILLION A YEAR THE GENERAL ACCOUNTING OFFICE REPORTED LAST JULY THAT THERE ARE 40 PROGRAMS PROVIDING COUNSELING AND ASSESSMENT TO THE ECONOMICALLY DISADVANTAGED AND 34 PROGRAMS PROVIDING THIS GROUP WITH REMEDIAL OR BASIC SKILLS TRAINING GAO FOUND THAT THERE WAS POOR COORDINATION BETWEEN THE PROGRAMS AND CONFUSION AMONG PROGRAMS SERVING THE SAME TARGET GROUPS AT THE SAME TIME THAT MR REICH IS CALLING FOR MASSIVELY EXPANDING SUMMER JOBS PROGRAMS HE IS ALSO ADVOCATING A BOOSTING OF THE FEDERAL MINIMUM WAGE YET ACCORDING TO ECONOMIST CARLOS BONILLA OF THE EMPLOYMENT POLICIES INSTITUTE BOOSTING THE MINIMUM WAGE TO 5 AN HOUR WOULD DESTROY 442000 JOBS HELD BY TEENAGERS AND YOUNG ADULTS MR REICH IS THUS SIMULTANEOUSLY ADVOCATING POLICIES TO DESTROY TEENAGERS' PRIVATE JOBS AND TO ENROLL MORE TEENS IN MAKEWORK PSEUDOJOBS IN THE LONG RUN EVERY MAKEWORK PROGRAM DESTROYS MORE JOBS THAN IT CREATES BECAUSE IT SQUANDERS THE CAPITAL NEEDED TO SUPPORT ALL JOBS IF THE SALE OF BASKETBALL SHOES WERE THE SOLE DETERMINANT OF THE NATION'S ECONOMIC DESTINY IT MIGHT MAKE SENSE TO STIMULATE THE ECONOMY BY GIVING PAYCHECKS TO TEENAGERS TO PLAY BASKETBALL BUT OTHERWISE MR CLINTON'S JOBS PROGRAM IS A JUNKHEAP OF THRICEFAILED POLICIES DECEPTIVE RHETORIC AND POLITICAL OPPORTUNISM MR BOVARD WRITES OFTEN ON PUBLIC POLICY SEE RELATED LETTER LETTERS TO THE EDITOR POOR KIDS NEED SUMMER JOBS WSJ MARCH 30 1993 9303050088 9303310158 930331 WHO'S NEWS MEDIPLEX GROUP INC MEDIPLEX GROUP INC WELLESLEY MASS THIS OPERATOR OF HEALTH CARE FACILITIES ADDED TWO DIRECTORS TO ITS BOARD EXPANDING IT TO SEVEN MEMBERS ELECTED WERE JONATHAN S SHERWIN 41 YEARS OLD AND PRESIDENT OF THE COMPANY AND ROBERT CATALDO 68 PRESIDENT OF SHELDON CORP A HEALTH CARE AND REAL ESTATE CONSULTING CONCERN IN LEXINGTON MASS 9303310157 930331 WHO'S NEWS IPL SYSTEMS INC IPL SYSTEMS INC WALTHAM MASS GREGORY R GRODHAUS 45 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS COMPUTER DISK MAKER HE WAS MOST RECENTLY VICE PRESIDENT AND GENERAL MANAGER OF THE NORTH AMERICAN MIDRANGE SYSTEMS UNIT OF MEMOREX TELEX CORP IN DALLAS MR GRODHAUS SUCCEEDS ROBERT NORTON WHO RESIGNED ON MARCH 1 MR NORTON WILL REMAIN WITH THE COMPANY THROUGH JUNE IN AN ADVISORY CAPACITY AN IPL SPOKESWOMAN SAID 9303310156 930331 WHO'S NEWS ELDEC CORP ELDEC CORP LYNNWOOD WASH PRESIDENT THOMAS K BROWN 62 YEARS OLD WAS ELECTED CHIEF EXECUTIVE AT THIS MAKER OF ELECTRONIC SYSTEMS FOR THE AEROSPACE INDUSTRY HE SUCCEEDS MAX E GELLERT WHO IS RETIRING BUT WILL REMAIN CHAIRMAN 9303310155 930331 POLITICS & POLICY TIMBER SUMMIT TO ATTRACT 30000 PEACEMAKERS IN WAR BETWEEN LOGGERS AND ENVIRONMENTALISTS BY CHARLES MCCOY AND ROSE GUTFELD STAFF REPORTERS OF THE WALL STREET JOURNAL PRESIDENT CLINTON MIGHT WANT TO BRING HIS OWN CHAIN SAW TO THE TIMBER SUMMIT FRIDAY IN PORTLAND ORE HE MIGHT NEED IT TO CUT THROUGH ALL THE HOOPLA ABOUT 30000 LOGGERS ENVIRONMENTALISTS JOURNALISTS AND OTHER INTERESTED PARTIES ARE SET TO DESCEND ON PORTLAND FOR THE SUMMIT MEANT TO START A PEACE PROCESS IN THE NATION'S PROTRACTED WARS OVER WILDLIFE PROTECTION AND LOGGING BONNIE RAITT ONE OF THE PRESIDENT'S FAVORITE SINGERS AND OTHER POP STARS WILL PERFORM SALMON FISHERMEN WILL SEND A FLOTILLA UP THE COLUMBIA RIVER LUMBERJACKS WILL HOLD A MIDNIGHT PRAYER VIGIL MAGICIANS SWORD SWALLOWERS AND JUGGLERS WILL DO THEIR THINGS TOO IT HAS ALL THE ELEMENTS OF A CIRCUS OBSERVES BROCK EVANS VICE PRESIDENT OF THE NATIONAL AUDUBON SOCIETY INDEED THE MUCHANTICIPATED SUMMIT IS SHAPING UP AS A LOT MORE SHOW THAN GO THE GOVERNMENT NO LONGER IS EXPECTED TO PUT FORTH ANY MAJOR INITIATIVES AT THE SUMMIT TO BREAK THE LOGJAM OVER FOREST POLICY A FACT THAT WILL DISAPPOINT MANY IN THE WEST AND THE KIND OF THINGS THAT THE CLINTON TEAM IS LIKELY TO PROMOTE AT THE SUMMIT LIKE JOB RETRAINING FOR DISPLACED LOGGERS AND BROAD ECOSYSTEM MANAGEMENT IN PUBLIC FORESTS THAT WOULD ALLOW SOME LOGGING DON'T ADDRESS SOME OF THE BIGGEST PROBLEMS RIGHT NOW THOSE PROBLEMS INCLUDE SKYHIGH LUMBER PRICES AND HEAVY LOGGING OFTEN WITH BRUTISH LOGGING TECHNIQUES AND HARSH IMPACTS ON WILDLIFE ON PRIVATE TIMBERLANDS THE PRESIDENT'S CALL FOR A TIMBER SUMMIT FULFILLED A CAMPAIGN PLEDGE AND RAISED A LOT OF EXPECTATIONS IN THE WEST WHERE IT WAS SEEN BY MANY ON BOTH SIDES OF THE ISSUE AS A LAST SHOT AT ENDING THE WARFARE OVER WILDLIFE PROTECTION AND LOGGING THAT HAS RAGED SINCE THE SPOTTED OWL WAS DECLARED ENDANGERED IN 1990 IN ADDITION TO MR CLINTON VICE PRESIDENT ALBERT GORE INTERIOR SECRETARY BRUCE BABBITT AND SEVERAL OTHER CABINET OFFICIALS WILL ATTEND ADMINISTRATION OFFICIALS SAY THE CONFERENCE MODELED AFTER DECEMBER'S ECONOMIC GATHERING IN LITTLE ROCK ARK WILL CONSIST OF ROUNDTABLE DISCUSSIONS ON THREE TOPICS WHO IS AFFECTED BY THE TIMBER CRISIS THE ECONOMIC ENVIRONMENTAL AND SOCIOLOGICAL ISSUES INVOLVED IN FORESTRY AND NEW AND INNOVATIVE IDEAS FOR FOREST MANAGEMENT AND ECONOMIC DEVELOPMENT AFTER THE EVENT AN INTERAGENCY TASK FORCE THAT HAS ALREADY BEEN WORKING ON ISSUES RELATED TO THE CONFERENCE WILL HELP DEVELOP A COMPREHENSIVE FORESTMANAGEMENT PLAN ONE AIM WILL BE TO STANDARDIZE THE OFTENCONFLICTING PRACTICES OF THE VARIOUS FEDERAL AGENCIES INVOLVED IN TIMBER POLICY AND TO ASSURE THAT THEY OBEY TIMBERMANAGEMENT AND WILDLIFEPROTECTION LAWS WHICH THEY REPEATEDLY FAILED TO DO DURING THE PAST TWO ADMINISTRATIONS THE CLINTON ADMINISTRATION'S LONGTERM PLAN FOR RESOLVING THE CLASH OVER CUTTING IN THE FEDERAL FORESTS CENTERS ON FIRST GETTING COURT INJUNCTIONS BANNING LOGGING ON MILLIONS OF ACRES OF PUBLIC FOREST LIFTED THAT WON'T BE EASY FEDERAL TIMBER AGENCIES MUST FIRST COME UP WITH A SPOTTED OWLPROTECTION PLAN THAT FEDERAL JUDGES DEEM MEETS LEGAL REQUIREMENTS THE COURTS HAVE REJECTED SEVERAL PREVIOUS PLANS WHICH CAN TAKE MONTHS TO COMPILE AS INADEQUATE MOROVER A JUSTCOMPLETED SURVEY BY FOREST SERVICE BIOLOGISTS HAS FOUND THAT THE NORTHWESTERN ANCIENT FORESTS ARE HOME TO MORE THAN 600 SPECIES MANY OF WHICH ARE SUFFERING THE SCIENTISTS' REPORT CONCLUDES THAT ANY OWLPROTECTION MEASURES SHOULD BE EXPANDED TO ENSURE THAT THOSE OTHER SPECIES ARE PROTECTED AS WELL IT IMPLIES MORE LOGGING RESTRICTIONS THAN THE GOVERNMENT HAS EVER PROPOSED FOR THE ANCIENT FORESTS MR BABBITT HAS PRAISED THE NEW REPORT BUT THE FOREST SERVICE'S CHIEF DALE ROBERTSON HAS BEEN COOL TO IT IN THE LONG RUN THE CLINTON ADMINISTRATION SEEMS HEADED TOWARD ALLOWING SOME CUTTING WHILE SETTING ASIDE ENOUGH HABITAT TO ENSURE THAT HEALTHY FOREST ECOSYSTEMS SURVIVE INTACT INDEED IT'S THE HABITAT STUPID HAS BECOME A CATCH PHRASE AMONG SUMMITGOING ENVIRONMENTALISTS AND SOME ADMINISTRATION AIDES THE GOVERNMENT MAY ALSO TRY TO RESTRICT RAWLOG EXPORTS WHICH HAVE REMAINED HIGH EVEN AS MILLWORKERS HAVE BEEN CAST OUT OF WORK BY THE THOUSANDS BECAUSE OF LOG SHORTAGES WALT MINNICK CHIEF EXECUTIVE OFFICER OF TJ INTERNATIONAL INC A BOISE IDAHO LUMBER COMPANY SAYS THE INDUSTRY SHOULDN'T EXPECT LOGGING ON PUBLIC LANDS TO EVER REACH MORE THAN ABOUT 40 OF THE LEVELS SEEN IN THE 1980S THOSE DAYS ARE GONE FOR GOOD AND WE BETTER FACE REALITY HE SAYS MR MINNICK AND OTHER TIMBER OPERATORS ALSO BELIEVE THEY'LL EVENTUALLY BE REQUIRED TO USE FAR MORE GENTLE LOGGING TECHNIQUES THE ERA OF THOSE BIG CLEARCUTS IS OVER HE SAYS MUCH OF WHAT THE ADMINISTRATION HOPES TO ACHIEVE IN THE FOREST THOUGH WILL TAKE MANY MONTHS AND PROBABLY REQUIRE CONGRESSIONAL ACTION MOREOVER BECAUSE OF THE FACTIONALIZATION IN THE ENVIRONMENTAL COMMUNITY TIMBER HARVESTS WILL STILL BE SUBJECT TO LEGAL CHALLENGE AND PROTEST EVEN IF MAINSTREAM ENVIRONMENTAL GROUPS SIGN ON TO THE NEW APPROACH TIMBER COMPANIES WANT TO SOMEHOW RESTRICT THEIR OPPONENTS ABILITY TO SUE ENVIRONMENTALISTS ARE DEAD SET AGAINST THAT IN THE MEANTIME THE SITUATION IN THE WESTERN FORESTS IS GROWING GRIMMER THE PLUNDER OF PUBLIC TIMBERLANDS HAS SLOWED AND OWLS ARE SAFER BUT THE LOGGING RESTRICTIONS HAVE HELPED DRIVE LUMBER PRICES TO RECORD HIGHS IN RECENT MONTHS THE PRICE OF REDWOOD LOGS IN CALIFORNIA FOR EXAMPLE HAS SOARED TO 900 PER 1000 BOARD FEET MORE THAN DOUBLE YEAREARLIER PRICES TO DATE THE INCREASED COSTS HAVEN'T SEEMED TO HAVE MUCH IMPACT ON THE GENERAL ECONOMY BECAUSE HOME SALES HAVE BEEN RELATIVELY SLOW AND BUILDERS HAVEN'T BEEN ABLE TO PASS ON THEIR INCREASED LUMBER COSTS TO CONSUMERS THE SURGING PRICES HOWEVER HAVE SPURRED HEAVY LOGGING ON PRIVATE LANDS AND PROMPTED MANY HOLDERS OF SMALLER TIMBER PARCELS TO SELL THEM OFF FOR LOGGING IT'S A GREAT IRONY BUT A LOT OF TREES THAT WOULD HAVE STOOD FOREVER ARE COMING DOWN BECAUSE OF HIGH PRICES AND THE FEAR LANDOWNERS HAVE THAT THEY MIGHT NEVER BE ABLE TO LOG SAID DON BEATY A TIMBERLAND MANAGER AND FORESTRY CONSULTANT IN REDDING CALIF MOREOVER BECAUSE THE COSTS OF MEETING TIMBERHARVESTING REGULATIONS AND ACQUIRING PERMITS HAVE SOARED IN THE PAST FEW YEARS TO ABOUT 8000 FROM ABOUT 1500 FOR A STATEREQUIRED TIMBERHARVEST PLAN IN CALIFORNIA MR BEATY ESTIMATES LANDOWNERS WHO DO DECIDE TO CUT ARE HAVING TO CUT MORE TO MAKE ANY PROFIT AARON SMYTHE'S FAMILY OWNS 160 ACRES IN MENDICINO COUNTY IN CALIFORNIA'S REDWOOD COUNTRY HE CONSIDERS HIMSELF AN ENVIRONMENTALIST BUT HE RECENTLY SOLD TIMBER RIGHTS TO 35 ACRES LOGGING WILL START SOON WE DIDN'T WANT TO CUT THOSE TREES BUT I'VE GOT TAXES TO PAY AND THE PRICES TREES CAN COMMAND RIGHT NOW ARE UNBELIEVABLE HE SAYS IF I DON'T CUT NOW I MIGHT NEVER BE ABLE TO 9303310154 930331 TECHNOLOGY & HEALTH GENENTECH SEEKS LICENSE TO SELL DRUG FOR CYSTIC FIBROSIS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SOUTH SAN FRANCISCO CALIF GENENTECH INC ASKED REGULATORS TO APPROVE THE MARKETING OF A GENETICALLY ENGINEERED DRUG THAT CLEARS THE AIRWAYS OF PEOPLE WITH CYSTIC FIBROSIS THE BIOTECHNOLOGY COMPANY FILED SIMULTANEOUS PRODUCT LICENSE APPLICATIONS WITH THE US FOOD AND DRUG ADMINISTRATION AND WITH REGULATORY AGENCIES IN EUROPE AND CANADA REGULATORY HEARINGS COULD BE SCHEDULED AS EARLY AS THIS SUMER THE COMPANY SAID CYSTIC FIBROSIS IS AN INHERITED DISEASE IN WHICH LUNG CONGESTION LEADS TO FREQUENT INFECTIONS OBSTRUCTED BREATHING AND DEATH IN YOUNG ADULTHOOD AN ESTIMATED 30000 AMERICANS 3000 CANADIANS AND 20000 EUROPEANS HAVE THE CONDITION THE AVERAGE LIFESPAN OF SUCH PATIENTS IS 29 YEARS THE DRUG DNASE ALSO KNOWN AS PULMOZYME ISN'T BILLED AS A CURE BUT IN A STUDY OF 968 PATIENTS THE TREATMENT REDUCED THE INCIDENCE OF RESPIRATORY INFECTION AND IMPROVED LUNG FUNCTION THE DRUG'S CREATION BY GENENTECH SCIENTIST STEVEN SHAK GREW OUT OF HIS REDISCOVERY OF A 30YEAROLD SCIENTIFIC OBSERVATION THAT THE LUNG SECRETIONS OF CYSTIC FIBROSIS PATIENTS CONTAIN ABNORMAL AMOUNTS OF DEOXYRIBONUCLEIC ACID OR DNA THE RAW MATERIAL OF GENES THE DNA IS DEPOSITED IN THE LUNGS BY WHITE BLOOD CELLS THAT RUSH TO FIGHT INFECTIONS AND DIE IN BATTLE THESE DEPOSITS CREATE VISCOUS CONGESTION THAT MAKES CYSTIC FIBROSIS SO DIFFICULT TO TREAT DNASE IS A GENESPLICED VERSION OF A HUMAN ENZYME THAT CHEWS UP THE EXCESS DNA RENDERING THE STICKY LUNG SECRETIONS MORE LIQUID AND ENABLING PATIENTS TO CLEAR THEIR BREATHING PASSAGES MORE EASILY ANALYSTS NOTE THAT THE DRUG'S INITIAL MARKET FOR CYSTIC FIBROSIS IS LIMITED BUT IF DNASE SUCCEEDS THEY EXPECT GENENTECH TO TRY TO ADOPT A BROADER MARKETING STRATEGY AIMED AT MORE COMMON LUNG AILMENTS SUCH AS CHRONIC BRONCHITIS 9303310153 930331 INTERNATIONAL NEWCAR SALES FELL 17 IN FEBRUARY IN WESTERN EUROPE BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS FEBRUARY NEWCAR SALES IN WESTERN EUROPE PLUNGED 17 CONTINUING JANUARY'S STEEP DOWNTURN AND HEADING 1993 TOWARD WHAT SOME IN THE INDUSTRY SAY COULD BE ITS SHARPEST SALES DECLINE IN NEARLY TWO DECADES CAR REGISTRATIONS IN FEBRUARY TOTALED 921257 DOWN FROM THE YEAREARLIER 1105595 ACCORDING TO ANALYSE AUTO AN ANTWERP BELGIUM CONSULTING CONCERN THAT BROUGHT THE TWOMONTH TOTAL TO 1874414 DOWN 204 FROM A YEAR EARLIER THE FIGURES REFLECT ESTIMATED AND OFFICIALLY REPORTED REGISTRATIONS FOR 17 WEST EUROPEAN COUNTRIES IF CAR SALES CONTINUE THE TREND SO FAR THIS YEAR AND VOLKSWAGEN AG FOR ONE IS FORECASTING A 15 MARKET RETRACTION FOR ALL OF 1993 THEN THE PLUNGE COULD BE THE WORST SINCE 1974 ACCORDING TO PETER SCHMIDT OF AUTO INDUSTRY DATA LTD A BRITISH CONSULTING FIRM THAT YEAR UNDER THE WEIGHT OF AN OIL CRISIS CAR SALES IN WESTERN EUROPE SLUMPED 139 MR SCHMIDT SAYS AUTO MAKERS HAVE BEEN ANTICIPATING THE DOWNTURN BY KEEPING A TIGHT REIN ON PRODUCTION AND SCHEDULING TEMPORARY PLANT CLOSINGS TO HOLD INVENTORIES DOWN VW WHICH IS EXPECTED TODAY TO GIVE FURTHER DETAILS OF ITS PLANNED RESTRUCTURING ALREADY HAS EXTENDED SHORT WORKING SHIFTS INTO THE SECOND QUARTER IN FEBRUARY VW'S SALES DECLINED 19 TO 147948 CARS FOR THE FIRST TWO MONTHS ITS SALES WERE DOWN 219 TO 302963 UNITS THAT IS PARTLY BECAUSE FEBRUARY REGISTRATIONS IN GERMANY VW'S BIGGEST MARKET SHRANK BY ONEQUARTER BUT ALSO VW'S SPANISH UNIT WAS HURT BY SPAIN'S 304 DECLINE IN FEBRUARY SALES AND EVEN THE HIGHFLYING LUXURY AUDI UNIT'S SALES WERE OFF BY ONETHIRD IN FEBRUARY FROM A YEAR EARLIER VIC HEYLEN MANAGING DIRECTOR OF ANALYSE AUTO SAID THE FACT THAT MANY NEW MODELS ARE COMING OUT MAY BE ADDING TO THE IMPACT OF THE RECESSION CITING THE FORD MONDEO THE CITROEN XANTIA THE OPEL CORSA AND THE ROVER 600 HE OBSERVES THAT SOME CAR BUYERS MAY BE WAITING FOR THE NEW MODELS BECAUSE OF A 23 SALES DECLINE IN THE FIRST TWO MONTHS THE EUROPEAN OPERATIONS OF GENERAL MOTORS CORP DROPPED FROM ITS NO 2 EUROPEWIDE RANKING OF LAST YEAR TO NO 4 BEHIND NO 2 FIAT SPA AND NO 3 PSA PEUGEOT CITROEN SA AMONG EUROPE'S MAJOR CAR MARKETS ONLY BRITAIN POSTED A SALES INCREASE FOR FEBRUARY 16 TO 126984 CONTINUING A MODEST RECOVERY THAT STARTED LATE LAST YEAR 9303310152 930331 INTERNATIONAL SECURITY TENSIONS RISE IN SOUTHEAST ASIA SUSPICIONS SIMMER PRIVATELY AS DEFENSES ARE ALTERED BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE CONSCRIPTS IN SINGAPORE'S ARMED FORCES HUDDLE IN A PELTING TROPICAL RAIN AS A MORTAR SHELL SLAMS TO EARTH IN A TRAINING EXERCISE JUST ACROSS A NARROW CAUSEWAY FROM MALAYSIA BECAUSE IT IS SO SMALL THIS ISLAND CITYSTATE CONDUCTS MILITARY EXERCISES WITHIN SIGHT OF ITS NORTHERN NEIGHBOR'S PALMLINED SHORES PUBLICLY THE TWO COUNTRIES ARE AS FRIENDLY AS THEY ARE CLOSE PRIVATELY SUSPICIONS SIMMER MALAYSIANS COMPLAIN THAT SINGAPORE'S MILITARY RECONNOITERS IN THE ADJACENT MALAYSIAN STATE OF JOHOR SINGAPOREANS GRUMBLE THAT MALAYSIA IS VYING TO OUTGUN THEM WITH SOPHISTICATED WEAPONS SUCH SUBTLE FRICTIONS ARE ON THE RISE THROUGHOUT SOUTHEAST ASIA THEIR ROOTS LIE IN THE REGION'S LONG RECORD OF PEACE AND PROSPERITY THE ABSENCE OF MAJOR CONFLICT IN SOUTHEAST ASIA IN RECENT YEARS MADE IT EASIER FOR THE COSTCONSCIOUS US MILITARY TO WITHDRAW MUCH OF ITS PERMANENT PRESENCE THRUSTING RESPONSIBILITY FOR KEEPING THAT PEACE ONTO ASIA'S NEWLY PROSPEROUS COUNTRIES THE US FORCES CAN STILL OPERATE ANYWHERE OF COURSE SAYS MALAYSIA'S DEFENSE MINISTER DATUK MOHAMED NAJIB ABDUL RAZAK WHO IS MULLING WHETHER TO STIFFEN MALAYSIA'S AIR FORCE WITH NEW RUSSIAN MIG29 FIGHTERS OR AMERICAN F16S BUT REGIONAL POWERS WILL BE EXPECTED TO PLAY A MUCH MORE INFLUENTIAL ROLE THIS IS A NATURAL PROCESS LAST YEAR MORE THAN 25000 US MILITARY PERSONNEL LEFT ASIA MOSTLY BECAUSE OF BASE CLOSINGS IN THE PHILIPPINES THE US RETAINS LANDING RIGHTS AND FACILITIES IN SEVERAL NATIONS ALARMED BY EVENTS SUCH AS NORTH KOREA'S RECENT THREAT TO QUIT THE NUCLEAR NONPROLIFERATION TREATY MANY SOUTHEAST ASIAN COUNTRIES THAT IN THE PAST FOCUSED ON INTERNAL INSURGENCY ARE REVAMPING DEFENSES TO GUARD AGAINST EXTERNAL THREATS THAT US FORCES ONCE MIGHT HAVE HANDLED EVERYBODY IS WONDERING WHO WILL FILL THIS POWER VACUUM SAYS AN OFFICIAL AT JAPAN'S FOREIGN MINISTRY FOR THE POWERFUL THE DIMINISHING US PRESENCE CREATES OPPORTUNITIES TO WIDEN THEIR INFLUENCE LONGTIME ADVERSARIES TAIWAN AND CHINA HAVE SUBSTANTIALLY SCALED UP ACQUISITIONS OF POWERPROJECTING WEAPONS TAIWAN BOUGHT WESTERN FIGHTER JETS AND SUBMARINES WHILE CHINA CUT DEALS FOR RUSSIAN PLANES BEIJING TALKS OF ACQUIRING OR BUILDING AN AIRCRAFT CARRIER AND ITS NATIONAL PEOPLE'S CONGRESS RECENTLY UNDERSCORED CHINA'S COMMITMENT TO A MODERN MILITARY BY BOOSTING DEFENSE SPENDING THIS YEAR BY 15 FEARS THAT A BIG POWER LIKE CHINA OR JAPAN OR EVEN INDIA MIGHT EXPLOIT THE SHRINKING US PRESENCE AND BECOME MORE ASSERTIVE RATTLE THE REGION'S SMALLER COUNTRIES ESPECIALLY THOSE THAT HAVE PROSPERED IN RECENT YEARS NEIGHBORS CAN BE THE CLOSEST OF FRIENDS BUT BECAUSE YOU ARE SO CLOSE THERE CAN BE DIFFERENCES SAYS SINGAPORE'S DEFENSE MINISTER YEO NING HONG DIPLOMATS ARE SCRAMBLING TO CONTAIN THOSE DIFFERENCES WITHIN SOME KIND OF SECURITY FORUM IN EUROPE WHERE THE US AND THE FORMER SOVIET UNION SQUARED OFF FOR DECADES A NUMBER OF ORGANIZATIONS FROM THE NORTH ATLANTIC TREATY ORGANIZATION TO THE EUROPEAN COMMUNITY HOLD REGULAR SECURITY TALKS IN ASIA WHERE FOUR MAJOR POWERS THE US RUSSIA CHINA AND JAPAN ARE REPRESENTED AND AT LEAST FIVE COUNTRIES COUNTING INDIA AND THE FORMER SOVIET REPUBLIC OF KAZAKHSTAN POSSESS NUCLEAR WEAPONS THE ONLY REGULAR SECURITY TALKS ARE HELD AFTER THE ANNUAL ASSOCIATION OF SOUTHEAST ASIAN NATIONS SUMMIT THOUGH THAT FORUM LEAVES OUT SOME OF THE BIG POWERS IT ENCOURAGES ASIAN COUNTRIES TO SOLVE THEIR OWN PROBLEMS TO THE MAJOR POWERS WE SAY YOU ARE HERE YOU HAVE A RIGHT TO BE HERE WE WANT YOU TO REMAIN SAYS ALI ALATAS INDONESIA'S FOREIGN MINISTER WHO WANTS TO MAKE THE REGION A NUCLEARFREE ZONE WE DON'T DENY YOUR LEGITIMATE INTERESTS BUT WE ASK THAT YOU DON'T AUTOMATICALLY INTERFERE YOU GET MIRED IN OUR PROBLEMS AND WHAT DO YOU SOLVE NOTHING MR ALATAS AND OTHER OFFICIALS IN SOUTHEAST ASIA THINK THE REGION'S SECURITY CONCERNS ARE SO DIVERSE THAT A SERIES OF BILATERAL TALKS WOULD SERVE BETTER THAN A MULTILATERAL FORUM THE BEST DEFENSE IS TO BUILD UP FRIENDLY RELATIONS SAYS CHAN CHENG HEE DIRECTOR OF SINGAPORE'S INSTITUTE OF SOUTHEAST ASIAN STUDIES SMALL STATES NEED BIG FRIENDS YET THE REGION IS SO RIFE WITH LATENT TENSIONS THAT PROBLEMS MAY ARISE EVEN WITHIN FRIENDLY GROUPINGS SOUTHEAST ASIA IS RIDDLED WITH TERRITORIAL DISPUTES SOME OVER MERE ATOLLS THAT MIGHT OR MIGHT NOT SIT ASTRIDE VALUABLE OIL AND GAS DEPOSITS THE MOST LIKELY FLASHPOINT IS THE SPRATLY ISLANDS A CHAIN OF LAND SPECKS IN THE SOUTH CHINA SEA MOST NOT BIG ENOUGHO INHABIT CLAIMED BY CHINA TAIWAN MALAYSIA THE PHILIPPINES VIETNAM AND EVEN TINY BRUNEI IN 1988 CHINA SANK TWO VIETNAMESE NAVAL VESSELS NEAR ONE OF THE ISLANDS 14 YEARS AFTER IT SNATCHED THE NEARBY PARACEL ISLANDS FROM SAIGON NOT LONG AFTER TAIWAN ISSUED A SHARP WARNING OF ITS OWN TO VIETNAM MALAYSIA AND THE PHILIPPINES HAVE SHORED UP CORAL ATOLLS THEY OCCUPY WHAT MAKES THE SPRATLYS SO ATTRACTIVE IS A RECENT REVISION OF THE INTERNATIONAL LAW OF THE SEA GIVING AN INHABITED TERRITORY ECONOMIC SOVEREIGNTY OVER ITS CONTINENTAL SHELF AND LARGE SECTIONS OF SURROUNDING WATERS FOR ARCHIPELAGO NATIONS SUCH AS INDONESIA OR THE PHILIPPINES IT HAS MEANT CONSIDERABLE NEW AREAS TO PATROL IT IS A KEY REASON JAKARTA CITES FOR SPENDING 120 MILLION LAST YEAR TO BUY 39 NAVY VESSELS THAT HAD COMPRISED MUCH OF THE FORMER EAST GERMANY'S FLEET IT HAS ALSO RAISED THE VALUE OF CONTROL OF THE SPRATLYS WITH THEIR POTENTIALLY RICH OIL RESOURCES BOTH VIETNAM AND CHINA HAVE SIGNED WITH WESTERN FIRMS TO EXPLORE FOR OIL NEAR THE ISLANDS THEY CLAIM SUCH TERRITORIAL DIFFERENCES CONTRIBUTE TO THE UNCERTAINTY IN SOUTHEAST ASIA IN COMBINATION WITH THE PROSPERITY BROUGHT ABOUT BY RAPID DEVELOPMENT THAT UNCERTAINTY CAUSES MANY COUNTRIES TO MODERNIZE THEIR ARSENALS YET ASIAN COUNTRIES MAY BECOME MIRED IN WHAT MR ALATAS THE INDONESIAN FOREIGN MINISTER CALLS COUNTERPRODUCTIVE ARMS RACES CHINA AND TAIWAN ARE SPENDING BILLIONS OF DOLLARS TO BEEF UP THEIR ARSENALS MOST SOUTHEAST ASIAN COUNTRIES ALSO ARE SNAPPING UP MODERN WEAPONS THE ONLY NOTABLE EXCEPTION IS INDIA WHICH IS CURTAILING DEFENSE SPENDING TO HELP CONTAIN A SPIRALING FISCAL DEFICIT IT'S EVERY BIT AS MUCH AN ARMS RACE AS THE EASTWEST ARMS RACE IN EUROPE EXCEPT THERE AREN'T JUST TWO SIDES SAYS GERALD SEGAL OF LONDON'S INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES MANY REGIONAL OFFICIALS BELIEVE THE GREATEST SOURCE OF STABILITY WILL CONTINUE TO BE THE US NOT ONLY AS A REGIONAL POWER BUT AS AN ARMS MERCHANT BUT OFFICIALS WORRY THAT WASHINGTON MAY NOT BE ABLE TO RESIST PRESSURES TO WITHDRAW FURTHER WE ARE APPREHENSIVE THAT WITH DOMESTIC PRESSURES BACK HOME THE NEW ADMINISTRATION MAY FIND ITSELF LESS WILLING TO CONTINUE TO PRESERVE A SIGNIFICANT PRESENCE IN THIS PART OF THE WORLD SAYS MR YEO SINGAPORE'S DEFENSE MINISTER INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES 9303310151 930331 ECONOMY HELPWANTED ADS ROSE TO HIGHEST LEVEL IN NEARLY TWO YEARS NEW YORK HELPWANTED ADVERTISING ROSE TO ITS HIGHEST LEVEL IN NEARLY TWO YEARS SUGGESTING SOME RISE IN HIRING MAY BECOME EVIDENT BEFORE SPRING ENDS THE CONFERENCE BOARD SAID THE SEASONALLY ADJUSTED INDEX WHICH USES THE 1967 LEVEL AS A BASE OF 100 ROSE TO 98 IN FEBRUARY AFTER HOVERING BETWEEN 90 AND 95 FOR THE PAST TWO YEARS THE INDEX ROSE SIX POINTS FROM JANUARY'S REVISED 1992 FIGURE AND STANDS AT EIGHT POINTS ABOVE THE YEAREARLIER READING THE FIGURES ARE BASED ON A SURVEY OF HELPWANTED ADVERTISING IN 51 MAJOR US NEWSPAPERS HELPWANTED AD VOLUME HAS PROVED TO BE SENSITIVE TO LABOR MARKET CONDITIONS WHILE TOO MUCH SHOULD NOT BE MADE OF JUST ONE MONTH'S DATA NEVERTHELESS THIS INDICATOR HAS FINALLY BROKEN OUT OF THE EXTREMELY NARROW RANGE SUSTAINED FOR ALMOST TWO YEARS SAID KEN GOLDSTEIN CONFERENCE BOARD ECONOMIST HE SAID HE COULDN'T REMEMBER ANOTHER TIME IN THE PAST 20 YEARS WHEN THE INDEX HAS STAYED THIS STABLE THIS LONG HELPWANTED AD VOLUME IS SUGGESTING THAT JOB ADVERTISING IS BEGINNING TO RECOVER HE SAID ADDING THAT SOME RISE IN HIRING MAY BECOME EVIDENT BEFORE THE END OF THIS SPRING HE SAID THERE IS A CHANCE THIS IS THE THING WE'VE BEEN LOOKING FOR A RECOVERY THAT FINALLY SPILLS SOME MOMENTUM INTO THE LABOR MARKET MIGHT BE AT HAND ACCORDING TO THE SURVEY THE EAST SOUTH CENTRAL AND SOUTH ATLANTIC REGIONS RECORDED MORE THAN 20 INCREASES IN AD VOLUME OVER THE LATEST THREEMONTH PERIOD A STRONG RECOVERY APPEARS TO BE UNDER WAY IN THE MIDWEST REGIONS ALTHOUGH GAINS WERE A LITTLE MORE MODEST BUT THE HARDHIT PACIFIC REGION CONTINUES TO SHOW DECLINES IN AD VOLUME THE LEGACY OF CORPORATE DOWNSIZING MAY WELL KEEP THE LABOR MARKET RECOVERY IN THE NORTHEAST AND PACIFIC REGION FROM DEVELOPING ANY SIGNIFICANT MOMENTUM AND IT COULD TAKE A LONG TIME BEFORE THE RECOVERY IS COMPLETED MR GOLDSTEIN SAID THE CONFERENCE BOARD IS A NONPROFIT BUSINESS SUPPORTED RESEARCH ORGANIZATION 9303310150 930331 TREASURY PLANS TO SELL 224 BILLION OF BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 350 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 224 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2275 BILLION THE TREASURY SAID HOWEVER THAT IT WILL POSTPONE THE AUCTION IF CONGRESS DOESN'T INCREASE THE DEBT CEILING BY THE AUCTION DATE THE BILLS ARE SCHEDULED TO SETTLE APRIL 8 ONE DAY AFTER THE TREASURY HAS ESTIMATED IT WILL RUN OUT OF AUTHORITY TO BORROW UNDER DEBT CEILING RESTRICTIONS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING JULY 8 1993 AND OCT 7 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794E75 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794F90 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9303310149 930331 INTERNATIONAL US MAY PRESS FOR GLOBAL BOYCOTT OF LIBYAN OIL BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SECRETARY OF STATE WARREN CHRISTOPHER SAID THE US MAY PUSH FOR A WORLDWIDE BOYCOTT OF LIBYAN OIL IF THAT NATION CONTINUES TO REFUSE TO TURN OVER SUSPECTS ACCUSED OF BLOWING UP A US AIRLINER BUT THE CLINTON ADMINISTRATION LIKE THE BUSH ADMINISTRATION MAY FIND IT DIFFICULT TO ENLIST THE SUPPORT OF ITS EUROPEAN ALLIES WHICH PURCHASE MUCH OF LIBYA'S OIL IT IS UNDERSTOOD THAT IN RECENT CONSULTATIONS WITH THE US SOME ALLIES ARE DISCUSSING OTHER SANCTIONS INCLUDING A WORLDWIDE BAN ON SALES OF OIL TECHNOLOGY EQUIPMENT TO LIBYA OR POSSIBLY A FREEZE ON LIBYA'S FINANCIAL ASSETS IN 1986 THE US BLOCKED LIBYA'S ASSETS IN THE US THE UNITED NATIONS IS SET TO CONDUCT A REVIEW PERHAPS AS SOON AS NEXT WEEK OF THE SANCTIONS IT IMPOSED AGAINST LIBYA LAST APRIL ONE OF THE THINGS WE WANT TO TALK ABOUT IS AN OIL EMBARGO MR CHRISTOPHER SAID AT A HEARING BEFORE A SENATE APPROPRIATIONS SUBCOMMITTEE I THINK THE TIME HAS COME TO STIFFEN THE EMBARGO AGAINST LIBYA MR CHRISTOPHER SAID LIBYA HAS MADE NUMEROUS ATTEMPTS TO TRY TO RESOLVE ITS PROBLEMS WITH THE US I DON'T KNOW HOW MANY INDIVIDUALS HAVE COME TO US AND SAID THEY WANTED TO BE AN INTERMEDIARY HE SAID WELL WE DON'T NEED ANY INTERMEDIARY WHAT WE NEED IS COMPLIANCE WITH THE UN RESOLUTION THE UN SANCTIONS WHICH INCLUDE A BAN ON FLIGHTS TO AND FROM THE COUNTRY CUTS IN LIBYAN DIPLOMATIC MISSIONS AND AN ARMS EMBARGO WERE IMPOSED BECAUSE TRIPOLI HAS REFUSED TO TURN OVER SUSPECTS ACCUSED OF BLOWING UP A US AND A FRENCH AIRLINER THE US PLANE PAN AM 103 WENT DOWN IN 1988 OVER SCOTLAND KILLING 270 PEOPLE MANY OF THEM US COLLEGE STUDENTS THE FRENCH PLANE WAS A UTA AIRLINER THAT EXPLODED IN 1989 OVER NIGER DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON PLEDGED TO THE FAMILIES OF THE VICTIMS OF PAN AM 103 TO STRENGTHEN INTERNATIONAL SANCTIONS AND TO MAKE CLEAR TO TERRORISTS THAT SUCH COWARDLY ACTS ON INNOCENT CIVILIANS ARE UNACCEPTABLE AND WILL NOT BE TOLERATED 9303310148 930331 MAYTAG UK UNIT FINDS A PROMOTION IS TOO SUCCESSFUL HOOVER'S AIRLINETICKET OFFER TO APPLIANCE BUYERS TOPS ITS BUDGET BY 488 MILLION BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL A MAYTAG CORP PROMOTIONAL EFFORT IN THE UNITED KINGDOM SPUN OUT OF CONTROL COSTING 488 MILLION MORE THAN THE COMPANY HAD BUDGETED THE MARKETING FIASCO WHICH OFFERED APPLIANCE BUYERS FREE AIRLINE TICKETS ALSO COST THE EUROPEAN DIVISION'S TOP EXECUTIVE AND TWO OTHER OFFICIALS THEIR JOBS THE APPLIANCE MAKER BASED IN NEWTON IOWA SAID IT WILL TAKE A 30 MILLION CHARGE IN THE FIRST QUARTER TO COVER UNEXPECTED ADDITIONAL COSTS LINKED TO THE FLAWED PROMOTION ESSENTIALLY THE PROMOTIONS WERE TOO SUCCESSFUL SAID A MAYTAG SPOKESMAN THE RESPONSE WAS MUCH GREATER THAN ANTICIPATED AND THE COMPLICATED PLAN WASN'T DESIGNED TO SUPPORT THE NUMBER OF APPLIANCE BUYERS WHO WANTED TO PARTICIPATE ABOUT 200000 PEOPLE FILLED OUT FORMS SEEKING TICKETS AND THE VOLUME OF THE CORRESPONDENCE HAS CREATED A BOTTLENECK IN WHICH MOST CONSUMERS HAVEN'T YET RECEIVED ANY RESPONSE THE SPOKESMAN ALSO CONCEDED THAT IT'S NOT 100 CLEAR THAT ALL ELIGIBLE BUYERS WILL RECEIVE THEIR FREE FLIGHTS FROM LAST AUGUST THROUGH JANUARY MAYTAG RAN TWO SEPARATE PROGRAMS USING THE FREETICKET LURE UNDER THE PLANS CONSUMERS IN BRITAIN AND SOUTHERN IRELAND WHO BOUGHT HOOVER APPLIANCES WERE ELIGIBLE FOR A PAIR OF ROUNDTRIP TICKETS TO DESTINATIONS IN EITHER EUROPE OR THE US HOOVER LTD A MAYTAG UNIT SINCE 1988 SELLS A VARIETY OF FLOORCARE PRODUCTS AND OTHER APPLIANCES IN EUROPE PRIMARILY IN THE UK THE PROGRAMS WERE ARRANGED IN COOPERATION WITH TWO TRAVEL AGENCIES THE AGENCIES WERE TO OBTAIN LOWCOST SPACEAVAILABLE TICKETS AND WOULD HELP MAYTAG SUPPORT THE EXPENSE BY EARNING COMMISSIONS ON LAND PACKAGES SUCH AS CAR RENTAL AND HOTELS AT THE DESTINATION BUT THE PLAN WAS OVERWHELMED BY THE BIGGERTHANEXPECTED RESPONSE COUPLED WITH A MUCH SMALLERTHANANTICIPATED FALLOUT RATE OF WOULDBE TRAVELERS WHO IN ONE FASHION OR ANOTHER HADN'T MET THE REQUIREMENTS OF THE PROMOTION TO MAKE MATTERS WORSE THE AGENCIES' SALE OF LAND PACKAGES WAS FAR BELOW EXPECTATIONS THE MAYTAG SPOKESMAN SAID WHICH HAD THE EFFECT OF GREATLY REDUCING SUPPORT MONEY FOR THE VENTURE HOOVER HAD SET ASIDE RESERVES TO COVER THE PROMOTIONS MAYTAG NOTED THE SPOKESMAN COULDN'T SAY HOW MUCH BUT IT RECENTLY BECAME CLEAR THE COSTS WOULD BE MUCH GREATER THE COMPANY SAID IT HAS ASSIGNED A TASK FORCE THAT IS TO FIND A SOLUTION IN KEEPING WITH HOOVER'S COMMITMENT TO ITS CUSTOMERS DETAILS OF HOW PEOPLE WAITING FOR PROMISED TRIPS WILL FARE WILL BE ANNOUNCED SHORTLY THE COMPANY SAID THE FIRSTQUARTER CHARGE WILL TRIM MAYTAG'S PERSHARE EARNINGS BY 28 CENTS IN THE YEARAGO PERIOD MAYTAG HAD NET OF 285 MILLION OR 27 CENTS A SHARE MAYTAG SAID YESTERDAY THAT IT FIRED WILLIAM R FOUST AS MANAGING DIRECTOR OF HOOVER LTD AND PRESIDENT OF HOOVER EUROPE HE IS SUCCEEDED BY GERALD J KAMMAN FORMERLY THE HEAD OF MAYTAG'S VENDINGEQUIPMENT OPERATION THE COMPANY ALSO DISMISSED HOOVER'S UK VICE PRESIDENT OF MARKETING BRIAN WEBB AND THE EUROPEAN OPERATION'S DIRECTOR OF MARKETING SERVICES MICHAEL GILBEY ASKED WHO APPROVED THE ILLCONCEIVED PLAN MAYTAG'S SPOKESMAN SAID OPERATING DIVISIONS ARE PRIMARILY RESPONSIBLE FOR THEIR PROMOTIONAL EXPENSES THE PARENT REVIEWS SUCH OUTLAYS BUT IF THEY'RE WITHIN PARAMETERS IT GOES THROUGH HE SAID HOOVER HAS PROVIDED DISAPPOINTING RESULTS FOR ITS PARENT SINCE MAYTAG ACQUIRED IT TO ESTABLISH A EUROPEAN BEACHHEAD LAST YEAR A 55 MILLION PRETAX CHARGE FOR REORGANIZATION HELPED PUSH THE EUROPEAN APPLIANCES OPERATION INTO A 671 MILLION OPERATING LOSS ON SALES OF 4955 MILLION 9303310147 930331 INTERNATIONAL MUBARAK ACCUSES GROUP OF FUNDING VIOLENCE IN EGYPT BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL CAIRO EGYPTIAN PRESIDENT HOSNI MUBARAK ACCUSED AN ISLAMIC CHARITY GROUP IN THE NEW YORK AREA OF FUNDING ANTIGOVERNMENT VIOLENCE IN EGYPT THE GROUP WHICH HAS AN OFFICE IN BROOKLYN AND MANY FOLLOWERS IN NORTHERN NEW JERSEY WAS FOUNDED IN THE MID1980S TO RAISE MONEY FOR THE ISLAMIC INSURGENCY IN AFGHANISTAN BUT SOME MUSLIMS IN BROOKLYN HAVE SAID THE GROUP HAS EVOLVED INTO AN UMBRELLA ORGANIZATION FOR RADICAL ISLAMIC MOVEMENTS ACROSS THE ARAB WORLD AT LEAST TWO OF THE FIVE SUSPECTS ARRESTED IN CONNECTION TO THE WORLD TRADE CENTER BOMBING HAD CLOSE TIES TO THE BROOKLYN CHARITY LEADING SOME US INVESTIGATORS TO BELIEVE THE GROUP MAY HAVE BEEN THE NUCLEUS OF A MILITANT ISLAMIC CELL THE GROUP IS KNOWN AS THE BROOKLYN JIHAD OFFICE AND SOME OF ITS MEMBERS HAVE TIES TO SHEIK OMAR ABDELRAHMAN SHEIK OMAR IS A BLIND EGYPTIAN CLERIC WHO LIVES IN JERSEY CITY NJ AND IS BEING INVESTIGATED IN CONNECTION WITH THE NEW YORK BOMBING HE HAS DENIED ANY KNOWLEDGE OF THE EXPLOSION MR MUBARAK IN AN INTERVIEW WITH CABLE NEWS NETWORK BEFORE LEAVING YESTERDAY ON A TRIP TO EUROPE AND THE US DIDN'T SPECIFY HIS EVIDENCE THAT AN ASSOCIATION IN NEW JERSEY COLLECTING A LOT OF MONEY FOR THE REFUGEES IN AFGHANISTAN HAS BEEN AIDING EXTREMISTS IN EGYPT BUT THE INFORMATION IS LIKELY TO HAVE COME FROM MAHMUD ABOUHALIMA THE SUSPECTED RINGLEADER OF THE WORLD TRADE CENTER BOMBING WHO WAS ARRESTED AND INTERROGATED EARLIER THIS MONTH IN EGYPT AFTER FLEEING THE US ACCORDING TO NEW YORKAREA MUSLIMS MR ABOUHALIMA HELPED RUN THE AFGHAN CHARITY UNTIL 1991 WHEN ITS FOUNDER AN EGYPTIAN IMMIGRANT NAMED MUSTAFA SHALABI WAS MURDERED THE KILLING FOLLOWED A BITTER FEUD BETWEEN MR SHALABI AND SHEIK OMAR OVER USE OF THE CHARITY'S FUNDS US LAWENFORCEMENT OFFICIALS AND NEW YORK MUSLIMS HAVE SAID MR ABOUHALIMA WAS ALSO A CLOSE AIDE TO SHEIK OMAR 9303310146 930331 LEISURE & ARTS BOOKSHELF DEVIOUS DEDUCTIONS DEDUCED DIDACTICALLY BY STANLEY W ANGRIST IF I WROTE THAT I WAS GOING TO REVIEW A BOOK THAT DEFINES A SUBSTANTIAL ELEMENT OF PLEASURE YOU WOULD PROBABLY NEVER GUESS IT WAS ABOUT TAXES BUT THEN YOU HAVEN'T SEEN TED TESSER'S THE SERIOUS INVESTOR'S TAX SURVIVAL GUIDE TRADER'S LIBRARY 18009334430 320 PAGES 6995 THE PLEASURE IN QUESTION IS SOMETHING THE INTERNAL REVENUE SERVICE MAY CLAIM IT DETECTS AS THE REAL REASON FOR SOME EXPENDITURE THE TAXPAYER WANTS TO DEDUCT AS A BUSINESS EXPENSE OR A CHARITABLE CONTRIBUTION THEN IT DISALLOWS THE DEDUCTION ALWAYS THE SPOILSPORT THE IRS EXPLAINS MR TESSER WILL ARGUE THAT THE TAXPAYER DERIVED SIGNIFICANT ENJOYMENT FROM AN ACTIVITY THAT EFFECTIVELY NEGATES THE BUSINESS OR CHARITABLE NATURE OF THE EXPENSE THEY ESPECIALLY LIKE TO APPLY IT TO TRIPS TO HAWAII WHERE YOU LEARNED FORECASTING THE NEXT MOVE IN THE DOW BY COUNTING THE LEAVES ON A PINK FLOWER THAT GROWS ONLY THERE BUT SOME READERS ESPECIALLY THOSE WHO SPEND A LOT OF TIME AND EFFORT ON THEIR INVESTMENTS COULD LEARN ABOUT AN EVEN MORE IMPORTANT TAX CONCEPT FROM MR TESSER'S BOOK A CERTIFIED PUBLIC ACCOUNTANT WHO SPECIALIZES IN INVESTORS AS CLIENTS THE AUTHOR EXPLAINS IN SOME DETAIL HOW CERTAIN TAXPAYERS CAN CLAIM TRADER STATUS THAT COULD OFFER THEM SUBSTANTIAL FINANCIAL BENEFITS MOST TAX PREPARERS HAVE NEVER HEARD OF THE TRADER CLASSIFICATION BUT THE IRS HAS DECIDED THAT PEOPLE WHO BUY AND SELL SECURITIES COME IN THREE FLAVORS INVESTORS DEALERS OR MARKET MAKERS AND TRADERS MOST OF US ARE INVESTORS BECAUSE OUR BUYING AND SELLING OF STOCKS IS SOMETHING WE DO FOR OUR OWN ACCOUNT IT IS NOT OUR PRINCIPAL SOURCE OF INCOME AND WE DO NOT SELL SECURITIES TO CUSTOMERS AS DEALERS DO A TRADER HOWEVER HAS DIFFERENT CHARACTERISTICS ALTOGETHER TRADERS ARE INVESTORS WHO SPECULATE AND TRADE SECURITIES ON THEIR OWN ACCOUNT AND DO NOT HOLD SECURITIES FOR RESALE TO CUSTOMERS AND SINCE THE PASSAGE OF THE TAX REFORM ACT OF 1986 AND THE 1990 OMNIBUS BUDGET RECONCILIATION ACT THIS DISTINCTION HAS BECOME IMPORTANT PRIOR TO THE 1986 AND 1990 BILLS INVESTORS COULD DEDUCT THEIR INVESTMENT EXPENSES WITHOUT LIMIT ON THE MISCELLANEOUS LINE ON SCHEDULE A OF FORM 1040 YOU COULD INCLUDE FOR INSTANCE INTEREST ON MARGIN DEBT SUBSCRIPTIONS TO ADVISORY SERVICES COST OF DATA RETRIEVAL SERVICES AND INVESTMENT SOFTWARE BUT SINCE THE ENACTMENT OF THOSE ACTS EXPENSES OTHER THAN MARGIN DEBT CAN ONLY BE DEDUCTED IF THEY EXCEED 2 OF ADJUSTED GROSS INCOME AND IF THE TAXPAYER'S ADJUSTED GROSS INCOME EXCEEDS 105250 THEN THE THRESHOLD FOR DEDUCTIBILITY GOES UP AGAIN MOREOVER THERE IS ANOTHER TEST TO SEE HOW MUCH OF MARGIN DEBT INTEREST IS DEDUCTIBLE NOW HEAR THIS IF A TAXPAYER ELECTS TO CLAIM TRADER STATUS THEN ALL EXPENSES CAN BE LISTED ON SCHEDULE C USED TO REPORT INCOME FROM A TAXPAYER'S BUSINESS AND DEDUCTED FROM HIS TRADING INCOME STILL SUCH AN ARRANGEMENT IS A MIXED BLESSING BECAUSE THERE IT BECOMES SUBJECTED TO SELFEMPLOYMENT TAX THE 3000 LIMITATION ON DEDUCTING LOSSES THAT EXCEED GAINS ALSO REMAINS EVEN SO MANY INVESTORS COULD FIND THIS ALTERNATIVE A VERY ATTRACTIVE ARRANGEMENT MR TESSER'S BOOK ISN'T MUCH GOOD FOR ORDINARY TAX RETURN PREPARATION IT USES 1991 FORMS TO ILLUSTRATE EXAMPLES BUT IT IS USEFUL IN OTHER WAYS INTERESTING FOR INSTANCE ARE THE ODDS HE PROVIDES ON BEING AUDITED HIS DATA SUGGEST ANYONE WHO REPORTS AN INCOME OVER 50000 HAS A ONEIN12 CHANCE PROFESSIONALS HAVE A ONEINFOUR CHANCE AND KNOWN CRIMINALS A ONEINTWO CHANCE TAXPAYERS WHO LIVE IN ANCHORAGE SAN FRANCISCO AND MANHATTAN HAVE THE HIGHEST PROBABILITY OF GETTING LASHED TO THE GRILL SURPRISINGLY THE BOOK INSISTS THAT FILING LATER LOWERS THE LIKELIHOOD OF BEING AUDITED AND THAT FILING FOR AN AUTOMATIC EXTENSION ACTUALLY REDUCES THE CHANCE FOR AN AUDIT BUT CLAIMING EXPENSES FOR A HOME OFFICE IS A RED FLAG FOR THE IRS BEYOND THAT THE BOOK ENUMERATES 50 TAXREDUCING TIPS THAT MOST OF US WOULD NEVER THINK OF ONE SUGGESTION THAT I FOUND PARTICULARLY INTERESTING CONCERNS BUYING MUTUAL FUNDS THAT CARRY LOADS OR FRONTEND COMMISSIONS MR TESSER DESCRIBES A METHOD YOU CAN USE TO GET THE GOVERNMENT TO HELP ABSORB SOME OF THIS COST SUPPOSE YOU WANT TO BUY A FUND THAT INVESTS IN GROWTH STOCKS BUT CHARGES A 5 FRONTEND COMMISSION INSTEAD OF IMMEDIATELY BUYING THAT FUND BUY A MONEY MARKET FUND FROM THE SAME FAMILY OF FUNDS THAT SELLS THE GROWTH FUND WAIT 90 DAYS AND THEN SWITCH YOUR MONEY FROM THE MONEY MARKET FUND TO THE GROWTH FUND IN MOST FUND FAMILIES THERE IS NO CHARGE FOR SWITCHING BETWEEN FUNDS IN THE FAMILY BECAUSE OF THE COMMISSION YOU PAID WHEN YOU BOUGHT THE MONEY MARKET FUND AFTER YOU SELL IT YOU WILL IMMEDIATELY GENERATE A SHORTTERM DEDUCTIBLE LOSS EQUAL TO THE COMMISSION YOU PAID WHEN YOU FIRST BOUGHT THE MONEY MARKET FUND ACTUALLY THE IRS RECENTLY RULED THIS WAS A STEP TRANSACTION AND DISALLOWED THE LOSS BUT MR TESSER CLAIMS THAT BY WAITING 90 DAYS TO SWITCH THAT ARGUMENT CAN BE VOIDED OF COURSE THE 90DAY WAIT EXPOSES AN INVESTOR TO AN ADVERSE MOVE IN THE GROWTH FUND SHARES BUT IN TAX AVOIDANCE LIKE LIFE THERE IS ALMOST ALWAYS NO FREE LUNCH 9303310145 930331 TECHNOLOGY MICROSOFT IS RELEASING NEW VERSION OF MSDOS REDMOND WASH MICROSOFT CORP IS RELEASING TODAY A NEW VERSION OF ITS POPULAR OPERATINGSYSTEM SOFTWARE THE MSDOS 60 DOUBLING THE AVAILABLE DISK SPACE ON PERSONAL COMPUTERS THE COMPANY ALSO ANNOUNCED AN UPGRADE KIT WHICH TURNS MSDOS 50 THE LAST GENERATION OF THE SOFTWARE INTO THE NEW SYSTEM THE UPGRADE KIT RETAILS FOR 4999 ANALYSTS EXPECT THAT MICROSOFT COULD SELL 300 MILLION IN UPGRADES IN THE NEXT YEAR IF 5 TO 6 OF CURRENT DOS USERS SWITCH OVER AS HAPPENED WITH THE COMPANY'S LAST INTRODUCTION TWO YEARS AGO OF A REVISED OPERATING SYSTEM BY INCREASING COMPRESSION THE NEW SYSTEM DOUBLES A PC'S AVAILABLE DISK SPACE FREEING CONVENTIONAL MEMORY PROTECTING DATA FROM VIRUSES AND ACCIDENTAL DELETIONS AND INCREASING PERFORMANCE HOWEVER OTHER COMPANIES HAVE BEEN SELLING UTILITIES TO PROVIDE MANY OF THESE FEATURES TO DOS USERS FOR A NUMBER OF YEARS 9303310144 930331 RR DONNELLEY & SONS AGREES TO SELL BANK SERVING ITS EMPLOYEES CHICAGO RR DONNELLEY & SONS CO SAID IT HAS ENTERED A DEFINITIVE AGREEMENT TO SELL ITS LAKESIDE BANK SUBSIDIARY FOR AN UNDISCLOSED AMOUNT OF CASH TO A GROUP LED BY ONE OF THE BANK'S OUTSIDE DIRECTORS THE TRANSACTION WOULD END DONNELLEY'S 26YEAR OWNERSHIP OF THE BANK IT FOUNDED TO SERVE ITS EMPLOYEES AT DONNELLEY PLANTS JUST SOUTH OF DOWNTOWN CHICAGO DONNELLEY SAID IT HAS AGREED TO SELL THE BANK TO A GROUP LED BY VICTOR J CACCIATORE SR A LAKESIDE DIRECTOR AND TWO LAKESIDE OFFICERS JOHN R MONTGOMERY III PRESIDENT AND RAYMOND J SPAETH SENIOR VICE PRESIDENT THE BIG PUBLISHING CONCERN OWNS 69 OF LAKESIDE BUT THE TRANSACTION CALLS FOR THE ACQUIRING GROUP TO PURCHASE ALL OF LAKESIDE'S SHARES DONNELLEY SAID IT EXPECTS LAKESIDE TO HOLD A SHAREHOLDER MEETING WITHIN 120 DAYS TO APPROVE THE TRANSACTION AND SAID THE SALE WILL BE COMPLETED BY LATE SUMMER OR EARLY FALL DONNELLEY FOUNDED THE LAKESIDE BANK PRINCIPALLY TO SERVE THE SOME 7500 WORKERS IT EMPLOYED IN THE AREA NOW THAT TOTAL HAS DWINDLED TO ABOUT 900 PEOPLE AND IS SET TO DECLINE FURTHER WHEN DONNELLEY FOLLOWS THROUGH WITH A PLAN TO SHUTTER ITS CHICAGO PRINTING DIVISION AND ELIMINATE 670 JOBS EVEN BEFORE DONNELLEY DECIDED TO CLOSE ITS CHICAGO DIVISION THE COMPANY WANTED TO GET OUT OF THE CONSUMER BANKING BUSINESS IT IS ONE OF A HANDFUL OF NONBANK HOLDING COMPANIES THAT HAS GAINED SPECIAL FEDERAL APPROVAL TO OWN A BANK 9303310143 930331 INTERNATIONAL ITALY'S AMATO OFFERS RESIGNATION AS CORRUPTION SCANDAL WIDENS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL ROME AS ITALY'S UNFOLDING CORRUPTION SCANDAL CLAIMED ANOTHER CABINET MEMBER PRIME MINISTER GIULIANO AMATO EFFECTIVELY OFFERED HIS RESIGNATION TO PRESIDENT OSCAR LUIGI SCALFARO BY SAYING HE WAS AVAILABLE FOR POSSIBLE ALTERNATIVES TO HIS CURRENT GOVERNMENT MR SCALFARO DIDN'T IMMEDIATELY ACCEPT THE RESIGNATION BUT SAID HE RESERVED THE RIGHT TO TAKE APPROPRIATE INITIATIVES MR SCALFARO WAS MEETING WITH PARTY LEADERS INCLUDING LEADERS OF THE FORMER COMMUNIST PARTY AND THE REPUBLICAN PARTY LAST NIGHT TO DISCUSS THE POSSIBILITY OF WIDENING THE CURRENT FOURPARTY COALITION THE CURRENT GOVERNMENT BECOMES MORE DISCREDITED DAILY BY EMERGING ARRESTS AND INVESTIGATIONS IN THE SPREADING SCANDALS THE PRESIDENT'S CONSULTATIONS TO FORM A NEW GOVERNMENT STARTED YESTERDAY MORNING BEFORE THE RESIGNATION OF FINANCE MINISTER FRANCO REVIGLIO A SOCIALIST MR REVIGLIO QUIT YESTERDAY AFTER BEING NOTIFIED THAT HE IS UNDER CRIMINAL INVESTIGATION FOR HIS INVOLVEMENT IN ALLEGED FINANCIAL IRREGULARITIES AT STATE ENERGY GROUP ENTE NAZIONALE IDROCARBURI PROSECUTORS SAY ENI FUNDS WENT TO POLITICAL PARTIES MR REVIGLIO WHO WAS ENI'S CHAIRMAN FROM 1983 TO 1989 HAS REPEATEDLY DENIED RUMORS OF HIS INVOLVEMENT IN ENI IRREGULARITIES IN THE PAST MR REVIGLIO BECOMES THE FIFTH MINISTER TO RESIGN FROM MR AMATO'S CABINET AFTER BEING IMPLICATED IN THE SCANDALS COALITION PARTNERS HAD FAVORED MR AMATO TO STAY ON AT LEAST UNTIL AN APRIL 18 REFERENDUM ON ELECTORAL REFORM BUT EVENTS OF THE PAST FEW DAYS PARTICULARLY THE INVESTIGATION OF CHRISTIAN DEMOCRAT POLITICAL POWERHOUSE GIULIO ANDREOTTI FOR ALLEGED MAFIA ASSOCIATIONS HAVE FURTHER DISCREDITED MR AMATO'S COALITION LEAVING THE GOVERNMENT ON THE BRINK OF COLLAPSE THE GOVERNMENT IS NOW COMPOSED OF THE CHRISTIAN DEMOCRAT SOCIALIST SOCIAL DEMOCRAT AND LIBERAL PARTIES FABIO FABBRI UNDERSECRETARY TO THE PRIME MINISTER SAID THE MOST LIKELY SCENARIO IS A CONSTRUCTIVE NOCONFIDENCE VOTE THAT WOULD MEAN THAT THE PARTIES IN THE WIDENED COALITION WOULD AGREE TO FORM A NEW GOVERNMENT IN ADVANCE OF A NOCONFIDENCE VOTE IN PARLIAMENT AFTER THE VOTE THE NEW GOVERNMENT COULD BE IMMEDIATELY FORMED WITHOUT DELAY THUS ELIMINATING ANY DANGER OF A POWER VACUUM 9303310142 930331 ECONOMY CONSUMER CONFIDENCE INDEX SLIPS AGAIN RAISING FEARS THAT RECOVERY MAY STALL BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER CONFIDENCE FELL IN MARCH FOR THE THIRD STRAIGHT MONTH RAISING CONCERNS THAT THE NEWFOUND FIRMNESS IN THE ECONOMY MAY BE IN JEOPARDY THE NEW YORKBASED CONFERENCE BOARD SAID ITS CLOSELY WATCHED CONSUMER CONFIDENCE INDEX SLIPPED AN ADDITIONAL 59 POINTS TO 626 IN MARCH AFTER MAKING A BIG DROP IN FEBRUARY SINCE DECEMBER THE INDEX HAS FALLEN MORE THAN 15 POINTS FOLLOWING BIG GAINS IN NOVEMBER AND DECEMBER CONSUMER ATTITUDES ABOUT THE PRESENT AND FUTURE DECLINED THE SIGNALS WE'VE BEEN GETTING OVER THE LAST THREE MONTHS COULD BE TROUBLESOME FOR WHAT WILL HAPPEN IN THE ECONOMIC FUTURE SAID FABIAN LINDEN WHO DIRECTS THE CONFERENCE BOARD'S CONSUMER RESEARCH CENTER CJ LAWRENCE ECONOMIST DEBBIE JOHNSON SAID THAT UNLESS CONFIDENCE TURNS AROUND THE RECOVERY COULD STALL SPENDING BY CONSUMERS REPRESENTS ABOUT TWOTHIRDS OF ECONOMIC ACTIVITY SO THEIR MOOD IS IMPORTANT IT WAS A SURGE IN CONSUMER SPENDING THAT HELPED THE ECONOMY EXPAND AT A 47 ANNUAL RATE IN THE FOURTH QUARTER THE LARGEST JUMP IN FIVE YEARS BUT SIGNS SUGGEST THAT THE CONSUMER HASN'T BEEN SO GENEROUS IN THE FIRST QUARTER AND ECONOMISTS INCLUDING FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN HAVE ESTIMATED SLOWER GROWTH CONSUMER SPENDING IS SUBSIDING INTO A LAGGING ROLE INSTEAD OF THE LEADING ROLE IT WAS PLAYING AT THE END OF 1992 SAID MAUREEN ALLYN CHIEF ECONOMIST FOR SCUDDER STEVENS & CLARK INC IN NEW YORK THE CHIEF CONCERN AMONG AMERICANS IS JOBS MOST OF THE DROP IN CONSUMER SENTIMENT DURING MARCH WAS DUE TO WORRY ABOUT JOB PROSPECTS ROUGHLY 41 OF RESPONDENTS DESCRIBED JOBS AS HARD TO GET WHILE ONLY 67 SAID JOBS WERE PLENTIFUL CONFIDENCE FELL IN SEVEN OF THE NINE REGIONS TRACKED BY THE INDEX ONLY THE SENTIMENT OF PEOPLE IN NEW ENGLAND AND THE EAST NORTH CENTRAL REGION IMPROVED PERHAPS AMERICANS WILL SOON FEEL BETTER ABOUT THEIR JOB PROSPECTS THE CONFERENCE BOARD'S HELPWANTED INDEX ALSO RELEASED YESTERDAY ROSE IN FEBRUARY TO ITS HIGHEST LEVEL IN TWO YEARS SUGGESTING INCREASED HIRING THIS SPRING THE DETERIORATION OF THE CONFERENCE BOARD'S INDEX COINCIDES WITH THE DROP IN CONSUMER SENTIMENT AS MEASURED BY THE UNIVERSITY OF MICHIGAN THAT INDEX IS AVAILABLE ONLY TO PRIVATE SUBSCRIBERS BUT MARKET PARTICIPANTS FAMILIAR WITH THE DATA SAY IT HAS FALLEN STEADILY SINCE DECEMBER AS WELL IN ITS EARLY MARCH READING THE UNIVERSITY OF MICHIGAN INDEX SLIPPED TO 843 FROM 866 IN FEBRUARY ACCORDING TO MARKET SOURCES STILL CONSUMER CONFIDENCE IS FAR ABOVE LAST YEAR'S DISMAL LEVELS WHEN THE CONFERENCE BOARD'S READINGS WERE IN THE 40S AND UNIVERSITY OF MICHIGAN'S WERE IN THE 70S SEVERAL ECONOMISTS SAID THE RETREAT OF CONSUMER OPTIMISM MAY JUST BE A RETURN TO THE NORM AFTER A POSTELECTION EUPHORIAMUCH LIKE CONSUMER SENTIMENT RETURNED TO LOW LEVELS AFTER AN INITIAL HIGH AT THE END OF THE PERSIAN GULF WAR THERE ARE STILL SIZABLE PROBLEMS IN THE ECONOMY SUCH AS THE BIG BUDGET DEFICIT AND SLUGGISH JOB GROWTH THAT ARE LIKELY TO DAMP THE MOOD OF CONSUMERS MR LINDEN WHO HEADS THE INDEX SAID THAT IN ITS 25YEAR HISTORY THE INDEX HAD NEVER BEFORE MADE BIG GAINS AFTER AN ELECTION WHEN RONALD REAGAN WAS ELECTED THE INDEX ROSE BY ONLY ONE POINT HE SAID AND WHEN GEORGE BUSH WAS ELECTED THERE WAS VIRTUALLY NO CHANGE AT ALL IT'S HARD TO IMAGINE THAT AN ELECTION WON BY LESS THAN THE MAJORITY COULD CAUSE DANCING IN THE STREET MR LINDEN SAID SANDRA SHABER AN ANALYST WITH THE WEFA GROUP IN PHILADELPHIA SAID SOME OF THE DAMPING OF CONSUMERS' MOODS MAY BE A FEAR OF THE HIGHER TAXES IN PRESIDENT CLINTON'S ECONOMIC PLAN I THINK THAT IS AFFECTING PEOPLE MORE THAN WE THINK SHE SAID 9303310141 930331 ENTERGY GULF STATES MERGER PLAN CLEARS A REGULATORY HURDLE AUSTIN TEXAS IN ANOTHER STEP TOWARD THE 23 BILLION MERGER BETWEEN ENTERGY CORP AND GULF STATES UTILITIES CO A SETTLEMENT BETWEEN THE UTILITIES AND TEXAS STATE REGULATORS STAFF WAS FILED THE SETTLEMENT SAYS THE MERGER IS IN THE PUBLIC INTEREST AND RECOMMENDS THAT THE PUBLIC UTILITY COMMISSION OF TEXAS APPROVE THE OFFICE OF PUBLIC UTILITIES COUNSEL THE STATE AGENCY WHICH REPRESENTS SMALL COMMERCIAL AND RESIDENTIAL CUSTOMERS SUPPORTED THE AGREEMENT BUT DID NOT SIGN THE PUBLIC UTILITIES COUNSEL SAID IT ONLY SIGNED SETTLEMENTS THAT WERE UNANIMOUS CERTAIN PARTIES INCLUDING HOUSTON INDUSTRIES INC'S HOUSTON LIGHTING & POWER CO UNIT SOUTHWESTERN ELECTRIC POWER CO AND CAJUN ELECTRIC POWER COOPERATIVE DID NOT SIGN THE AGREEMENT THE MERGER HEARING WILL CONTINUE TODAY AS WITNESSES ARE CROSSEXAMINED BY THOSE WHO DID NOT CONCUR WITH THE SETTLEMENT THE MERGER WHICH WILL MAKE NEW ORLEANSBASED ENTERGY ONE OF THE LARGEST UTILITY HOLDING COMPANIES IN THE US STILL IS SUBJECT TO NUMEROUS GOVERNMENT AGENCY APPROVALS UNDER THE AGREEMENT ALL FUEL SAVINGS IN GULF STATES' TEXAS SERVICE AREA WILL BE PASSED ON TO CUSTOMERS AND 50 OF THE NONFUEL SAVINGS WILL BE GIVEN TO CUSTOMERS FOR EIGHT YEARS FOLLOWING THE EIGHTYEAR PERIOD ALL SAVINGS GENERATED FROM THE MERGER WOULD BE GIVEN TO RATEPAYERS 9303310140 930331 MARKETING & MEDIA ADVERTISING RETURN TO COMEDY MARKS MILLER'S CLEAR BEER CAMPAIGN AT FREEMAN BY LAURA BIRD IN THE FIRST ROUND OF ADVERTISING FOR ITS NEW CLEAR BEER MILLER BREWING CO IS GIVING AGENCY CLIFF FREEMAN & PARTNERS A CHANCE TO SHINE AND THE OTHER SHOPS ON ITS INCREASINGLY CROWDED ROSTER A REASON TO WORRY MILLER STARTS TEST MARKETING ITS CLEAR BEER NEXT MONTH IN THREE MARKETS AUSTIN TEXAS MINNEAPOLIS AND RICHMOND VA AT THE SAME TIME THE NO 2 BREWER IS TESTING TWO NEW SPOTS THAT MARK A PERHAPS SURPRISING RETURN TO HUMOR FOR MILLER THE BREWER SEEMED TO LEAVE COMEDY BEHIND WHEN IT DUMPED AD AGENCY BACKER SPIELVOGEL BATES IN FAVOR OF LEO BURNETT IN 1991 FOR ITS 110 MILLION ADVERTISING ACCOUNT FOR MILLER LITE SINCE THEN BURNETT HAS BEEN GROPING FOR THE RIGHT STRATEGY NOT TO MENTION A MEMORABLE SLOGAN FOR LITE AFTER SUMMARILY DROPPING BACKER'S LONGRUNNING AND WISECRACKING JOCK DEBATE OVER TASTES GREAT/LESS FILLING EVEN LEO BURNETT EXECUTIVES NOW CONCEDE THAT THE FOLKS AT MILLER ARE LESS THAN THRILLED WITH THE EXECUTION SO FAR FOR THE LITE BRAND ALL THE MORE REASON WHY THEY WILL NO DOUBT BE CLOSELY WATCHING THE EFFORT AT BEING FUNNY BY CLIFF FREEMAN & PARTNERS ON BEHALF OF THE CLEAR BEER THE ONCE LITTLEKNOWN SHOP HAS ALREADY WON A RATHER WELLDESERVED REPUTATION FOR HUMOR IN ITS ADS OBSERVERS ON MADISON AVENUE CAN'T IGNORE THE FACT THAT FREEMAN ALSO IS OWNED BY THE PARENT COMPANY OF THE SPURNED BACKER SPIELVOGEL SAATCHI & SAATCHI CO PLC WHICH IS ITCHING FOR ANOTHER CRACK AT A BIGGER PART OF THE MILLER BUSINESS FREEMAN WHICH BILLS ABOUT 100 MILLION A YEAR HAS RECENTLY SEEN ITS PROFILE SOAR THANKS IN PART TO AN ANIMATED GNOME IN A TOGA THE LITTLE ROMAN THE MASCOT FOR LITTLE CAESARS PIZZA HAS APPEARED IN ZANY ADS FOR THE PIZZA CHAIN SINCE 1987 THE SPOTS PUNCTUATED BY THE PIZZA PIZZA SLOGAN HAVE PROPELLED THE CHAIN INTO SERIOUS CONTENTION WITH DOMINO'S AS THE NO 2 PIZZA CHAIN BEHIND PEPSICO'S PIZZA HUT SAYS CONSULTANT RON PAUL OF TECHNOMIC INC CHICAGO MORE IMPORTANT FOR MILLER HOWEVER IS THAT THE OFFBEAT WORK FOR LITTLE CAESARS WAS THE MOST POPULAR AND MEMORABLE ADVERTISING IN AMERICA LAST YEAR ACCORDING TO A NATIONAL SURVEY BY VIDEO STORYBOARD TESTS INC NOW FREEMAN'S COMEDY WRITERS ARE TRYING TO MAKE THE DUBIOUS NOTION OF CLEAR BEER EQUALLY COMICAL THE SPOTS FEATURE NERDY WHITECOATED BEER EXPERTS IN A MILLER LABORATORY UNVEILING MILLER CLEAR TO THE SUITS FROM MARKETING CENTRAL WITH CARTOONISH SOUND EFFECTS AND A CAST OF CARICATURES THE SPOT RECALLS THE POPULAR AD CAMPAIGNS OF DECADES PAST SUCH AS FEDERAL EXPRESS'S FAST TALKER AND WENDY'S WHERE'S THE BEEF STARRING PEOPLE WHO WERE MORE LAUGHABLE THAN ENVIABLE GENTLEMEN WE MADE THE MOST DRINKABLE BEER ON THE FACE OF THE EARTH ONE OF THE EGGHEADS PROCLAIMS THEN EXPLAINS THAT IT ISN'T A LITE BEER BUT IS A REGULAR BEER THAT DOESN'T LEAVE YOU FEELING HEAVY ALL THAT WAS NECESSARY THE LAB NERD SAYS WAS ONE TEENY WEENY WEENY THING CUT TO THE CHASE SNEERS A BEEFY EXEC WITH A FLATTOP THE WHITECOATS PULL A PAPER BAG OFF THE NEW PRODUCT AND THE SUITS GO BUGEYED WHEN THEY GET THE CRYSTALCLEAR VIEW ONE DOUBLECHINNED MARKETER'S HAIR INSTANTLY TURNS A FEARFUL WHITE IT MAY NOT SOUND LIKE A LOT OF YUKS BUT MILLER SEEMS TO BE HOPING THAT FREEMAN'S OFFBEAT WORK FOR LITTLE CAESARS CAN SPAWN SIMILAR SUCCESS FOR WHILE LITTLE CAESARS TOPS THE VIDEO STORYBOARD CHARTS ADS FOR MILLER BEER BRANDS HAVE BEEN STEADILY SLIDING DOWN THE RANKING THE LINEUP IS COMPILED ANNUALLY BASED ON 22000 TELEPHONE INTERVIEWS AND IS FOLLOWED CLOSELY ON MADISON AVENUE WHEN MILLER LITE ADS WERE FILLED WITH JOCKS AND JOKES THEY WERE REGULARLY AT THE TOP OF THE VIDEO STORYBOARD CHARTS COURTESY OF BACKER SPIELVOGEL LAST YEAR WHEN MILLER LITE OFFERED UP LEO BURNETTPRODUCED SPOTS FILLED WITH NOTSOHILARIOUS DANCING ALIENS THE BEER PLACED WAY BACK AT NO 17 OUT OF 25 FOR CLIFF FREEMAN & PARTNERS GETTING A FOOT IN THE DOOR WITH A MODEST ASSIGNMENT MIGHT BE A PRELUDE TO A BIGGER COUP AMERICAN EXPRESS CO HAD ASSIGNED ITS GOLD CARD ADVERTISING TO CHIAT/DAY FOR A TIME BEFORE HANDING OVER ITS ENTIRE CHARGE CARD ACCOUNT LATER IT SWITCHED BACK TO OGILVY & MATHER WHICH ITSELF WON A WAY BACK INTO THE CLIENT'S GRACES BY TOILING ON THE LESSER CAMPAIGN AIMED AT RESTAURANTS CLIFF FREEMAN CHAIRMAN AND CREATIVE DIRECTOR OF THE AGENCY SAYS HE IS HAPPY JUST TO HAVE THE NEWPRODUCT ASSIGNMENT FROM THE PHILIP MORRIS COS UNIT WHICH THE AGENCY WON EARLY LAST YEAR HE SAYS HE HAS EVERY REASON TO HOPE THAT MILLER CLEAR TURNS INTO A NATIONAL SUCCESS I REALLY THINK IT'S POSSIBLE HE SAYS CONCEDING THAT ULTIMATELY IT HAS TO BE MUCH MORE THAN A GIMMICK OR A FAD EXECUTIVES AT BURNETT AND AT THE FOUR OTHER AGENCIES THAT MILLER KEEPS ON ITS ROSTER FOR THAT MATTER HAVE EVERY REASON TO WORRY IF FREEMAN FINDS RESOUNDING SUCCESS IN FACT THE BIGGEST OBSTACLE THAT MIGHT STAND IN FREEMAN'S WAY IS THE SEETHROUGH PRODUCT ITSELF ADVERTISING EXPERTS SAY AL ACHENBAUM THE FORMER VICE CHAIRMAN OF BACKER SPIELVOGEL BATES AND CURRENTLY A MARKETING CONSULTANT SAYS THE MILLER CLEAR ACCOUNT COULD EASILY TURN INTO A 40 MILLION BUSINESS IF THE PRODUCT IS ROLLED OUT NATIONALLY BUT THAT'S ONLY IF THE FADDY PRODUCT DOESN'T DIE A QUIET DEATH CLIFF FREEMAN IS A LONG WAY FROM SUCCEEDING MR ACHENBAUM SAYS I DON'T BELIEVE MILLER CLEAR IS GOING TO BE A BIG BROADBASED PRODUCT HE SAYS I'M NOT EVEN SURE HOW SUCCESSFUL CLEAR COLAS CAN BE MILLER'S DIRECTOR OF NEW PRODUCTS JERRY SCHMUTTE SAYS THERE IS PENTUP DEMAND FOR A FULLFLAVORED BEER THAT FEELS LIGHTER IN THE MOUTH AND THE STOMACH BUT ISN'T NECESSARILY A REDUCED CALORIE BRAND MILLER CLEAR WEIGHS IN WITH 122 CALORIES PER 12 OUNCE SERVING COMPARED WITH 147 CALORIES FOR MILLER HIGH LIFE AND 96 FOR MILLER LITE THROUGH ULTRAFILTRATION THE BEER IS RENDERED CLEAR BY REMOVING ROUGHLY HALF THE CARBOHYDRATES COMPOSED OF NONFERMENTABLE SUGARS MILLER CLEAR IS INTENDED TO BE A MAINSTREAM PREMIUM BEER MR SCHMUTTE SAYS IT'S NOT A NICHE BEER BEER IS BASICALLY A FUN PRODUCT SAYS MR FREEMAN AND USING HUMOR IS JUST A NATURAL WAY TO PITCH IT BUT MILLER DIDN'T HAND DOWN A COMMAND TO MAKE 'EM LAUGH HE SAYS IT JUST HAPPENED THEY NEVER SAID IT HAD TO BE FUNNY DMB&B D'ARCY MASIUS BENTON & BOWLES NEW YORK PROMOTED JOE PLUMER TO VICE CHAIRMAN WORLDWIDE PLANNING DIRECTOR A NEW POSITION HE HAD BEEN EXECUTIVE VICE PRESIDENT FOR NORTH AMERICAN BUSINESS DEVELOPMENT ACCOUNT BATTLEGROUND RESTAURANT GROUP THE CLOSELY HELD GREENSBORO NC OPERATOR OF THE ROCKOLA AND TEN TRIPP RESTAURANT CHAINS TAPPED TRONE ADVERTISING GREENSBORO TO HANDLE ITS ADVERTISING AFTER A REVIEW THAT INCLUDED THREE OTHER AGENCIES BILLINGS COULDN'T BE DETERMINED WHO'S NEWS SAATCHI & SAATCHI CO'S CME KHBB NAMED STEVE JANKOWSKI EXECUTIVE CREATIVE DIRECTOR OF ITS NEW YORK OFFICE HE PREVIOUSLY WAS A CREATIVE DIRECTOR ON ITS TEXACO AND BROWN & WILLIAMSON TOBACCO ACCOUNTS 9303310139 930331 BUSINESS BRIEF DELAY IN CLOSING GM'S WILLOW RUN SITE TO COST 15 MILLION A MONTH FIRM SAYS DETROIT GENERAL MOTORS CORP TRYING TO OVERTURN AN INJUNCTION BLOCKING IT FROM CLOSING A MICHIGAN ASSEMBLY PLANT SAID IT WILL COST THE COMPANY AN ADDITIONAL 15 MILLION A MONTH TO KEEP THE FACILITY OPEN BEYOND THE PLANNED CLOSING DATE IN JULY GM LAST YEAR SAID IT WOULD CLOSE ITS WILLOW RUN MICH ASSEMBLY PLANT THIS SUMMER AND CONSOLIDATE PRODUCTION OF ITS LARGE REARDRIVE CARS AT ITS FACTORY IN ARLINGTON TEXAS BUT IN FEBRUARY A COUNTY CIRCUIT COURT JUDGE BARRED GM FROM CLOSING THE PLANT BECAUSE IT HAD ACCEPTED TAX BREAKS FROM THE MUNICIPALITY GM IS SEEKING AN IMMEDIATE REMOVAL OF THE INJUNCTION BLOCKING THE PERMANENT CLOSING OF WILLOW RUN AND AN EXPEDITED HEARING IN THE MICHIGAN COURT OF APPEALS IN ITS APPEAL GM SAID THE COST OF COMPLYING WITH THE INJUNCTION WOULD COST THE COMPANY ABOUT 800 PER VEHICLE OR 15 MILLION A MONTH TO CONTINUE OPERATING BOTH WILLOW RUN AND ARLINGTON FACILITIES AT HALF CAPACITY BEYOND THE SCHEDULED CLOSING DATE AND GM SAID IT WILL HAVE TO BEAR ADDITIONAL 55 MILLION COST TO RETOOL WILLOW RUN TO BUILD 1994 MODELYEAR VEHICLES IF IT KEEPS THE PLANT RUNNING AFTER THIS SUMMER SEPARATELY SPOKESMEN FOR DANA CORP AND MASCO CORP CONFIRMED THAT THEY VISITED CERTAIN AXLE DRIVESHAFT AND FORGING OPERATIONS RUN BY GM'S MASSIVE AUTOMOTIVE COMPONENTS GROUP THAT ARE UP FOR SALE ABOUT FOUR MONTHS AGO GM SAID IT WOULD SELL OR FIND JOINTVENTURE PARTNERS FOR 14 SEPARATE MAJOR PRODUCT LINES OF THE COMPONENTS GROUP HOWEVER THE SPOKESMAN FOR DANA BASED IN TOLEDO OHIO SAID NO ADDITIONAL MEETINGS HAVE BEEN SET UP WITH GM A SPOKESMAN FOR MASCO BASED IN TAYLOR MICH SAID THE TWO COMPANIES WHICH MAKE A VARIETY OF FORGED AND MACHINED AUTOMOTIVE PARTS WERE CONSIDERING SOME TYPE OF JOINT ARRANGEMENT INVOLVING THE GM OPERATIONS BUT DECLINED TO ELABORATE A GM SPOKESWOMAN WOULDN'T CONFIRM THE DANA AND MASCO VISITS WE'RE STILL TALKING TO PEOPLE BUT WE DON'T HAVE ANY FIRM OFFERS THE SPOKESWOMAN ADDED 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 9303310138 930331 TECHNOLOGY AMERICAN CYANAMID SUBSIDIARY WAYNE NJ AMERICAN CYANAMID CO'S LEDERLEPRAXIS BIOLOGICALS UNIT SAID IT HAD RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET A PEDIATRIC VACCINE THAT COMBINES TWO EXISTING VACCINES THE NEW VACCINE CALLED TETRAMUNE COMBINES THE COMPANY'S TRIIMMUNOL DTP VACCINE WITH ITS HIBTITER VACCINE THE VACCINE WILL CUT IN HALF THE NUMBER OF SHOTS A CHILD RECEIVES FOR PROTECTION AGAINST DIPHTHERIA TETANUS PERTUSSIS AND HAEMOPHILUS B DISEASE THE COMPANY SAID 9303310137 930331 TECHNOLOGY & HEALTH CLINTON GETS A BOOST AS HEALTH PANEL FAVORS MIX OF RATE SETTING COMPETITION BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A BOOST FOR THE CLINTON ADMINISTRATION A NONPARTISAN CONGRESSIONAL COMMISSION IS TO TELL LAWMAKERS TODAY THAT A COMBINATION OF GOVERNMENT RATESETTING AND MANAGED COMPETITION MAY BE THE BEST WAY TO CURB HEALTHCARE COSTS THAT IS PRECISELY WHERE THE ADMINISTRATION IS LEANING PRESIDENT CLINTON WANTS TO PROMOTE COMPETITION IN THE PRIVATE HEALTHCARE MARKET BY SETTING UP LARGE PURCHASING AGENTS TO SHOP FOR THE BEST HEALTH COVERAGE ON BEHALF OF BUSINESSES AND INDIVIDUALS BUT HE ALSO WANTS TO SET AN OVERALL LIMIT ON NATIONAL HEALTH SPENDING AND IS SERIOUSLY CONSIDERING IMPOSING TEMPORARY GOVERNMENT CONTROLS ON MEDICAL PRICES WHILE THE NEW HEALTH SYSTEM IS GETTING UP AND RUNNING MANY ECONOMISTS MEMBERS OF CONGRESS AND OTHERS HAVE CRITICIZED THE IDEA OF TRYING TO MARRY THE COMPETITIVE APPROACH WITH THE REGULATORY APPROACH BUT THE PHYSICIAN PAYMENT REVIEW COMMISSION IN ITS ANNUAL REPORT TO CONGRESS SCHEDULED FOR RELEASE TODAY SAYS THAT EITHER APPROACH ALONE MAY NOT DO THE JOB WHILE BOTH RATESETTING AND MANAGED COMPETITION OFFER SIGNIFICANT POTENTIAL TO DO A BETTER JOB IN CONTAINING COSTS THAN DO CURRENT POLICIES THE POTENTIAL SHORTFALL BETWEEN THEORY AND PRACTICE FOR BOTH THESE STRATEGIES CREATES SERIOUS RISK THE REPORT SAYS IN PARTICULAR THE COMMISSION SAID IT IS UNCLEAR WHETHER THE POLITICAL SYSTEM WOULD BE ABLE TO HOLD DOWN PAYMENT RATES SUBSTANTIALLY OVER THE LONG TERM OR WHETHER IT WOULD BE POSSIBLE TO RESTRUCTURE THE PRIVATE MARKET TO BRING VIGOROUS PRICE AND QUALITY COMPETITION JUDICIOUS COMBINATIONS OF MANAGED COMPETITION AND RATESETTING THE REPORT SAYS NOT ONLY COULD LIMIT THE IMPACT OF POSSIBLE FAILURE OF A SINGLE APPROACH BUT ALSO COULD LEAVE THE SYSTEM BETTER PREPARED TO EMPHASIZE THE MORE SUCCESSFUL APPROACH THE REPORT SAYS THE COMMISSION WAS ESTABLISHED BY CONGRESS IN THE MID 1980S TO ADVISE LAWMAKERS ON CHANGING ITS PAYMENT SYSTEM FOR DOCTORS SINCE THEN CONGRESS HAS EXPANDED THE PANEL'S POWERS TO MAKE RECOMMENDATIONS ON CONTROLLING HEALTH COSTS OVERALL AND OTHER MATTERS ITS CHAIRMAN PHILIP LEE WAS RECENTLY NOMINATED BY PRESIDENT CLINTON TO BE ASSISTANT SECRETARY OF HEALTH A TOP POST AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ANSWERING REPORTERS' QUESTIONS AFTER A SPEECH YESTERDAY TO THE AMERICAN BUSINESS CONFERENCE IRA MAGAZINER THE TOP WHITE HOUSE HEALTH ADVISER SAID NO DECISIONS HAD BEEN MADE ON WHETHER TO IMPOSE PRICE CONTROLS CONTROLS IF ONE DOES THEM IN MANDATORY FASHION IN PARTICULAR ARE NOT A PLEASANT POLICY HE SAID IF WE HAVE TO DO THEM IT WON'T BE SOMETHING I PERSONALLY WOULD RECOMMEND DOING WITH GREAT VERVE NEVERTHELESS HE ADDED IT'S NOT A VERY PLEASANT SET OF ALTERNATIVES WHAT WE HAVE TO LOOK AT IS THE RELATIVE DIFFICULTIES OF DOING VARIOUS CONTROLS OF SOME SORT VS LETTING THE SYSTEM CONTINUE TO GROW AT SUCH A FAST RATE AND HAVE THAT KIND OF ADVERSE EFFECT ON THE ECONOMY WHILE WE IMPLEMENT A NEW SYSTEM THE PHYSICIAN PAYMENT REVIEW COMMISSION ALSO REPORTED THE FIRST FINDINGS ON HOW MEDICARE'S NEW PAYMENT SYSTEM FOR DOCTORS IS WORKING BEGINNING IN 1992 MEDICARE FOR THE FIRST TIME STARTED SETTING THE VALUE OF THOUSANDS OF DOCTORS' SERVICES INSTEAD OF SIMPLY REIMBURSING DOCTORS BASED ON WHAT THEY CUSTOMARILY CHARGE DOCTORS THOUGH ENDORSING THE CONCEPT WERE UPSET BY THE FEES THE GOVERNMENT CAME UP WITH MANY THREATENED TO STOP TAKING MEDICARE PATIENTS BUT AFTER ANALYZING DATA FOR THE FIRST SIX MONTHS UNDER THE NEW SYSTEM THE PPRC CONCLUDED THAT MORE THAN 90 OF PHYSICIANS ARE STILL ACCEPTING NEW MEDICARE PATIENTS IT ALSO SAID PHYSICIANS HAVEN'T SHARPLY INCREASED THE AMOUNT OF SERVICES THEY PROVIDE IN ORDER TO OFFSET THE EFFECT OF LOWER FEES THE MAJOR FEARS THAT WERE RAISED BY SOME ON THE ONE HAND THAT PHYSICIANS WOULD NO LONGER TREAT MEDICARE BENEFICIARIES AND ON THE OTHER HAND THAT COSTS WOULD INCREASE SHARPLY DUE TO PHYSICIANS' INCREASING VOLUME OF SERVICES HAVE BEEN SHOWN TO BE CLEARLY UNFOUNDED THE REPORT SAID 9303310136 930331 INTERNATIONAL AIRBUS EXPECTED TO REPORT SALE OF JETS TO CHINA DEAL FOR 12 AIRCRAFT COMES AS TOP OFFICIAL BLASTS BOEING FOR STATEMENTS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS AIRBUS INDUSTRIE IS EXPECTED TO ANNOUNCE TODAY THAT IT HAS SOLD 12 JETLINERS VALUED AT ABOUT 1 BILLION TO TWO CHINESE AIRLINES THE EXPECTED ORDER COMES AS AIRBUS'S TOP EXECUTIVE ACCUSED BOEING CO OF IMPERILING TRADE TALKS ON AIRCRAFT SUBSIDIES CHINA'S OFFICIAL XINHUA NEWS AGENCY REPORTED THAT THE GOVERNMENT SIGNED SEVERAL MAJOR CONTRACTS INCLUDING ONE WITH AIRBUS IN ASSOCIATION WITH A VISIT BY GERMAN ECONOMICS MINISTER GUENTER REXRODT AIRBUS OFFICIALS DECLINED TO COMMENT ON THE DEAL MEANTIME JEAN PIERSON AIRBUS CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THAT BOEING IS ATTEMPTING TO INFLUENCE TRADE TALKS SET TO BEGIN TODAY BETWEEN US AND EUROPEAN COMMUNITY OFFICIALS US TRADE REPRESENTATIVE MICKEY KANTOR IN BRUSSELS DESCRIBED THE TALKS AS TECHNICAL AND DECLINED TO COMMENT FURTHER IN HIS ATTACK MR PIERSON CITED CONGRESSIONAL TESTIMONY BY BOEING VICE PRESIDENT LAWRENCE CLARKSON AND LATER STATEMENTS BY MR CLARKSON TO A LEADING GERMAN NEWSPAPER MR PIERSON QUOTED THE US EXECUTIVE AS TELLING CONGRESS THAT AIRBUS HASN'T CUT PRODUCTION LEVELS DESPITE A DOWNTURN IN THE INDUSTRY THE AIRBUS EXECUTIVE SAID HIS COMPANY HAD IN FACT BEEN SCALING BACK BOTH PLANNED PRODUCTION INCREASES AND ACTUAL PRODUCTION LEVELS SINCE OCTOBER 1990 MR PIERSON ALSO TOOK MR CLARKSON TO TASK FOR TELLING CONGRESS THE EUROPEAN CONSORTIUM ENGAGES IN UNFAIR TRADE PRACTICES BUT THEN TELLING THE GERMAN PAPER BOEING HAS NO KNOWLEDGE OF UNFAIR PRACTICES BY AIRBUS MR PIERSON DESCRIBED MR CLARKSON'S STATEMENTS AS AN AMAZING EXERCISE IN DOUBLESPEAK MR PIERSON DEFENDED THE CONSORTIUM'S OFFERING OF WALKAWAY LEASES WHICH ENABLE AIRLINES TO RETURN A PLANE TO THE MANUFACTURER WITHIN A YEAR AND THUS KEEP THEM OFF THEIR BOOKS HE SAID BOEING ITSELF HAS STRUCK SIMILAR DEALS AND THAT THE IDEA WAS PIONEERED BY ANOTHER US COMPANY MCDONNELL DOUGLAS CORP THE CLINTON ADMINISTRATION MAY TRY TO STOP AIRBUS FROM USING WALKAWAY LEASES A BOEING SPOKESMAN IN EUROPE DECLINED TO COMMENT ON MR PIERSON'S REMARKS UNTIL THE COMPANY HAD A CHANCE TO REVIEW THEM IN DETAIL AS FOR THE CHINESE PLANE SALE A EUROPEAN SOURCE FAMILIAR WITH THE TALKS SAID THE DEAL INVOLVED THE SALE OF SIX A300 JETLINERS EACH TO CHINA NORTHERN AIRLINE AND CHINA NORTHWEST AIRLINE THE SOURCE SAID ADDITIONAL TALKS ARE UNDER WAY FOR THE SALE OF SIX OF THE EUROPEAN CONSORTIUM'S NEW WIDEBODY A340 JETS TO CHINA SOUTHERN AIRLINE BASED IN CANTON ALL THREE AIRLINES ARE REPORTEDLY CONSIDERING TAKING OUT OPTIONS ON ADDITIONAL AIRCRAFT AIRBUS HAS BEEN ACTIVE IN CHINA A FASTGROWING AVIATION MARKET FOR NEARLY A DECADE THE CONSORTIUM SOLD ITS FIRST PLANES THERE TO CHINA EASTERN IN 1985 AND ALTOGETHER HAS RECEIVED ORDERS FOR 17 AIRCRAFT FROM CHINESE AIRLINES AIRBUS IS A CONSORTIUM OF BRITISH AEROSPACE PLC AEROSPATIALE SA OF FRANCE DAIMLERBENZ AG'S DEUTSCHE AEROSPACE AG UNIT OF GERMANY AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN 9303310135 930331 CELEBRITY CRUISE ORDERS NEW SHIP NEW YORK OVERSEAS SHIPHOLDING GROUP INC SAID ITS JOINT VENTURE CELEBRITY CRUISE LINES INC SIGNED A CONTRACT WITH A GERMAN COMPANY TO BUILD A 1740 PASSENGER CRUISE SHIP FOR ABOUT 3175 MILLION THE AGREEMENT WITH JOS L MEYER GMBH OF PAPENBURG GERMANY ALSO GIVES CELEBRITY CRUISE OPTIONS FOR TWO SISTER SHIPS AT ABOUT THE SAME PRICE ALL VESSELS ARE FOR THE CELEBRITY FLEET WITH THE FIRST SHIP SCHEDULED FOR DELIVERY IN LATE 1995 CELEBRITY CRUISE IS A JOINT VENTURE BETWEEN OVERSEAS SHIPPING AND THE CHANDRIS CRUISE DIVISION OF CHANDRIS INC A PRIVATELY HELD SHIPPING REAL ESTATE AND HOTEL CONCERN IN LONDON CELEBRITY CRUISE OWNS AND OPERATES FIVE CRUISE SHIPS MARKETED UNDER THE TRADE NAMES OF CELEBRITY CRUISES AND FANTASY CRUISES 9303310134 930331 DID JOE MELING TRY TO POISON HIS WIFE JENNIFER HAS DOUBTS SHE TESTIFIES IN SUDAFED CASE BUT WONDERS IF HUSBAND REALLY WANTED TO KILL HER BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE AFTER JENNIFER MELING ALMOST DIED FROM TAKING A POISONED SUDAFED CAPSULE TWO YEARS AGO SHE FACED ONE BURNING QUESTION WHO DID IT HAD HER HUSBAND JOE PUT THE MASSIVE DOSE OF CYANIDE IN HER DECONGESTANT PILL TO COLLECT 700000 IN INSURANCE ON HER LIFE OR WAS IT AN ACT OF RANDOM PRODUCT TAMPERING SUSPECTING HIM MRS MELING FILED FOR DIVORCE AND COOPERATED WITH A FEDERAL PROSECUTOR BUT WHEN MR MELING DECLARED HIS INNOCENCE SHE HAD SECOND THOUGHTS AND MOVED BACK WITH HER HUSBAND AT HIS TRIAL IN FEDERAL COURT HERE WHICH COULD GO TO THE JURY TODAY SHE HAS TESTIFIED IN HIS FAVOR SORT OF IN HOURS OF TESTIMONY MRS MELING WAVERED I DON'T WANT TO BE THE JUDGE IN THIS SHE SOBBED IN HER FINAL MOMENTS ON THE WITNESS STAND I HOPE AND I PRAY THAT I MADE A WISE DECISION IN MARRYING JOE MELING AND I HOPE AND PRAY THAT HE DIDN'T DO THIS BUT I DON'T KNOW PROSECUTORS CONTEND THAT MR MELING NOT ONLY TRIED TO KILL HIS WIFE BUT ALSO PLACED CYANIDELACED SUDAFED PILLS IN SEVERAL STORES TO MAKE IT LOOK LIKE PRODUCT TAMPERING AND TO DIVERT SUSPICION FROM HIMSELF BEFORE BURROUGHS WELLCOME CO RECALLED THE PILLS TWO PEOPLE DIED SOON AFTER HER POISONING MRS MELING THEN 28 YEARS OLD WAS DEEPLY SUSPICIOUS OF HER SPOUSE WHO WAS 29 MR MELING WAS A BIG SPENDER BUT AS A PRUDENTIAL INSURANCE CO AGENT HE HADN'T BEEN MAKING MUCH MONEY AND THEIR MARRIAGE HAD BEEN ROCKED BY BITTER ARGUMENTS OVER FINANCES DURING ONE ALTERCATION A FEW WEEKS BEFORE THE POISONING MRS MELING HAD CALLED POLICE TO THEIR HOME SAYING HER HUSBAND WAS ASSAULTING HER BUT WHEN THE POLICE ARRIVED SHE RECANTED AND HE WASN'T ARRESTED AFTER THAT MR MELING TURNED COLD INFORMING HER THEY WOULD NO LONGER HAVE SEX HE ALSO SHARPLY INCREASED HER LIFE INSURANCE OTHERS TOLD MRS MELING THAT HER HUSBAND PROBABLY WAS GUILTY HER DOCTOR WAS SO WARY OF MR MELING THAT HE WOULD RELEASE HER FROM THE HOSPITAL ONLY IF SHE WENT TO HER PARENTS HOME IN SOUTHERN WASHINGTON HER PARENTS WHO NEVER LIKED MR MELING HIRED A PRIVATE DETECTIVE TO INVESTIGATE HIM AND URGED THEIR DAUGHTER TO FILE FOR DIVORCE AN AGENT WITH THE FEDERAL BUREAU OF INVESTIGATION TOLD HER SHE SHOULDN'T SEE MR MELING AGAIN BUT MR MELING BEGAN TELEPHONING WHEN A GIRLFRIEND WONDERED WHY MRS MELING WOULD SPEAK WITH HIM MRS MELING REPLIED WELL IT'S HARD BECAUSE I'VE KNOWN HIM FOR 10 YEARS LIVED WITH HIM FOR THREE AND YOU KNOW YOU HAVE FEELINGS FOR HIM I MEAN I I CAN'T JUST TURN THOSE THINGS OFF THEN MR MELING WANTED TO MEET WITH HIS WIFE SECRETLY HE SAID DURING A PHONE CALL THAT HIS WIFE WAS RECORDING FOR THE FBI MR MELING I BELIEVE THAT THERE ARE SOME PERSONAL THINGS THAT I WOULD LIKE TO TALK TO YOU ABOUT THAT ARE NONE OF THE FBI'S BUSINESS THEY'RE NONE OF YOUR PARENTS' BUSINESS MRS MELING THAT'S WHY WE'RE MEETING MR MELING I UNDERSTAND THAT BUT HOW DO I KNOW THAT YOU'RE NOT WEARING A WIRE A CONCEALED FBI MICROPHONE THE ONLY CONDITIONS UNDER WHICH I WILL MEET WITH YOU IS MEET SOMEPLACE WHERE I CAN CHECK YOU FOR WIRES AND THEN WE CAN TALK DESPITE HIS SUSPICIONS THEY MET IN A SHOPPING CENTER AND EVEN TALKED OF SPENDING THE NIGHT TOGETHER IN A MOTEL MR MELING'S METHOD OF WINNING HIS WIFE BACK WAS A MIXTURE OF BLUSTER AND SWEET TALK HE WOULD MAKE ANY DIVORCE NASTY HE WARNED ON ONE OCCASION BUT IN A PHONE CALL HE TOLD HER I LOVE YOU HONEY I MISS YOU LIKE CRAZY THEN ONE DAY MRS MELING WAS ASKED BY AUTHORITIES TO SEE JOANNE MAIDA AN ASSISTANT US ATTORNEY IN SEATTLE SPEAKING ON THE PHONE MR MELING SAID HE DIDN'T WANT HER TO GO MR MELING THEIR JOB IS TO PUT ME AWAY THEIR JOB WOULD BE TO RESELL YOU ON THE IDEA THAT I TRIED TO KILL YOU MRS MELING I WANT TO GO UP THERE AND PUMP HER FOR INFORMATION MR MELING HONEY SHE'S A US ATTORNEY SHE GOT TO THAT POSITION BY HAVING A HELL OF A LOT OF EXPERIENCE CROSSEXAMINING PEOPLE YOU ARE NOT GOING TO GET ANY INFORMATION OUT OF HER EVERY TIME YOU TALK TO THESE PEOPLE YOU'RE SLEEPING WITH THE ENEMY BUT MRS MELING DID GO WITHOUT WARNING MS MAIDA HANDED HER A SUBPOENA AND PUT HER ON THE WITNESS STAND IN FRONT OF A FEDERAL GRAND JURY MRS MELING TESTIFIED HOLDING NOTHING BACK AS SHE DESCRIBED IT AT MR MELING'S TRIAL I TOOK EVERY LITTLE PIECE OF DIRT THAT I COULD REMEMBER ABOUT OUR RELATIONSHIP AND LAID IT OUT FEARFUL THAT MR MELING WOULD BE ANGRY ABOUT HER COOPERATION WITH THE PROSECUTOR MRS MELING FLEW TO HAWAII AT THE FBI'S EXPENSE AND STAYED WITH A FRIEND FOR SEVEN WEEKS WHEN SHE GOT BACK SHE TESTIFIED AT TRIAL MY PLAN WAS TO GET AN APARTMENT AND TO LIVE BY MYSELF AND TO JUST MOVE ON AND WHEN I RAN INTO JOE AT MY FRIENDS' HOUSE IT JUST JUST MY EMOTIONS I WAS CONNECTED TO HIM DISREGARDING THE ADVICE OF HER PARENTS AND THE PROSECUTOR MRS MELING DROPPED HER DIVORCE ACTION SHE AND MR MELING STARTED APARTMENT HUNTING MR MELING WAS JUBILANT IN A CONVERSATION PICKED UP BY AN FBI MICROPHONE HE TOLD HIS WIFE THAT THE PROSECUTOR'S CASE AGAINST HIM IS BUILT ON CIRCUMSTANTIAL EVIDENCE A FAIR AMOUNT OF CIRCUMSTANTIAL EVIDENCE BUT IF WE'RE LIVING TOGETHER LAUGHS THAT'S GOING TO BE REAL HARD FOR A JURY TO SWALLOW THAT REMARK WORRIED MRS MELING WAS HE RECONCILING WITH HER TO THWART THE PROSECUTOR'S CASE IF SO WHAT SHOULD SHE DO I WANTED TO MAKE A DECISION THAT I WANTED SHE EXPLAINED AT THE TRIAL NOT WHAT JOE WANTED NOT WHAT MY PARENTS WANTED NOT WHAT THE US ATTORNEY WANTED SO I STRUGGLED WITH IT ABOUT THIS TIME MRS MELING LEARNED FROM THE FBI THAT MR MELING HAD BEEN FREQUENTING STRIPTEASE BARS AROUND TACOMA AND HAD BEEN MAKING INSULTING REMARKS ABOUT HER TO OTHERS SHE RETURNED TO HIM ANYWAY AT MR MELING'S TRIAL MS MAIDA HAMMERED AT MRS MELING'S CONVICTION THAT HER HUSBAND LOVED HER PROSECUTOR YOUR HUSBAND ROMANCED YOU WITH ROSES DID YOU ALSO KNOW THAT HE WAS SENDING RED ROSES TO A STRIPPER IN TACOMA IS THAT THE CONDUCT OF A MAN WHO LOVES YOU MRS MELING IF HE SAYS HE LOVES ME I BELIEVE HIM PROSECUTOR HE TOLD HIS SUPERVISOR AT WORK WHILE YOU WERE RECUPERATING FROM A NEARDEATH SITUATION HE CALLED YOU A LYING BITCH IS THAT THE CONDUCT OF A MAN WHO LOVES YOU PROSECUTOR HE WAS ASKING A STRIPPER TO REMOVE HER CLOTHES SO HE COULD GIVE HER A BETTER BACK MASSAGE DO YOU BELIEVE A MAN WHO WOULD DO THAT IS IN LOVE WITH YOU MRS MELING I DON'T KNOW PROSECUTOR THE DAY THAT YOU WERE DISCHARGED FROM THE HOSPITAL HE TOLD FRIENDS OVER DINNER THAT YOU WERE A SMART LADY BUT THE NEXT TIME HE GOT MARRIED IT WOULD BE TO A WOMAN WITH NO BRAINS BIG BREASTS AND NICE LEGS IS THAT THE WAY A MAN TALKS WHEN HE IS IN LOVE WITH YOU MRS MELING WEEPING I DON'T KNOW I DON'T KNOW THE OUTCOME OF THE CASE AGAINST MR MELING IS UNCERTAIN IF CONVICTED OF FEDERAL PRODUCTTAMPERING CHARGES HE COULD BE SENTENCED TO LIFE IN PRISON BUT THE FBI HAS NO HARD EVIENCE SUCH AS FINGERPRINTS ON A JAR OF CYANIDE AND ON THE WITNESS STAND MR MELING INSISTED ON HIS INNOCENCE WHILE PARRYING QUESTIONS THE BIG INSURANCE POLICY ON MRS MELING WAS MERELY TO CONVINCE CLIENTS TO BUY BIG POLICIES HE SAID MR MELING AND THE TOPLESS DANCERS TESTIFIED THAT THEY DIDN'T HAVE SEX AND MR MELING SAID HE FREQUENTED TOPLESS BARS JUST TO TALK TO THE DANCERS THE BOTTOM LINE MR MELING DECLARED IS THAT I LOVE JENNIFER AND SHE LOVES ME WHAT WILL HAPPEN TO MRS MELING TORN BETWEEN THE PROSECUTOR'S CHARGES AND HER LOVE FOR HER SPOUSE ALSO IS UNCERTAIN THE ENTIRE TIME SINCE I HAVE BEEN POISONED I HAVE BEEN STRUGGLING AND CONFUSED MRS MELING SAID ON THE WITNESS STAND I HAVE BEEN A VICTIM OVER AND OVER AGAIN AND IT DOESN'T SEEM TO END 9303310133 930331 WHO'S NEWS TOWERS FINANCIAL GETS TRUSTEE NEW YORK DOMINIC DINAPOLI A PARTNER AT THE ACCOUNTING FIRM PRICE WATERHOUSE HAS BEEN SELECTED AS THE BANKRUPTCY TRUSTEE FOR TOWERS FINANCIAL CORP A LARGE BILL COLLECTING CONCERN MR DINAPOLI WHO IS CODIRECTOR OF PRICE WATERHOUSE'S CORPORATE RECOVERY DEPARTMENT WILL OVERSEE THE OPERATIONS OF TOWERS AND ITS FIVE HEALTHCARE BILL COLLECTION SUBSIDIARIES WHICH HAVE ALSO FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE MR DINAPOLI'S NAME WAS PUT FORWARD BY THE OFFICE OF THE US TRUSTEE A DIVISION OF THE DEPARTMENT OF JUSTICE 9303310132 930331 HORIZON HEALTHCARE CREDIT LINE ALBUQUERQUE NM HORIZON HEALTHCARE CORP SAID IT OBTAINED A THREEYEAR 33 MILLION VARIABLERATE CREDIT LINE FROM BOATMEN'S NATIONAL BANK OF ST LOUIS AND FIRST INTERSTATE BANK OF TEXAS THE OPERATOR OF LONGTERM HEALTH CARE CENTERS SAID IT CAN CHOOSE AN INTEREST RATE BASED ON EITHER THE LONDON INTERBANK OFFER RATE PLUS 25 PERCENTAGE POINTS OR THE PRIME RATE PLUS 05 PERCENTAGE POINT THE COMPANY SAID THE LOAN WILL BE USED TO FINANCE ACQUISITIONS AND EXPANSION OF ITS SPECIALTY SERVICES AND PROGRAMS BOATMEN'S IS A UNIT OF BOATMEN'S BANCSHARES INC AND FIRST INTERSTATE IS A UNIT OF FIRST INTERSTATE BANCORP 9303310131 930331 NEW NAME FOR LONDON EXCHANGE LONDON OM LONDON CHANGED ITS NAME EFFECTIVE TODAY TO OMLX THE LONDON SECURITIES AND