OHIO BANCORP WHICH PUT ITSELF UP FOR SALE AFTER PNC BANK CORP WITHDREW AN ACQUISITION BID SAID IT HAS RECEIVED SEVERAL BIDS AND IS CONSIDERING THEM WE WILL BE CAREFULLY WEIGHING EACH OF THE ALTERNATIVES INCLUDING REMAINING INDEPENDENT SAID OHIO BANCORP WHICH HAS 17 BILLION IN ASSETS THE YOUNGSTOWN COMPANY DECLINED TO IDENTIFY THE BIDDERS OR GIVE A TIMETABLE FOR REVIEWING THE BIDS BANKERS AND ANALYSTS BELIEVE SEVERAL OHIO BANKS MAY BE INTERESTED IN ACQUIRING OHIO BANCORP INCLUDING CLEVELANDBASED SOCIETY CORP AND NATIONAL CITY CORP CINCINNATIBASED FIFTH THIRD BANCORP AND AKRONBASED FIRST BANCORPORATION OF OHIO SPOKESMEN FOR THE BANKS HAD NO COMMENT OR COULDN'T BE REACHED 9303300086 930330 BUSINESS BRIEF HUBCO INC NEW JERSEY BANKING FIRM TO BUY STATEWIDE SAVINGS HUBCO INC SAID IT SIGNED A LETTER OF INTENT TO MERGE STATEWIDE SAVINGS BANK JERSEY CITY NJ INTO HUBCO'S HUDSON UNITED BANK SUBSIDIARY STATEWIDE HAS ASSETS OF 525 MILLION WITH 13 BRANCH OFFICES IN BERGEN ESSEX HUDSON AND UNION COUNTIES THE SAVINGS BANK WILL BE CONVERTED TO A STOCK INSTITUTION THEN ACQUIRED FOR HUBCO COMMON SHARES THE NUMBER OF SHARES TO BE ISSUED WILL BE BASED ON STATEWIDE'S VALUE AS DETERMINED BY AN INDEPENDENT APPRAISER HUBCO'S PRESIDENT AND CHIEF EXECUTIVE OFFICER KENNETH T NEILSON SAID IN UNION CITY NJ THAT THE ACQUISITION WOULDN'T BE DILUTIVE STATEWIDE IS PRIMARILY A LENDER OF MORTGAGES FOR ONETOFOUR FAMILY HOUSING 9303300085 930330 WHO'S NEWS JACOBS ENGINEERING GROUP INC JACOBS ENGINEERING GROUP INC PASADENA CALIF JAMES L RAINEY JR WAS ELECTED A DIRECTOR INCREASING THE BOARD TO 11 MR RAINEY 63 YEARS OLD NOW CHAIRMAN OF THE NATIONAL SERVICE CORP PREVIOUSLY WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FARMLAND INDUSTRIES INC JACOBS IS AN ENGINEERING DESIGN ENVIRONMENTAL AND HAZARDOUS WASTE MANAGEMENT AND CONSTRUCTION FIRM 9303300084 930330 MERGER WILL CREATE HUGE MONEY MANAGER BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A MOVE THAT WILL INSTANTLY CREATE A HUGE PUBLICLY TRADED MONEYMANAGEMENT FIRM NEW ENGLAND MUTUAL LIFE INSURANCE CO AGREED TO MERGE ITS INVESTMENTMANAGEMENT ARM WITH REICH & TANG LP A SMALL PUBLICLY TRADED MUTUALFUND PARTNERSHIP THE COMPANIES SAID AT FIRST GLANCE THE DEAL HAS THE APPEARANCE OF A MINNOW SWALLOWING A WHALE IT WOULD MEAN A LEAP IN ASSETS UNDER MANAGEMENT FOR REICH & TANG WHICH OVERSAW JUST 87 BILLION IN ASSETS AT THE END OF 1992 NEW ENGLAND INVESTMENT COS WHICH MANAGED 505 BILLION DOESN'T CURRENTLY TRADE PUBLICLY BECAUSE IT IS A UNIT OF A GIANT INSURER OWNED BY POLICYHOLDERS THROUGH THE MERGER HOWEVER NEW ENGLAND MUTUAL WOULD ACHIEVE TWO GOALS THE INSURER WOULD GREATLY BOOST ITS CAPITAL A MEASURE OF FINANCIAL STRENGTH AND IT WOULD KEEP CONTROL OF THE COMBINED INVESTMENTMANAGEMENT OPERATION BY RETAINING A 70 STAKE IN THE MUCHLARGER REICH & TANG FOLLOWING THE MERGER THE POSTMERGER REICH & TANG WOULD MANAGE 59 BILLION MAKING IT THE EIGHTHLARGEST PUBLICLY TRADED INVESTMENT MANAGEMENT FIRM IN TERMS OF ASSETS MUTUAL FUNDS WOULD ACCOUNT FOR MORE THAN 10 BILLION OF THIS TOTAL ALTHOUGH THE MERGER WILL MORE THAN TRIPLE THE NUMBER OF REICH & TANG PARTNERSHIP UNITS OUTSTANDING OPERATING EARNINGS PER UNIT WILL INCREASE REICH & TANG SAID THE PRICE OF REICH & TANG PARTNERSHIP UNITS JUMPED ON THE NEWS CLOSING THE DAY AT 18 UP FROM 16 ON FRIDAY THE MERGER IS SUBJECT TO THE APPROVAL OF REICH & TANG'S PUBLICLY TRADED LIMITEDPARTNERSHIP UNITHOLDERS ITS MUTUALFUND SHAREHOLDERS AND CLEARANCE BY REGULATORS AS WELL BOTH COMPANIES' BOARDS HAVE APPROVED THE MERGER NEW ENGLAND MUTUAL WILL RECEIVE 22 MILLION LIMITED PARTNERSHIP UNITS NEWLY ISSUED BY REICH & TANG VALUED AT 350 MILLION BASED UPON FRIDAY'S CLOSING PRICE FOR REICH & TANG NEW ENGLAND MUTUAL SAYS THAT THE TRANSACTION WOULD ADD 200 MILLION TO NEW ENGLAND MUTUAL'S STATUTORY SURPLUS BOOSTING ITS SURPLUS RATIO TO BETWEEN 65 AND 7 UP FROM 54 THE SURPLUS RATIO IS CONSIDERED AN IMPORTANT MEASURE OF AN INSURANCE COMPANY'S FINANCIAL STRENGTH NEW ENGLAND MUTUAL IS A MUTUAL LIFE INSURANCE COMPANY MEANING THAT IT IS OWNED BY ITS POLICYHOLDERS RATHER THAN BY SHAREHOLDERS MUTUAL INSURANCE COMPANIES DON'T HAVE TO PUBLIC STOCK AND BOND MARKETS MAKING IT DIFFICULT FOR THEM TO RAISE CAPITAL SOMETHING THAT MANY INSURANCE COMPANIES WOULD LIKE TO DO NOW THE DEAL WITH REICH & TANG ALLOWS NEW ENGLAND MUTUAL TO IN EFFECT BRING PART OF ONE OF ITS SUBSIDIARIES PUBLIC BOOSTING ITS CAPITAL THE BIG INSURER PREVIOUSLY SAID IT WAS CONSIDERING RAISING CAPITAL BY TAKING ITS INVESTMENT MANAGEMENT SUBSIDIARY PUBLIC IN AN INITIAL STOCK OFFERING BUT NEW ENGLAND MUTUAL EXECUTIVES SAY THAT THEY GOT A BETTER PRICE FOR THEIR SUBSIDIARY THROUGH THE MERGER BECAUSE THEY COULD BENEFIT FROM THE TAX BENEFITS OF REICH & TANG'S STATUS AS A MASTER LIMITED PARTNERSHIP EARNINGS BY REICH & TANG AREN'T TAXED AT THE CORPORATE LEVEL BUT PASSED ALONG DIRECTLY TO OWNERS OF ITS UNITS REICH & TANG IS ONE OF FOUR MONEY MANAGERS TRADING PUBLICLY AS MASTER LIMITED PARTNERSHIPS THEY WILL LOSE THEIR FAVORABLE TAX STATUS AT THE END OF 1997 ACCORDING TO MARY PAT THORNTON AN INVESTMENT BANKER AT PUTNAM LOVELL INC WHICH ADVISED NEW ENGLAND IN THE DEAL EQUITABLE COS ANNOUNCED A SIMILAR MERGER OF A MONEY MANAGEMENT SUBSIDIARY INTO A PUBLICLY TRADED LIMITED PARTNERSHIP IN JANUARY HOWEVER EQUITABLE ALREADY OWNED 55 OF ALLIANCE CAPITAL MANAGEMENT LP WHICH MERGED WITH EQUITABLE CAPITAL MANAGEMENT CORP NEW ENGLAND MUTUAL HADN'T ANY PRIOR RELATIONSHIP WITH REICH & TANG PETER S VOSS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEW ENGLAND INVESTMENT COS WILL BE CHIEF EXECUTIVE OF REICH & TANG FOLLOWING THE MERGER OSCAR TANG THE 54YEAROLD PRESIDENT AND CHIEF EXECUTIVE OF REICH & TANG WILL BECOME A DIRECTOR HE WON'T ANY LONGER BE AN EMPLOYEE BUT WILL BECOME A CONSULTANT TO REICH & TANG BOTH ON THE TRANSITION AND ON INVESTMENT MATTERS MR VOSS SAID THE PARTNERSHIP VEHICLE IS AN ATTRACTIVE VEHICLE FOR FUTURE ACQUISITIONS HE SAID HE WON'T SPECULATE ON WHAT TYPES OF ACQUISITIONS THOSE MIGHT BE NEW ENGLAND INVESTMENT COS ALREADY ACTS AS A HOLDING COMPANY FOR A DIVERSE SET OF STOCK BOND AND REALESTATE INVESTMENT OPERATIONS SOME OF NEW ENGLAND INVESTMENT'S SUBSIDIARIES THAT WILL BE PART OF REICH & TANG INCLUDE LOOMIS SAYLES & CO COPLEY REAL ESTATE ADVISORS AND CAPITAL GROWTH MANAGEMENT LP WHICH ADVISES THREE MUTUAL FUNDS RUN BY G KENNETH HEEBNER AN ACCLAIMED MONEY MANAGER MR VOSS SAID THAT REICH & TANG'S MONEYMANAGEMENT OPERATIONS WILL CONTINUE TO OPERATE INDEPENDENTLY WE THINK IT'S IMPORTANT FOR THESE FIRMS TO RETAIN THEIR IDENTITY IN THE INVESTMENT COMMUNITY MR VOSS SAID REICH & TANG OPERATES 20 MUTUAL FUNDS OF WHICH 18 ARE MONEYMARKET FUNDS OFTEN RUN UNDER THE NAME OF THE BROKERAGE FIRM OR OTHER FINANCIAL INTERMEDIARY THAT SELL THEM IT RUNS A VERY SMALL GOVERNMENT SECURITIES FUND AND A 100 MILLION STOCK FUND IT ALSO INVESTS IN STOCKS FOR PENSION FUNDS MR TANG SAID THE FIRM HAD A STRONG POSITION IN TWO VERY NARROW CAPABILITIES BUT THAT IT HAD A NEED TO GROW SUCH GROWTH WOULD COME FASTER AND MORE ECONOMICALLY THROUGH THE MERGER HE SAID RATHER THAN THROUGH INTERNALLY GENERATED EXPANSION 9303300083 930330 HAWAIIAN CHARITABLE TRUST ACQUIRES 5 STAKE IN SAKS NEW YORK A HAWAIIAN CHARITABLE TRUST DEDICATED TO THE EDUCATION OF HAWAIIAN YOUTH ACQUIRED A 5 EQUITY STAKE IN SPECIALTY RETAILER SAKS FIFTH AVENUE FOR 50 MILLION THE INVESTMENT EARMARKED FOR EXPANSION OF SAKS STORES REPRESENTS PART OF THE PLACEMENT OF 300 MILLION IN GROWTH CAPITAL PROVIDED LAST YEAR BY SAKS'S PARENT INVESTCORP INTERNATIONAL INC OF BAHRAIN LAST JANUARY INVESTCORP WHICH LED A 16 BILLION BUYOUT OF THE NEW YORKBASED RETAILER IN 1990 SOLD AN 11 STAKE IN SAKS TO SAUDI INVESTORS THE REMAINING EQUITY IN SAKS IS HELD BY INVESTCORP ITS CLIENTS AND SAKS MANAGEMENT SAKS EXECUTIVES SAID THAT INVESTCORP SOLD THE EQUITY POSITION TO KAMEHAMEHA SCHOOLS/BISHOP ESTATE A TRUST THAT IS MADE UP PRIMARILY OF LAND HOLDINGS THROUGHOUT THE HAWAIIAN ISLANDS THE TRUST WAS ESTABLISHED IN 1984 BY THE GREATGRANDDAUGHTER OF KING KAMEHAMEHA I WHO WAS KING OF THE HAWAIIAN ISLANDS FROM 1790 TO 1819 PHILIP MILLER SAKS VICE CHAIRMAN SAID THAT THE RELATIONSHIP WITH THE KAMEHAMEHA SCHOOLS/BISHOP ESTATES WILL FACILITATE SAKS FIFTH AVENUE'S EXPANSION INTO HAWAII AND POSSIBLY THE FAR EAST 9303300082 930330 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MARCH 10 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9303300081 930330 THE NEW WORLD OF NETWORKING BY KEVIN PRITCHETT THE TALK OF THE RECENT PRESIDENTIAL CAMPAIGN WAS THE ADVENT OF TALKSHOW DEMOCRACY TYPIFIED BY THE OWLISH LARRY KING AND THE DELIGHTFULLY CORPULENT RUSH LIMBAUGH YET EVEN AS THE PUNDITS DECLARE A NEW TREND TECHNOLOGY HAS LEAPT TO ANOTHER LEVEL THE SAME ENERGETIC OPINIONIZING THAT DRIVES TALK RADIO IS FINDING A NEW OUTLET IN COMPUTER NETWORKS AND SEMIINTERACTIVE SATELLITE TV SHOWS LIBERALS WERE THE FIRST TO RECOGNIZE THE POSSIBILITIES OF THE NEW TECHNOLOGY BUT CONSERVATIVES ARE CATCHING ON IF MR LIMBAUGH IS ANY GAUGE THEY WON'T BE SHY ABOUT JOINING THE POLITICAL BATTLE AT TECHNOLOGY'S CUTTING EDGE THE GRANDDADDY OF POLITICAL COMPUTER NETWORKS IS THE LIBERAL PEACENET IT WAS STARTED IN 1985 BY THE SAN FRANCISCOBASED INSTITUTE FOR GLOBAL COMMUNICATIONS AND HAS MORE THAN 7500 USERS IT ALSO CONNECTS MORE THAN 3000 LIBERAL ORGANIZATIONS GROUPS LIKE GREENPEACE THE WORLD FEDERALIST ASSOCIATION AND SANE/FREEZE NOW THREE NEW ELECTRONIC FORUMS HAVE SPRUNG UP FOR CONSERVATIVES TWO TAKE THEIR INSPIRATION FROM PEACENET A THIRD IS THE CONSERVATIVE EQUIVALENT OF PRESIDENT CLINTON'S VIDEO TOWN MEETINGS TOWN HALL A JOINT VENTURE OF NATIONAL REVIEW MAGAZINE AND THE HERITAGE FOUNDATION IN WASHINGTON HAS ABOUT 700 INDIVIDUAL USERS AND CONNECTS 15 ORGANIZATIONS LIKE PEACENET IT IS REACHED THROUGH A COMPUTER AND A MODEM USING A NETWORK PHONE NUMBER AND AN ACCESS CODE TO JOIN REQUIRES A ONETIME 20 FEE BEYOND THAT THE USER IS BILLED FROM 26 CENTS TO 66 CENTS A MINUTE DEPENDING ON THE TIME OF DAY HE LOGS ON WHAT DOES A SUBSCRIBER GET FOR HIS MONEY WITH A MOUSE HE CAN CLICK ON ANY ONE OF THE 38 AREAS OF TOWN HALL THESE INCLUDE A REPOSITORY OF HERITAGE AND NATIONAL REVIEW PUBLICATIONS A DAILY SUMMARY OF WASHINGTON NEWS WIRE STORIES FROM ASSOCIATED PRESS ELECTRONIC MAIL THE VOTING BOOTH WHERE USERS CAN VOTE ON POLITICAL ISSUES IN THE NEWS AND THE BILL BUCKLEY WORD OF THE DAY WITH A DEFINITION AND THE WORD SHOWN IN CONTEXT FROM ONE OF MR BUCKLEY'S BOOKS TOWN HALL ALSO PROVIDES ACCESS TO ONLINE UNIVERSITY WHERE PROMINENT PROFESSORS ACTUALLY TEACH A COURSE OVER THE NETWORK THIS SERVICE REQUIRES A SEPARATE FEE ABOUT 700 AND INCLUDES INTERACTIVE ACCESS TO THE INSTRUCTOR AND RELEVANT TEXTS AND MATERIALS AMONG ITS OFFERINGS IS A COURSE ON TS ELIOT AND ERNEST HEMINGWAY AND ANOTHER ON AMERICAN POLITICAL THOUGHT FROM 1860 TO THE PRESENT AIMNET THE NETWORK OF ACCURACY IN MEDIA PROVIDES SIMILAR SERVICES TO CONSERVATIVES STARTED IN 1990 THE NETWORK HAS ABOUT 200 MEMBERS PAYING ABOUT 6 A MONTH PLUS AN ACCESS FEE THAT COMES TO BETWEEN 12 CENTS AND 18 CENTS A MINUTE AIMNET HAS A DATABASE OF NEWS ARTICLES AND PHONE NUMBERS FOR MEDIA ORGANIZATIONS SO USERS CAN VENT THEIR FRUSTRATION ABOUT MEDIA BIAS THE NETWORK HAS RECEIVED ABOUT 30000 CALLS SINCE IT WAS FIRST SET UP TOWN HALL AND AIMNET DIFFER FROM PEACENET IN ONE CRUCIAL RESPECT APART FROM POLITICS THEIR USERS CAN TALK DIRECTLY TO OTHER USERS ON THE NETWORK THROUGH ONLINE CONFERENCES IN WHICH GROUPS CAN CAUCUS AND PARLEY ABOUT ANY ISSUE A SIMILAR SORT OF INTERACTIVE DEBATE IS POSSIBLE ON THE NEW SATELLITE TELECONFERENCING NETWORK CALLED NATIONAL EMPOWERMENT TELEVISION OR NET IT IS THE BRAINCHILD OF PAUL WEYRICH THE PRESIDENT OF THE FREE CONGRESS FOUNDATION WHO SEES INTERACTIVE TELEVISION AS THE NEXT GREAT TOOL PEOPLE CAN USE TO MAKE THEIR VOICES HEARD IF WE CAN TALK TO PEOPLE AND TRANSMIT THOSE IDEAS TO ELECTED OFFICIALS AND POLL PEOPLE AND HELP PEOPLE TO NETWORK THAT WILL BE A MAJOR STEP FORWARD MR WEYRICH SAYS UNIVERSITIES POLITICAL GROUPS OR ANYONE WITH A SATELLITE DISH CAN TUNE INTO NET'S SATELLITE SIGNAL THOUGH ONLY VIEWERS REGISTERED WITH NET CAN CALL INTO A SHOW AND ASK QUESTIONS OF THE GUESTS CURRENTLY FOUR SHOWS ARE ON THE SCHEDULE UPCLOSE LIVE WHICH SPOTLIGHTS POLITICAL TOPICS LIKE SCHOOL CHOICE CAMPUS CONNECTION WHICH IS GEARED TOWARD THE ISSUES AFFECTING STUDENTS FAMILY FORUM LIVE A SHOW ADDRESSING FAMILY ISSUES AND SECOND LOOK LIVE WHICH DEALS WITH CONSERVATIVE MINORITY OUTREACH AND RELATED MATTERS DURING EACH SHOW WHICH IS AIRED ABOUT ONCE A MONTH AND USUALLY LASTS ABOUT AN HOUR VIEWERS CAN CALL IN AND ASK QUESTIONS OF THE HOSTS AND GUESTS UPCLOSE LIVE FOR EXAMPLE HAS ACTION ITEMS A SEGMENT IN WHICH GUESTS GIVE INSTRUCTIONS AND INFORMATION TO CALLERS LIKE TELEPHONE NUMBERS AND ADDRESSES FOR GRASSROOTS POLITICAL GROUPS NET HAS ABOUT 100 REGISTERED VIEWERS INCLUDING 15 CAMPUS SITES ACCORDING TO MOLLY BALDWIN AN NET PRODUCER AND HOST OF CAMPUS CONNECTION A SHOW COSTS ABOUT 50 FOR STUDENTS WHO USUALLY POOL THEIR RESOURCES AT THEIR CAMPUS'S SATELLITERECEIVING FACILITIES NONSTUDENT GROUPS AND INDIVIDUAL USERSSOCALLED AFFILIATES OF NETMUST PAY 100 A SHOW ALL THESE FORUMS LIBERAL AND CONSERVATIVE HAVE BEEN HOTBEDS OF POLITICAL ACTIVITY PEACENET WAS BUZZING DURING THE PRESIDENTIAL ELECTION FOR EXAMPLE CLINTON HAD A CONTACT LIST ON PEACENET SAYS JILLAINE SMITH OF THE INSTITUTE FOR GLOBAL COMMUNICATIONS SO PEOPLE COULD EMAIL A QUESTION TO THE CLINTON CAMPAIGN AND THE CAMPAIGN WOULD ANSWER BACK DURING THE GULF WAR SHE ADDS PEOPLE WANTED INFORMATION ON MARCHES RALLIES AND LECTURES WE WOULD COLLECT A LOT OF INFORMATION AND CREATE A CALENDAR OF EVENTS DURING THE CLARENCE THOMAS HEARINGS AIMNET USERS SWAPPED INFORMATION AND COMPARED NOTES ON THE HEARINGS AND THE EVENTS AND PEOPLE SURROUNDING THEM USERS OF TOWN HALL HAVE BEEN ABLE TO AFFECT POLICY DIRECTLY THERE WAS ONE WOMAN IN NEW HAMPSHIRE WHO HAD BEEN A MEMBER OF TOWN HALL FOR A WHILE HERITAGE'S JEANNE ALLEN RECALLED HER PET PEEVE IS SEX EDUCATION SHE HAD A FIT WHEN SHE HEARD THAT HER SON'S SCHOOL WAS HANDING OUT CONDOMS SHE WENT BALLISTIC ON TOWN HALL SHE SENT A MESSAGE TO PEOPLE ON THE NETWORK AND SHE GOT NO LESS THAN 60 RESPONSES WITH PRESSURE FROM THE TOWN HALL USERS SHE GOT THE TOWN SHE LIVED IN TO RECONSIDER THEIR POLICY EVEN SO FOR SOME CONSERVATIVES THE NETWORKS' SUBSCRIBER NUMBERS HAVE BEEN DISAPPOINTING TO HAVE A LASTING EFFECT THEY ARGUE MANY MORE PEOPLE WILL HAVE TO BE BROUGHT ONLINE THIS MAY BE TRUE BUT BEING IN OPPOSITION HAS A WAY OF GALVANIZING POLITICAL MOVEMENTS AND PUSHING NEW PEOPLE INTO THE DEBATE AS PUBLISHERS OF OPINION MAGAZINES HAVE KNOWN FOR SOME TIME THE AMERICAN SPECTATOR FOR EXAMPLE HAS NEARLY DOUBLED ITS CIRCULATION SINCE TAKING ON ANITA HILL AND HILLARY CLINTON AND MR LIMBAUGH'S APPEAL SEEMS TO GROW WITH EVERY CLINTON MISSTEP IN ANY CASE CONSERVATIVES HOPE THAT THE NEW TECHNOLOGY WILL COME INTO ITS OWN AS THE NEED FOR OPPOSITION TO MR CLINTON'S LIBERAL AGENDA BECOMES EVER MORE URGENT MR PRITCHETT IS A WRITER ON THE JOURNAL'S EDITORIAL PAGE 9303300080 930330 BUSINESS BRIEF QUICK & REILLY GROUP INC PROFIT ROSE 31 ON INCREASE IN REVENUE IN FOURTH PERIOD DISCOUNT BROKER QUICK & REILLY GROUP INC SAID IT HAD STRONG FOURTHQUARTER REVENUE AND NET INCOME FUELED BY STRONG INVESTOR INTEREST IN THE EQUITY AND BOND MARKETS QUICK & REILLY SAID NET INCOME FOR THE QUARTER ENDED FEB 28 ROSE 31 TO 111 MILLION OR 111 A SHARE FROM 85 MILLION OR 89 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 18 TO 619 MILLION IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AFTERNOON QUICK & REILLY SHARES WERE QUOTED AT 2725 UP 1375 FOR THE FISCAL YEAR QUICK & REILLY REPORTED NET OF 287 MILLION OR 290 A SHARE COMPARED WITH 227 MILLION OR 244 A SHARE IN 1992 REVENUE ROSE 27 TO 1959 MILLION FROM 154 MILLION BASED IN NEW YORK THE COMPANY RECENTLY OPENED FOUR NEW BRANCHES INCREASING ITS NETWORK TO 82 OFFICES IN DECEMBER ITS NEW YORK STOCK EXCHANGE SPECIALIST UNIT JJC SPECIALIST CORP ADDED 30 ADDITIONAL STOCKS THROUGH A MERGER WITH STOKES HOYT & CO 9303300079 930330 BUSINESS BRIEF TRANSAMERICA INSURANCE CO PROPOSITION 103 AGREEMENT PUTS REBATES AT 17 MILLION TRANSAMERICA INSURANCE CO SAID IT WILL PAY 17 MILLION IN REBATES TO 246585 POLICYHOLDERS IN CALIFORNIA UNDER AN AGREEMENT REACHED WITH THE STATE'S INSURANCE COMMISSIONER THE SETTLEMENT COVERS POLICYHOLDERS FROM 1989 WHO ARE ENTITLED TO AN ESTIMATED 2 BILLION IN REBATES UNDER PROPOSITION 103 THE INSURANCE ROLLBACK INITIATIVE APPROVED BY VOTERS IN 1988 SO FAR 10 COMPANIES INCLUDING SAN FRANCISCOBASED TRANSAMERICA HAVE AGREED TO 535 MILLION IN PAYMENTS WITH MOST OF THE STATE'S OTHER 700 INSURERS CONTINUING LEGAL CHALLENGES TO THE ASSESSMENTS LAST WEEK NORTHERN CALIFORNIA AUTOMOBILE AGREED TO REFUND 72 MILLION TO ONE MILLION CUSTOMERS 9303300078 930330 PRICING HEALTH CARE DRUG MAKERS' IMAGE ILLS ARE SELFINDUCED BY MICHAEL WALDHOLZ AS THE CLINTON ADMINISTRATION HAMMERS AWAY AT THE PHARMACEUTICAL INDUSTRY ONE QUESTION STANDS OUT ARE THE WITHERING ATTACKS JUSTIFIED UNTANGLING THE FACTS ISN'T A SIMPLE TASK BUT WHAT IS CLEAR IS THAT THE BIG DRUG MAKERS HAVE FAILED MISERABLY TO EXPLAIN THEMSELVES TO THE AMERICAN PEOPLE FIERCELY COMPETITIVE DRUG COMPANIES ARE ACCUSTOMED TO ZEALOUSLY GUARDING PRICING POLICIES AS WELL AS ALMOST EVERYTHING ELSE THEY DO IT'S NO WONDER THAT DRUG COMPANY EXECUTIVES AND THEIR PUBLIC RELATIONS OPERATIONS HAVE BEEN UNPREPARED AND ILLEQUIPPED TO PARRY PRICEGOUGING CHARGES THAT HAVE SUCCEEDED IN TARRING A BUSINESS WHOSE CENTRAL OBJECTIVE DEVELOPING THERAPIES AGAINST DISEASE IS ABOUT AS WORTHY AS ANY CORPORATE ENTERPRISE IT'S NOT AS IF DRUG MAKERS CAN'T COMMUNICATE BUT UNTIL RECENTLY IT WAS DOCTORS NOT PATIENTS INSURERS OR THE GOVERNMENT WHO WERE THE BUSINESS'S PRIZED CUSTOMERS OVER THE YEARS DRUG COMPANIES HAVE PERFECTED THE ART OF CURRYING FAVOR WITH THE MEDICAL COMMUNITY OFTEN SHOWERING IT WITH GIFTS VACATION TRIPS FREE SAMPLES MAILINGS ADVERTISEMENTS AND ALL MANNER OF ATTENTION ONLY IN THE PAST FEW MONTHS HAS THE INDUSTRY REACHED OUT TO THE GENERAL PUBLIC WITH IMAGE ADS DESCRIBING THE COMPANIES' CONTRIBUTIONS TO FIGHTING DISEASE AND THE COSTEFFECTIVENESS OF THEIR PRODUCTS BUT APPARENTLY THE MESSAGE ISN'T GETTING THROUGH INDEED A RECENT WALL STREET JOURNAL/NBC NEWS POLL FOUND THAT ONLY 18 OF THE PUBLIC HAS A POSITIVE VIEW OF DRUG MAKERS THE COMPANIES SEPARATELY AND AS A GROUP SIMPLY HAVE BEEN UNABLE TO EXPLAIN THAT DISCOVERING NEW MEDICINES IS EXTRAORDINARILY EXPENSIVE AND FRAUGHT WITH A HIGH RATE OF FAILURE ONLY ONE IN EIGHT EXPERIMENTAL MEDICINES MAKES IT OUT OF HUMAN TESTING AND ONTO PHARMACY SHELVES BECAUSE THE COMPANIES RARELY ACKNOWLEDGE THE FAILURES OR SHARE THE INSIDE HUMAN DRAMA ABOUT THEIR RISKTAKING SCIENTISTS THE PUBLIC AND GOVERNMENT OFFICIALS ARE UNSYMPATHETIC TO THE KINDS OF FACTS THE DRUG MAKERS THROW OUT IN LOBBYING AGAINST PRICE CONTROLS FEW CARE OR EVEN BELIEVE COMPANIES THAT COMPLAIN THAT PRICE CONTROLS IN OTHER COUNTRIES HAVE SQUELCHED INNOVATION BY FOREIGNBASED PHARMACEUTICAL MAKERS THE WHITE HOUSE IS SIMPLY EXPLOITING THIS POOR PUBLIC IMAGE AS WELL AS THE FACT THAT THE INDUSTRY ITSELF IS DIVIDED AS TO HOW BEST TO RESPOND THE ADMINISTRATION'S POLITICAL ADVISERS NOW BELIEVE THAT IF THE PHARMACEUTICAL INDUSTRY CAN BE INTIMIDATED THEN POLITICALLY POWERFUL DOCTOR AND HOSPITAL GROUPS MAY BE LESS WILLING TO FIGHT THE SIGNIFICANT CHANGES IN HEALTH CARE THE ADMINISTRATION PLANS TO UNVEIL LATER THIS YEAR THE TRUTH IS THAT THE DRUG COMPANIES AND THEIR SHAREHOLDERS DID FEAST WELL IN THE 1980S PROFITS CLIMBED SHARPLY AVERAGING MORE THAN 15 ANNUAL GROWTH WHEN MUCH OF THE COUNTRY WAS IN RECESSION SOME OF THAT GAIN CAME FROM THE SALES OF NEW AND INNOVATIVE MEDICINES THAT MERITED PREMIUM PRICE TAGS BUT MUCH OF THE PROFIT WAS DUE TO A SHARP SUSTAINED RUNUP IN PRICES OF EXISTING PRODUCTS A RECENT CONGRESSIONAL STUDY FOUND THAT SOME COMPANIES BOOSTED PRICES OF OLD MEDICINES 100 TO 150 BETWEEN 1982 AND 1990 WORSE STILL SOME INDIVIDUAL COMPANIES IN THOSE YEARS BEHAVED INEXPLICABLY TURNING POTENTIAL PUBLIC RELATIONS TRIUMPHS INTO DISASTERS CONSIDER JUST TWO EXAMPLES BURROUGHS WELLCOME CO KICKED OFF A CONTROVERSY WHEN IT DECIDED IN 1987 TO CHARGE 10000 FOR A YEAR'S WORTH OF ITS DRUG AZT AT THE TIME THE ONLY DRUG AGAINST THE AIDS VIRUS WHEN ASKED TO JUSTIFY THE PRICE THE COMPANY INITIALLY SAID IT WAS TO COVER THE 80 MILLION IT SPENT TO DEVELOP THE DRUG THE TROUBLE WAS THAT AZT HAD BEEN DISCOVERED BY FEDERAL GOVERNMENT RESEARCHERS BURROUGHS WELLCOME WAS UNWILLING TO PROVIDE EVIDENCE FOR ITS EXPENDITURES AND NO WONDER THE 80 MILLION FIGURE IT CITED WAS THE SAME AMOUNT AN INDUSTRY STUDY SAID WAS THE AVERAGE COST TO DISCOVER AND DEVELOP A NEW DRUG INSTEAD OF BEING HAILED FOR QUICKLY TESTING THE DRUG THE COMPANY WAS CHARGED WITH BEING GREEDY AND THE REST OF THE INDUSTRY WAS TAINTED ALONG WITH IT AZT NOW COSTS ABOUT 2000 FOR A YEAR'S SUPPLY AND BURROUGHS WELLCOME NEVER WAS ABLE TO CONVINCE THE PUBLIC THAT IT HOPED TO USE AZT REVENUE TO FUEL RESEARCH INTO OTHER AIDS DRUGS ALSO IN 1987 THE INDUSTRY FAILED TO CAPITALIZE ON CONGRESS'S EFFORTS TO PROVIDE A DRUG INSURANCE BENEFIT FOR THE FIRST TIME TO ELDERLY PEOPLE COVERED BY MEDICARE THE DRUG MAKERS FIRST FOUGHT THE PLAN BECAUSE THEY FEARED THE FEDERAL GOVERNMENT WOULD RESTRICT PRICES IT PAID FOR DRUGS FOR THE ELDERLY THE INDUSTRY LATER RESCINDED ITS OPPOSITION BUT CONGRESS OVERTURNED THE LAW AFTER SENIORCITIZEN GROUPS IN PART AROUSED BY DRUG INDUSTRY LOBBYING RAILED AGAINST THE EXTRA PREMIUM CHARGED TO MEDICARE RECIPIENTS TO FUND THE BENEFIT THE FAILURE TO BACK DRUG INSURANCE FOR THE ELDERLY IS HAUNTING THE INDUSTRY TODAY DRUG COMPANY EXECUTIVES HAVE LONG BELIEVED THE INDUSTRY WAS INSULATED FROM CRITICISMS ABOUT EXPLODING MEDICAL COSTS HOW CAN ANYONE JUSTIFY CARPING AT COMPANIES THAT SPEND AS MUCH AS 1 BILLION A YEAR TO CURE DISEASE MOREOVER PRESCRIPTION DRUGS ACCOUNT FOR ONLY 7 OF TOTAL HEALTH CARE SPENDING THE COMPANIES ARGUED QUITE UNDERSTANDABLY THAT EVEN A LIFESAVING MEDICINE SUCH AS MERCK & CO'S HEART DRUG VASOTEC COSTS ONLY ABOUT 150 TO 2 FOR A DAY'S THERAPY A BARGAIN COMPARED WITH THE 30000 BILL FOR A HEART BYPASS IN FACT THE DRUG COMPANIES UNDERESTIMATED THE GROWING CRIES OF PAIN FROM ELDERLY PEOPLE WHO HAD TO REACH INTO THEIR OWN POCKETS TO PAY FOR PILLS SUCH AS VASOTEC THESE PEOPLE MANY OF WHOM TAKE SEVERAL HIGHPRICED DRUGS AT ONCE YOWLED TO CONGRESS ABOUT EACH INCREMENTAL INCREASE IN PRICE THE GREAT IRONY IS THAT IF THE ELDERLY HAD BEEN COVERED BY A MEDICARE DRUG BENEFIT THE DRUG MAKERS COULD HAVE GOTTEN AWAY A LOT LONGER WITH INCREASING PRICES TO THE PRIVATELY INSURED NOW AGREEING TO A MEDICARE DRUG BENEFIT MERELY LOOKS SELFSERVING AS A WAY TO GENERATE MORE REVENUE TODAY SAVVY EXECUTIVES UNDERSTAND THE MISTAKE TEN BIG DRUG COMPANIES WHOSE PRODUCTS ACCOUNT FOR 40 OF ALL US PRESCRIPTION MEDICINE SALES HAVE PLEDGED TO KEEP THEIR ANNUAL AGGREGATE DRUG PRICE INCREASES TO THE RATE OF INFLATION THE INDUSTRY'S LEADERSHIP HOWEVER IS STRUGGLING TO GET THE REST OF THE COMPANIES TO GO ALONG HOPING THE PLEDGE WILL FEND OFF MANDATORY PRICE CONTROLS THE INDUSTRY LEADERS HAVE ASKED THE JUSTICE DEPARTMENT TO WAIVE ANTITRUST LAWS THAT PROHIBIT PRICEFIXING SO THE COMPANIES CAN HASH OUT A VOLUNTARY PRICECONTROL PROPOSAL BUT CRITICS RIGHTLY POINT OUT THAT DESPITE THIS PROMISE RETAIL BUYERS OF A PRESCRIPTION MEDICINE WHO PAY FOR THEIR DRUGS THEMSELVES ARE STILL GETTING HIT WITH PRICE RISES CLIMBING WELL ABOVE INFLATION ESPECIALLY AMONG CERTAIN WIDELY USED MEDICINES DESPITE CLAIMING THAT AGGREGATE PRICE INCREASES IN 1992 TRACKED INFLATION MERCK'S WHOLESALE LIST PRICE FOR SEVERAL OF ITS DRUGS ROSE MORE THAN 6 LAST YEAR AND MANY COMPANIES HAVE YET TO CURB PRICE HIKES ELI LILLY & CO INCREASED THE DAILY WHOLESALE PRICE OF ITS ANTIBIOTIC CECLOR 138 TO 550 LAST YEAR AND BRISTOLMYERS SQUIBB INCREASED THE DAILY WHOLESALE PRICE OF ITS BLOOD PRESSURE DRUG CAPOTEN BY 111 AS LONG AS SOME POPULAR DRUGS EXPERIENCE SUCH PRICE JUMPS THE INDUSTRY'S IMAGE WON'T LIKELY IMPROVE INDEED THE DRUG MAKERS AT THIS POINT PROBABLY NEED TO TAKE SEVERAL STEPS TO TURN AROUND THEIR IMAGE THE COMPANIES MIGHT CONSIDER LETTING THE PUBLIC SEE THE MAGNITUDE OF THEIR DRUG DISCOVERY EFFORTS PERHAPS SPECIFICALLY DISCUSSING THEIR RESEARCH FAILURES SOMETHING THEY GENERALLY KEEP WELLGUARDED THEY MIGHT EVEN WANT TO CONSIDER A MAGNANIMOUS GESTURE SUCH AS ROLLING BACK CERTAIN RECENT PRICES RISES OR OFFERING DEEP DISCOUNTS TO SENIOR CITIZENS WHO LACK DRUG INSURANCE MR WALDHOLZ WHO COVERS MEDICINE AND SCIENCE IS A JOURNAL REPORTER IN NEW YORK 9303300077 930330 LETTERS TO THE EDITOR QUAINT CALL FOR CUTTING DEPOSIT INSURANCE IN REGARD TO WILLIAM M ISAAC'S MARCH 4 EDITORIALPAGE ARTICLE ADVOCATING DEPOSIT INSURANCE CUTBACKS LIMITING DAMAGE OF DEPOSIT INSURANCE WE FIND IT QUAINT THAT MR ISAAC WHOSE PLACE IN HISTORY IS ENSURED BY ORCHESTRATING THE BAILOUT OF ALL DEPOSITORS AND CREDITORS OF THE CONTINENTAL ILLINOIS BANK & HOLDING CO NOW RETURNS TO THE SCENE ADVOCATING THAT PRESENTDAY REGULATORS NOT HAVE SUCH A FREEDOM THIS IS HIGHLY IRRESPONSIBLE THE POLICIES MR ISAAC PIONEERED WITH CONTINENTAL ILLINOIS IN 1984 WERE CODIFIED INTO LAW IN 1991 THE WARNINGS OF FED CHAIRMAN ALAN GREENSPAN TREASURY SECRETARY NICHOLAS BRADY AND FDIC CHAIRMAN WILLIAM SEIDMAN PERSUADED CONGRESS TO KEEP CONTINGENCY AUTHORITY IN PLACE IN CASE OF A FUTURE CONTINENTAL ILLINOIS CONSEQUENTLY MR ISAAC'S RECOMMENDATIONS FOR DEPOSIT INSURANCE CUTBACKS WOULD FALL ON THE BACKS OF THE NATION'S COMMUNITY BANKS AND WOULD DRIVE THEIR CORE DEPOSITS TO THE LARGER BANKS TO THE DETRIMENT OF SMALLBUSINESS LENDING 9303300076 930330 DIVIDEND NEWS UNITED POSTAL BANCORP APPROVES STOCK SPLIT INCREASES ITS DIVIDEND ST LOUIS UNITED POSTAL BANCORP INC SAID IT HAS APPROVED A 2FOR1 STOCK SPLIT AN INCREASE IN ITS QUARTERLY DIVIDEND AND HAS RECEIVED REGULATORY APPROVAL TO REPURCHASE 5 OF ITS COMMON STOCK THE STOCK SPLIT WILL BE IN THE FORM OF A 100 COMMON STOCK DIVIDEND PAYABLE APRIL 26 TO SHAREHOLDERS OF RECORD APRIL 12 THE BANK HOLDING COMPANY WILL DOUBLE ITS CURRENT REGULAR QUARTERLY DIVIDEND THE INCREASE WILL BE EFFECTED BY MAINTAINING THE SAME PRESPLIT DIVIDEND RATE OF 125 CENTS A SHARE ON THE COMMON STOCK AFTER THE SPLIT THE NEW DIVIDEND HAS THE SAME PAY AND RECORD DATES AS THE STOCK SPLIT IN ADDITION THE COMPANY SAID IT INTENDS TO REPURCHASE 5 OF ITS SHARES PRIOR TO JULY 14 SO FAR THE COMPANY HASN'T REPURCHASED ANY OF ITS SHARES UNITED POSTAL PRESIDENT MICHAEL J GORMAN SAID THE COMPANY TOOK THE ACTIONS BECAUSE OF OUR STRONG CAPITAL POSITION GOOD ASSET QUALITY AND THE ANTICIPATION OF CONTINUED EARNINGS MOMENTUM OVER THE BALANCE OF 1993 9303300075 930330 MONDAY'S MARKETS STOCK RALLY LOSES STEAM IN AFTERNOON BOND PRICES ADVANCE AS DOLLAR IS MIXED INDUSTRIALS RISE 1512 BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A STOCKMARKET RALLY FADED IN THE AFTERNOON BUT BOND PRICES POWERED HIGHER THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1512 POINTS TO 345510 STANDARD & POOR'S 500STOCK INDEX ROSE 299 TO 45077 BUT THE NASDAQ COMPOSITE INDEX EDGED DOWN 078 TO 68076 BOTH THE STOCK AND BOND MARKETS OPENED ON A STRONG NOTE AFTER RUSSIAN PRESIDENT YELTSIN SURVIVED AN IMPEACHMENT VOTE DURING THE WEEKEND BOND PRICES PUSHED HIGHER LATE IN THE AFTERNOON BUT STOCKS SLID FROM THEIR HIGHS SOME MUTED ECONOMIC NEWS PROVIDED SUPPORT FOR BONDS THE COMMERCE DEPARTMENT SAID SALES OF NEW SINGLEFAMILY HOMES ROSE 46 IN FEBRUARY SLIGHTLY BELOW ANALYSTS' EXPECTATIONS THE COMMERCE DEPARTMENT ALSO REPORTED THAT PERSONAL INCOME ROSE A LOWERTHANEXPECTED 02 IN FEBRUARY BUT THAT PERSONALCONSUMPTION SPENDING GREW 06 SOMEWHAT STRONGER THAN FORECAST THERE'S POTENTIAL FOR ANOTHER BONDMARKET ADVANCE SAID ALAN R ACKERMAN MARKET STRATEGIST AT REICH & CO AS WE SEE A SENSE OF A BONDMARKET IMPROVEMENT WE'RE LIKELY TO SEE STOCKS IMPROVE TOO ANALYSTS SAID STOCK PRICES WERE BUFFETED BY SEVERAL ROUNDS OF PROGRAM TRADING MR ACKERMAN SAID INVESTORS WERE ENCOURAGED THAT THE RECENT TIDE OF DISAPPOINTING EARNINGS ANNOUNCEMENTS SEEMS TO BE EBBING CLEARING THE WAY FOR WHAT SOME ANALYSTS EXPECT WILL BE ROBUST OVERALL GAINS IN CORPORATE PROFITS WE MAY BE WADING INTO A SERIES OF GOOD EARNINGS REPORTS FROM HERE ON HE SAID A SHARP JUMP IN THE TOKYO STOCK MARKET ADDED TO INVESTORS' ENTHUSIASM THE NIKKEI AVERAGE GAINED 14 TO CLOSE ABOVE THE 19000 LEVEL WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 078 TO 10054 PEOPLE ARE BEGINNING TO BELIEVE THE JAPANESE MARKET HAS TURNED THE CORNER SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY PSYCHOLOGICALLY IT'S A LITTLE HELPFUL MR JOHNSON SAID SOME INVESTORS MAY BE BUYING IN ANTICIPATION OF ANOTHER FLOOD OF CASH INTO THE STOCK MARKET IN APRIL AS 110 BILLION IN CERTIFICATES OF DEPOSIT MATURE ONLY A SMALL PERCENTAGE OF THAT AMOUNT WILL FIND ITS WAY INTO STOCKS BUT IT MAY STILL BE ENOUGH TO DRIVE PRICES HIGHER HE SAID IF ONLY A SMALL FRACTION OF THE MATURING CDS FINDS ITS WAY INTO MUTUAL FUNDS OR DIRECTLY INTO THE STOCK MARKET IT COULD HAVE A VERY POSITIVE IMPACT MR JOHNSON SAID PEOPLE ARE THINKING ABOUT THAT AND IT'S LIFTING SPIRITS THE DOW JONES TRANPORTATION AVERAGE GAINED 2296 TO 157430 ON SHARP GAINS AMONG AIRLINE STOCKS SPARKED BY DELTA AIR LINES' PLANS TO REDUCE CAPACITY AND LAY OFF PILOTS DELTA JUMPED 2 7/8 OR 55 TO 54 3/4 UAL ROSE 2 5/8 OR 21 TO 124 7/8 AND USAIR CLIMBED 1 1/8 OR 6 TO 19 7/8 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 1999 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1081 ISSUES ROSE AND 808 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 5/8 POINT OR OVER 625 FOR EACH 1000 FACE AMOUNT TO YIELD 689 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16263 MARKS AND 11685 YEN COMPARED WITH 16335 MARKS AND 11650 YEN FRIDAY 9303300074 930330 SACRAMENTO CALIF SITE AND 3 OTHERS ADDED TO BASE CLOSING LIST WASHINGTON THE GOVERNMENT'S INDEPENDENT BASECLOSING COMMISSION DECIDED TO CONSIDER FOR POSSIBLE CLOSURE A LARGE AIR FORCE BASE NEAR SACRAMENTO CALIF AND THREE OTHER INSTALLATIONS THE MOVE HAD BEEN EXPECTED THE AIR FORCE HAD RECOMMENDED THAT MCCLELLAN AIR FORCE BASE BE CLOSED BUT AFTER AN OUTCRY FROM THE CALIFORNIA CONGRESSIONAL DELEGATION DEFENSE SECRETARY LES ASPIN EARLIER THIS MONTH REMOVED IT FROM HIS LIST OF RECOMMENDATIONS TO THE COMMISSION SIMILARLY THE COMMISSION DECIDED TO PUT BACK ON THE LIST THE ARMY'S MONTEREY PRESIDIO IN CALIFORNIA WHICH MR ASPIN ALSO HAD DELETED IN ADDITION THE COMMISSION VOTED TO CONSIDER CLOSING THE GREAT LAKES NAVAL TRAINING CENTER WHICH IS NEAR CHICAGO THE NAVY HAD RECOMMENDED THAT IT CLOSE ITS TWO OTHER MAJOR TRAINING CENTERS IN ORLANDO FLA AND SAN DIEGO THE COMMISSION'S ACTION YESTERDAY DOESN'T MEAN THE GREAT LAKES CENTER WILL BE CLOSED ONLY THAT THE PANEL WANTED TO CONSIDER ALL THREE CENTERS FINALLY THE COMMISSION VOTED TO ADD THE NAVAL AIR STATION IN GUAM THE NAVY HAD NOT LISTED THE STATION BUT OFFICIALS IN GUAM WANT IT CLOSED 9303300073 930330 CITIBANK LAUNCHES LOWINTEREST OFFERS FOR CARDHOLDERS BY PETER PAE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITICORP'S CITIBANK LAUNCHED LOWINTEREST CREDIT CARD OFFERS TO ATTRACT NEW CUSTOMERS IN ANOTHER EFFORT TO STEM THE EROSION OF ITS MARKET SHARE THE NATION'S LARGEST CREDITCARD ISSUER ANNOUNCED IT IS LOWERING THE ANNUAL INTEREST RATE ON ITS CARDS TO 154 FROM 198 FOR NEW CARDHOLDERS THAT NEW RATE WILL PARALLEL REDUCED RATES OFFERED LAST YEAR TO MOST OF ITS EXISTING CUSTOMERS IN ADDITION CITIBANK SAID IT WILL OFFER A SPECIAL 99 INTEREST RATE TO THOSE NEW CUSTOMERS WHO TRANSFER BALANCES OUTSTANDING ON OTHER CREDIT CARDS TO CITIBANK'S CARD WITH THE GENERAL DECLINE IN INTEREST RATES COUPLED WITH AN INCREASE IN COMPETITION FOR RATECONSCIOUS CONSUMERS THE AVERAGE RATE ON CREDIT CARDS HAS DECLINED TO ABOUT 17 FROM ABOUT 19 IN 1991 HOWEVER CITIBANK REMAINS ONE OF THE LAST BIG ISSUERS TO IMPOSE 198 RATES CITIBANK'S TOTAL CARD ACCOUNTS IN 1992 FELL 12 BECAUSE OF BOTH INCREASED COMPETITION AND THE BANK'S DECISION TO MORE AGGRESSIVELY CANCEL PROBLEM ACCOUNTS INDUSTRY ANALYSTS SAID CITIBANK HAD NO CHOICE BUT TO LOWER THE INTEREST RATE ON ITS CREDIT CARD FOR NEW AND EXISTING CUSTOMERS THEY HAD TO DO SOMETHING TO RETAIN MARKET SHARE SAID DAVID ROBERTSON OF THE NILSON REPORT A SANTA MONICA CALIF NEWSLETTER FOR THE INDUSTRY LOCAL ISSUERS WERE DOING WHAT THEY NEEDED SUCH AS LOWER INTEREST RATES TO ATTRACT CUSTOMERS AND CITIBANK LOOKED LIKE THE ODD MAN OUT THIS MOVE WILL CERTAINLY HELP CITIBANK'S 99 BALANCETRANSFER OFFER MIRRORS OTHER SUCH PROGRAMS WHICH HAVE BECOME AN INCREASINGLY POPULAR WAY FOR ISSUERS TO STEAL CUSTOMERS FROM EACH OTHER IN FACT SUCH OFFERS HAVE BEEN USED BY RIVALS TO ERODE CITIBANK'S MARKET SHARE BUT WHILE THE BALANCETRANSFER OFFER OF 99 WHICH BEGINS APRIL 5 APPEARS TO BE ONE OF THE BEST IN THE INDUSTRY THERE IS A CATCH THE RATE RISES TO 154 AFTER SIX MONTHS THAT INCREASE APPLIES TO BOTH EXISTING BALANCES OUTSTANDING AND TO NEW CHARGES THUS A CUSTOMER WHO WISHES TO TAKE ADVANTAGE OF THE INITIAL LOW RATE MUST PAY DOWN THE BALANCE OUTSTANDING BY SEPT 30 ALSO THOSE WHO TRANSFER THEIR BALANCES TO CITIBANK'S AFFINITY CARDS SUCH AS ADVANTAGE OR FORD WON'T GET POINTS ON THE AMOUNT OF THE BALANCE TRANSFERRED USUALLY THE CARDHOLDER EARNS POINTS EACH TIME A PURCHASE IS MADE ON THOSE AFFINITY CARDS WHICH CAN BE USED TO EARN FREQUENT FLIER MILES ON AMR CORP'S AMERICAN AIRLINES OR FOR REBATES ON NEW FORD MOTOR CO CARS CITIBANK FIRST BEGAN SLASHING RATES A YEAR AGO FOR CUSTOMERS WHO PAID THEIR BILLS ON TIME AND REMAINED WITHIN THEIR CREDIT LIMITS THE BANK SAID THAT AS A RESULT ABOUT 70 OF ITS EXISTING CARDHOLDERS NOW PAY 154 FOR CLASSIC OR 134 FOR PREFERRED CREDIT CARDS THE REMAINING CUSTOMERS WHO AREN'T AS PROMPT ABOUT PAYING THEIR CARD BILLS OR HAVE YET TO QUALIFY FOR THE PERFORMANCEBASED RATES WILL CONTINUE TO PAY 198 INTEREST CITIBANK SAID 9303300072 930330 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/8 HIGH 3 LOW 2 7/8 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP310 30 TO 119 DAYS 312 120 TO 149 DAYS 315 150 TO 239 DAYS 320 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 319 30 DAYS 319 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 264 ONE MONTH 267 TWO MONTHS 270 THREE MONTHS 282 SIX MONTHS 3 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 312 ONE MONTH 316 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 306 60 DAYS 306 90 DAYS 309 120 DAYS 312 150 DAYS 313 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 3/8 SIX MONTHS 3 11/16 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 739 60 DAYS 749 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 737 60 DAYS 747 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 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 9303300071 930330 MARKETING & MEDIA ADVERTISING FINAL FOUR ADS AIM TO SEE NOTHING BUT NET PROFIT THAT IS BY KEVIN GOLDMAN AND THEN THERE WERE FOUR FINALLY ALTHOUGH IT SEEMS IT TOOK LESS TIME TO ANSWER THE QUESTION WHO KILLED LAURA PALMER THE 64 TEAMS COMPETING IN THE COLLEGE BASKETBALL CHAMPIONSHIPS HAVE DWINDLED DOWN TO A MERE FOUR NO MATTER THAT THE COMPETITION BEGAN WHEN THERE WAS SNOW ON THE GROUND AND TEMPERATURES WERE BELOW FREEZING AND THAT IT WON'T END UNTIL NEXT MONDAY AFTER A SPRING THAW AND THE CLOCKS HAVE JUMPED AHEAD TO DAYLIGHT SAVINGS TIME THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION'S BASKETBALL TOURNAMENT HAS ADVERTISERS JUMPING THROUGH HOOPS TO BECOME SPONSORS THIS YEAR CBS IS CHARGING ADVERTISERS 300000 FOR A 30SECOND SPOT ON THE FINAL FOUR ROUND ON SATURDAY THAT REPRESENTS A ROBUST 11 INCREASE FROM LAST YEAR'S CONTESTS WHEN THE NETWORK CHARGED 271400 AND THIS YEAR'S AD RATE IS A HEALTHY 33 MORE THAN THE FINALS OF THE PROFESSIONAL NATIONAL BASKETBALL ASSOCIATION WERE ABLE TO GET FROM SPONSORS ON GENERAL ELECTRIC'S NBC THE EARLIER GAMES IN THE ROAD TO THE FINAL FOUR AS THE DRIBBLEATHON IS DUBBED ALSO RECEIVED INCREASES OF 9 OVER LAST YEAR AVERAGING 120000 FOR A HALFMINUTE COMMERCIAL THAT KIND OF APPRECIATION IN AN OTHERWISE GLUTTED MARKET FOR SPORTS ADVERTISING MAY SEEM SURPRISING BUT FOR ADVERTISERS THE POPULARITY OF THE NCAA TOURNEY ISN'T ALL THAT MYSTERIOUS THE GAMES ATTRACT A LARGE UPSCALE AUDIENCE SAY MEDIA BUYERS AND AD AGENCY EXECUTIVES WITH 64 TEAMS SHOOTING FOR A SLOT IN THE FINAL FOUR THE ODDS ARE AN INDIVIDUAL WILL TUNE IN TO SOME IF NOT ALL OF THE GAMES SINCE THE TEAMS REPRESENT VIRTUALLY EVERY REGION IN THE COUNTRY FURTHERMORE THE NCAA UNLIKE MANY OTHER PROGRAMS ON BROADCAST NETWORK TELEVISION CONTINUES TO DRAW A GROWING AUDIENCE SINCE 1987 THE HOUSEHOLD RATINGS FOR THE FINAL FOUR HAVE INCREASED STEADILY EACH YEAR AND HAD GROWN A TOTAL 20 OVERALL BY LAST YEAR THE NCAA OFFERS UP ONE OF ONLY A FEW PREMIER SPORTS EVENTS THAT MEDIA BUYERS VIEW AS ESSENTIALLY ZAPPROOF VIEWERS WON'T HIT THE REMOTE CONTROL EVERY TIME THE SCREEN GOES BLACK AND A COMMERCIAL APPEARS SUCH HIGHPRICED EVENTS ARE FEW AND FAR BETWEEN LAST NIGHT'S TELECAST OF THE ACADEMY AWARDS ON CAPITAL CITIES/ABC'S NETWORK IS ANOTHER EXAMPLE RIVAL NETWORKS USUALLY PROGRAM REPEATS OF REGULAR SERIES OR LOSER SHOWS AGAINST SUCH STRONG COMPETITION THE AVERAGE VIEWER IS SO RIVETED AND INVOLVED IN SUCH PROGRAMS THAT THEY PAY ATTENTION NOT ONLY TO THE EVENT BUT TO THE COMMERCIALS IN IT AS WELL SAYS A HOPEFUL STEVE AUERBACH EXECUTIVE VICE PRESIDENT OF NATIONAL BROADCAST AT DEWITT MEDIA A MEDIA BUYING COMPANY NCAA VIEWERS TEND TO CROSS DEMOGRAPHIC LINES AS WELL SAYS BILL KOENIGSBERG CHIEF EXECUTIVE AND PRESIDENT OF HORIZON MEDIA A BUYING SERVICE THE AUDIENCE IS EVERYONE FROM THE STUDENTS ATTENDING THE COLLEGE HE SAYS TO THE MIDDLEAGED AND OLDER INDIVIDUALS WHO WATCH BECAUSE A TEAM IS REPRESENTING THEIR ALMA MATER SUCH FACTORS HELPED CBS IN SELLING LONGTERM SPONSORSHIPS TO SUCH ADVERTISERS AS GENERAL MOTORS WHICH PAID 400 MILLION TO BE THE ONLY DOMESTIC AUTO MAKER ON THE HOOP FEST AMERICAN TELEPHONE & TELEGRAPH NIKE AND PEPSICO'S FLAGSHIP SOFT DRINK AND ITS PIZZA HUT CHAIN IT'S A PREMIER SERIES THAT IS PRESENTED TO THE VIEWER WITH NO CHARGE AND WE LIKE TO BE ASSOCIATED WITH SUCH PROGRAMMING SAYS A PIZZA HUT SPOKESMAN BACK IN 1989 WHEN CBS PAID A SURPRISING 1 BILLION FOR A SEVENYEAR PACT WITH NCAA THAT RUNS THROUGH MARCH 1997 SOME IN THE BROADCAST BUSINESS WONDERED WHETHER SOMEBODY IN CBS SPORTS WENT A LITTLE CRAZY HOW WOULD THE NETWORK BE ABLE TO INCREASE AD RATES IN PROPORTION TO THE SIZABLE INCREASES IN FEES IT WOULD PAY FOR EACH YEAR OF THE PACT JOSEPH ABRUZZESE SENIOR VICE PRESIDENT OF CBS NETWORK SALES DECLINES TO GIVE SPECIFICS BUT ASSURES THE INCREASES IN THE SPONSORS' CONTRACTS REPRESENT THE INCREASES IN OURS FOR CBS THE ACCOMPLISHMENT WITH NCAA IS SWEET SUCCESS CONSIDERING IT TOOK MORE THAN 600 MILLION IN WRITEDOWNS ON OTHER HIGHPRICED SPORTING EVENTS INCLUDING A MAJOR FOUL ON THE MAJOR LEAGUE BASEBALL CONTRACT AND THE HIT ON ITS PACT WITH THE NATIONAL FOOTBALL LEAGUE CBS MANAGED TO INCREASE VIEWERSHIP BY TRANSFORMING THE EVENT INTO MORE THAN JUST ANOTHER SWEATY SPORT IN PART WITH A SASSY MARKETING BLITZ PROMOTING THE NCAA DURING ITS NO 1 RATED PRIMETIME SCHEDULE WITH THE THEME MARCH MADNESS IT PUMPED UP VIEWER INTEREST BY PROFILING LIKELY CONTENDERS TO THE FINAL FOUR AND ASSEMBLED A SMOOTH ANNOUNCING AND ANALYST TEAM INCLUDING JIM NANTZ AND BILLY PACKER THE RESULTING RATINGS FOR THE FIRST AND SECOND ROUNDS ARE UP 9 FROM LAST YEAR ACCORDING TO AC NIELSEN FIGURES CBS ALSO GAVE TICKETS TO HEAVYDOSE ADVERTISERS FOR THE FINAL FOUR AND THE CHAMPIONSHIP GAMES ALL TO BE PLAYED IN NEW ORLEANS THE BIG GAME ONE OF THE HARDEST TICKETS TO COME ACROSS IS SCHEDULED TO BE PLAYED MONDAY THERE ARE OF COURSE PARTIES IN THE BIG EASY THE MOTHER OF ALL PARTY CITIES SUCH ADVERTISERS INCLUDE UNITED PARCEL SERVICE OF AMERICA GILLETTE MAZDA MOTOR OF AMERICA AND ANHEUSERBUSCH CBS IS ENTIRELY SOLD OUT FOR THE FINAL FOUR AS OPPOSED TO PREVIOUS YEARS WHEN WE WENT INTO SOME GAMES WITH AVAILABLE SPOTS SAYS MR ABRUZZESE IT FURTHER LUCKED OUT IN THAT ALL FOUR FINALISTS ARE FROM HEAVY BASKETBALL CITIES KENTUCKY MICHIGAN NORTH CAROLINA AND KANSAS ALL ARE ENTIRELY BANKABLE CONTENDERS AND NOT ONE STANDS AS A FLASHINTHEPAN CINDERELLA HOPEFUL AETNA HEALTH PLANS THE MANAGED CARE UNIT OF AETNA LIFE & CASUALTY HARTFORD CONN IS BEGINNING AN AGENCY REVIEW FOR ITS ESTIMATED 15 MILLION ACCOUNT UNAFFECTED BY THE REVIEW IS AETNA'S ACCOUNT AT AMMIRATI & PURIS NEW YORK ALTHOUGH AMMIRATI IS WELCOME TO COMPETE ACCORDING TO MAL CRAWFORD EXECUTIVE VICE PRESIDENT AT ERNSTVAN PRAAG THE NEW YORK CONSULTANCY RUNNING THE REVIEW THE INCUMBENT THE RICHARDS GROUP DALLAS IS INVITED TO PARTICIPATE HE SAID A DECISION IS EXPECTED BY THE END OF JUNE SAATCHI & SAATCHI CO'S CME KHBB MINNEAPOLIS HAS WON THE CREATIVE SHOOTOUT FOR THE ESTIMATED 10 MILLION CANADIAN CLUB WHISKEY BRAND FROM HIRAM WALKER & SONS LTD THE ACCOUNT PREVIOUSLY WAS HANDLED BY EJL ADVERTISING CHICAGO THE NEW ASSIGNMENT WILL COVER NORTH AMERICAN AND INTERNATIONAL CAMPAIGNS SAID PETER FINCH VICE PRESIDENT OF MARKETING FOR HIRAM WALKER THE WALKERVILLE ONTARIO UNIT OF ALLIEDLYONS PLC IN THE US CANADIAN CLUB MEDIA DUTIES REMAIN AT EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER NEW YORK MESSNER WAS THE OTHER CONTENDER FOR THE CREATIVE PORTION OF THE ACCOUNT 9303300070 930330 INTERNATIONAL BEIJING GIVES MORE PROMINENT ROLE TO QIAO AS CABINET SEATS ARE RESHUFFLED BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING WILL QIAO SHI THE SHADOW MAN OF CHINESE POLITICS FINALLY START LEAVING HIS FINGERPRINTS ON STATE POLICY THIS COULD BE THE MOST INTERESTING PRODUCT OF THE CURRENT NATIONAL PEOPLE'S CONGRESS SESSION WHICH OTHERWISE HAS RATIFIED AN UNREMARKABLE RESHUFFLING OF CABINET SEATS AND A ROUTINE REAFFIRMATION OF THE GOVERNMENT'S TOP LEADERS THE LEGISLATURE WHICH ENDS ITS TWOWEEK SESSION WEDNESDAY ADDED A BIT OF BOUNCE TO ITS USUAL RUBBERSTAMP BEHAVIOR ON SUNDAY WHEN 11 OF THE 2903 DELEGATES IN ATTENDANCE EITHER VOTED NO OR ABSTAINED WHEN TOLD TO APPROVE A NEW FIVEYEAR TERM AS PREMIER FOR LI PENG EXCEPT FOR THAT THE SESSION PROCEEDED AS SCRIPTED JIANG ZEMIN 67 YEARS OLD GOT THE ADDITIONAL TITLE OF STATE PRESIDENT TO ADD TO HIS OTHER POSTS AS COMMUNIST PARTY SECRETARYGENERAL AND CENTRAL MILITARY COMMISSION CHAIRMAN CHINA INTERNATIONAL TRUST & INVESTMENT CO CHAIRMAN RONG YIREN 77 WAS GIVEN THE CEREMONIAL POST OF VICE PRESIDENT THE APPOINTMENT OF THE 68YEAROLD MR QIAO AS CHAIRMAN OF THE NATIONAL PEOPLE'S CONGRESS COULD TURN OUT TO BE SIGNIFICANT IT SERVES TO TIE THE LEGISLATURE DIRECTLY INTO THE PARTY'S SEVENMEMBER STANDING COMMITTEE OF THE POLITBURO OF WHICH MR QIAO IS A MEMBER BUT IT ALSO PUTS THE LAWMAKING BODY INTO THE HANDS OF A MAN WHO IN THE PAST FIVE YEARS HAS CONTROLLED CHINA'S ENTIRE INTERNAL SECURITY APPARATUS FROM ARMED POLICE TO COURTS TO PRISONS TO THE JOB OF FERRETING OUT CORRUPTION WITHIN THE PARTY WITH THESE POSTS MR QIAO ALWAYS TIGHTLIPPED AND RECLUSIVE BECAME AN EVEN MORE SECRETIVE FIGURE WHO ALMOST NEVER MET WITH FOREIGNERS AND RARELY APPEARED AT PUBLIC FORUMS IN SPEECHES THAT WERE MADE PUBLIC HOWEVER MR QIAO OFTEN RAILED AGAINST CORRUPT CADRES OR PROMOTED THE IDEA OF BUILDING A STRONG LEGAL SYSTEM THE CHAIRMAN'S SLOT AND OTHER NPC SENIOR POSTS HAVE TRADITIONALLY BEEN RESERVED AS SEMIRETIREMENT JOBS BUT PEOPLE WHO KNOW MR QIAO SAY HE IS FAR FROM CONTEMPLATING RETIREMENT IN 1986 WHEN MR QIAO WAS NAMED VICE PREMIER MANY ASSUMED HE WAS DESTINED TO BE EITHER PARTY CHIEF OR PREMIER HE IS VERY AMBITIOUS AND I CAN GUARANTEE YOU THAT HE IS NOT GOING TO THE NATIONAL PEOPLE'S CONGRESS TO RETIRE SAID A GOVERNMENT OFFICIAL WHO MET REGULARLY WITH MR QIAO IN THE MID1980S SOME ANALYSTS BELIEVE THAT MR QIAO IS UNDER INSTRUCTIONS FROM DENG XIAOPING TO STRENGTHEN THE LEGISLATURE'S LAWMAKING ABILITY IT APPEARS THAT MR QIAO REMAINS A TRUSTED ALLY OF MR DENG EVEN THOUGH HE IS REPORTED TO HAVE ABSTAINED DURING A MAY 1989 VOTE OF THE PARTY STANDING COMMITTEE ON IMPOSING MARTIAL LAW IN BEIJING LAST YEAR MR QIAO APPARENTLY CAME TO MR DENG'S AID AT A KEY TIME WHEN MR DENG WAS HAVING TROUBLE GETTING PARTY LEADERS AND THE PARTY'S CONSERVATIVE PROPAGANDA APPARATUS TO ECHO HIS MESSAGE OF ACCELERATING ECONOMIC REFORM MR QIAO HELPED BREAK THE STALEMATE MR QIAO WHO ALSO HEADS THE CENTRAL PARTY SCHOOL ARRANGED FOR THENVICE PREMIER TIAN JIYUN TO GIVE A SPEECH AT THE SCHOOL DENOUNCING LEFTISTS THE SPEECH GOT WIDE ATTENTION BECAUSE MR TIAN JOKINGLY SUGGESTED FORMING SPECIAL LEFTIST ECONOMIC ZONES WHERE THEY COULD WAIT IN LINE FOR PALTRY SUPPLIES OF FOOD AND CONSUMER GOODS MR TIAN IS EXPECTED TO BE APPOINTED AS SECOND TO MR QIAO IN THE LEGISLATURE'S HIERARCHY ANALYSTS SAY THAT MR QIAO MAY SEEK TO STRENGTHEN THE CONGRESS'S LAWMAKING ABILITY BY RECRUITING ATTORNEYS WITH LEGAL EXPERIENCE OUTSIDE CHINA TO STAFF THE LEGISLATIVE AFFAIRS COMMISSION CHINA IS NOW WORKING ON STATUTES TO REGULATE ITS STOCK MARKETS INDUSTRIAL RESTRUCTURING AND MANY OTHER ASPECTS OF ECONOMIC REFORM BUT THE LEGAL DIVISIONS OF THE STATE COUNCIL AND INDIVIDUAL MINISTRIES LACK THE EXPERTISE TO HANDLE SUCH COMPLICATED MATTERS WHETHER MR QIAO WILL TRY TO STRENGTHEN THE LEGISLATURE AS A FORUM FOR SUGGESTING AND DISCUSSING GOVERNMENT POLICY IS MUCH LESS CERTAIN DESPITE MR QIAO'S REPORTED RELUCTANCE TO IMPOSE MARTIAL LAW IN BEIJING HE SUPERVISED THE REPRESSIVE CRACKDOWN THAT FOLLOWED THE JUNE 1989 TIANANMEN MASSACRE BUT SOME BELIEVE THAT MR QIAO MAY BE MORE OPENMINDED THAN HIS PAST POSTS WOULD MAKE IT APPEAR PEOPLE WHO HAVE MET MR QIAO'S CHILDREN AT LEAST TWO OF WHOM STUDY OVERSEAS SAY THEY ARGUE THAT MR QIAO IS MUCH MORE PROGRESSIVE THAN HIS IMAGE SUGGESTS ANALYSTS WILL ALSO BE WATCHING LI RUIHUAN 64 FORMER CHIEF OF PARTY IDEOLOGY AND MAYOR OF TIANJIN WHO WAS NAMED CHAIRMAN OF THE CHINESE PEOPLE'S POLITICAL CONSULTATIVE CONFERENCE THIS IS AN ADVISORY BODY OF PROMINENT PEOPLE INCLUDING SCIENTISTS AND SCHOLARS WHO COULD MAKE SIGNIFICANT CONTRIBUTIONS TO POLICY MAKING PERHAPS THE MOST IMPORTANT RESHUFFLING OF STATE COUNCIL ORGANIZATIONS AND MINISTERS CAME IN THE ECONOMIC REALM LI LANQING THE FORMER MINISTER OF FOREIGN ECONOMIC RELATIONS AND TRADE HAS BEEN NAMED AS ONE OF FOUR VICE PREMIERS HIS SUCCESSOR IS WU YI WHO WAS VICE MINISTER AND A KEY NEGOTIATOR IN USCHINA TRADE TALKS MS WU 54 WILL TAKE OVER A REORGANIZED MINISTRY NOW DUBBED THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION A NEW MINISTRY OF INTERNAL TRADE HAS BEEN CREATED AND A FORMER VICE MINISTER OF LIGHT INDUSTRY ZHANG HAORU 60 APPOINTED AS ITS CHIEF 9303300069 930330 UN RETAINS EXPORT BAN ON IRAQI OIL AMID REPORTS OF SALES DESPITE SANCTIONS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE UNITED NATIONS SECURITY COUNCIL RETAINED A BAN AGAINST IRAQI OIL EXPORTS AMID NEW REPORTS THAT IRAQ IS SELLING OIL ACROSS ITS BORDERS DESPITE THE SANCTIONS THE SECURITY COUNCIL MET YESTERDAY FOR A ROUTINE 60DAY REVIEW OF THE EMBARGO THAT WAS IMPOSED AGAINST IRAQ AFTER SADDAM HUSSEIN'S TROOPS INVADED KUWAIT IN AUGUST 1990 AS EXPECTED THE DECISION TO CONTINUE THE SANCTIONS CAME AFTER THE BRITISH FRENCH AND US AMBASSADORS TO THE UN GAVE DETAILS ON AREAS IN WHICH IRAQ ALLEGEDLY FAILED TO COMPLY WITH SECURITY COUNCIL RESOLUTIONS THE US IN PARTICULAR HAS PLACED A HIGH PRIORITY ON ENFORCING THE EMBARGO AGAINST IRAQ SEEING IT AS A WAY OF FORCING SADDAM HUSSEIN INTO COMPLYING WITH UN PROHIBITIONS ON WEAPONS DEVELOPMENT RECENTLY HOWEVER EVIDENCE HAS MOUNTED THAT SMALL VOLUMES OF IRAQI OIL ARE MOVING INTO THE WORLD OIL MARKET DESPITE THE UN BAN AGAINST SUCH EXPORTS IN RECENT DAYS IRAN A FORMER WAR FOE OF IRAQ HAS BEEN PROMINENTLY MENTIONED IN THE OIL INDUSTRY AS A RECIPIENT OF IRAQI CRUDE OIL AND YESTERDAY AFTER A WASHINGTON POST REPORT THAT IRAN HAD RECEIVED A LARGE SHIPMENT OF IRAQI OIL THE US STATE DEPARTMENT CONFIRMED THAT IT HAS RAISED THE ISSUE WITH IRAN THROUGH DIPLOMATIC CHANNELS MEANWHILE THE MIDDLE EAST ECONOMIC SURVEY REPORTED THAT IRAQ IS EXPORTING INCREASING AMOUNTS OF PETROLEUM PRODUCTS AS WELL AS FERTILIZERS AND CEMENT TO TURKEY AS WELL AS IRAN THE AUTHORITATIVE WEEKLY PUBLICATION SAID REPORTS FROM BAGHDAD INDICATED THAT IRAQ WAS TRUCKING THE GOODS ACROSS ITS BORDERS IN RETURN FOR FOOD MEDICINES AND SPARE PARTS CRUDEOIL PRICES FELL YESTERDAY IN US FUTURES TRADING LIGHT LOWSULFUR CRUDE FOR MAY DELIVERY SETTLED 12 CENTS A BARREL LOWER AT 2029 BUT TRADERS CITED TECHNICAL REASONS FOR THE DECLINE AND OIL ANALYSTS SAID NEWS OF IRAQ'S OIL EXPORTS WILL HAVE ONLY LIMITED IMPACT ON THE OIL MARKET THESE REPORTS AREN'T LIKELY TO BE VIEWED AS A PRECURSOR OF MORE AND MORE VOLUMES OF IRAQI OIL FLOWING INTO THE MARKET SAID WILLIAM H BROWN III WHO HEADS THE WH BROWN PETROLEUMEQUITY AND COMMODITYRESEARCH FIRM IN NEW YORK INDEED FEW SEE IRAQI OIL AS A SIGNIFICANT FACTOR UNTIL THE UN LIFTS THE SANCTIONS WHICH COULD BE MONTHS AND POSSIBLY EVEN YEARS AWAY UNLESS THE SITUATION IN RUSSIA EXPLODES WE WON'T SEE IRAQ IN THE OIL MARKET FOR AT LEAST THE REMAINDER OF THIS YEAR SAID LAWRENCE GOLDSTEIN PRESIDENT OF PETROLEUM INDUSTRY RESEARCH FOUNDATION NEW YORK IT HAS BEEN WIDELY KNOWN FOR SOME TIME THAT IRAQ DOES OPENLY TRUCK OIL TO JORDAN WITHOUT OBJECTIONS FROM THE UN IN RECENT INTERVIEWS IRAQI OIL OFFICIALS HAVE SAID THE EXPORTS TO JORDAN WERE AROUND 50000 BARRELS A DAY IN ADDITION THEY SAID IRAQ WAS PRODUCING SOME 450000 BARRELS A DAY OR MORE TO BE PROCESSED BY ITS OWN REFINERIES INTO FUELS FOR DOMESTIC CONSUMPTION BUT SOME WHO MONITOR WORLD OIL SUPPLIES ARE RAISING THEIR ESTIMATES OF IRAQI PRODUCTION MUCH HIGHER THAN THAT ONE REASON IS THAT MORE THAN ONE SHIPMENT OF IRAQI OIL IS SAID TO HAVE GONE TO IRAN WE BELIEVE SUBSTANTIAL OIL IS FLOWING INTO IRAN FROM IRAQ THROUGH VARIOUS METHODS SAID ONE OILINDUSTRY OFFICIAL HE BEGAN LOOKING INTO THE ISSUE SEVERAL WEEKS AGO AFTER PUZZLING OVER THE EXTRA HIGH VOLUMES IRAN WAS SELLING ON THE WORLD OIL MARKET 9303300068 930330 INTERNATIONAL RUSSIA CONGRESS BOOSTS ATTACK ON YELTSIN DEPUTIES PLAN REFERENDUM THAT MAY BLOCK CLAIM OF MANDATE BY PRESIDENT BY ADI IGNATIUS AND NEELA BANERJEE STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW AFTER NARROWLY FAILING TO IMPEACH PRESIDENT BORIS YELTSIN OVER THE WEEKEND RUSSIA'S CONGRESS OF PEOPLE'S DEPUTIES ON MONDAY DEALT THE PRESIDENT A SERIES OF BLOWS THAT ARE SURE TO AGGRAVATE THE COUNTRY'S POLITICAL CRISIS AT THE CLOSE OF A FOURDAY EMERGENCY SESSION DEPUTIES INTENSIFIED THEIR ASSAULT ON MR YELTSIN THE LEGISLATURE PASSED SEVERAL LAWS THAT ON PAPER AT LEAST SEVERELY WEAKEN THE PRESIDENT'S POWERS AND THEY VOTED TO COOPT MR YELTSIN'S PLANNED NATIONAL PLEBISCITE BY CALLING FOR A SIMULTANEOUS REFERENDUM THAT COULD BLOCK THE PRESIDENT'S ATTEMPT TO CLAIM A POPULAR MANDATE FOR HIS REFORM POLICIES BEHIND THE WAR OF WORDS THE DAY'S EVENTS SUGGESTED THAT RUSSIA'S POWER STRUGGLE IS IRRECONCILABLE RUSSIA NOW EFFECTIVELY HAS TWO FUNCTIONING GOVERNMENTS EACH ISSUING DECREES AND CLAIMING THE OTHER'S DECISIONS TO BE INVALID THE RULE OF LAW HAS BEEN IRRETRIEVABLY LOST IN RUSSIA SAYS MARINA SALEI A PROYELTSIN DEPUTY FROM ST PETERSBURG MR YELTSIN NO DOUBT IS TEMPTED TO ABOLISH CONGRESS BUT TO DO SO HE WOULD PROBABLY NEED ACTIVE MILITARY SUPPORT WHICH COULD DIVIDE THE COUNTRY AND PROVOKE BLOODSHED FOR DAYS TOP MILITARY OFFICIALS HAVE SWORN THEY WOULD STAY OUT OF POLITICAL WRANGLING OVER THE WEEKEND PAVEL GRACHEV MR YELTSIN'S MINISTER OF DEFENSE SEEMED TO HAVE SHIFTED HIS POSITION SLIGHTLY SAYING WE WILL TRY NOT TO GET INVOLVED IN THE CRISIS THE DISPUTE IN MOSCOW IS BEGINNING TO TRIGGER UNREST IN THE PROVINCES A GOVERNMENT OFFICIAL SAID 160 RALLIES WERE HELD AROUND THE COUNTRY LAST WEEK IN SARATOV 500 MILES FROM MOSCOW OFFICIALS HOSTILE TO MR YELTSIN STORMED THE LOCAL TELEVISION STATION MONDAY ACCORDING TO STATE TV NEWS THEY GRABBED CONTROL OF BROADCASTING EQUIPMENT AND ISSUED A STATEMENT CRITICAL OF THE PRESIDENT AT THE CONGRESS THINGS WERE NO LESS STORMY PARLIAMENTARY CHAIRMAN RUSLAN KHASBULATOV IN AN ABRUPT REVERSAL DISTANCED HIMSELF FROM THE COMPROMISE HE HAD BROKERED SUNDAY WITH MR YELTSIN AFTER SEEING HIS COMPROMISE REJECTED BY CONGRESS MR KHASBULATOV MONDAY LAMBASTED THE PRESIDENT AND HIS TEAM CLAIMING THAT CONGRESS HAD FOUGHT OFF AN ATTEMPT TO STAGE A COUP D'ETAT MR KHASBULATOV SAID IF THE PLAN DRAWN UP BY THE PRESIDENT'S TEAM HAD BEEN CARRIED THROUGH THIS WOULD HAVE MEANT TURNING THE CLOCK OF SOCIAL DEVELOPMENT BACK TO THE WORST PERIOD OF TOTALITARIANISM AND PROBABLY TO CIVIL WAR VYACHESLAV KOSTIKOV THE PRESIDENT'S PRESS SPOKESMAN COUNTERED THAT CONGRESS WAS BEING TURNED INTO AN INFERNAL MACHINE FOR DESTROYING CIVIL PEACE AND POLITICAL STABILITY IN RUSSIA IT REMAINS TO BE SEEN WHETHER CONGRESS WILL GET AWAY WITH THE RESTRICTIONS IT TRIED TO IMPOSE ON THE PRESIDENCY MR YELTSIN ANNOUNCED MONDAY NIGHT THAT HE IS CHALLENGING THE CONSTITUTIONALITY OF MANY OF THE ACTIONS TAKEN IN THE JUSTCONCLUDED CONGRESS STEEPED IN LEGAL JARGON THE CHALLENGE ASKS THE 13MEMBER CONSTITUTIONAL COURT TO INVESTIGATE ALLEGED VIOLATIONS OF THE COUNTRY'S BASIC LAW IF UNCHALLENGED CONGRESS'S ACTIONS WOULD REDUCE THE PRESIDENT TO A VIRTUAL FIGUREHEAD THE 1033MEMBER CONGRESS CONSISTING MAINLY OF FORMER COMMUNIST PARTY STALWARTS PASSED A RESOLUTION MONDAY THAT WOULD ALL BUT ELIMINATE THE PRESIDENT'S RULING AUTHORITY IT FORMALLY TERMINATED HIS ABILITY TO RULE BY DECREE IT ABOLISHED THE NETWORK OF PRESIDENT'S REPRESENTATIVES AROUND THE COUNTRY WHO ARE EMPOWERED TO ENSURE LOCAL COMPLIANCE WITH PRESIDENTIAL RULINGS AND IT STRIPPED THE PRESIDENT OF CONTROL OVER LOCAL BRANCHES OF NATIONAL INSTITUTIONS DEPUTIES SPECIFICALLY REVOKED MR YELTSIN'S MARCH 20 DECREE WHICH IGNITED THE CURRENT DISPUTE IN THAT DECREE MR YELTSIN HAD CLAIMED THAT DURING THE MONTH BEFORE THE APRIL 25 PLEBISCITE PRESIDENTIAL DECREES HAD PRIMACY OVER DECISIONS OF THE LEGISLATURE CONGRESS ALSO APPROVED A NATIONAL REFERENDUM THAT WOULD CALL FOR A VOTE OF CONFIDENCE IN THE PRESIDENT AND ASK VOTERS IF THEY WANT EARLY ELECTIONS FOR PRESIDENT AND PARLIAMENT THE CONGRESS'S CALL FOR A REFERENDUM SEEMS AIMED AT DERAILING THE PRESIDENT'S OWN PREVIOUSLY ANNOUNCED PLEBISCITE THROUGH WHICH HE HOPED TO GAIN A POPULAR MANDATE BOTH ARE SCHEDULED FOR APRIL 25 THERE MAY ACTUALLY BE TWO REFERENDUMS PROYELTSIN DEPUTY GLEB YAKUNIN TOLD THE NEWS AGENCY INTERFAX THE MORE REFERENDUMS WE HOLD THE BETTER THE TERMS OF CONGRESS'S REFERENDUM ARE STACKED AGAINST THE PRESIDENT WHO WOULD HAVE TO WIN THE APPROVAL OF MORE THAN 50 OF ALL ELIGIBLE VOTERS TO CLAIM A POPULAR MANDATE AND THUS AVOID SNAP ELECTIONS BY CONTRAST WHEN MR YELTSIN WAS ELECTED PRESIDENT IN 1991 HE ONLY HAD TO WIN A MAJORITY OF THE TURNOUT DEPUTIES FEAR THAT AFTER CONFIRMING HIS LEGITIMACY BORIS YELTSIN WILL DISSOLVE CONGRESS SAID ANDRANIK MIGRANIAN A POLITICAL COMMENTATOR AND MEMBER OF THE ADVISORY PRESIDENTIAL COUNCIL CONGRESS ALSO TRIED TO DISCREDIT THE PEOPLE POWER MOVEMENT THAT MR YELTSIN IS STIRRING UP IN A BIZARRE PIECE OF POLITICAL THEATER AN ANTIYELTSIN DEPUTY ALEXANDER GOLISHNIKOV ADDRESSED DEPUTIES WITH A WIDE BANDAGE WRAPPED AROUND HIS HEAD HE TOLD DEPUTIES HE HAD BEEN ATTACKED BY MR YELTSIN'S SUPPORTERS WHOM HE LABELED AS DRUG ADDICTS 9303300067 930330 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 PARALLAN COMPUTER INC INITIAL 225 MILLION COMMON SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES PHYSICIAN CORP OF AMERICA INITIAL THREE MILLION COMMON SHARES PRICED AT 1525 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1510 IS BACKED BY FREDDIE MAC GOLD 7 1/2 20YEAR MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 81 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION STRIPPED MORTGAGE BACKED SECURITIES TRUST 220 BACKED BY 150 MILLION OF TRANCHE C FROM REMIC 1992160 THAT REMIC IS IN TURN BACKED BY FANNIE MAE'S 9 MORTGAGE SECURITIES THE DEAL IS UNDERWRITTEN BY KIDDER PEABODY AND SETTLES APRIL 15 DEPFA FINANCE NV AMSTERDAM GERMANY PARENT 500 MILLION DEUTSCHE MARKS OF 6 1/2 EUROBONDS DUE MAY 3 2000AT ISSUE PRICE 10130 VIA DEUTSCHE BANK AG REOFFER PRICE 9935 TO YIELD 662 ANNUALLY SPREAD 30 BASIS POINTS ABOVE 7 3/4 GERMAN BUND DUE FEBRUARY 2000 GUARANTOR DEUTSCHE PFANDEBREIFE UND HYPOTHEKEN BANK WIESBADEN FEES 2 1/4 9303300066 930330 CLINTON TO SEEK TO END BAN ON US FUNDING ABORTIONS WASHINGTON PRESIDENT CLINTON HAS DECIDED TO MOVE TOWARD REMOVING THE PROHIBITION ON FEDERAL FUNDING OF ABORTIONS FOR POOR WOMEN WHITE HOUSE SPOKESMAN ARTHUR JONES SAID THE PRESIDENT IS GOING TO WORK TOWARD LIFTING THE BAN THE ACTION IS EXPECTED TO BE PART OF THE PRESIDENT'S DETAILED BUDGET PROPOSAL BEING RELEASED NEXT WEEK DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON CONSISTENTLY BACKED ABORTION RIGHTS BUT NEVER MENTIONED PLANS TO LIFT THE BAN ON FEDERAL FUNDING FOR ABORTIONS HOWEVER VICE PRESIDENT ALBERT GORE SAID LAST SUMMER THAT FEDERAL MONEY FOR THE PROCEDURE SHOULD BE PART OF A NATIONAL HEALTH PROGRAM THE MOVE WOULD REQUIRE OVERTURNING THE 1977 HYDE AMENDMENT WHICH PREVENTS FEDERAL FUNDS FROM BEING USED FOR ABORTIONS EXCEPT WHEN THE MOTHER'S LIFE IS IN DANGER 9303300065 930330 LEISURE & ARTS BOOKSHELF LOVE IN MURDEROUS TIMES BY JOSHUA RUBENSTEIN DURING STALIN'S PURGE OF HIS PRINCIPAL RIVALS THE GREATEST HUMAN DRAMA SURROUNDED NIKOLAI BUKHARIN WHOM LENIN HAD ONCE CALLED THE GOLDEN BOY OF THE REVOLUTION CONDEMNED AT A SHOW TRIAL ORCHESTRATED BY STALIN HIMSELF BUKHARIN AND HIS IDEAS DISAPPEARED FROM SOVIET HISTORY HIS YOUNG WIFE WAS DISPATCHED TO SIBERIA AND THEIR INFANT SON CONSIGNED TO AN ORPHANAGE NOT FOR A SINGLE DAY DID TERRIBLE MEMORIES FAIL TO TROUBLE MY MIND ANNA LARINA WRITES IN HER PREFACE TO THIS I CANNOT FORGET THE MEMOIRS OF NIKOLAI BUKHARIN'S WIDOW TRANSLATED BY GARY KERN NORTON 384 PAGES 2495 FIRST PUBLISHED DURING THE GORBACHEV ERA IT IS A COMPELLING IF OCCASIONALLY DISJOINTED ACCOUNT OF THE REVOLUTIONARY AND THE ERA THAT DESTROYED HIM BORN IN 1914 MS LARINA WAS ADOPTED AND RAISED BY YURY LARIN A PROMINENT ADVISER TO LENIN SHE WAS BROUGHT UP AMONG THE BOLSHEVIK LEADERS AND SAT ON LENIN'S KNEE BUKHARIN WAS HER FAVORITE TWENTYSIX YEARS HER SENIOR HE INDULGED HER CHILDISH AND ADOLESCENT ADMIRATION IN A SCENE HARD TO IMAGINE IRREPRESSIBLE MS LARINA ONCE RECRUITED STALIN TO DELIVER A LOVE LETTER TO BUKHARIN BUT IT WAS NOT UNTIL 1934 WHEN BUKHARIN WAS ALREADY A LEPER IN HIS OWN COUNTRY THAT THEY MARRIED MS LARINA WAS 20 BUKHARIN HAD ONLY FOUR YEARS LEFT TO LIVE AS THE HISTORIAN STEPHEN F COHEN APTLY OBSERVES IN HIS INTRODUCTION MS LARINA'S MEMOIRS ARE AT ONCE A FAMILY TALE LOVE STORY AND QUEST FOR POLITICAL JUSTICE LIKE MANY OTHER FORMER PRISONERS SHE WAS DEEPLY AFFECTED BY THE INTERNAL WORKINGS OF STALIN'S MONSTROUS MACHINE IN ONE CHILLING EPISODE SHE DESCRIBES BEING INTERROGATED BY STALIN'S SECRETPOLICE CHIEF LAVRENTY BERIA WHO HAD ADMIRED HER WHEN SHE WAS A TEENAGER NOW SHE SAT BEFORE HIM AS THE WIDOW OF THE DISGRACED BUKHARIN HE SEEMED SOLICITOUS AT FIRST OFFERING HER TEA AND FRUIT BUT WHEN SHE DEFENDED BUKHARIN BERIA ERUPTED MAKING IT CLEAR THAT HIS SYMPATHY FOR HER HAD ENDED WITH BUKHARIN'S ARREST AS FOR HER OWN FATE HE WARNED HER TO SHUT UP ABOUT BUKHARIN OR ELSE FACE CERTAIN EXECUTION HER BOOK HOWEVER IS MUCH MORE THAN THE STORY OF HER TWENTY YEARS OF SUFFERING AND SURVIVAL IN THE GULAG AS MR COHEN POINTS OUT MS LARINA WITNESSED THE PURGES FROM INSIDE THE KREMLIN IN BUKHARIN'S APARTMENT THE SAME QUARTERS VACATED BY STALIN AFTER THE DEATH OF HIS WIFE NADEZHDA ALLILUYEVA IN 1932 AS A PERSONAL FAVOR STALIN HAD ASKED BUKHARIN TO TRADE APARTMENTS WITH HIM BECAUSE OF HIS PAINFUL MEMORIES IN FACT ALTHOUGH HIS WIFE'S DEATH WAS RULED A SUICIDE MANY PEOPLE THOUGHT STALIN HAD KILLED HER BUKHARIN HIMSELF MS LARINA RELATES THOUGHT HE WAS CAPABLE OF SUCH AN ACT OTHERWISE BUKHARIN EMERGES FROM THESE MEMOIRS AS A MAN WITH NO POLITICAL GUILE WHO FAILED TO GRASP STALIN'S FULL INTENTIONS AND REFUSED TO MANEUVER IN ORDER TO SAVE HIMSELF THIS IS NOT ALTOGETHER CONVINCING IT SEEMS MORE LIKELY THAT BUKHARIN CHOSE TO SPARE HIS YOUNG WIFE HIS FULL KNOWLEDGE OF STALIN'S CHARACTER SO THAT THEIR TIME TOGETHER WOULD NOT BE OVERWHELMED BY DESPAIR BUKHARIN MAY NOT HAVE BEEN A SUCCESSFUL POLITICIAN BUT THE HISTORICAL RECORD REVEALS A MAN OF INTELLECTUAL CONVICTION WHO FORESAW THE CONSEQUENCES OF STALIN'S POLICIES HE ARGUED AGAINST COLLECTIVIZATION AND DOCUMENTED THE HORRORS HE SAW IN THE SOVIET PRESS FOR AS LONG AS HE COULD FOR ALL OF BUKHARIN'S BRILLIANCE A LEADING THEORETICIAN WITHIN THE PARTY HE WAS ALSO A PASSIONATE STUDENT OF LITERATURE SCIENCE AND NATURE HIS TEMPERAMENT WAS UNSUITED TO THE INTRIGUES OF KREMLIN POLITICS MS LARINA DESCRIBES HIM AS SUFFERING FROM ACUTE SENSITIVITY THE OPPOSITE QUALITY TO STALIN'S INHUMAN CAPACITY TO MAKE OTHERS SUFFER AT THE TIME OF THE COLLECTIVIZATION IN 1930 MS LARINA RECALLS WHEN BUKHARIN WAS TRAVELING THROUGH THE UKRAINE HE SAW PACKS OF CHILDREN BEGGING FOR ALMS THEIR STOMACHS SWOLLEN FROM HUNGER NIKOLAI IVANOVICH GAVE THEM ALL HIS MONEY WHEN HE GOT BACK TO MOSCOW HE STOPPED BY TO SEE MY FATHER TOLD HIM ABOUT THE TRIP CRIED OUT IF MORE THAN TEN YEARS AFTER THE REVOLUTION ONE CAN SEE SUCH THINGS AS THIS WHAT WAS THE POINT OF DOING IT' COLLAPSED ON THE COUCH AND SOBBED HYSTERICALLY DURING BUKHARIN'S TRIAL IN MARCH 1938 MS LARINA WAS ALREADY IN TOMSK PRISON AS THE WIFE OF A TRAITOR TO THE FATHERLAND STALIN SPARED HER LIFE BUT 18 YEARS PASSED BEFORE SHE WAS REUNITED WITH HER SON IN A REMOTE SIBERIAN VILLAGE HE PICKED HER OUT AT THE TRAIN STATION ALTHOUGH HE HAD NOT SEEN MY PHOTOGRAPH SINCE HE WAS A CHILD MS LARINA TELLS US MY LOOK OF ANTICIPATION MUST HAVE GIVEN ME AWAY ANOTHER 32 YEARS PASSED BEFORE BUKHARIN WAS FULLY REHABILITATED IT WAS ONLY UNDER GORBACHEV'S POLICY OF GLASNOST THAT HIS WORKS WERE REPUBLISHED AND THE SOVIET PUBLIC COULD JUDGE FOR ITSELF HOW MUCH OF AN ALTERNATIVE HE POSED TO STALIN'S MURDEROUS POLICIES FOR ITS INSIGHTFUL PERSONAL ACCOUNT OF STALIN'S GREAT PURGE THIS I CANNOT FORGET COMPLEMENTS THE CLASSIC VOLUMES OF NADEZHDA MANDELSTAM WHOSE HUSBAND THE POET OSIP MANDELSTAM WAS PROTECTED BY BUKHARIN FOR NEARLY A DECADE BOTH THE POET AND THE POLITICIAN WERE FORTUNATE TO HAVE DEVOTED REMARKABLE WIVES WITH THE MORAL AND PHYSICAL STAMINA TO OUTLIVE THEIR HUSBANDS UNTIL THE TURNS OF RUSSIAN HISTORY MADE IT POSSIBLE TO BEAR WITNESS MR RUBENSTEIN IS THE NORTHEAST REGIONAL DIRECTOR OF AMNESTY INTERNATIONAL USA 9303300064 930330 CHANGE MASTERS OUTSIDERS WHO TRANSFORM COMPANIES GENTLE PERSUASION NEW CEO AT HUGHES STUDIED ITS MANAGERS GOT THEM ON HIS SIDE THAT LET ARMSTRONG MOVE FAST TO RESHAPE GM UNIT AS MORE MARKETDRIVEN IBM EXPATRIATE MAKES GOOD BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES SOME WARINESS AND BITTERNESS GREETED C MICHAEL ARMSTRONG'S ARRIVAL AS CHIEF EXECUTIVE OFFICER AT HUGHES AIRCRAFT CO LAST APRIL A 31YEAR INTERNATIONAL BUSINESS MACHINES CORP EXECUTIVE MR ARMSTRONG DIDN'T KNOW A LOT ABOUT MISSILES AIRCRAFT OR DEFENSE CONTRACTS AND IT WASN'T AS THOUGH HUGHES A UNIT OF GENERAL MOTORS CORP HAD NEEDED TO HIRE AN OUTSIDER IN THE MINDS OF MANY HUGHES VETERANS ITS OWN EXECUTIVE RANKS WERE FILLED WITH QUALIFIED CEO CANDIDATES WHILE THESE PEOPLE QUESTIONED WHETHER MR ARMSTRONG BELONGED IN THE JOB HE WAS DOING SOME QUESTIONING OF HIS OWN BEFORE ACCEPTING THE POSITION HE SPENT EIGHT ENTIRE WORKDAYS INVESTIGATING HUGHES'S TOP SEVEN MANAGERS REVIEWING THEIR PERSONNEL FILES AS WELL AS INTERVIEWING THEIR CORPORATE OVERSEERS HEADHUNTERS WHO HAD TRACKED THEIR CAREERS AND OTHERS I DON'T CARE TO IDENTIFY HE SAYS WHAT I WAS UNSURE OF HE RECALLS WAS DID HUGHES HAVE A TOP MANAGEMENT TEAM THAT I COULD GO IN AND WORK WITH AND EARN THEIR RESPECT AND MAKE THAT A MUTUAL RESPECT THIS DOUBTING ON BOTH SIDES IS INEVITABLE WHEN A LARGE COMPANY POPULATED WITH CAREER EXECUTIVES GOES OUTSIDE TO HIRE A CHIEF EXECUTIVE AS IBM DID LAST WEEK IN HANDING THE REINS TO LOUIS V GERSTNER CEO OF RJR NABISCO HOLDINGS CORP AND THE IMPLICATIONS ARE SERIOUS IF A NEW CHIEF BROUGHT IN TO REVIVE A COMPANY INHERITS A WEAK EXECUTIVE TEAM GETTING RID OF IT AND ESTABLISHING A NEW ONE COULD TAKE TOO MUCH TIME AND UNDERMINE THE TURNAROUND EFFORT INDEED MR ARMSTRONG SAYS THAT IF THE EXECUTIVE TEAM AT HUGHES HADN'T IMPRESSED HIM HE MIGHT NOT HAVE TAKEN THE JOB THE EFFORT CAN ALSO BE WRECKED BY DOUBTS ABOUT THE NEW MANAGER HUGHES VICE CHAIRMAN MICHAEL T SMITH RECALLS THE TIME THAT HUGHES RECRUITED AS MANAGER OF ITS LABORATORIES SOMEONE WHO FAILED TO ENGENDER THE RESPECT OF RESEARCHERS THE OUTCOME ORGAN REJECTION SAYS MR SMITH AT HUGHES MR ARMSTRONG CONFRONTED THIS ISSUE QUICKLY AND HEAD ON BY ASSURING TOP EXECUTIVES HE ADMIRED THEIR TALENTS AND WANTED THEM TO BE PART OF HIS TEAM THEN GIVING THEM A WEEK TO DECIDE TO JOIN HIS EFFORTS OR ELSE CLEAR OUT THEIR DESKS HIS BRASHNESS WON THEIR RESPECT AS DID THE DETAILED KNOWLEDGE HE DEMONSTRATED ABOUT EACH OF THEIR CAREERS AND IN NO TIME HE HAD THEM AGREEING NOT ONLY TO STAY BUT TO CARRY OUT HIS PLAN FOR RESTRUCTURING HUGHES AND JUMPSTARTING REVENUE GROWTH SUCH MANEUVERING IS AN ART FORM SAYS JEFFREY HEILPRIN A MANAGING DIRECTOR OF DELTA CONSULTING GROUP WHICH COUNSELS COMPANIES WITH NEW LEADERS THE TRICK IS TO HELP CREATE A CLEAR VISION OF A RADICALLY DIFFERENT ORGANIZATION THAT DOESN'T LOSE CONTINUITY WITH ITS STRENGTHS AND ALLOWS SOME IF NOT ALL OF ITS KEY MANAGERS TO STAY ON BOARD MR HEILPRIN ADDS THAT AS MUCH AS CHARM I'D SAY IT'S TRUTH IN THE PERSON THAT HELPS WIN OVER SUBORDINATES HUGHES EXECUTIVES SAY THEIR COMMANDING 54YEAROLD LEADER IS NOTHING IF NOT HONEST HE'S STRAIGHT UP HE TELLS YOU WHAT HE THINKS SAYS ANTHONY IORILLO SENIOR VICE PRESIDENT MR ARMSTRONG'S SUCCESS AT CULTIVATING A SENSE OF TEAMWORK HAS HELPED MAKE A FINANCIAL SUCCESS OF HIS RESTRUCTURING PLAN WHICH COMBINES COST CUTTING WITH A GREATER FOCUS ON MARKETING A SHIFT AWAY FROM DEFENSE WORK AND EXPEDITED DEVELOPMENT OF NEW BUSINESSES SUCH AS A MOVE TOWARD SATELLITE DISTRIBUTION OF ENTERTAINMENT PROGRAMS IN THE YEAR SINCE HE TOOK OVER OPERATING PROFITS IGNORING ONETIME ADJUSTMENTS HAVE LEAPT 48 AT GM HUGHES ELECTRONICS CORP THE UMBRELLA COMPANY OVER HUGHES AND DELCO ELECTRONICS THAT IS DESPITE A 450 MILLION ACQUISITION OF GENERAL DYNAMICS CORP'S MISSILE BUSINESS AND A RESTRUCTURING THAT CLOSED 19 MILLION SQUARE FEET OF HUGHES PLANT AND OFFICE SPACE COSTS ARE DOWN 30 AND GENERAL MOTORS CLASS H COMMON STOCK REFLECTING PERFORMANCE AT GM HUGHES IS UP 37 IN THE YEAR SINCE MR ARMSTRONG TOOK OVER SO SWIFT HAS BEEN HIS SUCCESS THAT IN DECEMBER GM GAVE MR ARMSTRONG THE ADDITIONAL TITLE OF GM HUGHES ELECTRONICS CHAIRMAN OVERSEEING BOTH THE DIVERSE HUGHES EMPIRE OF MISSILES SATELLITES AND RADAR SYSTEMS AND DELCO'S VAST AUTOMOTIVE ELECTRONICS BUSINESS TO SOME EXTENT CHANGE WAS ALREADY BREWING AT HUGHES AIRCRAFT WHEN MR ARMSTRONG TOOK OVER IT HAD SLASHED 20000 OF 83000 JOBS TO ADJUST FOR SHRINKAGE IN MILITARY CONTRACTS AND THE CUT IN PLANT AND OFFICE SPACE WAS IN THE WORKS POTENTIALLY HOT NEW COMMERCIAL PRODUCTS SUCH AS DIRECT SATELLITETOHOME TELEVISION AND ADVANCED CELLULAR PHONE SYSTEMS WERE BARRELING TOWARD PRODUCTION EVEN THE AMBITIOUS MISSILE ACQUISITION FROM GENERAL DYNAMICS HAD BEEN STUDIED FOR SIX MONTHS AND SAYS E PENDLETON JAMES THE EXECUTIVE RECRUITER WHO BROUGHT MR ARMSTRONG TO HUGHES THE COMPANY HAD THE MOST SOPHISTICATED MANAGEMENT OF ANY ELECTRONICS COMPANY IN THE US YET HUGHES NEEDED A NEW KIND OF HELMSMAN TO END THE DRIFT THAT HAD PREVAILED SINCE GM'S 1985 ACQUISITION OF THE COMPANY FOUNDED BY THE ECCENTRIC AVIATOR AND INDUSTRIALIST HOWARD HUGHES UP UNTIL THEN HUGHES WAS A LARGELY DEFENSEORIENTED TECHNOLOGY SHOP WHERE MARKETING AND PROFITMAKING SAVVY WERE LESS NECESSARY SOME INCOME WAS FUNNELED TO A NONPROFIT MEDICALRESEARCH INSTITUTE UNDER THE COMPANY'S TAXSHELTERED STRUCTURE WITH CHAIRMAN MALCOLM CURRIE SET TO RETIRE HUGHES RETAINED MR JAMES TO LOOK FOR A REPLACEMENT AND AMONG OTHERS HE CONTACTED MR ARMSTRONG SINCE GRADUATING FROM MIAMI UNIVERSITY IN OXFORD OHIO THE DETROIT NATIVE HAD NEVER WORKED ANYWHERE EXCEPT IBM AND IN RECENT YEARS HE HAD GAINED A REPUTATION THERE AS A TURNAROUND SPECIALIST ASSIGNED IN 1987 TO SHAPE UP FLABBY EUROPEAN AND MIDDLE EASTERN OPERATIONS THAT WERE SUFFERING FROM A FAILED SENSE OF ATTENTION TO CUSTOMERS HE EMBARKED AT ONE POINT ON A 45DAY ROAD TRIP TO TOUR OPERATIONS SO SUCCESSFUL WAS HIS TURNAROUND THAT TWO YEARS LATER IBM NAMED HIM HEAD OF GLOBAL OPERATIONS BY NOVEMBER 1991 HOWEVER IBM CHAIRMAN JOHN AKERS HAD MADE IT CLEAR TO MR ARMSTRONG THAT HE WOULDN'T ASCEND TO THE CHAIRMANSHIP THERE AFTER HUDDLING WITH HIS WIFE ANNE OVER THEIR OPTIONS MR ARMSTRONG DECIDED THAT IT WAS TIME TO REPOT' AND DO SOMETHING NEW WITH MY LIFE NOT LONG AFTER THAT CAME THE CALL FROM MR JAMES IN TAKING THE JOB MR ARMSTRONG HAD FEW ILLUSIONS I KNEW WHAT THE PROBLEMS WOULD BE HE SAYS REVENUE HAD BEEN FLAT AND ITS MARGINS SHRINKING DEEP WITH NEW PRODUCTS AND IDEAS HUGHES LACKED THE CAPITAL TO FUND THEM THE PROBLEM WAS THIS COMPANY WAS NOT GROWING AND IF YOU'RE GOING TO BE A HIGHTECHNOLOGY LEADER IN THE ELECTRONICS WORLD YOU'VE JUST GOT TO GROW HE SAYS NINETY DAYS INTO HIS NEW JOB SAYS MR ARMSTRONG HE SETTLED ON HIS NO 1 PRIORITY GETTING THE COMPANY'S LONGDISCUSSED RESTRUCTURING OFF THE DIME IT HAD BEEN TALKED ABOUT AT HUGHES FOR YEARS HE SAYS I GOT IT DONE INDEED HE STARTED MAKING CHANGES SO QUICKLY THAT SOME SUBORDINATES HE RECALLS CONFRONTED HIM BY ASKING WASN'T THAT KIND OF A HIP SHOT I SAID HELL NO' I MEAN TIME IS YOUR ENEMY MR IORILLO THE SENIOR VICE PRESIDENT CREDITS MR ARMSTRONG WITH ACCELERATING HUGHES'S RESTRUCTURING PLAN BY AT LEAST A YEAR UNLIKE VETERAN HUGHES EXECUTIVES MR ARMSTRONG ISN'T TIED TO THE ROMANCE OF THE PAST SO HE CAN BE MUCH MORE OBJECTIVE THAN OTHERS MIGHT BE SAYS MR IORILLO AT A COMPANY THAT HAD LONG EMPHASIZED PRODUCT DEVELOPMENT OVER THE NEEDS OF CUSTOMERS MR ARMSTRONG PERSUADED HIS EXECUTIVES TO CONSIDER ABOVE ALL ELSE THE MARKET AND ITS NEEDS AND TO REORGANIZE THE COMPANY ACCORDINGLY I GOT THAT MANAGEMENT TEAM CONVINCED THAT ORGANIZING TO MARKETS WAS RIGHT AND THEY ORGANIZED TO MARKETS NOT ME HE SAYS IT MAY SOUND LIKE BUSINESS 101 BUT SOMETIMES FUNDAMENTALS ARE WHAT DICTATE THE SEQUENCE OF EVENTS AND THE PRIORITIES WITH THAT TWO LAYERS OF MANAGEMENT WERE STRIPPED FROM ORGANIZATION CHARTS BRINGING ALL TOP MANAGERS CLOSER TO BUYERS AND THEIR NEEDS SEVEN TECHNOLOGY GROUPS WERE EVENTUALLY CONSOLIDATED INTO FIVE SECTORS INTERNATIONAL DIVISIONS IN CHINA AND EUROPE WERE JUGGLED ANEW AND THEIR OFFICES RELOCATED TO PUT SENIOR STAFFERS IN THE COUNTRIES THEY SERVE AMONG OTHER MOVES MR ARMSTRONG HAS BEEN RELOCATING THE COMPANY'S HUGE CALIFORNIA MISSILEBUILDING OPERATION TO ARIZONA WHERE COSTS ARE LOWER BACK AT HEADQUARTERS HE CUT OUT A SERIES OF MONTHLY MANAGEMENT MEETINGS AND ENACTED A SYSTEM IN WHICH EACH HUGHES BUSINESS BENCHMARKS COMPETITORS' COSTS AND PRODUCTION TIMES MANAGERS WERE DISCOURAGED FROM APPROACHING HIM UNLESS THERE WAS TROUBLE I'M NOT NEEDED TO RUN THEIR BUSINESSES HE SAYS HE IS CAPABLE OF HANDSON MANAGEMENT WHEN CONDITIONS WARRANT THOUGH AND PERSONALLY SPED UP FORMATION OF A PARTNERSHIP WITH VICTOR CO OF JAPAN TO PRODUCE AND MARKET NEW TVPROJECTION SYSTEMS WHEN HIS NORMAL REVIEW SHOWED THAT THERE WASN'T ENOUGH URGENCY IN THE PROCESS JEFFREY OWENS MANAGER OF A NEW PROJECT TO DEVELOP FOREWARN RADAR SYSTEMS TO HELP SCHOOLBUS DRIVERS DETECT CHILDREN WALKING IN BLIND SPOTS RECALLS MR ARMSTRONG'S ADMONISHING HIM LAST DECEMBER TO CHOP COSTS RAISE QUALITY AND DO IT ALL IN A THIRD THE TIME THAT HAD BEEN PLANNED THE SYSTEM WENT TO MARKET THIS MONTH SEVERAL MONTHS AHEAD OF SCHEDULE EVER CONSCIOUS OF MARKETING MR ARMSTRONG ALSO SET ASIDE A SEVENDAY BLOCK OF TIME AND DID NOTHING BUT CALL ON CUSTOMERS EVEN BEFORE HE OFFICIALLY STARTED AT HUGHES HE SAYS THE CUSTOMERS WERE MOSTLY HIGHLEVEL DEFENSE DEPARTMENT OFFICIALS INCLUDING MEMBERS OF THE JOINT CHIEFS OF STAFF FIRST THEY'D SAY OH MIKE WHAT A MARVELOUS COMPANY WHAT WONDERFUL TECHNICAL TALENT PEOPLE OF INTEGRITY AND LEADINGEDGE INNOVATION' HE RECALLS THEN THEY WOULD ADD YOUR PRICES ARE TOO HIGH TOO OFTEN AND YOUR TEAM DOESN'T LISTEN AS MUCH AS THEY SHOULD IT RANG FAMILIAR IN HIS FIRST THREE YEARS OVER IBM OPERATIONS IN EUROPE HE WAS RUNNING INTO A LOT OF THE SAME THINGS HE SAYS MR SMITH THE HUGHES VICE CHAIRMAN SAYS MR ARMSTRONG'S BIGGEST CONTRIBUTION HAS BEEN TO FOCUS ON CUSTOMER SATISFACTION THERE WERE SO MANY TIMES THAT I SAT HERE AND LOOKED AT PROBLEMS WE HAD GOTTEN INTO NOT BECAUSE WE SOLD SOMETHING WE COULDN'T BUILD BUT BECAUSE THE COMPANY KEPT BUILDING PRODUCTS THAT EXCEEDED CUSTOMERS' NEEDS SAYS MR SMITH HE ADDS WE GOT TRIPPED UP IN OUR UNDERWEAR DOING THAT STUFF BESIDES VISITING CUSTOMERS MR ARMSTRONG HAS SPENT WEEKS TOURING HUGHES PLANT SITES AND OFFICE COMPLEXES FROM LOS ANGELES TO MARYLAND ACCOMPANIED ONLY BY A LOCAL MANAGER HE REGULARLY REFUSES TO LET HIGHERLEVEL SUPERVISORS TAG ALONG A RECENT TOUR OF THE COMPANY'S TUCSON ARIZ MISSILEBUILDING OPERATIONS SHOWS WHY IN THE PAST SAYS PRODUCTION SUPERVISOR FRANK C LOPEZ TOPMANAGEMENT TOURS PRODUCED STAGED PHOTOGRAPHS OF MIDDLE MANAGERS WITH THE BRASS BUT MR ARMSTRONG REQUIRING HIS FELLOW EXECUTIVES TO HANG BACK 20 YARDS ASKS GOOD SPECIFIC QUESTIONS ABOUT THINGS LIKE DEFECT RATES SAYS MR LOPEZ I LEARN A LOT I REALLY DO MR ARMSTRONG SAYS OF BEING IN THE FIELD ADDING THAT IT'S IMPORTANT TO GET THAT SYNERGY BETWEEN LEADERSHIP AND THE ORGANIZATION PARTICULARLY IN THE MIDST OF CHANGE MR ARMSTRONG ALSO GETS CREDIT INTERNALLY FOR REVAMPING ANTIQUATED PAY AND INCENTIVE PROGRAMS AND DEVISING A BENEFITS PACKAGE FOR LAIDOFF WORKERS THAT IS AMONG THE MOST GENEROUS IN THE INDUSTRY HE SAYS HE LEARNED AT IBM THAT PAYING GOOD BENEFITS WAS THE RIGHT THING TO DO AND THAT IT COMMUNICATES TO THE 85 OF THE PEOPLE WHO WOULD STILL BE HERE THE RESPECT AND SENSITIVITY THAT WE HAVE IN THE TOTAL COMPANY ONE CONCERN AMONG TOP EXECUTIVES AT HUGHES WAS THAT MR ARMSTRONG WOULD CONSOLIDATE POWER BY DISMANTLING A SIXMEMBER OFFICE OF THE CHAIRMAN INSTEAD HE ENLARGED IT BY ONE ADDING JOHN C WEAVER PRESIDENT OF HUGHES SYSTEMS INTEGRATION AND A RETIRED NAVY REAR ADMIRAL WHOSE CAREER MR ARMSTRONG HAD STUDIED CAREFULLY MR ARMSTRONG ALSO WON AS BIG ALLIES TWO HUGHES EXECUTIVES WHO HAD BEEN CONSIDERED POTENTIAL CANDIDATES FOR CHIEF EXECUTIVEMESSRS IORILLO AND SMITH MR SMITH A 20YEAR GM MAN WHO JOINED HUGHES AFTER THE ACQUISITION AND WHO IS GM CHIEF EXECUTIVE JOHN F SMITH JR'S BROTHER SAYS HE NEVER VIEWED HIMSELF AS A LOGICAL CHOICE FOR CHAIRMAN I THINK OUR PEOPLE SAW THE NEED FOR CHANGE AND MAYBE DIDN'T KNOW QUITE HOW TO GO ABOUT DOING IT SAYS MR SMITH WHO HEADS HUGHES'S MISSILE BUSINESS AND IS A KEY LINK TO GM IN ITS CONTINUING EFFORT TO USE HUGHES TO IMPROVE ITS AUTO ELECTRONICS MR IORILLO SAYS MR ARMSTRONG MADE A FEW GOOD MOVES RIGHT OFF THE BAT ONE VIEW OF MR ARMSTRONG IS THAT HE MERELY IMPLEMENTED A RESTRUCTURING PROGRAM ALREADY MAPPED OUT AT HUGHES AND A TURNAROUND WOULD HAVE OCCURRED WITHOUT HIM PERCHED IN HIS FAVORITE SEAT ABOARD THE COMPANY'S GULFSTREAM JET BOUND FOR THE HUGHES ARIZONA MISSILE OPERATIONS MR ARMSTRONG BRISTLES AT ANY SUCH SUGGESTION LET'S GO THROUGH IT HE SAYS FIRMLY PITCHING FORWARD AS HE RECOUNTS HIS VIEW OF HOW HE UNCOVERED AND CORRECTED THE CULTURAL FLAWS DRAGGING DOWN HUGHES FIRST OF ALL THERE WAS NOT A PLAN TO REORGANIZE THE COMPANY TO MARKETS HE SAYS THAT TOOK SOME SELLING LOADING UP ON TWO HUGE DANISH ROLLS AND COFFEE HE ADDS THAT THE JOB WAS TO GET PEOPLE GEARED UP TOWARD MARKETS AND CUSTOMERS NOT TO PRODUCTS AND TECHNOLOGY I BROUGHT THAT MR ARMSTRONG CONCLUDES THAT OUTSIDERS ARE SOMETIMES BEST ABLE TO CHANGE CORPORATE CULTURES I DON'T THINK THERE'S A PRESCRIPTION FOR AMERICAN BUSINESS THAT SAYS HEY EVERY 8 1/2 YEARS WE OUGHT TO HAVE SOMEBODY FROM THE OUTSIDE COME IN AND TAKE OVER HE SAYS I DO THINK THAT THE SITUATION IS SOMETIMES OBVIOUS THAT AN OUTSIDE AGENT OF CHANGE CAN BE MORE EFFECTIVE THAN A NATURAL SUCCESSOR 9303300063 930330 MEXICO RULING PARTY CHIEF IS REMOVED IN SCANDAL MEXICO CITY THE HEAD OF MEXICO'S LONGRULING PARTY WAS REMOVED FOLLOWING A CAMPAIGNFINANCING SCANDAL PRESIDENT CARLOS SALINAS DE GORTARI ASKED GENARO BORREGO ESTRADA PRESIDENT OF THE INSTITUTIONAL REVOLUTIONARY PARTY TO STEP DOWN YESTERDAY AS THE TROUBLED PARTY MET IN A CONVENTION THE DISMISSAL FOLLOWS DISCLOSURES HERE LAST MONTH THAT MR BORREGO PITCHED FOR MULTIMILLIONDOLLAR DONATIONS FOR THE PARTY AT A DINNER ATTENDED BY MEXICO'S RICHEST BUSINESSMEN THOSE ATTENDING THE DINNER ACKNOWLEDGED THEY WERE ASKED TO FORM SUPPORT BLOCS TO RAISE UPWARD OF 25 MILLION EACH THE DINNER WAS WIDELY VIEWED AS AN ATTEMPT TO PRIVATIZE THE PARTY'S FINANCES THE PARTY HAS KEPT ITS POWER CHOKEHOLD WITH OFTENCORRUPT ELECTIONS AND A STEADY SOURCE OF GOVERNMENT FINANCING THERE IS A 322000 CAP ON POLITICAL DONATIONS BUT POLITICAL LEADERS HAVE YET TO DISCLOSE HOW THEY PLAN TO ENFORCE THE LIMIT AND MAKE PUBLIC DISCLOSURES ON CAMPAIGN FINANCING MR BORREGO WAS ASKED TO TAKE OVER THE COUNTRY'S SOCIAL SECURITY INSTITUTE MR SALINAS ALSO ASKED THE HEAD OF MEXICO'S MINISTRY OF COMMUNICATIONS AND TRANSPORTATION TO STEP ASIDE FOR A FOREIGNSERVICE POSTING THE MINISTRY EARLIER THIS YEAR WAS HURT BY ALLEGATIONS EARLIER THIS YEAR THAT ITS STAFF PRESSED AN AGENT OF INTERNATIONAL BUSINESS MACHINES CORP FOR A 1 MILLION BRIBE 9303300062 930330 ENTERPRISE PARENTING MAGAZINES HAVE TO COPE WITH GROWING PAINS NEW CONTENTS AND ADVERTISING PROMOTIONS HELP PUBLICATIONS PROSPER BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL AN ENTREPRENEURIAL INDUSTRY OF FREE LOCAL PUBLICATIONS FOR YOUNG FAMILIES IS ITSELF GROWING UP DURING THE 1980S MOTHERS TEACHERS AND OTHER ENTREPRENEURS SAW THAT WORKING MOTHERS NEEDED INFORMATION ABOUT LOCAL FAMILY ACTIVITIES AND SERVICES THE RESULT A PROLIFERATION OF MONTHLY PERIODICALS CRAMMED WITH LOCAL LISTINGS PARENTING TIPS AND ADVERTISEMENTS FOR FAMILY ATTRACTIONS DAYCARE CENTERS AND THE LIKE THE NUMBER OF LOCAL PARENTING PUBLICATIONS HAS NEARLY TRIPLED TO 72 FROM 27 IN THE PAST FIVE YEARS ACORDING TO PARENTING PUBLICATIONS OF AMERICA A TRADE GROUP IN SAN ANTONIO CARVING OUT THE RIGHT MARKET NICHE IS A CRITICAL FIRST STEP FOR ANY ENTREPRENEUR BUT AS THE PARENTING PUBLISHERS ARE FINDING LONGTERM PROSPERITY ALSO DEPENDS ON A CRITICAL NEXT PHASE FINDING WAYS TO CONSOLIDATE INITIAL SUCCESS AND KEEP GROWING SO MANY PUBLISHERS ARE OVERHAULING THEIR EDITORIAL LOOK AND CONTENT SOME ARE TRYING TO ENTICE NATIONAL ADVERTISING BY DANGLING BETTER ACCESS TO THEIR READERS OFTEN HIGHLY EDUCATED AND AFFLUENT BABY BOOMERS OTHERS ARE RACING TO IMPROVE DISTRIBUTION AND GET TO KNOW THEIR READERS BETTER A FEW PUBLISHERS HAVE DECIDED THE BEST APPROACH IS TO TURN OVER THE REINS TO A BIGGER AND BETTERCAPITALIZED PUBLISHING ENTREPRENEUR CONSIDER CHICAGOPARENT TWO MOTHERS LAUNCHED THE CHICAGOAREA MONTHLY ON A KITCHEN TABLE IN 1984 THREE YEARS AGO THEY SOLD IT TO WEDNESDAY JOURNAL INC A LOCAL PUBLISHER OF WEEKLY NEWSPAPERS DAN HALEY WEDNESDAY JOURNAL'S GENERAL MANAGER AND HIS WIFE MARY NOW CHICAGOPARENT'S EDITOR REVAMPED THE MAGAZINE LIKE MANY LOCAL PARENTING PUBLICATIONS IT USED TO RESEMBLE A GLORIFIED SHOPPER DULL GRAYLOOKING WITH A SINGLECOLOR COVER AND CRAMMED WITH ADS THE HALEYS ADDED A FOURCOLOR COVER EXPANDED THE EDITORIAL CONTENT INCREASED THE NUMBER OF PAGES AND SHRANK THE PROPORTION OF SPACE DEVOTED TO ADVERTISING SPACE THE PAYOFF TWO YEARS AGO CHICAGOPARENT WON PARENTING PUBLICATIONS OF AMERICA'S ANNUAL AWARD FOR MOST IMPROVED PUBLICATION EARLIER THIS YEAR IT GOT THE TOP AWARD FOR GENERAL EXCELLENCE IN THE METROPOLITAN TABLOID CATEGORY NATIONAL ADVERTISERS HAVE NOTICED THE MAGAZINE'S CHANGES TOO RT RYBAK A MINNEAPOLIS CONSULTANT FOR DAYTON HUDSON CORP'S TARGET STORES DIVISION SELECTED CHICAGOPARENT AS THE SOLE LOCAL MEDIUM TO ADVERTISE THE RETAILER'S TREAT SEATS PROGRAM IN THE CHICAGO AREA PARTICIPATING CONSUMERS GET FREE DISCOUNT COUPONS FOR LOCAL MUSEUMS ZOOS AND FAMILY EVENTS AS A RESULT OF SUCH STEPS CHICAGOPARENT'S ANNUAL ADVERTISING REVENUE HAS MORE THAN DOUBLED SINCE 1990 TO A PROJECTED 800000 FOR THE FISCAL YEAR ENDING JUNE 30 MR HALEY SAYS OTHER PUBLISHERS ARE TRYING TO WOO MORE ADVERTISERS BY ADDING NEW DISTRIBUTION OUTLETS IN THE PAST THEY MAINLY RELIED ON LOCATIONS FREQUENTED BY MOTHERS SUCH AS DOCTORS' OFFICES DAYCARE CENTERS AND CHILDREN'S CLOTHING SHOPS BUT BY IGNORING OTHER LOCATIONS PUBLISHERS OFTEN HAVE MISSED MANY POTENTIAL READERS THAT'S WHY AMY FOREMAN OWNER OF BATON ROUGE PARENTS' MAGAZINE SAYS SHE STRUCK A DEAL WITH A LOCAL OWNER OF 22 MCDONALD'S CORP FRANCHISES TO DISTRIBUTE HER PUBLICATION YOU WON'T FIND MANY DADS WALKING INTO A PRESCHOOL OR AN OBSTETRICIAN'S OFFICE BUT DAD DOES TAKE THE KIDS TO MCDONALD'S MS FOREMAN SAYS IN EXCHANGE SHE SAYS SHE GIVES EACH MCDONALD'S FRANCHISEE AN ADVERTISING DISCOUNT PUBLISHERS OF LOCAL PARENTING PUBLICATIONS ARE TRYING TO DEVELOP A CLOSER RAPPORT WITH THEIR READERS MINNESOTA PARENT RECENTLY ADDED A FAX LINE TO LET READERS SEND LETTERS TO THE EDITOR 24 HOURS A DAY SAYS PUBLISHER KRISTIN HENNING THE MAGAZINE ALSO INTENDS TO INVOLVE READERS MORE BY FEATURING MORE FIRSTPERSON ACCOUNTS ABOUT PARENTING CHALLENGES TO CEMENT READERSHIP AND ATTRACT MORE ADVERTISERS SOME PUBLISHERS OF LOCAL PARENTING PUBLICATIONS ARE HOLDING PARENTING CONFERENCES FOR THE PAST FIVE YEARS THE BOSTON PARENTS' PAPER HAS HELD A LOCAL ANNUAL FAMILY FORUM THAT USUALLY DRAWS BETWEEN 800 AND 1200 ATTENDEES THE EVENTS HAVE PROVEN SO SUCCESSFUL THAT NATIONAL ADVERTISERS ARE GETTING INTERESTED MCCALL'S MAGAZINE COSPONSORED BOSTON PARENTS' CONFERENCE EARLIER THIS MONTH AND PLANS TO COSPONSOR TWO OTHERS LATER THIS YEAR NANCY WEBER MCCALL'S MARKETING VICE PRESIDENT DESCRIBES THE EVENTS AS A REAL QUALITY NICHE MARKETING VEHICLE FOR US AND OUR ADVERTISERS BUT SOME LOCAL PARENTING PUBLICATIONS HAVE FOUND THAT THERE ARE LIMITS TO IMPROVING THEIR PRODUCT AND STAYING VIABLE GRAND RAPIDS PARENT IN GRAND RAPIDS MICH ENTERED THE MARKET IN 1988 WITH AN EXPENSIVE GLOSSY MAGAZINE AND TRIED SELLING SUBSCRIPTIONS AT 12 A YEAR TO HELP COVER ITS COSTS PUBLISHER JOHN ZWARENSTEYN DISCOVERED THAT READERS WERE CANCELING SUBSCRIPTIONS AT A HIGH RATE COSTS OF LANDING NEW SUBCRIBERS WERE PROHIBITIVE AT LEAST 50 APIECE HE RECALLS IT'S A COMMON PROBLEM IN THIS PUBLISHING NICHE MAGAZINE EXPERTS SAY EVERY YEAR A NEW GROUP OF PARENTS FEELS A SUDDEN NEED FOR INFORMATION TO GUIDE THEM BUT THREE TO FIVE YEARS LATER THEIR DEMAND FOR GUIDANCE DROPS OFF SO IN 1991 MR ZWARENSTEYN DROPPED THE GLOSSY FORMAT AND SWITCHED TO A FREE WEEKLY PRINTED ON CHEAPER PAPER HE SAYS HIS OPERATING MARGIN SUBSEQUENTLY JUMPED TO 50 FROM 10 9303300061 930330 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE MUTUALGAINS BARGAINING WINS MORE BELIEVERS THE NEGOTIATING METHOD ENCOURAGES LABOR AND MANAGEMENT TO ESCHEW RIGID POSITIONS AND INSTEAD EXPLORE MUTUAL INTERESTS FIVE YEARS AGO THERE WERE VERY FEW TAKERS BUT NOW I COULD SPEND EVERY DAY OF THE YEAR TEACHING IT SAYS CORNELL'S BERNARD FLAHERTY WHO RUNS SEMINARS ON THE NONCONFRONTATIONAL BARGAINING APPROACH RECENTLY THE GRAPHIC ARTS EMPLOYERS AND GRAPHIC COMMUNICATIONS INTERNATIONAL UNION ENDORSED THE APPROACH FOR THE US PRINTING INDUSTRY AT HERCULES CORP'S PARLIN NJ PLANT LABORMANAGEMENT TASK FORCES SPENT 10 MONTHS ON FACTFINDING BEFORE NEGOTIATIONS BEGAN BOTH SIDES LATER AGREED TO KEEP ONE OF THE GROUPS WHICH DEALS WITH HEALTHCARE COSTS GOING GRIEVANCES DROPPED SHARPLY AFTER CENTEL CORP NOW PART OF SPRINT CORP ADOPTED THE NEW SYSTEM NYNEX STARTED USING IT AFTER A BITTER STRIKE IN 1989 AND SETTLED ITS NEXT CONTRACT A YEAR EARLY OTHER ADHERENTS INCLUDE THE ELECTRICAL WORKERS UNION THE TENNESSEE VALLEY AUTHORITY AND SEVERAL MAJOR PAPER COMPANIES HOURLY COMPENSATION COSTS FOR MANUFACTURING WORKERS AVERAGED 1546 IN 24 FOREIGN COUNTRIES LAST YEAR OR 96 OF THE 1617 IN THE US THE LABOR DEPARTMENT REPORTS THAT WAS UP FROM 92 IN 1991 US LABOR COSTS GENERALLY HAVE BEEN GROWING LESS THAN THOSE OVERSEAS IN 1975 FOREIGN COMPENSATION COSTS AVERAGED JUST 64 OF THE US LEVEL IN EUROPE LABOR COSTS AVERAGED 2040 LAST YEAR IN JAPAN APPRECIATION OF THE YEN AND REDUCTIONS IN HOURS WORKED SENT COMPENSATION COSTS RISING TO 1616 LAST YEAR MATCHING THE US FOR THE FIRST TIME BUT COMPENSATION COSTS AVERAGED JUST 235 IN MEXICO OR 15 OF THE US LEVEL AND THEY WERE 24 TO 32 OF THE US LEVEL IN HONG KONG KOREA SINGAPORE AND TAIWAN ON YOUR OWN SECRETARIES' JOB STATUS ISN'T LINKED TO THE BOSS ANYMORE AT SEARS ONLY VICE PRESIDENTS AND HIGHER OFFICIALS STILL HAVE PERSONAL SECRETARIES AT LOWER LEVELS TEAMS OF TWO OR THREE ADMINISTRATIVE ASSISTANTS SUPPORT AS MANY AS 15 EXECUTIVES SOUTHLAND CORP MOVES TO BASE SECRETARIES' PAY ON SKILL RATHER THAN MANAGERS' LEVEL A SURVEY BY NE FRIED & ASSOCIATES SHOWS THAT MORE THAN 70 OF EMPLOYERS NOW SET SECRETARIAL PAY ACCORDING TO JOB CONTENT RATHER THAN POSITION UP FROM 44 IN 1988 SOME SECRETARIES SAY THEY HAVE BECOME INTERCHANGEABLE AND THEIR JOBS ARE LESS CHALLENGING OTHERS SEE NEW OPPORTUNITIES SOUTHLAND HAS FLATTENED QUITE A BIT SO WE SEE SECRETARIES TAKING ON MORE RESPONSIBLE ROLES SAYS ELIZABETH MARQUARDT THE COMPANY'S PERSONNEL MANAGER BUT BARBARA OTTO SPOKESWOMAN FOR THE WORKING WOMEN'S GROUP 9 TO 5 SAYS PAY HASN'T KEPT PACE WITH NEW RESPONSIBILITIES PICCADILLY CAFETERIAS INC SAYS PAY REVISION HAS SLOWED BECAUSE IT CAN'T CUT WAGES OF STAFFERS IN THE SECRETARIAL POOL WHO USED TO BE PERSONAL SECRETARIES QUEBEC SEEKS A TWOYEAR WAGE FREEZE FOR GOVERNMENT EMPLOYEES BUT OFFERS BONUSES IN THE SECOND YEAR TO EMPLOYEES OF AGENCIES THAT IMPROVE EFFICIENCY FOR INSTANCE BY REDUCING ABSENTEEISM OR BY TIMING VACATIONS TO MINIMIZE HIRING OF REPLACEMENTS UNIONS COMPLAIN THE POLICY WOULD LEAD TO DISPARITIES IN WORKING CONDITIONS AND THREATEN THE QUALITY OF SERVICES UNIONS SCHEDULE AN APRIL 1 RALLY TO PROTEST BMW'S PLANNED SPARTANBURG SC AUTOASSEMBLY PLANT THE AUTO MAKER WILL PAY ROUGHLY 10 AN HOUR JUST ONETHIRD THE GERMAN RATE THE AFLCIO SAYS THE 17ANHOUR AVERAGE PAID IN DETROIT WOULD BE FAIR OIL AND GAS DRILLING WORKERS HAD INJURY RATES 49 HIGHER THAN THE PRIVATE INDUSTRY AVERAGE SAYS THE LOUISIANA DEPARTMENT OF HEALTH AND HOSPITALS THAT IS STILL LOWER THAN 10 YEARS AGO COMPANIES NOW REALIZE TO MAKE MONEY THEY HAVE TO FOCUS ON SAFETY SAYS DR SCOTT MCNABB OF THE CENTERS FOR DISEASE CONTROL AND PREVENTION COMPANIES GROW SKEPTICAL OF UNIVERSITY EXECUTIVETRAINING PROGRAMS USE OF OUTSIDE EDUCATION PROGRAMS JUST GOT OUT OF HAND SAYS HEWLETTPACKARD CO'S BARBARA BAILL WITH EXECUTIVES ATTENDING MANY VARIED PROGRAMS IT WAS MORE CONFUSING THAN HELPFUL SHE SAYS DEXTER CORP BELIEVES IT GETS MORE BANG FOR THE BUCK FROM ONSITE TRAINING PROGRAMS SAYS HUMANRESOURCES DIRECTOR KEVIN LAKE HILLHAVEN CORP SAYS SENDING EXECUTIVES TO SCHOOL IS TOO COSTLY A PENN STATE SURVEY OF 65 LEADING COMPANIES FINDS THAT ONLY 50 FEEL UNIVERSITIES ARE EFFECTIVE PROVIDERS OF MANAGEMENT DEVELOPMENT DOWN FROM 61 IN 1987 STILL GILLETTE CO TRAINING MANAGER WALTER WELLS SAYS UNIVERSITY PROGRAMS OFFER A DIMENSION WE CAN'T AND HEWLETTPACKARD WHICH HAS LONG EMPHASIZED INTERNAL TRAINING NOW SEEKS A BETTER BALANCE BETWEEN INHOUSE AND EXTERNAL TRAINING PROGRAMS WENDY'S INTERNATIONAL CELEBRATES AN EXECUTIVETRAINING MILESTONE LAST WEEK SENIOR CHAIRMAN AND FOUNDER DAVE THOMAS GOT HIS HIGHSCHOOL DIPLOMA THE CHECKOFF THE AFLCIO'S INDUSTRIAL UNION DEPARTMENT EXPANDS ITS EXECUTIVE COUNCIL TO INCREASE REPRESENTATION OF WOMEN SOME 59 OF SERVICE COMPANIES OFFER HEALTH COVERAGE TO PARTTIMERS COMPARED TO JUST 24 OF MANUFACTURERS ACCORDING TO A SURVEY OF 180 MIDSIZE TO LARGE COMPANIES BY CONSULTANT WILLIAM M MERCER INC 9303300060 930330 BUSINESS BRIEF TOWERS FINANCIAL CORP BANKRUPTCY JUDGE DECIDES A TRUSTEE SHOULD RUN FIRM US BANKRUPTCY JUDGE PRUDENCE B ABRAM HAS SAID A TRUSTEE SHOULD RUN TOWERS FINANCIAL CORP WHILE ITS CHAPTER 11 CASE IS PENDING THE DECISION BY JUDGE ABRAM IN NEW YORK IS A BLOW FOR STEVEN HOFFENBERG CHAIRMAN OF TOWERS TYPICALLY IN A BANKRUPTCYREORGANIZATION PROCEEDING THE CURRENT MANAGEMENT IS ALLOWED TO CONTINUE RUNNING THE BUSINESS WHILE ITS FINANCES ARE SORTED OUT SEVERAL PEOPLE AND THE SECURITIES AND EXCHANGE COMMISSION HAVE ATTACKED MR HOFFENBERG AND HIS MANAGEMENT TEAM AS NOT RESPONSIBLE TO RUN TOWERS A BILLCOLLECTION CONCERN THE TRUSTEE IS SELECTED BY THE OFFICE OF THE US TRUSTEE A BRANCH OF THE DEPARTMENT OF JUSTICE FROM NAMES SUGGESTED BY THE VARIOUS SIDES INVOLVED IN THE CASE THE APPOINTMENT HAS TO BE APPROVED BY JUDGE ABRAM IRA LEE SORKIN AN ATTORNEY FOR TOWERS AND MR HOFFENBERG SAID THEY WILL ASK THE US TRUSTEE TO NAME TURNAROUND SPECIALISTS QUALITY REORGANIZATION MANAGEMENT INC AS THE TRUSTEE IN THE TOWERS CASE 9303300059 930330 CREDIT MARKETS BOND PRICES REBOUND FROM FRIDAY'S BIG LOSSES AS DEMAND REVIVES AFTER TREASURY AUCTIONS BY THOMAS T VOGEL JR AND ABBY SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BOND PRICES REBOUNDED YESTERDAY TO REGISTER SOLID GAINS AFTER SUFFERING CRUSHING LOSSES ON FRIDAY TRADERS SAID THAT THE MARKET HAD RECOVERED FROM A BOUT OF INDIGESTION AFTER CONSUMING A FLOOD OF TREASURY TWOYEAR NOTES AND FIVEYEAR NOTES SOLD DURING AUCTIONS LAST WEEK SOME POINTED TO SLIGHTLY LOWER COMMODITY PRICES AS A SIGN THAT THE INFLATION WORRIES OF THE PAST FEW WEEKS HAVE BEEN EXAGGERATED BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 5/8 POINT OR MORE THAN 625 FOR A BOND WITH A 1000 FACE VALUE TO 102 29/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE FELL TO 689 DOWN FROM 694 ON FRIDAY THE 10YEAR NOTES ROSE MORE THAN 3/8 POINT TO 101 17/32 TO YIELD 603 DOWN FROM 609 ON FRIDAY THE BULLISH MODE IS INTACT SAID MEL J SWANBORN HEAD OF CAPITAL MARKETS AT YAMAICHI INTERNATIONAL AMERICA INC WHAT WE WERE LOOKING AT HERE WAS INDIGESTION AFTER AGGRESSIVE BUYING AT THE TREASURY AUCTIONS LAST WEEK HE SAID IT TOOK UNTIL THIS MORNING TO GET OVER THE AUCTIONS MEANWHILE PRICES FOR SOME ASSETBACKED SECURITIES DROPPED SHARPLY YESTERDAY IN REACTION TO NEWS THAT CITICORP'S CITIBANK UNIT PLANS TO LOWER HIGH CREDITCARD INTEREST RATES FOR ITS BETTER CUSTOMERS BUT ANALYSTS SAY INVESTORS SHOULD NOT WORRY ABOUT FURTHER LARGE DROPS AND STANDARD & POOR'S CORP REPORTED YESTERDAY THAT CORPORATE CREDIT RATING CHANGES WERE OVERWHELMINGLY NEGATIVE DURING THE FIRST QUARTER OF 1993 BUT SAID THE OUTLOOK FOR THE REMAINDER OF THE YEAR WAS STILL POSITIVE A LIGHT TRADING VOLUME MAY HAVE EXAGGERATED YESTERDAY'S PRICE MOVES SAID TRADERS CONTRIBUTING TO THE PRICE GAINS WAS A BUYING RUSH LATE IN THE DAY SPURRED BY TRADERS COVERING SHORT SALES IN A SHORT SALE A TRADER SELLS A BORROWED SECURITY IN THE HOPE OF BUYING IT BACK AT A LATER DATE AT A LOWER PRICE AND POCKETING THE DIFFERENCE BUT LATE YESTERDAY A RUSH TO COVER THESE SHORTS THAT IS BUY BACK THE SECURITIES IN ORDER TO BOOK A PROFIT HELPED TO SPUR A RALLY THE BUYING STARTED IN THE TREASURY FUTURES MARKET AT THE CHICAGO BOARD OF TRADE AND SPILLED OVER INTO THE CASH TREASURY MARKET THE MARKET RALLIED SO QUICKLY THAT SOME REALLY BAD SHORT POSITIONS WERE CAUGHT SAID THOMAS R LYNETT JR MANAGING DIRECTOR OF GOVERNMENT TRADING AT MERRILL LYNCH & CO YOU HAD SOMEONE WHO CAME IN AND BOUGHT THE MARKET AND SET OFF THE BUYING HE SAID OTHER TRADERS SAID THAT A LARGE MUNICIPAL DEFEASANCE DEAL MAY HAVE BEEN THE ORIGINAL SPARK TO THE LATE RALLY IN ORDER TO REFUND DEBT THAT IS NOT YET CALLABLE CITIES AND STATES THAT MAY HAVE RECENTLY DONE BOND OFFERINGS WILL BUY TREASURY SECURITIES WITH MATURITIES COMPARABLE TO THE DEBT THEY ARE REFUNDING AND SET THEM ASIDE UNTIL THEIR OUTSTANDING DEBT IS CALLABLE TRADERS SAID THAT THEY EXPECT A NUMBER OF LARGE DEFEASANCE DEALS TO HIT THE MARKET TODAY INCLUDING ONE FOR NEW YORK CITY ONE OF THE NATION'S LARGEST ISSUERS OF MUNICIPAL DEBT CITY FINANCE OFFICIALS HOWEVER WEREN'T AVAILABLE FOR COMMENT AND COULDN'T CONFIRM IF THERE WERE PLANS AFOOT TO DEFEASE SOME OF ITS DEBT THIS WEEK HOWEVER THE CITY HAS ANNOUNCED A 750 MILLION GENERAL OBLIGATION REFUNDING BOND OFFERING FOR THIS WEEK THE BONDS ARE EXPECTED TO BE PRICED TODAY BY A GROUP OF UNDERWRITERS LED BY MERRILL LYNCH ALSO PROVIDING SOME BUOYANCE TO THE MARKET YESTERDAY WERE HOPES THAT THE FEDERAL RESERVE WOULD ENTER THE OPEN MARKET THIS WEEK TO PURCHASE COUPON SECURITIES THE FED TYPICALLY UNDERTAKES SUCH A MOVE WHICH IS KNOWN AS A PASS THIS TIME OF YEAR AS A MEANS OF ADDRESSING A SEASONAL NEED TO ADD RESERVES TO THE BANKING SYSTEM THE ACTION WOULD HAVE NO MONETARY POLICY SIGNIFICANCE ANALYSTS SAID HOWEVER MOST IN THE BOND MARKETS ARE FOCUSING ON THE MARCH EMPLOYMENT REPORT WHICH IS SCHEDULED TO BE RELEASED ON FRIDAY THE BOND MARKETS HAVE BEEN ON SHAKY GROUND SINCE THE LAST REPORT WHICH SHOWED AN UNANTICIPATED JUMP OF 365000 IN NONFARM PAYROLLS IN FEBRUARY BUT MANY ECONOMISTS SAID THE FEBRUARY DATA OVERSTATED THE TRUE HEALTH OF THE LABOR MARKET AND TRADERS ARE WAITING TO SEE IF THAT PROVES TO BE TRUE THE CONSENSUS AMONG ECONOMISTS IS FOR AN INCREASE OF 100000 IN NONFARM PAYROLLS FOR MARCH YESTERDAY THE TREASURY SOLD 2249 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION UP SLIGHTLY FROM LAST WEEK'S AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 296 FOR A COUPONEQUIVALENT YIELD OF 302 COMPARED WITH 294 AND 300 AT LAST WEEK'S AUCTION THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 304 FOR A COUPONEQUIVALENT YIELD OF 313 COMPARED WITH 305 AND 314 AT LAST WEEK'S AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED APRIL 1 1993 THE 13WEEK BILLS MATURE JULY 1 1993 AND THE 26WEEK BILLS MATURE SEPT 30 1993 CITIBANK'S PLANS TO LOWER THE 198 FIXEDINTEREST RATE PAID BY NINE MILLION CARD HOLDERS TO A FLOATING RATE OF ABOUT 154 UNNERVED THE ASSETBACKED SECURITY MARKET YESTERDAY BUT ANALYSTS SAY IT MAY BE A CASE OF MUCH ADO ABOUT NOTHING YESTERDAY FOR EXAMPLE CITIBANK'S STANDARD CARD TRUST 19903 SECURITIES DROPPED 1/2 POINT TO 110 3/4 TO YIELD 647 UP FROM 635 ON FRIDAY THIS IS BECAUSE SOME INVESTORS IN SECURITIES BACKED BY CREDIT CARDS WORRY THAT LOWER CARD RATES WILL MEAN THEIR INVESTMENTS WILL BE PAID BACK EARLY SUCH AN EARLY PAYOUT WOULD FORCE HOLDERS OF HIGHINTEREST SECURITIES TO REINVEST AT A TIME WHEN INTEREST RATES ARE MUCH LOWER THE BANK HAD ANNOUNCED LAST YEAR THAT IT WOULD GRADUALLY REDUCE RATES SO THE DECISION WASN'T A COMPLETE SURPRISE BUT IT DID PROVIDE EVIDENCE THAT OVER TIME FIXEDRATE YIELDS ARE GOING DOWN EXPLAINED ONE ASSETBACKED TRADER ACCORDING TO TRACY HUDSON AN ASSETBACKED ANALYST AT FIRST BOSTON CORP THE CARD HOLDERS MOST AFFECTED BY THE NEW RATES SOCALLED CONVENIENCE HOLDERS ARE THE ONES LEAST LIKELY TO AFFECT THE ASSETBACKED SECURITIES MARKET THIS IS BECAUSE CONVENIENCE HOLDERS CONTRIBUTE LITTLE TO THE POOLS OF LOANS BACKING MOST ASSETBACKED DEALS CONVENIENCE HOLDERS ARE CONSUMERS WHO PAY THEIR BILLS WHEN THEY ARE DUE AND OWE LITTLE TO NO INTEREST ACCORDING TO MS HUDSON TO QUALIFY FOR THE REDUCED RATES CONSUMERS HAVE TO BE ESTABLISHED MEMBERS WHO HAVE HAD CURRENT UPTODATE ACCOUNTS FOR THE LAST 12 MONTHS IF A CONVENIENCE USER CONVERTS FROM FIXED TO VARIABLE THEN IT'LL HAVE NO IMPACT ON THE ASSETBACKED SECURITIES MARKET MS HUDSON SAYS ANOTHER REASON NOT TO WORRY SAYS MS HUDSON IS A DECLINE IN LOAN LOSSES IN CITIBANK'S CREDIT CARD PORTFOLIO PARTLY BECAUSE OF TIGHTENED UNDERWRITING STANDARDS AS THE NATION EMERGES FROM RECESSION EVEN FEWER CONSUMERS SHOULD DEFAULT SHE SAYS THE TREND SHOULD COUNTER THE NEGATIVE EFFECT OF LOWER RATES SAY ANALYSTS MEANWHILE PRICES OF MANY CURRENT COUPON MORTGAGEBACKED SECURITIES ROSE NEARLY 3/8 POINT YESTERDAY AS DEALERS AND SOME INVESTORS CONTINUED THE BUYING THEY BEGAN LATE LAST WEEK AFTER BECOMING CONVINCED SOME ISSUES HAD BECOME INEXPENSIVE PRICES OF MUNICIPAL BONDS FINISHED NARROWLY MIXED AMONG CLOSELY WATCHED SECONDARY ISSUES THE SAN JOAQUIN HILLS CALIF TRANSPORTATION CORRIDOR AGENCY'S 675 SENIORLIEN TOLL ROAD REVENUE BONDS OF 2032 FINISHED 1/8 FIRMER AT 96 3/4 TO YIELD 697 MORE THAN 15 BILLION OF SECURITIES ARE ON TODAY'S TAXEXEMPT PRICING CALENDAR A FACTOR THAT MAY HAVE HELPED TO KEEP MOST PARTICIPANTS IN THE MUNI MARKET ON THE SIDELINES YESTERDAY NEW YORK CITY'S PLANNED ISSUE OF 750 MILLION OF GENERAL OBLIGATION REFUNDING BONDS WILL INCLUDE BOTH FIXEDRATE BONDS AND DERIVATIVES THE LAST REFUNDING GENERAL OBLIGATION BONDS FOR NEW YORK CITY WERE THE 523 MILLION OF FISCAL 1993 SERIES C BONDS SOLD IN DECEMBER THAT OFFERING INCLUDED FIXEDRATE BONDS THAT WERE GIVEN YIELDS RANGING FROM 300 IN 1993 TO 670 IN 200609 THERE WAS A RARE RESPITE FOR THE PRIMARY MARKET YESTERDAY AND NO LARGE OFFERINGS WERE PRICED SEPARATELY STANDARD & POOR'S CORP SAID ITS MUNICIPAL RATING DOWNGRADES EXCEEDED UPGRADES IN THE FIRST QUARTER OF 1993 BOTH IN TERMS OF DOLLAR VOLUME AND NUMBER OF RATINGS CHANGED BASED ON PRELIMINARY FIGURES RATINGS FOR 52 ISSUES TOTALING 31 BILLION WERE DOWNGRADED COMPARED WITH 42 ISSUES TOTALING 14 BILLION THAT WERE UPGRADED S&P SAID CORPORATE AMERICA'S CREDIT QUALITY CONTINUES TO IMPROVE SOME MONEY MANAGERS SAY ALTHOUGH THE GAINS HAVE NOT TOUCHED ALL SECTORS EQUALLY AND A NUMBER OF LONGERTERM OBSTACLES REMAIN THE REMARKS WERE MADE IN RESPONSE TO A REPORT RELEASED YESTERDAY BY S&P THAT SAID OVERALL CREDIT QUALITY OF US COMPANIES CONTINUES TO IMPROVE DESPITE A STRING OF HIGHPROFILE CREDIT DOWNGRADES IN THE FIRST THREE MONTHS OF 1993 AMONG SECONDARY MARKET ACTIVITY INVESTMENTGRADE ISSUES ROSE 1/8 TO 1/2 POINT IN LIGHT VOLUME WHILE JUNK BONDS FELL 1/8 TO 1/4 THE NEWISSUE MARKET WAS QUIET SOUTHERN INDIANA GAS & ELECTRIC CO OFFERED THE SESSION'S SOLE NEW OFFERING THE S&P REPORT BASED ON PRELIMINARY DATA SAID RATINGS WERE LOWERED ON 2191 BILLION OF DEBT IN THE FIRST QUARTER AND RAISED ON 305 BILLION THERE WERE 130 DOWNGRADES IN THE QUARTER AND 81 UPGRADES S&P SAID BUT S&P SAID THE NATION'S CREDIT HEALTH IS ROSIER THAN THE DATA WOULD APPEAR TO SHOW NEGATIVE RATING ACTIONS ON INTERNATIONAL BUSINESS MACHINES CORP WESTINGHOUSE ELECTRIC CORP GENERAL MOTORS CORP AND SEARS ROEBUCK & CO AND THE RECENT DOWNGRADES OF AMR CORP UAL CORP AND DELTA AIR LINES INC ACCOUNTED FOR MORE THAN 100 BILLION OF THE 1183 BILLION OF INDUSTRIAL DEBT DOWNGRADED S&P SAID EXCLUDING THE IMPACT OF THESE ISSUERS THE OVERALL IMPROVEMENT IN US CORPORATE CREDIT QUALITY REMAINS ON PACE S&P SAID TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9303300058 930330 BUSINESS BRIEF ABBEY HEALTHCARE GROUP INC LIFETIME OUTSIDE DIRECTORS RECEIVE DATA ABOUT OFFER ABBEY HEALTHCARE GROUP INC SENT EACH OF LIFETIME CORP'S FIVE OUTSIDE DIRECTORS AN INFORMATION PACKAGE ABOUT ABBEY'S 2350ASHARE OFFER TO ACQUIRE LIFETIME ABBEY CHAIRMAN TIMOTHY AITKEN SAID LIFETIME'S BOARD HAS ALREADY REJECTED ABBEY'S BID FOR ABOUT 220 MILLION IN CASH AND ABBEY STOCK THE BOARD HAS ONE INSIDE DIRECTOR AND THE FIVE OUTSIDE DIRECTORS ABBEY'S LATEST MOVE APPEARS TO BE AIMED AT REACHING THE OUTSIDE DIRECTORS INDEPENDENTLY OF THE OTHER DIRECTOR WHO IS CHAIRMAN ANTHONY REEVES MR REEVES IS ALSO PRESIDENT AND CHIEF EXECUTIVE BOTH COMPANIES ARE PROVIDERS OF HOME HEALTH CARE ABBEY IS BASED IN COSTA MESA CALIF AND LIFETIME IS BASED IN BOSTON THE INFORMATION PACKAGE HAND DELIVERED TO THE DIRECTORS AT PRIVATE ADDRESSES ON SATURDAY INCLUDED A LETTER FROM MR AITKEN OUTLINING THE BENEFITS OF THE PROPOSED ACQUISITION FINANCIAL HIGHLIGHTS OF THE TWO COMPANIES AND PERSONAL RESUMES OF ABBEY'S SENIOR MANAGERS AMONG OTHER THINGS ABBEY'S SHARES WERE QUOTED YESTERDAY AT 2125 OFF 125 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9303300057 930330 BUSINESS BRIEF MANITOWOC CO ONETIME CHARGES RESULT IN FISCAL THIRDPERIOD LOSS MANITOWOC CO SAID THE COMBINATION OF SEVERAL ONETIME CHARGES WOULD RESULT IN A NET LOSS FOR ITS THIRD QUARTER ENDED MARCH 27 OF BETWEEN 5 MILLION AND 6 MILLION OR 50 CENTS TO 60 CENTS A SHARE IN THE YEAREARLIER QUARTER THE MANITOWOC WIS MAKER OF CRANES ICE MACHINES REFRIGERATORS AND FREEZERS EARNED 323000 OR FOUR CENTS A SHARE ON SALES OF 745 MILLION MANITOWOC SAID IT AGREED TO A 5 MILLION OUTOFCOURT SETTLEMENT RELATED TO A CONSTRUCTION WORKER INJURED IN A 1988 INCIDENT INVOLVING A MANITOWOC CRANE THE SETTLEMENT WILL RESULT IN A 43 MILLION PRETAX CHARGE AGAINST EARNINGS THE COMPANY HAD PREVIOUSLY RESERVED 700000 TO COVER THE SETTLEMENT OF THIS MATTER ALSO THE COMPANY SAID IT WILL POST A CHARGE OF BETWEEN 25 MILLION AND 35 MILLION FOR COSTS TO CLOSE ITS MANITEX MANUFACTURING OPERATIONS IN REYNOSA MEXICO AND MCALLEN TEXAS AND MOVE TO A CONSOLIDATING FACILITY IN GEORGETOWN TEXAS THE COMPANY ALSO SAID IT WILL RECORD A LOSS ON THE DISPOSITION OF INVENTORY THAT WILL EXCEED THE 4 MILLION SECONDQUARTER PRETAX WRITEDOWN RESULTING FROM THE CONTINUING EFFORT TO REDUCE AND IMPROVE THE QUALITY OF INVENTORIES 9303300056 930330 BUSINESS BRIEF NISSAN MOTOR CORP VAN RECALL IS CONSIDERED FOR AN ENGINE FIRE PROBLEM NISSAN MOTOR CORP SAID IT NOTIFIED 33000 OWNERS THAT IT MAY ISSUE A FOURTH RECALL OF ITS 19871990 NISSAN VAN BECAUSE OF A PROBLEM THAT MAY CAUSE ENGINE FIRES NISSAN WHICH CEASED PRODUCTION IN JAPAN OF THE VAN IN 1990 HAS PREVIOUSLY RECALLED THE VEHICLE TO FIX OTHER DEFECTS THAT ALSO RESULTED IN ENGINE FIRES THE POTENTIAL RECALL DOESN'T INVOLVE NISSAN'S NEW QUEST MINIVAN ASSEMBLED AT FORD MOTOR CO'S AVON LAKE OHIO FACILITY A NISSAN SPOKESMAN SAID THE COMPANY WON'T RECALL THE 33000 VEHICLES FOR SEVERAL MONTHS BECAUSE IT HASN'T DETERMINED THE EXACT PROBLEM THE SPOKESMAN SAID NISSAN ISN'T AWARE OF ANY DEATHS OR INJURIES CAUSED BY THE PROBLEM HOWEVER THE JAPANESE AUTO MAKER SAID IT IS ALERTING OWNERS OF THE VAN TO PAY PARTICULAR ATTENTION TO THE TEMPERATURE GAUGE AND WARNING LIGHTS IN THE VEHICLE IF THE SIGNALS INDICATE THE VEHICLE IS OVERHEATING OWNERS SHOULD IMMEDIATELY STOP DRIVING THE VEHICLE TO PREVENT SPARKING AN ENGINE FIRE 9303300055 930330 BUSINESS BRIEF CITY NATIONAL CORP STOCK OFFERING OF 65 MILLION IS PLANNED TO SHORE UP BANK CITY NATIONAL CORP BEVERLY HILLS CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A 65 MILLION OFFERING OF COMMON STOCK THROUGH FIRST BOSTON CORP AND WERTHEIM SCHRODER & CO IN NOVEMBER THE OFFICE OF THE COMPTROLLER OF THE CURRENCY ORDERED THE COMPANY'S CITY NATIONAL BANK UNIT TO GENERATE 65 MILLION IN ADDITIONAL CAPITAL BY JUNE 30 THIS OFFERING WOULD SATISFY THAT REQUIREMENT THE COMPANY SAID ALSO CITY NATIONAL BANK HAS SET ASIDE ABOUT 90 MILLION IN FORECLOSED REAL ESTATE AND ABOUT 31 MILLION IN BAD LOANS FOR ACCELERATED SALE AS A RESULT THE BANK WILL TAKE A SPECIAL PRETAX CHARGE OF 40 MILLION FOR THE FIRST QUARTER ENDING TOMORROW OR ABOUT 26 MILLION AFTER A RELATED TAX BENEFIT OPERATING RESULTS WILL BE ABOUT BREAKEVEN THE COMPANY SAID INVESTORS CHEERED BY THE CUTS IN NONPERFORMING ASSETS PUSHED CITY NATIONAL'S STOCK UP 75 CENTS TO 1075 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9303300054 930330 BUSINESS BRIEF KAISER STEEL RESOURCES INC COMPANY TO BUILD RACETRACK ON SITE OF FORMER STEEL MILL KAISER STEEL RESOURCES INC SAID IT PLANS TO DEVELOP A 360ACRE AUTORACETRACK COMPLEX ON THE SITE OF ITS OLD STEEL MILL IN FONTANA CALIF THE COMPANY BASED IN RANCHO CUCAMONGA CALIF SAID IT SIGNED A LETTER OF INTENT WITH AGAJANIAN PRIME VENTURES A PRIVATE PARTNERSHIP OF AUTORACING PROMOTERS AND DEVELOPERS AS PART OF ITS PLAN TO REDEVELOP THE 1175ACRE FORMER STEELMAKING SITE KAISER SAID IT EXPECTS TO ENTER INTO A LONGTERM LEASE AGREEMENT WITH AGAJANIAN PARTNERS THAT WILL INCLUDE EITHER A MINIMUM RENT BEING PAID TO KAISER BEGINNING IN MID1995 OR A PERCENTAGE OF THE FACILITY'S GROSS REVENUES AGAJANIAN PARTNERS IS EXPECTED TO PROVIDE MOST OF THE MONEY TO DEVELOP AND OPERATE THE RACING FACILITY KAISER SAID DANIEL LARSON KAISER'S PRESIDENT SAID IT WAS TOO EARLY TO SAY WHAT THE BUDGET FOR THE PROJECT WOULD BE THE PARTNERS EXPECT TO TAKE A YEAR TO 18 MONTHS TO DESIGN AND OBTAIN PERMITS FOR THE COMPLEX AND AN ADDITIONAL YEAR TO 18 MONTHS TO BUILD IT 9303300053 930330 ABREAST OF THE MARKET STOCK PRICES CLIMB 1512 POINTS BUT SIGNS OF WEAKNESS ARE SEEN BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES CLIMBED EVEN AS TECHNICAL ANALYSTS FRETTED THAT THE MARKET IS GROWING WEARY THE DOW JONES INDUSTRIAL AVERAGE ROSE 1512 POINTS TO 345510 THANKS TO A RALLY IN THE BOND MARKET THAT SENT INTEREST RATES LOWER STANDARD & POOR'S 500STOCK INDEX ADVANCED 299 POINTS TO 45077 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 141 TO 24848 BUT THE BIGGEST GAINS WERE IN TRANSPORTATION STOCKS THE DOW JONES TRANSPORTATION AVERAGE RALLIED 2296 POINTS OR 148 TO 157430 AS SHARP GAINS IN UAL THE PARENT OF UNITED AIRLINES AND DELTA AIR LINES PUSHED THE INDEX HIGHER VOLUME ON THE BIG BOARD WAS A MODEST 199890000 SHARES DOWN FROM 219130000 SHARES FRIDAY A TOTAL OF 1081 STOCKS ROSE WHILE 808 STOCKS FELL BUT SOME ANALYSTS SUGGESTED THAT SURGING STOCK PRICES MASKED SOME UNDERLYING WEAKNESS IN THE STOCK MARKET ALTHOUGH THE DOW IS ACTING PRETTY WELL THERE ARE THINGS TO BE CONCERNED ABOUT SAID THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER MR GALLAGHER SAID THE BREADTH OF THE MARKET OR THE RATIO OF ADVANCING STOCKS TO DECLINERS IS POOR MOREOVER WHILE BIG STOCKS ROSE SMARTLY SMALL STOCKS ACTUALLY FELL AND VOLUME ON THE BIG BOARD WAS RELATIVELY LIGHT WHEN COMPARED WITH RECENT ACTIVITY THE DROPOFF IN TRADING SHOWS THAT BUYERS ARE DRYING UP AND THERE ISN'T CASH TO SUPPORT THESE LOFTY PRICES SAID MR GALLAGHER STOCKS STARTED THE DAY HIGHER BUOYED BY HIGHER BOND PRICES AND AN EASING OF THE POLITICAL SKIRMISHING IN RUSSIA THOUGH THE DOW INDUSTRIALS BRIEFLY TOUCHED THEIR ALLTIME HIGH OF 347834 STOCKS GAVE BACK THEIR GAINS SOON AFTER AS TRADERS REALIZED THAT THERE WASN'T ENOUGH BUYING POWER TO PUSH PRICES INTO UNCHARTED TERRITORY I DIDN'T SEE ANY REAL BUYING SAID ROBERT KAHAN SENIOR MANAGING DIRECTOR IN CHARGE OF TRADING AT MONTGOMERY SECURITIES MOST OF IT WAS FUTURESRELATED ONE AREA THAT BUYERS WERE SWARMING TO YESTERDAY WAS AIRLINE STOCKS UAL SOARED 2 5/8 TO 124 7/8 ON NEWS THAT USAIR GROUP AGREED TO SELL ITS PHILADELPHIALONDON ROUTE TO UNITED FOR 145 MILLION DELTA MEANWHILE SURGED 2 7/8 TO 54 3/4 AFTER REPORTING THAT IT IS REDUCING ITS FLEET RETIRING JETS AND LAYING OFF 600 PILOTS IN AN EFFORT TO EXPEDITE ITS RETURN TO PROFITABILITY THE MOVES ARE EXPECTED TO SAVE THE COMPANY ABOUT 100 MILLION A YEAR TIMOTHY WEST A TECHNICAL ANALYST AT SG WARBURG SAID HE IS WORRIED THAT TRANSPORTATION AND OIL STOCKS ARE GAINING AT THE SAME TIME GENERALLY GAINS IN OIL STOCKS ARE CONSIDERED BEARISH FOR THE TRANSPORTATION SECTOR BECAUSE IT MEANS COMPANIES SUCH AS AIRLINES WILL HAVE TO PAY MORE FOR FUEL A MOVE IN OIL STOCKS CAN ALSO BE NEGATIVE FOR THE BROADER MARKET A RALLY IN OIL STOCKS MEANS INFLATION IS PICKING UP SAID MR WEST ADDING THAT WHENEVER OIL STOCKS HAVE RALLIED 10 AS THEY HAVE SINCE FEBRUARY STOCKS HAVE PLUNGED BETWEEN 5 AND 20 CHEVRON ROSE 1 1/4 TO 81 3/4 EXXON WAS UP 1 TO 66 1/4 AND TEXACO CLIMBED 5/8 TO 64 FOREST PRODUCT STOCKS WERE HAMMERED AMID FEARS THAT THE CLINTON ADMINISTRATION WILL IMPOSE A BAN ON TIMBER EXPORTS AT A CONFERENCE BETWEEN INDUSTRY AND ENVIRONMENTAL REPRESENTATIVES LATER THIS WEEK WEYERHAEUSER SLUMPED 2 1/2 TO 41 1/4 DONALDSON LUFKIN & JENRETTE LOWERED ITS RATING ON THE COMPANY'S SHARES TO NEUTRAL FROM MODERATELY ATTRACTIVE GEORGIAPACIFIC SKIDDED 1 3/4 TO 60 7/8 GOLDMAN SACHS REMOVED THE STOCK FROM ITS RECOMMENDED LIST INTERNATIONAL PAPER SLIPPED 7/8 TO 63 1/4 AND POTLATCH LOST 1 TO 48 1/2 STANDARD COMMERCIAL JUMPED 7 TO 26 1/2 DIBRELL BROTHERS AND STANDARD COMMERCIAL SAID THEY HAVE AGREED IN PRINCIPLE TO MERGE DIBRELL SHAREHOLDERS WILL OWN ABOUT 60 OF THE MERGED COMPANY AND STANDARD COMMERCIAL SHAREHOLDERS WILL OWN ABOUT 40 DIBRELL STOCK WHICH IS TRADED OVERTHECOUNTER FELL 1 3/4 TO 31 1/2 REICH & TANG LP ROSE 2 TO 18 THE PARTNERSHIP AND NEW ENGLAND INVESTMENT COS A UNIT OF NEW ENGLAND MUTUAL LIFE INSURANCE CO HAVE ENTERED A MERGER AGREEMENT TANDY GAINED 1 3/4 TO 29 1/4 CITING POSITIVE RESTRUCTURING MOVES JANNEY MONTGOMERY SCOTT RAISED ITS INVESTMENT RATING OF THE CONSUMER ELECTRONICS CONCERN TO BUY FROM HOLD QUICK & REILLY ADDED 1 3/8 TO 27 1/4 THE LARGE DISCOUNT BROKER SAID FOURTHQUARTER PROFITS SWELLED TO 111 A SHARE FROM 89 CENTS A SHARE A YEAR EARLIER FIRSTFED FINANCIAL DROPPED AN ADDITIONAL 2 3/8 TO 20 5/8 THE COMPANY'S SHARES LOST 2 1/8 FRIDAY AFTER DISCLOSING THAT ITS FIRSTQUARTER LOAN LOSSES WERE HIGHER THAN ORGINALLY EXPECTED YESTERDAY KEMPER SECURITIES CUT ITS 1993 EARNINGS ESTIMATE FOR FIRSTFED TO 120 A SHARE FROM 240 CITY NATIONAL ROSE 3/4 TO 10 3/4 THE COMPANY SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A 65 MILLION OFFERING OF COMMON STOCK SIZZLER INTERNATIONAL LOST 1 1/8 TO 8 1/2 A SECOND SIZZLER RESTAURANT WAS CLOSED AFTER HEALTH OFFICIALS CONFIRMED THAT TWO PEOPLE WHO ATE THERE CONTRACTED A BACTERIAL INFECTION 9303300052 930330 BUSINESS BRIEF NEWBRIDGE NETWORKS CORP FIRM IS CHOSEN TO PROVIDE GEAR FOR NEW GLOBAL SYSTEM NEWBRIDGE NETWORKS CORP HAS BEEN SELECTED BY A TELECOMMUNICATIONS GROUP TO PROVIDE SOFTWARE AND EQUIPMENT FOR A PLANNED DIGITAL COMMUNICATIONS NETWORK CONNECTING INTERNATIONAL FINANCIAL CENTERS NEWBRIDGE IS BASED IN KANATA ONTARIO THE GROUP ESTABLISHED A YEAR AGO INCLUDES MCI COMMUNICATIONS CORP WASHINGTON DC AND 11 OTHER MAJOR INTERNATIONAL TELECOMMUNICATIONS CONCERNS IN EUROPE ASIA AND NORTH AMERICA THE GROUP INTENDS TO START OPERATING ITS GLOBAL NETWORK IN SEPTEMBER BY LINKING THE EXISTING PRIVATE LINE SWITCHED VOICE AND FACSIMILE FACILITIES OF ITS MEMBER COMPANIES THE SERVICE NAMED TELECONNECT WILL BE AIMED INITIALLY AT BANKS AND OTHER FINANCIAL INSTITUTIONS WITH INTERNATIONAL OPERATIONS BY PROVIDING COMMON STANDARDS FOR INTERNATIONAL FINANCIAL TELECOMMUNICATIONS IT AIMS TO REDUCE THE COST AND COMPLEXITY OF SUCH OPERATIONS YESTERDAY NEWBRIDGE COMMON CLOSED IN NATIONAL TRADING ON THE OVERTHECOUNTER MARKET AT 61625 OFF 1125 ON VOLUME OF MORE THAN ONE MILLION SHARES 9303300051 930330 PEPPERAND SALT LINEAGE RECORD TEXT OF KIN 9303300050 930330 BUSINESS BRIEF FISHERPRICE INC NET LOSS FOR FIRST QUARTER ON SALES DROP IS EXPECTED FISHERPRICE INC SAID IT EXPECTS A LOSS FOR THE FIRST QUARTER ENDING APRIL 4 DUE TO A 15 DECLINE IN SALES THE EAST AURORA NY TOY MAKER SAID THAT IT HAD ANTICIPATED RETAILERS WOULD ATTEMPT TO CONTROL INVENTORIES DURING THE QUARTER BUT THE IMPACT WAS GREATER THAN EXPECTED IN THE YEAREARLIER QUARTER FISHERPRICE REPORTED NET INCOME OF 34 MILLION OR 22 CENTS A SHARE ON REVENUE OF 1468 MILLION FISHERPRICE MADE THE ANNOUNCEMENT AFTER THE MARKET CLOSED IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ITS STOCK WAS QUOTED AT 2350 DOWN 375 CENTS EARLIER THIS MONTH FISHERPRICE'S STOCK FELL SHARPLY WHEN AN ANALYST PREDICTED FIRSTQUARTER EARNINGS WOULD BE ABOUT 14 CENTS A SHARE DOWN FROM HIS PREVIOUS ESTIMATE OF 23 CENTS FISHERPRICE SAID IT REMAINS OPTIMISTIC ABOUT 1993 AND PREDICTED RESULTS FOR THE FULL YEAR WILL BE BETTER THAN 1992 HOWEVER IT SAID SECONDQUARTER RESULTS ARE ALSO LIKELY TO BE HURT BY THE RETAILERS INVENTORY CONTROLS FISHERPRICE SAID IT IS OPTIMISTIC FOR THE FULL YEAR BECAUSE RETAIL SALES OF ITS PRODUCTS ARE RUNNING AHEAD OF LAST YEAR AND TRADE REACTION TO NEW LINES WAS FAVORABLE AT TOY FAIRS 9303300049 930330 BUSINESS BRIEF UNITED INDUSTRIAL CORP AAI UNIT TO TAKE CHARGE OF 147 MILLION IN PERIOD HURT BY CUTS IN PENTAGON SPENDING UNITED INDUSTRIAL CORP SAID ITS MAIN SUBSIDIARY AAI CORP WILL TAKE A RESTRUCTURING CHARGE OF ABOUT 147 MILLION OR 120 A SHARE IN ITS FISCAL FIRST QUARTER THE NEW YORKBASED MILITARY AND TECHNOLOGY SYSTEMS CONCERN SAID THE ONETIME CHARGE WILL COVER EXPECTED COSTS OF CHANGES IN ORGANIZATION AND PRODUCT LINES CONSOLIDATION OF FACILITIES AND WORK FORCE REDUCTIONS OF ABOUT 300 AT AAI AND ITS FOUR UNITS UNITED INDUSTRIAL EARNED 22 MILLION OR 18 CENTS A SHARE FOR ITS FIRST QUARTER ENDED MARCH 31 1992 A MAJOR PORTION OF THE CHARGE RELATES TO THE CLOSING OF OPERATIONS OF AAI/MICROFLITE A MAKER OF FLIGHT SIMULATORS AND TRAINING DEVICES IN BINGHAMTON NY DUE TO THE LACK OF SIGNIFICANT NEW ORDERS AAI'S RESULTS HURT BY FINANCIAL TROUBLES AT DOMESTIC AIRLINES HAVE ALSO BEEN HURT BY A LAWSUIT FILED AGAINST MICROFLITE BY CAELINK CORP A SUBSIDIARY OF TORONTOBASED CAE INDUSTRIES LTD UNITED INDUSTRIAL'S SHARES FELL 50 CENTS TO 875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9303300048 930330 REVIEW & OUTLOOK EDITORIAL ASIDES BACK TO BASICS TODAY'S PLETHORA OF POLLS MAKES IT INCREASINGLY DIFFICULT TO SORT WHAT IS MEANINGFUL OUT OF THE RESULTS THAT'S WHY WE WERE STRUCK BY THE CLEAR RESPONSE TO QUESTIONS IN TWO RECENT SURVEYS THAT ASKED PEOPLE TO MAKE FUNDAMENTAL CHOICES ABOUT THE KIND OF GOVERNMENT THEY WANTED A GALLUP POLL TAKEN FOR CNN AND USA TODAY FOUND ONLY 20 FAVORED HIGHER TAXES AND SERVICES MORE THAN TWICE AS MANY OR 41 WANTED LOWER TAXES AND WERE WILLING TO ACCEPT FEWER SERVICES ABOUT 35 WERE SATISFIED WITH THE STATUS QUO A FABRIZIO/MCLAUGHLIN POLL FOUND THAT 71 OF AMERICANS WANTED TO REDUCE THE DEFICIT BY CUTTING SPENDING AND ONLY 17 WANTED TO INCREASE FEDERAL SPENDING IN AN ATTEMPT TO CREATE JOBS A PALTRY 5 FAVORED RAISING TAXES TO LOWER THE DEFICIT ALL THIS SUGGESTS WHY THE CLINTON ECONOMIC PLAN MAY ENCOUNTER RESISTANCE THE MIX OF NEW TAXES AND PROMISED SPENDING CUTS DOESN'T CONFORM TO WHAT PEOPLE CONSIDER THE GOVERNMENT'S CORE PROBLEMS 9303300047 930330 FOREIGN EXCHANGE DOLLAR SLIPS AGAINST MARK AS TENSIONS IN RUSSIA EASE NEED FOR HAVEN FADES BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE MARKET'S RECENT MALAISE CONTINUED AS INVESTORS SEARCHED FOR SIGNS OF DIRECTION THE DOLLAR ENDED NARROWLY MIXED SLIPPING AGAINST THE MARK AS TENSIONS IN RUSSIA APPEARED TO EASE DEALERS SAID AMONG EUROPEAN CURRENCIES THE FRANC ROSE AFTER CONSERVATIVES CLINCHED THEIR PARLIAMENTARY LANDSLIDE SUNDAY THE LIRA MEANWHILE FELL TO A HISTORIC LOW AGAINST THE MARK AS ITALY'S SPREADING POLITICALCORRUPTION SCANDAL CLAIMED NEW VICTIMS LATE IN NEW YORK THE DOLLAR WAS AT 16263 MARKS DOWN FROM 16335 MARKS LATE FRIDAY THE DOLLAR TRADED AT 11685 YEN UP FROM 11650 YEN STERLING WAS AT 14920 UP FROM 14873 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16280 MARKS AND AT 11675 YEN PEOPLE ARE STILL UNDECIDED AS TO THE NEARTERM DIRECTION OF THE DOLLAR SAID CHARLES SPENCE FOREIGNEXCHANGE MANAGER AT STANDARD CHARTERED BANK OF LOS ANGELES AS A RESULT HE SAID THE MARKET PROBABLY IS AT AN IMPASSE DEALERS TRACED THE DOLLAR'S MODEST DECLINE AGAINST THE MARK TO NEWS THAT PRESIDENT BORIS YELTSIN SURVIVED AN EFFORT SUNDAY TO OUST HIM THE RUSSIAN LEADER'S PROTRACTED BATTLE WITH HARDLINERS IN THE LEGISLATURE HAD DRAWN INVESTORS AWAY FROM THE MARK INTO THE RELATIVE SAFETY OF THE DOLLAR DEALERS SAID YELTSIN LOOKS LIKE HE'S IN THERE TO STAY FOR A WHILE SAID LEE KASSLER A TRADER AT NATIONAL WESTMINSTER USA THAT TOOK A LITTLE PRESSURE OFF THE MARK BUT DEALERS NOTED THAT THE DOLLAR MANAGED TO HOLD ON ABOVE TECHNICAL SUPPORT DESPITE THE MARK'S STRENGTH THE FRANC ADVANCED AS INVESTORS CONTINUED TO BUY FRANCS TO COVER EARLIER BETS THAT A NEW GOVERNMENT MIGHT CUT INTEREST RATES TO STIMULATE THE ECONOMY ALTHOUGH SOME MARKET PARTICIPANTS HAD SPECULATED THE NEW LEADERSHIP MIGHT GIVE UP ITS PREDECESSOR'S STRONGFRANC POLICY DEALERS SAID THAT POSSIBILITY NOW SEEMS REMOTE AS A RESULT THE FRANC IS STEADY THE FACT THAT IT IS A DIFFERENT GOVERNMENT WILL MAKE THE MARKETS A LITTLE BIT NERVOUS SAID MR SPENCE BUT IN LIGHT OF PUBLIC STATEMENTS BY THE NEW LEADERS I THINK THAT THEY WILL BE CAUTIOUS THE LIRA BY CONTRAST IS IN A MUCH WEAKER POSITION DEALERS SAID THE MARK JUMPED TO A RECORD OF 992 LIRE BEYOND THE PREVIOUS RECORD OF 990 LIRE SET FEB 24 DEALERS SAID INTERVENTION YESTERDAY BY THE BANK OF ITALY HELPED KNOCK THE MARK FROM ITS HIGH LATE IN NEW YORK THE MARK WAS QUOTED AT 99231 LIRE UP FROM 97765 LIRE FRIDAY DEALERS SAID THE LIRA IS LIKELY TO FALL IN VALUE TOWARD 1000 PER MARK IN THE COMING DAYS AS SCANDAL ERODES THE VERY FOUNDATION OF THE ITALIAN GOVERNMENT BUT ANDREW HODGE CHIEF CORPORATE TRADER AT BANK BRUSSELS LAMBERT SAID THE LIRA APPEARS UNDERVALUED BASED ON ECONOMIC FUNDAMENTALS I THINK WE'RE IN OVERSHOOT HE SAID BUT HE CONCEDED THAT THE GROWING PARALYSIS WROUGHT BY THE SCANDAL COULD INJURE ITALY'S ALREADYSTRUGGLING ECONOMY AS FOR THE DOLLAR DEALERS SAID THERE'S LITTLE HOPE THE MARKET WILL SOON SHAKE OFF ITS LANGUOR US ECONOMIC DATA HAVEN'T PROVIDED MUCH DIRECTION SO FAR PLAYERS SAID AND THE BUNDESBANK ISN'T EXPECTED TO DROP ITS INTEREST RATES SHARPLY JUST YET 9303300046 930330 FINANCING BUSINESS BATTLE MOUNTAIN GOLD CO BATTLE MOUNTAIN GOLD CO DENVER SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 100 MILLION IN CONVERTIBLE PREFERRED STOCK SALOMON BROTHERS INC AND LEHMAN BROTHERS ARE THE UNDERWRITERS BATTLE MOUNTAIN SAID IT WILL USE THE PROCEEDS FOR WORKING CAPITAL TO REPAY BANK DEBT AND FOR GENERAL CORPORATE PURPOSES POSSIBLY INCLUDING CAPITAL EXPENDITURES AND FUTURE ACQUISITIONS THE MINING COMPANY IS WORKING TO GETS PERMITS FOR A NEW GOLD MINE IN WASHINGTON STATE AND RECENTLY SAID IT WILL SPEND ABOUT 17 MILLION TO EXTEND THE LIFE OF ITS RED DOME GOLD AND COPPER MINE IN AUSTRALIA 9303300045 930330 COMMODITIES RISE OF 4 IN HOG POPULATION IS LIKELY TO END LIVESTOCK PRICE RALLY KEEP LID ON FOOD INFLATION BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE GOVERNMENT'S QUARTERLY HOG CENSUS TOOK THE STEAM OUT OF A LIVESTOCK PRICE RALLY THAT WAS THREATENING TO LIFT CONSUMER FOOD PRICES IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE HOG CONTRACT FOR APRIL DELIVERY SANK 13 CENTS A POUND TO SETTLE AT 493 CENTS A POUND YESTERDAY WAS THE FIRST SESSION THAT LIVESTOCK TRADERS COULD REACT TO A MARCH 1 SURVEY BY THE AGRICULTURE DEPARTMENT THAT WAS RELEASED LATE FRIDAY THE DEPARTMENT PEGGED THE NATION'S HOG POPULATION AT 583 MILLION HEAD UP 4 FROM THE SAME 1992 DATE A SHARP RISE IN HOG PRICES SO FAR THIS YEAR HAD MANY ECONOMISTS PONDERING WHETHER TO SCUTTLE THEIR FORECASTS FOR MODEST FOOD INFLATION HOG PRICES IN IOWA SOUTHERN MINNESOTA AND NEBRASKA LAST WEEK WERE ABOUT 20 HIGHER THAN IN MARCH 1992 PORK IS A MAJOR COMPONENT OF THE RED MEAT SECTOR WHICH REPRESENTS ONEFIFTH OF THE GOVERNMENT'S CONSUMER PRICE INDEX FOR FOOD AT HOME BUT A 4 RISE IN THE HOG POPULATION IS PROBABLY ENOUGH TO END THE HOG RALLY AND KEEP A LID ON FOOD INFLATION SAID PAUL PRENTICE PRESIDENT OF FARM SECTOR ECONOMICS INC IN COLORADO SPRINGS COLO BECAUSE OF THE GOVERNMENT REPORT MR PRENTICE IS STICKING WITH HIS FORECAST FOR US FOOD PRICES TO RISE 24 THIS YEAR COMPARED WITH THE 16 FOOD INFLATION RATE FOR 1992 HOG PRICES TOOK OFF EARLY THIS YEAR WHEN AN UNEXPECTED DECLINE IN THE HOG SLAUGHTER PROMPTED SPECULATION THAT THE AGRICULTURE DEPARTMENT'S DEC 1 CENSUS HAD OVERESTIMATED THE SIZE OF THE HOG POPULATION THE DEPARTMENT FRIDAY REVISED DOWNWARD ITS DECEMBER COUNT BY ABOUT 500000 HOGS SOME LIVESTOCK ANALYSTS YESTERDAY SAID THE DROP IN THE SUPPLY OF MATURE HOGS WAS CAUSED IN PART BY A COMBINATION OF AN UNUSUALLY SNOWY WINTER IN THE MIDWEST AND A POORQUALITY CORN CROP AN UNUSUALLY RAINY SUMMER LAST YEAR TRIMMED THE NUTRIENT VALUE OF THE CORN CROP WHICH IS A MAJOR PART OF THE HOG DIET OTHER ANALYSTS CREDIT AT LEAST SOME OF THE PRICE RALLY TO REBOUNDING CONSUMER TASTE FOR PORK AS WELL AS THE STRENGTHENING ECONOMY IF THE AGRICULTURE DEPARTMENT'S LATEST CENSUS IS ACCURATE US PORK PRODUCTION SHOULD BEGIN CLIMBING ABOVE LAST YEAR'S PACE AS EARLY AS THIS WEEK BRAD KATZ AN ANALYST AT NASHVILLE TENNBASED JC BRADFORD & CO SAID HE EXPECTS MEATPACKERS TO SLAUGHTER ABOUT 82 MILLION HOGS IN APRIL WHICH WOULD BE ABOUT 5 ABOVE APRIL 1992 IF THE TIGHT HOG SUPPLY EASES CASH HOG PRICES IN THE ST LOUIS MARKET DURING THE SECOND QUARTER PROBABLY WILL AVERAGE ABOUT 44 CENTS A POUND AND RANGE BETWEEN 40 AND 50 CENTS A POUND MR KATZ SAID SUCH A PRICE RANGE WOULD STILL GENERATE A PROFIT FOR MOST FARMERS WHICH AS A GROUP SOLD THEIR HOGS AT CLOSE TO BREAKEVEN PRICES DURING MUCH OF 1992 ACCORDING TO ECONOMISTS HIGHER PORK PRODUCTION WOULD TEND TO PUT COMPETITIVE PRESSURE ON CATTLE PRICES WHICH ALSO SOARED IN THE WINTER AMID UNUSUALLY ROUGH WEATHER IN THE MAJOR RANCH STATES ON THE GREAT PLAINS IN OTHER COMMODITY MARKETS PRECIOUS METALS YESTERDAY'S BROADBASED STOCK MARKET RALLY HELPED BOOST FUTURES PRICES OF THE WHITE PRECIOUS METALS SILVER PLATINUM AND PALLADIUM BUT GOLD PRICES RETREATED SLIGHTLY ON MODERATE SELLING BY PRODUCERS ON NEW YORK'S COMMODITY EXCHANGE GOLD SHED 30 CENTS TO SETTLE AT 33220 AN OUNCE FOR APRIL DELIVERY WHITE PRECIOUS METALS HAVE BROAD INDUSTRIAL APPLICATION AND HENCE TEND TO BENEFIT FROM SIGNS OF RENEWED CONFIDENCE IN THE OVERALL ECONOMY SUCH AS A STOCK MARKET RALLY GOLD VIEWED PRIMARILY AS AN INFLATION HEDGE HAS A MORE LIMITED INDUSTRIAL APPLICATION ON THE COMEX SILVER FOR MAY DELIVERY JUMPED 21 CENTS TO 3753 AN OUNCE SILVER HAS EXHIBITED A FIRMER TONE SINCE FRIDAY WHEN A REPORT BY THE PERUVIAN GOVERNMENT INDICATED THAT THE COUNTRY'S TOTAL SILVER OUTPUT FELL SOME 11 LAST YEAR ON THE NEW YORK MERCANTILE EXCHANGE THE ACTIVELY TRADED APRIL CONTRACT IN PLATINUM ROSE 180 TO 35860 AN OUNCE WHILE THE JUNE PALLADIUM CONTRACT JUMPED 175 TO 110 AN OUNCE TRADERS SAID CONTINUED POLITICAL TENSIONS IN MOSCOW WERE ALSO UNDERGIRDING PALLADIUM AND PLATINUM PRICES RUSSIA IS A LEADING PRODUCER OF THE TWO METALS WHICH ARE BYPRODUCTS OF NICKEL ORANGE JUICE FUTURES PRICES OF FROZEN CONCENTRATED ORANGE JUICE CLIMBED 190 CENTS TO 8605 CENTS A POUND EXTENDING A RECENT RALLY IN THE ACTIVE MAY CONTRACT AT THE NEW YORK COTTON EXCHANGE A REPORT INDICATING THAT FLORIDA'S CROP EMERGED INTACT FROM RECENT STORMS CAME TOO LATE TO AFFECT PRICES DEALERS SAID THE MARKET IS STILL DRIFTING BETWEEN 82 TO 88 CENTS A POUND FOR THE MAY CONTRACT SAID SANDRA KAUL AN ANALYST WITH SHEARSON LEHMAN BROTHERS THERE'S BEEN SOME PICK UP IN DEMAND FOR CHILLED JUICE AND THAT SHOULD SOON TRANSLATE TO INCREASED DEMAND FOR FROZEN CONCENTRATED JUICE TRADED IN THE INTERNATIONAL FUTURES MARKETS SHE SAID COPPER COPPER FUTURES PRICES STEADIED YESTERDAY AFTER FRIDAY'S SHARP 160 CENTSAPOUND FALL ON THE COMEX COPPER FOR MAY DELIVERY SLIPPED 015 CENT TO 959 CENTS A POUND CONCERNS ABOUT WEAK ECONOMIES IN EUROPE AND JAPAN HAVE SENT COPPER PRICES STEADILY LOWER THERE'S NO REAL SUPPORT FROM EUROPE OR FAR EASTERN MARKETS WHATSOEVER SAID RICHARD HIRSCH A METALS BROKER WITH SHARPS PIXLEY INC THE RELATIVELY STRONGER NORTH AMERICAN MARKET IS UNABLE TO HOLD PRICES UP ON ITS OWN MR HIRSCH ADDED THE MAY CONTRACT HAD SPIKED UP TO 99 CENTS A POUND ON CONCERN ABOUT A POSSIBLE CHILEAN LABOR STRIKE EARLIER THIS MONTH WITH THAT CONCERN NOW REMOVED PRICES COULD HEAD AS LOW AS 94 CENTS A POUND HE PREDICTED 9303300044 930330 ARKLA SETS CREDIT ACCORD SHREVEPORT LA ARKLA INC SAID IT COMPLETED A 400 MILLION REVOLVING CREDIT AGREEMENT WITH A GROUP OF 17 BANKS LED BY CITIBANK BANK OF MONTREAL AND NATIONSBANK THE AGREEMENT WHICH EXTENDS TO JUNE 30 1995 REPLACES ARKLA'S EXISTING CREDIT AGREEMENT WHICH HAD BEEN DUE TO EXPIRE APRIL 30 ARKLA A NATURAL GAS DISTRIBUTION COMPANY CURRENTLY HASN'T ANY BORROWINGS UNDER ITS BANK AGREEMENT 9303300043 930330 PRECISION CASTPARTS BUYBACK PORTLAND ORE PRECISION CASTPARTS CORP SAID IT HAS REPURCHASED 49 MILLION OF ITS SHARES IN A SELFTENDER OFFER AT 2350 A SHARE WITH THE PURCHASE PRECISION CASTPARTS A MAKER OF JET ENGINE PARTS WILL HAVE 13 MILLION SHARES OF COMMON STOCK OUTSTANDING 9303300042 930330 DIGITAL EQUIPMENT CONTRACT MAYNARD MASS DIGITAL EQUIPMENT CORP SAID THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AWARDED IT A CONTRACT FOR GENERALPURPOSE WORKSTATIONS THAT COULD BE WORTH 96 MILLION OVER FIVE YEARS DIGITAL SAID IT EXPECTS TO SUPPLY WORKSTATIONS BASED ON ITS NEW ALPHA MICROPROCESSOR AS WELL AS DEC STATION 5000 SYSTEMS 9303300041 930330 REVIEW & OUTLOOK EDITORIAL THEY'RE INTERESTED EVERYONE HAS HEARD THE INCESSANT CHATTER OUT OF THE CLINTON ADMINISTRATION ABOUT HOW THE SPECIAL INTERESTS ARE OUT TO CAPTURE AND UNDERMINE ALL THAT'S GOOD IN AMERICA THIS CONVEYS OF COURSE THAT THE ADMINISTRATION OPERATES IN A CONSTANT STATE OF MONKISH RESISTANCE TO THESE TEMPTINGS WELL THEN HERE'S A SMALL WASHINGTON MORALITY TALE LAST WEEK AGRICULTURAL GIANT ARCHERDANIELSMIDLAND INC THOUGHT IT HAD HIT THE JACKPOT WHEN IT SWEETTALKED THE CLINTON WHITE HOUSE INTO EXEMPTING ETHANOL A CORNDERIVED ALCOHOL FUEL MADE FROM THE PROPOSED ENERGY TAX THEN ASTONISHINGLY THE SENATE VOTED 52 TO 48 AGAINST THE EXEMPTION THE FIRST TIME IN MEMORY ADM HAS LOST ON THE HILL IT'S JUST POSSIBLE THAT CONGRESS MAY BE BREAKING FREE OF A SPECIAL INTEREST'S TEMPTINGS JUST AS THE CLINTON FOLKS ARE GIVING IN THE ETHANOL INDUSTRY IS DOMINATED BY ADM WHOSE THREE MAIN BUSINESSES ALCOHOLBASED ETHANOL CORN SWEETENERS AND SOYBEAN PRODUCTS ALL DEPEND HEAVILY ON GOVERNMENT SUBSIDIES ITS ETHANOL BUSINESS IS KEPT RUNNING BY FREE SURPLUS CORN AND TAX SUBSIDIES THAT ADD UP TO MORE THAN THE WHOLESALE PRICE OF OTHER FUELS ADM IS AN UNUSUAL COMPANY ITS TV COMMERCIALS ON SUNDAY POLITICAL TALK SHOWS AREN'T DIRECTED AT CONSUMERS SO MUCH AS THEY ARE AT THE MEMBERS OF CONGRESS WHO WATCH THEM AS SOON AS BILL CLINTON PROPOSED HIS ENERGY TAX ADM'S CHAIRMAN DWAYNE ANDREAS BEGAN ANGLING TO GET AROUND IT THOUGH BOTH ENVIRONMENTAL GROUPS AND THE OIL INDUSTRY OPPOSED ANY ETHANOL EXEMPTION ADM PERSUADED TREASURY SECRETARY LLOYD BENTSEN TO GO ALONG IT THEN ASSEMBLED AN UNHOLY PROETHANOL ALLIANCE BY PERSUADING CORNSTATE SENATORS SUCH AS BOB DOLE TO VOTE TO EXEMPT HOME HEATING OIL FROM THE ENERGY TAX IN A CLASSIC LOGROLLING EXERCISE NEW ENGLAND SENATORS SUCH AS TED KENNEDY AND CHRIS DODD THEN AGREED TO EXEMPT ETHANOL BUT THIS TIME ADM'S PLOY DIDN'T WORK SEVERAL SENATORS ARGUED THAT IF ALL FORMS OF ENERGY WEREN'T TAXED THE ENTIRE ENERGY TAX SHOULD BE SCRAPPED DEMOCRATIC SENATOR BILL BRADLEY CHIDED HIS COLLEAGUES FOR BACKING ETHANOL WHEN IT'S BEEN PROVED THAT IT INCREASES CARBON MONOXIDE EMISSIONS REPUBLICANS HOOTED AT CLAIMS BY THE CLINTON TREASURY THAT ITS PROGRAM WAS BEING FOUGHT BY SPECIAL INTERESTS THE SPECIAL INTERESTS ARE DICTATING TO THE CLINTON WHITE HOUSE WHAT'S IN THIS BILL SAID SENATOR MALCOLM WALLOP MR ANDREAS AND ADM ARE LEGENDARY FOR BEING ABLE TO GIVE DICTATION TO POLS WHO'VE ACCEPTED ADMRELATED CONTRIBUTIONS INDEED MR ANDREAS'S ZEST FOR DISPENSING POLITICAL CASH HAS SOMETIMES LANDED HIM IN TROUBLE IT WAS HIS SECRET CASH CONTRIBUTIONS TO THE 1972 NIXON CAMPAIGN THAT LATER TURNED UP BEING USED BY THE WATERGATE BURGLARS THIS MONTH HE AND HIS WIFE DOROTHY AGREED TO PAY AN 8000 CIVIL FINE FOR VIOLATING A FEDERAL LAW THAT PROHIBITS CONTRIBUTIONS OF MORE THAN 25000 A YEAR TO CANDIDATES MR ANDREAS'S INFLUENCE ON CAPITOL HILL IS DECRIED EVEN BY MANY FARMERS THE PIGGISHNESS OF ADM HAS CAUSED A MAJOR POLITICAL PROBLEM FOR THE WHOLE CORN INDUSTRY SAYS JOHN FORD OF THE AMERICAN CORN GROWERS ASSOCIATION IT'S OBVIOUSLY NOW PERCEIVED AS A PROBLEM EVEN BY SOME IN THE PORKHAPPY CONGRESS THAT'S WHY IT'S SO DISTURBING TO SEE HOW QUICKLY THE CLINTON WHITE HOUSE INVITED AN ALREADY WELLFED ADM TO PIG OUT AGAIN AT THE PUBLIC TROUGH IF THE CLINTON FOLKS CAN'T SAY NO TO AN EGREGIOUS SPECIAL INTEREST LIKE ADM WHOM WILL THEY STAND UP TO 9303300040 930330 SHIFT SEEN IN JUSTICE DEPARTMENT PLAN FOR QUICK CHANGEOVER OF US ATTORNEYS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT HAS APPARENTLY BACKED OFF ITS DECISION TO HAVE REPUBLICANAPPOINTED US ATTORNEYS LEAVE OFFICE IMMEDIATELY CLINTON ADMINISTRATION OFFICIALS INSIST THEY NEVER SET A DEADLINE FOR THE DISMISSALS THE OFFICIALS ALSO HAVE DENIED COMMENTS BY JAY STEPHENS US ATTORNEY FOR THE DISTRICT OF COLUMBIA THAT HE WAS TOLD TO LEAVE OFFICE BY APRIL 2 MR STEPHENS IS INVESTIGATING ALLEGATIONS THAT REP DAN ROSTENKOWSKI D ILL CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE MISUSED PUBLIC FUNDS FOR PERSONAL PURPOSES AT THE SAME TIME TWO OF THE THREE US ATTORNEYS WHOSE RESIGNATIONS HAVE BEEN ACCEPTED SAY THEY WERE SPECIFICALLY TOLD THEY WOULD HAVE TO LEAVE OFFICE IMMEDIATELY IT WAS MADE REAL CLEAR TO ME THAT THEY WANTED US OUT IMMEDIATELY SAID RICHARD CULLEN WHO WAS US ATTORNEY FOR THE EASTERN DISTRICT OF VIRGINIA IMMEDIATELY WAS DEFINED LITERALLY STEPHEN EASTON WHO WAS US ATTORNEY FOR NORTH DAKOTA SAID HE WAS TOLD WE WOULD BE OUT BY FRIDAY OR MONDAY YESTERDAY THE RESIGNATIONS OF MR CULLEN AND MR EASTON WERE EFFECTIVE YESTERDAY THE OTHER RESIGNATION THAT HAS SO FAR BEEN ACCEPTED WAS SUBMITTED BY MIKE MCKAY OF WASHINGTON STATE HE SAID HE SUBMITTED HIS LETTER OF RESIGNATION TO PRESIDENT CLINTON ON MARCH 1 WELL BEFORE THE MARCH 23 PRESS CONFERENCE WHERE ATTORNEY GENERAL JANET RENO ANNOUNCED THAT ALL US ATTORNEYS HAD BEEN ASKED TO RESIGN MR MCKAY'S REQUEST THAT HIS RESIGNATION BE EFFECTIVE APRIL 23 WAS ACCEPTED WHILE HE WILL REMAIN IN OFFICE UNTIL THEN HE SAID THERE WAS A GENERAL UNDERSTANDING AMONG US ATTORNEYS THAT THEY WOULD BE REPLACED AT ONCE MESSRS STEPHENS CULLEN AND EASTON SAID THEY WERE TOLD DURING TELEPHONE CONVERSATIONS WITH JUSTICE DEPARTMENT OFFICIALS IN WASHINGTON THAT THEY WOULD HAVE TO LEAVE OFFICE IMMEDIATELY THE OFFICIALS WERE IDENTIFIED AS TONY MASCATO DIRECTOR OF THE EXECUTIVE OFFICE OF US ATTORNEYS AND TOM CORBITT CHAIRMAN OF THE ADVISORY COMMITTEE OF US ATTORNEYS CAROLINE ARONOVITZ A JUSTICE DEPARTMENT SPOKESWOMAN SAID IT WAS NEVER THE DEPARTMENT'S INTENTION TO REMOVE THE US ATTORNEYS HASTILY ALL I CAN SAY IS THAT'S NOT THE CASE SHE SAID MS ARONOVITZ SAID DECISIONS ON THE RESIGNATIONS WILL BE MADE INDIVIDUALLY ON A CASE BY CASE BASIS DEPENDING ON A LOT OF VARIABLES MR ROSTENKOWSKI HAS BEEN THE SUBJECT OF A YEARLONG INVESTIGATION INTO ALLEGATIONS OF IMPROPER HOUSE POST OFFICE TRANSACTIONS AND MISUSE OF PUBLIC FUNDS A FEDERAL GRAND JURY HAS SUBPOENAED FINANCIAL RECORDS OF THE ILLINOIS DEMOCRAT WHO HAS STRONGLY DENIED ANY WRONGDOING REPS AUSTIN MURPHY AND JOSEPH KOLTER PENNSYLVANIA DEMOCRATS ALSO HAVE BEEN INVESTIGATED AND HAVE DENIED ANY WRONGDOING THE POSSIBLE TERMINATION OF MR STEPHENS GENERATED CONTROVERSY BECAUSE OF MR ROSTENKOWSKI'S PARTICULARLY POWERFUL POSITION IN CONGRESS AS CHAIRMAN OF THE WAYS AND MEANS COMMITTEE HE IS IN A CRUCIAL SPOT TO SHEPHERD PRESIDENT CLINTON'S ECONOMIC PROGRAM THROUGH THE LEGISLATIVE PROCESS MS RENO SAID LAST WEEK THAT HER CALL FOR THE RESIGNATIONS OF ALL 93 US ATTORNEYS HAD NO LINKAGE WHATSOEVER WITH MR STEPHENS'S PROBE 9303300039 930330 BUSINESS BRIEF SIZZLER INTERNATIONAL INC ANOTHER RESTAURANT CLOSES OVER THE E COLI BACTERIA A SIZZLER RESTAURANT IN NORTH BEND ORE WAS CLOSED AFTER TWO PEOPLE WHO ATE THERE CONTRACTED THE E COLI BACTERIA THE ACTION FOLLOWS THE CLOSURE LAST WEEK OF ANOTHER SIZZLER RESTAURANT IN NEARBY GRANTS PASS AFTER FIVE PEOPLE WHO ATE THERE IN MIDMARCH WERE FOUND TO BE INFECTED SIZZLER INTERNATIONAL INC BASED IN LOS ANGELES SAID IT HASN'T RECEIVED ANY REPORTS OF SIMILAR INSTANCES FROM LOCAL HEALTH AUTHORITIES ANYWHERE ELSE IN THE COUNTRY SIZZLER OFFICIALS FOOD TECHNICIANS AND MICROBIOLOGISTS LED BY SIZZLER'S PRESIDENT AND CHIEF EXECUTIVE OFFICER DICK BERMINGHAM SPENT THE WEEKEND WORKING WITH LOCAL HEALTH OFFICIALS TO TRY TO FIND THE SOURCE OF THE PROBLEM THE COMPANY SAID THAT SINCE THE TWO RESTAURANTS HAVE ALMOST IDENTICAL MENUS COMMON SUPPLIERS ARE BEING REVIEWED AS A POSSIBLE SOURCE SIZZLER SAID THE RESTAURANTS WILL REMAIN CLOSED UNTIL INVESTIGATIONS BY IT AND LOCAL HEALTH OFFICIALS ARE COMPLETE EARLIER THIS YEAR MORE THAN 400 PEOPLE BECAME SICK AND AT LEAST TWO CHILDREN DIED IN AN E COLI OUTBREAK LINKED TO TAINTED HAMBURGER MEAT AT FOODMAKER INC FAST FOOD RESTAURANTS IN THE PACIFIC NORTHWEST 9303300038 930330 LEISURE & ARTS ON SPORTS TARHEELS BOUNCE INTO THE FINAL FOUR AGAIN BY FREDERICK C KLEIN EAST RUTHERFORD NJ THE UNIVERSITY OF NORTH CAROLINA'S BASKETBALL TEAM HAD DEFEATED THE UNIVERSITY OF CINCINNATI'S IN THE EASTERN REGIONAL FINAL OF THE NCAA TOURNAMENT IN THE MEADOWLANDS ARENA HERE SUNDAY AFTERNOON AND WHILE THE VICTORIOUS TARHEELS SEEMED PLEASED WITH THAT OUTCOME THEY DEPARTED THE PREMISES WITHOUT MOLESTING THE BASKET NETS THE REASON GIVEN FOR THIS SNUB OF TRADITION SEEMED STRAIGHTFORWARD ENOUGH AT THE START OF THE SEASON WE AGREED TO WAIT UNTIL NEW ORLEANS SITE OF THE COMING FINAL FOUR BEFORE WE DID ANY NET CUTTING SAID GEORGE LYNCH THE WINNERS' 6FOOT8 SENIOR FORWARD THAT WAS THE GOAL WE'D SET A PLAUSIBLE ALTERNATIVE EXPLANATION THOUGH WAS THAT WHEN YOU GO TO SCHOOL IN CHAPEL HILL YOU'D BETTER BE CAREFUL WHAT YOU BRING HOME BECAUSE THERE MIGHT NOT BE ROOM FOR IT IN THE TROPHY CASE THIS IS A SCHOOL THAT WAS SENDING TEAMS TO THE FINAL FOUR BEFORE IT HAD A NAME AND NOW WILL HAVE BEEN THERE NINE TIMES DURING THE 32SEASON COACHING REGIME OF DEAN SMITH THE MAN FOR WHOM THEIR GYM IS NAMED DID MUHAMMAD ALI KEEP THE GLOVES HE WORE WHEN HE BEAT GEORGE CHUVALO OK THAT COMPARISON IS UNFAIR TO CINCINNATI THE SCRAPPY BEARCATS NOT ONLY COMPORTED THEMSELVES WELL ON SUNDAY BUT ALSO FORCED THE GAME INTO OVERTIME BEFORE BOWING 7568 WITH SENIOR GUARD NICK VAN EXEL SHOOTING EXCELLENTLY FROM THREEPOINT LAND CINCY LED 2914 WITH 13 MINUTES GONE IN THE FIRST HALF AND SCORED THE LAST FOUR POINTS OF REGULATION PLAY TO TIE THINGS AT 66 AND FORCE THE EXTRA PERIOD BUT WE'RE TALKING CAROLINA HERE THE FORMER HOME OF MICHAEL JORDAN JAMES WORTHY BOB MCADOO AND BILLY CUNNINGHAM A PLACE WHOSE BASKETBALL REPRESENTATIVES HAVE WON AT LEAST 20 GAMES FOR 23 CONSECUTIVE SEASONS AND WHOSE COOKIECUTTER COMPETENCE EARNED THEM THE NICKNAME OF COLLEGE HOOPS' IBM UNTIL THAT OUTFIT LET THEM DOWN ASKED AFTER THE GAME TO COMPARE THIS CREW WITH SOME OF HIS PREVIOUS ONES SMITH DECLINED ON GROUNDS THAT IT MIGHT NOT BE FAIR TO SOME OF MY OTHER TEAMS CHANCES ARE THOUGH THAT HE MIGHT NOT HAVE BEEN ABLE TO BRING THEM ALL TO MIND ON SUCH SHORT NOTICE CERTAINLY CAROLINA'S REP WAS ON THE MIND OF BOB HUGGINS THE CINCINNATI COACH NOTING BEFORE THE GAME THAT HIS SCHOOL'S BASKETBALL TROPHY CABINET WASN'T EXACTLY BARE ITS TWO NATIONAL CROWNS IN 1961 AND '62 MATCH UNC'S TOTAL AND THE BEARCATS WERE A FINAL FOURIST LAST YEAR HUGGINS NONETHELESS FELT OBLIGED TO TELL THE WORLD AND MAYBE HIS OWN PLAYERS THAT THE HEELS STRAP IT ON LIKE EVERYONE ELSE A LOT OF TIMES THE DIFFERENCE BETWEEN TWO TEAMS IS WHAT'S ON THE FRONT OF THEIR JERSIES HE DECLARED IT'S ALL A STATE OF MIND IN FACT THOUGH THE HEELS DO POSSESS A COUPLE OF MORE TANGIBLE ASSETS IN GREATER ABUNDANCE THAN THE BEARCATS OR ALMOST EVERYONE ELSE AND THESE ULTIMATELY MADE THE DIFFERENCE ON SUNDAY ONE OF THEM IS HEIGHT ALWAYS A BASKETBALL PLUS AS A SAGE ONCE PUT IT AT THE END OF A GAME THE FAST GUYS AREN'T ALWAYS FAST BUT THE TALL GUYS STILL ARE TALL THE BIGGEST OF THE TALL GUYS IS ERIC MONTROSS WHO AT SEVEN FEET AND 270 POUNDS IS CAROLINA'S FULLSEASON SCORING LEADER HE'S SO LARGE THAT NOBODY ASKS HIM THE SPORTSWRITER'S QUINTESSENTIAL DUMB QUESTION IF YOU WERE A TREE WHAT KIND OF A TREE WOULD YOU BE BECAUSE THE ANSWER MIGHT HAVE TO BE TAKEN SERIOUSLY MONTROSS GETS MORE THAN A LITTLE HELP AROUND THE BASKET FROM LYNCH ANOTHER MUSCULAR SORT AND RESERVE KEVIN SALVADORI ANOTHER SEVENFOOTER SALVADORI EXEMPLIFIES CAROLINA'S EDGE NO 2 WHICH IS DEPTH THIS IS A TEAM THAT DOESN'T SO MUCH RECRUIT AS SELECT AND ITS BENCH INCLUDES THE LIKES OF 6FOOT8 HENRIK RODL A MEMBER OF THE GERMAN TEAM AT LAST SUMMER'S OLYMPICS AS YOU MIGHT HAVE NOTICED THE HEELS' HEIGHT AND DEPTH GO TOGETHER CINCINNATI DID WE RAN OUT OF PEOPLE THEY JUST WORE US DOWN SAID HUGGINS AFTER THE FRAY THEY HAVE WHAT EIGHT SEVENFOOTERS SAID THE BEARCATS' 6FOOT6 ERIK MARTIN HE WAS CINCY'S TALLEST MAN ON THE FLOOR AFTER CORIE BLOUNT AT 610 THEIR LONE TRUE BIG MAN WAS BENCHED FOR MUCH OF THE SECOND HALF AFTER PICKING UP HIS FOURTH FOUL SEVEN MINUTES INTO THE PERIOD FOR ALL THAT THOUGH CINCINNATI CAME WITHIN A WHIFF OF A WIN SUNDAY AND MOSTLY BECAUSE OF ITS SMALLEST GUY THE 61 VAN EXEL PLAYING 44 OF THE GAME'S 45 MINUTES AND HANDLING THE BALL ON JUST ABOUT ALL OF HIS TEAM'S POSSESSIONS HIS SIX THREEPOINT BASKETS IN THE FIRST HALF GOT THE BEARCATS OFF WINGING AND EVEN AFTER BELATED CLOSE GUARDING TRIMMED HIS SCORING OUTPUT HE WOUND UP WITH 23 POINTS HIS PASSING AND DEFENSIVE SKILLS HELPED KEEP THEM CLOSE AFTER A 164 SCORING RUN PULLED CAROLINA TO WITHIN A POINT AT HALFTIME 3637 NO TEAM WOULD LEAD BY MORE THAN FIVE POINTS IN REGULATION CINCINNATI'S BLOUNT OPENED THE SCORING IN OVERTIME BY SINKING A 10FOOT JUMP SHOT BUT THAT WOULD BE THE ONLY ONE OF NINE SHOTS HIS TEAM WOULD MAKE IN THE PERIOD TWO THREEPOINT BASKETS BY DONALD WILLIAMS A SOPHOMORE GUARD WHO'S THE SOLE NATIVE CAROLINIAN WHO PLAYS MUCH FOR THE HEELS PROVIDED THE WINNERS' DECISIVE POINTS THAT WILLIAMS HAD FAILED ON FIVE OF HIS PREVIOUS SIX LONGRANGE ATTEMPTS MERELY ATTESTED TO HIS SHOOTER'S MENTALITY I ALWAYS HAVE CONFIDENCE IN MY SHOTS SAID THE YOUNG MAN WHOSE 20 POINTS WERE SECOND ONLY TO LYNCH'S 21 FOR HIS TEAM THE VICTORY MEANS THAT NORTH CAROLINA WILL PLAY KANSAS IN ONE FINAL FOUR MATCH ON SATURDAY WHILE MICHIGAN AND KENTUCKY WILL MEET IN THE OTHER LIKE CINCINNATI KANSAS SWARMS ON DEFENSE AND HAS A GUARDORIENTED ATTACK SO IT SHOULD LOOK FAMILIAR TO THE HEELS IT WILL LOOK MORE FAMILIAR STILL BECAUSE ROY WILLIAMS THE KANSAS COACH WAS A LONGTIME SMITH ASSISTANT AT CAROLINA WE AND KANSAS USE A LOT OF THE SAME TERMINOLOGY SO WE'LL NEED TO CHANGE OUR SIGNALS SMITH NOTED BUT ONLY ONE TEAM WILL HAVE NORTH CAROLINA ON ITS JERSEYS 9303300037 930330 CUOMO IS EMERGING AS THE FRONTRUNNER FOR SUPREME COURT A DECISION HASN'T BEEN MADE BUT NEW YORK'S GOVERNOR TOPS LIST CLINTON AIDES SAY BY JEFFREY H BIRNBAUM AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON NEW YORK GOV MARIO CUOMO IS EMERGING AS THE CLEAR FRONTRUNNER TO BE PRESIDENT CLINTON'S FIRST NOMINEE TO THE SUPREME COURT A DECISION HASN'T BEEN REACHED AND OTHER NAMES ARE STILL BEING CONSIDERED IT ALSO ISN'T CLEAR WHETHER HILLARY RODHAM CLINTON WHO EXERCISES ENORMOUS INFLUENCE ON MATTERS SHE CARES ABOUT SUCH AS LEGAL ISSUES HAS BEEN ABLE TO FOCUS ON THE SUPREME COURT QUESTION GIVEN HER FATHER'S RECENT ILLNESS BUT SEVERAL PEOPLE CLOSE TO THE DELIBERATIONS SAY THERE IS A PRESUMPTION FOR MR CUOMO AND THAT A STRONG CASE MUST BE MADE AGAINST HIM IF ANYONE ELSE IS TO SUCCEED RETIRING SUPREME COURT JUSTICE BYRON WHITE FROM THE MOMENT JUSTICE WHITE SAID HE WOULD STEP DOWN THIS SUMMER MR CUOMO HAS BEEN FIRST AMONG EQUALS ON WHITE HOUSE LISTS DURING THE CAMPAIGN MR CLINTON INDICATED THAT HE FAVORED PLACING THE NEW YORK DEMOCRAT ON THE NATION'S HIGHEST COURT IN JUNE MR CLINTON TOLD AN MTV AUDIENCE GOV CUOMO WOULD BE A GOOD SUPREME COURT JUSTICE HE IS A LEGAL SCHOLAR WHO ALSO UNDERSTANDS THE IMPACT OF THE LAW ON REAL PEOPLE'S LIVES THAT DESCRIPTION STILL FITS THE QUALIFICATIONS MR CLINTON HAS SAID PUBLICLY HE WOULD DEMAND OF ANY NOMINEE AND IN PRIVATE CONVERSATIONS THE PRESIDENT AND HIS TOP AIDES HAVE DISCUSSED HOW MR CLINTON'S CAMPAIGN COMMENTS HAVE MADE IT HARD FOR HIM TO DENY MR CUOMO THE SLOT SAID ONE ADVISER WE EITHER GIVE IT TO CUOMO OR HAVE A GOOD REASON WHY NOT MR CLINTON APPARENTLY HAS GIVEN THE POSSIBILITY OF CHOOSING MR CUOMO CONSIDERABLE THOUGHT LAST FALL MR CLINTON WAS PRESSED BY SKEPTICAL AIDES ABOUT MR CUOMO'S CREDENTIALS FOR SUCH AN APPOINTMENT IN RESPONSE MR CLINTON QUICKLY RATTLED OFF TWO OR THREE SPECIFIC QUALITIES THAT WOULD COMMEND THE NEW YORK GOVERNOR FOR THE JOB MR CLINTON HAS BEEN UNDER CONSIDERABLE PRESSURE TO APPOINT A WOMAN PERHAPS EVEN THE FIRST BLACK WOMAN TO THE COURT SUCH A DECISION WOULD BE CONSISTENT WITH HIS DRIVE FOR DIVERSITY IN GOVERNMENT BUT WHITE HOUSE AIDES BELIEVE THEY WILL HAVE AT LEAST ONE OR TWO MORE APPOINTMENTS TO THE SUPREME COURT DURING THE CLINTON PRESIDENCY WHICH WOULD LEAVE PLENTY OF OPPORTUNITY TO APPOINT A WOMAN AND WITH JANET RENO AS THE NATION'S FIRST FEMALE ATTORNEY GENERAL THE WHITE HOUSE FEELS UNDER LESS PRESSURE TO NOMINATE EITHER A WOMAN OR A MINORITY TO THE SUPREME COURT THIS TIME AROUND SOME OF MR CLINTON'S ADVISERS EVEN SAY THEY WOULDN'T MIND BEING CRITICIZED BY CERTAIN OF THE MORE VOCAL WOMEN'S GROUPS FOR FAILING TO NAME A WOMAN TO THE COURT STANDING FIRM AGAINST SUCH AN ASSAULT THEY THINK WOULD SHOW THAT MR CLINTON WON'T ALWAYS BEND TO THE PEOPLE HE ONCE DERIDED AS BEAN COUNTERS THOSE WHO INSIST ON STRICT QUOTAS OF WOMEN AND MINORITY APPOINTMENTS ANOTHER CALCULATION IS MORE NEGATIVE IF MR CLINTON DOESN'T NOMINATE MR CUOMO THE SOMETIMES THINSKINNED NEW YORKER COULD CAUSE A GREAT DEAL OF TROUBLE IN 1996 WHEN MR CLINTON IS TO SEEK REELECTION IN SEARCHING FOR A NOMINEE MR CLINTON IS SAID TO BE LOOKING FOR SOMEONE WHO IS A FIRSTRATE LEGAL MIND AND ALSO A CONSENSUS BUILDER WHO CAN WORK WELL WITH THE CURRENT JUSTICES AND HELP NUDGE THE COURT MORE TOWARD THE LEFT LIKE FORMER CHIEF JUSTICE EARL WARREN WHO WAS A GOVERNOR MR CUOMO COULD BRING HONED POLITICAL SKILLS TO THE COURT MR CUOMO ALSO HAS THE NECESSARY LEGAL CREDENTIALS HE WAS FIRST IN HIS CLASS AT ST JOHN'S UNIVERSITY LAW SCHOOL CLERKED FOR HIS STATE'S HIGHEST COURT THE COURT OF APPEALS WAS FOR YEARS A PRACTICING TRIAL LAWYER AND WORKED FOR A TIME AS A LAW SCHOOL PROFESSOR A CUOMO APPOINTMENT WOULD BE WIDELY APPLAUDED AMONG DEMOCRATS AS AN EFFORT BY MR CLINTON TO REACH OUT TO THE MORE LIBERAL WING OF THE PARTY IN TERMS OF THE DEMOCRATIC PARTY IT COULD BE A VERY VERY POPULAR CHOICE SAID MARK SIEGEL A DEMOCRATIC STRATEGIST SOME PEOPLE THINK HE MR CUOMO IS THE PARTY'S INTELLECTUAL LEADER STILL MR SIEGEL CONCEDED THAT MR CUOMO'S AGE 60 COULD BE A DRAWBACK A YOUNGER PERSON COULD HAVE A LONGER IMPACT ON THE COURT BUT THE 46YEAROLD MR CLINTON HAS SAID THAT HE WOULDN'T HAVE ANY INHIBITION ABOUT APPOINTING SOMEONE 50 YEARS OLD OR OLDER THERE IS STILL LOTS OF TIME FOR MR CLINTON TO MAKE HIS CHOICE AND THERE IS PRESSURE FOR HIM TO CHOOSE SOMEONE ELSE JUST LAST WEEK RAHM EMANUEL THE WHITE HOUSE POLITICAL DIRECTOR WAS IMPLORED BY SEVERAL JEWISH ACTIVISTS AT THE JEWISH DEMOCRATIC COUNCIL TO SELECT A JEW HISPANIC AND AFRICAN AMERICAN GROUPS ALSO HAVE BEEN SPEAKING UP THERE WILL ALSO BE CRITICISM FROM CONSERVATIVES FORMER JUDGE AND SUPREME COURT NOMINEE ROBERT BORK FOR ONE FEARS MR CUOMO WOULDN'T INTERPRET THE CONSTITUTION STRICTLY HE'S WRITTEN VERY LITTLE BUT ONE OF THE THINGS HE WROTE SUGGESTS THAT HE THINKS A JUDGE'S JOB IS TO DO JUSTICE AS HE SEES IT AND NEVER MIND THE TEXT OF THE CONSTITUTION OR THE STATUTES MR BORK SAID ON CNN'S CROSS FIRE AS HE COMPARED THE NEW YORK GOVERNOR TO EARL WARREN BUT PROMINENT NEW YORKERS ARE WAITING WITH GREAT ANTICIPATION FOR MR CUOMO'S SELECTION ALREADY ADVISERS TO EXREP GERALDINE FERRARO THE FORMER DEMOCRATIC VICE PRESIDENTIAL NOMINEE HAVE SIGNALED THAT SHE WOULD BE A CANDIDATE FOR GOVERNOR NEXT YEAR IF MR CUOMO DOESN'T RUN OTHERS ESPECIALLY LT GOV STAN LUNDINE WOULD BE EXPECTED TO JOIN SUCH A RACE 9303300036 930330 INTERNATIONAL BRIEF PEARSON PLC PRETAX PROFIT FELL 16 IN '92 BUT FIRM IS BULLISH ON '93 PEARSON PLC OF BRITAIN PUBLISHER OF THE FINANCIAL TIMES NEWSPAPER REPORTED A 16 FALL IN 1992 PRETAX PROFIT BUT SAID IT WAS OPTIMISTIC ABOUT 1993 THE PUBLISHING GROUP WHICH ALSO OWNS CHINA MAKER ROYAL DOULTON AND MADAME TUSSAUD'S WAX MUSEUMS SAID ITS HARDHIT OIL SERVICES DIVISION HAD ALREADY NOTCHED A PROFIT IN 1993 WHILE BENEFITS FROM A COSTCUTTING PROGRAM AND A WEAKER POUND WERE EXPECTED TO COME THROUGH DURING THE YEAR THE GROUP HAD PRETAX PROFIT OF 1508 MILLION 225 MILLION THE DIVIDEND WAS RAISED 35 TO 12 PENCE 179 CENTS A SHARE THE RESULT WAS BETTER THAN EXPECTED BY MARKET WATCHERS PROFIT AT THE BOOK PUBLISHING DIVISION WHICH INCLUDES PENGUIN LONGMAN AND ADDISONWESLEY IN THE US SURGED 35 TO 804 MILLION 9303300035 930330 JWP'S FORMER PRESIDENT SAYS HE QUIT AFTER FINDING ACCOUNTING IMPROPRIETIES BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JWP INC'S FORMER PRESIDENT RESIGNED FROM THE TROUBLED COMPANY IN OCTOBER AFTER HE PRESENTED THE BOARD EVIDENCE OF ALLEGED WIDESPREAD ACCOUNTING IMPROPRIETIES ACCORDING TO SHAREHOLDER ALLEGATIONS THAT THE EXECUTIVE CONFIRMS ACCORDING A LAWSUIT FILED BY SHAREHOLDERS IN MANHATTAN FEDERAL COURT DAVID L SOKOL LEFT THE GIANT TECHNICAL SERVICES COMPANY BECAUSE OF THE MAGNITUDE AND PERVASIVENESS OF ACCOUNTING IRREGULARITIES HE HAD UNCOVERED PARTLY AIDED BY ACCOUNTING FIRM DELOITTE & TOUCHE AT THE TIME OF HIS DEPARTURE THE COMPANY OFFERED LITTLE EXPLANATION MR SOKOL LEFT JWP AFTER LESS THAN A YEAR AS PRESIDENT AND CHIEF OPERATING OFFICER AND UNTIL NOW HAS BEEN UNAVAILABLE TO COMMENT THE FORMER EXECUTIVE STARTED RAISING QUESTIONS ABOUT JWP'S ACCOUNTING PRACTICES LAST SPRING WHEN HE DISCOVERED UNCOLLECTIBLE ACCOUNTS RECEIVABLE AT JWP'S FOREST ELECTRIC UNIT AND IMPROPERLY CAPITALIZED ACQUISITION COSTS AT OTHER UNITS THE SUIT SAID WHEN ASKED FOR COMMENT YESTERDAY MR SOKOL SAID HE RESIGNED AT AN OCT 1 BOARD MEETING AFTER TURNING OVER TO THE BOARD INFORMATION WHICH I HAD UNCOVERED WHICH SERIOUSLY QUESTIONED THE INTEGRITY OF THE BOOKS AND RECORDS OF THE COMPANY MR SOKOL ALSO SAID HE RECOMMENDED THAT AN INDEPENDENT AUDIT BE CONDUCTED BY DELOITTE & TOUCHE ADDING THAT AT ALL TIMES DURING MY NINE MONTHS AT JWP THE CHIEF FINANCIAL OFFICER AND THE ACCOUNTING STAFF REPORTED TO ANDREW T DWYER JWP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE SHAREHOLDER ALLEGATIONS WERE INCLUDED IN AN AMENDED CLASSACTION COMPLAINT FILED IN MIDJANUARY THE SUIT WAS FILED ON BEHALF OF PERSONS WHO PURCHASED JWP SECURITIES BETWEEN MAY 1 1991 AND OCT 1 1992 THE DATE MR SOKOL RESIGNED THE SUIT WAS FILED AGAINST THE COMPANY ITS OUTSIDE AUDITOR ERNST & YOUNG DIRECTORS WHO WERE MEMBERS OF ITS AUDIT COMMITTEE AND SENIOR MANAGERS INCLUDING MR DWYER AND ERNEST W GRENDI FORMER CHIEF FINANCIAL OFFICER MR DWYER SAID YESTERDAY HE WOULDN'T COMMENT ON THE ALLEGATIONS IN THE LAWSUIT HOWEVER A SPOKESWOMAN SAID THE COMPANY DENIES ALL THE ALLEGATIONS IN THE LAWSUIT AND IS FILING A RESPONSE THIS WEEK TO THE LAWSUIT TO THAT EFFECT AN ERNST & YOUNG SPOKESMAN SAID WE DON'T BELIEVE THE COMPLAINT HAS ANY MERIT AND WE ARE MOVING TO HAVE IT DISMISSED AT THE TIME MR SOKOL QUIT THE COMPANY TOLD EMPLOYEES THERE SHOULD BE ONLY ONE PERSON RUNNING THE BUSINESS AND THE BOARD DETERMINED IT SHOULD BE ME MR DWYER SAID YESTERDAY HE ADDED THAT MR SOKOL DIDN'T RESIGN AT THE BOARD'S REQUEST MR SOKOL HOWEVER SAID THAT THE NOTION THAT ANY POWER STRUGGLE EXISTED BETWEEN MR DWYER AND MYSELF IS RIDICULOUS I LEFT BECAUSE I WAS UNWILLING TO IGNORE IMPROPER AND QUESTIONABLE ACCOUNTING PRACTICES HE DECLINED TO COMMENT ON OTHER ISSUES IN THE LAWSUIT DELOITTE & TOUCHE DECLINED TO COMMENT SINCE LAST SUMMER JWP HAS SUCCESSIVELY REVISED ITS EARNINGS OUTLOOK AND HAS ANNOUNCED A SERIES OF CHARGES THAT TOTAL ABOUT 300 MILLION FOR THE FULL YEAR IN ITS LATEST ANNOUNCEMENT EARLIER THIS MONTH JWP SAID IT EXPECTS TO REPORT A FOURTHQUARTER LOSS OF AT LEAST 265 MILLION INCLUDING AT LEAST 100 MILLION OF SOCALLED RESTRUCTURING CHARGES THE 1992 RESULTS ARE EXPECTED TO BE REPORTED IN MIDAPRIL JWP ALSO HAS SAID IT PLANS TO SELL ITS INFORMATION SERVICES SEGMENT AND FOCUS ON ITS CORE BUSINESSSUBCONTRACTING OF ELECTRICAL AND MECHANICAL SERVICES FOR LARGE CONSTRUCTION PROJECTS THE COMPANY EXPECTS 1992 REVENUE OF ABOUT 4 BILLION WITH THE LOSSES WE'RE EXPECTING TO REPORT IN THE FOURTH QUARTER THERE'S BASICALLY NO NET WORTH LEFT TO THE BUSINESS MR DWYER SAID BUT HE MAINTAINED THAT THE COMPANY STILL HAS VERY STRONG OPERATIONS CURRENT BACKLOG FOR THE MECHANICAL AND ELECTRICAL GROUP IS 13 BILLION THE SUIT SAYS ALLEGED IMPROPER ACCOUNTING PRACTICES DISCOVERED BY MR SOKOL AND DELOITTE & TOUCHE LAST SUMMER CAUSED THE COMPANY TO INITIATE THE FIRST OF A SERIES OF SIGNIFICANT WRITEDOWNS JWP AT THE TIME SAID THE DISCOVERIES OF ACCOUNTING PROBLEMS WERE MADE BY ITS INTERNAL AUDITORS AND CORPORATE ACCOUNTING STAFF THE SUIT SAYS MR SOKOL ARRANGED FOR JWP TO RETAIN DELOITTE BECAUSE HE WAS CONCERNED ABOUT THE INDEPENDENCE OF ITS OUTSIDE AUDITORS ERNST & YOUNG THE SUIT ALSO ALLEGES THAT JWP'S FINANCIAL STATEMENTS WERE ARTIFICIALLY INFLATED BY JWP EXECUTIVES IN ORDER TO BENEFIT FROM INCENTIVE COMPENSATION PROVISIONS MR DWYER YESTERDAY SAID ANY BONUSES PAID SENIOR EXECUTIVES WERE PAID IN STOCK THAT COULDN'T BE SOLD FOR AN EXTENDED PERIOD I HAVEN'T SOLD ANY OF MY STOCK HE SAID MR SOKOL IN A HIGHPROFILE HIRING LEFT OGDEN CORP'S WASTETOENERGY UNIT TO JOIN JWP IN EARLY 1992 ACCORDING TO JWP'S PRELIMINARY PROXY STATEMENT MR SOKOL WAS PAID A BASE SALARY OF 450000 LATER REDUCED TO 405000 AS A RESULT OF AUSTERITY CUTS HE ALSO RECEIVED 150000 JWP COMMON SHARES AS AN INCENTIVE DURING THE YEAR HE WAS PAID A SPECIAL CASH BONUS OF 1 MILLION AND WAS RELEASED FROM RESTRICTIONS ON SELLING THE STOCK MR SOKOL SAID THE BONUS PAID IN AUGUST WAS COMPLETELY UNRELATED TO HIS DEPARTURE HE SAID HE NEITHER REQUESTED NOR RECEIVED ANY SEVERANCE WHEN HE RESIGNED DESPITE THE VARIOUS WRITEOFFS THE COMPANY STILL FACES A NUMBER OF HURDLES IT HAS 484 MILLION IN DEBT ON WHICH IT HAS SUSPENDED INTEREST PAYMENTS LENDERS HOWEVER HAVE AGREED NOT TO TAKE ANY ACTION UNDER A STANDSTILL AGREEMENT THAT EXPIRES APRIL 30 WILLIAM SUTHERLAND AN ANALYST AT FOLEY MUFSON HOWE & CO IN PHILADELPHIA SAID HE WAS SURPRISED BY THE SIZE OF THE COMPANY'S RECENTLY REPORTED SHORTFALL FOR THE FOURTH QUARTER WHETHER JWP CAN CONTINUE AS A GOING CONCERN IS A SPECULATIVE QUESTION HE SAID WHICH I DON'T THINK IS GOING TO BE KNOWN FOR SOME TIME WHILE HE DECLINED TO SPECULATE ON THE IMPACT OF THE LATEST ALLEGATIONS IN THE SHAREHOLDER LAWSUIT HE SAID HE EXPECTS LENDERS TO WAIT TO SEE HOW JWP'S CORE BUSINESSES WILL PERFORM 9303300034 930330 LEISURE & ARTS TIMEOFF EXCURSIONS AND DIVERSIONS MARCH 30 APRIL 12 MORE THAN 450 WORKS AMASSED BY RENOWNED HUSBANDANDWIFE COLLECTORS LOUISINE W HAVEMEYER AND HENRY O HAVEMEYER BEST KNOWN AS THE PREMIER AMERICAN PATRONS OF THE FRENCH IMPRESSIONISTS ON VIEW ARE OBJECTS AND FURNISHINGS FROM THEIR NEW YORK MANSION THE INTERIOR OF WHICH WAS DONE BY LOUIS COMFORT TIFFANY AND SAMUEL COLEMAN DECORATIVE ART FROM ASIA ESPECIALLY CHINA AND JAPAN OLD MASTERS INCLUDING A GROUP OF REMBRANDT ETCHINGS AND DRAWINGS AND FRENCH 19THCENTURY WORKS BY SUCH ARTISTS AS INGRES DELACROIX MONET MANET AND DEGAS ALSO ON VIEW IS A LARGE SELECTION OF PAINTINGS BY GUSTAVE COURBET AND MARY CASSATT THE LATTER INCLUDING THREE PASTELS OF LOUISINE HAVEMEYER AND DAUGHTERS ADALINE AND ELECTRA METROPOLITAN MUSEUM OF ART FIFTH AVENUE AT 82ND STREET THROUGH JUNE 20 212 8795500 THE FIRST MAJOR EXHIBITION OF THE SCULPTURE OF MAX ERNST A PIONEER OF THE DADA AND SURREALIST MOVEMENTS WELL KNOWN FOR HIS PAINTING AND GRAPHIC WORK THE 80 BRONZES RELIEFS AND GOLD AND SILVER JEWELRY DATE FROM 1929 TO 1974 INDIANAPOLIS MUSEUM OF ART 1200 W 38TH ST APRIL 4MAY 30 ALMOST 130 PIECES DRAWINGS FURNITURE CERAMICS AND METALWORK CREATED BETWEEN 1910 AND 1925 BY CZECH ARCHITECTS DESIGNERS AND ARTISTS MOST ARE FROM PRAGUE'S MUSEUM OF DECORATIVE ARTS AND THE NATIONAL TECHNICAL MUSEUM COOPERHEWITT NATIONAL MUSEUM OF DESIGN SMITHSONIAN INSTITUTION 2 E 91ST ST APRIL 6JULY 25 212 8606868 LANDSCAPES CITYSCAPES GENRE SCENES STILL LIFES AND PORTRAITS BY SUCH ARTISTS AS JAN BRUEGHEL THE ELDER JACOB VAN RUISDAEL FRANS HALS AND JAN STEEN THE PAINTINGS BELONGED TO LORD SAMUEL A LONDON PROPERTY DEVELOPER WHO BUILT HIS COLLECTION OVER A 30YEAR PERIOD AND IN 1987 BEQUEATHED IT TO THE CITY OF LONDON MUSEUM OF FINE ARTS BOSTON 465 HUNTINGTON AVE THROUGH MAY 9 617 2679300 THE COLLECTION WILL BE PERMANENTLY INSTALLED IN THE LORD MAYOR'S HOME IN LONDON AFTER IT COMPLETES ITS AMERICAN TOUR AT THE SEATTLE ART MUSEUM JUNE 3JULY 25 FRANK GALATI DIRECTS AN ALLBLACK CAST IN THE COMPANY'S 1993 SEASON OPENER FOUR SAINTS IN THREE ACTS THE PIECE BY VIRGIL THOMSON AND GERTRUDE STEIN IS SET IN 16THCENTURY SPAIN AND EXPLORES THE LIVES OF ST TERESA OF AVILA ST IGNATIUS LOYOLA ST SETTLEMENT AND ST CHAVEZ THE CAST INCLUDES JONITA LATTIMORE BONITA HYMAN LAWRENCE CRAIG AND ALFONSE ANDERSON PHILIP BAUMAN CONDUCTS ATHENAEUM THEATRE 2936 N SOUTHPORT APRIL 10 14 16 18 21 24 AND 25 312 6630048 AN EVENING OF THEATER AND MUSIC WRITTEN BY HEIDI WALESON AND DIRECTED BY VICTORIA CLARK HIGHLIGHTING RARELY PERFORMED WORKS BY WOMEN COMPOSERS OF PAST AND PRESENT PERFORMERS INCLUDE CELLIST SHARON ROBINSON FLUTIST EUGENIA ZUKERMAN SOPRANO BEVERLY HOCH PIANISTS ILANA VERED AND ANNEMARIE MCDERMOTT AND THE COLORADO STRING QUARTET THE EVENING IS PRESENTED BY IN PRAISE OF WOMEN A GROUP FOUNDED BY MS VERED AND DEDICATED TO EMPOWERING WOMEN IN THE ARTS THE COC CONCLUDES ITS SEASON WITH PRODUCTIONS OF PUCCINI'S TOSCA AND BEDRICH SMETANA'S THE BARTERED BRIDE THE TOSCA CAST IS LED BY BARBARA DANIELS MICHAEL SYLVESTER AND TIMOTHY NOBLE WITH FRANK CORSARO DIRECTING AND RICHARD ARMSTRONG CONDUCTING APRIL 7 10 13 15 18 21 AND 24 GERMAN DIRECTOR CHRISTINE MIELITZ MAKES HER NORTH AMERICAN DEBUT WITH A NEW PRODUCTION OF BRIDE SUNG IN CZECH AND FEATURING GWYNNE GEYER JAY HUNTER MORRIS AND BENOIT BOUTET HERMANN MICHAEL IS THE CONDUCTOR AND REINHARD HEINRICH IS THE DESIGNER APRIL 14 17 20 23 AND 25 9303300033 930330 TECHNOLOGY POLL PROJECTS SURGE IN OVERSEAS GROWTH OF HIGHTECH FIRMS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL A SURVEY OF NORTH AMERICAN ELECTRONICS EXECUTIVES FORECASTS A BIG JUMP IN GLOBAL OPERATIONS OVER THE NEXT FIVE YEARS BAD NEWS FOR A US HIGHTECH WORKFORCE THAT LAST YEAR SHRANK BY ABOUT 100000 PEOPLE THE STUDY TO BE RELEASED TODAY BY ERNST & YOUNG AND ELECTRONIC BUSINESS MAGAZINE PREDICTS THAT THE PERCENTAGE OF NORTH AMERICAN ELECTRONICS COMPANIES WITH GLOBAL SCOPE WILL MORE THAN DOUBLE BY 1998 TO 34 OF THE TOTAL FROM 13 TODAY THE REPORT POLLED EXECUTIVES AT MORE THAN 300 US AND CANADIAN ELECTRONICS COMPANIES ON THEIR INTERNATIONAL PLANS IN ADDITION TO FORECASTING A BIG JUMP IN THE NUMBER OF ELECTRONICS COMPANIES WITH OVERSEAS BUSINESS THOSE WITH SOLELY DOMESTIC OPERATIONS ARE PROJECTED TO DROP TO 9 FROM 17 THE STUDY ALSO SAYS THE GLOBAL EXPANSION WILL BE PARTICULARLY PRONOUNCED AMONG SMALLER COMPANIES WHICH IN THE PAST HAVE TRAVELED OVERSEAS IN THE WAKE OF THEIR LARGER COMPETITORS THE PERCENTAGE OF GLOBAL COMPANIES WITH REVENUES OF 25 MILLION OR LESS COULD QUADRUPLE OVER THE NEXT THREE YEARS THE SURVEY SHOWS TO MORE THAN 40 THE TECHNOLOGY IS MOVING SO FAST THAT THE BIGGER COMPANIES ARE BEHIND IT NOT LEADING IT SAYS G STEVEN BURRILL AN ERNST & YOUNG NATIONAL DIRECTOR IN SAN FRANCISCO SIZE DOESN'T NECESSARILY CUT IT FOR THE DOMESTIC ELECTRONICS INDUSTRY THE SURVEY RESULTS OFFER A MIXED BLESSING INDUSTRY EXPERTS HAVE LONG WARNED US COMPANIES THAT THEY ARE DOOMED IF THEY DON'T EXPAND THEIR REACH BEYOND THE US PARTICULARLY AS IMPROVED TECHNOLOGY AND OPEN COMPUTING STANDARDS BLUR INTERNATIONAL BORDERS BUT THE OVERSEAS EXPANSION PUSH HAS COME AT THE EXPENSE OF SOME OF THE HIGHSKILLED HIGHPAYING JOBS THAT WERE SUPPOSED TO BE THE CORNERSTONE OF A REVIVED US ECONOMY SINCE MID1989 THE AMERICAN ELECTRONICS ASSOCIATION SAYS THE DOMESTIC INDUSTRY HAS LOST 300000 JOBS THE SURVEY SHOWS NOT ONLY THAT NORTH AMERICAN COMPANIES ARE GROWING ABROAD AT AN UNPRECEDENTED PACE BUT THAT THEIR DESTINATIONS ARE EXPANDING AS WELL MORE THAN A THIRD OF THE SMALLCOMPANY EXECUTIVES SURVEYED SAID THEY HAVE PLANS TO ESTABLISH OPERATIONS IN THE FORMER SOVIET UNION FOR INSTANCE ONLY 8 HAVE SUCH TIES TODAY AND NEARLY HALF OF THE EXECUTIVES POLLED EXPECT TO HAVE A PRESENCE IN MEXICO IN 1998 UP FROM ONLY 24 TODAY THE SURVEY SHOWS 9303300032 930330 FINANCING BUSINESS BELDEN & BLAKE CORP BELDEN & BLAKE CORP NORTH CANTON OHIO FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER AS MANY AS 3450000 ADDITIONAL COMMON SHARES THE OIL AND GAS CONCERN CURRENTLY HAS 34 MILLION SHARES OUTSTANDING AT YESTERDAY'S CLOSING PRICE OF 1175 IN THE NATIONAL OVERTHECOUNTER MARKET THE OFFERING WOULD GENERATE AS MUCH AS 405 MILLION BELDEN & BLAKE PLANS TO OFFER THREE MILLION SHARES AND WILL GRANT ITS UNDERWRITER JOHNSON RICE & CO OVERALLOTMENT OPTIONS FOR AN ADDITIONAL 450000 SHARES PROCEEDS WOULD BE USED TO REPAY DEBT AND FOR GENERAL PURPOSES 9303300031 930330 RAWSTEEL PRODUCTION ROSE 24 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 24 LAST WEEK TO 1812000 TONS FROM 1770000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT FELL 093 FROM THE 1829000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 824 OF ITS CAPABILITY LAST WEEK COMPARED WITH 805 THE PREVIOUS WEEK AND 831 A YEAR EARLIER THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9303300030 930330 PUBLISHING BOOK INDUSTRY IS TARGETING AVID READERS WITH AUTHOR TOURS AND CLUB PROGRAMS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN WRITER SUE MILLER TOURS THE COUNTRY NEXT MONTH TO PROMOTE HER NEW NOVEL FOR LOVE HER STOPS WILL INCLUDE PRIVATE HOMES IN SEVEN CITIES FROM NEW YORK TO SEATTLE IT ISN'T THAT NOVELISTS HAVE STARTED MAKING HOUSE CALLS MS MILLER'S VISITS ARE PART OF A GROWING EFFORT BY PUBLISHERS AND BOOKSTORES TO COURT BOOK GROUPS SUCH INFORMAL GROUPS WHICH MEET REGULARLY TO TALK ABOUT BOOKS IN MEMBERS' HOMES AREN'T NEW BUT THE GROUPS CONTINUE TO PROLIFERATE PARTICULARLY AMONG BABY BOOMERS LOOKING FOR BOTH INTELLECTUAL AND SOCIAL STIMULATION DESIGNING SPECIAL TOURS AND PROGRAMS FOR BOOK GROUPS IS A CALCULATED MARKETING PLOY AT A TIME OF MOUNTING COMPETITION IN THE BOOK TRADE THE ECONOMIC IMPACT MAY SEEM MINOR CONSIDERING THAT MOST GROUPS NUMBER A DOZEN OR FEWER PEOPLE AND MANY OF THEM ARE OPINIONATED TYPES WHO COULD PERCEIVE SUCH MARKETING EFFORTS AS INTRUSIVE STILL BOOKSELLERS AND PUBLISHERS BELIEVE THAT TARGETING THE COUNTRY'S MOST AVID READERS WILL PAY OFF OVER TIME VINTAGE BOOKS A DIVISION OF RANDOM HOUSE REACHED OUT TO BOOK GROUPS DIRECTLY THIS MONTH WITH A FREE PAMPHLET FOR BOOKSTORE CUSTOMERS CALLED READING GROUP RECOMMENDATIONS THE PAMPHLET FEATURES 15 VINTAGE PAPERBACK TITLES MOSTLY NOVELS THE FIRST ISSUE WAS IN SUCH DEMAND AT BOOKSTORES THAT 10000 MORE WERE PRINTED VINTAGE PLANS TO UPDATE THE LIST QUARTERLY AND ADD TITLES FROM OTHER RANDOM HOUSE DIVISIONS FOR THE FIRST TIME IN PUBLISHING HISTORY WE'VE FIGURED OUT HOW TO REACH THE TRUE BOOK ADDICTS CROWS JANE FRIEDMAN PUBLISHER OF VINTAGE WE'LL USE THIS TO MARKET NEW TITLES AND BACKLIST BOOKS BUT ESPECIALLY HIDDEN GEMS THAT WE BELIEVE BOOK ADDICTS WOULD LOVE IF ONLY THEY KNEW THEY EXISTED BOOKSTORES TOO ARE CODDLING EXISTING BOOK GROUPS AND INSTIGATING NEW ONES BOOK PASSAGE IN CORTE MADERA CALIF HIRES EXPERTS TO LEAD FIVE DIFFERENT BOOK GROUPS MONTHLY WITHIN THE STORE TWO OF THEM IN SPANISH DENVER'S POPULAR TATTERED COVER BOOKSTORE PROVIDES FREE ADVICE TO 125 LOCAL BOOK CLUBS UP FROM 50 TWO OR THREE YEARS AGO IN KNOXVILLE TENN DAVISKIDD BOOKSELLERS ORGANIZED A BOOKCLUB MATCHMAKING EVENING LAST MONTH ATTENDED BY 30 CUSTOMERS IN THE CASE OF MS MILLER'S NEW BOOK WE WERE LOOKING FOR A NEW SPIN TO INTRODUCE SUE'S THIRD NOVEL AND WE KNEW SHE WAS IMMENSELY POPULAR WITH BOOK GROUPS SAYS SUSAN MOLDOW EDITOR IN CHIEF OF ADULT BOOKS AT HARPERCOLLINS PUBLISHERS MS MILLER WILL BE DROPPING IN ON GROUPS THAT ARE ALREADY DISCUSSING HER NEW NOVEL BUT NATURALLY WE HOPE THIS WILL CATCH THE ATTENTION OF A WIDER PUBLIC THAN THE PEOPLE IN THOSE SEVEN LIVING ROOMS MS MOLDOW ADDS IN ADDITION TO BOOKGROUP VISITS MS MILLER WILL DO THE USUAL SIGNINGS READINGS AND MEDIA INTERVIEWS SUSAN BELL A RAND CORP CONSULTANT WHO WILL HOST MS MILLER IN HER SANTA MONICA LIVING ROOM NEXT MONTH SAYS THE CONCEPT MAKES PERFECT SENSE BOOK GROUPS ARE REALLY THE RAGE NOW AND WHILE THIS TOUR MIGHT NOT MAKE MONEY IN ITSELF SAYS MS BELL I THINK IT WILL SEND A MESSAGE TO LOTS OF WOMEN THAT SUE MILLER IS A VERY POPULAR AUTHOR LYNN GILBERT A BUSINESSWOMAN WHOSE BOOK GROUP OF 14 WILL MEET WITH THE AUTHOR IN NEW YORK ADDS WE LOVE THE IDEA THAT WE'LL BE ABLE TO TALK ABOUT HOW WE PERCEIVED THE BOOK AND THEN ASK SUE MILLER WHETHER THAT WAS HER INTENT THIS IS SOMETHING OF A GIMMICK AND IT CERTAINLY WON'T HAVE THE SAME IMPACT AS AN APPEARANCE ON OPRAH BUT WORD OF MOUTH CAN HAVE AN ENORMOUS IMPACT ON SALES WE'RE THE KIND OF PEOPLE WHO TALK ABOUT WHAT WE READ MOST PUBLISHERS AND BOOKSTORES CAN CITE BOOKS WHOSE SALES WERE SPARKED OR KEPT ROLLING BY BOOKCLUB READERS MEMBERS THE MAJORITY OF WHOM ARE WOMEN TYPICALLY CHOOSE MEATIER WORKS THAN BESTSELLING THRILLERS AND ROMANCES WE ARE ABSOLUTELY CONVINCED THAT THE ROAD FROM COORAIN' WAS MADE BY BOOK GROUPS SAYS MS FRIEDMAN THE VINTAGE PUBLISHER THE BOOK A COMINGOFAGE MEMOIR BY AUSTRALIAN JILL KER CONWAY WASN'T A BESTSELLER IN HARDCOVER BUT MADE THE LIST ALMOST IMMEDIATELY ONCE IT CAME OUT IN PAPERBACK DOUG DUTTON OF DUTTON'S BRENTWOOD BOOKS IN LOS ANGELES SAYS THAT BOOK GROUPS DROVE SALES OF THE REMAINS OF THE DAY A 1989 LITERARY NOVEL ABOUT A BRITISH BUTLER THAT IS NOW BEING MADE INTO A MOVIE IT DID OK AT FIRST BUT THEN TWO GROUPS ADOPTED IT AND THEN EVERY BOOK GROUP IN TOWN WANTED IT RECALLS MR DUTTON HE ESTIMATES THAT BOOK GROUPS COLLECTIVELY GENERATE 15 OF HIS SALES SO FAR THE MOST ELABORATE OVERTURES TO BOOK GROUPS HAVE COME FROM BOOKSTORES ELAINE PETROCELLI OWNER OF BOOK PASSAGE NEAR SAN FRANCISCO NOT ONLY HOSTS GROUPS IN HER STORE BUT ALSO VISITS GROUPS ANNUALLY IN THEIR HOMES LUGGING 50 TITLES SHE THINKS THEY SHOULD CONSIDER WHEN YOU HAVE A BOOK GROUP OF 20 PEOPLE WHO ALL BUY THE BOOK FROM YOU AND THEN THEY COME BACK AND BUY MORE BOOKS YOU BUILD A REGULAR DEVOTED FOLLOWING SAYS MS PETROCELLI MY DEVOTION TO MY OWN BOOK GROUP IS WHAT CONVINCED ME TO GET INTO THE BOOK BUSINESS INDEPENDENT NEIGHBORHOOD BOOKSTORES HAVE BEEN THE LEADERS IN PROVIDING BOOKGROUP SERVICES BUT NOW THAT THE BIG CHAINS ARE BRANCHING OUT FROM TINY MALL BOOKSTORES TO SUPERSTORES THAT EMPHASIZE SELECTION AND SERVICE THEY TOO ARE ENCOURAGING LOCAL MANAGERS TO AID COMMUNITY GROUPS A NUMBER OF THE NEW BARNES & NOBLE SUPERSTORES OFFER INHOUSE BOOK CLUBS BUT THE MOST INNOVATIVE ONE IS THE BRAINCHILD OF KATE WILLIAMS THE FRESNO CALIF STORE MANAGER HOUSED IN A STRIP MALL ON A CORNER WHERE LOCAL TEENAGERS ASSEMBLE THE STORE HAD BEEN A TARGET OF GRAFFITI WRITERS AND TWICE HAD WINDOWS SHOT OUT LAST MONTH MS WILLIAMS STARTED OFFERING FRIDAY NIGHT YOUNG ADULT BOOK GROUPS FOCUSING ON SUCH GENRES AS SCIENCE FICTION AND DRAMA I DIDN'T WANT TO JUST THROW KIDS OUT OF THE STORE EVERYBODY DOES THAT AND THEY HAVE NOWHERE TO GO SHE EXPLAINS THE KIDS WHO COME TO THE BOOK GROUPS SEEM INCREDIBLY EXCITED IT IS HARD TO PREDICT JUST HOW FAR PUBLISHERS AND BOOKSTORES WILL GO TO REACH BOOK GROUPS THOUGH A TEMPTING TARGET THEY POSE REAL PITFALLS FIRST OF ALL FINDING THE GROUPS ISN'T ALL THAT EASY THERE IS NO MASTER DIRECTORY OR MEMBERSHIP ASSOCIATION THE FEW NEWSLETTERS FOR BOOK GROUPS LIKE EX LIBRIS OF NEWTON MASS AND READING WOMEN IN WILMETTE ILL HAVE TINY SUBSCRIBER BASES IN PLANNING MS MILLER'S VISITS THE HARPERCOLLINS PUBLICITY DEPARTMENT MOSTLY PHONED BOOKSTORES FOR REFERRALS BUT SETTING UP THE TOUR TOOK SEVERAL MONTHS A SPOKESWOMAN SAYS PERSUADING AUTHORS TO DEBATE THEIR ART IN THE LIVING ROOMS OF STRANGERS WON'T ALWAYS BE EASY EITHER I'M SURE A LOT OF AUTHORS WOULDN'T WANT TO DO THIS CONCEDES MS MILLER BUT I'M LOOKING FORWARD TO THE GIVE AND TAKE I LIKE THE IDEA OF RESPONDING TO REAL READERS NOT JUST A LINE OF PEOPLE IN A STORE AFTER SHE WROTE HER FIRST NOVEL THE GOOD MOTHER MS MILLER SAYS SHE WAS INVITED TO DISCUSS IT WITH A NEW YORK BOOK GROUP WHICH OFFERED TO PAY HER AIR FARE FROM BOSTON IT WAS A CHANCE TO TALK ABOUT WHAT I WAS TRYING TO DO AT DIFFERENT PARTS SHE RECALLS BUT I WASN'T PREPARED FOR HOW DIRECT PEOPLE WERE ABOUT ASPECTS THEY DIDN'T LIKE I THINK I'LL DO BETTER AT HANDLING THAT SORT OF THING THIS TIME JANE SMILEY WHO WON THE PULITZER PRIZE FOR A THOUSAND ACRES IS ALSO QUITE POPULAR WITH READING GROUPS BUT SHE IS LEERY OF PRIVATE MEETINGS WITH SUCH GROUPS EVERY IDEA DESERVES A TRY AND I RESPECT SUE MILLER'S WORK ENORMOUSLY BUT THIS IS A TREND I WOULDN'T WANT TO SEE PROMOTED SAYS MS SMILEY BOOK GROUPS ARE A GRASSROOTS HOMEGROWN GOOD THING THAT PROMOTES SUBSTANTIVE READING PUBLISHERS SHOULDN'T FIDDLE OR THEY'LL RUIN THE PURITY AND FUN OF THAT SOME BOOKGROUP MEMBERS AGREE I WOULD FIND THE PRESENCE OF AN AUTHOR EXTREMELY INTIMIDATING AND UNNATURAL THAT'S PART OF THE JOY IN READING DICKENS SAYS JERRY PATTERSON AN APPRAISER OF RARE BOOKS WHO BELONGS TO A NEW YORK BOOK GROUP I DON'T EVEN LIKE THIS IDEA OF PUBLISHERS MAKING RECOMMENDATIONS HAVING A READING LIST IS TOO MUCH LIKE SCHOOL WE WANT TO STAY SPONTANEOUS AND WE DON'T EVER WANT THESE PEOPLE TO KNOW WHERE WE LIVE WASHINGTON BOOK PASSAGE IN CORTE MADERA CALIF 9303300029 930330 EQUUS II AND EQUUS INVESTMENTS HOUSTON EQUUS II INC AND EQUUS INVESTMENTS INC SAID THEY FILED DOCUMENTS WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING THE PROPOSED MERGER OF THE TWO COMPANIES IN A TAXFREE STOCK SWAP VALUED AT AN ESTIMATED 713 MILLION UNDER TERMS OF THE AGREEMENT EQUUS II SAID IT WILL ACQUIRE EACH OF EQUUS INVESTMENTS'S 21 MILLION COMMON SHARES OUTSTANDING FOR 059 SHARES OF ITS COMMON SUBJECT TO MATERIAL CHANGES IN THE NET ASSET VALUE OF EITHER COMPANY BEFORE THE MERGER IS COMPLETED THE COMPANIES EXPECT THE MERGER WHICH IS SUBJECT TO CERTAIN APPROVALS TO BE COMPLETED BY ABOUT JULY 1 EQUUS II AND EQUUS INVESTMENTS ARE PRIVATE EQUITY INVESTMENT FIRMS WHICH SHARE A COMMON MANAGEMENT AND BOARD OF DIRECTORS THE COMPANIES SAID THE MERGER WILL DIVERSIFY THEIR COMBINED PORTFOLIO AND REDUCE ADMINISTRATIVE EXPENSES 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 9303300028 930330 CORPORATE FOCUS CALDOR AIMS TO DRESS UP RESULTS WITH APPAREL STRATEGY RETAILER SEEKS AN EDGE OVER COMPETITORS BY OFFERING TRENDIER CLOTHES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL HENRIETTA NY CALDOR STORES CARRY MORE THAN 2000 ITEMS EVERYTHING FROM GAS GRILLS TO DIAPERS AND COMPACT DISK PLAYERS BUT PRESIDENT MARC I BALMUTH PREFERS WANDERING THROUGH THE DISCOUNT RETAILER'S APPAREL SECTION LOOK AT THESE SHIRTS HERE THIS IS ALL THAT SPIKE LEE STUFF HIPHOP STUFF MR BALMUTH SAYS PLOPPING HIS RIGHT HAND ON TOP OF A CLOTHES RACK THIS IS VERY BIG RIGHT NOW MR BALMUTH LOOKS MORE LIKE A RETIRED FOOTBALL PLAYER THAN A PRESENT DAY POPCULTURE PULSETAKER BUT THE PRESIDENT OF CALDOR CORP IS BETTING THAT HE KNOWS WHAT THE PEOPLE WANT OUR APPAREL IS USUALLY OUT IN FRONT OF TRENDS MR BALMUTH SAYS WALKING PAST AN ARRAY OF BRIGHT STRETCH PANTS AND MATCHING TOPS AND THAT'S WHAT MAKES US DIFFERENT FROM OUR COMPETITORS BUT CALDOR'S STRATEGY IS NOT NECESSARILY NEW NOR DIFFERENT BY PUSHING THE TRENDINESS OF ITS APPAREL WHILE MAINTAINING LOW PRICES ON SUCH OTHER ITEMS AS PERSONAL CARE PRODUCTS CALDOR IS FOLLOWING A STRATEGY SIMILAR TO DAYTON HUDSON CORP'S TARGET STORES AND KMART CORP BUT THE FAMILIAR MANEUVER SEEMS TO BE WORKING FOR CALDOR WHICH IS BASED IN NORWALK CONN IN THE FACE OF THIN PROFIT MARGINS AND INTENSE COMPETITION FROM RETAILING GIANTS SUCH AS WALMART STORES INC CALDOR HAS BOUNCED BACK FROM A 1989 MANAGEMENTLED LEVERAGED BUYOUT THAT SADDLED THE DISCOUNT RETAILER WITH MORE THAN 450 MILLION IN DEBT TODAY CALDOR HAS TRIMMED MUCH OF ITS DEBT LOAD AND STARTED RENOVATING OLD STORES WHILE EXPANDING THE SIZE OF ITS 140STORE CHAIN WITH THE LOWEREND DISCOUNT RETAIL MARKET CLUTTERED CALDOR HAS DECIDED TO FIGHT FOR HIGHER GROUND BY PUSHING AN UPSCALE DISCOUNTER IMAGE WHILE KEEPING KEY COMMODITY PRICES LOW CALDOR TOUTS THE TRENDINESS OF ITS APPAREL AND THE RANGE OF ITS SELECTION INCLUDING HIGHEREND ITEMS SUCH AS TFAL KITCHENWARE THUS FAR THE FORMULA HAS PROVEN SUCCESSFUL IN THE YEAR ENDED JAN 30 CALDOR'S NET INCOME SURGED TO 345 MILLION OR 235 A SHARE FROM 23 MILLION OR 17 CENTS A SHARE A YEAR EARLIER AS THE COMPANY BENEFITED FROM IMPROVED SALES AND LOWER INTEREST COSTS IN THE MOST RECENT YEAR SALES INCREASED 14 TO 213 BILLION FROM 187 BILLION AND INTEREST EXPENSE HAS DWINDLED TO 399 MILLION IN THE PAST YEAR FROM 725 MILLION FOR THE YEAR ENDED FEB 2 1990 GROSS MARGINS HAVE BEEN STEADY AT ABOUT 28 IN THE PAST FEW YEARS AND SELLING GENERAL AND ADMINISTRATIVE COSTS HAVE DECLINED TO 236 OF SALES IN THE MOST RECENT YEAR FROM 265 IN 1988 AN INITIAL PUBLIC OFFERING IN FEBRUARY 1991 RAISED ABOUT 70 MILLION AND LOWERED THE COMPANY'S DEBTTOEQUITY RATIO TO 72 FURTHER A RECENT OFFERING OF 23 MILLION SHARES WHICH RAISED ABOUT 44 MILLION WILL TRIM THE COMPANY'S DEBTTOEQUITY RATIO TO 52 THE DEBT LOAD HAS ALWAYS BEEN A CLOUD OVER OUR HEAD SAYS CHIEF FINANCIAL OFFICER ROBERT S SCHAUMAN IN THE EARLY YEARS WE COULD ONLY ADD FOUR OR FIVE STORES PER YEAR BUT THAT'S ALL WE WANTED TO DO BECAUSE WE HAD PLENTY OF INTERNAL THINGS TO ACCOMPLISH IN 1993 CALDOR PLANS TO OPEN 12 OR 13 NEW STORES INCLUDING THE FOUR STORES ALREADY OPENED HERE IN THE ROCHESTER AREA WHICH MARK THE COMPANY'S FARTHEST VENTURE WEST LATER IN THE YEAR CALDOR INTENDS TO EDGE FURTHER SOUTH INTO THE WASHINGTON AREA CALDOR HAS ALSO PURCHASED SIX FORMER ALEXANDER'S STORES IN THE NEW YORK CITY AREA FOR ABOUT 120 MILLION AND PLANS TO BEGIN OPENING FIVE OF THEM LATER THIS YEAR IT SOLD THE SIXTH STORE IN YONKERS TO BRADLEES CARL AND DOROTHY BENNETT OPENED THE FIRST CALDOR IN 1951 CALDOR A COMBINATION OF THE COUPLE'S NAMES REMAINED AN UNPRETENTIOUS REGIONAL CHAIN FOR ALMOST 30 YEARS UNTIL THE BENNETTS SOLD THEIR 65STORE CHAIN TO ASSOCIATED DRY GOODS IN 1981 FOR 314 MILLION A STILL BIGGER FISH MAY DEPARTMENT STORES INC SWALLOWED ASSOCIATED DRY GOODS IN 1986 BUT MAY DECIDED IN THE LATE 1980S TO ABANDON THE DISCOUNT RETAIL FIELD AND CONCENTRATE ON HIGHEREND RETAIL OPERATIONS IN 1989 MR BALMUTH AND DON CLARKE CALDOR'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER PURCHASED THE CALDOR CHAIN FOR 537 MILLION IN THE MANAGEMENTLED LEVERAGED BUYOUT ONCE IN POSSESSION OF CALDOR MESSRS CLARKE AND BALMUTH ACCELERATED CHANGES THEY HAD BEGUN BACK IN 1986 AND 1987 WHEN THEY TOOK CHARGE EVENTUALLY THE NEW OWNERS REPLACED ABOUT 200 OF 250 TOP MANAGERS AND UPGRADED THE COMPUTERIZED INVENTORY AND DELIVERY SYSTEMS AND MESSRS CLARKE AND BALMUTH BEGAN REVAMPING CALDOR'S FORMAT BY UTILIZING MORE DISPLAY SPACE AND IMPROVING THE TRENDINESS OF ITS APPAREL MUCH OF WHICH REMAINS OFFBRAND SOME FASHION ANALYSTS REMAIN SKEPTICAL OF CALDOR'S EFFORT TO DIFFERENTIATE ITSELF THROUGH ITS APPAREL LINES EXECUTIVE FEMALES AND OTHER WHITECOLLAR WORKING WOMEN WOULD RATHER ADMIT THEIR AGE THAN SAY THEY SHOPPED FOR CLOTHES AT CALDOR'S SAYS FASHION ANALYST ALAN MILLSTEIN PUBLISHER AND EDITOR OF THE FASHION NETWORK REPORT THOUGH THEY HAVE DONE WELL WITH SWEATS FOR THE ROSEANNE BARR SET AND THEY DO NICELY IN INTIMATE APPAREL BUT ONLY 33 OF CALDOR SALES COME FROM SOFT GOODS SUCH AS APPAREL CALDOR ALSO OFFERS HARD LINES 39 OF SALES SUCH AS SPORTING GOODS AND ELECTRONICS AND HOME LINES 28 SUCH AS LINENS MANY OF ITS NEW AND NEWLY REMODELED STORES GENERALLY MORE THAN 100000 SQUARE FEET UTILIZE GOOD LIGHTING AND WIDE AISLES IN CONTRAST WITH WALMART'S USUALLY LOWFRILL APPEARANCE SHARP NEON LIGHTING ADVERTISES THE ELECTRONICS SECTION AND INSTEAD OF STOPPING AT A GENERIC SNACK BAR CALDOR CUSTOMERS AT SEVERAL NEW STORES CAN CHOMP ON HOT DOGS AND FRIES AT INSTORE NATHAN'S FAMOUS INC FRANCHISES MEANWHILE THE WELLLIT SPACE HAS MADE THE APPAREL DISPLAYS MANY OF WHICH COLORCOORDINATE SEVERAL ITEMS MUCH BRIGHTER CALDOR DISPLAYS ITS CLOTHES IN A MANNER SIMILAR TO SPECIALTY RETAILERS SUCH AS GAP INC USING VARIOUS RACKS AND EXPLOITING WALL SPACE TO FURTHER PUSH ITS APPAREL BY RATCHETING UP ITS FASHION TASTES CALDOR HOPES TO SIPHON OFF SOME OF THE MORE VALUEMINDED DEPARTMENTSTORE CUSTOMERS WHO HAVE SHOPPED WITH ONLY ONE THING IN MIND SALES CALDOR CAN'T REALLY COMPETE WITH A WALMART ON HARD GOODS SO THEY NEED TO BEAT THEM ON FASHION SAYS ED JOHNSON PUBLISHER OF THE JOHNSON REDBOOK RETAILING SURVEY AND THEY HAVE BEEN SUCCESSFUL AGAINST WALMART WHEN THEY'VE FACED THEM CALDOR'S RECENT SUCCESSES HAVE SPARKED INTEREST AMONG SEVERAL ANALYSTS GRUNTAL & CO RECENTLY OPENED COVERAGE OF CALDOR STOCK WITH AN AGGRESSIVE BUY MR JOHNSON AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP ARE ALSO BULLISH ON THE STOCK CALDOR WHICH SOLD AT ITS FEBRUARY 1991 INITIAL PUBLIC OFFERING FOR 18 A SHARE NOW HOVERS IN THE LOW 30 RANGE 9303300027 930330 BUSINESS BRIEF HALLIBURTON CO ACQUISITION IS COMPLETED OF SMITH INTERNATIONAL UNIT HALLIBURTON CO DALLAS SAID IT COMPLETED ITS ACQUISITION OF SMITH INTERNATIONAL INC'S DIRECTIONAL DRILLING AND SERVICES BUSINESS FOR ABOUT 69 MILLION COMMON SHARES THE TRANSACTION IS VALUED AT ABOUT 254 MILLION HALLIBURTON AN ENERGY SERVICES CONCERN SAID WITH THE ACQUISITION IT WILL HAVE THE TECHNOLOGY AND SERVICES REQUIRED TO DRILL DIRECTIONAL WELLS DIRECTIONAL DRILLING IS THE DRILLING OF A NONVERTICAL WELL AT PREDETERMINED ANGLES AND DIRECTIONS THE COMPANY SAID IT EXPECTS SMITH AND ITS AFFILIATES TO SELL THE HALLIBURTON SHARES RECEIVED IN THE TRANSACTION SMITH IS A HOUSTON OIL AND GAS SERVICE COMPANY 9303300026 930330 MARKETING & MEDIA TIMES MIRROR AGREES TO SELL FOUR STATIONS TO ARGYLE TELEVISION LOS ANGELES TIMES MIRROR CO SAID IT AGREED TO SELL ITS FOUR BROADCAST TELEVISION STATIONS TO ARGYLE TELEVISION HOLDING INC IN TWO TRANSACTIONS FOR 335 MILLION IN CASH AND SECURITIES PLUS CERTAIN TAX BENEFITS TIMES MIRROR WHICH ALSO HAS INTERESTS IN NEWSPAPERS CABLE TELEVISION AND PUBLISHING SAID IT WILL RECOGNIZE A 235 MILLION GAIN ON THE TRANSACTION THE GAIN TOTALING BETWEEN 1 A SHARE AND 115 A SHARE WILL BE RECOGNIZED EITHER LATE THIS YEAR OR NEXT YEAR A COMPANY SPOKESWOMAN SAID UNDER THE FIRST AGREEMENT TIMES MIRROR WILL SELL KTVITV AN ABC AFFILIATE IN ST LOUIS AND WVTMTV AN NBC AFFILIATE IN BIRMINGHAM ALA TO ARGYLE IN THE SECOND TRANSACTION IT WILL SELL KDFWTV IN DALLAS AND KTBCTV IN AUSTIN TEXAS BOTH CBS AFFILIATES THE FIRST SALE IS EXPECTED TO BE COMPLETED THIS SUMMER AND THE SECOND BEFORE YEAR END FOR THE LONGER TERM TIMES MIRROR HAS CONCLUDED THAT IT IS BETTER SERVED TO DIRECT ITS RESOURCES TO OTHER BUSINESS AREAS SAID ROBERT F ERBURU TIMES MIRROR'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER TIMES MIRROR ACQUIRED THE FOUR STATIONS BETWEEN 1970 AND 1980 THE BROADCASTING BUSINESS HAD OPERATING PROFIT OF 299 MILLION ON REVENUE OF 1079 MILLION IN 1992 ARGYLE TELEVISION IS A NEWLY ORGANIZED COMPANY HEADED BY IBRA MORALES VICE PRESIDENT OF THE KATZ AMERICAN TELEVISION SUBSIDIARY OF KATZ COMMUNICATIONS INC A RADIO AND TELEVISION STATION SALES REPRESENTATIVE COMPANY IT IS AN AFFILIATE OF ARGYLE COMMUNICATIONS PARTNERS LP THIS ACQUISITION IS AN IMPORTANT STEP TOWARD BUILDING ARGYLE COMMUNICATIONS INTO AN ATTRACTIVE BALANCED AND INTEGRATED COMMUNICATIONS COMPANY MR MORALES SAID THE MOVE FOLLOWS ARGYLE COMMUNICATIONS' RECENT FORMATION OF A JOINT VENTURE WITH TIME WARNER CABLE A SUBSIDIARY OF TIME WARNER INC TO ACQUIRE CABLE TELEVISION SYSTEMS THE TIMES MIRROR STATION SALES ARE SUBJECT TO FEDERAL COMMUNICATIONS COMMISSION APPROVAL THE SETTLING OF CERTAIN TAXRELATED MATTERS AND THE RENEWAL OF THE TEXAS STATIONS' LICENSES 9303300025 930330 DIGI AND STAR GATE TO MERGE MINNEAPOLIS DIGI INTERNATIONAL INC SAID IT AGREED TO MERGE WITH CLOSELY HELD STAR GATE TECHNOLOGIES INC OF SOLON OHIO IN A TAXFREE STOCK SWAP VALUED AT ABOUT 10 MILLION UNDER TERMS OF THE PACT NEW SHARES OF DIGI WILL BE ISSUED TO STOCKHOLDERS OF STAR GATE BASED ON THE MARKET PRICE OF DIGI STOCK AFTER THE TWO COMPANIES ARE COMBINED IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY DIGI SHARES ROSE 25 CENTS TO 2275 STAR GATE HAD NET INCOME OF 885000 ON SALES OF 107 MILLION FOR THE 10 MONTHS THAT ENDED JAN 31 1993 THE COMPANIES SAID BOTH COMPANIES MAKE DATA COMMUNICATIONS HARDWARE AND SOFTWARE 9303300024 930330 LETTERS TO THE EDITOR CLEANING UP BAD HABITS CAN MEAN LONGER LIFE IN THE INTEREST OF PRESERVING THE CONCEPT OF PUBLIC AND PRIVATE PARTNERSHIP I STRONGLY PROTEST AMERICAN CYANAMID'S NICOTINE PATCH GIVEAWAY TO STATE AGENCIES MAKING NICOTINE PATCHES AVAILABLE GRATIS TO 50000 PUBLICAID RECIPIENTS WITHOUT ENSURING A PROPER HEALTH ASSESSMENT A MEANS OF DISTRIBUTION AND PROVISION OF AN EDUCATIONAL AND BEHAVIORAL CHANGE ENVIRONMENT IS SIMPLY IRRESPONSIBLE LEAVING THIS COMPREHENSIVE SUPPORT FUNCTION TO THE STATES IS A SETUP FOR FAILURE OUR WORK WITH INNERCITY POPULATIONS HAS SHOWN THAT WITHOUT THESE COMPREHENSIVE STRUCTURES FRONTLOADED INTO THE SMOKINGCESSATION EFFORT LOWINCOME PATCH USERS WILL RELAPSE WITHIN TWO TO THREE WEEKS EVEN WORSE THEY WILL CONTINUE TO SMOKE WHILE USING THE PATCH I APPLAUD YOUR FEB 23 ARTICLE POOR TO RECEIVE NICOTINE PATCH FROM CYANAMID FOR CALLING AMERICAN CYANAMID'S MANEUVER FOR WHAT IT IS A PUBLICRELATIONS PLOY TO COUNTER CRITICISM ABOUT THEIR PRICES AND PROFITS HOWEVER I FEEL THAT THE NEW ADMINISTRATION'S FINGERPOINTING AND BLAMING THE PHARMACEUTICAL COMPANIES FOR SPIRALING HEALTH CARE COSTS ARE NOT GOING TO GENERATE HEALTH CARE SOLUTIONS FOR THE NATION'S POOR INDEED QUITE THE OPPOSITE THIS KNEEJERK RESPONSE BY AMERICAN CYANAMID IS A CASE IN POINT CREATING INSTEAD A STUMBLING BLOCK IN AN AREA WHERE I BELIEVE EDUCATION AND EFFORT CAN MAKE A DIFFERENCE OUR WORK REVEALS THAT IN AN EDUCATIONAL AND SOCIAL SUPPORT ENVIRONMENT 30 OF LOWINCOME ADULTS POSITIVELY CHANGE THEIR WAY OF LIVING TO PREVENT DISEASE AND THE NUMBERS GO UP THE EARLIER IN LIFE THE EDUCATIONAL INTERVENTION BEGINS THE ECONOMIC COSTSAVINGS OF SUCH NUMBERS CAN BE ASTONISHING THE SOCIAL BENEFITS OF A HIGHERQUALITY AND LONGER LIFE FOR AMERICA'S INNERCITY POOR OUR COMMUNITIES AND SOCIETY AT LARGE ARE INCALCULABLE I AM SUGGESTING THAT WE CAN WORK TOGETHER TO FIND SOLUTIONS TO THE HEALTH CRISIS AFFECTING MILLIONS OF LOWINCOME AMERICANS AND ACCEPT A SOCIALLY RESPONSIBLE AGENDA 9303300023 930330 WHO'S NEWS MUIR QUITS BOARD OPERATIONS POST AT CIRCUS CIRCUS BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS CIRCUS CIRCUS ENTERPRISES INC'S MANAGEMENT SHAKEUP CONTINUED WITH THE RESIGNATION OF 39YEAROLD JAMES W MUIR AS THE CASINO COMPANY'S OPERATIONS CHIEF AND AS A BOARD MEMBER WILLIAM J PAULOS WHO HAD SERVED AS VICE PRESIDENT WAS NAMED SENIOR VICE PRESIDENT MR PAULOS 45 WILL CONTINUE TO SERVE AS SENIOR OPERATING EXECUTIVE FOR THE COMPANY'S 365 MILLION LUXOR CASINO PROJECT ON THE LAS VEGAS STRIP MR MUIR'S RESIGNATION AS CHIEF OPERATING OFFICER AND DIRECTOR IS EFFECTIVE APRIL 1 HIS DEPARTURE COMES SIX WEEKS AFTER THE RESIGNATION OF GLENN W SCHAEFFER 39 THE COMPANY'S PRESIDENT AND CHIEF FINANCIAL OFFICER FOLLOWING A CLASH WITH THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM G BENNETT 68 MR SCHAEFFER WAS WIDELY SEEN AS THE CHAIRMAN'S EVENTUAL SUCCESSOR AND HIS DEPARTURE CAUSED CIRCUS CIRCUS'S STOCK TO PLUNGE AND RAISED WALL STREET CONCERNS ABOUT SUCCESSION PLANS MR SCHAEFFER WAS SUCCEEDED BY CLYDE T TURNER 55 WHO HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF RIVAL MIRAGE RESORTS INC MR MUIR WILL NOT BE REPLACED RIGHT AWAY AND MR TURNER SAID HE AND MR BENNETT WILL ASSUME THE ADDITIONAL DUTIES MR TURNER ADDED THAT MIKE SLOAN CIRCUS CIRCUS'S GENERAL COUNSEL AND MIKE RUMBOLZ A NEWLY HIRED DEVELOPMENT EXECUTIVE WILL BE TAKING LARGER ROLES AS THE COMPANY SCOUTS FOR NEW MARKETS MR MUIR'S PROMOTION TO THE TOP OPERATING JOB WAS TIED TO A PREVIOUS MANAGEMENT SHAKEUP IN JULY 1991 WHEN RICHARD P BANIS STEPPED DOWN AS CHIEF OPERATING OFFICER AFTER MR BENNETT REVERSED A DECISION TO RETIRE MR MUIR WAS PHILOSOPHICAL ABOUT HIS DEPARTURE SOMETIMES CHANGE IS NECESSARY IN AN ORGANIZATION AND WHETHER OR NOT WE AGREE WITH IT IS EVENTUALLY IRRELEVANT HE SAID ANALYSTS HAD MIXED REACTIONS TO THE ANNOUNCEMENT AND EVEN THE MOST BULLISH CONCEDE THAT THE UPHEAVAL ADDS A MAJOR ELEMENT OF UNCERTAINTY TO A COMPANY LONG HAILED AS AN INDUSTRY LEADER STEVEN EISENBERG AN ANALYST WITH OPPENHEIMER & CO SAID HE REMAINS CONFIDENT THAT CIRCUS CIRCUS WILL CONTINUE TO GROW AND NOTED THAT MR PAULOS HAS OVERSEEN THE OPENING OF SEVERAL NEW CASINOS THE ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING CIRCUS CIRCUS STOCK WAS QUOTED AT 49 DOWN 75 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9303300022 930330 HEARD ON THE STREET FOREST PRODUCTS FIRMS ARE TAKEN DOWN A NOTCH ON FEARS OF FALLING PRICES WASHINGTON MOVE BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL SHARES OF FOREST PRODUCTS COMPANIES BUOYED FOR A WHILE BY SOARING LUMBER PRICES NOW ARE FACING A BUZZSAW OF NEGATIVE OPINION AS WALL STREET BRACES FOR POSSIBLE BAD NEWS FROM WASHINGTON THE STOCKS GOT REDUCED TO WOOD CHIPS YESTERDAY GOLDMAN SACHS REMOVED GEORGIAPACIFIC FROM THE LIST OF STOCKS IT RECOMMENDS TO ITS CLIENTS SENDING THE SHARES PLUNGING 1 3/4 TO 60 7/8 AND DONALDSON LUFKIN & JENRETTE DOWNGRADED WEYERHAEUSER AND LONGVIEW FIBRE FROM MODERATELY ATTRACTIVE TO NEUTRAL WHAT'S THE PROBLEM SOME INVESTORS BELIEVE LUMBER PRICES WILL SUBSIDE AFTER THEIR RECENT SURGE MOREOVER ANALYSTS AND MONEY MANAGERS FEAR THE FOREST PRODUCTS INDUSTRY WILL GET BAD NEWS AT A FRIDAY CONFERENCE IN PORTLAND ORE THE CONFERENCE CONVENED BY PRESIDENT CLINTON WILL SEEK A COMPROMISE BETWEEN ENVIRONMENTAL GROUPS AND LOGGERS THAT COULD ALLOW PARTS OF SOME GOVERNMENT TIMBERLANDS TO REOPEN FOR LOGGING AFTER BEING CLOSED MORE THAN A YEAR THE CONFERENCE IS TO ADDRESS PROBLEMS CAUSED BY THE TIMBERLANDS' CLOSING NOTABLY A LOSS OF WESTERN MILL JOBS BUT THE BIG WORRY FOR INVESTORS IS THAT THE ADMINISTRATION MIGHT IMPOSE A BAN ON EXPORTS TO COUNTRIES SUCH AS JAPAN WHERE FOREST PRODUCTS COMPANIES HAVE INCREASINGLY SENT THEIR TIMBER TO BE MILLED BY IMPOSING AN EXPORT BAN THE ADMINISTRATION COULD ACCOMPLISH SEVERAL GOALS AT ONCE INCLUDING SAVING JOBS AT MILLS AND EASING PRESSURE ON THE GOVERNMENT TO REOPEN THE TIMBERLANDS SUCH A MEASURE WOULD DELIVER A MIGHTY BLOW TO COMPANIES LIKE WEYERHAEUSER AND LONGVIEW FIBRE FOR EXAMPLE WHICH ARE COUNTING ON TIMBER EXPORTS TO CONTRIBUTE 50 OF THEIR PROFITS THIS YEAR ACCORDING TO COMMENTS MADE BY DONALDSON LUFKIN ANALYST MATT BERLER YESTERDAY TO THE FIRM'S SALES STAFF WEYERHAEUSER SKIDDED 2 1/2 TO 41 1/4 WHILE LONGVIEW SANK 1 TO 17 3/8 AMONG OTHER COMPANIES THAT WOULD BE AFFECTED BY SUCH A MOVE LOUISIANA PACIFIC EASED 1/8 TO 71 1/8 IN BIG BOARD TRADING WHILE WILLAMETTE INDUSTRIES TUMBLED 1 1/2 TO 38 IN NATIONAL OVERTHECOUNTER TRADING THE GROUP'S TUMBLE YESTERDAY CONTRASTS SHARPLY WITH THE RECENT RUNUP A NUMBER OF ANALYSTS HAVE MADE POSITIVE COMMENTS ON WEYERHAEUSER IN RECENT WEEKS WITH SOME RAISING THEIR EARNINGS ESTIMATES FUELING THE SURGE IN FORESTPRODUCTS STOCKS HAVE BEEN RISING LUMBER PRICES WHICH HAVE ALMOST DOUBLED SINCE THE FALL WITH THE REBUILDING AFTER HURRICANE ANDREW LEADING TO TIGHT SUPPLIES BUT NOW MONEY MANAGERS SAY THEY ARE EXPECTING THE STOCKS TO REVERSE COURSE I THINK SOME OF THESE GAINS ARE GOING TO BE GIVEN BACK NOW SAID ROBERT CHOW AN ANALYST AT FIDELITY INVESTMENTS GOLDMAN ANALYST JOHN CHRYSIKOPOULOS CUT HIS ESTIMATE FOR 1993 EARNINGS OF GEORGIA PACIFIC TO 30 CENTS A SHARE FROM 80 CENTS A SHARE IN COMMENTS TO GOLDMAN'S SALES STAFF YESTERDAY MORNING MR CHRYSIKOPOULOS SAID THE RISKREWARD RATIO OVER THE NEXT FEW MONTHS IS NOT VERY FAVORABLE DUE TO ADVERSE MARKET PSYCHOLOGY EXPECTED TO DEVELOP FOR WOOD PRODUCTS AND CONTAINERBOARD MARKETS LONGER TERM THE STORY IS MORE POSITIVE HOWEVER MR CHOW SAID I THINK INDIVIDUAL INVESTORS WHO OWN THESE STOCKS SHOULD SIT TIGHT HE SAID IN THE MEANTIME HOWEVER HE SAID INVESTORS SHOULD BE PREPARED FOR SOME ROUGH SLEDDING YOU MAY NOT BE HAPPY TWO WEEKS FROM NOW BUT ONE YEAR FROM NOW YOU WILL BE HE SAID MR CHOW SAID HE IS CURRENTLY PLANNING ON PICKING UP SOME BARGAIN STOCKS IN THE FOREST PRODUCTS SECTOR I PLAN ON BEING A BIG BUYER OF THE STOCKS OVER THE NEXT COUPLE OF MONTHS HE SAID OTHER BIG INVESTORS BELIEVE THAT EARNINGS AT FOREST PRODUCTS COMPANIES WILL BE PERMANENTLY HELPED BY THE ENVIRONMENTAL MOVEMENT THAT SPAWNED THE CLOSURE OF FEDERAL TIMBERLANDS IN THE FIRST PLACE OVERALL TIMBER SALES FROM FEDERAL LANDS WILL BE REDUCED SAID HARLAN SONDERLING VICE PRESIDENT AT PUTNAM INVESTMENTS THAT WILL CAUSE WOOD PRICES TO RISE ON A LONGTERM BASIS HE SAID WITH GEORGIAPACIFIC AMONG THE BENEFICIARIES INVESTORS SHOULDN'T MAKE THE MISTAKE OF THINKING THAT THE LUMBER PRICE ISSUE IS THE ONLY ONE FOR THESE COMPANIES HOWEVER EACH OF THE FOREST PRODUCTS COMPANIES IS IN THE PAPER BUSINESS TO SOME EXTENT THAT BUSINESS HAS PROBLEMS OF ITS OWN MR SONDERLING SAYS IT'S POSSIBLE PAPER PROFITS WON'T DO AS WELL AS THOSE FOR OTHER FOREST PRODUCTS HE SAID 9303300021 930330 SCIENCE IN THE LAB TB RESEARCHER USES NEW TOOLS ON ANCIENT FOE BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL LOCKED BEHIND DOUBLE DOORS EMBLAZONED WITH RED BIOHAZARD WARNINGS IN THE BRONX NY ARE SOME OF THE WORLD'S DEADLIEST LIFE FORMS TUBERCULOSIS BACTERIA THAT NOW DEFY THE DRUGS THAT PREVIOUSLY KILLED THEM WILLIAM R JACOBS JR ASSOCIATE PROFESSOR AT THE ALBERT EINSTEIN COLLEGE OF MEDICINE PEERS THROUGH THE WINDOW OF A THIRD LOCKED DOOR THAT LEADS INTO THE SPECIAL LABORATORY HOUSING THE BACTERIA AIR FILTERS AND OTHER EQUIPMENT PROTECT HIM AND THE OTHER RESEARCHERS WORKING WITH DRUGRESISTANT TB BACTERIA MOST OF WHICH WERE DRAWN FROM PATIENTS AT THE MONTEFIORE MEDICAL CENTER ACROSS THE STREET USING GENETIC TOOLS HE DEVELOPED DR JACOBS IS TRYING TO FIGURE OUT HOW TUBERCULOSIS BACTERIA CHANGE GENETICALLY TO BECOME DRUGRESISTANT WITH THAT INFORMATION HE WILL SEEK WAYS TO KILL THE KILLERS HANDLING BACTERIA HASN'T BOTHERED DR JACOBS IN THE PAST HE SPENT HIS EARLY YEARS AS A RESEARCHER STUDYING LEPROSY NOW HE SAYS THERE ARE STRAINS OF TUBERCULOSIS THAT SCARE HIM YET HE AND HIS STAFF WORK WITH VIRULENT FORMS OF TB BACTERIA DAILY EVERYONE WHO WORKS WITH THE BACTERIA MUST TAKE A TB TEST TWICE A YEAR SO FAR NO ONE HAS BECOME INFECTED HE SAYS THE SOFTSPOKEN 38YEAROLD PITTSBURGH NATIVE WAS ONE OF THREE OR FOUR SCIENTISTS WHO HAD ANY EXPERIENCE WORKING WITH TB BACTERIA WHEN THE DISEASE REEMERGED AS A NATIONAL RESEARCH PRIORITY A FEW YEARS AGO SUDDENLY HE'S A VERY BUSY MAN AS THE MEDICAL AND SCIENTIFIC COMMUNITIES TURN TO HIM AND HIS COLLEAGUE BARRY R BLOOM FOR ANSWERS TO THE PROBLEM OF TB DRUG RESISTANCE THE TWO MEN RUN ONE OF THE BIGGEST TB RESEARCH OPERATIONS IN THE US PHONE CALLS FROM FELLOW SCIENTISTS AND APPEARANCES BY RESEARCH ASSISTANTS WHO RUN ONE OF THE 10 OR SO PROJECTS GOING ON IN THE LAB CONSTANTLY INTERRUPT DR JACOBS THROUGH THE INTERRUPTIONS DR JACOBS TALKS ABOUT WHY HE'S STUDYING DRUGRESISTANT TB IT'S DANGEROUS BECAUSE IT CAN BE SPREAD THROUGH CASUAL CONTACT AND IT WILL COST THE HEALTHCARE SYSTEM BILLIONS OF DOLLARS IF IT ISN'T STOPPED DR JACOBS IS IN A RACE AGAINST TIME AFTER DECLINING STEADILY SINCE THE 1950S TB IS ON THE RISE AN ESTIMATED 10 TO 15 MILLION PEOPLE IN THE US ARE INFECTED WITH TB BACTERIA AND ABOUT 10 OF THEM WILL DEVELOP THE DISEASE THERE ARE HUNDREDS OF DRUGRESISTANT TB STRAINS AT LEAST THREE OF WHICH ARE RESISTANT TO ALL TB DRUG THERAPIES DRUGRESISTANT STRAINS EMERGE WHEN PATIENTS FAIL TO FINISH THEIR TREATMENT THAT ALLOWS THOSE BACTERIA THAT SURVIVED THE INITIAL DRUG DOSING TO PROLIFERATE AND PASS THE GENES THAT ENABLED THEM TO SURVIVE ONTO THEIR BILLIONS OF OFFSPRING DR JACOBS CONFRONTED MANY OF THE SAME PROBLEMS WORKING WITH THE TB BACTERIUM AS HE DID WITH ITS COUSIN THAT CAUSES LEPROSY THE ORGANISMS MULTIPLIED VERY SLOWLY AND THEIR TOUGH OUTER SHELL MADE GETTING TO THE ORGANISM TRICKY TO IDENTIFY WHICH MUTANT GENES ENABLED A TB BACTERIA TO RESIST THE KILLING EFFECT OF DRUGS HE NEEDED TO ISOLATE ITS 4000 GENES AND INSERT EACH ONE INTO A REGULAR TB BACTERIUM IF ONE OF THE REGULAR BACTERIUM THEN BECAME RESISTANT TO DRUGS HE WOULD HAVE FOUND THE RESPONSIBLE GENE THE BIG PROBLEM HOWEVER WAS GETTING THE GENES INTO REGULAR TB BACTERIA WHICH ARE SURROUNDED BY A COMPLEX AND TOUGH OUTER COAT IT'S LIKE A STEELBELTED RADIAL TIRE AROUND THE BACTERIA HE SAYS IN HIS WORK WITH LEPROSY BACTERIA DR JACOBS HAD USED A PHAGE A VIRUS THAT INVADES BACTERIA A PHAGE COULD CARRY THE DRUGRESISTANT GENE INTO REGULAR TB BACTERIA WHERE IT WOULD INCORPORATE ITS DNA INCLUDING THE INSERTED GENE INTO THE DNA OF THE BACTERIA HE HYPOTHESIZED BUT FIRST HE NEEDED TO FIND THE RIGHT PHAGE DR JACOBS AND HIS RESEARCH STAFF OF 15 COLLECTED 47 PHAGES FROM OTHER LABS AND SOIL SAMPLES SOME FROM HIS OWN BACKYARD AND FOUND ONE THAT WORKED THE ALTERED TB BACTERIA PRODUCED BY THE PHAGE METHOD WERE THEN EXPOSED TO AN ANTIBIOTIC AND THE ONES THAT SURVIVED HE DEDUCED CONTAINED THE GENE RESPONSIBLE FOR DRUG RESISTANCE DR JACOBS PUBLISHED HIS FIRST PAPER ON THE TECHNIQUE IN NATURE IN 1987 USING THE TECHNIQUE DR JACOBS AND HIS ASSISTANTS HAVE IDENTIFIED ONE GENE THAT APPEARS TO BE INVOLVED IN DRUG RESISTANCE TO ISONIAZID ONE OF THE TWO MOST COMMONLY PRESCRIBED DRUGS TO TREAT TB THE NEXT STEP IS FIGURING OUT HOW THE GENE ENABLES THE BACTERIA TO RESIST DRUGS THE GENE MAY HAVE CHANGED THE BACTERIA'S SURFACE PROTEINS THAT THE DRUG NORMALLY BINDS TO IT MAY HAVE CHANGED WHATEVER CHEMICAL THE DRUG NORMALLY ATTACKS WITHIN THE BACTERIA OR IT MAY PRODUCE ANOTHER CHEMICAL THAT RENDERS THE DRUG INACTIVE SAYS JAMES YOUNG VICE PRESIDENT OF RESEARCH AND DEVELOPMENT AT MEDIMMUNE INC WHICH IS WORKING WITH DR JACOBS AND DR BLOOM TO DEVELOP A BETTER TB VACCINE THE SCIENTISTS RECEIVE THEIR FUNDING FROM THE GOVERNMENT AS WELL AS THE HOWARD HUGHES MEDICAL INSTITUTE AT ALBERT EINSTEIN RESEARCHERS IN LABS OF DR JACOBS AND OTHERS MUST NOW TEDIOUSLY SORT THROUGH THOUSANDS OF GENES IN EACH OF THE HUNDREDS OF DRUGRESISTANT TB STRAINS THE PROCESS IS A SLOW ONE SIMPLY GROWING ENOUGH BACTERIA TO WORK WITH TAKES THREE TO FIVE WEEKS OR MORE DR JACOBS IS ALSO PURSUING ANOTHER LINE OF RESEARCH SEEKING TO IDENTIFY THE BACTERIAL GENE THAT CAUSES TB TO BE DEADLY TO HUMANS USING ANOTHER GENETIC TOOL CALLED A TRANSPOSON A PIECE OF DNA THAT HOPS FROM GENE TO GENE AND CAUSES MUTATIONS HE IS SEEKING TO CREATE SPECIFIC TYPES OF MUTATIONS THAT MIGHT REVEAL THE GENE THAT CAUSES VIRULENCE DR JACOBS SAYS THE BACTERIA WITH THE SPECIALLY CREATED MUTATION ARE THEN PUT IN RATS AND IF THE ANIMALS DON'T DEVELOP TB HE WILL HAVE FOUND A POSSIBLE WAY TO MAKE THE BACTERIA HARMLESS THAT COULD LEAD TO A BETTER TB VACCINE HE SAYS BUT IT'S CLEAR THAT CONQUERING THE LATEST TB THREAT WILL BE A COMPLICATED AND LENGTHY JOB THE SECRET TO BEING A BACTERIAL GENETICIST IS LEARNING HOW TO WIN AT BACTERIAL LOTTO DR JACOBS SAYS YOU HAVE TO FIND THAT ONEINABILLION EVENT 9303300020 930330 UNITED INSURANCE COS PURCHASE DALLAS UNITED INSURANCE COMPANIES INC SAID IT ACQUIRED 986 OF THE 25 MILLION COMMON SHARES OUTSTANDING OF SOUTHERN EDUCATORS LIFE INSURANCE CO FOR 20 MILLION THROUGH AN 810ASHARE TENDER OFFER UNITED IS AN INSURANCE HOLDING COMPANY WITH 5033 MILLION IN ASSETS SOUTHERN EDUCATORS BASED IN NORCROSS GA HAS ASSETS OF 1389 MILLION 9303300019 930330 POLITICS & POLICY CLINTON HEALTH CARE GOALS WIN PRAISE BUT INDUSTRY FINDS FAULT WITH MEANS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REPRESENTATIVES OF MAJOR HEALTH INTERESTS PRAISED THE BROAD GOALS OF THE CLINTON HEALTH CARE PLAN DURING A DAYLONG PUBLIC HEARING OF THE ADMINISTRATION'S HEALTH CARE TASK FORCE BUT TOOK ISSUE WITH MANY OF THE MEASURES BEING CONSIDERED TO ACHIEVE THEM VIRTUALLY ALL OF THE 64 GROUPS TESTIFYING PROCLAIMED SUPPORT FOR MAJOR REVISIONS TO THE HEALTH CARE SYSTEM TO PROVIDE HEALTH COVERAGE FOR ALL AMERICANS AND CONTROL MEDICAL COSTS BUT EVEN THOUGH THE 13HOUR SESSION WAS LARGELY POLITE THE QUESTIONS ANSWERS AND PREPARED PRESENTATIONS UNDERSCORED THE EXTREME DIFFICULTY THE CLINTON ADMINISTRATION FACES IN SELLING THE DETAILS OF HEALTH CARE REFORM MOST OF THE REPRESENTATIVES OF THE HEALTH CARE INDUSTRY INCLUDING GROUPS REPRESENTING DOCTORS HOSPITALS INSURANCE FIRMS AND DRUG COMPANIES EXPRESSED OPPOSITION TO GOVERNMENT CONTROLS ON MEDICAL FEES THE ADMINISTRATION IS STRONGLY CONSIDERING SUCH CONTROLS AT LEAST TEMPORARILY TO HOLD DOWN COSTS WHILE A RESTRUCTURED HEALTH SYSTEM IS BEING PUT IN PLACE TRUE EFFECTIVE COST CONTROL HAS NEVER BEEN ACHIEVED IN THIS OR ANY OTHER ECONOMY BY ARBITRARY CAPS ON EXPENDITURES SAID RAYMOND SCALETTAR CHAIRMAN OF THE AMERICAN MEDICAL ASSOCIATION THEY WILL NOT WORK IN HEALTH CARE I COUNSEL YOU MOST SINCERELY AGAINST IMPOSITION OF WAGE AND PRICE CONTROLS SAID JACK MOYNIHAN EXECUTIVE VICE PRESIDENT OF GROUP INSURANCE FOR METROPOLITAN LIFE ASSOCIATION TESTIFYING ON BEHALF OF THE ALLIANCE FOR MANAGED COMPETITION A GROUP REPRESENTING THE FIVE LARGEST HEALTH INSURERS PRICE CONTROLS NOT ONLY WILL KILL OUR INDUSTRY BUT THEY HAVE THE POTENTIAL TO KILL THE PATIENTS WHO COULD BENEFIT FROM THE PRODUCTS WE DEVELOP SAID G KIRK RAAB CHIEF EXECUTIVE OF GENENTECH INC TESTIFYING ON BEHALF OF THE INDUSTRIAL BIOTECHNOLOGY ASSOCIATION AND THE ASSOCIATION OF BIOTECHNOLOGY COMPANIES BUT VICE PRESIDENT ALBERT GORE WHO CONDUCTED THE SESSION TOLD A PANEL OF DOCTORS EVERYONE WHO HAS BEEN MAKING LOTS OF MONEY OFF THE HEALTH CARE SYSTEM FOR YEARS WILL HAVE TO SACRIFICE TO MAKE THE NEW HEALTH CARE SYSTEM WORK MR GORE WAS STANDING IN FOR THE TASK FORCE'S CHAIRWOMAN HILLARY RODHAM CLINTON WHO CANCELED HER APPEARENCE TO REMAIN IN ARKANSAS WITH HER AILING FATHER THE SESSION WAS THE FIRST PUBLIC HEARING OF THE TASK FORCE WHICH IS DRAFTING THE HEALTH CARE LEGISLATION PRESIDENT CLINTON HAS PROMISED TO SUBMIT TO CONGRESS IN MAY ALTHOUGH TOP ADMINISTRATION HEALTH OFFICIALS INCLUDING MRS CLINTON AND SENIOR WHITE HOUSE ADVISER IRA MAGAZINER HAVE MET WITH MOST OF THE GROUPS APPEARING TODAY THE TASK FORCE HAS BEEN CRITICIZED FOR HOLDING CLOSEDDOOR MEETINGS AND REFUSING TO INCLUDE REPRESENTATIVES OF SPECIAL INTERESTS MORE DIRECTLY IN FORMULATING THE PLAN EARLIER THIS MONTH IN RESPONSE TO A LAWSUIT CHARGING THE TASK FORCE WAS VIOLATING OPEN MEETING LAWS A FEDERAL JUDGE RULED THAT THE GROUP MUST HOLD INFORMATIONGATHERING MEETINGS IN PUBLIC BUT AFTER ALL THE UPROAR OVER PUBLIC MEETINGS THE GEORGE WASHINGTON UNIVERSITY GYMNASIUM WHERE YESTERDAY'S HEARING WAS HELD WAS MOSTLY EMPTY SAVE FOR SEVERAL DOZEN JOURNALISTS SCATTERED OVER THE BLEACHERS AND A SMALL THRONG OF LOBBYISTS AND OTHERS MUCH OF THE SESSION WAS TELEVISED LIVE ON CSPAN BUT MANY OF THE ADMINISTRATION'S TOP OFFICIALS SHOWED UP FOR AT LEAST PART OF THE MARATHON SESSION INCLUDING MR MAGAZINER HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA TREASURY SECRETARY LLOYD BENTSEN ATTORNEY GENERAL JANET RENO LABOR SECRETARY ROBERT REICH SECRETARY OF VETERANS AFFAIRS JESSE BROWN NATIONAL ECONOMIC COUNCIL CHAIRMAN ROBERT RUBIN SENIOR DOMESTIC POLICY ADVISER CAROL RASCO AND TIPPER GORE WIFE OF THE VICE PRESIDENT AND A TASK FORCE ADVISER ON MENTALHEALTH ISSUES BESIDES LISTENING TO THE HEALTH CARE INDUSTRY THE TASK FORCE ALSO HEARD FROM GROUPS REPRESENTING LABOR BIG AND SMALL BUSINESSES CONSUMERS THE ELDERLY THE DISABLED AND OTHERS ONE OF THE MOST SPIRITED EXCHANGES OF THE DAY CAME DURING TESTIMONY FROM REPRESENTATIVES OF SMALLBUSINESS GROUPS ALL BUT ONE OF THEM DENOUNCED THE PROSPECT OF A GOVERNMENT MANDATE REQUIRING THAT ALL EMPLOYERS CONTRIBUTE TO THE COST OF HEALTH INSURANCE FOR THEIR WORKERS DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON REPEATEDLY CALLED FOR AN EMPLOYER MANDATE AND ADMINISTRATION OFFICIALS SAY SUCH A MEASURE WILL ALMOST CERTAINLY BE A PART OF HIS HEALTH CARE BILL AN EMPLOYER MANDATE WOULD LITERALLY SOUND THE DEATH KNELL FOR MANY RESTAURANTS SAID STEPHEN ELMONT VICE PRESIDENT OF THE NATIONAL RESTAURANT ASSOCIATION MANDATES REALLY ARE OPPRESSIVE TO SMALL BUSINESS SAID SAMUEL CARRADINE EXECUTIVE DIRECTOR OF THE MINORITY CONTRACTORS ASSOCIATION WHO CONTENDED THAT EMPLOYEES OF MANY BUSINESSES THAT OFFER TO PAY FOR PART OF THEIR HEALTH PLAN DON'T OPT FOR THE COVERAGE VICE PRESIDENT GORE TOOK ISSUE WITH THAT NOTION AND SUGGESTED THAT THE MAIN REASON AN EMPLOYEE MIGHT DECLINE TO ENROLL IN AN EMPLOYER HEALTH PLAN IS BECAUSE HE OR SHE COULDN'T AFFORD THE PERSONAL CONTRIBUTION YOU WANT TO ARGUE ABOUT MANDATES MR GORE RETORTED TO FIGHT THAT BATTLE BY MAKING THE ARGUMENT THAT EMPLOYERS DON'T WANT HEALTH INSURANCE IS IN MY VIEW SOMEWHAT OFF THE MARK SEVERAL OFFICIALS ASKED THE PANEL PARTICIPANTS HOW THEY WOULD PROPOSE RAISING THE MONEY TO PAY FOR HEALTH BENEFITS FOR THE WORKING UNINSURED IF THEY DIDN'T REQUIRE EMPLOYERS PAY FOR PART OF THEIR EMPLOYEES' HEALTH PLAN MARGARET SMITH TESTIFYING ON BEHALF OF NATIONAL SMALL BUSINESS UNITED SUGGESTED TAXING EMPLOYEES ON EXCESSIVE HEALTH BENEFITS MR ELMONT SUGGESTED RAISING INCOME TAX RATES IAN OLGEIRSON CONTRIBUTED TO THIS ARTICLE JOHN D MOYNAHAN EXECUTIVE VICE PRESIDENT OF GROUP INSURANCE FOR METROPOLITAN LIFE INSURANCE CO TESTIFIED ON BEHALF OF A HEALTH INSURERS GROUP AT A HEARING OF THE CLINTON ADMINISTRATION'S HEALTHCARE TASK FORCE AN ARTICLE TUESDAY INCORRECTLY IDENTIFIED HIM AS JACK MOYNIHAN OF METROPOLITAN LIFE ASSOCIATION 9303300018 930330 ECONOMY PERSONAL INCOME FELL SLIGHTLY IN FEBRUARY BUT SPENDING CLIMBED WASHINGTON AMERICANS' INCOME DECLINED SLIGHTLY IN FEBRUARY BUT THEIR SPENDING INCREASED THE COMMERCE DEPARTMENT SAID PERSONAL INCOME FELL 01 AND SPENDING ROSE 03 LAST MONTH AFTER INFLATION IS TAKEN INTO ACCOUNT BOTH HAD SHOWN NO CHANGE IN THE PRECEDING MONTH WITHOUT ADJUSTMENTS FOR INFLATION INCOME ROSE A MODEST 02 IN FEBRUARY AND SPENDING CLIMBED A STRONGER 06 TO KEEP UP WITH THEIR SPENDING PACE AMERICANS HAD TO DIP INTO THEIR SAVINGS IN FEBRUARY AS A RESULT THE SAVINGS RATE FELL TO 41 LAST MONTH FROM 44 IN JANUARY IT WAS THE LOWEST THE RATE HAS BEEN SINCE OCTOBER 1990 SLUGGISH INCOME GROWTH IS TROUBLESOME TO MANY ECONOMISTS WHO SAY THAT CONSUMER SPENDING CAN'T BE SUSTAINED UNLESS THERE IS MORE SUBSTANTIAL GROWTH IN INCOMES AND JOBS THE DEPARTMENT ALSO REPORTED THAT SALES OF NEW ONEFAMILY HOUSES ROSE 46 IN FEBRUARY TO A SEASONALLY ADJUSTED ANNUAL RATE OF 595000 THE INCREASE FOLLOWED A REVISED 127 DECLINE IN JANUARY THE DEPRESSED HOMESALE REPORTS REFLECT A MIXED PICTURE OF VERY STRONG ECONOMIC FUNDAMENTALS AND LOUSY WEATHER SAID DAVID BERSON CHIEF ECONOMIST FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION PEOPLE HAVE JUST BEEN UNABLE TO TAKE ADVANTAGE OF THE LOW INTEREST RATES AND THE IMPROVING JOB MARKET HE SAID HE PREDICTED A RISE IN THE ANNUAL RATE TO A RANGE OF 650000 TO 675000 AFTER MARCH WHICH WAS ITSELF AFFECTED BY A BLIZZARD AND OTHER STORMS IN THE EAST THE SUPPLY OF NEW HOMES FOR SALE HELD EVEN AT AN AVERAGE 55 MONTHS AT THE END OF FEBRUARY THE MEDIAN PRICE OF NEW HOUSES SOLD IN FEBRUARY REBOUNDED TO 126700 FROM 118000 IN JANUARY HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS 9303300017 930330 TECHNOLOGY BRIEF EASTMAN KODAK CO AN EXPANDED SOFTWARE LINE TO BE USED BY TOSHIBA CORP EASTMAN KODAK CO IN AN EFFORT TO INCREASE THE USE OF PHOTO COMPACT DISKS BY BUSINESSES INTRODUCED AN EXPANDED LINE OF SOFTWARE AND ANNOUNCED A LICENSING AGREEMENT WITH TOSHIBA CORP THE ROCHESTER NY PHOTOGRAPHY COMPANY WILL ALLOW TOSHIBA TO USE THE KODAK PHOTO CD LOGO FOR ITS DRIVES THAT READ THE PHOTO CDS KODAK WHICH ALREADY HAS A SIMILAR ARRANGEMENT WITH APPLE COMPUTER INC DECLINED TO DISCLOSE TERMS PHOTO CD IS A SYSTEM THAT STORES PHOTOGRAPHS ON COMPACT DISKS SO THEY CAN BE VIEWED AND EDITED ON TELEVISIONS AND COMPUTERS THE COMPANY SAID THE NEW SOFTWARE WILL MAKE IT EASIER FOR COMPUTER USERS TO PUT FILES AND MAKE MULTIMEDIA PRESENTATIONS ON THE DISKS 9303300016 930330 WHO'S NEWS OLDE WINDSOR PARENT OF NEW ENGLAND BANK SAYS 2 OFFICERS QUIT WINDSOR CONN OLDE WINDSOR BANCORP THE HOLDING COMPANY FOR NEW ENGLAND BANK & TRUST CO SAID ITS TWO SENIOR OFFICERS BARRY R LOUCKS AND RAYMOND G HALSTED RESIGNED LAST WEEK MR LOUCKS 50 YEARS OLD WHO SERVED AS A SENIOR OFFICER OF THE BANK SINCE 1977 RESIGNED AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF OLDE WINDSOR AND AS CHAIRMAN OF NEW ENGLAND BANK & TRUST MR HALSTED 41 RESIGNED AS SENIOR VICE PRESIDENT AND A DIRECTOR OF OLDE WINDSOR AND AS PRESIDENT AND DIRECTOR OF THE BANK IN HIS LETTER OF RESIGNATION MR LOUCKS CITED THE FAILING REAL ESTATE MARKET IN THE NORTHEAST AND A LESS THAN HEALTHY GENERAL ECONOMY THESE CHALLENGES HAVE BROUGHT WITH THEM THE OPPORTUNITY FOR CHANGE AND THE NEED FOR NEW DIRECTION DOMINIC J FERRAINA 60 A DIRECTOR OF OLDE WINDSOR WAS NAMED CHAIRMAN OF THE COMPANY AND OF THE BANK MR LOUCKS IS ALSO CHIEF EXECUTIVE OFFICER OF THE BANK A POSITION HE WILL CONTINUE TO HOLD UNTIL A SUCCESSOR FOR THAT POST IS FOUND WHICH THE BANK EXPECTS TO BE IN THE SECOND QUARTER OLDE WINDSOR ALSO SAID THE BANK AGREED TO THE RECENT ISSUANCE OF A REGULATORY CEASE AND DESIST ORDER BY THE FEDERAL DEPOSIT INSURANCE CORP WHICH REQUIRES AMONG OTHER THINGS AN ANALYSIS OF THE BANK'S MANAGEMENT AND STAFFING NEEDS AS WELL AS STRATEGIC AND CAPITAL PLANS AS OF DEC 31 THE BANK HAD A TIER 1 CAPITAL RATIO A MEASURE OF ITS CORE EQUITY CAPITAL OF 598 AND A RISKBASED CAPITAL RATIO OF 1003 BOTH OF WHICH EXCEED THE MINIMUMS REQUIRED BY REGULATORS MR FERRAINA DECLINED TO COMMENT ON WHETHER THE RESIGNATIONS OF MR LOUCKS AND MR HALSTED WERE RELATED TO THE FDIC ORDER 9303300015 930330 TRAVEL FIRMS MAY GET JUST TINY SLICES OF AIR FARE POOL BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATIONS ARE RUSHING TO CLAIM THEIR SHARE OF THE PRICEFIXING CLASSACTION SETTLEMENT AGAINST THE AIRLINES BUT THEIR PIECE OF THE PIE MAY BE A LOT LESS THAN THEY THINK A HIGHERTHANEXPECTED NUMBER OF CORPORATIONS AS WELL AS LEISURE TRAVELERS WILL BE FILING CLAIMS THUS SPLITTING UP THE MONEY IN SMALLER SHARES THAT'S BECAUSE TRAVEL AGENTS AND CREDITCARD COMPANIES ARE DOING THE PAPERWORK USUALLY FOR FREE TO HELP CORPORATE CLIENTS GRAB THEIR SHARE OF A 396 MILLION POT OF DISCOUNT COUPONS THE CLAIMS PROCESS WAS ALSO RADICALLY SIMPLIFIED IN DECEMBER REDUCING MUCH OF THE DOCUMENTATION THAT TRAVELERS WERE REQUIRED TO COLLECT I THINK THE PUBLICITY HAS LED TO HIGH EXPECTATIONS BUT I'VE TOLD CLIENTS DON'T EXPECT VERY MUCH SAYS JERRY ARANSKY VICE PRESIDENT INDUSTRY RELATIONS FOR THOMAS COOK TRAVEL IN CAMBRIDGE MASS TRAVEL EXPERTS HAD ESTIMATED THAT FOR EVERY TRAVEL DOLLAR CLAIMED A COMPANY MAY GET BACK UP TO FIVE CENTS IN THE FORM OF COUPONS NOW ESTIMATES ARE THAT THE RETURN WILL BE ABOUT HALF A CENT THAT CAN STILL ADD UP TO A TIDY SAVINGS A COMPANY WITH 1 MILLION IN ANNUAL AIR EXPENSES COULD GET BACK 22500 IN COUPONS LAST WEEK US DISTRICT JUDGE MARVIN H SHOOB IN ATLANTA APPROVED THE SETTLEMENT STEMMING FROM CHARGES THAT PRACTICALLY ALL MAJOR US AIRLINES ILLEGALLY SET TICKET PRICES THE CARRIERS DENIED WRONGDOING BUT SETTLED THE CASE INCLUDING A COURTAPPROVED 144 MILLION FOR ATTORNEYS' FEES TO MINIMIZE LITIGATION COSTS VIRTUALLY ANYONE WHO BOUGHT TICKETS ON ANY OF NINE AIRLINES BETWEEN JAN 1 1988 AND JUNE 30 1992 IS ELIGIBLE FOR AN AWARD THE DEADLINE FOR FILING CLAIMS IS JUNE 1 SO FAR ABOUT 25 MILLION FORMS HAVE BEEN FILED FLIERS WILL ACTUALLY BE SPLITTING UP TWO POOLS OF AWARD CERTIFICATES WHICH CAN BE USED TO OFFSET THE PRICE OF FUTURE AIRLINE TICKETS BY UP TO 10 ONE POOL IS A 268 MILLION BASE FUND THAT WILL BE SPLIT ON A PER CAPITA BASIS AMONG ALL CLAIMANTS THE OTHER POOL FOR 128 MILLION IS FOR SOCALLED LONGFORM CLAIMANTS NAMELY COMPANIES AND HEAVY INDIVIDUAL TRAVELERS WHO QUALIFY FOR LARGER AWARDS WHEN THE SETTLEMENT WAS DISCLOSED LAST SUMMER COMPANIES THAT KEPT EXCELLENT TRAVEL RECORDS APPEARED PRIMED FOR A WINDFALL TRAVELERS WHO FILED THE LONG FORM HAD TO GATHER EXTENSIVE DOCUMENTATION OVER THE 4 1/2YEAR PERIOD IN CASE THEY WERE AUDITED MANY CORPORATE TRAVEL MANAGERS FIGURED THE TIME AND EXPENSE OF GATHERING THAT INFORMATION WOULD NOT BE WORTH THE DISCOUNT COUPONS IF WE HAD TO DO ALL THE DIGGING THAT INITIALLY HAD TO BE DONE IT WOULDN'T BE WORTH DOING SAYS MARK LUNDQUIST CORPORATE TRAVEL MANAGER FOR ECO LAB INC A MAKER OF CHEMICAL CLEANING PRODUCTS IN ST PAUL MINN BUT IN DECEMBER JUDGE SHOOB APPROVED A STREAMLINING MEASURE THAT REQUIRES CLAIMANTS TO PROVIDE ONLY SIX MONTHS OF TRAVEL DATA AND LOOSENS CERTAIN DOCUMENTATION DEMANDS MEANTIME LARGE TRAVEL AGENCIES SUCH AS AMERICAN EXPRESS CORP THOMAS COOK AND USTRAVEL BEGAN SETTING UP COMPUTER PROGRAMS TO GATHER FLIGHT DATA AND OFFER IT TO CORPORATE CLIENTS FOR FREE MR LUNDQUIST FROM ECO LAB WHICH SPENDS MORE THAN 4 MILLION A YEAR IN AIR TRAVEL IS HAVING HIS COMPANY'S RECORDS PREPARED FOR A SMALL FEE BY NORTHWESTERN BUSINESS TRAVEL A UNIT OF NORTHWESTERN TRAVEL SERVICE INC IN MINNEAPOLIS CORPORATIONS CAN ALSO USE THEIR CREDITCARD COMPANIES SUCH AS AMERICAN EXPRESS TO RETRIEVE TRAVEL RECORDS WITHOUT CHARGE IT'S A SORT OF MESSY SMELLY PROBLEM THAT NEEDS TO BE RESOLVED BUT WE HOPE TO SEE A LOT OF HAPPY CLIENTS SAYS ROBERT W HARRELL VICE PRESIDENT AIR FARE MANAGEMENT UNIT AMERICAN EXPRESS TRAVEL CORPORATE TRAVEL MANAGERS NOW HAVE LITTLE EXCUSE NOT TO FILE FOR CLAIMS I DON'T THINK IT'S SOMETHING YOU CAN IGNORE SAYS RUDOLPH MONTELEONE CORPORATE TRAVEL MANAGER FOR SANDOZ CORP WHICH IS HAVING AMERICAN EXPRESS GATHER ITS RECORDS IF YOU DON'T FILE FOR ANYTHING YOU DON'T GET ANYTHING THEN HOW DO YOU EXPLAIN THAT TO MANAGEMENT BUT THE COUPONS THEMSELVES CAN BE UNWIELDY THEY CAN GUM UP ACCOUNTING PROCEDURES REQUIRE EXTRA WORK TO KEEP TRACK OF AND THEY CANNOT BE USED ON HEAVILY TRAVELED DATES FOR BETTER OR WORSE THE COUPONS WILL NOT BE DISTRIBUTED FOR 12 TO 15 MONTHS THEY WILL TAKE SO LONG TO USE THE AIR FARES WILL PROBABLY RISE TO COMPENSATE FOR ANY ECONOMIC IMPACT THE COUPON PROGRAM MIGHT HAVE HAD SAYS MARK PESTRONK A WASHINGTON TRAVEL LAWYER 9303300014 930330 DANEK AGREES TO PAY UP TO 250 MILLION FOR SOFAMOR OF FRANCE MEMPHIS TENN DANEK GROUP INC IN A MOVE TO EXPAND ITS INTERNATIONAL OPERATIONS AGREED TO ACQUIRE SOFAMOR SA A CLOSELY HELD FRENCH CONCERN FOR MOSTLY STOCK AT A PRICE OF ABOUT 200 MILLION TO 250 MILLION DANEK'S STOCK PRICE JUMPED 15 DANEK AND SOFAMOR BOTH MAKE SPINAL IMPLANT DEVICES BUT SOFAMOR WHICH HAD REVENUE OF ABOUT 46 MILLION LAST YEAR HAS A MUCH GREATER INTERNATIONAL PRESENCE SELLING ABOUT 60 OF ITS GOODS IN 46 COUNTRIES OUTSIDE THE US DANEK SELLS JUST 10 OVERSEAS THIS WILL GIVE US A MUCH LARGER INTERNATIONAL PRESENCE SAID LAWRENCE FAIREY DANEK'S EXECUTIVE VICE PRESIDENT WHEN THE DEAL IS COMPLETED THE HOLDING COMPANY WILL BE RENAMED SOFAMOR/DANEK GROUP INC AND SOFAMOR SA DANEK MEDICAL AND DANEK MANUFACTURING WILL BECOME WHOLLY OWNED SUBSIDIARIES DANEK'S STOCK JUMPED 4125 TO CLOSE AT 3175 YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING THE COMPANY WILL ISSUE BETWEEN 61 MILLION TO 74 MILLION NEW SHARES TO SHAREHOLDERS AND WILL PAY CASH TO A DISSENTING SOFAMOR SHAREHOLDER WHO OWNS ABOUT A 27 STAKE IN THE FRENCH CONCERN DANEK WILL ISSUE ABOUT 400000 TO 500000 ADDITIONAL SHARES TO ACQUIRE CERTAIN PATENTS AND RIGHTS DANEK WHICH HAS ABOUT 177 MILLION SHARES OUTSTANDING SAID THE NUMBER OF SHARES TO BE ISSUED IN THE TRANSACTION WILL BE BASED ON THE AVERAGE PRICE OF ITS STOCK SHORTLY BEFORE THE SHAREHOLDER MEETING TO VOTE ON THE TRANSACTION DANEK WOULDN'T DISCLOSE THE FORMULA BUT SAID SOFAMOR HOLDERS WILL OWN ABOUT 31 OF THE COMBINED CONCERN DANEK SAID THE TRANSACTION WHICH REQUIRES ITS SHAREHOLDERS' APPROVAL WON'T DILUTE PERSHARE EARNINGS TO ITS SHAREHOLDERS EXCLUDING ONETIME TRANSACTION COSTS 9303300013 930330 TECHNOLOGY LOTUS SAYS IMPROV PROGRAM SELLING WELL AT INTRODUCTORY PRICE CAMBRIDGE MASS LOTUS DEVELOPMENT CORP SAID THAT SALES OF ITS NEW IMPROV FOR WINDOWS SPREADSHEET HAVE TOTALED A STRONG 125000 UNITS IN ITS FIRST MONTH AT AN INTRODUCTORY PRICE OF 99 IT'S SELLING AT NEARLY DOUBLE OUR INTERNAL FORECAST SAID EDWIN GILLIS CHIEF FINANCIAL OFFICER BUT MR GILLIS CAUTIONED THAT THE LARGE INITIAL SALES WERE TO DEALERS NOT RETAIL BUYERS AND THAT IT'S TOO EARLY TO DETERMINE HOW IT'S SELLING TO INDIVIDUAL CUSTOMERS MR GILLIS ALSO SAID SOME OF THE NEW REVENUE FROM IMPROV DURING THE FIRST QUARTER ENDING MARCH 30 WOULD BE OFFSET BY A CONTINUING DECLINE IN SALES OF SOFTWARE FOR MICROSOFT CORP'S DOS OPERATING SYSTEM DOS IS RAPIDLY BEING SUPPLANTED BY WINDOWS SOFTWARE WHERE LOTUS HAS A WEAKER POSITION IMPROV WENT ON SALE MARCH 3 MR GILLIS SAID HE EXPECTS LOTUS WILL REPORT NET FOR THE QUARTER ENDING MARCH 30 WITHIN ANALYSTS' ESTIMATES OF 20 CENTS TO 27 CENTS A SHARE THAT'S STILL WELL BELOW THE YEARAGO QUARTER WHEN EARNINGS JUMPED WITH THE START OF A NEW PRODUCT CYCLE TO 47 CENTS A SHARE DESPITE MR GILLIS'S CAUTION ON RETAIL SALES DEALERS SAY IMPROV IS SELLING BRISKLY IT'S RUNNING FAR ABOVE OUR EXPECTATIONS SAID NATHAN MORTEN PRESIDENT AND CHIEF EXECUTIVE OF COMPUSA THE BIG COMPUTER RETAILER IF THE EARLY SALES AT THE PROMOTIONAL PRICE ARE ANY INDICATION THIS IS GOING TO BE A LONGTERM WINNER EVEN AT THE HIGHER PRICE IMPROV'S PRICE WILL GO UP ON MAY 31 TO A LIST PRICE OF 495 SUGGESTING A RETAIL STREET PRICE OF ABOUT 350 MR GILLIS SAYS THAT IMPROV HAILED BY REVIEWERS AS FASTER AND MORE FLEXIBLE THAN TRADITIONAL SPREADSHEETS ENJOYS STRONG WORDOFMOUTH THAT WILL TRANSLATE TO SUSTAINED SALES AT THE NEW PRICE 9303300012 930330 DELTA TO RETIRE 28 JETS LAY OFF 600 PILOTS IN THIRD ROUND OF COSTCUTTING IN A YEAR BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL DELTA AIR LINES SAID IT WILL RETIRE 28 JETS AND LAY OFF 600 PILOTS IN A THIRD STEEP ROUND OF COSTCUTTING IN LESS THAN A YEAR THE ACTION WILL SAVE THE US'S THIRDLARGEST CARRIER WHICH HAS HAD A STRING OF SIX CONSECUTIVE UNPROFITABLE QUARTERS 100 MILLION ON AN ANNUALIZED BASIS THE MOVE CUTS THE CARRIER'S CAPACITY 1 SYSTEMWIDE AND 3 ON ITS TRANSATLANTIC FLIGHTS THE MOVE IS ALSO A SHARP REBUKE TO DELTA'S 9300 PILOTS WITH WHOM THE COMPANY HAS BEEN DISCUSSING CONCESSIONS AND GIVEBACKS SINCE THE FALL WHILE DELTA CHAIRMAN RONALD W ALLEN SAID THAT THE FURLOUGHS WERE UNRELATED TO THE CONTINUING DISCUSSIONS WITH THE AIR LINE PILOTS ASSOCIATION HE DID SAY THAT WE HAVE BEEN VERY DISAPPOINTED WITH THE LACK OF RESPONSE FROM ALPA WHILE OTHER EMPLOYEES AT THE ATLANTA CARRIER LAST YEAR HAD THEIR PAY CUT 5 AND BENEFITS TRIMMED IN AN EFFORT TO REDUCE COSTS DELTA LAST WEEK SAID IT WASN'T SATISFIED WITH A CONCESSIONARY PILOT OFFER THAT GAVE UP LESS THAN OTHER WORKERS AS IF TO DRIVE THE MESSAGE HOME DELTA YESTERDAY POINTEDLY DIDN'T LAY OFF FLIGHT ATTENDANTS OR OTHER EMPLOYEES ASSOCIATED WITH THE 28 JETS MR ALLEN SAID THE TIMING OF YESTERDAY'S ANNOUNCEMENT HAD MORE TO DO WITH THE EXPIRATION OF LEASES ON THE JETS TO BE RETIRED THAN WITH GETTING THE PILOTS' ATTENTION DELTA SAID IT WOULD REDUCE BY 12 THE NUMBER OF AIRBUS INDUSTRIE A310S IT WILL OPERATE THE AIRLINE WILL RETIRE ALL 21 A310S IT ACQUIRED THROUGH ITS ASSET PURCHASE FROM PAN AM CORP BUT WILL ACCEPT DELIVERY OF NINE NEW A310S IT HAD PREVIOUSLY ORDERED AT THE SAME TIME MR ALLEN SAID DELTA WILL RETIRE 16 OLDER BOEING CO 727S BY JANUARY THOSE PLANES MOST OF WHICH ARE CURRENTLY USED ON DELTA'S NORTHEAST SHUTTLE WILL BE REPLACED BY NEWER 727S OPERATING IN DELTA'S US FLEET IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY DELTA GAINED 2875 TO 5475 SAM BUTTRICK AN AIRLINE ANALYST WITH KIDDER PEABODY SAID THAT THE RISE IN DELTA'S SHARE PRICE YESTERDAY HAD A LOT TO DO WITH IMPROVED INDUSTRYWIDE DOMESTIC REVENUE TRENDS ALSO DELTA IS FOLLOWING AN INDUSTRYWIDE TREND TOWARD CAPACITY CUTBACKS AND RETIREMENT OF OLDER FUELINEFFICIENT JETS TWO WEEKS AGO AMR CORP'S AMERICAN AIRLINES ELIMINATED 25 OLDER MODEL DC10S FROM ITS FLEET BY GETTING RID OF SO MANY OF THE A310S DELTA ALSO SIGNALED THAT AFTER THE SUMMER SEASON IT WOULD BE CUTTING BACK ITS LESS SUCCESSFUL TRANSATLANTIC ROUTES I THINK WITH DELTA IN PARTICULAR THE MARKET IS HEARTENED TO SEE IT SCALING BACK ITS TRANSATLANTIC EXPOSURE GIVEN THAT IT RECORDED AN OPERATING LOSS IN 1992 IN THE ATLANTIC MARKET LARGER THAN ANY CARRIER HAS EVER LOST IN EUROPE MR BUTTRICK SAID BUT DELTA'S MOVE IS A CONTINUATION OF ITS EFFORTS TO MINIMIZE LOSSES THEY'RE NOT GETTING TO ANYTHING REVENUE ENHANCING SAID ANOTHER ANALYST DELTA'S PILOTS EXPRESSED SURPRISE AT THE COMPANY'S MOVE GREGG HOLM VICE CHAIRMAN OF THE MASTER EXECUTIVE COUNCIL OF DELTA'S PILOTS UNION SAID THE PILOTS ARE MYSTIFIED AT HOW THE COMPANY HAS TRIVIALIZED OUR OFFER OF A ONEYEAR 5 PAY CUT FOR SOME PILOTS THAT AMOUNTS TO 65 MILLION IN ANNUAL SAVINGS WE VIEW IT AS AN OFFER THAT'S VERY SERIOUS HE ADDED THAT DELTA AND ITS PILOTS ARE STILL IN TALKS IT'S HARD TO TELL HOW MUCH YESTERDAY'S ANNOUNCEMENT WAS A BARGAINING MOVE ON MR ALLEN'S PART THE CHAIRMAN INTIMATED THAT THERE MIGHT BE SOME ROOM FOR DELTA'S PILOTS UNION TO MAKE A COUNTEROFFER WE NEVER SAY NEVER IN THIS BUSINESS IT'S A PAINFUL DECISION TO ANNOUNCE A FURLOUGH HE SAID BUT HE ADDED I DO NOT SEE A WAY TO AVOID A FURLOUGH OF SOME OF OUR PILOTS 9303300011 930330 OTC FOCUS NASDAQ INDEX EASES ON PROGRAM TRADES LATE IN DAY AS EARLY ADVANCES FADE BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PROGRAM TRADING LATE IN THE SESSION SENT OVERTHECOUNTER STOCKS MARGINALLY LOWER ERASING EARLIER GAINS OTC ISSUES WERE HIGHER FOR MOST OF THE DAY MIRRORING A STRONGER BOND MARKET OBSERVERS SAID TRADING WAS LETHARGIC WITH INVESTORS WAITING OUT THE QUARTER'S END AND THE RESULTS OF THE LABOR DEPARTMENT'S MARCH EMPLOYMENT REPORT TO BE RELEASED FRIDAY THE NASDAQ COMPOSITE INDEX LOST 078 POINT OR 011 TO END AT 68076 DECLINERS LED ADVANCERS 1309 TO 1281 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME WAS 163470000 SHARES COMPARED WITH 173170000 FRIDAY JERRY MULLINS EXECUTIVE VICE PRESIDENT AT DEAN WITTER REYNOLDS SAID I DON'T SEE ANY SELLING WITH A VENGEANCE HE ADDED THAT HE BELIEVES THE MARKET WILL SELL OFF FOR THE SHORT TERM THE TREASURY'S BENCHMARK 30YEAR BOND GAINED MORE THAN 5/8 POINT DEPRESSING ITS YIELD TO 689 ON THE BIG BOARD STOCKS SLID NEAR THE CLOSE WHEN STOCK INDEX FUTURES SLIPPED THE DOW JONES INDUSTRIAL AVERAGE GAINED 1512 POINTS OR 044 TO CLOSE AT 345510 AFTER COMING WITHIN STRIKING DISTANCE OF ITS ALLTIME HIGH EARLIER IN THE SESSION THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 141 POINTS OR 057 TO FINISH AT 24848 THE RUSSIANS DIDN'T GO OVER THE BRINK AGAIN AND I THINK THE BOND MARKET REACTED TO THAT SAID NELSON GOLD SENIOR VICE PRESIDENT AT INTERSTATE JOHNSON/LANE CORP THE RUSSIAN CONGRESS HASN'T MOVED TO IMPEACH PRESIDENT BORIS YELTSIN ALTHOUGH IT CLOSED A FOURDAY EMERGENCY SESSION BY STRIPPING HIM OF MORE POWER BONDS PRICES SWUNG A BIT YESTERDAY OPENING SIGNIFICANTLY HIGHER AND THEN LOSING GROUND AFTER THE COMMERCE DEPARTMENT RELEASED MIXED ECONOMIC NEWS AT 10 AM EST THE DEPARTMENT'S DATA SHOW THAT FEBRUARY'S RISE IN PERSONAL SPENDING WAS A BIT STRONGER THAN EXPECTED BUT A GAIN IN PERSONAL INCOME AND AN INCREASE IN NEW SINGLEFAMILY HOME SALES FOR THE MONTH WERE BOTH LOWER THAN PREDICTED MARKET WATCHERS SAID THE DEPARTMENT'S FIGURES MADE LITTLE IMPACT ON THE STOCK MARKET HOWEVER HEDI REYNOLDS MANAGING DIRECTOR OF NASDAQ TRADING AT MORGAN KEEGAN & CO SAID WINDOW DRESSING IN ANTICIPATION OF THE QUARTER'S END CONTINUES TO PLAY A ROLE WE HAD A LOT OF INSTITUTIONAL AND RETAIL BUSINESS TODAY WITH PEOPLE TRYING TO BUY THE STRONG STOCKS AND SELL THE WEAK ONES SHE SAID I THINK A LOT OF PEOPLE ARE STILL TRYING TO REPOSITION THEIR HOLDINGS BEFORE THE END OF THE QUARTER TECHNOLOGY ISSUES WERE MIXED THROUGHOUT THE DAY APPLE COMPUTER FELL 2 1/4 TO 51 THE WALL STREET JOURNAL REPORTED THAT MORE AND MORE ANALYSTS AND MONEY MANAGERS SAY THE COMPANY MIGHT BE HEADED FOR HARD TIMES SOME MONEY MANAGERS THINK THE CONCERN'S EARNINGS FOR THE SECOND QUARTER ENDING THIS MONTH MIGHT BE BELOW EXPECTATIONS DELL COMPUTER SHED 1 7/8 TO 34 3/4 ADOBE SYSTEMS DROPPED 1/4 TO 44 1/4 THE SOFTWARE COMPANY SIGNED AN AGREEMENT WITH HEWLETTPACKARD TO BUNDLE ADOBE PHOTOSHOP LIMITED EDITION SOFTWARE FOR THE MACINTOSH WITH THE HP SCANJET IIC GRAYSCALE/COLOR DESKTOP SCANNER ADOBE SYSTEMS ALSO UNVEILED AN EXPANDED VERSION OF THE ADOBE FONT FOLIO CDROM HEWLETTPACKARD JUMPED 3/4 TO 74 ON THE NEW YORK STOCK EXCHANGE GAINERS INCLUDED MICROCOMPUTER COMPONENTS MAKER INTEL WHICH WAS UP 1/8 TO 114 1/4 AND MICROSOFT WHICH WAS 3/8 STRONGER AT 87 MEDICALRELATED ISSUES WERE MOSTLY HIGHER AMGEN WAS UP 1/2 TO 35 BIOGEN ROSE 3/4 TO 28 1/4 CHIRON JUMPED 1 1/2 TO 47 3/4 GENZYME CLIMBED 1 5/8 TO 32 5/8 AND IMMUNEX A THERAPEUTIC IMMUNOLOGICAL PRODUCTS CONCERN EDGED UP 1 1/2 TO 45 1/2 CELLULAR COMMUNICATIONS ADDED 7/8 TO 36 3/8 THE COMPANY REPORTED A LOSS FOR 1992 OF THREE CENTS A SHARE AFTER THE PAYMENT OF PREFERRED DIVIDENDS IDB COMMUNICATIONS ALSO GAINED EDGING 1 3/4 HIGHER TO 26 1/2 AMONG TRANSPORTATION STOCKS ROADWAY SERVICES FINISHED 1 HIGHER AT 63 1/4 CENTRAL FREIGHT LINES SHAREHOLDERS YESTERDAY APPROVED A MERGER WITH ROADWAY JB HUNT A TRUCKING HOLDING COMPANY FELL 1 5/8 TO 19 3/4 TNT FREIGHTWAYS SHOT UP 1 1/2 TO 25 MESA AIRLINES ADDED 1 1/4 TO 19 1/2 COMAIR HOLDINGS ROSE 2 1/4 TO 37 1/2 AND EXPEDITORS INTERNATIONAL A PROVIDER OF FREIGHT FORWARDING AND CUSTOM HOUSE BROKERAGE SERVICES WAS OFF 1 1/2 AT 28 1/2 APPLIED SIGNAL TECHNOLOGY ADDED 1/4 TO FRIDAY'S INITIAL OFFERING PRICE TO CLOSE AT 7 1/4 THE COMPANY MAKES ELECTRONIC RECONNAISSANCE SYSTEMS LEADING THE MOSTACTIVE LIST WAS LTX CORP A COMPUTERCONTROLLED SYSTEMS COMPANY WHICH ADDED 5/8 TO 4 7/8 OTHER ACTIVELY TRADED ISSUES INCLUDED TELE COMMUNICATIONS INC A PROVIDER OF CABLE TELEVISION SERVICES WHICH FELL 1/8 TO 21 7/8 THE FOREST PRODUCTS SECTOR HAS BEEN HURT BY CONTINUED UNCERTAINTY ABOUT THE IMPACT OF THE COMING FOREST SUMMIT AND DECLINING LUMBER PRICES WILLAMETTE INDUSTRIES EASED 1 1/2 TO 38 9303300010 930330 WHO'S NEWS MICROGRAFX INC MICROGRAFX INC RICHARDSON TEXAS ROBERT S MILLER A MANAGEMENT CONSULTANT WAS ADDED TO THE BOARD OF THIS COMPUTER SOFTWARE COMPANY INCREASING THE NUMBER OF DIRECTORS TO FIVE 9303300009 930330 WHAT'S NEWS BUSINESS AND FINANCE STOCK MUTUAL FUNDS TOOK IN 87 BILLION FROM INVESTORS IN FEBRUARY DOWN SLIGHTLY FROM JANUARY'S RECORD LEVEL OFFICIALS AT MANY STOCK FUNDS SAY THIS MONTH'S SALES ARE RUNNING AHEAD OF FEBRUARY'S BOND FUNDS MEANWHILE TOOK IN 107 BILLION LAST MONTH UP SLIGHTLY FROM JANUARY STOCK AND BOND PRICES RALLIED WHILE THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIALS ROSE 1512 POINTS TO 345510 BUT OVERTHECOUNTER ISSUES SLIPPED THE PRICE OF THE BENCHMARK TREASURY BOND INCREASED MORE THAN 5/8 POINT UNITED AIRLINES PLANS TO SEEK AUTHORITY TO SERVE THE LUCRATIVE MARKET BETWEEN CHICAGO AND HEATHROW AIRPORT IN LONDON THE UAL UNIT'S REQUEST WILL TEST BRITAIN'S WILLINGNESS TO LIBERALIZE TRANSATLANTIC AIR TRAVEL DELTA AIR LINES IS RETIRING 28 JETS AND LAYING OFF 600 PILOTS IN ITS THIRD ROUND OF COSTCUTTING IN A YEAR THE LATEST MOVES WILL SAVE DELTA 100 MILLION A YEAR AND CUT ITS CAPACITY BY 1 AMERICAN EXPRESS'S NEW CEO HARVEY GOLUB FORCED OUT J TOMILSON HILL ONE OF THE TWO HEADS OF ITS LEHMAN BROTHERS INVESTMENT BANK UNIT GOLUB'S MOVE COULD HELP PAVE THE WAY FOR A PUBLIC OFFERING OF LEHMAN STOCK THE WHITE HOUSE SOUGHT TO SPEED ACTION ON ITS ECONOMICSTIMULUS BILL BY ASSURING CONSERVATIVE DEMOCRATS THAT THE ADMINISTRATION WOULD INSIST ON ITS LONGTERM DEFICITREDUCTION GOALS AS THE BUDGET PROCESS ADVANCES JWP'S FORMER PRESIDENT SAID HIS RESIGNATION LAST FALL WAS PROMPTED BY HIS DISCOVERY OF IMPROPER ACCOUNTING AT THE TECHNICAL SERVICES COMPANY JWP DENIED HIS ALLEGATIONS WHICH ARE CONTAINED IN A SHAREHOLDER LAWSUIT US TRADE OFFICIALS DELAYED FOR AT LEAST THREE WEEKS THE IMPOSITION OF SANCTIONS ON THE EC BUT SAID NEGOTIATIONS TO AVERT A TRADE WAR OVER GOVERNMENT CONTRACTS WILL BE DIFFICULT THE INSURANCE INDUSTRY ESTIMATED IT WILL PAY 510 MILLION IN CLAIMS FROM THE WORLD TRADE CENTER BOMBING THE AMOUNT INCLUDES CLAIMS FILED BY THE TRADE CENTER ITSELF AND BY ITS TENANTS CREDIT LYONNAIS POSTED A LOSS FOR 1992 AND SLASHED ITS DIVIDEND 57 AFTER RECORDING LARGE LOSSES RELATED TO THE FRENCH BANK'S INVOLVEMENT WITH ITALIAN FINANCIER GIANCARLO PARRETTI SUN MICROSYSTEMS SAID IT WILL WRITE A VERSION OF ITS OPERATING SYSTEM SOFTWARE FOR A COMPUTER BEING JOINTLY DEVELOPED BY APPLE IBM AND MOTOROLA MCI IS TALKING TO A NUMBER OF CABLE TELEVISION AND ENTERTAINMENT COMPANIES ABOUT POSSIBLE LINKS PERHAPS INCLUDING THE SALE OF A STAKE IN MCI MORE COMPANIES THAN EXPECTED ARE FILING CLAIMS UNDER THE AIRLINE INDUSTRY'S SETTLEMENT OF A PRICEFIXING SUIT MEANING THE CLAIMANTS WILL GET AS LITTLE AS HALF A CENT FOR EVERY DOLLAR IN FARES PAID OVER A 4 