DERIVATIVES EXCHANGE IN ITS BID TO BECOME THE LINCHPIN OF A PANEUROPEAN FUTURES AND OPTIONS NETWORK THE EXCHANGE ESSENTIALLY A SERIES OF COMPUTER TRADING TERMINALS THROUGHOUT EUROPE WITH A CENTRAL LINK IN LONDON HAS UNTIL NOW TRADED SPECIALIZED FUTURES AND OPTIONS CONTRACTS ON SWEDISH AND DUTCH EQUITIES CHIEF EXECUTIVE OFFICER LYNTON JONES SAID THE GROUP WILL BEGIN EXPANDING INTO OTHER DERIVATIVES MARKETS INCLUDING OPTIONS ON UK STOCKS AN AREA THAT HE SEES AS UNDERDEVELOPED 9303310130 930331 WHO'S NEWS SUNBEAMOSTER EXCHIEF LOSES DIRECTOR'S SEAT BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL PROVIDENCE RI SUNBEAMOSTER CO SAID OUSTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER PAUL B KAZARIAN HAS BEEN REMOVED FROM THE COMPANY'S BOARD OF DIRECTORS THE HOUSEHOLD AND OUTDOOR PRODUCTS COMPANY ALSO SAID THAT ITS TWO LARGEST SHAREHOLDERS MUTUAL SERIES FUNDS AND STEINHARDT VENTURES INC HAD REMOVED MR KAZARIAN AS GENERAL PARTNER OF SUNBEAMOSTER EQUITIES LP A PARTNERSHIP THAT CONTROLS THE COMPANY AND OWNS 77 OF ITS SHARES MR KAZARIAN SAYS HE CONTESTS THE LEGALITY OF THE SUNBEAMOSTER AND INVESTOR MOVES AGAINST HIM IN FILINGS THAT ARE PART OF LITIGATION BETWEEN HIM AND MUTUAL SERIES AND STEINHARDT MR KAZARIAN ASSERTED YESTERDAY THAT THE TWO INVESTORS CONSPIRED WITH TOP MANAGEMENT TO OUST HIM SO THEY COULD ENRICH THEMSELVES BY CASHING OUT THEIR SUNBEAM STAKES HE IS COUNTERSUING IN THE CASE IN DELAWARE CHANCERY COURT SAYING IT IS HIS RIGHT TO RETAIN HIS POSITION AS THE COMPANY'S CHAIRMAN AND MEMBER OF ITS EXECUTIVE COMMITTEE LATE LAST YEAR TOP SUNBEAM EXECUTIVES COMPLAINED TO DIRECTORS THAT MR KAZARIAN WAS BEHAVING IN A BIZARRE MANNER AND THE BOARD AFTER CONDUCTING AN INDEPENDENT INVESTIGATION FIRED THE CHIEF EXECUTIVE IN EARLY JANUARY MR KAZARIAN WHO IS GENERALLY CREDITED WITH HAVING RESCUED SUNBEAMOSTER FROM BANKRUPTCY WAS SAID TO HAVE HAZED SUBORDINATES MADE OFFCOLOR COMMENTS TO WOMEN AND RENEGED ON AGREEMENTS HE HAS DENIED THE ALLEGATIONS UNTIL YESTERDAY MR KAZARIAN WAS ABLE TO HOLD OFF FURTHER ACTION AGAINST HIM HAVING WON A TEMPORARY RESTRAINING ORDER BY A NEW YORK STATE COURT BARRING HIS REMOVAL AS DIRECTOR YESTERDAY THAT ORDER WAS LIFTED THE GENERAL PARTNER OF SUNBEAMOSTER EQUITIES A LIMITED PARTNERSHIP WHOSE SUNBEAM STAKE IS VALUED AT ABOUT 12 BILLION HAS CONTROL OVER MOST ACTIONS OF THE PARTNERSHIP MUTUAL SERIES AND STEINHARDT HOLD ABOUT A 40 STAKE IN THE PARTNERSHIP EACH THE OTHER 20 IS OWNED BY JAPONICA PARTNERS LPWHICH ACTS AS GENERAL PARTNER AND IS CONTROLLED BY MR KAZARIAN IN A RELATED SUIT FILED LAST MONTH MR KAZARIAN'S TWO PARTNERS IN JAPONICA SECRETARY AND DIRECTOR MICHAEL LEDERMAN AND CHIEF FINANCIAL OFFICER ROBERT SETRAKIAN ARE SEEKING TO INCREASE THEIR CLAIM TO PARTNERSHIP'S HOLDINGS TO ONETHIRD EACH CURRENTLY MR KAZARIAN CLAIMS HE OWNS 99 OF JAPONICA VALUED AT ABOUT 225 MILLION AND THAT MR LEDERMAN HAS A 1 STAKE AND MR SETRAKIAN IS A PARTNER WITH NO STAKE 9303310129 930331 MITTERRAND'S RISE VOLTEFACE FALL A CLINTON PORTENT BY ROBERT L BARTLEY FRANCOIS MITTERRAND THE GRAND OLD MAN OF THE FRENCH LEFT CAME TO OFFICE AS RONALD REAGAN WAS LEADING THE US TO THE RIGHT NOW WITH FORMER CENTRIST BILL CLINTON IN A POSTELECTION PLUNGE TO THE LEFT PRESIDENT MITTERRAND HAS JUST PRESIDED OVER THE DEMISE OF FRENCH SOCIALISM SOMEONE IT SEEMS IS OUT OF STEP THE ELECTORAL DEBACLE OF THE FRENCH LEFT CAN SCARCELY BE EXAGGERATED THE SOCIALISTS AND THEIR ALLIES FELL FROM A MAJORITY IN THE PREVIOUS PARLIAMENT TO SOME 70 SEATS AGAINST 484 FOR THE COMBINED FORCES OF THE RIGHT A LONG LIST OF SOCIALIST LEADERS DEFEATED IN THEIR OWN CONSTITUENCIES INCLUDED FORMER PRIME MINISTER MICHEL ROCARD AND FOREIGN MINISTER ROLAND DUMAS THEIR PARTY'S PATRON SAINT 1936 PRIME MINISTER LEON BLUM PRESUMABLY WATCHED FROM SOCIALIST HEAVEN AS HIS HEIRS WENT DOWN TO DEFEAT IN HIS PERSONAL CONSTITUENCY WHICH SOCIALISTS HAD HELD FOR 104 YEARS IN A SENSE THOUGH THIS SWEEPING DEFEAT IS NO LESS AMAZING THAN THE PERSONAL DURABILITY OF THE 76YEAROLD PRESIDENT AS AN ECONOMIC PROGRAM SOCIALISM HAS BEEN DEAD IN FRANCE FOR A DECADE NOW BUT AS A POLITICIAN MR MITTERRAND HAS SOLDIERED ON HE WON REELECTION IN 1988 AND EVEN NOW WILL BE PRESIDENT FOR TWO MORE YEARS AS THE FRENCH SAY COHABITING WITH A CONSERVATIVE LEGISLATURE AND PRIME MINISTER HE SHARES THIS RESILIENCE WITH BILL CLINTON WHO WON THE PRESIDENCY ON THE REBOUND FROM THE GENNIFER FLOWERS FIRESTORM AND OF COURSE PRESIDENT CLINTON IS NOW BIDDING SWEEPING ECONOMIC AND POLITICAL REFORM AS PRESIDENT MITTERRAND DID IN 1981 THE FRENCH LEFT SAW THE MITTERRAND ELECTION THAT YEAR AS ITS ULTIMATE VINDICATION AND ITS HISTORIC OPPORTUNITY THE PRESIDENT RAN IN COALITION WITH THE COMMUNIST PARTY AND PROCLAIMED A BREAK WITH CAPITALISM HIS ADMINISTRATION NATIONALIZED THE FRENCH BANKS AND MANY LARGE INDUSTRIAL COMPANIES HE IMPOSED PRICE CONTROLS TO CURB EXORBITANT PROFITS AND PASSED A BIG TAX ON MILLIONAIRES NOT ONLY ON THEIR INCOMES BUT ON ACCUMULATED WEALTH THE SOCIALISTS IN SHORT SEIZED THE CHANCE TO ENACT THEIR DREAMS UNHAPPILY FOR THEM THIS PROVIDED AN EMPIRICAL TEST OF THEIR IDEAS THEY QUICKLY PROVED AN ECONOMIC FLOP GROWTH STAGNATED AS THE REST OF THE WORLD RECOVERED UNEMPLOYMENT ROSE THE FRANC AFTER THREE DEVALUATIONS IN TWO YEARS REACHED 10 TO THE DOLLAR SO IN 1983 M MITTERRAND THREW IN THE TOWEL ON SOCIALIST ECONOMICS SOON ADOPTING THE SAME REAGANESQUE APPROACH AS OTHER DEVELOPED NATIONS THE SOCIALIST GOVERNMENT WAS CUTTING TAXES AND ENCOURAGING STOCK OPTIONS OUR CORRESPONDENT IN FRANCE OPENED A 1984 DISPATCH FRENCH SOCIALISM IS AN IDEA WHOSE TIME HAS GONE IN 1986 THE CONSERVATIVES WON THE PARLIAMENT AND PRIME MINISTER JACQUES CHIRAC PUSHED THE FREEENTERPRISE PROGRAM EVEN FURTHER IN THIS PERIOD OF COHABITATION REMARKABLY PRESIDENT MITTERRAND ONLY GAINED IN STATURE IN PART FOR HIS CHAMPIONING OF A UNITED EUROPE AND HIS PROWESTERN FOREIGN POLICY INCLUDING STRONG SUPPORT FOR THE CRUCIAL DEPLOYMENT OF PERSHING MISSILES BY 1988 HE WAS RUNNING FOR REELECTION ON A PLATFORM OF TECHNOLOGICAL LEFTISM STRIKINGLY FAMILIAR TO THE THEMES OF MR CLINTON'S 1992 CAMPAIGN CANDIDATE MITTERRAND PLEDGED A UNITED FRANCE A FRANCE ON THE MOVE THAT CREATES THAT INVENTS THAT PRODUCES HE WON THE PRESIDENCY BY A WIDE MARGIN THOUGH VOTERS TRUSTED HIS PARTY WITH ONLY A THIN PARLIAMENTARY EDGE AND THE FRENCH LEFT LIMPED TOWARD THIS MONTH'S DEBACLE A SHORT SWING THROUGH FRANCE DURING THE CAMPAIGN IN MY CASE A FEW DAYS IN PARIS AND BRITTANY IS ENOUGH TO MAKE CLEAR THAT ECONOMICS WAS NOT THE DECISIVE POINT IN THIS CAMPAIGN YES AS THROUGHOUT THE WORLD THE INCUMBENT PARTY WAS BATTERED BY ECONOMIC FORCES BEYOND ITS CONTROL BUT IT IS BY NO MEANS CLEAR THAT THE RIGHT WILL BE BOLD ENOUGH TO USE ITS HUGE MAJORITIES TO DO ANYTHING DRAMATIC ON SOME DECISIVE STEPS NOTABLY BREAKING THE FARMER'S VETO OVER THE GATT THE RIGHT'S CAMPAIGN DEMAGOGED EVEN MORE THAN THE LEFT'S NO DRAMATIC ECONOMIC CHANGE IS EXPECTED IF ONLY BECAUSE THE SOCIALISTS HAD ALREADY ADOPTED CAPITALIST ECONOMICS THE SOCIALISTS COLLAPSED RATHER BECAUSE THEY LOST THEIR ONE REMAINING ASSET AN IMAGE OF MORAL SUPERIORITY LIKE PARTIES OF THE LEFT THROUGHOUT THE WORLD THE SOCIALISTS WERE SEEN AS THE PARTY OF THE LITTLE GUY THE PARTY WITH A HEART THIS IMAGE WAS DECIMATED BY A SERIES OF FINANCIAL SCANDALS WITH LEFTIST AND RIGHTIST POLITICIANS DIPPING HANDS INTO PUBLIC COOKIE JARS AND EVEN MORE SO BY THE BLOOD SCANDAL IN WHICH THE GOVERNMENT SUBJECTED THE NATION'S HEMOPHILIACS TO AIDSCONTAMINATED BLOOD RATHER THAN USE A TEST DEVELOPED OUTSIDE OF FRANCE IF TECHNOCRATIC NATIONALISM HURTS THE MOST UNFORTUNATE WHO NEEDS SOCIALISTS TO RUN A CAPITALIST ECONOMY AND WHEN THE SOCIALISTS LOST THE MORAL MANTLE TWO THINGS DID NOT HAPPEN THE ECOLOGY PARTY THAT BID FOR MORAL SUPERIORITY FAILED TO ELECT A SINGLE MEMBER OF PARLIAMENT ALSO SHUT OUT WAS THE COUNTERREACTION JEANMARIE LE PEN'S NATIONAL FRONT THE VOTERS TURNED TO THE TWO PRINCIPAL RIGHTOFCENTER PARTIES GIVING THEM A HUGE IF PERHAPS PROBATIONARY MAJORITY THERE IS OF COURSE NO PORTENT HERE FOR THE US IF YOU BELIEVE THAT PRESIDENT CLINTON'S ECONOMIC PROGRAM WILL ACTUALLY WORK UNLIKE PRESIDENT MITTERRAND'S ADMITTEDLY MORE EXTREME 1981 INITIATIVES BUT FOR THOSE OF US WHO THINK BIG TAX BOOSTS DON'T STIMULATE ECONOMIES OR CUT DEFICITS THE MITTERRAND CAREER IS SUGGESTIVE AFTER CLINTON I OF THE CAMPAIGN AND CLINTON II OF THE 100 DAYS THERE WILL BE A CLINTON III WILL HE PROVE AS DURABLE AS FRANCOIS MITTERRAND OR PERHAPS THIS TIME WITH THE ADMINISTRATION OUT OF STEP WITH THE ELECTORATE ON GAYS IN THE MILITARY THE FIRING OF US ATTORNEYS AND A SPREADING CONCERN WITH VALUES WILL THE LEFT'S MORAL PRETENSIONS VANISH WITH ITS ECONOMIC ONES MR BARTLEY IS EDITOR OF THE JOURNAL 9303310128 930331 ECONOMY INSURERS' LOSSES ARE 162 BILLION IN WINTER STORM SHARPLY HIGHER ESTIMATE LIKELY TO BOOST PRICES ON ALL TYPES OF POLICIES BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE INSURANCE INDUSTRY WILL HAVE AN ESTIMATED 162 BILLION IN LOSSES FROM THE FIERCE WINTER STORM THAT SWEPT THE EAST COAST EARLIER THIS MONTH MAKING IT THE FOURTHCOSTLIEST DISASTER IN US HISTORY THE LOSSES FAR HIGHER THAN EARLIER ESTIMATES MAKE ADDITIONAL PRICE INCREASES FOR INSURANCE MORE LIKELY FOLLOWING HURRICANES ANDREW AND INIKI LAST YEAR INSURERS RAISED PREMIUMS ON PROPERTY INSURANCE BUT RESISTED INCREASES ON THEIR CASUALTY LINES BUT A NEW REPORT BY AM BEST CO SAID STORMS LAST YEAR SEVERELY WEAKENED THE FINANCIAL STRENGTH OF THE INDUSTRY AND ANALYSTS NOW EXPECT ALL INSURANCE PRICES TO INCREASE THIS YEAR THE LOSSES FROM THE EAST COAST STORM RAISE TO 264 BILLION THE AMOUNT INSURERS HAVE PAID ON PROPERTY CLAIMS SINCE THE BEGINNING OF THE YEAR WHICH INCLUDES 510 MILLION PAID ON THE WORLD TRADE CENTER BOMB EXPLOSION THAT IS NEARLY AS MUCH AS THE INDUSTRY HAD IN LOSSES ON ALL CATASTROPHES DURING 1990 ACCORDING TO THE AMERICAN INSURANCE SERVICES GROUP THE STORM WHICH CLAIMED MORE THAN 230 LIVES HIT 24 STATES AND CAUSED 500 MILLION IN DAMAGE IN FLORIDA ALONE AT LEAST 50 TORNADOES SPUN THROUGH THE STATE DURING THE STORM RIPPING OFF ROOFS AND HURLING TREES ONTO HOMES AND BUILDINGS IN OTHER SOUTHERN STATES ROOFS COLLAPSED UNDER THE WEIGHT OF SNOW AWNINGS CAR PORTS SCREENEDIN PORCHES AND OTHER STRUCTURES THAT WEREN'T BUILT TO ENDURE SNOW GOT HAMMERED THE TRADE GROUP ESTIMATE OF 162 BILLION IN STORM LOSSES IS DOUBLE THE ESTIMATE MADE IMMEDIATELY AFTER THE STORM BY AM BEST AN INSURANCE RATING FIRM WE CLEARLY UNDERESTIMATED SAID AM BEST SENIOR VICE PRESIDENT JOHN SNYDER THE STORM HIT FLORIDA MARCH 11 AND EXITED BY WAY OF MAINE ON MARCH 14 IF COMPANIES RAISED PRICES ACROSS ALL THEIR PRODUCT LINES IT WOULD END A SIXYEAR PRICE WAR THAT HAS ERODED INDUSTRY PROFITS ANALYSTS HAD EXPECTED INCREASES FOLLOWING HURRICANES ANDREW AND INIKI WHICH COST THE INDUSTRY MORE THAN 17 BILLION ACCORDING TO A RECENT AM BEST REPORT THE INDUSTRY WITHSTOOD SWEEPING PRICE INCREASES ONLY BECAUSE IT LIQUIDATED TWOTHIRDS OF ITS BOND INVESTMENTS REALIZING 9 BILLION IN CAPITAL GAINS THE LIQUIDATION ALLOWED THE INDUSTRY TO FINISH THE YEAR WITH 163 BILLION IN CAPITAL SLIGHTLY MORE THAN THE YEAR BEFORE NEVERTHELESS THE INDUSTRY IS WEAKER BECAUSE OF THE HURRICANES ACCORDING TO AM BEST INSURERS REINVESTED THE PROCEEDS FROM THE BOND SALES AT LOWER INTEREST RATES AND AS A RESULT SAW THEIR INVESTMENT INCOME DECLINE LAST YEAR FOR THE FIRST TIME IN 25 YEARS THE LOSSES FROM THE HURRICANES DRAINED THE INDUSTRY OF SUBSTANTIAL FINANCIAL STRENGTH ACCORDING TO THE REPORT THIS HAS MASSIVE IMPLICATIONS FOR THE INDUSTRY SAID MICHAEL FRINQUELLI AN ANALYST WITH SALOMON BROTHERS INC THIS MIGHT BE THE BIGGEST LONGTERM EFFECT FROM ANDREW HE ESTIMATES THE INDUSTRY'S INVESTMENT INCOME WILL FALL BY 5 TO 10 THIS YEAR WHICH IS ALL THE MORE IMPORTANT BECAUSE INVESTMENT INCOME IS THE INDUSTRY'S ONLY SOURCE OF PROFITS INSURERS GENERALLY LOSE MONEY ON UNDERWRITING BUT MAKE IT UP ON THE MONEY THEY MAKE BY INVESTING PREMIUMS MR FRINQUELLI SAID LOWER INVESTMENT INCOME ADDS PRESSURE TO PRICES ON LINES SUCH AS MALPRACTICE INSURANCE ON WHICH INSURERS DON'T KNOW THEIR LOSSES UNTIL YEARS AFTER THE PREMIUM IS COLLECTED INSURERS PRICE SUCH PRODUCTS BY MAKING ASSUMPTIONS ABOUT THEIR INVESTMENT RETURNS 9303310127 930331 POLITICS & POLICY WHITE HOUSE DROPS STRICT RULES ON USE OF FEDERAL LAND BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE FACE OF OPPOSITION FROM DEMOCRATIC SENATORS FROM WESTERN STATES THE WHITE HOUSE IS RETREATING FROM ITS AMBITIOUS PLAN TO TIGHTEN CERTAIN RULES AND RAISE FEES IN ONE SWOOP FOR RANCHERS MINERS AND OTHERS WHO USE FEDERAL RESOURCES THOUGH THE ADMINISTRATION INSISTS IT IS STILL COMMITTED TO THE CHANGES IT PLANS TO REMOVE THE PROVISIONS FROM ITS FISCAL 1994 BUDGET PROPOSAL THESE PROPOSALS WOULD RAISE FEES FOR RANCHERS WHO GRAZE CATTLE ON FEDERAL LANDS IMPOSE A 12 1/2 ROYALTY ON HARDROCK MINERALS MINED ON FEDERAL PROPERTY AND PHASE OUT TIMBER SALES THAT RAISE LESS REVENUE FOR THE FEDERAL GOVERNMENT THAN THEY COST TO HOLD THE BUDGET PACKAGE IS CURRENTLY BEFORE A HOUSESENATE CONFERENCE COMMITTEE REMOVING THE PROVISIONS PRESSURES LAWMAKERS TO TAP OTHER SOURCES TO COME UP WITH THE ESTIMATED 500 MILLION IN REVENUE THE PROVISIONS WERE DESIGNED TO PRODUCE OVER FOUR YEARS THE CHANGE FOLLOWED WEEKS OF NEGOTIATIONS WITH THE SENATORS INCLUDING DEMOCRATIC SENS MAX BAUCUS OF MONTANA AND BEN NIGHTHORSECAMPBELL OF COLORADO LAST WEEK A PROPOSAL BY REPUBLICAN SEN PETE DOMENICI OF NEW MEXICO TO KILL THESE ITEMS FAILED ON THE SENATE FLOOR ADMINISTRATION OFFICIALS CONTEND THE DECISION REFLECTS A CHANGE IN TACTICS RATHER THAN A SUBSTANTIVE RETREAT THEY NOW PLAN TO EFFECT THE CHANGES THROUGH ADMINISTRATIVE MEANS OR OTHER LEGISLATION KEVIN SWEENEY A SPOKESMAN FOR INTERIOR SECRETARY BRUCE BABBITT SAID THE ADMINISTRATION IS GOING TO PUSH TO MAKE SURE WE CHANGE THESE PRACTICES THE PRINCIPLE OF BRINGING THESE PRACTICES CLOSER TO MARKET VALUE IS A SOUND ONE IT HAS LOTS OF SUPPORT IT'S GOING TO HAPPEN THE DECISION DREW MIXED REACTION FROM ENVIRONMENTAL GROUPS WHICH HAVE PUSHED FOR THE CHANGES BUT WHICH HAVE GENERALLY BEEN SOLID SUPPORTERS OF CLINTON ENVIRONMENTAL POLICY SOME GROUPS CONTENDED THAT THERE HADN'T BEEN A SUBSTANTIVE RETREAT WHILE OTHERS BLASTED THE DECISION I DON'T THINK I'VE EVER SEEN A WHITE FLAG GET PUT UP SO FAST DECLARED MICHAEL FRANCIS DIRECTOR OF THE NATIONAL FOREST PROGRAM AT THE WILDERNESS SOCIETY THE CLINTON WHITE HOUSE CAME OUT CHARGING BUT ONCE CLOSE ENOUGH TO SEE THE WHITES OF THE ENEMY'S EYES TURNED TAIL REP MIKE SYNAR WHO HAS BEEN A LEADING CONGRESSIONAL PROPONENT OF THE CHANGES THE ADMINISTRATION IS SEEKING SAID WE'RE DISAPPOINTED BUT NOT DISCOURAGED THE OKLAHOMA DEMOCRAT PREDICTED THAT THE CHANGES WOULD STILL OCCUR AT THE VERY LEAST THE ADMINISTRATION'S ACTION REFLECTS A NEW VISION OF POLITICAL REALITY THAT CONTRASTS SHARPLY WITH OFFICIALS' REFORMIST VIGOR WHEN THE BUDGET PROPOSALS WERE ORIGINALLY ANNOUNCED AT THAT TIME SECRETARY BABBITT DESCRIBED THE CLINTON BUDGET AS A DELIBERATE ATTEMPT TO TAKE ON EVERY SPECIAL INTEREST IN AMERICA ALL AT THE SAME TIME NOW OPPONENTS WILL BE ABLE TO TAKE ON THE PROVISIONS ONE BY ONE AND HAVE ADDITIONAL TIME TO MAKE THEIR CASE IN THE PAST WESTERN STATES' ECONOMIC INTERESTS HAVE ALWAYS MANAGED TO DEFEAT THESE PROPOSALS WHEN THEY HAVE COME UP SEPARATELY IN CONGRESS THOUGH PROPONENTS HAVEN'T HAD WHITE HOUSE SUPPORT BEFORE NOW THE INTERIOR DEPARTMENT SAID THAT THE ADMINISTRATION STILL PLANS TO PUSH FOR THE IMPOSITION OF A MINING ROYALTY AS PART OF A BROADER MINING LAW OVERHAUL THAT IS PENDING IN BOTH HOUSES OF CONGRESS THE LEADING PROPOSALS HOWEVER CALL FOR A ROYALTY OF JUST 8 RATHER THAN 12 1/2 SOME OF THE PROPOSED CHANGES AFFECTING GRAZING AND TIMBER POLICY COULD BE DONE ADMINISTRATIVELY ALTHOUGH OTHERS WILL REQUIRE LEGISLATION 9303310126 930331 YIELDS ON CDS ENDED WEEK LITTLE CHANGED NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO 266 FROM 267 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS REMAINED AT 486 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS CREPT UP TO 311 FROM 310 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 523 FROM 516 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE ROSE TO 276 FROM 273 ON FIVEYEAR JUMBOS THE AVERAGE EDGED UPWARD TO 498 FROM 494 ACCORDING TO BANXQUOTE 9303310125 930331 REVIEW & OUTLOOK EDITORIAL ASIDES MAD MAX SENATOR MAX BAUCUS MANAGED TO GET HIMSELF ALL STEAMED UP THE OTHER DAY OVER CRITICISM THAT PRESIDENT CLINTON'S TRADE POLICY HAS BEEN COMING ACROSS AS CONFUSED SO THE MONTANA DEMOCRAT WEIGHED INTO THE DEBATE WITH A DIFFERENT INTERPRETATION LET'S APPLAUD OUR PRESIDENT FOR BEING CLEVER THE WALL STREET JOURNAL WOULD CRITICIZE HIM FOR TAKING UNPREDICTABLE ZIGZAGS' IN TRADE NEGOTIATIONS BUT DO WE REALLY WANT TO BE PREDICTABLE AS WE SIT DOWN TO NEGOTIATE WITH OUR TRADING PARTNERS 9303310124 930331 OUTLINE IS GIVEN FOR EXPANSION OF A TAX CREDIT SHARP INCREASE IS PLANNED IN BID TO EASE HARDSHIP AMONG WORKING POOR BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SPELLED OUT PLANS TO EXPAND THE EARNED INCOME TAX CREDIT ITS MAIN PRESCRIPTION FOR ALLEVIATING HARDSHIP AMONG THE WORKING POOR WHEN FULLY EFFECTIVE THE ADMINISTRATION'S PROPOSAL WOULD SHARPLY INCREASE THE TAX CREDIT FOR LOWINCOME FAMILIES WITH CHILDREN AND A WORKING PARENT FAMILIES WITH TWO OR MORE CHILDREN COULD RECEIVE A MAXIMUM BENEFIT OF 3371 BEGINNING IN 1995 COMPARED WITH 1998 UNDER CURRENT LAW AND FOR THE FIRST TIME POOR WORKERS WHO DON'T HAVE CHILDREN ALSO WOULD BE ELIGIBLE FOR THE CREDIT THE GOAL IS TO FULFILL A MAJOR CLINTON CAMPAIGN PROMISE TO MAKE WORK PAY IN HIS BOOK PUTTING PEOPLE FIRST MR CLINTON PLEDGED TO EXPAND THE TAX CREDIT SO THAT NO ONE WHO WORKS FULLTIME HAS TO RAISE HIS OR HER CHILDREN IN POVERTY AN EXPANDED CREDIT ALSO WOULD HELP SHIELD LOWINCOME WORKERS FROM THE IMPACT OF THE ADMINISTRATION'S PROPOSED BROADBASED ENERGY TAX OFFICIALS SAY THE COST OF THE EXPANDED PROGRAM IS CONSIDERABLE IN FEBRUARY MR CLINTON PUT THE COST AT 268 BILLION OVER FIVE YEARS TREASURY DEPARTMENT OFFICIALS SAY THE FINAL PROPOSAL RELEASED YESTERDAY WILL COST MORE THAN THAT BUT THEY SAID THE INCREASE WOULD BE OFFSET BY SCALING BACK PROPOSED BOOSTS IN THE FOODSTAMP PROGRAM THE EARNED INCOME TAX CREDIT ORIGINALLY SHEPHERDED THROUGH CONGRESS IN 1975 BY FORMER LOUISIANA SEN RUSSELL LONG IS QUITE POPULAR BOTH LIBERAL AND CONSERVATIVE ANALYSTS SAY IT ENCOURAGES PEOPLE TO WORK ROBERT GREENSTEIN DIRECTOR OF THE CENTER ON BUDGET AND POLICY PRIORITIES CALLED THE ADMINISTRATION PROPOSAL OUTSTANDING HE SAID THAT ALONG WITH FOOD STAMPS IT WOULD LIFT FROM POVERTY FAMILIES OF FOUR OR FEWER PEOPLE WHO HAVE AT LEAST ONE FULLTIME YEARROUND WORKER EARNING THE MINIMUM WAGE FOR A FAMILY OF FOUR HE SAID THE POVERTY LINE IS EXPECTED TO BE 14773 FOR 1993 THE CENTER IS A LIBERAL THINK TANK THAT SPECIALIZES IN POVERTY ISSUES HERE'S HOW THE EXPANDED CREDIT WOULD WORK FOR A FAMILY WITH TWO OR MORE CHILDREN IF THE CLINTON PLAN WERE FULLY IN EFFECT IN 1995 AS PROPOSED FAMILIES WOULD RECEIVE A CREDIT EQUAL TO 397 OF THE FIRST 8500 OF THEIR EARNED INCOME THAT WOULD BE UP FROM THE CURRENT 25 THE CREDIT WOULD BE 3371 FOR PEOPLE EARNING BETWEEN 8500 AND 11000 IT WOULD BEGIN DECLINING AT INCOME LEVELS ABOVE 11000 AND WOULD BE ELIMINATED ENTIRELY FOR PEOPLE EARNING 28000 OR MORE CURRENTLY PEOPLE EARNING MORE THAN 23760 DON'T QUALIFY FOR ANY CREDIT THE EARNED INCOME TAX CREDIT IS REFUNDABLE MEANING THAT IF A POOR FAMILY OWES NO FEDERAL INCOME TAX IT RECEIVES A DIRECT PAYMENT FROM THE GOVERNMENT IF THE FAMILY DOES OWE TAXES THE CREDIT REDUCES THE AMOUNT OWED ROBERT SHAPIRO VICE PRESIDENT OF THE PROGRESSIVE POLICY INSTITUTE WHICH HAS BEEN CLOSELY ALIGNED WITH PRESIDENT CLINTON PRAISED THE ADMINISTRATION PROPOSAL BUT HE URGED CAUTION IN RAISING THE INCOME CEILING SAYING THAT IT COULD MAKE THE CREDIT AVAILABLE TO INDIVIDUALS ALREADY IN THE ECONOMIC MAINSTREAM HE TOLD A SENATE COMMITTEE LAST WEEK THAT HE PREFERRED TO KEEP THE CURRENT CEILING IN FEBRUARY THE ADMINISTRATION WAS TALKING ABOUT SETTING THE INCOME CEILING FOR A FAMILY OF FOUR EVEN HIGHER AT 30000 BUT OFFICIALS FOUND THAT THE EARLIER PLAN DIDN'T PROVIDE ENOUGH HELP TO LOWERINCOME PEOPLE SO THEY REDESIGNED IT THE NEW PROPOSAL WOULD DO AWAY WITH TWO SUPPLEMENTAL CREDITS ONE TO HELP FAMILIES PAY FOR HEALTH INSURANCE AND ANOTHER FOR FAMILIES WITH CHILDREN UNDER ONE YEAR OLD ADMINISTRATION OFFICIALS AND OUTSIDE ANALYSTS ARGUE THAT THESE CREDITS MAKE THE PROGRAM TOO COMPLEX IN ADDITION THEY WON'T BE NEEDED IF THE EXPANDED TAX CREDIT AND THE ADMINISTRATION'S HEALTH OVERHAUL PLAN ARE APPROVED THEY SAID THE NEW CREDIT FOR CHILDLESS WORKERS WOULD BE SMALL A MAXIMUM OF 306 BUT WOULD HELP OFFSET THE IMPACT OF THE ENERGY TAX ANALYSTS SAID 9303310123 930331 WHO'S NEWS YOUNG TO QUIT VOLKSWAGEN OF AMERICA AS AUTO MAKER STRUGGLES WORLDWIDE BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL AUBURN HILLS MICH VOLKSWAGEN OF AMERICA INC SAID WILLIAM J YOUNG WILL RESIGN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE TOMORROW HIS DEPARTURE COMES AT A TIME WHEN VOLKSWAGEN AG'S OPERATIONS ARE SHAKY IN BOTH THE US AND ABROAD IN THE 1960S AND 1970S VOLKSWAGEN WAS THE NATION'S BIGGEST IMPORT AUTO MAKER BUT TODAY THE GERMAN COMPANY'S PRESENCE IN THE US HAS FALLEN INTO NEAROBSCURITY VOLKSWAGEN'S SALES HERE DROPPED 441 THROUGH MARCH TO 7281 VEHICLES FROM THE COMPARABLE PERIOD A YEAR AGO IN FACT VOLKSWAGEN'S SHARE OF THE US CAR AND TRUCK MARKET IS BARELY 1 WE LOST OUR DIRECTION AT SOME POINT IN TIME AND I DON'T KNOW WHEN THAT WAS SAID STEVE WILHITE VOLKSWAGEN'S GENERAL SALES MANAGER WE DON'T STAND FOR ANYTHING IN THE MINDS OF AMERICANS DESPITE WEAK SALES VOLKSWAGEN SAID MR YOUNG POINTED THE COMPANY IN THE RIGHT DIRECTION LAST YEAR HE RAIDED THE SATURN CORP UNIT OF GENERAL MOTORS CORP TAKING TOM SHAVER WHO IS NOW THE VICE PRESIDENT OF VOLKSWAGEN'S CAR DIVISION IN THE US MR YOUNG ALSO HIRED GERD H KLAUSS FROM MERCEDESBENZ OF NORTH AMERICA INC TO RUN AUDI OF AMERICA INC VOLKSWAGEN'S US LUXURYCAR DIVISION FURTHERMORE MR YOUNG CUT VOLKSWAGEN'S US STAFF BY 25 OR SOME 100 EMPLOYEES IN 1991 AND 1992 VOLKSWAGEN IS HAVING A DIFFICULT TIME NOW BUT WE'RE IN THE US FOR THE LONG HAUL SAID A COMPANY SPOKESMAN HE ADDED THAT MR YOUNG LAID THE FOUNDATION FOR OUR RETURN ANALYSTS AND DEALERS SAY VOLKSWAGEN'S BIGGEST PROBLEM IN THE US IS A DEARTH OF PRODUCTS IN ITS DEALER SHOWROOMS THE COMPANY'S INTRODUCTION OF NEW GOLF AND JETTA MODELS WAS DELAYED FOR NEARLY A YEAR BECAUSE OF QUALITY PROBLEMS THOSE CARS ACCOUNT FOR ROUGHLY 40 OF THE AUTO MAKER'S US SALES THE 1993 CARS ORIGINALLY PLANNED TO BE LAUNCHED IN THE FALL OF 1992 WILL NOW BE INTRODUCED IN JUNE IN THE MEANTIME DEALERS ARE OPERATING WITH INADEQUATE SUPPLIES OF HIGHVOLUME MODELS AND BECAUSE OF THE LATE INTRODUCTION OF THE GOLF AND JETTA THERE WILL BE A SHORT 1993 MODEL RUN VW EXPECTS TO BEGIN THE 1994 MODEL YEAR IN THE FALL ADDITIONALLY VOLKSWAGEN'S PRICES ARE STEEP IN A MARKET THAT DEMANDS VALUE FOR EXAMPLE VOLKSWAGEN'S LEAST EXPENSIVE CAR THE FOX STARTS AT 8910 MORE THAN 900 HIGHER THAN TOYOTA'S ENTRYLEVEL TERCEL ANALYSTS SAY VOLKSWAGEN'S RECENT RECRUITMENT OF J IGNACIO LOPEZ DE ARRIORTUA WHO HAD BEEN GM'S PURCHASING CZAR SHOULD HELP CUT COSTS AND LOWER PRICES VOLKSWAGEN IS GRAPPLING WITH YET ANOTHER PROBLEM IN THE US ITS PRODUCTS ARE TAILORED TO FIT EUROPEAN TASTES FOR INSTANCE THE 1993 EUROVAN WITH ITS BOXY STYLING AND 25 LITER FIVECYLINDER ENGINE IS POPULAR IN EUROPE BUT THE MIDSIZED VAN IS WOEFULLY UNDERPOWERED AND ODDLY SHAPED FOR AMERICAN TASTES THEIR CARS ARE STILL DESIGNED FOR THE EUROPEAN MARKET SAID CHRISTOPHER CEDERGREN AN AUTO ANALYST WITH AUTOPACIFIC GROUP INC THEY NEED PRODUCTS THAT APPEAL TO AMERICANS ALTHOUGH VOLKSWAGEN OPENED A STUDIO NEAR LOS ANGELES IN 1990 TO DESIGN CARS FOR THE US MARKET THUS FAR IT'S MADE NO NOTICEABLE DIFFERENCE IN THE COMPANY'S OFFERINGS ACCORDING TO ANALYSTS VOLKSWAGEN OFFICIALS ARE AWARE THEY MUST MAKE SOME FAIRLY RADICAL CHANGES TO BOLSTER THE COMPANY'S POSITION IN THE US NONETHELESS ANALYSTS SAY VOLKSWAGEN HAS A STRONG IMAGE AND GOOD PRODUCTS THAT WILL LIKELY SUSTAIN IT THROUGH ITS CURRENT SALES TROUGH VOLKSWAGEN'S PRODUCTS STILL HAVE AN APPEAL TO MANY AMERICANS SAID MR CEDERGREN VOLKSWAGEN OFFICIALS ARE AWARE THEY MUST MAKE SOME FAIRLY RADICAL CHANGES TO BOLSTER THE COMPANY'S POSITION IN THE US NONETHELESS SOME ANALYSTS SAY VOLKSWAGEN HAS A STRONG IMAGE AND GOOD PRODUCTS THAT WILL LIKELY SUSTAIN IT THROUGH ITS CURRENT SALES TROUGH IN WOLFSBURG GERMANY VOLKSWAGEN AG'S CHAIRMAN FERDINAND PIECH RECENTLY WARNED EMPLOYEES THAT AN EXPECTED 20 DROP IN THE GERMAN CAR MARKET WILL LIKELY HIT HARD TWO WEEKS AGO VOLKSWAGEN ANNOUNCED AN 87 DROP IN FISCAL 1992 EARNINGS AND A DIVIDEND CUT THE COMPANY PLANS TO REDUCE WORLDWIDE EMPLOYMENT BY 35000 IN THE NEXT TWO TO THREE YEARS FROM ITS CURRENT FORCE OF 265000 STEVE WILHITE GENERAL SALES MANAGER OF VOLKSWAGEN OF AMERICA INC WAS QUOTED IN AN ARTICLE WEDNESDAY AS SAYING THE COMPANY HAD LOST DIRECTION AND IDENTITY IN THE US MARKET THE ARTICLE SHOULD HAVE INDICATED THAT MR WILHITE MADE THIS STATEMENT AT A NEWPRODUCT PREVIEW LAST SUMMER INSTEAD IT INCORRECTLY IMPLIED THAT THE REMARK WAS MADE LAST WEEK 9303310122 930331 WHO'S NEWS AMERICAN GENERAL CORP AMERICAN GENERAL CORP HOUSTON HOWARD A YORK 48YEAROLD FORMER EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF ITT HARTFORD INSURANCE GROUP WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF THIS INSURANCE COMPANY MR YORK SUCCEEDS HENRY S ROMAINE 59 WHO RETIRED EARLIER THIS YEAR 9303310121 930331 BETHLEHEM STEEL TO RAISE PRICES BETHLEHEM PA BETHLEHEM STEEL CORP SAID IT WILL RAISE THE BASE PRICE OF ITS HOTROLLED COLDROLLED AND COATED SHEET STEEL BY 20 A TON EFFECTIVE JULY 4 BETHLEHEM'S INCREASE WHICH AVERAGES ABOUT 5 FOLLOWS SIMILAR MOVES THREE WEEKS AGO BY OTHER MAJOR STEELMAKERS 9303310120 930331 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB SECRETARY OF STATE WARREN CHRISTOPHER GATHERED WITH MEMBERS OF CONGRESS AT THE CAPITOL LAST FRIDAY AND GOT A SENSE OF WHY THE US NEEDS TO FUNDAMENTALLY RETHINK THE WAY IT AIDS BORIS YELTSIN'S RUSSIA MR CHRISTOPHER WAS THERE TO PREVIEW PRESIDENT CLINTON'S FORTHCOMING SUMMIT MEETING WITH THE BELEAGUERED RUSSIAN PRESIDENT AND TO MAKE A PITCH FOR MORE HELP TO SALVAGE REFORM IN MOSCOW BUT SEVERAL SENATORS COMPLAINED THAT MORE THAN 1 BILLION OF THE AID CONGRESS HAS APPROVED FOR RUSSIA IN THE PAST TWO YEARS HASN'T EVEN BEEN SPENT YET BECAUSE EITHER THE US OR RUSSIA HASN'T YET FOUND THE RIGHT WAY TO USE IT AND THEY SAID BILLIONS MORE IN FUNDS FROM INTERNATIONAL LENDING INSTITUTIONS ALSO HAVEN'T BEEN DISPERSED SHOULDN'T THAT AID BE USED FIRST SUCH LAWMAKERS AREN'T ARGUING AGAINST FURTHER HELP FOR MR YELTSIN NO RATIONAL POLITICIAN WOULD ADVOCATE STANDING IDLY BY AS RUSSIA'S DEMOCRATIC EXPERIMENT TWISTS IN THE WIND THAT WOULD BE A SURE WAY TO GET ON THE WRONG SIDE OF A HISTORIC WHOLOSTRUSSIA DEBATE RUSSIA DOES NEED MORE AID BUT NOT MORE OF THE SAME KIND OF AID THE HELP THE US HAS APPROVED HAS TENDED TO GET TRAPPED IN BUREAUCRATIC CHANNELS SLOWED DOWN BY RUSSIA'S INABILITY TO ORGANIZE ITS OWN GOVERNMENT OR DISPERSED SO WIDELY IT IS NEARLY INVISIBLE TO AVERAGE RUSSIANS WHOSE GRATITUDE THE AID IS DESIGNED TO WIN IN THE FIRST PLACE THE US IS TRYING TO FUND DOZENS OF DIFFERENT PROJECTS IN THE FORMER SOVIET UNION AND THERE SIMPLY ISN'T ENOUGH MONEY ON HAND TO SPREAD SO BROADLY SEN PATRICK LEAHY HEAD OF THE FOREIGN OPERATIONS SUBCOMMITTEE ESTIMATES THAT THE US IS EARMARKING JUST 350 OF AID A YEAR PER RUSSIAN CITIZEN BY CONTRAST THE US SENDS MORE THAN 700 OF AID A YEAR FOR EVERY ISRAELI CITIZEN PRESIDENT CLINTON'S CHALLENGE IS TO FIND NEW WAYS TO HELP THAT WILL MAKE AN IMMEDIATE IMPACT ON THE GROUND IN RUSSIA AND NOT SIMPLY MAKE EVERYONE IN WASHINGTON FEEL BETTER FOR HAVING DONE SOMETHING HE THEN NEEDS TO PERSUADE AMERICANS TO STOP THINKING OF RUSSIA AS JUST ANOTHER FOREIGNAID PROGRAM RUSSIA ISN'T AN AID CASE BUT A RECLAMATION PROJECT ONE DEMANDING YEARS OF PRACTICAL US HELP TO REBUILD AN ECONOMIC STRUCTURE CREAKING ALONG ON 40YEAROLD TECHNOLOGY THE FACT THAT MR YELTSIN JUST SURVIVED A NEARDEATH POLITICAL CHALLENGE GIVES THE WEST A SECOND CHANCE TO GENERATE NEW IDEAS TO HELP HIM AT A SMALL WHITE HOUSE DINNER WITH PRESIDENT CLINTON LAST WEEK SEN LEAHY OFFERED ONE SUCH NEW IDEA HE SUGGESTED THAT THE US OFFER RUSSIA THE SAME KIND OF HOUSINGLOAN GUARANTEES IT GAVE ISRAEL LAST YEAR WHICH THE RUSSIANS COULD USE TO BUILD HOMES FOR SOLDIERS STREAMING HOME FROM EASTERN EUROPE EVEN IF THE US HAS TO PICK UP THE TAB FOR SOME UNPAID LOANS THE PROGRAM COULD BE MADE APPEALING HERE BY USING THE FUNDS TO BUY USMADE PREFABRICATED HOUSES SIMILARLY THERE'S LITTLE POINT IN OFFERING RUSSIA MORE STANDARD SHORTTERM CREDITS TO BUY GRAIN WHICH IT SIMPLY CAN'T REPAY A MORE SENSIBLE APPROACH NOW MAY TO BEGIN BARTERING US GRAIN FOR RUSSIAN RAW MATERIALS IF RUSSIANS ARE COOL TO BARTER DEALS AS THEY HAVE BEEN ANOTHER WAY TO HAVE AN IMMEDIATE IMPACT WOULD BE TO DONATE FOOD THEN SELL SOME OF IT ON THE LOCAL MARKET TO GENERATE FUNDS FOR HUMANITARIAN AND DEVELOPMENT AID RUSSIA ALSO NEEDS SOME KIND OF WESTERNFINANCED SOCIAL SAFETY NET TO CUSHION THE BLOW WORKERS WILL FEEL AS OUTMODED STATE ENTERPRISES THAT HAVE PROVIDED BOTH JOBS AND SOCIAL BENEFITS ARE SHUT DOWN THERE'S ALSO A GROWING CALL FOR PROGRAMS TO SEND LARGE NUMBERS OF BANKERS LAWYERS SOLDIERS AND TECHNICIANS TO RUSSIA TO SHARE THEIR SKILLS AND TO BRING RUSSIANS HERE TO LEARN THE US HAS BENEFITED FOR DECADES BY WINNING THE LOYALTY OF YOUNG LATIN AMERICAN SOLDIERS WHO CAME HERE FOR TRAINING CLINTON AIDES INVOLVED IN MARATHON MEETINGS TO ASSEMBLE A NEW AID PACKAGE ARE IN FACT DOING SOME CREATIVE THINKING PARTICULARLY ABOUT WAYS TO HELP RUSSIA MAKE BADLY NEEDED IMPROVEMENTS IN ITS POTENTIALLY LUCRATIVE OIL INDUSTRY MORE VISIBLE AID HAS BECOME A CATCH PHRASE FOR ADMINISTRATION PLANNERS AND THE US AND ITS ALLIES MAY BE ON THE VERGE OF A BREAKTHROUGH BY WORKING OUT A PLAN TO REFINANCE RUSSIA'S FOREIGN DEBTS AND THEREBY EASE ITS CASH CRUNCH STILL MR CLINTON WILL HAVE TO PAY A POLITICAL PRICE FOR ANY AID PROGRAM AID FOR RUSSIANS OR ANYBODY ELSE IS UNPOPULAR AND AT A WHITE HOUSE DISCUSSION LAST WEEK HOUSE REPUBLICAN WHIP NEWT GINGRICH WARNED MR CLINTON THAT REPUBLICAN LEADERS WILL HAVE A HARD TIME GENERATING VOTES FOR AID UNLESS DEMOCRATS STOP IMPOSING LEGISLATIVE RULES THAT ARE ANGERING REPUBLICANS BY LIMITING THEIR ABILITY TO MODIFY OTHER LEGISLATION THERE'S ALWAYS A DANGER THE US COULD DO TOO MUCH TO HELP MR YELTSIN MAKING HIM APPEAR A WESTERN STOOGE BUT IF MR CLINTON IS GOING TO TRY TO HELP HE SHOULD AT LEAST GET AN AID PROGRAM THAT DOES SOME IMMEDIATE GOOD 9303310118 930331 TUESDAY'S MARKETS STOCKS REBOUND AFTER EARLY DIP DOLLAR DECLINES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES REBOUNDED FROM STEEP LOSSES IN THE LATE AFTERNOON TO END WITH MODEST GAINS BOND PRICES WERE MIXED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 217 POINTS TO 345727 STANDARD & POOR'S 500STOCK INDEX ROSE 120 TO 45197 AND THE NASDAQ COMPOSITE INDEX JUMPED 549 TO 68625 THE DOW JONES INDUSTRIALS SLUMPED AS MUCH AS 20 POINTS IN THE AFTERNOON THEN SURGED JUST BEFORE THE CLOSE ON A RALLY IN DRUG STOCKS THE EARLIER DECLINES WERE FUELED BY A WEAKERTHANEXPECTED READING ON CONSUMER CONFIDENCE IN MARCH THE CONFERENCE BOARD REPORTED THAT ITS CONSUMER CONFIDENCE INDEX SANK TO 626 FROM 685 IN FEBRUARY BELOW ANALYSTS' FORECASTS OF 67 THE JOHNSON REDBOOK SERVICE A PRIVATE SURVEY SAID RETAIL SALES IN MARCH FELL 08 FROM FEBRUARY ANALYSTS SAID THE STOCK MARKET HAS LOST SOME MOMENTUM HEADING INTO THE END OF THE QUARTER TODAY AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF NOTED THAT TRADING VOLUME HAS SLACKENED AS INVESTORS RECKONED WITH THE MARKET'S RELATIVELY HIGH VALUATION THE MARKET GOT AHEAD OF ITSELF MR MOORE SAID WHILE WE DON'T SEE ANYTHING OF REAL NEGATIVE SIGNIFICANCE FOR THE SHORT OR INTERMEDIATE TERM THE MARKET CLEARLY IS IN A CONSOLIDATION PHASE WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 030 TO 10084 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2303 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1025 ISSUES ROSE AND 855 FELL BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL LESS THAN 1/4 POINT OR LESS THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 691 BUT SHORTERTERM BONDS ROSE MODESTLY THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16173 MARKS AND 11656 YEN COMPARED WITH 16263 MARKS AND 11685 YEN MONDAY 9303310117 930331 LAW LEGAL BEAT DISABILITIES ACT IS BEING INVOKED IN DIVERSE CASES BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL THE NEW FEDERAL DISABILITIES ACT ISN'T JUST ABOUT DISABILITIES ANY MORE PLAINTIFFS' LAWYERS ARE SEEING TO THAT AS THEY TAKE ADVANTAGE OF THE VAGUE WORDING OF THE AMERICANS WITH DISABILITIES ACT TO APPLY IT IN A WIDE RANGE OF SURPRISING CONTEXTS CONGRESS PASSED THE ADA IN 1990 TO BAR DISCRIMINATION AGAINST DISABLED PEOPLE IN PUBLIC ACCOMMODATIONS AND IN THE WORKPLACE BUT SINCE THE ACT TOOK EFFECT LAST YEAR DOZENS OF CASES HAVE BEEN FILED OVER ISSUES THAT MANY LAWMAKERS NEVER IMAGINED WHEN THEY VOTED FOR IT SUCH LAWSUITS INCLUDE A LAWYER'S ATTEMPT TO BAN SMOKING AT MCDONALD'S CORP RESTAURANTS EFFORTS BY WORKERS INJURED ON THE JOB TO WIN DAMAGES FOR DISCRIMINATION AND A CLAIM THAT THE DISABILITY OF DEPRESSION MITIGATES CRIMINAL BEHAVIOR THERE ARE GOING TO BE SOME SUCCESSFUL SCREWY CLAIMS OUT THERE THAT CONGRESS NEVER INTENDED SAYS DEWEY POTEET A DISCRIMINATIONLAW SPECIALIST AT THE LAW FIRM AKIN GUMP STRAUSS HAUER & FELD IN SAN ANTONIO I DON'T THINK CONGRESS HAD A REAL HANDLE ON THE EXTENT TO WHICH LAWS ARE STRETCHED OUT OF PROPORTION TO BE SURE MOST ADA CLAIMS FILED SO FAR ARE ORDINARY KINDS OF DISABILITY CASES SUCH AS DISPUTES OVER AN EMPLOYER'S DECISION TO FIRE A WORKER WHO IS BLIND OR MENTALLY ILL AND SINCE OCTOBER THE NUMBER OF CLAIMS AGAINST EMPLOYERS HAS AVERAGED ABOUT 1000 A MONTH BELOW WHAT SOME CRITICS OF THE LAW HAD EXPECTED BUT THE POSSIBILITY STILL EXISTS THAT JUDGES WILL INTERPRET THE LAW BROADLY AND OPEN THE DOOR TO A WIDER RANGE OF SUITS GIVEN CONGRESS'S FAILURE TO PROVIDE CLEAR GUIDANCE AS TO THE LAW'S LIMITATIONS INDEED THE LANGUAGE OF THE ADA MAY MAKE IT PARTICULARLY PRONE TO JUDICIAL TUGS AND PULLS FOR EXAMPLE THE LAW REQUIRES EMPLOYERS TO MAKE REASONABLE ACCOMMODATIONS FOR A WORKER'S DISABILITY BUT ONLY IF THOSE ACCOMMODATIONS AREN'T AN UNDUE HARDSHIP ON THE EMPLOYER THE STATUTORY LANGUAGE IS JUST INCREDIBLY BROAD AND VERY AMBIGUOUS SAYS ROBERT CHRISTENSON A LABOR LAWYER WITH THE FIRM FISHER & PHILLIPS IN ATLANTA IT'S DIFFICULT TO TELL EXACTLY WHAT THEY MEAN CONNECTICUT LAWYER ROBERT FARR CONTENDS THE ADA IS BROAD ENOUGH TO PROHIBIT SMOKING AT RESTAURANTS AND HE HAS FILED LAWSUITS SEEKING A SMOKING BAN AT A UNIT OF WENDY'S INTERNATIONAL INC MCDONALDS AND BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC BY ALLOWING SMOKING MR FARR SAYS THE FASTFOOD CHAINS DISCRIMINATE AGAINST PEOPLE WITH RESPIRATORY AILMENTS BECAUSE SMOKING AGGRAVATES THEIR BREATHING PROBLEMS FORCING THEM TO EAT ELSEWHERE MR FARR MAKES NO SECRET THAT ANTISMOKING ZEAL RATHER THAN CONCERN FOR THE DISABLED TRIGGERED HIS INITIAL INTEREST IN THE ADA AS A CONNECTICUT STATE REPRESENTATIVE HE TRIED UNSUCCESSFULLY TO WIN LEGISLATION BANNING RESTAURANT SMOKING IT'S VERY HARD TO GET LEGISLATIVE BODIES TO ACT HE COMPLAINS THEN ALONG CAME THE ADA MR FARR INVESTIGATED THE NEW LAW AND DISCOVERED IT MIGHT BE A MEANS TO AN END OF ELIMINATING SMOKING HE SAYS THE AMERICAN LUNG ASSOCIATION PUT HIM IN TOUCH WITH THREE MOTHERS OF CHILDREN WITH ASTHMA HE SAYS AND HE FILED THE CLAIMS ON THEIR BEHALF MR FARR ALSO REPRESENTS A WOMAN WITH LUPUS LINDA RAVENELL WHO OBJECTS THAT SHE IS FORCED TO TAKE HER KIDS THROUGH THE MCDONALD'S TAKEOUT WINDOW AND FEED THEM IN THE CAR BECAUSE OF SMOKE IN THE BUILDING I BELIEVE MCDONALD'S IS DENYING ME ACCESS TO THE RESTAURANT MS RAVENELL SAYS IN HER ADA CLAIM THE ADA HAS SPAWNED OTHER UNEXPECTED PROGENY MANY ADA CLAIMS FOR EXAMPLE HAVE BEEN FILED BY EMPLOYEES WHO WERE INJURED WHILE WORKING IN MOST STATES WORKER'S COMPENSATION CLAIMS ARE SUPPOSED TO BE THE ONLY REMEDY FOR ONTHEJOB INJURIES BUT AN INJURED WORKER NOW MAY BE ABLE TO COLLECT DAMAGES UNDER THE ADA AS WELL IF THE BOSS WON'T TRANSFER THE EMPLOYEE TO A JOB THAT ACCOMMODATES THE INJURY INJURED WORKERS ARE GOING TO BE THE SINGLE BIGGEST BENEFICIARIES OF THE ADA AND I DON'T THINK CONGRESS THOUGHT ABOUT THAT SAYS CHRISTOPHER BELL A DISABILITIESLAW SPECIALIST AT THE LAW FIRM JACKSON LEWIS SCHNITZLER & KRUPMAN IN WASHINGTON A FORMER LAWYER WITH THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION MR BELL HELPED DEVELOP THE AGENCY'S ADA REGULATIONS ANOTHER CASE PUSHES THE ENVELOPE EVEN FURTHER OLAN RAND JR A FORMER NORTHWESTERN UNIVERSITY PROFESSOR CONTENDS THE SCHOOL VIOLATED THE ADA WHEN IT FIRED HIM FOR COMMITTING A CRIME THE 61YEAROLD ART HISTORY TEACHER PLEADED GUILTY IN 1991 TO COLLECTING HIS MOTHER'S SOCIAL SECURITY CHECKS FOR FIVE YEARS AFTER SHE DIED BUT MR RAND ASSERTS THAT A DISABILITY SEVERE DEPRESSION AND PROCRASTINATION BEHAVIOR LED HIM TO DELAY NOTIFYING THE GOVERNMENT OF HIS MOTHER'S DEATH ACCORDING TO MARSHALL DICKLER A LAWYER FOR PROF RAND SOME OF THE ADA'S SUPPORTERS AREN'T CONCERNED ABOUT CASES THAT APPEAR TO STRETCH THE LAW BEYOND ITS ORIGINAL SCOPE THE COURTS CAN SORT OUT A LEGITIMATE CLAIM FROM ONE THAT DIVERTS THE INTENT OF THE LAW SAYS STEVE BARTLETT THE MAYOR OF DALLAS WHO AS A US CONGRESSMAN HELPED DRAFT THE ADA BUT COURTS SOMETIMES AID EFFORTS TO EXPAND VAGUELY WRITTEN LAWS THE FEDERAL CIVIL RIGHTS ACT OF 1964 MAKES NO MENTION OF SEXUAL HARASSMENT BUT LAWYERS HAVE SUCCESSFULLY ARGUED THAT THE ACT ENCOMPASSES IT LAWYERS SAY COMPANIES WILL HAVE TO DEFEND THEMSELVES AGAINST SEEMINGLY FRIVOLOUS ADA CASES BECAUSE THE ACT REQUIRES CLAIMS TO BE JUDGED INDIVIDUALLY IN EACH CASE THE DISABLED PLAINTIFF'S HARDSHIPS MUST BE BALANCED AGAINST THE DIFFICULTY A DEFENDANT FACES IN ACCOMMODATING THE DISABILITY THUS A PLAINTIFF MIGHT WIN EVEN A WEAK CASE FILED AGAINST A COMPANY THAT CAN INEXPENSIVELY MAKE THE ACCOMMODATIONS A COMPANY SUED IN SUCH A CASE CAN'T JUST SAY OH THAT'S RIDICULOUS' AND NOT LOOK AT IT SAYS MR BELL A RAPE SHIELD LAW WAS MISAPPLIED WHEN IT WAS USED TO BLOCK A DEFENDANT FROM FULLY TESTIFYING ON HIS OWN BEHALF A FEDERAL APPEALS COURT SAID THE RULING BY A THREEJUDGE PANEL IN CHICAGO PROVIDES AN EXCEPTION TO RAPE SHIELD LAWS WHICH PROHIBIT TESTIMONY ABOUT AN ALLEGED RAPE VICTIM'S SEXUAL HISTORY AND REPUTATION THE DECISION CAME IN AN INDIANA MAN'S APPEAL OF AN ATTEMPTEDRAPE CONVICTION THE MAN CONTENDS THAT WHILE HE WAS HAVING CONSENSUAL SEX WITH HIS ACCUSER HE SAID SOMETHING ABOUT HER SEXUAL HISTORY THAT MADE HER SO ANGRY THAT SHE CONCOCTED A RAPE CHARGE A TRIAL JUDGE CITING INDIANA'S SHIELD LAW DIDN'T ALLOW THE MAN TO TESTIFY ABOUT MAKING THE STATEMENT INSTEAD THE MAN WAS PERMITTED TO TESTIFY ONLY THAT HE HAD SAID SOMETHING THAT INFURIATED THE WOMAN THE SEVENTH US CIRCUIT COURT OF APPEALS HELD THAT THE MAN WAS DEPRIVED OF A FAIR TRIAL WITHOUT THE TESTIMONY REGARDING THE CONVERSATION'S CONTENTS THE MAN'S DEFENSE TO THE ATTEMPTED RAPE CHARGE WAS SUBSTANTIALLY WEAKENED THE COURT SAID VIVIAN O BERGER A VICE DEAN OF COLUMBIA UNIVERSITY LAW SCHOOL WHO HAS WRITTEN ABOUT RAPE SHIELD LAWS SAID THE RULING SEEMED APPROPRIATE YOU DO HAVE A RIGHT TO DEFEND YOURSELF SHE SAID JUST TO SAY HE GOT HER ANGRY THAT'S NOTHING SHE ADDED THAT JURORS WHO HEAR MORE DETAILED TESTIMONY FROM A DEFENDANT MUST BE TOLD TO DISREGARD ANY IMPLICATIONS ABOUT THE ACCUSER'S SEXUAL HISTORY IN OTHER DECISIONS ON RAPE SHIELD LAWS SOME COURTS HAVE RULED THAT EVIDENCE CAN BE PRESENTED THAT A WOMAN PREVIOUSLY MADE FALSE ALLEGATIONS OF RAPE SAID ROBERT G FORBES A HARTFORD CITY IND ATTORNEY FOR THE DEFENDANT PROSECUTORS COULDN'T BE REACHED TO COMMENT ON THE DECISION WALL STREET COP MARY JO WHITE INTERIM US ATTORNEY IN BROOKLYN NY HAS BEEN RECOMMENDED TO SUCCEED OTTO OBERMAIER AS US ATTORNEY IN MANHATTAN THE HIGHPROFILE PROSECUTOR'S OFFICE WHOSE TERRITORY INCLUDES WALL STREET SEN DANIEL PATRICK MOYNIHAN D NY MADE THE RECOMMENDATION WHICH PRESIDENT CLINTON IS EXPECTED TO APPROVE MS WHITE'S NOMINATION WOULD HAVE TO BE CONFIRMED BY THE SENATE CALIFORNIA DEFECTION SEVENTEEN LAWYERS FROM THE LOS ANGELES FIRM MCKENNA & FITTING INCLUDING ITS FORMER MANAGING PARTNER AND THE CHAIRMAN OF ITS LITIGATION SECTION ARE DEFECTING TO THE LOS ANGELES OFFICE OF ROGERS & WELLS THE EXPANSION WILL DOUBLE ROGERS & WELLS'S LOS ANGELES OFFICE WHILE GUTTING MCKENNA & FITTING OF ITS TOP PARTNERS IN LITIGATION REAL ESTATE AND BANKING OTHER RECENT DEPARTURES HAD ALREADY REDUCED MCKENNA & FITTING TO ABOUT 25 LAWYERS REMAINING PARTNERS AND ASSOCIATES ARE SAID TO BE SEEKING PLACEMENT ELSEWHERE IN ANTICIPATION OF THE FIRM'S COLLAPSE LAWYERS AT MCKENNA & FITTING WERE UNAVAILABLE TO COMMENT JUNDA WOO CONTRIBUTED TO THIS COLUMN 9303310115 930331 CHINA FUND ADJOURNS MEETING NEW YORK CHINA FUND INC ADJOURNED ITS ANNUAL STOCKHOLDERS MEETING UNTIL APRIL 27 AFTER FAILING FOR THE SECOND TIME TO ACHIEVE A QUORUM TO VOTE ON A CHANGE IN INVESTMENT POLICY THE CHANGE WOULD ALLOW THE CLOSEDEND INVESTMENT COMPANY TO MAKE LOANS OR ISSUE SENIOR SECURITIES BORROW MONEY OR PLEDGE ASSETS IN CONJUNCTION WITH ITS DIRECT EQUITY INVESTMENTS THE ISSUE REQUIRES A MAJORITY VOTE AT A MEETING AT WHICH TWOTHIRDS OF THE TOTAL SHARES ARE REPRESENTED CHINA FUND INVESTS IN EQUITY SECURITIES OF COMPANIES DOING A SUBSTANTIAL AMOUNT OF BUSINESS IN CHINA 9303310114 930331 BANK REGULATORS EXPAND POLICY TO SPUR BUSINESS LENDING BY INCLUDING FARMERS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL BANK REGULATORS EXPANDED THEIR PROGRAM TO ENCOURAGE SMALL BUSINESS LENDING BY INCLUDING FARM LOANS WHILE AT THE SAME TIME SLASHING COSTLY AND TIMECONSUMING PAPERWORK REQUIREMENTS ON SUCH LOANS BY HEALTHY BANKS THE POLICY WHICH FLESHES OUT A CLINTON ADMINISTRATION INITIATIVE TO SPUR LENDING TO SMALL BUSINESSES GIVES THE NATION'S COMMERCIAL BANKS THE OPPORTUNITY TO MAKE A TOTAL OF 382 BILLION IN SOCALLED CHARACTER LOANS THESE LOANS ARE BASED MORE ON THE BORROWER'S PROVEN RELIABILITY OVER A NUMBER OF YEARS THAN ON RIGID COMPLIANCE WITH RULES THAT REQUIRE LOANS BE SUPPORTED BY A THICK FILE OF FINANCIAL STATEMENTS APPRAISALS AND TAX RETURNS BANKS HAVE COMPLAINED THAT STRICT DOCUMENTATION REQUIREMENTS HAVE MADE IT UNPROFITABLE TO MAKE LOANS TO SMALL BUSINESSES AND FARMERS UNDER THE POLICY HEALTHY BANKS MAY MAKE SMALL BUSINESS AND FARM LOANS EQUAL TO 20 OF THEIR TOTAL CAPITALEQUITY THAT SERVES AS A CUSHION AGAINST FAILURE THAT WILL BE EVALUATED SOLELY ON PERFORMANCE AND WILL BE EXEMPT FROM EXAMINER CRITICISM OF DOCUMENTATION THIS MEANS THAT LOANS IN THIS POOL WON'T BE CRITICIZED BY EXAMINERS IF THE BANK DOESN'T HAVE THE BORROWER'S MOST RECENT CASHFLOW STATEMENT OR AN UPDATED PROPERTY APPRAISAL IN ITS FILES THE BANK'S RECORDS HOWEVER MUST CONTAIN AN EVALUATION OF ITS ABILITY TO COLLECT THE LOAN AND WHETHER ITS RESERVES AGAINST THE LOAN ARE ADEQUATE NO SINGLE LOAN IN THE REDUCED DOCUMENTATION BASKET MAY EXCEED 900000 OR 3 OF AN INSTITUTION'S CAPITAL IN ADDITION THE BANK MAY NOT INCLUDE LOANS MADE TO COMPANY INSIDERS EXECUTIVE OFFICERS DIRECTORS OR MAJOR SHAREHOLDERS BY REDUCING THE RED TAPE REGULATORS EXPECT BANKS TO INCREASE THEIR LENDING TO SMALL BUSINESSES AND FARMS A MOVE THAT IN TURN WOULD SUPPORT THE ECONOMIC RECOVERY STEPHEN STEINBRINK THE ACTING COMPTROLLER OF THE CURRENCY SAID THE CHANGE SHOULDN'T HAVE ANY IMPACT ON SAFETY AND SOUNDNESS THIS IS PRETTY PRUDENT THE TIMING OF THE POLICY STATEMENT ISSUED BY THE COMPTROLLER THE FEDERAL DEPOSIT INSURANCE CORP THE FEDERAL RESERVE BOARD AND THE OFFICE OF THRIFT SUPERVISION COMES AT A TIME WHEN BANKS ARE PRIMED TO LEND COMMERCIAL BANK AND THRIFT PROFITS WERE AT RECORD HIGHS LAST YEAR AND MOST INSTITUTIONS HAVE STRENGTHENED THEIR CAPITAL AND LOANLOSS RESERVES AFTER SEVERAL YEARS OF STRUGGLING WITH TROUBLED LOANS IN FACT FEDERAL BANK EXAMINERS CONTEND THAT SOME BANKS HAVE ROOM TO REDUCE THE RESERVES THEY ARE HOLDING AGAINST LOANS A CHANGE THAT COULD BOOST BANK PROFITS AND FREE MORE FUNDS FOR LENDING I HAVE SEEN REPORTS WHERE EXAMINERS HAVE INDICATED THAT RESERVES WERE AT ADEQUATE LEVELS AND THAT PROVISIONING WHICH ADDS TO RESERVES COULD COME DOWN MR STEINBRINK SAID IN AN INTERVIEW THE NEW POLICY WHICH TAKES EFFECT IMMEDIATELY SHOULD BENEFIT MOST BANKS ABOUT 80 OF THE NATION'S 12200 COMMERCIAL BANKS ARE HEALTHY ENOUGH TO MAKE REDUCEDPAPERWORK LOANS MOREOVER THE STATEMENT SAID BANK EXAMINERS WOULD BE LESS RIGID ABOUT DEMANDING BACKUP DOCUMENTS FOR LOANS THAT DON'T QUALIFY FOR THE NEW PROGRAM EVEN IF SOME DOCUMENTS ARE MISSING THE LOAN WILL NOT BE CRITICIZED IF THE EXAMINER CONCURS THAT SUFFICIENT INFORMATION EXISTS TO SERVE AS A BASIS FOR AN INFORMED CREDIT DECISION THE STATEMENT SAID EARLIER THIS MONTH PRESIDENT CLINTON ANNOUNCED A FIVEPART PROGRAM TO INCREASE SMALL BUSINESS LENDING YESTERDAY'S ACTION WAS THE FIRST STEP IN PUTTING THAT PROGRAM INTO PLACE OTHER PARTS SUCH AS RELAXED APPRAISAL REQUIREMENTS WILL BE ISSUED WITHIN THE NEXT FEW MONTHS 9303310113 930331 WHO'S NEWS AIRGAS PRESIDENT TO RETIRE WILMINGTON DEL AIRGAS INC SAID MERRIL STOTT WILL RETIRE AS PRESIDENT AND CONTINUE ON A PARTTIME BASIS AS DIRECTOR OF TRAINING AND MANAGEMENT DEVELOPMENT HIS DUTIES WILL BE HANDLED BY THREE DIVISION PRESIDENTS ALFRED B CRICHTON DIVISION PRESIDENT/WEST KENNETH A KEELEY DIVISION PRESIDENT/CENTRAL AND HERMANN KNIELING DIVISION PRESIDENT/EAST AIRGAS IS A DISTRIBUTOR OF INDUSTRIAL MEDICAL AND SPECIALTY GASES AND RELATED EQUIPMENT 9303310112 930331 INTERNATIONAL RUSSIA AND WESTERN LENDERS ARE NEAR AN AGREEMENT ON RESCHEDULING DEBT BY PETER GUMBEL AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL RUSSIA AND ITS WESTERN CREDITORS ARE CLOSE TO AGREEMENT ON RESCHEDULING RUSSIA'S FOREIGN DEBT AND COULD REACH A COMPROMISE BEFORE THIS WEEKEND'S MEETING BETWEEN PRESIDENT CLINTON AND RUSSIAN PRESIDENT BORIS YELTSIN SEVERAL PREVIOUS ATTEMPTS TO ALLEVIATE RUSSIA'S 85 BILLION DEBT SOME 70 BILLION OF WHICH WAS INHERITED FROM THE SOVIET UNION HAVE FOUNDERED BECAUSE OF DISPUTES OVER THE AMOUNT OF DEBT RELIEF AND A CRIPPLING FEUD BETWEEN RUSSIA AND UKRAINE OVER HOW TO DIVIDE UP THE DEBT BETWEEN THEM THE RUSSIAUKRAINE DISPUTE NOW HAS BEEN RESOLVED AT LEAST FOR THE MOMENT WITH THE INTERVENTION OF WESTERN CREDITORS AND MR YELTSIN'S DRAMATIC BATTLE IN MOSCOW WITH HIS HARDLINE PARLIAMENT LAST WEEK HAS BOOSTED POLITICAL SUPPORT FOR HIM IN WASHINGTON AND OTHER CAPITALS AS A RESULT OFFICIALS IN WASHINGTON AND EUROPE WHO ARE FAMILIAR WITH THE DEBT TALKS SAY THERE'S A GOOD CHANCE OF REACHING AN AGREEMENT ON RESCHEDULING RUSSIA'S DEBT PAYMENTS TO FOREIGN GOVERNMENTS THIS WEEK FURTHER TALKS WITH BANKERS AND OTHER PRIVATE CREDITORS WILL BE REQUIRED ON RESCHEDULING PRIVATE DEBT WHICH REPRESENTS ABOUT HALF THE 85 BILLION THE TIME IS RIPE THE ISSUE HAS NOW BECOME MORE POLITICAL THAN TECHNICAL SAYS ONE OFFICIAL CLOSE TO THE RUSSIAN DELEGATION ADDING WE WON'T GO ON BICKERING AS WE HAVE BEEN RUSSIA HAS SAID IT CAN AFFORD TO PAY ONLY 25 BILLION TO 35 BILLION THIS YEAR TO GOVERNMENT AND COMMERCIAL CREDITORS COMBINED SUBSTANTIALLY LESS THAN A DECEMBER PROPOSAL MADE BY THE GROUP OF SEVEN INDUSTRIAL NATIONS WHICH MOSCOW DIDN'T ACCEPT OVER THE PAST FEW DAYS THE RUSSIANS HAVE BEEN LOBBYING IN WESTERN CAPITALS FOR A SWEETER DEAL WESTERN OFFICIALS SAY THE PENDING AGREEMENT IF PRIVATE CREDITORS GO ALONG WOULD PERMIT RUSSIA TO MAKE ONLY SMALL DEBT PAYMENTS FOR THE NEXT SEVERAL MONTHS BUT OBLIGATE IT TO PAY ABOUT 35 BILLION BY THE END OF THE YEAR YOU CAN HAVE A STANDSTILL ON THE DEBT FOR A VERY FEW MONTHS WHILE YOU RENEGOTIATE SOMETHING THAT THEY CAN MEET TREASURY SECRETARY LLOYD BENTSEN SAID OVER THE WEEKEND RUSSIA STOPPED MAKING PAYMENTS ON MOST OF ITS FOREIGN DEBTS WITHOUT THE CONSENT OF THE CREDITORS AS A RESULT THE US HAS CUT OFF LOANS INCLUDING SORELY NEEDED CREDITS TO BUY GRAIN A FORMAL AGREEMENT WOULD ALLOW THE US TO RESUME LENDING AND WOULD EASE TENSIONS AMONG CREDITORS THAT HAVE INTERFERED WITH NEGOTIATIONS ON A BROADER INTERNATIONAL AID PLAN FOR RUSSIA ANY AGREEMENT WOULD GIVE A BOOST TO MR CLINTON'S FIRST SUMMIT WITH MR YELTSIN THE RUSSIAN PRESIDENT LIKE HIS SOVIET PREDECESSOR MIKHAIL GORBACHEV HAS COME UNDER ATTACK FROM HARDLINERS AT HOME WHO COMPLAIN THAT HE HAS MADE TOO MANY CONCESSIONS TO THE WEST WITHOUT RECEIVING ANYTHING TANGIBLE IN RETURN SEPARATELY THE WORLD BANK YESTERDAY APPROVED A LEGAL CHANGE TO ITS LOAN TERMS THAT REMOVES AN IMPEDIMENT TO A PLANNED 2 BILLION LOAN FROM THE US EXPORTIMPORT BANK FOR RUSSIA TO BUY OIL EQUIPMENT ON CAPITOL HILL SECRETARY OF STATE WARREN CHRISTOPHER SAID AID TO RUSSIA SHOULD NOT BE PORTRAYED HERE OR THERE AS CHARITY BUT AS AN INVESTMENT IN US SECURITY HE SAID THE US IS CONSIDERING HELPING RUSSIA BUILD HOUSING FOR DEMOBILIZED RUSSIAN SOLDIERS MEANWHILE AN INFLUENTIAL SENATE DEMOCRAT PATRICK LEAHY OF VERMONT GENERALLY ENDORSED THE CLINTON ADMINISTRATION'S PLANS TO SEEK ADDITIONAL AID FOR RUSSIA IN A DISCUSSION WITH REPORTERS SEN LEAHY WHO HEADS THE APPROPRIATIONS SUBCOMMITTEE ON FOREIGN AID SUGGESTED THAT ISRAEL OR EGYPT OFFER TO TAKE A REDUCTION IN AID TO FREE UP FUNDS FOR RUSSIA HE SUGGESTED THAT IF THEY AREN'T WILLING TO DO SO US LAWMAKERS MAY LOOK BACK IN FUTURE YEARS AND WONDER WHY THEY WEREN'T WILLING TO HELP THE US OUT OF ITS AID PROBLEM ISRAEL GETS 3 BILLION IN US AID THIS YEAR EGYPT 21 BILLION 9303310111 930331 LETTERS TO THE EDITOR IS AMERICA DECAYING AND WHY WILLIAM J BENNETT PLAYED THE ROLE OF CHICKEN LITTLE IN HIS MARCH 15 EDITORIALPAGE ESSAY QUANTIFYING AMERICA'S DECLINE HE PRESENTED AN EIGHTPOINT LIST OF WHAT HE CALLED HIS INDEX OF LEADING CULTURAL INDICATORS TO SHOW THAT THE SKY HAS FALLEN IN ON AMERICAN MORALS HE CITES FIGURES SHOWING THAT BOTH ILLEGITIMATE BIRTHS AND GOVERNMENT SPENDING HAVE SURGED FIVEFOLD SINCE 1960 HE IGNORES THE FACT THAT BOTH HAVE GROWN BY ALMOST IDENTICAL PROPORTIONS IN EUROPE NOR ARE THESE WORLDWIDE SOCIAL TRENDS EVIDENCE OF GENEROUS WELFARE SYSTEMS THAT ENCOURAGE IRRESPONSIBILITY A SINGLE MOTHER WITH TWO CHILDREN ON AID TO FAMILIES WITH DEPENDENT CHILDREN HAS SEEN HER AVERAGE CHECK SHRINK IN REAL DOLLARS FROM HALF THE POVERTY LEVEL IN 1966 TO A THIRD OF IT TODAY SINCE THE GREAT SOCIETY PROGRAMS THAT MR BENNETT CASTIGATES BEGAN FIVE OF EVERY SIX DOLLARS IN NEW SPECIAL SPENDING HAVE BEEN IN SUCH ENTITLEMENTS AS SOCIAL SECURITY AND MEDICARE NOT IN WELFARE MR BENNETT IS WORRIED BECAUSE SCHOLASTIC APTITUDE TEST SCORES HAVE FALLEN NEARLY 80 POINTS SINCE 1960 HE FAILS TO TELL YOU THAT THE PROPORTION OF MINORITY STUDENTS TAKING THE SATS HAS MORE THAN DOUBLED IN THE PAST 20 YEARS TO A QUARTER OF TESTTAKERS THE TRUTH IS THAT SAT MATH SCORES FOR NONMINORITY STUDENTS HAVE INCREASED SEVERAL POINTS SINCE 1980 A RISE IN AVERAGE DAILY TV VIEWING FROM FIVE TO SEVEN HOURS SINCE 1960 LIES AT THE ROOT OF MANY OF OUR SOCIAL PROBLEMS MR BENNETT INFERS IF MORE TV VIEWING CAUSES CRIME VIOLENCE AND POORER SCHOOL GRADES HOW DO YOU RECONCILE THAT WITH THE FACT THAT JAPANESE SCHOOLCHILDREN WATCH MORE TV THAN AMERICAN CHILDREN CRIME STATISTICS CITED SHOW THE RATE OF VIOLENT CRIME DOUBLING SINCE 1970 AND CRIMINALS FAR LESS LIKELY TO SPEND TIME IN PRISON THAN IN THE 1950S YET THE JUSTICE DEPARTMENT'S ANNUAL POPULATION SURVEY HAS SHOWN A STEADY DECLINE IN BOTH PERSONAL AND PROPERTY CRIME VICTIMS SINCE THE SURVEYS BEGAN IN 1973 ANOTHER JUSTICE STUDY FOUND THAT A CONVICTED ROBBER WAS 50 MORE LIKELY TO SPEND TIME IN PRISON AND A RAPIST 90 MORE LIKELY IN 1986 THAN IN 1974 THE SOCIAL AGENDA THAT MR BENNETT PUSHES OF BUILDING MORE PRISONS AND RESCINDING OF NOFAULT DIVORCE LAWS FOR PARENTS WITH CHILDREN IS NOT SUPPORTED BY HIS BOGUS INDEX OF LEADING CULTURAL INDICATORS MR BENNETT ONCE AGAIN CONTRIBUTES A SUCCINCT OVERVIEW OF OUR SOCIETY'S ILLS HOWEVER HE FAILS TO MENTION THE ROLE OF THE BUSINESS COMMUNITY IN OUR NATION'S PROBLEMS AMERICAN BUSINESS IN THE TIME SINCE WORLD WAR II HAS CONTRIBUTED SIGNIFICANTLY TO SOCIAL DESTRUCTION BY FOSTERING ATTITUDES THAT HAVE LOCKED OUT GENERATIONS OF BLACK MALES FROM THE ONE ACTIVITY THAT COULD HAVE BROUGHT A SENSE OF VALUE TO THEIR LIVES PRODUCTIVE AND MEANINGFUL WORK SIMILARLY IT HAS KEPT HALF OF OUR WOMEN FROM MAKING A CONTRIBUTION EVEN WE WHITE MALES WHO WERE LUCKY ENOUGH TO FIND A PLACE IN THE PROFESSIONAL WORK FORCE HAVE SEEN REAL SPIRITUAL VALUES IGNORED BY GRINDING BUREAUCRATIC MACHINERY GOOD OLD BOY NETWORKS THAT PROMOTE ON THE BASIS OF FRIENDSHIPS INSTEAD OF MERIT AND AN OVERWHELMING EMPHASIS ON GETTING RICH AT THE EXPENSE OF SOCIETY AT LARGE ONLY NOW AS GLOBAL COMPETITION HAS FORCED US TO REEVALUATE OUR APPROACHES AND AS YOUNGER LEADERSHIP BEGINS TO MAKE ITSELF HEARD DO WE SEE THE BEGINNINGS OF A MORE ENLIGHTENED AND CONSTRUCTIVE CORPORATE ATMOSPHERE WHILE HARD TO FIND THERE ARE PLACES WHERE QUALITY TIME WITH YOUR FAMILY IS NOT A EUPHEMISM FOR CATCHING JOHNNY'S GAME ON YOUR WAY TO THE AIRPORT OUR BUSINESS COMMUNITY MUST BEGIN TO VALUE EDUCATION IF IT WANTS EDUCATION TO BE VALUED BY YOUTH IT MUST TREAT EMPLOYEES AS SACRED ASSETS TO BE NURTURED AND GROWN NOT BALANCE SHEET EXPENSES IF IT WANTS LIFE TO BE VALUED IN SOCIETY AT LARGE MR BENNETT'S ESSAY DOES NOT MENTION THE LEADERSHIP VOID LEADERS FEEL IF THEY MERELY SPEAK OF CULTURAL DEMISE THEY SOMEHOW EXONERATE THEMSELVES FROM THE FRAY SPEECH MUST BE FOLLOWED BY CONSISTENT ACTION I RESPECT MR BENNETT HE HAS THE COURAGE TO SPEAK HIS MIND IN A TIME OF POLITICALLY CORRECT TYRANNY THAT'S WHY I BELIEVE HE WILL UNDERSTAND WHEN I POINT OUT THAT SAT SCORES DECLINED DURING HIS TENURE AS SECRETARY OF EDUCATION THE US POPULATION TOO OFTEN SEES POLITICIANS DEMOCRATIC AND REPUBLICAN BREAK LAWS WITHOUT CONSEQUENCES THERE IS NO ACCOUNTABILITY WHETHER IT'S SMOTHERING HEALTH CARE DISCUSSIONS WITH NEPOTISM COVERT MILITARY ACTIVITY BREACH OF CONSTITUTIONAL RIGHTS BANKING INDISCRETIONS POLITICAL ACTION COMMITTEE INFLUENCE WIRETAPPING OR ILLEGAL ARM SALES THE CYNICAL AMERICAN PUBLIC SNEERS WHEN BUREAUCRATS SPEAK OF CULTURAL DEMISE THE REALITY IS THAT GOOD/BAD LEADERSHIP SHOULD BE AN INDEX CATEGORY A BAROMETER OF HYPOCRISY LEADERS MIRROR THE SYSTEM PUBLIC REACTION TO THE ABSENCE OF COURAGE AND HONESTY IS A COMPELLING FACTOR THIS OMISSION RELEGATES MR BENNETT'S POINTS TO A DEBATING EXERCISE IT REVEALS PARTISAN INTENTIONS MUCH OF WHAT GOES ON IN WASHINGTON AND ON WALL STREET AND MAIN STREET IS NO LONGER THE RESULT OF HARD WORK AND STRONG WORK ETHICS THIS FACT IS NOT LOST ON THE AMERICAN PEOPLE WHEN THE INDEX OF LEADING CULTURAL INDICATORS IGNORES LEADERSHIP IT IS PROOF THAT THE REAL ANSWER IS STILL ELUDING US MR BENNETT OFFERS SOME VALUABLE INSIGHTS INTO THE SELFDESTRUCTIVE TENDENCIES OF OUR SOCIETY HOWEVER THE REASONS OFFERED SEEM ONLY SYMPTOMATIC OF A LARGER PROBLEM THE LACK OF MEANINGFUL WORK AS INDUSTRIALIZED SOCIETY EMBRACED ADAM SMITH'S NOTION OF DIVISION OF LABOR THE NONECONOMIC ASPECTS OF WORK WERE NO LONGER NECESSARILY COMPATIBLE WITH PURELY ECONOMIC AIMS THE MOMENT THE PIN WAS NOT OF A PIECE IT WAS NOT OF A MAKER THERE IS VERY LITTLE WHOLE WORK LEFT IN OUR WORLD PEOPLE CAN MAKE PRECIOUS LITTLE CONNECTION BETWEEN THEIR NEED FOR SELFESTEEM AND SELFACTUALIZATION AND THE FRAGMENTED ABSTRACTED LABOR THEY PERFORM COUPLED WITH A MEDIA OBSESSED WITH BEAUTIFUL SMILING OSTENSIBLY FULFILLED ROLE MODELS IT'S NO WONDER THAT THE AVERAGE PERSON FEELS INADEQUATE AND SOMEHOW FAILED IN HIS MEAGER PURSUITS MOST HARMLESSLY PEOPLE VEGETATE BEFORE THE TELEVISION MOST DANGEROUSLY THEY TURN ON THEMSELVES OR SOCIETY FORTUNATELY CERTAIN AQUARIAN COMPANIES ACKNOWLEDGE THE NEED FOR PEOPLE TO REALIZE THEMSELVES THROUGH THEIR WORK COMPANIES SUCH AS SOUTHWEST AIRLINES STARBUCK'S BEN & JERRY'S AND MIRAGE RESORTS WORK TO ASSOCIATE THEIR EMPLOYEES WITH THE WHOLE OF THE ENTERPRISE AND RESPECT THEIR INDIVIDUAL CONTRIBUTIONS IT IS PROBABLY NOT A COINCIDENCE THAT THESE SAME FIRMS ACHIEVE BETTER THAN AVERAGE RESULTS IN THEIR RESPECTIVE INDUSTRIES AS THE NUMBERS OF SUCH COMPANIES GROW AND SUCCEED IT IS HOPED THEIRS WILL BE THE PARADIGMS OF WORK IN THE 21ST CENTURY MR BENNETT'S OTHERWISE RIVETING ANALYSIS OMITS AN UTTERLY ESSENTIAL COMPONENT IN THE DYNAMICS HE ARGUES HAVE INFLUENCED THIS DETERIORATION THE RAMPANT CORPORATE VENALITY OF THE PAST DECADE OR MORE WHICH HAS INDICATED A SEVERE LOSS OF MORAL SELFCONTROL AT THE TOP AS WELL AS DYSFUNCTIONING OF CELEBRATED BUSINESS SCHOOLS THAT PREPARE TOMORROW'S EXECUTIVES READERS OF ANY NEWSPAPER OR MAGAZINE INCLUDING THE WALL STREET JOURNAL CAN FIND ON A DAILY BASIS REPORTS OF MORE SECURITIES DEALERS BEING DISMISSED OR JAILED ANOTHER SAVINGS AND LOAN EXECUTIVE SENTENCED TO PRISON ANOTHER DEFENSE CONTRACTOR PLEADING NOLO CONTENDERE TO FRAUD AND OVERCHARGE ACCUSATIONS ANOTHER LAWYER JAILED FOR FLEECING CLIENTS ANOTHER DOCTOR CHARGED WITH KICKBACKS OR ENGAGING IN DECEPTIVE PRACTICES IF MR BENNETT BELIEVES TODAY'S YOUNG PEOPLE LACK SELFCONTROL COULD THEIR DISSOLUTE LIVES HAVE FOUND MODELS IN HIGH PLACES IN THE MARKETPLACE MR BENNETT'S ANALYSIS IS NO DOUBT CORRECT AND FINE AS FAR AS IT GOES SO WHAT NEXT HISTORY IS REPLETE WITH CASES OF CIVILIZATIONS THAT HAVE DECLINED OVER SHORT PERIODS ANYWHERE FROM 30 TO 100 YEARS AND USUALLY FOR MUCH THESE SAME REASONS FREEDOM REQUIRES NOT ONLY VIGILANCE BUT ALSO AND PARAMOUNT PERSONAL RESPONSIBILITY AND MORAL CHARACTER THE MIDDLE CLASS HAS ALWAYS BEEN THE BACKBONE OF THESE QUALITIES ITS EROSION IS THE TOCSIN OF DECLINE THE PHENOMENON OF DECAY SEEMS TO HAVE ITS ROOTS IN THE ACHILLES' HEEL OF DEMOCRACY THE PURCHASABILITY OF VOTES AND THE TENDENCY OF DEMAGOGUES LARGE AND SMALL TO BUY POWER THROUGH REDISTRIBUTION OF WEALTH IF THERE IS ANY PRIMARY CAUSE FOR OUR SITUATION IT MUST LIE IN THE CORRUPT FAILURE OF OUR POLITICAL LEADERSHIP SO WE NOW SEE OUR NATION DRIFTING INTO DEEP SOCIALISM WHILE MUCH OF THE WORLD TRIES TO ESCAPE FROM IT MR BENNETT DIAGNOSES BUT DOES NOT PRESCRIBE NOR DO I HAVE ANY REMEDIAL FORMULA IF YOU FIND SOMEONE WHO HAS I'D REJOICE TO SEE HIS PRESCRIPTION IN A JOURNAL ARTICLE 9303310110 930331 WHO'S NEWS MATTEL INC MATTEL INC LOS ANGELES FRANK FORETICH VICE PRESIDENTCREATIVE SERVICES WAS PROMOTED TO THE NEW POST OF SENIOR VICE PRESIDENTCREATIVE SERVICES MR FORETICH IS 47 YEARS OLD MILTON ZABLOW 43 VICE PRESIDENTSALES WAS PROMOTED TO SENIOR VICE PRESIDENTSALES FOR THE BOYS TOY PRESCHOOL ACTIVITY AND GAMES CATEGORIES ALSO A NEW POST MATTEL DESIGNS MAKES AND MARKETS CHILDREN'S TOYS 9303310109 930331 LETTERS TO THE EDITOR PROGRESS REGARDING RENE R FUENTES'S MARCH 26 LETTER TO THE EDITOR NO ONE EVER MENTIONS THE EXPANSION OF RETAILERS SUCH AS WALMART CIRCUIT CITY OR TOYS R US WHEN TALKING ABOUT HOW MANY JOBS WERE LOST WHEN SEARS ROEBUCK CLOSED ITS CATALOG OPERATIONS IF SOME PEOPLE HAD THEIR WAY WE WOULD ALL BE SENDING MESSAGES BY HORSEBACK BECAUSE SOME PONY EXPRESS RIDERS MIGHT BE PUT OUT OF WORK IF WE USED THE TELEGRAPH 9303310108 930331 INTELLICALL INC POSTS LOSS OF 22 MILLION FOR FOURTH QUARTER DALLAS INTELLICALL INC AS EXPECTED POSTED A SIGNIFICANTLY WIDER LOSS FOR THE FOURTH QUARTER ON A 43 REVENUE DECLINE THE TELECOMMUNICATIONS COMPANY WHICH IS STILL TRYING TO RECOVER FROM ALLEGATIONS OF WRONGDOING THAT LED TO THE DISMISSAL OF SOME TOP EXECUTIVES LAST YEAR RECORDED A LOSS FOR THE PERIOD OF 22 MILLION OR 327 A SHARE COMPARED WITH A LOSS OF 6 MILLION OR 90 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE FELL TO 288 MILLION FROM 507 MILLION IN THE LATEST QUARTER THE COMPANY TOOK PRETAX CHARGES OF 83 MILLION FOR THE SETTLEMENT OF A SHAREHOLDER LAWSUIT RELATING TO FORMER MANAGEMENT'S ALLEGED IMPROPER PRACTICES 4 MILLION FOR LOSSES RELATED TO ONE OF ITS BILLING AGENTS AND A 96 MILLION FOR A RESERVE FOR RECEIVABLES THE YEAREARLIER PERIOD INCLUDED AN 81 MILLION PRETAX CHARGE THE COMPANY SAID THE FOURTHQUARTER CHARGES PUT THE COMPANY IN DEFAULT OF ITS LOAN AGREEMENT BUT ADDED THAT IT HAD OBTAINED WAIVERS AND AMENDMENTS FROM LENDERS TO PROVIDE FOR THE CHARGES IN EXCHANGE LENDERS LOWERED THEIR LOAN COMMITMENTS TO THE COMPANY TO 289 MILLION FROM 329 MILLION AS OF YESTERDAY THE COMPANY HAD ABOUT 175 MILLION OF DEBT OUTSTANDING UNDER THE LOAN AGREEMENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY INTELLICALL'S STOCK DROPPED 125 CENTS A SHARE TO 6375 THE FOURTHQUARTER LOSS ENDED A DIFFICULT YEAR FOR THE COMPANY WHICH DISMISSED SEVERAL TOP EXECUTIVES IN EARLY 1992 FOR FAILING TO DISCLOSE THAT THE COMPANY WAS IN DEFAULT ON ABOUT 55 MILLION OF DEBT THE COMPANY EVENTUALLY HAD TO RESTATE 1991 RESULTS TO REFLECT THAT LONGTERM DEBT AS A CURRENT LIABILITY INTELLICALL ALSO WAS ACCUSED OF IMPROPERLY RECORDING INVENTORY AS REVENUE BUT IT SAID AN INTERNAL INVESTIGATION DIDN'T FIND ANY WRONGDOING ERIC ZIMITS AN ANALYST AT VOLPE WELTY & CO IN SAN FRANCSICO SAID THE FOURTHQUARTER RESULTS WERE EXPECTED THIS IS PART OF THE ONGOING PROCESS OF MOPPING UP AND DEVELOPING A STABLE BUSINESS PLATFORM MR ZIMITS SAID 9303310107 930331 MARKETING & MEDIA ACADEMY AWARDS RECEIVE BEST TV RATINGS SINCE '83 NEW YORK THE 65TH ANNUAL ACADEMY AWARDS TELECAST ON ABC MONDAY NIGHT GOT PANNED BY CRITICS BUT THE 3 1/2 HOUR GLITTER FEST POSTED ITS BEST TELEVISION RATINGS SINCE 1983 HOLLYWOOD'S ANNUAL GATHERING FOR SELFCONGRATULATION DREW 312 OF THE NATION'S 931 MILLION TV HOMES AND A 51 SHARE OF THE HOUSEHOLDS THAT WERE WATCHING TELEVISION MONDAY NIGHT ACCORDING TO AC NIELSEN CO FIGURES THAT WAS UP FROM LAST YEAR'S 298 RATING AND 50 SHARE ABC OWNED BY CAPITAL CITIES/ABC INC SAID ABOUT 76 MILLION PEOPLE IN THE US WATCHED ALL OR PART OF THE SHOW ALTHOUGH BY THE LAST HALF HOUR THE AUDIENCE HAD DWINDLED A BIT TO 266 OF HOMES OR FEWER THAN 25 MILLION HOUSEHOLDS STILL THE OSCARS RANKED AS THE THIRDHIGHESTRATED PROGRAM OF THE TELEVISION SEASON ONLY NBC'S COVERAGE OF SUPER BOWL XXVII AND ABC'S MICHAEL JACKSON TALKS TO OPRAH FARED BETTER THE BARBARA WALTERS SPECIAL WHICH PRECEDED THE OSCAR TELECAST HAD A 192 RATING AND A 31 HOUSEHOLD SHARE COMPARABLE WITH LAST YEAR'S PREOSCARS SPECIAL 9303310106 930331 TECHNOLOGY ELECTRONICS TRADE DEFICIT MORE THAN DOUBLED IN '92 SANTA CLARA CALIF THE US TRADE DEFICIT IN ELECTRONIC PRODUCTS AND SERVICES MORE THAN DOUBLED IN 1992 TO 97 BILLION FROM 38 BILLION A YEAR EARLIER ACCORDING TO THE AMERICAN ELECTRONICS ASSOCIATION THE TRADE GROUP SAID THAT AFTER FALLING TO 22 BILLION IN 1990 FROM A RECORD 127 BILLION IN 1987 THE DEFICIT HAS BEEN CLIMBING AGAIN AS GROWTH IN IMPORTS OUTPACE EXPORT GROWTH IN 1992 US EXPORTS ROSE 68 TO 803 BILLION WHILE IMPORTS ROSE 12 TO 900 BILLION IT SAID THE US DEFICIT WITH JAPAN ALSO ROSE TO A RECORD INCREASING 155 TO 223 BILLION FROM 193 BILLION IN 1991 EXPORTS TO JAPAN DROPPED ALMOST 5 TO 82 BILLION WHILE IMPORTS FROM JAPAN JUMPED 15 TO 305 BILLION WE JUST DON'T HAVE ACCESS TO THE MARKET THERE SAID AN ASSOCIATION SPOKESMAN THE TRADE BALANCE WITH THE EUROPEAN COMMUNITY SHOWED LITTLE CHANGE THE ASSOCIATION SAID 9303310105 930331 RULE OF LAW FREE SPEECH OUTSIDE ABORTION CLINICS BY MICHAEL W MCCONNELL EVEN SOMEONE WHO FAVORS REASONABLE RESTRICTIONS ON ABORTION AS I DO FEELS SICKENED BY THE ACTS OF VIOLENCE DIRECTED AGAINST ABORTION CLINICS SO TRAGICALLY EXEMPLIFIED BY THE MURDER OF DR DAVID GUNN IN PENSACOLA FLA I FEEL MUCH THE WAY PEACE ADVOCATES MUST HAVE FELT WHEN DEFENSE PLANTS WERE BOMBED OR CIVIL RIGHTS WORKERS MUST HAVE FELT WHEN VIOLENCE BESMIRCHED THEIR MOVEMENT IN THE 1960S THUS IT WOULD BE EASY TO SYMPATHIZE WITH THE MEMBERS OF CONGRESS WHO ARE ATTEMPTING TO RUSH THROUGH FEDERAL PROTECTIVE LEGISLATION THE FREEDOM OF ACCESS TO CLINIC ENTRANCES BILL THE BILL WOULD MAKE ILLEGAL ANY CONDUCT THAT INTENTIONALLY AND PHYSICALLY OBSTRUCTS THE INGRESS OR EGRESS OF ANOTHER TO A MEDICAL FACILITY THAT AFFECTS INTERSTATE COMMERCE WITH THE INTENT TO PREVENT OR DISCOURAGE ANY PERSON FROM OBTAINING REPRODUCTIVE HEALTH SERVICES THE BILL EXEMPTS LABOR PICKETS THE PROBLEM IS THAT THE BILL COULD BE USED TO INHIBIT LEGITIMATE PEACEFUL PROTESTS AGAINST ABORTION WHICH IT SHOULD NOT BE FORGOTTEN CONSTITUTE THE VAST MAJORITY OF ALL CLINIC PROTESTS IN FACT THE BILL APPEARS TO VIOLATE SEVERAL ESTABLISHED SUPREME COURT PRECEDENTS NAACP V CLAIBORNE HARDWARE 1982 THE FIRST CONSTITUTIONAL PROBLEM IS THE BILL'S VAGUE AND SWEEPING LANGUAGE WHICH WOULD EXTEND FAR BEYOND ABORTION PROTESTS THAT ARE VIOLENT OR EVEN ILLEGAL TO FORBID PEACEFUL LAWFUL PROTESTS PROTECTED BY THE FIRST AMENDMENT THE BILL APPLIES TO ANY PERSON WHO OBSTRUCTS ACCESS TO AN ABORTION CLINIC IN AN ATTEMPT TO DISCOURAGE ABORTION THIS COULD DESCRIBE A SIDEWALK COUNSELOR WHO STEPS IN FRONT OF A WOMAN TO HAND HER A LEAFLET OR A LINE OF PICKETS WALKING PEACEFULLY IN FRONT OF A CLINIC THE SPONSORS ADDED A SAVINGS CLAUSE SUPPOSEDLY EXEMPTING PEACEFUL DEMONSTRATIONS BUT IN LIGHT OF THE EXTREME PENALTIES UP TO THREE YEARS IN PRISON AND TREBLE DAMAGES INCLUDING FOR EMOTIONAL DISTRESS PRUDENT PICKETS MIGHT NOT BE WILLING TO BET ON WHETHER A JURY WOULD FIND THEIR PROTESTS SUFFICIENTLY PEACEFUL IN CLAIBORNE HARDWARE THE SUPREME COURT CONFRONTED A SITUATION NOT UNLIKE THE ABORTION CLINIC PROTESTS A CIVIL RIGHTS ORGANIZATION ORGANIZED A CAMPAIGN INCLUDING MARCHES AND PICKETING TO ENCOURAGE THE BLACK CITIZENS OF CLAIBORNE COUNTY MISS TO BOYCOTT LOCAL WHITE MERCHANTS AS THE COURT FOUND THE BOYCOTT EFFORT INVOLVED BOTH CONSTITUTIONALLY PROTECTED FREE SPEECH ACTIVITY AND ALSO UNLAWFUL VIOLENCE SHOTS WERE FIRED THROUGH THE WINDOWS OF BLACKS WHO RESISTED THE BOYCOTT THREATENING TELEPHONE CALLS WERE MADE AND AN ELDERLY PREACHER WAS STRIPPED AND BEATEN AMONG MANY OTHER ACTS AND THREATS OF VIOLENCE THE COURT HELD THAT ACTS OF VIOLENCE MAY BE PUNISHED BUT THAT WHEN SUCH CONDUCT OCCURS IN THE CONTEXT OF CONSTITUTIONALLY PROTECTED ACTIVITY THE GOVERNMENT MUST RESPOND WITH PRECISION OF REGULATION THE GOVERNMENT MUST BE CAREFUL NOT TO IMPOSE ANY PENALTY OR INHIBITION ON LAWFUL PROTEST IN THE COURSE OF IMPOSING LIABILITY ON THE UNLAWFUL ACTS THE PERMISSIBLE SCOPE OF STATE REMEDIES IN THIS AREA IS STRICTLY CONFINED TO THE DIRECT CONSEQUENCES OF SUCH VIOLENT CONDUCT AND DOES NOT INCLUDE CONSEQUENCES RESULTING FROM ASSOCIATED PEACEFUL PICKETING OR OTHER UNION ACTIVITY IN PARTICULAR THE COURT STRESSED THAT SPEECH DOES NOT LOSE ITS PROTECTED CHARACTER SIMPLY BECAUSE IT MAY EMBARRASS OTHERS OR COERCE THEM INTO ACTION EVEN OFFENSIVE' AND COERCIVE' SPEECH THE COURT SAID IS PROTECTED BY THE FIRST AMENDMENT RANDALL TERRY HAS BEEN EXCORIATED FOR HIS STATEMENT THAT OPERATION RESCUE WOULD EXPOSE ABORTION DOCTORS AND HUMILIATE THEM THAT MAY BE REPREHENSIBLE BUT IT IS HIS CONSTITUTIONAL RIGHT POLICE DEPARTMENT V MOSLEY 1972 IN MOSLEY THE SUPREME COURT STRUCK DOWN A CHICAGO ORDINANCE PROHIBITING PICKETING A SCHOOL DURING SCHOOL HOURS EXCEPT IN THE COURSE OF A LABOR DISPUTE THE PROBLEM WITH THE LAW THE COURT SAID IS THAT IT DESCRIBES PERMISSIBLE PICKETING IN TERMS OF ITS SUBJECT MATTER PEACEFUL PICKETING ON THE SUBJECT OF A SCHOOL'S LABORMANAGEMENT DISPUTE IS PERMITTED BUT ALL OTHER PEACEFUL PICKETING IS PROHIBITED THIS OFFENDED THE MOST FUNDAMENTAL PRINCIPLE OF THE FIRST AMENDMENT THAT GOVERNMENT HAS NO POWER TO RESTRICT EXPRESSION BECAUSE OF ITS MESSAGE ITS IDEAS ITS SUBJECT MATTER OR ITS CONTENT THE CLINIC ACCESS BILL SUFFERS PRECISELY THE SAME DEFECT THE BILL PROHIBITS OBSTRUCTIONS OF THE CLINIC BY PROLIFERS BUT EXPRESSLY EXEMPTS CONDUCT BY A PARTY TO A LABOR DISPUTE IN FURTHERANCE OF LABOR OR MANAGEMENT OBJECTIVES IN THAT DISPUTE AS IN MOSLEY THE LEGALITY OF THE CONDUCT DEPENDS ON THE SUBJECT OF THE SPEECH RAV V CITY OF ST PAUL 1992 IN RAV THE SUPREME COURT STRUCK DOWN AN ORDINANCE THAT PROHIBITED CERTAIN KINDS OF SPEECH ONLY IF IT WOULD AROUSE ANGER ALARM OR RESENTMENT ON THE BASIS OF RACE COLOR CREED RELIGION OR GENDER THE COURT RECOGNIZED THAT AS CONSTRUED BY THE STATE COURT THE STATUTE PROHIBITED SPEECH THAT IS NOT CONSTITUTIONALLY PROTECTED JUST AS ACTS OF VIOLENCE AT ABORTION CLINICS ARE NOT CONSTITUTIONALLY PROTECTED BUT THE COURT HELD THAT THE GOVERNMENT MAY NOT SINGLE OUT SPEECH ON SPECIFIED DISFAVORED TOPICS HATE SPEECH BASED ON RACE OR GENDER MAY NOT BE PUNISHED IF HATE SPEECH BASED ON POLITICAL BELIEFS UNION MEMBERSHIP OR SEXUAL ORIENTATION IS NOT THE CLINIC PROTECTION BILL IS SUBJECT TO THE SAME CRITICISM IT CRIMINALIZES SPEECH THAT IS INTENDED TO DISCOURAGE ABORTION IT APPLIES TO NO OTHER SPEECH OTHER PROTESTERS WHO COMMIT ACTS OF TRESPASS OR VIOLENCE ANIMAL RIGHTS ACTIVISTS ANTINUCLEAR PROTESTERS OPPONENTS OF RACISM OR SEXISM ARE NOT COVERED BY THE BILL EVEN IF THEIR PROTESTS ARE EQUALLY VIOLENT CONGRESS HAS SELECTED A SINGLE POINT OF VIEW OPPOSITION TO ABORTION AND SUBJECTED IT TO PENALTIES APPLIED TO NO OTHER POINT OF VIEW IF CONGRESS HAD PASSED A LAW THAT ANYONE COMMITTING CRIMINAL TRESPASS WHILE PROTESTING THE GULF WAR WOULD BE THROWN IN JAIL FOR UP TO THREE YEARS IT IMMEDIATELY WOULD BE RECOGNIZED AS AN INFRINGEMENT OF SPEECH CONGRESS MAY NOT PUNISH EXPRESSIVE CONDUCT DIFFERENTLY BASED ON THE MESSAGE IT CONVEYS IF THE SPONSORS WANT TO SAVE THEIR LEGISLATION THEY MUST MAKE IT APPLY NEUTRALLY TO POLITICAL PROTESTS OF ALL SORTS AND NOT TO A PARTICULAR POSITION WHERE CONGRESS HAPPENS TO SIDE WITH THE TARGETS OF THE SPEECH THE MOST FUNDAMENTAL PRINCIPLE OF THE FIRST AMENDMENT IS THAT THE GOVERNMENT MAY NOT PROSCRIBE SPEECH INCLUDING EXPRESSIVE CONDUCT BECAUSE OF THE IDEAS EXPRESSED A LAW SENDING A PROTESTER TO JAIL BECAUSE HIS SPEECH IS INTENDED TO DISCOURAGE A PERSON FROM OBTAINING AN ABORTION PLAINLY VIOLATES THAT PRINCIPLE MR MCCONNELL IS A PROFESSOR OF LAW AT THE UNIVERSITY OF CHICAGO 9303310104 930331 WHO'S NEWS TOPS APPLIANCE CITY INC TOPS APPLIANCE CITY INC EDISON NJ WILLIAM J TENNANT A FORMER GREAT ATLANTIC & PACIFIC TEA CO EXECUTIVE WAS NAMED SENIOR VICE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS HOME APPLIANCE AND CONSUMER ELECTRONICS RETAILER EFFECTIVE APRIL 1 MR TENNANT 46 YEARS OLD SUCCEEDS RICHARD F GAVINO TOPS SAID MR GAVINO 46 RESIGNED TO PURSUE OTHER INTERESTS MR GAVINO COULDN'T BE REACHED FOR COMMENT MR TENNANT RESIGNED EARLIER IN MARCH FROM A&P MONTVALE NJ WHERE HE HAD BEEN VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER TOPS APPLIANCE CITY INC APPOINTED WILLIAM J TENNANT SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IN YESTERDAY'S WHO'S NEWS COLUMN IT WAS INCORRECTLY STATED THAT MR TENNANT HAD BEEN NAMED CHIEF EXECUTIVE OFFICER 9303310103 930331 WHO'S NEWS ITT CORP ITT CORP NEW YORK JOSEPH H GAREAU 46 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF ITT HARTFORD INSURANCE GROUP HE SUCEEDS HOWARD A YORK 48 WHO THE COMPANY SAID RESIGNED TO PURSUE OTHER INTERESTS MOST RECENTLY MR GAREAU WAS SENIOR VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF ITT HARTFORD'S PROPERTYCASUALTY COMPANIES ITT HARTFORD A UNIT OF ITT CORP IS AN INTERNATIONAL INSURANCE AND FINANCIALSERVICES OPERATION 9303310102 930331 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CUBA'S ECONOMY HAS SHRUNK BY ALMOST TWOTHIRDS AND WILL COLLAPSE BY JULY ACCORDING TO A REPORT ISSUED BY AN EXILE GROUP THAT SAYS IT OBTAINED THE DOCUMENT FROM FIDEL CASTRO'S INNER CIRCLE THE 10PAGE NOVEMBER 1992 SUMMARY MADE PUBLIC BY THE CUBAN AMERICAN NATIONAL FOUNDATION SAID CUBA'S TOTAL FOREIGN RESERVES HAD FALLEN TO ONLY 123 MILLION SUGAR EXPORTS HAD TUMBLED AND GROSS NATIONAL PRODUCT HAD WITHERED TO ONLY 37 OF 198689 LEVELS JORGE MAS CANOSA CHAIRMAN OF THE MIAMIBASED EXILE GROUP SAID THE REPORT WAS PREPARED BY THE EXECUTIVE COMMITTEE OF CUBA'S COUNCIL OF MINISTERS FOR A MEETING NOV 46 1992 CUBAN GOVERNMENT SPOKESMAN JOSE PONCE IN WASHINGTON SAID THE REPORT MIXED FACT WITH FICTION BUT STOPPED SHORT OF DENYING IT THE US STATE DEPARTMENT HAD NO COMMENT GERMAN CONSTRUCTION WORKERS AND EMPLOYERS AGREED ON A 385 PAY INCREASE FOR 11 MILLION EMPLOYEES IN THE WEST AND A 93 RISE FOR 300000 PEOPLE IN THE EAST STARTING TOMORROW THE ONEYEAR AGREEMENT BRINGS THE EASTERN WORKERS' PAY TO ABOUT 82 OF THAT IN THE WEST UP FROM 77 AS PART OF EFFORTS TO EQUALIZE SALARIES SINCE REUNIFICATION THE EASTERN WORKWEEK WILL BE CUT TO 40 HOURS FROM 41 EFFECTIVE OCT 1 THE IG BAU UNION INITIALLY SOUGHT A PAY BOOST OF AT LEAST 69 BUT THE GOVERNMENT HAS URGED RESTRAINT IN A BID TO HOLD INFLATION DOWN BRITISH BUSINESS FAILURES IN THE FIRST QUARTER ROSE 38 TO 15443 FROM A YEAR EARLIER A DUN & BRADSTREET SURVEY FOUND BUT THE RISE SLOWED FROM PREVIOUS QUARTERS SIGNALING AN IMPROVEMENT FOR THE BUSINESS SECTOR WHICH HAS BEEN HURT BY BRITAIN'S LONGEST RECESSION SINCE WORLD WAR II OF THE LATEST INSOLVENCIES THOSE INVOLVING SMALL BUSINESSES ROSE 94 TO 10146 BUT LIQUIDATIONS OF LARGE COMPANIES FELL 56 TO 5287 AS BIGGER FIRMS HAVE MADE COSTCUTTING AND OTHER ADJUSTMENTS INDIA WILL PAY FOR THE DISPUTED SARDAR SAROVAR DAM PROJECT WITHOUT MORE HELP FROM THE WORLD BANK WHICH ANGERED THE GOVERNMENT WITH DOMESTICPOLICY INQUIRIES THE 43 BILLION 280MILE 3165DAM PROJECT TO PROVIDE DRINKING AND IRRIGATION WATER AND ELECTRICITY FOR 40 MILLION PEOPLE WAS BEGUN FIVE YEARS AGO FUNDED MAINLY BY GLOBAL LENDERS THE WORLD BANK LENT 280 MILLION AND WAS READY TO EXTEND AN ADDITIONAL 170 MILLION BUT THE PROJECT WOULD DISPLACE 250000 PEOPLE AND HAS BEEN CRITICIZED BY HUMANRIGHTS GROUPS AND ENVIRONMENTALISTS KUWAIT FROZE ASSETS OF ABDULLAH ALMULLA ACCUSED OF EMBEZZLING 1 MILLION DINARS 33 MILLION FROM A GOVERNMENTOWNED COMPANY AND THOSE OF 18 RELATIVES THE GOVERNMENT ALSO HALTED SALES OF ANY REAL ESTATE OWNED BY THE PROMINENT KUWAITI MERCHANT FAMILY MR ALMULLAH AN EMPLOYEE OF A SINGAPOREBASED INVESTMENT CONCERN ADMITTED BORROWING THE FIRM'S MONEY IT WAS THE THIRD FINANCIAL SCANDAL TO ROCK THE EMIRATE AT LEAST 4 BILLION OF KUWAITI INVESTMENTS IN SPAIN EVAPORATED IN BANKRUPTCY CASES AND TWO EXECUTIVES OF KUWAIT'S OIL TANKER COMPANY ARE CHARGED WITH EMBEZZLING 100 MILLION PAPUA NEW GUINEA WON'T SEEK GREATER EQUITY IN MINING PROJECTS RUN BY FOREIGN COMPANIES A DECISION THIS MONTH TO RENEGOTIATE A JOINT VENTURE IN THE GIANT PORGERA GOLD PROJECT LIFTING PAPUA NEW GUINEA'S STAKE TO 25 FROM 10 WAS A SPECIAL CASE THAT DIDN'T SIGNAL INTERVENTION IN OTHER PROJECTS AN OFFICIAL SAID THE GOVERNMENT HOPES TO FORM A NEW FOREIGNINVESTMENT POLICY ALLOWING 100 OUTSIDE OWNERSHIP OF SOME DEVELOPMENT PROJECTS THE PACIFIC COUNTRY IS REVIEWING ENERGY AND MINING POLICIES FOR REVISIONS OF TAX CAPITAL INVESTMENT AND ROYALTY STRUCTURES ALTHOUGH JAPAN'S UNEMPLOYMENT RATE OF 23 LAST MONTH WAS UNCHANGED FROM JANUARY CONDITIONS IN THE LABOR MARKET CONTINUED TO SOFTEN FOR THE FIRST TIME IN MORE THAN SEVEN YEARS THE NUMBER OF PEOPLE WITH JOBS FELL FROM THE YEAREARLIER LEVEL TO 629 MILLION OFF 250000 BECAUSE OF THE SLUMPING ECONOMY AND THE STRONG EMPLOYMENT RISE THAT TOOK PLACE IN FEBRUARY 1992 MANUFACTURING JOBS TUMBLED 730000 OR 46 TO 15 MILLION THAT SECTOR HAS LED THE WAY IN RECENT MONTHS IN MOVING TO CUT JOBS AND REDUCE FIXED COSTS AMID WEAK DEMAND EMPLOYMENT IN OTHER SECTORS ROSE LED BY A 62 JUMP IN CONSTRUCTION REFLECTING GOVERNMENT OUTLAYS FOR PUBLIC WORKS AND FIRMNESS IN THE HOUSING SECTOR FOR EVERY 100 JOB SEEKERS LAST MONTH JOB OFFERS FELL TO 91 FROM 93 IN JANUARY RESUMING THE 23MONTH DECLINE THAT HAD BEEN BROKEN ONLY BY JANUARY'S RISE MALAYSIA'S ECONOMY EXPANDED AN INFLATIONADJUSTED 8 IN 1992 LESS THAN FORECASTS OF UP TO 87 AND DOWN FROM 87 GROWTH IN 1991 THIS YEAR'S RISE IN GROSS DOMESTIC PRODUCT MAY SLOW TO 76 JAPAN'S POPULATION LAST OCT 1 INCHED UP JUST 033 PERCENTAGE POINT TO AN ESTIMATED 124450000 FROM A YEAR EARLIER THE SMALLEST INCREASE SINCE WORLD WAR II JAPANESE AT LEAST 65 YEARS OLD ACCOUNTED FOR 13 OF THE TOTAL A POSTWAR PEAK AND CHILDREN 14 OR YOUNGER SLIPPED TO 17 THE LOWEST LEVEL EVER RECORDED UNDERSCORING THE RAPID GRAYING OF THE COUNTRY 9303310101 930331 MARKETING & MEDIA GLITCH LEAVES ABC VIEWERS IN THE DARK FOR ONE MINUTE NEW YORK ABC VIEWERS WERE LEFT IN THE DARK LAST NIGHT FOR ONE MINUTE PRECEDING THE START OF WORLD NEWS TONIGHT AN ABC NEWS SPOKESMAN SAID THE GLITCH HAPPENED BECAUSE ABC'S MASTER CONTROL CLOCK WAS OFF BY 60 SECONDS AN ETERNITY IN TELEVISION TIME OR WORSE YET TWO COMMERCIALS ANCHOR PETER JENNINGS WAS IN THE CHAIR READY TO ROLL AND WE WERE JUST WAITING FOR THE LAST MINUTE TO ROLL BY BEFORE STARTING THE SHOW SAID THE SPOKESMAN WHILE THE ANCHOR WAITED VIEWERS WERE LEFT WATCHING A BLACK SCREEN OR A CANNED GRAPHIC FROM THEIR LOCAL STATION MR JENNINGS WHO WAS ON HIS FIRST DAY BACK FROM VACATION LATER APOLOGIZED TO VIEWERS FOR THE LAPSE THE NETWORK A UNIT OF CAPITAL CITIES/ABC INC WAS STILL SEARCHING FOR THE REASON FOR THE MISSING MINUTE LAST NIGHT 9303310100 930331 WHO'S NEWS MELAMED RESIGNS AS HEAD OF GLOBEX TRADING SYSTEM CHICAGO LEO MELAMED QUIT AS CHAIRMAN OF THE GLOBEX ELECTRONIC AFTERHOURS FUTURESTRADING SYSTEM GLOBEX IS A JOINT VENTURE OF THE CHICAGO MERCANTILE EXCHANGE CHICAGO BOARD OF TRADE AND REUTERS HOLDINGS PLC THE SYSTEM WHICH WAS LAUNCHED LAST YEAR WAS TOUTED AS THE WORLD'S FIRST TRULY GLOBAL COMPUTER SYSTEM FOR TRADING FUTURES CONTRACTS BASED ON CURRENCIES INTEREST RATES AND OTHER INSTRUMENTS MR MELAMED A FORMER CHAIRMAN OF THE CHICAGO MERC WHO HELPED TO DESIGN AND LAUNCH GLOBEX SAID HE WAS RETIRING TO DEVOTE MORE TIME TO HIS OWN CHICAGOBASED FUTURES FIRM DELLSHER INC CHICAGO MERC EXECUTIVES SAY MR MELAMED AND CURRENT CME CHAIRMAN JOHN F SANDNER HAVE DISAGREED OVER BOTH GLOBEX AND LEADERSHIP OF THE CME ITSELF SOME SPECULATE THAT MR MELAMED'S DECISION WAS BASED IN PART ON THESE FACTORS IN A STATEMENT MR SANDNER TRIED TO PUT SUCH RUMORS TO REST I WISH TO EXPRESS MY APPRECIATION FOR LEO MELAMED'S DEDICATION AND COMMITMENT TO THE LAUNCHING MR SANDNER SAID SINCE ITS LAUNCH GLOBEX HAS BEEN PLAGUED BY LOW TRADING VOLUME AND TECHNOLOGICAL GLITCHES GLOBEX EXECUTIVES HOPE TO INCREASE VOLUME BY ADDING MORE COMPUTER TRADING TERMINALS AND ENTICING OTHER FUTURES EXCHANGES TO OFFER THEIR PRODUCTS ON THE SYSTEM 9303310099 930331 WHO'S NEWS WELDOTRON CORP WELDOTRON CORP PISCATAWAY NJ JOHN S BLASKO 45 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENTMANUFACTURING MOST RECENTLY HE WAS VICE PRESIDENT OPERATIONS FOR HEINTZ CORP A MANUFACTURER OF JET ENGINE PARTS WELDOTRON IS A MAKER OF INDUSTRIAL PACKAGING MACHINERY AND FOOD PACKAGING AND WEIGHING SYSTEMS 9303310098 930331 EXAS INSTRUMENTS GETS JOB DALLAS TEXAS INSTRUMENTS INC SAID ITS DEFENSE SYSTEMS AND ELECTRONICS GROUP RECEIVED A 182 MILLION ADDON CONTRACT FROM THE NAVAL AIR SYSTEMS COMMAND FOR 846 HIGH SPEED ANTIRADAR MISSILES THE ELECTRONICS COMPANY SAID THAT DELIVERIES OF THE MISSILES TO THE AIR FORCE ARE EXPECTED TO BEGIN IN 1994 AND SHOULD BE COMPLETED BY OCTOBER 1995 THE NAVAL AIR SYSTEMS COMMAND IS A JOINT PROGRAM OF THE NAVY AND THE AIR FORCE 9303310097 930331 ENTERPRISE FOCUS ON FRANCHISING DISCLOSURE GUIDELINES ADVANCE TEXAS BILL IS REWRITTEN BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL THE FINAL DRAFT OF NEW FRANCHISEDISCLOSURE GUIDELINES IS COMPLETED THE GUIDELINES THAT GOVERN FRANCHISERS' FORMAL DISCLOSURES HAVE BEEN LARGELY UNCHANGED SINCE 1975 BUT NOW AFTER MORE THAN TWO YEARS OF EFFORT A COMMITTEE OF THE NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION HAS FINISHED A MAJOR OVERHAUL AIMED AT GIVING FRANCHISE INVESTORS MORE PROTECTION COMMITTEE CHAIRMAN JOSEPH J BJERKE SOUTH DAKOTA'S FRANCHISE ADMINISTRATOR SAYS THE REGULATORS' ASSOCIATION WHOSE RECOMMENDATIONS ARE OFTEN TRANSLATED INTO STATE REGULATIONS ON FRANCHISING AS WELL AS SECURITIES IS EXPECTED TO RATIFY THE PROPOSED REVISION APRIL 25 THE GUIDELINES WOULD REQUIRE FRANCHISERS TO REWRITE OFFERING CIRCULARS THE KEY DOCUMENTS GIVEN TO PROSPECTIVE FRANCHISEES FOR EXAMPLE THE GUIDELINES CALL FOR MORE DISCLOSURE ABOUT FRANCHISEE FAILURES AND TURNOVER ASSUMING THE FEDERAL TRADE COMMISSION CLEARS THE GUIDELINES STATES WILL SWIFTLY ADOPT THEM IN RULES TO TAKE EFFECT BEGINNING IN 1994 SAYS NEIL A SIMON A WASHINGTON FRANCHISING ATTORNEY FRANCHISERS WILL NOT LIKE CERTAIN ASPECTS OF THE GUIDELINES SAYS NADINE MANDEL A FRANCHISING LAWYER IN PHILADELPHIA BROADER DISCLOSURE RULES WOULD MAKE IT MORE COSTLY AND DIFFICULT TO CHANGE OPERATING SYSTEMS SHE SAYS AND WOULD EXPOSE TO COMPETITORS MORE DETAILS THAT FRANCHISERS HAVE DEEMED CONFIDENTIAL BUT ASPECTS OF THE GUIDELINES MAY DISAPPOINT FRANCHISEES THERE IS NO CALL FOR MANDATORY FRANCHISER CLAIMS ABOUT FRANCHISEE EARNINGS FOR INSTANCE THE GUIDELINE CHANGES ARE A GOOD START BUT THERE'S A LOT OF WORK THAT STILL NEEDS TO BE DONE SAYS ROBERT L PURVIN JR CHAIRMAN OF THE AMERICAN ASSOCIATION OF FRANCHISEES AND DEALERS A TRADE GROUP BASED IN SAN DIEGO TEXAS REWRITES A FASTFOOD BILL BUT NOT TO ALL FRANCHISERS' TASTE TEXAS LEGISLATORS WON ATTENTION IN FEBRUARY BY PROPOSING A LOOPHOLERIDDEN FRANCHISING BILL AIMED MOSTLY AT RESTRICTING TACO BELL THE PEPSICO INC UNIT HAS BEEN THE TARGET OF FRANCHISEE COMPLAINTS LARGELY OVER NEW UNITS' ALLEGED ENCROACHMENT ON EXISTING FRANCHISEES NOW AFTER LOBBYING BY PEPSICO AND OTHERS THE STATE SENATE HAS CLEARED A MUCH MILDER MEASURE THAT IT DEEMS A COMPROMISE THOUGH LESS EXPLICIT IN CURBING ENCROACHMENT THE BILL NOW WOULD APPLY GENERALLY TO FASTFOOD FRANCHISERS A HOUSE SUBCOMMITTEE IS EXPECTED TO WEIGH THE BILL SOON MANY FRANCHISERS STILL OPPOSE THE MEASURE IT WOULD IMPOSE A DUTY OF GOOD FAITH ON FRANCHISERS OBLIGATING THEM TO REFRAIN FROM CONDUCT THAT INJURES FRANCHISEES A GROUP CALLING ITSELF THE TEXAS COALITION FOR RESPONSIBLE FRANCHISING SAYS THE BILL WOULD EXPOSE FRANCHISERS TO LIABILITY AND PUNITIVEDAMAGE AWARDS NOT OTHERWISE APPLIED TO SIMILAR COMMERCIAL RELATIONSHIPS PROPONENTS SAY THE PROVISIONS ARE NECESSARY TO ENSURE MINIMUM STANDARDS OF CONDUCT BY FRANCHISERS MEANWHILE SOME INDUSTRY PEOPLE SAY THEY ARE FURIOUS AT PEPSICO FOR BREAKING RANKS WITH A FRANCHISER COALITION AGAINST THE BILL THEY SAY PEPSICO UNLIKE MANY OTHERS HAS DECIDED NOT TO FIGHT THE BILL IN ITS REVISED FORM WE WOULD HAVE AN EASIER TIME ARGUING AGAINST THE BILL IF PEPSICO HAD NOT SIGNED OFF ON IT AT THE ELEVENTH HOUR IN THE SENATE SAYS STEPHEN B HAMMERSTEIN PRESIDENT OF KWIKKOPY CORP IN CYPRESS TEXAS AT TACO BELL IN IRVINE CALIF A SPOKESMAN CONFIRMS THAT THE COMPANY AND ITS PARENT WON'T FIGHT THE BILL IN THE FORM APPROVED BY THE SENATE A BRIDGE CLUB'S OWNERS SAY THEY WERE DEALT A BAD HAND WHEN IT COMES TO ENFORCING OPERATING RULES USUALLY IT'S THE FRANCHISER THAT'S BASHING ALLEGEDLY DERELICT FRANCHISEES BUT NOW IN A LAWSUIT UNDER WAY IN NEW YORK STATE COURT FOR DUTCHESS COUNTY PLAINTIFFS MARY CRENSHAW AND JAMES STUPPLE SAY AMERICAN CONTRACT BRIDGE LEAGUE INC FAILED TO ENFORCE ITS STANDARDS FOR AWARDING MASTERPOINTS A MEASURE OF ACHIEVEMENT AT THE CARD GAME THE PLAINTIFFS WHO OPERATE A CLUB NAMED THE BRIDGE HUB IN POUGHKEEPSIE NY SAY THEY COMPLIED WITH THE STANDARDS BUT THEN LOST BUSINESS TO A CLUB THAT DID NOT BRIDGE PLAYERS GRAVITATE TO CLUBS THAT MAKE IT EASIER TO EARN POINTS SAYS THE PLAINTIFFS' ATTORNEY VINCENT L DEBIASE THE SUIT SEEKS DAMAGES IN PART UNDER FRANCHISE LAWS ACBL A NOTFORPROFIT ENTERPRISE BASED IN MEMPHIS TENN CLAIMS THAT IT ISN'T A FRANCHISER BUT THE COURT HAS STATED THAT IT IS MR DEBIASE SAYS HE WILL ASK NEXT MONTH FOR SUMMARY JUDGMENT ON THE PORTION OF THE CASE INVOLVING FRANCHISE LAW THE LEAGUE'S ATTORNEY RICHARD J ZAHNLEUTER IN ALBANY NY SAYS THAT WHEN THE BRIDGE HUB COMPLAINED ABOUT ITS RIVAL ACBL DID INVESTIGATEAND DID ISSUE A PENALTY ARE FRANCHISEES REALLY AS SUCCESSFUL AS A GALLUP STUDY FOUND SINCE EARLY LAST YEAR THE INTERNATIONAL FRANCHISE ASSOCIATION THE MAJOR FRANCHISER TRADE GROUP HAS BEEN TOUTING THE STUDY WHICH IT COMMISSIONED BUT SOME PEOPLE NOW ARE RAISING QUESTIONS ABOUT SUCH FINDINGS AS A 94 SUCCESS RATE AND PRETAX ANNUAL INCOME AVERAGING 124290 FOR THE 994 RESPONDENTS FRANCHISER STUART J DIZAK HAS ASKED THE HOUSE SMALL BUSINESS COMMITTEE TO LOOK INTO THE STUDY'S METHODOLOGY IT WASN'T A LEGITIMATE POLL CHARGES MR DIZAK PRESIDENT OF VDS VIDEO SERVICES INC IN PITTSFORD NY AMONG OTHER FAILINGS IT LOOKED AT A LIMITED NUMBER OF FRANCHISERS HE SAYS OTHERS ALSO EXPRESS DOUBTS ABOUT THE STUDY IT PURPORTS TO REPORT FRANCHISEE SATISFACTION BUT IT DIDN'T SURVEY PEOPLE WHO HAD FAILED OR BAILED OUT SAYS ANDREW C SELDEN A FRANCHISING LAWYER IN MINNEAPOLIS THE SUBJECTS WERE CHOSEN RANDOMLY FROM LISTS OF ACTIVE FRANCHISEES REPLIES JEFFREY E KOLTON A WASHINGTON CONSULTANT WHO AIDED GALLUP BUT HE SAYS NO NAMES WERE AVAILABLE FROM SOME BIG FRANCHISE SYSTEMS BECAUSE OF EXEMPTIONS IN STATE FILING RULES AND NO FRANCHISEE DROPOUTS WERE INCLUDED STILL MR KOLTON THE IFA AND GALLUP ORGANIZATION INC ALL CALL THE STUDY SCIENTIFIC AND RELIABLE SCOTT S AHLSTRAND A SENIOR ANALYST IN GALLUP'S CHICAGO OFFICE SAYS A HOUSE SMALL BUSINESS COMMITTEE AIDE HAS ASKED HIM FOR DETAILS ON THE STUDY A SPOKESMAN FOR THE COMMITTEE SAYS ONLY THAT IT HAS RECEIVED ALLEGATIONS ABOUT THE USE OF MISLEADING INFORMATION AND POLLING DATA REGARDING THE SUCCESS OF FRANCHISES THOMAS E DAVIS OF FREEPORT ILL WHO IS A FORMER GEORGIA FRANCHISEE OF POSTAL INSTANT PRESS INC SAYS HE HAS COMPLAINED TO THE FEDERAL TRADE COMMISSION ABOUT FRANCHISESHOW TV ADS THAT CITE THE GALLUP FINDINGS 9303310096 930331 AETNA UNIT'S MEXICAN STAKE HARTFORD CONN AETNA LIFE & CASUALTY CO SAID A SUBSIDIARY INCREASED TO 30 FROM 10 ITS INTEREST IN VALORES DE MONTERREY SA A MEXICAN INSURANCE JOINT VENTURE AT A COST OF 76 MILLION AETNA HAS AGREED TO FURTHER INCREASE ITS SHARE IN THE JOINT VENTURE SUBJECT TO APPROVAL FROM THE MEXICAN GOVERNMENT VALORES DE MONTERREY OWNS SEGUROS MONTERREY MEXICO'S THIRDLARGEST MULTILINE INSURANCE COMPANY AND FIANZAS MONTERREY THE COUNTRY'S SECONDLARGEST BONDING COMPANY 9303310095 930331 MARKETING & MEDIA FORMER MAXWELL TREASURER FACES CONSPIRACY CHARGE LONDON THE FORMER TREASURER OF THE MAXWELL GROUP WAS CHARGED WITH CONSPIRACY TO DEFRAUD CREDIT SUISSE THE SERIOUS FRAUD OFFICE ANNOUNCED ALBERT FULLER 41 YEARS OLD OF LEIGHTON BUZZARD ENGLAND IS THE FIFTH MAN TO BE CHARGED IN THE AFFAIR OF ROBERT MAXWELL WHOSE NEWSPAPER EMPIRE COLLAPSED AFTER HIS DEATH IN 1991 A HEARING ON THE CHARGES IS SCHEDULED FOR TOMORROW THE SERIOUS FRAUD OFFICE SAID THE OTHER MEN CHARGED ALSO WILL BE AT THE HEARING MR MAXWELL'S SONS KEVIN AND IAN AND FORMER AIDES LARRY TRACHTENBERG AND ROBERT BUNN HAVE BEEN CHARGED WITH PLUNDERING MAXWELL COMPANY PENSION FUNDS AND DEFRAUDING BANKS OF AT LEAST 2333 MILLION KEVIN MAXWELL 33 FACES SIX COUNTS OF THEFT AND TWO OF CONSPIRACY TO DEFRAUD IAN MAXWELL 36 FACES ONE COUNT OF CONSPIRACY TO DEFRAUD AND MR TRACHTENBERG 38 FACES FOUR CHARGES OF THEFT AND TWO OF CONSPIRACY TO DEFRAUD MR BUNN 46 IS CHARGED WITH CONSPIRING TO DEFRAUD A SYNDICATE OF 35 BANKS BY ILLEGALLY PLEDGING STOCK AS SECURITY FOR LOANS TO A THIRD PARTY BREACHING TERMS OF A LOAN PACT BETWEEN THE BANKS AND MAXWELL COMMUNICATION CORP 9303310094 930331 LEISURE & ARTS OPERA GLASS ARTIST DESIGNS DEBUSSY OPERA BY DAVID LITTLEJOHN I LOVE TO SEE EXCITING NEW STAGE DESIGNS CREATED BY ARTISTS SYMPATHETIC TO OPERA PEOPLE LIKE JOSEF SVOBODA JEAN PIERRE PONNELLE AND DAVID HOCKNEY LISTEN CAREFULLY TO SCORES AND THE ADVICE OF MUSICAL EXPERTS THEY ACCEPT MORE OR LESS WILLINGLY THE DEMANDS OF THE OPERA STAGE AND ALL THE COMPROMISES IT REQUIRES AT THEIR BEST THEY COME UP WITH VISUAL REALIZATIONS THAT OPEN UP AND ENLARGE THE ORIGINAL WORKS BUT WHEN THE SEATTLE OPERA'S SPECTACULAR NEW PRODUCTION OF CLAUDE DEBUSSY'S PELLEAS ET MELISANDE WAS PROMOTED PRIMARILY AS AN EXHIBITION OF GIGANTIC NEW SCULPTURES I BEGAN TO WONDER IF SOMEONE HADN'T GOT THE PRIORITIES WRONG DALE CHIHULY WHO WAS COMMISSIONED TO DESIGN THE SETS FOR THIS PRODUCTION IS WELL KNOWN FOR CREATING BRILLIANTLY COLORED BLOWNGLASS OBJECTS THAT MIMIC A VARIETY OF EXOTIC SHAPES UNDERSEA FLORAL EROTIC ORGANIC BUT THE SEATTLE COMPANY'S ADVANCE PUBLICITY DEVOTED MORE ATTENTION TO SEATTLE'S OWN DALE CHIHULY PERHAPS THE WORLD'S BESTKNOWN GLASS ARTIST THAN TO THE COMPOSER THE CONDUCTOR OR THE SINGERS WHEN HE LEARNED THAT ALL SEVEN SEATTLE PERFORMANCES OF THIS NOTORIOUSLY CROWDDISPLEASING OPERA HAD SOLD OUT BEFORE THE OPENING CONDUCTOR GERARD SCHWARZ SAID I'D LIKE TO THINK THAT SALES ARE GOING SO WELL BECAUSE PEOPLE ARE EAGER TO HEAR DEBUSSY'S OPERA BUT I KNOW IT IS BECAUSE EVERYONE WANTS TO SEE WHAT DALE WILL DO WITH THE SETS WHAT DALE DID WITH THE SETS WAS TO ENCASE THE STAGE SPACE WITH A SHINY BLACK PLASTIC BOX INSIDE THAT BOX HE PLACED AN ARRAY OF WEIRD THINGS WHICH THE INGENIOUS SEATTLE OPERA TECHNICAL STAFF ROBERT SCHAUB DIRECTOR CRAFTED OUT OF PLASTIC AND FABRIC ENLARGING ON MR CHIHULY'S ORIGINAL GLASS MODELS EACH OF DEBUSSY'S 14 FLOATING DISPARATE SCENES THUS BECOMES AN EERIE PITCHDARK SPACE DOMINATED BY A MONSTROUS EVOCATIVE GLOWING OBJECT OMINOUS OR EVIL IN ITS SHAPE BUT SEDUCTIVELY LUSCIOUS IN ITS BRIGHT OPALESCENT OR TRANSLUCENT COLORS THE FOREST OF THE FIRST SCENE IS MADE OF TEN GLITTERING GREEN COLUMNS LIKE SPARKLING ROLLEDUP PLASTIC SHOWER CURTAINS INSIDE THE ROOMS OF KING ARKEL'S CASTLE HANG ORGANIC OBJECTS TWICE AS HIGH AS THE CHARACTERS WHO WALK BENEATH THEM ONE IS A MALEVOLENT ORANGE ORCHID FROM WHICH DROOPS A COILING ROOT ANOTHER A MOTTLED MULTIHORNED SEA CREATURE GLOWING FIERY RED AT THE CROTCH LONG PLASTIC TUBES OR INTESTINES HANG OR CRAWL ACROSS THE STAGE ALONGSIDE THE TOWER A BLACK CUBE ABOUT SIX FEET HIGH FROM WHICH MELISANDE LIKE RAPUNZEL MUST LET DOWN HER HAIR IS SCATTERED A PILE OF HUGE YELLOW LEMON PEELS OR CURLING CHEESE SLICES THE SINGERS ON STAGE TAKE NO NOTICE OF THESE THINGS BUT IT'S HARD FOR THE AUDIENCE TO LOOK AT ANYTHING ELSE THE MAGIC WELL ABOUT WHICH PELLEAS AND MELISANDE BEGIN AND END THEIR UNONSUMMATED LOVE IS A GIGANTIC PINK OYSTER SHELL MOTTLED WITH RUBIES OUT OF WHICH RISES A SWANNECKED GOLDEN GLASSY PHALLUS OR TONGUE OR BANANA SLUG TWO OF MR CHIHULY'S DESIGNS STRUCK ME AS PERTINENT AND FUNCTIONAL RATHER THAN DAZZLINGLY OBSCURE THE FETID UNDERGROUND VAULT INTO WHICH GOLAUD DRAGS HIS HALFBROTHER PELLEAS FOR SOME SYMBOLIC REASON IS A DROOPING MOLDY ROSEORANGE TENT AS THE TWO MEN RUSH OUT GASPING FOR AIR THE TENT COLLAPSES THEY SPEND THE NEXT SCENE STOMPING OVER IT LIKE A GREAT COLLAPSED PARACHUTE MIDWAY IN THE FINAL SCENE IN WHICH MELISANDE FORGIVES HER JEALOUS MURDERERHUSBAND AND LAPSES INTO DEATH THE BLACK PANELS OF THE REAR WALL ROTATE INTO BRILLIANT BARS OF BRIGHT ORANGE ALTHOUGH THIS ANTIOPERATIC OPERA RANKS ONLY 92ND AMONG THE OPERAS MOST FREQUENTLY PERFORMED NOWADAYS IT HAS RECEIVED A NUMBER OF IMPRESSIVE PRODUCTIONS IN RECENT YEARS THE WORK'S NEW POPULARITY SUCH AS IT IS MAY BE DUE TO ITS OPEN AHISTORICAL VAGUENESS AND ITS WEALTH OF PROTOFREUDIAN SYMBOLS WHICH INVITE THE KIND OF ANYTHINGGOES STAGING CONTEMPORARY PRODUCERS ENJOY DEBUSSY'S TEXT AND SCORE DO CONTAIN HUNDREDS OF CUES AND CLUES FOR PHYSICAL PRODUCTION MOST OF WHICH ARE IGNORED NOWADAYS THEY CERTAINLY WERE IN SEATTLE BY DIRECTOR NEIL PETER JAMPOLIS IN THEIR PLACE WE HAD MR CHIHULY'S CONTRIBUTIONS IMPRESSIVE AS THEY MAY BE AS FREESTANDING OBJETS D'ART IN THE CONTEXT OF THIS OPERA MOST OF THEM SEEMED SHOWY SURREALIST DISTRACTIONS WHAT THEY WERE DISTRACTING US FROM UNFORTUNATELY WAS A FAIRLY TEPID MUSICAL AND DRAMATIC REALIZATION OF THIS PROBLEMATIC MUSIC DRAMA NO PROBLEMS WITH THE MUSIC JUST WITH THE DRAMA WHICH IS WHY MANY MUSIC LOVERS PREFER IT ON RECORD WITH THAT IN MIND MR CHIHULY'S SETS MAY HAVE DESERVED THE APPLAUSE THEY RECEIVED AT EACH CURTAIN RISE APPLAUSE MORE FERVENT THAN THAT ACCORDED THE SINGERS OR CONDUCTOR APPLAUSE WHICH KEPT SHATTERING DEBUSSY'S FLOWING MUSICAL STREAM THE SPECTATORS AROUND ME ALSO KEPT LAUGHING AT THE SUPERTITLES FOR WHICH I CAN'T REALLY BLAME THEM MANY OF DEBUSSY'S VERBAL UTTERANCES AT ONCE GNOMIC AND BANAL LOOK SILLY TURNED INTO ENGLISH WORDS PROJECTED ON A SCREEN NOISY SET CHANGES ALL THOSE BIG THINGS BEING DROPPED OR DRAGGED INTO PLACE KEPT STEPPING ON THE OPERA'S SHIMMERING INTERLUDES MR SCHWARZ'S READING OF THESE INTERLUDES WAS LESS THAN ETHEREAL BUT STILL THE MOST AFFECTING MUSIC OF THE PRODUCTION PARTICULARLY THE SOARING EPISODE THAT FOLLOWS SCENE ELEVEN OTHERWISE WITH THE EXCEPTION OF THE HIGH DRAMATICS OF THE 11TH AND 13TH SCENES JEALOUS RAGE/ECSTATIC LOVE HIS INTERPRETATION TENDED TOWARD THE SWEET AFTER PIERRE BOULEZ'S PASSIONATE EROTIC STAGED AND RECORDED VERSIONS OF PELLEAS WE KNOW THERE IS MORE TO THE OPERA THAN THAT THE ONE FLAWLESS SINGINGACTOR IN THE CAST WAS KENNETH COX AS OLD KING ARKEL PLAYED IN WHAT IS BECOMING A CLICHE IN A WHEELCHAIR MR COX WHO HAS A DEEP BEAUTIFUL POIGNANTLY RESONANT BASS SANG THE SAME ROLE IN THE BOULEZ/STEIN PRODUCTION FOR THE WELSH NATIONAL OPERA IN 1992 BY ALL ACCOUNTS THE BEST PELLEAS OF RECENT YEARS I LAST HEARD MICHAEL DEVLIN SING GOLAUD IN SAN FRANCISCO 14 YEARS AGO DRESSED HERE IN EARLY 20THCENTURY MILITARY GEAR HE ACTED MECHANICALLY AND ENUNCIATED IMPERFECTLY BUT HIS GROWLING BITTERNESS SOUNDED GENUINE ENOUGH SHERRI GREENAWALD SANG MELISANDE VERY SWEETLY BUT CONVEYED LITTLE OF THE COMPLEXITY NUANCE OR MAGIC OF THIS DIABOLICAL ROLE AS PELLEAS I HEARD TENOR KIP WILBORN WHO BEGAN ADEQUATELY IF CHARMLESSLY BUT ROSE TO IMPRESSIVE HEIGHTS IN HIS RAPTUROUS FINAL SCENE THE OVERSIZED BOY SOPRANO WHO SANG YNIOLD WAS SIMPLY EMBARRASSING BUT THEN I USUALLY FIND THIS ROLE AN EMBARRASSMENT THERE IS SOMETHING HEROIC ABOUT GENERAL DIRECTOR SPEIGHT JENKINS'S PERSISTENCE IN OFFERING SEATTLE THESE GOFORBROKE PRODUCTIONS OF OPERAS FAR FROM THE TOP TWENTY HE HAS JUST BEEN GIVEN A 10YEAR CONTRACT RENEWAL WHICH SUGGESTS THAT THE COMPANY'S TRUSTEES AT LEAST ARE PLEASED WITH THE ADVENTUROUS THINGS HE IS DOING 9303310093 930331 WHO'S NEWS FLEMING COS NAMES STAUTH AS PRESIDENT AND OPERATING CHIEF OKLAHOMA CITY FLEMING COS NAMED ROBERT E STAUTH PRESIDENT AND CHIEF OPERATING OFFICER IN A MOVE THAT COULD ESTABLISH HIM AS THE LIKELY SUCCESSOR TO DEAN WERRIES CHAIRMAN AND CHIEF EXECUTIVE OFFICER A SPOKESMAN DECLINED TO COMMENT ON THE COMPANY'S PLAN OF SUCCESSION AND EMPHASIZED THAT MR WERRIES 63 YEARS OLD DOESN'T PLAN TO RETIRE SOON FLEMING THE US'S LARGEST GROCERY WHOLESALER ALSO NAMED R RANDOLPH DEVENING 51 VICE CHAIRMAN MR DEVENING PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND HE WILL RETAIN THE LATTER TITLE MR STAUTH 48 PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT FOR DIVISION OPERATIONS AS CHIEF OPERATING OFFICER MR STAUTH SUCCEEDS JOHN MOLL 58 WHO OPTED FOR EARLY RETIREMENT LAST YEAR MR WERRIES HAD PREVIOUSLY BEEN PRESIDENT GARY VINEBERG AN ANALYST WITH MERRILL LYNCH & CO IN NEW YORK SAID MR STAUTH APPEARS TO HAVE THE EDGE AS HEIR APPARENT IT LOOKS TO ME AS IF STAUTH IS THE MAN TO BE THE NEXT CHIEF EXECUTIVE OFFICER HE SAID ADDING HE'S AN OPERATIONS GUY AND HE DID HIS TIME IN THE TRENCHES 9303310092 930331 CORRECTIONS & AMPLIFICATIONS PHILIP MORRIS COS' PRESIDENT AND CHIEF OPERATING OFFICER WILLIAM MURRAY EXERCISED STOCK OPTIONS LAST YEAR TO ACQUIRE 406000 SHARES WITH AN INDICATED PAPER PROFIT OF 199 MILLION AT THE TIME BUT MR MURRAY HASN'T SOLD ANY OF THE SHARES A WHO'S NEWS ARTICLE YESTERDAY INCORRECTLY STATED THAT HE HAD DISPOSED OF THE STOCK EQUUS II INC AND EQUUS INVESTMENTS INC AGREED TO MERGE IN A TRANSACTION VALUED AT AN ESTIMATED 125 MILLION AN ARTICLE YESTERDAY MISSTATED THE VALUE AS 7130000 9303310091 930331 LLOYD BENTSEN'S SON TO PAY RTC DEBT OWED TO THRIFT WASHINGTON LAN BENTSEN SON OF TREASURY SECRETARY LLOYD BENTSEN AGREED TO PAY THE RESOLUTION TRUST CORP 28 MILLION A BIT MORE THAN 50 CENTS ON THE DOLLAR TO SETTLE HIS PAST DEBTS TO A FAILED TEXAS THRIFT TAKEN OVER BY THE AGENCY VENTURES CONTROLLED BY LAN BENTSEN OWED THE RTC 54 MILLION HE BORROWED THE MONEY FROM UNIVERSITY SAVINGS ASSOCIATION IN HOUSTON TO MAKE REAL ESTATE INVESTMENTS THE RTC SAID THE RTC THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY ASSUMED THE THRIFT'S BAD DEBTS LAN BENTSEN'S PAYMENT WILL BE MADE IN CASH AND REAL ESTATE LLOYD BENTSEN IS CHAIRMAN OF A HIGHLEVEL GOVERNMENT BOARD THAT OVERSEES THE RTC HE AND HIS SON BOTH HAVE INTERESTS IN A REAL ESTATE CONCERN 9303310090 930331 CALIFORNIA DEBT RATING IS REAFFIRMED BY S&P DESPITE FISCAL PROBLEM NEW YORK STANDARD & POOR'S CORP ESTIMATED THAT CALIFORNIA IS FACING AN 8 BILLION SHORTFALL IN BALANCING ITS FISCAL 1994 BUDGET BUT NONETHELESS REAFFIRMED A SINGLEAPLUS RATING ON THE STATE'S 17 BILLION OF OUTSTANDING DEBT AS WELL AS ITS PENDING 780 MILLION IN GENERAL OBLIGATION BONDS THE RATING AGENCY SAID THE MAGNITUDE OF THE GAP THE STATE'S VOLATILE BUDGET HISTORY AND THE POLITICAL CONTROVERSY OVER MANY BUDGETBALANCING PROPOSALS MADE THE RISK OF NOT ACHIEVING A TIMELY RESOLUTION CONSIDERABLE IT ALSO SAID THE STATE'S CASH POSITION WAS WEAK NECESSITATING SHORTTERM BORROWING OF UP 5 BILLION IN APRIL AND JUNE TO PAY BILLS CALIFORNIA WENT THROUGH A PROTRACTED BUDGET CRISIS LAST YEAR AS THE RESULT OF A POLITICAL IMPASSE OVER CLOSING A HUGE DEFICIT 9303310089 930331 MARKETING & MEDIA BOOK PURCHASES GREW 7 IN 1992 SURVEY FINDS NEW YORK AMERICANS BOUGHT 7 MORE BOOKS IN 1992 THAN IN 1991 ACCORDING TO A NEW STUDY BUT PURCHASES BY THE UNDER25 GROUP DROPPED 27 A TOTAL OF 882 MILLION BOOKS WERE PURCHASED BY ADULTS LAST YEAR OR AN AVERAGE OF 45 BOOKS PER PERSON SAYS THE BOOK INDUSTRY STUDY GROUP THE NONPROFIT INDUSTRY ORGANIZATION THAT CONDUCTED THE SURVEY THE RESULTS CAME FROM DIARIES KEPT BY 16000 HOUSEHOLDS AND SHOWED THAT 65 OF US HOUSEHOLDS BOUGHT A BOOK LAST YEAR PUBLISHERS WERE CONCERNED ABOUT THE DECLINE IN SALES TO TEENAGERS AND YOUNG ADULTS BUT EXPRESSED SOME WARINESS OVER THE STUDY'S ACCURACY THE SAME GROUP HAD TO RESTATE THE 1991 NUMBERS AFTER INITIALLY REPORTING THAT ONLY 40 OF AMERICANS BOUGHT A BOOK THAT YEAR A FIGURE THAT WAS LATER REVISED TO 64 AFTER CHANGES IN THE METHODOLOGY 9303310088 930331 MAGAININ GETS DRUG PATENT PLYMOUTH MEETING PA MAGAININ PHARMACEUTICALS INC SAID IT RECEIVED A PATENT FOR ITS HUMAN ANTIBIOTIC DRUG SQUALAMINE WHICH IS ISOLATED FROM THE TISSUES OF THE DOGFISH SHARK THE BIOPHARMACEUTICAL COMPANY SAID SQUALAMINE HAS SHOWN ACTIVITY AGAINST BACTERIA FUNGI AND PROTOZOA IT HAS THE POTENTIAL TO BE DEVELOPED AS AN ORALLY ADMINISTERED ANTIBIOTIC IT ADDED IF SQUALAMINE PROVES TO BE SAFE AND EFFECTIVE IN HUMANS AND RECEIVES FOOD AND DRUG ADMINISTRATION APPROVAL IT WILL BE MADE SYNTHETICALLY OR THROUGH BIOTECHNOLOGY PROCESSES THE COMPANY SAID IT WON'T BE EXTRACTED FROM SHARKS 9303310087 930331 WHAT'S NEWS WORLDWIDE WESTERN CREDITORS NEARED AN ACCORD ON RESCHEDULING RUSSIA'S DEBT A COMPROMISE ON ALLEVIATING THE 85 BILLION RUSSIAN DEBT 70 BILLION OF WHICH WAS INHERITED FROM THE SOVIET UNION COULD BE REACHED BEFORE THIS WEEKEND'S MEETING BETWEEN CLINTON AND YELTSIN ACCORDING TO US OFFICIALS THEY SAID THE RUSSIAN PRESIDENT'S BATTLE LAST WEEK WITH HIS HARDLINE PARLIAMENT HAS BOOSTED HIS POLITICAL STANDING AMONG WESTERN CREDITOR GOVERNMENTS REFORMIST LAWMAKERS IN MOSCOW SOUGHT TO HELP YELTSIN PLOT STRATEGY IN THE UNRESOLVED POWER STRUGGLE WITH HARDLINERS BUT MANY OF HIS SUPPORTERS SEEMED UNCERTAIN ABOUT HOW TO PROCEED THE US MAY PUSH FOR A WORLDWIDE BOYCOTT OF LIBYAN OIL IF THAT NATION CONTINUES TO REFUSE TO TURN OVER SUSPECTS ACCUSED OF CARRYING OUT THE 1988 BOMBING OF A PAN AM JET SECRETARY OF STATE CHRISTOPHER SAID THE UN IS SET TO CONDUCT A REVIEW SOON OF THE SANCTIONS IT IMPOSED AGAINST LIBYA LAST APRIL A NONPARTISAN CONGRESSIONAL PANEL PLANS TO ISSUE A REPORT TODAY TELLING LAWMAKERS THAT A COMBINATION OF GOVERNMENT RATESETTING AND MANAGED COMPETITION MAY BE THE BEST WAY TO CURB THE COUNTRY'S HEALTHCARE EXPENDITURES THE CLINTON ADMINISTRATION ALREADY HAS BEEN LEANING TOWARD THIS STRATEGY CLINTON INTENDS TO ASK CONGRESS NEXT WEEK TO LIFT A 16YEAROLD BAN ON FEDERALLY FUNDED ABORTIONS THE WHITE HOUSE ANNOUNCED THE PRESIDENT WILL PROPOSE THE REPEAL OF THE HYDE AMENDMENT WHICH PROHIBITS THE USE OF MEDICAID MONEY TO FINANCE ABORTIONS FOR POOR WOMEN UNLESS THERE IS A THREAT TO THE WOMAN'S LIFE ITALY'S PRIME MINISTER EFFECTIVELY OFFERED HIS RESIGNATION TO PRESIDENT SCALFARO AS A CORRUPTION SCANDAL CLAIMED ANOTHER CABINET MEMBER SCALFARO WHO DIDN'T IMMEDIATELY ACCEPT AMATO'S RESIGNATION MET WITH ITALIAN POLITICAL LEADERS TO DISCUSS THE POSSIBILITY OF WIDENING THE CURRENT FOURPARTY COALITION A BOSNIAN MILITARY COURT CONVICTED TWO SERB SOLDIERS OF WAR CRIMES AND SENTENCED THEM TO DEATH BY FIRING SQUAD FOR ATROCITIES THAT INCLUDED SLITTING THE THROATS OF POWS AND RAPING MUSLIM WOMEN THE COMMANDER OF UN PEACEKEEPERS IN BOSNIA SAID HE THOUGHT THE CASE SHOULD BE TURNED OVER TO AN INTERNATIONAL TRIBUNAL DEFENSE SECRETARY ASPIN SAID HE PROBABLY WILL ACCEPT A RECOMMENDATION THAT WOMEN BE ALLOWED TO SERVE ON WARSHIPS AND MAY DECIDE THEY SHOULD BE ALLOWED TO FLY COMBAT PLANES HE SAID THAT A PRESIDENTIAL COMMISSION WHICH RECOMMENDED WOMEN BE PERMITTED ON WARSHIPS BUT NOT IN GROUND COMBAT OR IN WARPLANES DID A GOOD JOB EGYPTIAN LEADER MUBARAK ACCUSED AN ISLAMIC CHARITY GROUP IN THE NEW YORK AREA OF FUNDING ANTIGOVERNMENT VIOLENCE IN EGYPT AT LEAST TWO OF THE FIVE SUSPECTS ARRESTED IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING HAD CLOSE TIES TO THE BROOKLYNBASED ORGANIZATION OFFICIALS HAVE DETERMINED JAMAICAN VOTERS GAVE PRIME MINISTER PJ PATTERSON THE STRONG MANDATE HE SOUGHT ACCORDING TO INCOMPLETE RETURNS FROM PARLIAMENTARY ELECTIONS THAT TOUCHED OFF SCATTERED VIOLENCE YESTERDAY IN KINGSTON PATTERSON'S PARTY WAS HEADING FOR A BIG VICTORY OVER THE PARTY OF EDWARD SEAGA A FORMER PRIME MINISTER MACHINEGUNNERS KILLED TWO ISRAELI TRAFFIC POLICEMEN AS THEY SAT IN THEIR PATROL CAR AND PRIME MINISTER RABIN RESPONDED BY BARRING THE WEST BANK'S ONE MILLION PALESTINIANS FROM ENTERING ISRAEL HE ALSO ORDERED THE ARMY REINFORCED IN THE OCCUPIED TERRITORIES POLICE BLAMED MILITANT ARABS FOR THE SLAYINGS WHICH OCCURRED NEAR HADERA AN APPEALS COURT STRUCK DOWN A BAN ON SPEAKING FEES THAT CONGRESS IMPOSED ON FEDERAL WORKERS SAYING IT WAS AN UNCONSTITUTIONAL INFRINGEMENT ON FREE SPEECH THE COURT CALLED THE PROHIBITION ON OUTSIDE FEES FOR OCCASIONAL SPEECHES OR ARTICLES UNDULY OVERINCLUSIVE BUT LEFT THE BAN INTACT FOR EMPLOYEES OF CONGRESS AND THE JUDICIARY SOLDIERS AND POLICE SEALED OFF A SOUTH AFRICAN HOMELAND TRANSKEI AFTER PRETORIA ANNOUNCED A GETTOUGH CAMPAIGN TO STEM ACTIVITIES BY A BLACK GUERRILLA GROUP SAID TO BE BASED THERE ALL CITIZENS AND VEHICLES WERE TO BE SEARCHED AT ROADBLOCKS AND BORDER PATROLS WERE TO BE INTENSIFIED 9303310086 930331 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9303310085 930331 BUSINESS BRIEFS FREEPORTMCMORAN COPPER & GOLD INC COMPLETED ITS ACQUISITION OF A 65 STAKE IN RIO TINTO MINERA A UNIT OF THE SPANISH COMPANY ERCROS SA FOR ABOUT 50 MILLION KEYCORP SAID SHAREHOLDERS OF HOME FEDERAL SAVINGS BANK FORT COLLINS COLO VOTED IN FAVOR OF AN ACQUISITION BY KEYCORP THE ACQUISITION IS EXPECTED TO BE COMPLETED BY THE END OF THE SECOND QUARTER BURLINGTON NORTHERN INC'S RAILROAD DIVISION ORDERED 720 ALUMINUMBODY COAL CARS FROM JOHNSTOWN AMERICA CORP VALUED AT MORE THAN 25 MILLION SNYDER OIL CORP SAID ONE OF ITS SUBSIDIARIES SIGNED A FIVEYEAR PRODUCTIONSHARING AGREEMENT WITH MONGOLIA TERMS WEREN'T DISCLOSED MICROWAVE RADIO CORP A UNIT OF CALIFORNIA MICROWAVE INC RECEIVED A 13 MILLION ORDER FROM THE US AIR FORCE FOR A NEW LINE OF SATELLITELINKED LIGHTWEIGHT RADIOS RPM INC AGREED IN PRINCIPLE TO ACQUIRE DYNATRON/BONDO CORP A CLOSELY HELD MAKER OF AUTOMOTIVE REPAIR MATERIAL IN ATLANTA TERMS WEREN'T DISCLOSED COLUMBIA HOSPITAL CORP AGREED TO ACQUIRE THE 250BED BEAUMONT MEDICAL SURGICAL HOSPITAL IN BEAUMONT TEXAS FROM GALEN HEALTH CARE INC TERMS WEREN'T DISCLOSED 9303310084 930331 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 DEAN WITTER DISCOVER & CO 350 MILLION OF NOTES DUE APRIL 1 1996 PRICED AS 5 AT 99889 TO YIELD 504 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS & CO DELTA AIR LINES INC 275 MILLION TWOPART ISSUE OF EQUIPMENT PASSTHROUGH CERTIFICATES PRICED THROUGH DEALERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 104 MILLION OF CERTIFICATES WITH A FINAL MATURITY OF APRIL 30 2008 WAS PRICED AT PAR TO YIELD 9875 DUE TO EARLY PRINCIPAL PAYMENTS THE ISSUE HAS AN AVERAGE LIFE OF 10 YEARS THE SECOND PART CONSISTING OF 171 MILLION OF CERTIFICATES WITH A FINAL MATURITY OF APRIL 30 2016 WAS PRICED AT PAR TO YIELD 105 DUE TO EARLY PRINCIPAL PAYMENTS THE ISSUE HAS AN AVERAGE LIFE OF 196 YEARS THE CERTIFICATES ARE RATED BAA2 BY MOODY'S AND DOUBLEBPLUS BY S&P NORWEST FINANCIAL INC 150 MILLION OF SENIOR NOTES DUE APRIL 15 1998 WAS PRICED AS 5 1/2 S AT 9963 TO YIELD 5586 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 38 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NORWEST FINANCIAL IS A UNIT OF NORWEST CORP WORLD SAVINGS & LOAN ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES PRICED AS 485S AT 99975 TO YIELD 4859 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO WORLD SAVINGS & LOAN IS A UNIT OF GOLDEN WEST FINANCIAL CORP ILLINOIS 165 MILLION OF GENERAL OBLIGATION BONDS APPARENTLY WON BY A PRUDENTIAL SECURITIES INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5573 YIELDS RANGE FROM 275 IN 1994 TO 585 IN 2018 MOODY'S RATED THE BONDS DOUBLEA AND S&P ASSIGNED A DOUBLEAMINUS RATING LOS ANGELES 3023 MILLION OF WASTEWATER SYSTEM REFUNDING BONDS APPARENTLY WON BY A MORGAN STANLEY & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 59 YIELDS FOR REOFFERED BONDS RANGE FROM 31 IN 1994 TO 588 IN 2020 AND 2021 BONDS INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP WITH TRIPLEA RATINGS FROM MOODY'S AND S&P LOS ANGELES DEPARTMENT OF WATER & POWER 802 MILLION OF 1993 WATERWORKS REVENUE REFUNDING BONDS APPARENTLY WON BY MANAGING UNDERWRITERS GOLDMAN SACHS & CO WITH A BID SETTING THE TRUE INTEREST COST AT 588 YIELDS FOR THE FORMALLY REOFFERED SET AT 530 IN 2001 TO 5907 IN 2018 BONDS RATED DOUBLEA BY MOODY'S NEW YORK CITY 7665 MILLION OF FISCAL 1993 SERIES D GENERAL OBLIGATION REFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP THE ISSUE INCLUDES 137245 MILLION OF DERIVATIVE SECURITIES AND 629245 MILLION OF FIXEDRATE BONDS YIELDS FOR THE REOFFERED FIXEDRATE BONDS RANGE FROM 325 IN 1994 TO 635 IN 200912 2015 AND 2016 THE BONDS ARE CALLABLE AT 10150 ON AUG 1 2003 AND WILL DECLINE TO PAR ON AUG 1 2005 MOODY'S RATED THE ISSUE BAA1 AND S&P ASSIGNED A SINGLEAMINUS RATING NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY 101 MILLION OF SERIES 1993A FACILITIES REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP THIS OFFERINGWHICH IS SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAXIS FOR CONSOLIDATED EDISON CO OF NEW YORK THE BONDS ARE 600S AT 97375 AND ARE TO YIELD 618 ON MARCH 15 2028 MOODY'S RATED THE ISSUE DOUBLEA2 AND S&P IS EXPECTED TO ASSIGN A DOUBLEAMINUS RATING NORTHEAST MARYLAND WASTE DISPOSAL AUTHORITY 3617 MILLION OF SERIES 1993A AND 1993B SOLID WASTE REVENUE BONDS PRICED BY A LEHMAN BROTHERS GROUP THIS OFFERING WHICH IS FOR THE MONTGOMERY COUNTY RESOURCE RECOVERY PROJECT INCLUDES THE FOLLOWING 32676 MILLION TAXEXEMPT SERIES 1993A BONDS PRICED TO YIELD FROM 53 IN 2000 TO 635 IN 2016 AND SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX AND 3496 MILLION TAXABLE SERIES 1993B BONDS TO YIELD FROM 62 IN 1997 TO 695 IN 2000 BOTH THE SERIES 1993A AND 1993B BONDS HAVE BEEN RATED SINGLEA BY MOODY'S AND FITCH INVESTORS SERVICE INC PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY 825 MILLION OF REVENUE BONDS PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP THE OFFERING WHICH IS BEING REMARKETED IS COMPRISED OF THE FOLLOWING SECURITIES 50 MILLION SERIES 1991A BONDS PRICED TO YIELD FROM 3 IN 1994 TO 59 IN 2010 AND 2011 AND 325 MILLION SERIES 1992A BONDS PRICED TO YIELD FROM 3 IN 1994 TO 59 IN 201012 BOTH THE SERIES 1991A BONDS AND THE SERIES 1992A BONDS HAVE BEEN RATED DOUBLEA BY STANDARD & POOR'S CORP SUFFOLK COUNTY NY WATER AUTHORITY 9559 MILLION OF WATER SYSTEM REFUNDING BONDS APPARENTLY WON BY MANAGING UNDERWRITERS DONALDSON LUFKIN & JENRETTE SECURITIES CORP WITH A BID SETTING THE TRUE INTEREST COST AT 5527 FOR THE SUBORDINATE LIENS AND 5545 FOR THE SENIOR LIENS YIELDS FOR THE FORMALLY REOFFERED SENIOR LIEN BONDS SET AT 225 IN 1994 TO 57 IN 2010 YIELDS FOR THE FORMALLY REOFFERED SUBORDINATE LIEN BONDS SET AT 225 IN 1993 TO 575 IN 2013 THE BONDS ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE AND RATED TRIPLEA BY MOODY'S AND S&P WASHOE COUNTY NEV AIRPORT AUTHORITY 111 MILLION OF BONDS PRICED BY A PAINEWEBBER INC GROUP THIS ISSUE INCLUDES 71 MILLION SERIES 1993A LETTER OF INTENT BONDS FOR AIRPORT IMPROVEMENT WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX THE NONCALLABLE BONDS PRICED TO YIELD FROM 38 IN 1995 TO 56 IN 2003 THE 1993A BONDS MARK THE FIRST TIME A LETTER OF INTENT HAS BEEN 'LEVERAGED' TO FUND AN AIRPORT IMPROVEMENT PROGRAM PAINEWEBBER SAID IN A NEWS RELEASE THE ISSUE ALSO INCLUDES 404 MILLION SERIES 1993B AIRPORT REVENUE REFUNDING BONDS PRICED TO YIELD FROM 300 IN 1994 TO 59 IN 2010 AND 2011 BONDS CALLABLE AT 102 ON JULY 1 2003 DECLINING TO PAR JULY 1 2005 THE ENTIRE OFFERING IS INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P BOMBAY CO ONE MILLION COMMON SHARES OFFERED AT 3875 EACH BY UNDERWRITERS MONTGOMERY SECURITIES WILLIAM BLAIR & CO AND ROBERTSON STEPHENSON & CO GYMBOREE CORP INITIAL 2165000 COMMON SHARES PRICED AT 20 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO INCO HOMES CORP INITIAL 26 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES LEASING SOLUTIONS INC INITIAL ONE MILLION COMMON TREASURY SHARES BEEN PRICED AT 5 EACH NEEDHAM & CO IS THE MANAGING UNDERWRITER MINERALS TECHNOLOGIES INC SECONDARY OFFERING OF 68 MILLION COMMON SHARES PRICED AT 25 EACH THROUGH UNDERWRITERS LED BY LAZARD FRERES & CO THE SHARES WERE OFFERED BY PFIZER INC ORCHARD SUPPLY HARDWARE STORES CORP INITIAL 38 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC REPSOL SA SECONDARY OFFERING OF 145 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 2368 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO EACH DEPOSITARY SHARE REPRESENTS THE RIGHT TO RECEIVE ONE SHARE OF CAPITAL STOCK THE OFFERING WAS PART OF A GLOBAL OFFERING MADE IN SPAIN AND ELSEWHERE OUTSIDE THE US FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY JP MORGAN SECURITIES THE OFFERING SERIES 199364 IS BACKED BY FANNIE MAE 6 SEVENYEAR BALLOON MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMICS OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 199361 IS BACKED BY FANNIE MAE'S 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMICS OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 199363 IS BACKED BY FANNIE MAE 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FUJITSU LTD JAPAN 30 BILLION YEN OF 395 EUROBONDS DUE JULY 23 1997 AT ISSUE PRICE 10155 VIA NIKKO SECURITIES CO EUROPE LTD REOFFERED AT 100175 TO YIELD 39 ANNUALLY PUT OPTION ON JULY 23 1996 AT PAR FEES 1 5/8 INCHCAPE PLC UK 125 MILLION OF 6 1/4 SUBORDINATED CONVERTIBLE EUROBONDS DUE MAY 10 2008 VIA CREDIT SUISSE FIRST BOSTON LTD CONVERTIBLE FROM MAY 26 1993 TO MAY 3 2008 INTO INCHCAPE COMMON SHARES AT 689 PENCE A SHARE AN 18081 PREMIUM ABOVE REFERENCE SHARE PRICE OF 583 PENCE ISSUE AND REOFFER PRICE PAR CALLABLE FROM MAY 30 1998 AT PAR FEES 2 1/2 SANYO ELECTRIC RAILWAY CO JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE APRIL 15 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 7/8 COUPON AT PAR VIA NOMURA BANK SWITZERLAND EACH 50000 FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM APRIL 27 1993 TO APRIL 4 1997 TO BUY COMPANY SHARES TERMS ARE FIXED APRIL 6 FEES 1 5/8 THAI PETROCHEMICAL INDUSTRY CAYMAN ISLANDS 70 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 3 1/2 NOTES DUE APRIL 16 1998 AT PAR VIA CREDIT SUISSE EACH 50000 SWISS FRANC NOTE IS CONVERTIBLE FROM APRIL 29 1993 TO APRIL 3 1998 INTO SHARES OF TPI POLENE CO AT A 5 PREMIUM OVER THE CLOSING SHARE PRICE APRIL 1 WHEN TERMS ARE FIXED FEES 1 3/4 TREASURY CORP OF VICTORIA AUSTRALIA 500 MILLION AUSTRALIAN DOLLARS OF 8 1/4 GLOBAL BONDS DUE OCT 15 2003 VIA LEAD UNDERWRITER MERRILL LYNCH INTERNATIONAL LTD BONDS PAY 8 1/4 SEMIANNUALLY REOFFERED AT 99241 TO YIELD 836 A 60 BASISPOINT MARGIN ABOVE COMPARABLE AUSTRALIAN GOVERNMENT BOND GUARANTOR STATE OF VICTORIA FEES 1/2 UNIBANCOUNIAO DE BANCOS BRASILEIROS SA GRAND CAYMAN BRANCH BRAZIL 60 MILLION OF 9 3/4 SEMIANNUAL EUROBONDS DUE OCT 13 1995 VIA CITIBANK INTERNATIONAL PLC REOFFERED AT 99275 TO YIELD 10085 SEMIANNUAL FEES 1 1/8 9303310083 930331 SONY TO REORGANIZE US CONSUMER UNIT IN BID TO SPUR SALES BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SONY CORP SAID IT WILL REORGANIZE ITS US CONSUMER ELECTRONICS BUSINESS IN AN EFFORT TO SUSTAIN SALES GROWTH AT A TIME OF LARGELY FLAT SALES THE REORGANIZATION WHICH WILL COMBINE THREE OPERATING UNITS INTO TWO SHOULD HELP SONY AS IT ATTEMPTS TO CREATE AND SELL ELECTRONIC DEVICES AND RECORDING MEDIA THAT HAVE APPLICATIONS IN BOTH CONSUMER AND INDUSTRIAL OR CORPORATE ENVIRONMENTS NEW DIGITAL TECHNOLOGIES SUCH AS CDROM COMPACT DISKREAD ONLY MEMORY AND MINIDISC SONY'S OWN RECORDABLE COMPACT DISK HAVE LARGE POTENTIAL APPLICATIONS IN ALL MARKETS THIS HELPS THE DEVELOPMENT OF DIGITAL TECHNOLOGIES THAT CROSS THE LINES BETWEEN ENTERTAINMENT AND INFORMATION AND COMMUNICATION A SONY SPOKESMAN SAID THE REALIGNMENT FOLLOWS THE ANNOUNCEMENT IN FEBRUARY THAT SONY WOULD MOVE SONY CORP OF AMERICA PRESIDENT RON SOMMER TO EUROPE TO RUN THE ELECTRONICS GIANT'S TROUBLED HARDWARE SALES AND MARKETING OPERATIONS THERE YESTERDAY'S ANNOUNCEMENT ALSO APPEARS TO END SPECULATION THAT SONY WOULD UNITE UNDER ONE UMBRELLA ITS VAST US ELECTRONICS AND ENTERTAINMENT OPERATIONS SUCH AS RECORD AND FILM COMPANIES WHICH ARE NOW RUN AS SEPARATE ENTITIES UNDER THE REORGANIZATION SONY'S SALES MARKETING MANUFACTURING AND RESEARCH AND DEVELOPMENT WILL BE OVERSEEN BY PARK RIDGE NJBASED SONY CORP OF AMERICA EFFECTIVE TOMORROW PREVIOUSLY SONY'S US ELECTRONICS BUSINESSES WERE MANAGED BY THREE SONY CORP US ENTITIES INCLUDING SONY CORP OF AMERICA UNDER THE NEW ARRANGEMENT SONY SALES AND MARKETING OF AMERICA WILL BE RESPONSIBLE FOR SALES AND MARKETING ACROSS ALL CONSUMER AND PROFESSIONAL PRODUCT LINES INCLUDING RECORDING MEDIA THE UNIT WILL BE HEADED BY SONY CORP'S EXECUTIVE DEPUTY PRESIDENT KEN IWAKI WHO WILL CONTINUE AS SONY CORP OF AMERICA CHAIRMAN AND CHIEF EXECUTIVE HE WILL BE THE UNIT'S ACTING PRESIDENT JOHN BRIESCH PRESIDENT OF SONY'S CONSUMER PRODUCTS GROUP WILL ALSO SERVE AS DEPUTY PRESIDENT OF SONY SALES AND MARKETING ANOTHER UNIT SONY ENGINEERING AND MANUFACTURING OF AMERICA WILL INCLUDE ALL NORTH AMERICAN MANUFACTURING FACILITIES IN EIGHT LOCATIONS FOR CONSUMER TELEVISIONS COMPUTER EQUIPMENT PROFESSIONAL AUDIO AND VIDEO EQUIPMENT CONSUMER LOUDSPEAKERS SEMICONDUCTORS AND RECORDING MEDIA THE COMPANY ALSO SELLS FACTORY AUTOMATION EQUIPMENT AND HAS 12 US RESEARCH AND DEVELOPMENT OPERATIONS THE UNIT'S PRESIDENT AND CHIEF OPERATING OFFICER WILL REMAIN KUNI ANDO WHO WILL REPORT TO MR IWAKI IN THE ALIGNMENT SONY CORP OF AMERICA NAMED AKI NAKAMURA A SONY EXECUTIVE VICE PRESIDENT TO THE NEW POST OF CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER OVERSEEING SOME OF THE DUTIES THAT ONCE BELONGED TO MR SOMMER SONY SAID ITS US ELECTRONICS BUSINESS WOULD POST DOUBLEDIGIT SALES GROWTH FOR THE NINTH CONSECUTIVE YEAR IN THE FISCAL YEAR ENDING TODAY SONY'S MR IWAKI SAID THE GROUP IS EXPECTED TO HAVE SUSTAINED ITS PROFITABILITY IN THE FISCAL YEAR DESPITE THE SLOW ECONOMIC RECOVERY IN THE US AND A RELATIVELY FLAT CONSUMER ELECTRONICS INDUSTRY 9303310082 930331 CLINTON STEPS UP PACE OF NAMING PERSONNEL TO DEFENSE AGENCY WASHINGTON PRESIDENT CLINTON PICKED UP THE PACE OF FILLING DEFENSE DEPARTMENT POSITIONS BY NAMING EDWARD WARNER TO BE ASSISTANT SECRETARY FOR STRATEGY AND RESOURCES AND CHARLES FREEMAN TO BE ASSISTANT SECRETARY FOR REGIONAL SECURITY MR WARNER A 20YEAR AIR FORCE VETERAN HAS BEEN RAND CORP'S SENIOR DEFENSE ANALYST SINCE 1982 WHILE MR FREEMAN A CAREER EMPLOYEE IN THE FOREIGN SERVICE IS A DISTINGUISHED VISITING FELLOW AT THE NATIONAL INSTITUTE FOR STRATEGIC STUDIES THE MANY VACANCIES IN THE PENTAGON HAVE DRAWN CRITICISM INSIDE AND OUTSIDE THE AGENCY AND THE ISSUE WAS BROUGHT UP YESTERDAY DURING DEFENSE SECRETARY LES ASPIN'S APPEARANCE BEFORE THE HOUSE ARMED SERVICES COMMITTEE IN OTHER PERSONNEL MOVES THE PRESIDENT CHOSE DAVID LONGANECKER WHO HAS BEEN EXECUTIVE DIRECTOR OF THE COLORADO COMMISSION ON HIGHER EDUCATION TO BE ASSISTANT EDUCATION SECRETARY FOR POSTSECONDARY EDUCATION AND SHARON PORTER ROBINSON THE DIRECTOR OF THE NATIONAL CENTER FOR INNOVATION AT THE NATIONAL EDUCATION ASSOCIATION TO BE ASSISTANT SECRETARY FOR EDUCATIONAL RESEARCH AND IMPROVEMENT THE PRESIDENT ALSO NAMED CORPORATE ATTORNEY RUTH HARKIN THE WIFE OF IOWA SEN TOM HARKIN AS PRESIDENT OF THE OVERSEAS PRIVATE INVESTMENT CORP 9303310081 930331 LEISURE & ARTS ART CRIME UPDATE DEBUNKING DR NO BY CONSTANCE LOWENTHAL AS THE THIRD ANNIVERSARY OF THE MOST VALUABLE ART THEFT ON RECORD CAME AND WENT MANY QUESTIONS STILL REMAINED ABOUT THE AUDACIOUS HEIST AT BOSTON'S ISABELLA STEWART GARDNER MUSEUM ON MARCH 18 1990 WHO WERE THE TWO MEN IN POLICE UNIFORMS WHO TALKED THEIR WAY IN AT THE BACK ENTRANCE SAYING THEY WERE INVESTIGATING A NEIGHBORHOOD DISTURBANCE ON THE NIGHT OF ST PATRICK'S DAY WHY DID THEY STEAL PRICELESS PICTURES BY REMBRANDT VERMEER MANET AND DEGAS THAT ARE TOO FAMOUS TO SELL NO DEMAND FOR RANSOM POLITICAL OR MONETARY HAS BEEN REPORTED AND OF COURSE THE ART HAS NOT BEEN RECOVERED THE FBI CONTINUES TO ASSIGN THE CASE THE HIGHEST PRIORITY THE BUREAU'S AGENTS HAVE REPORTEDLY QUESTIONED MANY POSSIBLE SUSPECTS AND THOUSANDS OF LEADS HAVE YET TO YIELD THE DESIRED RESULT THE ATTENTION PAID IS ENTIRELY SUITABLE THE LOSS OF GREAT WORKS OF ART FROM A PUBLIC INSTITUTION DIMINISHES OUR ABILITY TO ENJOY AND ALSO TO LEARN REPORTING THE THEFT THE HARVARD CRIMSON HEADLINE NOTED THAT CORE COURSE PAINTINGS HAD BEEN AMONG THOSE STOLEN THE GARDNER MUSEUM A PEACEFUL EVEN SACRED OASIS FOR CONTEMPLATION OF THE FINEST REMAINS OF A SHARED VISUAL INHERITANCE WAS FOREVER CHANGED WHILE THE KNOWLEDGE OF THE VULNERABILITY OF OUR PUBLIC TREASURES IS AN ABIDING SADNESS IT IS WELL TO RECALL THAT PAST RECOVERIES OF STOLEN MASTERPIECES HAVE TAKEN YEARS THE IMPRESSIONIST PICTURES INCLUDING MONET'S IMPRESSION SUNRISE SEIZED AT GUNPOINT FROM THE MUSEE MARMOTTAN IN PARIS IN 1985 WERE RECOVERED IN CORSICA ONLY AFTER FIVE YEARS THE FRENCH POLICE HAVE RELEASED LITTLE INFORMATION ABOUT THE THIEVES A TINY PAINTING BY PIETER BRUEGHEL THE ELDER TAKEN FROM THE COURTAULD INSTITUTE'S OLD GALLERIES IN LONDON WAS RECOVERED AFTER EIGHT YEARS SOME 145 MAYAN AND MIXTEC TREASURES FILCHED FROM THE NATIONAL MUSEUM OF ANTHROPOLOGY IN MEXICO CITY ON CHRISTMAS NIGHT 1985 WERE RETURNED FOUR YEARS LATER THEY WERE STOLEN APPARENTLY ON A LARK OR A DARE BY TWO YOUNG MEXICANS COLLEGE DROPOUTS WHO TURNED TO DRUGS AND WERE FOUND OUT AFTER THEY SOLD A FEW OF THE ARTIFACTS REPORTEDLY TO FINANCE THEIR COCAINE HABITS THE GARDNER THEFT IS NOT THE ONLY REMAINING UNSOLVED MAJOR ART THEFT A SPECTACULAR 1986 THEFT AT THE IRISH COUNTRY HOUSE OF SIR ALFRED BEIT HAS SEEN A PARTIAL AND PIECEMEAL RECOVERY A GABRIEL METSU TURNED UP IN TURKEY AND A SMALL GAINSBOROUGH WAS FOUND LAST YEAR ON A TRUCK IN LONDON EARLIER THIS MONTH AUTHORITIES FOUND ONE PAINTING IN A LUGGAGE LOCKER IN LONDON'S EUSTON STATION AND A RUBENS PORTRAIT A DOMINICAN MONK IN A RAID ON A HOME IN HERTFORDSHIRE BUT THE BEIT COLLECTION AND THE GARDNER STILL SHARE THE PAINFUL DISTINCTION OF HAVING LOST PAINTINGS BY VERMEER WHOSE TOTAL OEUVRE NUMBERS FEWER THAN 40 WORKS VERMEER IS THE QUINTESSENTIAL UNSALABLE ARTIST HIS ONLY PICTURE REMAINING IN PRIVATE HANDS BELONGS TO QUEEN ELIZABETH II HIS ART IS ADMIRED BY THE CASUAL VIEWER AND CONNOISSEUR ALIKE BUT NO VERMEERS ARE AVAILABLE TO PURCHASE THIS AND THE KNOWLEDGE THAT RARITY CAN INSPIRE COVETOUS SPASMS IN ART COLLECTORS LEADS MANY TO SUSPECT A COMMISSIONED THEFT ORDERED BY A SHADOWY RECLUSIVE AMORAL PERSON WITH A PERVERTED SENSE OF AESTHETICS FOR SHORT WE CAN CALL HIM OR HER DR NO WITH A NOD TO THE EPONYMOUS FILM IN WHICH THE VILLAIN'S LAIR DISPLAYED A GOYA PORTRAIT OF THE DUKE OF WELLINGTON THAT PICTURE WAS ONCE NOTORIOUSLY STOLEN FROM LONDON'S NATIONAL GALLERY THE THIEF WANTED MEDIA ATTENTION FOR THE PLIGHT OF OLD AGE PENSIONERS AND THE GOYA WAS RECOVERED RELATIVELY QUICKLY WHILE THE DR NO THEORY PROVIDES AN EASY EXPLANATION THERE IS LITTLE EVIDENCE TO SUPPORT IT THE COMMISSIONED THEFT SCENARIO HAS BEEN DOCUMENTED ONLY ONCE THE 1983 THEFT OF OLD MASTERS FROM THE MUSEUM OF FINE ARTS IN BUDAPEST THE CAPTURED THIEVES CLAIMED THAT A GREEK OLIVE OIL TYCOON HAD HIRED THEM TO STEAL THE PICTURES HOWEVER THERE WAS INSUFFICIENT EVIDENCE TO PURSUE THE MAN AFTER THE PAINTINGS WERE RECOVERED VICTIMS OF ART THEFTS MUST BE PATIENT AND HOPE THAT DEDICATED POLICE WORK REWARD MONEY AND THE COOPERATION OF THE ART TRADE WILL EVENTUALLY BRING THEIR WORKS HOME MAJOR WORKS OF ART HAVE A BETTER RECOVERY RATE THAN LESSDISTINCTIVE ONES BUT ARE LESS LIKELY TO SURFACE IN THE LEGITIMATE MARKET ONE RECENT VICTIM IS THE SEVENTH MARQUESS OF CHOLMONDELEY ENGLAND'S LORD HIGH CHAMBERLAIN WHOSE NORFOLK HOME HOUGHTON HALL SUFFERED A BREAKIN AROUND 330 AM LAST SEPT 30 THREE LARGE 18THCENTURY PAINTINGS WERE TAKEN PORTRAIT OF AN UNKNOWN FAMILY BY THE LITTLEKNOWN HUGH BARRON STANDING BY A TREE BY JOHANN ZOFFANY AN ARTIST MUCH IN FAVOR WITH COLLECTORS AND WITH ONE ART DEALER WHO NAMED A THOROUGHBRED AFTER HIM AND A MAGNIFICENTLY AUSTERE PALE AND REFINED STILL LIFE THE WHITE DUCK BY JEANBAPTISTE OUDRY THE MARQUESS'S COLLECTION HAD RECENTLY BEEN IN THE NEWS WHEN HE SOLD THE FAMILY HOLBEIN LADY WITH A SQUIRREL AND A STARLING TO THE NATIONAL GALLERY THROUGH CHRISTIE'S MS LOWENTHAL IS EXECUTIVE DIRECTOR OF THE INTERNATIONAL FOUNDATION FOR ART RESEARCH IFAR 9303310080 930331 INTERNATIONAL US JAPAN PUT OFF TALKS ON CONSTRUCTION MARKET TOKYO WASHINGTON AND TOKYO POSTPONED TALKS ON FOREIGN ACCESS TO JAPAN'S CONSTRUCTION MARKET SAYING DIFFERENCES APPEARED TOO WIDE FOR USEFUL TALKS THIS WEEK THE DISCUSSIONS FOURTH IN A SERIES HAD BEEN SCHEDULED FOR TOMORROW AND FRIDAY IN WASHINGTON NO NEW DATES HAVE BEEN SET WE DISCOVERED WE ARE STILL TOO FAR APART TO REACH AGREEMENT IN TWO DAYS SAID A US EMBASSY OFFICIAL IN TOKYO COMPROMISE PLANS SUBMITTED BY JAPAN WERE INSUFFICIENT TO MAKE JAPANESE STANDARDS AND BIDDING PROCEDURES MORE UNDERSTANDABLE FOR FOREIGNERS HE SAID THE US AND JAPAN AGREED IN 1988 TO GIVE US COMPANIES GREATER ACCESS TO JAPANESE CONSTRUCTION PROJECTS THE LATEST POSTPONEMENT FOLLOWED RECENT INVESTIGATIONS INTO SUSPECTED PAYOFFS BY MAJOR JAPANESE CONSTRUCTION COMPANIES TO SHIN KANEMARU ONCE ONE OF THE GOVERNING PARTY'S MOST INFLUENTIAL POLITICIANS ALLEGEDLY TO SECURE PUBLICWORKS CONTRACTS THE ECONOMIC DAILY NIHON KEIZAI SHIMBUN SAID US NEGOTIATORS WERE BELIEVED TO BE WAITING FOR FURTHER DEVELOPMENTS IN THE SCANDAL HOPING TO USE THEM TO APPLY MORE PRESSURE ON JAPAN TO OPEN ITS CONSTRUCTION MARKET WIDER 9303310079 930331 ABREAST OF THE MARKET STOCKS ADVANCE 217 AS LATE SURGE BY DRUG SECTOR LEADS A RECOVERY BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A LATE SURGE IN DRUG STOCKS SNAPPED THE STOCK MARKET OUT OF A DAYLONG FUNK BUT PRICES OVERALL WERE ONLY MODESTLY HIGHER DISAPPOINTING ECONOMIC NEWS AND WEAKNESS IN LONGTERM TREASURY BONDS HAD STIFLED THE MARKET MOST OF THE DAY DURING ONE WAVE OF SELLING THE DOW JONES INDUSTRIAL AVERAGE WAS DOWN ABOUT 20 POINTS BUT REPORTS ON COMMENTS LATE IN THE DAY BY IRA MAGAZINER A TOP HEALTHCARE ADVISER TO PRESIDENT CLINTON SET OFF EXPLOSIVE BUYING IN DRUG AND OTHER MEDICAL STOCKS THE DOW JONES INDUSTRIAL AVERAGE FINISHED WITH A GAIN OF 217 TO 345727 SHARP LOSSES IN SEVERAL ISSUES KEPT THE INDEX FROM MATCHING THE LARGER GAINS POSTED BY SOME BROADBASED INDEXES THE STANDARD & POOR'S 500STOCK INDEX ADDED 120 TO 45197 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 070 TO 24918 THE DOW JONES EQUITY MARKET INDEX GAINED 126 TO 42907 VOLUME ON THE BIG BOARD ROSE TO 230330000 SHARES FROM 199890000 SHARES MONDAY ADVANCING ISSUES OUTPACED DECLINERS 1025 TO 855 MERCK & CO JUMPED 1 3/8 TO 35 7/8 JOHNSON & JOHNSON SURGED 2 TO 42 PFIZER SOARED 2 7/8 TO 62 7/8 US SURGICAL LEAPED 4 1/8 TO 56 1/2 AND BRISTOLMYERS SQUIBB ADDED 1 1/2 TO 59 3/4 MR MAGAZINER SAID IN REMARKS TO REPORTERS AFTER HE ADDRESSED THE AMERICAN BUSINESS CONFERENCE THAT PRICE CONTROLS WERE UNPLEASANT POLICIES AND FRAUGHT WITH DIFFICULTIES AND HE SUGGESTED THAT THE NIXONERA WAGE AND PRICE CONTROLS WEREN'T EFFECTIVE SOME INTERPRETED THOSE REMARKS AS SUGGESTING THAT THE CLINTON ADMINISTRATION IS TURNING AWAY FROM THE IDEA OF IMPOSING PRICE CONTROLS ON MEDICAL PRICES BUT WHILE MR MAGAZINER EXPRESSED DISTASTE FOR GOVERNMENT PRICE CONTROLS HE ALSO SAID ALLOWING HEALTH COSTS TO CONTINUE TO GROW AT 11 A YEAR ISN'T A VERY PLEASANT ALTERNATIVE EITHER HE SAID NO DECISION HAD BEEN MADE ABOUT IMPOSING PRICE CONTROLS MEDICALRELATED STOCKS HAVE BEEN BATTERED SINCE WORK BEGAN EARLY THIS YEAR ON THE PRESIDENT'S EFFORTS TO REFORM THE NATION'S HEALTHCARE SYSTEM INVESTORS HAVE FEARED THAT ADMINISTRATION INITIATIVES WILL DEPRESS PROFITS IN THE INDUSTRY WHILE MR MAGAZINER'S COMMENTS WERE FAR FROM DEFINITIVE THEY ALLAYED SOME OF THOSE FEARS OBSERVERS SAID MEDICALSTOCK PRICES SHOULD CONTINUE TO RISE TODAY INVESTORS HAVE BEEN BRACING FOR THE WORST AND SHARE PRICES HAVE BEEN PUSHED DOWN TO LEVELS TO REFLECT THOSE EXPECTATIONS BUT A WEAKERTHANEXPECTED REPORT ON CONSUMER CONFIDENCE CONTINUED TO WORRY INVESTORS TRADERS SAID THE CONFERENCE BOARD A BUSINESS GROUP SAID ITS CONSUMER CONFIDENCE INDEX SLUMPED TO 626 POINTS THIS MONTH FROM 685 IN FEBRUARY ANALYSTS HAD FORECAST A READING OF 67 PRICES HIT THEIR LOWS AFTER LYNCH JONES & RYAN'S JOHNSON REDBOOK AFFILIATE RELEASED DATA SHOWING THAT RETAIL SALES FELL 08 IN THE FIRST FOUR WEEKS OF MARCH OBSERVERS SAID THE REPORT MIGHT HAVE CONTRIBUTED TO THE SELLOFF INTERNATIONAL BUSINESS MACHINES ENDED THE SESSION 1 3/4 LOWER AT 50 EASTMAN KODAK DROPPED 1 TO 53 1/2 AND ALUMINUM CO OF AMERICA DECLINED 2 1/8 TO 65 3/4 JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SAID HE WASN'T TROUBLED BY THE ECONOMIC NEWS EVEN THOUGH CONSUMER CONFIDENCE IS SLUGGISH HE STILL EXPECTS GAINS IN CONSUMER SPENDING AIDED BY THE HIGH LEVELS OF MORTGAGE REFINANCING MEANWHILE HE SAID THE RETAILING FIGURES ARE MEANINGLESS BECAUSE BAD WEATHER IS STILL HAVING AN IMPACT ON THE NUMBERS IBM SLID ON WORRIES THAT THE COMPUTER GIANT WOULD TRIM ITS DIVIDEND AT A BOARD MEETING YESTERDAY THE COMPANY SLICED ITS PAYOUT 55 IN JANUARY IBM DIDN'T COMMENT ON ITS DIVIDEND PLANS BUT ANALYSTS DOWNPLAYED THE POSSIBILITY OF AN IMMEDIATE MOVE FISHERPRICE DROPPED 3 1/8 TO 20 3/8 AFTER THE COMPANY PREDICTED IT WILL HAVE A FIRSTQUARTER LOSS CONTRARY TO MARKET EXPECTATIONS THAT THE COMPANY WOULD POST A PROFIT OF BETWEEN 10 CENTS TO 15 CENTS A SHARE FOR THE PERIOD ENDING APRIL 4 THE EAST AURORA NY TOY MAKER BLAMED THE EXPECTED DECLINE ON RETAILERS' EFFORTS TO REDUCE THEIR INVENTORIES A YEAR EARLIER FISHERPRICE HAD NET INCOME OF 22 CENTS A SHARE VF CORP SLIPPED 1 7/8 TO 52 HEAVY VOLUME OF 17 MILLION SHARES INCLUDED A 12 MILLION SHARE BLOCK A SPOKESMAN FOR THE WYOMISSING PA MAKER OF JEANS AND OTHER APPAREL SAID THERE WAS NO NEWS TO ACCOUNT FOR THE SLIDE HE CALLED THE BLOCK TRADE AN ORDINARY SALE OF STOCK NEITHER THE BUYER NOR THE SELLER WERE IDENTIFIED A JUMP IN GOLD PRICES HELPED LIFT PRECIOUS METALS STOCKS HOMESTAKE MINING ROSE 1 1/4 TO 14 3/8 AMERICAN BARRICK ADVANCED 1/2 TO 17 1/4 BATTLE MOUNTAIN GOLD ADDED 3/8 TO 7 AND HECLA MINING CLIMBED 1 1/4 TO 10 1/4 CIRCUS CIRCUS FELL 1 TO 48 A MANAGEMENT SHAKEUP AT THE LAS VEGAS HOTEL AND CASINO COMPANY CONTINUED WITH THE RESIGNATION OF ITS OPERATIONS CHIEF JAMES W MUIR JUST SIX WEEKS AGO THE COMPANY'S PRESIDENT DEPARTED AFTER A CLASH WITH CHAIRMAN WILLIAM G BENNETT 9303310078 930331 RETAILING CLOTHING TV SHOPPING MAY BE TOUGH FIT BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL BEDAZZLED AS THEY ARE BY CABLE TELEVISION'S HOMESHOPPING NETWORKS SEVENTH AVENUE APPAREL MANUFACTURERS HARDLY HAVE STARS IN THEIR EYES WITH HOME SHOPPING NETWORK INC QVC NETWORK INC AND QVC'S FASHION CHANNEL NETWORK FAST ACQUIRING SPIFFIER FASHION PATINAS THE PROSPECT OF A VAST UNTAPPED OUTLET FOR TOPLABEL MERCHANDISE HAS THE ENTIRE APPAREL INDUSTRY AFLUTTER YET VISIONS OF SPECTACULAR ELECTRONIC SELLING SPREES ARE ONLY PART OF THE PICTURE AND MOST APPAREL MARKETERS KNOW IT POTENTIAL PITFALLS ABOUND AND REWARDS ARE AS YET UNPROVEN THERE'S A SCIENCE TO SELLING CLOTHES ON TV AND IT'S DIFFERENT FROM STORE OR CATALOG MERCHANDISING RETAILERS AND MANUFACTURERS MUST BE ABLE TO CARVE OUT A TV NICHE WITHOUT CANNIBALIZING STORE SALES OR CHEAPENING THEIR IMAGE WITH CUSTOMERS JC PENNEY & CO LEARNED THIS THE HARD WAY IN 1989 THE GIANT DALLASBASED RETAILER LAUNCHED ITS OWN HOMESHOPPING NETWORK TO PEDDLE APPAREL AND HOUSEWARES IN 725 MARKETS IT WAS FOLDED AFTER 18 MONTHS BECAUSE A PENNEY'S SPOKESMAN SAYS THE SALES WERE JUST NOT THERE PENNEY'S TIMING MAY HAVE BEEN OFF BUT DOUBTS PERSIST RETAIL CONSULTANT ALAN MILLSTEIN SAYS THAT TV SHOPPING SHOWS HAVE YET TO OVERCOME THEIR FLEAMARKET AMBIANCE FOSTERED BY BREATHLESS PRICESLASHING AND WARNINGS THAT BARGAINS WILL SLIP AWAY IF VIEWERS DON'T SNAP THEM UP FOR APPAREL MAKERS THE GREAT DANGER IS THE TEMPTATION TO CHEAT TO PUT OUT AN INFERIOR PRODUCT IN ORDER TO MEET THE PRICE WARNS GEORGE ROSENBAUM CHIEF EXECUTIVE OFFICER OF LEO J SHAPIRO ASSOCIATES A CHICAGOBASED MARKET RESEARCH FIRM BRANDED GOODS THAT DON'T MEASURE UP HE SAYS WILL CREATE LOTS OF RETURNS AND DAMAGE A BRAND'S REPUTATION IN THE PAST YEAR THE SHOPPING NETWORKS WHICH BUY GOODS AT WHOLESALE LIKE TRADITIONAL STORES HAVE MANAGED TO WIN OVER SOME OF THE MOST POPULAR LABELS IN WOMEN'S CAREER APPAREL INCLUDING ADOLFO II HARVE BENARD KENAR AND REGINA PORTER AFTER SIX APPEARANCES ON THE FASHION CHANNEL KENAR LTD A NEW YORK WOMEN'S APPAREL VENDOR IS UPBEAT WE'VE BEEN ABLE TO SELL REAL FASHION SAYS KENNETH ZIMMERMAN THE COMPANY'S CHAIRMAN CONSTRUCTED BLAZERS FOR 158 CHIFFON BLOUSES FOR 60 THINGS WE NEVER THOUGHT COULD BE SOLD ON TV YET MR ZIMMERMAN ALSO SEES THE DOWNSIDE I SELL TO SOME VERY FINE STORES IN THE US HE SAYS AND I DON'T WANT TO GAIN QVC AND LOSE NORDSTROM RETAIL STORES WHILE STRESSING THAT COMPETITION FROM TV HASN'T YET DENTED BUSINESS AREN'T EAGER TO SEE THE TREND SNOWBALL IF SOME OF OUR KEY VENDORS TAKE TO ELECTRONIC MARKETING WE'D HAVE A PROBLEM WITH THAT SAYS PHILIP MILLER VICE CHAIRMAN OF SAKS FIFTH AVENUE IN A VENTURE THAT MAY PORTEND THE ENTRY OF OTHER BIG RETAILERS INTO THE HOMESHOPPING MEDIUM SAKS WILL ITSELF TEST THE TV WATERS WITH A ONEHOUR SALE OF WOMEN'S PRIVATELABEL SPORTSWEAR ON QVC IN JUNE IN ITS FIRST FORAY INTO TV SAKS EXPECTS TO RACK UP 400000 IN SALES SAKS'S EXPERIMENT WHICH MR MILLER TERMS A HANDSHAKE AGREEMENT WITH QVC TO DO THREE OR FOUR PROGRAMS THIS YEAR IS SEEN AS A PREEMPTIVE STRIKE AMID SPECULATION IN THE INDUSTRY THAT HOMESHOPPING SHOWS COULD BECOME THE BRANCH STORES OF THE FUTURE OTHER BIG RETAILERS CONSIDERING HOME SHOPPING INCLUDE BLOOMINGDALE'S AND RH MACY & CO LENDING EVEN MORE LEGITIMACY TO HOME SHOPPING WAS THE ARRIVAL OF FORMER FOX INC CHAIRMAN BARRY DILLER WHO RECENTLY BECAME CHIEF EXECUTIVE OF QVC IN RETURN FOR A 25 MILLION INVESTMENT MR DILLER HAS SET ABOUT UPGRADING QVC'S IMAGE AND MERCHANDISE PERSONALLY WOOING BIG RETAILERS APPAREL AND CONSUMER PRODUCTS MANUFACTURERS BY INVITING THEM TO TOUR QVC'S IMPRESSIVE WEST CHESTER PA ORDERTAKING AND FULFILLMENT FACILITIES AND MR DILLER IS PLANNING A SECOND UPSCALE CHANNEL THAT WILL SELL LIFESTYLE HEALTH AND ENTERTAINMENT PRODUCTS UP TO NOW CLOTHES HAVE BEEN A HARD SELL ON HOMESHOPPING NETWORKS ARMCHAIR SHOPPERS WHO THINK NOTHING OF PHONING IN ORDERS FOR 50 DRILLS OR 80 SETS OF CHINA TEND TO CLUTCH WHEN IT COMES TO SUITS AND DRESSES HOME SHOPPING NETWORK BASED IN CLEARWATER FLA SAYS APPAREL ACCOUNTS FOR ONLY ABOUT 160 MILLION OF ITS 1 BILLION IN ANNUAL SALES ABOUT 20 OF THE 11 BILLION COMBINED ANNUAL SALES OF QVC AND THE FASHION CHANNEL COMES FROM CLOTHES AND COSMETICS BUT HOME SHOPPING NETWORK REACHES 28 MILLION CABLE HOMES AND IS CARRIED ON BROADCAST CHANNELS IN SOME MARKETS QVC BASED IN WEST CHESTER PA REACHES 44 MILLION CABLE HOMES AND THE FASHION CHANNEL GOES TO SEVEN MILLION APPAREL MARKETERS EAGER TO REACH THIS VAST MARKET ARE LEARNING THE TRICKS OF THE TRADE AS THEY GO LIKE STORES QVC AND HOME SHOPPING NETWORK EMPLOY BUYERS WHO SHOP THE WHOLESALE MARKET FOR TELEGENIC GOODS BECAUSE HOME TV SHOPPERS CAN'T TRY ON MERCHANDISE STYLES AND COLORS MUST HAVE INSTANT IMPACT THEY SAY BOLD COLORS AND BLACK SELL WELL SUBTLE TONES DON'T NOR DO PRINTS OR PLAIDS WHICH APPEAR TO JIGGLE ON TV BUYERS FOR THE HOMESHOPPING SHOWS ALSO REQUIRE MANUFACTURERS TO ADHERE TO RIGID SIZE SPECIFICATIONS THAT ARE SOMEWHAT LARGER THAN USUAL SKIRTS AND PANTS WITH ELASTIC WAISTS AND LOOSELY CUT JACKETS SELL BETTER THAN FITTED STYLES EVEN SO GOODS SOLD ON TV HAVE A FAIRLY HIGH RATE OF RETURN ABOUT 20 OR SLIGHTLY HIGHER THAN MAILORDER CATALOGS MERCHANDISE ORDERED ON TV IS FULLY REFUNDABLE BUT CUSTOMERS ARE STILL STUCK WITH HANDLING CHARGES THAT AVERAGE 5 AN ITEM APPAREL MARKETERS PLANNING A LEAP TO TV MAY NEED THEIR OWN CELEBRITY PITCHMEN FOR NOW SAKS IS DEVELOPING ITS TALENT INHOUSE GROOMING ANNE KEENES A SENIOR VICE PRESIDENT QVC LIKED MY BRITISH ACCENT SAYS MS KEENES WHO IS ALSO A PRETTY REDHEAD SOME OF THE BESTSELLING CLOTHES ON THE HOMESHOPPING SHOWS ARE LINES PROMOTED BY CELEBRITIES LIKE ACTRESS CONNIE STEVENS AND GAMESHOW HOSTESS VANNA WHITE IN MAY IVANA TRUMP WILL PITCH HER NEW COLLECTION OF CLOTHES AND JEWELRY ON HOME SHOPPING NETWORK ALTHOUGH SHOPPINGSHOW HOSTS POINT OUT SUCH DETAILS AS HANDFINISHED BUTTONHOLES THE NUANCES ARE OFTEN LOST ON VIEWERS JUST BECAUSE A BRAND SELLS WELL IN A DEPARTMENT STORE DOESN'T MEAN IT WILL DO WELL ON TV SAYS TOM CAGLEY VICE PRESIDENT OF PURCHASING FOR HOME SHOPPING NETWORK THIS WORRIES JON LEVY OWNER OF GILLIAN GROUP LTD WHICH MAKES WOMEN'S APPAREL THAT RETAILS IN THE 200TO400 RANGE A LOT OF SUBTLE DESIGNER DETAILS THAT JUSTIFY THE PRICES AREN'T REALLY EVIDENT UNTIL YOU TRY A GARMENT ON HE SAYS SELLING ON TV CAN ALSO MEAN THINNER PROFIT MARGINS FOR MANUFACTURERS TV BUYERS DEMAND WHOLESALE PRICES AS MUCH AS 50 BELOW WHAT STORES PAY MR CAGLEY SAYS LOWER PRICES ARE NECESSARY BECAUSE VIEWERS HAVE TO PAY SHIPPING AND HANDLING FEES ON TOP OF A GARMENT'S COST IN PRACTICE MOST HIGHEND APPAREL MAKERS FIND THEY MUST MODIFY STYLES OR CREATE SEPARATE LINES EXPRESSLY FOR THE SHOPPING SHOWS AND RETOOLING PRODUCTION FOR THE TV MARKET DAUNTS SMALLER MANUFACTURERS CHARLES SCHWARTZ OWNER OF CATTIVA INC A NEW YORK MAKER OF COCKTAIL DRESSES THAT RETAIL FOR 300 AND UP SAYS THAT TO SELL PROFITABLY ON TV HE WOULD HAVE TO USE CHEAPER LABOR AND FABRIC AND OFFER FEWER DESIGN DETAILS NONETHELESS IF THE OBSTACLES CAN BE OVERCOME APPAREL MARKETERS FORESEE BOUNDLESS POTENTIAL ON TV THEY ROMANCE THE CLOTHES TO SUCH A DEGREE SAYS KENAR'S MR ZIMMERMAN YOU SEE CLOTHES ON A PRETTY MODEL YOU SEE INTELLIGENT PEOPLE EXPLAINING ALL THE DETAILS THE FIT HOW TO PUT THE CLOTHES TOGETHER YOU CAN'T GET ALL OF THIS AT A DEPARTMENT STORE 9303310077 930331 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 5/16 HIGH 1 3/4 LOW 1 NEAR CLOSING BID 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 320 30 DAYS 319 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 267 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 304 60 DAYS 304 90 DAYS 309 120 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 727 60 DAYS 737 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 728 60 DAYS 738 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 9303310076 930331 AUCTION OF RIGHTS TO POLLUTE FETCHES ABOUT 21 MILLION BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UTILITIES ENVIRONMENTALISTS AND BROKERAGE FIRMS BOUGHT 21 MILLION OF DIRTY AIR AT A FIRSTEVER AUCTION OF RIGHTS TO POLLUTE THE ENVIRONMENT BIDDERS AT THE CHICAGO BOARD OF TRADE AUCTION BOUGHT ALLOWANCES TO EMIT 150010 TONS OF SULFUR DIOXIDE THE POLLUTANT THAT CAUSES ACID RAIN FOR 122 TO 450 A TON THE CBOT RAN THE AUCTION ON BEHALF OF THE ENVIRONMENTAL PROTECTION AGENCY WHICH IS RESPONSIBLE FOR ADMINISTERING A NATIONAL MARKETBASED PROGRAM TO CURB SULFUR DIOXIDE EMISSIONS THIS WAS A GOOD START SAID CARLTON BARTELS DIRECTOR OF ENVIRONMENTAL BROKERAGE SERVICES FOR CANTOR FITZGERALD INC WHICH BOUGHT 2572 ONETON POLLUTION ALLOWANCES FOR 170 EACH ON BEHALF OF A UTILITY WE BELIEVE IN THIS CONCEPT SEPARATELY THE CBOT ANNOUNCED PLANS TO HOLD ITS OWN QUARTERLY AUCTIONS OF POLLUTION ALLOWANCES ON BEHALF OF POWERGENERATING UTILITIES AND OTHERS WHO WISH TO SELL THEM THESE SUPPLEMENTAL AUCTIONS WERE NOT SPECIFICALLY AUTHORIZED BY THE EPA BUT AN EPA SPOKESMAN SAID THE AGENCY APPROVES OF THEM MONDAY'S AUCTION WAS PART OF A FEDERAL PROGRAM TO FORCE POWER COMPANIES TO CUT THEIR OUTPUT OF SULFUR DIOXIDE IN HALF BY THE YEAR 2000 THE EPA HAS TURNED OVER TO UTILITIES POLLUTION ALLOWANCES EACH OF WHICH ALLOWS THE DISCHARGE OF ONE TON OF SULFUR DIOXIDE A YEAR COMPANIES CAN EITHER USE THEIR ALLOWANCES TO COMPLY WITH CLEAN AIR LAWS OR THEY CAN CLEAN UP OPERATIONS AND SELL THEIR UNUSED ALLOWANCES TO OTHER UTILITIES OF THE 150010 ONETON POLLUTION ALLOWANCES SOLD AT MONDAY'S CBOT AUCTION 150000 WERE THOSE ALLOCATED FOR THE AUCTION BY THE EPA ITSELF UNDER THE CLEAN AIR ACT THE EPA TOOK SOME ALLOWANCES FROM UTILITIES AND SET THEM ASIDE TO BE AUCTIONED THE CBOT WILL TURN OVER THE 21 MILLION IN PROCEEDS FROM THE AUCTION TO THE EPA WHICH WILL DISTRIBUTE IT AMONG THE UTILITIES FROM WHICH IT TOOK THE ALLOWANCES UTILITIES HAD TURNED OVER AN ADDITIONAL 125000 ALLOWANCES TO BE AUCTIONED BY THE CBOT BUT THE POWER COMPANIES HAD SET MINIMUM PRICES FOR THE ALLOWANCES THAT WERE HIGHER THAN WHAT BUYERS OFFERED THEREFORE ONLY 10 OF THE 125000 EXTRA ALLOWANCES WERE SOLD AT THE AUCTION THE BIGGEST SINGLE BUYER WAS THE CAROLINA POWER & LIGHT CO WHICH BOUGHT 85103 ONETON ALLOWANCES AT PRICES RANGING FROM 122 TO 171 A TON OTHER UTILITIES THAT BOUGHT ALLOWANCES INCLUDED MISSISSIPPI POWER CO KENTUCKY UTILITIES CO GULF POWER CO ILLINOIS POWER CO AND AMERICAN ELECTRIC POWER SERVICE ONE INTERESTING TWIST IN THE PROGRAM IS THAT ANYONE CAN BUY THE POLLUTION ALLOWANCES ENVIRONMENTALISTS ARE BUYING THE ALLOWANCES TO RETIRE THEM ONE SUCH GROUP WAS THE CLEVELANDBASED NATIONAL HEALTHY AIR LICENSE EXCHANGE WHICH BOUGHT ONE ALLOWANCE FOR 350 DAVID WEBSTER PRESIDENT SAID IT IS OUR INTENT TO INCREASE OUR EFFORTS AND ACQUIRE ENOUGH ADDITIONAL PERMITS TO HAVE A REAL EFFECT ON THIS MARKET AND ON THE QUALITY OF AIR 9303310075 930331 BUSINESS BRIEF HOUGHTON MIFFLIN CO FIRM TO DISMISS 57 WORKERS AS PART OF A RESTRUCTURING HOUGHTON MIFFLIN CO WILL DISMISS 57 EMPLOYEES OR 28 OF ITS STAFF AS PART OF A RESTRUCTURING PROGRAM A SPOKESMAN SAID THE MOVE WAS PARTLY DICTATED BY DISAPPOINTING TEXTBOOK SALES IN TEXAS WHERE COMPETITORS INCLUDING HARCOURT GENERAL INC HAVE GAINED MARKET SHARE THIS YEAR HOUGHTON EARLIER ESTIMATED THAT IT EXPECTS TO GET ABOUT 15 OF READING TEXTBOOK SALES IN TEXAS THIS YEAR COMPARED WITH HARCOURT'S 50 SHARE ANALYSTS SAY THE TOTAL ANNUAL MARKET IS ABOUT 130 MILLION THOUGH THE TEXAS MARKET HAS BEEN WEAK FOR HOUGHTON A SPOKESMAN SAID THE SALE OF TEXTBOOKS ELSEWHERE IN THE NATION HAS LIVED UP TO EXPECTATION THE SPOKESMAN SAID MOST OF THE CUTS WILL BE MADE AT HOUGHTON'S HEADQUARTERS IN BOSTON WHERE THE COMPANY EMPLOYS ABOUT 1200 WORKERS 9303310074 930331 MARKETING & MEDIA WALT DISNEY CARVES UNEXPECTED SUCCESS FROM PINOCCHIO' VIDEO BURBANK CALIF PROVING THERE'S STILL PLENTY OF MONEY TO BE MILKED FROM ITS LIBRARY OF ANIMATED CLASSICS WALT DISNEY CO SAID CONSUMERS HAVE SNAPPED UP FOUR MILLION COPIES OF PINOCCHIO ON HOME VIDEOCASETTE IN THE FIRST SIX DAYS OF ITS RERELEASE COMPANY EXECUTIVES HAD BEEN HOLDING THEIR BREATHS TO SEE HOW PINOCCHIO WHICH SOLD ONLY ABOUT 500000 COPIES WHEN IT WAS FIRST RELEASED ON VIDEO IN 1985 WOULD PERFORM THE SECOND TIME OUT THEY WERE ESPECIALLY JITTERY AFTER THE MOVIE TOOK IN A DISAPPOINTING 187 MILLION IN THEATRICAL RERELEASE LAST SUMMER BUT DISNEY SAID PINOCCHIO HAS BECOME THE TOPSELLING VIDEO OF 1993 WITH MORE THAN 102 MILLION COPIES SHIPPED TO RETAILERS PINOCCHIO HAS WELL EXCEEDED ALL OF OUR INITIAL SHIPMENT AND CONSUMER SALES PROJECTIONS BY SEVERAL MILLION UNITS SAID ANN DALY PRESIDENT OF DISNEY'S BUENA VISTA HOME VIDEO DOMESTIC DIVISION DISNEY SAID THE PINOCCHIO RERELEASE HAS BOOSTED SALES OF ITS OTHER TITLES INCLUDING 101 DALMATIANS OF WHICH DISNEY HAS SHIPPED MORE THAN 13 MILLION COPIES AND BEAUTY AND THE BEAST WHICH HAS SOLD A RECORD 19 MILLION UNITS DISNEY WILL STOP SELLING PINOCCHIO EARLY NEXT YEAR AND HAS SAID IT WON'T MAKE THE FILM AVAILABLE AGAIN ON VIDEO UNTIL SOMETIME IN THE NEXT CENTURY THE VIDEO IS PRICED AT 2499 9303310073 930331 REVIEW & OUTLOOK EDITORIAL RILEY'S RALLY THEY STOOD AND CHEERED FOR NEW US SECRETARY OF EDUCATION RICHARD RILEY AT THE CALIFORNIA TEACHERS ASSOCIATION MEETING IN ANAHEIM ON SUNDAY BUT THEN THE MEMBERS OF THE CTA THE MOST POWERFUL LOBBY IN THE STATE WOULD HAVE SALUTED A PIECE OF CHALK IF BILL CLINTON HAD SENT IT THEIR WAY NOT THAT MR RILEY IS A BLANK SLATE HE VASTLY INCREASED SPENDING ON SCHOOLS WHEN HE WAS GOVERNOR OF SOUTH CAROLINA AND CTA PRESIDENT DEL WEBER SAID HE FELT AS IF MY BROTHER HAD BEEN APPOINTED WHEN MR CLINTON MADE HIS CHOICE FOR EDUCATION SECRETARY MORE IMPORTANT IS WHAT THE NEW MAN REPRESENTS A SHIFT AT THE FEDERAL AGENCY AWAY FROM BEING AS MR RILEY PUT IT DISTRACTED BY SIMPLE SOLUTIONS TO THE NATION'S CLASSROOM FAILURES A DISTRACTION IS TEACHERS' UNION CODE FOR AN APPROACH THAT DOESN'T INCLUDE MASSIVE DOSES OF TAX DOLLARS WHATEVER ELSE ITS GOALS AND THE WORST DISTRACTION IN THIS VIEW IS VOUCHERBASED PARENTAL SCHOOL CHOICE INDEED MR RILEY'S BIGGEST APPLAUSE LINE BEFORE THE UNIT OF THE NATIONAL EDUCATION ASSOCIATION WAS HIS FORSWEARING OF ANY SUCH OPTION INVOLVING PRIVATE SCHOOLS INSTEAD HE TICKED OFF BILLIONS OF DOLLARS IN ADDED SPENDING THAT THE CLINTONITES HAVE IN MIND FOR SEVERAL EXISTING FEDERAL PROGRAMS AS TO CONGRESS'S ROLE HE HERALDED AN END TO THE DIVISION AND GRIDLOCK THAT HAS PLAGUED EDUCATION GRIDLOCK A BUSY BOGYMAN IN WASHINGTON IS APPARENTLY CAUSING SAT SCORES TO SOUR MORE SIGNIFICANTLY THE SECRETARY SPOKE OF LONGERRANGE CLINTON PLANS TO FOCUS ON THE WHOLE CHILD FOR THE WHOLE DAY AND BEYOND THIS IS THE OPENING FOR USING THE SCHOOL BUILDING AS A BASE FOR AN EXPANSIVE SOCIALSERVICE PROGRAM INCLUDING PARENTS AND PROBABLY THE REST OF US AS WELL BY ITSELF THIS IS NO LONGER SUCH A RADICAL OR EVEN MISTAKEN NOTION BUT WE'RE INCLINED TO SUSPECT THAT THIS CROWD IS TRYING TO CAPTURE AND CONTROL THE IDEA BEFORE COMPETITORS SUCH AS THE WHITTLE PRIVATESCHOOL NETWORK APPEAR MR RILEY AND HIS HAPPY TEACHERS' UNION HOSTS AT THE CTA MIGHT HAVE NOTICED SOME POLL FIGURES IN THE LOS ANGELES TIMES LAST WEEK THAT SHOWED CALIFORNIANS DESPITE ALL THE HANDWRINGING OVER THEIR SCHOOLS ARE INCLINED TO THINK THAT BETTER MANAGEMENT AND NOT MORE MONEY IS THE ANSWER THESE POLL RESULTS MAY RECEIVE CONCRETE POLITICAL EXPRESSION IN JUNE 1994 WHEN A CALIFORNIA SCHOOL VOUCHER INITIATIVE WILL BE ON THE BALLOT ANYONE WHO GETS INVOLVED IN WRESTING CONTROL OF THE SCHOOLS AWAY FROM THE UNIONS DISCOVERS THE BREADTH OF THE ENTRENCHED OPPOSITION AFTER OUR EDITORIAL APPEARED LAST WEEK DESCRIBING WISCONSIN REFORMER LINDA CROSS'S CAMPAIGN FOR STATE SCHOOLS SUPERINTENDENT A LOCAL TV STATION FOLLOWED BY A RADIO STATION CALLED TO ASK WHO WE'D TALKED TO WHO WERE YOUR SOURCES AND HOW DID YOU FIND OUT ABOUT THIS DEMANDED ONE CALLER THESE WERE VERY ODD REPORTERS' QUESTIONS INDEED WE TOLD THEM THAT FOLKS IN WISCONSIN WERE HAPPY TO PROVIDE BACKGROUND AND THAT MOST OF OUR SOURCES ARE RIGHT THERE IN THE EDITORIAL IF SECRETARY RILEY IS GOING TO SPEND HIS TENURE BUCKING UP CHOICEBESET TEACHERS' UNIONS HE'S GOING TO BE OUT OF WASHINGTON A LOT 9303310072 930331 NEW BATTLEGROUND US COMPUTER FIRMS EXTENDING PC WARS CHARGE INTO JAPAN AMERICANS SUCH AS COMPAQ SLASH PRICES SWAP IDEAS WITH NEC A CHIEF TARGET FIGHTING AN IMAGE PROBLEM BY KYLE POPE AND DAVID P HAMILTON STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO IN A NONDESCRIPT CONFERENCE ROOM IN TOKYO'S KOJIMACHI BUSINESS DISTRICT EXECUTIVES FROM SOME OF THE WORLD'S BIGGEST COMPUTER COMPANIES HAVE CONVENED A MEETING THAT SEEMS TO LIVE UP TO AMERICA'S WORST FEARS ABOUT JAPAN THEY GREET ONE ANOTHER LIKE OLD FRIENDS LAUGHING AND SWAPPING JOKES BEFORE SITTING DOWN TO LUNCH