1/2YEAR PERIOD THE SUPREME COURT AGREED TO DECIDE IF OWNERS OF COPYRIGHTS ON MUSICAL WORKS MAY STOP OTHERS FROM PERFORMING PARODIES OF THEM FOR PROFIT BONDS LEHMAN BROTHERS TREASURY INDEX 501485 UP 3009 COMMODITIES OIL 2029 A BARREL OFF 12 CENTS DOW JONES FUTURES INDEX 12752 OFF 028 SPOT INDEX 12451 OFF 140 DOLLAR 11685 YEN UP 035 16263 MARKS OFF 00072 9303300008 930330 FOR YELTSIN BACKERS POLITICS IN RUSSIA IS FAR FROM USUAL GRASSROOTS SUPPORTERS BATTLE QUIRKY COPIERS AND THE PAST TO GET OUT PROBORIS VOTE BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL VORONEZH RUSSIA AT THE UNOFFICIAL YELTSIN CAMPAIGN HEADQUARTERS IN THIS DRAB INDUSTRIAL CITY KATERINA MORGUNOVA IS SCRAMBLING TO KEEP HER HEAD ABOVE WATER IT IS 11 PM AND THE 24YEAROLD MS MORGUNOVA IS FRANTICALLY TRYING TO PHOTOCOPY 2000 CRUDE PROYELTSIN FLIERS FOR THE NEXT DAY'S RALLY WHICH WILL KICK OFF THE CAMPAIGN FOR AN APRIL 25 NATIONWIDE VOTEOFCONFIDENCE IN PRESIDENT BORIS YELTSIN'S LEADERSHIP THE PHOTOCOPIER IS SPITTING OUT ONE BLANK PAGE FOR EVERY COPY THE HEADQUARTER'S TELEPHONE NUMBER IS SMUDGED ON EACH SHEET AND SHE IS HAVING TROUBLE FINDING VOLUNTEERS TO ASSIST HER ABOVE ALL WE NEED TO CIRCULATE FIVE MAIN POINTS IN OUR FLIERS AND SPEECHES SAYS MS MORGUNOVA THE PROBLEM IS WE HAVEN'T DECIDED YET WHAT THE FIVE POINTS SHOULD BE SUCH SCENES ARE BEING REPEATED ALL OVER RUSSIA HAVING NARROWLY SURVIVED AN OUSTER VOTE SUNDAY MR YELTSIN IS TRYING TO BREAK THE POLITICAL STALEMATE AND SOLIDIFY HIS POWER BY HOLDING AND WINNING THE SCHEDULED PLEBISCITE BUT TO DO SO THE PRESIDENT HAS TO RELY ON A RAGTAG GROUP OF MOSTLY YOUNG SUPPORTERS PIONEERS IN A GRASSROOTS ORGANIZATION THAT IS STILL STRANGE TO RUSSIA AFTER 70 YEARS OF ONEPARTY RULE PREOCCUPIED WITH THE POWER STRUGGLE BEING PLAYED OUT IN THE KREMLIN MR YELTSIN AND HIS ADVISERS HAVE PROVIDED LITTLE DIRECTION SO IT IS LEFT TO THE SUPPORTERS AND OFFICIALS TO FORGE THEIR OWN CAMPAIGN TO SAVE THE PRESIDENT IN A VOTE THAT IS LESS THAN A MONTH AWAY THE JOB ISN'T MADE ANY EASIER BY A THREAT FROM THE CONGRESS OF PEOPLE'S DEPUTIES TO HOLD A COMPETING REFERENDUM THE SAME DAY WITH A SEPARATE SET OF QUESTIONS IN VORONEZH YELTSIN HEADQUARTERS IS THE OFFICE OF VIKTOR DAVYDKIN NORMALLY MR DAVYDKIN THE PRESIDENT'S APPOINTED REPRESENTATIVE IN THE CITY IS RESPONSIBLE FOR ENSURING THAT MR YELTSIN'S DECREES ARE CARRIED OUT LOCALLY A FORMER PHYSICS PROFESSOR WHO PREFERS TENNIS AND THE SAXOPHONE TO POLITICS MR DAVYDKIN IS ANXIOUSLY PACING HIS SPACIOUS OFFICE A PROYELTSIN RALLY IS UNDER WAY OUTSIDE AND THE TELEVISION IN HIS OFFICE IS BROADCASTING A LIVE SESSION OF THE CONGRESS IN MOSCOW 400 MILES TO THE NORTH AS MR YELTSIN ADDRESSES A HOSTILE CONGRESS MR DAVYDKIN FLIPS OFF THE SWITCH I CAN'T WATCH THIS STUFF ANYMORE HE SAYS WHILE MR DAVYDKIN LIKE MANY RUSSIANS IS TIRED OF THE POLITICAL HARANGUES HE REMAINS LOYAL TO HIS CHIEF INDEED THE YELTSIN CAMPAIGN TECHNICALLY IS SUPPOSED TO BE ORGANIZED BY THE GOVERNOR WHOSE OFFICE IS DOWN THE HALL BUT THE POPULIST GOVERNOR'S LOYALTIES ARE SOMEWHAT SUSPECT SO MR DAVYDKIN HAS TAKEN IT UPON HIMSELF TO ORGANIZE THE VOTE CREATING THE UNOFFICIAL COMMITTEE FOR POPULAR SUPPORT OF THE PRESIDENT CONGRESS IS TRYING TO ELIMINATE MR YELTSIN'S TEAM OF PRESIDENTIAL REPRESENTATIVES WHICH COULD FORCE THE COMMITTEE TO FIND A NEW HOME MS MORGUNOVA THE COMMITTEE'S EXPERT ON TACTICS IS ONE OF MR DAVYDKIN'S AIDES SHE GOT THE COMMITTEE'S TACTICAL JOB LARGELY BY DEFAULT HAVING CAMPAIGNED LOCALLY FOR MR YELTSIN IN THE UNPRECEDENTED 1991 PRESIDENTIAL ELECTION SHE IS THE ONLY ONE AROUND WITH HANDSON EXPERIENCE IN GRASSROOTS POLITICS THE CONTRAST TO THAT PERIOD IS ALARMING FOR YELTSIN'S BACKERS TWO YEARS AGO MR YELTSIN'S AIDES IN MOSCOW WERE EXTREMELY WELL ORGANIZED THEY PRODUCED REAMS OF CAMPAIGN MATERIALS AND CIRCULATED THEM AROUND THE COUNTRY IN VORONEZH MR YELTSIN WON 57 OF THE VOTE EXACTLY WHAT HE PULLED IN NATIONWIDE THIS TIME MOSCOW HASN'T TOLD US A THING SAYS MS MORGUNOVA SHARING THE OFFICE IS NIKOLAI MOROZOV A 44YEAROLD FORMER ELECTRICIAN AND TREE FELLER MR MOROZOV HAS TAKEN UP THE MOSTLY SELFAPPOINTED TASK OF IDEOLOGY CHIEF FOR THE CAMPAIGN HE CHURNS OUT FLIERS NEWS RELEASES AND ARTICLES THAT HE FUNNELS TO THE PROYELTSIN PRESS SOMETIMES HE IS THE CAMPAIGN ART DIRECTOR ON A RECENT AFTERNOON MR MOROZOV SITS ACROSS THE TABLE FROM VLADIMIR KUPTSOV AN ARTIST WHO MR MOROZOV WANTS TO MAKE PROYELTSIN FLIERS AND POSTERS AND PASTE THEM UP ALL OVER TOWN AFTER A SURPRISINGLY LENGTHY DEBATE OVER WHAT KIND OF GLUE TO USE MR KUPTSOV PROVES TO BE AN EAGER RECRUIT EVEN OFFERING TO DRAW SOME CARTOONS FOR THE CAUSE I CAN ORGANIZE SOME PEOPLE TOO SAYS MR KUPTSOV LIKE POETS I CAN GET ALL THE POETS OUT POETS WILL HELP BUT OF MORE VALUE WOULD BE A FEW WELLHEELED BUSINESSMEN TO BANKROLL THE CAMPAIGN FORTUNATELY FOR MR YELTSIN HE CAN COUNT AMONG HIS MOST ACTIVE SUPPORTERS MANY OF RUSSIA'S PIONEER CAPITALISTS FOR THE FIRST TIME IN RUSSIA'S HISTORY PRIVATE MONEY COULD HELP TIP THE POLITICAL BALANCE NIKOLAI ALYOKHIN OWNS AND RUNS SAN LTD ONE OF VORONEZH'S MOST PROFITABLE PRIVATE TRADING COMPANIES A BULLDOG OF A MAN IN A SHINY BLACK SUIT MR ALYOKHIN WAS JAILED FOR TWO MONTHS DURING THE GORBACHEV YEARS FOR SPECULATION SOON AFTERWARD HE THREW IN HIS LOT WITH THE DEMOCRATS AND FREEMARKET REFORMERS DURING THE RALLY OVER THE WEEKEND OF SOME 1500 YELTSIN SUPPORTERS MR ALYOKHIN SHOWS HIS VALUE TO THE CAUSE HE TRUCKS IN NEARLY ALL OF HIS 100 EMPLOYEES TO THE DEMONSTRATION DONNING A TOP HAT HE GIVES AN IMPASSIONED SPEECH TO THE CROWD LEADING THE PEOPLE IN THE PERFUNCTORY CHANT YELTSIN YELTSIN THOUGH MANY LOCALS STILL VIEW MR ALYOKHIN AS AN UNSAVORY PROFITEER HE IS A WILLING SOLDIER TO MR YELTSIN'S CAUSE HE ALREADY HAS TRANSFERRED 100000 RUBLES A LARGE SUM HERE THOUGH IT TRANSLATES INTO JUST 150 TO A FUND SET UP TO SUPPORT MR YELTSIN'S PLEBISCITE AND HE PLANS TO USE HIS CLOUT AND MONEY TO GET CRITICAL TV TIME AND NEWSPAPER COVERAGE ACROSS TOWN IS GEORGY KOSTIN DIRECTOR OF THE VORONEZH MECHANICAL PLANT TO MR YELTSIN'S SUPPORTERS HERE MR KOSTIN IS THE BOGEYMAN HE IS AN ACTIVE MEMBER OF BOTH THE COMMUNIST PARTY AND THE NATIONAL SALVATION FRONT AN AGGRESSIVE NEOCOMMUNIST NATIONALIST PARTY THAT MR YELTSIN TRIED UNSUCCESSFULLY TO OUTLAW LAST YEAR MR KOSTIN IS KNOWN AS THE MAN WHO WOULD HAVE TAKEN OVER IN VORONEZH IF THE 1991 MOSCOW COUP HAD SUCCEEDED THE 58YEAROLD MR KOSTIN IS A RESPECTED FACTORY DIRECTOR AND A FEARED POLITICAL FIGURE WITHIN REACH OF THE DESK CHAIR IN HIS OFFICE ARE 51 VOLUMES OF LENIN'S COLLECTED WORKS MR KOSTIN ALSO IS PREPARING TO GET OUT THE VOTE AGAINST MR YELTSIN HE PROMISES THAT VIRTUALLY ALL OF HIS 18000 EMPLOYEES AND THEIR FAMILIES WILL VOTE AS HE DIRECTS THERE ARE 19 MILLION VOTERS IN THE CITY WE HAVE THE POWER OF INFLUENCE OVER THESE PEOPLE MR KOSTIN SAYS EVERY FACTORY DIRECTOR WHO IS A REAL DIRECTOR WILL DO THE SAME WITH THE OPPOSITION BEGINNING TO COALESCE MR DAVYDKIN THE PRESIDENT'S REPRESENTATIVE IS SCRAMBLING TO BUILD COALITIONS AMONG VORONEZH'S DEMOCRATIC AND CENTRIST GROUPS DURING A TRYING MEETING WITH 10 LOCAL PARTY LEADERS HE HASHES OUT A STATEMENT THAT ALL EVENTUALLY SIGN THE LEADERS AGREE TO STOP SNIPING AT EACH OTHER UNTIL AFTER THE PLEBISCITE IN THEIR RESOLUTION THEY PLEDGE SUPPORT FOR THE PRESIDENCY WITHOUT EVEN MENTIONING MR YELTSIN'S NAME IT IS A CONCESSION TO THE LOCAL CHIEF OF THE PARTY OF VICE PRESIDENT ALEXANDER RUTSKOI WHO HAS DISTANCED HIMSELF FROM MR YELTSIN AT THE RALLY MR RUTSKOI'S MAN DENIS KUZMIN CLIMBS THE PODIUM AND DELIVERS A SPEECH LAMBASTING PARLIAMENT THEN APPARENTLY CAUGHT UP IN THE DRAMA HE ABANDONS PARTY DISCIPLINE AND BEGINS CHANTING YELTSIN YELTSIN THE CROWD JOINS IN MR DAVYDKIN STANDING ON THE SIDELINES SHAKES HIS HEAD WEARILY AND SMILES I THINK YELTSIN WILL WIN THE VOTE HE SAYS BUT NO ONE KNOWS WHAT HAPPENS NEXT 9303300007 930330 WHAT'S NEWS WORLDWIDE RUSSIAN LAWMAKERS VOTED TO UNDERCUT YELTSIN'S POWERS STILL FURTHER AT THE CLOSE OF A FOURDAY EMERGENCY SESSION DEPUTIES INTENSIFIED THEIR ASSAULT ON THE PRESIDENT WHO NARROWLY SURVIVED AN IMPEACHMENT VOTE OVER THE WEEKEND THE CONGRESS PASSED SEVERAL LAWS THAT AT LEAST ON PAPER WOULD REDUCE YELTSIN TO A VIRTUAL FIGUREHEAD THE LEGISLATURE VOTED TO COOPT THE PRESIDENT'S APRIL PLEBISCITE BY CALLING FOR A SIMULTANEOUS REFERENDUM PARLIAMENT SPEAKER KHASBULATOV MEANWHILE DISTANCED HIMSELF FROM A COMPROMISE HE BROKERED WITH YELTSIN PROCLAIMING THAT CONGRESS HAD BLOCKED A COUP RUSSIA ANNOUNCED IT IS TEMPORARILY SUSPENDING THE WITHDRAWAL OF TROOPS FROM THE BALTIC STATES CITING INSUFFICIENT HOUSING FOR THE RETURNING SOLDIERS HEALTH ORGANIZATIONS PRAISED THE BROAD GOALS OF THE CLINTON HEALTH PLAN DURING A PUBLIC HEARING CONDUCTED BY THE ADINISTRATION'S HEALTH CARE TASK FORCE BUT THE HEALTH GROUPS TOOK ISSUE WITH MANY OF THE MEASURES BEING CONSIDERED MOST OF THE GROUPS EXPRESSED OPPOSITION TO GOVERNMENT CONTROLS ON MEDICAL FEES SOCIALIST PRESIDENT MITTERRAND SELECTED MODERATE GAULLIST EDOUARD BALLADUR TO BE FRANCE'S PRIME MINISTER THE MOVE CAME ONE DAY AFTER RIGHTISTS SCORED A LANDSLIDE IN LEGISLATIVE ELECTIONS BALLADUR A FORMER FINANCE MINISTER WHO BACKS EUROPEAN INTEGRATION COULD NAME A NEW GOVERNMENT AS SOON AS TOMORROW GOV CUOMO OF NEW YORK IS EMERGING AS THE FRONTRUNNER TO BE CLINTON'S FIRST NOMINEE TO THE SUPREME COURT A FINAL DECISION HASN'T BEEN REACHED AND OTHER NAMES ARE BEING CONSIDERED BUT PEOPLE CLOSE TO THE DELIBERATIONS SAY A STRONG CASE WOULD HAVE TO BE MADE AGAINST CUOMO FOR HIM NOT TO GET THE NOMINATION SEN NUNN SUGGESTED A COMPROMISE ON HOMOSEXUALS IN THE MILITARY AS HIS ARMED SERVICES COMMITTEE OPENED HEARINGS ON THE ISSUE THE GEORGIA DEMOCRAT SAID A TEMPORARY POLICY PROHIBITING RECRUITERS FROM ASKING ENLISTEES ABOUT THEIR SEXUAL ORIENTATION MIGHT BE A PERMANENT ALTERNATIVE TO AN OUTRIGHT LIFTING OF THE BAN ON HOMOSEXUALS THE SECURITY COUNCIL RETAINED A BAN AGAINST IRAQI OIL EXPORTS AMID NEW REPORTS THAT IRAQ IS SELLING OIL ACROSS ITS BORDERS THE STATE DEPARTMENT MEANWHILE SAID THAT IT HAD EVIDENCE THAT IRAQ RECENTLY SHIPPED OIL TO IRAN IN VIOLATION OF UN RESOLUTIONS A TOP US DEFENSE AIDE TOLD OFFICIALS OF NATO AND THE FORMER SOVIET UNION IT WOULD CUT THE NUMBER OF US TROOPS IN EUROPE BY NEARLY HALF TO ABOUT 100000 A SHARPER REDUCTION THAN WAS PLANNED BY THE BUSH ADMINISTRATION DEPUTY DEFENSE SECRETARY PERRY ALSO STRESSED CLINTON'S COMMITMENT TO SUPPORT A PEACEKEEPING FORCE IN BOSNIA THE US PLANS TO REVIVE ITS EFFORT THIS WEEK TO GET UN SECURITY COUNCIL APPROVAL FOR THE ENFORCEMENT OF AN EXISTING NOFLY ZONE OVER BOSNIA SECRETARY OF STATE CHRISTOPHER SAID MEANWHILE A UN CONVOY TRANSPORTED MORE THAN 2000 MUSLIMS FROM THE BESIEGED BOSNIAN TOWN OF SREBRENICA TO TUZLA A MUSLIM STRONGHOLD ARAB STATES PUT OFF A DECISION ON RESUMING TALKS WITH ISRAEL SAYING THEY NEED TIME TO DISCUSS WITH US OFFICIALS CERTAIN CONDITIONS FOR GETTING THE PEACE PROCESS BACK ON TRACK MEANWHILE AN ISRAELI AND A PALESTINIAN WERE WOUNDED IN SEPARATE INCIDENTS IN THE OCCUPIED GAZA STRIP AFTER THE ISRAELI ARMY SEALED OFF THE AREA TO CURB VIOLENCE ITALY'S GOVERNMENT APPEARED NEAR COLLAPSE AFTER A SOCIALIST LEADER THREATENED TO WITHDRAW SUPPORT FROM PREMIER AMATO'S COALITION PRESIDENT SCALFARO SUMMONED HEADS OF THE SENATE AND CHAMBER OF DEPUTIES FOR TALKS TODAY ALSO A KEY REFORMER QUIT THE DOMINANT CHRISTIAN DEMOCRATS CITING THE PARTY'S FAILURE TO STEM CORRUPTION MEXICO'S PRESIDENT SALINAS ASKED THE HEAD OF THE RULING INSTITUTIONAL REVOLUTIONARY PARTY TO RESIGN AND TAKE ANOTHER POST FOLLOWING A POLITICAL CAMPAIGNFINANCING SCANDAL THE DISMISSAL COMES AFTER RECENT DISCLOSURES THAT THE PARTY CHIEF APPEALED FOR MULTIMILLIONDOLLAR POLITICAL DONATIONS AT A DINNER ATTENDED BY BUSINESS EXECUTIVES SALVADORAN PRESIDENT CRISTIANI SAID HE WANTED MORE TIME TO MEET UN DEMANDS FOR A PURGE OF EL SALVADOR'S TOP ARMY CHIEFS ARMY LEADERS HAVE CONDEMNED BOTH THE PURGE AND A RECENT UN REPORT THAT SAID THE ARMED FORCES WERE GUILTY OF ATROCITIES 9303300006 930330 INTERNATIONAL BENETTON NET INCOME RISES 12 MILAN BENETTON GROUP SPA AN ITALIAN CLOTHING RETAILER SAID IT BEAT AN INDUSTRYWIDE TREND LAST YEAR POSTING A 12 RISE IN CONSOLIDATED NET INCOME ON A 91 INCREASE IN SALES NET INCOME TOTALED 1847 BILLION LIRE 1156 MILLION COMPARED WITH 1648 BILLION LIRE A YEAR EARLIER REVENUE TOTALED 2512 TRILLION LIRE UP FROM 2303 TRILLION LIRE THE COMPANY PROPOSED AN INCREASE IN ITS ANNUAL DIVIDEND PAYMENT 17 TO 350 LIRE FROM 300 LIRE 9303300005 930330 ECONOMY CLINTON MOVES TO SPEED ACTION ON STIMULUS BILL ASSURANCE ON DEFICIT GOALS ENDS SENATE OPPOSITION BY SOME CONSERVATIVES BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE SOUGHT TO EXPEDITE ACTION ON ITS ECONOMICSTIMULUS BILL BY ASSURING CONSERVATIVE DEMOCRATS THAT THE ADMINISTRATION WOULD INSIST ON ITS LONGTERM DEFICITREDUCTION GOALS AS THE BUDGET PROCESS ADVANCES IN A LETTER RELEASED YESTERDAY PRESIDENT CLINTON TOLD SENATORS THAT HE WOULD DEMAND THE BUDGET RECONCILIATION BILL THIS SUMMER MEET THE FIVEYEAR DEFICITCUTTING TARGETS MORE THAN 500 BILLION SET IN THE PENDING BUDGET RESOLUTION IF THAT LEGISLATION FALLS SHORT OF THE DEFICITREDUCTION GOAL THE PRESIDENT SAID I WILL SEND A PROPOSAL TO CONGRESS TO MAKE UP THE BUDGETARY SHORTFALLS FROM THE COMMITTEES THAT FAILED TO MEET THEIR TARGETS LOUISIANA SEN JOHN BREAUX WHO NEGOTIATED ON BEHALF OF FELLOW SOUTHERN DEMOCRATS CALLED MR CLINTON'S STATEMENT REAL PROGRESS AND PREDICTED BROAD SUPPORT FROM HIS COLLEAGUES FOR THE BILL BUT SEN BOB KERREY D NEB ANNOUNCED HIS CONTINUED OPPOSITION TO THE MEASURE AND IN A FIRST TEST LAST NIGHT DEMOCRATS NARROWLY LOST A MOTION TO TABLE A REPUBLICAN AMENDMENT SEEKING A MODEST 104 MILLION CUT FROM COMMUNITY DEVELOPMENT FUNDS IN THE PACKAGE THE DEFEAT LEFT THE LEADERSHIP SCRAMBLING TO SHIFT A FEW VOTES THIS MORNING FOR ALL THE IMPORTANCE ATTACHED TO THE PRESIDENT'S LETTER IT WAS DIFFICULT TO SEE THAT THE WHITE HOUSE MADE ANY SIGNIFICANT CONCESSIONS MR CLINTON STOPPED FAR SHORT OF PROMISING TO VETO FOR EXAMPLE A RECONCILIATION BILL THAT FAILS TO MEET THE FIVEYEAR TARGETS INSTEAD THE LETTER APPEARED TO BE A POLITICAL EXERCISE DESIGNED TO ENABLE CONSERVATIVES TO EXTRICATE THEMSELVES FROM WHAT HAD BECOME AN UNTENABLE POSITION THE ALMOST 163 BILLION STIMULUS BILL ALREADY APPROVED BY THE HOUSE ALSO WOULD RELEASE AN ADDITIONAL 32 BILLION FROM FEDERAL TRUST FUNDS FOR HIGHWAY AND PUBLIC WORKS PROJECTS LESS THAN HALF OF THE TOTAL DOLLARS WOULD BE SPENT BEFORE THE CURRENT FISCAL YEAR ENDS SEPT 30 BUT MR BREAUX AND SUCH FELLOW CONSERVATIVES AS SEN DAVID BOREN D OKLA HAD PROPOSED TO FURTHER DELAY THE EXPENDITURES UNTIL THE DEFICITREDUCTION PLAN IS IMPLEMENTED THIS SUMMER WHEN IT CAME UP SHORT LAST WEEK THE SAME FACTION FOUND ITSELF CAUGHT IN A STALEMATE WITH SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD WHO REFUSED TO RELENT AS A DEFENDER OF THE PRESIDENT'S PROGRAM MR CLINTON'S LETTER NEGOTIATED BY BUDGET DIRECTOR LEON PANETTA AND WHITE HOUSE LIAISON HOWARD PASTER AIMED TO SOLIDIFY PARTY RANKS AND AVOID FURTHER EMBARRASSMENT OF SOUTHERN ALLIES WHOSE VOTES WOULD BE NEEDED ON MORE NETTLESOME ISSUES IN THE FUTURE WITH THE AGREEMENT IN HAND THE DEMOCRATIC LEADERSHIP TURNED LAST NIGHT TO THE REPUBLICANS WHO HAVE FLUCTUATED BETWEEN THREATENING A FILIBUSTER AND ASKING FOR AN OPPORTUNITY TO PROPOSE ORDERLY CHANGES TO THE PACKAGE MR BYRD HAS SOUGHT TO USE HIS PARLIAMENTARY SKILLS TO HOLD THE GOP AT BAY UNTIL AN AGREEMENT CAN BE REACHED ON THE NUMBER OF AMENDMENTS AND THE TIME TO BE CONSUMED IN HANDLING THEM BUT THE DEFEAT ON THE TABLING MOTION ILLUSTRATES HIS STILL SHAKY COMMAND OF SUPPORT FOR THE BILL THE MOTION IS TO BE RAISED AGAIN THIS MORNING AND THOUGH DEMOCRATS ARE EAGER TO COMPLETE ACTION LATE TODAY OR TOMORROW REPUBLICANS MAY BE EMBOLDENED NOW TO DELAY THE PROCESS FURTHER THE SPENDING BILL WHICH WILL ADD TO THIS YEAR'S DEFICIT HAS PROVOKED STRONG OPPOSITION FROM ALL SEGMENTS IN THE GOP THERE WEREN'T ANY DEFECTIONS ON THE TABLING VOTE AND THE MINORITY APPEARS TO HAVE THE VOTES TO KILL ANY MOTION TO INVOKE CLOTURE IT'S NOT A QUESTION OF AGREEING TO A GATE KEEPER SAID SEN JOHN DANFORTH R MO WE FUNDAMENTALLY BELIEVE THIS PROGRAM IS WRONG IN A SOMETIMES TESTY EXCHANGE WITH MINORITY LEADER ROBERT DOLE MR BYRD DEFENDED HIS GROUND I'VE BEEN WEARING MY FLAK JACKET EVERY DAY EXPECTING THE REAL BULLETS TO START FIRING SAID THE WEST VIRGINIA DEMOCRAT ALLUDING TO MR DOLE'S OWN WARNING LAST WEEK THAT THE BUDGET WARS ARE ONLY NOW BEGINNING WITH THE STIMULUS BILL SOON AFTERWARD WITH HIS FIRST DEFEAT THE SAME WORDS WOULD COME BACK TO HAUNT THE CHAIRMAN FOR THEIR PART REPUBLICANS WAGED AN UNSPOKEN CAMPAIGN TO EXACERBATE TENSIONS BETWEEN THE WEST VIRGINIAN AND HIS SUCCESSOR IN THE DEMOCRATIC LEADERSHIP MAJORITY LEADER GEORGE MITCHELL MINORITY WHIP ALAN SIMPSON DENIED ANY INTENTION OF EMBARRASSING MR BYRD BUT THE WYOMING REPUBLICAN ARGUED THAT THE CHAIRMAN'S STRONGARM PARLIAMENTARY TACTICS PREEMPTED WHAT HAS BEEN HISTORICALLY THE LEADERSHIP'S ROLE WHENEVER THIS WAS DONE IT WAS DONE BY THE LEADERSHIP SAID MR SIMPSON I HAVE NOT SEEN IT DONE BY A COMMITTEE CHAIRMAN IN THE PAST 9303300004 930330 INTERNATIONAL BRIEF SUN ALLIANCE GROUP PLC FIRM'S DANISH UNIT BUYS HAFNIA'S INSURANCE INTERESTS BRITAIN'S LARGEST NONLIFE INSURER SUN ALLIANCE GROUP PLC SAID ITS DANISH UNIT HAS AGREED TO PAY ALMOST 13 BILLION DANISH KRONER 207 MILLION FOR HAFNIA HOLDING AS'S DANISH INSURANCE INTERESTS THE AGREEMENT REACHED AFTER A 27HOUR ROUND OF TALKS LAST WEEKEND AT HAFNIA'S COPENHAGEN HEADQUARTERS BRINGS DENMARK'S INSURANCE CRISIS A STEP CLOSER TO RESOLUTION BY EFFECTIVELY MERGING HAFNIA'S DOMESTIC INSURANCE OPERATIONS WITH SUN ALLIANCE'S SMALL DANISH SUBSIDIARY CODAN THE TWO COMPANIES TOGETHER ACCOUNT FOR A LEADING 18 OF THE DANISH NONLIFE INSURANCE MARKET AND WILL RANK AS DENMARK'S THIRDLARGEST LIFE INSURER WITH A 12 SHARE AFTER THE SALE DEBTRIDDEN HAFNIA WILL CONTINUE TO WIND UP ITS AFFAIRS BY TRYING TO SELL ITS FEW REMAINING ASSETS THESE COMPRISE SUBSTANTIAL STAKES IN TWO RIVAL SCANDINAVIAN INSURANCE COMPANIES FORSAKRINGS AB SKANDIA AND BALTICA HOLDING AS AS WELL AS ITS UK INSURANCE SUBSIDIARY ECONOMIC WHICH WASN'T INCLUDED IN THE CODAN DEAL 9303300003 930330 BUSINESS BRIEF VIACOM INC COMPANY AGREES TO PURCHASE FM STATION FROM WESTWOOD VIACOM INTERNATIONAL INC NEW YORK AGREED TO ACQUIRE FM RADIO STATION KQLZ IN LOS ANGELES FROM WESTWOOD ONE INC WESTWOOD SAID THE VIACOM INC UNIT WILL PAY 40 MILLION FOR THE STATION WHICH PLAYS ALBUMORIENTED ROCK WHILE WESTWOOD ONE WILL RETAIN THE STATION'S WORKING CAPITAL AND OWNERSHIP OF THE BUILDING CURRENTLY OCCUPIED BY THE STATION VIACOM ALREADY OWNS 13 RADIO STATIONS INCLUDING AN FM RIVAL IN LOS ANGELES KYSR THE DEAL SUBJECT TO FEDERAL COMMUNICATIONS COMMISSION APPROVAL IS THE FIRST IN LOS ANGELES THE COUNTRY'S LARGEST RADIO MARKET TO TAKE ADVANTAGE OF THE FCC'S NEW DUOPOLY RULES ALLOWING ONE COMPANY TO OWN TWO RADIO STATIONS ON THE SAME SPECTRUM IN ONE MARKET ONCE WESTWOOD ONE PRIMARILY A RADIO NETWORK COMPANY COMPLETES THE SALE OF KQLZ AND A PREVIOUSLY ANNOUNCED SALE OF NEW YORK'S WYNYFM FOR 50 MILLION IT WILL BE OUT OF THE STATION OWNERSHIP BUSINESS WESTWOOD SAID THE TWO SALES WILL REDUCE REVENUE BY 16 BASED ON FISCAL YEAR 1992 FIGURES OF 1377 MILLION THE SALES ALSO WILL ELIMINATE MORE THAN 50 OF THE COMPANY'S TOTAL PUBLIC AND NONPUBLIC DEBT OF ABOUT 170 MILLION 9303300002 930330 HIGH COURT TO DECIDE WHETHER PARODIES OF MUSIC WORKS VIOLATE COPYRIGHT LAWS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER OWNERS OF COPYRIGHTS ON MUSICAL WORKS MAY STOP OTHER PEOPLE FROM PERFORMING PARODIES OF THE COMPOSITIONS FOR PROFIT THE JUSTICES SAID THEY WOULD HEAR AN APPEAL BY THE RAP GROUP 2 LIVE CREW WHICH A LOWERCOURT RULING SAID VIOLATED FEDERAL COPYRIGHT LAW WHEN IT RECORDED AND DISTRIBUTED A PARODY OF THE ROY ORBISON HIT OH PRETTY WOMAN THE CASE COULD HAVE A BROAD IMPACT ON THE POPULAR MUSIC BUSINESS AND ON POLITICAL SATIRE IF THE SUPREME COURT ADOPTS THE LOWER COURT'S VIEW THAT COMMERCIAL MUSICAL PARODY DOESN'T QUALIFY FOR AN EXCEPTION TO COPYRIGHT LAW HUNDREDS OF PERFORMERS COULD BE SILENCED ACCORDING TO A BRIEF FILED WITH THE HIGH COURT ON BEHALF OF THE CAPITOL STEPS A SATIRIC WASHINGTON SINGING GROUP AND POLITICAL COMEDIAN MARK RUSSELL COPYRIGHT OWNERS MAY REFUSE PERMISSION TO REPRODUCE OR CLOSELY IMITATE A MUSICAL WORK AND IF THEY ALLOW SUCH USE THEY MAY CHARGE A FEE BUT THERE IS AN EXCEPTION FOR FAIR USE OF COPYRIGHTED MATERIAL IN CRITICISM COMMENT NEWS REPORTING TEACHING OR SCHOLARSHIP COURTS HAVE EXTENDED THE EXCEPTION IN SOME INSTANCES TO ALLOW PARODY AS A FORM OF CRITICISM OR COMMENT BUT THE US APPEALS COURT IN CINCINNATI SAID 2 LIVE CREW'S PARODY OF OH PRETTY WOMAN DIDN'T QUALIFY COPYRIGHT LAW SAYS APPLICATION OF THE FAIRUSE EXCEPTION DEPENDS IN PART ON WHETHER A REPRODUCTION IS COMMERCIAL IN NATURE AND AFFECTS THE POTENTIAL MARKET FOR THE ORIGINAL WORK THE APPEALS COURT CONCLUDED THAT THE BLATANTLY COMMERCIAL PURPOSE OF THE 2 LIVE CREW PARODY PREVENTED IT FROM BEING A FAIR USE IN CONTRAST THE APPEALS COURT SAID AN IDENTICAL USE OF THE COPYRIGHTED WORK IN THIS CASE AT A PRIVATE GATHERING ON A NOTFORPROFIT BASIS PROBABLY WOULD BE CONSIDERED A FAIR USE THE APPEALS COURT REINSTATED A LAWSUIT AGAINST THE GROUP THAT HAD BEEN FILED BY ACUFFROSE MUSIC INC THE OWNER OF THE COPYRIGHT TO OH PRETTY WOMAN LAWYERS FOR 2 LIVE CREW NOTED THAT THE RULING WAS SIGNIFICANT BECAUSE NASHVILLE TENN A POPULAR MUSIC MECCA IS WITHIN THE CINCINNATI COURT'S JURISDICTION THESE LAWYERS ALSO POINTED OUT THAT THE COURT'S INTERPRETATION OF FAIR USE IS NARROWER THAN THAT OF FEDERAL APPEALS COURTS WHOSE JURISDICTIONS INCLUDE NEW YORK AND LOS ANGELES TWO OTHER MAJOR MUSIC CENTERS THE 2 LIVE CREW PARODY MIMICS THE MUSICAL STYLE OF THE ORIGINAL BUT SUBSTITUTES ITS OWN LYRICS SUCH AS BIG HAIRY WOMAN YOU NEED TO SHAVE THAT STUFF THE GROUP WHOSE MEMBERS ARE BLACK HAS SAID THAT LIKE MANY OTHER RAP SONGS ITS PARODY WAS INTENDED TO SATIRIZE WHITECENTERED POPULAR MUSIC IN THEIR SEPARATE BRIEF SUPPORTING 2 LIVE CREW THE CAPITOL STEPS AND MARK RUSSELL SAID THAT BECAUSE THEY AIM TO BE EXTREMELY TOPICAL IN THEIR PERFORMANCES THEY DON'T HAVE TIME EVEN TO SEEK PERMISSION TO USE PARODIES OF WELLKNOWN MUSICAL WORKS A DECISION IN THE 2 LIVE CREW CASE ISN'T EXPECTED UNTIL NEXT YEAR CAMPBELL VS ACUFFROSE MUSIC INC IN OTHER ACTIONS YESTERDAY THE HIGH COURT 9303300001 930330 WORLD TRADE CENTER BLAST IS ESTIMATED TO COST INSURERS ABOUT 510 MILLION BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE INSURANCE INDUSTRY WILL PAY AN ESTIMATED 510 MILLION FOR DAMAGES CAUSED BY THE WORLD TRADE CENTER EXPLOSION THE ESTIMATE BY THE AMERICAN INSURANCE SERVICES GROUP THE OFFICIAL INSURANCE INDUSTRY SCOREKEEPER FOR DISASTER LOSSES INCLUDES CLAIMS SUBMITTED ON THE TRADE CENTER'S OWN POLICY AS WELL AS CLAIMS FILED BY TENANTS WITH THEIR OWN INSURERS THE FIGURE DOES NOT BREAK DOWN LOSSES SUSTAINED BY INDIVIDUAL INSURANCE COMPANIES THE FIGURE INCLUDES CLAIMS PAID OUT ON LIFE INSURANCE WORKERS COMPENSATION INSURANCE AND HEALTH INSURANCE SIX PEOPLE DIED IN THE EXPLOSION AND A NUMBER OF TENANTS WERE HOSPITALIZED FOR SMOKE INHALATION THE FIGURE ALSO DOES NOT BREAK DOWN WHICH COMPANIES INCURRED LOSSES EARLIER NEW YORK CITY'S COMPTROLLER ELIZABETH HOLTZMAN SAID THE BLAST WOULD COST 1 BILLION BUT HER FIGURE INCLUDED LOSSES NOT ABSORBED BY INSURANCE COMPANIES SUCH AS FORFEITED TAX REVENUES AND UNINSURED LOSSES COMPARED WITH THE 165 BILLION LOSS ON LAST SUMMER'S HURRICANE ANDREW THE LOSS ON THE EXPLOSION IS SMALL BUT CONSIDERING THE AFFECTED AREA ONLY COVERED A FEW CITY BLOCKS THE LOSS IS ENORMOUS LAST YEAR'S FLOOD IN CHICAGO'S LOOP WHICH VIRTUALLY SHUT DOWN 96 BUILDINGS IN THE CENTRAL BUSINESS DISTRICT FOR A WEEK COST INSURERS 300 MILLION IN BOTH CHICAGO AND NEW YORK INSURERS HAD TO PAY CLAIMS ON INCOME LOST BY BUSINESSES FORCED TO SHUT DOWN BUT IN CHICAGO THE OTHER COSTS MOSTLY INVOLVED CLEANING UP FLOODING IN BUILDING BASEMENTS IN NEW YORK THE TRADE CENTER SUFFERED STRUCTURAL DAMAGE AND SMOKE AND SOOT DESTROYED FURNITURE AND COMPUTERS IN INDIVIDUAL OFFICES STEVE GOLDSTEIN OF THE INSURANCE INFORMATION INSTITUTE IN NEW YORK SAID THE COSTS WOULD HAVE BEEN MUCH HIGHER IF THE BLAST HADN'T OCCURRED ON A FRIDAY WHICH GAVE THE COMMODITIES EXCHANGES AND OTHER BUSINESSES A WEEKEND TO RECOVER ANOTHER FACTOR IN HOLDING DOWN COSTS WAS THE EASE IN WHICH BUSINESSES WERE ABLE TO QUICKLY REOPEN AT OTHER SITES LAST WEEK BUSINESSES BEGAN MOVING BACK MR GOLDSTEIN SAID SOME INSURERS MIGHT SEEK TO RECOVER SOME OF THEIR COSTS BY PROVING THE PORT AUTHORITY OF NEW YORK & NEW JERSEY WHICH OPERATES THE TRADE CENTER WAS NEGLIGENT BUT NO LAWSUITS HAVE BEEN FILED YET HE SAID PORT AUTHORITY OFFICIALS HAVE MAINTAINED THAT ANY LAWSUITS WOULD BE FRIVOLOUS IN ADDITION NO LAWSUITS HAVE BEEN FILED BY FAMILIES OF PEOPLE WHO DIED IN THE EXPLOSION PHILADELPHIABASED CIGNA CORP PROVIDES A GOOD SHARE OF THE PROPERTY COVERAGE FOR THE PORT AUTHORITY BUT THE COMPANY HAS SAID THE MOST IT COULD LOSE IS 20 MILLION THAT'S BECAUSE ITS EXPOSURE IS HEAVILY REINSURED A SPOKESMAN SAID YESTERDAY THE COMPANY DOESN'T YET KNOW THE SIZE OF ITS ULTIMATE LOSS THE COST OF THE TRADE CENTER BLAST FOR INSURERS ALSO INCLUDES DAMAGE TO CARS IN THE UNDERGROUND GARAGE WHERE THE BOMB BLEW UP STATE FARM MUTUAL AUTOMOBILE INSURANCE CO THE COUNTRY'S LARGEST CAR INSURER SAID IT HAS ONLY RECEIVED 25 CLAIMS ABOUT 2000 CARS WERE IN THE GARAGE AT THE TIME OF THE EXPLOSION 9303300163 930216 HEALTH BLOOD TEST FOR PROSTATE CANCER IS RAISING ISSUES OF RELIABILITY DRUGINDUSTRY ROLE BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL THE AMERICAN CANCER SOCIETY WANTS MEN OVER 50 TO GET AN ANNUAL BLOOD TEST DESIGNED TO DETECT PROSTATE CANCER WHICH EACH YEAR KILLS AN ESTIMATED 35000 MEN IN THE US THE SOCIETY'S RECOMMENDATION IS EXPECTED TO SWAY FAMILY PHYSICIANS TO USE THE PROSTATESCREENING TEST ROUTINELY AND IT EVEN COULD CREATE A LEGAL STANDARD LEADING TO A CHARGE OF NEGLIGENCE AGAINST A DOCTOR FOR NOT ADMINISTERING THE TEST BUT SOME TROUBLING QUESTIONS HAVE EMERGED ABOUT THE ROLE THE HEALTHCARE INDUSTRY PLAYED IN INFLUENCING THE CANCER SOCIETY'S RECOMMENDATION LAST NOVEMBER AND ABOUT THE RELIABILITY OF THE TEST ITSELF WHICH COSTS FROM 30 TO 70 ASIDE FROM THAT CHARGE POSSIBLE RELATED EXPENSES INCLUDE BIOPSIES ULTRASOUND TESTS REPEAT BIOPSIES TREATMENT AND COMPLICATIONS FROM TREATMENT THUS THE TOTAL COST OF MASS SCREENING HAS BEEN ESTIMATED AT 28 BILLION A YEAR IN THE US ALONE A CRUCIAL STEP TOWARD THE SCREENING RECOMMENDATION WAS AN OCTOBER 1991 CONFERENCE OF UROLOGISTS HELD BY THE CANCER SOCIETY TO DISCUSS THE USEFULNESS OF THE PROSTATE BLOOD TEST THE HEALTHCARE INDUSTRY PICKED UP THE ENTIRE 80649 HOTEL TAB FOR THAT FOURDAY SYMPOSIUM AT THE CLOISTER AN ELEGANT SEA ISLAND GA RESORT AMONG THOSE PAYING FOR THE HOTEL STAY WERE THE HYBRITECH INC UNIT OF INDIANAPOLIS'S ELI LILLY & CO AND TAP PHARMACEUTICALS A JOINT VENTURE OF JAPAN'S TAKEDA PHARMACEUTICAL CO AND ABBOTT LABORATORIES HYBRITECH AND ABBOTT OF NORTH CHICAGO ILL ARE THE ONLY TWO COMPANIES WITH PROSTATE BLOOD TESTS APPROVED BY THE US FOOD AND DRUG ADMINISTRATION OTHERS HELPING PAY THE BILL WERE MAJOR PLAYERS IN THE BUSINESS OF TREATING PROSTATE DISEASE BRUEL & KJAER INSTRUMENTS WHICH MAKES ULTRASOUND EQUIPMENT AND PROSTATE DRUG SELLERS MERCK & CO THE KABI PHARMACIA UNIT OF SWEDEN'S PROCORDIA AB THE SCHERING LABORATORIES UNIT OF SCHERINGPLOUGH CORP AND THE ICI PHARMACEUTICALS UNIT OF IMPERIAL CHEMICAL INDUSTRIES PLC OF BRITAIN BUT THERE ARE SEVERE LIMITATIONS TO THE BLOOD TEST WHICH IS KNOWN AS A PSA TEST FOR PROSTATESPECIFIC ANTIGEN UROLOGISTS RECOMMEND IT FOR MEN IN HIGHRISK GROUPS WHICH INCLUDE AFRICANAMERICANS AND MEN WITH FAMILY HISTORIES OF PROSTATE CANCER ALTHOUGH EVEN ITS CRITICS AGREE THE TEST IS BETTER THAN THE TRADITIONAL METHOD OF SEARCHING FOR PROSTATE CANCER THE DIGITAL RECTAL EXAM IT STILL IS FLAWED INDEED ABOUT ONEFOURTH OF ALL MEN WITH POSITIVE RESULTS FROM THE PSA TEST ONLY HAVE NONCANCEROUS PROSTATE ENLARGEMENT AND ABOUT 40 OF MEN WITH TREATABLE PROSTATE CANCER GET NEGATIVE RESULTS ON THEIR PSA TESTS FURTHER CURRENT SURGICAL TREATMENT MAY PRODUCE MORE FREQUENT AND SERIOUS PROBLEMS INCONTINENCE IMPOTENCE EVEN COLOSTOMIES THAN THEY SOLVE MANY UROLOGISTS ARGUE THESE UROLOGISTS POINT OUT THAT WHILE PROSTATE CANCER IS THE SECOND LEADING CAUSE OF CANCER DEATH IN MEN BEHIND LUNG CANCER IN MANY OTHER MEN THE CANCER STAYS IN THE PROSTATE GLAND AND DOESN'T KILL OR HARM THE PATIENT YES THE PSA TEST FINDS MORE CANCER AND TREATS MORE PEOPLE BUT YOU MAY TREAT PATIENTS WHO DON'T NEED IT AND CAUSE COMPLICATIONS CONTENDS GERALD CHODAK A UROLOGY AND SURGERY PROFESSOR AT THE UNIVERSITY OF CHICAGO MY FEAR IS THAT THE NUMBER OF PEOPLE LIVING LONGER IS SMALL RELATIVE TO THE NUMBER OF PEOPLE TREATED UNNECESSARILY AND HARMED DR CHODAK TELLS OF A LETTER FROM A WOMAN WHOSE FATHER WAS DIAGNOSED WITH CANCER THROUGH THE PSA TESTAND DIED IN SURGERY ABOUT 1 OF PATIENTS DIE FROM PROSTATECANCER SURGERY PHYSICIANS LIKE DR CHODAK CONTEND THERE JUST ISN'T ENOUGH EVIDENCE TO SUPPORT MASS SCREENING AND THERE ARE CONCERNS ABOUT THE PROCESS LEADING TO THE CANCERSOCIETY RECOMMENDATION CONFLICTS OF INTEREST HAVE BECOME A MAJOR PROBLEM AT ALL LEVELS OF MEDICAL CARE SAYS JOHN H WASSON PROFESSOR OF MEDICINE AT DARTMOUTH MEDICAL SCHOOL AND A CRITIC OF PSA DR WASSON WHO CONSIDERS THE TEST A 28 BILLION SUBOPTIMAL TEST ATTENDED THE MEETING BUT SAYS CONFERENCE MEMBERS WEREN'T TOLD OF INDUSTRY'S ROLE IN PAYING FOR IT AT THE CENTER OF THE CONTROVERSY IS THE CANCER SOCIETY'S CHIEF MEDICAL OFFICER GERALD P MURPHY A LEADING ADVOCATE OF THE PSA TEST HE NOTES THAT THE CANCER SOCIETY HELD SUBSEQUENT MEETINGS ON PROSTATE SCREENING WITHOUT INDUSTRY FUNDING BEFORE REACHING ITS CONCLUSIONS HE AND OTHER DEFENDERS OF THE PSA TEST ALSO MAINTAIN IT IS SUPERIOR TO ANY OTHER DIAGNOSTIC TOOL FOR PROSTATE CANCER THE CANCER SOCIETY RECOMMENDS MEN GET BOTH THE PSA TEST AND A RECTAL EXAM THAT WORKSHOP WAS TO GATHER INFORMATION AND DIDN'T MAKE POLICY HE SAYS WE'RE NOT A FEDERAL REGULATORY AGENCY AND WE'RE NOT PASSING LAWS OR SPENDING MONEY HE AND OTHER CONFERENCE ORGANIZERS SAY THE DOCTOR WHO SOUGHT THE INDUSTRY MONEY WAS DAVID MCLEOD CHIEF OF UROLOGY AT WASHINGTON'S WALTER REED ARMY MEDICAL CENTER MURPHY ASKED IF I KNEW SOME PEOPLE IN INDUSTRY WHO COULD CONTRIBUTE TO THIS DR MCLEOD RECALLS YOU CAN'T DO IT WITHOUT INDUSTRY SPONSORSHIP BUT YOU DON'T WANT THIS PERCEPTION OF IMPROPRIETY IT'S NOT AS IF ABBOTT AND HYBRITECH WERE PULLING PHYSICIANS AROUND LIKE MARIONETTES LILLY ARGUES THERE WAS NO CONFLICT OF INTEREST FOR THE DOCTORS AT THE SYMPOSIUM BECAUSE THE MONEY IN LILLY'S CASE 7500 WENT TO A GENERAL CONFERENCE FUND AND NOT TO INDIVIDUAL PHYSICIANS ABBOTT DECLINES TO COMMENT IN VIEW OF DR MURPHY'S INVOLVEMENT IN THE DEVELOPMENT OF THE PSA TEST HIS AGGRESSIVE ADVOCACY ON BEHALF OF THE TEST HAS BEEN CRITICIZED WITHIN THE PROFESSION HE HEADED THE ROSWELL PARK CANCER INSTITUTE IN BUFFALO WHEN RESEARCHERS THERE FIRST ISOLATED THE HUMAN ANTIGEN LINKED TO PROSTATE ILLNESS THE RESEARCHERS FOUND THE ANTIGEN IN THE BLOOD AND DETERMINED IT SERVED AS A ROUGH MEASURE OF DISEASE IN THE PROSTATE A WALNUTSIZE GLAND THAT PRODUCES SEMINAL FLUID DR MURPHY WHO NO LONGER IS AFFILIATED WITH ROSWELL PARK SAYS HE RECEIVES NO ROYALTIES FROM THE TEST THOUGH ROSWELL PARK ITSELF CONTINUES TO RECEIVE PAYMENTS ON THE LILLY AND ABBOTT TESTS THE PSA TEST IS SORT OF HIS BABY SAYS JOSEPH OESTERLING AN ATTENDING UROLOGIST AT THE MAYO CLINIC IN ROCHESTER MINN WHO BELIEVES IN THE TEST'S USEFULNESS FOR SOME GROUPS OF MEN PARTICIPANTS AT SEA ISLAND SAY DR MURPHY WAS DETERMINED TO REACH CONSENSUS IN FAVOR OF WIDESPREAD PSA SCREENING ONE PARTICIPANT SAYS DR MURPHY PULLED A MICROPHONE FROM THE HAND OF A DOCTOR OPPOSING PSA SCREENING DR MURPHY DENIES THAT BUT SAYS THE MEETING FEATURED A HEATED GIVE AND TAKE DR OESTERLING PUTS IT MORE STRONGLY PEOPLE WHO WERE IN OPPOSITION TO DR MURPHY WERE HAMMERED DOWN HE SAYS REPLIES DR MURPHY NO ONE PERSON CAN PUSH THIS MURPHY ISN'T SOME KIND OF SVENGALI HIS CAMPAIGN THOUGH SEEMS TO BE HAVING SOME EFFECT DR CHODAK SAYS HE QUERIES GROUPS OF GENERAL PRACTITIONERS WHEN HE SPEAKS AT CONFERENCES AND HAS FOUND ABOUT 90 OF THEM NOW SCREEN PATIENTS FOR PROSTATE CANCER UP FROM ABOUT 60 A YEAR AGO ASIDE FROM THE CANCER SOCIETY ANOTHER BIG ADVOCATE FOR PSA SCREENING IS REPUBLICAN SEN BOB DOLE OF KANSAS WHO HAD SUCCESSFUL SURGERY FOR PROSTATE CANCER DETECTED BY THE PSA BLOOD TEST AND SAYS THE PSA TEST SAVED HIS LIFE BUT MANY UROLOGISTS SAY THAT SURPRISINGLY CATCHING PROSTATE CANCER EARLY ISN'T NECESSARILY BENEFICIAL TO ALL MEN WITH THE DISEASE THESE DOCTORS NOTE THAT MANY PROSTATE CANCERS NEVER LEAVE THE PROSTATE GLAND OR BECOME LIFETHREATENING AND THAT CURRENT MEDICINE GENERALLY CAN'T EFFECTIVELY DISTINGUISH BETWEEN MORE AND LESS VIRULENT FORMS OF THE DISEASE YOU HAVE PEOPLE IN THE UROLOGIC COMMUNITY COMING DOWN ON BOTH SIDES SAYS DR MCLEOD THERE ARE NO DATA SHOWING THAT PSA WILL REDUCE MORTALITY THE QUESTION HE SAYS IS WHETHER MEN WITH PROSTATE CANCER WILL DIE OF THE DISEASE OR OF SOMETHING ELSE DR OESTERLING ADVISES MEN AND THEIR DOCTORS TO CONSIDER FACTORS LIKE AGE AND GENERAL HEALTH BEFORE GETTING A PSA TEST AN ILL 65YEAROLD MAY NOT BENEFIT WHILE A HEALTHY MAN OF THE SAME AGE MIGHT SEE RELATED LETTER LETTERS TO THE EDITOR EARLY DETECTION OF PROSTATE CANCER WSJ MARCH 29 1993 9302160029 9303300139 930217 MEDICAL QUANDARY BREASTCANCER PATIENTS SEEKING NEW THERAPY FACE TOUGH OBSTACLES MANY INSURERS BAR COVERAGE FOR MARROW TRANSPLANTS AS PURELY EXPERIMENTAL COSTLY PAINFUL AND UNCERTAIN BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO PEERING OUT FROM A SOFTBRIMMED HAT THAT HIDES HER NEW CROP OF POSTCHEMOTHERAPY HAIR PEGGY CHEUNG IS A DEMURE VICTOR IN A TROUBLING BATTLE THE 33YEAROLD ACCOUNTANT TOOK ON HER INSURANCE COMPANY AND WON THE RIGHT TO TRY A HARROWING BREASTCANCER TREATMENT THAT SHE WAS TOLD MIGHT SAVE HER LIFE IF IT DIDN'T KILL HER CONVENTIONAL TREATMENT SURGERY CHEMOTHERAPY AND RADIATION HAD BOUGHT ONLY A FOURMONTH REMISSION BEFORE THE AGGRESSIVE TUMOR POPPED UP UNDER HER COLLARBONE FACED WITH A USUALLY INCURABLE CONDITION DOCTORS THEN OFFERED A RADICAL COURSE A BONEMARROW TRANSPLANT AT A COST OF 150000 IT INVOLVED A 1IN20 RISK OF THE PATIENT'S DYING FROM THE TREATMENT AND A 1IN4 CHANCE OF SURVIVING AT LEAST FIVE YEARS WITH TREATMENT I MIGHT HAVE A CHANCE TO SEE MORE OF THIS BEAUTIFUL WORLD SHE SAYS LOOKING OUT AT SAN FRANCISCO BAY WITHOUT IT I FELT SO HOPELESS LIKE MS CHEUNG GROWING NUMBERS OF WOMEN HAVE SUCCESSFULLY SUED THEIR INSURERS TO GET THEM TO PAY FOR BONEMARROW TRANSPLANTS FOR BREAST CANCER FOR RESEARCHERS THE QUESTION IS WHEN DOES AN EXPERIMENTAL TREATMENT BECOME STANDARD THERAPY FOR THE NATION THE QUESTION IS HOW TO BALANCE GROWING DEMANDS FOR HIGHTECH MEDICINE WITH THE NEED TO REIN IN HEALTHCARE COSTS MOREOVER THERE'S ANOTHER PROBLEM HOW TO GET LAWSUITS OVER INSURANCE DISPUTES RESOLVED IN LIFEANDDEATH CASES BEFORE THE PATIENT HAS DIED BONEMARROW TRANSPLANT HAS BECOME THE MOST CONTROVERSIAL ISSUE IN AMERICAN MEDICINE SAYS WILLIAM MCGIVNEY DIRECTOR OF TECHNOLOGY ASSESSMENT FOR AETNA HEALTH PLANS A UNIT OF AETNA LIFE & CASUALTY CO IT'S A MICROCOSM OF TODAY'S HEALTHCARE QUANDARY CAN SOCIETY AFFORD TO PAY FOR THIS ESPECIALLY WHEN WE ONLY HAVE A MODICUM OF DATA THE STAKES ARE HIGH BREAST CANCER IS A MAJOR KILLER WITH 180000 NEW CASES AND 46000 FATALITIES A YEAR PERHAPS A THIRD OF THOSE WHO DIE MIGHT BE CANDIDATES FOR BONEMARROW TRANSPLANTS AT A TOTAL COST OF 225 BILLION A YEAR THOUGH SOME INSURERS SUCH AS AETNA APPROVE BONEMARROW TRANSPLANTS FOR THE TERMINALLY ILL MS CHEUNG'S CARRIER BRIDGEWAY PLAN FOR HEALTH AND MANY OTHERS STILL SAY NO QUALMED INC OF PUEBLO COLO WHICH RECENTLY BOUGHT BRIDGEWAY DECLINES TO COMMENT ON HER CASE WHEN THE INSURANCE COMPANY SAID THEY WOULDN'T PAY FOR ME IT WAS LIKE THE END OF THE WORLD MS CHEUNG RECALLS I HAD NEVER BEEN IN A LAWSUIT BEFORE I WAS SCARED AND SAD TRYING TO FIND A SOLUTION WORE ME OUT HER HUSBAND A COMPUTER SALESMAN HAD QUIT HIS JOB TO CARE FOR HER AND THE COUPLE HAD ONLY 15000 TO THEIR NAME BUT THEY WENT TO COURT AND WON A PRELIMINARY INJUNCTION ORDERING THE INSURER TO PAY IT GAVE ME A CHANCE TO FIGHT THE DISEASE TO DO ALL I COULD SHE SAYS NOW BACK ON HER FEET AFTER A GRUELING 2 1/2 MONTHS OF HOSPITALIZATION MARKED BY FEVERS AND INFECTION MY DOCTOR SAID NOBODY CAN GUARANTEE BONEMARROW TRANSPLANT WILL WORK BUT AT LEAST I HAVE HOPE A BONEMARROW TRANSPLANT IS ESSENTIALLY A HIGHTECH RESCUE FROM THE RAVAGES OF HIGHDOSE CHEMOTHERAPY IN THE CASE OF BREAST CANCER DOCTORS REMOVE THE PATIENT'S BONE MARROW USE MASSIVE CHEMOTHERAPY AND THEN REINFUSE IN THE PATIENT HER OWN MARROW TO OFFSET THE SIDE EFFECTS OF THE DRUGS AND TO REPLENISH HEALTHY BLOOD CELLS AND RESTORE THE IMMUNE SYSTEM DESPITE LONG RECUPERATIONS AND PUNISHING SIDE EFFECTS FROM THE BONEMARROW TRANSPLANTS THEMSELVES A SIMILAR STRATEGY BUT USING DONOR MARROW HAS SHOWN A 40 TO 50 SUCCESS RATE IN CURING CERTAIN BLOODSTREAM CANCERS SUCH AS LEUKEMIA AS A TREATMENT FOR BREAST CANCER HOWEVER BONEMARROW TRANSPLANT HAS MEDICAL OPINION DIVIDED YOU COULD ARGUE RESPONSE RATES ARE NO MORE DURABLE SURVIVAL NO LONGER AND QUALITY OF LIFE NO BETTER WITH BONEMARROW TRANSPLANT THAN WITH CONVENTIONAL TREATMENT SAYS I CRAIG HENDERSON OF THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO THIS DOESN'T MEAN I DON'T BELIEVE IT WILL BE BUT RIGHT NOW THE DATA AREN'T THERE DESPITE PRESSURE FROM A VOCAL WOMEN'S HEALTH LOBBY RESEARCHERS HAVE YET TO SCORE A BREAKTHROUGH AGAINST ADVANCED BREAST CANCER THE PROGNOSIS REMAINS BLEAK YOUNG WOMEN WITH SPREADING BREAST CANCER MAY HAVE A MEDIAN SURVIVAL OF ONLY TWO YEARS POORER CHANCES THAN SOME POSTMENOPAUSAL PATIENTS HAVE ONCE A PERSON HAS A RECURRENCE IT IS DEVASTATING SAYS KAREN ANTMAN OF THE DANAFARBER CANCER INSTITUTE IN BOSTON USING CONVENTIONAL TREATMENTS DR ANTMAN ADDS YOU COULD PALLIATE THE SYMPTOMS BUT YOU DIDN'T CURE WITH BONEMARROW TRANSPLANT WE GET 10 TO 30 COMPLETE REMISSIONS THAT ARE CONTINUING AS WE FOLLOW THESE PATIENTS OUT THREE TO FOUR YEARS BELIEVERS IN BONEMARROW TRANSPLANT ARGUE THAT THEY KNOW ENOUGH TO RECOMMEND THE PROCEDURE FOR CERTAIN PATIENTS ESPECIALLY YOUNG WOMEN WHOSE TUMORS ARE SPREADING OR ARE LIKELY TO SPREAD BUT ARE STILL SUSCEPTIBLE TO CHEMOTHERAPY ONCE I KNOW THAT SOMETHING IS THE BEST TREATMENT FOR A GIVEN SITUATION THEN IT'S NO LONGER EXPERIMENTAL SAYS LARRY NORTON OF MEMORIAL SLOANKETTERING CANCER CENTER IN NEW YORK WHEN I CALL A WOMAN AT HOME AND HER CHILD ANSWERS THE PHONE AND SAYS MOMMY THE DOCTOR IS CALLING' IT'S HARD FOR ME TO THINK THAT MAYBE I WON'T SAVE THIS LIFE BECAUSE IT WOULD BE CHEAPER DR NORTON SAYS IF I HAVE A TREATMENT TO SAVE MOMMY'S LIFE THEN I WILL USE IT ULTIMATELY THE QUESTION OF TREATMENT MAY BE DECIDED BY FOUR LARGE NATIONAL STUDIES BEING CONDUCTED UNDER THE AEGIS OF THE NATIONAL CANCER INSTITUTE BUT UNTIL THE CLINICAL TRIALS IN THE STUDIES YIELD SOME ANSWERS BEGINNING PERHAPS IN TWO TO FOUR YEARS THE INSTITUTE'S POLICY STATES THAT BONEMARROW TRANSPLANT SHOULD BE USED TO TREAT BREAST CANCER ONLY IN SUCH TRIALS MICHAEL FRIEDMAN AN OFFICIAL AT THE INSTITUTE ACKNOWLEDGES THAT THE RATE OF EARLY REMISSIONS OUTSTRIPS ANYTHING CONVENTIONAL CARE OFFERS STANDARD CARE WILL NOT GIVE YOU 25 OF WOMEN IN COMPLETE REMISSION AFTER FIVE YEARS HE SAYS BUT EVEN THE WOMEN WHO GO THROUGH AN AGONIZING TRANSPLANT AND SURVIVE FOR FIVE YEARS CAN'T BE SURE THAT THEY HAVE BEEN CURED OR WILL HAVE NORMAL LIFE SPANS AND WHEN TRANSPLANTS FAIL TO HALT THE CANCER THEY CAN LEAVE PATIENTS AND THEIR FAMILIES FEELING BETRAYED LEE BALTER A NEW YORK BROKER AND INVESTOR BELIEVES HIS LATE WIFE SUFFERED MORE FROM THE PUTATIVE CURE THAN THE CANCER ANITA HART NICK BALTER SAW SALVATION IN THE PROCEDURE BUT ENDED UP WITH A PLAGUE OF SIDE EFFECTS INCLUDING SCARRED LUNGS NERVE DAMAGE AND A BLISTERED DIGESTIVE TRACT PROBLEMS THAT SHE RECOUNTED IN A POEM PUBLISHED IN 1990 IN THE NEW ENGLAND JOURNAL OF MEDICINE ONLY MOANS ESCAPE MY LIPS I CANNOT EAT OR SPEAK SHE WROTE INSIDE A HOWL FESTERS HER LAST VACATION WITH HER HUSBAND ON NEW YORK'S FIRE ISLAND ENDED PITEOUSLY HER HUSBAND SAYS WE HAD TO WHEEL HER IN A LITTLE KID'S WAGON TO THE FERRY LIKE IN PORGY AND BESS HE ADDS THE STRUGGLE WITH BREAST CANCER AND WITH DEATH IS SO CRAZY NICK WANTED TO LIVE AND SHE WAS WILLING TO TAKE A RISK BUT I DON'T THINK SHE UNDERSTOOD HOW BAD IT WOULD BE IN THE SMALL FLORIDA TOWN OF DESTIN ANOTHER BREASTCANCER LITIGANT IS AWAITING A DECISION ON A COURT APPEAL THAT HAS STIRRED WIDESPREAD INTEREST MARY DAHLEIMERS WHO RUNS A SMALL FLORIST'S SHOP WITH HER HUSBAND RICHARD DEVELOPED BREAST CANCER IN 1988 AFTER TREATMENT SHE DID WELL UNTIL 1991 WHEN THE TUMOR MOVED INTO HER HIPBONE FOR SIX MONTHS SHE COMMUTED TO NEW YORK TO TAKE PART IN TESTS THERE OF TAXOL AN EXPERIMENTAL DRUG HER TUMOR RETREATED BUT DIDN'T DISAPPEAR WITH THE TUMOR NOW INVADING HER LIVER DOCTORS RECOMMENDED A BONEMARROW TRANSPLANT BUT HER INSURANCE CARRIER MUTUAL OF OMAHA LIFE INSURANCE CO DENIED COVERAGE LIKE MANY INSURERS IT WON'T PAY FOR ANY TREATMENT THAT ISN'T STANDARD PRACTICE THE COMPANY DECLINES TO COMMENT SPECIFICALLY ON MRS DAHLEIMERS'S CASE EXCEPT TO SAY IT IS ACTING IN GOOD FAITH SHE SUED IN JULY A FEDERAL JUDGE IN PENSACOLA RULED AGAINST MRS DAHLEIMERS AND SHE APPEALED BACKING HER IN HER APPEAL ARE SIX MAJOR BONEMARROW TRANSPLANT CENTERS INCLUDING SLOANKETTERING IN NEW YORK MD ANDERSON MEDICAL CENTER OF THE UNIVERSITY OF TEXAS IN HOUSTON AND THE FRED HUTCHINSON CANCER RESEARCH CENTER IN SEATTLE IN A FRIENDOFTHECOURT BRIEF THEY ASKED THE COURT TO ORDER SWIFT TREATMENT FOR HER JOHN COVA DIRECTOR OF TECHNOLOGY ASSESSMENT FOR THE HEALTH INSURANCE ASSOCIATION OF AMERICA CRITICIZES THE HOSPITALS' INTERVENTION CHARGING THEY ARE DESPERATE FOR FUNDING OTHERS SUGGEST THAT BONEMARROW TRANSPLANT UNITS ARE POTENTIAL PROFIT CENTERS FOR HOSPITALS AND THAT THEY ARE ACTING AS MUCH TO PROTECT THEIR BALANCE SHEETS AS THEIR PATIENTS IN NEW YORK KAREN GALLINARI A LAWYER FOR THE SIX HOSPITALS SAYS THEY ALREADY ARE ABSORBING CONSIDERABLE RESEARCH COSTS AND JOINED THE LAWSUIT TO KEEP PATIENTS FROM BEING PUT THROUGH THE WRINGER WHILE MRS DAHLEIMERS IS AWAITING A DECISION FROM A FEDERAL APPEALS COURT IN ATLANTA THE TUMOR HAS PAINFULLY INVADED HER SPINE AND SHE RECENTLY FLEW TO MEXICO TO OBTAIN LAETRILE AN UNPROVEN APRICOTPIT EXTRACT I HAVE A WIFE WHO'S DYING HER HUSBAND EXPLAINS AND EVERYBODY'S MOVING AT A BUREAUCRAT'S PACE SUCH ANGUISHED APPEALS CLOUD EVERYONE'S VISION SAYS DR COVA OF THE INSURANCE ASSOCIATION WE'RE TRYING TO DO TECHNOLOGY ASSESSMENT IN THE CONTEXT OF AN IDENTIFIED VICTIM HE NOTES IT'S DIFFICULT TO COME TO A RATIONAL DECISION THE INSURANCE INDUSTRY WARNS THAT THE DEMAND FOR EXPERIMENTAL HIGHTECH TREATMENTS WILL DRIVE EVERYONE'S HEALTHCARE BILLS THROUGH THE ROOF JUST WHEN EMPLOYERS AND OTHERS ARE CLAMORING FOR COST CONTAINMENT IN REBUTTAL THE INDUSTRY'S CRITICS ARGUE THAT CORONARYARTERY BYPASS SURGERY WAS ROUTINELY COVERED LONG BEFORE IT HAD BEEN STUDIED FULLY THEY ADD THAT COSTS OF MANY EXPERIMENTAL CANCER TREATMENTS ALSO ARE READILY REIMBURSED DESPITE A LACK OF DATA BECAUSE THEY ARE CHEAP OR DEMAND IS INFREQUENT THERE'S MORE DATA TO SUPPORT USE OF BONEMARROW TRANSPLANT IN BREAST CANCER THAN IN TESTICULAR CANCER WHICH IS ROUTINELY COVERED CHARGES WILLIAM PETERS A TRANSPLANT EXPERT AT THE DUKE UNIVERSITY CANCER CENTER IN DURHAM NC BUT HE NOTES THAT TESTICULAR CANCER IS RARE AND THUS LESS COSTLY TO INSURERS IN A COMPROMISE BLUE CROSS AND BLUE SHIELD ASSOCIATION OF AMERICA SET UP A 30 MILLION FUND TO SUPPORT THE NATIONAL CANCER INSTITUTE STUDY BUT THE INDUSTRY ISN'T LIKELY TO KEEP MAKING SUCH GRANTS IF INSURERS WERE TO BECOME ROUTINELY RESPONSIBLE FOR RESEARCH COSTS WARNS NAOMI ARONSON OF THE TRADE GROUP THEY'D BE UNABLE TO KEEP REASONABLE PREMIUMS HEALTH CARE WOULD BE UNAFFORDABLE IN ANY EVENT CRITICS SAY INSURANCE COMPANIES' FUNDING OF CLINICAL TRIALS ISN'T ENOUGH INCURABLY ILL PATIENTS WHOSE DOCTORS RECOMMEND BONEMARROW TRANSPLANT MAY NOT WANT TO ENTER A RANDOMIZED TRIAL WHERE THEY FACE EVEN ODDS OF LANDING IN A CONTROL GROUP GETTING NO TRANSPLANT I DON'T THINK YOU CAN FORCE PEOPLE TO PARTICIPATE IN A TRIAL SAYS ARNOLD LEVINSON MS CHEUNG'S ATTORNEY THAT'S USING PEOPLE'S LIVES AS GUINEA PIGS HE ADDS PEOPLE WHO BOUGHT INSURANCE BOUGHT A PROMISE TO TAKE CARE OF THEM IN TIMES OF GREAT NEED THE ADS ALL SAY THEY'RE THE STRONGEST THE MOST COMPASSIONATE PROVIDER OF PEACE OF MIND THEN THEY BURY THESE EXPERIMENTAL EXCLUSIONS ON THE BACK OF THE POLICY IN SAN FRANCISCO CONNIE TEEVAN A BREASTCANCER SURVIVOR SAYS AETNA PAID FOR HER TRANSPLANT BUT SHE'S MINDFUL OF THE COUNTRY'S HEALTHCARE DILEMMA I SUPPOSE IT MAKES SENSE TO TAKE THE 140000 AND GIVE WOMEN LOWCOST MAMMOGRAMS SHE SAYS BUT IT WOULD BE HARD FOR ME TO AGREE TO THAT WITH MY LIFE AT STAKE SEE RELATED LETTER LETTERS TO THE EDITOR TRANSPLANTS HOPE AND DESPAIR WSJ MARCH 29 1993 9302170184 9303300122 930217 RESEARCHERS SEEK WAYS TO CUT COST OF THE TRANSPLANTS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL AMID THE DEBATE OVER THE HIGH COST OF BONEMARROW TRANSPLANT FOR BREAST CANCER RESEARCHERS ARE SEEKING WAYS TO TRIM ITS 150000 PRICE TAG THIS PROCEDURE IS DEAD IN THE WATER UNLESS WE CAN FIND A WAY TO MAKE IT SIMPLER EASIER AND CHEAPER SAYS WILLIAM PETERS DIRECTOR OF DUKE UNIVERSITY'S TRANSPLANT PROGRAM IN DURHAM NC CURRENTLY THE BIGGEST BUDGETBUSTER IS THE LONG HOSPITAL STAY A MONTH OR MORE OF ISOLATION TO PROTECT FRAGILE TRANSPLANT RECIPIENTS FROM LETHAL INFECTIONS UNTIL THEIR NEWLY GRAFTED MARROW CAN FORM NEW BLOOD CELLS AND RESTORE AN IMMUNE DEFENSE NOW HOWEVER DUKE IS OFFERING THE TREATMENT ON AN OUTPATIENT BASIS SENDING PATIENTS HOME OR TO A NEARBY HOTEL WHEN IT WORKS DUKE SAYS IT HALVES THE COST BUT PATIENTS STILL ARE MONITORED FOR INFECTIONS OR OTHER PROBLEMS AND ARE RUSHED BACK TO THE HOSPITAL IF TROUBLE ARISES IN ADDITION COMPANIES ARE FINDING NEW WAYS TO HARVEST THE STEM CELLS TO BE TRANSPLANTED THE VERSATILE CELLS THAT GIVE RISE TO ALL RED AND WHITE BLOOD CELLS CURRENTLY DOCTORS ANESTHETIZE A PATIENT PIERCE THE BONE AND SIPHON OUT MARROW RESEARCHERS ARE FINDING THAT CELLS CAN ALSO BE ISOLATED FROM BLOOD SIMPLY WITHDRAWN FROM A PATIENT'S ARM COMPANIES DEVELOPING STEMCELL TECHNOLOGY INCLUDE CELLPRO INC OF BOTHELL WASH APPLIED IMMUNE SCIENCES INC OF SANTA CLARA CALIF HAEMONETICS CORP OF BRAINTREE MASS BAXTER INTERNATIONAL OF DEERFIELD ILL SYSTEMIX INC OF PALO ALTO CALIF AND IMCLONE SYSTEMS OF NEW YORK PATIENTS WHO GET LARGE DOSES OF STEM CELLS GET BETTER A LITTLE FASTER SAYS RICHARD CHAMPLIN OF THE UNIVERSITY OF TEXAS/MD ANDERSON CANCER CENTER IN HOUSTON BESIDES SHORTENING HOSPITALIZATION THIS CAN REDUCE THE RISK OF RELAPSE BECAUSE PURIFIED STEM CELLS ARE LESS LIKELY THAN BONE MARROW TO CONTAIN TUMOR CELLS PERIPHERAL BLOOD STEM CELLS WILL ONE DAY REPLACE CONVENTIONAL BONEMARROW TRANSPLANTS PREDICTS KAREN ANTMAN OF BOSTON'S DANAFARBER CANCER INSTITUTE SEE RELATED ARTICLE MEDICAL QUANDARY BREASTCANCER PATIENTS SEEKING NEW THERAPY FACE TOUGH OBSTACLES MANY INSURERS BAR COVERAGE FOR MARROW TRANSPLANTS AS PURELY EXPERIMENTAL COSTLY PAINFUL AND UNCERTAIN WSJ FEB 17 1993 SEE RELATED LETTER LETTERS TO THE EDITOR TRANSPLANTS HOPE AND DESPAIR WSJ MARCH 29 1993 9302170184 9302170055 9303300118 930217 TECHNOLOGY & HEALTH VASECTOMIES MIGHT INCREASE CANCER RISK LINK WITH PROSTATE ILLNESS POSSIBLE 2 STUDIES SHOW MORE TESTING IS URGED BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL TWO STUDIES INDICATED THAT MEN WHO HAVE HAD VASECTOMIES MAY RUN A HIGHER RISK OF DEVELOPING PROSTATE CANCER BOTH STUDIES DONE ON SEPARATE GROUPS OF SUBJECTS BY THE SAME TEAM OF RESEARCHERS IN BOSTON INDICATED THAT MEN WHO HAD VASECTOMIES MORE THAN 20 YEARS AGO MIGHT HAVE AN 85 TO 90 HIGHER RISK OF DEVELOPING PROSTATE CANCER THAN MEN WHO HADN'T HAD VASECTOMIES THE STUDIES HOWEVER SHOWED ONLY A POSSIBLE ASSOCIATION BUT DIDN'T PROVE THAT VASECTOMIES BRING ON PROSTATE CANCER THE CAUSES OF WHICH ARE UNKNOWN THE RESEARCHERS CALCULATED ONLY THE RISK POSED FOR A MAN WITH A VASECTOMY COMPARED WITH THAT OF A MAN WITHOUT THE OPERATION THE SOCALLED RELATIVE RISK A VASECTOMIZED MAN'S OVERALL PROSPECTS THE SOCALLED ABSOLUTE RISK FOR DEVELOPING PROSTATE CANCER WASN'T CALCULATED HOWEVER ONE STUDY WAS BASED ON THE FACT THAT OVER A 14YEAR PERIOD 59 MEN OUT OF 13000 WITH VASECTOMIES DEVELOPED PROSTATE CANCER COMPARED WITH 37 OF 12300 MEN WITHOUT VASECTOMIES THE AMERICAN CANCER SOCIETY STATISTICS INDICATE THAT 1 OUT OF EVERY 10 MEN IN THE US WILL DEVELOP PROSTATE CANCER BY AGE 85 ABOUT 165000 NEW CASES WILL BE DIAGNOSED THIS YEAR AND 35000 MEN WILL DIE OF THE CANCER THE SOCIETY ESTIMATES THE NEW STUDIES PUBLISHED IN THIS WEEK'S JOURNAL OF THE MEDICAL ASSOCIATION PROMPTED TWO SPECIALISTS TO DECLARE IN AN EDITORIAL THAT THE ASSOCIATION BETWEEN VASECTOMY AND PROSTATE CANCER IS WEAK AND MAY NOT BE ONE OF CAUSE AND EFFECT THEY NOTED THERE IS NO KNOWN EXPLANATION FOR HOW A VASECTOMY MIGHT CAUSE PROSTATE CANCER NEVERTHELESS BOTH THE EDITORIALISTS AND THE AMERICAN UROLOGICAL ASSOCIATION URGED THAT MEN WHO HAVE HAD VASECTOMIES BE EXAMINED AND TESTED ONCE EACH YEAR FOR PROSTATE CANCER AFTER THEY HAVE REACHED AGE 40 OR A DECADE YOUNGER THAN IN THE TWO GROUPS' PREVIOUS RECOMMENDATIONS FOR ALL MEN THEY RECOMMENDED BOTH A DIGITAL RECTAL EXAMINATION BY A PHYSICIAN AND A BLOOD TEST KNOWN AS THE PROSTATE SPECIFIC ANTIGEN OR PSA TEST THAT CAN DETECT AN INCREASE IN THE AMOUNT OF PROSTATE TISSUE THE UROLOGICAL ASSOCIATION WHOSE MEMBERS PERFORM VASECTOMIES AS WELL AS DIAGNOSE AND TREAT PROSTATE PROBLEMS INCLUDING CANCER ALSO RECOMMENDED THAT MEN WHO ARE THINKING ABOUT HAVING A VASECTOMY FOR CONTRACEPTIVE PURPOSES BE TOLD OF THE NEW STUDIES AND THE ASSOCIATION TRIED TO WARD OFF ANY STAMPEDE BY MEN TO HAVE SURGERY TO REVERSE THEIR VASECTOMIES SINCE THE RELATIONSHIP BETWEEN VASECTOMY AND PROSTATE CANCER IS UNPROVEN AND EVEN IF THERE IS A RELATIONSHIP THE MECHANISM OF CARCINOGENESIS IS UNKNOWN WE DO NOT RECOMMEND REVERSAL OF VASECTOMY THE GROUP STATED VASECTOMY IS A MINOR OPERATION USUALLY DONE ON AN OUTPATIENT BASIS IN WHICH THE SPERMCARRYING TUBES LEADING FROM THE TESTES ARE SEVERED TO RENDER A MAN STERILE WITHOUT AFFECTING POTENCY SURGERY TO RECONNECT THE SEVERED TUBES CAN BE DONE BUT SUCCESS HAS BEEN UNCERTAIN THE NEW STUDIES WERE REPORTED BY A TEAM FROM THE HARVARD MEDICAL SCHOOL THE HARVARD SCHOOL OF PUBLIC HEALTH AND THE DARTMOUTH MEDICAL SCHOOL THE TEAM WAS HEADED BY EDWARD GIOVANNUCCI OF HARVARD AND BRIGHAM & WOMEN'S HOSPITAL ONE GROUP OF MEN STUDIED BY THE TEAM CONSISTED OF NEARLY 48000 DENTISTS VETERINARIANS PHARMACISTS AND OTHER HEALTH PROFESSIONALS WHO VOLUNTEERED IN 1986 FOR A LONGTERM STUDY OF CANCER AND HEART DISEASE THE MEN'S HEALTH HISTORIES REVEALED THAT ABOUT 10000 HAD HAD VASECTOMIES BETWEEN 1955 AND 1986 BUT AT THE LATTER DATE DIDN'T HAVE PROSTATE CANCER WHEN THE RESEARCHERS DID A FOLLOWUP OF THE MEN'S HEALTH IN 1988 AND AGAIN IN 1990 THEY FOUND 300 CONFIRMED CASES OF PROSTATE CANCER AMONG THE 48000 MEN STATISTICIANS CALCULATED THAT THE MEN WITH VASECTOMIES WERE 66 MORE LIKELY TO HAVE DEVELOPED PROSTATE CANCER THAN MEN WHO HADN'T HAD THE OPERATION HOWEVER THE HIGHER RISK WAS CONCENTRATED ALMOST WHOLLY AMONG MEN WHO HAD HAD VASECTOMIES MORE THAN 22 YEARS EARLIER THEIR RISK WAS 85 HIGHER THE SECOND STUDY WHICH PRODUCED SIMILAR RESULTS INVOLVED THE HUSBANDS OF MORE THAN 25000 NURSES WHO ARE PART OF A LONGRUNNING STUDY OF WOMEN'S HEALTH THE RESEARCHERS GATHERED HEALTH DATA FROM THE NURSES ON 13000 HUSBANDS WHO HAD HAD VASECTOMIES AND ON 12300 HUSBANDS WHO HADN'T HAD THE OPERATION VASECTOMY BOOSTED THE RISK OF PROSTATE CANCER BY 56 OVERALL FOR THE NURSES' SPOUSES BUT BY 89 FOR THOSE WHO HAD THE OPERATION MORE THAN 20 YEARS EARLIER DR GIOVANNUCCI AND HIS COLLEAGUES SAID THEY STATISTICALLY RULED OUT THE EFFECTS OF DIET SMOKING ALCOHOL BODY MASS GEOGRAPHY AND EDUCATIONAL LEVEL ON PROSTATECANCER RISK IN THE EDITORIAL UROLOGIST STUART HOWARDS OF THE UNIVERSITY OF VIRGINIA AND HERBERT H PETERSON OF THE FEDERAL CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA NOTED THAT THREE OTHER POPULATION STUDIES FAILED TO FIND ANY LINK BETWEEN VASECTOMY AND PROSTATE CANCER BUT THEY SAID THE STUDIES BY DR GIOVANNUCCI AND HIS COLLEAGUES ARE SO WELL DESIGNED AND ANALYZED THAT WE MUST CONSIDER THE POSSIBILITY THAT NEITHER CHANCE NOR BIAS EXPLAINS THE STUDIES' FINDINGS SEE RELATED LETTER LETTERS TO THE EDITOR EARLY DETECTION OF PROSTATE CANCER WSJ MARCH 29 1993 9302170113 9303290176 930329 DENNY'S AGREES TO ALTER PRACTICES IN BIAS SETTLEMENT BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL DENNY'S RESTAURANTS AGREED TO BROAD CHANGES IN CUSTOMER RELATIONS ADVERTISING AND EMPLOYEE TRAINING AS PART OF A PROPOSED SETTLEMENT OF FEDERAL CHARGES OF RACIAL BIAS THE PROPOSAL WAS FILED FRIDAY TOGETHER WITH A JUSTICE DEPARTMENT LAWSUIT ACCUSING THE RESTAURANT CHAIN OF A PATTERN AND PRACTICE OF DISCRIMINATION AGAINST BLACK CUSTOMERS THE SETTLEMENT IS SUBJECT TO THE APPROVAL OF A FEDERAL JUDGE IN SAN FRANCISCO DENNY'S A UNIT OF THE TW SERVICES INC DIVISION OF TW HOLDINGS INC DENIED ALLEGATIONS THAT WHAT IT CALLED ISOLATED CUSTOMER COMPLAINTS IN CALIFORNIA DEMONSTRATED A PATTERN OF RACIAL DISCRIMINATION IT SAID THE GOVERNMENT CONCERNS STEMMED FROM LATENIGHT PROCEDURES IMPLEMENTED BY LOCAL MANAGEMENT TO ADDRESS SECURITY PROBLEMS THE PROCEDURES WERE ELIMINATED WHEN BROUGHT TO THE ATTENTION OF TOP MANAGEMENT DENNY'S SAID OUR COMPANY DOES NOT TOLERATE DISCRIMINATION OF ANY KIND SAID JEROME J RICHARDSON CHAIRMAN OF TW SERVICES ANY TIME EVIDENCE OF SUCH BEHAVIOR IS BROUGHT TO OUR ATTENTION WE INVESTIGATE AND APPROPRIATE DISCIPLINARY ACTION IS TAKEN MR RICHARDSON SAID THE SETTLEMENT WAS REACHED SO THE COMPANY CAN RESOLVE PAST CONCERNS NOW AND FOCUS OUR ENERGY AND RESOURCES ON THE PRESENT AND FUTURE ACCORDING TO THE GOVERNMENT DENNY'S EMPLOYEES REQUIRED BLACK PATRONS TO SHOW IDENTIFICATION BEFORE BEING ALLOWED TO ENTER THE RESTAURANTS EMPLOYEES REMOVED SOME BLACK PATRONS FROM RESTAURANTS WITHOUT GOOD CAUSE THE GOVERNMENT CHARGED THAT AFRICANAMERICAN CHILDREN WERE DENIED FREE BIRTHDAY MEALS THAT WERE ADVERTISED AND THAT BLACKS BUT NOT WHITES WERE REQUIRED TO PREPAY FOR MEALS AND TO PAY COVER CHARGES THE PROPOSED CONSENT DECREE REACHED AFTER MONTHS OF NEGOTIATIONS CALLS FOR DENNY'S TO CONDUCT AN ANTIDISCRIMINATION TRAINING PROGRAM FOR NEW AND CURRENT EMPLOYEES AND POST SIGNS TELLING CUSTOMERS IN ALL RESTAURANTS THAT SERVICE IS PROVIDED TO ALL PERSONS WITHOUT REGARD TO THEIR RACE OR COLOR THE RESTAURANT CHAIN BASED IN SPARTANBURG SC WILL ALSO HAVE TO INCLUDE A NONDISCRIMINATION STATEMENT IN TELEVISION AND NEWSPAPER ADVERTISEMENTS AND PORTRAY AT LEAST 25 PERCENT IDENTIFIABLE NONWHITES INCLUDING AT LEAST 20 BLACKS IN ITS ADS AND PROMOTIONAL FLYERS DENNY'S PROMISED TO TEST ITS OWN COMPLIANCE AND HIRE A CIVIL RIGHTS MONITOR TO OVERSEE THE PROGRAM FOR ITS FOURYEAR DURATION THE PROPOSAL WHICH APPLIES TO ALL OF DENNY'S APPROXIMATELY 1400 RESTAURANTS NATIONWIDE CALLS FOR INJUNCTIVE RELIEF ONLY HOWEVER DENNY'S ALSO FACES A FEDERAL LAWSUIT SEEKING UNSPECIFIED MONETARY DAMAGES BROUGHT BY A GROUP OF 32 BLACK CUSTOMERS IN SAN JOSE CALIF THEIR ALLEGATIONS ARE SUBSTANTIALLY SIMILAR TO THOSE IN THE GOVERNMENT CASE 9303290175 930329 FORCED BY US NORTHWEST QUITS PRESSURING RIVAL MOVE BY THE WHITE HOUSE ENDS YEARS OF INACTION ON AIR INDUSTRY PRICING BY BRUCE INGERSOLL AND JAMES P MILLER STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION REVERSING 12 YEARS OF REPUBLICAN INACTION ON AGGRESSIVE INDUSTRY PRICING FORCED NORTHWEST AIRLINES TO ABANDON PLANS TO ENTER THREE OF UPSTART RENO AIR'S MARKETS AND UNDERCUT ITS DISCOUNT FARES NORTHWEST BACKED DOWN AFTER TRANSPORTATION SECRETARY FEDERICO PENA EXPRESSED STRONG MISGIVINGS ABOUT THE PLAN AND AFTER THE JUSTICE DEPARTMENT BEGAN INVESTIGATING RENO AIR'S CHARGES GOVERNMENT OFFICIALS SAID THE NEVADABASED CARRIER ACCUSED NORTHWEST OF TAKING ILLEGAL ANTICOMPETITIVE ACTIONS TO THWART ITS ENTRY INTO THE MINNEAPOLISRENO MARKET THE ADMINISTRATION BY QUICKLY INTERCEDING IN THE RENO AIR CASE CONTRASTS TO THE GENERALLY LAISSEZFAIRE POLICIES OF THE REAGANBUSH ERA SERVING NOTICE ON THE INDUSTRY THAT THE GOVERNMENT WILL CHALLENGE PRICING PRACTICES PERCEIVED TO BE PREDATORY WE AREN'T GOING TO BE BASHFUL ABOUT INTERVENING WHERE IT'S CALLED FOR MR PENA ASSERTED MY PHILOSOPHY IS WE ARE WILLING TO STEP IN WHEREVER IT'S APPROPRIATE TO ENSURE THAT WE HAVE COMPETITION AND THAT CONSUMERS GET THE BEST SERVICE AND THAT WE HAVE A HEALTHY AIRLINE INDUSTRY AT A MEETING IN WASHINGTON TUESDAY MR PENA GAVE NORTHWEST PRESIDENT JOHN DASBURG THREE DAYS TO RECONSIDER WHAT THE SECRETARY REGARDED AS A HEAVYHANDED ATTEMPT TO SQUELCH COMPETITION FROM A FLEDGLING AIRLINE OFFICIALS SAID ON FRIDAY NORTHWEST CANCELED PLANS TO OFFER DAILY ROUNDTRIP SERVICE BETWEEN RENO NEV AND THREE WEST COAST CITIES SEATTLE LOS ANGELES AND SAN DIEGO NORTHWEST EXPLAINED ITS CHANGE OF HEART BY CITING RECENT CHANGES IN THE COMPETITIVE ENVIRONMENT WITHOUT MENTIONING PRESSURE FROM MR PENA AND THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION MR PENA APPLAUDED NORTHWEST'S DECISION IT INDICATES A RECOGNITION FROM THE INDUSTRY THAT WE WILL ALL HAVE TO CONDUCT OURSELVES QUITE DIFFERENTLY IN THE FUTURE SOME OFFICIALS BELIEVE IT'S THE FIRST INTERVENTION OF ITS KIND SINCE GOVERNMENT DEREGULATED THE AIRLINE INDUSTRY IN 1978 NORTHWEST JUST HAPPENS TO BE THE FIRST TO GET CAUGHT BY THE NEW POLICY ONE OFFICIAL SAID SEVERAL ANTITRUST LAWYERS SEE THE CLINTON ADMINISTRATION'S HANDSON APPROACH AS SIGNALING A DETERMINATION TO HALT AND PERHAPS EVEN ROLL BACK THE TREND TOWARD A HIGHLY CONCENTRATED INDUSTRY IT'S GOT TO BE PROCONSUMER THOMAS VAKERICS AN AVIATION ATTORNEY WITH THE WASHINGTON FIRM WINTHROP STIMSON PUTNAM & ROBERTS SAID OF THE NEW POLICY THE MORE COMPANIES YOU HAVE COMPETING THE LOWER THE PRICES THE AIRLINES AND ANTITRUST LAWYERS WILL BE WATCHING THE ADMINISTRATION'S NEXT MOVES CLOSELY TO SEE HOW AGGRESSIVE MR PENA AND THE JUSTICE DEPARTMENT INTEND TO BE THERE'S A FINE LINE BETWEEN WHAT IS PROTECTING COMPETITION AND WHAT IS BACKDOOR REGULATION SAID DANIEL KASPER AN ATTORNEY AND ECONOMIST WITH HARBRIDGE HOUSE A BOSTON CONSULTING FIRM THE BATTLE BETWEEN RENO AIR AND NORTHWEST SHAPED UP AS A CLEAR MISMATCH NORTHWEST A UNIT OF WINGS HOLDINGS INC IS A GLOBAL GIANT SERVING 240 DESTINATIONS ON FOUR CONTINENTS RENO AIR IN CONTRAST BILLS ITSELF AS A NICHE CARRIER FLYING TO MARKETS UNDERSERVED OR OVERPRICED BY BIGGER CARRIERS IT WENT PUBLIC WITH AN INITIAL OFFERING IN MAY AND BEGAN FLYING IN JULY CURRENTLY IT SERVES SIX WEST COAST CITIES FROM ITS MINIHUB IN RENO WITH ONLY 600 EMPLOYEES AND SEVEN LEASED AIRCRAFT WHAT TRIGGERED NORTHWEST'S COMPETITIVE RESPONSE WAS RENO AIR'S PLAN TO BEGIN OFFERING ON APRIL 1 THREETIMESADAY DIRECT SERVICE BETWEEN RENO AND NORTHWEST'S HOMETOWN HUB OF MINNEAPOLIS NORTHWEST HAD ABANDONED THE MINNEAPOLISRENO MARKET IN 1991 AS TOO UNPROFITABLE WITH ONEWAY EXCURSION FARES AS LOW AS 95 THE NEW SERVICE WILL PERMIT RENO AIR PASSENGERS TO MAKE INEXPENSIVE ONESTOP FLIGHTS FROM MINNEAPOLIS TO CALIFORNIA AND THE PACIFIC NORTHWEST IN FEBRUARY NORTHWEST COUNTERED BY ANNOUNCING IT WOULD RESUME MINNEAPOLISRENO SERVICE APRIL 1 AT ROUGHLY THE SAME PRICE RENO AIR CHARGES A FEW DAYS LATER NORTHWEST UPPED THE ANTE BY SAYING IT WOULD DUPLICATE RENO AIR'S FLIGHTS FROM RENO TO LOS ANGELES SEATTLE AND SAN DIEGO AT PRICES BELOW RENO AIR'S RENO AIR CRIED FOUL COMPLAINING TO THE TRANSPORTATION AND JUSTICE DEPARTMENTS WE'RE NOT AFRAID OF HEALTHY COMPETITION SAID JEFF ERICKSON PRESIDENT OF THE UPSTART CARRIER BUT A LARGE ENTRENCHED INCUMBENT AIRLINE SHOULDN'T USE ITS MARKET POWER TO FORESTALL COMPETITION THE ADMINISTRATION ACTED AFTER RECEIVING A STRENUOUS PROTEST FROM NEVADA'S DEMOCRATIC SENATORS RICHARD BRYAN AND HARRY REID AN INVESTIGATION WAS BEGUN BY THE ANTITRUST DIVISION CONCERNING ANTICOMPETITIVE ACTIONS DIRECTED AGAINST RENO AIR SAID A JUSTICE DEPARTMENT SPOKESWOMAN ON FRIDAY NORTHWEST YIELDED TO THE ADMINISTRATION'S PRESSURE BY ANNOUNCING THAT IT WON'T FLY WEST OF RENO NEV THOUGH IT WILL STILL INTRODUCE MINNEAPOLISRENO SERVICE OUR INTENTION WAS AND IS TO REMAIN FULLY COMPETITIVE FOR TWIN CITIESWEST COAST TRAFFIC SAID MICHAEL LEVINE NORTHWEST'S EXECUTIVE VICE PRESIDENTMARKETING HE POINTED OUT THAT OTHER AIRLINES INTEND TO MATCH RENO AIR'S MINNEAPOLISWEST COAST FARES ON CONNECTING FLIGHTS THROUGH SUCH HUBS AS DENVER SALT LAKE CITY AND PHOENIX AS A RESULT OF THESE COMPETITIVE DEVELOPMENTS MR LEVINE SAID WE NOW HAVE DETERMINED THAT WE CAN BETTER SERVE OUR CUSTOMERS BY EQUALING A WIDELY AVAILABLE ONESTOP FARE ON OUR NONSTOP FLIGHTS BETWEEN MINNEAPOLIS AND WEST COAST DESTINATIONS OVER THE LAST 12 YEARS THE ANTITRUST DIVISION WASN'T ENTIRELY DORMANT IT FAVORED BLOCKING TWO AIRLINE MERGERS BUT WAS OVERRULED BY THE TRANSPORTATION DEPARTMENT AND FOR FOREIGNPOLICY REASONS IT HAD TO DROP AN INVESTIGATION OF ANTICOMPETITIVE PRACTICES IN THE TRANSATLANTIC MARKET IN THE WANING DAYS OF THE BUSH ADMINISTRATION THE JUSTICE DEPARTMENT FILED AN ANTITRUST SUIT IN WASHINGTON CHARGING EIGHT MAJOR AIRLINES WITH SENDING SIGNALS THROUGH A COMPUTERIZED FARE DATA BASE IN AN ALLEGEDLY ILLEGAL SCHEME TO FIX PRICES TWO CARRIERS SETTLED THE MATTER PROMISING TO STOP ISSUING ADVANCE NOTICES OF FARE HIKES AND TO CURB PUBLISHING EXPIRATION DATES ON FARE CUTS FOR THE ANTITRUST DIVISION THE RENO AIR CASE IS AN IMPORTANT DEPARTURE SAID WILLIAM KOVACIC AN ASSOCIATE PROFESSOR OF LAW AT GEORGE MASON UNIVERSITY THEY ARE NOW SCRUTINIZING SINGLEFIRM CONDUCT 9303290174 930329 TECHNOLOGY INFORMATION AGE NICKELODEON SETS UP ONLINE FOCUS GROUP BY WILLIAM M BULKELEY NEW YORK IS THIS ANY WAY TO TREAT A GROWN MAN AFTER READING AN ARTICLE IN A NEW MAGAZINE THAT HE CREATED A CHILD PANS IT CALLING IT STUPID ANOTHER SAYS IT WAS BORING A THIRD A LOT OF IT WAS A LITTLE TOO WEIRD FOR ME FOR MARKET RESEARCHERS THOSE SORTS OF SPONTANEOUS COMMENTS ARE PRICELESS BUT THEY'RE TOUGH TO OBTAIN BECAUSE KIDS ARE OFTEN INTIMIDATED WHEN THEY TALK TO ADULTS NOW NICKELODEON THE CHILDREN'S CABLE TELEVISION NETWORK HAS GOTTEN AROUND THAT PROBLEM BY SETTING UP ONE OF THE FIRST CONSUMERPRODUCT FOCUS GROUPS ESTABLISHED OVER A COMPUTER NETWORK IT PROBABLY WON'T BE THE LAST YOU COULD CREATE THESE GROUPS FOR ANYTHING SAYS KAREN FLISCHEL VICE PRESIDENT OF RESEARCH AT NICKELODEON SHE ADDS THAT RESEARCHERS AT MTV ANOTHER VIACOM INC NETWORK ARE CONSIDERING ONLINE RESEARCH IT'S A GREAT TOOL BECAUSE IT GIVES A REAL SENSE OF IMMEDIACY WITH THE KIDS SAYS MICHAEL HAINEY AN EDITOR OF THE NICKELODEON MAGAZINE PROTOTYPE THAT WAS SKEWERED BY THE CHILDREN WE LIKED IT BECAUSE IT WAS A SOUNDING BOARD FOR KIDS ACROSS THE COUNTRY THE CHILDREN RESPONDED FAVORABLY TO THE MAGAZINE OVERALL MR HAINEY SAYS BUT WE'LL BE RETHINKING PARTS SUCH AS A CONFUSING TABLE OF CONTENTS AND AN ARTICLE ON A NORTH DAKOTA BOY THE CHILDREN 75 OF THEM BETWEEN THE AGES OF EIGHT AND 12 IN A DOZEN AREAS FROM BOSTON TO LOS ANGELES HAVE BEEN RECRUITED FOR A TWOYEAR STINT AS PARTICIPANTS IN GET HOOKED ON NICK BY NICKELODEON'S RESEARCHERS NICKELODEON WANTS TO MAKE SURE THAT TV SHOWS OFTEN CREATED BY CHILDLESS NEW YORKERS WILL ACTUALLY APPEAL TO BOYS AND GIRLS OF ALL RACES ACROSS THE COUNTRY BETWEEN THE AGES OF TWO AND 14 OTHER TV AND MOVIE PEOPLE ALSO ARE GETTING IN TOUCH WITH THEIR FANS ON SERVICES SUCH AS COMPUSERV PRODIGY AND GENIE SHOW PUBLICISTS AND DIRECTORS SOMETIMES GO ONLINE TO SEE HOW PEOPLE REACTED TO A SHOW THAT RAN THE NIGHT BEFORE IN OTHER FIELDS COMPUTER SOFTWARE COMPANIES HAVE DONE MARKET RESEARCH ONLINE IN COMPUSERV FORUMS FOR YEARS ASKING EARLY TESTERS TO REPORT PROBLEMS AS THEY FIND THEM BUT NICKELODEON SEEMS TO BE THE FIRST NETWORK TO FORMALIZE ONLINE RESEARCH THE CHILDREN THAT IT SELECTED ALL HAD COMPUTERS AND VCRS HALF ARE MINORITIES AND HALF ARE GIRLS FAMILY INCOMES IN THE GROUP RANGE FROM 20000 TO 120000 MS FLISCHEL SAYS ESTABLISHING THE GROUP AND MAINTAINING IT AS A PRIVATE FORUM ON COMPUSERV AN H&R BLOCK INC UNIT COSTS ABOUT 100000 A YEAR ABOUT THE SAME AS CONDUCTING SIX FACETOFACE FOCUS GROUPS OUTSIDE NEW YORK THE CHILDREN WHO AREN'T PAID CAN GO ONLINE AND CHAT INFORMALLY WITH EACH OTHER OR WITH NICKELODEON RESEARCHERS THREE AFTERNOONS A WEEK SOMETIMES THEY POST JOKES ON A BULLETIN BOARD OR CONTRIBUTE A SENTENCE TO A FANTASY STORY STARTED BY ONE CHILD WHEN NICKELODEON WANTS REACTION TO A NEW SHOW OR THE MAGAZINE IT SENDS VIDEOS OR A PROTOTYPE TO 20 KIDS AND ASKS THEM TO SIGN ON TO A SPECIAL CONFERENCE AT A SET TIME FOR ONE TO TWO HOURS ONLINE ISN'T PERFECT NICKELODEON RESEARCHERS CONCEDE YOU'D PREFER TO SEE THEM IN PERSON SAYS MR HAINEY THE EDITOR ONLINE TENDS TO BE A LOT OF MONOSYLLABIC TYPING IT ALSO DOESN'T WORK FOR YOUNGER CHILDREN WHO REVEAL MORE BY THEIR BODY LANGUAGE THAN BY THEIR SPOKEN OR WRITTEN WORDS THUS NICKELODEON CONTINUES MORE TRADITIONAL RESEARCH INCLUDING ANALYZING NIELSEN AND ARBITRON RATINGS INPERSON FOCUS GROUPS INTERVIEWS AT SCHOOLS AND TRACKING LETTERS AND CALLS ABOUT SHOWS BUT THE ONLINE FOCUS GROUP ELIMINATES TRAVEL COSTS AND LETS PEOPLE IN NEW YORK GET REACTION IN A FEW HOURS TO QUESTIONS SUCH AS PREFERRED SNEAKER STYLES OR WHAT MUSIC CHILDREN CONSIDER OLDIES BEATOVEN ONE BOY REPLIED IT HAS ALREADY BECOME AN UNBELIEVABLE RESEARCH RESOURCE TO US SAYS RANDE PRICE MANAGER OF RESEARCH PART OF THE GOAL WAS TO IMMERSE OURSELVES INTO KIDS' LIVES YOU CAN'T DO THAT IN A TRADITIONAL FOCUS GROUP SAYS BETH YOUNG OF NICKELODEON'S RESEARCH DEPARTMENT THIS PANEL IS THE NICKELODEON REFERENCE TO AMERICA IF A SPECIAL RESEARCH PROJECT COMES UP THE CHILDREN ARE THERE IN ONE CASE NICKELODEON SENT 12 CHILDREN VIDEO TAPES OF A NEW SHOW CALLED THE TOMORROW PEOPLE AND THEN ASKED THEM THEIR OPINIONS ONE CONCLUSION MANY CHILDREN DIDN'T REALIZE THAT ACTION WAS SHIFTING AMONG SEVERAL COUNTRIES PRODUCERS INSERTED GRAPHICS IN THE SHOW TO CLARIFY THAT IN DECEMBER WHEN THE NETWORK HAD JUST STARTED THE ONLINE PROJECT IT USED THE KIDS' GROUP TO DECIDE WHETHER TO PRODUCE A SPECIAL NEWS SHOW ON SOMALIA RESEARCHERS FOUND THAT THE CHILDREN ALREADY UNDERSTOOD THE ISSUES AND NICKELODEON DROPPED THE IDEA MS FLISCHEL SAYS FOR BOTH RESEARCHERS AND CHILDREN THE ONLINE GROUP IS A MUCH DIFFERENT EXPERIENCE THAN STANDARD FOCUS GROUPS WHERE ONE INTERVIEWER SITS IN FRONT OF A GROUP OF KIDS AND OTHERS SIT BEHIND A ONE WAYMIRROR SLIDING NOTES OF FURTHER QUESTIONS UNDER A DOOR DURING ONLINE SESSIONS AT NICKELODEON 10 EDITORS AND WRITERS CRAM INTO AN OFFICE WITH A LARGE MONITOR AND SHOUT QUESTIONS THAT A RESEARCHER TYPES INTO THE SYSTEM THE CHILDREN SEEM TO FEEL LESS PEER PRESSURE IN THE FORMAT THE RESEARCHERS SAY THE BOYS AND GIRLS WRITE COMMENTS DIRECTLY TO EACH OTHER ONLINE SOMETHING MANY OF THEM FEEL AWKWARD DOING IN REAL LIFE BUT THEY'VE NEVER SEEN EACH OTHER NICKELODEON DECIDED AGAINST SENDING THE CHILDREN PICTURES OF EACH OTHER TO AVOID STEREOTYPING THE RESEARCHERS HAVE COLLECTED PICTURES AND JOURNALS FROM ALL THE KIDS AND THEY HAVE A COLLAGE OF PICTURES OUTSIDE THEIR OFFICES BUT THEY CAN'T IDENTIFY THE CHILDREN BY THE PICTURES HOW DO THE KIDS FEEL ABOUT BEING ON THE PANEL COOL SAYS ONE IT'S PRETTY COOL SAYS ANOTHER I FEEL SORTA IMPORTANT AND AWESOME PIPES A THIRD OF COURSE THEIR INFLUENCE IS LIMITED NO MATTER WHAT THE RESEARCHERS SAY ONE SUGGESTION NICKELODEON IS IGNORING GET RID OF ALL COMMERCIALS 9303290173 930329 IRISH RETAIL SALES RISE DUBLIN RETAIL SALES IN IRELAND ROSE 03 IN JANUARY FROM DECEMBER AND WERE UP 23 FROM A YEAR EARLIER THE CENTRAL STATISTICS OFFICE SAID 9303290172 930329 RENAULT CHAIRMAN CONDITIONALLY BACKS PRIVATIZING CONCERN SPECIAL TO THE WALL STREET JOURNAL PARIS RENAULT CHAIRMAN LOUIS SCHWEITZER SAID HE ISN'T OPPOSED IN PRINCIPLE TO PRIVATIZATION OF THE FRENCH STATECONTROLLED AUTO MAKER BUT THAT SUCH A MOVE WOULD REQUIRE A SOLID SHAREHOLDER BASE AND THE COMPANY WOULD HAVE TO REMAIN PRINCIPALLY IN FRENCH HANDS MR SCHWEITZER IN AN INTERVIEW IN FRENCH DAILY LE FIGARO FRIDAY SAID THE PRINCIPLE OF PRIVATIZATION DOESN'T SHOCK ME AT ALL HOWEVER IT WOULD HAVE TO SATISFY THESE TWO CONDITIONS HE ADDED THAT AB VOLVO THE SWEDISH AUTO MAKER THAT CURRENTLY OWNS 20 OF RENAULT DOESN'T HAVE VETO POWER ON THE ENTRY OF A NEW SHAREHOLDER UNLESS THE NEW ENTRANT WERE ANOTHER COMPETITOR TODAY MR SCHWEITZER SAID THE PRINCIPAL SHAREHOLDER OF RENAULT IS THE STATE IF TOMORROW THAT WERE NO LONGER THE CASE WE WOULD HAVE TO FIND ANOTHER SHAREHOLDER WITH A GREATER WEIGHT THAN VOLVO CONCERNING THE ALLIANCE WITH VOLVO WHICH SUSTAINED HEAVY LOSSES IN 1992 MR SCHWEITZER SAID HE IS CONVINCED OF THE MERITS OF THE LINK BUT HE INDICATED THAT THERE IS ROOM FOR IMPROVEMENT IT ISN'T IMPOSSIBLE FOR ME TO IMAGINE CHANGES IN BOTH THE STRUCTURAL AND SHAREHOLDING LEVELS HE SAID HOWEVER HE ALSO SAID THAT RENAULT AND VOLVO CAN REINFORCE COOPERATION IN THE CURRENT SHAREHOLDER STRUCTURE REVIEWING THE TWO GROUPS' COOPERATION SINCE 1990 MR SCHWEITZER SAID THINGS HAVE PROGRESSED A LOT IN AUTOS AND LESS SO IN TRUCKS WE COULD HAVE DONE MORE HE SAID THERE HAVE BEEN PROBLEMS IN TRUCKS BECAUSE RENAULT VEHICULES INDUSTRIELS AND VOLVO TRUCK ARE MORE DIRECTLY IN COMPETITION THAN THE TWO COMPANIES' CAR UNITS MR SCHWEITZER ALSO DENIED REPORTS THAT RENAULT HAD BEEN APPROACHED BY ITALY'S FIAT SPA ABOUT TAKING A 40 STAKE THROUGH A FIAT CAPITAL INCREASE WE WERE NEVER ASKED ABOUT IT AND IT'S NOT MY PRINCIPAL SUBJECT FOR REFLECTION RIGHT NOW HE SAID 9303290171 930329 WHO'S NEWS BARACH RESIGNS AS CHAIRMAN OF US SHOE BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL CINCINNATI PHILIP G BARACH RESIGNED AS CHAIRMAN OF US SHOE CORP CITING DIFFERENCES WITH MANAGEMENT OVER HOW THE COMPANY IS BEING RUN MR BARACH GUIDED US SHOE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER FOR 25 YEARS UNTIL MARCH 1990 WHEN HE CEDED CONTROL TO BANNUS HUDSON MR BARACH 62 YEARS OLD SAID THAT HE INITIATED THE MOVE BUT DECLINED TO ELABORATE A COMPANY SPOKESMAN DESCRIBED MR BARACH'S RELATIONSHIP WITH THE COMPANY AS VERY CORDIAL AND NOTED THAT MR BARACH AGREED TO ACT AS AN INFORMAL ADVISER CHARLES S MECHEM JR SUCCEEDS MR BARACH MR MECHEM 62 HAS BEEN ON US SHOE'S BOARD SINCE 1990 HE IS COMMISSIONER OF THE LADIES PROFESSIONAL GOLF ASSOCIATION AND IS FORMER CHAIRMAN AND CHIEF EXECUTIVE OF TAFT BROADCASTING CO US SHOE HAS HAD A ROUGH TIME RECENTLY ITS CASUAL CORNER CHAIN OF WOMEN'S APPAREL STORES HAS SUFFERED AS IT SWITCHED FROM ONE MERCHANDISING CONCEPT TO ANOTHER ALIENATING CUSTOMERS AND IN FEBRUARY THE COMPANY SAID POOR SALES AND OTHER PROBLEMS IN ITS SHOE DIVISION WOULD ESSENTIALLY WIPE OUT FISCAL FOURTHQUARTER EARNINGS WHEN THE EARNINGS WERE RELEASED EARLIER THIS MONTH US SHOE DISCLOSED THAT IT WAS PUSHED INTO THE BLACK ONLY BY A BIG ACCOUNTING CREDIT MR BARACH HAD A REPUTATION AT US SHOE AS A WORKAHOLIC WHO DEMANDED TOTAL CONTROL HE SCOUTED FOR TRENDS BY WANDERING THROUGH SHOPPING MALLS ON WEEKENDS DURING HIS TENURE AS CHIEF EXECUTIVE US SHOE GREW FROM A SHOE COMPANY WITH 100 MILLION IN SALES TO A 26 BILLION BEHEMOTH WITH SHOE WOMEN'S APPAREL AND OPTICAL UNITS BUT HE STEPPED DOWN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER AFTER THE COMPANY STUMBLED WHICH INCLUDED THE DISCOVERY OF ACCOUNTING IRREGULARITIES AT ITS SHOE DIVISION THAT LED OBSERVERS TO SPECULATE THAT HE WAS PUSHED ASIDE SOMETHING HE DENIED 9303290170 930329 POLITICS & POLICY WHITE HOUSE RELEASES NAMES OF PEOPLE WORKING ON HEALTHREFORM TASK FORCE BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE STUNG BY CRITICISM FOR KEEPING SECRET THE IDENTITY OF THE PEOPLE WORKING FOR THE ADMINISTRATION'S HEALTHREFORM TASK FORCE FINALLY RELEASED THE NAMES THE LIST ISSUED LAST FRIDAY INCLUDES 511 PEOPLE 412 OF WHOM ARE FULLTIME GOVERNMENT EMPLOYEES EITHER IN THE EXECUTIVE BRANCH OR ON CONGRESSIONAL STAFFS EIGHTYTWO ARE IDENTIFIED AS SPECIAL GOVERNMENT EMPLOYEES WHO WERE BROUGHT IN FROM UNIVERSITIES HOSPITALS AND OTHER POSTS OUTSIDE THE FEDERAL GOVENMENT TO ASSIST FOR LESS THAN 130 DAYS MOST OF THOSE ADVISERS ARE BEING PAID ACCORDING TO WHITE HOUSE OFFICIALS SEVENTEEN OTHERS ARE LISTED AS CONSULTANTS PEOPLE WHO ADVISE THE TASK FORCE FOR NO PAY AND ATTEND MEETINGS PERIODICALLY MANY IN THE GROUP HAVE ALREADY BEEN WORKING ON THE HEALTHREFORM EFFORT FOR TWO MONTHS BUT THE WHITE HOUSE HAD STEADFASTLY REFUSED TO IDENTIFY THEM OFFICIALS CONTENDED THAT DISCLOSING THE NAMES WOULD SUBJECT THEM TO A BOMBARDMENT OF PHONE CALLS FAXES AND OTHER CONTACTS FROM LOBBYISTS AND JOURNALISTS THE GROUP HAS BEEN PREPARING A WIDE RANGE OF OPTIONS FOR THE HEALTHCARE PROPOSAL PRESIDENT CLINTON HAS PROMISED TO SUBMIT TO CONGRESS BY THE START OF MAY THE TASK FORCE WHICH IS LED BY FIRST LADY HILLARY RODHAM CLINTON AND INCLUDES SIX CABINET SECRETARIES WILL REVIEW THE OPTIONS AND MAKE RECOMMENDATIONS TO THE PRESIDENT MEANWHILE HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA ON FRIDAY RECOMMENDED TO CONGRESS THAT MEDICARE PAYMENT RATES FOR INPATIENT HOPSITAL CARE BE INCREASED 333 FOR URBAN HOSPITALS AND 483 FOR RURAL HOSPITALS NEXT YEAR MEDICARE IS THE FEDERAL HEALTH INSURANCE PROGRAM FOR ELDERLY AND DISABLED PEOPLE THE RECOMMENDATION IS ONE PERCENTAGE POINT LESS THAN HOSPITALS WOULD NEED TO GET TO KEEP PACE WITH INFLATION HHS SAID THE ADMINISTRATION IS ALSO PROPOSING TO DELAY THE FEE UPDATE TO THE START OF CALENDAR YEAR 1994 INSTEAD OF FISCAL 1994 WHICH BEGINS OCT 1 THE PROPOSALS WOULD SAVE ABOUT 17 BILLION FROM PROJECTED MEDICARE PAYMENTS IN FISCAL 1994 HHS SAID THEY ARE PART OF THE PRESIDENT'S DEFICITREDUCTION PLAN 9303290169 930329 CHANGE MASTERS OUTSIDERS WHO TRANSFORM COMPANIES NEW BLOOD TENNECO HIRED A CEO FROM OUTSIDE AND HE IS REFOCUSING THE FIRM STEELY AND DECISIVE WALSH MAKES THE PROGRESS IBM SEEKS FROM ITS NEW BOSS WALSH'S LATEST BATTLE CANCER BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL CAN AN OUTSIDER REVIVE IBM ALTHOUGH MUCH MORE THAN MANAGEMENT IS INVOLVED IN INTERNATIONAL BUSINESS MACHINES CORP'S PROBLEMS OFTEN A NEWCOMER CAN WORK WONDERS AT THE HELM OF A BIG COMPANY CONSIDER THE STORY OF MICHAEL H WALSH AND TENNECO INC WHEN THEY HIRED HIM IN 1991 DIRECTORS OF TENNECO DECIDED MR WALSH SHOULD SERVE A SEVENMONTH APPRENTICESHIP AS PRESIDENT BEFORE TAKING OVER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AFTER ALL HE HAD NO EXPERIENCE IN ITS BUSINESSES CHEMICALS AUTOMOTIVE PARTS SHIPBUILDING NATURALGAS PIPELINES PACKAGING AND AGRICULTURAL AND CONSTRUCTION EQUIPMENT BUT MR WALSH HAVING JUST COMPLETED A TURNAROUND OF UNION PACIFIC RAILROAD PLUNGED IN AND TOOK CHARGE OF TENNECO A 134 BILLIONAYEAR COMPANY RANKED 27TH AMONG THE FORTUNE 500 MIKE WAS SUPPOSED TO START ON OCT 1 BUT HE VISITED THE OFFICE A MONTH EARLY AND JUST STARTED WORKING SAYS JOSEPH SISCO AN UNDERSECRETARY OF STATE IN THE FORD ADMINISTRATION AND AN OUTSIDE TENNECO DIRECTOR SINCE 1977 HE WASN'T EVEN ON THE PAYROLL YET AT CHICAGO'S DRAKE HOTEL ON SEPT 4 1991 A MONTH BEFORE HE OFFICIALLY JOINED THE COMPANY MR WALSH SEIZED CONTROL OF IT GATHERED AT THE HOTEL FOR WHAT WAS SUPPOSED TO BE A CASUAL DINNER MEETING WERE PRESIDENTS OF THE COMPANY'S SIX DIVISIONS AS WELL AS CEO JAMES KETELSEN THEN 60 MR WALSH WAS THERE SIMPLY TO LISTEN AND BE INTRODUCED BY MR KETELSEN AS HIS EVENTUAL SUCCESSOR BUT UPON LEARNING THAT THE THIRDQUARTER OPERATING LOSS AT TENNECO'S CASE CORP FARM AND CONSTRUCTIONEQUIPMENT UNIT WOULD BE DOUBLE THE 83 MILLION EXPECTED BY SECURITIES ANALYSTS MR WALSH STARTED DEMANDING EXPLANATIONS AND GIVING ORDERS OBJECTING TO THE INTERRUPTION CASE PRESIDENT EDWARD CAMPBELL BESEECHED MR KETELSEN WHAT THE HELL IS GOING ON HERE BUT MR KETELSEN DEFERRED TO HIS HEIR APPARENT PROCEEDING FROM FARM EQUIPMENT TO NATURAL GAS SHIPBUILDING AND AUTO PARTS MR WALSH RAISED TOUGH QUESTIONS AND BEGAN TO UNDERSTAND WHY EARNINGS HAD FALLEN THREE YEARS IN A ROW AND WHY THAT YEAR THE COMPANY WOULD POST A NET LOSS OF 732 MILLION HE DISCOVERED AMONG OTHER THINGS THAT TENNECO'S PROFITABLE AUTOPARTS AND CHEMICALS DIVISIONS DIDN'T STRIVE AS HARD AS THEY MIGHT FOR HIGHER EARNINGS BECAUSE THEIR SURPLUS WAS ROUTINELY DUMPED INTO THE COMPANY'S MONEYLOSING FARMEQUIPMENT OPERATION HE DISCOVERED THAT INVENTORIES WERE BLOATED BECAUSE SOME PLANT MANAGERS KEPT PRODUCTION LINES ROLLING WITH LITTLE REGARD TO WHAT DEALERS ACTUALLY SOLD SHIPPING LABELS ON SOME WARES WERE SO ILLEGIBLE AND UNINFORMATIVE THAT CUSTOMERS HAD TROUBLE FIGURING OUT WHAT WAS INSIDE AND WERE SLOW TO PAY LET ALONE BUY MORE QUALITY CONTROL WAS A JOKE AT THAT POINT MR WALSH UNDERSTOOD WHAT HE HAD TO DO RIP OUT LAYERS OF STIFLING PROTOCOL WIPE AWAY ACCEPTANCE OF THE STATUS QUO AND UNDO YEARS OF BUILTUP CYNICISM ABOUT EFFORTS TO IMPROVE SAYS MR WALSH I ARRIVED TO FIND A BIG BEHEMOTH OF THE SORT THAT TRIES TWO THINGS ON ANYONE WHO WANTS CHANGE IT WAITS YOU OUT OR WEARS YOU OUT DETERMINED NOT TO LET IT WAIT HIM OUT MR WALSH TURNED THE SUPPOSEDLY CASUAL DINNER INTO A FOURDAY CRISISMANAGEMENT MARATHON I LOCKED EVERYONE IN A ROOM AND WE STARTED WORKING ON A PLAN TO GO WAY BEYOND TELLING THE WORLD HOW BAD THINGS WERE AND SHOW WHAT WE'RE DOING TO TURN IT ALL AROUND EIGHTEEN MONTHS LATER TENNECO BOOSTERS ARE GLAD HE LISTENED TO HER NOT ONLY HAS HE MANAGED TO RESTORE PROFITABILITY TO OPERATIONS BUT HE HAS DONE SO WITH STRATEGIES THAT GO FAR BEYOND THE USUAL HEAVY LAYOFFS AND PLANT CLOSINGS MR WALSH HAS SOUGHT OUT INEFFICIENCIES SUCH AS THE 179MILE ROUTES THAT SOME PARTS USED TO TRAVEL INSIDE FACTORIES QUALITY TEAMS HAVE REENGINEERED SOME MANUFACTURING PROCESSES TO IMPROVE PRODUCTIVITY AND PROFIT MARGINS UNDER HIS LEADERSHIP WELDS ON CERTAIN CAR PARTS HAVE BEEN SHORTENED SCRAP METAL PREVIOUSLY TOSSED OUT IS BEING RECYCLED AND MACHINES THAT STAMPED CIRCULAR DESIGNS FROM SQUARE SHEETS OF ALUMINUM CREATING LARGE AMOUNTS OF WASTE HAVE BEEN REDESIGNED SUCH MEASURES RESULTED IN A 250 MILLION REDUCTION IN 1992 OPERATING COSTS THEY HELP EXPLAIN WHY SOME ANALYSTS EXPECT TENNECO TO POST NET INCOME THIS YEAR OF 510 MILLION OR 3 A SHARE LAST YEAR ONETIME ACCOUNTING CHARGES OF 699 MILLION AND AN 843 MILLION CHARGE FOR RESTRUCTURING TENNECO'S CASE UNIT RESULTED IN A NET LOSS OF 132 BILLION IN 1992 TENNECO HAD OPERATING EARNINGS OF 292 MILLION INCLUDING A GAIN OF 71 MILLION FROM DISCONTINUED OPERATIONS COMPARED WITH A 1991 LOSS FROM OPERATIONS OF 692 MILLION THINGS ARE CHANGING SO FAST AT TENNECO THAT MR WALSH CALLS THE NEW PACE WARP SPEED IT IS A PACE PRIMARILY REFLECTIVE OF MR WALSH'S EXTRAORDINARY ENERGY AND IMPATIENCE ALTHOUGH THESE DAYS IT IS ALSO THE PACE OF SOMEONE WHO MAY BE RUNNING OUT OF TIME AT A PRESS CONFERENCE IN JANUARY THE 50YEAROLD MR WALSH CHOKED BACK TEARS AND SAID HE HAD JUST LEARNED THAT HE HAD BRAIN CANCER HE SAYS HE IS FEELING FINE ALTHOUGH HE HAS SHORTENED HIS WORKWEEK TO 50 HOURS FROM 80 TO UNDERGO CHEMOTHERAPY AND RADIATION TREATMENTS HE SAYS HIS DOCTORS ADVISE HIM THAT THE MEDIAN SURVIVAL RATE FOR THOSE WITH HIS CONDITION IS FIVE TO SIX YEARS IT TOOK LESS THAN FIVE YEARS FOR MR WALSH TO ENGINEER A TURNAROUND AT UNION PACIFIC ANOTHER COMPANY WHERE HE ARRIVED AS AN OUTSIDER BEFORE THAT HE WAS AN EXECUTIVE OF CUMMINS ENGINE CO AND A PUBLIC DEFENDER AND US ATTORNEY IN SAN DIEGO HE HOLDS A LAW DEGREE FROM YALE A SELFDESCRIBED ORGANIZATIONAL ARCHITECT MR WALSH TOOK OVER UNION PACIFIC IN OCTOBER 1986 AND IMMEDIATELY SET ABOUT MAKING IT MORE EFFICIENT HE CREATED CROSSFUNCTIONAL TEAMS TO SPUR COOPERATION AMONG DIFFERENT JOB CATEGORIES HE WOOED BACK UNHAPPY SHIPPING CUSTOMERS BY SPEEDING UP RESPONSE TO THEIR NEEDS AND COMPLAINTS HE INCREASED FIELD MANAGERS' AUTHORITY WHILE TAKING AWAY THEIR EXCUSES ABOUT WAITING FOR ORDERS FROM THE HOME OFFICE NOW THE RAILROAD IS WINNING FREIGHT TRAFFIC AND PRAISE FROM CUSTOMERS WHILE SOME RAILROADS HAVE SHRUNK UNION PACIFIC IS EXPANDING CAPACITY ANNUAL EARNINGS HAVE MORE THAN DOUBLED SINCE 1986 WHEN MR WALSH SET THE RAILROAD ON A NEW TRACK ON MR WALSH'S FIRST DAY AT TENNECO HEADQUARTERS IN HOUSTON A UNIFORMED STEWARD APPEARED IN THE EXECUTIVE SUITE TO TAKE BREAKFAST ORDERS THIS BECAME THE FIRST OF SEVERAL EXECUTIVE PERKS PRIVATE DINING ROOMS A YACHT LUXURY CARS AND A FLEET OF JETS TO FALL UNDER THE AX OF MR WALSH IN ANOTHER SYMBOLIC MOVE HE RELOCATED THE CHIEF EXECUTIVE'S OFFICE WHICH UNDER MR KETELSEN HAD BEEN SEQUESTERED BEHIND A SECRETARY'S ROOM AND A CONFERENCE ROOM I WORKED FOR MR KETELSEN 13 YEARS AND NEVER SAW HIS OFFICE SAYS THE CASE UNIT'S PRESIDENT MR CAMPBELL MR WALSH LEFT HIS DOOR OPEN AND SUBORDINATES SOMETIMES FOUND HIM WORKING TO THE PULSATING BEAT OF MICHAEL JACKSON'S BAD ALBUM MR KETELSEN SAYS I THINK I WAS JUST AS ACCESSIBLE AS WALSH IT'S JUST A DIFFERENCE IN STYLES MR WALSH ALSO ELIMINATED A LOT OF PROTOCOL THAT DISTANCED THE CHIEF EXECUTIVE OFFICER FROM THE PLAYING FIELD FOR INSTANCE WHEN HE SUBMITTED TO THE COMPANY MAGAZINE AN ARTICLE ON HIS TURNAROUND PLANS THE EDITOR TOLD HIM THAT TO PRINT IT SHE WOULD HAVE TO GET CLEARANCE THROUGH THREE LAYERS OF BUREAUCRACY NOT ANYMORE MR WALSH TOLD HER YOU'RE LOOKING AT THE NEW APPROVAL PROCESS WORD SPREAD FAST AND THE STREAMLINING OF TENNECO HAD BEGUN KNOWING LITTLE ABOUT TENNECO'S BUSINESSES WORKED TO MR WALSH'S ADVANTAGE IN SOME RESPECTS EAGER TO REDUCE DEBT HE HAD NO TROUBLE SELECTING BUSINESSES FOR DISPOSAL BECAUSE HE WASN'T EMOTIONALLY ATTACHED TO ANY OF THEM WHEN NATURALGAS PIPELINE EXECUTIVES OPPOSED HIS PLAN TO SELL ONE OF THEIR UNITS A MAKER OF A FUELCLEANING SUBSTANCE CALLED MTBE HE LISTENED TO THEIR ARGUMENT AND THEN SOLD THE UNIT FOR 632 MILLION TO THEM IT WAS LIKE BURNING THE FLAG BUT I BARELY KNEW WHAT MTBE WAS I STILL DON'T HE SAYS LIGHTLY PROCEEDS FROM THE SALE WERE USED TO PAY DOWN DEBT WHICH HAS BEEN REDUCED BY 28 SINCE MR WALSH TOOK CHARGE TO INCREASE MANAGEMENT'S EFFECTIVENESS MR WALSH DECIDED ON A SIMPLE STRATEGY SET HIGHER TARGETS ON EVERY MEASURE OF PERFORMANCE AND MAKE MISSING THEM UNACCEPTABLE AT FIRST THAT SOUNDED GOOD TO TENNECO EXECUTIVES BUT THOSE WHO FELL SHORT WERE STUNNED TO FIND THEMSELVES CALLED ON THE CARPET THEY HADN'T THOUGHT MR WALSH REALLY MEANT IT A GLITCH IN THE PRODUCTION OF THE ANNUAL REPORT SHOWED ART HOUSE THE EXECUTIVE IN CHARGE OF THE REPORT JUST HOW FORCEFULLY MR WALSH CAN EXPRESS DISAPPOINTMENT HE BROUGHT IT UP IN A STAFF MEETING WITH LASERBEAM INTENSITY SAYS MR HOUSE WHEN ALL THE FORCE OF HIS INTELLIGENCE AND ENERGY COME TO BEAR YOU BREAK OUT IN PERSPIRATION RICHARD WAMBOLD VICE PRESIDENT OF OPERATIONS AND A 17YEAR TENNECO VETERAN SAYS BEFORE WALSH YOU COULD SAY YOUR RESULTS WERE IN THE HANDS OF THE GODS A GOOD EXCUSE HAD BEEN AN ACCEPTED THING AT THIS COMPANY RECALLING ONE EXCUSE MR WALSH SAYS SOMEONE SAID THEIR PROBLEM WAS THAT IT SNOWED IN WYOMING WELL WHEN DIDN'T THAT HAPPEN THE POINT IS YOU'RE SUPPOSED TO HAVE A PLAN FOR BAD WEATHER MR WALSH SAYS TENNECO EXECUTIVES HAD BECOME USED TO ANALYZING MONTHLY TARGETS AFTER THE MONTH IS OVER AND YOU ALREADY MISSED IT NOW HE REQUIRES WEEKLY FLASH REPORTS CONTAINING NEWS OF THE LAST FEW DAYS AND STATUS REPORTS ON HOW EACH BUSINESS IS PROGRESSING TOWARD FORECASTS FOR THE CURRENT QUARTER ONE RESULT NO MORE SURPRISES TO UPSET WALL STREET I CAN TELL YOU WHERE ALL OUR DIVISIONS STAND AS OF LAST MONDAY TENNECO COULDN'T DO THAT A YEAR AND A HALF AGO SAYS MR WALSH AS HIS TOP LIEUTENANT MR WALSH RECRUITED DANA G MEAD 57 WHO HAD HELPED RESTRUCTURE INTERNATIONAL PAPER CO MR MEAD BECAME CHIEF OPERATING OFFICER AT TENNECO OTHERWISE MR WALSH LEFT EXISTING MANAGERS IN PLACE ALTHOUGH HE DIDN'T EXACTLY INSPIRE AMONG THEM A SENSE OF HARMONY OR SECURITY DIVISIONAL VICE PRESIDENTS WHO PREVIOUSLY HAD MET ONEONONE WITH THE CEO TO REPORT RESULTS GOT THRUST INTO GROUP CONFESSIONALS NOW THEY ARE ENCOURAGED TO OPENLY QUESTION AND CRITICIZE ONE ANOTHER'S PERFORMANCES A PRACTICE THAT SEVERAL ADMIT PROMPTS THEM TO WORK HARDER TO MEET OBJECTIVES MR WALSH'S CALL FOR CHANGE REACHED WELL BELOW THE EXECUTIVE RANKS AT AN ILLINOIS PLANT THAT MAKES 150000 GRAIN HARVESTERS THE FIRST STOP BEYOND THE ASSEMBLY LINE USED TO BE ONE OF 60 REPAIR BAYS BECAUSE IT WAS SIMPLY ASSUMED THAT COMPLETED EQUIPMENT WOULD CONTAIN DEFECTS BUT PROMPTED BY MR WALSH'S CALL FOR IMPROVEMENTS PLANT MANAGER JOSEPH DE SARLA CLOSED THE REPAIR BAYS OVER CHRISTMAS AND REASSIGNED THOSE WORKERS TO THE PRODUCTION LINE TO HELP GET THE PRODUCT RIGHT THE FIRST TIME NOW MR DE SARLA SAYS PRODUCTION AT THE PLANT IS UP 10 AND CUSTOMER COMPLAINTS HAVE FALLEN AT THE LEVEL OF THE RANK AND FILE ALAN DORAN A WORKER AT TENNECO'S PAPERMAKING MILL IN COUNCE TENN SAYS HE WATCHED A HALF DOZEN OF MR WALSH'S VIDEOTAPED MESSAGES CALLING FOR INNOVATIVE IDEAS THUS SPURRED MR DORAN REFINED A 30YEAROLD FORMULA OF WOOD CHIPS AND CHEMICALS USED TO MAKE LINER BOARD THE RESULT FEWER DEFECTS AND A 350000 ANNUAL SAVING ANOTHER PAPER MILL VETERAN BOB EVANS REDUCED THE CHRONIC BREAKAGE OF LOG CHAINS BY MODIFYING SOME LONGIGNORED FASTENERS TENNECO SAYS THE CHANGE SAVED THE PLANT 353000 LAST YEAR THE OLD ADAGE AT MILLS LIKE THIS USED TO BE WE HIRED YOU FROM THE NECK DOWN' WALSH TREATS US LIKE WE HAVE MINDS SAYS MR EVANS NO ONE LEAST OF ALL MR WALSH IS CALLING THE TURNAROUND AT TENNECO COMPLETE THE FLAT FARM ECONOMY IS EXPECTED TO KEEP AGRICULTURAL MACHINERY OPERATIONS IN THE RED SEVERAL MORE QUARTERS AND DEFENSE CUTBACKS HAVE THE SHIPBUILDING DIVISION SCRAMBLING TO FIND CIVILIAN CUSTOMERS BECAUSE OF THOSE AND OTHER PROBLEMS ANALYSTS ARE CAUTIOUS IN THEIR OPTIMISM TENNECO STOCK TRADES AT AROUND 46 A SHARE COMPARED WITH 33 WHEN MR WALSH ARRIVED BUT ANALYSTS APPLAUD MR WALSH'S HEADON APPROACH TO ADVERSITY ONLY DAYS AFTER ARRIVING AT TENNECO IN 1991 HE INVITED THEM TO A MEETING TO ANNOUNCE A 427 MILLION CHARGE AGAINST EARNINGS A HALVING OF THE PREVIOUSLY SACROSANCT DIVIDEND AND A 1 BILLION SALE OF NONCORE ASSETS WALSH STEPPED RIGHT UP TO THE PODIUM RECALLS DAVID FLEISCHER AN ANALYST AT GOLDMAN SACHS & CO AND STARTED SAYING I'M DOING ALL THESE THINGS' IT WAS ALL ME' NOT WE' AND YOU HAD TO KNOW AFTER A MINUTE OR SO THAT THIS COMPANY WAS ALREADY MUCH DIFFERENT IN A SIMILAR STEP TAKEN JUST DAYS AGO MR WALSH REVISED 1992 RESULTS IN A WAY THAT TURNED A PROFIT INTO A 132 BILLION LOSS FAR FROM ARISING FROM ANY PREVIOUSLY UNKNOWN PROBLEMS HOWEVER THE MOVE CAME BECAUSE OF ACCOUNTING AND RESTRUCTURING CHARGES THAT ANALYSTS HAD EXPECTED TO WEIGH DOWN FUTURE EARNINGS NOW ANALYSTS SAY THE WAY IS CLEARED FOR A HUGELY PROFITABLE 1993 FORMER CHAIRMAN KETELSEN PRAISES THE PERFORMANCE BUT SAYS THAT THE GROUNDWORK FOR STRONGER RESULTS HAD BEEN LAID BEFORE THE ARRIVAL OF MR WALSH WHOM HE CALLS A CATALYST WHY DIDN'T MR KETELSEN INITIATE THE CHANGES HIMSELF HE SAYS A FRESH EYE WAS NEEDED AND I HAD TOLD THE BOARD THAT I WANTED TO RETIRE SOME EMPLOYEES ARE CRITICAL OF MR WALSH FOR SQUEEZING COSTS INCLUDING CUTTING 10000 JOBS IN THE SHIPBUILDING AND FARMEQUIPMENT UNITS WHILE BEING PAID 17 MILLION A YEAR MR WALSH SAYS HE BARELY BARGAINED WITH TENNECO DIRECTORS OVER THEIR ORIGINAL OFFER OTHER EMPLOYEES ARE LESS CONCERNED ABOUT MR WALSH'S PAY THAN HIS HEALTH SINCE HE TOOK CHARGE AFTER ALL THE FOUR TENNECO DIVISIONS BESIDES SHIPBUILDING AND FARM EQUIPMENT HAVE BEGUN HIRING AND PAYING OVERTIME IN HIS LATEST VIDEOTAPED PEP TALKS THE LEAN WEIGHTLIFTING CEO APPEARS IN SHIRT SLEEVES TO DECLARE I'M ABSOLUTELY SYMPTOMLESS EXCEPT THAT I DRAG MY FOOT IN A VERY MINOR WAY THIS FROM THE LEADER WHO MADE FOOTDRAGGING UNACCEPTABLE AT TENNECO SAYS MR EVANS THE PAPER MILL WORKER WITH OR WITHOUT HIM WE CAN'T GO BACK 9303290168 930329 BUSINESS BRIEF AMERICAN STORES UNIT CITES POSSIBLE LIABILITY OF ABOUT 90 MILLION DUBLIN CALIF LUCKY STORES INC WHICH WAS FOUND GUILTY LAST SUMMER OF DISCRIMINATING AGAINST FEMALE EMPLOYEES SAID IT MAY BE LIABLE FOR ABOUT 90 MILLION OF BACK PAY AND ASKED A FEDERAL COURT TO REMOVE THE JUDGE WHO'S ASSESSING DAMAGES IN THE CASE DAMAGES HAVEN'T YET BEEN FORMALLY SET IN THE CASE A CLASSACTION THAT ALLEGED THAT THE GROCERY STORE CHAIN MAROONED WOMEN IN LOWPAYING JOBS WHILE PROMOTING MEN LUCKY IS A UNIT OF AMERICAN STORES INC SALT LAKE CITY LUCKY SAID THE METHOD FEDERAL JUDGE MARILYN PATEL IS USING TO CALCULATE HOW MUCH BACK PAY THE PLAINTIFFS ARE OWED IS UNFAIR UNDER THAT METHOD LUCKY ESTIMATES IT WOULD HAVE TO PAY 90 MILLION PLUS INTEREST THE COMPANY ALSO ACCUSED JUDGE PATEL OF MAKING NUMEROUS ERRORS OF LAW IN CONDUCTING THE CASE PLAINTIFFS IN THE CASE HAVE ASKED FOR A TOTAL OF 155 MILLION IN ACTUAL DAMAGES IN ADDITION TO THE CLAIMS FOR BACK PAY THE PLAINTIFFS ARE SEEKING COMPENSATION FOR EMOTIONAL DISTRESS AMONG OTHER THINGS THEY'RE ALSO SEEKING PUNITIVE DAMAGES LUCKY SAID IT TOOK THE UNUSUAL STEP OF FILING AN APPEAL WITH THE NINTH CIRCUIT COURT OF APPEALS IN SAN FRANCISCO SEEKING TO HAVE JUDGE PATEL REMOVED FROM THE CASE EVEN THOUGH SHE HAS YET TO FORMALLY RULE ON DAMAGES LUCKY ALLEGED IN ITS APPEAL THAT JUDGE PATEL HAS MADE 20 SEPARATE LEGAL ERRORS DURING THE LONGRUNNING CASE AND SAID ADDITIONAL PROCEEDINGS BEFORE HER WOULD BE POINTLESS AND WASTEFUL GIVEN THE RECORD OF CLEAR ERROR IN THE CASE IF THE NINTH CIRCUIT AGREES TO RULE ON THE APPEAL IT COULD CONCEIVABLY ORDER A NEW TRIAL OVER THE PLAINTIFFS' ORIGINAL ALLEGATIONS OF WIDESPREAD DISCRIMINATION AGAINST WOMEN IN LATE NEW YORK STOCK EXCHANGE TRADING FRIDAY AMERICAN STORES WAS QUOTED AT 4050 DOWN 875 CENTS 9303290167 930329 INTERNATIONAL CLINTON WEIGHS 1 BILLION MORE IN RUSSIAN AID BY DAVID WESSEL AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING ASKING CONGRESS FOR AS MUCH AS 1 BILLION IN NEW MONEY FOR RUSSIA AS PART OF A STEPPEDUP INTERNATIONAL AID EFFORT CLINTON OFFICIALS SAID THE AID THAT US OFFICIALS ARE DISCUSSING IS ON TOP OF THE 700 MILLION THAT THE ADMINISTRATION HAS SAID IT WOULD SEEK FROM NEXT YEAR'S FOREIGNAID BUDGET ONE SERIOUS OPTION IS TO SUBMIT A SUPPLEMENTAL SPENDING REQUEST BUT ANY NEW FOREIGNAID REQUEST IS EXPECTED TO PRODUCE A STRONG PUBLIC OUTCRY AND WILL PROBABLY COME ONLY AFTER CONGRESS PASSES MR CLINTON'S ECONOMIC STIMULUS THE ADMINISTRATION WILL ALSO WAIT TO SEE WHETHER EUROPE AND JAPAN ARE WILLING TO RAISE THEIR CONTRIBUTIONS PRESIDENT CLINTON SAID FRIDAY THAT HE HASN'T MADE A FINAL DECISION ON THE SIZE OF THE PLAN HE WILL OUTLINE TO RUSSIAN PRESIDENT BORIS YELTSIN AT THEIR SUMMIT SCHEDULED FOR THIS WEEKEND IN VANCOUVER BRITISH COLUMBIA BUT SAID IT WILL BE BROADBASED AND COMPREHENSIVE US OFFICIALS ARE OPTIMISTIC THAT THE JAPANESE WHO HAVE BEEN RELUCTANT TO SEND MONEY TO RUSSIA MAY NOW BE PREPARED TO COME UP WITH AS MUCH AS 3 BILLION FOR A NEW PACKAGE TO BE PROVIDED BY THE GROUP OF SEVEN INDUSTRIALIZED COUNTRIES JAPAN CONFIRMED LAST WEEK THAT G7 FOREIGN AND FINANCE MINISTERS ARE TO MEET IN TOKYO APRIL 14 AND 15 TO DISCUSS RUSSIA ADMINISTRATION OFFICIALS SPENT THE WEEKEND REVIEWING POSSIBLE AID PROGRAMS UNDER CONSIDERATION ARE A FUND TO ENCOURAGE THE GROWTH OF SMALL PRIVATE ENTERPRISES LOAN GUARANTEES TO HELP FINANCE NEW HOUSING FOR RUSSIAN SOLDIERS AND WAYS TO REBUILD DECAYING OIL AND GAS INDUSTRIES OFFICIALS SAID VICE PRESIDENT ALBERT GORE HAS SUGGESTED THE US EARMARK A SIGNIFICANT AMOUNT OF AID TO IMPROVE THE SAFETY OF RUSSIAN NUCLEAR REACTORS AND FOR ENVIRONMENTAL CLEANUP PROGRAMS PROJECTS THAT COULD RUN IN THE TENS OR HUNDREDS OF MILLIONS OF DOLLARS INFLUENTIAL CONGRESSIONAL DEMOCRATS HAVE TOLD THE WHITE HOUSE THAT APPROPRIATING MORE MONEY FOR RUSSIA WILL BE DIFFICULT UNTIL THE ADMINISTRATION SHOWS IT IS SPENDING FUNDS ALREADY APPROPRIATED BECAUSE OF BUREAUCRATIC PROBLEMS IN RUSSIA AND THE US ONLY A SMALL PORTION OF THE 800 MILLION ALREADY ALLOCATED BY CONGRESS TO UNDERWRITE RUSSIAN DENUCLEARIZATION HAS BEEN SPENT AND THERE ARE STILL SEVERAL HUNDRED MILLION DOLLARS OF UNSPENT TECHNICAL AND HUMANITARIAN ASSISTANCE FUNDS MEANWHILE THE US IS INTENSIFYING EFFORTS TO GET THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK TO COME UP WITH MORE MONEY FOR RUSSIA SOME US GOVERNMENT ARMS ARE PRESSING THE IMF TO SET EASIER TERMS FOR RUSSIA BUT EUROPEANS ARE UNEASY ABOUT THE PRECEDENT 9303290166 930329 MEMBERS OF HEALTHREFORM TASK FORCE WASHINGTON AP HERE IS THE LIST PROVIDED BY THE WHITE HOUSE OF MEMBERS OF THE PRESIDENT'S TASK FORCE ON HEALTH CARE REFORM THE LIST IS DIVIDED INTO FULLTIME GOVERNMENT EMPLOYEES INCLUDING THOSE WHO WORK FOR MEMBERS OF CONGRESS PARTTIME GOVERNMENT EMPLOYEES AND CONSULTANTS THE LIST INCLUDES ALL INFORMATION THAT THE WHITE HOUSE PROVIDED ABOUT THE PLACE OF EMPLOYMENT OR EMPLOYER ADLER MICHELE DEPARTMENT OF HEALTH AND HUMAN SERVICES' HHS OFFICE OF PLANNING AND EVALUATION ALBERGHINI THERESA A STAFF OF SEN PATRICK LEAHY D VT ALLEN LUCY COUNCIL OF ECONOMIC ADVISERS ALPERT CYNTHIA DEPARTMENT OF VETERANS AFFAIRS ALTMAN DAVID STAFF OF SEN JAY ROCKEFELLER D WVA ALTMIRE JASON STAFF OF REP PETE PETERSON D FLA ARONS BERNIE NATIONAL INSTITUTES OF MENTAL HEALTH ATKINSON LESLIE STAFF OF REP LOUIS STOKES D OHIO BAILY SARAH STAFF OF SEN DON RIEGEL D MICH BARBOUR GALEN DEPARTMENT OF VETERANS AFFAIRS BARSTOW SCOTT STAFF OF REP MIKE KOPETSKI D ORE BEASON CHARLOTTE DEPARTMENT OF VETERANS AFFAIRS BERNER JOHN COUNCIL OF ECONOMIC ADVISERS BERRY ROGER STAFF OF REP HARRY JOHNSTON D FLA BIERUM DENISE SENATE STAFF BIERWIRTH MARGARET STAFF OF REP SAM GEJDENSEN D CONN BILLY CARRIE STAFF OF SEN BINGAMAN D NM BLAUWET ROGER STAFF OF REP PETER HOAGLAND D NEB BLOCK ABIGAIL OFFICE OF PERSONNEL MANAGEMENT BLOOM FELICIA STAFF OF REP LOUISE SLAUGHTER D NY BOEHM JENNIFER STAFF OF REP JILL LONG D IND BROCK CHARLES DEPARTMENT OF DEFENSE BRODBECK LAURA STAFF OF REP DAVE MCCURDY D OKLA BRUNS KEVIN FORMERLY STAFF OF FORMER REP BILL GRAY D PA BUONORA DAVID STAFF OF REP BARBARA KENNELLY D CONN BURNETT LAIRD STAFF OF SEN JOHN BREAUX D LA CAPLAN ARTHUR UNIVERSITY OF NEW MEXICO CAVANAUGH SEAN STAFF OF REP BEN CARDIN D MD CHAMBERS CAROLINE STAFF OF REP JIM COOPER D TENN CHANG DEBORAH STAFF OF SEN DONALD RIEGLE D MICH CHARLES GERALD DEPARTMENT OF VETERANS AFFAIRS CLARK WILLIAM STAFF OF SEN DALE BUMPERS D ARK CLAY JIMMIE DEPARTMENT OF VETERANS AFFAIRS CLEMENTE FRANK STAFF OF REP JOHN CONYERS D MICH COHEN RIMA STAFF OF SEN TOM DASCHLE D SD COSTER JOHN SELECT COMMITTEE ON AGING COX KENNETH DEPARTMENT OF DEFENSE CRUMP JANICE STAFF OF REP EVA CLAYTON D NC CUTLER DAVID COUNCIL OF ECONOMIC ADVISERS DAVENPORT KAREN STAFF OF SEN BOB KERREY D NEB DAVIES MONICA STAFF OF SEN BINGAMAN DENHAM LORI STAFF OF REP CALVIN DOOLEY D CALIF DONESKI ELLEN STAFF OF SEN JAY ROCKEFELLER D WVA DOROTINSKY WILLIAM OFFICE OF MANAGEMENT AND BUDGET DUNN VAN STAFF OF SEN EDWARD KENNEDY D MASS ECKERT KEVIN STAFF OF SEN HARRIS WOFFORD D PA EINHORN THEODORE STAFF OF REP PETER DEUTSCH D FLA EMMER SUSAN STAFF OF SEN BOB GRAHAM D FLA EVANS JENNIFER STAFF OF SEN BEN CAMPBELL D COLO EYDT ALLISON OFFICE OF MANAGEMENT AND BUDGET FALETTI THOMAS STAFF OF REP DICK DURBIN D ILL FINIGAN THOMAS STAFF OF SEN MAX BAUCUS D MONT FISH JAMES OFFICE OF MANAGEMENT AND BUDGET FISKE MARY BETH STAFF OF SEN KENNEDY FLYNN WILLIAM OFFICE OF PERSONNEL MANAGEMENT FORBES RIPLEY STAFF OF REP HENRY A WAXMAN D CALIF FRANTZ MOLLY STAFF OF REP EARL POMEROY D ND FRASCHE MARY STAFF OF REP DAN GLICKMAN D KAN FREDERICK PAUL DEPARTMENT OF DEFENSE GALE JOSEPH STAFF OF SEN DANIEL PATRICK MOYNIHAN D NY GAUDETTE SYLVIA STAFF OF REP JOHN OLVER D MASS GLAZE STEVEN STAFF OF SEN DAVID PRYOR D ARK GLIED SHERRY COUNCIL OF ECONOMIC ADVISERS GOLDWATER DAVID STAFF OF REP JIM BILBRAY D NEV GOODWIN MARSHA DEPARTMENT OF VETERANS AFFAIRS GRAMS TODD OFFICE OF MANAGEMENT AND BUDGET GROSS LAUREN STAFF OF SEN CLAIBORNE PELL D RI GRUNDMAN MARTHA STAFF OF REP MARTIN SABO D MINN GUST STEVEN STAFF OF REP TED STRICKLAND D OHIO HAHON MELINDA STAFF OF SENATE JUDICIARY ANTITRUST SUBCOMMITTEE HAMERSCHLAG ART DEPARTMENT OF VETERANS AFFAIRS HARPER MARY NATIONAL INSTITUTES OF MENTAL HEALTH HARRIS SKILA OFFICE OF THE VICE PRESIDENT HASH MICHAEL STAFF OF REP WAXMAN HAYES CHARLOTTE OFFICE OF THE VICE PRESIDENT HAYES SHERRY STAFF OF SEN HERB KOHL D WIS HEADLEY ELWOOD DEPARTMENT OF VETERANS AFFAIRS HIGGINS MICHAEL STAFF OF HOUSE ARMED SERVICES COMMITTEE HOGUE BONNIE STAFF OF SENATE AGING COMMITTEE HOLTON DWIGHT WHITE HOUSE STAFF HUCKABY MICHELLE STAFF OF REP BOB CLEMENT D TENN HUNAN JEFFREY SENATE COMMITTEE ON AGING IBSEN RALPH DEPARTMENT OF VETERANS AFFAIRS IRWIN JEAN STAFF OF REP MARIA CANTWELL D WASH ISKOWITZ MICHAEL STAFF OF SEN KENNEDY JACOBSON LAURENCE OFFICE OF MANAGEMENT AND BUDGET JARBOE KENAN STAFF OF SEN RIEGLE JODREY DARREL STAFF OF SEN HARRIS WOFFORD D PA JOHNSON K SCHELEEN STAFF OF REP JOHN BRYANT D TEXAS JOHNSON ERIK OFFICE OF MANAGEMENT AND BUDGET JOHNSON JAMES STAFF OF REP LF PAYNE D VA JONES SANDRA DEPARTMENT OF VETERANS AFFAIRS JONES MARCIA STAFF OF SEN BREAUX JOSEPHFOX YVETTE STAFF OF SEN DANIEL K INOUYE D HAWAII JUNG PAUL NATIONAL INSTITUTES OF HEALTH KANE BRAD HOUSE STAFF KATTAN AZAR STAFF OF REP ROBERT MATSUI D CALIF KATZ RUTH STAFF OF REP WAXMAN KEENE BRAD HOUSE ENERGY AND COMMERCE SUBCOMMITTEE KENDALL DAVID STAFF OF REP MICHAEL ANDREWS D TEXAS KEPNER COLLEEN STAFF OF REP CHARLES STENHOLM D TEXAS KERY PATRICIA STAFF OF REP BARBARA KENNELLY D CONN KICHAK NANCY OFFICE OF PERSONNEL MANAGEMENT KING ANDREA STAFF OF HOUSE MAJORITY LEADER DICK GEPHARDT D MO KOLODNER ROBERT DEPARTMENT OF VETERANS AFFAIRS KOPLAN JEFFREY CENTERS FOR DISEASE CONTROL KOSS SHANNAH OFFICE OF MANAGEMENT AND BUDGET KUZMACK RICHARD OFFICE OF MANAGEMENT AND BUDGET LANGENBRUNNER JACK OFFICE OF MANAGEMENT AND BUDGET LEATHERS HOWARD COUNCIL OF ECONOMIC ADVISERS LEHMAN LAURENCE DEPARTMENT OF VETERANS AFFAIRS LEHMANN LAURENT DEPARTMENT OF VETERANS AFFAIRS LEVINE GREGORY STAFF OF REP ROSA DELAURO D CONN LILLIE STEVEN DEPARTMENT OF DEFENSE LINK KENNETH DEPARTMENT OF VETERANS AFFAIRS LIPNER ROBYN STAFF OF SEN BARBARA MIKULSKI D MD LIU ERIC STAFF OF SEN DAVID BOREN D OKLA LOPATIN ALAN HOUSE EDUCATION AND LABOR COMMITTEE LUCAS DEBORAH COUNCIL OF ECONOMIC ADVISERS LURIE ALEXANDER SENATE STAFF LUTTBEG CAROLINE STAFF OF REP RONALD COLEMAN D TEXAS LUTTER RANDALL OFFICE OF MANAGEMENT AND BUDGET LYON ANDREW COUNCIL OF ECONOMIC ADVISERS LYON RANDOLPH OFFICE OF MANAGEMENT AND BUDGET MAGUIRE DANIEL DEPARTMENT OF LABOR MALONEY DANIEL DEPARTMENT OF VETERANS AFFAIRS MANTEL LEWIS DEPARTMENT OF VETERANS AFFAIRS MARTINEZ FELIX STAFF OF REP BILBRAY MATHER SUSAN DEPARTMENT OF VETERANS AFFAIRS MCCLENNEYELLIO LUCRETIA DEPARTMENT OF DEFENSE MCCONNELL BRUCE OFFICE OF MANAGEMENT AND BUDGET MCKEE TIMOTHY DEPARTMENT OF DEFENSE MCKENNEY NAMPEO DEPARTMENT OF COMMERCE MEADOW CYNTHIA STAFF OF REP JACK BROOKS D TEXAS MERGHEAY JANET STAFF OF REP LOUISE SLAUGHTER D NY MILLER MICHAEL STAFF OF REP SANDER LEVIN D MICH MIN NANCYANN OFFICE OF MANAGEMENT AND BUDGET MINK DOUGLAS STAFF OF REP NANCY JOHNSON R CONN MOLLOY JANE DEPARTMENT OF COMMERCE MORGAN JACQUELINE DEPARTMENT OF DEFENSE MUNNELL ALICIA DEPARTMENT OF TREASURY MURPHY SHEILA STAFF OF SEN KERREY NAKAHATA PETER OFFICE OF MANAGEMENT AND BUDGET NELSON KAREN STAFF OF REP WAXMAN NEUMAN TRICIA HOUSE WAYS AND MEANS NEXON DAVID STAFF OF SEN KENNEDY NICHOLS LEN OFFICE OF MANAGEMENT AND BUDGET NICHOLS LINDA DEPARTMENT OF VETERANS AFFAIRS NIX SHIELA STAFF OF SEN KERREY NORMAN ALLINE DEPARTMENT OF VETERANS AFFAIRS O'NEILL PATRICIA DEPARTMENT OF VETERANS AFFAIRS OBEY CRAIG STAFF OF SEN KENT CONRAD D ND PATEL PARASHAR OFFICE OF MANAGEMENT AND BUDGET PAYNE MARY ELLA STAFF OF SEN ROCKEFELLER PRATT DONALD DEPARTMENT OF VETERANS AFFAIRS PRICE ANDREA STAFF OF REP LEWIS PAYNE D VA RADACK LAURA DEPARTMENT OF JUSTICE RAFUSE ROBERT DEPARTMENT OF THE TREASURY RAYMOND VICTOR DEPARTMENT OF VETERANS AFFAIRS REINECKE PETER STAFF OF SEN TOM HARKIN D IOWA RICE CHERI OFFICE OF MANAGEMENT AND BUDGET RICKEL ANNETTE STAFF OF SEN RIEGLE RODRIQUEZ LOUISE DEPARTMENT OF VETERANS AFFAIRS ROSEN ROBERT STAFF OF SEN GEORGE MITCHELL D MAINE ROSWELL ROBERT DEPARTMENT OF VETERANS AFFAIRS RYAN ELAINE STAFF OF REP SLAUGHTER SAMUELSON ELLEN STAFF OF REP SABO SCHNEIDER ANDREW STAFF OF REP WAXMAN SCHULKE DAVID STAFF OF REP RON WYDEN D ORE SCHUSTER JAMES STAFF OF REP TED STRICKLAND SHAFFER ELLEN STAFF OF SEN PAUL WELLSTONE D MINN SHEINER LOUISE STAFF OF CONGRESSIONAL JOINT COMMITTEE ON TAXATION SHELDON GEORGE DEPARTMENT OF VETERANS AFFAIRS SHINN RUTH DEPARTMENT OF LABOR SHORT ELIZABETH DEPARTMENT OF VETERANS AFFAIRS SHRIBER DONALD HOUSE STAFF SILVER JONATHAN DEPARTMENT OF COMMERCE SIMON MARSHA STAFF OF SEN KENNEDY SISKIND FRED DEPARTMENT OF LABOR SLACKMAN JOEL DEPARTMENT OF DEFENSE SMITH CURTIS OFFICE OF PERSONNEL MANAGEMENT SMITH MARY BETH DEPARTMENT OF VETERANS AFFAIRS SOBEL LAWRENCE DEPARTMENT OF DEFENSE SOCHALSKI JULIE STAFF OF SEN BILL BRADLEY D NJ SOLOMON LOEL STAFF OF SEN KENNEDY SPAULDING VERNON DEPARTMENT OF DEFENSE SPRINGER MICHAEL DEPARTMENT OF THE TREASURY STANTON TAMERA STAFF OF SEN ROCKEFELLER STEELE PAMELA DEPARTMENT OF VETERANS AFFAIRS STEINAUER DENNIS DEPARTMENT OF COMMERCE SUCHINSKY RICHARD DEPARTMENT OF VETERANS AFFAIRS SVENONIUS DIANE DEPARTMENT OF LABOR SWIRE ANDREW OFFICE OF MANAGEMENT AND BUDGET SYKES KATHERINE STAFF OF REP DAVID OBEY D WIS TAUEBER CYNTHIA DEPARTMENT OF COMMERCE TERRY DONALD STAFF OF REP JOHN LAFALCE D NY TESTONI MAUREEN SENATE STAFF TIBBITTS PAUL DEPARTMENT OF DEFENSE TRAPNELL GORDON STAFF OF HOUSE WAYS AND MEANS COMMITTEE UKOCKIS JAMES DEPARTMENT OF THE TREASURY VARMA VIVEK HOUSE STAFF VARNHAGEN MICHELE STAFF OF SEN HOWARD METZENBAUM D OHIO VETTLER SUSAN STAFF OF REP TED STRICKLAND VISTNES GREG DEPARTMENT OF JUSTICE WALTERS KAREN DEPARTMENT OF VETERANS AFFAIRS WASSERMAN MARK OFFICE OF MANAGEMENT AND BUDGET WEICH RONALD STAFF OF SENATE LABOR AND HUMAN RESOURCES COMMITTEE WEISS MARINA DEPARTMENT OF THE TREASURY WEISS GAIL STAFF OF HOUSE APPROPRIATIONS TREASURY AND POSTAL SUBCOMMITTEE WERNER MICHAEL STAFF OF SENATE DEMOCRATIC POLICY COMMITTEE WESTMORELAND TIM STAFF OF REP WAXMAN WILLIAMS CHRISTINE STAFF OF SEN MITCHELL WILLIAMSON JONATHAN DEPARTMENT OF VETERANS AFFAIRS WILLS DARRYL COUNCIL OF ECONOMIC ADVISERS WILSON FRANK DEPARTMENT OF LABOR WILSON MARK DEPARTMENT OF LABOR WOO MICHAEL STAFF OF HOUSE ENERGY AND COMMERCE COMMITTEE WOOD SUSAN STAFF OF CONGRESSIONAL WOMEN'S CAUCUS WYLER ROBERT OFFICE OF MANAGEMENT AND BUDGET YAMAMOTO ALAN STAFF OF NEIL ABERCROMBIE D HAWAII ZETTLER SUSAN STAFF OF REP STRICKLAND DAUMIT GAIL POLICY ASSISTANT FRANK RICHARD NATIONAL INSTITUTE OF MENTAL HEALTH GATZ CAROLYN DEPARTMENT OF COMMERCE GEHAN MARGERY POLICY ASSISTANT GIBSON JOAN UNIVERSITY OF NEW MEXICO GOSTIN LAWRENCE AMERICAN SOCIETY OF LAW MEDICINE & ETHICS HIX WILLIAM DEPARTMENT OF DEFENSERAND KELLEY LAUREN POLICY ASSISTANT KLEIN JENNIFER POLICY ASSISTANT LANTOS JOHN UNIVERSITY OF CHICAGO LAWLER GREGORY POLICY ASSISTANT LEVINE DEBORAH POLICY ASSISTANT LO BERNARD UNIVERSITY OF CALIFORNIA MANOWITZ MICHELE POLICY ASSISTANT MILES STEVE HENNIMEN COUNTY MINN COUNTY GOVERNMENT OTRIN SUSAN POLICY ASSISTANT PICILLO THERESA POLICY ASSISTANT ROSS MARJORIE POLICY ASSISTANT RUESCHEMEYER SIMONE DEPARTMENT OF COMMERCE STOLINE ANNE POLICY ASSISTANT WELCH WILLIAM PE OFFICE OF MANAGEMENT AND BUDGET WELLFORD SUSANNAH POLICY ASSISTANT SEE RELATED STORY POLITICS & POLICY WHITE HOUSE RELEASES NAMES OF PEOPLE WORKING ON HEALTHREFORM TASK FORCE WSJ MARCH 29 1993 9303290165 930329 ONCE AGAIN ADS WOO TEENS WITH SLANG BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL TEEN NO 1 SUP G HOW YA LIVIN TEEN NO 2 LIVIN LARGE SWEAT THAT SUIT IS DOPE LOOKING FOR SOME PHAT TEEN NO 1 NAH THEY WON'T GIVE UP THE DIGITS I'M NOT ABOUT TO GET KICKED TO THE CURB TEEN NO 2 I SMELL YA SO WHAT'S THE 411 THE 411 OR LATEST NEWS AND INFORMATION IS THAT THE JARGON OF THE PUBERTYSOMETHING CROWD IS TODAY MORE PERVASIVE MORE SOPHISTICATED AND FAR MORE COMPLEX THAN EVER BEFORE THE OFFSPRING OF RAP MUSIC AND HIPHOP CULTURE SLANGUAGE A TYPE OF GRITTY URBANSPEAK HAS BEEN EMBRACED BY INNERCITY YOUTHS HOMEYS AND SUBURBAN TEENS BRADYS ALIKE MOVIES LIKE THE JUSTRELEASED CB 4 FLAUNT IT TELEVISION SHOWS LIKE IN LIVING COLOR AND YO MTV RAPS HELP DISPERSE IT ARSENIO HALL USES SOMETHING AND THE NEXT DAY THE KIDS ARE USING IT SAYS CONNIE EBLE A LINGUISTICS PROFESSOR AT THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL EDUCATORS SEARCHING FOR EXPLANATIONS FOR SLANG'S EXPLOSIVE GROWTH AMONG THE NATION'S YOUTH FIND SOME OF THEIR ANSWERS IN SOCIOLOGY THE YOUNG OF COURSE HAVE ALWAYS TRIED TO STAND APART FROM THE OLD ANYONE PUSHING 30 BUT THE CHILDREN OF THE 1990S BELONG TO THE CHILDREN OF THE 1960S A GENERATION WHOSE APPARENT WILLINGNESS TO ACCEPT THE TV SHOWS THEIR KIDS WATCH THE CLOTHES THEY WEAR AND THE MUSIC THEY LISTEN TO MEANS THAT TODAY'S YOUTH ARE LEFT WITH AN UNLIKELY PROBLEM WHERE TO REBEL LANGUAGE IS THE LAST UNASSAILABLE FRONT FOR KIDS SAYS IRINA HEIRAKUJI A TEENAGEMARKETING RESEARCHER IN NEW YORK IT IS AN AREA WHERE KIDS CAN DO SOMETHING DEMONSTRABLY DIFFERENT FROM THEIR PARENTS AND FEEL THEY OWN IT BEYOND GENERATIONAL DIFFERENCES HOWEVER IS WHAT MS HEIRAKUJI CALLS THE SOUNDBYTING OF DATA TODAY'S CHILDREN SHE SAYS WHO HAVE GROWN UP IN THE VIDEO AGE APPEAR TO PROCESS INFORMATION MUCH MORE QUICKLY THAN THEIR PREDECESSORS AS A RESULT MANY ADOLESCENTS HAVE LITTLE PATIENCE FOR LENGTHY SPEECHES AND LONGWINDED EXPLANATIONS WHEN QUICK WORDS AND SNAPPY PHRASES WILL DO IF I TELL A GIRLFRIEND THAT GUY IS JUST OUT FOR HIMSELF BE CAREFUL 'CAUSE HE JUST WANTS TO SLEEP WITH YOU' THAT WOULD TAKE TOO LONG SAYS IMMACULATA REYNOSA AGE 19 IN PROVIDENCE RI IF I SAY HE'S THE MACK' SHE'LL KNOW WHAT I MEAN A SAN FRANCISCO AD AGENCY REPORTS LANGUAGE ISN'T THE ONLY PLACE WHERE THE ACCELERATED THOUGHT PROCESS IS SHOWING UP WHEN THE AGENCY GOODBY BERLIN & SILVERSTEIN SHOWED SOME 40 KIDS A FLURRY OF IMAGES INCLUDING FLASHES OF ROCKETS SHOOTING OFF AND CARS RACING BY OBSERVERS WERE STUNNED TO NOTE THAT THE CHILDREN ON AVERAGE REMEMBERED 70 OF WHAT THEY HAD SEEN MEMO TO MAJOR LEAGUE BASEBALL KIDS HAVE BECOME SO INTERESTED IN ACCELERATED IMAGES THAT THE US PASTIME IS LOSING THE ALLEGIANCE OF SOME TEENAGE BOYS BECAUSE IT'S TOO SLOW SAYS IRMA ZANDL PRESIDENT OF ZANDL GROUP A MARKETRESEARCH FIRM IN NEW YORK THIS IS LIFE IN THE 20TH CENTURY SAYS JEFF GOODBY COCHAIRMAN AND CREATIVE DIRECTOR OF GOODBY BERLIN & SILVERSTEIN WE'VE CREATED A WHOLE GENERATION OF KIDS WHO ARE BETTER AT PROCESSING THIS STUFF BECAUSE THEY'RE USED TO BEING BOMBARDED WITH DISPARATE IMAGES IT SHOWS UP IN THE WAY THEY THINK THE WAY THEY TALK NONE OF WHICH HAS BEEN LOST ON ADVERTISERS SLANG IF USED PROPERLY AND IN A TIMELY FASHION CAN PROVE TO YOUNG VIEWERS AND LISTENERS THAT MARKETERS HAVE DONE THEIR HOMEWORK SAYS JANA O'BRIEN VICE PRESIDENT AND GROUP RESEARCH DIRECTOR IN THE CHICAGO OFFICE OF LEO BURNETT CO THE AD AGENCY PEPSICO INC'S RECENT CHILL OUT COMMERCIALS WHICH FEATURED YOUNG PEOPLE CHILLING ON THE BEACH WITH PEPSI WAS A SUCCESS BECAUSE PEPSI APPEARED RELEVANT AND UP TO DATE SAYS PETER ZOLLO PRESIDENT OF TEENAGE RESEARCH UNLIMITED IN LAKE FOREST ILL SIMILARLY MCDONALD'S CORP'S BOYS ON THE BLOCK COMMERCIAL USES SLANG THAT HAS DEMONSTRATED STAYING POWER FRESH SUP AND THE EVERPOPULAR WORD CURRENT SHORTHAND FOR I CAN RELATE TO THAT THE TRULY HIP MARKETING COMPANIES ARE ON THE CUTTING EDGE WITH THIS STUFF SAYS RENA KARL MANAGING EDITOR OF MARKETING TO KIDS REPORT A MARKETING REPORT BASED IN ENCINITAS CALIF OF COURSE THE NEW SLANGUAGE CAN JUST AS EASILY TRIP MARKETERS UP JUST ASK ED VOLKWEIN A SENIOR VICE PRESIDENT AT SEGA ENTERPRISES LTD THE 50YEAROLD MARKETING EXECUTIVE HAD APPROVED A TV COMMERCIAL FOR THE COMPANY'S VIDEO GAMES IN WHICH AN ACTOR USED THE SLANG EXPRESSION WORD A GROUP OF TEENAGERS HOWEVER AFTER WATCHING THE SPOT IN A FOCUS GROUP TOLD MR VOLKWEIN THAT WORD IS HIP ONLY IF ACCOMPANIED BY THE MOTION OF WRAPPING ONE'S ARMS AROUND ONESELF BY CONTRAST THE SEGA COMMERCIAL HAD USED WORD WITH A HAND SIGNAL THRUSTING TWO FINGERS OUT I WASN'T SURE WHAT IT MEANT MR VOLKWEIN CONCEDES BUT THE AD AGENCY ASSURED ME IT WAS HIP INDEED MS ZANDL HEAD OF THE NEW YORK RESEARCH FIRM RECOMMENDS THAT MARKETERS STEER CLEAR OF SLANG FOR ONE THING THE VERBIAGE MUTATES SO QUICKLY THAT ADVERTISERS CAN BARELY KEEP UP NO SOONER IS ONE PHRASE IN THAN TEEN ARBITERS DECIDE IT'S WELL SO FIVE MINUTES AGO KIDS REALLY LOOK AT IT AS THE MARKETERS TRYING TO BE COOL MS ZANDL SAYS IT CAN BE EMBARRASSING STILL SHE PUBLISHES A MONTHLY HOT SHEET LISTING THE LATEST SLANG EXPRESSIONS THOSE THAT TAKE THE RISK MUST FOLLOW SOME SACROSANCT RULES MOST IMPORTANT THE SLANG USED MUST ALWAYS COME FROM A YOUTH OR TEEN ACTOR NEVER HAVE AN ADULT SPOUT OFF IF IT EVER COMES OUT OF THE ANNOUNCER'S MOUTH THAT'S THE KISS OF DEATH SAYS MR ZOLLO AT TEENAGE RESEARCH UNLIMITED ONE EXCEPTION MAY BE BASKETBALL STARS PARTICULARLY THOSE OF THE 7FOOTPLUS VARIETY REEBOK'S NEW CAMPAIGN FEATURES THE ORLANDO MAGIC'S CENTER 21YEAROLD SHAQUILLE O'NEAL AND A PHRASE OF THE PLAYER'S OWN MAKING DON'T FAKE THE FUNK ON A NASTY DUNK WHICH MEANS TO BE YOURSELF EVEN WHEN IN THE SPOTLIGHT THE WORDS HAVE RAPIDLY BECOME A PART OF TEENSPEAK THE FINAL JUDGES THE TEENS THEMSELVES SEEM UNSURE WHAT THEY THINK OF MARKETERS WHO TRY TO USE THEIR SLANG SEE ADULTS DON'T EVEN NEED TO BE TRYING TO UNDERSTAND US YOU KNOW WHAT I'M SAYING PROCLAIMS LEON DAVIDSON 15 IN ATLANTA THEIR STUFF IS USUALLY PLAYED OUT ANYWAY BUT THEN MR DAVIDSON WHO IS CHECKING OUT VIDEO GAMES AT A SHOPPING MALL WITH TWO FRIENDS NODS AT THE HUGE POSTER ADVERTISING SEGA SOFTWARE NOW THEY'VE GOT IT GOING ON MR DAVIDSON SAYS SEGA'S THE ONE MR DAVIDSON AND HIS FRIEND KENNETH MCQUEEN 16 SAY THEY DON'T MIND SEGA'S USE OF SLANG BECAUSE THE COMPANY IS USUALLY UPTODATE IT'S WHEN YOU HAVE THE OLD RAGGEDY STUFF THAT IT GETS MESSED UP MR MCQUEEN SAYS LIKE THE COMMERCIALS