AND TALKING ABOUT TACKLING MARKETS AND EXPANDING SALES THEY ALSO LOBBY A VISITING LEGISLATOR FROM THE JAPANESE DIET WHO MAKES A WINDY SPEECH ON ECONOMIC CONDITIONS AND THEN JOINS IN A SPIRITED DISCUSSION OF THEIR DIFFICULTIES IN OVERSEAS BUSINESS THIS SCENE MIGHT LOOK LIKE A PAGE FROM THE JAPAN INC HANDBOOK BUT THE COMPANIES AREN'T JAPANESE ELECTRONICS GIANTS THEY ARE MEMBERS OF AMERICA'S HIGHTECH ELITE COMPANIES SUCH AS COMPAQ COMPUTER CORP DELL COMPUTER CORP MICROSOFT CORP AND SUN MICROSYSTEMS INC SUCH ARE THE LENGTHS TO WHICH US COMPANIES ARE GOING TO CRACK THE JAPANESE PERSONALCOMPUTER MARKET WHILE ONE CAN HARDLY IMAGINE OFFICIALS OF THESE BITTER RIVALS AMIABLY SWAPPING SALES IDEAS IN THE US HERE IN JAPAN SUCH COOPERATION IS SIMPLY A MARK OF THEIR DETERMINATION TO WEDGE THEIR WAY INTO A MARKET LONG IMPENETRABLE TO THEM AND THEY ARE MAKING INROADS COMPAQ DELL AND INTERNATIONAL BUSINESS MACHINES CORP HAVE JOLTED NEC CORP HOLDER OF AN ESTIMATED 53 OF PERSONALCOMPUTER SALES IN JAPAN BY IMPORTING PRICECUTTING AND MARKETING BLITZES STRAIGHT FROM THE PC PRICE WAR IN THE US IT MAY BE THE MOST SERIOUS CHALLENGE US COMPANIES HAVE EVER MOUNTED AGAINST AN ENTRENCHED JAPANESE MANUFACTURER ON ITS HOME TURF NEC'S MANAGEMENT HAS HAD IT GOOD FOR SO LONG THAT IT HAS FORGOTTEN WHAT IT'S LIKE TO COMPETE IN COMPUTERS SAYS PETER WOLFF A TECHNOLOGY ANALYST AT KIDDER PEABODY & CO IN TOKYO NEC IS GOING TO GET ITS HEAD HANDED TO IT NEC OFFICIALS DISAGREE SAYING THEY SEE NO THREAT TO THEIR MARKET SHARE HOWEVER ANALYSTS EXPECT SALES OF IBMSTYLE PCS THE STANDARD EVERYWHERE BUT JAPAN TO REACH 200000 UNITS HERE THIS YEAR THAT WOULD BE ABOUT 10 OF THE 10 BILLION JAPANESE MARKET THE WORLD'S SECOND LARGEST INTERNATIONAL DATA CORP'S TOKYO OFFICE SAYS MAKERS OF THESE PCS COULD PICK UP ANOTHER 13 PERCENTAGE POINTS BY 1995 SHRINKING NEC'S MARKET SHARE TO ABOUT 40 FOR NEC THE US INVASION COMES AT A VERY BAD TIME HURT BY FALLING ELECTRONICS SALES IN A WEAK JAPANESE ECONOMY NEC IS EXPECTED TO POST A 360 MILLION PRETAX LOSS FOR THE FISCAL YEAR ENDING TODAY NOW THE COMPANY HAS BEEN FORCED TO SLASH PRICES ON ITS PCS WHICH HAVE ENJOYED HISTORICALLY FAT MARGINS ITS PRICES REMAIN WELL ABOVE THOSE OF THE US CHALLENGERS THOUGH NEC'S PROBLEMS WILL INTENSIFY IN MAY WHEN MICROSOFT WILL INTRODUCE THE LATEST JAPANESE VERSION OF ITS WINDOWS SOFTWARE WHICH HAS REVOLUTIONIZED THE US PC MARKET BECAUSE PROGRAMS WRITTEN FOR WINDOWS CAN RUN ON EITHER US OR NEC MACHINES WHICH ARE OTHERWISE INCOMPATIBLE WINDOWS COULD NEUTRALIZE NEC'S TENFOLD ADVANTAGE IN SOFTWARE TITLES ANY US GAINS IN JAPAN WON'T COME WITHOUT A STRUGGLE HOWEVER NEC HAS A VAST DISTRIBUTION NETWORK A LOYAL CUSTOMER BASE AND A BROADLY ACCEPTED OPERATING SYSTEM THAT HAVE ENABLED IT TO BEAT BACK PREVIOUS CHALLENGES EASILY IBM WHICH FIRST ENTERED JAPAN BEFORE WORLD WAR II HAD TROUBLE ACHIEVING EVEN A 7 SHARE OF THE PC MARKET AND WAS RECENTLY BEATEN OUT BY APPLE COMPUTER INC ACCORDING TO DATAQUEST JAPAN LTD APPLE NOW HOLDS THIRD PLACE IN JAPAN WITH AN 83 MARKET SHARE MEANWHILE AST RESEARCH INC IS STILL SMARTING FROM A FLOP IN 1990 WHEN IT FAILED TO SELL MORE THAN 1000 UNITS OF A TROUBLED PC THAT WAS SUPPOSED TO RUN BOTH NEC AND IBM SOFTWARE NEC'S MOST AGGRESSIVE US CHALLENGER IS COMPAQ THE HOUSTONBASED COMPANY WON ITS SPURS IN THE LATE 1980S AS AN IBMKILLER BUT THEN ITS SALES FELL AFTER IT FAILED TO REACT QUICKLY TO A RAPIDLY CHANGING AMERICAN PC MARKET NOW REVIVED BY NEW MANAGEMENT AND A STRATEGY AIMED AT CUTTING COSTS AND COMPETING ON PRICE COMPAQ IS BRINGING THE BATTLE TO JAPAN THE MEETINGS OF AMERICAN COMPUTER EXECUTIVES FOR INSTANCE WERE ORGANIZED BY THE PRESIDENT OF COMPAQ'S JAPANESE SUBSIDIARY MASARU MURAI COMPAQ'S LATEST MOVES ARE THE RESULT OF NEARLY SEVEN YEARS OF PREPARATION YEARS MARKED BY HESITANT STEPS AND TECHNOLOGICAL CHALLENGES FORMER CHIEF EXECUTIVE OFFICER JOSEPH ROD CANION AND THE REST OF HIS BOARD WERE LOATH TO POUR MONEY INTO JAPAN WHICH THEY SAW AS A HORNET'S NEST OF COMPETING STANDARDS AND ENTRENCHED COMPETITORS THEY KEPT SAYING THAT JAPAN REALLY IS A GREAT OPPORTUNITY BUT 'BOY IS IT TOUGH RIGHT NOW' RECALLS THOMAS J HOWARD WHO INITIALLY DIRECTED COMPAQ'S MOVE INTO JAPAN COMPAQ ALSO STRUGGLED TO MAKE A PC THAT IT COULD SELL IN JAPAN AN ORDINARY PC NEEDS ENORMOUS PROCESSING POWER TO HANDLE THE 10000 COMPLEX CHARACTERS THAT MAKE UP THE THREE JAPANESE ALPHABETS THAT POWER WASN'T AVAILABLE ON THE DESKTOP PC UNTIL THE ARRIVAL OF INTEL CORP'S 386 MICROPROCESSOR IN 1985 ALTHOUGH COMPANY INSIDERS SAY A JAPANESELANGUAGE PC HAS BEEN UNDER DEVELOPMENT AT COMPAQ SINCE THE LATE 1980S MR CANION REJECTED MOST OF THE MACHINES ARGUING THAT THEY WEREN'T UP TO SNUFF THE TEAM'S REAL BREAK DIDN'T COME UNTIL 1991AND IT CAME FROM OF ALL PLACES IBM BIG BLUE WORKING WITH ENGINEERS FROM COMPAQ AND OTHER AMERICAN COMPETITORS INTRODUCED DOS/V A JAPANESE VERSION OF THE US OPERATING SYSTEM DOS/V FEATURED AN EXTRALARGE DATA PIPELINE THAT EASED THE FLOW OF JAPANESE CHARACTERS THROUGH A PC MACHINES RUNNING DOS/V COULD ALSO HANDLE THE HUGE LIBRARY OF ENGLISHLANGUAGE DOS SOFTWARE AS WELL AS THE BURGEONING MARKET FOR DOS TITLES IN JAPAN COMPAQ MOVED FAST LAST SPRING UNDER NEW CEO ECKHARD PFEIFFER IT DELIBERATELY INTRODUCED IN JAPAN A BATCH OF OVERPRICED DOS/V COMPUTERS THE MACHINES GAVE THE COMPANY AN EXCUSE TO BUILD A SALES FORCE AND AN ADVERTISING CAMPAIGN WITHOUT SENDING UP WARNING FLARES TO ITS MAJOR JAPANESE AND US COMPETITORS THEN IN OCTOBER COMPAQ UNVEILED A NEW LINE OF ULTRALOWPRICED PCS IN JAPAN AND BEGAN A TOUGH ADVERTISING CAMPAIGN DESIGNED TO CHANGE THE WAY JAPANESE THINK ABOUT COMPUTERS COMPAQ SAYS ITS STRATEGY HAS QUICKLY SHOWN RESULTS ALTHOUGH THE COMPANY HAS BEEN SELLING ITS LOWPRICED COMPUTERS IN JAPAN ONLY FIVE MONTHS MR MURAI SAYS HIS OPERATION IS PROFITABLE DESPITE SKYHIGH PRINTING LABOR AND OFFICERENTAL COSTS THE COMPANY HAS MADE IMPORTANT INROADS WITH COSTCONSCIOUS CORPORATE BUYERS SUCH AS KYOWA HAKKO KOGYO CO A TOKYOBASED MAKER OF PHARMACEUTICALS AND SAKE THE COMPANY WHICH HAD PURCHASED ONLY NEC MACHINES FOR A DECADE SAYS IT HAS BOUGHT 10 COMPAQ PCS IN THE PAST YEAR AND IS CONSIDERING BUYING HUNDREDS MORE WE KNOW WE HAVE TO LOOK AT THE AMERICANS IF WE'RE GOING TO GET THE PRICE WE WANT SAYS HAJIME IWASA A KYOWA HAKKO PURCHASING OFFICER COMPAQ ALSO HOPES THAT LARGE MULTINATIONAL COMPANIES WITH OPERATIONS OUTSIDE JAPAN WILL BE ATTRACTED TO DOS/V MACHINES WHICH ARE BEING MARKETED AS GLOBAL PCS COMPATIBLE WITH MOST OTHER PERSONAL COMPUTERS IN THE WORLD NEC COMPUTERS RUN ON A PROPRIETARY OPERATING SYSTEM NOT SOLD OUTSIDE JAPAN A MAJOR PROBLEM HAS BEEN THE RELUCTANCE OF JAPANESE DEALERS AND BUYERS TO RISK THEIR COMFORTABLE RELATIONSHIP WITH NEC AS KATSUMO TORIUMI WHO OWNS A LANDAPPRAISAL COMPANY IN TOKYO SHOPS FOR COMPUTERS IN A MUSTY STORE IN THE CITY'S GARISH AKIHABARA ELECTRONICS DISTRICT HE TAKES ONLY PASSING NOTICE OF A DISPLAY OF COMPAQ MACHINES TUCKED AWAY IN A CORNER HE SPENDS MOST OF HIS TIME WITH A VAST ARRAY OF NEC COMPUTERS MUCH LIKE THE ONES HE HAS HAD EVER SINCE HE LAUNCHED HIS BUSINESS ASKED ABOUT THE PROSPECT OF PURCHASING AN AMERICAN COMPUTER HE SHAKES HIS HEAD MY ONLY CHOICE IS NEC HE SAYS EVEN A COMPAQ BUYER LIKE MR IWASA OF KYOWA HAKKO IS EDGY ALMOST APOLOGETIC ABOUT HIS DECISION HE WORRIES ABOUT ABANDONING A TRUSTED BUSINESS PARTNER AND COMMITTING HIS COMPANY TO A BRAND NAME STILL GENERALLY UNKNOWN HERE ALL OF US KNOW WE ARE TAKING A RISK HE SAYS AFTER COMPAQ'S MR PFEIFFER VISITED LAST OCTOBER TO KICK OFF THE COMPANY'S NEW LINE A JAPANESE BROADCASTING CREW FOLLOWED HIM AROUND THE WHOLE TIME WHEN THEY TRAILED HIM TO MEETINGS WITH DEALERS SOME OF THE DEALERS DIDN'T WANT TO BE FILMED WITH THE PRESIDENT OF THE CONTROVERSIAL US COMPANY AND WHEN COMPAQ GAVE REPORTERS A BROCHURE LISTING ITS APPROVED DEALERS IN JAPAN IT HAD TO OMIT ABOUT 10 FIRMS THAT SELL ITS MACHINES BUT REFUSED TO BE INCLUDED MR MURAI WHO IS WELL KNOWN IN COMPUTER CIRCLES HERE HAS HAD TO SNEAK AROUND HOTEL LOBBIES AND COFFEE HOUSES TO MEET WITH PROSPECTIVE DEALERS IT IS NOT AT ALL UNUSUAL HE SAYS FOR BIG DEALERS TO SET UP SEPARATE SUBSIDIARIES WITH DIFFERENT NAMES TO HANDLE THE COMPAQ BUSINESS ONE BIG DEALER CHAIN EVEN FORCED COMPAQ TO DELIVER ITS GOODS TO AN OUTOFTHEWAY WAREHOUSE TO AVOID NEC SNOOPS WHO MIGHT SEE THE MACHINES COME AND GO FROM THE MAIN DISTRIBUTION CENTER THERE IS STILL A FEAR OF GOING PUBLIC SAYS MR MURAI WHO LAUGHS AT THE PERCEPTION OF COMPAQ PCS AS A SORT OF INDUSTRIAL CONTRABAND ITO MAMORU HEAD OF COMPUTER SALES AT ROCKET ELECTRONICS AN AKIHABARA NEC DEALER CONTENDS THAT COMPAQ'S LOW PRICES PRECLUDE HIM FROM MAKING ENOUGH MONEY SELLING ITS MACHINES MOREOVER HE SAYS HIS RELATIONSHIPS WITH NEC PREVENT HIM FROM SELLING OTHER MAKERS' MACHINES IT'S KIND OF COMPLICATED TO EXPLAIN HE SAYS WE ARE STICKING WITH OUR POLICY THAT OUR MAIN BUSINESS IS NEC HE DECLINES TO ELABORATE ON HIS NEC TIES NEC OFFICIALS SAY THEY HAVE NO INFLUENCE OVER WHICH MACHINES ITS DEALERS SELL COMPANIES HOWEVER AREN'T THE ONLY POTENTIAL BUYERS COMPAQ AND OTHER US COMPUTER MAKERS HOPE TO JUMPSTART JAPAN'S FLEDGLING HOMECOMPUTER SALES JAPANESE CONSUMERS BUY 60 FEWER PCS PER CAPITA THAN AMERICANS DO FOR THE AMERICAN STRATEGY TO WORK THE US COMPANIES WILL HAVE TO GET CONSUMERS HERE TO ALTER THEIR PERCEPTION OF COMPUTERS AS EXPENSIVE OFFICE MACHINES THE COMPANIES ARE PUSHING PCS AS PERSONAL PRODUCTIVITY TOOLS ADOPTING IDEAS USED BY APPLE TO LAUNCH ITS MACINTOSHES IN THE US A DECADE AGO ONE COMPAQ AD SHOWS AN OVERSIZED AMERICAN PENNY AND MAKES A PEOPLE'S COMPUTER DECLARATION THAT DESCRIBES COMPAQ'S CHEAP PCS AS FOR BY AND OF THE PEOPLE MOST OF ALL THE US COMPANIES ARE BATTLING DEEPSEATED MISTRUST OF AMERICAN TECHNOLOGY ALTHOUGH JAPANESE CONSUMERS ARE MESMERIZED BY MCDONALD'S FRENCH FRIES COCACOLA AND LEVI'S JEANS THEY CONSIDER AMERICAN COMPUTERS SECONDRATE AND THEIR SERVICE AND SUPPORT WEAK IN TOKYO FOR INSTANCE IF A LARGE CUSTOMER'S HARD DISK FAILS IT ISN'T UNUSUAL FOR A JAPANESE MANUFACTURER TO DISPATCH A TEAM TO FIX THE PROBLEM THE MANUFACTURER ALSO SENDS A LETTER OF APOLOGY AND ITS ENGINEERS EXPLAIN WHAT WILL BE DONE TO PREVENT SIMILAR PROBLEMS IN THE FUTURE SO WHILE AMERICANMADE PCS GENERALLY ENJOY A STERLING REPUTATION ELSEWHERE IN THE WORLD KAZUHIKO MATSUMOTO A COLLEGE STUDENT ABOUT TO BEGIN HIS FIRST JOB SAYS HE DOESN'T TRUST THEM HE IS SHOPPING FOR HIS FIRST PC IN A SEVENSTORY ELECTRONICS MALL IN AKIHABARA DOS/V MACHINES ARE ON DISPLAY AMID BANNERS AND COLORFUL SIGNS BUT MR MATSUMOTO ISN'T SWAYED THE JAPANESE COMPANIES WILL TAKE CARE OF ME HE SAYS IF I BUY COMPAQ OR DELL I DON'T BELIEVE THEY WILL SUCH CONCERNS HAVE BEEN FUELED IN PART BY NEC WHOSE ADS HAVE ATTACKED THE US COMPUTERS AN UNUSUALLY AGGRESSIVE STEP IN JAPAN WHERE COMPARATIVE ADVERTISING IS CONTROVERSIAL NEC PLAYS UP THE FACT THAT DOS/V MACHINES DON'T DISPLAY JAPANESE CHARACTERS AS QUICKLY AS NEC'S PCS DO AND IT CONTENDS THAT THE US MACHINES ARE CULTURALLY UNSUITED TO JAPAN COMPAQ WORKING WITH THE J WALTER THOMPSON AD AGENCY IN JAPAN HAS FIRED BACK THE AGENCY HAS PRODUCED A SERIES OF ADS TOUTING COMPAQ'S ARRIVAL AS THE BEGINNING OF A COMPUTER REVOLUTION ONE AD PICTURES A WOOLLY MAMMOTH STANDING BEFORE THE TOKYO SKYLINE AND COMPARES THE PREHISTORIC CREATURE TO THE OUTMODED MACHINES OF SOME OF JAPAN'S COMPANIES AT THE VERY LEAST THE US COMPANIES ALREADY HAVE SUCCEEDED IN CHANGING THE RULES OF BUSINESS IN JAPAN EXPORTING THE LOWPRICE STRATEGY DEVISED DURING A BRUTAL YEAR OF CONSOLIDATION IN THE PC BUSINESS AT HOME JAPAN IS NOT MARS SAYS MR HOWARD COMPAQ'S JAPAN GURU I'M CONVINCED THAT THESE FOLKS ARE GOING TO RESPOND TO THE SAME KINDS OF THINGS THAT ALL THE REST OF US RESPOND TO 9303310071 930331 BUSINESS BRIEF GENERAL MOTORS CORP AUTO MAKER FACES 22 SUITS OVER 197387 PICKUP TRUCKS GENERAL MOTORS CORP DISCLOSED IN ITS 10K STATEMENT THAT THE DETROIT AUTO MAKER FACES 22 DIFFERENT LAWSUITS IN STATE AND FEDERAL COURTS BY ATTORNEYS SEEKING TO REPRESENT PICKUP OWNERS AS A CLASS THE SUITS INVOLVING GM'S 197387 PICKUPS WITH SIDEMOUNTED GAS TANKS SEEK TO FORCE GM TO FIX THE TRUCKS AND REIMBURSE OWNERS FOR RESALE VALUE LOST BY THE CONTROVERSY OVER THE VEHICLES CRITICS CHARGE THAT 47 MILLION 197387 PICKUPS ARE VULNERABLE TO GAS LEAKS IN SIDEIMPACT ACCIDENTS WHICH COULD IGNITE FIRES GM CONTENDS THAT THE PICKUPS ARE AS SAFE AS ITS COMPETITORS' MODELS AN ANALYSIS OF THE USED PICKUP TRUCK MARKET BY CCC INFORMATION SERVICES INC A CHICAGO AUTO INSURANCE CONSULTANT INDICATES THAT THE CHEVROLET AND GMC PICKUPS HAVE RETAINED THEIR VALUE BETTER THAN FORD MOTOR CO'S PICKUPS 9303310070 930331 BUSINESS BRIEF PREMIER ANESTHESIA INC MEDICAL CONCERN EXPECTS TO POST FIRSTQUARTER LOSS PREMIER ANESTHESIA INC EXPECTS TO REPORT A FIRSTQUARTER LOSS OF AS MUCH AS 14 MILLION OR AS MUCH AS 15 CENTS A SHARE SAID RICHARD D BALLARD PRESIDENT AND CHIEF EXECUTIVE OFFICER IN THE 1992 FIRST QUARTER THE ATLANTA COMPANY WHICH PROVIDES ANESTHESIARELATED SERVICES TO HOSPITALS AND CLINICS REPORTED EARNINGS OF 388476 OR SIX CENTS A SHARE THE COMPANY HAS ABOUT 91 MILLION SHARES OUTSTANDING COMPARED WITH 61 MILLION A YEAR AGO FIRSTQUARTER REVENUE MR BALLARD SAID IS EXPECTED TO TOTAL ABOUT 20 MILLION PLUS OR MINUS 10 COMPARED WITH 127 MILLION A YEAR EARLIER HE SAID HE EXPECTS PREMIER TO REPORT FULLYEAR PERSHARE EARNINGS OF BETWEEN 25 CENTS AND 40 CENTS ON REVENUE OF BETWEEN 95 MILLION AND 110 MILLION FOR 1992 THE COMPANY REPORTED EARNINGS OF 26 MILLION OR 30 CENTS A SHARE ON REVENUE OF 586 MILLION WE DON'T ANTICIPATE ANY MORE QUARTERLY LOSSES THIS YEAR MR BALLARD SAID OUR BASE BUSINESS IS EXTREMELY SOUND 9303310069 930331 BUSINESS BRIEF TOPPS CO LOSS OF 214 MILLION POSTED FOR THE FISCAL 4TH QUARTER TOPPS CO AS EXPECTED SWUNG TO A SIGNIFICANT LOSS IN THE FISCAL FOURTH QUARTER FROM A YEAREARLIER PROFIT BECAUSE OF A SHARP DROP IN SALES AND AN INCREASE IN PROVISIONS FOR RETURNS AND OBSOLETE INVENTORY THE NEW YORK SPORTSCARD COMPANY SAID IT HAD A NET LOSS OF 214 MILLION OR 45 CENTS A SHARE IN THE QUARTER ENDED FEB 27 COMPARED WITH A YEAREARLIER PROFIT OF 127 MILLION OR 27 CENTS A SHARE SALES DECLINED 52 TO 404 MILLION FROM 847 MILLION TOPPS STOCK CLOSED UNCHANGED AT 750 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY HAD SAID IN JANUARY THAT IT EXPECTED TO REPORT A LOSS FOR THE QUARTER I DON'T THINK IT'S THAT DAMAGING SAID THEODOR KUNDTZ WHO FOLLOWS THE COMPANY FOR BEAR STEARNS & CO I THINK IT'S SOMETHING THAT'S BEHIND THEM HE SAID THE LOSS REFLECTED A 22 MILLION PRETAX CHARGE FOR OBSOLETE INVENTORY AND SALES WERE REDUCED BY 8 MILLION OF RETURNS 9303310068 930331 BUSINESS BRIEF CYPRUS MINERALS CO AUSTRALIAN UNIT MAKES OFFER FOR MCILWRAITH MCEACHARN CYPRUS MINERALS CO SAID ITS AUSTRALIAN COAL MINING UNIT HAS OFFERED TO ACQUIRE ALL THE SHARES OF MCILWRAITH MCEACHARN LTD OF SYDNEY AUSTRALIA FOR ABOUT US58 MILLION CYPRUS BASED IN DENVER SAID ITS INTEREST IN MCILWRAITH IS THE COMPANY'S 40 STAKE IN OAKBRIDGE LTD AN AUSTRALIAN COAL COMPANY THAT PRODUCED ABOUT 11 MILLION TONS OF THERMAL AND COKING COAL LAST YEAR FOR EXPORT TO ASIA AND EUROPE TOMEN CORP OWNS 25 OF OAKBRIDGE AND NIPPON OIL AUSTRALIA PTY A UNIT OF JAPAN'S NIPPON OIL CO HOLDS 23 THE DEAL IS SUBJECT TO GOVERNMENT APPROVALS AND CONDITIONED ON ACQUIRING 90 OF MCILWRAITH'S STOCK THE PURCHASE HOWEVER PROBABLY WON'T BE THE LAST COAL DEAL CYPRUS WILL BE MAKING IN THE COMING MONTHS CYPRUS MINERALS CHAIRMAN MILTON WARD RECENTLY SAID HE HOPES TO INCREASE CYPRUS'S COAL PRODUCTION TO 40 MILLION TONS A YEAR OVER THE NEXT FIVE YEARS IN 1992 CYPRUS PRODUCED 188 MILLION TONS OF COAL AND MCILWRAITH'S INTEREST IN OAKBRIDGE WOULD ADD ABOUT 44 MILLION TONS ANNUALLY 9303310067 930331 RTC SELLS PROPERTY ACQUIRED IN FAILURE OF S&L AT HUGE LOSS DENVER THE RESOLUTION TRUST CORP SOLD A 23000ACRE RANCH IN COLORADO TO A SAUDI ARABIAN FAMILY REAPING 185 MILLION FOR THE PROPERTY THE RANCH WHICH THE RTC ACQUIRED IN THE FAILURE OF PHOENIXBASED WESTERN SAVINGS & LOAN ASSOCIATION HAD BEEN THE SECURITY FOR A 235 MILLION REALESTATE LOAN THE RANCH WAS ONE OF THE LARGEST ASSETS IN THE PORTFOLIO OF WESTERN WHICH WAS TAKEN OVER BY THE GOVERNMENT IN 1989 THE THRIFT'S FAILURE IS EXPECTED TO COST ABOUT 17 BILLION EARLIER THIS MONTH THE RTC SUED SEVERAL OFFICIALS AND BORROWERS OF WESTERN IN A CIVIL SUIT IN LOS ANGELES SEEKING 15 MILLION REAL ESTATE DEVELOPER FRANK ARIES BOUGHT THE 20000ACRE BANNINGLEWIS RANCH AND AN ADJACENT 3000ACRE HOUSING DEVELOPMENT NEAR COLORADO SPRINGS COLO WITH LOANS FROM WESTERN IN 1985 WHEN MR ARIES'S REALESTATE DEVELOPMENT PROJECT SLATED FOR THE PROPERTY FAILED IN 1989 THE LAND WAS RETURNED TO WESTERN 9303310066 930331 INTERNATIONAL BRIEF CIBAGEIGY LTD SWISS DRUG CHEMICAL GROUP SAYS 1992 EARNINGS ROSE 19 CIBAGEIGY LTD THE SWISS DRUG AND CHEMICAL GROUP REPORTED THAT NET INCOME GREW 19 IN 1992 TO 152 BILLION SWISS FRANCS 101 BILLION FROM 128 BILLION FRANCS IN 1991 AT A NEWS CONFERENCE THE COMPANY ALSO EXPRESSED CONFIDENCE IN ITS 1993 POTENTIAL RESULTS ALEX KRAUER PRESIDENT SAID IN A PREPARED STATEMENT THAT IN 1993 IN SPITE OF AN UNFRIENDLY ENVIRONMENT WE SHALL MAINTAIN OUR STANDARD OF PERFORMANCE AND MAKE FURTHER PROGRESS IN IMPLEMENTING OUR STRATEGY OF SUSTAINABLE GROWTH GROUP SALES ROSE 53 TO 22204 BILLION FRANCS FROM 21077 BILLION FRANCS IN 1991 THE COMPANY PLANS A DIVIDEND OF 14 FRANCS 930 A SHARE AND PARTICIPATION CERTIFICATE UP FROM 13 FRANCS THE YEAR BEFORE THE DIVIDEND AND PROFIT FIGURES APPROXIMATED EXPECTATIONS ANALYSTS SAID IN OPERATING PROFIT IN 1992 THE HEALTH CARE AND INDUSTRY SEGMENTS SHOWED POSITIVE RESULTS WHILE AGRICULTURE POSTED A DECLINE THE COMPANY SAID 9303310065 930331 WHO'S NEWS TPI ENTERPRISES TAPS SHARP FOR PRESIDENT NAMES NEW DIRECTORS WEST PALM BEACH FLA TPI ENTERPRISES INC NAMED GARY SHARP PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MOVE IS PART OF A SERIES OF EXECUTIVE AND BOARD CHANGES THE COMPANY WHICH OPERATES 183 SHONEY'S AND 70 CAPTAIN D'S RESTAURANTS IS MAKING AS IT NARROWS ITS FOCUS TO ITS RESTAURANT OPERATIONS THE COMPANY RECENTLY AGREED TO SELL ITS THEATERS MR SHARP 46 YEARS OLD AND PREVIOUSLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY'S TPI RESTAURANT UNIT SUCCEEDS STEPHEN R COHEN 50 WHO CONTINUES AS CHAIRMAN THE COMPANY ALSO NAMED THREE DIRECTORS TO REPRESENT THE INTERESTS OF THE BASS FAMILY AND RELATED ENTITIES WHICH RECENTLY ACQUIRED A 17 STAKE IN TPI THROUGH A 30 MILLION INVESTMENT THE DIRECTORS ARE DOUGLAS K BRATTON 34 JOHN L MARION JR 31 AND THOMAS M TAYLOR 50 THE COMPANY SAID A FOURTH DIRECTOR REPRESENTING BASSRELATED INTERESTS WILL SOON BE ADDED TO THE BOARD TO SUCCEED ANOTHER DIRECTOR WHO IS EXPECTED TO STEP DOWN FREDERICK W BURFORD 42 FORMERLY VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE RESTAURANT UNIT WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE PARENT COMPANY AND A DIRECTOR HE SUCCEEDS JOSEPH P GOWAN 53 WHO RETIRED PHILLIP E COHEN ALSO RESIGNED FROM THE BOARD AS DID ROBERT A KENNEDY WHO CONTINUES AS EXECUTIVE VICE PRESIDENT AND SECRETARY THE MOVES INCREASE THE BOARD TO 10 MEMBERS FROM NINE 9303310063 930331 MR COFFEE SETTLES CHARGES BY THE FTC OVER ITS ADS WASHINGTON THE FEDERAL TRADE COMMISSION SAID MR COFFEE INC AGREED TO SETTLE CHARGES OF INACCURATE AND MISLEADING AD CLAIMS ABOUT THE ENVIRONMENTAL SAFETY OF ITS COFFEE FILTERS UNDER THE PACT MR COFFEE WHICH NEITHER ADMITTED NOR DENIED WRONGDOING AGREED NOT TO ADVERTISE ITS COFFEE FILTERS AS CHLORINE FREE IT ALSO MUST STOP ADVERTISING THAT THE FILTER'S BLEACHING PROCESS VIRTUALLY ELIMINATES ENVIRONMENTALLY HARMFUL BYPRODUCTS IN ADDITION THE FTC ACCUSED MR COFFEE OF FALSELY CLAIMING ITS FILTERS ARE MADE FROM RECYCLED PAPER THE COMPANY IS REQUIRED TO CHANGE ITS LABELING BUT MAY CONTINUE TO USE ITS EXISTING INVENTORY THROUGH AUGUST THE PACT IS SUBJECT TO PUBLIC COMMENT FOR 60 DAYS BEFORE IT'S FINALIZED IN BEDFORD HEIGHTS OHIO MR COFFEE DECLINED TO COMMENT SEPARATELY MR COFFEE SAID IT WOULD TAKE A FIRSTQUARTER CHARGE OF 13 MILLION OR 15 CENTS A SHARE RELATED TO THE RETIREMENT OF THE REMAINING 13 MILLION OF ITS 165 RESET NOTES AND THE REMAINING 56 MILLION OF ITS SENIOR TERM NOTES IN THE 1992 FIRST QUARTER MR COFFEE HAD NET INCOME OF 390000 OR FIVE CENTS A SHARE THE DEBT WILL BE RETIRED WITH FUNDS FROM A NEW CREDIT PACT WITH MR COFFEE'S LENDERS LED BY NBD BANCORP'S NBD BANK THE PACT GIVES MR COFFEE A FOURYEAR 15 MILLION TERM LOAN AND A NEW TWOYEAR LINE OF CREDIT 9303310062 930331 INTERNATIONAL BRIEF BALTICA HOLDING AS DANISH FIRM POSTS '92 LOSS BEGINS TO SELL OFF ITS ASSETS DENMARK'S BATTERED BALTICA HOLDING AS POSTED A LOSS OF 44 BILLION DANISH KRONER 704 MILLION FOR 1992 SCRAPPED ITS DIVIDEND AND SAID IT IS PRESSING AHEAD WITH A PLAN TO EVENTUALLY SELL OFF ALL THE COMPANY'S ASSETS THE FIRST BALTICA TRANSACTION ALSO WAS ANNOUNCED YESTERDAY WHEN THE FRENCH FINANCIAL AND INSURANCE CONCERN CIE DE SUEZ SAID IT BOUGHT BALTICA'S 5 STAKE IN SUEZ'S MAIN INSURANCE UNIT GROUPE VICTOIRE NEITHER BALTICA NOR SUEZ WHICH IN TURN OWNS 23 OF BALTICA ANNOUNCED THE TRANSACTION PRICE AT CURRENT MARKET PRICES THE STAKE WOULD BE VALUED AT SLIGHTLY LESS THAN ONE BILLION KRONER THE PURCHASE RAISES SUEZ'S TOTAL STAKE IN VICTOIRE TO 58 LAST WEEK BALTICA AN INSURANCE HOLDING COMPANY BASED IN KLAUSDALSBROVEJ DENMARK ANNOUNCED THAT IT HAD SPLIT OFF ITS HEALTHY BALTICA FORSIKRING INSURANCE UNIT WHICH WILL NOW BE RUN AS A SEPARATE COMPANY ONLY BALTICA FORSIKRING WILL RETAIN THE BALTICA NAME THE REST OF THE COMPANY'S UNITS WILL ADOPT A NEW NAME WHICH HASN'T YET BEEN DECIDED BALTICA HOLDING HAS BEEN AFFECTED BY THE PROBLEMS THAT HAVE SWEPT THROUGH THE SCANDINAVIAN INSURANCE AND BANKING INDUSTRIES IN THE LAST YEAR 9303310061 930331 TECHNOLOGY SOUTHWESTERN BELL OFFERS CELLULAR SYSTEM FOR BUSINESS PHONES WASHINGTON SOUTHWESTERN BELL CORP'S CELLULAR UNIT AND PANASONIC COMMUNICATIONS & SYSTEMS CO INTRODUCED A WIRELESS BUSINESS TELEPHONE SYSTEM THE COMPANIES SAID THE SYSTEM KNOWN AS FREEDOMLINK USES POCKET PHONES OPERATING ON LOW POWER OVER CELLULAR FREQUENCIES THE PERSONAL COMMUNICATIONS SYSTEM IS LINKED TO AN EXISTING OFFICE PHONE SYSTEM AND OPERATES AS A PHONE EXTENSION SO THAT USERS MOVING AROUND IN A BUILDING COULD RECEIVE CALLS OVER EITHER AN ORDINARY DESK PHONE OR A LIGHTWEIGHT POCKET PHONE AN EMPLOYEE COULD ALSO TAKE THE PHONE OUT OF THE OFFICE WHERE IT WOULD OPERATE ON THE REGULAR CELLULAR PHONE NETWORK THOSE CALLS WOULD BE BILLED AT REGULAR AIRTIME RATES SOUTHWESTERN BELL THE REGIONAL PHONE COMPANY BASED IN SAN ANTONIO SAID ITS SOUTHWESTERN BELL MOBILE SYSTEMS AND CELLULAR ONE UNITS WILL MARKET FREEDOMLINK IN THE COMPANY'S 54 CELLULAR SERVICE AREAS IN THE SOUTHWEST MIDWEST AND ALONG THE EAST COAST THE SYSTEM WILL BE MARKETED FIRST IN BOSTON NEXT MONTH AND WILL BE ROLLED OUT TO OTHER AREAS BY THE END OF JUNE PANASONIC IS A UNIT OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO PRICING VARIES AMONG MARKETS AND MOST SYSTEMS WILL COST BETWEEN 1800 AND 2500 FOR EACH EXTENSION DEPENDING ON THE SIZE OF THE COVERAGE AREA IN ADDITION THE SERVICE WOULD COST 10 TO 40 A MONTH FOR EACH EXTENSION THE COMPANIES SAID ALSO YESTERDAY U S WEST INC SAID IT PLANS TO CONDUCT A 10 MILLION MARKET TRIAL OF LOWPOWER WIRELESS COMMUNICATIONS IN BOISE IDAHO BEGINNING IN APRIL 1994 9303310060 930331 IBM GRANTS GERSTNER PAY PACKAGE VALUED AT UP TO 35 MILLION COMPENSATION INCLUDES BONUS IF NEW EXECUTIVE REACHES CERTAIN PERFORMANCE GOALS BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP'S DIRECTORS OFFICIALLY BLESSED LOUIS V GERSTNER AS THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER GIVING HIM A DEAL THAT WILL MAKE HIM THE HIGHESTSALARIED IBM EXECUTIVE IN HISTORY AT A REGULARLY SCHEDULED BOARD MEETING IN ARMONK NY THE DIRECTORS APPROVED A PAY PACKAGE THAT COULD GIVE MR GERSTNER 35 MILLION IN 1993 IBM SAID MR GERSTNER'S BASE SALARY WILL BE 2 MILLION HE WILL RECEIVE A 15 MILLION BONUS IF HE REACHES CERTAIN PERFORMANCE GOALS MR GERSTNER WAS ALSO GRANTED OPTIONS TO BUY 500000 IBM SHARES AN UNUSUALLY HIGH AWARD BY IBM STANDARDS AND IBM'S BOARD APPROVED A RICH ONETIME PAYMENT OF 5 MILLION TO REIMBURSE MR GERSTNER FOR CERTAIN BENEFITS HE HAS SACRIFICED BY LEAVING RJR NABISCO HOLDINGS CORP MOSTLY OPTIONS TO BUY RJR SHARES CHEAPLY AS CHAIRMAN OF RJR NABISCO MR GERSTNER WAS PAID 3 MILLION IN SALARY AND BONUS LAST YEAR HE WAS PAID AN ADDITIONAL 1 MILLION IN 1992 MOSTLY FOR A RETIREMENT PACKAGE GUARANTEED IN HIS EMPLOYMENT AGREEMENT WITH RJR WHEN HE JOINED RJR IN 1989 HE RECEIVED GRANTS AND OPTIONS FOR MORE THAN FIVE MILLION RJR SHARES MOSTLY AT 5 A SHARE RJR MANAGERS HAD SPOKEN OF GETTING THE STOCK UP TO ABOUT 20 IN THE NEXT FEW YEARS A POTENTIAL BONANZA FOR MR GERSTNER BUT AN ATTORNEY WHO HELPED NEGOTIATE THE IBM PACKAGE SAID MR GERSTNER WAS SIMPLY MADE WHOLE FOR THE CURRENT VALUE OF HIS OPTIONS WHICH AREN'T EXERCISABLE IF HE LEAVES RJR IT COULDN'T BE LEARNED HOW MANY RJR OPTIONS MR GERSTNER HAD YET TO EXERCISE WHEN HE JOINED IBM ALL WERE EXERCISABLE AS OF MARCH 10 ACCORDING TO RJR'S 1989 PROXY STATEMENT RJR STOCK CLOSED YESTERDAY AT 8125 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AN IBM SPOKESMAN DECLINED TO GIVE DETAILS OF THE DIRECTORS' PERFORMANCE GOALS FOR MR GERSTNER WHEN HE WAS TAPPED FOR THE IBM HELM LAST WEEK HOWEVER MR GERSTNER SAID ONE OF HIS IMMEDIATE PRIORITIES WOULD BE TO BOOST IBM'S SHAREHOLDER VALUE THROUGH BETTER STOCKPRICE PERFORMANCE NEW TYPES OF EQUITY ASSET SALES OR WHATEVER OTHER METHODS SEEM APPROPRIATE MR GERSTNER'S OPTIONS WILL ALLOW HIM TO BUY 500000 IBM SHARES AT THE AVERAGE MARKET PRICE ON THE DATE OF THE GRANT WHICH IS YET TO BE DECIDED IN A STROKE THAT WOULD GIVE HIM AN OPTION POSITION ALMOST EQUAL TO THAT OF FORMER IBM CHAIRMAN JOHN AKERS WHO HAD GATHERED 550000 OPTIONS EXERCISABLE AT VARIOUS PRICES BY THE END OF HIS TENURE LAST YEAR MR AKERS RECEIVED OPTIONS TO BUY 97000 SHARES OF IBM STOCK AT NEARLY 90 A SHARE THOSE ARE CURRENTLY OUTOFTHEMONEY IN COMPOSITE TRADING ON THE BIG BOARD YESTERDAY IBM SHARES FINISHED FAR BELOW THAT PRICE AT 50 DOWN 175 BUT MR AKERS'S 1992 OPTIONS ARE VALID THROUGH 2002 SO HE COULD STILL BENEFIT FROM A GOOD PERFORMANCE BY MR GERSTNER IN ADDITION TO HIS REGULAR PAY PACKAGE MR GERSTNER WILL RECEIVE A 500000 BONUS AFTER THREE YEARS IF HE REACHES CERTAIN LONGTERM GOALS IBM DIDN'T DESCRIBE THE LONGTERM GOALS WHILE NOT WILDLY EXCESSIVE BY US CORPORATE STANDARDS MR GERSTNER'S COMPENSATION IS UNUSUALLY RICH FOR A RELATIVELY UNOSTENTATIOUS COMPANY SUCH AS IBM IN 1990 IBM'S BEST YEAR SINCE ITS GLORY DAYS IN THE MID1980S MR AKERS WAS PAID 263 MILLION IN SALARY AND BONUS THE IBM SPOKESMAN SAID THAT WAS LIKELY THE HIGHEST REGULAR PAY PACKAGE AN IBM OFFICIAL EVER RECEIVED MR AKERS ALSO RECEIVED AN AWARD OF 2 MILLION IN RESTRICTED STOCK IN 1990 SINCE THEN MR AKERS'S PAY DECLINED AS BIG BLUE'S PERFORMANCE SLID INTO THE MIRE MR AKERS RECEIVED 13 MILLION IN SALARY AND BONUS LAST YEAR WHILE THE BELEAGUERED COMPUTER GIANT LOST NEARLY 5 BILLION MR GERSTNER'S LUCRATIVE DEAL MAY RAISE EYEBROWS FOR ANOTHER REASON IN AN UNFORTUNATE JUXTAPOSITION MORE THAN 2500 IBM EMPLOYEES IN NEW YORK'S MIDHUDSON VALLEY REGION RECEIVED NOTICE THAT THEY WILL BE LAID OFF THE IBM SPOKESMAN SAID SUCH TIMING COULDN'T BE AVOIDED AND SAID THE COMPANY DOESN'T EXPECT MR GERSTNER'S PACKAGE WILL FOSTER RESENTMENT AMONG CURRENT AND DEPARTING EMPLOYEES THE LAYOFFS IN AN AREA THAT SERVED AS A CRADLE TO THE MODERNDAY IBM HAD BEEN EXPECTED THEY RESULTED FROM SWEEPING CUTBACKS IN IBM'S CORE MAINFRAMECOMPUTER OPERATION WHICH HAS SUFFERED SLUMPING SALES IN RECENT MONTHS IN EAST FISHKILL NY FOR EXAMPLE IBM DECIDED LAST MONTH TO STOP MAKING THE SPEEDY SILICON CIRCUITS THAT ACT AS MAINFRAMES' BRAINS IBM'S SEMICONDUCTOR PRODUCTION WILL BE CONSOLIDATED IN ANOTHER PLANT IN BURLINGTON VT THE MOVE BOOSTED EARLIER ESTIMATES OF HOW MANY WORKERS WOULD HAVE TO LEAVE THE FACILITY TO 4000 PREVIOUSLY 3000 PEOPLE HAD BEEN SCHEDULED TO DEPART EAST FISHKILL FROM A TOTAL OF ABOUT 9200 WORKERS IBM SAID ROUGHLY TWOTHIRDS OF EAST FISHKILL'S 4000 SURPLUSED PEOPLE WOULD BE TRANSFERRED TO ANOTHER IBM LOCATION OR WOULD TAKE A VOLUNTARY BUYOUT PACKAGE MOST OF THE REMAINING EMPLOYEES AS MANY AS 1300 WERE TOLD YESTERDAY THEY WOULD BE LAID OFF A SPOKESWOMAN SAID LAIDOFF WORKERS WILL BE OFFERED A SEVERANCE PACKAGE THAT'S ALMOST THE SAME AS THE BUYOUT PACKAGE INCLUDING AS MUCH AS A YEAR'S SALARY SIMILAR SCENES PLAYED OUT IN NEARBY POUGHKEEPSIE NY AND KINGSTON NY WHERE A TOTAL OF ABOUT 1400 EMPLOYEES WERE LAID OFF BOTH TOWNS ARE MAJOR NERVE CENTERS FOR BIG BLUE'S MAINFRAMEMAKING BUSINESS AND WILL BE HARD HIT BY THE RETRENCHMENT THE LAYOFFS WEREN'T IBM'S FIRST EVER THE COMPANY BROKE THAT TABOO WHEN SOME CORPORATE STAFFERS GOT PINK SLIPS A FEW WEEKS AGO 9303310059 930331 TOFUTTI BRANDS ACCORD CRANFORD NJ TOFUTTI BRANDS INC A MAKER OF NONDAIRY FROZEN DESSERTS SAID IT REACHED A DISTRIBUTION AGREEMENT WITH ICE CREAM MAKER HAAGENDAZS A UNIT OF GRAND METROPOLITAN PLC OF LONDON UNDER THE AGREEMENT HAAGENDAZS WILL DISTRIBUTE TOFUTTI'S PRODUCTS THROUGHOUT ITS DISTRIBUTION NETWORK IN NEW YORK NEW JERSEY MARYLAND DELAWARE VIRGINIA CONNECTICUT AND THE DISTRICT OF COLUMBIA 9303310058 930331 CLINTON HEALTH ADVISERS MULL WIDER INSURANCE PROPOSAL TO ADD WORKERS' COMPENSATION IS SEEN AS GESTURE TO BUSINESS BY KEVIN G SALWEN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING FOLDING WORKERS' COMPENSATION AND AUTO INSURANCE HEALTH COVERAGE INTO THE BASIC HEALTH BENEFITS PACKAGE IT WANTS TO MAKE AVAILABLE TO EVERYONE UNDER ITS HEALTH REFORM PLAN OFFICIALS HOPE THAT SUCH A MEASURE WHICH COULD SAVE BUSINESS BILLIONS OF DOLLARS IN WORKERS' COMPENSATION COSTS WOULD SOFTEN THE OPPOSITION OF MANY BUSINESS GROUPS TO ANOTHER EXPECTED CLINTON PROPOSAL MANDATING ALL EMPLOYERS TO CONTRIBUTE TO THE COST OF HEALTH INSURANCE FOR THEIR WORKERS ADVISERS TO THE ADMINISTRATION'S HEALTHCARE TASK FORCE HAVE DISCUSSED THE IDEA WITH BUSINESS GROUPS INSURERS AND ACADEMICS AS A WAY TO HELP REIN IN THE 20 BILLION ANNUAL MEDICAL CLAIMS RELATED TO WORKERS' COMPENSATION THE HEALTH BILLS OF PEOPLE INJURED ON THE JOB CURRENTLY ARE PAID BY WORKERS' COMPENSATION INSURANCE WHICH EMPLOYERS ARE REQUIRED UNDER STATE LAWS TO PROVIDE THE MEDICAL BILLS OF PEOPLE INJURED IN CAR ACCIDENTS ARE COVERED BY AUTOMOBILE INSURANCE BUT IF ALL AMERICANS HAVE HEALTH INSURANCE UNDER THE NEW HEALTH SYSTEM SOME ADMINISTRATION OFFICIALS CONTEND THAT THAT COVERAGE SHOULD PAY FOR TREATMENT OF ALL INJURIES REGARDLESS OF THE CAUSE ONE OFFICIAL DESCRIBED THE CONCEPT AS 24HOUR COVERAGE BUT HE ADDED THAT ADMINISTRATION HEALTH ADVISERS DISAGREE OVER HOW OR WHETHER SUCH A SYSTEM COULD WORK THE CLINTON ADMINISTRATION IS VERY RECEPTIVE TO LOOKING AT WORKER'S COMPENSATION AS A PIECE OF THE PUZZLE SAID GARY PETTY PRESIDENT OF THE NATIONAL MOVING AND STORAGE ASSOCIATION WHO BACKED THE CHANGE IN DISCUSSIONS WITH TASK FORCE ADVISERS EARLIER THIS WEEK ANY PROPOSAL TO INCLUDE WORKERS' COMPENSATION MEDICAL CLAIMS IN THE PACKAGE WOULD EXCLUDE THE OTHER BIG PIECE OF WORKER COMPENSATION COSTS WAGES PAID TO INJURED EMPLOYEES AND LEGAL COSTS COMBINED THESE TWO COMPRISE ABOUT 60 OF ALL COMPANIES' OBLIGATIONS UNDER WORKERS' COMPENSATION COSTS PEOPLE WHO MET WITH ADMINISTRATION ADVISERS SAID COVERAGE UNDER WORKERS' COMPENSATION IS GENERALLY MORE COMPREHENSIVE THAN COVERAGE FOR NONWORK INJURIES FOR EXAMPLE A WORKER WHO HURTS HIS BACK LIFTING BOXES ON THE JOB WOULD NOT ONLY GET MEDICAL TREATMENT BUT MIGHT ALSO RECEIVE REHABILITATION THERAPY AND TRAINING TO AVOID THE INJURY AGAIN WORKERS' COMPENSATION PAYS FOR ALL THOSE COSTS WHILE MANY HEALTHINSURANCE PLANS CARRY A DEDUCTIBLE AND COPAYMENTS FOR INDIVIDUALS SMALL BUSINESSES WORRY THAT WORKERS' COMPENSATION COSTS ARE SMOTHERING THEM AND AS A RESULT ARGUE THEY CAN'T AFFORD TO OFFER HEALTHCARE BENEFITS MR PETTY IS PRESSING FOR A SYSTEM UNDER WHICH SMALL COMPANIES WOULD PAY FOR HEALTH INSURANCE AND BE EXEMPTED FROM MOST WORKERS' COMPENSATION COSTS LARGER BUSINESSES AREN'T SO SURE MARK STUART A LOBBYIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS IN WASHINGTON SAID HIS GROUP IS STUDYING WHETHER TO SUPPORT THE PLAN THE INSURANCE INDUSTRY PREDICTABLY IS OPPOSED TO THE IDEA CRAIG BERRINGTON GENERAL COUNSEL FOR THE AMERICAN INSURANCE ASSOCIATION SAID HIS GROUP IS OFFERING A PROPOSAL THAT WOULD ALLOW MEDICAL PROVIDERS SIMILAR TO HEALTH MAINTENANCE ORGANIZATIONS TO FOCUS ON WORKERS' COMPENSATION CLAIMS AND HAVE INSURERS LINK UP WITH THOSE QUALIFIED HMOS WORKERS' COMPENSATION IS RUN BY STATES MANY LARGE COMPANIES ARE SELFINSURED SETTING MONEY ASIDE TO PAY THEIR OWN CLAIMS OTHERS INSURE THROUGH LARGE PROPERTY AND CASUALTY COMPANIES AND STILL OTHERS TAP INTO STATERUN PROGRAMS 9303310057 930331 DEMOCRACY FIRST YELTSIN SECOND BY GARRY KASPARVO MOSCOW A BOLD PUSH FOR THE MOST EXTRAORDINARY REFORM IN 70 YEARS HAS LANDED THE NATION'S PRESIDENT IN TROUBLE THE CONSERVATIVE OPPOSITION IS ATTACKING HIM THE RUSSIAN PEOPLE AREN'T SURE WHETHER TO GIVE THEIR LEADER FULL SUPPORT IN WESTERN CAPITALS DIPLOMATS WORRY THAT THE MILITARY WILL INTERVENE WASHINGTON COMES TO THE RESCUE WITH THE PRONOUNCEMENT THAT IT WILL SUPPORT THE LEADER TO SHOW HIS GOODWILL THE US PRESIDENT REITERATES HIS COMMITMENT TO MEET WITH HIS EMBATTLED COUNTERPART AT A COMING INTERNATIONAL SUMMIT SOUND FAMILIAR THE PHRASES ABOVE DESCRIBE PRESIDENT YELTSIN'S POSITION IN RUSSIA TODAY BUT THEY WORK JUST AS WELL TO SKETCH OUT THE POSITION OF MIKHAIL GORBACHEV ONLY TWO YEARS AGO TODAY PRESIDENT CLINTON SUPPORTS PRESIDENT YELTSIN AND TELLS THE WORLD THEY WILL MEET IN CANADA THEN PRESIDENT BUSH SUPPORTED MR GORBACHEV AND ADVERTISED TO THE WORLD THEIR SUMMIT MEETINGS IN FACT BY FOCUSING ON MR YELTSIN NEARLY EXCLUSIVELY THE US MEDIA THE US ADMINISTRATION AND THE WORLD IN GENERAL REPEAT THE MISTAKES OF EARLIER DAYS THEY ARE COUNTING MR YELTSIN MORE IMPORTANT THAN DEMOCRACY ITSELF THE ANALOGY WORKS ON SEVERAL LEVELS CONVENTIONAL WISDOM MAY HOLD THAT BORIS YELTSIN IS A DIFFERENT SORT OF LEADER THAN MIKHAIL GORBACHEV WHILE MR GORBACHEV WAS A MERE TRANSITIONAL FIGURE THE WISDOM GOES MR YELTSIN IS THE DEMOCRATIC PRODUCT OF A DEMOCRATIC ELECTION IN FACT THOUGH THERE ARE SIMILARITIES IN THEIR POWER BASES MR GORBACHEV'S POWER BASE WAS THE OLD NOMENKLATURA MR YELTSIN FIGHTS FOR REFORM YET SIGNIFICANT ELEMENTS OF HIS POWER BASE ARE FROM RUSSIA'S NOMENKLATURA TOO THE NOMENKLATURA THAT SUPPORTS MR YELTSIN INCLUDES THE NEW PRIME MINISTER VIKTOR CHERNOMYRDIN AND YURI LUZKOV THE MAYOR OF MOSCOW THE SECOND SIMILARITY IS THAT MR YELTSIN LIKE MR GORBACHEV HAS BEEN CONSTRAINED IN HIS PROGRESS BY HIS TIES TO AN OLD GUARD UNLIKE HIS PREDECESSOR MR YELTSIN HAS GOTTEN RID OF COMMUNISM ITSELF AS AN IDEOLOGY BUT HE HAS NOT DISMANTLED THE OLD SYSTEM OF SOVIETS OR CENTRALIZED POWER THIS PREVENTS A DEMOCRATIC SEPARATION OF POWERS AS IN AMERICA'S THREEPART SYSTEM IN THE EARLY DAYS AFTER THE AUGUST 1991 COUP ATTEMPT HE PASSED UP CHANCES TO DISMANTLE THE RUSSIAN PARLIAMENT AND TO CALL FOR FULLY DEMOCRATIC ELECTIONS IN RUSSIA LAST FALL HE DROPPED THE STRONGEST MEMBER OF HIS OWN GOVERNMENT PRIME MINISTER YEGOR GAIDAR AND SOME OF THE REFORMS MR GAIDAR STOOD FOR IN THE VAIN HOPE OF GETTING CONCESSIONS FROM THE PARLIAMENT'S RIGHT WING MR YELTSIN IN FACT HELPED TO BRING ABOUT HIS OWN CURRENT TENUOUS SITUATION BECAUSE HIS POLICY DIDN'T DO ENOUGH TO STRENGTHEN RADICAL DEMOCRATIC FORCES THAT COULD HAVE SUPPORTED HIM THE THIRD SIMILARITY BETWEEN MESSRS YELTSIN AND GORBACHEV IS THEIR POPULARITY OUTSIDE RUSSIAN BORDERS IN HIS DAY MR GORBACHEV WAS THE NONSOVIET WORLD'S MOST POPULAR MAN TIME MAGAZINE MADE HIM MAN OF THE YEAR MR YELTSIN HAS NOW REPLACED MR GORBACHEV AS THE PERSONALITY WHO HOLDS WESTERN ATTENTION OF COURSE THERE ARE BIG DIFFERENCES HERE MR GORBACHEV'S POPULARITY ABROAD WAS UNEARNED WHILE MR YELTSIN HAS CLEARLY EARNED GRASSROOTS POPULARITY THROUGH TRULY COURAGEOUS BEHAVIOR IN RUSSIA NEVERTHELESS THE WESTERN FOCUS ON MR YELTSIN'S EVERY MOVE IS DAMAGING WESTERNERS ARE NEGLECTING WHAT SHOULD BE THEIR MAIN FOCUS THE PROGRESS TOWARD DEMOCRACY IN RUSSIA AS A RESULT THE WEST IS FAILING TO TAKE NOTE OF IMPORTANT THINGS HAPPENING IN RUSSIA NOW FOR EXAMPLE THE BROAD ANTICOMMUNIST COALITION IS SPLITTING AND MR YELTSIN IS NO LONGER IN ITS MOST RADICAL PART WHILE MR YELTSIN STILL ENJOYS BROAD SUPPORT THE REAL RUSSIAN FUTURE BELONGS TO THOSE WHO ADVOCATE PROFOUND REFORMS SUCH AS PROPERTY RIGHTS AND DISMANTLING THE SYSTEM OF THE SOVIETS IN PARTICULAR AT THE LOCAL AND REGIONAL LEVELS WESTERN ANALYSTS MAY ARGUE THAT THE ALTERNATIVE TO CLINGING TO THE YELTSIN NAME IS TERRIBLE CHAOS OR A MILITARY COUP THE TRUTH THOUGH IS THAT FOR ONCE THE WEST OVERESTIMATES THE POWER OF ITS OWN INFLUENCE IF MR YELTSIN IS IN TRUE DANGER OF BEING OVERTHROWN WESTERN WORDS OF FRIENDSHIP CAN'T SAVE HIM IF HE IS NOT WESTERN WORDS CAN'T HURT HIM A FINAL PARALLEL BETWEEN THE GORBACHEV AND YELTSIN SITUATIONS IS THAT THEY HAVE BOTH PROVOKED WESTERNERS TO ARGUE FOR MORE AID TO RUSSIA THE BILLIONS THAT WENT TO MR GORBACHEV ONLY PROLONGED HIS UNDEMOCRATIC REGIME FEW KNOW WHERE THE WESTERN FUNDS TRANSFERRED TO SOVIET COFFERS ARE NOW THEY ARE CERTAINLY NOT IN THE HANDS OF AVERAGE CITIZENS MANY MILLIONS OR BILLIONS TO MR YELTSIN WILL NOT HELP RUSSIA'S PROGRESS TOWARD DEMOCRACY IT WOULD BE A MISTAKE TO DEVOTE THIS WEEKEND'S SUMMIT TO THE QUESTION OF AID THERE ARE MANY WAYS OF COURSE IN WHICH MR YELTSIN DOESN'T RESEMBLE MR GORBACHEV THE PRINCIPAL OF THOSE BEING THAT HE WAS DEMOCRATICALLY ELECTED IN ALL CRUCIAL MOMENTS HE HAS TRIED HIS BEST TO COORDINATE HIS EFFORTS WITH THE POPULAR WILL IN ANY CASE ALTHOUGH THE TURMOIL IN RUSSIA IS NOT OVER WE CAN NOTE THAT SOME RESULTS HAVE ALREADY EMERGED THE TWO MOST INFLUENTIAL LEADERS OF THE CONSERVATIVE AND ANTIYELTSIN OPPOSITION PARLIAMENT SPEAKER RUSLAN KHASBULATOV AND VICE PRESIDENT ALEXANDER RUTSKOI HAVE LOST FOR MR YELTSIN HIMSELF THE BEST PLAN IS TO STICK TO THAT MOST IMPORTANT PATH DEMOCRACY IN THAT EFFORT ALL OF US GIVE HIM OUR FULL SUPPORT 9303310056 930331 FINANCING BUSINESS LA QUINTA MOTOR INNS INC LA QUINTA MOTOR INNS INC SAN ANTONIO TEXAS SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 100 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 THE HOTEL OPERATOR SAID IT INTENDS TO USE PROCEEDS TO REFINANCE EXISTING DEBT TO ACQUIRE AN INTEREST IN THREE PARTNERSHIPS WHOSE IDENTITIES WEREN'T DISCLOSED AND FOR GENERAL CORPORATE PURPOSES THE OFFERING WILL BE UNDERWRITTEN BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND BT SECURITIES CORP 9303310055 930331 MERCK OFFERS NEW PLAN ON RESTRICTING ANNUAL PRICE INCREASES BY DRUG FIRMS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERCK & CO IN A PLAN THAT APPEARS TO BE MORE ACCOMMODATING TO THE WHITE HOUSE THAN PREVIOUS INDUSTRY OFFERS IS PROPOSING A PROGRAM THAT WOULD LIMIT THE INCREASE OF EVERY DRUG'S PRICE RATHER THAN JUST THE AVERAGE PRICE OF ALL OF A COMPANY'S DRUGS THE PROPOSAL MADE IN RECENT DAYS TO THE WHITE HOUSE AND TO SEVERAL MEMBERS OF CONGRESS REPRESENTS THE MOST AGGRESSIVE EFFORT YET BY MERCK'S CHAIRMAN AND CHIEF EXECUTIVE P ROY VAGELOS TO LEAD THE DISPARATE MEMBERS OF THE PHARMACEUTICAL INDUSTRY INTO AN AGREEMENT WITH THE CLINTON ADMINISTRATION OVER THE DRUG PRICING ISSUE IN A MEETING WITH SEN DAVID PRYOR D ARK LAST THURSDAY REPORTED IN AN INDUSTRY NEWSLETTER DR VAGELOS OFFERED TO LIMIT THE ANNUAL INCREASES OF ALL PRESCRIPTION DRUGS TO THE RATE OF INFLATION PLUS ONE PERCENTAGE POINT DR VAGELOS ALSO SAID HE WOULD SUPPORT SOME TYPE OF NEW LEGISLATION THAT WOULD ENFORCE DRUG PRICE CONTROLS THE MEETING AND ITS DETAILS WERE CONFIRMED BY MERCK AND BY SEN PRYOR'S OFFICE THE PROPOSAL REPRESENTS A MAJOR POLICY SPLIT BETWEEN DR VAGELOS AND THE PUBLIC POSITION BEING TAKEN BY MOST OF THE PHARMACEUTICAL INDUSTRY'S LEADERSHIP IN RECENT MONTHS THE WHITE HOUSE AND SOME MEMBERS OF CONGRESS HAVE ATTACKED THE PHARMACEUTICAL INDUSTRY FOR EXPLODING DRUG PRICES IN RESPONSE MANY DRUG MAKERS HAVE OFFERED TO LIMIT ANNUAL AVERAGE PRICE RISES OF THEIR PRODUCTS TO THE RATE OF INFLATION THE INITIATIVE BY DR VAGELOS ALTHOUGH ALLOWING FOR A HIGHER ANNUAL RATE OF INCREASE ACTUALLY WOULD BE MORE RESTRICTIVE BECAUSE IT WOULD RESTRICT PRICE INCREASES OF A COMPANY'S INDIVIDUAL PRESCRIPTION MEDICINES NOT JUST THE AVERAGE OF ALL OF A COMPANY'S PRODUCTS AS HAS BEEN PROPOSED WHITE HOUSE AND CONGRESSIONAL STAFFERS HAVE ARGUED THAT SUCH VOLUNTARY PLEDGES ARE UNACCEPTABLE AND THAT SOME TYPE OF ENFORCEMENT OF THE PRICE CONTROL PLEDGES WOULD BE NEEDED THE GOVERNMENT OFFICIALS ALSO HAVE ARGUED THAT THE INDUSTRY'S PROMISE WOULD STILL ALLOW COMPANIES TO RAISE THE PRICE OF INDIVIDUAL DRUGS WELL ABOVE THE RATE OF INFLATION MERCK'S NEW OFFER IS MORE IN LINE WITH WHAT THE WHITE HOUSE WOULD FIND ACCEPTABLE SAID ONE GOVERNMENT STAFFER FAMILIAR WITH MERCK'S OFFER EXACTLY WHAT FORM NEW LEGISLATION MIGHT TAKE HOWEVER IS STILL A MATTER TO BE DISCUSSED THE CLINTON ADMINISTRATION FOR ITS PART MAY BE OPEN TO A COMPROMISE ON PRICE CONTROLS IRA MAGAZINER A TOP HEALTHCARE ADVISER TO PRESIDENT CLINTON EXPRESSED DISTASTE FOR MANDATORY GOVERNMENT CONTROLS ON MEDICAL PRICES HE ADDED THOUGH THAT ALLOWING HEALTH COSTS TO CONTINUE TO SPIRAL ISN'T A VERY PLEASANT ALTERNATIVE EITHER OFFICIALS AT SEVERAL LARGE COMPANIES WERE UNAVAILABLE TO COMMENT ON MERCK'S POSITION BUT A SPOKESMAN FOR THE INDUSTRY'S TRADE GROUP THE PHARMACEUTICAL MANUFACTURERS' ASSOCIATION SAID ITS BOARD STILL HOPED THAT PRICE CONTROLS WOULD BE VOLUNTARY AND NOT INCLUDE ENFORCING LEGISLATION DESPITE PUBLIC DENIALS THE MERCK INITIATIVE MAY PRODUCE AN ACCEPTABLE COMPROMISE BETWEEN THE DRUG INDUSTRY AND THE CLINTON ADMINISTRATION SEVERAL DRUG COMPANY OFFICIALS PRIVATELY SAID MOST ASPECTS OF MERCK'S PROPOSAL WOULD BE ACCEPTABLE TO MANY IN THE DRUG INDUSTRY DR VAGELOS HAS ALWAYS BEEN AMONG THE MOST PROGRESSIVE LEADERS IN THE PHARMACEUTICAL INDUSTRY WE VERY MUCH RESPECT HIS VIEWS ON HEALTHCARE REFORM AND WELCOME HIS CONTRIBUTIONS TO DEBATE SAID ROBERT BOORSTIN SPOKESMAN FOR THE HEALTHCARE TASK FORCE IF WE COULD GET AN AGREEMENT ALLOWING PRICES TO RAISE ONE POINT ABOVE INFLATION I THINK A LOT OF THE COMPANIES WOULD GO ALONG SAID A LOBBYIST FOR ONE OF THE BIG DRUG MAKERS UNDER MERCK'S PROPOSAL COMPANIES WOULD SIGN AGREEMENTS PROMISING TO RAISE PRICES EACH YEAR NO HIGHER THAN ONE PERCENTAGE POINT ABOVE THE CONSUMER PRICE INDEX UNDER THE PROPOSED PLAN DRUG COMPANIES WOULD HAVE PRICES VERIFIED BY INDEPENDENT ACCOUNTANTS BUT IN A PART OF THE PROPOSAL THAT MIGHT REQUIRE LEGISLATION THE MERCK PROPOSAL SUGGESTS THAT THE GOVERNMENT MIGHT SET UP A MONITORING BOARD OR USE AN EXISTING GOVERNMENT AGENCY TO AUDIT THE PRICE INCREASES IN RECENT WEEKS MANY DRUG COMPANY OFFICIALS HAVE BEGUN AGGRESSIVELY LOBBYING CONGRESS AND HAVE HIRED PUBLIC RELATIONS SPECIALISTS TO COUNTER ATTACKS BUT INDUSTRY SOURCES HAVE SAID THAT DR VAGELOS HAS BEEN ESPECIALLY ACTIVE IN COBBLING A PROPOSAL ACCEPTABLE TO WASHINGTON HOPING THAT HE WILL FORCE THE REST OF THE INDUSTRY TO FOLLOW ALONG LAST WEEK MERCK MADE NATIONAL NEWS WHEN IT SAID IT WOULD LAY OFF ABOUT 26 OF ITS EMPLOYEES AND THAT ITS 1993 EARNINGS WOULD BE DAMPED BY PRESSURES ON DRUG PRICING THE NEXT DAY ACCORDING TO THE PINK SHEET A NEWSLETTER PUBLISHED BY FDC REPORTS CHEVY CHASE MD DR VAGELOS MET WITH SEN PRYOR IN A MEETING SET UP BY SEN BILL BRADLEY D NJ SEN BRADLEY IS A LONGTIME SUPPORTER OF DRUG INDUSTRY CONCERNS AS MANY DRUG COMPANIES ARE BASED IN HIS STATE SEN PRYOR A CLOSE ALLY TO PRESIDENT CLINTON HAS BEEN A LONGTIME CRITIC OF THE DRUG INDUSTRY CHARGING THAT PRICES HAVE RISEN ON AVERAGE BY ABOUT THREE TIMES THE RATE OF INFLATION DURING THE 1980S SOME INDUSTRY OBSERVERS BELIEVE MERCK'S LAYOFF ANNOUNCEMENT WAS TIMED TO ELICIT CONCERN THAT RESTRICTIVE PRICE CONTROL LEGISLATION WOULD SEVERELY DAMAGE DRUG MAKERS INDEED THE SAME DAY DR VAGELOS MET WITH SEN PRYOR HE AND TOP EXECUTIVES FROM SIX NEW JERSEY DRUG COMPANIES MET WITH THEIR STATE'S CONGRESSIONAL DELEGATION THE DELEGATION WAS VERY SYMPATHETIC TO OUR CONCERNS SAID HERBERT CONRAD PRESIDENT OF HOFFMANNLA ROCHE INC'S US PHARMACEUTICAL BUSINESS BUT THEY SUGGESTED WE'D DO BEST BY PROPOSING AN ACCEPTABLE PRICING PLAN THAN WAIT FOR THE ADMINISTRATION TO COME OUT WITH ONE WHILE THE DRUG INDUSTRY MAY AGREE TO MANY PARTS OF THE VAGELOS PLAN MANY INDUSTRY LEADERS HAVEN'T BEEN HAPPY WITH DR VAGELOS'S AGGRESSIVE ACTION COMPANY OFFICIALS COMPLAIN THAT MERCK IS MUCH BETTER POSITIONED TO WITHSTAND PRICING LIMITS THAN ITS COMPETITORS BECAUSE MERCK HAS AN UNUSUALLY BROAD ARRAY OF PRODUCTS BUT COMPANY EXECUTIVES CONCEDE THE REST OF THE INDUSTRY MAY FIND IT DIFFICULT TO FIGHT MERCK IF THE VAGELOS PLAN APPEARS ACCEPTABLE TO THE CLINTON ADMINISTRATION 9303310054 930331 HEARD ON THE STREET AS BIG THREE AUTO MAKERS IDLE PARTS FIRMS SUPPLIERS PEEL OUT BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AUTOPARTS SUPPLIERS ARE BURNING UP THE TRACK IN THE STOCK MARKET AND SOME ARE STILL CHEAP ENOUGH TO HITCH A RIDE ON THAT'S THE VIEW OF SOME INVESTORS WHO SAY THAT EVEN IF THE BIG THREE AUTO MAKERS' SHARES ARE GOING NOWHERE LATELY THE STOCKS OF THEIR SUPPLIERS ARE LIKELY TO ACCELERATE EVEN IF THE CAR SALES REBOUND IS SLUGGISH THESE BULLS SAY HIGHER EARNINGS AND SALES ARE EXPECTED THIS YEAR AND NEXT FOR A HOST OF COMPANIES THAT SUPPLY CHRYSLER FORD MOTOR AND GENERAL MOTORS WITH HEAVYDUTY COMPONENTS FROM DRIVE SHAFTS TO DOOR PANELS SUCH AS ABS INDUSTRIES AND DANA CORP COMPANIES THAT MAKE PARTS FOR USED CARS SUCH AS ECHLIN ARE CATCHING INVESTORS' EYES TOO AUTO PARTS AND SUPPLY COMPANIES ARE SEEING THE FRUITS OF COSTREDUCTION PROGRAMS IMPLEMENTED OVER THE PAST TWO YEARS SAYS JAMES ALEXANDRE VICE PRESIDENT AT DONALDSON LUFKIN & JENRETTE HE ALSO NOTES THAT OUTSOURCING IS A TREND THAT'S GROWING TODAY GM'S BIG FORGING OPERATIONS ARE UP FOR SALE FOR EXAMPLE AND RECENTLY RECEIVED VISTS FROM DANA AND MASCO CORP ADDS CHARLES LARSEN MANAGING DIRECTOR IN CHARGE OF TRUST CO OF THE WEST'S SMALLSTOCK EFFORT SMALLER SUPPLIERS HAVE A MORE FOCUSED EFFORT AND CAN BE LOWERCOST PRODUCERS THAN THE BIG THREE AUTO MAKERS SOME INVESTORS ARE MORE INTERESTED IN PARTS COMPANIES AS A BETTER WAY TO PLAY A BROADBASED IMPROVEMENT IN THE AUTO INDUSTRY WITHOUT HAVING TO BE SKEWED TO ANY AUTO MAKER SAYS THOMAS GALVIN ANALYST AT CJ LAWRENCE NEW CAR SALES ARE ANEMIC SO THERE'S SOME RISK IN ANY STOCK RELATED TO THE AUTO INDUSTRY THE AUTO CYCLE IS RECOVERING BUT IT IS MUCH WEAKER THAN WHAT HISTORICALLY HAS BEEN THE CASE SAYS GARY MCMANUS SENIOR VICE PRESIDENT AT KEMPER SECURITIES HE ALSO WORRIES THAT TAX INCREASES COULD SAP CONSUMER CONFIDENCE AND CURB SPENDING ON BIG TICKET ITEMS BUT AS LONG AS SALES ARE GROWING ANALYSTS SAY PARTS COMPANIES AND SUPPLIERS HAVE THE OPERATING EFFICIENCIES TO MAKE BIG BUCKS THE BIG THREE BEAT UP ON THE SUPPLIERS FOR SEVERAL YEARS TELLING THEM TO HOLD DOWN PRICE INCREASES THAT FORCED MANY OF THESE COMPANIES TO CUT THEIR OWN COSTS FOR A GENERAL PLAY ON THE AUTO CYCLE MR LARSEN OF TRUST CO OF THE WEST LIKES ABS INDUSTRIES WHICH TRADES ON NASDAQ THE WILLOUGHBY OHIO FORGING COMPANY MAKES SUSPENSION TRANSMISSION AND DRIVE PARTS AND TRAILER HITCHBALLS I AM INTRIGUED WITH WHAT THEY ARE DOING THEY'VE HAD TERRIFIC REVENUE INCREASES AND THEY ARE ADDING TO CAPACITY SAYS MR LARSEN ABS RUNS ITS FORGES ROUND THE CLOCK SEVEN DAYS A WEEK HAMMERING OUT HARD STEEL SHAFTS MAINLY THAT TURN GEARS AND WHEELS IN A VARIETY OF CARS AND TRUCKS MADE BY THE BIG THREE THE COMPANY HAS PLENTY OF COMPETITORS BUT ABS'S ORDER BACKLOG STANDS AT A RECORD HIGH JOHN DIFFENDAL DIRECTOR OF RESEARCH AT JC BRADFORD SAYS THE COMPANY COULD EARN AS MUCH AS 2 A SHARE IN THE YEAR ENDING OCT 31 IF THE FORECAST HOLDS TRUE THE STOCK AT YESTERDAY'S 16 1/2 OFF 1/2 IS TRADING AT ONLY ABOUT 85 TIMES ESTIMATED EARNINGS MEANWHILE SALES ARE EXPECTED TO GROW TO 70 MILLION THIS YEAR FROM 54 MILLION LAST YEAR AND COULD POSSIBLY LEAP ABOVE 90 MILLION IN FISCAL 1994 ABS'S BIGGEST CHALLENGE MR DIFFENDAL CAUTIONS IS MANAGING GROWTH THEY HAVE TO DEMONSTRATE THE RAMPUP OF REVENUES CAN BE HANDLED AND PROFITABLY BE DELIVERED TO THE BOTTOM LINE HE SAYS MR ALEXANDRE THE DONALDSON LUFKIN ANALYST SUGGESTS INVESTORS TAKE A LOOK AT MASCO INDUSTRIES AN ABS COMPETITOR MASCO SHARES JUMPED 5/8 ON NASDAQ YESTERDAY TO 16 5/8 A 12MONTH HIGH AFTER CHAIRMAN RICHARD MANOOGIAN SAID THE COMPANY BELIEVES FIRSTQUARTER EARNINGS WILL DOUBLE TO 20 CENTS A SHARE HE ESTIMATED SALES WOULD RISE AT LEAST 10 TO 12 FROM A YEAR EARLIER THE EXECUTIVE SUGGESTED THAT 1993 PERSHARE EARNINGS COULD RISE ABOVE THE 1988 RECORD OF 90 CENTS THE I/B/E/S CONSENSUS SHOWS ANALYSTS EXPECT THE TAYLOR MICH METALWORKING COMPANY TO EARN 87 CENTS A SHARE THIS YEAR AND 137 A SHARE IN 1994 WE THINK MASCO HAS EXCELLENT LEVERAGE ON AN IMPROVEMENT IN AUTO DEMAND MR ALEXANDRE SAYS AS PREVIOUSLY REPORTED THE COMPANY'S BIG SHAREHOLDER MASCO CORP IS MOVING TO REDUCE ITS STAKE IN MASCO INDUSTRIES TO 35 FROM 46 ANOTHER SOMEWHAT MORE DIVERSIFIED SUPPLIER IS DANA CORP THE TOLEDO OHIO MAKER OF AXLES UNIVERSAL JOINTS DRIVE SHAFTS TRUCK FRAMES AND OTHER EQUIPMENT THE COMPANY BENEFITS FROM STRONG DEMAND FOR LIGHT TRUCKS AND IN THAT SECTOR DANA'S MARKET SHARE IS EXPANDING SAYS MR GALVIN OF CJ LAWRENCE HE SAYS THE STOCK COULD RUN TO 60 IN THE NEXT 12 TO 18 MONTHS FROM YESTERDAY'S CLOSE OF 46 1/8 UNCHANGED ON THE DAY THE STOCK IS TRADING AT AROUND 17 TIMES HIS 1993 ESTIMATE OF 270 A SHARE BUT MR GALVIN EXPECTS 1994 EARNINGS TO GROW 37 FROM 1993 ALSO THE STOCK BOASTS A 34 DIVIDEND YIELD ABOUT 40 OF DANA'S BUSINESS IS REPLACEMENT PARTS WHICH HELPS TO BUFFER EARNINGS AGAINST THE CYCLICAL SWINGS OF AUTO MAKERS IF INVESTORS WANT TO STAND EVEN FURTHER AWAY FROM THE CYCLICAL FORTUNES OF THE BIG THREE THEY MIGHT WANT TO TAKE A LOOK AT AN AUTO PARTS COMPANY SUCH AS ECHLIN MAKER OF BRAKE SYSTEMS AND OTHER REPLACEMENT PARTS FOR CARS SHARES OF THE BRANFORD CONN COMPANY WERE UNCHANGED AT 23 1/8 PARTS COMPANIES ARE BENEFITING FROM AN OPERATING ENVIRONMENT CHARACTERIZED BY HIGHER UNIT VOLUMES AND BETTER PROFIT MARGINS SAYS JOSEPH SALERNO ANALYST AT GABELLI & CO THE BROKERAGE ARM OF GAMCO INVESTORS WHICH OWNS A LARGE STAKE IN ECHLIN MR ALEXANDRE OF DONALDSON LUFKIN THINKS ECHLIN CAN EARN 145 A SHARE IN ITS CURRENT FISCAL YEAR ENDING IN AUGUST WHICH GIVES THE STOCK A MULTIPLE OF ABOUT 16 TODAY HE EXPECTS EARNINGS TO RISE TO 175 A SHARE IN FISCAL 1994 NOT EVERY STOCK PICK IN THE GROUP REPRESENTS AN OVERALL BET ON THE AUTO CYCLE SOME COMPANIES DEPEND HEAVILY ON THE LATEST SALES TREND OR STYLE TREND A COMPANY MAY OFFER SOME IMMUNITY TO THE AUTO SALES CYCLE BUT BE VULNERABLE TO INNOVATION BY COMPETITORS OR CHANGES IN DEMAND AT THE BIG THREE ONE SUCH COMPANY IS GENTEX OF ZEELAND MICH WHICH HOLDS PATENTS FOR REARVIEW MIRRORS THAT DIM AUTOMATICALLY GENTEX'S STOCK IS UP NEARLY 40 THIS YEAR THE STOCK GAINED 1/2 TO 29 3/4 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 9303310053 930331 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY GAUTAM NAIK CELLULAR FIRMS BESET BY CLASHING STATE AND LOCAL RULES SEEK TAX UNIFORMITY MCCAW CELLULAR COMMUNICATIONS NOTES THAT CALIFORNIA WASHINGTON UTAH AND LOUISIANA TAX THE VALUE OF THE FEDERAL OPERATING LICENSE WHICH CAN BE LARGE BUT SOME OTHER STATES DON'T CITIES DEBATE WHETHER SALES TAXES SHOULD BE IMPOSED AT A CALL'S POINT OF ORIGIN DESTINATION OR WHERE A PHONE IS REGISTERED AND SOME STATES EYE CELLULAR FIRMS' BOOMING GROWTH AS AN ADDITIONAL REVENUE SOURCE WASHINGTON DC'S MAYOR HAS PROPOSED A SALES TAX ON CELLULAR SERVICES WHICH WOULD RAISE A TOTAL OF 36 MILLION IN 1993 AND 1994 A GROSS RECEIPTS TAX RATE IN FLORIDA HAS GROWN 40 TO 25 IN THE LAST THREE YEARS CELLULAR FIRMS' FONDEST HOPE IS THAT THEY'LL GET SOME PREDICTABILITY WHETHER THEY GET A LOWER BURDEN OR NOT SAYS SANDI SWARTHOUT A WASHINGTON STATE REVENUE OFFICIAL CELLULAR FIRMS COMPLAIN THAT OLD TAX LAWS UNFAIRLY LUMP THEM WITH OTHER TELECOMMUNICATIONS FIRMS AND DON'T ACKNOWLEDGE THEIR SINGULAR TECHNOLOGY AND DIFFERENT DEPRECIATION RATES USERS OF SPECIALIZED MOBILE RADIO A COMPETITOR TO CELLULAR SERVICES DON'T PAY A 3 FEDERALEXCISE TAX GIVING THEM AN EDGE SAYS A CELLULARINDUSTRY OFFICIAL OLD RULES COULD BE NEW NEWS FOR SOME UNEMPLOYED FOLK MANY OF 1992'S 92 MILLION UNEMPLOYMENT BENEFIT RECIPIENTS DON'T REALIZE THEY OWE INCOME TAXES ON THE BENEFITS SAYS MARVIN WEISBROD OF TRIPLE CHECK INCOME TAX SERVICE BURBANK CALIF FREELANCE INCOME IS TAXABLE AND THOSE WHO WORKED AS INDEPENDENT CONTRACTORS HAVE TO SHELL OUT 153 FOR SOCIAL SECURITY JOB SEARCH EXPENSES ARE DEDUCTIBLE IF RELATED TO THE SAME LINE OF WORK PART OF CHILDCARE COSTS CAN BE TAKEN AS A CREDIT BUT ONLY IF YOU EARNED AN INCOME TAX ADVISER JANET DRAHEIM SAYS HALF OF HER CLIENTS WHO RECEIVED JOBLESS BENEFITS WERE SHOCKED AT THEIR TAX BILLS THOSE WHO GET A LUMP SUM PENSION PAYMENT FROM A FORMER EMPLOYER MUST PAY TAXES AND FACE A 10 PENALTY UNLESS THE MONEY IS ROLLED OVER INTO AN IRA OR ANOTHER PENSION PLAN WITHIN 60 DAYS THOSE OVER AGE 59 1/2 PAY THE TAX BUT NOT THE PENALTY THE JOBLESS WITH HIGH PREVIOUS SALARIES BUT CURRENT INCOME UNDER 100000 CAN DEDUCT PAST SUSPENDED LOSSES ON REALESTATE RENTALS FROM CURRENT INCOME UNCLE SAM WILL ACCEPT YOUR PLASTIC IF A NEW LAW PASSES A BILL ENABLING PAYMENT OF FEDERAL TAXES WITH CREDIT OR DEBIT CARDS IS LIKELY TO BE ATTACHED TO CLINTON'S TAX PACKAGE AND ENACTED BY AUGUST CONVENIENCE HIGHER TAX REVENUES AND BETTER COMPLIANCE ARE THE GOALS THE IRS SAYS HR 13 PROPOSED BY DAN ROSTENKOWSKI D ILL IS VIRTUALLY THE SAME AS A 1992 BILL VETOED BY PRESIDENT BUSH BUT HAS BETTER PROSPECTS THE TREASURY HAS SIGNALED ITS SUPPORT CREDITCARD COMPANIES LIKE THE IDEA BUT DON'T WANT THE IRS TO PASS PROCESSING COSTS TO TAXPAYERS IN THE FORM OF A FEE VISA AND MASTERCARD'S MAIN CONCERN IS THAT TAX PAYMENTS OWED TO THEM COULDN'T BE DODGED BY CUSTOMERS WHO LATER ENTER CHAPTER 7 BANKRUPTCY PROTECTION CHAPTER 7 RIDS A CUSTOMER OF THE ONUS OF REPAYMENT THEY ARE SUPPORTING A BANKRUPTCY REFORM BILL THAT PREVENTS SUCH DEBTS FROM BEING DISMISSED HR 13 ALLAYS A KEY PRIVACY CONCERN BY NOT ALLOWING CREDITCARD ISSUERS TO USE TAX DATA FOR MARKETING PURPOSES EVEN IF THE BILL PASSES THE CREDITCARD OPTION WON'T BE AVAILABLE TILL AFTER 1994 WHILE THE IRS WRITES RULES SOFTWARE DRIVEN THE UBIQUITOUS PC IS PUSHING SALES OF TAXPREPARATION SOFTWARE UNIT SALES IN 1992 ROSE 33 TO TWO MILLION NEW TAX LAWS WILL PROPEL 1993 SALES TO 25 MILLION UNITS SAYS LINK RESOURCES NEW YORK REVENUE ROSE 24 TO 72 MILLION THE SOFTWARE PUBLISHERS ASSOCIATION SAYS FULL MOON FEVER A TAX COURT JUDGE SAID TAX ATTORNEY MICHAEL ZADAN FRAUDULENTLY DIDN'T FILE FEDERAL INCOME TAX RETURNS FOR TWO YEARS MR ZADAN BLAMED HIS BEHAVIOR PARTLY ON THE LUNAR CYCLE BUT THE COURT SAID THERE WAS NO PROOF OF HIS MENTAL STATE AND HE HAD CONTINUED TO WORK AT LEAST 10 CALIFORNIA COUNTIES ASSESS PERSONALPROPERTY TAX ON MECHANICS BARBERS AND DOG GROOMERS WHO USE THEIR OWN TOOLS AT WORK SAN BERNARDINO COUNTY ASSESSED 2500 PEOPLE LAST YEAR CAN A LOTTERY PLAYER PUT HIS MONEY WHERE HIS MOUTH IS ROY STEWART OF STEUBENVILLE OHIO WON 13 MILLION IN A 1989 LOTTERY PAYABLE IN 20 ANNUAL INSTALLMENTS OF 650000 THAT YEAR MR STEWART CLAIMED 35 HIS DAUGHTER 25 AND HER FOUR CHILDREN 10 EACH MR STEWART DIED IN 1990 HIS ESTATE PAID 450000 THE AMOUNT DUE ON HIS 35 OF THE TAKE BUT THE IRS SAID MR STEWART WAS THE SOLE WINNER AND WANTS 2 MILLION MORE IN GIFT AND ESTATE TAXES COMPUTED ON THE 13 MILLION THERE WAS NO WRITTEN AGREEMENT BUT THE ESTATE ATTORNEY ROBERT KOPF SAYS MR STEWART HAD A LONGSTANDING ORAL PACT TO SHARE LOTTERY WINNINGS WITH HIS HEIRS WHO LIVE IN CALIFORNIA THE IRS HOWEVER BELIEVES THE HEIRS CONCOCTED THE STORY TO AVOID HIGHER TAXES AFTER THE LOTTERY WAS WON SAYS MR KOPF THE ESTATE HAS SUED THE IRS IN TAX COURT FOR THE IRS TO WIN THE COURT WOULD HAVE TO DECIDE THE FAMILY WAS LYING BUT THE BURDEN OF PROOF RESTS WITH THE CLAIMANTS THE HEIRS WILL ALTERNATIVELY ARGUE THAT AN ORAL PARTNERSHIP UNDER OHIO LAW ENTITLES EACH PARTY TO ONESIXTH OF THE WINNINGS ALSO REDUCING THE IRS CLAIM BRIEFS A 1 TAX ON CAT AND DOGFOOD DISTRIBUTORS IS PROPOSED IN MINNESOTA TO FUND A SPAYING AND NEUTERING PROGRAM CRYING FOWL IRSAUDITED FOLK CAN GET A FREE CHICKEN FROM EMPIRE KOSHER POULTRY UNEMPLOYMENTBENEFIT RECIPIENTS WHO GET A LUMPSUM PENSION PAYMENT FROM A FORMER EMPLOYER AND ARE UNDER AGE 59 1/2 PAY A 10 PENALTY IN ADDITION TO INCOME TAX UNLESS THE MONEY IS ROLLED OVER INTO AN INDIVIDUAL RETIREMENT ACCOUNT OR ANOTHER PENSION PLAN WITHIN 60 DAYS THE TAX REPORT COLUMN YESTERDAY INCORRECTLY INDICATED THAT THOSE OVER 59 1/2 PAY THE PENALTY 9303310052 930331 CORPORATE FOCUS SUNTRUST BANKS PLODS ITS WAY ALONG TO STRONG RESULTS CONSERVATIVE STRATEGY LEAVES IT DWARFED IN SIZE BUT NOT IN RETURNS BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA AS ITS SOUTHEASTERN COMPETITORS GOBBLE UP BANKS AT A NEAR FRENZIED PACE SUNTRUST BANKS INC CONTENTS ITSELF WITH WATCHING FROM THE WINGS IN RECENT MONTHS AS ITS AGGRESSIVE PEERS NATIONSBANK CORP AND FIRST UNION CORP CONTINUE A PATH OF STRATEGIC EXPANSIONS SNAPPING UP BANKS AROUND WASHINGTON AND MARYLAND WITH BILLION DOLLAR PRICE TAGS THE BANKING CONCERN HAS PICKED UP THREE LITTLE BANKS AND A SAVINGS AND LOAN FOR A MERE 175 MILLION SUNTRUST'S ACQUISITIONS WHICH CLOSED IN THE CURRENT QUARTER ARE PEANUTS BY SUPERREGIONAL BANKING YARDSTICKS YET CONSTITUTE THE MOST BUYOUT ACTIVITY IT HAS DONE IN A LONG TIME AS A RESULT OF THIS CONSERVATIVE STRATEGY SUNTRUST TODAY IS DWARFED IN SIZE BY ITS EXPANSIONMINDED RIVALS AND ITS MARKET REACH IS MUCH NARROWER IT WILL SOON FALL TO THIRD PLACE IN DEPOSIT SHARE IN ITS HOME MARKET OF ATLANTA ALL OF WHICH HAS LEFT MANY TO WONDER WHETHER THESE GUYS ARE A LITTLE BACKWARD CONCEDES SUNTRUST'S CHAIRMAN AND CHIEF EXECUTIVE JAMES B WILLIAMS ANY WORRIES HOWEVER ARE LIKELY TO BE EASED BY A LOOK AT THE COMPANY'S STRONG FINANCIAL PERFORMANCE SUNTRUST HAS NEVER REPORTED A LOSS OR EVEN A DOWN YEAR IN 1992 EARNINGS TOTALED 4133 MILLION OR 328 A SHARE A 13 INCREASE IN PERSHARE EARNINGS FROM 1991 THE COMPANY RANKED FIFTH AMONG THE 25 LARGEST US BANKS WITH A 121 RETURN ON ASSETS A KEY MEASURE OF BANK PROFITABILITY AND HAD THE EIGHTHLOWEST LEVEL OF TROUBLED ASSETS THUS DESPITE THE PASSAGE OF SIX YEARS SINCE SUNTRUST'S MOST RECENT MAJOR ACQUISITION THE COMPANY APPEARS BENT ON PROVING THAT STAYING SMALLER FOCUSED AND ESSENTIALLY BORING CAN WORK JUST AS WELL AS HEADLINEGRABBING MERGERS EVERYBODY'S RUSHING TO GET EVERYTHING THAT COMES DOWN THE PIKE SAYS MR WILLIAMS WE'RE JUST GOING TO TAKE A SOLID CONSERVATIVE APPROACH AND WE'LL GET THERE IN THAT VEIN MR WILLIAMS INSISTS THAT THERE IS ABSOLUTELY NOTHING TO RECENT SPECULATION ON WALL STREET THAT SUNTRUST HAS TALKED WITH WACHOVIA CORP OF WINSTONSALEM NC ABOUT A POSSIBLE COMBINATION WACHOVIA SHARES A SOMEWHAT SIMILAR CULTURE AND BOASTS EVEN BETTER PROFITABILITY PERENNIAL SPECULATION SIMILARLY HE SAYS SUNTRUST HAS NO CURRENT PLANS TO ACQUIRE AMSOUTH BANCORP OF BIRMINGHAM ALA WHICH HAS RECENTLY AND PERENNIALLY BEEN SPECULATED TO BE IN SUNTRUST'S SIGHTS THE BANK WON'T RULE OUT ANY OPTIONS DOWN THE ROAD INCLUDING A POSSIBLE STRATEGIC MEGAMERGER BUT THE COMPANY FEELS NO PRESSURE TO DO SO AND ITS FOCUS REMAINS CLEAR ITS MANAGERS DON'T GIVE A HOOT ABOUT BIGNESS ONLY PROFITS SUNTRUST STICKS TO THE BASICS OF BANKING IT FOCUSES ON MAKING CONSERVATIVELY UNDERWRITTEN LOANS TO QUALITY BUSINESSES AND ON EXPANDING ITS LARGE TRUST BUSINESS ALREADY THE BIGGEST IN FLORIDA GEORGIA AND TENNESSEE SUNTRUST ALSO KEEPS A TIGHT REIN ON EXPENSES INDEED PART OF THE COMPANY'S REASON FOR SIDESTEPPING ACQUISITIONS HAS BEEN ITS RELUCTANCE TO PAYING A PREMIUM FOR ANOTHER BANK AND THUS DILUTING PERSHARE EARNINGS SUNTRUST IS COMFORTABLE WITH A CONSENSUS EARNINGS ESTIMATE OF 363 A SHARE THIS YEAR WITH A LITTLE LESS THAN ONEFOURTH OF THAT THIS QUARTER ANOTHER PART OF THE COMPANY'S AVERSION TO MERGERS IS THE FACT THAT IT WAS BADLY BURNED IN ITS ACQUISITION OF THIRD NATIONAL CORP IN NASHVILLE IN 1986 IRONICALLY SUNTRUST HAD BEEN THE FIRST OUT OF THE GATE WHEN THE SOUTHEAST ADOPTED A REGIONAL INTERSTATE BANKING COMPACT TRUST CO OF GEORGIA AGREED TO COMBINE WITH SUN BANKS INC IN ORLANDO FLA A YEAR BEFORE THE LAW ALLOWED THE DEAL TO BE CONSUMMATED IN 1985 THE MERGER WENT WELL AS THE GEORGIA BANKERS GRADUALLY HELD SWAY OVER THEIR FLORIDA COUNTERPARTS TO ABANDON THEIR SPORTIER LENDING PRACTICES IN FAVOR OF CONSERVATISM BUT THIRD NATIONAL SUNTRUST'S NEXT BIG DEAL A YEAR LATER TURNED INTO A NIGHTMARE ALMOST IMMEDIATELY THE TENNESSEE ECONOMY SOURED BURDENING THIRD NATIONAL WITH A PILE OF BAD REALESTATE AND COMMERCIAL LOANS THAT TOOK YEARS TO CLEAN UP IT WASN'T UNTIL 1992 THAT EXECUTIVES FINALLY FOUND THE BANK'S PERFORMANCE PASSABLE SUNTRUST'S RESTRAINED APPROACH TO EXPANSION IS REALLY A REFLECTION OF ITS LARGER CONSERVATIVE STYLE ITS STRICT LENDING CRITERIA HELPED IT WITH THE EXCEPTION OF INHERITED PROBLEMS IN TENNESSEE TO LARGELY DODGE THE REALESTATE LENDING DEBACLE OF THE LATE 1980S THANKS TO ITS DECISION TO OPT FOR STOCK IN COCACOLA CO FOR TAKING THE SOFTDRINK COMPANY PUBLIC IN 1919 SUNTRUST OWNS MORE THAN 1 BILLION OF ITS SHARES INDEED THE BANK IS SO STRONGLY CAPITALIZED THAT SOME INDUSTRY EXPERTS SAY IT IS ALMOST OVERCAPITALIZED CAUTION CERTAINLY CARRIES ITS OWN PRICE MOST OFTEN IN THE WAY OF MISSED OPPORTUNITY SUNTRUST'S TIMID BID FOR SOUTHEAST BANK IN MIAMI IN 1991 FOR INSTANCE LEFT IT EDGED OUT BY THE MOREAGGRESSIVE FIRST UNION WHICH HAS REAPED BIG COST SAVINGS BY COMBINING OPERATIONS WITH ITS EXISTING FLORIDA BANK AND THOUGH SIZE ISN'T EVERYTHING IT IS SOMETHING AND SUNTRUST IS GETTING LEFT BEHIND THE PACK IN ASSET GROWTH IN 1987 FOR INSTANCE SUNTRUST WAS NEARLY THE SAME SIZE AS NCNB WHICH LATER MERGED WITH C&S/SOVRAN TO FORM NATIONSBANK AND FIRST UNION IN ASSETS TODAY ITS 35 BILLION IN ASSETS IS DWARFED BY NATIONSBANK'S 117 BILLION AND FIRST UNION'S 63 BILLION BUT WHATEVER THE DRAWBACKS OF ITS STODGY STYLE FEW PREDICT THE BANK'S STRATEGY WILL EVENTUALLY BACKFIRE SUNTRUST'S APPROACH IS A DIFFERENT ONE SAYS RICHARD E THORNBURGH A MANAGING DIRECTOR OF FIRST BOSTON CORP BUT IT IS A VALID ONE AND THE MARKETPLACE DOESN'T SEEM TO PENALIZE THEM FOR IT DESPITE ITS MODEST GROWTH SUNTRUST ISN'T GENERALLY REGARDED AS A TAKEOVER TARGET PRIMARILY BECAUSE ITS HIGH MARKET CAPITALIZATION OF 58 BILLION WOULD MAKE IT DIFFICULT TO ACQUIRE ON AN UNFRIENDLY BASIS THE BANK'S SAVING GRACE HAS BEEN THAT IT IS SO GOOD AT WHAT IT DOES ITS TRUST OPERATIONS FOR INSTANCE PRODUCED 2246 MILLION IN FEES LAST YEAR A 128 INCREASE ACCORDING TO SEI FUNDS EVALUATION SERVICE SUNTRUST'S CORPORATE EQUITY FUND WHICH MANAGES PENSIONS OUTPACED 99 OF THE COMPETITION OVER A 10YEAR TIME FRAME WITH AN ANNUALIZED RATE OF RETURN OF 231 DESPITE AN OFF YEAR IN 1992 WHEN ITS RETURN WAS 68 THE BANK RECENTLY PARLAYED ITS INVESTMENT ACUMEN INTO A FAMILY OF MUTUAL FUNDS AFTER STUDYING THE ISSUE INTERMITTENTLY FOR MORE THAN FIVE YEARS ITS BESTKNOWN MONEY MANAGER TONY GRAY WHO HAS MANAGED THE CORPORATE EQUITY FUND SINCE 1979 IS OVERSEEING THE NEW STI CLASSIC CAPITAL GROWTH FUND SALES OF THE FUNDS ARE AHEAD OF PROJECTIONS AND MR WILLIAMS CONCEDES HE NOW WISHES THE BANK HADN'T BEEN SO CHARACTERISTICALLY SLOW AND DELIBERATE IN ENTERING THE MUTUAL FUND BUSINESS I WISH WE'D DONE IT TWO YEARS EARLIER HE SAYS BUT THE IMPORTANT THING IS WE DID IT 9303310051 930331 MERRILL QUIETLY FOLDS A BIG LENDING OPERATION BY RANDALL SMITH AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL MERRILL LYNCH & CO IS REVELING IN RECORD PROFITS AMID WALL STREET'S 1990S STOCK AND BOND BOOM THOSE PROFITS ARE ALLOWING THE BROKERAGE GIANT TO QUIETLY UNWIND A LEGACY OF THE 1980S A 1 BILLION PORTFOLIO OF LOANS TO SMALL COMPANIES THAT LED MERRILL TO TAKE A WRITEDOWN LAST YEAR ESTIMATED AT 200 MILLION THE HUGE BUT LITTLEKNOWN LENDING OPERATION MERRILL LYNCH INTERFUNDING MADE LOANS TOTALING ROUGHLY 2 BILLION TO ABOUT 80 SMALL COMPANIES FROM 1982 TO 1991 MANY OF THE LOANS INVOLVED LEVERAGED BUYOUTS FOR MUCH OF THE 1980S DEBT BOOM MERRILL LYNCH INTERFUNDING PRODUCED BIG PROFITS FOR MERRILL TOTALING ABOUT 550 MILLION ACCORDING TO PEOPLE FAMILIAR WITH ITS OPERATIONS MANY OF MERRILL'S LOANS HAD EQUITY KICKERS GIVING MERRILL A SHARE IN THE PROFITS IF THE COMPANIES PROSPERED BUT AFTER TAKING PROFITS ON SOME OF THE BEST DEALS MERRILL IS LEFT WITH A MIXED BAG OF LOANS TO 50 COMPANIES SOME IN FINANCIAL TROUBLE NOW MERRILL EXECUTIVES ARE QUIETLY SHUTTING DOWN MERRILL LYNCH INTERFUNDING BUT THE UNWINDING IS EXPECTED TO TAKE AS LONG AS SIX YEARS YOU JUST DON'T EXIT FROM THIS BUSINESS OVERNIGHT ACCORDING TO HERBERT M ALLISON JR MERRILL'S NEW HEAD OF INVESTMENT BANKING THE MAN WHOM MR ALLISON SUCCEEDED LAST WEEK LONGTIME INVESTMENT BANKING CHIEF BARRY S FRIEDBERG VIGOROUSLY DEFENDS MERRILL'S FORAY INTO SMALLCOMPANY LENDING MERRILL LYNCH INTERFUNDING HAS BEEN VERY PROFITABLE SINCE INCEPTION NOT A PROBLEM MR FRIEDBERG SAYS BUT EXECUTIVES INSIDE AND OUTSIDE MERRILL SAY THE WRITEDOWNS AT MERRILL LYNCH INTERFUNDING WERE A FACTOR IN MERRILL'S DEMOTION OF MR FRIEDBERG LAST WEEK AS PART OF A MAJOR RESHUFFLING MERRILL NAMED MR FRIEDBERG TO A NEWLY CREATED OFFICE OF THE CHAIRMAN WHERE HE HAS FAR LESS MANAGEMENT RESPONSIBILITY THAN HE HAD PREVIOUSLY HE HAD HEADED MERRILL'S 1000MEMBER INVESTMENT BANKING GROUP SINCE 1985 AN UNUSUALLY LONG TENURE MERRILL OFFICIALS INSIST THAT THE MOVE WAS NOT A DEMOTION AND THAT THE BIG LOAN PORTFOLIO PLAYED NO ROLE IN THE MANAGEMENT SHIFT MERRILL LYNCH INTERFUNDING SPRANG UP AT A TIME WHEN WALL STREET SECURITIES FIRMS WERE AGGRESSIVELY TRYING TO USE THEIR OWN CAPITAL TO MAKE PROFITABLE LOANS AND INVESTMENTS IN COMPANIES A STRATEGY KNOWN AS MERCHANT BANKING BUT SUCH INVESTMENTS HAVE BEEN ECLIPSED DURING THE PAST FEW YEARS BY THE RECORD PROFITS WALL STREET FIRMS HAVE BEEN MAKING BY UNDERWRITING NEW STOCK AND BOND ISSUES IT WAS MR FRIEDBERG WHO HELPED BUILD MERRILL'S INVESTMENT BANKING INTO A WALL STREET POWERHOUSE WITH THE NO 1 SHARE OF NEW STOCK AND BOND ISSUES FOR FIVE STRAIGHT YEARS UP FROM THIRD PLACE IN THE MID1980S LAST YEAR MERRILL EARNED 8938 MILLION ON REVENUE OF 859 BILLION YOU WON'T FIND DIRECT REFERENCES TO MERRILL LYNCH INTERFUNDING IN THE FIRM'S LATEST ANNUAL REPORT THE 1992 REPORT SAYS THAT UNSPECIFIED MERCHANT BANKING ACTIVITIES GENERATED A NET LOSS OF 120 MILLION WITHOUT IDENTIFYING INTERFUNDING BY NAME THE SAME REPORT SAYS THE VALUE OF THE PORTFOLIO DECLINED TO 822 MILLION IN LOANS TO 50 COMPANIES AT THE END OF 1992 FROM 108 BILLION IN LOANS TO 55 COMPANIES AT THE END OF 1991 SOME OF THE 259 MILLION REDUCTION IN THE VALUE OF THE LOAN PORTFOLIO COULD BE ATTRIBUTABLE TO THE LOANS BEING REPAID PARTICULARLY BECAUSE THE NUMBER OF BORROWERS DECLINED MERRILL OFFICIALS WOULDN'T SPECIFY HOW MUCH OF THAT REDUCTION REPRESENTS A WRITEDOWN HOWEVER TWO PEOPLE FAMILIAR WITH THE PORTFOLIO ESTIMATED THE 1992 WRITEDOWN AT ABOUT 200 MILLION AMONG MERRILL LYNCH INTERFUNDING'S PROFITABLE INVESTMENTS WERE STAKES IN IMCO RECYCLING INC FOUNDATION HEALTH CORP AND BOOMTOWN INC HOWEVER ANOTHER EQUITY STAKE MAXUM HEALTH CORP TOOK A HIT WHEN THE STOCK TUMBLED 52 ON MARCH 1 AFTER THE COMPANY SAID IT WOULD REPORT A LOSS FOR 1992 MERRILL OFFICIALS ESTIMATE THE INTERFUNDING PORTFOLIO MAY CONTAIN 150 MILLION IN ADDITIONAL UNREALIZED GAINS AND THAT LOSES ARE TO BE EXPECTED IN ANY LENDING PORTFOLIO BUT OTHERS CAUTION THAT MORE WRITEDOWNS ARE LIKELY TO LIE AHEAD AS WELL ONE QUESTION IS HOW MUCH OF A ROLE CREDITRATING CONCERNS PLAYED IN MERRILL'S DECISION TO FOLD ITS SMALLCOMPANY LENDING OPERATION MERRILL'S UNWINDING OF THE BIG LOAN PORTFOLIO HAS BEEN AMONG SEVERAL FACTORS THAT HELPED RAISE MERRILL'S CREDIT RATINGS DURING THE PAST YEAR SAY SOME CREDITRATING EXECUTIVES STANDARD & POOR'S CORP FOR INSTANCE RAISED THE RATING ON MERRILL'S SENIOR DEBT LAST YEAR TO SINGLEAPLUS FROM SINGLEA S&P OFFICIALS ACKNOWLEDGE HAVING HAD DISCUSSIONS WITH MERRILL ABOUT ITS PORTFOLIO OF ILLIQUID INVESTMENTS BUT THE OFFICIALS STRESS THAT MERRILL HAS A BIG BALANCE SHEET AND THEY SAY THE DECISION TO UNWIND INTERFUNDING WAS STRICTLY MERRILL'S AND WAS ONLY ONE OF MANY FACTORS IN RAISING THE FIRM'S CREDIT RATING TO THE EXTENT THEY HAVE A PORTFOLIO LIKE THAT IT'S A NEGATIVE FACTOR IN OUR RATING EVALUATION SAYS MARK BACHMANN A SENIOR VICE PRESIDENT AT S&P WE DID TALK ABOUT THAT ISSUE WITH THEM MR BACHMANN SAYS BUT I WOULDN'T SAY WE NUDGED THEM MERRILL'S DECISION TO UNWIND INTERFUND IS PART OF A BROADER PUSH TO SLASH ITS EXPOSURE TO RISKY INVESTMENTS IN THE 1990S CREDITRATING EXECUTIVES SAY MERRILL HAS PUT A LOT OF FOCUS ON ITS RISK MANAGEMENT AND TRYING TO LIMIT THE AMOUNT OF ILLIQUID STUFF IS ONE ASPECT OF THAT SAYS S&P'S MR BACHMANN THE FOUNDER AND FORMER CHIEF EXECUTIVE OFFICER OF MERRILL LYNCH INTERFUNDING EDWARD MULHARE RETIRED LAST YEAR AFTER REACHING THE AGE OF 65 HE WOULDN'T COMMENT CITING A SEPARATION AGREEMENT WITH MERRILL BARRING HIM FROM DOING SO HOWEVER MANY OF HIS KEY STAFFERS ALSO HAVE LEFT OR ARE IN THE PROCESS OF LEAVING MERRILL AFTER MERRILL CURTAILED INTERFUNDING'S NEW LENDING IN 1990 MR FRIEDBERG RECOMMENDED IN MARCH 1992 THAT INTERFUNDING HALT MAKING NEW LOANS A STEP OSTENSIBLY LINKED TO MR MULHARE'S RETIREMENT PLANS OTHERS AT MERRILL SAY MONITORING SCORES OF SMALL COMPANIES TOOK A LOT OF MANPOWER MERRILL HAD ORIGINALLY HOPED TO CONVERT MANY OF INTERFUNDING'S BORROWERS INTO INVESTMENT BANKING CLIENTS BUT MOST OF THE COMPANIES WERE TOO SMALL TO MAKE THAT EFFORT WORTHWHILE AND LESS THAN HALF A DOZEN EVER BECAME CLIENTS ACCORDING TO MERRILL EXECUTIVES MR ALLISON SAYS MERRILL DECIDED TO EXIT FROM INTERFUNDING IN ORDER TO FOCUS MORE ON ITS THREE CORE MARKETS OF INDIVIDUAL INVESTORS INSTITUTIONAL INVESTORS AND INVESTMENT BANKING CLIENTS HE ADDS THAT MONITORING THE INTERFUNDING PORTFOLIO AND PREPARING THE COMPANIES FOR SALE ENTAILED SIGNIFICANT ADMINISTRATIVE COSTS HOWEVER MR ALLISON SAYS INTERFUNDING HAD MET MERRILL'S LONGTERM PROFIT GOALS OF A 15 AFTERTAX RETURN ON EQUITY AND HE INDICATED THE PORTFOLIO STILL HAS SUBSTANTIAL UNREALIZED CAPITAL GAINS THAT AREN'T ACCOUNTED FOR IN THE ANNUALREPORT FIGURES MR FRIEDBERG'S JOB CHANGE WAS NOTABLE BECAUSE MOST OTHER LEADING WALL STREET FIRMS HAVE HAD THREE OR FOUR HEADS OF INVESTMENT BANKING DURING HIS REIGN HE SURVIVED A LOT LONGER THAN MANY OF HIS COUNTERPARTS AT OTHER FIRMS SAYS DAVID HILDER A FINANCIALSERVICES ANALYST AT FIRST BOSTON CORP HOWEVER WALL STREET EXECUTIVES SAY MR FRIEDBERG WAS HURT AFTER MERRILL MADE SOME LARGE TEMPORARY BRIDGE LOANS TO HELP CLIENTS COMPLETE ACQUISITIONS INVOLVING CHURCH'S FRIED CHICKEN THAT LATER SOURED HE ALSO WAS HURT BY A REVERSAL IN WHICH MERRILL ADVISED MARRIOTT CORP ON A CONTROVERSIAL RESTRUCTURING PLAN THEN WITHDRAW AS AN ADVISER AFTER PROTESTS FROM INSTITITUTIONAL INVESTORS THAT HAD BOUGHT MARRIOTT BONDS THROUGH MERRILL 9303310050 930331 DIVIDEND NEWS LONE STAR STEAKHOUSE & SALOON INC LONE STAR STEAKHOUSE & SALOON INC SAID ITS BOARD DECLARED A 2FOR1 SPLIT OF ITS COMMON STOCK THE RESTAURANT CHAIN SAID THE SPLIT WILL PAID APRIL 26 TO SHARES OF RECORD APRIL 12 THE SPLIT IS LONE STAR'S SECOND SINCE THE WICHITA KAN COMPANY'S INITIAL PUBLIC OFFERING IN MARCH 1992 AT 675 A SHARE ADJUSTED FOR THE FIRST STOCK SPLIT LAST AUGUST LONE STAR HAS SOARED SINCE IT WENT PUBLIC CLOSING AT 4425 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9303310049 930331 FILINGS CHALLENGE SALE OF EXECUTIVE LIFE'S JUNKBOND PORTFOLIO LOS ANGELES TRUSTEES FOR BONDS BACKED BY FAILED EXECUTIVE LIFE INSURANCE CO FILED A MOTION TO RESCIND THE 325 BILLION SALE OF THE INSURER'S JUNKBOND PORTFOLIO TO A SUBSIDIARY OF FRENCH BANK CREDIT LYONNAIS THE FILING IN STATE COURT HERE FOLLOWS A CALIFORNIA STATE APPEALS COURT DECISION LAST WEEK SETTING ASIDE A PLAN TO SELL EXECUTIVE LIFE ITSELF TO A GROUP OF FRENCH INVESTORS LED BY PARISBASED INSURER MUTUELLE ASSURANCE ARTISANALE DE FRANCE A SECOND FILING ALSO SEEKING RECISION OF THE JUNKBOND SALE WAS MADE YESTERDAY BY LAWYERS REPRESENTING UNDERWRITERS OF THE MUNICIPAL BONDS BACKED BY EXECUTIVE LIFE THESE SOCALLED MUNIGIC BONDS WITH A FACE VALUE TOTALING 19 BILLION HAVE BEEN THE FOCUS OF CONTENTION BETWEEN CREDITORS AND REGULATORS OVER THE FATE OF BILLIONS OF DOLLARS OF ASSETS OF EXECUTIVE LIFE YESTERDAY'S MOTIONS ARGUE THAT BECAUSE OF THE APPELLATE COURT DECISION UNDERMINING CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI'S BAILOUT PLAN FOR EXECUTIVE LIFE THE GIANT JUNKBOND SALE TO CREDIT LYONNAIS'S ALTUS FINANCE COMPLETED LAST YEAR SHOULD BE RESCINDED SUCH A REVERSAL COULD COMPLETELY UNWIND MR GARAMENDI'S HARDFOUGHT REHABILITATION PLAN IN WHICH REGULATORS MAINTAINED THAT MUNIGIC HOLDER RANKED JUNIOR TO CONVENTIONAL POLICYHOLDERS IN RESTRUCTURING THE COMPANY BILL SCHULZ A SPOKESMAN FOR THE STATE INSURANCE DEPARTMENT CALLED THE MOTIONS UNPRODUCTIVE AND FUTILE SAYING THEY ARE SIMILAR TO PREVIOUS ACTIONS FILED SEVERAL WEEKS AGO HE ADDED THAT WITHIN THE NEXT TWO WEEKS THE INSURANCE DEPARTMENT WILL PROVIDE THE COURT A REHABILITATION PLAN THAT MEETS THE CHANGES THAT THE COURT HAD DESIRED IN ITS DECISION LAST WEEK EXECUTIVE LIFE INSURANCE CO THE LARGEST UNIT OF FIRST EXECUTIVE CORP WAS SEIZED BY REGULATORS IN APRIL 1991 9303310048 930331 PRUDENTIAL'S GLOBAL NATURAL STAKE HOUSTON GLOBAL NATURAL RESOURCES INC SAID THAT PRUDENTIAL INSURANCE CO OF AMERICA CONVERTED ALL ITS SERIES A GLOBAL PREFERRED STOCK INTO 63 MILLION SHARES OF GLOBAL COMMON PRUDENTIAL NOW OWNS 21 OF GLOBAL'S SHARES OUTSTANDING AND IS THE COMPANY'S LARGEST STOCKHOLDER GLOBAL SAID GLOBAL IS AN OIL AND GAS EXPLORATION COMPANY 9303310047 930331 CRAY COMPUTER PLANS DELIVERIES OF ITS NEW LINE BY ANDREA GERLIN AND KYLE POPE STAFF REPORTERS OF THE WALL STREET JOURNAL CRAY COMPUTER CORP SAID IN COLORADO SPRINGS COLO THAT IT PLANS LATER THIS YEAR TO BEGIN SHIPPING ITS FIRST SCALEDDOWN VERSIONS OF THE MUCHDELAYED CRAY3 SUPERCOMPUTER LINE IN A BID TO RAISE CASH THE MACHINES PRICED FROM 2950000 ARE BEING INTRODUCED BY CRAY AS PART OF A SCRAMBLE TO GENERATE CRITICALLY NEEDED CASH THE COMPANY HAS PREDICTED THAT IT MAY RUN OUT OF MONEY AS EARLY AS JULY WITHOUT NEW CUSTOMERS OR AN INFUSION OF CASH FROM THE OUTSIDE WHILE ANALYSTS PREDICT THE COMPANY WILL SELL A LIMITED NUMBER OF THE NEW CRAY3 SYSTEMS THEY SAY IT IS DOUBTFUL THOSE SALES WILL BE ENOUGH TO KEEP CRAY GOING UNTIL THE COMPANY RELEASES ITS NEXTGENERATION MACHINE THE CRAY4 THEY NEED IN THE NEXT EIGHT MONTHS SOME VEHICLE OF FINANCING SAID CRAIG SULTAN A COMPUTER SYSTEMS ANALYST AT MONTGOMERY SECURITIES IN SAN FRANCISCO THERE WILL LIKELY BE ONLY A HANDFUL OF PEOPLE WHO WILL BE WILLING TO KICK THE TIRES AND BUY ONE MR SULTAN SAID COMPANY FOUNDER SEYMOUR CRAY HAS SPENT THE PAST SEVERAL MONTHS LOBBYING FEDERAL OFFICIALS TO SPUR INTEREST IN THE CRAY3 SOME INDUSTRY OBSERVERS HAVE URGED THE US GOVERNMENT TO MAKE AN INVESTMENT IN CRAY COMPUTER TO KEEP THE COMPANY AFLOAT THEY'RE SAYING DO YOU WANT TO SUPPORT AN ALTERNATE DOMESTIC SUPPLIER MR SULTAN SAID THERE ARE SOME PEOPLE WHO WANT TO SEE SEYMOUR WIN ONE LAST TIME CRAY OFFICIALS WHO RELEASED NEWS OF THE CRAY3 AFTER THE CLOSING OF THE STOCK MARKET COULDN'T BE REACHED FOR COMMENT IN ITS NEWS RELEASE THE COMPANY SAID CRAY3 SYSTEMS WITH ONE TWO AND FOUR PROCESSORS WILL BE AVAILABLE FOR SHIPMENT IN MID1993 EIGHTPROCESSOR VERSIONS WILL BE READY BY LATE THIS YEAR AND 16PROCESSOR MACHINES WILL BE READY FOR SHIPMENT IN 1994 CRAY'S NEW SUPERCOMPUTER LINE FOLLOWS EARLY TECHNICAL PROBLEMS WITH THE MACHINE'S GALLIUM ARSENIDE CHIPS WHICH WERE THEORETICALLY FASTER THAN SILICON CHIPS BUT ULTIMATELY PROVED TO BE UNSTABLE THE PROBLEMS HAVE SLOWED THE COMPANY'S DEVELOPMENT OF THE CRAY3 AND FORCED CRAY TO FIND NEW SOURCES OF CASH DELAYS LED CRAY'S LARGEST CUSTOMER LAWRENCE LIVERMORE NATIONAL LABORATORY TO CANCEL ITS ORDER FOR A 30 MILLION 16PROCESSOR SYSTEM IN DECEMBER 1991 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 9303310046 930331 BANKS SEEK TO FORCE ORIOLES TEAM OWNER INTO CHAPTER 11 STATUS NEW YORK AN INTERNATIONAL GROUP OF BANKS IS SEEKING TO FORCE FINANCIER ELI S JACOBS INTO PERSONAL BANKRUPTCY SAYING THAT THE INVESTOR AND OWNER OF MAJOR LEAGUE BASEBALL'S BALTIMORE ORIOLES OWES IT NEARLY 60 MILLION THE FILING LATE MONDAY OF AN INVOLUNTARY CHAPTER 11 PETITION SIGNIFICANTLY ESCALATES THE BATTLE BETWEEN MR JACOBS AND HIS CREDITORS SEVERAL LAWSUITS HAVE BEEN FILED AGAINST HIM BUT MR JACOBS HAS SAID THAT MANY OF THE DEBTS ARE THE RESPONSIBILITY OF HIS NEW YORKBASED INVESTMENT PARTNERSHIP PARK PARTNERS IF THE BANKS' PETITION SUCCEEDS IT MAY MAKE MR JACOBS PERSONALLY RESPONSIBLE FOR THE DEBT THE BANKS THAT FILED THE PETITION ARE UNION BANK OF SWITZERLAND BANK OF NEW YORK CHEMICAL BANK A UNIT OF CHEMICAL BANKING CORP BARCLAYS BANK PLC BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION A UNIT OF BANKAMERICA CORP IBJ SCHROEDER BANK & TRUST CO AND WELLS FARGO BANK A UNIT OF WELLS FARGO & CO IF IT IS SHOWN THAT THE BANKS FILED THE PETITION MERELY TO HELP THEIR EFFORTS TO GET THEIR MONEY THEY MAY BE LIABLE FOR DAMAGES MR JACOBS IS OBVIOUSLY DISAPPOINTED THAT THIS MATTER COULD NOT BE RESOLVED OUT OF COURT HE'S CONFIDENT THAT UNDER THE COURT'S PROTECTION HE AND HIS CREDITORS CAN COME TO AN AMICABLE AGREEMENT MR JACOBS'S SPOKESMAN SAID MR JACOBS HASN'T DISCLOSED DETAILS ABOUT HIS FINANCIAL CONDITION HE HAS 20 DAYS TO OPPOSE THE PETITION THE FILING COMES AS MR JACOBS IS SEEKING TO SELL THE ORIOLES BECAUSE THE BANKS INITIATED THE BANKRUPTCY PROCEEDING ANY SALE RIGHT NOW WOULD HAVE TO BE REVIEWED BY THE BANKRUPTCY COURT MR JACOBS'S FORTUNES HAVE REVERSED SIGNIFICANTLY SINCE MAY 1991 WHEN HIS NET WORTH WAS ESTIMATED AT 500 MILLION 9303310045 930331 BUSINESS BRIEF CELLCOR INC FOURTHPERIOD YEAR LOSSES ARE RESTATED DUE TO CHARGE CELLCOR INC RESTATED LOSSES FOR THE FOURTH QUARTER AND FULL YEAR TO REFLECT A 23 MILLION CHARGE TAKEN TO REDUCE THE SIZE OF THE COMPANY AND TO INCREASE EFFORTS TO GET A CANCER THERAPY APPROVED FOR MARKETING THE NEWTON MASS BIOTECHNOLOGY CONCERN SAID ITS FOURTHQUARTER LOSS WIDENED TO 53 MILLION OR 98 CENTS A SHARE FROM 26 MILLION OR 106 A SHARE A YEAR AGO IT HAD REPORTED A LOSS OF 3 MILLION OR 56 CENTS A SHARE FOR THE 1992 FOURTH QUARTER REVENUE DECLINED TO 333000 FROM 739000 A YEAR AGO THE COMPANY SAID THE NET LOSS FOR THE FULL YEAR WAS 125 MILLION OR 265 A SHARE IT HAD REPORTED A LOSS OF 102 MILLION OR 217 A SHARE ITS PRIOR YEAR'S LOSS OF 98 MILLION OR 397 A SHARE WAS UNCHANGED THE COMPANY SAID THE CHARGE REFLECTS THE CLOSING OF OPERATIONS IN BOSTON ATLANTA AND ORANGE CALIF AND THE REDUCTION OF ITS WORK FORCE ABOUT 50 TO 45 EMPLOYEES 9303310044 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT ENTERTAINING NUMBERS A STATISTICAL LOOK AT THE GLOBALENTERTAINMENT INDUSTRY COMPILED BY ANNE GREGOR FOR THE MAJOR STUDIOS REVENUE FROM FILMS AND ANCILLARY ACTIVITIES IS GROWING AT A FASTER RATE OVERSEAS THAN IN THE US HERE'S A BREAKDOWN FREQUENCY OF WORK AND BOFFO BOX OFFICE DON'T NECESSARILY CORRELATE FOR DIRECTORS WOODY ALLEN RANKS AMONG THE TOP IN TERMS OF THE NUMBER OF FILMS DIRECTED BETWEEN 1985 AND 1990 YET PLACED 70TH OVERALL IN TERMS OF DOMESTIC BOX OFFICE HERE ARE THE MOST PROFITABLE DIRECTORS NOTE INCLUDES REVENUE FROM FILM AND TELEVISION PRODUCTIONS RECORDED MUSIC AND THEME PARKS A GROWING PERCENTAGE OF THE MOVIES SHOWN AROUND THE WORLD WERE MADE IN THE US THE FOLLOWING SHOWS WHAT PERCENT OF TICKET ADMISSIONS WERE FOR FILMS MADE IN THE US THE HOME HOME COUNTRY OR ELSEWHERE IN 1950 THERE WERE ALMOST TWICE AS MANY SCREENS IN THE WESTERN EUROPEAN COUNTRIES AS IN THE US AND CANADA BY 1985 THE US HAD OVERTAKEN WESTERN EUROPE THE NUMBER OF CINEMA SCREENS BY REGION BOXOFFICE RECEIPTS FOR SELECTED MOVIES IN MILLIONS OF DOLLARS HOME VIDEO HAS BECOME THE LARGEST CONTRIBUTOR TO US MOVIE DISTRIBUTORS' TOTAL REVENUE AND IT IS GROWING FASTER THAN ANY OTHER SEGMENT THE FOLLOWING SHOWS DISTRIBUTORS' WORLDWIDE REVENUE BY SOURCE THE PERCENTAGE OF TVOWNING HOUSEHOLDS THAT ALSO HAVE VCRS HAS SOARED IN RECENT YEARS 9303310043 930331 BUSINESS BRIEF SOUTHWESTERN BELL CORP CHARGE PLANNED FOR QUARTER ON EARLY RETIREMENT OF DEBT SOUTHWESTERN BELL CORP SAN ANTONIO TEXAS SAID IT WILL RECORD A 61 MILLION OR 20 CENTS A SHARE FIRSTQUARTER CHARGE RELATED TO EARLY REDEMPTION OF 450 MILLION IN DEBENTURES BY ITS SOUTHWESTERN BELL TELEPHONE CO UNIT IN THE 1992 FIRST QUARTER SOUTHWESTERN BELL HAD NET INCOME OF 2616 MILLION OR 87 CENTS A SHARE ON REVENUE OF 229 BILLION THE REGIONAL BELL OPERATING COMPANY SAID IT WILL REPORT 1993 FIRSTQUARTER EARNINGS IN LATE APRIL SOUTHWESTERN BELL TELEPHONE PLANS TO RETIRE TWO ISSUES ON APRIL 30 300 MILLION OF 875 DEBENTURES ISSUED IN 1986 AND DUE 2024 AND 150 MILLION OF 825 DEBENTURES ISSUED IN 1969 AND DUE IN 2005 THE COMPANY SAID IT INTENDS TO REFINANCE THE DEBT BY TAKING ADVANTAGE OF LOWER INTEREST RATES 9303310042 930331 BUSINESS BRIEF MERIDIAN BANCORP SETS COMMONWEALTH BANCSHARES MERGER READING PA MERIDIAN BANCORP INC EDGED OUT TWO OTHER PENNSYLVANIA BANKS TO WIN THE RIGHT TO MERGE COMMONWEALTH BANCSHARES CORP INTO ITS BUSINESS FOR ABOUT 342 MILLION IN STOCK SHARES OF COMMONWEALTH WILLIAMSPORT PA SHOT UP YESTERDAY ON THE ANNOUNCEMENT CLOSING UP 950 TO 4275 IN NATIONAL OVERTHECOUNTER TRADING UNDER TERMS OF A DEFINITIVE AGREEMENT MERIDIAN WOULD EXCHANGE 1415 COMMON SHARES FOR EACH SHARE OF COMMONWEALTH OUTSTANDING COMMONWEALTH WITH ABOUT 2 BILLION IN ASSETS HAD ABOUT 75 MILLION SHARES OUTSTANDING AT THE END OF 1992 MERIDIAN WITH 456 MILLION SHARES OUTSTANDING WILL NEED TO ISSUE 109 MILLION SHARES FOR THE TRANSACTION BOTH COMPANIES SAID THE DEAL SHOULD BE COMPLETED SOMETIME IN THE FOURTH QUARTER AFTER ABSORBING COMMONWEALTH MERIDIAN WILL HAVE 142 BILLION IN ASSETS AND REMAIN THE FOURTH LARGEST BANK HOLDING COMPANY IN PENNSYLVANIA BUT THE ADDITION OF COMMONWEALTH'S STRONG MARKET POSITION IN CENTRAL AND NORTHEASTERN PENNSYLVANIA WILL GREATLY ENHANCE MERIDIAN'S BUSINESS WHICH REMAINS CONCENTRATED IN SOUTHERN AND SOUTHEASTERN PENNSYLVANIA ACCORDING TO EXECUTIVES FAMILIAR WITH THE MERGER CORESTATES FINANCIAL CORP AND A LARGE PITTSBURGH BANK BELIEVED TO BE PNC BANK CORP ALSO MADE BIDS FOR COMMONWEALTH PNC OFFICIALS DECLINED TO COMMENT CORESTATES OFFICIALS COULDN'T IMMEDIATELY BE REACHED FOR COMMENT ANALYSTS EXPRESSED CONCERN THAT MERIDIAN MAY BE PAYING TOO MUCH FOR THE 60BRANCH PENNSYLVANIA BANK COMPANY MERIDIAN SHARES CLOSED OFF 50 CENTS AT 3225 YESTERDAY IN NATIONAL OTC TRADING AT THE CLOSING PRICE THE STOCKSWAP RATIO VALUES COMMONWEALTH AT ABOUT 4563 A SHARE 9303310041 930331 TECHNOLOGY HALSEY SETS RESERVE FOR DRUG RECALLS STOCK PRICE PLUNGES NEW YORK HALSEY DRUG CO SAID IT SET ASIDE 2 MILLION IN RESERVES BEFORE TAXES IN CONNECTION WITH PRODUCT RECALLS AND GOVERNMENT INVESTIGATIONS OF ITS MANUFACTURING AND RECORDKEEPING PRACTICES THE DISCLOSURE COUPLED WITH THE COMPANY'S ANNOUNCEMENT OF SHARPLY LOWER RESULTS FOR LAST YEAR SENT THE COMPANY'S STOCK PLUMMETING IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE LATE YESTERDAY HALSEY SHARES WERE QUOTED AT 419 DOWN 356 THE GENERIC DRUG MAKER BASED IN BROOKLYN NY SAID THE FOOD AND DRUG ADMINISTRATION AND THE JUSTICE DEPARTMENT ARE INVESTIGATING THE COMPANY'S DRUG APPROVALS AND RECORDKEEPING PRACTICES A VARIETY OF PROBLEMS HAVE BEEN IDENTIFIED THE COMPANY SAID IT SAID THE PROBLEMS RELATE TO RECORDKEEPING PRACTICES ADDITION OF UNAPPROVED AND INACTIVE PRODUCT INGREDIENTS AND PROCESSINGDEVIATIONS DURING THE MANUFACTURE OF THOSE PRODUCTS AT THE COMPANY'S BROOKLYN PLANT HALSEY SAID IT HASN'T RECEIVED ANY REPORTS OF ADVERSE REACTIONS TO THOSE PRODUCTS THE COMPANY SAID IT IS VOLUNTARILY RECALLING ONE PRODUCT AND EXPECTS TO RECALL TWO OR MORE ADDITIONAL ONES HALSEY SAID IT STOPPED PRODUCTION OF A NUMBER OF PRODUCTS BUT DECLINED TO IDENTIFY THEM THE COMPANY SAID IT'S CONDUCTING AN EXTENSIVE REVIEW OF ALL EXISTING DRUG PRODUCTS MANUFACTURED AT THE BROOKLYN PLANT HALSEY SAID THAT THE WRITEOFF OF INVENTORIES OF AFFECTED PRODUCTS AND THE ESTABLISHMENT OF THE RESERVE TO COVER THE RECALL AND LEGAL EXPENSES ADVERSELY AFFECTED ITS FOURTH QUARTER AND FULLYEAR RESULTS FOR THE FOURTH QUARTER OF 1992 THE COMPANY POSTED A LOSS OF 884000 COMPARED WITH A PROFIT OF 451000 IN THE YEAREARLIER QUARTER 9303310040 930331 ONTARIO PLANS TO BOOST TAXES CUT SPENDING TO HOLD DOWN DEFICIT TORONTO ONTARIO SAID IT IS PLANNING SPENDING CUTS AND TAX INCREASES IN AN EFFORT TO KEEP NEXT YEAR'S DEFICIT UNDER 10 BILLION CANADIAN DOLLARS US803 BILLION ONTARIO PREMIER BOB RAE SAID THE PROVINCE WILL RESTRUCTURE GOVERNMENT DEPARTMENTS AND NEGOTIATE A SOCIAL CONTRACT WITH PUBLICSECTOR EMPLOYEES TO CUT SPENDING MR RAE HAD WARNED THAT WAGE ROLLBACKS AND JOB CUTS WERE NEEDED TO BRING DOWN THE PROVINCE'S COSTS AT THE CURRENT RATE OF BORROWING THE PROVINCE'S DEBT OF C68 BILLION WOULD JUMP TO C120 BILLION IN 1996 AND DEBTSERVICING COSTS COULD DOUBLE MR RAE SAID ONTARIO SPENT ABOUT C54 BILLION SERVICING ITS DEBT DURING FISCAL 1993 WHICH ENDS TODAY THE PROVINCE IS EXPECTING TO REPORT A FISCAL 1993 DEFICIT OF ABOUT C12 BILLION PARTLY AS A RESULT OF LOWERTHANEXPECTED TAX REVENUE MR RAE SAID THE GOVERNMENT PLANS TO INCREASE REVENUE THROUGH TAX MEASURES BUT DETAILS WON'T BE ANNOUNCED UNTIL THE PROVINCE'S BUDGET IS PRESENTED THIS SPRING IN THE STATEMENT ONTARIO FINANCE MINISTER FLOYD LAUGHREN SAID WE CANNOT ALLOW THINGS TO REACH THE POINT WHERE IN THE FUTURE INTERNATIONAL CAPITAL MARKETS REFUSE TO LEND ONTARIO MONEY WITHOUT IMPOSING STRINGENT CONDITIONS ON HOW WE SPEND ON HEALTH CARE ON EDUCATION OR JOBS THE DEBTCONTROL MEASURES FOLLOW SHARP SPENDING CUTS ANNOUNCED IN THE BUDGETS OF TWO OTHER PROVINCES SASKATCHEWAN AND NEWFOUNDLAND THIS MONTH BRITISH COLUMBIA YESTERDAY SAID THAT IT WILL CUT ITS BUDGET DEFICIT TO ABOUT C153 BILLION IN FISCAL 1994 FROM C195 BILLION THIS YEAR ONTARIO HYDRO A POWER UTILITY OWNED BY ONTARIO ALSO ANNOUNCED IT WOULD CUT 4500 JOBS BY YEAR END IN A MAJOR COSTCUTTING PLAN 9303310039 930331 FOUNDATION RECEIVES KNIGHTRIDDER STOCK WORTH 100 MILLION MIAMI THE JOHN S AND JAMES L KNIGHT FOUNDATION SAID IT RECEIVED 1743923 SHARES OF KNIGHTRIDDER INC COMMON STOCK VALUED AT ABOUT 100 MILLION FROM THE JAMES L KNIGHT TRUST JAMES L KNIGHT A FOUNDER OF KNIGHTRIDDER THE COMMUNICATIONS GIANT THAT PUBLISHES 29 NEWSPAPERS SPECIFIED IN HIS WILL THAT A SIGNIFICANT PORTION OF HIS ESTATE BE GIVEN TO THE FOUNDATION MR KNIGHT DIED IN FEBRUARY 1991 THE FOUNDATION WHICH MAKES NATIONAL GRANTS IN JOURNALISM AND EDUCATION AND FOR THE ARTS AND CULTURAL PURSUITS SAID THE PARTIAL DISTRIBUTION IT RECEIVED BOLSTERS ITS ASSETS TO ABOUT 740 MILLION MAKING IT AMONG THE 25 LARGEST FOUNDATIONS IN THE US A SPOKESWOMAN FOR THE KNIGHT FOUNDATION SAID THAT THE DISTRIBUTION WILL INCREASE OUR GRANTMAKING CAPABILITY SO WE CAN GIVE MORE MONEY AWAY SHE ADDED FROM OUR PERSPECTIVE WE DON'T SEE IT CHANGING OUR RELATIONSHIP WITH KNIGHTRIDDER IN ANY WAY THE FOUNDATION SAID THE DISTRIBUTION RAISES ITS KNIGHTRIDDER HOLDINGS TO ABOUT THREE MILLION SHARES OR ABOUT 24 OF TOTAL ASSETS AND WILL INCREASE ITS GRANTMAKING CAPABILITY TIMOTHY J CROWE THE FOUNDATION'S CHIEF FINANCIAL OFFICER SAID ANY FUTURE SALE OF STOCK WOULD BE DONE GRADUALLY WITH THE OBJECTIVE OF DIVERSIFYING THE ORGANIZATION'S HOLDINGS WHILE ASSURING NO DISRUPTION OF THE MARKET THE FOUNDATION MADE 29 MILLION IN GRANTS LAST YEAR AND HAS GIVEN AWAY MORE THAN 167 MILLION SINCE ITS ESTABLISHMENT IN 1950 THE ORGANIZATION SAID IT COULDN'T PREDICT WHEN MR KNIGHT'S ESTATE ESTIMATED AT MORE THAN 200 MILLION WILL BE SETTLED OR WHEN IT WOULD RECEIVE ITS FINAL DISTRIBUTION 9303310038 930331 CREDIT MARKETS MUNI FLOATERS ARE MARKETED TO INDIVIDUALS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK YOU DON'T HAVE TO BE A PROFESSIONAL INVESTOR TO ANTE UP FOR ONE OF THE RISKIEST HANDS IN THE MUNICIPALBOND BUSINESS THESE DAYS MERRILL LYNCH & CO HAS JUST BEGUN MARKETING AN EXOTIC TYPE OF MUNICIPAL BOND THE INVERSE FLOATER DIRECTLY TO INDIVIDUAL INVESTORS A MERRILL BROCHURE TEEMS WITH WARNINGS TO INVESTORS ABOUT THE SECURITIES WHICH ARE KNOWN AT MERRILL AS TEEMS AND SO FOR AS LITTLE AS 25000 INVESTORS NOW CAN JOIN A POKER GAME THAT HAS SO FAR BEEN DOMINATED BY MUTUAL FUNDS WITH THEIR LEGIONS OF ANALYSTS HOLDING BUSINESSSCHOOL AND MATHEMATICS DEGREES I'M SHOCKED SAYS GREGORY HARRINGTON DIRECTOR OF MUNICIPAL RESEARCH AND TRADING AT FRANKLIN ADVISERS INC A UNIT OF FRANKLIN RESOURCES A MUNIBONDFUND POWERHOUSE I'VE ALWAYS BEEN TOLD BY UNDERWRITERS THAT THEY WOULD NOT BE GOING TO INDIVIDUAL INVESTORS TO SELL INVERSE FLOATERS BUT STARTING LAST WEEK MERRILL BEGAN SELLING 15 MILLION OF INVERSE FLOATERS TO INDIVIDUALS AS PART OF AN OFFERING BY THE PUERTO RICO TELEPHONE AUTHORITY SO FAR ABOUT HALF HAVE BEEN SOLD MERRILL SAYS WITH INTEREST RATES HOVERING AT THEIR LOWEST LEVELS IN TWO DECADES AND MANY OLDER HIGHERYIELDING BONDS BEING CALLED AWAY INVESTORS ARE ALWAYS LOOKING FOR NEW WAYS TO WIN AT THE OLD GAME OF PUMPING UP THEIR TOTAL RETURNS YESTERDAY FOR EXAMPLE THE BENCHMARK 30YEAR TREASURY BOND YIELDED 691 UP FROM 689 ON MONDAY AS ITS PRICE DROPPED ABOUT 1/4 POINT OR ABOUT 250 FOR EACH 1000 FACE AMOUNT DURING THE PAST THREE YEARS MUNICIPAL BOND FUNDS RUN BY SUCH HEAVYWEIGHTS AS DREYFUS CORP AND PUTNAM COS HAVE BEEN LOADING UP ON MUNICIPAL INVERSE FLOATERS TO BOOST THEIR TOTAL RETURNS TOTAL ISSUANCE OF THESE COMPLEX SECURITIES REACHED 48 BILLION LAST YEAR SO FAR THE BETS HAVE PAID OFF BECAUSE SHORTTERM INTEREST RATES HAVE CONTINUED TO PLUNGE THIS IS BECAUSE IN THEIR VARIOUS FORMS INVERSE FLOATERS OFFER BETTER RETURNS THAN PLAINVANILLA BONDS AS LONG AS SHORTTERM RATES AND LONGTERM RATES STAY THE SAME OR DROP LOWER BUT WATCH OUT IF RATES SURGE ESPECIALLY SHORTTERM RATES IF THAT HAPPENS THE RETURNS FROM INVERSE FLOATERS WILL DROP MUCH FURTHER THAN THE RETURNS FROM PLAINVANILLA BONDS MERRILL'S MOVE IS A SIGN THAT UNDERWRITERS ARE STRETCHING HARD TO GAIN NEW BUYERS FOR EXOTIC MUNICIPAL SECURITIES FUND INDUSTRY EXECUTIVES SAY BUT ACCORDING TO THOMAS KENNY MANAGER OF FRANKLIN ADVISERS' MUNICIPAL RESEARCH DEPARTMENT MERRILL'S MOVE MARKS A MAJOR REVERSAL OF PRIOR STATEMENTS BY UNDERWRITERS THAT SMALL INVESTORS WOULDN'T BE INVITED TO BUY SUCH COMPLEX MUNICIPAL SECURITIES SOME OF THE PRODUCTS OUT THERE THAT RETAIL BROKERS ARE SELLING ARE SCARY ENOUGH WITHOUT ADDING ANOTHER DERIVATIVE PRODUCT TO THE LIST HE SAYS AS LONG AS AN INDIVIDUAL CAN DIVERSIFY HIS PORTFOLIO ENOUGH CONCEDES MR KENNY MAYBE IT'S NOT A BAD THING BUT IF SHORTTERM RATES RISE SHARPLY AND YOU WANT TO UNLOAD YOUR SUDDENLY UNPROFITABLE TEEMS SAY MR KENNY YOU MAY HAVE TROUBLE FINDING A BUYER TO BE SURE LITERATURE PROVIDED TO INVESTORS BY MERRILL LYNCH SAYS THAT THE COMPANY INTENDS TO MAINTAIN A SECONDARY MARKET FOR TEEMS PROVIDING LIQUIDITY CONSISTENT WITH CURRENT MARKET CONDITIONS THE LITERATURE ALSO CLEARLY SPELLS OUT THE RISKS AND REWARDS OF THESE SECURITIES WHOSE ACRONYM STANDS FOR TAXEXEMPT ENHANCED MUNICIPAL SECURITIES ACCORDING TO A MERRILL PAMPHLET IF LONGTERM RATES FALL ONE PERCENTAGE POINT OVER THE NEXT YEAR THE PRICE OF ONE TYPE OF TEEMS WOULD RISE NEARLY 90 MORE FOR EACH 1000 FACE VALUE THAN WOULD THE PRICE OF A PLAINVANILLA 20YEAR BOND BUT IF LONGTERM RATES RISE ONE PERCENTAGE POINT OVER THE NEXT YEAR THE SAME TEEMS'S VALUE WOULD DROP NEARLY 60 MORE FOR EACH 1000 OF FACE VALUE THAN WOULD A PLAINVANILLA BOND THE RESULTS COULD BE EVEN MORE DAMAGING IF SHORTTERM RATES ROSE AS WELL ACCORDING TO SAMUEL B CORLISS JR MANAGING DIRECTOR OF MUNICIPAL DERIVATIVES AT MERRILL LYNCH TEEMS ARE BEING MARKETED ON A VERY SELECTIVE BASIS AND UNLIKE MANY INVERSE FLOATERS SOLD TO MUTUAL FUNDS YIELDS ON TEEMS WON'T DROP TO ZERO IF SHORTTERM RATES RISE SHARPLY THE ONES SOLD BY PUERTO RICO FOR EXAMPLE HAVE A 3 MINIMUM YIELD MERRILL BROKERS ARE CONTACTING ONLY AFFLUENT CLIENTS SAYS MR CORLISS FOLLOWING A RULE OF THUMB HE DOESN'T THINK INVESTORS SHOULD HAVE MORE THAN 10 OF THEIR PORTFOLIO IN TEEMS THAT SUGGESTS THE TARGETED INVESTOR WOULD HAVE AT LEAST 250000 IN HIS TOTAL INVESTMENT PORTFOLIO BUT MERRILL ISN'T NECESSARILY GOING TO SAY NO TO INVESTORS WHO WANT TO BUY MORE SAYS MR CORLISS BOND MUTUAL FUND MANAGERS HAVE SAID THAT 5 IS A MANAGEABLE HOLDING OF INVERSE FLOATERS IN A BOND FUND IN ITS LITERATURE MERRILL SAYS THAT TEEMS ARE NOT A RECOMMENDED PURCHASE FOR INVESTORS WHO ARE SENSITIVE TO VARIABLE INCOME OR PRICE VOLATILITY OR DON'T UNDERSTAND HOW TEEMS WORK OR ARE LOOKING TO MAKE SHORTTERM GAINS OR ARE IN A LOW INCOMETAX BRACKET DESPITE THE ADDED INTERESTRATE RISKS OF A TEEMS COMPARED TO A PLAINVANILLA BOND MERRILL LYNCH DOESN'T LIKE TO THINK OF INVERSE FLOATERS AS A BET ON THE DIRECTION OF INTEREST RATES SAYS MR CORLISS INVESTORS WHO BUY THEM ARE NOT REALLY MAKING A BET THEY ARE TRYING TO STRUCTURE A PORTFOLIO THAT GIVES THEM THE HIGHEST RATE OF RETURN CONSISTENT WITH THE LEVEL OF RISK THEY WISH TO ASSUME MR CORLISS SAYS THE RISKS OF BUYING A TEEMS WOULD BE SIMILAR TO THAT OF INVESTING IN A LEVERAGED MUNICIPAL BOND FUND JAMES ERICKSON CHIEF INVESTMENT OFFICER IN THE TAXEXEMPT GROUP AT PUTNAM ONE OF THE BIG HOLDERS OF INVERSE FLOATERS AMONG MUTUAL FUNDS SAYS THAT OVER TIME YOU'RE GOING TO EARN MORE WITH INVERSE FLOATERS THAN WITH STRAIGHT BONDS BECAUSE OF THE LARGE GAP BETWEEN LONGTERM AND SHORTTERM INTEREST RATES BUT I THINK YOU BETTER BE CAREFUL WHEN BUYING THEM HE WARNS MERRILL PLANS TO MARKET MORE TEEMS IN THE NEAR FUTURE DEPENDING ON HOW THE LAST ISSUE GOES SAYS MR CORLISS WE'RE BEING VERY CAREFUL HE SAYS IT'S NOT LIKE WE'RE DOING 100 MILLION FOR SOMEONE NEXT WEEK BUYING RELATED TO MUNICIPAL DEFEASANCE PROGRAMS AND FAVORABLE ECONOMIC DATA HELPED BOOST THE PRICES OF TREASURYS MATURING IN TWO TO 10 YEARS VOLUME WAS ONCE AGAIN LIMITED WITH MANY INVESTORS CONTENT TO STICK TO THE SIDELINES AHEAD OF THE MARCH EMPLOYMENT REPORT SCHEDULED TO BE RELEASED FRIDAY EXPECTATIONS CENTER ON A 100000 INCREASE IN NONFARM PAYROLL EMPLOYMENT FOR THE MONTH WHICH WOULD FOLLOW A 365000 INCREASE IN FEBRUARY MANY TRADERS SAID THE MARKET IS ALSO BETTING THE LARGE FEBRUARY GAIN WILL BE REVISED DOWNWARD TRADING FOCUSED MOSTLY ON ANOTHER ROUND OF BUYING RELATED TO DEFEASANCE OF MUNICIPAL DEBT IN A DEFEASANCE PROGRAM STATE AND LOCAL GOVERNMENTS TAKE ADVANTAGE OF LOW INTEREST RATES BY ISSUING NEW DEBT TO PAY OFF OLDER HIGHINTEREST SECURITIES BUT UNTIL THE OUTSTANDING DEBT CAN BE CALLED THE PROCEEDS FROM THE NEW ISSUES ARE INVESTED IN TREASURYS THE LONG BOND EVEN FAILED TO MAINTAIN GAINS POSTED AT MIDMORNING IN RESPONSE TO NEWS SHOWING AN EROSION OF CONSUMER CONFIDENCE THE CONFERENCE BOARD REPORTED ITS SENTIMENT INDEX FELL TO 626 IN MARCH FROM 685 IN FEBRUARY A BIGGER DECLINE THAN MOST HAD EXPECTED MOST OF THE ACTION TOOK PLACE IN THE PRIMARY SECTOR OF THE MUNICIPAL MARKET WHERE MORE THAN 2 BILLION OF BONDS WERE BROUGHT TO MARKET THE SECONDARY MARKET FARED PRETTY WELL DESPITE ALL THE NEW SECURITIES AND PRICES FINISHED 1/4 POINT LOWER TO 3/8 POINT HIGHER GAINERS INCLUDED THE MICHIGAN PUBLIC POWER AGENCY'S 525 REVENUE REFUNDING BONDS OF 2018 WHICH CLOSED 1/8 POINT HIGHER AT 91 1/8 TO YIELD 590 IN THE PRIMARY MARKET THE SPOTLIGHT WAS ON NEW YORK CITY'S 7665 MILLION FISCAL 1993 SERIES D GENERAL OBLIGATION REFUNDING BOND ISSUE WHICH WAS BROUGHT TO THE MARKET BY A GROUP OF UNDERWRITERS LED BY MERRILL LYNCH & CO THE OFFERING INCLUDED 6293 MILLION OF FIXEDRATE BONDS AND 1373 MILLION OF DERIVATIVE SECURITIES YIELDS FOR THE FIXEDRATE BONDS RANGED FROM 325 FOR NOTES MATURING IN 1994 TO 635 FOR BONDS MATURING IN 2016 MOODY'S INVESTORS SERVICE INC HAS RATED THE FIXEDRATE SECURITIES BAA1 AND STANDARD & POOR'S CORP HAS ASSIGNED A SINGLEAMINUS RATING DERIVATIVES FOR THE NEW YORK CITY ISSUE WERE PRICED BY CITICORP SECURITIES MARKETS INC AND LEHMAN BROTHERS CITICORP SECURITIES IS THE UNDERWRITER FOR A ZEROBASIS RISK SWAP ZEBRA SWAP TOTALING 636 MILLION NEW YORK CITY IS ENTERING INTO SWAP TRANSACTIONS WITH CITICORP SECURITIES THAT WILL ALLOW THE CITY TO OBTAIN FIXED RATES FOR VARIABLERATE DEBT THE CITY HAS LOCKED IN A FIXED RATE OF 300 FOR 10 MILLION OF FLOATINGRATE SECURITIES THAT WILL MATURE IN 1994 OFFICIALS HAVE ALSO SECURED A FIXED RATE OF 359 FOR 536 MILLION OF FLOATINGRATE SECURITIES THAT WILL MATURE IN 1995 CITICORP SECURITIES WILL TAKE ON THE INTERESTRATE RISK INVOLVED WITH THE DEBT THE FIRM SAYS THE INCLUSION OF THE ZEBRA SWAP IN THE NEW YORK CITY ISSUE IS BELIEVED TO BE THE FIRST TIME SUCH A TRANSACTION HAS BEEN USED FOR A PORTION OF A MUNICIPAL REFUNDING THE OTHER DERIVATIVES ARE 736 MILLION OF LEHMAN BROTHERS' SELECT AUCTION VARIABLE RATE SECURITIES SAVRS AND RESIDUAL INTEREST BONDS RIBS SAVRS AND RIBS ARE ALSO KNOWN BY THEIR GENERIC NAMES FLOATERS AND INVERSE FLOATERS RESPECTIVELY COMPANIES OFFERED SOME 1 BILLION OF DEBT MATURING IN 10 YEARS OR LESS REFLECTING STRONGER INVESTOR DEMAND FOR INTERMEDIATE PAPER AMONG THE NOTABLE ISSUERS WAS DEAN WITTER DISCOVER & CO WHICH OFFERED 350 MILLION OF THREEYEAR NOTES IT WAS THE SECOND TRIP TO THE DEBT MARKET THIS MONTH FOR THE SEARS ROEBUCK & CO SPINOFF DEAN WITTER SOLD ITS THREEYEAR NOTES AS 5 SECURITIES PRICED TO YIELD 504 OR 070 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE THE NONCALLABLE ISSUE RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS & CO DELTA AIR LINES WAS ALSO ACTIVE PRICING A 275 MILLION TWOPART ISSUE OF EQUIPMENT PASSTHROUGH CERTIFICATES WHICH ARE SECURITIES RELATED TO AIRLINE EQUIPMENT THE AIRLINE ANNOUNCED PLANS MONDAY TO RETIRE PART OF ITS FLEET AND FURLOUGH PILOTS IN A BID TO RETURN TO PROFITABILITY YESTERDAY'S ISSUANCE WAS CONFINED TO INTERMEDIATE MATURITY PAPER AS LONGTERM RATES ROSE WHEN THE TREASURY CURVE STEEPENED SEASONED INVESTMENTGRADE ISSUES TRACKED THE TREASURY MARKET WITH BONDS MATURING IN THREE TO 10 YEARS UP 1/8 WHILE LONGERDATED PAPER FELL 1/8 JUNK BONDS SLIPPED 1/8 IN MOSTLY DEALERDRIVEN ACTIVITY A PUSH BY WALL STREET FIRMS TO BOOST THEIR MORTGAGESECURITIES UNDERWRITING VOLUME BY THE END OF THIS CALENDAR QUARTER CONTINUED TO LIFT MORTGAGE SECURITIES PRICES AND NEARLY 2 BILLION OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT AND STRIPPED SECURITIES WERE ANNOUNCED BRINGING THE WEEK'S VOLUME TO 3 BILLION FIRSTQUARTER MORTGAGE SECURITIES LEAGUE TABLES ARE EXPECTED TO BE RELEASED TODAY BY SECURITIES DATA CO AS TYPICALLY HAPPENS NEAR THE END OF EACH QUARTER FIRMS ARE TRYING TO SECURE LEADING POSITIONS IN THE RANKINGS WHICH ARE BASED ON VOLUME OF SECURITIES UNDERWRITTEN MORTGAGESECURITIES PURCHASES WERE ALL LEAGUETABLE RELATED SAID A CONVENTIONAL MORTGAGE SECURITIES TRADER CITING DEMAND FOR REMIC AND STRIPS COLLATERAL BY DEALERS LOOKING TO ENHANCE THEIR RANKINGS WHILE THE PRIMARY MARKET REVOLVED AROUND ACTIVE REMIC ISSUANCE THE SECONDARY ARENA HAS BEEN GEARED MAINLY TO PREPAYMENT DATA TO BE REPORTED OVER THE NEXT WEEK THOMAS D LAURICELLA AND CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9303310037 930331 LAW PROSECUTOR SAYS CLIFFORD WAS ARCHITECT OF BCCI'S 1982 TAKEOVER OF US BANK BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A STATE PROSECUTOR ASSERTED THAT CLARK CLIFFORD WAS THE ARCHITECT OF AN ALLEGEDLY CORRUPT SCHEME TO BUY FIRST AMERICAN BANKSHARES INC OF WASHINGTON DC USING MIDDLE EASTERN FRONT MEN ASSISTANT DISTRICT ATTORNEY JOHN MOSCOW'S ALLEGATION THAT MR CLIFFORD TOLD THOSE PLANNING THE PURCHASE TO FIND WEALTHY PEOPLE IN THE PERSIAN GULF WILLING TO COME TO TESTIFY FIND PEOPLE WHO WILL LIE FOR YOU IS THE FURTHEST PROSECUTORS HAVE GONE SO FAR IN HOLDING MR CLIFFORD A FORMER SECRETARY OF DEFENSE AND ADVISER TO US PRESIDENTS RESPONSIBLE FOR THE ALLEGED ILLEGAL TAKEOVER OF FIRST AMERICAN UNTIL NOW THE GOVERNMENT HAD NAMED MR CLIFFORD AS ONE OF A GROUP OF CONSPIRATORS WHO PERPETRATED AN ALLEGEDLY FRAUDULENT BCCIBACKED TAKEOVER OF FIRST AMERICAN IN 1982 MR MOSCOW MADE THE ALLEGATION IN HIS OPENING STATEMENT YESTERDAY IN THE TRIAL IN NEW YORK STATE COURT OF ROBERT ALTMAN MR CLIFFORD'S LAW PARTNER BCCI OR BANK OF CREDIT & COMMERCE INTERNATIONAL WAS CLOSED BY REGULATORS IN JULY 1991 AFTER DISCOVERY OF WIDESPREAD FRAUD MESSRS CLIFFORD AND ALTMAN ALONG WITH OTHER LAWYERS REPRESENTED BCCI IN THE US MESSRS CLIFFORD AND ALTMAN WHO HAVE CONSISTENTLY DENIED ALL THE CHARGES AGAINST THEM WERE INDICTED BY BOTH FEDERAL AND STATE GRAND JURIES IN JULY 1992 MR ALTMAN IS NOW ON TRIAL FOR BANK FRAUD AND BRIBERY CHARGES WHILE THE INDICTMENT AGAINST MR CLIFFORD HAS BEEN POSTPONED PENDING HIS RECOVERY FROM HEART SURGERY THIS MONTH IN HIS OPENING STATEMENT MR ALTMAN'S DEFENSE COUNSEL GUSTAVE NEWMAN RIDICULED THE STATE'S CASE AGAINST HIS CLIENT MR ALTMAN IS BEING USED AS A SCAPEGOAT FOR THE GOVERNMENT'S OWN FAILURE TO UNCOVER FRAUD AT BANK OF CREDIT & COMMERCE INTERNATIONAL MR NEWMAN SAID WHAT YOU HAVE HERE IS A COVERUP BY REGULATORS AND BY PROSECUTORS MR NEWMAN TOLD THE JURY OF EIGHT WOMEN AND FOUR MEN MR ALTMAN IS BEING PROSECUTED FOR WHO THE SENIOR PARTNER OF THE FIRM WAS SAID MR NEWMAN ALLUDING TO MR CLIFFORD HE ALSO CALLED THE TRIAL A MEDIA SHOW BEING PUT ON FOR POLITICAL REASONS THE PROSECUTORS MR NEWMAN SAID HAD REVISED HISTORY TO MAKE BCCI'S ROLE SEEM MORE INIQUITOUS THAN IT WAS HE ARGUED THAT MESSRS ALTMAN AND CLIFFORD HAD ALWAYS ACTED RESPONSIBLY IN THEIR CAPACITIES AS TOP EXECUTIVES OF FIRST AMERICAN THEY HAD RUN THE BANK WELL AND HADN'T TAKEN ORDERS FROM BCCI MR NEWMAN SAID THOUGH THEY HAD ON OCCASION CONSULTED BCCI BUT IN THE PROSECUTION'S OPENING STATEMENT MR MOSCOW SET OUT HOW STATE PROSECUTORS BELIEVE THAT MR ALTMAN HELPED IN THE ALLEGED CORRUPT SCHEME TO GIVE BCCI SECRET AND ILLEGAL OWNERSHIP AND MANAGEMENT OF US FINANCIAL INSTITUTIONS LIKE FIRST AMERICAN HE ALSO ALLEGED THAT MR ALTMAN TOOK BRIBES IN THE FORM OF EXCESSIVE LEGAL FEES AND A FAVORABLE STOCK DEAL IN RETURN FOR HIS FAVORS FOR BCCI AND THAT HE ASSISTED IN MAKING FALSE FILINGS TO US REGULATORS MR MOSCOW INDICATED THAT THE PROSECUTION WILL RELY ON THE EVIDENCE OF KAMAL ADHAM AN ADVISER TO THE SAUDI RULING FAMILY WHO WAS NAMED AS ONE OF THE MAIN INVESTORS IN A CONTESTED TAKEOVER OF FIRST AMERICAN MR ADHAM LAST YEAR PLEADED GUILTY TO BANKING CHARGES AND AGREED TO PAY A FINE OF 105 MILLION BOTH THE PROSECUTION AND THE DEFENSE MADE EXTENSIVE USE OF CHARTS IN THEIR OPENING ARGUMENTS AND TO HIGHLIGHT WHAT REGULATORS UNDERSTOOD ABOUT THE LIMITS ON BCCI'S INVOLVEMENT WITH FIRST AMERICAN MR NEWMAN EVEN DISPLAYED PICTURES OF MR CLIFFORD WITH PRESIDENTS TRUMAN JOHNSON AND CARTER IN AN EFFORT TO SHOW HOW REPUTABLE MR ALTMAN AND HIS LAW PARTNER ARE 9303310036 930331 MARKETING & MEDIA DISNEY UNVEILS PLANS FOR FLORIDA RESORT SEPARATE FROM PARK VERO BEACH FLA WALT DISNEY CO UNVEILED PLANS FOR AN AMBITIOUS NEW TIMESHARE RESORT NEAR HERE POTENTIALLY THE ENTERTAINMENT COMPANY'S FIRST RESORT THAT ISN'T LOCATED AT ONE OF ITS THEME PARKS THE MASTER PLAN CALLS FOR CONSTRUCTION OF A 120ROOM HOTEL 320 VILLAS A SIXACRE LAKE AN AMPHITHEATER AND OTHER AMENITIES ON 70 ACRES OF BEACHFRONT AND ADJOINING PROPERTY THE SITE IS ABOUT A TWOHOUR DRIVE SOUTH OF WALT DISNEY WORLD NEAR ORLANDO FLA WE'VE BEEN INTERESTED IN TRYING TO CREATE THE DISNEY EXPERIENCE OUTSIDE OF THE THEME PARKS AND TO PROVIDE THE PROTOTYPICAL FLORIDA BEACH EXPERIENCE SAID STEVEN CARPLES DIRECTOR OF MARKETING FOR DISNEY'S DISNEY VACATION DEVELOPMENT INC UNIT MR CARPLES SAID DISNEY IS ALSO LOOKING AT A VARIETY OF SITES IN ORLANDO THE EAST AND WEST COASTS OF THE US AND INTERNATIONALLY FOR OTHER SITES THAT WOULD EXPAND CHOICES AVAILABLE TO DISNEY VACATION CLUB MEMBERS OTHER ANNOUNCEMENTS THIS YEAR ARE FEASIBLE HE SAID DISNEY LAUNCHED THE CLUB IN DECEMBER 1991 WITH A 500HOME TIMESHARE RESORT ON LAKE BUENA VISTA GOLF COURSE AT WALT DISNEY WORLD NEARLY 4000 FAMILIES HAVE PURCHASED VACATION POINTS SO FAR MR CARPLES SAID THESE POINTS WHICH CAN BE USED AT OTHER DISNEY ATTRACTIONS AND UNAFFILIATED HOTELS WOULD ALSO BE GOOD AT THE VERO BEACH RESORT DISNEY PRESENTED ITS PLANS PUBLICLY FOR THE FIRST TIME YESTERDAY AT A MEETING OF THE INDIAN COUNTY BOARD OF COMMISSIONERS ASSUMING THE PROJECT RECEIVES THE NECESSARY GOVERNMENT APPROVALS CONSTRUCTION COULD BEGIN NEXT SPRING WITH OPENING OF THE FIRST PHASE IN THE SUMMER OF 1995 DISNEY SAID 9303310035 930331 REVIEW & OUTLOOK EDITORIAL FRANCE'S CHANCE PERHAPS FRANCE DOESN'T DESERVE EDOUARD BALLADUR AFTER AN ELECTION CAMPAIGN THAT WAS A TRIUMPH OF POMPOSITY OVER SUBSTANCE FRANCE NOW HAS A PRIME MINISTER WITH INTELLECTUAL WEIGHT THE PROFILES IN YESTERDAY'S FRENCH PRESS EMPHASIZED HIS PERSONAL QUALITIES SERIOUS COMPETENT MORALLY IRREPROACHABLE WAS FIGARO COLUMNIST GEORGE SUFFERT'S WIDELY SHARED DESCRIPTION MR BALLADUR IS ALSO A MAN WITH A SOPHISTICATED UNDERSTANDING OF THE GLOBAL ECONOMY THE EFFECTS OF CURRENCY FLUCTUATIONS AND THE NEED TO EMPHASIZE GROWTHORIENTED POLICIES OVER AUSTERITY POLICIES WHEN SUCH A RARE POLITICIAN COMES INTO POWER CARLOS SALINAS IN MEXICO VACLAV KLAUS IN THE CZECH REPUBLIC GOOD THINGS USUALLY HAPPEN IF JACQUES CHIRAC WANTS TO BE ELECTED PRESIDENT IN TWO YEARS HE HAD BETTER LET MR BALLADUR MAKE A BOLD START THE CONVENTIONAL VIEW IS THAT THE NEW FRENCH CABINET WILL HAVE TO BALANCE BETWEEN MITTERRAND AND CHIRAC BETWEEN CHIRAC AND D'ESTAING AND BETWEEN THE GATT AND THE FARMERS THERE WILL BE PRIVATIZATIONS BUT OTHERWISE NO DRAMATIC DEPARTURES FROM THE PREVIOUS GOVERNMENT SUCH A VIEW UNDERESTIMATES THE DEPTH OF FRENCH MALAISE THESE ELECTION RESULTS WERE INDEED THE FINAL SOMBER DEATH KNELL OF SOCIALISM BUT THEY WERE ALSO A REJECTION OF THE INSTITUTIONAL SMUGNESS OF FRENCH GOVERNMENT THE FRENCH SOCIALISTS GAVE UP REAL SOCIALISM IN THE EARLY '80S SINCE THEN THEY'VE BEEN PURSUING TECHNOCRATIC ACTIVISM THE REFORMULATED FRENCH SOCIALISTS SPOKE OF REFORM AND MODERNIZATION IN MAKING INVESTMENTS IN LONG TERM NEEDS THERE WERE EFFORTS TO AID ENTERPRISES SUCH AS MACHINES BULL TO REVITALIZE FRENCH HIGHTECH THE MOST TYPICAL AND EMBARRASSING EXAMPLE OF THIS STYLE OF GOVERNMENT WAS EDITH CRESSON'S EFFORT TO SCRAMBLE THE ORGANIZATIONAL STRUCTURE OF THOMSON AND CEAINDUSTRIE FOR THE SAKE OF GOD KNOWS WHAT THE SOCIALISTS LIKE AMERICAN DEMOCRATS WERE IN LOVE WITH THE LEVERS OF ADMINISTRATION FIDDLING WITH INCOMES THROUGH THE MINIMUM WAGE THEY THREW TENS OF THOUSANDS OF FRANCE'S LEAST SKILLED WORKERS OUT OF THE JOB MARKET THEY LOVED SUMMITS THEY WERE THE STANDARDBEARERS OF THE BRUSSELS DREAM ONE OF THEIR GUIDING LIGHTS MICHEL ROCARD WAS BEATEN LAST WEEKEND BY A LOCAL MAYOR WHO FIXATED ON LOCAL PROBLEMS IT WAS THAT WAY ALL OVER FRANCE PEOPLE CONCLUDED THAT THE REFORMULATED SOCIALISTS HAD MERELY TRADED A FAILED ECONOMIC PHILOSOPHY FOR SNOBBERY AND ELITISM THE SOCIALISTS COULD NEVER COME TO TERMS WITH THE UNPREDICTABLE UNMANAGEABLE NATURE OF REAL JOB CREATION AND ECONOMIC GROWTH INSTEAD THEY TINKERED WITH EXISTING JOBS AND LARGE ENTERPRISES MOREOVER THE REFORMULATED LEFT COULD NEVER GET ITS MIND AROUND THE FACT THAT TO CREATE A NEW COMPANY SOMEBODY IS GOING TO HAVE TO GET RICH WE'VE BEEN READING FRENCH PRESS PROFILES OF THE HEROES IN THE FIGHT AGAINST UNEMPLOYMENT THE PROFILES ARE ALMOST ALWAYS ABOUT ACTIVISTS ADMINISTRATORS OR THOSE WHO RUN TRAINING PROGRAMS THEY ARE ALMOST NEVER ABOUT BUSINESSMEN WHO ACTUALLY CREATE JOBS THE RIGHT HAS THE OPPORTUNITY TO BREAK THROUGH THIS DISTRUST OF GOVERNMENT SNOBBERY BUSINESS AS USUAL WON'T DO WITH ITS AWESOME MAJORITIES IN PARLIAMENT IT MUST MAKE A BOLD DASH FOR JOB CREATION BY CUTTING TAXES TO ATTRACT INVESTMENT TO NEW AND SMALL COMPANIES THE DONOTHINGS SAY THE DEFICIT PREVENTS THIS BUT THEY HAVE OVERSEEN AN ECONOMY THAT HAS A 10 UNEMPLOYMENT RATE EVEN WHEN TIMES ARE GOOD MORE BROADLY FRANCE HAS TO DECIDE IF IT WANTS TO BE A DYNAMIC INTERNATIONAL ECONOMY WITH A SMALLER AGRICULTURAL SECTOR OR A LARGE AGRICULTURAL CIVILIZATION WITH A GLOBAL TRADE COMPONENT MODELED ON ALBANIA IT COULD BE THAT THE FRENCH ACTUALLY WANT TO FORGO THE BENEFITS OF A DYNAMIC GLOBAL ECONOMY FOR THE SAKE OF AN UNCHANGING RURAL CULTURE JUDGING FROM THE ELECTION RHETORIC ONE COULD EASILY CONCLUDE THAT IT WERE SO AND IF THAT IS THEIR DEMOCRATIC CHOICE THEN THE REST OF THE WORLD WILL HAVE TO FIGURE OUT HOW TO WORK AROUND FRANCE BUT THE ISSUE HAS NOT BEEN HONESTLY DEBATED THERE WAS A TABOO DURING THE CAMPAIGN AGAINST TALKING ABOUT THE COSTS OF PROTECTIONISM AND FOR THE MOST PART FRENCH POLITICIANS ARE GREAT RESPECTERS OF TABOO EVEN MR BALLADUR WAS MAKING HAWKISH SOUNDS ON TRADE BETWEEN CLINTONESQUE WAFFLES AND THE FRENCH RIGHT THE PROSPECTS FOR GATT DO NOT LOOK GOOD BUT THE UTTER COLLAPSE OF THE LEFT GIVES THE RIGHT THE OPPORTUNITY TO BREAK THE CURRENT MODE OF AGRICULTURAL POLITICS WHEREBY FARMERS DICTATE POLICIES BY RIOT AND THUGGERY BECAUSE OF ITS PARLIAMENTARY DOMINANCE MR BALLADUR'S GOVERNMENT HAS A RARE OPPORTUNITY TO BREAK THE IRON GRIP OF THE FARMERS TO PURSUE RECOGNIZABLE PRINCIPLES AND TO GALVANIZE THE VAST MAJORITY OF FRENCH WORKERS WHO BENEFIT BY OPEN WORLD TRADE THE FRENCH VOTERS HAVING MASSIVELY REPUDIATED THE OLD GOVERNMENT ARE SURELY WILLING TO LOOK AT SOMETHING FRESH AT THE MOMENT THAT IS MR BALLADUR'S OPPORTUNITY 9303310034 930331 INTERNATIONAL BRIEF WATERFORD WEDGWOOD PLC PRETAX LOSS WIDENED IN '92 AFTER RESTRUCTURING CHARGES WATERFORD WEDGWOOD PLC SAID ITS 1992 ACCOUNTS SHOWED PRETAX LOSSES WIDENING TO 170 MILLION PUNTS OR IRISH POUNDS 254 MILLION FROM 27 MILLION PUNTS AFTER RESTRUCTURING CHARGES TOTALING 184 MILLION PUNTS SALES FELL 63 TO 2736 MILLION PUNTS THE IRISH FINE CHINA AND CRYSTAL COMPANY SAID THE RESTRUCTURING WAS AIMED AT LOWERING OVERHEADS AND PUTTING THE GROUP ON A BETTER FOOTING TO ACHIEVE PROFITS OVER THE LONGER TERM IT SAID 1992 WAS A WATERSHED YEAR IN THIS RESPECT NOTING THAT COST CONTROL HELPED OPERATING PROFIT TO HOLD STEADY AT 91 MILLION PUNTS DESPITE THE 63 SALES DECLINE IN THE FACE OF RECESSIONARY CONDITIONS IN MOST MARKETS WATERFORD WEDGWOOD CHAIRMAN DONALD BRENNAN SAID HE EXPECTS THE GROUP TO CONTINUE TO FACE TOUGH TRADING IN THE NEAR TERM AND TO MAKE PROGRESS AT CONTROLLING COSTS 9303310033 930331 FOREIGN EXCHANGE WEAK DOLLAR SLIDES FURTHER ON NEWS CONFIDENCE INDEX TRAILED EXPECTATIONS BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A WEAK DOLLAR SLID EVEN LOWER TUESDAY ON NEWS THAT US CONSUMERS AREN'T AS CONFIDENT AS MANY ANALYSTS HAD EXPECTED THE CURRENCY FELL TO ITS LOWEST LEVEL IN MORE THAN A MONTH AGAINST THE MARK AS THE GERMAN CURRENCY GAINED ON A BROAD FRONT LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16173 MARKS DOWN FROM 16263 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11656 YEN OFF FROM 11685 YEN STERLING WAS TRADING AT 14935 UP FROM 14920 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16177 MARKS AND AT 11651 YEN THAT WAS THE FINAL KICKER SAID JAY TUCKER DIRECTOR OF FOREIGN EXCHANGE AT FIRST BOSTON CORP THE MARKET IS AS BEARISH NOW AS IT WAS BULLISH WHEN THE DOLLAR WAS AT 165 MARKS HE SAID IN THE WAKE OF THE REPORT THE DOLLAR FELL AS FAR AS 16160 MARKS ITS LOWEST LEVEL SINCE FEB 24 WHEN IT BOTTOMED OUT AT 16135 MARKS DEALERS SAID GROWING FRUSTRATION WITH THE SLOW PACE OF GERMAN MONETARY EASING HAS SAPPED THE DOLLAR'S STRENGTH AS A RESULT IT'S ESPECIALLY VULNERABLE TO SIGNS THE US ECONOMIC RECOVERY THE OTHER MAJOR LONGTERM FACTOR SUPPORTING THE DOLLAR IS FLAGGING RICHARD KOSS A VICE PRESIDENT AT CANADIAN IMPERIAL BANK OF COMMERCE SAID THE DOLLAR SUFFERS FROM RECURRING QUESTIONS ABOUT HOW FAST THE GERMANS ARE GOING TO LOWER RATES AND BY HOW MUCH ON TUESDAY THE BUNDESBANK IN ANNOUNCING THIS WEEK'S MONEYMARKET OPERATION THROUGH WHICH THE GERMAN CENTRAL BANK INFLUENCES THE RATE BANKS CHARGE EACH OTHER FOR SHORTTERM LOANS SIGNALED IT WON'T LOWER THE RATE SIGNIFICANTLY FROM LAST WEEK'S 825 DEALERS SAID EVEN IF THE BUNDESBANK TRIMS THE RATE SAID MR KOSS IT WILL BE A VERY WISHYWASHY SORT OF EASING LESS THAN A QUARTER OF A PERCENTAGE POINT ALSO TUESDAY A BUNDESBANK OFFICIAL REITERATED THE CENTRAL BANK'S CONCERN THAT FALLING GERMAN RATES NOT SET OFF A MASSIVE DOLLAR RALLY WHICH WOULD FUEL INFLATION IN GERMANY TO SAFEGUARD THE MARK'S VALUE HE SAID EASING WILL COME IN SMALL STEPS ALTHOUGH HIS COMMENTS WEREN'T PARTICULARLY SURPRISING DEALERS SAID THEY SERVED TO REINFORCE THE MARKET'S GROWING DOUBTS ABOUT JUST HOW SOON GERMAN RATES WILL FALL FURTHER DEALERS SAID THE MARK'S STRENGTH IN CROSS TRADING FURTHER UNDERMINED THE DOLLAR TUESDAY DEALERS SAID THE GERMAN CURRENCY SURGED AGAINST THE LIRA AS ITALY'S POLITICAL SCANDAL DEEPENED THE MARK BRIEFLY BROKE ABOVE 1000 LIRE IN EUROPEAN TRADING BEYOND THE PREVIOUS HISTORIC HIGH OF 992 LIRE SET MONDAY DEALERS SAID INTERVENTION BY THE BANK OF ITALY COMBINED WITH HEAVY TECHNICAL RESISTANCE AROUND 1000 LIRE A MARK KEPT THE LIRA'S DECLINES LIMITED TUESDAY LATE IN NEW YORK THE MARK WAS QUOTED AT 99116 LIRE UP FROM 98770 LIRE MONDAY TUESDAY ITALY'S LEADERSHIP SOUGHT TO STANCH THE POLITICAL HEMORRHAGING EVEN AS THE SCANDALS CUT DEEPER INTO THE GOVERNMENT THE POUND ALSO GAVE GROUND TO THE MARK TUESDAY IN A MOVE DEALERS DESCRIBED AS LARGELY TECHNICAL LATE IN NEW YORK THE POUND WAS QUOTED AT 24146 MARKS DOWN FROM 24244 MARKS MONDAY DEALERS SAID THE KEY TECHNICAL RESISTANCE FOR THE POUND WAS AGAINST THE DOLLAR WHERE THE BRITISH CURRENCY COULDN'T BREAK ABOVE 150 THE POUND HASN'T TOPPED THAT LEVEL SINCE JAN 28 WHEN IT TOUCHED 15060 9303310032 930331 ECONOMY SENATE REPUBLICANS THREATEN TO BLOCK CLINTON STIMULUS PACKAGE UNTIL IT IS CUT BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S ECONOMIC STIMULUS BILL CONTINUES TO FACE STIFF RESISTANCE IN THE SENATE WHERE REPUBLICANS ARE THREATENING TO BLOCK PASSAGE UNTIL THE NEARLY 163 BILLION PACKAGE IS PARED BACK OVERCOMING AN EMBARRASSING LOSS MONDAY NIGHT THE WHITE HOUSE WON A CRUCIAL 5248 TEST VOTE YESTERDAY BUT THE NARROW MARGIN ONLY TESTIFIED TO THE DEMOCRATS' DIFFICULTIES IN CONFRONTING A UNITED REPUBLICAN OPPOSITION A 5443 PARTY LINE ROLL CALL LAST NIGHT DEMONSTRATED MORE RESOLVE YET THE GOP CLEARLY RETAINS THE SUPPORT IT NEEDS TO PREVENT THE MAJORITY FROM CUTTING OFF DEBATE WE HAVE TO MAKE OUR STAND SOMEWHERE SAID MINORITY LEADER ROBERT DOLE OF KANSAS AND AFTER SUFFERING REPEATED DEFEATS IN THE BUDGET DEBATE EARLIER THIS MONTH REPUBLICANS SEEM EMBOLDENED NOW BY DEMOCRATS' EVIDENT DISCOMFORT SURROUNDING THE STIMULUS BILL WE'RE LOADED FOR BEAR OR BYRD JOKED SEN NANCY KASSEBAUM R KAN IN AN ALLUSION TO SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD THE PRESIDENT'S POINT MAN ON THE BILL AND A CLOSEDDOOR REPUBLICAN CAUCUS YESTERDAY ENDED ON A SPIRITED ALMOST TRIBAL NOTE AS MEMBERS POUNDED THE LUNCHEON TABLE IN ANTICIPATION OF FLOOR COMBAT WITH CONGRESS SCHEDULED TO RECESS THIS WEEKEND FOR THE SPRING HOLIDAYS THE STANDOFF THREATENS TO COMPLICATE PASSAGE OF THE PRESIDENT'S DEFICITREDUCTION PLAN AND COMPANION LEGISLATION TO RAISE THE GOVERNMENT'S BORROWING AUTHORITY TO FINANCE THE FEDERAL DEBT HOUSE AND SENATE NEGOTIATORS REACHED A TENTATIVE AGREEMENT LAST NIGHT ON THE BUDGET BLUEPRINT WHICH WOULD REORDER SPENDING PRIORITIES AND CALL FOR MAJOR TAX INCREASES TO ACHIEVE 496 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS AND THE ACCOMPANYING DEBT BILL IS EXPECTED TO RAISE THE CURRENT BORROWING AUTHORITY BY 225 BILLION TO 437 TRILLION THE CONJUNCTION OF THE DEBTMEASURE VOTE AND THE ADDED SPENDING PROMISED NOW BY THE STIMULUS BILL PLAYS TO THE REPUBLICANS' HAND ALL OF THE 163 BILLION WOULD BE DEFICITFINANCED UNDER AN EMERGENCY DECLARATION EXEMPTING THE BILL FROM BUDGET CAPS AND THE MEASURE LEAVES THE PRESIDENT UNUSUAL DISCRETION AS TO HOW THE MONEY WILL BE SPENT DROP IT FROM AIRPLANES IF YOU WANT MOCKED SEN JOHN DANFORTH R MO NONETHELESS THE PRESSURE TO ACT ON THE BORROWING AUTHORITY IS A LEVER OF SORTS FOR THE PRESIDENT AND AFTER REASSERTING ITSELF IN THE SENATE VOTES YESTERDAY THE WHITE HOUSE REMAINED CONFIDENT THAT IT WILL PREVAIL ON THE STIMULUS BILL IF WE CAN GET A TIME CERTAIN WE'LL BE ALL RIGHT SAID AN ADMINISTRATION OFFICIAL THE PASSIONS ARE SUCH THAT SEN DOLE WILL HAVE DIFFICULTY IN HIS OWN CAUCUS IN NEGOTIATING ANY AGREEMENT AND IN AN EFFORT TO APPEASE THE GOP MR BYRD LAST NIGHT REMOVED THE PARLIAMENTARY THICKET HE HAD CREATED TO SHIELD THE BILL FROM WHOLESALE ATTACK THE RESULT WAS TO OPEN THE WAY FOR UPANDDOWN VOTES ON AMENDMENTS SOUGHT BY CONSERVATIVES IN RETURN DEMOCRATS HOPE TO ISOLATE REPUBLICANS AS UNFAIRLY TRYING TO FRUSTRATE THE NEW PRESIDENT I DON'T WANT TO SEE THE PRESIDENT GO TO VANCOUVER WITH THIS BILL MIRED IN A FILIBUSTER SAID MR BYRD IN REFERENCE TO THIS WEEKEND'S SUMMIT WITH RUSSIAN PRESIDENT BORIS YELTSIN CLOSER TO HOME REPUBLICANS ADMIT THEY ARE RELUCTANT TO STAND IN THE WAY OF 4 BILLION IN THE BILL TO FINANCE JOBLESS BENEFITS FOR HUNDREDS OF THOUSANDS OF LONGTERM UNEMPLOYED WORKERS AS ALREADY ADOPTED BY THE HOUSE THE 16 BILLIONPLUS BILL WOULD RELEASE AN ADDITIONAL 32 BILLION FROM FEDERAL TRUST FUNDS FOR TRANSPORTATION PROJECTS AND THE TOTAL PACKAGE IS A MIX OF TRADITIONAL PUBLIC WORKS SPENDING AND LONGERRANGE INVESTMENTS IN EDUCATION AND RESEARCH CONSERVATIVES HAVE TRIED TO EXPLOIT TENSIONS BETWEEN RURAL AND MOREURBAN DEMOCRATS WITH A MAJOR TARGET BEING THE 25 BILLION SET ASIDE FOR COMMUNITY DEVELOPMENT GRANTS TO LOCAL GOVERNMENTS BOTH VOTES YESTERDAY TURNED ON THIS ISSUE AND AFTER LOSING MONDAY NIGHT THE LEADERSHIP SUCCESSFULLY TABLED PROPOSALS THAT WOULD HAVE CUT 104 MILLION FROM THE PACKAGE AND THEN WOULD HAVE KILLED ALL 25 BILLION FIVE DEMOCRATS INCLUDING SENATE ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN AND NEBRASKA SEN BOB KERREY BROKE WITH THE WHITE HOUSE ON THE FIRST 5248 ROLL CALL AND AS A FORMER RIVAL OF THE PRESIDENT SEN KERREY'S OUTSPOKEN CRITICISM OF THE UNDERLYING MEASURE HAS STRAINED RELATIONS WITH THE ADMINISTRATION I WAS TOLD NEBRASKA WAS A SEMIARID STATE AND THEY MAY DROP THE SEMI THE SENATOR JOKED OF THE CHIDING HE RECEIVED FROM FELLOW DEMOCRATS THOUGH OPPOSED TO THE BILL THE NEBRASKAN SAID HE WOULD SUPPORT EXPEDITING ACTION AND GIVE MR CLINTON AN OPPORTUNITY TO WIN FINAL PASSAGE THOUGH MOST OF THE PRESSURE IN THE SENATE IS FROM THE RIGHT THE DEBATE IS BEING CLOSELY WATCHED BY LIBERAL MOREURBAN LAWMAKERS IN THE HOUSE WHO COUNT THE STIMULUS BILL AS A FUNDAMENTAL PART OF THE PRESIDENT'S LARGER ECONOMIC PLAN THE SENATE MODERATES HAVE NOW GOTTEN THE ATTENTION OF HOUSE LIBERALS SAID REP BARNEY FRANK A MASSACHUSETTS DEMOCRAT WHO IS ONE OF THE NEGOTIATORS APPOINTED TO RESOLVE DIFFERENCES ON THE ADMINISTRATION'S DEFICITREDUCTION PLAN HOUSE BUDGET COMMITTEE CHAIRMAN MARTIN SABO D MINN AND HIS SENATE COUNTERPART JAMES SASSER D TENN REACHED A TENTATIVE AGREEMENT LAST NIGHT AMONG THE POINTS OF CONTENTION THE HOUSE TRIMMED ITS PROPOSAL TO REDUCE COSTOFLIVING ADJUSTMENTS FOR FEDERAL RETIREES BY APPLYING IT ONLY TO THOSE WHO RETIRED VOLUNTARILY AND WHO ARE UNDER AGE 62 FOR ITS PART THE SENATE ABANDONED ITS PROPOSAL RAISE 22 BILLION MORE IN TAXES THAN MR CLINTON REQUESTED NEGOTIATORS MADE UP PART OF THE LOST REVENUE BY ACCEPTING THE HOUSE POSITION THAT DISCRETIONARY SPENDING BE HELD AT OR BELOW THE 1993 LEVEL FOR THE NEXT FIVE YEARS THE NEGOTIATORS' TASK WAS COMPLICTED BY NEW ESTIMATES SHOWING THAT MR CLINTON'S PROPOSAL TO REFORM THE FEDERAL STUDENTLOAN PROGRAM WILL RAISE SOME 2 BILLION LESS THAN EXPECTED BUT BOTH CHAMBERS BUILT ENOUGH FLEXIBILITY INTO THEIR BUDGET PROPOSALS THAT THEY COULD DISCARD SOME SAVINGS AND STILL PRODUCE A COMPROMISE YIELDING NEARLY 500 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9303310031 930331 BUSINESS BRIEF TELEBIT CORP ACCORD REACHED TO ACQUIRE MASSACHUSETTS MODEM FIRM TELEBIT CORP SAID IT AGREED TO ACQUIRE OCTOCOM SYSTEMS INC A CLOSELY HELD CHELMSFORD MASS MAKER OF COMPUTER MODEMS FOR STOCK VALUED AT ABOUT 21 MILLION UNDER THE AGREEMENT TELEBIT BASED IN SUNNYVALE CALIF WOULD EXCHANGE FIVE MILLION NEWLY ISSUED SHARES OF TELEBIT STOCK FOR OCTOCOM'S SHARES AT YESTERDAY'S CLOSING STOCK PRICE OF 425 DOWN 125 CENTS IN NATIONAL OVERTHECOUNTER TRADING THE ACQUISITION WOULD BE VALUED AT 2125 MILLION AFTER THE ACQUISITION WHICH STILL REQUIRES SHAREHOLDER APPROVAL TELEBIT WOULD HAVE 125 MILLION SHARES OUTSTANDING TELEBIT A MAKER OF NETWORK ACCESS SYSTEMS WHICH LET DIFFERENT COMPUTERS TALK TO EACH OTHER SAID THE MERGER WILL MAKE THE NEW COMPANY A LEADER IN THE FASTGROWING AREA OF GLOBAL COMPUTING LINKAGE OCTOCOM PRESIDENT JAMES D NORROD WILL BECOME PRESIDENT CHIEF EXECUTIVE OFFICER AND DIRECTOR OF TELEBIT MICHAEL K BALLARD TELEBIT'S CURRENT PRESIDENT AND CHIEF EXECUTIVE WILL REMAIN A DIRECTOR 9303310030 930331 WORTHEN BANKING CORP LITTLE ROCK ARK WORTHEN BANKING CORP SAID SHAREHOLDERS APPROVED ITS ACQUISITION OF STEPHENS DIVERSIFIED LEASING INC FOR STOCK VALUED AT 311 MILLION THE BANK HOLDING COMPANY SAID THE TRANSACTION IS STILL SUBJECT TO REGULATORY APPROVAL STEPHENS IS A LEASING COMPANY OWNED PRIMARILY BY THE STEPHENS FAMILY WHICH ALSO OWNS STEPHENS INC A LITTLE ROCK BASED INVESTMENT BANKING FIRM 9303310029 930331 WHO'S NEWS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC DALLAS GEORGE JUETTEN WAS NAMED VICE PRESIDENT AND CONTROLLER OF THIS ENERGY SERVICES COMPANY EFFECTIVE APRIL 30 MR JUETTEN 45 YEARS OLD WAS A PRICE WATERHOUSE PARTNER HE SUCCEEDS JAMES CORBOY WHO WILL RETIRE WITHIN THE NEXT YEAR MR CORBOY WILL REMAIN A SENIOR VICE PRESIDENT UNTIL THEN 9303310028 930331 BUSINESS BRIEF SPAGHETTI WAREHOUSE INC FISCAL THIRDPERIOD PROFIT WON'T COME UP TO FORECASTS SPAGHETTI WAREHOUSE INC SAID ITS EARNINGS WOULD NOT MEET ANALYSTS' EXPECTATIONS FOR THE FISCAL THIRD QUARTER ENDING SUNDAY SHARES OF THE GARLAND TEXAS RESTAURANT CHAIN WERE QUOTED IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AT 15875 UNCHANGED THE COMPANY SAID IT EXPECTS EARNINGS FOR THE QUARTER OF 15 CENTS TO 18 CENTS A SHARE FIVE CENTS TO NINE CENTS BELOW ANALYSTS' PROJECTIONS THE COMPANY REPORTED NET INCOME OF 24 CENTS A SHARE FOR THE YEAREARLIER PERIOD SPAGHETTI WAREHOUSE SAID POOR WEATHER IN FEBRUARY AND MARCH KEPT CUSTOMERS AWAY IT ALSO CITED A 110000 CHARGE AGAINST EARNINGS RELATED TO THE SETTLEMENT OF LITIGATION INVOLVED IN CLOSING A TEST RESTAURANT IN SOUTH BEND IND SPAGHETTI WAREHOUSE ALSO SAID IT WILL DELAY INDEFINITELY A PLANNED RESTAURANT OPENING IN GRAND RAPIDS MICH BECAUSE OF LEAD CONTAMINATION PROBLEMS AT THE SITE THE RESTAURANT PREVIOUSLY SLATED TO OPEN IN JUNE HAD BEEN EXPECTED TO GENERATE ABOUT 270000 IN INVESTMENT TAX CREDITS IN CONNECTION WITH THE LOCATION'S RESTORATION 9303310027 930331 BUSINESS BRIEF HERMAN'S WORLD OF SPORTING GOODS FIRM PLANS TO SELL OR CLOSE AS MANY AS 132 OF ITS STORES HERMAN'S WORLD OF SPORTING GOODS CARTERET NJ SAID IT PLANS TO SELL OR CLOSE UP TO 132 OF ITS 253 STORES OUTSIDE THE NORTHEAST AND MIDDLE ATLANTIC REGIONS AS PART OF AN EFFORT TO RESTORE PROFITABILITY THE SHORTTERM OBJECTIVE IS TO LOWER COST AS A PERCENTAGE OF SALES TO ABOUT 361 IN FISCAL 1994 DOWN FROM 403 IN THE FISCAL YEAR ENDED APRIL 1992 MARTIN BURKE 39 PRESIDENT AND CHIEF OPERATING OFFICER SAID MESSRS BURKE AND FASOLA RECENTLY LED A BUYOUT OF HERMAN'S AT THE SAME TIME PUT THE COMPANY UNDER CHAPTER 11 PROTECTION 9303310026 930331 BUSINESS BRIEF WILLIAMSSONOMA INC PROFIT MORE THAN DOUBLED FOR RETAILER'S 4TH QUARTER FUELED BY GROWTH IN RETAIL STORE SALES WILLIAMSSONOMA INC SAID NET INCOME FOR ITS FOURTH QUARTER MORE THAN DOUBLED TO 77 MILLION OR 69 CENTS A SHARE FROM 34 MILLION OR 31 CENTS A SHARE A YEAR EARLIER THE PRIOR PERIOD INCLUDED A 2 MILLION RESTRUCTURING RESERVE FOR THE PERIOD ENDING JAN 31 THE SAN FRANCISCO KITCHENWARE RETAILER SAID REVENUE ROSE 11 TO 129 MILLION FROM 1166 MILLION A YEAR EARLIER WILLIAMSSONOMA SHARES CLOSED AT 1275 UP 1 IN OVERTHECOUNTER TRADING NET FOR THE YEAR CLIMBED 12 TO 18 MILLION OR 16 CENTS A SHARE FROM 16 MILLION OR 14 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 10 TO 3449 MILLION FROM 3127 MILLION 9303310025 930331 BUSINESS BRIEF DEL TACO INC FASTFOOD CONCERN SEEKS PROTECTION UNDER CHAPTER 11 DEL TACO INC A MEXICANSTYLE FASTFOOD CHAIN FILED FOR CHAPTER 11 BANKRUPTCY LAW PROTECTION IN SANTA ANA CALIF CITING 94 MILLION IN LIABILITIES AND 138 MILLION IN ASSETS THE COMPANY TAKEN PRIVATE IN A MANAGEMENTLED LEVERAGED BUYOUT THREE YEARS AGO HAS 305 RESTAURANTS IN 13 STATES MOSTLY IN THE SOUTHWEST THERE ARE 175 COMPANYOWNED DEL TACO RESTAURANTS 100 FRANCHISES AND 30 NAUGLES RESTAURANTS ANNUAL SALES OF THE COSTA MESA CALIF CHAIN ARE AROUND 200 MILLION THE PRIMARY REASON FOR THE FILING IS TO RESOLVE THE EXCESS DEBT SITUATION FROM THE PREVIOUS MANAGEMENT CAUSED BY THE LEVERAGED BUYOUT AND THE 1988 MERGER WITH NAUGLES SAID PAUL HITZELBERGER DEL TACO'S VICE PRESIDENT MARKETING HE NOTED THAT THE COMPANY HAS BEEN PROFITABLE FOR THE PAST TWO YEARS DEL TACO'S CHIEF COMPETITOR IS PEPSICO INC'S TACO BELL CORP 9303310024 930331 WHO'S NEWS RYDER CHIEF'S BONUS MORE THAN DOUBLED HIS '92 COMPENSATION MIAMI M ANTHONY BURNS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RYDER SYSTEM INC WAS AWARDED A BONUS IN 1992 THAT MORE THAN DOUBLED HIS COMPENSATION ACCORDING TO THE 1992 PROXY STATEMENT RELEASED THIS WEEK MR BURNS RECEIVED 693750 IN SALARY AND A 810000 BONUS HE ALSO RECEIVED 50000 STOCK OPTIONS IN 1991 HE RECEIVED 650000 IN SALARY A 97500 BONUS AND 45000 STOCK OPTIONS THE TRANSPORTATION COMPANY SAID IT BOOSTED THE BONUS TO REFLECT IMPROVED RESULTS IN THE PAST YEAR IN 1992 RYDER POSTED NET INCOME OF 1239 MILLION OR 151 A SHARE COMPARED WITH 14 MILLION OR FIVE CENTS A SHARE THE YEAR EARLIER REVENUE BARELY BUDGED TO 52 BILLION IN 1992 FROM 51 BILLION IN 1991 BUT THE COMPANY INCREASED PROFIT MAINLY BY COSTCUTTING 9303310023 930331 FINANCING BUSINESS PRAIRIE OIL ROYALTIES CO PRAIRIE OIL ROYALTIES CO CALGARY ALBERTA SAID IT AGREED TO SELL ONE MILLION SPECIAL WARRANTS AT 1538 CANADIAN DOLLARS US1235 EACH TO DEALER BBN JAMES CAPEL INC EACH WARRANT IS EXCHANGEABLE INTO ONE PRAIRIE OIL COMMON SHARE PRAIRIE OIL AN OIL AND GAS EXPLORER AND PRODUCER SAID IT WILL USE THE FUNDS FOR ACQUISITIONS AND EXPANDED EXPLORATION IN WESTERN CANADA PRAIRIE OIL HAS 78 MILLION SHARES OUTSTANDING 9303310021 930331 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH DUTCH SUBSIDIARY TO SUPPLY EQUIPMENT TO CITY IN POLAND AMERICAN TELEPHONE & TELEGRAPH CO SAID ITS DUTCH UNIT RECEIVED A 100 MILLION CONTRACT FROM A POLISH COMPANY TO SUPPLY TELECOMMUNICATIONS EQUIPMENT FOR THE CITY OF GDANSK AT&T NETWORK SYSTEMS INTERNATIONAL A UNIT OF NEW YORKBASED AT&T WILL PROVIDE 200000 DIGITAL TELEPHONE LINES OPTICAL TRANSMISSION SYSTEMS FIBER CABLE EQUIPMENT AND OPERATIONS SYSTEMS FOR NETWORK MANAGEMENT IN THE NORTHERN POLISH CITY IT RECEIVED THE CONTRACT FROM TELEKOMUNICKACJA POLSKA THE ORDER FROM TELEKOMUNICKACJA POLSKA IS PART OF A PROJECT TO MODERNIZE POLAND'S TELECOMMUNICATIONS INFRASTRUCTURE IT FOLLOWS AT&T NETWORK SYSTEMS' RECENT ACQUISITION OF THE POLISH TELECOMMUNICATIONS COMPANY TELFA IN BYDGOSZCZ POLAND AT&T REALIZES THE NECESSITY OF NOT ONLY SUPPLYING PRODUCTS BUT ALSO OF INVESTING IN THE POLISH ECONOMY AT&T SAID THE COMPANY SAID THE INSTALLATION OF THE TELECOMMUNICATIONS SYSTEM WILL BE COMPLETED BY 1995 9303310020 930331 BUSINESS BRIEF GENCORP INC YEAR'S NET EXPECTED TO BE FLAT OR A BIT AHEAD OF 1992 GENCORP INC FAIRLAWN OHIO SAID IT EXPECTS NET INCOME IN FISCAL 1993 TO BE SIMILAR TO OR MODESTLY AHEAD OF YEARAGO RESULTS BEFORE SPECIAL ITEMS IN THE YEAR ENDED NOV 30 1992 GENCORP HAD NET INCOME OF 221 MILLION OR 70 CENTS A SHARE ON SALES OF 194 BILLION THE RESULTS INCLUDED A CHARGE OF 143 MILLION IN A PRESENTATION DELIVERED TO ANALYSTS LAST WEEK AND RELEASED YESTERDAY THE COMPANY SAID ITS GENCORP AUTOMOTIVE UNIT SHOULD SHOW SALES AND EARNINGS GROWTH THAT WOULD ROUGHLY OFFSET DECLINES AT ITS AEROJET UNIT THE COMPANY SAID ITS POLYMER PRODUCTS UNIT'S EARNINGS WILL EQUAL OR SLIGHTLY EXCEED YEARAGO LEVELS GENCORP WILL ALSO BENEFIT FROM LOWER INTEREST EXPENSES 9303310018 930331 MARKETING BRIEF INTERNATIONAL FAMILY ENTERTAINMENT CABLE OPERATOR'S NET INCOME ROSE SHARPLY IN 4TH QUARTER INTERNATIONAL FAMILY ENTERTAINMENT INC SAID FOURTHQUARTER NET INCOME MORE THAN DOUBLED AIDED BY IMPROVED ADVERTISING RATES HIGHER SUBSCRIBER FEES AND LOWER INTEREST EXPENSE THE OPERATOR OF THE FAMILY CHANNEL CABLE TELEVISION NETWORK SAID NET INCOME ROSE TO 63 MILLION OR 23 CENTS A SHARE FROM 28 MILLION OR 20 CENTS A SHARE REVENUE ROSE 20 TO 361 MILLION FROM 301 MILLION AVERAGE SHARES ROSE TO 328 MILLION FROM 294 MILLION THE COMPANY BASED IN VIRGINIA BEACH VA SAID SUBSCRIBER FEES ROSE 18 DUE IN PART TO A 7 INCREASE IN THE NUMBER OF HOUSEHOLDS REACHED BY THE PROGRAMMING CONVERSION OF CONVERTIBLE NOTES REDUCED INTEREST EXPENSE FOR THE QUARTER BY 50 THE COMPANY SAID FOR THE YEAR NET INCOME ROSE TO 296 MILLION OR 117 A SHARE FROM 198 MILLION OR 108 REVENUE ROSE 16 TO 1317 MILLION FROM 1137 MILLION 9303310017 930331 COMMODITIES GOLD FUTURES PRICES SURGE NEARLY 5 AN OUNCE ON BULLISH SENTIMENT BOOSTING OTHER METALS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES SURGED NEARLY 5 AN OUNCE IN EXTREMELY HEAVY VOLUME AS SENTIMENT ABOUT THE PRECIOUS METAL APPEARS TO BE TURNING CAUTIOUSLY BULLISH DEALERS AND ANALYSTS SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY SOARED 490 TO SETTLE AT 33880 AN OUNCE SIGNIFICANTLY ABOVE AN IMPORTANT 335 RESISTANCE LEVEL SHARES IN US GOLDMINING COMPANIES WHICH HAVE JUMPED SOME 20 SINCE THE BEGINNING OF THE YEAR ALSO MOVED SHARPLY HIGHER ESTIMATED TOTAL COMEX GOLD TRADING VOLUME WAS 80000 CONTRACTS THE HIGHEST SINCE DEC 12 1991 WHEN THE CASH GOLD PRICES STOOD AT AROUND 359 AN OUNCE THE STRONGER GOLD FUTURES PRICE HELPED BOOST SILVER FUTURES ON THE COMEX WITH THE ACTIVELY TRADED MAY CONTRACT POWERING UP 147 CENTS TO 390 AN OUNCE PLATINUM FOR JULY DELIVERY SETTLED 490 AN OUNCE HIGHER AT 36250 ON THE NEW YORK MERCANTILE EXCHANGE WHILE PALLADIUM FOR JUNE DELIVERY FINISHED 225 AN OUNCE HIGHER AT 11225 AN OUNCE THE SURGE IN GOLD FUTURES WAS PRETTY MUCH A REACTION TO THE RECENT SUGGESTION OF INFLATIONARY PRESSURES IN THE US ECONOMY AND A RESPONSE TO YESTERDAY'S DECLINE IN THE DOLLAR SAID KEN GETTINGER A SENIOR PRECIOUSMETALS ANALYST WITH UNION BANK OF SWITZERLAND GOLD PRICES TEND TO MOVE INVERSELY TO THE DOLLAR THIS HAS BROUGHT VOLATILITY BACK TO THE MARKET SOMETHING WE HAVEN'T SEEN FOR SEVERAL MONTHS MR GETTINGER SAID THE UBS VICE PRESIDENT PREDICTED THAT THE NEXT RESISTANCE LEVEL FOR JUNE GOLD FUTURES CONTRACTS WOULD BE 340 AN OUNCE WITH 350 AN OUNCE IN THE LONG TERM FOR NOW A FLOOR OF 332 AN OUNCE APPEARS TO HAVE BEEN ESTABLISHED HE SAID FOR THIS UPSIDE MOVE TO BE VALIDATED WE NEED TO SEE IMMEDIATE FOLLOW THROUGH WEDNESDAY SAID BERNARD SAVAIKO A METALS ANALYST WITH PAINEWEBBER JUNE GOLD NEEDS TO DECISIVELY CLEAR 340 TO REINFORCE IDEAS OF A MAJOR UPSIDE BREAKOUT HE SAID YESTERDAY'S RALLY IN NEW YORK WAS USHERED IN BY HEAVY BUYING OF GOLD FUTURES CONTRACTS IN EUROPE BY COMMODITY FUNDS SOME FUNDS ALSO HAD MOVED TO COVER SHORT POSITIONS IN GOLD FUTURES OR WAGERS THAT THE GOLD PRICE WOULD DECLINE TECHNICALLY THE MARKET LOOKS MUCH BETTER THAN IT'S LOOKED FOR MANY MONTHS SO IT'S IMPORTANT THAT THERE BE SOME CARRY THROUGH SAID JEFFREY A NICHOLS A METALS CONSULTANT IN BURLINGTON VT THE PRECIOUS METAL SEEN AS A CLASSIC HEDGE AGAINST INFLATION AND TO A LESSER DEGREE AS A SAFE INVESTMENT HAVEN IN TIMES OF GEOPOLITICAL UNCERTAINTY APPEARS TO HAVE ESCAPED A NARROW TRADING RANGE OF 327 TO 331 AN OUNCE SEEN EARLIER THIS YEAR SUPPORTING THE FIRMER TONE ANALYSTS SAY ARE FOUR KEY FACTORS AN IMPROVING SUPPLYANDDEMAND PICTURE AS JEWELERS AND INDUSTRIAL USERS FROM THE FAR EAST CONTINUE TO SNAP UP BULLION FOR COMMERCIAL USE POLITICAL UNCERTAINTY SURROUNDING THE POWER STRUGGLE IN MOSCOW CONCERN THAT THE CLINTON JOBSTIMULUS PROGRAM COULD PROVE INFLATIONARY AND A RECENT UPTICK IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS AN INFLATION BAROMETER THE SINGLE MOST IMPORTANT FACTOR IN THE MARKET TODAY IS THAT INVESTORS ARE STEPPING UP THEIR GOLD PURCHASES AND THIS TENDENCY SEEMS SET TO CONTINUE FOR SOME TIME SAID JEFFREY M CHRISTIAN MANAGING DIRECTOR OF CPM GROUP A NEW YORKBASED PRECIOUSMETALS CONSULTING GROUP TRADERS SAID THE ABSENCE OF CENTRAL BANK SALES OF BULLION IS ALSO ACTING TO KEEP GOLD RELATIVELY BUOYANT AN ESTIMATED 17 MILLION OUNCES IN SALES BY CENTRAL BANKS LAST YEAR BLOATED THE AMOUNT OF BULLION ON THE MARKET AND HELPED DEPRESS PRICES EARLIER THIS YEAR TO NEAR SEVENYEAR LOWS AROUND 327 AN OUNCE THERE IS SOME SPECULATION HOWEVER THAT THE BANK OF ITALY MAY BE PREPARING TO SELL SOME OF ITS LARGE BULLION HOLDINGS IN THE NEXT FEW MONTHS TO HELP CORRECT A MOUNTING BUDGET DEFICIT AND TO GENERATE FOREIGN CURRENCY HOLDINGS TO DEFEND THE BELEAGUERED LIRA IN OTHER COMMODITY MARKETS YESTERDAY LUMBER LUMBER FUTURES PRICES CONTINUED TO SINK AFTER PEAKING AT 46530 PER THOUSAND BOARD FEET ON MARCH 15 THE PRICE OF THE LUMBER FUTURES CONTRACT FOR MAY DELIVERY HAS BEEN WORKING ITS WAY LOWER MANY TRADERS THINK LUMBER PRICES WHICH HAVE NEVER BEEN ABOVE 400 PER THOUSAND BOARD FEET BEFORE THIS YEAR ARE TOO HIGH DESPITE THE SURGE IN DEMAND FOR WOOD AND THE ENVIRONMENTAL RESTRICTIONS THAT ARE CONSTRAINING SUPPLY AT THE CHICAGO MERCANTILE EXCHANGE YESTERDAY LUMBER FOR MAY DELIVERY WAS DOWN 3 TO 409 PER THOUSAND BOARD FEET LIVESTOCK CATTLE FUTURES PRICES SLUMPED ON WEAK DEMAND FOR BEEF AND A GENERALLY BEARISH MOOD IN THE CATTLE MARKET ON MONDAY ONLY 41 BOXCARS OF BEEF WERE SOLD ON THE CASH MARKET DOWN FROM 86 A WEEK EARLIER THIS IS AN INDICATION OF SLUGGISH DEMAND FOR BEEF AMONG RETAILERS SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY WERE BIG SELLERS IN THE MARKET YESTERDAY ALSO HELPING TO DRIVE PRICES LOWER CATTLE PRICES TYPICALLY DECLINE DURING THE LAST TWO WEEKS OF APRIL BUT ANALYSTS SAID THE SEASONAL DECLINE APPEARS TO HAVE BEGUN EARLIER THIS YEAR THE PRICE OF CATTLE FOR APRIL DELIVERY FELL 085 CENT TO 8185 CENTS A POUND ORANGE JUICE ORANGE JUICE FUTURES CONTINUED TO FIRM SETTLING 020 CENT HIGHER AT 8625 CENTS A POUND IN THE ACTIVELY TRADED MAY CONTRACT ANALYSTS SAID MOST OF THE DAY'S TRADING IN JUICE FUTURES ON THE NEW YORK COTTON EXCHANGE WAS TECHNICALLY DRIVEN WITH COMMODITY FUNDS COVERING SHORT POSITIONS A SHORT POSITION IS A WAGER THAT THE UNDERLYING COMMODITY PRICE WILL FALL WE DON'T SEE A GREAT DEAL OF UPSIDE MOMENTUM FROM HERE CAUTIONED DAVID RINEHIMER AN ANALYST WITH SHEARSON LEHMAN BROTHERS IN NEW YORK ORANGE JUICE FUTURES PRICES HAVE BEEN FIRMING ON IMPROVING RETAIL DEMAND IN THE US AND ON TECHNICAL OR CHARTBASED FACTORS 9303310016 930331 ECOGEN TO HAVE SELLER IN ITALY LANGHORNE PA ECOGEN INC SAID ONE OF ITS ITALIAN PARTNERS INTRACHEM ITALIA RECEIVED APPROVAL TO SELL THREE OF ECOGEN'S BIOPESTICIDES IN ITALY ITS FIRST PRODUCT REGISTRATIONS IN WESTERN EUROPE THE THREE PRODUCTS ARE BASED ON BACILLUS THURINGIENSIS A NATURALLY OCCURRING BACTERIUM FOUND IN THE SOIL THAT PRODUCES AN INSECTICIDAL PROTEIN EFFECTIVE AGAINST CERTAIN INSECTS ECOGEN IS AN AGRICULTURAL BIOTECHNOLOGY COMPANY SPECIALIZING IN BIOLOGICAL PEST CONTROL 9303310015 930331 HEALTH SCHOOL CLINICS A BOON FOR MANY STUDENTS ARE ATTACKED FOR SEXCOUNSELING SERVICES BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL BESSEMER ALA FOR YEARS GROVER DUNN WATCHED STUDENT LIFE AT JESS LANIER HIGH SCHOOL DETERIORATE SIMPLE ILLNESSES LIKE COLDS PERSISTED DEPRESSED STUDENTS HAD NO ONE TO TALK TO AMONG THE GIRLS THE ANNUAL PREGNANCY RATE SOARED TO 10 WHAT KIND OF ENVIRONMENT DOES THAT BREED FOR LEARNING THE HIGHSCHOOL PRINCIPAL REMEMBERS THINKING SO MR DUNN DID WHAT A HANDFUL OF SCHOOL BOARDS AND OFFICIALS ACROSS THE COUNTRY ARE QUIETLY DOING LAST YEAR HE SET UP A HEALTH CLINIC IN THE HIGH SCHOOL AND TODAY MR DUNN SWEARS THAT THE PROGRAM IS ALREADY A SUCCESS ATTENDANCE IS UP STUDENTS ARE OPENING UP TO CLINIC WORKERS ABOUT THEIR PROBLEMS WITH DRUG ABUSE AND DYSFUNCTIONAL FAMILIES AND YOUNG GIRLS BARELY PAST CHILDHOOD THEMSELVES ARE NOW SEEKING COUNSELING ABOUT WHAT IT MEANS TO HAVE CHILDREN OF THEIR OWN IN A NATION THAT DAILY WRINGS ITS HANDS OVER THE CONDITION OF ITS HEALTHCARE SYSTEM SCHOOL CLINICS ARE EMERGING AS ONE OF THE FEW BRIGHT SPOTS IN THAT SYSTEM TO THEIR SUPPORTERS THE PROGRAMS PROVIDE AN OBVIOUS ANSWER TO THE LACK OF PRIMARY HEALTH CARE FOR POOR TEENAGERS MANY OF WHOM HAVE NO HEALTH INSURANCE AND HAVEN'T SEEN A DOCTOR IN YEARS THE CLINICS USUALLY STAFFED BY A NURSE PRACTITIONER OFFER CARE RIGHT WHERE TEENS SPEND THE BULK OF THEIR DAY AT SCHOOL NOW WITH AN ADMINISTRATION IN THE WHITE HOUSE THAT FAVORS SUCH CLINICS CANDIDATE CLINTON PUSHED THE IDEA DURING HIS CAMPAIGN THE NUMBER OF SCHOOL CLINICS IS EXPECTED TO MUSHROOM THAT GROWTH HOWEVER ISN'T LIKELY TO OCCUR WITHOUT OPPOSITION MANY OF THE 300 OR SO SCHOOL CLINICS NATIONWIDE HAVE OPERATED AT TIMES AMID BITTER RESISTANCE SOME CONSERVATIVE RELIGIOUS GROUPS AND PARENT ORGANIZATIONS CHARGE THAT THE CENTERS DO LITTLE MORE THAN DISPENSE CONDOMS AND ADVISE TEENS ON BIRTH CONTROL THEY SAY THEY WILL FIGHT ANY ATTEMPT TO PUSH SUCH CENTERS NATIONALLY WE WILL PROTEST OUTSIDE THESE CENTERS AND AT CITY HALL SAYS DOLORES AYLING FOUNDER OF THE NEW YORKBASED CONCERNED PARENTS FOR EDUCATIONAL ACCOUNTABILITY WHO SAYS HER ORGANIZATION HAS THE NAMES OF 48000 PARENTS WHO ARE OPPOSED TO THE CLINICS HEALTH CARE IS NOT THE SCHOOL'S AUTHORITY THE SCHOOL'S JOB IS TO PROVIDE EDUCATION SO FAR CLINICS ARE FORGING AHEAD DESPITE THE OPPOSITION SITUATED PRIMARILY IN LOWINCOME SCHOOL DISTRICTS MOST PROGRAMS APPEAR TO HAVE AN IMMEDIATE EFFECT ON STUDENTS' LIVES TEENAGERS SHOW UP WHO HAD NEVER BEFORE BEEN TO A DOCTOR REPORTS A RURAL WEST VIRGINIA CLINIC AT LINCOLN HIGH SCHOOL IN DENVER SCHOOL OFFICIALS OFFERED STUDENTS CAUGHT USING OR SELLING DRUGS TWO OPTIONS SUSPENSION OR ENROLLMENT IN A COUNSELING COURSE AT THE SCHOOL CLINIC MOST CHOSE COUNSELING AND THE SCHOOL'S SUSPENSION RATE DROPPED BY 80 WHILE MUCH OF THE DEBATE AROUND SCHOOL CLINICS HAS CENTERED ON BIRTHCONTROL COUNSELING PROPONENTS SAY THAT ACCOUNTS FOR A SMALL FRACTION OF THE SERVICES THE FACILITIES PROVIDE INDEED MANY CLINICS DON'T COUNSEL STUDENTS ABOUT BIRTHCONTROL AND REPRODUCTIVE MATTERS TYPICALLY STUDENTS SEEK TREATMENT AND ADVICE FOR A PATCHWORK OF REASONS FROM TESTING FOR DIABETES TO A HEADACHE I GET MENSTRUAL CRAMPS AND I DON'T HAVE TO GO HOME NOW SAYS ZACHYA GWIN 16 YEARS OLD AT ENSLEY HIGH SCHOOL IN BIRMINGHAM ALA JESS LANIER'S SCHOOL CLINIC IN BESSEMER WAS DELUGED WITH VISITS FROM STUDENTS FROM THE MOMENT IT OPENED ITS DOORS IN MARCH LAST YEAR SAYS PATSY RAY THE NURSE PRACTITIONER ON STAFF BUT SHE NOTICED SOMETHING STRANGE SOME STUDENTS WERE COMING IN WITH VAGUE PHYSICAL COMPLAINTS SHE SAYS WE'D EXAMINE THEM AND NOTHING WOULD SHOW UP BUT THEY KEPT COMING BACK MS RAY SUSPECTED THE STUDENTS WERE TESTING THE WATERS TO FIND OUT IF THEY COULD TRUST THE CLINIC SURE ENOUGH AFTER A COUPLE OF MONTHS THE FLOODGATES OPENED UP SHE SAYS WHAT SHE FOUND SHE SAYS WERE EMOTIONAL PROBLEMS AMONG THE STUDENTS THAT MADE HER OWN ANGSTRIDDEN ADOLESCENCE SEEM PLACID BY COMPARISON QUICKLY THE CLINIC ADDED A MENTALHEALTH WORKER TO THE STAFF NOW IT COUNSELS DRUG ABUSERS DRUG DEALERS INCEST VICTIMS DEPRESSED AND SUICIDAL TEENS CLINIC STAFFERS TALK TO TEENS ABOUT THEIR MOST INTIMATE PROBLEMS WE ASKED ONE GIRL ABOUT 14 WHAT SHE MOST WANTED IN THE WORLD MS RAY RECOUNTS SHE SAID SHE WANTED HER VIRGINITY BACK THE ASPECTS OF COUNSELING THAT DEAL WITH SEXUALITY HAVE BEEN CASTIGATED BY FOES OF ABORTION SEN EDWARD KENNEDY D MASS LAST YEAR WITHDREW A BILL THAT WOULD HAVE SET ASIDE 250 MILLION FOR AMONG OTHER THINGS SCHOOL CLINICS AFTER OPPONENTS CHARGED THE CLINICS ENCOURAGE ABORTION MR KENNEDY PLANS TO REINTRODUCE THE BILL THIS YEAR OPPONENTS ARGUE THAT CLINICS THAT ADVISE STUDENTS ABOUT CONTRACEPTION ARE LENDING THEIR STAMP OF APPROVAL TO A LIFESTYLE THAT PARENTS MIGHT NOT ADVOCATE MOREOVER SOME CRITICS ARGUE THAT SOME OF THE STRONGEST PROPONENTS OF CLINICS ARE THE VERY PEOPLE WHO STAFF THEM PEOPLE WHO ARE INTERESTED PRIMARILY IN CREATING AND KEEPING THEIR JOBS SAYS MS AYLING THE FOUNDER OF CONCERNED PARENTS WHOSE INTERESTS DO THEY HAVE AT HEART HERE FUNDING FOR CLINICS WILL BECOME A MAJOR ISSUE IF SUCH PROGRAMS ARE TO BE EXPANDED CURRENTLY CLINICS WHICH COST ABOUT 150000 A YEAR ON AVERAGE TO OPERATE RECEIVE MONEY THROUGH A HODGEPODGE OF PRIVATE GRANTS LOCAL SCHOOL BUDGETS MEDICAID DOLLARS AND LOCAL HEALTHDEPARTMENT FUNDING IN ALL LIKELIHOOD THAT SYSTEM COULDN'T SUPPORT A BIG INCREASE IN CLINICS PRIVATE FUNDING IS FINE FOR THE SHORT TERM SAYS JULIA GRAHAM LEAR DIRECTOR OF THE ROBERT WOOD JOHNSON FOUNDATION'S SCHOOL HEALTHCARE PROGRAM WHICH FUNDS SEVERAL CLINICS NATIONALLY FOR LONGTERM FUNDING THOUGH A SIGNIFICANT PORTION MUST COME FROM INSURANCE EITHER PRIVATE OR FEDERAL WHAT'S MORE CLINICS HAVEN'T YET BEEN ABLE TO PRODUCE THE CLINCHER THAT WOULD JUSTIFY THEIR EXISTENCE FOR MANY FALLING TEENPREGNANCY RATES WHILE SOME CLINICS HAVE REPORTED A DECLINE IN PREGNANCY RATES MANY HAVE NOT IT'S IMPOSSIBLE FOR A HEALTH CENTER TO IMMEDIATELY IMPACT SOMETHING THAT'S LIFESTYLEDRIVEN MAINTAINS CHERYL HOLDER DIRECTOR OF MIAMI'S NORTHWESTERN CLINIC WE CAN COUNSEL THEM AND HOPEFULLY IN A FEW YEARS WE'LL SEE A CHANGE HILLARY RODHAM CLINTON'S TASK FORCE ON HEALTHCARE REFORM MUST DECIDE WHETHER SCHOOL HEALTH CENTERS SHOULD BE INCLUDED AS PART OF A PROVIDER SYSTEM FOR HEALTHCARE DELIVERY IF THAT HAPPENS THESE CENTERS WOULD THEN BE ABLE TO RECEIVE INSURANCE PAYMENTS UNDER A NATIONAL HEALTHCARE SYSTEM IF NOT THEY WOULD HAVE TO COMPETE WITH OTHER PROVIDERS FOR A PIECE OF THE REIMBURSEMENT PIE SCHOOLCLINIC PROPONENTS ARE TAKING THEIR CASE TO THE CLINTON TASK FORCE IN DOING SO THEY ARE POINTING TO WHAT THEY SEE AS THEIR TRUMP CARD WHILE SCHOOL CLINICS CAN GIVE VACCINATIONS AND DISPENSE TREATMENT FOR ROUTINE AILMENTS THEY CAN MOST BENEFIT TEENS IN THE EMOTIONAL AREA BY BEING ON SITE TO OFFER COUNSELING FOR THE DAYTODAY ISSUES THAT TEENS CONFRONT SOMETHING A HOSPITAL OR DOCTOR'S OFFICE CAN'T DO ATTESTING TO THAT USEFULNESS PROPONENTS SAY IS THE CHOICES PROGRAM AT ENSLEY HIGH SCHOOL IN BIRMINGHAM ALA THE CLINIC HAS BEEN OPEN THERE FOR FIVE YEARS AND MORE THAN 500 STUDENTS OUT OF 1200 NOW PARTICIPATE IN SMALL THERAPEUTIC SESSIONS OFFERED BY CHOICES IN A RECENT SESSION SEVEN ENSLEY STUDENTS HAD A HEATED ARGUMENT ABOUT ABORTION I GO BY WHAT THE BIBLE SAYS THAT'S A LIFE YOU'RE KILLING SAYS ANTOINE JOHNSON 18 CLUTCHING A BIBLE HE IS SHOUTED DOWN BY OTHERS IN THE GROUP WHAT ABOUT RAPE ONE ASKS THIS IS GROUP THERAPY CLINIC STYLE A COUNSELOR SITS IN WITH THE STUDENTS TO HELP SPUR DISCUSSION ABOUT ISSUES OF THE DAY THE ARGUMENTS OFTEN GET PASSIONATE BUT THE STUDENTS WHO ATTEND VOLUNTARILY AFTER SCHOOL SWEAR BY THE SESSIONS EVEN ANTOINE I LIKE THE IDEA OF OPENING UP AND TALKING ABOUT THINGS SAYS THE 11TH GRADER WHO SAYS HE ONCE WAS A GANG LEADER IT'S NICE HAVING PEOPLE TO TALK TO EVEN WHEN THEY'RE WRONG 9303310014 930331 INTERNATIONAL BRIEF ASAHI BREWERIES LTD PRETAX PROFIT FELL 27 IN '92 AMID SLOWING SALES GROWTH ASAHI BREWERIES LTD SAID CONSOLIDATED PRETAX PROFIT FELL 27 TO 1912 BILLION YEN 1636 MILLION IN 1992 AS GROWTH IN DEMAND SLOWED MODERATELY AMID JAPAN'S ECONOMIC SLOWDOWN ASAHI PREDICTED THAT CONSOLIDATED PRETAX PROFIT FOR 1993 WOULD RISE 04 TO 192 BILLION YEN NET INCOME WOULD DECLINE 98 TO 350 BILLION YEN AND REVENUE WOULD CLIMB 48 TO 995 BILLION YEN GROUP SALES TOTALED 94911 BILLION YEN WITH SALES GROWTH SLOWING TO 39 FROM 41 IN 1991 NET INCOME FELL 20 TO 388 BILLION YEN THE COMPANY SAID UNFAVORABLE WEATHER AFTER AUGUST KEPT BEVERAGE SALES BY VOLUME AROUND THE PRECEDING YEAR'S LEVELS DESPITE AGGRESSIVE ADVERTISING 9303310013 930331 CAE INDUSTRIES UK CONTRACT TORONTO CAE INDUSTRIES LTD SAID ITS CAELINK CORP UNIT OF THE US RECEIVED A CONTRACT FROM THE UK MINISTRY OF DEFENCE TO DEVELOP AND INSTALL A BATTLE SIMULATOR CAE SAID ITS HIGHER FORMATION TRAINER SIMULATES A ROUNDTHECLOCK BATTLE IN REAL TIME FOR AS LONG AS SIX WEEKS TO TRAIN STAFF AT BRITISH ARMY HEADQUARTERS CAE A MAKER OF COMMERCIAL AND MILITARY SIMULATION DEVICES DIDN'T DISCLOSE THE VALUE OF THE CONTRACT THE SIMULATOR WILL BE INSTALLED WITHIN 12 MONTHS THE COMPANY SAID 9303310012 930331 WEICHERT REALTORS ACQUISITION MORRIS PLAINS NJ WEICHERT REALTORS A NORTHEASTERN INDEPENDENT REAL ESTATE COMPANY SAID IT ACQUIRED THE RESIDENTIAL REAL ESTATE DIVISION OF SHANNON & LUCHS CO WASHINGTON DC SHANNON & LUCHS OPERATES 51 OFFICES IN MARYLAND VIRGINIA AND WASHINGTON DC WITH 1600 SALES ASSOCIATES AND 1992 SALES VOLUME IN EXCESS OF 2 BILLION WEICHERT WITH 6400 SALES ASSOCIATES HAD 1992 VOLUME OF 84 BILLION THE PURCHASE WILL BOOST ITS NUMBER OF OFFICES TO MORE THAN 225 IT ALSO OPERATES IN CONNECTICUT NEW YORK NEW JERSEY PENNSYLVANIA AND DELAWARE 9303310011 930331 INSIDE TRACK SIX JACKPOT ENTERPRISES INSIDERS HIT ONE WITH STOCK SALE BEFORE THE PRICE FELL BY ALEXANDRA PEERS AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CASHING IN SOME OF THEIR SHARES WAS A GOOD GAMBLE BY EXECUTIVES AT JACKPOT ENTERPRISES INC SIX INSIDERS AT THE LAS VEGASBASED SLOTMACHINE COMPANY SOLD 460875 OF ITS SHARES FROM NOVEMBER THROUGH FEBRUARY INSIDER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THE SALES FETCHED PRICES AS HIGH AS 24 A SHARE BUT SINCE THEN THE STOCK'S PRICE HAS SLIPPED CLOSING YESTERDAY AT 17375 DOWN 1125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE JACKPOT WAS ONE OF THE BIG BOARD'S BEST PERFORMERS IN 1992 RISING 158 IN THE YEAR THE COMPANY HAS AN UNUSUAL NICHE IN THE GAMBLING BUSINESS MANUFACTURING VIDEO POKER AND SLOT MACHINES AND OPERATING THEM IN MOSTLY UNTRADITIONAL LOCATIONS INCLUDING SUPERMARKETS AND CONVENIENCE STORES IT ALSO OWNS OR PARTLY OWNS GAMBLING OPERATIONS IN NEVADA AND DEADWOOD SC JACKPOT HIT A HIGH OF 24375 IN LATE JANUARY DURING THE DAYS AFTER THE COMPANY REPORTED QUARTERLY EARNINGS ABOVE INDUSTRY EXPECTATIONS DUE MOSTLY TO A 65 JUMP IN CASH FLOW FROM ITS GAMBLING OPERATIONS BUT SINCE THEN THE STOCK HAS TRENDED LOWER ON NEWS OF THE SETTLEMENT OF A CLASSACTION LAWSUIT AGAINST JACKPOT AND ON A GENERAL WEAKENING OF STOCKS IN THE CASINO SECTOR OVER CONCERN THAT PRESIDENT CLINTON MAY CALL FOR A FEDERAL GAMBLING TAX THE CLASSACTION SUIT ALLEGED THE COMPANY MADE FALSE FINANCIAL STATEMENTS JACKPOT AGREED TO PAY 36 MILLION MOST OF WHICH WILL BE PAID BY ITS INSURER AND DIDN'T ADMIT ANY WRONGDOING THE INSIDERS WHO SOLD INCLUDING JACKPOT'S CHAIRMAN NEIL ROSENSTEIN TRIMMED THEIR OWN HOLDINGS AT SHARE PRICES RANGING FROM 16375 TO 24 SEC FILINGS SHOW OR AN AVERAGE PRICE OF 2077 THE BIGGEST SELLER WAS MR ROSENSTEIN WHO SOLD 306325 SHARES 66 OF HIS STAKE SINCE NOV 2 ACCORDING TO SEC FILINGS BUT HE SAID THAT ROUGHLY TWOTHIRDS OF THOSE SHARES WERE SOLD BY A COMPANY AT WHICH HE ALSO SERVES AS CHAIRMAN SPORTTECH INC OF FORT LAUDERDALE FLA I HAVE TO REPORT THOSE SALES BECAUSE I'M A RELATED PARTY MR ROSENSTEIN SAID BUT I AM REQUIRED TO ABSTAIN FROM ANY ADVICE TO SPORTTECH ON ITS JACKPOT HOLDINGS HE SAID THE INSIDER SALES WERE MADE CHIEFLY FOR TAX PURPOSES FOLLOWING EXERCISE OF OPTIONS OR IN ONE CASE IN PREPARATION FOR ONE EXECUTIVE'S RETIREMENT AND WEREN'T A BEARISH SIGNAL REVENUES FOR THE QUARTER WILL BE THE HIGHEST EVER MR ROSENSTEIN PREDICTED OUR BALANCE SHEET IS IN PRISTINE SHAPE THE COMPANY HAS SUBSTANTIALLY CUT ITS LONGTERM DEBT TO 3 MILLION THROUGH A RECENT CALL OF ITS DEBENTURES HE ADDED CITIFIED CEO JOHN REED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEW YORK BANKING GIANT CITICORP EXERCISED OPTIONS TO PURCHASE 36000 SHARES OF THE COMPANY ON FEB 24 AND IMMEDIATELY RESOLD THE STOCK ACCORDING TO FILINGS WITH THE SEC HIS SHARES FETCHED 2563 EACH FOR AN INDICATED TOTAL PROFIT OF 159120 ACCORDING TO THE FILINGS MR REED BELIEVED TO BE CITICORP'S SECONDLARGEST INDIVIDUAL SHAREHOLDER DECLINED TO COMMENT ABOUT THE 922680 SALE A CITICORP SPOKESMAN SAID THE OPTIONS WERE DUE TO EXPIRE TODAY AND THE CHOICE WAS TO EXERCISE THEM OR TO LOSE THEM THE OPTIONS HAD BEEN UNDER WATER OR BELOW THE STRIKE PRICE AT WHICH THEY WOULD HAVE BEEN PROFITABLE FOR SOME TIME BUT CITICORP STOCK HAS BEEN RISING FAIRLY STEADILY FOR 15 MONTHS IN JANUARY 1992 THE STOCK WAS TRADING AROUND 16 AND CLOSED YESTERDAY IN BIG BOARD COMPOSITE TRADING AT 2925 UNCHANGED MR REED'S SALARY DISCLOSED IN THE MOST RECENT PROSPECTUS IS 1150000 A YEAR HE CONTINUES TO HOLD 396412 SHARES AND OPTIONS TO BUY AN ADDITIONAL 950000 SHARES OF WHICH SLIGHTLY MORE THAN 400000 ARE EXERCISABLE ACCORDING TO THE COMPANY 9303310010 930331 DAIMLER'S SEC PACT TO LIST STOCK IN US MAY SPUR OTHER FOREIGN FIRMS TO FOLLOW BY ANITA RAGHAVAN AND CHRISTI HARLAN STAFF REPORTERS OF THE WALL STREET JOURNAL DAIMLERBENZ AG'S MOVE TO BE LISTED ON THE NEW YORK STOCK EXCHANGE IS LIKELY TO SPUR OTHER FOREIGN COMPANIES WHICH HAVE BEEN DISCOURAGED BY RIGOROUS US ACCOUNTING STANDARDS TO OFFER STOCK ON US EXCHANGES WE ARE PLAYING THE ICEBREAKER ROLE SAID GERHARD LIENER CHIEF FINANCIAL OFFICER OF DAIMLERBENZ WHO ALONG WITH SECURITIES AND EXCHANGE COMMISSION CHAIRMAN RICHARD BREEDEN WAS IN NEW YORK YESTERDAY TO UNVEIL THE LUXURY CAR MAKER'S AGREEMENT WITH THE SEC MR LIENER SAID IT WAS PROBABLE THAT DEUTSCHE BANK AG THE LARGEST SHAREHOLDER OF DAIMLERBENZ WILL BECOME ONE OF THE NEXT COMPANIES TO LIST ITS STOCK ON THE BIG BOARD AND OTHER PEOPLE FAMILIAR WITH THE SITUATION SAID THAT NESTLE SA THE SWISS FOOD COMPANY IS ANOTHER CANDIDATE LIKELY TO SIGN ON TO THE BIG BOARD A SPOKESWOMAN FOR NESTLE DECLINED TO COMMENT AND A SPOKESMAN FOR DEUTSCHE BANK IN GERMANY SAID THE BANK HAS APPROACHED THE SEC IN THE PAST ABOUT LISTING STOCK ON THE BIG BOARD BUT ISN'T IN TALKS WITH THE AGENCY RIGHT NOW ADDING MAJOR GERMAN AND OTHER NONUS STOCK LISTINGS HAS BEEN A TOP PRIORITY OF THE BIG BOARD IN RECENT YEARS THE EXCHANGE'S CHAIRMAN WILLIAM H DONALDSON HAS BEEN AT LOGGERHEADS WITH MR BREEDEN OVER BENDING US ACCOUNTING RULES TO PAVE THE WAY FOR ADDITIONAL FOREIGN STOCK LISTINGS AT A NEWS CONFERENCE AT THE METROPOLITAN CLUB YESTERDAY MR DONALDSON SAID THE AGREEMENT SHOULD ACCELERATE THE PROCESS OF MAKING THE STRENGTH OF THE WORLD'S LARGEST EQUITIES MARKET AVAILABLE TO MANY MORE PREMIER INTERNATIONAL COMPANIES NOW MR BREEDEN SAID NO ONE CAN ARGUE THAT IT CAN'T BE DONE HE ADDED IN THE PAST 3 1/2 YEARS MORE THAN 200 COMPANIES ENTERED THE US MARKETS FOR THE FIRST TIME BUT UNTIL TODAY ONE COUNTRY GERMANY WAS CONSPICUOUSLY ABSENT UNDER AN AGREEMENT WORKED OUT BETWEEN THE SEC AND DAIMLERBENZ THE GERMAN CAR MAKER WILL HAVE THE CHOICE OF EITHER OFFERING ONE SET OF FINANCIAL DATA TO US INVESTORS THAT MEETS SEC REGULATIONS AND ANOTHER SET TO GERMAN INVESTORS OR LAYING OUT ONE PACKAGE OF FINANCIAL DATA ACCEPTABLE TO BOTH GROUPS GERMAN COMPANIES ARE NOTORIOUS FOR SQUIRRELING AWAY CASH THAT NEVER APPEARS ON THEIR BALANCE SHEETS MUCH TO THE ANNOYANCE OF FOREIGN INVESTORS ONE CONCESSION THE SEC MADE TO DAIMLERBENZ IS THAT IT WILL INITIALLY ALLOW THE CAR MAKER TO OFFER ITS PAST FINANCIAL DATA IN A WAY THAT DOESN'T CORRESPOND TO US ACCOUNTING PRINCIPLES THE SEC ALSO MADE CONCESSIONS TO DAIMLERBENZ REGARDING THE TREATMENT OF GOODWILL BUT MR BREEDEN ADAMANTLY MAINTAINED YESTERDAY THAT THE SEC GAVE UP NOTHING IN ITS NEGOTIATIONS WITH THE GERMAN COMPANY HE EMPHASIZED THAT THERE HASN'T BEEN ANY CHANGE IN US POLICY CONCERNING DISCLOSURE BY FOREIGN COMPANIES HE CALLED THE AGREEMENT A COMPLETE REJECTION OF THE APPROACH SUGGESTED BY THE NEW YORK STOCK EXCHANGE AND OTHERS WHO HAD URGED THE SEC TO LOOSEN ACCOUNTING AND DISCLOSURE STANDARDS FOR FOREIGN COMPANIES DAIMLERBENZ SAID LAST WEEK IT WILL DECLARE FOUR BILLION MARKS 245 BILLION IN HIDDEN RESERVES AS EXTRAORDINARY PROFIT ON ITS 1992 BALANCE SHEET AS PART OF ITS EFFORT TO BECOME THE FIRST GERMAN COMPANY TO LIST ITS SHARES ON THE BIG BOARD THE THRUST OF THE COMPROMISE IS THAT WE CAME VERY CLOSE TO THE FINANCIAL ACCOUNTING THAT THE US INVESTOR IS USED TO SAID MR LIENER LISTING SEEN BEFORE FALL MR LIENER SAID HE EXPECTED THAT DAIMLERBENZ'S STOCK WILL BE LISTED ON THE BIG BOARD BEFORE THE WORLD SERIES IN BASEBALL BEGINS THIS FALL MR LIENER SAID DAIMLER INTENDS TO SELL EXISTING STOCK TO US INVESTORS LATER THIS YEAR AS THE FIRST STEP TOWARD LISTING ON THE BIG BOARD DAIMLERBENZ ALSO IS PLANNING A GLOBAL RIGHTS OFFERING OF ABOUT 2 BILLION SOMETIME IN THE SECOND HALF OF 1994 MR LIENER SAID THE COMPANY'S GOAL IS TO HAVE US INVESTORS HOLD ABOUT 10 OF DAIMLERBENZ'S STOCK UP FROM ABOUT 3 TO 4 CURRENTLY THE AGREEMENT BETWEEN DAIMLERBENZ AND THE SEC CAPS YEARS OF INTERMITTENT TALKS OVER WAYS TO OVERCOME US ACCOUNTING RULES AND LIST STOCK IN THE US MR LIENER SAID THAT HE AND OFFICIALS FROM FIVE OTHER GERMAN COMPANIES HOECHST AG BAYER AG VOLKSWAGEN AG SIEMENS AG AND BASF AG MET WITH MR BREEDEN THREE YEARS AGO TO BROACH THE SUBJECT OF LISTING STOCK IN THE US BUT WE DIDN'T ACHIEVE ANYTHING BECAUSE WE WERE TOO RIGID HE SAID MR LIENER DECIDED TO TRY AGAIN LAST DECEMBER QUITE TO MY SURPRISE I FOUND THAT WHEN I HAD CONTACTED MR BREEDEN HE HAD DONE SOME RETHINKING AND WAS MORE FLEXIBLE WE WERE BOTH PREPARED TO MOVE IN THE DIRECTION OF THE OTHER PARTY SO IT DIDN'T TAKE VERY LONG 9303310009 930331 JUSTICES DEAL NEW YORK COSTLY DEFEAT IN SUIT BY DELAWARE ON UNCLAIMED ASSETS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A COSTLY DEFEAT FOR NEW YORK STATE THE SUPREME COURT SAID THAT DELAWARE HAS THE RIGHT TO COLLECT HUNDREDS OF MILLIONS OF DOLLARS IN UNCLAIMED DIVIDENDS AND INTEREST HELD BY NEW YORK BROKERAGE FIRMS BUT WHILE NEW YORK ULTIMATELY MAY HAVE TO TURN OVER MORE THAN 300 MILLION TO DELAWARE YESTERDAY'S 63 RULING COULD HAVE BEEN MUCH WORSE FOR NEW YORK THE SUPREME COURT REJECTED A PROPOSED RESOLUTION OF THE UNCLAIMEDASSETS DISPUTE THAT NEW YORK OFFICIALS SAID COULD HAVE COST THE STATE AS MUCH AS 900 MILLION THE CASE INVOLVED DIVIDENDS AND INTEREST COLLECTED BY NEW YORK SINCE 1972 FROM BROKERAGE AND BANK ACCOUNTS WHOSE OWNERS COULDN'T BE LOCATED NEW YORK TOOK THE MONEY ON THE THEORY THAT IT COULD ASSUME OWNERSHIP OF PROPERTY ABANDONED WITHIN THE STATE YESTERDAY'S HIGH COURT DECISION PROBABLY WON'T BE THE FINAL WORD ON THE MATTER LAWYERS FOR THE OTHER 48 STATES SAID THEY ARE ALREADY PREPARING LEGISLATION TO BE INTRODUCED IN CONGRESS THAT WOULD SPREAD THE UNCLAIMED MONEY MORE BROADLY AMONG THE STATES JUSTICE CLARENCE THOMAS SUGGESTED THIS ROUTE IN HIS OPINION FOR THE MAJORITY IF THE STATES ARE DISSATISFIED WITH THE OUTCOME OF A PARTICULAR CASE HE WROTE THEY MAY AIR THEIR GRIEVANCES BEFORE CONGRESS THE HIGHSTAKES CASE AROSE FROM LOGISTICAL PROBLEMS IN THE BROKERAGE BUSINESS IN A TINY FRACTION OF TRANSACTIONS BROKERS RECEIVE INCOME RELATED TO SECURITIES WHOSE OWNERS CAN'T BE LOCATED THIS MAY OCCUR FOR INSTANCE IF STOCK HAS BEEN SOLD BUT THE ISSUER MISTAKENLY STILL SENDS A DIVIDEND TO THE BROKER IN TOTAL THESE ERRORS ADD UP TO TENS OF MILLIONS OF DOLLARS A YEAR DELAWARE SUED NEW YORK IN 1988 DEMANDING A SHARE OF THE UNCLAIMED DISTRIBUTIONS DELAWARE ARGUED THAT THE STATE IN WHICH BROKERAGE FIRMS ARE INCORPORATED OUGHT TO BE THE ONE THAT TAKES THE ABANDONED MONEY MANY MAJOR SECURITIES FIRMS LIKE MANY BIG COMPANIES GENERALLY ARE INCORPORATED IN DELAWARE BECAUSE OF THE TINY STATE'S FLEXIBLE CORPORATE LAWS AND HIGHQUALITY COURT SYSTEM THE SUPREME COURT AGREED TO HEAR DELAWARE'S SUIT EVEN THOUGH THERE HAD BEEN NO LOWERCOURT PROCEEDINGS AS THE JUSTICES MAY DO IN DISPUTES AMONG STATES SUBSEQUENTLY EVERY OTHER STATE GOT INVOLVED ASSERTING THAT THE UNCLAIMED MONEY SHOULD BE SHARED MORE BROADLY THE HIGH COURT AS IT TYPICALLY DOES IN SUCH CASES APPOINTED A NEUTRAL EXPERT TO RECOMMEND A SOLUTION THE EXPERT KNOWN AS A SPECIAL MASTER RECOMMENDED IN JANUARY 1992 THAT RIGHTS TO COLLECT UNCLAIMED DIVIDENDS AND INTEREST BE BASED ON THE LOCATION OF THE ISSUER OF THE UNDERLYING SECURITIES UNDER THIS APPROACH A DIVIDEND FROM CORPORATE STOCK WOULD GO TO THE STATE IN WHICH THE COMPANY HAS ITS HEADQUARTERS THIS SOLUTION WOULD HAVE BEEN DISASTROUS FOR NEW YORK WHICH WOULD HAVE HAD TO SHARE ALMOST ALL OF THE MONEY WITH MOST IF NOT ALL OTHER STATES BUT IN ITS RULING YESTERDAY THE SUPREME COURT REJECTED THE SPECIAL MASTER'S RECOMMENDATION THE HIGH COURT SAID THAT UNDER ITS PRECEDENTS ON ABANDONEDPROPERTY LAW THE STATE IN WHICH THE HOLDER OF THE UNCLAIMED ASSETS IS INCORPORATED IS THE ONE THAT MAY ASSUME OWNERSHIP DETERMINING THE STATE OF INCORPORATION IS RELATIVELY EASY SO THIS APPROACH IS THE MOST EFFICIENT AND PREDICTABLE JUSTICE THOMAS SAID IN HIS OPINION FOR THE MAJORITY JOINING THE MAJORITY WERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES SANDRA DAY O'CONNOR ANTONIN SCALIA ANTHONY KENNEDY AND DAVID SOUTER JUSTICE BYRON WHITE JOINED BY JUSTICE HARRY BLACKMUN AND JOHN PAUL STEVENS DISSENTED JERRY BOONE NEW YORK'S CHIEF LAWYER ON THE CASE SAID THAT IN THE PAST 20 YEARS THE STATE HAS COLLECTED ROUGHLY 326 MILLION IN UNCLAIMED DISTRIBUTIONS FROM BROKERAGE FIRMS INCORPORATED IN DELAWARE HE ESTIMATED THAT NEW YORK HAS COLLECTED 54 MILLION FROM BROKERS INCORPORATED IN NEW YORK MONEY THE STATE WOULD BE ABLE TO KEEP UNDER THE SUPREME COURT'S DECISION UNDER THE RULING THE STATE ALSO WOULD BE ABLE TO KEEP MORE THAN 500 MILLION THAT IT HAS COLLECTED FROM BANKS AND OTHER FINANCIAL INSTITUTIONS INCORPORATED IN NEW YORK MR BOONE SAID 9303310008 930331 PEPPERAND SALT SIX DOWN AND THREE ACROSS A SUCCESSFUL POLITICIAN IS A MODEL OF ADAPTABILITY HE CAN TALK OUT OF BOTH SIDES OF HIS MOUTH AND OFF THE TOP OF HIS HEAD AND KEEP HIS EAR TO THE GROUND 9303310007 930331 BUSINESS BRIEF DIAL CORP COMPANY SELLS PART OF UNIT'S LOAN PORTFOLIO TO CIT GROUP DIAL CORP PHOENIX SAID IT SOLD A PORTION OF ITS MCI ACCEPTANCE CORP SUBSIDIARY'S LOAN PORTFOLIO TO A CIT GROUP AFFILIATE FOR ABOUT 54 MILLION PROCEEDS FROM THE SALE WILL BE USED TO PAY DOWN DEBT DIAL SAID AT DEC 31 DIAL'S DEBT WAS ABOUT 7285 MILLION CIT GROUP IS A LENDING CONCERN BASED IN NEW YORK THE TRANSACTION IS ANOTHER IMPORTANT STEP IN PREPARING FOR THE DISPOSITION OF BUSMANUFACTURING OPERATIONS SAID JOHN W TEETS CHAIRMAN AND CHIEF EXECUTIVE DIAL EXPECTS TO ANNOUNCE DETAILS OF ITS DIVESTITURE PLAN BY THE END OF JUNE A SPOKESMAN SAID THE COMPANY HAS BEEN PARING OPERATIONS TO FOCUS ON ITS CONSUMER SERVICES AND PRODUCTS WHICH INCLUDE DIAL SOAP BRECK SHAMPOO AND BRILLO SOAP PADS MCI ACCEPTANCE FINANCES PURCHASES OF BUSES MADE BY ANOTHER DIAL SUBSIDIARY MOTOR COACH INDUSTRIES INC IN ADDITION TO THE TRANSACTION DIAL SAID IT EXPECTS CIT GROUP IN THE FUTURE TO ACT AS A DIRECT LENDER TO MOTOR COACH CUSTOMERS THOSE LOANS WILL REDUCE MCI ACCEPTANCE'S CAPITAL REQUIREMENTS DIAL SAID 9303310006 930331 OTC FOCUS INDEX RISES 081 AMID GOOD NEWS ABOUT SOME TECHNOLOGY MEDICAL FIRMS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET RALLIED SHARPLY PROPELLED BY GOOD NEWS ABOUT SEVERAL TECHNOLOGY AND MEDICALRELATED COMPANIES MUCH OF THE MARKET'S SURGE CAME FROM THE LARGER NASDAQ STOCKS THE NASDAQ 100 INDEX A MEASURE OF THE BIGGEST NASDAQ ISSUES LEAPED 1263 OR 18 TO 71544 SOME OF THE TECHNOLOGY STOCKS HAVE BEEN LAGGING AND NOW THEY ARE PLAYING A LITTLE CATCHUP SAID JOSEPH LOFTUS A SENIOR OTC TRADER AT SHEARSON LEHMAN BROTHERS THERE WERE ALSO SOME GAINS IN THE BIOTECH AND HEALTH CARE STOCKS WHICH HAVE BEEN TAKING A BEATING FOR A WHILE THE NASDAQ COMPOSITE INDEX CLIMBED 549 OR 081 TO 68625 ADVANCING ISSUES OUTNUMBERED DECLINERS 1398 TO 1226 ON TOTAL VOLUME OF 2157 MILLION SHARES UP FROM MONDAY'S 1945 MILLION DESPITE YESTERDAY'S GAINS THE MARKET WILL CONTINUE TO TRADE WITHIN A NARROW RANGE TRADERS SAID THERE ISN'T MUCH DIRECTION RIGHT NOW IT DEPENDS ON THE MOOD OF THE DAY SAID GEORGE MOORIN VICE PRESIDENT OF OTC TRADING AT JJB HILLIARD WL LYONS IN LOUISVILLE KY THE FACT THAT THE MARKET IS UP IS KIND OF DECEPTIVE IN GENERAL THE MARKET KEEPS MOVING TO LOWER LEVELS OF SUPPORT SUN MICROSYSTEMS JUMPED 1 3/8 TO 29 5/8 YESTERDAY THE WALL STREET JOURNAL REPORTED THAT SUN SAID IT WILL DEVELOP A VERSION OF ITS OPERATING SYSTEM SOFTWARE FOR A COMPUTER BEING JOINTLY DEVELOPED BY APPLE COMPUTER INTERNATIONAL BUSINESS MACHINES AND MOTOROLA THE MOUNTAIN VIEW CALIF COMPUTER MAKER ALSO SAID IT WILL BEGIN SHIPPING IN MAY A VERSION OF ITS SOLARIS OPERATING SYSTEM SOFTWARE THAT WILL WORK WITH PERSONAL COMPUTERS USING MICROPROCESSORS MADE BY INTEL INTEL ROSE 1 1/4 TO 115 1/2 AND APPLE JUMPED 1 1/4 TO 52 1/4 MICROSOFT LEAPED 4 TO 91 GOLDMAN SACHS ANALYST RICK SHERLUND REEMPHASIZED HIS BUY RECOMMENDATION IN ANTICIPATION OF A REACCELERATION IN THE COMPANY'S GROWTH AFTER THE JUNE QUARTER MR SHERLUND TOLD CLIENTS IN A RESEARCH NOTE THAT REVENUE AND EARNINGS GROWTH RATES SHOULD TROUGH DURING THE FISCAL FOURTH QUARTER ENDING IN JUNE HE ESTIMATES REVENUE GROWTH OF 25 TO 30 AND EARNINGS GROWTH OF 20 TO 25 IN THE QUARTER WE BELIEVE MOMENTUM COULD REACCELERATE BACK TO THE 40 TO 50 GROWTH RATE LEVEL BY MIDCALENDAR 1994 HE SAID CHIRON GAINED 2 1/4 TO 50 YESTERDAY THIS PUBLICATION REPORTED THAT THE NATIONAL INSTITUTES OF HEALTH SAID IT LAUNCHED THE FIRST TRIAL OF EXPERIMENTAL HIV VACCINES IN CHILDREN WHO ARE INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS THAT CAUSES AIDS THE VACCINES ARE MADE BY CHIRON'S BIOCINE JOINT VENTURE WITH CIBAGEIGY AND BY GENENTECH AND MICROGENESYS COMMONWEALTH BANCSHARES SURGED 9 1/2 TO 42 3/4 THE WILLIAMSPORT PABASED COMMONWEALTH AND MERIDIAN BANCORP OF READING PA SAID THEY SIGNED A DEFINITIVE AGREEMENT FOR THE MERGER OF THE COMPANIES AND THEIR PRINCIPAL SUBSIDIARY BANKS UNDER THE AGREEMENT MERIDIAN WILL EXCHANGE 1415 COMMON SHARES FOR EACH COMMONWEALTH SHARE OUTSTANDING THE COMPANIES SAID THE TRANSACTION WILL RESULT IN THE ISSUANCE OF 109 MILLION MERIDIAN COMMON SHARES MERIDIAN'S STOCK SLIPPED 1/2 TO 32 1/4 THE TRANSACTION VALUED AT 357 MILLION IS EXPECTED TO CLOSE IN LATE 1993 THE COMPANIES SAID MASCO INDUSTRIES ROSE 5/8 TO 16 5/8 RICHARD A MANOOGIAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY BELIEVES ITS FIRSTQUARTER EARNINGS WILL DOUBLE TO 20 CENTS A SHARE HE SAID 1993 EARNINGS COULD MEET OR SURPASS 1988'S RECORD EARNINGS OF 90 CENTS A SHAR IF THE ECONOMIC RECOVERY CONTINUES IN 1992 MASCO REPORTED EARNINGS OF 48 CENTS A SHARE THE TAYLOR MICH COMPANY MANUFACTURES INDUSTRIAL PRODUCTS INCLUDING PARTS FOR TRANSPORTATIONRELATED INDUSTRIES ADAC LABORATORIES ADVANCED 3/4 TO 13 3/4 THE MILPITAS CALIF COMPANY SAID IT EXPECTS EARNINGS OF 27 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED SUNDAY UP FROM 20 CENTS A SHARE A YEAR EARLIER AS ADJUSTED FOR A RECENT 1FOR3 REVERSE STOCK SPLIT ADAC DESIGNS ELECTRONIC MEDIA IMAGING AND INFORMATION SYSTEMS 9303310005 930331 FOR PEOPLE WITHOUT LIVESTOCK GROWING CHILDREN SHOULD DO FINE BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL UNLIKE THE LEGIONS OF RESEARCHERS TRYING TO FIND A BETTER WAY TO GET TINY MICROBES BACTERIA AND SUCH TO EAT PLASTIC WASTES JAYLIN JANE THINKS BIG WHO NEEDS BUGS ASKS THE IOWA STATE UNIVERSITY CHEMIST WHEN A PLASTIC SHE IS DEVELOPING CAN BE GROUND UP AND FED TO HEFTY FARM ANIMALS THE CORPORATE WORLD ALREADY HAS TAKEN NOTICE MS JANE SAYS SOME OF THIS MATERIAL IS CLOSE TO BEING READY FOR USE IN TABLEWARE IN THE FOOD INDUSTRY SHE ADDS CRYPTICALLY A WELLKNOWN FASTFOOD RESTAURANT WAS INTERESTED IN OUR PROGRESS ON THIS MATERIAL MAKING PLASTIC EDIBLE IS ONE WAY TO KEEP IT OUT OF LANDFILLS AND INCINERATORS THE TRICK SAYS MS JANE A TAIWAN NATIVE IS TO MAKE IT OUT OF STARCH AND PROTEINS FROM SOYBEAN AND CORN THERE'S PLENTY OF BOTH NOT TO MENTION CATTLE AND PIGS IN THE FIELDS AROUND AMES IOWA THE SITE OF HER LABORATORY AT IOWA STATE'S CENTER FOR CROP UTILIZATION RESEARCH MOREOVER THE NUTRITIONAL PROPERTIES OF SOME OF HER PLASTICS ARE JUST WHAT THE VETERINARIAN ORDERED SHE SAYS OTHERS HAVE TRIED MAKING DISPOSABLE PLASTICS FROM STARCHES BUT MOST OF THE MATERIALS COULDN'T TAKE A LICKING THEY DISSOLVED TOO QUICKLY IN WATER MELTING IN THE MOUTH MS JANE'S PLASTICS HAVE EXTRA PROTEINS THAT ENHANCE THEIR WATERRESISTANCE BUT STILL ALLOW THEM TO DISSOLVE AFTER SEVERAL WEEKS JUST HOW LONG AND UNDER WHAT CONDITIONS IS BEING TESTED BY RESEARCHERS AT THE UNIVERSITY OF HAWAII SHE SAYS FARM ANIMALS AREN'T THE ONLY ONES WHO MAY SOON BE SNIFFING AROUND THE BIOEDIBLE PLASTICS THE US NAVY HAS ALSO EXPRESSED INTEREST UNDER AN INTERNATIONAL AGREEMENT NAVIES ARE SUPPOSED TO STOP DUMPING PETROLEUMBASED PLASTICS IN THE WORLD'S OCEANS BY YEAR END THAT'S THE KIND OF MATERIAL THE NAVY IS LOOKING FOR SAYS JEANNE ROSS A PHYSICAL SCIENTIST AT THE US ARMY NATICK RESEARCH DEVELOPMENT AND ENGINEERING CENTER NATICK MASS WHICH DOES RESEARCH FOR ALL THE ARMED SERVICES WE NEED A MATERIAL THAT DEGRADES BUT NOT BEFORE IT SERVES ITS PURPOSE THE PLASTIC MAY BE FIT FOR ELSIE WILBUR AND FRIENDS BUT PEOPLE WON'T BE ABLE TO HAVE THEIR FORKS AND EAT THEM TOO ANYTIME SOON MAKING THE MATERIAL WATERRESISTANT ALSO MAKES IT AS HARD AS WELL PLASTIC NUTRITIONALLY IT'S OK MS JANE SAYS BUT WITHOUT GRINDING THE STUFF UP YOU WOULD NEED A GOOD DENTAL PLAN IF YOU WANTED TO EAT IT 9303310004 930331 MARKETING BRIEF NOTED CAPITAL CITIES CAPITAL CITIES/ABC INC SAID ITS CAPITAL CITIES CAPITAL INC UNIT INVESTED 475 MILLION IN CLOSELY HELD YES ENTERTAINMENT CORP IN EXCHANGE FOR ADVERTISING CAPITAL CITIES CAPITAL WHICH FINANCES CONSUMER PRODUCT AND SERVICE COMPANIES IN RETURN FOR ADVERTISING ON ABC NETWORKS AND IN OTHER ABC MEDIA HOLDINGS WAS FORMED LESS THAN TWO WEEKS AGO THE STAKE IN YES BASED IN PLEASANTON CALIF IS THE UNIT'S FIRST INVESTMENT THE ABC NETWORK IS A UNIT OF CAPITAL CITIES/ABC A BROADCASTING AND PUBLISHING CONCERN MAGAZINE SALE A NEW YORK INVESTOR GROUP SIGNED A LETTER OF INTENT TO BUY LIBERATION PUBLICATIONS INC PARENT OF THE ADVOCATE THE NATION'S LARGEST LESBIAN AND GAY PUBLICATION TERMS WEREN'T DISCLOSED THE INVESTOR GROUP IS HEADED BY SAM WATTERS AN ENTREPRENEUR WHO HAS BEEN INVOLVED IN ADVERTISING MANUFACTURING DISTRIBUTION RETAILING AND PRINTING BUSINESSES MR WATTERS WILL SERVE AS CHIEF EXECUTIVE OFFICER OF THE CLOSELY HELD LOS ANGELESBASED COMPANY LIBERATION PUBLICATIONS WHICH OWNS SEVERAL OTHER GAYTHEMED MAGAZINES AND OPERATES A DIRECTMARKETING BUSINESS IS OWNED BY NILES MERTON WHO BOUGHT THE COMPANY IN 1985 9303310003 930331 BUSINESS BRIEF FARM & HOME FINANCIAL CORP THRIFT TO PAY INSURER TO END DISPUTE OVER HOUSING SITE FARM & HOME FINANCIAL CORP OF NEVADA MO SAID IT SETTLED A DISPUTE WITH ITS INSURANCE CARRIER OVER OBLIGATIONS LINKED TO A SUBDIVISION BUILT NEAR A HOUSTON TOXICWASTE SITE TO COVER THE SETTLEMENT THE THRIFT HOLDING COMPANY TOOK A 135 MILLION PRETAX CHARGE FOR THE FOURTH QUARTER RESULTING IN A NET LOSS OF 4 MILLION OR 95 CENTS A SHARE FARM & HOME LAST YEAR AGREED TO A 128 MILLION SETTLEMENT WITH ABOUT 1300 RESIDENTS WHO SAID THEY SUFFERED HEALTH PROBLEMS FROM LIVING NEAR THE WASTE SITE XEROX CORP'S CRUM & FORSTER INSURANCE UNIT FARM & HOME'S INSURANCE CARRIER AGREED LAST YEAR TO PAY THE SETTLEMENT ON THE HEALTH CLAIMS CRUM & FORSTER LAST YEAR FILED A LAWSUIT THAT SOUGHT TO FORCE FARM & HOME TO REQUIRE THE THRIFT'S OTHER CARRIERS TO CONTRIBUTE FARM & HOME COUNTERSUED ALLEGING BADFAITH INSURANCE PRACTICES YESTERDAY FARM & HOME SAID IT AGREED TO PAY 97 MILLION TO THE INSURER OVER FOUR YEARS AND TO HAND OVER OTHER ASSETS 9303310002 930304 SAVING THE BANKS LIMITING DAMAGE OF DEPOSIT INSURANCE BY WILLIAM M ISAAC PRESIDENT CLINTON WILL NEED TO REVIVE THE BANKING SYSTEM TO GET THE ECONOMY MOVING THE US BANKING INDUSTRY IS BEING SUFFOCATED BY AN OVERWHELMING REGULATORY BURDEN THE DIRECT COSTS OF THIS EXCEEDINGLY HARSH AND RIGID REGULATORY ENVIRONMENT ARE ESTIMATED TO EXCEED 10 BILLION ANNUALLY EXCLUSIVE OF DEPOSIT INSURANCE COSTS MORE THAN 6 BILLION A YEAR AND THE EXPENSE ROUGHLY 1 BILLION TO 3 BILLION A YEAR DEPENDING ON INTEREST RATES OF MAINTAINING NONINTERESTBEARING RESERVES AT THE FEDERAL RESERVE THE INDIRECT COSTS ARE MUCH HIGHER IN TERMS OF BUSINESS OPPORTUNITIES LOST AT THE HEART OF THE PROBLEM IS AN OVERLY PROTECTIVE DEPOSIT INSURANCE SYSTEM WHEN THE FEDERAL DEPOSIT INSURANCE SYSTEM WAS PROPOSED IN THE EARLY 1930S IT WAS OPPOSED BY PRESIDENT ROOSEVELT HE BELIEVED IT WOULD CAUSE MARGINAL HIGHRISK BANKS TO BE SUBSIDIZED BY STRONGER BANKS AND WOULD PROVE FAR TOO COSTLY A COMPROMISE WAS REACHED THE DEPOSIT INSURANCE SYSTEM WOULD PROTECT SMALL DEPOSITORS UP TO 2500 DEPOSITS ABOVE THAT WOULD BE EXPOSED TO THE RISK OF LOSS OVER THE NEXT HALF CENTURY THIS MODEST AND SENSIBLE PLAN WAS DISTORTED BEYOND RECOGNITION THE INSURANCE LIMIT WAS RAISED SEVERAL TIMES TO ITS CURRENT 100000 EVEN MORE TROUBLESOME BEGINNING IN THE EARLY 1970S THE FEDERAL DEPOSIT INSURANCE CORP ADOPTED THE PRACTICE OF PROTECTING ALL DEPOSITORS EVEN THOSE OVER THE INSURANCE LIMIT WHENEVER A BANK OF ANY CONSEQUENCE FAILED WHEN I BECAME CHAIRMAN OF THE FDIC IN 1981 ONE OF MY PRIORITIES WAS TO RETURN THE DEPOSIT INSURANCE SYSTEM TO ITS MANDATE OF PROTECTING ONLY SMALLER DEPOSITORS I BELIEVED THE TASK WAS URGENT IN VIEW OF THE FACT THAT DEPOSIT INTEREST RATES WERE BEING DEREGULATED ALLOWING BANKS AND THRIFTS TO PAY WHATEVER THEY WISHED TO ATTRACT DEPOSITS WHILE PROTECTING ALL DEPOSITORS FROM LOSS WAS IN THE FDIC'S JUDGMENT A RECIPE FOR DISASTER THE PROBLEM WE FACED WAS HOW TO GET FROM HERE TO THERE WITHOUT CAUSING WIDESPREAD INSTABILITY IN THE BANKING SYSTEM WHICH HAD BECOME ADDICTED TO DE FACTO 100 DEPOSIT INSURANCE PROTECTION WE URGED CONGRESS TO AMEND THE LAW AS OF A DATE CERTAIN SEVERAL YEARS INTO THE FUTURE TO IMPOSE A MANDATORY HAIRCUT OF 10 OR 15 ON ALL DEPOSITS ABOVE THE INSURANCE LIMIT WHENEVER A BANK OF ANY SIZE REQUIRED FDIC FINANCIAL AID IN THE MEANTIME WE BEGAN TO DEVELOP NEW WAYS TO HANDLE BANK FAILURES INCLUDING A TECHNIQUE WE CALLED THE MODIFIED PAYOFF IN A MODIFIED PAYOFF INSURED DEPOSITORS WERE PAID 100 OF THEIR FUNDS AT THE TIME OF FAILURE TO AVOID UNDUE DISRUPTION WE ADVANCED TO UNINSURED DEPOSITORS THE AMOUNT OF MONEY SAY 70 CENTS ON THE DOLLAR WE ESTIMATED THEY WOULD ULTIMATELY RECEIVE FROM THE LIQUIDATION OF THE FAILED BANK'S ASSETS PENN SQUARE BANK WHICH FAILED IN OKLAHOMA IN 1982 WAS THE MOST NOTABLE USE OF THIS NEW APPROACH THE BANKING SYSTEM SURVIVED THIS EPISODE DESPITE STERN WARNINGS BY HIGHLEVEL OFFICIALS OF THE FEDERAL RESERVE AND COMPTROLLER'S OFFICE THAT IF THE FDIC IMPOSED A LOSS ON PENN SQUARE'S UNINSURED DEPOSITORS THE BANKING SYSTEM MIGHT COLLAPSE WE WERE MOVING ALONG NICELY WITH OUR NEW APPROACH WHEN CONTINENTAL ILLINOIS TOPPLED IN 1984 WE WERE NOT YET ABLE ADMINISTRATIVELY TO HANDLE A FAILURE OF THAT SIZE THROUGH THE MODIFIED PAYOFF MOREOVER WE BELIEVED THE BANKING AND THRIFT INDUSTRIES WERE TOO FRAGILE TO COPE WITH SUCH A DRAMATIC SHIFT IN POLICY WITHOUT MORE NOTICE AND TIME TO ADJUST SO WE RESCUED ALL DEPOSITORS AT CONTINENTAL ILLINOIS THE BAILOUT DEALT A SEVERE POLITICAL BLOW TO OUR EFFORTS TO NARROW THE SCOPE OF DEPOSIT INSURANCE PROTECTION MANY SMALL BANKS BEGAN TO CLAMOR FOR DE JURE 100 DEPOSITOR PROTECTION AT ALL BANKS SOME ACADEMICS AND GOVERNMENT OFFICIALS BEGAN TO BELIEVE THAT THE TOOBIGTOFAIL POLICY WAS TOO INGRAINED TO ABOLISH AND THEY STARTED DEVISING VARIOUS SCHEMES TO COMPENSATE FOR IT WHEN THE S&L INDUSTRY COLLAPSED IN 1988 THESE EFFORTS TOOK ON A LIFE OF THEIR OWN THE REGULATORY BURDEN IMPOSED ON BANKS AND THRIFTS WAS DRAMATICALLY INCREASED ARBITRARY CAPITAL ADEQUACY STANDARDS WERE IMPOSED COUPLED WITH MANDATORY ENFORCEMENT ACTIONS BY THE REGULATORS IF THE STANDARDS WERE VIOLATED BANK EXAMINERS BECAME MUCH HARSHER IN THEIR VALUATIONS OF LOANS POTENTIALLY MOST INSIDIOUS OF ALL PROPOSALS WERE ADVANCED TO NARROW THE LENDING DEPOSITTAKING AND INVESTMENT POWERS OF INSURED BANKS THESE PROPOSALS FOR CORE OR NARROW BANKS WHICH EVEN THEIR PROPONENTS ACKNOWLEDGE WOULD CAUSE A DRASTIC SHRINKAGE OF THE BANKING INDUSTRY REMAIN VERY MUCH ALIVE TODAY CONGRESS TO ITS CREDIT TOOK A STEP IN THE RIGHT DIRECTION LAST YEAR WHEN IT MADE IT MORE DIFFICULT LEGALLY FOR THE FDIC TO BAIL OUT UNINSURED DEPOSITORS THE FDIC HAS RESPONDED BY MAKING INCREASED USE OF THE MODIFIED PAYOFF DURING THE WEEK PRECEDING THE PRESIDENTIAL ELECTION THE FDIC COURAGEOUSLY REFUSED TO PROTECT UNINSURED DEPOSITS AT FIRST CITY BANCORPORATION OF TEXAS A 9 BILLION BANKING COMPANY DESPITE PREDICTIONS BY MANY THAT USING A MODIFIED PAYOFF IN AN INSTITUTION OF THAT SIZE COULD PROVE CATASTROPHIC THERE WAS NOT THE SLIGHTEST TREMOR IN THE FINANCIAL SYSTEM NOW CONGRESS NEEDS TO TAKE THE NEXT STEP AND SIMPLY PROHIBIT THE FDIC FROM EVER BAILING OUT UNINSURED DEPOSITORS AFTER A SET DATE SAY FIVE YEARS HENCE TO GUARD AGAINST DISRUPTIONS IN THE PAYMENTS SYSTEM NONINTERESTBEARING ACCOUNTS WHICH BY DEFINITION ARE NOT CHASING HIGH RATES SHOULD BE FULLY PROTECTED ONCE CONGRESS HAS MADE IT CLEAR THAT THE TOOBIGTOFAIL POLICY IS HISTORY IT WILL BE IN A MUCH STRONGER POSITION TO CLAMP DOWN ON THE PRACTICE OF INDIVIDUALS EXPANDING THE 100000 LIMIT BY PLACING THEIR FUNDS WITH SEVERAL BANKS THE EASIEST SOLUTION IS TO LIMIT THE INSURANCE TO 100000 PER SOCIAL SECURITY NUMBER THIS REFORM UNDERSTANDABLY HAS NOT BEEN ACCEPTABLE TO SMALL BANKS WHILE WE HAVE BEEN BAILING OUT ALL DEPOSITORS AT LARGE BANKS WE ARE AT A CRITICAL JUNCTURE IN THE EVOLUTION OF THE US BANKING INDUSTRY IF THE COVERAGE OF THE DEPOSIT INSURANCE SYSTEM IS NOT CURTAILED THE WEAK BANKS WILL CONTINUE TO DRAG DOWN THE STRONG AND THE REGULATORY YOKE AROUND THE BANKING INDUSTRY'S NECK WILL NOT BE LIFTED THE QUESTION WILL NOT BE HOW TO REVIVE THE BANKING INDUSTRY BUT HOW TO GIVE IT A RELATIVELY INEXPENSIVE BURIAL SEE RELATED LETTER LETTERS TO THE EDITOR QUAINT CALL FOR CUTTING DEPOSIT INSURANCE WSJ MARCH 30 1993 9303040113 9303310001 930331 WHAT'S NEWS BUSINESS AND FINANCE CLINTON HEALTH ADVISERS ARE CONSIDERING MAKING WORKERS' COMPENSATION AND AUTO INSURANCE HEALTH COVERAGE PART OF THE BASIC BENEFITS PACKAGE THE ADMINISTRATION WANTS TO MAKE AVAILABLE TO EVERYONE UNDER ITS HEALTH PLAN SUCH A MOVE COULD SAVE COMPANIES BILLIONS OF DOLLARS SOFTENING CORPORATE OPPOSITION TO THE PLAN MERCK IS PROPOSING A PROGRAM TO LIMIT THE INCREASE OF EVERY DRUG'S PRICE RATHER THAN JUST THE AVERAGE PRICE OF ALL OF EACH COMPANY'S DRUGS THE CLINTON ADMINISTRATION DECIDED TO SLOW SUBSTANTIALLY THE PACE OF BIOTECHNOLOGY DEREGULATION REVERSING PLANS BY BUSH OFFICIALS TO SPEED THE COMMERCIALIZATION OF GENETICALLY ENGINEERED PLANTS AND OTHER PRODUCTS CONSUMER CONFIDENCE FELL IN MARCH FOR THE THIRD STRAIGHT MONTH RAISING CONCERN THAT THE ECONOMIC RECOVERY MAY STALL BUT CONFIDENCE REMAINS FAR ABOVE LAST YEAR'S LOW LEVELS STOCKS SLUMPED ON THE CONSUMER CONFIDENCE REPORT BUT REBOUNDED TO FINISH SLIGHTLY HIGHER THE DOLLAR LOST GROUND AND BOND PRICES WERE MIXED OVERTHECOUNTER STOCKS ROSE SHARPLY THE INSURANCE INDUSTRY EXPECTS TO PAY 162 BILLION IN CLAIMS FROM A SEVERE EAST COAST STORM THIS MONTH MAKING THE EVENT THE FOURTHCOSTLIEST DISASTER IN THE NATION'S HISTORY SENATE REPUBLICANS ARE THREATENING TO BLOCK CLINTON'S ECONOMICSTIMULUS MEASURE UNLESS THE NEARLY 163 BILLION PACKAGE IS SCALED BACK CLINTON OFFICIALS SPELLED OUT PLANS TO EXPAND THE EARNED INCOME TAX CREDIT FOR POOR FAMILIES WITH CHILDREN IBM AGREED TO PAY ITS NEW CHAIRMAN AND CEO LOUIS GERSTNER 2 MILLION IN SALARY THIS YEAR PLUS A 15 MILLION BONUS IF HE REACHES CERTAIN GOALS IBM IS ALSO GIVING HIM STOCK OPTIONS AND A ONETIME 5 MILLION PAYMENT MERRILL LYNCH IS CLOSING A UNIT THAT HOLDS A PORTFOLIO OF ABOUT 1 BILLION IN LOANS TO 50 SMALL COMPANIES SOME OF WHICH ARE IN FINANCIAL TROUBLE MERRILL IS SELLING AN EXOTIC AND RISKY TYPE OF MUNICIPAL BOND CALLED AN INVERSE FLOATER TO INDIVIDUALS THE WHITE HOUSE IS RETREATING FROM ITS PROPOSAL TO TIGHTEN RULES AND RAISE FEES FOR RANCHERS MINERS AND OTHERS WHO USE FEDERAL RESOURCES BANK REGULATORS EXPANDED THEIR PROGRAM TO ENCOURAGE SMALL BUSINESS LENDING BY INCLUDING FARM LOANS PAPERWORK REQUIREMENTS ON SUCH LOANS BY HEALTHY BANKS ARE BEING SLASHED THE SUPREME COURT SAID DELAWARE CAN COLLECT HUNDREDS OF MILLIONS OF DOLLARS IN UNCLAIMED DIVIDENDS AND INTEREST HELD BY NEW YORK BROKERS THE RULING IS A DEFEAT FOR NEW YORK STATE DAIMLERBENZ REACHED A PACT WITH THE SEC TO LET THE GERMAN COMPANY'S STOCK BE LISTED ON THE BIG BOARD SONY IS REORGANIZING ITS US CONSUMER ELECTRONICS BUSINESS IN AN EFFORT TO SUSTAIN GROWTH IN A WEAK MARKET AIRBUS IS EXPECTED TO ANNOUNCE THAT IT HAS SOLD 12 JETS VALUED AT ABOUT 1 BILLION TO TWO CHINESE AIRLINES SEPARATELY AIRBUS ACCUSED BOEING OF IMPERILING TRADE TALKS ON JET SUBSIDIES CAR SALES IN WESTERN EUROPE PLUNGED 17 IN FEBRUARY FROM A YEAR EARLIER ANALYSTS SAY THIS YEAR'S DROP IN SALES COULD BE THE WORST SINCE 1974 VOLKSWAGEN OF AMERICA'S CEO IS QUITTING AT A TIME OF DISMAL SALES IN THE US FOR THE GERMAN AUTO MAKER THE EXECUTIVE WILLIAM YOUNG IS STARTING AN AUTOMOTIVE CONSULTING PRACTICE SUNBEAMOSTER'S OUSTED CHAIRMAN AND CEO PAUL KAZARIAN WAS REMOVED FROM THE HOUSEHOLD AND OUTDOOR PRODUCTS COMPANY'S BOARD BUT HE IS CHALLENGING THE MOVES AGAINST HIM BONDS LEHMAN BROTHERS TREASURY INDEX 501124 OFF 361 COMMODITIES OIL 2028 A BARREL OFF ONE CENT DOW JONES FUTURES INDEX 12754 UP 002 SPOT INDEX 12467 UP 016 DOLLAR 11656 YEN OFF 029 16173 MARKS OFF 00090 9303310159 930223 HEALTH POOR TO RECEIVE NICOTINE PATCH FROM CYANAMID BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WITH SALES OF ITS NICOTINEPATCH DRUG OFF SHARPLY AMERICAN CYANAMID CO'S LEDERLE LABORATORIES UNIT SAID IT WOULD GIVE AWAY TWO MILLION DOSES TO THE POOR LEDERLE SAID IT IS DONATING THE SMOKECESSATION DRUG TO STATE HEALTH AGENCIES TO DISTRIBUTE TO 50000 LOWINCOME SMOKERS BESIDES HEIGHTENING AWARENESS OF THE BRAND THE MOVE COULD HELP THE COMPANY'S IMAGE WHICH HAS BEEN TARNISHED BY PRESIDENT CLINTON'S ATTACK ON PRICING BY VACCINE MAKERS SUCH AS LEDERLE THE COMPANY ALSO PLANS TO HOLD A TELEPHONE PRESS CONFERENCE TODAY TO EXPLAIN ITS POSITION ON THE PRESIDENT'S PROPOSAL TO IMMUNIZE ALL AMERICAN CHILDREN AND PRESUMABLY TO DEFEND ITSELF AGAINST THE PRESIDENT'S CRITICISM THAT VACCINE MAKERS MADE PROFITS AT THE EXPENSE OF CHILDREN PHARMACEUTICAL COMPANIES HAVE LONG PROVIDED PRESCRIPTION DRUGS TO INDIGENT PATIENTS BUT THE COMPANIES ARE EXPECTED TO PUBLICIZE THESE PROGRAMS MORE NOW TO COUNTER CRITICISM ABOUT THEIR PRICES AND PROFITS WHEN ITS PRICING OF THE ANTICANCER DRUG TAXOL CAME UNDER FIRE LATE LAST YEAR BRISTOLMYERS SQUIBB CO CITED ITS PROGRAM TO PROVIDE DRUGS FREE OF CHARGE TO INDIGENT CANCER PATIENTS ABOUT 14000 PATIENTS HAVE BENEFITED IN THE PAST FIVE YEARS A SPOKESMAN SAYS WE UNDERSTAND THE ADMINISTRATION'S INTEREST IN PUBLIC AND PRIVATE PARTNERSHIP SAID EDWARD V FRITZKY PRESIDENT OF LEDERLE LABORATORIES IN TALKING ABOUT THE COMPANY'S PATCH PROGRAM PUBLICITY FOR ITS PATCH DONATION MAY ALSO HELP PROMOTE LEDERLE'S PATCH WHICH HAS BEEN A DISTANT THIRD OR FOURTH IN SALES ALONG WITH OTHER PATCH BRANDS PROSTEP'S SALES HAVE DROPPED OFF PRECIPITOUSLY SINCE THEY PEAKED LAST APRIL NEW PRESCRIPTIONS FOR PROSTEP IN JANUARY WERE 26000 COMPARED WITH 96000 IN APRIL ACCORDING TO HEMANT SHAH AN INDEPENDENT ANALYST LIKE OTHER NICOTINE MAKERS LEDERLE INCREASED CAPACITY TO MEET RUNAWAY DEMAND OTHER PATCH MAKERS ARE CIBAGEIGY CORP MARION MERRELL DOW INC AND WARNERLAMBERT CO WHICH INTRODUCED ITS PATCH IN AUGUST A CIBAGEIGY SPOKESMAN SAID IT'S NICE THEY'RE TRYING TO HELP PEOPLE OUT HE ADDED THAT HIS COMPANY DOESN'T HAVE A SIMILAR PROGRAM BUT WE ALWAYS LOOK AT DIFFERENT OPTIONS WARNERLAMBERT AND MARION MERRELL DOW DECLINED TO COMMENT ON LEDERLE'S MOVE WHILE LAUDED BY HEALTH OFFICIALS LEDERLE'S PLAN TO DONATE ITS PROSTEP NICOTINE PATCHES HAS ALSO RENEWED QUESTIONS ABOUT THE EFFECTIVENESS OF THE SMOKINGCESSATION AIDS PARTICULARLY FOR LOWINCOME PEOPLE THE THERAPY IS ONLY MODERATELY EFFECTIVE AMONG PATIENTS WHO CAN AFFORD TO PAY FOR THE PATCH AND ACCOMPANYING BEHAVIORMODIFICATION PROGRAM SOME HEALTH OFFICIALS DOUBT THE PATCH WILL WORK EVEN THAT WELL AMONG PEOPLE WHO RECEIVE PUBLIC ASSISTANCE BECAUSE OF ECONOMIC IMPEDIMENTS LITERACY PROBLEMS AND THE RECIPIENTS' SOCIAL ENVIRONMENT IT SOUNDS LIKE A GOOD PUBLIC RELATIONS THING BUT IN TRUTH I'M AFRAID THE PATCHES ARE GOING TO BE WASTED SAID CALVIN FUHRMANN CHIEF OF THE RESPIRATORY DIVISION AT BALTIMORE'S HARBOR HOSPITAL CENTER WHERE HE RUNS SMOKINGCESSATION CLINICS THAT INCLUDE LOWINCOME PATCH USERS UNDER THE LEDERLE PLAN THE COMPANY WILL DONATE THE PATCHES TO THE ASSOCIATION OF STATE AND TERRITORIAL HEALTH OFFICIALS WHICH WILL IN TURN DISTRIBUTE THE PATCHES TO STATE AGENCIES LEDERLE AND THE ASSOCIATION ARE LEAVING THE DETAILS OF WHO GETS THE PATCH AND WHAT TYPE OF SUPPORTING THERAPY THEY RECEIVE TO THE STATES SAID GEORGE DEGNON EXECUTIVE VICE PRESIDENT OF THE ASSOCIATION THIRTYSEVEN STATES HAVE EXPRESSED INTEREST IN PARTICIPATING MOST LOWINCOME PEOPLE DON'T HAVE ACCESS TO THE PATCH BECAUSE MEDICAID AND INSURANCE PROGRAMS USUALLY DON'T COVER ITS COST WHICH RUNS ABOUT 4 A DAY YET SMOKINGCESSATION HELP IS NEEDED BECAUSE THERE IS A RELATIVELY HIGH PREVALENCE OF SMOKING AMONG THE POPULATIONS SERVED BY PUBLIC ASSISTANCE AGENCIES MR DEGNON SAID BUT THE PATCH ALONE WON'T SOLVE THE PROBLEM DR FUHRMANN SAID LOWINCOME PATIENTS WHO RECEIVE THE PATCH THROUGH MEDICAID PROGRAMS ARE AMONG THE MOST PROBLEMATIC IN HIS PROGRAM AND HAVE A LOWER SUCCESS RATE WHICH HE ATTRIBUTES IN PART TO A LACK OF SUPPORT ONCE THEY LEAVE THE CLINIC ONE MAN HAS BEEN THROUGH HIS PROGRAM THREE TIMES HE SAID AND DOES FINE UNTIL THE PROGRAM ENDS AT HOME HE DOESN'T HAVE SUPPORT HIS SPOUSE SMOKES EVERYONE IN HIS FAMILY SMOKES HE SAID OTHER PATIENTS ARE UNDER SOCIAL PRESSURE TO SMOKE IF YOU DON'T SMOKE THEY SAY YOU'RE A WIMP HE SAID THE PATCHES ARE INTENDED TO BE USED WITH SOME FORM OF BEHAVIORMODIFICATION PROGRAM BESIDES INCREASING THE CHANCES FOR SUCCESS SUCH PROGRAMS CAN ALSO PREVENT POTENTIALLY SERIOUS PROBLEMS FROM PATCH MISUSE LAST YEAR ISOLATED REPORTS OF HEART ATTACKS IN PATIENTS WHO CONTINUED TO SMOKE WHILE UNDERGOING THE NICOTINEPATCH THERAPY MADE HEADLINES ALTHOUGH A DIRECT LINK BETWEEN THE TWO WASN'T PROVED LEDERLE WILL BE PROVIDING ACCESS TO ITS PROSTEP BILINGUAL SUPPORT HOTLINE WHICH CONNECTS PATIENTS TO TRAINED SMOKINGCESSATION SPECIALISTS WHO OFFER ADVICE ENCOURAGEMENT AND MOTIVATION ANOTHER TOLLFREE HOTLINE WILL GIVE PATIENTS REFERRALS TO LOCAL SMOKINGCESSATION PROGRAMS RUSSELL SCIANDRA DIRECTOR OF THE TOBACCOCONTROL PROGRAM FOR NEW YORK STATE SAID HIS AGENCY IS INTERESTED IN THE PROGRAM AND HAS REQUESTED PATCHES TO TREAT 5000 SMOKERS BUT THE STATE HASN'T WORKED OUT HOW THE DRUG WILL BE DISTRIBUTED HE SAID OR WHAT SORT OF SUPPORT THERAPY WILL BE INCLUDED IF ANY PROBABLY THE MOST IMPORTANT IMPACT OF THE PATCH ISN'T SO MUCH IN RAISING THE SUCCESS RATE OF PEOPLE WHO ATTEMPT TO QUIT BUT IN ENCOURAGING MORE PEOPLE TO MAKE THE ATTEMPT HE SAID SEE RELATED LETTER LETTERS TO THE EDITOR CLEANING UP BAD HABITS CAN MEAN LONGER LIFE WSJ MARCH 30 1993 9302230010 9303300166 930330 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED MARCH 26 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER COCONINO COUNTY ARIZ WILL REDEEM ON APRIL 15 1993 ITS 1977 SERIES A POLLUTION CONTROL REVENUE BONDS FIRST INTERSTATE BANK OF ARIZONA IS TRUSTEE DECATUR ILL WILL REDEEM ON APRIL 24 1993 ITS 1979 SERIES A SINGLE FAMILY MORTGAGE REVENUE BONDS FIRST WISCONSIN TRUST CO IS TRUSTEE LOWER NECHES VALLEY AUTHORITY INDUSTRIAL DEVELOPMENT CORP WILL REDEEM ON MAY 1 1993 1070000 PRINCIPAL AMOUNT OF ITS 59 SERIES A POLLUTION CONTROL REVENUE BONDS DUE MAY 1 2001 NATIONSBANK OF TEXAS IS TRUSTEE NAVAJO COUNTY ARIZ POLLUTION CONTROL CORP WILL REDEEM ON APRIL 15 1993 ITS 1977 SERIES A POLLUTION CONTROL REVENUE BONDS FIRST INTERSTATE BANK OF ARIZONA IS TRUSTEE WASHINGTON COUNTY PA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON APRIL 16 1993 ITS 9 3/4 1983 SERIES B POLLUTION CONTROL REVENUE BONDS DUE JAN 15 2003 AND ITS 9 1/2 1983 SERIES C POLLUTION CONTROL REVENUE BONDS DUE MARCH 15 2003 MELLON BANK PITTSBURGH IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM THE FOLLOWING MEDIUM TERM NOTE ISSUES ON APRIL 16 1993 18000000 PRINCIPAL AMOUNT OF ITS 8 DUE APRIL 16 1996 ON APRIL 19 1993 20000000 OF ITS 805 DUE APRIL 19 1996 ON APRIL 26 10000000 OF ITS 805 AND 15000000 OF ITS 806 BOTH DUE APRIL 26 1996 AND ON APRIL 30 1993 10000000 OF ITS 808 DUE APRIL 30 1996 FLORIDA POWER & LIGHT CO UNIT OF FPL GROUP INC WILL REDEEM ON APRIL 16 1993 750000 SHARES OF ITS 87 PREFERRED STOCK SERIES K THE FIRST NATIONAL BANK OF BOSTON IS PAYING AGENT GEORGIA POWER CO A UNIT OF SOUTHERN CO WILL REDEEM ON APRIL 17 1993 ITS 5 3/4 FIRST MORTGAGE BONDS DUE 1996 CHEMICAL BANK NEW YORK IS PAYING AGENT 9303300165 930330 TECHNOLOGY MCI TALKS TO ENTERTAINMENT FIRMS CABLE TV CONCERNS ABOUT PARTNERSHIPS BY JOHN J KELLER AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL MCI COMMUNICATIONS CORP'S PRESIDENT SAID THE COMPANY IS TALKING TO LOTS OF PARTIES IN THE CABLE TELEVISION AND ENTERTAINMENT INDUSTRY ABOUT PARTNERSHIPS AND POSSIBLY SELLING A STAKE IN ITSELF AS IT TRIES TO BECOME A BROADER CARRIER OF COMMUNICATIONS SERVICES ONE OF THOSE TALKS IS SAID TO INVOLVE CABLE TELEVISION COMPANIES INCLUDING TELECOMMUNICATIONS INC THE US'S LARGEST CABLE TV COMPANY ACCORDING TO INDIVIDUALS FAMILIAR WITH THE TALKS WHILE NEITHER MCI'S PRESIDENT DANIEL AKERSON NOR TCI WOULD GIVE DETAILS OF THE DISCUSSIONS THE INDIVIDUALS SAID THE COMPANIES HAVE DISCUSSED FORMING A CONSORTIUM THAT WILL OFFER CONSUMERS WIRELESS TELEPHONE SERVICES NATIONWIDE MCI'S TALKS COME AS THE WORLD'S TELECOMMUNICATIONS COMPANIES BEGIN TO REFASHION THEMSELVES FOR A NEW ERA BY THE NEXT CENTURY MCI AND OTHER CARRIERS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO AND BRITISH TELECOMMUNICATIONS PLC ENVISION A NEW KIND OF CONSUMER SERVICE THAT MARRIES TELECOMMUNICATIONS AND COMPUTER TECHNOLOGIES OR WHAT THEY CALL MULTIMEDIA CONSUMERS COULD NOT ONLY MAKE CALLS USING LIGHTWEIGHT POCKET PHONES THEY COULD ALSO SHOP FROM HOME THROUGH THESE NETWORKS OR PLAY INTERACTIVE VIDEO GAMES OUTSIDE THE HOME THEY COULD CARRY POCKET COMMUNICATORS TO GAIN ACCESS TO MANY OF THE SAME SERVICES ONLY WITHOUT WIRES MULTIMEDIA WILL CHANGE THE WHOLE WORLD SAID MR AKERSON IN AN INTERVIEW IT IS UNCLEAR HOW MCI'S CABLE TELEVISION PLANS WILL PLAY OUT MCI COULD DO A DEAL WITH NUMEROUS TCI RIVALS INCLUDING TIME WARNER INC BUT CLEARLY THE PERSONAL COMMUNICATION SERVICE WOULD BE AIMED SQUARELY AT OTHER CONSUMER WIRELESS PHONE OFFERINGS AT&T HAS TEAMED UP WITH MCCAW CELLULAR COMMUNICATIONS INC TO OFFER SERVICE NATIONWIDE IN THE CELLULAR FREQUENCY BAND AND THE US'S BIGGEST LOCAL PHONE COMPANIES HAVE A NATIONAL SERVICE CALLED MOBILINK THAT USES THEIR CELLULAR NETWORKS THE FEDERAL COMMUNICATIONS COMMISSION HAS YET TO ISSUE LICENSES FOR THE NEW WIRELESS SERVICES WHICH WOULD COMPETE WITH TRADITIONAL CELLULAR PHONE SERVICE BUT AT A DIFFERENT RADIO FREQUENCY WHICH HAS YET TO BE ALLOCATED NONETHELESS THE CABLE COMPANIES SUCH AS TCI HAVE BEEN TESTING THESE SOCALLED PERSONAL COMMUNICATION SERVICES WHICH LET CUSTOMERS USE TINY WIRELESS PHONES TO MAKE CALLS THESE RADIO SYSTEMS WOULD BE LINKED DIRECTLY BY WIRES TO THEIR CABLE SYSTEMS WHICH IN TURN COULD HAND OFF THE TRAFFIC TO INTERNATIONAL CARRIERS SUCH AS MCI CELLULAR COMPANIES OFFER SUCH SERVICES NOW THROUGH THEIR SYSTEMS MR AKERSON DECLINED TO COMMENT ON SPECIFIC CABLE LINKUPS OTHER THAN TO SAY THE TRADITIONAL NETWORKS WILL CEASE TO EXIST IN THE MULTIMEDIA ERA HE DID SAY MCI'S POSITION AS THE SECOND LARGEST LONGDISTANCE CARRIER IN THE US MAKES IT AN ATTRACTIVE PARTNER FOR ANY NEWCOMER WE'RE THE PRETTIEST GIRL AT THE DANCE HE SAID BUT HE ACKNOWLEDGED MCI DOESN'T HAVE THE FINANCIAL WHEREWITHAL TO BE A GLOBAL COMPETITOR AND WOULD NEED PARTNERS OR EVEN A BIG INVESTOR HE ALSO SAID MCI WOULD BE COMPETITIVELY DISADVANTAGED IF IT DIDN'T HAVE A SIMILAR SERVICE TO AT&T MCCAW'S WHICH WILL GIVE MCCAW CUSTOMERS DIRECT ACCESS TO THE AT&T NETWORK THAT WAS A GREAT DEAL AT&T MADE WITH MCCAW MR AKERSON SAID ROBERT THOMSON TCI SENIOR VICE PRESIDENT OF COMMUNICATIONS WOULDN'T COMMENT ON SPECIFIC TALKS THE COMPANY HAS HAD CONCERNING POSSIBLE VENTURES BUT HE SAID TCI'S CABLE NETWORKS WOULD CLEARLY BE SUITABLE FOR PERSONAL COMMUNICATION SERVICE BUT HE NOTED TCI'S PHONE EXPERTISE IS LIMITED WE'RE OPEN TO A RANGE OF SUGGESTIONS FROM A WIDE RANGE OF PARTIES HE SAID A CABLE HOOKUP WOULD ALLOW MCI TO CAST A WIDER NET MCI AND TCI FOR EXAMPLE HAVE ABOUT 14 MILLION AND 10 MILLION SUBSCRIBERS RESPECTIVELY IF LICENSED EACH COMPANY COULD MARKET THE NEW PHONE SERVICES TO THEIR SUBSCRIBERS 9303300164 930330 REVIEW & OUTLOOK EDITORIAL CHESS POLITICS ONCE AND FOR ALL BORIS YELTSIN SHOULD UNDERSTAND THAT THERE IS NO SENSE IN DEALING WITH THE RUSSIAN CONGRESS YESTERDAY IT WHOOPED THROUGH A REFERENDUM OF ITS OWN MAKING WITH THE OUTCOME STACKED HEAVILY AGAINST MR YELTSIN THESE PARLIAMENTARIANS KNOW THAT A SERIOUS DEMOCRATIC VOTE ANY TIME WILL SEND THEM STRAIGHT TO OBLIVION THE LESSON IS CLEAR RUSSIA CAN GO THE DEMOCRATIC ROUTE OR IT CAN COBBLE TOGETHER SOME SHAMBOLIC ACCORD ACCEPTABLE TO THESE THROWBACKS ANY PLAN THAT COULD WIN CONGRESSIONAL APPROVAL PROBABLY BETRAYS DEMOCRACY NINE DAYS AGO IT SEEMED THAT BORIS YELTSIN UNDERSTOOD THIS MR YELTSIN'S CALL FOR PRESIDENTIAL RULE AND A PUBLIC REFERENDUM SEEMED DESIGNED TO TAKE GOVERNMENT TO THE PEOPLE RATHER THAN RESTRICTING IT TO THE PARLIAMENTARY HOTHOUSE IT SEEMED DESIGNED TO CLARIFY DIFFERENCES RATHER THAN BLURRING THEM AMID AN ENDLESS CYCLE OF CONFRONTATION AND COMPROMISE LIKE WE'VE SEEN THE PAST FEW DAYS BUT AFTER ISSUING THE DECREE MR YELTSIN RETURNED TO ADDRESS AND BARGAIN WITH THE CONGRESS AND ITS LEADERS BY HIS MERE PRESENCE HE GRANTED THE CONGRESS LEGITIMACY IT DOES NOT DESERVE IT WAS A REMINDER ONCE AGAIN THAT CHESS MAY BE THE RUIN OF RUSSIA RUSSIAN POLITICAL LEADERS LOVE TO SEE THEMSELVES AS MASTER TACTICIANS SUBTLY OUTMANEUVERING THEIR POLITICAL FOES BUT WHETHER IT IS GORBACHEV VS YELTSIN OR YELTSIN VS KHASBULATOV CHESS POLITICS ONLY WEAKENS THE GOVERNMENT THE POLITICIANS ENGAGE IN EVER MORE INTRICATE GAMBITS WHILE THE PUBLIC REGARDS THEIR TACTICAL DUETS AS IRRELEVANT ALL LAST WEEK MR YELTSIN WAS BACK AT THE CHESSBOARD HE SEEMED TO BE WINNING THE TACTICAL BATTLES TO THE EXTENT THAT IT MATTERS WHO WINS THESE EPHEMERAL SKIRMISHES HIS FOES TRIED TO IMPEACH HIM AND FAILED HE RESHUFFLED HIS CABINET AND GAVE MORE POWER TO RADICAL FREE MARKETEER BORIS FYODOROV WHO ONCE DECLARED HIMSELF A THATCHERITE BUT THEN ON SATURDAY NIGHT HE MADE AN ADDRESS BEFORE THE CONGRESS THAT SENT SHIVERS DOWN THE SPINE HIS FACE WAS SWOLLEN AND HIS SUIT A MESS HE SEEMED PENITENT AND APOLOGETIC ACTUALLY BLAMING HIMSELF MORE THAN THE CONGRESS FOR THE STATE OF AFFAIRS HE FALTERED OVER HIS SPEECH STARING DOWN MUTELY AT HIS NOTES THROUGH AGONIZING SECONDS HIS CRITICS IMMEDIATELY CLAIMED THAT HE WAS DRUNK BUT FRANKLY THE WORLD HAS SEEN MR YELTSIN WITH A FEW DRINKS UNDER HIS BELT AND SATURDAY'S PERFORMANCE COULD NOT HAVE BEEN THAT IT WAS A STERN REMINDER THAT HISTORY IS MADE BY HUMAN BEINGS IT IS WORTH REMEMBERING THAT MR YELTSIN'S MOTHER KLAVDIA HAD DIED JUST DAYS BEFORE IT WOULD BE NATURAL FOR HER DEATH TO CREATE SOME VULNERABILITY IN THIS COMPLICATED MAN AND HE ADMITTED AS MUCH AFTER HIS TALK ON SATURDAY NIGHT MR YELTSIN IS LIKE RUSSIA ALTERNATELY SENTIMENTAL AND FIERCE BAFFLING FOOLISH AND SAVVY IF HE WASN'T HE WOULDN'T HOLD SUCH A SPECIAL PLACE IN THE RUSSIAN HEARTS IT'S NO USE WISHING FOR A MORE RATIONAL PREFAB POLITICIAN IN THE WESTERN MANNER ON SUNDAY MR YELTSIN ADDRESSED A MASS RALLY AND SEEMED TO HAVE REGAINED SOME OF HIS FIRE IT'S BEEN A LONG TIME SINCE I COULD FEEL THE BREATH OF 7000080000 PEOPLE HE BEGAN HE RELAUNCHED THE REFERENDUM CAMPAIGN WHICH OF COURSE CAUSED THE CONGRESS TO COUNTER YESTERDAY WITH ITS REFERENDUM SCHEME LEAVING ASIDE HIS CROWD ESTIMATE THERE ARE A FEW ISSUES ON WHICH MR YELTSIN APPEARS UNSHAKABLE EVEN AMID CHESS MANEUVERINGS FIRST HE HAS NOT COMPROMISED HIS COMMITMENT TO FREE MARKET REFORM THE FYODOROV APPOINTMENT PROVES THAT FURTHERMORE MR YELTSIN IS SURELY RIGHT IN ARGUING FOR A CONSTITUTION WITH STRONG PRESIDENTIAL POWERS LACKING POLITICAL PARTIES AND PARTY DISCIPLINE ANY PARLIAMENT IN RUSSIA IS BOUND TO END UP CHAOTIC THE WEST SEEMS TO BE HEADING TOWARD AN AID PACKAGE THAT WILL DEAL DIRECTLY WITH THE RUSSIANS WHO ARE SUFFERING MOST RATHER THAN MERELY HANDING MONEY TO THE CENTRAL AUTHORITY FOR PROMPT REINVESTMENT IN SWITZERLAND THIS IS THE LEAST BAD OF ALL POSSIBLE AID APPROACHES BY GIVING POOR RUSSIANS DOLLARS AND WE DO MEAN DOLLARS THE WEST GIVES THE UNDERPRIVILEGED A PSYCHOLOGICAL PIECE OF THE NEW RUSSIA EVEN IN THE MIDDLE OF ALL THIS POLITICAL TURMOIL INDIVIDUAL RUSSIANS ARE MAKING THE HORRENDOUSLY PAINFUL JOURNEY FROM THE OLD WAY OF LIVING TO THE NEW THEY FIND POLITICIANS LUDICROUS BECAUSE THEY ARE STILL ENGAGING IN SOVIETSTYLE POWER PLAYS WHAT THE PEOPLE ON THE STREETS OF RUSSIA WANT IS A NEW POLITICS THAT IS ABOUT DEMOCRATICALLY DERIVED CHOICES NOT CHESS TACTICS 9303300162 930330 MUTUAL FUNDS STOCK MUTUAL FUNDS' SALES KEEP SOARING BODING WELL FOR THE MARKET'S FUTURE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS CONTINUE TO SWARM INTO STOCK MUTUAL FUNDS PROVIDING THE FUEL THAT COULD DRIVE STOCK PRICES HIGHER STOCK FUNDS ATTRACTED 87 BILLION IN NEW MONEY DURING FEBRUARY ACCORDING TO FIGURES RELEASED BY THE INVESTMENT COMPANY INSTITUTE THE TRADE GROUP FOR THE MUTUALFUND INDUSTRY FEBRUARY'S SALES WERE DOWN MODESTLY FROM JANUARY'S LEVEL WHEN STOCK FUNDS PULLED IN AN UNPRECEDENTED 102 BILLION BUT FEBRUARY'S SALES SURGED 16 FROM A YEAR EARLIER AND THE HEADY SALES PACE HAS CONTINUED THIS MONTH MANY MUTUALFUND COMPANIES SAY THAT MARCH'S STOCKFUND SALES ARE RUNNING AHEAD OF FEBRUARY'S EVERYTHING I HEAR BOTH FROM OUR BROKERS AND FROM OUR COMPETITORS INDICATES THAT THIS IS GOING TO BE AN EXTRAORDINARY MONTH SAYS TIM PITTS AN EXECUTIVE VICE PRESIDENT AT NEW YORK'S OPPENHEIMER MANAGEMENT CORP OUR SALES WILL HIT AN ALLTIME RECORD WITH A HIGH BIAS TOWARDS FIXED INCOME FIDELITY INVESTMENTS INVESCO FUNDS GROUP T ROWE PRICE ASSOCIATES PUTNAM COS STATE STREET RESEARCH & MANAGEMENT STRONG FUNDS AND VANGUARD GROUP SAY STOCKFUND SALES THIS MONTH ARE RUNNING AT OR AHEAD OF FEBRUARY'S PACE THAT'S GOOD NEWS FOR THE STOCK MARKET WHERE MUTUAL FUNDS HAVE EMERGED AS A MAJOR BUYING POWER AND STOCK FUNDS HAVE PLENTY OF BUYING POWER TO SPARE AT THE END OF FEBRUARY STOCK FUNDS WERE SITTING ON 479 BILLION IN CASH EQUAL TO 95 OF STOCK FUND ASSETS THAT'S UP FROM JANUARY'S LEVEL OF 89 AND WELL ABOVE THE RECENT LOW OF 79 REACHED IN JANUARY 1992 THE LATEST NUMBERS FROM THE INVESTMENT COMPANY INSTITUTE ALSO PROVIDE GOOD NEWS FOR THE BOND MARKET INVESTORS POURED JUST OVER 107 BILLION INTO BOND FUNDS IN FEBRUARY COMPARED WITH SLIGHTLY LESS THAN 107 BILLION IN JANUARY AND 83 BILLION IN FEBRUARY 1992 THE INSTITUTE'S FIGURES REFLECT FUND SALES LESS REDEMPTIONS PLUS THE NET RESULT OF SWITCHES AMONG FUNDS IN THE SAME FUND GROUP REINVESTED DIVIDENDS ARE EXCLUDED BOTH STOCKFUND AND BONDFUND SALES HAVE REMAINED BUOYANT IN MARCH ACCORDING TO AMG DATA SERVICES AN ARCATA CALIF CONCERN THAT TRACKS THE WEEKLY CASH FLOW INTO MUTUAL FUNDS MONEY CONTINUES TO COME INTO EQUITY FUNDS BUT NOT WITH THE STRENGTH THAT WAS EXPERIENCED IN THE POSTELECTION PERIOD SAYS ROBERT ADLER AMG'S PRESIDENT THERE IS NO LETUP IN THE MONEY COMING INTO TAXABLE FIXEDINCOME FUNDS BUT WHILE INVESTORS CONTINUE TO HAVE A VORACIOUS APPETITE FOR STOCK AND BOND FUNDS THE PATTERN OF BUYING SEEMS TO BE SHIFTING FOR INSTANCE THERE ARE SIGNS THAT STOCKFUND BUYERS ARE FAVORING VALUE FUNDS WHICH BUY STOCKS THAT ARE CHEAP COMPARED WITH CURRENT EARNINGS OR CORPORATE ASSETS OVER GROWTHSTOCK FUNDS WHICH BUY COMPANIES WITH RAPIDLY INCREASING PROFITS VALUE FUNDS EASILY OUTPERFORMED GROWTHSTOCK FUNDS IN 1992 THAT TREND HAS CONTINUED THIS YEAR WITH VALUE FUNDS UP 69 AND GROWTHSTOCK FUNDS DOWN 25 ACCORDING TO FUND RESEARCHERS LIPPER ANALYTICAL SERVICES THE POPULARITY OF VALUE FUNDS AND THE DISENCHANTMENT WITH GROWTHSTOCK FUNDS CAN BE VIVIDLY SEEN AT BALTIMORE'S T ROWE PRICE ASSOCIATES THE FIRM'S 398 MILLION SMALLCOMPANY VALUE FUND WHOSE PERFORMANCE HAS SOARED 73 SO FAR THIS YEAR WAS FORCED TO CLOSE TO NEW INVESTORS ON MARCH 4 AFTER INVESTORS INUNDATED THE FUND WITH NEW MONEY THIS YEAR HASN'T BEEN QUITE SO PLEASANT FOR T ROWE PRICE NEW HORIZONS FUND THE FUND COMPANY'S 14 BILLION SMALLCOMPANY GROWTH FUND INVESTORS HAVE BEEN CASHING OUT OF THE FUND WHICH HAS TUMBLED 46 IN THE YEAR THROUGH THURSDAY MEANWHILE INVESTORS ARE MOVING MONEY INTO FOREIGNSTOCK FUNDS SAY FIDELITY T ROWE PRICE STRONG FUNDS AND TNE FUND GROUP THE FUNDS WHICH HAVE BEEN LACKLUSTER PERFORMERS FOR MUCH OF THE PAST FOUR YEARS HAVE SURGED 6 IN 1993 THAT'S BETTER THAN THE 24 AVERAGE GAIN FOR DIVERSIFIED US STOCK FUNDS THE INTERNATIONAL FUNDS ARE HAVING THE STRONGEST SALES MONTH THEY'VE HAD IN A YEAR SAYS MICHAEL HINES A SENIOR VICE PRESIDENT AT FIDELITY THE COUNTRY'S LARGEST MUTUALFUND GROUP SOME FUND COMPANIES REPORT A SLOWDOWN AMONG MUNICIPALBOND FUND SALES WHICH SURGED IN FEBRUARY AS INVESTORS REACTED TO THE PROSPECT OF HIGHER INCOME TAXES WHAT WE SAW IN FEBRUARY WAS AN EXPLOSIVE GROWTH AMONG THE TAXFREE FUNDS SAYS MR HINES IT SUBSIDED THIS MONTH FIDELITY AND VANGUARD SAY THEIR MUNICIPALBOND FUND SALES WERE DOWN IN MARCH PUTNAM SAYS ITS SALES WERE FLAT SHORTTERM BOND FUNDS REMAIN POPULAR SAYS ANDREW ZIEGLER PRESIDENT OF MILWAUKEE'S STRONG FUNDS THERE CONTINUES TO BE AN ACTIVE INTEREST IN THE SHORTERDURATION BOND FUNDS PRESUMABLY AS AN ALTERNATIVE TO CERTIFICATES OF DEPOSIT SAYS MR ZIEGLER PEOPLE ARE DESPERATE FOR YIELD THEY'RE WILLING TO LIVE WITH SOME MODEST FLUCTUATIONS IN PRINCIPAL TO GET IT BUT ADJUSTABLERATE MORTGAGE FUNDS WHICH WERE ALSO CONCEIVED AS A SLIGHTLY RISKIER BUT HIGHERYIELDING ALTERNATIVE TO MONEY MARKET FUNDS AND CDS SEEM TO BE FALLING FROM FAVOR AMG DATA SERVICES SAYS SHAREHOLDERS HAVE BEEN PULLING MONEY OUT OF THE FUNDS IN RECENT WEEKS THE ADJUSTABLERATE MORTGAGE FUNDS HAVE DONE BETTER THAN MONEY MARKET FUNDS SO FAR THIS YEAR BUT MANY OF THE FUNDS HAVE RETURNED LESS THAN 1 IN 1993 WHICH IS BELOW THE 38 AVERAGE RETURN NOTCHED UP BY TAXABLE BOND FUNDS 9303300161 930330 BUSINESS BRIEF RELIANCE GROUP TO POST 4THPERIOD LOSS STEMMING FROM POSSIBLE SALE OF A UNIT NEW YORK RELIANCE GROUP HOLDINGS INC SAID IT WILL REPORT A FOURTHQUARTER LOSS RELATED TO THE POSSIBLE SALE OF ONE OF ITS LIFEINSURANCE UNITS RELIANCE SAID YESTERDAY IT HAS TURNED DOWN A 525 MILLION OFFER FOR THE UNIT UNITED PACIFIC LIFE INSURANCE CO AND IS STILL NEGOTIATING WITH ANOTHER POTENTIAL BUYER THE SPURNED SUITOR WHICH SOURCES SAID IS THE GE CAPITAL UNIT OF GENERAL ELECTRIC CORP HAS SUED RELIANCE FOR NOT ACCEPTING ITS OFFER RELIANCE MAINTAINS THE LAWSUIT IS GROUNDLESS APPARENTLY RELIANCE THINKS IT CAN GET MORE MONEY FROM ANOTHER BUYER SAID JOHN SNYDER SENIOR VICE PRESIDENT OF AM BEST CO AN INSURANCERATING AGENCY UNITED PACIFIC WITH ABOUT 5 BILLION IN ASSETS HAS BEEN A DRAIN FOR RELIANCE RECEIVING 280 IN CAPITAL CONTRIBUTIONS OVER THE PAST FIVE YEARS ACCORDING TO FRED TOWNSEND OF TOWNSEND & SCHUPP A HARTFORD CONN INSURANCE CONSULTANT THE COMPANY HAS BEEN HURT BY POLICYHOLDER SURRENDERS BECAUSE OF ITS HIGH EXPOSURE TO JUNK BONDS MR TOWNSEND SAID THE POSSIBLE SALE IS PART OF A CONTINUING EFFORT BY RELIANCE TO STREAMLINE ITS OPERATIONS AND BUILD UP ITS PROPERTY AND CASUALTY BUSINESS WITHIN THE PAST YEAR IT HAS SOLD ITS INSURANCEBROKERAGE UNIT FRANK B HALL AND ITS MORTGAGEINSURANCE BUSINESS COMMONWEALTH MORTGAGE ASSURANCE THE SALE OF UNITED PACIFIC WOULD BE MEAN A LOSS FOR RELIANCE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BUT UNDER THE ACCOUNTING RULES OF INSURANCE REGULATORS IT WOULD BE A GAIN FOR RELIANCE'S FLAGSHIP PROPERTY AND CASUALTY UNIT RELIANCE INSURANCE CO RELIANCE INSURANCE FINISHED 1992 WITH A STATUTORY SURPLUS OF 858 MILLION ANALYSTS EXPECT RELIANCE TO SELL OTHER UNITS BEFORE ITS RESTRUCTURING IS COMPLETE IT'S NOT THE LAST STEP THAT'S BEING CONTEMPLATED MR SNYDER SAID THEY WANT TO RAISE CAPITAL AND SELL ADDITIONAL ASSETS AND FOCUS ON SPECIALITY BUSINESSES RELIANCE NATIONAL WRITES INSURANCE FOR LARGE NATIONAL COMPANIES AND ALSO SPECIALTY INSURANCE SUCH AS THAT FOR THE TRUCKING INDUSTRY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY RELIANCE CLOSED AT 775 UP 75 CENTS 9303300160 930330 ECONOMY INVESTORS BUY UP APARTMENT BUILDINGS ANTICIPATING FALLING VACANCY RATES BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL ANTICIPATING DECLINES IN VACANCY RATES INVESTORS ARE BUYING APARTMENT BUILDINGS THROUGHOUT THE US AND DEVELOPERS HAVE BEGUN BUILDING NEW UNITS IN CITIES WHERE SUPPLY SHORTFALLS HAVE ALREADY APPEARED APARTMENTS ARE BY FAR THE HEALTHIEST COMMERCIAL REAL ESTATE SECTOR BECAUSE THEY WERE OVERBUILT VERY EARLY ON SAID MICHAEL EVANS HEAD OF REAL ESTATE AT ERNST & YOUNG AN ACCOUNTING AND CONSULTING FIRM DEMAND IS EXPECTED TO OUTSTRIP SUPPLY SOONER IN MULTIFAMILY HOUSING THAN IN OTHER COMMERCIAL REAL ESTATE SECTORS BECAUSE CONSTRUCTION GROUND TO A HALT AT LEAST TWO YEARS EARLIER WHEN CHANGES IN TAX LAWS ELIMINATED INCENTIVES TO INVEST INVESTORS EXPECT IT TO TAKE FAR LONGER FOR EXCESS SUPPLY TO BE WORKED OFF IN THE MORE SEVERELY DEPRESSED OFFICE AND RETAIL SECTORS APARTMENTS ARE POSITIONED TO OUTPERFORM OTHER PROPERTY TYPES FOR THE NEXT SEVERAL YEARS AND OVERALL MAY WELL PROVIDE THE HIGHEST RETURN ON REAL ESTATE INVESTMENT THIS DECADE CONCLUDES A REPORT TO BE RELEASED NEXT MONTH BY ERNST & YOUNG AND THE NATIONAL MULTI HOUSING COUNCIL NATIONWIDE CONSTRUCTION FIGURES HAVE YET TO REGISTER ANY SIGNIFICANT TURNAROUND CONSTRUCTION STARTS OF NEW APARTMENTS IN BUILDINGS WITH FIVE OR MORE UNITS PLUNGED FROM 576100 IN 1985 TO A POSTWAR LOW OF 137900 IN 1991 BEFORE EDGING UP TO 139000 LAST YEAR ACCORDING TO THE US BUREAU OF CENSUS BUT REAL ESTATE EXPERTS POINT OUT THAT HOUSEHOLDS HAVE BEEN FORMING FAR FASTER THAN APARTMENTS HAVE BEEN BUILT SETTING THE STAGE FOR INCREASING RENTS AND VALUES AND THE EVENTUAL PICKUP IN NEW CONSTRUCTION NEW MULTIFAMILY STARTS DROPPED BELOW HOUSEHOLD FORMATIONS IN THE SUMMER OF 1987 AND HAVE REMAINED SO EXCEPT FOR A BRIEF PERIOD IN 1990 SAID THE ERNST & YOUNG REPORT MORE RECENTLY THE GAP HAS WIDENED PRECIPITOUSLY AND IN THE SECOND QUARTER OF 1992 HOUSEHOLD FORMATIONS WERE MORE THAN TRIPLE MULTIFAMILY STARTS NEW YORKBASED RELATED COMPANIES LP HOPES TO ADD ABOUT 20000 UNITS THIS YEAR TO THE 85200 UNITS IT ALREADY OWNS THERE'S NO QUESTION THAT WITH THE LACK OF NEW CONSTRUCTION VACANCY RATES ARE GOING DOWN AND APARTMENT RENTS ARE GOING UP SAID STEPHEN ROSS THE COMPANY'S PRESIDENT NATIONAL PROPERTY INVESTORS OF MANHASSET NY PURCHASED ABOUT 10000 UNITS LAST YEAR IN THE SOUTHEAST AND MIDDLE ATLANTIC STATES FOR ONE OF THE FIRST TIMES I CAN REMEMBER THERE IS A POSITIVE SPREAD BETWEEN THE COST OF MONEY AND THE RETURN ON THE INVESTMENT SAID THE COMPANY'S PRESIDENT MICHAEL ASHNER THE NEW CONSTRUCTION THUS FAR HAS BEEN CONCENTRATED IN THE SOUTHWEST WHERE DEVELOPERS REPORT THAT GROWING DEMAND FOR RENTAL HOUSING PARTICULARLY UPSCALE APARTMENTS HAS EXHAUSTED THE INVENTORY NEW BUILDING IS MORE DEMAND DRIVEN IN CONTRAST TO THE TAXDRIVEN DEALS OF THE 1980S SAID JONATHAN KEMPNER PRESIDENT OF THE NATIONAL MULTI HOUSING COUNCIL EMBREY PARTNERS LTD A SAN ANTONIO DEVELOPER STOPPED BUILDING IN TEXAS IN THE MID1980S WHEN VACANCY RATES IN SAN ANTONIO ROSE TO 13 AND RENTS PLUNGED 30 FROM THEIR PEAK LAST YEAR WITH VACANCIES DOWN TO ABOUT 4 AND RENTS MOVING UP AT 7 TO 8 A YEAR THE COMPANY BROKE GROUND ON ABOUT 300 UNITS IN SAN ANTONIO AND 650 IN AUSTIN EMBREY IS TARGETING THE UPSCALE MARKET THE STRONGEST APARTMENT SECTOR IN MUCH OF THE NATION THE BABY BOOM GENERATION HAS GROWN UP WE'RE BUILDING LARGER UNITS PLUSHER UNITS SAID WALTER EMBREY JR FOUNDER AND PRESIDENT THEY'RE ALL SPECULATIVE BUT THE MARKET IS SO STRONG YOU'VE GOT A TREMENDOUS AMOUNT OF PENTUP DEMAND STEPHEN EVANS CHAIRMAN OF SCOTTSDALE ARIZ DEVELOPER EVANS WITHYCOMBE INC SAID THAT HIGHEND APARTMENTS ARE NOW WORTH BUILDING IN PHOENIX'S BEST NEIGHBORHOODS LIKE MANY DEVELOPERS HE SAID THAT THE LACK OF CONSTRUCTION LENDERS IS RESTRICTING BUILDING IN THE ENTIRE MARKET LOCAL BANKS ARE UNWILLING TO MAKE CONSTRUCTION LOANS FOR LESS THAN 105 WHILE THEY WILL FINANCE THE PURCHASE OF EXISING PRODUCT AT 9 HE SAID A LOT OF INSTITUTIONS HAVE GOTTEN BURNED ON NEW DEVELOPMENT HE EXPLAINED SO THEY WANT TO BE REWARDED HANDSOMELY WHEN THEY DO WE EXPECT LENDING TO STAY CONSTRICTED FOR THE NEXT COUPLE OF YEARS FOR THAT REASON SAID MR EMBREY I DON'T EXPECT TO SEE ANY RAMPANT BUILDING IN THIS INDUSTRY 9303300158 930330 INTERNATIONAL SCANDAL IN JAPAN IS SHEDDING LIGHT ON CLUBBY CONSTRUCTION INDUSTRY BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AMERICANS HAVE LONG COMPLAINED THAT JAPAN'S HUGE PUBLIC WORKS BUDGET IS OFFLIMITS TO OUTSIDERS THAT POWERFUL POLITICIANS TREAT THE MONEY AS PRIVATE BOOTY TO BE DOLED OUT IN BACK ROOMS TO FAVORED FRIENDS NOW THERE MAY BE A WEALTH OF NEW EVIDENCE TO MAKE THAT CASE TOKYO PROSECUTORS DIGGING THROUGH THE FINANCES OF DISGRACED POLITICAL BOSS SHIN KANEMARU HAVE UNCOVERED WHAT APPEARS TO BE EVIDENCE OF JAPAN'S LARGEST CONSTRUCTION COMPANIES PAYING MR KANEMARU TO GET PLUM GOVERNMENT CONTRACTS PROSECUTORS LAST WEEK RAIDED THE OFFICES OF ABOUT 20 MAJOR JAPANESE CONSTRUCTION COMPANIES SEARCHING FOR RECORDS OF SUSPECTED PAYOFFS MR KANEMARU WHO UNTIL LAST YEAR WAS CONSIDERED JAPAN'S MOST POWERFUL POLITICIAN WAS ARRESTED MARCH 6 FOR ALLEGEDLY EVADING MILLIONS OF DOLLARS IN TAXES HE WAS INDICTED ON NEW CHARGES OVER THE WEEKEND FREED ON BAIL THE 78YEAROLD MR KANEMARU FACES TRIAL ON TWO COUNTS OF TAX FRAUD FOR FAILING TO REPORT POLITICAL DONATIONS HE TOOK FROM CONSTRUCTION AND BUS COMPANIES BETWEEN 1987 AND 1989 EVADING A TOTAL OF 88 MILLION IN INCOME TAXES IN GENERAL THE KANEMARU AFFAIR SUGGESTS THAT THE SYSTEM IS BASICALLY RIGGED SAID A US GOVERNMENT OFFICIAL THE REVELATIONS COME AT A PARTICULARLY INOPPORTUNE TIME FOR THE JAPANESE GOVERNMENT PRESIDENT CLINTON LAST WEEK BLASTED JAPAN FOR ITS TRADE PRACTICES AND IMPLIED THAT FOREIGNERS HAVE TROUBLE WINNING BUSINESS IN JAPAN BECAUSE DOMESTIC COMPANIES ARE FAVORED ON THURSDAY JAPANESE NEGOTIATORS ARE SCHEDULED TO VISIT WASHINGTON TO CONTINUE TALKS ON MAKING JAPAN'S CONSTRUCTION MARKET MORE TRANSPARENT FOR FOREIGNERS THAT IS MAKING THE CRITERIA AND PROCESS BY WHICH CONTRACTS ARE GRANTED MORE UNDERSTANDABLE WE'D LIKE TO SEE US COMPANIES EVENTUALLY TAKING A BIGGER ROLE IN JAPANESE CONSTRUCTION PROJECTS SAID JOHN DICKISON JAPAN GENERAL MANAGER FOR THE CHICAGOBASED SCHAL BOVIS INC CONSTRUCTION COMPANY BUT GIVEN THE NONTRANSPARENCY AND OLDBOY NETWORKS IT'S NOT PRACTICAL TO PLAY THAT GAME AT THE MOMENT A JAPANESE GOVERNMENT OFFICIAL RESPONDED THAT OUR DOMESTIC ISSUE THE SCANDAL IS NOT RELATED TO THE QUESTION OF US COMPANIES GETTING MORE CONSTRUCTION BUSINESS IN JAPAN JAPANESE OFFICIALS HAVE ALSO ARGUED THAT US COMPANIES DON'T HAVE ENOUGH PERSONNEL OR EXPERTISE IN JAPAN TO EXPAND THEIR MARKET SHARE NONETHELESS JAPAN'S CONSTRUCTION MINISTER LAST WEEK RENEWED SUPPORT FOR AN ONGOING REVIEW OF THE BIDDING PROCEDURES USED FOR GOVERNMENT PROJECTS IT IS NECESSARY TO CHANGE THE SYSTEM THE NIHON KEIZAI SHIMBUN DECLARED IN AN EDITORIAL THE OTHER DAY THE FIRST STEP IS TO MAKE THE BIDDING SYSTEM MORE COMPETITIVE THE ISSUE MATTERS EVEN MORE NOW BECAUSE JAPANESE POLITICIANS ARE CRAFTING WHAT COULD BECOME THE COUNTRY'S LARGESTEVER PUBLICWORKS SPENDING PACKAGE ONE THAT ACCORDING TO SOME REPORTS COULD EXCEED 100 BILLION THE US AND JAPAN REACHED AN AGREEMENT ON GIVING US COMPANIES GREATER ACCESS TO THE JAPANESE CONSTRUCTION BUSINESS IN 1988 OVER THE PAST FIVE YEARS US COMPANIES HAVE WON SEVERAL HUNDRED MILLION DOLLARS IN CONSTRUCTION CONTRACTS IN JAPAN MAINLY AS JUNIOR JOINTVENTURE PARTNERS US NEGOTIATORS THIS WEEK WILL ASK THAT ADDITIONAL PROJECTS BE SET ASIDE FOR POSSIBLE FOREIGN INVOLVEMENT AND THAT JAPAN'S RULES FOR AWARDING CONTRACTS BE MORE CLEAR THESE EFFORTS NOTWITHSTANDING US COMPANIES SAY THEY HAVE BEEN AWARDED ONLY 2 OF THE VALUE OF THE SPECIALLY DESIGNATED PROJECTS A REPORT PREPARED BY THE AMERICAN CHAMBER OF COMMERCE IN JAPAN VIEWS MUCH OF THE WORK AS TOKENISM THE REPORT ALSO CLAIMS THAT GOVERNMENT OFFICIALS GIVE ADVANCE INFORMATION ON PROJECTS TO FAVORED JAPANESE CONTRACTORS ONE OF THE MAIN REASONS BEHIND THE PREVAILING NEGATIVE ATTITUDE TOWARD US COMPANIES THE REPORT SAYS IS THE APPREHENSION THAT US FIRMS WILL DISRUPT THEIR ESTABLISHED CLOSEDDOOR PROCUREMENT POLICIES UNTIL RECENTLY AT LEAST A MAJOR CRITERION FOR GETTING BUSINESS APPARENTLY WAS CULTIVATING MR KANEMARU RECENT JAPANESE PRESS REPORTS HAVE QUOTED PROSECUTION SOURCES SAYING THAT CONTRACTORS FROM MR KANEMARU'S HOME DISTRICT MADE REGULAR FIVE MILLION YEN 42918 DONATIONS TO THE POLITICIAN EXCEEDING THE 15 MILLION YEN ANNUAL CAMPAIGN CONTRIBUTION LIMIT SOMETIMES ACCORDING TO THE REPORTS MR KANEMARU'S OFFICE REFERRED TO THE MONEY AS ANNUAL MEMBERSHIP FEES IN STUDY GROUPS THE MAINICHI SHIMBUN NEWSPAPER SAID IN ONE REPORT THAT CONSTRUCTION COMPANIES OFTEN PAID MR KANEMARU COMMISSIONS OF 2 TO 3 OF THE VALUE OF PUBLIC WORKS CONTRACTS AWARDED TO THE FIRMS UNLESS WE WERE MEMBERS OF THE ORGANIZATION ONE JAPANESE EXECUTIVE TOLD THE ASAHI SHIMBUN WE WOULD HARDLY EVER HAVE RECEIVED ORDERS 9303300157 930330 CIRCLE K REACHES AGREEMENT TO SETTLE CONTAMINATION CASE PHOENIX CIRCLE K CORP SAID IT REACHED A 30 MILLION AGREEMENT WITH 29 STATES AND THE FEDERAL GOVERNMENT TO SETTLE ITS FINANCIAL RESPONSIBILITY FOR ENVIRONMENTAL CLEANUP COSTS AT CLOSED GASOLINE STATION SITES THE AGREEMENT SHOULD REMOVE THE LAST POTENTIAL OBSTACLE TO THE COMPANY'S EMERGENCE FROM THREE YEARS OF BANKRUPTCYLAW PROCEEDINGS CIRCLE K SAID IT WILL PAY THE MONEY DURING THE NEXT SIX YEARS WITH 13 MILLION COMING OUT OF FUNDS SLATED TO PAY CLAIMS OF UNSECURED CREDITORS THE FEDERAL GOVERNMENT AND THE 29 STATES INVOLVED IN THE AGREEMENT WILL DIVIDE THE PROCEEDS USING THE FUNDS TO TEST FOR AND CLEAN UP GROUNDWATER CONTAMINATION AT SOME 1100 GASOLINE STATION SITES CIRCLE K CLOSED AND WALKED AWAY FROM DURING ITS BANKRUPTCY PROCEEDINGS AND 1200 MORE SITES THE COMPANY OPERATED AT SOME TIME BEFORE ITS BANKRUPTCYLAW FILING STATE TRUST FUNDS FINANCED BY TAXPAYERS AND THE GASOLINE INDUSTRY ALSO WILL BE TAPPED TO COVER MUCH OF THE CLEANUP COSTS THE JUSTICE DEPARTMENT SAID STATE ATTORNEYS WHO HAD ARGUED IN COURT THAT CLEANUP COSTS COULD TOP 100 MILLION SAID THEY BELIEVE GROUNDWATER AT 450 OR MORE OF THE ABANDONED SITES IS CONTAMINATED AS A RESULT OF LEAKS FROM UNDERGROUND GASOLINE STORAGE TANKS THE POTENTIAL LIABILITY HAD POSED A THREAT TO CIRCLE K'S REORGANIZATION PLAN WHICH CALLS FOR IT TO BE ACQUIRED FOR 3995 MILLION BY A UNIT OF INVESTCORP INTERNATIONAL INC A BAHRAINBASED HOLDING COMPANY UNDER THE PLAN INVESTCORP COULD HAVE WITHDRAWN ITS OFFER IF CIRCLE K'S LIABILITY FOR THE CLEANUP SITES HAD EXCEEDED 45 MILLION CIRCLE K SAID IT NOW EXPECTS CONFIRMATION OF ITS REORGANIZATION PLAN WITHIN TWO WEEKS AND EXPECTS INVESTCORP TO CONCLUDE THE ACQUISITION IN LATE APRIL OR EARLY MAY CONFIRMATION HEARINGS FOR THE PLAN ARE SCHEDULED TO BEGIN APRIL 7 9303300156 930330 MARKETING & MEDIA MURDOCH TAKES CONTROL OF POST NAMES NEW EDITOR BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RUPERT MURDOCH TOOK CONTROL OF THE NEW YORK POST BUT FAILED TO CONVINCE SOME ANALYSTS HE IS DOING THE RIGHT THING A FEDERAL BANKRUPTCY COURT JUDGE ACCEPTED A PLAN UNDER WHICH MR MURDOCH CHAIRMAN OF MEDIA CONCERN NEWS CORP TOOK MANAGEMENT CONTROL OF THE TABLOID NEWSPAPER FROM COURTDESIGNATED OWNER ABRAHAM HIRSCHFELD THE POST WILL NOW BE RUN BY A NEWS CORP SUBSIDIARY WHILE MR MURDOCH NEGOTIATES WITH UNION WORKERS AND FEDERAL REGULATORS TO BUY BACK THE POST SPIRITS WERE HIGH AT THE PAPER AFTER A NEWSROOM APPEARANCE BY MR MURDOCH WHO OWNED THE PAPER FROM 1976 TO 1988 BUT THEY SLUMPED WHEN NEWS SPREAD THAT POST EDITOR PETE HAMILL WOULD BE REPLACED BY KEN CHANDLER THE EXECUTIVE PRODUCER OF FOX BROADCASTING'S A CURRENT AFFAIR MR CHANDLER HAS WORKED AS EDITOR IN CHIEF OF NEWS CORP'S BOSTON HERALD AND AT THE POST DURING MR MURDOCH'S EARLIER TENURE MR MURDOCH ALSO NAMED PATRICK PURCELL CHIEF EXECUTIVE OFFICER OF NEWS CORP'S NEWS AMERICA'S PUBLISHING UNIT AS THE POST'S NEW PUBLISHER MR PURCELL WILL REMAIN PUBLISHER AND PRESIDENT OF THE BOSTON HERALD UNDER TERMS OF THE MANAGEMENT CONTRACT MR MURDOCH WILL OPERATE THE POST FOR AT LEAST 60 DAYS COVERING ALL OF ITS OPERATING EXPENSES WHICH ARE ESTIMATED TO BE RUNNING AS MUCH AS 300000 A WEEK AS MR MURDOCH NEGOTIATES WITH THE PAPER'S UNIONS AND CREDITORS HE MUST ALSO SEEK A WAIVER FROM FEDERAL COMMUNICATIONS COMMISSION REGULATIONS THAT BAR OWNERSHIP OF BOTH A NEWSPAPER AND TELEVISION STATION IN THE SAME MARKET MR MURDOCH ACQUIRED NEW YORK'S WNYWTV IN 1986 AND WAS FORCED TO SELL THE POST TWO YEARS LATER 9303300155 930330 CREDIT RATINGS AMERICAN MEDICAL HOLDINGS INC NEW YORK STANDARD & POOR'S CORP SAID IT RAISED THE RATINGS ON AMERICAN MEDICAL INTERNATIONAL INC'S SENIOR DEBT TO DOUBLEBMINUS FROM SINGLEBPLUS AND SUBORDINATED DEBT TO SINGLEB FROM SINGLEBMINUS THE RATINGS AGENCY ALSO SAID IT RAISED ITS RATINGS ON AMERICAN MEDICAL INTERNATIONAL NV'S DEBT GUARANTEED BY AMERICAN MEDICAL INTERNATIONAL TO DOUBLEBMINUS FROM SINGLEBPLUS A TOTAL OF ABOUT 11 BILLION OF DEBT IS AFFECTED S&P CITED THE COMPANY'S SALE OF 100 MILLION OF PUBLIC DEBT FOUR HOSPITALS VALUED AT 100 MILLION AND SECURITIES VALUED AT 153 MILLION FOR THE UPGRADE IT ADDED THAT THE 34 HOSPITALS AMERICAN MEDICAL CONTINUES TO OPERATE ARE GENERALLY WELL SITUATED IN THEIR MARKETS BUT S&P SAID THE COMPANY'S ABILITY TO PROVIDE CAPITAL IS LIMITED UNDER LOAN AGREEMENTS AMERICAN MEDICAL INTERNATIONAL IS A UNIT OF AMERICAN MEDICAL HOLDINGS INC WHICH TOOK THE COMPANY PRIVATE IN A 1989 LEVERAGED BUYOUT FOOD LION INC SALISBURY NC MOODY'S INVESTORS SERVICE INC LOWERED THIS SUPERMARKET CHAIN'S SENIOR LONGTERM DEBT RATING PREDICTING THAT IT WON'T RECOVER ITS SALES AND EARNINGS MOMENTUM THE RATING AGENCY CITED A NEGATIVE NOVEMBER 1992 STORY ON THE TELEVISON NEWS PROGRAM PRIMETIME LIVE KEEN COMPETITION AND LOW PRICE INFLATION FOR FOOD MOODY'S DOWNGRADED THE COMPANY'S MEDIUMTERM NOTES TO SINGLEA2 FROM SINGLEA1 AND A 350 MILLION SHELF REGISTRATION FOR DEBT SECURITIES TO PSINGLEA2 FROM PSINGLEA1 THE COMPANY SAID 150 MILLION OF DEBT IS AFFECTED PAM STUBING A VICE PRESIDENT AT MOODY'S SAID STIFF COMPETITION HAS PROMPTED FOOD LION TO ENGAGE INCREASINGLY IN DEFENSIVE EXPANSION OPENING STORES NEAR ITS OWN EXISTING STORES IN ANTICIPATION OF COMPETITORS MOVING IN MOODY'S SAID FOOD LION HAS HAD TO PARE BACK ITS ONCEAGGRESSIVE CAPITAL EXPANSION PROGRAM AND CUT FUTURE CAPITAL SPENDING AND ITS DIVIDEND PAYOUT IN ORDER TO BOLSTER FUTURE CASH FLOWS AND TO MAINTAIN A RELATIVELY CONSERVATIVE BALANCE SHEET THE AGENCY ADDED HOWEVER A SWIFT RECOVERY ONCE ANTICIPATED BY THE RATING AGENCY ISN'T HAPPENING AND FURTHER PRESSURES ON EARNINGS COULD OCCUR MICHAEL MOZINGO A FOOD LION SPOKESMAN SAID WE STILL HAVE A VERY GOOD RATING A LOT OF SUPERMARKETS WOULD LIKE TO HAVE AN A2 RATING ROHR INC CHULA VISTA CALIF STANDARD & POOR'S CORP LOWERED ITS RATINGS ON ROHR'S SUBORDINATED DEBT TO SINGLEB FROM DOUBLEBMINUS ABOUT 265 MILLION OF DEBT IS AFFECTED THE IMPLIED SENIOR RATING IS DOUBLEBMINUS S&P SAID THE RATINGS AGENCY SAID THE DOWNGRADE REFLECTS ROHR'S DETERIORATING FINANCIAL PROFILE FROM ALREADY SUBPAR LEVELS AND VERY WEAK INTERMEDIATETERM FUNDAMENTALS FOR COMMERCIAL AIRCRAFT ORIGINAL EQUIPMENT THE FIRM'S CORE MARKET ROHR MAKES AIRCRAFT ENGINERELATED PRODUCTS INCLUDING ENGINE HOUSINGS THRUST REVERSERS AND PYLONS A ROHR SPOKESMAN SAID THAT NATURALLY WE ARE DISAPPOINTED BY THE DOWNGRADE BUT WE DO NOT SEE IT AS A SEVERE IMPEDIMENT TO OUR ABILITY TO SECURE ADDITIONAL FINANCINGS AS REQUIRED S&P SAID THAT THE ANTICIPATED GRADUAL IMPROVEMENTS IN ROHR'S PROFITABILITY HAVEN'T YET BEEN REALIZED DESPITE COST CUTS AND RESTRUCTURING ACTIONS AND THAT IT WILL BE DIFFICULT FOR ROHR TO IMPROVE RESULTS MATERIALLY OVER THE NEXT FEW YEARS BECAUSE OF THE WEAK COMMERCIAL AEROSPACE MARKET OVER THE LONG TERM THE MARKET SHOULD RECOVER AND ROHR IS WELL POSITIONED TO BENEFIT FROM A MUCH IMPROVED ENVIRONMENT S&P SAID HOWEVER THE COMPANY'S FINANCIAL FLEXIBILITY IS LIMITED ROHR HAD SUBSTANTIALLY DRAWN UPON AVAILABLE COMMITTED BANK FACILITIES AT JAN 31 OVERALL BORROWINGS ROSE IN THE FIRST HALF FROM ALREADY AGGRESSIVE LEVELS THE CURRENT DEBTTOCAPITAL RATIO IS OVER 60 AND FUNDS FROM OPERATIONS COMPARED WITH TOTAL DEBT IS UNDER 10 SYSCO CORP HOUSTON MOODY'S INVESTORS SERVICE INC SAID IT RAISED ITS RATING ON INDUSTRIAL REVENUE BONDS GUARANTEED BY THIS FOOD DISTRIBUTION COMPANY TO SINGLEA1 FROM SINGLEA2 AND ON THE COMPANY'S CONVERTIBLE SUBORDINATED LIQUID OPTION YIELD NOTES TO SINGLEA2 FROM SINGLEA3 THE RATINGS AGENCY CITED THE COMPANY'S REINVESTMENT IN ITS MARKETING AND DISTRIBUTION NETWORK IMPROVED OPERATING EFFICIENCIES AND INCREASING PENETRATION OF ITS CUSTOMER BASE MOODY'S SAID IT EXPECTS SYSCO TO GENERATE INCREASING CASH FLOW AND IMPROVE ITS DEBT PROTECTION 9303300154 930330 INTERNATIONAL CREDIT LYONNAIS POSTS 1992 DEFICIT ON BIG LOAN LOSSES BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL PARIS CREDIT LYONNAIS PLUNGED DEEPLY INTO THE RED IN 1992 SLASHING ITS DIVIDEND 57 AFTER CHALKING UP MASSIVE LOSSES DUE TO ITS INVOLVEMENT WITH ITALIAN FINANCIER GIANCARLO PARRETTI AND METROGOLDWYNMAYER INC REFLECTING THE EFFECTS OF A SLUMP IN THE FRENCH