THAT STILL USE NOT' THAT'S OLD MAN HE LOOKS AT MR DAVIDSON YEAH I'VE GOT ONE WORD FOR THAT HE SAYS AS THEY BOTH START LAUGHING TEEN NO 1 MY POSSE'S GOING BACK TO THE CRIB YOU WANT TO COME TEEN NO 2 GOT TO GO TO THE JO I'M AUDI 5000 HOW YA LIVIN HOW ARE YOU LIVIN LARGE RESPONSE TO THE FORMER I'M DOING WELL THANK YOU SWEAT THAT SUIT IS DOPE WOW WHAT A NICE OUTFIT LOOKING FOR SOME PHAT' PRETTY HIPS AND THIGHS SPECULATION THAT PERHAPS YOU HOPE TO ENSNARE A YOUNG MAIDEN THEY WON'T GIVE UP THE DIGITS RESIGNATION APPARENTLY THE MAIDENS AREN'T INTERESTED THEY ARE NOT RELEASING THEIR PHONE NUMBERS KICKED TO THE CURB RECOGNITION OF THE UNIQUE WAY YOUNG MAIDENS HAVE OF MAKING ONE FEEL UNWANTED REJECTION I SMELL YA UNDERSTANDING I KNOW WHAT YOU MEAN I TOO WOULD NOT LIKE TO BE KICKED TO THE CURB THE POSSE'S GOING BACK TO THE CRIB A STATEMENT THAT ONE IS LEAVING FOR HOME WITH ONE'S FRIENDS I'VE GOT TO GO TO THE JO I'VE GOT TO GO TO WORK I'M AUDI 5000 A VALEDICTION GOODBYE I'M LEAVING MACK AMONG OTHER THINGS A PIMP OR GUY INTERESTED SOLELY IN GETTING WHAT HE CAN FROM WOMEN 9303290164 930329 WHO'S NEWS HEINZ PICKS WAMHOFF TO HEAD OREIDA AS WHITE RESIGNS AFTER 10 MONTHS IN JOB BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH FOR THE FOURTH TIME IN 18 MONTHS HJ HEINZ CO HAS A NEW TOP EXECUTIVE AT THE HELM OF ITS SLOWGROWTH OREIDA FROZEN POTATO UNIT RICHARD WAMHOFF 47 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF HEINZ'S STARKIST SEAFOOD CO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF BOISE IDAHOBASED OREIDA HE SUCCEEDS ROBERT N WHITE 46 WHO RESIGNED UNEXPECTEDLY LAST WEEK AFTER A MERE 10 MONTHS IN THAT JOB MR WHITE WHO RELINQUISHED THE POST OF PRESIDENT IMMEDIATELY AND DEPARTS AS CHIEF EXECUTIVE APRIL 28 IS ENDING A 21YEAR CAREER AT HEINZ A PITTSBURGHBASED FOOD COMPANY MR WHITE SAID HE IS QUITTING TO DO SOMETHING DIFFERENT THOUGH HE HASN'T DETERMINED EXACTLY WHAT HE SAID HE REALIZES SOME MIGHT SPECULATE HE IS LEAVING UNDER DURESS PARTICULARLY BECAUSE UNTIL NOW HIS CAREER HAS FOLLOWED A STRAIGHT PATH ANYONE WHO KNOWS ME WOULD THINK IT'S OUT OF CHARACTER MAYBE THAT'S WHY IT'S THE RIGHT THING TO DO MR WHITE SAID STILL ANALYSTS AND FORMER HEINZ EXECUTIVES SAY MR WHITE WAS UNDER MOUNTING PRESSURE TO IMPROVE OREIDA'S PROFIT MARGINS AND INTRODUCE NEW PRODUCTS AS PART OF A COMPANYWIDE EFFORT TO SQUEEZE PROFITS OUT OF SLOWGROWING PRODUCTS MR WHITE REPORTED TO HEINZ SENIOR VICE PRESIDENT DAVID W SCULLEY TO PARE COSTS OREIDA HAS SLASHED 20 OF ITS SALARIED WORK FORCE THE PAST YEAR MORE DOWNSIZING IS EXPECTED AFTER TRAILING THE COMPETITION IN INTRODUCING POPULAR CURLY AND COATED FRIES OREIDA INTRODUCED A NUMBER OF NEW PRODUCTS IN THE PAST 18 MONTHS IT SPENT MORE THAN 10 MILLION DEVELOPING ITS HIGHLY TOUTED FAST FRIES SHOESTRING POTATOES PROMOTED AS TASTING LIKE FASTFOOD FRIES AND WILL SPEND AS MUCH AS 30 MILLION MARKETING THE PRODUCT THIS YEAR PEOPLE IN THE POTATO INDUSTRY AND ANALYSTS SAID FAST FRIES MAY NOT BE SELLING AS WELL AS HEINZ HAD HOPED IN PART BECAUSE THE NAME CONFUSES CONSUMERS WHO THINK THE PRODUCT CAN BE PREPARED QUICKLY WHEN IN FACT IT TAKES 20 MINUTES TO BAKE THE PROBLEM MIGHT BE THAT THEY HAD TOO LOFTY EXPECTATIONS FOR FAST FRIES MAYBE WHITE FELT THE HEAT OF NOT LIVING UP TO THOSE EXPECTATIONS SAID JOHN M MCMILLIN A PRUDENTIAL SECURITIES ANALYST A HEINZ SPOKESMAN SAID OREIDA HAD 13 CONSECUTIVE MONTHS OF IMPROVED MARKET SHARE AND NOTED THAT MR WHITE LAUNCHED FAST FRIES AND OTHER NEW PRODUCTS AND LAID THE FOUNDATION FOR FUTURE GROWTH OREIDA WITH 800 MILLION IN ANNUAL SALES HAS A COMMANDING 51 SHARE OF THE RETAIL FROZEN POTATO MARKET STILL PRIVATE LABEL MANUFACTURERS WITH A 30 SHARE REPRESENT A GROWING THREAT PEOPLE IN THE FROZEN POTATO INDUSTRY SAY OREIDA FELL SHORT OF INTERNAL PERFORMANCE TARGETS BY 20 MILLION THIS YEAR AND 12 MILLION LAST YEAR MR WHITE DECLINED TO COMMENT THERE HAS BEEN CONSIDERABLE UPHEAVAL IN OREIDA'S UPPER RANKS SINCE AUGUST 1990 WHEN GERALD HERRICK RETIRED AS OREIDA PRESIDENT AND CHIEF EXECUTIVE OFFICER HE WAS SUCCEEDED BY JOHN GLERUM WHO QUIT ABRUPTLY IN SEPTEMBER 1991 MR HERRICK RETURNED ON AN INTERIM BASIS LEAVING IN DECEMBER 1991 OREIDA WAS WITHOUT A TOP EXECUTIVE UNTIL MR WHITE WAS PROMOTED LAST MAY MEANWHILE OREIDA WAS ADJUSTING TO THE LOSS OF WEIGHT WATCHERS FOOD WHICH WAS BROKEN OUT INTO A SEPARATE UNIT IN 1991 THERE'S BEEN A LOT OF TURMOIL AND CHANGE SAYS MR HERRICK MR WAMHOFF A RISING STAR WHO RECENTLY WAS CHAIRMAN OF A COMPANYWIDE TASK FORCE ON PROCUREMENT PRACTICES LEAVES LONG BEACH CALIFBASED STARKIST AS IT IS BEING CONSOLIDATED WITH HEINZ'S KENTUCKYBASED PET FOOD UNIT HE HAS A STRONG OPERATING BACKGROUND AND THERE MIGHT BE SOME RATIONALIZATIONS THAT HAVE TO OCCUR AT OREIDA SAYS TIMOTHY S RAMEY AN ANALYST WITH CJ LAWRENCE MR WAMHOFF COULDN'T BE REACHED 9303290163 930329 AND DROP INVESTMENT TAX CREDITS BY MORTIMER M CAPLIN MANY DEMOCRATS ON THE HOUSE WAYS AND MEANS COMMITTEE HAVE COME OUT AGAINST PRESIDENT CLINTON'S TEMPORARY INVESTMENT TAX CREDIT BUT MR CLINTON SHOULD GO ONE STEP FURTHER HE SHOULD ELIMINATE BOTH OF HIS PLAN'S INVESTMENT TAX CREDITS THE TWOYEAR INCREMENTAL ITC FOR LARGE BUSINESSES AND THE PERMANENT ITC FOR SMALL BUSINESSES THE 30 BILLION IN TAX SAVINGS 199498 COULD BE USED TO REDUCE THE DEFICIT OR TO STRENGTHEN OTHER ASPECTS OF THE PRESIDENT'S PROGRAM A COLLABORATOR IN DEVELOPING THE ITC CONCEPT WHILE ON PRESIDENT KENNEDY'S TAXATION TASK FORCE I WAS LATER CALLED UPON AS COMMISSIONER OF INTERNAL REVENUE BOTH TO HELP DRAFT REGULATIONS FOR ITS IMPLEMENTATION AND TO POLICE ITS USE THE HOUSE WAYS AND MEANS COMMITTEE HAD REJECTED AN INCREMENTAL CREDIT AS TOO COMPLEX AND ERRATIC IN ITS APPLICATION AND THE ITC FINALLY EMERGED AS AN ACROSSTHEBOARD 7 TAX CREDIT FOR NEW AND TO A LIMITED EXTENT USED TANGIBLE PERSONAL PROPERTY ANY BUILDING AND ITS STRUCTURAL COMPONENTS WERE EXCLUDED BUT WHAT GAMES ACCOUNTANTS AND LAWYERS PLAYED IN TRYING TO GET AROUND THIS BAN MOVABLE PARTITIONS INSIDE THE BUILDINGS BECAME THE FAD MANY OTHER LINEDRAWING PROBLEMS AROSE AND INDEED A NEW INDUSTRY DEVELOPED FOR MAKING SPECIFIC ITC STUDIES SO THAT BUSINESSES COULD PROVIDE SUPPORT FOR POSITIONS THEY TOOK ON THEIR TAX RETURNS INTERNAL REVENUE SERVICE AGENTS UNIFORMLY DISPUTED THESE STUDIES AND COUNTLESS CASES ENDED UP IN IRS APPEALS OFFICES AND THE COURTS UNDER THEORETICAL MACROECONOMIC CRITERIA THE ITC CERTAINLY HAS ITS CHARM BUT IN A REALWORLD ANALYSIS THE ITC'S TAXREDUCTION ATTRIBUTES ARE A STRONG BREW FOR DISTORTING NORMAL DECISIONMAKING AND ENCOURAGING TAXMOTIVATED NONECONOMIC BEHAVIOR TAX AVOIDANCE AND ABUSE ARE AN INEVITABLE BYPRODUCT THE ONAGAIN OFFAGAIN HISTORY OF THE ITC PROVIDES LITTLE PROOF THAT BY ITSELF IT RESULTS IN SUBSTANTIAL INCREASES IN INVESTMENT ALTHOUGH THE TIMING OF EXPENDITURES MAY BE AFFECTED BY THE ITC MUCH OF THE PRIOR ITC WAS WASTED ON INVESTMENTS THAT WOULD HAVE BEEN MADE IN ANY EVENT SOME ECONOMISTS HAVE EVEN CONCLUDED THAT FOR EACH DOLLAR SPENT BY THE TREASURY ON ITCS CONSIDERABLY LESS THAN 1 INCREASED INVESTMENT WAS IN FACT PRODUCED BEYOND THIS THE PRINCIPLE OF TAX NEUTRALITY IS SHARPLY VIOLATED BY THE ITC'S BIAS TOWARD CAPITALINTENSIVE INDUSTRIES RESULTING IN DISCRIMINATION AGAINST SERVICE BUSINESSES DISTRIBUTORS WHOLESALERS RETAILERS AND BUSINESSES OBLIGED TO FINANCE LARGE INVENTORIES IF IT IS JOBS WE ARE AFTER WHY SUBSIDIZE CAPITAL IN A RECENT SURVEY OF THE ITC LITERATURE JANE GRAVELLE OF THE CONGRESSIONAL RESEARCH SERVICE LIBRARY OF CONGRESS INCLUDED THE FOLLOWING AMONG HER CONCLUSIONS OVERALL VERY HIGH MARKS ARE NOT GIVEN TO THE USE OF ITCS AS COUNTERCYCLICAL TAX DEVICES BECAUSE OF THE LONG LAGS IN RESPONDING TO THESE INCENTIVES LITTLE EVIDENCE EXISTS TO SUPPORT EXPECTATION OF A LARGE EFFECT ON CAPITAL FORMATION AND THE DEGREE OF CAPITAL FORMATION OBTAINED WILL HAVE A MODEST IMPACT ON FUTURE STANDARDS OF LIVING AND GROWTH RATES OVER THE NEXT FEW YEARS MS GRAVELLE FINDS LITTLE FAVORABLE TO SAY ABOUT THE ITC'S EFFICIENCY OR EFFECTIVENESS IN SPURRING NEEDED INVESTMENT INCREMENTAL ITCS HAVE THEIR OWN SEVERE DIFFICULTIES THEY ARE TARGETED AT INVESTMENT THAT WOULD NOT BE MADE ABSENT THE ITC STIMULUS IE INVESTMENT IN A TAX YEAR THAT IS IN EXCESS OF A TAXPAYER'S AVERAGE HISTORIC INVESTMENT MADE DURING A PRECEDING BASE PERIOD BUT WHAT IS A FAIR BASE PERIOD FOR A WIDE VARIETY OF BUSINESSES WITH DIFFERING HISTORIES WHAT ABOUT NEW OR FASTGROWING BUSINESSES BUSINESSES THAT RECENTLY MADE LARGE INVESTMENTS OR THOSE THAT RECENTLY MADE UNUSUALLY LOW INVESTMENTS HOW DO YOU TREAT MULTIPLE BUSINESSES CONTROLLED BY THE SAME TAXPAYER AND HOW DO YOU TREAT BUNCHING OF INVESTMENTS TO ACHIEVE INCREMENTAL ITCS IN THE PAST ITCS BECAME THE PRIME BAIT TO ATTRACT INVESTMENT IN NUMEROUS EXOTIC TAX SHELTERS THAT WERE WIDELY MARKETED RIGHT UP TO THE TAX REFORM ACT OF 1986 THE IRS WAS COMPELLED TO FOCUS MAJOR PORTIONS OF ITS RESOURCES ON TAXSHELTER EXAMINATIONS APPEALS AND FRAUD CASES THE WIDE PUBLICITY GIVEN TO TAXSHELTER FEVER INEVITABLY LED TO A WEAKENING OF VOLUNTARY COMPLIANCE WITH OUR TAX LAWS WITH AN ANNUAL TAX GAP OF CLOSE TO 115 BILLION RESULTING FROM THE FAULTY REPORTING OF INCOME FROM LEGAL ACTIVITIES THIS NATION CANNOT ACCEPT FURTHER REVENUE DETERIORATION BY OPENING THE DOOR TO A POTENTIAL NEW WAVE OF TAXSHELTER OFFERINGS NOTWITHSTANDING THE PASSIVE LOSS BARRIERS ERECTED BY THE 1986 TAX REFORM ACT THE PRESIDENT'S PROPOSALS CONTAIN ENOUGH ESSENTIAL INGREDIENTS TO WHET THE APPETITES OF HUNGRY TAXSHELTER PROMOTERS HIGHER TAX RATES COUPLED WITH A BROADENED AND TOUGHER TAX BASE CAPITALGAINS PREFERENCES WITH A 30 EXCLUSION FROM INCOME FOR TOPBRACKET TAXPAYERS AS WELL AS A 50 EXCLUSION FOR TARGETED CAPITAL GAINS FOR QUALIFIED SMALL BUSINESS STOCK REPEAL OF THE PASSIVE LOSS RULES FOR REALESTATE PROFESSIONALS THE INTRODUCTION OF NEW ITCS AND EVEN ENTERPRISE ZONE BENEFITS ALL AVAILABLE TO BE PACKAGED TOGETHER FOR HIGHBRACKET CUSTOMERS THE ITC IS AN ECONOMIST'S DREAM A TAX ADMINISTRATOR'S NIGHTMARE AND A SHELTER PROMOTER'S POT OF GOLD MR CAPLIN A LAWYER SERVED AS COMMISSIONER OF INTERNAL REVENUE UNDER PRESIDENTS KENNEDY AND JOHNSON SEE RELATED STORY PRICING HEALTH CARE EXPERIENCE TALKS SHUN PRICE CONTROLS WSJ MARCH 29 1993 9303290162 930329 DELHAIZE REPORTS RISE OF 46 IN 1992 PROFIT DUE TO ONETIME GAIN SPECIAL TO THE WALL STREET JOURNAL BRUSSELS BELGIAN FOOD RETAILER DELHAIZE LE LION SA SAID NET CONSOLIDATED PROFIT ROSE 46 IN 1992 MAINLY AS A RESULT OF ONETIME CAPITAL GAINS NET CONSOLIDATED PROFIT ROSE TO 638 BILLION BELGIAN FRANCS 1879 MILLION FROM 437 BILLION BELGIAN FRANCS NET PROFIT OUTSIDE OF EXTRAORDINARY ITEMS OR RECURRING PROFIT FELL 12 TO 386 BILLION FRANCS FROM 437 BILLION A SPOKESMAN SAID ONETIME GAINS CAME FROM THE SALE OF DELHAIZE'S STAKE IN PORTUGUESE RETAILER PINGO DOCE AND FROM THE SALE OF ITS OWN SHARES MEANWHILE THE COMPANY CONFIRMED SALES ROSE 54 TO 327 BILLION FRANCS IN 1992 SALES IN BELGIUM WERE 911 BILLION FRANCS UP 63 DESPITE A 15 INCREASE IN THE FOOD PRICE INDEX FOOD LION INC THE US UNIT OF DELHAIZE POSTED A 12 INCREASE IN SALES BUT PROFIT FELL 13 TO 178 MILLION AMID A SLUGGISH US ECONOMY AND NEWS REPORTS IN NOVEMBER ALLEGING UNSANITARY FOOD HANDLING PRACTICES AT FOOD LION STORES SALES AT DELHAIZE'S SUPER DISCOUNT MARKETS INC CHAIN EDGED LOWER TO 248 MILLION FROM 254 MILLION WHILE PROFIT CLIMBED TO 600000 FROM 400000 ANALYSTS SAID THE RESULTS WERE EVEN WITH OR LOWER THAN EXPECTATIONS CLAIRE KENT A RETAIL ANALYST AT MORGAN STANLEY SAID PROFIT WAS LOWER THAN SHE FORECAST MAINLY BECAUSE OF THE LOWER NET IN BELGIUM SHE SAID THAT SHE WOULD REVISE HER 1993 PROFIT FORECAST DOWNWARD TO TAKE ACCOUNT OF A LOWER BASE IN BELGIUM HOWEVER SHE DIDN'T SEE THE RESULTS HAVING A BIG IMPACT ON THE SHARE PRICE ALTHOUGH SHE SAID IT COULD DECLINE A BIT IN LINE WITH OTHER ANALYSTS KENT SAID THE MARKET WILL LIKELY WAIT FOR MARCH SALES FROM FOOD LION WHICH ACCOUNT FOR AROUND 75 OF GROUP SALES AND FIRST QUARTER FIGURES ON BELGIAN RETAIL MARKET SHARE BEFORE TAKING POSITIONS ON THE SHARE 9303290161 930329 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AMERICAN RESIDENTIAL HOLDING CORP 25 MILLION COMMON SHARES VIA SALOMON BROTHERS INC BOMBAY CO ONE MILLION COMMON SHARES VIA MONTGOMERY SECURITIES BROCK CONTROL SYSTEMS INC INITIAL 2150000 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC CONSORTIUM G DINA GROUP INC INITIAL 9435000 AMERICAN DEPOSITARY SHARES VIA BEAR STEARNS & CO COMVERSE TECHNOLOGY INC 33 MILLION COMMON SHARES VIA LEHMAN BROTHERS INC DAVIDSON & ASSOCIATES INC INITIAL TWO MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP ENVIROTEST SYSTEMS CORP 100 MILLION OF SENIOR SUBORDINATED NOTES VIA DONALDSON LUFKIN & JENRETTE ENVIROTEST SYSTEMS CORP INITIAL 34 MILLION CLASS A COMMON SHARES VIA GOLDMAN SACHS & CO FEDERAL REALTY INVESTMENT TRUST 25 MILLION COMMON SHARES VIA MERRILL LYNCH & CO GEON CO INITIAL 13 MILLION COMMON SHARES VIA GOLDMAN SACHS GYMBOREE CORP INITIAL 1925000 COMMON SHARES VIA GOLDMAN SACHS HALLIBURTON CO SECONDARY OFFERING OF EIGHT MILLION COMMON SHARES VIA FIRST BOSTON CORP HAVERTY FURNITURE COS 1250000 COMMON SHARES VIA ROBINSONHUMPHREY CO INCO HOMES CORP INITIAL 26 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES INTERACTIVE NETWORK INC 25 MILLION COMMON SHARES VIA PAINEWEBBER INC KAUFMAN & BROAD HOME CORP 175 MILLION OF SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH LEASING SOLUTIONS INC INITIAL 15 MILLION COMMON SHARES VIA NEEDHAM & CO LIBERTY TECHNOLOGIES INC INITIAL 18 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO ORCHARD SUPPLY HARDWARE STORES CORP INITIAL 38 MILLION COMMON SHARES VIA LEHMAN BROTHERS PARALLAN COMPUTER INC INITIAL TWO MILLION SHARES VIA MONTGOMERY SECURITIES PHYSICIAN CORP OF AMERICA INITIAL THREE MILLION COMMON SHARES VIA BEAR STEARNS REPSOL SA SECONDARY OFFERING OF 12 MILLION AMERICAN DEPOSITARY SHARES VIA GOLDMAN SACHS SANMINA HOLDINGS INC INITIAL 295 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES SHERRITT GORDON LTD 200 MILLION OF SENIOR NOTES VIA GOLDMAN SACHS UNITEL VIDEO INC 1250000 COMMON SHARE VIA LEGG MASON WOOD WALKER INC WCT COMMUNICATIONS INC 32 MILLION COMMON SHARES VIA OPPENHEIMER & CO XTRA CORP 650000 COMMON SHARES VIA GOLDMAN SACHS ILLINOIS 165 MILLION OF GENERAL OBLIGATION BONDS VIA COMPETITIVE BID LOS ANGELES 4038 MILLION OF SERIES 1993A WASTEWATER SYSTEM REVENUE REFUNDING BONDS VIA COMPETITIVE BID LOS ANGELES DEPARTMENT OF WATER & POWER 802 MILLION ISSUE OF 1993 WATERWORKS REVENUE REFUNDING BONDS VIA COMPETITIVE BID SUFFOLK COUNTY WATER AUTHORITY NY 1098 MILLION OF VARIOUS WATER SYSTEM REVENUE REFUNDING BONDS VIA COMPETITIVE BID CALIFORNIA 780 MILLION OF VARIOUSPURPOSE GENERAL OBLIGATION BONDS VIA COMPETITIVE BID FRANKLIN COUNTY OHIO 1248 MILLION OF SERIES 1993 REFUNDING LIMITEDTAX BONDS VIA AN AG EDWARDS & SONS INC GROUP MILWAUKEE WISCONSIN 81 MILLION OF GENERAL OBLIGATION REFUNDING BONDS VIA A BEAR STEARNS GROUP NEW YORK CITY 750 MILLION OF GENERAL OBLIGATION REFUNDING BONDS VIA A MERRILL LYNCH GROUP NEW YORK STATE ENERGY RESEARCH & DEVELOPMENT AUTHORITY 100 MILLION OF REVENUE BONDS VIA A GOLDMAN SACHS GROUP SUBJECT TO FEDERAL ALTERNATIVEMINIMUM TAX NORTHEAST MARYLAND WASTE DISPOSAL AUTHORITY 360 MILLION OF BONDS VIA A LEHMAN BROTHERS GROUP PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY 82 MILLION OF REVENUE BONDS VIA A SMITH BARNEY HARRIS UPHAM & CO INC GROUP VERMONT STUDENT ASSISTANCE CORP 80 MILLION OF REVENUE BONDS VIA A LEHMAN BROTHERS GROUP INSURED BY FINANCE SECURITY ASSURANCE 9303290160 930329 BUSINESS BRIEF BIC SA NET INCREASED 45 IN 1992 TO A TOTAL OF 67 MILLION BIC SA PARIS SAID NET INCOME ROSE 45 TO 374 MILLION FRANCS 67 MILLION IN 1992 FROM 358 MILLION FRANCS A YEAR EARLIER REVENUE ROSE 35 TO 59 BILLION FRANCS FROM 57 BILLION FRANCS A YEAR EARLIER 9303290159 930329 US HOPES ECONOMIC GROUP WILL HELP BOLSTER TRADE WITH EAST ASIAN NATIONS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS THROWING ITS WEIGHT BEHIND A LITTLEKNOWN USASIAN ECONOMIC ORGANIZATION AS A WAY TO BOLSTER TRADE WITH THE FASTGROWING ECONOMIES OF EAST ASIA THE 15MEMBER ORGANIZATION CALLED ASIA PACIFIC ECONOMIC COOPERATION IS BEGINNING A FOURDAY MEETING TODAY IN WILLIAMSBURG VA TO PLOT ITS DIRECTION THE GROUP'S AMBITIOUS GOALS INCLUDE TRADE AND INVESTMENT LIBERALIZATION AS WELL AS STRONGER PROTECTION FOR PATENTS AND COPYRIGHTS AMONG THE MEMBER STATES IT HAS ENORMOUS POTENTIAL SAID US TRADE REPRESENTATIVE MICKEY KANTOR THE FOURYEAROLD ORGANIZATION IS UNIQUE IN SEVERAL WAYS IT BRINGS THE US AND CANADA INTO A COLLABORATIVE EFFORT WITH THE FASTESTGROWING ECONOMIES IN ASIA INCLUDING CHINA HONG KONG TAIWAN SOUTH KOREA THAILAND INDONESIA SINGAPORE AND JAPAN THE OTHER MEMBERS ARE MALAYSIA THE PHILIPPINES BRUNEI AUSTRALIA AND NEW ZEALAND AND THE US WILL PLAY A STRONG ROLE IN SHAPING ITS DIRECTION THIS YEAR THE GROUP'S SECRETARIAT IS HEADED BY A US STATE DEPARTMENT VETERAN WILLIAM BODDE AND THE GROUP'S ADVISORY BOARD GRANDLY DUBBED THE EMINENT PERSONS GROUP IS HEADED BY A US TRADE VETERAN FRED BERGSTEN DIRECTOR OF THE INSTITUTE OF INTERNATIONAL ECONOMICS IN NOVEMBER THE FOREIGN MINISTERS OF THE APEC COUNTRIES WILL MEET IN SEATTLE TO VOTE ON ADOPTING AN ECONOMIC AGENDA WHICH COULD LEAD TO THE NEGOTIATION OF DETAILED TRADE AGREEMENTS MR BODDE SAID THAT APEC COULD SOMEDAY LEAD TO A FREETRADE AGREEMENT AMONG THE MEMBERS EVEN SHORT OF THAT THE GOAL IS TO PROMOTE TRADE AND LIBERALIZE TRADE HE SAID FOR INSTANCE APEC WHICH IS HEADQUARTERED IN SINGAPORE IS COMPILING A COMPUTERIZED LIBRARY OF TARIFFS QUOTAS AND OTHER TRADE BARRIERS IN EACH OF THE COUNTRIES THE USUALLY OBSCURE GROUP EVEN MR BODDE TRIPPED UP OVER WHAT THE ACRONYM APEC STANDS FOR HAS GARNERED SOME RECOGNITION FROM PRESIDENT CLINTON DURING A TRADE SPEECH AT AMERICAN UNIVERSITY LAST MONTH HE SAID THE ADMINISTRATION SHOULD WORK WITH APEC TO LIBERALIZE TRADE ACROSS THE PACIFIC THE ORGANIZATION'S ATTRACTIVENESS IS SEVERALFOLD ADMINISTRATION OFFICIALS EXPLAINED FIRST APEC GIVES THE US GREATER ACCESS TO EAST ASIAN COUNTRIES IN A WAY THAT SHOULDN'T UNNERVE JAPAN WHICH IS ALSO A MEMBER SECOND IT BRINGS BOTH OF CHINA AND TAIWAN INTO ONE ORGANIZATION THIRD APEC COULD GIVE JAPAN A FACESAVING WAY OF MAKING POLITICALLY DIFFICULT TRADE CONCESSIONS MR BODDE SAID JAPAN MAY BE MORE WILLING TO LIFT A BAN ON RICE IMPORTS LONG A US DEMAND IF JAPAN COULD DEPICT IT AS A GESTURE TO STRENGTHEN APEC THEY COULD SAY THEY DIDN'T BOW TO US PRESSURE MR BODDE SAID FURTHERMORE APEC DOESN'T INCLUDE THE EUROPEAN COMMUNITY WHICH ALSO WANTS MORE TRADE WITH ASIA THAT ARRANGEMENT COULD GIVE THE US BARGAINING LEVERAGE WITH THE EC IN NEGOTIATIONS OVER A WORLD TRADE PACT MR BERGSTEN HAS SUGGESTED THAT IF THE EC DOESN'T MAKE SUFFICIENT CONCESSIONS TO CONCLUDE THOSE TALKS WHICH ARE EXPECTED TO BE IN HIGH GEAR AROUND THE TIME OF THE APEC SEATTLE MEETING THE US SHOULD LAUNCH A PACIFIC FREE TRADE AREA APEC PROVIDES A FORUM FOR SUCH A MOVE EC TALKS RESUME TODAY IN BRUSSELS WHERE LITTLE CONCRETE PROGRESS IS EXPECTED ON THE WORLD TRADE PACT BUT THE TWO SIDES MAY MAKE SOME HEADWAY ON DEFUSING A DISPUTE OVER GOVERNMENT PROCUREMENT PRACTICES BUT SEVERAL OBSTACLES COULD BLOCK APEC'S DEVELOPMENT THE GROUP WORKS BY CONSENSUS AND MALAYSIA WHICH HAS BEEN PARTICULARLY SUSPICIOUS OF THE US COULD VETO ANY ENHANCED ROLE FOR WASHINGTON MOREOVER IF THE US WERE TO PLACE PROHIBITIVE TARIFFS ON CHINA IN RESPONSE TO HUMAN RIGHTS VIOLATIONS THERE OR IF A TRADE WAR BROKE OUT BETWEEN THE US AND JAPAN APEC WOULD PROBABLY BECOME ENFEEBLED SO FAR APEC WHICH WAS FOUNDED AT THE INSTIGATION OF AUSTRALIA HAS MOSTLY OCCUPIED ITSELF WITH RELEASING HORTATORY STATEMENTS PRAISING FREE TRADE BUT ACCORDING TO MR BODDE THIS IS THE YEAR TO MOVE TO CONCRETE PROPOSALS 9303290158 930329 AMEX DISCIPLINES ONE MEMBER FIRM FOUR INDIVIDUALS BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE AMERICAN STOCK EXCHANGE ANNOUNCED DISCIPLINARY ACTIONS AGAINST ONE MEMBER FIRM AND FOUR INDIVIDUALS FOR ALLEGED VIOLATIONS OF EXCHANGE RULES DOMINICK & DOMINICK INC NEW YORK WAS FINED 20000 FOR FAILING TO SUPERVISE A CUSTOMER'S ACCOUNT PROPERLY THE FIRM SETTLED WITHOUT ADMITTING OR DENYING THE CHARGES JOSEPH A CURRIER OF SAN FRANCISCO FORMERLY AN EMPLOYEE OF PRUDENTIAL SECURITIES INC WAS CENSURED AND FINED 25000 AMONG OTHER VIOLATIONS MR CURRIER WAS CHARGED WITH UNAUTHORIZED EQUITY AND OPTIONS TRANSACTIONS IN A CUSTOMER'S ACCOUNTS WHILE HE WAS WORKING OVERSEAS MR CURRIER WHO COULDN'T BE REACHED FOR COMMENT ALSO WAS CHARGED WITH RECOMMENDING UNSUITABLE OPTIONS TRANSACTIONS AND WITH IMPLEMENTING AN UNSUITABLE BOND PURCHASE FOR A CUSTOMER CHURNING A CUSTOMER'S ACCOUNTS AND SIGNING A CUSTOMER'S NAME TO PURCHASE A LIMITED PARTNERSHIP WITHOUT HER AGREEMENT WHILE SHE WAS OVERSEAS HE SETTLED WITHOUT ADMITTING OR DENYING THE ALLEGATIONS MARTIN TAMAROFF NORTH MIAMI FLA WAS CENSURED AND FINED 1000 FOR FAILING TO USE DUE DILIGENCE IN CONNECTION WITH THE PURCHASE OF 850 OPTIONS FOR A CUSTOMER MR TAMAROFF FORMERLY WITH SHEARSON LEHMAN BROTHERS INC ALSO WAS CHARGED WITH IMPLEMENTING LARGE OPTIONS ORDERS IN THE CUSTOMER'S ACCOUNTS WITHOUT GETTING PRIOR APPROVAL FROM HIS BRANCH MANAGER AND WITHOUT HAVING SUFFICIENTLY CLEARED FUNDS IN THE CUSTOMER'S ACCOUNTS HE SETTLED WITHOUT ADMITTING OR DENYING THE CHARGES AND DECLINED TO COMMENT ROBERT D ROSS HOLLYWOOD FLA WAS CENSURED AND FINED 5000 FOR INITIATING AT THE OPENING OF THE MARKET TRANSACTIONS FROM OFF THE FLOOR OF THE EXCHANGE FOR HIS MARKETMAKER ACCOUNT MR ROSS WHO COULDN'T BE REACHED FOR COMMENT SETTLED WITHOUT ADMITTING OR DENYING THE ALLEGATIONS STEVEN R SALA NEWPORT BEACH CALIF WAS CENSURED AND BARRED FOR ONE YEAR FOR MISMARKING CUSTOMERS' ORDER TICKETS TO CIRCUMVENT MARGIN REQUIREMENTS AND FOR EXERCISING DISCRETIONARY AUTHORITY IN TWO CUSTOMERS' ACCOUNTS WITHOUT THEIR PRIOR KNOWLEDGE AND WRITTEN PERMISSION MR SALA WHO COULDN'T BE REACHED FOR COMMENT SETTLED WITHOUT ADMITTING OR DENYING THE CHARGES 9303290157 930329 BUSINESS BRIEF DIBRELL BROS AND STANDARD COMMERCIAL LEAFTOBACCO PROCESSORS AGREE TO MERGE DANVILLE VA DIBRELL BROTHERS INC AND STANDARD COMMERCIAL CORP BOTH LEAFTOBACCO PROCESSORS SAID THEY PLAN TO MERGE PENDING SHAREHOLDER AND GOVERNMENT APPROVALS THE COMPANIES SAID THEIR BOARDS APPROVED AN AGREEMENT IN PRINCIPLE FOR THE MERGER IN WHICH DIBRELL SHAREHOLDERS WOULD CONTROL 60 OF THE NEW COMPANY AND STANDARD COMMERCIAL SHAREHOLDERS THE REMAINING 40 THE TRANSACTION IS EXPECTED TO BE TAXFREE THE COMPANIES SAID AND COMPLETED IN THREE TO FOUR MONTHS THEY DIDN'T INDICATE WHETHER IT WOULD BE IN THE FORM OF A STOCK SWAP STANDARD COMMERCIAL IS BASED IN WILSON NC DIBRELL AND STANDARD COMMERCIAL PURCHASE PROCESS AND SELL LEAF TOBACCO WORLDWIDE DIBRELL ALSO IMPORTS AND DISTRIBUTES CUT FLOWERS AND STANDARD COMMERCIAL HAS A WOOL PROCESSING BUSINESS COMBINED THE COMPANIES HAD ABOUT 15 BILLION IN TOBACCO REVENUE AND 720 MILLION IN NONTOBACCO REVENUE IN 1992 COMBINED NET INCOME FOR 1992 WOULD HAVE BEEN ABOUT 588 MILLION BUT THE COMPANIES SAID COST SAVINGS AND OPERATING SYNERGIES COULD IMPROVE COMBINED NET DESPITE INDUSTRYWIDE FEAR STEMMING FROM THE CLINTON ADMINISTRATION'S FLIRTATION WITH EXTENSIVE SIN TAXES ON TOBACCO SOME ANALYSTS HAVE RECENTLY TOUTED DIBRELL BECAUSE IT IMPORTS A GREAT DEAL OF INEXPENSIVE TOBACCO IT IS INDIRECTLY BENEFITING FROM THE SUCCESS OF LOWPRICED GENERIC CIGARETTES AND ONE ANALYST SEES DIBRELL BENEFITING EVEN MORE IF HEAVY TAXES DRIVE CIGARETTE PACK PRICES HIGHER CLAUDE B OWEN JR DIBRELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL SERVE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMBINED ENTITY J ALEC G MURRAY VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF STANDARD COMMERCIAL WILL BE THE MERGED COMPANY'S EXECUTIVE VICE PRESIDENT ERY W KEHAYA STANDARD COMMERCIAL CHAIRMAN AND RETIRED CHIEF EXECUTIVE OFFICER WILL SERVE AS NONEXECUTIVE CHAIRMAN A DIBRELL SPOKESMAN SAID THE NEW COMPANY MIGHT RETAIN THE DIBRELL NAME BUT A DECISION HASN'T BEEN REACHED THE PLAN WAS ANNOUNCED FRIDAY AFTER THE CLOSE OF TRADING DIBRELL SHARES FELL 50 CENTS TO 3325 IN NATIONAL OVERTHECOUNTER TRADING WHILE STANDARD COMMERCIAL SHARES FELL 25 CENTS TO 1950 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9303290156 930329 SUN HUNG KAI PROPERTIES HONG KONG SUN HUNG KAI PROPERTIES LTD SAID ITS NET PROFIT IN THE SIX MONTHS ENDED DEC 31 SHOT UP 21 TO 324 BILLION HONG KONG DOLLARS US419 MILLION DESPITE A DROP IN PROPERTY SALES BY THE GROUP OF 24 YEARONYEAR 9303290155 930329 PRICING HEALTH CARE EXPERIENCE TALKS SHUN PRICE CONTROLS BY C JACKSON GRAYSON JR IT NOW SEEMS LIKELY THAT SOME FORM OF PRICE CONTROLS WILL EMERGE FROM THE PRESIDENT'S TASK FORCE ON NATIONAL HEALTH CARE REFORM IT WILL BE A MISTAKE WHETHER THE PROPOSED HEALTH CONTROLS ARE GLOBAL BUDGETS PERCAPITA STATE BUDGETS FREEZES CAPS ON PHYSICIANS' OR HOSPITAL FEES WHETHER THEY'RE INTERIM VOLUNTARY OR MANDATORY THEY WON'T FIX THE UNDERLYING HEALTH CARE PROBLEMS OF QUALITY COST AND ACCESS PRICE CONTROLS WILL MAKE THINGS WORSE BELIEVE ME I'VE BEEN THERE IN 197173 I WAS CHAIRMAN OF THE PRICE COMMISSION FOR PHASE II OF THE WAGEPRICE CONTROLS WE HAD PRICE CONTROLS ON HOSPITALS INSURERS NURSES DRUG COMPANIES PHYSICIANS EVERYBODY CONTROLS HAVE NOT WORKED IN 40 CENTURIES THEY WILL NOT WORK NOW HERE IS WHY FINALLY INTERIM CONTROLS ENCOURAGE ENDGAMES BUSINESS AND LABOR SPENT AS MUCH TIME TRYING TO OUTSMART AND OUTGUESS US ON WHEN PHASE II CONTROLS MIGHT END AS THEY DID ON MAKING THE CONTROLS WORK LAS VEGAS EVEN STARTED RUNNING ODDS ON DECONTROL DATES THE SAME WILL HAPPEN AGAIN DISTORTIONS HAVE ALREADY OCCURRED WITH MEDICARE'S 1984 FIXED DIAGNOSISRELATED GROUP DRG REIMBURSEMENT FEE SINCE THE REIMBURSEMENT IS OFTEN BELOW ACTUAL COSTS SOME DOCTORS NOW REFUSE TO SEE MEDICARE PATIENTS HOSPITALS COMPENSATE BY EXPANDING UNCONTROLLED OUTPATIENT PSYCHIATRIC AND REHABILITATION SERVICES AND COST SHIFT ABOUT 38 TO OTHER PAYERS ADD MORE CONTROLS AND YOU WILL SEE NEW SERVICES APPEAR IN HOSPITALS AND DOCTORS' OFFICES THAT LOOK A LOT LIKE CONTROLLED OLD SERVICES EXPECT UNBUNDLING OF SERVICES WITH THE PRICE OF INDIVIDUAL UNITS WHEN ADDED TOGETHER TOTALING MORE THAN THE ORIGINAL BUNDLED SERVICE A 1992 GENERAL ACCOUNTING OFFICE STUDY OF HEALTH CARE IN GERMANY FRANCE AND JAPAN CONCLUDED THAT CONCERNS EXIST ABOUT THE SIDE EFFECTS OF THE CONTROLS AND ESPECIALLY IN THE LONG RUN ON THE QUALITY OF CARE CONTROLS NOT ONLY FAIL TO TACKLE THE ROOT CAUSES OF RISING COSTS THEY USUALLY BLOCK INNOVATIONS THAT WOULD REDUCE INEFFICIENCIES PRICE CONTROLS COST MONEY TO ADMINISTER PARTICULARLY IF MANDATORY THE REGULATORY APPARATUS REQUIRES ADDED PERSONNEL AT THE FEDERAL STATE AND LOCAL LEVELS IN PHASE II WE CREATED LOTS OF BUSINESS FOR LAWYERS ACCOUNTANTS AND CONSULTANTS BUT THE LARGEST CONTROLGENERATED COST INCREASES WILL COME FROM COSTS INCURRED BY ORGANIZATIONS COMPLYING WITH THE CONTROLS ALREADY 24 OF US HEALTH CARE IS SPENT ON ADMINISTRATIVE COSTS OVERHEAD AND BILLING EXPENSES NOW ADD NEW PRICE CONTROL FORMS THE ADDITIONAL PEOPLE THE DIVERSION OF TIME FROM PRODUCTIVE WORK THE HASSLE FACTOR EXPECT COSTS TO INCREASE THE GAO STUDY REPORTED THAT VOLUNTARY TARGETS DID NOT SLOW COST GROWTH AFTER GERMANY'S VOLUNTARY TARGETS FOR PHYSICIANS' FEES WERE CONSISTENTLY IGNORED IT ADOPTED MANDATORY CAPS THE ECONOMIST WALTER HELLER USED TO QUOTE AL CAPONE A KIND WORD WILL GO A LONG WAY BUT A KIND WORD AND A GUN WILL GO EVEN FURTHER AS VOLUNTARY BECOMES MANDATORY ENFORCEMENT BECOMES AN EXPENSIVE PROBLEM ASSUME PHYSICIANS' FEES ARE LIMITED TO A 2 1/2 INCREASE HOW WILL THE CONSUMER KNOW WHAT IS THE LEGAL PRICE FOR THE DOCTOR TO CHARGE WILL THE DOCTOR BE REQUIRED TO POST PRICES WHERE IS THE POSTER TO BE DISPLAYED WHO AUDITS THE PRICE AS ENFORCEMENT MOUNTS SO DOES EVASION THE PEOPLE ON THE TASK FORCE ARE NO MATCH FOR PEOPLE WHOSE LIVELIHOODS DEPEND ON FINDING WAYS AROUND CONTROLS TRAGICALLY THIS INGENUITY IS WASTED ON BEATING CONTROLS NOT MAKING IMPROVEMENTS WHAT WILL YOU DO WITH THE VIOLATORS IF YOU CATCH THEM FINE THEM SEND THEM TO JAIL STATES WATCH OUT THE FEDS LIKE TO LOAD ADMINISTRATIVE AND ENFORCEMENT COSTS ON YOU ALSO BE PREPARED FOR SOME NASTY SCENES IN PARIS THERE HAVE BEEN PHYSICIAN STRIKES AND STREET PROTESTS OVER CONTROLS IN PHASE II PROTESTERS THREW FLOUR ON ME AND CHICKEN FARMERS IN TEXAS GASSED THOUSANDS OF LITTLE YELLOW CHICKS TO DEATH IN FRONT OF A PRIMETIME NATIONAL TV AUDIENCE TO PROTEST GRAYSON'S CONTROLS CAUSING EXCESSIVELY HIGH FEED COSTS SO WHAT DO I RECOMMEND FIRST FORGET CONTROLS FOCUS INSTEAD ON A FUNDAMENTAL RESTRUCTURING OF THE ENTIRE HEALTH CARE SYSTEM JUST AS AMERICAN BUSINESS IS RESTRUCTURING USING TWO PRIMARY TOOLS TO MAKE THE CHANGES TOTAL QUALITY MANAGEMENT TQM AND BENCHMARKING TQM IS A CUSTOMERFOCUSED IMPROVEMENT PROCESS BASED ON PREVENTION AND QUALITY BENCHMARKING HELPS ORGANIZATIONS IDENTIFY AND ADAPT BEST PRACTICES USED BY OTHERS TOGETHER THESE TWO PARADIGMBUSTING APPROACHES ARE REVOLUTIONIZING AMERICAN BUSINESS THEY ARE ALREADY BEGINNING TO DO THE SAME IN HEALTH CARE AT THE AMERICAN PRODUCTIVITY & QUALITY CENTER WE ARE IMPLEMENTING TQM IN 173 VETERANS ADMINISTRATION HOSPITALS AND MANY PRIVATE HOSPITALS BENCHMARKING IS SPREADING RAPIDLY THROUGH THE INTERNATIONAL BENCHMARKING CLEARINGHOUSE AND OTHERS A BOSTONBASED FIRM MEDIQUAL WHICH PROVIDES COMPARATIVE DATA FOR BENCHMARKING ESTIMATES THAT 100 BILLION WILL BE SAVED IF ALL HOSPITALS MOVE PERFORMANCE TO THE BEST PRACTICE LEVELS THERE IS SUCH MONUMENTAL WASTE IN THE SYSTEM NOW THAT THESE IMPROVEMENTS WILL YIELD BILLIONS THREE STATES PENNSYLVANIA IOWA AND COLORADO ARE REQUIRING CLINICAL OUTCOMES MEASURES RIGHT NOW AN ARGUMENT IS THAT THIS ALL WILL TAKE WAY TOO LONG NOT SO THERE IS NOTHING FASTER THAN THE MARKET WHEN THE INCENTIVES ARE SET RIGHT IT WORKS WITH BLINDING SPEED PROVIDED THAT CONTROLS DO NOT JAM THE CHANGE AND INCENTIVE SIGNALS IT WAS GOV CLINTON WHO SAID MANAGED COMPETITION WILL MAKE IT WORK NOT PRICE CONTROLS IT WAS GOV CLINTON WHO WAS TUTORED IN TQM IN ARKANSAS BY EASTMAN CHEMICAL AND BECAME A BELIEVER IT WAS GOV CLINTON WHO SAID THE PRIVATE SECTOR IS THE ENGINE OF THE ECONOMY PRESIDENT CLINTON LISTEN TO GOV CLINTON MR GRAYSON IS CHAIRMAN OF THE AMERICAN PRODUCTIVITY & QUALITY CENTER IN HOUSTON AND WAS CHAIRMAN OF THE PRICE COMMISSION DURING THE 197173 WAGEPRICE CONTROLS SEE RELATED STORY AND DROP INVESTMENT TAX CREDITS WSJ MARCH 29 1993 9303290154 930329 BRAZIL POSTPONES SALE OF FERTILIZER COMPANY VALUED AT 204 MILLION SPECIAL TO THE WALL STREET JOURNAL RIO DE JANEIRO THE GOVERNMENT OF BRAZIL ANNOUNCED THE POSTPONEMENT OF THE SALE OF THE ULTRAFERTIL FERTILIZER COMPANY SCHEDULED FOR APRIL 12 THE AUCTION INSTEAD WILL BE HELD IN LATE APRIL OR EARLY MAY ANDRE MONTORO FILHO HEAD OF THE NATIONAL PRIVATIZATION PROGRAM SAID FRIDAY HE SAID THE ASSESSMENT OF THE COMPANY'S VALUE WAS COMPLETED LATE IT WAS VALUED AT 204 MILLION MR MONTORO FILHO ALSO SAID HE WOULD ASK BRAZILIAN PRESIDENT ITAMAR FRANCO TO REVOKE AN ORDER BANNING PENSION FUNDS FROM BIDDING IN THE AUCTIONS SEVERAL STATE COMPANIES WERE ACQUIRED BY THEIR OWN EMPLOYEES' PENSION FUNDS THAT COULD FACILITATE THE AUCTIONS AND MAKE THEM MORE COMPETITIVE MR MONTRORO FILHO SAID SINCE THE PRIVATIZATION PROGRAM BEGAN IN 1990 THE GOVERNMENT HAS SOLD 19 COMPANIES FOR A TOTAL OF 39 BILLION 9303290153 930329 LEISURE & ARTS WHO'LL WIN OSCARS ONLY THEY KNOW BY JOANNE KAUFMAN LOS ANGELES THEY HAVE SUPER BOWL POOLS AT PRICE WATERHOUSE THEY HAVE NCAA AND WORLD SERIES POOLS BUT THE VENERABLE ACCOUNTING FIRM SCRUPULOUSLY DRAWS THE LINE AT POOLS TO PREDICT THE OUTCOME OF THE ACADEMY AWARDS WE WOULDN'T THINK IT WAS KOSHER EXPLAINS AN EMPLOYEE WE DON'T MAKE LIGHT OF ANYTHING HAVING TO DO WITH THE OSCARS AND IF THERE WERE A POOL WE CERTAINLY WOULDN'T LET DAN LYLE AND FRANK JOHNSON IN IT SAYS KEN DOCTER THE FIRM'S VICE CHAIRMAN SMALL WONDER MESSRS JOHNSON AND LYLE ARE THE PRICE PARTNERS ANNUALLY CHARGED WITH OVERSEEING THE TALLY OF THE OSCAR BALLOTS SINCE FRIDAY THEY AND THEY ALONE HAVE KNOWN WHAT THE REST OF THE WORLD CAN ONLY SPECULATE AND ARGUE ABOUT UNTIL TONIGHT'S CEREMONY THE WINNERS IN EVERY CATEGORY FROM SOUND EDITING TO BEST PICTURE IT'S HARD TO ANTICIPATE THE ACADEMY CONCEDES MR JOHNSON 56 WHO IN HIS 17 YEARS OF VOTE COUNTING HAS LEARNED THE FUTILITY OF SECONDGUESSING I HEAR PEOPLE SPECULATE ON DIFFERENT REASONS SOMEONE WILL DEFINITELY WIN BUT IT USUALLY DOESN'T HAPPEN THAT WAY THE UNPREDICTABILITY IS PART OF THE FUN BUT NOT NEARLY AS MUCH FUN AS WALKING AROUND TOWN WITH AN I KNOW SOMETHING YOU DON'T KNOW SMIRK WHILE YOU HOLD THAT INFORMATION YOU FEEL YOU HAVE SOMETHING SIGNIFICANT SAYS MR LYLE 47 WHO'S BEEN INVOLVED WITH THE OSCARS FOR THE PAST EIGHT YEARS DURING THEIR TENURE THE TWO ACCOUNTANTS HAVE WITHSTOOD VIGOROUS QUESTIONING THERE ARE ALWAYS PEOPLE TRYING TO FIND OUT WHO THE WINNERS ARE AHEAD OF TIME NOTES MR DOCTER IF I ASKED THEY WOULDN'T TELL ME AND I'M THEIR BOSS MESSRS LYLE AND JOHNSON HAVE EVEN RESISTED GENEROUS CASH OFFERS WHEN CHEVY CHASE WAS THE SHOW'S EMCEE HE OFFERED A 1000 REWARD FOR INFORMATION LEADING TO THE NAME OF ANY WINNER IN ANY CATEGORY FOR USE IN HIS OPENING MONOLOGUE I HAD NEVER SEEN ANYONE PULL A THOUSANDDOLLAR BILL OUT OF HIS WALLET BEFORE SAYS MR LYLE BUT I REMAINED STEADFAST THE SILENT TREATMENT EXTENDS TO WIVES MYRA LYLE LEARNED LONG AGO NOT TO EXPECT BULLETINS ANNE JOHNSON CONTINUES TO ASK BUT SHE KNOWS I WON'T TELL SAYS HER AMIABLE IF CLOSEMOUTHED HUSBAND IF THEY SAY THEY DON'T TELL THEIR WIVES I BELIEVE THEM SAYS BRUCE DAVIS EXECUTIVE DIRECTOR OF THE ACADEMY OF MOTION PICTURE ARTS AND SCIENCES THEY'RE VERY TRUSTWORTHY FELLOWS THEY'D BETTER BE WHILE THE ACADEMY HARDLY QUALIFIES AS PRICE WATERHOUSE'S MOST LUCRATIVE ACCOUNT IT IS CERTAINLY THE FIRM'S HIGHESTPROFILE PIECE OF BUSINESS PW HAS HAD THE ACADEMY AS A CLIENT SINCE THE GROUP WAS FOUNDED IN 1927 INITIALLY THE FIRM HAD NO INVOLVEMENT WITH BALLOT TABULATION BUT AS TIME PASSED THERE WAS GROWING CONCERN ABOUT THE FAIRNESS OF THE COUNT TO REMOVE THE PROBLEM THEY ASKED US TO DO IT SAYS MR JOHNSON WHO LIKE MR LYLE MAKES IT A POINT TO SEE AT LEAST THE FIVE BESTMOVIE NOMINEES BUT DON'T BOTHER ASKING FOR A CRITIQUE I CERTAINLY HAVE MY FAVORITES SAYS MR JOHNSON BUT I THINK IT'S BETTER NOT TO REVEAL THEM SO THOSE WHO AREN'T MY FAVORITES WILL HAVE NO REASON TO BE CONCERNED ABOUT THE VALIDITY OF THE COUNT TUESDAY AT 5 PM WAS THE DEADLINE FOR RECEIPT OF THE 4800 BALLOTS AFTER SPENDING THE NIGHT IN THE FIRM'S SAFE THE BALLOTS WERE REMANDED TO A CONFERENCE ROOM ACCESSIBLE ONLY THROUGH THREE LOCKED DOORS AS A FURTHER PRECAUTION THE DOORS WERE TAPED EACH NIGHT UNTIL TALLYING WAS COMPLETE AFTER THE BALLOTS WERE SCISSORED INTO MANAGEABLE UNITS SIX PRICE EMPLOYEES BEGAN TO ASSIST WITH THE THREEDAY CATEGORYBYCATEGORY TABULATION BECAUSE THE EMPLOYEES WERE EACH GIVEN ONLY A CLUMP OF BALLOTS AND WERE FORBIDDEN TO COMPARE NOTES THEY COULD MAKE NO BOOK ON OUTCOME WE ALWAYS DO AT LEAST TWO COUNTS SAYS MR JOHNSON IF THINGS ARE VERY CLOSE IN A CATEGORY DAN AND I WILL INSPECT EACH AND EVERY BALLOT TO MAKE SURE THERE HASN'T BEEN A MISCOUNT MEANWHILE A SECRETARY TYPED UP CARDS WITH THE NAMES OF THE NOMINEES IN EVERY CATEGORY LEAVING IT TO MESSRS JOHNSON AND LYLE TO STUFF THE ENVELOPES WITH THE WINNING ENTRIES THERE WAS NO POINT IN NOSY COLLEAGUES CHECKING THE WASTEBASKETS FOR CLUES THE CARDS OF THE ALSORANS THOSE PRICE WATERHOUSE GUYS THINK OF EVERYTHING WERE LOCKED IN THE SAFE WHILE THIS BEHINDTHESCENES ROLE IS CRUCIAL THE PART THE FIRM PLAYS AT THE ACADEMY AWARDS CEREMONY HAS GREATLY DIMINISHED THROUGH THE YEARS UNTIL THE MID'70S THE FATEFUL WORDS THE ENVELOPE PLEASE WERE A CUE FOR ONE OF THE TWO CPAS ON THE SCENE TO WALK ONTO THE STAGE AND HAND OFF THE APPROPRIATE SEALED PACKET BUT SOMEONE CLOCKED IT AND FIGURED WE WERE WASTING 20 MINUTES BY THAT PROCEDURE SAYS MR DAVIS SO NOW THE PRESENTERS BRING THE ENVELOPES OUT WITH THEM CONSEQUENTLY THE PW TEAM MUST CONTENT ITSELF WITH A BRIEF WALKON INTRODUCTION AT THE START OF THE SHOW OR MERELY INCLUSION IN THE OPENING MONTAGE WITH ITS CAST OF GLITTERING THOUSANDS THIS YEAR AS USUAL MESSRS JOHNSON AND LYLE WILL DRIVE OR TAKE A CAB TO THE DOROTHY CHANDLER PAVILION SITE OF THE CEREMONY NO LIMOUSINE NO BRINKS TRUCK SAYS MR JOHNSON EVEN WITHOUT BODYGUARDS HE AND MR LYLE ARE EASY TO SPOT AS THEY WALK UP THE RED CARPET THEY'RE THE GUYS WITH BRIEFCASES IT ISN'T LOCKED MR JOHNSON CONFIDES AT MOST IT'S ZIPPERED THE BRIEFCASES AREN'T THE CPAS' ONLY BURDEN BACKSTAGE MR JOHNSON ON ONE SIDE OF THE WINGS MR LYLE ON THE OTHER THE TWO FRET IN TANDEM ABOUT THE POSSIBILITY OF A CHANGE IN THE ORDER OF AWARD DISTRIBUTION SINCE SUNDAY'S REHEARSAL THEY EACH HOLD A FULL COMPLEMENT OF ENVELOPES TO COVER SUCH AN EXIGENCY THEY ALSO WORRY THAT A PRESENTER WILL READ A NAME NOT ON THE PREPARED CARD JUST IN CASE THEY MEMORIZE THE RESULTS IN EVERY CATEGORY AND THEY CHAFE ABOUT SIFTING THROUGH THE DARK BACKSTAGE FOR THE NEXT PRESENTER SOMETIMES THEY MAKE IT TO US JUST BEFORE THEY HAVE TO RUN ONSTAGE SAYS MR JOHNSON THAT DOESN'T DAMP THE OSCARARDOR OF THE PRICE ACCOUNTANTS THEY ARE AS LIKELY TO GIVE UP THEIR YEARLY TASK AS A WINNING ACTOR IS TO FORGET HIS OSCAR AT THE END OF THE SHOW THE NIGHT OF THE SHOW IS ONE OF THE SIGNIFICANT NEWS EVENTS IN THE WORLD AND OUR BRINGING THE RESULTS IS THE KEY INGREDIENT SAYS MR JOHNSON I THINK I HAVE THE BEST JOB OF ANY CPA MS KAUFMAN IS A FREELANCE WRITER IN NEW YORK 9303290152 930329 ROCHESTER TELEPHONE UNIT ROCHESTER NY ROCHESTER TELEPHONE CORP'S RCI LONG DISTANCE UNIT SAID IT AGREED TO ACQUIRE BUDGET CALL LONG DISTANCE INC WHICH SERVES PARTS OF PENNSYLVANIA TERMS WEREN'T DISCLOSED BUDGET CALL GENERATES ABOUT 2 MILLION IN REVENUE A MONTH ROCHESTER TELEPHONE HAD 804 MILLION IN REVENUE IN 1992 9303290151 930329 JAPAN DEPARTING FROM PAST POLICY MOVES TO HELP RUSSIA AND MOZAMBIQUE BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SLOWLY JAPAN CONTINUES TO POKE THROUGH THE COZY COCOON OF ISOLATIONISM THAT HAS SURROUNDED IT FOR THE PAST HALFCENTURY IN SEPARATE ANNOUNCEMENTS FRIDAY JAPAN'S GOVERNMENT UNVEILED MOVES AIMED AT EASING TURMOIL IN RUSSIA AND IN MOZAMBIQUE ACTS THAT WOULD HAVE BEEN INCONCEIVABLE JUST TWO YEARS AGO FOR A COUNTRY WIDELY PRAISED AS AN ECONOMIC SUPERPOWER BUT DERIDED AS A DIPLOMATIC MIDGET SETTING ASIDE FOR NOW AT LEAST A TERRITORIAL FEUD WITH RUSSIA THE JAPANESE GOVERNMENT INVITED PRESIDENT BORIS YELTSIN TO VISIT TOKYO IN JULY FOR THE ANNUAL SUMMIT OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS IN ADDITION JAPAN SAID IT WILL HOST AN EMERGENCY MEETING OF G7 FINANCE AND FOREIGN MINISTERS ON APRIL 14 AND 15 TO DISCUSS RUSSIAN AID THE GOVERNMENT ALSO ANNOUNCED PLANS TO DISPATCH SOLDIERS TO UNITED NATIONS PEACEKEEPING OPERATIONS IN MOZAMBIQUE THE MOVE COMES LESS THAN A YEAR AFTER PARLIAMENT SHATTERED A POSTWAR TABOO BY PASSING A CONTROVERSIAL LAW ALLOWING JAPANESE SELF DEFENSE FORCES TO GO OVERSEAS JAPAN CURRENTLY HAS PEACEKEEPERS IN CAMBODIA BUT GOVERNMENT OFFICIALS STRESSED THE SYMBOLIC SIGNIFICANCE OF STEPPING BEYOND JAPAN'S HOME REGION TO ADDRESS PROBLEMS IN DISTANT AFRICA EXPECTATIONS FOR OUR INTERNATIONAL CONTRIBUTIONS ARE HIGH CHIEF CABINET SECRETARY YOHEI KONO SAID IN ANNOUNCING THE MOZAMBIQUE INITIATIVE THE STEPS ARE PART OF JAPAN'S CONTINUING ATTEMPTS TO MOVE BEYOND ITS ONENOTE FOREIGN POLICY OF THE PAST HALFCENTURY AS AMERICA'S ALLY IN THE WAR AGAINST COMMUNISM IT IS ALSO AN ATTEMPT TO EASE CONCERN THAT JAPAN HAS BENEFITED GREATLY FROM INTERNATIONAL PEACE AND STABILITY BUT HAS DONE LITTLE TO HELP MAINTAIN IT AS THE ONLY MAJOR INDUSTRIALIZED NATION WITH BOTH A TRADE SURPLUS AND A GENERAL GOVERNMENT SURPLUS JAPAN NOW HAS THE LARGEST POOL OF MONEY TO TREAT WORLD PROBLEMS JAPAN'S ULTIMATE GOAL IS TO JOIN THE OTHER WORLD POWERS AS A PERMANENT MEMBER OF THE UN SECURITY COUNCIL STILL THE TWO ANNOUNCEMENTS HIGHLIGHT HOW MUCH FURTHER JAPAN HAS TO GO THE GOVERNMENT TOOK SEVERAL MONTHS TO DECIDE TO SEND TROOPS TO MOZAMBIQUE EVEN SO FOR NOW ONLY 50 JAPANESE SOLDIERS WILL BE SENT AND THEY WILL CONCENTRATE ON TRANSPORTATION OPERATIONS BECAUSE JAPANESE LAW FORBIDS SOLDIERS FROM PARTICIPATING IN ANYTHING RESEMBLING COMBAT THAT IS WHY JAPANESE TROOPS IN CAMBODIA ARE KEPT FAR FROM TROUBLE SPOTS AND WHY JAPAN HASN'T SENT PERSONNEL TO JOIN THE MULTILATERAL EFFORT IN SOMALIA ALSO JAPAN'S ACTIONS STILL COME LARGELY IN RESPONSE TO FOREIGN PRESSURE NOT FROM ANY STRONG VISION OF WHAT JAPAN'S WORLD ROLE SHOULD BE JAPANESE OFFICIALS HAVE GRUDGINGLY SOFTENED THEIR STANCE TOWARD RUSSIA MAINLY AS A WAY OF AVERTING HEAVY CRITICISM FROM THE WEST SEVERAL EUROPEAN LEADERS MOST NOTABLY FRENCH PRESIDENT FRANCOIS MITTERRAND HAVE BLASTED JAPAN IN RECENT WEEKS FOR FOOTDRAGGING ON RUSSIA MR MITTERRAND TRIED TO UNDERCUT JAPAN'S ROLE AS THIS YEAR'S G7 LEADER BY CALLING HIS OWN EMERGENCY AID SUMMIT WHILE THE US AND EUROPE HAVE TRIED IN RECENT YEARS TO PROP UP MIKHAIL GORBACHEV AND NOW MR YELTSIN JAPAN HAS REACTED MORE COOLLY JAPAN AND RUSSIA HAVE YET TO SIGN A PEACE TREATY FOR WORLD WAR II LARGELY BECAUSE OF A DISPUTE OVER A CHAIN OF ISLANDS OFF OF NORTHERN JAPAN SEIZED BY THE SOVIET UNION AT THE END OF THE WAR WHILE JAPAN HAS COMMITTED ABOUT 3 BILLION IN AID TO RUSSIA OVER THE PAST FEW YEARS THE GOVERNMENT HAS CITED THE TERRITORIAL DISPUTE AS A REASON FOR NOT DOING MUCH MORE TENSIONS BETWEEN THE TWO COUNTRIES WORSENED LAST SEPTEMBER WHEN MR YELTSIN ABRUPTLY CANCELED PLANS TO VISIT TOKYO BLAMING JAPANESE INTRANSIGENCE ON THE ISLANDS ISSUE JAPANESE OFFICIALS SAID THEY WERE INSULTED BY MR YELTSIN'S STATEMENTS AND THERE WAS SPECULATION THEY WOULD USE THEIR ROLE AS HOST OF THIS YEAR'S G7 SUMMIT TO BLOCK MR YELTSIN FROM ATTENDING INSTEAD JAPAN'S ROLE AS G7 COORDINATOR IS FORCING IT TO PLAY DOWN ITS BILATERAL PROBLEMS AND ACT MORE DIPLOMATICALLY TAKING THE FORMAL LEAD IN MULTILATERAL EFFORTS TO HELP MR YELTSIN LAST WEEK US SECRETARY OF STATE WARREN CHRISTOPHER REBUFFED SUGGESTIONS THAT JAPAN WAS HAMPERING WORLD EFFORTS TO HELP RUSSIA TELLING AN AUDIENCE IN CHICAGO THERE IS A LONGSTANDING CONTROVERSY REGARDING THE ISLANDS BUT MY OWN FEELING IS THAT THE JAPANESE RECOGNIZE THE URGENCY OF AID TO DEMOCRACY AND FREE MARKET REFORM IN RUSSIA 9303290150 930329 ASTRONICS TO REDEEM DEBENTURES ORCHARD PARK NY ASTRONICS CORP SAID IT WILL REDEEM ALL ITS OUTSTANDING SERIES 1025 SUBORDINATED DEBENTURES DUE SEPT 1 1996 AT 101 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE MAKER OF LIGHTING AND SWITCH SYSTEMS HAS 87 MILLION PRINCIPAL AMOUNT OUTSTANDING IT WILL FINANCE THE REDEMPTION WITH A FIVEYEAR BANK LOAN DEBENTURE HOLDERS WILL BE PAID APRIL 30 9303290149 930329 UNION BOSS AT GM'S SATURN UNIT FACES TOUGH RUNOFF BID BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE UNION LEADER WHO HAS CHAMPIONED A COOPERATIVE RELATIONSHIP WITH MANAGEMENT AT GENERAL MOTORS CORP'S SATURN SUBSIDIARY FACES A TOUGH CHALLENGE THIS WEEK IN A RUNOFF ELECTION MICHAEL BENNETT PRESIDENT OF UNITED AUTO WORKERS LOCAL 1853 RECEIVED 2552 VOTES OR 48 OF THE VOTES CAST IN A 24HOUR ELECTION THAT ENDED FRIDAY MORNING BOB HOSKINS WHO WILL FACE MR BENNETT IN A RUNOFF ELECTION THURSDAY RECEIVED 1783 VOTES OR 34 OF THE VOTES WHILE TWO OTHER CANDIDATES DIVIDED UP THE REST OF THE VOTES IF HE SUCCEEDS IN UNSEATING MR BENNETT MR HOSKINS SAID HE WOULDN'T MAKE ANY BIG CHANGES IN SATURN'S UNIQUE PARTNERSHIP WITH ITS WORKERS IT'S NOT A REFERENDUM TO CHANGE SATURN SAID MR HOSKINS WHO CAME TO SATURN THREE YEARS AGO AFTER GM CLOSED HIS HOME PLANT IN NORWOOD OHIO WE'RE NOT ADVOCATING GOING BACK TO THE OLD WORLD OF LABOR RELATIONS STILL THE CLOSE ELECTION UNDERSCORES THE SURPRISINGLY HIGH LEVEL OF DISSENT THAT EXISTS IN SATURN WHICH HAS PRIDED ITSELF ON TEAMWORK AND CONSENSUS BUILDING GM UNDER PRESSURE TO QUICKLY TURN AROUND ITS NORTH AMERICAN OPERATIONS IS PRESSING SATURN TO MAKE MONEY THIS YEAR AND THAT'S PUTTING MORE PRESSURE ON THE WORKERS WHEN GM IS FEELING PAIN SATURN IS FEELING PAIN SAID MR BENNETT THAT'S WHY MORE RESOURCES AREN'T AVAILABLE TO SOLVE PROBLEMS HERE MANY WORKERS DISLIKE THE COMPANY'S SHIFT ROTATION SYSTEM UNDER WHICH WORKERS ROTATE EVERY OTHER WEEK BETWEEN DAY SHIFT AND NIGHT SHIFT IT KEEPS YOU EXHAUSTED SAID MR HOSKINS IT'S JUST A BEAR MR BENNETT'S LEADERSHIP STYLE IS ANOTHER ISSUE HE NEEDS MORE VISIBILITY ON THE FLOOR SAID MR HOSKINS HE'S LOST TOUCH WITH THE MEMBERSHIP THREE DIFFERENT OPPOSITION SLATES RAN AGAINST MR BENNETT'S ADMINISTRATION CAUCUS IN THE ELECTION LAST WEEK THE ADMINISTRATION CANDIDATES RAN FIRST IN ALL 10 RACES BUT SEVEN OF THEM FAILED TO GET A MAJORITY AND THUS WERE FORCED INTO THE THURSDAY RUNOFF THE OTHER THREE ADMINISTRATION CANDIDATES INCLUDING FIRST VICE PRESIDENT JOE RYPKOWSKI WON REELECTION BIDS THERE'S A GOOD OPPORTUNITY FOR THIS ENTIRE TEAM TO GO BACK INTO OFFICE IN THE RUNOFF ELECTIONS SAID MR BENNETT WHO PREDICTED HE WOULD WIN REELECTION AS FOR MR HOSKINS HE'S PREDICTING A VERY CLOSE ELECTION IT'S AN UPHILL BATTLE HE SAID BUT I HAVE A CHANCE TO WIN 9303290148 930329 DIVIDEND NEWS SOUTHWESTERN BELL CORP SOUTHWESTERN BELL CORP SAN ANTONIO ANNOUNCED A 2FOR1 STOCK SPLIT CITING CONTINUED STRONG PERFORMANCE AND LONGTERM GROWTH POTENTIAL THE REGIONAL BELL TELEPHONE COMPANY SAID THE SPLIT IS EFFECTIVE MAY 7 FOR SHARES OF RECORD THAT DATE THE COMPANY ALSO RAISED ITS QUARTERLY DIVIDEND 34 TO 755 CENTS A SHARE FROM 73 CENTS PAYABLE MAY 3 TO SHARES OF RECORD APRIL 10 AFTER THE SPLIT THE DIVIDEND WILL BE 3775 CENTS 9303290147 930329 SANYO ELECTRIC EXPANSION TOKYO SANYO ELECTRIC CO WILL MORE THAN TRIPLE ITS PRODUCTION CAPACITY FOR AUDIOVIDEO PARTS WITH THE COMPLETION OF TWO NEW FACTORIES IN MEXICO A SPOKESMAN FOR THE JAPANESE ELECTRONICS MAKER SAID THE FACILITIES ARE TO SERVE AS ADJUNCTS TO A CURRENT SANYO PRODUCTION LINE IN TIAJUANA A MEXICAN LOCALE JUST ACROSS THE BORDER FROM SOUTHERN CALIFORNIA 9303290146 930329 NEC SET TO PRODUCE NEW CHIP TOKYO NEC CORP WILL LAUNCH MASS PRODUCTION OF FOUR MEGABIT FLASH MEMORY CHIPS AS EARLY AS THIS SUMMER A SPOKESMAN FOR THE JAPANESE COMPUTER AND SEMICONDUCTOR MAKER SAID NEC WILL START WITH INITIAL OUTPUT OF 100000 OF THE CHIPS A MONTH STEPPING UP MANUFACTURE BASED ON DEMAND THE SPOKESMAN SAID HE SAID THE COMPANY WILL UTILIZE A PRODUCTION LINE IN JAPAN'S YAMAGUCHI PREFECTURE A FLASH MEMORY IS A COMPUTER CHIP THAT RETAINS STORED INFORMATION EVEN IF POWER IS SWITCHED OFF IT ALLOWS THE USER TO WRITE AND ERASE DATA AS NECESSARY 9303290144 930329 LEISURE & ARTS TV DE NIRO'S TRIBECA' BY ROBERT GOLDBERG OVER THE YEARS THE BLACKTURTLENECK CROWD IN ITS QUEST FOR THE GREAT MYTHIC DOWNTOWN A NEW YORK CITY HOME WHERE THE RENTS ARE CHEAP AND THE LOFT SPACES HUGE WHERE WINE MUSIC AND ART FLOW THROUGH THE STREETS HAS PUSHED EVER DOWNWARD EVER SOUTHWARD THROUGH MANHATTAN FIRST GREENWICH VILLAGE THEN SOHO BUT EVERY TIME AN AREA BECAME HIP OR COOL OR PHAT THE LATEST WORD IN CAME THE BOUTIQUES AND THE LAWYERS AND THE BOHEMIAN TENANTS HAD TO MOVE ON ABOUT 15 YEARS AGO THEY CAME TO THE LAST OUTPOST OF DOWNTOWN THE FURTHEST SOUTH YOU CAN GO BEFORE YOU RUN INTO THE WATER THE TRIANGLE BELOW CANAL STREET TRIBECA THESE DAYS DOWNTOWN ISN'T DOWNTOWN ANYMORE IT'S SHIFTED ACROSS TO THE EAST VILLAGE OR OUT OF MANHATTAN ALTOGETHER TO OTHER BOROUGHS OTHER STATES BUT STILL TRIBECA HAS AN ALLURE THE ALLURE OF PHAT CITY AND NOW IT HAS ITS VERY OWN TV SHOW AS WELL A PROGRAM WITH AN IMPRESSIVE PEDIGREE CREATED BY DAVID J BURKE WISEGUY EXECUTIVE PRODUCED BY ROBERT DE NIRO WHO LIVES AND WORKS THERE TRIBECA FOX TUESDAYS 910 PM EST IS A SERIES OF URBAN SHORT STORIES FOR THE SMALL SCREEN FEATURING SOME OF NEW YORK'S FINER ACTORS THE SEGMENTS ARE LINKED ONLY BY A FEW RECURRING CHARACTERS PHILIP BOSCO AS HARRY THE CAFE OWNER AND JOE MORTON AS CARLETON THE MOUNTED POLICEMAN AND OF COURSE A LOCALE TRIBECA OF THE CAST IRON THE HIGH CEILINGS THE CORINTHIAN COLUMNS AND THE DIRTY SIDEWALKS THIS WEEK'S EPISODE HONOR TELLS THE STORY OF LOU A HOMELESS VETERAN STEPHEN LANG LIVING IN BATTERY PARK HE'S TRYING TO ARRANGE A FITTING BURIAL FOR HIS FRIEND ANOTHER FORMER MARINE IN ACCORDANCE WITH HIS FRIEND'S LAST REQUEST TO BE BURIED AT SEA LOU HAULS THE CORPSE ONTO THE STATEN ISLAND FERRY AND TOSSES IT INTO THE HUDSON RIVER WITH AS MUCH CEREMONY AS HE CAN MUSTER THAT'S WHEN THE DEPARTMENT OF PAIN AS LOU CALLS THE POLICE STEPS IN OFFICERS FISH THE BODY OUT OF THE RIVER THEN ROUST LOU FROM THE PUBLIC PARK WHERE HE MAKES HIS HOME STRIPPED OF EVERYTHING EVEN HIS SHOPPING CART LOU STRUGGLES TO KEEP HIS DIGNITY AND HIS PROMISE TO HIS FRIEND THIS IS A POWERFUL AND MOVING EPISODE ONE THAT FOR THE MOST PART RESISTS THE TEMPTATION TO SENTIMENTALIZE LOU HONOR UNDERSTANDS THE STRANGE MIX OF EMOTIONS THAT THESE SCRAGGILY UNPREDICTABLE BAGMEN INSPIRE IN CITY DWELLERS FEAR AND SORROW COMPASSION AND MORE DISDAIN THAN WE'D LIKE TO ADMIT CARLETON WANTS TO HELP HIM BUT LOU REFUSES TO BE COOPTED HIS SARCASM IS HIS SHIELD YOU WANT TO REACH OUT AND TOUCH THE TABOO RUB UP AGAINST THE UNDERCLASS AND LIVE TO TELL THE TALE WELL I'M NOT A HOBBY TRIBECA HAS A SURPRISINGLY DEFT WAY WITH SOCIAL COMMENTARY BUT ITS MAJOR CONSISTENT SUCCESS IS THE RICHNESS OF ITS CHARACTERS IN ONE FUTURE EPISODE PETER BOYLE STARS AS NICK POLITO A CHARMING MIDDLEAGED GENT WHO ROMANCES LONELY WOMEN THEN LEAVES WITH THEIR MONEY AFTER A DAY OR TWO SO MANY WOMEN MISINTERPRET THINGS THAT ARE SAID IN THE HEAT OF THE MOMENT HE SAYS EVEN WHEN CAUGHT DEAD TO RIGHTS NICK SHRUGS I'M JUST A HOPELESS ROMANTIC WHAT WE HAD IT'S LIKE A POEM A DAYDREAM YOU TEMPT FATE WHEN YOU TRY TO MAKE IT LAST FOREVER LIKE SEVERAL OF THE OTHERS WHO WANDER THROUGH TRIBECA NICK IS A WONDERFUL PERSONALITY WELLWRITTEN AND WELLACTED AND TRIBECA WORKS BECAUSE CHARACTER NOT PLOTTING IS THE ENGINE OF THESE SHORT DRAMAS WHAT A SURPRISE TO SEE AN EPISODE THE BOX ABOUT THE MURDER OF A COP'S BROTHER IN WHICH THE FINDING OF THE KILLER IS ALMOST INCIDENTAL THE REAL STORY IS THE COP COMING TO TERMS WITH HIS RAGE AND HIS GRIEF AND WHAT A SURPRISE TO SEE THIS TYPE OF COMPLEX NUANCED PIECE ON FOX THE HOME OF STINKYFEET JOKES TRIBECA IS ONE AMBITIOUS SERIES AS IN ANY SHOW THAT TAKES RISKS HOWEVER THERE ARE HITS AND MISSES HONOR FEATURES AN EXTRAVAGANT THEATRICAL DEVICE POETRY READ DIRECTLY TO CAMERA I AM NEW YORK CITY HERE IS MY BRAIN OF HOT SAUCE I AM NEW YORK CITY MY SKILLETHEADED FRIEND MY FATBELLIED COMRADE CITIZENS BREAK WIND WITH ME THE IDEA LURKING IN THOSE LINES SIMPLY SINKS UNDER THE WEIGHT OF THEIR SELFCONSCIOUS STAGINESS THEN TOO TRIBECA IS BURDENED WITH A CERTAIN MUSHY TENDENCY A ROMANTICIZED VISION THAT THE PRODUCERS ARE ALWAYS FIGHTING TO KEEP IN CHECK TAKE EVEN THE DEPICTION OF TRIBECA ITSELF TERMED A SMALL TOWN IN THE HEART OF THE CITY THIS TRIBECA IS A WARM COZY SORT OF PLACE WHERE EVERYONE SEEMS TO KNOW EVERYONE LIKE THE BAR IN CHEERS THE REAL TRIBECA OF COURSE IS NO TOWN IT'S ONLY BARELY A NEIGHBORHOOD A FEW DOZEN COLD BARREN WINDSWEPT STREETS THAT NO ONE WOULD CALL HOMEY ACTUALLY THE PRODUCERS CHEAT BY SHOOTING IN THE WEST VILLAGE AND SOHO FOR A WARMER COZIER LOOK BUT MAKE NO MISTAKE ABOUT THE SIGNIFICANCE OF TRIBECA FOR THE PAST THREE DECADES THE ANTHOLOGYSERIES FORMAT HAS FOR ALL INTENTS AND PURPOSES BEEN MISSING IN ACTION ONCE IT WAS A STAPLE OF TV'S GOLDEN AGE BACK IN THE 1950S WHEN SHOWS LIKE STUDIO ONE KRAFT TV THEATRE AND PULITZER PRIZE PLAYHOUSE INTRODUCED AMERICA TO A WIDE RANGE OF DRAMAS AND DRAMATIC TALENTDIRECTORS SUCH AS SIDNEY LUMET JOHN FRANKENHEIMER AND GEORGE ROY HILL ACTORS SUCH AS JACK NICHOLSON ROBERT REDFORD AND WALTER MATTHAU THE NOBRAINER EFFICIENCY OF SHOOT'EMUPS AND MELODRAMAS ESSENTIALLY DROVE THE ANTHOLOGY SERIES OFF THE AIR AFTER ALL IT'S MUCH EASIER TO FILM A FEW BIMBOS IN BIKINIS AND A FEW CAR CHASES THAN TO CREATE A NEW DRAMA EACH AND EVERY WEEK THE DARING OF FOX IS TO REPRISE A GRAND OLD FORMAT IN A NEW SETTING WITH TOP PRODUCTION VALUES A FILMIC LOOK AND QUIRKY MUSIC TRIBECA IS A PLAYHOUSE 90 FOR THE '90S IT BRINGS BACK WEEKLY DRAMA A NOTION THAT'S NOT JUST WORTHWHILE BUT IMPORTANT LET'S HOPE OTHER PRODUCERS GET THE IDEA WE'RE HEADING DOWNTOWN 9303290143 930329 UNUM COMPLETES ACQUISITION PORTLAND ME UNUM CORP SAID IT COMPLETED ITS ACQUISITION OF COLONIAL COS A SUPPLEMENTAL INSURANCE CONCERN FOR ABOUT 656 MILLION IN SECURITIES UNDER THE AGREEMENT UNUM A SPECIALTY INSURANCE COMPANY EXCHANGED 0731 SHARE OF ITS COMMON STOCK FOR EACH SHARE OUTSTANDING OF COLONIAL CLASS A AND CLASS B STOCK COLONIAL HAD ABOUT 19 MILLION SHARES OF CLASS A VOTING COMMON STOCK OUTSTANDING AND 137 MILLION SHARES OF CLASS B NONVOTING COMMON STOCK OUTSTANDING 9303290142 930329 COORS ASKS SEC FOR EXTENSION DENVER ADOLPH COORS CO SAID IT ASKED THE SECURITIES AND EXCHANGE COMMISSION FOR AN EXTENSION OF THE DUE DATE FOR ITS ANNUAL REPORT AND 10K THE DIVERSIFIED BREWERY COMPANY SAID IT EXPECTS TO REACH A SETTLEMENT SOON WITH THE CITY AND COUNTY OF DENVER IN A LAWSUIT INVOLVING THE LOWRY LANDFILL SUPERFUND SITE THE COMPANY SAID IT WANTS TO INCLUDE THE SETTLEMENT IN ITS ANNUAL REPORT COORS SAID IT DOESN'T EXPECT THE SETTLEMENT WILL REQUIRE SIGNIFICANT CHANGES TO THE 30 MILLION RESERVE IT TOOK IN 1990 TO COVER ITS PART OF THE REMEDIATION COSTS OF THE WASTE DUMP 9303290141 930329 CHURCHILL DOWNS NEW LISTING LOUISVILLE KY CHURCHILL DOWNS INC SAID IT WILL BE LISTED ON THE NASDAQ SMALLCAP MARKET BEGINNING TODAY THE MOVE FROM THE PINK SHEETS SHOULD INCREASE THE STOCK'S EXPOSURE INCREASING THE RACETRACK OPERATOR'S ACCESS TO CAPITAL CHURCHILL DOWNS SAID THAT IN TURN COULD ALLOW IT TO EXPAND THE COMPANY SAID IT IS CONSIDERING BUILDING RACETRACK AND OFFTRACK WAGERING FACILITIES IN VIRGINIA AND INDIANA 9303290140 930329 WHO'S NEWS VIDEOCART INC VIDEOCART INC CHICAGO THE COMPANY SAID ITS 48YEAROLD FOUNDER JOHN MALEC RESIGNED AS CHAIRMAN AND AS A DIRECTOR THE MAKER OF VIDEO DISPLAYS ATTACHED TO GROCERY SHOPPING CARTS SAID MR MALEC RESIGNED TO AVOID POTENTIAL CONFLICT OF INTEREST IN PURSUING A BUSINESS PROPOSAL HE HAD MADE TO ACQUIRE CERTAIN TECHNOLOGY ASSETS OF THE COMPANY VIDEOCART DECLINED TO ELABORATE THE COMPANY SAID IT ISN'T IMMEDIATELY FILLING THE POSITION OF CHAIRMAN AND THAT A THREEPERSON EXECUTIVE COMMITTEE HAS BEEN CREATED COMPOSED OF OUTSIDE DIRECTORS EARLIER LAST WEEK THE BOARD NAMED RONALD E SPEARS 44 TO SUCCEED MR MALEC AS CHIEF EXECUTIVE OFFICER MR SPEARS RETAINS HIS POSITION AS PRESIDENT 9303290139 930329 WHO'S NEWS FORTIS GROUP OF COS FORTIS GROUP OF COS BRUSSELS AND UTRECHT NETHERLANDS THIS WORLDWIDE INSURANCE AND FINANCIAL SERVICES CONCERN NAMED ALLEN R FREEDMAN TO THE 12MEMBER EXECUTIVE BOARD FILLING A VACANCY MR FREEDMAN 53 YEARS OLD IS CHAIRMAN OF THE FORTIS INC US UNIT HIS APPOINTMENT NOW GIVES FORTIS'S US BUSINESS A DIRECT VOICE ON THE EXECUTIVE BOARD FORTIS IS JOINTLY OWNED BY AG GROUP OF BELGIUM AND NV AMEV OF THE NETHERLANDS FORTIS INC THE US UNIT IS BASED IN NEW YORK 9303290138 930329 KIMMINS OFFERS STAKE IN UNIT TAMPA FLA KIMMINS ENVIRONMENTAL SERVICE CORP SAID IT MADE AN INITIAL PUBLIC OFFERING OF 25 OF ITS TRANSCOR WASTE SERVICES INC UNIT FOR 5 MILLION KIMMINS A SOLIDWASTE MANAGEMENT AND ENVIRONMENTAL INDUSTRIAL SERVICES CONCERN RETAINS ABOUT 74 OF THE UNIT IT SAID NET PROCEEDS WOULD BE USED TO EXPAND TRANSCOR WHICH PROVIDES SOLIDWASTE MANAGEMENT SERVICES IN FLORIDA WHALE SECURITIES CO LIMITED PARTNERSHIP IS MANAGING THE UNDERWRITING 9303290137 930329 BUSINESS BRIEF AIR LIQUIDE SA PROFIT WAS UP 42 IN 1992 AT INDUSTRIAL GAS CONCERN FRENCH INDUSTRIAL GAS COMPANY AIR LIQUIDE SA ANNOUNCED A 42 RISE IN 1992 NET GROUP PROFIT BEFORE EXCEPTIONAL ITEMS TO 222 BILLION FRANCS 380 MILLION FROM 213 BILLION FRANCS THE COMPANY HAS PROPOSED HOLDING ITS NET PERSHARE DIVIDEND STEADY AT 14 FRANCS AS REPORTED PREVIOUSLY CONSOLIDATED REVENUE FELL 59 TO 2993 BILLION FRANCS CASH FLOW LESS EXCEPTIONAL ITEMS TOTALED 505 BILLION FRANCS REPRESENTING 17 OF REVENUE AIR LIQUIDE'S RATIO OF DEBT TO EQUITY FELL TO 20 AT THE END OF 1992 FROM 27 A YEAR EARLIER 9303290136 930329 TANDY'S TE TO SELL UNIT TO NORAND CORP WILL TAKE A CHARGE FORT WORTH TEXAS TE ELECTRONICS INC A UNIT THAT TANDY CORP IS PROPOSING TO SPIN OFF SAID IT AGREED TO SELL ITS MICRONIC HANDHELD COMPUTER OPERATION TO NORAND CORP IT SAID IT WOULD TAKE A 20 MILLION CHARGE IN THE FISCAL SECOND QUARTER ENDED DEC 31 TO COVER THE SALE AND TWO OFFICE CLOSINGS IN THE EUROPEAN OPERATIONS OF ANOTHER UNIT THE ELECTRONICS COMPANY SAID THE CHARGE COVERS THE LOSS OF ASSETS FROM THE SALE AND AN ADJUSTMENT IN GOODWILL SINCE MICRONIC WAS ACQUIRED BY TANDY ALONG WITH THE VICTOR MICROCOMPUTER UNIT FROM DATATRONIC AB THE CHARGE ALSO COVERS AN ADJUSTMENT OF GOODWILL AND A LOSS OF ASSETS ASSOCIATED WITH THE COMPANY'S PLAN TO CLOSE TWO OF ITS TANDY/GRIDEUROPE OFFICES TO STREAMLINE ITS EUROPEAN OPERATIONS THE GRIDEUROPE UNIT MAKES AND MARKETS PENBASED COMPUTER PRODUCTS OPERATIONS IN WHICH TE WILL REMAIN ACTIVE THROUGH GRID'S OTHER EUROPEAN OFFICES NORAND THE PURCHASER MAKES PORTABLE KEY ENTRY COMPUTERS USED IN SALES DISTRIBUTION AND INVENTORY CONTROL THE SALE OF MICRONIC IS PART OF TE'S STRATEGY TO FOCUS ON GRID'S PENBASED COMPUTERS PRODUCTS THAT MICRONIC DIDN'T MAKE A COMPANY SPOKESMAN SAID MICRONIC OPERATED SOLELY IN EUROPE AND ITS MARKETS WERE CENTERED IN GERMANY SPAIN DENMARK SWEDEN THE UNITED KINGDOM FINLAND AND FRANCE THE COMPANY DECLINED TO DISCLOSE WHAT PORTION OF TE'S REVENUE WAS GENERATED BY MICRONIC OR WHETHER MICRONIC WAS PROFITABLE THE SALE WHICH IS SUBJECT TO REGULATORY APPROVAL WILL DELAY THE FILING OF TANDY'S 10K ANNUAL REPORT TO THE SECURITIES AND EXCHANGE COMMISSION AND THE RELEASE OF SECONDQUARTER RESULTS UNTIL APRIL 7 THE COMPANY SAID THE SPOKESMAN SAID TANDY EXPECTS TO COMPLETE ITS SPINOFF OF TE IN MIDSUMMER 9303290135 930329 INSITUFORM TO BUY NAYLOR MEMPHIS TENN INSITUFORM TECHNOLOGIES INC SAID IT AGREED TO ACQUIRE NAYLOR INDUSTRIES INC OF HOUSTON FOR 515 A SHARE IN A CASH TRANSACTION VALUED AT ABOUT 23 MILLION NAYLOR WITH ABOUT 48 MILLION COMMON SHARES OUTSTANDING PROVIDES PIPING SYSTEM INSPECTION AND RECONSTRUCTION SERVICES INSITUFORM SPECIALIZES IN THE TECHNOLOGIES USED IN THE LINING OF PIPELINES SEWERS AND TUNNELS NAYLOR AND INSITUFORM HAVE BEEN TRYING TO REACH AN AGREEMENT ON THE TRANSACTION SINCE A LETTER OF INTENT ANNOUNCED IN NOVEMBER THE TRANSACTION SUBJECT TO BOARD AND STOCKHOLDER APPROVALS AND OTHER CONDITIONS IS EXPECTED TO BE COMPLETED BY THE END OF JUNE 9303290134 930329 EC CLEARS ACQUISITION BRUSSELS THE EUROPEAN COMMUNITY COMMISSION SAID IT CLEARED THE ACQUISITION BY FRENCH CHEMICAL CONCERN SANOFI SA A UNIT OF SOCIETE NATIONALE ELF AQUITAINE OF MAJORITY CONTROL OF THE YVES SAINTLAURENT SCA GROUP THROUGH A SHARE SWAP IN A STATEMENT THE COMMISSION SAID THE TAKEOVER WOULDN'T CREATE OR STRENGTHEN A DOMINANT POSITION IN THE FASHION BEAUTYPRODUCT OR PERFUME MARKETS THE COMMISSION SAID THE MARKETS FOR PERFUMES AND BEAUTY PRODUCTS ARE CHARACTERIZED BY STIFF COMPETITION AMONG MANY LARGE PLAYERS IT SAID THAT AFTER THE MERGER SANOFI WILL HAVE ABOUT A MARKET SHARE OF LESS THAN 10 IN THE EC AS A WHOLE AND OF NO MORE THAN 20 IN ANY ONE EC MEMBER COUNTRY 9303290133 930329 BUSINESS BRIEF BRISTOLMYERS SQUIBB CO FACILITY IN SYRACUSE NY SCHEDULED TO BE EXPANDED BRISTOLMYERS SQUIBB CO PRINCETON NJ SAID IT WILL EXPAND ITS SYRACUSE NY PLANT AT A COST OF ABOUT 30 MILLION TO DEVELOP A NEW ANTICANCER DRUG THE 32000SQUAREFOOT EXPANSION OF BRISTOLMYERS'S BIOLOGICAL PILOT PLANT WILL ALSO INCREASE THE COMPANY'S PHARMACEUTICAL MANUFACTURING CAPACITY THE EXPANSION WILL CREATE 13 NEW JOBS THE COMPANY SAID THE NEW DRUG CALLED BR96 IS THE MAGICBULLET DRUG THAT CAN HONE IN ON A SPECIFIC CANCER CELL AND KILL IT THE COMPANY SAID THE DRUG IS EXPECTED TO ENTER HUMAN CLINICAL TRIALS BY THE END OF YEAR 9303290132 930329 MANAGER'S JOURNAL NAFTA CREATES JOBS FOR JOE AND JOSE BY JEFFREY P GANNON MEXICO CITY MANY AMERICANS HAVE HEARD ARGUMENTS RECENTLY THAT PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT WILL CAUSE BUSINESSES TO MOVE THEIR MANUFACTURING BASE SOUTH BUT THAT'S NOT WHY GENERAL ELECTRIC IS EXCITED ABOUT NAFTA GE HAS BEEN IN MEXICO SINCE 1896 WITH PRODUCTION FACILITIES HERE SINCE 1930 BUT OUR PRIMARY INTEREST IN MEXICO ISN'T EXPANDING A LOWCOST MANUFACTURING EXPORT BASE FOR US MARKETS INSTEAD IT'S EXPORTING TO MEXICO MOSTLY USMADE PRODUCTS LIKE RAILROAD LOCOMOTIVES AIRCRAFT ENGINES GAS TURBINES AND SOPHISTICATED MEDICAL ELECTRONICS AS MEXICAN ECONOMIC DEVELOPMENT ACCELERATES THIS DEVELOPMENT WOULD ACCELERATE FURTHER WITH PASSAGE OF NAFTA WHEN PRESIDENT CARLOS SALINAS DE GORTARI TOOK OFFICE IN 1988 GE SALES IN MEXICO TOTALED ONLY 330 MILLION OUR 1992 SALES AND ORDERS EXCEEDED 15 BILLION NEARLY FIVE TIMES THE VOLUME IN AS MANY YEARS WHY MEXICO'S BUSINESS ENVIRONMENT HAS BEEN TRANSFORMED BY DRAMATIC REDUCTIONS IN IMPORT DUTIES LIBERALIZATION OF FOREIGN INVESTMENT STATUTES STABILIZATION OF THE PESO AND IMPROVEMENTS IN INTELLECTUAL PROPERTY PROTECTION THESE CHANGES HAVE BENEFITED MEXICAN ENTERPRISES AND FOREIGN ESPECIALLY US COMPANIES ALIKE NAFTA OFFERS THE CHANCE TO REINFORCE MEXICO'S INTEGRATION INTO THE GLOBAL ECONOMY IN 1992 GE BUSINESSES BASED IN THE US SOLD MORE GOODS TO MEXICO 750 MILLION THAN ALL GE MEXICANBASED OPERATIONS SOLD TO THE US 500 MILLION THIS CONTRIBUTED TO THE OVERALL FAVORABLE US BALANCE OF TRADE WITH MEXICO OF SOME 5 BILLION FOR THE YEAR WORKING FROM THE US COMMERCE DEPARTMENT ASSUMPTION THAT EVERY 1 BILLION IN US EXPORTS SUPPORTS 20000 DOMESTIC JOBS GE'S 750 MILLION IN EXPORTS TO MEXICO LAST YEAR SUPPORTED 15000 US JOBS WHILE SOME MAY WISH THAT ALL PRODUCTS GE SELLS THROUGHOUT THE WORLD COULD BE MADE IN THE US OR AT LEAST THAT ALL PRODUCTS THAT GE SELLS IN THE US COULD BE MADE IN THE US THE COMPETITIVE DYNAMICS OF GLOBAL COMPETITION DON'T ALLOW IT SUCCESSFUL COMPANIES ARE REVAMPING THEIR PRODUCTION AND MARKETING STRATEGIES TO SERVE THEIR INCREASINGLY INTEGRATED REGIONAL MARKETS BY PRODUCING LOCALLY WHAT THEY CAN AND IMPORTING FROM ELSEWHERE WHAT THEY MUST SOME PRODUCTS ARE PRODUCED MORE EFFICIENTLY IN THE US THAN IN CANADA OR IN MEXICO OTHERS ARE MORE EFFICIENTLY PRODUCED IN MEXICO CANADA OR ON ANOTHER CONTINENT DEPENDING ON A COMBINATION OF FACTORS FROM CUSTOMER PREFERENCES TO ECONOMIES OF SCALE TO THE AVAILABILITY OF HIGHLY TRAINED HIGHVALUEADDED WORKERS FOR EXAMPLE MOST CONSUMERS IN THE US PREFER REFRIGERATORS WITH TWO DOORS GIVEN THE LOW SALES VOLUME OF SINGLEDOOR REFRIGERATORS IN THE US IT SIMPLY ISN'T EFFICIENT FOR GE TO MANUFACTURE THEM ON ITS OWN SO GE EITHER LOSES THAT PARTICULAR MARKET SEGMENT OR IT REACHES ABROAD IN MEXICO BY CONTRAST MANY CONSUMERS PREFER SINGLEDOOR REFRIGERATORS BY COMBINING EFFORTS WITH A JOINTVENTURE PARTNER IN MEXICO GE PROVIDES HIGHQUALITY SINGLEDOOR REFRIGERATORS TO THE SMALL SEGMENT OF THE US MARKET THAT DEMANDS THEM AT THE SAME TIME LARGE FULLY EQUIPPED GE REFRIGERATORS MADE IN PLACES LIKE LOUISVILLE KY AND DECATUR ALA ARE EXPORTED TO MEXICO FOR THE MARKET SEGMENT HERE THAT DEMANDS HIGHEND PRODUCTS IT'S A REGIONAL INTERCHANGE THAT BENEFITS CONSUMERS AND PROVIDES JOBS IN BOTH COUNTRIES CUSTOMER TASTE AND ECONOMIC WHEREWITHAL TRANSLATE INTO A COMPETITIVE STRATEGY THAT MAKES SENSE AS THE MEXICAN ECONOMY GROWS A KEY PRIORITY WILL BE INFRASTRUCTURE DEVELOPMENT THE US AGENCY FOR INTERNATIONAL DEVELOPMENT ESTIMATES THAT POWER DEMAND IN MEXICO WILL GROW BY AS MUCH AS 7 ANNUALLY BETWEEN 1989 AND 1999 AND THAT MEXICO WILL SPEND 34 BILLION IN ITS EXPANSION DURING THAT PERIOD THIS DEVELOPMENT TRANSLATES INTO JOBS FOR GE AND US WORKERS FOR EXAMPLE THE RECENT ORDER WE RECEIVED TO HELP CONSTRUCT THE SAMALAYUCA II POWER PLANT IS WORTH MORE THAN 200 MILLION TO GE AND WILL GENERATE MORE THAN 700 EMPLOYEEYEARS OF WORK IN SCHENECTADY NY AND GREENVILLE SC FINALIZING A NAFTA AGREEMENT MAY SPUR THE OPENING OF SOME NEW USOWNED MANUFACTURING PLANTS IN MEXICO MOSTLY TO SERVE THE MEXICAN MARKET TO A LESSER EXTENT THE AGREEMENT MAY ALSO RESULT IN THE CREATION OF PLANTS DESIGNED TO PRODUCE FOR MARKETS IN THE US AND ELSEWHERE FOR EXAMPLE PLANTS THAT MIGHT OTHERWISE HAVE GONE TO ASIA ARE NOW MORE LIKELY TO BE ESTABLISHED IN MEXICO BUT THE ENTIRELY OPPOSITE OUTCOME IS LIKELY TO OCCUR AT THE SAME TIME IN GE'S CASE SOME OF OUR MEXICAN PLANTS WERE BUILT DECADES AGO TO MEET THE STATIC CONDITION OF A CLOSED MEXICAN ECONOMY TODAY IN THE CONTEXT OF NAFTA THE LOW PRODUCTIVITY OF THOSE PLANTS MAKES IT DIFFICULT TO COMPETE WITH THEIR US COUNTERPARTS UNDER A NAFTA SCENARIO GE WOULD EVALUATE PLANS TO SCALE DOWN THOSE PLANTS AND MEET THE DEMAND FOR THEIR MARKETS FROM EXISTING PRODUCTION CAPACITY IN THE US IN ANY EVENT GE'S MEXICAN MANUFACTURING OPERATIONS WILL CONTINUE TO SERVE BOTH THE US MARKET TO THE NORTH AND THE GROWING MEXICAN MARKET BUT WE EXPECT THAT THE REAL GROWTH IN OUR TWOWAY RELATIONSHIP THROUGH THE 1990S WILL COME FROM EXPORTS SHIPPED TO MEXICO OUT OF OUR US PLANTS COMPLEMENTING AND IN SOME CASES SUBSTITUTING FOR PRODUCTS SHIPPED OUT OF OUR MEXICAN FACILITIES GE'S PRESENCE IN MEXICO WILL THEN HAVE DEVELOPED INTO A COMPETITIVELY MATURE RELATIONSHIP OF EXPORTS MOVING BOTH WAYS ACROSS THE BORDER MEETING THE COMPETITIVE NEEDS OF OUR CUSTOMERS IN COUNTRIES FROM ONE INCREASINGLY INTEGRATED MARKET THAT WILL NOT ONLY CONTRIBUTE TO THE GLOBAL COMPETITIVENESS OF GE BUT ALSO TO GROWTH AND JOBS IN THE US AND MEXICO AS BOTH ECONOMIES EVOLVE WITH CANADA INTO A NORTH AMERICAN MARKETPLACE MR GANNON IS CHAIRMAN AND CEO OF GENERAL ELECTRIC DE MEXICO SA 9303290131 930329 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT MARYLAND NATIONAL BANK A 4927 MILLION OFFERING OF CONSUMER LOAN ASSETBACKED CERTIFICATES WAS PRICED LATE THURSDAY AT PAR TO FLOAT 040 PERCENTAGE POINT ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE LIBOR MARYLAND NATIONAL BANK IS A UNIT OF MNC FINANCIAL INC AND THE OFFERING IS CALLED MNC CONSUMER LOAN ASSETBACKED CERTIFICATES 19931 THE CERTIFICATES HAVE AN AVERAGE LIFE OF 18 YEARS AND A TWOYEAR CALL OPTION AND WERE BROUGHT BY UNDERWRITERS LED BY MERRILL LYNCH & CO THE SENIOR CERTIFICATES ARE RATED TRIPLEA BY BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP BANKERS LIFE HOLDING CORP 17 MILLION COMMON SHARES WERE OFFERED IN AN INITIAL PUBLIC OFFERING AT 22 A SHARE BANKERS LIFE HOLDING WAS FORMED BY CONSECO CAPITAL PARTNERS LP IN 1992 TO ACQUIRE BANKERS LIFE & CASUALTY CO AND ONE OF ITS WHOLLY OWNED SUBSIDIARIES UPON COMPLETION OF THE OFFERING ABOUT 327 OF THE COMPANY'S COMMON STOCK WILL BE OWNED BY THE PUBLIC ABOUT 327 BY CONSECO INC AND THE REMAINDER BY OTHER INSTITUTIONAL INVESTORS WHO INVESTED IN CONSECO CAPITAL PARTNERS AND ITS ACQUISITION HOLDING COMPANIES MERRILL LYNCH & CO DEAN WITTER REYNOLDS INC AND LADENBURG THALMANN & CO MANAGED THE THE US SYNDICATE OFFERING OF 136 MILLION SHARES MERRILL LYNCH INTERNATIONAL LIMITED DEAN WITTER INTERNATIONAL LTD AND LADENBURG THALMANN & CO WERE LEAD MANAGERS OF THE INTERNATIONAL OFFERING OF 34 MILLION SHARES BANKERS LIFE HOLDING HAS GRANTED THE UNDERWRITERS AND MANAGERS AN OPTION TO PURCHASE UP TO 2550000 ADDITIONAL SHARES TO COVER OVERALLOTMENTS IF ANY FIRST DATA CORP 200 MILLION OF NOTES DUE APRIL 1 2003 WAS PRICED AS 6 5/8 S AT 99481 TO YIELD 6697 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS BROOKSTONE INC AN INITIAL OFFERING OF 2750000 COMMON SHARES WAS PRICED AT 1050 EACH THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO IN ITS FILING THE PETERBOROUGH NH SPECIALTY RETAILER SAID IT WOULD SELL 1830000 OF THE SHARES AND CERTAIN STOCKHOLDERS WOULD OFFER THE REMAINING 920000 SHARES FEDERAL NATIONAL MORTGAGE ASSOCIATION 125 BILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WAS OFFERED BY GREENWICH CAPITAL THE OFFERING SERIES 1993G19 IS BACKED BY GINNIE MAE 8 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WAS BEING OFFEREY MERRILL LYNCH & CO THE OFFERING SERIES 1993G20 IS BACKED BY 75 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CERTIFICATES FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WAS OFFERED BY GREENWICH CAPITAL THE OFFERING SERIES 199359 IS BACKED BY FANNIE MAE'S 15YEAR 7 MORTGAGE SECURITIES RTZ CANADA LTD UK PARENT 150 MILLION OF 7 1/4 EUROBONDS DUE DEC 21 1998 AT ISSUE PRICE 100219 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BOOKRUNNER AND UBS PHILLIPS & DREW LTD REOFFERED AT 98644 TO YIELD 7566 MARGIN 70 BASIS POINTS ABOVE COMPARABLE UK GOVERNMENT BOND GUARANTOR RTZ CORP PLC FEES 1 7/8 LONDON ELECTRICITY PLC UK 100 MILLION OF 8 EUROBONDS DUE MARCH 28 2003 AT ISSUE PRICE 10027 VIA SAMUEL MONTAGU & CO AND SG WARBURG & CO LTD REOFFERED AT 9862 TO YIELD 821 ANNUALLY SPREAD 35 BASIS POINTS ABOVE 8 UK GILT DUE 2003 FEES 2 BRITANNIA BUILDING SOCIETY UNITED KINGDOM 25 MILLION OF EURONOTES DUE FEBRUARY 1996 VIA NATWEST CAPITAL MARKETS LTD BONDS WILL TRADE INTERCHANGEABLY WITH 75 MILLION POUNDS OF OUTSTANDING NOTES INTEREST FLOATS AT 15 BASIS POINTS BELOW THREEMONTH LONDON INTERBANK OFFERED RATE FOR STERLING FEES NOT DISCLOSED CREDITANSTALT BANKVEREIN AUSTRIA 75 MILLION OF REVERSECOUPON FLOATING RATE EURONOTES DUE APRIL 27 1998 AT ISSUE PRICE 10020 VIA LEAD UNDERWRITER CREDITANSTALT BANKVEREIN INTEREST PAID AT 4 FOR FIRST SIX MONTHS THEREAFTER AT 11 3/4 MINUS THE SIXMONTH PARIS INTERBANK OFFERED RATE FOR FRENCH FRANCS PAID IN US DOLLARS AT THE PREVAILING US DOLLARFRENCH FRANC EXCHANGE RATE FEES 1/2 PROVINCE OF MANITOBA CANADA 150 MILLION SWISS FRANCS OF 5 1/4 PUBLIC BONDS DUE APRIL 22 2003 PRICED AT 10250 VIA UNION BANK OF SWITZERLAND FEES 2 3/8 9303290130 930329 CREDIT MARKETS BOND RALLY IS VIEWED AT PLATEAU BUT MANAGERS RETAIN OPTIMISM CONCERNING ECONOMY INFLATION BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT LOOKS LIKE THE BOND MARKET RALLY HAS REACHED A PLATEAU BUT MOST MONEY MANAGERS AND ECONOMISTS AREN'T QUITE READY TO HANG UP THEIR HIKING BOOTS YET HOPES FOR A YIELD OF 65 OR BELOW FOR THE 30YEAR TREASURY BOND WHILE DIMINISHED ARE NOT YET EXTINGUISHED THEY SAY DESPITE A BIG SURGE IN YIELDS AND A CORRESPONDING DROP IN BOND PRICES LATE LAST WEEK THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND FRIDAY FELL MORE THAN ONE POINT OR MORE THAN 10 FOR A BOND WITH A 1000 FACE AMOUNT TO 102 1/4 THE YIELD ROSE TO 694 FROM 686 THURSDAY THIS FRIDAY WILL BRING THE GOVERNMENT'S WIDELY WATCHED MONTHLY EMPLOYMENT REPORT AND IT COULD BE A MAJOR TURNING POINT IN EITHER DIRECTION FOR THE BOND MARKET SAYS ANTHONY L KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST NATIONAL BANK OF CHICAGO A REPLAY OF THE FEBRUARY REPORT WHEN NONFARM PAYROLLS JUMPED BY 365000 WOULD BE DEVASTATING HE SAYS THE CONSENSUS AMONG ECONOMISTS IS THAT NONFARM PAYROLLS ROSE BY 100000 IN MARCH WHAT CHILLED THE BOND MARKET FRIDAY WAS THE GOVERNMENT'S REPORT THAT A YARDSTICK OF FOURTHQUARTER INFLATION BASED UPON TOTAL US OUTPUT OF GOODS AND SERVICES SHOWED A 23 GAIN HIGHER THAN THE PREVIOUSLY ESTIMATED 2 BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE GOVERNMENT REPORT COMBINED WITH AN OVERHANG OF UNSOLD NOTES FROM TREASURY AUCTIONS DURING THE WEEK TO PUSH DOWN PRICES FOR NOTES AND BONDS IN THE PAST MONTH REPORTS SUGGESTING THAT THE ECONOMY IS GAINING STRENGTH HAVE RATTLED INVESTORS MANY FEAR THAT INFLATIONARY PRESSURES ARE BUILDING EVEN THOUGH MOST ECONOMISTS CONTEND THIS ISN'T THE CASE MONEY MANAGERS BY AND LARGE AREN'T STOCKING UP ON TREASURY BONDS BUT THEY HAVEN'T BEGUN TO UNLOAD THEM EITHER THIS IS BECAUSE THEY ARE WAITING FOR MORE EVIDENCE THAT THE ECONOMY IS GAINING OR LOSING STRENGTH LONGTERM YIELDS ARE LIKELY TO REMAIN IN A TIGHT RANGE OVER THE NEXT COUPLE OF MONTHS THEY SAY AND A NUMBER OF MONEY MANAGERS ARE TURNING AN INTERESTED EYE TOWARD SHORTERTERM TREASURY SECURITIES MATURING IN TWO TO FIVE YEARS RATES ARE STAYING WITHIN A VERY VERY TIGHT RANGE SAYS JOHN HICKEY HEAD OF THE CAPITAL MARKETS TREASURY GROUP AT KANSALLISOSAKEPANKKI BANK ALTHOUGH YOU HAD A SELLOFF FRIDAY I THINK WE MAY HAVE REACHED THE PLATEAU IN TERMS OF LONGTERM YIELDS SAYS MR KARYDAKIS OF FIRST NATIONAL BANK OF CHICAGO BUT WE MAY BE AROUND HERE FOR A WHILE BECAUSE THE MARKET IS DISPIRITED AND DESPERATELY IN SEARCH OF A NEW FACTOR THAT WILL PROVIDE IT WITH A SENSE OF DIRECTION THE YIELD ON THE 30YEAR TREASURY BOND MAY BE TRAPPED IN A 675 TO 7125 RANGE FOR THE NEXT COUPLE OF MONTHS HE SAYS I THINK THE MARKET HAS PAID TOO MUCH ATTENTION TO THE DISQUIETING INFLATION NUMBERS MR KARYDAKIS SAYS THESE SHOULD NOT BE VIEWED AT LEAST NOT YET AS A RETURN OF HIGH INFLATION WE'RE STILL OVERWEIGHTED ON LONGTERM TREASURY SECURITIES SAYS ALEX POWERS A PORTFOLIO MANAGER AT THE CHASE MANHATTAN PRIVATE BANK THE BANK HAS NEARLY A QUARTER OF THE 350 MILLION IT MANAGES IN LONGTERM TAXABLE BOND FUNDS IN TREASURY SECURITIES MATURING IN 20 YEARS OR MORE WE'RE RELATIVELY BULLISH FOR THE NEXT FEW MONTHS HE SAYS WE BELIEVE RATES COULD GO BELOW THE LOWS WE HIT EARLIER THIS MONTH WHEN THE 30YEAR TREASURY BOND YIELDED 672 HE SAYS BUT NOT AS LOW AS 65 INVESTORS ARE OVERLY WORRIED ABOUT INFLATION SAYS MR POWERS OUR FEELING IS THAT ONE OR TWO BAD NUMBERS DON'T MAKE FOR A BAD INFLATION OUTLOOK HE SAYS THE LONGTERM INFLATION INDICATORS SUCH AS THE PRICES OF COPPER AND GOLD ARE PRETTY POSITIVE HE SAYS MR POWERS SAYS HIGH LEVELS OF CASH HOLDINGS BY MONEY MANAGERS AND A LARGE NUMBER OF REDEMPTIONS OF CERTIFICATES OF DEPOSIT IN APRIL SHOULD KEEP YIELDS LOW OVER THE NEXT COUPLE OF MONTHS ANALYSTS SAY THAT AS MUCH AS 110 BILLION OF LOWYIELDING CDS WILL MATURE IN APRIL AND PART OF THIS CASH IS LIKELY TO FIND ITS WAY INTO THE TREASURY MARKET WHERE YIELDS ARE HIGHER LIKE SOME OTHER MONEY MANAGERS MR POWERS IS THINKING ABOUT MOVING SOME PORTION OF HIS HOLDINGS INTO SHORTERTERM TREASURYS MATURING IN TWO TO FIVE YEARS IF THE POLITICAL WOES OF RUSSIAN PRESIDENT BORIS YELTSIN GROW HE SAYS THERE COULD BE A FLIGHT TO QUALITY AS FOREIGN INVESTORS MOVE TO THE SECURITY OF SHORTTERM TREASURYS AT THE ECONOMICS DEPARTMENT AT GOLDMAN SACHS & CO WHICH WAS ONE OF THE FEW WALL STREET FIRMS LAST YEAR WHOSE ECONOMISTS PREDICTED LONGTERM INTEREST RATES BELOW 7 OPTIMISM FOR LOWER RATES STILL REIGNS WE EXPECT LONGTERM RATES TO BE AT 65 BY SUMMERTIME SAID ONE ECONOMIST THERE THE WEIGHT OF EVIDENCE IS THAT RATES ARE MORE LIKELY TO COME DOWN OR FLATTEN BUT NOT GO HIGHER IN THE FORESEEABLE FUTURE BUT BIG GAINS IN THE MARCH EMPLOYMENT REPORT WOULD CERTAINLY THROW SAND IN THE WHEELS OF THE BOND MARKET HE SAID PRICES OF US TREASURY NOTES AND BONDS ENDED SHARPLY LOWER AFTER THE MARKET WAS PUMMELED BY PLAYERS BAILING OUT OF POSITIONS THE 10YEAR NOTE DROPPED NEARLY 7/8 POINT TO 101 3/32 TO YIELD 609 UP FROM 598 ON THURSDAY THE MARKET WAS HIT SQUARE IN THE FACE WITH A VARIETY OF NEGATIVE FACTORS A MAJOR PART OF THE PROBLEM FOR THE MARKET WAS AN OVERHANG OF SUPPLY FROM TREASURY AUCTIONS OF TWOYEAR NOTES AND FIVEYEAR NOTES WHILE ON THE SURFACE BOTH OFFERINGS WERE WELL RECEIVED MOST OF THE PAPER ENDED UP IN DEALER HANDS WITH LITTLE RETAIL INTEREST IN SIGHT UNFORTUNATELY FOR THOSE DEALERS THEY FOUND THEMSELVES CONFRONTED WITH A DECLINING MARKET AS SOON AS THEY WALKED IN THE DOOR MUNICIPAL BONDS SLUMPED WITH TREASURYS AND WERE ANYWHERE FROM 1/4 POINT TO A FULL POINT LOWER IN LATE TRADING FRIDAY EVEN THOUGH A NUMBER OF MUNI OFFERINGS HAVE BEEN PUT ON HOLD PRICINGS ARE STILL OCCURRING AT A RAPID PACE AND THE SUPPLY CALENDAR IS QUITE HEAVY THE CONSEQUENT CONCERNS ABOUT THE MUNI BUILDUP ARE DEPRESSING PRICES MARKET SPECIALISTS SAY THE GEORGIA MUNICIPAL ELECTRIC AUTHORITY'S 550 POWER REVENUE BONDS OF 2020 CLOSED 3/4 POINT LOWER AT 94 1/4 FOR A YIELD OF 591 MUNI TRADERS KNOW IT THE SUPPLY IS COMING AND THERE'S SUBSTANTIAL SELLING GOING ON SAID A NEW YORK ANALYST THE 2292 BILLION OF LONGTERM AND SHORTTERM MUNICIPAL ISSUES PRICED SO FAR THIS MONTH IS A RECORD FOR MARCH SAYS SECURITIES DATA CO THE PREVIOUS MARCH ISSUANCE RECORD OF 2054 BILLION WAS SET LAST YEAR SO FAR THIS MONTH 847 MUNI OFFERINGS HAVE BEEN PRICED SECURITIES DATA SAYS IN MARCH 1992 THERE WERE A TOTAL OF 1237 ISSUES THE 167 BILLION OF LONGTERM MUNIS PRICED IN FEBRUARY WAS A RECORD FOR THAT MONTH AND THE 174 BILLION OF MUNI BONDS ISSUED IN JANUARY WAS THE HIGHEST VOLUME EVER FOR THE FIRST MONTH OF THE YEAR ONE OF THE LARGEST ISSUES DUE TO BE PRICED THIS WEEK IS NEW YORK CITY'S APPROXIMATELY 750 MILLION OF GENERAL OBLIGATION REFUNDING BONDS MERRILL LYNCH & CO THE LEAD UNDERWRITER FOR THE ISSUE SAYS THE PRICING WILL PROBABLY OCCUR TOMORROW THOMAS D LAURICELLA AND CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9303290129 930329 WHO'S NEWS HAVERMANN IS NAMED KPMG'S CHAIRMAN OF GLOBAL PRACTICE NEW YORK KPMG THE ACCOUNTING AND CONSULTING FIRM NAMED HANS HAVERMANN CHAIRMAN OF ITS INTERNATIONAL PRACTICE JON MADONNA CHAIRMAN OF THE FIRM'S US PRACTICE BECOMES DEPUTY CHAIRMAN MR HAVERMANN 62 YEARS OLD IS SENIOR PARTNER OF KPMG'S GERMAN PRACTICE MR MADONNA 49 WAS ELECTED CHAIRMAN AND CHIEF EXECUTIVE OF KPMG PEAT MARWICK THE US PRACTICE IN 1990 ALSO ROSS WALKER 58 CHAIRMAN OF KPMG'S CANADIAN PRACTICE WAS NAMED AN INTERNATIONAL EXECUTIVE PARTNER THE APPOINTMENTS ARE EFFECTIVE OCT 1 MR HAVERMANN WILL SUCCEED JIM BUTLER 62 KPMG'S SENIOR PARTNER IN THE UK PRACTICE WHO WILL RETIRE AT THE END OF THE YEAR IN THE NEWLY CREATED POST OF DEPUTY CHAIRMAN MR MADONNA WILL OVERSEE THE INTERNATIONAL PRACTICE IN THE ASIA/PACIFIC REGION AND IN LATIN AMERICA 9303290128 930329 INTERNATIONAL FOR BOLIVIA DEBT TO BANKS IS ALMOST GONE BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL LA PAZ BOLIVIA BOLIVIA IS EXPECTED TO MAKE AN ANNOUNCEMENT TOMORROW THAT LATIN AMERICAN COUNTRIES HAVE BEEN DREAMING OF SINCE THE DEBT CRISIS BEGAN 11 YEARS AGO IT HAS ALL BUT ELIMINATED ITS COMMERCIAL DEBT AT A CEREMONY DURING A MEETING OF THE INTERAMERICAN DEVELOPMENT BANK IN HAMBURG GERMANY BOLIVIAN OFFICIALS AND CREDITOR BANK REPRESENTATIVES WILL SIGN DOCUMENTS RETIRING 170 MILLION OF BOLIVIA'S BANK DEBT THROUGH A BUYBACK AND CONVERSION PROGRAM THIS WILL LEAVE BOLIVIA OWING BANKS 96 MILLION A FIGURE THAT WOULD MAKE ANY OF LATIN AMERICAN'S BIGGEST DEBTORS BRAZIL ARGENTINA AND MEXICO GREEN WITH ENVY THE MOVE WILL REPORTEDLY MAKE BOLIVIA THE FIRST THIRD WORLD COUNTRY TO CLEAR THE DECKS WITH COMMERCIAL BANKS OUR EXTERNAL DEBT IN CONVENTIONAL TERMS HAS PRACTICALLY DISAPPEARED SAYS DEBT NEGOTIATOR JAIME DELGADILLO WE'RE OPENING NEW OPPORTUNITIES FOR PRIVATE FINANCING FOR A COUNTRY WHICH LESS THAN A DECADE AGO HAD AN ANNUALIZED INFLATION RATE OF 23500 AND WHICH STILL HAS THE LOWEST PERCAPITA INCOME IN SOUTH AMERICA THIS IS NO MEAN FEAT BUT EVEN AS THEY LAUD BOLIVIA'S EFFORTS TO CUT ITS DEBT MANY BANKERS AND ANALYSTS WARN IT'S TOO EARLY TO PROCLAIM THE END OF BOLIVIA'S DEBT CRISIS WHILE ELIMINATING ITS BANK DEBT AND SUCCESSFULLY REDUCING ITS BILATERAL DEBT BOLIVIA'S DEBTS TO MULTILATERAL ORGANIZATIONS HAVE BEEN RISING WITH TOTAL OUTSTANDING DEBT STILL AT A LOFTY 35 BILLION THOUGH A FAR CRY FROM BRAZIL'S DEBTS OF 114 BILLION BOLIVIA'S DEBT AMOUNTS TO ABOUT HALF ITS GROSS DOMESTIC PRODUCT WHILE BRAZIL'S IS ONLY ABOUT ONETHIRD MOREOVER BANKERS SAY THE LATEST DEBT REDUCTION IS AS MUCH AN ACKNOWLEDGMENT OF BOLIVIA'S INABILITY TO PAY BACK ITS DEBTS AS IT IS A TRIBUTE TO ITS INGENUITY IN FINDING SOLUTIONS TO ITS CRUSHING BURDEN INDEED ON THE ONE HAND THE DEBT RETIREMENT PACKAGE REWARDS BOLIVIA FOR ITS ECONOMIC ORTHODOXY AND INNOVATIVE REPAYMENT STRATEGY BY PIONEERING BOTH DEBTFORNATURE SWAPS AND DEBT BUYBACKS BOLIVIA HAS MANAGED TO VIRTUALLY WIPE OUT THE 740 MILLION IT OWED BANKS IN 1987 MORE REMARKABLE BOLIVIA HAS DONE SO WITHOUT SPENDING A CENT OF ITS OWN MONEY CLAIMING THAT ITS STRICT ADHERENCE FOR EIGHT YEARS TO ONE OF THE WORLD'S HARSHEST AUSTERITY PLANS DESERVES TO BE REWARDED BOLIVIA OBTAINED DONATIONS FROM A BROAD ARRAY OF GOVERNMENTS AND MULTILATERAL INSTITUTIONS TO RETIRE ITS DEBT LARGELY BY BUYING IT BACK AT 11 CENTS TO THE DOLLAR LET ME TELL YOU IT'S HARD TO GO AROUND RAISING MONEY FROM GOVERNMENTS TO PAY US BANKS SAYS RAMIRO ORTEGA A FORMER JUNIOR FINANCE MINISTER WHO WAS ACTIVE IN THE 1988 DEBT BUYBACK MY ARGUMENT WAS IT'S NOT THAT MUCH FOR YOU GUYS AND FOR US IT'S A TREMENDOUS BURDEN AND WE'RE DOING OUR BEST TO PUT OUR HOUSE IN ORDER' WHEN YOU'RE POOR YOU HAVE TO BE CREATIVE BOLIVIA IS RETIRING ITS DEBT BY OFFERING CREDITORS THREE OPTIONS A STRAIGHT BUYBACK AT 16 CENTS TO THE DOLLAR THUS OFFERING A FIVECENT PREMIUM TO BANKS WHO HELD OUT UNTIL NOW CONVERTING THE DEBTS INTO A 30YEAR BOND FULLY COLLATERALIZED BY US TREASURY BILLS OR A SWAP FOR SOCIAL AND ENVIRONMENTAL PROJECTS MOST OF WHICH WILL GO TO PROGRAMS TO HELP CHILDREN WHEN WE FIRST APPROACHED THE GOVERNMENT THERE WAS NO SUCH THING AS DEBTFORCHILDREN PROGRAMS SAYS PETER MCFARREN WHOSE QUIPUS CULTURAL FOUNDATION IS INVOLVED IN THE 33 MILLION DEBT SWAP I DON'T THINK ANYBODY IN THE WORLD HAS EVER BOUGHT THAT MUCH DEBT FOR CHILD SURVIVAL ACTIVITIES BUT THE FLIP SIDE IS THAT BANKS ACQUIESCED LARGELY BECAUSE THEY HAD NO HOPE OF EVER RECEIVING MORE THAN BOLIVIA IS OFFERING TODAY SIXTEEN CENTS IS BETTER THAN ZERO SAYS THE LA PAZ REPRESENTATIVE OF A MULTILATERAL LENDING ORGANIZATION THUS WHILE THEY SAY BOLIVIA'S ADHERENCE TO STRICT FISCAL DISCIPLINE BROUGHT IT GOODWILL FROM THE INTERNATIONAL COMMUNITY MANY BANKERS SAY BOLIVIA'S EXAMPLE ISN'T ONE TO BE EMULATED WRITING OFF DEBT IS NOTHING TO WRITE HOME ABOUT SAYS A TOP BOLIVIAN BANKER OTHERS ADD THAT BOLIVIA'S SOLUTIONS WERE ONLY ACCEPTABLE TO BANKERS BECAUSE ITS DEBTS WERE SMALL AND IT GENERATES LITTLE EXPORT INCOME AND CAN'T BE SEEN AS A PRECEDENT FOR OTHER LATIN DEBTORS 9303290127 930329 WHAT'S NEWS BUSINESS AND FINANCE NORTHWEST AIRLINES CANCELED A PLAN TO ENTER THREE OF RENO AIR'S MARKETS AND TO UNDERCUT ITS FARES AFTER THE CLINTON ADMINISTRATION QUESTIONED THE MOVE THE YOUNG DISCOUNT CARRIER CLAIMED NORTHWEST WAS ILLEGALLY TRYING TO THWART COMPETITION THE INTERVENTION BY THE GOVERNMENT SIGNALED THAT IT WILL CHALLENGE AIRLINE PRICING PERCEIVED TO BE PREDATORY NORTHWEST'S PILOTS AND THREE SMALL UNIONS PRESENTED A COUNTEROFFER TO THE CARRIER'S PROPOSAL FOR WAGE AND BENEFIT CONCESSIONS BUT MANAGEMENT IS LIKELY TO REJECT THE UNION PLAN BECAUSE IT INSISTS THAT THE COMPANY'S BANKS AGREE TO SIMULTANEOUS CONCESSIONS THE WHITE HOUSE AND CONSERVATIVE DEMOCRATS HOPE TO REACH A COMPROMISE THIS WEEK TO CLEAR THE WAY FOR ENACTMENT OF A 16 BILLIONPLUS ECONOMICSTIMULUS BILL STALLED IN THE SENATE THE CONSERVATIVES WANT TO DELAY SOME OF THE SPENDING UNTIL AFTER CLINTON'S DEFICITREDUCTION PLAN IS IMPLEMENTED RJR NABISCO NAMED ITS GENERAL COUNSEL LAWRENCE RICCIARDI AND ITS CHIEF FINANCIAL OFFICER KARL VON DER HEYDEN TO RUN THE COMPANY THEY SUCCEED LOUIS GERSTNER JR WHOM IBM HIRED TO BE CHAIRMAN AND CEO RJR'S POWERSHARING ARRANGEMENT IS WIDELY SEEN AS A TEMPORARY MEASURE IBM JAPAN'S PRETAX PROFIT SANK 74 LAST YEAR LARGELY BECAUSE OF WEAK ORDERS FOR MAINFRAME COMPUTERS BUT THE IBM UNIT INSISTS THAT THINGS WON'T GET MUCH WORSE CITING ITS SHIFT IN EMPHASIS TO SOFTWARE AND SERVICES BOND PRICES TUMBLED WHILE STOCKS AND THE DOLLAR DECLINED THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND FELL MORE THAN A POINT PUSHING ITS YIELD UP TO 694 THE DOW JONES INDUSTRIALS SLID 2134 POINTS TO 343998 BUT NASDAQ STOCKS INCHED HIGHER CORPORATE PROFITS SURGED 92 IN THE FOURTH QUARTER AFTER A 45 THIRDQUARTER DECLINE THAT LARGELY STEMMED FROM HURRICANES ANDREW AND INIKI THE ECONOMY GREW IN THE FOURTH QUARTER AT A 47 ANNUAL RATE THE HIGHEST IN FIVE YEARS FINAL FIGURES SHOWED FED POLICY MAKERS DECIDED UNANIMOUSLY AT THEIR MEETING IN EARLY FEBRUARY TO HOLD INTEREST RATES STEADY THE FED OFFICIALS EXPRESSED CONCERN ABOUT WEAKNESS IN THE MONEY SUPPLY CAMPBELL SOUP'S PEPPERIDGE FARM UNIT WON A RULING REVERSING MUCH OF A 14 MILLION OSHA FINE FOR REPETITIVE STRESS INJURIES AMONG WORKERS BUT OSHA CLAIMED VICTORY IN THE CASE VIACOM'S NICKELODEON CABLE TELEVISION CHANNEL CREATED A CONSUMER FOCUS GROUP OF 75 CHILDREN ON A COMPUTER NETWORK TO MONITOR THEIR REACTION TO PROGRAMMING AND TO GATHER NEW IDEAS HEINZ NAMED THE FOURTH CEO IN 18 MONTHS AT THE COMPANY'S SLOWGROWING OREIDA FROZEN POTATO UNIT MACHINE TOOL ORDERS JUMPED 615 IN FEBRUARY FROM THE MONTH BEFORE BUT ANALYSTS SAID THE OUTLOOK FOR TOOL MANUFACTURERS REMAINS MIXED US SHOE'S CHAIRMAN RESIGNED CITING DIFFERENCES WITH MANAGEMENT OVER HOW THE COMPANY IS BEING RUN ONTARIO HYDRO EXPECTS TO REPORT A LOSS OF ABOUT 800 MILLION THIS YEAR WHICH COULD EMPTY THE STATEOWNED UTILITY'S FUND USED TO STABILIZE RATES BOLIVIA PLANS TO ANNOUNCE TOMORROW THAT IT HAS PRACTICALLY ELIMINATED ITS COMMERCIAL DEBT IN AN APPARENT FIRST FOR A THIRD WORLD COUNTRY BONDS LEHMAN BROTHERS TREASURY INDEX 498476 OFF 4587 COMMODITIES OIL 2041 A BARREL UNCHANGED DOW JONES FUTURES INDEX 12780 OFF 093 SPOT INDEX 12591 OFF 083 DOLLAR 11650 YEN OFF 080 16335 OFF 00088 9303290126 930329 WHO'S NEWS ECOSCIENCE CORP ECOSCIENCE CORP WORCESTER MASS THE COMPANY NAMED THREE NEW DIRECTORS INCREASING BOARD MEMBERSHIP TO NINE THE COMPANY ELECTED LARRY M NOUVEL 49 YEARS OLD TO SUCCEED ROBERT FOSTER 53 WHO RESIGNED LAST MONTH TO PURSUE OTHER INTERESTS CLAUDINE SCHNEIDER 45 AND HEINZ K WEHNER 62 FILL NEWLY CREATED OPENINGS MR NOUVEL IS EXECUTIVE VICE PRESIDENT OF SPEER PRODUCTS INC AN AGRICULTURAL PRODUCTS COMPANY IN MEMPHIS TENN MS SCHNEIDER IS A FORMER US CONGRESSWOMAN FROM RHODE ISLAND MR WEHNER IS A FORMER EXECUTIVE VICE PRESIDENT OF MILES INC AN AGRICULTURAL PRODUCTS COMPANY IN KANSAS CITY MO ECOSCIENCE IS A DEVELOPER OF PESTCONTROL AND OTHER HORTICULTURAL PRODUCTS 9303290125 930329 PEPSICO CAPITAL SPENDING TO RISE PURCHASE NY PEPSICO INC SAID IT EXPECTS ITS 1993 CAPITAL SPENDING TO INCREASE ABOUT 13 TO ABOUT 17 BILLION FROM 15 BILLION IN 1992 PEPSICO MAKING THE DISCLOSURE IN ITS ANNUAL REPORT TO SHAREHOLDERS SAID THAT ABOUT HALF OF THIS YEAR'S CAPITAL SPENDING WOULD BE DIRECTED AT RESTAURANTS WHILE THE BALANCE WOULD BE EVENLY DIVIDED BETWEEN ITS BEVERAGE AND SNACKFOOD DIVISIONS ABOUT 30 OF THE CAPITALSPENDING BUDGET IS EARMARKED FOR INTERNATIONAL BUSINESSES ROUGHLY THE SAME AS IN 1992 PEPSICO SAID 9303290124 930329 MARKETING & MEDIA ADVERTISING US MAGAZINE TAKES GLITZY ROUTE IN CAMPAIGN TO WIN ADVERTISERS BY KEVIN GOLDMAN SINCE IT FIRST HIT THE NEWSSTANDS ON MAY 3 1977 WITH PAUL NEWMAN GRACING THE COVER US MAGAZINE HAS BEEN A POOR STEPCHILD IN THE CELEBRITYORIENTED MAGAZINE CATEGORY FOR MANY YEARS WHETHER IT WAS COMPARED WITH PEOPLE OR WORSE SUPERMARKET TABLOIDS US SEEMED ADRIFT WITHOUT A SOLID EDITORIAL VOICE NOW US IS GOING TO SEE WHETHER A NEW GLITZY ADVERTISING CAMPAIGN WILL GET MORE INDIVIDUALS IT IS PRUDENT TO AVOID THE USE OF THE WORD PEOPLE IN THIS PARTICULAR COLUMN ON MADISON AVENUE TO BUY MORE ADS IN THE MONTHLY MAGAZINE THE EFFORT COMES AS US IS ENJOYING A HEALTHY INCREASE IN AD PAGES UP 7 IN 1992 TO 4737 PAGES FROM 4435 PAGES IN 1991 ACCORDING TO THE PUBLISHERS INFORMATION BUREAU AT THE SAME TIME HOWEVER ITS CIRCULATION IS DOWN A TROUBLING 132 TO 11 MILLION COPIES FROM 1991 ACCORDING TO THE AUDIT BUREAU OF CIRCULATIONS US IS TRYING TO STRENGTHEN ITS POSITION AGAINST SUCH COMPETITORS AS ENTERTAINMENT WEEKLY TV GUIDE PEOPLE AND PREMIERE AMONG OTHERS THE PRINT CAMPAIGN IS CREATED BY WPP GROUP'S FALLON MCELLIGOTT THE MINNEAPOLISBASED AD AGENCY BEHIND THE HIGHLY SUCCESSFUL AND OFTENCOPIED PRINT CAMPAIGN FOR ROLLING STONE US'S SISTER PUBLICATION FROM STRAIGHT ARROW PUBLISHERS THE TWOPAGE ADS FOR ROLLING STONE DUBBED PERCEPTION/REALITY PAIRED SYMBOLS OF PEOPLE'S PERCEPTION OF THE ROCKANDROLL MAGAZINE WITH THOSE OF ITS NEW UPDATED REALITY THUS A PAIR OF GRANNY GLASSES WAS SHOWN OPPOSITE A PAIR OF PRICEY RAYBANS FOR US WITH ITS HEAVY DOSE OF MOVIE AND TELEVISION STARS FALLON MCELLIGOTT CREATED ANOTHER TWOPAGE SPLIT ON ONE PAGE IS A CELEBRITY SUCH AS DIRECTOR SPIKE LEE ON THE FACING PAGE A CAREFULLY SELECTED ACTUAL US READER WHO MIRRORS THE CELEB'S FASHION STATEMENT IN THE CASE OF MR LEE AND THE US READER IT IS A BASEBALL CAP WITH AN X ON IT MADE POPULAR FROM THE DIRECTOR'S MALCOLM X FILM ANOTHER PAGE FEATURES COUNTRY CROONER CLINT BLACK AND AN US READER NAMED MARIA PANTAGES THE COMMON THREAD COWBOY HATS A THIRD SPREAD IS MADONNA AND AN US READER WITH PLATINUMBLOND TRESSES WE WANTED TO GET ACROSS THE MESSAGE THAT THERE IS A CLOSE ASSOCIATION BETWEEN HOW CELEBRITIES LOOK AND HOW US READERS WANT TO EMULATE THOSE FASHION TRENDS SAYS KENT BROWNRIDGE STRAIGHT ARROW'S SENIOR VICE PRESIDENT AND GENERAL MANAGER THE ADS ARE BREAKING AT A TIME WHEN US IS AT LONG LAST PROFITABLE THE MAGAZINE HAD RACKED UP LOSSES OF MORE THAN 20 MILLION SINCE STRAIGHT ARROW TOOK FULL CONTROL FROM ITS FORMER PARTNER WARNER COMMUNICATIONS IN 1989 JANN S WENNER STRAIGHT ARROW'S CHAIRMAN CUT US TO A MONTHLY FROM TWICEAMONTH IN AUGUST 1991 THE NEW US AD CAMPAIGN ALSO COMES JUST FOLLOWING THE RESIGNATION OF ITS MOST RECENT EDITOR IAN BIRCH HIS SUCCESSOR JIM MEIGS A SENIOR EDITOR AT RIVAL ENTERTAINMENT WEEKLY THE US ADS WILL APPEAR BEGINNING TODAY IN ADVERTISING AGE AND LATER IN WOMEN'S WEAR DAILY AND INSIDE MEDIA THE ADS AREN'T EXPENSIVE TO PRODUCE BECAUSE THE STARS AREN'T PAID THE PHOTOGRAPHS HAVE PREVIOUSLY APPEARED IN THE MAGAZINE ONLY THE ORDINARY CITIZEN READ THE US READER IS PAID AND ONE CAN ONLY ASSUME THAT SHANNAH LAUMEISTER COMES FAR CHEAPER THAN MADONNA OTHER EXECUTIONS ARE UNDER CONSIDERATION SAYS KEVIN BERIGAN MANAGEMENT SUPERVISOR AT FALLON MCELLIGOTT AND NOT ALL MAY BE HUMAN CELEBRITIES SOME LIGHTER POSSIBILITIES INCLUDE USING ANIMATED CHARACTERS ONE OF THE SIMPSONS WOULD BE A NATURAL OR EVEN A FAMOUS ANIMAL EACH EXECUTION WILL APPEAR ONLY ONCE OR TWICE IN A STRATEGY SIMILAR TO THAT OF THE ROLLING STONE ADS TO DATE NO STAR HAS TURNED HUFFY AND SAID US COULDN'T USE HIS OR HER PICTURE IN THE CAMPAIGN US HAS GONE THROUGH INCREDIBLE EDITORIAL CHANGES SAYS MR BERIGAN AND MEDIA DIRECTORS AND ADVERTISERS WEREN'T AWARE OF THE CHANGES US FOR ONE HAS BEEN TRYING TO GET ITS MESSAGE ACROSS WE'RE LOOKING FOR A REASON FOR ADVERTISERS TO PLACE US ON THEIR AD SCHEDULES THE APRIL ISSUE WITH 96 PAGES FEATURES MODEL CINDY CRAWFORD ON THE COVER HO HUM AS WELL AS AN INTERVIEW WITH AEROSMITH MEMBER STEVEN TYLER THE MAGAZINE IS STILL CHOCKFULL OF SHOTS FEATURING CELEBS AT SWINGING SOIREES THERE ARE MORE WORDS IN THE MAGAZINE THAN BEFORE SAYS IRA WEINBLATT PRINT MEDIA DIRECTOR AT SAATCHI & SAATCHI ADVERTISING IT'S FOR PEOPLE WHO LIKE TO THINK THEY'RE READING A MAGAZINE STILL HE SAYS IT IS A FINE PLACE FOR ADVERTISERS STEVEN GREENBERGER VICE PRESIDENT AND DIRECTOR OF PRINT MEDIA AT GREY ADVERTISING SAYS THAT WHILE THE MAGAZINE IS TRYING TO BE MORE ATTRACTIVE TO READERS AND ADVERTISERS THERE IS STILL MUCH MORE TO DO NEEDS A LITTLE MORE TWEAKING ON THE OVERALL LOOK THERE IS STILL ROOM FOR IMPROVEMENT PERHAPS THE MOST CURIOUS FEATURE IN THE APRIL ISSUE HOWEVER IS AN ANNUAL SPREAD OF THE 10 MOST BEAUTIFUL WOMEN THE EDITORIAL TEXT ACCOMPANYING THE PHOTOS HAS A BOX ON THE BOTTOM THAT READS PRESENTED BY GILLETTE SENSOR FOR WOMEN TWO GILLETTE ADS THEN APPEAR OPPOSITE PICTURES OF ACTRESS TATUM O'NEAL AND ACTRESS DEBI MAZAR IT IS HIGHLY UNUSUAL FOR AN EDITORIAL FEATURE IN A MAGAZINE TO BE SPONSORED BY AN ADVERTISER GILLETTE COULDN'T BE REACHED FOR COMMENT AND A SPOKESMAN FOR STRAIGHT ARROW SAID EXECUTIVES COULDN'T BE REACHED FRIDAY TWO DAYS AFTER PUTTING ITS 28 MILLION ACCOUNT IN REVIEW AUDI OF AMERICA FIRED ITS INCUMBENT AGENCY DDB NEEDHAM SAYING THERE WAS LITTLE CHANCE NEEDHAM WOULD WIN THE COMPETITION NEEDHAM AN OMNICOM GROUP UNIT HAS BEEN AUDI'S ONLY AGENCY SINCE IT FIRST STARTED IMPORTING CARS TO THE US IN 1969 EXECUTIVES FROM BOTH COMPANIES MET FOR 90 MINUTES AT NEEDHAM'S NEW YORK OFFICE LATE THURSDAY ACCORDING TO PEOPLE WITH KNOWLEDGE OF THE SESSION IT QUICKLY BECAME APPARENT THAT AUDI DIDN'T WANT NEEDHAM'S PARTICIPATION IN THE REVIEW EVEN BEFORE NEEDHAM PRESENTED A PROPOSAL FOR THE BUSINESS AN AUDI SPOKESMAN SAID THE COMPANY A UNIT OF VOLKSWAGEN AG OF GERMANY HADN'T YET INVITED OTHER AGENCIES TO PARTICIPATE IN THE REVIEW WHICH IS EXPECTED TO LAST THREE TO FOUR MONTHS AYER THE OLDEST ADVERTISING AGENCY IN THE US AND ONE OF THE LAST OF THE INDEPENDENT GIANTS SAID A GROUP OF FOUR INVESTORS HAS COMPLETED AN EXPECTED CASH INFUSION THE AMOUNT WASN'T DISCLOSED THE INVESTORS INCLUDE RICHARD HUMPHREYS 47 YEARS OLD A FORMER JOINT CHIEF EXECUTIVE OFFICER OF SAATCHI & SAATCHI WORLDWIDE AND WY CHOI 38 WHO OWNS MEDIA PROPERTIES IN THE ASIA PACIFIC INCLUDING TV JOURNAL AYER IS KEEPING THE IDENTITIES OF THE REMAINING INVESTORS CLOAKED IN SECRECY EXCEPT TO SAY THEY ARE US CITIZENS WITH NO AD AGENCY EXPERIENCE WITH THE CASH INFUSION AYER SAYS IT IS NOW IN A POSITION TO BROADEN THE RANGE OF COMMUNICATIONS SERVICES FOR ITS CLIENTS ON A WORLDWIDE BASIS IT MAY ALSO EXPLORE UNSPECIFIED ACQUISITIONS MR HUMPHREYS WHO INSTIGATED THE DEAL ABOUT TWO MONTHS AGO WITH A CALL TO AYER CHAIRMAN AND CHIEF EXECUTIVE JERRY J SIANO WILL JOIN AYER'S EXECUTIVE COMMITTEE AND EXPLORE FOREIGN ACQUISITIONS THE MOVE COMES AFTER MERGER TALKS COLLAPSED IN EARLY FEBRUARY BETWEEN AYER AND PITTSBURGHBASED KETCHUM COMMUNICATIONS OVER WHAT WAS DESCRIBED AS PHILOSOPHICAL AND STRATEGIC DIFFERENCES AYER CLAIMED WORLDWIDE BILLINGS LAST YEAR OF 15 BILLION IN AN INTERVIEW MR SIANO SAID AYER SHAREHOLDERS HAVEN'T SOLD STOCK TO THE INVESTMENT GROUP RATHER NEW SHARES WERE ISSUED AYER REFUSED TO DISCLOSE HOW MANY NEW SHARES WERE ISSUED GEORGIA POWER CO AND ITS PARENT SOUTHERN CO SELECTED THE ATLANTA OFFICE OF OGILVY & MATHER AS THEIR NEW AD AGENCY OGILVY & MATHER BEAT MCCANN ERICKSON AND TUCKERWAYNE/LUCKIE THE OTHER TWO FINALISTS FOR THE ACCOUNT WHICH HAS TOTAL BILLINGS IN THE RANGE OF 6 MILLION TO 8 MILLION A YEAR ACCORDING TO SOUTHERN WHICH IS AN INVESTOROWNER UTILITY HOLDING COMPANY SOUTHERN AND GEORGIA POWER SAID THEY ARE CONTINUING TO LOOK FOR A MINORITYOWNED AGENCY TO COMPLETE THEIR AD TEAM DMB&B D'ARCY MASIUS BENTON & BOWLES NEW YORK SAID PETER ROSOW A SENIOR VICE PRESIDENT AND JOINT MANAGING DIRECTOR OF THE AGENCY'S NEW YORK OFFICE WAS NAMED WORLDWIDE ACCOUNT DIRECTOR OF THE AGENCY'S BURGER KING BUSINESS A NEW POSITION MR ROSOW 55 YEARS OLD ALSO WAS NAMED EXECUTIVE VICE PRESIDENT DIRECTOR OF MULTINATIONAL CLIENT SERVICES NORMAN SHERMAN WHO HAD OVERSEEN MUCH OF THE AGENCY'S PROCTER & GAMBLE BUSINESS SUCCEEDS MR ROSOW AS HEAD OF THE NEW YORK OPERATIONS MR SHERMAN IS 44 SAATCHI SAATCHI & SAATCHI ADVERTISING A UNIT OF SAATCHI & SAATCHI CO PROMOTED NADEEN PETERSON VICE CHAIRMAN AND EXECUTIVE CREATIVE DIRECTOR OF THE NEW YORK OFFICE TO THE POST OF WORLDWIDE CREATIVE DIRECTOR HARVEY HOFFENBERG VICE CHAIRMAN AND EXECUTIVE CREATIVE DIRECTOR WAS NAMED CHIEF CREATIVE OFFICER OF THE NEW YORK OFFICE 9303290123 930308 REVIEW & OUTLOOK EDITORIAL REALWORLD CHOICE THE EDUCATION ESTABLISHMENT BREATHED A SIGH OF RELIEF LAST YEAR AFTER IT DEFEATED A VOUCHER MEASURE IN COLORADO AND HELPED ELECT BILL CLINTON AN OPPONENT OF PRIVATE SCHOOL CHOICE SOME EDUCATION BUREAUCRATS DECLARED THE CHOICE MOVEMENT WAS STALLED THEY COULDN'T BE MORE WRONG EACH WEEK BRINGS EVIDENCE OF INTEREST IN SCHOOL CHOICE FROM SURPRISING SOURCES ALBERT SHANKER THE HEAD OF THE 800000STRONG AMERICAN FEDERATION OF TEACHERS RECENTLY SAID HE WOULD SUPPORT VOUCHERS FOR PRIVATE SCHOOLS IF THEY WERE LIMITED TO STUDENTS IN THE BOTTOM 10 OF THEIR CLASSES US SENATOR JOSEPH LIEBERMAN A DEMOCRAT IS BACKING A PILOT VOUCHER BILL IN CONNECTICUT THAT HAS STRONG SUPPORT IN THE STATE LEGISLATURE IN 20 CITIES PRIVATELY FUNDED VOUCHERS ARE BEING GIVEN OUT OR ARE PLANNED POLITICIANS WHO USED TO AVOID DISCUSSING CHOICE AS MUCH AS SOCIAL SECURITY REFORM ARE STARTING TO RECOGNIZE A POLITICAL WINNER IN MARYLAND DEMOCRATIC GOVERNOR WILLIAM DONALD SCHAEFER WANTS TO GIVE 2900 VOUCHERS TO 200 LOWINCOME STUDENTS FOR USE IN ANY PUBLIC OR PRIVATE SCHOOL TEACHERS UNIONS HAVE DECLARED WAR ON HIS MODEST IDEA THIS IS NOTHING MORE NOTHING LESS THAN THE LIFE OR DEATH OF THE PUBLIC SCHOOL SYSTEM SAYS JANE STERN OF THE MARYLAND TEACHERS ASSOCIATION WE GUESS THIS MEANS MS STERN AND HER COHORTS ARE WORRIED IT MIGHT WORK AWARE THAT POLITICAL OBSTACLES MAY DELAY CHOICE FOR YEARS IN MANY STATES ITS SUPPORTERS ARE SETTING UP PRIVATELY FINANCED PROGRAMS IN TRUTH ALL CHOICE PROGRAMS ARE PRIVATELY FUNDED SINCE THE VALUE OF ANY VOUCHER IS USUALLY LESS THAN HALF OF WHAT PARENTS ARE FORCED TO PAY TO SUPPORT THE PUBLIC SCHOOL SYSTEM THE FIRST EFFORT BEGAN IN 1991 IN INDIANAPOLIS WITH SUPPORT FROM THE GOLDEN RULE INSURANCE CO AND ELI LILLY PAT ROONEY THE CHAIRMAN OF GOLDEN RULE WAS INSPIRED AFTER PARENTS AT HIS MIXEDRACE CHURCH GAVE UP ON EFFORTS TO REFORM INDIANAPOLIS'S INNERCITY SCHOOLS TODAY 925 STUDENTS ATTEND PRIVATE SCHOOLS USING VOUCHERS AND THE PUBLIC SCHOOL SYSTEM HAS RESPONDED BY SCRAMBLING TO ADOPT ITS OWN CHOICE PROGRAM CALLED SELECTASCHOOL PARENTS ARE BEING EMPOWERED TO MAKE DECISIONS THAT ONCE WERE ONLY MADE BY NAMELESS FACELESS BUREAUCRATS SAYS WILLIAM CRAWFORD A BLACK STATE LEGISLATOR WHO IS SPONSORING A STATEWIDE VOUCHER BILL CHOICE PLANS ELSEWHERE INNOVATE IN OTHER WAYS NEW YORK'S STUDENT/SPONSOR PARTNERSHIP HAS PLACED POTENTIAL DROPOUTS IN PRIVATE SCHOOLS FOR SEVEN YEARS WITH GREAT SUCCESS IN ATLANTA LOWINCOME PARENTS ADMINISTER THE PROGRAM THEMSELVES IN MILWAUKEE THE BRADLEY FOUNDATION AND OTHERS ARE SENDING NEARLY 2000 KIDS TO PRIVATE SCHOOLS A STATEFUNDED PROGRAM PROVIDES VOUCHERS FOR AN ADDITIONAL 600 STUDENTS GOVERNOR TOMMY THOMPSON WANTS TO DOUBLE THAT NUMBER SAN ANTONIO'S VOUCHER PROGRAM HAS LED TO THE CREATION OF NEW PRIVATE SCHOOLS TO MEET THE DEMAND BUT THE MOST UNUSUAL CHOICE PROGRAM OF ALL ISN'T JUST AIMED AT PARENTS AND STUDENTS BUT ALSO AT TEACHERS THE SOUTH CAROLINA POLICY COUNCIL IS SETTING UP A NETWORK OF FREEDOM SCHOOLS IN THE STATE INSPIRED BY THE SCHOOLS THAT SUPPLEMENTED THE INFERIOR EDUCATION OFFERED BLACKS IN THE JIM CROW ERA THE FREEDOM SCHOOLS WILL OFFER SATURDAY CLASSES TO STUDENTS OF ALL RACES STUDENTS AT FREEDOM SCHOOLS WILL NO DOUBT BENEFIT FROM THE EXPERIENCE BUT SO WILL THE TEACHERS WE WANT TO CREATE AN ENVIRONMENT WHERE TEACHERS WILL RECOGNIZE THE BENEFITS OF CHOICE AND COME TO SUPPORT IT SAYS THE POLICY COUNCIL'S BILL MYERS EVERY SATURDAY THEY CAN ESCAPE BURDENSOME REGULATIONS AND CENTRALIZED POWER AND DISCOVER AGAIN HOW REWARDING TEACHING CAN BE SOUTH CAROLINA WHICH HAS THE LOWEST SAT SCORES OF ANY STATE IS A HOTBED OF INTEREST IN CHOICE A RECENT HERITAGE FOUNDATION CONFERENCE IN GREENVILLE DREW A STANDINGROOM ONLY CROWD THE FREEDOM SCHOOLS CONCEPT HAS DRAWN SUPPORT ACROSS THE POLITICAL SPECTRUM FROM STATE ACLU PRESIDENT KEVIN GRAY TO GOP SECRETARY OF STATE JIM MILES WHO WILL RUN FOR GOVERNOR NEXT YEAR ON A CHOICE PLATFORM NO ONE SHOULD UNDERESTIMATE THE POWER OF THOSE WHO WANT TO BLOCK THIS INNOVATION BUT THERE ARE SIGNS THAT SOME CHOICE CRITICS MAY BE STARTING TO FEEL ISOLATED AMERICA HAS NO MORE VIRULENT OPPONENT OF CHOICE THAN HERBERT GROVER WISCONSIN'S STATE SUPERINTENDENT OF SCHOOLS HAVING FAILED IN COUNTLESS EFFORTS TO SABOTAGE MILWAUKEE'S CHOICE PROGRAM HE APPEARED IN JANUARY AT THE ANNUAL CONVENTION OF STATE SCHOOL BOARD MEMBERS TO ASK THEM TO BACK INCREASES IN STATE SALES INCOME AND CORPORATE TAXES TO PAY FOR PUBLIC EDUCATION HE TOLD THEM SCHOOL BOARDS HAVE A DUTY TO ADVOCATE THE NEEDS OF CHILDREN NOT TAXPAYERS DELEGATES PROMPTLY VOTED AGAINST HIGHER TAXES CITING A DESIRE TO CONTROL SOARING COSTS INSTEAD MR GROVER IS RETIRING IN DISGUST A PUBLIC SCHOOL TEACHER WHO SUPPORTS VOUCHERS IS IN A RUNOFF ELECTION NEXT MONTH TO SUCCEED HIM THE PRESENCE OF EVEN A SMALL CHOICE PROGRAM CAN SOMETIMES WAKE UP THE SLUMBERING EDUCATIONAL ESTABLISHMENT SEE RELATED LETTER LETTERS TO THE EDITOR SCHOOL VOUCHER PROGRAM FOR FAILURES WSJ MARCH 26 1993 9303080068 9303290122 930329 WHO'S NEWS BRISTOLMYERS SQUIBB CO BRISTOLMYERS SQUIBB CO PRINCETON NJ THE PHARMACEUTCIAL AND HEALTHCARE PRODUCTS COMPANY GAVE TWO EXECUTIVES NEW RESPONSIBILITIES AS PART OF A CONTINUING MANAGEMENT REORGANIZATION SAMUEL L BARKER 50 YEARS OLD PRESIDENT OF THE US PHARMACEUTICAL DIVISION ASSUMED ADDITIONAL RESPONSIBILITIES FOR US MANAGED HEALTH CARE AND NATIONAL ACCOUNTS GOVERNMENT OPERATIONS AND GLOBAL STRATEGIC PRODUCT PLANNING FOR ANTIINFECTIVES DR BARKER ALSO JOINS THE COMPANY'S PHARMACEUTICAL GROUP OPERATING COMMITTEE ANDREW G BODNAR 45 WAS NAMED TO THE NEWLY CREATED POST OF PRESIDENT FOR SPECIALTY PHARMACEUTICALS OVERSEEING FOUR BUSINESSES THE BRISTOLMYERS SQUIBB ONCOLOGY DIVISION WESTWOODSQUIBB MEAD JOHNSON LABORATORIES AND SQUIBB DIAGNOSTICS HE WAS SENIOR VICE PRESIDENT FOR STRATEGIC MANAGEMENT 9303290121 930329 OTC FOCUS GYMBOREE STOCK OFFER IS LURING BUYERS EVEN THOUGH MANY HOLDERS WILL SELL BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GYMBOREE IS SCHEDULED TO HIT THE MARKET THIS WEEK AND THE INITIAL PUBLIC OFFERING IS EXPECTED TO BE HOT EVEN THOUGH IT SEEMS TO DEFY ONE OF THE CARDINAL RULES OF IPO INVESTING AT FIRST INVESTORS MIGHT BLANCH AT THE THOUGHT THAT CURRENT STOCKHOLDERS ARE SELLING 800000 OF THE 1925000 SHARES IN THE OFFERING OF GYMBOREE A RETAILER OF CHILDREN'S APPAREL BASED IN BURLINGAME CALIF BUT THE INSIDER SHARES ARE SPREAD AMONG SO MANY VENTURECAPITAL PARTNERS THAT IT DOESN'T REALLY MATTER IN THIS CASE SAYS LINDA KILLIAN A NEWISSUES ANALYST WITH THE RESEARCH AND MONEY MANAGEMENT FIRM RENAISSANCE CAPITAL CORP OF GREENWICH CONN AFTER THE OFFERING NEW INVESTORS WILL HOLD 46 OF THE STOCK ONE OF THE COMPANY'S BIGGEST SHAREHOLDERS US VENTURE PARTNERS OF MENLO PARK CALIF IS SELLING 165327 SHARES REDUCING ITS HOLDINGS IN THE COMPANY TO 231 FROM 274 ANOTHER HALF DOZEN VENTURE PARTNERS AND OFFICERS ARE REDUCING THEIR HOLDINGS ONLY ONE OR TWO PERCENTAGE POINTS MONEY MANAGERS ARE READY TO JUMP INTO THE NEW STOCK I HAVE TWO KIDS DECKED OUT IN GYMBOREE CLOTHES AND WE PLAN TO BUY IN THE OFFERING SAYS SCOTT SCHOELZEL MANAGER OF FOUNDERS ASSET MANAGMENT'S GROWTH FUND IN DENVER THERE'S A GYMBOREE STORE IN THE MALL ACROSS THE STREET FROM MY OFFICE AND EVERY TIME I WALK BY I CAN'T BELIEVE HOW THEY CAN PACK SO MANY KIDS MOMS AND STROLLERS IN THAT SMALL STORE THE GYMBOREE NAME IS OFTEN ASSOCIATED WITH ITS YOUNG CHILDREN'S PLAY PROGRAMS WHICH STARTED IN 1976 BUT THAT WAS ONLY THE BEGINNING FOR THE COMPANY WHICH HASN'T ANY LONGTERM DEBT GYMBOREE OPERATES A NATIONWIDE CHAIN OF 113 STORES PRIMARILY IN REGIONAL SHOPPING MALLS THERE ARE ALSO ABOUT 350 FRANCHISED CENTERS FOR ITS PARENTCHILD DEVELOPMENTAL PLAY PROGRAMS FOR INFANTS TO FIVEYEAROLDS ALTHOUGH THESE PLAY CENTERS CONTRIBUTE ONLY A VERY MINOR AMOUNT TO THE COMPANY'S REVENUE THEY ARE THE KEY TO ITS SUCCESS SAYS MS KILLIAN IT'S A STRONG BRAND NAME BUILT UP OVER MANY YEARS THE COMPANY HAS NOW MADE IT INTO A SUCCESSFULL RETAIL CONCEPT SHE SAYS MY SON USED TO BE IN THE GYMBOREE PROGRAM PEOPLE HAVE A GOOD FEELING ABOUT THE NAME AND THE BRAND HAPPY KIDS HELP MAKE FOR A FEELGOOD STOCK OFFERING IT'S A BRAND NAME IPO IT'S THE ULTIMATE PETER LYNCH TYPE OF STORY MR SCHOELZEL SAYS REFERRING TO THE STOCKPICKING STAR WHO FORMERLY RAN FIDELITY INVESTMENTS' MAGELLAN FUND INVESTORS BUY CLOTHES FOR THEIR KIDS THEY SEE IT THEY UNDERSTAND IT AND THEY LIKE THE PRODUCT THEY ALSO WANT THE STOCK IN A VERY COMPETITIVE RETAIL MARKET GYMBOREE'S BRIGHTLY COLORED CLOTHING IS ENJOYING A GOOD SHARE OF BUSINESS SAYS MR SCHOELZEL HE SAYS GAPKIDS A DIVISION OF GAP INC IS PROBABLY THE COMPANY'S BIGGEST COMPETITION IT'S HARD TO SEPARATE GAPKIDS RESULTS FROM THE WHOLE COMPANY GAP HE SAYS BUT GYMBOREE IS SPECIAL IN THE SENSE THAT IT DESIGNS FOR KIDS RATHER THAN SCALING DOWN ADULT CLOTHING TO 22 INCHES LIKE GAPKIDS DOES ANALYSTS ATTRIBUTE A LARGE PART OF GYMBOREE'S EARNINGS GROWTH TO DONALD COHN PRESIDENT AND CHIEF EXECUTIVE OFFICER WHO CAME TO THE COMPANY IN JUNE 1990 BEFORE HE ARRIVED GYMBOREE HAD A LOSS OF 14 CENTS A SHARE FOR THE YEAR ENDED JAN 28 1990 SINCE THEN EARNINGS HAVE LEAPED REACHING 63 CENTS A SHARE FOR THE MOST RECENT YEAR ENDED JAN 31 MORE THAN DOUBLE THE PREVIOUS YEAR'S EARNINGS DURING THE YEAR GYMBOREE OPENED 32 NEW STORES IN ITS PROSPECTUS THE IPO MARKETING DOCUMENT THE COMPANY SAYS IT PLANS TO OPEN 35 TO 40 STORES THIS FISCAL YEAR IF ALL GOES WELL WITH THE NEW STORES THE COMPANY COULD EARN 80 TO 85 CENTS A SHARE FOR THE CURRENT FISCAL YEAR ACCORDING TO WALL STREET ESTIMATES THE COMPANY PLANS TO OFFER SHARES PRICED AT AROUND 13 TO 15 THROUGH LEAD UNDERWRITER GOLDMAN SACHS THIS MEANS THE STOCK WOULD BE VALUED AT ABOUT 17 TO 18 TIMES CURRENTYEAR EARNINGS THIS TRADING MULTIPLE COULD QUICKLY BOUNCE TO SUPERHIGH LEVELS MONEY MANAGERS PREDICT THE OFFERING COULD BE PRICED ABOVE ITS EXPECTED RANGE AT PERHAPS 17 OR 18 A SHARE AND POP UP EVEN HIGHER DURING EARLY TRADING BUT IF THE STOCK HITS THE 20S INVESTORS SHOULD BE CAREFUL DON'T LET THE FUNLOVING PROSPECTUS FILLED WITH CUTE KIDS LURE YOU INTO PAYING FOR SHARES TRADING AT MORE THAN 25 TO 30 TIMES ESTIMATED EARNINGS MONEY MANAGERS SAY REALISTICALLY THE COMPANY IS GROWING AT A 25 TO 30 RATE ON A THREETO FIVEYEAR BASIS SAYS MR SCHOELZEL THIS THING COULD GET A CULTLIKE FOLLOWING IT COULD BE A 30TO35 STOCK A YEAR FROM NOW BUT I WOULDN'T BUY IT IN THE AFTERMARKET IF IT SHOOTS TO THE MOON OVERTHECOUNTER STOCKS INCHED UPWARD BUT RISING INTEREST RATES HINDERED GAINS THE NASDAQ COMPOSITE INDEX ROSE 053 OR 008 TO 68154 ADVANCING ISSUES OUTNUMBERED DECLINERS 1410 TO 1155 ON TOTAL VOLUME OF 2045 MILLION SHARES DOWN FROM THURSDAY'S 2193 MILLION MEDIC COMPUTER SYSTEMS PLUNGED 5 1/8 TO 6 3/4 ALEX BROWN & SONS ANALYST CATO CARPENTER DOWNGRADED HIS RATING ON THE STOCK TO NEUTRAL FROM BUY AND LOWERED HIS 1993 EARNINGS ESTIMATE TO 63 CENTS A SHARE FROM 82 CENTS BASED IN RALEIGH NC MEDIC COMPUTER DEVELOPS PHYSICIAN PRACTICEMANAGEMENT SYSTEMS ON THURSDAY THE COMPANY SAID FIRSTQUARTER EARNINGS WOULD BE SEVEN CENTS OR EIGHT CENTS A SHARE SIGNIFICANTLY BELOW ANALYSTS' EXPECTATIONS IMMUNEX JUMPED 1 3/4 TO 44 HAMBRECHT & QUIST RAISED ITS INVESTMENT RATING ON THE SEATTLEBASED BIOPHARMACEUTICAL COMPANY TO STRONG BUY FROM BUY SYNERGEN ROSE 1 5/8 TO 11 1/2 SOUNDVIEW FINANCIAL GROUP ANALYST PAULA SZOKA INITIATED COVERAGE OF THE BOULDER COLO COMPANY WITH SHORTTERM HOLD AND LONGTERM BUY RATINGS SAYING THE STOCK HAS BEEN OVERSOLD IN REACTION TO THE DISAPPOINTING RESULTS OF THE PHASE III CLINICAL TRIAL DATA FOR ITS LEAD PRODUCT ANTRIL THE DAY'S SECOND MOST ACTIVE ISSUE GILAT SATELLITE NETWORKS POPPED UP 2 5/8 TO 14 5/8 ON ITS FIRST TRADING DAY THE STOCK WAS PRICED AT 12 THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO THE TEL AVIV ISRAELBASED COMPANY MAKES SATELLITE EARTH STATIONS HUB EQUIPMENT AND RELATED COMPUTER SOFTWARE PRODUCTS 9303290120 930329 NYNEX CORP IS SET BACK IN WHISTLEBLOWER CASE NEW YORK AN ADMINISTRATIVE LAW JUDGE FOUND NYNEX CORP RETALIATED AGAINST AN EMPLOYEE FOR TESTIFYING IN A SEXDISCRIMINATION CASE AND RECOMMENDED THE WORKER BE REHIRED AND GIVEN 50000 IN DAMAGES AND THREE MONTHS' BACK PAY THE FORMER EMPLOYEE TOBIAS F SQUITIERI WAS A DISTRICT MANAGER FOR NYNEX'S PURCHASING UNIT UNTIL HE WAS DISMISSED IN 1989 AFTER TESTIFYING ON BEHALF OF ANOTHER NYNEX WORKER IN A SEXDISCRIMINATION CASE MR SQUITIERI WHO HAS ALSO PLAYED A ROLE IN STATE INVESTIGATIONS OF NYNEX'S PURCHASING UNIT COULDN'T BE REACHED FOR COMMENT A NYNEX SPOKESWOMAN SAID THE COMPANY HAS UNTIL MIDAPRIL TO FILE OBJECTIONS AND IS WEIGHING ITS OPTIONS INCLUDING WHETHER TO APPEAL THE COMPANY MAINTAINS MR SQUITIERI VIOLATED ITS POLICY BARRING EMPLOYEES FROM DISCLOSING CONFIDENTIAL DOCUMENTS WITHOUT AUTHORIZATION THE JUDGE FOR NEW YORK STATE'S DIVISION OF HUMAN RIGHTS ALSO RECOMMENDED THAT NYNEX SEND MEMOS TO ALL MANAGERS AND OFFICERS NOTIFYING THEM OF A COMPANY POLICY PROHIBITING RETALIATION AGAINST EMPLOYEES 9303290119 930329 RJR APPOINTS 2 AS COCEOS AND CHAIRMEN BY NAMING VON DER HEYDEN RICCIARDI FIRM SEEKS TO ALLAY HOLDERS' FEARS BY EBEN SHAPIRO AND GEORGE ANDERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BY NAMING ITS TOP INHOUSE LAWYER AND ITS FINANCE CHIEF TO SHARE THE COMPANY'S HIGHEST JOBS RJR NABISCO HOLDINGS CORP IS TRYING TO SEND A MESSAGE OF CONTINUITY TO ANXIOUS INVESTORS THE APPOINTMENT OF THE GENERAL COUNSEL LAWRENCE R RICCIARDI AND THE CHIEF FINANCIAL OFFICER KARL VON DER HEYDEN AS RJR'S COCHAIRMEN AND COCHIEF EXECUTIVES CAME QUICKLY FRIDAY MORNING IT WAS ANNOUNCED BARELY 90 MINUTES AFTER INTERNATIONAL BUSINESS MACHINES CORP CONFIRMED IT WAS HIRING LOUIS V GERSTNER JR WHO HAS BEEN RJR'S CHAIRMAN AND CEO SINCE 1989 TO BE ITS NEXT CHIEF EXECUTIVE AND CHAIRMAN BUT RJR'S UNUSUAL POWERSHARING ARRANGEMENT IS WIDELY SEEN AS ONLY A PROVISIONAL STEP INVESTMENT BANKERS AND PEOPLE CLOSE TO RJR'S BOARD SAY A GREATER SEPARATION OR EVEN AN OUTRIGHT SPLIT BETWEEN RJR'S TOBACCO AND FOOD UNITS IS POSSIBLE IN AN INTERVIEW RJR'S NEW TOP MANAGERS TRIED TO ALLAY SPECULATION ABOUT A BREAKUP OF THE COMPANY SPLITTING THE TOP POST ISN'T AN INTERIM STEP THE 52YEAROLD MR RICCIARDI SAID IT SHOULDN'T BE VIEWED AS A STEPPING STONE TO SOME GRAND STRATEGY MR RICCIARDI SAID HE AND MR VON DER HEYDEN 56 WILL BE DEEPLY INVOLVED IN RJR'S PLAN TO CREATE A SEPARATE CLASS OF STOCK FOR NABISCO AND RAISE 16 BILLION MR RICCIARDI SAID HE WOULD TAKE MR GERSTNER'S PLACE AT AN IMPORTANT MEETING TOMORROW ON THE NABISCO DEAL WITH INVESTMENT BANKERS THE PAIR SAID MR GERSTNER'S DEPARTURE SHOULDN'T COMPLICATE THE OFFERING MR VON DER HEYDEN ACKNOWLEDGED THAT LOU WOULD HAVE ADDED CONSIDERABLE CLOUT BUT ADDED SINCE THE FUNDAMENTALS ARE IN PLACE WE CAN COVER THE THING ADEQUATELY MESSRS RICCIARDI AND VON DER HEYDEN ARE VIEWED AS CAPABLE MANAGERS WHO PLAYED A KEY ROLE IN CUTTING RJR'S 296 BILLION DEBT LOAD IN HALF AND RESTORING THE COMPANY TO INVESTMENT GRADE FOOTING EXPLAINING THEIR DIVISION OF DUTIES MR VON DER HEYDEN SAID HE WILL FOCUS ON THE TOBACCO AND FOOD OPERATIONS WHILE MR RICCIARDI WILL DEVOTE HIS TIME TO CORPORATE AND STAFF FUNCTIONS MR VON DER HEYDEN IS GOOD AT WORKING WITH OPERATING MANAGERS AND GETTING THEIR COSTS IN LINE SAID HENRY KRAVIS A FOUNDING PARTNER OF KOHLBERG KRAVIS ROBERTS & CO WHICH CONTROLS RJR HE'S VERY MUCH OF A CASH FLOW MANAGER THAT'S WHAT WE NEED IT WAS THE BOARD'S IDEA THAT THE TWO MEN SPLIT THE JOB ACCORDING TO SEVERAL RJR DIRECTORS MR KRAVIS SAID HE THOUGHT THE PERSONAL CHEMISTRY BETWEEN RJR'S TWO NEW HEADS WAS EXCELLENT A CONDITION THAT HE TERMED CRUCIAL TO MAKING THE JOINT APPOINTMENT A SUCCESS MR KRAVIS ADDED THAT MR RICCIARDI IS AN EXTREMELY GOOD ADMINISTRATIVE MANAGER WHO WORKED VERY CLOSELY WITH LOU GERSTNER THE PAST FOUR YEARS AS MR GERSTNER'S PLANS TO LEAVE RJR BECAME CLEAR LAST WEEK MR KRAVIS SAID RJR'S BOARD CONSIDERED FOUR CANDIDATES FOR THE TOP JOB INCLUDING JOHN GREENIAUS HEAD OF NABISCO AND JAMES JOHNSTON HEAD OF THE RJ REYNOLDS US TOBACCO UNIT BUT RJR DIRECTORS FELT THAT BOTH THOSE EXECUTIVES WERE TOO BADLY NEEDED AT THEIR OPERATING UNITS FOR HIS PART MR VON DER HEYDEN SKETCHED A SOMBER VIEW OF RJR'S MAIN BUSINESSES WE'RE WORKING VERY HARD TO SUSTAIN PROFITS IN OUR DOMESTIC TOBACCO BUSINESS IN THE FACE OF DECLINING CONSUMPTION AND POSSIBLY ADVERSE TAX INITIATIVES HE SAID IN FOOD HE SAID RJR IS BANKING MOSTLY ON SALES GROWTH INDICATING THAT EFFORTS TO IMPROVE PROFIT MARGINS HAVE LARGELY RUN THEIR COURSE RJR'S LEADING GROWTH OPPORTUNITIES MR VON DER HEYDEN SAID ARE IN INTERNATIONAL FOOD AND TOBACCO DESPITE THEIR PROWESS IN LAW AND FINANCE NEITHER OF RJR'S NEW CEOS HAS DIRECT EXPERIENCE RUNNING A PACKAGED GOODS GIANT FURTHERING THE VIEW THAT THEIR APPOINTMENT IS A STOPGAP MEASURE IT IS PROBABLY THE BEST TRANSITION DEVICE THEY COULD COME UP WITH GIVEN THE SURPRISING DEPARTURE OF LOU GERSTNER SAID JAY CONGER A PROFESSOR OF MANAGEMENT AT HARVARD BUSINESS SCHOOL IN A YEAR OR TWO THERE WILL BE ONE CHAIRMAN MR CONGER PREDICTED THERE IS SOME RISK SAID DEBORAH CORNWALL MANAGING VICE PRESIDENT OF KORN FERRY ORGANIZATIONAL CONSULTANTS IN BOSTON NEITHER ONE HAS EXTENSIVE OPERATING EXPERIENCE IT WOULD SUGGEST IT IS A TEMPORARY MOVE SHE SAID THE PRESENCE OF TWO INDIVIDUALS SUGGESTS THAT SPLITTING THE COMPANY IN TWO IS A DISTINCT POSSIBILITY DESPITE THE UNUSUAL MANAGEMENT STRUCTURE SOME BIG RJR SHAREHOLDERS HAILED THE APPOINTMENTS IT'S A VERY STRONG POSITIVE SAID LARRY WEISSMAN A PORTFOLIO MANAGER AT COLLEGE RETIREMENT EQUITY FUND I WAS HOPING THAT THEY WOULD TAKE SOMEBODY FROM THE INSIDE AND I'M GLAD THEY DID IN NEW YORK STOCK EXCHANGE TRADING FRIDAY RJR CLOSED UNCHANGED AT 8 TO EASE THE STING OF BEING LEFT OUT OF THE CHIEF EXECUTIVE SUITE RJR ON FRIDAY NAMED MR GREENIAUS CHAIRMAN AND CHIEF EXECUTIVE OF NABISCO HE HAD BEEN PRESIDENT MR RICCIARDI ALSO INDICATED THAT MESSRS GREENIAUS AND JOHNSTON WOULD GET ADDITIONAL FINANCIAL INCENTIVES TO STAY IN THEIR CURRENT POSTS MR VON DER HEYDEN HAS OVERSEEN RJR'S COMPLEX DELEVERAGING EARNING A REPUTATION ON WALL STREET AS A CUNNING FINANCIER HE'S A GOOD POKER PLAYER SAID ANTHONY O'REILLY CHAIRMAN OF HJ HEINZ CO WHERE MR VON DER HEYDEN PREVIOUSLY SERVED AS CHIEF FINANCIAL OFFICER YOU CAN HARDLY BE TOO SECRETIVE IF YOU ARE A GOOD POKER PLAYER MR O'REILLY ADDED MR VON DER HEYDEN IS NOT DEVOID OF LINE EXPERIENCE WHILE A YOUNG EXECUTIVE AT PEPSICO INC THE NATIVE OF BERLIN WAS IN CHARGE OF 40 PEPSI BOTTLING PLANTS DONALD M KENDALL FORMER CHAIRMAN OF PEPSICO SAID HE HAS VERY GOOD OPERATING EXPERIENCE OFFSETTING THE SKEPTICISM ABOUT THE LONGTERM VIABILITY OF THE DUAL APPOINTMENT IS THE CLOSE WORKING RELATIONSHIP BETWEEN MR RICCIARDI AND MR VON DER HEYDEN WHO LIVE MINUTES APART IN THE SAME SUBURB PHYSICALLY HOWEVER THE MEN ARE A STUDY IN CONTRASTS THE TALL SILVERHAIRED MR VON DER HEYDEN IS AN ELEGANT DRESSER AND HAS AN ARISTOCRATIC BEARING MR RICCIARDI HAS A MORE RUMPLED PROFESSORIAL DEMEANOR APPEARING AT A RECENT INTERVIEW IN CARDIGAN SWEATER WITH PATCHED ELBOWS ALREADY THE PAIR HAVE AVOIDED ONE POSSIBLE POINT OF CONTENTION BOTH EXECUTIVES CHOSE TO REMAIN IN THEIR OWN OFFICES RATHER THAN VIE FOR MR GERSTNER'S RECENTLY VACATED DIGS SAID MR RICCIARDI NEITHER ONE OF US COULD STOMACH ANOTHER MOVE 9303290118 930329 LETTERS TO THE EDITOR EARLY DETECTION OF PROSTATE CANCER YOUR FEB 16 ARTICLE BLOOD TEST FOR PROSTATE CANCER IS RAISING ISSUES OF RELIABILITY DRUGINDUSTRY ROLE RAISES SOME ISSUES THAT ARE CONTROVERSIAL NAMELY THE ULTIMATE BENEFIT OF PROSTATESPECIFIC ANTIGEN PSA IN THE EARLY DETECTION OF PROSTATE CANCER OTHER ISSUES IN THE ARTICLE ALSO MAY BE DEEMED CONTROVERSIAL INCLUDING THE ROLE OF THE HEALTH CARE INDUSTRY IN POSTGRADUATE MEDICAL EDUCATION HOWEVER WHAT SHOULD NOT BE CONTROVERSIAL IS THE ROLE OF DR GERALD P MURPHY IN THE ADVOCACY OF THE USE OF PSA AND HIS IMPLIED CONFLICT OF INTEREST AS SENIOR VICE PRESIDENT MEDICAL AFFAIRS OF THE AMERICAN CANCER SOCIETY FOR MANY YEARS DR MURPHY HAS BEEN A RECOGNIZED EXPERT IN UROLOGIC CANCER AND WAS DIRECTOR OF THE NATIONAL PROSTATE CANCER PROJECT FROM 1972 TO 1985 DIRECTOR OF THE ROSWELL PARK CANCER INSTITUTE AND WAS ASSOCIATED WITH THE DISCOVERY OF PSA WORK THAT WAS FUNDED BY THE NATIONAL CANCER INSTITUTE HIS OPINIONS AND ADVOCACY OF PSA SHOULD BE NOTED FOR WHAT THEY ARE AND NOT CLOUDED BECAUSE OF INDUSTRY AND AMERICAN CANCER SOCIETY SPONSORSHIP IN ADDITION TO SPONSORSHIP BY THE AMERICAN UROLOGICAL ASSOCIATION AND THE EUROPEAN ORGANIZATION FOR RESEARCH IN THE TREATMENT OF CANCER OF AN OCTOBER 1991 MEDICAL MEETING WHERE MEDICAL COMPANIES PROVIDED GRANTS TOTALING 80000 TO COVER HOTEL COSTS OF THE FOURDAY MEETING THE SPONSORING ORGANIZATIONS PROVIDED TRAVEL COSTS FOR ITS PARTICIPANTS SUCH GRANTS ARE NOT UNUSUAL AND SHOULD NOT IMPLY THAT THE PARTICIPANTS' PRESENTATIONS WERE TAINTED BY THE SPONSORING ORGANIZATIONS ONLY AFTER EXTENSIVE RESEARCH INCLUDING A REVIEW OF THE WORLDWIDE LITERATURE A MAJOR PROJECT ON THE SUBJECT OF PSA BY THE AMERICAN CANCER SOCIETY A RETROSPECTIVE REVIEW OF TUMOR REGISTRIES AND DATA FROM AMERICAN COLLEGE OF SURGEONS AND INQUIRY INTO THE SAFETY COST AND REASONABLE BENEFIT OF PSA DID THE BOARD OF DIRECTORS OF THE AMERICAN CANCER SOCIETY ISSUE NEW GUIDELINES FOR EARLY DETECTION OF PROSTATE CANCER THE NEW GUIDELINES STATE ANNUAL DIGITAL RECTAL EXAMINATION AND PSA SHOULD BE PERFORMED ON MEN 50 YEARS OF AGE AND OLDER IF EITHER IS ABNORMAL FURTHER EVALUATION SHOULD BE CONSIDERED THE SOCIETY ADVISES THAT MEN IN HIGHRISK GROUPS SUCH AS AFRICANAMERICANS OR THOSE WITH A STRONG FAMILIAL PREDISPOSITION MAY START AT A YOUNGER AGE DR MURPHY AND THE AMERICAN CANCER SOCIETY ARE NOT ALONE IN ADVOCATING PSA FOR THE EARLY DETECTION OF PROSTATE CANCER THE RECENTLY ISSUED GUIDELINES OF THE AMERICAN UROLOGICAL ASSOCIATION ADD FOR PATIENTS WITH A FAMILY HISTORY OF PROSTATE CANCER THIS EVALUATION SHOULD BE STARTED AT THE AGE OF 40 YEARS THE INCREASED RATE OF EARLY DETECTION AND POTENTIAL VALUE OF SCREENING MEN HAS SIGNIFICANCE FOR THE MORE THAN 24 MILLION AMERICAN MEN OLDER THAN 50 30 OF WHOM HAVE PROSTATE CANCER OF WHICH 10 WILL DEVELOP LETHAL PROSTATE CANCER IT IS INCUMBENT UPON UROLOGISTS THAT RISK FACTORS BE IDENTIFIED TO ALLOW US TO DIRECT OUR ENERGIES IN A COSTEFFICIENT AND EFFECTIVE RISKVS BENEFIT MANNER USING THESE EARLY DETECTION TECHNIQUES THE SUBSET OF MEN WHO HAVE THE HIGHEST RISK OF LETHAL PROSTATE CANCER HAS THE FOLLOWING FACTORS THOSE WHO ARE AGE 65 OR OVER THOSE WITH A FAMILY HISTORY OF PROSTATE CANCER THOSE WITH LOWER URINARY TRACK SYMPTOMS AND AFRICANAMERICANS THESE MEN SHOULD BE SCREENED AGGRESSIVELY BECAUSE WE MAY EXPECT A YIELD OF MORE THAN 70 SENSITIVITY FOR THE DIAGNOSIS OF PROSTATE CANCER NEARLY EQUAL TO THAT OF MAMMOGRAPHY IN THESE GROUPS TESTS ARE DIAGNOSING MORE YOUNGER MEN WITH EARLY PROSTATECONFINED CANCER ABOUT 80 OF WHOM HAVE CURABLE DISEASE DR WHITEHEAD IS AN UROLOGIST A DIRECTOR OF THE PROSTATE HEALTH PROGRAM OF NEW YORK AND A DIRECTOR OF THE NEW YORK CITY DIVISION OF THE AMERICAN CANCER SOCIETY THE TWO NEW STUDIES MENTIONED IN YOUR FEB 17 ARTICLE VASECTOMIES MIGHT INCREASE CANCER RISK CONFIRM MY WARNINGS OVER THE PAST 25 YEARS ABOUT CANCER AND OTHER COMPLICATIONS FROM THIS SIMPLE OPERATION I HAVE STRESSED REPEATEDLY THAT NO OTHER OPERATION PERFORMED ON HUMANS EVEN APPROACHES THE DEGREE AND DURATION OF THE MULTIPLE IMMUNOLOGIC RESPONSES IN VASECTOMIZED MEN MY OWN DATABASE INCLUDES SCORES OF PATIENTS MOST IN THEIR 20S TO 40S WHO DEVELOPED SERIOUS AND OTHERWISE UNEXPLAINABLE DISORDERS THAT HAD NOT EXISTED PRIOR TO VASECTOMY THEY INCLUDE THROMBOPHLEBITIS PULMONARY EMBOLISM SEVERE INFECTIONS ALLERGIES VARIOUS SKIN ERUPTIONS METABOLIC ABNORMALITIES MULTIPLE SCLEROSIS SIX PATIENTS AND A STRIKING MIGRATORY ARTHROPATHY OTHERS ALSO HAVE SUGGESTED A LINK BETWEEN VASECTOMY AND KIDNEY STONES ARTHRITIS AND CONNECTIVE TISSUE DISORDERS AS WELL AS CANCER 9303290117 930329 WHO'S NEWS MCDONNELL CHIEF RESIGNS FROM NOMINATING PANEL ST LOUIS JOHN MCDONNELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AIRCRAFT MAKER AND DEFENSE CONTRACTOR MCDONNELL DOUGLAS CORP HAS STEPPED DOWN FROM THE BOARD'S NOMINATING COMMITTEE IN THE FACE OF PRESSURE FROM A LARGE INSTITUTIONAL INVESTOR IN NOVEMBER THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM FILED A PROPOSAL FOR A RESOLUTION THAT WOULD REQUIRE A COMMITTEE OF INDEPENDENT OUTSIDE DIRECTORS TO NOMINATE NEW BOARD MEMBERS THE 21 BILLION PENSION FUND HAS TAKEN AN ACTIVIST ROLE IN CORPORATE GOVERNANCE REFORM AT DOZENS OF COMPANIES A SPOKESWOMAN FOR THE ST LOUIS COMPANY SAID MR MCDONNELL RESIGNED FROM THE FOURMEMBER NOMINATING COMMITTEE IN JANUARY AND NO SUCCESSOR HAS BEEN NAMED THE THREE CURRENT NOMINATING COMMITTEE MEMBERS ARE ALL OUTSIDE DIRECTORS THE RESOLUTION WILL BE PRESENTED TO SHAREHOLDERS AT THE COMPANY'S ANNUAL MEETING SCHEDULED FOR APRIL 30 IN ITS PROXY STATEMENT WHICH HAS NOT YET BEEN MAILED TO SHAREHOLDERS THE COMPANY WILL RECOMMEND THAT SHAREHOLDERS VOTE AGAINST THE PROPOSAL THE SPOKESWOMAN SAID A SPOKESWOMAN FOR THE PENSION FUND DID NOT RETURN A TELEPHONE CALL SEEKING COMMENT 9303290116 930329 ONTARIO HYDRO SEES 1993 LOSS OF 8036 MILLION RESTRUCTURING COSTS CITED DEFICIT COULD WIPE OUT FUND TO AID CUSTOMERS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ONTARIO HYDRO EXPECTS TO REPORT A LOSS OF ABOUT ONE BILLION CANADIAN DOLLARS US8036 MILLION THIS YEAR AS A RESULT OF ITS EFFORTS TO RESTRUCTURE ITS OPERATIONS AND FINANCES THE LOSS WOULD BE THE FIRST IN NEARLY 20 YEARS HYDRO OFFICIALS SAID AND COULD RESULT IN THE VIRTUAL ELIMINATION OF THE UTILITY'S RATE STABILIZATION FUND AIMED AT SHIELDING CONSUMERS FROM HEFTY RATE INCREASES IN TOUGH TIMES THE STATEOWNED UTILITY ONE OF THE LARGEST IN NORTH AMERICA SAID IT EXPECTS ITS ELECTRICITY GENERATING AND TRANSMISSION OPERATIONS TO SHOW A PROFIT FOR THE YEAR DESPITE THE CONTINUING IMPACT OF THE RECESSION IN ONTARIO BUT THE C500 MILLION COST OF DROPPING 4500 EMPLOYEES FROM ITS PAYROLL ON TOP OF OTHER WRITEDOWNS WILL PUT HYDRO'S RESULTS IN THE RED ALLAN KUPCIS THE UTILITY'S PRESIDENT CONFIRMED THE ESTIMATED LOSS A FIGURE CONTAINED IN INTERNAL HYDRO DOCUMENTS BUT HE DESCRIBED THE C1 BILLION FIGURE AS A PRELIMINARY ONE ACCORDING TO THE HYDRO DOCUMENTS THE UTILITY HAD EXPECTED TO POST A PROFIT OF C261 MILLION THIS YEAR BUT THE RESTRUCTURING CHARGES WILL COME ON TOP OF LOWERTHANFORECAST RESULTS IN THE FIRST TWO MONTHS OF THE YEAR AS DEMAND FOR ELECTRICITY REMAINS SLUGGISH ENERGY CONSUMPTION FELL 26 ON A WEATHERADJUSTED BASIS IN JANUARY AND FEBRUARY HYDRO DOCUMENTS SHOW WHILE THE UTILITY'S NET INCOME FELL TO C375 MILLION FROM C398 MILLION A YEAR EARLIER HYDRO HAD HOPED TO SEE NET INCOME OF C391 MILLION FOR THE FIRST TWO MONTHS OF 1993 FOR THE 11 MONTHS ENDED NOV 30 1992 HYDRO DOCUMENTS SHOW THE UTILITY'S NET INCOME REACHED ABOUT C468 MILLION OFFICIAL RESULTS FOR THE FULL YEAR AREN'T AVAILABLE UNTIL NEXT MONTH IN 1991 HYDRO REPORTED A PROFIT OF C204 MILLION IF THE LOSS DOES REACH C1 BILLION HYDRO LIKELY WILL HAVE TO WITHDRAW ABOUT C156 BILLION FROM ITS RATE STABILIZATION FUND TO MEET DEBTRETIREMENT OBLIGATIONS UNDER TERMS OF THE ONTARIO LEGISLATION WHICH CREATED IT THIS WOULD VIRTUALLY WIPE OUT THE C164 BILLION FUND DESIGNED TO ELIMINATE THE NEED FOR LARGE RATE INCREASES IN YEARS WHEN REVENUES START TO DECLINE THE FUND WHICH CONTAINED C22 BILLION IN 1989 HAS BEEN DRAWN AGAINST IN RECENT YEARS AS COSTS SOARED AND REVENUE FELL HYDRO NEEDS TO BE MORE AGGRESSIVE IN BOTH CUTTING COSTS AND RAISING REVENUES SAID LARRY SOLOMON AN ANALYST AT ENERGY PROBE A TORONTO ENVIRONMENTAL LOBBY GROUP THEY COULD DISCONTINUE UNECONOMIC PROGRAMS SUCH AS THEIR CONSERVATION EFFORTS OR LOOK AT SELLING SOME ASSETS MR SOLOMON AND ENERGY PROBE ARE CALLING FOR THE PRIVATIZATION OF MUCH OF ONTARIO HYDRO A MOVE WHICH MR KUPCIS SAYS WILL BE DEBATED BY BOTH THE UTILITY AND THE PUBLIC IN THE MONTHS TO COME NEXT MONTH THE UTILITY'S BOARD WILL REVIEW A RANGE OF RESTRUCTURING OPTIONS WHICH INCLUDE BREAKING IT INTO THREE OR FOUR AUTONOMOUS DIVISIONS SUCH A MOVE WOULD MAKE HYDRO'S OPERATIONS MORE TRANSPARENT AND EASIER TO UNDERSTAND MR KUPCIS SAID IT WOULD ALLOW PEOPLE TO DETERMINE WHETHER THESE ARE ATTRACTIVE ASSETS FOR SALE ULTIMATELY ANY DECISION TO PRIVATIZE THE UTILITY WOULD BE MADE BY THE ONTARIO GOVERNMENT MR KUPCIS ADDED IN AN EFFORT TO COME TO GRIPS WITH ITS C35 BILLION DEBT RISING COSTS AND FALLING DEMAND HYDRO EARLIER THIS MONTH ANNOUNCED PLANS TO SLASH CAPITAL SPENDING AND EMPLOYMENT WHILE CUTTING DEBT IT PROMISED NOT TO RAISE ELECTRICITY RATES NEXT YEAR AFTER INCREASES AVERAGING 94 IN EACH OF THE LAST THREE YEARS 9303290115 930329 FIVE WHO ATE AT SIZZLER ARE FOUND TO BE INFECTED GRANTS PASS ORE FIVE PEOPLE WHO REPORTED GETTING SICK AFTER EATING AT A SIZZLER RESTAURANT HERE THIS MONTH WERE INFECTED WITH THE E COLI BACTERIA LOCAL HEALTH OFFICIALS SAID STATE AND COUNTY OFFICIALS CLOSED THE RESTAURANT BRIEFLY THURSDAY NIGHT TO INVESTIGATE A POSSIBLE CAUSE THEN ALLOWED THE RESTAURANT TO REOPEN SEVERAL MORE SUSPECTED VICTIMS HAVE BEEN HOSPITALIZED BUT IT HASN'T YET BEEN DETERMINED WHETHER THEY HAD THE POTENTIALLY DEADLY BACTERIA EXECUTIVES OF SIZZLER INTERNATIONAL INC THE LOS ANGELESBASED CHAIN SAID THERE IS NO EVIDENCE THAT THE OUTBREAK WAS ANYTHING BUT AN ISOLATED INCIDENT MORE THAN 400 PEOPLE BECAME SICK AND AT LEAST TWO CHILDREN DIED EARLIER THIS YEAR IN AN E COLI OUTBREAK ASSOCIATED WITH TAINTED HAMBURGER MEAT AT JACK IN THE BOX FAST FOOD RESTAURANTS IN THE PACIFIC NORTHWEST FOODMAKER INC THE SAN DIEGOBASED PARENT OF JACK IN THE BOX SAID LAST WEEK THAT IT EXPECTS A NET LOSS OF 20 MILLION TO 30 MILLION IN THE SECOND QUARTER ENDING APRIL 11 BECAUSE OF A DROP IN SALES AND ONETIME CHARGES ASSOCIATED WITH THAT OUTBREAK 9303290114 930329 WHO'S NEWS RIDDELL SPORTS NAMES NEW CEO NEW YORK RIDDELL SPORTS INC SAID IT NAMED DAVID MAUER CHIEF EXECUTIVE OFFICER SUCCEEDING ROBERT NEDERLANDER WHO WILL CONTINUE AS CHAIRMAN MR MAUER 44 YEARS OLD WAS PRESIDENT OF MATTELL USA WHERE HE OVERSAW EXPANSION OF SUCH TOY LINES AS BARBIE AND HOT WHEELS THE FOOTBALLHELMET MAKER ALSO REPORTED SHARPLY DECREASED EARNINGS ON HIGHER REVENUE FOR THE FOURTH QUARTER AND THE YEAR LARGELY THE RESULT OF REDUCED ROYALTIES FROM LICENSING OF THE RIDDELL TRADEMARK RIDDELL HAS DECLARED DEFAULTS IN ITS LICENSE AGREEMENT WITH A FOOTWEAR LICENSEE AND IT IS NOW IN LITIGATION OVER THE MATTER FOR THE QUARTER RIDDELL REPORTED A 63 DROP IN NET INCOME TO 339000 OR FOUR CENTS A SHARE ON A 10 GAIN IN REVENUE TO 129 MILLION FOR THE YEAR NET INCOME DROPPED 71 TO 647000 WHILE REVENUE JUMPED 59 TO 564 MILLION 9303290113 930329 WHO'S NEWS ZYNAXIS SAYS CEKORIC RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE MALVERN PA ZYNAXIS INC SAID THOMAS CEKORIC JR RESIGNED AS PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR AND A SEARCH HAS BEGUN FOR A SUCCESSOR THE BIOTECHNOLOGY COMPANY DIDN'T SAY WHY MR CEKORIC RESIGNED AND MR CEKORIC COULDN'T IMMEDIATELY BE REACHED FOR COMMENT JAMES S LYONS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID AN ANNOUNCEMENT COULD BE MADE AS EARLY AS TODAY ABOUT A NEW PRESIDENT AND CHIEF EXECUTIVE ZYNAXIS IS DEVELOPING NEW THERAPEUTIC DRUG DELIVERY SYSTEMS AND CELLBASED DIAGNOSTIC PRODUCTS IT REPORTED A 1992 NET LOSS OF 34 MILLION OR 71 CENTS A SHARE ON REVENUE OF 945000 THE ANNOUNCEMENT WAS MADE AFTER THE CLOSE OF TRADING FRIDAY ZYNAXIS SHARES ROSE 25 CENTS TO 5375 IN OVERTHECOUNTER TRADING 9303290112 930329 REPORT SUGGESTS THAT ALL ISN'T WELL WITH US FAMILIES BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEARLY HALF OF THE FAMILIES STARTED IN 1990 ARE AT RISK OF BREAKING UP BEING POOR OR HAVING CHILDREN WHO ARE NEGLECTED AND FALL BEHIND IN SCHOOL ACCORDING TO A STUDY THE DISHEARTENING FINDINGS ARE IN A NEW FAMILY RISK INDEX WHICH IS PART OF A DATA BOOK CALLED KIDS COUNT THE BOOK WHICH IS IN ITS FOURTH YEAR IS BEING RELEASED TODAY IT WAS PUT TOGETHER BY THE CENTER FOR THE STUDY OF SOCIAL POLICY AND FUNDED BY THE ANNIE E CASEY FOUNDATION THE INDEX MEASURES THE PROPORTION OF AMERICAN FAMILIES WHO BEGIN WITH THE ODDS STACKED AGAINST THEM BECAUSE THEY HAVE ONE OR MORE OF THE FOLLOWING RISKS THE MOTHER IS UNDER 20 YEARS OLD WHEN SHE HAS HER FIRST BABY THE MOTHER HASN'T YET GRADUATED FROM HIGH SCHOOL WHEN THE FIRST CHILD IS BORN THE PARENTS OF THE FIRST BABY AREN'T MARRIED FOR THE PURPOSES OF THIS STUDY A FAMILY BEGINS WHEN A FIRST CHILD IS BORN JUDITH WEITZ WHO PREPARED KIDS COUNT AT THE SOCIAL POLICY CENTER SAID THE BOOK IS DESIGNED AS AN INDICATOR TO GAUGE THE HEALTH OF THE US WE HAVE ALL SORTS OF ECONOMIC INDICATORS WE MEASURE CONSUMER CONFIDENCE BUT NOT CHILDREN'S CONFIDENCE IN THEIR FUTURE SHE SAID WE AS A COUNTRY ARE NOT MEASURING OUR HUMAN CAPITAL AND WE NEED TO DO THAT THE STUDY AND THE RISK INDEX SUGGESTED THAT ALL IS NOT WELL THE STUDY FOUND THAT 45 OF THE 17 MILLION FAMILIES STARTED IN 1990 HAD AT LEAST ONE OF THESE STRIKES AGAINST IT NEARLY ONE QUARTER HAD TWO STRIKES AGAINST IT AND MORE THAN 10 HAD THREE STRIKES AGAINST IT EACH OF THE RISKS INCREASES THE CHANCES THAT THE FAMILY WILL HAVE A HOST OF LARGE AND OFTEN INSURMOUNTABLE PROBLEMS TO DEAL WITH SUCH AS POVERTY AND DEPENDENCE ON WELFARE MS WEITZ SAID THE CHILDREN OF THESE FAMILIES ARE OFTEN NEGLECTED AND THEIR SCHOOLWORK IS POOR SHE SAID FAMILIES IN THE SOUTH SEEM TO HAVE THE ODDS STACKED AGAINST THEM MORE THAN OTHER REGIONS MISSISSIPPI LOUISIANA ALABAMA GEORGIA AND NEW MEXICO HAVE THE HIGHEST CONCENTRATION OF RISK FAMILIES IN THE NATION MORE THAN HALF OF THE FAMILIES STARTED IN THESE STATES DURING 1990 WERE AT RISK BASED ON THE CRITERIA IN CONTRAST FAMILIES STARTED IN NEW HAMPSHIRE MINNESOTA VERMONT NORTH DAKOTA AND IOWA WERE LIKELY TO HAVE FEWER RISKS THAN IN OTHER STATES THE REPORT ALSO SAID THAT ALTHOUGH THERE HAS BEEN MODEST NATIONAL PROGRESS IN HELPING INFANTS AND CHILDREN THE RISKS AND HARDSHIPS EXPERIENCED BY ADOLESCENTS CONTINUE TO RISE FIVE PERCENT OF AMERICAN TEENS AREN'T IN SCHOOL AND DON'T HAVE JOBS FROM 1986 TO 1991 THE JUVENILE CRIME RATE INCREASED 48 ACCORDING TO THE REPORT MORE THAN 12000 KIDS AGED 15 TO 19 DIED AS A RESULT OF ACCIDENT SUICIDE OR HOMICIDE IN 1990 AND THE DISADVANTAGES EXPERIENCED BY MINORITY CHILDREN ARE DISPROPORTIONATELY HIGHER THAN WHITE CHILDREN MS WEITZ SAID ONE REASON YOUNG CHILDREN ARE HELPED MORE BY SOCIETY THAN ADOLESCENTS IS ATTITUDE PEOPLE ARE MORE SYMPATHETIC WITH YOUNG CHILDREN IN TROUBLE RATHER THAN TEENS IN TROUBLE SHE SAID ALSO MANY YOUNG KIDS HAVE BEEN HELPED TO SURVIVE BETTER THROUGH TECHNOLOGICAL GAINS SUCH AS PRENATAL CARE AND INFANT CAR SEATS IT'S EASIER TO AFFECT THE LIFE OF A YOUNG CHILD WITH A TEENAGER YOU HAVE TO REALLY WORK ON CHANGING THEIR ENVIRONMENT AND SERVICES AND IT'S HARDER TO DO MS WEITZ SAID 9303290111 930329 TWO ATM NETWORKS INTERNET AND SOUTHEAST SWITCH DISCUSS MERGER A WALL STREET JOURNAL NEWS ROUNDUP TWO REGIONAL AUTOMATED TELLER MACHINE NETWORKS INTERNET INC RESTON VA AND SOUTHEAST SWITCH INC MAITLAND FLA SAID THEY ARE DISCUSSING A POSSIBLE MERGER THAT WOULD CREATE THE SECONDLARGEST REGIONAL ATM NETWORK IN THE US THE PROPOSED COMBINATION BRINGING TOGETHER THE MOST AND HONOR NETWORKS IS PART OF A GENERAL TREND TO CONSOLIDATE ATM OPERATIONS AND WOULD CREATE AN EXTENSIVE ATM NETWORK THAT WOULD STRETCH FROM FLORIDA TO PENNSYLVANIA INTERNET OPERATES THE MOST NETWORK WHILE HONOR IS OPERATED BY SOUTHEAST BUT BECAUSE OF BANK MERGERS OWNERS OF SOUTHEAST HAVE ALSO BECOME OWNERS OF INTERNET AND VICE VERSA SAID DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT AN INDUSTRY NEWSLETTER BASED IN SANTA MONICA CALIF AS A RESULT THIS IS SIMPLY AN OPPORTUNITY FOR THE BANKS TO CONSOLIDATE THEIR INVESTMENT IN AN ELECTRONIC BANKING SYSTEM 9303290110 930329 GLOBAL VIEW JAPANESE FIRMS ARE LOSING ONE KEY ADVANTAGE BY GEORGE MELLOAN ONE OF THE HOTTEST AUTO RACES OF 1992 DIDN'T TAKE PLACE ON A TRACK IT WAS THE LATEYEAR DRIVE BY FORD TO OVERTAKE HONDA AS MARKETER OF AMERICA'S BESTSELLING CAR MASHING DOWN THE ACCELERATOR WITH FLEET DEALS RETAIL DISCOUNTS AND HEAVY PROMOTION FORD PUSHED ITS TAURUS INTO FIRST PLACE AHEAD OF HONDA'S ACCORD SOME US AUTOMOTIVE WRITERS HAILED THE TAURUS VICTORY AS A SIGN THAT AMERICAN CARS ARE MAKING A COMEBACK AGAINST JAPANESE MAKES THEY CITED THE IMPROVED DESIGN AND QUALITY OF AMERICAN PRODUCTS BE THAT AS IT MAY THERE ARE INDEED REASONS FOR JAPAN'S COMPETITORS TO BE MORE OPTIMISTIC AND IN ALL MARKETS NOT JUST AUTOMOBILES JAPANESE COMPANIES ARE RAPIDLY LOSING A KEY SOURCE OF COMPETITIVE ADVANTAGE THE RELATIVE EASE THEY HAVE HAD UP UNTIL NOW IN OBTAINING CAPITAL AS AN AMERICAN EXECUTIVE PUT IT TO ME NOT LONG AGO IF YOU HAVE FREE MONEY YOU CAN DO ALMOST ANYTHING JAPANESE COMPANIES HAVEN'T QUITE HAD FREE CAPITAL IN THE PAST BUT THEY HAVE COME CLOSE JAPAN'S ECONOMIC POLICIES HAVE TRADITIONALLY ENCOURAGED CITIZENS TO FORGO CONSUMPTION SAVE THEIR YEN AND YIELD THEM UP AT LOW RETURNS TO BANKS AND OTHER INTERMEDIARIES THE RESULT HAS BEEN THAT JAPANESE COMPANIES COULD EITHER BORROW FROM OR SELL STOCK TO BANKS AND OTHER LARGE INSTITUTIONS ON FAVORABLE TERMS NOT ONLY WERE BORROWING COSTS LOW BUT THE INVESTORS APPLIED LITTLE PRESSURE TO GENERATE BIG RETURNS ON INVESTMENT SATISFYING THEMSELVES WITH CAPITAL GAINS IT WASN'T QUITE FREE MONEY BUT IT GAVE JAPANESE FIRMS A PRICING EDGE AS THEY WENT BOLDLY AROUND THE WORLD PENETRATING NEW MARKETS THEIR ABILITY TO PRODUCE HIGHQUALITY PRODUCTS OF COURSE HELPED AS WELL BUT ALL THAT HAS CHANGED WITH THE COLLAPSE OF THE JAPANESE REAL ESTATE AND STOCK MARKET BUBBLE THE CAPITAL GAINS THAT BANKS AND OTHER INVESTORS WERE WILLING TO ACCEPT IN LIEU OF DIVIDENDS HAVE BECOME CAPITAL LOSSES STOCKS AND REAL ESTATE ON THE BOOKS OF THE MANUFACTURING CORPORATIONS THEMSELVES HAVE LOST MUCH OF THEIR WORTH FURTHER REDUCING BORROWING LEVERAGE MOST IMPORTANT OF ALL THE CONVERTIBLE DEBENTURES THE JAPANESE COMPANIES ISSUED DURING THEIR YEARS OF FAME AND FORTUNE ARE NOW COMING UP FOR REDEMPTION SINCE CONVERSION PRICES ARE MOSTLY OUT OF THE MONEY BECAUSE OF THE STOCK MARKET CRASH THE LOANS WILL HAVE TO BE REFINANCED AND AT COSTS FAR HIGHER THAN BEFORE CONVERTIBLE DEBENTURES WERE A VERY ATTRACTIVE WAY FOR JAPANESE COMPANIES TO FINANCE DURING THE DAYS WHEN JAPANESE STOCK PRICES WERE CLIMBING TOWARD THE STRATOSPHERE THE COMPANIES COULD GET RELATIVELY LOW BORROWING COSTS BECAUSE INVESTORS WERE ATTRACTED BY THE PROSPECT OF EVENTUALLY CONVERTING THE DEBENTURES TO HIGHVALUE STOCKS BUT WITH JAPANESE STOCKS NOW AT HALF THE VALUE OF THREE YEARS AGO THE BUYERS WANT CASH FEW PEOPLE ARE WILLING TO CONVERT TO STOCKS MERELY IN HOPES OF A MARKET RECOVERY AN ARTHUR ANDERSEN STUDY LAST YEAR ESTIMATED THAT JAPANESE COMPANIES WOULD HAVE TO REDEEM MORE THAN 14 TRILLION YEN 120 BILLION IN CONVERTIBLE AND WARRANT BONDS OVER THE NEXT TWO YEARS AND THESE ARE NOT LIKELY TO BE CONVERTED INTO EQUITY AS THEY ARE SO FAR OUT OF THE MONEY THE STUDY GOES ON TO SAY THAT THE MOVE AWAY FROM CHEAP CONVERTIBLE BONDS TO MORE EXPENSIVE STRAIGHT BONDS WILL DRAMATICALLY INCREASE CORPORATE BORROWING COSTS AND DEPRESS PROFITABILITY FOR SOME YEARS TO COME THIS WILL ELIMINATE ONE OF THE COMPETITIVE ADVANTAGES THAT JAPANESE CORPORATIONS HAVE EXPERIENCED IN PRIOR YEARS ALL OF THIS COMES AT A TIME WHEN JAPANESE COMPANIES ARE FACED WITH SLUMPING EARNINGS BECAUSE OF EXCESS CAPACITY IN THE GLOBAL AUTO INDUSTRY THE DEPRESSIVE EFFECT OF A STRONG YEN ON CASH FLOWS AND SLACK DEMAND IN JAPAN'S DOMESTIC MARKETS CAR SALES IN JAPAN LAST YEAR WERE OFF 14 FROM THE YEAR BEFORE IN THE AUTO INDUSTRY PROFITS QUICKLY SHRINK WHEN PRODUCTION AND SALES FALL TOWARD THE BREAKEVEN LEVEL AND THEY SOON BECOME LARGE LOSSES BELOW THAT LEVEL AS GM HAS JUST DEMONSTRATED JAPANESE AUTO COMPANIES THUS HAVE BEEN REPORTING SHARP EARNINGS DECLINES AS A RESULT OF THE SUDDEN CAPITAL CRUNCH JAPAN HAS BECOME AWARE THAT IT LACKS SOMETHING ANY OTHER MAJOR INDUSTRIAL COUNTRY WOULD TAKE FOR GRANTED IT DOESN'T HAVE A BOND MARKET OR AT LEAST NOT ONE REALLY WORTHY OF THE NAME THE BANKS THAT DOMINATE THE JAPANESE SYSTEM HAVE NEVER WELCOMED THE COMPETITION OF A BOND MARKET AND HENCE MOF HAS NEVER ENCOURAGED DEVELOPMENT CORPORATIONS SO LONG AS THEY COULD GET CHEAP MONEY ELSEWHERE DIDN'T NOTICE THE ABSENCE BUT WITH THE BANKING SYSTEM IN DISARRAY AND HEAVY REFINANCING NEEDS COMING UP THERE IS SUCH A NEED NOW MOF REPORTEDLY IS LOOSENING RESTRICTIONS BUT BONDS WILL MEAN THAT CORPORATIONS NOW WILL PAY MORE DEARLY FOR CREDIT THERE ARE OTHER EFFECTS ONE OF THE MOST DRAMATIC IS THE LOSS OF APPETITE FOR FURTHER INVESTMENT IN THE NORTH AMERICAN MARKET AND TO SOME EXTENT EUROPE BECAUSE OF OVERCAPACITY AND RECESSION THOSE MARKETS HAVE BECOME HIGHLY COMPETITIVE AND HENCE MORE DIFFICULT FOR THE JAPANESE IN THEIR PRESENT STRAITENED CIRCUMSTANCES AS AN ALTERNATIVE JAPANESE COMPANIES ARE TURNING BACK TOWARD ASIA AND PARTICULARLY TO THE ECONOMIC FRONTIER CHINA REPRESENTS THE PATTERN IN CHINA IS A CLASSICAL ONE FOR JAPANESE DEVELOPMENT OF THIRD WORLD MARKETS THE JAPANESE GOVERNMENT HAS GRANTED LOANS TO CHINA AS PART OF THE SOFTENING UP PROCESS OPENING THE DOOR FOR JAPANESE COMPANIES TO INSTALL MANUFACTURING CAPACITY JAPAN'S PRIMARY FOCUS HAS BEEN ON NORTHERN CHINA BUT IT ALSO IS TAKING AN INTEREST IN THE FASTGROWING PROVINCES OF THE SOUTH AS WELL IN PARTICULAR GUANGDONG PROVINCE OPPOSITE HONG KONG JAPANESE COMPANIES SEE CHINA AS A PLACE WHERE THEY CAN COMBINE THEIR TECHNOLOGY AND MANUFACTURING SKILLS WITH LOWCOST LABOR TO CASH IN ON A VAST NEW MARKET ASSUMING OF COURSE THAT THE CHINESE CONTINUE TO OPEN UP TO FOREIGN PRODUCERS DOES THE JAPANESE ECONOMIC DEBACLE MEAN WE ARE SEEING THE SUNSET OF THE INCREDIBLE JAPANESE MARKET CONQUEST THE WORLD HAS EXPERIENCED OVER THE PAST DECADE OR SO NOT NECESSARILY IN THE VIEW OF MY AMERICAN BUSINESSMAN FRIEND JAPANESE COMPANIES MAY BE DOWN BUT THEY'RE NOT OUT HE SAYS DESPITE THE BOOMBUST CYCLE THAT JAPAN INC'S ECONOMIC MASTERMINDS ALLOWED TO RAVAGE THE CAPITAL MARKET COSTS MAY BE RISING BUT COMPANIES STILL HAVE SKILLED MANAGEMENT AND ADVANCED TECHNOLOGY IN SHORT FORD WOULD BE UNWISE TO RELAX JUST BECAUSE ITS TAURUS PULLED AHEAD LAST YEAR 9303290109 930329 WHO'S NEWS FAY'S INC NAMES SON OF COFOUNDER PANASCI TO 2 HIGH POSITIONS LIVERPOOL NY FAY'S INC SAID DAVID H PANASCI WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER MOVING HIM IN LINE TO SUCCEED HIS FATHER HENRY J PANASCI JR THE DRUGSTORE CHAIN'S COFOUNDER THE ELDER MR PANASCI 64 YEARS OLD HAD HELD THE POSITIONS AND REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE SAID HIS SON WHO IS 34 WILL TAKE OVER HIS DAILY DUTIES AS HIS OWN WORKLOAD DECLINES CERTAINLY AT THIS POINT IT'S REASONABLE TO EXPECT THAT HE WILL BE MY SUCCESSOR WE HAVE A VERY YOUNG AND AGGRESSIVE PRESIDENT HE SAID DAVID PANASCI PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT AND ALSO HAS SERVED AS PRESIDENT OF THE COMPANY'S PAPER CUTTER DIVISION WITH 34 PAPER CUTTER STORES IN NEW YORK PENNSYLVANIA AND NEW JERSEY FAY'S OPERATES 245 DRUGSTORES IN NEW YORK PENNSYLVANIA NEW HAMPSHIRE AND VERMONT AND 30 WHEELS DISCOUNT AUTO SUPPLY STORES IN UPSTATE NEW YORK AS WELL AS THE PAPER CUTTER STORES 9303290108 930329 SOME BIG INSURANCE COMPANIES IN ITALY ARE ON THE BLOCK BUT BUYERS SEEM SCARCE BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL MILAN A LARGE SLICE OF THE ITALIAN INSURANCE MARKET IS UP FOR SALE BUT EVEN THOUGH PROSPECTS HAVEN'T LOOKED THIS GOOD FOR INSURERS HERE IN YEARS POTENTIAL INVESTORS ARE LYING LOW NONE OF THE COMPANIES INVOLVED ACKNOWLEDGES PUBLICLY THAT IT IS ON THE BIDDING BLOCK BUT INSURANCE EXECUTIVES AND MERCHANT BANKERS HERE SAY DISCREET FOR SALE SIGNS ARE HANGING ON ABOUT FIVE OF THE 10 LARGEST INSURANCE CONCERNS IN ITALY THE LIST IS UNDERSTOOD TO INCLUDE PROFITABLE OUTFITS LIKE LA FONDIARIA SPA AND ITS SUBSIDIARIES MILANO AND PREVIDENTE SOCIETA ASSICURATRICE INDUSTRIALE SPA WHICH IS KNOW AS SAI AND THE FIAT GROUP'S TORO ASSICURAZIONI AS WELL AS A HANDFUL OF NEARBANKRUPT WRECKS TODAY THE FUTURE OF ABOUT 25 OF THE MARKET IS IN QUESTION ESTIMATES FAUSTO PANZERI A MILAN INSURANCE CONSULTANT AND THE CHAIRMAN OF PAFIN SPA AN INSURANCE HOLDING COMPANY THE ITALIAN INSURANCE MARKET AMOUNTED TO 40 TRILLION LIRE 257 BILLION IN PREMIUM INCOME IN 1991 THE UNCERTAIN FATE OF THESE INSURANCE COMPANIES HIGHLIGHTS THE PARADOX FACING ITALIAN BUSINESS TODAY AS THE NATION STRUGGLES TO REMOVE THE STAIN OF CORRUPTION PERMEATING ITS SOCIETY ON THE ONE HAND INSURANCE COMPANIES ARE LIKELY TO BE AMONG THE LARGEST BENEFICIARIES OF THE NEW CLAMPDOWN ON ORGANIZED CRIME IT HAS ALREADY CAUSED A MARKED IMPROVEMENT IN LOSS RATIOS THEY ALSO STAND TO WRITE SUBSTANTIAL LINES OF NEW BUSINESS AS THE GOVERNMENT PRESSES AHEAD WITH AMBITIOUS REFORMS FOR PENSION FUNDS AND HEALTH CARE AND THE SCHEDULED LIFTING OF AUTOMOBILE TARIFF RESTRICTIONS NEXT YEAR COULD PROVIDE A BURST OF PROFITABILITY FOR HARDPRESSED CAR INSURERS ON THE OTHER HAND FEW PEOPLE EITHER IN ITALY OR ABROAD ARE PREPARED TO BET ON THE OUTCOME OF THE CLEAN HANDS POLITICALCORRUPTION INVESTIGATION WHICH IS LEAVING NO SECTOR UNSCATHED INCLUDING INSURANCE POTENTIAL INVESTORS ARE AWARE THAT INSURANCE COMPANIES RANK AMONG THE PRIME VICTIMS OF THE DEEPROOTED SYSTEM OF GRAFT AND CONNIVANCE INSURANCE IS ONLY ONE SECTOR WHOSE FUTURE IS HANGING IN THE BALANCE ALMOST EVERY DAY BUSINESS AND POLITICAL LEADERS IN ITALY NERVOUSLY WATCH THE TELEVISED PARADE AS A NEW CLUTCH OF SUSPECTS OFTEN INCLUDING WELLKNOWN EXECUTIVES MARCH INTO PRISON ON BRIBERY CORRUPTION OR ILLEGAL POLITICALFUNDING CHARGES SO FAR MORE THAN 1000 PEOPLE ARE UNDER INVESTIGATION AND MORE THAN 250 HAVE BEEN ARRESTED INCLUDING THE CHIEF EXECUTIVES AT BOTH THE SAI AND TORO INSURANCE COMPANIES BOTH WERE HELD ON CHARGES RELATING TO CONSTRUCTION RATHER THAN INSURANCE ACTIVITIES THE UPHEAVAL AND THE ANXIETY IT CAUSES WEIGH HEAVILY ON ITALIAN BUSINESS IT ISN'T JUST INSURANCE TRANSACTIONS THAT HAVE COME TO A HALT PUBLICWORKS CONTRACTORS ARE COMPLAINING THAT JUMPY MUNICIPAL OFFICIALS HAVE PUT ALL NEW BUILDING PROJECTS ON HOLD THIS TOGETHER WITH THE RECESSION HAS HIT SMALL BUSINESSES HARD ESPECIALLY THOSE THAT DEPEND ON A LIBERAL FLOW OF LOOSE CASH RESTAURANTS IN ROME ARE EMPTY AND SALES AT SOME OF MILAN'S SWANK SHOPS HAVE COME TO A STANDSTILL ONE ELEGANT BUT ANXIOUS ANTIQUE DEALER WHOSE SHOP ISN'T FAR FROM THE MILAN COURTS COMPLAINS THAT HER BEST PROSPECTS AREN'T SHOWING UP ANY MORE THOSE CUSTOMERS SHE EXPLAINS WERE THE WIVES AND MISTRESSES OF POLITICIANS WITH EXCESS MONEY THAT HAD TO BE SPENT SELLING INSURANCE IN ITALY INVOLVES RISKS THAT AREN'T COMPARABLE TO THOSE IN OTHER MAJOR EUROPEAN MARKETS INSURANCE COMPANIES IN ITALY PAY OUT MASSIVE SUMS ON ACCIDENT AND FIRE CLAIMS LINKED TO ORGANIZED CRIME PETTY FRAUD AND ARSON ESPECIALLY IN THE SOUTH ACCORDING TO ESTIMATES BY THE ITALIAN NATIONAL INSURANCE ASSOCIATION A QUARTER OF ALL CLAIMS FILED IN 1991 IN MESSINA SICILY WERE FRAUDULENT IN MATERA AN INLAND TOWN NEAR THE HEEL OF ITALY THE FIGURE WAS AS HIGH AS 45 ITALIAN CAR INSURANCE IS JUST AS RISKY TARIFFS FOR COMPULSORY THIRDPARTY MOTOR RATES ARE FIXED BY LAW AND INSURANCE COMPANIES CAN'T LEGALLY REFUSE ANY REQUEST FOR COVERAGE THAT MAKES IT DIFFICULT FOR INSURERS TO PROTECT THEMSELVES AGAINST BAD RISKS LEADING TO SOME UNLIKELY BUT INNOVATIVE MARKETING STRATEGIES ONE MILAN INSURANCE EXECUTIVE WHO ASKS NOT TO BE IDENTIFIED TELLS HOW HIS COMPANY HAS MADE SURE THAT ALL ITS OFFICES SOUTH OF NAPLES ARE SITUATED ABOVE STREET LEVEL WITHOUT ANY SHOP FRONTAGE TO AVOID UNWELCOME UNSCREENED CUSTOMERS ANOTHER TACTIC HE SAYS IS TO TELL POTENTIAL CLIENTS THAT THE OFFICE HAS RUN OUT OF FORMS NONETHELESS ITALY'S INSURANCE COMPANIES HAVEN'T HAD IT SO GOOD FOR A LONG TIME ALTHOUGH 1992 RESULTS AREN'T YET OUT INSURERS ARE REPORTING A SHARP RISE IN PREMIUM INCOME LOSS RATIOS ARE IMPROVING AND ANALYSTS ARE PREDICTING AN IMPRESSIVE INCREASE IN PROFITABILITY FROM THE MAJOR INSURERS PAOLA BURATTI AT MILAN BROKERAGE PASFIN SAYS SHE IS EXPECTING STRONG PROFIT INCREASES ON THE NONLIFE SIDE BECAUSE OF TOUGHER UNDERWRITING GUIDELINES AND THE DROP IN CRIME LARGELY A RESULT OF THE CRACKDOWN AGAINST THE MAFIA THE LIFEINSURANCE MARKET WHICH IS HUGELY UNDERDEVELOPED IN THIS COUNTRY COMPARED WITH OTHER EUROPEAN MARKETS IS ALSO GROWING RAPIDLY AS SHOWN BY ITALY'S LARGEST INSURER ASSICURAZIONI GENERALI WHICH RECENTLY REPORTED A 12 INCREASE IN DOMESTIC LIFE PREMIUMS AT THE SAME TIME THE SUDDEN RUSH OF ITALIAN INSURERS ONTO THE MERGERSANDACQUISITIONS MARKET IS ONE MORE SYMPTOM OF THE UNRAVELING OF THE GOGO 1980S THAT WAS THE DECADE OF THE DYNAMIC ITALIAN INDUSTRIALISTS THE AGNELLIS THE FERRUZZIS THE DE BENEDETTIS WHOSE BOLD MOVES TO DIVERSIFY ACROSS BOTH NATIONAL AND INDUSTRIAL BOUNDARIES CAUGHT EUROPE'S IMAGINATION TODAY AS EUROPE'S ECONOMIES SLIDE INTO RECESSION THESE SAME CONGLOMERATES ARE FINDING THEMSELVES FACING HARD TIMES AND IN MANY CASES HEAVY DEBTS AS THEY REFOCUS ON TRADITIONAL CORE BUSINESSES ONE BY ONE THEIR INSURANCE SUBSIDIARIES ARE GOING UP FOR SALE SPECIFICALLY THIS GROUP INCLUDES LA FONDIARIA SAI AND TORO ALL OF THEM DECLINE TO COMMENT ON WHETHER THEY ARE FOR SALE BUT THERE ARE PLENTY OF INDICATORS IN THE CASE OF LA FONDIARIA IT IS WIDELY KNOWN THAT THE FERRUZZI FAMILY WHICH CONTROLS HALF OF THE COMPANY WANTS TO GET OUT OF INSURANCE AND CONCENTRATE ON FOOD CAMILLO DE BENEDETTI THE OTHER HALFOWNER DIED EARLIER THIS YEAR SIMILARLY THE OWNER OF SAI SALVATORE LIGRESTI IS KNOWN TO BE HAVING IMMENSE PROBLEMS IN HIS CONSTRUCTION BUSINESS AND MAY WANT TO DUMP THE INSURANCE COMPANY AND FIAT THE OWNER OF TORO LAST YEAR ANNOUNCED A PLAN TO UNLOAD NONSTRATEGIC ASSETS TO RAISE MONEY FOR ITS HARDPRESSED AUTO BUSINESS SINCE MOST OF THE INSURERS THOUGHT TO BE FOR SALE ARE SOUND AND PROFITABLE IN THEIR OWN RIGHT THE QUESTION MARKS HANGING OVER THEIR FUTURE HAVE LITTLE IMMEDIATE IMPACT ON POLICYHOLDERS AND THE INSURANCE MARKET AS A WHOLE RIVAL ITALIAN INSURERS ARE ANXIOUSLY WATCHING HOWEVER TO SEE WHETHER THE PRESENT SITUATION WILL OPEN THE DOOR TO AGGRESSIVE NEW RIVALS THAT MIGHT CUT TARIFFS THE CURRENT UPTURN IN THE INSURANCE CYCLE ALONE ISN'T ENOUGH TO PERSUADE NEW INVESTORS TO ENTER THE MARKET A MORE SIGNIFICANT FACTOR IS THE PACE OF SOCIAL AND ECONOMIC CHANGE IN A COUNTRY WHERE ENDEMIC POLITICAL INSTABILITY MEANS THAT MUCHDISCUSSED IMMINENT REFORMS TEND TO REMAIN PERPETUALLY SO THIS TIME THOUGH AFTER SEVERAL FALSE STARTS THE CHANGES COULD BE FOR REAL MANY ITALIAN OBSERVERS BELIEVE 9303290107 930329 EC PANEL INVESTIGATES COMPLAINTS ON IMPORT OF RUSSIAN ALUMINUM SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION HAS BEGUN AN INVESTIGATION OF COMPLAINTS THAT ALUMINUM IMPORTS FROM RUSSIA AND OTHER FORMER SOVIET REPUBLICS ARE HURTING COMMUNITY PRODUCERS A COMMISSION SPOKESMAN SAID THE INQUIRY IS FOCUSING ON WHETHER PRICES HAVE DROPPED AS THE IMPORTS HAVE ENTERED COMMUNITY MARKETS INDICATING UNDERCUTTING WHETHER IMPORTS HAVE SURGED IN A DISRUPTIVE WAY AND WHETHER ANY REAL HARM HAS BEEN CAUSED TO COMMUNITY PRODUCERS THE INVESTIGATION WAS BEGUN BY SIR LEON BRITTAN THE COMMISSIONER FOR EXTERNAL EC TRADE UNDER SAFEGUARD PROVISIONS IN EC TRADE ACCORDS WITH THE FORMER SOVIET UNION THE SPOKESMAN SAID IF REAL HARM IS FOUND THE SPOKESMAN SAID THE EC CAN NEGOTIATE LIMITS ON IMPORTS OR IMPOSE MEASURES TO PROTECT EC PRODUCERS HE NOTED THIS IS AN INVESTIGATION WITHOUT PREJUDICE TO DETERMINE WHETHER EC INDUSTRY HAS BEEN HARMED A COMMISSION SOURCE SAID THE PROBE WAS BEGUN AFTER A COMPLAINT BY PECHINEY SA OF FRANCE 9303290106 930329 IBM FORMALLY NAMES GERSTNER CEO HIS TURNAROUND STRATEGY ISN'T YET SET BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LIKE A SUPREMELY CONFIDENT WHIZ KID CRAMMING FOR FINALS ON THE WAY INTO THE EXAM ROOM LOUIS V GERSTNER JR IS ALREADY TAKING CHARGE OF INTERNATIONAL BUSINESS MACHINES CORP IN A MANHATTAN BALLROOM FRIDAY IBM PUBLICLY CROWNED MR GERSTNER CHAIRMAN AND CHIEF EXECUTIVE OFFICER EFFECTIVE THURSDAY HE BLUNTLY DECLARED THAT HE DIDN'T YET HAVE A TURNAROUND STRATEGY IN MIND HADN'T YET MET WITH ANY OF IBM'S EXECUTIVES AND WOULD RELY ON OTHER PEOPLE'S ADVICE TO UNDERSTAND IBM'S ARCANE TECHNOLOGY THEN HE GOT TO WORK RACING OUT OF THE BALLROOM WITH AN IBM PERSONNEL MANAGER HE STRODE FIVE BLOCKS TO HIS NEW COMPANY'S MADISON AVENUE SKYSCRAPER AND ON THE WAY MADE BY HIS COUNT THREE IBM EXECUTIVE DECISIONS UNDISCLOSED AT HIS SIDE THROUGHOUT THE DAY WAS HIS LONGTIME AIDE DAVID KALIS WHO WAS ALREADY INTRODUCING HIMSELF AS A NEW IBM VICE PRESIDENT TRANSPLANTATION SYMPOSIUM DECLARED A BIG SIGN OUTSIDE FRIDAY'S NEWS CONFERENCE THOUGH IT HAPPENED TO REFER TO THE AUTOLOGOUS BONE MARROW MEETING NEXT DOOR IT APTLY DESCRIBED THE CHAOTIC ERA SUDDENLY UNDER WAY AT IBM A STONYFACED JOHN AKERS BEGAN THE CONFERENCE BY ANNOUNCING THAT HE WOULD STEP DOWN AS IBM'S CHAIRMAN AND CEO AT A MARCH 30 BOARD MEETING THAT SENT IBM PUBLICISTS SCRAMBLING FRANTICALLY TO FIGURE OUT WHO WOULD BE RUNNING THE COMPANY BETWEEN MARCH 30 AND APRIL 1 IF WE'RE GOING TO ERR WE'RE GOING TO ERR IN THE DIRECTION OF MOVING TOO FAST SAID MR GERSTNER IN AN INTERVIEW AFTER THE ANNOUNCEMENT POUNDING HIS ARMCHAIR WE DON'T HAVE THE LUXURY TO SORT OF SIT AROUND AND STUDY THE PROBLEM THE PROBLEM IS ONE OF THE MOST DAUNTING IN BUSINESS HISTORY EVEN AS MR GERSTNER SPOKE INDUSTRY ANALYSTS WERE WARNING THAT THE MAINFRAME COMPUTER MARKET THE GOLD MINE THAT BUILT THE BIG BLUE EMPIRE IS ERODING FAR FASTER THAN ANYONE ANTICIPATED A HUSKY IMPATIENT SPARK PLUG THE 51YEAROLD MR GERSTNER IS THE FIRST CHIEF THAT DEEPLY INBRED IBM HAS IMPORTED FROM OUTSIDE THE COMPANY HE BRUSHED ASIDE CRITICISM THAT HE DOESN'T HAVE THE TECHNICAL EXPERTISE TO CHART IBM'S PATH TO RECOVERY YOU ADDRESS IT THE WAY YOU ADDRESS ANY OTHER BUSINESS PROBLEM SAID THE FORMER MCKINSEY & CO WUNDERKIND CONSULTANT AMERICAN EXPRESS CO PRESIDENT AND RJR NABISCO INC CHAIRMAN YOU FIND THE PEOPLE WHO UNDERSTAND THE FACTS OF THE SITUATION YOU LISTEN TO OUTSIDERS AS WELL AS INSIDERS YOU LOOK FOR WAYS TO HEDGE THE BET AND YOU MONITOR THE HELL OUT OF IT FOR NOW HE OFFERED ONLY A FEW CLUES ABOUT HIS STRATEGY FOR IBM DECENTRALIZE DECISIONMAKING GET CLOSER TO CUSTOMERS IN ITS BROADEST TERMS IT SOUNDED SIMILAR TO MR AKERS'S PROGRAM OF TURNING IBM'S SPRAWLING COLOSSUS INTO A DOZEN INCREASINGLY AUTONOMOUS BABY BLUES IF THAT'S THE RIGHT STRATEGY GREAT I'M JUST GOING TO KICK IT INTO OVERDRIVE MR GERSTNER SAID MATTEROFFACTLY IF IT'S NOT WE'LL CHANGE IT IN HIS NEWS CONFERENCE MR GERSTNER VOWED TO BREATHE LIFE BACK INTO IBM'S BATTERED STOCK WHICH HAS FALLEN IN HALF OVER THE PAST YEAR AND LOST MORE THAN 70 BILLION IN TOTAL VALUE SINCE ITS MID80S PEAK WHETHER BREAKING UP THE COMPANY IS A PART OF THAT I DON'T KNOW HE ADDED SO FAR THE MARKET HAS BEEN COOL TO MR GERSTNER'S ARRIVAL IBM STOCK CLOSED FRIDAY AT 51375 UP 875 CENTS ON THE DAY BUT DOWN 2875 SINCE MR GERSTNER'S SELECTION WAS FIRST REPORTED WEDNESDAY MR GERSTNER'S SELECTION REPRESENTS AN AUDACIOUS GAMBLE BY IBM'S BOARD THAT A NUTSANDBOLTS GENERALIST CAN FIX IBM BETTER THAN A VISIONARY SPECIALIST THE IBM SEARCH COMMITTEE PUT TOGETHER A CONFIDENTIAL LIST OF 15 SPECIFICATIONS FOR ITS NEW CEO OF WHICH ONLY ONE MENTIONED COMPUTERS INFORMATION AND HIGHTECHNOLOGY EXPERIENCE HIGHLY DESIRABLE BUT NOT OPPOSED TO CONSIDERING EXTRAORDINARY BUSINESS LEADERS THE SECRETIVE SEARCH BEGAN IN JANUARY AFTER A STUNNING MANAGEMENT SHAKEUP THAT CLEARED ASIDE MR AKERS AND HIS TWO TOP LIEUTENANTS IT QUICKLY BECAME THE BIGGEST CORPORATE BEAUTY CONTEST EVER ON FRIDAY THE COMMITTEE CHAIRMAN RETIRED JOHNSON & JOHNSON CHAIRMAN JAMES BURKE SAID THE BOARD CONSIDERED 125 CANDIDATES AROUND THE WORLD AND SOUGHT ADVICE FROM MORE THAN 75 PEOPLE FEARFUL OF LEAKS AND OVERHEARD CONVERSATIONS THE COMMITTEE EVEN ASSIGNED CODENAMES TO KEY PROSPECTS IN THE SEARCH MR GERSTNER WAS ABLE THE RADIO CODE FOR A BECAUSE HE RECEIVED THE FIRST PHONE CALL TO IBM'S EMBARRASSMENT THE CHIEFS OF APPLE COMPUTER INC MOTOROLA INC ALLIEDSIGNAL HEWLETTPACKARD CO AND SEVERAL OTHER COMPANIES ALL PUBLICLY RULED THEMSELVES OUT OF THE SEARCH OFFICIALS CLOSE TO THE SEARCH SAID THE MOTOROLA EXECUTIVE GEORGE FISHER WAS UNTIL RECENTLY AN ESPECIALLY STRONG CANDIDATE BUT MR BURKE INSISTED THAT IBM ULTIMATELY MADE ONLY ONE OFFER TO MR GERSTNER THIS MYTH THAT HE WAS LAST IN LINE SIMPLY ISN'T TRUE HE SAID IBM DIDN'T DISCLOSE MR GERSTNER'S PAY PACKAGE WHICH IT WAS APPARENTLY STILL HAMMERING OUT LATE LAST WEEK MR GERSTNER SPENT MUCH OF FRIDAY REACHING OUT TO HIS NEW EMPLOYEES HIS NEWS CONFERENCE WAS BROADCAST TO IBM OFFICES AROUND THE US AFTERWARD HE HOPPED ON A HELICOPTER TO ARMONK FOR HIS FIRST MEETING WITH IBM'S TOP EXECUTIVES BUT HE MADE NO ATTEMPT TO DISGUISE HIS STATUS AS AN INTERLOPER HE WORE AN EGGSHELL BLUE SHIRT A SUBVERSIVE FASHION STATEMENT IN WHITESHIRTED IBM AND ASKED DURING THE BROADCAST WHETHER HE HIMSELF USED A PERSONAL COMPUTER HE REPLIED I HAVE AN IBM PC IN MY OFFICE I HAVE ONE IN MY HOME AND THEN HESITATED I DO HAVE A LAPTOP HE CONTINUED BUT I CAN'T REMEMBER THE NAME 9303290105 930329 BUSINESS BRIEF ABB ASEA BROWN BOVERI DANISH UTILITY SEAS TO BUY 768 MILLION OF EQUIPMENT ABB ASEA BROWN BOVERI STOCKHOLM THE SWISSSWEDISH POWER AND ENGINEERING GROUP SAID IT REACHED AN AGREEMENT WITH THE DANISH POWER UTILITY SEAS COVERING THE DELIVERY OF EQUIPMENT WORTH ABOUT 600 MILLION KRONOR 768 MILLION THE ORDER COVERS THE DELIVERY OF CONVERTER TERMINALS FOR THE PLANNED HIGHVOLTAGE DIRECTCURRENT LINK BETWEEN DENMARK AND NORTHERN GERMANY ABB SAID THE LINK COMPRISES TWO CONVERTER STATIONS ONE IN DENMARK AND ONE IN GERMANY IT IS SCHEDULED TO BE READY FOR OPERATION IN LATE 1995 SAID ABB A DEFINITE CONTRACT WILL BE SIGNED WITH SEAS THE PROJECT MANAGER AND ITS GERMAN PARTNER VEAG ABB SAID 9303290104 930329 CLINTON NAMES BLINDER AND STIGLITZ TO COUNCIL OF ECONOMIC ADVISERS WASHINGTON PRESIDENT CLINTON AS EXPECTED NAMED ECONOMISTS ALAN BLINDER AND JOSEPH STIGLITZ TO SERVE AS MEMBERS OF HIS COUNCIL OF ECONOMIC ADVISERS MR BLINDER WHO HELPED SHAPE MR CLINTON'S BUDGET PLAN IS ON LEAVE FROM HIS TEACHING POST AT PRINCETON UNIVERSITY A MACROECONOMIST HE IS EXPECTED TO FOCUS ON FISCAL AND MONETARY POLICY ISSUES AND ON SOME INTERNATIONAL ECONOMIC MATTERS MR STIGLITZ WHO ARRIVED IN WASHINGTON THIS MONTH IS ON LEAVE FROM STANFORD UNIVERSITY A MICROECONOMIST MR STIGLITZ IS EXPECTED TO CONCENTRATE ON REGULATORY MATTERS AS WELL AS THE ADMINISTRATION'S HEALTHCARE REFORM PACKAGE THE NOMINATIONS ARE SUBJECT TO SENATE CONFIRMATION LAURA TYSON THE UNIVERSITY OF CALIFORNIA AT BERKELEY ECONOMIST WHO HEADS THE THREEMEMBER COUNCIL ALREADY HAS BEEN CONFIRMED HER EXPERTISE IS IN TRADE ISSUES 9303290103 930302 POLITICS & POLICY DOCTORS SEEING HEALTHSYSTEM FAULTS LIE LOW AS CLINTON DRAFTS PLAN THAT COULD CURB INCOMES BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S PLAN FOR HEALTHCARE OVERHAUL WON'T BE UNVEILED UNTIL MAY BUT ALREADY ONE THING IS CLEAR DOCTORS ARE GOING TO TAKE A HIT UNDER THE PLAN DOCTORS' INCOMES WHICH NOW AVERAGE MORE THAN 150000 A YEAR ARE ALMOST CERTAIN TO BE CURBED MANY IN PRIVATE PRACTICE COULD BE FORCED TO JOIN NETWORKS OF PROVIDERS SUCH AS HEALTH MAINTENANCE ORGANIZATIONS AND BE PUT ON SALARY THE PRESIDENT'S HEALTHREFORM TASK FORCE IS EVEN CONSIDERING TEMPORARY GOVERNMENT REGULATION OF PHYSICIAN FEES SO WHY AREN'T THE DOCTORS SCREAMING IN YEARS PAST SUCH AN ASSAULT WOULD HAVE BEEN STOPPED DEAD IN ITS TRACKS BY THE RICH AND POWERFUL AMERICAN MEDICAL ASSOCIATION THE DOCTORS ASSOCIATION AFTER ALL BEAT BACK HEALTHINSURANCE PROPOSALS FROM PRESIDENT ROOSEVELT'S COMMITTEE ON ECONOMIC SECURITY DEFEATED PRESIDENT TRUMAN'S NATIONAL HEALTH PROGRAM AND DESTROYED PRESIDENT CARTER'S HOSPITAL COSTCONTAINMENT MEASURES THEY HAD ENOUGH CLOUT TO FORESTALL ANY MOVEMENT INCLUDING HEARINGS RECALLS MAX FINE WHO WAS EXECUTIVE DIRECTOR OF THE COMMITTEE FOR NATIONAL HEALTH INSURANCE WHICH BEGAN IN THE LATE 1960S AND CONTINUED INTO THE CARTER YEARS BUT THIS TIME AS PRESIDENT CLINTON PREPARES TO DO BATTLE WITH A CRUSH OF SPECIAL INTERESTS OVER THE RESTRUCTURING OF THE AMERICAN HEALTH SYSTEM THE DOCTORS ARE LYING LOW IN PART THAT'S A SIGN OF JUST HOW BAD THE HEALTH SYSTEM HAS BECOME MANY DOCTORS ARE NOW WILLING TO EMBRACE IN FACT URGE CHANGE FOR YEARS THE HEALTH SYSTEM WAS GOOD TO DOCTORS IT MADE THEM PROSPEROUS GAVE THEM STATUS AND INFLUENCE IN THEIR COMMUNITIES AND BROUGHT THEM PROFESSIONAL FULFILLMENT BETWEEN 1983 AND 1991 PHYSICIANS' MEAN INCOME NEARLY DOUBLED TO 170000 FROM 88000 A YEAR ACCORDING TO THE AMA THERE IS NO QUESTION THAT MR CLINTON WILL TRY TO PUT AN END TO THAT KIND OF RISE AT LEAST FOR HIGHPRICED SPECIALISTS LIKE SURGEONS AND ANESTHESIOLOGISTS ALREADY THE PRESIDENT IS PROPOSING TO SQUEEZE BILLIONS OF DOLLARS OUT OF MEDICARE PAYMENTS TO DOCTORS OVER THE NEXT FIVE YEARS TO REDUCE THE FEDERAL BUDGET DEFICIT THE NATIONAL HEALTHEXPENDITURE BUDGET THAT IS LIKELY TO BE INCLUDED IN HIS HEALTHCARE PLAN WILL PUT A LID ON DOCTORS' FEES BEYOND THE MEDICARE RESTRICTIONS AND IN THE SHORT TERM MR CLINTON IS CONSIDERING PUTTING A GOVERNMENT CLAMP ON MEDICAL COSTS TO KEEP THEM FROM ESCALATING OUT OF CONTROL WHILE HIS PLAN IS BEING DEBATED PASSED AND PUT INTO EFFECT ONE OPTION ADMINISTRATION OFFICIALS ARE SERIOUSLY CONSIDERING IS TEMPORARILY APPLYING MEDICARE'S REIMBURSEMENT RATES TO PRIVATE INSURERS CURRENTLY MEDICARE REIMBURSES DOCTORS AT ONLY ABOUT 90 THE RATE OF PRIVATE INSURERS ONE OF THE AIMS OF MR CLINTON'S HEALTH PLAN WILL BE TO ESTABLISH INCENTIVES FOR DOCTORS AND HOSPITALS TO BAND TOGETHER INTO LARGE HEALTHCARE NETWORKS THAT PROVIDE ALL THE SERVICES A PATIENT NEEDS FOR A PREPAID FEE THAT COULD MEAN AN END TO THE TRADITIONAL PRIVATE PRACTICE SOME NETWORKS MIGHT EVEN PUT DOCTORS ON SALARY NONE OF THESE IDEAS ARE WILLINGLY ACCEPTED BY THE MEDICAL ESTABLISHMENT BUT IN RECENT YEARS THE PRACTICE OF MEDICINE HAS BECOME ENCUMBERED BY AN OVERWHELMING MASS OF PAPERWORK SECONDGUESSING BY INSURANCE COMPANIES ANXIOUS TO AVOID SPENDING GOVERNMENT OVERSIGHT INCREASING BAD DEBT FROM PATIENTS WHO HAVE LOST INSURANCE OR HAVE INADEQUATE COVERAGE AND COURTS PURSUING MALPRACTICE CHARGES THE PRESENT SYSTEM IS A DISASTER FOR EVERYONE SAYS STEVEN ROSENBERG A DERMATOLOGIST IN WEST PALM BEACH FLA PHYSICIANS HAVE NOT SUFFERED MONETARILY BUT THEY'VE SUFFERED ADMINISTRATIVELY AND CERTAINLY SUFFERED IN THEIR IMAGE THE DOCS I TALK TO ARE REALLY FED UP WITH THIS SYSTEM SAYS ED HOWARD EXECUTIVE VICE PRESIDENT OF THE ALLIANCE FOR HEALTH REFORM A NONPARTISAN GROUP SET UP TO INFORM OPINION LEADERS ON HEALTH REFORM ISSUES IN A SWITCH AKIN TO THE NATIONAL RIFLE ASSOCIATION PUSHING FOR GUN CONTROL THE AMA IS NOW AMONG THE LOUDEST PROPONENTS OF CHANGING THE HEALTHCARE SYSTEM VIRTUALLY ALL PHYSICIAN GROUPS FROM SURGEONS TO PEDIATRICIANS ARE CALLING FOR CHANGES TO THE HEALTH SYSTEM TO ENSURE UNIVERSAL ACCESS TO CARE THE FACT IS DOCTORS KNOW THEIR TIME HAS COME THE CLAMOR FOR OVERHAULING THE HEALTH SYSTEM HAS REACHED THE POINT WHERE CHANGE IS GOING TO HAPPEN WHETHER DOCTORS LIKE IT OR NOT AND IF THEY DON'T JOIN THE BANDWAGON THE DAMAGE THEY SUFFER WILL LIKELY BE EVEN WORSE ONCE CHANGE BECOMES PERCEIVED AS INEVITABLE PEOPLE WANT TO SEE CHANGE TAILORED TO THEIR OWN NEEDS AND NEED TO BE A PART OF THE DISCUSSION ONCE IT STARTS MR HOWARD SAYS IF YOU'RE GOING TO BE AT THE TABLE YOU NEED SOME FORM OF REFORM CREDENTIALS THE SWITCH IN DOCTORS' ATTITUDES BY NO MEANS SUGGESTS PHYSICIANS WILL ENTHUSIASTICALLY ENDORSE MOST OF THE REFORM MEASURES THE WHITE HOUSE PROPOSES SOME ROUGH FIGHTS MAY WELL BE IN STORE IN PARTICULAR WE DON'T LIKE THE CONCEPT OF GLOBAL BUDGETS DECLARES DR JAMES TODD THE AMA'S EXECUTIVE VICE PRESIDENT REFERRING TO MR CLINTON'S PLAN FOR A NATIONAL BUDGET TO LIMIT PUBLIC AND PRIVATE HEALTH SPENDING BUT EVEN WHEN BATTLING AGAINST GLOBAL BUDGETS THE DOCTORS AREN'T UNITED LAST FALL THE AMERICAN COLLEGE OF PHYSICIANS THE NATION'S SECONDLARGEST DOCTORS GROUP MADE AN UNPRECEDENTED BREAK WITH THE AMA BY ANNOUNCING IT HAD DECIDED TO SUPPORT A GOVERNMENTIMPOSED CEILING ON HEALTHCARE SPENDING THE AMA IMMEDIATELY CRITICIZED THE MOVE AND AT ITS ANNUAL MEETING LAST FALL PASSED A RESOLUTION OPPOSING A NATIONAL HEALTHCARE BUDGET THE COLLEGE OF PHYSICIANS IMMEDIATELY DISTRIBUTED NEWS RELEASES DENOUNCING THE AMA'S POSITION WILLIS MADREY THE PHYSICIANS COLLEGE'S PRESIDENT WHO IS ALSO A MEMBER OF THE AMA PLAYS DOWN THE TWO GROUPS' DISAGREEMENT ON THE ISSUE HE INSISTS MEDICINE IS NOT DIVIDED WE HAVE TRIED NOT TO BE PITTED AGAINST THE AMA HE SAYS THESE ARE JUST OUR IDEAS OUR CONTRIBUTIONS TO THE NATIONAL DEBATE BUT WITH THE MEDICAL COMMUNITY FRAGMENTED DOCTORS' INFLUENCE WILL BE FURTHER DILUTED DOCTORS USED TO BE A UNITED VOICE AND THEY SPOKE THROUGH THE AMA BUT THE AMA'S MEMBERSHIP HAS SLIPPED IN RECENT YEARS THAT'S LARGELY BECAUSE OF THE PROLIFERATION OF MEDICAL SPECIALTIES AND SOCIETIES THAT REPRESENT THEM EACH WITH DIFFERENT TURF TO PROTECT THE SPECIALTY SOCIETIES NEVER SPOKE OUT IN ANY OTHER ERA THAT I CAN RECALL SAYS MR FINE WHO NOW HEADS A HEALTHBENEFITS CONSULTING FIRM IN BETHESDA MD TODAY THEY DO THE COLLEGE OF PHYSICIANS WHICH REPRESENTS ABOUT 77000 INTERNISTS IS THE LARGEST MEDICAL SPECIALTY SOCIETY IN THE COUNTRY THE AMERICAN ACADEMY OF FAMILY PHYSICIANS ALSO FAVORS A NATIONAL HEALTH SPENDING CAP VIRTUALLY EVERY SPECIALTY GROUP NOW HAS ISSUED ITS OWN PROPOSAL FOR REVISING THE HEALTHCARE SYSTEM I THINK THE WHOLE DYNAMIC OF PHYSICIAN INVOLVEMENT HAS CHANGED SAYS SEN EDWARD KENNEDY D MASS WHO HAS BEEN PUSHING FOR AN OVERHAUL OF THE HEALTH SYSTEM SINCE THE 1960S THE BIGGEST TURNAROUND IN THE WHOLE HEALTHREFORM DEBATE HAS COME FROM THE AMA WE'RE TRYING IN EVERY WAY POSSIBLE TO MAKE CONTACTS WITH THE RIGHT PEOPLE AND TO EXPRESS THAT WE WANT TO BE INVOLVED EXPECT TO BE INVOLVED AND INTEND TO BE CONSTRUCTIVE SAYS DR TODD SUCH A STATEMENT WOULD NEVER HAVE COME FROM PAST AMA LEADERS MANY PEOPLE SAY INDEED MANY INCLUDING PAST ENEMIES OF THE AMA CREDIT DR TODD WITH THE TURNAROUND IN THE AMA'S THINKING A NEW ENGLAND CARDIOLOGIST DR TODD TOOK OVER THE AMA'S TOP EXECUTIVE SPOT IN 1990 SINCE THEN HE HAS BECOME AN INCREASINGLY VIGOROUS VOICE FOR REFORM HE MET WITH BOTH THE REPUBLICAN AND DEMOCRATIC CAMPS ABOUT HEALTH REFORM DURING THE CAMPAIGN EVEN REP PETE STARK D CALIF WHOM THE AMA HAS SPENT HUNDREDS OF THOUSANDS OF DOLLARS OVER THE YEARS TO TRY TO DEFEAT SAYS DR TODD HAS BROUGHT A WILLINGNESS TO PARTICIPATE AND TO COMPROMISE AND CONCILIATE THAT WASN'T THERE BEFORE HE IS MORE RECEPTIVE TO THE IDEA THAT THERE MUST BE CHANGE IF ANY GROUP OF DOCTORS IS GOING TO BE A WINNER IN THE NEW HEALTH SYSTEM IT IS THE PRIMARY CARE PHYSICIANS BECAUSE OF THE EMPHASIS PLACED ON PREVENTIVE CARE BY PRESIDENT CLINTON AND HIS WIFE HILLARY WHO HEADS THE HEALTHREFORM TASK FORCE GENERALIST PHYSICIANS WILL BE IN INCREASED DEMAND IN THE CARE NETWORKS LIKELY TO BE SET UP UNDER THE NEW SYSTEM PRIMARY CARE PHYSICIANS PROBABLY WOULD ACT AS GATEKEEPERS TO THE SPECIALISTS IN ORDER TO REDUCE THE NUMBER OF UNNECESSARY PROCEDURES THAT BLOAT THE COUNTRY'S HEALTH BILL PRIMARY CARE PHYSICIANS HAVE GOT THE BALL THEY'RE GOING TO BE KINGS SAYS PAUL ELLWOOD A PEDIATRICIAN WHO IS ONE OF THE FATHERS OF THE MANAGED COMPETITION THEORY MR CLINTON WANTS TO EMBRACE IN HIS HEALTHCARE PLAN IN FACT HE SAYS THE SAYING GOING AROUND HOSPITAL ADMINISTRATORS THESE DAYS IS GO OUT AND HUG A PRIMARY CARE PHYSICIAN TODAY MEDICARE REIMBURSES PHYSICIANS AN AVERAGE OF 65 OF WHAT PRIVATE INSURERS PAY ACCORDING TO AN OFFICIAL OF THE PHYSICIAN PAYMENT REVIEW COMMISSION WHICH ADVISES CONGRESS ON THE FEDERAL HEALTH PROGRAM'S DOCTOR PAYMENT POLICY THE REIMBURSEMENT RATE VARIES AMONG MEDICAL SPECIALTIES AN ARTICLE TUESDAY INCORRECTLY REPORTED THE MEDICARE REIMBURSEMENT RATE AS 90 SEE RELATED LETTER LETTERS TO THE EDITOR DOCTORBASHING GETS US NOWHERE WSJ MARCH 26 1993 9303020088 9303290102 930329 BUSINESS BRIEF COMMERZBANK AG OPERATING PROFIT ROSE 21 LAST YEAR AT GERMAN BANK COMMERZBANK AG ONE OF GERMANY'S LARGEST BANKS DESCRIBED ITS 1992 RESULTS RELEASED FRIDAY AS BETTER THAN EXPECTED ANALYSTS AGREED AND SAID THE SIZABLE RISK PROVISIONS INCLUDED IN THE YEAR'S BALANCE SHEET SET THE FOUNDATION FOR FURTHER GROWTH IN 1993 AS WELL THE BANK REPORTED GROUP OPERATING PROFIT SURGED 21 TO 221 BILLION MARKS 135 BILLION IN 1992 WHILE PARTIAL OPERATING PROFIT ROSE 16 TO 195 BILLION MARKS IN THE FIRST TWO MONTHS OF THE CURRENT YEAR FULL OPERATING PROFIT HAS EXCEEDED YEARAGO LEVELS WHILE PARTIAL OPERATING PROFIT HAS HELD STEADY CHAIRMAN MARTIN KOHLHAUSSEN DECLINED TO SPECULATE ON THE OUTLOOK FOR THE FULL YEAR CITING THE FRAIL ECONOMY 9303290101 930329 MARKETING & MEDIA MILKEN PLANS TO ESTABLISH EDUCATIONAL TV NETWORK LOS ANGELES MICHAEL MILKEN THE FORMER JUNKBOND KING SAID HE AND ENTERTAINER MICHAEL JACKSON WANT TO START AN EDUCATION NETWORK ON CABLE TELEVISION IN A NEARLY TWOHOUR SPEECH TO EDUCATORS AND BUSINESS EXECUTIVES MR MILKEN MENTIONED THAT MR JACKSON WAS AMONG PEOPLE IN TALKS ABOUT FORMING THE EDUCATION ENTERTAINMENT NETWORK MR MILKEN SAID HIS FAMILY FOUNDATION IS SEEKING PARTNERS WITH EXPERTISE IN EDUCATION COMMUNICATIONS AND ENTERTAINMENT AND HOPES TO SET UP THE NETWORK WITHIN THREE OR FOUR YEARS MR JACKSON COULDN'T BE REACHED FOR COMMENT AFTER THE SPEECH A SPOKESMAN SAID HE PERSONALLY KNEW NOTHING ABOUT THE SINGER'S PLANS WITH MR MILKEN A SPOKESWOMAN FOR MR MILKEN SAID I DON'T THINK THERE'S ANY DEFINITIVE AGREEMENT MICHAEL MILKEN AND MICHAEL JACKSON HAVE KNOWN EACH OTHER FOR A LONG TIME AND THIS IS SOMETHING MICHAEL MILKEN HAS WANTED TO DO FOR A LONG TIME MR MILKEN 46 YEARS OLD SPOKE BEFORE 1000 PEOPLE AT HIS FIRST PUBLIC APPEARANCE SINCE HIS RELEASE FROM A 22MONTH PRISON SENTENCE IN JANUARY HE HAD PLEADED GUILTY TO SIX SECURITIESRELATED FELONIES THE CABLE VENTURE ISN'T PART OF MR MILKEN'S COURTMANDATED 1800HOURAYEAR THREEYEAR COMMUNITY SERVICE OBLIGATION 9303290100 930329 BUSINESS BRIEF ADIA SA FIRM POSTS DEFICIT FOR 1992 ON 03 DROP IN REVENUE ADIA SA A PERSONNEL SERVICES CONCERN ANNOUNCED THAT IT HAD A GROUP LOSS FOR 1992 THE SWISS COMPANY'S 1992 GROUP LOSS WAS 219 MILLION SWISS FRANCS 144 MILLION AFTER A GROUP PROFIT OF 25 MILLION FRANCS IN 1991 REVENUE EASED 03 TO 321 BILLION FRANCS FROM 322 BILLION IN 1991 THE COMPANY SAID IT WOULD SKIP A DIVIDEND FOR 1992 RESULTS AS IT DID IN THE PRIOR YEAR ADIA SAID THE LOSS WAS CAUSED BY OPERATING DIFFICULTIES IN A NUMBER OF MARKETS BY THE COST OF REORGANIZATION AND BY VALUE ADJUSTMENTS IN THE BALANCE SHEET THE REORGANIZATION REQUIRED A PROVISION OF 71 MILLION FRANCS IN 1992 WHILE ADJUSTMENTS TO THE CARRYING VALUES OF ASSETS HELD FOR DISPOSAL AMOUNTED TO 86 MILLION FRANCS 9303290099 930329 WHO'S NEWS PACIFIC TELESIS GROUP PACIFIC TELESIS GROUP SAN FRANCISCO THE PACIFIC BELL TELEPHONE UNIT OF THIS TELECOMMUNICATION CONCERN NAMED SUE SWENSON VICE PRESIDENT AND GENERAL MANAGER OF ITS BAY AREA REGIONAL BUSINESS UNIT EFFECTIVE APRIL 1 MS SWENSON 44 YEARS OLD HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF THE PACTEL CELLULAR SUBSIDIARY FOR THE PAST TWO YEARS SHE SUCCEEDS ARUN SARIN 38 WHO WAS RECENTLY TAPPED TO WORK ON THE STRUCTURE FOR A NEW WIRELESS COMMUNICATIONS COMPANY THAT WILL BE FORMED UNDER PACIFIC TELESIS'S PLANS TO SPIN OFF ITS CELLULAR AND OVERSEAS OPERATIONS FROM ITS TRADITIONAL PHONE BUSINESS MS SWENSON'S DUTIES AT PACTEL CELLULAR WILL BE ASSUMED BY C LEE COX PRESIDENT AND CHIEF EXECUTIVE OF PACTEL CORP PARENT OF PACTEL CELLULAR AND BY LYN DANIELS PACTEL CORP'S CHIEF FINANCIAL OFFICER MR DANIELS 40 WAS ALSO NAMED EXECUTIVE VICE PRESIDENT OF PACTEL CORP 9303290098 930329 BUSINESS BRIEF ASHLAND OIL INC COMPANY WILL POST DEFICIT OF 3 MILLION FOR 2ND QUARTER ASHLAND OIL INC SAID IT EXPECTS TO REPORT A FISCAL SECONDQUARTER LOSS OF 3 MILLION OR FIVE CENTS A SHARE BECAUSE OF THE INDUSTRY'S EXCESS REFINING CAPACITY THE SLUGGISH ECONOMY AND SEASONAL WEAKNESS ON AN OPERATING BASIS ASHLAND'S RESULTS IN THE QUARTER ENDING WEDNESDAY WILL BE WORSE BECAUSE THEY INCLUDE A GAIN OF 16 CENTS A SHARE FROM THE SALE OF AN INLAND WATERWAYS BARGE OPERATION IN THE YEAREARLIER PERIOD THE ASHLAND KY CONCERN HAD A LOSS OF 13 MILLION OR 23 CENTS A SHARE THOSE RESULTS INCLUDED A GAIN OF 12 CENTS A SHARE FROM A FAVORABLE INSURANCE SETTLEMENT BY ARCH MINERAL CORP OF WHICH ASHLAND OWNS 50 ASHLAND SAID ITS NONREFINING BUSINESSES REMAIN PROFITABLE AND IT SAID IT EXPECTS IMPROVED RESULTS FOR THE REST OF THE YEAR AS THE COMPANY ENTERS THE DRIVING SEASON 9303290097 930329 ROHR INC IS GIVEN LOWER DEBT RATINGS FROM MOODY'S AGENCY NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT DOWNGRADED ITS RATING OF ROHR INC'S SUBORDINATED DEBT TO B2 FROM BA3 THE RATINGS SERVICE SAID ITS ACTION WHICH AFFECTS 265 MILLION OF LONGTERM DEBT WAS PROMPTED BY ITS EXPECTATION THAT ROHR'S EARNINGS WILL BE RESTRAINED OVER THE INTERMEDIATE TERM MAKING IT DIFFICULT FOR THE COMPANY TO STRENGTHEN ITS CASH FLOWS AND REDUCE ITS HEAVY DEBT BURDEN MOODY'S ALSO SAID THE DOWNGRADE REFLECTS THE RATING AGENCY'S CONCERN ABOUT THE WEAKENING FINANCIAL CONDITION OF THE AIRLINE INDUSTRY A KEY MARKET FOR ROHR REVENUE FOR THE CHULA VISTA CALIF COMPANY COMES LARGELY FROM SALES OF COMPONENTS FOR COMMERCIAL AND TO A LESSER EXTENT MILITARY JET ENGINES A SPOKESMAN FOR THE COMPANY COULDN'T IMMEDIATELY BE REACHED FOR COMMENT THE RATINGS AGENCY ALSO CITED ITS CONCERN ABOUT THE POTENTIAL IMPACT OF MONETARY PENALTIES FROM A US GOVERNMENT INVESTIGATION OF ROHR'S COMPONENT TESTING PRACTICES ROHR'S FINANCIAL DIFFICULTIES DEVELOPED OVER THE LAST SEVERAL YEARS AS THE COMPANY SHIFTED ITS MARKETING STRATEGY TO PROGRAM RISKSHARING FROM TRADITIONAL SUBCONTRACTING MOODY'S SAID THE RATINGS AGENCY SAID IT BELIEVES THAT WHILE THIS RISKSHARING STRATEGY HAS BEEN TERMINATED ITS FINANCIAL AFTERMATH TOGETHER WITH ROHR'S INVOLVEMENT IN SEVERAL NEW PROGRAMS WHICH ARE AT THE INVESTMENT STAGE AND THE EXPECTED FURTHER DECLINE OF ROHR'S MARKETS WILL PREVENT ROHR FROM MATERIALLY REDUCING ITS DEBT LEVELS 9303290096 930329 FIAT DENIES EXISTENCE OF SECRET SWISS FUND FOR POLITICAL BRIBES SPECIAL TO THE WALL STREET JOURNAL MILAN FIAT SPA SAID ANY ILLICIT PAYMENTS TO POLITICAL PARTIES WERE MADE ON THE INITIATIVE OF INDIVIDUAL MANAGERS PRESSURED BY EXTERNAL CIRCUMSTANCES IF SOME MANAGERS FOUND THEMSELVES WORKING IN AN ENVIRONMENT IN WHICH DISTORTED PRACTICES EXISTED IN THE SYSTEM OF SUPPLIES TO THE PUBLIC SECTOR THEY HAD TO SUBMIT TO THE EVER MORE PRESSING CONDITIONS THAT THE SYSTEM OF CONTRACTS AND SUPPLIES IMPOSED THE AUTO MAKER SAID IN A STATEMENT FRIDAY FIAT WAS REACTING TO REPORTS THE COMPANY ALLEGEDLY HAD USED A SECRET SWISS BANK ACCOUNT TO MAKE ILLICIT PAYMENTS TO POLITICAL PARTIES THE COMPANY DENIED THE EXISTENCE OF ANY FOREIGN SLUSH FUNDS AND SAID ALL FUNDS WERE HELD BY REGULARLY OPERATING SUBSIDIARIES ABROAD THE STATEMENT SAID THAT THESE FUNDS WERE SUBJECT TO THE NORMAL AUTONOMOUS MANAGEMENT OF THESE COMPANIES THE COMPANY POINTED OUT THAT 97 OF FIAT'S BUSINESS WAS CONDUCTED WITH THE PRIVATE SECTOR SO THAT SUCH ACCUSATIONS ARE TO DO WITH VERY MINOR PARTS OF THE BUSINESS FRANCESCO PAOLO MATTIOLI CHIEF FINANCIAL OFFICER OF FIAT AND ANTONIO MOSCONI CHAIRMAN OF FIAT'S INSURANCE SUBSIDIARY TORO ASSICURAZIONI SPA REMAIN IN PRISON FOR QUESTIONING IN CONNECTION WITH ALLEGED CORRUPTION 9303290095 930329 GIBSON IS SENTENCED TO 33 MONTHS IN JAIL FOR CHEATING AIRLINE DALLAS WILLIAM E GIBSON A ONETIME PRESIDENTIAL ADVISER AND FORMER BANK AND THRIFT EXECUTIVE WAS SENTENCED TO 33 MONTHS IN PRISON AND ORDERED TO PAY A TOTAL OF 167000 FOR DEFRAUDING AN AIRLINE AND BANK IN A TICKETSWITCHING SCHEME AFTER HEARING NEARLY A FULL DAY OF TESTIMONY IN THE CASE US DISTRICT JUDGE JERRY BUCHMEYER ORDERED MR GIBSON TO SERVE THE PRISON TERM FOLLOWED BY THREE YEARS OF SUPERVISORY LEAVE THE JUDGE ALSO TOLD MR GIBSON TO PAY RESTITUTION OF 53000 TO THE AIRLINE AND THE BANK A FINE OF 60000 AND A PAYMENT OF 54000 TO COVER THE COSTS OF HIS CONFINEMENT AND SUPERVISORY LEAVE A FEDERAL JURY LAST YEAR CONVICTED MR GIBSON 48 YEARS OLD ON CHARGES OF DEFRAUDING AMR CORP'S AMERICAN AIRLINES OF 200000 AND AMERICAN FEDERAL BANK A DALLAS THRIFT OF 43000 WHILE COMMUTING BETWEEN DALLAS AND CHICAGO WHERE HIS FAMILY LIVED MR GIBSON SWITCHED VALID FULLFARE TICKETS AND EXPIRED DISCOUNT TICKETS HE HAD HOARDED SINCE 1986 HE LATER OBTAINED REFUNDS FROM THE AIRLINE FOR THE UNUSED FULLFARE TICKETS AND REIMBURSEMENTS FROM THE THRIFT WHERE HE WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER UNTIL 1990 FOR TRAVEL EXPENSES DURING HIS TRIAL MR GIBSON TESTIFIED THE AIRLINE TICKETS WERE ROUTINELY UPGRADED BY THE AIRLINE BECAUSE HE WAS A FREQUENT FLIER HE ALSO CLAIMED THAT THE CRIMINAL CHARGES WERE FILED IN RETALIATION FOR A DISPUTE HE HAD WITH THE AIRLINE OVER THE LARGE AMOUNT OF FREQUENTFLIER MILEAGE HE HAD AMASSED AN ATTORNEY FOR MR GIBSON DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT MR GIBSON WAS ONCE SENIOR STAFF ECONOMIST ON PRESIDENT NIXON'S COUNCIL OF ECONOMIC ADVISERS AND LATER HELD HIGHRANKING POSITIONS WITH CHASE MANHATTAN BANK SMITH BARNEY HARRIS UPHAM & CO MCGRAWHILL INC THE NOWDEFUNCT REPUBLICBANK CORP AND CONTINENTAL ILLINOIS CORP IN CHICAGO BEFORE LEADING A GROUP THAT PURCHASED AMERICAN FEDERAL AN AMALGAM OF SEVERAL FAILED TEXAS THRIFTS 9303290094 930329 BUSINESS BRIEF GIORDANO HOLDINGS LTD EARNINGS JUMPED 35 IN '92 TAIWAN MARKET LED GAIN GIORDANO HOLDINGS LTD SAID ITS NET PROFIT SURGED 35 IN 1992 FUELED BY GROWTH IN ITS THREE MAJOR RETAILING MARKETS HONG KONG SINGAPORE AND TAIWAN WITH TAIWAN TURNING IN A 74 JUMP IN SALES LAST YEAR PROFIT WAS 1151 MILLION HONG KONG DOLLARS US149 MILLION UP FROM HK851 MILLION VOLUME SURGED 42 TO HK166 BILLION THE GROUP OPENED 31 DIRECTLY MANAGED OUTLETS IN 1992 BRINGING THE TOTAL TO 191 RETAIL SQUARE FOOTAGE MEANWHILE SURGED 39700 SQUARE FEET TO 139500 MUCH OF THE EXPANSION CAME IN TAIWAN PARTLY ACCOUNTING FOR THE UPSURGE IN SALES THE COMPANY ALSO CITED IMPROVEMENTS IN EFFICIENCY AS HELPING BOOST SALES IN HONG KONG GIORDANO PLANS TO FOCUS ON EXPANDING STORES RATHER THAN OPENING NEW OUTLETS 9303290093 930329 MARKETING & MEDIA GLENN JONES TO OFFER CABLE TV NETWORK ON COMPUTER SCIENCE NEW YORK GLENN JONES THE CABLE OPERATOR WHO OFFERED COUCH POTATOES A CHANCE TO EARN COLLEGE DEGREES THROUGH TV IS LAUNCHING A NETWORK AIMED AT VIEWERS CONFOUNDED BY COMPUTERS THE NEW CABLE NETWORK JONES COMPUTER NETWORK WILL OFFER HOWTO PROGRAMS SHOWS ABOUT NEW COMPUTER SOFTWARE POSSIBLY EVEN SOME CALLIN TALK SHOWS EAGER VIEWERS WILL GET A CHANCE TO EARN A COLLEGE DEGREE IN COMPUTER SCIENCE FROM GEORGE WASHINGTON UNIVERSITY WE NEED TO PREVENT OURSELVES FROM BECOMING PEASANTS IN THE INFORMATION AGE SAYS MR JONES CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF JONES INTERCABLE INC TECHNOLOGY IN THIS AREA KEEPS GENERATING AT SUCH A RAPID RATE AND IT NEEDS TO BE EXPLAINED JONES INTERCABLE BASED IN ENGLEWOOD COLO IS THE EIGHTH LARGEST CABLE SYSTEM IN THE COUNTRY THE JONES COMPUTER NETWORK WILL FIRST AIR WITHIN THE NEXT TWO MONTHS AS A TWO OR THREEHOUR BLOCK ON MIND EXTENSION UNIVERSITY A SIXYEAROLD NETWORK STARTED BY MR JONES THAT TELECASTS ACCREDITED COLLEGE COURSES FROM NEARLY TWO DOZEN UNIVERSITIES TO 23 MILLION CABLE HOMES BY YEAR END JONES COMPUTER NETWORK WILL BE SPUN OFF AS A SEPARATE CHANNEL AIRING 18 TO 24 HOURS A DAY EVENTUALLY THE NEW NETWORK COULD OFFER TELEPHONE ACCESS TO A CAROUSEL OF TEACHERS WHO COULD ANSWER QUESTIONS ABOUT COMPUTERS SAID MR JONES AND FUTURE PROGRAMMING COULD INCLUDE INTERACTIVE AND DATA SERVICES 9303290092 930329 BUSINESS BRIEF ZALE CORP BANK OF BOSTON WILL PROVIDE UP TO 175 MILLION IN CAPITAL ZALE CORP DALLAS SAID THE BANK OF BOSTON WILL PROVIDE AS MUCH AS 175 MILLION OF WORKING CAPITAL TO FINANCE ITS EMERGENCE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS THE JEWELRY RETAILER SAID THE BANK'S GOLD LOAN PRICING FEATURE WHICH ALLOWS THE COMPANY TO BORROW AT AN INTEREST RATE WELL BELOW THE PRIME AND MARKET RATES MADE THE OFFER THE MOST COST EFFECTIVE OF THREE COMPETING BIDS THE FINANCING COMMITMENT IS UNDERWRITTEN BY ABN AMRO BANK NV SOCIETE GENERALE RHODE ISLAND HOSPITAL TRUST AND BANK OF BOSTON ZALE WHICH SOUGHT COURT PROTECTION FROM CREDITORS IN JANUARY 1992 EXPECTS TO SUBMIT ITS REORGANIZATION PLAN TO A VOTE OF CREDITORS NEXT MONTH 9303290091 930329 ECONOMY DEMOCRATS SEEK SENATE ACCORD ON SPENDING WHITE HOUSE TRIES TO CLEAR WAY FOR 16 BILLION BILL TO STIMULATE ECONOMY BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE AND CONSERVATIVE DEMOCRATS HOPE TO REACH A COMPROMISE THIS WEEK THAT WILL CLEAR THE WAY FOR ENACTMENT OF A 16 BILLIONPLUS ECONOMICSTIMULUS BILL STALLED IN THE SENATE THE MEASURE WHICH HAS ALREADY PASSED THE HOUSE CARRIES WITH IT 4 BILLION TO FINANCE EXTENDED FEDERAL BENEFITS FOR LONGTERM UNEMPLOYED WORKERS THE CLINTON ADMINISTRATION WANTS THIS MONEY IN HAND BEFORE CONGRESS ADJOURNS THIS WEEKEND FOR ITS SPRING RECESS CONSERVATIVE DEMOCRATS WHOSE VOTES ARE NEEDED FOR FINAL SENATE PASSAGE HAVE SOUGHT TO USE THEIR LEVERAGE TO DELAY SOME OF THE ACCOMPANYING SPENDING UNTIL AFTER PRESIDENT CLINTON'S DEFICITREDUCTION PLAN IS IMPLEMENTED THIS SUMMER AFTER FIRST DEMANDING AN AMENDMENT TO ENFORCE SUCH A DELAY THIS FACTION SIGNALED FRIDAY IT WOULD INSTEAD ACCEPT A LETTER FROM THE WHITE HOUSE ADDRESSING THEIR CONCERNS THE TALKS WHICH CONTINUE TODAY TURN ON FINDING WORDING ACCEPTABLE TO BOTH SIDES YOU DON'T HAVE TO HAVE LEGISLATION THERE ARE OTHER WAYS TO DO IT SAID SEN JOHN BREAUX D LA WHO HAS SOUGHT THE DELAY WITH SEN DAVID BOREN D OKLA WITHOUT THE VOTES TO WIN OUTRIGHT THE TWO MEN WERE FORCED TO STALL ACTION ON THE BILL LAST WEEK THE IMPASSE HOWEVER IS EMBARRASSING TO ALL SIDES AND HAS SORELY PROVOKED MR BOREN'S PAST PATRON SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD THERE WAS A TENSE EXCHANGE ON THE SENATE FLOOR FRIDAY BETWEEN MR BYRD IMPATIENT TO ACT AND SENATE MAJORITY LEADER GEORGE MITCHELL WHO HAS SOUGHT TO BUY TIME FOR THE NEGOTIATIONS BEING CARRIED ON SEPARATELY BY THE WHITE HOUSE MR BYRD HIMSELF MET LATER IN THE DAY WITH PRESIDENT CLINTON WHEN HIS OPPONENTS STAYED AWAY FROM THE FLOOR FRIDAY MR BYRD LECTURED ON THE NEED TO STAND WITH THE PRESIDENT WHERE ARE MY FELLOW SENATORS WHO HAVE BEEN SAYING GIVE US A LEADER' THE WEST VIRGINIAN DEMANDED IS HIS OWN PARTY GOING TO FAIL HIM NOW ARE WE GOING TO PUT CHAINS ON HIM ARE WE GOING TO WEIGH HIM DOWN WITH OUR OWN PRIDE FOR CONSERVATIVE DEMOCRATS THE STANDOFF ILLUSTRATES THE LARGER DILEMMA OF HOW HARD TO PUSH THE NEW PRESIDENT WHOM MANY HOPE WILL BE THEIR ALLY AND STEER THE PARTY IN A CENTRIST DIRECTION THUS WHILE SOME SOUTHERN DEMOCRATS CRIED FOUL WHEN THE HOUSE LEADERSHIP BLOCKED EFFORTS TO AMEND THE BILL THERE TWO WEEKS AGO OTHERS WERE QUIETLY CONTENT TO BE RELIEVED OF A CHOICE THAT WOULD FORCE THEM TO CONFRONT MR CLINTON SIMILARLY THE DELAY PROPOSED BY SENS BREAUX AND BOREN IS SO INNOCUOUS THAT IT HAS SO FAR WEAKENED THEIR ABILITY TO WIN OVER REPUBLICANS WHO CAUCUS TODAY ON THE ISSUE MR BYRD BY CONTRAST IS BURDENED BY NONE OF THIS UNCERTAINTY AND HAS PERSONALIZED THE BATTLE TO BE A CHALLENGE NOT ONLY TO THE PRESIDENT BUT ALSO TO HIMSELF IN AN EXCHANGE LAST WEEK WHICH MINGLED PERSIAN HISTORY WITH A SCHOOLBOY POEM OF HIS OWN YOUTH THE SENATOR LIKENED MR CLINTON TO A YOUNG BIRD WHOSE WINGS WERE AT RISK OF BEING CRUELLY BROKEN BEFORE TAKING FLIGHT MINUTES LATER THE 75YEAROLD PATRIARCH CAST HIMSELF AS THE SAME YOUNG BIRD ONLY THE EFFECT NOW WAS TO TAUNT HIS OPPONENTS AND IMPLICITLY WARN THEY MIGHT PAY A PRICE FOR FRUSTRATING HIM MY WINGS HAVE NOT YET FULLY SPROUTED SAID MR BYRD SUGGESTING HE WAS STILL A NOVICE IN THE ROLE OF APPROPRIATIONS COMMITTEE CHAIRMAN I HOPE NO ONE DECIDES TO BREAK THIS LITTLE BIRD'S PINIONS THIS EARLY 9303290090 930329 BUSINESS BRIEF CIE FINANCIERE DE PARIBAS FIRM SAYS RETURN TO PROFIT IN 1992 WAS INSUFFICIENT' CIE FINANCIERE DE PARIBAS'S CHIEF EXECUTIVE OFFICER ANDRE LEVYLANG SAID FRIDAY THAT THE COMPANY'S RETURN TO PROFITABILITY IN 1992 SHOWED ENCOURAGING PROGRESS BUT WAS STILL VERY INSUFFICIENT THE FRENCH FINANCIAL AND INDUSTRIAL CONCERN SWUNG BACK TO A NET GROUP PROFIT OF 886 MILLION FRANCS 159 MILLION AFTER POSTING A 184 MILLIONFRANC LOSS ITS FIRST IN 1991 IN A PRESENTATION BEFORE ANALYSTS MR LEVYLANG WAS EXTREMELY CAUTIOUS IN HIS PREDICTIONS FOR 1993 GIVEN THE WEAKENED ECONOMY IN FRANCE AND SOUTHERN EUROPE AND THE FRAGILE RECOVERY IN THE UK BUT HE SAID THAT THE PROGRESS ACHIEVED IN 1992 SHOULD CONTINUE THE GROUP HE SAID WILL FOCUS ON CUTTING BACK ITS RISK INVESTING WHERE THE GROUP IS STRONGEST COST CONTAINMENT AND DEVELOPMENT OF ITS PORTFOLIO OF STAKES IN COMPANIES WITH STRONG DEVELOPMENT POTENTIAL 9303290089 930329 CHINA IS PREPARING TO BUY US OIL GEAR BEIJING PAPER REPORTS BEIJING AP CHINA IS PREPARING TO ORDER 200 MILLION OF OIL PROSPECTING AND DEVELOPMENT EQUIPMENT FROM US COMPANIES OFFICIAL NEWS REPORTS SAID FRIDAY THE CHINA DAILY SAID A SERIES OF CONTRACTS AND PURCHASE AGREEMENTS WILL BE SIGNED THIS WEEK WHEN WANG TAO PRESIDENT OF THE CHINESE NATIONAL PETROLEUM CORP VISITS THE US HE ALSO WILL ATTEND A SYMPOSIUM IN HOUSTON ON USCHINESE COOPERATION IN THE OIL INDUSTRY WHERE HE WILL TRY TO DRUM UP INTEREST IN EXPLORING FOR OIL IN NEWLY OPENED INLAND AREAS OF CHINA THE XINHUA NEWS AGENCY SAID CHINA BEGAN TAKING BIDS THIS MONTH FOR EXPLORATION AND DEVELOPMENT RIGHTS IN SEVERAL INLAND LOTS TOTALING 72730 SQUARE KILOMETERS INCLUDING PORTIONS OF THE TARIM BASIN IN FAR WESTERN CHINA BELIEVED TO HOLD THE COUNTRY'S RICHEST RESERVES THE CHINA DAILY SAID THAT AT LEAST 48 OIL COMPANIES FROM 15 COUNTRIES HAVE ENTERED THE BIDDING SO FAR INCLUDING 15 US COMPANIES SEPARATELY XINHUA REPORTED THAT USBASED TEXACO INC HAS SEALED A DEAL WITH STATEOWNED SHANGHAI PETROLEUM CORP TO JOINTLY DEVELOP THE PINGHU OILFIELD IN THE EAST CHINA SEA QUOTING OFFICIAL SOURCES XINHUA SAID THAT BOTH PARTIES SIGNED AN AGREEMENT IN SHANGHAI AND THAT TEXACO WILL PROVIDE TECHNOLOGY TO DEVELOP THE OILFIELD 9303290088 930329 LAW LEGAL BEAT HOTELS BECOME INHOSPITABLE TO CANCELLATIONS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL FACED WITH AN EPIDEMIC OF CONVENTION CANCELLATIONS THE HOSPITALITY INDUSTRY IS FINDING IT CAN'T ALWAYS LIVE UP TO ITS NAME MANY HOTELIERS INCLUDING SOME PRESTIGE CHAINS HAVE STARTED SUING GROUPS THAT PLAN AND THEN CANCEL CONVENTIONS IN THE PAST MOST HOTELS STRAINED TO AVOID SUCH DISPUTES PREFERRING TO SWALLOW CANCELLATION LOSSES RATHER THAN OFFEND CONVENTION CLIENTS BUT FORGIVENESS IS A LUXURY SERVICE SOME HOTELS CAN NO LONGER AFFORD TO PROVIDE THE MESSAGE NOW IS THAT WE WANT TO GIVE YOU WARM HOSPITALITY WE WANT TO GIVE YOU A FIRSTCLASS MEETING BUT WE ALSO EXPECT YOU TO HONOR YOUR PROMISES TO US SAYS STEVEN RUDNER A PHOENIX LAWYER FOR SEVERAL MAJOR HOTEL CHAINS INCLUDING HYATT CORP AND PRINCESS HOTELS INTERNATIONAL IN A CASE FILED LAST MONTH FOR EXAMPLE FOUR DES MOINES IOWA HOTELS INCLUDING TWO HOLIDAY INNS AND AN EMBASSY SUITES SUED THE BUSINESS PROFESSIONALS OF AMERICA FOR CANCELING A CONVENTION CONTRACT THAT RESERVED MORE THAN 3000 ROOMS BUSINESS PROFESSIONALS IS A COLUMBUS OHIO VOCATIONALEDUCATION ASSOCIATION WHEN THE ASSOCIATION AGREED TO HOLD THE CONFERENCE IN DES MOINES IT HAD A BOARD MEMBER FROM IOWA ACCORDING TO STANLEY THOMPSON A LAWYER FOR THE HOTELS THAT BOARD MEMBER DIED PROMPTING BUSINESS PROFESSIONALS TO SWITCH ITS MEETING TO SAN FRANCISCO MR THOMPSON SAYS BUSINESS PROFESSIONALS CONTENDS THE SUIT WASN'T FILED IN THE CORRECT COURT AND IS SEEKING TO HAVE THE CASE DISMISSED ACCORDING TO JONATHAN HOWE A LAWYER FOR THE GROUP SHELVING A DEAD BOARD MEMBER'S PET PROJECT MAY SOUND PETTY BUT LAWYERS SAY IT IS TYPICAL OF THE REASONS SOME CONVENTIONS ARE CANCELED BECAUSE GROUPS USUALLY NEGOTIATE CONVENTION CONTRACTS YEARS IN ADVANCE A GROUP OFTEN HAS NEW LEADERS WHEN THE TIME FOR ITS MEETING FINALLY ROLLS AROUND THE NEW LEADERS MAY THEN DECIDE I DON'T REALLY WANT TO GO TO SAN DIEGO OR WORSE MY SPOUSE DOESN'T WANT TO GO TO SAN DIEGO AND I THINK WE OUGHT TO MOVE THE CONVENTION TO MIAMI' SAYS JED MANDEL A CHICAGO HOSPITALITY LAWYER UNCONTROLLABLE EVENTS SUCH AS EARTHQUAKES AND AIRLINE STRIKES ALSO CAN TRIGGER CANCELLATIONS A DECADE AGO CONVENTIONCANCELLATION LAWSUITS WERE RARE THEN IN 1986 THE INDUSTRY WATCHED FIVE DENVER HOTELS WAGE AN UNUSUALLY PUBLIC BATTLE AGAINST THE AMERICAN SOCIETY FOR CELL BIOLOGY THE GROUP HAD RESERVED HUNDREDS OF ROOMS FOR ITS 1986 CONVENTION THEN CANCELED LESS THAN A YEAR BEFORE THE SCHEDULED DATE THE ENSUING LAWSUIT WAS AN ALERT TO THE INDUSTRY THAT ASSOCIATIONS MAY IN FACT BE HELD RESPONSIBLE WHEN THEY CANCEL AND DON'T HAVE ANY JUSTIFICATION FOR DOING SO SAYS SCOTT CRABTREE WHO REPRESENTED THE DENVER HOTELS ONE OF THE HOTELS WON A 50000 JUDGMENT AGAINST THE GROUP AND THE CASE THEN SETTLED OUT OF COURT MR CRABTREE SAYS SINCE THEN OVERBUILDING OF HOTEL SPACE AND RECESSIONARY PRESSURES HAVE MADE HOTELS HUNGRIER FOR CONVENTION DOLLARS SHEDDING THEIR WHITEGLOVE IMAGE MANY ARE ADOPTING A HARDER LINE TOWARD FICKLE CONVENTIONEERS IF YOU'RE FAT AND HAPPY AND MAKING PLENTY OF MONEY YOU DON'T SUE AS READILY AS WHEN YOU NEED MONEY SAYS CHESTER MERRITT A VICE PRESIDENT AT THE AMERICAN SOCIETY OF ASSOCIATION EXECUTIVES WHICH ESTIMATES THAT ASSOCIATIONS SPEND ABOUT 26 BILLION A YEAR ON MEETINGS AND CONVENTIONS HOTELS ALSO HAVE BEEN AFFECTED OF LATE BY CUTBACKS IN CORPORATE TRAVEL BUDGETS A DEVELOPMENT THAT HAS CAUSED UNUSUALLY HIGH CANCELLATION RATES AT HYATT FOR EXAMPLE IN THE PAST 18 MONTHS ABOUT 20 OF THOSE RESERVING ROOMS FOR CONVENTIONS HAVE EITHER CANCELED OR FAILED TO SHOW UP ACCORDING TO JAMES EVANS SENIOR VICE PRESIDENT FOR SALES ANYTHING ABOVE 8 SETS OFF AN ALARM HE SAYS EVEN WITH ALARM BELLS RINGING HOTELIERS STILL APPEAR MORE RELUCTANT THAN OTHER PLAINTIFFS TO HALE THEIR ADVERSARIES INTO COURT LAWYERS SAY THAT ALTHOUGH CONVENTIONRELATED LAWSUITS ARE ON THE RISE MORE THAN 95 OF CANCELLATION DISPUTES DON'T END UP IN COURTS MR RUDNER FOR EXAMPLE HAS REPRESENTED HOTELS IN MORE THAN 250 CONVENTIONCANCELLATION DISPUTES ALMOST ALL OF THOSE SETTLED AND IN ALL BUT 20 OF THEM NO LAWSUIT WAS EVER FILED MY CLIENTS ARE IN THE BUSINESS OF BEING NICE TO PEOPLE AND THEY DON'T WANT TO SUE ANYBODY IF THEY CAN AVOID IT MR RUDNER SAYS BUT A HOTELIER CAN LAND IN COURT WITH ITS WOULDBE PATRON EVEN IF THE HOTEL DOES NOTHING MORE THAN THREATEN TO ENFORCE A CONTRACT IN 1991 HARVARD UNIVERSITY CANCELED PLANS FOR BOSTON TO HOST THE INTERNATIONAL CONFERENCE ON AIDS THE UNIVERSITY HAD ALREADY CONTRACTED FOR ROOMS FROM THREE HOTEL CONCERNS MARRIOTT HOTELS INC SHERATON BOSTON CORP AND SAUNDERS HOTELS CO AFTER THE CONFERENCE WAS CANCELED THE COMPANIES DEMANDED 16 MILLION IN DAMAGES FROM HARVARD WE INFORMED THEM THAT THEY HAD SIGNED A CONTRACT THAT WE WERE GOING TO HOLD THEM TO SAYS HANK SHAFRAN A SPOKESMAN FOR MARRIOTT WE CERTAINLY WOULD HAVE PREFERRED TO SETTLE THIS ISSUE AND NOT GET INTO LITIGATION BUT HARVARD REFUSED TO SETTLE AND IN JANUARY ASKED A COURT TO RESOLVE THE DISPUTE THE UNIVERSITY CONTENDS THE CANCELLATION WAS UNAVOIDABLE BECAUSE OF US LAWS RESTRICTING THE ABILITY OF HIVINFECTED PEOPLE TO ENTER THE COUNTRY HOSPITALITYINDUSTRY EXPERTS EXPECT HOTELS TO CONTINUE ENFORCING CONVENTION CONTRACTS VIGOROUSLY BUT THEY SAY THE NUMBER OF CASES LITIGATED MAY ACTUALLY DECLINE FOR ONE THING MANY HOTELS ARE REWRITING THEIR CONTRACTS TO STATE CLEARLY THE PENALTIES FOR CANCELING MANY GROUPS THAT PLAN CONVENTIONS ARE BUYING CANCELLATION INSURANCE TO PROTECT THEMSELVES FROM SUCH PENALTIES AND ENFORCING CURRENT CONTRACTS ULTIMATELY MAY CURB CANCELLATIONS BY SENDING THE MESSAGE THAT CONVENTIONS CAN'T BE FREELY ANNULLED YEARS WENT BY IN WHICH HOTELS ALLOWED CANCELLATIONS TO HAPPEN SAYS MR RUDNER WHEN YOU'VE ALLOWED YOURSELF TO BE A PATSY YEAR AFTER YEAR PEOPLE JUST PRESUME YOU WILL ALWAYS BE ONE ABORTION THE ENVIRONMENT HOSTILE TAKEOVERS AND RETIREES' RIGHTS ARE ALL ON THE DOCKET FOR THE INCOMING SOLICITOR GENERAL WHO IS EXPECTED TO BE NAMED SHORTLY BY PRESIDENT CLINTON THE LIKELY NOMINEE TO BE THE ADMINISTRATION'S CHIEF LAWYER BEFORE THE SUPREME COURT IS PROF DREW DAYS OF YALE LAW SCHOOL WHEN THE JUSTICES AREN'T SURE ABOUT WHETHER TO HEAR A CASE CONCERNING FEDERAL LAW THEY ASK THE SOLICITOR GENERAL FOR ADVICE AND USUALLY FOLLOW IT THE REQUESTS HAVE BEEN PILING UP IN RECENT MONTHS AS THE CLINTON ADMINISTRATION SLOWLY GOT ITSELF RUNNING THE MOST CONTROVERSIAL APPEAL THE NEW SOLICITOR GENERAL MUST ASSESS COMES FROM THE NATIONAL ORGANIZATION OF WOMEN WHICH IS SEEKING TO REVERSE A LOWERCOURT RULING THAT MADE IT VERY DIFFICULT TO USE THE FEDERAL RACKETEERING LAW AS A COURTROOM WEAPON AGAINST ABORTIONCLINIC BLOCKADERS CONGRESS IS SEPARATELY CONSIDERING LEGISLATION TO GIVE CLINICS GREATER PROTECTION AGAINST MILITANT PROTESTERS THE SOLICITOR ALSO HAS BEEN ASKED WHETHER THE HIGH COURT SHOULD CONSIDER RESTRICTING STATES' AUTHORITY TO CONDITION HYDROELECTRIC POWER PROJECTS ON AESTHETIC REQUIREMENTS UNRELATED TO WATER QUALITY AT ISSUE IS VERMONT'S REQUIREMENT THAT A PAPER COMPANY SATISFY AESTHETIC AND RECREATIONAL STANDARDS A THIRD DISPUTE CONCERNS WHETHER TARGETS OF HOSTILE TAKEOVERS MAY FILE FEDERAL ANTITRUST LAWSUITS TO BLOCK THEIR UNWANTED SUITORS LOWER FEDERAL COURTS HAVE SPLIT OVER THE PROPRIETY OF THIS DEFENSE TACTIC IN ANOTHER CASE THE QUESTION IS WHETHER RETIREES WHO FEEL THEY WERE CHEATED ON THEIR PENSIONS MAY SUE UNDER THE FEDERAL PENSIONPROTECTION LAW FOR MONEY DAMAGES BEYOND THE BENEFITS THEY WERE OWED BY THEIR EMPLOYER MOST FEDERAL COURTS OF APPEAL HAVE SAID NO OLDER FOLKS AND UNIONS THINK THE ANSWER SHOULD BE YES COMPANIES CAN'T AVOID PAYING EMPLOYEE BENEFITS BY TURNING WORKERS INTO INDEPENDENT CONTRACTORS A FEDERAL APPEALS COURT RULED THE APPEALS COURT IN ATLANTA SAID THE FEDERAL EMPLOYEEBENEFITS LAW DOES PERMIT COMPANIES TO SUDDENLY REDUCE OR CUT OFF BENEFITS BUT NOT BY FIRING EMPLOYEES OR REQUIRING THEM TO CHANGE THEIR EMPLOYMENT STATUS SUCH MANEUVERS VIOLATE THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 A THREEJUDGE PANEL FOUND IN APPARENTLY THE FIRST APPELLATE RULING ON THE ISSUE THE DECISION CAME IN A CASE BROUGHT BY A FORMER SALESWOMAN AT ARVIDA REALTY SALES INC IN FLORIDA WHO ALLEGED SHE WAS FIRED FOR REFUSING TO BECOME AN INDEPENDENT CONTRACTOR AS AN INDEPENDENT CONTRACTOR SHE WOULD HAVE LOST THE HEALTH INSURANCE AND PENSION BENEFITS SHE HAD AS AN EMPLOYEE THE SALESWOMAN ALLEGED THAT ARVIDA REPRESENTATIVES SAID THE COMPANY WAS TRYING TO PARE ITS BENEFITS COSTS IF THE EMPLOYER DECIDES TO OFFER BENEFITS THE ELEVENTH US CIRCUIT COURT OF APPEALS SAID IT MUST ALLOW ITS EMPLOYEES TO TAKE ADVANTAGE OF THE PLAN AND MUST ADMINISTER THE PLAN IN A NONDISCRIMINATORY FASHION BUT EMPLOYERS ARE FREE TO DECLINE TO OFFER BENEFITS IN THE FIRST PLACE OR TO YANK MANY BENEFITS THE COURT SAID NOTING THAT THE SUPREME COURT HAS ALLOWED SUCH MOVES KEITH B ROMICH AN ATTORNEY IN ATLANTA FOR ARVIDA SAID HIS CLIENT WILL ASK THE APPEALS COURT TO REHEAR THE CASE IT DOESN'T MAKE SENSE THAT COMPANIES CAN STOP PAYING BENEFITS THROUGH ONE PROCEDURE BUT NOT ANOTHER HE SAID ADDING IN BOTH SCENARIOS THE EFFECT IS THE SAME MR ROMICH SAID ARVIDA WAS MAINLY TRYING TO SAVE ON PAYROLL TAXES NOT BENEFITS AFTER ALL HE SAID ACCORDING TO THE COURT'S OPINION ARVIDA COULD HAVE SLASHED BENEFITS WITHOUT MAKING SALESPEOPLE INTO INDEPENDENT CONTRACTORS FEW COMPANIES HAVE CONVERTED EMPLOYEES INTO INDEPENDENT CONTRACTORS TO SAVE ON BENEFITS SAID PHILIP M BERKOWITZ A NEW YORK LABOR LAWYER FOR EMPLOYERS BUT THE RULING BY THE APPEALS COURT WHICH COVERS ALABAMA FLORIDA AND GEORGIA SEEMS TO CUT OFF ONE AVENUE FOR COMPANIES TRYING TO HOLD THE LINE ON RISING BENEFITS EXPENSES COMPANIES ARE NOW TRYING EVERY WHICH WAY TO REDUCE THEIR BENEFITS MR BERKOWITZ SAID I'M SENDING A MEMO ABOUT THE DECISION TO MY CLIENTS BECAUSE SOME OF THEM MAY HAVE THOUGHT ABOUT SOMETHING AS CRAZY AS THIS PATRICIA SEAMAN VS ARVIDA REALTY SALES ELEVENTH US CIRCUIT COURT OF APPEALS ATLANTA 922171 WHO'S NEWS EDWIN D WILLIAMSON FORMER STATE DEPARTMENT LEGAL ADVISER RETURNED TO NEW YORK LAW FIRM SULLIVAN & CROMWELL AS A PARTNER IN WASHINGTON ALSO JOINING THE FIRM IS PATRICIA DIAZ DENNIS A FORMER COMMISSIONER OF THE FEDERAL COMMUNICATIONS COMMISSION AND ASSISTANT US SECRETARY OF STATE FOR HUMAN RIGHTS AT THE LAW FIRM MS DENNIS IS A SPECIAL COUNSEL FOR COMMUNICATIONS MATTERS JEFFREY N SHANE FORMERLY ASSISTANT SECRETARY OF TRANSPORTATION JOINED WASHINGTON LAW FIRM WILMER CUTLER & PICKERING AS COUNSEL PARIS UNION ROGERS & WELLS IS COMBINING ITS 11ATTORNEY PARIS OFFICE WITH FRENCH LAW FIRM BOCCARAORENGOVAN CAUWELAERT THE COMBINATION WILL ADD TWO NEW PARTNERS AND FIVE ASSOCIATES TO THE NEW YORK LAW FIRM PAUL M BARRETT CONTRIBUTED TO THIS ARTICLE 9303290087 930329 DSC REDEEMS DEBENTURES THE TELECOMMUNICATIONS COMPANY SAID THE 713 MILLION OF DEBENTURES WERE CONVERTED INTO 38 MILLION COMMON SHARES 9303290086 930329 BUSINESS BRIEF ZENITH ELECTRONICS CORP FLETCHER CAPITAL TO BUY 38 TO 47 OF COMMON STOCK ZENITH ELECTRONICS CORP SAID IT AGREED TO SELL 12 MILLION TO 15 MILLION SHARES OF NEWLY ISSUED COMMON STOCK EQUAL TO 38 TO 47 OF ITS SHARES OUTSTANDING TO FLETCHER CAPITAL MARKETS INC A NEW YORK INVESTMENT GROUP FORMED IN 1991 FLETCHER CAPITAL SAID THAT IT VALUED THE INVESTMENT IN THE TROUBLED ELECTRONICS COMPANY AT ABOUT 10 MILLION ZENITH SHARES CLOSED UNCHANGED AT 6875 FRIDAY IN NEW YORK STOCK EXCHANGE TRADING ZENITH BASED IN GLENVIEW ILL SAID THE PERSHARE PRICE OF THE SALE WILL BE RELATED TO TRANSACTIONS ON THE NEW YORK STOCK EXCHANGE DURING A SPECIFIED PERIOD ZENITH SAID THE TRANSACTION WHICH IS SUBJECT TO CERTAIN CONDITIONS IS EXPECTED TO CLOSE IN ABOUT TWO MONTHS ZENITH WHICH HASN'T MADE MONEY FROM CONTINUING OPERATIONS SINCE THE EARLY 1980S REPORTED A LOSS FOR 1992 OF 1059 MILLION OR 359 A SHARE AFTER TAKING 481 MILLION IN CHARGES LAST YEAR MOSTLY FOR RESTRUCTURINGS 9303290085 930329 BUSINESS BRIEF MIDLANTIC CORP FORMER LOAN OFFICER PLEADS GUILTY TO DEFRAUDING BANK A FORMER LOAN OFFICER OF MIDLANTIC CORP PLEADED GUILTY TO DEFRAUDING THE COMPANY OF 346000 BY GRANTING LOANS TO A FICTITIOUS PERSON AND COMPANY HE CREATED FOR HIS OWN USE FEDERAL PROSECUTORS SAID US ATTORNEY MICHAEL CHERTOFF SAID JAMES J HARRINGTON WHO WORKED AT THE MORRISTOWN NJ BRANCH OF MIDLANTIC NATIONAL BANK ADMITTED THAT IN 1987 HE GRANTED A FICTITIOUS COMPANY P&E REAL ESTATE INC A 188000 LOAN AND INCREASED THAT LOAN BY 12000 IN 1989 IN 1990 HE AUTHORIZED A 96000 LOAN FOR JOHN W SCHMIDT JR AND ANOTHER LOAN FOR 50000 WHICH HE USED TO MAKE ADDITIONAL PAYMENTS ON THE LOAN TO P&E REAL ESTATE HE ADMITTED THAT HE CONCEALED HIS CONNECTION TO THOSE ACCOUNTS FROM MIDLANTIC AN EDISON NJBASED BANKING CONCERN PROSECUTORS SAID MR HARRINGTON FACES A MAXIMUM 30 YEARS IN FEDERAL PRISON AND 1 MILLION IN FINES AT HIS SCHEDULED SENTENCING MAY 23 PROSECUTORS SAID 9303290084 930329 MARKETING BRIEF CREDIT LYONNAIS SA MGM SAYS NET LOSS FOR 1992 NARROWED TO 2711 MILLION METROGOLDWYNMAYER INC SAID ITS NET LOSS FOR 1992 NARROWED TO 2711 MILLION FROM 3474 MILLION IN 1991 THE NET LOSS IN 1992 WAS AFTER A 33 MILLION CHARGE FOR AN INCOME TAX ACCOUNTING CHANGE THE OPERATING LOSS FOR THE YEAR NARROWED TO 865 MILLION FROM 1762 MILLION IN 1991 THE ENTERTAINMENT CONCERN WHICH IS OWNED BY THE FRENCH BANK CREDIT LYONNAIS SA AND BASED IN CULVER CITY CALIF SAID IT WILL REPORT FULL RESULTS SOON WE ARE PLEASED WITH THIS IMPROVEMENT IN MGM'S RESULTS AS COMPARED WITH THE PRIOR YEAR'S WE ARE CONFIDENT THAT THE RESULTS FOR 1993 WILL SHOW EVEN GREATER IMPROVEMENT COCHAIRMEN AND CHIEF EXECUTIVES ALAN LADD JR AND DENNIS STANFILL SAID IN A JOINT STATEMENT MGM SAID THAT KPMG PEAT MARWICK ITS INDEPENDENT AUDITORS WILL ISSUE AN UNQUALIFIED OPINION ON MGM'S FINANCIAL STATEMENTS SEPARATELY MGM SAID CREDIT LYONNAIS HAS AGREED TO SUPPORT ITS PLANS FOR SUBSTANTIAL NEW FILM PRODUCTION 9303290083 930329 THE OUTRAGED PUBLIC SAYS IT FINDS THE SUBJECT VERY HARD TO SWALLOW BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN THE YOUNG LAWYERS DIVISION OF ARIZONA'S MARICOPA COUNTY BAR ASSOCIATION KICKED OFF ITS ANNUAL JUNIORHIGH ESSAY CONTEST LAST MONTH IT CERTAINLY DIDN'T EXPECT TO BE EATEN ALIVE BY PROTESTERS BUT THE HYPOTHETICAL QUESTION OR HYPO THAT IT ASKED SIXTHGRADERS TO NINTHGRADERS TO PONDER HAS HAD PARENTS AND LOCAL SCHOOLS IN THE STATE CRYING BLOODY MURDER THE HYPO INVOLVES THE LEGAL RAMIFICATIONS OF TWO PHOENIX STUDENTS TRAPPED IN A CAVE SURVIVING BY KILLING A THIRD AND PLANNING TO EAT HIM IN THE WEEKS LEADING UP TO FRIDAY'S DEADLINE THE CONTEST HAD BEEN BANNED IN MORE THAN 50 COUNTY SCHOOLS PERHAPS THE MOST RESTRAINED OBJECTION COMES FROM PAM SANTESTEBAN ASSISTANT SUPERINTENDENT OF THE WASHINGTON ELEMENTARY SCHOOL DISTRICT WHO SAYS CANNIBALISM IS NEITHER SUBJECT MATTER NOR AGEAPPROPRIATE FOR CHILDREN 11 TO 14 YEARS OLD BUT A TEMPE LETTER WRITER REACTING TO LOCAL PRESS COVERAGE OF THE BROUHAHA OBJECTED TO THE BAR ASSOCIATION THAT THE IDEA IS SO DISGUSTING IT MAKES ME SICK SAID ANOTHER I MAKE A MOTION THAT ALL LAW SCHOOLS BE CLOSED IMMEDIATELY ONE OF 50 PHONE CALLERS THIS ONE ANONYMOUS TOLD AN ASSOCIATION RECEPTIONIST IF IT WEREN'T AGAINST THE LAW I'D COME DOWN THERE AND KILL YOU AND KILL YOUR CHILDREN AND EAT THEM AN ASSOCIATION SPOKESMAN SAYS THE GROUP BELIEVED IT ONLY FAIR TO GO ON DESPITE THE CONTROVERSY FOR THE 200 STUDENTS WHO DID ENTER IN PURSUIT OF FOUR 50 SAVINGSBOND PRIZES TIMOTHY HYLAND YOUNG LAWYERS DIVISION PRESIDENT SAYS THE LEGAL GROUP WANTED SOMETHING THAT WAS WAY OUT IN ITS ESSAY QUESTION BUT IT DIDN'T WANT TO SUBJECT STUDENTS TO SUCH REALLIFE CONTROVERSIES AS WHETHER IT'S EVER OK TO BECOME A GANG MEMBER AND KILL SOMEBODY EVAN LEE AN ASSISTANT PROFESSOR AT SAN FRANCISO'S HASTINGS COLLEGE OF THE LAW NOTES THAT SUCH HYPOS ARE OFTEN ASKED IN LAW SCHOOLS AS PART OF A SOCRATIC TECHNIQUE TO HELP STUDENTS SEE LOGICAL FLAWS IN THEIR REASONING PROFESSORS CREATE SUCH CASES HE SAYS BECAUSE THE WHOLE IDEA OF THE LAW IS THAT IT'S GOT TO APPLY TO MORE THAN JUST THE SITUATION IN FRONT OF YOU IN FACT A FAMOUS LAWSCHOOL CANNIBAL HYPO ON WHICH THE ESSAY QUESTION IS BASED DOES VAGUELY REFLECT AN OFTCITED 1884 ENGLISH CASE IN WHICH AN ADRIFT SEA CAPTAIN AND HIS MATE POLISH OFF THEIR CABIN BOY THE TWO WERE CONDEMNED TO DIE BEFORE THE SENTENCE WAS COMMUTED 9303290082 930329 LEISURE & ARTS BOOKSHELF LOVERS IN A MAGICAL MYTHICAL AFRICA BY EDWARD HOWER DO WE CONTROL OUR DESTINIES OR ARE WE FIGURES IN SOME CELESTIAL BOARD GAME MOVED HERE AND THERE ACCORDING TO THE ROLLS OF COSMIC DICE IN HER ENGAGING NEW NOVEL CLEOPATRA'S SISTER HARPERCOLLINS 282 PAGES 20 PENELOPE LIVELY HAS GREAT FUN WITH THIS ANCIENT CONUNDRUM ON ONE SIDE OF THE QUESTION ARE AN EARNEST SCIENTIST AND A BEAUTIFUL GLOBETROTTING JOURNALIST BOTH ARDENT BELIEVERS IN SELFDETERMINATION MOVING INEXORABLY TOWARD THEM IS THEIR FATE A SERIES OF RANDOM EVENTS THAT WILL THROW THEM TOGETHER IN A STRANGE AFRICA THEY NEVER DREAMED THEY'D VISIT MS LIVELY WHOSE NOVEL MOON TIGER WON BRITAIN'S BOOKER PRIZE IN 1987 IS THE AUTHOR OF MANY CHILDREN'S BOOKS AS WELL AS 10 ADULT NOVELS LIKE A STORYTELLER ENTHRALLING CHILDREN SHE RELATES THE FABLE OF HER MYTHOLOGICAL NORTH AFRICAN NATION CALLIMBIA WITH SUCH MAGICAL DETAIL THAT I HAD TO CONSULT THE ENCYCLOPEDIA TO MAKE SURE IT REALLY WAS MYTHOLOGICAL IT IS THE PLACE THE AUTHOR TELLS US IN ALTERNATE CHAPTERS WAS MADE FAMOUS BY CLEOPATRA'S SISTER BERENICE WHO ONCE THREW A PARTY IN HONOR OF CLEOPATRA'S LOVER ANTONY THERE WERE TORCHLIT PROCESSIONS PHALANXES OF DANCING GIRLS CAULDRONS OF ROASTED DOVES VATS OF CALLIMBIA'S CHOICEST WINES HONEYBAKED GAZELLE PHOENIX STEEPED IN HERBS MASQUES AND ACROBATIC DISPLAYS AND A CONTINUOUS SERENADE BY HANDPICKED EUNUCHS THE PHOENIX SHOULD HAVE TIPPED ME OFF GROWING UP NEITHER HOWARD THE SCIENTIST NOR LUCY THE JOURNALIST IS AWARE OF ALL THIS HISTORY HOWARD IS A BELOVED ONLY CHILD WHOSE HAPPIEST TIMES ARE SPENT EXAMINING FOSSILS BY THE SEASIDE LUCY IS A DETERMINED FATHERLESS LITTLE GIRL WHO ACTS AS A PARENT TO HER DREAMY MOTHER AS WELL AS TO HER SIBLINGS AS ADULTS THEY FIND CAREERS THEY LOVE HOWARD A PALEONTOLOGIST TAKES DELIGHT IN SEARCHING THE WILDS FOR PROMISING ROCKS THE ELEGANCE OF NATURE'S DESIGNS CONTINUES TO INSPIRE HIM AS HE WATCHES THE DETAIL AND COMPLEXITY OF AN ORGANISM SHINE UP AT HIM FROM THE FLOODLIT LANDSCAPE OF THE MICROSCOPE LUCY TOO RETAINS HER SENSE OF AMAZEMENT AS SHE BECOMES ENGROSSED IN JOURNALISM PROBING INTO POLITICAL ISSUES RELISHING THE UNFOLDING OF EVENTS THE NARRATIVE OF NEWS WHICH SWEPT AHEAD REGARDLESS AS THOUGH HISTORY HAD A MOMENTUM OF ITS OWN QUITE INDEPENDENT OF HUMAN ENERGY THE TWO DON'T DO SO WELL IN THEIR PERSONAL LIVES SHY HOWARD SOMEWHAT BEWILDERED BY THE PAIRBONDING SYSTEM FALLS IN LOVE WITH A FLUTIST WHO TURNS OUT TO BE A BORNAGAIN CHRISTIAN ON THE REBOUND HE FINDS A PATHOLOGICALLY DISAGREEABLE WOMAN WHO DOES HER BEST TO STRIP AWAY EVERY SHRED OF HIS SELFCONFIDENCE MS LIVELY'S PORTRAIT OF HER IS ONE OF THE WITTIEST IN A BOOK FULL OF DEFTLY DRAWN CHARACTERS LUCY BECOMES INVOLVED WITH AN IRASCIBLE POLE WHO DISLIKES FIDELITY AND THEN WITH A DASHING FILMMAKER WHO DASHES OFF TO SO MANY PLACES THAT HE RARELY HAS TIME FOR HER BY THE TIME HOWARD AND LUCY BOARD A PLANE FOR AFRICA IT'S OBVIOUS THAT THEY'RE BOTH READY FOR MORE SYMPATHETIC LOVERS UNTIL NOW WE'VE BEEN READING A LEISURELY LITERARY NOVEL ENJOYING THE STYLISH WAY THE AUTHOR DEVELOPS HER CHARACTERS AND CREATES A WORLD FOR THEM WITH ABSOLUTE AUTHORITY AS SOON AS THEIR PLANE IS FORCED DOWN IN MODERNDAY CALLIMBIA THOUGH THE BOOK'S PACE CHANGES DRAMATICALLY THE PASSENGERS ARE HELD HOSTAGE AND SUDDENLY WE'RE READING A TENSE PAGETURNER IT'S FUN TO WATCH HOW EACH NEW EVENT DEEPENS HOWARD AND LUCY'S RELATIONSHIP SOME INTERESTING NEW CHARACTERS APPEAR INCLUDING CALLIMBIA'S EGOMANIACAL DICTATOR WHO ORDERS HOWARD AND LUCY TO THE PALACE TO PLAY A MILITARY BOARD GAME WITH HIM BECAUSE IT REMINDS HIM OF ONE HE PLAYED AS A CHILD I THOUGHT YOU WERE A PACIFIST HOWARD WHISPERS TO LUCY AS SHE SETS UP THE CARDBOARD FIGURES ON THE DICTATOR'S MASSIVE DESK IF WE'RE BEING MADE TO PLAY THIS STUPID GAME LUCY REPLIES WE'RE DAMN WELL GOING TO WIN FOR A FEW MOMENTS THE TWO BRAVELY ASSERT THEIR RIGHT TO CHALLENGE FATE THOUGH THE GAME ULTIMATELY DECIDES NOTHING THE LOVERS' FAITH IN THEMSELVES IS AMONG THEIR MOST APPEALING QUALITIES AND IT SERVES THEM WELL AT THE CLIMAX OF THEIR ORDEAL FOR THE AUTHOR TO CHANGE THE PACE MIDWAY THROUGH THE BOOK IS A BOLD MOVE ONE PROBLEM WITH THIS IS THAT THE SUPERB LANGUAGE WITH WHICH MS LIVELY UNFOLDS HOWARD'S AND LUCY'S LIVES INEVITABLY HAS TO BE PARED DOWN IN THEIR TENSE NEW SETTING EVEN AS I ENJOYED TURNING PAGES I FOUND MYSELF REGRETTING THAT SHE HAD ABANDONED HER EARLIER MORE THOUGHTFUL STYLE EVERYTHING THAT THE LOVERS DO IS PSYCHOLOGICALLY RIGHT YET I EXPECTED MORE UNDER EXTREME STRESS PEOPLE ARE KNOWN TO DEVELOP SURPRISING POWERS OF INTROSPECTION YET HOWARD'S AND LUCY'S INNER LIVES REMAIN HIDDEN AS EVENTS OVERTAKE THEM YET BOTH HALVES ARE CERTAINLY MEMORABLE EACH IN ITS OWN WAY MS LIVELY HAS WRITTEN AN ENORMOUSLY ENTERTAINING NOVEL FULL OF WIT INTELLIGENCE AND SOME OF THE MOST ELEGANT WRITING TO BE FOUND ANYWHERE MR HOWER IS A NOVELIST AND CRITIC 9303290081 930329 US SETS 52WEEK BILL SALE WASHINGTON THE TREASURY PLANS TO SELL 1425 BILLION IN 52WEEK BILLS THURSDAY TO REDEEM THE SAME AMOUNT OF MATURING BILLS THE AUCTION IS CONTINGENT UPON CONGRESS LIFTING THE FEDERAL DEBT CEILING BY THE AUCTION DATE THE TREASURY SAID THE SALE AMOUNT WHICH WON'T RAISE ANY NEW CASH IS UNCHANGED FROM THE PREVIOUS 52WEEK BILL SALE MARCH 4 THE BILLS WILL BE AVAILABLE IN MINIMUM DENOMINATIONS OF 10000 THEY WILL BE DATED APRIL 8 AND WILL MATURE APRIL 7 1994 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EST THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS ARE DUE BY 1 PM THE BILLS CARRY CUSIP NUMBER 912794J88 9303290080 930329 BUSINESS BRIEF GENERAL SIGNAL CORP GCA UNIT'S THREE SEGMENTS ARE TO BE SOLD SEPARATELY GENERAL SIGNAL CORP STAMFORD CONN SAID IT INTENDS TO SELL ITS GCA UNIT AS THREE SEPARATE BUSINESSES AS PART OF ITS PREVIOUSLY ANNOUNCED PLAN TO GET OUT OF THE SEMICONDUCTOR EQUIPMENT BUSINESS THE GCA SEGMENTS TO BE SOLD SEPARATELY ARE A WORLDWIDE SERVICES AND MAINTENANCE OPERATION THE TROPEL DIVISION WHICH MAKES LENSES FOR WAFER STEPPING EQUIPMENT AND LENSES AND INSTRUMENTATION FOR OTHER PRECISION INDUSTRIAL APPLICATIONS AND THE WAFER STEPPER PRODUCT LINE GENERAL SIGNAL SAID IT DECIDED TO OFFER GCA'S BUSINESSES SEPARATELY AFTER PURCHASERS INQUIRED ABOUT BUYING INDIVIDUAL OPERATIONS DURING THE FIRST THREE QUARTERS OF 1992 ITS SEMICONDUCTOR EQUIPMENT OPERATIONS WITH REVENUE OF 135 MILLION HAD LOSSES OF ABOUT 7 MILLION 6 CENTS A SHARE GCA ANDOVER MASS INTRODUCED THE FIRST WAFER STEPPER A COMPLEX OPTOMECHANICAL ELECTRONIC SYSTEM USED BY SEMICONDUCTOR MANUFACTURERS TO OPTICALLY PATTERN INTEGRATED CIRCUITS GENERAL SIGNAL ALSO MAKES EQUIPMENT AND INSTRUMENTS FOR PROCESS CONTROL ELECTRICAL AND INDUSTRIAL TECHNOLOGY APPLICATIONS 9303290079 930329 BUSINESS BRIEF CONSECO INC IPO OF BANKERS LIFE HOLDING RESULTED IN 1STQUARTER GAIN CONSECO INC WILL REPORT A 75 MILLION FIRSTQUARTER GAIN ON FRIDAY'S INITIAL PUBLIC OFFERING FOR BANKERS LIFE HOLDING CORP CONSECO A CARMEL IND LIFE INSURANCE COMPANY OWNS 327 OF BANKERS LIFE WHICH WENT PUBLIC FRIDAY FOR 22 A SHARE BY TAKING BANKERS LIFE PUBLIC WITHOUT SELLING ANY OF THEIR OWN SHARES CONSECO AND THE OTHER INVESTORS RECORDED AN UNREALIZED GAIN OF NINE TIMES THE AMOUNT THEY PAID FOR THE COMPANY ONLY FIVE MONTHS AGO A PAPER PROFIT OF 789 CONSECO LED THE INVESTOR GROUP THAT BOUGHT BANKERS LIFE FROM ICH CORP LAST NOVEMBER CONSECO'S GAIN ON THE SALE WORKS OUT TO 210 A SHARE IN THE YEARAGO FIRST QUARTER CONSECO EARNED 353 MILLION OR 106 A SHARE BY SELLING 17 MILLION SHARES AT 22 A SHARE BANKERS LIFE RAISED GROSS PROCEEDS OF 374 MILLION AND NET PROCEEDS OF 352 MILLION THE INITIAL STOCK PRICE WAS SLIGHTLY MORE THAN THE UNDERWRITERS EXPECTED ON THE NEW YORK STOCK EXCHANGE FRIDAY CONSECO SHARES ROSE 125 CENTS TO 70 BANKERS LIFE CLOSED AT 2450 UP 250 9303290078 930329 WHO'S NEWS LEEUWENBURG TO QUIT TWO POSTS AT VANS INC ORANGE CALIF VANS INC SAID RICHARD P LEEUWENBURG 51 YEARS OLD WILL RESIGN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE APRIL 8 WALTER E SCHOENFELD THE SHOE COMPANY'S 62YEAROLD VICE CHAIRMAN WILL SERVE AS PRESIDENT AND CEO UNTIL A SUCCESSOR IS NAMED IN A STATEMENT THE MAKER OF CASUAL FOOTWEAR SAID IT HAS HIRED TWO EXECUTIVE SEARCH FIRMS AND HOPES TO FILL THE POSITION WITHIN THREE MONTHS THE STATEMENT SAID MR LEEUWENBURG RESIGNED TO PURSUE PERSONAL INTERESTS AND COMPANY OFFICIALS DECLINED TO ELABORATE MR LEEUWENBURG REACHED AT HOME ALSO DECLINED TO DISCUSS HIS DEPARTURE SEPARATELY VANS REPORTED A NET LOSS OF 24 MILLION OR 25 CENTS A SHARE FOR THE FISCAL THIRD QUARTER ENDED FEB 28 COMPARED WITH NET INCOME OF 15 MILLION OR 15 CENTS A SHARE A YEAR EARLIER QUARTERLY RESULTS INCLUDED ABOUT 13 MILLION IN RESERVES FOR RECEIVABLES AND INVENTORY AND ABOUT 400000 IN EXPENSES RELATED TO A RECENT INVESTIGATION OF THE COMPANY BY THE FEDERAL IMMIGRATION AND NATURALIZATION SERVICE QUARTERLY SALES DECLINED 76 TO 182 MILLION FROM 197 MILLION A YEAR EARLIER AND SAMESTORE SALES DECLINED 16 WHICH THE COMPANY ATTRIBUTED TO A WEAK ECONOMY AND OTHER FACTORS 9303290077 930329 BUSINESS BRIEF RENOWN INC UNCONSOLIDATED PRETAX LOSS OF 55 MILLION IS REPORTED RENOWN INC JAPAN'S LARGEST MAKER OF APPAREL REPORTED AN UNCONSOLIDATED PRETAX LOSS OF 641 BILLION YEN 55 MILLION FOR THE SIXMONTH IRREGULAR ACCOUNT SETTLEMENT PERIOD ENDED JAN 31 THE PRIOR PERIOD IS SEVEN MONTHS MAKING DIRECT COMPARISONS INVALID THE COMPANY HAD A LOSS OF 1488 BILLION YEN FOR THAT PERIOD THE IRREGULAR PERIODS RESULT FROM RENOWN'S SWITCH TO A FISCAL YEAR STARTING FEB 1 FROM ONE STARTING JAN 1 THE COMPANY CITED WEAK CONSUMER SPENDING AMID JAPAN'S ECONOMIC SLOWDOWN THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID SALES AT DEPARTMENT STORES AND OTHER MAJOR STORES SLIPPED 50 YEARONYEAR IN FEBRUARY TO MARK A NINTH CONSECUTIVE MONTH OF DECLINE THE COMPANY SAID THAT IT FORECASTS ROUGH BUSINESS CONDITIONS IN THE COMING FISCAL YEAR WITH LAG TIME BEFORE FISCALSTIMULUS MEASURES BY THE BANK OF JAPAN AND THE GOVERNMENT RUN THEIR COURSE IN THE FULL FISCAL YEAR THROUGH JAN 1 1994 RENOWN FORECASTS A PRETAX PROFIT OF 1 BILLION YEN AND A NET PROFIT OF 1 BILLION YEN ON SALES OF 234 BILLION YEN IT SAID IT PLANS TO ISSUE A FULLYEAR DIVIDEND OF 750 YEN PER PARENT SHARE 9303290076 930329 INTERNATIONAL BRIEF ENTE NAZIONALE IDROCARBURI CHAIRMAN DIRECTORS NAMED TO ITALIAN ENERGY CONCERN ITALIAN PRIME MINISTER GIULIANO AMATO APPOINTED A NEW CHAIRMAN AND DIRECTORS FOR ITALY'S GIANT STATE ENERGY HOLDING COMPANY ENTE NAZIONALE IDROCARBURI LUIGI MEANTI HONORARY CHAIRMAN OF ENI'S GAS SUBSIDIARY SNAM SPA WAS MADE CHAIRMAN SUCCEEDING GABRIELE CAGLIARI WHO IS IN PRISON UNDER INVESTIGATION FOR ALLEGED INVOLVEMENT IN THE NATION'S SWEEPING POLITICALCORRUPTION SCANDAL FRANCO BERNABE WAS CONFIRMED IN HIS POSITION AS MANAGING DIRECTOR FOUR NEW DIRECTORS WERE APPOINTED TO REPLACE THE HEADS OF FOUR OF ENI'S SUBSIDIARIES WHO WERE ARRESTED EARLIER THIS MONTH ALSO IN ALLEGED CONNECTION WITH ITALY'S SWEEPING POLITICAL CORRUPTION SCANDAL THE NEW DIRECTORS ARE VITTORIO CODA A UNIVERSITY PROFESSOR AT MILAN'S PRESTIGIOUS BOCCONI UNIVERSITY GIANCARLO DEL BUFALO DIRECTOR GENERAL OF THE TREASURY MINISTRY ANGELO FERRARI VICE CHAIRMAN AND MANAGING DIRECTOR OF SNAM AND RENATO RIVERSO CURRENTLY CHAIRMAN OF COMPUTER GIANT INTERNATIONAL BUSINESS MACHINES CORP'S SUBSIDIARY IBM EUROPA 9303290075 930329 KEYCORP COMPLETES PURCHASE OF ASSETS IN UPSTATE NEW YORK ALBANY NY KEYCORP SAID IT COMPLETED THE ACQUISITION OF SUBSTANTIALLY ALL OF THE ASSETS OF FIRST AMERICAN BANK OF NEW YORK THE UPSTATE NEW YORK BANKING SYSTEM OF FIRST AMERICAN BANKSHARES OF WASHINGTON TERMS WEREN'T DISCLOSED KEYCORP SAID ITS KEY BANK OF NEW YORK UNIT ACQUIRED ABOUT 1 BILLION IN DEPOSITS 700 MILLION IN LOANS AND 40 OF FIRST AMERICAN'S BRANCHES IN NEW YORK STATE KEYCORP HAS MORE THAN 30 BILLION IN ASSETS WITH BANKING INTERESTS IN NORTHEAST AND NORTHWEST STATES A COURTAPPOINTED TRUSTEE IS SUPERVISING THE SALE OF FIRST AMERICAN BANKSHARES FOLLOWING 1991 DISCLOSURES THAT A MAJORITY OF ITS STOCK WAS OWNED BY BCCI HOLDINGS LUXEMBOURG SA THE CLOSED ROGUE BANK WITH WORLDWIDE OPERATIONS FIRST UNION CORP CHARLOTTE NC RECENTLY AGREED TO BUY FIRST AMERICAN OPERATIONS AND MORE THAN 4 BILLION IN DEPOSITS IN VIRGINIA MARYLAND AND THE DISTRICT OF COLUMBIA FOR 453 MILLION IN A RELATED TRANSACTION KEY BANK OF NEW YORK AGREED TO SELL ONE FIRST AMERICAN BRANCH IN MANHATTAN TO BANCO DE BOGOTA TRUST CO NEW YORK THE BRANCH HAS ABOUT 150 MILLION IN DEPOSITS AND 90 MILLION IN LOANS A KEY BANK SPOKESMAN SAID KEYCORP HAS NO BRANCHES IN MANHATTAN BANCO DE BOGOTA SAID THE TRANSACTION INCREASES ITS ASSET BASE TO 350 MILLION 9303290074 930329 BUSINESS BRIEF CLUB MEDITERRANEE RESORT FIRM EXPECTS RESULTS FOR 2ND QUARTER TO IMPROVE CLUB MED INC BENEFITING FROM INCREASED TRAVEL BY ITS NORTH AMERICAN CUSTOMERS AND A STRONG PRESENCE IN ASIA EXPECTS RESULTS FOR THE FISCAL SECOND QUARTER ENDING APRIL 30 TO IMPROVE FROM A YEAR AGO ALONG THE LINES OF THE RESORT CONCERN'S FIRSTQUARTER IMPROVEMENT FISCAL FIRSTQUARTER EARNINGS ROSE 20 TO 111 MILLION OR 77 CENTS A SHARE ON A 9 REVENUE RISE TO 1582 MILLION IN THE YEARAGO SECOND QUARTER CLUB MED HAD NET INCOME OF 166 MILLION OR 116 A SHARE ON REVENUE OF 1519 MILLION WORLDWIDE OCCUPANCY RATES LAST YEAR WERE ABOUT 64 AND SERGE TRIGANO VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID CLUB MED'S FIRST THREE MONTHS THIS YEAR HAVE SHOWN AN IMPROVEMENT THE COMPANY INCORPORATED IN THE CAYMAN ISLANDS AND 72OWNED BY PARISBASED CLUB MEDITERRANEE SA OWNS OPERATES OR MANAGES 27 CLUB MED RESORT VILLAGES IN NORTH AMERICA AND ASIA THERE ARE 110 VILLAGES OVERALL 9303290073 930329 INTERNATIONAL CONSERVATIVES IN FRANCE FACE STRATEGY SPLIT BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FRANCE'S VICTORIOUS CONSERVATIVE PARTIES ARMED WITH A HUGE PARLIAMENTARY MAJORITY AFTER A FINAL ROUND OF ELECTIONS YESTERDAY ARE SPLIT OVER WHETHER TO SEEK AN ACCOMMODATION WITH SOCIALIST PRESIDENT FRANCOIS MITTERRAND OR RISK ALLOUT CONFRONTATION AFTER A WEEK OF SHADOWBOXING DURING WHICH SEVERAL CONSERVATIVE LEADERS CALLED FOR MR MITTERRAND TO RESIGN THE OPTION CHOSEN BY THE NEW CONSERVATIVE GOVERNMENT THAT WILL BE APPOINTED THIS WEEK WILL BE DECISIVE THE SIZE OF ITS MAJORITY IS INCREASING PRESSURE FOR THE ADOPTION OF A TOUGH LINE WHICH COULD DESTABILIZE THE FRENCH DOMESTIC SCENE AND POTENTIALLY CAUSE HAVOC WITH FOREIGN POLICY THE LIKELY CONTENDER FOR PRIME MINISTER EDOUARD BALLADUR A FORMER FINANCE MINISTER APPARENTLY FAVORS A MORE HARMONIOUS RELATIONSHIP WITH THE PRESIDENT ALLIED CONSERVATIVE GROUPS WERE SET TO SWEEP MORE THAN 460 SEATS IN THE 577SEAT NATIONAL ASSEMBLY ACCORDING TO PROVISIONAL RESULTS THE SOCIALIST PARTY WON ABOUT 85 SEATS WITH THE REMAINDER GOING TO COMMUNISTS THE EXTREMIST NATIONAL FRONT AND ENVIRONMENTAL GROUPS BOTH APPARENTLY FAILED TO WIN A SINGLE SEAT DEFYING PREDICTIONS MANY TOP SOCIALIST OFFICIALS LOST THEIR SEATS INCLUDING FOREIGN MINISTER ROLAND DUMAS AND MICHEL ROCARD A FORMER PRIME MINISTER WHO HAD SET HIMSELF THE TASK OF REVIVING THE LEFT AFTER THE ELECTIONS HIS FUTURE ROLE NOW IS IN DOUBT AND HIS DEFEAT MAY OPEN THE WAY FOR THE RETURN TO FRENCH POLITICS OF JACQUES DELORS CURRENTLY THE PRESIDENT OF THE EUROPEAN COMMUNITY COMMISSION IN BRUSSELS THE OUTCOME ONE OF THE MOST LOPSIDED FRENCH ELECTIONS THIS CENTURY IS A SWEET VICTORY FOR JACQUES CHIRAC THE MAYOR OF PARIS WHO HEADS THE GAULLIST RALLY FOR THE REPUBLIC OR RPR THE RPR CAME OUT TOP IN THE VOTING MAKING MR CHIRAC THE LEADING CANDIDATE TO SUCCEED MR MITTERRAND AS PRESIDENT AHEAD OF HIS OLD COLLEAGUE AND RIVAL VALERY GISCARD D'ESTAING WHO HEADS THE OTHER MAIN CONSERVATIVE GROUPING MR GISCARD D'ESTAING WHO HAS ALREADY SERVED ONE TERM AS PRESIDENT IS STILL HOPEFUL OF HOLDING THE POST AGAIN BUT ANY GLOATING BY CONSERVATIVES AT THEIR ELECTORAL TOUR DE FORCE IS BEING TEMPERED BY THE QUESTION OF HOW TO DEAL WITH MR MITTERRAND ONE SENIOR GAULLIST OFFICIAL SPEAKING PRIVATELY SUMS UP THE SITUATION THIS WAY CHIRAC WANTS TO GET MITTERRAND OUT AND HOLD PRESIDENTIAL ELECTIONS AS SOON AS POSSIBLE WHICH HE THINKS HE WILL WIN GISCARD REALIZES THIS AND IS PREVARICATING WHILE MITTERRAND WANTS TO STAY ON AS LONG AS POSSIBLE THESE DIFFERING AIMS ARE A RECIPE FOR POLITICAL TURBULENCE AND INFIGHTING THE TACTICS ADOPTED BY MR MITTERRAND HIMSELF WHO ISN'T DUE TO LEAVE OFFICE UNTIL 1995 WILL PLAY AN IMPORTANT ROLE STARTING WITH HIS NAMING OF A PRIME MINISTER THIS WEEK THE LEADING CANDIDATE MR BALLADUR 63 YEARS OLD IS A CLOSE ALLY OF MR CHIRAC WELL VERSED IN GOVERNMENT BUT NOT THOUGHT TO HAVE PRESIDENTIAL AMBITIONS OF HIS OWN HE DRAFTED HIS LIST OF LIKELY CABINET MEMBERS EVEN BEFORE THE FINAL ROUND OF VOTING AND A BALLADUR GOVERNMENT IS EXPECTED TO TAKE SWIFT ACTION TO SELL OFF STATE ASSETS AND REDUCE THE BURDEN OF SOCIAL CHARGES ON COMPANIES OFFICIALS WHO KNOW HIS THINKING SAY HE FAVORS A SOFTER LINE WITH MR MITTERRAND THAN MR CHIRAC AND SOME OTHER COLLEAGUES INCLUDING ALAIN JUPPE THE RPR'S GENERAL SECRETARY AND A TOP CANDIDATE FOR FOREIGN MINISTER 9303290072 930329 COUNTEROFFER BY 4 NORTHWEST AIR UNIONS SEEMS HEADED FOR REJECTION BY COMPANY BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES' PILOTS AND THREE SMALLER LABOR GROUPS THIS WEEKEND PRESENTED A COUNTEROFFER IN RESPONSE TO THE AIRLINE'S EMPLOYEE CONCESSION PLAN BUT THE PROPOSAL FROM THE UNIONS WHICH CALLS FOR A 50 EQUITY STAKE IN THE AIRLINE AND DEMANDS THAT BANK LENDERS RESTRUCTURE THE CARRIER'S DEBT APPEARS HEADED FOR REJECTION BY NORTHWEST'S MANAGEMENT UNDER THE UNION PROPOSAL CURRENT COMMON SHAREHOLDERS WOULD GET 10 OF THE AIRLINE AND PREFERRED SHAREHOLDERS WOULD GET THE REMAINING 40 ALSO EMPLOYEES WOULD GET FIVE OF 15 SEATS ON THE BOARD PLAGUED BY HUGE DEBT AND INDUSTRYWIDE LOSSES NORTHWEST A UNIT OF WINGS HOLDINGS INC RECENTLY OFFERED TO GIVE EMPLOYEES A 20 EQUITY STAKE AND THREE DIRECTOR SEATS IN EXCHANGE FOR 883 MILLION IN WAGE AND BENEFIT GIVEBACKS SINCE THE TWO SIDES BEGAN TRADING OFFERS EARLIER THIS YEAR THEY HAVE DRAWN CLOSER ON THE EQUITY AND GOVERNANCE ISSUES BUT A STALEMATE REMAINS ON THE MATTER OF FINANCIAL RESTRUCTURING THE NEW PROPOSAL STIPULATES THAT THE COMPANY'S BANK SYNDICATE COMPRISING 57 BANKS MUST AGREE TO DEFER DEBT MATURITIES IN CONJUNCTION WITH EMPLOYEE INVESTMENT NORTHWEST MANAGEMENT CONTINUES TO INSIST THAT EMPLOYEES MUST MAKE THEIR INVESTMENT BEFORE THE BANKS CONSIDER RESTRUCTURING THE DEBT LABOR'S SUGGESTION FOR SIMULTANEOUS RESTRUCTURING REMAINS AS IMPOSSIBLE AND UNWORKABLE AS IT WAS LAST WEEK AND THE WEEK BEFORE THAT AND THE WEEK BEFORE THAT SAID A NORTHWEST SPOKESMAN THERE'S LITTLE POINT IN COMMENTING ON THE BALANCE OF THE PROPOSAL THE LATEST PROPOSAL INCLUDES PARTICIPATION FROM ALL SIX OF NORTHWEST'S UNIONS BUT THE AIRLINE'S MACHINIST AND FLIGHT ATTENDANT GROUPS DID NOT SIGN ONTO THE PLAN AND INSTEAD ARE CONTINUING TO NEGOTIATE SEPARATELY A SPOKESMAN FOR THE ST PAUL MINNBASED AIRLINE REFUSED TO COMMENT ON THOSE TALKS OFFICIALS FROM THE TWO DISSIDENT UNIONS COULD NOT BE REACHED FOR COMMENT ALTHOUGH THE LABOR GROUPS LATE LAST YEAR AGREED TO THE TOTAL AMOUNT OF AID THEY'D GIVE THE AIRLINE THEY RECENTLY SPLIT OVER HOW MUCH OF THE BURDEN EACH LABOR GROUP SHOULD BEAR THE AIRLINE'S MARCH 1 PROPOSAL TO THE UNIONS CALLED FOR PROGRESSIVE WAGE REDUCTIONS WHICH WOULD HAVE REQUIRED EMPLOYEES WITH HIGHER WAGES TO CONTRIBUTE MORE THAN LOWERPAID EMPLOYEES THAT PLAN WAS RECEIVED FAVORABLY BY MACHINISTS AND FLIGHT ATTENDANTS BUT PILOTS BRISTLED AT THE IDEA BECAUSE IT MEANT THAT THEIR RANKS WOULD HAVE TO CONCEDE A LARGER AMOUNT THE PILOTS INSIST THAT BECAUSE THEY REPRESENT ONETHIRD OF THE COMPANY'S LABOR COSTS THEN THEY SHOULD PAY NO MORE THAN ONETHIRD OF THE CONCESSIONS THE COMPANY'S PLAN ALLOWS THE MACHINISTS AND FLIGHT ATTENDANTS TO PAY LESS THAN THEIR SHARE CONTENDS OC MILLER WHO HEADS NORTHWEST'S AIR LINE PILOTS ASSOCIATION WHICH REPRESENTS THE CARRIER'S 5400 PILOTS BECAUSE OF THE RIFT THE 26000 MACHINISTS WHO ARE REPRESENTED BY THE INTERNATIONAL ASSOCIATION OF MACHINIST AND AEROSPACE WORKERS AND THE 8900 FLIGHT ATTENDANTS WHO ARE REPRESENTED BY THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS MIGHT BE CONVINCED TO STRIKE A SEPARATE AGREEMENT WITHOUT THE BANKS SIMULTANEOUSLY AGREEING TO RESTRUCTURE THE DEBT THREE SMALL LABOR GROUPS WHICH TOGETHER REPRESENT A TOTAL OF ABOUT 365 EMPLOYEES HAVE REMAINED IN THE UNION COALITION AND ALONG WITH THE PILOTS SUBMITTED THE LATEST COUNTEROFFER 9303290071 930329 MERRILL LYNCH OPENS AN OFFICE IN SHANGHAI SPECIAL TO THE WALL STREET JOURNAL HONG KONG MERRILL LYNCH & CO SAID IT BECAME THE FIRST US SECURITIES FIRM TO OPEN A REPRESENTATIVE OFFICE IN SHANGHAI THE FIRM WILL EXPAND ITS MARKET RESEARCH ON THE CHINESE ECONOMY AND PLANS TO PROVIDE ADVISORY AND CONSULTATION SERVICES TO INTERNATIONAL INVESTORS ABOUT BUSINESS AND INVESTMENT OPPORTUNITIES IN CHINA MERRILL ALREADY HAS HAD SOME NOTABLE SUCCESSES IN THE COASTAL CITY HAVING WON HEATED COMPETITION TO LEADMANAGE THE INTERNATIONAL STOCK OFFERING OF SHANGHAI PETROCHEMICAL COMPLEX THE GROUP IS SCHEDULED TO BECOME THE FIRST OF CHINA'S STATEOWNED COMPANIES LISTED IN HONG KONG MERRILL ALMOST LED SHANGHAI PETROCHEMICAL AWAY FROM HONG KONG AND ONTO THE NEW YORK STOCK EXCHANGE THE CENTRAL GOVERNMENT HOWEVER SAID IT WANTED TO SEE SHANGHAI PETROCHEMICAL LIST IN HONG KONG FIRST THE FIRM ALSO HAS BEEN LEAD MANAGER FOR A FEW B SHARE OFFERINGS WHICH ARE SHANGHAI AND SHENZHEN LISTED STOCKS RESERVED FOR FOREIGNERS MERRILL SAID IT RECEIVED PERMISSION TO OPEN THE SHANGHAI OFFICE FROM THE PEOPLE'S BANK OF CHINA THE CENTRAL BANK EARLIER THIS MONTH ZHANG LIPING A VICE PRESIDENT WILL BECOME CHIEF REPRESENTATIVE FOR MERRILL IN THE NEW OFFICE ALTHOUGH THE SHANGHAI OFFICE IS MERRILL'S FIRST IN CHINA THE FIRM OPERATES IN 32 COUNTRIES AND HAD 134 BILLION IN REVENUE LAST YEAR IN A RELATED ANNOUNCEMENT MERRILL SAID IT WILL PUT 20 CHINESE FINANCIALSECTOR PROFESSIONALS THROUGH ITS INTENSIVE TRAINING PROGRAM ON GLOBAL SECURITIES MARKETS THE CHINESE WILL ARRIVE IN NEW YORK LATER THIS YEAR 9303290070 930329 THE OUTLOOK CLINTON MISSED CHANCE TO ERASE THE DEFICIT BY ALAN MURRAY WASHINGTON DURING THE LONG HOURS SPENT IN THE ROOSEVELT ROOM OF THE WHITE HOUSE ASSEMBLING THEIR ECONOMIC PLAN PRESIDENT CLINTON AND HIS ADVISERS NEVER IMAGINED CONGRESS WOULD REACT THE WAY IT HAS THEY HOPED THE PLAN WOULD PASS OF COURSE BUT THEY ALSO EXPECTED TO ENGAGE IN FIGHTS WITH MEMBERS OF CONGRESS COMPLAINING ABOUT CUTS IN MEDICARE FARM PROGRAMS OR IN GOVERNMENT EMPLOYEES' PAY AND BENEFITS NONE OF THEM EVER GUESSED TOP ADMINISTRATION OFFICIALS SAY THAT THEIR BIGGEST FIGHTS WOULD BE WITH FELLOW DEMOCRATS WHO WERE DEMANDING DEEPER SPENDING CUTS THE CANDIDATE OF CHANGE AND HIS TOP POLITICAL AND ECONOMIC