REAL ESTATE MARKET AND HEAVY LOSSES ON LOANS DUE TO FRANCE'S ECONOMIC SLOWDOWN THE RESULT WAS ONE OF THE WORST IN DECADES AT THE FRENCH STATEOWNED BANK ALTHOUGH IT WAS EXPECTED BY THE MARKET ALTOGETHER CREDIT LYONNAIS SAID IT HAD BEEN FORCED TO SET ASIDE A TOTAL OF 147 BILLION FRENCH FRANCS 264 BILLION IN PROVISIONS FOR LOAN LOSSES LAST YEAR UP FROM 96 BILLION FRANCS IN 1991 AFTER TAX AND MINORITY INTERESTS THE BANK REPORTED A LOSS OF 18 BILLION FRANCS COMPARED WITH A PROFIT OF 32 BILLION FRANCS IN 1991 IT WAS THE FIRST LOSS AT THE BANK SINCE 1974 AND ONLY THE FOURTH IN ITS 130YEAR HISTORY THE DIVIDEND WAS CUT TO 10 FRANCS FROM 23 FRANCS IN 1991 AT A NEWS CONFERENCE CHAIRMAN JEANYVES HABERER SAID THE BANK IS ANALYZING THE LOSS IN ALL ITS CONSEQUENCES HOWEVER HE DECLINED TO GO INTO DETAIL ABOUT THE BANK'S PLANS BEYOND AFFIRMING THAT CREDIT LYONNAIS HAS NOW COMPLETED ITS STRATEGIC DRIVE FOR BANKING ACQUISITIONS IN EUROPE AND TIGHTENED UP ITS PROCEDURES FOR GRANTING AND ADMINISTERING LOANS A FORMER CIVIL SERVANT TURNED BANKER MR HABERER WAS APPOINTED TO HIS PRESENT POST BY FRANCE'S OUTGOING SOCIALIST GOVERNMENT IN 1988 SINCE THEN HE HAS PRESIDED OVER A DRAMATIC PUSH BY THE BANK INTO NEW GEOGRAPHICAL AND BUSINESS AREAS IN 1991 CREDIT LYONNAIS OVERTOOK BANQUE NATIONALE DE PARIS TO BECOME FRANCE'S BIGGEST COMMERCIAL BANK LAST YEAR IT ADDED GERMANY'S UNPROFITABLE BFG BANK TO A PORTFOLIO OF SUBSIDIARIES FANNED OUT ACROSS EUROPE AND TOOK STRATEGIC STAKES IN TWO LARGE FRENCH COMPANIES OIL PRODUCER TOTAL SA AND AERONAUTICAL MANUFACTURER AEROSPATIALE BUT THE BANK'S STRATEGY HAS PROVED HIGHLY CONTROVERSIAL AND MR HABERER HAS REPEATEDLY BEEN ATTACKED BY RIGHTWING POLITICIANS ANNOUNCEMENT OF LAST YEAR'S LOSSES COMING IN THE WAKE OF A SWEEPING VICTORY BY FRANCE'S CONSERVATIVE RIGHT IN PARLIAMENTARY ELECTIONS OVER THE WEEKEND REINFORCED SPECULATION THAT MR HABERER WILL FOLLOW HIS THREE PREDECESSORS IN BEING EJECTED FROM HIS JOB ONCE A NEW GOVERNMENT IS FORMED BUT IN REMARKS YESTERDAY MR HABERER SAID CREDIT LYONNAIS IS IN THE MIDDLE OF THE RIVERCROSSING I'M NOT GOING TO LEAVE IT IN THE MIDDLE OF THE RIVER CREDIT LYONNAIS SAID ABOUT 40 OF THE LOANLOSS PROVISIONS WERE RELATED TO MGM TO MR PARRETTI'S COMFINANCE GROUP AND TO TWO OTHER COMPANIES SASEA AND SCOTTI IN WHICH AN ASSOCIATE OF MR PARRETTI'S FIORIO FIORINI HAD BEEN INVOLVED MR PARRETTI ACQUIRED MGM IN 1990 WITH SUBSTANTIAL LOANS FROM CREDIT LYONNAIS HE WAS SUBSEQUENTLY OUSTED BY THE BANK CREDIT LYONNAIS REFUSED TO GIVE ANY BREAKDOWN OF THE PROVISIONS FOR LOANS TO MGM WHICH IT NOW RUNS HOWEVER IT REVEALED THAT IT ENDED 1992 WITH A TOTAL OF 187 BILLION FRANCS IN LOANS TO THE MOVIE INDUSTRY INCLUDING MGM PROVISIONS FOR LOSSES ON THESE LOANS MADE IN 1992 AND PREVIOUS YEARS AMOUNTED TO 454 BILLION FRANCS IN 1992 CREDIT LYONNAIS MADE PROVISIONS TOTALING THREE BILLION FRANCS FOR LOANS TO SASEA AND ITS AFFILIATES 15 BILLION FRANCS FOR LOANS TO SCOTTI AND 300 MILLION FRANCS FOR LOANS TO MR PARRETTI'S COMFINANCE BY DOING SO THE BANK SAID IT HAD FULLY COVERED ALL DOUBTFUL LOANS TO THESE BORROWERS RESIDUAL LOANS TOTALING 23 BILLION FRANCS WERE SECURED AGAINST ASSETS OR GUARANTEED BY THIRD PARTIES CREDIT LYONNAIS SAID FRANCOIS GILLE ONE OF TWO GENERAL MANAGERS AT CREDIT LYONNAIS SAID THE BANK IS TAKING LEGAL RECOURSE TO RECOVER AS MUCH AS POSSIBLE OF THE OUTSTANDING LOANS MEANWHILE HE SAID CREDIT LYONNAIS HAS NO PLANS TO SELL MGM SELLING IS NOT THE PROGRAM OF THE DAY HE SAID INSTEAD THE PROBLEM IS TO STABILIZE AND RECONSTRUCT THE AILING MOVIE MAKER 9303300153 930330 BUSINESS & RACE BY LEON E WYNTER ESTABLISHED COMPANIES ARE JOINING FORCES WITH SMALL AND MINORITY BUSINESSES THAT UNDERSTAND NICHE MARKETS AND TWO RECENT PRODUCT ANNOUNCEMENTS SHOW THESE STRATEGIC LINKS ARE PAYING OFF MILESTONE MEDIA NEW YORK LAST MONTH SHIPPED THE FIRST TWO TITLES OF A NEW LINE OF COMIC BOOKS FEATURING BLACK SUPERHEROES UNDER A PRODUCTION AND DISTRIBUTION AGREEMENT WITH TIME WARNER'S DC COMICS UNIT ALSO LAST MONTH OLMEC TOYS NEW YORK AND HASBRO'S PLAYSKOOL UNIT INTRODUCED KIDS OF COLOR A LINE OF TODDLER TOYS WITH AFROCENTRIC DESIGN THE PARTNERSHIPS GREW OUT OF DECISIONS BY THE BIG COMPANIES TO LOOK OUTSIDE THEIR CORPORATE CULTURES TO ADD ETHNIC DIVERSITY TO THEIR PRODUCT LINES SIMPLY HIRING BLACK ARTISTS AND EDITORS WOULDN'T ACHIEVE THE SAME RESULT SAYS PAUL LEVITZ PUBLISHER OF DC COMICS WHICH WILL DISTRIBUTE THE MILESTONEPRODUCED COMIC BOOKS BY REACHING TO AN OUTSIDE STRUCTURE YOU CAN TAP INTO A PASSION THAT YOU COULDN'T PUT TOGETHER ON DEMAND MR LEVITZ ADDS FOR OLMEC A BLACKOWNED DOLL MAKER THE LINK WITH HASBRO BEGAN AS A MATTER OF SURVIVAL IN 1990 WHEN OLMEC PRESIDENT YLA EASON REALIZED MATTEL WAS ENTERING HER MARKET IN A BIG WAY SHE PERSUADED HASBRO TO INVEST IN HER COMPANY HASBRO VICE CHAIRMAN BARRY ALPERIN SAYS THE COMPANY WANTED TO TEST OLMEC'S BELIEF THAT ETHNICALLY CORRECT PRODUCTS AIMED AT THESE MARKETS WOULD DO VERY WELL WHEN PLAYSKOOL BEGAN CONSIDERING THE ETHNIC MARKET LAST YEAR IT FOUND OLMEC WAS DEVELOPING IDEAS FOR PRESCHOOL PRODUCTS AND DECIDED TO PURSUE THAT APPROACH THE RESULTING KIDS OF COLOR LINE MADE UP OF BLANKETS RATTLES DOLLS AND STUFFED ANIMALS ALL MADE OF KENTE CLOTH A TRADITIONAL AFRICAN MATERIAL CARRY THE FAMILIAR PLAYSKOOL LOGO AND THE OLMEC NAME IF HER THEORY IS RIGHT THAT THE SEPARATE MARKET EXISTS MR ALPERIN SAYS OF MS EASON SHE'LL BE BETTER ABLE TO DESIGN PRODUCT FOR THAT MARKETPLACE THAN WE WILL TO REACH OUT TO BLACK CONSUMERS HALLMARK GOT IN TOUCH WITH ITS OWN DIVERSITY THE NO 1 GREETINGCARD COMPANY RECENTLY DOUBLED ITS OFFERINGS TARGETED AT BLACK BUYERS TO 5 OF ITS LINE TO GIVE THE CARDS MORE BLACK CULTURAL SENSITIVITY HALLMARK IS ADJUSTING ITS OWN CULTURE TO INCLUDE MORE INPUT FROM AFRICANAMERICAN EMPLOYEES HALLMARK INTRODUCED ITS FIRST CARDS AIMED AT BLACKS IN THE EARLY 1960S BUT UNTIL RECENTLY SUCH CARDS WERE SPARSELY REPRESENTED IN THE COMPANY'S HUGE LINE RESEARCH SHOWED BLACK BUYERS RESPECTED THE HALLMARK NAME AND WANTED MORE AND BETTER CARDS WITH BLACK THEMES SAYS SUSAN WILBORN A HALLMARK BUSINESS MANAGER SO TWO YEARS AGO THE COMPANY LAUNCHED ITS MAHOGANY LINE OF BLACKORIENTED CARDS TO ACCOUNT FOR SUCH NUANCES AS A PREFERENCE FOR MAMA OR DADDY INSTEAD OF MOTHER OR FATHER HALLMARK CALLED ON ITS BLACK DESIGN AND MARKETING STAFFERS IT ALSO SOLICITED OPINIONS FROM BLACK EMPLOYEES IN OTHER DEPARTMENTS INCLUDING DATA PROCESSING WE PULLED DIFFERENT WORK TEAMS TOGETHER THAT MIGHT NOT HAVE WORKED TOGETHER BEFORE AND I HEAVILY RELIED ON THE PROGRAM'S KEY BLACK LEADERS TO TELL ME WHAT WAS RIGHT OR NOT RIGHT WITH THIS PRODUCT BECAUSE I AS A CAUCASIAN CAN'T SAY WHAT'S APPROPRIATE MS WILBORN SAYS NEW JERSEY THINKS IT HAS A BETTER WAY TO MAKE CASINOS MEET THE SPIRIT IF NOT THE LETTER OF A MINORITY BUSINESS SETASIDE PROGRAM REGULATIONS PROPOSED THIS MONTH BY THE STATE CASINO CONTROL COMMISSION WOULD ENCOURAGE ATLANTIC CITY CASINOS TO VIEW BUSINESSES OWNED BY MINORITY AND WOMEN ENTREPRENEURS AS PARTNERS INSTEAD OF DEPENDENTS IN 1981 THE CASINOS VOLUNTEERED TO BUY 15 OF THEIR GOODS AND SERES FROM MINORITYOWNED AND WOMENOWNED BUSINESSES THEY NEVER CAME CLOSE TO THE GOAL A 1987 LAW PHASED IN REQUIREMENTS THAT ROSE TO 15 BY 1994 WITH STIFF SANCTIONS FOR NONCOMPLIANCE THE CASINOS USUALLY HAVEN'T REACHED THEIR TARGETS BUT SANCTIONS HAVE NEVER BEEN METED OUT IN PART BECAUSE THE LAW ONLY REQUIRED A GOOD FAITH EFFORT TO MEET THE GOALS COMMISSION STAFF HAD BEEN SLOW TO ENFORCE SOMETHING THAT HUNG ON GOOD FAITH' SAYS GUSTAVE THOMAS CHIEF OF AFFIRMATIVE ACTION FOR THE CASINO COMMISSION BECAUSE NO ONE WAS ABLE TO SAY WHAT IT MEANT THE PROPOSED NEW APPROACH FROM A TASK FORCE OF CASINO COMMISSION MINORITY AND WOMEN REPRESENTATIVES IS CALLED THE EQUAL EMPLOYMENT BUSINESS OPPORTUNITY PLAN INDIVIDUAL CASINOS FALLING SHORT OF THE SETASIDE LAW'S NUMERICAL TARGETS WOULD PRESENT THE CASINO COMMISSION WITH PLANS TO HELP MINORITY OR WOMENOWNED BUSINESSES EXPAND SALES WHETHER TO THE CASINOS OR OTHERS IF THE COMMISSION APPROVED A PLAN AND THE CASINO IMPLEMENTED IT SUBJECT TO COMMISSION MONITORING THE CASINO WOULD BE IN COMPLIANCE WITH THE SETASIDE LAW THE COMMISSION WOULD BE ABLE TO IMPOSE FINES OR OTHER SANCTIONS ON CASINOS THAT DON'T LIVE UP TO THEIR PLANS CASINO OFFICIALS SAY THEY EXPECT BETTER RESULTS FROM THE PROGRAM BECAUSE THEY WOULD BE DRAFTING THEIR OWN PLANS RATHER THAN TRYING TO MEET IMPOSED NUMERICAL GOALS MOREOVER INDUSTRY OFFICIALS SAY THEY HAVE GOTTEN THE MESSAGE THAT THE COMMISSION IS MORE SERIOUS ABOUT THE ISSUE THAN IT WAS IN THE LATE '80S MR THOMAS ENVISIONS CASINOS LENDING MANAGERIAL TECHNICAL AND FINANCIAL HELP TO SUPPLIER FIRMS THE COMMISSION IS EXPECTED TO VOTE ON THE PROPOSAL IN MAY FIFTEEN PERCENT OF US PENSION AND ENDOWMENT FUNDS NOW USE MINORITY MONEYMANAGEMENT FIRMS AND AN ADDITIONAL 6 PLAN TO HIRE SUCH FIRMS ACCORDING TO A SURVEY OF MORE THAN 1000 PLANS BY GREENWICH ASSOCIATES A CONSULTING FIRM IN GREENWICH CONN THE MARCH ISSUE OF HISPANIC BUSINESS MAGAZINE LISTS THE 50 RICHEST HISPANICAMERICAN CITIZENS JOSEPH A UNANUE CHIEF EXECUTIVE OF GOYA FOODS SECAUCUS NJ RANKED FIRST WITH A NET WORTH OF 330 MILLION 9303300152 930330 LETTERS TO THE EDITOR POOR KIDS NEED SUMMER JOBS PROGRAM JAMES BOVARD'S BROADSIDE CLINTON'S SUMMER JOBS SHAM EDITORIAL PAGE MARCH 5 MISSED THE POINT ENTIRELY THE PRESIDENT'S PROPOSAL IS FOR ADDITIONAL SUMMER YOUTH JOBS THAT EXPLICITLY AVOID MAKE WORK AND INCLUDE ACADEMIC WORK AND IN HIS REFERENCE TO PUBLIC/PRIVATE VENTURES' RESEARCH MR BOVARD MISSED THE NEWS ENTIRELY AS WELL THAT A SUMMER OF ACADEMIC REMEDIATION CAN IMPROVE THE READING AND MATH TEST SCORES OF KIDS DOING POORLY IN SCHOOL THE YOUNG TEENS IN OUR DEMONSTRATION IMPROVED HALF A GRADE'S WORTH IT'S CERTAINLY NO NEWS THAT ONE SUCCESSFUL SUMMER OF WORK EXPERIENCE AND ACADEMIC ENRICHMENT CANNOT TURN WHOLE LIVES AROUND NO PARENT WHO READS YOUR NEWSPAPER CERTAINLY WOULD EXPECT SUCH MAGIC FOR HIS OWN CHILDREN IN FACT MIDDLECLASS CHILDREN USUALLY BENEFIT FROM A SUCCESSION OF ENRICHMENT EXPERIENCES AFTER SCHOOL WEEKENDS SUMMERS POOR KIDS NEED THE SAME AND THE CLINTON PROPOSAL TAKES A STEP IN THAT IMPORTANT DIRECTION IN SONOMA COUNTY CALIF THE PRIVATE INDUSTRY COUNCIL RUNS A SUMMER JOBS PROGRAM FOR YOUNG PEOPLE MOSTLY AGES 1416 SOME AS OLD AS 21 CALLED THE SUMMER YOUTH CONSERVATION CORPS THE YOUNG PEOPLE WORK OUTDOORS IN CREWS OF 16 FOR EACH TWO ADULT SUPERVISORS BUILDING PARK TRAILS AND BRIDGES PICNIC TABLES AND BENCHES INSTALLING IRRIGATION AND DRAINAGE SYSTEMS IN SCHOOL PLAYGROUNDS REPAIRING AND REFINISHING DILAPIDATED SCHOOL EQUIPMENT AS PROJECTS ARE PLANNED AND CARRIED OUT THE YOUTHS LEARN APPLICABLE MATH SKILLS THE SUCCESS OF THE PROGRAM IS JUDGED BY MEASURABLE POSITIVE GROWTH IN THE YOUNG PEOPLE'S WORK MATURITY AND JOBSITE SKILLS AS AGAINST STANDARDS ESTABLISHED BY THE PRIVATE INDUSTRY COUNCIL WE WORK HARD AND PATIENTLY WITH SOME DIFFICULT YOUNG PEOPLE BUT KIDS WHO SCREW UP BADLY ARE FIRED THERE IS A RECESSION IN SONOMA COUNTY A LOT OF PEOPLE ARE OUT OF WORK FAMILIES ARE STRUGGLING TO SURVIVE LET'S SUPPOSE PRESIDENT CLINTON'S SUMMER JOBS PROGRAM SENDS 1 MILLION TO US THAT WILL CREATE JOBS FOR 500 YOUNG PEOPLE AND 32 ADULTS THIS IS NOT JUST FUN MONEY FOR THE YOUTHS FOR MANY OF THESE YOUTHS' FAMILIES AND THE ADULT SUPERVISORS AS WELL THE INCOME FROM THE SUMMER JOB MAY BE CRUCIAL TO SURVIVAL MR BOVARD'S CLAIM THAT THE PROGRAM IS FRAUDULENT AND SUBVERSIVE IS UNFOUNDED AND UNFAIR AND IMPUGNS THE REPUTATION OF THOUSANDS OF HARDWORKING PEOPLE WHO ADMINISTER A PROGRAM THAT GIVES HELP TO YOUNG PEOPLE WHO NEED IT THE MOST SELECTIVELY CITING OUTDATED AND IN SOME CASES UNRELATED DATA TO MAKE HIS CASE AGAINST THE PROGRAM MR BOVARD FAILS TO REPORT EVIDENCE OF ITS SUCCESS HERE ARE JUST A FEW OF THE MISREPRESENTATIONS THE ONLY SUMMER JOBS PROGRAM FROM 1992 THAT HE CITES AS WASTEFUL WAS NOT A FEDERAL PROGRAM THE SWEAT TEAM IN BRIDGEPORT CONN IS AN ALTERNATIVE DRUG TREATMENT PROGRAM FINANCED ENTIRELY BY THE CITY OF BRIDGEPORT HE CLAIMS THE SUMMER JOBS PROGRAM SABOTAGED THE WORK ETHIC BY CITING A 1969 GENERAL ACCOUNTING OFFICE REPORT HARDLY A CURRENT EXAMPLE THE OTHER WASTEFUL SUMMER JOBS PROGRAMS HE MENTIONS ARE COMPREHENSIVE EMPLOYMENT AND TRAINING ACT PROGRAMS FROM THE LATE 1970S MR BOVARD DID NOT EVEN DISCUSS THE LABOR DEPARTMENT INSPECTOR GENERAL'S REPORT ON THE 1992 SUMMER JOBS PROGRAM WHICH REVIEWED 21 JOB TRAINING PARTNERSHIP ACT SERVICE DELIVERY AREAS SDAS NATIONWIDE MADE UNANNOUNCED VISITS TO MORE THAN 840 WORKSITES AND INTERVIEWED PROGRAM STAFF AND MORE THAN 1200 PARTICIPANTS THE REPORT CONCLUDES THAT WITH FEW EXCEPTIONS THE SDAS MANAGED SUCCESSFUL WORK EXPERIENCE PROGRAMS AND THAT THE PARTICIPANTS WERE PRODUCTIVE INTERESTED AND CLOSELY SUPERVISED 9303300151 930330 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMANY'S PRIVATIZATION AGENCY ADVANCED PLANS TO VAULT ITS AILING EASTERN STEELMAKER EKO STAHL AG TO THE TECHNOLOGICAL FOREFRONT OF THE COUNTRY'S STEEL SECTOR SUBJECT TO GERMAN GOVERNMENT AND EUROPEAN COMMUNITY APPROVAL THE TREUHANDANSTALT CLEARED SPENDING 750 MILLION MARKS 4592 MILLION TO BUILD AN ELECTRIC FURNACE AND ULTRAMODERN THINSTRIPCASTING MILL AT THE EKO COMPLEX THE AGENCY PREVIOUSLY APPROVED 310 MILLION MARKS TO MODERNIZE EKO'S COLDROLLING MILL THE IMPROVEMENTS WOULD TRANSFORM EKO EASTERN GERMANY'S LARGEST STEELMAKER AND THE ECONOMIC LIFELINE FOR 70000 PEOPLE INTO ONE OF THE COUNTRY'S MOST COSTEFFICIENT STEELWORKS BUT THE PROJECT MAY RUN INTO OPPOSITION AT THE EC WHICH IS DEALING WITH A CRISIS OVER STEEL SUBSIDIES EXCESS JOBS AND OVERCAPACITY EVEN THE GERMAN STEEL FEDERATION OPPOSES ANY EKO SUBSIDY FEARING THIS WOULD LEAD TO APPROVAL OF BIG SUBSIDY PROPOSALS BY OTHER EC COUNTRIES JAPANESE INDUSTRIAL SITE SALES LAST YEAR PLUMMETED 29 TO 2469 FROM A YEAR EARLIER THAT LEVEL WAS LAST SEEN IN 198587 THE LATEST DECLINE AMID THE ECONOMY'S CONTRACTION COINCIDED WITH A 61 FALL IN THE INDUSTRIAL AND MINING PRODUCTION INDEX AND A 12 DROP IN CAPITAL SPENDING DECLINES IN INDUSTRIAL SITE SALES HIT DOUBLE DIGITS IN ALL REGIONS OF JAPAN ACQUISITIONS BY FOREIGN BUSINESSES SLUMPED 27 TO 16 INCLUDING 10 BY US COMPANIES LEADERS AT ASIA'S FIRST HUMANRIGHTS CONFERENCE GENERALLY EMBRACED THE VIEW THAT ECONOMIC GROWTH AND COMMUNITY DEVELOPMENT COME BEFORE INDIVIDUAL RIGHTS REPRESENTATIVES OF 49 COUNTRIES ATTENDED THE UNITED NATIONSSPONSORED MEETING IN BANGKOK ONE OF A SERIES TO CULMINATE IN A GLOBAL HUMANRIGHTS GATHERING IN VIENNA IN MAY HUMANRIGHTS GROUPS WELCOMED THE ASIAN FORUM BUT SAID ITS FINAL DECLARATION MAY ONLY PAY LIP SERVICE TO THE ISSUE WHICH IS GAINING PUBLIC SUPPORT IN TANDEM WITH RAPID ECONOMIC AND POLITICAL DEVELOPMENT THE REGION'S LARGE SIZE AND MANY CULTURES MAKE ANY COLLECTIVE AGREEMENT ON HUMAN RIGHTS DIFFICULT TO ACHIEVE MORE THAN A MILLION BANK EMPLOYEES IN INDIA STAGED A ONEDAY STRIKE THAT PARALYZED FINANCIAL TRANSACTIONS NATIONWIDE THE STRIKERS WANT PAY AND PENSION IMPROVEMENTS AND GOVERNMENT ASSURANCE THAT BANKS MOST OF THEM STATEOWNED WON'T BE SOLD TO THE PRIVATE SECTOR INDIA IS TRYING TO OPEN ITS ECONOMY TO FOREIGN INVESTMENT AND TO REDUCE STATE CONTROL BANK WORKERS FEAR PRIVATIZATIONS WILL ERODE JOB SECURITY THE EMPLOYEES WHOSE MONTHLY PAY AVERAGES 5000 RUPEES 160 WANT INCREASES OF AS MUCH AS 20 GEORGIA PLANS TO INTRODUCE COUPONS SOON AS A CURRENCY TO REPLACE THE RUBLE THE FORMER SOVIET REPUBLIC WOULD BE THE SIXTH TO ABANDON THE RUBLE RUSSIA HAS CUT THE SUPPLY OF RUBLES TO GEORGIA CREATING A SHORTAGE A GEORGIAN OFFICIAL SAID THE COUPONS WILL BE USED IN A TRANSITIONAL STEP BEFORE GEORGIA ESTABLISHES ITS OWN CURRENCY THE LARI IN A FEW MONTHS AUSTRALIA IS OFFERING NEW PETROLEUM EXPLORATION LICENSES FOR NINE OFFSHORE AREAS THE SIXYEAR PERMITS WILL ALLOW ACCESS TO RELATIVELY UNDEREXPLORED SITES IN THE MALITA/CALDER GRABEN AREA OFF THE NORTHERN TERRITORY THE VULCAN SUBBASIN IN THE NORTHWEST THE CARNARVON BASIN OFF WESTERN AUSTRALIA STATE AND THE BREMER BASIN IN THE SOUTHWEST MOST OF THE AREAS HAVE BEEN EXPLORED BUT THE RESOURCES MINISTRY SAID ADDITIONAL WORK IS NEEDED TO ASSESS THEIR PETROLEUM POTENTIAL FULLY AUSTRALIA PRODUCES 520000 BARRELS OF CRUDE OIL A DAY OR 80 OF THE COUNTRY'S NEEDS BRITISH BUILDING SOCIETIES THE COUNTRY'S BIGGEST SOURCE OF HOME LOANS SAID THEY MAY BE FORCED TO RAISE MORTGAGE INTEREST RATES BECAUSE OF COMPETITION FROM THE GOVERNMENT'S NATIONAL SAVINGS PROGRAM THE WARNING RAISED CONCERNS ABOUT SUSTAINING THE FLEDGLING RECOVERY IN BRITAIN'S HOUSING MARKET AS THE ECONOMY STRUGGLES TO EMERGE FROM RECESSION THE BUILDING SOCIETIES ARE COMPETING FOR SAVERS WITH THE NATIONAL SAVINGS PROGRAM WHICH PAYS INTEREST BETWEEN 65 AND 7 MOST MORTGAGE INTEREST RATES NOW ARE JUST UNDER 8 AND GIVE THE LENDERS NARROW PROFIT MARGINS MOREOVER BRITISH BUDGET CHANGES WILL ALLOW INDIVIDUALS TO DEPOSIT LARGER AMOUNTS IN NATIONAL SAVINGS BONDS AND OTHER ACCOUNTS MANY OF WHICH ARE TAXFREE INVESTMENTS CHILE FORECAST INFLATION WILL FALL TO AN 11 RATE THIS YEAR FROM 18 LAST YEAR AND GROSS DOMESTIC PRODUCT WILL RISE BETWEEN 6 AND 7 A LONGTERM SUSTAINABLE RATE FROM 104 GROWTH IN 1992 KAI TAK INTERNATIONAL AIRPORT IN HONG KONG WILL CHARGE PASSENGERS A DEPARTURE FEE OF 20 HONG KONG DOLLARS US259 STARTING THURSDAY TO HELP PAY FOR SECURITY 9303300150 930330 WOMEN'S GROUPS BATTLE PUBLISHERS IN CANADIAN CASE BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO WOMEN'S GROUPS ARE SQUARING OFF WITH PUBLISHERS OF EROTIC MAGAZINES IN A UNIQUE CASE IN ONTARIO THAT COULD LEAD TO A BAN ON THE SALE OF THE MAGAZINES IN THE PROVINCE'S CONVENIENCE STORES THE ONTARIO HUMAN RIGHTS COMMISSION A QUASIJUDICIAL ARM OF THE PROVINCIAL GOVERNMENT HAS SET UP AN INQUIRY TO EXAMINE COMPLAINTS BY TWO TORONTO WOMEN THE WOMEN CLAIM THAT THE MAGAZINES INCLUDING PLAYBOY AND PENTHOUSE CREATE A NEGATIVE AND HOSTILE ENVIRONMENT FOR WOMEN IN THREE CONVENIENCE STORES WHERE THEY SHOP THEY SAY THAT CONSTITUTES DISCRIMINATION UNDER THE PROVINCE'S HUMAN RIGHTS CODE IF THE THREEPERSON INQUIRY BOARD FINDS DISCRIMINATION IT COULD ORDER THE OWNERS OF THE THREE STORES TO PAY A PENALTY TO THE WOMEN STOP SELLING THE MAGAZINES OR EVEN BAN THE SALE OF SUCH MAGAZINES IN ALL OF THE PROVINCE'S CONVENIENCE STORES THE CASE WITHOUT PRECEDENT IN THAT ANTIPORNOGRAPHY GROUPS ARE TAKING A HUMAN RIGHTS APPROACH TO CURBING THE SALE OF ADULT MAGAZINES SAYS BURTON JOSEPH A LAWYER REPRESENTING PLAYBOY MAGAZINE AT THE INQUIRY PLAYBOY OWNED BY PLAYBOY ENTERPRISES INC OF CHICAGO SELLS ABOUT 50000 MAGAZINES PER ISSUE IN ONTARIO ABOUT HALF OF THEM AT CONVENIENCE STORES AND NEWSTANDS A BAN ON SALES IN CONVENIENCE STORES WOULD MATERIALLY AFFECT PLAYBOY'S CIRCULATION OF ABOUT 35 MILLION IN NORTH AMERICA MR JOSEPH SAYS SUCH A BAN HE ADDS WOULD BE TAKING A SERIOUS STEP DOWN THE ROAD TO CENSORSHIP AND TOTALITARIANISM THE ISSUE HAS NOTHING TO DO WITH CENSORSHIP BUT HARM TO WOMEN SAYS SUSAN MCCRAE VANDER VOET EXECUTIVE DIRECTOR OF THE METRO ACTION COMMITTEE ON PUBLIC VIOLENCE AGAINST WOMEN AND CHILDREN A TORONTO GROUP TAKING PART IN THE INQUIRY THE IMAGES IN EROTIC MAGAZINES AND VIDEOS CONTRIBUTE TO THE MENTALITY THAT WOMEN ARE SUITABLE TARGETS FOR VIOLENCE SHE SAYS THE INQUIRY PROMISES TO RAISE HEATED DEBATE AT HEARINGS SCHEDULED THROUGH THE SUMMER SAY PARTICIPANTS ON BOTH SIDES OF THE ISSUE SO FAR 27 PUBLISHERS ANTICENSORSHIP GROUPS WOMEN'S GROUPS AND INDIVIDUALS HAVE SIGNED UP TO SPEAK OUT AT THE HEARINGS WHICH BEGIN THURSDAY THE GROUPS ARE EVENLY SPLIT ON THE ISSUE A COMMISSION SPOKESMAN SAID 9303300149 930330 FINANCING BUSINESS TIME WARNER INC TIME WARNER INC NEW YORK SAID ITS FILMED ENTERTAINMENT HOME BOX OFFICE PROGRAMMING AND CABLE PARTNERSHIP TIME WARNER ENTERTAINMENT CO LIMITED PARTNERSHIP SOLD 1 BILLION OF 8 3/8 SENIOR DEBENTURES DUE 2023 PROCEEDS WILL BE USED TO REDUCE BANK DEBT 9303300148 930330 FINANCING BUSINESS BAROID CORP BAROID CORP SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A REGISTRATION STATEMENT FOR A PROPOSED OFFERING OF 125 MILLION OF SENIOR NOTES DUE 2003 THE OIL SERVICE COMPANY BASED IN HOUSTON SAID IT WOULD USE THE PROCEEDS TO PAY SOME PORTION OF BANK DEBT SALOMON BROTHERS INC AND LEHMAN BROTHERS ARE UNDERWRITING THE OFFERING 9303300147 930330 GM'S HUGHES AIRCRAFT WILL MOVE 2000 JOBS TO ARIZONA OPERATION LOS ANGELES GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO SAID IT WILL CONSOLIDATE ALL ENGINEERING OPERATIONS AND PRODUCTLINE MANAGEMENT OF ITS MISSILE OPERATIONS IN TUCSON ARIZ TRANSFERRING SOME 2000 JOBS FROM SOUTHERN CALIFORNIA THE EMPLOYEES WILL BE TRANSFERRED FROM CANOGA PARK POMONA RANCHO CUCAMONGA AND SAN DIEGO DURING 1994 AFFECTED EMPLOYEES WILL BE NOTIFIED OF THEIR STATUS THIS SUMMER THE ANNOUNCEMENT FOLLOWS HUGHES'S DECISION LAST SEPTEMBER TO CONSOLIDATE IN TUCSON THE MISSILEMANUFACTURING OPERATIONS IT ACQUIRED FROM GENERAL DYNAMICS CORP LAST YEAR FOR 450 MILLION AMONG THE PRODUCTION PROGRAMS RECENTLY TRANSFERRED WAS THE TOMAHAWK CRUISE MISSILE WHICH HAD BEEN PRODUCED IN SAN DIEGO HUGHES MISSILE SYSTEMS CO WILL SLASH NEARLY 4000 JOBS AS A RESULT OF THE CONSOLIDATIONS THE SUBSIDIARY CURRENTLY EMPLOYS ABOUT 12000 PEOPLE 4200 OF THEM IN TUCSON AT THE END OF 1994 THE COMPANY WILL HAVE MORE THAN 8000 EMPLOYEES MOSTLY IN TUCSON MICHAEL T SMITH CHAIRMAN AND PRESIDENT OF HUGHES MISSILE SYSTEMS SAID THAT CONSOLIDATING THE OPERATIONS IN ONE LOCATION WILL ENHANCE OUR ENGINEERING COMPETITIVENESS AND INCREASE THE QUALITY OF PROGRAM DEVELOPMENT DUE TO THE ELIMINATION OF GEOGRAPHIC BARRIERS BUT HE ALSO BLAMED THE POOR ECONOMIC ENVIRONMENT IN SOUTHERN CALIFORNIA AND THE STATE'S STRICT REGULATORY ENVIRONMENT AS MAJOR FACTORS FORCING THE MOVE CALIFORNIA IS NO LONGER A COMPETITIVE PLACE TO DO BUSINESS HE SAID URGING THE STATE LEGISLATURE TO ADOPT REGULATORY REFORM PROPOSALS SET FORTH BY GOV PETE WILSON'S COUNCIL ON CALIFORNIA COMPETITIVENESS WE HAVE TO CHANGE CALIFORNIA HUGHES WILL DISPOSE OF ITS FACILITIES IN CANOGA PARK AND POMONA AND WILL CONTINUE ITS PLANS FOR VACATING FACILITIES IN SAN DIEGO AND RANCHO CUCAMONGA STILL OWNED OR OPERATED BY GENERAL DYNAMICS HOWEVER HUGHES WILL CONTINUE TO OPERATE ITS SYCAMORE CANYON FACILITY NEAR SAN DIEGO FOR LOADING ORDNANCE AND FUEL CORPORATE HEADQUARTERS AND OTHER BIG OPERATIONS OF HUGHES A UNIT OF GM HUGHES ELECTRONICS WILL REMAIN IN CALIFORNIA 9303300146 930330 WHO'S NEWS ONTARIO HYDRO ONTARIO HYDRO TORONTO O ALLAN KUPCIS WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ONTARIO GOVERNMENTOWNED UTILITY DR KUPCIS 49 YEARS OLD HAS BEEN WITH THE COMPANY 20 YEARS AND HAS BEEN ACTING PRESIDENT AND CHIEF OPERATING OFFICER SINCE OCTOBER 9303300145 930330 AIRING A SCANDAL THE BCCI CASE OPENS WITH ROBERT ALTMAN ALONE IN THE SPOTLIGHT CLIFFORD LAW PARTNER'S TRIAL WILL PROBE THE WORKINGS OF BIZARRE BANK NETWORK WONDER WOMAN IS CONFIDENT BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ROBERT ALTMAN FOR YEARS HAS LIVED AND THRIVED IN THE SHADOW OF OTHERS THE 46YEAROLD WASHINGTON LAWYER IS USUALLY CHARACTERIZED EITHER AS THE PROTEGE OF DEMOCRATIC PARTY ICON CLARK CLIFFORD OR THE HUSBAND OF ACTRESS LYNDA CARTER FAMOUS FOR HER WONDER WOMAN TELEVISION SERIES NOW MR ALTMAN IS IN THE SPOTLIGHT BY HIMSELF SOME 21 MONTHS AFTER BANK REGULATORS SHUT DOWN THE SCANDALRIDDEN BANK OF CREDIT & COMMERCE INTERNATIONAL A UNIT OF BCCI HOLDINGS LUXEMBOURG SA MR ALTMAN GOES ON TRIAL TODAY IN NEW YORK STATE COURT IN MANHATTAN ON BANK FRAUD AND BRIBERY CHARGES IN THE BCCI MATTER MR ALTMAN ALSO HAS BEEN INDICTED ON FEDERAL CHARGES IN WASHINGTON DC THE JUDGE IN THAT PARALLEL CASE DECIDED TO LET THE NEW YORK TRIAL PROCEED FIRST BECAUSE PUTTING THE FEDERAL TRIAL AHEAD MIGHT CAUSE DISMISSAL OF THE NEW YORK CASE UNDER THE STATE'S DOUBLEJEOPARDY LAWS IN ANY CASE THE NEW YORK CHARGES ARE BROADER AND THE MANHATTAN DISTRICT ATTORNEY'S OFFICE HAS BEEN INVESTIGATING THE BCCI MATTER LONGER ALTHOUGH MR CLIFFORD WAS INDICTED AS WELL FOR HIS ROLE IN THE AFFAIR THE 86YEAROLD LAWYER AND FORMER PRESIDENTIAL ADVISER WON A POSTPONEMENT OF HIS TRIAL TO UNDERGO HEARTBYPASS SURGERY EARLIER THIS MONTH MR ALTMAN'S TRIAL IS A MILESTONE IN ONE OF THE MOST COMPLEX FARFLUNG FINANCIAL SCANDALS EVER IN VARIOUS COURT DOCUMENTS AND REGULATORY REPORTS BCCI HAS BEEN CHARGED WITH COOPTING POLITICAL FIGURES AROUND THE WORLD AS IT LAUNDERED FUNDS AIDED TAXEVADERS AND TERRORISTS AND IN THE END LEFT HUNDREDS OF DEPOSITORS IN THE HOLE THE TRIALS OF MR ALTMAN AND LATER MR CLIFFORD WILL SHED CONSIDERABLE LIGHT ON THE ROGUE BANK'S TIES WITH THE WASHINGTON ESTABLISHMENT FOR MR ALTMAN A REPUTATION AND LEGAL CAREER HANG IN THE BALANCE FOR HIS MENTOR THE STAKES ARE PERHAPS HIGHER A CONSUMMATE WASHINGTON INSIDER WHO HAS SERVED AS AN ADVISER TO FOUR PRESIDENTS MR CLIFFORD HAS SAID HE WOULD GO TO ANY LENGTHS TO CLEAR HIS NAME OF THE CHARGES ARISING FROM THE SCANDAL THE SPLITTING OF THE TRIALS COULD GIVE MR CLIFFORD THE ADVANTAGE SINCE HIS DEFENSE TEAM COULD WATCH THE PROSECUTION'S STRATEGY AGAINST MR ALTMAN MESSRS ALTMAN AND CLIFFORD BOTH VIGOROUSLY DENY THE CHARGES AGAINST THEM AND HAVE NEVER SO MUCH AS DISCUSSED A POSSIBLE PLEABARGAIN DEAL WITH PROSECUTORS ALTHOUGH FAMILY MEMBERS SAY THE IMBROGLIO HAS BEEN AN ORDEAL FOR MR ALTMAN THE LAWYER'S WASHINGTON LIFE BY OUTWARD APPEARANCES HASN'T CHANGED THAT RADICALLY UNTIL LAST SEPTEMBER HE WAS A REGISTERED LOBBYIST FOR THE NONPRESCRIPTION DRUG ASSOCIATION AND LAST YEAR HE CONTINUED TO LUNCH AT HIS FAVORITE DOWNTOWN RESTAURANTS SUCH AS DUKE ZIEBERT'S WITH OLD FRIENDS LIKE TV HOST LARRY KING MR ALTMAN AND HIS WIFE EVEN ATTENDED SOME OF THE INAUGURAL CELEBRATIONS WHERE MS CARTER RESPLENDENT IN A RED WHITE AND BLUE PLAID JACKET TOLD THE SAN FRANCISCO EXAMINER WE ARE LOOKING FORWARD TO BEING VINDICATED THIS HAS BEEN A TRAVESTY THE WAY PEOPLE HAVE TREATED CLARK CLIFFORD AND BOB IT IS PROSECUTORIAL ABUSE TO THE MAX AND POLITICALLY MOTIVATED EVERYONE INVOLVED WITH THE TRIAL EXPECTS IT TO BE UNUSUALLY BITTER AND DRAWNOUT JUDGE JOHN AK BRADLEY WHO IS TRYING THE NEW YORK STATE CASE HAS WARNED PROSPECTIVE JURORS THAT THE TRIAL MAY LAST FOUR TO SIX MONTHS THE PROSECUTION'S LIST OF WITNESSES APPARENTLY EXCEEDS 60 WHILE THE DEFENSE IS PREPARED TO CALL ABOUT HALF THAT NUMBER ONE STRIKING ASPECT OF THE TRIAL WILL BE THE ABSENCE OF MR CLIFFORD MR ALTMAN'S MENTOR FOR TWO DECADES FOR MONTHS AFTER THE BCCI SCANDAL BROKE NEITHER MAN WAS PREPARED TO END THEIR HABIT OF MOVING IN LOCK STEP MR ALTMAN HAD WORKED AT MR CLIFFORD'S LAW FIRM EVER SINCE LEAVING LAW SCHOOL AND EVEN NAMED HIS ELDEST CHILD JAMES CLIFFORD ALTMAN THE TWO LAWYERS REFUSED TO TAKE SEPARATE LEGAL REPRESENTATION EVEN THOUGH BOTH JUDGES INVOLVED ADVISED THEM THAT SEPARATE ATTORNEYS MIGHT BE IN THEIR BEST INTERESTS ONLY LAST FALL DID THE TWO MEN FINALLY DECIDE TO RETAIN SEPARATE CRIMINAL COUNSEL IN THE NEW YORK PROCEEDINGS DURING THE PRELUDE TO THE TRIAL MR ALTMAN HAS APPEARED DAPPER IN A DOUBLEDBREASTED DARK SUIT ON THE FIRST DAY OF JURY SELECTION A PROSPECTIVE JUROR APPARENTLY CONFUSING MR ALTMAN WITH HIS HOLLYWOOD NAMESAKE CRIED OUT ISN'T THAT THE MOVIE DIRECTOR THE WASHINGTON LAWYER WHO REALLY IS ON TRIAL OVER THE TANGLED BCCI SCANDAL REMAINS SOMETHING OF A MYSTERY AN ENTOURAGE OF FIERCELY SUPPORTIVE FAMILY MEMBERS INSISTS THAT WHEN YOU LOOK PAST SUCH TRAPPINGS AS MR ALTMAN'S MANSION IN POTOMAC MD AND HIS HIGH PROFILE ON THE WASHINGTON SOCIAL SCENE YOU FIND A FAMILY MAN WHO FAVORS BLUE JEANS AND LIKES WATCHING PRO FOOTBALL ON TELEVISION HE'S A DIEHARD REDSKINS FAN SAYS NANCY ALTMAN HIS SISTER QUICKLY ADDING WE SHOULD PROBABLY SAY WE'RE GIANTS FANS BECAUSE THE TRIAL IS IN NEW YORK SHE DESCRIBES THE MANSION AS A WARM FAMILY SORT OF PLACE AND SUGGESTS THAT HER BROTHER MOVED THERE TO ENSURE PRIVACY FOR HIS CELEBRITY WIFE EVERY WEEKEND SHE SAYS MR ALTMAN ATTENDS A FAMILY BRUNCH OF LOX EGGS BAGELS AND CREAM CHEESE PREPARED BY HIS FATHER NORMAN ALTMAN MS CARTER MR ALTMAN'S THREE SISTERS AND HIS MOTHER WHO PRODUCES IT'S ACADEMIC A TV GAME SHOW FOR HIGHSCHOOL AUDIENCES HAVE BEEN CONSPICUOUSLY ON HAND DURING THE JURY SELECTION BUT IN AN INDICATION OF HOW HARSH THE TRIAL MAY BECOME PROSECUTORS HAVE CRITICIZED MR ALTMAN'S HABIT OF HUGGING RELATIVES IN THE COURTROOM CONTENDING THAT IT SOMETIMES HAS BEEN A DISPLAY FOR THE JURY NONETHELESS AFFECTION RUNS DEEP IN THE ALTMAN FAMILY SOME FAMILY TIES OVERLAPPED WITH MR ALTMAN'S BUSINESS INTERESTS FATHER AND SON BOTH HAD ROLES AT FIRST AMERICAN BANKSHARES INC THE BCCICONTROLLED WASHINGTON BANK WHERE ROBERT ALTMAN WAS THE OUTSIDE LEGAL COUNSEL PRESIDENT OF A MAJOR SUBSIDIARY AND A SHAREHOLDER NORMAN ALTMAN SERVED AS A DIRECTOR AT FIRST AMERICAN'S FIRST ADVANTAGE MORTGAGE UNIT IN 1988 AND 1989 AND HIS WASHINGTON LAW FIRM KROOTH & ALTMAN ACTED AS OUTSIDE LEGAL COUNSEL TO THE BANK UNIT ALTHOUGH THE TRIAL WILL DOUBTLESS HIGHLIGHT MR ALTMAN'S FAMILY RELATIONSHIPS IT WILL ALSO SHOW A HARDDRIVING DETERMINED DEALMAKER STATE PROSECUTORS ASSERT IN THEIR INDICTMENT THAT MR ALTMAN SYSTEMATICALLY MISLED BANK REGULATORS TO EVADE AMERICAN LAWS IN RETURN THE PROSECUTORS CHARGE MR ALTMAN GARNERED MILLIONS OF DOLLARS IN LEGAL FEES AND PROFITS FROM A BCCISPONSORED STOCK DEAL THE NEW YORK STATE CHARGES CONTEND THAT THE TOP MANAGERS OF BCCI HOLDINGS WITH MR ALTMAN'S HELP ENGAGED IN A SECRET SCHEME TO MANAGE AND CONTROL FIRST AMERICAN AND OTHER US FINANCIAL INSTITUTIONS MR ALTMAN DISGUISED CONCEALED AND OMITTED TO CONVEY PERTINENT INFORMATION AS HIS PART OF THE SCHEME THE INDICTMENT ALLEGES IN RETURN FOR HIS HELP IT CHARGES MR ALTMAN ACCEPTED MILLIONS OF DOLLARS IN LEGAL FEES AND FAVORABLE STOCK DEALS PROSECUTORS WILL TRY TO PROVE THAT THESE AMOUNTED TO COMMERCIAL BRIBES FROM BCCI THE INDICTMENT ALSO DESCRIBES MR ALTMAN'S ROLE IN PLACING TENS OF MILLIONS OF DOLLARS OF FIRST AMERICAN FUNDS ON DEPOSIT WITH BCCI AND ITS AFFILIATES IT SAYS BCCI LENT HIM 6 MILLION SO THAT HE COULD BUY FIRST AMERICAN STOCK WHILE AGREEING THAT HE WOULDN'T BE OBLIGATED PERSONALLY TO REPAY THE PRINCIPAL OF THE LOAN OR ANY INTEREST THEREON BCCI WOULD LOOK SOLELY TO THE SHARES FOR REPAYMENT THE INDICTMENT SAYS AND IT DESCRIBES HOW THE PRICE AND SALE OF MUCH OF THIS STOCK WERE NEGOTIATED TO GIVE MR ALTMAN AN AFTERTAX PROFIT OF 15 MILLION AT THE PRETRIAL COURT HEARINGS MR ALTMAN'S LAWYER GUSTAVE NEWMAN HAMMERED AWAY AT APPARENT INCONSISTENCIES A FEW MAY HAVE SHOWN UP IN VIDEOTAPED TESTIMONY OF FORMER BCCI OFFICER KHALID SHARIH WHO WAS QUESTIONED SEVERAL WEEKS PRIOR TO THE OPENING OF THE TRIAL BECAUSE HE IS SEVERELY ILL WITH CANCER MR NEWMAN CROSSEXAMINED HIM EXTENSIVELY TO SHOW DIFFERENCES IN MR SHARIH'S VARIOUS DEPOSITIONS TO THE FEDERAL RESERVE THE MANHATTAN DISTRICT ATTORNEY AND THE JUSTICE DEPARTMENT THE DEFENSE HAS ALSO INDICATED THAT IT WILL USE FED AUDIT REPORTS AND GOVERNMENT WITNESSES TO SHOW THAT MANY PEOPLE INCLUDING MESSRS CLIFFORD AND ALTMAN WERE IN THE DARK ABOUT THE ALLEGED ILLEGAL RELATIONSHIP BETWEEN BCCI AND FIRST AMERICAN MR ALTMAN CONTENDS THAT BCCI LOANS TO PURCHASE FIRST AMERICAN SHARES WEREN'T ALL THAT DIFFERENT FROM FAVORABLE STOCK PACKAGES MANY COMPANIES PROVIDE THEIR TOP EXECUTIVES AS FOR FEES PAID BY BCCI MR ALTMAN CONTENDS THAT THESE WERE LEGAL CHARGES NOT BRIBES AS BANK REGULATORS AND OTHERS WERE LOOKING INTO ALLEGATIONS OF IRREGULARITIES INVOLVING BCCI MR ALTMAN FUNCTIONED AS A VIGOROUS WELLCONNECTED DEFENDER FOR THE BANK EVEN WHILE ITS REPUTATION SLIPPED AS IT ENTERED A GUILTY PLEA TO CHARGES OF LAUNDERING DRUG MONEY AND AS EVIDENCE OF OTHER FINANCIAL CHICANERY WAS EMERGING SOME OF MR ALTMAN'S FRIENDS IN THE WASHINGTON LEGAL FRATERNITY GOT TOGETHER LAST MONTH TO HELP FORM THE ROBERT A ALTMAN LEGAL DEFENSE FUND WHICH AIMS TO COLLECT MONEY FOR HIS DEFENSE SEVERAL OF THESE LAWYERS WHO ARE FORMER FEDERAL PROSECUTORS CONTENDED IN A RECENT FUNDRAISING LETTER THAT MR ALTMAN IS THE VICTIM OF POLITICIZED MEDIADRIVEN DECISIONMAKING HOWEVER SOME OF THOSE WHO SIGNED THE LETTER SERVED AS LEGAL COUNSEL TO BCCI AND ITS OFFICERS BETWEEN 1988 AND 1991 IN TRIALS IN FEDERAL COURT IN TAMPA FLA SOME OF THE PROSECUTION'S WITNESSES MAY WELL COME OUT WITH EXPLOSIVE ALLEGATIONS ABOUT THE GOVERNMENT AS WELL AS ABOUT MR ALTMAN DILDAR RIZVI THE SENIOR BCCI OFFICER WHO WAS IN WASHINGTON HELPING MESSRS CLIFFORD AND ALTMAN ORCHESTRATE THE 197882 TAKEOVER OF FINANCIAL GENERAL BANKSHARES INC THE PREDECESSOR OF FIRST AMERICAN BANKSHARES IS KNOWLEDGEABLE ABOUT THE DETAILS OF THE BATTLE FOR CONTROL OF THE BANK A CRITICAL QUESTION IS WHETHER SOME FEDERAL BANK REGULATORS THEMSELVES MIGHT SECRETLY HAVE FULLY UNDERSTOOD AND SANCTIONED THE BCCI BID FOR CONTROL MR CLIFFORD HAS CONTENDED THAT IF HE AND MR ALTMAN ARE CULPABLE SO IS THE FEDERAL RESERVE AFTER INTERVIEWING MR RIZVI THE JUSTICE DEPARTMENT RECENTLY SAID IT PLANNED TO BROADEN THE FEDERAL INDICTMENTS AGAINST MESSRS CLIFFORD AND ALTMAN MR RIZVI WHO APPARENTLY RECEIVED IMMUNITY FROM THE DEPARTMENT HAS ARRIVED FROM PAKISTAN TO TESTIFY AT MR ALTMAN'S TRIAL MR NEWMAN AND NEW YORK PROSECUTOR JOHN MOSCOW HAVE ALREADY SPARRED MR NEWMAN COMPLAINS BITTERLY THAT HE IS BEING RUSHED TO TRIAL BEFORE HE HAS HAD ENOUGH TIME TO SEE LET ALONE DIGEST MANY BOXES OF MATERIAL THAT HE SAYS MAY HELP MR ALTMAN'S DEFENSE THE PROSECUTION SAYS THAT IT HAS MADE ANY APPROPRIATE PAPERS AVAILABLE BUT THAT IT ONLY RECENTLY RECEIVED SOME OF THE DOCUMENTS THE DEFENSE WANTS TO STUDY ANOTHER SQUABBLE ERUPTED OVER REMARKS MS CARTER REPORTEDLY MADE IN THE NEW YORK COURTHOUSE RESTROOMS A PROSPECTIVE JUROR ALETA STYERS TOLD THE COURT THAT SHE HAD SEEN LYNDA CARTER SMOKING AND DISCUSSING HER HUSBAND WITH TWO OTHER WOMEN IN THE OUTER PART OF THE LADIES ROOM THE PROSECUTION COMPLAINED THAT THE CONVERSATION MAY HAVE AMOUNTED TO AN ATTEMPT TO INFLUENCE POSSIBLE JURORS MS CARTER WHO GAVE HER ACCOUNT THROUGH MR NEWMAN EXPLAINED THAT A MATRIMONIAL LAWYER HAD APPROACHED HER AND SAID I HOPE I DON'T SEE YOU IN MY KIND OF COURT BECAUSE I'M A MATRIMONIAL LAWYER MS CARTER SAYS SHE MERELY REPLIED YOU'LL NEVER SEE ME HERE BECAUSE MY HUSBAND IS A TERRIFIC GUY PROSECUTORS HOWEVER TRIED TO EXCLUDE MS CARTER FROM THE COURTROOM BECAUSE OF THE INCIDENT THE JUDGE DECLINED BUT RELAYED A WARNING TO MS CARTER TO AVOID ANY SUCH DISCUSSIONS IN THE PRESENCE OF JURORS OR PROSPECTIVE JURORS 9303300144 930330 WHO'S NEWS QUAKER OATS CO QUAKER OATS CO CHICAGO THIS FOOD AND BEVERAGE CONCERN NAMED CHARLES F MARCY PRESIDENT OF ITS PLEASANTON CALIFBASED GOLDEN GRAIN SUBSIDIARY MR MARCY 42 YEARS OLD HAD BEEN PRESIDENT OF NATIONAL PRODUCTS CORP A UNIT OF KRAFT GENERAL FOODS INC HE FILLS THE POST VACATED LAST JULY WHEN DAVID L BERI WAS PROMOTED TO PRESIDENT OF QUAKER OATS' BREAKFAST DIVISION 9303300143 930330 FINANCING BUSINESS MARK IV INDUSTRIES MARK IV INDUSTRIES INC AMHERST NY SAID IT COMPLETED THE SALE OF 258 MILLION OF 8 3/4 SENIOR SUBORDINATED NOTES DUE 2003 PROCEEDS WILL BE USED IN PART TO FINANCE THE PURCHASE OF THE COMPANY'S 1902 MILLION OF 13 3/8 SUBORDINATED DEBENTURES DUE MARCH 15 1999 FOR A CASH PURCHASE PRICE OF 113750 PER 1000 PRINCIPAL AMOUNT PLUS ACCRUED INTEREST MARK IV MAKES PRODUCTS AND SYSTEMS FOR THE POWER TRANSFER MASS TRANSIT AND PROFESSIONAL AUDIO BUSINESSES 9303300142 930330 WHO'S NEWS LEVI STRAUSS & CO LEVI STRAUSS & CO SAN FRANCISCO PETE JACOBI 49 YEARS OLD WAS NAMED PRESIDENT OF LEVI STRAUSS INTERNATIONAL A SUBSIDIARY OF THE APPAREL MANUFACTURER THAT ACCOUNTS FOR MORE THAN HALF THE COMPANY'S EARNINGS MR JACOBI WAS PRESIDENT OF THE COMPANY'S GLOBAL SOURCING UNIT WHICH DEVELOPS GUIDELINES AND STANDARDS FOR INTERNATIONAL CONTRACTORS HE SUCCEEDS LEE SMITH 50 WHO LEFT THE COMPANY LAST YEAR TO WORK IN AIDS ADVOCACY 9303300141 930330 WHO'S NEWS LUXTEC CORP LUXTEC CORP WORCESTER MASS JAMES W HOBBS PRESIDENT OF CLOSELY HELD GRAYLYN ASSOCIATES WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER MR HOBBS 44 YEARS OLD SUCCEEDS BERNARD CLARK 52 WHO RESIGNED DEC 31 CITING PERSONAL REASONS MR HOBBS HAS HEADED TWO SMALL MEDICAL TECHNOLOGY COMPANIES AND PREVIOUSLY WORKED AT JOHNSON & JOHNSON LUXTEC MAKES FIBER OPTIC LIGHTING PRODUCTS FOR SURGEONS 9303300140 930330 MARKETING & MEDIA FILMMAKERS BUY IMAGINE FILM LOS ANGELES IMAGINE FILM ENTERTAINMENT INC SAID FILMMAKERS RON HOWARD AND BRIAN GRAZER COMPLETED THEIR ACQUISITION OF THE MOVIE COMPANY WHICH THEY FOUNDED IN 1985 THE ACQUISITION WAS COMPLETED IN A TWOSTEP PROCESS THE FIRST OF WHICH WAS A 9ASHARE OR 216 MILLION TENDER OFFER FOR THE 54 OF THE COMPANY MESSRS HOWARD AND GRAZER DIDN'T ALREADY OWN THAT OFFER ENDED FEB 17 AND RESULTED IN THE ACQUISITION OF 94 OF IMAGINE'S COMMON STOCK THE REMAINING SHARES WERE CONVERTED INTO RIGHTS TO RECEIVE 9 A SHARE MESSRS HOWARD AND GRAZER LEFT THE COMPANY LAST YEAR TO PRODUCE MOVIES UNDER AN AGREEMENT WITH MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC UNIT 9303300138 930330 FIRST BANK SYSTEM'S CLEARANCE MINNEAPOLIS FIRST BANK SYSTEM INC SAID THE FEDERAL RESERVE BOARD HAS APPROVED ITS APPLICATION TO ACQUIRE COLORADO NATIONAL BANKSHARES INC TERMS WEREN'T DISCLOSED THE APPROVAL IS SUBJECT TO THE DIVESTITURE OF COLORADO NATIONAL'S BANKS IN GRAND JUNCTION AND GLENWOOD SPRINGS COLO THE TRANSACTION IS EXPECTED TO CLOSE BETWEEN APRIL 30 AND MAY 15 9303300137 930330 WHO'S NEWS TYSON FOODS INC TYSON FOODS INC SPRINGDALE ARK JOHN TYSON 39 YEARS OLD WAS NAMED TO THE NEW POSITION OF PRESIDENT OF THE BEEF AND PORK DIVISION OF THIS POULTRY CONCERN MR TYSON WHOSE GRANDFATHER FOUNDED THE COMPANY IN 1935 RECENTLY OVERSAW THE INTEGRATION OF THE ACQUISITIONS OF ARCTIC ALASKA FISHERIES CORP AND LOUIS KEMP SEAFOOD CO AND HAS BEEN WITH THE COMPANY HIS ENTIRE CAREER 9303300136 930330 TORONTODOMINION SETS BUYBACK TORONTO TORONTODOMINION BANK SAID IT PLANS TO BUY BACK AS MANY AS 700000 CLASS A SERIES D PREFERRED SHARES OR ABOUT 194 OF THE OUTSTANDING SHARES OF THE SERIES THE BANK ALSO PLANS TO BUY BACK AS MANY AS 150000 CLASS A SERIES E PREFERRED SHARES OR ABOUT 186 OF THE OUTSTANDING SHARES OF THE SERIES THE PURCHASES WON'T EXCEED 25 CANADIAN DOLLARS US2009 PER SERIES D SHARE AND C100 PER SERIES E SHARE FOR A MAXIMUM CONSIDERATION OF C325 MILLION THE BANK SAID REPURCHASES WOULD TAKE PLACE BETWEEN MARCH 31 AND OCT 31 9303300135 930330 BUSINESS WORLD NEWS YOU CAN USE FROM A LAWYER BY TIM W FERGUSON MILTON BORDWIN KNOWS THAT THE LAST PERSON A SMALLBUSINESS OWNER WANTS TO HEAR FROM IS AN ATTORNEY THE EVERMOUNTING LEGAL HASSLES OF US ENTERPRISES RANK ALONG WITH RISK OF FAILURE CRIME AND ROUTINE EMPLOYEE PROBLEMS AS DETERRENTS TO PURSUING THE NEW AMERICAN DREAM BUT MR BORDWIN A LAWYER FOR 36 YEARS SAYS HE CAN HELP HIS CAUSE IS PREVENTIVE LAW ONE FORM OF PRACTICE THAT ATTORNEYS HAVE BEEN SHY ABOUT INTRODUCING TO A WEARY NATION TO PUSH THE CONCEPT MR BORDWIN HAS HIS OWN ENTERPRISE IN NEWTON MASS A MONTHLY NEWSLETTER THAT USES CASE STUDIES TO ALERT AND ADVISE THE BOSS ABOUT THE MANY NEW WAYS TO END UP IN A COURTROOM AFTER A TEST YEAR IN WHICH HE'S BEEN MAILING FEWER THAN 200 A MONTH HE WANTS TO GO BIGGER TIME THE BORDWIN LETTER HAS COMPETITION INCLUDING BUSINESS MAGAZINES AND NEWSPAPERS TRYING TO DELIVER MORE USEFUL CONTENT TO ENTREPRENEURS BUT THE LEGAL PRACTICE ITSELF IS STILL HARDLY DEVELOPED SAYS LOUIS BROWN A UNIVERSITY OF SOUTHERN CALIFORNIA LAW PROFESSOR EMERITUS HE CHAIRS THE NATIONAL CENTER FOR PREVENTIVE LAW AND IS CONSIDERED THE ORIGINATOR OF THE FIELD 40 YEARS AGO MR BROWN IS ON THE BORDWIN LETTER'S ADVISORY BOARD AND BOTH MEN BLAME THE PROFESSION INCLUDING LAW SCHOOLS AND THE BAR FOR NOT ENCOURAGING DISPUTE AVOIDANCE AS AN ALTERNATIVE TO LITIGATION WORK PREVENTIVE LAW TO SIMPLIFY MEANS USING AN OUTSIDE ATTORNEY MUCH AS A BUSINESS MIGHT RELY ON AN ACCOUNTANT FOR PERIODIC CONTINUING REVIEW OF A COMPANY'S PRACTICES BUDDING LEGALISMS ARE AS BIG A CONSIDERATION FOR EXECUTIVES AS THE TAX CODE IT CAN BE ARGUED AND REGULATIONS AND CASE LAW HAVE BECOME SUCH A THICKET ENTANGLING EVEN BITESIZED BUSINESSES THAT ANYONE PREOCCUPIED WITH INNOVATING AND SELLING CANNOT HOPE TO KEEP CURRENT ON THEIR OWN IF HE CAN JUST GET 20 MINUTES A MONTH FROM THE HARRIED HEAD OF OPERATIONS MR BORDWIN BELIEVES HE CAN BEGIN TO OFFER THE KIND OF GUIDANCE THAT LARGER CORPORATIONS CAN RECEIVE FROM THEIR INHOUSE COUNSEL HIS LETTER USUALLY ENTAILS DIRECT STEPS TO AVOID LIABILITY IN SUCH AREAS AS EMPLOYMENT PRODUCTS AND TOXINS THE ADVICE COMES IN PLAIN ENGLISH ALTHOUGH IT MAY NOT ALWAYS BE WELCOME DISCUSSING THE INCREASING OFFICIAL USE OF ACTORS TO MONITOR DISCRIMINATION THE BORDWIN LETTER TELLS EMPLOYERS FIRST AND FOREMOST INTERVIEWING SHOULD BE LIMITED TO TRAINED PEOPLE WHO ARE SENSITIVE TO THE MYRIAD LEGAL REQUIREMENTS AFFECTING THE HIRING PROCESS DON'T LET ORDINARY EMPLOYEES GET INVOLVED IN THE INTERVIEW PROCESS IT'S GOTTEN TOO COMPLICATED AND RISKY AND POTENTIALLY COSTLY TO THE COMPANY LAWYERLY CAUTION SEEMS TO PREVAIL EVEN WHEN THE RISK IS DUBIOUS A CELEBRITY PHYSICIAN'S SUGGESTION TO CUT DOWN ON CELLULAR PHONE USE IS PASSED ALONG THOUGH MOST SCIENTISTS DISMISS THE ELECTROMAGNETICFIELD SCARE THAT PROMPTED IT A LOT OF THE STUFF IS CLIPANDPASTE FROM THE DAILY AND LEGAL PRESS THOUGH MR BORDWIN BOASTS OF BEING THE FIRST TO SPOT A TREND OR TWO HE HASTENS HOWEVER TO SAY HIS STUFF ISN'T SELFHELP MR BORDWIN ADVISES RELYING ON COUNSEL WHILE CONSULTING HIS CHECKLIST PREVENTIVE LAWYERS MIGHT EVEN USE THE LETTER AS A CALLING CARD THIS PUTS THE PUBLISHER AT ODDS WITH THOSE SUCH AS HELP ABOLISH LEGAL TYRANNY A WASHINGTONBASED GROUP THAT BATTLES ATTORNEY PROLIFERATION DISCOURAGING LITIGATION IS FINE SAYS THERESA MEEHAN RUDY OF HALT BUT PROMOTING PREVENTIVE LAW IN THE PROCESS COULD CREATE MORE OF A DEPENDENCY ON LAWYERS THAN NEED BE IT COSTS BUCKS TO KEEP AN ATTORNEY HANDY NO MATTER THE LONGERRUN SAVINGS MANY STARTUP COMPANIES ARE SO STARVED FOR CASH FLOW THAT THEY HAVE LITTLE APPETITE FOR LONGRANGE CALCULATIONS THE IDEA BETTER SUITS A MIDSIZED BUSINESS AT THAT A PREVENTIVE LAWYER MIGHT BE NANNYLIKE TOO FOCUSED ON RISK INSTEAD OF REWARD UNLESS COMPENSATED IN THE FORM OF STOCK AND THE ADVICE GIVEN COULD ITSELF BE SUBJECT TO SUBPOENA TO ESTABLISH A BASIS FOR HIGHER DAMAGES IF IT WERE FOUND TO BE BUSINESS IN NATURE RATHER THAN LEGAL AND PRIVILEGED ANOTHER HANGUP IS THE PAUCITY OF PREVENTIVE LAWYERS PROF BROWN ARGUES THAT THE BAR HAS MISSED A CHANCE TO RESPOND TO CRITICS SUCH AS FORMER VICE PRESIDENT DAN QUAYLE BY STRESSING A PRACTICE DESIGNED TO SAVE ON LITIGATIVE WASTE AS IT STANDS NO ONE KNOWS HOW MANY ATTORNEYS DO WHAT HARVARD LAW DEAN ROBERT CLARK ARGUED RECENTLY IN THE FORDHAM LAW REVIEW THAT MORE LAWYERS DO TRANSACTIONAL AND COUNSELING WORK THAN DO LITIGATION BUT HE CITED NO DATA THE BAR HAS BEEN CHARY ABOUT BREAKING DOWN ITS MEMBERS BY SPECIALTY MR BORDWIN ACKNOWLEDGES ONE REASON ATTORNEYS MIGHT BE RELUCTANT TO DO RELATIONAL WORK THEY'RE LIKELY TO GET SUED AS HE DRYLY PUTS IT THE LEGAL PROFESSION WILL HAVE TO WORKOUT PROFESSIONAL LIABILITY RULES TO PERMIT A LAWYER TO WORK IN THIS MANNER WITHOUT SUBJECTING HIM/HERSELF TO A MALPRACTICE ACTION ANYONE WHO THOUGHT HE KNEW FROM A GRASP OF POLITICAL ECONOMY WHY LONGTERM INTEREST RATES WERE DECLINING THROUGH THE FIRST SEVERAL WEEKS OF THE CLINTON ADMINISTRATION HAD TO BE CAUGHT SHORT WHEN RATES SHOT UP LAST WEEK CLINTONOMICS HADN'T CHANGED IF ANYTHING ITS ARCHITECTS WERE EXUBERANT AS THEY WON THE DAY IN BOTH HOUSES OF CONGRESS ON THE BUDGET RESOLUTION SUDDENLY HOWEVER BOND BUYERS WERE SELLING NEITHER THOSE WHO ASCRIBED THE EARLIER BOND GAIN TO MR CLINTON'S MAGIC TOUCH WITH THE ECONOMY NOR THOSE WHO SAID IT WAS BECAUSE HE'D KNOCK GDP FLAT WOULD SEEM TO HAVE AN EXPLANATION MAYBE SOME TRADERS WERE READING THE FINE PRINT OF ALAN GREENSPAN'S CONGRESSIONAL TESTIMONY WHICH A JOURNAL EDITORIAL PUT IN LARGER TYPE YESTERDAY BUT THEN WHO SAYS THE FEDERAL RESERVE HAS MUCH SHORTRUN SAY OVER LONGTERM RATES I CALLED WILLIAM GROSS OF PACIFIC INVESTMENT MANAGEMENT OF NEWPORT BEACH BECAUSE HE MADE A BUNDLE FROM THE BOND RALLY BUT ADVISED IN LATE FEBRUARY TO TAKE A BREAK HE MUST KNOW SOMETHING WHAT MR GROSS KNOWS IS NOT TO TRACE TOO MUCH TO NEWS FROM WASHINGTON BUDGET DEFICITS HE RECOGNIZES HAVE NO NECESSARY CORRELATION TO LONG RATES NOT THAT WE EVEN KNOW WHICH WAY THE DEFICIT IS GOING UNDER MR CLINTON AT LEAST IT WORKS THE OTHER WAY THOUGH THE BOND MARKETS DISCIPLINE THE SPENDERS RIGHT DON'T COUNT ON THAT HOT LINE TO THE WHITE HOUSE SAYS MR GROSS AND BESIDES THE PRESIDENT PROPOSES AND CONGRESS DISPOSES I'VE NEVER KNOWN OR EXPERIENCED CONGRESS TO BE PARTICULARLY SENSITIVE TO INTEREST RATES OTHER THAN THE JAWBONING BY SEN PAUL SARBANES OR SOME OTHER CONGRESSMAN WHO WANTS TO MAKE A POINT WITH THEIR CONSTITUENCIES I DON'T THINK CONGRESS EVEN KNEW THERE WAS A BOND MARKET UNTIL CLINTON BROUGHT IT TO THEIR ATTENTION 9303300134 930330 CREDIT RATINGS S&P RAISES RATINGS ON COMMERCIAL PAPER OF MERRILL LYNCH & CO NEW YORK STANDARD & POOR'S CORP RAISED ITS RATINGS ON THE COMMERCIAL PAPER OF MERRILL LYNCH & CO AND SAID ITS RATINGS OUTLOOK ON THE COMPANY WAS CHANGED TO POSITIVE FROM STABLE S&P RAISED THE PAPER RATING TO SINGLEA1PLUS FROM SINGLEA1 AND THE RATINGS COMPANY SAID IT AFFIRMED ITS SINGLEAPLUS SENIOR DEBT AND SINGLEAMINUS PREFERRED STOCK RATINGS OF THE INVESTMENT BANKING AND SECURITIES COMPANY S&P SAID THE UPGRADE REFLECTS MERRILL'S SOUND LIQUIDITY MANAGEMENT PRACTICES AND CONTINUED STRENGTHENING OF ITS OPERATIONS IT SAID MERRILL'S DEPTH AND DIVERSITY WILL MINIMIZE LIQUIDITY RISKS EVEN UNDER ADVERSE MARKET CONDITIONS RENEWED ATTENTION TO COST CONTROLS INCREASES THE LIKELIHOOD THAT MERRILL LYNCH WHILE REMAINING SOMEWHAT VULNERABLE TO MARKET DOWNTURNS WILL PERFORM BETTER ACROSS CYCLES S&P SAID IT ADDED THAT WITH POWERFUL MARKET POSITIONS ON BOTH THE INSTITUTIONAL AND RETAIL SIDE OF ITS BUSINESS MERRILL LYNCH IS POSITIONED FOR A POSSIBLE UPGRADE OF ITS SENIOR DEBT RATING WITHIN THE NEXT ONE TO THREE YEARS 9303300133 930330 MARKETSCAN TV ADS BOOST NESTLE'S INFANT FORMULAS BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL THE INFANTFORMULA BUSINESS IS BOUNCING DESPITE YEARS OF FREQUENT CONSUMER AND PEDIATRICIAN BOYCOTTS INDUSTRY SALES SPURTED 97 IN 1992 TO 24 BILLION FROM 219 BILLION IN 1991 ACCORDING TO DATA COMPILED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE VOLUME INCREASED 35 TO 883 MILLION 16OUNCE CANS THE GROWTH SURPRISINGLY COMES JUST AS BREASTFEEDING IS INCREASING FOR THE FIRST TIME IN A DECADE PREVIOUSLY SALES OF FORMULA HAVE WAXED AND WANED WITH FADS IN PARENTING SURGING DURING THE 1950S WHEN NEW MOTHERS OF BABY BOOMERS WERE ENCOURAGED TO BOTTLEFEED SLUMPING IN LATER DECADES WITH THE RESURGENCE OF NATURAL FEEDING AND RISING AGAIN IN THE 1980S WHEN MANY CAREER MOTHERS RETURNED TO BOTTLE FEEDING ALTHOUGH INFANT FORMULA SEEMS DESTINED TO REMAIN A LIGHTNING ROD FOR POLITICAL AND REGULATORY HEAT THE INDUSTRY SHOWS NO SIGN OF RETREATING IN A DEPARTURE FROM LONGESTABLISHED PRACTICE IN WHICH FORMULA MAKERS MARKETED MAINLY TO HOSPITALS OR PEDIATRICIANS NEW BRANDS HAVE BEEN USHERED IN WITH TV AD CAMPAIGNS THAT DIRECTLY TARGET NEW MOTHERS THE ARRIVAL OF NEW PLAYERS THAT OF NESTLE SA IN PARTICULAR HAS TURNED THE ONCECLUBBY BUSINESS INTO A FREEFORALL THE PHARMACEUTICAL COMPANIES THAT HAVE DOMINATED INFANT FORMULA SINCE IT WAS INTRODUCED COMMERCIALLY IN 1921 LOST GROUND OR BARELY HELD THEIR OWN IN THE 12 MONTHS ENDED IN JANUARY SIMILAC THE NO 1 BRAND FROM ABBOTT LABORATORIES' ROSS LABS UNIT SLIPPED BY ONE PERCENTAGE POINT TO 38 OF THE MARKET ENFAMIL THE NO 2 BRAND FROM BRISTOLMYERS SQUIBB CO'S MEAD JOHNSON UNIT FELL THREE PERCENTAGE POINTS TO 20 THE THIRDRANKING BRAND ABBOTT'S ISOMIL WAS FLAT AT ABOUT 13 THE BIG WINNER HAS BEEN NESTLE A MAJOR PLAYER IN INFANT FORMULA OVERSEAS BUT A LATECOMER TO THE US MARKET IN 1989 NESTLE USA HAS MA SPLASH WITH TWO NEW PRODUCTS INTRODUCED NATIONALLY UNDER THE CARNATION BANNER CARNATION GOOD START FOR INFANTS UP TO 12 MONTHS OLD SAW SALES INCREASE 79 IN 1992 TO 56 MILLION OR 23 OF THE MARKET CARNATION FOLLOW UP FOR SIXTO12MONTHOLDS GREW 40 TO 54 MILLION FOR A MARKET SHARE ROUGHLY THE SAME AS GOOD START MEANWHILE TWO VENERABLE BRANDS FROM AMERICAN HOME PRODUCTS CORP'S WYETHAYERST LABORATORIES ARE SUDDENLY COMING ON STRONG WYETH'S SMA AND NURSOY BRANDS PERENNIALLY OVERSHADOWED BY THE BIG ABBOTT AND BRISTOLMYERS PRODUCTS LAST YEAR POSTED IMPRESSIVE GAINS SMA INTRODUCED IN 1921 AND THE OLDEST COMMERCIAL FORMULA ON THE MARKET SAW SALES INCREASE 60 TO 179 MILLION OR A 74 MARKET SHARE NURSOY'S SALES GREW 43 TO 78 MILLION OR 33 OF THE MARKET A WYETHAYERST SPOKESWOMAN SAYS THE INCREASES ARE THE RESULT OF A NEW PEDIATRIC MARKETING PROGRAM THAT CONCENTRATES ON PUSHING MANY PRODUCTS TO PEDIATRICIANS THE CATEGORY'S TURMOIL REFLECTS A REVOLUTION IN THE WAY FORMULA IS SOLD BECAUSE CUSTOMERS ARE CONSTANTLY OUTGROWING THE PRODUCT THE HOSPITAL MATERNITY WARD HAS LONG BEEN A CRITICAL ARENA FOR PROMOTIONAL ACTIVITY MANUFACTURERS START RECRUITING REPLACEMENT CUSTOMERS AT BIRTH BY PARTICIPATING IN HOSPITAL SAMPLING PROGRAMS NESTLE HOWEVER TOOK THE AUDACIOUS TACK OF SKIRTING MATERNITY WARDS AND PEDIATRICIANS ENTIRELY WHEN IT LAUNCHED GOOD START LABELING THE PRODUCT HYPOALLERGENIC NESTLE PITCHED IT DIRECTLY TO CONSUMERS WITH A TV AND PRINT ADVERTISING CAMPAIGN THE PLOY DREW OUTRAGE FROM CONSUMER ACTIVISTS WHO BELIEVE FORMULAS SHOULD BE CHOSEN ON THE BASIS OF DOCTORS' RECOMMENDATIONS RATHER THAN ADVERTISING THAT COUPLED WITH REPORTS THAT A SMALL NUMBER OF INFANTS WERE INDEED ALLERGIC TO THE PRODUCT EXACERBATED LONGSIMMERING CRITICISM OF NESTLE'S INFANTFORMULA MARKETING TACTICS IN DEVELOPING COUNTRIES TO QUELL THE CONTROVERSY NESTLE QUICKLY DROPPED THE HYPOALLERGENIC FROM GOOD START LABELS IN THE EARLY 1980S THE WORLD HEALTH ORGANIZATION DREW UP AN INTERNATIONAL CODE FOR INFANTFORMULA MARKETING CALLING FOR MAKERS TO REFRAIN FROM DISTRIBUTING HOSPITAL SAMPLES OR ADVERTISING DIRECTLY TO CONSUMERS BUT THE CODE FAILED TO WIN SUPPORT FROM REAGAN ADMINISTRATION OFFICIALS AND THE US MARKETPLACE HAS PROVED A RIPE TERRITORY FOR NEWCOMER NESTLE HOSPITALS RETALIATE BRISTOLMYERS HASN'T FARED AS WELL WITH A SIMILAR DIRECTTOCONSUMER MARKETING STRATEGY IT HAS USED WITH ITS GERBER BRAND FORMULA PRODUCED UNDER LICENSE FROM GERBER PRODUCTS CO THE GERBER FORMULA'S DOLLAR SALES OF 71 MILLION WERE FLAT IN THE 12MONTH PERIOD CONSUMER AND DOCTOR PROTESTS OVER GERBER'S TV ADS EVEN SPILLED OVER TO BRISTOLMYERS'S ESTABLISHED BRAND ENFAMIL FOR SOME TIME AFTER THE GERBER ADS BROKE IN 1989 PEDIATRICIANS AND HOSPITALS RETALIATED BY SHUTTING ENFAMIL OUT OF MATERNITY WARDS NEITHER GERBER NOR THE CARNATION BRANDS PARTICIPATE IN THE HOSPITAL SAMPLING PROGRAMS BRISTOLMYERS SAYS THAT WHILE SOME PEDIATRICIANS REMAIN DISPLEASED WITH THE GERBER ADS MUCH OF THE HOSPITAL VOLUME ENFAMIL LOST TO BOYCOTTS HAS RETURNED AT THE ROOT OF ACTIVISTS' ANGER IS THE BELIEF THAT ANY CONSUMER ADVERTISING FOR FORMULAS DISCOURAGES MOTHERS FROM BREASTFEEDING ALTHOUGH THE COMPANIES SAY THEY ARE CAREFUL TO PUSH THE MESSAGE THAT BREAST MILK IS BEST MANY DOCTORS REMAIN UNEASY A LOT OF WHAT THEY DO TO ENCOURAGE BREASTFEEDING IS LIP SERVICE SAYS TOM PHILPOT A PEDIATRICIAN IN ROCKLEDGE FLA THEIR LONGTERM INTEREST IS TO SELL FORMULA DR PHILPOT SAYS HE SEES THE COMPETITION HEATING UP SOME PATIENTS HAVE REPORTED RECEIVING FREE FORMULA SAMPLES BEFORE THEY EVEN GIVE BIRTH FORMULA ADS CONTAIN STANDARD DISCLAIMERS POINTING OUT THAT BREAST MILK IS SUPERIOR FOR INFANTS BUT CRITICS SAY THEY DON'T GO FAR ENOUGH IN EXPLAINING THAT NO PRODUCT MADE FROM COW OR SOY MILK CAN ADEQUATELY REPLICATE HUMAN BREAST MILK A PRINT AD FOR NESTLE'S GOOD START FOR EXAMPLE CALLS BREAST MILK THE IDEAL FIRST FOOD FOR INFANTS BUT IT HASTENS TO ADD IF YOU AND YOUR DOCTOR DECIDE TO USE A FORMULA IT'S NICE TO KNOW THERE'S ONE WITH A GENTLE DIFFERENCE LAURIE MACDONALD NESTLE USA'S VICE PRESIDENT FOR COMMUNICATIONS SAYS THE GOOD START ADS HAVE UNDOUBTEDLY HELPED SPUR SALES SHE ALSO ATTRIBUTES SOME OF THE GROWTH TO NESTLE'S RECENTLY WINNING A CONTRACT TO PROVIDE INFANT FORMULA TO WESTERN STATES AND TRIBAL COUNCILS UNDER THE US DEPARTMENT OF AGRICULTURE'S WOMEN INFANTS AND CHILDREN ASSISTANCE PROGRAM THE FEDERAL TRADE COMMISSION RECENTLY CHARGED THE THREE BIGGEST FORMULA MAKERS WITH BIDRIGGING ON WIC CONTRACTS BRISTOLMYERS AND AMERICAN HOME HAVE SETTLED WITH THE GOVERNMENT WITHOUT ADMITTING WRONGDOING ABBOTT LABS IS CONTESTING THE CHARGES AND A TRIAL IS SET FOR JUNE BUT JUST AS CRUCIAL TO NESTLE'S SALES SURGE IN MS MACDONALD'S VIEW IS AN ATTITUDINAL SHIFT THAT IS SURE TO TROUBLE MANY PHYSICIANS MOTHERS SHE SAYS ARE BECOMING INCREASINGLY INVOLVED IN THE INFANTFORMULA DECISION WHETHER THEY SHOULD USE FORMULA OR BREASTFEED 9303300132 930330 INTERNATIONAL MITTERRAND NAMES MODERATE BALLADUR PRIME MINISTER BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS JUST 24 HOURS AFTER THE POLLS CLOSED ON THE RIGHT'S CRUSHING LEGISLATIVE ELECTION VICTORY FRENCH PRESIDENT FRANCOIS MITTERRAND MOVED TO DEFUSE POTENTIAL CONFLICT BY NAMING MODERATE GAULLIST EDOUARD BALLADUR PRIME MINISTER MR BALLADUR 63 YEARS OLD IS A NONCONFRONTATIONAL FORMER FINANCE MINISTER WHO STOUTLY BACKS EUROPEAN INTEGRATION AND FREEMARKET ECONOMICS HE IS EXPECTED TO NAME A NEW GOVERNMENT AS SOON AS TOMORROW AND TO HOLD HIS FIRST CABINET MEETING BY THE END OF THE WEEK HIS GOVERNMENT IS EXPECTED TO COHABIT UNEASILY WITH THE SOCIALIST PRESIDENT WHOSE TERM RUNS UNTIL 1995 IN A STATEMENT AFTER MEETING WITH THE PRESIDENT MR BALLADUR SAID HE WOULD QUICKLY FORM A TIGHTLY ORGANIZED GOVERNMENT OUR COUNTRY IS FACING AN ECONOMIC CRISIS HE SAID ALL OUR EFFORTS MUST BE MOBILIZED TO OVERCOME IT SEVERAL GAULLIST LEADERS HAVE DEMANDED THAT MR MITTERRAND STEP ASIDE AFTER THE LOPSIDED RIGHTWING VICTORY WHICH LEFT THE RIGHT WITH 484 OF THE NATIONAL ASSEMBLY'S 577 SEATS BUT MR BALLADUR A RESERVED MAN WHO WEARS THREEPIECE SUITS WITH THE JACKET BUTTONED CAREFULLY AVOIDED ANTAGONISTIC REMARKS HARDLINERS ON THE RIGHT GRUMBLE THAT INSTEAD OF TRYING TO FORCE MR MITTERRAND TO RESIGN IN FAVOR OF EARLY PRESIDENTIAL ELECTIONS MR BALLADUR IS MORE LIKELY TO ESTABLISH A WORKING RELATIONSHIP WITH HIM AIDES TO GAULLIST PARTY LEADER JACQUES CHIRAC SAY MR CHIRAC WOULD EXPECT TO WIN A PRESIDENTIAL ELECTION IF IT WERE HELD NOW MR BALLADUR A CHIRAC ALLY WILL FEEL PRESSURE FROM HIS FRIENDS TO BE UNCHARACTERISTICALLY TOUGH WITH THE PRESIDENT IN SETTING GOVERNMENT POLICIES BUT MR BALLADUR SHARES THE PRESIDENT'S SUPPORT FOR A STRONG EUROPE AND A STRONG FRANC HE ALSO HAS SAID PRIVATELY THAT ONE OF THE RIGHT'S BIG ERRORS WHEN IN POWER FOM 1986 THROUGH 1988 WAS FAILING TO PAY ENOUGH ATTENTION TO SOCIAL ISSUES HE IS EXPECTED TO TEMPER HIS FREEMARKET GOALS AND FOCUS PRIMARILY ON STIMULATING THE ECONOMY AND REDUCING UNEMPLOYMENT MR BALLADUR HAS REPEATEDLY WARNED THAT HE HASN'T ANY MIRACLE SOLUTIONS THAT FRANCE'S 105 UNEMPLOYMENT WILL GET WORSE THIS YEAR REGARDLESS OF WHAT HE DOES AND THAT NEW ECONOMIC POLICIES WILL TAKE YEARS TO PUT IN PLACE 9303300131 930330 AMSOUTH PLANS ACQUISITION BIRMINGHAM ALA AMSOUTH BANCORPORATION AGREED TO ACQUIRE CLOSELY HELD ORANGE BANKING CORP ORLANDO FLA FOR ABOUT 44 MILLION IN STOCK AMSOUTH SAID IT WOULD ISSUE ROUGHLY 13 MILLION OF ITS SHARES TO ACQUIRE THE FLORIDA BANKING CONCERN WHICH HAS 20 OFFICES IN CENTRAL FLORIDA AND HAD ASSETS OF 377 MILLION AT THE END OF 1992 AMSOUTH SAID THE PURCHASE PRICE AMOUNTS TO ABOUT 190 TIMES ADJUSTED BOOK VALUE AMSOUTH WHICH HAS ASSETS OF ABOUT 107 BILLION SAID THE TRANSACTION IS SUBJECT TO APPROVAL BY REGULATORS AND ORANGE BANKING SHAREHOLDERS 9303300130 930330 BANC ONE UNIT GETS RTC JOB COLUMBUS OHIO BANC ONE CORP SAID ITS BANC ONE MANAGEMENT AND CONSULTING CORP UNIT WON A CONTRACT TO SERVICE 617 MILLION IN NONPERFORMING AND SUBPERFORMING COMMERCIAL MORTGAGE LOANS OF THE RESOLUTION TRUST CORP THE BANK HOLDING COMPANY SAID THE OPENENDED CONTRACT TO MANAGE THE RTC MORTGAGE TRUST 1993N1 IS EXPECTED TO GENERATE ABOUT 74 MILLION IN BASE FEES PLUS INCENTIVES IN ITS FIRST THREE YEARS 9303300129 930330 TECHNOLOGY SUN TO DESIGN SOLARIS VERSIONS FOR VARIOUS PCS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL SUN MICROSYSTEMS INC CHALLENGING MICROSOFT CORP IN SEEKING TO BECOME A MAJOR SOFTWARE SUPPLIER SAID IT WILL DEVELOP A VERSION OF ITS OPERATING SYSTEM SOFTWARE FOR A COMPUTER BEING JOINTLY DEVELOPED BY APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC THE MOUNTAIN VIEW CALIF COMPUTER MAKER ALSO SAID IT WILL BEGIN SHIPPING IN MAY A VERSION OF ITS SOLARIS OPERATING SYSTEM SOFTWARE THAT WILL WORK WITH PERSONAL COMPUTERS USING MICROPROCESSORS MADE BY INTEL CORP AS ITS BRAINS THE ANNOUNCEMENTS EXEMPLIFY SUN'S CONTINUING STRATEGY TO INCREASE SALES OF ITS SOFTWARE PRODUCTS BY MAKING THEM AVAILABLE FOR USE ON VARIOUS MAKES OF COMPUTERS IN THE PAST SUN'S SOFTWARE ONLY WORKED WITH SUN'S COMPUTER WORKSTATIONS WHICH ARE POWERFUL COMPUTERS FAVORED BY ENGINEERS AND SCIENTISTS BUT STICKING TO A STRATEGY OF OFFERING PROPRIETARY PRODUCTS HAS BADLY HURT SOME COMPUTER COMPANIES BECAUSE CUSTOMERS FOUND THEY COULD FIND GREATER PRICE AND FEATURE SELECTION FROM COMPUTER SYSTEMS AND SOFTWARE MADE BY COMPANIES WHO OFFER OPEN SYSTEMS THAT IS MADE WITH COMPONENTS THAT CAN BE USED INTERCHANGEABLY THE NEW STRATEGY ALSO MEANS SUN'S SOFTWARE CUSTOMERS NO LONGER NEED TO BUY SUN WORKSTATIONS BUT CAN OPT TO BUY FROM A VARIETY OF PCS SCOTT MCNEALY SUN'S CHIEF EXECUTIVE OFFICER SAID HE DOESN'T SEE SUN'S HARDWARE BUSINESS BEING HURT BECAUSE HE SEES ENOUGH ROOM IN THE MARKET FOR GROWTH THIS IS THE COUNTERINTUITIVE WIN WE KEEP EXPLOITING HE SAID MR MCNEALY DECLINED TO ESTIMATE SALES OF ITS NEW SOFTWARE ERIC SCHMIDT PRESIDENT OF SUN'S TECHNOLOGY ENTERPRISES SAID THAT THE SOLARIS VERSION CALLED SOLARIS X86 DESIGNED FOR INTEL MICROPROCESSORBASED COMPUTERS WILL RUN APPLICATION PROGRAMS DEVELOPED FOR MICROSOFT WINDOWS SOFTWARE HE SAID A TEAM OF SUN ENGINEERS CAREFULLY DEVELOPED WITHOUT USING ANY MICROSOFT PROPRIETARY DATA A METHOD THAT ALLOWS THOSE PROGRAMS TO WORK WITH SOLARIS JONATHAN LAZARUS A MICROSOFT VICE PRESIDENT AND GENERAL MANAGER SAID HE THOUGHT IT WAS EXTREMELY DIFFICULT FOR ANY COMPANY TO DEVELOP SUCH SOFTWARE AS WE CONTINUE TO EXTEND WINDOWS IT IS GOING TO BE VERY DIFFICULT FOR ANYONE TO KEEP UP WITH US HE SAID 9303300128 930330 NOBLE AFFILIATES TO REDEEM DEBT ARDMORE OKLA NOBLE AFFILIATES INC SAID IT PLANS TO REDEEM ALL OF ITS 725 CONVERTIBLE DEBENTURES DUE IN 2012 ON MAY 5 TO REDUCE CAPITAL COSTS THE OIL AND NATURALGAS EXPLORATION AND PRODUCTION COMPANY SAID THE REDEMPTION PRICE INCLUDING ACCRUED INTEREST WILL BE 106731 FOR EACH 1000 PRINCIPAL AMOUNT THE TOTAL PRINCIPAL AMOUNT OF THE DEBENTURES IS 100 MILLION THE COMPANY SAID THE COMPANY ADDED THAT DEBENTURE HOLDERS MAY CONVERT EACH 1000 IN PRINCIPAL AMOUNT INTO NOBLE COMMON SHARES AT A CONVERSION PRICE OF 19625 A SHARE IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY NOBLE SHARES CLOSED AT 22625 UP 125 CENTS 9303300127 930330 TECHNOLOGY INTERNEURON UNIT DISCOVERS EARLIEST LINEAGE OF CELLS LEXINGTON MASS INTERNEURON PHARMACEUTICALS INC SAID RESEARCHERS AT ITS MAJORITYOWNED PROGENITOR INC UNIT HAVE DISCOVERED AND CHARACTERIZED A STEM CELL IN MICE THAT IS BELIEVED TO BE THE EARLIEST LINEAGE OF CELLS FOR BLOOD AND IMMUNE SYSTEMS STEM CELL RESEARCHERS HAVE BEEN SEEKING THE EARLIEST LINEAGE OF CELLS FOR VARIOUS TISSUES IN THE HOPE THAT THEIR DISCOVERY WOULD ALLOW DOCTORS TO EVENTUALLY ADDRESS DEFICIENCIES IN THOSE SYSTEMS GLENN L COOPER PRESIDENT OF PROGENITOR SAID WE BELIEVE THE PROGENITOR STEM CELL IS UNIQUE AND DIFFERENT FROM THE ADULT BONE MARROW STEM CELL PREVIOUSLY DESCRIBED IN THE SCIENTIFIC LITERATURE IN THAT IT IS A DEVELOPMENTALLY EARLIER CELL IN A STUDY PRESENTED AT THE FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY IN NEW ORLEANS PROGENITOR RESEARCHERS SAID TRANSPLANTATION WITH THESE CELLS LED TO THE SURVIVAL OF MICE WITH SEVERELY SUPPRESSED IMMUNE SYSTEMS PROGENITOR SAID THE CELLS EVENTUALLY MIGHT BE USED IN HUMANS AS DONORS IN BONE MARROW TRANSPLANTATION CARRIER CELLS FOR GENE THERAPY AND A SOURCE FOR RED BLOOD CELL TRANSFUSIONS 9303300126 930330 INTERNATIONAL US WILL DELAY TRADE SANCTIONS AGAINST EUROPE BY JULIE WOLF AND CHARLES GOLDSMITH STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS THE US DELAYED FOR AT LEAST THREE WEEKS THE IMPOSITION OF TRADE SANCTIONS ON THE EUROPEAN COMMUNITY BUT STRESSED THAT DIFFICULT NEGOTIATIONS REMAIN IN A BID TO AVERT A TRANSATLANTIC TRADE WAR OVER GOVERNMENT CONTRACTS THE US MOVE FOLLOWED NEW PROPOSALS PUT FORWARD BY THE COMMUNITY IN TALKS BETWEEN SIR LEON BRITTAN THE EC'S COMMISSIONER FOR FOREIGN TRADE AND US TRADE REPRESENTATIVE MICKEY KANTOR MR KANTOR SAID THE SANCTIONS WERE DELAYED AFTER SIR LEON AGREED TO BEGIN PREPARATIONS FOR WITHDRAWING PROVISIONS THAT FAVOR EC COMPANIES IN PUBLIC CONTRACTS ALTHOUGH THOSE PROVISIONS WOULD BE FORMALLY WITHDRAWN ONLY IF AN AGREEMENT IS REACHED TO SCRAP THE US SANCTIONS THE NEW EC OFFER WHICH COVERED GOVERNMENT PURCHASING AND OVERALL MARKET ACCESS INCLUDES PROPOSALS FOR REDUCING TARIFFS ON A RANGE OF INDUSTRIAL GOODS WHICH ARE AIMED AT JUMPSTARTING THE URUGUAY ROUND NEGOTIATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHERE THE US AND EC ARE DEMANDING GREATER ACCESS TO EACH OTHER'S MARKET MR KANTOR DESCRIBED THE LATEST OFFER AS CONSTRUCTIVE BUT NOT OBVIOUSLY ACCEPTABLE IN ITS PRESENT FORM YESTERDAY'S TALKS FOLLOWED WEEKS OF TRANSATLANTIC SNIPING OVER A SERIES OF TRADE PROBLEMS THAT HAVE LED TO FEARS IN THE EC THAT THE NEW CLINTON ADMINISTRATION IS HEADING FOR PROTECTIONISM BOTH SIDES INDICATED THE ATMOSPHERE OF THE DISCUSSIONS HAD IMPROVED SANCTIONS THREATENED BY THE US OVER BUY EUROPEAN PROVISIONS IN EC LEGISLATION HAD BEEN SLATED TO TAKE EFFECT ON THURSDAY AFFECTING AS MUCH AS 50 MILLION A YEAR IN EC BIDS THE DELAY IN IMPLEMENTING THE SANCTIONS WAS DESIGNED TO ALLOW FURTHER TALKS CULMINATING IN ANOTHER MEETING BETWEEN SIR LEON AND MR KANTOR IN WASHINGTON ON APRIL 1920 WE HAVE MOVED FORWARD AND I AM A PRACTICAL PERSON MR KANTOR TOLD REPORTERS SEVERAL HOURS AFTER HIS MEETING WITH SIR LEON STILL HE SAID I'M NEITHER OPTIMISTIC NOR PESSIMISTIC ABOUT THE ABILITY OF THE TWO SIDES TO REACH AGREEMENT WE ARE TRYING TO MAKE AS MUCH PROGRESS BILATERALLY WITH AN EYE TO MAKING MORE GLOBAL PROGRESS SIR LEON SAID AT A JOINT NEWS CONFERENCE WITH MR KANTOR THE EC COMPLAINS THAT THE US'S BUY AMERICAN LEGISLATION IS MORE RESTRICTIVE THAN THE COMMUNITY'S OWN RULES EC COMPANIES ARE ESPECIALLY ANXIOUS TO PENETRATE THE US MARKET FOR TRANSPORTATION EQUIPMENT WHILE THE US WANTS GREATER ACCESS TO THE EC'S MARKETS FOR TELECOMMUNICATIONS AND HEAVY ELECTRICAL EQUIPMENT SUCH AS TURBINES AND GENERATING SYSTEMS THE DISPUTED PROVISION IN EC LEGISLATION GIVES COMMUNITY COMPANIES A 3 ADVANTAGE IN PUBLIC CONTRACT BIDS AND ALLOWS UTILITIES TO REJECT BIDS THAT DON'T MEET A 50 LOCALCONTENT REQUIREMENT THE US HAS SIMILAR BUY AMERICAN PROVISIONS WITH A BASIC PREFERENCE OF 6 FOR US COMPANIES THE US AGREED TO AN EC PROPOSAL FOR AN INDEPENDENT STUDY TO COMPARE EACH SIDE'S OPENNESS TO FOREIGN SUPPLIERS IN PUBLIC PROCUREMENT WITHOUT SUCH A STUDY SAID MR KANTOR SIMILAR PROBLEMS WOULD ARISE IN THE FUTURE EVEN IF THE CURRENT SQUABBLE IS RESOLVED 9303300125 930330 PATRICK PETROLEUM MERGER PACT JACKSON MICH PATRICK PETROLEUM CO SAID IT EXECUTED A MERGER AGREEMENT WITH AMERICAN NATIONAL PETROLEUM CO IN A DEAL VALUED AT 35 MILLION UNDER THE AGREEMENT EACH SHARE OF THE COMMON STOCK OF AMERICAN NATIONAL PETROLEUM WILL BE CONVERTED INTO THE RIGHT TO RECEIVE 340 IN CASH AND 260 OF PATRICK COMMON STOCK FOR AN AGGREGATE 6 PURCHASE PRICE AMERICAN NATIONAL HAS 584 MILLION SHARES OUTSTANDING 9303300124 930330 BUSINESS BRIEF CONE MILLS CORP FIRMS TO ACQUIRE 20 STAKE IN MEXICAN MAKER OF DENIM CONE MILLS CORP SAID IT AGREED IN PRINCIPLE TO ACQUIRE A 20 STAKE IN COMPANIA INDUSTRIAL DE PARRAS SA MEXICO'S LARGEST DENIM MAKER AND TO FORM A JOINT VENTURE TO BUILD A DENIM MANUFACTURING PLANT IN MEXICO CONE MILLS BASED IN GREENSBORO NC SAID THE TRANSACTION WILL GIVE IT A PROMINENT PARTNER TO PENETRATE THE GROWING MEXICAN MARKET AND PROVIDE A GATEWAY TO CENTRAL AND SOUTH AMERICA CONE MILLS WILL PAY ABOUT 21 MILLION FOR ITS STAKE AND WILL SHARE EQUALLY IN THE COST OF THE JOINT VENTURE FACILITY WHICH IS EXPECTED TO BE 80 MILLION TO 100 MILLION CONE MILLS SAID IT DOESN'T EXPECT THE MOVE INTO MEXICO TO HURT JOBS AT ITS DENIM FACILITIES IN THE US RATHER IT SAID IT INTENDS TO CONTINUE TO EXPAND ITS CAPACITY TO PRODUCE DENIM DOMESTICALLY BUT LABOR UNIONS CRITICIZED THE MOVE THIS SHOWS THE BEGINNING OF WHAT UNIONS HAVE BEEN SAYING ALL ALONG ABOUT THE THE NORTH AMERICAN FREE TRADE AGREEMENT SAID BRUCE RAYNOR SOUTHERN REGIONAL DIRECTOR OF THE AMALGAMATED CLOTHING & TEXTILE WORKERS UNION 9303300123 930330 LETTERS TO THE EDITOR THIS IS A FAILING HEALTH CARE SYSTEM WHEN IT WAS ANNOUNCED THAT DEFENSE SECRETARY LES ASPIN WOULD BE FITTED WITH A PACEMAKER PRESIDENT CLINTON WAS ASKED ABOUT THE OUTLOOK FOR MR ASPIN'S SWIFT RETURN TO WORK HIS RESPONSE WAS WELL ANYBODY CAN HAVE A PACEMAKER INDEED PERHAPS MR CLINTON SHOULD PAUSE TO CONSIDER WHY HE CAN SO ASSUREDLY MAKE SUCH A STATEMENT I WONDER IF HE HAS GIVEN ANY THOUGHT TO HOW OUR FAILING HEALTH CARE SYSTEM CAN MAKE THIS KIND OF PROCEDURE ALMOST COMMONPLACE MR ASPIN HAS THE SERVICES OF THE MOST HIGHLY TRAINED SURGEONS IN THE WORLD HIS PACING DEVICE IS OF THE MOST MODERN TECHNOLOGY COMING FROM A COMPANY THAT OPERATES AT A PROFIT AND EMPLOYS TEAMS OF DEDICATED SCIENTISTS AND ENGINEERS ANY DISCOMFORT WILL BE EASED BY CAREFULLY ADMINISTERED MEDICINES THAT INCIDENTALLY MAY HAVE BEEN DEVELOPED BY THE VERY DRUG COMPANIES WHOSE PROFITS HAVE BEEN ASSAILED BY THE PRESIDENT ODDS ARE MOST OF THE EXPENSE OF HIS OPERATION WILL BE PAID FOR BY A PRIVATE INSURANCE COMPANY THAT IS SOLVENT BECAUSE IT PRUDENTLY MANAGES THE MONEY IT TAKES IN WITH WHAT IT HAS PROMISED TO PAY OUT SOMETHING THAT CANNOT BE SAID OF OUR GOVERNMENT AND HE RECEIVED THIS TREATMENT WITHOUT DELAY IN VIEW OF THIS ADMINISTRATION'S DETERMINATION TO SOLVE OUR HEALTH CARE CRISIS VIA DRASTIC GOVERNMENT INTERVENTION MR ASPIN COULD HAVE VOLUNTEERED TO HAVE HIS OPERATION PERFORMED IN A COUNTRY WHOSE HEALTH CARE SYSTEM IS MORE FAVORED BY HILLARY CLINTON'S TASK FORCE MR ASPIN COULD HAVE SUBJECTED HIMSELF TO THE NORMAL WAITING PERIOD FOR SUCH PROCEDURES IN THAT COUNTRY NO PULLING RANK OF A HIGH GOVERNMENT OFFICIAL JUST AVERAGE CITIZEN ASPIN HIS PACING DEVICE AND PAINRELIEF MEDICINES WOULD BE LIMITED TO THOSE THAT ARE MANDATED BY THE GOVERNMENT AND THAT ARE PRODUCED UNDER STRICT PRICE CONTROLS HIS DOCTORS OF COURSE WOULD PROVIDE THEIR SERVICES AT FROZENFEE SCHEDULES AND HIS RECOVERY TREATMENTS WOULD BE ONLY THOSE AUTHORIZED BY THE GOVERNMENT MR ASPIN'S WILLINGNESS TO PARTICIPATE IN THIS EXPERIMENT COULD HAVE PROVIDED INVALUABLE INSIGHT INTO THE CLINTON HEALTH CARE FORCE 9303300121 930330 OHIO NUCLEAR PLANT IS IDLED PERRY OHIO A NUCLEAR POWER PLANT OPERATED HERE BY CLEVELAND ELECTRIC ILLUMINATING CO WAS SHUT DOWN AFTER A WATER PIPE BROKE THE PLANT IS OWNED BY CLEVELAND ELECTRIC AND OTHER UNITS OF CENTERIOR ENERGY CORP AS WELL AS UNITS OF DQE AND OHIO EDISON CO A SPOKESWOMAN FOR THE PLANT SAID SHE DIDN'T KNOW WHEN IT WOULD REOPEN OR WHAT THE OUTAGE WOULD COST THE BROKEN PIPE WASN'T PART OF THE PLANT'S SAFETYRELATED EQUIPMENT AND DIDN'T CONTAIN RADIOACTIVE WATER OFFICIALS SAID THE PLANT IS CENTERIOR'S LARGEST 9303300120 930330 CLEARCUT FORESTRY LESSON ON FILM BY JOHN HOOD RALEIGH NC LAST NIGHT WASN'T A BIG ONE FOR LAST OF THE MOHICANS WHICH WASN'T UP FOR ANY OF THE MAJOR ACADEMY AWARDS BUT THE FILM NOW OUT ON VIDEO SHOULD BE MUSTVIEWING FOR PARTICIPANTS IN THE COMING TIMBER SUMMIT PARTICULARLY CRITICS OF ALL CLEARCUTTING OF FORESTS REMEMBER THE DRAMATIC SCENES WHEN FRENCH AND INDIAN SOLDIERS LAID SIEGE TO FORT WILLIAM HENRY AMID A THICK FOREST OF LOBLOLLY PINES AND HARDWOODS LESS THICK IN AREAS WHERE ARTILLERY SHELLS WERE SUPPOSED TO HAVE LANDED THE BRIGHTLY UNIFORMED EUROPEANS AND THEIR WARPAINTED ALLIES FIRED ON THE BRITISH FORT OR BIVOUACKED IN THE BRUSH OR CHASED THE FILM'S HEROES AS THEY MADE THEIR HARROWING ESCAPE IN CANOES IN DIRECTOR MICHAEL MANN'S WONDERFUL ADAPTATION OF THE JAMES FENIMORE COOPER CLASSIC THE BREATHTAKING SCENERY WAS AS MUCH A STAR AS WAS DANIEL DAYLEWIS MR MANN AND HIS PRODUCERS HAD SEARCHED THE ENTIRE EASTERN HALF OF THE US TO FIND A SUITABLE BACKDROP FOR THEIR EPIC AND FINALLY DECIDED TO SHOOT MOST OF THE MOVIE IN NORTH CAROLINA'S MOUNTAINS MR MANN WAS AIMING FOR REALISM FOR AN ACCURATE DEPICTION OF WHAT THE VIRGIN FORESTS OF THE UPPER HUDSON VALLEY LOOKED LIKE IN 1757 HE FOUND THE STAGE FOR THE SIEGE OF FORT HENRY IN A CORPORATEMANAGED PRIVATE FOREST ON NORTH CAROLINA'S LAKE JAMES EVERY TREE YOU SEE IN THOSE SCENES IS BETWEEN NINE AND 22 YEARS OLD IN ADDITION THEY WERE ALL THE PRODUCT OF CLEARCUTTING FREEMARKET ENVIRONMENTALISTS HAVE BEEN ARGUING FOR YEARS THAT PRIVATE MANAGEMENT OF RESOURCES SUCH AS FORESTS GENERATES BETTER RESULTS THAN PUBLIC MANAGEMENT FOR THE SIMPLE REASON THAT PRIVATE OWNERS SEEK A MAXIMUM RETURN ON THEIR INVESTMENT IN THE LONG RUN IT'S CRAZY FOR A PRIVATE OWNER TO STRIP HIS LAND OF EVERY TREE WITHOUT REPLANTING THEM AND INDEED THE EVIDENCE SHOWS THAT LUMBER COMPANIES AND OTHER PRIVATE OWNERS DO REPLANT MILLIONS OF TREES A YEAR IN NORTH CAROLINA ALONE THERE ARE MORE ACRES OF COMMERCIAL FOREST THAN THERE WERE IN 1938 PINE FORESTS ARE GROWING IN SIZE NOT SHRINKING EVEN AS THE STATE'S FORESTRELATED INDUSTRIES RANK FIRST OR SECOND IN THE COUNTRY IN VIRTUALLY EVERY KIND OF LUMBER WOOD PRODUCT OR FURNITURE SOMEHOW THE NOTION THAT A RELATIVELY YOUNG FOREST COULD PLAY THE ROLE OF AN OLDGROWTH FOREST OF THE 18TH CENTURY FRONTIER SEEMS HARD FOR PEOPLE TO BUY IN NORTH CAROLINA THE PROMINENCE OF THE BEAUTIFUL MOUNTAIN RANGES AND PINE FORESTS IN LAST OF THE MOHICANS GAVE ENVIRONMENTALISTS AN OPPORTUNITY TO CROW SEE THEY SAID FORESTS DON'T HAVE TO BE CUT DOWN TO BE PROFITABLE WE CAN FILM THEM AND BRING TOURISTS TO THEM IF WE ALLOW GREEDY COMPANIES TO CLEARCUT OUR PRECIOUS TREES WE'LL LOSE THIS ALLIMPORTANT RESOURCE YES THESE ENVIRONMENTALISTS WOULD FLUNK FRESHMAN ECONOMICS BUT THEIR BASIC FACTS AREN'T EVEN RIGHT GEORGE MOYERS IS A FORESTER WITH CRESCENT RESOURCES A SUBSIDIARY OF THE CHARLOTTEBASED DUKE POWER CO HE'S MANAGED CRESCENT FORESTS LIKE THE LAKE JAMES PROPERTY FOR 30 YEARS MR MOYERS POINTED OUT IN AN INTERVIEW WITH DUKE POWER NEWS THAT CLEARCUTTING IS AN APPROPRIATE PRACTICE FOR TREES THAT ARE SHADE INTOLERANT SUCH AS WHITE AND YELLOW PINES THEY GROW BEST IN OPEN SUNLIGHT THE POINT I WOULD MAKE TO OPPONENTS OF CLEARCUTTING IS THIS HE SAYS THESE FILM PRODUCERS SELECTED ONE OF THE MOST INTENSIVELY MANAGED FORESTS IN THE COUNTRY TO MAKE THIS FILM AND THEY SELECTED IT FOR ITS SCENIC AND NATURAL BEAUTY WHEN WE HARVESTED THE OLD TIMBER STANDS AND PLANTED THE NEW ONES IT CHANGED THE SCENERY NO DOUBT ABOUT IT BUT THE BEAUTY OF THIS SITE IN THE MOVIE SHOWS YOU JUST HOW QUICKLY THE NEW FOREST COMES BACK BETTER THAN EVER CLEARCUTTING ISN'T A GOOD IDEA IN OTHER KINDS OF FORESTS BUT A BLANKET CONDEMNATION OF THE PRACTICE IS SILLY AND EMPLOYING THE APPROPRIATE TECHNIQUE FOR HARVESTING TREES IN PARTICULAR AREAS IS SOMETHING THAT PRIVATE COMPANIES CAN DO MUCH BETTER THAN SOME KIND OF STATE OR FEDERAL PLANNING REGIME THEY HAVE ECONOMIC INCENTIVES TO MAKE THE RIGHT DECISION WHILE PUBLIC MANAGERS FACE EITHER SUBSIDY DISTORTIONS OF THE MARKET OR PRESSURE FROM THE EXTREME ANTILOGGING LOBBY MR MOYERS SAYS THE FILM'S CREW MEMBERS JUST ABOUT DROPPED THEIR TEETH WHEN HE TOLD THEM THEY WERE STANDING ON LAND THAT HAD BEEN CLEARCUT AND REPLANTED SPEAKING OF THAT CREW WHAT ABOUT THE ENVIRONMENTAL DAMAGE OF SPENDING 11 WEEKS BUILDING A REPLICA OF FORT HENRY IN THE FOREST ONLY TO TEAR IT DOWN AFTERWARD MR MOYERS REPORTS THAT FASTGROWING LOBLOLLY PINES ARE ALREADY ERASING THE CLEARING MADE FOR THE FORT BACK IN 1991 GIVE IT SEVEN YEARS AND YOU WON'T BE ABLE TO TELL ANYTHING HAPPENED THERE HE SAYS GO OUT AND RENT LAST OF THE MOHICANS EITHER FOR A FIRST VIEWING OR A SECOND HELPING DRINK IN ALL THAT BEAUTIFUL SCENERY AND NEVER FEEL GUILTY ABOUT PAPER PRODUCTS AGAIN MR HOOD IS RESEARCH DIRECTOR OF THE JOHN LOCKE FOUNDATION A STATE POLICY THINK TANK IN RALEIGH NC AND A CONTRIBUTING EDITOR OF REASON MAGAZINE 9303300119 930330 TECHNOLOGY VISUAL CYBERNETICS PURCHASE NEW YORK VISUAL CYBERNETICS CORP SAID IT PURCHASED OWNERSHIP RIGHTS TO AN ELECTRONIC MAIL PROGRAM THAT SERVES BOTH MICROSOFT WINDOWS AND WINDOWS NTBASED MESSAGING SOFTWARE FROM THRESHOLD CORP TERMS WEREN'T DISCLOSED VISUAL CYBERNETICS SAID IT EXPECTS REVENUE FOR THE PROGRAM ENOTE TO REACH 2 MILLION IN THE NEXT 18 MONTHS GROWING TO 5 MILLION ANNUALLY BY 1995 9303300117 930330 WHO'S NEWS CLINTON PICKS JOHNSON OF WESTERN DIGITAL FOR TOP POST AT GSA WASHINGTON ROGER W JOHNSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WESTERN DIGITAL CORP WAS NOMINATED BY PRESIDENT CLINTON TO HEAD THE GENERAL SERVICES ADMINISTRATION AN INDEPENDENT GOVERNMENT AGENCY MR JOHNSON 58 YEARS OLD IS EXPECTED TO REMAIN AT THE IRVINE CALIF COMPUTER DISK DRIVE COMPANY PENDING SENATE CONFIRMATION OF THE NOMINATION IF HE IS CONFIRMED CHARLES A HAGGERTY PRESIDENT AND CHIEF OPERATING OFFICER IS EXPECTED TO ASSUME THE HELM AT WESTERN DIGITAL I WOULD BE SURPRISED IF CHUCK HAGGERTY IS NOT MY SUCCESSOR I WILL MAKE THAT RECOMMENDATION TO THE BOARD MR JOHNSON SAID YESTERDAY MR JOHNSON THE FIRST REPUBLICAN NAMED TO HEAD AN AGENCY IN THE CLINTON ADMINISTRATION SUPPORTED MR CLINTON FOR PRESIDENT AFTER BECOMING DISILLUSIONED WITH THE BUSH ADMINISTRATION'S LACK OF LEADERSHIP ON THE ECONOMY LATE LAST YEAR MR JOHNSON'S NAME POPPED UP OFTEN ON LISTS FOR THE TOP POST AT THE COMMERCE DEPARTMENT DENNIS FISHER FORMERLY COMPTROLLER OF THE GSA BECAME ACTING ADMINISTRATOR AFTER MR CLINTON'S ELECTION GSA AN INDEPENDENT AGENCY OF THE EXECUTIVE BRANCH WITH AN ANNUAL BUDGET OF 104 BILLION SETS POLICY FOR OTHER EXECUTIVE BRANCH AGENCIES ON SUPPLY AND SERVICE PROCUREMENT PROPERTY MANAGEMENT TELECOMMUNICATIONS AND AUTOMATED DATA PROCESSING SEPARATELY PRESIDENT CLINTON NOMINATED BRIAN ATWOOD A FORMER STATE DEPARTMENT ASSISTANT SECRETARY TO HEAD THE AGENCY FOR INTERNATIONAL DEVELOPMENT MR ATWOOD WAS SELECTED AFTER TWO EARLY FRONTRUNNERS WERE OVERLOOKED RUTH HARKIN THE WIFE OF SEN TOM HARKIN AND MATTHEW MCHUGH A FORMER NEW YORK CONGRESSMAN THE BATTLE BETWEEN MR MCHUGH AND MRS HARKIN TURNED BITTER AND IT BECAME CLEAR THAT THE PRESIDENT WAS LIKELY TO TURN TO A THIRD CHOICE FOR THE OBSCURE POST THAT DISPENSES FOREIGN AID 9303300116 930330 MARKETING & MEDIA CALIFORNIA SEEKS TOTAL BAN OF CHANNEL ONE AT A SCHOOL SACRAMENTO CALIF THE CALIFORNIA DEPARTMENT OF EDUCATION LAUNCHED AN APPEAL OF A COUNTY JUDGE'S DECISION IN AN ATTEMPT TO HAVE THE COMMERCIAL CHANNEL ONE NEWS PROGRAM TOTALLY BANNED AT A SAN JOSE HIGH SCHOOL THE DEPARTMENT HAD BEEN DISSATISFIED WITH THE SCOPE OF THE RULING MADE LAST NOVEMBER BY SUPERIOR COURT JUDGE JEREMY FOGEL OF SANTA CLARA COUNTY THE DECISION HAD BEEN A PARTIAL VICTORY FOR THE STATE BECAUSE IT REQUIRED THE DEFENDANT EAST SIDE UNION SCHOOL DISTRICT TO ADOPT PROCEDURES TO ENSURE THAT STUDENTS WERE VIEWING THE PROGRAM VOLUNTARILY BUT THE 12MINUTE WHITTLE COMMUNICATIONS LP PROGRAM WHICH INCLUDES TWO MINUTES OF ADVERTISING HAS CONTINUED TO BE VIEWED AT THE HIGH SCHOOL UNDER THOSE NONCOMPULSORY CONDITIONS STATE OFFICIALS SAID THEY WEREN'T SATISFIED WITH THE COURT DECISION BECAUSE IT DIDN'T ADDRESS THE MORE FUNDAMENTAL ISSUE OF THE COMMERCIAL USE OF CLASSROOM TIME THE DECISION ALSO DENIED A STATE REQUEST TO BAR THE SHOWING OF CHANNEL ONE UNCONDITIONALLY THE QUESTION IS CAN CALIFORNIA PUBLIC SCHOOLS SELL OFF PART OF THE SCHOOL DAY FOR NONEDUCATION PURPOSES SAID WILLIAM D DAWSON ACTING SUPERINTENDENT OF PUBLIC INSTRUCTION JIM RITTS PRESIDENT OF NETWORK AFFAIRS FOR WHITTLE'S EDUCATIONAL NETWORK SAID THE APPEAL SEEMS TO US TO BE A LUDICROUS AND MONUMENTAL WASTE OF PUBLIC FUNDS WE'RE FULLY CONFIDENT THAT THE APPEALS COURT IF IT HEARS THIS CASE WILL BACK JUDGE FOGEL 9303300115 930330 BUSINESS IS ASKED TO FIND 13 MILLION SUMMER JOBS WASHINGTON THE CLINTON ADMINISTRATION ASKED BUSINESSES TO GENERATE 13 MILLION JOBS FOR YOUTHS THIS SUMMER THE SAME NUMBER THE WHITE HOUSE HOPES TO CREATE THROUGH GOVERNMENT PROGRAMS AT A RALLY AT THE WHITE HOUSE VICE PRESIDENT ALBERT GORE URGED INDUSTRY LEADERS TO HELP FIND WORK FOR DISADVANTAGED YOUTHS AGES 14 THROUGH 21 BUSINESS OFFICIALS SAID THEY CREATED ONE MILLION JOBS LAST SUMMER AND PREDICTED IT WOULDN'T BE TOO DIFFICULT TO RAISE THE NUMBER BY 30 BUT THEY WORRIED ABOUT THE TARGETING OF INNERCITY YOUTH BECAUSE MANY JOBS SET UP IN THE PAST HAVE BEEN FOR COLLEGE STUDENTS AND FOR INTERNSHIPS A GROUP SPEARHEADING THE EFFORT THE NATIONAL ALLIANCE OF BUSINESS HAS PUT TOGETHER A PLEDGE FORM FOR COMPANIES TO VOW TO HIRE A SPECIFIC NUMBER OF YOUTHS FOR CERTAIN JOBS THE WASHINGTONBASED GROUP ALSO WILL HAVE AN 800NUMBER FOR PLEDGES SMALL BUSINESSES ARE EXPECTED TO CARRY MUCH OF THE LOAD THIS SUMMER BECAUSE MANY LARGE COMPANIES HAVE GONE THROUGH CUTBACKS OVER THE PAST SEVERAL YEARS SAID KEITH POSTON A SPOKESMAN FOR THE BUSINESS GROUP 9303300114 930330 THEY CAN TELL THEMSELVES THEY NEEDN'T FRET ABOUT FILTHY LUCRE BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA AS EVERYBODY KNOWS THE SWISS WANT EVERYTHING IN SWITZERLAND TO BE SPOTLESSLY CLEAN THE SNOWY MOUNTAINS THE SPARKLING LAKES THE DOLLHOUSE TOWNS AND THE MONEY ALL THE BANK NOTES SEEM TO HAVE THAT CRACKLING CRISP JUSTPRINTED LOOK AND FEEL THE SWISS LOVE IT AND NOT JUST BANKERS ONE OF THE REAL PLEASURES IN EVERYDAY LIFE SAYS FRITZ BLOCHER A ZURICH SOCIAL WORKER IS TO HOLD A CRISP NEW BANK NOTE IN YOUR HAND HOW DO THE SWISS KEEP THEIR MONEY FROM GETTING AS TIREDLOOKING AS ITALIAN LIRE OR FRENCH FRANCS THE ANSWER HAS NOTHING TO DO WITH MONEY LAUNDERING THE SWISS NATIONAL BANK SIMPLY KEEPS A CLOSE EYE ON THE BILLS AND YANKS THEM FROM CIRCULATION BEFORE A FRAY OR A TEAR HAS A CHANCE TO BESMIRCH THEM ACCORDING TO THE CENTRAL BANK AS MANY AS ONETHIRD OF SWISS BANK NOTES ARE REPLACED EACH YEAR THE HIGHEST REPLACEMENT RATE IN THE WORLD AT A COST OF MORE THAN 20 MILLION FRANCS 13 MILLION WHY BOTHER IMAGE IS ONE REASON THE FIRST THING YOU SEE WHEN YOU ARRIVE IN A COUNTRY IS THE MONEY SAYS ROLAND TORNARE THE CHIEF CASHIER OF THE CENTRAL BANK IT'S LIKE A NATIONAL IDENTITY ADDS WERNER ABEGG A SPOKESMAN FOR THE CENTRAL BANK THE VALUE OF A CURRENCY IS REFLECTED IN THE WAY IT LOOKS AND FEELS OF COURSE NOT ALL SWISS ARE SO FINICKY MONEY IS MONEY SAYS STEPHANIE AERNI A ZURICH LAWYER SHE ADDS THAT WHILE SHE APPRECIATES A CRISP CLEAN BANK NOTE AS MUCH AS THE NEXT PERSON SHE ISN'T LIKELY TO REJECT A BILL JUST BECAUSE IT'S WORN MORE IMPORTANT TO THE CENTRAL BANK THOUGH IS SECURITY FRAYED AND DIRTY CURRENCY MAKES IT EASIER FOR FORGERIES TO SLIP INTO CIRCULATION WE HAVE VERY FEW FALSE NOTES SAYS MR ABEGG AND ANY THAT DO SHOW UP ARE DISCOVERED QUICKLY THAT HASN'T STOPPED THE SWISS NATIONAL BANK FROM PURSUING CUTTINGEDGE TECHNOLOGY FOR ITS MONEY SWISS BANK NOTES DUE OUT IN 1995 WILL INCORPORATE A KINEGRAM A THREEDIMENSIONAL IMAGE SIMILAR TO THE HOLOGRAMS COMMON ON CREDIT CARDS THE IMAGE IN A KINEGRAM SEEMS TO MOVE WHEN VIEWED FROM DIFFERENT ANGLES AND IT IS DESIGNED TO DEFEAT COLOR PHOTOCOPIERS WHICH THE CENTRAL BANK ESPECIALLY FEARS EVEN IN DISPOSING OF CURRENCY THE SWISS MONEY PEOPLE HAVE FOUND A BETTER WAY THE CURRENT SHREDDINGCOMPRESSINGINCINERATION SYSTEM IS BEING REPLACED BY COMPUTERCONTROLLED AUTOMATIC MACHINES THAT WILL CUT DISPOSAL COSTS 10 9303300113 930330 BUSINESS BRIEF FLEET CALL WILL BUY STAKE IN AMERICAN MOBILE SYSTEMS INC RUTHERFORD NJ FLEET CALL INC SAID IT WILL ACQUIRE A MAJORITY INTEREST IN AMERICAN MOBILE SYSTEMS INC WOODLAND HILLS CALIF FOR ABOUT 50 MILLION UNDER AN AGREEMENT FLEET CALL WILL PURCHASE AT LEAST 71 MILLION SHARES IN AMERICAN MOBILE SYSTEMS FOR ABOUT 7 A SHARE FLEET CALL PURCHASED 714286 SHARES FOR 5 MILLION YESTERDAY AS THE FIRST STEP IN THE PLAN BOTH CONCERNS OPERATE SPECIALIZED MOBILE RADIO COMMUNICATIONS SYSTEMS IN LATE OVERTHECOUNTER TRADING YESTERDAY FLEET CALL SHARES WERE AT 22375 UP 375 CENTS AND AMERICAN MOBILE SYSTEMS AT 6 UP 50 CENTS BY GAINING CONTROL OF AMERICAN MOBILE SYSTEMS FLEET CALL WILL HAVE ACCESS TO THE COMPANY'S FLORIDA COASTAL SERVICE AREAS INCLUDING TAMPA MIAMI FORT LAUDERDALE AND SARASOTA ABOUT EIGHT MILLION RESIDENTS LIVE IN AREAS COVERED BY AMERICAN MOBILE LICENSES FLEET CALL WHICH OWNS AND OPERATES SPECIALIZED MOBILE RADIO SYSTEMS IN SIX MARKETS ALSO WILL ACQUIRE A FIVEYEAR OPTION TO PURCHASE AN ADDITIONAL 18 MILLION AMERICAN MOBILE SHARES IF FLEET CALL EXERCISES THE OPTION IT WOULD CONTROL 57 OF THE AMERICAN MOBILE SHARES OUTSTANDING THE TWO COMPANIES ALSO SAID THAT SEVEN YEARS AFTER THE CLOSING OF THE INITIAL DEAL REMAINING AMERICAN MOBILE SHAREHOLDERS WOULD HAVE THE RIGHT TO CONVERT THEIR SHARES TO CASH OR AT FLEET CALL'S OPTION FLEET CALL COMMON STOCK THE CONVERSION RATIO WOULD BE ONE FLEET CALL SHARE FOR EVERY 314 AMERICAN MOBILE SHARES FLEET CALL ALSO SAID THAT IF THE PLAN TO PURCHASE 71 MILLION SHARES IN AMERICAN MOBILE ISN'T COMPLETE WITHIN ONE YEAR IT HAS THE RIGHT TO SELL THE ACQUIRED SHARES BACK TO AMERICAN MOBILE FLEET CALL ANNOUNCED LAST WEEK PLANS TO CHANGE ITS NAME TO NEXTEL COMMUNICATIONS INC BUT IT IS STILL AWAITING SHAREHOLDER APPROVAL 9303300112 930330 LEHMAN BROTHERS' HILL IS OUSTED IN SHAKEUP BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO'S NEW CHIEF EXECUTIVE HARVEY GOLUB ABRUPTLY FORCED OUT J TOMILSON HILL ONE OF THE TWO HEADS OF LEHMAN BROTHERS THE BIG INVESTMENT BANK THE RESIGNATION OF MR HILL AN 11YEAR LEHMAN VETERAN AND ONE OF WALL STREET'S BEST KNOWN DEAL MAKERS MARKED THE SECOND MAJOR SHAKEUP OF AMERICAN EXPRESS'S BIG SECURITIES OPERATION ENGINEERED BY MR GOLUB IN LESS THAN THREE WEEKS ON MARCH 12 MR GOLUB ANNOUNCED THAT AMERICAN EXPRESS WOULD SELL ITS SHEARSON BROKERGE OPERATIONS TO PRIMERICA CORP FOR 115 BILLION SINCE MR GOLUB TOOK CONTROL OF AMERICAN EXPRESS IN LATE JANUARY AFTER ANGRY INSTITUTIONAL INVESTORS FORCED THE RESIGNATION OF CHAIRMAN JAMES D ROBINSON III THE NEW CEO HAS STUNNED WALL STREET WITH HIS SWEEPING MOVES THE FORCED DEPARTURE OF MR HILL LEAVES LEHMAN BROTHERS WHICH WASN'T INCLUDED IN THE SALE TO PRIMERICA WITH A SINGLE PRESIDENT RICHARD FULD JR A 24YEAR LEHMAN VETERAN AND TRADER THE REMOVAL OF MR HILL A HIGHLY SKILLED BUT OFTEN ABRASIVE INVESTMENT BANKER WAS SEEN INSIDE LEHMAN AS ANOTHER STEP BY MR GOLUB TO PAVE THE WAY FOR THE SALE OF PART OR ALL OF LEHMAN IN A PUBLIC STOCK OFFERING POSSIBLY WITHIN A YEAR IN A BLUNT LETTER TO EMPLOYEES MR GOLUB SAID LEHMAN DIDN'T NEED TWO CHIEFS I HAVE CONCLUDED THAT A STRUCTURE WITH A SINGLE LEADER WOULD REDUCE THE POTENTIAL FOR CONFUSION ABOUT RESPONSIBILITY AND AUTHORITY WITHIN THE ORGANIZATION WHILE INCREASING ACCOUNTABILITY MR GOLUB WROTE MR HILL HAS DECIDED UNDER THE CIRCUMSTANCES HE SHOULD RESIGN FROM THE FIRM MR GOLUB SAID NEITHER MR HILL NOR MR FULD COULD BE REACHED FOR COMMENT MEANWHILE THERE WAS ANOTHER HIGHLEVEL DEPARTURE AT LEHMAN IN AN UNRELATED MOVE MICHAEL D MADDEN COCHIEF OF LEHMAN'S INVESTMENTBANKING DIVISION AND ONE OF THE FIRM'S MOST HIGHLY PAID INVESTMENT BANKERS WILL RESIGN LEHMAN EXECUTIVES SAID THE OUSTER OF MR HILL ENDS AN UNUSUAL DUAL LEADERSHIP STRUCTURE AT LEHMAN MESSRS HILL 44 YEARS OLD AND FULD 46 SOMETIMES HAD DESCRIBED THEMSELVES AS BLOOD BROTHERS WITHIN THE FIRM THE TWO HAD BEEN NAMED COCHIEFS OF LEHMAN IN 1990 IN JANUARY THEY WERE NAMED COPRESIDENTS AND COCHIEF OPERATING OFFICERS OF SHEARSON'S HOLDING COMPANY MR GOLUB HASN'T YET NAMED A CEO FOR LEHMAN HE MAY ULTIMATELY DECIDE TO BRING IN AN OUTSIDER NAME MR FULD TO THE POST OR LEAVE THE CEO POSITION VACANT PEOPLE FAMILIAR WITH LEHMAN SAID MR HILL HAD RANKLED MR GOLUB REPEATEDLY BICKERING WITH MR GOLUB OVER HIS PAY AMONG OTHER THINGS IN 1992 MESSRS HILL AND FULD ARE BELIEVED TO HAVE EACH MADE MORE THAN 10 MILLION IN SALARY AND BONUSES LEHMAN DECLINED TO COMMENT ON MR HILL'S OUSTER OR PAY ISSUES MR GOLUB DECLINED TO COMMENT AS DID AMERICAN EXPRESS BUT PEOPLE FAMILIAR WITH AMERICAN EXPRESS SAY MR GOLUB INCREASINGLY HAS FOCUSED ON LOOKING FOR WAYS TO SLASH LEHMAN'S OVERALL PAY LEVELS MR HILL IS BEST KNOWN AS A DEAL MAKER DURING THE 1980S TAKEOVER BOOM HE BECAME HEAD OF LEHMAN'S MERGERSANDACQUISITIONS DEPARTMENT IN 1988 INDEED MR HILL WAS ONE OF THE FEW WALL STREET DEAL MAKERS TO USE THEIR '80S MERGERS EXPERIENCE AS A SPRINGBOARD TO RUN THEIR FIRMS IN THE '90S ANOTHER ROBERT F GREENHILL WAS PRESSURED TO RESIGN AS MORGAN STANLEY GROUP INC'S PRESIDENT EARLIER THIS MONTH TO BECOME SENIOR ADVISER TO THE FIRM ON INVESTMENTBANKING MATTERS BUT SOME COLLEAGUES SAY MR HILL NEVER TOTALLY MADE THE SHIFT FROM THE GOGO '80S WHERE DOING THE NEXT DEAL MATTERED MORE THAN CAREFULLY CULTIVATING RELATIONSHIPS WITH CORPORATE CLIENTS LAST YEAR WHEN LEHMAN FOUGHT FOR THE UNDERWRITING BUSINESS OF A LONGTIME CLIENT LEHMAN INVESTMENT BANKERS OFFERED TO GIVE BACK TO THE CLIENT PART OF THE SPREAD THE DIFFERENCE BETWEEN HOW MUCH LEHMAN WOULD PAY THE CLIENT FOR THE STOCK IT PLANNED TO ISSUE AND HOW MUCH IT WOULD CHARGE INVESTORS BUT THAT DECISION DIDN'T SIT WELL WITH MR HILL YOU CAN'T GIVE BACK PART OF OUR SPREAD MR HILL FUMED TO UNDERWRITING COLLEAGUES ACCORDING TO LEHMAN EXECUTIVES LEHMAN ENDED UP CUTTING THE SPREAD AND GETTING THE BUSINESS LEHMAN BROTHERS FOUNDED IN 1850 FELL INTO THE ARMS OF AMERICAN EXPRESS IN 1984 AFTER A BITTER INTERNAL FIGHT FOR CONTROL BETWEEN THE FIRM'S TRADERS AND INVESTMENT BANKERS NOW SOME WALL STREET EXECUTIVES SAY THE ASCENSION OF MR FULD FAVORS LEHMAN'S TRADERS OVER INVESTMENT BANKERS MR FULD MADE HIS MARK AT LEHMAN AS A TRADER THE MOVE TELLS YOU THAT THEY'RE MAKING A STRONG COMMITMENT TO THE CAPITALMARKETS SIDE OF THEIR BUSINESS MUCH LIKE MORGAN STANLEY SAID GARY GOLDSTEIN PRESIDENT OF THE WHITNEY GROUP A NEW YORK EXECUTIVE SEARCH FIRM BUT MR GOLUB IN HIS LETTER TO LEHMAN EMPLOYEES SAID THERE WOULD BE NO STRATEGIC CHANGE AT LEHMAN DICK FULD WILL CONTINUE TO PURSUE A ONEFIRM' APPROACH THAT EMPHASIZES COLLABORATION AND COOPERATION WITH A SINGULAR FOCUS ON SERVING THE NEEDS OF CLIENTS INDEED MR FULD YESTERDAY HUDDLED WITH SENIOR LEHMAN INVESTMENT BANKERS TO ASSURE THEM OF HIS COMMITMENT AND SUPPORT PEOPLE FAMILIAR WITH THE FIRM SAID MEANWHILE THE DEPARTURE OF INVESTMENT BANKING COCHIEF MR MADDEN COULD BE A SETBACK FOR LEHMAN WHICH HAS BOOSTED ITS STATURE IN THE LUCRATIVE MARKET FOR STOCK UNDERWRITING LEHMAN IS RANKED NO 3 BEHIND MERRILL LYNCH & CO AND GOLDMAN SACHS & CO IN UNDERWRITING FEES ACCORDING TO SECURITIES DATA CO MR MADDEN AN ENERGY SPECIALIST HAD A 1992 PAY PACKAGE OF MORE THAN 2 MILLION WALL STREET EXECUTIVES SAY MR MADDEN DIDN'T RETURN CALLS FOR COMMENT COLLEAGUES SAY MR MADDEN HAD GROWN INCREASINGLY FRUSTRATED THAT HE COULDN'T RISE FURTHER AT LEHMAN WHOSE SENIOR RANKS ARE FILLED WITH LONGTIME LEHMAN EXECUTIVES INCLUDING MR FULD AND MANAGING PARTNER T CHRISTOPHER PETTIT MR MADDEN 43 IS CONSIDERING LAUNCHING AN INVESTMENT BOUTIQUE OR JOINING ANOTHER INVESTMENT BANK COLLEAGUES SAID LEHMAN DECLINED TO COMMENT ON HIS DEPARTURE WITH MUCH FANFARE LEHMAN HIRED MR MADDEN FROM KIDDER PEABODY GROUP INC IN 1989 WHERE HE WAS HEAD OF INVESTMENT BANKING BESIDES HIS MANAGEMENT DUTIES AT LEHMAN MR MADDEN DEVELOPED MUCH OF THE FIRM'S BUSINESS WITH MAJOR CLIENTS IN THE ENERGY AREA INCLUDING ATLANTIC RICHFIELD CO FREEPORTMACMORAN CO AND SHELL OIL CO WITHIN LEHMAN'S 600MEMBER INVESTMENT BANKING UNIT MR MADDEN WAS KNOWN AS MR OUTSIDE FREQUENTLY GOING ON THE ROAD TO PITCH DEALS TO CLIENTS MEL SHAFTEL LEHMAN'S INVESTMENT BANKING COCHIEF IS EXPECTED TO ASSUME SOLE RESPONSIBILITY FOR THE INVESTMENTBANKING GROUP MR SHAFTEL HAS PRIMARILY HANDLED MANAGEMENT ISSUES LEHMAN EXECUTIVES SAID 9303300111 930330 TECHNOLOGY MCI TALKS TO ENTERTAINMENT FIRMS CABLE TV CONCERNS ABOUT PARTNERSHIPS BY JOHN J KELLER AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL MCI COMMUNICATIONS CORP'S PRESIDENT SAID THE COMPANY IS TALKING TO LOTS OF PARTIES IN THE CABLE TELEVISION AND ENTERTAINMENT INDUSTRY ABOUT PARTNERSHIPS AND POSSIBLY SELLING A STAKE IN ITSELF AS IT TRIES TO BECOME A BROADER CARRIER OF COMMUNICATIONS SERVICES ONE OF THOSE TALKS IS SAID TO INVOLVE CABLE TELEVISION COMPANIES INCLUDING TELECOMMUNICATIONS INC THE LARGEST CABLE TV COMPANY IN THE US ACCORDING TO INDIVIDUALS FAMILIAR WITH THE TALKS WHILE NEITHER MCI'S PRESIDENT DANIEL AKERSON NOR TCI WOULD GIVE DETAILS OF ANY DISCUSSIONS THE INDIVIDUALS SAID THE COMPANIES HAVE DISCUSSED FORMING A CONSORTIUM TO OFFER A NEW KIND OF WIRELESS SERVICE THAT WILL LET CONSUMERS USE LIGHTWEIGHT PORTABLE PHONES ANYWHERE IN THE US CONSTRUCTING WHAT THE CABLE INDUSTRY DUBS A PERSONAL COMMUNICATIONS SERVICE WILL COST COMPANIES BILLIONS OF DOLLARS AND THEY WOULD COMPETE WITH PHONE SERVICES ALREADY OFFERED TODAY BY CELLULAR PHONE COMPANIES HOWEVER IF THE CABLEPHONE SERVICE FLIES MCI THE NATION'S SECOND LARGEST LONGDISTANCE TELEPHONE COMPANY COULD RELAY THE CALLS FROM THESE NEW POCKETPHONES TO OTHER REGIONS IN THE US OR ABROAD AND THE CABLE COMPANIES WOULD GIVE MCI DIRECT ACCESS TO A WHOLE NEW BASE OF LOCAL SUBSCRIBERS MCI'S TALKS COME AS THE WORLD'S TELEPHONE COMPUTER AND MEDIA COMPANIES BEGIN TO REFASHION THEMSELVES FOR A NEW ERA BY THE NEXT CENTURY MCI AND OTHER CARRIERS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO AND BRITISH TELECOMMUNICATIONS PLC ENVISION A NEW KIND OF CONSUMER SERVICE THAT MARRIES TELECOMMUNICATIONS COMPUTER AND VIDEO TECHNOLOGIES OR WHAT THEY CALL MULTIMEDIA CONSUMERS COULD NOT ONLY MAKE CALLS USING THEIR POCKET PHONES THEY COULD ALSO SHOP FROM HOME THROUGH THESE NETWORKS OR PLAY INTERACTIVE VIDEO GAMES OUTSIDE THE HOME THEY COULD GAIN ACCESS TO MANY OF THE SAME SERVICES ONLY WITHOUT WIRES MR AKERSON IS QUICK TO MENTION THAT A TCI SPINOFF CONTROLS THE HOME SHOPPING NETWORK INC AND QVC NETWORK INC TWO COMPANIES THAT LET CONSUMERS SHOP VIA THEIR TELEVISIONS MULTIMEDIA WILL CHANGE THE WHOLE WORLD SAID MR AKERSON IN AN INTERVIEW BY THE YEAR 2025 THERE WON'T BE ANY SHOPPING MALLS IT IS UNCLEAR HOW AN MCICABLE ALLIANCE WILL PLAY OUT MCI COULD DO A DEAL WITH NUMEROUS CABLE PLAYERS INCLUDING TIME WARNER INC BUT CLEARLY THE PERSONAL COMMUNICATION SERVICE WOULD BE AIMED SQUARELY AT OTHER CONSUMER WIRELESS PHONE OFFERINGS AT&T HAS TEAMED UP WITH MCCAW CELLULAR COMMUNICATIONS INC TO OFFER SERVICE NATIONWIDE IN THE CELLULAR FREQUENCY BAND AND THE US'S BIGGEST LOCAL PHONE COMPANIES HAVE A NATIONAL SERVICE CALLED MOBILINK THAT USES THEIR CELLULAR NETWORKS IN THE LAST TWO YEARS THE CABLE COMPANIES SUCH AS TCI HAVE BEEN TESTING THESE PERSONAL COMMUNICATION SERVICES BUT THE FEDERAL COMMUNICATIONS COMMISSION HAS YET TO DECIDE HOW TO ISSUE LICENSES OR EVEN NEW FREQUENCIES FOR THE SERVICE THESE RADIO NETWORKS WOULD BE LINKED DIRECTLY BY WIRES TO THEIR CABLE SYSTEMS MR AKERSON DECLINED TO COMMENT ON SPECIFIC CABLE LINKUPS OTHER THAN TO SAY THE TRADITIONAL NETWORKS WILL CEASE TO EXIST IN THE MULTIMEDIA ERA HE DID SAY MCI'S MARKET POSITION MAKES IT AN ATTRACTIVE PARTNER FOR ANY NEWCOMER WE'RE THE PRETTIEST GIRL AT THE DANCE HE SAID BUT HE ACKNOWLEDGED MCI DOESN'T HAVE THE FINANCIAL WHEREWITHAL TO BE A GLOBAL COMPETITOR AND WOULD NEED PARTNERS OR EVEN A BIG INVESTOR HE ALSO SAID MCI WOULD BE COMPETITIVELY DISADVANTAGED IF IT DIDN'T HAVE A SIMILAR SERVICE TO AT&T MCCAW'S WHICH WILL GIVE MCCAW CUSTOMERS DIRECT ACCESS TO THE AT&T NETWORK THAT WAS A GREAT DEAL AT&T MADE WITH MCCAW MR AKERSON SAID ROBERT THOMSON SENIOR VICE PRESIDENT OF COMMUNICATIONS AT TELECOMMUNICATIONS WOULDN'T COMMENT ON SPECIFIC TALKS THE COMPANY HAS HAD CONCERNING POSSIBLE VENTURES BUT HE SAID TCI'S CABLE NETWORKS WOULD CLEARLY BE SUITABLE FOR PERSONAL COMMUNICATIONS SERVICE BUT TO BOOST TCI'S PHONE EXPERTISE WE'RE OPEN TO A RANGE OF SUGGESTIONS FROM A WIDE RANGE OF PARTIES HE SAID A CABLE HOOKUP WOULD ALLOW MCI TO CAST A WIDER NET MCI AND TCI FOR EXAMPLE HAVE ABOUT 14 MILLION AND 10 MILLION SUBSCRIBERS RESPECTIVELY IF LICENSED EACH COMPANY COULD MARKET THE NEW PHONE SERVICES TO THEIR SUBSCRIBERS 9303300110 930330 LAW LEGAL BEAT ENTREPRENEUR IS THE INTERMEDIARY BETWEEN COMPANIES LAW FIRMS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL DOES IT MAKE SENSE TO HIRE A LAWYER TO KEEP AN EYE ON YOUR LAWYER A PHILADELPHIA LEGAL ENTREPRENEUR THINKS SO AND HE IS HIRING HIMSELF OUT AS AN INTERMEDIARY BETWEEN COMPANIES AND THEIR LAW FIRMS CONSULTANT DAVID B HARWI'S SERVICE IS TARGETED PRIMARILY AT SMALL COMPANIES HE ARGUES THAT EVEN COMPANIES THAT DON'T SPEND MILLIONS OF DOLLARS ON LEGAL SERVICES CAN BENEFIT FROM AN ADVISER WHO IS SAVVY ABOUT THE MANEUVERINGS OF LAW FIRMS THE IDEA HE SAYS IS TO HELP CLIENTS FOCUS ON THEIR GOALS ESTABLISH GOOD RELATIONSHIPS WITH THEIR LAWYERS AND ULTIMATELY HOLD DOWN COSTS IF THE THOUGHT OF HIRING A LAWYER TO TALK TO YOUR LAWYER SEEMS STRANGE CONSIDER THAT MOST LARGE COMPANIES HAVE A GENERAL COUNSEL TO PERFORM EXACTLY THAT ROLE MR HARWI A FORMER PARTNER AT THE PHILADELPHIA LAW FIRM SAUL EWING REMICK & SAUL SAYS HIS GOAL IS TO SERVE SMALL COMPANIES THAT CAN'T AFFORD FULLTIME INHOUSE COUNSEL MY MARKET IS ANYONE WHO IS GOING TO SPEND MORE THAN SEVERAL THOUSAND DOLLARS A YEAR ON LEGAL SERVICES SAYS MR HARWI WHO STARTED HIS COMPANY LEGAL TRIAGE SERVICES INC LAST YEAR WILL IT WORK SKEPTICS WONDER ABOUT THE WISDOM NOT TO MENTION THE EFFICIENCY OF HIRING ONE OUTSIDE LAWYER TO KEEP TABS ON ANOTHER THEY ARGUE THAT ANOTHER LAYER OF LAWYERS COULD INVITE EXTRANEOUS ADVICE AND DRAG OUT ALREADY EXPENSIVE LEGAL WORK THE MORE LAWYERS WE PUT BETWEEN THE SERVICE ACQUIRERS AND THE SERVICE PROVIDERS THE WORSE EVERYTHING GETS SAYS TOM CLAY A LAW FIRM CONSULTANT WITH ALTMAN WEIL PENSA IN NEWTON SQUARE PA AND THAT THERE SHOULD BE A NEED FOR SUCH A SERVICE IS ITSELF A SAD COMMENTARY ON THE STATE OF THE LEGAL MARKET SAYS JONATHAN BELLIS A LAW FIRM CONSULTANT WITH PRICE WATERHOUSE IN NEW YORK BUT LAWYERS ARE NOTORIOUSLY POOR AT COMMUNICATING WITH THEIR OWN CLIENTS FOR THAT REASON SOME COMPANIES ARE FINDING THAT MR HARWI'S IDEA HAS MERIT IN VALLEY FORGE PA FOR EXAMPLE TOM O'DONNELL IS STILL FUMING BECAUSE HIS SMALL COMPUTER SOFTWARE COMPANY SPENT 35000 IN LEGAL FEES SEVERAL YEARS AGO TO STRUCTURE A 225000 LOAN IN THE FORM OF CONVERTIBLE DEBT IN RESPONSE TO GENERAL QUESTIONS FROM THE LENDER SAYS MR O'DONNELL HIS COMPANY'S OUTSIDE LAW FIRM RESEARCHED AN OPTION WHICH THEY THEN PRESENTED TO US AND SAID WE DIDN'T NEED MR O'DONNELL FIRED THE FIRM NOW HE IS RESTRUCTURING HIS DEBT AND HE HAS HIRED MR HARWI FOR A CONSULTATION BEFORE SITTING DOWN WITH HIS NEW LAWYERS DAVID HAS HELPED LAY OUT SOME CONCEPTS GUIDELINES WITHIN WHICH WE WOULD LIKE OUR ATTORNEYS TO WORK SO WE DON'T GET LED DOWN 16 DIFFERENT ROADS SAYS MR O'DONNELL YOU DEFINE WHAT THEY'RE GOING TO DO UPFRONT AND YOU DON'T VARY FROM THAT UNLESS YOU DEFINE WHAT THEY'RE GOING TO DO AND HOW MUCH IT'S GOING TO COST MR O'DONNELL ESTIMATES THAT WITH SIMILAR ADVICE HE COULD HAVE CUT HIS FIRST LEGAL TAB IN HALF MR HARWI HAS ADVISED CLIENTS TO DEMAND SIMPLE COST CONTROLS ONE CLIENT A VALVE MANUFACTURER IN SUBURBAN PHILADELPHIA SPENT 300000 IN A YEAR DEFENDING AN ASBESTOS CASE THAT HAD 80 PLAINTIFFS THE TAB INCLUDED COPYING COSTS OF 50 CENTS A PAGE AND DISCOUNTED HOURLY RATES FOR REVIEWING DUPLICATIVE DOCUMENTS FROM INDIVIDUAL PLAINTIFFS MR HARWI WHO SPECIALIZED IN BUSINESS AND CORPORATE LAW WHILE AT SAUL EWING CHARGES 700 A DAY HE SAYS ROUGHLY 36 OF HIS DAILY RATE WHEN HE LEFT THE LAW FIRM IN 1991 COMPANIES CAN REFUSE TO PAY BENEFITS TO SURVIVING PARTNERS OF GAY EMPLOYEES EVEN IF THE EMPLOYER HAS A POLICY BANNING DISCRIMINATION ON THE BASIS OF SEXUAL ORIENTATION A FEDERAL JUDGE RULED THE RULING IN A CASE AGAINST AMERICAN TELEPHONE & TELEGRAPH CO IS APPARENTLY THE FIRST BY A FEDERAL COURT TO ADDRESS THE ISSUE THE CASE HAS BEEN CLOSELY WATCHED BY GAYRIGHTS ADVOCATES AS A TEST OF THE EXTENT OF PROTECTIONS UNDER GAYNONDISCRIMINATION POLICIES ADOPTED BY EMPLOYERS THE CASE WAS FILED BY SANDRA ROVIRA THE SURVIVING PARTNER OF AN AT&T SALES MANAGER WHO HAD BEEN MS ROVIRA'S COMPANION FOR 12 YEARS MS ROVIRA ARGUED THAT SHE WAS ENTITLED TO A 58000 SICKNESSDEATH BENEFIT ROUTINELY GIVEN TO SURVIVING SPOUSES AND FAMILY MEMBERS BUT JUDGE ROBERT PATTERSON JR IN NEW YORK SAID THAT DESPITE AT&T'S POLICY BANNING DISCRIMINATION ON THE BASIS OF SEXUAL ORIENTATION OR MARITAL STATUS THE COMPANY DIDN'T HAVE TO INCLUDE UNMARRIED DOMESTIC PARTNERS IN ITS PENSION AND BENEFITS PLAN THE JUDGE SAID THAT UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT THE FEDERAL PENSION AND BENEFITS LAW KNOWN AS ERISA ONLY CERTAIN DOCUMENTS ABOUT THE BENEFITS PLAN DETERMINE WHO IS COVERED THE AT&T PLAN SAID THAT THE SICKNESSDEATH BENEFIT ONLY APPLIED TO THE LEGAL SPOUSE AND SOME OTHER DEPENDENT RELATIVES THE PLAIN WORDS OF THE PLAN REQUIRE A LEGAL MARRIAGE RATHER THAN A PUTATIVE OR FUNCTIONAL ONE JUDGE PATTERSON SAID HE SAID IT IS UP TO LEGISLATORS AND LABORMANAGEMENT NEGOTIATORS TO DECIDE WHETHER THE DEFINITION OF A SPOUSE SHOULD BE EXPANDED SUZANNE B GOLDBERG AN ATTORNEY FOR MS ROVIRA AT LAMBDA LEGAL DEFENSE & EDUCATION FUND A GAYRIGHTS GROUP SAID THE RULING TURNS THE COMPANY'S NONDISCRIMINATION POLICY INTO AN EMPTY PROMISE SHE SAID SHE EXPECTS THE DECISION WILL BE APPEALED LABORLAW SPECIALISTS SAID IT WOULD HAVE BEEN HIGHLY UNUSUAL IF THE COURT HAD ALLOWED THE COMPANY'S GENERAL NONDISCRIMINATION POLICIES TO OVERRIDE THE PROVISIONS OF THE BENEFITS PLAN A SPOKESMAN FOR AT&T SAID THAT NOW THAT THE CASE IS OVER THE COMPANY MIGHT EXPLORE WHETHER TO EXTEND BENEFITS TO UNMARRIED DOMESTIC PARTNERS WE HAVE A RATHER ENVIABLE TRACK RECORD IN TERMS OF NONDISCRIMINATION ON THE BASIS OF SEXUAL ORIENTATION HE SAID WHO'S NEWS STUART A SUMMIT 56 YEARS OLD FORMERLY THE SENIOR LITIGATION PARTNER AT SUMMIT SOLOMON & FELDESMAN JOINED NEW YORK LAW FIRM PHILLIPS NIZER BENJAMIN KRIM & BALLON AS A PARTNER SUMMIT SOLOMON A 100ATTORNEY NEW YORK FIRM WAS DISSOLVED MARCH 8 WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9303300109 930330 UNITED AIR SEEKS CHICAGO ROUTE TO HEATHROW DEAL WILL TEST WILLINGNESS OF UK TO LIBERALIZE TRANSPORTATION ACCORDS BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UNITED AIRLINES PLANS TO SEEK AUTHORITY TO SERVE THE LUCRATIVE MARKET BETWEEN CHICAGO AND LONDON'S HEATHROW AIRPORT THROUGH A TRANSACTION THAT WILL TEST THE BRITISH GOVERNMENT'S WILLINGNESS TO LIBERALIZE THE SKIES BETWEEN THE US AND THE UNITED KINGDOM UNITED A UNIT OF UAL CORP SAID IT WILL PAY 145 MILLION TO PURCHASE USAIR'S RIGHT TO FLY BETWEEN PHILADELPHIA AND LONDON'S GATWICK AIRPORT BUT ONLY IF THE BRITISH GOVERNMENT AGREES TO TRANSFER THAT ROUTE AUTHORITY TO THE CHICAGOLONDON HEATHROW MARKET THE MOVE BY UNITED COMES JUST TWO WEEKS AFTER THE CLINTON ADMINISTRATION APPROVED THE FIRST PHASE OF AN EQUITY INVESTMENT AND MARKETING LINK BETWEEN BRITISH AIRWAYS PLC AND USAIR A UNIT OF USAIR GROUP INC AT THAT TIME TRANSPORTATION SECRETARY FEDERICO PENA SAID THE APPROVAL OF THE FIRST PHASE WAS THE HOOK THAT WOULD INDUCE BRITISH OFFICIALS TO GIVE US CARRIERS ENHANCED RIGHTS TO SERVE BRITISH MARKETS OUR PROPOSAL PROVIDES PRESIDENT CLINTON'S ADMINISTRATION WITH AN EARLY OPPORTUNITY FOR THE UK GOVERNMENT TO DEMONSTRATE ITS COMMITMENT TO EXPANDING AIR TRANSPORTATION BETWEEN OUR TWO COUNTRIES SAID STEPHEN WOLF UNITED'S CHAIRMAN AND CHIEF EXECUTIVE IN A STATEMENT AFTER SEVERAL YEARS OF FUTILE LOBBYING TO GAIN THE RIGHT TO FLY BETWEEN ITS MAIN DOMESTIC HUB AT CHICAGO'S O'HARE INTERNATIONAL AIRPORT AND ITS EUROPEAN CONNECTING CENTER AT HEATHROW UNITED IS HOPING ITS REQUEST WILL BE AMONG THE FIRST ISSUES RESOLVED WHEN TRANSPORTATION OFFICIALS FROM BOTH COUNTRIES MEET NEXT MONTH IN WASHINGTON TO DISCUSS A NEW BILATERAL AGREEMENT THIS IS THE SORT OF THING THAT WE WILL BE TALKING ABOUT A BRITISH EMBASSY SPOKESMAN SAID IN RESPONSE TO UNITED'S REQUEST HOWEVER APPROVAL WILL REQUIRE A PRECEDENTSETTING DECISION CITY PAIRS ON INTERNATIONAL ROUTE AUTHORITIES HAVE BEEN SWITCHED BEFORE BUT ON A LIMITED BASIS AND WITHIN SPECIFIC GUIDELINES OF EXISTING BILATERAL AGREEMENTS UNITED'S REQUEST DOESN'T FALL WITHIN THOSE GUIDELINES FOR THE PAST 16 YEARS THE EXISTING BILATERAL AGREEMENTS BETWEEN THE TWO COUNTRIES HAVE PROHIBITED ANY NEW SERVICE BETWEEN CHICAGO AND LONDON CURRENTLY BRITISH AIRWAYS AND AMR CORP'S AMERICAN AIRLINES SERVE THE ROUTE EACH WITH TWO FLIGHTS A DAY AS PART OF ITS ALLIANCE WITH BRITISH AIRWAYS USAIR AGREED TO RELINQUISH ITS AUTHORITY BETWEEN LONDON'S GATWICK AIRPORT AND PHILADELPHIA BALTIMORE AND CHARLOTTE NC THROUGH ITS LINK WITH USAIR BRITISH AIRWAYS WILL SERVE THOSE MARKETS WITH BRITISH AIRWAYS NEW 246 EQUITY STAKE IN USAIR AND A DESIRE TO GAIN US APPROVAL TO BOOST THAT STAKE IN THE FUTURE THE BRITISH CARRIER MIGHT NUDGE ITS GOVERNMENT TO GRANT UNITED'S REQUEST BRITISH AIRWAYS HAS ALWAYS MADE CLEAR THAT IT IS IN FAVOR OF LIBERALIZATION BETWEEN THE UK AND THE US AND THIS ISSUE COULD WELL FORM PART OF SUCH A PACKAGE A BRITISH AIRWAYS SPOKESMAN SAID BOTH UNITED AND USAIR SAID THEY HAVE THE RIGHT TO TERMINATE THE PURCHASE AGREEMENT IF IT ISN'T COMPLETED BY MAY 14 WALL STREET REACTED FAVORABLY TO THE ANNOUNCEMENT IN LATE NEW YORK STOCK EXCHANGE TRADING UAL SHARES ADVANCED 2625 TO 124875 AND USAIR GROUP CLOSED UP 1125 AT 19875 9303300108 930330 BUSINESS BRIEFS MCKESSON CORP AGREED TO ACQUIRE CLOSELY HELD CLINICAL PHARMACEUTICALS INC TERMS WEREN'T DISCLOSED LEXMARK INTERNATIONAL INC ANNOUNCED CUTS OF AS MUCH AS 27 ON PRICES OF ITS PERSONAL PRINTERS CHRYSLER CORP AND LAWRENCE LIVERMORE NATIONAL LABORATORY SIGNED A THREEYEAR 6 MILLION COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENT FIRST WESTERN BANCORP PLANS TO MERGE ITS BEAVER TRUST CO AND FIRST NATIONAL BANK OF WESTERN PENNSYLVANIA UNITS AND IS SEEKING TO CHANGE THE NAMES OF ALL OF ITS UNITS TO FIRST WESTERN BANK THREE GENERAL MOTORS CORP DIVISIONS SIGNED SIX COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS VALUED AT 30 MILLION WITH SANDIA NATIONAL LABORATORIES SHAREHOLDERS OF CENTRAL FREIGHT LINES INC APPROVED ROADWAY SERVICES INC'S PLAN TO BUY THE WACO TEXAS TRUCKING COMPANY FOR 102 MILLION IN CASH GREAT ATLANTIC & PACIFIC TEA CO SAID IT COMPLETED THE PURCHASE OF 48 BIG STAR SUPERMARKETS IN THE ATLANTA AREA FOR 25 MILLION FROM GRAND UNION CO 9303300107 930330 TECHNOLOGY IBM TO DESIGN PCS WITH EYE TO HEALTH SAFETY ENVIRONMENT ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP IS LAUNCHING A BROAD INITIATIVE TO MAKE ITS PERSONAL COMPUTERS SAFER AND HEALTHIER FOR BUSINESS USERS AND LESS RISKY TO THE ENVIRONMENT IBM PC CO A SOMERS NY INDEPENDENT OPERATING UNIT CREATED BY IBM LAST SEPTEMBER SAID ALL OF ITS PERSONALCOMPUTER PRODUCTS FOR BUSINESS USERS WILL BE DESIGNED TO MEET INTERNATIONAL HEALTH AND SAFETY STANDARDS THE STANDARDS INCLUDE GUIDELINES ADOPTED BY SWEDEN AND GERMANY COVERING ITEMS SUCH AS RADIATION FROM DISPLAY MONITORS AND NOISE THE MOVE APPEARS TO BE AMONG THE FIRST BY A MAJOR PC MAKER TO MAKE ENTIRE COMPUTER PLATFORMS NOT JUST INDIVIDUAL COMPONENTS SUCH AS SCREENS AND KEYBOARDS SAFER TO USE IBM PC SAID IT EXPECTS THE HEALTH AND SAFETY STANDARDS TO AFFECT HUNDREDS OF IBM PRODUCTS FOR BUSINESS USERS INCLUDING DESKTOP AND FLOORSTANDING BUSINESS UNITS DISPLAY SCREENS AND KEYBOARDS THE TESTS WILL BEGIN WITH CERTAIN MODELS OF IBM'S PS/2 COMPUTERS THE MOVE COULD GIVE IBM AN ADVANTAGE IN THE FIERCELY COMPETITIVE PC INDUSTRY SAID ANALYST KIMBALL BROWN OF INFOCORP A SANTA CLARA CALIF MARKET RESEARCH FIRM WHILE IMPROVING IBM'S IMAGE THE MOVE COULD PROMPT OTHERS IN THE INDUSTRY TO TAKE SIMILAR STEPS HE NOTED PEOPLE MAY SEE IBM AS A GOOD GIANT INSTEAD OF ANOTHER GIANT MR BROWN SAID THE INITIATIVE ALSO COULD HELP IBM CUT COSTS IF THE STANDARDS ARE AUTOMATICALLY BUILT INTO THE COSTS OF IBM'S PRODUCTS THEN THE COST PER UNIT COULD BE MUCH LOWER THAN ADDING THE FEATURES AS ACCESSORIES MR BROWN ADDED 9303300106 930330 WHO'S NEWS PHILIP MORRIS PRESIDENT CLEARS 199 MILLION EXERCISING '92 OPTIONS NEW YORK PHILIP MORRIS COS'S PRESIDENT AND CHIEF OPERATING OFFICER WILLIAM MURRAY CLEARED 199 MILLION PROFIT ON STOCK OPTIONS HE EXERCISED IN 1992 IN ADDITION TO RECEIVING 38 MILLION IN SALARY AND BONUSES MR MURRAY THE NO 2 EXECUTIVE AT THE TOBACCO AND FOOD MARKETER REAPED THE PROFIT ON OPTIONS AWARDED SINCE 1984 THE OPTIONS' AVERAGE EXERCISE PRICE WAS 28 A SHARE AND HE SOLD THE SHARES AT 77125 A COMPANY SPOKESMAN SAID BUT PHILIP MORRIS'S STOCK PRICE HAS FALLEN SHARPLY IN MORE RECENT TIMES TO PROP IT UP THE COMPANY DEVISED AN INCENTIVE OF SORTS FOR MR MURRAY'S BOSS CHAIRMAN AND CHIEF EXECUTIVE MICHAEL A MILES ACCORDING THE COMPANY'S LATEST PROXY STATEMENT IT AWARDED MR MILES STOCK OPTIONS FOR 575000 SHARES IN 1992 BUT 400000 OF THEM ARE EXERCISABLE ONLY AT 100 THAT IS A MORE THAN 35 PREMIUM OVER PHILIP MORRIS STOCK'S RECENT TRADING RANGE BELOW 65 MR MILES ALSO RECEIVED 4 MILLION IN SALARY AND BONUSES LAST YEAR INCLUDING A 22 MILLION LONGTERM PERFORMANCE AWARD PHILIP MORRIS SAID IT PAID HIM ONLY 51 OF THE LONGTERM BONUS HE WAS ELIGIBLE TO RECEIVE IT COVERED THE COMPANY'S PERFORMANCE FOR THE THREE YEARS ENDED DEC 31 1992 AND WAS BASED PRIMARILY ON PHILIP MORRIS'S EARNINGS PER SHARE AND REVENUE IN 1992 LAST YEAR THE FOOD AND TOBACCO COMPANY'S REVENUE INCREASED 47 TO 591 BILLION AND EARNINGS ROSE 18 TO 49 BILLION OR 545 A SHARE EXCLUDING SPECIAL CHARGES A YEAR EARLIER BUT PHILIP MORRIS SHAREHOLDERS DIDN'T FARE AS WELL FOR THE YEAR THE COMPANY'S STOCK FELL NEARLY 4 TO 77125 AT THE END OF 1992 FROM 8025 AT THE END OF 1991 THE SHARES CLOSED YESTERDAY AT 6225 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING A PHILIP MORRIS SPOKESMAN SAID COMMON STOCK PERFORMANCE WASN'T A FACTOR IN DETERMINING THE SIZE OF MR MILES'S LONGTERM BONUS PHILIP MORRIS COS' PRESIDENT AND CHIEF OPERATING OFFICER WILLIAM MURRAY EXERCISED STOCK OPTIONS LAST YEAR TO ACQUIRE 406000 SHARES WITH AN INDICATED PAPER PROFIT OF 199 MILLION AT THE TIME BUT MR MURRAY HASN'T SOLD ANY OF THE SHARES A WHO'S NEWS ARTICLE YESTERDAY INCORRECTLY STATED THAT HE HAD DISPOSED OF THE STOCK 9303300105 930330 EXECUTIVES SHOW OPTIMISM FOR 2ND QUARTER IN SURVEY NEW YORK AP BUSINESS EXECUTIVES HAVE HIGHER EXPECTATIONS FOR SALES AND PROFITS IN THE APRILJUNE QUARTER THAN THEY DID IN THE CURRENT QUARTER DUN & BRADSTREET CORP SAID IN A SURVEY THE PROVIDER OF BUSINESS INFORMATION SAID THE 3000 EXECUTIVES QUESTIONED IN ITS QUARTERLY POLL EXPRESSED OPTIMISM ABOUT THE ECONOMY MORE RESPONDENTS SAID THEY EXPECTED TO INCREASE EMPLOYMENT LEVELS IN THE SECOND QUARTER THE OUTLOOK UNDERSCORES FORECASTS FOR STEADY AND SUSTAINABLE ECONOMIC GROWTH SAID JOSEPH W DUNCAN VICE PRESIDENT AND CHIEF ECONOMIST AT D&B AMONG THE POLL'S FINDINGS AN INDEX SHOWING MANUFACTURERS' EXPECTATIONS FOR HIGHER SALES ROSE 14 POINTS TO 71 THE HIGHEST LEVEL SINCE THE 1989 SECOND QUARTER THE SURVEY'S OVERALL SALESOPTIMISM INDEX INCREASED SIX POINTS TO 61 FROM 55 IN THE FIRST QUARTER REGAINING THE LEVEL REACHED IN THE THIRD QUARTER OF 1992 HOWEVER SECONDQUARTER OPTIMISM FELL AMONG EXECUTIVES IN THE SERVICE ECONOMY AND MR DUNCAN SAID EXPORTING IS BECOMING MORE DIFFICULT BECAUSE OF WEAK ECONOMIC CONDITIONS IN EUROPE AND JAPAN ALL MAJOR INDUSTRY SECTORS EXCEPT SERVICES PLAN TO ADD EMPLOYEES IN THE SECOND QUARTER HE SAID 9303300104 930330 POLITICS & POLICY WHITE HOUSE'S MCLARTY QUIETS HIS OWN CRITICS BUT HAS YET TO SHOW HE CAN TAKE HEAT FOR CLINTON BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS LAST WEEK'S CLIMACTIC SENATE VOTE ON PRESIDENT CLINTON'S BUDGET NEARED THE WHITE HOUSE GREW NERVOUS ABOUT HOLDING ITS FORCES IN LINE TO REASSURE THE WAVERERS MR CLINTON TURNED TO HIS RIGHTHAND MAN CHIEF OF STAFF THOMAS MACK MCLARTY MR MCLARTY CALMED WESTERN DEMOCRATS WORRIED THAT THE BUDGET WAS TOO HARD ON THE MINING TIMBER AND CATTLE INDUSTRIES HE ALSO WOOED LOUISIANA SEN JOHN BREAUX A KEY CONSERVATIVE THE TWO MEN DINED TOGETHER AT A WASHINGTON RESTAURANT AND WATCHED BASKETBALL WITH THE PRESIDENT IN THE WHITE HOUSE SCREENING ROOM WHEN THE VOTES WERE FINALLY COUNTED MR MCLARTY HAD ACCOMPLISHED HIS TASKS AND THE PRESIDENT SCORED ANOTHER IMPRESSIVE VICTORY MACK HAS ESTABLISHED HIMSELF AS A MAJOR FORCE AND MADE A BIG DIFFERENCE SAYS HOWARD PASTER THE WHITE HOUSE'S TOP LOBBYIST AND AN OLD WASHINGTON HAND MR CLINTON'S CHOICE OF MR MCLARTY TO BE CHIEF OF STAFF WAS INITIALLY SCORNED BY MANY WASHINGTON INSIDERS WHO THOUGHT THE 46YEAROLD FORMER ARKLA INC CHIEF EXECUTIVE OFFICER WOULD BE IN OVER HIS HEAD INSTEAD HE HAS PROVEN TO BE AN ABLE POLITICIAN AND AN HONEST BROKER IN INTERNAL DELIBERATIONS HE HAS BROUGHT A SENSE OF ORDER AND DISCIPLINE TO THE WHITE HOUSE STAFF HE HAS USED HIS UNIQUE RAPPORT WITH MR CLINTON HIS CHILDHOOD FRIEND FROM HOPE ARK TO GET THE PRESIDENT TO DO SOME THINGS HE DIDN'T WANT TO SUCH AS LEAVE TO HIS AIDES THE DETAILS OF FINDING THE LAST 5 BILLION IN SPENDING CUTS FOR HIS BUDGET PROPOSAL YET MR MCLARTY'S HARDEST TEST STILL LIES AHEAD HE HAS SHOWN HE CAN BE THE GOOD GUY SMOOTHING OVER DISPUTES AND SOOTHING RUFFLED EGOS BUT HE HASN'T YET SHOWN HE CAN BE THE BAD GUY CRACKING THE WHIP AND SERVING AS A LIGHTNING ROD FOR UNPOPULAR DECISIONS A TALENT THAT WILL INEVITABLY BE IN GREAT DEMAND IN THIS WHITE HOUSE GIVEN THAT MR CLINTON HIMSELF IS A PRESIDENT WHO DOESN'T LIKE TO SAY NO THE CHIEF OF STAFF HAS TO GET TOUGH WITH PEOPLE AND TO DISCIPLINE PEOPLE SAYS JAMES THURBER A POLITICAL SCIENTIST AT AMERICAN UNIVERSITY BUT WITH MR MCLARTY MR THURBER ADDS I HAVEN'T SEEN IT YET ONE WAY OR THE OTHER NOR HAS ANYONE ELSE INDEED AFTER TWO MONTHS IN OFFICE MR MCLARTY IS ONLY JUST NOW BEGINNING TO GET A HANDLE ON HIS JOB PART OF THE PROBLEM WAS THE CIRCUMSTANCES UNDER WHICH HE ARRIVED IN WASHINGTON AT THE TIME OF THE INAUGURATION HE WAS STILL SUFFERING THE LINGERING EFFECTS OF PNEUMONIA AND IT WAS ALL HE COULD DO JUST TO COMPLETE HIS INITIAL TASK FULFILLING MR CLINTON'S PROMISE TO REDUCE THE WHITE HOUSE STAFF BY 25 AS THE PRESIDENT DEMANDED THE EXPERIENCE WAS A GREAT SHOCK TO MACK'S SYSTEM SAYS DEMOCRATIC SEN DAVID PRYOR A FRIEND OF MR MCLARTY'S FROM ARKANSAS EVEN NOW MR MCLARTY STILL FEELS THWARTED ON A NUMBER OF ISSUES HE COMPLAINS FOR EXAMPLE THAT HE IS STILL STRUGGLING TO FIGURE OUT HOW TO GAIN CONTROL OF THE SPRAWLING FEDERAL BUREAUCRACY AND AIM IT TOWARD MEETING THE NEW PRESIDENT'S GOALS I'M STILL LEARNING HE SAYS WITH TYPICAL UNDERSTATEMENT BUT IT'S INCREASINGLY EVIDENT THAT IN HIS QUIET WAY HE IS TAKING CONTROL IN STAFF MEETINGS HIS LINE IS OFTEN A GENTLEMANLY BUT FIRM THIS IS THE WAY I WANT IT AND STAFFERS HAVE BECOME ACCUSTOMED TO DOING IT THAT WAY OR GETTING THE CALL FROM HIM TO EXPLAIN WHY NOT UNLIKE DON REGAN AND JOHN SUNUNU WHITE HOUSE STAFF CHIEFS FOR PRESIDENTS REAGAN AND BUSH MCLARTY DOESN'T HAVE TO PUT PEOPLE DOWN TO LET THEM KNOW HE'S IN CHARGE SAYS JAMES PFIFFNER A POLITICAL SCIENTIST AT GEORGE MASON UNIVERSITY NOR IS MR MCLARTY THE POLITICAL NAIF HE WAS PORTRAYED AS WHEN HE GOT THE JOB HE HAD BEEN QUIETLY COMING TO WASHINGTON FOR YEARS MOSTLY AS A LOBBYIST FOR THE NATURAL GAS INDUSTRY AND HAS LONGSTANDING RELATIONSHIPS WITH SUCH LAWMAKERS AS MR BREAUX IN ADDITION HE HAS SERVED IN THE ARKANSAS LEGISLATURE HEADED THE STATE DEMOCRATIC PARTY AND OVER THE YEARS HONED HIS SKILLS AS AN ADVISER TO AND EMISSARY FOR MR CLINTON BUT THE CHIEF OF STAFF'S MOST IMPORTANT ASSET IS THAT HE IS CLOSE TO AND COMPLETELY TRUSTED BY THE PRESIDENT FRIENDS SINCE KINDERGARTEN THEY HAVE A STRONG EASYGOING BOND MR MCLARTY IS ONE OF THE FIRST WEST WING AIDES TO SEE MR CLINTON EACH MORNING AND THE LAST TO SEE HIM BEFORE HE GOES TO DINNER AT NIGHT THE NOCTURNAL MR CLINTON ALSO TELEPHONES MR MCLARTY AT LEAST TWICE A WEEK AFTER 9 PM HIS BOND WITH THE PRESIDENT IS A BIG REASON WHY HE HAS EMERGED AS A VALUABLE ADJUNCT TO MR PASTER'S LOBBYING SHOP WITH BOTH DEMOCRATS AND REPUBLICANS EAGER TO MEET WITH HIM AND USE HIM AS THEIR CONDUIT TO THE TOP WE KNOW HOW CLOSE HE IS TO THE PRESIDENT AND THAT ALWAYS HELPS WE KNOW HE HAS THE PRESIDENT'S EAR SAYS REP JOSE SERRANO THE NEW YORK DEMOCRAT WHO HEADS THE HOUSE'S HISPANIC CAUCUS WE WERE TAKEN BY THE FACT THAT HE WANTED TO MEET WITH US LAWMAKERS AND WHITE HOUSE STAFFERS ALIKE HAVE COME TO UNDERSTAND THAT WHEN MR MCLARTY SPEAKS IT IS THE MESSAGE OF PRESIDENT CLINTON THAT THEY HEAR THERE IS NO MCLARTY AGENDA SAYS ROBERT RUBIN WHO HEADS THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL THERE'S ONLY ONE AGENDA WHICH IS THE CLINTON AGENDA THAT ISN'T TO SAY MR MCLARTY HAS NO IMPACT ON POLICY THOUGH WITHIN THE WHITE HOUSE THE SELFDESCRIBED KNEEJERK MODERATE IS SEEN AS A LOWKEY BUT PERCEPTIBLY CONSERVATIVE INFLUENCE ON THE PRESIDENT HE SHOWED IT WHEN HE THREW THE ENTIRE WHITE HOUSE STAFF INTO ACTION TO CHANGE THE TONE OF MR CLINTON'S MARKETING OF HIS ECONOMIC PLAN THE PRESIDENT'S BRIEF INITIAL TELEVISED REMARKS WERE TOO STRIDENT AND CONTAINED TOO MUCH CLASSWARFARE RHETORIC MR MCLARTY THOUGHT SO HE INSISTED THAT MORE MODERATE NEW DEMOCRAT LANGUAGE BE INSERTED INTO THE ADDRESS THE PRESIDENT DELIVERED TWO NIGHTS LATER BEFORE A JOINT SESSION OF CONGRESS EVEN AS MR MCLARTY GROWS INCREASINGLY COMFORTABLE WITH THE CHIEF OF STAFF'S ROLE HE HAS CONTINUED TO DO HIS HOMEWORK HE HAS CONSULTED WITH ALMOST EVERY LIVING PERSON WHO PREVIOUSLY HELD THE JOB EVEN HAVING BRUNCH WITH HIS IMMEDIATE PREDECESSOR JAMES BAKER IN THE MIDST OF THE RECENT BUDGET DEBATE HE ALSO HAS WORKED DILIGENTLY OFTEN OVER DINNERS AND AT COCKTAIL PARTIES TO WOO THE WASHINGTON ESTABLISHMENT INCLUDING THE PRESS AND THE LOBBYING COMMUNITY NO AMOUNT OF SCHMOOZING OF COURSE CAN PREPARE MR MCLARTY FOR THE INEVITABLE MOMENT WHEN HE'LL HAVE TO TAKE THE HEAT FOR AN ADMINISTRATION FOULUP OR REBUKE A WAYWARD CABINET SECRETARY BUT HIS FRIENDS INSIST THAT WHEN THAT TIME COMES HE'LL HAVE THE TOUGHNESS TO GO ALONG WITH THE GENTLEMANLINESS IF HE WERE TO KNOCK HEADS HE WOULD DO SO IN A SOUNDPROOF ROOM SEN PRYOR SAYS BUT IT WOULD BE A SHORT MEETING THE POINT WOULD BE DRIVEN HOME 9303300103 930330 WORLD MARKETS TOKYO SHARES RALLY ON OPTIMISM ABOUT CHANCES FOR AN ECONOMIC RECOVERY LONDON PRICES SLIP A WALL STREET JOURNAL NEWS ROUNDUP TOKYO EQUITIES RALLIED 14 MONDAY AS OPTIMISM GREW ABOUT PROSPECTS FOR A JAPANESE ECONOMIC RECOVERY LONDON SHARES DECLINED THOUGH THEY DID STAGE A LATE REBOUND FROM THE DAY'S LOWS FRANKFURT PRICES ROSE ON REKINDLED HOPES FOR A GERMAN INTERESTRATE CUT AND TECHNICAL FACTORS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FIRMED 3278 POINTS FRIDAY JUMPED 25968 TO 1904838 THAT FINISH WAS THE FIRST ABOVE 19000 AND THE HIGHEST LEVEL IN THE FISCAL YEAR ENDING WEDNESDAY THE NIKKEI ENDED THE PREVIOUS FISCAL YEAR AT 1934595 AND ON DEC 31 IT STOOD AT 1692495 DURING THE PAST THREE WEEKS THE BENCHMARK AVERAGE HAS SOARED ALMOST 2300 POINTS OR 14 ON TUESDAY THE NIKKEI FELL 17596 POINTS TO CLOSE THE MORNING SESSION AT 1887242 FIRST SECTION VOLUME MONDAY WAS ESTIMATED AT 650 MILLION SHARES COMPARED WITH 8091 MILLION SHARES IN THE PREVIOUS SESSION ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES BY A LOPSIDED 913175 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH GAINED 1418 POINTS FRIDAY CLIMBED 2682 OR 19 TO 145502 ALSO A NEW CLOSING HIGH FOR THIS FISCAL YEAR INVESTORS WERE CHEERED BY A JAPANESE NEWS REPORT THAT THE ECONOMY APPEARS TO HAVE HIT BOTTOM AFTER A TWOYEAR DOWNTURN AND BY COMING GOVERNMENT SPENDING MEASURES THAT COULD SPARK A RECOVERY THE NIKKEI MOVED HIGHER THROUGHOUT THE SESSION AND HIT A PEAK OF 1912638 FELL BACK THROUGH THE 19000 RESISTANCE LEVEL AND RECONQUERED IT IN AFTERNOON TRADING BUYING WAS BROADBASED LED BY OVERSEAS INVESTORS AND DEALERS THE POLITICAL STRIFE IN RUSSIA WHICH LAST WEEK SENT JITTERS THROUGH THE MARKET IS WELL DISCOUNTED IN JAPANESE SHARE PRICES THOUGH A MAJOR FLAREUP COULD PROMPT PROFITTAKING IN LONDON ON THE FIRST DAY OF THE THREEWEEK EASTER TRADING ACCOUNT THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 64 POINTS TO 28465 THE FT 30STOCK INDEX DROPPED 47 POINTS TO 22099 VOLUME WAS A LIGHT 4847 MILLION SHARES COMPARED WITH 9043 MILLION SHARES IN THE PREVIOUS SESSION THE FTSE 100 INDEX WOULD HAVE ENDED IN POSITIVE TERRITORY BUT FOR A 106POINT LOSS CAUSED BY MANY STOCKS THAT BEGAN THE SESSION TRADING EXDIVIDEND INVESTORS BUYING THESE SHARES ARE NO LONGER ENTITLED TO THE LATEST DIVIDEND PAYOUT AND SO THEIR PRICES ARE MARKED LOWER ACCORDINGLY THE MARKET ALSO WAS DEPRESSED FOR MUCH OF THE SESSION BY WEAKNESS IN THE PHARMACEUTICAL SECTOR IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1363 POINTS TO 167492 NEAR THE INTRADAY HIGH OF 167648 OF THE BLUE CHIPS 27 ADVANCED AND TWO RETREATED THE GAINS WERE PARTLY ATTRIBUTED TO STRENGTH IN THE DAX FUTURES CONTRACT AND TO ENDOFQUARTER WINDOW DRESSING IN WHICH MONEY MANAGERS SPRUCE UP PORTFOLIOS WITH STOCKS THAT HAVE PERFORMED WELL THOUGH THE GERMAN CENTRAL BANK ISN'T EXPECTED TO CUT KEY INTEREST RATES IN A MEETING THIS WEEK IT COULD MAKE ANOTHER REDUCTION IN DOMESTIC OVERNIGHT MONEYMARKET RATES AND THIS BUOYED INVESTORS IN PARIS WHERE A CENTERRIGHT COALITION'S VICTORY SUNDAY IN THE FINAL ROUND OF FRENCH ELECTIONS HAD BEEN EXPECTED STOCKS INITIALLY FELL ON PROFITTAKING AFTER SURGING 45 LAST WEEK BUT FINISHED WITH SMALL GAINS MILAN PRICES ENDED MIXED AS ACTIVITY WAS SHARPLY DIMINISHED BY A WORK SLOWDOWN BY FLOOR TRADERS PROTESTING A CHANGE IN TRADING PROCEDURES A DECISION TO CLOSE ONE OF THREE FLOOR PITS WHICH PROMPTED FEARS OF JOB AND TRADING CUTBACKS THE LATEST ITALIAN POLITICAL DEVELOPMENTS INCLUDING WEEKEND NEWS REPORTS OF OFFICIALS' ALLEGED TIES TO ORGANIZED CRIME DIDN'T AFFECT THE MARKET STOCKHOLM SHARES GAINED IN THAT BOURSE'S THINNEST TURNOVER THIS YEAR AS INVESTORS WERE CAUTIOUS BECAUSE OF POLITICAL UNCERTAINTY ABOUT PROPOSALS TO CUT SWEDISH UNEMPLOYMENT BENEFITS ZURICH STOCKS ROSE AS RUSSIAN POLITICAL TENSIONS ABATED SYDNEY PRICES RALLIED ON THE TOKYO MARKET'S STRENGTH AND SOME AUSTRALIAN GOLD SHARES CONTINUED TO LOG GAINS FROM THE POLITICAL SITUATION IN RUSSIA SEOUL STOCKS FELL BROADLY AS SOUTH KOREAN POLITICAL INSTABILITY KEPT INVESTORS ON THE SIDELINES AMONG CORPORATE DEVELOPMENTS IN LONDON PEARSON SOARED 27 PENCE OR 72 TO 404 PENCE 601 PRETAX PROFIT FOR 1992 FELL 16 TO 1508 MILLION 2244 MILLION FROM A YEAR EARLIER AS RESTRUCTURING COSTS AT THE COMPANY'S OIL SERVICES UNIT OFFSET A STRONG PERFORMANCE BY ITS CORE MEDIA BUSINESS THE EARNINGS AND THE 32 INCREASE IN THE DIVIDEND TO 12 PENCE A SHARE BOTH EXCEEDED PREVIOUS MARKET ESTIMATES LUCAS INDUSTRIES ROSE 2 TO 139 THE MOTOR PARTS COMPANY POSTED PRETAX PROFIT FOR THE SIX MONTHS ENDED JAN 31 OF 52 MILLION AT THE HIGH END OF MARKET EXPECTATIONS AND HELPED BY REDUCTIONS IN COSTS AND WORKING CAPITAL IN WHAT LUCAS SAID WAS A TOUGH BUSINESS CLIMATE YEAREARLIER PRETAX PROFIT INITIALLY REPORTED AS 902 MILLION WAS RESTATED TO 200000 TO EXCLUDE A 90 MILLION CONTRIBUTION FROM A PENSION SURPLUS BRITISH STEEL EASED 1/2 TO 83 1/2 CHAIRMAN ALISTAIR FRAME 64 YEARS OLD PLANS TO RESIGN APRIL 30 FOR HEALTH REASONS AND WILL BE SUCCEEDED BY BRIAN MOFFAT WHO WILL RETAIN THE CHIEF EXECUTIVE'S POST COURTAULDS CLIMBED 7 OR 13 TO 559 THE CHEMICAL MATERIALS COMPANY SAYING ITS PENSION PLAN IS 27 OVERFUNDED WILL REDISTRIBUTE PART OF ITS PENSION SURPLUS OF 189 MILLION INCLUDING 47 MILLION TO IMPROVE BENEFITS FOR PENSION PLAN MEMBERS AND 50 MILLION TO GO TOWARD A REPAYMENT TO COURTAULDS THE REMAINDER WILL REMAIN WITH THE PENSION PROGRAM EUROTUNNEL ADDED 2 TO 492 THE COMPANY WHICH IS BUILDING A TUNNEL UNDER THE ENGLISH CHANNEL SAID INTERNATIONAL ARBITERS RULED IN EUROTUNNEL'S FAVOR ON REQUESTS BY THE CHANNEL TUNNEL CONTRACTORS FOR ADDITIONAL PAYMENTS EUROTUNNEL AND ITS CONTRACTOR CONSORTIUM TRANSMANCHE LINK HAVE BEEN LOCKED IN A DISPUTE ABOUT WHICH ONE SHOULD ABSORB CERTAIN COST OVERRUNS IN FRANKFURT AEG FELL 33 MARKS OR 19 TO 16860 MARKS 10323 THE ELECTRONICS COMPANY A PUBLICLY TRADED UNIT OF DAIMLERBENZ REITERATED THAT IT WILL POST A SLIGHT PRETAX PROFIT FOR 1992 COMPARED WITH A YEAREARLIER LOSS OF 624 MILLION MARKS 3821 MILLION AEG BRUSHED OFF A WEEKEND REPORT OF OPERATING LOSSES LAST YEAR 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 9303300102 930330 DIAGNOSTEK TO SETTLE MEDCO CASE ALBUQUERQUE NM DIAGNOSTEK INC SAID IT AGREED TO PAY MEDCO CONTAINMENT SERVICES INC 3 MILLION TO SETTLE LITIGATION RELATED TO MEDCO'S ATTEMPTED ACQUISITION OF DIAGNOSTEK LAST YEAR THE DISPUTE STEMMED FROM MEDCO'S DECISION TO DROP THE PLANNED 411 MILLION ACQUISITION AFTER DIAGNOSTEK DISCLOSED THAT IT OVERSTATED ITS NET FOR ITS FIRST QUARTER ENDED JUNE 30 1992 BY 798000 OR FOUR CENTS A SHARE BECAUSE OF ERRORS IN RECORDING INVENTORY AND A CUSTOMER REFUND BOTH COMPANIES ARE MAILORDER DRUG DISTRIBUTORS 9303300101 930330 NIH STARTS SAFETY TRIALS OF HIV VACCINE FOR YOUNG WASHINGTON THE NATIONAL INSTITUTES OF HEALTH SAID IT LAUNCHED THE FIRST TRIAL OF EXPERIMENTAL HIV VACCINES IN CHILDREN WHO ARE INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS THAT CAUSES ACQUIRED IMMUNE DEFICIENCY SYNDROME THE SAFETY TRIAL WHICH IS ENROLLING CHILDREN AGED ONE MONTH TO 12 YEARS IS THE FIRST STEP IN DETERMINING WHETHER A THERAPEUTIC VACCINE CAN DELAY THE ONSET OF AIDS IN INFECTED CHILDREN THE VACCINES ARE MADE BY CHIRON CORP'S BIOCINE JOINT VENTURE WITH CIBAGEIGY IN EMERYVILLE CALIF GENENTECH INC OF SOUTH SAN FRANCISCO CALIF AND MICROGENESYS INC OF MERIDEN CONN HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA CALLED THE STUDY A HOPEFUL MILESTONE IN OUR EFFORTS TO AMELIORATE THE TRAGEDY OF HIVINFECTED CHILDREN WHO NOW FACE THE CERTAINTY THAT THEY WILL DEVELOP AIDS SEPARATELY NIH CONFIRMED THAT MICROGENESYS WITHDREW FROM A SIMILAR THREEWAY THERAPEUTIC VACCINE TRIAL IN ADULTS DUE TO A DISAGREEMENT OVER STUDY DESIGN THE COMPANY LAST FALL PROVOKED A CONTROVERSY BY LOBBYING CONGRESS TO ALLOCATE 20 MILLION FOR A DEFENSE DEPARTMENT STUDY OF ITS PRODUCT ALONE 9303300100 930330 MARKETING & MEDIA MURDOCH TAKES CONTROL OF POST APPROVAL IS LIKELY BY PATRICK M REILLY AND MARY LU CARNEVALE STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK RUPERT MURDOCH TOOK CONTROL OF THE NEW YORK POST BUT FAILED TO CONVINCE SOME ANALYSTS HE IS DOING THE RIGHT THING AT THE SAME TIME IT APPEARS MR MURDOCH WILL GET THE FEDERAL APPROVAL HE NEEDS TO OWN BOTH A NEWSPAPER AND A TELEVISION STATION IN NEW YORK A FEDERAL BANKRUPTCY COURT JUDGE ACCEPTED A PLAN UNDER WHICH MR MURDOCH CHAIRMAN OF MEDIA CONCERN NEWS CORP TOOK MANAGEMENT CONTROL OF THE TABLOID NEWSPAPER FROM COURTDESIGNATED OWNER ABRAHAM HIRSCHFELD THE POST WILL NOW BE RUN BY A NEWS CORP SUBSIDIARY WHILE MR MURDOCH NEGOTIATES WITH UNION WORKERS AND FEDERAL REGULATORS TO BUY BACK THE POST SPIRITS WERE HIGH AT THE PAPER AFTER A NEWSROOM APPEARANCE BY MR MURDOCH WHO OWNED THE PAPER FROM 1976 TO 1988 BUT THEY FELL AFTER IT WAS MADE PUBLIC THAT POST EDITOR PETE HAMILL WOULD BE REPLACED WITH KEN CHANDLER THE EXECUTIVE PRODUCER OF FOX BROADCASTING'S A CURRENT AFFAIR MR CHANDLER HAS WORKED AS EDITOR OF NEWS CORP'S BOSTON HERALD AND AS MANAGING EDITOR AT THE POST DURING MR MURDOCH'S EARLIER TENURE MR MURDOCH ALSO NAMED PATRICK PURCELL CHIEF EXECUTIVE OFFICER OF NEWS CORP'S NEWS AMERICA'S PUBLISHING UNIT AS THE POST'S NEW PUBLISHER MR PURCELL WILL REMAIN PUBLISHER AND PRESIDENT OF THE BOSTON HERALD UNDER TERMS OF THE MANAGEMENT CONTRACT MR MURDOCH WILL OPERATE THE POST FOR AT LEAST 60 DAYS COVERING ALL OF ITS OPERATING EXPENSES WHILE THE PAPER IS SAID TO HAVE ADVERTISING AND CIRCULATION REVENUE OF CLOSE TO 1 MILLION A WEEK IT IS ESTIMATED TO HAVE A WEEKLY OPERATING DEFICIT OF AS MUCH AS 300000 AS MR MURDOCH NEGOTIATES WITH THE PAPER'S UNIONS AND CREDITORS HE MUST WORK TO WIN A WAIVER FROM FEDERAL COMMUNICATIONS COMMISSION REGULATIONS THAT BAR CROSSOWNERSHIP OF MEDIA PROPERTIES WHILE OFFICIALS HAVE HINTED AT IT FCC CHAIRMAN JAMES QUELLO INDICATED THE AGENCY IS LIKELY TO APPROVE MR MURDOCH'S REQUEST FOR A WAIVER OF FCC RULES THAT BAR COMMON OWNERSHIP OF A NEWSPAPER AND TELEVISION STATION IN THE SAME MARKET IT LOOKS VERY GOOD HERE HE SAID MR MURDOCH WAS FORCED BY CONGRESS TO SELL THE POST AFTER ACQUIRING NEW YORK'S WNYWTV IN 1986 THIS TIME KEY LAWMAKERS INCLUDING SEN ERNEST F HOLLINGS THE SOUTH CAROLINA DEMOCRAT WHO IS CHAIRMAN OF THE SENATE COMMERCE COMMITTEE HAVE SAID THEY DON'T PLAN TO OPPOSE JOINT OWNERSHIP MR MURDOCH HOWEVER RAN INTO SPIRITED OPPOSITION FROM HISPANIC GROUPS RAINBOW BROADCASTING INC A GROUP OF LOS ANGELESAREA HISPANIC BROADCASTERS AND COMMUNITY LEADERS WHO HAVE BEEN FIGHTING FOX TELEVISION STATIONS INC'S APPLICATION TO RENEW ITS FCC LICENSE FOR KTTVTV IN LOS ANGELES SINCE 1988 AND THE NEW YORK CHAPTER OF THE NATIONAL HISPANIC MEDIA COALITION SAID THEY WOULD OPPOSE MR MURDOCH'S EFFORTS TO OBTAIN THE FCC WAIVER IN A JOINT STATEMENT THE TWO GROUPS SAID THEY WILL FIGHT THE WAIVER THEY CLAIM THE LENGTHY LITIGATION IN THE KTTVTV CASE HAS SHOWN A PATTERN OF MISCONDUCT BY FOX AND MR MURDOCH AND THAT JOINT OWNERSHIP WOULD LEAD TO UNJUSTIFIABLE CONCENTRATION OF MEDIA OWNERSHIP IN THE NEW YORK MARKET IN ADDITION THE GROUPS SAID THAT MR MURDOCH'S EFFORTS TO WIN ADVANCE APPROVAL FOR AN FCC WAIVER APPEAR TO HAVE COMPROMISED THE INTEGRITY OF THE COMMISSION'S REGULATORY PROCEDURES 9303300099 930330 BUSINESS BRIEF CAMBIOR INC MONTREAL MINING COMPANY ADOPTS HOLDERRIGHTS PLAN CAMBIOR INC MONTREAL SAID IT ADOPTED A SHAREHOLDERRIGHTS PLAN TO GUARD AGAINST DISCRIMINATORY OR UNFAIR TAKEOVER TACTICS THE MINING FIRM SAID RIGHTS ISSUED UNDER THE PLAN WILL ENTITLE SHAREHOLDERS TO BUY COMMON SHARES AT A 50 DISCOUNT TO MARKET VALUE UPON THE OCCURRENCE OF CERTAIN EVENTS INCLUDING ACQUISITION OF 20 OR MORE OF THE COMPANY'S COMMON SHARES IN A TRANSACTION NOT PREVIOUSLY APPROVED BY THE BOARD THE RIGHTS PLAN WOULDN'T BE TRIGGERED BY A TAKEOVER BID THAT IS OPEN FOR AT LEAST 90 DAYS THAT EXTENDS TO ALL OUTSTANDING COMMON SHARES AND THAT IS PAYABLE ENTIRELY IN CASH THE PLAN IS SUBJECT TO CONFIRMATION BY A MAJORITY VOTE OF SHAREHOLDERS 9303300098 930330 WHO'S NEWS UNIVERSITY OF CHICAGO TAPS HAMADA TO LEAD ITS BUSINESS SCHOOL CHICAGO THE UNIVERSITY OF CHICAGO HAS NAMED ONE OF ITS OWN PROFESSORS ROBERT HAMADA TO BECOME DEAN OF ITS GRADUATE SCHOOL OF BUSINESS MR HAMADA 55 YEARS OLD SUCCEEDS JOHN P GOULD 54 WHO HAS BEEN DEAN SINCE 1983 MR HAMADA CURRENTLY THE EDWARD EAGLE BROWN PROFESSOR AT THE BUSINESS SCHOOL TAKES OVER THE REIGNS OF A BUSINESS SCHOOL THAT HAS SPAWNED THREE NOBEL PRIZE LAUREATES IN THE STUDY OF ECONOMICS SINCE 1982 HIS EXPERTISE IS IN BUSINESS FINANCE UNIVERSITY OFFICIALS SAID THEY CHOSE MR HAMADA FROM A POOL OF OVER 140 CANDIDATES AFTER A SEVENMONTH SEARCH THAT INCLUDED CANDIDATES FROM OUTSIDE AND INSIDE THE UNIVERSITY ALTHOUGH CHOOSING ONE OF THEIR OWN TO TAKE OVER THE REIGNS UNIVERSITY OF CHICAGO OFFICIALS SAID SUCH A SELECTION ISN'T A SIGNAL THAT THE BUSINESS SCHOOL INTENDS TO STAND PAT THE CURRENT DEAN MR GOULD HAS SAID HE IS STEPPING DOWN BECAUSE HE BELIEVES DEANS OF THE UNIVERSITY'S BUSINESS SCHOOL SHOULDN'T SERVE MORE THAN THE TWO FIVEYEAR TERMS HE IS CONCLUDING MR HAMADA HAS BEEN A FACULTY MEMBER OF THE UNIVERSITY'S BUSINESS SCHOOL SINCE 1966 HE IS AN INTERNATIONALLY KNOWN AUTHORITY IN FINANCE AND CURRENTLY TEACHES COURSES IN CORPORATE FINANCE AND CORPORATE STRATEGY HE RECENTLY COMPLETED A FOURYEAR TERM AS PUBLIC DIRECTOR OF THE CHICAGO BOARD OF TRADE 9303300097 930330 LEISURE & ARTS A MASTER'S WORKSHOP BOULEZ'S SECRET IS TO HAVE NONE BY MARK SWED CONDUCTORS RARELY EXPLAIN JUST WHAT IT IS THAT THEY DO STANDING IN FRONT OF AN ORCHESTRA WAVING A STICK JUST ABOUT THE ONLY TIME THEY DO EXPLAIN TECHNIQUE IS WHEN THEY TEACH STUDENT CONDUCTORS BUT PIERRE BOULEZ RECENTLY LET THE PUBLIC INTO TWO WORKSHOP SESSIONS WITH YOUNG AMERICAN PROFESSIONAL CONDUCTORS AT CARNEGIE HALL NO LAYMAN EMERGED READY TO LEAD AN ORCHESTRA BUT MR BOULEZ'S CRITIQUE OF FOUR BUDDING CONDUCTORS' EFFORTS WITH DEBUSSY'S JEUX AND MESSIAEN'S CHRONOCHROMIE IN FRONT OF THE CLEVELAND ORCHESTRA WHICH HAD JUST RECORDED THEM WITH MR BOULEZ AND WOULD PERFORM THEM IN CARNEGIE BLEW AWAY A LOT OF THE MYSTERY THAT SHROUDS CLASSICAL PODIUMS EVERYWHERE I WILL EXPLAIN WHY I CORRECT THEM MR BOULEZ TOLD THE AUDIENCE WHICH INCLUDED A REMARKABLY LARGE NUMBER OF MUSIC PROFESSIONALS EAGER TO EAVESDROP BECAUSE I THINK IT'S MORE INTERESTING THAN IF WE KEEP SECRETS TO OURSELVES MR BOULEZ HAS A REPUTATION FOR BEING AN EFFICIENT INTELLECTUAL WHO ONLY CARES FOR CLARITY AND ACCURACY IN PERFORMANCE HE DOESN'T USE A BATON RELYING INSTEAD UPON FLUID AND VERY PRECISE HAND SIGNALS THAT RESEMBLE THOSE OF A FRENCH TRAFFIC COP ON THE PODIUM HE IS A BUSINESSLIKE PRESENCE WHO CAN SKILLFULLY CONTROL THE VERY COMPLEX RHYTHMS OF THE PROGRESSIVE 20THCENTURY MUSIC HE CONDUCTS AND COMPOSES BUT NO MATTER HOW SUBTLY AND BEAUTIFULLY HE FOCUSES ORCHESTRAL SONORITY MR BOULEZ HAS BEEN CHIDED THROUGHOUT MUCH OF HIS CAREER FOR THE DETACHMENT OF HIS CONDUCTING BUT ONE OF MR BOULEZ'S SECRETS AS IMPARTED IN THE CARNEGIE WORKSHOP IS THAT HE IS NOT AT ALL FROSTY AND CEREBRAL OVER AND OVER HE URGED THE YOUNG CONDUCTORS TO RELAX AND DEMONSTRATED DOZENS OF WAYS TO MAKE THE MUSIC MORE EXPRESSIVE AND TO SHOW MORE CONSIDERATION AND SUPPORT FOR THE PLAYERS IF YOU DON'T CARE FOR THEM HE CAUTIONED A CONDUCTOR WHO FAILED TO CUE THE HARPS AT THE END OF JEUX THEY WON'T CARE FOR YOU HE TOLD THE CONDUCTORS TO KEEP EVERYONE IN THE ORCHESTRA IN THEIR LINE OF SIGHT YOU MUST HAVE AN EYE IN YOUR HAND HE SHOWED THEM HOW TO BE EVERYWHERE AT ONCE AND ADMONISHED THEM TO THINK OF EVERYTHING TO ANTICIPATE EVERYTHING AND ALWAYS TO LISTEN THE CONDUCTOR SHOULD RECEIVE AS MUCH AS HE GIVES MR BOULEZ SAID AND WHEN A CONDUCTOR MADE A CLAWING MOTION MR BOULEZ SCOLDED HIM SAYING DON'T MAKE GESTURES LIKE A CAT ON THE CONTRARY YOU GIVE THEM SOMETHING YOU DON'T SCOTCH THEM YOU SEND THEM A MESSAGE IN FACT MR BOULEZ'S CONDUCTING SECRETS BOIL DOWN TO ONE A CONDUCTOR SHOULD HAVE NO SECRETS BUT SHOULD INSTEAD DO THE OBVIOUS THING WHEN HE DEMONSTRATED A SIMPLE TRICK LIKE PUTTING HIS ARMS OUT TO SIGNAL A SLOWER TEMPO HE REMARKED WITH A LAUGH IT'S STUPID BUT IT WORKS DURING AN ESPECIALLY KNOTTY PASSAGE IN THE MESSIAEN MR BOULEZ ADVISED A CONDUCTOR WHO WAS ENERGETICALLY FLAPPING HIS BATON ABOUT THAT WHAT THE ORCHESTRA NEEDS IS PRECISE GEOMETRY YOU MAKE TOO MUCH LACE HE SAID THE MORE DIFFICULT THE RHYTHMS ARE THE MORE SIMPLE YOUR GESTURES SHOULD BE THE REMARK GOT A ROUND OF APPLAUSE FROM THE PLAYERS HOWEVER ILLUMINATING SUCH ILLUSTRATIONS MAY HAVE BEEN TO THE CONDUCTORS AND THE AUDITORS THE SURPRISE OF THE WORKSHOPS WAS THE EFFECT THAT THEY HAD ON THE ORCHESTRA UNDER ANY CIRCUMSTANCES THE CLEVELAND IS A SUPERB ORCHESTRA BUT THE CONCERT AFTER THE MASTER CLASSES WILL SURELY ENTER INTO THE ANNALS AS ONE OF THE GREAT NIGHTS IN CARNEGIE THE PROGRAM DEBUSSY'S LA MER ALONG WITH JEUX THE MESSIAEN PIECE AND BARTOK'S FIRST PIANO CONCERTO WITH ANDRAS SCHIFF AS SOLOIST WAS ALL MUSIC THAT IS IN MR BOULEZ'S BLOOD THE ORCHESTRA PLAYED WITH A DEGREE OF FINESSE AND YES WARMTH EXTRAORDINARY EVEN FOR IT THE AUDIENCE TOO WAS IN ECSTASY EVEN FOR THE CONTEMPORARY MUSIC IT USUALLY FLEES SOMEHOW A CONDUCTOR WHO WAS ONCE FEARED BY ORCHESTRAS FOR HIS LASERSHARP EAR AND TONGUE AND BY AUDIENCES FOR HIS UNBENDING MODERNITY HAS WON THE LOVE OF PLAYERS AND LISTENERS ALIKE THIS IS TRUE NOW WHEREVER MR BOULEZ GOES IN DECEMBER HE CONDUCTED THE CHICAGO SYMPHONY IN FOUR PROGRAMS WHICH INCLUDED A BREATHTAKING ACCOUNT OF STRAVINSKY'S FIREBIRD LAST SUMMER HE APPEARED AT THE SALZBURG FESTIVAL AND HIS CURRENT RECORD COMPANY DEUTSCHE GRAMMOPHON WHICH IS RECORDING BOULEZ NOW WITH THE CLEVELAND ORCHESTRA THE CHICAGO SYMPHONY AND THE VIENNA AND BERLIN PHILHARMONICS PUBLISHED A LAVISH BOULEZ BOOK OF THE SORT THAT USED TO BE RESERVED FOR KARAJAN SOME OF THIS NEW ENTHUSIASM FOR MR BOULEZ MAY BE BECAUSE HE HAS KEPT HIMSELF PRETTY MUCH OUT OF CIRCULATION FOR THE PAST 15 YEARS RUNNING IRCAM THE HIGHTECH MUSIC RESEARCH INSTITUTE HE FOUNDED IN PARIS BUT MR BOULEZ RESIGNED THE POST IN 1991 AND HAS ALSO GIVEN UP HIS MUSIC DIRECTORSHIP OF THE PARISIAN NEW MUSIC ENSEMBLE INTERCONTEMPORAIN IN ORDER TO HAVE MORE TIME FOR ORCHESTRAL CONDUCTING COMPOSING AND TEACHING AND NOT ONLY HAS MR BOULEZ'S ILLUMINATING MANNER BEEN MISSED BUT HE IS NOW WITHOUT MUCH CONDUCTING COMPETITION WITH THE DEATHS OF KARAJAN AND BERNSTEIN THE ONLY OTHER CONDUCTOR THESE DAYS ON MR BOULEZ'S LEVEL IS THE PECULIAR RECLUSIVE CARLOS KLEIBER IT ISN'T JUST THAT HE'S SURVIVED HOWEVER THAT ACCOUNTS FOR THE CURRENT BOULEZ BOOM WHILE HE WAS SURVIVING MR BOULEZ WAS BECOMING MORE ADEPT AT GETTING WHAT HE WANTS FROM AN ORCHESTRA HIS EARLY RECORDINGS NOW BEING REISSUED ON SONY STILL SOUND EXTRAORDINARILY INCISIVE BUT HIS NEW DG DISCS WHICH INCLUDE DEBUSSY WITH CLEVELAND AND BARTOK WITH CHICAGO ARE RICHER AND MORE MATURE EARLY THE MORNING FOLLOWING THE CARNEGIE TRIUMPH MR BOULEZ GAVE FINAL EVIDENCE OF HOW UNDETACHED HE IS FROM THE MUSIC HE CONDUCTS THE MUSICIANS HE WORKS WITH OR HIS AUDIENCE HE SPOKE OF WANTING MORE CONTACT BETWEEN MUSICIANS AND AUDIENCES AND COMPLAINED ABOUT THE CONCERT SITUATION THAT FORCED AN EXCITED AUDIENCE OUT INTO THE COLD DIRECTLY AFTER THE PROGRAM HE WOULD HAVE LIKED TO HAVE THEM STAY IN THE HALL AND PARTICIPATE IN A DISCUSSION WITH HIM ABOUT THE PROGRAM HE WENT ON TO STRESS THE NEED FOR WORKSHOPS LIKE THE ONE AT CARNEGIE HE PLANS TO START A SIMILAR PROGRAM FOR YOUNG PROFESSIONALS AT THE MUSIC CONSERVATORY IN PARIS AND HE WILL RETURN TO CARNEGIE IN THE FALL TO LEAD A COMPOSERS' WORKSHOP THOSE ARE HIS CONVENTIONAL IDEAS AS IF TO SHOW THAT HE HAS NOT MELLOWED COMPLETELY AND STILL BREATHES THE SAME FIRE HE DID AS THE RADICAL REFORMER OF FRENCH MUSIC AFTER WORLD WAR II MR BOULEZ HAS A REVOLUTIONARY PLAN FOR THE WORLD'S CONCERT HALLS THEY ARE TOO MUCH LIKE RESTAURANTS HE THINKS SERVING PIECES DE RESISTANCE FROM SEVEN TO ELEVEN INSTEAD THEY SHOULD BE OPEN LONG HOURS AND OFFER AUDIENCES A LIBRARY OF BOOKS SCORES AUDIO TAPES VIDEO TAPES CDS LASER DISCS AND INTERACTIVE COMPUTER FACILITIES SOMEBODY WHO IS AFRAID OF LISTENING TO CONTEMPORARY MUSIC MR BOULEZ PROPOSED COULD HAVE A CDROM EXPLAINING WHAT THE MUSIC IS AND AFTERWARD COULD HAVE DIRECT CONTACT WITH THE MUSIC AND WITH THE PEOPLE WHO MAKE IT THEN YOU WOULD NOT HAVE THESE KINDS OF FRIGHT REACTIONS YOU GET WITH NEW MUSIC THAT FOR ME IS THE FUTURE 9303300096 930330 BUSINESS BRIEF INCO LTD COMPANY PLANS TO CUT 12 OF METAL ALLOYS WORK FORCE INCO LTD SAID IT PLANS TO CUT ABOUT 12 OF THE WORK FORCE OR 340 POSITIONS AT ITS METAL ALLOYS DIVISION RESULTING IN AN AFTERTAX CHARGE OF US13 MILLION AGAINST FIRSTQUARTER EARNINGS INCO A TORONTO NICKEL PRODUCER SAID THE JOB CUTS ARE PART OF A REORGANIZATION OF THE INCO ALLOYS INTERNATIONAL SUBSIDIARY WHICH ALSO WILL INCLUDE CLOSING SOME FACILITIES INCO CURRENTLY HAS 17700 EMPLOYEES ABOUT 2800 OF WHOM WORK AT THE ALLOYS UNIT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY INCO FELL 125 CENTS TO 23375 IN 1992 THE ALLOYS UNIT HAD AN OPERATING LOSS OF US29 MILLION ON SALES OF US557 MILLION OVERALL INCO HAD A NET LOSS FOR THE YEAR OF US176 MILLION ON SALES OF US256 BILLION 9303300095 930330 BUSINESS BRIEF SEQUOIA SYSTEMS INC REVOLVING CREDIT AGREEMENT WITH BANK IS RESTRUCTURED SEQUOIA SYSTEMS INC MARLBOROUGH MASS SAID IT RESTRUCTURED ITS BANK CREDIT AGREEMENT WITH BANK OF BOSTON ELIMINATING A DEFAULT CONDITION BANK OF BOSTON COULD HAVE REQUIRED SEQUOIA TO REPAY A 3 MILLION REVOLVING CREDIT AND 15 MILLION LOAN FOR EQUIPMENT LEASES SEQUOIA IS UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION FOR OVERSTATING REVENUE LAST YEAR AND IS SEEKING A BUYER UNDER THE DEBT RESTRUCTURING SEQUOIA PROVIDED COLLATERAL TO THE BANK AND THE BANK WAIVED CERTAIN CONDITIONS AND EXTENDED THE MATURITY DATE OF THE REVOLVING PACT THIS RESTRUCTURING SHOULD HELP TO REMOVE ONE OF THE FINANCIAL UNCERTAINTIES WHICH HAVE ADVERSELY IMPACTED OUR REVENUE POTENTIAL SAID DICK GOLDMAN CHIEF FINANCIAL OFFICER OF THE COMPUTER MAKER IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY SEQUOIA SHARES CLOSED AT 225 UNCHANGED 9303300094 930330 BUSINESS BRIEF ARGENTARIA SPANISH STATE FIRM UNVEILS DETAILS OF PRIVATIZATION PLAN SPAIN'S STATECONTROLLED ARGENTARIA BANKING GROUP ANNOUNCED NEW DETAILS OF ITS PROPOSED PRIVATIZATION ARGENTARIA OR CORPORACION BANCARIA DE ESPANA SA SAID IT PLANS TO SELL AS MANY AS 314 MILLION COMMON SHARES OR ALMOST 25 OF ITS SHARES INCLUDING AMERICAN DEPOSITARY SHARES IN THE US CONCURRENTLY WITH THE US OFFERING THE BANKING COMPANY WILL OFFER COMMON STOCK TO RETAIL AND INSTITUTIONAL INVESTORS IN SPAIN AND INSTITUTIONAL INVESTORS OUTSIDE THE US AND SPAIN THE SIZE OF EACH OFFERING AND THE PRICE ARE TO BE SET AT A LATER DATE THE US OFFERING IS EXPECTED TO BEGIN IN EARLY MAY WITH MORGAN STANLEY & CO THE LEAD MANAGER ARGENTARIA WAS FORMED IN 1991 AS PART OF THE SPANISH GOVERNMENT'S EFFORTS TO RESTRUCTURE AND REORGANIZE ITS BANK HOLDINGS 9303300093 930330 ADOBE IMAGE EDITING SOFTWARE MOUNTAIN VIEW CALIF ADOBE SYSTEMS INC SAID HEWLETTPACKARD CO AGREED TO BUNDLE ADOBE'S IMAGE EDITING SOFTWARE WITH CERTAIN HP SCANNERS ADOBE SAID HP WILL BUNDLE A VERSION OF PHOTOSHOP AN ADOBE SOFTWARE PROGRAM USED TO MANIPULATE IMAGES THAT ARE RECORDED BY A SCANNER OR GENERATED BY THE COMPUTER WITH HP'S SCANJET IIC SCANNER FOR APPLE COMPUTER INC PERSONAL COMPUTERS 9303300092 930330 S&P'S DOWNGRADES EXCEEDED UPGRADES IN THE FIRST QUARTER NEW YORK STANDARD & POOR'S CORP SAID DEBT RATINGS CHANGES IN THE FIRST QUARTER WERE OVERWHELMINGLY NEGATIVE WITH RATINGS LOWERED ON 2191 BILLION OF DEBT AND RAISED ON 305 BILLION DURING THE QUARTER S&P SAID IT MADE 130 DOWNGRADES AND 81 UPGRADES INCLUDING MORE THAN 100 BILLION OF DEBT OF JUST EIGHT ISSUES THAT ACCOUNTED FOR MOST OF THE 1183 BILLION OF INDUSTRIAL DEBT DOWNGRADED HOWEVER EXCLUDING THE IMPACT OF THESE ISSUERS S&P SAID THE OVERALL US CORPORATE CREDIT QUALITY CONTINUES TO IMPROVE THE HANDFUL OF MAJOR INDUSTRIAL DOWNGRADES INCLUDED INTERNATIONAL BUSINESS MACHINES CORP WESTINGHOUSE ELECTRIC CORP GENERAL MOTORS CORP AND SEARS ROEBUCK & CO AT THE SAME TIME THE REASSESSMENT OF THE AIRLINE INDUSTRY'S COMPETITIVE STRUCTURE LED TO THE DOWNGRADES OF AMR CORP UAL CORP AND DELTA AIR LINES INC RATINGS TO SPECULATIVEGRADE LEVEL IRISH AIRCRAFT LESSOR GPA GROUP LTD ALSO WAS DOWNGRADED ALL OF THESE ISSUERS ACCOUNTED FOR MORE THAN 100 BILLION OF THE 1183 BILLION OF INDUSTRIAL DEBT DOWNGRADED S&P DOWNGRADED 61 BILLION OF FINANCIAL INSTITUTIONS DEBT IN THE QUARTER AND UPGRADED 74 BILLION WHILE 122 BILLION OF UTILITY DEBT WAS DOWNGRADED AND 700 MILLION UPGRADED SEPARATELY S&P SAID MUNICIPAL DEBT RATING DOWNGRADES OUTPACED UPGRADES IN THE FIRST QUARTER WITH RATINGS ON 52 ISSUES TOTALING 31 BILLION LOWERED COMPARED WITH 42 TOTALING 14 BILLION THAT WERE RAISED NOTABLE DOWNGRADES INCLUDED SOUTH CAROLINA AND TWO MAJOR ISSUERS IN CALIFORNIA SAN FRANCISCO AND THE LOS ANGELES UNIFIED SCHOOL DISTRICT 9303300091 930330 WHO'S NEWS ZYNAXIS INC NAMES GREENACRE PRESIDENT AND CHIEF EXECUTIVE MALVERN PA ZYNAXIS INC NAMED MARTYN GREENACRE 51 YEARS OLD A FORMER TOP EXECUTIVE OF SMITHKLINE BEECHAM PLC PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR MR GREENACRE SUCCEEDS THOMAS CEKORIC JR 53 WHO RESIGNED FRIDAY MR CEKORIC REACHED AT HOME SAID THERE WAS NO PROBLEM AT THE COMPANY IN CONNECTION WITH HIS RESIGNATION HE DECLINED TO COMMENT ON WHY HE SUDDENLY RESIGNED AND SAID HE HAD NO IMMEDIATE PLANS TO GO TO ANOTHER COMPANY AS CHAIRMAN OF SMITHKLINE BEECHAM PHARMACEUTICALS EUROPE FROM 1989 TO 1992 MR GREENACRE WAS RESPONSIBLE FOR THE STRATEGIC DIRECTION AND OPERATION OF ALL PHARMACEUTICAL SUBSIDIARIES IN WESTERN EUROPE HE WAS ALSO RESPONSIBLE FOR THE PLANNING AND EXECUTION OF THE 1989 MERGER OF SMITHKLINE BECKMAN AND BEECHAM PHARMACEUTICAL OPERATIONS IN EUROPE IN CONJUNCTION WITH THE MERGER OF THE TWO PARENTS SMITHKLINE BECKMAN INC AND BEECHAM PLC PAUL HORAN CHAIRMAN OF ZYNAXIS SAID MR GREENACRE WILL BRING A WEALTH OF SKILLS AND EXPERIENCE WITH HIM IN THE PHARMACEUTICAL INDUSTRY AND IN MANAGEMENT AND MARKETING ZYNAXIS A BIOTECHNOLOGY COMPANY IS DEVELOPING NEW THERAPEUTIC DRUG DELIVERY SYSTEMS AND ADVANCED CELLULAR DIAGNOSTIC SYSTEMS IT REPORTED A 1992 NET LOSS OF 34 MILLION OR 71 CENTS A SHARE ON REVENUE OF 945000 9303300090 930330 STARTUP FRIENDSHIP AIR APPLIES TO BEGIN OPERATION WASHINGTON FRIENDSHIP AIRLINES A STARTUP CARRIER IN WHICH FORMER CONTINENTAL AIRLINES CHAIRMAN FRANK LORENZO HAS A MAJORITY STAKE APPLIED TO THE TRANSPORTATION DEPARTMENT FOR AN OPERATING CERTIFICATE THE CARRIER WILL BE BASED IN WASHINGTON AND WILL SERVE SHORTHAUL AND MEDIUMHAUL MARKETS IN THE NORTHEAST SAID STEPHEN J KOLSKI PRESIDENT AND CHIEF EXECUTIVE OFFICER MR LORENZO CURRENTLY OWNS A 60 STAKE IN THE CARRIER BUT THAT COULD CHANGE AS OTHER INVESTORS JOIN THE PROJECT SAID MR KOLSKI MR LORENZO WILL BE ON THE COMPANY'S BOARD BUT HAVE NO DAYTODAY OPERATIONAL DUTIES PLANS CALL FOR FRIENDSHIP TO BE A FULLSERVICE AIRLINE FLYING FROM BOSTON TO THE WASHINGTON AREA AND ON TO ORLANDO IT WILL HAVE INITIALLY AT LEAST TWO AIRCRAFT MR KOLSKI WOULDN'T DISCUSS PRICING BUT SAID FRIENDSHIP WILL HAVE A SIMPLIFIED FARE STRUCTURE FRIENDSHIP'S APPLICATION IS LIKELY TO MEET STIFF RESISTANCE FROM SOME OF THE SAME AIRLINE UNIONS MR LORENZO CLASHED WITH WHEN HE RAN CONTINENTAL AND EASTERN AIRLINES AND THOSE UNIONS MAY HOLD GREATER SWAY UNDER THE MORE LABORFRIENDLY CLINTON ADMINISTRATION THAN THEY DID IN THE REAGAN AND BUSH YEARS AFTER HEAVY LOBBYING BY THE AIR LINE PILOTS ASSOCIATION AND THE INTERNATIONAL ASSOCIATION OF MACHINISTS MARYLAND LEGISLATORS SPONSORED A RESOLUTION SAYING THE STATE SHOULDN'T SPEND ANY MONEY TO LURE FRIENDSHIP TO BALTIMORE/WASHINGTON INTERNATIONAL AIRPORT 9303300089 930330 MARKETING & MEDIA CBS ENTERTAINMENT CHIEF TOPPED TISCH IN '92 PAY NEW YORK CBS ENTERTAINMENT PRESIDENT JEFFREY SAGANSKY EARNED NEARLY FOUR TIMES WHAT HIS BOSS CBS INC CHAIRMAN LAURENCE TISCH MADE IN 1992 AND ADDITIONAL LUCRATIVE COMPENSATION AWAITS HIM THIS YEAR MR SAGANSKY WAS PAID A TOTAL OF 61 MILLION IN 1992 ACCORDING TO A PRELIMINARY PROXY STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THAT INCLUDED A 2 MILLION BONUS FOR PILOTING THE NETWORK TO FIRST PLACE IN PRIMETIME RATINGS AND 25 MILLION IN RETROACTIVE BONUSES FOR 1990 AND 1991 THIS YEAR MOREOVER CBS'S HEAD PROGRAMMER STANDS TO EARN AN ADDITIONAL 1 MILLION BONUS IF CBS AS EXPECTED FINISHES IN FIRST PLACE IN PRIMETIME RATINGS WHEN THE TELEVISION SEASON ENDS NEXT MONTH CBS WAS THIRD IN THE RATINGS WHEN MR SAGANSKY FORMERLY PRESIDENT AT TRISTAR PICTURES INC WAS HIRED AS ENTERTAINMENT DIVISION PRESIDENT IN DECEMBER 1989 JUST OVER TWO YEARS LATER CBS FINISHED THE TV SEASON IN FIRST PLACE THE NETWORK HAS REWARDED HIM ACCORDINGLY MR SAGANSKY'S BASE PAY FOR 1992 WAS 1 MILLION IN ADDITION HE RECEIVED 620000 IN OTHER BONUSES AND STOCK OPTION GRANTS TO BUY 2200 SHARES AT 19150 A SHARE BY COMPARISON MR TISCH EARNED 16 MILLION IN 1992 INCLUDING BASE PAY OF 973012 AND A BONUS OF 600000 AS WELL AS STOCK OPTIONS TO BUY 8500 SHARES AT 19150 EACH CBS'S STOCK WAS QUOTED AT 21025 YESTERDAY DOWN 25 CENTS ON THE NEW YORK STOCK EXCHANGE THE FINAL PROXY WHICH ISN'T EXPECTED TO CHANGE MUCH IS DUE OUT APRIL 9 9303300088 930330 INTERNATIONAL CHANCES OF RUSSIAN REFORM HAVE IMPROVED US SAYS WASHINGTON THE CLINTON ADMINISTRATION NOW BELIEVES THAT BORIS YELTSIN HAS EMERGED AS THE VICTOR IN HIS STRUGGLES WITH THE RUSSIAN CONGRESS AND THAT THE PROSPECTS FOR RUSSIAN REFORM AS WELL AS INTERNATIONAL AID ARE BETTER THAN THEY WERE BEFORE LAST WEEK'S CRISIS WHILE THERE WILL BE UPS AND DOWNS A SENIOR ADMINISTRATION OFFICIAL TOLD REPORTERS THE GENERAL DIRECTION OF REFORM IN RUSSIA HAS BEEN STRENGTHENED WHILE YELTSIN HAS TAKEN A BATTERING THE CONGRESS OF PEOPLE'S DEPUTIES HAS TAKEN MUCH MORE OF A BATTERING THE OFFICIAL POINTED IN PARTICULAR TO THREE DEVELOPMENTS AS REAFFIRMING THE PROCESS OF REFORM THE APPOINTMENT OF BORIS FYODOROV AS FINANCE MINISTER MR YELTSIN'S EARLY MOVES TO TAKE CONTROL OF THE CENTRAL BANK AND MR YELTSIN'S AFFIRMED COMMITMENT TO THE INDEPENDENCE OF THE PRESS IN RUSSIA THE SENIOR OFFICIAL SAID THE PAST FEW WEEKS HAVE GIVEN THE WORLD A WAKEUP CALL ABOUT WHAT MIGHT HAPPEN IF REFORM FAILS IN RUSSIA AS A RESULT THE OFFICIAL SAID THE PROSPECTS FOR A NEW INTERNATIONAL AID EFFORT HAVE IMPROVED LOOKING FORWARD TO THIS WEEKEND'S SUMMIT IN VANCOUVER BRITISH COLUMBIA BETWEEN PRESIDENT CLINTON AND MR YELTSIN ANOTHER TOP OFFICIAL SAID THAT ECONOMICS WILL BE THE HEART OF THE MEETING TRADE INVESTMENT AID THAT'S THE WHOLE CRUX MR CLINTON WILL STEP UP HIS CAMPAIGN FOR INCREASED FOREIGN AID TO RUSSIA WITH A SPEECH THURSDAY TO THE AMERICAN SOCIETY OF NEWSPAPER EDITORS