ADVISERS FAILED TO GRASP JUST HOW MUCH THE MOOD OF THE NATION HAD CHANGED NOW THAT THE OUTLINES OF THAT PLAN HAVE BEEN APPROVED BY CONGRESS A FEW OF THOSE ADVISERS PRIVATELY ACKNOWLEDGE PANGS OF REGRET CONGRESS'S SUDDEN AND UNEXPECTED CONVERSION TO THE RELIGION OF DEFICIT CUTTING SUGGESTS PRESIDENT CLINTON MAY HAVE HAD A ONCEINAGENERATION OPPORTUNITY TO ENACT A PLAN THAT WOULD BEGIN TO GET RID OF THIS NATION'S ANNOYING DEFICIT PROBLEM FOR GOOD INSTEAD HE PROPOSED A PLAN THAT IS A GOOD FIRST STEP BUT STOPS SHORT OF WHAT IS NEEDED TO DO THE JOB EVEN BY ITS OWN ESTIMATES THE PRESIDENT'S PLAN NEVER GETS THE DEFICIT BELOW THE 200 BILLION MARK AND BY 1998 THE ESTIMATES SHOW THE DEFICIT SWELLING NOT SHRINKING MOREOVER DESPITE CLINTON'S INSISTENCE ON USING REALISTIC ECONOMIC ASSUMPTIONS THERE ARE SOME WHO ARGUE THAT THE PROGRAM WILL IN THE END SAVE MUCH LESS THAN ADVERTISED A PARTICULARLY DISTURBING CRITIQUE COMES FROM MARTIN FELDSTEIN WHO WAS CHAIRMAN OF PRESIDENT REAGAN'S COUNCIL OF ECONOMIC ADVISERS HE ARGUES THAT THE TAX RISE FOR THE AFFLUENT A NEW 36 RATE FOR FAMILIES' TAXABLE INCOMES EXCEEDING 140000 AND AN ADDITIONAL 10 SURTAX FOR EARNINGS OF MORE THAN 250000 WILL PROVE TO BE A BUST WIPING OUT TWOTHIRDS OF THE PLAN'S PROJECTED INCREASE IN TAX REVENUES MR FELDSTEIN NOW A PROFESSOR OF ECONOMICS AT HARVARD ISN'T JUST REPLAYING THE SUPPLYSIDE RAVINGS OF THE EARLY 1980S WHICH HELD THAT ANY INCREASE IN TAX RATES LOSES MONEY FOR THE TREASURY AND ANY DECREASE IN RATES RAISES IT THE PROBLEM WITH THAT LAFFER CURVE ARGUMENT AS ESPOUSED BY MR REAGAN JACK KEMP AND OTHERS IS THAT IT WAS APPLIED TO ALL INCOME LEVELS RAISE THE TAX RATE BY 5 OR 10 FOR A FAMILY MAKING 40000 A YEAR THEY WOULD ARGUE AND THAT FAMILY WILL WORK LESS A CONTENTION NOT BACKED BY STATISTICS OR COMMON SENSE BUT THE RICH ARE DIFFERENT THEY HAVE OPTIONS THE LESSAFFLUENT DON'T FACED WITH A SHARPLY HIGHER TAX RATE THEY CAN CHOOSE TO DEFER MORE OF THEIR INCOME THROUGH VARIOUS PENSION AND PROFITSHARING ARRANGEMENTS THEY CAN INVEST MORE IN TAXFREE MUNICIPAL BONDS THEY CAN INCREASE SPENDING ON RESIDENTIAL REAL ESTATE THEY CAN PUT MORE INTO APPRECIATING ASSETS THAT DON'T YIELD CURRENT INCOME AND THE END RESULT IS LESS TAXABLE INCOME AND LESS TAXES EVEN SOME OF MR CLINTON'S TOP ECONOMIC ADVISERS ACKNOWLEDGE THE FELDSTEIN CRITIQUE CAN'T BE EASILY DISMISSED THE CLINTON PROGRAM EXACERBATES THIS PROBLEM BY OFFERING AFFLUENT TAXPAYERS NEW WAYS TO HIDE THEIR INCOME FOR INSTANCE THE PLAN RAISES THE TOP TAX RATE ON ORDINARY INCOME FROM 31 TO AS MUCH AS 39 BUT IT DOESN'T RAISE THE 28 TAX RATE ON CAPITALGAINS INCOME THAT CREATES A HUGE NEW INCENTIVE TO PLAY INVESTMENT GAMES THAT ENABLE TAXPAYERS TO TURN ORDINARY INCOME INTO CAPITAL INCOME THERE IS ALSO A SPECIAL TAX BREAK FOR INVESTORS WHO PUT THEIR MONEY INTO SMALL BUSINESSES AND THE PLAN PROVIDES MORE GENEROUS TAX BREAKS AS ADVOCATED BY SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN FOR PEOPLE WHO MAKE DONATIONS OF ART AND OTHER APPRECIATED PROPERTY ALL OF THIS OF COURSE GOES AGAINST THE SPIRIT OF THE 1986 TAX REFORM ACT A LAW FOR WHICH PRESIDENT CLINTON HAS NO PARTICULAR AFFECTION THE DEMOCRATS ON THE HOUSE WAYS AND MEANS COMMITTEE MANY OF WHOM REMAIN COMMITTED TO THE TAXREFORM IDEA SAY PRIVATELY THEY ARE LIKELY TO GET RID OF SOME OF MR CLINTON'S NEW TAX BREAKS IN PARTICULAR THE INVESTMENTTAX CREDIT SOME OF THE MONEY SAVED MAY BE GIVEN BACK TO CORPORATIONS BY RAISING THE CORPORATE RATE TO ONLY 35 INSTEAD OF THE PROPOSED 36 IT IS NOW 34 BUT THE TAXWRITING COMMITTEES ALSO ARE LIKELY TO WIDEN THE TAX BREAK FOR INVESTORS IN SMALL BUSINESSES WHETHER MR FELDSTEIN'S ARGUMENT IS RIGHT WON'T BE CLEAR FOR YEARS BUT WHAT DOES NOW SEEM EVIDENT IS THAT PRESIDENT CLINTON COULD HAVE GOTTEN MORE DEFICIT REDUCTION IF HE HAD WANTED IT IT IS VERY CLEAR THAT THE ADMINISTRATION MISREAD THE MOOD OF THE COUNTRY SAYS CAROL COX WAIT WHO HEADS THE BIPARTISAN COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET WE WILL NEVER KNOW HOW FAR THEY COULD HAVE GONE IF THEY HAD TRIED TO PUSH THE ENVELOPE PRESIDENT CLINTON HAS GAINED A LOT FROM PROPOSING AN ECONOMIC PLAN THAT COULD WIN RELATIVELY EASY APPROVAL IN CONGRESS HE HAS MANAGED TO CREATE THE IMPRESSION OF A SUCCESSFUL PRESIDENCY AND THAT WILL CERTAINLY HELP HIM LATER THIS YEAR WHEN HE TAKES HIS COMPLICATED HEALTHCARE PLAN TO CONGRESS HE HAS ALSO MANAGED TO KEEP THE INVESTMENT PROGRAM THAT HE SO VALUES LARGELY INTACT AND HIS DEFICITCUTTING PLAN WAS CREDIBLE ENOUGH TO WIN KUDOS IN THE FINANCIAL MARKETS HELPING TO DRIVE DOWN LONGTERM INTEREST RATES AND GIVING THE ECONOMY A BOOST BUT WHAT MR CLINTON HASN'T DONE IS TO GET THE DEFICIT PROBLEM BEHIND HIM BEFORE HIS PRESIDENCY ENDS IT WILL BE BACK 9303290069 930329 DEFENSE BUDGET DEFERS DECISIONS ON WEAPONS ASPIN DECLINES TO TERMINATE ANY PROGRAMS MAKES ACROSSTHEBOARD CUTS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE 263 BILLION 1994 DEFENSE BUDGET UNVEILED BY DEFENSE SECRETARY LES ASPIN FAILS TO TERMINATE ANY MAJOR WEAPONS SYSTEMS AND SO DEFERS UNTIL NEXT YEAR'S BUDGET A RAFT OF TOUGH DECISIONS THIS IS A VERY CAUTIOUS BUDGET ON THE WEAPONS SIDE FOLKS MR ASPIN SAID AT A PENTAGON PRESS CONFERENCE SATURDAY DESCRIBING IT ESSENTIALLY AS A BUSH ADMINISTRATION PRODUCT THAT HE HAD ONLY ALTERED SLIGHTLY HE SAID WE HAVE MARGINAL CONTROL OVER IT LOOKING FOR FAST SAVINGS THE PROPOSED BUDGET TAKES ITS BIGGEST WHACK FROM THE PROCUREMENT ACCOUNT WHICH IS TO BE CUT 17 TO 455 BILLION IN THE FISCAL YEAR STARTING NEXT OCT 1 FROM 536 BILLION THIS YEAR BUT IT DOES THAT BY TRIMMING PROGRAMS ACROSS THE BOARD RATHER THAN BY TERMINATING INDIVIDUAL PROGRAMS AS MR ASPIN HAD INDICATED EARLIER THAT HE WANTED TO DO UNTIL HE AND HIS AIDES COMPLETE LATER THIS YEAR A BOTTOMUP REVIEW OF THE ROLE OF THE US MILITARY IN THE POSTCOLD WAR WORLD MR ASPIN SAID HE IS PUTTING OFF SEVERAL BRUISING DECISIONS AMONG THOSE ARE WHICH TACTICAL AIRCRAFT PROGRAM TO KILL WHETHER TO STRIP THE NAVY OF THE DEEPSTRIKE LONGRANGE BOMBING MISSION HOW TO SUBSIDIZE THE NUCLEAR SUBMARINE INDUSTRY AND WHAT TO DO ABOUT TROUBLED PROGRAMS SUCH AS THE C17 MILITARY CARGO JET AND THE V22 OSPREY TILTROTOR AIRCRAFT BUT THERE IS ALSO GOOD POLITICAL SENSE IN DEFERRING TOUGH DECISIONS THAT INEVITABLY WILL OUTRAGE SOME IN THE ARMED SERVICES AND CONGRESS AT A TIME WHEN PRESIDENT CLINTON ALREADY IS ON SHAKY GROUND WITH MANY BECAUSE OF HIS LACK OF SENSITIVITY TO THE MILITARY AND HIS PROPOSALS TO LIFT ITS BAN ON GAYS AND TO FREEZE GOVERNMENT PAY HIS ADMINISTRATION HARDLY NEEDS TO OPEN A NEW FRONT WITH THE MILITARY INDEED MR ASPIN'S FIRST DEFENSE BUDGET SEEKS TO ALLAY MILITARY CONCERNS BY BOOSTING SPENDING FOR MILITARY TRAINING AND READINESS AND FOR MORALERELATED CONSTRUCTION SUCH AS BARRACKS IMPROVEMENTS WHAT WE REALLY WANT TO DO HERE IS TO MAKE VERY VERY SURE WE DO NOT HAVE HOLLOW FORCES MR ASPIN SAID EMPLOYING A TERM OFTEN USED TO DESCRIBED THE DEMORALIZED US MILITARY OF THE 1970S THE QUALITY AND READINESS OF THE US MILITARY WILL BE WATCHED IN COMING YEARS AS THE CLINTON ADMINISTRATION PLANS TO SHRINK THE DEFENSE BUDGET TO ABOUT 3 OF THE GROSS DOMESTIC PRODUCT IN 1998 A LEVEL NOT SEEN SINCE THE START OF WORLD WAR II MILITARY READINESS COULD BECOME AN ISSUE IN THE 1994 OR 1996 ELECTION CAMPAIGNS IF OFFICERS BEGIN COMPLAINING THAT THEIR ABILITY TO FIGHT IS BEING DEGRADED DISCUSSING THE PLANNED CUTS IN THE ARMY WHICH CURRENTLY HAS ABOUT 600000 ACTIVEDUTY MEMBERS A SENIOR ARMY OFFICER SAID HE WAS CONCERNED THAT SOME UNITS ALREADY HAVE TOO MANY VACANCIES THAT'S THE BEGINNING OF HOLLOWNESS HE SAID I WON'T TELL YOU THAT THE ARMY IS HOLLOW TODAY BUT WE'RE WATCHING IT VERY CLOSELY HOWEVER OTHERS ARGUE THAT THE MILITARY IS ONLY BEGINNING TO ADJUST TO THE NEW ENVIRONMENT OF THE POSTCOLD WAR WORLD FOR EXAMPLE ONE INFLUENTIAL ANALYST HARLAN ULLMAN OF THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES ARGUES THAT WITHIN A FEW YEARS THE MILITARY WILL NEED TO SHRINK BELOW ONE MILLION ACTIVEDUTY PERSONNEL COMPARED WITH ABOUT 17 MILLION TODAY IN EXPLAINING HIS FIRST PENTAGON BUDGET MR ASPIN SAID HE WAS BEGINNING THE SHIFT AWAY FROM THE DECADESLONG PRACTICE OF GEARING THE US MILITARY TO RESPOND TO THE SOVIET THREAT HE REJECTED THE ARGUMENT THAT A RESURGENT RUSSIA MIGHT WITHIN A FEW YEARS FORCE THE CLINTON ADMINISTRATION TO RECONSIDER ITS DEFENSE BUDGET PLANS IF YOU'VE GOT A RUSSIA WHICH REVERSES COURSE AND BEGINS TO BE A THREAT AGAIN IT WOULD BE A THREAT MAINLY TO ITS NEIGHBORS BEFORE IT WOULD BE BACK TO THE OLD WARSAW PACT THREAT TO WESTERN EUROPE OR TO THE UNITED STATES HE SAID YET CHUNKS OF THE COLD WAR LIVE ON IN MR ASPIN'S PROPOSED BUDGET FOR EXAMPLE AT A TIME WHEN THE US IS SLASHING ITS INVENTORY OF NUCLEAR WEAPONS THE NAVY IS SCHEDULED TO SPEND 117 BILLION AN INCREASE FROM 1993 TO ACQUIRE TRIDENT II SUBMARINELAUNCHED BALLISTIC MISSILES ASKED WHY A DEFENSE OFFICIAL SAID THERE HAS BEEN NO CHANGE IN OUR NATIONAL STRATEGY UNTIL THERE IS HE SAID THE NAVY EXPECTS TO PURCHASE TRIDENTS SIMILARLY THE AIR FORCE PLANS TO OPERATE 191 MANNED BOMBERS IN 1994 DESPITE A SUGGESTION EARLIER THIS YEAR FROM MR ASPIN'S OFFICE THAT IT CONSIDER HALVING THAT FORCE COMMENTING ON OTHER PROGRAMS MR ASPIN GAVE ALMOST ANGRY ENDORSEMENTS TO BOTH THE C17 WHICH IS BUILT BY MCDONNELL DOUGLAS CORP AND THE V22 TROOP TRANSPORT WHICH IS BUILT BY UNITS OF TEXTRON INC AND BOEING CO ON THE C17 HE SAID WE THINK IT'S A VERY IMPORTANT PROGRAM THOUGHT IT WAS WHEN WE WERE IN CONGRESS AND ARE VERY DISTURBED THAT IT SEEMS SO BOLLIXED UP LATER HE LUMPED THE TWO TROUBLED PROGRAMS TOGETHER AS ONES WHERE WE THINK THERE'S A NEED BUT WE'VE ALSO GOT A PROBLEM OF WHETHER IN FACT THE CURRENT PROGRAM IS GOING TO BE ABLE TO PULL ITSELF TOGETHER AND BE ABLE TO DELIVER 9303290068 930329 CREDIT RATINGS AIR & WATER TECHNOLOGIES CORP BRANCHBURG NJ STANDARD & POOR'S CORP LOWERED ITS SUBORDINATED DEBT RATING ON AIR & WATER TO SINGLEBMINUS FROM SINGLEBPLUS AND ON SUBSIDIARY RESEARCHCOTTRELL INC'S SENIOR DEBT TO SINGLEBPLUS FROM DOUBLEB THE DOWNGRADES AFFECT A COMBINED TOTAL OF ABOUT 118 MILLION OF DEBT SECURITIES THE LOWERED RATINGS REFLECT THE COMPANY'S WEAK OPERATING PERFORMANCE A RESULT OF THE WEAK ECONOMY PROFIT MARGIN PRESSURES DELAYS IN CONTRACT AWARDS AND SIZABLE WORKING CAPITAL NEEDS AIR & WATER PROVIDES SERVICES AND EQUIPMENT FOR AIR POLLUTION WATER SUPPLY AND WASTEWATER TREATMENT FOODMAKER INC SAN DIEGO STANDARD & POOR'S CORP SAID IT PLACED THE FASTFOOD CHAIN'S DOUBLEB MINUS SENIOR DEBT RATING AND SINGLEB SUBORDINATED DEBT RATING ON REVIEW WITH NEGATIVE IMPLICATIONS ABOUT 392 MILLION OF DEBT IS AFFECTED THE RATINGS AGENCY ATTRIBUTED THE MOVE TO FOODMAKER'S ANNOUNCEMENT THAT IT EXPECTS SUBSTANTIALLY LOWER RESULTS FOR THE SECOND QUARTER ENDING APRIL 11 IN THE WAKE OF A FOODPOISONING OUTBREAK A RESULTING LOSS OF BUSINESS AND POTENTIAL LEGAL LIABILITY A FOODMAKER SPOKESWOMAN SAID THE COMPANY HAS BEEN IN TALKS WITH S&P BUT WOULDN'T COMMENT FURTHER 9303290067 930329 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 119 DAYS 310 120 TO 149 DAYS 313 150 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 316 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 280 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 315 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 305 90 DAYS 307 120 DAYS 310 150 DAYS 312 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 5/16 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 22 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 294 13 WEEKS 305 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 743 60 DAYS 753 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 742 60 DAYS 752 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 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 9303290066 930329 CORPORATE FOCUS IBM JAPAN BEGINS TO SHOW SYMPTOMS OF PARENT'S ILLNESS AS MAINFRAME SALES DECLINE UNIT TRIES TO FOCUS ON SOFTWARE AND SERVICE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO DURING THE PAST 65 YEARS IBM JAPAN LTD MANAGED TO RACK UP AN IMPRESSIVE STRING OF ACHIEVEMENTS IT SINGLEHANDEDLY CREATED A MARKET FOR MAINFRAME COMPUTERS IN JAPAN DOMINATED IT FOR MORE THAN 20 YEARS AND ADAPTED SO WELL THAT IT CAME TO APPEAR MORE JAPANESE THAN AMERICAN THESE DAYS HOWEVER THE PROBLEMS OF PARENT INTERNATIONAL BUSINESS MACHINES CORP ARE BEING VISITED ON THE SUBSIDIARY WHICH ACCOUNTS FOR ROUGHLY 11 OF THE OVERALL COMPANY'S SALES LIKE IBM ITSELF IBM JAPAN HAS BEEN HIT HARD BY DECLINING SALES OF ITS HIGHLY PROFITABLE MAINFRAME COMPUTERS WHICH FACE TOUGH COMPETITION FROM AN ARRAY OF CHEAPER SMALLER AND INCREASINGLY POWERFUL COMPUTERS ITS FORMER NEARMONOPOLY ON FOREIGN COMPUTER SALES IN JAPAN HAS BEEN CHALLENGED BY A VARIETY OF UPSTARTS RANGING FROM SUN MICROSYSTEMS INC TO PERSONAL COMPUTER RIVALS COMPAQ COMPUTER CORP AND DELL COMPUTER CORP SOME ANALYSTS SAY THAT WITHIN A FEW YEARS IBM JAPAN COULD FARE EVEN WORSE THAN ITS PARENT SINCE ITS PERSONAL COMPUTER AND WORKSTATION BUSINESS IN JAPAN IS MUCH WEAKER THAN IN THE US ALTHOUGH MAINFRAME SALES IN JAPAN HAVE MERELY FLATTENED INSTEAD OF DROPPING LIKE A ROCK AS IN THE US IBM JAPAN IS ALREADY SUFFERING FROM THE UPHEAVAL IN ITS INDUSTRY FRIDAY THE COMPANY SAID 1992 PRETAX PROFIT DROPPED 74 TO 2677 BILLION YEN 2282 MILLION FROM 10352 BILLION YEN IN 1991 LARGELY BECAUSE OF WEAK MAINFRAME ORDERS THAT FIGURE DOESN'T INCLUDE AN EXTRAORDINARY LOSS OF 1621 BILLION YEN WHICH THE COMPANY ATTRIBUTED MOSTLY TO THE COSTS OF RESTRUCTURING ITS MANUFACTURING FACILITIES AND AN EARLY RETIREMENT PROGRAM INTENDED TO TRIM THE COMPANY'S WORK FORCE BY ALMOST 5 INCLUDING THAT SPECIAL CHARGE IBM JAPAN'S PRETAX PROFIT FELL BY A FULL 90 SALES MEANWHILE FELL BY 14 TO 1255 TRILLION YEN FROM 1272 TRILLION YEN THE COMPANY HOWEVER INSISTS THAT THINGS WON'T GET MUCH WORSE IT POINTS TO ITS TWOPRONGED STRATEGY OF EMPHASIZING SOFTWARE AND SERVICES WHILE DEVELOPING PC AND WORKSTATION SALES AS EVIDENCE THAT IT CAN BOTH RECOUP ITS SLUMPING PROFITS AND RECAPTURE THE INITIATIVE IN THE JAPANESE MARKET IT'S A RISKY MOVE BECAUSE SERVICES TRADITIONALLY BRING LOWER PROFIT THAN MAINFRAME SALES WHAT'S MORE ALL ITS BETS COULD BE OFF AS FORMER RJR NABISCO CHAIRMAN LOUIS GERSTNER JR TAKES THE HELM OF IBM CORP MR GERSTNER HAS PLEDGED TO REEXAMINE EVERY PART OF THE COMPANY EVEN IF IBM JAPAN'S GAMBLES ARE SUCCESSFUL HOWEVER THE COMPANY CLEARLY HAS A LONG WAY TO GO ANALYSTS SAY IBM JAPAN HAS BEEN SLOW TO RESTRUCTURE ITS INTERNAL OPERATIONS AND COULD END UP TRYING TO COVER HIGH PAYROLL AND FACILITIES COSTS WITH SHRINKING REVENUE THE COMPANY IS DYING IN TERMS OF PROFITS SAYS NAOKI SATO A TECHNOLOGY ANALYST WITH MERRILL LYNCH IN TOKYO OF COURSE WHAT IT'S DOING IS BETTER THAN DOING NOTHING BUT STILL THEY WILL CONTINUE TO HAVE TOUGH TIMES IN THE NEXT TWO OR THREE YEARS IBM JAPAN'S PLAN TO EMPHASIZE SOFTWARE AND SERVICES A PHRASE IBM CORP OFFICIALS TEND TO RECITE LIKE A MANTRA STEMS FROM A SIMPLE IDEA CONVINCED THAT THE TREND TOWARD CHEAPER COMPUTERS HAS VASTLY RESTRICTED THE HIGH PROFITS IT ONCE ENJOYED FROM SALES OF BIG IRON IBM CORP BEGAN SEVERAL YEARS AGO TO EMPHASIZE CUSTOMIZED SOFTWARE APPLICATIONS AND SERVICES SUCH AS MAINTENANCE AND NETWORK MANAGEMENT WHERE SHIFTING ITS BUSINESS AWAY FROM HARDWARE IS CONCERNED EVEN IBM CORP EXECUTIVES SUCH AS PETE SCHAVOIR DIRECTOR OF STRATEGY SAY IBM JAPAN HAS SET THE PACE FOR ITS PARENT IN JANUARY IBM JAPAN SPUN OFF A SEMIAUTONOMOUS CONCERN SPECIFICALLY TO HANDLE ITS SERVICE BUSINESS IN 1992 FULLY 47 OF IBM JAPAN'S REVENUE CAME FROM SOFTWARE AND SERVICES SAYS COMPANY PRESIDENT KAKUTARO KITASHIRO THAT COMPARES WITH ONLY 38 OF SALES FOR THE PARENT COMPANY THOUGH THE DIFFERENCE MAY BE SOMEWHAT SMALLER BECAUSE OF DIFFERENT ACCOUNTING STANDARDS USED IN THE US OF COURSE THE 47 FIGURE PARTLY REFLECTS THE DISMAL SALES OF IBM'S MAINFRAMES IN JAPAN MR KITASHIRO HOWEVER INSISTS THAT THE SERVICE BUSINESS IS GROWING AT A BRISK RATE ALTHOUGH HE DECLINED TO GIVE SPECIFIC NUMBERS HE SAID IBM JAPAN'S SOFTWARE AND SERVICES SALES GREW IN DOUBLE DIGITS LAST YEAR EVEN AS HARDWARE SALES FELL ALSO BY DOUBLE DIGITS THE HIGHEST GROWTH A RATE OF 40 MR KITASHIRO SAYS CAME IN SYSTEMS INTEGRATION A SERVICE THROUGH WHICH IBM JAPAN HOOKS TOGETHER ALL OF A CUSTOMER'S COMPUTERS EVEN IF THEY'RE MADE BY DIFFERENT COMPANIES IBM JAPAN HAS HIGH HOPES BOTH FOR THAT SERVICE AND FOR OUTSOURCING IN WHICH IT ACTUALLY RUNS A CUSTOMER'S DATA PROCESSING CENTER THE COMPANY SAYS IT EXPECTS ITS OUTSOURCING BUSINESS TO GROW AT AN ANNUAL RATE OF MORE THAN 9 DURING THE NEXT FIVE YEARS TO 513 BILLION YEN IN 1997 FROM 330 BILLION YEN IN 1992 WHILE IT EXPECTS ITS NETWORK SERVICES TO EXPAND EVEN FASTER DURING THE PERIOD BY MORE THAN 13 A YEAR TO 460 BILLION YEN FROM 245 BILLION YEN MR KITASHIRO SAYS HE BELIEVES THE SERVICE BUSINESS WILL GROW FAST ENOUGH TO SUPPORT IBM JAPAN AT ITS CURRENT SIZE OF ABOUT 25000 EMPLOYEES JUST UNDER HALF OF THE COMPANY'S SERVICE BUSINESS HOWEVER IS MAINTENANCE WHICH IN TURN DEPENDS ON A HEALTHY MAINFRAME MARKET SOMETHING FEW ANALYSTS EXPECT TO LAST FOR LONG EVEN IN JAPAN MEANWHILE IBM JAPAN'S ATTEMPTS TO BREAK INTO THE LOWEREND COMPUTER MARKETS HAVE BEEN SLOW TO BEAR FRUIT ALTHOUGH IT HAS SOLD PERSONAL COMPUTERS IN JAPAN SINCE 1985 IT HOLDS A MERE 8 OF THE MARKET A SLIVER COMPARED WITH NEC CORP WHICH CONTROLS MORE THAN HALF OF THE MARKET BACK IN 1990 IBM JAPAN DID RELEASE DOS/V THE FIRST OPERATING SYSTEM SOFTWARE THAT MADE IT POSSIBLE FOR US PCS TO RUN JAPANESELANGUAGE SOFTWARE SO FAR HOWEVER IT SEEMS MAINLY TO HAVE HANDED A BATTERING RAM TO COMPETITORS SUCH AS COMPAQ AND DELL WHO HAVE USED DOS/V AS A WEDGE TO LAUNCH A FULLSCALE PC PRICE WAR IN JAPAN ONE OF THE FEW UNAMBIGUOUSLY ENCOURAGING TRENDS FOR IBM JAPAN IS THE FACT THAT MOST OF ITS COMPETITORS ARE DOING FAR WORSE NEC AND FUJITSU LTD ARE FORECASTING LOSSES OF 43 BILLION YEN AND 10 BILLION YEN RESPECTIVELY FOR THE FISCAL YEAR ENDING MARCH 31 TOSHIBA CORP AND HITACHI LTD MEANWHILE REMAIN PROFITABLE BUT ONLY BECAUSE BOTH COMPANIES MAKE ELECTRICAL POWER SYSTEMS NOW A BOOMING BUSINESS IN JAPAN 9303290065 930329 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR FEBRUARY'S EXPLOSIVE JOB GROWTH WILL BE A TOUGH ACT TO FOLLOW NONFARM PAYROLL JOBS SWELLED BY 365000 IN FEBRUARY SURPASSING THE TOTAL OF THE PREVIOUS FIVE MONTHS IT WAS A BIG SURPRISE TO EVERYONE AND LIKELY WON'T BE REPEATED IN MARCH SAID SANDRA SHABER AN ECONOMIST AT WEFA GROUP SHE SAID THE LABOR DEPARTMENT'S EMPLOYMENT REPORT TO BE RELEASED THIS WEEK PROBABLY WILL SHOW THAT THE ECONOMY PICKED UP ABOUT 100000 PAYROLL JOBS IN MARCH MS SHABER ADDED SHE IS LOOKING FOR THE UNEMPLOYMENT RATE TO REMAIN AT 7 MS SHABER SAID THAT ALTHOUGH JOB GAINS WERE EXPECTED IN THE MEDICAL AND BUSINESS SERVICES INDUSTRIES THERE PROBABLY WERE LOSSES IN THE CONSTRUCTION AND RETAIL SECTORS WHICH SUFFERED FROM NASTY WEATHER IN MARCH A GAIN OF 100000 PAYROLL JOBS IN MARCH WOULD BE IN LINE WITH THE UNDERLYING TREND SHE SAID WE'RE EXPECTING THAT TO RISE TO ABOUT 150000 TO 200000 PER MONTH IN THE SECOND HALF OF THE YEAR MS SHABER ADDED A SEPARATE REPORT ALSO DUE OUT THIS WEEK PROBABLY WILL SHOW A SLOWDOWN IN THE GROWTH OF PERSONAL INCOME AND SPENDING SHE SAID THEY'RE STILL EXPANDING WE'RE NOT SEEING A DECLINE BY ANY MEANS JUST A SLOWING MS SHABER SAID 9303290064 930329 ROAR OF AIRBOATS MAY SOMEDAY RATTLE SLEEPY CONGO RIVER GIANT MODEL OF A CRAFT DEVISED FOR FLORIDA FROG HUNTERS NEARS PASSENGER SERVICE BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL BRAZZAVILLE CONGO IF THE CONGO RIVER BECOMES AN AIRBOAT FREEWAY AND IT COULD YOU CAN THANK PIERRE EON GENTLE BEN AND REGGIE CAUSEY MR EON A FRENCH ENTREPRENEUR EXPLAINS WATCHING FRENCH TV AS A YOUNGSTER HE STUMBLED UPON AN EPISODE OF GENTLE BEN A CORNY AMERICAN SHOW ABOUT A PET BEAR LOPING ABOUT THE EVERGLADES SHADOWED BY FRIENDLY FOLK IN AN AIRBOAT THE BEAR MADE NO IMPRESSION BUT THE BOAT DID SUCH A WONDERFUL MACHINE I KNEW I WOULD ONE DAY BUILD ONE SAYS MR EON PERHAPS THE IRONY OF A FRENCHMAN FALLING IN LOVE WITH A CONTRAPTION DESIGNED TO CARRY AMERICAN FROG HUNTERS INTO THE DEEP SWAMP WAS TOO MUCH HE GREW UP WENT TO LAW SCHOOL PRACTICED LAW LONG AIRBOATLESS YEARS PASSED BUT IN 1989 MR EON REKINDLED HIS DREAM TO ZIP AROUND THE WETLANDS NEAR HIS FRENCH HOMETOWN OF NANTES HE BUILT HIMSELF A SMALL AIRBOAT A FLATBOTTOMED CRAFT THAT SCOOTS ALONG IN JUST AN INCH OR TWO OF WATER PUSHED BY AN AIRPLANE ENGINE AND PROPELLER MOUNTED ON THE STERN HOOKED HE STARTED AN AIRBOAT COMPANY THEN LAST YEAR HE GOT SERIOUS HE MADE A PILGRIMAGE TO THE EVERGLADES THE WATERY WOMB OF AIRBOATING AND TRACKED DOWN MR CAUSEY A TWANGTALKING AIRBOAT WIZARD AND SUPPLIER OF AIRBOAT ENGINES USING MR CAUSEY'S ENGINES HE BUILT THE KING KONG OF AIRBOATS A 55FOOT EIGHTTON 40PASSENGER BEHEMOTH NOW HERE IT SITS ON THE MIGHTY CONGO IF IT DOES WHAT IT IS SUPPOSED TO DO RUN AT HIGH SPEEDS UNDETERRED BY SANDBARS CROCODILEINFESTED MUDFLATS AND EVEN MARSHY HIPPO HAUNTS THE BOAT COULD REVOLUTIONIZE TRANSPORT ON THE 2900MILELONG CONGO FORGET LAZY STEAMERS STRUGGLING FOR TWO WEEKS TO PORTS UPSTREAM AIRBOATS COULD CUT THE JOURNEY TO A DAY OR TWO AND GO WHERE NO STEAMER HAS GONE BEFORE I CAN SEE 50 AIRBOATS HERE ONE DAY MAYBE 100 SAYS MR EON IT IS POSSIBLE SEEING AS HOW THE TWO REGULAR CONGO RIVERBOATS RUN BY THE BANKRUPT GOVERNMENT OF ZAIRE HAVEN'T RUN AT ALL IN FIVE MONTHS BUT WHETHER ANYONE SEES THIS AS A CHANCE TO INVEST IN AN AIRBOAT FLEET IS UNCERTAIN THIS BOAT HAS BEEN BOUGHT ASSUMING A SUCCESSFUL SHAKEDOWN CRUISE BY A QUASIPUBLIC CONGOLESEFRENCH COMPANY CALLED GAS CONGO FORMED BY A RETIRED FRENCH OIL WORKER WITH CONGO CONNECTIONS IT PAID ABOUT 550000 INCLUDING SHIPPING AND WILL USE THE BOAT FOR PURPOSES NO ONE IS EAGER TO EXPLAIN BUT THE CONGOLESE GOVERNMENT IS BROKE AND ZAIRE ACROSS THE RIVER IS NOT ONLY BROKE BUT ON THE BRINK OF ANARCHY SUCH CONJECTURAL MATTERS ARE PREMATURE FOR AT THE MOMENT THE WORLD'S LARGEST AIRBOAT HAS YET TO PROVE ITS CONGO METTLE IT HAS BEEN TIED UP AT A SHABBY CONGOLESE GOVERNMENT DOCK AWAITING A FEW ESSENTIALS LIKE ANOTHER ENGINE AND FUEL THE EXTRA ENGINE IS NECESSARY BECAUSE IN A BRIEF TEST VOYAGE THE TWO 454CUBICINCH ENGINES THAT DRIVE THE BOAT'S STERNMOUNTED AIRPLANE PROPELLERS PROVED INADEQUATE TO PUSH THE BOAT MORE THAN ABOUT 15 MILES PER HOUR THAT IS SHORT OF THE 45 MPH PROPHESIED AND TOO SLOW TO HOP OVER SANDBARS AS FOR FUEL THE WORLD'S BIGGEST AIRBOAT REQUIRES HIGHOCTANE GASOLINE AND ITS TEST VOYAGE SEEMS TO HAVE BURNED UP THE CONGO'S ENTIRE SUPPLY EVERYTHING IN THIS DESULTORY NATION OF 2 1/2 MILLION SEEMS TO RUN ON REGULAR IF AT ALL THE CONGOLESE GOVERNMENT APPARENTLY ON ORDERS FROM ON HIGH HAS SENT ITS MINIONS OUT SEARCHING FOR PREMIUM BUT THE QUEST FOR HIGHTEST HAS THUS FAR PRODUCED LOW REWARDS THE THIRTYSOMETHING MR EON ACKNOWLEDGES THESE AND OTHER PROBLEMS AS HE TAKES A VISITOR ON A TOUR OF HIS ALUMINUMHULLED MONSTER IT IS A DAY OF STUPENDOUS HEAT WHEN SWEAT CASCADES FROM EVERY PORE AND EVEN MR EON'S MODISH CREW CUT HAS GIVEN UP AND FALLEN OVER PLASTERED TO HIS HEAD THE AIRBOAT HAS NO WINDOWS AND NO AIR CONDITIONING MR EON MAKES SAWING MOTIONS TO INDICATE THE SOLUTION TO THIS PROBLEM WINDOWS WILL BE CUT INTO THE PLEXIGLAS CABIN WHEN MR EON SHRUGS SOON NOTHING CAN HAPPEN SOON ENOUGH FOR MR CAUSEY COOWNER OF DIAMONDBACK AIRBOATS COCOA FLA ONE EVENING IN THE DOWNSTAIRS BAR OF THE HOTEL M'BAMOU PALACE MR CAUSEY IS STILL TRYING TO FIGURE OUT HOW HE GOT TALKED INTO COMING HERE HIS IDEA OF ADVENTURE IS A LONG WEEKEND AT THE MIAMI BOAT SHOW TRYING TO SELL A FEW OF HIS OWN AIRBOATS HIS COMPANY CRANKS OUT 50 TO 100 OF THEM A YEAR MOSTLY FOR FROG HUNTERS AND SWAMP STOMPERS HE HAS NEVER BEFORE SET FOOT OUTSIDE THE US NOW HE SITS WITH MR EON AND A GAGGLE OF FRENCH TECHNICIANS DRINKING BIG GREEN BOTTLES OF NGOK CONGO'S ANSWER TO BUDWEISER AND FEELING LEFT OUT THE FRENCH CREW SPEAKS LITTLE ENGLISH AND MR CAUSEY HAS JUST LEARNED HIS FIRST FRENCH WORD BONJOUR HE IS WORKING ON MONSIEUR THE LANGUAGE BARRIER MAKES THINGS TRICKY AS SUPPLIER OF THE AIRBOAT'S ENGINES MR CAUSEY IS RESPONSIBLE FOR STRAPPING ON THE THIRD ENGINE HE NEEDS NOW AND THEN TO COMMUNICATE THEY TOLD ME I'D HAVE AN INTERPRETER AND A BODY GUARD HE SAYS I AIN'T SEEN EITHER ONE MR CAUSEY HAS BEEN IN THE FRENCHSPEAKING CONGO FOR ABOUT A WEEK THE THIRD ENGINE HAS BEEN AIRFREIGHTED FROM THE US BUT SEEMS TO BE LOST IN TRANSIT ALONG WITH OTHER VITAL PARTS HE CAN'T GET THE PHONES TO WORK AND WHEN HE DOES HE CAN'T SPEAK TO THE PEOPLE ON THE OTHER END EVERYTHING ON EVERY MENU IS IN FRENCH AND UNRECOGNIZABLE HE HAS LOST 10 POUNDS HE IS DYING FOR SOME CHEESE STICKS OVERJOYED TO FIND ANOTHER ENGLISH SPEAKER MR CAUSEY RELATES THE TWISTING TALE OF THE BOAT A YEAR AGO MR EON SENT TWO FRENCH STUDENTS ON A FLORIDA AIRBOATENGINE SEARCH THEY FOUND MR CAUSEY IN THE YELLOW PAGES AND KNOCKED ON HIS DOOR LATER MR EON WENT TO FLORIDA WITH AN INTERPRETER FRENCH ENGINES IT TURNS OUT ARE ENTIRELY TOO WIMPY TO POWER THE WORLD'S LARGEST AIRBOAT A DEAL WAS STRUCK MR CAUSEY WAS UNDER THE IMPRESSION HE HAD SOLD ABOUT 40 ENGINES BUT IT TURNED OUT TO BE JUST A COUPLE BEFORE HE KNEW IT HE HAD HIS FIRSTEVER PASSPORT AND A PLANE TICKET TO THE CONGO EVENTUALLY THE LOST ENGINE TURNS UP AT THE BRAZZAVILLE AIRPORT THOUGH A TRUCK TO TOW IT TO THE DOCKS IS STILL MISSING MR EON DECIDES ON DIRECT ACTION PAYING A VISIT TO CONGO PRESIDENT PASCAL LISSOUBA THE PRESIDENT'S CONNECTION TO THE AIRBOAT IS FOGGY BUT HIGHOCTANE GASOLINE MIRACULOUSLY SEEMS TO HAVE BEEN FOUND BEFORE LONG MR CAUSEY FINDS HIMSELF ACTUALLY DOING SOMETHING IN THE CONGO BOLTING ON THE FINAL ENGINE HE WORKS THROUGH THE NIGHT AT DAWN THE ENGINES ARE FIRED UP AND THE WORLD'S LARGEST AIRBOAT ROCKETS UP ONTO A GLIDE AND GOES SKIMMING ALONG THE SHALLOW WESTERN BANKS OF THE CONGO RIVER SHIRTLESS MEN IN ANCIENT DUGOUT CANOES GAZE IN WONDER THEN THEY DROP THEIR PADDLES AND SLAP THEIR HANDS OVER THEIR EARS THE WORLD'S LARGEST AIRBOAT MAY ALSO BE THE WORLD'S NOISIEST WITH A FLEET OF THEM THE PLACID CONGO WOULD SOUND MORE LIKE KENNEDY AIRPORT BUT MR EON IS THRILLED THE BOAT TRAVELS AT BETTER THAN 30 MPH AND BLASTS RIGHT OVER A SANDBAR THAT SNAGS THE BRAZZAVILLE FERRY EACH DAY MR CAUSEY ALSO IS THRILLED HE GETS ON A PLANE AND LEAVES THE CONGO BUT MAYBE NOT FOREVER BY PHONE FROM FLORIDA IT IS CLEAR MR CAUSEY HAS CAUGHT CONGO AIRBOAT FEVER OVER 10 YEARS I SEE 500 BOATS THERE HE SAYS AS FOR CURRENT ORDERS NONE 9303290063 930329 BUSINESS BRIEF OCELOT ENERGY INC ENERGY SERVICES BUSINESSES TO BE SPUN OFF TO HOLDERS OCELOT ENERGY INC SAID IT PLANS TO SPIN OFF TO SHAREHOLDERS MOST OF ITS ENERGY SERVICES BUSINESSES IN ORDER TO CONCENTRATE ON ITS CORE OIL AND NATURAL GAS EXPLORATION ACTIVITIES UNDER THE PLAN OCELOT SHAREHOLDERS WOULD RECEIVE SHARES IN THE LYNX ENERGY SERVICES INC SUBSIDIARY COMPRISING CONTRACT DRILLING AND OIL FIELD EQUIPMENT BUSINESSES IN THE US AND CANADA AND ITS CANADIAN SMALL DIAMETER PIPELINE CONSTRUCTION BUSINESS THE TRANSACTION IS SUBJECT TO VARIOUS APPROVALS W DAVID LYONS OCELOT'S PRESIDENT SAID THE BUSINESSES TO BE SPUN OFF HAVE ASSETS OF 30 MILLION TO 40 MILLION CANADIAN DOLLARS US24 MILLION TO US32 MILLION AND NO DEBT HE EXPECTS THE BUSINESSES TO GENERATE INCREASED CASH FLOW THIS YEAR OF ABOUT C5 MILLION UP FROM ABOUT C1 MILLION LAST YEAR BECAUSE OF RECENT GAINS IN NATURAL GAS PRICES OCELOT HAD TOTAL CASH FLOW LAST YEAR OF C312 MILLION OCELOT OF CALGARY ALBERTA WILL RETAIN ITS LARGEDIAMETER PIPELINE CONSTRUCTION BUSINESS BUT MIGHT DISPOSE OF THIS IN THE FUTURE MR LYONS SAID 9303290062 930329 BUSINESS BRIEF DAIEI INC SECURITIES VALUATIONS LOSSES WERE 2035 MILLION FOR YEAR JAPANESE SUPERMARKET OPERATOR DAIEI INC REPORTED THAT ITS LOSSES ON SECURITIES VALUATIONS TOTALED 2371 BILLION YEN 2035 MILLION IN THE YEAR ENDED FEB 28 A FIGURE 2 1/2 TIMES THE COMPANY'S NET PROFIT IN THE PRECEDING YEAR BUT THE COMPANY SAID THOSE LOSSES WERE OUTWEIGHED BY INCOME FROM SECURITIES WHICH TOTALED 5456 BILLION YEN IN THE RECENT SIX MONTHS TO LEAVE THE FIRM IN THE BLACK FOR SECURITIES INVESTMENTS BY MORE THAN 31 BILLION YEN UNDER TOKYO STOCK EXCHANGE RULES COMPANIES MUST ANNOUNCE SECURITIESVALUATION LOSSES WHEN THEY TOTAL 30 OR MORE OF THE PREVIOUS YEAR'S PRETAX PROFIT OR NET PROFIT DAIEI HAD NET PROFIT OF 931 BILLION YEN IN THE FISCAL YEAR ENDED FEB 28 1992 THE SECURITIES VALUATION LOSSES FOR THE RECENT YEAR REPRESENTED 84 OF THE PRECEDING YEAR'S PRETAX PROFIT OF 2754 BILLION YEN THEY ALSO AMOUNTED TO 23 OF THE PRIOR YEAR'S OVERALL ASSETS OF 1032 TRILLION YEN BUT DAIEI AND OTHER SUPERMARKET OPERATORS ARE FACING TOUGH TIMES IN THEIR PRINCIPAL BUSINESS RETAIL SALES DATA RELEASED EARLIER FRIDAY BY JAPAN'S TRADE AND INDUSTRY MINISTRY SHOWED SUPERMARKET SALES DECLINED BY 39 IN FEBRUARY FROM THE SAME MONTH A YEAR EARLIER MARKING THE SEVENTH CONSECUTIVE MONTH OF YEARONYEAR DECLINE 9303290061 930329 REVIEW & OUTLOOK EDITORIAL GREENSPAN BASHES CLINTON OK FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN REALLY DIDN'T TRASH PRESIDENT CLINTON'S ECONOMIC PLAN LAST WEEK AT LEAST NOT IN SO MANY WORDS BUT THEN OUR HEADLINE IS NO MORE INACCURATE THAN THE EARLIER REPORTS THAT HE'D ENDORSED THE CLINTON PLAN BECAUSE PRESS ACCOUNTS CAN BE UNRELIABLE WE THOUGHT WE'D REPORT WHAT MR GREENSPAN REALLY TOLD THE SENATE FINANCE COMMITTEE LAST WEEK WE FOUND IT ILLUMINATING AS WOULD ANYONE WITH ACCESS TO THE FULL TEXT FOR EXAMPLE ON TAXES CHAIRMAN GREENSPAN SAID BECAUSE ALL AND I UNDERLINE THE WORD ALL TAXES HAVE A REPRESSIVE EFFECT ON ECONOMIC ACTIVITY THAT MEANS THAT THEY ARE COSTLY TO THE ECONOMY TO IMPOSE AH BUT WHAT ABOUT TAXES THAT WOULD SOMEHOW REDUCE THE DEFICIT MR GREENSPAN WAS SUBTLE BUT CLEAR HE CALLED THE DEFICIT CORROSIVE AND ARGUABLY WORSE THAN NEW TAXES ALL ELSE EQUAL BUT HE THEN EXPLAINED WHY ALL ELSE ISN'T EQUAL YOU CANNOT REDUCE A LONGTERM BUDGET DEFICIT SUBSTANTIALLY OR WHOLLY FROM THE TAX SIDE IT'S AN ARITHMETICAL QUESTION HOW SO WELL SAID MR GREENSPAN ECONOMIC GROWTH IS EXPECTED TO CHECK THOUGH NOT REDUCE THE BUDGET DEFICIT FOR THE NEXT FEW YEARS BUT FROM 1997 ON BUDGET OUTLAYS UNDER EXISTING LAW ARE PROJECTED TO RISE APPRECIABLY FASTER THAN THE TAX BASE SO THE DANGER IS THAT EVERHIGHER TAX RATES WILL ALWAYS BE CHASING EVERHIGHER SPENDING THIS WOULD SURELY UNDERCUT INCENTIVES FOR RISK TAKING AND INEVITABLY DAMP THE LONGTERM GROWTH AND TAX REVENUE POTENTIAL OF OUR ECONOMY HE SAID GIVEN THAT THOUGHT IT'S NOT SURPRISING THAT MR GREENSPAN HAS SAID PREVIOUSLY THAT HE FAVORS A ZERO TAX RATE ON CAPITAL GAINS THEN CAME THE KICKER THUS THERE IS NO ALTERNATIVE TO ACHIEVING MUCH SLOWER GROWTH OF OUTLAYS IF DEFICIT CONTROL IS OUR OBJECTIVE MARK THE WORDS NO ALTERNATIVE MR GREENSPAN WOULDN'T COMMENT DIRECTLY ON THE CLINTON PLAN BUT EVERYONE KNOWS MR CLINTON HAS PROPOSED A LARGE NET INCREASE NOT A CUT IN FEDERAL SPENDING MR GREENSPAN WENT ON TO DESCRIBE THE SPENDING BIAS IN OUR POLITICAL SYSTEM WHICH REQUIRES NEUTRALIZATION HE IS ALARMED ENOUGH BY THAT BIAS TO FAVOR SUNSET LEGISLATION WHICH WOULD IMPOSE EXPLICIT TERMINATION DATES ON SPENDING PROGRAMS AND MORE RADICALLY HE SAID HE FAVORS A CONSTITUTIONAL AMENDMENT TO FORCE ALL TAX AND SPENDING INITIATIVES TO HAVE SUPERMAJORITIES OR 60 SUPPORT IN THE HOUSE AND SENATE OF COURSE NO SUCH CHALLENGE TO CONGRESS'S SPENDING BIAS IS CONTAINED IN THE CLINTON PROGRAM WHAT ABOUT MR CLINTON'S CONCERN FOR JOBS WELL WYOMING REPUBLICAN MALCOLM WALLOP ASKED WHY EMPLOYERS ARE RELUCTANT TO HIRE NEW FULLTIME WORKERS EVEN WHILE OVERTIME HOURS ARE NOW AT A RECORD MR GREENSPAN REPLIED THAT EMPLOYERS ARE BURDENED WITH HEALTHCARE WORKMEN'S COMP AND OTHER GOVERNMENT MANDATES AND WHAT HAPPENS WHEN YOU DO THAT IS CREATE A DISINCENTIVE FOR FULLTIME PERMANENT EMPLOYMENT I THINK THAT'S A MAJOR PROBLEM IN THIS COUNTRY HE SAID SOMEHOW VERY LITTLE OF THIS IMPORTANT TESTIMONY MADE IT INTO THE FINANCIAL REPORTING LAST WEEK PERHAPS BECAUSE THE REPORTERS KNOW IT CONTRADICTS THEIR EARLIER REPORTS WE'RE HAPPY TO CORRECT THE RECORD 9303290060 930329 BUSINESS BRIEF GENERAL DYNAMICS CORP COMPANY ORDERS INQUIRY INTO ROCKET MALFUNCTION GENERAL DYNAMICS CORP SAID IT ORDERED AN INVESTIGATION INTO LAST WEEK'S MALFUNCTION OF AN UNMANNED ATLAS ROCKET THE THIRD FAILURE IN EIGHT LAUNCHES FOR THE COMPANY THE FAILURE LEFT A NAVY COMMUNICATIONS SATELLITE MADE BY GENERAL MOTORS CORP'S HUGHES SPACE & COMMUNICATIONS GROUP IN A USELESS ORBIT IT WAS THE FIRST OF NINE NAVY SATELLITES THAT GENERAL DYNAMICS IS TO LAUNCH OVER THE NEXT THREE YEARS UNDER A 16 BILLION CONTRACT THE FAILED MISSION COST 138 MILLION THE NAVY SAID IN THE PAST WE HAVE VIEWED LAUNCH ANOMALIES AS OPPORTUNITIES FOR RELIABILITY GAINS MIKE WYNNE PRESIDENT OF GENERAL DYNAMICS COMMERCIAL LAUNCH SERVICES SAID HOWEVER TODAY'S VERY COMPETITIVE MARKETPLACE DEMANDS 100 SUCCESS EVERY TIME WE ARE COMMITTED TO RELIABILITY WE INTEND TO ACCOMPLISH THAT WITH THIS INVESTIGATION HE SAID THAT THE FIRSTSTAGE BOOSTER DIDN'T PROVIDE ENOUGH THRUST AND THAT THE SECOND STAGE TRIED TO CORRECT THAT PROBLEM BUT COULDN'T HUGHES ENGINEERS AND SATELLITE CONTROLLERS ARE EXAMINING WHETHER BOOSTERS ON BOARD THE SATELLITE COULD PLACE IT INTO A MORE USEFUL ORBIT 9303290058 930329 CORRECTIONS & AMPLIFICATIONS THE ASSOCIATION OF INTERNATIONAL AUTOMOBILE MANUFACTURERS IS REPRESENTED BY POWELL TATE A WASHINGTONBASED PUBLICRELATIONS FIRM IN A MARCH 17 POLITICS & POLICY ARTICLE ABOUT PROPOSED TARIFF INCREASES ON IMPORTED MINIVANS IT WAS INCORRECTLY STATED THAT THE TRADE GROUP WAS REPRESENTED IN ITS ANTITARIFF LOBBYING EFFORT BY THE WASHINGTON LAW FIRM OF PATTON BOGGS & BLOW SANFORD WEILL SURRENDERED TO PRIMERICA CORP SHARES HE OWNED IN THE COMPANY SO THEIR VALUE COULD BE USED FOR THE EXERCISE OF STOCK OPTIONS LAST YEAR MR WEILL HAS NEVER SOLD PRIMERICA SHARES THE COMPANY SAID A PRIMERICA SPOKESMAN INCORRECTLY SAID IN FRIDAY'S ARTICLE THAT HE HAD SOLD SHARES LAST YEAR WORLD AIRWAYS CONTINUES TO OPERATE AND WAS NOT INVOLVED IN A RECENT SETTLEMENT OF A PRICEFIXING LAWSUIT AGAINST SEVERAL AIRLINES IN AN ARTICLE TUESDAY THE CARRIER'S STATUS WAS MISSTATED 9303290057 930329 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE COMMERCIAL RAND EXCHANGE RATE EIN CANADIAN DOLLARS FAS OF WEDNESDAY'S CLOSE USING THE FREE MARKET SPOT RATE 9303290056 930329 MARKETING & MEDIA CHRISTIAN SCIENCE CHURCH TO HALT MONTHLY MAGAZINE BOSTON THE FIRST CHURCH OF CHRIST SCIENTIST FACED WITH TIGHT FINANCES SAID IT WILL CEASE PUBLICATION OF ITS MONTHLY NEWS MAGAZINE WORLD MONITOR THE DECISION FOLLOWS THE SHUTDOWN LAST YEAR OF THE CHURCH'S CABLE TELEVISION MONITOR CHANNEL AND THE DISCLOSURE THAT CHURCH OFFICIALS BORROWED MONEY FROM A PENSION FUND AND OTHER SOURCES TO PROP UP THE UNPROFITABLE VENTURE WORLD MONITOR A FOURYEAROLD PUBLICATION HAS A CIRCULATION OF 186000 THE CHURCH HAD EXPECTED THE MAGAZINE TO REACH A CIRCULATION OF 250000 THE MAGAZINE WAS EXPECTED TO BREAK EVEN LAST YEAR A SPOKESMAN SAID THAT GOAL WAS NOT ACHIEVED AND IT APPEARS DOUBTFUL IT WOULD BE REACHED FOR SEVERAL MORE YEARS WORLD MONITOR WILL CEASE PUBLICATION AFTER ITS MAY ISSUE ITS STAFF OF FEWER THAN 25 EMPLOYEES PROBABLY WILL BE TRANSFERRED WITHIN THE CHURCH OFFICIALS SAID THE CHRISTIAN SCIENCE CHURCH SAID ITS TWO REMAINING ENTERPRISES THE CHRISTIAN SCIENCE MONITOR AND MONITOR RADIO WON'T BE AFFECTED BY THE SHUTDOWN 9303290055 930329 COMMODITIES RUSSIA HOLDS FORMIDABLE SWAY IN MARKETS BY WALL STREET JOURNAL REPORTERS WARREN GETLER IN NEW YORK SCOTT KILMAN IN CHICAGO AND JAMES TANNER IN HOUSTON POLITICAL TENSIONS IN RUSSIA WHICH RECENTLY SENT TREMORS THROUGH COMMODITIES MARKETS APPEAR TO BE EBBING BUT THE PRECARIOUS POWER STRUGGLE IN MOSCOW HAS POINTED UP THE COUNTRY'S FORMIDABLE PRESENCE IN CRITICAL RAWMATERIAL MARKETS WORLDWIDE ACCORDING TO VARIOUS ESTIMATES RUSSIA IS THE BIGGEST PRODUCER OF NICKEL SECOND IN CRUDE OIL GOLD ALUMINUM PLATINUM AND SUGAR THIRD IN COTTON FOURTH IN COPPER IT ALSO IS A MAJOR PRODUCER OF WHEATS MEATS IRON AND STEEL IF ANYTHING TRADERS SAY THE POLITICALLY FRAUGHT ATMOSPHERE IN RUSSIA HAS ESTABLISHED A FLOOR UNDER SOME OTHERWISE WEAK COMMODITY PRICES SUCH AS THOSE FOR GOLD AND OIL WHAT THE LATEST POWER STRUGGLE BETWEEN RUSSIAN PRESIDENT BORIS YELTSIN AND RESTIVE ANTIREFORMIST ELEMENTS IN PARLIAMENT HAS DRIVEN HOME IS THAT COMMODITY MARKETS ARE FAR MORE SUSCEPTIBLE OVER TIME TO UNREST IN RUSSIA THAN ANY OF THE OTHER US FINANCIAL MARKETS WHICH HAVE LARGELY SHRUGGED OFF CONCERNS ABOUT EVENTS IN MOSCOW COMMODITY TRADERS AND ANALYSTS SAY THAT SHORT OF AN OUTBREAK OF CIVIL WAR RUSSIA WILL STILL WANT TO EXPORT AS MUCH OF ITS INVENTORY OF CRITICAL RAW MATERIALS AS IT CAN TO GENERATE HARD CURRENCY THUS WHILE POLITICAL UNCERTAINTY MIGHT CONTINUE TO PROVIDE A STRONGER TONE TO COMMODITY PRICES IT IS UNLIKELY TO SPAWN ANY KIND OF SUSTAINED RALLY IN THE CURRENT POLITICAL TURMOIL ANY NEW GOVERNMENT OF ANY POLITICAL STRIPE WOULD HAVE A STRONG INCENTIVE TO MAINTAIN COMMODITY EXPORTS SAID GOLDMAN SACHS IN ITS LATEST COMMODITYMARKETS REPORT ONLY A COMPLETE CESSATION OF ECONOMIC ACTIVITY WOULD PUT UNIFORM UPWARD PRESSURE ON COMMODITY PRICES IN ANY CASE ANALYSTS AND TRADERS SAY THE EFFECTS OF THE CONTINUING CRISIS WILL DIFFER SECTOR BY SECTOR OVER THE NEXT FEW WEEKS DEPENDING ON THE INTENSITY OF POLITICAL TENSIONS AND PARTICULAR SUPPLY AND DEMAND FACTORS BUFFETING MARKETS HERE'S A LOOK AT HOW THE MAJOR COMMODITY MARKETS ARE BEING AFFECTED BY THE RUSSIAN TURMOIL THE US COMMODITY MOST SENSITIVE TO THE RUSSIAN POWER STRUGGLE IS GRAIN SINCE MIDMARCH CORN AND WHEAT PRICES HAVE CLIMBED ROUGHLY 5 ON SPECULATION ABOUT THE AMOUNT OF FOOD AID AND CREDIT THE CLINTON ADMINISTRATION WILL EXTEND TO MOSCOW IF PRESIDENT YELTSIN SURVIVES HIS FIGHT WITH PARLIAMENT PRICES WOULD QUICKLY RETREAT TO THEIR DEPRESSED LEVELS IF MR YELTSIN LOSES AND COMMUNISTS FILL THE VACUUM GRAIN ANALYSTS SAID FRIDAY IF YELTSIN IS TOPPLED THE PICTURE CHANGES DRAMATICALLY SAYS BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC IN SUBURBAN CHICAGO THE US GRAIN INDUSTRY HAS THE MOST RIDING ON THE POLITICAL OUTCOME BECAUSE THE FORMER SOVIET UNION USED TO BUY ROUGHLY 5 OF US FARM EXPORTS THE WHITE HOUSE KEPT US CROPS FLOWING TO THE FORMER REPUBLICS BY ENCOURAGING BANKERS TO LEND ROUGHLY 5 BILLION TO MOSCOW WITH THE PROMISE OF MAKING GOOD ON THOSE GRAIN LOANS IF MOSCOW COULDN'T THE WHITE HOUSE WAS FORCED TO BEGIN DONATING HUGE QUANTITIES OF US GRAIN THIS MONTH AFTER MOSCOW'S BALLOONING LOAN DEFAULTS BROUGHT GRAIN SHIPMENTS TO A STANDSTILL SEVERAL BANKS HAVE FILED CLAIMS TOTALING 4555 MILLION WITH THE AGRICULTURE DEPARTMENT FOR THE SOUR RUSSIAN GRAIN LOANS PRESIDENT CLINTON HAS PROMISED TO UNVEIL AN AID PACKAGE THAT INCLUDES FOOD ASSISTANCE WHEN HE MEETS WITH MR YELTSIN IN VANCOUVER IN APRIL SPECULATION ABOUT THE SIZE OF THE FOOD AID PORTION VARIES WIDELY BUT SOME TRADERS EXPECT THE ADMINISTRATION TO OFFER ROUGHLY 100 MILLION TO 200 MILLION A MONTH IN DONATIONS OR NEW CREDIT ASSISTANCE UNTIL RUSSIA CAN WORK OUT ITS CREDIT CRISIS GRAIN TRADERS ARE SPECULATING THAT ANY AID PACKAGE ALSO WILL BE AIMED AT CREATING STABILITY IN THE REST OF THE FORMER SOVIET REPUBLICS MUCH OF ANY US GRAIN TARGETED FOR RUSSIA TRAVELS THROUGH THE BALTICS AND UKRAINE THE BIG MARCH RALLY IN GRAIN PRICES COMES AT A PARTICULARLY SENSITIVE TIME OF THE YEAR FOR MIDWEST FARMERS CORN AND SOYBEAN GROWERS ARE DECIDING HOW MANY ACRES TO PLANT AND THAT DECISION HINGES A LOT ON THEIR OUTLOOK FOR CROP PRICES BEFORE THE RUSSIA POWER STRUGGLE MOST GRAIN ANALYSTS WERE FORECASTING THAT US CORN ACREAGE WOULD SLIP THIS SPRING BY ABOUT 2 TO 6 IN THE WAKE OF A RECORD 1992 HARVEST THAT HAS DEPRESSED CORN PRICES IF MR YELTSIN IS REMOVED FROM POWER FARMERS WOULD PROBABLY BECOME EVEN MORE CONSERVATIVE ALTHOUGH RUSSIA'S OIL OUTPUT IS EXPECTED TO DROP AT LEAST ANOTHER ONE MILLION BARRELS A DAY THIS YEAR THE RECENT POLITICAL EVENTS THERE HAVE BEEN MORE BEARISH THAN BULLISH FOR OIL MARKETS LAST MONDAY AFTER RUSSIA'S LATEST POLITICAL CRISIS HAD BROKEN OUT OVER THE WEEKEND OIL PRICES PLUNGED PRICES RECOVERED LATER IN THE WEEK BUT MAY CRUDE FELL 46 CENTS A BARREL THAT ONE DAY ON THE NEW YORK MERCANTILE EXCHANGE WHILE ANALYSTS EXPECT THAT THE RUSSIAN SITUATION WILL BE BULLISH IN THE LONG RUN LAWRENCE GOLDSTEIN PRESIDENT OF THE PETROLEUM INDUSTRY RESEARCH FOUNDATION IN NEW YORK SAYS THERE ARE POWERFUL FACTORS WORKING AGAINST THE BULLS' CASE AT THE MOMENT THE NEGATIVE OILMARKET REACTION LAST WEEK WAS DUE IN PART TO THE FACT THAT THE RUSSIAN DEVELOPMENTS ARE COMING JUST AS WORLD DEMAND FOR OIL SUDDENLY IS BEGINNING TO SLACKEN BECAUSE OF SEASONAL FACTORS MORE IMPORTANT MR GOLDSTEIN AND OTHERS SAY THE ECONOMIC CHAOS STEMMING FROM THE POLITICAL PROBLEM IN RUSSIA IS CUTTING FURTHER INTO ITS OWN OIL DEMAND SO FAR THIS YEAR RUSSIA'S OIL EXPORTS HAVE BEEN SURPRISINGLY BUOYANT DESPITE OR PERHAPS BECAUSE OF ITS POLITICAL PROBLEMS PRODUCTION IN ALL OF THE FORMER SOVIET UNION IS PREDICTED BY THE INTERNATIONAL ENERGY AGENCY TO AVERAGE EIGHT MILLION BARRELS A DAY FOR ALL OF 1993 COMPARED WITH NINE MILLION BARRELS A DAY IN 1992 AND 122 MILLION BARRELS A DAY AS RECENTLY AS 1989 BUT WITH INTERNAL USE OF OIL FALLING NET OIL EXPORTS FROM RUSSIA HAVE CLIMBED IN THIS YEAR'S FIRST QUARTER FROM THE LEVEL OF A YEAR AGO MR GOLDSTEIN SAID EXPORTS IN THE CURRENT QUARTER WILL AVERAGE 18 MILLION BARRELS A DAY 400000 A DAY HIGHER THAN IN THE FIRST THREE MONTHS OF 1992 WHILE RUSSIA IS EXPECTED TO MAKE EVERY EFFORT TO MAINTAIN ITS OIL EXPORTS KEEPING THEM AT CURRENT LEVELS WON'T BE EASY CIVIL WAR WOULD BE BOUND TO DISRUPT RUSSIAN EXPORTS BUT EVEN WITHOUT ANARCHY THE CURRENT TURBULENCE IN RUSSIA IS ALMOST CERTAINLY GOING TO DELAY FOREIGN INVESTMENT AIMED AT HELPING RUSSIA DEVELOP ITS OIL FIELDS THE OIL MARKET IS PROBABLY RIGHT IN ASSUMING THAT SHORTTERM OIL EXPORTS WILL CONTINUE THE ENERGY COMPASS A LONDONBASED INDUSTRY PUBLICATION REPORTED FRIDAY BUT WITHOUT BADLY NEEDED OUTSIDE FINANCING THE PUBLICATION ADDED RUSSIA'S OIL PRODUCTION MAY FALL EVEN MORE SHARPLY THAN THE ONE MILLION BARRELADAY DROP ALREADY PREDICTED FOR 1993 TRADERS FAMILIAR WITH RUSSIAN METALS EXPORTS SAY THAT POLITICAL TURMOIL HAS DONE LITTLE TO STANCH THE FLOW OF METALS BOTH PRECIOUS AND BASE OUT OF RUSSIA LARGELY AS A RESULT OF RUSSIA'S ECONOMIC SLUMP ITS HYPERINFLATION AND ITS COLLAPSING CURRENCY RUSSIA HAS BEEN DUMPING METALS PARTICULARLY ALUMINUM ON WESTERN MARKETS FOR MORE THAN THREE YEARS RUSSIA ALUMINUM PRODUCTION SOARED TO ONE MILLION TONS LAST YEAR FROM AN ANNUAL AVERAGE OF ONLY 200000 TONS IN THE LATE 1980S ALTHOUGH PRODUCTION IS DOWN FOR MOST METALS DOMESTIC RUSSIAN CONSUMPTION IS DOWN EVEN MORE AS A RESULT OF THE SEVERE CUTBACK IN DEFENSE PRODUCTION AND DEPRESSED INDUSTRIAL DEMAND NOTES FRED DEMLER A SENIOR METALS ANALYST WITH PAINEWEBBER WITH THIS SURPLUS OF METAL AVAILABLE IN DOMESTIC STOCKPILES MR DEMLER ADDS THE RUSSIANS HAVE BEEN FLOODING INTERNATIONAL MARKETS AND HELPING TO DEPRESS PRICES THERE HAVE BEEN SO MANY COMPLAINTS ABOUT ALUMINUM PRICE DISCOUNTING THAT THE EUROPEAN COMMUNITY ANNOUNCED LAST WEEK THAT IT WOULD INVESTIGATE ALLEGATIONS OF DUMPING SOME ANALYSTS HAVE DETECTED A SLIGHT DROP IN SALES OF NICKEL CHROMIUM AND SOME OTHER METALS BUT ATTRIBUTE THE DECLINE TO DELAYS IN ACQUIRING EXPORT LICENSES AND DISRUPTIONS FROM TURBULENT WEATHER ADDS PHILLIP CROWSON CHIEF ECONOMIST OF THE BIG MINERAL CONGLOMERATE RTZ CORP EVEN WITH DISTURBANCES IN RUSSIA WE'LL STILL SEE LARGE METAL EXPORTS THEY WILL ONLY STOP IF THE DISTRIBUTION SYSTEM IS AFFECTED 9303290054 930329 MARKETING & MEDIA MURDOCH ENTERS AGREEMENT TO GET OWNERSHIP OF POST BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER A WEEKEND OF NEGOTIATIONS RUPERT MURDOCH THE ONCE AND MAYBE FUTURE PUBLISHER OF THE NEW YORK POST TOOK A MAJOR STEP TOWARD ACQUIRING THE AILING TABLOID NEWSPAPER MR MURDOCH CHAIRMAN OF MEDIA GIANT NEWS CORP SIGNED AN AGREEMENT WITH COURTDESIGNATED OWNER ABRAHAM HIRSCHFELD YESTERDAY MORNING TO TRANSFER MANAGEMENT OF THE POST TO A NEWS CORP SUBSIDIARY THIS MORNING THE PLAN WILL BE PRESENTED TO A FEDERAL BANKRUPTCY COURT JUDGE FOR APPROVAL IF THE PLAN IS APPROVED MR MURDOCH IS EXPECTED TO GO TO THE POST'S RIVERFRONT OFFICES IN LOWER MANHATTAN AND TO IMMEDIATELY BEGIN MANAGING THE POST WHICH HE OWNED FROM 1976 TO 1988 THE NEWSPAPER IS CURRENTLY LOSING ADVERTISING AND CIRCULATION HAS BEEN A HOTBED OF STAFF DISSENSION AND RECENTLY FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION THE PLAN ASKS THAT MR HIRSCHFELD'S MANAGEMENT AGREEMENT BE TERMINATED AND IN HIS PLACE A NEWS CORP SUBSIDIARY RUN THE PAPER FOR THE NEXT 60 DAYS NEWS CORP WILL PAY THE PAPER'S OPERATING EXPENSES DURING THAT TIME LEFT UNCLEAR IS WHETHER MR MURDOCH WILL KEEP THE POST'S EDITOR PETE HAMILL THE TWO MEN CLASHED DURING MR MURDOCH'S FIRST TENURE AT THE POST A SPOKESMAN SAID MR MURDOCH MET WITH MR HAMILL YESTERDAY AND WAS CREDITING HIM WITH HOLDING THE PAPER TOGETHER IN RECENT WEEKS BEFORE NEWS CORP CAN TAKE OWNERSHIP IT FACES SEVERAL HURDLES MR MURDOCH WILL HAVE TO REACH AGREEMENT WITH THE PAPER'S CREDITORS AND UNIONS A POST SPOKESMAN SAID MR MURDOCH WOULD ASSUME MR HIRSCHFELD'S POSITION AS A SECURED CREDITOR OF THE POST AND WOULD ADVANCE THE PAPER A CASH INFUSION OF 430000 ORIGINALLY PROMISED BY MR HIRSCHFELD TO KEEP THE PAPER OPERATING IT IS UNCLEAR WHETHER MR MURDOCH WILL NEGOTIATE STAFF AND WAGE CUTS WITH THE UNIONS BEFORE HE CAN OWN THE POST MR MURDOCH MUST ALSO WIN 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 IN A STATEMENT MR MURDOCH SAID ALTHOUGH WE ARE HOPEFUL THAT WE CAN SUCCESSFULLY CONCLUDE THESE ARRANGEMENTS THEY REMAIN AS VERY SERIOUS OBSTACLES IN THE MEANTIME WE WILL DEVOTE EVERY EFFORT POSSIBLE TO RESTORING THE POST AS A STRONG PROFESSIONAL AND COMPETITIVE NEWSPAPER 9303290053 930329 WORLD STOCK MARKETS REPEAT OF LAST APRIL'S FREE FALL IN TOKYO ISN'T LIKELY MARKET STRATEGISTS BELIEVE BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IS THE TOKYO STOCK MARKET ABOUT TO REPEAT LAST APRIL'S FREE FALL THE VERDICT OF MARKET STRATEGISTS SO FAR NOT LIKELY THE TRADING THAT BEGINS THIS WEEK HAS WORRIED INVESTORS FOR MONTHS THAT'S BECAUSE MOST JAPANESE COMPANIES NOW HAVE COMPLETED STOCK TRADING FOR THE JAPANESE FISCAL YEAR THAT ENDS MARCH 31 NOW THESE COMPANIES ARE MAKING THEIR MONEYMANAGEMENT DECISIONS FOR THE 12 MONTHS AFTER THE BOOKS CLOSED IN 1992 MANY COMPANIES SOLD OFF PORTIONS OF THEIR BIG STOCK PORTFOLIOS IN PART BECAUSE THEY WERE CONVINCED THAT THE TOKYO MARKET WOULD TAKE A HIT WHEN GRIM EARNINGS REPORTS WERE MADE PUBLIC IN THE SPRING THE NIKKEI AVERAGE SWOONED 3629 POINTS OR 18 IN TWO WEEKS WHAT'S TO KEEP THAT FROM HAPPENING AGAIN AFTER ALL JAPANESE CORPORATE PROFITS ARE EXPECTED TO BE DOWN THIS FISCAL YEAR FOR THE THIRD CONSECUTIVE YEAR THE OUTLOOK FOR THE JAPANESE ECONOMY REMAINS BLEAK AND AFTER A ROUGH 12 MONTHS MANY COMPANIES ARE EVEN MORE STARVED FOR CASH THAN THEY WERE LAST YEAR BUT THIS TIME JAPANESE FINANCIAL AUTHORITIES APPEAR HELLBENT ON PREVENTING A REPEAT STAMPEDE THEY HAVE BEGUN LEAKING DETAILS OF A HUGE FISCAL STIMULUS PACKAGE DUE FOR RELEASE IN MIDAPRIL TO KICKSTART THE JAPANESE ECONOMY THOUGH THE ACTUAL AMOUNT OF THE PACKAGE WON'T BE KNOWN FOR WEEKS SOME OBSERVERS ARE PREDICTING IT COULD TOTAL 12 TRILLION YEN 102 BILLION OR MORE INCLUDING A HEALTHY SUM FOR GOVERNMENT INVESTMENT IN THE STOCK MARKET THAT'S THE KEY DIFFERENCE SAYS ALEXANDER KINMONT MARKET STRATEGIST AT MORGAN STANLEY JAPAN LTD A YEAR AGO WHERE WAS THE GOVERNMENT WHILE THERE'S A CHANCE THAT EARLYAPRIL SELLING COULD SEND THE NIKKEI DOWN TO 17500 FROM FRIDAY'S CLOSE OF 1878870 HE SAYS THE FIRM HAND OF THE JAPANESE GOVERNMENT IS OUT THERE TRYING TO REMOVE RISK MR KINMONT THINKS THE MARKET MAY RISE TO ABOUT 20600 IN COMING MONTHS BEFORE IT LEVELS OFF PEOPLE AREN'T IN A HURRY TO SELL SAYS OSAMU YASAKA DEPUTY GENERAL MANAGER OF THE EQUITY DEPARTMENT AT NIKKO SECURITIES CO THEY EXPECT THE MARKET TO BE AT 21000 IN THE SECOND HALF OF THIS YEAR ON FRIDAY THE NIKKEI 225STOCK INDEX EDGED UP 2378 POINTS TO ITS CLOSE OF 1878870 THE INDEX HAD SURGED 31423 POINTS THURSDAY ON MONDAY THE NIKKEI ROSE 18269 POINTS TO CLOSE THE MORNING SESSION AT 1897139 FRIDAY'S FIRSTSECTION VOLUME SWELLED TO AN ESTIMATED 800 MILLION SHARES UP FROM 4702 MILLION SHARES THURSDAY GAINERS SWAMPED LOSERS 765294 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL ISSUES LISTED ON THE FIRST SECTION WHICH ROSE 1859 POINTS THURSDAY PICKED UP ANOTHER 1418 POINTS OR 1 TO 142820 FRIDAY OF COURSE THE STIMULUS PACKAGE MAY COME IN SHORT OF BULLISH PROJECTIONS AND MORE BAD ECONOMIC NEWS COULD SWAMP THE OPTIMISTS THE NIKKEI COULD PLUMMET IF INVESTORS BECOME CONVINCED THAT GOVERNMENT PROGRAMS JUST WON'T BE ENOUGH TO OFFSET THE SOUR BUSINESS CLIMATE HERE THE NIKKEI'S THREEYEAR SLUMP AFTER ALL HAS BEEN THE LONGEST BEAR MARKET IN POSTWAR JAPAN STILL THERE ARE OTHER DIFFERENCES FROM 1992 RECENTLY FOREIGN INVESTORS HAVE BEEN BIG BUYERS OF JAPANESE STOCKS FOREIGNERS BOUGHT A NET 402 BILLION YEN OF JAPANESE SHARES BETWEEN MARCH 1 AND MARCH 19 IRONICALLY MANY FOREIGN FUND MANAGERS STILL THINK JAPAN'S ECONOMIC FUNDAMENTALS LOW CORPORATE EARNINGS AND LAGGING CONSUMER DEMAND MEAN JAPANESE STOCKS AREN'T EVEN WORTH CURRENT PRICES BUT BECAUSE THE JAPANESE GOVERNMENT SEEMS READY TO THROW LOTS OF MONEY AT THE ECONOMY AND THE MARKET SOME HAVE CONCLUDED THAT TODAY'S PRICES ARE ABOUT AS CHEAP AS STOCKS MAY GET SINCE MARCH 4 THE TOKYO STOCK MARKET HAS REBOUNDED 121 THE STOCK MARKET IS 12 TO 18 MONTHS AHEAD OF THE PERFORMANCE OF THE REAL ECONOMY SAYS IAN BURDEN FUND MANAGER AT WARDLEY INVESTMENT SERVICES LTD IN TOKYO HE CALLS TALK ABOUT LARGESCALE GOVERNMENT FISCAL STIMULUS A TREMENDOUS BOOST FOR CONFIDENCE NOT ABOUT 1993 BUT ABOUT 1994 HE THINKS IN THE COMING MONTHS THE NIKKEI MAY REACH 21000 OR 22000 BEFORE PEOPLE DECIDE THAT'S ENOUGH FOR NOW THE STOCKS THAT HAVE LED THE CURRENT RALLY ARE ONES THAT ARE EXPECTED TO BENEFIT FROM THE GOVERNMENT SPENDING THE TOP GAINERS ARE TELECOMMUNICATIONS GIANT NIPPON TELEGRAPH & TELEPHONE CORP AND RELATED COMPANIES SUCH AS ANRITSU CORP A MAKER OF ELECTRONIC EQUIPMENT THE ANTICIPATED FISCAL PACKAGE IS ALSO EXPECTED TO INCLUDE HEAVY SPENDING ON SOCALLED SOCIAL CAPITAL SUCH AS COMPUTERS IN SCHOOLS THAT'S BOOSTING SHARES IN COMPUTER MAKER NEC CORP AND IN EDUCATIONAL SOFTWARE MANUFACTURERS IN MANY CASES THE FOREIGN BUYING REPRESENTS A CAUTIOUS SHIFT OF SENTIMENT ABOUT JAPAN MR KINMONT SAYS MORGAN STANLEY'S DECISION LAST WEEK TO RECOMMEND THAT INTERNATIONAL STOCK INVESTORS BOOST THE PROPORTION OF JAPANESE SHARES IN THEIR PORTFOLIOS TO 226 UP FROM 99 IS NOT AN EXPRESSION OF BOUNDLESS OPTIMISM IT'S JUST DIMINISHED PESSIMISM THAT 226 LEVEL REPRESENTS MORGAN STANLEY'S NEUTRAL WEIGHTING MEANING THE SECURITIES FIRM IS NEITHER BULLISH NOR BEARISH ON JAPANESE STOCKS JAPANESE FINANCIAL INSTITUTIONS HOWEVER AREN'T EXPECTED TO BE MAJOR STOCK BUYERS AND THAT COULD CAP ANY MARKET RALLY ONCE FOREIGNERS THINK THEY HAVE ENOUGH JAPANESE STOCK TO BALANCE THEIR GLOBAL PORTFOLIOS IN FACT JAPAN'S BANKS AND INSURANCE COMPANIES PRESSED BY THE GOVERNMENT NOT TO SELL SHARES WHEN THE MARKET WAS PLUNGING ARE NOW KEEN TO REDUCE THE PROPORTION OF THEIR TOTAL ASSETS DEVOTED TO STOCKS BUT THEY ARE ALSO WORRIED ABOUT SPARKING AN APRIL SELLOFF THE FINANCIAL INSTITUTIONS HAVE LEARNED THEIR LESSON IF THEY PLACE A LARGE SELL ORDER THEY'LL DRIVE THE MARKET DOWN SAYS MASANOBU TAKAHASHI DIRECTOR AT THE RESEARCH ARM OF SANYO SECURITIES CO THEREFORE HE SAYS FUND MANAGERS INSIDE THESE INSTITUTIONS HAVE ORDERS TO JUST SELL BUT NOT ALL AT ONCE JUST GRADUALLY LONDON SHARE PRICES ENDED LITTLE CHANGED FRIDAY AS INVESTORS FOUND SCANT REASON TO TRADE ON THE FINAL DAY OF THE TWOWEEK TRADING ACCOUNT FRANKFURT STOCKS ENDED FIRMER AFTER RETREATING FROM EARLY GAINS IN A SESSION OF UPS AND DOWNS LINKED TO EACH POLITICAL DEVELOPMENT IN RUSSIA IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED UP 01 POINT TO 28529 THE FT 30STOCK INDEX DROPPED 68 POINTS TO 22146 VOLUME WAS 7358 MILLION SHARES COMPARED WITH 9043 MILLION SHARES A DAY EARLIER PRICES DRIFTED AND VOLUME THINNED AS MANY INVESTORS WENT HOME EARLY AND STOCKS CLOSED NEAR THE DAY'S LOWS AS INITIAL GAINS EVAPORATED IN A WEAK STOCKINDEX FUTURES MARKET AND ON WALL STREET STOCKS' EARLY RISE STEMMED FROM A FRESH WAVE OF OPTIMISM ABOUT BRITISH ECONOMIC PROSPECTS AFTER AN EMPLOYERS GROUP SAID IT SAW MORE SIGNALS THAT THE RECESSION WOULD END BUT THIS FAILED TO PROMPT ANY SIGNIFICANT FOLLOWUP BUYING AND SHARES GAVE UP THEIR GAINS INVESTORS ALSO WERE UNSETTLED BY SPECULATION THAT THE US FEDERAL RESERVE MIGHT RAISE INTEREST RATES TO TRY TO COOL INFLATIONARY PRESSURES IN FRANKFURT THE DAX 30STOCK INDEX ROSE 414 POINTS TO 166129 WELL BELOW THE INTRADAY HIGH OF 167078 PRICES CLIMBED INITIALLY ON AN APPARENT FAILURE OF EFFORTS TO IMPEACH RUSSIAN PRESIDENT BORIS YELTSIN BUT FRANKFURT INVESTORS BECAME MORE UNSETTLED WHEN MR YELTSIN JUGGLED HIS CABINET NAMING A RADICAL ECONOMIC REFORMER TO BE FINANCE MINISTER BUT DUMPING TWO OTHER REFORMERS MEANWHILE AN ESTIMATED 42 ANNUAL INFLATION RATE FOR FEBRUARY MAY DELAY A GERMAN MONETARY EASING PRESSURING STOCKS FURTHER PARIS STOCKS RALLIED 12 BOOSTED BY A CUT IN DANISH INTEREST RATES THAT ENCOURAGED INVESTORS ABOUT EUROPEAN REDUCTIONS AN APPARENT EASING OF TENSIONS IN RUSSIA AND EXPECTATIONS THAT THE NEW FRENCH GOVERNMENT TO TAKE OFFICE NEXT WEEK WILL ACT TO GALVANIZE THE ECONOMY IN AMSTERDAM BUYERS RESURFACED AND PRICES ADVANCED PARTLY ON A STEADY DOLLAR MADRID EQUITIES JUMPED PROPELLED BY A DECLINE IN SPANISH INTERBANK SHORTTERM INTEREST RATES A MIDDAY RALLY FROM DECLINING SWEDISH INTEREST RATES PUSHED STOCKHOLM PRICES HIGHER ZURICH STOCKS ROSE SOLIDLY ON INSTITUTIONAL BUYING LARGELY IN THE INSURANCE AND DRUG SECTORS IN SYDNEY SHARES RALLIED TO THEIR HIGHEST LEVELS IN A WEEK SPURRED BY DEMAND FOR GOLD STOCKS AND THE EXPIRATION OF MARCH OPTIONS ON SOME MAJOR ISSUES MARKET SENTIMENT WAS HELPED BY CONFIRMATION LAST WEEK THAT THE AUSTRALIAN CORPORATE TAX RATE WILL BE CUT TO 33 FROM 39 AND BY OFFICIALS' COMMENTS THAT THE GOVERNMENT WANTS TO BOOST ECONOMIC GROWTH SIGNIFICANTLY IN HONG KONG FOLLOWING DECLINES FROM PROFITTAKING A REPORT THAT CHINA BACKED THE BRITISH COLONY'S HUGE NEW AIRPORT PROJECT SPURRED A RALLY AND STOCKS ENDED WITH SHARP GAINS TO CAP A FIRM WEEK PRICES WERE ALSO HELPED BY ANOTHER BULLISH REPORT ON SINOBRITISH TIES MARRED RECENTLY BY A DISPUTE ABOUT HONG KONG DEMOCRATIC REFORMS TAIPEI SHARE PRICES FELL AMID PROFITTAKING ON PLASTIC AND CONSTRUCTION ISSUES AND SELLING MOMENTUM WAS ACCELERATED BY POOR PERFORMANCES BY FIVE NEWLY LISTED MUTUAL FUNDS ON THEIR FIRST DAY ON THE MARKET MANILA STOCKS EASED AS FOREIGN INVESTORS HUNTED BARGAINS WHILE PHILIPPINE INVESTORS CONTINUED TO TAKE PROFITS IN SEOUL THE SOUTH KOREAN GOVERNMENT'S ANTICORRUPTION DRIVE AND DATA SHOWING SLOW ECONOMIC GROWTH LAST YEAR SENT PRICES LOWER FOR THE THIRD CONSECUTIVE DAY 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 9303290052 930329 TEXAS UTILITIES SETS REDEMPTION DALLAS TEXAS UTILITIES CO SAID ITS UNIT TEXAS UTILITIES ELECTRIC CO WILL REDEEM ALL SHARES OUTSTANDING IN THREE SERIES OF PREFERRED STOCK THE REDEMPTION PRICE FOR THE 1092 PREFERRED IS 10546 A SHARE ALL 300000 SHARES WILL BE REDEEMED APRIL 30 THE 1132 SERIES WILL BE REDEEMED ON MAY 3 AT 10378 A SHARE THE DIVIDENDS OF BOTH SERIES WILL BE PAID IN THE USUAL MANNER ON OR BEFORE MAY 1 TO STOCK OF RECORD APRIL 9 THE PRICE FOR ALL 350000 SHARES OF THE 1012 SERIES IS 10337 A SHARE THIS SERIES WILL BE REDEEMED ON APRIL 21 DIVIDENDS WILL BE PAID ON APRIL 1 TO STOCK OF RECORD MARCH 10 9303290051 930329 ECONOMY FOURTHQUARTER PROFITS SURGED 92 AS BUSINESS IS BIG WINNER IN GDP RISE BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BIG WINNER IN THE FOURTH QUARTER'S BURST OF ECONOMIC GROWTH WAS BUSINESS CORPORATIONS' AFTERTAX PROFITS SURGED 92 IN THE FINAL QUARTER OF 1992 THE COMMERCE DEPARTMENT SAID THAT FOLLOWED A 45 DECLINE IN THE THIRD QUARTER PRIMARILY AS A RESULT OF HURRICANES ANDREW AND INIKI THE IMPRESSIVE PROFIT INCREASE CAME AS THE ECONOMY KICKED INTO HIGHER GEAR IN ITS FINAL ESTIMATE THE DEPARTMENT SAID THE ECONOMY GREW AT AN ANNUAL RATE OF 47 IN THE FOURTH QUARTER THE BEST SHOWING SINCE THE FOURTH QUARTER OF 1987 THE FINAL GROWTH RATE OF THE GROSS DOMESTIC PRODUCT THE TOTAL OUTPUT OF GOODS AND SERVICES IN THE US WAS LITTLE CHANGED FROM THE 48 ESTIMATE ISSUED LAST MONTH THE ECONOMY GREW AT A 34 ANNUAL RATE IN THE THIRD QUARTER AND EXPANDED 21 FOR THE FULL YEAR CORPORATE PROFITS ARE USUALLY STRONG DURING A RECOVERY BUT ANALYSTS SAID THE FACT THAT THIS RECOVERY HAS BEEN SO SUBDUED MAKES THE LATEST PERFORMANCE PARTICULARLY STRIKING THE PAYOFF FROM THE EXPANSION HASN'T COME TO THE AVERAGE AMERICAN IT HAS BEEN HEAVILY TOWARD THE BUSINESS SECTOR SAID ROBERT DEDERICK CHIEF ECONOMIST OF NORTHERN TRUST CO IN CHICAGO THERE HAS BEEN LITTLE JOB GROWTH DURING THE RECOVERY AND VIRTUALLY NONE IN THE THIRD AND FOURTH QUARTERS WHEN THE ECONOMY PICKED UP NOTICEABLE MOMENTUM COMPANIES HAVE BEEN ABLE TO BOOST THEIR PROFITS BY HOLDING DOWN UNIT LABOR COSTS AND INCREASING PRODUCTIVITY ALTHOUGH US COMPANIES AREN'T HIRING MANY NEW WORKERS WITH THEIR PROFITS MR DEDERICK AND OTHER ANALYSTS SAID THEY ARE SPENDING THEM WISELY THEY ARE NOT TAKING THESE PROFITS AND PUTTING THEM IN THEIR SOCKS THEY ARE INVESTING IN CAPITAL EQUIPMENT TO MAKE IMPROVEMENTS MR DEDERICK SAID ALSO IN THE REPORT THE COMMERCE DEPARTMENT BOOSTED ITS ESTIMATES OF FOURTHQUARTER PRICE INCREASES THE DEPARTMENT'S BROADEST MEASURE OF PRICES ROSE AT A 34 ANNUAL RATE INSTEAD OF THE 29 RATE PREVIOUSLY REPORTED ANALYSTS SAID THE UPWARD REVISION WAS UNSETTLING BUT NOT A SIGN THAT INFLATION IS HEADED OUT OF CONTROL WHAT IT MEANS IS THAT PEOPLE SHOULD WATCH INFLATION A LITTLE MORE THAN THEY HAVE YOU SHOULD NEVER TAKE YOUR EYE OFF IT SAID MARILYN SCHAJA MONEYMARKET ECONOMIST FOR DONALDSON LUFKIN & JENRETTE IN NEW YORK THERE HAVE BEEN SEVERAL SIGNS THAT GROWTH IN THE QUARTER JUST ENDING HAS BEEN MUCH MORE MODEST THAN THE FOURTH QUARTER'S CONSUMER SPENDING HAS SLOWED AND EXPORTS AREN'T AS STRONG BECAUSE OF THE POOR ECONOMIC HEALTH OF MAJOR US TRADING PARTNERS DONALD E MAUDE CHIEF ECONOMIST FOR SCOTIAMCLEOD IN NEW YORK ESTIMATES THAT THE ECONOMY HAS GROWN AT AN ANNUAL RATE OF 25 TO 3 IN THE FIRST QUARTER ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS IN THE FOURTH QUARTER THE IMPLICIT PRICE DEFLATOR ROSE TO 1219 FROM 1212 IN THE PREVIOUS QUARTER 9303290050 930308 LEISURE & ARTS TELEVISION NO WHITEWASH FOR THIS WAR ATROCITY BY DOROTHY RABINOWITZ TONIGHT'S NBC MOVIE IS CALLED SILENT CRIES 911 PM WHICH MIGHT LEAD ONE TO SUPPOSE THAT THIS IS ANOTHER OF THE COUNTLESS MADEFORTV MOVIES ABOUT RAPE WIFE BATTERING AND/OR GENERAL MOLESTATION FROM THE UNIVERSEATLARGE APPEARING ON OUR TELEVISION SCREENS NIGHT AFTER NIGHT IT'S GOOD TO REPORT THAT THE TITLE IS IN THIS CASE SERIOUSLY MISLEADING NOT THAT THE MOVIE ISN'T ABOUT WOMEN AND SUFFERING AND ENDURANCE IT IS BUT MORE IMPORTANT IT IS A MADEFORTV FILM ABOUT WOMEN THAT IS ACTUALLY ABOUT SOMETHING LARGER THAN THE ENDLESS CATALOG OF GENDER COMPLAINTS THAT COMES OOZING FROM THE SCREEN WITH SUCH APPALLING REGULARITY WHAT'S MUCH LARGER IS TO BE PRECISE A WAR SILENT CRIES PRODUCED BY DIANE SOKOLOW WHO ALSO GAVE US THE RECENT EXCELLENT DOCUMENTARY ON MIKE TYSON AND THE LATE MEL SOKOLOW IS SET IN 1942 IN JAPANESEOCCUPIED SINGAPORE DERIVED FROM A WORK BY JANICE YOUNG BROOKS TITLED GUESTS OF THE EMPEROR IT CONCERNS A GROUP OF BRITISH AMERICAN AND AUSTRALIAN WOMEN MOST OF THEM WIVES AND CHILDREN OF COLONIAL OFFICIALS OR BUSINESSMEN CAPTURED BEFORE THEY CAN ESCAPE THE INVADING JAPANESE ARMIES THE FILM DRAWS ON THE ACTUAL HISTORY OF THE INTERNMENT CAMPS WHERE SUCH CIVILIANS LIVED AND DIED OF STARVATION AND DISEASE AS WELL AS MORE DIRECT METHODS OF KILLING TO THEIR CREDIT THE FILMMAKERS HAVE DONE THEIR BEST TO BE TRUE TO THAT HISTORY WITHIN BOUNDS THEY HAVE NOT FOR EXAMPLE FLINCHED FROM PORTRAYING THE BRUTALITY OF THE CONQUERING JAPANESE TROOPS THERE IS A SECTION EARLY ON THE JAPANESE ARRIVING AT THE VERY AIRPORT WHERE THE WOMEN ARE FRANTICALLY AWAITING A RESCUE PLANE THAT IS PROFOUNDLY TERRIFYING IN A WAY FEW HORROR FILMS CAN EQUAL THE RISING SUN PAINTED ON THE PLANE DOOR LOOMS LIKE THE END OF THE WORLD THE DOOR OPENS THE SOLDIERS COME CHARGING DOWN IT IS THE SCENE THAT SETS THE EMOTIONAL TONE INERADICABLY WITH ITS CLOSEUP PICTURES OF REAL TERROR OF FISTS SMASHING FACES GUN BUTTS IN THE STOMACH SCENES OF THIS KIND ARE ALWAYS THE MEASURE OF A PICTURE'S SERIOUSNESS AND ALSO OF COURSE OF THE SKILL OF ITS DIRECTOR IN THIS CASE ANTHONY PAGE THEIR FAITH IN THE RULES OF THE CIVILIZED WORLD STILL TOUCHINGLY INTACT SOME OF THE WOMEN RUN TO THE AIRPORT LADIES' ROOM AND INTO A CUBICLE UNABLE QUITE TO IMAGINE THAT THE SOLDIERS WOULD INVADE THEIR PRIVACY THERE THEY LEARN OTHERWISE AND SOON THE FILM'S WILLINGNESS TO PRESENT PLAIN AND INCONTROVERTIBLE FACTS ABOUT THE DEPREDATIONS COMMITTED BY THE JAPANESE TROOPS HAS ALREADY EARNED IT ONE PIOUS REBUKE FROM TV CRITIC JEFF JARVIS WHO CHARGED THE PRODUCTION WITH JAPANBASHING WE APPARENTLY HAVE NOW REACHED THE POINT WHERE EVEN TO PORTRAY INDISPUTABLE FACTS OF HISTORY IS ENOUGH TO PROVOKE THE CULTURE POLICE IT HAS OF COURSE BEEN AWHILE SINCE THE ENTERTAINMENT WORLD HAS PROVIDED A FILM ON THIS HISTORY WITH ANYTHING LIKE THE CANDOR SHOWN BY THIS ONE NOT THAT THIS MOVIE DOESN'T ITSELF MINCE AROUND A BIT AND SOMETIMES MORE THAN A BIT IN ITS EFFORT SAY TO EXPLAIN THE CRUELTY OF A PARTICULAR CAMP COMMANDANT SYPHILIS IT CLEARLY MAKES AN EFFORT TO SHOW THAT NOT EVERY CAMP GUARD WAS CRUEL WHICH IS ONLY REASONABLE BUT EVENHANDEDNESS IS NOT LAID ON WITH A TROWEL TO BE CAREFUL AND TO MAKE DISTINCTIONS IS AT ANY RATE A VERY DIFFERENT THING FROM LYING ABOUT ESSENTIAL MATTERS AS SO MANY POST'60S MOVIES ABOUT WORLD WAR II HAVE DONE AND DO IN ONE WAY AND ANOTHER SOME YEARS AGO ONE OF THE NETWORKS AIRED A MADEFORTV FILM PURPORTING TO BE ABOUT THE BATAAN DEATH MARCH AN ATROCITY WHOSE GRIP ON THE AMERICAN PSYCHE DURING THE EARLY WAR YEARS WAS SECOND ONLY TO THAT OF THE BOMBING OF PEARL HARBOR THE MOST INTERESTING THING ABOUT THIS MOVIE WERE THE AMERICAN WOMEN NURSES STAGGERING ALONG WITH THE TROOPS THAT NO WOMEN ACTUALLY TOOK PART IN THE BATAAN MARCH DID NOT APPARENTLY DAUNT THE FILMMAKERS WHO MERELY TRAILED A MESSAGE IN SMALL PRINT AT THE END OF THE MOVIE ACKNOWLEDGING THAT IN FACT NO WOMEN TOOK PART IN THE MARCH BUT THE FILMMAKERS EXPLAINED THEY HAD INCLUDED SOME AS A TRIBUTE TO ALL THE GALLANT AMERCAN SERVICEWOMEN THEY HAD IN SHORT LIED IN A GOOD CAUSE AS WE WERE SUPPOSED TO UNDERSTAND IT LYING IN A GOOD CAUSE IS ALSO OF COURSE ROUGHLY THE REASON FOR THE REWRITING OF HISTORY IN THE LIBERATORS THE PBS DOCUMENTARY THAT RECENTLY SHOWED BLACK TANK UNITS LIBERATING NAZI DEATH CAMPS THEY NEVER ENTERED THOUGH BLACK TROOPS WERE INDISPUTABLY PRESENT AT THE OPENING OF OTHER CAMPS CONFRONTED WITH AN EFFORT BY ONE FORMER MEMBER OF THE TANK UNIT TO CORRECT THE DISTORTION THE FILM'S COCREATOR NINA ROSENWALD DEFENDED HER MISREPRESENTATIONS BY ASSERTING THAT THE MAN WAS BRAINDAMAGED LYING IN A GOOD CAUSE APPARENTLY MEANS STONEWALLING TO THE END ITS EFFORT TO BE BE ACCURATE ISN'T THE ONLY VIRTUE OF SILENT CRIES THOUGH IT IS THE PRIME ONE IT IS ALSO A FILM ABOUT WOMEN SUFFERING AND ENDURING THAT IS MERCIFULLY FREE OF NONSENSE AND GENDER POLITICS IT'S NICE TO SEE IT'S STILL POSSIBLE TO MAKE A MOVIE ABOUT WOMEN HEROINES THAT WON'T MAKE SANE PEOPLE CRINGE THE FILM HAS IN ADDITION A LITERATE SCRIPT BY VICKI PATIK AND WALTER HALSEY DAVIS FIRSTRATE PERFORMANCES NOTABLY FROM GENA ROWLANDS AS AN INTERNED WRITER PHYLLIS LOGAN AS ANOTHER INTERNEE AND CLYDE KUSATSU AS THE JAPANESE COMMANDANT ON A RELATED FRONT THERE ARE SLIGHT BUT TELLING SIGNS THAT EVEN THE TV INDUSTRY'S CAPACITY TO KEEP DELIVERING MOVIES ABOUT WOMEN VICTIMS MAY BE RUNNING DOWN SLOWLY TO BE SURE IT MUST RECENTLY HAVE OCCURRED TO THE MASTER WITS WHO CREATE TV FILMS THAT THEY CANNOT FOREVER KEEP CHURNING OUT SCRIPTS ABOUT WOMEN VICTIMS OF RAPE INCEST STALKERS WIFE BATTERERS ETC ETC PERHAPS THAT'S WHY WE CAN SEE ON SUNDAY A FILM TITLED MEN DON'T TELL 911 PM ON CBS WHICH IS ABOUT YES A MAN BATTERED BY HIS WIFE PETER STRAUSS STARS IN THE ROLE OF ED THE VIC WHILE JUDITH LIGHT PORTRAYS LAURA THE IRREMEDIABLY THREATENING HUSBAND BEATER WHAT BROUGHT SUCH A FILM INTO BEING WE CAN NEVER KNOW BUT DON'T RULE OUT THE CULTURAL INFLUENCE OF A COPRESIDENCY CORRECTIONS MONDAY'S TELEVISION COLUMN INCORRECTLY ATTRIBUTED THE VIEW THAT SILENT CRIES WAS A FORM OF JAPANBASHING TO JEFF JARVIS OF TV GUIDE THE CRITIC IN QUESTION WAS IN FACT HIS COLLEAGUE PAUL DROESCH IN THE SAME COLUMN THE COCREATOR OF THE LIBERATORS SHOULD HAVE BEEN IDENTIFIED AS NINA ROSENBLUM SEE RELATED LETTER LETTERS TO THE EDITOR THE WAR REVISIONISTS LIE FOR A GOOD CAUSE' WSJ MARCH 26 1993 9303080114 9303290049 930329 WHO'S NEWS ANADARKO PETROLEUM CORP ANADARKO PETROLEUM CORP HOUSTON CHARLES G MANLEY AND MICHAEL E ROSE WERE NAMED SENIOR VICE PRESIDENTS ADMINISTRATION AND FINANCE RESPECTIVELY MR MANLEY 48 YEARS OLD IS RESPONSIBLE FOR EMPLOYEE RELATIONS AND OTHER ADMINISTRATIVE AREAS MR ROSE 46 WILL CONTINUE AS CHIEF FINANCIAL OFFICER MESSRS MANLEY AND ROSE WERE PREVIOUSLY VICE PRESIDENTS AT THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY 9303290048 930329 REVIEW & OUTLOOK EDITORIAL ASIDES CAMPAIGN FINANCE FLOP LOS ANGELES TRIED TO IMPLEMENT THE SORT OF PUBLICFINANCING OF CAMPAIGNS THAT REFORMERS IN WASHINGTON ARE ALWAYS AFTER BUT MAYORAL CANDIDATE RICHARD RIORDAN CHOSE TO EXCEED ALL SPENDING LIMITS WHILE REFUSING THE TAX DOLLARS THUS REMOVING THE CAPS ON HIS OPPONENTS IN THE APRIL 20 RACE AS WELL THEY NOW GET TO KEEP 13 MILLION FROM THE TAXPAYERS PLUS ALL THEY CAN RAISE FROM INTEREST GROUPS ON THE SIDE THIS IS PROGRESS 9303290047 930329 BUSINESS BRIEF FIRSTFED FINANCIAL CORP COMPANY SAYS LOAN LOSSES WILL FAR EXCEED ESTIMATES FIRSTFED FINANCIAL CORP THE HOLDING COMPANY OF FIRST FEDERAL BANK OF CALIFORNIA SAID THE BANK'S ACTUAL LOAN LOSSES FOR THE FIRST QUARTER WILL BE MORE THAN TWICE THE LEVEL THAT HAD BEEN EXPECTED THE SANTA MONICA CALIF COMPANY SAID IT HAS SET ASIDE 12 MILLION FOR ACTUAL LOSSES INCURRED IN THE FIRST QUARTER COMPARED WITH THE PREVIOUSLY ESTIMATED 5 MILLION FIRSTFED SAID IT EXPECTS THAT THIS LOANLOSS RATE WILL CONTINUE THROUGH AT LEAST THE SECOND QUARTER THE COMPANY ATTRIBUTED THE NEED FOR ADDITIONAL LOANLOSS RESERVES TO THE RECESSION AND POOR REAL ESTATE MARKET IN SOUTHERN CALIFORNIA THE COMPANY SAID THE LOSSES WILL HAVE A NEGATIVE IMPACT ON THE 1993 EARNINGS GOAL BUT IT DIDN'T GIVE ANY EARNINGS FORECAST IT SAID HOWEVER THAT THE BANK WILL CONTINUE TO EXCEED ALL REGULATORY CAPITAL REQUIREMENTS 9303290046 930329 BUSINESS BRIEF KAISER ALUMINUM CORP UNIT OF MAXXAM WILL OMIT DIVIDEND FOR FIRST QUARTER MAXXAM INC'S KAISER ALUMINUM CORP UNIT SAID IN HOUSTON THAT IT WON'T PAY A FIRSTQUARTER DIVIDEND ON ITS COMMON STOCK AND PROBABLY WON'T RESUME PAYMENTS UNTIL ALUMINUM PRICES IMPROVE ANALYSTS SAID THEY EXPECTED THE MOVE SEVERAL OF KAISER'S COMPETITORS HAVE ALREADY SUSPENDED DIVIDENDS BECAUSE OF WEAK ALUMINUM PRICES KAISER HAD BEEN PAYING A REGULAR QUARTERLY OF FIVE CENTS A SHARE A STEPHENS HUTCHCRAFT JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE ALUMINUM PRODUCER SAID THE COMPANY IS OMITTING THE PAYMENT SO IT CAN BETTER BALANCE THE SOURCES AND USES OF CASH DURING THE DIFFICULT MARKET CONDITIONS 9303290045 930329 TECHNOLOGY OSHA FINE AGAINST PEPPERIDGE FARM OF 14 MILLION IS LARGELY REVERSED BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN ADMINISTRATIVE LAW JUDGE REVERSED MOST OF THE GOVERNMENT'S NEARLY 14 MILLION FINE AGAINST PEPPERIDGE FARM FOR CAUSING WORKERS' REPETITIVE STRESS A DECISION LIKELY TO PROMPT FASTER FEDERAL STANDARDS FOR THE INCREASINGLY WIDESPREAD INJURY BOTH SIDES CLAIMED VICTORY IN THE RULING BY DAVID ORINGER THE ADMINISTRATIVE JUDGE FOR THE OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION THE INDEPENDENT AGENCY THAT HANDLES APPEALS OF ACTIONS BY THE LABOR DEPARTMENT'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION OSHA WAS FORCED TO BRING THE CASE AGAINST THE CAMPBELL SOUP CO UNIT UNDER A GENERALDUTY CLAUSE BECAUSE THE AGENCY NEVER HAS SET A STANDARD FOR REPETITIVESTRESS INJURY ALSO KNOWN AS CARPAL TUNNEL SYNDROME UNDER STANDARDS SET BY THE CLAUSE THE AGENCY NOT ONLY HAD TO PROVE THAT THE INJURIES WERE OCCURRING AND THAT THE COMPANY KNEW ABOUT THEM BUT ALSO HOW THE COMPANY MUST RESOLVE THE PROBLEM IN THE CASE THE JUDGE AGREED THAT PEPPERIDGE FARM KNEW ITS BAKERY PRODUCTION LINE WAS CAUSING REPETITIVESTRESS PROBLEMS FOR MANY OF ITS 175 WORKERS AT A NOWCLOSED SUBURBAN PHILADELPHIA PLANT WHEN THEY PUT TOPS ON MILANO COOKIES AND PACKED THEM IN CUPS THE JUDGE ALSO SAID OSHA PROVED THAT THE COMPANY EXPERTS HAD INFORMED EXECUTIVES ABOUT THE PROBLEM BUT THE JUDGE RULED THAT OSHA DIDN'T PROVE THAT ITS PROPOSED SOLUTION OF SLOWING DOWN THE PRODUCTION LINE WOULD SOLVE THE INJURY PROBLEM AS A RESULT HE THREW OUT NEARLY 1 MILLION IN FINES THE JUDGE UPHELD HOWEVER OSHA'S 395000 IN FINES FOR POOR RECORDKEEPING RELATED TO THE INJURIES AND FOR UNSAFE REQUIREMENTS ABOUT LIFTING OF BAGS OF BUTTER SUGAR AND OTHER INGREDIENTS DESPITE THE REJECTION ON REPETITIVE STRESS OSHA OFFICIALS CHEERED THE JUDGE'S ORDER CONTENDING THAT THEY HAVE MOVED CLOSER TO BEING ABLE TO BRING SUCCESSFUL REPETITIVESTRESS CASES BECAUSE THE JUDGE ACCEPTED THE BASIC PREMISE THAT THE INJURY WAS RELATED TO THE WORK THE AGENCY HAS SETTLED WITH OTHER COMPANIES OVER SIMILAR INJURIES BUT HAS NEVER SUCCESSFULLY DEFENDED A REPETITIVESTRESS CASE IN COURT FOR THE FIRST TIME WE'VE GOT A LEGAL DECISION THAT SAYS THERE'S A RELATIONSHIP BETWEEN DUTIES IN THE WORKPLACE AND CARPAL TUNNEL SAID KATE DUGAN A SPOKESWOMAN FOR THE AGENCY I'M SURE THERE WILL BE MORE CASES HOPEFULLY IN THE FUTURE WE'LL BE BETTER ABLE TO RECOMMEND HOW TO REDESIGN THE FACTORY PROCESS OSHA STAFFERS ARE WORKING ON POSSIBLE STANDARDS FOR REPETITIVESTRESS INJURIES BUT IT ISN'T CLEAR HOW CLOSE THEY ARE TO ISSUING GUIDELINES THE BUREAU OF LABOR STATISTICS ANOTHER LABOR DEPARTMENT DIVISION SAID THAT IN 1991 SUCH INJURIES ACCOUNTED FOR 60 OF ALL NEW REPORTED INJURIES IN THE WORKPLACE PEPPERIDGE FARM PRAISED THE JUDGE'S DECISION AND DUBBED THE OUTCOME A LANDMARK CASE FOR REPETITIVEMOTION INJURIES PEPPERIDGE FARM HAS BEEN AN INDUSTRY LEADER IN PROTECTING ITS WORKERS FROM REPETITIVEMOTION INJURIES AND WE WILL CONTINUE TO BE SO PEPPERIDGE FARM PRESIDENT RICHARD A SHEA SAID IN A NEWSRELEASE MR SHEA SAID THE COMPANY HAS APPLIED MANY ERGONOMIC IMPROVEMENTS TO THE WORKPLACE REFERRING TO THE COMPANY'S RECORDKEEPING MR SHEA SAID FROM THE OUTSET WE NEVER DENIED THAT OUR RECORDS HAD ROOM FOR IMPROVEMENT BUT THERE WAS NO BASIS FOR OSHA'S ATTEMPT TO TRANSFORM THESE ADMITTED TECHNICAL RECORDKEEPING VIOLATIONS INTO A MAJOR CASE ON REPETITIVE MOTION 9303290044 930329 WHO'S NEWS IFR SYSTEMS INC IFR SYSTEMS INC WICHITA KAN PAUL ZIRKEL WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF OPERATING OFFICER OF THIS ELECTRONICS CONCERN MR ZIRKEL 54 YEARS OLD WAS PREVIOUSLY DIRECTOR OF MANUFACTURING AT THE COMPANY 9303290043 930329 REVIEW & OUTLOOK EDITORIAL THE WIZARDS OF OZ THE STRANGE AND MYSTERIOUS STORY OF THE PRESIDENT'S TASK FORCE ON NATIONAL HEALTH CARE REFORM IS BEGINNING TO SOUND A LOT LIKE THAT WONDROUS TALE OF DOROTHY HER LITTLE DOG TOTO AND THEIR THREE KIND FRIENDS WHO SOUGHT DELIVERANCE FROM THE GREAT OZ AT LONG LAST THE AMERICAN PEOPLE FOUND THEIR WAY TO WASHINGTON WHERE THEY HOPED TO MEET WITH THE PRESIDENT'S HEALTH TASK FORCE THE TASK FORCE SAID TO BE THE 500 SMARTEST PEOPLE IN THE LAND LIVED IN THE OLD EXECUTIVE OFFICE BUILDING WHICH WAS BIG AND SCARY AND HAD A HIGH GATE AROUND IT NO ONE HAD EVER SEEN THE TASK FORCE BUT THE PEOPLE KNEW THAT THEIR POWER WAS GREAT ONE DAY A GREAT VOICE RANG OUT ANNOUNCING THAT THERE WOULD BE A PUBLIC MEETING' OF THE GREAT AND POWERFUL TASK FORCE TO WHICH ALL THE PEOPLE OF THE LAND WERE INVITED TO SPEAK FOR THREE MINUTES EACH BUT AS THE VOICE SPOKE TOTO RAN UP TO THE LARGE CURTAIN THAT SEPARATED THE TASK FORCE FROM THE PEOPLE AND PULLED IT DOWN ALL THE PEOPLE BEGAN TO LAUGH FOR WHAT WAS REVEALED TO THEM WAS NOT THE 500 SMARTEST PEOPLE IN THE LAND AT ALL THEY WERE THE SAME OLD BUREAUCRATS NO ONE KNOWS HOW THIS STORY ENDS THAT'S BECAUSE THE UNITED STATES IS NOT THE LAND OF OZ YET OF COURSE THERE ALWAYS WAS SOMETHING A BIT MYTHICAL ABOUT THE NOTION THAT THE FIRST LADY AND 500 VOLUNTEERS WERE GOING TO BRAINSTORM FOR 100 DAYS AND REDESIGN THE AMERICAN HEALTH CARE SYSTEM WHICH IS TO SAY 14 OF THE GROSS DOMESTIC PRODUCT WE'RE GLAD TO HAVE PLAYED SOME PART IN BRINGING SOME OF THOSE SWEPT UP IN THIS TORNADO BACK TO FIRM EARTH WE SEEM TO HAVE PERSUADED THE WHITE HOUSE TO RELEASE THE NAMES THROUGH THE TIMETESTED WEAPON OF RIDICULE LIKENING THE PROCEEDINGS TO AN EXERCISE IN SOVIETSTYLE KREMLINOLOGY OTHERS HAVE TRIED THE ALLAMERICAN TACTIC OF LITIGATION SUING THE TASK FORCE FOR VIOLATING THE LAW THAT GOVERNS FEDERAL ADVISORY MEETINGS THIS IS NOT SUCH A LAUGHING MATTER ESPECIALLY GIVEN THE PEREMPTORY ATTITUDE TOWARD THE LAW WE'VE ALREADY SEEN IN THE CLINTON ADMINISTRATION CLINTON CRONY WEBSTER HUBBELL BROKERED THE INTERVENTION INTO THE TRIAL OF REP HAROLD FORD THEN FRESHLY CONFIRMED ATTORNEY GENERAL JANET RENO'S FIRST MAJOR ACT WAS TO FIRE THE NATION'S CORPS OF FEDERAL ATTORNEYS NOW IT ALSO SEEMS THAT THIS MORNING'S PUBLICCONSULTATION CHARADE IS GOING FORWARD IN CONTRADICTION TO THE INJUNCTION DULY ISSUED BY JUDGE ROYCE LAMBERTH ON MARCH 10 IN THE ABSENCE OF AN EXPLANATION THAT WE AT LEAST HAVE BEEN UNABLE TO EXTRACT FROM THE ADMINISTRATION IT APPEARS THAT THE MEETING IS IN CONTEMPT OF COURT JUDGE LAMBERTH RULED ON A SUIT BY SEVERAL HEALTH GROUPS CHARGING THAT THE COMMISSION'S SECRET MEETINGS VIOLATE THE FEDERAL ADVISORY COMMITTEE ACT JUDGE LAMBERTH'S OPINION WAS CAREFULLY SOLICITOUS OF THE CLINTON ADMINISTRATION'S CONSTITUTIONAL PREROGATIVES AND ITS DETERMINATION TO GET A DIFFICULT JOB DONE HE SAID MEETINGS TO SHAPE ADVICE FOR THE PRESIDENT WEREN'T COVERED BY THE LAW BUT ENJOINED FORMAL FACTGATHERING MEETINGS UNTIL SUCH A TIME AS THE TASK FORCE IS IN FULL COMPLIANCE WITH THE REQUIREMENTS OF FACA FULL COMPLIANCE WOULD REQUIRE THE TASK FORCE TO FILE A CHARTER WHICH IT DID LATE LAST WEEK IT WOULD ALSO HOWEVER REQUIRE 15 DAYS ADVANCE NOTICE OF PUBLIC MEETINGS AND TODAY'S MEETING FAILS THIS TEST IT WOULD HAVE BEEN POSSIBLE FOR THE ADMINISTRATION TO SEEK A STAY OF THE INJUNCTION WHICH IS WHAT HARRY TRUMAN DID WHEN A COURT ENJOINED HIS SEIZURE OF THE STEEL MILLS BUT A JUSTICE DEPARTMENT SPOKESMAN TOLD US THE ADMINISTRATION HAD NOT DONE THIS AND HAD NO PLANS TO INSTEAD IT IS SIMPLY GOING AHEAD WITH THIS MEETING THE VIOLATION MAY SEEM ONLY TECHNICAL ESPECIALLY IF YOU CLOSE YOUR EYES TO OTHER CLINTON JUSTICE CONTROVERSIES BUT IT RAISES THE INTERESTING QUESTION OF WHICH INJUNCTIONS THE ADMINISTRATION WILL FOLLOW AND WHICH IT WILL IGNORE SO WE HAVE BEEN TRYING TO FIND OUT WHO SIGNED AN OPINION OR FINDING ARGUING THAT THE MEETING COMPLIED WITH THE LAW OR WHO MADE THE DECISION TO GO AHEAD DESPITE THE INJUNCTION WHEN WE ASKED HEALTH TASKFORCE SPOKESPERSON ROBERT BOORSTIN ABOUT THE LEGAL STATUS OF THE MEETING HE ANSWERED ASK JUSTICE AND HUNG UP THE PHONE WHEN WE ASKED JUSTICE SPOKESPERSON CAROLINE ARONOVITZ IF WE COULD TALK TO THE LAWYERS HANDLING THE MATTER SHE SAID NO THOUGH SHE SEEMED TO BELIEVE THE 15DAY NOTICE WAS REALLY ONLY 8 DAYS WHEN WE SOUGHT GUIDANCE ON THE QUESTION OF WHO SIGNED OFF ON THIS OPINION SHE SUGGESTED WE CALL THE WHITE HOUSE WHITE HOUSE COUNSEL BERNARD NUSSBAUM DID NOT RETURN PHONE CALLS NOW PERHAPS THE WHITE HOUSE CAN GET AWAY WITH THIS THE PLAINTIFFS MAY NEVER GO TO COURT ASKING THAT THE TASK FORCE BE HELD IN CONTEMPT THOUGH THEY MAY GET THEIR BACK UP IF TODAY'S MEETING FILLS ITS BILLING AS BELTWAY OZ A PUBLIC MEETING THAT IS VIRTUALLY A KANGAROO COURT OF THREEMINUTE YELPS FAILING THAT WE NOTE THAT ASIDE FROM ATTORNEY GENERAL RENO NO ONE AT JUSTICE HAS GONE THROUGH CONFIRMATION PROCEEDINGS THIS WOULD CERTAINLY BE A VENUE TO ASK IS THIS TO BE AN ADMINISTRATION THAT ABIDES BY THE RULES OR MAKES THEM UP AS IT GOES ALONG TO SUIT THE PURPOSES OF THE MOMENT 9303290042 930329 DAIMLER MAY BE SIGN OF CHANGE FOR EQUITIES US LISTING MAY HERALD GREATER TRANSPARENCY OF GERMAN COMPANIES BY GLENN WHITNEY AND TERENCE ROTH STAFF REPORTERS OF THE WALL STREET JOURNAL MOST INVESTORS HAVE BEEN DEEPLY PESSIMISTIC ABOUT GERMAN EQUITIES FOR SO LONG THEY CAN HARDLY BE BLAMED FOR FAILING TO NOTICE SIGNS OF A REVOLUTION IN THEIR MIDST YET SOME ANALYSTS BELIEVE DAIMLERBENZ AG'S ANNOUNCEMENT LAST WEEK THAT IT WILL LIST ITS SHARES ON THE NEW YORK STOCK EXCHANGE SIGNALS THE BEGINNING OF A NEW ERA OF GERMAN COMPANY TRANSPARENCY THAT WILL SPREAD ACROSS CONTINENTAL EUROPE POTENTIALLY SPARKING A MAJOR UPWARD REVISION OF SHARE VALUES DETAILS OF DAIMLER'S NEW YORK LISTING WON'T BE KNOWN UNTIL LATER THIS WEEK NEVERTHELESS IT IS WIDELY THOUGHT THAT THE COMPANY WILL BEGIN PUBLISHING QUARTERLY RESULTS AND REVEALING DIVISIONAL EARNINGS AS WELL AS DIVULGING HIDDEN ASSETS THAT IN TURN IS LIKELY TO PREVENT DAIMLER FROM HIDING PROFITS THROUGH UNIDENTIFIED PROVISIONS AND COMPEL IT TO PAY OUT HIGHER DIVIDENDS TO BE SURE IT WOULD BE PREMATURE TO TAKE TO THE STREETS AND CELEBRATE IMPENDING BULL MARKETS YET THE STIRRINGS AT THE NORMALLY SEDATE STUTTGARTBASED MANUFACTURER OF LUXURY AUTOMOBILES CLEARLY HAVE LONGTERM REPERCUSSIONS JOE ROONEY EUROPEAN STRATEGIST AT LEHMAN BROTHERS IN LONDON CALLS THE DEVELOPMENTS POTENTIALLY A SEA CHANGE THAT COULD FUNDAMENTALLY ALTER THE RELATIONSHIP BETWEEN GERMAN COMPANIES AND THEIR OWNERS AND LEAD TO IMPROVED DIVIDEND FLOWS IT IS A BREAKTHROUGH AGREES THOMAS NEISSE CHIEF EQUITY ANALYST AT DEUTSCHE BANK RESEARCH LIKE OTHERS THOUGH MR NEISSE IS RESERVING FURTHER JUDGMENT UNTIL MORE IS KNOWN ABOUT THE LISTING AGREEMENT WHICH IS BELIEVED TO INVOLVE A COMPROMISE BETWEEN THE US SECURITIES AND EXCHANGE COMMISSION'S DEMANDS FOR EXTENSIVE DISCLOSURE AND THE GERMAN MARKET'S CONVENTION OF REVEALING ONLY LIMITED INFORMATION AS GERMAN COMPANIES USUALLY DON'T SPLIT OUT OPERATING EARNINGS FROM THEIR TOTAL EARNINGS US OFFICIALS HAVE LONG COMPLAINED THAT SMALL INVESTORS ARE NEVER SURE HOW MUCH MONEY WAS MADE FROM OPERATIONS IN A GIVEN YEAR AND HOW MUCH WAS SIPHONED OFF THE HIDDEN CASH POOL MANY OTHER MAJOR EUROPEAN COMPANIES ARE ALREADY LISTED ON THE BIG BOARD UP TO NOW THOUGH NONE OF THE HIGHPROFILE GERMAN GROUPS HAS BEEN PRESENT MANY OF THOSE COMPANIES ARE HIGHLY RESPECTED BY US INVESTORS BUT THE LACK OF LISTING PREVENTS SOME FUNDS FROM PURCHASING THEIR SHARES OR OTHERWISE MAKES PURCHASING STOCK OVERLY COMPLICATED IN EFFECT DAIMLER HAS BROKEN RANK WITH ITS COMPATRIOTS WHO HAVE BEEN WORKING TOGETHER WITH THE GERMAN GOVERNMENT FOR SEVERAL YEARS TO NEGOTIATE A COMPROMISE WITH THE SEC A LISTING IN ON THE BIG BOARD DOES CHANGE THINGS FOR A COMPANY IF ONLY IN TERMS OF PERCEPTION IT'S A SORT OF CUDDLING UP EFFECT THAT MAKES BIG BOARD STOCKS MORE INVESTABLE SAYS NICK STEVENSON CHIEF EUROPEAN EQUITY STRATEGIST AT SG WARBURG SECURITIES IN LONDON RODERICK HINKEL AN ANALYST AT HOARE GOVETT LTD THINKS THAT SLOWLY THE GREATER DEMANDS FOR DETAILED REPORTING WILL FORCE GERMAN COMPANIES TO REFLECT THE TRUE VALUE OF THEIR HOLDINGS PARTICULARLY REAL ESTATE THE SITUATION AT DAIMLERBENZ IS QUITE DRAMATIC PUBLISHING ITS OWN HIDDEN RESERVES FOR THE FIRST TIME AFTER THE ANNOUNCEMENT OF LAST WEEK'S COMPROMISE THE COMPANY SAID THE FIGURE WOULD RESULT IN 4 BILLION MARKS 244 BILLION IN EXTRAORDINARY INCOME LAST YEAR BUT DESPITE ALL THE ENTHUSIASM FROM MARKET PROFESSIONALS THE GERMAN CORPORATE WORLD IS HARDLY BUBBLING WITH ENTHUSIASM AT THE PROSPECT OF BARING MORE OF ITS BALANCE SHEETS TO PUBLIC SCRUTINY EVEN ON THE BASIS OF SOME KIND OF COMPROMISE ANALYSTS HAVE LONG SPECULATED THAT ELECTRONICS AND ENGINEERING GROUP SIEMENS AG IS ONE OF GERMANY'S LARGEST HOLDERS OF HIDDEN CASH BUT THE COMPANY ISN'T RUSHING TO FOLLOW DAIMLERBENZ A SPOKESMAN SAYS SEC REPORTING STANDARDS AREN'T A KEY CONCERN BUT THEY PLAY A ROLE IN FUTURE CONSIDERATIONS PRIMARILY HOWEVER WE ASK OURSELVES IF IT MAKES SENSE TO PUBLISH TWO SEPARATE BALANCE SHEETS HE SAYS REFERRING TO THE NEED TO PRODUCE SEPARATE ACCOUNTS FOR EUROPEAN AND US INVESTORS MOST OF GERMAN INDUSTRY IS ASKING THE SAME QUESTION THE SEC DEMANDS THAT WE FOLLOW ITS GENERAL ACCOUNTING PRACTICES AND WE DON'T WANT TO FOLLOW THAT STEP SAYS A SPOKESMAN FOR BAYER AG THE BIG CHEMICAL GROUP DAIMLERBENZ'S CLOSEST COMPETITORS ALSO SAY THEY DON'T FEEL PRESSURED TO FOLLOW SUIT OFFICIALS FROM BAYERISCHE MOTOREN WERKE AG AND VOLKSWAGEN AG SAID THEY HAD NO PLANS TO PURSUE A LISTING ON THE BIG BOARD BECAUSE OF THE SEC'S EXTENSIVE DISCLOSURE CRITERIA UNLESS THAT CHANGES WE ARE NOT GOING THERE BMW CHAIRMAN EBERHARD VON KUENHEIM TOLD REPORTERS LAST THURSDAY THE US MARKET AND US INVESTORS ARE IMPORTANT TO US SAID PETER BLAU SPOKESMAN FOR THE THYSSEN AG STEEL AND ENGINEERING GROUP BUT IT'S JUST TOO EXPENSIVE AND TOO TIMECONSUMING MOREOVER SEC GUIDELINES ARE TOO RESTRICTIVE HE SAID IN THE SAME INDUSTRY SECTOR A SPOKESMAN FOR MANNESMANN AG SAID WE ARE NOT PLANNING ANYTHING WE DON'T SEE THE NEED FOR IT IF IT SOUNDS STUBBORN IT IS BECAUSE EUROPEAN COMPANIES AND PARTICULARLY GERMAN GROUPS HAVE LONG POURED SCORN ON US REPORTING PRACTICES THAT ARE THOUGHT TO EMPHASIZE QUICK PROFITS AND SHORTTERM THINKING THE PRESSURE TO SHOW THE BEST POSSIBLE QUARTERLY DIVIDEND THEY MAINTAIN DEPRIVES MANAGEMENT OF FUNDS FOR INVESTING IN A COMPANY'S FUTURE SHAREHOLDER INTERESTS IN GERMANY TRADITIONALLY ARE GIVEN A SECONDARY ROLE TO THAT OF CREDITORS ALLIANZ VERSICHERUNG AG EUROPE'S LARGEST INSURER SAYS IT IS AMONG THE LEAST INTERESTED IN DOING WHAT IT TAKES TO GET SEC SEAL OF APPROVAL OUR CUSTOMERS WANT LONGTERM RELIABILITY SAID AN ALLIANZ SPOKESMAN AND IF WE WORK THAT WAY WE HAVE TO REPORT ON THIS BASIS BANKS RESPOND PRETTY MUCH THE SAME NOT ONLY DO THEY HAVE HIDDEN RESERVES THEY ALSO RARELY REPORT FULL OPERATING PROFIT EXTRAORDINARY INCOME OR PROFIT FROM TRADING ON THEIR OWN ACCOUNT THE IMMEDIATE REACTION FROM CORPORATE GERMANY HAS PARALLELS IN SWITZERLAND MOST OF THE LARGEST SWISS COMPANIES REACTED NEGATIVELY TO INITIAL EFFORTS IN THE LATE 1980S BY NESTLE SA AND SANDOZ LTD TO OPEN UP THEIR RESTRICTED SHARE STRUCTURES AND PRODUCE MORETRANSPARENT ACCOUNTS SINCE HOWEVER THE MAJORITY OF THE COUNTRY'S INTERNATIONALLY MINDED CORPORATIONS HAVE FOLLOWED SUIT OR ARE IN THE PROCESS OF DOING SO 9303290041 930329 BRAZIL'S RESERVES DECLINE BRASILIA BRAZIL'S FOREIGNCURRENCY RESERVES FELL TO 188 BILLION IN FEBRUARY A DECLINE OF 200 MILLION FROM THE PREVIOUS MONTH THE CENTRAL BANK SAID RESERVES INCLUDING AVAILABLE CREDITS TOTALED 233 BILLION LAST MONTH DOWN 500 MILLION FROM JANUARY THE CENTRAL BANK SAID THE RESERVES DECLINE WAS DUE IN PART TO INTEREST PAYMENTS ON FOREIGN DEBT 9303290040 930329 BUSINESS BRIEFS CIVICBANK OF COMMERCE OAKLAND CALIF WILL EXPLORE SELLING ITS RESIDENTIAL MORTGAGE BANKING DIVISION BANCTEC INC'S SCANDATA UNIT RECEIVED A 14 MILLION ORDER FOR ITS FINANCIALTRANSACTION PROCESSING SYSTEM FROM POSTGIRO OF SWEDEN PAGES INC BOUGHT ATLANTABASED ADVANTAGE BOOK CO TERMS WEREN'T DISCLOSED PPG INDUSTRIES INC BOUGHT A CHEMICAL PLANT IN THE NETHERLANDS FROM A JOINT VENTURE OF ALLIEDSIGNAL INC AND UNION CARBIDE CORP TERMS WEREN'T DISCLOSED CROWN CORK & SEAL CO'S CONSTAR INTERNATIONAL UNIT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF A CONTROLLING INTEREST IN NETHERLANDSBASED WELLSTAR HOLDING BV FROM WELLMAN INC FOR 33 MILLION UNITED TECHNOLOGIES CORP'S OTIS ELEVATOR CO UNIT SIGNED A JOINTVENTURE AGREEMENT TO SELL AND REPAIR ELEVATORS AND ESCALATORS IN THE PUDONG DEVELOPMENT ZONE OF SHANGHAI TERMS WEREN'T DISCLOSED 9303290039 930329 ABREAST OF THE MARKET AN UPBEAT OUTLOOK FOR FIRSTQUARTER EARNINGS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU LISTENED TO ELI LILLY AMDAHL AND A HANDFUL OF OTHER COMPANIES YOU MIGHT THINK THAT IT WAS A LOUSY FIRST QUARTER FOR CORPORATE AMERICA WRONG SAY MANY ANALYSTS EVEN THOUGH COMPANIES ARE HITTING THE NEWSWIRES DAILY WITH WARNINGS THAT FIRSTQUARTER EARNINGS WON'T LIVE UP TO EXPECTATIONS THE OUTLOOK FOR CORPORATE PROFITS IS SURPRISINGLY GOOD SOME ANALYSTS SAY OVERALL I THINK EARNINGS ARE GOING TO BE VERY STRONG IN THE FIRST QUARTER WHEN THEY ARE LOOKED AT ON A YEAROVERYEAR BASIS SAYS JOSEPH MCALINDEN CHIEF MARKET STRATEGIST AT DILLON READ SAYS STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO IF YOU ARE BULLISH ON THE STOCK MARKET AT ALL IT HAS TO BE BECAUSE OF EARNINGS THERE ARE NICHES AND SECTORS OF DISAPPOINTMENT BUT I DON'T THINK THE BROAD PICTURE OF EARNINGS IS DISAPPOINTING AT ALL MR RESNICK NOTES THAT SO FAR THIS YEAR 52 OF ALL EARNINGS SURPRISES MOSTLY FOURTHQUARTER RESULTS HAVE BEEN POSITIVE THAT'S ENCOURAGING BECAUSE IT COUNTERS THE USUAL TREND HISTORICALLY SINCE ANALYSTS ON WALL STREET TEND TO ERR ON THE SIDE OF OPTIMISM THE MAJORITY OF EARNING SURPRISES USUALLY WIND UP BEING NEGATIVE AND EVEN THOUGH COMPANIES LIKE AMDAHL ARE PREWARNING INVESTORS ABOUT FIRSTQUARTER EARNINGS DISAPPOINTMENTS BEN ZACKS EXECUTIVE VICE PRESIDENT OF ZACKS INVESTMENT RESEARCH SAYS THIS IS A RITUAL THAT HAPPENS EVERY QUARTER COMPANIES THAT EXPECT BAD EARNINGS TELL INVESTORS EARLY WHILE THOSE WITH GOOD NEWS OFTEN WAIT INDEED THE DRUMBEAT OF BAD NEWS ISN'T AS BAD THIS QUARTER AS IT USUALLY IS MR ZACKS SAYS THE PRELIMINARY ANNOUNCEMENTS THIS QUARTER AREN'T AS BAD AS THE PREVIOUS COUPLE OF QUARTERS AND THEY AFFECT FEWER INDUSTRIES HE SAYS MR ZACKS ALSO SAYS THAT WHILE WALL STREET ANALYSTS HAVE BEEN RATCHETING DOWN THEIR FIRSTQUARTER EARNINGS ESTIMATES SINCE THE START OF THE YEAR THE ESTIMATE CUTTING ISN'T AS FIERCE AS IT'S BEEN IN EARLIER QUARTERS ACCORDING TO MR ZACKS WALL STREET ANALYSTS NOW EXPECT EARNINGS FOR THE COMPANIES IN THE STANDARD & POOR'S 500STOCK INDEX TO GROW BY 135 IN THIS QUARTER DOWN FROM 175 AT THE START OF THE YEAR MR ZACKS SAYS MOST OF THE ESTIMATE CUTTING HAS COME IN AIRLINE DRUG PAPER CHEMICAL MAINFRAME COMPUTER FOOD PROCESSING WASTE MANAGEMENT AND POLLUTION CONTROL STOCKS FOR INSTANCE ANALYSTS HAVE TURNED TO PROJECTING A 25CENTASHARE FIRSTQUARTER LOSS FOR INTERNATIONAL BUSINESS MACHINES FROM ESTIMATING A 25CENTASHARE PROFIT A FEW MONTHS AGO ESTIMATES FOR MERCK HAVE FALLEN TO 53 CENTS A SHARE IN THE PAST MONTH FROM 57 CENTS PROJECTIONS FOR CONNER PERIPHERALS HAVE DROPPED TO 45 CENTS FROM 61 CENTS AND ANALYSTS HAVE GONE FROM FORECASTING A 10CENTSASHARE PROFIT FOR STORAGE TECHNOLOGY TO A BREAKEVEN QUARTER BY CONTRAST SOME OF THE AREAS IN WHICH ANALYSTS ARE GENERALLY RAISING ESTIMATES INCLUDE FOREST PRODUCTS REGIONAL BANKS AND SEMICONDUCTOR STOCKS MR ZACKS POINTS OUT THAT ESTIMATES FOR CONTINENTAL BANK HAVE BEEN BOOSTED TO 80 CENTS A SHARE FROM 68 CENTS TWO MONTHS AGO PROJECTIONS FOR INTEL HAVE CLIMBED TO 205 FROM 175 AND LOUISIANAPACIFIC IS NOW SEEN EARNING 125 IN THE FIRST QUARTER UP FROM 103 A SHARE EARLIER THIS YEAR ONE BROAD GROUP OF COMPANIES THAT MOST ANALYSTS EXPECT WILL DISAPPOINT IN THE FIRST QUARTER IS BIG MULTINATIONAL FIRMS AND HEALTHCARE CONCERNS MANY OF THESE COMPANIES WILL FIND THEIR BOTTOM LINES HURT BY A STRENGTHENING DOLLAR AND WEAKNESS IN OVERSEAS MARKETS ABBY COHEN A MARKET STRATEGIST AT GOLDMAN SACHS SAYS ONE OF THE REASONS GOLDMAN ADOPTED A MORE NEUTRAL POSTURE ON STOCKS RECENTLY WAS THE FEAR THAT EARNINGS PARTICULARLY FOR COMPANIES WITH EXPOSURE TO EUROPE WOULD FALL SHORT OF EXPECTATIONS IN THE FIRST QUARTER GIVEN THE ONGOING DETERIORATION IN CONTINENTAL EUROPE IT IS NOT QUITE CLEAR WHEN ECONOMIC GROWTH THERE WILL BE ADDITIVE TO US PROFITS SAYS MS COHEN ADDING THAT US COMPANIES MAY NOT RECEIVE A HAND FROM EUROPE UNTIL SOMETIME IN 1994 THOUGH MS COHEN DOESN'T THINK FIRSTQUARTER RESULTS WILL BE SO POOR THAT THEY TRIGGER A MARKET CORRECTION SHE THINKS IT'S LIKELY THAT THEY WILL INTENSIFY THE SECTOR ROTATION THAT HAS ALREADY TURNED PARTS OF THE MARKET INTO A MINEFIELD AND MR MCALINDEN OF DILLON READ CONCEDES THAT FIRSTQUARTER PROFIT GAINS PROBABLY WON'T BE AS GREAT AS THOSE IN THE FOURTH QUARTER THE 92 GAIN IN AFTERTAX PROFITS OF US CORPORATIONS DURING THAT PERIOD WAS THE LARGEST SINCE THE FIRST QUARTER OF 1992 ECONOMIC REPORTS SO FAR THIS YEAR HAVE SUGGESTED THAT FIRSTQUARTER GROWTH SLOWED SOMEWHAT FROM THE FOURTHQUARTER PACE AND IT ISN'T UNREASONABLE THAT COMPANIES ARE SEEING THE SLUGGISHNESS IN THEIR BOTTOM LINE HE SAYS MR MCALINDEN SUSPECTS SOME ECONOMICALLY SENSITIVE COMPANIES WILL SUFFER BECAUSE THE ECONOMY ISN'T YET STRONG ENOUGH TO ALLOW THEM TO PASS ALONG RISING COSTS THEIR EARNINGS POWER IS GOING TO IMPROVE THROUGH THE YEAR BUT SOME OF THESE CYCLICAL COMPANIES ARE GOING TO BE HURT MORE THAN HELPED IN THE FIRST QUARTER HE SAYS THAT'S BECAUSE THEY ARE HAVING TO PAY MORE FOR RAW MATERIALS AND THEY'RE STILL UNABLE TO PASS THE HIGHER COSTS ONTO CUSTOMERS BUT MR MCALINDEN SUGGESTS THAT THE POOR RESULTS FROM THESE GROUPS WILL BE OVERSHADOWED BY STRONGERTHANEXPECTED EARNINGS FROM BANKS WHICH ARE PROFITING FROM LOW BORROWING COSTS AND ENERGY COMPANIES WHICH ARE BENEFITING FROM HIGHER NATURAL GAS PRICES IN ANY EVENT SOME ANALYSTS ARGUE THAT EVEN IF OVERALL FIRSTQUARTER RESULTS ARE STRONG THEY PROBABLY WON'T TRIGGER EQUALLY STRONG STOCK PRICE GAINS I THINK THE MARKET HAS ALREADY DISCOUNTED A SPECTACULAR SURGE IN EARNINGS SAYS MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER IF EARNINGS ARE AS GOOD AS EXPECTED THE MARKET WILL BE FLAT AND IF EARNINGS ARE POOR THEN THERE'LL BE A BIG DROP MR METZ SAYS SOME OF THE COMPANIES THAT HAVE INDICATED THEY EXPECT LOWERTHANEXPECTED EARNINGS SUCH AS AMDAHL AND MERCK MAY BE REPRESENTATIVE OF THEIR INDUSTRIES THESE ARE NOT FLUKES OR ISOLATED CASES HE SAYS THE BIG QUESTION ON HIS MIND IS WHETHER THE AGGRESSIVE PRICECUTTING WHICH HAS HURT MARGINS IN THE PERSONALCOMPUTER BUSINESS FOR INSTANCE WILL SPREAD TO OTHER AREAS THIS MARGIN PRESSURE COULD BECOME A DISEASE HE SAYS IF IT SPREADS STOCK INVESTORS WHO ARE EXPECTING PROFIT MARGINS TO EXPLODE AS THE ECONOMY RECOVERS WILL BE SORELY DISAPPOINTED STOCKS SLUMPED ON A LATE SURGE OF COMPUTERGUIDED PROGRAM SELLING THE DOW JONES INDUSTRIAL FELL 2134 POINTS TO 343998 STANDARD & POOR'S 500STOCK INDEX LOST 310 TO 44778 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DROPPED 126 TO 24707 VOLUME ON THE BIG BOARD TOTALLED 219130000 SHARES DOWN FROM 250020000 SHARES THURSDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1007 TO 837 FOR THE WEEK THE DOW INDUSTRIALS SLIPPED 09 THE S&P 500 EASED 05 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 04 INTERNATIONAL BUSINESS MACHINES ADDED 7/8 TO 51 3/8 AS EXPECTED THE BIG COMPUTER MAKER NAMED RJR NABISCO CHAIRMAN LOUIS V GERSTNER JR AS ITS NEW CHIEF EXECUTIVE RJR NABISCO WAS UNCHANGED AT 8 IN HEAVY TRADING THE FOOD AND TOBACCO GIANT NAMED LAWRENCE R RICCIARDI AND KARL M VON DER HEYDEN COCHAIRMEN AND CHIEF EXECUTIVES NORTHERN TELECOM PLUNGED 4 3/4 TO 37 7/8 THE COMPANY SAID EARNINGS FOR THE FIRST QUARTER WILL FALL SHORT OF ANALYSTS' EXPECTATIONS BANKERS LIFE HOLDING WAS THE MOST ACTIVE STOCK ON THE BIG BOARD RISING 2 1/2 TO 24 1/2 THE COMPANY SOLD 17 MILLION COMMON SHARES AT 22 APIECE IN AN INITIAL PUBLIC OFFERING LATE THURSDAY FIRSTFED FINANCIAL SLID 2 1/8 TO 23 THE HOLDING COMPANY FOR FIRST FEDERAL BANK OF CALIFORNIA SAID THE BANK'S ACTUAL LOAN LOSSES FOR THE FIRST QUARTER WILL BE MORE THAN TWICE THE 5 MILLION THAT HAD BEEN EXPECTED 9303290038 930329 WR GRACE EXPECTS VERY STRONG' QUARTER FROM ITS OPERATIONS BOCA RATON FLA DESPITE WEAK SALES IN MOST RECESSIONPLAGUED EUROPEAN COUNTRIES WR GRACE & CO EXPECTS A VERY STRONG FIRST QUARTER THAT WILL EXCEED BY AT LEAST 10 THE 245 MILLION OR 27 CENTS A SHARE IN OPERATING PROFIT RECORDED IN LAST YEAR'S FIRST QUARTER SAID JP BOLDUC PRESIDENT AND CHIEF EXECUTIVE OFFICER GRACE A SPECIALTYCHEMICAL AND HEALTHCAREPRODUCT COMPANY ALSO EXPECTS FULLYEAR 1993 RESULTS TO EXCEED BY AT LEAST 10 1992'S 2245 MILLION OR 250 A SHARE IN OPERATING PROFIT MR BOLDUC SAID THE 1992 FIRSTQUARTER AND FULLYEAR FIGURES HAVE BEEN RESTATED TO REFLECT DISCONTINUED OPERATIONS THE COMPANY SAID MAJOR DISCONTINUED OPERATIONS INCLUDE GRACE'S OIL AND GAS BUSINESSES AND ITS COLOWYO COAL OPERATIONS GRACE EXPECTS TO REPORT FIRSTQUARTER RESULTS BY THE END OF THE THIRD WEEK OF APRIL MR BOLDUC SAID THE COMPANY IS COMFORTABLE WITH WALL STREET ESTIMATES THAT GRACE WILL EARN 280 TO 285 A SHARE ON AN OPERATING BASIS THIS YEAR MR BOLDUC SAID FIRSTQUARTER OPERATING PROFIT WOULD BE UP 20 IF NOT FOR EUROPE OUR EUROPEAN OPERATIONS ARE IN THE PITS ABOUT 30 OF GRACE'S 552 BILLION IN REVENUE LAST YEAR CAME FROM EUROPEAN OPERATIONS MR BOLDUC'S COMMENTS ON EUROPE ECHOED THOSE OF OTHER AMERICAN AND EUROPEAN CHEMICAL COMPANY OFFICIALS IN RECENT MONTHS INTERNATIONAL CHEMICAL COMPANIES NOTABLY GERMANY'S BIG THREE BASF AG HOECHST AG AND BAYER AG SAY EUROPEAN OPERATIONS ESPECIALLY IN GERMANY AND FRANCE ARE EXTREMELY WEAK AND SHOW NO SIGN OF RECOVERING THIS YEAR ALSO ACTING AS A DRAG ON GRACE'S RESULTS WERE NONCORE BUSINESSES SUCH AS COCOA WHERE A GLUT ON WORLD MARKETS HAS DEPRESSED PRICES MR BOLDUC SAID GRACE IS IN THE MIDST OF A MAJOR RESTRUCTURING THAT IT FIRST ANNOUNCED IN 1990 IN WHICH IT IS DIVESTING NONCORE BUSINESSES TO FOCUS FUTURE INVESTMENT ON SIX CORE BUSINESSES HEALTH CARE PACKAGING CATALYSTS CONSTRUCTION PRODUCTS CONTAINER SEALANTS AND WATERTREATMENT PRODUCTS 9303290037 930329 INTERNATIONAL ITALY'S JOBLESS RATE FALLS TO 95 MILAN ITALY'S UNEMPLOYMENT RATE STOOD AT 95 IN THE THIRD QUARTER OF 1992 SLIGHTLY DOWN FROM 108 IN THE SECOND QUARTER ACCORDING TO QUARTERLY FIGURES RELEASED BY STATE STATISTICAL OFFICE ISTAT THE RATE FOR LONGTERM UNEMPLOYED IN THE QUARTER WAS 136 ISTAT SAID THE UNEMPLOYMENT RATE WAS HIGHEST IN THE MEZZOGIORNO ITALY'S UNDERDEVELOPED SOUTH WHERE IT WAS 1631 IN THE THIRD QUARTER DOWN FROM 194 IN THE SECOND QUARTER UNEMPLOYMENT IN CENTRAL ITALY ALSO DECREASED TO 759 FROM 9 IN THE PRECEDING QUARTER WHILE IN THE NORTH OF ITALY THE RATE ROSE TO 569 FROM 54 IN THE SECOND QUARTER ISTAT SAID THE THIRD QUARTER IS TRADITIONALLY A PERIOD OF TEMPORARY SUMMER EMPLOYMENT 9303290036 930329 INTERNATIONAL RUSSIAN CONGRESS FAILS IN ITS BID TO OUST YELTSIN AND KHASBULATOV POLITICAL TUSSLE CONTINUES FOCUSING ON PLEBESCITE NEW MONITORS FOR MEDIA BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW IN SECRET BALLOTING SUNDAY EVENING THE CONGRESS OF PEOPLE'S DEPUTIES TRIED AND FAILED TO OUST PRESIDENT BORIS YELTSIN AS WELL AS HIS RIVAL PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV AS RUSSIA'S POLITICAL ARMWRESTLING CONTINUED ALTHOUGH MR YELTSIN BARELY SCRAPED THROUGH THE VOTE IMMEDIATELY AFTER THE RESULTS WERE ANNOUNCED HE APPEARED IN FRONT OF THE THOUSANDS OF SUPPORTERS WHO HAD KEPT VIGIL THROUGHOUT THE RAW SPRING NIGHT AT THE FOOT OF RED SQUARE THIS IS A VICTORY FOR THE PEOPLE FOR REFORM FOR DEMOCRACY THE EMBATTLED PRESIDENT SAID YOUNG RUSSIA HAS WON AND WILL CONTINUE PROGRESSING THE CONGRESS HAD CONVENED FRIDAY IN FURY OVER THE PRESIDENT'S DECLARATION OF SPECIAL RULE A WEEK AGO AND HIS SUBSEQUENT WATEREDDOWN DECREE ON ADMINISTRATIVE CONTROL DURING THE CRISIS AIDES TO MR YELTSIN MAINTAINED THAT THE PRESIDENT'S MAIN GOAL FOR THE CONGRESS WAS TO PROCEED WITH AN APRIL 25 PLEBESCITE WITH ONE QUESTION DO YOU BELIEVE IN PRESIDENT YELTSIN BY SATURDAY THE CONGRESS HAD CONDEMNED THE PRESIDENT AND TRIED TO COOPT THE APRIL VOTE WITH THEIR OWN REFERENDUM INCLUDING SEVERAL QUESTIONS LATE SATURDAY NIGHT MESSRS YELTSIN AND KHASBULATOV HAMMERED OUT AN 11THHOUR COMPROMISE IN WHICH MR YELTSIN ABANDONED HIS PLEBESCITE AND AGREED TO EARLY ELECTIONS IN NOVEMBER FOR BOTH PRESIDENT AND A NEW TWOCHAMBER PARLIAMENT BUT THE COMPROMISE WAS CRUSHED IN THE FIRST HOUR OF SUNDAY'S MEETING DERIDED BY LIBERALS AND CONSERVATIVES ALIKE WITHIN HOURS THE CONGRESS INSTEAD DECIDED TO VOTE ON FIRING BOTH THE PRESIDENT AND PARLIAMENT CHAIRMAN USING SECRET BALLOTS THE MOTION TO OUST MR YELTSIN WAS SUPPORTED BY 617 VOTES LESS THAN THE TWOTHIRDS OR 689 VOTES THAT WOULD HAVE BEEN REQUIRED MR KHASBULATOV'S REMOVAL WAS SUPPORTED BY 339 WELL SHORT OF THE SIMPLE MAJORITY OR 517 THAT WOULD HAVE BEEN REQUIRED DEMOCRATS WERE ANGRY THAT MR YELTSIN HAD TRADED AWAY THE APRIL 25 REFERENDUM AND EXTREME CONSERVATIVES REJECTED THE COMPROMISE PREFERRING TO PRESS AHEAD WITH A BID TO IMPEACH MR YELTSIN AND REPLACE MR KHASBULATOV WITH A MORE STEADFAST COMMUNIST BUT MORE THAN THAT BOTH SIDES EXPRESSED A TOTAL MISTRUST OF BOTH LEADERS AND A LACK OF FAITH IN THE POLITICAL SYSTEM MANY DEPUTIES SAID THEY SUSPECTED BOTH LEADERS FOR CUTTING THE DEAL JUST TO SAVE THEIR OWN JOBS THIS LACK OF TRUST IS THE MAIN REASON THE FIGHTING WILL GO ON NEITHER SIDE BELIEVES THE OTHER WILL CARRY THROUGH ON ANY PROMISES MADE AS PART OF A COMPROMISE AND BOTH BELIEVE THAT COMPROMISE IN ITSELF REVEALS WEAKNESS MR YELTSIN INTENDS TO MOVE AHEAD WITH HIS PLANNED PLEBESCITE HIS OPPONENTS PLAN TO PUSH FOR A REFERENDUM THAT WILL INCLUDE SEVERAL QUESTIONS INCLUDING A VOTE ON THE ECONOMIC REFORMS THAT HAVE BEEN CARRIED OUT UNDER MR YELTSIN'S LEADERSHIP WHILE MOST ATTENTION WAS FOCUSED ON THE OUSTER VOTE HARDLINERS IN THE CONGRESS SMOOTHLY PUSHED THROUGH A RESOLUTION IN A 537TO263 VOTE TO TAKE OVER THE STATE MEDIA THAT COULD PROVE EVEN MORE SIGNIFICANT THAN A VOTE TO IMPEACH THE PRESIDENT SOME DEMOCRATS SAY UNDER THE RESOLUTION PARLIAMENT WILL FORM OVERSIGHT COUNCILS TO MONITOR STATEOWNED MEDIA INCLUDING THE TWO STATE NEWS AGENCIES ITARTASS AND THE RUSSIAN INFORMATION AGENCY THE DEPUTIES ARGUE THAT THEY ARE PREVENTING MR YELTSIN FROM USING THE AGENCIES FOR A PROPAGANDA CAMPAIGN AGAINST THE CONGRESS AND OPPONENTS OF ECONOMIC REFORMS THIS IS A MORE ENORMOUS COUP THAN THE IMPEACHMENT OF THE PRESIDENT WOULD BE SAID LIBERAL DEPUTY LEONID GURIEVICH IT IS A CLEAR AND HARD TURN BACKWARD THAT NOT ONLY STARTS TO OPEN THE DOOR TO ALL THE COMMUNIST PAST BUT SHOWS THAT IT IS ALREADY OPEN MR YELTSIN HAS MADE HIS OWN BOLD MOVES SINCE THE EMERGENCY CONGRESS OPENED FRIDAY IN AN EFFORT TO SHOW HE IS STILL IN POWER HE FIRED THE FINANCE MINISTER AND NAMED BORIS FYODOROV IN HIS PLACE THE APPOINTMENT OF MR FYODOROV A REFORMER WHO WAS BROUGHT INTO THE GOVERNMENT WHEN ECONOMIC REFORM CZAR YEGOR GAIDAR WAS DRIVEN OUT IN DECEMBER IS WELCOMED BY FOREIGN ECONOMIC ADVISERS WHILE THE GOVERNMENT SHAKEUPS SO FAR HAVEN'T THREATENED REFORM A SERIES OF ECONOMIC DECREES DESIGNED TO SOFTEN THE BLOW ARE MORE POPULIST THAN PRUDENT MR YELTSIN TOLD THE CONGRESS THAT HE REALIZED THERE HAD BEEN MISTAKES WITH SHOCK THERAPY AND THAT REFORM HAD TO INCLUDE MORE SOCIAL PROTECTION THE DECREES INCLUDE DOUBLING THE MINIMUM WAGE ORDERING SAVINGS BANKS TO COMPENSATE FOR LOSSES IN THE VALUE OF DEPOSITORS' ACCOUNTS BECAUSE OF INFLATION AND ALLOWING REGIONAL GOVERNMENTS TO STABILIZE PRICES ON BASIC GOODS HE TALKS ABOUT STICKING WITH A TIGHT BUDGET BUT THEN PROMISES TO GIVE ALL KINDS OF PEOPLE MORE MONEY SAYS ONE WESTERN ECONOMIC ADVISER GOOD LUCK NEELA BANERJEE CONTRIBUTED TO THIS ARTICLE 9303290035 930329 CLEARING THE AIR WHAT REALLY POLLUTES STUDY OF A REFINERY PROVES AN EYEOPENER AN EPAAMOCO TEST FINDS THAT COSTLY RULES FOCUS ON WRONG PART OF PLANT ONE GIGANTIC CULTURE CLASH BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL NOWHERE HAS ANIMOSITY BETWEEN REGULATOR AND REGULATED BEEN MORE ACRID THAN IN ENVIRONMENTALISM AND POLLUTION CONTROL BUT NOW SOME SIGNS OF CHANGE AND PRAGMATISM ARE IN THE AIR THE ADVERSARIAL RELATIONSHIP THAT NOW EXISTS IGNORES THE REAL COMPLEXITIES OF ENVIRONMENTAL AND BUSINESS PROBLEMS SAID CAROL BROWNER HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY AT HER CONFIRMATION HEARINGS LAST WEEK SHE TOLD THE AUTO INDUSTRY SHE FAVORS FLEXIBILITY IN MEETING CLEANAIR GOALS AS IT HAPPENS THE EPA ITSELF HAS BEEN INVOLVED IN A FARREACHING EXPERIMENT IN FINDING NEW APPROACHES TO POLLUTION CONTROL ONE THAT HAS INVOLVED NOTHING LESS THAN A FULLBORE STUDY OF HOW BEST TO REGULATE AN OIL REFINERY THE STUDY LAUNCHED FOUR YEARS AGO AS AN UNPRECEDENTED JOINT VENTURE BETWEEN THE EPA AND AMOCO CORP TESTED THE GOODWILL OF BOTH SIDES ENORMOUS OBSTACLES OF MISTRUST HAD TO BE SURMOUNTED AS THE TWO SIDES FOUND THAT IN JARGON AND ANALYSIS THEY LITERALLY DIDN'T SPEAK THE SAME LANGUAGE THE STUDY WAS ALMOST DOOMED MIDWAY THROUGH WHEN THE EPA SLAPPED A STERN PENALTY ON AMOCO IN AN UNRELATED MATTER YET THE PROJECT FINALLY WAS COMPLETED WITH STARTLING CONCLUSIONS AMONG THEM THE REFINERY COULD ACHIEVE GREATER POLLUTION REDUCTION FOR ABOUT 11 MILLION THAN IT IS GETTING FOR A 41 MILLION EXPENDITURE REQUIRED BY CURRENT EPA REGULATIONS EQUALLY UNSETTLING WHILE THAT 41 MILLION WAS SPENT TO TRAP AIR POLLUTION FROM THE REFINERY'S WASTEWATER SYSTEM NO CONTROLS AT ALL WERE REQUIRED OR YET EXIST ON A PART OF THE PLANT THAT THE STUDY SHOWED TO EMIT FIVE TIMES AS MUCH POLLUTION IT COULD BE DEALT WITH FOR A MERE 6 MILLION WHY SUCH MISCALCULATIONS BECAUSE IT TURNS OUT NOBODY HAD EVER ACTUALLY TESTED TO SEE HOW MUCH AIR POLLUTION THE REFINERY WAS EMITTING OR WHERE THE POLLUTION WAS COMING FROM THE CLINTONADMINISTRATION EPA IS JUST BEGINNING TO CONSIDER THE REFINERY STUDY KNOWN AS THE YORKTOWN PROJECT WHICH IS NOW WINDING UP WITH A MULTIVOLUME REPORT THAT WILL CALL FOR SUCH CHANGES AS TAILORING A SOLUTION TO EACH INDUSTRIAL FACILITY BUT MS BROWNER INDICATES SHE IS SYMPATHETIC TO MANY OF ITS IDEAS IF WE WERE STARTING OUT TODAY TO DEVELOP AN ENVIRONMENTAL PROGRAM WITH ALL THE KNOWLEDGE WE HAVE TODAY WE'D PROBABLY DO IT QUITE DIFFERENTLY SHE SAYS IN AN INTERVIEW WHAT I'M ABSOLUTELY COMMITTED TO IS MAKING SURE WE CAN DO THE JOB WE NEED TO DO IN THE LEAST COSTLY MOST EXPEDITIOUS MANNER THE SPARK FOR THE RARE EPAINDUSTRY JOINT STUDY WAS A CHANCE MEETING OF OLD ACQUAINTANCES ABOARD A 1989 CHICAGOTOWASHINGTON FLIGHT DEBORA SPARKS GRABBED THE OPEN SEAT NEXT TO JAMES LOUNSBURY THEY HAD BEEN PART OF A WASHINGTON CROWD THAT USED TO GATHER AFTER WORK IN THE 1970S AT BARS ALONG PENNSYLVANIA AVENUE AFTER SOME CATCHING UP THEY BEGAN TALKING ABOUT THEIR WORK POLLUTION ENERGY REGULATION THOUGH BOTH HAD WORKED IN THE ENERGY INDUSTRY IN THE OLD DAYS NOW MUCH HAD CHANGED MR LOUNSBURY WAS AT THE EPA MS SPARKS WORKED FOR AMOCO THEY TALKED ABOUT THE COMPLAINTS OF EACH SIDE ABOUT POLLUTION CONTROL AND HOW DESPITE ALL THE COST AND EFFORT MUCH POLLUTION WENT UNCONTROLLED THE TENOR OF THE INFLIGHT CONVERSATION RECALLS MR LOUNSBURY WAS IF WE COULD BE KING AND QUEEN FOR A DAY WOULDN'T IT BE NICE IF WE COULD RESTRUCTURE THE WORLD OF ENVIRONMENTAL ANALYSIS THEY WONDERED IF SOMETHING MIGHT COME OF A JOINT LOOK BY REGULATOR AND REGULATEE AT A PARTICULAR POLLUTION SITE WHEN THE PLANE LANDED THE TWO RETURNED TO THEIR OFFICES FULL OF ENTHUSIASM BUT UNSURE HOW TO CHANNEL IT TO MR LOUNSBURY AT THE EPA THE NOTION OF WORKING WITH AN OIL COMPANY WAS DANGEROUS HERESY BUT HE KNEW A MIDLEVEL REGULATOR WHOSE JOB WAS TO LOOK AT NEW WAYS TO REGULATE AND WHO HAD MULLED THE IDEA OF A JOINT VENTURE WITH AN ENERGY COMPANY MR LOUNSBURY SAID HE HAD A CANDIDATE AS FOR MS SPARKS OF AMOCO THERE WAS SOME PART OF ME THAT WORRIED ABOUT COMING ACROSS AS A FLAKE BUT SHE GENTLY SUGGESTED AN EPA JOINT VENTURE IT WAS A HARD SELL IN AMOCO RECALLS THE COMPANY'S VICE PRESIDENT FOR ENVIRONMENTAL AFFAIRS WALTER QUANSTROM LOTS OF PEOPLE THOUGHT THAT OPENING THE GATES WAS STUPID BECAUSE THE REGULATORS WOULD CRAWL AROUND A PLANT AND FIND PROBLEMS YET WITHIN A FEW DAYS HE TOLD MS SPARKS TO BEGIN DEVELOPING A PROJECT TO TAKE A DEEP LOOK JOINTLY WITH THE EPA AT THE POLLUTION OUTPUT AND POSSIBLE PREVENTIVE MEASURES AT ONE OF AMOCO'S FACILITIES SOON MS SPARKS MR LOUNSBURY AND THE MIDLEVEL EPA OFFICIAL MR LOUNSBURY HAD IN MIND A QUIET MAN NAMED MAHESH PODAR BEGAN MEETING AT EPA OFFICES AND A HARDEE'S RESTAURANT THEY WERE STIFF ENCOUNTERS IN WHICH WE SOMETIMES USED WORDS THAT DIDN'T MEAN THE SAME THING MS SPARKS SAYS FOR AMOCO RISK WAS A TERM OF ECONOMICS DEALING WITH ISSUES LIKE EFFICIENCY AND RESULTS SHE SAYS TO THE EPA SHE SAYS IT WAS A FOURLETTER WORD THAT MEANT POLITICAL PERIL OR HEALTH RISK MR LOUNSBURY SET SOME GROUND RULES AT NO POINT COULD A STUDY RECOMMEND CHANGING LAWS ALTERING PERMITS AT THE INDUSTRY PLANT THAT WAS STUDIED OR OVERLOOKING ANY VIOLATIONS AMOCO OFFERED ITS YORKTOWN VA OIL REFINERY SOON TEAMS FROM AMOCO AND THE EPA CAME TOGETHER FOR THEIR FIRST FORMAL MEETING AT AMOCO'S WASHINGTON OFFICE THE FIRST THREE OR FOUR MEETINGS SAYS HOWARD KLEE NAMED TO HEAD THE PROJECT FOR AMOCO WERE WHAT I ENVISION THE VIETNAM PEACE TALKS WERE LIKE WHEN THEY FOUGHT OVER THE SHAPE OF THE TABLE AMOCO EXECUTIVES THE MEN AMONG THEM WEARING BLUE OR GRAY SUITS AND CRISP WHITE SHIRTS VOICED CONCERNS ABOUT BEING FINED FOR VIOLATIONS THE REGULATORS MIGHT STUMBLE OVER EPA TYPES IN LESS FORMAL ATTIRE RETORTED THAT EPA IS NOT IN A POSITION TO OFFER THE COMPANY A SHIELD SAID MR PODAR WHOM THE EPA HAD NAMED TO HEAD THE PROJECT FROM ITS END PLEASANTRIES WERE FEW THE MEETING WOULD END AND WE'D GO OFF TO OUR RESPECTIVE CORNERS SAYS MS SPARKS ONE DAY AMOCO BROUGHT SANDWICHES AND CHIPS FOR THE GROUP A SMALL OFFERING REGULATORS EACH DROPPED A FEW DOLLARS IN AN ENVELOPE AND PASSED IT ACROSS THE TABLE THEY WOULD NOT BE BOUGHT THE FIRST BARRIER TO OVERCOME WAS LANGUAGE AMOCO EXECUTIVES KEPT REFERRING TO RVS AMOCOESE FOR RELIEF VALVES AN EPA STAFFER THOUGHT THEY MEANT RECREATIONAL VEHICLES THE INDUSTRY TYPES ALSO SPOKE OF PIGGING OUT THE LINE IT TURNED OUT TO MEAN CLEANING A PIPELINE BY PUSHING A SCRUBBER CALLED A PIG THROUGH IT AMOCO WAS EQUALLY STUMPED BY EPA JARGON LIKE RED BORDER REVIEW IT MEANT THE FINAL REVIEW OF AN EPA RULE BEFORE IT WAS PUBLISHED IN THE FEDERAL REGISTER AFTER A SERIES OF THESE PAINFUL MEETINGS THE GROUP ARRIVED WITH SOME RELIEF AT A GENUINE REGULATORY PROBLEM THEY REALIZED THEY DIDN'T KNOW PRECISELY HOW TO MEASURE EMISSIONS FROM THE REFINERY SURPRISINGLY THIS WAS NEW GROUND FOR BOTH THE EPA EVEN THOUGH AIRPOLLUTIONCONTROL IS A CENTRAL MISSION DOESN'T OFTEN MEASURE EMISSIONS FROM INDUSTRIAL PLANTS IT ENFORCES REGULATIONS SPELLING OUT WHAT EQUIPMENT A PLANT MUST HAVE WITH THE BELIEF THAT THIS WILL KEEP POLLUTION LOW IT MAY CHECK THAT A CERTAIN TYPE OF SMOKESTACK IS A CERTAIN HEIGHT FOR INSTANCE OR WHETHER A WATER FILTER IS IN PLACE BUT THESE RULES ARE OFTEN BASED ON OLD OR OVERGENERALIZED INFORMATION AND RARELY ALLOW FOR ADJUSTMENT TO INDIVIDUAL CASES REGULATORS FROM EACH OF THE POLLUTIONCONTROL DIVISIONS AIR WATER AND SOLID WASTE VISIT PLANTS EVERY FEW YEARS WITH LONG CHECKLISTS TOO MANY MISSED CHECKS MAY RESULT IN AN ORDER TO MODIFY THE PLANT OR IN A FINE BUT TO WHAT EXTENT THE RULES ARE ACTUALLY REDUCING POLLUTION AT A GIVEN SITE AND WHETHER THEY ARE DOING SO IN THE MOST PROFICIENT OR EFFICIENT WAY ARE NORMALLY NOT AT ISSUE NOR DOES THE REGULATED INDUSTRIAL COMPANY GENERALLY MEASURE ACTUAL POLLUTION IT TOO FOCUSES ON THE RULES IT MUST MEET IF THE PROJECT WAS GOING TO LEARN ANYTHING AT ALL ABOUT THE EFFICIENCY OF CURRENT POLLUTIONCONTROL EFFORTS IT WOULD HAVE TO DEVISE WAYS TO MEASURE THE POLLUTANTS GIVEN OFF BY THE REFINERY AS A WHOLEFUMES FLUIDS AND SOLID WASTES ONLY THEN COULD IT CONSIDER THE BEST WAYS TO KEEP THEM OUT OF THE AIR AND WATER AND SOIL THE AMOCO EXECUTIVES WERE SURPRISED TO LEARN THAT THE EPA OFFICIALS REGULATING EACH OF THOSE THREE KINDS OF POLLUTION SELDOM SPOKE TO ONE ANOTHER THEY OPERATED FROM SEPARATE OFFICES ENFORCING SEPARATE POLLUTION LAWS AND MAINTAINING THEIR OWN REGULATORY STAFFS IT WAS FOR THAT REASON THAT THE EPA OVERSAW ITS END OF THE STUDY FROM ITS POLICY OFFICE IN WASHINGTON AWAY FROM TURFCONSCIOUS DIVISION REGULATORS J CLARENCE DAVIES WHO HEADED THE POLICY OFFICE SAYS THAT SOME WITHIN EPA WERE STRONGLY OPPOSED TO THE JOINT PROJECT WITH AMOCO I SUSPECT HE SAYS THAT HALF THE PEOPLE IN THE EPA WATER OR AIR OFFICE THE PEOPLE DOING THE REGULATING THINK THEY'RE THE GOOD GUYS GOING AFTER THE BAD GUYS TO MEASURE AIR POLLUTION AMOCO DESIGNED TESTING METHODS WITH THE HELP OF ITS REGULATORY COLLEAGUES BUT THE METHODS NEEDED APPROVAL BY THE EPA'S AIR POLLUTION OFFICE IN NORTH CAROLINA AFTER SEVERAL TRIPS AND MANY CALLS TO THE OFFICE IN THE SPRING OF 1990 AMOCO'S MR KLEE STILL DIDN'T HAVE WHAT HE FELT WAS A DEFINITIVE RESPONSE FINALLY MR PODAR READING EPA TEA LEAVES SAID THAT THE AIR OFFICE'S NEUTRAL STANCE MEANT IT HAD NO OBJECTIONS IT WAS A RISKY SUPPOSITION BUT IT ALLOWED WORK TO CONTINUE SO THE GROUP BEGAN MEASURING POLLUTION FORTY WELLS WERE DRILLED TO TEST THE WATER ALL ABOUT THE GROUNDS A FEW MILES FROM WHERE BRITISH TROOPS SURRENDERED IN THE LAST MAJOR BATTLE OF THE REVOLUTIONARY WAR WHEN WINDS PREVENTED USING A CRANE TO PUT A TEST DEVICE ATOP A 130FOOT SMOKESTACK THEY BUILT 5000 OF SCAFFOLDING AROUND THE STACK DRILLED A HOLE IN THE SIDE AND INSERTED A SAMPLING PROBE THE DATA PROVED AMBIGUOUS AND THEY HAD TO DO IT AGAIN MONTHS LATER SCAFFOLDING AND ALL YORKTOWN'S MAIN POLLUTION PROBLEM IS BENZENE A CARCINOGENIC BYPRODUCT OF OIL REFINING FOR YEARS BENZENETAINTED WASTE WATER RAN INTO PIPES THAT LED TO AN OPENAIR TREATMENT FACILITY THOUGH LAWS PASSED IN 1977 SAID SUBSTANCES LIKE BENZENE NEEDED TO BE CONTROLLED IT WASN'T UNTIL 1990 THAT THE EPA WHICH SLOWED ITS RULEWRITING DURING THE REAGAN YEARS FINALLY DRAFTED SPECIFIC RULES TO CONTAIN BENZENE BASED ON THEM AMOCO IN 1990 BEGAN BUILDING A 41 MILLION ENCLOSED CANAL AND WATER TREATMENT SYSTEM THAT WOULD CAPTURE THE BENZENE VAPORS OTHER OIL REFINERIES ALSO HAD TO BUILD ONE BUT THE YORKTOWN PROJECT'S EXTENSIVE TESTING REVEALED THAT THE EPA'S BASIC ASSUMPTIONS IN REQUIRING SUCH A SYSTEMASSUMPTIONS BASED LARGELY ON A 1959 STUDY OF BENZENE EMISSIONS FROM POOLS OF DIRTY WATER KNOWN AS SEPARATORS WERE WRONG FOR THIS REFINERY FUMES AND EVAPORATION OF BENZENE FROM THE PLANT'S DIRTY WATER WAS IN FACT 20 TIMES LESS THAN THE 1959 STUDY PREDICTED IT WOULD BE THE REAL BENZENE PROBLEM WAS AT THE LOADING DOCKS WHERE FUEL IS PUMPED ONTO BARGES FUMES RELEASED HERE CARRY 16 MILLION POUNDS OF POLLUTANTS INTO THE ATMOSPHERE A YEAR THE STUDY FOUND THE EPA RULES DIDN'T ADDRESS LOADING DOCKS IT WAS LIKE MY GOD A BLIND PERSON COULD SEE THIS' SAYS AMOCO'S MS SPARKS RECALLING WHEN SHE FIRST HEARD ABOUT THE DATA THIS IS WHAT WE BELIEVED IN OUR HEARTS BUT NEVER HAD THE DATA TO DEMONSTRATE IN A WAY IT WAS ALSO WHAT SOME EPA PEOPLE WERE SECRETLY HOPING FOR EVIDENCE INDICTING THE CURRENT RIGID STRUCTURE OF CHECKLISTS AND OFTENOUTDATED ASSUMPTIONS WE DIDN'T KNOW AS MUCH AS WE THOUGHT WE KNEW ABOUT WHAT IS BEING RELEASED TO THE ENVIRONMENT SAYS THE EPA'S MR PODAR MADELINE GRULICH A VIRGINIA ENVIRONMENTAL OFFICIAL WHO WORKED WITH THE PROJECT SAYS THOSE WERE ASTONISHING CONCLUSIONS THAT THE WASTE WATER WAS NOT THE PROBLEM AND THAT THE LOADING DOCK WAS AT THE TIME LOADING DOCKS WEREN'T SOMETHING REGULATORS WERE EVEN LOOKING AT BY EARLY 1991 THE WORK GROUP WAS READY FOR A SHOW AND 120 PEOPLE FROM THE EPA AND AMOCO GATHERED AT THE WILLIAMSBURG INN IN VIRGINIA BUT A SMALL PROBLEM AROSE EPA'S PER DIEM EXPENSE LIMIT WAS SHORT OF WHAT A ROOM COSTS AT THE SUMPTUOUS COLONIAL INN IN AN ABERRANT MOMENT SAYS AMOCO'S MR KLEE I DECIDED WHY DON'T WE HAVE EPA PEOPLE AND AMOCO PEOPLE SHARE ROOMS STRANGE AS THE IDEA SEEMED TO SOME IT HELPED TO THAW THE COLD WAR DEBORAH HANLON OF THE EPA SAYS HER AMOCO ROOMIE TURNED OUT TO BE A REAL BLAST ONE NIGHT MS HANLON ROUNDED UP 10 AMOCO AND EPA PEOPLE TO GO DANCING AT A COUNTRY AND WESTERN BAR WHAT WAS SO EXCITING WAS NOT JUST THE CAMARADERIE SHE SAYS BUT IT WAS LIKE WE WERE ALL ON THE SAME TEAM AT ONE WORKSHOP DURING THE CONFERENCE PEOPLE HAD TO THINK ABOUT BEING A VEGETABLE THEN TELL THE GROUP WHAT VEGETABLE THEY WOULD BE ONE AMOCO EXECUTIVE WAS A CARROT BECAUSE MOST OF HIM WAS UNDERGROUND AND HE REVEALED LITTLE BY THE FINAL NIGHT MR KLEE SAYS THE EPA ATTITUDE SEEMED TO BE GEE YOU DON'T ALL HAVE HORNS THE AMOCO CONSENSUS WOW NOT EVERYBODY AT EPA WAS WALKING AROUND WITH A PAIR OF HANDCUFFS BUT SHORTLY AFTER THE CONFERENCE CAME AN EPISODE THAT SHOOK AMOCO'S FAITH THE EPA DESCRIBING A NATIONWIDE CRACKDOWN TO ENFORCE LEAD LAWS WITH PARTICULAR EMPHASIS ON HIGH BLOOD LEVELS IN CHILDREN HIT AMOCO'S YORKTOWN REFINERY WITH A 55 MILLION FINE VIRTUALLY EVERYONE FROM THE OIL COMPANY WORKING ON THE JOINT PROJECT AND A FEW PEOPLE FROM THE EPA CONTINGENT THOUGHT IT WAS RETRIBUTION FOR GETTING TOO COZY GORDON BINDER WHO WAS CHIEF OF STAFF TO THENEPA ADMINISTRATOR WILLIAM REILLY DOUBTS THAT AMOCO WAS TARGETED BUT IT RAISED A VERY REAL DILEMMA HE SAYS WHEN YOU'RE WORKING WITH INDUSTRY COOPERATIVELY SHOULDN'T YOU REWARD GOOD BEHAVIOR AT THE SAME TIME YOU'VE GOT YOUR ESTABLISHED PROCEDURES IN ANY EVENT THE CAREFULLY NURTURED TRUST HAD BEEN SHATTERED WITH THE PROJECT IN JEOPARDY MR REILLY PICKED UP THE PHONE AND IN A MOVE WITH VIRTUALLY NO PRECEDENT IN ENVIRONMENTAL REGULATION CALLED AMOCO'S CHAIRMAN H LAURANCE FULLER IN CHICAGO RECUSING HIMSELF FROM ANY FURTHER DEALINGS ON THE LEAD FINE MR REILLY SAID HE WAS SORRY AMOCO HADN'T RECEIVED ANY WARNING AND HOPED IT WOULDN'T PULL OUT OF THE YORKTOWN PROJECT ALTHOUGH THE CALL PATCHED UP A LOT THERE WAS AWKWARDNESS IN THE AIR AT THE WORK GROUP'S NEXT MEETING MS SPARKS SAYS IT WAS A LITTLE LIKE FINDING YOUR SPOUSE CHEATED ON YOU AND IT TAKES TIME TO GET OVER IT BUT AMOCO PEOPLE SEEING THAT THEIR EPA COUNTERPARTS WERE ALSO TROUBLED BY THE FINE GRUDGINGLY MOVED AHEAD WITH WORK ON THE COMMON GOAL OF SEEKING A WAY TO CUT THE LOADINGDOCK BENZENE RELEASES THE STUDY HAD UNCOVERED AND IN SEPTEMBER 1991 THE TEAM FINALLY BEGAN WRITING THE YORKTOWN PROJECT'S REPORT THEN EPA'S NORTH CAROLINA AIR OFFICE THE ONE THAT DIDN'T GIVE A DEFINITE ANSWER WHEN ASKED TO RULE ON THE APPROPRIATENESS OF THE TEST METHOD WEIGHED IN THEY TRIED TO SUBMARINE THE WHOLE THING SAYS A SENIOR EPA OFFICIAL IT WAS LUDICROUS THAT A MINUTE BEFORE MIDNIGHT THEY COMPLAINED ABOUT TECHNICAL PROBLEMS THEY COULD HAVE ADDRESSED MORE THAN A YEAR BEFORE WHEN MR KLEE HAD PRESSED THEM TO APPROVE THE TESTING PROCEDURES THE AIR OFFICE NOW SAID THAT THE TESTING METHODS WERE IMPROPER AND THAT THE CONCLUSIONS DRAWN FROM THAT DATA WERE TOO BROAD THE EPA'S MR PODAR WHO SAYS HIS BUDDHIST BELIEFS DON'T ALLOW HIM TO GET ANGRY SAYS SIMPLY THE AIR OBJECTIONS UNFORTUNATELY CAME LATER THAN I WOULD HAVE LIKED THE EPA'S ACTING ASSISTANT ADMINISTRATOR FOR THE AIR OFFICE MICHAEL SHAPIRO CONTENDS THE TARDINESS WASN'T SINISTER BUT MERELY BUREAUCRATIC REFLECTING THE EPA'S DIFFICULTY COORDINATING ITS VARIOUS OFFICES IN ANY CASE SENIOR EPA OFFICIALS ARRIVED TO ARBITRATE AFTER DIFFICULT NEGOTIATIONS THEY RULED THAT THE AIR OFFICE'S OBJECTIONS DIDN'T CHANGE THE FUNDAMENTAL FINDINGS BUT ONLY MODIFIED THEM IN SOME INSTANCES AND THE PROJECT SHOULD PROCEED EVEN WITH THAT THERE WAS FRUSTRATION AT AMOCO ARMED WITH STUDY DATA SHOWING THE WASTEWATER PLANT'S BENZENE EMISSIONS WERE ONLY A TINY FRACTION OF WHAT THE EPA HAD ASSUMED THEM TO BE THE COMPANY PETITIONED IN EARLY 1992 FOR AN EXEMPTION TO RULES REQUIRING IT TO COMPLETE ITS MASSIVE SEWER SYSTEM EPA SAID NO THERE WAS NO PROCEDURE TO WAIVE EXISTING ENVIRONMENTAL LAWS AND REGULATIONS EVEN IF THEY WERE CONTRADICTED BY AN EPASANCTIONED STUDY AS FOR THE LOADING AREA THAT THE STUDY HAD FINGERED AS A WORSE CULPRIT THE GROUP DECIDED THAT CONTROLLING ITS BENZENE FUMES WOULD TAKE A SPECIAL TWONOZZLE HOSE THE SECOND NOZZLE WOULD SUCK IN ESCAPING FUMES AND PIPES WOULD CARRY THEM AWAY COST OF THE SYSTEM ABOUT 6 MILLION THE GROUP ALSO AGREED THE REFINERY COULD STAND ABOUT 5 MILLION OF OTHER MODIFICATIONS LIKE NEW SMOKESTACKS EXTRA TANK SEALS AND COOLING EQUIPMENT FOR OPENAIR SLUDGE PONDS ONE YORKTOWN SLUDGE POND THE STUDY SHOWED EMITTED TWICE AS MUCH HYDROCARBONS AS THE EPA'S RULES ASSUMED THE LOWCOST SOLUTION LOWERING THE POND'S TEMPERATURES LATE LAST YEAR AMOCO COMPLETED ITS HIGHTECH WATERTREATMENT SYSTEM BUILDING THAT COSTLY FACILITY SOMETHING MANY OTHER REFINERIES HAVE HAD TO DO OVER THE PAST TWO YEARS BRINGS YORKTOWN CURRENT WITH ENVIRONMENTAL LAWS THE PLANT NOW CONTROLS THE MODEST OUTPUT OF BENZENE FUMES FROM ITS WASTE WATER FIVE TIMES THAT MUCH BENZENE STILL RISES FROM THE REFINERY'S DOCKS IT'S NOT REQUIRED TO BE CONTROLLED SO IT'S NOT SAYS CHRIS KLASING AN AMOCO MANAGER EPA OFFICIALS CONCEDE THE POINT THE YORKTOWN STUDY POINTS TO POTENTIAL OPPORTUNITIES FOR BETTER CHEAPER POLLUTION CONTROL SAYS THE AGENCY'S MR PODAR BUT WE MUST CONFIRM THEM BEFORE WE MAKE NATIONAL POLICY EPA OFFICIALS SAY NEW REGULATIONS TO CONTROL BENZENE AT LOADING DOCKS SHOULD BE DRAFTED BY THE MID1990S THE FINAL YORKTOWN REPORT IS NEARING COMPLETION THE VOLUMES DONE SO FAR MAKE THE BASIC ARGUMENT THAT EACH PLANT IS DIFFERENT AND EACH REQUIRES UNIQUE POLLUTION SOLUTIONS THEY SAY ONLY EXHAUSTIVE TESTING AT EACH PLANT WILL ACCURATELY TELL WHAT NEEDS TO BE CLEANED UP SHORT OF REWRITING LAWS LIKE THE CLEAN AIR ACT THERE IS LITTLE HOPE FOR IMMEDIATE FARREACHING CHANGE SUCH AS SETTING A BENZENE MAXIMUM AND LETTING A PLANT MEET THE GOAL ANY WAY IT WISHES IF YORKTOWN CUTS POLLUTION AT ITS LOADING DOCK OR THE EPA REQUIRES IT TO DO SO THAT DOESN'T MEAN THE AGENCY WOULD LET YORKTOWN OUT OF ANY REQUIREMENTS AT ITS WASTEWATER PLANT EVEN IF THEY WERE BASED ON FAULTY ASSUMPTIONS SAYS MR DAVIES YOU INVEST SO MUCH IN TERMS OF TIME MONEY AND POLITICAL CHITS IN ARRIVING AT ONE OF THESE REGULATORY DECISIONS THAT TO GO BACK AND CHANGE IT IS SOMETHING NOBODY WANTS TO DO STILL THERE ARE SIGNS THAT EPA REGULATION IS EVOLVING THE AIR WATER AND SOLIDWASTE OFFICES TALK MORE TO EACH OTHER AS YORKTOWN'S REPORT RECOMMENDS AND EPA ADMINISTRATOR BROWNER SAYS THE IDEA THAT ONE SOLUTION WORKS IN EVERY SITUATION IS SOMETHING WE'VE PROBABLY PASSED BEYOND AND WE NEED TO RECOGNIZE THAT WE NEED TO BECOME MORE FLEXIBLE AS THE RARE INDUSTRYAGENCY JOINT VENTURE WINDS DOWN MANY OF ITS PARTICIPANTS HAVE MOVED ON AMOCO'S HOWARD KLEE AND DEBORA SPARKS BOTH HAVE NEW ASSIGNMENTS AS DO THE EPA'S JIM LOUNSBURY AND MAHESH PODAR SUMMING UP HIS EXPERIENCE MR PODAR SAYS SOME OF MY COLLEAGUES MAY NOT AGREE BUT YORKTOWN SHOWS THAT EPA AND INDUSTRY CAN WORK TOGETHER YOU CAN FIND MORE EFFECTIVE WAYS TO MEET ENVIRONMENTAL OBJECTIVES MS SPARKS WHOSE SPOTTING OF MR LOUNSBURY ABOARD THE 1989 FLIGHT LED TO THE PROJECT EVEN FEELS A CERTAIN ENNUI AS IF A PRECIOUS UNION HAS ENDED YOU KNOW SHE SAYS QUIETLY I SHOULD CALL MAHESH AND JIM I HAVEN'T EVEN WISHED THEM A HAPPY NEW YEAR 9303290034 930329 PEPPERAND SALT BUT NEXT TO THE CAMCORDER FOR THOSE GIVEN TO EXTREMES ABSTINENCE IS EASIER THAN MODERATION 9303290033 930329 FOREIGN EXCHANGE CURRENCY PLAYERS IN CHANGE OF HEART AIM TO SEEK DOLLAR'S LOW AGAINST YEN BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK CURRENCY PLAYERS ARE GEARING UP TO SEE HOW LOW THEY CAN DRIVE THE DOLLAR AGAINST THE YEN FOR MANY THAT'S A CHANGE OF HEART A MONTH AGO PLAYERS EXPECTED THE YEN TO SOFTEN WHEN JAPAN'S FISCAL YEAR ENDED ONCE JAPANESE COMPANIES STOPPED TAKING PROFITS OVERSEAS TO BOLSTER BALANCE SHEETS THEY ARGUED THE FLOW OF ASSETS BACK TO JAPAN WOULD DRY UP AND THE YEN WOULD GIVE BACK AT LEAST SOME OF ITS GAINS BUT WITH JAPAN'S FISCAL YEAR ENDING WEDNESDAY TRADERS AND ANALYSTS NOW SEE THE DOLLAR SINKING TO NEW LOWS AGAINST THE YEN THIS WEEK OR NEXT SOME CALL FOR THE DOLLAR TO SINK TO 114 YEN A FEW EXPECT TO SEE THE US CURRENCY AT 110 YEN BUT NOT UNTIL MIDYEAR AT BEST THEY PREDICT THE DOLLAR WILL COAST ALONG TOWARD THE BOTTOM OF A 115118YEN RANGE THE DOLLAR'S POSTWORLD WAR II LOW WAS SET LAST TUESDAY AT 11510 YEN LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 11650 YEN DOWN FROM 11730 YEN THURSDAY THE DOLLAR WAS AT 16335 MARKS DOWN FROM 16423 MARKS THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 16282 MARKS AND AT 11654 YEN NOT ONLY HAVE YEN BEARS OVERESTIMATED THE IMPACT OF ASSET REPATRIATION ANALYSTS SAY BUT THEY'VE UNDERESTIMATED THE IMPACT OF JAPAN'S FORTHCOMING FISCAL STIMULUS PACKAGE AND ITS TRADE SURPLUS ALTHOUGH ASSET REPATRIATION HAS BOOSTED THE YEN IT HAS BEEN GOING ON FOR SO LONG THAT THE IMPACT HAS BEEN GRADUAL SAYS GEOFF HO A LONDONBASED PORTFOLIO OFFICER AT JOHN HANCOCK ADVISERS INTERNATIONAL WHO RUNS THE GROUP'S FREEDOM PACIFIC BASIN FUND WE HAVE SEEN QUITE A LARGE ELEMENT OF THAT ALREADY HE SAYS LAST MONTH'S SURGE WAS DUE PRIMARILY TO TRADERS' BELIEF THAT GOVERNMENTS WORLDWIDE FAVORED A STRONGER YEN AS A MEANS OF REDUCING JAPAN'S TRADE SURPLUS THE POLITICAL TALK HAS FADED BUT THE SURPLUS CONTINUES TO FAVOR THE YEN ECONOMISTS SAY JAPAN'S TRADE DATA FOR THE FIRST 20 DAYS OF MARCH DUE THURSDAY ARE LIKELY TO HELP THE YEN THIS WEEK SAYS CARL WEINBERG CHIEF ECONOMIST AT HIGH FREQUENCY ECONOMICS A NEW YORK ECONOMICSCONSULTING FIRM SEASONAL FACTORS AND DATA FOR THE FIRST 10 DAYS SUGGEST THEY'RE HEADED TOWARD A RECORD SURPLUS HE SAYS ADDING THAT COULD BE A YEN POSITIVE THE JAPANESE GOVERNMENT'S LATEST FISCAL STIMULUS PACKAGE ALSO SHOULD HELP THE YEN THE JAPANESE ECONOMY IS IN SUCH BAD SHAPE SAYS RICHARD TRAINER CHIEF ECONOMIST FOR THE BANK OF TOKYO NEW YORK IT'S LIKELY TO TURN AROUND SOONER WITH THIS STIMULUS PACKAGE AND WITH THE COMMITMENT OF JAPANESE POLITICIANS TO GETTING THE ECONOMY MOVING AGAIN THE PACKAGE WHICH INCLUDES PUBLIC WORKS SPENDING TAX CUTS AND TAX INCENTIVES COULD TOTAL 12 TRILLION YEN 103 BILLION OR MORE MR TRAINER SAYS THE ECONOMY SHOULD BEGIN TO FEEL THE IMPACT BY AUGUST AND FINANCING THE PACKAGE WILL DIVERT YEN FROM FOREIGN INVESTMENTS SAYS MR WEINBERG JAPANESE INSTITUTIONS WILL SEND LESS CAPITAL ABROAD HE SAYS THAT MEANS LESS YEN THROWN AT OFFSHORE MONEY AND MORE YEN AT HOME SOME FOREIGN MONEY MIGHT FIND ITS WAY TO JAPAN AS WELL JAPAN'S STOCK MARKET IS LIKELY TO BENEFIT FROM THE FISCAL BOOST SAYS JOHN HANCOCK'S MR HO PEOPLE HAVE MADE NICE PROFITS IN THE BOND MARKET AND THERE'S HOT MONEY SLOSHING ABOUT THAT COULD BE DIVERTED INTO THE STOCK MARKET HE SAYS ON FRIDAY THE NIKKEI INDEX CLOSED AT 1878870 UP FROM 1853717 AT THE END OF THE PREVIOUS WEEK RECENTLY MR HO SHIFTED 8 OF HIS 46 MILLION PORTFOLIO TO JAPAN AFTER OMITTING JAPAN ENTIRELY FOR NINE MONTHS BUT HE CAUTIONS THAT STOCK MARKET PLAYERS ARE DIVIDED ABOUT PROSPECTS FOR JAPANESE EQUITIES AND NOTES THAT CURRENT PRICES MAY ALREADY BE FACTORED IN THE FISCAL BOOST THE WILD CARD IN THE YEN OUTLOOK IS THE BANK OF JAPAN JAPANESE OFFICIALS SENSITIVE TO THE HARM A STRONG YEN DOES TO EXPORTS HAVE COMPLAINED IN RECENT WEEKS THAT THE YEN HAS ADVANCED TOO SHARPLY A SHARP SURGE IN THE YEN PROBABLY WOULD PROMPT A ROUND OF INTERVENTION ANALYSTS SAY THEY WILL TRY TO STOP IT GOING UP THAT STRONGLY SAYS MR HO BUT WHILE TRADERS HAVE BEEN SKITTISH ABOUT DRIVING THE DOLLAR BELOW 115 YEN THEY MAY BE GEARING UP FOR A TEST OF THE CENTRAL BANK'S POWER TO HALT THE DOLLAR'S SLIDE THE MARKETPLACE INTENDS TO SEE WHAT KIND OF METTLE THEY HAVE SAYS JERRY CORNILLE MARKETING DIRECTOR AT CM&M FUTURES INC CHICAGO THE FUTURES DIVISION OF CARROLL MCENTEE & MCGINLEY INC TRADERS MAY BE SKEPTICAL OF THE BANK OF JAPAN'S POWER TO SLOW THE YEN'S ADVANCE MR CORNILLE ADDS BECAUSE THEY KNOW OTHER GOVERNMENTS ARE HAPPY TO SEE THE YEN STRONGER WITHOUT THE HELP OF THE OTHER CENTRAL BANKS THE BANK OF JAPAN'S DETERMINATION TO DEFEND 115 YEN IS PROBABLY A HOLLOW THREAT HE SAYS 9303290032 930329 BUSINESS BRIEF WANG LABORATORIES INC AMERICAN STOCK EXCHANGE DECIDES NOT TO DELIST STOCK THE AMERICAN STOCK EXCHANGE REVERSING AN EARLIER DECISION SAID IT WON'T SUSPEND TRADING OF WANG LABORATORIES INC CLASS B AND CLASS C COMMON STOCK WANG WHICH RECENTLY FILED A REORGANIZATION PLAN UNDER WHICH IT WOULD EMERGE FROM BANKRUPTCY COURT PROCEEDINGS AS A MUCH SMALLER COMPANY FOCUSED ON SOFTWARE AND SERVICES WAS SCHEDULED TO BE DELISTED MARCH 31 JULES WINTERS CHIEF OPERATING OFFICER FOR THE STOCK EXCHANGE SAID THE DECISION WAS BASED ON RELATIVELY HIGHVOLUME TRADING OF THE STOCK BASICALLY THE INVESTOR INTEREST WAS THERE HE SAID THE STOCK EXCHANGE SAID IT CAUTIONS BROKERS AND PROSPECTIVE INVESTORS TO THOROUGHLY REVIEW WANG'S PUBLIC DISCLOSURES CONCERNING THE REORGANIZATION PLAN AND TO CAREFULLY CONSIDER THE MANY UNCERTAINTIES REGARDING THE VALUE OF WANG'S STOCK 9303290031 930329 BUSINESS BRIEF TOPS APPLIANCE CITY INC FOURTHPERIOD NET ROSE 18 BUT FIRSTPERIOD LOSS IS SEEN TOPS APPLIANCE CITY INC EDISON NJ SAID STRONG ELECTRONICS AND AUDIO SALES DROVE FOURTHQUARTER NET INCOME NEARLY 18 HIGHER BUT THE COMPANY WARNED THAT THE FIRST QUARTER WILL BE DISAPPOINTING AND IT EXPECTS TO RECORD A MODEST LOSS DUE TO THE EXTRAORDINARILY SEVERE WEATHER CONDITIONS IN ITS NORTHEASTERN US SALES AREA FOR THE FOURTH QUARTER THE HOME APPLIANCE AND CONSUMER ELECTRONICS RETAILER REPORTED PROFIT OF 39 MILLION COMPARED WITH 33 MILLION IN THE YEAREARLIER PERIOD REVENUE INCREASED 30 TO 1157 MILLION FROM 891 MILLION THE COMPANY DIDN'T PROVIDE PERSHARE DATA EXCEPT ON A PRO FORMA BASIS ON A PRO FORMA BASIS WHICH INCORPORATES COSTS AND PROCEEDS FROM THE COMPANY'S INITIAL PUBLIC OFFERING IN AUGUST NET INCOME ROSE 31 TO 4 MILLION OR 55 CENTS A SHARE FROM 3 MILLION OR 42 CENTS A SHARE FOR THE YEAR NET FELL 66 TO 18 MILLION FROM 53 MILLION REVENUE ROSE 145 TO 344 MILLION FROM 3003 MILLION ON A PRO FORMA BASIS NET ROSE 23 TO 69 MILLION OR 97 CENTS A SHARE FROM 56 MILLION OR 78 CENTS A SHARE 9303290030 930329 INTERNATIONAL WASHINGTON INSIGHT FUJIMORI'S SUPPORT FOR YELTSIN ACCENTS PROBLEM US FACES IN SUPPORTING PERU BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON OF ALL THE RECENT MESSAGES OF SUPPORT POURING IN FOR BORIS YELTSIN ONE OF THE LEAST FELICITOUS CAME FROM PERU'S PRESIDENT ALBERTO FUJIMORI MR FUJIMORI WHO LAST YEAR SEIZED EMERGENCY POWERS DISSOLVED PERU'S CONGRESS AND THEN HELD A NATIONAL VOTE TO RATIFY HIS ACTIONS WAS QUICK TO DRAW PARALLELS BETWEEN HIS OWN SITUATION AND THAT OF THE RUSSIAN LEADER HE ADVISED MR YELTSIN DON'T GO BACK AND HE SAID THE WORLD WOULD HAVE TO LEARN THAT DEMOCRACY MEANS MORE THAN MERE FORMALITIES LIKE CONSTITUTIONS AND PARLIAMENTS THAT IS PRECISELY THE LESSON THE CLINTON ADMINISTRATION DOESN'T WANT DRAWN FROM ITS SUPPORT FOR MR YELTSIN MR FUJIMORI'S AMBIGUOUS COMMITMENT TO DEMOCRACY RAISES DIFFICULT QUESTIONS FOR THE NEW US PRESIDENT SHOULD THE US INSIST ON STRICT ADHERENCE TO DEMOCRATIC NORMS OR SHOULD IT SHOW FLEXIBILITY TOWARD LEADERS WHO SEEM SUSCEPTIBLE TO WASHINGTON'S PERSUASION ESPECIALLY IF THEY APPEAR TO BE GENUINELY POPULAR AT HOME AND THE LESSER OF POSSIBLE EVILS PRESIDENT CLINTON WHO MADE SUPPORT FOR DEMOCRACY A CENTRAL THEME OF HIS CAMPAIGN HAS OPTED FOR FLEXIBILITY IN PERU'S CASE THE ADMINISTRATION FIRST BLOCKED A DEBTRESCHEDULING AND NEW INTERNATIONAL LENDING TO PERU BUT IT CLEARED THE WAY AFTER MR FUJIMORI TOOK TENTATIVE STEPS TO IMPROVE HIS GOVERNMENT'S HUMAN RIGHTS PERFORMANCE STILL THE ADMINISTRATION CONTINUES TO WITHHOLD ALL NONHUMANITARIAN AID TO PERU PENDING FURTHER PROGRESS JOE ELDRIDGE WASHINGTON DIRECTOR OF THE LAWYER'S COMMITTEE FOR HUMAN RIGHTS IS ENCOURAGED BY THE CLINTON ADMINISTRATION'S SUCCESSFUL EFFORT TO LINK INTERNATIONAL LENDING TO PERU'S HUMAN RIGHTS RECORD THE FACT THAT THIS IS THE FIRST TIME THAT THE INTERNATIONAL LENDERS USED HUMAN RIGHTS CRITERIA FOR LENDING IS SIGNIFICANT AND THEY DID THAT BECAUSE OF THE CLINTON ADMINISTRATION HE SAYS BUT I STILL WOULDN'T GIVE MR FUJIMORI THE BENEFIT OF THE DOUBT THE CLINTON ADMINISTRATION IS TAKING A GAMBLE WITH MR FUJIMORI CONCEDES ONE OFFICIAL THIS GUY ISN'T A JEFFERSONIAN DEMOCRAT BUT WE SEE SOME PROGRESS AND WE'RE WILLING TO SEE WHERE IT GOES HE SAYS MR FUJIMORI DOES APPEAR TO BE SUSCEPTIBLE TO PRESSURE HE SEEMED GENUINELY SURPRISED BY THE INTERNATIONAL CONDEMNATION THAT POURED OUT AFTER HE STAGED HIS AUTOGOLPE OR SELFCOUP LAST APRIL DISSOLVING THE CONGRESS PURGING THE COURTS AND SUSPENDING THE COUNTRY'S CONSTITUTION LIKE ALL DICTATORS MR FUJIMORI CLAIMED HIS ACTIONS WERE JUSTIFIED CITING THREATS POSED BY DRUG TRAFFICKERS AND A VICIOUS GUERRILLA INSURGENCY AND HE INSISTED HE HAD THE SUPPORT OF THE PERUVIAN PEOPLE BUT THEN MR FUJIMORI DID SOMETHING UNUSUAL FOR A WOULDBE DICTATOR BOWING TO INTERNATIONAL PRESSURES HE PUT HIS POPULARITY TO THE TEST HE HELD ELECTIONS LAST NOVEMBER FOR A NEW CONGRESS CHARGED WITH WRITING A NEW CONSTITUTION AND HE EVEN INVITED INTERNATIONAL OBSERVERS TO MONITOR THE VOTE WHILE THE ELECTIONS WERE MARRED ALL SIDES AGREED THAT MR FUJIMORI'S SUPPORTERS WON HANDILY EVEN BEFORE THAT VOTE MR FUJIMORI'S POPULARITY AT HOME AND HIS REPUTATION ABROAD WERE BUTTRESSED BY THE CAPTURE OF ABIMAEL GUZMAN THE LEADER OF PERU'S BRUTAL SHINING PATH GUERRILLAS STILL MR FUJIMORI HAS A LONG WAY TO GO BEFORE ANYONE EXCEPT MR FUJIMORI HIMSELF WOULD CALL HIM A DEMOCRAT THE POWERS OF THE NEW CONGRESS ARE CIRCUMSCRIBED AND ITS MEMBERS ARE CLEARLY COWED BY THE PRESIDENT THERE IS NO INDEPENDENT JUDICIARY AND NO DUE PROCESS THE COUNTRY'S HUMAN RIGHTS PERFORMANCE REMAINS ABYSMAL THE QUESTION NOW IS WHETHER MR FUJIMORI WILL PERMIT REAL DEMOCRATIC REFORMS IN EXCHANGE FOR INTERNATIONAL SUPPORT AND IF HE DOESN'T WILL THE CLINTON ADMINISTRATION PULL THE PLUG COLETTA YOUNGERS OF THE WASHINGTON OFFICE ON LATIN AMERICA A HUMAN RIGHTS ADVOCACY GROUP IS SATISFIED WITH THE NEW US ADMINISTRATION'S APPROACH SO FAR THIS ADMINISTRATION CLEARLY CARES ABOUT HUMAN RIGHTS AND THEY'VE BEEN SENDING THE RIGHT MESSAGE TO PERU SHE SAYS WHAT'S CRUCIAL IS THAT THEY NOW KEEP UP THE PRESSURE 9303290029 930329 ACCOUNTANTS SPOT PITFALLS IN CLINTON PLAN TAX PROPOSALS MAY SKEW CORPORATE RESULTS MAKE COMPARISONS DIFFICULT BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ACCOUNTANTS ARE WORRIED THAT PRESIDENT CLINTON'S TAX PROPOSALS WILL SKEW CORPORATE FINANCIAL RESULTS MAKING FINANCIAL COMPARISONS WITHIN AN INDUSTRY MORE DIFFICULT THE PRESIDENT'S INTENTION TO BOOST CORPORATE TAX RATES AND REINTRODUCE THE INVESTMENT TAX CREDIT WILL CREATE A MINEFIELD FOR FINANCIAL DISCLOSURE SAYS ROBERT WILLENS AN ACCOUNTANT AND TAX SPECIALIST AT AMERICAN EXPRESS CO'S SHEARSON LEHMAN SUBSIDIARY PAT MCCONNELL MANAGING DIRECTOR OF BEAR STEARNS & CO SAYS THAT TAX ACCOUNTING IS CONFUSING ENOUGH AND ADDING A NEW INVESTMENT TAX CREDIT COULD LEAD TO MORE CONFUSION BY ANALYSTS AND INVESTORS MS MCCONNELL AN ACCOUNTANT PUBLISHES AN ACCOUNTING NEWSLETTER FOR INSTITUTIONAL INVESTORS FOR THE BROKERAGE FIRM WHILE THERE ISN'T MUCH CURRENT SUPPORT IN CONGRESS FOR THE INVESTMENT TAX CREDIT AND SOME SMALL BUSINESSES WOULD PREFER OTHER INCENTIVES THE CREDIT REMAINS A KEY PART OF CLINTON'S ENTIRE ECONOMIC STIMULUS PACKAGE DETAILS OF WHICH WILL BE VOTED ON IN CONGRESS IN ENSUING WEEKS IF THE PRESIDENT'S PROPOSED TAX BOOST AND THE CREDIT ARE ENACTED ACCOUNTANTS SAY THERE ARE TWO MAJOR REASONS THEY WILL SKEW THE FINANCIAL RESULTS OF COMPANIES IN THE SAME INDUSTRY MAKING FINANCIAL COMPARISONS MORE DIFFICULT A RECENT NEW RULE ON ACCOUNTING FOR INCOME TAXES FORCES COMPANIES TO CHANGE THEIR BOTTOM LINES EVERY TIME THE TAX RATE CHANGES PRESIDENT CLINTON PROPOSED TO BOOST THE CORPORATE TAX RATE TO 36 FROM 34 WHILE THE INVESTMENT TAX CREDIT WAS REPEALED SIX YEARS AGO IT IS STILL BEING EMPLOYED BY MANY COMPANIES THAT DEFERRED THE EFFECTS OF THE CREDIT OVER FUTURE YEARS IN 1971 CONGRESS PASSED AN UNUSUAL BILL PERMITTING COMPANIES EITHER TO SPREAD THE CREDIT OVER THE LIFE OF THE ASSET OR USE IT IMMEDIATELY IT WAS THE ONLY TIME THAT CONGRESS OVERRULED ACCOUNTANTS AND REGULATORS WHO WANTED ALL COMPANIES TO SPREAD THE CREDIT'S BENEFITS PROVIDING FOR UNIFORM DISCLOSURE TO INVESTORS AND FINANCIAL ANALSYTS THE DUAL ACCOUNTING TREATMENT WAS ALSO ELIMINATED BY CONGRESS IN 1986 SINCE COMPANIES CAN EITHER USE THE CREDIT TO BOOST PROFIT IMMEDIATELY OR SPREAD IT OVER THE LIFE OF THE ASSET FOR WHICH THE CREDIT IS ISSUED COMPARISONS OF COMPANIES IN THE SAME INDUSTRY THAT APPLY THE CREDIT DIFFERENTLY ARE DIFFICULT FOR EXAMPLE GENERAL MOTORS CORP SPREADS THE CREDIT OVER THE LIFE OF ITS ASSETS WHILE FORD MOTOR CO EXCEPT FOR ITS FINANCE SUBSIDIARY HAS APPLIED THE CREDIT IMMEDIATELY STEPHEN A ZEFF AN ACCOUNTING PROFESSOR AT RICE UNIVERSITY'S JONES GRADUATE SCHOOL OF ADMINISTRATION IN HOUSTON URGES THE FINANCIAL ACCOUNTING STANDARDS BOARD THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS TO TRY TO CLOSE THE LOOPHOLE PERMITTING COMPANIES TO REPORT THE INVESTMENT TAX CREDIT DIFFERENTLY IT WOULD BE HIGHLY DESIRABLE IF WE COULD CLOSE THE BOOK ON FLOWTHROUGH ACCOUNTING WHICH PERMIT USE OF THE CREDIT IMMEDIATELY PROF ZEFF SAYS IT HAS BEEN AN EMBARRASSMENT THAT CONGRESS DICTATED AN ACCOUNTING STANDARD OVER THE HEADS OF REGULATORS AND ACCOUNTING STANDARDSETTERS IN 1971 PROF ZEFF SAYS IT IS IN THE INTEREST OF INVESTORS AND CREDITORS WHO DEPEND ON THE USEFULNESS AND CREDIBILITY OF FINANCIAL REPORTING THAT FASB USE ITS RESOURCES TO PERSUADE CONGRESS TO MAKE THE ACCOUNTING TREATMENT OF THE CREDIT UNIFORM HE ADDS TIMOTHY LUCAS FASB'S RESEARCH DIRECTOR AGREES WITH PROF ZEFF THAT TWO CHOICES FOR ACCOUNTING ARE CONFUSING TO THE FINANCIALSTATEMENT USER AND SAYS THAT IT IS BEST TO AVOID HAVING ACCOUNTING STANDARDS SET IN LEGISLATION THE PRESIDENT'S PROPOSED BOOST IN CORPORATE TAX RATES COULD AFFECT CORPORATE PROFITS SIGNIFICANTLY BY FORCING SOME COMPANIES TO RESERVE MORE AND OTHERS LESS FOR FUTURE TAX LIABILITIES DEPENDING ON THEIR TAXCREDIT HISTORY FOR EXAMPLE NORTHROP CORP REPORTED 2008 MILLION IN PROFIT FOR 1991 UNDER A 34 TAX RATE WITH THE NEW ACCOUNTING RULE ON INCOME TAXES AND IF THE TAX RATE WERE BOOSTED TO 36 NORTHROP'S REPORTED PROFIT WOULD HAVE BEEN REDUCED BY 334 MILLION TO 1674 MILLION MS MCCONNELL SAYS MR WILLENS SAYS THAT IF THE CORPORATE TAX RATE HAD ALREADY BEEN BOOSTED TO 36 SEVERAL COMPANIES INCLUDING PARAMOUNT COMMUNICATIONS INC HJ HEINZ CO AND CAESARS WORLD INC WOULD HAVE HAD THEIR BOTTOM LINES SHARPLY CHANGED HEINZ HAD ALREADY ADOPTED THE ACCOUNTING RULE BEFORE ISSUING ITS FINANCIAL RESULTS LAST YEAR WHILE PARAMOUNT AND CAESARS' HAVEN'T YET ADOPTED THE RULE THE RULE MUST BE ADOPTED STARTING WITH 1993 ANNUAL REPORTS ACCORDING TO MR WILLENS'S CALCULATIONS PARAMOUNT'S PROFIT OF 261 MILLION FOR THE YEAR ENDED LAST OCT 31 WOULD HAVE DROPPED TO 236 MILLION UNDER THE ACCOUNTING RULE BUT PARAMOUNT'S NET WOULD ONLY HAVE DECLINED TO 242 MILLION IF CLINTON HAD BOOSTED THE TAX RATE AFTER ADOPTING THE ACCOUNTING RULE HEINZ REPORTED PROFIT OF 638 MILLION FOR THE YEAR ENDED APRIL 29 1992 UNDER THE PROPOSED NEW TAX RATE HEINZ'S NET WOULD HAVE DROPPED BY 9 MILLION TO 629 MILLION AND CAESARS' NET OF 66 MILLION WOULD HAVE SLIPPED TO 538 MILLION UNDER THE ACCOUNTING RULE BUT WOULD HAVE ONLY BEEN REDUCED TO 558 MILLION IF CLINTON'S TAX BOOST HAD BEEN MADE UNDER THE NEW ACCOUNTING RULE WHEN TAX RATES ARE BOOSTED PROFITS OF COMPANIES WITH FUTURE TAX DEDUCTIONS AND NET LOSS CARRYFORWARDS GENERALLY RISE WHILE PROFITS OF COMPANIES THAT DEFER SOME TAX PAYMENTS TO THE FUTURE GENERALLY DECLINE NOTES MS MCCONNELL THE DISCLOSURE PICTURE IS QUITE CONFUSING AND A TAX BOOST WILL ONLY MAKE IT MORE SO SHE SAYS 9303290028 930329 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED SEVEN NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS AND THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 12 NEW LISTINGS INCLUDING SEVEN INITIAL PUBLIC OFFERINGS THE BIG BOARD LISTED THE FOLLOWING INITIAL PUBLIC OFFERINGS ACE LTD HAMILTON VA A PROVIDER OF HIGHLEVEL LIABILITY INSURANCE TO CORPORATIONS UNDER ACL BANKERS LIFE HOLDINGS CORP CHICAGO A HEALTH INSURANCE CONCERN UNDER BLH LIFE PARTNERS GROUP INC ENGLEWOOD COLO A PROVIDER OF UNIVERSAL LIFE INSURANCE AND ANNUITIES UNDER LPG AND NATIONAL STEEL CORP MISHAWAKA IND A MAKER AND SELLER OF FLAT ROLLED CARBON STEEL UNDER NB THE FOLLOWING NEW BIG BOARD LISTINGS FORMERLY TRADED IN THE OVERTHECOUNTER MARKET MERCANTILE BANCORP ST LOUIS A MULTIBANK HOLDING COMPANY UNDER MTL FREMONT GENERAL CORP SANTA MONICA CALIF AN INSURANCE AND FINANCIAL SERVICES HOLDING COMPANY UNDER FMT CORIMON SA CARACAS VENEZUALA A HOLDING COMPANY WITH INTERESTS IN PAINTS AND ROOFING MATERIALS CHEMICALS PACKAGING AND INKS AND FOOD PRODUCTS TRADING AS AMERICAN DEPOSITARY RECEIPTS UNDER CRM PREFERRED HEALTH CARE LTD WILTON CONN A MANAGEDCARE SERVICES PROVIDER SPECIALIZING IN MENTAL HEALTH AND SUBSTANCE ABUSE CARE MOVES TO NASDAQ NATIONAL MARKET SYSTEM UNDER PHCC IT PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE THE FOLLOWING COMPANIES FORMERLY TRADED ON THE NASDAQ SMALL CAP MARKET AND WERE APPROVED FOR THE NATIONAL MARKET SYSTEM SUPREMA SPECIALTIES INC PATERSON NJ A MAKER AND MARKETER OF PREMIUM NATURAL CHEESE PRODUCTS UNDER CHEZ BKC SUPERCONDUCTORS LAWRENCE MASS A DESIGNER MANUFACTURER AND MAKER OF SEMICONDUCTOR DEVICES UNDER BKCS THE FOLLOWING COMPANY PREVIOUSLY TRADED ON THE PINK SHEETS AND WAS APPROVED FOR DESIGNATION ON THE NATIONAL MARKET FIRST FEDERAL SAVINGS BANK OF BRUNSWICK GA A FEDERAL SAVINGS BANK UNDER FFBG THE FOLLOWING COMPANY IS THE RESULT OF THE DISTRIBUTION OF THE OUTSTANDING COMMON STOCK OF A UNIT OF BALL CORP AND BEGAN TRADING ON THE NATIONAL MARKET ALLTRISTA CORP MUNCIE IND OWNER OF THE ASSETS AND LIABILITIES OF THE FOOD CONTAINER AND METAL PRODUCT SEGMENTS PREVIOUSLY OWNED BY BALL CORP UNDER JARSV CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS TODAY ON CALLAWAY GOLF CO CARLSBAD CALIF A MAKER AND MARKETER OF GOLF EQUIPMENT THE PACIFIC STOCK EXCHANGE BEGAN TRADING SHARES IN ZONAGEN INC THE WOODLANDS TEXAS A DEVELOPER OF PRODUCTS RELATED TO THE FEMALE REPRODUCTIVE SYSTEM INCLUDING CONTRACEPTIVES UNDER ZNGP 9303290027 930329 FED POLICY MAKERS VOTED STEADY RATES IN EARLY FEBRUARY BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE POLICY MAKERS STILL UNSURE WHAT TO MAKE OF THE SHRINKING MONEY SUPPLY DECIDED UNANIMOUSLY TO HOLD SHORTTERM INTEREST RATES STEADY AT THEIR MEETING IN EARLY FEBRUARY THE FED DISCLOSED WITH THE ECONOMY STRENGTHENING DESPITE THE SLUGGISHNESS OF THE MOST IMPORTANT MONEYSUPPLY MEASURE THE FED SAID IT WOULD NEED TO CONTINUE TO EVALUATE MONETARY GROWTH DEVELOPMENTS IN THE CONTEXT OF OTHER FINANCIAL ECONOMIC AND PRICE DEVELOPMENTS ACCORDING TO A SUMMARY OF THE FEB 2 AND 3 MEETING OF THE FED'S POLICYMAKING OPENMARKET COMMITTEE SO FAR THIS YEAR THE M2 MEASURE OF THE MONEY SUPPLY CURRENCY CHECKING ACCOUNTS AND SOME CERTIFICATES OF DEPOSITS HAS DECREASED AT A 2 ANNUAL RATE FED POLICY MAKERS VOTED UNANIMOUSLY IN FEBRUARY TO INCREASE M2 BETWEEN 2 AND 6 THIS YEAR THE SUMMARY SHOWS THAT SOME POLICY MAKERS WANTED A HIGHER TARGET AND OTHERS A LOWER TARGET SOME WANTED A NARROWER RANGE WHILE OTHERS SOUGHT A WIDER RANGE THE SUMMARY REPORTED CONCERN ABOUT THE PERSISTING WEAKNESS IN THE MONEY SUPPLY BUT ADDED THAT THE UNCERTAINTIES SURROUNDING THE BEHAVIOR OF THESE AGGREGATES TENDED TO REDUCE THEIR ROLE IN CURRENT MONETARY POLICY THE FED ALSO DISCLOSED THAT IN RESPONSE TO CONGRESSIONAL CRITICISM IT FORMED A COMMITTEE TO CONSIDER QUICKER AND MORE DETAILED RELEASE OF INFORMATION ABOUT ITS POLICY MEETINGS BUT THE FED HASN'T MADE ANY SIGNIFICANT CHANGES AND IT ISN'T LIKELY TO DO SO THE FED CURRENTLY RELEASES A SUMMARY OF ITS DELIBERATIONS AFTER A LAG OF ABOUT SIX WEEKS EARLIER RELEASE SOME FED OFFICIALS SAID MIGHT HAVE THE EFFECT IN DIFFICULT CIRCUMSTANCES OF REDUCING THE FED'S WILLINGNESS TO MAKE NEEDED POLICY ADJUSTMENTS PROMPTLY AND MAKING MORE DETAILED PUBLIC DISCLOSURE MIGHT LIMIT THE AVAILABILITY OF CONFIDENTIAL INFORMATION FED OFFICIALS SAID THE OPEN MARKET COMMITTEE MET AGAIN LAST WEEK AND AGAIN DECIDED AGAINST ANY IMMEDIATE CHANGE IN INTEREST RATES BUT DETAILS OF THAT MEETING WON'T BE RELEASED UNTIL LATE MAY THE FED HASN'T MADE AN INTERESTRATE MOVE SINCE SEPTEMBER 9303290026 930329 WHO'S NEWS NORTH AMERICAN VACCINE INC NORTH AMERICAN VACCINE INC BELTSVILLE MD THE DEVELOPER OF VACCINES TO PREVENT HUMAN INFECTIOUS DISEASES NAMED THREE PEOPLE TO NEWLY CREATED POSITIONS THE COMPANY NAMED TITO UBERTINI 53 YEARS OLD VICE PRESIDENT VIRAL VACCINES EDWARD LEWIN 52 VICE PRESIDENT MEDICAL AFFAIRS AND WENLII LIN 53 VICE PRESIDENT TECHNICAL AFFAIRS MR UBERTINI JOINED THE COMPANY IN JANUARY AS DIRECTOR OF VIRAL VACCINES PREVIOUSLY HE WAS A TECHNICAL DIRECTOR AT SCLAVO SPA AN ITALIAN VACCINE MANUFACTURER JOINTLY OWNED BY CHIRON CORP AND CIBAGEIGY LTD MR LEWIN ALSO JOINED IN JANUARY AS DIRECTOR OF MEDICAL AFFAIRS PREVIOUSLY HE WAS ASSOCIATE CLINICAL PROFESSOR OF PEDIATRICS AND COMMUNICABLE DISEASES AT THE UNIVERSTIY OF MICHIGAN SCHOOL OF MEDICINE MR LIN PREVIOUSLY WAS VICE PRESIDENT MANUFACTURING FOR NORTH AMERICAN VACCINE 9303290025 930329 SWEDISH OUTPUT DECLINES STOCKHOLM SWEDEN'S GROSS DOMESTIC PRODUCT DECLINED A PRELIMINARY 17 IN 1992 COMPARED WITH 1991 AFTER A SHARP FALL IN THE LATEST QUARTER OF THE YEAR NATIONAL STATISTICS AGENCY SCB SAID THE AGENCY SAID GDP CONTRACTED 36 IN THE FOURTH QUARTER OF 1992 FROM THE YEAREARLIER QUARTER THE DROP FOLLOWED DECLINES OF 04 IN THE THIRD QUARTER AND DROPS OF 08 AND 24 IN THE SECOND AND FIRST QUARTERS 9303290024 930329 FRENCH ELECTION TESTS ECUS FARM TRADE PACT COALITION ELECTED IS CRITICAL OF AGRICULTURE POLICY FIRST TEST IS IN OILSEEDS BY JULIE WOLF SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY'S AGRICULTURE COMMISSIONER RENE STEICHEN IS ABOUT TO TAKE ON THE NEW FRENCH GOVERNMENT OVER THE EC'S FARM TRADE PACT WITH THE US DESPITE TOUGH WORDS FROM RIGHTWING LEADERS IN PARIS MR STEICHEN IS CONFIDENT OF VICTORY DURING THE CLOSING DAYS OF THE FRENCH ELECTION CAMPAIGN POLITICIANS ON ALL SIDES OF THE SPECTRUM DIDN'T MINCE WORDS IN ATTACKING THE FARM TRADE PACT KNOWN AS THE BLAIR HOUSE ACCORD THE GAULLIST RPR WHICH WILL TAKE A LEADING ROLE IN THE CENTERRIGHT COALITION ELECTED YESTERDAY IS THE MOST OUTSPOKEN RPR LEADER JACQUES CHIRAC EVEN CHALLENGED THE EC COMMISSION'S LONGESTABLISHED ROLE IN NEGOTIATING INTERNATIONAL TRADE AGREEMENTS COMPLAINING ABOUT THE FOREIGN COMMISSIONERS WHO CONCLUDED THE ECUS ACCORD BUT MR STEICHEN A LOWKEY FORMER AGRICULTURE MINISTER WHO BECAME LUXEMBOURG'S EC COMMISSIONER IN JANUARY VIEWS MUCH OF THIS AS PAR FOR THE COURSE DURING A FRENCH ELECTION CAMPAIGN HE SAYS MR CHIRAC HAS BEEN KNOWN TO CHANGE HIS MIND ONCE IN OFFICE POINTING TO THE MID1980S WHEN MR CHIRAC CAMPAIGNED AGAINST THE TERMS FOR SPANISH MEMBERSHIP IN THE EC MR CHIRAC WENT ON TO SERVE AS PRIME MINISTER IN THE GOVERNMENT THAT COHABITED WITH SOCIALIST PRESIDENT FRANCOIS MITTERRAND IN 198688 HE MR CHIRAC SAID THAT WHEN WE COME TO THE GOVERNMENT WE WILL CHANGE ALL THIS BUT HE DIDN'T CHANGE A WORD IN THE TREATY MR STEICHEN SAID A TEST OF MR CHIRAC'S INTENTIONS IS LIKELY TO COME SOON BECAUSE MR STEICHEN IS PRESSING FOR AN EARLY ADOPTION BY EC MINISTERS OF ONE OF THE AGREEMENTS REACHED AT BLAIR HOUSE IN WASHINGTON THE ONE TO LIMIT EC SUBSIDIES TO OILSEED FARMERS LIMITS ON SUBSIDIZED AGRICULTURAL EXPORTS WHICH WERE ALSO AGREED TO AT BLAIR HOUSE WILL BE PUT TO A VOTE ONLY AS PART OF AN OVERALL AGREEMENT IN THE URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH IS MONTHS AWAY ADVOCATES IN EUROPE OF THE OILSEED LIMIT FEAR THAT A LONG DELAY IN EC ADOPTION COULD STRENGTHEN THE HAND OF US OPPONENTS OF THE DEAL MOST NOTABLY SOYBEAN FARMERS IF THE OILSEED PACT COLLAPSES THE EC WHOSE SUBSIDIES TO OILSEEDS SUCH AS RAPE SUNFLOWER AND SOYBEANS HAVE TWICE BEEN CONDEMNED BY GATT FACES PUNITIVE US TARIFFS ON EXPORTS INCLUDING FRENCH WINE UNDER EC RULES THE OILSEED DEAL IS SUBJECT TO WEIGHTED MAJORITY VOTING AND MOST EC COUNTRIES SUPPORT THE ACCORD ENOUGH TO BE PREPARED TO OUTVOTE THE FRENCH BUT FRANCE HAS THREATENED TO INVOKE THE LUXEMBOURG COMPROMISE WHICH ALLOWS A COUNTRY TO IMPOSE A VETO ON THE GROUNDS OF VITAL NATIONAL INTEREST MR STEICHEN SEEMS CONVINCED IT WON'T COME TO THAT I DON'T THINK THEY CAN DO THIS HE SAYS THE LUXEMBOURG COMPROMISE IS A SOCALLED PROCEDURE THAT WAS ADOPTED IN 1965 THAT'S 28 YEARS AGO I THINK THE COMMUNITY HAS HAD AN EVOLUTION SINCE THEN AND I THINK IT'S A PROCEDURE THAT ISN'T UP TO DATE ANYMORE THE FRENCH GOVERNMENT AND THE FRENCH PEOPLE THAT ARE COMING TO THE GOVERNMENT NOW THEY WERE IN FAVOR OF MAASTRICHT AND THEY VOTED FOR MAASTRICHT MR STEICHEN SAYS IN PRIVATE THE FRENCH AGREE THAT IT THE OILSEED PACT WAS A GOOD AGREEMENT HE ADDS TALKING WITH WASHINGTON IN ADDITION TO FENDING OFF FRENCH OPPOSITION MR STEICHEN IS TELLING WASHINGTON NOT TO RENEGE ON THE OILSEED AGREEMENT WHICH WAS CONCLUDED TOWARD THE END OF THE BUSH ADMINISTRATION MR STEICHEN WHO WILL MEET US TRADE REPRESENTATIVE MICKEY KANTOR FOR THE FIRST TIME TOMORROW HAS SENT A MESSAGE TO THE CLINTON ADMINISTRATION THAT REPUDIATING ANY PART OF THE BLAIR HOUSE ACCORD WOULD BE A BIG MISTAKE I'VE SAID IT ALREADY TO THE AMERICANS I'M SURE WE WON'T GET A MAJORITY AMONG EC MINISTERS FOR CHANGING THE DEAL HE SAYS MOREOVER TOUGH TACTICS BY THE US ON OTHER TRANSATLANTIC TRADE DISPUTES OR IN THE GATT NEGOTIATIONS COULD UNDERMINE SUPPORT WITHIN THE EC FOR CONCESSIONS MADE BY THE COMMUNITY IN THE BLAIR HOUSE AGREEMENT MR STEICHEN WARNS ONCE MR STEICHEN GETS OVER HIS FIRST HURDLE ON OILSEEDS HE WILL HAVE TO ENSURE THAT THE MUCHTRUMPETED CHANGES IN THE EC'S COSTLY COMMON AGRICULTURAL POLICY REALLY DO REDUCE EC FOOD MOUNTAINS AND BRING PRICES IN THE COMMUNITY CLOSER TO THOSE ON WORLD MARKETS WITHOUT RAISING FARM SPENDING MR STEICHEN BELIEVES THE COMMUNITY WILL BE ABLE TO RESPECT ITS CEILING ON AGRICULTURAL EXPENDITURE AS LONG AS THERE ARE NO MAJOR CHANGES IN THE PARITIES OF EC CURRENCIES TURBULENCE IN THE EUROPEAN MONETARY SYSTEM LAST YEAR WAS THE MAIN FACTOR IN AN UNEXPECTED ADDITIONAL 188 BILLION EUROPEAN CURRENCY UNITS 222 BILLION IN THE EC'S 34 BILLIONECU FARM BUDGET BECAUSE COMPENSATION WAS PAID TO FARMERS TO SHIELD THEM FROM THE EFFECTS OF PARITY CHANGES MR STEICHEN POINTS OUT THAT AT THE EC SUMMIT IN EDINBURGH SCOTLAND COMMISSION PRESIDENT JACQUES DELORS SUCCEEDED IN GETTING EC LEADERS TO AGREE THAT BUDGETARY LIMITS FOR AGRICULTURE COULD BE EXCEEDED IN THE EVENT OF MONETARY TURBULENCE CRITICS OF THE CAP OVERHAUL CONTEND THAT IT IS OVERLY BUREAUCRATIC AND THUS OPEN TO FRAUD SOME SAY THAT THE COMMISSION'S FORECASTS ARE TOO OPTIMISTIC AND THAT THE CHANGES WON'T DELIVER BIG ENOUGH CUTS IN PRODUCTION ACCORDING TO SOME COMMISSION OFFICIALS MR STEICHEN'S LOWKEY STYLE WHICH CONTRASTS SHARPLY WITH THAT OF HIS PREDECESSOR IN THE JOB RAY MACSHARRY MAKES HIM THE RIGHT PERSON TO PERSUADE MEMBER STATES TO DELIVER ON CAP BUT SOME IMPORTANT SECTORS ESPECIALLY SUGAR WERE LEFT OUT OF MR MACSHARRY'S PLANS AND CHANGES WILL HAVE TO BE PUSHED THROUGH BY MR STEICHEN A CLASH WITH FRANCE OVER OILSEEDS COULD BE ONLY THE FIRST TEST OF HIS METTLE 9303290023 930329 ENTERPRISE SOME SUPPLIERS RETHINK THEIR RELIANCE ON BIG BUSINESS PRESSURE IS FELT MOST BY SMALL COMPANIES THAT HAVE ONE GIANT CLIENT BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL SMALL SUPPLIERS ARE REDUCING THEIR RELIANCE ON LARGE CORPORATIONS AS THE RELIABILITY OF THESE ONCEPRIZED CUSTOMERS DECLINES THE RESTRUCTURING OF GENERAL MOTORS CORP INTERNATIONAL BUSINESS MACHINES CORP AND OTHER HUGE FIRMS TO IMPROVE THEIR COMPETITIVENESS HAS SCARED TENS OF THOUSANDS OF SMALL CONCERNS THAT COUNT ON THE GIANTS FOR MUCH OF THEIR BUSINESS SUDDENLY SOME OF THESE COMPANIES ARE REDUCING ORDERS OR CANCELING THEM OTHERS ARE PLACING TOUGH NEW CONDITIONS ON SUPPLIERS INCLUDING CUTTING PRICES AND REQUIRING COSTLY MEASURES TO INCREASE SPEED AND QUALITY LARGE SUPPLIERS COMMONLY HAVE THE RESOURCES AND BROAD CUSTOMER BASE TO ABSORB SUCH CHANGES BUT THE RISING UNPREDICTABILITY OF LARGE CUSTOMERS CAN THREATEN THE SURVIVAL OF A SMALLER FIRM AS A RESULT SMALL SUPPLIERS ARE REEVALUATING DOING BUSINESS WITH THE FORTUNE 500 SAYS ALEXANDER GUTHRIE PRESIDENT AND COOWNER OF DAVIS ELECTRIC WALLINGFORD CORP A SMALL MAKER OF WIRE CABLE AND FIBEROPTIC MACHINERY YOU CANNOT RELY ON THESE MAJOR CUSTOMERS FOR CONSISTENT BUSINESS ANY MORE THE WALLINGFORD CONN CONCERN LAST YEAR SUFFERED A HUGE DROP IN ORDERS FROM AMERICAN TELEPHONE & TELEGRAPH CO MR GUTHRIE SAYS WHILE AT&T USED TO ACCOUNT FOR AS MUCH AS 20 OF THE COMPANY'S 8 MILLION TO 10 MILLION IN ANNUAL SALES THE TELECOMMUNICATIONS GIANT'S ORDERS IN 1992 FELL TO ONETENTH THEIR PREVIOUS LEVEL HE SAYS THE ERRATIC NATURE OF ORDERS FROM SUCH BIG CUSTOMERS FORCED US TO SPREAD OUR BUSINESS AROUND SAYS MR GUTHRIE HE SAYS THE COMPANY HAS INCREASED RESEARCH SPENDING 25 SINCE 1991 TO DEVELOP PRODUCTS THAT WILL HELP IT ATTRACT SMALLER GROWING CUSTOMERS THE COOWNER OF A SMALL AEROSPACEINDUSTRY SUPPLIER THAT DERIVES TWOTHIRDS OF ITS SALES FROM BOEING CO SAYS HIS FIRM ALSO IS SEEKING TO DIVERSIFY ITS CUSTOMER BASE PRESSURE FROM BOEING TO REDUCE PRICES HAS GOTTEN WORSE IN THE PAST COUPLE OF YEARS HE SAYS REQUESTING ANONYMITY THEY HAVEN'T LEARNED TO CUT COSTS INTERNALLY SO THEY'RE BEATING UP ON THE VENDORS TO COPE WE'RE LOOKING FOR NEW CUSTOMERS WHEREVER WE CAN HE SAYS EUGENE MANNO CHAIRMAN AND PRESIDENT OF ARIX CORP HAS TAKEN MORE DRASTIC ACTION HIS SUNNYVALE CALIF MAKER OF COMPUTER SYSTEMS ONCE COUNTED ON UNISYS CORP FOR THREEQUARTERS OF ITS 85 MILLION IN ANNUAL SALES BUT IN 1991 MR MANNO SAYS UNISYS BOUGHT AN ARIX COMPETITOR CANCELED ITS ORDERS AND DUMPED US A YEAR LATER ARIX FILED FOR COURT PROTECTION FROM ITS CREDITORS HE SAYS A UNISYS SPOKESMAN SAYS THE COMPANY DROPPED ARIX AS A SUPPLIER BECAUSE OF A STRATEGIC DECISION TO SWITCH TO COMPUTERS WITH INTEL CORP MICROCHIPS ARIX PRODUCTS USED MOTOROLA MICROCHIPS IN SOME INDUSTRIES SUCH DISCONTENT APPEARS TO BE WIDESPREAD MORE THAN HALF OF 154 AUTOINDUSTRY SUPPLIERS SAY GM'S COSTCUTTING REORGANIZATION WAS UNFAVORABLE TO THEM ACCORDING TO A SURVEY LAST YEAR BY WARD'S AUTO WORLD A TRADE PUBLICATION COMPANIES ARE ATTEMPTING TO CUT THEIR BUSINESS BASE WITH GM BECAUSE THEY DON'T KNOW IF THE CONTRACTS THEY GET ARE FIRM OR NOT SAYS THOMAS THOMPSON A SAGINAW MICH MANUFACTURERS REPRESENTATIVE HE SAYS ONEQUARTER OF HIS CLIENTS ARE TRYING TO REDUCE THEIR RELIANCE ON THE COUNTRY'S BIGGEST AUTO MAKER SMALL BUSINESS ACCOUNTS FOR MORE THAN ONEQUARTER OF THE SUPPLIER BASE OF BIG BUSINESS OVERALL AND AS MUCH AS 70 OF THE SUPPLIERS OF INDIVIDUAL FIRMS ACCORDING TO A SURVEY THIS YEAR OF 47 LARGE CORPORATIONS BY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT CONSEQUENTLY A RISING RELUCTANCE AMONG SUCH FIRMS TO DO BUSINESS WITH BIG CUSTOMERS COULD HAVE BROAD IMPLICATIONS I THINK IT'S A SERIOUS TREND SAYS SUSAN HELPER ASSISTANT PROFESSOR OF ECONOMICS AT CASE WESTERN RESERVE UNIVERSITY IN CLEVELAND BECAUSE THEY FEEL THEIR RELATIONSHIPS WITH BIG CUSTOMERS ARE SO TENUOUS SUPPLIERS SOMETIMES AREN'T WILLING TO MAKE LARGE INVESTMENTS REQUIRED TO SERVE THESE CUSTOMERSAND TO KEEP US INDUSTRY COMPETITIVE SHE ADDS ROBERT HALL PROFESSOR OF OPERATIONS MANAGEMENT AT INDIANA UNIVERSITY'S INDIANAPOLIS CAMPUS ADDS HAVING AND MAINTAINING AN EFFECTIVE SUPPLIER NETWORK IS CRITICAL TO ANY COMPANY'S STRATEGY IF YOU DON'T HAVE IT YOU'RE DEAD SOME BIG COMPANIES ARE ADDRESSING THE PROBLEM XEROX CORP MOTOROLA INC AND FORD MOTOR CO HAVE SUCCEEDED AT FOSTERING RATHER THAN STRAINING RELATIONS WITH SUPPLIERS SAYS JAMES WELCH A SENIOR CONSULTANT AT ARTHUR D LITTLE INC IN CAMBRIDGE MASS BY CREATING LONGTERM COOPERATIVE RELATIONSHIPS WITH SMALL COMPANIES THESE BIG COMPANIES ARE ABLE TO GET IMPROVED PERFORMANCE OUT OF THEIR SUPPLIERS WITHOUT BEATING THEM UP MR WELCH SAYS BUT SUCH EXAMPLES ARE RARE HE ADDS PHIL MCCULLOUGH VICE PRESIDENT OF AEROSPACEPARTS MANUFACTURER FIBREFORM ELECTRONICS INC IN HUNTINGTON BEACH CALIF SAYS HE HEARS A LOT OF TALK AT HUGHES AIRCRAFT CO ABOUT LONGTERM PARTNERSHIPS WITH SUPPLIERS BUT HE SAYS BUYING DECISIONS OF THE GM UNIT WHICH ACCOUNTS FOR 35 OF FIBREFORM'S ANNUAL SALES STILL SEEM DRIVEN MAINLY BY WHAT SUPPLIERS CHARGE UNIT PRICE SEEMS TO OVERRIDE EVERYTHING HE SAYS NOTING THAT FIBREFORM HAS BEEN UNABLE TO RAISE ITS PRICES SINCE 1989 THE VOLUME OF HUGHES ORDERS HAS DECLINED AS WELL BY 40 SINCE 1989 MR MCCULLOUGH SAYS AS A RESULT FIBREFORM AND SOME OF ITS PEERS IN THE LOS ANGELES AREA HAVE BEGUN A JOINT EFFORT TO EXPAND OUTSIDE THE DEFENSE INDUSTRY INTO SUCH FIELDS AS COMMERCIAL AVIATION AND MEDICAL DEVICES FOR YEARS WE'VE HAD THE PHILOSOPHY THAT IT WOULD BE BETTER TO DO A WHOLE LOT OF BUSINESS WITH A FEW VERY SUBSTANTIAL CUSTOMERS MR MCCULLOUGH SAYS IT WORKED FOR YEARS BUT WITH EVERYTHING SLOWING DOWN WE'VE HAD TO RUN OUT AND EXPAND OUR CUSTOMER BASE AT PENTEK CORP AN INDIANAPOLIS MAKER OF CONVEYOR SYSTEMS PRESIDENT DANIEL QUINN HAS EXPANDED INTERNATIONALLY IN RESPONSE TO DECLINING DEMAND AMONG HIS BIGGEST CUSTOMERS US PRODUCERS OF CORRUGATED BOXES SUCH AS INTERNATIONAL PAPER CO WEYERHAEUSER CO AND STONE CONTAINER CORP IN 1991 THE COMPANY INCREASED OVERSEAS ADVERTISING BEGAN ATTENDING MORE FOREIGN TRADE SHOWS AND CREATED A POSITION SOLELY FOR MANAGING THE COMPANY'S INTERNATIONAL SALES REPRESENTATIVES FOREIGN CUSTOMERS' SHARE OF PENTEK'S TOTAL SALES HAS SINCE RISEN TO 40 FROM 10 MR QUINN SAYS THE COMPANY'S SUCCESS OVERSEAS HARDLY MEANS PENTEK IS ABANDONING ITS LARGE US CUSTOMERS MR QUINN SAYS THE COMPANY IN FACT HAS RESTRUCTURED ITSELF TO ACCOMMODATE THEIR DEMAND FOR SMALLER SHIPMENTS THAT ARE DELIVERED MORE FREQUENTLY A PRACTICE THAT HELPS HOLD DOWN INVENTORY COSTS BUT AS THE OVERSEAS SALES PITCH SUGGESTS PENTEK IS TAKING NO CHANCES 9303290022 930329 TOWERS FINANCIAL SEEKS PROTECTION UNDER CHAPTER 11 BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOWERS FINANCIAL CORP THE TROUBLED BILL COLLECTION AND FACTORING FIRM FILED FOR BANKRUPTCY COURT PROTECTION FRIDAY ONE DAY AFTER ITS FIVE HEALTHCARE FINANCE UNITS MADE A SIMILIAR FILING THE CHAPTER 11 PETITION CAME ONLY HOURS BEFORE THE SECURITIES AND EXCHANGE COMMISSION WAS TO ASK US DISTRICT COURT JUDGE WHITMAN KNAPP TO EXPAND THE POWERS OF A TRUSTEE INITIALLY APPOINTED TO REVIEW TOWERS'S BOOKS AND RECORDS THE SEC CONTENDS THAT THOSE RECORDS SUBSTANTIALLY INFLATE TOWERS' VALUE AND THAT TOWERS AND ITS CHAIRMAN STEVEN HOFFENBERG HAVE PERPETRATED A MASSIVE FRAUD ON INVESTORS WHO BOUGHT 400 MILLION OF NOTES AND BONDS IN LIGHT OF THE BANKRUPTCY COURT FILING JUDGE KNAPP TURNED TOWN THE SEC REQUEST AND SAID HE WOULD LEAVE TO THE BANKRUPTCY COURT JUDGE THE DECISION WHETHER TO APPOINT A TRUSTEE TO RUN TOWERS OR TO ALLOW ITS CURRENT MANAGEMENT TO CONTINUE OPERATING THE FIRM BUT JUDGE KNAPP SAID HE BELIEVED THE BANKRUPTCY COURT PETITION WAS AN ATTEMPT BY TOWERS TO AVOID TURNING OVER COMPLETE CONTROL TO THE SEC TRUSTEE AN ASSERTION DENIED BY THE ATTORNEY FOR TOWERS IN ITS BANKRUPTCY COURT FILING TOWERS CLAIMED 2517 MILLION IN TOTAL ASSETS AND 2716 MILLION IN LIABILITIES IT ALSO SAID IT IS EXPERIENCING A MONTHLY OPERATING LOSS OF 700000 MR HOFFENBERG HAS SAID HE WANTS TO BRING IN A CRISIS MANAGEMENT TEAM TURNAROUND SPECIALISTS QUALITY REORGANIZATION MANAGEMENT INC TO RUN TOWERS WHILE IT IS UNDER BANKRUPTCY COURT PROTECTION BUT RICHARD S WALKER THE SEC REGIONAL ADMINISTRATOR IN THE NEW YORK OFFICE TOLD JUDGE KNAPP THAT IN LIGHT OF THE ALLEGED FRAUD MR HOFFENBERG AND OTHER OFFICIALS AT TOWERS ARE NOT THE MOST RESPONSIBLE PEOPLE TO BE MAKING BUSINESS DECISIONS ABOUT THE FUTURE OF THE COMPANY 9303290021 930329 ROGERS POSTS LOSS FOR FOURTH QUARTER AFTER RESTRUCTURING ROGERS CONN ROGERS CORP SAID IT HAS AGREED TO SELL ITS LARGEST DIVISION IN A RESTRUCTURING RESULTING IN CHARGES AND A FOURTHQUARTER LOSS OF 265 MILLION OR 856 A SHARE THE MAKER OF CIRCUIT MATERIALS AND ELECTRONIC COMPONENTS SAID IT AGREED TO SELL ITS LARGEST DIVISION FLEXIBLE INTERCONNECTIONS TO VENTURE CAPITAL FIRM AMPERSAND VENTURES OF WELLESLEY MASS FOR AN UNDISCLOSED PURCHASE PRICE THAT IS EXPECTED TO BRING SUBSTANTIAL CASH FLOW TO ROGERS ROGERS SAID IT TOOK A FOURTHQUARTER CHARGE OF 224 MILLION RELATED TO THE SALE AND AN ADDITIONAL 42 MILLION IN OTHER RESTRUCTURING CHARGES THE SALE IS EXPECTED TO BE COMPLETED IN THE SECOND QUARTER ROGERS HAD FOURTHQUARTER SALES OF 468 MILLION COMPARED WITH 427 MILLION IN THE YEARAGO QUARTER IN THE 1991 FOURTH QUARTER THE COMPANY HAD A LOSS OF 3 MILLION OR 98 CENTS A SHARE AFTER A 29 MILLION RESTRUCTURING CHARGE FLEXIBLE INTERCONNECTIONS HAD 1992 SALES OF 53 MILLION BUT HAD POSTED SIGNIFICANT LOSSES FOR MANY YEARS ROGERS SAID THE COMPANY SAID ITS FOUR REMAINING PRODUCT GROUPS WERE PROFITABLE IN 1992 AND SHOULD PRODUCE NET INCOME OF MORE THAN 15 MILLION FOR THE FIRST QUARTER ENDING APRIL 3 HARRY BIRKENRUTH ROGERS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE RESTRUCTURING WILL BRING THE COMPANY BACK TO PROFITABILITY AND WILL PROVIDE A STRONG SPRINGBOARD FOR FURTHER LONGTERM IMPROVEMENT FOR 1992 ROGERS HAD A LOSS OF 327 MILLION OR 1056 A SHARE AFTER CHARGES ON SALES OF 1724 MILLION IN 1991 THE COMPANY HAD A LOSS OF 23 MILLION OR 75 CENTS A SHARE AFTER CHARGES ON SALES OF 1824 MILLION 9303290020 930329 WHO'S NEWS SCHOTT GROUP SCHOTT GROUP MAINZ GERMANY GUY DE CONINCK 44 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SCHOTT CORP A NEW YORKBASED SUBSIDIARY SUCCEEDING HANS MOELLER 63 WHO WILL BECOME VICE CHAIRMAN OF THE UNIT EFFECTIVE THURSDAY MR DE CONINCK WAS MANAGER OF SCHOTT'S INTERNATIONAL DIVISION IN GERMANY SCHOTT GROUP PRODUCES SPECIALTY GLASS USED IN SCIENCE AND INDUSTRY 9303290019 930329 CASCADE INTERNATIONAL EXOFFICIAL PLEADS GUILTY IN LARCENY CASE NEW YORK A FORMER VICE PRESIDENT OF CASCADE INTERNATIONAL INC HAS PLEADED GUILTY TO ONE COUNT OF GRAND LARCENY WHILE THE FOUNDER OF THE DEFUNCT WOMEN'S RETAILER REMAINS A FUGITIVE BY PLEADING GUILTY TO THE ONE LARCENY COUNT JOHN T SIRMANS 48 YEARS OLD AVOIDED THE MORE SERIOUS CHARGE OF ENTERPRISE CORRUPTION THE STATE EQUIVALENT OF RACKETEERING MR SIRMANS ALSO HAD BEEN INDICTED ON THAT CHARGE IN NOVEMBER BY A NEW YORK GRAND JURY HIS INDICTMENT ALSO CONTAINED A SECOND LARCENY COUNT SEVEN COUNTS OF MAKING FALSE STATEMENTS TO THE SECURITIES AND EXCHANGE COMMISSION AND FOUR COUNTS OF SCHEMING TO DEFRAUD HE WILL BE SENTENCED ON THE ONE LARCENY COUNT ON JUNE 3 THE FOUNDER OF CASCADE VICTOR G INCENDY STILL FACES THE MORE SERIOUS RACKETEERING CHARGE AS WELL AS THE OTHER LARCENY FALSE STATEMENT AND FRAUD CHARGES STATE PROSECUTORS ALLEGE HE AND MR SIRMANS RAN CASCADE LIKE A CRIMINAL ENTERPRISE WITH STOCKHOLDERS AND BANKS AS THEIR VICTIMS THE INVESTIGATION IS CONTINUING AND ADDITIONAL INDICTMENTS ARE POSSIBLE ACCORDING TO A SPOKESMAN FOR ROBERT MORGENTHAU THE DISTRICT ATTORNEY IN MANHATTAN THE SPOKESMAN DECLINED TO COMMENT ON WHETHER MR SIRMANS HAS AGREED TO COOPERATE WITH PROSECUTORS BUT TYPICALLY SUCH PLEA AGREEMENTS INCLUDE SUCH AN ARRANGEMENT MR INCENDY VANISHED IN NOVEMBER 1991 AFTER SOME INDUSTRY WATCHERS STARTED QUESTIONING WHETHER THE COMPANY'S OPERATIONS WERE GENUINE BUT THAT WAS WELL AFTER THE COMPANY'S STOCK HAD RISEN ON WHAT ARE NOW BELIEVED TO BE MISLEADING REPORTS BY THE COMPANY THE SPOKESMAN FOR MR MORGENTHAU SAID THE OFFICE DIDN'T KNOW WHERE MR INCENDY WAS IF WE DID WE'D HAVE HIM THE SPOKESMAN SAID 9303290018 930329 INTERNATIONAL ITALY PROBES FORMER LEADER FOR MOB TIES BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN ITALY'S SCANDALS TOOK A STARTLING TWIST WHEN THE COUNTRY'S BESTKNOWN POLITICIAN FORMER PRIME MINISTER GIULIO ANDREOTTI WAS NOTIFIED HE IS UNDER INVESTIGATION FOR ALLEGED LINKS TO THE MAFIA MR ANDREOTTI WHO HAS BEEN PRIME MINISTER SEVEN TIMES CALLED THE ACCUSATIONS SLANDEROUS AND DENIED ANY WRONGDOING HE SAID THE INVESTIGATION WAS A VENDETTA AGAINST HIM BY THE MOB SIMILAR CHARGES WERE LOGGED AGAINST TWO FORMER CABINET MINISTERS AND THREE MEMBERS OF PARLIAMENT THEY TOO DENIED THE ACCUSATIONS THE NEWS IS ESPECIALLY SHOCKING GIVEN THAT ONE OF THE MINISTERS UNDER SCRUTINY ANTONIO GAVA WAS FORMER MINISTER OF THE INTERIOR UNDER MR ANDREOTTI IN CHARGE OF BATTLING ORGANIZED CRIME WHILE SOME OF THE INVESTIGATIONS ARE UNRELATED TO THOSE STEMMING FROM OPERATION CLEAN HANDS THE KICKBACK PROBE IN NORTHERN ITALY OPPOSITION LEADERS SAY THE CASES AGAINST MR ANDREOTTI AND OTHER TOP POLITICAL LEADERS ARE POSSIBLE ONLY NOW BECAUSE OF THE COUNTRY'S NEW COMMITMENT TO ROOTING OUT CORRUPTION MANY SAY THE WEEKEND INVESTIGATIONS ARE A NEW CHAPTER IN THE SCANDALS EXAMINING LONGRUMORED LINKS BETWEEN ORGANIZED CRIME AND THE POLITICAL WORLD GUILTY VERDICTS WOULD MEAN THAT THE SICILIAN AND NEAPOLITAN MAFIA HAVE BEEN OPERATING NOT ONLY WITH THE KNOWLEDGE OF POLITICIANS BUT WITH THEIR ASSISTANCE AS WELL THE CASE OF MR ANDREOTTI IS SEPARATE FROM THE INVESTIGATIONS OF THE TWO FORMER MINISTERS AND THREE MEMBERS OF PARLIAMENT MR ANDREOTTI'S CASE INVOLVES ALLEGED COLLUSION WITH THE SICILIAN MAFIA OR COSA NOSTRA WHILE THE OTHER FIVE INVOLVE ALLEGED CONNECTION WITH THE NEOPOLITAN MAFIA OR CAMORRA ALL SIX OF THE POLITICIANS ARE PROTECTED FROM PROSECUTION BY PARLIAMENTARY IMMUNITY IN THE CASE OF MR ANDREOTTI WHO IS A CHRISTIAN DEMOCRAT SENATOR FOR LIFE A SENATE COMMITTEE WILL BEGIN TODAY EXAMINATION OF A 250PAGE DOCUMENT DETAILING THE CHARGES AGAINST HIM FOLLOWING THE COMMITTEE'S RECOMMENDATION THE SENATE WILL VOTE ON WHETHER TO LIFT IMMUNITY THE CHARGES AGAINST MR ANDREOTTI STEM IN PART FROM PROBES INTO THE MURDER IN PALERMO LAST MARCH OF SALVATORE LIMA LEADER OF THE CHRISTIAN DEMOCRATIC PARTY IN SICILY AND A CLOSE ALLY OF MR ANDREOTTI MAGISTRATES HAVE BEEN GATHERING EVIDENCE IN THAT CASE FOR A YEAR AND HAVE ALREADY MADE DOZENS OF ARRESTS MR LIMA ACCORDING TO LEAKED INFORMANT TESTIMONY WAS CONSIDERED THE INTERMEDIARY BETWEEN THE SICILIAN COSA NOSTRA AND ROME POLITICIANS INFORMANTS REPORTEDLY SAID THE FORMER PRIME MINISTER ALLEGEDLY HELPED EXECUTE THE REQUESTS OF MR LIMA IN ROME 9303290017 930329 INTERNATIONAL MALAYSIAN PREMIER SAYS US POLICIES HURT CHANCE FOR GLOBAL GROWTH STABILITY BY KAREN ELLIOTT HOUSE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA THE US MUST STOP SEEKING TO IMPOSE ITS VALUES ON THE REST OF THE WORLD ESPECIALLY RUSSIA AND CHINA SAID MALAYSIAN PRIME MINISTER MAHATHIR MOHAMAD IF IT WANTS TO ADVANCE GLOBAL STABILITY AND PROSPERITY THE PRIME MINISTER PREDICTED IN AN INTERVIEW THAT UNLESS AUTHORITARIAN RULE IS RAPIDLY RESTORED IN RUSSIA THE COUNTRY IS LIKELY TO DISINTEGRATE INTO CHAOS IT MUST HAVE POLITICAL STABILITY DR MAHATHIR SAID DEMOCRACY ISN'T A SYSTEM THAT BRINGS ABOUT STABILITY IF RUSSIA TRIES TO PRACTICE LIBERAL DEMOCRACY IT MAY SPLIT FURTHER AND CERTAINLY CHAOS IS LIKELY IN THAT ATMOSPHERE THE ECONOMY CANNOT RECOVER THE PRIME MINISTER WHO HAS GOVERNED MALAYSIA WITH A STRONG HAND DURING MORE THAN A DECADE OF RAPID ECONOMIC DEVELOPMENT MADE HIS REMARKS BEFORE RUSSIAN PRESIDENT BORIS YELTSIN'S CRISIS LAST WEEK HE PREDICTED THAT MR YELSTIN WILL GO THE WAY OF MIKHAIL GORBACHEV HIS TURN WILL COME HE SAID THE PROBLEM ISN'T LEADERSHIP IT IS THE RUSSIAN PEOPLE NOT UNDERSTANDING FREE MARKETS OR DEMOCRACY THE VIEW THAT DEMOCRACY IS INCOMPATIBLE WITH ECONOMIC DEVELOPMENT IS ONE EXPRESSED REPEATEDLY IN ASIA MANY ASIAN LEADERS BUSINESSMEN AND ACADEMICS POINT TO CHINA'S RAPID ECONOMIC GROWTH AND RUSSIA'S REGRESSION AS PROOF THAT DEVELOPING NATIONS NEED AUTHORITARIAN LEADERSHIP AND AMONG SOME THERE IS A GROWING SUSPICION THAT AMERICA'S PUSH FOR DEMOCRACY AND HUMAN RIGHTS IN CHINA IS INTENDED TO RETARD WHAT IS WIDELY SEEN BY ASIANS AS CHINA'S INEXORABLE RISE TO GLOBAL PREEMINENCE DR MAHATHIR REFLECTED A PARADOX THERE IS INCREASING CONFIDENCE IN ASIA THAT CHINA'S RAPID ECONOMIC GROWTH WILL BENEFIT ALL ASIANS BUT EMERGING UNEASE THAT THE COUNTRY'S ECONOMIC POWER INEVITABLY WILL BE MATCHED BY POLITICAL AND MILITARY MIGHT THAT COULD BE ABUSED OR AROUSE JAPAN TO REARM THERE IS FURTHER UNEASE THAT PRESIDENT CLINTON'S STILL UNENUNCIATED ASIA POLICY MAY AMOUNT TO LITTLE MORE THAN PROTECTIONISM DR MAHATHIR WHO IS OFTEN MORE OPENLY CRITICAL OF THE US THAN OTHER ASIAN LEADERS COMPLAINED THAT AS THE WORLD'S SOLE SUPERPOWER AMERICA IS PROVING IMPERIOUS NOW THAT WE HAVE ONLY ONE POWER HE SAID THERE IS A TENDENCY TO RIDE ROUGHSHOD OVER THE OPINIONS OF OTHERS BEFORE PEOPLE COULD EXPRESS VIEWS THAT WERE DIFFERENT NOW CRITICAL COMMENTS AREN'T WELL TOLERATED HIS ADVICE TO THE NEW CLINTON ADMINISTRATION DON'T TRY TO MEASURE ASIA BY US STANDARDS AND VALUES AND EXPECT US TO CHANGE IMMEDIATELY WE WILL CHANGE BUT NOT QUICKLY LIKE MANY ASIANS DR MAHATHIR SEES JAPAN AND CHINA AS POWERFUL ENGINES OF GROWTH FOR ASIA IN THE LONG TERM BUT FRETS THAT IN THE SHORT TERM THE US WHICH STILL ABSORBS A QUARTER OF ALL ASIAN EXPORTS IS TURNING PROTECTIONIST HE IS ESPECIALLY WORRIED THAT THE NORTH AMERICAN FREE TRADE AGREEMENT OR NAFTA WHICH WOULD COMBINE CANADA MEXICO AND THE US IN ONE LARGE FREETRADE AREA WILL HURT MALAYSIA'S EXPORTS TO NORTH AMERICA THE LIKELIHOOD IS THAT TO RESOLVE YOUR IMMIGRATION PROBLEM FROM MEXICO YOU WILL MOVE YOUR PRODUCTION THERE BUT PREVENT OTHERS FROM DOING SO HE SAID AS A RESULT HE FEARS US PRODUCERS COULD TAKE ADVANTAGE OF CHEAP LABOR IN MEXICO TO PRODUCE PRODUCTS NOW IMPORTED FROM ASIA BUT ASIANS SEEKING TO DO LIKEWISE WOULD BE TREATED AS OUTSIDERS BY NAFTA INDEED WAGE LEVELS EMERGED AS DR MAHATHIR'S PRIMARY CONCERN LOW WAGES HE SAID ARE MALAYSIA'S MAJOR COMPETITIVE ADVANTAGE WITHOUT THEM HE SAID THE COUNTRY CAN'T COMPETE WE DON'T HAVE A MARKET MONEY MANAGEMENT KNOWHOW OR TECHNOLOGY HE SAID IF YOU TAKE OUR ONE ADVANTAGE WE CAN'T COMPETE HE SAID THE AVERAGE MALAYSIAN WORKER EARNS IN A MONTH WHAT A JAPANESE OR GERMAN WORKER EARNS IN TWO DAYS THE PRIME MINISTER SAID HE DOESN'T WANT MALAYSIAN WORKERS TO FOLLOW THOSE IN SOUTH KOREA WHERE STRIKES HAVE BROUGHT HIGHER WAGES BUT SLOWER PRODUCTIVITY GROWTH CONTRIBUTING TO AN ECONOMIC SLOWDOWN WE WORRY ABOUT OUR WORKERS HE SAID ONCE YOU INSIST WORKERS HAVE THE RIGHT TO STRIKE THEY DON'T KNOW HOW FAR TO GO 9303290016 930329 LIFE BY THE ROAD TWIN BORDER CITIES BEAR BRUNT OF TRADE BUSY USMEXICO TRUCK ROUTE HAS LAREDO AREA CONCERNED ABOUT AFFECTS OF TRADE PACT BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL NUEVO LAREDO MEXICO TRUCK DRIVER MARCARIO BERNAL MUSCLES HIS 18WHEELER ACROSS A SHAKY BRIDGE FROM TEXAS MAKES A SHARP RIGHT SENDS PEDESTRIANS DARTING AND THEN QUEUES FOR COMBAT WITH MEXICAN CUSTOMS IT TAKES FOREVER SNARLS MR BERNAL AS TRUCKS DRIVEN BY HIS CONFEDERATES MEN LIKE MAD DOG AND SAVAGE BUFFALO CLOG BOTH SIDES OF THE RIO GRANDE THE NORTH AMERICAN FREETRADE AGREEMENT MAY SOME DAY UNITE THE ECONOMIES OF MEXICO THE US AND CANADA BUT THE ROAD TO USMEXICAN ECONOMIC INTEGRATION IS PITTED WITH POTHOLES THAT CAN SINK EVEN GRIZZLED VETERANS LIKE MR BERNAL AND WHILE THE TRADE PACT FACES A TOUGH US RATIFICATION PROCESS WORRIES ARE MOUNTING IN MEXICO THAT FINANCING THE REPAIR AND BUILDUP OF MEXICO'S INFRASTRUCTURE ITS ALREADY STRAINED AND INADEQUATE ROADS AND BRIDGES PHONES AND PORTS COULD BE AN EVEN TOUGHER PROBLEM SOME ESTIMATES PUT THE COST AT AS MUCH AS 100 BILLION THERE IS PERHAPS NO COMMUNITY WISER TO THE DAMAGE THAT CROSS BORDER COMMERCE CAN DO TO THE INFRASTRUCTURE THAN THE HALF A MILLION RESIDENTS OF LOS DOS LAREDOS AS THE MEXICAN AND TEXAN TWIN BORDER CITIES ARE CALLED ABOUT HALF OF ALL THE TRADE BETWEEN THE TWO NATIONS IS FUNNELED THROUGH THESE CITIES TRADE MEASURED BY TRUCKS HAS JUMPED FIVEFOLD SINCE 1987 WHEN MEXICO'S PRESIDENT CARLOS SALINAS BEGAN OPENING UP MEXICO'S ONCECLOSED ECONOMY WE'RE GETTING CHOKED UP SAYS JACOBO SUNESON A MEXICAN HOUSEWARES MERCHANT WHOSE STORE'S GLASSWARE HAS BEEN BROKEN FREQUENTLY BY THE RATTLE OF 25TON TRUCKS RUMBLING PAST HIS BUSINESS IT'S DEPLORABLE LAST YEAR THE TWIN CITIES SAW ONE RIG PASS THROUGH FOR EVERY RESIDENT AND MORE ARE COMING HALF OF THE PROBLEM LIES IN A SOCALLED GENTLEMEN'S AGREEMENT STRUCK YEARS AGO IN THE LAREDO AREA THAT WAS DESIGNED TO SPREAD AROUND WORK AS WELL AS CONGESTION AND ROAD DAMAGE UNDER THE AGREEMENT US AND MEXICAN TRUCKERS PLEDGED NOT TO PICK UP NEW LOADS AFTER THEY MADE DELIVERIES ACROSS THE BORDER WHICH MEANS THE BIG TRUCKS RETURN HOME EMPTY SAYS JAMES GIERMANSKI A PROFESSOR AT LAREDO STATE UNIVERSITY IN TEXAS THIS IS TANTAMOUNT TO ANTICOMPETITIVENESS AND OUGHT TO BE UNDER THE SCRUTINY OF THE TWO COUNTRIES' ATTORNEYS GENERAL OTHER PROBLEMS STEM FROM THE BOOM IN ASSEMBLY FACTORIES ON THE MEXICAN SIDE OF THE BORDER AND THE ARMIES OF WORKERS WHO TOOK JOBS HERE INFRASTRUCTURE NEVER KEPT UP NUEVO LAREDO FOR EXAMPLE DUMPS AS MUCH AS 22 MILLION GALLONS A DAY OF UNTREATED RAW SEWAGE INTO THE RIO GRANDE ON THE US SIDE LAREDO TEXAS ACTUALLY TAKES ITS DRINKING WATER FROM THE RIVER AFTER CHEMICAL TREATMENT A SEWAGETREATMENT PLANT IS STILL MORE THAN A YEAR AWAY FROM COMPLETION AS BAD AS THE BORDER CAN BE VICTOR MARROQUIN AND PETER GREENBLUM PREFER IT TO THEIR INDIANA JONESLIKE EXPERIENCES IN MEXICO'S INTERIOR IN 1990 THEY SET UP A FACTORY TO MAKE FANCY WOOD CONSOLES FOR VANS IN MONTERREY AN INDUSTRIAL CITY 150 MILES SOUTH OF THE BORDER BUT THE POORLY MAINTAINED NARROW HIGHWAY BETWEEN MONTERREY AND THE US PROVED TOO HARROWING THE PAIR THEN MOVED TO NUEVO LAREDO WHERE THEIR BIG WOE IS BRIDGE CONGESTION IT CAN TAKE ANYWHERE FROM FOUR HOURS TO A DAY AND A HALF TO GET THEIR PRODUCT ACROSS THE BORDER THOSE FURTHER INLAND WORRY THAT MEXICO'S TRANSPORTATION SYSTEM MIGHT NOT BE READY FOR THE FREETRADE PACT WHEN AND IF IT'S FINALLY PASSED CONSIDER JACOBO MELCER A COMPUTER PARTSMAKER EARLIER THIS YEAR HE SAYS HE LOST A 25 MILLION CONTRACT WITH SEIKO EPSON CORP A JAPANESE MAKER OF COMPUTER PRINTERS BECAUSE OF MEXICO'S POOR TRANSPORT NETWORK MR MELCER'S COMPANY MATCHED HONG KONG AND THAILAND MANUFACTURING COSTS BUT SHIPPING ACROSS THE GLOBE WAS ACTUALLY CHEAPER THAN TRUCKING FROM MEXICO'S INTERIOR NEARLY A YEAR LATER WITH MANY NEW ROADS NEARING COMPLETION MR MELCER NOW FEARS THE HIGH COST OF TOLLS MAY FORCE TRUCKERS TO AVOID THE NEW ROADS PUTTING EVEN MORE BURDEN ON THE OLD ONES THAT COULD BE A DISASTER HE SAYS TO BE SURE THE FOURYEAROLD SALINAS ADMINISTRATION IS TO BE CREDITED WITH CONSTRUCTING OR CONCESSIONING MORE THAN 3000 MILES OF HIGHWAYS AND ROADS BUT PUBLIC WORKS FINANCING INTERNATIONAL AN INDUSTRY NEWSLETTER BASED IN NEW JERSEY CALLS MEXICO'S TOLLS THE PRICIEST IN THE WORLD A NEARLY COMPLETED TOLL ROAD FROM MONTERREY TO THE TEXAS BORDER FOR EXAMPLE COSTS 42 ROUNDTRIP FOR A PASSENGERCAR AND CAN RUN QUADRUPLE THAT FOR A LARGE CARGOHAULING TRUCK AND MORE CONSTRUCTION IS NEEDED BUT THAT IS MADE DIFFICULT BY THE LACK OF GOVERNMENT GUARANTEES TO PROTECT INVESTORS AGAINST POLITICAL RISK AND CURRENCY EXCHANGE LOSSES ISSUES THAT STILL MAKE SOME US INVESTORS EDGY WHAT INTERNATIONAL COMPANY OR EVEN ONE IN MEXICO IS WILLING TO LEND WITHOUT A GUARANTEE FROM THE GOVERNMENT SAYS HERMANN VON BERTRAB OF ARKA SECURITIES A MEXICAN BROKERAGE WITH US OFFICES THE WAY IT IS STRUCTURED NOW IT IS GOING TO FAIL ADDS ROGELIO RAMIREZ DE LA O A PRIVATE ECONOMIST WE ARE GOING TO BE DELAYED IN DEVELOPING AND THERE IS NOTHING WORSE THAN BEING LATE 9303290015 930329 TECHNOLOGY BRIEF MICRON TECHNOLOGY INC FISCAL SECONDQUARTER NET ROSE SHARPLY TO 9 MILLION MICRON TECHNOLOGY INC CITING REDUCED COSTS AND INCREASED VOLUMES SAID IT POSTED A FIVEFOLD INCREASE IN EARNINGS FOR ITS FISCAL SECOND QUARTER ENDED MARCH 4 THE BOISE IDAHO MEMORYCHIP MAKER SAID IT EARNED 9 MILLION OR 22 CENTS A SHARE ON REVENUE OF 1764 MILLION IN THE YEARAGO PERIOD MICRON POSTED NET OF 15 MILLION OR FIVE CENTS A SHARE ON SALES OF 1282 MILLION MICRON ATTRIBUTED ITS HIGHER RESULTS TO IMPROVED MANUFACTURING YIELDS WHICH RESULTED IN LOWER PERUNIT COSTS AND HIGHER SELLING PRICES FOR MEMORY CHIPS FOR THE SIXMONTH PERIOD MICRON REPORTED NET OF 117 MILLION OR 29 CENTS A SHARE ON REVENUE OF 307 MILLION IN THE YEARAGO PERIOD THE COMPANY POSTED PROFIT OF 2 MILLION OR FIVE CENTS A SHARE ON SALES OF 240 MILLION 9303290014 930329 MANAGEMENT BAXTER SEEKS TO SOFTEN FALLOUT FROM GUILTY PLEA IN BOYCOTT CASE BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL BAXTER INTERNATIONAL INC KNOWS A LOT ABOUT MENDING WOUNDS NOW THE WORLD'S LARGEST HOSPITAL SUPPLIER HAS BEGUN A STRENUOUS BEHINDTHESCENES CAMPAIGN TO TRY TO PATCH UP INJURIES TO ITS OWN REPUTATION FROM ITS FELONY GUILTY PLEA TO A FEDERAL CHARGE OF COOPERATING WITH THE ARAB BOYCOTT OF ISRAEL THE DEERFIELD ILL COMPANY EAGER TO SHORE UP ITS IMAGE AND ITS HOSPITALSUPPLY BUSINESS ESPECIALLY AMONG JEWISH CUSTOMERS INITIATED THE QUIET PUBLICRELATIONS OFFENSIVE WEEKS BEFORE LAST THURSDAY'S PLEA TO VIOLATING THE ANTIBOYCOTT LAW THE COMPANY AGREED TO PAY 65 MILLION IN CIVIL AND CRIMINAL FINES BAXTER EXECUTIVES PRINCIPALLY SENIOR VICE PRESIDENT ANTHONY J RUCCI HAVE BEEN CONFERRING WITH INFLUENTIAL US JEWISH LEADERS AND SECURITIES ANALYSTS TO WARD OFF THE EXPECTED BACKLASH COMPANY OFFICIALS HAVE WRITTEN TO THEM ABOUT THE COMPANY'S EFFORTS TO DO MORE BUSINESS IN ISRAEL AND BAXTER EVEN OFFERED TO MAKE A MONETARY CONTRIBUTION TO THE SIMON WIESENTHAL CENTER IN LOS ANGELES A JEWISH HUMANRIGHTS GROUP BAXTER'S CAMPAIGN WILL BE A DIFFICULT ONE THOUGH BECAUSE FEDERAL FELONIES ARE NOT EASILY EXPLAINED AWAY EVEN BY THE MOST ARDENT SPIN DOCTORS THE PUBLIC RELATIONS DRIVE FACES TOUGH OBSTACLES BAXTER'S GENERAL COUNSEL G MARSHALL ABBEY WHO LED THE MULTIYEAR EFFORT NOW JUDGED A FEDERAL CRIME IS STAYING ON AS BAXTER'S TOP LAWYER AT LEAST FOR NOW SO IS BAXTER CHAIRMAN VERNON R LOUCKS JR WHO SUPERVISED MR ABBEY'S EFFORTS IN EUROPE AND THE MIDDLE EAST THAT LED TO BAXTER'S ADMISSION OF A CRIME THE COMPANY'S DEFENSE LAWYERS TOLD GOVERNMENT INVESTIGATORS IN RECENT WEEKS THAT MR ABBEY WOULD BE LEAVING BAXTER HOWEVER MR RUCCI LAST WEEK SAID THE GENERAL COUNSEL PLANS TO STAY ON THE JOB A MAIN OBJECTIVE OF BAXTER'S CAMPAIGN IS TO MAINTAIN THE COMPANY'S FRANCHISE ITS PREEMINENT POSITION IN THE HOSPITAL SUPPLY BUSINESS IN PARTICULAR JEWISH HOSPITALS AND US GOVERNMENTRUN HOSPITALS COULD CONSIDER CURTAILING BUSINESS WITH BAXTER ESPECIALLY IF JEWISH LEADERS ARE ANGRY ENOUGH BAXTER OFFICIALS PLAYING DOWN THE UNPLEASANTNESS OF THE ARAB BOYCOTT ISSUE HAVE VOWED TO INCREASE THEIR BUSINESS DEALINGS WITH ISRAEL ONE CRUCIAL GROUP FOR BAXTER IS PREMIER HOSPITALS ALLIANCE INC OF WESTCHESTER ILL WHICH PURCHASES SUPPLIES FOR SOME 150 US HOSPITALS MOST OF THEM JEWISH PREMIER EACH YEAR PAYS BAXTER 250 MILLION UNDER A DISTRIBUTIONANDSUPPLY CONTRACT FOR PRODUCTS SUCH AS GLOVES TRAYS AND OPERATING ROOM PACKS AND GOWNS PREMIER'S PRESIDENT ALAN WEINSTEIN SAID IT HASN'T DECIDED HOW THE GUILTY PLEA MIGHT AFFECT ITS DEALINGS WITH BAXTER BUT MEDICAL STAFFERS AT PREMIER HOSPITALS MAY BE VOCIFEROUS ON THE TOPIC PETER RUBIN FORMER PRESIDENT OF THE ATTENDING STAFF AT MOUNT SINAI MEDICAL CENTER IN NEW YORK SAYS HE EXPECTS A HUE AND CRY OVER THE GUILTY PLEA AND SEYMOUR COHEN A MOUNT SINAI ONCOLOGIST SAYS THE GUILTY PLEA WILL CAUSE HIM TO REINTRODUCE THE ISSUE OF WHETHER MOUNT SINAI SHOULD BE DOING BUSINESS WITH BAXTER ELSEWHERE BAXTER'S CAMPAIGN HAS HAD MIXED RESULTS MR RUCCI HAS MET OR SPOKEN WITH AMONG OTHERS TOP OFFICIALS OF THE ANTIDEFAMATION LEAGUE AND THE AMERICAN JEWISH CONGRESS AND COMPANY EXECUTIVES HAVE TALKED WITH OFFICIALS OF THE WIESENTHAL CENTER THE WIESENTHAL CENTER TURNED DOWN BAXTER'S OFFER OF A DONATION JESS N HORDES WASHINGTON DIRECTOR OF THE ANTIDEFAMATION LEAGUE HAS HAD SEVERAL MEETINGS WITH MR RUCCI AND SAYS BAXTER IS UNDERTAKING A SERIOUS EFFORT TO REENGAGE IN ISRAEL MANY OF US ARE PLEASED THE COMPANY EARLIER THIS YEAR ANNOUNCED AN IMMUNECELL TECHNOLOGY LICENSING AGREEMENT WITH THE WEIZMANN INSTITUTE OF SCIENCE IN ISRAEL BAXTER'S MR RUCCI HAS SAID THIS CONTRACT ISN'T A NEW INITIATIVE FOR BAXTER AND THAT THE CONTACTS WITH JEWISH LEADERS ARE MERELY AN EFFORT TO EXPLAIN THAT BAXTER CONTINUES TO DO BUSINESS IN ISRAEL THE COMPANY SELLS PRODUCTS THERE THROUGH A DISTRIBUTOR BUT SAYS MR HORDES THE ISSUE OF MR ABBEY AND WHETHER HE STAYS AS BAXTER'S TOP LAWYER IS A TEST OF WHERE THEY REALLY ARE HE'S THE GUY WHO MASTERMINDED THE DEAL IF HE JUST PAYS A FINE AND NOTHING ELSE HAPPENS THAT'S GOING TO CREATE A PROBLEM FOR THEM THEY HAVE A PR GAME PLAN AND THEY'RE TRYING TO AVOID DAMAGE SAYS MR HORDES THEY DO HAVE EXPOSURE WITH THE JEWISH COMMUNITY AND THAT'S WHAT THESE MEETINGS ARE ABOUT UNDER THE BAXTER PLEA AGREEMENT THE COMPANY PLEADED GUILTY BUT MR ABBEY AGREED ONLY TO PAY A 101000 CIVIL FINE THE COMPANY NOTED THAT THE GOVERNMENT DIDN'T CHARGE IT WITH PAYING BRIBES NOR DID THE GOVERNMENT CONCLUDE THAT BAXTER'S 1988 SALE OF AN ISRAELI PLANT WAS INITIATED TO GET OFF THE BOYCOTT LIST HOWEVER COURT DOCUMENTS MADE CLEAR THAT THE COMPANY AND MR ABBEY ENGAGED IN A CONCERTED MULTIYEAR EFFORT INVOLVING PAYING MILLIONS OF DOLLARS TO MIDDLEMEN AND OTHERS TO ESCAPE THE BOYCOTT LIST THE DOCUMENTS ALSO SHOWED THAT MR ABBEY COOPERATED WITH BOYCOTT AUTHORITIES BY SUBMITTING HUNDREDS OF ITEMS OF INFORMATION TO THEM ABOUT BAXTER BUSINESS IN ISRAEL THESE SUBMISSIONS WEREN'T ALLOWED BY THE US ANTIBOYCOTT LAW WILL MASLOW GENERAL COUNSEL OF THE AMERICAN JEWISH CONGRESS SAYS THE JEWISH COMMUNITY GENERALLY IS HAPPY THAT THE ANTIBOYCOTT LAW WAS VIGOROUSLY ENFORCED BUT MANY JEWS HE SAYS ARE CONCERNED THAT MR ABBEY STILL IS BAXTER GENERAL COUNSEL THIS IS A MAGNIFICENT DEMONSTRATION THAT THIS CLINTON ADMINISTRATION IS SERIOUS ABOUT ENFORCING THE ANTIBOYCOTT LAW MR MASLOW SAYS BUT IT WOULD HAVE BEEN BETTER IF SOMEONE RESPONSIBLE FOR ALL KINDS OF VIOLATIONS WAS PUNISHED FOR IT AT BAXTER THERE HAS BEEN AN INTERNAL PUBLICRELATIONS CAMPAIGN AS WELL IN THE COMPANY'S INTERNAL MAGAZINE ISSUED A FEW WEEKS BEFORE THE PLEA AGREEMENT MR RUCCI WROTE THAT SOME NEWS REPORTS ON BAXTER AND THE ARAB BOYCOTT HAVE BEEN QUITE MISLEADING IT'S IMPORTANT TO REPEAT WHAT BAXTER HAS SAID ALL ALONG HE WROTE IN A PIECE ENTITLED MIDEAST UPDATE HE ADDED WE BELIEVE WE DID NOTHING ILLEGAL IN OUR DEALINGS IN THE MIDEAST SO HOW WELLDESIGNED HAS THE BAXTER EFFORT BEEN JOHN F MAHON A BOSTON UNIVERSITY PROFESSOR OF MANAGEMENT WHO FOCUSES ON CORPORATE CRISIS CONTROL SAYS IT WAS SMART OF BAXTER TO START THE EFFORT EARLY TO FRAME THE ISSUE BEFOREHAND BUT HE SAYS SUCH TACTICS CAN BACKFIRE IT CAN PLACE HEAT ON THE JEWISH GROUPS THAT NOW ARE COOPERATING WITH BAXTER THERE'S A FINE LINE BETWEEN COOPERATING AND BEING COOPTED 9303290013 930329 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH JOINT VENTURE IS SET IN CHINA TO MARKET TELEPHONE GEAR AMERICAN TELEPHONE & TELEGRAPH CO SAID IN NEW YORK THAT IT WOULD FORM A JOINT VENTURE WITH CHINA NATIONAL POSTS AND TELECOMMUNICATIONS INDUSTRY CORP TO MARKET BUSINESS AND RESIDENTIAL TELEPHONE EQUIPMENT IN CHINA THE VENTURE THE DETAILS OF WHICH ARE STILL BEING NEGOTIATED FOLLOWS A SWEEPING ACCORD BETWEEN AT&T AND THE CHINESE GOVERNMENT TO BUILD AT&T SWITCHING EQUIPMENT IN CHINA AND COLLABORATE ON RESEARCH AND DEVELOPMENT PROJECTS AT&T SAID HONG KONGBASED S MEGGA INTERNATIONAL HOLDINGS LTD WHICH BUILDS AT&T CORDLESS PHONES WOULD ASSIST THE VENTURE THE NEW BUSINESS WILL MARKET CORDED AND CORDLESS TELEPHONES VIDEOPHONES DIGITAL ANSWERING MACHINES AND FACSIMILE MACHINES AT&T SAID 9303290012 930329 TOOL ORDERS ROSE 615 IN FEBRUARY ANALYSTS STILL GLUM BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS JUMPED 615 TO 2836 MILLION IN FEBRUARY FROM JANUARY'S LEVEL BUT ANALYSTS SAID INDUSTRY FUNDAMENTALS REMAIN WEAK MITCHELL I QUAIN AN ANALYST AT WERTHEIM SCHRODER & CO CALLED COMPARATIVE ORDER LEVELS ANEMIC AND BACKLOGS AT MANY MACHINETOOL MAKERS REMAIN LOW MR QUAIN SAID WE'RE HOPING THAT THE INVESTMENT TAX CREDIT WILL CHANGE THAT BUT IT HASN'T HAPPENED YET HE SAID INDEED KARL A KREFT PRESIDENT OF BOHLE MACHINE TOOLS INC IN FARMINGTON MICH SAID THE INVESTMENT TAX CREDIT PROPOSED BY THE CLINTON ADMINISTRATION HASN'T PROVED TO BE A MAJOR FACTOR FOR HIS CUSTOMERS AND J BLAIR BRUMLEY AN ANALYST AT DAIN BOSWORTH INC IN MINNEAPOLIS SAID TALK OF THE CREDIT PROVIDED A SHORT BOOST IN ORDERS FOR SOME COMPANIES BUT HAS HAD LITTLE FOLLOW THROUGH OVERALL BUSINESS REMAINS MIXED MR BRUMLEY ADDED THE MARKET FOR STANDALONE TOOLS REMAINS EXTREMELY TOUGH WHILE SOME CUSTOMERS FOR MAJOR INTEGRATED SYSTEMS MOST NOTABLY THOSE IN THE AEROSPACE INDUSTRY ARE CUTTING BACK BUT AS THE FEBRUARY ORDERS SHOW THERE'S SOME RAY OF HOPE SAID MR KREFT BOHLE'S ORDERS HAVE CLIMBED 10 TO 15 SO FAR THIS YEAR IT LOOKS AS IF THAT PERCENTAGE WILL APPLY TO THE WHOLE YEAR FROM WHERE WE SIT NOW HE SAID FOR THE INDUSTRY FEBRUARY ORDERS INCREASED 311 TO 2836 MILLION FROM 2163 MILLION A YEAR EARLIER ON A YEARTODATE BASIS ORDERS THROUGH FEBRUARY WERE UP 59 TO 4592 MILLION DOMESTIC ORDERS POSTED STRONG GAINS IN THE MONTH RISING 731 TO 2441 MILLION COMPARED WITH JANUARY AND 312 FROM FEBRUARY 1992 ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY AN INDUSTRY TRADE GROUP BUT THEY FELL 13 TO 3852 MILLION ON A YEARTODATE BASIS ORDERS FOR EXPORT POSTED WHAT WAS CONSIDERED A SURPRISING UPTICK MAINLY FROM CUSTOMERS IN MEXICO AND CHINA BUT NOT EUROPE WHICH CONTINUES TO BE HAMMERED BY A RECESSION ORDERS FOR EXPORT CLIMBED 145 TO 395 MILLION COMPARED WITH JANUARY AND 306 FROM FEBRUARY 1992 THROUGH FEBRUARY ORDERS FOR EXPORT JUMPED 705 TO 74 MILLION BUT 1992 WAS A POOR YEAR FOR ORDERS FOR EXPORT MACHINE TOOLS CUT AND FORM METAL FOR USE IN OTHER MACHINES ORDERS ARE CONSIDERED AN ECONOMIC HARBINGER BECAUSE THE MACHINE TOOLS ARE SHIPPED NINE TO 18 MONTHS LATER COMPARATIVE NEW ORDERS FOR METALCUTTING MACHINES METALFORMING MACHINE ORDERS COMPARATIVE SHIPMENT OF METALCUTTING MACHINES METALFORMING MACHINE SHIPMENTS 9303290011 930329 WHAT'S NEWS WORLDWIDE YELTSIN SURVIVED AN OUSTER VOTE BY THE LEGISLATURE AS DID HIS CHIEF RIVAL THE RUSSIAN PRESIDENT BARELY SCRAPED BY IN THE SECRET BALLOTING WHICH FOLLOWED A FAILED ATTEMPT TO REACH A COMPROMISE WITH THE SPEAKER OF PARLIAMENT A VOTE TO REMOVE KHASBULATOV MEANWHILE FELL WELL SHORT YELTSIN STILL WANTS AN APRIL 25 PLEBESCITE ON HIS LEADERSHIP EVEN THOUGH HE HAD BACKED DOWN ON THE ISSUE IN TALKS WITH KHASBULATOV WHILE MOST ATTENTION WAS FOCUSED ON THE OUSTER VOTES THE LEGISLATURE VOTED TO TAKE OVER STATE MEDIA ADMINISTRATION OFFICIALS SAID CLINTON IS CONSIDERING ASKING CONGRESS FOR AS MUCH AS 1 BILLION IN ADDITIONAL AID FOR RUSSIA TO SHOW SUPPORT FOR YELTSIN A LETTER CLAIMING RESPONSIBILITY FOR THE WORLD TRADE CENTER BOMBING MAY PROVIDE A MOTIVE FOR THE ATTACK INVESTIGATORS SAID THE NEW YORK TIMES WHICH RECEIVED THE LETTER THAT PURPORTED TO BE FROM AN ISLAMIC GROUP SAID INVESTIGATORS HAD LINKED IT TO A SUSPECT IN THE BOMBING BUT AN FBI SPOKESMAN YESTERDAY WOULDN'T CONFIRM THE LINK A CEASEFIRE APPEARED TO BE TAKING HOLD IN BOSNIA AS A RELIEF CONVOY ARRIVED IN THE BESIEGED MUSLIM ENCLAVE OF SREBRENICA MEANWHILE SECRETARY OF STATE CHRISTOPHER SAID THE US WOULD BEGIN CONSULTING WITH ALLIES SOON ABOUT LIFTING THE ARMS EMBARGO ON BOSNIA'S MUSLIMLED GOVERNMENT IF SERB LEADERS FAIL TO SIGN A UN PEACE ACCORD FRENCH CONSERVATIVE PARTIES COMPLETED A ROUT OF THE RULING SOCIALISTS IN THE SECOND ROUND OF PARLIAMENTARY ELECTIONS PROVISIONAL RESULTS SHOWED THE PARTIES WERE SET TO SWEEP MORE THAN 460 OF THE NATIONAL ASSEMBLY'S 577 SEATS THE VICTORS ARE SPLIT OVER WHETHER TO SEEK ACCOMMODATION WITH PRESIDENT MITTERRAND A PEACE PLAN FOR SOMALIA WAS APPROVED BY 15 WARRING FACTIONS THE UNBROKERED ACCORD CALLS FOR CLANS TO DISARM WITHIN 90 DAYS OUTLINES A TRANSITIONAL GOVERNMENT AND SETS ELECTIONS IN TWO YEARS ON FRIDAY THE UN APPROVED SENDING 28000 PEACEKEEPING TROOPS TO SOMALIA MAY 1 TO REPLACE THE USLED FORCE STATIONED THERE NOW ARAB DELEGATES MET IN SYRIA TO DEVISE A FORMULA THAT WOULD ALLOW THEM TO RESUME PARTICIPATION IN MIDEAST PEACE TALKS THE US WANTS TO RECONVENE IN WASHINGTON NEXT MONTH MEANWHILE PALESTINIANS IN THE OCCUPIED GAZA STRIP WERE BARRED FROM ENTERING ISRAEL FOLLOWING THE DEATH OF AN ISRAELI IN A KNIFING ATTACK BY TWO OF HIS ARAB WORKERS ASPIN UNVEILED A 263 BILLION 1994 DEFENSE BUDGET THAT DOESN'T TERMINATE ANY MAJOR WEAPONS SYSTEMS AND DEFERS MANY TOUGH SPENDING DECISIONS THE DEFENSE SECRETARY SAID SATURDAY DECISIONS ON FURTHER SPENDING CUTS WOULDN'T BE MADE UNTIL A BOTTOMUP REVIEW OF MILITARY NEEDS IS COMPLETED LATER THIS YEAR GIULIO ANDREOTTI WAS NOTIFIED HE IS UNDER INVESTIGATION BY ITALIAN AUTHORITIES FOR ALLEGED LINKS TO THE MAFIA AS WERE TWO FORMER CABINET MEMBERS AND THREE MEMBERS OF PARLIAMENT THE FORMER SEVENTIME PRIME MINISTER A CHRISTIAN DEMOCRATIC SENATOR FOR LIFE IS CONSIDERED THE BESTKNOWN POLITICIAN IN ITALY ANGOLA'S GOVERNMENT REJECTED A CALL BY UNITA REBELS FOR THE RESUMPTION OF PEACE TALKS SAYING A CEASEFIRE IN THE COUNTRY'S RENEWED CIVIL WAR MUST BE NEGOTIATED FIRST SEPARATELY THE UN SATURDAY APPROVED AN URGENT EFFORT TO GET RELIEF SUPPLIES TO HUAMBO ANGOLA'S SECONDLARGEST CITY WHICH WAS DEVASTATED IN RECENT FIGHTING LI PENG WON A SECOND FIVEYEAR TERM AS CHINA'S PREMIER BUT MORE THAN 11 OF NATIONAL PEOPLE'S CONGRESS DELEGATES VOTED AGAINST HIM OR ABSTAINED HIS WAS THE ONLY NAME PLACED IN NOMINATION THE VOTE COMPLETED A NEW GOVERNMENT LINEUP INTENDED TO AVERT A POWER STRUGGLE AFTER MEMBERS OF THE AGING OLD GUARD OF THE BEIJING REGIME DIE A SOUTH KOREAN TRAIN WRECK KILLED AT LEAST 73 PEOPLE AND INJURED 120 THE TRAIN WHICH WAS CARRYING ABOUT 700 PASSENGERS STRUCK A CAVEDIN SECTION OF TRACK IN THE SOUTHERN PORT OF PUSAN FOLLOWING AN OVERNIGHT TRIP FROM SEOUL POLICE WERE QUESTIONING UTILITY COMPANY OFFICIALS ABOUT BLASTING WORK THAT HAD BEEN GOING ON NEAR THE SITE PROSECUTORS IN NEW JERSEY STUDIED THEIR OPTIONS AFTER AN APPEALS COURT FRIDAY STRUCK DOWN THE 1988 CONVICTION OF MARGARET KELLY MICHAELS A DAYCARE WORKER ACCUSED OF SEXUALLY ABUSING CHILDREN IN HER CHARGE THE COURT'S RULING CITED MISUSE OF TESTIMONY AND QUESTIONED THE TRIAL JUDGE'S IMPARTIALITY 9303290010 930329 WESTINGHOUSE GETS JOB PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT WAS SELECTED AS PART OF A CONSORTIUM FORMED TO DEVELOP AND EXECUTE A 15YEAR PLAN MANAGING THE FORMER SOVIET UNION'S AIRSPACE NO DOLLAR ESTIMATE WAS GIVEN FOR THE CONTRACT THE GROUP'S FIRST STEP WILL BE TO MODERNIZE THE MOSCOW AIR TRAFFIC MANAGEMENT CENTER OTHER CONSORTIUM MEMBERS INCLUDE THOMPSONCSF OF FRANCE AND RUSSIAN GOVERNMENT AND INDUSTRY GROUPS 9303290009 930329 MARVEL SEES NET RISING SHARPLY OVER TWO YEARS BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEW YORK INVESTOR RONALD O PERELMAN PLANS TO CONSOLIDATE HIS MARVEL ENTERTAINMENT GROUP INC COMICBOOK HOLDINGS IN THE US AND BRITAIN AND BOOST MARVEL EARNINGS BY AN AVERAGE 50 ANNUALLY IN THE NEXT TWO YEARS MR PERELMAN'S BULLISH PLANS FOR MARVEL OF WHICH HE NOW CONTROLS 60 THROUGH HIS MACANDREWS & FORBES HOLDINGS INC COULD ALSO FORCE HIM TO RAISE THE 25ASHARE TENDER OFFER HE BEGAN FRIDAY FOR AN ADDITIONAL 20 STAKE IN THE COMIC BOOK TRADING CARD CANDY AND CHEWING GUM COMPANY ANALYSTS SUGGEST MARVEL'S PROFIT OUTLOOK WAS OUTLINED IN DOCUMENTS FOR THE TENDER OFFER FOR 11 MILLION SHARES FILED FRIDAY WITH THE SECURITIES AND EXCHANGE COMMISSION WITH SUCH A STRONG PROFIT PROJECTION NEARLY 67 GROWTH THIS YEAR AND 34 NEXT YEAR SOME LARGE STOCKHOLDERS MAY WONDER WHY THEY SHOULD TENDER THEIR SHARES AT 25 EACH ANALYSTS SUGGEST IF LARGE SHAREHOLDERS DON'T TENDER HE MAY HAVE TO ANTE UP MORE MONEY FIRST BOSTON CORP ANALYST HARRY DEMOTT SAID INDEED MR PERELMAN INDICATED HE CAN RAISE FAR MORE MONEY THAN NEEDED FOR THE TENDER OFFER MACANDREWS & FORBES SAID IT EXPECTS TO RAISE 350 MILLION FOR THE OFFER WHICH IT ESTIMATES WILL COST 285 MILLION FROM A PRIVATE PLACEMENT OF SENIOR SECURED ZERO COUPON NOTES MERRILL LYNCH & CO WHICH IS MANAGING BOTH THE TENDER OFFER AND PRIVATE PLACEMENT SAID IT IS HIGHLY CONFIDENT OF RAISING THE MONEY MACANDREW & FORBES HOWEVER SAID IT HASN'T DECIDED HOW IT PLANS TO REPAY OR REFINANCE THE NOTES IN A SURPRISE MOVE MARVEL SAID IN THE FILING THAT IT PLANS TO PAY 2 MILLION TO REPURCHASE THE BRITISH COMICBOOK OPERATION MARVEL COMICS LTD FROM MACANDREWS & FORBES THE PARENT KEPT THE BRITISH OPERATIONS WHEN IT PARTIALLY SOLD MARVEL IN A JULY 1991 PUBLIC OFFERING WHILE IT APPEARS THE BRITISH OPERATION IS JUST BREAKING EVEN MR DEMOTT NOTED MARVEL'S ROSY REVENUE AND INCOME PROJECTIONS FOR THE NEXT THREE YEARS SUGGEST MR PERELMAN PLANS TO TURN THE OPERATION AROUND WHILE ALSO STRENGTHENING HIS US BUSINESS ANY PROBLEMS HE HAD WITH HIS MARVEL HOLDINGS ARE SOLVED WITH THIS MANEUVER THE ANALYST SAID MACANDREWS & FORBES ALSO CONFIRMED IN THE SEC FILING THAT IT EXPECTS TO REAP TAX BENEFITS FROM THE DEAL MARVEL SAID IT EXPECTS PROFIT TO JUMP NEARLY 67 THIS YEAR TO 545 MILLION OR 108 A SHARE FROM 327 MILLION OR 66 CENTS A SHARE POSTED IN 1992 AN INCREASE OF 34 TO PROFIT OF 728 MILLION OR 145 A SHARE IS ANTICIPATED FOR 1994 REVENUE IS EXPECTED TO CLIMB TO 462 MILLION THIS YEAR AND 547 MILLION NEXT YEAR FROM 2238 MILLION IN 1992 PROFIT GROWTH IS THEN EXPECTED TO SLOW TO 27 IN 1995 AND 24 IN 1996 MARVEL SAID IT EXPECTS TO ACHIEVE THE NEARTERM BOOST BY INCLUDING A FULL YEAR OF INCOME FROM FLEER CORP THE TRADING CARD COMPANY IT ACQUIRED LAST YEAR AND FROM THE EXPIRATION IN DECEMBER OF AN AGREEMENT WITH SKYBOX TO LICENSE MARVEL SUPER HERO TRADING CARDS MARVEL WHICH CAN CHEAPLY PRINT THE CARDS SAID IT EXPECTS AN INCREASE IN GROSS MARGINS FROM 1994 TO 1996 PRIMARILY FROM REVENUE FROM THE NONSPORTS CARDS MARVEL ALSO HAS AGREED TO ISSUE TOY CREATOR AVI ARAD AN OPTION THAT ALLOWS HIM TO BUY ONE MILLION MARVEL SHARES AT 1950 EACH ACCORDING TO THE TENDER OFFER DOCUMENT THOSE OPTIONS RESULT FROM AN AGREEMENT ANNOUNCED LAST WEEK IN WHICH MARVEL AGREED TO INVEST ABOUT 7 MILLION IN WORKING CAPITAL FOR A 46 STAKE IN PRIVATELY HELD TOY BIZ INC THE COMPANY TO BE RENAMED NEW TOY BIZ WILL GET FROM MR ARAD CERTAIN PRODUCT LICENSES AND MR ARAD WILL GET A 10 EQUITY INTEREST WITH OPTIONS TO INCREASE THE STAKE TO 20 9303290008 930329 AUTOS NEW CAMARO STEERS TRICKY ROUTE TO WIN IMPORT BUYERS BUT KEEP MUSCLECAR FANS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL IN 1966 GENERAL MOTORS CORP SHOWED TELEVISION VIEWERS ITS NEW CAMARO SITTING IN THE MIDDLE OF WHAT LOOKED LIKE AN ERUPTING VOLCANO THE MESSAGE MUSCLECAR MACHO DURING THE OSCARS TONIGHT GM WILL LAUNCH THE LATEST VERSION OF THE CAMARO WITH A TEASER THAT DOESN'T EVEN SHOW THE SLEEK RESKINNED 1993 MODEL INSTEAD THE AD SHOWS A YOUNG MAN FOOLING AROUND WITH A ROCK STAR'S SURPRISINGLY POWERFUL ELECTRIC GUITAR A NEW CAR FROM THE COUNTRY THAT INVENTED ROCKANDROLL THE COMMERCIAL SAYS THE MESSAGE FUN WITH A PUNCH WITH A BIT OF BLUEJEAN JINGOISM IN ITS MARKETING CHEVY IS HOPING THE NEW CAMARO WILL LURE BACK TO DETROIT A GENERATION OF AMERICANS THAT HAS GROWN TO LOVE SMALL SPORTY IMPORTS BUT AT THE SAME TIME CHEVY WANTS TO RETAIN TRADITIONAL CAMARO BUYERS WHO LIKE POWERFUL US MUSCLE CARS IT WON'T BE EASY TO SERVE BOTH MARKET NICHES WITH ONE CAR IN FACT IT'S IMPOSSIBLE IN THE EYES OF FORD MOTOR CO WHICH PITCHES ITS MAZDAENGINEERED PROBE COUPE TO IMPORT BUYERS AND WILL UNVEIL A BRAND NEW MUSTANG LATE THIS YEAR FOR THE MUSCLECAR CROWD BUT CHEVY IS DETERMINED TO TRY YOU REALLY HAVE TO HAVE IT BOTH WAYS SAYS JC JIM PERKINS THE GM VICE PRESIDENT WHO RUNS CHEVROLET YOU NEED THE CURRENT CAMARO BUFF OR THE GUY WHO WANTS AN AMERICAN LOOK AND YOU NEED TO PENETRATE THAT OTHER GROUP OF YOUNGER IMPORT BUYERS AFTER SELLING THE PREVIOUS VERSION OF THE CAMARO FOR MORE THAN 10 YEARS GM HAS RESKINNED THE CAR AND ITS LOOKALIKE COUSIN THE PONTIAC FIREBIRD THE NEW LOOK ESPECIALLY FOR THE CAMARO GOES BEYOND SLEEK AND ALL THE WAY TO RAKISH THE CAMARO'S WINDSHIELD SITS AT A 68DEGREE SLOPE SO STEEP THAT WHEN A DRIVER FLIPS THE SUN VISOR DOWN THE ROAD PRACTICALLY DISAPPEARS FROM VIEW BUT THE NEW CAMARO ALSO OFFERS SOME COMMONSENSE PRACTICALITY DUAL AIRBAGS ANTILOCK BRAKES AND A SQUEEGEE BUILT IN AROUND THE DIP STICK SO THAT OWNERS DON'T HAVE TO GET THEIR HANDS DIRTY WHEN THEY CHECK THE OIL THE CAR STILL BEING BUILT ON THE DECADEOLD CHASSIS IS BEING OFFERED WITH V6 AND V8 ENGINES AND REARWHEEL DRIVE THAT'S A CONTRAST TO MOST SPORTY IMPORTED COUPS WHICH ARE TYPICALLY FRONTWHEEL DRIVE CARS POWERED BY FOURCYLINDER MULTIVALVE ENGINES THE DIFFERENCE IS VERY IMPORTANT TO CAMARO'S TRADITIONAL BUYERS WHO LOVE THE BIG POWERFUL FEEL OF MUSCLE CARS THE NEW CAMARO HAS ALL THE CHARACTERISTICS OF A HARLEYDAVIDSON SAYS LLOYD GUNDERSON A MANAGER AT A CHEVROLET DEALERSHIP IN METROPOLITAN LOS ANGELES YOU FEEL LIKE YOU'VE GOT SOMETHING UNDER YOU MR GUNDERSON LIKE MANY OF THE DEALERS WHO HAVE JUST RECENTLY BEGUN TO RECEIVE SHIPMENTS OF THE CAR IS OPTIMISTIC THAT THE CAMARO WITH A 13399 BASE PRICE WILL SELL THE CAMARO IS A HOT CAR SAYS JERRY SEINER A SALT LAKE CITY DEALER WHO WILL SOON BE CHAIRMAN OF CHEVROLET'S NATIONAL DEALER COUNCIL IT'S BRINGING PEOPLE INTO THE SHOWROOM THAT HAVEN'T BEEN IN A CHEVY DEALERSHIP FOR YEARS THE LINTASCAMPBELLEWALD AD CAMPAIGN USES THE JIMI HENDRIX SONG FIRE AND THE TAG LINE WHAT ELSE WOULD YOU EXPECT FROM THE COUNTRY THAT INVENTED ROCKANDROLL THE IDEA IS TO GIVE THE CAR A POWERFUL BUT LIGHTHEARTED IMAGE ONE AD FOR THE Z28 VERSION READS IT HAS 275 HORSEPOWER A SIXSPEED TRANSMISSION DUAL AIR BAGS AND A CUP HOLDER BIG ENOUGH TO HOLD A SLURPEE INITIALLY CHEVROLET WILL CONCENTRATE ITS MARKETING CAMPAIGN IN SUNBELT MARKETS WHERE THE CAMARO SELLS BEST GM EXPECTS THAT AFTER IT INTRODUCES A CONVERTIBLE VERSION OF THE CAR LATE THIS YEAR MOST OF THE CARS WILL BE SOLD AS EITHER TTOPS IN WHICH THE ROOF PANELS ARE REMOVABLE OR CONVERTIBLES BUT DESPITE LIMITED AVAILABILITY OF THE NEW CAMARO THIS YEAR CHEVROLET PLANS TO ROLL OUT IN MAY A NATIONAL MEDIA CAMPAIGN ON THE SCALE OF ITS GEO PRIZM CAMPAIGN LAST YEAR CHEVY SPENT JUST OVER 34 MILLION ON THOSE ADS LEADING NATIONAL ADVERTISERS INC SAYS THE CAR COMPANY HOPES THAT THE CAMARO WILL ADD SOME LUSTER TO THE CHEVROLET BRAND LAYING SOME GROUNDWORK FOR NEXT YEAR'S INTRODUCTION OF NEW VERSIONS OF THE HIGHVOLUME LUMINA AND MONTE CARLO WHICH TOGETHER ARE EXPECTED TO SELL ABOUT 300000 CARS A YEAR BY CONTRAST CHEVROLET SOLD JUST UNDER 60000 CAMAROS LAST YEAR AND IT WILL HAVE ONLY ABOUT THE SAME NUMBER AVAILABLE TO SELL THIS YEAR NEXT YEAR WHEN CAMARO PRODUCTION IS FULLY GEARED UP CHEVY HOPES TO SELL 120000 SOME SAY GM WILL FALL SHORT IT'S THE RIGHT CAR AT THE WRONG TIME SAYS DOUG KEVORKIAN AN ANALYST WITH JD POWER & ASSOCIATES WHILE MR KEVORKIAN AND HIS COLLEAGUES AT JD POWER PRAISE THE CAR FOR ITS SLEEK GOOD LOOKS THEY SAY GM IS INTRODUCING IT PRECISELY AS THE MARKET FOR SPORTY CARS IS BEGINNING TO FLATTEN CAMARO SALES WILL PEAK NEXT YEAR AT ABOUT 66000 CARS A YEAR AND THEN PETER OUT ECHOES CHRISTOPHER CEDERGREN AN ANALYST AT AUTOPACIFIC INC HE PREDICTS GM WILL LOSE MARKET SHARE IN THE SPORTY CAR SEGMENT DESPITE THE INTRODUCTION OF THE CAMARO AND ITS SLOWERSELLING TWIN THE FIREBIRD STYLE CONSCIOUS CHEVROLET CONCEDES THAT THE CAMARO WILL FACE STIFF COMPETITION FROM FORD'S NEW MUSTANG IT'S A VERY STYLECONSCIOUS SEGMENT SAYS STEVE MCAVOY CHEVROLET'S CAR MARKETING MANAGER AND SELLING TO BOTH MUSCLECAR TRADITIONALISTS AND IMPORT BUYERS ISN'T EASY JUST ASK FORD IN THE EARLY 1980S FORD ENGAGED MAZDA MOTOR CO ITS JAPANESE AFFILIATE TO DEVELOP WHAT TODAY IS THE PROBE ORIGINALLY THE CAR WAS INTENDED TO REPLACE THE CURRENT MUSTANG BUT MUSTANG FANS HOLLERED WHEN THEY GOT WIND OF THE PLAN ONE LOYALIST FIRED OFF AN ANGRY LETTER TO CAR AND DRIVER MAGAZINE COMPLAINING THAT THE MUSTANG WAS ABOUT TO GET A MAZDECTOMY FORD BACKED OFF AND KEPT THE MUSTANG FINDING A NEW NAME FOR THE MAZDADEVELOPED COUPE THERE IS A TRADITIONAL BUYER THAT IS A LITTLE BIT OLDER LOOKING FOR PERFORMANCE AND THE YOUNGER BUYER LOOKING FOR A TRENDY VEHICLE THAT'S MAYBE A LITTLE MORE EXPENSIVE SAYS BARRY A PATE A MARKETING MANAGER AT FORD FORD SAYS THE MARKETPLACE VINDICATED ITS DECISION TO SPLIT THE SPORTY COUPE SEGMENT IN TWO LAST YEAR FORD SOLD 63569 PROBES AND 86036 MUSTANGS WHILE GM SOLD 78410 CHEVROLET CAMAROS AND PONTIAC FIREBIRDS COMBINED THAT'S A BIG DROP FROM THE EARLY 1980S WHEN CHEVY SOLD MORE THAN 200000 CAMAROS ALONE IN THE PAST 10 YEARS A WIDE SELECTION OF SPORTY JAPANESE CARS HAS CHIPPED AWAY AT CHEVROLET'S DOMINANCE IN THE LOWEND SPORTY CAR MARKET BUT GM IS HOPING THAT SOME OF THOSE JAPANESE ENTRIES WILL RETREAT THERE ARE 24 COMPETITORS IN THE SEGMENT AT THE MOMENT SAYS MR MCAVOY FIFTEEN OF THEM ARE DOING LESS THAN 30000 A YEAR SOMEONE IS GOING TO HAVE TO LEAVE 9303290007 930329 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN JAPAN'S INDUSTRIAL PRODUCTION WAS ROBUST LAST MONTH BUT WITH DEMAND FEEBLE THE ECONOMIC OUTLOOK REMAINS WEAK SEASONALLY ADJUSTED OUTPUT JUMPED 19 FROM JANUARY THOUGH PART OF THE GAIN STEMMED FROM COMPANIES' EFFORTS SUCH AS AUTO PRICE CUTS TO DRESS UP THEIR RESULTS BEFORE THE END OF THE FISCAL YEAR ON WEDNESDAY THE RECOVERY SIGNAL PROMPTED A SELLOFF ON THE JAPANESE DEBT MARKET YET DESPITE RECENT HOPEFUL SIGNS SUCH AS RISING AUTO SALES AND AN IMPROVING MONEY SUPPLY THAT HAVE HELPED FUEL A RALLY IN TOKYO STOCKS A GOVERNMENT SPENDING PACKAGE TO STIMULATE THE ECONOMY IS EXPECTED TO BE HUGE THE PRODUCTION IMPROVEMENT WAS ACCOMPANIED BY A 19 RISE IN SHIPMENTS AND A HEALTHY 12 DECLINE IN INVENTORIES COMPANIES HAVE BEEN STRUGGLING TO UNLOAD EXCESS GOODS AND HAVE SLASHED CAPITAL SPENDING WHICH ACCOUNTS FOR 20 OF GROSS NATIONAL PRODUCT BUT OUTPUT WILL STAGNATE UNTIL INVENTORIES ARE REDUCED FURTHER WHICH MAY TAKE AT LEAST UNTIL MIDYEAR WEAKNESS IN JAPANESE PERSONAL SPENDING WHICH ACCOUNTS FOR 60 OF GNP REMAINS THE MAIN OBSTACLE FEBRUARY RETAIL SALES DROPPED 5 FROM A YEAR EARLIER AND JANUARY HOUSEHOLD SPENDING FELL 21 CHINA THIS YEAR WILL START TO TAX STATEOWNED AND PRIVATE BUSINESSES AT THE SAME RATE 33 IN RESPONSE TO COMPLAINTS ABOUT UNEQUAL TREATMENT THAT HAS MADE GOVERNMENT FIRMS LESS COMPETITIVE STATE COMPANIES TURN OVER MOST OF THEIR EARNINGS TO THE GOVERNMENT IN RETURN FOR READY ACCESS TO STATE FUNDS TO PAY CREDITORS BUT CHINA IN RECENT YEARS HAS CLAMPED DOWN ON SUCH BAILOUTS TAX BREAKS WILL CONTINUE FOR FOREIGNINVESTED COMPANIES ESPECIALLY THOSE THAT EARN HARD CURRENCY THROUGH EXPORTS OR THAT USE ADVANCED TECHNOLOGY THE EUROPEAN COMMUNITY COMMISSION LAUNCHED A PILOT PROGRAM FUNDED WITH 3 MILLION EUROPEAN CURRENCY UNITS 35 MILLION TO FOSTER CLOSER COOPERATION BETWEEN EC AND JAPANESE MAKERS OF CONSUMERELECTRONICS PRODUCTS AND PARTS THE FIRST PROJECT SEEKS TO IMPROVE EUROPEANS' ABILITY TO SUPPLY JAPANESE MANUFACTURERS WITH CIRCUIT BOARDS IF THE PROGRAM SUCCEEDS THE EC MAY EXTEND IT TO OTHER INDUSTRIES SOUTH KOREA WILL TRY TO ACHIEVE LONGTERM ECONOMIC GROWTH OF 7 A YEAR CONSIDERED THE OPTIMUM PACE SAID LEE KYONG SHIK DEPUTY PRIME MINISTER AND THE TOP ECONOMIC POLICY MAKER LAST YEAR'S 47 GROWTH RATE WAS THE SMALLEST SINCE 1980 MR LEE SAID THE GOVERNMENT'S NEW ECONOMYBOOSTING MEASURES WHICH SPARKED INFLATION FEARS WON'T UPSET PRICE STABILITY THE MEASURES INCLUDE A CUT IN GOVERNMENTCONTROLLED INTEREST RATES EXPANSION OF THE MONEY SUPPLY AND ACCELERATED CONSTRUCTION OF PUBLIC PROJECTS GUATEMALA'S CREDITOR GOVERNMENTS AGREED TO REORGANIZE THE CENTRAL AMERICAN COUNTRY'S DEBT THE SOCALLED PARIS CLUB OF CREDITORS ALLOWED REPAYMENT OF DEVELOPMENT AID LOANS OVER 20 YEARS AND OTHER CREDITS OVER 15 YEARS THE LENDERS DIDN'T SPECIFY THE SUMS COVERED WORLD BANK FIGURES FOR 199293 SHOW THAT GUATEMALA'S FOREIGN DEBT TOTALED 223 BILLION THE INTERNATIONAL MONETARY FUND WILL CONSIDER A SECOND ONEYEAR CREDIT AGREEMENT WITH BULGARIA IN MAY IF PARLIAMENT APPROVES A STRICT BUDGET PASSES A BANKRUPTCY LAW AND IMPOSES A 20 VALUEADDED TAX TO BOOST REVENUE AND CUT THE DEFICT AN IMF OFFICIAL SAID IN SOFIA BULGARIA'S IMF ACCORD WHICH EXPIRES THIS MONTH IS VALUED AT 560 MILLION THE 1993 BUDGET PROJECTS A DEFICIT OF 27 BILLION LEVA 721 BILLION OR 8 OF GROSS DOMESTIC PRODUCT THE 1992 GAP OF 11 BILLION LEVA EXCEEDED THE IMFNEGOTIATED LIMIT OF 5 FOREIGN DEBT TOTALS 125 BILLION BOMB EXPLOSIONS IN ATHENS DESTROYED TWO AUTOS OWNED BY TAX OFFICIALS EXTENDING THE STRING OF ATTACKS ON GREEK TAX DEPARTMENTS AND OTHER GOVERNMENT OFFICES IN RECENT WEEKS EUROPEANS MOVED THEIR CLOCKS AHEAD ONE HOUR YESTERDAY IN SWITCHING TO DAYLIGHTSAVING TIME THE US AND CANADA GO ON DAYLIGHT TIME NEXT SUNDAY 9303290006 930329 LETTERS TO THE EDITOR TRANSPLANTS HOPE AND DESPAIR THIS IS IN RESPONSE TO YOUR FEB 17 ARTICLES MEDICAL QUANDARY BREASTCANCER PATIENTS SEEKING NEW THERAPY FACE TOUGH OBSTACLES PAGE ONE AND RESEARCHERS SEEK WAYS TO CUT COST OF THE TRANSPLANTS SIDEBAR KAREN ANTMAN OF BOSTON'S DANAFARBER CANCER INSTITUTE PREDICTS PERIPHERAL BLOOD STEM CELL TRANSPLANTS WILL REPLACE CONVENTIONAL BONEMARROW TRANSPLANTS ONE DAY THEY ALREADY HAVE COMMUNITY ONCOLOGISTS WITH TRANSPLANT EXPERTISE HAVE BEEN PROVIDING STEM CELL TRANSPLANTS TO PATIENTS FOR SEVERAL YEARS IN CONCERT WITH COMPANIES SUCH AS MEMPHISBASED RESPONSE TECHNOLOGIES ADMINISTERING THIS THERAPY IN OUTPATIENT SETTINGS THE AVERAGE STEM CELL PROCEDURE COSTS BETWEEN 60000 AND 100000 COMPARED WITH NATIONAL AVERAGES OF 125000 TO 180000 FOR BONEMARROW TRANSPLANTS THE DIFFERENCE IS OUR STEM CELL PATIENTS SPEND HALF AS MUCH TIME IN THE HOSPITAL AS DO STANDARD BONEMARROW PATIENTS REFINEMENTS IN OUTPATIENT SERVICES MAY REDUCE STEM CELL COSTS FURTHER TO LESS THAN 50000 A PATIENT AS FORMER UNIVERSITY ONCOLOGISTS WITH TRANSPLANT SPECIALIZATION WHO NOW PROVIDE ONCOLOGY CARE IN COMMUNITY SETTINGS WE HAVE TREATED 25 CANCER PATIENTS WITH HIGHDOSE CHEMOTHERAPY AND STEM CELL RESCUE IN THE PAST YEAR HALF OF WHOM HAD BREAST CANCER WE EXPERIENCED NO PROCEDURERELATED MORTALITY MINIMAL MORBIDITY AND AN AVERAGE HOSPITAL STAY OF ONLY 14 DAYS OUR POSITIVE EXPERIENCE IS CONSISTENT WITH NATIONAL TRENDS AND INDICATES THE FIRSTLINE USE OF THIS TREATMENT FOR ELIGIBLE PATIENTS WILL BECOME THE STANDARD OF CARE AS DATA ARE SHARED WE ARE WITNESSING A DRAMATIC IMPROVEMENT IN OUR ABILITY TO COSTEFFECTIVELY LENGTHEN THE LIVES OF AND POSSIBLY CURE AN INCREASING NUMBER OF WOMEN WITH THIS DREAD DISEASE CANCER SPECIALISTS OF GEORGIA PC OUR 18YEAROLD DAUGHTER DIED OF HODGKIN'S DISEASE A CANCER OF THE LYMPHATIC SYSTEM IN DECEMBER 1992 BECAUSE SHE HAD A BONEMARROW TRANSPLANT IN APRIL 1992 WE READ YOUR ARTICLE WITH GREAT INTEREST OUR EXPERIENCE SUGGESTS BREASTCANCER PATIENTS ARE NOT THE ONLY ONES WHO SHOULD HAVE CONCERNS ABOUT BONEMARROW TRANSPLANTS THE EXPERIENCES OF THOSE WITH WHOM WE NETWORKED DURING OUR DAUGHTER'S TREATMENT SEEM TO SUPPORT THIS CONTENTION ONLY TWO OF THE DOZEN OR SO FELLOW TRANSPLANT PATIENTS WHOSE PROGRESS WE FOLLOWED ARE ALIVE TODAY AS CANCER PROLIFERATES AN ONCOLOGY INDUSTRY PROSPERS CERTAINLY NOT ALL ONCOLOGISTS AND ONCOLOGY TREATMENT CENTERS ARE MORE CONCERNED WITH MONEY THAN MEDICINE HOWEVER MEDICAL EXPENSES ARE CAUSING TOO MANY PATIENTS AND FAMILIES TO LOWER THEIR STANDARDS OF LIVING WHILE TOO MANY DOCTORS AND ADMINISTRATORS KEEP RAISING THEIRS DURING OUR FIRST VISIT TO THE FACILITY THAT PROVIDED OUR DAUGHTER'S BONEMARROW TRANSPLANT THE DOCTOR TOLD US THE PROCEDURE WOULD COST ABOUT 80000 SINCE THEN OUR INSURANCE COMPANY HAS PAID CLOSE TO TWICE THAT AMOUNT NOW THE HOSPITAL IS HARASSING US TO PAY HUNDREDS MORE FOR CHARGES THAT OUR INSURANCE COMPANY STATES EXCEED THE USUAL AND CUSTOMARY REIMBURSEMENT FOR SUCH SERVICES OR SUPPLIES ALL THIS IS FOR A PROCEDURE THAT TURNED MY DAUGHTER'S BODY INTO AN AUSCHWITZ CLONE CAUSED HER TO VOMIT BLOOD AND BILE ROUTINELY AND DID NOTHING FOR HER CANCER TO DEMAND THAT WE PAY A LITTLE MORE THAN 1 MORE TO COVER OVERCHARGES IS NOT ONLY GREEDY BUT CALLOUS AND INSULTING IT IS CALLOUS BECAUSE THE EFFECTS OF THE TREATMENT MAY HAVE CONTRIBUTED TO OUR DAUGHTER'S DEATH IT IS INSULTING BECAUSE JUST AFTER OUR DAUGHTER ENDED TREATMENT WE ENCOURAGED THE HIGH SCHOOL BAND THAT SHE PLAYED FOR TO CONDUCT A FUNDRAISER FOR THE HOSPITAL AS A GESTURE OF GRATITUDE OF COURSE THAT WAS WHEN WE ASSUMED THAT THE TREATMENT HAD PROVIDED SOME BENEFIT AND THAT OUR BILL WOULD NOT EXCEED THE REQUIRED DEDUCTIBLE AND COPAYMENTS IN RETROSPECT THE EMOTIONAL STRESS DURING OUR DAUGHTER'S ILLNESS BLURRED OUR DECISIONMAKING ABILITY EVEN THOUGH WE DID NOT ASK THE HOSPITAL OR REFERRING ONCOLOGIST COULD HAVE PROVIDED MORE DATA ABOUT THE EFFICACY OF THE TREATMENT IN GENERAL AND THE SUCCESS RATE OF THAT HOSPITAL IN PARTICULAR PATIENTS AND THEIR FAMILIES SHOULD NOT HAVE TO WAIT YEARS FOR REPORTS FULL OF MEDICAL JARGON TO OBTAIN BASIC STATISTICS WE ULTIMATELY MAY AGREE TO BE GUINEA PIGS IN A DESPERATE ATTEMPT TO STAY ALIVE BUT BEFORE WE FINALIZE THAT DECISION WE NEED MORE INFORMATION ABOUT THE GUINEA PIGS WHO WENT BEFORE US EVEN IF SUCH DISCLOSURE MAY NEGATIVELY AFFECT THE CASH FLOW OF THE WOULDBE PROVIDER 9303290005 930329 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ASHLAND OIL INC AN OFFERING OF FIVE MILLION SHARES OF CUMULATIVE CONVERTIBLE PREFERRED STOCK DIME SAVINGS BANK OF NEW YORK A PROPOSED RIGHTS OFFERING INTENDED TO RAISE UP TO 182 MILLION NATIONAL HOME CENTERS INC A PROPOSED OFFERING OF 1700000 SHARES VIA AG EDWARDS & SONS INC RELIANCE ELECTRIC CO A SHELF OFFERING FOR UP TO 200 MILLION PRINCIPAL AMOUNT OF DEBT SECURITIES VIA GOLDMAN SACHS & CO AND PRUDENTIAL SECURITIES INC YOUNKERS INC AN OFFERING OF 22 MILLION COMMON SHARES VIA GOLDMAN SACHS AND DEAN WITTER REYNOLDS INC 9303290004 930329 REAL ESTATE BY MITCHELL PACELLE RAPID GROWTH IN HOMEEQUITY LENDING SLOWED ALMOST TO A HALT LAST YEAR LARGELY BECAUSE OF A WAVE OF MORTGAGE REFINANCINGS THE TOTAL OF HOMEEQUITY LOANS OUTSTANDING AT THE END OF LAST YEAR ROSE JUST 1 FROM A YEAR EARLIER TO 279 BILLION ACCORDING TO SMR RESEARCH BUDD LAKE NJ IN THE PREVIOUS SEVERAL YEARS THE MARKET HAD GROWN AN AVERAGE OF 10 ANNUALLY SPURRED MAINLY BY HOMEOWNERS SEEKING A TAX BREAK AS THE DEDUCTION FOR OTHER CONSUMER DEBT WAS PHASED OUT LAST YEAR HOWEVER LOW MORTGAGE RATES PROMPTED A RECORD FOUR MILLION HOMEOWNERS TO REFINANCE THEIR FIRST MORTGAGES IN MANY CASES THAT PREEMPTED HOMEEQUITY LOANS PEOPLE ARE BORROWING ON THEIR FIRST MORTGAGE AND TAKING CARE OF ALL THEIR FINANCING NEEDS RIGHT THERE SAYS GEORGE YACIK SMR VICE PRESIDENT MOREOVER MANY HOMEOWNERS HAD TO PAY OFF ALL EXISTING HOME DEBT INCLUDING HOMEEQUITY LOANS IN ORDER TO REFINANCE THEIR MORTGAGES ALL OF THE BANKS EXPERIENCED DRAMATIC GROWTH OF HOMEEQUITY LENDING IN THE '80S SAYS PEYTON PATTERSON HEAD OF CONSUMER LENDING AT CHEMICAL BANKING CHEMICAL HAD EXPECTED A SLIGHT DECLINE IN HOMEEQUITY LENDING LAST YEAR DUE TO REFINANCINGS AND CONSUMER EFFORTS TO GET OUT OF DEBT MS PATTERSON SAYS CHEMICAL POSTED A 4 INCREASE IN HOMEEQUITY LOANS BUT ONLY BY LURING BORROWERS AWAY FROM OTHER BANKS BANKS HOWEVER DON'T ANTICIPATE A LASTING DRAG ON THE HOMEEQUITY MARKET CONSUMERS MAY BE EAGER TO PRUNE DEBT BUT WITH BABY BOOMERS GETTING OLDER THEY'LL NEED TO FINANCE THEIR KIDS' EDUCATIONS AND THEIR PARENTS' HEALTH CARE SAYS SMR'S MR YACIK THE FACT IS HOMEEQUITY LOANS REMAIN THE LOWESTCOST SOURCE OF BORROWED FUNDS FOR CONSUMERS OTHER THAN THEIR FIRST MORTGAGES EVEN PEOPLE WHO BORROWED AS MUCH AS THEY COULD WHEN THEY REFINANCED WILL QUALIFY FOR SECOND MORTGAGES ONCE THEIR HOMES BEGIN TO GROW IN VALUE AGAIN MR YACIK ADDS NEW YORK'S DEPRESSED OFFICE LEASING MARKET IS SHOWING TENTATIVE SIGNS OF RECOVERY BUT ONLY IN A LIMITED SEGMENT IN MIDTOWN MANHATTAN THE INVENTORY OF FIRSTCLASS OFFICE SPACE AVAILABLE FOR RENT SHRANK BY ABOUT TWO MILLION SQUARE FEET LAST YEAR THE FIRST DROP SINCE 1988 REPORTS EDWARD S GORDON & CO A BROKERAGE FIRM IF I WERE A 300000 TO 500000SQUAREFOOT USER I'D HAVE FEW CHOICES IN MIDTOWN SAYS STEVEN SIEGEL THE FIRM'S PRESIDENT WITH A STRONG ECONOMY AND A CONTINUATION OF LEASING ACTIVITY SOMEONE IS EVEN GOING TO START TALKING ABOUT BUILDING A NEW BUILDING BY THE END OF NEXT YEAR NOBODY EXPECTS A CITYWIDE RECOVERY VACANCIES IN DOWNTOWN MANHATTAN ARE STILL RISING AND OLDER BUILDINGS ARE LOSING TENANTS BUT IN MIDTOWN MANHATTAN A PREFERRED HEADQUARTERS ADDRESS FOR MANY COMPANIES LARGE BLOCKS OF SPACE IN FIRSTCLASS BUILDINGS ARE BECOMING A BIT MORE SCARCE THERE'S A CONTINUING FLIGHT TO QUALITY SAYS RICHARD DONOHUE HEAD OF THE NEW YORK OFFICES OF CUSHMAN & WAKEFIELD A NATIONAL BROKERAGE FIRM THE VACANCY RATE IN FIRSTCLASS MIDTOWN BUILDINGS FELL TO 163 LAST YEAR FROM A PEAK OF 172 IN 1990 WHILE VACANCIES IN OLDER BUILDINGS ROSE TO 201 FROM 168 ACCORDING TO CUSHMAN & WAKEFIELD LESS THAN TWO YEARS AGO SEVERAL BIG NEW BUILDINGS SAT EMPTY AND OTHERS HAD HUGE BLOCKS OF AVAILABLE SPACE GRADUALLY LARGE USERS HAVE BEEN MOVING IN SONY LEASED A BUILDING BEING VACATED BY AMERICAN TELEPHONE & TELEGRAPH BERTELSMANN THE GERMAN MEDIA CONGLOMERATE PURCHASED A VACANT 44STORY TIMES SQUARE OFFICE BUILDING FOR 119 MILLION FROM CITICORP THE BIGGEST REMAINING BLOCK OF MIDTOWN SPACE NEARLY SOLD LAST MONTH PRIMERICA HAD SIGNED A LETTER OF INTENT TO BUY A MOSTLY EMPTY 13 MILLIONSQUAREFOOT OFFICE BUILDING AT 1585 BROADWAY FOR ABOUT 150 MILLION FROM A BANK GROUP ACCORDING TO A PERSON FAMILIAR WITH THE DEAL BUT THE COMPANY BACKED OUT AFTER AGREEING TO BUY THE BROKERAGE OPERATION OF SHEARSON LEHMAN BROTHERS THOUGH MANY OF THE NATION'S LARGEST INSURANCE COMPANIES ARE LIQUIDATING REALESTATE LOANS AND INVESTMENTS SOME INSURERS THAT WEREN'T BIG LENDERS IN THE 1980S ESPECIALLY MIDSIZED COMPANIES ARE MAKING NEW LOANS THIRTYSIX OF 44 MIDSIZED LIFEINSURANCE COMPANIES SURVEYED RECENTLY BY THE MORTGAGE BANKERS ASSOCIATION SAID THEY EXPECTED TO MAKE REALESTATE LOANS THIS YEAR THEY HAVE SET LENDING TARGETS FOR THIS YEAR TOTALING 46 BILLION UP 24 FROM 37 BILLION LOANED LAST YEAR THE GROWING INTEREST STEMS IN PART FROM STABILIZING VACANCY RATES FOR CERTAIN PROPERTY TYPES AND A GREATER YIELD SPREAD BETWEEN COMMERCIAL MORTGAGES AND OTHER LONGTERM INVESTMENTS THE BANKERS GROUP SAYS LENDERS ALSO SAY THEY ARE PROTECTING THEMSELVES WITH MORE CONSERVATIVE UNDERWRITING THAN IN THE '80S MOREOVER RIGHT NOW THERE ARE OPPORTUNITIES WE HAVEN'T SEEN IN 30 TO 40 YEARS SAYS DENNIS FRANCIS VICE PRESIDENT OF COMMERCIAL REAL ESTATE FOR PRINCIPAL FINANCIAL GROUP A DES MOINES IOWA INSURER THAT MADE 125 BILLION IN REALESTATE LOANS LAST YEAR UP FROM 11 BILLION IN 1991 MR FRANCIS NOTES THAT SOME PROPERTIES ARE SELLING FOR HALF OF REPLACEMENT COST AND THAT HIS COMPANY CAN LEND MONEY AT ABOUT 25 PERCENTAGE POINTS OVER GOVERNMENT BOND RATES COMPARED WITH ONLY A ONEPOINT DIFFERENCE IN THE LATE 1980S TO SERVE ITS BANKING AND MORTGAGECOMPANY CLIENTS FINK WEINBERGER A WHITE PLAINS NY LAW FIRM HAS OUTFITTED A MOBILE HOME TO SERVE AS A MOBILE OFFICE FOR CLOSING RESIDENTIAL MORTGAGE LOANS FIRSTCLASS OFFICE SPACE IN WASHINGTON DC RENTS FOR AN AVERAGE OF 3350 A SQUARE FOOT THE HIGHEST IN THE NATION WHILE MEMPHIS TENN IS THE CHEAPEST AT 1265 ACCORDING TO A 36CITY SURVEY BY COLLIERS INTERNATIONAL A REALESTATE SERVICES COMPANY IN BOSTON 9303290003 930329 HEARD ON THE STREET APPLE COMPUTER STOCK A DARLING OF THE '80S MAY FIND ROCKY ROAD AHEAD SOME BELIEVE BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ANOTHER WHIZBANG TECHNOLOGY STOCK OF THE 1980S MAY BE HEADED FOR HARD TIMES THAT'S WHAT A GROWING NUMBER OF STOCK ANALYSTS AND MONEY MANAGERS ARE SAYING ABOUT APPLE COMPUTER THE COMPANY THAT ROSE TO PROMINENCE A DECADE AGO IN THE PERSONAL COMPUTING INDUSTRY IN THE SHORT RUN SOME BIG MONEY MANAGERS BELIEVE APPLE'S EARNINGS FOR THE SECOND QUARTER ENDING THIS MONTH WILL BE LOWER THAN EXPECTED BECAUSE OF DISAPPOINTING SALES THAT BELIEF HAS LED SOME BIG INVESTORS SUCH AS MUTUAL FUND COMPANY FIDELITY INVESTMENTS TO SELL LARGE PARTS OF THEIR APPLE HOLDINGS ON THE GROUND THAT A POOR QUARTER MAY MEAN A FURTHER SELLOFF IN THE STOCK TO BE SURE APPLE'S STOCK COULD REBOUND ONCE THE QUARTER'S NEWS IS OUT OF THE WAY SPRING ISN'T A GREAT TIME OF YEAR FOR TECHNOLOGY STOCKS ANYWAY BUT A SMALLER NUMBER OF ANALYSTS AND INVESTORS SEE LONGERTERM CLOUDS ON THE HORIZON TOO THE MOST BEARISH BELIEVE THAT APPLE'S EARNINGS MAY HEAD DOWN THROUGH THE END OF THIS YEAR AND THE FIRST HALF OF 1994 AS APPLE FEELS INCREASED PRESSURE TO CUT PRICES ON ITS MACINTOSH COMPUTERS TO MAINTAIN ITS ROUGHLY 15 MARKET SHARE IN THE US THOMAS T ROONEY OF DONALDSON LUFKIN & JENRETTE EVEN BELIEVES THAT THERE ARE SIMILARITIES BETWEEN APPLE AND INTERNATIONAL BUSINESS MACHINES ANOTHER CORPORATE STAR OF THE 1980S THAT HAS HAD WELLPUBLICIZED TROUBLES LATELY MR ROONEY WHO BEEN TELLING CLIENTS THE STOCK SHOULD BE SOLD ON ANY STRENGTH SAYS APPLE IS SUFFERING FROM THE SAME STODGINESS THAT LED TO IBM'S FALL FROM GRACE IBM'S BIGGEST PROBLEM WAS THAT FORMER CHAIRMAN JOHN AKERS DIDN'T CHANGE THE COMPANY'S BUSINESS MODEL AS THE WORLD CHANGED I WOULD ARGUE THAT APPLE IS IN THE SAME SITUATION THE SOFTWARE INDUSTRY HAS DEVELOPED LARGELY AROUND LESSEXPENSIVE IBMCOMPATIBLE PRODUCTS WHICH ARE GETTING EASIER TO USE AND INSTALL HE SAYS YET HE SAYS APPLE IS BANKING ON BEING ABLE TO CONTINUE TO CHARGE CUSTOMERS A ROUGHLY 15 TO 20 PREMIUM FOR SOME OF ITS PROPRIETARY MACINTOSH HARDWARE AND SOFTWARE PACKAGE AS A RESULT HE THINKS EARNINGS MAY FALL AS LOW AS 370 A SHARE THIS FISCAL YEAR MOST ANALYSTS ARE CALLING FOR EARNINGS OF 440 TO 450 FOR FISCAL 1992 ENDED IN SEPTEMBER APPLE EARNED 433 A SHARE LATELY SOME OF THE PRICE COMPETITION IN THE PERSONAL COMPUTING INDUSTRY HAS TAKEN ITS TOLL ON APPLE'S EARNINGS IN THE FIRST QUARTER ENDED DEC 31 REVENUE INCREASED ONLY 7 TO 2 BILLION ALTHOUGH MACINTOSH UNIT SHIPMENTS JUMPED 31 THAT REPORT IS A SIGN THAT APPLE MAY HAVE BEEN COMPELLED TO CUT PRICES ON ITS MACINTOSH MODELS EVEN FASTER IN RECENT MONTHS TO MEET ITS GOAL OF REVENUE GROWTH OF 12 TO 15 MR ROONEY SAID SUCH PRICE CUTTING COULD LOWER PROFIT MARGINS AS A RESULT MR ROONEY HAS LOWERED HIS EARNINGS ESTIMATE FOR THE SECOND QUARTER TO 90 CENTS A SHARE THREE OTHER ANALYSTS ALSO RECENTLY LOWERED THEIR ESTIMATES FOR APPLE'S MARCH QUARTER EARNINGS WITH EACH OF THEIR ESTIMATES FALLING IN THE RANGE OF 88 CENTS TO 91 CENTS FIDELITY'S HARRY LANGE A COMPUTER ANALYST AND PORTFOLIO MANAGER OF THE 50 MILLION SELECT COMPUTER FUND SAYS HE SOLD THE FUND'S ROUGHLY 25 MILLION OF APPLE STOCK ABOUT A MONTH AGO BECAUSE HE IS EXPECTING APPLE TO REPORT DISAPPOINTING FISCAL SECONDQUARTER RESULTS NEXT MONTH HE SAID THE MAJORITY OF FIDELITY PORTFOLIO MANAGERS ALSO SOLD LARGE AMOUNTS OF THEIR APPLE HOLDINGS IN RECENT WEEKS AFTER APPLE STOCK HAS ABSORBED THE BAD NEWS HE AND OTHERS ARE EXPECTING MR LANGE SAYS HE IS PLANNING ON BUYING MOST OF THAT STOCK BACK NOW I'M LOOKING FOR THE RIGHT CHANCE TO BUY HE SAYS APPLE TRADES AT 12 TIMES THE PAST YEAR'S EARNINGS MR LANGE BELIEVES THAT ANY DECLINE IN EARNINGS WILL BE SHORTLIVED I'M FAIRLY OPTIMISTIC ABOUT THE JUNE QUARTER HE SAYS HE'S CURRENTLY DOWN ON THE STOCK BECAUSE HE BELIEVES THE COMPANY'S SALES WILL SUFFER TEMPORARILY FROM A BACKLOG OF ORDERS FOR NEW PRODUCTS INCLUDING NEW HANDHELD PRODUCTS WHICH IT HASN'T BEEN ABLE TO SHIP OUT QUICKLY ENOUGH TO MEET DEMAND APPLE DECLINES TO ELABORATE ON ITS EARNINGS OUTLOOK OTHERS ARE TAKING A WAITANDSEE STANCE ON THE COMPANY'S LONGTERM PROSPECTS I BELIEVE THE COMPANY IS AT A CROSSROADS SAYS JOHN RUTLEDGE VICE PRESIDENT AT BOSTON MONEY MANAGER LOOMIS SAYLES PEOPLE WILL LOOK VERY CLOSELY AT THIS QUARTER INVESTORS WILL BE LOOKING FOR CLUES MR RUTLEDGE SAYS AS TO WHETHER THE COMPANY CAN CONTINUE TO COMPETE IN PERSONAL COMPUTING AT A TIME WHEN MUCH OF THE SOFTWARE BEING DEVELOPED IS FOR MACHINES MADE BY RIVAL COMPANIES REPRESENTING 85 OF THE MARKET MR ROONEY IS LESS SANGUINE HE BELIEVES APPLE'S EARNINGS WILL CONTINUE TO SUFFER AS THE COMPANY CUTS PRICES TO HIT ITS GOALS OF REVENUE INCREASES OF AT LEAST 12 ULTIMATELY HE SAYS HE BELIEVES APPLE WILL CHART ITS FUTURE BY ACQUIRING SOFTWARE COMPANIES AFTER SOME REAL PAIN HE SAYS THEY'LL GET AGGRESSIVE AND START ACQUIRING YEAR ENDED SEPT 25 1992 FIRST QUARTER DEC 25 1992 9303290002 930329 BUSINESS BRIEF PANCHO'S MEXICAN BUFFET INC PERSHARE NET IS EXPECTED TO FALL IN CURRENT QUARTER THE RESTAURANT CHAIN SAID IT EXPECTS TO REPORT NET INCOME FOR THE PERIOD ENDING WEDNESDAY OF 525000 TO 600000 OR 12 CENTS TO 13 CENTS A SHARE COMPARED WITH 767000 OR 18 CENTS A SHARE A YEAR EARLIER THE COMPANY BLAMED THE DECLINE ON INCREASED COSTS ASSOCIATED WITH ADDING A SOUP SALAD AND DESSERT BAR IN 29 OF ITS 66 RESTAURANTS AND ON SLOW SALES IN RESTAURANTS THAT AREN'T USING THE NEW FORMAT THE CHAIN SAID SALES AT THE UPGRADED OUTLETS HAVE INCREASED 10 TO 20 IT SAID IT PLANS TO OPEN FOUR ADDITIONAL RESTAURANTS BY THE END OF THE FISCAL YEAR SEPARATELY PANCHO'S SAID ITS BOARD APPROVED A STOCK BUYBACK OF UP TO 500000 COMMON SHARES FROM TIME TO TIME ON THE OPEN MARKET THE COMPANY SAID THE SHARES WOULD EITHER BE RETIRED AS TREASURY STOCK OR USED FOR GENERAL CORPORATE PURPOSES 9303290001 930329 BUSINESS BRIEF FINMECCANICA SPA GROUP REPORTS NET PROFIT OF 1163 MILLION FOR 1992 FINMECCANICA SPA AN ITALIAN STATECONTROLLED ENGINEERING GROUP SAID CONSOLIDATED NET PROFIT AMOUNTED TO 1864 BILLION LIRE 1163 MILLION IN 1992 AGAINST A LOSS OF 525 BILLION LIRE IN 1991 THE YEAREARLIER LOSS WAS DUE TO EXTRAORDINARY CHARGES WITHOUT THESE CHARGES FINMECCANICA SAID IT POSTED AN 11 INCREASE IN NET PROFIT THE EXTRAORDINARY CHARGES IN 1991 STEMMED FROM A EUROPEAN COMMUNITY RULING THAT FINMECCANICA PAY BACK STATE SUBSIDIES RECEIVED IN THE 1980S FOR ITS AILING CAR SUBSIDIARY ALFA ROMEO SPA FINMECCANICA SOLD ALFA ROMEO TO FIAT SPA IN 1987 FINMECCANICA OBTAINED A STOCK LISTING LAST YEAR FOLLOWING THE INCORPORATION INTO ITS QUOTED FINANCIAL SERVICES SUBSIDIARY SIFA SPA IT IS CURRENTLY 96 OWNED BY THE GIANT STATE HOLDING ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE 9303260202 930326 FOREIGN EXCHANGE DOLLAR IS HIGHER BUT FALLS AGAINST YEN AS UNCERTAINTY CAUSES RANGE TRADING BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH FEW NEW CLUES ON WHAT DIRECTION THE DOLLAR IS GOING TO TAKE THE FOREIGNEXCHANGE MARKET LEFT THE US CURRENCY TO CHURN IN TRADING RANGES NUDGED BACK AND FORTH BY TECHNICAL AND SPECULATIVE PRESSURES THE DOLLAR MANAGED TO GAIN AGAINST EUROPEAN CURRENCIES BUT SLIPPED AGAINST THE YEN LATE IN NEW YORK THE DOLLAR WAS AT 16423 MARKS UP FROM 16375 MARKS LATE WEDNESDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 11730 YEN DOWN FROM 11760 YEN STERLING WAS TRADING AT 14745 DOWN FROM 14775 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 16425 MARKS AND AT 11685 YEN DEALERS ATTRIBUTED THE DOLLAR'S MODEST GAIN AGAINST THE MARK TO SPECULATORS BUYING DOLLARS TO COVER BETS THAT THE US CURRENCY WOULD DECLINE THEY POINTED OUT HOWEVER THAT THE DOLLAR GOT LITTLE BENEFIT FROM THE BUYING AND SLIPPED BACK FROM THE DAY'S HIGHS NAGGING DOUBTS ABOUT THE ECONOMIC FUNDAMENTALS BACKING THE DOLLAR ALONG WITH UNCERTAINTIES ABOUT WHAT EFFECT RUSSIA'S CONTINUING POLITICAL CRISIS WILL HAVE ON THE FOREIGNEXCHANGE MARKET GIVE PARTICIPANTS LITTLE INCENTIVE TO ACT DEALERS SAID AND YESTERDAY BROUGHT MORE NEWS TO UNDERLINE CONCERNS THAT THE PACE OF US ECONOMIC RECOVERY AND GERMAN MONETARY EASING WON'T BE AS FAST AS DOLLAR BULLS HAD HOPED THE US LABOR DEPARTMENT SAID FIRSTTIME CLAIMS FOR STATE UNEMPLOYMENT INSURANCE FELL 2000 LAST WEEK BROADLY IN LINE WITH MARKET EXPECTATIONS BUT DEALERS NOTED THAT THE WEEKLY TOTAL CLAIMS FIGURE HAS HELD STUBBORNLY AROUND 350000 FOR THE PAST SEVERAL WEEKS FRUSTRATING HOPES THE LABOR MARKET WOULD PICK UP A REPORT ON THE US HOUSING MARKET ALSO WAS DISAPPOINTING TO DOLLAR BULLS DEALERS SAID SALES OF NEW SINGLEFAMILY HOMES SLUMPED 61 IN FEBRUARY THE NATIONAL ASSOCIATION OF REALTORS SAID ALTHOUGH THE MARKET'S RESPONSE TO THESE REPORTS WAS MUTED THEY ILLUSTRATE THE PRECARIOUS STATE OF THE US RECOVERY DEALERS SAID THE OTHER SUPPORT FOR THE DOLLAR EXPECTATIONS GERMAN INTEREST RATES ARE HEADING LOWER ALSO CAME FURTHER INTO QUESTION DEALERS SAID THE DOLLAR JUMPED EARLY IN EUROPEAN TRADING AFTER THE BUNDESBANK SAID IT CUT A MONEY MARKET RATE BUT THEN IT GAVE UP MOST OF THE GAINS AS PARTICIPANTS DISMISSED THE MOVE AS LARGELY TECHNICAL THE BUNDESBANK'S KEY MONEY MARKET RATE WAS UNCHANGED AT THE CENTRAL BANK'S WEEKLY REFINANCING OPERATION WEDNESDAY LOUIS RAPPAPORT FOREIGN EXCHANGE MANAGER AT SOCIETE GENERALE SAID A SERIES OF COMMENTS LATE WEDNESDAY FROM BUNDESBANK CHIEF ECONOMIST OTMAR ISSING EMPHASIZING THE NEED FOR A STRONG MARK AND CONTINUING CONCERN ABOUT GERMANY'S INFLATION RATE FUELED DOUBTS ABOUT JUST HOW SOON THE BUNDESBANK WILL CUT RATES AGAIN THE CENTRAL BANK CUT ITS DISCOUNT RATE HALF A POINT TO 75 A WEEK AGO THUS THE COMBINATION OF WEAKNESS IN THE US ECONOMY AND BUNDESBANK RECALCITRANCE ON LOWERING INTEREST RATES HELPED DETER AGGRESSIVE DOLLAR BUYING DEALERS SAID THE MARKET AT THIS POINT ISN'T READY TO TAKE ON ANY HEAVY RESISTANCE TO THE DOLLAR SAID ERIK LEHTIS A VICE PRESIDENT AT CREDIT AGRICOLE CNCA AT THE SAME TIME DEALERS SAID THE APPARENT EASING OF POLITICAL TENSIONS IN RUSSIA DIDN'T ENCOURAGE DOLLAR SELLERS AS SOME MIGHT HAVE EXPECTED THE SITUATION IN RUSSIA APPEARED TO COOL DOWN WHEN THE MAIN OPPONENT OF PRESIDENT BORIS YELTSIN BACKED DOWN FROM CALLS FOR THE RUSSIAN LEADER'S OUSTER DAVE GLOWACKI SENIOR TRADER AT NATIONAL BANK OF DETROIT SAID THAT BECAUSE TURMOIL IN RUSSIA TYPICALLY LEADS INVESTORS TO SEEK SHELTER IN THE DOLLAR YESTERDAY'S EVENTS MIGHT HAVE LED PARTICIPANTS TO PULL BACK INSTEAD HE SAID THE MARKET SHOWED NO CLEAR REACTION 9303260201 930326 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN JAPANESE LAND PRICES LAST YEAR FELL AN AVERAGE OF 114 FOR COMMERCIAL SITES AND 87 FOR RESIDENTIAL PLOTS STEEPENING FROM YEAREARLIER DECLINES OF 4 AND 56 RESPECTIVELY BUT INDUSTRY OFFICIALS SAID THE SLUMP MAY HAVE BOTTOMED OUT THE NATIONWIDE FIGURES FOR COMMERCIAL LAND WERE DRAGGED DOWN BY A 19 PRICE PLUNGE IN THE METROPOLITAN AREAS OF TOKYO OSAKA AND NAGOYA WHERE RESIDENTIAL PRICES SAGGED 15 RESIDENTIAL PRICES IN CENTRAL TOKYO HAVE PLUMMETED MORE THAN 50 FROM THEIR PEAK IN LATE 1987 AND THE TREND HAS SPREAD INTO THE SUBURBS BUT IN OTHER REGIONS LAST YEAR DROPS WERE A RELATIVELY SMALL 56 FOR COMMERCIAL AND 17 FOR RESIDENTIAL PRICES MANY INDUSTRY EXECUTIVES SAID THE MARKET DOESN'T EXPECT FURTHER DECREASES THE GOVERNMENT WANTS TO DRIVE PRICES BELOW THE EQUIVALENT OF FIVE YEARS' PAY FOR THE AVERAGE SALARIED WORKER MANY CONDOMINIUM PRICES HAVE FALLEN TO SUCH LEVELS TO DEFUSE A FINANCIAL CRISIS CAUSED BY EXCESS OUTPUT AND WORKERS THE EUROPEAN STEEL INDUSTRY MUST SLASH 70000 JOBS FAR MORE THAN INITIAL ESTIMATES OF 50000 AND CUT 50 MILLION TONS OF CAPACITY RATHER THAN 30 MILLION EUROPEAN COMMUNITY OFFICIALS SAID MEANWHILE 75000 GERMAN STEELWORKERS HEADED FOR BONN TO PROTEST JOB LOSSES THE IG METALL UNION STILL WANTS THE EC TO SET PRODUCTION QUOTAS AND MINIMUM PRICES BUT GERMAN AND EC OFFICIALS OPPOSE POLITICAL INTERVENTION INTO THE MARKET THE CONFEDERATION OF BRITISH INDUSTRY PREDICTED THE COUNTRY'S ECONOMY WILL GROW 14 THIS YEAR AND 24 NEXT YEAR THE GOVERNMENT MEANWHILE HAS FORECAST A 125 RISE IN GROSS DOMESTIC PRODUCT THIS YEAR GDP FELL 05 LAST YEAR IN A RECESSION WHICH THE EMPLOYER GROUP SAID APPEARS INCREASINGLY TO BE DRAWING TO A CLOSE THE GROUP SAID THAT CONSUMER SPENDING AND INVESTMENT HAVE HELD UP BETTER THAN ANTICIPATED AND THAT SIGNS FOR GREATER RETAIL SALES EXPORTS AND NORTH SEA OIL OUTPUT ARE ENCOURAGING STILL DETERIORATION OF SOME OVERSEAS MARKETS POSES PITFALLS FOR EXPORTERS IN BRITAIN THE CZECH REPUBLIC OPENED AN AGENCY TO SMOOTH TRADE CONTACTS AND ENCOURAGE FOREIGN INVESTMENT THE GOVERNMENTSPONSORED CZECHINVEST AIMS TO ACQUAINT FOREIGN BUSINESSES WITH OPPORTUNITIES SUCH AS PRIVATIZATION CANDIDATES AND TO FIND SUITABLE PARTNERS CZECHINVEST REPLACED THE FEDERAL AGENCY FOR FOREIGN INVESTMENT WHICH AN OFFICIAL SAID WAS LESS THAN SUCCESSFUL FOREIGN INVESTMENT BETWEEN NOVEMBER 1989 WHEN THE CZECHOSLOVAK REGIME WAS OVERTHROWN AND THE END OF LAST YEAR TOTALED 218 BILLION THE CZECH REPUBLIC BECAME INDEPENDENT JAN 1 TO CALM A POLITICAL REBELLION OVER PLANS TO CLOSE COAL MINES BRITAIN SAID THAT THE SECTOR WILL BE PREPARED FOR PRIVATIZATION IMMEDIATELY AND THAT 12 OF THE 21 PITS STILL OPERATING WILL REMAIN OPEN THE PROPOSALS WHICH GO TO PARLIAMENT FOLLOWED AN INDUSTRY REVIEW BEGUN LATE LAST YEAR AFTER THE GOVERNMENT WAS FORCED TO BACK DOWN FROM PLANS FOR BRITISH COAL CORP TO SHUT 31 UNPROFITABLE MINES AND THROW 30000 PEOPLE OUT OF WORK TEN MINES WERE CLOSED ELIMINATING 10000 JOBS OF THE NINE PITS TO BE SHUT UNDER THE LATEST PLAN TWO WILL BE CLOSED PERMANENTLY SIX MOTHBALLED AND ONE LEFT FOR DEVELOPMENT IN THE NEXT CENTURY THE SELLOFF PROGRAM IS AIMED AT CREATING COMPETITIVE ENERGY MARKETS TAHITI'S DANCERS A SOUTH PACIFIC TOURISM ATTRACTION WENT ON STRIKE THE MALE AND FEMALE DANCERS AND THEIR MUSICIANS WHO FORMED A UNION LAST YEAR ARE PAID 300 FOR AN EVENING PERFORMANCE THEY WANT 400 SHUTTLE TRAINS THAT WILL CONNECT BRITAIN AND FRANCE THROUGH THE ENGLISH CHANNEL TUNNEL GOT A MASCOT MARCUS THE MOLE THE CARTOON CHARACTER WILL LEAD A 296 MILLION PROMOTION RANGING FROM TOYS AND BOOKS TO A TELEVISION SERIES OF LE SHUTTLE A TRANSPORT SERVICE FOR CARS AND TRUCKS THAT IS TO START IN DECEMBER 9303260200 930326 WHO'S NEWS GAMMA INTERNATIONAL LTD GAMMA INTERNATIONAL LTD BILLERICA MASS THIS LOTTERYPRODUCTS CONCERN SAID IT NAMED ALFRED J LUCIANI PRESIDENT CHIEF EXECUTIVE AND A DIRECTOR MR LUCIANI 47 YEARS OLD IS THE FORMER PRESIDENT AND CHIEF EXECUTIVE OF THE FOXWOODS CASINO A PRIVATE GAMING COMPANY IN LEDYARD CONN HE SUCCEEDS RICHARD KIDNEY 49 WHO RETAINS THE TITLE OF CHAIRMAN MR LUCIANI'S ELECTION AS A DIRECTOR INCREASES BOARD MEMBERSHIP TO 10 9303260199 930326 WHO'S NEWS WEST POINTPEPPERELL INC WEST POINTPEPPERELL INC WEST POINT GA MORGAN M MAC SCHUESSLER WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF BEDDING AND BATH PRODUCTS MR SCHUESSLER 57 YEARS OLD SUCCEEDS STANLEY KEES WHO RESIGNED IN JANUARY MR SCHUESSLER RESIGNED AS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF DIXIE YARNS INC TO TAKE THE POST DIXIE YARNS SAID IT HASN'T NAMED A SUCCESSOR 9303260198 930326 WHO'S NEWS CNS INC CNS INC MINNEAPOLIS RICHARD JAHNKE 44 YEARS OLD FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LEMNA CORP WAS NAMED PRESIDENT AND TO THE VACANT POST OF CHIEF OPERATING OFFICER OF THIS MAKER OF MEDICAL DEVICES FOR SLEEP RELATED DISORDERS AS PRESIDENT HE SUCCEEDS DANIEL E COHEN 40 WHO CONTINUES AS CHIEF EXECUTIVE OFFICER 9303260197 930326 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 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 59 DAYS 308 60 TO 119 DAYS 310 120 TO 149 DAYS 313 150 TO 179 DAYS 315 180 TO 239 DAYS 320 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 315 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 280 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 315 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 303 90 DAYS 305 120 DAYS 307 150 DAYS 309 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 5/16 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 22 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 294 13 WEEKS 305 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 728 60 DAYS 738 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 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 9303260196 930326 WHO'S NEWS BSD BANCORP INC BSD BANCORP INC SAN DIEGO JAMES S BROWN 59 YEARS OLD RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER EFFECTIVE NEXT WEDNESDAY THE BANK HOLDING COMPANY SAID MR BROWN CHAIRMAN SINCE THE COMPANY WAS FOUNDED IN 1980 PLANS TO DEVOTE FULL TIME TO OTHER BUSINESS INTERESTS THE COMPANY SAID NO SUCCESSOR WAS NAMED AND MR BROWN COULDN'T BE REACHED IN ADDITION WARD W DEEMS 63 SAID HE RESIGNED AS A DIRECTOR FOR PERSONAL REASONS THE DIRECTOR'S RESIGNATION SHRINKS THE BOARD TO FOUR MEMBERS 9303260195 930326 WHO'S NEWS EARTH TECHNOLOGY CORP EARTH TECHNOLOGY CORP LONG BEACH CALIF DIANE C CREEL PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS ELECTED CHAIRWOMAN OF THE SEVENMEMBER BOARD OF THIS PROVIDER OF ENVIRONMENTAL CONSULTING SERVICES MS CREEL 44 YEARS OLD SUCCEEDED JACK J SCHOUSTRA 62 WHO RETIRED TO PURSUE HOBBIES AND OTHER INTERESTS HE SAID KLAAS E TEN BROEKE SERVED AS INTERIM CHAIRMAN UNTIL MS CREEL'S APPOINTMENT 9303260194 930326 WHO'S NEWS GUZMAN & CO GUZMAN & CO NEW YORK GEORGE L RODRIGUEZ 34 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF EQUITIES AND HEAD OF THE INSTITUTIONAL EQUITY EXECUTION NETWORK A NEWLY CREATED POSITION AT THIS INVESTMENT BANKING FIRM MR RODRIGUEZ HAD BEEN A DIRECTOR OF MARKETING AND SALES AT THE NEW YORK STOCK EXCHANGE 9303260193 930326 INTERNATIONAL GERMANY DEADLOCKED ON AWACS DEBATE DECIDES TO BRING THE ISSUE TO THE COURTS BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN THE PARTIES IN GERMANY'S RULING CENTERRIGHT COALITION STRUGGLING TO SETTLE THE DEBATE ON WHAT INTERNATIONAL MILITARY RESPONSIBILITIES THE COUNTRY MAY FULFILL WILL TRY A NEW APPROACH THEY ARE GOING TO SUE EACH OTHER AT ISSUE IS WHETHER GERMAN AIR FORCE CREW MEMBERS CAN SERVE ON NORTH ATLANTIC TREATY ORGANIZATION RECONNAISSANCE AIRCRAFT IF AS EXPECTED THE UNITED NATIONS GIVES NATO THE TASK OF ENFORCING A FLIGHT BAN OVER BOSNIAHERZEGOVINA CHANCELLOR HELMUT KOHL'S GOVERNMENT IS DIVIDED WITH SOME COALITION MEMBERS INSISTING THAT GERMANY'S CONSTITUTION FORBIDS THE USE OF GERMAN SOLDIERS OUTSIDE NATO BORDERS AND OTHERS SAYING THE CONSTITUTION CAN BE INTERPRETED TO ALLOW GERMAN FORCES TO HELP ENFORCE THE BOSNIAN NOFLY ZONE MR KOHL'S CONSERVATIVE CHRISTIAN DEMOCRATIC UNION INSISTS THAT GERMANY MUST FULFILL ITS NATO AND UN OBLIGATIONS WHILE THE JUNIOR PARTNER FREE DEMOCRATS ARGUE THAT IT IS UNCONSTITUTIONAL IN RECENT WEEKS AS A SECURITY COUNCIL RESOLUTION TO ENFORCE THE FLIGHT BAN HAS BECOME MORE LIKELY PARTY LINES HAVE HARDENED CONCEDING THAT BONN COULDN'T COPE WITH THE ISSUE FOREIGN MINISTER KLAUS KINKEL DISCLOSED A PLAN UNDER WHICH HIS FREE DEMOCRATS WOULD SUE THE GOVERNMENT IN GERMANY'S CONSTITUTIONAL COURT WITHOUT BREAKING UP THE 11YEAROLD COALITION AS SOON AS THE UN SECURITY COUNCIL PASSES ITS RESOLUTION A CABINET VOTE WILL BE TAKEN ON KEEPING THE GERMAN TROOPS ABOARD THE NATO AWACS PLANES AND THE CHRISTIAN DEMOCRATS WILL OUTVOTE THE FREE DEMOCRATS THE FDP WOULD THEN FILE A COMPLAINT WITH THE CONSTITUTIONAL COURT WHICH MUST HAND DOWN ITS DECISION IN TWO OR THREE DAYS IF AS MOST LEGAL SCHOLARS AND MR KOHL'S CHRISTIAN DEMOCRATS CONTEND THE COURT AGREES THAT PARTICIPATION IN THE AWACS MISSION IS CONSTITUTIONALLY PERMITTED GERMAN CREWS WOULD BE READY TO FLY WHEN THE UN RESOLUTION GOES INTO EFFECT SEVEN DAYS AFTER ITS PASSAGE SHOULD THE COURT RULE THAT BUNDESWEHR PERSONNEL CAN'T SERVE THE AIRCRAFT COULD OPERATE FOR ABOUT TWO WEEKS WITHOUT THE GERMANS OFFICIALS ESTIMATE AND EXTRA US CREWS WOULD HAVE TO BE BROUGHT IN THAT WOULD BE EMBARRASSING SAID A BONN OFFICIAL WHO CALLED THE AGREEMENT TO SUE SOMETHING OUT OF ABSURDISTAN DEVISED ON THE EVE OF MR KOHL'S DEPARTURE FOR HIS FIRST MEETING WITH PRESIDENT CLINTON THE COALITION AGREEMENT WAS ALSO AIMED AT PRECLUDING THE ADDITIONAL HUMILIATION OF A CABINET CRISIS WHILE THE CHANCELLOR WAS IN WASHINGTON 9303260192 930326 FIRST UNITED BANK IS CREATED ALBUQUERQUE NM UNITED NEW MEXICO FINANCIAL CORP SAID IT COMPLETED ITS MERGER WITH FORD BANK GROUP INC OF LUBBOCK TEXAS TERMS WEREN'T DISCLOSED THE NEW COMPANY FIRST UNITED BANK GROUP INC SAID IT HAS ASSETS OF 34 BILLION AND EQUITY OF 234 MILLION 9303260191 930326 WHO'S NEWS MARK IV INDUSTRIES INC MARK IV INDUSTRIES INC AMHERST NY BRUCE A MCNIEL 44 YEARS OLD WAS NAMED PRESIDENT OF THE COMPANY'S DAYCO PRODUCTS INC UNIT A SUPPLIER OF BELTS HOSES AND ENGINEERED DRIVE SYSTEMS HE SUCCEEDS DONALD G BETHUNE 55 WHO IS RETIRING 9303260190 930326 TECHNOLOGY APPLE COMPUTER INC NAMES FIVE LICENSEES FOR NEWTON SYSTEMS CUPERTINO CALIF APPLE COMPUTER INC SEEKING TO ESTABLISH ITS TECHNOLOGY AS A GLOBAL STANDARD FOR THE FLEDGLING HANDHELD COMPUTER BUSINESS ANNOUNCED A RAFT OF LICENSING AGREEMENTS FOR ITS NEWTON COMPUTING SYSTEM APPLE NAMED FIVE COMPANIES AS LICENSEES FOR THE NEWTON A HANDHELD COMPUTER THAT APPLE HAS TRUMPETED AS THE NEXT WAVE IN THE INDUSTRY JAPAN'S SHARP CORP WHICH ALREADY HAS AGREEMENTS WITH APPLE TO HELP DEVELOP NEWTON TECHNOLOGY NOW HAS A LICENSE ON THE ADVANCED CHIP THAT WILL POWER THE SYSTEM MOTOROLA INC HAS A LICENSE ON NEWTON TECHNOLOGY FOR USE IN HANDHELD WIRELESS COMMUNICATION PRODUCTS CIRRUS LOGIC INC WILL PRODUCE CHIP SETS FOR USE BY LICENSEES KYUSHU MATSUSHITA ELECTRIC CO A UNIT OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO HAS A LICENSE TO USE THE NEWTON OPERATING SYSTEM IN ITS PRODUCTS LSI LOGIC CORP WILL MAKE A SPECIAL CHIP FOR USE IN THE NEWTON TOGETHER THE AGREEMENTS SIGNAL APPLE'S INTENTION TO PUSH FOR INDUSTRYWIDE STANDARDS FOR HANDHELD COMPUTERS AND TO MAKE THOSE STANDARDS REVOLVE AROUND NEWTON TECHNOLOGY TODAY WE'RE SETTING THE STAGE TO CREATE A WORLDWIDE STANDARD AVAILABLE TO THE ENTIRE INDUSTRY SAID GASTON BASTIAENS VICE PRESIDENT AND GENERAL MANAGER OF APPLE'S PERSONAL INTERACTIVE ELECTRONICS DIVISION THE PACTS ALSO MARK A DEPARTURE FROM APPLE'S TRADITION OF STEADFASTLY REFUSING TO SHARE TECHNOLOGICAL SECRETS WITH COMPETITORS ANALYSTS SAID THE NEW APPROACH REFLECTS A REALIZATION THAT GIVEN THE PACE OF TECHNOLOGICAL CHANGE AND THE HORDES OF ABLE COMPETITORS IN THE COMPUTER BUSINESS APPLE CAN NO LONGER CREATE ENTIRE NEW MARKETS BY ITSELF AS IT ESSENTIALLY DID WITH ITS FLAGSHIP MACINTOSH PERSONAL COMPUTER SYSTEM IN OVERTHECOUNTER TRADING APPLE CLOSED AT 5475 UP 1 9303260189 930326 ECONOMY EXISTINGHOME SALES FELL UNEXPECTEDLY IN FEBRUARY RECORDING SHARP 6 DROP BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL EXISTINGHOME SALES FELL A SHARP 6 IN FEBRUARY FROM THE PREVIOUS MONTH AN UNEXPECTED DROP THAT ANALYSTS SAY LARGELY REFLECTED A WEATHERRELATED SLOWDOWN IN THE US HOUSING MARKET FEBRUARY'S ANNUALIZED SEASONALLY ADJUSTED SALES RATE OF 36 MILLION AS REPORTED BY THE NATIONAL ASSOCIATION OF REALTORS WAS THE LOWEST SINCE SEPTEMBER AND REPRESENTED THE SECOND CONSECUTIVE MONTHLY DECLINE FROM DECEMBER'S BOOMING PACE OF FOUR MILLION SALES THE CONSENSUS AMONG HOUSING ANALYSTS HAD BEEN FOR A 2 INCREASE IN FEBRUARY SALES TO ABOUT 39 MILLION FROM 38 MILLION IN JANUARY THOUGH DISAPPOINTED BY THE REPORT ANALYSTS POINTED OUT THAT THE FEBRUARY SALES RATE WAS STILL 26 HIGHER THAN IN FEBRUARY 1992 AND THAT SALES WERE HELD BACK BY THE UNUSUALLY SEVERE WINTER WEATHER THAT HAS PLAGUED BOTH COASTS THE BLIZZARD THAT SMASHED THE EASTERN SEABOARD THIS MONTH SHOULD ALSO DAMP SALES REPORTS FOR MARCH ALTHOUGH ANALYSTS EXPECT APRIL TO REBOUND STRONGLY AMID POWERFUL DEMAND THAT IS BEING FUELED BY INTEREST RATES BELOW 8 THERE IS SUBSTANTIAL PENTUP DEMAND TO BE FILLED DUE TO CONSUMER RELUCTANCE TO ENTER THE MARKET DURING THE RECESSION SAID WILLIAM S CHEE A HONOLULU BROKER AND PRESIDENT OF THE WASHINGTONBASED REALTORS' TRADE GROUP ALLEN SABBAG PRESIDENT OF BETTER HOMES & GARDENS REAL ESTATE SERVICE A DES MOINES IOWABASED BROKERAGE UNIT OF MEREDITH CORP ADDED THE MARKET WAS TAKING A LITTLE BREATHER AFTER FOUR MONTHS OF ROBUST ACTIVITY INDEED REALTORS REPORT BOOMLIKE SALES IN PLACES LIKE TEXAS COLORADO AND THE MIDWEST THAT HAVEN'T BEEN AS HARD HIT BY THE INCLEMENT WEATHER THE RESURGING DENVER MARKET FOR EXAMPLE IS SO HOT THAT HOUSING INVENTORY IS DEPLETED TO ITS LOWEST LEVEL IN ABOUT 15 YEARS REALTORS THERE SAY OUR PEOPLE ARE TELLING US THAT IT IS A GOOD SOLID MARKET IN MOST PLACES IN THE US SAID DARYL JESPERSON EXECUTIVE VICE PRESIDENT OF ENGLEWOOD COLOBASED RE/MAX INTERNATIONAL INC MR JESPERSON ADDED THAT RECESSION STRICKEN CALIFORNIA REMAINS WEAK AND THAT THE SEATTLE AREA IS STARTING TO SLOW DOWN AMID IMPENDING AEROSPACE LAYOFFS WHAT'S MORE A HOME LOAN PURCHASE INDEX BY THE MORTGAGE BANKERS ASSOCIATION IS RUNNING AT A STILLSTRONG 59 ABOVE NORMAL ALTHOUGH IT HAS SUBSIDED SOME IN RECENT WEEKS AFTER PEAKING AT 83 ABOVE NORMAL BECAUSE THE INDEX REFLECTS NEW MORTGAGE ACTIVITY THAT WOULD TAKE AS LONG AS TWO MONTHS TO CLOSE THIS IS A MORE ACCURATE INDICATOR OF FUTURE HOUSING SALES THE REALTORS' NUMBERS REFLECT CLOSED SALES THAT TAKE 30 DAYS TO 60 DAYS TO COMPLETE SO FEBRUARY'S REPORT WOULD ACTUALLY INDICATE SALES FROM DECEMBER AND JANUARY SEASON'S START WE'RE LOOKING FOR APRIL TO BE THE MONTH WHEN THE SPRING BUYING SEASON REALLY STARTS SAID DAVID LEREAH CHIEF ECONOMIST FOR THE MORTGAGE BANKERS' TRADE GROUP EXISTINGHOME SALES IN FEBRUARY FELL IN EVERY REGION BUT MOST SHARPLY IN THE NORTHEAST AND WEST WHERE WINTER WEATHER HIT THE HARDEST SALES IN THE WEST FELL 86 FROM THE PREVIOUS MONTH WHILE SALES IN THE NORTHEAST DROPPED 83 ACCORDING TO THE REALTORS' ASSOCIATION MIDWESTERN SALES WERE OFF 5 FROM JANUARY AND SALES IN THE SOUTH SLIPPED 44 ALL REGIONS EXCEPT THE WEST STILL REPORTED HIGHER SALES ACTIVITY THAN IN FEBRUARY 1992 9303260188 930326 ONTARIO IS TAKING AIM AT DEALERS' PRACTICES IN PENNY STOCK SALES TORONTO DEALERS OF PENNY STOCKS IN ONTARIO WILL NO LONGER BE ABLE TO RELY ON HIGHPRESSURE TACTICS OVER THE TELEPHONE TO COMPLETE SALES UNDER NEW RULES SET BY THE PROVINCE'S SECURITIES REGULATOR THE ONTARIO SECURITIES COMMISSION ADOPTED A POLICY AIMED AT CLEANING UP WHAT IT CALLED UNFAIR SALES PRACTICES USED TO SELL CHEAP HIGHRISK STOCKS THE NEW POLICY WHICH BECOMES EFFECTIVE JUNE 1 WILL REQUIRE PENNYSTOCK DEALERS TO SEND TO ANY POTENTIAL CLIENTS A RISK DISCLOSURE STATEMENT THAT WARNS INVESTORS ABOUT THE HIGH RISK INVOLVED IN PENNY STOCKS AND THE HIGH COMMISSIONS OFTEN CHARGED BY DEALERS BUT THE BIGGEST PROTECTION FOR INVESTORS IS THAT UNDER THE NEW POLICY PENNY STOCK TRADES CAN'T BE COMPLETED OVER THE PHONE SAID LARRY WAITE DIRECTOR OF ENFORCEMENT FOR THE OSC THE POLICY WILL REQUIRE BOTH THE DEALER AND THE INVESTOR TO SIGN A FORM BEFORE THE TRANSACTION TAKES PLACE THAT AMONG OTHER THINGS SPELLS OUT THE COMMISSION THE DEALER PLANS TO CHARGE THE NEW RULE DOESN'T APPLY TO SECURITIES LISTED ON THE TORONTO AND MONTREAL STOCK EXCHANGES SENIOR SECURITIES ON THE ALBERTA AND VANCOUVER STOCK EXCHANGES AND SECURITIES WHOSE ISSUERS HAVE SIGNIFICANT REVENUE IT IS AIMED MAINLY AT OVERTHECOUNTER ISSUES MR WAITE SAID FIRMS OR PERSONS WHO VIOLATE THE OSC'S NEW RULING COULD BE SUSPENDED OR BANNED FROM SELLING SECURITIES MR WAITE SAID THE ANNUAL VALUE OF PENNYSTOCK TRADES IN ONTARIO IS ABOUT 100 MILLION CANADIAN DOLLARS US805 MILLION HE ADDED THE SECURITIES DEALERS SOCIETY OF ONTARIO WHICH REPRESENTS PENNYSTOCK DEALERS SAID IT WAS SHOCKED THAT THE OSC ADOPTED THE POLICY THE OSC INTENDS TO IMPAIR THE OPERATIONS OF PENNYSTOCK DEALERS THE SOCIETY SAID ADDING THAT IT WILL CONTINUE WITH ITS LAWSUIT AGAINST THE OSC WHICH IT FILED LAST FALL 9303260187 930326 WHO'S NEWS BANKAMERICA SAYS GRUNDHOFER PLANS TO LEAVE HIS POST BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO BANKAMERICA CORP SAID VICE CHAIRMAN JERRY GRUNDHOFER WILL LEAVE THE COMPANY BY APRIL 30 MR GRUNDHOFER 48 YEARS OLD WILL JOIN SEVERAL OTHER FORMER TOP SECURITY PACIFIC CORP EXECUTIVES WHO HAVE LEFT BANKAMERICA RECENTLY BANKAMERICA ACQUIRED SECURITY PACIFIC IN A 42BILLION MERGER THAT WAS COMPLETED LAST YEAR LAST SUMMER ROBERT SMITH FORMERLY SECURITY PACIFIC'S CHAIRMAN AND CHIEF EXECUTIVE STEPPED DOWN AS BANKAMERICA'S PRESIDENT AND CHIEF OPERATING OFFICER SAYING HE DIDN'T HAVE ENOUGH TO DO AT BANKAMERICA MR GRUNDHOFER WAS SECURITY PACIFIC'S PRESIDENT AT THE TIME OF THE MERGER BEFORE SECURITY PACIFIC DECIDED TO SURRENDER ITS INDEPENDENCE HE WAS CONSIDERED A PRIME CONTENDER TO EVENTUALLY BECOME SECURITY PACIFIC'S CHAIRMAN AND CHIEF EXECUTIVE AT BANKAMERICA HE WAS IN CHARGE OF CALIFORNIA COMMERCIAL BANKING COMMERCIAL REAL ESTATE AND INSTITUTIONAL TRUST AND INVESTMENT SERVICES AMONG OTHER THINGS MR GRUNDHOFER COULDN'T BE REACHED FOR COMMENT IN A STATEMENT HE DIDN'T ADDRESS HIS REASONS FOR LEAVING BUT SAID HE NOW HAS THE FLEXIBILITY TO ASSESS AND EXPLORE A WIDE RANGE OF CAREER AND PERSONAL OPTIONS IN A TOTALLY UNPRESSURED ATMOSPHERE ONE REASON FOR THAT FLEXIBILITY IS THAT MR GRUNDHOFER WILL RECEIVE A SWEET SEVERANCE PACKAGE FROM BANKAMERICA A SPOKESMAN DECLINED TO SAY HOW MUCH THE PACKAGE WILL BE WORTH BUT IT'S BASED ON A PAYMENT TOTALING THREE TIMES MR GRUNDHOFER'S SALARY AND CERTAIN OTHER COMPENSATION IN 1991 THE LATEST PERIOD FOR WHICH FIGURES ARE AVAILABLE MR GRUNDHOFER EARNED A BASE SALARY OF 375000 PLUS 125000 IN INCENTIVE PAY AND BENEFITS BANKAMERICA EARLIER THIS WEEK CONFIRMED THAT IT WILL SOON BEGIN REPAYING FORMER SECURITY PACIFIC TRUST CUSTOMERS WHO WERE OVERCHARGED FOR YEARS BY SECURITY PACIFIC'S TRUST DEPARTMENT A RESULT OF HONEST MISTAKES BANKAMERICA SAYS BANKAMERICA HAS SET ASIDE ABOUT 50 MILLION TO COVER COSTS RELATED TO THE MATTER WHICH IS BEING INVESTIGATED BY FEDERAL BANK REGULATORS A SPOKESMAN SAID MR GRUNDHOFER'S DEPARTURE WAS NOT IN ANY WAY RELATED TO THE OVERCHARGING PROBLEM 9303260186 930326 TECHNOLOGY & HEALTH RESEARCHERS DEVELOP POSSIBLE TREATMENT FOR COCAINE ADDICTION USING ANTIBODY BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS SAID THEY DEVELOPED A POTENTIAL WAY TO TREAT COCAINE ADDICTION BY DESTROYING THE DRUG IMMEDIATELY AFTER IT ENTERS THE BLOOD STREAM AND BEFORE IT REACHES THE BRAIN THE NOVEL APPROACH WHICH USES A SOCALLED CATALYTIC ANTIBODY COULD LEAD TO A NEW STRATEGY TO DAMP THE SMOKING OF CRACK COCAINE THAT PLAGUES MANY CITIES THE CATALYTIC ANTIBODY IS ONE OF THE NEW INVENTIONS THAT IS EMERGING FROM BIOTECHNOLOGY LABORATORIES ANTIBODIES ARE BITS OF PROTEINS THAT ANIMALS INCLUDING HUMANS ORDINARILY PRODUCE TO FIGHT OFF DISEASECAUSING INVADERS SUCH AS VIRUSES OFTEN CALLED BIOLOGICAL MAGIC BULLETS ANTIBODIES ARE DESIGNED TO HOME IN AND GRAB HOLD OF SPECIFIC TARGETS AND NEUTRALIZE THEM THE LABORATORYMADE CATALYTIC ANTIBODIES LIKE THE NATURAL ONES ALSO ARE DESIGNED TO HOME IN ON SPECIFIC TARGETS BUT INSTEAD OF NEUTRALIZING THE TARGETS THE CATALYTIC ANTIBODIES ARE DESIGNED TO TRIGGER A CHEMICAL REACTION A NEW YORK SCIENTIFIC TEAM DESCRIBED TESTTUBE EXPERIMENTS WITH A CATALYTIC ANTIBODY THAT HOMES IN ON THE COCAINE MOLECULE AND CAUSES IT TO SPLIT INTO TWO INACTIVE INGREDIENTS THIS RAISES THE POSSIBILITY THAT SUFFICIENT QUANTITIES OF THE ANTIBODY CIRCULATING IN THE BLOOD MIGHT BE ABLE TO DESTROY COCAINE AND PREVENT IT FROM REACHING THE BRAIN WHERE IT COULD HAVE ADDICTIVE EFFECTS SAID DONALD W LANDRY ASSISTANT PROFESSOR OF MEDICINE AT THE COLLEGE OF PHYSICIANS AND SURGEONS AT COLUMBIA UNIVERSITY IN NEW YORK ALTHOUGH HUMAN EXPERIMENTS ARE SOME YEARS AWAY DR LANDRY SAID THAT IF THE POTENTIAL IS BORNE OUT THE ANTIBODY WOULD AMOUNT TO A KIND OF VACCINATION AGAINST RELAPSE FOR COCAINE AND CRACK ADDICTS WHO SEEK TREATMENT HE IS LEAD AUTHOR OF A STUDY PUBLISHED IN TODAY'S ISSUE OF SCIENCE THAT DESCRIBES THE DEVELOPMENT OF THE ANTIBODY DR LANDRY ENVISIONS THAT ADDICTS WHO SEEK TREATMENT WOULD BE GIVEN THE ANTIBODY INTRAVENOUSLY PERHAPS ONCE EVERY TWO WEEKS TO PROVIDE PROTECTION AGAINST RELAPSE UNTIL OTHER DRUG TREATMENTS AND PSYCHOTHERAPY TREATMENTS HAVE A CHANCE TO TAKE EFFECT CURRENTLY HE SAID 90 OF CRACK ADDICTS WHO SEEK TREATMENT RELAPSE MANY WITHIN A FEW DAYS ONE DRUG DESIPRAMINE CURRENTLY SHOWS PROMISE IN HELPING ADDICTS ABSTAIN FROM COCAINE BUT IT TAKES SEVERAL WEEKS TO WORK HE ADDED THE NEW AGENTS WOULDN'T PROVIDE A CURE FOR ADDICTION SINCE THEY WOULDN'T ELIMINATE EITHER SOCIAL AND BIOLOGICAL CONTRIBUTORS TO ADDICTION RESEARCHERS HAVE SPECULATED THAT ANTIBODIES MIGHT BE MADE TO TREAT ADDICTION SINCE AT LEAST THE MID1970S WHEN EXPERIMENTS SHOWED THAT A RHESUS MONKEY ADDICTED TO HEROIN STOPPED USING THE DRUG WHEN INJECTED WITH AN ORDINARY NONCATALYTIC ANTIBODY THAT BLOCKED THE EFFECTS OF HEROIN BUT ANTIBODIES WERE USED UP AND CLEARED FROM THE BODY IN NEUTRALIZING THE HEROIN AND THE MONKEY RELAPSED WHEN GIVEN HIGHER DOSES OF THE DRUG A MAJOR ADVANTAGE OF THE CATALYTIC ANTIBODY SCIENTISTS BELIEVE IS THAT IT SPARKS THE CHEMICAL REACTION THAT DESTROYS THE COCAINE MOLECULE BUT IT DOESN'T BIND TO ANY OF THE RESULTING PRODUCTS TO BE CLEARED FROM THE BODY INSTEAD IT IS RELEASED TO ATTACK ANOTHER MOLECULE AND AS A RESULT CAN'T BE OVERRIDDEN BY TAKING HIGHER DOSES OF COCAINE THE AVERAGE LIFESPAN OF ANTIBODIES IN THE BLOOD STREAM IS ABOUT THREE WEEKS DR LANDRY SAID THE SCIENTISTS DEVELOPED THE CATALYTIC AGENT BY INJECTING MICE WITH A FORM OF COCAINE THEY ISOLATED ABOUT 30 DIFFERENT ANTIBODIES THE MICE PRODUCED IN RESPONSE TO THE INJECTION AND FOUND THAT TWO OF THEM PRODUCED THE CATALYTIC REACTION THAT BROKE UP THE COCAINE MOLECULE THE NEXT STEP IS TO PERFORM EXPERIMENTS TO TEXT TOXICITY AND EFFECTIVENESS OF THE CATALYTIC ANTIBODY IN ANIMALS DR LANDRY SAID NEW MORE HIGHLY ACTIVE VERSIONS OF THE CATALYTIC ANTIBODY WOULD HAVE TO BE DEVELOPED FOR USE IN HUMANS 9303260185 930326 SPAIN'S PRODUCTION OF MOTOR VEHICLES FELL 38 IN JANUARY STAFF REPORTER OF THE WALL STREET JOURNAL MADRID SPAIN'S MOTOR VEHICLE PRODUCTION DROPPED 38 IN JANUARY FROM A YEAR EARLIER THE SPANISH ASSOCIATION OF AUTO MAKERS OR ANFAC SAID ANFAC DIDN'T PROVIDE YEAREARLIER FIGURES BUT SAID THE NUMBER OF VEHICLES PRODUCED IN JANUARY 1993 TOTALED 120483 THE NUMBER OF PASSENGER CARS PRODUCED IN JANUARY PLUNGED 41 TO 986249 FROM YEAREARLIER LEVELS WHILE THE NUMBER OF INDUSTRIAL VEHICLES AND BUSES MANUFACTURED DROPPED BY 19 TO 22234 UNITS ANFAC ATTRIBUTED THE SHARP FALL IN THE PRODUCTION OF PASSENGER CARS FUNDAMENTALLY TO AN ACUTE WEAKENING OF DEMAND BOTH DOMESTICALLY AND FROM ABROAD ANFAC SAID MOTOR VEHICLE EXPORTS DROPPED 37 TO 85560 UNITS IN JANUARY 1993 COMPARED WITH JANUARY 1992 PASSENGER CAR EXPORTS FELL 40 TO 71999 CARS IN JANUARY FROM PREVIOUSYEAR LEVELS UNMISTAKABLY CONFIRMING THE WORRYING FALL IN EXTERNAL DEMAND SEEN FROM THE FINAL QUARTER OF 1992 EXPORTS OF INDUSTRIAL VEHICLES AND BUSES EASED BY 12 TO 13561 UNITS IN JANUARY ANFAC SAID 9303260184 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT MAKING MUSIC THE FIRST STEP TO RECOVERY HI MY NAME IS DAVE AND I LIKE ABBA BY DAVID J JEFFERSON I'LL ADMIT IT I WAS A CLOSET ABBA FAN BACK IN THE 1970S WHEN MY TEENAGE FRIENDS WERE MASTERING EDDIE VAN HALEN'S GUITAR LICKS AND STICKING OUT THEIR TONGUES LIKE KISS'S VAMPIRISH LEAD ROCKER I WAS FURTIVELY IMITATING THE SOARING HARMONIES OF AGNETHA AND FRIDA SCANDINAVIAN ACCENTS AND ALL MY BUDDIES WANTED TO DO THE HUSTLE AND LEARN JOHN TRAVOLTA'S SMOOTH DISCO MOVES I LOVED THE DANCING QUEEN NO HIP TEENAGERS I KNEW LISTENED TO ABBA THE ONLY ONES WHO SEEMED TO LIKE THE SPANDEXED SWEDES WERE THOSE WHO ENJOYED WEARING ORTHODONTAL NECKGEAR NONE OF THE COOL KIDS SEEMED TO CARE THAT THE QUARTET WENT ON TO SELL 240 MILLION RECORDS WORLDWIDE AFTER WINNING THE EUROVISION SONG CONTEST IN 1974 WITH THE INSPIRED WATERLOO MY MY AT WATERLOO NAPOLEON DID SURRENDER IT MEANT NOTHING THAT THEY HAD NINE NO 1 HITS IN ENGLAND AND OUTSOLD THE BEATLES NEVER MIND THAT THEY WERE ONE OF THE FEW ROCK GROUPS WHOSE ALBUMS COULD BE PLAYED LEGITIMATELY WITHOUT FEAR OF RETRIBUTION IN THE FORMER SOVIET UNION NO THE SAD TRUTH WAS THAT IN AMERICA ABBA WAS FOR THE NERDS MYSELF INCLUDED THE ONLY FRIEND I LET KNOW OF MY OBSESSION WAS FERNANDO AND HE HAD THE MISFORTUNE OF HAVING THE SAME NAME AS AN ABBA SONG STILL I COULDN'T UNDERSTAND WHY ABBA WASN'T AS POPULAR HERE AS IN THE REST OF THE WORLD WHAT WASN'T TO LIKE THEY WERE AN ATTRACTIVE FOURSOME PAIRED OFF BY HAIR COLOR FIRST THE BLONDS MARRIED EACH OTHER THEN THE BRUNETS THEY WERE SNAPPY DRESSERS IN THEIR ELECTRICBLUE SATIN JUMPSUITS AND KNEEHIGH LAME BOOTS AND THEIR MUSIC WAS CATCHY WITH PRETTYMUCH MONOSYLLABIC TUNES LIKE SOS MAMMA MIA AND MONEY MONEY MONEY EASY TO REMEMBER PARTICULARLY FOR THE BAND WHICH OFTEN SANG THE WORDS PHONETICALLY BUT ABBA WAS FROM SWEDEN AND TO MOST HIP AMERICAN LISTENERS THAT WAS A MAJOR LIABILITY SWEDEN GAVE US MEATBALLS BOXY CARS AND DEPRESSING MOVIES NOT POP MUSIC AMERICAN MUSIC AUDIENCES RARELY EMBRACE ANYTHING MORE FOREIGNSOUNDING THAN BRITISH ACCENTS SWEDISH ACCENTS DIDN'T CUT THE MUSTARD FEW SINGERS FROM NONENGLISHSPEAKING COUNTRIES HAVE ENJOYED SUSTAINED SUCCESS HERE BELGIUM'S SINGING NUN JAPAN'S PINK LADY GERMANY'S MILLI VANILLI ALL FLASHES IN THE PAN ABBA BEAT THEM ALL WITH MORE THAN A DOZEN US TOP 40 SONGS IN THE 1970S NONETHELESS MY PEERS DISMISSED ABBA AS EUROTRASH WHERE I GREW UP IN THE INFAMOUS VALLEY NORTH OF LOS ANGELES ADMITTING YOU LISTENED TO ABBA WAS LIKE SAYING YOU HAD NEVER BEEN TO THE GALLERIA SHOPPING MALL ALTHOUGH IF YOU HAD BEEN TO THE GALLERIA YOU WOULD MOST CERTAINLY HAVE HEARD ABBA'S MUSIC WAFTING OVER THE PA SYSTEM FOR ME GOING TO THE RECORD STORE FOR AN ABBA ALBUM WAS LIKE A TRIP TO THE PHARMACY FOR PERSONAL ITEMS AND I WOULD HIDE THE OFFENDING PURCHASE BETWEEN A STACK OF OTHER THINGS I DIDN'T REALLY WANT HOPING THAT THE SALESMAN WOULDN'T NOTICE THAT EXPLAINS THOSE BEE GEES RECORDS IN MY COLLECTION ONCE SAFELY ENSCONCED IN MY PARENTS' CHEVROLET HOWEVER I COULD POP IN MY ABBA 8TRACK AND WE WOULD ALL JOIN IN A ROUSING CHORUS OF CHIQUITITA MY PARENTS LIKED ABBA I THINK ALL PARENTS DID TO THEM AFTER A DECADE OF SEX DRUGS AND ROCKANDROLL ABBA MUST HAVE SEEMED LIKE A REFRESHING BLAST OF SANITY FROM THE ICY FJORDS THE NAME ABBA AN ACRONYM FOR THE BAND MEMBERS' MORE CUMBERSOME SCANDINAVIAN NAMES AS WELL AS THE TRADEMARK OF A SWEDISH FISHCANNING COMPANY SOUNDED LIKE BABY TALK EVOKING PLEASANT MEMORIES OF HEARTH AND HOME THE MUSIC WAS SWEET AND UNINSPIRED BAND COMPOSER BJORN ULVAEUS THE BLOND FASHIONED THE THUMPING MELODY TO TAKE A CHANCE ON ME AFTER THE SOUND OF HIS OWN JOGGING HE WROTE THE SONG EAGLE AFTER READING JONATHAN LIVINGSTON SEAGULL ONLY THE PUNK CROWD SEEMS TO STAY AWAY COMPLETELY FROM OUR MUSIC BJORN ONCE REMARKED WHEN ABBA PERFORMED IN SOUTHERN CALIFORNIA ACROSS THE STREET FROM DISNEYLAND THE CONCERT GOERS LOOKED AS IF THEY HAD JUST STEPPED OUT OF THE MAGIC KINGDOM SOME EVEN WORE MOUSE EARS YES I WAS THERE WITH MY PARENTS INDEED ABBA WAS GOING AFTER THE SAME MARKET AS DISNEY WITH NONTHREATENING FAMILY MELODIES DESIGNED TO APPEAL TO A DIVERSE WORLDWIDE AUDIENCE IN ITS DAY ABBA WAS THE PREMIER MUSICAL MARKETING MACHINE A MERCHANDISING ARM CHURNED OUT ABBA TOTE BAGS AND GOLDPLATED NECKLACES COMPLETE WITH THE BACKWARD B IN THE LOGO THERE WAS A FAN CLUB AND A NEWSLETTER WITH AN ABBA QUIZ QUESTION BJORN'S GROUP FROM THE '60S ANSWER THE HOOTENANNY SINGERS THERE WERE SOUVENIR CONCERT PROGRAMS WITH SLICK COPY FRIDA SHE'S TALL SLIM AND MOST DECIDEDLY A SMART DRESSER AND ABBA WAS AMONG THE FIRST BANDS TO REALIZE THE IMPORTANCE OF MUSIC VIDEOS YEARS BEFORE MTV ITS EFFORTS WERE CRUDE BY TODAY'S STANDARDS THE NAME OF THE GAME VIDEO HAS THE SWEATERCLAD GROUP PLAYING PARCHEESI IN THEIR SWEDISH COUNTRY KITCHEN AND INCLUDES AN UNFORTUNATE SHOT OF AGNETHA PICKING HER NOSE BUT IT WAS A START IT HAS BEEN A DECADE SINCE THE SWEDISH POP QUARTET DISBANDED TORN APART BY DIVORCE AND THE ANTIDISCO BACKLASH THAT TOOK KC & THE SUNSHINE BAND DONNA SUMMER AND PEACHES & HERB WITH THEM BUT THOUGH I WAS ABLE TO DO AWAY WITH THE BROWN ANGEL'S FLIGHT POLYESTER SLACKS AND THE MATCHING SATURDAY NIGHT FEVER SHIRT I COULDN'T PART WITH MY ABBA RECORDS I TOLD MY COLLEGE ROOMMATES THAT THE 10 ABBA ALBUMS IN MY COLLECTION ORGANIZED BY RELEASE DATE WERE JUST THOUGHTLESS GIFTS FROM A MUSICALLY CHALLENGED AUNT SECRETLY THOUGH I KNEW THOSE ALBUMS WERE GEMS AND THAT ONE DAY THE HIP CROWD WOULD JOIN IN THE ANTHEM THERE WAS SOMETHING IN THE AIR THAT NIGHT THE STARS WERE BRIGHT FERNANDO TIME PROVED ME RIGHT LIKE A TIEDYED TSHIRT ABBA IS SUDDENLY HIPPER THAN EVER THAT'S BECAUSE THE INCROWD HAS DUBBED THE 1970S ITS NOSTALGIA DECADE DU JOUR AND IT HAS SELECTED ABBA AS THE BAND THAT BEST EPITOMIZES THE AURAL ACCOMPLISHMENTS OF THE TIME LAST YEAR THE ENGLISH POP DUO ERASURE CUT AN ABBAESQUE ALBUM OF OLD HITS AND ITS RECENT US TOUR ATTRACTED THRONGS OF YOUNG MEN DRESSED IN ABBADRAG SATEEN HOT PANTS SPANGLED BLOUSES CHOKRS CROCHETED HATS AND LOTS OF FROSTED BLUE EYE SHADOW IN LONDON A GROUP OF ABBA IMPOSTERS CALLED BJORN AGAIN PERFORM A CAMPY SENDUP TO SELLOUT CROWDS THE MUNICH PHILHARMONIC ORCHESTRA RELEASED AN ALBUM OF ABBA CLASSICS PAKISTANI SISTERS SALMA AND SABINA ARE SINGING ABBA FAVORITES IN HINDI AND WHAT HAS HAPPENED TO THE NOWFORTYSOMETHING FOURSOME I CALL POLYGRAM IN LONDON KEEPERS OF THE ABBA CATALOG TO FIND OUT THE GROUP'S WHEREABOUTS I'M TOLD THAT FRIDA MARRIED AN ITALIAN PRINCE AND IS LIVING HAPPILY EVER AFTER FIGHTING FOR ENVIRONMENTAL CAUSES IN ZURICH HER EXHUSBAND BENNY ANDERSSON THE BEARDED KEYBOARDIST MADE A FEW ALBUMS WITH A GROUP OF SWEDISH ACCORDIONISTS AND IS NOW PRODUCING A LOCAL SINGER NAMED JOSEPHINE HE AND BJORN COMPOSED THE TIM RICE MUSICAL CHESS SHORTLY AFTER ABBA'S DEMISE AND NOW BJORN TALKS OF DOING A MUSICAL ABOUT SWEDISH IMMIGRANTS IN AMERICA BJORN'S EX AGNETHA ALWAYS LOATHED THE JET SET AND NOW JUST VANTS TO BE ALONE CAN I TALK TO ANY OF THEM THEY'RE VERY NERVOUS ABOUT GETTING BACK INTO THE PROMO ROUTINE SAYS CHRIS GRIFFIN POLYGRAM'S DIRECTOR OF CATALOG MARKETING AND THE MASTERMIND BEHIND A NEW FOURMILLIONSELLING ABBA GOLD COMPILATION THEY DON'T REALLY UNDERSTAND WHY PEOPLE ARE GOING BACK TO THESE OLD SONGS BUT ANY FAN WORTH HIS ABBA ARMY AMERICA CARD UNDERSTANDS WHY YOU CAN DANCE YOU CAN JIVE HAVING THE TIME OF YOUR LIFE SEE THAT GIRL WATCH THAT SCENE DIGGIN' THE DANCING QUEEN TODAY I LISTEN TO ANNIE LENNOX 10000 MANIACS AND ARRESTED DEVELOPMENT BUT NONE OF THEM HAVE SUNG ANYTHING LIKE THAT MR JEFFERSON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9303260183 930326 WHAT'S NEWS WORLDWIDE BOSNIA'S GOVERNMENT SIGNED A UN PEACE ACCORD ISOLATING SERB LEADERS THE BREAKTHROUGH CAME AFTER THE CLINTON ADMINISTRATION PRIVATELY MADE STRONG COMMITMENTS TO THE MUSLIMLED GOVERNMENT THE MOST SIGNIFICANT OF WHICH WAS A PROMISE TO WORK TO LIFT A UN ARMS EMBARGO ON BOSNIA IF BOSNIA'S SERBS DON'T SIGN BRITAIN AND FRANCE HOWEVER HAVE SAID THEY OPPOSE LIFTING THE EMBARGO BOSNIA'S CROATIANS ALSO AGREED TO THE PEACE PLAN WHICH DIVIDES THE FORMER YUGOSLAV REPUBLIC INTO 10 ETHNICALLY BASED PROVINCES REFUGEES FLED SREBRENICA ON FOOT AS SERB FORCES ADVANCED ON THE MUSLIM ENCLAVE A UN OFFICIAL SAID THE OFFENSIVE WAS AIMED AT WRECKING PEACE EFFORTS YELTSIN'S MAIN RIVAL OPPOSED EFFORTS TO IMPEACH THE RUSSIAN PRESIDENT THE CONCESSION IN A TELEVISED INTERVIEW WITH KHASBULATOV THE SPEAKER OF PARLIAMENT INDICATES ANTIYELTSIN FORCES LACK THE VOTES TO BEGIN IMPEACHMENT PROCEEDINGS AT A SESSION OF THE FULL LEGISLATURE TODAY A PRESIDENTIAL SPOKESMAN SAID YELTSIN ALSO WENT ON TELEVISION TO ARGUE AGAINST AN IMPEACHMENT VOTE AND RENEW HIS CALL FOR AN APRIL REFERENDUM TO RESOLVE THE POWER STRUGGLE YELTSIN'S CABINET APPROVED EMERGENCY MEASURES IN AN EFFORT TO PUSH AHEAD WITH ECONOMIC REFORMS ON THE EVE OF THE LEGISLATIVE SESSION TO WEIGH IMPEACHMENT A FIFTH SUSPECT WAS ARRESTED IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING AUTHORITIES SAID BILAL ALKAISI TURNED HIMSELF IN AND WAS CHARGED WITH AIDING IN THE ATTACK ALL FOUR MEN CHARGED IN THE BOMBING THAT KILLED SIX SAID THEY ARE INNOCENT AS HAS ANOTHER MAN CHARGED WITH OBSTRUCTING THE INVESTIGATION UN OFFICIALS IN CAMBODIA SAID SEVEN ETHNIC VIETNAMESE WERE KILLED AS A WAVE OF VIOLENCE BLAMED ON KHMER ROUGE GUERRILLAS CONTINUED THE ETHNIC KILLINGS WHICH HAVE TAKEN 80 LIVES SINCE THE UN BEGAN PEACEKEEPING OPERATIONS IN CAMBODIA A YEAR AGO HAVE PROMPTED HUNDREDS OF ETHNIC VIETNAMESE TO FLEE THE COUNTRY IN RECENT WEEKS SOUTH AFRICA CALLED UP MORE THAN 20000 RESERVISTS TO REINFORCE TROOPS AND POLICE IN A CRACKDOWN ON POLITICAL VIOLENCE TROOPS AND POLICE HAVE ALREADY BEEN DEPLOYED IN AN AREA NEAR JOHANNESBURG FOLLOWING THE RECENT KILLINGS OF FOUR WHITES BLACK LEADERS SAID SENDING THE MOSTLY WHITE RESERVISTS TO BLACK TOWNSHIPS COULD HEIGHTEN TENSIONS BENJAMIN NETANYAHU WON CONTROL OF ISRAEL'S LIKUD PARTY SETTING UP A CHALLENGE TO THE LABOR GOVERNMENT IN ELECTIONS SET FOR 1996 THE 43YEAROLD FORMER UN ENVOY EASILY DEFEATED A FORMER FOREIGN MINISTER AND THE SON OF MENACHEM BEGIN IN THE PARTY POLL RESULTS OF WHICH WERE DELAYED BECAUSE OF FEARS OF VIOLENCE BY THE RIVALS' FOLLOWERS CHRISTOPHER TOLD A HOUSE SUBCOMMITTEE THE US AND ASIAN ALLIES WOULD CONSIDER IMPOSING STIFF SANCTIONS ON NORTH KOREA POSSIBLY EVEN A BAN ON FOOD SHIPMENTS IF IT CONTINUES TO REFUSE TO ALLOW INSPECTIONS OF ITS NUCLEAR FACILITIES PYONGYANG'S WITHDRAWAL FROM AN INTERNATIONAL TREATY HAS HEIGHTENED SUSPICIONS IT IS BUILDING NUCLEAR WEAPONS US MILITARY AUTHORITIES DROPPED CHARGES AGAINST A MARINE SERGEANT WHO SHOT AND KILLED A SOMALI YOUTH LAST MONTH BUT DECIDED TO BEGIN COURTMARTIAL PROCEEDINGS AGAINST ANOTHER MARINE FOLLOWING AN INCIDENT IN WHICH A SOMALI YOUTH WAS WOUNDED MEANWHILE A US AMPHIBIOUS ASSAULT GROUP WAS SENT TO KISMAYU IN A SHOW OF FORCE A US ENVOY MET WITH ANGOLAN REBEL LEADERS TO TRY TO REVIVE PEACE TALKS BETWEEN UNITA AND THE LUANDA GOVERNMENT THE TWO SIDES RESUMED THEIR CIVIL WAR AFTER REBEL LEADER SAVIMBI REFUSED TO ACCEPT DEFEAT IN SEPTEMBER ELECTIONS IN FIGHTING YESTERDAY GOVERNMENT TROOPS MOVED TO TAKE A UNITAHELD TOWN ABOUT 90 MILES FROM THE CAPITAL MITTERRAND TOLD THE LAST CABINET MEETING OF THE CURRENT SOCIALIST GOVERNMENT THAT SOCIAL UNREST PROBABLY WILL RISE UNDER THE COMING CONSERVATIVE ADMINISTRATION ACCORDING TO SEVERAL FRENCH NEWSPAPERS THE PRESIDENT ALSO HINTED HE MIGHT NOT SELECT CHIRAC AS PRIME MINISTER BECAUSE OF THE GAULLIST LEADER'S CALLS FOR HIS RESIGNATION A MODERATE EARTHQUAKE SHOOK THE PACIFIC NORTHWEST DAMAGING THE STATE CAPITOL BUILDING IN SALEM ORE A SCHOOL AND SEVERAL HIGHWAY BRIDGES PART OF THE CAPITOL WAS CLOSED AFTER CRACKS WERE FOUND IN ITS DOME THE EARTHQUAKE WHICH WAS MEASURED AT 53 ON THE RICHTER SCALE WAS CENTERED ABOUT 50 MILES SOUTHWEST OF PORTLAND ORE 9303260182 930326 DEFIANCE INC EXPECTS SHARPLY HIGHER PROFIT IN FISCAL 3RD QUARTER CLEVELAND DEFIANCE INC EXPECTS SHARPLY HIGHER EARNINGS FOR ITS FISCAL THIRD QUARTER AS A RESULT OF INCREASED AUTO AND TRUCK PRODUCTION COMBINED WITH IMPROVEMENT IN OPERATIONS SAID JERRY A COOPER PRESIDENT AND CHIEF EXECUTIVE NET FOR THE THIRD QUARTER ENDING MARCH 31 WILL JUMP TO BETWEEN 16 CENTS AND 20 CENTS A SHARE FROM 104000 OR TWO CENTS A SHARE A YEAR EARLIER MR COOPER SAID SALES WILL RISE TO BETWEEN 185 MILLION AND 20 MILLION HE ESTIMATED FROM 163 MILLION IN THE YEARAGO QUARTER DEFIANCE OBTAINS ONETHIRD OF ITS SALES AND A LARGER SHARE OF PROFITS FROM ENGINE PARTS SALES ARE RISING BECAUSE OF INCREASED PRODUCTION OF BOTH AUTOS AND DIESEL TRUCKS AND BECAUSE MORE VEHICLES EMPLOY ITS DEVICES TO IMPROVE FUEL EFFICIENCY NET FOR THE FIRST NINE MONTHS OF FISCAL 1993 WILL RISE TO BETWEEN 28 CENTS AND 32 CENTS A SHARE MR COOPER ESTIMATED MORE THAN THREE TIMES THE 521000 OR NINE CENTS A SHARE DEFIANCE EARNED A YEAR EARLIER SALES FOR THE NINE MONTHS WILL BE BETWEEN 539 MILLION AND 554 MILLION HE SAID UP FROM 509 MILLION A YEAR EARLIER MR COOPER DECLINED TO MAKE A PRECISE ESTIMATE OF EARNINGS FOR THE FOURTH QUARTER AND YEAR BUT HE SAID MANY OF THE FACTORS THAT CONTRIBUTED TO THE SHARPLY IMPROVED THIRDQUARTER RESULTS ARE EXPECTED TO CONTINUE THROUGH THE FOURTH QUARTER FOR ALL OF FISCAL 1992 DEFIANCE EARNED 909000 OR 15 CENTS A SHARE ON SALES OF 696 MILLION FOURTHQUARTER NET WAS SIX CENTS A SHARE SINCE 1986 DEFIANCE HAS INVESTED IN PROMISING NICHE MARKETS IN THE AUTO INDUSTRY BUT UNTIL VERY RECENTLY RESULTS HAVEN'T MEASURED UP TO EXPECTATIONS SAID MR COOPER THE COMPANY HAD LOSSES IN 1987 1988 AND 1991 AND ONLY ABOUT BROKE EVEN IN 1990 DEFIANCE EARNED 25 MILLION OR 50 CENTS A SHARE IN 1989 ITS BEST PERFORMANCE IN RECENT YEARS DEFIANCE INCREASED ITS CAPITAL SPENDING BUDGET FOR FISCAL 1993 TO 42 MILLION FROM THE 3 MILLION ORIGINALLY PLANNED MR COOPER SAID MANAGEMENT DECIDED TO ADD CAPACITY AT THE ENGINE PARTS UNIT HE SAID PARTLY TO ALLOW THAT UNIT TO PRODUCE A WIDER RANGE OF ENGINE PARTS 9303260181 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT MAKING MUSIC TEA AND GRITS CAN COUNTRY MUSIC FINALLY CATCH FIRE OUTSIDE THE US BY MEG COX GARTH BROOKS SOLD MORE RECORDS THAN MADONNA OR MICHAEL JACKSON LAST YEAR BUT WHEN HELMUT FEST TRIED TO GET THE COUNTRY CROONER'S TELEVISION SPECIAL AIRED IN GERMANY THE RESPONSE WAS GARTH WHO IT WAS QUITE AN EMBARRASSING THING FOR US TO HAVE THE BIGGEST ACT IN AMERICA AND HAVE IT BE A COUNTRY ARTIST SAYS MR FEST PRESIDENT OF THE GERMAN SUBSIDIARY OF EMI MUSIC GERMANS EQUATE AMERICAN COUNTRY MUSIC TO YODELING IN MY COUNTRY IT'S SOMETHING MOSTLY TRUCKERS LISTEN TO DESPITE THE RECENT COUNTRY BOOM IN AMERICA COUNTRY MUSIC JUST ISN'T COOL IN EUROPE AND EVEN GARTH BROOKS IS GOING TO HAVE A HARD TIME CHANGING THAT THERE'S AN IMAGE PROBLEM THAT GOES WAY BACK A LOT OF THE COUNTRY STARS FROM THE '70S LOOKED AND SOUNDED WEIRD TO PEOPLE OVER HERE SAYS PAUL CONROY THE BRITISH MANAGING DIRECTOR OF VIRGIN RECORDS' UK TERRITORY JUST FIVE YEARS AGO WHILE AT WARNER RECORDS MR CONROY TRIED TO BREAK A NUMBER OF COUNTRY ACTS IN ENGLAND INCLUDING RANDY TRAVIS COUNTRY MUSIC WAS A MAJOR LOVE FOR ME SO WARNER LET ME DO IT BUT I SPENT SO MUCH MONEY BRINGING RANDY HERE I NEARLY LOST MY JOB SAYS MR CONROY HE DID A NUMBER OF DATES EVEN PLAYED ALBERT HALL IN LONDON BUT HE SOLD ONLY ABOUT 40000 ALBUMS NONETHELESS THE MAJOR RECORD COMPANIES ARE BETTING THAT EUROPE AND EVEN ASIA WILL BE FERTILE NEW MARKETS FOR THE HIP YOUNG CROP OF SINGERS THAT HAS FUELED A COUNTRY BOOM IN THE US THEY BELIEVE THAT IF EUROPEANS ESPECIALLY GET A LOOK AT SINGERS LIKE GARTH BROOKS WHOSE STAGE ANTICS AND SOUND OWE AS MUCH TO ROCK AS TO COUNTRY THEY WILL SIGN ON FOR THE CATCHY MELODIES AND FORGET THE DATED ROY ROGERS/HANK WILLIAMS STEREOTYPES MORE THAN MERE FAITH FUELS NASHVILLE'S EXPECTATIONS THERE IS RECENT PROOF IN THE PERSON OF BILLY RAY CYRUS THE MUSCLEBOUND FORMER CAR SALESMAN WITH A PONYTAIL SHOT TO THE TOP OF BILLBOARD'S US POP CHART WITH ACHY BREAKY HEART FROM HIS DEBUT ALBUM SOME GAVE ALL THE SINGER'S LABEL THE NASHVILLE DIVISION OF POLYGRAM'S MERCURY RECORDS DECIDED TO PROMOTE HIM IN EUROPE THE SAME WAY THEY DID HERE AS A SEXY POP STAR MR CYRUS NEVER PERFORMS IN STANDARD COUNTRY DUDS SO THE LABEL DIDN'T EVEN HAVE TO ASK HIM TO LEAVE HIS COWBOY HAT AT HOME ON THE BASIS OF HIS SURPRISE TOP US HIT MERCURY ARRANGED A PERFORMANCE TRANSMITTED BY SATELLITE FROM NASHVILLE TO BBC'S ALLIMPORTANT TOP OF THE POPS VARIETY SHOW AS IN THE US THE LABEL DISTRIBUTED VIDEO PRESS KITS TO DANCE CLUBS IN MAJOR CITIES DEMONSTRATING HOW TO DO A SIMPLE ACHY BREAKY DANCE BEFORE LONG ACHY BREAKY WAS NO 2 ON THE BRITISH CHARTS AND A HIT FROM DENMARK TO AUSTRALIA IT'S ONE THING TO TALK ABOUT EFFORTS AND HOPES BUT BILLY RAY IS A CONCRETE EXAMPLE THAT TELLS ALL OF US IT IS POSSIBLE IT CAN BE DONE SAYS BRUCE HINTON HEAD OF MCA RECORDS/NASHVILLE LET'S GO FOR IT ALMOST EVERYBODY IS MCA HAS TARGETED TWO ATTRACTIVE YOUNG COUNTRY STARS FOR EXPORT TRISHA YEARWOOD AND VINCE GILL WARNER RECORDS' NASHVILLE DIVISION SENT DWIGHT YOAKUM TO A COUNTRY MUSIC FESTIVAL IN JAPAN LAST YEAR AND SONY MUSIC'S COLUMBIA LABEL HAS HIGH HOPES FOR GRAMMYWINNING MARYCHAPIN CARPENTER WHO RECENTLY PLAYED IN GLASGOW DUBLIN AND LONDON MORE IMPORTANT FOR THE FUTURE THE COUNTRY MUSIC TELEVISION CABLE CHANNEL WHICH HELPED SHAKE COUNTRY'S HAYSEED IMAGE IN THE US BEGAN BROADCASTING IN THE UK LAST FALL ALTHOUGH IT ONLY COUNTS 150000 UK SUBSCRIBERS COMPARED WITH 57 MILLION AMERICANS THE CHANNEL PLANS TO INVEST 20 MILLION OVER THE NEXT FIVE YEARS AND EXPECTS A MILLION SUBSCRIBERS ACROSS EUROPE BY YEAR'S END THE REACTION IN ENGLAND WHEN WE SHOWED OUR VIDEOS IN FOCUS GROUPS WAS WOW THIS IS JUST GREAT MUSIC' SAYS DAVID HALL PRESIDENT OF CMT IN EUROPE THE CHANNEL PLANS TO RUN INTERVIEW PIECES UP TO 15 MINUTES LONG TO INTRODUCE UNFAMILIAR ARTISTS BEFORE THEIR VIDEOS ARE BROADCAST COUNTRY MUSIC ISN'T ENTIRELY AN ALIEN CONCEPT OUTSIDE THE US INTRODUCED LARGELY THROUGH ARMED FORCES RADIO STARTING IN THE '60S COUNTRY MUSIC HAS SOME HARDCORE FANS ALREADY ESPECIALLY IN ENGLAND WHERE THERE ARE SEVERAL ANNUAL COUNTRY FESTIVALS A NUMBER OF COUNTRY SINGERS HAVE TOURED EUROPE REGULARLY GLEN CAMPBELL ONE OF THE MOST POPULAR HAS JUST CONCLUDED HIS 25TH ANNIVERSARY UK TOUR JOHNNY CASH BOXCAR WILLIE HANK WILLIAMS AND ALL THOSE GUYS WENT ABROAD ROUTINELY THEY HAD TO BECAUSE THE DOMESTIC MARKET WASN'T BIG ENOUGH TO SUPPORT THEM SAYS BOB SAPORITI VICE PRESIDENT OF MARKETING FOR WARNER/NASHVILLE BUT YOUNGER GROUPS LIKE ALABAMA STARTED MAKING SO MUCH MONEY HERE THEY STOPPED GOING ABROAD THIS VOID DEVELOPED IN PARTICULAR THE NOTION OF EXPORTING COUNTRY MUSIC CAME TO SEEM AS NOVEL TO YOUNG LABEL MANAGERS AS IT DOES TO THE ARTISTS THEMSELVES THE PROBLEM TODAY IS THAT A LOT OF ARTISTS AND THEIR MANAGERS WON'T SACRIFICE IMMEDIATE US SALES TO BUILD A WORLDWIDE CAREER SAYS JACK MCFADDEN A LONGTIME NASHVILLE MANAGER WHOSE CLIENTS INCLUDE MR CYRUS WE ARE CLEARLY TAKING MONEY OUT OF BILLY RAY'S POCKET TO DO THIS HE CAN'T EARN 100000 TO 150000 A DAY WHEN HE PERFORMS ABROAD LIKE HE DOES HERE HE'LL SPEND 18 DAYS IN AUSTRALIA IN APRIL AND WE'LL PROBABLY HIT EUROPE IN JULY BUT THIS GIVES A CAREER LONGEVITY JEFFREY KRUGER A BRITISH IMPRESSARIO WHO HAS BEEN IMPORTING AMERICAN JAZZ AND COUNTRY ACTS SINCE THE 1950S SAYS HE BELIEVES MR CYRUS HAS A REAL CHANCE TO BE A MONSTER HIT IN ENGLAND AS DOES GARTH BROOKS BUT HE AGREES WITH MR MCFADDEN THAT REAL COMMITMENT BY THE PERFORMERS IS REQUIRED YOU HAVE TO SHOW YOUR FACE GET KNOWN BY THE PEOPLE HERE AND GIVE A GOOD PERFORMANCE SAYS MR KRUGER AND THEY HAVE TO BE PATIENT IS GARTH BROOKS WILLING TO SING FOR A FEW THOUSAND PEOPLE WHEN HE CAN FILL A 45000SEAT ARENA IN AMERICA MR BROOKS' LABEL EMI'S LIBERTY RECORDS IN NASHVILLE INSISTS THAT ITS SUPERSTAR IS WILLING TO START SMALL AND WILL TOUR ABROAD IF HE CAN EVER FIT IT INTO HIS SCHEDULE CINDY WILSON BROUGHT IN TO HEAD AN INTERNATIONAL DIVISION AT LIBERTY LESS THAN A YEAR AGO SAYS THAT THOUGH THE LABEL IS DETERMINED TO MAKE MR BROOKS A WORLDWIDE STAR HE WON'T TOUR EUROPE UNTIL 1994 A FOREIGN TOUR WAS PLANNED FOR THIS YEAR BUT MR BROOKS OVERWHELMED BY THE CRUSH OF FAME AND THE BIRTH OF HIS FIRST CHILD DECIDED TO CUT BACK ON SOME OF HIS WORK COMMITMENTS THE LABEL WORRIED THAT ITS EUROPEAN DIVISIONS WOULD BE LUKEWARM MARKETERS OF AN UNKNOWN STAR IN AN UNPOPULAR GENRE FLEW PLANELOADS OF EXECUTIVES AND EUROPEAN RETAILERS TO SEE MR BROOKS PERFORM IN THIS COUNTRY MR FEST THE HEAD OF EMI'S GERMAN TERRITORY WAS AMONG THOSE SENT TO SALT LAKE CITY UTAH TO OBSERVE MR BROOKS IN ACTION I PERSONALLY DON'T LIKE COUNTRY MUSIC BUT THIS WAS GREAT MUSIC AND A GREAT SHOW MORE IN THE TRADITION OF BOB SEEGER AND BRUCE SPRINGSTEEN THAN STRAWPICKING MUSIC SAYS MR FEST HE HAS BEEN ABLE TO CONVINCE GERMAN TELEVISION TO RUN THE GARTH BROOKS SPECIAL AND HE IS NOW EAGER TO GET THE SINGER TO GERMANY EVEN OPTIMISTS THOUGH HAVE SOME RESERVATIONS ABOUT HOW SUCCESSFUL COUNTRY MUSIC CAN BE ABROAD PART OF THEIR SKEPTICISM THEY SAY REVOLVES AROUND THE NAME ITSELF WE SHOULD DELIBERATELY AVOID USING THE TERM COUNTRY MUSIC BECAUSE EUROPEANS THINK THE SONGS WILL BE ABOUT COWBOYS AND THEIR HORSES AND THEY AREN'T ANYMORE SAYS MR FEST OF EMI ROY WUNCH PRESIDENT OF SONY MUSIC/NASHVILLE AGREES THAT THE GENRE CAN'T BE EXPORTED WHOLESALE YOU CAN'T TAKE A BUSHEL BASKET OF COUNTRY MUSIC AND DUMP IT INTO EUROPE AND THINK IT WILL SPARK A TREND SAYS MR WUNCH YOU HAVE TO GO ONE ACT ONE ALBUM AT A TIME EXPORTING COUNTRY MUSIC WON'T BE EASY BUT GIVEN THE TRENDS IN GLOBAL MUSIC SALES IT IS CLEAR WHY THE ATTEMPT IS IRRESISTIBLE I'VE BEEN TRYING TO GET TRAVIS TRITT TO GO ABROAD FOR YEARS BUT HE'S BEEN MAKING SO MUCH MONEY HERE SO FAST I COULDN'T GET HIM TO GO SAYS MR SAPORITI OF WARNER BUT THE US IS 30 OF THE MARKET NOW AND TO ME THAT'S CHUMP CHANGE I'LL BE DAMNED IF I'LL SETTLE FOR THAT WHEN 70 IS ELSEWHERE 9303260180 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT HOLLYWORLD LEADERS OF THE PACK A LOOK AT SIX OF THE GLOBALENTERTAINMENT POWER PLAYERS BY LAURA LANDRO THE HEIR TO A FAMILY NEWSPAPER BUSINESS A ONETIME ECONOMIC SPECIALIST IN IRAN A FORMER NETWORK EXECUTIVE AN ERSTWHILE MOVIE PUBLICIST A HOLLYWOOD TALENT AGENT AND A SOLIDSTATE PHYSICIST WITH A PILOT'S LICENSE WITH BACKGROUNDS AS DIVERSE AS THE COMPANIES THEY RUN THE TOP US PLAYERS IN THE GLOBALENTERTAINMENT BUSINESS HAVE ONE THING IN COMMON AMBITIONS TO CREATE CULTURAL EMPIRES THAT TRANSCEND BORDERS LANGUAGE BARRIERS AND LOCAL CUSTOMS FIVE OF THE EXECUTIVES WHO RANK AS THE POWER ELITE ON THE US TEAM HAPPEN TO RUN BUSINESSES THAT REMAIN IN AMERICAN HANDS FOR NOW A SIXTH EXECUTIVE ANSWERS TO A FOREIGN PARENT COMPANY BUT HAS UNUSUAL CLOUT IN STRATEGIC DECISIONMAKING WHILE ALL AGREE THAT THE GLOBAL MARKETPLACE PRESENTS VAST OPPORTUNITIES FOR GROWTH SOME ALSO CAUTION THAT BIG OBSTACLES LIE AHEAD AND ALL FACE THEIR OWN SHARE OF STRATEGIC PROBLEMS AND MANAGERIAL CHALLENGES AS THEY JUGGLE THEIR BIG US OPERATIONS WITH THE INCREASING DEMANDS OF THE WORLD MARKET THIS ENTERTAINMENT MOGUL WAS BORN WITH MEDIA'S EQUIVALENT OF A SILVER SPOON IN HIS MOUTH HE INHERITED A FAMILYOWNED NEWSPAPER COMPANY IN HIS HOME TOWN OF ADELAIDE AUSTRALIA BUT NEWS CORP MIGHT HAVE REMAINED IN THE OUTBACK WITHOUT MR MURDOCH'S RELENTLESS DRIVE AND WHAT MANY CALL HIS RUTHLESS AMBITION THE NEWS CORP CHAIRMAN 62 YEARS OLD RANKS AS THE FIRST TRULY GLOBAL MOGUL AND A BONA FIDE PLAYER ON THE US TEAM THANKS TO THE AMERICAN CITIZENSHIP HE ACQUIRED EIGHT YEARS AGO THE COMPANY ITSELF HOWEVER REMAINS BASED IN AUSTRALIA THE US HE BELIEVES IS THE PROVING GROUND FOR THE MARRIAGE OF ENTERTAINMENT AND COMMUNICATIONS AND FOR THE TECHNOLOGY TO DELIVER THE GOODS AND SERVICES TO CONSUMERS THIS IS WHERE THE BATTLE WILL BE FOUGHT TO SEE WHERE THE DEMAND IS AND WHAT PEOPLE WILL ACTUALLY WANT TO BUY SAYS MR MURDOCH IT'S VERY DIFFICULT TO BE GLOBAL WITHOUT AN AMERICAN BASE MR MURDOCH'S FEATS ARE ALL THE MORE IMPRESSIVE CONSIDERING THAT HIS AMBITION NEARLY CAUSED HIM TO LOSE IT ALL CRIPPLING DEBT TAKEN ON FOR HIGHPRICED ACQUISITIONS SUCH AS THE 3 BILLION PURCHASE OF TV GUIDE PUBLISHER TRIANGLE COMMUNICATIONS ALMOST FORCED NEWS CORP INTO LIQUIDATION IN 1990 BUT AFTER A MAJOR DEBT RESTRUCTURING NEWS CORP WOULD BE BACK IN THE EXPANSION BUSINESS IF IT WANTS TO BE ITS LONGTERM DEBT WAS GIVEN THE COVETED INVESTMENTGRADE RATING BY STANDARD & POOR'S CORP IN JANUARY MOST IMPORTANT MR MURDOCH IS STILL IN POSSESSION OF A 35 STAKE IN HIS COMPANY AND ALL ITS TROPHY ASSETS THE TWENTIETH CENTURY FOX FILM STUDIO THE FOX PROGRAMMING NETWORK AND ITS STATIONS A 50 STAKE IN THE INCREASINGLY SUCCESSFUL BRITISH SKY BROADCASTING VENTURE TV GUIDE AND HARPERCOLLINS PUBLISHING THOUGH HE HAS SOLD MANY OF HIS PUBLISHING PROPERTIES IN THE US HE MAINTAINS A NEWSPAPER EMPIRE OVERSEAS INCLUDING THE PRESTIGIOUS LONDON TIMES AND THE TABLOIDS SUN AND NEWS OF THE WORLD MR MURDOCH SAYS THE COMPANY ISN'T PLANNING ANY MORE ACQUISITIONS RIGHT NOW WE'RE IN THE BUSINESS OF EXTENDING OUR EXISTING FRANCHISES HE SAYS DEEMED BOTH VISIONARY AND AUTOCRATIC MR MURDOCH HAS LET NOTHING STAND IN HIS WAY WHEN US REGULATIONS BARRED HIM FROM ACQUIRING BROADCAST PROPERTIES HE GAVE UP HIS AUSTRALIAN CITIZENSHIP TO BUY THE SIX US TELEVISION STATIONS THAT BECAME A LINCHPIN OF HIS FOURTH PROGRAMMING NETWORK HE BROKE DOWN THE NEWSPAPER UNIONS IN THE UK WEATHERING A VIOLENT STRIKE AND WITHERING PERSONAL ATTACKS BY BRITAIN'S LIBERALS BUT HIS ABILITY TO OVERCOME OBSTACLES ALSO PARTLY CAUSED HIS WORST NIGHTMARE BY USING AUSTRALIAN ACCOUNTING RULES THAT ALLOWED HIM TO REGULARLY REVALUE HIS ASSETS HE WAS ABLE TO PERSUADE BANKS TO CONTINUE TO LEND HIM BILLIONS THAT DEBT EVENTUALLY ALMOST DESTROYED HIS EMPIRE MR MURDOCH ACKNOWLEDGES THAT THE RESTRUCTURING DIVERTED HIS ATTENTION FROM HIS GLOBAL EMPIRE WE WERE GOING THROUGH HELL HE SAYS NOW BUT HE HAS THROWN HIMSELF BACK INTO OPERATIONS WITH A VENGEANCE LITERALLY GOING HOLLYWOOD LAST YEAR HE AND WIFE ANNA MOVED TO LOS ANGELES FROM NEW YORK PURCHASING A 7 MILLION ESTATE ONCE OWNED BY MCA FOUNDER JULES STEIN MR MURDOCH ROLLED UP HIS SLEEVES AND WENT TO WORK AT FOX INC IMMERSING HIMSELF IN THE OPERATIONS OF THE NETWORK AND THE FILM STUDIO BUT HE ALSO QUICKLY ALIENATED THE VERY EXECUTIVES WHO HAD HELPED BUILD HIS HOLLYWOOD EMPIRE IT DIDN'T TAKE LONG FOR MR MURDOCH'S TOP US ENTERTAINMENT EXECUTIVE FOX CHAIRMAN BARRY DILLER TO PACK HIS BAGS MR DILLER ALREADY PUT OFF BY THE BOSS'S MEDDLING QUIT AFTER MR MURDOCH REFUSED TO GIVE HIM AN EQUITY STAKE IN FOX'S TV BUSINESS MR DILLER SUBSEQUENTLY ACQUIRED A 25 STAKE IN HOMESHOPPING CHANNEL QVC NETWORK INC AND BECAME ITS CHIEF EXECUTIVE MANY BELIEVE HE WILL EVENTUALLY USE IT AS A SPRINGBOARD FOR A NEW PROGRAMMING NETWORK THAT WILL COMPETE WITH FOX MR DILLER WAS QUICKLY FOLLOWED OUT THE DOOR BY TWO OTHER KEY FOX EXECUTIVES 20TH CENTURY FOX STUDIO CHIEF JOE ROTH UNHAPPY WITH HIS COMPENSATION AND JAMIE KELLNER THE HEAD OF FOX BROADCASTING WALL STREET SKITTISH OVER MANAGEMENT CHANGES AND BOXOFFICE FLOPS SLICED 6 OFF THE VALUE OF NEWS CORP'S AMERICAN DEPOSITARY RECEIPTS IN ONE DAY AFTER MR KELLNER LEFT IN JANUARY MR MURDOCH CRITICS SAY APPEARS TO THINK HE CAN RUN THE ENTIRE SHOW BY HIMSELF BUT WITHOUT TOP TALENT IN THE CREATIVE SIDE OF THE ENTERTAINMENT BUSINESS THEY ADD HIS TROPHY ASSETS MAY SOON BE TARNISHED MR MURDOCH FOR HIS PART SAYS HE ISN'T RUNNING THE WHOLE SHOW HE SAYS HE SPENDS HALF HIS TIME ON FOX MATTERS AND ABOUT 35 OF THAT ON THE FOX NETWORK ALTHOUGH HE HASN'T HIRED ANY HIGHPROFILE HOLLYWOOD VETERANS MR MURDOCH INSISTS THAT HIS HOMEGROWN NEW MANAGEMENT TEAM CAN MOVE THE COMPANY FORWARD MR MURDOCH PICKED A FOX TV EXECUTIVE PETER CHERNIN TO RUN THE STUDIO THE JURY IS STILL OUT ON HIS ABILITIES WE ARE STILL MORE STABLE THAN MOST STUDIOS AND WE HAVE PROMOTED FROM WITHIN MR MURDOCH SAYS ALTHOUGH MR ROTH WAS HIGHLY REGARDED IN HOLLYWOOD AND OVERSAW A NUMBER OF RECENT SUCCESSES SUCH AS HOME ALONE 2 THE FOX STUDIO PROFITS WERE OFF 55 IN THE SIX MONTHS ENDED IN DECEMBER BECAUSE OF SUCH COSTLY BOMBS AS TOYS AND HOFFA GETTING THE ENTERTAINMENT DIVISION INTO SHAPE WITH A REALLY STRONG PRODUCTION SLATE OF FILMS AND TV IS THE PRECURSOR TO REALLY GOING GLOBAL SAYS MR MURDOCH MR MURDOCH IS KEENLY INTERESTED IN EXPANDING THE AUDIENCE OF THE FOX NETWORK WHICH IS CURRENTLY SKEWED TO 12TO22YEAROLDS AND HE IS PURSUING PROGRAMS AIMED AT OLDER VIEWERS HE IS ALSO LOOKING TO PRODUCE AND OWN PROGRAMMING THAT IS AS EXPORTABLE AS THE SIMPSONS WHICH IS ALREADY HUGE OVERSEAS HE NOTES MR MURDOCH HAS PARTICULARLY HIGH HOPES FOR BRITISH SKY BROADCASTING WHICH DELIVERS SUBSCRIPTIONTV SERVICE TO HOMES IN BRITAIN AFTER YEARS OF LOSSES THE BUSINESS IS FINALLY TURNING A PROFIT AND MR MURDOCH SAYS I'D LIKE TO REPEAT THAT SUCCESS ELSEWHERE THOUGH THE SERVICE IS DELIVERED VIA SATELLITE DIRECTLY TO HOMES IN BRITAIN MR MURDOCH SAYS IT HAS THE ABILITY TO OFFER THE SAME TYPE OF SERVICE VIA CABLE TELEVISION IN OTHER PARTS OF EUROPE SO FAR FOX HAS NOT BEEN A PLAYER IN THE CABLEPROGRAMMING ARENA MR MURDOCH SAYS THAT FOX IS STARTING CABLE CHANNELS IN LATIN AMERICA AND CONTINUES TO WORK ON CABLENETWORK IDEAS FOR THE US BUT HE CAUTIONS THAT SELLING PROGRAMS ABROAD IS TRICKY PARTICULARLY IN WESTERN AND EASTERN EUROPE WHERE THERE IS A PUSH FOR QUOTAS ON US PROGRAMMING THERE IS A VAST OPPORTUNITY BUT YOU HAVE TO RECOGNIZE THERE ARE CONSERVATIVE FORCES AT WORK DESIGNED TO PROTECT LOCAL CULTURES MR MURDOCH SAYS YOU ALSO HAVE CENSORSHIP AND AUTHORITARIAN REGIMES AND THEN TASTES ARE DIFFERENT THE SOFTSPOKEN MR LEVIN ASCENDED TO THE TOP AFTER YEARS AS THE STRATEGIST BEHIND THE THRONE MR LEVIN 53 GOT THE TITLE OF COCHIEF EXECUTIVE IN FEBRUARY OF 1992 AFTER THE OUSTER OF HIS LONGTIME COLLEAGUE AND RIVAL NJ NICHOLAS JR IN DECEMBER HE BECAME SOLE CHIEF EXECUTIVE WHEN CHAIRMAN AND COCHIEF EXECUTIVE STEVEN J ROSS DIED AFTER A BATTLE WITH PROSTATE CANCER MR LEVIN INHERITS AN EMPIRE IN FAR BETTER SHAPE THAN IT WAS AT THE TIME OF THE 1989 MERGER OF TIME INC AND WARNER COMMUNICATIONS INC DEBT HAS BEEN PARED TO MORE MANAGEABLE LEVELS THE COMPANY HAS ATTRACTED TWO JAPANESE INVESTORS AND IT IS AMONG THE MOST DIVERSIFIED OF THE ENTERTAINMENT GIANTS WITH LEADING POSITIONS IN FILMED ENTERTAINMENT CABLETELEVISION SYSTEMS AND PROGRAMMING RECORDED MUSIC AND PUBLISHING TIME WARNER IS ALSO SCRAMBLING TO BE ON THE CUTTING EDGE OF HOMEENTERTAINMENT AND INFORMATION TECHNOLOGY BUT MR ROSS'S DEATH LEAVES MR LEVIN WITH SOME BIG SHOES TO FILL THOUGHTFUL AND LOWKEY MR LEVIN SUCCEEDS A FLAMBOYANT ALMOST LEGENDARY BOSS WHOSE LOYALISTS REVERED HIM AS A CHARISMATIC VISIONARY THREE YEARS AFTER THE MERGER TIME WARNER EXECUTIVES FROM VARIOUS DIVISIONS ATTEST THAT THEY ARE ACTING AS ONE ENTITY BUT THERE REMAIN DEEP CULTURAL AND STYLISTIC DIFFERENCES IN THE HOLLYWOODORIENTED BUSINESSES FROM THE WARNER SIDE AND THE MORE BUTTONEDDOWN PUBLISHING LEGACY OF THE TIME OPERATIONS AND THE JURY IS STILL OUT ON WHETHER MR LEVIN HAS THE RIGHT STUFF TO MELD IT ALL TOGETHER AND FOLLOW MR ROSS'S STRATEGIC PATH MR LEVIN FOR HIS PART LEAVES NO DOUBT THAT HE IS COMMITTED TO THE SAME VISION A GLOBAL ENTERTAINMENT GIANT UNFETTERED BY LOCAL BOUNDARIES IT WAS PART OF OUR ORIGINAL INTENT TO ACHIEVE INTERNATIONAL CITIZENSHIP AND WE'RE DOING THAT HE SAYS I AM AS COMFORTABLE BEING A JAPANESE COMPANY AS I AM AS AN AMERICAN COMPANY MR LEVIN AN ATTORNEY BY TRAINING SPENT MOST OF HIS CAREER AT TIME WHERE HE ARRIVED IN 1972 AFTER A STINT WITH AN INTERNATIONAL ECONOMICDEVELOPMENT CONCERN IN IRAN HE WAS AN EARLY PIONEER IN THE NASCENT CABLETV INDUSTRY AND DEVELOPED TIME'S HOME BOX OFFICE UNIT'S STRATEGY OF BEAMING ITS PROGRAMMING TO CABLE OPERATORS VIA SATELLITE A MOVE THAT HELPED REVOLUTIONIZE THE CABLE INDUSTRY BY CREATING THE FIRST NATIONAL CABLE NETWORK ALTHOUGH MR LEVIN DOESN'T SHARE THE RUTHLESS REPUTATION OF SOME OF HIS PEERS IN THE US ENTERTAINMENT INDUSTRY HE HAS PROVED BOTH CALCULATING AND POLITICALLY SAVVY AS VICE CHAIRMAN HE BECAME CLOSE TO MR ROSS AFTER THE MERGER WHILE MR NICHOLAS THE DESIGNATED SUCCESSOR AND COCHIEF EXECUTIVE WAS INCREASINGLY ON THE OUTSIDE WHEN MR NICHOLAS WAS ABRUPTLY FIRED FOR RESISTING MR ROSS'S STRATEGY MR ROSS TURNED TO MR LEVIN TO SUCCEED MR NICHOLAS AND ULTIMATELY TAKE OVER THE COMPANY MR LEVIN WAS ASSURED A RELATIVELY SMOOTH TRANSITION ON THE DAY OF MR ROSS'S DEATH A BOARDROOM SHAKEUP REMOVED MANY OF THE OLD ROSS LOYALISTS FROM THE TIME WARNER BOARD AND SOLIDIFIED MR LEVIN'S SUPPORT THERE AND TO MR LEVIN'S CREDIT NO OTHER EXECUTIVE FROM EITHER THE TIME OR WARNER OPERATIONS IS REGARDED AS A STRONGER CANDIDATE TO LEAD THE COMPANY BUT LEADERSHIP HASN'T BEEN EASY LAST YEAR WHILE MR ROSS WAS ON A LEAVE OF ABSENCE MR LEVIN PUBLICLY SUPPORTED WARNER RECORDS' RAPPER ICET IN HIS CONTROVERSIAL POLICEBASHING SONG COP KILLER TIME WARNER'S POSITION DREW ATTACKS FROM POLICE ASSOCIATIONS AND WALL STREET INVESTORS THE COMPANY LATER CUT THE OFFENDING TRACK FROM NEW RELEASES OF THE RECORD IN A SEEMING ABOUTFACE TIME WARNER IN JANUARY SEVERED ITS CONTRACT BY MUTUAL AGREEMENT WITH ICET UNLIKE MR ROSS WHO CULTIVATED CLOSE PERSONAL RELATIONSHIPS WITH HOLLYWOOD TALENT SUCH AS STEVEN SPIELBERG BARBRA STREISAND AND CLINT EASTWOOD MR LEVIN IS A MORE RESERVED EXECUTIVE WHOSE CAREER HAS PUT HIM IN CLOSER CONTACT WITH CABLETV EXECUTIVES AND FINANCIAL TYPES HOWEVER MOVIE AND RECORD EXECUTIVES AT THE COMPANY SAY MR LEVIN IS COMFORTABLE WITH THE LEGACY OF THE ROSS DAYS INCLUDING THE CORPORATE JETS USED TO FERRY STARS AROUND THE GLOBE AND THE GUEST HOUSES TO PAMPER THEM IN ACAPULCO AND ASPEN AND MR LEVIN HAS BEEN MORE OF A HOBNOBBER LATELY SHOWING UP AT THE PARTY FOR WARNER BOOKS' RELEASE OF MADONNA'S SEX TOME AND ACCOMPANYING KEVIN COSTNER TO THE JAPANESE PREMIERE OF WARNER BROS HIT THE BODYGUARD MR LEVIN ALSO ASSUMES CONTROL OF A TIME WARNER THAT HAS NEW GLOBAL BUSINESS PARTNERS ITOCHU CORP AND TOSHIBA CORP WHICH TOGETHER SPENT 1 BILLION TO ACQUIRE A 125 STAKE IN TIME WARNER ENTERTAINMENT WHICH INCLUDES THE COMPANY'S ENTERTAINMENT BUSINESSES THE AIM WAS TO HELP PAY DOWN DEBT AND USE THE JAPANESE PARTNERS TO FORGE NEW BUSINESSES IN ASIA MR LEVIN DESCRIBES THE ARRANGEMENT AS A BLOOD RELATIONSHIP BETTER THAN AN OUTRIGHT ACQUISITION OR A JOINT VENTURE BECAUSE IT ENABLES THE TWO SIDES TO BE PARTNERS THE TWO SIDES OWN 50 OF A JAPANESE SUBSIDIARY THAT WILL BE THE VEHICLE FOR INTRODUCING TIME WARNER PRODUCTS INTO ASIA WHEN WE DO THEATERS THEME PARKS OR TIME MAGAZINE IT WILL BE UNDER THE AUSPICES OF THE JAPANESE COMPANY HE SAYS MR LEVIN HAS HAD LESS LUCK IN THE SEARCH FOR A EUROPEAN PARTNER TO MAKE A SIMILAR INVESTMENT THE COMPANY HAS TURNED MUCH OF ITS EFFORTS TO FINDING A PARTNER IN THE US THAT CAN INJECT BOTH CASH AND TECHNOLOGICAL PROWESS TALKS THAT BEGAN LAST YEAR WITH INTERNATIONAL BUSINESS MACHINES CORP HAVE GONE NOWHERE AND THE COMPUTER GIANT SEEMS AN UNLIKELY CANDIDATE NOW GIVEN ITS OWN RETRENCHMENT AMONG POSSIBLE PARTNERS FOR TIME WARNER A TELEPHONE COMPANY OR ANOTHER COMPUTER CONCERN THE FUTURE MR LEVIN BELIEVES WILL BE IN DEVELOPING THE NEXT GENERATION OF EMPLOYEES PEOPLE OVER 50 TEND TO SEE THE WORLD IN BALKANIZED TERMS HE SAYS FOR THE YOUNG PEOPLE COMING UP IN THIS COMPANY WE WANT TO PROVIDE OPPORTUNITIES TO MOVE BACK AND FORTH BETWEEN COUNTRIES AND FEEL COMFORTABLE VIEWING THE WORLD AS ONE STAGE THE KING OF DOPEY DRIVE TURNED ADVERSITY TO HIS FAVOR WHEN HE LEFT PARAMOUNT PICTURES IN 1984 A ONETIME ABC EXECUTIVE HE WAS PASSED OVER FOR THE TOP JOB AT THE STUDIO AFTER THE DEPARTURE OF HIS THENBOSS BARRY DILLER BUT MR EISNER QUICKLY LANDED THE CHAIRMAN AND CHIEF EXECUTIVE'S POST AT THE VENERABLE BUT FLOUNDERING DISNEY RECRUITING HIS BEST PALS FROM PARAMOUNT INCLUDING MOVIE WHIZ JEFFREY KATZENBERG MR EISNER QUICKLY REBUILT DISNEY FROM AN INDUSTRY ALSORAN WITH SOME GREAT CARTOONS IN ITS LIBRARY INTO THE HOTTEST STUDIO AND THEMEPARK OPERATOR IN THE WORLD TO RELEASE CONTEMPORARY FILMS SUCH AS PRETTY WOMAN AIMED AT ADULTS HE STARTED TWO NEW STUDIOS WHOSE NAMES TOUCHSTONE PICTURES AND HOLLYWOOD PICTURES INDICATED NO AFFILIATION WITH DISNEY TO UNSUSPECTING MOVIEGOERS WHEN WE ARRIVED AT DISNEY FOR THE FIRST FEW YEARS ALL WE COULD FOCUS ON WAS REVITALIZING THE ANIMATION BUSINESS GETTING TOUCHSTONE GOING AND GETTING THE THEME PARKS UP AND RUNNING AGAIN HE SAYS OUR PRODUCTS HAVE BEEN OUTSIDE THE US FOR DECADES BUT ALL OF A SUDDEN WE REALIZED THAT THE OPPORTUNITIES FOR GROWTH OUTSIDE THE US ARE GOING TO BE MUCH GREATER IN THE FUTURE THAN IN THE US MR EISNER 50 YEARS OLD IS PROBABLY THE ONLY ENTERTAINMENT MOGUL WHOSE FACE MIGHT BE FAMILIAR TO THE AVERAGE TV VIEWER ONE OF HIS FIRST MOVES WAS TO PUT HIMSELF ON THE AIR AS THE HOST OF THE WEEKLY WALT DISNEY SHOW THE SPOTLIGHT MR DISNEY HIMSELF HAD OCCUPIED FOR A WHOLE GENERATION OF SUNDAY NIGHT FAMILY VIEWERS MR EISNER STILL REFERS TO HIS BEHEMOTH AS A SMALL FAMILY COMPANY AND HE FILLED THE FIRST FOUR PAGES OF THE COMPANY'S 1992 ANNUAL REPORT WITH A FOLKSY LETTER THAT MENTIONS HIS THREE SONS ANDERS MY 14YEAR OLD HOCKEY GOALIE SON INSPIRED OUR DISNEY MOVIE SMASH THE MIGHTY DUCKS BUT MR EISNER'S WARM AND CUDDLY IMAGE BELIES HIS APPROACH TO BUSINESS REGARDED BY COMPETITORS AS A FIERCE ADVERSARY MR EISNER AND HIS CORPORATE MOUSEKETEERS FREQUENTLY RESORT TO ROUGH TACTICS TO PROTECT DISNEY'S TURF ON HIS WATCH DISNEY'S BATTLES HAVE RANGED FROM MENACING THREE DAYCARE CENTERS WITH THREATS OF LAWSUITS FOR DEPICTING DISNEY CHARACTERS ON THEIR BUILDINGS WITHOUT PERMISSION TO TUSSLING WITH WHEELCHAIRCONFINED SINGER PEGGY LEE OVER SONG ROYALTIES MR EISNER MAKES NO BONES ABOUT IT THE MOST VALUABLE THING WE HAVE ALL OVER THE WORLD IS OUR TRADEMARKS AND OUR CHARACTERS HE SAYS IF WE DON'T PROTECT THAT IT'S GONE BUT MR EISNER IS ALSO A SAVVY GLOBAL DEALMAKER HE HAS MANAGED TO LET INVESTORS MANY OF THEM FOREIGN FOOT THE BILL FOR MUCH OF DISNEY'S FILM OUTPUT WITHOUT GIVING UP CONTROL OR TOO HIGH A RETURN DISNEY RAISED NEARLY 15 BILLION FROM 1985 TO 1990 THROUGH A SERIES OF LIMITED PARTNERSHIPS FOR EXAMPLE TOUCHWOOD PACIFIC PARTNERS I RAISED 600 MILLION FROM JAPANESE INVESTORS TO PAY FOR ABOUT TWO YEARS' WORTH OF MOVIE PRODUCTION OR 20 TO 30 FILMS LAST OCTOBER DISNEY RAISED 400 MILLION FROM A COMBINED US PRIVATE PLACEMENT AND EUROBOND OFFERING MR EISNER SAYS THE COMPANY HAS NO INTEREST IN PRODUCING MOVIES FOR LOCAL MARKETS ITS MAIN GOAL IS TO CONTINUE TO EXPORT SUCH HITS AS ITS ANIMATED BEAUTY AND THE BEAST WHICH DID EVEN BETTER OVERSEAS THAN IT DID IN THE US AFTER YEARS OF PAYING WARNER BROS TO DISTRIBUTE ITS FILMS OVERSEAS DISNEY RECENTLY SET UP ITS OWN FOREIGNDISTRIBUTION NETWORK ITS FIRST RELEASE WAS THE HIT SISTER ACT MR EISNER TICKS OFF THE OTHER SUCCESSES OVERSEAS DISNEY BROADCASTS THE MOST POPULAR PROGRAM IN RUSSIA IT WAS THE LEADING INTERNATIONAL VIDEOCASSETTE DISTRIBUTOR LAST YEAR DISNEY'S 141 MAGAZINES IN 28 LANGUAGES REACHED 30 MILLION WEEKLY READERS AND THE COMPANY HAD A TOTAL OF 193 DISNEY STORES OPEN AS OF LAST DECEMBER WITH PLANS FOR AN EVENTUAL 500 INCLUDING 100 IN EUROPE AND 100 IN ASIA THE BIG QUESTION MARK IS EURO DISNEY WHICH OPENED IN FRANCE LAST YEAR IN THE FIRST QUARTER ENDED DEC 31 DISNEY REPORTED A 43 MILLION LOSS ON ITS 49 STAKE IN THE EUROPEAN CONCERN WHICH IT MANAGES BUT THE QUARTERLY LOSS WAS PARTLY OFFSET BY ROYALTIES AND OTHER INCOME AND WITH A STRONG BOX OFFICE HOME VIDEO AND DOMESTIC THEMEPARK BUSINESS MR EISNER WAS STILL ABLE TO REPORT A 25 INCREASE IN NET INCOME AT DISNEY MR EISNER WON KUDOS FROM DISTRAUGHT INVESTORS IN EURO DISNEY LAST YEAR WHEN HE AGREED TO DEFER SOME OF THE MANAGEMENT FEES DISNEY RECEIVES FROM EURO DISNEY FOR TWO YEARS THE TOUGH STARTUP IN FRANCE ISN'T DETERRING MR EISNER FROM FURTHER FOREIGN EXPANSION THE COMPANY IS WEIGHING A SECOND THEME PARK NEARBY AND A SECOND PARK IN JAPAN WHERE IT BUILT THE HIGHLY SUCCESSFUL TOKYO DISNEYLAND A DECADE AGO I WOULD BE SURPRISED IF EURO DISNEY WASN'T A SUCCESS HE SAYS BUT TO DO IT RIGHT WAS NOT INEXPENSIVE MR EISNER INSISTS DISNEY IS NOT OUT TO DOMINATE OTHER COUNTRIES' CULTURE OR OWN DISTRIBUTION SYSTEMS SUCH AS TV STATIONS AND CABLE IN FOREIGN COUNTRIES ALTHOUGH HE SAYS HE ADMIRES AND EVEN ENVIES COMPETITORS SUCH AS NEWS CORP THAT HAVE BEGUN INVESTING IN SUCH OPERATIONS OVERSEAS WE'RE PROBABLY BETTER OFF WORRYING ABOUT THE THIRD ACT OF ALADDIN' HE SAYS WHILE MR EISNER HAS BUILT UP DISNEY'S BASIC BUSINESSES HE STOOD ON THE SIDELINES DURING RECENT YEARS AS COMPETITORS SPENT HEAVILY TO GOBBLE UP RECORD COMPANIES TELEVISION STATIONS AND PUBLISHING CONCERNS OR WERE BEING BOUGHT BY OTHER COMPANIES WE GENERALLY HAVE NOT MADE BUSINESS PARTNERSHIPS WITH DOMESTIC OR INTERNATIONAL PLAYERS AND WHERE WE HAVE STRICTLY FINANCIAL PARTNERS WE MAINTAIN MANAGEMENT AND QUALITY CONTROL HE SAYS DISNEY HAS STARTED ITS OWN MUSIC AND PUBLISHING OPERATIONS INTERNALLY AND UNDER MR EISNER IT HAS BECOME A MAJOR FORCE IN SUPPLYING TV SHOWS TO THE NETWORKS AND FOR SYNDICATION TO TV STATIONS THOUGH ITS DISNEY CHANNEL PAYCABLE NETWORK REMAINS SMALL POTATOES NEXT TO RIVALS SUCH AS TIME WARNER'S HOME BOX OFFICE IT CONTINUES TO GROW AT A FASTER CLIP DISNEY'S SUCCESS UNDER HIS TENURE HAS MADE MR EISNER ONE OF THE HIGHEST PAID CORPORATE EXECUTIVES IN AMERICA HE CREATED A STIR IN DECEMBER WHEN HE EXERCISED FIVE MILLION STOCK OPTIONS SELLING 3450000 SHARES FOR AN INDICATED PROFIT OF 1269 MILLION BEFORE PERSONAL TAXES AND BROKERAGE AND LEGAL EXPENSES HIS REASON CONCERN OVER NEW CLINTON ADMINISTRATION TAX PROPOSALS THAT MIGHT PENALIZE THE COMPANY BUT HE STILL HOLDS THREE MILLION SHARES OF THE COMPANY'S STOCK WHICH HE PRESENTS AS EVIDENCE OF HIS CONTINUED FAITH IN THE COMPANY AFTER STARTING OUT AS A HOLLYWOOD PUBLICIST FOR PARAMOUNT PICTURES MR DAVIS ROSE THROUGH THE RANKS UNDER THE TUTELAGE OF CHARLES BLUHDORN THE FOUNDER OF WHAT WAS THEN CALLED GULF & WESTERN AFTER MR BLUHDORN DIED IN 1983 MR DAVIS AN EXECUTIVE VICE PRESIDENT LEAPFROGGED HIS ONLY RIVAL FOR THE JOB GULF & WESTERN PRESIDENT JIM JUDELSON ON WALL STREET AND IN CORPORATE AMERICA MR DAVIS CAME TO BE REGARDED AS A TOUGHMINDED STRATEGIC WIZARD WHITTLING DOWN THE UNWIELDY CONGLOMERATE MR BLUHDORN HAD BUILT SHEDDING BUSINESSES RANGING FROM MINING TO MATTRESSES IN THE END THE RENAMED PARAMOUNT COMMUNICATIONS INC WAS IN TWO PRIMARY BUSINESSES ENTERTAINMENT AND PUBLISHING WITH A HUGE CASH HOARD LEFT FROM THE SALE OF ASSETS THE 66YEAROLD MR DAVIS HAS LONG BEEN EXPECTED TO MAKE A BIG STRATEGIC ACQUISITION BUT HE HASN'T FOUND A SUITABLE CANDIDATE SINCE HE WAS THWARTED IN HIS BOLDEST MOVE A 200 PERSHARE BID FOR TIME INC THAT TIME REBUFFED TO COMPLETE ITS PLANNED MERGER WITH WARNER ABSENT THE BIG DEAL MR DAVIS HAS DONE A FEW MIDSIZE TRANSACTIONS SNAPPING UP TELEVISION STATIONS SMALL PUBLISHING COMPANIES AND A MODEST THEMEPARK OPERATION ALTHOUGH HE HASN'T MADE A BIG SPLASH MR DAVIS CAN BOAST ONE OF THE STRONGEST BALANCE SHEETS IN THE INDUSTRY AND HE ISN'T SADDLED WITH THE DEBT THAT HAS HOBBLED SUCH COMPETITORS AS NEWS CORP AND TIME WARNER BUT HE ALSO HAS NOT BEEN ABLE TO MOVE MORE AGGRESSIVELY TO MAKE PARAMOUNT A BIGGER GLOBAL POWERHOUSE THAT'S NOT TO SAY HE HASN'T EXPLOITED THE COMPANY'S PROPERTIES OVERSEAS MR DAVIS NOTES THAT PARAMOUNT HAS BEEN EXPORTING ITS PRODUCTS FOR DECADES THE REMARKABLE POPULARITY OF ENTERTAINMENT BEARING THE MADEINTHEUS LABEL HAS ALWAYS BEEN A LARGE CONTRIBUTOR TO ITS VALUE AND MYSTIQUE HE SAYS BUT THERE ARE NOW EXPONENTIAL GROWTH OPPORTUNITIES PRESENTED BY TECHNOLOGY PRIVATIZATION AND POLITICAL CHANGE HE ADDS FROM SATELLITE TRANSMISSION TO DATA COMPRESSION TECHNOLOGY HAS OPENED THE GATES OF THE GLOBAL VILLAGE MAKING IT POSSIBLE FOR US TO BRING OUR ENTERTAINMENT IN VARIOUS FORMS AND FORMATS TO AUDIENCES IN VIRTUALLY EVERY CORNER OF THE EARTH MR DAVIS SAYS PRIVATIZATION OF TELEVISION IN EUROPE FOR EXAMPLE IS OPENING NEW OPPORTUNITIES FOR JOINT VENTURES AND THE BREAKDOWN OF POLITICAL BARRIERS HAS CREATED NEW MARKETS OVERNIGHT GLOBALIZATION HAS BECOME THE LATEST CLARION CALL IN THE ENTERTAINMENT BUSINESS SAYS MR DAVIS BUT HE DOES WARN HOWEVER THAT GETTING A FOOTHOLD IN SOME OF THOSE MARKETS MAY BE AN ARDUOUS PROCESS WITH CLOSE TO 900 MOVIES IN ITS LIBRARY PARAMOUNT IS ALREADY A POTENT FORCE IN OVERSEAS MOVIES AND VIDEO DISTRIBUTION IN PARTNERSHIP WITH ANOTHER INDUSTRY GIANT MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC SUBSIDIARY PARAMOUNT ALSO DISTRIBUTES TV PROGRAMS INCLUDING STAR TREK THE NEXT GENERATION IN MORE THAN 80 MARKETS WORLDWIDE IN PARTNERSHIP WITH MCA PARAMOUNT IS THE MOST AGGRESSIVE OF THE US STUDIOS IN BUILDING MOVIE SCREENS OVERSEAS IT IS EXPANDING ITS THEATRICAL EXHIBITION BUSINESS IN THE UNITED KINGDOM GERMANY AUSTRIA AND SPAIN IN PUBLISHING PARAMOUNT SELLS ITS PRENTICE HALL AND SIMON & SCHUSTER BOOKS IN THE UK AUSTRALIA BRAZIL MEXICO SINGAPORE JAPAN AND INDIA MR DAVIS HAS BEEN DIVERTED OVER THE LAST TWO YEARS BY MANAGEMENT TURMOIL AT HIS PARAMOUNT PICTURES UNIT IN 1991 HE HIRED HOLLYWOOD PRODUCER STANLEY JAFFE AS HIS FIRST PRESIDENT AND CHIEF OPERATING OFFICER AT THE PARENT COMPANY THE MOVE SO OFFENDED PARAMOUNT PICTURES CHIEF FRANK MANCUSO THAT HE REFUSED TO REPORT TO MR JAFFE AND WAS FIRED AT A SETTLEMENT COST TO PARAMOUNT OF 10 MILLION TO 15 MILLION MR DAVIS HIRED NBC PROGRAMMING WHIZ BRANDON TARTIKOFF TO REPLACE MR MANCUSO BUT HE LEFT 18 MONTHS LATER CITING A NEED TO TAKE CARE OF A SICK CHILD AND LEAVING IN HIS WAKE SPECULATION OF DIFFERENCES WITH HIS BOSSES MR TARTIKOFF WAS IN TURN REPLACED WITH SHERRY LANSING THE LONGTIME PRODUCING PARTNER OF MR JAFFE MS LANSING HASN'T BEEN AN EXECUTIVE SINCE A STINT AT FOX IN THE 1970S MR DAVIS HAS BUSIED HIMSELF FOR MUCH OF HIS TENURE WITH RESTRUCTURING PARAMOUNT LETTING THE DIVISION HEADS OPERATE WITH RELATIVE AUTONOMY BUT NOW HE SAYS THAT HE AND MR JAFFE ARE GOING TO BE FAR MORE HANDSON PARTICULARLY AT THE STUDIO AFTER MR TARTIKOFF LEFT HE DROVE THAT POINT HOME BY NAMING MS LANSING HEAD OF THE MOTIONPICTURE OPERATIONS ONLY THE JOB OF CHAIRMAN OF THE STUDIO HAS EFFECTIVELY BEEN ELIMINATED BOTH MR DAVIS AND MR JAFFE ARE SPENDING A LOT MORE TIME ON THE PARAMOUNT LOT THESE DAYS WHILE HE KEEPS AN EYE OUT FOR POTENTIAL ACQUISITIONS MR DAVIS KNOWS PARAMOUNT COULD ITSELF BE A TARGET WITH NO CONTROLLING SHAREHOLDER TO PROTECT IT PARAMOUNT IS ONE OF THE FEW REMAINING US ENTERTAINMENT COMPANIES THAT COULD BE ACQUIRED WITH RELATIVE EASE BY A DEEPPOCKETED PLAYER WALL STREET ANALYSTS VIEW IT AS ONE OF THE ONLY REMAINING PURE PLAYS IN THE US MARKET FOR ENTERTAINMENT AND COMMUNICATIONS SOFTWARE MR DAVIS HAS ALWAYS SAID HE WOULD CONSIDER AN OFFER THAT HE FELT GAVE FULL VALUE TO THE SHAREHOLDERS BUT HE CLEARLY WANTS TO REMAIN IN CHARGE AND HE SHOWS NO SIGNS OF RETIRING MR OVITZ DOESN'T RUN A BIG PUBLIC COMPANY LIKE HIS PEERS IN THE ENTERTAINMENT INDUSTRY DO HE HEADS A RELATIVELY SMALL TALENT AGENCY WHOSE MAIN BUSINESS IS REPRESENTING SUCH DIRECTORS AS STEVEN SPIELBERG AND SUCH ACTORS AS TOM CRUISE BUT MR OVITZ'S IMPORTANCE NONETHELESS RANKS WITH THE CORPORATE TITANS OF THE LARGEST US ENTERTAINMENT CONCERNS VIRTUALLY ALL OF WHOM RELY AT ONE TIME OR ANOTHER ON HIS COUNSEL ON MATTERS THAT RANGE FROM MARKETING TO MEGAMERGERS MR OVITZ'S CLOUT IN HOLLYWOOD IS LEGENDARY CAA GOT ITS START IN 1975 WHEN MR OVITZ AND FOUR OTHERS FROM THE VENERABLE WILLIAM MORRIS AGENCY STRUCK OUT ON THEIR OWN THE COMPANY SOON BECAME KNOWN FOR ITS EXPERTISE IN PACKAGING OR PUTTING ITS DIRECTING WRITING AND ACTING CLIENTS TOGETHER AS A ONESTOP SHOPPING DEAL FOR MOVIES AND TELEVISION SHOWS THOUGH THE WORD PACKAGING RILES MR OVITZ AND HIS CAA COLLEAGUES TO THIS DAY THE CONCEPT HAS BEEN A PROFITABLE ONE PACKAGING ENABLES THE AGENCY TO COLLECT MORE COMMISSIONS ON A SINGLE FILM PROJECT OR AN OVERALL PACKAGING TELEVISION FEE IN THE LATE 1980S MR OVITZ BEGAN LOOKING TO EXPAND HIS SPHERE OF INFLUENCE BEYOND HELPING LAUNCH MOVIE AND TV PROJECTS HE SAW THE CONSOLIDATION OF THE INDUSTRY THE RAPID CHANGES IN TECHNOLOGY AND THE INCREASING GLOBALIZATION OF ENTERTAINMENT AS OPPORTUNITIES AND QUICKLY MADE HIMSELF AN INDISPENSABLE MIDDLEMAN IN THE TWO KEY GLOBAL TRANSACTIONS THAT WERE TO TRANSFORM HOLLYWOOD MR OVITZ ADVISED SONY CORP IN 1988 ON ITS 34 BILLION PURCHASE OF COLUMBIA PICTURES ENTERTAINMENT AND WAS PURSUED BY SONY WITHOUT SUCCESS TO RUN THE MOVIE OPERATIONS BUT HIS BIGGEST MOVE WAS HIS ROLE AS THE BROKER IN THE 66 BILLION PURCHASE OF MCA INC IN 1989 BY JAPANESE GIANT MATSUSHITA ELECTRIC INDUSTRIAL TODAY HE ADVISES COCACOLA CO ON ITS GLOBAL ADVERTISING AND HE RECENTLY STRUCK A DEAL TO PROMOTE SPORTING EVENTS WORLDWIDE JOINTLY WITH MARKETING GIANT NIKE INC THE FOREIGN POTENTIAL FOR OUR BUSINESS IS STAGGERING HE SAYS TODAY WE ARE TRULY DEALING WITH ONE MARKETPLACE AND IT IS CRITICAL THAT PEOPLE STOP THINKING JUST ABOUT WHAT THEY CAN DO IN THIS COUNTRY THE 46YEAROLD MR OVITZ WHOSE INTERESTS RANGE FROM COLLECTING ART TO MARTIAL ARTS HAS BEEN A PIVOTAL PLAYER IN THE NEGOTIATION OF VIRTUALLY EVERY BIG EXECUTIVE POST IN HOLLYWOOD RECENTLY HE BROKERED 20TH CENTURY FOX FILM CHIEF JOE ROTH'S MOVE TO DISNEY FOR PARAMOUNT HE NEGOTIATED BRANDON TARTIKOFF'S CONTRACT WHEN HE LEFT NBC TO HEAD THE STUDIO JUST AFTER MR OVITZ HAD HELPED SETTLE THE BITTER DISPUTE BETWEEN PARAMOUNT AND OUTGOING STUDIO BOSS FRANK MANCUSO WHEN MR TARTIKOFF LEFT 18 MONTHS LATER MR OVITZ SMOOTHED THE EXIT AS WELL MR OVITZ ALSO CONTROLLED THE NEGOTIATIONS FOR TALKSHOW HOST DAVID LETTERMAN IN HIS MUCHPUBLICIZED SWITCH FROM NBC TO CBS ALTHOUGH CAA DOESN'T PROFIT DIRECTLY FROM SUCH NEGOTIATIONS THEY EXPAND MR OVITZ'S REACH INTO THE INNER CIRCLES OF THE ENTERTAINMENT INDUSTRY NOT EVERYONE IN HOLLYWOOD LOVES MR OVITZ AND THE POWER HE WIELDS HIS RELATIONS WITH PLAYERS SUCH AS RECORD MOGUL DAVID GEFFEN PRODUCER RAY STARK AND DISNEY STUDIO CHIEF JEFFREY KATZENBERG HAVE BEEN TROUBLED OVER THE YEARS BUT MR OVITZ'S FRIENDS IN HIGH PLACES FAR OUTNUMBER HIS ENEMIES MR OVITZ HAS HAD PLENTY OF OPPORTUNITIES TO STEP INTO THE CORPORATE WORLD DIRECTLY INCLUDING THE CHANCE TO RUN COLUMBIA PICTURES FOR SONY HIS NAME HAS BEEN BANDIED ABOUT AS A POTENTIAL FUTURE CHIEF EXECUTIVE AT SUCH COMPANIES AS MCA AND TIME WARNER IF THE RIGHT DEAL CAME ALONG WITH SAY A LARGE EQUITY STAKE IN A BIG COMPANY MANY BELIEVE HE MIGHT TAKE IT BUT FOR NOW MR OVITZ PROBABLY HAS MORE FREEDOM AND POWER AS A FREE AGENT OVER THE PAST TWO YEARS MR OVITZ HAS BEEN STEEPING HIMSELF INCREASINGLY IN THE WORLDS OF CONSUMER ELECTRONICS TELECOMMUNICATIONS AND COMPUTERS BELIEVING THAT THE NEXT WAVE OF BIG BUSINESS DEALS IN HIS INDUSTRY WILL BE TECHNOLOGYDRIVEN THE SOFTWARE BUSINESS IS MOVING ON A PARALLEL COURSE WITH THE TECHNOLOGY BUSINESS AND WE'RE ALREADY IN THE FIRST PHASE OF THE MERGER OF SOFTWARE AND TECHNOLOGY SAYS MR OVITZ SKEPTICS SAY MR OVITZ'S NEW INTEREST IN THE GLOBALCOMMUNICATIONS FIELD IS TAKING HIM FAR AWAY FROM HIS BASIC BUSINESS IT IS MR OVITZ'S PERSONAL ATTENTION AND SKILL THAT WOOED AND KEPT SUCH HOLLYWOOD TALENTS AS KEVIN COSTNER STEVEN SPIELBERG AND BATMAN DIRECTOR TIM BURTON SUPPORTERS BELIEVE THAT IN THE LONG RUN MANY OF THESE SUPERSTARS CAN ONLY BENEFIT AS MR OVITZ'S INFLUENCE EXTENDS INTO THE NEXT GENERATION OF ENTERTAINMENT TECHNOLOGY I WANT TO POSITION OUR CLIENTS AND OUR COMPANY GLOBALLY FOR THE FUTURE MR OVITZ SAYS AND THE FUTURE OF OUR BUSINESS IS NOT JUST WHO CONTROLS THE TECHNOLOGICAL HIGHWAYS BUT THE SOFTWARE THAT RUNS ON THOSE HIGHWAYS THE 49YEAR OLD MR SCHULHOF STARTED OUT FAR FROM THE GLITZ OF SHOW BUSINESS AS A PHYSICIST AT THE BROOKHAVEN NATIONAL LABS IN THE 1970S AFTER JOINING SONY IN 1974 HE HELD A SERIES OF TECHNICAL JOBS AND HE WAS INSTRUMENTAL IN INTRODUCING DIGITAL AUDIO TECHNOLOGY IN THE US AND SPEARHEADING THE DEVELOPMENT AND MARKETING OF COMPACT DISKS BY THE MID1980S HE WAS TAPPED BY SONY'S TOP BRASS IN JAPAN TO LEAD A SEARCH FOR ENTERTAINMENT ACQUISITIONS THAT WOULD MOVE SONY FROM ITS HARDWARE BUSINESS INTO THE ENTERTAINMENT SOFTWARE THAT RAN ON THOSE PRODUCTS MUSIC AND FILMED ENTERTAINMENT MR SCHULHOF'S FIRST BIG PRIZE WAS CBS RECORDS WHICH THE COMPANY ACQUIRED IN 1988 A YEAR LATER SONY DROPPED 34 BILLION ON THE PURCHASE OF COLUMBIA PICTURES ENTERTAINMENT INC WHICH OWNS TWO MOVIE STUDIOS TV PRODUCTION AND A THEATER CHAIN MR SCHULHOF HAS ALSO OVERSEEN THE COMPANY'S PUSH INTO ELECTRONIC PUBLISHING AND OTHER SOCALLED MULTIMEDIA BUSINESSES SINCE ACQUIRING COLUMBIA RENAMED SONY PICTURES ENTERTAINMENT SONY HAS SPENT MORE THAN 1 BILLION TO BOLSTER THE ENTERTAINMENT OPERATIONS AND INCREASE PRODUCTION THE COLUMBIA AND TRISTAR STUDIOS HAVE HAD SOME BIG BOXOFFICE SUCCESSES LATELY AND THE COMPANY HAS BEGUN AN INTERNAL COSTCONTAINMENT PROGRAM TO HALT THE WORST EXCESSES AT THE STUDIO BUT IT REMAINS TO BE SEEN WHETHER THE ENTERTAINMENT COMPANY WILL EVER PRODUCE RETURNS THAT COULD JUSTIFY SONY'S HEFTY PURCHASE PRICE AND ITS ONGOING INVESTMENT REQUIREMENTS PLAGUING SONY IS THE GLOBAL DOWNTURN IN ITS BASIC BUSINESS LAST NOVEMBER THE COMPANY REPORTED A 73 DECLINE IN ITS CONSOLIDATED PRETAX EARNINGS FOR ITS SECOND QUARTER CUT IN HALF ITS EARNINGS FORECAST FOR THE FULL YEAR AND SAID IT EXPECTS A LARGE OPERATING LOSS FOR THE SECOND HALF ALTHOUGH SONY'S ENTERTAINMENT OPERATIONS SHOWED OVERALL SALES GROWTH OF 13 IT WASN'T ENOUGH TO MAKE UP FOR THE SLUMP IN THE COMPANY'S ELECTRONICS BUSINESS ARE THERE ANY SECOND THOUGHTS ABOUT THE EXPENSIVE DIVERSIFICATION INTO HOLLYWOOD IF ANYTHING THE REVERSE IS TRUE SAYS MR SCHULHOF EVERYONE IN SONY UNDERSTANDS THE PROBLEMS OF THE ELECTRONICS BUSINESS DO NOT COME FROM THE ACQUISITION OF THE SOFTWARE BUSINESS AND IF NOT FOR THE SOFTWARE BUSINESS TOTAL EARNINGS WOULD BE FAR WORSE FOR THE NEXT WAVE OF TECHNOLOGY AND ENTERTAINMENT SOFTWARE MR SCHULHOF AND HIS SONY BOSSES ARE PINNING THEIR HOPES ON THE INTRODUCTION OF THE MINIDISC WHICH FEATURES RECORDABLE 25INCH COMPACT DISKS THAT THE COMPANY HOPES WILL EVENTUALLY SUPPLANT CASSETTE TAPES BUT THE MARKET IS FAR FROM ASSURED THE MINIDISC FACES STIFF COMPETITION FROM THE DIGITAL COMPACT CASSETTE PLAYER DEVELOPED BY PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND MATSUSHITA ELECTRIC INDUSTRIAL AS FOR FINDING THE SYNERGIES BETWEEN THE HARDWARE SIDE AND THE ENTERTAINMENT BUSINESS MR SCHULHOF ACKNOWLEDGES SYNERGY HAS COME FASTER AND BETTER BETWEEN THE MUSIC GROUP THE FILMED ENTERTAINMENT OPERATIONS AND THE NEW ELECTRONICPUBLISHING BUSINESSES IN CONSUMER ELECTRONICS WHICH IS STILL RUN SEPARATELY FROM THE SOCALLED SOFTWARE OPERATIONS FINDING SYNERGIES WITH THE ENTERTAINMENT OPERATIONS HAS BEEN HARDER AND TAKEN LONGER THAN I WANTED IT TO HE CONCEDES ALTHOUGH IT IS UNCLEAR HOW MUCH DIRECT POWER MR SCHULHOF WIELDS AT SONY HE CLEARLY HAS PLENTY OF INFLUENCE THOUGH NOT A MEMBER OF SONY'S FIVEMAN MANAGEMENT COMMITTEE HE IS THE ONLY NONJAPANESE SONY EXECUTIVE ON THE COMPANY'S TOKYO BOARD OF DIRECTORS LAST YEAR SONY CREATED A NEW USBASED SONY SOFTWARE CORP AS AN UMBRELLA ORGANIZATION FOR MUSIC FILMED ENTERTAINMENT AND ELECTRONIC PUBLISHING AND IT NAMED MR SCHULHOF ITS PRESIDENT HE IS EXPECTED TO EVENTUALLY OVERSEE THE HARDWARE BUSINESS IN THE US AS WELL HARDLY A FIXTURE IN THE GLAMOUR SCENE IN HIS PREVIOUS INCARNATION AS A TECHIE MR SCHULHOF IS SUDDENLY A FREQUENT NAME ON THE SHOWBUSINESS CIRCUIT ATTENDING THE GRAMMY AWARDS WITH SONY SUPERSTAR MARIAH CAREY HAVING TONY BENNETT SING AT HIS BIRTHDAY PARTY IN TRENDY NEW YORK RESTAURANT PLANET HOLLYWOOD ENTERTAINING LAVISHLY AT HIS EAST HAMPTON NY ESTATE AND PICKING UP THE TAB FOR SONY STARS WHO ENTERTAINED AT THE INAUGURATION FESTIVITIES IN WASHINGTON LAST JANUARY AN AVID AND ACCOMPLISHED PILOT MR SCHULHOF IS A FREQUENT FLYER ON SONY'S FIVEPLANE US FLEET SHUTTLING HIMSELF FROM HIS NEW YORK BASE TO SONY PICTURES' STUDIOS IN HOLLYWOOD AND COMPACTDISK FACTORIES IN SOUTH AMERICA BUT THE GLOBETROTTING EXECUTIVE IS STRETCHED THIN AND LIKELY TO BECOME MORE SO AFTER CONTROVERSIAL CBS RECORDS CHAIRMAN WALTER YETNIKOFF WAS OUSTED FROM THE COMPANY TWO YEARS AGO MR SCHULHOF WAS ALSO NAMED CHAIRMAN OF THE RENAMED SONY MUSIC WITH THE NOTION THAT HE WOULD FIND A SUCCESSOR HE HASN'T NAMED ONE YET AND NOT EVERYTHING HAS GONE SO SMOOTHLY FOR MR SCHULHOF HE HELPED TO RECRUIT PRODUCERS PETER GUBER AND JON PETERS TO RUN THE MOVIE COMPANY LEADING TO A BIG LEGAL BATTLE WITH TIME WARNER INC WHERE THE TWO HAD A LONGTERM PRODUCING CONTRACT ULTIMATELY SONY SETTLED THE SUIT FOR 300 MILLION OR 600 MILLION DEPENDING ON WHETHER ONE BUYS SONY'S OR WARNER'S ESTIMATE AND NOT LONG AFTERWARDS SONY PAID MR PETERS A HEFTY SUM TO GET HIM OUT OF COLUMBIA WHILE KEEPING MR GUBER MR SCHULHOF SAYS HIS MISSION NOW IS TO MOVE SONY'S ENTERTAINMENT OPERATIONS BEYOND SIMPLY EXPORTING MOVIES TV SHOWS AND RECORDS LOCAL SONY PICTURES OFFICES IN VARIOUS COUNTRIES FUNCTION PURELY AS DISTRIBUTION OUTLETS FOR USMADE PRODUCTS OUR MANAGERS OVERSEAS SHOULD BE LOOKING AT LOCAL OPPORTUNITIES TO PRODUCE PROGRAMMING WITH LOCAL CONTENT HE SAYS MR SCHULHOF ALSO CONTENDS THAT THE REAL INTERNATIONALIZATION OF THE FILM BUSINESS IS GOING TO COME BECAUSE COMPANIES LIKE SONY AND MATSUSHITA ARE INVOLVED NOW AND WILL PROMOTE A MORE ACTIVE ROLE IN FOREIGN TERRITORIES THAN JUST THE BUSINESS AS USUAL OF EXPORTING USMADE PRODUCT IN MUSIC HE NOTES SONY IS ALREADY LOOKING AT WAYS TO DISCOVER LOCAL REPERTOIRE AND MARKET IT IN OTHER COUNTRIES SUCH AS SELLING SPANISH SPEAKING ARTISTS IN CHILE MEXICO AND SPAIN THE PRESSURE IN THE COMING DECADE HE SAYS WILL FORCE COMPANIES TO ESTABLISH FULLY INTEGRATED OPERATIONS IN ALL THE COUNTRIES AROUND THE WORLD MS LANDRO IS THE WALL STREET JOURNAL'S MARKETING AND MEDIA EDITOR 9303260179 930326 MARKETING & MEDIA ADVERTISING SEEKING TO AGE GRACEFULLY FOX AIMS NEW SHOWS AT OLDER VIEWERS BY ELIZABETH JENSEN WHAT'S MELANIE MAYRON BEST KNOWN FOR HER ROLE AS MELISSA THE EMOTIONALLY FRAGILE PHOTOGRAPHER ON ABC'S THIRTYSOMETHING DOING IN AN UPCOMING EPISODE OF A NEW FOX BROADCASTING SERIES WITH ANY LUCK AND A GOOD REVIEW OR TWO HELPING THE YOUTHFUL NETWORK AGE GRACEFULLY AS IT ENTERS ITS SEVENTH FULL SEASON IN FACT MS MAYRON IS JUST ONE OF A NUMBER OF GUEST STARS OF BABYBOOMER AGE IN THE NEW SERIES TRIBECA WHICH MADE ITS DEBUT TUESDAY NIGHT AS PART OF FOX'S PLANNED ASSAULT ON THE 35TO49YEAROLD DEMOGRAPHIC GROUP YES FOX THE NETWORK OF BART SIMPSON AND TEEN SEX IN BEVERLY HILLS IS ACTIVELY COURTING VIEWERS WHO ARE JUST A YEAR SHY OF 50 COME FALL BRENDA AND HER BEVERLY HILLS 90210 BUDDIES MAY STILL GRAPPLE WITH THE TRAUMAS OF TEEN LIFE BUT THERE WILL ALSO BE MANY MORE PLOT LINES ABOUT HOW PARENTS COPE WITH THEIR KIDS' CRISES FOX A UNIT OF NEWS CORP ADMITS IT WAS TOO NARROWLY TARGETED THIS SEASON TO THE POINT OF BECOMING A NICHE WITHIN A NICHE SAYS SANDY GRUSHOW PRESIDENT OF FOX ENTERTAINMENT VIEWERS HAD TO LOOK CLOSELY AT THE CLOTHES AND SETTINGS TO DISTINGUISH BETWEEN THE YOUNG ADULTS ON 90210 MELROSE PLACE CLASS OF '96 AND THE HEIGHTS AS A RESULT EVEN THE NO 1 SONG IN THE COUNTRY COULDN'T SAVE THE HEIGHTS WHICH WAS ABOUT A ROCK BAND FROM THE RATINGS BASEMENT BEFORE IT WAS CANCELED IN NOVEMBER IT RANKED 101 OUT OF 106 SHOWS FOR A NETWORK THAT BUILT ITSELF BY DEVELOPING A STRONG IDENTITY WITH THE YOUNG SET HOWEVER AGING GRACEFULLY SEEMS AS RISKY AS IT IS BOLD ONE DANGER IS YOU LOSE YOUR FOCUS SAYS BETSY FRANK SENIOR VICE PRESIDENT AT SAATCHI & SAATCHI A FULL 66 OF FOX'S PRIMETIME AUDIENCE IS UNDER 35 COMPARED WITH 45 FOR ABC THE YOUNGEST OF THE OTHER THREE NETWORKS CBS WHOSE AUDIENCE PROFILE IS THE OLDEST FINDS JUST 30 OF ITS AUDIENCE IN THE UNDER35 AGE GROUP NBC GETS 42 THAT SUCCESS IN THE YOUTH DEMOGRAPHIC GROUP HOWEVER IS PART OF THE REASON FOX IS LOOKING TO BROADEN ITS HORIZONS THE NETWORK TARGETED YOUNG VIEWERS EARLY ON BECAUSE THEY WERE MOST APT TO SAMPLE THE FOURTH NETWORK QUICKLY BUT THAT WILLINGNESS TO EXPERIMENT ALSO MEANT THE CURRENT CORE AUDIENCE WAS POTENTIALLY FICKLE LEADING FOX TO SEEK THE RELATIVE STABILITY OF OLDER VIEWERS IN ADDITION FOX HAS NO CHOICE BUT TO EXPAND THE AUDIENCE IF IT WANTS TO KEEP ADVERTISING REVENUES GROWING SAYS JON MANDEL SENIOR VICE PRESIDENT AT GREY ADVERTISING CURRENTLY THE NETWORK IS EXCLUDED FROM A GOOD CHUNK OF THE AD DOLLARS OF SUCH KEY GROUPS AS DOMESTIC AUTO MAKERS AND PACKAGED GOODS ADVERTISERS THAT ABC CBS AND NBC WITH THEIR BROADER AUDIENCES ARE ABLE TO ATTRACT FOX DOES BUSINESS WITH ALL THE DOMESTIC AUTO MAKERS BUT NOT ALL DIVISIONS AT GENERAL MOTORS CORP FOR EXAMPLE WE DO WELL WITH CHEVY FOR FIRSTTIME YOUNGER BUYERS BUT WE'D ALSO LIKE TO DO SOME BUSINESS WITH BUICK SAYS JON NESVIG FOX BROADCASTING'S SENIOR VICE PRESIDENT OF SALES EXECUTIVES INSIST THE NETWORK ISN'T BACKING OFF THE 12TO34 YEAR OLDS THAT NOW FORM THE CORE OF ITS VIEWERSHIP AND WHERE THE NETWORK NOW RANKS FIRST IN THE NIELSEN RATINGS ITS PLAN TO EXPAND ITS TARGET AUDIENCE TO THE 18TO49 GROUP THAT ADVERTISERS COVET MOST IS EVOLUTION NOT REVOLUTION THEY SAY THE TYPICAL FOX VIEWER IS NOW 27 AND MALE FOX WANTS TO RAISE THAT MEDIAN AGE TO ABOUT 31 OR 32 THAT WILL COME BY TARGETING VIEWERS 35 TO 49 YEARS OLD WITH WHOM FOX NOW RANKS LAST AMONG THE FOUR NETWORKS BUT AS NBC RECENTLY LEARNED FOX COULD END UP ALIENATING ITS CORE AUDIENCE BY ATTEMPTING A DEMOGRAPHIC SHIFT THIS SEASON NBC A UNIT OF GENERAL ELECTRIC LOPPED OFF SHOWS THAT APPEALED TO THE 50PLUS AUDIENCE IN FAVOR OF PROGRAMS STRICTLY TARGETED TO THE 18TO49 GROUP OLDER VIEWERS FELT PUSHED AWAY YOUNGER VIEWERS WERE'T INTERESTED IN THE NEW SHOWS AND RATINGS PLUNGED NBC EXECUTIVES NOW ADMIT THAT THEY TRIED TO GO TOO YOUNG TOO FAST AND ARE AIMING WIDER FOR THE FALL FOX EXECUTIVES INSIST THE NETWORK CAN BROADEN ITS HORIZONS BUT STILL KEEP ITS DISTINCTIVE EDGE NOT ALL 35YEAROLDS ARE THE SAME SAYS GILES LUNDBERG FOX VICE PRESIDENT OF RESEARCH AND MARKETING THE OLDERSKEWING PROGRAMMING HE SAYS WILL STILL HAVE A DISTINCTIVE FOX FEEL TO IT NEXT WEEK'S EPISODE OF TRIBECA FOR EXAMPLE IS LACED WITH A READING OF BEAT POETRY NOT YOUR TYPICAL NETWORK FARE ON THE FOX SLATE FOR FALL A NEW LATENIGHT PROGRAM HOSTED BY COMEDIAN CHEVY CHASE IS EXPECTED TO BRING IN THE OLDER VIEWERS AS WILL THE MONDAY MOVIE NIGHT THE SLATE OF 37 SERIES IN DEVELOPMENT FOR POSSIBLE INCLUSION ON THE FALL LINEUP ALSO HAS SEVERAL SHOWS AIMED AT THE OLDER VIEWER FEATURING SUCH CHARACTERS AS A NEW YORK CITY POLICE COMMISSIONER PLAYED BY RON SILVER AND A PSYCHIATRIST PLAYED BY PETER SCOLARI OF NEWHART WHO MOVES HIS FAMILY BACK TO THE MIDWEST THERE'S ALSO LOCALS A SITCOM STARRING JOHN RATZENBERGER CLIFF CLAVIN ON CHEERS AS A SMALLTOWN BARBER MR GRUSHOW CALLS IT A MAYBERRY RFD' FOR THE 90S A VARIETY SHOW HOSTED BY MARTIN TOWNSEND A SITCOM STARRING COMEDIAN SINBAD AS A BACHELOR WHO ADOPTS TWO ORPHANS AND EVEN A COMEDY STARRING GEORGE CARLIN WHO MADE HIS MARK BACK IN THE 1970S WITH A ROUTINE ABOUT SEVEN DIRTY WORDS THAT COULDN'T BE SAID ON TELEVISION THEN THERE'S A THREEGENERATION SITCOM DADDY DEAREST STARRING RICHARD LEWIS AS A DIVORCED FATHER WHO LIVES WITH HIS OWN FATHER PLAYED BY COMEDIAN DON RICKLES THAT ONE MIGHT EVEN DRAW A DREADED 50PLUS VIEWER OR TWO ROCKET J SQUIRREL AND HIS BIGANTLERED SIDEKICK BULLWINKLE THE MOOSE WILL APPEAR IN A NEW AD CAMPAIGN FROM PEPSICO'S TACO BELL FASTFOOD CHAIN BEGINNING MONDAY IN THE 30SECOND SPOT THE DUO'S ARCHENEMIES BORIS AND NATASHA TRY TO ENTICE THEM TO CONSUME A HAMBURGER THAT HAS BEEN RIGGED WITH STICKS OF DYNAMITE RESISTING THE MEAT PATTY DUBBED MICBORIS THE FEISTY SQUIRREL WITH GOGGLES COMMONLY KNOWN AS ROCKY PROUDLY PROCLAIMS BURGERS ARE BORING AND TROTS OFF TO TACO BELL WITH BULLWINKLE BEFORE THE BURGER GOES BOOM THERE ARE THREE VERSIONS OF THE SPOT EACH EMPHASIZING A DIFFERENT MENU FEATURE THE AD IS PRODUCED BY THE SAN FRANCISCO OFFICE OF FOOTE CONE & BELDING COMMUNICATIONS INC AND IS THE LATEST SALVO IN THE CONTINUOUSLY COMPETITIVE FASTFOOD CHAIN WARS WITH OTHER COMBATANTS MCDONDALD'S BURGER KING AND WENDY'S OSCAR SPOT PRUDENTIAL INSURANCE CO OF AMERICA IS SCHEDULED TO LAUNCH A TELEVISION AD CAMPAIGN ENCOMPASSING THREE HALFMINUTE SPOTS DURING MONDAY'S ACADEMY AWARDS TELECAST ON CAPITAL CITIES/ABC INC'S ABC NETWORK THE COMMERCIALS CREATED BY INTERPUBLIC GROUP'S LOWE & PARTNERS END WITH THE LINE PEACE OF MIND IT COMES WITH EVERY PIECE OF THE ROCK THEY FEATURE SPLITSCREEN IMAGES TO STRESS THE COMPANY'S CONSUMER PRODUCTS AND SERVICES ACCOUNT JOEY REIMAN AGENCY ATLANTA WAS AWARDED THE 4 MILLION SOUTHEAST REGION ACCOUNT OF DOMINO'S PIZZA PERCENTAGE OF VIEWERS AGE TWO AND OLDER FOR EACH NETWORK DURING PRIMETIME HOURS FOR THE 199293 SEASONTODATE THROUGH MARCH 14 9303260178 930315 LETTERS TO THE EDITOR WACO SHOOTOUT EVOKES MEMORY OF WARSAW '43 ON FEB 27 BLACKUNIFORMED MEN OF THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS WEARING COAL SCUTTLE HELMETS AND CARRYING GERMANMADE MACHINE PISTOLS ATTACKED THE BRANCH DAVIDIAN COMPOUND IN WACO TEXAS FIFTY YEARS EARLIER IN JANUARY 1943 BLACKUNIFORMED SS MEN WEARING COAL SCUTTLE HELMETS AND CARRYING GERMANMADE MACHINE PISTOLS ATTACKED THE JEWISH COMPOUND IN WARSAW POLAND THE BATF MEN WERE SEARCHING FOR ILLEGAL WEAPONS REPORTED BY A PAID INFORMANT TO BE IN THE BRANCH DAVIDIAN COMPOUND THE SS MEN WERE SEARCHING FOR ILLEGAL WEAPONS REPORTED BY A PAID INFORMANT TO BE IN THE WARSAW GHETTO REPORTS FROM TEXAS INDICATE THE BRANCH DAVIDIANS KEPT TO THEMSELVES AND HARMED NO ONE OUTSIDE THEIR COMPOUND PRIOR TO THE BATF ASSAULT HISTORY TELLS US THE JEWS KEPT TO THEMSELVES AND HARMED NO ONE OUTSIDE THE WARSAW GHETTO PRIOR TO THE SS ASSAULT PRACTICE CONTEMPTIBLE SEXUAL RITUALS INVOLVING YOUNG CHILDREN SO THEY ARE AN EVIL RELIGIOUS CULT NAZI NEWS MEDIA TOLD THE GERMAN POPULACE THAT THE JEWS PRACTICED CONTEMPTIBLE SEXUAL RITUALS INVOLVING CHILDREN SO THEY WERE AN EVIL RELIGION THE BATF INVITED THE US NEWS MEDIA TO DOCUMENT THE BATF ASSAULT TO SHOW THE AMERICAN PUBLIC HOW DANGEROUS THE BRANCH DAVIDIANS ARE THE SS HAD PROPAGANDISTS DOCUMENT ITS ASSAULT TO SHOW THE GERMAN PUBLIC HOW DANGEROUS THE JEWS WERE FOUR BATF MEN WERE KILLED AND 16 WOUNDED IN THE INITIAL ASSAULT ON THE BRANCH DAVIDIAN COMPOUND ELEVEN SS MEN WERE KILLED AND AN UNRECORDED NUMBER WOUNDED IN THE INITIAL ASSAULT ON THE WARSAW GHETTO AFTER THE INITIAL ASSAULT THE BATF MEN MAGNANIMOUSLY ARRANGED A TRUCE SO CHILDREN COULD BE EVACUATED FROM THE BRANCH DAVIDIAN COMPOUND AND THEY COULD TEND TO THEIR CASUALTIES AFTER THEIR INITIAL ASSAULT THE SS MEN MAGNANIMOUSLY ARRANGED A TRUCE SO CHILDREN COULD BE EVACUATED FROM THE WARSAW GHETTO COMPOUND AND THEY COULD TEND TO THEIR CASUALTIES THE BATF CALLED UP MILITARY UNITS WITH ARMORED VEHICLES TO FINISH OFF THE BRANCH DAVIDIAN COMPOUND AFTER ENCOUNTERING FIERCE RESISTANCE AGAINST THE INITIAL ASSAULT THE SS CALLED UP MILITARY UNITS WITH ARMORED VEHICLES TO FINISH OFF THE WARSAW GHETTO AFTER ENCOUNTERING FIERCE RESISTANCE AGAINST THE INITIAL ASSAULT FIFTY YEARS HAVE PASSED BUT LITTLE HAS CHANGED SEE RELATED LETTERS LETTERS TO THE EDITOR WARSAW JEWS' VALIANT MEMORY PROFANED WSJ MARCH 25 1993 9303150128 9303260176 930326 BMW'S CAR SALES DECLINED BY 57 DURING 1ST QUARTER BY JOHN SCHMID SPECIAL TO THE WALL STREET JOURNAL MUNICH BAYERISCHE MOTOREN WERKE AG SAID FIRSTQUARTER CAR SALES FELL 57 BUT OFFICIALS PREDICTED THE AUTO MAKER WILL FARE BETTER THAN ITS COMPETITORS DURING THE CURRENT RECESSION IN GERMANY IN HIS FIRST PUBLIC APPEARANCE SINCE BEING NAMED THE COMPANY'S NEXT CHAIRMAN BERND PISCHETSRIEDER ASSERTED THAT BMW MOST DEFINITELY WON'T TINKER WITH EITHER ITS TONY IMAGE OR THE TYPE OF LIMITEDPRODUCTION LUXURY CARS IT MANUFACTURES THAT SETS BMW APART FROM ITS ARCHRIVAL MERCEDESBENZ AG WHICH EARLIER THIS YEAR ANNOUNCED PLANS TO EXPAND BEYOND ITS TRADITIONAL LINE OF LUXURY SEDANS IN AN EFFORT TO LURE NEW AND IN SOME CASES LESSAFFLUENT DRIVERS CHAIRMAN EBERHARD VON KUENHEIM WHO RETIRES IN MAY DISTANCED BMW FROM MERCEDES IN ANOTHER WAY YESTERDAY SAYING THAT UNLIKE MERCEDES'S PARENT COMPANY DAIMLERBENZ AG BMW WON'T TRY TO LIST ITS SHARES ON THE NEW YORK STOCK EXCHANGE DAIMLER IS EXPECTED TO ANNOUNCE NEXT WEEK THAT ITS SHARES WILL BEGIN TRADING THIS YEAR ON THE BIG BOARD WE'RE GOING OUR OWN WAY SAID MR VON KUENHEIM WHO HAS OFTEN PRIDED HIMSELF ON THE DIFFERENT PHILOSOPHIES EMPLOYED BY MUNICH'S BMW AND STUTTGART'S MERCEDES HE SAID THAT A SHARE LISTING IN THE US ISN'T WORTH THE COST AND EFFORT BMW OFFICIALS SPOKE AT A NEWS BRIEFING TO RELEASE THE GROUP'S PRELIMINARY FIRSTQUARTER SALES REPORT WHICH SHOWED A WORLDWIDE DROP IN CAR SALES OF 8060 CARS TO 133000 VEHICLES FROM A YEAR EARLIER THE DECLINE WAS LED BY A 15 DROP IN THE RECESSIONBOUND HOME GERMAN MARKET TO JUST OVER 50000 CARS SAID ROBERT BUECHELHOFER MANAGING BOARD MEMBER RESPONSIBLE FOR WORLDWIDE SALES AND MARKETING GROUP REVENUE DROPPED 500 MILLION MARKS 3053 MILLION OR 64 TO 73 BILLION MARKS 446 BILLION LED BY A 83 DECLINE IN DOMESTIC SALES TO 33 BILLION MARKS AND ACCOMPANIED BY A 48 DROP IN FOREIGN SALES TO FOUR BILLION MARKS PRODUCTION AT BMW'S FACTORIES EASED 7700 CARS OR 49 TO 150500 THAT WAS MUCH LOWER THAN THE 25 PLUNGE FOR GERMAN AUTO INDUSTRY AS A WHOLE IN THE FIRST QUARTER MR VON KUENHEIM SAID THE 45YEAROLD MR PISCHETSRIEDER SAID NOT TO EXPECT MAJOR CHANGES AFTER HE TAKES THE WHEEL AS BMW CHAIRMAN BMW HAS A STRONG CORPORATE CULTURE THAT WAS FORMED BY MR VON KUENHEIM HE SAID I DON'T THINK I'M VERY DIFFERENT FROM THAT 9303260175 930326 FOR SOME GIRLS CHEERLEADING OFFERS A LEG UP IN LIFE CONTESTS AND SCHOLARSHIPS HELP SOME FLEE RURAL HARDSHIP RAISING FUNDS TO COMPETE BY CLARE ANSBERRY STAFF REPORTER OF THE WALL STREET JOURNAL AS A CHILD TAMMY JO COTTON DREAMED OF ESCAPING POVERTY THE HILLS OF NORTHEASTERN KENTUCKY AND SOUTH SHORE A LITTLE TOWN OF 2000 SO IN THE FIFTH GRADE WITH THAT IN MIND SHE TOOK UP CHEERLEADING FOR THE MCKELL ELEMENTARY SCHOOL BULLDOGS I KNEW IF I MADE THE SQUAD I COULD GET OUT SHE SAYS IT TOOK A WHILE BUT THE STRATEGY WORKED IN HER FRESHMAN YEAR AT GREENUP COUNTY HIGH SCHOOL SHE TOOK HER FIRST TRIP OUT OF TOWN TO A CHEERLEADING CAMP IN LEXINGTON A YEAR LATER SHE FLEW TO FLORIDA FOR A NATIONAL COMPETITION AND GOT TO STAY IN A HOTEL TAMMY JO WHOSE FATHER WAS A WELDER AND HAD AN EIGHTHGRADE EDUCATION ULTIMATELY CAUGHT THE EYE OF THE UNIVERSITY OF KENTUCKY CHEERLEADING ADVISER WHO HAD SOME MONEY TO HELP OUT PROMISING BUT NEEDY CHEERLEADERS WITH A FEW HUNDRED DOLLARS FROM THE UNIVERSITY AND BORROWED FUNDS TAMMY JO WAS IN COLLEGE TRAVELING WITH THE WILDCAT FOOTBALL TEAM TO PLACES LIKE NEW ORLEANS THERE SHE LEARNED THAT RED WINE GOES WITH MEAT SHE TRIED SCALLOPS AND SAW A REVOLVING DOOR I DIDN'T KNOW HOW TO USE IT SAYS MS COTTON WHO IS NOW 30 WORKS IN COMPUTER SERVICING IN CHICAGO HAS REALESTATE INVESTMENTS AND COLLECTS WINE FOR SOME YOUNG GIRLS WHO SPENT THEIR SCHOOL YEARS ON THE SIDELINES ROOTING FOR BOYS CHEERLEADING HAS BECOME A ONEWAY TICKET FROM SMALL TOWNS TO THE BIG TIME AND TO A DEGREE OF SOPHISTICATION TODAY ALL 16 UNIVERSITY OF KENTUCKY CHEERLEADERS GET SCHOLARSHIPS AND NEARLY EVERY SOUTHERN UNIVERSITY COURTS THE BEST HIGHSCHOOL CHEERLEADERS IT'S FINALLY PAYING OFF SAYS T LYNN WILLIAMSON CHEERLEADING ADVISER FOR THE UNIVERSITY OF KENTUCKY IN GREENUP COUNTY WHERE TAMMY JO COTTON WENT TO HIGH SCHOOL THE LACKLUSTER FOOTBALL TEAM WHICH LAST YEAR LOST ALL 11 OF ITS GAMES HOLDS PEP RALLIES FOR THE CHEERLEADERS WHO HAVE WON SIX NATIONAL CHAMPIONSHIPS SINCE 1981 AND BEEN TO TOKYO NO LONGER DISMISSED AS A POPULARITY CONTEST FOR SEXY AIRHEADS WHOSE TALENT WAS MEASURED IN DECIBELS AND SPUNK CHEERLEADING HAS BECOME A RIGOROUS ACTIVITY HALF GYMNASTICS AND HALF DANCE THAT REQUIRES LONG HOURS OF HARD WORK IT IS ALSO A MULTIMILLION DOLLAR BUSINESS WITH BIG COMPANIES FORMED BY FORMER CHEERLEADERS SELLING UNIFORMS HOLDING PRIVATE CAMPS AND SPONSORING NATIONAL CHAMPIONSHIPS TELEVISED BY ESPN ONE OUTFIT VARSITY SPIRIT CORP EVEN HAS AN AFFILIATE IN JAPAN PARENTS LIKE SO MANY STAGE MOTHERS ARE ENROLLING THREEYEAROLDS IN PRIVATE CHEERLEADING CLASSES SOME SCHOOLS SUCH AS HOUSTON MIDDLE SCHOOL IN GERMANTOWN TENN HAVE CREATED TWO SQUADS ONE TO CHEER AT GAMES AND ONE TO COMPETE FOR NATIONAL TITLES IF YOU'RE FRIVOLOUS AND JUST WANT TO WEAR THE UNIFORMS YOU TRY OUT TO CHEER FOR THE FOOTBALL TEAM EXPLAINS SUZANNE JOHNSON A HOUSTON EIGHTH GRADER WHO BEGAN CHEERING FOUR YEARS AGO FOR A PEEWEE FOOTBALL SQUAD BUT HAS SINCE GRADUATED TO PURE COMPETITION AND TAKES PRIVATE GYMNASTICS LESSONS TO HONE HER SKILLS OF COURSE THERE IS A PRICE TO BE PAID FOR OVERWEENING AMBITION WHO CAN FORGET THE TEXAS MOTHER WHO WAS CHARGED WITH TRYING TO HIRE A HIT MAN TO KILL THE MOTHER OF HER DAUGHTER'S CHEERLEADING RIVAL THEN THERE IS THE CASE OF A KENTUCKY FATHER BENNIE LEE DOAN MR DOAN WHO EARNS 180 A WEEK BAGGING GROCERIES AT AN IGA SUPERMARKET HAD SPENT HUNDREDS OF DOLLARS TO SEND HIS 14YEAROLD DAUGHTER JENNIE TO CHEERLEADING CAMP AND TO BUY HER SHOES AND OUTFITS BUT LAST FALL WHEN SHE NEEDED 250 TO ATTEND A NATIONAL COMPETITION IN NASHVILLE TENN AND FAILED TO SELL HER QUOTA OF 50 PIZZAS TO COVER THE COST HE COULDN'T STAND IT ANY LONGER HOPING TO GET HER OFF THE TEAM HE WROTE ANONYMOUS LETTERS TO SCHOOL OFFICIALS DEMANDING THAT SHE BE KICKED OFF OR ELSE HE SIGNED THE LETTERS TRIGGER HAPPY WITHIN HOURS NEWS OF THE THREATS SPREAD AND RESIDENTS OF RURAL CYNTHIANA KY HELD A TOWN MEETING THEY DEMANDED THAT LAW ENFORCEMENT OFFICIALS PROVIDE ARMED GUARDS WITH SHOOTTOKILL ORDERS AT THE HIGH SCHOOL THAT WEEK'S HOMECOMING DANCE AND THE CROWNING OF A KING AND QUEEN WERE CANCELED FINALLY MR DOAN CONFESSED AND IN DECEMBER WAS SENTENCED TO FIVE YEARS' PROBATION FOR SENDING THREATENING LETTERS THROUGH THE MAIL CHEERLEADING WAS COSTING HIM A LOT OF MONEY HE DIDN'T HAVE SAYS FEDERAL BUREAU OF INVESTIGATION AGENT JAMES INSCO JENNIE DID GET TO GO TO THE NASHVILLE COMPETITION AFTER ALL THANKS TO THE GENEROSITY OF A KENTUCKY MAN WHO HEARD ABOUT HER PLIGHT AND SENT HER THE 250 MORE TYPICAL HOWEVER IS THE CASE OF WENDY ADAMS NOW 27 OF PELL CITY ALA A TALENTED HIGHSCHOOL CHEERLEADER MS ADAMS DROPPED OUT OF COLLEGE AFTER HER FATHER DIED BECAUSE SHE COULD NO LONGER AFFORD TO ATTEND SHE WENT TO WORK IN TELEMARKETING FOR VARSITY SPIRIT AND WHILE THERE HELPED TEACH CHEERLEADING CLINICS DOING THAT SHE MET MR WILLIAMSON WHO OFFERED HER A SCHOLARSHIP TO KENTUCKY TODAY SHE IS STUDYING GEOGRAPHY AND HAS TRAVELED FROM COSTA RICA TO LONDON AND JAPAN I DON'T KNOW WHAT I WOULD HAVE DONE WITHOUT IT SHE SAYS NOR DOES DAWN DUNCAN WALTERS WHO OWES HER LIVELIHOOD TO CHEERLEADING AND TO A MOTHER WITH THE FORESIGHT TO STEER HER AWAY FROM GYMNASTICS I DIDN'T SEE A FUTURE IN JUST BEING A GYMNAST LIKE THERE WAS IN CHEERLEADING SAYS HER MOTHER DEEDEE DUNCAN NOTING THAT MANY HIGH SCHOOLS DON'T EVEN OFFER GYMNASTICS ANYMORE BECAUSE OF LIABILITY CONCERNS MONEY TO BE MADE NOW 27 MS WALTERS IS PRESIDENT OF CHEERS INC A CHEERLEADING SCHOOL IN LEXINGTON ITS ALLSTAR SQUAD JUST WON ITS FOURTH NATIONAL TITLE AND WILL PERFORM FOR MISS USA AT A LOCAL DEPARTMENT STORE'S MADE IN THE USA FASHION SHOW SHE HAS ALSO DEVELOPED A LUCRATIVE SIDELINE TEACHING SQUADS FROM AREA SCHOOLS ONE DANCE AND TWO CHEERS 1000 BACK WHEN I CHEERED YOU WERE JUST A CHEERLEADER NOW PARENTS ARE PUTTING A LOT OF MONEY AND TIME INTO THIS SAYS MS WALTERS AT LEAST THEIR KIDS ARE IN GREENUP COUNTY WHERE RURAL WORKINGCLASS PARENTS CAN BARELY AFFORD TENNIS SHOES LET ALONE UNIFORMS AND AIR FARE TO FLORIDA CHEERLEADERS HELD SQUARE DANCES AND POINSETTIA SALES I ASSUMED EVERYONE HAD HOMEMADE PURSES AND HAD TO FUNDRAISE SAYS MS COTTON WHO FIGURES THAT IN HIGH SCHOOL SHE SPENT SEVEN DAYS A WEEK ON CHEERLEADING EITHER PRACTICING CHEERING OR RAISING MONEY BUT SHE SAYS CHEERLEADING WAS WORTH IT PROVIDING THE FINISHING SCHOOL HER FAMILY COULDN'T AFFORD CAMPS HAD CLASSES ON PUBLICRELATIONS SKILLS TV INTERVIEWS GAVE HER SELFCONFIDENCE LOCAL DEPARTMENT STORES ASKED HER TO MODEL AND WHEN THE GOVERNOR VISITED CHEERLEADERS ACTED AS TOWN HOSTESSES I SAW ANOTHER WORLD THROUGH CHEERLEADING SHE SAYS 9303260174 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT HOLLYWORLD LOCAL LURES FOR INTERNATIONAL MOVIE MARKETERS POSTERS ARE THE CENTER OF ATTENTION BY THOMAS R KING HOLLYWOOD SCENT OF A WOMAN HAS BECOME A HIT IN AMERICA SO WHY DID EXECUTIVES OVERSEEING ITS INTERNATIONAL RELEASE LAST MONTH THROW AWAY THE MARKETING CAMPAIGN THAT SUCCESSFULLY LAUNCHED THE FILM IN THE US IN NORTH AMERICA THE MOVIE'S POSTER IS A FUZZY PORTRAIT OF AL PACINO WHO PLAYS A BLIND RETIRED NAVAL OFFICER WALKING DOWN A NEW YORK CITY STREET ACCOMPANIED BY YOUNG ACTOR CHRIS O'DONNELL OVERSEAS HOWEVER THE MOVIE'S POSTER IS A COMBINATION OF TWO IMAGES ONE IS A SHOT OF MR PACINO LOOKING DEEP IN THOUGHT THE OTHER IS FROM A KEY SCENE DURING WHICH MR PACINO DANCES THE TANGO WITH A YOUNG WOMAN HE ENCOUNTERS AT A RESTAURANT IN THE BUSINESS OF SELLING MOVIES WORLDWIDE NEVER BEFORE HAS SO MUCH ATTENTION BEEN PAID TO THE MINUTIAE OF MOVIE MARKETING AND ADVERTISING EVEN THOUGH THE SAME FILM IS BEING SOLD AROUND THE WORLD BY SOME ESTIMATES NEARLY HALF OF ALL US MOVIE CAMPAIGNS GET CHANGED IN SOME WAY FOR THEIR INTERNATIONAL RELEASE THE GOAL OF COURSE IS A BIGGER BANG AT THE BOX OFFICE IF A DIFFERENT PHOTO HERE OR BIGGER LETTERS THERE WILL RESULT IN A MORE ATTENTIONGRABBING POSTER IN GERMANY IT'S ALMOST ALWAYS WORTH IT AT THE CENTER OF ATTENTION INTERNATIONALLY IS THE MOVIE POSTER OR ONESHEET AS HOLLYWOOD EXECUTIVES CALL IT FOREIGN MARKETING CAMPAIGNS RELY MORE ON PRINT IMAGES AND PUBLICITY THAN IN THE US WHERE TV ADVERTISING IS THE PRINCIPAL MOTIVATOR IN SOME COUNTRIES SUCH AS FRANCE ADVERTISING MOVIES ON TELEVISION IS BANNED AND IN MOST OTHER COUNTRIES TV ADVERTISING IS EITHER PROHIBITIVELY EXPENSIVE OR DOESN'T REACH A VERY WIDE AUDIENCE IN SOME CASES THOUGH THE POSTERS USED IN THE US DON'T SAY ENOUGH ABOUT THE MOVIE AT LEAST NOT FOR AUDIENCES THAT HAVEN'T SEEN ANY TV COMMERCIALS IF A POSTER CARRIES ALL THE WEIGHT IT HAD BETTER HAVE A POWERFUL IMAGE THE US VERSIONS OFTEN DON'T DO THAT FOR INSTANCE THE POSTER NEWS CORP'S TWENTIETH CENTURY FOX CAME UP WITH IN THE US FOR ALIEN 3 DIDN'T MAKE THE CUT IT WAS A SIMPLE BLACK DESIGN WITH A FAINT PICTURE OF THE ALIEN MONSTER AND THE MOVIE'S TITLE WHILE THE SHOT WAS ARTISTIC AN ACTIONPACKED TRAILER AND TV ADS WERE GENERALLY GIVEN THE JOB OF SELLING THE MOVIE SO THE REVAMPED INTERNATIONAL POSTER SHOWS A BALD SIGOURNEY WEAVER THE FILM'S STAR IN A MENACING IMAGE THAT INSIDERS TERMED THE TERMINATOR LOOK ALIEN 3 WHICH WAS A DISAPPOINTMENT IN THE US WAS ONE OF THE BIGGEST INTERNATIONAL SUCCESSES LAST YEAR STARS ARE OFTEN FEATURED MORE PROMINENTLY ON INTERNATIONAL POSTERS OVERSEAS AUDIENCES TEND TO HAVE AN INCREDIBLE FASCINATION WITH AMERICAN MOVIES AND AMERICAN MOVIE STARS SINCE WORLD WAR II AMERICAN CULTURE HAS BEEN ONE OF OUR GREAT EXPORTS AND AMERICAN MOVIE STARS ARE SYMBOLS OF THAT CULTURE SAYS ARTHUR COHEN PRESIDENT OF WORLDWIDE MARKETING AT THE PARAMOUNT PICTURES UNIT OF PARAMOUNT COMMUNICATIONS INC MANY AMERICAN ACTORS INCLUDING MR PACINO MICKEY ROURKE AND SYLVESTER STALLONE HAVE BIGGER FOLLOWINGS OVERSEAS THAN THEY DO AT HOME AND THE OVERSEAS AD CAMPAIGNS FOR THEIR MOVIES REFLECT THAT WITH STARS NOT STORYTELLING IMAGES OR SCENERY FRONT AND CENTER CLIFFHANGER AN ACTION FILM STARRING MR STALLONE DUE OUT THIS SUMMER WILL PROBABLY BE MARKETED DIFFERENTLY AROUND THE WORLD FOR THAT REASON INTERNATIONAL EXHIBITORS PREDICT IN COUNTRIES LIKE ITALY WHERE MR STALLONE IS STILL A HUGE STAR SIMPLE POSTERS FEATURING A BIG SHOT OF THE MUSCLEBOUND HERO AND THE MOVIE'S TITLE WILL PROBABLY SUFFICE IN THE US HOWEVER TEASERTRAILERS ALREADY RUNNING IN THEATERS SUGGEST THE MOVIE'S PRODUCERS ARE ANTICIPATING AMERICAN AUDIENCES MAY BE A BIT SKEPTICAL ABOUT MR STALLONE'S RETURN TO ACTION MOVIES AFTER A STRING OF POOR SHOWINGS IN SUCH COMEDIES AS OSCAR AND STOP OR MY MOM WILL SHOOT THE CLIFFHANGER TEASERS WHICH HAVE DRAWN ACCLAIM FROM THEATER OWNERS AND MOVIEGOERS PITCH THE ACTION AND STORY FIRST WITH MR STALLONE TAKING THE BACK SEAT CLIFFHANGER IS BEING PRODUCED BY CAROLCO PICTURES INC AND WILL BE DISTRIBUTED IN THE US AND SOME OTHER TERRITORIES BY SONY CORP'S TRISTAR PICTURES UNIT THE STARS OF UNIVERSAL'S DEATH BECOMES HER A BLACK COMEDY WERE BARELY VISIBLE AT THE BOTTOM OF THE US POSTER INSTEAD A SHOT OF ONE OF THE SUPPORTING ACTRESSES WEARING A LOWCUT DRESS FILLED THE AD THE INTERNATIONAL MARKETING TEAM HOWEVER FELT THAT THE US VERSION DIDN'T TELL ENOUGH ABOUT THE MOVIE THE STARS OR THE SPECIAL EFFECTS SO THE INTERNATIONAL POSTER WAS A LARGE HUMOROUS SHOT OF THE STARS A CONTORTED MERYL STREEP LOOKING ON AS BRUCE WILLIS HOLDS A LIGHTED CANDELABRUM THROUGH A GIANT BUT TASTEFUL HOLE IN GOLDIE HAWN'S STOMACH THE IMAGE ORIGINALLY WAS CREATED BY UNIVERSAL'S DOMESTIC MARKETING TEAM BUT ENDED UP BEING USED FOR DISPLAYS INSIDE THEATER LOBBIES UNIVERSAL IS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC STUDIOS MOST OFTEN CHANGE GEARS ON CAMPAIGNS FOR MOVIES THAT BOMB IN THE US PARAMOUNT COULDN'T FIND AN AUDIENCE AT HOME FOR ITS ROMANTIC COMEDY FRANKIE & JOHNNY IT WAS BACKED IN THE US BY A POSTER THAT FEATURED A SOPHISTICATED CLOSEUP OF THE TWO STARS MICHELLE PFEIFFER AND MR PACINO FOR WHATEVER REASON PARAMOUNT EXECUTIVES BLAME IT ON THE FACT THAT ON THE OPENING WEEKEND PEOPLE WERE GLUED TO THEIR TV SETS WATCHING THE CLARENCE THOMASANITA HILL INCIDENT UNFOLD IT DIDN'T WORK BUT OVERSEAS THE MOVIE WAS PITCHED AS A BLUECOLLAR DECIDEDLY UNSOPHISTICATED ROMANCE THE POSTER SHOWED THE TWO ACTORS IN COSTUME AS A SHORTORDER COOK AND A WAITRESS IN THE US EXECUTIVES HAD FIGURED THAT MOVIEGOERS DIDN'T WANT TO SEE THE GLAMOROUS STARS IN DOWDY ROLES ON THE POSTER BUT IN EUROPE WHERE STRONG LABOR MOVEMENTS MAKE WORKINGCLASS STATUS A PLUS THE POSTERS HIGHLIGHTED THAT FACT AND THE MOVIE PERFORMED SOMEWHAT BETTER US STUDIO EXECUTIVES SOMETIMES DON'T LIKE IT WHEN THEIR INTERNATIONAL COUNTERPARTS TINKER WITH CAMPAIGNS THAT WORKED HERE WHILE LOCAL MARKETING PEOPLE OFTEN HAVE A KEEN SENSE OF WHAT LOCAL MOVIEGOERS WANT SOME HOLLYWOOD EXECUTIVES COMPLAIN THAT THEY OCCASIONALLY MAKE CHANGES JUST FOR THE SAKE OF CHANGE IF A MOVIE IS SUCCESSFUL IN THE US AND THE ADVERTISING ASSOCIATED WITH IT WAS SUCCESSFUL IT'S RISKY TO SCREW AROUND WITH IT SAYS CASEY WOJCIECHOWSKI EXECUTIVE VICE PRESIDENT AT GREY ENTERTAINMENT & MEDIA A BURBANK CALIF MARKETING CONCERN ADDS PARAMOUNT'S ARTHUR COHEN IF IT WORKED HERE IT PROBABLY IS GOING TO WORK IN 98 OF THE WORLD STILL OBVIOUS ALLAMERICAN APPLE PIE REFERENCES OFTEN ARE PLAYED DOWN SONY CORP'S COLUMBIA PICTURES INTERNATIONALIZED THE AD CAMPAIGN FOR ITS CHRISTMAS BLOCKBUSTER A FEW GOOD MEN BY REMOVING THE SWEEPING AMERICAN FLAG INSTEAD THE POSTER'S BACKGROUND IS COLUMNS OF THE COURT HOUSE IN WHICH TOM CRUISE JACK NICHOLSON AND DEMI MOORE FIGHT THEIR CASE A LOT OF TERRITORIES FELT THAT IT CAME OFF AS TOO AMERICAN' SAYS DUNCAN CLARK SENIOR VICE PRESIDENT OF INTERNATIONAL MARKETING FOR COLUMBIA AND TRISTAR COLUMBIA CHANGED MARKETING CAMPAIGNS LAST YEAR FOR ANOTHER HIT A LEAGUE OF THEIR OWN WHICH STARRED GEENA DAVIS TOM HANKS AND MADONNA WE SPENT MONTHS TRYING TO TAKE BASEBALL OUT OF THE CAMPAIGN FOR A MOVIE THAT IS FUNDAMENTALLY ABOUT BASEBALL SAYS J EDWARD SHUGRUE PRESIDENT OF COLUMBIA AND TRISTAR'S DISTRIBUTION OPERATIONS BASEBALL ISN'T PLAYED IN EVERY COUNTRY AROUND THE WORLD AND IS UNDERSTOOD IN EVEN LESS PLACES MR SHUGRUE CONCEDES COLUMBIA WAS TRYING TO GENTLY TRICK MOVIEGOERS SOMETIMES YOU SPEND A LOT OF TIME TRYING TO BUILD A CAMPAIGN AROUND SOMETHING THAT ISN'T NECESSARILY TRUE TO THE PICTURE HE SAYS IN THIS CASE IT DIDN'T WORK THE MOVIE WAS A DISAPPOINTMENT OVERSEAS AND THEN THERE ARE MOVIES THAT ARE DISASTERS EVERYWHERE NO MATTER WHAT THE AD CAMPAIGN IN THE US METROGOLDWYNMAYER INC'S ACTION PICTURE DIGGSTOWN WAS DEAD ON ARRIVAL IT WAS SUPPORTED BY PERHAPS THE MOST MALIGNED ONESHEET OF THE YEAR AGAINST A WHITE BACKGROUND THE TWO STARS JAMES WOODS AND LOU GOSSETT JR STOOD SIDEBYSIDE AND SMILED THE TITLE BLARED IN NOISY FLUORESCENT PINK AND ORANGE LETTERS THE INTERNATIONAL TEAM GAVE THE ENTIRE CAMPAIGN A MAKEOVER INCLUDING A NEW TITLE MIDNIGHT STING THE POSTER OVERSEAS SHOWED MR GOSSETT SITTING ON A STOOL IN THE CORNER OF A BOXING RING WITH MR WOODS BEHIND HIM CLUTCHING HANDFULS OF MONEY WE THOUGHT WE HAD A BETTER CAMPAIGN UIP'S MR SMITH SAYS WITH A SIGH REVIEWING ANEMIC BOXOFFICE RETURNS FROM ABROAD INCLUDING THAILAND AND THE PHILIPPINES YOU WOULD THINK SOMEWHERE THIS WOULD WORK IT HASN'T MR KING IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU