MIAMI LAKES FLA L LURIA & SON INC EXPECTS TO REPORT PERSHARE EARNINGS FOR THE YEAR ENDED JAN 30 THAT WILL VERY COMFORTABLY EXCEED ANALYSTS' CURRENT ESTIMATES OF 45 CENTS A SHARE SAID PETER LURIA PRESIDENT AND CHIEF OPERATING OFFICER IN FISCAL 1992 ENDED FEB 1 1992 THE SPECIALTY DISCOUNT RETAILER REPORTED EARNINGS OF 12 MILLION OR 22 CENTS A SHARE ON SALES OF 2076 MILLION MR LURIA ALSO SAID HE EXPECTS THE PERCENTAGE INCREASE IN EARNINGS FOR THE FOURTH QUARTER TO BE SIGNIFICANTLY GREATER THAN THE 19 INCREASE ALREADY REPORTED FOR FOURTHQUARTER SALES IN THE YEARAGO QUARTER THE COMPANY REPORTED EARNINGS OF 28 MILLION OR 51 CENTS A SHARE ON SALES OF 858 MILLION MR LURIA SAID IN AN INTERVIEW THAT THE COMPANY'S PLANNED MOVE INTO SPECIALTY DISCOUNT RETAILING FROM CATALOG SHOWROOM WAS INADVERTENTLY ACCELERATED LAST YEAR BY HURRICANE ANDREW WHICH STRUCK SOUTH FLORIDA IN AUGUST THE COMPANY HAD EXPECTED TO BEGIN THE TRANSFORMATION THIS FALL BUT A LURIA STORE THAT WAS SEVERELY DAMAGED IN THE STORM WAS REBUILT AS A SPECIALTY DISCOUNT SITE AN OPERATION THAT IS FAR EXCEEDING WHAT WE EXPECTED MR LURIA SAID INCREASES IN MONTHLY SALES IN THE STORE HAVE BEEN AS HIGH AS 75 HE SAID BOOSTED BY A COMBINATION OF THE NEW MARKETING STRATEGY AND STRONG PURCHASES BY CONSUMERS REPLACING ITEMS DAMAGED OR LOST IN THE HURRICANE WE KNEW WE HAD TO CHANGE SAID MR LURIA WHO NOTED THAT THE COMPANY HAD BEEN WATCHING SALES AND PROFITS DECLINE IN RECENT YEARS CUSTOMERS TODAY HAVE LESS TIME TO SHOP AND THEY WANT CONVENIENCE OUR INITIAL RESULTS WITH THE MODIFIED STORE ARE VERY VERY ENCOURAGING LURIA WHICH CURRENTLY OPERATES 50 STORES IN FLORIDA EXPECTS TO OPEN TWO ADDITIONAL STORES THIS YEAR WITH THE NEW FORMAT SALES SPACE IN THE NEW OUTLETS WILL AVERAGE ABOUT 25000 SQUARE FEET MR LURIA ALSO SAID THERE ARE PLANS TO MOVE TO OTHER STATES FROM THE COMPANY'S EXISTING BASE IN FLORIDA BUT NOT FOR SEVERAL YEARS THERE'S STILL PLENTY OF OPPORTUNITY FOR US IN FLORIDA 9303260172 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT HOLLYWORLD ENGLISH PLEASE FOREIGNLANGUAGE FILMS HAVE THEIR FANS IN THE US BUT NOT MANY BY RICHARD TURNER HERE'S THE PITCH BABE WE'RE IN 17TH CENTURY FRANCE THERE'S THIS OLD GUY AND HIS WIFE DIES SO HE BECOMES A GROUCHY RECLUSE HE SPENDS ALL HIS TIME PLAYING LUGUBRIOUS MUSIC ON A NOWEXTINCT MUSICAL INSTRUMENT CALLED A VIOLA DA GAMBA WHICH SOUNDS SOMETHING LIKE A DOWNINTHEMOUTH CELLO THERE'S NOT MUCH OF A PLOT EXCEPT THAT THIS YOUNG HANDSOME MAN SHOWS UP BUT HE'S A PRETTY UNSYMPATHETIC CHARACTER TOO HE BREAKS THE HEART OF THE OLD MAN'S DAUGHTER AND LEAVES TO BECOME A FOP AT VERSAILLES OH YEAHONE MORE THING THE WHOLE THING'S IN FRENCH OK OK IT'S NOT EXACTLY THE KIND OF CONVERSATION THAT THE HOLLYWOOD BIGWIGS HAVE OVER PELLEGRINO AT MORTON'S AND THAT'S THE POINT THE PURVEYORS OF FOREIGNLANGUAGE FILMS IN THE US INHABIT A VASTLY DIFFERENT WORLD THAN THEIR BIGSTUDIO BRETHREN THE FILM DESCRIBED ABOVE IS TOUS LES MATINS DU MONDE ALL THE MORNINGS OF THE WORLD AND THE SUMMARY WHILE TECHNICALLY ACCURATE IS PERHAPS A BIT UNFAIR AFTER ALL FOR SOME MOVIEGOERS THIS FILM IS MORE SATISFYING THAN A HOST OF TERMINATORS AND HOME ALONES AND FOR A HANDFUL OF FILM COMPANIES THAT DISTRIBUTE ENGLISHLANGUAGE ART FILMS ALONG WITH FOREIGNLANGUAGE FARE IT CAN BE A GOOD BUSINESS RECENT HITS SUCH AS HOWARDS END AND THE CRYING GAME ALONG WITH IMPORTS LIKE CINEMA PARADISO AND EUROPA EUROPA HAVE BEEN TRIUMPHS ON THE SPECIALTY CIRCUIT BUT IT'S A TOUGH BUSINESS AND FOR A BASIC REASON AMERICAN AUDIENCES UNLIKE THOSE IN JUST ABOUT EVERY OTHER COUNTRY SIMPLY DON'T SEEM TO LIKE FOREIGNLANGUAGE FILMS LINGUA FRANCA PART OF THE DISDAIN CAN BE BLAMED ON THE CULTURAL ARROGANCE OF POSSESSING THE WORLD'S DOMINANT LANGUAGE ENGLISH SAYS JACK VALENTI HEAD OF THE MOTION PICTURE ASSOCIATION OF AMERICA IS THE LINGUA FRANCA OF THE WORLD AUDIENCES ELSEWHERE ARE USED TO DUBBING AND SUBTITLES BUT AMERICANS WON'T SUSPEND THEIR DISBELIEF FOR LIPS MOVING AT THE WRONG TIME AND THEY CERTAINLY AREN'T ABOUT TO READ BUT HOLLYWOOD FILMMAKERS SAY IT GOES BEYOND THAT AMERICAN FILMS THEY SAY ARE STORYDRIVEN WHILE MANY OVERSEAS MOVIES ARE CHARACTERDRIVEN AS WELL AS BEING HIGHLY POLITICAL BROODINGLY PHILOSOPHICAL AND FATALISTIC ALL IN ALL PRETTY UNAPPETIZING FARE TO THE VAST MAJORITY OF AMERICAN MOVIEGOERS FOR DISTRIBUTORS OF FOREIGNLANGUAGE FILMS THE LIMITED AUDIENCE IS ONLY PART OF THE PROBLEM THEY ALSO MUST CONTEND WITH AN INCREASINGLY COMPETITIVE FIELD AMONG THE COMPANIES THAT DISTRIBUTE FOREIGN FARE OCTOBER FILMS THE DISTRIBUTOR OF TOUS LES MATINS SONY CORP'S SONY CLASSICS NEW LINE CINEMA CORP'S FINE LINE MIRAMAX FILMS INC AND SAMUEL GOLDWYN CO EVEN ORION PICTURES CORP FRESH FROM BANKRUPTCY PROCEEDINGS IS REENTERING THE BUSINESS MOREOVER THESE COMPANIES ARE COMPETING FOR A DWINDLING NUMBER OF MOVIE SCREENS OVER THE PAST DECADE MANY REVIVAL OR ART HOUSES WHICH TYPICALLY SHOW FOREIGN FILMS HAVE BEEN SWALLOWED UP BY THE RAPIDLY EXPANDING LARGE THEATER CHAINS IN ADDITION VIDEO COMPANIES INCREASINGLY ARE FINANCING SMALL FILMS AND THEY NEED A TOKEN THEATRICAL RELEASE TO STIMULATE VIDEO SALES THOSE FILMS ARE SQUEEZING OUT SOME OF THE FOREIGNLANGUAGE MOVIES NOW THE BAD NEWS THINGS MAY GET EVEN WORSE THE AUDIENCE FOR FOREIGNLANGUAGE AND OTHER SPECIALTY FILMS IS AGING AND YOUNG PEOPLE JUST AREN'T GROUNDED IN MOVIE HISTORY ANYMORE HOLLYWOOD ATTORNEY PETER DEKOM RECALLS BEING SURROUNDED BY ITALIAN PRODUCERS AT THE CANNES FILM FESTIVAL WHY DON'T YOU PLAY OUR MOVIES ANYMORE IN YOUR COUNTRY THE PRODUCERS COMPLAINED IN THE 1960S YOU BOUGHT EVERYTHINGNOW NOTHING IT IS A CONSPIRACY BY THE BIG STUDIOS MR DEKOM TOLD THEM YOU REALLY WANT AMERICANS TO WATCH YOUR MOVIES TAKE 1 BILLION AND CONTRIBUTE IT TO THE AMERICAN EDUCATIONAL SYSTEM THE QUALITY OF THE CURRENT FILMS DESERVES SOME OF THE BLAME YOUNGER MOVIEGOERS MISSED THE ERA WHEN AN EXTRAORDINARY NUMBER OF GREAT FILMMAKERS LIBERATED BY THE EASING OF WORLD WAR II CENSORSHIP AND OTHER RESTRAINTS WERE AT WORK AROUND THE GLOBE FEDERICO FELLINI FRANCOIS TRUFFAUT INGMAR BERGMAN LUIS BUNUEL BERNARDO BERTOLUCCI VITTORIO DE SICA AKIRA KUROSAWA SATYAJIT RAY AND JEAN LUCGODARD TO NAME A FEW SOME FOREIGN FILMS BECAME SOLID AMERICAN HITS A MAN AND A WOMAN Z LA DOLCE VITA AND THE ALLTIME FOREIGNLANGUAGE CHAMP I AM CURIOUS YELLOW ACCORDING TO THE ENTERTAINMENT TRADE NEWSPAPER VARIETY SUBTITLED IMPORTS HAVE CAPTURED A FRACTION OF A PERCENTAGE POINT OF THE ANNUAL US BOX OFFICE SINCE 1982 IN 1969 THE PEAK YEAR IT WAS 4 FREER ATTITUDES TOWARDS SEX OVERSEAS ACCOUNTED FOR MUCH OF THE APPEAL BACK THEN ALTHOUGH THAT HAS COME FULL CIRCLE BASIC INSTINCT WAS THE BIGGEST BOXOFFICE DRAW IN THE WORLD LAST YEAR THE CORE AUDIENCE FOR FOREIGNLANGUAGE FILMS TODAY CONSISTS OF 35TO50YEAROLDS WHO CUT THEIR TEETH ON SUCH MOVIES OFTEN IN COLLEGE FILM SOCIETIES TODAY MANY OF THOSE COLLEGE FILM GROUPS SCREEN BEVERLY HILLS COP NOT CRIES AND WHISPERS THERE ARE EXCEPTIONS THE RECENT FRENCH FILM LA FEMME NIKITA WAS SCORNED AS TOO COMMERCIAL BY MANY CRITICS WHO USUALLY FAWN OVER FOREIGN ENTRIES DISTRIBUTOR GOLDWYN KNEW IT HAD TO MARKET THIS SEXY STYLISH THRILLER DIFFERENTLY INSTEAD OF TARGETING THE USUAL FILMSOCIETY MEMBERS AND SYMPHONYGOERS THE COMPANY SPENT 50000 AT GALLERIES DISCOS AND NIGHTCLUBS INVITING THE 18TO30YEAROLD BLACKCLOTHING CROWD TO SCREENINGS WE TOLD PEOPLE THIS WAS THE COOLEST THING IN THE WORLD THAT IF YOU WERE HIP YOU HAD TO SEE IT SAYS STEVE ROTHENBERG GOLDWYN'S DISTRIBUTION CHIEF AND WE ATTRACTED A LOT OF PEOPLE WHO NORMALLY DON'T GO TO FOREIGN FILMS GOLDWYN ALSO USED AN OLD MOVIE TRICK ONE THAT WORKS BEST IN NEW YORK WITH ITS STUDIO54 MENTALITY INSTEAD OF OPENING ON FIVE SCREENS THE FILM OPENED ON TWOONE IN GREENWICH VILLAGE THE OTHER IN A SMALL 300SEAT THEATER UPTOWN BOTH THEATERS SOLD OUT VIRTUALLY AROUND THE CLOCK AND THE LINE STRETCHED AROUND THE BLOCK THE THEORY WAS IF YOU CAN'T GET IN IT'S GOT TO BE WORTH GOING TO SAYS MR ROTHENBERG THE MOVIE GROSSED ABOUT 5 MILLION NATIONWIDE AN EXCELLENT FOREIGNLANGUAGE RUN THEN GOLDWYN ALMOST MADE A CLASSIC MISTAKE MR ROTHENBERG CONCEDES OUR EYES GOT BIG HE SAYS WE WANTED TO PUSH IT TO THE NEXT LEVEL THAT WOULD MEAN DUBBING IT IN ENGLISH HOPING TO ATTRACT PEOPLE WHO WON'T READ SUBTITLES THAT HOWEVER HARDLY EVER WORKS FOR AMERICAN AUDIENCES AS THE PRODUCERS OF THE GERMAN FILM DAS BOOT FOUND OUT A DECADE AGO THE FILM SET ON A UBOAT DURING WORLD WAR II WAS A HIT EVERYWHERE IN EUROPE AND THE SUBTITLED VERSION WAS HEATING UP THE ARTHOUSE CIRCUIT IN THE US HOPING FOR MORE THE PRODUCERS WORKED FURIOUSLY TO DO A TOPQUALITY DUBBED VERSION FOR A WIDE RELEASE IN THE US THE SAME ACTORS WERE USED SO THE VOICES MATCHED THE FACES AND HAD AUTHENTIC GERMAN ACCENTS MAINSTREAM AUDIENCES TORPEDOED IT ALMOST IMMEDIATELY THE DISTRIBUTORS OF CINEMA PARADISO ALSO WANTED A WIDE RELEASE AND CONSIDERED A DUBBED VERSION USING THE VOICE OF WALTER MATTHAU AS THE ELDERLY THEATER PROPRIETOR BUT TESTING REVEALED THAT AUDIENCES WOULDN'T GO FOR THE DUBBING AND IT WAS CONFINED TO THE VIDEO RELEASE THERE ARE EXCEPTIONS WALT DISNEY CO MADE A TIDY PROFIT WHEN IT DUBBED A NORWEGIAN FILM GEARED TO CHILDREN SHIPWRECKED TICKET BUYERS HAD NO REASON TO KNOW IT WAS DUBBED AND SOME CLAIM COMPUTERGENERATED BREAKTHROUGHS IN DUBBING TECHNOLOGY WILL SOLVE THE PROBLEM BY MAKING THE DUBBING BARELY NOTICEABLE THERE WAS NEVER ANY ISSUE OF DUBBING TOUS LES MATINS WHICH WAS AIMED SQUARELY AT AUDIENCES SECURE IN READING THEIR MOVIES OCTOBER FILMS EXECUTIVES WON'T SAY WHAT THEY PAID AS A MINIMUM GUARANTEE FOR THE FILM BUT IT PROBABLY FALLS NEAR THE HIGH END OF THE 100000TO1 MILLION RANGE FOR FOREIGNLANGUAGE FILMS THE PRICE COVERS ALL DOMESTIC DISTRIBUTION RIGHTS INCLUDING HOME VIDEO AND TELEVISION DESPITE THE DIFFICULT SUBJECT MATTER TOUS LES MATINS HAD SOME THINGS GOING FOR IT THE MOVIE STARRED GERARD DEPARDIEU THE MARLON BRANDO OF FOREIGNLANGUAGE FILMS AND AN ACTOR WITH GENERAL NAME RECOGNITION IN THE US AFTER THE RECENT GREEN CARD AND 1492 THE FILM ALSO WON SEVEN CESAR AWARDS THE FRENCH OSCAR INCLUDING BEST PICTURE AND BEST DIRECTOR BUT A CRUSHING BLOW CAME EARLY ONLY ONE FILM FROM EACH COUNTRY MAY BE CONSIDERED FOR A US ACADEMY AWARD AS BEST FOREIGN FILM AND FRENCH FILM AUTHORITIES CHOSE A DIFFERENT ENTRY OCTOBER BUDGETED 40000 TO OPEN TOUS LES MATINS LAST DECEMBER BY COMPARISON DISNEY'S MARKETING BUDGET TO OPEN ALADDIN IS ESTIMATED AT ABOUT 15 MILLION SPENT LARGELY ON TELEVISION SPOTS WITH ITS POCKET CHANGE OCTOBER WORKED A TIEIN WITH A FRENCH BOOKSTORE IN MANHATTAN IT HIRED A VIOLA DA GAMBA GROUP TO PLAY AT GALLERIE LAFAYETTE ON FIFTH AVENUE ALONG WITH A DISPLAY OF 10 PERIOD COSTUMES IN THE ATRIUM OF TRUMP TOWER THE CAST AND CREW HELD A BENEFIT FOR THE PASTEUR INSTITUTE SOME 20000 STUDY GUIDES WERE PRODUCED WITH INFORMATION ABOUT THE REALLIFE HISTORICAL FIGURES DEPICTED IN THE FILM AND SENT TO SECONDARYSCHOOL AND UNIVERSITY EDUCATORS BY THE END OF ITS RUN TOUS LES MATINS WILL HAVE COST ABOUT 500000 TO RELEASE THE FILM MAY GROSS UP TO 3 MILLION AND PROVIDE ITS DISTRIBUTORS WITH A MODEST PROFIT SPECIALTY FILMS AREN'T USUALLY A BUSINESS FOR THE MAJOR STUDIOS FOR WHICH A HOME ALONE CAN GROSS 500 MILLION WORLDWIDE WITH VIDEO SALES TO MATCH BUT SOME MAJORS ARE NIBBLING AT THE EDGES OF THE BUSINESS AND THAT MAKES THE REGULARS NERVOUS SHORTLY AFTER HOWARDS END WAS RELEASED DISNEY SIGNED A DISTRIBUTION AGREEMENT WITH MERCHANT IVORY PRODUCTIONS THE FILM'S PRODUCERS WHICH WILL RESULT IN THE COMING JEFFERSON IN PARIS MCA INC'S UNIVERSAL STUDIOS HAS SET UP A DISTRIBUTION COMPANY WITH POLYGRAM A UNIT OF PHILIPS ELECTRONICS NV WHICH WILL MAKE FORAYS INTO LOWBUDGET HIGHQUALITY MOVIES SONY CORP OWNS SONY CLASSICS AND DISTRIBUTES ITS VIDEOS BUT DOESN'T INTERFERE WITH ITS BUSINESS DECISIONS BUT HOLLYWOOD IS ALSO WARY UNABLE TO FORGET SOME RECENT BIG DEBACLES IN 1988 WEINTRAUB ENTERTAINMENT GROUP A MAINSTREAM HOLLYWOOD COMPANY THOUGHT IT HAD SCORED A COUP WHEN IT RUSHED TO CANNES AND PAID 5 MILLION FOR THE US RIGHTS TO THE BIG BLUE A FRENCH FILM THAT WAS TO TURN INTO A GIANT HIT IN ITS NATIVE COUNTRY A LOVE STORY SET ON A DESERTED ISLAND THE FILM CONTAINED LITTLE DIALOGUE AND SOME OF THAT WAS IN ENGLISH WE TRIED TO TURN IT INTO SOMETHING IT WASN'T RECALLS A FORMER EXECUTIVE OF WEINTRAUB THE HOLLYWOODITES CUT EIGHT MINUTES OUT OF THE FILM CHANGED THE ENDING TO MAKE IT MORE UPBEAT AND REPLACED THE QUIETER SCORE WITH ONE BY BILL CONTE WRITER OF THE ROCKY THEME WEINTRAUB WHICH HAS SINCE FILED FOR BANKRUPTCY PROTECTION THEN POURED IN MARKETING MONEY AND OPENED THE MOVIE ON 900 SCREENS IT BOMBED IT JUST WASN'T AN AMERICAN MOVIE SAYS THE EXECUTIVE THE STORY WAS KIND OF RAMBLING IT DIDN'T HAVE CLEARCUT ACT BREAKS AND ITS WHOLE NARRATIVE STRUCTURE WAS DIFFERENT FOR SOME STUDIOS RELEASING FOREIGN FILMS CAN BE A WAY TO GET FIRST CRACK AT NEW FILMMAKERS AND ACTORS TO BUILD A FARM TEAM OF UPANDCOMING TALENT PAUL VERHOEVEN MADE DUTCH FILMS THAT PLAYED THE SPECIALTY CIRCUIT HERE THEN CAME TO HOLLYWOOD TO MAKE ROBOCOP AND TOTAL RECALL FRENCH FILMMAKER BARBET SCHROEDER MADE SINGLE WHITE FEMALE MONA LISA TO ANGELS BUT AGAIN THE TRACK RECORD IS MIXED NEIL JORDAN FOR EXAMPLE WAS INVITED TO HOLLYWOOD AFTER HE MADE THE WELLRECEIVED MONA LISA HE TURNED OUT THE FORGETTABLE WE'RE NO ANGELS AND HIGH SPIRITS HE WENT BACK TO HIS ROOTS AND CAME UP WITH THE CURRENT CRITICAL HIT THE CRYING GAME LASSE HOLSTROM WHOSE SWEDISH FILM MY LIFE AS A DOG WAS A FAMOUS FROMNOWHERE FIND BY SKOURAS PICTURES ALSO WENT HOLLYWOOD THE RESULT WAS THE UNSUCCESSFUL ONCE AROUND THE STUDIOS ALSO LOOK TO FOREIGN FILMS FOR STORY IDEAS AND HOLLYWOOD REMAKES OF FOREIGNLANGUAGE PICTURES ARE GETTING COMMONPLACE THE RECENT SCENT OF A WOMAN IS A REMAKE OF AN ITALIAN FILM A REMAKE OF LA FEMME NIKITA RECENTLY OPENED AS POINT OF NO RETURN AND SOMMERSBY A REMAKE OF THE RETURN OF MARTIN GUERRE STARRING JODIE FOSTER AND RICHARD GERE GOT POSITIVE CRITICAL NODS WHEN IT OPENED LAST MONTH BUT THE DISTRIBUTORS OF SPECIALTY FILMS ARE CONFIDENT THEY CAN BEAT THE STUDIOS WHOSE OVERHEAD AND CORPORATE CULTURE MAKE IT DIFFICULT TO LAVISH THE SPECIAL CARE AND TIGHT BUDGETS THAT THE SMALLER FILMS REQUIRE WE KNOW WHEN THE CRITIC CHANGES IN CLEVELAND SAYS MICHAEL BARKER ONE OF A TROIKA OF COPRESIDENTS THAT RUNS SONY CLASSICS WE KNOW WHAT DIRECTORS INDIVIDUAL CRITICS LIKE YOU CAN'T GET THESE THINGS FROM MARKET RESEARCH YOU GET IT FROM LIVING THE MARKETPLACE SPECIALTYFILM DISTRIBUTORS IN FACT ARE OPTIMISTIC THAT A HUGE GROWTH SPURT IS RIGHT AROUND THE CORNER THEY PARTLY CREDIT A SPILLOVER EFFECT FROM THE SUCCESS OF THE CRYING GAME AND HOWARDS END BUT THEY CITE A MORE BASIC REASON IT'S A REASON THAT DROVE MANY INTO THE BUSINESS IN THE FIRST PLACE AND IT KEEPS MANY FROM LEAVING JEFF LIPSKY A PARTNER IN OCTOBER FILMS PUTS IT PERHAPS MOST SUCCINCTLY THE ADULTS OF THE WORLD HE SAYS ARE REALIZING THAT HOLLYWOOD FILMS ARE SO WRETCHED MR TURNER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9303260171 930326 SANDOZ POSTS A 34 INCREASE IN 1992 PROFIT CHAIRMAN TO TURN OVER JOB OF RUNNING COMPANY TO HEAD OF US UNIT BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH SANDOZ LTD POSTED A 34 JUMP IN 1992 NET INCOME AND ANNOUNCED UNEXPECTEDLY THAT CHAIRMAN MARC MORET WILL HAND OVER THE DAILY RUNNING OF THE COMPANY TO DANIEL C WAGNIERE WHO HEADS US OPERATIONS SANDOZ A PHARMACEUTICAL AND CHEMICAL CONCERN SAID CONSOLIDATED NET ROSE TO 15 BILLION SWISS FRANCS 98945 MILLION FROM 11 BILLION FRANCS IN 1991 AS PREVIOUSLY REPORTED GROUP SALES ROSE 8 TO 144 BILLION FRANCS FROM 134 BILLION FRANCS COMPANY MANAGEMENT EXPRESSED SATISFACTION WITH THE GROUP'S RESULTS IN PROPOSING A 34 INCREASE IN THE DIVIDEND TO 47 FRANCS PER SHARE AND PER BEARER PARTICIPATION CERTIFICATE ANALYSTS HAD EXPECTED A DIVIDEND INCREASE HOWEVER BANK JULIUS BAER FINANCIAL ANALYST MIRKO SANGIORGIO SAID HE WAS SURPRISED AT THE SIZE OF THE INCREASE SANDOZ SAID PROFIT GROWTH WAS THE RESULT OF IMPROVEMENTS IN OPERATIONAL PERFORMANCE AND THE FIRSTTIME APPLICATION OF INTERNATIONAL ACCOUNTING STANDARDS PROFITABILITY AS MEASURED BY RETURN ON SALES ADVANCED LAST YEAR TO 104 FROM 83 IN 1991 SANDOZ SAID MR WAGNIERE WILL TAKE OVER AS PRESIDENT OF THE EXECUTIVE BOARD OR CHIEF OPERATING OFFICIER ON JULY 1 HE CURRENTLY IS CHIEF EXECUTIVE OFFICER AT SANDOZ CORP NEW YORK A POST HE HAS HELD SINCE 1987 MR MORET REMAINS CHAIRMAN OF THE BOARD AND RETAINS THE TITLE OF CHIEF EXECUTIVE ALTHOUGH HE HAS RELINQUISHED THE DAILY OPERATIONAL RESPONSIBILITY TO MR WAGNIERE FINANCIAL ANALYSTS LONG HAVE SPECULATED ABOUT A SUCCESSOR FOR THE 69YEAROLD MR MORET WHO HAS RUN THE COMPANY WITH AN IRON HAND SINCE HE TOOK OVER AS EXECUTIVE BOARD PRESIDENT IN 1981 MR MORET'S DECISION TO STAY ON AS CHAIRMAN SWISS VOLKSBANK ANALYST BIRGIT KULHOFF SAID SHOWS HE IS LEAVING IN STEPS BUT WILL RETAIN INFLUENCE MR SANGIORGIO OF BANK JULIUS BAER SAID MR MORET WILL REMAIN THE SPIRITUAL FATHER IN THE BACKGROUND I DO NOT EXPECT A CHANGE IN THE COMPANY'S STRATEGY MR WAGNIERE A TRILINGUAL AGROENGINEER HAS BEEN WITH SANDOZ FOR 30 YEARS MR WAGNIERE IS TRULY MULTICULTURAL PERFECT IN ENGLISH FRENCH AND GERMAN SAID A SANDOZ INSIDER HOWEVER HIS TIME AS HEAD OF US OPERATIONS MAY HAVE FINALLY PUSHED MR MORET TO CHOOSE HIM AS SUCCESSOR THE INSIDER SUGGESTED THE US ACCOUNTS FOR ABOUT ONETHIRD OF SANDOZ BUSINESS AND AT SANDOZ ANOTHER INSIDER SAID THE US IS A VERY IMPORTANT TESTING GROUND ANALYSTS ARE FORECASTING A JUMP IN SANDOZ'S PROFIT THIS YEAR MS KULHOFF WHO IS EXPECTING AN 18 INCREASE SAYS SANDOZ WILL CONTINUE TO GAIN FROM ITS BLOCKBUSTER TRANSPLANTOPERATION PRODUCT SANDIMMUN AT THE SAME TIME SANDOZ'S CONSTRUCTIONCHEMICALS BUSINESS IS WELL PLACED TO BENEFIT FROM AN UPTURN IN THE US ECONOMY SHE SAID ADDING SANDOZ WILL BE A BENEFICIARY OF THE CLINTON INVESTMENT PLAN MR SANGIORGIO WHO FORSEES A 13 TO 14 RISE IN NET INCOME THIS YEAR SAYS SANDOZ'S NUTRITION DIVISION ALSO IS EXPECTED TO DO WELL HOWEVER AGROCHEMICALS AND SEEDS WILL BE HURT BY DEPRESSED DEMAND IN EUROPE HE PREDICTED 9303260170 930326 PRATT HOTEL LOSES SUIT OVER TRUMP PURCHASE OF ATLANTIC CITY LAND ATLANTIC CITY NJ A STATE JUDGE RULED AGAINST PRATT HOTEL CORP IN ITS SUIT CHARGING DONALD TRUMP WITH INTERFERING WITH A PRATT CONTRACT TO BUY A PIECE OF LAND THE DISPUTE BEGAN WHEN MR TRUMP BOUGHT A PIECE OF LAND IN ATLANTIC CITY IN 1989 FROM PENTHOUSE INTERNATIONAL LTD PRATT WHICH RUNS THE SANDS CASINO HOTEL HAD ATTEMPTED TO BUY THE LAND FROM THE PENTHOUSE UNIT OF BOB GUCCIONE'S GENERAL MEDIA INTERNATIONAL INC TO BUILD A NEW CASINO IT SUBSEQUENTLY SUED MR TRUMP AND PENTHOUSE FOR ANTITRUST VIOLATIONS CONSPIRACY AND RACKETEERING CLAIMING THAT THEY HAD VIOLATED A BINDING AGREEMENT BETWEEN PRATT AND PENTHOUSE FOR SALE OF THE LAND PRATT SOUGHT 750 MILLION IN DAMAGES WHICH COULD HAVE BEEN TREBLED UNDER ANTIRACKETEERING LAWS NEW JERSEY SUPERIOR COURT JUDGE ANTHONY GIBSON RULED IN FAVOR OF MR TRUMP AND PENTHOUSE ON ALLCHARGES SAYING THAT THE SUIT WENT TOO FAR COST TOO MUCH TOOK TOO LONG AND PROVED TOO LITTLE THE PLOT OF LAND WHERE PENTHOUSE ERECTED A STEEL SUPERSTRUCTURE BEFORE ABANDONING PLANS TO BUILD A CASINO IS LOCATED ACROSS A NARROW STREET FROM THE TRUMP PLAZA CASINO MR TRUMP SAID HE PURCHASED THE LAND TO EXPAND THE TRUMP PLAZA THIS WAS PROBABLY THE BIGGEST LEGAL VICTORY OF MY LIFE HE CLAIMED AFTER THE VERDICT NOW THAT I WON THE SUIT I'M GOING TO START DEMOLITION AT ONCE HE SAID THAT HE WOULD EVENTUALLY USE THE LAND TO EXPAND HIS CASINO 9303260169 930326 INTERNATIONAL WELLCOME'S PRETAX PROFIT JUMPED 33 IN FIRST HALF BUT INVESTORS DUMP STOCK BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL BRITISH DRUG MAKER WELLCOME PLC REPORTED A 33 INCREASE IN FIRSTHALF PRETAX PROFIT ONLY TO SEE ITS STOCK FALL 8 IN LONDON MARKETS INVESTORS BEGAN DUMPING WELLCOME SHARES AFTER LONDON ANALYSTS EMERGED FROM A MEETING WITH MANAGEMENT CONVINCED THAT THE COMPANY'S LONGTERM SALES GROWTH IS DESTINED TO WANE WELLCOME'S SHARES DROPPED AS LOW AS 814 PENCE IN HEAVY TRADING YESTERDAY MORNING BUT SUBSEQUENTLY RECOUPED PART OF THE DECLINE ENDING THE DAY DOWN 72 PENCE AT 818 PENCE SOME FUND MANAGERS CAUTIONED THAT THE DECLINE COULD TRIGGER A FUNDAMENTAL REAPPRAISAL OF WELLCOME STOCK WHICH HAS RESISTED INVESTORS' MOUNTING DISENCHANTMENT WITH MOST DRUG ISSUES IN RECENT WEEKS THE APPARENT IMPACT ON EARNINGS IS SUCH THAT WELLCOME WHICH HAD BEEN PERCEIVED AS THE WORLD'S FASTESTGROWING PHARMACEUTICAL COMPANY MIGHT NOT BE PERCEIVED AS THAT ANY LONGER SAID A FUND MANAGER AT ONE MAJOR BRITISH INSURER IN A PHONE INTERVIEW WELLCOME CHIEF EXECUTIVE JOHN ROBB ACKNOWLEDGED HE HAD BALKED AT OFFERING ANALYSTS LONGTERM PROFIT PREDICTIONS BECAUSE OF TURBULENT CONDITIONS IN SOME EUROPEAN MARKETS AND THE UNCERTAINTY OVER FUTURE US HEALTHCARE POLICY BUT I'M ABSOLUTELY STAGGERED THAT ANYBODY COULD WALK OUT OF THAT ROOM AND SAY SELL WELLCOME' ON THE BASIS OF WHAT THEY HEARD FROM ME OR MY COLLEAGUES HE SNAPPED I CAN'T PREDICT WHAT'S GOING TO HAPPEN IN 1994 UNTIL SUCH TIME AS I KNOW WHAT'S GOING TO HAPPEN IN THE US WHICH IS HALF OUR BUSINESS IF THE CLINTON ADMINISTRATION COMES FORWARD WITH DRACONIAN REFORMS CLEARLY THAT'S GOING TO HAVE AN IMPACT ON WELLCOME HE ADDED IT'S EASY TO SEE WHY MR ROBB WAS SO MIFFED THE COMPANY REPORTED THAT PRETAX PROFIT IN THE SIX MONTHS ENDED FEB 27 JUMPED TO 3246 MILLION 4796 MILLION FROM 2447 MILLION A YEAR EARLIER SALES FROM CONTINUING OPERATIONS CLIMBED 22 TO 103 BILLION FROM 839 MILLION WHILE PROFIT MARGINS FATTENED TO 305 DURING THE FIRST HALF UP 38 PERCENTAGE POINTS FROM A YEAR EARLIER 9303260168 930326 VALLEY FORGE SCIENTIFIC CORP OAKS PA VALLEY FORGE SCIENTIFIC CORP RECEIVED PERMISSION FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET A SINGLEUSE DISPOSABLE MASK TO BE USED IN CARDIOPULMONARY RESUSCITATION IT SIGNED AN EXCLUSIVE 10YEAR DISTRIBUTION AGREEMENT WITH CDX CORP FOR THE NEW MASK 9303260167 930326 NEW JERSEY PROBES PITFALLS OF OUTSOURCING CARINSURANCE SERVICE OF GM UNIT TURNS INTO FIASCO BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL HOPING TO CUT THEIR PAPERWORK COSTS MORE AND MORE COMPANIES AND GOVERNMENTAL AGENCIES ARE TURNING TO DATA PROCESSING COMPANIES FOR HELP HOWEVER NOT EVERY FORAY INTO OUTSOURCING AS THE PRACTICE IS CALLED IS A SUCCESS CONSIDER NEW JERSEY'S EXPERIENCE WITH ELECTRONIC DATA SYSTEMS DALLAS A GENERAL MOTORS CORP UNIT THE STATE HIRED A FEW YEARS AGO TO HELP RUN ITS INSURANCE PROGRAM FOR HIGHRISK DRIVERS THE STATE IS NOW WRAPPING UP AN INVESTIGATION INTO EDS'S WORK HOPING TO RECOVER MONEY IT SUSPECTS EDS WASTED BY OVERPAYING CLAIMS AND NOT COLLECTING PREMIUMS A LOOK AT HOW EDS GOT INTO THE PREDICAMENT SHOWS THAT OUTSOURCING HAS ITS LIMITATIONS EVERYTHING THAT COULD GO WRONG DID SAYS JAMES POULOS WHO WORKED FOR EDS AS A CONSULTANT POLICYHOLDERS WOULD AGREE THEY DELUGED STATE OFFICIALS WITH AN ASTONISHING NUMBER OF FORMAL COMPLAINTS ABOUT POOR SERVICE FILING ONE COMPLAINT FOR EVERY 68 CARS EDS HANDLED COMPARED WITH ONE IN 4000 FOR ESTABLISHED INSURERS EDS OFFICIALS DENY THAT THE COMPANY OWES NEW JERSEY MONEY IN FACT THEY MAKE THE OPPOSITE ARGUMENT SAYING THE STATE OWES EDS MONEY FOR BREAKING ITS CONTRACT IN A SUPERLATIVE WAY WE APPLIED A HUGE AMOUNT OF RESOURCES AND FULFILLED OUR OBLIGATIONS UNDER THE CONTRACT SAYS MARK MAYO THE EDS EXECUTIVE WHO RAN THE OPERATION WHILE MOST OF EDS'S VENTURES SUCCEED THE COMPANY'S REVENUE HIT A RECORD 815 BILLION LAST YEAR THE NEW JERSEY OPERATION FLOPPED FOR WHAT EDS SAYS WERE EVENTS BEYOND ITS CONTROL OTHERS HOWEVER BLAME THE COMPANY'S LACK OF EXPERIENCE WITH CAR INSURANCE EDS IS NOW COMPLETELY OUT OF THE CARINSURANCE BUSINESS IN 1987 EDS WON A CONTRACT TO MANAGE POLICIES FOR 425000 NEW JERSEY MOTORISTS NEARLY AS MANY AS THE STATE'S BIGGEST CAR INSURER SEARS ROEBUCK & CO'S ALLSTATE INSURANCE CO THE DEAL PART OF AN EXPERIMENT INTO WHETHER COMPUTER COMPANIES COULD MANAGE THE PROGRAM BETTER THAN INSURERS WAS INITIALLY VALUED AT 750 MILLION OVER SEVEN YEARS HAVING NO EXPERIENCE IN CAR INSURANCE EDS HAD TO BUILD AN INSURANCE COMPANY FROM SCRATCH AND BECAUSE EDS LACKED KNOWHOW IN SETTLING CLAIMS IT HIRED OTHER COMPANIES TO HELP EAGER TO GET SOME ASSIGNMENTS FROM EDS TOENSMEIER ADJUSTMENT SERVICE A PITTSBURGH ADJUSTMENT COMPANY WENT SO FAR AS TO DROP ALL RELATIONS WITH EDS COMPETITORS WITH ALL THE POTENTIAL WE WOULD HAVE BEEN REALLY FOOLISH NOT TO GO WITH THEM SAYS TOENSMEIER'S PRESIDENT DONALD MAURY BUT EDS BADLY UNDERESTIMATED THE WORKLOAD AFTER OPENING ITS INSURANCE OPERATION IN THE SPRING OF 1989 IT FOUND ITSELF OVERWHELMED COURT PAPERS AND INTERVIEWS DESCRIBE PHONES RINGING NONSTOP PAPERS PILING UP AND CONFUSION MOUNTING ABOUT HOW TO CATCH UP WITH CRUSHING VOLUME ALL WE DID WAS REACT SAYS THOMAS NEWALL WHO WORKED FOR ONE OF THE CLAIMS COMPANIES HIRED BY EDS YOU WOULD PUT DOWN A PHONE AND PICK UP ANOTHER ONE ONE OVERSIGHT EDS HIRED TOO FEW PEOPLE CLAIMS REPRESENTATIVE JOSINA FREEDMAN SAYS SHE NOT ONLY HAD TO NEGOTIATE PERSONAL INJURY CLAIMS BUT AFTER REACHING A SETTLEMENT SHE ALSO HAD TO PERSONALLY WRITE CHECKS TO DOCTORS AND HOSPITALS THAT'S A TASK OTHER INSURERS WOULD HAVE ASSIGNED TO SUPPORT UNITS SOME EMPLOYEES FOUND THE FRUSTRATIONS UNBEARABLE I WAS A MENTAL CASE SAYS JOHN BARTLETT AN EDS MANAGER WHO EVENTUALLY QUIT IT WAS GETTING TO MY HEALTH FOR POLICYHOLDERS THE INTERNAL PROBLEMS MEANT INFURIATING DELAYS AFTER FRANCIS STROGLIO HAD A CAR ACCIDENT SHE TOOK HER CLAIM TO HER INSURANCE AGENT THOMAS THOMSEN WITH MRS STROGLIO STANDING OVER HIM SHOWERING HIM WITH TEARS AND CURSES MR THOMSEN SPENT PARTS OF SEVERAL WEEKS TRYING TO SETTLE WITH EDS OFTEN HE COULDN'T GET TOUGH ON THE PHONE MONTHS LATER EDS SETTLED THE CLAIM POOR MR THOMSEN SAYS A CONTRITE MRS STROGLIO HE NEVER GOT ANY PEACE FROM ME OTHER ANGRY POLICYHOLDERS THREATENED TO THROW BRICKS THROUGH MR THOMSEN'S WINDOW PLAGUED BY STRESS MR THOMSEN BEGAN LOSING SLEEP AND TAKING TRANQUILIZERS CHARLES BRYANT OF NEPTUNE CITY NJ STARTED A BUSINESS WITH HIS BROTHER JAMES THAT HELPED POLICYHOLDERS GET RESULTS FROM EDS JAMES AN EXMARINE WON THE ATTENTION OF EDS OFFICIALS BY CALLING EDS CHAIRMAN LES ALBERTHAL IN DALLAS ALTHOUGH HE NEVER MANAGED TO SPEAK TO MR ALBERTHAL HE SUCCEEDED IN RACKING UP AN IMPRESSIVE RECORD SETTLING CLAIMS CREDITORS ALSO FOUND EDS FRUSTRATING WITH THE APPROACH OF CHRISTMAS 1989 CAR REPAIRMAN TIMOTHY TENNIS DECIDED TO GET TOUGH WITH EDS WHICH OWED HIM 30000 IRRITATED BY THE COMPANY'S UNFULFILLED PROMISES TO PAY HE BACKED A TRUCK AGAINST THE FRONT DOOR OF EDS'S NEW JERSEY HEADQUARTERS ENRAGED HE STORMED THROUGH THE DOOR AND THREATENED TO DRIVE AWAY WITH ALL THE COMPANY'S COMPUTERS UNLESS EDS PAID HIM IMMEDIATELY AFTER MR TENNIS MARCHED INTO THE COMPUTER ROOM AN ACCOUNTANT SCURRIED OVER TO WRITE HIS CHECK I WAS READY TO CHOKE SOMEONE MR TENNIS RECALLS BY THE SPRING OF 1990 NEW JERSEY INSURANCE COMMISSIONER SAMUEL FORTUNATO ORDERED HIS OWN AUDITS TO LEARN JUST HOW BAD THE SITUATION WAS THE RESULTS WERE SHOCKING AUDITS REPORTEDLY FOUND EDS FAILED TO COLLECT PREMIUMS FROM 35000 CUSTOMERS FOR INSURANCE COSTING THE STATE BETWEEN 25 MILLION AND 50 MILLION THEY ALSO FOUND EDS WAS SIX MONTHS BEHIND IN PAYING CERTAIN CLAIMS UNDER PRESSURE FROM THE STATE THE COMPANY QUIT THE PROGRAM IN SEPTEMBER 1990 MR MAYO OF EDS SAYS THE AUDITS EXAGGERATED THE PROBLEMS AN EDS SPOKESMAN ADMITS THE COMPANY FAILED TO COLLECT PREMIUMS FROM SOME POLICYHOLDERS BUT DENIED THE SHORTAGE WAS ANYWHERE NEAR 25 MILLION MR MAYO BLAMES POLITICS FOR MUCH OF HIS COMPANY'S PROBLEMS HE SAYS THAT FOLLOWING THE ELECTION OF GOV JIM FLORIO IN THE FALL OF 1989 IT BECAME IMPOSSIBLE TO DO BUSINESS IN THE STATE MR FLORIO HAD CAMPAIGNED ON ABOLISHING THE BAD DRIVER INSURANCE PROGRAM MAKING IT DIFFICULT FOR EDS TO RECRUIT QUALIFIED PERSONNEL MR MAYO SAYS FEW PEOPLE WANTED TO WORK FOR AN OPERATION THAT WOULD PROBABLY BE IN BUSINESS FOR ONLY A SHORT PERIOD HE SAYS THE STATE IS AGGRESSIVELY PURSUING ITS INVESTIGATION INTO THE COMPANY ATTORNEY JOHN FROST WHO IS SPEARHEADING THE PROBE SAID ROUGH DRAFTS OF A NEW SET OF AUDITS NEEDED TO BUILD A CLAIM AGAINST EDS HAVE ALREADY BEEN COMPLETED HE SAYS HE HOPES TO REACH A SETTLEMENT WITH EDS OR BRING A LAWSUIT SOON IT'S A HIGH PRIORITY MR FROST SAYS 9303260165 930326 ITALIAN SCANDAL MAY HINDER SELLOFF PLAN CORRUPTION FEARS COULD KEEP AWAY MANY INVESTORS BY MICHAEL C BERGMEIJER SPECIAL TO THE WALL STREET JOURNAL MILAN ITALY'S MUSHROOMING CORRUPTION SCANDAL MAY TURN INTO A MAJOR OBSTACLE FOR THE GOVERNMENT'S AMBITIOUS PRIVATIZATION PROGRAM INTERNATIONAL MERCHANT BANKERS SAY THEY WARN THAT INVESTORS MAY BE WARY OF BUYING INTO COMPANIES THAT COULD BE INFESTED BY CORRUPTION AND FACE YEARS OF LITIGATION OVER THE REPAYMENT OF BRIBES MOREOVER THE REPLACEMENT OF POLITICALLY APPOINTED EXECUTIVES SEVERAL OF WHOM ARE CURRENTLY IN JAIL WITH A NEW GENERATION OF INDEPENDENT MANAGERS IS LIKELY TO DELAY THE GOVERNMENT'S SCHEDULE TO SELL 51 TRILLION LIRE 323 BILLION OF ASSETS IN THE NEXT THREE TO FOUR YEARS THE CORRUPTION SCANDAL CERTAINLY DOESN'T HELP IF ANYTHING IT MAKES IT MORE DIFFICULT SAYS FELIX ROHATYN A PARTNER OF LAZARD FRERES IN NEW YORK AN ADVISER ON PART OF THE PRIVATIZATION PLAN BUT THE ULTIMATE RESULT COULD BE BETTER HE ADDS BECAUSE ALL ASSET SALES WILL HAVE TO BE CLEAR AND CLEAN AND TRANSPARENT THEY CAN'T CUT CORNERS ANYMORE THE NECESSARY CHANGES IN MANAGEMENT AND CORPORATE CULTURE WILL TAKE ADDITIONAL TIME FOR THE ASSET SALES TO GET UNDER WAY HE PREDICTS INVESTORS MUST BE ASSURED THAT THE SYSTEM OF POLITICAL INFLUENCE HAS BEEN ERADICATED HE SAYS THE ROT HAS EMERGED THROUGHOUT ALL SECTORS OF STATE INDUSTRY INCLUDING SOME OF THE PRIME CANDIDATES FOR PRIVATIZATION THE VAST CORRUPTION SCANDAL HAS SEEN MORE THAN 1000 PEOPLE ARRESTED IN THE PAST 13 MONTHS INCLUDING SCORES OF LEADING POLITICIANS AND TOP BUSINESSMEN IN STATE AND PRIVATE INDUSTRY MANAGEMENT OF STATEOWNED ENTE NAZIONALE IDROCARBURI KNOWN AS ENI HAS BEEN DECAPITATED AS ITS FORMER CHAIRMAN GABRIELE CAGLIARI REMAINS IN JAIL ALONG WITH OTHER TOP EXECUTIVES OF ONE OF THE WORLD'S LARGEST OIL COMPANIES ENI IS SCHEDULED TO PRESENT A REPORT ON THE PLANNED STOCK FLOTATION OF ITS CRUDE OIL EXPLORATION AND PRODUCTION ARM AGIP SPA AND ITS NATURAL GAS SUBSIDIARY SNAM SPA BOTH COMPANIES' CHAIRMEN ARE STILL IN JAIL ON CHARGES OF FALSIFYING ACCOUNTS AND ILLEGAL PAYMENTS TO POLITICAL PARTIES THE GOVERNMENT HAS ALSO CALLED FOR THE POSSIBLE PARTIAL PRIVATIZATION OF SCANDALRIDDEN ENI ITSELF LIKEWISE SEVERAL BOARD MEMBERS OF THE STATE ELECTRIC UTILITY ENTE NAZIONALE PER L'ENERGIA ELETTRICA ARE UNDER INVESTIGATION FOR ALLEGEDLY SEEKING KICKBACKS ON BEHALF OF POLITICAL PARTIES IN EXCHANGE FOR CONTRACTS FOR THE CONSTRUCTION OF ENEL POWER PLANTS ENEL WAS SCHEDULED TO BE PRIVATIZED IN 1994 BUT BANKERS FIND THIS OVERLY OPTIMISTIC I THINK AS A COUNTRY ITALY WILL HAVE TO TAKE FIVE STEPS BACK AND THEN MOVE FORWARD SAYS A MILANBASED EXECUTIVE FOR A US INVESTMENT BANK THE CONFUSION RIGHT NOW IS TOTAL WHILE THE CORRUPTION SCANDAL IS A SIGN OF CHANGE THE EXECUTIVE PREDICTS THE GOVERNMENT OF PREMIER GIULIANO AMATO WILL BE HARDPRESSED TO MEET ITS TARGET TO SELL SEVEN TRILLION LIRE IN ASSETS THIS YEAR ALONE AT BEST HE RECKONS THE GOVERNMENT WILL MANAGE TO SELL BY YEAREND PARTS OF THE FOOD AND RETAIL GROUP SME SPA AND COMPLETE THE LONGPLANNED SALE OF THE TREASURY'S 50 STAKE IN ISTITUTO MOBILIARE ITALIANO A LEADING MERCHANT BANK AND FINANCIAL SERVICES GROUP THE CORRUPTION SCANDAL HAS ALREADY DELAYED THE SALE OF ENI'S ENGINEERING UNIT NUOVO PIGNONE SPA FIVE COMPANIES HAVE MADE PRELIMINARY OFFERS FOR NUOVO PIGNONE ON THE BASIS OF 1991 ACCOUNTS BUT ENI SENT A LETTER EARLIER THIS WEEK THAT THE COMPANY'S 1992 ACCOUNTS CAN'T BE APPROVED UNTIL LATE APRIL BECAUSE ENI'S BOARD LACKS A QUORUM AFTER MR CAGLIARI RESIGNED FOLLOWING HIS ARREST BUT THE PROBLEM FOR ITALY THE US INVESTMENT BANKER SAYS IS BROADER THAN JUST THE CORRUPTION SCANDAL THE SCANDAL WILL SLOW DOWN THE PRIVATIZATION PROCESS AND REDUCE POTENTIAL DEMAND THE REAL ISSUE HOWEVER IS THE PROBLEM OF A COUNTRY WITHOUT A TRADITION OF INVESTOR RELATIONS HE SAYS SME'S PRIVATIZATION SCHEDULE IS ALSO HELD UP BECAUSE WORKERS HAVE OCCUPIED THE COMPANY'S HEADQUARTERS IN NAPLES THE OCCUPATION HAS MADE IT IMPOSSIBLE FOR MANAGEMENT TO COLLECT INFORMATION NEEDED BY THE 34 COMPANIES THAT HAVE SHOWN INTEREST IN SME'S FOOD PRODUCING UNITS THE WORKERS HAVE OCCUPIED THE COMPANY TO PROTEST ITS BREAKUP AND SUBSEQUENT PRIVATIZATION FEARING MASSIVE JOB CUTS CAN YOU IMAGINE NESTLE GOING DOWN TO NAPLES WITH THE POLICE TO PROTECT THEM ONE BANKER SAYS PEOPLE ARE NOT GOING TO BUY THAT HE BELIEVES THE GOVERNMENT WILL ALSO PUT SME'S SUPERMARKET CHAIN GS ON THE AUCTION BLOCK SO FAR IT HAS SAID IT WANTS TO SELL ONLY THE MANUFACTURING UNITS OF SME ANOTHER CASE IN POINT IS CREDITO ITALIANO MEANT AS THE GOVERNMENT'S SHOWCASE OF PRIVATIZATION POLICY BANKERS SAY THE RESTRICTIONS IMPOSED ON THE WAY IT WANTS TO DISPOSE OF CREDITO HAS MADE IT IMPOSSIBLE TO FIND A BUYER WILLING TO COUGH UP SOME SIX TRILLION LIRE FOR ITALY'S FIFTHLARGEST BANK THERE'S NO EVIDENCE THAT TRANSACTIONS HAVE FALLEN THROUGH BECAUSE OF THE PERCEIVED INCREASE IN POLITICAL RISK BECAUSE OF THE CORRUPTION SCANDAL BUT THERE CLEARLY IS A GROWING FEAR IN THE ITALIAN BUSINESS COMMUNITY THAT THE FALLOUT MAY BE FARREACHING EXECUTIVES OF AUTO MAKER FIAT SPA HAVE BEEN QUOTED AS SAYING THEY'RE WORRIED ITALY'S TARNISHED REPUTATION WILL SPILL OVER ONTO THE COMPANY'S PRODUCTS WITH A POSSIBLY NEGATIVE EFFECT ON FIAT'S SALES ABROAD SAYS ONE EXECUTIVE OF ENICHEM SPA AN ENI PETROCHEMICAL UNIT INVOLVED IN NEGOTIATIONS WITH BRITISH PETROLEUM PLC ON A PLANNED POLYSTYRENE JOINT VENTURE TALKS ARE STILL GOING ON AND THEY MAY STILL GO SOMEWHERE BUT MY FEELING IS THAT BP IS JUST WAITING ON THE SIDELINES TO SEE WHAT'S GOING TO HAPPEN IN ITALY 9303260163 930326 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN STEEL PRODUCTION TOTALED 279842 METRIC TONS IN THE WEEK ENDED SATURDAY A 13 INCREASE FROM 276275 TONS THE PREVIOUS WEEK AND A 12 BOOST FROM 276527 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 3050684 TONS A 36 INCREASE FROM 2945545 TONS A YEAR EARLIER 9303260162 930326 SOUTH AFRICA'S TRADE SURPLUS JOHANNESBURG SOUTH AFRICA'S TRADE SURPLUS NARROWED TO 133 BILLION RAND 4189 MILLION IN FEBRUARY 1993 FROM A SURPLUS OF 194 BILLION RAND A YEAR EARLIER THE GOVERNMENT'S CUSTOMS AND EXCISE OFFICE SAID THE FIGURES AREN'T SEASONALLY ADJUSTED BUT EXPORT AND IMPORT DATA ARE ADJUSTED TO BRING THEM IN LINE WITH THE REQUIREMENTS FOR COMPILING THE NATION'S BALANCE OF PAYMENTS EXPORTS FOR FEBRUARY TOTALED 537 BILLION RAND 169 BILLION COMPARED WITH 563 BILLION RAND A YEAR EARLIER WHILE IMPORTS WERE 404 BILLION RAND COMPARED WITH 369 BILLION RAND IN FEBRUARY 1992 FEBRUARY'S SURPLUS WAS HIGHER THAN THE SURPLUS OF 876 MILLION RAND IN JANUARY 9303260161 930326 MARK IV AMENDS TENDER OFFER AMHERST NY MARK IV INDUSTRIES INC SAID IT AMENDED ITS TENDER OFFER FOR 1902 MILLION OUTSTANDING PRINCIPAL AMOUNT OF ITS 13375 SUBORDINATED DEBENTURES DUE MARCH 15 1999 THE MAKER OF TECHNICAL ENGINEERED AND TRANSPORTATION PRODUCTS AND SYSTEMS RAISED THE PRICE TO 113750 PER 1000 PRINCIPAL AMOUNT FROM 113250 THE OFFER EXPIRES APRIL 6 AS OF TUESDAY 143 MILLION IN DEBENTURES HAD BEEN TENDERED 9303260160 930303 RULE OF LAW LIKE JUSTICE JURY SELECTION SHOULD BE COLORBLIND BY ELIZABETH MCCAUGHEY THE ACTING ATTORNEY GENERAL AND 26 MEMBERS OF CONGRESS SEEM TO BELIEVE THAT ONLY BLACK JURORS WILL PROVIDE JUSTICE FOR BLACK DEFENDANTS LAST WEEK THEY CALLED FOR THE DISMISSAL OF A JURY COMPOSED OF 11 WHITES AND ONE BLACK WHO HAD BEEN SELECTED FOR THE FEDERAL RETRIAL OF REP HAROLD FORD A BLACK TENNESSEE DEMOCRAT CHARGED WITH TAKING POLITICAL PAYOFFS IN THE WAKE OF A REBUKE FROM A FEDERAL JUDGE AND THE RESIGNATION OF A US ATTORNEY JUSTICE REVERSED ITS CALL FOR A NEW JURY BUT THE DAMAGING RACIAL STEREOTYPES BEHIND THE CALL LINGER ON WHEN MR FORD'S FIRST TRIAL ENDED IN DEADLOCK DISTRICT COURT JUDGE ODELL HORTON CALLED FOR A RETRIAL BECAUSE OF JUROR MISCONDUCT IT APPEARED TO JUDGE HORTON WHO IS BLACK THAT AT LEAST TWO JURORS HAD BEEN DETERMINED TO ACQUIT THE CONGRESSMAN REGARDLESS OF THE EVIDENCE HE CALLED FOR A JURY ASSEMBLED FROM THE NEARBY JACKSON TENN AREA OUTSIDE MR FORD'S DISTRICT TO ENSURE IMPARTIALITY TWO WEEKS AGO THE CONGRESSIONAL BLACK CAUCUS PROTESTED TO JUSTICE THAT THE NEW FORD JURY WAS RACIALLY PREJUDICIAL AND WARNED THAT ITS VERDICT WOULD AMOUNT TO A TRAVESTY OF JUSTICE THE CAUCUS POINTED ONLY TO THE JURY'S RACIAL COMPOSITION THE CONGRESSMEN MUST HAVE BEEN THINKING IN RACIAL STEREOTYPES THAT WHITE JURORS WILL NOT BE FAIR TO A BLACK DEFENDANT IT APPEARS THAT ACTING ATTORNEY GENERAL STUART GERSON AGREED ALTHOUGH HE CALLED THE GOVERNMENT'S CASE AGAINST MR FORD FACTUALLY OVERWHELMING HE ACCEDED TO MR FORD'S ARGUMENT THAT HE WAS BEING DEPRIVED OF A JURY OF HIS PEERS CITING THE DEMOGRAPHIC DIFFERENCES BETWEEN JACKSON 20 BLACK AND MEMPHIS 52 BLACK MR GERSON SUPPORTED MR FORD'S REQUEST THAT A NEW JURY BE DRAWN FROM MEMPHIS THE THINKING BEHIND THIS REQUEST OUTRAGED JUDGE HORTON'S SUCCESSOR JUDGE JEROME TURNER WHO FLATLY REFUSED TO CALL A NEW JURY JUDGE TURNER DECLARED IT A SAD DAY WHEN THE GOVERNMENT GIVES IN TO A DEMAND THAT A JURY OF THE UNITED STATES MUST BE SELECTED BY RACE THAT THEIR CONCEPT OF FAIRNESS MEANS PERCENTAGES THE FORD CASE IS ONLY THE LATEST EXAMPLE OF A DEMAND NOW FREQUENTLY HEARD THAT A JURY MUST BE DRAWN FROM A COMMUNITY RACIALLY AND ETHNICALLY THE SAME AS THE COMMUNITY WHERE THE CRIME OCCURRED THIS IS A RACIST ATTITUDE THAT IS TAKING US A STEP TOWARD AN APARTHEID LEGAL SYSTEM UNFORTUNATELY IT IS PERILOUSLY CLOSE TO BECOMING LAW IN SEVERAL STATES NEW YORK NEW JERSEY CALIFORNIA AND FLORIDA ARE CONSIDERING LEGISLATION THAT STATE JUDGES BE GUIDED BY RACE WHEN RELOCATING TRIALS USUALLY WHEN JUDGES MUST MOVE A TRIAL THEY ARE GUIDED BY SUCH NEUTRAL FACTORS AS TRAVEL TIME FOR JURORS AND WITNESSES AND WHERE COURTHOUSE SPACE IS AVAILABLE FOR A SPEEDY TRIAL THE SUPREME COURT HAS RULED REPEATEDLY THAT NO GROUP MAY BE SYSTEMATICALLY EXCLUDED FROM THE POOL OF POTENTIAL JURORS THE COURT HAS ALSO MADE CLEAR THAT NO DEFENDANT IS GUARANTEED JURORS OF HIS OWN RACE MOREOVER IN GEORGIA V MCCOLLUM 1992 THE COURT DECLARED THAT RACIAL STEREOTYPES ABOUT BLACK AND WHITE JURORS CANNOT BE ALLOWED TO GUIDE ANY LEGAL PROCEEDINGS THE COURT BARRED DEFENSE ATTORNEYS FROM USING PEREMPTORY STRIKES TO ELIMINATE JURORS OF A RACE DIFFERENT FROM THE DEFENDANT'S ON THE ASSUMPTION THAT THEY WOULD BE UNFAVORABLY BIASED ALLOWING RACIAL STEREOTYPES ABOUT BLACK OR WHITE JURORS JUSTICE HARRY BLACKMUN WROTE IN THE MAJORITY DECISION GIVES DISCRIMINATION THE SANCTION OF LAW IN THE FORD CASE JUDGE TURNER ECHOES THAT PRINCIPLE IT IS UNLAWFUL TO EXCLUDE JURORS BECAUSE OF THEIR RACE AND THAT IS WHAT THIS COURT IS BEING ASKED TO DO IN FLORIDA TOO JUDGES ARE BEING PRESSURED TO CONSIDER RACE THE ISSUE IS WHERE TO RETRY WILLIAM LOZANO A MIAMI POLICE OFFICER CHARGED WITH MANSLAUGHTER IN THE SHOOTING OF A BLACK MOTORCYCLIST IN 1989 THE STATE COURT OF APPEALS ORDERED A RETRIAL OUTSIDE MIAMI ON THE GROUNDS THAT THE MIAMI JURY THAT CONVICTED HIM HAD FEARED AN ACQUITTAL WOULD SPARK RIOTS THE RETRIAL WAS MOVED INITIALLY TO ORLANDO BUT BLACK GROUPS OBJECTED BECAUSE THE AREA'S POPULATION IS ONLY 10 BLACK COMPARED WITH MIAMI'S 20 SUBSEQUENTLY THE RETRIAL WAS MOVED TO TALLAHASSEE WHICH ALSO IS 20 BLACK MAKING RACE A FACTOR IN RELOCATING TRIALS WILL BALKANIZE THE LEGAL SYSTEM A NOTE IN THE JANUARY HARVARD LAW REVIEW ARGUES THAT MOVING A TRIAL FROM A BLACK URBAN NEIGHBORHOOD TO A WHITE SUBURBAN ONE MAKES IT IMPOSSIBLE TO HAVE MEMBERS OF THE AGGRIEVED COMMUNITY APPLY THEIR VALUES TO THE PROCEEDINGS EVERY CLASS AND EVERY RACE HAS ITS OWN NORMS AND THE NORMS OF THE AGGRIEVED COMMUNITY SHOULD PREVAIL TO THE CONTRARY A JURY'S JOB IS NOT TO APPLY ITS OWN NORMS BUT TO HEAR EVIDENCE STRIVE TO RECONSTRUCT THE TRUTH AND FOLLOW THE COURT'S INSTRUCTIONS ABOUT THE LAW THAT IS WHY COURTS CONSISTENTLY HAVE REFUSED TO OVERTURN VERDICTS ON THE BASIS THAT THE CASE WAS TRIED IN A COMMUNITY MARKEDLY DIFFERENT FROM THE ONE IN WHICH THE CRIME OCCURRED THE RARE EXCEPTION PROVES THE POINT CONSIDER THE OVERTURNED CONVICTION AVARADO V STATE OF ALASKA 1971 OF AN ALEUT TRIED FOR RAPE BY AN ANCHORAGE JURY THE ALLEGED CRIME OCCURRED IN THE DEFENDANT'S VILLAGE 450 MILES FROM ANCHORAGE IN AN AREA LACKING ANY CONTACT BY ROAD TELEPHONE OR TV WITH THE MODERN LIFE AND LAWS OF ALASKA THE APPEALS COURT HELD THAT THE DEFENDANT HAD BEEN TRIED BY A JURY FROM A DIFFERENT CULTURE RATHER THAN BY HIS PEERS ARE WE PREPARED TO SAY THAT ACROSS THE US A CULTURAL CHASM OF THIS MAGNITUDE SEPARATES CITY FROM SUBURB LOS ANGELES FROM SIMI VALLEY ARE WE READY TO SAY THAT AFRICANAMERICANS HISPANICAMERICANS AND AMERICANS OF ALL OTHER ETHNIC HERITAGES ARE NOT BOUND TO OBEY THE SAME LAWS AND CANNOT APPLY THOSE LAWS AS JURORS THE INEVITABLE OUTCOME OF SUCH RACIAL AND ETHNIC PARTICULARISM IS VISIBLE IN SOUTH AFRICA WHERE A JURY SYSTEM IS NOT POSSIBLE THERE RACIAL LOYALTIES OVERRIDE ANY COMMITMENT TO IMPARTIAL FACTFINDING AND A UNIFORM APPLICATION OF THE LAWS ARE WE PREPARED TO MOVE OUR OWN SOCIETY IN THAT DIRECTION THE PROPOSALS IN OUR OWN STATE LEGISLATURES TO MAKE RACE A FACTOR IN WHERE TO RELOCATE TRIALS LEGITIMATE JUROR BIAS AND ENSHRINE IT IN THE LAW MS MCCAUGHEY IS A FELLOW AT THE MANHATTAN INSTITUTE SEE RELATED LETTER LETTERS TO THE EDITOR RACIAL COMPOSITION OFTEN VITAL IN JURIES WSJ MARCH 25 1993 9303030021 9303260159 930326 WHO'S NEWS GREYHOUND LINES INC GREYHOUND LINES INC DALLAS J MICHAEL DOYLE 44 YEARS OLD WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT OF OPERATIONS AT THIS BUS COMPANY HE WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER AND CHIEF ADMINISTRATIVE OFFICER THE COMPANY SAID IT HASN'T YET NAMED ANYONE TO FILL THOSE POSTS 9303260158 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT MAKING MUSIC WE ARE THE WORLD WITH THE US SHARE OF RECORD SALES SHRINKING MUSIC COMPANIES SEE THE WHOLE WORLD AS THEIR MARKET BY MEG COX ONCE IT WAS DRUGS THAT GAVE ROCK STARS THEIR WASTED AND RUMPLED LOOK THESE DAYS THE CAUSE IS MORE LIKELY JET LAG CONSIDER BON JOVI TO PROMOTE THE AMERICAN ROCK BAND'S LATEST ALBUM KEEP THE FAITH LEAD SINGER JON BON JOVI VIRTUALLY CIRCLED THE GLOBE LAST FALL WITH AND WITHOUT HIS BAND HE HIT 18 COUNTRIES IN FIVE WEEKS SQUEEZING IN TALK SHOWS IN STOCKHOLM THE AUSTRALIAN MUSIC AWARDS SHOW IN BRISBANE AND A DAY IN JAKARTA PACKED WITH 10 INTERVIEWS THE BAND RECORDED ONE EXTRA SONG FOR THE EUROPEAN ALBUM AND TWO EXTRA TRACKS FOR THE ASIAN MARKET SIX MONTHS LATER KEEP THE FAITH HAS SOLD 41 MILLION COPIES WORLDWIDE 60 OF THEM OUTSIDE THE US THE BAND'S PREVIOUS ALBUMS REGISTERED ONLY ABOUT 40 FOREIGN SALES SOME CYNICS MIGHT SAY THAT'S PROOF OF THE GROUP'S WANING POPULARITY BUT IN FACT THE RATIO REPRESENTS THE NEW REALITY OF THE RECORD BUSINESS FOR EXAMPLE MICHAEL JACKSON'S LATEST ALBUM DANGEROUS HAS SOLD 15 MILLION COPIES TWOTHIRDS OF THEM OUTSIDE THIS COUNTRY THE SINGER PROMOTED THE ALBUM WITH CONCERTS IN MORE THAN 50 FOREIGN CITIES AND MAY SKIP A US TOUR ALTOGETHER METALLICA A HEAVYMETAL BAND WILL WIND UP A TWOYEAR TOUR IN JULY THAT INCLUDED ASIA LATIN AMERICA SCANDINAVIA AND THREE SEPARATE TRIPS TO EUROPE THE LAST STRETCH IS BEING CALLED THE NOWHERE ELSE TO ROAM TOUR TWENTY YEARS AGO THE US MARKET REPRESENTED HALF OF WORLD RECORD SALES TODAY IT IS ONLY 30 OF THE MARKET AND STILL SHRINKING IN RECENT YEARS WHILE MUSIC SALES HAVE BEEN STAGNANT OR FALLING HERE AND IN EUROPE SALES ARE SURGING 20 AND MORE ANNUALLY IN ASIA AND PARTS OF SOUTH AMERICA WITH THE REALIZATION DAWNING THAT 70 OF THE 25 BILLION WORLD MARKET IS ELSEWHERE US RECORD EXECUTIVES NOW MARKET THEIR MUSIC TO THE WHOLE WORLD AT ONCE AMERICANS WERE SATISFIED FOR YEARS WITH THEIR HUGE DOMESTIC MARKET BUT IT HAS FINALLY SUNK IN THAT THE MAJORITY OF SALES ARE OUTSIDE SAYS RUDI GASSNER INTERNATIONAL HEAD OF GERMANY'S BERTELSMANN MUSIC GROUP WHILE THE US IS STILL THE BIGGEST SOURCE OF REPERTOIRE US RECORDS ACCOUNT FOR BETWEEN 50 AND 60 OF WORLD MUSIC SALES EVEN THAT DOMINATION IS ERODING FIVE OF THE TOP SIX RECORD COMPANIES ARE OWNED BY FOREIGN PARENTS AND THERE IS A NEW DETERMINATION BY THE RECORD COMPANIES TO REVERSE TRADITION AND BREAK MORE ASIAN AND EUROPEAN STARS IN THE HUGE AMERICAN MARKET THESE COMPANIES ALSO RECOGNIZE THE IMPORTANCE OF DEVELOPING LOCAL ARTISTS WORLDWIDE IN JAPAN THE SECONDBIGGEST MUSIC MARKET IN THE WORLD 75 OF SALES COME FROM NATIVE ARTISTS SINGING IN JAPANESE MUSIC IN FACT INCREASINGLY COMES FROM ANYWHERE AND TRAVELS EVERYWHERE THE JAPANESE LOVE SWEDISH GUITARIST YNGWIE MALMSTEEN AND THANKS TO MTV ASIA THE HOT ALBUM IN INDIA AT THE MOMENT IS BY CHEB KHALED SINGING IN HIS NATIVE ALGERIAN MTV BRAZIL RECENTLY HELD A SEATTLE GRUNGE CONTEST THE WINNER GOT A TRIP TO SEATTLE WASH HOME OF THE LATEST IN HIP ANGRY ROCKANDROLL ALL THE TRENDS INCLUDING CONSOLIDATION OF THE RECORD BUSINESS INTO SIX MAJOR COMPANIES WITH MASSIVE DISTRIBUTION MADE IT A FAIT ACCOMPLI' THAT ROCK AND POP WOULD TRAVEL EVERYWHERE THIS IS NO LONGER A BUSINESS OF SMALL ENTREPRENEURS SAYS TOM FRESTON PRESIDENT OF MTV WHICH IS NOW BEAMED INTO 80 COUNTRIES YOU COULD ARGUE THAT THIS IS A BUSINESS EVEN MORE GLOBAL THAN MOVIES BECAUSE MUSIC IS MORE PERVASIVE THAN ANY OTHER FORM OF CULTURE SIMULTANEOUS WORLDWIDE RELEASE OF ALBUMS NOW COMMONPLACE WAS ALL BUT UNKNOWN FIVE YEARS AGO SAYS JEANFRANCOIS CECILLON HEAD OF EMI MUSIC'S UNITED KINGDOM TERRITORY IN SOUTH AMERICA A RECORD WOULD COME OUT MONTHS LATER THAN IN THE STATES HE SAYS THEN MAYBE YOU WOULD SHIP SOME COPIES TO ASIA BUT THERE WASN'T ANY MARKETING THE STAGE WAS SET FOR GLOBALIZATION IN THE '80S A TIME OF CORPORATE CONSOLIDATION WORLDWIDE AND BOOMING GROWTH IN MUSIC SALES FED BY THE PROLIFERATION OF COMPACT DISKS THE STRONGEST EUROPEAN RECORD COMPANIES EMI AND POLYGRAM BOUGHT UP US LABELS AMERICAN POWERHOUSE WARNER MUSIC A UNIT OF TIME WARNER INC FILLED IN ITS MUSICAL MAP WITH LABELS ALL OVER EUROPE AND ASIA CBS WAS BOUGHT BY SONY CORP NOW FOUR GLOBAL GIANTS DOMINATE THE INDUSTRY SONY WARNER THORN EMI PLC'S EMI MUSIC AND POLYGRAM WHICH IS 80 OWNED BY DUTCH ELECTRONICS GIANT PHILIPS ELECTRONICS NV THE OTHER TWO COMPANIES OF SIGNIFICANT SIZE MCA RECORDS OWNED BY JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL AND BERTELSMANN MUSIC GROUP ARE WIDELY VIEWED AS ALSORANS BECAUSE THEY LACK COMPLETE GLOBAL REACH THOUGH IT IS POWERFUL IN EUROPE BERTELSMANN IS A WEAK PLAYER IN THE US ITS ARISTA LABEL IS HOT AT THE MOMENT WITH STARS LIKE WHITNEY HOUSTON BUT ITS RCA DIVISION IS SNIDELY CALLED RECORD CEMETERY OF AMERICA BY STRONGER RIVALS MCA IS A SERIOUS FORCE DOMESTICALLY BUT A COMPARATIVE NONENTITY ABROAD WHERE ITS RECORDS ARE DISTRIBUTED BY BERTELSMANN SOME ANALYSTS THINK IT'S ONLY A MATTER OF TIME BEFORE THE TWO COMBINE WITH EACH OTHER OR A STRONGER PLAYER BECAUSE THEY AREN'T COMPETITIVE ALONE THESE DAYS AS MUCH OF THE WORLD STRUGGLES WITH RECESSION GLOBAL MARKETING HAS BECOME SHEER ECONOMIC NECESSITY PETER MENSCH OF Q PRIME A NEW YORK MANAGEMENT COMPANY WHOSE CLIENTS INCLUDE ROCK BANDS METALLICA AND DEF LEPPARD RECALLS THAT ONLY A FEW YEARS AGO A MIDLEVEL WARNER EXECUTIVE TOLD HIM IT'S NICE TO SELL RECORDS OUTSIDE NORTH AMERICA BUT AS LONG AS I SELL MY THREE MILLION UNITS IN THE US AND RECOUP MY NUT THAT'S ALL I REALLY CARE ABOUT NOBODY IN THE RECORD BUSINESS TALKS LIKE THAT ANYMORE THERE IS A MUCH GREATER URGENCY IN THE LAST FEW YEARS TO MARKET GLOBALLY BECAUSE THE US MARKET IS SO MATURE AND BECAUSE IT COSTS SO MUCH TO INTRODUCE A NEW ACT IN THIS COUNTRY SAYS MEL ILBERMAN A VETERAN RECORD EXECUTIVE CURRENTLY RUNNING SONY MUSIC'S INTERNATIONAL ARM HE CONCEDES THERE WAS INITIAL RESISTANCE WITHIN THE COMPANY TO SIMULTANEOUS GLOBAL RELEASE BUT ADDS SUCCESS FINALLY CONVINCED PEOPLE FOR THE PAST THREE YEARS EMI MUSIC HAS HELD QUARTERLY PRIORITY MEETINGS AT WHICH ITS MAJOR TERRITORY HEADS MEET TO DRAW UP A LIST OF 10 GLOBAL PRIORITY ARTISTS EACH TERRITORY PRESENTS A MARKETING PLAN FOR THOSE ARTISTS AND ESTIMATES HOW MANY UNITS IT CAN SELL LOCALLY WE HAVE 8200 PEOPLE AT THIS COMPANY AND FOR THE NEXT 90 DAYS WE WANT THEM TO WAKE UP IN TAIWAN AUSTRALIA VENEZUELA AND EVERYWHERE ELSE THINKING I MUST BREAK JESUS JONES A BRITISH ROCK BAND' MR FIFIELD EXPLAINS ALSO ON THE CURRENT PRIORITY LIST CUBANBORN POP SINGER JON SECADA AND ARRESTED DEVELOPMENT AN ALTERNATIVE US RAP GROUP WITH A POSITIVE MESSAGE IN MOST CASES THE PRIORITY ACTS HAVE MADE A BIG SPLASH IN THEIR HOME COUNTRY OVER MONTHS OR YEARS BEFORE BEING MARKED FOR EXPORT BUT IN AT LEAST ONE CASE A 29YEAROLD BRITISH SINGER NAMED TASMIN ARCHER A WORLDWIDE RELEASE WAS PLANNED FROM THE START FOR HER APTLY NAMED FIRST ALBUM GREAT EXPECTATIONS WE TAKE NO PRISONERS ON THIS ONE THE ENTIRE COMPANY IS BEHIND IT SAYS MR CECILLON THE EMI UK EXECUTIVE RATHER THAN BREAK THE WHOLE RECORD IN ENGLAND AND THEN MOVE ON I BROKE THE FIRST SINGLE HERE THEN SENT HER TO DO PROMOTIONS IN THE US AND EUROPE MS ARCHER'S FIRST SINGLE SLEEPING SATELLITE WAS INDEED A POP HIT IN ENGLAND AND AFTER SHE PROMOTED THE SINGLE THROUGH INTERVIEWS ALL OVER EUROPE IT CLIMBED INTO THE TOP FIVE NEARLY EVERYWHERE SHE WENT MS ARCHER THEN FLEW TO NEW YORK TO FIRE UP ALL OF EMI'S STAFF THERE WITH AN INTIMATE PERFORMANCE AT AN UPTOWN REHEARSAL HALL NEXT STOP ASIA RECORD COMPANIES HAVE BECOME MUCH MORE SOPHISTICATED ABOUT ADAPTING THEIR MARKETING PLANS TO DIFFERENT COUNTRIES AND CULTURES JACKET ART AND VIDEOS ARE OFTEN ALTERED FROM MARKET TO MARKET AND EXTRA SONGS ARE ADDED FOR DIFFERENT TERRITORIES WE'VE CHANGED DOZENS OF VIDEOS FOR INTERNATIONAL MARKETS SAYS TOMMY MOTTOLA PRESIDENT OF SONY MUSIC SOME COUNTRIES WON'T ALLOW VIOLENCE IN A VIDEO AND OTHERS WON'T ACCEPT SHOTS OF THE ARTIST SMOKING A CIGARETTE FOR HEAVILY ANTICIPATED NEW ALBUMS BY BIG STARS MTV STAGES WHAT IT CALLS PLANETARY PREMIERES AIRING A NEW VIDEO WITHIN 24 HOURS IN ALL 80 COUNTRIES IT COVERS BUT EVEN THAT'S NOT ENOUGH TO BLANKET THE GLOBE MTV'S AUDIENCE AND INFLUENCE ARE STILL SMALL IN MANY COUNTRIES AND IT PREFERS HARDEDGED ROCK DANCE AND RAP MUSIC TO MELLOW POP SINGERS IN MANY MARKETS THERE ARE FAR MORE VISIBLE SHOWCASES FOR INTRODUCING NEW MUSIC IN GERMANY FOR EXAMPLE ONE TRIEDANDTRUE METHOD OF INTRODUCING ARTISTS IS ON POPULAR GAME SHOWS THAT PRESENT MUSICAL PERFORMANCES AS A SORT OF HALFTIME BREAK EMI CHOSE GERMAN GAME SHOW LOVE OR MONEY A VARIATION ON AMERICA'S DATING GAME AS A SHOWCASE FOR JON SECADA THE CUBANBORN POP SINGER ON THE COMPANY'S PRIORITY LIST HELMUT FEST HEAD OF THE GERMAN MARKET FOR EMI SAYS THAT 40 OF THE GERMAN POPULATION TUNES IN TO LOVE OR MONEY AND AFTER MR SECADA'S APPEARANCE HIS ALBUM SOLD 300000 COPIES AND ROSE TO THE TOP OF THE GERMAN CHARTS THE PRACTICE OF ADDING SONGS FOR FOREIGN MARKETS HAS A STRATEGIC PURPOSE COMPACT DISKS ARE CONSIDERABLY MORE EXPENSIVE IN ASIA AND EUROPE AND THE RECORD COMPANIES WANT TO SELL THE LOCAL HIGHERPRICED VERSION INSTEAD OF THE CHEAPER AMERICAN IMPORT THUS EVEN THE HOTTEST ALBUMS LIKE MICHAEL JACKSON'S DANGEROUS ARE OFTEN RELEASED QUIETLY DAYS OR EVEN WEEKS AHEAD IN FOREIGN MARKETS BY ADDING EXTRA TRACKS AND TACKING ON AN EXCLUSIVE FOR EUROPE STICKER RECORD LABELS TRY TO APPEAL TO LOCAL PRIDE SOMETIMES TAILORING THE ADDITIONAL CUTS TO A CERTAIN MARKET JAZZ SAXOPHONIST KENNY G AN ARTIST ON THE ARISTA LABEL RECENTLY ADAPTED TWO WELLKNOWN CLASSICAL CHINESE TUNES AS EXTRA TRACKS FOR HIS CD IN THE ASIAN MARKET MUSIC IS FLOWING ACROSS NATIONAL BORDERS IN PATTERNS IMPOSSIBLE TO PREDICT OR CONTROL EMI MUSIC WAS ASTONISHED WHEN A SPANISH ROCK BAND SINGING IN SPANISH CALLED HEROES DEL SILENCIO BECAME HOT IN GERMANY SELLING 200000 COPIES SONY'S MR ILBERMAN IS STILL CHUCKLING OVER DUR DUR D'ETRE BEBE A HIT SONG BY A FOURYEAROLD FRENCH BOY THAT HAS BECOME A POP HIT IN ITALY AS WELL THIS GLOBAL ERA IS ONE OF PROMISE BUT ALSO OF POTENTIAL CHAOS AND FINANCIAL DISASTER WE'VE DISCOVERED WE CAN SELL ALMOST ANY KIND OF MUSIC ALMOST ANYWHERE SAYS CHRIS ROBERTS A SENIOR INTERNATIONAL MARKETING EXECUTIVE WITH POLYGRAM IN NEW YORK THE HARD PART IS THE BUSINESS DECISION WHEN IS IT WORTH IT SWEDISH GUITARIST YNGWIE MALMSTEEN WHOSE MUSIC MR ROBERTS DESCRIBES AS GOTHIC ROCK BECAME VERY POPULAR IN JAPAN BUT POLYGRAM COULD NEVER QUITE BREAK HIM IN TO AMERICA EVEN AFTER A GRAMMY NOMINATION FOR BEST NEW ARTIST IN THE LATE '80S POLYGRAM EXECUTIVES DECIDED THAT CONTINUED EFFORTS ON MR MALMSTEEN'S BEHALF WEREN'T COSTEFFECTIVE BUT THEY MAY BE PROVED WRONG HE HAS SINCE BEEN PICKED UP BY TIME WARNER'S ELEKTRA LABEL IN NEW YORK COMPLICATING THE QUESTION ARE SUCH TANTALIZING BUT DIFFICULT DEVELOPING MARKETS AS EASTERN EUROPE AND LATIN AMERICA WHERE DEMAND FOR MUSIC IS BREATHTAKING BUT ILLEGAL COPYING IS RAMPANT EASTERN EUROPE IS EXCITING BUT CONBATTING PIRACY IS NO 560 ON THEIR LIST OF PRIORITIES SAYS ALAIN LEVY CHAIRMAN OF POLYGRAM CHINA IS A TREMENDOUS MARKET BUT IMPOSSIBLE TO DEAL WITH YOU'VE GOT TO OBTAIN PERMISSION FROM THE GOVERNMENT ONE ALBUM AT A TIME ARGENTINA IS GROWING BUT BRAZIL SUDDENLY COLLAPSED THIS YEAR INDEED THE US TRADE GROUP THAT CERTIFIES GOLD AND PLATINUM ALBUMS AND LOBBIES FOR THE INDUSTRY IN WASHINGTON HAS FOUND ITSELF PREOCCUPIED IN RECENT YEARS WITH FOREIGN PIRACY AFTER WE CRACKED DOWN ON ILLEGAL COPYING IN SINGAPORE IT MOVED TO INDONESIA SAYS JASON BERMAN HEAD OF THE RECORDING INDUSTRY ASSOCIATION OF AMERICA NOW WE'RE GOING AFTER PIRATES IN PARAGUAY WHICH IS A HUGE SUPPLIER TO BRAZIL AND ARGENTINA THE MUSIC INDUSTRY'S FINAL FRONTIER MOST INSIDERS AGREE IS REVERSING TRADITION TO SUCCESSFULLY IMPORT FOREIGN SUPERSTARS INTO THE US THERE ARE ENDLESS HORROR STORIES OF SPORADIC FAILED ATTEMPTS IN THE PAST BUT A NEW PUSH IS COMING AND MANY BELIEVE THE ODDS OF SUCCESS WILL BE HIGHER BERTELSMANN HAS A FIVEYEAR PLAN TO INTRODUCE FRENCH SUPERSTAR PATRIC BRUEL IN THE US MARKET SINGING IN ENGLISH HEINZ HENN A SENIOR VICE PRESIDENT WITH BERTELSMANN RELEASED MR BRUEL'S ALBUM ALL OVER EUROPE AND ASIA IN FRENCH AND HAD THE SINGER REDO IT IN SPANISH FOR SOUTH AMERICA TO STORM THE US MARKET MR HENN IS DETERMINED TO GET THE FRENCH MOVIE STAR CONSIDERED A HEARTTHROB IN HIS NATIVE COUNTRY INTO AMERICAN MOVIES AND TELEVISION I PROMISE YOU I GET THIS MAN ON LENO AND LETTERMAN AND WE HAVE THE NEXT SUPERSTAR SAYS MR HENN POLYGRAM IS CONVINCED THAT NANA MOUSKOURI THE GREEK ANSWER TO BARBRA STREISAND IS POISED TO TRANSCEND HER MINOR CULT STATUS IN THE US AND BECOME THE MAJOR STAR SHE IS THROUGHOUT EUROPE AND NOBODY IS TRYING HARDER TO BRING FOREIGN STARS INTO AMERICA THAN SONY WHICH FOUR YEARS AGO ASSIGNED A JAPANESE EXECUTIVE THE FULLTIME TASK OF PROMOTING JAPANESE POP AND ROCK STARS HERE HE HASN'T HAD A MAJOR SUCCESS YET BUT THIS MONTH HE WILL TRY AGAIN WITH NOKKO A YOUNG JAPANESE WOMAN RELEASING A RECORD OF DANCE SONGS IN ENGLISH JUST RECENTLY SONY ANNOUNCED A NEW US LABEL SOLELY INTENDED TO PUSH FOREIGN ACTS HERE YOU NEED A GROUP OF PEOPLE DEDICATED TO THIS AND NOTHING ELSE SAYS MICHAEL SCHULHOF CHAIRMAN OF SONY USA WE FIND THAT THE GUYS AT OUR EXISTING LABELS HAVE THEIR HANDS FULL PROMOTING US PRODUCT WE HAVE A SAYING AROUND HERE SAYS MR MOTTOLA SONY MUSIC'S PRESIDENT THERE ARE NO MORE RULES INDEED SONY IS READY TO TRY THE UNTHINKABLE BREAKING A FOREIGNLANGUAGE RECORD IN TO THE US YOU NEED THE RIGHT SONG AND THE RIGHT PLACEMENT SAYS MR ILBERMAN THE INTERNATIONAL CHIEF MAYBE WE'LL PUT IT INTO THE SOUNDTRACK FOR A SONY PICTURES MOVIE BUT WE'RE SURE IT'S TIME FOR THIS AND ONCE WE DO IT IT WILL OPEN DOORS IT WON'T BE EASY AMERICANS' APPETITE FOR THE EXOTIC AND FOREIGN IS DECIDEDLY LIMITED ASK CLAUDIA STANTEN WHO SIGNED AUSTRALIAN ABORIGINAL ROCK BAND YOTHU YINDI TO HOLLYWOOD RECORDS A UNIT OF WALT DISNEY CO THE EXOTIC GROUP WHICH SINGS IN ENGLISH AND ITS NATIVE DIALECT YOLNGU TOURED WITH SUCH WELLKNOWN AMERICAN ACTS AS TRACY CHAPMAN AND THE GRATEFUL DEAD MS STANTEN HAS WORKED HARD FOR THE BAND EVEN VISITING THEM IN THE AUSTRALIAN BUSH WHERE SHE DINED ON GREEN ANTS THE GROUP RECEIVED WIDESPREAD NEWS COVERAGE DURING ITS US TOUR LAST YEAR BUT AFTER ALL THE EFFORT EXPENSE AND TRAVEL SOLD BARELY 35000 COPIES OF ITS ALBUM TRIBAL VOICE IN THIS COUNTRY THAT'S PATHETIC BUT THIS IS AMERICA LET'S FACE IT SAYS MS STANTEN IT'S BEEN A BATTLE BUT IT'S A BATTLE WORTH FIGHTING MS COX IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9303260157 930326 SEAGULL ENERGY FINDS GAS HOUSTON SEAGULL ENERGY CORP SAID IT FOUND NATURAL GAS IN A NEW WELL IN THE GULF OF MEXICO 23 MILES EAST OF FREEPORT TEXAS NATURAL GAS ROSE FROM THE NEW WELL IN TWO SEPARATELY TESTED ZONES ONE TEST PRODUCED 88 MILLION CUBIC FEET OF GAS A DAY THROUGH A 20/64INCH OPENING WITH TUBING PRESSURE OF 2657 POUNDS PER SQUARE INCH IN THE OTHER TEST GAS FLOWED AT THE RATE OF 24 MILLION CUBIC FEET A DAY THROUGH AN 11/64INCH OPENING WITH PRESSURE OF 2482 POUNDS PER SQUARE INCH SEAGULL OWNS A MAJORITY STAKE IN THE WELL 9303260156 930326 INTERNATIONAL WORLD ECONOMY WARNING VENTURING INTO EXUSSR MAY WELL BE HAZARDOUS TO YOUR HEALTH BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HERE'S SOME PREDICTABLE ADVICE FOR ANY BUSINESS EXECUTIVE PLANNING TO INVEST IN THE FORMER SOVIET UNION BE SURE YOUR SUPPLY OF RAW MATERIAL AND PARTS IS RELIABLE STUDY THE LOCAL TRANSPORT SYSTEM CHECK OUT POLITICAL STABILITY AND HERE'S SOME OTHER ADVICE GET A DIPHTHERIA BOOSTER SHOT BUY A WATER PURIFIER PACK A RADIATION DETECTOR BRING YOUR OWN ANTIBIOTICS AND DISPOSABLE SYRINGES AVOID VEGETABLES IN OUTLYING PROVINCES SEND THE CHILDREN ABROAD EVERY TWO OR THREE MONTHS FOR SOME CLEAN AIR AS THOSE WORDS OF CAUTION INDICATE DOING BUSINESS IN RUSSIA AND OTHER PARTS OF THE FORMER SOVIET UNION CAN POSE SPECIAL PROBLEMS THERE ARE ALL THE USUAL CHALLENGES OF ANY NEW PROJECTSUPPLIES TRANSPORT MARKETS AND THE LIKE AND AS IN ANY DEVELOPING COUNTRY THERE ARE CONCERNS ABOUT HEALTH AND SAFETY AT ITS MOST BASIC IT PROBABLY ISN'T SAFE TO DRINK THE WATER IN THE FORMER USSR THE LAND AIR AND WATER ARE CONTAMINATED IN WAYS NO WESTERN NATION WOULD TOLERATE HEALTH STANDARDS NEVER AS HIGH AS OFFICIALLY CLAIMED ARE COLLAPSING DISEASES SELDOM SEEN ELSEWHERE ARE ENDEMIC LIFE EXPECTANCY FOR NEWBORN RUSSIAN MALES IS 63 YEARS AND DROPPING BELOW EVERY OTHER INDUSTRIAL NATION THE US FIGURE IS 72 JAPAN'S IS 76 AND GERMANY'S IS 81 THE CAUSES INCLUDE A RUSSIAN HERITAGE OF INDIFFERENCE TO PUBLIC SANITATION AND EQUIPMENT MAINTENANCE SOMETHING NOTED BY FOREIGNERS FOR CENTURIES ON TOP OF THAT CAME 70 YEARS OF COMMUNISM WHEN RULERS FOLLOWED POLICIES THAT WOULD BE ENVIRONMENTAL CRIMES ELSEWHERE THEIR FARMS AND FACTORIES SPEWED POISONOUS WASTE WITHOUT REGARD FOR THE EFFECTS AND THEY MADE COMPLAINING ABOUT IT A CRIME THEY ALSO LET THE PUBLIC HEALTH SYSTEM DECLINE CONDITIONS HAVE WORSENED SINCE THE SOVIET UNION COLLAPSED WHILE OFFICIALS NOW RECOGNIZE THESE PROBLEMS SPENDING ON HEALTH AND ENVIRONMENT HAS DECLINED AND WON'T REBOUND SOON PEOPLE WOULD RATHER EAT TODAY THAN CLEAN UP A LOCAL RIVER TO HAVE BETTER WATER TOMORROW SAYS PHILLIP MICKLIN OF WESTERN MICHIGAN UNIVERSITY A SPECIALIST ON ENVIRONMENTAL ISSUES IN THE FORMER SOVIET UNION THIS CREATES DILEMMAS FOR FOREIGN RESIDENTS ONE CONCERNS PERSONAL HEALTH MURRAY FESHBACH OF GEORGETOWN UNIVERSITY THE LEADING US AUTHORITY ON HEALTH IN THE FORMER SOVIET UNION SAYS ABOUT 50 OF THE DRINKING WATER IS UNSAFE ST PETERSBURG'S IS RIDDEN WITH DISEASECAUSING ORGANISMS AND DANGEROUS HEAVY METALS AND MR FESHBACH PREDICTS THE MOSCOW TREATMENT SYSTEM WILL BREAK DOWN IN TWO YEARS UNLESS SOMETHING IS DONE TURN A TAP IN KIEV AND A SMELLY BROWN FLUID MAY FLOW DISEASES SUCH AS DIPHTHERIA AND TUBERCULOSIS ARE SPREADING LOCAL MEDICAL SERVICES CAN BE EVEN MORE DANGEROUS MUCH FOOD IS CONTAMINATED WITH NITRATES OR PESTICIDES NUCLEAR EXPLOSIONS OR LEAKAGES HAVE CONTAMINATED VAST AREAS ESPECIALLY IN THE URAL MOUNTAINS AND AFFECT SOME OIL AND DIAMOND FIELDS MEANTIME MUCH LOWLEVEL RADIOACTIVE WASTE HAS BEEN DISCARDED WITHOUT SAFEGUARDS IT'S JUST BEEN DUMPED IN THE BACK OF BUILDINGS OR TOSSED OUT IN THE SUBURBS AT ANY LIKELY SPOT SAYS PROF MICKLIN THEN THERE'S THE MILITARY MISSILE PROBLEM EXPERTS WORRY THAT LAX CONTROLS MAY ALLOW DEADLY ACCIDENTS A RECENT EXPLOSION AT A ROCKETFUEL PLANT NEAR ST PETERSBURG RELEASED WHAT MR FESHBACH CALLS SUPERTOXIC SUBSTANCES HE ESTIMATES 100000 TONS OF SUCH DANGEROUS STUFF ARE STOCKPILED IN FACTORIES AND MISSILE FIELDS DESPITE THIS GRIM PICTURE THERE ARE MANY ATTRACTIONS FOR FOREIGN INVESTORS ESPECIALLY PATIENT ONES IT IS WORTH REMEMBERING THAT RUSSIA IS INHERENTLY A RICH COUNTRY ITS NATURALRESOURCE BASE EXCEEDS THAT OF ANY OTHER COUNTRY IN THE WORLD SECRETARY OF STATE WARREN CHRISTOPHER NOTED RECENTLY 9303260155 930326 WHO'S NEWS HEALTH IMAGES INC HEALTH IMAGES INC ATLANTA PERRY POLSINELLI 35 YEARS OLD RESIGNED AS EXECUTIVE VICE PRESIDENT OF THIS PROVIDER OF MAGNETIC RESONANCE IMAGING EQUIPMENT TO TAKE AN EXECUTIVE POST AT MOBILE TECHNOLOGY INC LOS ANGELES HEALTH IMAGES SAID IT HASN'T NAMED A SUCCESSOR 9303260154 930326 OTC FOCUS OVERTHECOUNTER SHARES JUMP 665 IN AGGRESSIVE BUYING ACROSS THE BOARD BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS WERE ON THE MOVE AGAIN AS AGGRESSIVE BUYING ACROSS THE BOARD PUSHED OVERTHECOUNTER STOCKS HIGHER OBSERVERS SAID PRICES FIRMED AS MARKET PLAYERS LEFT THE SIDELINES AND JOINED THE ACTION IN MANY SECTORS TECHNOLOGY STOCKS FARED ESPECIALLY WELL AND DRUG ISSUES FIRMED AFTER GETTING POUNDED WEDNESDAY THE LARGER MARKET WAS STRONGER THROUGHOUT THE SESSION ALTHOUGH TRADING WAS CHOPPY AT TIMES ON PROGRAM BUYING THE DOW JONES INDUSTRIAL AVERAGE ROSE 1594 POINTS OR 046 TO FINISH AT 346132 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX CLIMBED 142 POINTS OR 058 TO 24833 THERE WERE SOME NICE BIDS COMING IN SAID WILLIAM HANEMAN VICE PRESIDENT OF OTC TRADING AT LEGG MASON WOOD WALKER BUT THE KEY IS WILL THE INVESTORS STAY IN JIM TARANTINO HEAD OF OTC TRADING AT HAMBRECHT & QUIST SAID NASDAQ STOCKS GOT EXTREMELY OVERSOLD AND SHORT INTEREST WENT UP WE'RE STARTING TO SEE PEOPLE BECOME VERY PESSIMISTIC SHORT INTEREST IS THE TOTAL AMOUNT OF SHARES SOLD SHORT BETS THAT A STOCK'S PRICE WILL FALL AT ANY POINT IN TIME MR TARANTINO SAID HE EXPECTS OTC TRADING TO CONTINUE TO BE VOLATILE IN THE NEAR TERM AS HEALTHCARE AND MEDICALDEVICE PRODUCT STOCKS PUT PRESSURE ON THE MARKET TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME CLIMBED TO 218253400 SHARES FROM 202768800 SHARES WEDNESDAY FOR THE MOMENT INVESTORS ARE CALMER ON NEWS FROM RUSSIA THAT BORIS YELTSIN STILL HOLDS ON TO THE PRESIDENCY RUSSIAN PARLIAMENT SPEAKER RUSLAN KHASBULATOV MR YELTSIN'S CHIEF RIVAL SAID HE NOW OPPOSES IMPEACHING THE PRESIDENT BUT THE COUNTRY'S HARDLINE CONGRESS MAY MOVE AS EARLY AS THIS WEEKEND TO OUST MR YELTSIN WHICH COULD RATTLE GLOBAL MARKETS HOWEVER PAUL STANTON HEAD OF OTC TRADING AT JOHNSTON LEMON & CO SAID HE DOESN'T BELIEVE MARKET PLAYERS ARE REACTING TO THE RUSSIAN SITUATION BECAUSE IT NOW LOOKS AS THOUGH THE CONGRESS WILL TRY TO WORK WITH MR YELTSIN HE SAID OTC TRADING IS RESPONDING MORE TO MIXED SIGNALS PARTICULARLY FROM BONDS AS THE MARKET CONTINUES TO BE DRIVEN BY INTEREST RATES ALTHOUGH THE TREASURY'S 30YEAR BOND LOST MORE THAN 1/2 POINT YESTERDAY ITS YIELD IS STILL LOW AT 686 MEDICALRELATED STOCKS ALTHOUGH MIXED SHOWED SOME BRIGHT SPOTS AS INVESTORS SHOOK OFF A NEGATIVE EARNINGS OUTLOOK FROM MERCK EARLIER THIS WEEK AND NEWS THAT THE COMPANY PLANS WORK FORCE CUTS MERCK CLIMBED 3/4 TO 35 1/2 IN NEW YORK STOCK EXCHANGE TRADING AMONG DRUG ISSUES BIOGEN ROSE 3/8 TO 27 5/8 CHIRON ADDED 3/8 TO 48 AND GENZYME WAS 3/8 HIGHER AT 31 3/4 IMMUNEX ROSE 1 TO 42 1/4 AFTER ANNOUNCING WEDNESDAY THAT IT HAD RECEIVED APPROVAL FROM A EUROPEAN COMMUNITY COMMITTEE FOR ITS WHITE BLOOD CELL STIMULATING FACTOR PRODUCT SARGRAMOSTIM MERRILL LYNCH RAISED ITS INTERMEDIATETERM INVESTMENT RATING ON THE SEATTLE COMPANY TO ABOVE AVERAGE FROM AVERAGE VENTRITEX SOARED 3 3/4 TO 24 3/4 AFTER REPORTS THAT BIG BOARDLISTED ELI LILLY'S ENDOTAK TRANSVENOUS LEAD SYSTEM WILL BE REVIEWED BY A FOOD AND DRUG ADMINISTRATION PANEL VENTRITEX IS EXPECTING FDA APPROVAL SHORTLY FOR ITS CADENCE DEFIBRILLATOR WHICH COULD BENEFIT FROM USE WITH A TRANSVENOUS LEAD SYSTEM ELI LILLY SHED 1/4 TO 45 7/8 THE TECHNOLOGY SECTOR CONTINUED ITS RALLY APPLE COMPUTER ROSE 1 TO 54 3/4 AFTER THE COMPANY SAID IT PLANS TO LICENSE KEY TECHNOLOGIES TO CONCERNS THAT CAN MANUFACTURE AND MARKET PRODUCTS FOR ITS NEWTON TECHNOLOGY LOTUS COMPUTER GAINED 1/4 TO 27 THE CAMBRIDGE MASS COMPANY AND INTERNATIONAL BUSINESS MACHINES HAVE ENTERED INTO A JOINT MARKETING AGREEMENT UNDER WHICH IBM WILL PROVIDE ITS OFFICE AUTOMATION SOLUTIONS USERS WITH ADDITIONAL LOTUS NOTES PRODUCTS IBM LOST 5/8 TO FINISH AT 50 1/2 ON THE BIG BOARD ORACLE SYSTEMS TOPPED THE MOST ACTIVES LIST AGAIN ADDING 1 1/8 TO 36 7/8 9303260153 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT STAYING HOME TALES OF THE TAPE THIS STORY WAS COMPILED BY WALL STREET JOURNAL STAFF REPORTERS JOHN URQUHART IN OTTAWA MASAYOSHI KANABAYASHI IN TOKYO THOMAS KAMM IN RIO DE JANEIRO AND MATT MOFFETT IN MEXICO CITY AS THEY DO IN EUROPE TASTES AND HABITS OF VIDEO CONSUMERS VARY WIDELY IN THE WORLD'S OTHER MAJOR MARKETS VIOLENT FILMS ARE AMONG THE MOST POPULAR IN BRAZIL WHILE IN JAPAN LOCALLY PRODUCED OFFERINGS OF SOFT PORNOGRAPHY ARE VOLUME LEADERS IN CONTRAST CUSTOMERS IN CANADA AND MEXICO GENERALLY STICK CLOSER TO A HOLLYWOOD DIET HERE IS A SUMMARY OF TRENDS IN THESE FOUR COUNTRIES WHERE VCRS ARE ABUNDANT AND VIDEO APPETITES ARE LARGE CANADIANS TEND TO RENT AND BUY THE SAME HOLLYWOOD VIDEOS AS AMERICANS BUT THEY ALSO SNAP UP CANADIANPRODUCED HITS SUCH AS ANNE OF GREEN GABLES JESUS OF MONTREAL AND THE BLACK ROBE NOT SURPRISINGLY HOCKEY VIDEOS ARE ALSO POPULAR WITH CANADIANS A CURRENT FAVORITE IS DON CHERRY'S ROCK'EM SOCK'EM HOCKEY IT IS THE FOURTH VIDEO STARRING THE PUGNACIOUS FORMER BOSTON BRUINS COACH WITH GAME CLIPS OF HIS BONECRUNCHING BRAND OF PLAY IN OTTAWA THE 46MINUTE FILM SELLS AT ONE STORE FOR 1995 CANADIAN DOLLARS US1565 AND RENTS FOR C199 BLOCKBUSTER ENTERTAINMENT CORP A MAJOR VIDEO RETAILER TRIES TO DO ITS BIT FOR LOCAL MOVIES OFFERING A CANADIAN VIDEO SECTION IN ITS CANADIAN STORES BUT ASIDE FROM AN OCCASIONAL CANADIAN HIT OR HOCKEY FILM MOST CUSTOMERS HEAD STRAIGHT FOR THE NEW HOLLYWOOD RELEASES EVEN POPULAR CANADIAN TITLES DON'T MATCH A HOLLYWOOD HIT LIKE LETHAL WEAPON SAYS GERRY WEBER BLOCKBUSTER'S SENIOR VICE PRESIDENT FOR DOMESTIC OPERATIONS FOR NEW RELEASES CANADA ACCOUNTS FOR ABOUT 9 OF TOTAL USCANADA VIDEORENTAL REVENUES BUT FOR SOME MOVIES SUCH AS PSYCHO 4 THAT HAVE BEEN SHOWN ON CABLE SYSTEMS IN THE US BUT NOT IN CANADA THE CANADIAN SHARE OF THE RENTALS' TOTAL CAN BE AS HIGH AS 20 MORE THAN 70 OF CANADIAN HOUSEHOLDS NOW HAVE VCRS AND CANADIANS RENT VIDEOS ABOUT AS FREQUENTLY AS AMERICANS ACCORDING TO INDUSTRY DATA BUT CANADIAN RETAILERS SAY THE RENTAL BUSINESS HAS LEVELED OFF AND VIDEO SALES NOW SHOW THE BETTER GROWTH PROSPECTS VIDEO SALES GOT OFF TO A SLOW START IN CANADA BECAUSE VIDEOS WERE INITIALLY PRICED SEVERAL DOLLARS ABOVE US LEVELS BUT SALES HAVE PICKED UP IN CANADA AS PRICES HAVE DECLINED A VIDEO THAT NOW SELLS FOR 1995 IN THE US OFTEN SELLS FOR THE SAME FIGURE IN CANADIAN DOLLARS EVEN THOUGH THE CANADIAN DOLLAR IS CURRENTLY VALUED AT LESS THAN 80 US CENTS CANADIAN VIDEO SALES GREW AN ESTIMATED 20 LAST YEAR AND ARE EXPECTED TO GROW ANOTHER 15 THIS YEAR SAYS STEVE MARTIN MARKETING VICE PRESIDENT AT VIDEO ONE CANADA LTD A VIDEO DISTRIBUTOR BUT HE SAYS CANADA WITH ABOUT 10 OF THE US POPULATION LEVEL STILL ACCOUNTS FOR ONLY ABOUT 5 OF TOTAL USCANADA VIDEO SALES CANADA'S VIDEO MARKET IS DOMINATED BY INDEPENDENT OUTLETS MANY OF THEM SMALL NEIGHORHOOD STORES THE THREE BIGGEST RETAILERS JUMBO VIDEO INC BLOCKBUSTER AND ROGERS VIDEO A UNIT OF ROGERS COMMUNICATIONS INC TOGETHER ACCOUNT FOR LESS THAN 20 OF THE CANADIAN MARKET BLOCKBUSTER AIMS TO HAVE 300 STORES IN CANADA WITHIN THE NEXT THREE YEARS UP FROM ITS CURRENT 55 JUMBO HOWEVER HAS ITS SIGHTS ON THE US MARKET THE US IS CRYING OUT FOR A STRONG NO 2 PLAYER SAYS CLIFF HORWITZ JUMBO'S PRESIDENT HE IS CURRENTLY DISCUSSING HIS US PLANS WITH PROSPECTIVE AMERICAN PARTNERS MR HORWITZ BELIEVES JUMBO CAN BRING SOME MARKETING SAVVY TO THE US JUMBO USES FASTFOODTYPE PROMOTIONS OFFERING CUSTOMERS PACKAGE DEALS SUCH AS GREAT NIGHTS AT HOME WHICH INCLUDES TWO MOVIES A SOFT DRINK AND A BAG OF CHIPS FOR C799 FRENCHSPEAKING QUEBEC IS THE BIGGEST CANADIAN MARKET FOR LOCALLY PRODUCED FILMS AND OFFSHORE FOREIGNLANGUAGE MOVIES BUT VIDEO DISTRIBUTORS SAY THE STRONGEST DEMAND IN QUEBEC AS IN THE REST OF THE COUNTRY IS FOR HOLLYWOOD MOVIES EITHER WITH THE ORIGINAL SOUNDTRACK OR DUBBED IN FRENCH JAPAN IS A MAJOR MARKET FOR HOME VIDEO RENTALS ESPECIALLY HOLLYWOOD TITLES RENTAL SHOPS ARE CHOCK FULL OF USMADE FLICKS THIS PAST HOLIDAY SEASON BASIC INSTINCT HOOK BATMAN RETURNS HOME ALONE AND CINDERELLA TOPPED THE HIT LIST IN JAPANESE STORES DIANE LANE AUDREY HEPBURN AND MICKEY ROURKE ALL HAVE DEDICATED FOLLOWINGS IN JAPAN BUT THE INDUSTRY IS IN THE MIDST OF ITS FIRST SLUMP EVER COMBINED SALES OF VIDEOCASSETTES AND LASER DISKS FELL 42 IN THE FIRST HALF OF LAST YEAR ACCORDING TO THE JAPAN VIDEO ASSOCIATION IT WAS THE FIRST TIME SINCE THE ASSOCIATION WAS ESTABLISHED IN 1983 THAT SALES FELL FROM THE YEAREARLIER PERIOD JAPAN'S HOMEVIDEO BUSINESS TOOK OFF IN THE EARLY 1980S ALONG WITH THE DISSEMINATION OF VIDEOCASSETTE RECORDERS UNTIL VERY RECENTLY SUPPORTED BY AN INCREASE IN THE NUMBER OF RENTAL SHOPS SALES OF VIDEOS GREW AT DOUBLEDIGIT ANNUAL RATES TODAY ABOUT 65 OF JAPAN'S HOUSEHOLDS HAVE VCRS AND THE ELECTRONICS INDUSTRIES ASSOCIATION OF JAPAN SAYS THE MARKET HAS MATURED CONSIDERABLY NOW THE NUMBER OF RENTAL SHOPS HAS STARTED TO DECLINE IN PART BECAUSE OF CUTTHROAT COMPETITION AMONG THE OUTLETS IN THE LATE 1980S THE NUMBER OF SHOPS WAS ESTIMATED AT MORE THAN 15000 NATIONALLY BUT NOW IT'S BELIEVED TO BE DOWN TO ABOUT 10000 RENTAL REVENUE ALSO PEAKED IN THE LATE 1980S PARTLY BECAUSE OF A SLOWDOWN IN THE SUPPLY OF NEW TITLES ACCORDING TO THE JAPAN VIDEO STORE ASSOCIATION ANNUAL ESTIMATED REVENUE AT RENTAL SHOPS TOPPED 400 BILLION YEN ABOUT 32 BILLION IN THE LATE 1980S BUT HAS NOW SHRUNK TO 350 BILLION YEN OR ABOUT 26 BILLION IN JAPANESE RENTAL SHOPS AMERICAN MOVIES GET MORE SHELF SPACE THAN JAPANESE TITLES MAINLY BECAUSE CREATIVITY IN JAPAN'S MOVIE INDUSTRY IS SO MEAGER ONE HOMEGROWN PRODUCT DOES WELL THOUGH JAPANESEMADE SOFT PORNOGRAPHY THE MOST PROFITABLE GENRE FOR RENTAL SHOPS ADULT VIDEOS ACCOUNT FOR ABOUT A QUARTER OF ALL REVENUE FOR AN AVERAGE VIDEORENTAL SHOP EVEN THOUGH THEY MAKE UP ONLY ABOUT 15 OF THE INVENTORY IN JAPAN AN OVERNIGHT VIDEO RENTAL COSTS ABOUT 240 TO 320 BUYING A NEW TITLE IS RATHER EXPENSIVE ABOUT 120 PER CASSETTE SO SALES TO CONSUMERS ARE LOW CHEAP VERSIONS OF VIDEOCASSETTES COME OUT ABOUT A YEAR AFTER THE TITLES HIT THE RENTAL MARKET AND COST ABOUT 20 TO 25 THERE IS A SMALL BUT GROWING CONSUMER MARKET FOR THESE SALESTHROUGH TITLES MANY ARE ANIMATED MOVIES FOR CHILDREN AND MUSIC VIDEOS IN JAPAN MOST SALESTHROUGH VIDEOS ARE SOLD AT RECORD SHOPS WITH URBAN VIOLENCE GROWING AND A DEEP RECESSION CUTTING INTO THEIR PURCHASING POWER BRAZILIANS HAVE ALSO ADOPTED THE HABIT OF SPENDING AN EVENING IN FRONT OF THEIR TV SETS WATCHING A HOME VIDEO AND WHAT DO THEY WATCH WELL A LOT OF VIOLENCE PEOPLE IDENTIFY WITH VIOLENT MOVIES ESPECIALLY IN NEIGHBORHOODS WHERE THERE'S A LOT OF VIOLENCE EXPLAINS LUIZ CASELLI OWNER OF A VIDEORENTAL OUTLET IN RIO DE JANEIRO'S COPACABANA DISTRICT BUT THEY'RE ALSO SUCKERS FOR A GOOD COMEDY OR ADVENTURE MOVIE AND THEY LIKE EROTIC MOVIES TOO ABOUT 15 OF THE ESTIMATED 200 MILLION IN TOTAL ANNUAL SALES OR RENTALS ARE BLUE MOVIES UNTIL 1991 BRAZIL WAS A BOOMING MARKET FOR THE VIDEO BUSINESS AND VIDEO OUTLETS SPRANG UP ALL OVER THE COUNTRY EVEN IN SOME OF RIO'S FAMOUS SHANTYTOWNS SUCH AS ROCINHA BUT SINCE THEN THE RECESSION SET OFF BY THE GOVERNMENT IN HOPES OF DEFEATING INFLATION HAS HIT THE VIDEO MARKET HARD THE NUMBER OF RENTAL OUTLETS IN BRAZIL FELL TO 6800 IN 1992 FROM 8500 IN 1990 IN THE SAME PERIOD THE NUMBER OF FILMS SOLD TO THESE OUTLETS FELL TO 22 MILLION FROM 55 MILLION AND THE NUMBER OF VIDEO DISTRIBUTORS DROPPED TO 20 FROM 80 ACCORDING TO JORNAL DO VIDEO A SAO PAULO TRADE PUBLICATION THE DROP ALLOWED MEXICO TO OVERTAKE BRAZIL AS THE BIGGEST LATIN AMERICAN MARKET FOR VIDEO PRODUCTS THE DROP IN BRAZIL IS EXPLAINED LARGELY BY PRICE BOTH VCR MACHINES WHICH COST ON AVERAGE ABOUT 500 AND TAPES WHICH SELL FOR BETWEEN 25 AND 80 ARE EXPENSIVE FOR BRAZILIANS WHO SEE THEIR INCOME DROP REGULARLY ABOUT 85 MILLION BRAZILIANS OWN VCRS OR ABOUT 6 OF BRAZIL'S POPULATION OF 150 MILLION BECAUSE OF BRAZIL'S LOW INCOME LEVEL THE MARKET IS FOCUSED LARGELY ON RENTALS RATHER THAN THE SELLTHROUGH BUSINESS ALTHOUGH EDITORA ABRIL BRAZIL'S BIGGEST PUBLISHING GROUP IS DOING QUITE WELL SELLING WALT DISNEY VIDEOS AT ABOUT 25 APIECE UNLIKE THE US WHERE VIDEOS ARE AVAILABLE IN A WIDE RANGE OF PLACES VIDEO RENTALS HERE ARE ALMOST EXCLUSIVELY THE PRESERVE OF VIDEO CLUBS WHERE CUSTOMERS PAY A SMALL MEMBERSHIP FEE AND THEN PAY FOR EACH MOVIE THEY RENT MR CASELLI'S SHOP A BRANCH OF THE VIDEO & CIA CHAIN LOCATED IN A MINISHOPPING MALL ON RIO'S BUSTLING BARATA RIBEIRO STREET IS TYPICAL THE SHOP LOOKS LIKE A BOOKSTORE WITH VIDEOS ON RACKS ACCORDING TO GENRE THE SHOP HAS ABOUT 7000 TAPES AVAILABLE AND ANOTHER 4000 IN STOCK CUSTOMERS PAY ABOUT 3 TO JOIN THE CLUB AND THEN CAN CHOOSE AMONG THREE DIFFERENT TYPES OF FILMS PROMOTION CATALOG OR NEW LAUNCH WHOSE RENTAL COSTS ARE RESPECTIVELY 70 CENTS 150 AND 2 PER DAY WHAT THEY RENT SHOULD BE HEARTENING NEWS FOR THE US FILM INDUSTRY 90 OF RENTALS ARE US MOVIES MOSTLY COMEDIES ADVENTURE MOVIES AND EROTIC FILMS SAYS MR CASELLI ALTHOUGH BRAZIL IS ONE OF THE WORLD'S MAJOR PRODUCERS OF SOAP OPERAS HIS CLIENTS SHOW NO INTEREST IN RENTING TAPES OF THEM OR OF US TELEVISION SERIES FOR THAT MATTER MR CASELLI'S CLIENTS' TASTES MATCH THOSE OF BRAZILIANS IN GENERAL ACCORDING TO JORNAL DO VIDEO 49 OF THE 50 MOSTRENTED FILMS IN BRAZIL IN 1992 WERE AMERICAN LED BY TERMINATOR 2 SILENCE OF THE LAMBS AND SLEEPING WITH THE ENEMY THE LONE NONUS FILM WAS THE ITALIANFRENCH PRODUCTION CINEMA PARADISO IF EVER A US FILM SEEMED DESTINED FOR FAILURE IN THE VIDEO MARKET SOUTH OF THE BORDER IT WAS JFK THE MOVIE'S TORTUOUS THEORY OF A CONSPIRACY TO ASSASSINATE PRESIDENT JOHN F KENNEDY WAS HARD ENOUGH FOR MANY US AUDIENCES TO FOLLOW JUST IMAGINE TRYING TO UNDERSTAND EVERY TWIST AND TURN OF THE THREEHOUR PLOT IF YOU WERE RELYING ON SPANISH SUBTITLES AND HOW WOULD MEXICANS REACT TO THE TALE OF A PECULIARLY AMERICAN TRAGEDY IN MUCH THE SAME WAY THAT THEIR NORTHERN NEIGHBORS DID IT TURNS OUT JFK WAS HUGE IN MEXICO KENNEDY WILL ALWAYS BE EL PRESIDENTE TO US TOO SAYS VIDEO DEALER RAUL DUARTE WHO SAYS JFK BUMPED A STEVEN SEAGAL FILM FROM ATOP HIS RENTAL LIST AND THEN STAYED THERE FOR WEEKS OR AS JUAN JAIME PETERSEN DIRECTOR GENERAL OF BLOCKBUSTER VIDEOMEXICO PUTS IT I HATED THE GRINGOS FOR YEARS FOR KILLING KENNEDY MEXICANS AND AMERICANS DON'T REACT TO FILMS AS DIFFERENTLY AS YOU'D THINK INDEED THE RESEMBLANCE BETWEEN THE VIDEOS THAT SELL IN MEXICO AND THOSE THAT DO WELL UP NORTH BORDERS ON THE UNCANNY ABOUT 90 OF THE VIDEOS RENTED IN MEXICO ARE MADE IN HOLLYWOOD AND USUALLY ADAPTED WITH SUBTITLES INSTEAD OF SPANISH DUBBING FOR JANUARY A TYPICAL MONTH BLOCKBUSTER'S TOP RELEASES WERE ALL VIDEOS THAT HAD BEEN SMASHES NORTH OF THE BORDER BASIC INSTINCT LETHAL WEAPON 3 AND WAYNE'S WORLD AND MEXICAN VIDEO DEALERS ARE CHARIER THAN THEIR GRINGO COUNTERPARTS ABOUT FILMS THAT SHOW SEX OR EVEN TALK ABOUT IT MULTIVIDEO A CHAIN OF 40 RENTAL STORES PURGED ITS RACKS OF THE MADONNA CONCERT FILM TRUTH OR DARE WHEN CUSTOMERS COMPLAINED OF THE SINGER'S RACY CONVERSATIONS WITH MEMBERS OF HER ENTOURAGE IN RETROSPECT SAYS IGNACIO GOMEZ THE CHAIN'S FRANCHISING CHIEF THE MOVIE'S SPANISHLANGUAGE TITLE EN LA CAMA CON MADONNA OR IN BED WITH MADONNA SHOULD HAVE BEEN A CLUE BUT OVERALL MEXICANS HAVE FEW COMPLAINTS WITH US VIDEOS A FACT REFLECTED IN THE FAST GROWTH OF THE MARKET VCR PENETRATION HAS DOUBLED TO ABOUT 35 OF URBAN HOUSEHOLDS IN JUST FIVE YEARS THE VIDEORENTAL MARKET HAS ONE DOMINANT PLAYER VIDEOVISA A SUBSIDIARY OF THE GIANT COMMUNICATIONS COMPANY TELEVISA VIDEOVISA HAS MORE THAN 1700 STORES THOUGH MOST OF THEM ARE MUCH SMALLER THAN THE AVERAGE US VIDEO STORE THE COMPANY CLAIMS ROUGHLY HALF THE LEGAL MARKET FOR VIDEO RENTALS UNTIL RECENTLY VIDEOVISA'S BIGGEST COMPETITION CAME FROM VIDEO PIRATES WHOSE REVENUE IS ESTIMATED TO EQUAL 30 OF THE TOTAL FOR THE LEGAL MARKET THE REST OF THE LEGAL MARKET HAD BEEN FRAGMENTED AMONG SMALL OPERATORS UNTIL THE ARRIVAL OF BLOCKBUSTER IN SEPTEMBER 1991 THE COMPANY PUT UP 30 STORES IN ITS FIRST 15 MONTHS OF OPERATION MAKING BLOCKBUSTERMEXICO THE FASTEST GROWING INTERNATIONAL OPERATION THE COMPANY HAS THAT'S ONLY THE BEGINNING BLOCKBUSTER PLANS TO BUILD 110 MORE STORES IN MEXICO BY THE END OF 1994 IN MR PETERSEN'S OFFICE ARE SEVERAL WALLSIZE MAPS OF LEADING MEXICAN CITIES EACH FESTOONED WITH PINS REPRESENTING PLANNED BLOCKBUSTER SITES MEXICANS JUST CAN'T GET ENOUGH OF US FILMS HE SAYS 9303260152 930326 WHO'S NEWS NATIONAL CONVENIENCE STORES INC NATIONAL CONVENIENCE STORES INC HOUSTON CHARLES J LUELLEN 63 YEARS OLD WAS NAMED A DIRECTOR OF THIS RETAIL CONVENIENCE STORE CONCERN EXPANDING THE BOARD TO SEVEN MEMBERS MR LUELLEN FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF ASHLAND OIL INC UNDER ITS RECENTLY APPROVED REORGANIZATION PLAN NATIONAL CONVENIENCE WILL EVENTUALLY INCREASE THE BOARD'S SIZE TO EIGHT MEMBERS 9303260151 930326 WHO'S NEWS BKLA BANCORP BKLA BANCORP WEST HOLLYWOOD CALIF PAUL G LING WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BANK HOLDING COMPANY SUCCEEDING MARK E BUCHMAN WHO CITED POLICY DIFFERENCES WHEN HE RESIGNED IN OCTOBER IN THE INTERIM SHERMAN L ANDELSON 68 CHAIRMAN SERVED AS ACTING PRESIDENT AND CHIEF EXECUTIVE OFFICER MR LING 56 WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT CALIFORNIA DIVISION MANAGER MANUFACTURERS BANK A UNIT OF SAKURA BANK LTD TOKYO 9303260150 930326 WHO'S NEWS COFFEE EXCHANGE REELECTS FALK NEW YORK CHARLES H FALK PRESIDENT OF LDS COMMODITIES INC WAS REELECTED TO A SECOND TWOYEAR TERM AS CHAIRMAN OF THE BOARD OF MANAGERS OF THE COFFEE SUGAR & COCOA EXCHANGE INC HE WAS REELECTED BY MEMBERS AT THE EXCHANGE'S ANNUAL MEETING WEDNESDAY THE COFFEE SUGAR & COCOA EXCHANGE IS THE WORLD'S LEADING MARKETPLACE FOR FUTURES AND OPTIONS TRADING IN THE THREE INTERNATIONAL COMMODITIES THE EXCHANGE IS AWAITING COMMODITY FUTURES TRADING COMMISSION APPROVAL TO TRADE FUTURES AND OPTIONS CONTRACTS ON NONFAT DRY MILK AND CHEDDAR CHEESE 9303260149 930326 PEPPERAND SALT SCREAMS ALOUD FOR A PROMPT LEXICOGRAPHIC CURB THERE'S NOTHING SURE IN THIS LIFE AS WE TRAVEL THROUGH IT EXCEPT THAT CERTAIN RESTRICTIONS MAY APPLY 9303260148 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT COVER HOLLYWORLD US COMPANIES INCREASINGLY CREATE ENTERTAINMENT FOR THE WORLD AND THE WORLD CAN'T SEEM TO GET ENOUGH OF IT BY RICHARD TURNER THE ANGUISH WAS PALPABLE FOREIGNERS TAKE OVER HOLLYWOOD THE HEADLINES SCREAMED AMERICA SELLS ITS SOUL IT WAS JUST A FEW YEARS AGO AND THREE OF THE SIX MAJOR STUDIOS HAD BEEN ACQUIRED BY FOREIGN ENTITIES SOON IT WAS FEARED THE FOREIGNERS WOULD TAKE CREATIVE CONTROL RESULTING IN A COMMITTEEMADE STEW OF EDGELESS MOVIES THAT WOULD PLEASE NO ONE REFERENCES TO ANYTHING STRICTLY AMERICAN BASEBALL HOT DOGS WHATEVER WOULD BE PROHIBITED AND SYLVESTER STALLONE WOULD STAR IN EVERY FILM A GREAT SCRIPT BUT IT TURNS OUT TO HAVE HAD A MAJOR FLAW IT DIDN'T HAPPEN DESPITE ALL THE FEARS THE DOMINANCE OF AMERICAN MOVIES AND MOVIE MAKERS IS GREATER THAN EVER FOREIGN OWNERS AND FINANCIERS ARE LEAVING THE AMERICAN PRACTITIONERS ALONE TO DO THEIR MAGIC AND AS AMERICAN CULTURE AND VALUES HAVE SPREAD AUDIENCES AROUND THE WORLD INCREASINGLY ARE DEMANDING MAINSTREAM HOLLYWOOD FARE OVERSEAS CAPITAL MAY PROVIDE THE JUMPSTART BUT AMERICAN PRODUCERS DRIVE THE CAR WE DON'T HAVE A COMPETITOR IN THE WORLD SAYS JACK VALENTI HEAD OF THE MOTION PICTURE ASSOCIATION OF AMERICA WE HAVE A 4 BILLION SURPLUS IN OUR BALANCE OF TRADE AND I DON'T KNOW OF MANY OTHER INDUSTRIES THAT CAN MAKE THAT CLAIM BUT THAT'S ONLY PART OF THE STORY HOLLYWOOD MAY HAVE RETAINED CREATIVE CONTROL OVER ITS MOVIES BUT AS US BOXOFFICE REVENUE HAS STAGNATED AND THE GROWTH OF THE HOME VIDEO MARKET HAS SLOWED FOREIGN AUDIENCES HAVE BECOME INCREASINGLY CRUCIAL TO A FILM'S SUCCESS HOLLYWOOD HAS ALWAYS CATERED MOVIES TO ITS PERCEIVED AUDIENCE AND THAT AUDIENCE IS NOW GLOBAL IN OTHER WORDS WHAT THE FOREIGN OWNERS DIDN'T DO WITH THEIR TAKEOVERS WORLDWIDE MOVIEGOERS HAVE DONE WITH THEIR TICKET PURCHASES THEY HAVE MADE HOLLYWOOD INCREASINGLY CONSIDER FOREIGNERS WHEN MAKING THEIR FILMS HOLLYWOOD IS THE DESIGN PORT' THE PLACE WHERE THE CREATIVE DECISIONS ARE MADE SAYS PETER GUBER CHAIRMAN OF SONY CORP'S SONY PICTURES ENTERTAINMENT WHICH CONTROLS COLUMBIA PICTURES AND TRISTAR PICTURES BUT EVERYTHING ELSE ABOUT THE BUSINESS IS GLOBAL IT'S AN ATTITUDINAL CHANGE NOT AN OPERATIONAL ONE WE USED TO MAKE MOVIES AND SAY WHAT'S IT GOING TO DO FOREIGN' IT WAS JUST EXTRA REVENUE THE GRAVY BUT NOW EVERY FILM WE MAKE IS AN INTERNATIONAL FILM WE MAKE THEM FOR THE WORLD AND INDEED BY THE FIREPLACE IN MR GUBER'S SUMPTUOUS OFFICE IS A POSTER WITH FIVE MAJOR MALE STARS IN CURRENT OR COMING COLUMBIA/TRISTAR MOVIES ALL WITH INTERNATIONAL BOXOFFICE APPEAL ARNOLD SCHWARZENEGGER SYLVESTER STALLONE CLINT EASTWOOD BRUCE WILLIS AND JEANCLAUDE VAN DAMME THEIR POPULARITY FOR THE MOST PART STEMS FROM A TRIEDANDTRUE HOLLYWOOD FORMULA THAT PLEASES AUDIENCES THE WORLD OVER WALTER MITTYS EXIST EVERYWHERE AND MANY GO TO THE MOVIES TO FANTASIZE ABOUT BLOWING BAD GUYS AWAY TERMINATOR 2 JUDGMENT DAY SOLD 500 MILLION IN TICKETS WORLDWIDE MOSTLY IN OVERSEAS MARKETS STILL HOWEVER SIMPLE THE HOLLYWOOD FORMULA MAY SEEM HOWEVER OBVIOUS IT MAY APPEAR TO MANY MOVIEGOERS THE FACT IS THAT FOREIGNERS HAVE NOT BEEN VERY SUCCESSFUL AT COPYING IT SO THEY HAVE DONE THE NEXT BEST THING THEY HAVE BOUGHT IN NEWS CORP OF AUSTRALIA OWNS FOX INC SONY OWNS SONY PICTURES ENTERTAINMENT AND MATSUSHITA ELECTRIC INDUSTRIAL CO OWNS MCA INC IN ADDITION TIME WARNER INC SOLD TWO JAPANESE COMPANIES A 1 BILLION STAKE IN ITS SPUNOFF ENTERTAINMENT UNIT AND WALT DISNEY CO HAS FINANCED MANY OF ITS FILMS WITH OVERSEAS MONEY THE OWNERSHIP ISSUE IS NEUTRAL SAYS PAUL KAGAN AN ENTERTAINMENTINDUSTRY ANALYST AT PAUL KAGAN ASSOCIATES IN CARMEL CALIF IT DOESN'T MATTER THE PRODUCT IS UNIQUELY AMERICAN NO MATTER WHO OWNS IT THE FOREIGNERS' WILLINGNESS TO LET AMERICANS RUN THE SHOW MAKES SENSE HOLLYWOOD KNOWS HOW TO MAKE MOVIES THAT THE WORLD WANTS TO WATCH A SYMBOLIC WATERSHED WAS LAST YEAR'S BRISK WORLDWIDE BUSINESS FOR PARAMOUNT COMMUNICATIONS INC'S WAYNE'S WORLD A COMPLETELY INSIDE LOOK AT AMERICAN TEENAGERS FILLED WITH NEARLY INCOMPREHENSIBLE SLANG DEVOID OF STARS AND BASED ON A LATENIGHT AMERICAN TV SHOW THE FILM TURNED OUT TO TRANSLATE ALMOST AS EASILY AS ARNOLD AND SYLVESTER WITH THE HELP OF VIACOM INC'S HIP MTV NOW TELEVISED THROUGHOUT THE WORLD TEENAGERS EVERYWHERE SEEMED TO RELATE TO WAYNE AND GARTH THE STATELY DRIVING MISS DAISY ALSO WAS A BIG HIT OVERSEAS AND THIS YEAR'S FOREIGN PHENOMENON HAS BEEN THE BODYGUARD A CRITICALLY SAVAGED DRAMA WITH HIGHEST APPEAL AMONG WOMEN HOOK BEAUTY AND THE BEAST PRETTY WOMAN GHOST AND HOME ALONE ALL PLAYED WELL FROM KANSAS CITY TO KUALA LUMPUR THERE'S A FASCINATION WITH EVERYTHING AMERICAN WHETHER YOU'RE TALKING COKE OR WAYNE AND GARTH SAYS ARTHUR COHEN PARAMOUNT'S PRESIDENT OF WORLDWIDE MARKETING THE AMERICANIZATION OF THE WORLD SHOWS NO SIGNS OF STOPPING THE AMERICANIZATION OF THE WORLD THOUGH SHOULDN'T OBSCURE A TREND THAT'S JUST AS REAL ALBEIT MORE SUBTLE THE INTERNATIONALIZATION OF AMERICAN MOVIES TO MAKE A HIT FILM THESE DAYS IT HELPS TO MAKE SURE IT HAS TRULY GLOBAL APPEAL CONSIDER LAST YEAR'S UNIVERSAL SOLDIER PRODUCER DANIEL MELNICK TOOK THE SCRIPT A VIOLENT ACTIONPACKED TWIST ON THE FRANKENSTEIN STORY TO MARIO KASSAR THE FLAMBOYANT LEBANESEBORN COCHAIRMAN OF CAROLCO PICTURES PRODUCER OF SUCH FILMS AS RAMBO AND TERMINATOR MR KASSAR SUGGESTED CASTING MR VAN DAMME AND DOLPH LUNDGREN TWO KARATECHOPPING GUYS WITH ACCENTS WHO HAD BMOVIE REPUTATIONS IN THE US WITHOUT INCLUDING GIANT MARQUEE NAMES THE PRODUCERS MINIMIZED RISKS THE MOVIE WAS BUDGETED FOR A BELOWAVERAGE COST OF UNDER 20 MILLION A DIRECTOR WHO TRIED TO MAKE THE FILM TOO HEAVY WITH POLITICAL THEMES WAS REMOVED THE INTENT FROM THE START WAS TO MARCH THE FILM ACROSS BORDERS PRODUCTION FINANCING CAME FROM FILM DISTRIBUTORS IN TERRITORIES SPANNING THE GLOBE INCLUDING JAPAN FRANCE AND ITALY WHERE CAROLCO HAS STRATEGIC PARTNERS WHO ALSO OWN A PIECE OF THE COMPANY THE STARS ARE BELGIAN AND SWEDISH THE DIRECTOR CINEMATOGRAPHER AND PRODUCTION DESIGNER ARE GERMAN THE FILM'S US DISTRIBUTOR TRISTAR IS OWNED BY SONY MR KASSAR'S FORMULA WORKED THE FILM GROSSED A HEALTHY 35 MILLION IN THE US BUT ITS BIG TAKE WAS OVERSEAS WHERE IT SOLD ABOUT ANOTHER 70 MILLION WORTH OF TICKETS AND IT WILL MORE THAN DOUBLE ITS THEATRICAL REVENUE WITH HOMEVIDEO AND TELEVISION SALES THE SCENARIO THAT CAUSED IT TO BE MADE WAS BASED ON THE EXPECTATIONS OF HOW IT WOULD DO WORLDWIDE SAYS CRAIG BAUMGARTEN ONE OF THE FILM'S PRODUCERS YET UNIVERSAL SOLDIER REMAINS A HOLLYWOOD PRODUCT THE DEALS WERE CUT THE SCRIPT WRITTEN AND THE PRODUCTION SUPERVISED JUST A LOCAL CALL AWAY FROM SUNSET BOULEVARD MR MELNICK AND MR BAUMGARTEN ARE BOTH FORMER STUDIO EXECUTIVES TO BE SURE SUCH AN INCREASED RELIANCE ON OVERSEAS AUDIENCES AND THE FOREIGNERS' GROWING APPETITE FOR HOLLYWOOD FARE IS A DOUBLEEDGED SWORD IT'S GREAT FOR THE BIG STUDIOS WHO CHURN OUT THE KIND OF MOVIES THAT GLOBAL AUDIENCES WILL FLOCK TO BUT IT'S BAD NEWS FOR INDEPENDENT PRODUCTION AND DISTRIBUTION COMPANIES THE RANKS OF WHICH DWINDLED ALARMINGLY IN THE LATE 1980S EVERY TIME THE MUSIC STOPPED THERE WAS ANOTHER CHAIR MISSING SAYS NIGEL SINCLAIR AN ATTORNEY WHO SPECIALIZES IN THE INTERNATIONAL MARKET THE PROBLEM IS THAT THESE INDEPENDENT FIRMS RELIED LARGELY ON OVERSEAS FINANCING NOW THEY ARE SUFFERING BECAUSE FOREIGN INVESTORS HAVE BECOME MORE SOPHISTICATED MORE RISKAVERSE AND MORE EAGER TO CASH IN ON THE INTERNATIONAL EMBRACE OF BIG HOLLYWOOD MOVIES INDEPENDENTS ALSO GOT HIT HARD BY THE BADLOAN PROBLEMS AT FRENCH BANK CREDIT LYONNAIS SA WHICH WAS A MAJOR LENDER TO MANY OF THESE COMPANIES CREDIT LYONNAIS WAS HURT BY 2 BILLION OF LOANS SUNK INTO THE FINANCIALLY TROUBLED METROGOLDWYNMAYER INC FOREIGN FINANCIERS WILL TAKE A CHANCE ON UNIVERSAL SOLDIER OR OTHER MOVIES WITH A STUDIO FEEL TO THEM BUT THEY HAVE TURNED THEIR BACKS ON SOME OF THE MORE INTERESTING SMALLER MOVIES THAT ADDED SO MUCH DIVERSITY TO MOVIEMAKING IN THE PAST PRODUCER ARNOLD KOPELSON PITCHED OLIVER STONE'S PLATOON TO THE MAJOR STUDIOS AND WAS REJECTED WHO EVER HEARD OF WILLEM DAFOE TOM BERENGER AND CHARLIE SHEEN THE VIETNAM WAR A BUMMER SO MR KOPELSON COBBLED TOGETHER 6 MILLION FROM OVERSEAS' AND HOMEVIDEO SOURCES AND THE FILM WENT ON TO WIN 1986 BEST PICTURE OSCAR AT THE ACADEMY AWARDS NOW IF I TRIED TO MAKE A FILM LIKE THAT INDEPENDENTLY IT WOULD COST 30 OR 40 MILLION BECAUSE IT WOULD HAVE TO STAR MICHAEL DOUGLAS STEVEN SEAGAL OR HARRISON FORD SAYS MR KOPELSON ALTHOUGH HE IS AN EXPERT ON FOREIGN FINANCING HE NOW PRODUCES MOVIES UNDER THE UMBRELLA OF TIME WARNER INC'S WARNER BROS THE MARKET HAS CHANGED HE SAYS THE GLOBALIZATION OF THE FILM BUSINESS RAISES OTHER CONCERNS AS WELL ECONOMIC SLOWDOWNS FOR INSTANCE ARE MAGNIFIED WHEN THEY HIT ALL THE MARKETS AT THE SAME TIME ALREADYEXPENSIVE MARKETING CAMPAIGNS TO LAUNCH A NEW FILM MULTIPLY WHEN THE MOVIE OPENS AROUND THE GLOBE AND MOVIE THEATERS IN MOST COUNTRIES NEED MORE SCREENS NOT TO MENTION BASIC REPAIRS TO BE ABLE TO SUPPORT THE KIND OF BOXOFFICE GROWTH HOLLYWOOD IS COUNTING ON MEANWHILE BOTH STUDIOS AND THE REMAINING INDEPENDENTS FACE UBIQUITOUS TRADE BARRIERS WE ARE ETERNALLY BESIEGED EVERYWHERE SAYS MR VALENTI WE ARE CONSTANTLY VIGILANT BUT THE MINUTE YOU KNOCK DOWN A BARRIER IN ONE PLACE IT POPS BACK UP LIKE MEDUSA'S HEAD IN ANOTHER SOUTH KOREA FOR EXAMPLE RECENTLY OPENED ITS BORDERS TO US MOVIES AND IT SWIFTLY BECAME THE WORLD'S SEVENTHLARGEST MARKET FOR AMERICAN FILMS THAT WAS A TRIUMPH MR VALENTI SAYS BUT IT DIDN'T COME UNTIL AFTER OPPONENTS OF LIFTING TRADE RESTRICTIONS BOMBED SOME THEATERS AND RELEASED LIVE SNAKES IN ONE CROWDED MOVIE HOUSE REPTILES AND ECONOMIC DOWNTURNS ASIDE HOLLYWOOD WILL CONTINUE TO FOCUS ON OVERSEAS MARKETS FOR A SIMPLE REASON THAT'S WHERE THE GROWTH IS FOR THE FILMS AND TELEVISION SHOWS THAT THE STUDIOS PRODUCE ACCORDING TO PAUL KAGAN ASSOCIATES THERE ALREADY ARE 805 MILLION TELEVISION HOUSEHOLDS WORLDWIDE INCLUDING ABOUT 93 MILLION IN THE US AND MANY OF THOSE FOREIGN HOMES ARE EAGER TO HAVE THEIR TV HOURS FILLED WITH AMERICAN PROGRAMMING AND THERE ARE STILL HUGE SWATHS OF THE WORLD TO CONQUER FOR INSTANCE WHILE EASTERN EUROPE WAS SUPPOSED TO BE A FERTILE GROUND IMMEDIATELY AFTER COMMUNISM COLLAPSED CURRENCY PROBLEMS AND POLITICAL INSTABILITY HAVE DELAYED THE GLITZ INVASION THE FORMER SOVIET UNION WAS THE TARGET OF A US BOYCOTT OVER COPYRIGHT ISSUES UNTIL RECENTLY LATIN AMERICA IS GROWING IN IMPORTANCE AND INDONESIA WITH THE WORLD'S FOURTHLARGEST POPULATION AND A LARGE MIDDLE CLASS IS BEGINNING TO OPEN UP THE EAGERNESS TO FILL THE FOREIGNMOVIEDISTRIBUTION PIPELINE HAS ALSO PUT PRESSURE ON THE MAJOR STUDIOS TO RELEASE A LOT MORE MOVIES EACH YEAR AND THIS HAS IN TURN FORCED THEM TO RELINQUISH SOME OF THE CONTROL THEY HAVE TRADITIONALLY HAD NO LONGER CAN THEY OWN AND CONTROL EVERY MOVIE FROM THE FIRST DRAFT OF THE SCRIPT TO THE LAST RERUN ON PARAGUAYAN TV THE STUDIOS TODAY FOR THE MOST PART ARE RELEASING ORGANIZATIONS MORE THAN THEY ARE COMPANIES EXPANDING AND DEVELOPING THEIR OWN FILM LIBRARIES SAYS JEFF BERG CHAIRMAN OF INTERNATIONAL CREATIVE MANAGEMENT A MAJOR TALENT AGENCY IF THEY GET AN OUTSIDE FILM FOR DISTRIBUTION AND IF IT MAKES ECONOMIC SENSE THEY'LL FORGO OWNERSHIP ENTERTAINMENTINDUSTRY ATTORNEY PETER DEKOM SAYS THAT WHILE THE STUDIOS ARE TRYING TO RELEASE 20 TO 30 MOVIES A YEAR EVEN THE LARGEST OF THEM CAN'T TRULY CONTROL THE CREATION OF MORE THAN EIGHT TO 12 IT'S TOO DIFFICULT TO ADMINISTRATE AND IT'S TOO EXPENSIVE SO FOR THE OTHER FILMS YOU GO ELSEWHERE HE SAYS THIS CAN TAKE SEVERAL FORMS IN SOME CASES A STUDIO WILL LOOK AT WHAT A MOVIE WILL COST WHAT ITS PROSPECTS SEEM TO BEAND BLINK TWENTIETH CENTURY FOX FOR INSTANCE WORRIED ABOUT THE LAST OF THE MOHICANS AND SOLD OFF THE FOREIGN RIGHTS TO LIMIT ITS RISK THAT TURNED OUT TO BE A MISTAKE AFTER THE MOVIE OPENED TO HUGE BOXOFFICE RESULTS THE REVERSE WAS TRUE ON FOX'S HOFFA IT BOMBED AND THE RISKSHARING TURNED OUT TO BE SMART FOX SAYS IT DOESN'T EXPECT TO SELL OFF FOREIGN RIGHTS AGAIN ANOTHER WAY THE STUDIOS SACRIFICE CONTROL IS TO CEDE IT TO THE TRUE POWERS OF THE BUSINESS THE BIGGEST STARS AND DIRECTORS WITH GLOBAL APPEAL THEY ARE JUST AS EAGER TO TAP INTO OVERSEAS REVENUES AND THE STUDIOS SOMETIMES GIVE IN IF ARNOLD SCHWARZENEGGER CAME TO YOU AND SAID HE'D MAKE A MOVIE BUT HE WAS KEEPING THE FOREIGN RIGHTS WHAT WOULD YOU SAY NO ASKS ONE STUDIO EXECUTIVE JAMES CAMERON DIRECTOR OF THE TERMINATOR FILMS ALIENS AND THE ABYSS RECENTLY HAD FOUR STUDIOS BIDDING TO BE HIS US DISTRIBUTOR FOR A SLATE OF NINE FILMS OVER FIVE YEARS MR CAMERON'S COMPANY LIGHTSTORM HAD GOTTEN FINANCING COMMITMENTS FROM COMPANIES IN GERMANY JAPAN ITALY AND FRANCE MCA'S UNIVERSAL PICTURES TOOK THE REST OF THE WORLD AND SONY GOT MUSIC DISTRIBUTION BUT LIGHTSTORM KEPT OWNERSHIP OF THE FILMS UNDER A STRUCTURE DESIGNED TO PREVENT ITS STUDIO PARTNERS FROM GOBBLING UP ALL THE PROFITS WE'VE MADE USE OF ALL THE PARTS JUST LIKE ESKIMO VILLAGERS DO WITH A WHALE SAYS LARRY KASANOFF LIGHTSTORM'S PRESIDENT HE TALKS ENTHUSIASTICALLY ABOUT THE CREATIVE CONTROL THIS WILL GIVE MR CAMERON WILL THIS MAKE FOR MORE DIVERSITY MR CAMERON WON'T NECESSARILY HAVE TO MAKE MOVIES THAT THE STUDIOS WANT BUT HE BECAME AS POWERFUL AS HE DID BY MAKING FILMS THAT EXCITED THE MASS INTERNATIONAL AUDIENCE SO PERHAPS IT DOESN'T MATTER AND WHILE MR CAMERON WON'T HAVE TO BOW TO HIS FOREIGN BACKERS THEY KNOW THAT HE ALREADY THINKS GLOBALLY WHEN PICKING FILMS TO DO WE DON'T CONSIDER OURSELVES TO BE AMERICAN PRODUCERS SAYS MR KASANOFF FROM HIS OFFICE IN SANTA MONICA CALIF WE ARE WITHOUT A FLAG WE'RE IN THE BUSINESS TO MAKE MOVIES AND MAKE MOVIES FOR THE WORLD MR TURNER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9303260147 930326 DIVIDEND NEWS SHAWMUT REINSTATES COMMON STOCK PAYOUT HARTFORD CONN SHAWMUT NATIONAL CORP REINSTATED ITS QUARTERLY COMMON STOCK DIVIDEND OF 10 CENTS A SHARE AFTER FEDERAL REGULATORS RELAXED RESTRICTIONS IMPOSED ON THE COMPANY DURING ITS FINANCIAL TROUBLES IN 1990 THIS DECISION UNDERSCORES OUR CONTINUING PROGRESS AND THE FACT THAT OUR RECOVERY IS WELL ON THE ROAD TO COMPLETION SAID JOEL ALVORD CHAIRMAN AND CHIEF EXECUTIVE IN OCTOBER 1990 IN THE FACE OF DETERIORATING FINANCIAL PERFORMANCE AND RISING LOANLOSS PROVISIONS REGULATORS REQUIRED SHAWMUT TO GET PERMISSION TO PAY ANY DIVIDENDS THE REGULATORS LIFTED THE RESTRICTION ON SHAWMUT'S PREFERRED STOCK DIVIDENDS WHICH THE COMPANY HAD CONTINUED PAYING LAST DECEMBER THE COMMON STOCK DIVIDEND WAS SUSPENDED IN JANUARY 1991 SHAWMUT HAD 1992 NET INCOME OF 752 MILLION OR 81 CENTS A SHARE AFTER AN 184 MILLION TAX BENEFIT FOR TAXLOSS CARRYFORWARDS 9303260146 930326 WORLD MARKETS TOKYO SHARES JUMP 17 DEFYING EXPECTATIONS LONDON STOCK PRICES DROP ON ECONOMIC ANXIETY A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES IN TOKYO ADVANCED 17 THURSDAY AFTER TWO DAYS OF BACKTRACKING DEFYING EXPECTATIONS FOR SELLING PRESSURE BEFORE FISCAL YEAREND BOOK CLOSINGS NEXT WEDNESDAY LONDON SHARES FELL THOUGH THEY REBOUNDED FROM THE DAY'S LOWS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 4093 POINTS WEDNESDAY RALLIED 31423 TO 1876492 ON FRIDAY THE NIKKEI ROSE 13048 POINTS TO CLOSE THE MORNING SESSION AT 1889540 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 470 MILLION SHARES UP FROM 3563 MILLION SHARES ON WEDNESDAY GAINERS OVERWHELMED LOSERS 785258 THE NIKKEI'S INTRADAY HIGH OF 1887750 WAS ITS HIGHEST LEVEL SINCE SEPT 11 PRICES SHOT UP WHEN THE MARKET OPENED AS FOREIGN INVESTORS TOOK THE LEAD AND WERE JOINED BY INDIVIDUALS AND BASKET ARBITRAGERS WHO DEAL IN INDEXES AND MANY TOKKIN SPECIFIED MONEY TRUSTS AND OTHER INVESTMENT FUNDS WRAPPED UP THEIR VALUATIONS FOR THE CURRENT FISCAL YEAR ON FRIDAY TO HIT THE NIKKEI'S TARGET OF 1934595 THE INDEX'S CLOSING LEVEL MARCH 31 1992 STOCKS WOULD HAVE TO JUMP MORE THAN 580 POINTS OR 3 BUYING INTEREST THURSDAY FOCUSED ON SHARES TIED TO STEPPEDUP INVESTMENT BY THE JAPANESE GOVERNMENT IN SOCIAL INFRASTRUCTURE AS OFFICIALS APPEARED SERIOUS ABOUT INVIGORATING THE SLUGGISH ECONOMY EXPORTERS WERE RELIEVED AS THE YEN RETREATED AGAINST THE DOLLAR AFTER HAVING TOUCHED ALLTIME HIGHS IN RECENT DAYS YEN STRENGTH PINCHES THESE COMPANIES' RETURNS FROM OVERSEAS SALES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 78 POINTS TO 28528 THE FT 30STOCK INDEX GAVE UP 141 POINTS TO 22214 VOLUME WAS 9043 MILLION SHARES COMPARED WITH 7017 MILLION SHARES A DAY EARLIER PRICES REBOUNDED FROM SESSION LOWS ON A LATE ROUND OF BUYING IN THE STOCKINDEX FUTURES MARKET AND ON A FIRM START ON WALL STREET THIS FOLLOWED A DRIFT LOWER FOR MUCH OF THE DAY AS WORRIES ABOUT BRITAIN'S ECONOMIC RECOVERY PROSPECTS AND A LACK OF FURTHER CUTS IN INTEREST RATES MADE INVESTORS RELUCTANT TO COMMIT NEW FUNDS TO STOCKS THE ECONOMIC ANXIETY HEIGHTENED ON THE POTENTIALLY POOR OUTLOOK FOR THE PHARMACEUTICAL SECTOR IN FRANKFURT SHARES ENDED SLIGHTLY LOWER DESPITE A RALLY IN DAIMLERBENZ AFTER IT ANNOUNCED PLANS WEDNESDAY TO BE LISTED ON THE NEW YORK STOCK EXCHANGE THE DAX 30STOCK INDEX FELL 230 POINTS TO 165715 EARLY GAINS ALSO CAME WHEN THE GERMAN BUNDESBANK THE CENTRAL BANK REDUCED ITS THREEDAY TREASURY BILL RATE TO 75 FROM 84 BUT ENTHUSIASM FROM THE AUTO AND RATE MOVES WANED THE TREASURY BILL RATE ISN'T CONSIDERED A GERMAN MONETARY POLICY INDICATOR PARIS STOCKS JUMPED 24 ON STRONG INTEREST BY US INVESTORS OPTIMISM ABOUT FRENCH MONETARY POLICY AND REASSURING SIGNS FROM RUSSIA OF EASED TENSIONS IN ITS POLITICAL STRUGGLE AFTER FRENCH ELECTIONS CONCLUDE SUNDAY INVESTORS EXPECT EUROPEAN INTEREST RATES TO DROP RELATIVELY QUICKLY HELPING CORPORATE INVESTMENT AND DEBT REDUCTION IN SYDNEY A LATE RALLY ERASED EARLY LOSSES AND STOCK PRICES FINISHED MIXED IN HONG KONG LATE PROFITTAKING CUT INTO EARLY GAINS AND LEFT EQUITIES SLIGHTLY HIGHER TAIPEI STOCKS FELL ON LASTMINUTE PROFITTAKING MANILA SHARES SLID ON DISAPPOINTING CORPORATE NEWS SEOUL STOCKS DECLINED DESPITE THE SOUTH KOREAN CENTRAL BANK'S CUT IN REDISCOUNT AND BANK LENDING RATES WHICH HAD ALREADY BEEN FACTORED INTO THE MARKET WHILE INVESTORS WERE JITTERY ABOUT EFFECTS OF GOVERNMENT ANTICORRUPTION MOVES AMONG CORPORATE DEVELOPMENTS IN LONDON WELLCOME PLUNGED 72 PENCE OR 81 TO 818 PENCE 1207 THE PHARMACEUTICAL COMPANY'S PRETAX PROFIT FOR ITS FIRST HALF ENDED FEB 27 JUMPED 33 TO 3246 MILLION 4791 MILLION FROM A YEAR EARLIER BOOSTED BY STRONG SALES OF WELLCOME'S LEADING PRODUCTS COUPLED WITH FAVORABLE EXCHANGERATE MOVEMENTS THE INTERIM DIVIDEND WAS INCREASED 20 TO 48 PENCE A SHARE THOUGH WELLCOME'S PROFIT WAS AT THE HIGH END OF THE MARKET'S EXPECTATIONS SALES GROWTH OF TWO OF ITS KEY PRODUCTS WAS LESS THAN PREDICTED MOREOVER WELLCOME SOUNDED A CAUTION ABOUT ITS MEDIUMTERM EARNINGS OUTLOOK WHICH CAUSED LONDON ANALYSTS TO REDUCE THEIR 1993 EARNINGS ESTIMATES AND PROMPTED A SELLOFF IN THE SECTOR EXTENDING THE PRESSURE ON DRUG STOCKS IN LONDON AND NEW YORK THAT BEGAN WEDNESDAY REUTERS HOLDINGS GAINED 22 PENCE OR 16 TO 1381 2038 THE FINANCIAL INFORMATION COMPANY PLANS TO RESCHEDULE THE DATE FOR ITS FINAL DIVIDEND PAYMENT TO APRIL 5 FROM MAY 4 FOR TAX REASONS TO AVOID A PLANNED REDUCTION OF BRITISH TAX CREDITS ON DIVIDENDS TO HOLDERS THAT TAKES EFFECT APRIL 6 THE PAYOUT WILL BE UNCHANGED AT 159 PENCE A SHARE BUT THE COMPANY DISPUTING A REPORT IN THE FINANCIAL TIMES SAID IT DOESN'T HAVE IMMEDIATE PLANS TO DISTRIBUTE A SPECIAL CASH DIVIDEND RTZ EASED 1 PENCE TO 676 PENCE THE MINING COMPANY IS OFFERING SHAREHOLDERS AN ENHANCED SCRIP DIVIDEND AS AN ALTERNATIVE TO THE FINAL CASH DIVIDEND OF 135 PENCE A SHARE IN THE OFFER NEW ORDINARY SHARES ARE VALUED AT 2025 PENCE A 50 PREMIUM TO THE PAYOUT AND WOULD INCREASE TOTAL SHARES OUTSTANDING 3 INVESTORS WHO WISH TO RECEIVE A CASH PAYOUT INSTEAD OF SHARES MAY EXCHANGE THEM FOR 1925 PENCE EACH IN FRANKFURT BAYERISCHE MOTOREN WERKE ROSE 350 MARKS TO 47150 MARKS 28804 THE AUTO MAKER'S FIRSTQUARTER SALES FELL 64 TO 73 BILLION MARKS 446 BILLION LED BY AN 83 SALES DROP IN GERMANY LAST YEAR SALES TOTALED 3124 BILLION MARKS UP 47 AND PROFIT DECLINED 73 TO 726 MILLION MARKS BMW REITERATED THAT ITS GENERAL BUSINESS WILL CONTRACT IN THE FIRST HALF AND THAT WORLD DEMAND FOR AUTOS WON'T ATTAIN 1992 LEVELS IN ZURICH SANDOZ ROSE 10 SWISS FRANCS TO 2980 FRANCS 196620 THE DRUG AND CHEMICAL COMPANY'S 1992 GROUP PROFIT SURGED 34 TO 15 BILLION FRANCS 9897 MILLION FROM 111 BILLION FRANCS IN 1991 THE LATEST RESULTS AT THE LOW END OF ANALYSTS' ESTIMATES WERE BASED ON INTERNATIONAL ACCOUNTING STANDARDS BUT THE 1991 FIGURES HAVEN'T BEEN REVISED YET THE DIVIDEND WAS BOOSTED A LARGERTHANEXPECTED 34 TO 47 FRANCS A SHARE THE EARNINGS IMPROVEMENT WAS ATTRIBUTED HALF AND HALF TO OPERATIONAL IMPROVEMENTS AND THE ACCOUNTING CHANGE SANDOZ ALSO ANNOUNCED UNEXPECTEDLY THAT CHAIRMAN MARC MORET WILL HAND OVER THE DAILY RUNNING OF THE COMPANY TO DANIEL C WAGNIERE WHO HEADS THE US OPERATIONS SWISSAIR CLIMBED 7 OR 12 TO 580 THE AIRLINE CITING LOWER PARENT COMPANY PROFIT FOR 1992 SAID IT WOULD HALVE ITS DIVIDEND TO 10 FRANCS A SHARE AND TO 2 FRANCS A DIVIDEND RIGHTS CERTIFICATE THE STOCK ROSE AS THE MARKET JUDGED THE PAYOUT REDUCTION WASN'T AS BAD AS IT COULD HAVE BEEN WHILE GROUP PROFIT ROSE 36 TO 113 MILLION FRANCS AIDED BY AIRCRAFT SALES THE PARENT'S EARNINGS FELL 56 TO 208 MILLION FRANCS 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 9303260145 930326 LETTERS TO THE EDITOR DOCTORBASHING GETS US NOWHERE YOU CERTAINLY HAVE JUMPED ON BILL CLINTON'S DOCTORBASHING BANDWAGON RECENT ARTICLES HAVE TOLD US THAT PHYSICIANS ORDER TOO MANY EXAMS DO UNNECESSARY SURGERY ARE OVERSPECIALIZED AND NOW OF COURSE THEY EARN TOO MUCH AS HILLARY AND BILL UNDERSTAND RAISING CLOUDS OF ANIMOSITY TOWARD DOCTORS OFFERS A SMOKE SCREEN FOR THE RADICAL CHANGES THEY PROPOSE REGARDLESS PHYSICIAN FEES ARE ALMOST IRRELEVANT IN THE DEBATE OVER HEALTH CARE COSTS REDUCING PHYSICIAN FEES 19 OF SPENDING WILL NOT EVEN DENT EXPENSES IF THE TOTAL COST THIS YEAR IS ESTIMATED AT 900 BILLION AND WE CUT PHYSICIAN REIMBURSEMENT IN HALF PUTTING 75 OF PHYSICIANS OUT OF BUSINESS THE HEALTH CARE BILL STILL WOULD BE 810 BILLION CUTTING FEES BY A MORE REASONABLE 20 STILL LEAVES US WITH AN 864 BILLION BILL A 4 SAVINGS FINALLY ONE ALSO MUST OBJECT TO PROVIDING SALARIES WITHOUT CONSIDERATION FOR THE NUMBER OF HOURS WORKED INCLUDING BEING ON CALL PHYSICIANS WORK 50 TO 60 HOURS A WEEK EVEN USING INFLATED PROJECTIONS THIS COMES OUT TO 65 AN HOUR MY GARAGE MECHANIC CHARGES MORE BILL AND HILLARY CLINTON HAVE SEIZED THE OPPORTUNITY TO CREATE SCAPEGOATS OF PHYSICIANS IN ORDER TO ENACT SWEEPING CHANGES IN THE DELIVERY OF CARE THE PRESS IS BEING USED TO FURTHER THIS STRATEGY THE PROBLEM IS IN HEALTH CARE THE STAKES OF THIS GAMBIT ARE QUITE HIGH WE MAY RUIN THE BEST HEALTH CARE SYSTEM IN HISTORY THEN THERE WILL BE A HIGH PRICE TO PAY FOR YOUR AND YOUR CHILDREN'S CARE BUT IT WON'T BE REPRESENTED BY PHYSICIANS' FEES 9303260144 930326 WALL STREET OFFICIALS GOT FAT PAY PACKAGES AS '92 PROFITS SOARED COMPENSATIONS FOR GOLDMAN SALOMON EXECUTIVES REFLECT BOOM FOR SECURITIES FIRMS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TWO SENIOR WALL STREET EXECUTIVES RECEIVED MULTIMILLIONDOLLAR PAY PACKAGES FOR LAST YEAR ANOTHER SIGN OF WALL STREET'S CONTINUED BOOM DERYCK C MAUGHAN SALOMON BROTHERS INC CHAIRMAN AND CHIEF EXECUTIVE OFFICER RECEIVED 81 MILLION IN SALARY BONUS RESTRICTED SALOMON STOCK AND LONGTERM INCENTIVE COMPENSATION IN 1992 ACCORDING TO A PROXY FILED BY PARENT SALOMON INC MR MAUGHAN ALSO RECEIVED AN ADDITIONAL 283854 FOR A TEMPORARY RESIDENCE AND OTHER RELATED EXPENSES CONNECTED WITH MR MAUGHAN'S RELOCATION TO NEW YORK FROM JAPAN THE PROXY SAYS BUT MR MAUGHAN'S 1992 COMPENSATION PALES NEXT TO ROBERT E RUBIN'S AS COCHAIRMAN OF GOLDMAN SACHS & CO MR RUBIN HAD 1992 INCOME OF 265 MILLION FOR GOLDMAN'S FISCAL YEAR ENDED NOV 30 ACCORDING TO FINANCIAL DISCLOSURE REPORTS MADE PUBLIC BY THE WHITE HOUSE MR RUBIN'S 1992 INCOME REFLECTS HIS SHARE OF GOLDMAN'S PROFITS AS A PRIVATE PARTNERSHIP GOLDMAN DOESN'T DISCLOSE ITS EARNINGS OR EXECUTIVE PAY MR RUBIN WHO STEPPED DOWN AT GOLDMAN TO JOIN THE CLINTON ADMINISTRATION AS THE ASSISTANT TO THE PRESIDENT FOR ECONOMIC POLICY HAS EXCHANGED HIS PARTNERSHIP PROCEEDS FROM GOLDMAN BELIEVED TO BE ABOUT 80 MILLION FOR A JUNIOR SUBORDINATED DEBENTURE MR RUBIN DECLINED TO COMMENT AS DID GOLDMAN THE FAT PAY PACKAGES REFLECT WALL STREET'S RECENT PROFIT EXPLOSION THE NATION'S SECURITIES FIRMS REPORTED RECORD PRETAX PROFIT OF 618 BILLION IN 1992 AMID A FLOOD OF FEES FROM TRADING COMMISSIONS AND UNDERWRITING NEW STOCK AND BOND ISSUES BOTH SALOMON AND GOLDMAN HAD RECORD 1992 PRETAX PROFIT MR MAUGHAN'S 1992 PAY PACKAGE INCLUDES 2 MILLION IN SALARY AND BONUS RESTRICTED SALOMON STOCK THAT THE FIRM VALUED AT 27 MILLION AND 34 MILLION FROM A DEFERREDPAY PLAN THAT VESTED THROUGH DEC 31 1991 IN 1991 MR MAUGHAN EARNED 21 MILLION IN CASH AND RESTRICTED STOCK HE DECLINED TO COMMENT SALOMON DECLINED TO COMMENT ON ITS EXECUTIVE PAY BUT THE PROXY SAYS SALOMON'S EXECUTIVE COMPENSATION LINKS THE INTERESTS OF MANAGEMENT WITH THOSE OF OWNERS AND NOTES THAT ITS RESTRICTEDSTOCK AWARDS CAN'T BE CASHED IN FOR FIVE YEARS FOUR OTHER SENIOR SALOMON EXECUTIVES ALSO RECEIVED HANDSOME 1992 PAY PACKAGES ANDREW J HALL A SALOMON EXECUTIVE VICE PRESIDENT AND CHAIRMAN OF SALOMON'S PHIBRO ENERGY DIVISION EARNED 17 MILLION IN CASH AND RESTRICTED STOCK THE PROXY SAID MR HALL ALSO EXERCISED OPTIONS ON 166000 SHARES OF SALOMON STOCK VALUED AT 25 MILLION THE PROXY SAID BRINGING HIS TOTAL 1992 INCOME TO 42 MILLION IN 1991 MR HALL RECEIVED 25 MILLION THE PROXY SAID JOHN G MACFARLANE SALOMON'S TREASURER HAD 1992 INCOME OF 26 MILLION IN SALARY BONUS RESTRICTED STOCK AND LONGTERM INCENTIVE PAYOUTS THE PROXY SAID MR MACFARLANE ALSO EXERCISED OPTIONS ON 13800 SALOMON SHARES VALUED AT 242088 IN 1991 MR MACFARLANE EARNED 12 MILLION JAMES L MASSEY A SALOMON SENIOR MANAGING DIRECTOR HAD 1992 INCOME OF 67 MILLION 5 MILLION OF WHICH WAS FROM A DEFERREDCOMPENSATION PLAN THAT VESTED THROUGH DEC 31 1991 THE PROXY SAID MR MASSEY WHO OVERSEES SOME OF THE FIRM'S TROUBLED INVESTMENTS EARNED 19 MILLION IN 1991 THE PROXY SAID AMONG THE LOWEST PAID SENIOR SALOMON EXECUTIVES ROBERT E DENHAM SALOMON INC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR DENHAM SALOMON'S FORMER GENERAL COUNSEL WHO WAS NAMED TO THE CEO POST IN JUNE HAD 1992 INCOME OF 13 MILLION IN SALARY AND RESTRICTED SALOMON STOCK AMONG OTHER THINGS THE PROXY SAID 9303260143 930325 GLOBAL ENTERTAINMENT A SPECIAL REPORT HOLLYWORLD OPEN WIDE STUDIOS TRY TO CAPITALIZE ON US BUZZ' BY LAUNCHING MOVIES GLOBALLY BY THOMAS R KING THE GIANT SEARCHLIGHTS PIERCING THE CLOUDS TO HYPE A MAJOR HOLLYWOOD MOVIE PREMIERE CAN NOW BE SEEN TENS OF THOUSANDS OF MILES AWAY STUDIOS USED TO OPEN MOVIES IN THE US AND THEN PERHAPS SIX MONTHS LATER ALMOST LEISURELY BEGIN TO OPEN THEM AROUND THE WORLD A REGION OR COUNTRY AT A TIME BUT INCREASINGLY STUDIOS ARE LAUNCHING MOVIES GLOBALLY IN AN EFFORT TO CAPITALIZE ON THE HEAT GENERATED IN AMERICA WITH VIEWERS WORLDWIDE CATCHING FOOTAGE OF US MOVIE PREMIERES ON SUCH GLOBAL CABLE NETWORKS AS VIACOM INC'S MTV THE BUZZ ON FILMS NOW CROSSES CONTINENTS MORE QUICKLY THAN EVER CAPITALIZING ON PUBLICITY IN LOS ANGELES CAN OFTEN LEAD TO HIGHER GROSSES IN MELBOURNE THE WORLD IS GETTING SMALLER AND INFORMATION TRAVELS FASTER SAYS BARRY LONDON PRESIDENT OF THE MOTIONPICTURE GROUP AT PARAMOUNT PICTURES A UNIT OF PARAMOUNT COMMUNICATIONS INC IF A FILM IS SUCCESSFUL IN THE US THEY KNOW ABOUT IT IN TIMBUKTU A QUICK START AT US THEATERS HAS THE POTENTIAL TO JUMPSTART A FILM'S INTERNATIONAL RUN HE SAYS A FEW GOOD MEN OPENED IN MORE THAN 20 COUNTRIES WITHIN A MONTH OF ITS BALLYHOOED US OPENING HOME ALONE 2 LOST IN NEW YORK WAS OPENED THROUGHOUT THE WORLD IN JUST A FEW WEEKS' TIME THE BODYGUARD AND CAPE FEAR HAD NEARLY SIMULTANEOUS OPENINGS IN THE US AND JAPAN AS WILL JURASSIC PARK THIS SUMMER BUT A GLOBAL DEBUT IS POSSIBLE ONLY IF A FILM IS COMPLETED EARLY ENOUGH FOR STUDIOS TO PREPARE SUBTITLED VERSIONS AND MASSAGE MARKETING CAMPAIGNS FOR LOCAL MARKETS J EDWARD SHUGRUE PRESIDENT OF SONY CORP'S INTERNATIONALDISTRIBUTION OPERATIONS SAYS THE COMPANY WAS LUCKY WITH A FEW GOOD MEN BECAUSE INDEPENDENT FILMMAKER CASTLE ROCK ENTERTAINMENT DELIVERED IT MONTHS BEFORE ITS SCHEDULED OPENING EVEN UNDER THE BEST CIRCUMSTANCES IT TAKES A STUDIO 60 DAYS TO DUB MOVIES INTO FOUR LANGUAGES SPANISH FRENCH GERMAN AND ITALIAN AND MAKE SUBTITLES FOR MANY OTHER LANGUAGES WE REALIZE THAT SOONER IS BETTER BUT WE'RE NOT IN ANY HURRY TO MAKE MISTAKES EITHER MR SHUGRUE SAYS THE HARSH REALITY MOVIES HAVE A TENDENCY TO BE DELIVERED LATE RATHER THAN EARLY HE SAYS WHAT'S MORE SEASONAL CONSIDERATIONS WILL ALWAYS AFFECT WORLDWIDE OPENINGS SUMMER FOR EXAMPLE WILL NEVER BE AN IDEAL TIME TO OPEN A FILM IN MANY EUROPEAN COUNTRIES BECAUSE THE NATIVES PACK UP AND GO ON VACATION AND THERE'S A LOGISTICAL CHALLENGE AS THE STARS OF A FILM WHO INCREASINGLY ARE AGREEING TO FOREIGN TRAVEL TO PROMOTE THEIR FILMS CAN ONLY BE IN ONE PLACE AT A TIME THE DISTRIBUTORS OF LAST YEAR'S 1492 CONQUEST OF PARADISE FACED A THORNY PROBLEM BECAUSE THEY WERE DESPERATE FOR THE ADDED PUBLICITY THAT WOULD COME BY OPENING THE MOVIE AROUND THE WORLD CLOSE TO COLUMBUS DAY DENNIS DAVIDSON WHO HEADS HIS OWN FIRM SPECIALIZING IN INTERNATIONAL FILM PUBLICITY SAYS THAT THE FILM'S STAR GERARD DEPARDIEU AND RIDLEY SCOTT ITS DIRECTOR SPENT THE BETTER PART OF 10 DAYS ON PLANES THE TWO WERE WERE ON HAND FOR THE US OPENING ON OCT 8 AS WELL AS FOR THE SOONAFTER PREMIERES IN PARIS ROME MUNICH MADRID AND FINALLY LONDON ON THE 19TH WE LITERALLY DID A WHISTLESTOP TOUR MR DAVIDSON SAYS ADDING THAT MANY COUNTRIES HAD TO SETTLE FOR A LOOSE COLUMBUS WEEK TIEIN THE MOVIE BOMBED IN THE US AND IN ITALY BUT DID WELL IN FRANCE GERMANY AND SPAIN DIRECTORS AND SUPPORTING ACTORS OFTEN ARE USED TO FILL THE GAPS TO PROMOTE CAROLCO PICTURES INC'S BASIC INSTINCT DIRECTOR PAUL VERHOEVEN AND ACTRESS JEANNE TRIPPLEHORNE EVEN WENT TO TAIWAN AND SOUTH KOREA MARKETS RARELY VISITED BY MOVIE CELEBRITIES THE LOCAL MEDIA WENT ABSOLUTELY CRAZY AND THE BOX OFFICE WAS HUGE SAYS MR DAVIDSON AUDIENCES ABROAD WANT TO SEE HITS AS AMERICANS ARE WATCHING THEM IN JAPAN MOVIE ADS FOR WAYNE'S WORLD AND HOME ALONE EVEN PUSH THE NEWS OF THE ASTRONOMICAL OPENING BOXOFFICE GROSSES FOR THOSE MOVIES IN THE US TRYING TO SEDUCE MOVIEGOERS TO GET IN ON THE ACTION NEARSIMULTANEOUS OPENINGS ALSO REDUCE THE RISK OF FILM PIRACY AND BOOTLEGGED VIDEOCASSETTES THAT OFTEN ARE AVAILABLE ON STREET CORNERS EVEN BEFORE A FILM APPEARS AT THE LOCAL CINEMA STILL STUDIOS SAY THEY WILL CONTINUE TO SHY AWAY FROM WORLDWIDE OPENINGS ON MOVIES THAT THEY BELIEVE WILL BE TRICKY TO MARKET IF THEY GO SLOWLY STUDIOS SAY THEY CAN LEARN FROM THE MISTAKES MADE DOMESTICALLY OR EVEN IN THE FIRST FEW INTERNATIONAL MARKETS FOR A MOVIE THAT NOBODY KNOWS ABOUT I THINK TWO MONTHS AFTER THE US OPENING IS AS CLOSE AS YOU WANT TO GET SAYS DAVID GROSS VICE PRESIDENT OF MARKETING AND DISTRIBUTION AT TWENTIETH CENTURY FOX'S INTERNATIONAL OPERATIONS THAT'S SHORTER THOUGH THAN THE OLD SIXMONTH RULE HE SAYS WHEN THE ATTITUDE WAS TAKE YOUR TIME RELAX COLUMBIA'S HERO A COMEDY STARRING DUSTIN HOFFMAN AND GEENA DAVIS DIED QUICKLY WHEN IT OPENED IN THE US LAST OCTOBER AND IS JUST STARTING TO APPEAR IN MOST OTHER COUNTRIES THE LAG ALLOWED THE STUDIO TO EXAMINE WHAT WENT WRONG AND TO MAKE CHANGES IT GAVE THE MOVIE A NEW TITLE ACCIDENTAL HERO AND PITCHED IT MORE AS A SATIRE THAN AS A STRAIGHT COMEDY INITIAL OVERSEAS AUDIENCES ARE SO FAR RESPONDING TO THE NEW PITCH ITS OPENING IN AUSTRALIA A MARKET THAT TYPICALLY MIRRORS THE US WAS STRONG THE OPENING WEEKEND PERSCREEN AVERAGE WAS TWICE THAT OF THE US FOR THE QUIRKY EDWARD SCISSORHANDS FOX OPENED THE FANTASY ONE COUNTRY AT A TIME FINETUNING THE MARKETING AS IT WENT ALONG FOX EXECUTIVES BELIEVE THEY FINALLY GOT IT RIGHT BUT NOT UNTIL THE END OF THE MOVIE'S INTERNATIONAL RUN IT WAS VERY TOUGH TO COMMUNICATE TO THE PUBLIC THAT THIS WASN'T 'FRANKENSTEIN' SAYS WALTER SENIOR FOX'S INTERNATIONAL CHIEF WE HAD TO TELL PEOPLE THAT THIS WASN'T A HORROR MOVIE THAT IT REALLY WAS A CHARMING STORY IT WAS A BIG DISAPPOINTMENT IT SHOULDN'T HAVE MADE AS LITTLE AS IT DID MR KING IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9303260142 930326 MONEY FUND ASSETS ADVANCE 154 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE BY 154 BILLION TO 5944 BILLION FROM 59286 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 624 RETAIL MONEY MARKET MUTUAL FUNDS DECREASED BY 948 MILLION TO 39329 BILLION THE TRADE GROUP SAID ASSETS OF 390 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 6621 MILLION TO 31048 BILLION ASSETS OF 234 RETAIL TAXEXEMPT FUNDS FELL BY 2859 MILLION TO 8281 BILLION ASSETS OF THE 269 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 248 BILLION TO 20111 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 219 TAXABLE MONEY MARKET FUNDS GREW BY 267 BILLION TO 18015 BILLION ASSETS OF 50 TAXEXEMPT FUNDS FELL BY 1869 MILLION TO 2095 BILLION 9303260141 930326 MARKETING & MEDIA SPORTS ILLUSTRATED SETS CANADIAN EDITION BUT MAGAZINE PUBLISHERS THERE CALL FOUL BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA IN A MOVE THAT HAS PROVOKED AN UPROAR AMONG CANADIAN MAGAZINE PUBLISHERS SPORTS ILLUSTRATED IS BRINGING OUT NEXT WEEK A CANADIAN EDITION TO COMPETE FOR CANADIAN ADVERTISING DOLLARS THE TIME WARNER INC PUBLICATION IS SKIRTING CANADIAN REGULATIONS THAT PREVENT US AND OTHER FOREIGN MAGAZINES FROM OFFERING DISCOUNTED RATES TO CANADIAN ADVERTISERS THROUGH REGIONAL ISSUES AIMED AT A CANADIAN AUDIENCE CANADIAN MAGAZINE PUBLISHERS SAY THAT IF SPORTS ILLUSTRATED IS SUCCESSFUL IT WILL OPEN THE DOOR TO A FLOOD OF OTHER US MAGAZINES TRYING TO MOVE INTO CANADA'S ADVERTISING MARKET IF THAT HAPPENS IT WILL MEAN THE END OF THE CANADIAN MAGAZINE INDUSTRY SAID CATHERINE KEACHIE EXECUTIVE DIRECTOR OF THE CANADIAN MAGAZINE PUBLISHERS ASSOCIATION AT ISSUE ARE CANADIAN TARIFF RULES THAT PROHIBIT FOREIGN MAGAZINES FROM SHIPPING TO CANADA REGIONAL ISSUES THAT CONTAIN THE SAME EDITORIAL CONTENT BUT SUBSTITUTE CANADIAN ADS FOR SOME FOREIGN ONES SPORTS ILLUSTRATED CLAIMS IT ISN'T BREAKING THE RULE BECAUSE ITS CANADIAN EDITION WILL BE PRINTED IN TORONTO SPORTS ILLUSTRATED GENERAL MANAGER ALVARO SARALEGUI SAID THE CANADIAN EDITION WILL CONTAIN SPECIAL CANADIAN ARTICLES THE FIRST ISSUE WILL BE ON NEWSSTANDS MARCH 30 LIKE ITS US COUNTERPART IT WILL BE A BASEBALL PREVIEW EDITION BUT IT WILL HAVE A DIFFERENT COVER AND EXPANDED COVERAGE OF THE MONTREAL EXPOS AND THE TORONTO BLUE JAYS THE WEEKLY MAGAZINE PLANS ONLY SIX CANADIAN ISSUES THIS YEAR BUT EVENTUALLY INTENDS TO INCREASE THE NUMBER IN WEEKS WHEN THE CANADIAN ISSUE ISN'T AVAILABLE CANADIANS WILL BE OFFERED THE US ISSUE THE CANADIAN MAGAZINE INDUSTRY CLAIMS THAT SPORTS ILLUSTRATED IS TRYING TO SIPHON OFF AD REVENUES FROM FINANCIALLY PRESSED CANADIAN PUBLICATIONS IT HAS URGED THE CANADIAN GOVERNMENT TO TAKE ACTION AGAINST THE COMPANY THIS ISN'T GOING TO BE A CANADIAN SPORTS MAGAZINE SAID MS KEACHIE OF THE CANADIAN MAGAZINE PUBLISHERS ASSOCIATION IT'S GOING TO BE A FOREIGN MAGAZINE WITH CANADIAN ADS HAVING A FEW PAGES OF CANADIAN EDITORIAL SIX TIMES A YEAR DOESN'T CHANGE THAT SHE SAID THE GOVERNMENT IS MONITORING THE SITUATION BUT WON'T DECIDE WHAT ACTION IF ANY TO TAKE UNTIL IT SEES THE FIRST ISSUE OF SPORTS ILLUSTRATED CANADA SAID OTTO JELINEK THE CABINET MINISTER RESPONSIBLE FOR ADMINISTERING THE CANADIAN REGULATIONS CANADIAN LEGISLATION ALLOWS THE CUSTOMS DEPARTMENT TO SEIZE THE NEXT FOUR ISSUES OF ANY FOREIGN MAGAZINE THAT VIOLATES THE RULES THE REGULATIONS ALONG WITH OTHER SOCALLED CULTURAL POLICIES WERE EXCLUDED FROM THE 1989 USCANADA FREE TRADE AGREEMENT SPORTS ILLUSTRATED CANADA WILL OFFER A FULL PAGE AD FOR THE US EQUIVALENT OF 5027 COMPARED WITH 127600 FOR A FULL PAGE IN THE US EDITION THE MAGAZINE HAS ABOUT 145000 CANADIAN SUBSCRIBERS AND MORE THAN THREE MILLION READERS IN THE US THE CANADIAN MAGAZINE'S FULL PAGE AD RATE WILL BE LESS THAN A QUARTER OF THAT OF MACLEAN'S CANADA'S MAIN NEWSWEEKLY MAGAZINE WHICH HAS A CIRCULATION OF 565900 MACLEAN'S CHARGES 26295 CANADIAN DOLLARS US21160 A PAGE HARROWSMITH A CANADIAN COUNTRY LIVING MAGAZINE WHICH HAS A CIRCULATION OF ABOUT 154600 CHARGES C7685 A PAGE MS KEACHIE ESTIMATED THAT JUST A 3 SHIFT IN AD REVENUES FROM CANADIAN MAGAZINES TO US MAGAZINES WOULD WIPE OUT THE CANADIAN INDUSTRY'S EARNINGS CANADIAN MAGAZINE PUBLISHERS HAD CUMULATIVE EARNINGS OF C182 MILLION ON ADVERTISING REVENUES OF C567 MILLION IN 1991 TIME MAGAZINE ANOTHER TIME WARNER PUBLICATION IS EXEMPT FROM CANADA'S TARIFF REGULATIONS BECAUSE ITS CANADIAN OPERATIONS PREDATE THE RULES BUT CANADIAN MAGAZINE PUBLISHERS HAVE FOUGHT MOVES BY OTHER US PUBLICATIONS TO TAP THE CANADIAN ADVERTISING MARKET COUNTRY LIVING A HEARST CORP PUBLICATION RECENTLY WAS REPRIMANDED BY THE CANADIAN GOVERNMENT BECAUSE ITS FEBRUARY ISSUE CONTAINED A CANADIAN ADVERTISING INSERT COUNTRY LIVING APOLOGIZED AND SAID IT WOULDN'T DO IT AGAIN SAID MR JELINEK THE CABINET MINISTER 9303260140 930326 GRUBB IS HIT BY 113 MILLION JUDGMENT FROM JURY IN AN INDUSTRIALPARK CASE BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO A FLORIDA JURY HAS HIT GRUBB & ELLIS CO AND ITS FLORIDA UNIT WITH AN 113 MILLION JUDGMENT INCLUDING 7 MILLION IN PUNITIVE DAMAGES AFTER FINDING THAT GRUBB & ELLIS MISMANAGED AN INDUSTRIAL PARK AND DEFRAUDED ITS OWNERS GRUBB & ELLIS SAID IT WILL APPEAL THE VERDICT AND THE AMOUNT OF THE AWARD HOWEVER THE COMPANY SAID THAT IF THE AWARD STANDS OR IF GRUBB & ELLIS IS REQUIRED TO POST BOND BEFORE APPEALING IT COULD HAVE A MATERIAL ADVERSE EFFECT ON THE COMPANY IT DIDN'T ELABORATE THE SUIT WAS FILED IN STATE COURT IN FORT LAUDERDALE BY CE PICKERING INVESTMENTS INC THE INVESTMENT VEHICLE FOR THE DESCENDANTS OF A CANADIAN FAMILY THAT BUILT A SUBSTANTIAL FORTUNE ON THE SUCCESS OF A SPOT REMOVER INVENTED DECADES AGO BY CE PICKERING THE NOWDECEASED FAMILY PATRIARCH THE DESCENDANTS OWN LAUDERDALE LAKES INDUSTRIAL PARK IN BROWARD COUNTY NEAR FORT LAUDERDALE ACCORDING TO EVIDENCE SUBMITTED DURING THE TRIAL THE PARK A 22BUILDING INDUSTRIAL WAREHOUSE COMPLEX SPREAD OUT OVER 30 ACRES HAD POSITIVE CASH FLOW 90 OCCUPANCY AND A VALUE OF ABOUT 18 MILLION WHEN GRUBB & ELLIS WAS HIRED IN JUNE 1990 TO MANAGE THE PROPERTY THE PLAINTIFFS ALLEGED THAT GRUBB & ELLIS ONE OF THE NATION'S LARGEST REAL ESTATE MANAGEMENT CONCERNS BUNGLED THE JOB THEY ARGUED THAT GRUBB & ELLIS'S INEPT HANDLING OF TENANTS LED MANY TO LEAVE DRIVING OCCUPANCY RATES DOWN TO ABOUT 73 AND DRAINING CASH FLOW MOREOVER THE PLAINTIFFS CLAIMED THAT GRUBB & ELLIS WAS MONTHS LATE IN INSTALLING A COMPUTER SYSTEM IT HAD PROMISED FOR MONITORING AND AUDITING OPERATIONS THEY ALSO ACCUSED GRUBB & ELLIS OF CONCEALING THE PROPERTY'S DETERIORATION FROM THE FAMILY AND ITS REPRESENTATIVES GRUBB & ELLIS CONCEDES THAT IT DELIVERED THE COMPUTER SYSTEM LATE BUT INSISTED THAT MOST OF THE TENANTS WHO LEFT HAD DECIDED TO DO SO BEFORE IT GOT INVOLVED IN THE PROJECT THE COMPANY DENIED ALL ALLEGATIONS OF FRAUD OR MISMANAGEMENT IT BLAMED THE LOUSY ECONOMY FOR THE PARK'S PROBLEMS THE AWARD COMES AT A TOUGH TIME FOR GRUBB & ELLIS WHICH IN FEBRUARY UNDERWENT A DEBT RESTRUCTURING AND BROUGHT IN NEW MANAGEMENT ITS ENTIRE BOARD RESIGNED AT THE TIME THE COMPANY ALSO HAS SUSTAINED LOSSES IN RECENT QUARTERS BECAUSE OF THE PERSISTENT COMMERCIAL REAL ESTATE SLUMP IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY GRUBB STOCK WAS QUOTED AT 5875 DOWN 25 CENTS 9303260139 930326 ITS RESTRUCTURING COMPLETE LEANER KHD CLAIMS AN ADVANTAGE AS RIVALS RETRENCH BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL COLOGNE GERMANY SIX YEARS AGO KLOECKNERHUMBOLDTDEUTZ AG WAS ON THE BRINK OF COLLAPSE SEVERE MISMANAGEMENT SWOLLEN EMPLOYEE RANKS AND STRATEGIC MISTAKES PRODUCING 285 MILLION MARKS 174 MILLION OF OPERATING LOSSES IN 1987 FORCED A DRASTIC MANAGEMENT PURGE AND HARSH RESTRUCTURING PROGRAM NOW PRECISELY BECAUSE OF THAT TROUBLED PAST THE GERMAN MACHINERY AND ENGINEERING CONCERN IS BETTER EQUIPPED FOR THE FUTURE THAN MANY OF ITS COUNTERPARTS CLAIMS KHD CHAIRMAN WERNER KIRCHGAESSER WE SLIMMED DOWN WHEN OTHERS WEREN'T EVEN TALKING ABOUT IT NOW JAPANESE COMPETITION AND THE RECESSION ARE MAKING EVERYONE ELSE STRIVE FOR LEAN MANAGEMENT AND WE ALREADY HAVE IT MR KIRCHGAESSER SAID INDEED WHILE OTHER COMPANIES ARE JUST NOW INSTITUTING PAINFUL JOB CUTS AND CORPORATE STREAMLINING PROGRAMS AS ORDERS COLLAPSE IN THE FACE OF A BITTER RECESSION KHD HAS ALREADY SLASHED ITS WORK FORCE IN HALF SINCE 1987 BOOSTED PRODUCTIVITY BY MORE THAN 50 AND COMPLETED A CORPORATE DECENTRALIZATION TO CREATE NINE STRATEGIC BUSINESS UNITS AS A RESULT MR KIRCHGAESSER NOW SEEMS LESS CONCERNED BY GERMANY'S CURRENT ECONOMIC WOES THAN MANY OTHER GERMAN MANAGERS WHO PROPHESY THE MOST PAINFUL CONTRACTION IN 40 YEARS I SEE THE RECESSION TODAY AS A DIFFICULTY BUT NOT AS ENDANGERING OUR GOALS HE SAYS SIPPING HIS TEA WITH A CALM SMILE RATHER THAN FOCUSING ON COSTCUTTING MR KIRCHGAESSER SAID INNOVATION AND STRENGTHENING FROM WITHIN CAN NOW BE THE CORNERSTONES OF THE COMPANY'S CORPORATE RENEWAL PROGRAM THE MOST SIGNIFICANT MOVE WAS THE START IN 1991 OF A 600 MILLION MARK DIESELENGINE FACTORY IN COLOGNEPORZ DESTINED TO BE THE POWERHOUSE OF THE COMPANY AND THE WORLD'S MOST MODERN FACTORY OF ITS TYPE TO STABILIZE THE COMPANY'S FINANCIAL BASE WHICH WAS SEVERELY DRAINED BY THE RESTRUCTURING PROGRAM MR KIRCHGAESSER WAS ABLE TO PERSUADE A BANK CONSORTIUM TO GUARANTEE AN EQUITYRAISING FOR THE COMPANY BEGINNING TODAY KHD WILL OFFER A 2FOR1 SHARE ISSUE TO ITS HOLDERS TO GAIN 159 MILLION MARKS IN PAIDIN CAPITAL THAT WILL PUMP ITS EQUITY RATIO BACK UP TO 20 FROM THE DANGEROUSLY LOW LEVEL OF AROUND 11 NOW AND WILL HELP BOLSTER INVESTOR CONFIDENCE IN THE GROUP THE SHARES WILL BE PRICED AT 80 MARKS A FAIR DISCOUNT FROM ITS CURRENT PRICE OF 9950 MARKS AND THE SAME LEVEL AS THE RECORD LOW HIT IN 1987 AS THE COMPANY'S NEW FACTORY REACHES FULL CAPACITY ITS SHARE PRICE COULD EASILY RISE AS HIGH AS 250 MARKS TO 400 MARKS KHD MANAGEMENT SAYS THE ONLY HITCH IS THAT THIS CORPORATE BLOSSOMING IS GOING TO BE VERY LONG IN COMING MR KIRCHGAESSER FREELY ADMITS HE WON'T BE IN A POSITION TO THINK ABOUT PAYING SHAREHOLDERS A DIVIDEND UNTIL AT LEAST 1996 AND CONSIDERS HIMSELF LUCKY TO HAVE BROKEN EVEN LAST YEAR AND ANALYSTS NOTE THAT WHILE THE STRUCTURAL CHANGES AT KHD HAVE DONE A TREMENDOUS AMOUNT TO RAISE THEIR OPINION OF THE COMPANY A DIFFICULT RECESSION AND UNCERTAINTY OVER KHD'S ABILITY TO GET ENOUGH ORDERS FOR ITS NEW FACTORY MEAN THEY CONTINUE TO REGARD KHD AS A WALLFLOWER FOR THE TIME BEING THERE'S TREMENDOUS POTENTIAL IN THE STOCK AND IF ALL GOES AS PLANNED THE SHARES COULD EASILY DOUBLE IN VALUE BUT THAT IS ALL FUTURE FANTASY MUSIC AND THE PATH IS STILL LONG AND ROCKY SAID A MACHINERY INDUSTRY ANALYST IN FRANKFURT NOTING THAT INVESTORS HAVE PLENTY OF TIME BEFORE THEY NEED TO RUSH INTO PURCHASING KHD STOCK MR KIRCHGAESSER SAYS THE RECESSION ISN'T CAUSING A SCALEBACK OF CORPORATE GOALS WHICH CALL FOR REVENUE TO GROW ALMOST 50 TO 54 BILLION MARKS BY THE YEAR 2000 BUT ANALYSTS WORRY THAT WHILE THE COMPANY ITSELF MAY BE STRUCTURALLY WELLPREPARED FOR THAT KIND OF GROWTH RECESSIONPOUNDED CUSTOMERS OF KHD WILL CAUSE DISAPPOINTMENT EGGERT KULS OF VEREINS & WESTBANK IN HAMBURG PRAISES THE COMPANY FROM A FUNDAMENTAL VIEW NOTING THAT EACH DIVISION OF THE COMPANY ENGINES INDUSTRIAL PLANT BUILDING AND AGRICULTURAL MACHINERY HAS AN OUTSTANDING MARKET POSITION THE ENGINE DIVISION WHICH PRODUCED THE FIRST FOURSTROKE ENGINE IS ATTRACTIVELY POSITIONED AS THE WORLD'S LEADING MANUFACTURER OF AIRCOOLED DIESEL ENGINES MR KULS NOTES WITH ITS NEW FACTORY TO BUILD WATERCOOLED DIESEL ENGINES AS WELL THE COMPANY WILL BE AT THE FOREFRONT OF THE NEW TECHNOLOGY MAKING ENGINES THAT ARE QUIETER AND MORE ENERGYEFFICIENT AND THAT PRODUCE LESS EMISSIONS BUT EVEN A KHD BULL LIKE MR KULS WARNS THAT BECAUSE OF TRISK THAT CUSTOMERS WON'T SWITCH OVER TO THE WATERCOOLED ENGINE TECHNOLOGY AS FAST AS KHD HOPES HE CAN ONLY RECOMMEND KHD SHARES FOR PURCHASE BY RISKMINDED INVESTORS WITH LOTS OF PATIENCE MR KIRCHGAESSER SAYS THAT SO FAR THE COMPANY HAS 20 FIRM CUSTOMERS THAT HAVE ORDERED 10000 OF THE NEW WATERCOOLED ENGINES THIS YEAR IN 1994 AT LEAST 40000 NEW ENGINES WILL BE PRODUCED AT THE FACTORY AND BY 1998 THE PLANT SHOULD BE RUNNING AT FULL CAPACITY OF 130000 ENGINES A YEAR INDUSTRY EXPERTS NOTE THAT THE MODERN TECHNOLOGY IN THE PLANT WHICH IS FLEXIBLE ENOUGH TO FILL AN ORDER IN AS LITTLE AS THREE WEEKS GIVES KHD A TECHNOLOGICAL JUMP OF TWO TO FOUR YEARS ON THE COMPETITION BECAUSE THE NEW FACTORY DOESN'T PRODUCE BASIC PARTS BUT CONCENTRATES ON HIGHLY SKILLED FINISHING AND CUSTOM ORDERS IT'S APPROPRIATE FOR IT TO BE LOCATED IN WESTERN GERMANY RATHER THAN IN EASTERN EUROPE WHERE THE COMPANY COULD HAVE SAVED AT LEAST 50 OF ITS LABOR COSTS MR KIRCHGAESSER MAINTAINS BUT HE CONCEDES THERE IS A BIG QUESTION MARK WHETHER GERMANY WILL ALWAYS BE THE LOCATION OF CHOICE KHD'S OVERALL PERFORMANCE IN 1992 WAS ENCOURAGING AT LEAST IN RELATIVE TERMS WHILE THE MACHINERY INDUSTRY EXPERIENCED AN AVERAGE 4 DECLINE IN INCOMING ORDERS ACCORDING TO THE GERMAN MACHINE BUILDERS ASSOCIATION KHD ACTUALLY SAW A 1 INCREASE FROM 1991 ESPECIALLY AGAINST THE BACKDROP OF A DEEPENING RECESSION IN GERMANY MR KIRCHGAESSER CITES THAT SUCCESS AS THE FIRST SIGN OF THE HARVEST THE COMPANY WILL REAP FROM ITS STRINGENT RESTRUCTURING IN YEARS PAST A COMPANY THAT CONSCIENTIOUSLY WORKS ON DEVELOPING A COMPETITIVE ADVANTAGE HAS THE ADVANTAGE IN AN ECONOMIC CRISIS HE SAID 9303260138 930326 ENTERPRISE SMALL HOTEL CONCERN CUTS HEALTH BILLS DOWN TO SIZE CAMBERLEY'S SHIFT TO SELFINSURANCE REDUCES PREMIUMS AND TURNOVER BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA MANY SMALL COMPANIES OFFER SKIMPY HEALTH INSURANCE COVERAGE AND INSIST THAT THEIR WORKERS BEAR MOST OF THE COST BUT CAMBERLEY HOTEL CO A SMALL HOTEL MANAGEMENT CONCERN HERE HAS DISCOVERED THAT A HEALTH CARE PLAN COVERING MOST OF ITS NEARLY 600 EMPLOYEES CAN BE HEALTHY FOR BUSINESS ITS PLAN INTRODUCED LAST YEAR COSTS WORKERS A SMALL FRACTION OF WHAT THEY USED TO PAY AND HAS HELPED TO SHARPLY IMPROVE MORALE AND REDUCE TURNOVER OFFICIALS SAY AND AT A TIME OF RISING HEALTH INSURANCE PREMIUMS CAMBERLEY'S INSURANCE EXPENSES HAVE DROPPED THERE MAY BE NO SINGLE SOLUTION IN THE NATIONWIDE DRIVE BY GOVERNMENT AND BUSINESS TO PLUG GAPS IN WORKERS' HEALTH COVERAGE BUT CAMBERLEY'S EXPERIENCE SUGGESTS THAT CAREFUL USE OF EXISTING TOOLS COULD BE AN EFFECTIVE WAY FOR SMALL BUSINESSES TO IMPROVE EMPLOYEES' COVERAGE AND LOWER INSURANCE COSTS UNLIKE MANY SMALL EMPLOYERS CAMBERLEY INSURES ITSELF FOR MOST HEALTH CARE BILLS SELFINSURANCE ALLOWS GREATER FLEXIBILITY BETTER COVERAGE AND GREATER SAVINGS SAYS PARRY GOODMAN PRESIDENT OF BENEFIT MANAGEMENT CORP A BENEFITSPLAN ADMINISTRATOR IN FORT LAUDERDALE FLA CAMBERLEY COVERS CATASTROPHIC INJURIES AND ILLNESSES THROUGH AN OUTSIDE POLICY IN ADDITION THE COMPANY LIMITS COVERAGE FOR INJURIES OR ILLNESSES ARISING FROM CERTAIN DANGEROUS ACTIVITIES OUTSIDE THE WORKPLACE THE RESULT CAMBERLEY WHICH SAYS IT HAS ANNUAL REVENUE OF ABOUT 35 MILLION SPENDS LESS FOR HEALTH CARE COVERAGE HEALTH COSTS NOW REPRESENT ONLY ABOUT 6 OF CAMBERLEY'S TOTAL PAYROLL DOWN FROM 79 IN 1991 AND LESS THAN THE AVERAGE OF 8 TO 14 FOR OTHER HOTEL MANAGEMENT COMPANIES BIG AND SMALL THE COMPANY'S MONTHLY COSTS AVERAGED 140 AN EMPLOYEE LAST YEAR DOWN FROM A HIGH OF ABOUT 142 IN 1991 THAT'S BELOW THE 167 MONTHLY COST PER EMPLOYEE FOR A FULL INSURANCE PLAN IN ATLANTA AND BELOW THE NATIONWIDE AVERAGE MONTHLY COST OF 158 A MONTH ACCORDING TO A SURVEY BY HAY/HUGGINS CO A BENEFITS CONSULTING FIRM IN CHICAGO SMALL COMPANIES HISTORICALLY HAVE PAID DEARLY TO PROVIDE HEALTH CARE COVERAGE FOR EMPLOYEES SAYS MARIE DUFRESNE A HAY/HUGGINS SENIOR VICE PRESIDENT IT IS MORE EXPENSIVE BECAUSE THERE ARE FEWER PEOPLE TO SHARE THE RISK MOREOVER INSURANCE CARRIERS OFTEN POORLY DESIGN PROGRAMS FOR SMALL CORPORATE CLIENTS THERE'S NO MANAGEMENT OF CARE AND THERE'S NO CONTROL OF COST MS DUFRESNE SAYS CAMBERLEY SAYS ITS DIFFERENT APPROACH PARTLY EVOLVED FROM CLOSE MONITORING OF EMPLOYEE NEEDS AT THE FIVE HOTELS IT MANAGES IN ATLANTA TAMPA FLA LOUISVILLE KY AND TORONTO KIMBERLY BAVALI VICE PRESIDENT OF HUMAN RESOURCES SAYS CAMBERLEY SURVEYS ALL ITS WORKERS TWICE A YEAR ABOUT THEIR CONFIDENCE IN THE COMPANY THEIR BENEFITS AND THEIR SUPERVISORS IAN LLOYDJONES THE COMPANY PRESIDENT REGULARLY MEETS WITH A CROSSSECTION OF EMPLOYEES IN EACH CITY TO DISCUSS THEIR PROBLEMS THE INSURANCE PROBLEM SURFACED AT ONE SUCH TALK WITH WORKERS IN LATE 1991 MR LLOYDJONES RECALLS A CHAMBERMAID A SINGLE MOTHER WITH THREE CHILDREN TOLD HIM THAT SHE COULDN'T AFFORD TO PAY THE PREMIUMS FOR THE COMPANYPROVIDED HEALTH INSURANCE MR LLOYDJONES SAYS HE SOON LEARNED THAT MANY EMPLOYEES NEEDING COVERAGE COULDN'T AFFORD TO PAY THE PREMIUMS DEMANDED BY ITS VARIOUS HEALTH PLANS WHICH DIFFERED FROM HOTEL TO HOTEL THE CHAMBERMAID'S COMPLAINT SPURRED A TOP MANAGEMENT REVIEW OF CAMBERLEY'S HEALTH CARE COVERAGE ONE PROBLEM DETECTED WAS A LACK OF CONSISTENCY SOME HOTELS HAD A CONVENTIONAL INSURANCE PLAN WHILE OTHERS OFFERED COVERAGE THROUGH HEALTH MAINTENANCE ORGANIZATIONS ALSO THE QUALITY OF CARE WAS UNEVEN AND THE COST AN AVERAGE OF 142 A MONTH WAS TOO HIGH ESPECIALLY FOR LOWERPAID EMPLOYEES EVERY EMPLOYEE AT EACH HOTEL HAD TO PAY THE SAME PREMIUM FOR A PARTICULAR PLAN REGARDLESS OF ABILITY TO PAY SO IN 1991 CAMBERLEY INTRODUCED A SINGLE PLAN COVERING ALL EMPLOYEES AND SWITCHED TO SELFINSURANCE UNDER THE NEW PROGRAM THE COMPANY DEPOSITS ENOUGH MONEY EACH MONTH IN AN INTERESTBEARING ACCOUNT TO COVER EMPLOYEES' PROJECTED MEDICAL COSTS CAMBERLEY PURCHASED SEPARATE INSURANCE TO PAY FOR CATASTROPHIC CARE SUCH AS FOR PREMATURE BIRTHS CANCER AND AIDS CAMBERLEY HIRED BENEFIT MANAGEMENT TO MANAGE ITS ENTIRE HEALTH INSURANCE PROGRAM THE COMPANY PAYS BENESCRIPT SERVICES INC OF SALT LAKE CITY TO HANDLE PRESCRIPTIONS EMPLOYEES PAY 10 FOR EACH PRESCRIPTION FILLED FOR THOSE REQUIRING MEDICINES ON A LONGTERM BASIS THE COMPANY PROVIDES A MAILORDER DRUG PROGRAM THAT COSTS EMPLOYEES 5 A PRESCRIPTION CAMBERLEY EXECUTIVES SAY THEY ALSO ENCOURAGE EMPLOYEES TO BE SMART CONSUMERS OF HEALTH CARE HUMANRESOURCES STAFF MEMBERS EXPLAIN THE PROGRAM TO EACH NEW WORKER MANY OF WHOM ARE RECENT IMMIGRANTS THE COMPANY ASKS EMPLOYEES TO SHOP AROUND BEFORE CHOOSING A MEDICAL PROVIDER AND REIMBURSES THEM FOR SECURING A SECOND OPINION BEFORE ELECTIVE SURGERY IN ADDITION MANAGERS AND EMPLOYEES AGREED ON A SET OF PRACTICES THAT AREN'T COVERED BY THE HEALTH INSURANCE PLAN INJURIES SUFFERED FROM BUNGEE JUMPING PARACHUTING SKY DIVING AND SCUBA DIVING ARE NOT COVERED NEITHER ARE INJURIES FROM ACCIDENTS IN ALLTERRAIN VEHICLES THERE ALSO IS A 5000 LIMIT ON MEDICAL BILLS FOR INJURIES FROM DRUNKEN DRIVING AND ILLICIT DRUG USE WHY PENALIZE EVERYONE FOR THE WHIMS OF A FEW MR LLOYDJONES ASKS IN RETURN FOR SUCH RESTRICTIONS EMPLOYEES PAY NO MORE THAN 2 OF THEIR BASE SALARY IN ANNUAL PREMIUMS FOR EXAMPLE A MAID EARNING 6 AN HOUR PAYS NO MORE THAN 960 EVERY TWO WEEKS THERE'S EVEN A WEEKLY CAP OF 25 FOR THE HIGHESTPAID WORKERS ABOUT 64 OF EMPLOYEES AT THE COMPANYMANAGED BROWN HOTEL IN LOUISVILLE ENROLLED LAST YEAR UP FROM 45 THE YEAR BEFORE AT THE TERRACE GARDEN HOTEL IN ATLANTA ENROLLMENT ROSE TO 67 IN 1992 FROM 51 IN 1991 AND EMPLOYEE TURNOVER A MAJOR HOTEL INDUSTRY PROBLEM IS SHRINKING AT CAMBERLEY IT DROPPED TO 4 A MONTH AT BROWN FROM ABOUT 46 IN 1991 AND TO 5 FROM ABOUT 57 AT TERRACE INDUSTRYWIDE THE TURNOVER RATE LAST YEAR WAS ABOUT 125 A MONTH EXPERTS NOTE CAMBERLEY'S NEW HEALTH CARE PLAN WASN'T THE ONLY REASON TURNOVER FELL BUT IT IS AN ESSENTIAL COMPONENT IN THE HUMANRESOURCES EQUATION SAYS MR LLOYDJONES HE ADDS WE'RE SETTING A TONE FOR WHAT WE WANT TO OFFER OUR EMPLOYEES 9303260137 930326 WHO'S NEWS PRICOR INC PRICOR INC MURFREESBORO TENN WILLIAM J BALLARD 51 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS OPERATOR OF CORRECTIONAL FACILITIES MR BALLARD WHO WAS THE COMPANY'S TREASURER AND VICE PRESIDENT OF FINANCE UNTIL MAY 1992 AND THEN BECAME CHIEF FINANCIAL OFFICER OF A PRIVATE CONCERN SUCCEEDS HUBERT L MCCULLOUGH WHO RESIGNED MR MCCULLOUGH WILL CONTINUE AS AN ADVISER AND DIRECTOR THE COMPANY SAID THE COMPANY OFFERED NO EXPLANATION FOR THE RESIGNATION 9303260136 930326 FINANCING BUSINESS TELEGLOBE INC TELEGLOBE INC MONTREAL SAID ITS TELEGLOBE CANADA INC UNIT IS FILING A FINAL PROSPECTUS IN ALL PROVINCES OF CANADA FOR A PUBLIC OFFERING OF 125 MILLION CANADIAN DOLLARS US1006 MILLION OF 10YEAR UNSECURED DEBENTURES WITH A COUPON OF 835 THE UNDERWRITING GROUP IS COLED BY RBC DOMINION SECURITIES INC AND NESBITT THOMSON LTD TELEGLOBE CANADA IS CANADA'S SOLE PROVIDER OF OVERSEAS TELECOMMUNICATIONS SERVICES 9303260135 930326 POLITICS & POLICY BOSNIAN MUSLIMS ACCEPT UN'S PEACE FORMULA AGREEMENT PUTS PRESSURE ON SERBS AND ON CLINTON TO FULFILL HIS PROMISES BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BOSNIA'S MUSLIMLED GOVERNMENT ACCEPTED A UNITED NATIONSNEGOTIATED PEACE ACCORD PUTTING SERBIA AND THE CLINTON ADMINISTRATION ON THE SPOT THE LONGAWAITED ACCORD WHICH WOULD DIVIDE BOSNIA INTO 10 ETHNICALLY BASED PROVINCES IS DESIGNED TO END THE BLOODY 11MONTH CIVIL WAR IN THE FORMER YUGOSLAV PROVINCE TO WIN THE SUPPORT OF THE BOSNIAN GOVERNMENT THE CLINTON ADMINISTRATION HAS PRIVATELY MADE SEVERAL STRONG COMMITMENTS TO IT MOST SIGNIFICANTLY THE US HAS PROMISED TO WORK TO LIFT A UN ARMS EMBARGO ON BOSNIA IF BOSNIA'S SERBS FAIL TO SIGN THE ACCORD IT'S TIME NOW FOR CLINTON ADMINISTRATION OFFICIALS TO LIVE UP TO THEIR PROMISES SAID A TOP BOSNIAN OFFICIAL IF THE SERBS DON'T SIGN ON THE ADMINISTRATION COULD HAVE A TOUGH TIME LIVING UP TO SOME OF THOSE PROMISES THE POLITICAL STRUGGLES OF RUSSIAN PRESIDENT BORIS YELTSIN COULD COMPLICATE WASHINGTON'S TASK EVEN FURTHER MR YELTSIN'S OPPONENTS ACCUSED HIM OF SELLING OUT TO THE WEST WHEN HE BACKED SANCTIONS AGAINST SERBIA EARLIER AFTER AN APPEAL FROM RUSSIAN FOREIGN MINISTER ANDREI KOZYREV THIS WEEK THE ADMINISTRATION AGREED TO POSTPONE INDEFINITELY A VOTE AT THE UN SECURITY COUNCIL FOR MILITARY ENFORCEMENT OF THE NOFLY ZONE OVER BOSNIA IF THE SERBS DO SIGN ON THE ADMINISTRATION'S REAL TROUBLES MAY JUST BE STARTING THE PRESIDENT HAS PROMISED TO SEND US TROOPS TO ENFORCE A PEACE AGREEMENT BUT INSIDE THE ADMINISTRATION THERE STILL APPEARS TO BE STRONG DISAGREEMENT ABOUT THE CONDITIONS UNDER WHICH US TROOPS WOULD BE SENT WITH THE PENTAGON INSISTING THAT US FORCES WOULD GO ONLY AFTER PEACE WAS FIRMLY IN PLACE THE BOSNIAN GOVERNMENT IS DEMANDING THAT US TROOPS BE SENT IMMEDIATELY TO BOSNIA ONCE ALL SIDES HAVE SIGNED AND WARN THEY COULD WITHDRAW FROM THE AGREEMENT IF THERE IS ANY DELAY BOSNIA'S CROATIANS FIRST SIGNED THE UNNEGOTIATED ACCORD WEEKS AGO AND SIGNED A REVISED VERSION YESTERDAY ALONG WITH THE BOSNIAN MUSLIMS BOSNIAN SERB LEADER RADOVAN KARADZIC DIDN'T SIGN AND TOLD A NEWS CONFERENCE THAT IF NEW SANCTIONS WERE IMPOSED ON SERBIA WE WOULD LEAVE THE WHOLE CONFERENCE AND GO FOR OUR INDEPENDENCE THE PLAN WOULD REQUIRE THE BOSNIAN SERBS TO GIVE UP SOME OF THE LAND THEY HAVE SEIZED IN WASHINGTON SECRETARY OF STATE WARREN CHRISTOPHER COMMENDED THE BOSNIAN GOVERNMENT FOR MAKING A DIFFICULT AND COURAGEOUS DECISION AND CALLED ON THE SERBS TO END THEIR CAMPAIGN OF ETHNIC CLEANSING US OFFICIALS SAID THEY HAVEN'T IMPOSED A DEADLINE ON BOSNIA'S SERBS TO SIGN THE ACCORD BUT EVERY DAY THE SERBS DELAY WOULD MEAN GREATER INTERNATIONAL SUPPORT FOR NEW SANCTIONS SAID ONE OFFICIAL BOSNIAN OFFICIALS SAID THEY WERE HOPING THAT PRESIDENT CLINTON WOULD RECEIVE BOSNIAN PRESIDENT ALIJA IZETBEGOVIC TODAY ALTHOUGH US OFFICIALS SAID THE MEETING WOULD PROBABLY BE WITH VICE PRESIDENT ALBERT GORE PRESIDENT CLINTON TOUCHED ON THE QUESTION OF THE ARMS EMBARGO WEDNESDAY WHEN HE TOLD CBS NEWS THAT THE US WOULD HAVE TO LOOK AT SOME ACIONS TO TRY TO GIVE THE BOSNIANS A MEANS TO AT LEAST DEFEND THEMSELVES IF THE MUSLIMS SIGNED THE ACCORD AND SERB FORCES DIDN'T WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS SAID THE US MIGHT CONSIDER LIFTING THE ARMS EMBARGO ON BOSNIA IF THE SERBS WERE TO REJECT THE PEACE ACCORD ACCORDING TO PEOPLE CLOSE TO THE BOSNIAN GOVERNMENT THE ADMINISTRATION DETAILED A SEVENPOINT PLAN OF PRESSURE ON THE SERBS AND REWARDS FOR THE BOSNIANS SHOULD THE SERBS FAIL TO SIGN THE SEVEN POINTS INCLUDE WASHINGTON'S PROMISE ON THE ARMS EMBARGO AND THE PROMISE TO LOBBY THE SECURITY COUNCIL FOR MILITARY ENFORCEMENT OF THE NOFLY ZONE PEOPLE IN BOSNIA SAY THE ADMINISTRATION ALSO PROMISED A STRONG STATEMENT OF SUPPORT FOR BOSNIA FROM PRESIDENT CLINTON AND THE PRESIDENT'S LEADERSHIP IN AN INTERNATIONAL CAMPAIGN TO INCREASE POLITICAL AND ECONOMIC PRESSURE ON SERBIA MOREOVER THE US PROMISED TO INCREASE AIRDROPS OF FOOD AND MEDICINE OVER BOSNIA AND TO HELP RAISE FUNDS TO FINANCE THE RECONSTRUCTION OF BOSNIA WHICH HAS BEEN SHATTERED BY THE WAR WINNING UN SUPPORT FOR LIFTING THE ARMS EMBARGO COULD BE THE TOUGHEST OF THOSE POINTS TO FULFILL BRITAIN AND FRANCE WHICH EACH HAVE SEVERAL THOUSAND PEACEKEEPING TROOPS ON THE GROUND HAVE LONG OPPOSED LIFTING THE EMBARGO THEY ARGUE IT WOULD ONLY INCREASE THE KILLING AND ENDANGER THEIR TROOPS AND COULD LEAD TO EVEN GREATER LAND GRABS BY THE SERBS WHILE THE BOSNIANS REARM THE ISSUE IS CONSTANTLY UNDER REVIEW BUT OUR BASIC OBJECTIONS REMAIN SAID A EUROPEAN DIPLOMAT BRITAIN AND FRANCE HOWEVER HAVE RECENTLY SHIFTED THEIR OPPOSITION TO USING NORTH ATLANTIC TREATY ORGANIZATION FORCES TO SHOOT DOWN ANY PLANES THAT VIOLATE THE NOFLY ZONE BUT SO FAR RUSSIA HAS OBJECTED TO THAT IDEA AND IS EXPECTED TO OPPOSE THE LIFTING OF THE ARMS EMBARGO EVEN MORE VEHEMENTLY THE CLINTON ADMINISTRATION MAY THUS QUICKLY FIND ITSELF CAUGHT BETWEEN ITS COMMITMENTS TO THE BOSNIANS AND ITS DESIRE TO SUPPORT MR YELTSIN US OFFICIALS EXPECT TO HAVE GREATER LUCK WINNING SWIFT SECURITY COUNCIL SUPPORT FOR A NEW ROUND OF ECONOMIC SANCTIONS AGAINST SERBIA WHICH BACKS THE BOSNIAN SERBS THAT LIST COULD INCLUDE EXPELLING SERBIAN DIPLOMATS FROM EUROPEAN CAPITALS SEIZING SERBIAN ASSETS ABROAD EXPELLING SERBIA FROM ALL INTERNATIONAL ORGANIZATIONS INCLUDING THE UN AND PLACING UN MONITORS AT SERBIAN BORDER CROSSINGS TO PREVENT ANY LEAKAGE OF THE ECONOMIC EMBARGO ON SERBIA SO FAR HOWEVER BOSNIAN SERBS AND THEIR PATRONS IN BELGRADE HAVE SHRUGGED OFF ALL DIPLOMATIC AND ECONOMIC PRESSURES 9303260134 930326 SEC ADOPTS TOUGH STANCE IN ENFORCING ITS NEW EXECUTIVEPAY DISCLOSURE RULES BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION IS TAKING A TOUGH STANCE IN ENFORCING ITS NEW EXECUTIVEPAY DISCLOSURE RULES AN APPROACH THAT MAY AUGUR EVEN STIFFER REGULATIONS THE NEW RULES REQUIRE US COMPANIES TO TELL INVESTORS MUCH MORE ABOUT HOW THEY REWARD TOP EXECUTIVES SHAREHOLDER PROXY STATEMENTS MUST CONTAIN CHARTS SPELLING OUT COMPENSATION FOR A COMPANY'S FIVE HIGHESTPAID EXECUTIVES PLUS A DETAILED SIGNED EXPLANATION FROM A BOARD'S COMPENSATION COMMITTEE PROXIES PREPARED UNDER THE DISCLOSURE RULES BEGAN TO APPEAR IN JANUARY NOW SEC STAFF MEMBERS ARE CHALLENGING THE PROXIES OF A NUMBER OF MAJOR CORPORATIONS INCLUDING EXXON CORP WASTE MANAGEMENT INC AND FINANCIALSERVICES CONCERNS IN SOCALLED COMMENT LETTERS SENT OVER THE PAST MONTH THE SEC HAS CRITICIZED PRELIMINARY PROXIES FOR FAILING TO TELL SHAREHOLDERS ENOUGH ABOUT EXECUTIVEPAY DECISIONS SOMETIMES BY CITING MINOR TECHNICAL FLAWS BUT IN MANY OTHER CASES THE LETTERS HAVE FAULTED COMPENSATION COMMITTEE REPORTS FOR LACKING ENOUGH DETAIL TO JUSTIFY EXECUTIVE PAY LEVELS PEOPLE HAVE A CHOICE WHETHER TO COMPLY WITH THE COMMISSION'S SUGGESTED PROXY CHANGES SAYS ELISSE WALTER DEPUTY DIRECTOR OF THE SEC'S DIVISION OF CORPORATION FINANCE IN FACT SHE ADDS A BUSINESS CAN WAIT UNTIL NEXT YEAR TO REVAMP ITS COMPENSATION COMMITTEE REPORT BUT THE LETTERS ARE AN INDICATION THAT THE STAFF FEELS THE DISCLOSURE DOESN'T COMPLY WITH THE RULES MS WALTER SAYS BUSINESSES ARE UNLIKELY TO IGNORE THE SEC'S CRITICISMS NOTES ERIC SCOONES A PRINCIPAL WITH CONSULTANTS WILLIAM T MERCER INC IN NEW YORK A FAIR NUMBER OF COMPANIES ARE GETTING SEC COMMENTS ON THEIR PRELIMINARY PROXY STATEMENTS AS A PRACTICAL MATTER COMPANIES FEEL THEY MUST COMPLY WITH THE STAFF COMMENTS IN FACT SOME COMPENSATION ADVISERS ARE WARNING CORPORATE CLIENTS THAT THEY RISK AN SEC ENFORCEMENT ACTION AND PENALTIES IF THEY FAIL TO IMPLEMENT THE COMMISSION'S RECOMMENDATIONS BUT PAY CONSULTANTS FEAR THAT THE SEC'S UNEXPECTEDLY STRONG REACTION TO CERTAIN PROXIES COULD BE A PRECURSER TO TOUGHER PAYDISCLOSURE REGULATIONS FOR EVERYONE THE SEC IS INSISTING ON A GREATER DEGREE OF DETAIL IN THE COMPENSATION COMMITTEE REPORT THAN WHAT MOST COMPANIES HAVE EXPECTED MR SCOONES OBSERVES PETER T CHINGOS WHO HEADS THE EXECUTIVE COMPENSATION CONSULTING PRACTICE AT KPMG PEAT MARWICK SAYS THIS COULD BE A SEEDPLANTING EXERCISE ON THE PART OF THE SEC TO GET THE BUSINESS COMMUNITY READY FOR FULLER DISCLOSURE RULES NEXT YEAR THE COMMISSION HASN'T DECIDED YET WHETHER IT WILL CHANGE OR CLARIFY THE EXECUTIVEPAY DISCLOSURE RULES THAT DECISION WILL BE MADE ON THE BASIS OF A BROAD OVERVIEW OF THIS PROXY SEASON AN SEC SPOKESMAN SAYS THE SEC'S MS WALTER ADDS I CERTAINLY DON'T VIEW IT AS GOING BEYOND THE RULES TO REQUEST A MORE DETAILED EXPLANATION OF EXECUTIVEPAY DECISIONS AMONG OTHER THINGS MS WALTER SAYS COMMISSION OFFICIALS WANT MORE INFORMATION ABOUT WHY DIRECTORS DECIDED TO AWARD EXECUTIVES A CERTAIN NUMBER OF STOCK OPTIONS WHAT ARE THE CIRCUMSTANCES UNDER WHICH YOU GRANTED THEM AND HOW DID YOU DECIDE ON SAY 10000 SHARES SHE ASKS THE SEC ALSO IS ASKING COMPENSATION COMMITTEES TO TELL MORE ABOUT HOW THEY SET EXECUTIVE PAY ON A COMPETITIVE BASIS WE DON'T NECESSARILY REQUIRE THAT YOU NAME THE COMPANIES CONSIDERED COMPETITORS MS WALTER EXPLAINS BUT WHO IS IN THAT GROUP SHE ASKS DID YOU LOOK AT PEOPLE IN YOUR INDUSTRY THIS BECAME A MAJOR STICKING POINT BETWEEN THE SEC AND EXXON ACCORDING TO A SPOKESMAN FOR THE OIL COMPANY EXXON'S PRELIMINARY PROXY SAID EXECUTIVE SALARIES REFLECTED ITS COMPETITIVE POSITION THE SPOKESMAN RECALLS EXXON IMMEDIATELY REVISED THE COMPENSATION COMMITTEE REPORT THE SPOKESMAN SAYS BECAUSE IT IS OUR PRACTICE TO KEEP VERY CLOSE CONNECTIONS WITH THE SEC THE PROXY'S REVAMPED LANGUAGE READS COMPETITIVE ORIENTATION OF SALARY RANGES ARE TARGETED BETWEEN THE MEDIAN AND HIGH END OF SURVEY DATA GIVEN EXXON'S SIZE AND COMPLEXITY RELATIVE TO THE SURVEYED COMPANIES WITHIN THIS FRAMEWORK EXECUTIVE SALARIES ARE DETERMINED BASED ON INDIVIDUAL PERFORMANCE LEVEL OF RESPONSIBILITY AND EXPERIENCE BUT SOME COMPANIES SUCH AS WASTE MANAGEMENT HAVE BEEN PERPLEXED BY CERTAIN SEC QUESTIONS ABOUT THEIR PRELIMINARY PROXIES SOME ARE NOT RELEVANT TO OUR BUSINESS SAYS AN OFFICIAL OF THE OAK BROOK ILL WASTEHANDLING CONCERN FOR INSTANCE THE COMMISSION SUGGESTED THAT WASTE MANAGEMENT DESCRIBE ITS RESTRICTED STOCK PROGRAM FOR EXECUTIVES WE HAVE NONE THE OFFICIAL SAYS IN REACTION THE SEC SPOKESMAN SAYS I CAN'T COMMENT ON A SPECIFIC SITUATION BUT THEY DO TRY TO TAILOR EACH LETTER AS MUCH AS POSSIBLE SEC'S INTENSE SCRUTINY OF PROXIES THIS YEAR SURPRISES SOME OBSERVERS I DIDN'T THINK ANYONE WAS HOME AT THE SEC SAYS JUDITH FISCHER PUBLISHER OF EXECUTIVE COMPENSATION REPORTS A NEWSLETTER IN FAIRFAX STATION VA I AM STUNNED 9303260133 930326 EVIAN IMPORTER CHANGES NAME GREENWICH CONN EVIAN WATERS OF FRANCE INC THE EXCLUSIVE IMPORTER OF EVIAN NATURAL SPRING WATER CHANGED ITS NAME TO GREAT BRANDS OF EUROPE INC THE COMPANY A UNIT OF BSN GROUPE A PARIS FOOD AND BEVERAGE CONCERN ALSO SAID IT WILL ASSUME EXCLUSIVE IMPORTING RIGHTS FOR THE VOLVIC BRAND WHICH INCLUDES STILL SPARKLING AND FLAVORED STILL BOTTLED WATERS VOLVIC IS ONE OF THE LEADING BRANDS OF BOTTLED WATER IN FRANCE 9303260132 930326 THE AMERICAS MARKET SOLUTIONS FILL SOCIALIST VOIDS IN CUBA BY DEROY MURDOCK HAVANA AS THE WEEKEND SUN SETS ON HAVANA'S FADED SKYLINE ABOUT 2000 YOUNG CUBANS GATHER BY THE SEA TO HEAR MONCADA A POPULAR LOCAL BAND ALEXIS ITS LEAD SINGER APOLOGIZES FOR THE DARKNESS CREEPING OVER THE STAGE THERE ARE NO STREET LIGHTS ON BECAUSE WE'RE TRYING TO ECONOMIZE HE TELLS THE THRONGS OF EXCITED FANS BUT WE'LL DO A COMPLETE SHOW ANYWAY SO WHAT YOU CAN'T SEE IMAGINE LATER WITH THE NIGHT PIERCED ONLY BY TWO SMALL ONSTAGE LIGHTS AND A SAXOPHONE SOLO MONCADA'S HORN PLAYER ADVISES THE CROWD TO EAT WHAT YOU CAN FIND POWER BLACKOUTS FOOD EXPEDITIONS AND USING IMAGINATION TO COMPENSATE FOR BARE NECESSITIES HAVE BECOME COMMONPLACE FOR CUBANS TODAY AFTER A RECENT VISIT IT IS AS CLEAR AS THE CUBAN SKIES THAT 34 YEARS OF SOCIALISM THE END OF AID FROM THE FORMER EAST BLOC WITH WHICH CUBA CONDUCTED 80 OF ITS TRADE AND THE 32YEAROLD US ECONOMIC EMBARGO ALL ARE SQUEEZING THIS COUNTRY AS DRY AS A SAND DUNE SUCH BASIC ITEMS AS FOOD SOAP AND CLOTHING ARE INCREASINGLY SCARCE AND SECURING THEM REQUIRES RESOURCEFULNESS HEALTH CARE AND TRANSPORTATION ALSO ARE LIMITED BUT EVEN IN TIGHTLY MONITORED CUBA MARKET SOLUTIONS MANAGE TO FILL SOCIALIST VOIDS EVER SO DISCREETLY THE LATEST EXAMPLE OF THIS IS THE FOOD SPEAKEASY AT ABOUT 1100 ONE SATURDAY NIGHT IN A NEIGHBORHOOD SOME CALL THE BRONX OF HAVANA A YOUNG CUBAN MAN DISCREETLY ASKS A WOMAN ON A STOOP WHO'S GOT FOOD BEHIND THE DOOR TO WHICH SHE POINTS STANDS A YOUNG MAN WHO USHERS THREE CUBAN FRIENDS AND ME INSIDE AND SWIFTLY SHUTS THE DOOR BEHIND US THIS IS NO RESTAURANT BUT A PRIVATE HOME WHERE UP TO FOUR PEOPLE CAN DINE ON A CARD TABLE COMPLETE WITH STRAW PLACE MATS AS WE EAT A VERY TASTY SPICY AND ILLEGAL DINNER OF RICE BEANS AND A PORK CUTLET MY BEST MEAL IN CUBA TO THIS POINT THE FAMILY WATCHES A HOLLYWOOD MOVIE ON CUBAN TV MEANWHILE ONE OF THE SONS PUMPS AIR INTO A FLAT BICYCLE TIRE THESE FOOD SPEAKEASIES OFFER A BLACKMARKET SUPPLY OF NUTRITION AND RECREATION BOTH OF WHICH ARE LIMITED BY THE OFFICIAL MONTHLY FOOD RATION OF SIX POUNDS EACH OF RICE AND BEANS PLUS TWO EGGS OUR MEAL ONE OF MY FRIENDS SAYS EITHER WAS BORROWED BY STAFFERS AT A TOURIST HOTEL OR PURCHASED FROM ENTERPRISING FARMERS WHO ILLEGALLY SELL SURPLUS OUTPUT TO HAVANANS DINNER FOR FOUR INCLUDING A BEER EACH TOTALS 10 OR 425 PESOS THIS MEAL COSTS AN AVERAGE CUBAN NEARLY THREE WEEKS' SALARY IN PESOS IF THEY ARE CAUGHT WITH US CURRENCY CUBANS RISK SIX MONTHS TO TWO YEARS IN JAIL SOCIALISM IS BAD A CUBAN TEENAGER TELLS ME ON THE STREET YOUNG CUBANS LOVE TO DRESS UP BUT THERE ARE NO CLOTHES GIVEN THE OFFICIAL APPAREL ALLOTMENT ONE PAIR OF PANTS OR SKIRT AND ONE SHIRT OR BLOUSE A YEAR THIS IS NO EXAGGERATION MAINTAINING A WARDROBE THESE DAYS TAKES PATIENCE STEALTH AND OFTEN A FRIEND FROM ABROAD I HELP THE TEEN AND HIS BROTHER BUY A PAIR OF PLOP BRAND JEANS AND A SHIRT THEY WILL SHARE AS ONE WAITS WITH THE GOODS IN A WELLSTOCKED DOLLARSONLY TOURIST SHOP THE OTHER QUIETLY SLIPS ME A ROLL OF GREENBACKS IN A HOTEL MEN'S ROOM WHICH I THEN USE TO MAKE THE PURCHASE AS IF IT WERE FOR ME CUBA'S FREE MEDICAL CARE HAS BEEN DEPLETED TOO 62 PATIENTS WERE OPERATED ON LAST YEAR WITH ACUPUNCTURE AS AN ANESTHETIC SAYS DR JOSE MANUEL ALMEIDA DIRECTOR OF THE COMANDANTE PINARES HOSPITAL IN SAN CRISTOBAL SINCE MARCH 1990 GALL BLADDER AND ORTHOPEDIC SURGERY AND EVEN CAESAREAN SECTIONS HAVE BEEN PERFORMED WITHOUT ANESTHESIA DR ALMEIDA POINTS TO A SMALL GARDEN BEHIND HIS FACILITY WHERE HERBS ARE GROWN FOR THE 109 DIFFERENT DRUGS THE HOSPITAL MANUFACTURES FOR AILMENTS AS DIVERSE AS DERMATITIS AND HYPERTENSION THIS GREEN MEDICINE IS NOW COMMON IN CUBA DOCTORS HERE ALSO ISSUE DIET AFFIDAVITS LIKE PRESCRIPTIONS THEY GIVE PATIENTS WITH SPECIAL MEDICAL NEEDS ACCESS TO SUPPLEMENT THE INSUFFICIENT FOOD RATIONS I'M SAD SAYS A CANADIAN DOCTOR WHO HELPED BUILD SOCIALISM WHILE LIVING IN CUBA FROM 1964 TO 1968 WHEN YOU HAVE A TWOTIERED MEDICAL SYSTEM YOU DON'T HAVE SOCIALIZED MEDICINE REFERRING TO ANOTHER MARKET INVASION OF SOCIALIST PURITY HE SAYS THAT WELLCONNECTED CUBANS WITH DOLLARS GET FAR BETTER CARE THAN THOSE WITH PESOS ONE SUCH MAN HE KNOWS OF GOT THE HIGHTECH TREATMENT FOR SCOLIOSIS IF HE HAD PESOS THE DOCTOR BELIEVES HE STILL WOULD BE WAITING ON THE ROAD TO HAVANA FROM SAN CRISTOBAL SEVERAL CUBANS RIDE A FEW OF THE ONE MILLION OR SO BICYCLES IMPORTED FROM CHINA TO EASE THE ISLAND'S SEVERE FUEL AND SPARE PARTS SHORTAGES SCORES OF OTHERS STAND IN THE SLOW LANE TO HITCHHIKE FOR A RIDE FROM PRIVATE OR GOVERNMENT CARS OUR VAN IS ONE OF THE FEW VEHICLES HEADED EAST ON THE EIGHTLANE HIGHWAY ON A WEDNESDAY MIDAFTERNOON TRAFFIC IS SO LIGHT THAT WE INTERRUPT FOUR VULTURES PICKING A CARCASS CLEAN IN THE MIDDLE OF THE ROAD AS 50 OR SO CUBANS BICKER LOUDLY AND JOSTLE EACH OTHER IN A PIZZA LINE THAT EVENING I ASK ROBERTO A 21YEAROLD UNEMPLOYED ENGINEER WHO OR WHAT IS TO BLAME FOR ALL THE CHAOS ON THIS ISLAND I WOULD SAY THE US BLOCKADE IS 40 RESPONSIBLE HE SAYS THE OTHER 60 IS MISMANAGEMENT AFTER 34 YEARS IN THE SOCIALIST CAMP NEVERTHELESS IS IT EITHER REALISTIC OR MORAL TO EXPECT AN OPPRESSED AND INTIMIDATED PEOPLE INCREASINGLY HUNGRY THREADBARE SICK AND IMMOBILIZED TO MARCH INTO REVOLUTION SQUARE BY THE MILLIONS TO DEMAND CASTRO'S RETIREMENT IT'S FAR MORE SENSIBLE AND ETHICAL TO TRY SOMETHING WITH A BETTER CHANCE OF SUCCESS THAN A 32YEAROLD EMBARGO THAT HAS YET TO BEAR FRUIT THE TIME IS RIGHT TO HELP CUBANS DIRECTLY BY TRADING THE BENEFITS OF COMMERCE AND CONTACT WITH THE US FOR A LOOSENING OF CASTRO'S GRIP BUT LIFTING THE EMBARGO MUST NOT BE A TYPICAL FOGGY BOTTOM GIVEAWAY IT SEEMS A FAIR BET THAT CASTRO WOULD AGREE TO SOME US CONDITIONS IN RETURN FOR IMPROVED RELATIONS AND TRADE BARRING OF COURSE ANY GOODS THAT WOULD BOLSTER CUBA'S MILITARY AND REPRESSIVE APPARATUS IRONICALLY WITHOUT THE EMBARGO CASTRO FINALLY WOULD HAVE TO FACE RESPONSIBILITY FOR THE MOUNTING TRAVAILS OF THE COMMON CUBAN WITH THEIR BELLIES FULL AND THEIR BODIES CLEAN AND DRESSED CUBANS MAY BE ABLE TO STOP HUNTING AND GATHERING AND TURN THEIR ATTENTION TO SUCH MATTERS AS FREEDOM DEMOCRACY AND MARKETS AS ONE CUBAN I MET PUT IT IF WE CAN EAT WE CAN THINK ABOUT HOW TO CHANGE THINGS MR MURDOCK IS A NEW YORK WRITER AND CONSULTANT HE VISITED CUBA IN FEBRUARY ON A 10DAY FACTFINDING TRIP ORGANIZED BY THE CENTER FOR CUBAN STUDIES 9303260131 930326 PROPERTY INSURERS SWUNG TO NET LOSS IN FOURTH QUARTER BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE US PROPERTY AND CASUALTY INSURANCE INDUSTRY SWUNG TO A NET LOSS IN THE FOURTH QUARTER FROM A PROFIT A YEAR EARLIER MAINLY BECAUSE OF CLAIMS FROM HURRICANE ANDREW AND OTHER CATASTROPHES FOR THE FULL YEAR NET INCOME FELL 58 PRIMARILY BECAUSE OF CATASTROPHE LOSSES ESTIMATED AT A RECORD 23 BILLION THE INSURANCE INFORMATION INSTITUTE SAID THE FOURTHQUARTER NET LOSS OF 106 BILLION INCLUDED AN OPERATING LOSS OF 447 BILLION AND 259 BILLION OF REALIZED CAPITAL GAINS IN THE 1991 FOURTH QUARTER THE INDUSTRY HAD NET INCOME OF 409 BILLION INCLUDING OPERATING PROFIT OF 346 BILLION AND REALIZED CAPITAL GAINS OF 146 BILLION THE OPERATING LOSS FOR THE 1992 FOURTHQUARTER INCLUDES AN UNDERWRITING LOSS OF 1272 BILLION MORE THAN DOUBLE THE 486 BILLION UNDERWRITING LOSS OF A YEAR EARLIER AND NET INVESTMENT INCOME OF 836 BILLION DOWN 59 FROM 889 BILLION A YEAR EARLIER THE LOSS IN THE QUARTER WAS UNUSUAL SAID SEAN MOONEY OF THE INSTITUTE NOT ONLY DID YOU HAVE SOME CATASTROPHES LIKE THE NOR'EASTER IN DECEMBER BUT YOU ALSO HAD ADDITIONS TO THE LOSSES FROM HURRICANE ANDREW MR MOONEY SAID HE NOTED THAT ALTHOUGH THE HURRICANE OCCURRED IN THE THIRD QUARTER ESTIMATES OF LOSSES ABOUT DOUBLED FROM INITIAL FIGURES THE COMBINED RATIO WHICH MEASURES CLAIMS AND EXPENSES RELATIVE TO PREMIUMS ROSE TO 1235 IN THE QUARTER FROM 1102 THIS MEANS FOR EVERY 100 OF PREMIUM COLLECTED INSURERS PAID OUT 12350 IN CLAIMS AND EXPENSES FOR THE FULL YEAR NET INCOME FELL TO 595 BILLION FROM 1418 BILLION THE FULLYEAR RESULTS ARE THE INDUSTRY'S LOWEST SINCE 1985 CATASTROPHE LOSSES IN 1992 WERE MORE THAN THREE TIMES THE PREVIOUS RECORD OF 76 BILLION IN 1989 THE YEAR 1992 MADE A CRUEL JOKE OUT OF THE INSURANCE DICTUM OF SPREADING THE RISK'R MOONEY SAID HE NOTED THAT COMPANIES WITH A DIVERSE RISK PORTFOLIO IN VARIOUS PARTS OF THE COUNTRY WERE HIT BY AN UNPRECEDENTED SERIES OF BIG DISASTERS INCLUDING HURRICANE ANDREW AT 155 BILLION THE COSTLIEST EVER AND THE LOS ANGELES RIOTS WHICH COST THEM 775 MILLION THE 1992 PROFIT INCLUDED A 311 BILLION OPERATING LOSS COMPARED WITH OPERATING PROFIT OF 1379 BILLION A YEAR EARLIER REALIZED CAPITAL GAINS MORE THAN DOUBLED TO 1037 BILLION FROM 481 BILLION THE PREVIOUS YEAR THE FULLYEAR COMBINED RATIO ROSE TO 1159 FROM 1088 THE FIGURES ARE ESTIMATES FOR 96 OF THE NATION'S PROPERTY AND CASUALTY INSURERS BASED ON DATA COMPILED BY THE INSURANCE SERVICES OFFICE INC AND THE NATIONAL ASSOCIATION OF INDEPENDENT INSURERS 9303260130 930326 UNOCAL UNIT TO REDEEM DEBT THE 6 5/8 DEBENTURES WERE CALLED AT 1002 OF THEIR FACE AMOUNT PLUS ACCRUED INTEREST TO THE DATE OF REDEMPTION APRIL 16 THE 8 5/8 DEBENTURES WERE CALLED AT 10252 OF THEIR FACE AMOUNT PLUS ACCRUED INTEREST TO THE DATE OF REDEMPTION APRIL 13 9303260128 930326 WHO'S NEWS FIRST BOSTON OFFICIAL IS SELECTED BY CLINTON FOR MORTGAGE POSITION WASHINGTON PRESIDENT CLINTON SELECTED AIDA ALVAREZ A VICE PRESIDENT IN THE PUBLIC FINANCE DEPARTMENT AT FIRST BOSTON CORP AS THE FIRST REGULATOR OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORP A NATIVE OF PUERTO RICO AND A GRADUATE OF HARVARD COLLEGE MS ALVAREZ FOCUSED LARGELY ON INFRASTRUCTURE FINANCING AT FIRST BOSTON A UNIT OF CS FIRST BOSTON INC SERVING AS A SENIOR BANKER ON STATE OF CALIFORNIA ACCOUNTS MS ALVAREZ 43 YEARS OLD WAS ONE OF THE HEADS OF THE CLINTON/GORE WOMEN'S ADVISORY COMMISSION A LAW PASSED LATE LAST YEAR ERECTS A NEW REGULATORY STRUCTURE FOR THE TWO MORTGAGE FINANCE GIANTS CREATING AN INDEPENDENT OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT WITHIN THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CONGRESS SET ABOUT BOLSTERING THE FINANCIAL SAFETY AND SOUNDNESS REGULATION OF THE TWO GOVERNMENTSPONSORED ENTERPRISES IN RESPONSE TO CONTINGENT LIABILITY CONCERNS SPAWNED BY THE THRIFT CRISIS BOTH FANNIE MAE AND FREDDIE MAC ARE PRIVATELY OWNED CONGRESSIONALLY CHARTERED FIRMS WITH THE MISSION OF ASSISTING HOUSING TOGETHER THEY HAVE MORE THAN 900 BILLION OF SECURITIES OUTSTANDING AS DIRECTOR OF THE NEW OVERSIGHT OFFICE MS ALVAREZ MUST OVERSEE NEW CAPITAL STANDARDS AND AFFORDABLE HOUSING GOALS SET FORTH IN THE NEW LAW 9303260127 930326 AMETEK RESTRUCTURES MANAGEMENT CHOOSES BLANKLEY AS CHAIRMAN PAOLI PA AMETEK INC SAID THAT WALTER E BLANKLEY WILL BE NAMED CHAIRMAN OF THE BOARD IN APRIL AND THAT IT WOULD CREATE A NEW OFFICE OF THE PRESIDENT MR BLANKLEY 57 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER SINCE 1990 WILL CONTINUE AS CHIEF EXECUTIVE AND WILL ASSUME THE POST OF CHAIRMAN FOLLOWING THE RETIREMENT OF JOHN H LUX THE OFFICE OF THE PRESIDENT WILL CONSIST OF ROGER K DERR 61 EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER ALLAN KORNFELD 55 EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND AMETEK'S THREE GROUP VICE PRESIDENTS PETER A GUERCIO 64 FRANK S HERMANCE 44 AND GEORGE E MARSINEK 55 AMETEK A MAKER OF PRECISION INSTRUMENTS ELECTRIC MOTORS AND ENGINEERED MATERIALS SAID THE NEW STRUCTURE WOULD GIVE ITS TOP EXECUTIVES MORE FLEXIBILITY IN ADAPTING TO MARKET NEEDS 9303260126 930326 CANADA TO AUCTION BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION ON WEDNESDAY 180 BILLION CANADIAN DOLLARS US145 BILLION OF BONDS DUE AUG 1 1996 PROCEEDS OF THE ISSUE WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9303260125 930326 FINANCING BUSINESS KANEB PIPE LINE PARTNERS LP KANEB PIPE LINE PARTNERS LP DALLAS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 225 MILLION SENIOR PREFERRED UNITS AND EXPECTS PROCEEDS OF ABOUT 545 MILLION THE PETROLEUM TRANSPORATION AND STORAGE CONCERN CURRENTLY HAS FIVE MILLION SENIOR PREFERRED UNITS OUTSTANDING IT PLANS TO BEGIN OFFERING THE NEW UNITS IN MAY 9303260124 930326 BUSINESS BRIEF AMERICAN HOME PRODUCTS CORP UNIT ACQUIRES M POLANER MAJOR JAM JELLY PRODUCER A UNIT OF AMERICAN HOME PRODUCTS CORP SAID IT ACQUIRED M POLANER INC A MAJOR JAM AND JELLY PRODUCER POLANER BASED IN ROSELAND NJ WAS BOUGHT FROM CLOSELY HELD ARTAL NV OF THE NETHERLANDS TERMS WEREN'T DISCLOSED BUT PEOPLE CLOSE TO THE ACQUISITION ESTIMATE ITS VALUE AT 70 MILLION POLANER HAD ABOUT 65 MILLION IN SALES LAST YEAR IN AN INTERVIEW IN NEW YORK CHARLES LAROSA PRESIDENT OF THE UNIT AMERICAN HOME FOOD PRODUCTS INC SAID THE POLANER PURCHASE IS PART OF AN AGGRESSIVE ACQUISITION STRATEGY BEGUN SIX YEARS AGO AT THE FOOD PRODUCTS UNIT MR LAROSA SAID THE POLANER PURCHASE WOULD HELP THE UNIT THIS YEAR APPROACH ITS TARGET OF 1 BILLION IN SALES IN 1992 THE FOOD UNIT CONTRIBUTED 866 MILLION TO THE PARENT'S 787 BILLION IN SALES THE PARENT IS PRIMARILY A PHARMACEUTICAL CONCERN 9303260123 930326 TRANS FINANCIAL ACQUISITION BOWLING GREEN KY TRANS FINANCIAL BANCORP INC SAID IT AGREED TO BUY TRANS KENTUCKY BANCORP PIKEVILLE KY FOR 185 MILLION OR 9686 A SHARE THE PURCHASE PRICE REPRESENTS A PREMIUM OVER TRANS KENTUCKY'S BOOK VALUE OF 9130 A SHARE THE TRANSACTION WILL CREATE AN INSTITUTION WITH 117 BILLION IN ASSETS TRANS FINANCIAL HAD 9785 MILLION IN ASSETS AT DEC 31 AND TRANS KENTUCKY HAD 1868 MILLION OFFICIALS EXPECT TO COMPLETE THE TRANSACTION IN THE THIRD QUARTER 9303260122 930326 BUSINESS BRIEF WESTINGHOUSE ELECTRIC'S SHARES SURGE ON SPECULATION OVER NEW TOP OFFICER WESTINGHOUSE ELECTRIC CORP SHARES SURGED YESTERDAY IN HEAVY TRADING AMID SPECULATION THAT THE COMPANY IS MOVING TOWARD NAMING A NEW CHIEF EXECUTIVE OFFICER AS WELL AS SIGNS THAT VALUEORIENTED INVESTORS ARE SHOWING NEW INTEREST SHARES OF THE PITTSBURGH MANUFACTURING AND BROADCASTING COMPANY CLOSED NEW YORK STOCK EXCHANGE TRADING AT 15375 UP 1 OR 7 ON VOLUME OF 7423900 SHARES FIRST BOSTON CORP A HEAVY BUYER IN BLOCK TRADES WOULDN'T REVEAL ITS CLIENTS AMONG THE TOP CONTENDERS TO SUCCEED FORMER CHIEF EXECUTIVE PAUL LEGO WHO RESIGNED UNDER BOARD PRESSURE IN JANUARY ARE VINCENT SARNI CHIEF EXECUTIVE OF PPG INDUSTRIES INC PITTSBURGH AND PAUL STERN WHO RECENTLY STEPPED DOWN AS CHIEF EXECUTIVE OF TORONTO'S NORTHERN TELECOM LTD MR SARNI COULDN'T BE REACHED FOR COMMENT AND THROUGH A SPOKESMAN DR STERN DECLINED TO COMMENT MR SARNI WHO IS 64 YEARS OLD HAS SAID HE WILL HE WILL RETIRE THIS SUMMER FROM PPG A MAKER OF PAINTS AND CHEMICALS WHERE HE HAS BEEN WELLREGARDED HE HAS TOLD WALL STREET ANALYSTS THAT HE WAS STRONGLY INTERESTED IN THE WESTINGHOUSE JOB DR STERN 54 WHO REMAINS CHAIRMAN OF NORTHERN TELECOM WAS RUMORED TO BE A CANDIDATE FOR THE TOP JOB AT INTERNATIONAL BUSINESS MACHINES CORP A PERSON FAMILIAR WITH THE WESTINGHOUSE SEARCH SAID MR STERN HAS BEEN CONSIDERED BUT THAT HE FACED INTERNAL OPPOSITION AMONG SENIOR WESTINGHOUSE EXECUTIVES IF HE WERE NAMED THE STOCK PRICE WOULD ZOOM THE PERSON SAID BUT HE HAS A REPUTATION FOR REALLY SHAKING THINGS UP AND I'M NOT SURE THE BOARD IS READY FOR THAT LEADING THE LIST OF INTERNAL CANDIDATES IS ACTING WESTINGHOUSE CEO GARY CLARK 57 WHO HAD HEADED THE COMPANY'S EFFORTS TO SELL ASSETS SEVERAL OTHER TOP WESTINGHOUSE EXECUTIVES ARE ALSO UNDERSTOOD TO BE CANDIDATES THE COMPANY SHARES MAY ALSO HAVE COME IN FOR ATTENTION FROM VALUEORIENTED INVESTORS THE INVESTMENT COMMUNITY HAS FINALLY REALIZED THAT WESTINGHOUSE IS NOT GOING TO GO BANKRUPT SAYS RANDALL ELEY PRESIDENT OF EDGAR LOMAX CO IN SPRINGFIELD VA A MONEY MANAGEMENT CONCERN THAT HAS BEEN BUYING WESTINGHOUSE SHARES SINCE LAST FALL THE STOCK WAS BEATEN DOWN AS LOW AS 9375 THEN AFTER WRITEOFFS AT THE COMPANY'S CREDIT UNIT DOWNGRADES TO ITS BONDS AND THE ANNOUNCEMENT OF A PLAN TO SELL OFF ASSETS TO PAY DOWN DEBT INVESTORS WERE ALSO DISAPPOINTED IN JANUARY BY THE FAILURE OF EFFORTS TO SELL THE CREDIT UNIT'S LOANS IN BULK TO GENERAL ELECTRIC CO BUT SINCE THEN SALES OF THE LOANS HAVE PROCEEDED WITH THE COMPANY SAYING RECENTLY THAT IT EXPECTED SALES OF AT LEAST 400 MILLION OF THE 41 BILLION BOOK VALUE IN LOANS DURING THE QUARTER ENDING MARCH 31 9303260121 930326 POTOMAC WATCH RENO OR SOMEONE STAGES A TUESDAY NOON MASSACRE BY PAUL A GIGOT I KEEP POLITICS OUT OF WHAT I DO SENATOR SO SAID JANET RENO AMERICA'S NEW ATTORNEY GENERAL AT HER CONFIRMATION HEARING THIS MONTH MOST AMERICANS WOULD LIKE TO BELIEVE HER BUT NOW JUST TWO WEEKS LATER SHE HAS DISMISSED ALL 93 US ATTORNEYS IN ONE UNCLEAN SWEEP IF MS RENO ISN'T PLAYING POLITICS THEN WHO IS EVERY PRESIDENT DESERVES HIS OWN APPOINTEES BUT MS RENO'S TUESDAY NOON MASSACRE IS EXTRAORDINARY IN SCOPE AND SPEED US ATTORNEYS ARE THE FEDERAL GOVERNMENT'S TOP PROSECUTORS THEY ARREST THE MOBSTERS AND POLITICAL CROOKS SPREAD OUT AROUND THE COUNTRY THEY TYPICALLY SERVE FOURYEAR TERMS THAT'S WHY RECENT PRESIDENTS HAVE REPLACED US ATTORNEYS ONLY GRADUALLY ONE AT A TIME AS THEIR TERMS EXPIRE OR SUCCESSORS ARE READY PRESIDENT CLINTON SAID YESTERDAY HE'S ONLY FOLLOWING PRECEDENT BUT HE'S WAY OUTOFDATE ONLY LAST NOVEMBER NEW YORK DEMOCRATIC SEN DANIEL PATRICK MOYNIHAN SAID HE WOULD RECOMMEND THAT THE CURRENT US ATTORNEYS BE ALLOWED TO COMPLETE THE REMAINDER OF THEIR TERMS TO STAY ABOVE POLITICS HE SAID THIS HAS BECOME THE NORM SINCE 1977 IN WASHINGTON DC THE FORDERA US ATTORNEY STAYED ON FOR 18 MONTHS UNDER JIMMY CARTER AND THE CARTERAPPOINTED ATTORNEY CLINTON FRIEND CHARLES RUFF STAYED ON FOR 13 MONTHS UNDER RONALD REAGAN CLINTON TRANSITION OFFICIALS WERE SAYING FOR WEEKS THEY'D DO THE SAME THEN GENERAL RENO RIDES IN TO GIVE THE ATTORNEYS JUST 10 DAYS TO MAKE WAY FOR INTERIM REPLACEMENTS SEND IN YOUR RESIGNATIONS CLEAR OUT YOUR DESKS THE CLINTON TEAM IS HERE EXCEPT THAT IT REALLY ISN'T MS RENO IS THE ONLY JUSTICE OFFICIAL THE WHITE HOUSE HAS EVEN NOMINATED YET SHE THINKS IT'S WISE TO REMOVE 93 MANAGERS FROM THE FRONT LINES MAYBE SHE'S A RECLUSE SENSITIVE CASES ARE GOING TO STAGNATE OR SUFFER ESPECIALLY BECAUSE INTERIM OFFICIALS RARELY RISK THEIR CAREERS BY MAKING THE TOUGH CALLS OFTEN REQUIRED OF US ATTORNEYS MICHAEL CHERTOFF THE US ATTORNEY FROM NEW JERSEY HAS TO BEGIN THE CELEBRITY CASE OF REPUBLICAN FORMER JUDGE SOL WACHTLER SOON BUT NOW IS SUPPOSED TO LEAVE OFFICE NEXT WEEK AT BEST IT'S A BUSH LEAGUE EXERCISE SAYS ONE PROMINENT DEMOCRAT AND FORMER US ATTORNEY WHAT YOU'RE SAYING IS THIS IS A POLITICAL JOB TO THE VICTORS GO THE SPOILS SO GET OUT IT'S A TERRIBLE SIGNAL REAGANERA ATTORNEY GENERAL ED MEESE ADDS THAT MY RECOLLECTION IS THAT WE KEPT THE ATTORNEYS ON UNTIL WE REPLACED EACH ONE IT SEEMS A DUMB IDEA TO LEAVE A BUNCH OF EMPTY OFFICES PERHAPS MS RENO SHOULD CONSULT MR MEESE FOR ETHICS AND MANAGEMENT ADVICE THE ILLOGIC OF THE DISMISSALS HAS PEOPLE WONDERING ABOUT OTHER MOTIVES SUCH AS SAVING CHICAGO REP DAN ROSTENKOWSKI JAY STEPHENS THE US ATTORNEY HERE HAS BEEN INVESTIGATING THE TITAN OF WAYS AND MEANS AS PART OF THE HOUSE POSTOFFICE PROBE AFTER HE GOT HIS 10DAY NOTICE MR STEPHENS HELD HIS OWN PRESS CONFERENCE TO SAY HE WAS WITHIN 30 DAYS OF A DECISION ON ROSTY AFTER THIS PUBLIC RIPOSTE JUSTICE BACKED OFF AND SAID SOME ATTORNEYS MAY BE ABLE TO STAY LONGER THAN 10 DAYS BUT NOT APPARENTLY MR STEPHENS I LIKE ROSTY A BRUSQUE BUT CANDID POLITICIAN OF THE OLD SCHOOL AND I HOPE THERE'S NO CAUSE FOR INDICTMENT ROSTY HIMSELF SAYS MR STEPHENS A REPUBLICAN IS ON A FISHING TRIP BUT IT'S ALSO TRUE THAT THE INDICTMENT OF THE WAYS AND MEANS CHAIRMAN WOULD COST MR CLINTON HIS FIELD GENERAL IN GETTING HIS TAXANDSPEND PROGRAM THROUGH CONGRESS THE SUSPICION IS ESPECIALLY ACUTE BECAUSE IT FOLLOWS WHITE HOUSE MEDDLING ON BEHALF OF ANOTHER WAYS AND MEANS MEMBER HAROLD FORD OF TENNESSEE A MEMBER OF THE BLACK CAUCUS MR FORD IS ACCUSED OF TAKING 12 MILLION FROM THE CORRUPT BUTCHER BANKING EMPIRE AFTER JURY SELECTION PRODUCED A PANEL OF 11 WHITES AND ONE BLACK HE AND JESSE JACKSON PROTESTED TO THE WHITE HOUSE THENACTING ATTORNEY GENERAL AND BUSH HOLDOVER STUART GERSON MET WITH THE BLACK CAUCUS AND LATER DEMANDED THAT THE JURY BE DISMISSED THE US ATTORNEY AND TWO LAWYERS QUIT THE CASE IN PROTEST THE GERSONBLACK CAUCUS MEETING WAS ARRANGED BY WEBSTER HUBBELL A FORMER LITTLE ROCK MAYOR AND 310000AYEAR LAW PARTNER OF HILLARY CLINTON WHO IS NOW JUSTICE'S LIAISON WITH THE WHITE HOUSE AKA MR CLINTON'S HUBBELL TELESCOPE ALL OF WHICH RAISES THE DEEPER ISSUE OF WHO IS REALLY RUNNING JUSTICE MS RENO SAYS DISMISSING THE 93 ATTORNEYS WAS A JOINT DECISION WITH THE WHITE HOUSE WHICH MEANS THE WHITE HOUSE DECIDED AND SHE ANNOUNCED IT HER LETTER ASKED THE US ATTORNEYS TO SEND THEIR RESIGNATION LETTERS CARE OF JOHN PODESTA ASSISTANT TO THE PRESIDENT AND STAFF SECRETARY WITH A COPY TO ME INDEPENDENT JUSTICE GENERAL RENO'S SPOKESWOMAN ADDS THAT MR HUBBELL WAS AN ADVISER ON THE DISMISSALS THOUGH HE HASN'T EVEN SUBJECTED HIMSELF TO SENATE CONFIRMATION PERHAPS IN ANOTHER ERA MR HUBBELL WOULD BE MR CLINTON'S ATTORNEY GENERAL BUT IN THIS AGE OF DIVERSITY AND ETHICAL APPEARANCES A PRESIDENTIAL CRONY FROM ARKANSAS SEEMS TO NEED A SKIRT TO HIDE BEHIND IT ALL SMACKS NOT OF AMERICAN RENEWAL BUT OF AN ADMINISTRATION THAT IS THE MOST SECRETIVE AND DEEPLY POLITICAL SINCE RICHARD NIXON'S 9303260119 930326 CAMPBELL MAKES BID FOR LEADERSHIP OF CANADIAN PARTY BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADIAN DEFENSE MINISTER KIM CAMPBELL A STRONG SUPPORTER OF CANADA'S FREE TRADE AGREEMENT WITH THE US FORMALLY ENTERED THE RACE TO SUCCEED BRIAN MULRONEY AS LEADER OF THE PROGRESSIVE CONSERVATIVE PARTY AND PRIME MINISTER IF ELECTED SHE WOULD BE CANADA'S FIRST WOMAN PRIME MINISTER MS CAMPBELL A 46YEAROLD LAWYER IS HEAVILY FAVORED TO WIN THE LEADERSHIP CONTEST THE CONSERVATIVES ARE TO PICK THEIR NEW LEADER AT A CONVENTION JUNE 913 OPINION POLLS SHOW THAT IF THE CONSERVATIVES WERE LED BY MS CAMPBELL THEY WOULD HAVE A SUBSTANTIAL LEAD IN PUBLIC SUPPORT UNDER MR MULRONEY THE CONSERVATIVES HAD ALMOST BEEN WRITTEN OFF AS A CONTENDER IN THE NEXT ELECTION WHICH MUST BE HELD BEFORE NOVEMBER MS CAMPBELL IN A SPEECH IN VANCOUVER LAUNCHING HER LEADERSHIP CAMPAIGN REAFFIRMED HER SUPPORT FOR THE USCANADA TRADE AGREEMENT WHICH IS TO BE BROADENED TO INCLUDE MEXICO IT WAS THE FREE TRADE AGREEMENT THAT BROUGHT ME INTO FEDERAL POLITICS SHE SAID SHE ALSO PLEDGED TO DEAL WITH CANADA'S SERIOUS DEBT PROBLEM SHE NOTED THAT HER CABINET COLLEAGUES VIEW HER AS A HARD NOSED ADVOCATE OF SPENDING RESTRAINT BUT SHE SAID THE GOVERNMENT HAS TO DEAL WITH THE PROBLEM OR RISK DISENFRANCHISING FUTURE GENERATIONS THE DEBT OF FEDERAL AND PROVINCIAL GOVERNMENTS TOTALS ABOUT 665 BILLION CANADIAN DOLLARS US535 BILLION OR ABOUT 96 OF THE COUNTRY'S GROSS DOMESTIC PRODUCT FOUR OTHER CONSERVATIVE MEMBERS OF PARLIAMENT INCLUDING ENVIRONMENT MINISTER JEAN CHAREST ALSO HAVE ENTERED THE RACE TO SUCCEED MR MULRONEY BUT MOST POLITICAL ANALYSTS GIVE MS CAMPBELL A COMMANDING LEAD WITHOUT AN ELECTION MR MULRONEY WHO HAS BEEN PRIME MINISTER SINCE SEPTEMBER 1984 SAID LAST MONTH THAT HE WOULD RESIGN AS SOON AS HIS PARTY PICKED A SUCCESSOR IN THE PARLIAMENTARY SYSTEM A NEW PRIME MINISTER CAN TAKE OFFICE WITHOUT AN ELECTION PROVIDED HE OR SHE HAS SUFFICIENT SUPPORT IN PARLIAMENT TO GOVERN MS CAMPBELL HAS DRAWN HER SHARPEST CRITICISM FROM WOMEN'S GROUPS REAL WOMEN OF CANADA AN ANTIABORTION LOBBYING GROUP HAS ATTACKED HER ALLEGEDLY PROHOMOSEXUAL ABORTIONRIGHTS VIEWS SOME FEMINIST GROUPS ALSO HAVE CRITICIZED HER FOR NOT DOING ENOUGH TO ADVANCE WOMEN'S RIGHTS MS CAMPBELL SAID YESTERDAY THAT SHE REALLY DIDN'T MIND THAT SOME WOMEN'S GROUPS DON'T LIKE ME VERY MUCH SUCH DIFFERENCES ARE TO BE EXPECTED SHE SAID BECAUSE WOMEN DON'T ALL THINK ALIKE 9303260118 930326 REVIEW & OUTLOOK EDITORIAL HOME CLINTONOMIX WHILE VISITING CLEVELAND DURING THE PRESIDENTIAL PRIMARY SEASON BILL CLINTON IN A SPEECH THAT THE CANDIDATE IS SAID TO HAVE LABORED OVER HIMSELF TO GIVE VOICE TO HIS AUTHENTIC EXPERIENCE DECLARED THAT FAMILY VALUES ARE MORE THAN JUST CODE FOR BELTWAY DEMOCRATS WHO WANT TO SPEND MORE OF YOUR TAX MONEY ON PROGRAMS THAT DON'T EMBODY YOUR VALUES ON THE SUBJECT OF PERSONAL BEHAVIOR MR CLINTON ADDED WE WERE TAUGHT TO TAKE RESPONSIBILITY FOR OURSELVES AND EACH OTHER AND THAT IF WE DID WE WOULD DO BETTER IT'S TIME TO MOUNT A RESCUE MISSION TO THE WHITE HOUSE BASEMENT WHERE WE'D EXPECT TO FIND CANDIDATE CLINTON A NEW KIND OF DEMOCRAT TIED UP AND GAGGED WE'RE HARD PUT TO BELIEVE THAT VOTERS THOUGHT THEY WERE SUPPORTING THE POLICIES NOW INCARNATED IN THE FELLOW WHO OCCUPIES THE OVAL OFFICE IN PARTICULAR VOTERS WHO FOCUSED ON THE FIRST HALF OF THAT REMARK ABOUT BELTWAY DEMOCRATS WHO WANT TO SPEND MORE OF YOUR TAX MONEY OBVIOUSLY MISSED MR CLINTON'S POINT IT'S CLEAR NOW THAT HE MEANT TO SPEND THEIR TAXES TOO BUT ON PROGRAMS THAT EMBODY YOUR VALUES WE SUSPECT A LOT OF MIDDLECLASS VOTERS ARE COMING TO BELIEVE THAT MR CLINTON JUST DOESN'T GET IT ABOUT THEIR LIVES AMERICANS KNOCK THEMSELVES OUT TRYING TO RAISE FAMILIES AND PROVIDE THEM A MODICUM OF FINANCIAL SECURITY THE CLEVELAND CLINTON WOULD HAVE SYMPATHIZED BUT THE WASHINGTON VERSION LOOKS AT FAMILIES AND ONLY SEES CHICKENS TO BE PLUCKED HIS ECONOMIC PLAN WOULD HOBBLE THEIR PROGRESS WITH NEW PROGRESSIVE TAX BURDENS WHICH SERVE ONLY TO DISCOURAGE THE KINDS OF RESPONSIBLE BEHAVIOR THE CLEVELAND CLINTON PROMISED TO REWARD WE'D GUESS THAT MOST AMERICANS LOOK ON MARRIAGE AS A GOOD THING AND WANT TO SEE IT ENCOURAGED BUT THE CLINTONITES TREAT IT AS A SIN TO BE TAXED SOMETIMES PROHIBITIVELY ONCE THE NEW 36 BRACKET KICKS IN FOR EXAMPLE A COUPLE MAKING 115000 EACH WILL BE ABLE TO SAVE 4500 A YEAR BY OPTING TO LIVE WITHOUT BENEFIT OF CLERGY FOR ROMANTICS ON MODEST INCOMES THE INCENTIVE TO AVOID THE PREACHER CAN BE EVEN STRONGER IMAGINE A COUPLE EARNING 12000 EACH AND PLANNING THREE KIDS THEY'LL PAY 2744 IN TAXES IF THEY GET MARRIED BUT COLLECT REFUNDS TOTALING 831 IF THEY STAY SINGLE WITH A LOT OF DIVORCED AND SINGLE MOTHERS TRYING TO MAKE A NEW START THESE DAYS THIS CAN'T BE A HEALTHY SIGNAL FOR THE TAX CODE TO BE SENDING EVENTUALLY THESE YOUNG FAMILIES WILL MOVE UP THE EARNING CURVE AND THEN THEY'LL BEGIN PUTTING MONEY ASIDE FOR TUITION AND RETIREMENT BUT THEY'LL ALSO BE CLIMBING INTO MR CLINTON'S STEEPER TAX BRACKETS AND HAVE LESS OF EACH ADDITIONAL DOLLAR TO SAVE MR CLINTON BRAGS THAT HIS NEW TAXES SOAK THE RICH IN PARTICULAR THOSE WHO SUPPOSEDLY DIDN'T PAY THEIR FAIR SHARE THE PAST 12 YEARS BUT HE'S CLOBBERING PEOPLE WHO DIDN'T CLEAN UP IN THE '80S WHO ARE JUST NOW IN THEIR PEAK EARNING AND SAVING YEARS AND ONCE THESE COUPLES HIT THEIR GOLDEN OLDIES IF THEY MANAGE TO HANG ON TO THEIR SAVINGS ALONG COMES THE CLINTONITES' NEW TAX ON RICH RETIREES THE CLINTONITES WILL PROTEST THAT THEY'RE NOT OUT TO DISCOURAGE MARRIAGE AND PUNISH SAVING BUT IF THE FATE OF FAMILIES WAS REALLY ON THEIR MINDS THEY WOULD HAVE DRAWN UP THEIR PROGRAM WITH FAMILIES FRONT AND CENTER VOTERS MAY NOT FOLLOW THE TWISTS AND TURNS OF THE POLICY PROCESS BUT THEY EXPECT THAT THE VALUES THEY HEAR TOUTED ON THE CAMPAIGN TRAIL WILL SOMEHOW FLOW INTO PRESIDENTIAL DECISIONS RONALD REAGAN LAUDED FAMILY LIFE AND FOLLOWED UP WITH TAX CREDITS AND LOWER BRACKETS TO SOFTEN THE MARRIAGE PENALTY BUT WITH THE CLINTON PLAN ONCE YOU STRIP THE PACKAGING FROM THE REALITY IT'S HARD TO SEE ANY CONNECTION TO WHAT BILL WAS TALKING ABOUT IN CLEVELAND TWO YEARS AGO DEMOCRATIC SENATOR JAY ROCKEFELLER WON MEDIA ACCOLADES AND BIPARTISAN APPLAUSE WHEN HIS NATIONAL COMMISSION ON CHILDREN CALLED FOR A 1000PERCHILD TAX CREDIT EVERYBODY AGREED THAT STRENGTHENING THE FAMILY MEANT PUTTING MONEY BACK INTO THE HANDS OF PARENTS NOW MR ROCKEFELLER IS READY TO CONVENE AGAIN IN BILL CLINTON'S WASHINGTON AND THE TAX CREDIT HAS DISAPPEARED OFF THE AGENDA INSTEAD THE KIDDIE COMMISSION WILL WHOOP IT UP WITH KEYNOTER MARIAN WRIGHT EDELMAN A HILLARY CRONY WHOSE IDEA OF CHILDHOOD INVESTMENT IS MORE AND BIGGER SPENDING PROGRAMS FROM WASHINGTON WHATEVER HIS ALTER EGO MAY HAVE TOLD THE PEOPLE OF CLEVELAND MR CLINTON HAS FIRED UP THE BELTWAY SPENDING MACHINE AND HAS IT RUMBLING ACROSS THE FIELDS BEHIND A SMOKE SCREEN OF FAIRNESS THE TRULY RICH AS ALWAYS WILL TAKE REFUGE IN THEIR SHELTERS TRIPPED UP BY THE NEWLY PROGRESSIVE TAX CODE MIDDLECLASS FAMILIES ARE THE ONES CAUGHT OUT IN THE OPEN 9303260117 930326 DIVIDEND NEWS NIAGARA MOHAWK POWER CORP NIAGARA MOHAWK POWER CORP SYRACUSE NY INCREASED ITS QUARTERLY DIVIDEND 25 AND SAID IT WOULD OFFER FOUR MILLION SHARES IN LATE APRIL THE ELECTRIC AND GAS UTILITY CITING CONTINUED IMPROVEMENT IN OPERATING AND FINANCIAL PERFORMANCE SAID THE NEW DIVIDEND 25 CENTS A SHARE IS PAYABLE MAY 31 TO STOCK OF RECORD MAY 7 THE COMPANY ALSO SAID NET PROCEEDS FROM ITS PROPOSED STOCK OFFERING WOULD BE USED TO IMPROVE FACILITIES AND THE COMPANY'S ABILITY TO RAISE CAPITAL NIAGARA MOHAWK ADDED IT WOULD PAY A COMMISSION TO SECURITIES DEALERS SO THAT BUYERS OF STOCK WOULD NOT HAVE TO PAY A COMMISSION 9303260116 930326 FORMER DIRECTOR AGREES TO PAY DOUBLE PENALTY IN NUEVO INSIDER CASE WASHINGTON A FORMER DIRECTOR OF NUEVO ENERGY CO AGREED TO AN UNUSUAL DOUBLE PENALTY TO SETTLE CHARGES OF INSIDER TRADING AND FALSE FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION IN A COMPLAINT FILED IN FEDERAL COURT HERE THE SEC ACCUSED JOHN B WALKER OF PURCHASING 10000 SHARES OF NUEVO ENERGY STOCK SHORTLY AFTER HE LEARNED THAT THE COMPANY HAD RECEIVED POSITIVE TEST RESULTS FROM AN OIL WELL THE SEC SAID THE PURCHASE TOOK PLACE IN MARCH 1991 WHEN MR WALKER WAS SERVING AS DIRECTOR AND CORPORATE SECRETARY OF THE HOUSTON COMPANY THE COMPLAINT ALSO ACCUSED MR WALKER OF ATTEMPTING TO CONCEAL HIS TRADING ON INSIDER INFORMATION BY FALSIFYING THE REPORT THAT DIRECTORS ARE REQUIRED TO FILE WITH THE SEC WHEN THEIR STAKE IN A COMPANY CHANGES THE SEC SAID MR WALKER CLAIMED HE HAD PURCHASED THE STOCK AFTER THE COMPANY PUBLICLY ANNOUNCED THE TEST RESULTS AND THAT HE HAD PAID A HIGHER PRICE THAN HE ACTUALLY HAD MR WALKER WHO RESIGNED HIS BOARD POSTS IN JULY 1991 DIDN'T ADMIT OR DENY THE SEC CHARGES BUT AGREED TO PAY A PENALTY OF 26620 FOR THE INSIDERTRADING CHARGE AND A SEPARATE 5000 PENALTY FOR THE ALLEGED MISSTATEMENTS MR WALKER COULDN'T BE REACHED TO COMMENT SEC ATTORNEY LAURA SINGER SAID THE COMMISSION IS STEPPING UP ITS ENFORCEMENT OF RULES COVERING DIRECTORS' FILINGS AS A RESULT SHE SAID THE CASE IS THE FIRST IN WHICH THE COMMISSION HAS SOUGHT TWO PENALTIES RELATED TO A SINGLE INSTANCE OF INSIDER TRADING 9303260115 930326 INTERNATIONAL RUSSIAN CABINET APPROVES SET OF EMERGENCY MEASURES MOSCOW AP THE RUSSIAN CABINET APPROVED A SET OF EMERGENCY MEASURES INCLUDING A SIXMONTH FREEZE ON FOREIGN DEBT PAYMENTS AS WELL AS PLANS TO CURB INFLATION AND PROP UP THE CURRENCY THE ITARTASS NEWS AGENCY REPORTED THE PACKAGE SUBMITTED BY DEPUTY PRIME MINISTER BORIS FYODOROV WAS SUBMITTED IN AN EFFORT TO PUSH AHEAD WITH PRESIDENT BORIS YELTSIN'S ECONOMIC REFORMS ON THE EVE OF HIS POSSIBLE REMOVAL FROM OFFICE THE PROGRAM OUTLINES A PLAN TO FORM A 2 BILLION TO 3 BILLION RUBLE STABILIZATION FUND WITH GOVERNMENT FOREIGN CURRENCY RESERVES AND A PART OF INTERNATIONAL LOANS TO SUPPORT THE RUSSIAN CURRENCY RUSSIA HAS LONG SOUGHT WESTERN CONTRIBUTION TO SUCH A FUND WHILE IT CALLS FOR THE POSTPONEMENT OF FOREIGNDEBT PAYMENTS THE PARIS CLUB OF CREDITORS ALREADY HAS BEEN DISCUSSING DEFERRAL OF RUSSIA'S PAYMENTS ON THE FORMER SOVIET DEBT ESTIMATED AT 70 BILLION TO 80 BILLION THE ANTIINFLATIONARY MEASURES INCLUDE ANCHORING THE CENTRAL BANK INTEREST RATE AT 8 A MONTH AND SETTING STRICT RESTRICTIONS ON THE CREDITS IT ISSUES THE PACKAGE ALSO INCLUDED A VEILED THREAT TO FIRE VIKTOR GERASHCHENKO AS CENTRAL BANK CHAIRMAN IF THE BANK DOESN'T COMPLY WITH THE CABINET PLAN 9303260114 930326 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION HARMONY BROOK AN INITIAL OFFERING OF 1666666 COMMON SHARES VIA JOHN G KINNARD & CO IRG TECHNOLOGIES INC AN INITIAL OFFERING OF 28 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES KEMPER SECURITIES AND RAYMOND JAMES & ASSOCIATES INC OFFSHORE PIPELINES INC AN OFFERING OF FOUR MILLION COMMON SHARES VIA LEHMAN BROTHERS BEAR STEARNS & CO AND KIDDER PEABODY & CO OPTI INC AN INITIAL OFFERING OF 25 MILLION SHARES VIA PAINEWEBBER INC AND NEEDHAM & CO 9303260113 930326 WHO'S WHO ON HILLARY'S LIST ON WEDNESDAY WE PUBLISHED A LIST OF 528 APPARENT MEMBERS OF HILLARY RODHAM CLINTON'S SECRET TASK FORCE ON HEALTH CARE REFORM IN DOING SO WE ASKED THE AMATEUR KREMLINOLOGISTS AMONG OUR READERSHIP TO HELP US FIGURE OUT WHO THEY ARE WE KNOW JOURNAL READERS ARE EXCEPTIONALLY WELLINFORMED AND SURE ENOUGH THEY DIDN'T FAIL US SINCE WEDNESDAY OUR FAX MACHINES HAVE BEEN STEAMING BY LUNCHTIME IN NEW YORK WEDNESDAY JUST AS OUR WEST COAST READERS WERE REACHING THE OFFICE WE HAD RECEIVED 200 FAXES BY YESTERDAY AFTERNOON THE TOTAL HAD GROWN TO MORE THAN 500 WITH THE EXCEPTION OF THREE ALL WERE ENCOURAGING OF OUR EFFORT TO SHED SOME LIGHT ON THE WORKINGS OF THE CLOSEDDOOR TASK FORCE LIKE US OUR READERS APPEAR TO FAVOR A MORE OPEN GOVERNMENT IT REMINDED US OF DEFENSE EXPERT ALBERT WOHLSTETTER'S SUMMARY OF THE SPREAD OF DEMOCRACY IN EASTERN EUROPE THE FAX SHALL MAKE YOU FREE OUR RESPONDENTS CAME FROM ALL AROUND THE COUNTRY AND JUDGING FROM THEIR LETTERHEADS FROM A WIDE RANGE OF BUSINESSES AN ILLINOIS CONSTRUCTION COMPANY THE NEBRASKA DEPARTMENT OF HEALTH A MUSICINFORMATION BUSINESS IN CALIFORNIA THE BUFFALO CHAMBER OF COMMERCE A TEXAS ACCOUNTING FIRM ONLY ABOUT 10 OF THE RESPONSES CAME FROM THE BELTWAY AND NO MORE THAN 20 WERE FROM PEOPLE IN THE HEALTHCARE INDUSTRY IT SEEMS THERE'S A COTTAGE INDUSTRY OUT THERE OF TASKFORCE SAMIDZAT LITERATURE AND AMONG THE HEFTIEST FAXES TO HIT OUR DESKS WERE THOSE FROM INSTITUTIONS AND INDIVIDUALS WHO HAD COMPILED THEIR OWN LISTS AND WERE KIND ENOUGH TO SHARE THEM WITH US SO WHO ARE THE FOLKS ON THE LIST NOT SURPRISINGLY THE ANSWER IS THAT MOST APPEAR TO BE WASHINGTON INSIDERS WE COULD IDENTIFY MORE THAN 100 WHO WORK FOR THE FEDERAL GOVERNMENT AT LEAST ANOTHER 100 ARE CONGRESSIONAL STAFFERS THE PRIVATE INDIVIDUALS ON THE LIST INCLUDE A NUMBER OF ACADEMICS AND THINKTANK TYPES ONE PRIVATESECTOR INDIVIDUAL WHOSE NAME WAS ON THE LIST CALLED TO TELL US THAT WE HAD GOT IT WRONG THAT HE HAD DECLINED AN INVITATION TO JOIN THE TASK FORCE BECAUSE HE DIDN'T WANT TO SIGN THE REQUIRED PLEDGE OF SECRECY IN SHORT SUPPLY ON THE LIST SEEM TO BE HEALTHCARE WORKERS WITH REALWORLD EXPERIENCE WE GUESS THEY'RE TOO BUSY TAKING CARE OF PATIENTS TO SERVE ON TASK FORCES AS FOR BUSINESS PEOPLE FORGET IT THEY'RE SPECIAL INTERESTS THE MOST GRATIFYING RESPONSE HOWEVER CAME FROM ROBERT BOORSTIN A SPOKESMAN FOR THE TASK FORCE SAYING THAT IN CONJUNCTION WITH ITS MONDAY PUBLIC MEETING THE TASK FORCE WOULD RELEASE A LIST OF NAMES THE LIST WE PUBLISHED IS NOT ENTIRELY ACCURATE HE SAID IN A LETTER TO THE GENERAL ACCOUNTING OFFICE WHITE HOUSE COUNSEL BERNARD NUSSBAUM SAID THE CORRECT LIST WOULD BE SENT AS SOON AS IT HAS BEEN PREPARED MR BOORSTIN SAID THAT THE REASON THE NAMES HAD BEEN KEPT SECRET HAD NOTHING TO DO WITH ANY GRAND SOVIETSTYLE CONSPIRACIES RATHER THE WHITE HOUSE HAD BEEN WORRIED ABOUT THE PRIVACY OF TENDER CREATURES LIKE CONGRESSIONAL AIDES HE SAID WE DIDN'T FEEL WE SHOULD SUBJECT THEM TO THE ONSLAUGHT OF CALLS FROM THE ALLIGATOR SHOE CROWD WE DID NOT THINK TO ASK WHETHER OUR CORRESPONDENTS OWNED ALLIGATOR SHOES FOR ANYONE WHO WOULD LIKE TO CONFESS THE FAX NUMBER AGAIN IS 212 4162658 TWENTYFIVE YEARS AND THREE GRADUATE DEGREES IN THE HEALTH FIELD HAVE NOT EXPOSED ME TO ANY BUT A HANDFUL OF THE HUNDREDS OF NAMES LISTED I SAW NONE OF THE LEADERS AND MANAGERS WHO OPERATE THE PREMIER HOSPITAL SYSTEM IN THE WORLD I SAW NONE OF THE PHYSICIANS WHO HAVE MADE AMERICAN MEDICINE THE GOLD STANDARD FOR EVERY OTHER COUNTRY I SAW NO NAMES OF INDUSTRIALISTS WHO HAVE MADE AMERICAN HEALTH PRODUCTS THE NUMBER ONE EXPORT SUCCESS STORY OF THE 1980S AND 1990S I DID NOT SEE ANY OF THE LEADERS OF THE PHARMACEUTICAL OR EQUIPMENT INDUSTRY WHOSE PRODUCTS ARE EMULATED THROUGHOUT THE WORLD I SAW NONE OF THE FINANCIERS WHO HAVE CREATED THE RESOURCES TO ENABLE THIS WORLDLEADING INDUSTRY TO GROW AND TO SERVE I SAW NONE OF MY CONCERNED AND COMMITTED STATE OR FEDERAL LEGISLATORS WHO THROUGH MANY YEARS MANY HEARINGS AND MANY COMPROMISES HAVE KEPT A FIRSTCLASS SYSTEM OF HEALTH CARE DEVELOPING AND WHOSE IDEAS FOR COST CONTAINMENT ARE SEASONED I SAW NO INDEPENDENT ADVOCATES FOR THE CONSUMER NO SIDNEY WOLFE NO RALPH NADER I SAW NO ONE IN FACT WHO APPEARS TO BE RESPONSIBLE FOR RUNNING ANYTHING MUCH LESS ANY OF THE MOST SIGNIFICANT ORGANIZATIONS IN AN INDUSTRY THAT COLLECTIVELY PROVIDES ONE OUT OF EVERY SEVEN JOBS IN OUR STRUGGLING ECONOMY THE SHOW TRIAL COMING UP BEFORE THE CLINTON PANEL NEXT MONDAY ALLOWS THREE MINUTES FOR THOSE WHO WILL TESTIFY WE NEED ONLY THREE WORDS FREEDOM OF CHOICE I AM NOT THE ROBERT BLOCH NAMED MOST BLOCHS SPELL IT BLOCK BUT THERE ARE A FEW AROUND THE COUNTRY SOME OF WHOM I HAVE CROSSED PATHS WITH WHO DO SPELL IT AS I DO AND DO HAVE THE NAME ROBERT BLOCH ACTUALLY I WOULD HAVE LIKED TO HAVE BEEN A PART OF THE TASK FORCE I VOTED FOR THE NATIONAL DEMOCRATIC TICKET EVERY YEAR SINCE I TURNED 21 ANOTHER REASON IS THAT IN RECENT MONTHS I HAD MY FIRST EXPERIENCE IN YEARS WITH SURGERY IT ALL TOOK PLACE ON AN OUTPATIENT BASIS ON OCT 14 FOR A HERNIA THANK GOODNESS THE RECOVERY WAS FAST BUT THE PAPERWORK TRAIL CONTINUES ALL TOLD THE EXPERIENCE MUST HAVE PRODUCED AROUND 35 PIECES OF PAPER ALL SENT IN THE MAIL AND I DON'T THINK WE ARE YET FINISHED I THINK DAN WALDO IS FROM THE WHERE'S WALDO BOOKS WE HAVE NOW FOUND WALDO DO I KNOW ANY OF THE PEOPLE YOU LISTED NO BUT I CAN TELL YOU WHERE YOU PROBABLY WILL FIND HALF OF THEM IN THE YELLOW BOOKS OF THE 16 PEOPLE WITH A LAST NAME BEGINNING WITH A I FOUND FIVE ALPERT ANDERSON ANTOS ARONS AND AUSTEIN IN THE FEDERAL YELLOW BOOK THEY WORK IN AN EXECUTIVE BRANCH AGENCY AND THREE IN THE CONGRESSIONAL YELLOW BOOK ALBERGHINI ALTMIRE AND ATKINSON KREMMIE I HOPE YOU FIND THIS INFORMATION USEFUL BECAUSE I WORK THE WASHINGTON POLICY GAME PLEASE DO NOT PUBLICLY ASSOCIATE MY NAME WITH ANY OF THE INFORMATION I HAVE SUPPLIED IN THIS LETTER I NEVER HEARD OF ANY OF THEM I WOULD BE INTERESTED IN KNOWING WHAT MAKES THEM QUALIFIED TO MAKE SUCH IMPORTANT DECISIONS WHY ARE AMA MEMBERS REFUSED RIGHTS TO ATTEND MEETINGS BEFORE WE HAVE SUCH RADICAL CHANGES IN HEALTH CARE IT WOULD BE GOOD TO KNOW THAT QUALIFIED PEOPLE WERE INVOLVED IN MAKING THOSE CHANGES AFTER YOU COMPLETE THIS LIST A LIST OF THE 150 SPECIFIC BUDGET CUTS WOULD BE EQUALLY INTERESTING HEALTH CARE TASK FORCE NAMES NANCY DREW SEEMS VAGUELY FAMILIAR BUT I'M SURPRISED BEN CASEY'S NAME IS MISSING COME TO THINK OF IT WHY ISN'T TIMOTHY LEARY ON THE LIST MANY TIMES SINCE THE ELECTION OF PRESIDENT CLINTON I HAVE THOUGHT THAT YOUR EDITORIAL PAGE HAS FINALLY HIT THE NADIR OF YOUR SNIDE INSINUATING DISTORTING SARCASTIC SNICKERING AND PEJORATIVE WRITINGS ON ANYONE WHO DOESN'T BUY YOUR UNRECONSTRUCTED RIGHTWING PHILOSOPHY HOWEVER WITH DO YOU KNOW THESE PEOPLE ASKING FOR INFORMATION ABOUT THE SECRET LIST OF THE FIRST LADY'S HEALTH CARE TASK FORCE YOU HAVE CHALKED UP A NEW MARK WHAT IS THE PURPOSE OF GETTING YOUR READERS TO SNITCH ON THESE NAMES AH FOND RECOLLECTIONS OF JOE MCCARTHY WAVING HIS LISTS OF COMMUNISTS IN THE STATE DEPARTMENT GOVERNMENT IMAGINE MY SURPRISE READING YOUR LIST OF MYSTERY MEMBERS OF HILLARY CLINTON'S HEALTH REFORM TASK FORCE TWO GENTLEMEN ON THIS LIST WERE CLASSMATES OF MINE AT DARTMOUTH IN THE LATE '60S IN FACT IN SCHOOL THE THREE OF US FORMED A PSYCHEDELIC BAND KNOWN AS THE CRINKLES STUART DOG BREATH SCHMID WAS ON BASS RICHARD CALL ME DICK FRANK POUNDED THE SKINS AND I PLAYED GUITAR OUR LEAD SINGER WAS JACO PASTORIUS HIS NAME I DID NOT SEE ON THE TASK FORCE LIST I RECALL A ROBERT WREN ON THE PGA TOUR DURING THE MID1980S BUT DOUBT THIS IS THE ONE ON YOUR LIST AS MOST PROFESSIONAL GOLFERS ARE REPUBLICANS HERE'S A LITTLE HELP WITH SOME OF HILLY'S CREW I KNOW THEM WELL BEAUREGARD KAREN MY GRAY CAT WAS NAMED BEAUREGARD BEFORE WE KNEW SHE WAS A GIRL SHE'S NEVER TOLD US HER FIRST NAME IT COULD BE KAREN BUT I ALWAYS THOUGHT IT WAS KITTY DREW NANCY TOO OBVIOUS ASK MY WIFE ABOUT HER CHILDHOOD READING HABITS JOHNSON DON ARE YOU KIDDING DON'T YOU WATCH MIAMI VICE PARADISE JULIA A GIRL AND A PLACE I OFTEN DREAM ABOUT BUT HARD TO DEFINE IN SPECIFIC TERMS RAFUSE BOB I'M A STOCKBROKER AND I TALK TO THIS GUY EVERYDAY OFTEN MORE THAN ONCE SORRY I CANNOT IDENTIFY ANY OF THE NAMES ON YOUR LIST I SUGGEST THAT YOU ARE ASKING THE WRONG PEOPLE FOR HELP THIS ADMINISTRATION'S ACTIONS/APPOINTMENTS CLEARLY WILL LEAD YOU TO THE LEGAL PROFESSION YOUR DEVOTED KREMLINOLOGIST WILL FIND ABOUT 90 OF THE LIST ARE LAWYERS AND MOST LIKELY HAVE MADE LARGE SUMS OF MONEY FROM THE MALPRACTICE INDUSTRY I HAVE KNOWN JANE MOLLOY FOR 10 YEARS MS MOLLOY IS CURRENTLY A LAWYER WITH THE COMMERCE DEPARTMENT MS MOLLOY HAS BEEN WITH COMMERCE FOR APPROXIMATELY 20 YEARS AND IS INVOLVED IN SUCH ISSUES AS PENSIONS INSURANCE AND PRODUCT LIABILITY I AM SURE THERE ARE FEW PEOPLE IN EITHER THE PUBLIC OR PRIVATE SECTOR WHO ARE MORE DEDICATED THAN MS MOLLOY I MARRIED MS MOLLOY'S DAUGHTER ELIZABETH IN 1989 AFTER WE MET IN LAW SCHOOL AND DATED FOR SIX YEARS TO THE EXTENT THAT IT MAY BE UNIQUE IN THIS CULTURE FOR A SONINLAW TO PRAISE HIS MOTHERINLAW I SHALL END BY NOTING THAT JANE MOLLOY IS ONE OF THE FINEST PEOPLE I HAVE EVER MET IF THERE IS A LISTING OF PROFESSIONAL ECONOMISTS TRY THAT SOURCE YOU MAY WANT TO CONCENTRATE ON ACADEMIC ECONOMISTS I OFFER THIS QUALIFICATION BECAUSE I DOUBT WHETHER MANY ECONOMISTS WITH REAL JOBS WOULD BE INVITED TO JOIN THIS EFFORT OR WOULD BOTHER IF THEY WERE ONLY AN ACADEMIC ECONOMIST COULD POSSIBLY BELIEVE HILLARY'S STATEMANAGED PLANS COULD IMPROVE HEALTH CARE DELIVERY AND FINANCIAL MANAGEMENT MY GOD MY OWN BROTHER IN THE ENEMY CAMP AND HE NEVER TOLD ME TOM HERTZ IS A GS14 HEALTH CARE POLICY ANALYST WITH THE DEPARTMENT OF HEALTH AND HUMAN SERVICES HE IS 47 HOLDS A PHD IN DEVELOPMENTAL PSYCHOLOGY FROM STANFORD MARRIED TWO KIDS A DOG AND TWO CATS LIVES IN BETHESDA SEEMS LIKE A NICE GUY TOO YOU JUST NEVER KNOW I FIND THE LIST OF PEOPLE TO BE FRIGHTENING I WORK IN THE MANAGED HEALTH CARE FIELD AND CANNOT FIND THE NAMES OF ANY PEERS WITH EXPERIENCE IN THIS INDUSTRY IT APPEARS THAT THE TASK FORCE IS MADE UP OF POLICY WONKS AND ACADEMICS WHO HAVE NO EXPERIENCE WITH THE PROVISION OF HEALTH CARE I HOPE FOR THE SAKE OF THE AMERICAN PUBLIC YOU HAVE THE WRONG LIST PROBABLY JUST A COINCIDENCE BUT A ROBERT BLOCH WROTE PSYCHO AND A PAUL TIBBETS FLEW THE ENOLA GAY OVER HIROSHIMA TO DROP THE FIRST ATOMIC BOMB I TAKE THIS TO MEAN THE FIRST LADY'S TASK FORCE WILL WREAK HAVOC ON HEALTH CARE AND DRIVE US CRAZY WHILE IT'S WREAKING JIM DUGGAN IS NONE OTHER THAN HACKSAW JIM DUGGAN OF THE WORLD WRESTLING FEDERATION HAVING WORKED IN THE PHARMACEUTICAL INDUSTRY FOR 15 YEARS FOLLOWING A 20YEAR STINT IN THE TRENCHES AS A SOLO MEDICAL PRACTITIONER I'M NOW ACTIVE AS A CONSULTANT IN THE AREA OF DRUG SAFETY AND COST EFFECTIVENESS THE FACT THAT OTHER THAN UWE REINHARDT ONE FINDS NONE OF THE NAMES ONE WOULD EXPECT TO SEE IN THE FIELD OF THE USE OF PHARMACEUTICALS THEIR DEVELOPMENT MARKETING AND ROLE IN MEDICAL THERAPEUTICS IN ADDITION TO OTHER PERSPECTIVES OF MEDICAL CARE MAKES ONE WONDER ABOUT THE MAKEUP OF THIS SELECT TASK FORCE IT'S ALL A MYSTERY THESE PEOPLE CERTAINLY HAVEN'T BEEN INTIMATELY AND VISIBLY INVOLVED IN HEALTH CARE HOSPITALS INSURANCE OR MANAGED CARE BECAUSE IF THEY HAD BEEN I THINK I WOULD HAVE HEARD OF MORE THAN A FEW OF THEM HAVING BEEN INVOLVED IN EMPLOYEE BENEFITS INSURANCE MANAGED CARE AND HEALTH CARE MYSELF FOR 20 YEARS A FEW NAMES ARE RECOGNIZABLE THE REST OF THE INDIVIDUALS MUST BE GOVERNMENT BUREAUCRATS WHO KNOW ONLY HOW TO RUN THE BUREAUCRACY HOW DANGEROUS TRULY AMAZING I HAVE WORKED IN EMPLOYEE BENEFITS FOR 27 YEARS AND MANAGED CARE FOR SEVEN YEARS AND OTHER THAN THOSE YOU NAME I CAN POSITIVELY IDENTIFY ONE PERSON DAVE KASS IF IT'S THE SAME GUY HE IS AN ACTUARY IN CLEVELAND OHIO THERE ARE THREE OTHER NAMES THAT ARE VAGUELY FAMILIAR THANKS FOR THE LIST I AM DAVID R KASS I AM AN ACTUARY AND HAVE BEEN INVOLVED IN MEDICAL CARE ISSUES SINCE 1954 JUST BEFORE THEN I SERVED IN THE PENTAGON IN MILITARY INTELLIGENCE SO I AM PREPARED TO BELIEVE THAT I HAVE BEEN PLACED ON THE TASK FORCE ON HEALTH CARE REFORM WITHOUT MY KNOWLEDGE PERHAPS MY SECURITY CLEARANCE HAS LAPSED AND I MAY NOT BE ENTRUSTED WITH THAT WEIGHTY INFORMATION I AM ALSO A PRINCETON GRADUATE AND HAVE READ SEVERAL ARTICLES BY UWE REINHARDT I WOULD LIKE TO ASSURE YOUR READERS THAT I HAVE NOT KNOWINGLY DONE ANYTHING LET ALONE ANYTHING UNPROFESSIONAL WITH REGARD TO ANY ASSIGNMENTS ON THE TASK FORCE PS I DO HAVE SOME IDEAS SEE RELATED ARTICLE DO YOU KNOW THESE PEOPLE THE FIRST LADIES TASK FORCE ON HEALTH CARE REFORM WSJ MARCH 24 1993 9303260112 930326 WHO'S NEWS SEQUA NAMES QUICKE PRESIDENT NEW YORK JOHN J QUICKE WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF SEQUA CORP FILLING A TWOYEAR OLD VACANCY AT THE MANUFACTURING AND CONSULTING SERVICES CONCERN MR QUICKE 43 YEARS OLD ALSO WAS ELECTED TO THE 11MEMBER BOARD FILLING A VACANCY HE CONTINUES TO DIRECT SEQUA'S OPERATIONS IN MOST OF ITS BUSINESSES AEROSPACE PROPULSION COMPONENTS AND CONSULTING SPECIALTY CHEMICALS METAL COIL COATING CANS AND CAN EQUIPMENT AUXILIARY PRESS EQUIPMENT AND CIGARETTE LIGHTERS THE POSITIONS HAD BEEN VACANT SINCE ROBERT E DAVIS RESIGNED IN FEBRUARY 1991 TO PURSUE OTHER ACTIVITIES THE COMPANY SAID MR QUICKE MOST RECENTLY WAS SENIOR EXECUTIVE VICE PRESIDENT OPERATIONS AND HAS HAD THE CHIEF OPERATING OFFICER'S DUTIES SINCE JUNE 1992 9303260111 930326 ADVERTISING ADS FOR DIETS SPARK INQUIRY BY REGULATORS BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WEIGHTLOSS CLAIMS OF SOME OF THE NATION'S BIGGEST DIETPROGRAM COMPANIES ARE BEING INVESTIGATED BY FEDERAL REGULATORS THE FEDERAL TRADE COMMISSION YESTERDAY SAID THAT FIVE DIETINDUSTRY HEAVYWEIGHTS AS WELL AS A HALF DOZEN OTHER DIET CONCERNS ARE UNDER INVESTIGATION FOR FALSE AND DECEPTIVE ADVERTISING THE FTC IS SPECIFICALLY LOOKING INTO WHETHER THEIR ADS ACCURATELY REFLECT THE PROGRAMS' SUCCESS IN HELPING CUSTOMERS KEEP OFF THE WEIGHT THEY LOSE THE FTC CONFIRMED THE INVESTIGATIONS IN LETTERS TO PHYSICIANS WEIGHT LOSS CENTERS OF AMERICA INC HJ HEINZ CO'S WEIGHT WATCHERS INTERNATIONAL INC UNIT JENNY CRAIG INC DIET CENTER INC AND NUTRI/SYSTEM INC THE LETTERS REJECTED THE COMPANIES' REQUEST THAT THE COMMISSION ISSUE INDUSTRYWIDE ADVERTISING STANDARDS FOR DIET PROGRAMS FTC OFFICIALS SAID THEY WILL CONTINUE TO PURSUE THEIR BROAD INVESTIGATION ON A CASEBYCASE BASIS AND THE AGENCY'S LETTER INDICATED THAT CONSENT AGREEMENTS TO SETTLE POSSIBLE CHARGES HAVE BEEN OFFERED TO SOME COMPANIES BUT THE AGENCY DIDN'T RULE OUT ISSUING BROAD GUIDELINES AT A LATER DATE AS PART OF ITS CONTINUING PROBE INTO DIET PROGRAMS THE FTC ALSO SETTLED DECEPTIVE ADVERTISING CLAIMS AGAINST THREE COMPANIES THAT MANUFACTURE AND MARKET LIQUID PROTEIN DIETS HEALTH MANAGEMENT RESOURCES CORP OF BOSTON MASS UNITED WEIGHT CONTROL CORP OF NEW YORK CITY AND ABBOTT LABORATORIES OF ABBOTT PARK ILL THE COMPANIES WITHOUT ADMITTING TO THE CHARGES AGREED IN SEPARATE SETTLEMENTS NOT TO MISREPRESENT THE LIKELIHOOD OF REGAINING ANY WEIGHT THAT'S LOST OR THE HEALTH RISKS OF THEIR LIQUID PROTEIN DIETS THE COMPANIES REPRESENT A SUBSTANTIAL PORTION OF THE LIQUID PROTEIN DIET INDUSTRY SAID RICHARD KELLY OF THE FTC'S BUREAU OF CONSUMER AFFAIRS LAST YEAR THE COMMISSION SETTLED SIMILAR DECEPTIVE ADVERTISING CHARGES AGAINST THREE OTHER MAJOR COMPANIES IN THE INDUSTRY TAKEN TOGETHER THE SIX CONCERNS REPRESENT NEARLY ALL OF AN ESTIMATED 600 MILLION MARKET FOR LIQUID PROTEIN PRODUCTS MR KELLY SAID THE FTC LETTER TO THE FIVE MAJOR DIETPROGRAM COMPANIES REVEALS THAT THE COMPANIES ARE DISPUTING PARTS OF A DRAFT OF A LEGAL COMPLAINT AGAINST THEM THE COMPANIES APPARENTLY ARE ARGUING OVER THE LEVEL AND KIND OF SCIENTIFIC EVIDENCE THE COMMISSION MAY REQUIRE TO BACK UP CLAIMS THAT THEIR DIET PROGRAMS ARE EFFECTIVE FOR EXAMPLE THE FTC LETTER SAYS THE CONCERNS ARGUE THAT SOME CLAIMS CAN BE BACKED UP WITH A REFERENCE TO A SIGNIFICANT PORTION OF CONSUMERS INSTEAD OF A TOUGHER STANDARD PROPOSED BY THE AGENCY THE COMPANIES ALSO ARGUE THAT A REQUIREMENT THAT THEY HAVE TWO YEARS' WORTH OF DATA TO BACK UP CLAIMS THAT THE DIET PROGRAMS' CLIENTS HAVE KEPT OFF THE POUNDS THEY LOST IS UNREASONABLE THE COMMISSION'S LETTER SAYS THE DRAFT OF ITS ORDER CONTAINS TWO SEPARATE REQUIREMENTS THE COMPANIES WOULD HAVE TO COMPLY WITH THE DIET PROGRAM COMPANIES WOULD HAVE TO ADEQUATELY BACK UP CLAIMS ABOUT THEIR CLIENTS' WEIGHT LOSS AND IF CLAIMS ARE MADE ABOUT THE CLIENTS' ABILITY TO MAINTAIN THE WEIGHT LOSS THE COMPANIES MUST DISCLOSE THE DATA SUPPORTING THOSE CLAIMS THE DIET PROGRAM INDUSTRY INCLUDES LIQUID PROTEIN DIETS AS WELL AS DIET CENTERS THAT SELL PREPACKAGED DEHYDRATED FOOD LIQUID PROTEIN DIETS WHICH INVOLVE GIVING DIETERS 420 TO 800 CALORIES A DAY THROUGH A LIQUID SUPPLEMENT FOR A FEW MONTHS AND THEN SWITCHING THEM TO LOW CALORIE FOOD DIETS ARE DESIGNED TO HELP PEOPLE WHO NEED TO LOSE A LOT OF WEIGHT THE FTC SAYS THE PROGRAMS GENERALLY COST BETWEEN 1400 AND 2800 THE PRODUCTS INVOLVED IN YESTERDAY'S FTC SETTLEMENTS INCLUDE THE HMR FASTING PROGRAM MADE BY HEALTH MANAGEMENT RESOURCES THE UWCC PERMANENCE PROGRAM MADE BY UNITED WEIGHT CONTROL AND NEW DIRECTIONS MADE BY ABBOTT LABORATORIES ABBOTT LABORATORIES ISSUED A STATEMENT SAYING ITS ROSS PRODUCTS DIVISION HAS AGREED TO INCORPORATE CHANGES IN ITS ADS SUGGESTED BY THE FTC BUT DECLINED FURTHER COMMENT OFFICIALS AT HEALTH MANAGEMENT RESOURCES CORP AND UNITED WEIGHT CONTROL CORP COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY OFFICIALS OF WEIGHT WATCHERS SAID THE COMPANY HAS BEEN DISCUSSING WITH THE FTC THE SUBSTANTIATION OF A FEW OF ITS ADS THAT APPEARED BETWEEN 1988 AND 1990 THEY SAID THAT THE AD CLAIMS HAVE BEEN FULLY SUBSTANTIATED AND THAT THE COMMISSION'S PROBE DOESN'T INVOLVE THE HEALTH AND SAFETY OF THE WEIGHT WATCHERS PROGRAM THE COMPANY SAID IT ASKED THE FTC TO ISSUE ADVERTISING GUIDELINES FOR THE INDUSTRY BECAUSE AGREEMENTS WITH SEPARATE COMPANIES WOULD CREATE INCONSISTENCIES AND INEQUITIES A SPOKESMAN FOR NUTRI/SYSTEM SAID THAT CONCERN TOO HAS BEEN DISCUSSING INDUSTRYWIDE STANDARDS WITH THE COMMISSION AND ADDED THAT THE COMPANY IS COOPERATING WITH THE FTC JENNY CRAIG'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SID CRAIG SAID WE BELIEVE JENNY CRAIG IS IN COMPLIANCE WITH ALL ADVERTISING REGULATIONS THE OTHER COMPANIES COULDN'T BE REACHED FOR COMMENT 9303260110 930326 MURDOCH TO OFFER INTERIM PROPOSAL TO ACQUIRE POST BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RUPERT MURDOCH WILL SUBMIT A PLAN TO A FEDERAL BANKRUPTCY JUDGE BY MONDAY TO TAKE CONTROL OF THE AILING NEW YORK POST FOR A TEMPORARY PERIOD THE FIRST STEP IN A PLAN TO BUY THE PAPER HE ONCE OWNED REPRESENTATIVES OF MR MURDOCH HEAD OF THE WORLDWIDE MEDIA GIANT NEWS CORP SAID THE JUDGE AGREED TO CONSIDER THE PLAN THAT WOULD ALLOW MR MURDOCH TO OPERATE THE NEWSPAPER FOR 60 DAYS WHILE HE ATTEMPTS TO CLEAR FEDERAL REGULATIONS THAT CURRENTLY BAR HIM FROM OWNING THE POST THE PAPER IS SAID TO BE RUNNING DANGEROUSLY LOW ON OPERATING CASH AND HASN'T BEEN ABLE TO PAY SOME OF ITS WORKERS SOME PEOPLE AT THE POST SAID MR MURDOCH IS EXPECTED TO SEEK A WAIVER TO FEDERAL COMMUNICATIONS COMMISSION REGULATIONS PROHIBITING OWNERSHIP OF BOTH A NEWSPAPER AND TELEVISION STATION IN THE SAME MARKET AFTER MR MURDOCH BOUGHT THE POST IN 1976 HE ACQUIRED LOCAL TELEVISION STATION WNYWTV IN 1986 AND WAS FORCED TO SELL THE PAPER TWO YEARS LATER LAST NIGHT PATRICK PURCELL CHIEF EXECUTIVE OFFICER OF NEWS CORP'S NEWS AMERICA'S PUBLISHING UNIT SAID MR MURDOCH'S PLAN WOULD BE PUT IN WRITING AND SUBMITTED TO FEDERAL BANKRUPTCY COURT JUDGE FRANCIS CONRAD MR PURCELL SAID MR MURDOCH ALSO WOULD ASK FOR AN EXTRA 30 DAYS IF THE FCC WAIVER HADN'T BEEN OBTAINED MR MURDOCH WILL PAY THE OPERATING EXPENSES OF THE POST WHICH RECENTLY FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION BUT WON'T PAY THE POST'S BACK BILLS DURING THAT PERIOD MR PURCELL SAID THE PLAN ALSO CALLS FOR MAKING AN OFFER TO THE PAPER'S NUMEROUS CREDITORS THAT COULD THEN LEAD TO A PURCHASE OF THE PAPER YESTERDAY AFTERNOON LAWYERS REPRESENTING CREDITORS STAFFERS CURRENT OWNER PETER KALIKOW COURTDESIGNATED FUTURE OWNER ABRAHAM HIRSCHFELD AND MR MURDOCH SPOKE WITH THE JUDGE ON A LENGTHY CONFERENCE TELEPHONE CALL THE CALL WAS A RESULT OF CONCERN BY POST STAFFERS THAT MR HIRSCHFELD ALLEGEDLY WAS FAILING TO PROPERLY MANAGE THE AFFAIRS OF THE PAPER MR HIRSCHFELD WHO IS A MILLIONAIRE REAL ESTATE DEVELOPER WASN'T SIGNING CHECKS TO THE PAPER'S VENDORS PEOPLE AT THE POST SAID ALSO PAYROLL CHECKS TO NONUNION EMPLOYEES SUCH AS CONTRACT WRITERS AND COLUMNISTS ARE SAID TO HAVE BOUNCED MR HIRSCHFELD DIDN'T RETURN CALLS FOR COMMENT BUT PEOPLE AT THE PAPER SAID HE CLAIMED THE FOULUPS WERE SIMPLY A MISTAKE AND WOULD BE CORRECTED NEWS AMERICA'A MR PURCELL SAID NEWS CORP DOESN'T INTEND TO BE IN COMPETITION WITH MR HIRSCHFELD FOR THE POST BUT SHOULD HE BE UNABLE TO PUT ANY MORE MONEY INTO THE POST OR VOIDS HIS MANAGEMENT CONTRACT WE ARE PREPARED TO TRY AND SAVE IT MR PURCELL ADDED THAT THE OVERALL OPERATION OF THE POST IN THE SHORT OR LONG TERM WOULDN'T HAVE A SIGNIFICANT AFFECT ON NEWS CORP'S BOTTOM LINE 9303260109 930326 AMERICAN AIRLINES SUES EEOC TO BLOCK POSSIBLE LARGE FINE IN AGEBIAS CASE BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN AIRLINES SUED THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SEEKING TO STAVE OFF A POSSIBLE MULTIMILLION DOLLAR FINE AND AN AGENCY FINDING THAT THE CARRIER'S HIRING PRACTICES DISCRIMINATE AGAINST OLDER PILOTS IN A REQUEST FOR AN INJUNCTION FILED IN FEDERAL COURT IN FORT WORTH TEXAS THE AMR CORP UNIT ASKED THAT THE AGENCY BE BARRED FROM FORCING THE AIRLINE TO ABANDON ITS UPOROUT PILOT PROMOTION POLICY UNDER THAT PRACTICE AMERICAN HIRES ONLY PILOTS WHO ARE ABLE TO BECOME CAPTAINS BEFORE THE FEDERALLY MANDATED RETIREMENT AGE OF 60 PILOTS WHO DECLINE A MOVE TO CAPTAIN OR WHO FAIL TESTS SUCH AS CHECKRIDES IN THEIR BID FOR PROMOTION ARE FIRED PILOTS WHO ARE TOO OLD TO MAKE CAPTAIN AREN'T HIRED AT ALL AMERICAN SAYS ITS POLICY HAS NOTHING TO DO WITH DISCRIMINATION IT'S A SAFETY PRACTICE AND COURT CHALLENGES HAVE SHOWN THAT THE DECISION ON HOW TO RUN A SAFE AIRLINE BELONGS TO THE AIRLINE AN AMERICAN SPOKESMAN SAID THE CARRIER ALSO REQUESTED A DECLARATORY JUDGMENT THAT WOULD FIND ITS HIRING POLICY A BONA FIDE OCCUPATIONAL QUALIFICATION AND THUS NOT A VIOLATION OF THE AGE DISCRIMINATION IN EMPLOYMENT ACT A REPRESENTATIVE OF THE EEOC COULDN'T BE REACHED LATE YESTERDAY EVENING DURING THE 1980S EXPANSIONMINDED AMERICAN WAS GROWING QUICKLY ENOUGH THAT PILOTS COULD MAKE CAPTAIN IN AS FEW AS FIVE YEARS BUT AS THE AIRLINE HAS CUT BACK ITS GROWTH IN RECENT YEARS THE MOVE UP TO CAPTAIN TAKES LONGER CONSEQUENTLY NEWLY HIRED PILOTS HAVE BEEN YOUNGER AND YOUNGER IN ITS COMPLAINT AMERICAN SAID THE EEOC HAS BEEN INVESTIGATING THE AIRLINE'S PILOT HIRING PRACTICES SINCE 1990 AND SINCE NOVEMBER 1991 ISSUED SEVERAL DETERMINATIONS THAT THE UPOROUT POLICY IS DISCRIMINATORY RECENTLY THE AGENCY DEMANDED THAT AMERICAN ABANDON THE PRACTICE THREATENED TO IMPOSE A HEAVY FINE IF IT DOESN'T AND TOLD AMERICAN IT IS CLOSE TO FILING A SUIT CHALLENGING THE POLICY FOR ITS PART AMERICAN MAINTAINS ITS POLICY IS JUSTIFIED BY BUSINESS NECESSITY THE AIRLINE SAYS IT HAS FOUND THAT THE SAFEST COCKPIT IS ONE IN WHICH PILOTS ARE ENCOURAGED TO WORK THEIR WAY UP FROM FLIGHT ENGINEER TO CAPTAIN OUR OBJECTIVE IS NOT JUST TO PROVIDE A SAFE ATMOSPHERE BUT TO PROVIDE THE SAFEST POSSIBLE AND THIS POLICY IS PART OF THAT SAID AN AMERICAN SPOKESMAN TO INTRODUCE THE CONCEPT OF AGE DISCRIMINATION MISSES THE ENTIRE POINT LEWIS SMITH PRESIDENT OF FUTURE AIRLINE PROFESSIONALS OF AMERICA AN AVIATION CONSULTING GROUP SAID THAT IT WAS COMMON FOR AIRLINES IN THE 1970S TO SEND OUT LETTERS SAYING THEY DIDN'T HIRE ANYONE OVER AGE 30 BUT MOST AIRLINES HAVE ABANDONED THAT PRACTICE AMERICAN AIRLINES IS THE ONLY AIRLINE I KNOW OF THAT HAS THE UPOROUT POLICY HE SAID 9303260108 930326 POWER SWITCH AT THE WHITE HOUSE TITLES OFFER FEW CLUES ABOUT REAL INFLUENCE CLINTON'S FRIENDS HOLD SWAY OVER SOME IN THE CABINET SOMETIMES BRUISING EGOS INSIDERS CALL IT TEAMWORK' BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RONALD REAGAN WANTED TO ELIMINATE GOVERNMENT BILL CLINTON WANTS TO CIRCUMVENT IT SINCE TAKING OFFICE TWO MONTHS AGO MR CLINTON HAS ADOPTED A POLICYMAKING PROCESS THAT IS STRIKINGLY DIFFERENT FROM THAT OF OTHER RECENT PRESIDENTS HIS MODEL IS NEITHER THE RIGID CENTRALIZED WHITE HOUSE STAFF OF RICHARD NIXON NOR THE DECENTRALIZED CABINET GOVERNMENT OF JIMMY CARTER INSTEAD HIS COMMITTEES TASK FORCES AND LOOSELY DEFINED CLUSTERS OF FRIENDS AND ADVISERS REPRESENT A DELIBERATE EFFORT TO GET AROUND THE ESTABLISHED CHANNELS OF GOVERNMENT IT'S LIBERATION MANAGEMENT SAYS DEREK SHEARER WHO IS HIMSELF A CASE IN POINT HE WEARS THE SOMEWHAT UNGLAMOROUS TITLE OF DEPUTY UNDERSECRETARY OF COMMERCE FOR ECONOMIC AFFAIRS BUT AS A CERTIFIED LONGTIME FRIEND OF BILL HE HAS ACCESS TO THE FIRST FAMILY THAT MOST CABINET SECRETARIES WOULD ENVY HE EVEN PROVIDED CHELSEA CLINTON WITH A COMPUTER DISK ON THE PRESIDENT'S ECONOMIC PLAN GENERATED BY THE COMMERCE DEPARTMENT FOR HER TO TAKE TO SCHOOL MR CLINTON'S APPROACH HAS THE BENEFIT OF BRINGING FRESH THINKING TO THE NATION'S PROBLEMS RELATIVELY UNENCUMBERED BY THE INERTIA OF THE VAST FEDERAL BUREAUCRACY BUT IT HAS SIGNIFICANT RISKS AS WELL INCLUDING ALIENATING THE PEOPLE AND INSTITUTIONS HE WILL NEED TO PUT THOSE FRESH APPROACHES INTO PRACTICE IN MR CLINTON'S AD HOC WORLD AGENCY NAMES AND JOB TITLES HOLD FEW CLUES TO WHERE THE POWER REALLY IS HEALTHCARE POLICY ISN'T LED BY THE HEALTH AND HUMAN SERVICES DEPARTMENT BUT BY FREEFLOATING WHITE HOUSE ADVISER IRA MAGAZINER THE PRESIDENT'S MANAGEMENTREFORM INITIATIVE ISN'T RUN BY THE OFFICE OF MANAGEMENT AND BUDGET BUT BY ELAINE KAMARCK WHO REPORTS TO VICE PRESIDENT GORE AND THE CZAR OF RUSSIAN POLICY ISN'T THE SECRETARY OF STATE OR NATIONAL SECURITY ADVISER ANTHONY LAKE BUT MR CLINTON'S FRIEND FORMER JOURNALIST STROBE TALBOTT WHO HAS BEEN NOMINATED TO BE AN AMBASSADORATLARGE IT WAS MR TALBOTT'S HOUSE THAT THE PRESIDENT RECENTLY VISITED FOR AN IMPROMPTU DINNER AND A ONEONONE DISCUSSION THAT RANGED FROM FAMILY MATTERS TO RUSSIAN POLICY MEANWHILE SOME CABINET SECRETARIES HAVE LEARNED JUST HOW LIMITED THEIR AUTHORITY REALLY IS ENERGY SECRETARY HAZEL O'LEARY HAD LITTLE IF ANY INFLUENCE OVER THE PRESIDENT'S PROPOSED ENERGY TAX WHICH WOULD BE THE MOST IMPORTANT CHANGE IN ENERGY POLICY IN A DECADE AND HAS HAD NO PRIVATE MEETINGS WITH THE PRESIDENT SINCE TAKING OFFICE DEFENSE SECRETARY LES ASPIN WHO SOME THOUGHT WOULD PROVIDE FOREIGNPOLICY VISION HAS BEEN REPEATEDLY BEHIND THE POWER CURVE PARTLY BECAUSE OF HIS HEALTH PROBLEMS AND TRANSPORTATION SECRETARY FEDERICO PENA WATCHED HIS RECOMMENDATIONS FOR HANDLING BRITISH AIRWAYS INVESTMENT IN USAIR GET SECONDGUESSED BY THE PRESIDENT AND A HOST OF OTHER OFFICIALS AT A SATURDAYNIGHT SESSION IN THE WHITE HOUSE MOREOVER THERE IS A PRICE TO PAY FOR CHALLENGING MR CLINTON'S UNORTHODOX ARRANGEMENTS DEPUTY BUDGET DIRECTOR ALICE RIVLIN FOR INSTANCE ARGUED THAT THE PRESIDENT'S EFFORT TO OVERHAUL THE MANAGEMENT OF GOVERNMENT OUGHT TO BE RUN FROM THE OFFICE OF MANAGEMENT AND BUDGET WHICH AFTER ALL DOES HAVE MANAGEMENT AS ITS FIRST CHARGE INSTEAD MR CLINTON DECIDED TO PUT THE INITIATIVE UNDER THE VICE PRESIDENT'S CONTROL OFFICIALS SAY HER FEISTINESS HAS LEFT HER OUT OF FAVOR IN THE WEST WING OF THE WHITE HOUSE WHERE THE PRESIDENT AND HIS CLOSEST AIDES WORK THE FOCUS IS ON TEAMWORK SAYS BRUCE REED DEPUTY POLICY ADVISER TO THE PRESIDENT WHO SAYS MR CLINTON'S GOAL IS TO TEAR DOWN THE WALLS BETWEEN AGENCIES ALLOWING FOR A MORE EFFICIENT GOVERNMENT HIS FEELING WAS THAT THERE HAD BEEN FAR TOO MUCH INTERAGENCY WARFARE IN PREVIOUS ADMINISTRATIONS AND WHILE MOST OFFICIALS INSIST SUCH TEAMWORK WORKS WELL THE SUBJECT OF WHO WIELDS POWER IS OFTEN A TOUCHY ONE AVIS LAVELLE A SPOKESMAN FOR HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA BRISTLES WHEN ASKED ABOUT MR MAGAZINER'S ROLE IN HEALTH POLICY THIS IS AN HHS INITIATIVE STEERED BY THE WHITE HOUSE NOT BY IRA MAGAZINER THAT DOESN'T GIVE HIM AUTHORITY THAT SUPERSEDES THE SECRETARY OF HHS NOT ALL CABINET SECRETARIES OF COURSE ARE OUTSIDE THE POWER LOOP THE FIRST BABYBOOMER PRESIDENT AND HIS YOUNG AIDES FREQUENTLY DEFER TO THE TWO ELDEST AND MOST EXPERIENCED MEMBERS OF THE CABINET SECRETARY OF STATE WARREN CHRISTOPHER AND TREASURY SECRETARY LLOYD BENTSEN MR BENTSEN'S CLOUT WAS EVIDENT IN HIS CENTRAL ROLE IN DEVISING THE PRESIDENT'S ECONOMIC PLAN AND MR CHRISTOPHER IS ONE OF THE FEW CABINET OFFICIALS TO CUT THROUGH THE MAZE OF COMMITTEES AND TALK DIRECTLY WITH MR CLINTON SEVERAL TIMES A WEEK LABOR SECRETARY ROBERT REICH AND HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS ALSO HAVE SPECIAL STATUS IN PART BECAUSE OF THEIR FRIENDSHIP WITH THE PRESIDENT AND THAT STATUS HAS CLEARLY PAID OFF MR REICH'S LABOR DEPARTMENT WAS ONE OF THE FEW TO ESCAPE THE BUDGET PROCESS WITHOUT TAKING ANY SIGNIFICANT HITS MR CISNEROS LIKEWISE EMERGED FROM THE BUDGET WARS WITH NEW FUNDS FOR A HOST OF PROGRAMS AND THE SECRETARY PERSONALLY FOUGHT OFF OMB EFFORTS TO KILL HOPE 6 A PROGRAM DESIGNED TO HELP THE MOST DISTRESSED PUBLICHOUSING PROJECTS BUT EVEN THE CABINET SECRETARIES THAT HAVE INFLUENCE OFTEN AVOID TRADITIONAL CHANNELS OF EXECUTIVE BRANCH COMMUNICATION AND IN SOME CASES THEY SEEM TO SHARE THE PRESIDENT'S PENCHANT FOR AD HOC GOVERNING ARRANGEMENTS INTERIOR SECRETARY BRUCE BABBITT FOR INSTANCE ANOTHER CLINTON FAVORITE RECRUITED AN OUTSIDE BIOLOGIST FROM THE SMITHSONIAN INSTITUTION TO SET UP A BIOLOGICAL SURVEY A MAP OF THE NATION'S ECOSYSTEMS MODELED ON THE US GEOLOGICAL SURVEY THAT RUFFLED FEATHERS AT THE INTERIOR DEPARTMENT'S FISH AND WILDLIFE SERVICE WHERE OFFICIALS SAY THEY KNEW LITTLE ABOUT THE SURVEY BEFORE IT WAS ANNOUNCED EVEN THOUGH THEY WERE BEING ASKED TO STAFF THE PROJECT THERE IS CONCERN AT DIFFERENT LEVELS AT FISH AND WILDLIFE ABOUT THE PLAN ACKNOWLEDGES KEVIN SWEENEY MR BABBITT'S SPOKESMAN IF THE CLINTON ADMINISTRATION'S AMORPHOUS STRUCTURE HAS ANY PARALLEL IN PREVIOUS PRESIDENCIES IT MAY BE IN THE WAY FRANKLIN D ROOSEVELT RAN HIS ADMINISTRATION BUT THE GOVERNMENT WAS MUCH SMALLER AND LESS COMPLEX THEN SUCH AN APPROACH NOW AMOUNTS TO A BOLD BUT ALSO RISKY EXPERIMENT FROM WHAT YOU SEE ON THE OUTSIDE IT IS A SEVERELY UNDERORGANIZED PRESIDENCY THERE IS ALMOST A KIND OF CONTEMPT FOR THE ROUTINE SAYS PRINCETON POLITICAL SCIENTIST FRED GREENSTEIN THAT HE ADDS IS WHAT GAVE US THE BAY OF PIGS WITH KENNEDY THERE IS LITTLE DOUBT THAT MR CLINTON'S ASSORTMENT OF CLEVER ADVISERS WORKING OUTSIDE THE SYSTEM CAN DEVISE POLICY MORE QUICKLY THAN A LUMBERING BUREAUCRACY BUT THE DANGER IS THEY MAY LOSE ACCESS TO THE INSTITUTIONAL MEMORY AND KNOWLEDGE OF THE GOVERNMENT THAT AGENCIES CAN OFTEN PROVIDE THE BENEFIT OF HAVING A TEAM THAT WORKS TOGETHER AND DEALS WITH THESE SITUATIONS IS THEIR LEARNING CURVE SAYS RICHARD CHENEY THE FORMER CHIEF OF STAFF FOR PRESIDENT FORD MR CHENEY WHO WAS ALSO DEFENSE SECRETARY UNDER PRESIDENT BUSH RECALLS THAT THE LAST ADMINISTRATION LEARNED FROM EACH MILITARY ENCOUNTER CONTRIBUTING TO THE PRECISION OF DESERT STORM WITH AN AD HOC SERIES OF ARRANGEMENTS HE SAYS I DON'T KNOW HOW YOU GET THAT INSTITUTIONAL MEMORY BUILT INTO THE PROCESS ARE YOU GOING TO HAVE THE SAME GROUP TOGETHER NEXT WEEK WHEN YOU HAVE TO DO AGRICULTURAL POLICY FOR MR CLINTON THE BENEFIT OF THIS ARRANGEMENT IS BOTH FLEXIBILITY AND CONTROL HE HAS CHOSEN PEOPLE WHO MOSTLY LACK LARGE POLITICAL CONSTITUENCIES OF THEIR OWN MAKING THEM LOYAL PRIMARILY TO HIM AS A RESULT IF THE PRESIDENT BRUISES EGOS OR ULTIMATELY DISMISSES PEOPLE THERE WOULDN'T BE A PUBLIC OUTCRY THAT CREATES UNUSUALLY HIGH CAMARADERIE AMONG THE CORE GROUP OF PEOPLE ROUTINELY TAPPED FOR ADVICE BUT IT ALSO LIMITS THE POWER OF ANY ONE PERSON TO PROVIDE A CHECK ON THE PRESIDENT'S ACTIONS MOREOVER THE CLINTON AD HOCRACY RAISES THE QUESTION OF WHETHER GOVERNMENT EMPLOYEES WHO HAVE BEEN CUT OUT OF THE DECISIONMAKING PROCESS CAN BE EXPECTED TO SUCCESSFULLY IMPLEMENT THE POLICIES THAT RESULT ROBERT RUBIN THE FORMER INVESTMENT BANKER WHO HEADS MR CLINTON'S NATIONAL ECONOMIC COUNCIL HAD A TALK ONE RECENT EVENING WITH MR CISNEROS ABOUT THE DIFFICULTIES OF IMPLEMENTING POLICY BORN AWAY FROM THE AGENCIES BOTH WANTED TO ENSURE THAT THEY HAD COOPERATION IN THE AGENCIES AS MR RUBIN PUT IT AT SOME LEVEL WAY BELOW THE SECRETARIES OF ALL THE NEW DECISIONMAKING ARRANGEMENTS IN THE CLINTON ADMINISTRATION IT IS MR RUBIN'S NATIONAL ECONOMIC COUNCIL THAT HAS EMERGED AS THE MOST POWERFUL THE WALL STREET DEALMAKER HAS BECOME THE WHITE HOUSE BROKER AND HIS STAFF FIELDS THE MOST IMPORTANT TASK FORCES THE COUNCIL'S INFLUENCE IS SEEN ACROSS THE ECONOMIC POLICY SPECTRUM ON TRADE ISSUES FOR INSTANCE MR RUBIN'S COUNCIL HAS TAKEN CHARGE OF SETTING POLICY LEAVING TRADE REPRESENTATIVE MICKEY KANTOR TO BE LARGELY A NEGOTIATOR RATHER THAN A POLICY MAKER IT IS A GRUELING TASK SAYS MR RUBIN OF HIS COUNCIL'S WORK EVERY DAY YOU HAVE TO WORK THIS PROCESS IT DOESN'T WORK NATURALLY BY ITSELF AT THE SAME TIME THE OFFICE OF MANAGEMENT AND BUDGET OFTEN THE CENTER OF POLICY MAKING BECAUSE OF ITS BUREAUCRATIC CHOKEHOLD ON THE REST OF THE EXECUTIVE BRANCH HAS SEEN ITS INFLUENCE DECLINE SHARPLY IT IS OVERSHADOWED BY MR RUBIN'S COUNCIL AND NO LONGER DICTATES POLICY MR CLINTON'S FLEXIBLE APPROACH MEANS ADVICE CAN COME FROM UNLIKELY PLACES IT WAS VICE PRESIDENT GORE FOR INSTANCE NOT SECRETARY OF STATE CHRISTOPHER OR MR LAKE THE NATIONAL SECURITY ADVISER WHO A WEEK AGO ARRANGED A SERIES OF BRIEFINGS ON RUSSIA FOR THE PRESIDENT WALTER DELLINGER A LAWYER IN THE WHITE HOUSE COUNSEL'S OFFICE DRAFTED THE PRESIDENT'S STATEMENT ON THE FLORIDA SHOOTING OF AN ABORTIONCLINIC DOCTOR RATHER THAN THE PRESIDENT'S COMMUNICATIONS STAFF AND IT WAS MARCIA HALE WHO PLANS THE PRESIDENT'S SCHEDULES WHO CAME UP WITH THE IDEA OF INVITING SUPPORTERS OF THE PRESIDENT'S ECONOMIC PLAN TO THE WHITE HOUSE THE DAY AFTER A CRITICAL HOUSE VOTE ON A 16 BILLION STIMULUS PLAN WHILE THE FREEWHEELING MANAGEMENT STYLE CAN SOMETIMES BRUISE EGOS MEMBERS OF THE CLINTON TEAM ARE URGED NOT TO FEEL TRAMPLED BY THE BOSS OR THEIR COLLEAGUES THE FEEL GOOD TONE OF THE ADMINISTRATION WAS SET IN JANUARY AT MR CLINTON'S CAMP DAVID SESSION WITH HIS STAFF CABINETAPPOINTEES AND THEIR DEPUTIES A BIG PART OF WHAT WE DID THERE WAS TO ANTICIPATE AND AVOID ALL OF THOSE KINDS OF TENSIONS AND PROBLEMS SAYS MR GORE AND HOW DID THEY DO THAT WE TALKED IT THROUGH HE SAYS 9303260107 930326 ECONOMY HEALTH INDUSTRY MAY FACE TAXES TO PAY FOR PLAN CLINTON CONSIDERS LEVIES ON PROVIDERS WHO GAIN FROM HIGHER COVERAGE BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS SERIOUSLY CONSIDERING TAXING SEGMENTS OF THE HEALTH INDUSTRY TO FINANCE ITS PLAN TO EXPAND HEALTH COVERAGE TO ALL AMERICANS ACCORDING TO ADMINISTRATION OFFICIALS AND OTHER PEOPLE FAMILIAR WITH THE DELIBERATIONS THE IDEA WOULD BE TO RECLAIM SOME OF THE NEW REVENUE HOSPITALS INSURANCE COMPANIES AND OTHER PROVIDERS OF HEALTH CARE ARE EXPECTED TO REALIZE AS A RESULT OF ADMINISTRATIVE REFORMS AND MOVES TO BRING 37 MILLION PEOPLE CURRENTLY WITHOUT HEALTH COVERAGE INTO THE SYSTEM AN ADMINISTRATION OFFICIAL SAID THE HEALTHCARE TASK FORCE LED BY FIRST LADY HILLARY RODHAM CLINTON IS STUDYING AT LEAST A HALFDOZEN WAYS TO RAISE REVENUE FROM HEALTHCARE PROVIDERS INCLUDING WHAT HE DESCRIBED AS INCENTIVE PROGRAMS AS WELL AS TAXES HE DIDN'T ELABORATE AND SAID NO FINAL DECISIONS HAVE BEEN MADE PRESIDENT CLINTON SIGNALED THE ADMINISTRATION'S INTEREST IN THE IDEA AT HIS NEWS CONFERENCE THIS WEEK I CAN TELL YOU THIS I WILL NOT ASK THE AMERICAN PEOPLE TO PAY FOR A HEALTHCARE PLAN UNTIL THE PEOPLE WHO WILL BE MAKING MONEY OUT OF THE CHANGES THAT WE PROPOSE ARE ASKED TO GIVE BACK SOME OF THE MONEY THEY WILL MAKE HE SAID LATER HE ADDED KEEP IN MIND THESE CHANGES WILL SAVE MASSIVE AMOUNTS OF MONEY IMMEDIATELY TO SOME OF THE HEALTHCARE PROVIDERS PEOPLE FAMILIAR WITH THE MEASURES UNDER REVIEW SAID SOME OF THE OPTIONS INCLUDE TAXING HEALTH INSURANCE COMPANIES ON THE NEW PREMIUMS THEY COLLECT SOME ARGUE THAT INSURANCE COMPANIES WILL RECEIVE A WINDFALL IN THE FORM OF NEW PREMIUM INCOME IF EMPLOYERS AS EXPECTED ARE REQUIRED TO BUY HEALTH COVERAGE FOR THEIR WORKERS ONE IDEA IS TO TAX INSURERS A PERCENTAGE OF THEIR ADDITIONAL PREMIUMS RECEIPTS FOR EXAMPLE IF A COMPANY COLLECTED 3 MILLION IN PREMIUMS THE YEAR BEFORE THE NEW HEALTH SYSTEM WAS IN PLACE AND 35 MILLION DURING THE FIRST YEAR AFTER ITS ENACTMENT THEY WOULD PAY A TAX ON THE ADDITIONAL 500000 WORKING GROUPS ADVISING THE TASK FORCE ALSO ARE STUDYING THE IDEA OF TAXING NEW PREMIUMS TAKEN IN BY HEALTH MAINTENANCE ORGANIZATIONS SOME PEOPLE HOWEVER ARGUE AGAINST THIS BECAUSE THE ADMINISTRATION IS TRYING TO ENCOURAGE USE OF HMOS AND OTHER FIXEDPRICE PREPAID HEALTH PLANS TAXING HOSPITALS ON NEW REVENUES THIS IDEA IS BASED ON THE ASSUMPTION THAT UNIVERSAL HEALTH COVERAGE WOULD GREATLY REDUCE INDEED VIRTUALLY ELIMINATE THE NUMBER OF UNINSURED OR CHARITY CARE PATIENTS THAT HOSPITALS TREAT BECAUSE THESE PATIENTS WOULD BECOME PAYING PATIENTS THE ADMINISTRATION IS LOOKING AT TAXING HOSPITALS ON THE ADDITIONAL REVENUE JUST WHAT WOULD BE TAXED COULD BE DETERMINED BY LOOKING AT THE DROP IN A HOSPITAL'S CHARITY CARE BALANCE AND RISE IN REVENUES IT WAS UNCLEAR WHAT KIND OF TAXES OFFICIALS ARE CONSIDERING FOR DOCTORS ONE IDEA THAT WAS BATTED AROUND EARLIER IS TO TAX THE GROSS RECEIPTS OF ALL HEALTHCARE PROVIDERS INCLUDING DOCTORS BUT IT IS UNCLEAR WHETHER THIS IS CONSIDERED A SERIOUS OPTION ADMINISTRATION OFFICIALS HAVE ESTIMATED THAT EXTENDING HEALTH COVERAGE TO THE UNINSURED COULD COST THE FEDERAL GOVERNMENT AN EXTRA 30 BILLION TO 90 BILLION A YEAR IN SUBSIDIES TO POOR PEOPLE ASSISTANCE FOR SMALL BUSINESSES AND OTHER EXPENSES PRESIDENT CLINTON HAS STRONGLY INDICATED THAT HE IS LIKELY TO PROPOSE RAISING EXCISE TAXES ON CIGARETTES TO HELP FINANCE THE PLAN OTHER OFFICIALS HAVE SAID HIGHER TAXES ALSO ARE LIKELY ON ALCOHOL AND OTHER PRODUCTS CONSIDERED HAZARDOUS TO HEALTH AT BRIEFINGS TWO WHITE HOUSE OFFICIALS RULED OUT A VALUE ADDED TAX OR VAT A KIND OF NATIONAL SALES TAX A VALUE ADDED TAX REPORTEDLY HAD BEEN CONSIDERED TO PAY FOR THE HEALTH PLAN THE PRESIDENT RULED THAT OUT SOME TIME AGO SAID PRESS SECRETARY DEE DEE MYERS ADDED COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS IT WILL NOT BE IN THAT PROPOSAL TAXING HEALTH PROVIDERS COULD BE FAR EASIER TO SELL POLITICALLY THAN SOME OTHER TAX OPTIONS THAT'S BECAUSE A TAX ON PROVIDERS WOULD BE LESS VISABLE TO CONSUMERS THAN SAY TAXING WORKERS ON SOME OF THEIR EMPLOYERPROVIDED HEALTH BENEFITS BUT HEALTH PROVIDERS WHO ALREADY FACE A STRONG POSSIBILITY THAT THE PRESIDENT WILL PROPOSE TEMPORARY GOVERNMENT CONTROLS ON THEIR FEES ARE LIKELY TO PROTEST NEW TAXES IN AN INTERVIEW WITH A HALFDOZEN REPORTERS YESTERDAY HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA SAID OFFICIALS PROBABLY WOULD START TO DECIDE WHAT WILL GO INTO THE PRESIDENT'S HEALTH PACKAGE IN THE NEXT FEW WEEKS SHE SAID THERE CURRENTLY ARE NO LEADING OPTIONS FOR FINANCING THE PLAN MR CLINTON HAS PROMISED TO SUBMIT HIS HEALTHCARE LEGISLATION BY THE BEGINNING OF MAY 9303260106 930326 LAW LEGAL BEAT INVESTOR FACES SUIT OVER CLAIMS MADE ON COMPUTER BULLETIN BOARD BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL MEDPHONE CORP HAS SUED AN INVESTOR FOR MAKING ALLEGEDLY FALSE STATEMENTS ABOUT THE COMPANY ON A COMPUTER BULLETIN BOARD IN WHAT'S APPARENTLY THE FIRST CASE OF ITS KIND MEDPHONE A HEALTHTECHNOLOGY COMPANY CLAIMS IN ITS SUIT THAT AN INVESTOR INTENTIONALLY MADE FALSE STATEMENTS ON PRODIGY'S MONEY TALK COMPUTER BULLETIN BOARD ABOUT MEDPHONE MEDPHONE CLAIMS THE STATEMENTS DROVE DOWN THE PRICE OF ITS STOCK AND SCARED AWAY INVESTORS LAWYERS SAY MEDPHONE'S SUIT IS THE FIRST ALLEGING SECURITIESLAW VIOLATIONS AND DEFAMATION STEMMING FROM STATEMENTS MADE ON A COMPUTER BULLETIN BOARD SOME ATTORNEYS SAY SUCH LEGAL ACTION COULD FRIGHTEN AWAY BULLETIN BOARD USERS AND POSE RISKS FOR THE COMPANIES THAT RUN THE COMPUTER SERVICES PRODIGY WASN'T NAMED AS A DEFENDANT IN MEDPHONE'S SUIT BUT PRODIGY IS POTENTIALLY VULNERABLE TO SUCH SUITS FOR FAILING TO SCREEN THE MESSAGES FOR INSTANCE A PROSPECT THAT TROUBLES GEORGE PERRY PRODIGY'S GENERAL COUNSEL MR PERRY SAYS PRODIGY'S SYSTEMS CARRY ABOUT 60 MILLION MESSAGES EACH YEAR PRODIGY IS A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO IT WOULD BE VIRTUALLY IMPOSSIBLE FOR US PARTICULARLY IN THE CASE OF LIBEL TO DO THE KIND OF FACTCHECKING AND ANALYSIS THAT A TRADITIONAL NEWSPAPER DOES TO PROTECT AGAINST LIBEL CLAIMS SAYS MR PERRY MR PERRY SAYS PRODIGY HAS COMPLIED WITH SUMMONSES FROM LAWYERS FOR MEDPHONE AND PETER J DENIGRIS THE INVESTOR WHO WAS SUED TO RELEASE NAMES OF ABOUT 10 OTHER BULLETIN BOARD USERS WHO SWAPPED MESSAGES WITH MR DENIGRIS MR PERRY SAYS THAT ONCE THE WORD GOT AROUND ABOUT MEDPHONE'S CLAIMS THE MONEY TALK BULLETIN BOARD WAS ABUZZ WITH MESSAGES FROM HUNDREDS OF USERS ABOUT WHAT THE SUIT MIGHT MEAN FOR THEM BUT A PRODIGY SPOKESMAN SAYS THE LAWSUIT HASN'T FRIGHTENED AWAY USERS SO FAR MEDPHONE'S SOLE TARGET IN THE LITIGATION IS MR DENIGRIS OF BABYLON NY MR DENIGRIS A LOCAL GOVERNMENT WORKER WHO EARNED 47000 LAST YEAR SAID HE HAD A LOSS OF 9000 ON MEDPHONE'S STOCK MR DENIGRIS SAYS THAT IF HE HAD ANY NOTION THAT USING THE BULLETIN BOARD WOULD HAVE SUBJECTED HIM TO A LIBEL SUIT AND ALLEGATIONS OF SECURITIES FRAUD HE WOULD NEVER HAVE BOUGHT A PERSONAL COMPUTER I HAVE EXPRESSED MY OPINION ON HUNDREDS OF COMPANIES MR DENIGRIS SAYS IF THIS IS WHAT COMPUTER BULLETIN BOARDS ARE ABOUT MY GOODNESS IN THE LAWSUIT FILED IN FEDERAL COURT IN NEWARK NJ IN SEPTEMBER MEDPHONE IS ASKING FOR AN UNSPECIFIED AMOUNT IN DAMAGES FOR THE DECLINE IN THE STOCK'S VALUE SINCE APRIL WHEN MR DENIGRIS BEGAN HIS ELECTRONIC CONVERSATIONS FROM THE TIME OF THE BULLETIN BOARD CONVERSATIONS TO THE FILING OF THE SUIT THE COMPANY'S STOCK PRICE FELL TO 375 CENTS FROM 175 A SHARE THE PARAMUS NJ COMPANY WHICH IS TRADED ON THE AMERICAN STOCK EXCHANGE SAID ITS TRADING VOLUME ALSO HAS DECLINED STEEPLY MEDPHONE MARKETS TRANSTELEPHONIC DEFIBRILLATORS DEVICES THAT ALLOW DOCTORS TO REMOTELY TRANSMIT COMPUTER SIGNALS VIA TELEPHONE TO A SYSTEM THAT CAN GIVE A HEART PATIENT SHOCK THERAPY THE DENIGRIS MESSAGES THAT MEDPHONE ALLEGES ARE LIBELOUS AND VIOLATED SECURITIES LAW INCLUDE THE BOTTOM LINE IS THAT INSIDERS ARE WAITING TO UNLOAD BIG AMOUNTS OF THE STOCK BEFORE THE COMPANY COLLAPSES AND NO CASH NO SALES NO PROFITS AND TERRIBLE MANAGEMENT MEDPHONE SAID IN ITS SUIT THAT THE STATEMENTS WEREN'T TRUE THOMAS F CHANSKY A LAWYER WITH LYNCH MARTIN IN NORTH BRUNSWICK NJ WHICH REPRESENTS MR DENIGRIS SAYS HE SEES NO LINK BETWEEN THE REMARKS AND THE TAILSPIN THE STOCK PRICE TOOK HE SAYS HE'LL ASK THAT MEDPHONE BRING IN A SECURITIES EXPERT TO TRY TO ESTABLISH SUCH A CONNECTION HE SAYS HIS CLIENT WAS SIMPLY EXPRESSING AN OPINION JUST AS ANY INVESTOR MIGHT SHARE BUSINESS GOSSIP AT A COCKTAIL PARTY LAWYERS SAY LITTLE HAS BEEN ESTABLISHED ABOUT THE LEGAL LIABILITY OF USERS AND OWNERS OF COMPUTER BULLETIN BOARDS ONLY ONE OTHER CASE AGAINST BULLETINBOARD OPERATOR COMPUSERVE HAS DEALT WITH THE ISSUE IN A RULING IN THAT CASE COMPUSERVE WAS LIKENED TO A BOOKSELLER WHICH HAS LITTLE CONTROL OVER THE CONTENTS OF THE BOOKS IT SELLS AND WAS HELD NOT LIABLE FOR DEFAMATORY STATEMENTS ROBERT B CHARLES A SENIOR ASSOCIATE IN THE WASHINGTON OFFICE OF NEW YORK LAW FIRM WEIL GOTSHAL & MANGES SAYS MEDPHONE'S CASE IS SIGNIFICANT BECAUSE WE'RE BEGINNING TO PUT TOGETHER THE FIRST PIECES OF A PUZZLE WITH RESPECT TO LEGAL RIGHTS AND OBLIGATIONS THAT ARISE FROM THIS NEW MEDIUM POTOMAC ELECTRIC POWER CO AGREED TO PAY 383 MILLION TO SETTLE ALLEGATIONS THAT IT DISCRIMINATED AGAINST BLACK AND WOMEN EMPLOYEES AND JOB APPLICANTS THE SETTLEMENT CONCLUDES A SERIES OF CLASSACTION AND INDIVIDUAL LAWSUITS FILED SINCE 1986 ACCUSING THE WASHINGTON DC AREA UTILITY OF ILLEGAL HIRING AND PROMOTION PRACTICES THE AGREEMENT RECEIVED PRELIMINARY APPROVAL FROM US DISTRICT JUDGE ROYCE C LAMBERTH IN WASHINGTON AND A HEARING TO CONSIDER FINAL APPROVAL OF THE SETTLEMENT IS SCHEDULED FOR JUNE AN ESTIMATED 20000 EMPLOYEES FORMER EMPLOYEES AND APPLICANTS WILL BE ELIGIBLE TO RECEIVE BENEFITS UNDER THE SETTLEMENT SAID PAUL SPRENGER AN ATTORNEY FOR THE PLAINTIFFS PAYMENTS FOR INDIVIDUAL CLASS MEMBERS WILL RANGE FROM 1000 TO 100000 THE ATTORNEY SAID WITH INTEREST ROUGHLY 40 MILLION WILL BE DISTRIBUTED INCLUDING 12 MILLION FOR ATTORNEYS' FEES AND COSTS HE ADDED PEPCO DIDN'T ADMIT ANY WRONGDOING AND SAID IN A STATEMENT THAT IT AGREED TO THE SETTLEMENT TO AVOID FURTHER LITIGATION WITH ITS DIVISIVE IMPACT ON OUR 5000 EMPLOYEES AS PART OF THE SETTLEMENT THE COMPANY ALSO AGREED TO MAKE SOME CHANGES IN ITS INTERNAL HIRING TRAINING PROMOTION AND DISCIPLINARY PROCEDURES MR SPRENGER SAID MERCHANTSHIPPING COMPANIES CAN'T BE HIT WITH PUNITIVE DAMAGES IN MARITIME ASBESTOS CASES A FEDERAL APPEALS COURT RULED THE APPEALS COURT IN CINCINNATI VACATED A JURY'S 650000 PUNITIVEDAMAGES AWARD TO THE ESTATE OF A SEAMAN WHO DIED OF LUNG CANCER AFTER BEING EXPOSED TO ASBESTOS THE COURT SAID PUNITIVE DAMAGES WHICH ARE MEANT TO PUNISH AND DETER WRONGDOING WEREN'T SPECIFICALLY ALLOWED BY CONGRESS IN MARITIME WRONGFULDEATH CASES THE JURY ALSO AWARDED 166000 IN COMPENSATORY DAMAGES WHICH WEREN'T AFFECTED BY THE RULING THE RULING APPEARS TO BE THE FIRST BY A FEDERAL APPEALS COURT ON WHETHER PUNITIVE DAMAGES ARE ALLOWED IN SUCH CASES IN LIGHT OF A 1990 SUPREME COURT DECISION ON MARITIME CLAIMS THE SUPREME COURT HOWEVER DIDN'T SPECIFICALLY ADDRESS WHETHER PUNITIVE DAMAGES CAN BE SOUGHT IN MARITIME CASES THE DECISION BY THE SIXTH US CIRCUIT COURT OF APPEALS APPLIES TO LAWSUITS ONLY IN KENTUCKY MICHIGAN OHIO AND TENNESSEE BUT BECAUSE IT IS THE HIGHEST APPELLATE CASE TO ADDRESS THE MATTER IT HAS THE POTENTIAL TO AFFECT EVERY SEAMAN'S LAWSUIT AGAINST A SHIPOWNER SAID HAROLD W HENDERSON AN ATTORNEY WITH CLEVELAND LAW FIRM THOMPSON HINE & FLORY WHO REPRESENTED TWO OF THE DEFENDANTS LEONARD C JAQUES A DETROIT LAWYER FOR THE DECEASED SEAMAN'S ESTATE SAID HE PLANS TO APPEAL THE DECISION RETROACTIVE RIGHTS THE FEDERAL APPEALS COURT IN NEW YORK HAS WEIGHED IN ON WHETHER THE CIVIL RIGHTS ACT OF 1991 APPLIES RETROACTIVELY AN ISSUE THAT'S BEEN WIDELY LITIGATED OVER THE PAST YEAR A THREEJUDGE PANEL SAID THE LAW WHICH BROADENED THE SCOPE OF JOBDISCRIMINATION PROTECTIONS ISN'T RETROACTIVE AT LEAST TWO OTHER APPEALS COURTS HAVE RULED SIMILARLY WHILE THE NINTH US CIRCUIT COURT OF APPEALS IN SAN FRANCISCO SAID THE LAW SHOULD COVER EVENTS THAT OCCURRED BEFORE THE LAW WAS PASSED THE SUPREME COURT HAS AGREED TO RESOLVE THE MATTER CAREER REGRETS A SURVEY OF WOMEN LAWYERS FOUND THAT ONLY 54 SAY THEY WOULD HAVE CHOSEN LAW AS A CAREER IF THEY KNEW 10 YEARS AGO WHAT THEY KNOW NOW WORKING WOMAN MAGAZINE REPORTS IN ITS APRIL ISSUE THAT COMPARES WITH 94 WHO SAID YES IN A 1967 SURVEY THE ARTICLE BLAMES THE DISSATISFACTION LARGELY ON THE COMPETITIVE AND ACRIMONIOUS ATMOSPHERE AT MANY LAW FIRMS RICHARD B SCHMITT IN WASHINGTON CONTRIBUTED TO THIS COLUMN 9303260105 930326 PATTON BOGGS LOSES CLIENT IN FOREIGNCAR PAC FLAP WASHINGTON EMILY'S LIST A FUNDRAISING ORGANIZATION FOR WOMEN CANDIDATES HAS DROPPED PATTON BOGGS & BLOW AS ITS LOBBYIST IN THE WAKE OF CRITICISM OVER THE GROUP'S INVOLVEMENT WITH THE HIGHPROFILE LOBBYINGLAW FIRM EMILY'S LIST HAD RETAINED PATTON BOGGS TO DRAFT AN EXEMPTION IN A PROPOSED CAMPAIGNFINANCE OVERHAUL MEASURE TO ALLOW THE GROUP TO CONTINUE BUNDLING INDIVIDUALS' CHECKS INTO LARGER DONATIONS FOR SPECIFIC CANDIDATES THAT EXEMPTION WOULD ALSO BENEFIT ANOTHER PATTON BOGGS CLIENTS THE POLITICAL ACTION COMMITTEE FOR FOREIGNCAR DEALERS THE ACTION BY EMILY'S LIST IS REPORTED IN TODAY'S NATIONAL JOURNAL PATTON BOGGS DEFENDED ITS ACTIONS VIGOROUSLY A SPOKESMAN SAID THE FIRM DID NOTHING WRONG AND DIDN'T DO THE EMILY'S LIST WORK TO BENEFIT ITS OTHER CLIENT BUT ASKED ABOUT HIS FIRM'S ABRUPT DISMISSAL BY EMILY'S LIST A PATTON BOGGS PARTNER JOHN MOAG JR SAID I PROBABLY WOULD HAVE DONE THE SAME THING AS FOR THE PROPOSED EXEMPTION FOR EMILY'S LIST HOUSE SPEAKER THOMAS FOLEY INDICATED THAT HE WAS SYMPATHETIC TOWARD THE GROUP WITHOUT DISCLOSING DETAILS THE WASHINGTON DEMOCRAT ADDED I'M NOT SUGGESTING THAT IT SHOULD BE THE ONLY GROUP THAT'S EXEMPT 9303260104 930326 LEISURE & ARTS BOOKSHELF LETTERS OF A LITERARY ODD COUPLE BY JAMES BOWMAN GUSTAVE FLAUBERT IS FAMOUS FOR WANTING TO KEEP HIS OWN PERSONALITY OUT OF HIS NOVELS THE ARTIST IN HIS WORK SHOULD BE LIKE GOD IN HIS CREATION HE STATED HIS PRESENCE SHOULD BE FELT EVERYWHERE BUT HE SHOULD NEVER BE SEEN OR AS HE WROTE TO GEORGE SAND IN THIS NEW ENGLISH TRANSLATION OF THEIR LETTERS BY FRANCIS STEEGMULLER AND BARBARA BRAY FLAUBERTSAND THE CORRESPONDENCE EDITED BY ALPHONSE JACOBS KNOPF 430 PAGES 35 I FEEL AN UNCONQUERABLE AVERSION TO PUTTING ANYTHING OF MY HEART ON PAPER I EVEN THINK THAT A NOVELIST HASN'T THE RIGHT TO EXPRESS HIS OPINION ON ANYTHING WHATSOEVER HAS GOD EVER EXPRESSED HIS OPINION SAND WHOSE NOVELS AS OPPOSED TO HER INTERESTINGLY PROTOFEMINIST LIFE HAVE LONG BEEN OUT OF FASHION WAS BY CONTRAST WHOLLY ROMANTIC NOT PUT ANY OF ONE'S HEART INTO WHAT ONE WRITES I DON'T I SIMPLY DO NOT UNDERSTAND FOR MY PART I DON'T SEE HOW ONE CAN PUT ANYTHING ELSE THE RESULT ACCORDING TO THE YOUNG FLAUBERT WAS PROSE IN WHICH EVERYTHING OOZES AND IDEAS TRICKLE BETWEEN WORDS YET BEGINNING IN 1863 WHEN THE 59YEAROLD SAND WROTE AN APPRECIATION OF HIS CARTHAGINIAN NOVEL SALAMMBO THAT FLATTERED FLAUBERT 17 YEARS HER JUNIOR THIS LITERARY ODD COUPLE CARRIED ON A WARM AND AFFECTIONATE CORRESPONDENCE UNTIL HER DEATH IN 1876 WHAT KEPT THE RELATIONSHIP GOING WAS SUBSTANTIAL AGREEMENT MOST OF THE TIME ABOUT PEOPLE POLITICS AND RELIGION AND THESE SUBJECTS TOGETHER WITH WRITERS' SHOPTALK AND THEIR PLEAS TO EACH OTHER MOSTLY UNHEEDED TO COME VISIT DOMINATED THEIR CORRESPONDENCE ODDLY FLAUBERT SEEMS TO HAVE NEEDED HER AS A SOUNDING BOARD FOR THE OPINIONS HE SO RIGIDLY INSISTED ON KEEPING OUT OF HIS NOVELS IN MY OLD AGE I INTEND TO WRITE CRITICISM HE TOLD HER IT WILL BE A RELIEF TO ME BECAUSE I OFTEN CHOKE WITH SUPPRESSED OPINIONS PRINCIPALLY THESE OPINIONS WERE ANTICLERICAL ANTICATHOLIC ANTIROYALIST ANTIBOURGEOIS AND ANTIDEMOCRATIC THEY WERE NOT SUPPRESSED IN HIS LETTERS TO SAND WHO WAS HERSELF A SENTIMENTAL SOCIALIST FRANCE IS SINKING SLOWLY LIKE A ROTTEN HULK HE WAILED ANY HOPE OF SALVAGE SEEMS CHIMERICAL EVEN TO HER MOST SOLID CITIZENS ONE HAS TO BE HERE IN PARIS TO HAVE AN IDEA OF THE UNIVERSAL DEGRADATION THE STUPIDITY THE SENILITY IN WHICH WE'RE FLOUNDERING THIS SORT OF OUTBURST BECAME MORE AND MORE FREQUENT AS HE GOT OLDER EVERYTHING LACERATES AND RAVAGES ME HE WROTE ESPECIALLY AFTER THE FRANCOPRUSSIAN WAR OF 1870 AND THE PARIS COMMUNE OF 1871 SAND LISTENED TO ALL THIS MISERY WITH A SYMPATHETIC EAR AND MADE GENTLE ATTEMPTS TO CHEER HIM UP SHE SELDOM RESPONDED DIRECTLY TO HIS VIOLENTLY EXPRESSED POLITICAL OPINIONS EVEN WHEN THEY CHALLENGED HER OWN WHEN FOR INSTANCE FLAUBERT ATTACKED SOCIALISM AS BEING FATALLY TAINTED WITH THE VESTIGES OF CHRISTIANITY AND THE GOSPEL DOCTRINE OF PEACE UNION AND LOVE WHILE IT NEGLECTED WHAT HE SAW AS THE PRIMARY POLITICAL VIRTUE JUSTICE SHE REPLIED GINGERLY BY ADMITTING THAT SHE HAD HERSELF ON OCCASION ENTERTAINED THE SAME ILLUSION OF A MORE PURIFIED POLITICAL SORT OF CHRISTIANITY LIKEWISE WHEN HE THUNDERED THAT FRANCE'S DEFEAT BY GERMANY WAS THE RESULT OF UNIVERSAL SUFFRAGE THE NEW GOD I CONSIDER AS STUPID AS THE OLD SHE CHOSE TO SAY NOTHING ON THE SUBJECT TO FLAUBERT HIMSELF BUT INSTEAD WROTE AND PUBLISHED A LETTER TO A FRIEND THE FRIEND WAS UNIDENTIFIED IN WHICH SHE CLAIMED THAT FRANCE HAS A WEAPON THE TEUTONS WILL NOT SNATCH FROM HER A SUPREME WEAPON IN BATTLES OF WILL UNIVERSAL SUFFRAGE IT WAS TYPICAL OF SAND TO AVOID DIRECT CONFRONTATION WITH HER DEAR OLD TROUBADOUR WITHOUT IN ANY WAY RELINQUISHING HER OWN VIEWS AT SUCH TIMES SHE SEEMS TO HAVE SLIPPED EASILY INTO THE TRADITIONAL FEMALE ROLE IN A MALEFEMALE RELATIONSHIP ALTHOUGH AT THIS STAGE OF THEIR LIVES BOTH OF THEM WERE PRETTY MUCH SEXLESS SHE ADMITTED THAT THERE'S STILL A WOMAN INSIDE HER BUT SHE MORE OFTEN USED HER AGE TO JUSTIFY AN EPICENE PREDISPOSITION ALREADY APPARENT IN HER CHOICE OF PSEUDONYM 40 YEARS BEFORE SHE WROTE NOW THAT I AM NO LONGER A WOMAN FOR INSTANCE OR LET ME KNOW THE TIMES WHEN YOU WON'T ADMIT THE FAIR SEX BUT WHEN YOU DON'T MIND RECEIVING TROUBADOURS IN THEIR SIXTIES THE TROUBADOUR WAS A PRIVATE JOKE BETWEEN THE TWO OF THEM AND WHENEVER SAND REFERRED TO HERSELF IN THIS PERSONA SHE USED THE THIRDPERSON MASCULINE PRONOUN YOUR OLD TROUBADOUR HAS BEEN LAID UP AGAIN HIS OLD GUITAR KEEPS THREATENING TO BREAK FLAUBERT FOR HIS PART FORGOT THAT SHE WAS A WOMAN WHEN HE WROTE DISPARAGINGLY OF A PAIR OF SKIRTS OR CALLED HER A FINE FELLOW ONCE WHEN HE HAD DECIDED THAT THE EMPRESS EUGENIE WAS PRINCIPALLY AT FAULT FOR THE EVENTS OF 18701871 HE EVEN WROTE I CURSE WOMEN THEY ARE THE CAUSE OF ALL OUR WOES AS SO OFTEN SHE STAYED CALM PROBABLY PUFFING ON HER LITTLE PIPE BEFORE RESPONDING TO THIS LATEST TIRADE WITH MORE SUNNY LETTERS FULL OF HOPEFULNESS AND OPTIMISM AND NEVER MIND HER PEN PAL'S OBVIOUS EXAMPLE TO THE CONTRARY UNFLAGGING BELIEF IN HUMAN PROGRESS MR BOWMAN IS THE AMERICAN EDITOR OF THE TIMES LITERARY SUPPLEMENT OF LONDON 9303260102 930326 SIEMENS UNIT PLANS TO REGROUP AGAIN INTO 10 NEW UNITS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL HANOVER GERMANY TRYING TO CUT ITS LOSSES THE COMPUTER SUBSIDIARY OF GERMANY'S SIEMENS AG IS REORGANIZING ITSELF YET AGAIN BUT ITS TOP MANAGERS SAY IT MAY STILL TAKE THREE YEARS MORE BEFORE THE UNIT STARTS TO BREAK EVEN DURING A NEWS CONFERENCE HERE WEDNESDAY AT THE CEBIT TRADE SHOW THE BIGGEST ANNUAL COMPUTER AND TELECOMMUNICATIONS EXHIBITION IN EUROPE EXECUTIVES OF SIEMENSNIXDORF INFORMATIONSSYSTEME AG SAID THAT STARTING NEXT THURSDAY THEY'RE CREATING 10 NEW OPERATING UNITS INSIDE THE 47200EMPLOYEE SIEMENS SUBSIDIARY IN AN EFFORT TO BOOST EFFICIENCY EACH NEW UNIT WILL HAVE ITS OWN SPECIALTY SUCH AS MAINFRAME COMPUTERS OR RETAILERS' CHECKOUT COMPUTERS AND BE RUN LIKE A SEPARATE BUSINESS WITH ITS OWN BUSINESS PLAN AND PROFITANDLOSS STATEMENTS THE REORGANIZATION AT THE BIGGEST EUROPEANOWNED COMPUTER MAKER FOLLOWS A GENERAL TREND IN THE GLOBAL COMPUTER INDUSTRY TO BREAK BIG COMPANIES INTO SMALLER UNITS ON THE ASYETUNPROVED THEORY THAT IT WILL CUT COSTS AND MAKE MANAGERS MORE ENTREPRENEURIAL SNI BEGAN TESTING THE BREAKUP STRATEGY IN OCTOBER WHEN IT SUBDIVIDED PART OF ITS OPERATIONS INTO THREE NEW UNITS THE 10 ADDITIONAL UNITS ANNOUNCED YESTERDAY EXTEND THE MANAGEMENT THEORY TO MUCH OF THE REST OF SNI'S OPERATIONS THE ANNOUNCEMENT MARKS A THREEYEAR STRETCH OF NEARCONSTANT REORGANIZATION AND TURMOIL FOLLOWING SIEMENS'S UNPROFITABLE ACQUISITION IN 1990 OF GERMAN COMPUTER RIVAL NIXDORF COMPUTER AG EVEN WITH THE CHANGES THOUGH COMPUTER EFFORTS APPEAR LIKELY TO CONTINUE WITH SEMICONDUCTOR PRODUCTION AS ONE OF THE TWO BIGGEST DRAINS ON SIEMENS'S OVERALL PROFITS IN THE YEAR ENDED SEPT 30 SNI LOSSES TOTALED ABOUT 500 MILLION MARKS 307 MILLION IN THE FIVE MONTHS SINCE THEN SNI'S SALES TOTALED 45 BILLION MARKS DOWN 6 FROM THE SAME PERIOD A YEAR EARLIER AND WHILE THE LOSSES HAVE DIMINISHED SO FAR THIS YEAR SAID HANSDIETER WIEDIG SNI PRESIDENT AND CHIEF EXECUTIVE IT WILL TAKE US THREE YEARS TO REACH BLACK FIGURES ASSUMING ECONOMIC CONDITIONS DON'T GET WORSE THAN EXPECTED IN AN INTERVIEW EARLIER THIS MONTH SIEMENS CHAIRMAN AND CHIEF EXECUTIVE HEINRICH VON PIERER HAD SAID HE WAS INTERESTED IN CONSIDERING A BROADER COOPERATION WHICH HE CALLED A STRATEGIC ALLIANCE WITH ONE OR MORE OTHER COMPUTER MAKERS BUT IN AN INTERVIEW YESTERDAY SNI DEPUTY CHAIRMAN HORST NASKO SAID HIS BOSS DIDN'T INTEND TO SUGGEST THAT ANY KIND OF MAJOR STRATEGY CHANGE WAS IN THE WORKS INSTEAD MR NASKO SAID THAT WHILE SNI WANTS MORE PARTNERSHIPS WITH OTHER COMPUTER MAKERS THEY ARE LIMITED IN SCOPE TO SELECTED PRODUCTS OR SERVICES AS EXAMPLES HE CITED AN EXISTING SIEMENS COLLABORATION WITH SILICON GRAPHICS INC IN WORKSTATIONS 9303260101 930326 BUFFETT SEEKS ACQUISITION AND THE BIGGER THE BETTER BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL OMAHA NEB WARREN BUFFETT IS IN A BUYING MOOD THE CHAIRMAN AND PART OWNER OF BERKSHIRE HATHAWAY INC SAYS IN HIS LATEST ANNUAL REPORT THAT HE'D LIKE TO MAKE A FRIENDLY ACQUISITION FOR 2 BILLION TO 3 BILLION PREFERABLY IN CASH THE LARGER THE COMPANY THE GREATER WILL BE OUR INTEREST HE WRITES SUCH A PURCHASE WOULD MAKE BERKSHIRE'S PRIOR ACQUISITIONS OF COMPANIES SUCH AS NEBRASKA FURNITURE MART AND SEE'S CANDIES LOOK TINY BY COMPARISON THE MOST RECENT WAS THE 82 MILLION PURCHASE LAST YEAR OF 82 OF CENTRAL STATES INDEMNITY A CREDIT INSURANCE COMPANY AS USUAL MR BUFFETT DOESN'T SAY WHAT INDUSTRY HE HAS IN MIND OR WHEN HE MIGHT MAKE SUCH A DEAL BUT HE WANTS CONSISTENT EARNINGS STRONG MANAGEMENT AND A BUSINESS THAT'S SIMPLE TO UNDERSTAND SUCH AN ACQUISITION WOULD ALSO BE LARGER THAN MR BUFFETT'S MORE FAMOUS PURCHASES OF STOCK IN COMPANIES SUCH AS COCACOLA CO GILLETTE CO AND CAPITAL CITIES/ABC INC FOR EXAMPLE BERKSHIRE PAID 102 BILLION FOR ITS COCACOLA SHARES THOUGH THEIR MARKET VALUE HAD GROWN TO 391 BILLION AT THE END OF 1992 MR BUFFETT ALSO SAYS HE'S INTERESTED IN NEGOTIATING TO BUY MORE SUCH BIG BLOCKS IN THE FUTURE 9303260100 930326 ECONOMY MR AND MRS AMERICA' RULE AUCTION BIDDING 2494 MILLION FOR RTC LOANS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL IN FURTHER EVIDENCE THAT BARGAIN HUNTERS ARE RETURNING TO THE REALESTATE MARKET THE RESOLUTION TRUST CORP AUCTIONED OFF 502 MILLION IN MOSTLY SMALL NONPERFORMING LOANS THIS WEEK FOR AN AVERAGE PRICE OF ABOUT 50 CENTS ON THE DOLLAR AT THE AUCTION TUESDAY AND WEDNESDAY IN KANSAS CITY MO THE LARGEST FOR NONPERFORMING LOANS EVER HELD IN THE US 163 INVESTORS BID ON PACKAGES OF LOANS AT PRICES THAT YIELDED THE THRIFTBAILOUT AGENCY A TOTAL OF 2494 MILLION ABOUT TWOTHIRDS OF THE PORTFOLIO WAS COLLATERALIZED BY MOSTLY RESIDENTIAL REAL ESTATE WHILE THE REMAINDER INCLUDED EVERYTHING FROM AUTOMOBILE LOANS TO THOSE FOR HOME IMPROVEMENT LOANS AGAINST A TEXAS MANSION A BULLSEMEN BANK AND A RABBIT FARM WERE AMONG THOSE ON THE BLOCK ALTHOUGH LOANS WERE SCATTERED THROUGHOUT THE COUNTRY THE PREPONDERANCE WAS CONCENTRATED IN RECESSIONSTRICKEN CALIFORNIA WHILE LARGE INVESTMENT BANKS AND LENDERS PARTICIPATED RTC OFFICIALS SAID THE AUCTION WAS DOMINATED BY SMALL TO MEDIUMSIZED ENTREPRENEURS BECAUSE THE MAJORITY OF ASSETS WERE PRICED UNDER 250000 WITH A TOP RANGE OF 8 MILLION THIS WAS TRULY MR AND MRS AMERICA COMING IN THERE WITH A FEW HUNDRED THOUSAND DOLLARS SAID RON CLINE THE RTC'S NATIONAL SALES DIRECTOR STRONG BUYERINTEREST REFLECTS THE RETURN OF INVESTORS WHO SEEK BARGAIN PRICES AS LOAN VALUES APPEAR TO HAVE BOTTOMED OUT IN MOST PARTS OF THE COUNTRY PREVIOUS GOVERNMENT AUCTIONS OVER THE PAST YEAR HAVE YIELDED SIMILAR BUYER DEMAND AS HAVE AUCTIONS AND OTHER SALES OF REALESTATEBACKED LOANS BY A GROWING NUMBER OF BANKS AND FINANCIAL INSTITUTIONS FOR THE RTC AUCTIONS REPRESENT A PARTICULARLY SUCCESSFUL TOOL IN DISPOSING OF HARDTOSELL PROBLEM LOANS SINCE JUNE 1991 THE AGENCY HAS AUCTIONED APPROXIMATELY 16 BILLION IN NONPERFORMING LOANS MANY OF THE AUCTIONS HAVE BEEN HELD ON THE REGIONAL LEVEL IN LOS ANGELES LAST SEPTEMBER THE AGENCY HELD ITS FIRST NATIONWIDE AUCTION OF LOANS IN A SUCCESSFUL EFFORT TO SOLICIT BROADER INVESTOR INTEREST MOST OF THE AUCTIONS HAVE YIELDED ABOUT 50 CENTS ON THE DOLLAR RTC OFFICIALS SAID RTC OFFICIALS PREVIOUSLY SOLD LOANS PIECEMEAL THROUGH THEIR VARIOUS SALES OFFICES AROUND THE COUNTRY THAT SLOW AND ARDUOUS TECHNIQUE HOWEVER KEPT THE AGENCY WEIGHTED DOWN WITH THE COSTS OF MANAGING ASSETS THAT IN MANY CASES HAD SLIPPED INTO FORECLOSURE OR WERE BEHIND ON PAYMENTS THE ABILITY TO BULK A HIGH NUMBER OF ASSETS IS VERY APPEALING BECAUSE IT SAVES ON MARKETING COSTS AND SPEEDS UP THE PROCESS SAID R STUART GROSS A PARTNER IN THE REAL ESTATE ADVISORY SERVICES OF ARTHUR ANDERSON & CO THE CHICAGO ACCOUNTING AND CONSULTING FIRM MR GROSS SAID THE VAST MAJORITY OF INVESTORS FOR THE KIND OF SMALLER LOANS SOLD IN KANSAS CITY INTEND TO HOLD ONTO THE ASSET JUST LONG ENOUGH TO FLIP IT FOR A PROFIT TO DO THIS HE SAID THEY EITHER RENEGOTIATE THE LOAN WITH THE BORROWER FOR EARLY PAYMENT HIGHER THAN THEIR PURCHASE PRICE OR PURSUE FORECLOSURE AND SELL THE COLLATERAL HOPEFULLY FOR MORE THAN THEY PAID BUYERS TYPICALLY HOPE FOR A RETURN ON INVESTMENT OF ABOUT 30 TO JUSTIFY THEIR RISK ALTHOUGH ANALYSTS SAY THESE YIELDS ARE DIMINISHING AMID RESURGING BUYER DEMAND IN KANSAS CITY RTC OFFICIALS SAID BIDDERS CROWDED INTO THE WESTIN CROWN CENTER FOR THIS WEEK'S AUCTION OFFERING AS LITTLE AS A FEW CENTS ON THE DOLLAR FOR THE MOST DISTRESSED LOANS TO AS MUCH AS 90 CENTS ON THE DOLLAR FOR THE MOST PRIZED ONES HOWARD CARNES SENIOR CONSULTANT FOR THE ATLANTA AUCTIONEER HUDSON & MARSHALL SAID BIDDING WAS SO COMPETITIVE IN SOME CASES THAT AS MANY AS 10 BIDS WERE SUBMITTED BEFORE A LOAN SOLD EACH BIDDER HAD TO DEPOSIT 100000 BEFOREHAND 9303260099 930326 WHO'S NEWS IACOCCA'S PAY FOR 1992 ROSE TO 11 MILLION BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH FORMER CHRYSLER CORP CHAIRMAN LEE A IACOCCA RECEIVED 11 MILLION IN SALARY AND STOCK AWARDS LAST YEAR MORE THAN TRIPLE HIS 1991 COMPENSATION WHAT'S MORE THE AUTO MAKER GAVE MR IACOCCA STOCK OPTIONS AND APPRECIATION RIGHTS EXERCISABLE THIS YEAR THAT COULD YIELD HIM ANOTHER 13 MILLION CHRYSLER SAYS BUT BECAUSE OF CHRYSLER'S SOARING STOCK PRICE THE OPTIONS AND APPRECIATION RIGHTS COULD EASILY BE VALUED AT 17 MILLION IN ALL GIVING MR IACOCCA AS MUCH AS 28 MILLION FOR HIS SERVICE AT CHRYSLER IN 1992 MR IACOCCA EARNED NEARLY 3 MILLION IN 1991 IN ITS PRELIMINARY PROXY STATEMENT RELEASED YESTERDAY CHRYSLER DISCLOSED THAT IT PAID CHAIRMAN ROBERT J EATON 19 MILLION IN SALARY AND STOCK AWARDS MR EATON SUCCEEDED MR IACOCCA AS CHAIRMAN IN JANUARY CHRYSLER ALSO AWARDED MR EATON OPTIONS ON 550000 SHARES VALUED AT BETWEEN 5 MILLION AND 185 MILLION SAYS CHRYSLER BASING ITS ASSESSMENTS ON DIFFERENT PRICING MODELS MANDATED BY SECURITIES AND EXCHANGE COMISSION REQUIREMENTS CHRYSLER PRESIDENT ROBERT A LUTZ TOOK HOME 18 MILLION LAST YEAR AND WAS AWARDED OPTIONS ON 88733 SHARES VALUED AT BETWEEN ROUGHLY 1 MILLION AND 2 MILLION CHRYSLER SAYS MR IACOCCA'S 11 MILLION COMPENSATION PACKAGE INCLUDES 26 MILLION IN SALARY BONUSES AND INCENTIVES AND STOCK VALUED AT 84 MILLION BUT BECAUSE CHRYSLER SHARE PRICES HAVE SHOT UP THE SEC PRICING MODELS MAY UNDERSTATE THE VALUE OF MR IACOCCA'S OPTIONS AND APPRECIATION RIGHTS IN A 1990 AGREEMENT WITH CHRYSLER'S BOARD MR IACCOCA WAS AWARDED THE APPRECIATION ON THE VALUE OF 750000 SHARES ABOVE 1550 A 1990 MARKET PRICE SINCE THE STOCK IS NOW TRADING AT OVER 38 THOSE RIGHTS ALONE WOULD BRING MORE THAN 16 MILLION AT CURRENT PRICES IN ADDITION MR IACOCCA LAST YEAR RECEIVED OPTIONS TO PURCHASE 130000 SHARES CHRYSLER SAYS THOSE OPTIONS ARE VALUED AT ABOUT 1 MILLION NOW IN JUSTIFYING MR IACOCCA'S COMPENSATION CHRYSLER'S PROXY STATEMENT GIVES A QUICK OVERVIEW OF HIS ACHIEVEMENTS AT CHRYSLER INCLUDING A 165 INCREASE IN CHRYSLER'S STOCK PRICE CHRYSLER SAYS THAT IN 1990 FOLLOWING THE DEPARTURE OF SEVERAL EXECUTIVES THE BOARD DETERMINED THAT IT WAS ESSENTIAL TO MAINTAIN THE CONTINUITY OF THE CORPORATION'S SENIOR MANAGEMENT TEAM AND NEGOTIATED AN AGREEMENT WITH MR IACOCCA TO STAY AT CHRYSLER BEYOND HIS 65TH BIRTHDAY IN THE 1990 AGREEMENT THE BOARD KEPT MR IACOCCA'S BASE SALARY LOWER THAN THAT OF HIS PEERS AT OTHER AUTO MAKERS THE PROXY STATEMENT SAYS BUT DEVELOPED A COMPENSATION SYSTEM BASED ON SHARE PRICE SO THAT MR IACOCCA'S PAY WOULD REFLECT THE LONGTERM SUCCESS OF THE CORPORATION AND REFLECT THE VALUE GAINED BY STOCKHOLDERS THE PROXY STATEMENT SAYS HOWEVER THE AMOUNT OF MONEY AWARDED TO MR IACOCCA IS SURE TO BE CONTROVERSIAL THE PROXY STATEMENT INCLUDES TWO INDEPENDENT SHAREHOLDER PROPOSALS BOTH CRITICAL OF LARGESSE FOR EXECUTIVES ONE PROPOSAL FROM IMMACULATE HEART MISSION INC OF ARLINGTON VA ASKS THE BOARD TO STUDY WAYS TO LINK EXECUTIVE COMPENSATION MORE CLOSELY TO FINANCIAL PERFORMANCE AND TO COMPARE THE PAY OF TOP EXECUTIVES WITH THE LOWEST WAGE EARNERS 9303260098 930326 SUEZ MAY PUT BELGIAN STAKES ON THE BLOCK REFOCUSING BY FRENCH FIRM COULD RESULT IN SALE OF MANY SGB INTERESTS BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS BELGIUM OR AT LEAST LARGE CHUNKS OF IT APPEARS TO BE ONCE AGAIN UP FOR GRABS FIVE YEARS AGO THE FRENCH FINANCIAL EMPIRE CIE DE SUEZ WON A BRUISING AND COSTLY TAKEOVER BATTLE AGAINST ITALIAN FINANCIER CARLO DE BENEDETTI FOR BELGIUM'S BIGGEST HOLDING COMPANY SOCIETE GENERALE DE BELGIQUE NOW SUEZ SAYS IT PLANS TO DIVEST ITSELF OF ITS INDUSTRIAL INTERESTS MOST OF WHICH ARE IN BELGIUM SUEZ CHAIRMAN GERARD WORMS HAS VOWED TO REFOCUS HIS TROUBLED COMPANY ON FINANCIAL SERVICES WITHIN THE NEXT FIVE YEARS MR WORMS HASN'T ANNOUNCED ANY DETAILED PLANS BUT BROKERS BELIEVE THAT ON THE BLOCK ARE SGB'S STAKES IN UNION MINIERE SA ONE OF EUROPE'S LEADING REFINERS OF ZINC COPPER AND OTHER NONFERROUS METALS RECTICEL SA A WORLD LEADER IN POLYURETHANE FOAMS PETROFINA SA AN OIL COMPANY AND BELGIUM'S BIGGEST INDUSTRIAL CONCERN AND ARBED SA ONE OF EUROPE'S LARGEST STEELMAKERS MANY ALSO EXPECT SGB TO SELL ITS INTERESTS IN CIMENTERIES CBR SA A CEMENT MAKER ACTIVE IN EUROPE AND NORTH AMERICA AND IN ACCOR SA THE FRENCH HOTEL AND TOURISM COMPANY BY IGNITING A VAST MONOPOLYSTYLE GAME OF SWITCHING CORPORATE OWNERSHIPS IN BELGIUM ANALYSTS SAY SGB AND ITS MYRIAD HOLDINGS COULD PROVIDE SOME PROMISING IF RATHER SPECULATIVE INVESTMENT OPPORTUNITIES ON THE BRUSSELS STOCK MARKET BUT THAT'S ALL EASIER SAID THAN DONE MR WORMS'S ABILITY TO DISPOSE OF SUEZ'S BELGIAN INDUSTRIAL ASSETS IS LIMITED BY STRATEGIC LEGAL AND POLITICAL FACTORS AND SUEZ IN RECENT DAYS HAS SOUGHT TO QUIET MARKET SPECULATION BY SAYING IT WON'T RUSH AHEAD WITH ANY MASSIVE ACROSSTHEBOARD DIVESTMENTS MANY OF SGB'S INTERESTS ARE LOCKED IN A COMPLEX WEB OF CROSSSHAREHOLDINGS MINORITY CONTROLS AND CAREFULLY BALANCED ALLIANCES WITH OTHER COMPANIES FOR EXAMPLE BECAUSE OF A SHAREHOLDER PACT BETWEEN SGB AND RIVAL BELGIAN HOLDING COMPANY GROUPE BRUXELLES LAMBERT SGB CANNOT SELL ITS INDIRECT STAKE OF 11 IN PETROFINA WITHOUT THE APPROVAL OF GBL AND OF GBL CHAIRMAN ALBERT FRERE PETROFINA'S CONTROLLING SHAREHOLDER IN RECENT DAYS TAKEOVER SPECULATION HAS NEVERTHELESS BUOYED PETROFINA'S STOCK PRICE ACCORDING TO MARKET RUMORS THE FRENCH OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE HAS BUILT UP A STAKE OF AS MUCH AS 15 IN PETROFINA STATEOWNED ELF HAS DENIED THE RUMORS SAYING IT HAS NO DESIGN TO ACQUIRE THE BELGIAN FIRM LAST WEEK ELF PUZZLED BELGIUM'S FINANCIAL COMMUNITY BY DISCLOSING IT HAS A PETROFINA STAKE OF JUST UNDER 5 THE MINIMUM DISCLOSURE THRESHOLD UNDER BELGIAN LAW BUT BRUSSELS ANALYSTS AND BUSINESSMEN SAY THEY BELIEVE OTHER FRENCH CONCERNS HAVE RECENTLY BOUGHT PETROFINA STOCK IN CONCERT WITH ELF THAT THEY NOTE MAY PROMPT A COUNTERMOVE BY MR FRERE'S GBL TO BUY THE 11 PETROFINA STAKE CONTROLLED BY SGB AND SUEZ THOUGH SUEZ'S PLANNED REFOCUSING IS CONTINGENT UPON SUCH COMPLICATED STRATEGIC MANEUVERS ANALYSTS SAY A MORE BUOYANT STOCK MARKET FUELED BY FALLING INTEREST RATES COULD SOON MAKE IT FAR EASIER FOR MR WORMS TO CARRY OUT HIS PLANS AND MR WORMS'S OWN FIVEYEAR DEADLINE FOR COMPLETING SUEZ'S RESTRUCTURING PROVIDES AMPLE TIME TO FIND BUYERS MR WORMS'S INTENTIONS HAVE AROUSED CONCERN AT BELGIUM'S FINANCIAL WATCHDOG THE BANKING AND FINANCE COMMISSION WHICH WORRIES THAT MAJOR PARTS OF BELGIUM'S INDUSTRIAL LANDSCAPE MAY ONCE AGAIN BE SUBJECT TO BITTER TAKEOVER BATTLES THE SUEZ CHAIRMAN IS UNDER CONSIDERABLE SHAREHOLDER PRESSURE TO BOOST SUEZ'S PROFITABILITY AND LESSEN THE COMPANY'S DEPENDENCE ON CYCLICAL BUSINESSES SUCH AS STEEL OR PETROCHEMICALS EARLIER THIS MONTH MR WORMS SAID SUEZ WOULD POST A 1992 LOSS OF AS MUCH AS 19 BILLION FRENCH FRANCS 341 MILLION FOR THE TIME BEING HOWEVER SGB OFFICIALS WILL ONLY CONFIRM THAT THE COMPANY IS IN TALKS WITH AN UNIDENTIFIED BUYER TO SELL A STAKE OF ABOUT 30 IN UNION MINIERE FOR 14 BILLION TO 17 BILLION BELGIAN FRANCS 416 MILLION TO 505 MILLION THE SALE OF A MINORITY STAKE IN THE METALS COMPANY WHICH IS EXPECTED WITHIN THE NEXT FEW MONTHS WOULD REDUCE SGB'S 82 OWNERSHIP TO SLIGHTLY MORE THAN 50 MANY ANALYSTS HOWEVER BELIEVE THAT MAY BE NOTHING MORE THAN A FIRST STEP ONCE BUSINESS CONDITIONS IN THE METALS INDUSTRY HAVE IMPROVED THEY EXPECT SGB TO SELL THE REST OF UNION MINIERE POSSIBLY AT A BETTER PRICE IN LINE WITH SUEZ'S NEW STRATEGY TO FOCUS ON FINANCIAL SERVICES SGB OFFICIALS ALSO CONFIRM THAT THE BELGIAN HOLDING COMPANY IS SEEKING TO BOOST ITS 21 STAKE IN GENERALE BANK BELGIUM'S LARGEST BANK AND ONE OF THE COUNTRY'S MOST PROFITABLE FINANCIAL INSTITUTIONS UNDER A MUCHTALKED ABOUT SCENARIO SGB AFFILIATE GROUPE AG WOULD SELL ITS 15 STAKE IN THE BANK TO SGB BOOSTING THE HOLDING COMPANY'S OWNERSHIP TO 36 THINGS MIGHT BE LESS EASY FOR SGB'S OTHER HOLDINGS HOWEVER RECTICEL THE POLYURETHANE FOAM MAKER IS IN THE MIDST OF AN AMBITIOUS RESTRUCTURING PROGRAM BECAUSE THE PROGRAM HASN'T YET PRODUCED THE EXPECTED FINANCIAL RESULTS ANALYSTS AND OFFICIALS CLOSE TO SGB SAY IT'S TOO EARLY FOR SGB TO OBTAIN A SATISFACTORY PRICE FOR ITS 74 RECTICEL STAKE AS FOR SGB'S 26 STAKE IN THE STEELMAKER ARBED ANALYSTS SAY IT'LL BE MUCH TOUGHER TO FIND A BUYER EUROPE'S STEEL INDUSTRY IS PLUNGED INTO A SEVERE CRISIS DUE TO OVERCAPACITY AND WEAK PRICES CIMENTERIES CBR ON THE OTHER HAND IS REGARDED AS AN EASY SELL BUT THE CEMENT MAKER IS HIGHLY PROFITABLE AND SGB HASN'T YET MADE UP ITS MIND WHETHER TO SELL THE 43 STAKE OFFICIALS CLOSE TO THE COMPANY SAY THE SAME IS TRUE FOR ACCOR WHERE SGB IS THE BIGGEST HOLDER WITH A 12 STAKE 9303260097 930326 SENATE BACKS CLINTON 5445 ON BUDGET PLAN BUT DEMOCRATS ANTICIPATE TOUGH FIGHT INVOLVING TAX SPENDING PROVISOS BY JOHN HARWOOD AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS MAINTAINED ENOUGH DISCIPLINE TO MOVE PRESIDENT CLINTON'S BUDGET THROUGH THE SENATE BUT BRACED FOR TOUGHER FIGHTS OVER SPECIFIC TAX AND SPENDING PROVISIONS TO CARRY OUT THE PROMISE OF DEFICIT REDUCTION ON A PARTISAN 5445 VOTE DEMOCRATS APPROVED THE NEW PRESIDENT'S BROAD PROPOSAL TO SHIFT THE NATION'S ECONOMIC PRIORITIES THE SENATE VERSION WOULD USE TAX INCREASES AND SPENDING CUTS TO SHRINK THE BUDGET DEFICIT BY 502 BILLION OVER FIVE YEARS WHILE ALSO BOOSTING FEDERAL INVESTMENT SPENDING ON PROGRAMS INTENDED TO IMPROVE LONGTERM ECONOMIC GROWTH THE AMERICAN PEOPLE WANT CHANGE AND THIS SENATE HAS TAKEN A STEP TOWARD GIVING IT TO THEM SAID MAJORITY LEADER GEORGE MITCHELL OF MAINE MR CLINTON WHO WON A SIMILAR VICTORY IN THE HOUSE LAST WEEK HAILED THE VOTE AS EVIDENCE THAT FINALLY WE'VE DONE SOMETHING TO BREAK THE GRIDLOCK THAT HAS STIFLED ECONOMIC POLICY IN RECENT YEARS BUT THE WHITE HOUSE AND DEMOCRATIC LEADERS QUICKLY FACED AN INTRAPARTY CHALLENGE AS THE SENATE TURNED TO THE ACCOMPANYING 163 BILLIONPLUS ECONOMIC STIMULUS PACKAGE CONSERVATIVES WANT TO WITHHOLD SOME OF THE FUNDS UNTIL CONGRESS HAS ENACTED THE PROMISED DEFICITREDUCTION MEASURES IN YESTERDAY'S BUDGET BUT THE WHITE HOUSE IS RESISTING WITH SUPPORT FROM SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD WHO QUICKLY MOVED TO GAIN ADVANTAGE IN A DISPLAY OF PARLIAMENTARY PROWESS THE WEST VIRGINIA DEMOCRAT'S POWER COULD YET CARRY THE DAY FOR THE PRESIDENT BUT THE PARTY CONSERVATIVES MATCHED AGAINST HIM REPRESENT CRUCIAL SWING VOTES ON THE SENATE FINANCE COMMITTEE WHICH WILL CARRY THE HEAVIEST BURDEN IN IMPLEMENTING THE BUDGET MORE BROADLY THE SPLIT UNDERSCORES THE FACT THAT SO MUCH REMAINS AT STAKE IN THE COMING MONTHS AS THE INSTRUCTIONS IN THE BUDGET ARE TRANSLATED INTO TAX AND SPENDING LEGISLATION WE START SHOOTING WITH REAL BULLETS FROM NOW ON WARNED SENATE MINORITY LEADER ROBERT DOLE INVOKING ROSS PEROT'S ATTACKS ON FEDERAL SPENDING THE KANSAS REPUBLICAN BITINGLY PREDICTED THAT AMERICANS WOULD TURN AGAINST MR CLINTON'S PROGRAM AS THEY LEARNED MORE ABOUT ITS RELIANCE ON TAX INCREASES INCLUDING A BROAD ENERGY TAX AND HIGHER INCOME TAXES ON THE CORPORATIONS HIGHINCOME PEOPLE AND THE MOST AFFLUENT SOCIAL SECURITY RECIPIENTS SENATE LEADERS APPOINTED NEGOTIATORS TO RESOLVE DIFFERENCES WITH THE 510 BILLION DEFICITREDUCTION PLAN THAT PASSED THE HOUSE CONGRESSIONAL LEADERS ARE PRESSING TO COMPLETE ACTION ON THE BUDGET THE STIMULUS PACKAGE AND AN EXTENSION OF THE FEDERAL DEBT LIMIT BEFORE LEAVING FOR THEIR EASTER RECESS NEXT WEEK AMONG OTHER CONFLICTS THE HOUSE WOULD REDUCE DEFENSE SPENDING BY ABOUT 870 MILLION MORE THAN MR CLINTON IN FISCAL 1994 WHILE THE SENATE HEEDING A WARNING FROM ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN D GA HELD TO THE PRESIDENT'S PROPOSED DEFENSE CUTS OVERALL THE HOUSE PROPOSES 21 BILLION MORE IN SPENDING CUTS OVER FIVE YEARS WHILE THE SENATE PROPOSES ABOUT 22 BILLION MORE IN TAX INCREASES THAN THE HOUSE SENATE BUDGET CHAIRMAN JAMES SASSER SAID THE TWO CHAMBERS WOULD MOST LIKELY SPLIT THE DIFFERENCE ON MOST ISSUES THE TENNESSEE DEMOCRAT ALSO PREDICTED THAT THE POLITICALLY CONTENTIOUS SOCIAL SECURITY TAX INCREASE WOULD SURVIVE AS MR CLINTON PROPOSED IT THE PROVISION WOULD RAISE TO 85 FROM 50 THE AMOUNT OF SOCIAL SECURITY BENEFITS SUBJECT TO TAXATION FOR RECIPIENTS WITH INCOMES OF MORE THAN 25000 AND COUPLES WITH INCOMES OVER 32000 DESPITE THE INITIAL VICTORIES THE TENUOUSNESS OF MR CLINTON'S POSITION WAS UNDERSCORED BY THE FACT THE FIRST DEMOCRATIC SENATOR TO FACE THE VOTERS ROBERT KRUEGER OF TEXAS WHO IS RUNNING IN A MAY 1 SPECIAL ELECTION VOTED AGAINST THE PRESIDENT'S BUDGET PACKAGE THE ONLY OTHER DEMOCRAT TO BREAK RANKS WAS ALABAMA SEN RICHARD SHELBY A CONSERVATIVE WHO HAS SEEMED AT WAR WITH THE WHITE HOUSE IN RECENT WEEKS NO REPUBLICAN SENATOR BACKED THE CLINTON PROGRAM AS APPROVED BY THE HOUSE LAST WEEK THE PENDING STIMULUS BILL WOULD PROVIDE AN ESTIMATED 163 BILLION IN NEW APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPT 30 AND RELEASE AN ADDITIONAL 32 BILLION FROM FEDERAL TRUST FUNDS FOR TRANSPORTATION PROJECTS THIS MIX OF PUBLIC WORKS AND LONGERRANGE INVESTMENTS IN SCIENCE AND EDUCATION CARRIES THE IMPRINT OF THE NEW PRESIDENT BUT IS ALSO A VISION WELLSUITED TO THE 75YEAROLD MR BYRD WHO HAS MADE IT A SHOWCASE FOR HIS OWN TALENTS WITHIN HIS COMMITTEE HE STRUCTURED THE BILL TO GAIN ADVANTAGE ON THE FLOOR AND YESTERDAY ADDED A PROTECTIVE STRUCTURE OF AMENDMENTS INTENDED TO MAXIMIZE HIS OPTIONS AND SHIELD THE PACKAGE FROM MAJOR CHANGES I'M DEFENDING THE PRESIDENT'S PROGRAM MR BYRD SAID TAUNTING THE OPPONENTS WITH THE DUSTY PARLIAMENTARY RULES HE KNOWS SO WELL BUT FRUSTRATED CONSERVATIVES WHO BEGAN A PROLONGED DEBATE TO WIN TIME FOR NEGOTIATIONS WARNED THE WHITE HOUSE THAT IT WOULD BE SHORTSIGHTED TO HUMILIATE THEM NOW OUR TASK HERE IS NOT TO WIN THE SKIRMISH BUT LOSE THE WAR SAID SEN DAVID BOREN D OKLA THOUGH CONSERVATIVE DEMOCRATS SEEM CONTENT TO DELAY THE RELEASE OF THE FUNDS UNTIL LATER THIS SUMMER THE LARGER ISSUE FOR REPUBLICANS IS THAT THE ENTIRE PACKAGE IS COVERED BY AN EMERGENCY DECLARATION EXEMPTING IT FROM STATUTORY SPENDING CAPS ADOPTED AFTER THE 1990 BUDGET AGREEMENT AS THE ECONOMY HAS IMPROVED THE EMERGENCY JUSTIFICATION HAS BECOME MORE DUBIOUS AND IN MANY CASES APPEARS TO BE NOTHING MORE THAN A DEVICE TO BUILD IN EXTRA SPENDING TOWARD THE PRESIDENT'S LONGTERM GOALS THIS PATTERN HAS BECOME CLEARER AS THE ADMINISTRATION SPELLS OUT THE DETAILS OF ITS APPROPRIATIONS REQUESTS FOR THE FISCAL YEAR BEGINNING OCT 1 THOUGH FINAL DOCUMENTS WON'T BE RELEASED UNTIL NEXT MONTH SOME MAJOR DEPARTMENTS AND AGENCIES HAVE OUTLINED THEIR PLANS IN TESTIMONY THIS WEEK FOR EXAMPLE THE PENDING STIMULUS BILL WOULD ADD 2066 MILLION TO THIS YEAR'S BUDGET FOR THE NATIONAL SCIENCE FOUNDATION INCLUDING ADDITIONAL FUNDS FOR HIGHPERFORMANCE COMPUTERS NSF FUNDING WOULD GROW ANOTHER 8 TO 318 BILLION NEXT FISCAL YEAR UNDER THE PRESIDENT'S REQUEST WHICH ALLOCATES A TOTAL OF 3057 MILLION FOR THE COMPUTER INITIATIVE TOTAL NSF RESEARCH FUNDING WOULD BE ABOUT 22 BILLION AND JUST AS THE STIMULUS BILL FOCUSES ON URBAN INITIATIVES THE NSF BUDGET INCLUDES AN ESTIMATED 19 MILLION FOR A MATH AND SCIENCE EDUCATION INITIATIVE AIMED AT URBAN SCHOOLS WITH LARGE NUMBERS OF POOR CHILDREN SIMILARLY THE COMMERCE DEPARTMENT'S BUDGET WOULD TAKE ADVANTAGE OF THE FUNDS TO BE APPROPRIATED NOW IN THE NAME OF JOB CREATION A TOTAL OF 35 BILLION WILL BE REQUESTED FOR THE DEPARTMENT FOR FISCAL 1994 A NEARLY 15 INCREASE FROM THE CURRENT YEAR AT THE NATIONAL INSTITUTES OF STANDARDS AND TECHNOLOGY THE ADVANCEDTECHNOLOGY PROGRAM WOULD RECEIVE ANOTHER 132 MILLION AFTER BENEFITING FROM THE STIMULUS BILL THE DEPARTMENT IS ASKING FOR A 54 MILLION INCREASE FOR THE NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION WHOSE FUNDING IS QUADRUPLED FOR THIS YEAR UNDER THE PENDING STIMULUS BILL AND IS A TOP PRIORITY OF VICE PRESIDENT ALBERT GORE WITHIN THE VETERANS AFFAIRS DEPARTMENT THE ADMINISTRATION IS ASKING FOR 358 BILLION NEXT YEAR INCLUDING 156 BILLION FOR MEDICAL CARE APPROPRIATIONS FOR MEDICAL CARE ARE 146 BILLION FOR THE CURRENT FISCAL YEAR BUT THE EMERGENCY STIMULUS BILL WOULD ALREADY INCREASE THIS BY 2029 MILLION 9303260096 930326 LEISURE & ARTS THE FINE ART OF FRENCH SATIRE BY A CRAIG COPETAS PARIS WHILE MOST OF THE FRENCH MEDIA PREPARED FOR THIS SUNDAY'S FINAL ROUND OF NATIONAL ELECTIONS WITH A STEADY FLOW OF ANALYSIS OF HOW PRESIDENT FRANCOIS MITTERRAND MIGHT FORGE A COHABITATION GOVERNMENT WITH THE CONSERVATIVE MAJORITY THE COUNTRY'S MOST POPULAR ANCHORMAN PATRICK POIVRE D'AVOR WAS INSTEAD BROADCASTING A LIVE SATELLITE TRANSMISSION OF GENDARMES AS THEY ATTEMPTED TO BANISH MR MITTERRAND FROM AN EXCLUSIVE GOLF COURSE HERE YOU'RE NOT PART OF THE CLUB ANYMORE THE CAMERA CAUGHT AN OFFICER TELLING PRESIDENT MITTERRAND WHO WAS WEARING PLUS FOURS AND ENDEAVORING TO BEAN THE GENDARME OVER THE HEAD WITH HIS PUTTER IF YOU DON'T MIND SHOUTED MR MITTERRAND WHOSE SECOND SEVENYEAR TERM ENDS IN MAY 1995 AND WHOSE PRESIDENCY IS NOW HANDICAPPED WITH A SCANT 176 OF THE VOTE FOR HIS SOCIALIST PARTY IN LAST SUNDAY'S FIRST ROUND OF ELECTIONS I'M A PERSONAL FRIEND OF ANDRE ROUSSELET THE CHAIRMAN OF THIS TELEVISION STATION WELL EXCUSE ME THE GENDARME SNORTED LEAVING MR MITTERRAND TO PUTT OUT AND MUMBLE ABOUT THE CERTAINTY THAT HE MUST SOON NAME A CONSERVATIVE PRIME MINISTER BACK IN THE STUDIO MR D'AVOR KNOWN TO ALL FRANCE BY THE INITIALS PPD BILLED HIS EXCLUSIVE INTERVIEW WITH THE QUARRELSOME ENVIRONMENTALISTCOALITION LEADERS BRICE LALONDE AND ANTONIE WAECHTER AS A DISCUSSION BETWEEN THE GREEN DWARFS BRANDISHING A SOLARPOWERED MEGAPHONE MR WAECHTER THE LEADER OF THE GREEN PARTY SAID THAT MR LALONDE THE LEADER OF THE GENERATION ECOLOGIE PARTY WAS RESPONSIBLE FOR THE POOR ELECTION PERFORMANCE OF THE ALLIANCE IN PART BECAUSE HE REFUSED TO USE AN ENVIRONMENTALLY FRIENDLY AMPLIFICATION SYSTEM DURING THE CAMPAIGN A FIST FIGHT BROKE OUT SHORTLY THEREAFTER FLAMES AND SMOKE EXPLODED FROM THE HEAD OF FORMER PRIME MINISTER JACQUES CHIRAC THE FRONTRUNNER TO BECOME THE CONSERVATIVE CANDIDATE FOR THE 1995 PRESIDENTIAL ELECTIONS THEN AS A TWOFOOT SERPENT'S TONGUE UNFURLED FROM MR CHIRAC'S MOUTH A CANAL PLUS TELEVISION EXECUTIVE BIT HER LIP AND WONDERED ALOUD WHAT THE CREATORS OF THESE POPULAR PUPPETS STARS OF A TALKSHOW SEGMENT CALLED LES GUIGNOLS HAVE IN STORE FOR THE FRENCH ESTABLISHMENT WHEN THE CONSERVATIVE COALITION HEADED BY MR CHIRAC AND FORMER PRESIDENT VALERY GISCARD D'ESTAING ASSUMES CONTROL OF THE NATIONAL ASSEMBLY NEXT WEEK AND FRANCE ENDS MORE THAN A DECADE OF SOCIALIST GOVERNMENT WE'RE NOT PLANNING ANYTHING SPECIAL FOR THE END OF SOCIALISM SOOTHED BRUNO GACCIO A RETIRED GOATCHEESE MAKER AND ONE OF THE THREE WRITERS WHO HAVE HELPED BOOST THE RATINGS OF THE WEEKDAY CANAL PLUS CABLE TALK SHOW NULLE PART AILLEURS NOWHERE ELSE BY TURNING ITS LES GUIGNOLS SEGMENT INTO WHAT MANY HERE DESCRIBE AS THE MOST POLITICALLY INFLUENTIAL FIVE MINUTES ON FRENCH TV I DON'T KNOW HOW SIGNIFICANT LES GUIGNOLS' IS SAID WRITER BENOIT DELEPINE BUT WE'RE PACKING OUR LUGGAGE IN CASE WE MUST LEAVE THE COUNTRY MONDAY NIGHT NOT LIKELY MOST OF THE 104 POLITICIANS AND PUBLIC FIGURES SCATHINGLY SPOOFED BY THE 45PERSON PUPPET TEAM IN FACT BELIEVE THAT BEING GUIGNOLED IS A CAREER ENHANCEMENT FRENCH PUNDITS SAY LES GUIGNOLS IS A HILARIOUS EVIL NECESSARY TO CARRY ON A TRADITION THAT BEGAN WHEN LAURENT MOURGUET BROUGHT THE FIRST GUIGNOL PUPPET ACROSS THE ALPS FROM ITALY IN 1795 TO FOUND THE GUIGNOL MARIONETTE THEATER IN LYON PERHAPS MORE IMPORTANT IN A NATION THAT SEES ITSELF UNDER ATTACK FROM ENGLISHLANGUAGE CNN BROADCASTS AND HOLLYWOOD SITCOMS LES GUIGNOLS HAS KEPT THE UNIQUE AND RIBALD ART OF FRENCH SATIRE ALIVE AND POPULAR TO ENSURE THAT LES GUIGNOLS IS SEEN BY AS MANY FRENCH MEN AND WOMEN AS POSSIBLE CANAL PLUS ELECTRONICALLY UNSCRAMBLES ITS PAY NETWORK ONE HOUR BEFORE THE 755 PM GUIGNOLS BROADCAST GIVING THE PUPPETS AN OPPORTUNITY TO REACH THE 15 MILLION FRENCH HOMES WITH TELEVISIONS TURNED ON AT THAT HOUR MORE THAN THREE MILLION OF THEM TUNE IN SOME 13 TO 16 OF THE MARKET A HUGE AUDIENCE FOR A EUROPEAN CABLE CHANNEL ONE OF THE MAIN TARGETS OF THIS WILDLY SUCCESSFUL BURLESQUE IS MR D'AVOR THE TF1 ANCHORMAN WHOSE VERY OWN GUIGNOL PUPPET COUNTERPART NOT ONLY MAKES HIM LOOK RIDICULOUS BUT ALSO COMPETES WITH THE REAL MR D'AVOR'S NEWSCAST THE GUIGNOLS PRODUCERS USE PPD'S HIGHLY RATED 8 PM SHOW AS THE FORMAT FOR THEIR PARODY LAUNCHING THEIR FINAL DART BY TIMING THEIR BROADCAST TO END SO THAT WHEN VIEWERS ZAP TO TF1 THEY ARE JUST IN TIME TO HEAR THE REAL PPD SAY THANK YOU FOR LETTING ME INTO YOUR HOME AND GOOD EVENING SOMETIMES IT'S HARD TO TELL WHICH IS THE REAL PPD THE PUPPETS BILL CLINTON AND SADDAM HUSSEIN ARE AMONG THE OTHER LUMINARIES PORTRAYED HAVE BECOME A GROWTH INDUSTRY IN FRANCE SPAWNING EVERYTHING FROM TSHIRTS AND COFFEE MUGS TO FAILED LAWSUITS LODGED BY THE NOVELIST FRANCOISE SAGAN AND THE RULING GRIMALDI FAMILY OF MONACO MR D'AVOR REFUSES TO COMMENT ON HIS GUIGNOL DOPPELGANGER PREFERRING TO STICK TO POLITICS THE SOCIALISTS AND THEIR LEADER FABIUS UPSET ME SAID MR D'AVOR ER I MEAN YVES LE COQ THE GUIGNOL PPD THEY ARE ALWAYS CUTTING DOWN CHIRAC AND THEY DESERVE TO LOSE MR COPETAS IS A PARISBASED WRITER 9303260094 930326 OLIN SELLS IC ASSEMBLY UNIT STAMFORD CONN OLIN CORP SAID IT SOLD THE ASSETS OF ITS MANTECA CALIF CONTRACT INTEGRATEDCIRCUIT ASSEMBLY OPERATION TO AN INVESTOR GROUP THE CHEMICAL DEFENSE AND AEROSPACE CONCERN DIDN'T DISCLOSE TERMS OF THE DEAL WITH THE GROUP WHICH IT SAID IS AFFILIATED WITH A LARGE SOUTHEAST ASIAN CONTRACT IC ASSEMBLER 9303260093 930326 WHITE HOUSE INITIATES WAY TO SOLVE WILDLIFE CONFLICTS WASHINGTON THE CLINTON ADMINISTRATION ADOPTED A NEW APPROACH TO PROTECTING THREATENED SPECIES THAT OFFICIALS HOPE WILL PREVENT BITTER PROTRACTED CONFLICTS LIKE THE ONE THAT ERUPTED OVER THE SPOTTED OWL AS EXPECTED INTERIOR SECRETARY BRUCE BABBITT LISTED THE CALIFORNIA GNATCATCHER A TINY SONGBIRD THAT LIVES IN THE ARID SAGE AND SCRUB ALONG THE SOUTHERN CALIFORNIA COASTLINE AS THREATENED UNDER THE ENDANGERED SPECIES ACT BUT MR BABBITT PROPOSED SUSPENDING THE FEDERAL RULES WHICH PROHIBIT FURTHER LAND DEVELOPMENT TO PROMOTE A REGIONAL CONSERVATION PLAN THAT WOULD PERMIT SIGNIFICANT DEVELOPMENT OF THE COASTLINE AS LONG AS THE BUILDERS PRESERVED ENOUGH GNATCATCHER HABITAT TO GUARANTEE THE SURVIVAL OF ALL SPECIES THAT DEPEND UPON THAT HABITAT ALTHOUGH STILL IN THE PLANNING STAGES THE CALIFORNIA PROGRAM IS BACKED BY BOTH ENVIRONMENTAL AND REALESTATE GROUPS AND IS EXPECTED TO PROTECT AN ADDITIONAL 40 TO 50 SPECIES THAT ARE CANDIDATES FOR EXTINCTION THE NEW APPROACH KNOWN AS ECOSYSTEMWIDE PLANNING IS EXPECTED TO PREEMPT THE BATTLES AND EVENTUAL LITIGATION THAT HAVE ARISEN IN THE PAST OVER SAVING INDIVIDUAL ENDANGERED SPECIES IF IT WORKS SAID JOHN SAWHILL NATIONAL DIRECTOR OF THE NATURE CONSERVANCY IT CAN SERVE AS A MODEL THAT GOES FAR BEYOND THE SINGLE SPECIES APPROACH 9303260092 930326 IBM WON'T GET TWO KEY AIDES OF GERSTNER'S RJR'S CURRENT CHIEF AGREES NOT TO TAKE RICCIARDI VON DER HEYDEN ALONG BY MICHAEL W MILLER AND GEORGE ANDERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LOUIS V GERSTNER JR WHO IS SLATED TO BE NAMED THE NEW CHIEF EXECUTIVE OFFICER OF INTERNATIONAL BUSINESS MACHINES CORP TODAY HAS CONVINCED HIS CURRENT BOSSES THAT HE WON'T SPIRIT AWAY TWO KEY AIDES WITH HIM MR GERSTNER THE CHAIRMAN AND CEO OF RJR NABISCO HOLDINGS CORP MADE THE ASSURANCE LATE TUESDAY IN FACETOFACE TALKS WITH PARTNERS OF KOHLBERG KRAVIS ROBERTS & CO WHICH CONTROLS RJR SPECIFICALLY MR GERSTNER RULED OUT RAIDING THE TOBACCO AND FOOD COMPANY FOR ITS CHIEF FINANCIAL OFFICER KARL VON DER HEYDEN OR ITS GENERAL COUNSEL LAWRENCE RICCIARDI WITH THAT ASSURANCE RJR IS INCREASINGLY LIKELY TO FILL MR GERSTNER'S POSTS FROM WITHIN ITS RANKS WITH MR VON DER HEYDEN PLAYING A CENTRAL ROLE FOR HIS PART MR GERSTNER IS STILL WIDELY EXPECTED TO BUILD A NEW TEAM OF MANAGERS AT IBM MEANWHILE IBM WAS DEALT A NEW BLOW TO ITS FINANCIAL IMAGE AS MOODY'S INVESTORS SERVICE INC KNOCKED DOWN THE ARMONK NY COMPANY'S CREDIT RATING TWO NOTCHES THE MOODY'S ACTION TAKES THE RATING ON ABOUT 18 BILLION OF IBM DEBT TO SINGLEA1 FROM DOUBLEA2 TODAY MR GERSTNER'S FORMAL CORONATION AT IBM IS EXPECTED TO COME AT A NEWS CONFERENCE HERE THIS MORNING AN OFFICIAL FAMILIAR WITH IBM'S NEGOTIATIONS WITH MR GERSTNER SAID THE COMPUTER GIANT PLANS TO GIVE MR GERSTNER BOTH THE CHAIRMAN AND CEO TITLES THOUGH THE CHAIRMAN'S POST MIGHTN'T BECOME EFFECTIVE UNTIL THE ANNUAL MEETING APRIL 26 THE FINAL DETAILS OF IBM'S AGREEMENT WITH MR GERSTNER WERE STILL BEING WORKED OUT YESTERDAY EVENING OFFICIALS CLOSE TO BOTH CAMPS SAID TERMS COULD STILL CHANGE MR GERSTNER IS KNOWN AS A TENACIOUS NEGOTIATOR WHO NEARLY SQUELCHED HIS OWN ARRIVAL AT RJR IN 1989 BECAUSE OF A LATESTAGE DISPUTE ABOUT HIS COMPENSATION EARLY THIS WEEK AS SPECULATION MOUNTED THAT MR GERSTNER WOULD BE TAPPED FOR THE IBM POST KKR'S TWO FOUNDING PARTNERS HENRY KRAVIS AND GEORGE ROBERTS REQUESTED A MEETING WITH MR GERSTNER TO LEARN HIS INTENTIONS THAT MEETING WAS HELD TUESDAY IN A HOTEL ROOM AT RANCHO MIRAGE CALIF WHERE RJR SPONSORED THE DINAH SHORE GOLF TOURNAMENT AT THE MEETING ACCORDING TO PEOPLE KNOWLEDGEABLE ABOUT THE TALKS MR GERSTNER SAID HE WAS A LEADING CANDIDATE FOR THE IBM JOB BY YESTERDAY AFTERNOON PEOPLE IN BOTH THE KKR AND RJR CAMPS SAID AN UNDERSTANDING HAD BEEN REACHED THAT MESSRS VON DER HEYDEN AND RICCIARDI WOULDN'T ACCOMPANY MR GERSTNER IN HIS MOVE TO IBM PEOPLE CLOSE TO THE RJR BOARD SAID PLANS FOR A SUCCESSOR TO MR GERSTNER ARE FLUID AND HAVEN'T BEEN RESOLVED THERE ARE SIGNS THAT KKR MAY TRY TO DEVISE A WAY OF SHARING POWER THAT OFFERS SOMETHING FOR BOTH MEN AND PERHAPS TO OTHERS OF MR GERSTNER'S TOP LIEUTENANTS TOO NONE OF THE RJR OR KKR EXECUTIVES WOULD DISCUSS THE SITUATION YESTERDAY IT WASN'T CLEAR WHETHER MESSRS VON DER HEYDEN AND RICCIARDI HAD ANY INTEREST IN GOING TO IBM AND WHETHER IT MARKED A CONCESSION BY MR GERSTNER TO LEAVE THEM ALONE INITIALLY JOHN GREENIAUS HEAD OF THE NABISCO FOOD DIVISION WAS REGARDED AS A PRIME CONTENDER TO SUCCEED MR GERSTNER BUT IT'S BELIEVED HE WILL STAY IN HIS CURRENT POST AT LEAST FOR THE NEXT FEW MONTHS BECAUSE RJR NEEDS TO PROJECT AN IMAGE OF STABILITY AT NABISCO RJR IS IN THE MIDST OF A COMPLEX PROPOSAL TO CREATE A SEPARATE CLASS OF STOCK FOR ITS NABISCO FOOD GROUP AND RAISE 16 BILLION IN EQUITY IT DOESN'T MAKE SENSE TO TAKE GREENIAUS OUT OF POSITION IN THE MIDDLE OF A 16 BILLION EQUITY OFFERING SAID A PERSON FAMILIAR WITH THE TRANSACTION IT WOULD BE DISRUPTIVE FOR NABISCO THE OFFERING IS CONSIDERED A CRUCIAL STEP IN WHAT MAY BE A LARGER RJR PLAN TO GIVE ITS TOBACCO AND FOOD UNITS GREATER AUTONOMY MR GERSTNER'S DEPARTURE IS CAUSING SOME ANXIETY AMONG INVESTORS HE'S LEAVING AT A VERY AWKWARD TIME SAID GARY LANGBAUM HEAD OF RESEARCH AT KEMPER FINANCIAL SERVICES INC WHICH IS A SIZABLE RJR BONDHOLDER KKR HAD GOOD REASON TO SEEK ASSURANCES ABOUT MR VON DER HEYDEN IBM IS BELIEVED TO BE SEARCHING FOR A NEW CHIEF FINANCIAL OFFICER TO SUCCEED FRANK METZ WHO WAS CLEARED ASIDE IN THE JANUARY EXECUTIVE SHAKEUP THAT ALSO CLAIMED IBM'S INCUMBENT CEO JOHN AKERS IBM IS UNDERSTOOD TO HAVE SENT FEELERS OUT TO MR VON DER HEYDEN WHO ATTRACTED CONSIDERABLE NOTICE FOR HIS ROLE IN REDUCING RJR'S DEBT THE PAST FOUR YEARS AS FOR MR RICCIARDI HE IS A LONGTIME ASSOCIATE OF MR GERSTNER'S DATING BACK TO THEIR DAYS TOGETHER AT AMERICAN EXPRESS CO IN THE 1980S IBM MAY BE LOOKING FOR A NEW GENERAL COUNSEL SOON TO TAKE OVER FROM DONATO EVANGELISTA WHO IS NEARING RETIREMENT ALTHOUGH THERE HAD BEEN SPECULATION THAT IBM MIGHT ANNOUNCE OTHER NEW EXECUTIVES ALONG WITH THE CEO OFFICIALS SAID MR GERSTNER'S WOULD BE THE ONLY APPOINTMENT UNVEILED TODAY IN DOWNGRADING IBM'S CREDIT RATING YESTERDAY MOODY'S CITED ITS EXPECTATION OF A CONTINUED SLIDE IN DEMAND FOR IBM'S HIGHMARGINED MAINFRAME PROCESSORS SECURITIES ANALYSTS THIS WEEK HAVE BEEN SOUNDING SIMILAR CONCERNS ESPECIALLY AMID A DISMAL FORECAST FROM RIVAL MAINFRAME MAKER AMDAHL CORP MOODY'S HAD STRIPPED IBM OF ITS PRIZED TRIPLEA RATING LAST YEAR THE OTHER MAJOR RATING AGENCY STANDARD & POOR'S CORP REMOVED ITS TRIPLEA RATING OF IBM IN JANUARY IN AN UNUSUALLY SEVERE ACTION THAT LOWERED IBM THREE NOTCHES TO DOUBLEA MINUS IBM'S STOCK SLIPPED 625 CENTS YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TO 5050 MOODY'S ACTION WAS ANNOUNCED AFTER THE MARKET CLOSED EBEN SHAPIRO CONTRIBUTED TO THIS ARTICLE 9303260091 930326 THURSDAY'S MARKETS STOCKS RALLY BONDS DROP DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES SURGED AFTER THREE DAYS OF DECLINES SPARKED BY POLITICAL STRIFE IN RUSSIA BOND PRICES FELL AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1594 POINTS TO 346132 STANDARD & POOR'S 500STOCK INDEX ROSE 281 TO 45088 AND THE NASDAQ COMPOSITE INDEX GAINED 665 TO 68101 ANALYSTS SAID INVESTORS WERE RELIEVED THAT PRESIDENT BORIS YELTSIN AND THE RUSSIAN PARLIAMENT APPEAR TO BE MOVING TOWARD A COMPROMISE MR YELTSIN'S CHIEF OPPONENT SAID HE NO LONGER SOUGHT THE PRESIDENT'S IMPEACHMENT IN ADDITION DRUG STOCKS REBOUNDED AFTER THEIR PUMMELING WEDNESDAY ADDING TO THE MARKET'S FIRM TONE ANALYSTS SAID THE EQUITY MARKET HAS WITHSTOOD SOME FAIRLY COMPELLING NEGATIVES IN THE LAST THREE SESSIONS SAID JOHN CONLON JR MANAGING DIRECTOR OF ROTHSCHILD INC WE'VE PROBABLY SEEN THE WORST OF IT FOR A WHILE INVESTORS LARGELY IGNORED SOME UNINSPIRING ECONOMIC NEWS INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE FOR THE WEEK ENDED SATURDAY FELL 2000 IN LINE WITH ECONOMISTS' EXPECTATIONS EXISTING SINGLEFAMILY HOME SALES SANK 61 IN FEBRUARY THE FACT IS THE FLOW OF FUNDS INTO THE STOCK MARKET REMAINS VERY POSITIVE MR CONLON SAID IT'S ENOUGH TO STABILIZE THE MARKET IF NOT PROVIDE A RUN THAT COULD BREACH THE OLD HIGHS THE FRENCH STOCK MARKET JUMPED 25 AS INVESTORS WERE ENCOURAGED THAT US INSTITUTIONS ARE SHOWING SIGNS OF INTEREST IN THAT MARKET AFTER FRANCE'S LEGISLATIVE ELECTIONS LAST WEEKEND WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 071 TO 9930 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 250020000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1149 ISSUES ROSE AND 741 FELL THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16423 MARKS AND 11730 YEN COMPARED WITH 16375 MARKS AND 11760 YEN WEDNESDAY 9303260090 930326 CLINTON PROPOSES INCREASED SPENDING ON TRANSPORTATION BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PROPOSED SPENDING 402 BILLION ON TRANSPORTATION IN FISCAL 1994 INCLUDING ADDITIONAL FUNDS TO BOLSTER SAFETY PROGRAMS AND FULFILL HIS PLEDGE TO REBUILD AMERICA THAT WOULD BE A 10 INCREASE FROM WHAT CONGRESS APPROPRIATED FOR FISCAL 1993 WHICH ENDS SEPT 30 THE ADMINISTRATION IS SEEKING THE FUNDS TO CARRY OUT PLANS TO ACCELERATE INVESTMENT IN HIGHWAYS AIRPORTS AND OTHER INFRASTRUCTURE PROJECTS TRANSPORTATION SECRETARY FEDERICO PENA TOLD LAWMAKERS YESTERDAY MR PENA A FORMER MAYOR OF DENVER APPEARED BEFORE THE HOUSE APPROPRIATIONS SUBCOMMITTEE ON TRANSPORTATION TO GIVE THE MOST DETAILED RUNDOWN YET ON HOW THE ADMINISTRATION INTENDS TO STIMULATE THE ECONOMY GENERATE JOBS AND ENHANCE BUSINESS PRODUCTIVITY CAPITAL INVESTMENTS HE ADDED ACCOUNT FOR ALMOST 71 OF THE PROPOSED TRANSPORTATION BUDGET OR 284 BILLION IF CONGRESS ENACTS THE PRESIDENT'S ECONOMICSTIMULUS PACKAGE WHICH IS SUPPOSED TO TAKE EFFECT IN THE CURRENT FISCAL YEAR THE TRANSPORTATION BUDGET REQUEST FOR FISCAL 1994 WOULD BE ESSENTIALLY THE SAME AS FOR THE CURRENT YEAR MR PENA SAID THE STIMULUS PACKAGE WOULD PROVIDE AN ADDITIONAL 42 BILLION THIS YEAR FOR TRANSPORTATION THE ADMINISTRATION IS SEEKING 206 BILLION FOR THE FEDERAL HIGHWAY ADMINISTRATION IN FISCAL 1994 INCLUDING 184 BILLION FOR HIGHWAYS AND BRIDGES AMONG OTHER THINGS IT PROPOSES SPENDING 224 MILLION A 49 JUMP FROM THIS YEAR TO SPEED UP THE DEVELOPMENT OF ELECTRONIC TECHNOLOGY DESIGNED TO REDUCE TRAFFIC CONGESTION MANY HIGHWAY PLANNERS BELIEVE SOCALLED INTELLIGENT VEHICLEHIGHWAY SYSTEMS A VARIETY OF TECHNIQUES DESIGNED TO IMPROVE TRAFFIC FLOW WILL BE A BETTER AND CHEAPER WAY TO REDUCE CONGESTION THAN POURING MORE CONCRETE THE ADMINISTRATION IS SEEKING MORE THAN 19 BILLION FOR SAFETY INITIATIVES INCLUDING A 14 BOOST FOR THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION AND A 10 INCREASE FOR THE FEDERAL RAILROAD ADMINISTRATION'S SAFETY PROGRAM MR PENA LAID OUT PLANS TO POUR 13 BILLION INTO HIGHSPEED GROUND TRANSPORTATION OVER THE NEXT FIVE YEARS BEGINNING WITH 140 MILLION IN FISCAL 1994 THE TRANSPORTATION DEPARTMENT WOULD HELP STATES FINANCE TRACK AND SIGNAL IMPROVEMENTS THAT WOULD ALLOW PASSENGER TRAINS TO TRAVEL SAFELY AT 125 MILES PER HOUR IN CERTAIN RAIL CORRIDORS HE SAID FEDERAL DOLLARS ALSO WOULD BE SPENT ON DEVELOPING A PROTOTYPE MAGNETICLEVITATION SYSTEM IN WHICH TRAINS WOULD BE PROPELLED BY POWERFUL MAGNETS ALONG GUIDEWAYS THE PROPOSED FEDERAL AVIATION ADMINISTRATION BUDGET OF 92 BILLION UP ONLY 35 FROM THIS YEAR WOULD REQUIRE SIGNIFICANT BELTTIGHTENING AT THE AGENCY MR PENA SAID 9303260089 930326 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 DIGITAL EQUIPMENT CORP 250 MILLION OF DEBENTURES DUE APRIL 1 2023 PRICED AS 7 3/4 AT 98512 TO YIELD 788 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 104 POINTS ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS GEORGIA POWER CO 50 MILLION OF FIRST MORTGAGE BONDS DUE APRIL 1 2008 WON BY DEALERS LED BY FIRST BOSTON CORP THE BONDS WILL BE REOFFERED AS 6 7/8 AT 99125 TO YIELD 697 THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF ONE POINT ABOVE THE TREASURY 10YEAR NOTE FIRST BOSTON'S BID RESULTED IN A 7035 NET INTEREST COST TO THE COMPANY THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P GEORGIA POWER IS A UNIT OF SOUTHERN CO GEORGIA POWER 75 MILLION ISSUE OF FIRST MORTGAGE BONDS DUE APRIL 1 2023 WON BY DEALERS LED BY GOLDMAN SACHS & CO THE BONDS WILL BE REOFFERED AS 7 3/4 AT 9908 TO YIELD 783 THE BONDS NONREFUNDABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF ONE POINT ABOVE THE TREASURY 30YEAR BOND GOLDMAN SACHS'S BID RESULTED IN A 7872 NET INTEREST COST TO THE COMPANY THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P PACIFICORP 150 MILLION OF FIRST MORTGAGE AND COLLATERAL TRUST BONDS DUE APRIL 1 2005 PRICED AS 6 3/4 AT 99869 TO YIELD 6766 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 080 POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS FAIRFAX COUNTY VA 202 MILLION OF SERIES 1993 PUBLIC IMPROVEMENT REFUNDING BONDS WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 514 YIELDS FOR REOFFERED BONDS RANGE FROM 240 IN 1994 TO 560 IN 2009 MOODY'S AND S&P HAVE RATED THE BONDS TRIPLEA INDIANA TRANSPORTATION FINANCE AUTHORITY 1936 MILLION OF SERIES 1993A HIGHWAY REVENUE BONDS PRICED BY A MERRILL LYNCH & CO GROUP INCLUDED IN THE OFFERING ARE 1775 MILLION CURRENTINTEREST BONDS WHICH WERE GIVEN YIELDS THAT RANGE FROM 235 IN JUNE 1993 TO 625 IN JUNE 2012 AND JUNE 2015 THERE ARE ALSO 161 MILLION ZEROCOUPON BONDS BONDS DUE IN DECEMBER 2015 JUNE 2016 AND DECEMBER 2016 WILL YIELD 620 AT THEIR MATURITIES BONDS DUE IN JUNE 2017 DECEMBER 2017 AND JUNE 2018 WILL YIELD 620 AT THEIR MATURITIES THIS OFFERING IS INSURED BY AMBAC INDEMNITY CORP AND ALL OF THE BONDS CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MINNEAPOLIS ST PAUL METROPOLITAN AREA COUNCIL OF MINNESOTA 735 MILLION REFUNDING BONDS WON BY A LEHMAN BROTHERS GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5011 YIELDS RANGE FROM 370 IN 1996 TO 555 IN 2009 AND 2010 THE BONDS HAVE BEEN RATED TRIPLEA BY MOODY'S AND S&P NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP 3528 MILLION OF SERIES 1993B REFUNDING BONDS PRICED BY A MORGAN STANLEY & CO GROUP YIELDS RANGE FROM 450 IN 1999 TO 597 IN 2021 THE BONDS HAVE BEEN RATED SINGLEAPLUS BY FITCH INVESTORS SERVICE INC BOTH MOODY'S AND S&P ARE EXPECTED TO ASSIGN SINGLEA RATINGS LGAC IS A PUBLIC BENEFIT CORPORATION OF NEW YORK STATE KENDALL SQUARE RESEARCH CORP 2807350 COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC GILAT SATELLITE NETWORKS LTD INITIAL OFFERING OF 23 MILLION COMMON SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO UNIVERSAL HEALTH REALTY INCOME TRUST 17 MILLION COMMON SHARES PRICED AT 1825 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO SOFTIMAGE INC 122 MILLION COMMON SHARES PRICED AT 17 A SHARE LIFE USA HOLDING INC 45 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY STEPHENS INC AUTOTOTE CORP 3809660 SHARES OF CLASS A COMMON STOCK PRICED AT 27 A SHARE THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO DEAN WITTER REYNOLDS INC AND JEFFERIES & CO FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES GOLD 1507 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2992 YEARS FEDERAL HOME LOAN MORTGAGE CORP 750 MILLION OF REMIC SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES GOLD 1506 IS BACKED BY FREDDIE MAC GOLD 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 762 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REMIC SECURITIES OFFERED BY KIDDER PEABODY THE OFFERING SERIES GOLD 1508 IS BACKED BY FREDDIE MAC 75 MORTGAGE BACKED SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 810 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REMIC SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1509 IS BACKED BY FREDDIE MAC 15YEAR 65 MORTGAGE BACKED SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 725 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 199360 IS BACKED BY 7 30YEAR MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS AMERICAN TELEPHONE & TELEGRAPH CO US 400 MILLION OF 5 5/8 EUROBONDS DUE APRIL 8 1998 AT ISSUE PRICE 101305 VIA CREDIT SUISSE FIRST BOSTON REOFFERED AT 9973 TO YIELD 569 ANNUALLY A SPREAD 040 POINT ABOVE COMPARABLE US TREASURY NOTE FEES 1 7/8 BANCO NACIONAL DE COMERCIO EXTERIOR CAYMAN ISLANDS MEXICAN PARENT 150 MILLION OF 8 EUROBONDS DUE APRIL 14 2000 AT ISSUE PRICE 100825 VIA SWISS BANK CORP REOFFERED AT 9995 TO YIELD 801 ANNUALLY A SPREAD 2195 POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1 7/8 MORTGAGE BANK OF DENMARK DENMARK 150 MILLION CANADIAN DOLLARS OF 7 3/8 EUROBONDS DUE APRIL 30 1998 AT ISSUE PRICE 101071 VIA SALOMON BROTHERS INTERNATIONAL LTD REOFFERED TO INVESTORS AT 99446 TO YIELD 751 ANNUALLY A SPREAD 060 POINT ABOVE CANADIAN GOVERNMENT'S 6 1/4 NOTE DUE 1998 GUARANTOR KINGDOM OF DENMARK FEES 1 7/8 PROVINCE OF NEWFOUNDLAND CANADA 100 MILLION CANADIAN DOLLARS OF 8 3/4 EUROBONDS DUE MAY 12 2003 AT ISSUE PRICE 100425 VIA SCOTIA MCLEOD INC REOFFERED TO INVESTORS AT 9885 TO YIELD 893 ANNUALLY SPREAD 1306 POINTS ABOVE CANADIAN GOVERNMENT'S 7 1/4 NOTE DUE JUNE 2003 BORROWER CAN SET NEW COUPON AT MATURITY AND OFFER BONDS FOR ADDITIONAL 10 YEARS INVESTORS NOT OBLIGED TO ACCEPT FEES 2 FURUKAWA CO JAPAN 15 BILLION YEN OF 435 EUROBONDS DUE JULY 22 1997 AT ISSUE PRICE 10155 VIA YAMAICHI INTERNATIONAL EUROPE LTD REOFFERED AT 100225 TO YIELD 429 FEES 1 5/8 9303260088 930326 FIRST INTERSTATE BANCORP LOANS LOS ANGELES FIRST INTERSTATE BANCORP SAID ITS WILL MAKE 2 BILLION OF COMMUNITY DEVELOPMENT LOANS OVER THE NEXT 10 YEARS IN DISTRESSED AREAS OF CALIFORNIA INCLUDING RIOTSCARRED SOUTH CENTRAL LOS ANGELES FIRST INTERSTATE SAID THE PROGRAM WILL INCLUDE LOANS FOR CONSTRUCTION AND ACQUISITION OF LOWINCOME HOUSING AND FOR SMALL BUSINESS DEVELOPMENT AMONG OTHER THINGS IN TRADING ON THE NEW YORK STOCK EXCHANGE FIRST INTERSTATE CLOSED AT 5550 UP 875 CENTS 9303260087 930326 GERMAN STEEL OUTPUT FALLS FRANKFURT GERMAN PRODUCTION OF RAW STEEL FELL 146 IN FEBRUARY FROM A YEAR EARLIER TO 2940000 METRIC TONS THE FEDERAL STATISTICS OFFICE IN WIESBADEN SAID IRON OUTPUT WAS DOWN 93 TO 236 MILLION TONS IN THE FIRST TWO MONTHS OF THE YEAR RAW STEEL PRODUCTION FELL 173 FROM THE SAME PERIOD A YEAR AGO TO 573 MILLION TONS IRON OUTPUT FELL 123 TO 458 MILLION TONS WESTERN GERMAN RAW STEEL PRODUCTION IN FEBRUARY WAS DOWN 149 FROM THE PREVIOUS YEAR AT 274 MILLION TONS IRON PRODUCTION FELL 96 TO 215 MILLION TONS 9303260086 930326 COMEX CHAIRMAN QUITS TAKEOVER TEAM BY WARREN GETLER AND JEFFREY TAYLOR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK DONNA REDEL THE CHAIRMAN OF NEW YORK'S COMMODITY EXCHANGE BOWED TO MOUNTING ANGER FROM COMEX MEMBERS AND RESIGNED AS HEAD OF A TEAM NEGOTIATING THE PROPOSED TAKEOVER OF THE COMEX BY THE CHICAGO BOARD OF TRADE BOARD MEMBERS SAID MS REDEL RESIGNED WEDNESDAY NIGHT AS HEAD OF THE NEGOTIATING TEAM BEFORE THE BOARD TOOK A FORMAL VOTE ON A PROPOSAL TO STRIP HER OF THE ROLE DISSATISFACTION AMONG COMEX MEMBERS WITH THE THE TENTATIVE TAKEOVER OF THEIR EXCHANGE HAS BEEN MOUNTING AND THE DEAL APPEARS IN SERIOUS JEOPARDY MS REDEL 40 YEARS OLD REMAINS CHAIRMAN OF THE AILING EXCHANGE THE WORLD'S LARGEST PRECIOUSMETALS MARKET ALTHOUGH MOVES ARE AFOOT AMONG SOME MEMBERS TO CHANGE THE COMEX BYLAWS TO MAKE IT EASIER TO REMOVE HER FROM OFFICE BOARD MEMBERS ALSO SAID THEY DISMISSED THE LAW FIRM ROGERS & WELLS THAT HAD BEEN ADVISING THE COMEX ON THE TAKEOVER NEGOTIATIONS FURTHER THEY SAID MS REDEL AGREED TO REIMBURSE THE COMEX FOR A FEW THOUSAND DOLLARS OF TRAVEL AND RELATED EXPENSES FOLLOWING A UNUSUAL EXCHANGE AUDIT OF HER EXPENSES MS REDEL EARLIER HAD CHARACTERIZED THE AUDIT AS POLITICALLY MOTIVATED SHE COULDN'T BE REACHED FOR COMMENT YESTERDAY MS REDEL HAD BECOME THE FOCAL POINT OF AN ANGRY CAMPAIGN AMONG COMEX MEMBERS TO STOP HER PROPOSAL TO SELL THE EXCHANGE TO THE GIANT BOARD OF TRADE TERMS OF THE PROPOSED TAKEOVER ARE STILL BEING NEGOTIATED BUT SOME DISGRUNTLED COMEX MEMBERS SAY THEY WERE MISLED BY MS REDEL ABOUT THE CHANCES THAT COMEX TRADERS WOULD BE GIVEN ACCESS TO SOME OF THE CBOT'S LUCRATIVE INTERESTRATE AND AGRICULTURAL FUTURES CONTRACTS WITHOUT THAT ACCESS WHICH THE CBOT APPEARS UNWILLING TO OFFER COMEX MEMBERS SAY THE PROPOSED TAKEOVER WILL DIE AS THE DEAL STANDS NOW THERE WILL BE NO DEAL SAYS JOHN HANEMANN A COMEX DIRECTOR AND FORMER EXCHANGE CHAIRMAN CBOT OFFICIALS AGREE THAT THE TAKEOVER IS IN DANGER THERE'S AN AWFUL LOT OF OPPOSITION AT COMEX AND MORE PASSION AMONG THOSE WHO ARE AGAINST IT THAN THOSE WHO ARE FOR IT CONCEDES A CBOT OFFICIAL THE PROPOSED TAKEOVER WAS NEGOTIATED EARLIER THIS YEAR BETWEEN MS REDEL AND CBOT CHAIRMAN PAT ARBOR MS REDEL SOUGHT THE AGREEMENT TO TAKE SOME OF THE FINANCIAL PRESSURE OFF THE AILING METALS EXCHANGE AND TO GIVE ITS MEMBERS ACCESS TO MORE LUCRATIVE FUTURES CONTRACTS THAN THE GOLD SILVER COPPER AND OTHER METALS CONTRACTS THAT ARE NOW THE MAINSTAY OF THE EXCHANGE THE DEAL DOES NOT CALL FOR CBOT TO INVEST ANY MONEY BUT RATHER TO ESTABLISH A TRUST FUND FOR COMEX MEMBERS BASED SOLELY ON THE COMEX'S EARNINGS THE AGREEMENT WOULD SAVE COMEX WHICH IS OWNED BY ITS MEMBERS AN ESTIMATED 8 MILLION TO 10 MILLION IN ANNUAL OPERATING COSTS BUT THE PACT DOESN'T REQUIRE CBOT TO PUT UP ANY MONEY OR TO SHARE ANY OF ITS MOST LUCRATIVE CONTRACTS WITH COMEX TRADERS THE PROPOSAL AS IT STANDS NOW ALLOWS COMEX MEMBERS TO TRADE SUCH MINOR CBOT CONTRACTS AS ITS FUTURES BASED ON SMALL STOCKS INSURANCE AND EPA POLLUTION ALLOWANCES BUT IT ISN'T LIKELY THAT CBOT MEMBERS WILL APPROVE ANY DEAL THAT UNDERMINES THEIR LUCRATIVE FRANCHISE IN AGRICULTURAL AND INTERESTRATE CONTRACTS INDEED WHEN CBOT MEMBERS GOT WIND THAT SOME LIMITED ACCESS TO SUCH PRODUCTS WAS BEING DISCUSSED BY CBOT AND COMEX NEGOTIATORS THEIR INTENSE LOBBYING AGAINST SUCH A PROPOSAL FORCED CBOT NEGOTIATORS TO TAKE THE OFFER OFF THE TABLE COMEX MEMBERS COMPLAIN THAT MS REDEL FALSELY RAISED THEIR HOPES THAT THEY WOULD BE ABLE TO TRADE THE AGRICULTURAL AND INTERESTRATE PRODUCTS BUT CBOT OFFICIALS POINT OUT THAT THE LANGUAGE OF THE ORIGINAL AGREEMENT CLEARLY STATES THAT COMEX FLOORACCESS MEMBERS SHALL HAVE NO MEMBER TRADING PRIVILEGES IN CBOT AGRICULTURAL OR INTERESTRATE CONTRACTS YET IT ISN'T JUST THE LACK OF ACCESS TO THOSE CONTRACTS THAT HAS RAISED THE IRE OF COMEX MEMBERS THEY ALSO OBJECT TO THE SECRETIVENESS WITH WHICH THE AGREEMENT WAS NEGOTIATED IN JANUARY AT MEETINGS IN CHICAGO AND WASHINGTON BECAUSE THE NATION'S COMMODITY EXCHANGES ARE MEMBEROWNED THEY ARE GOVERNED BY ELABORATE STRUCTURES OF MEMBERSTAFFED COMMITTEES THE CHAIRMAN OF A COMMODITY EXCHANGE IS NORMALLY EXPECTED TO CIRCULATE AMONG MEMBERS AND BUILD A CONSENSUS BEFORE UNDERTAKING ANY MAJOR CHANGE IN POLICY BUT MS REDEL AND MR ARBOR MET ONLY WITH LAWYERS OF EACH EXCHANGE TO WORK OUT THE JAN 22 AGREEMENT WHICH THEY THEN PUBLICLY ANNOUNCED THREE DAYS LATER WHILE SOME COMEX MEMBERS INSIST SUCH SECRECY WAS NECESSARY OTHERS FUME THAT THEY WERE CAUGHT UNAWARE BY A PROPOSED DEAL THAT THEY SAY SMACKS OF DESPERATION IN AN INTERVIEW BEFORE HER DEPARTURE FROM THE COMMITTEE MS REDEL DEFENDED THE AGREEMENT AS A GOOD ONE AND ARGUED THAT SHE ACTED WITH THE BEST INTERESTS OF THE EXCHANGE IN MIND WHEN THE TALKS BEGAN NEGOTIATING WITH 772 PEOPLE DOESN'T GET YOU ANYWHERE INITIALLY SHE SAID SHE CONCEDED THAT THE COMEX AND CBOT LEADERSHIP COULD HAVE HAD A MORE FORMALIZED INFORMATIONAL FLOW TO MEMBERS ONCE THE BARGAINING OVER DETAILS BEGAN BUT THAT'S SCANT COMFORT TO MANY COMEX MEMBERS THINGS SHOULD HAVE BEEN HANDLED DIFFERENTLY SAYS MR HANEMANN THE FORMER COMEX CHAIRMAN WE SHOULD HAVE HAD A LITTLE MORE TIME TO THINK ABOUT IT MS REDEL THE FIRST WOMAN TO HEAD A US COMMODITIES EXCHANGE CAME UNDER INCREASING PRESSURE IN THE WEEKS FOLLOWING THE ANNOUNCEMENT OF THE PROPOSED TAKEOVER RECENTLY ONE MEMBER OF THE SIXPERSON NEGOTIATING COMMITTEE ASSIGNED TO WORK OUT DETAILS OF THE AGREEMENT RESIGNED CONTENDING THAT MS REDEL WAS KEEPING INFORMATION FROM THE PANEL THESE MANEUVERINGS BY MS REDEL HAVE RESULTED IN OUR EXCHANGE LOOKING BUMBLING UNINFORMED DISJOINTED AND DESPERATE FOR ANY DEAL AT ALL MICHAEL FREEBURG THE DISSATISFIED MEMBER SAID IN A LETTER TO THE COMEX BOARD AT THE SAME TIME MORE THAN 200 FLOOR MEMBERS HAVE LAUNCHED AN EFFORT TO CHANGE THE EXCHANGE'S BYLAWS TO MAKE IT EASIER TO REMOVE THE CHAIRMAN AND BOARD MEMBERS IN AN EARLIER INTERVIEW MS REDEL EMPHASIZED THAT ALL 25 COMEX BOARD MEMBERS UNANIMOUSLY APPROVED THE INITIAL AGREEMENT AND THAT HER BOARD'S EXECUTIVE COMMITTEE HAD SIGNALED REPEATEDLY FOR THE COMEX'S NEGOTIATING TEAM TO CONTINUE TALKING SHE ALSO SAID SHE HAD BEEN HOLDING INFORMAL TALKS WITH OTHER EXCHANGES INTERESTED IN AFFILATION AT ITS MEETING WEDNESDAY THE COMEX BOARD REJECTED AS INADEQUATE AN OFFER FROM THE RELATIVELY SMALL COFFEE SUGAR & COCOA EXCHANGE MEANTIME DANIEL RAPPAPORT THE NEWLY ELECTED CHAIRMAN OF THE LARGER NEW YORK MERCANTILE EXCHANGE SAID HIS EXCHANGE MIGHT BE INTERESTED IN A DEAL BUT STRESSED THAT HIS BOARD HASN'T YET ADDRESSED THE ISSUE PREVIOUS TALKS ABOUT A MERGER BETWEEN THE NEW YORK MERC AND COMEX NEVER PROGRESSED TO A VOTE AMONG MEMBERS YET MR RAPPAPORT RECENTLY SUGGESTED THAT HE'S MORE OPTIMISTIC THAT A DEAL ONE THAT WOULD REDUCE COSTS AT BOTH EXCHANGES COULD BE WORKED OUT AS LONG AS HIS EXCHANGE RETAINS EXCLUSIVE TRADING RIGHTS TO ITS CONTRACTS MONEY IS ALWAYS SOMETHING WE COULD TALK ABOUT HE ADDS PRIOR TO HER LEAVING THE NEGOTIATING TEAM WEDNESDAY MS REDEL SAID SHE WOULD BE SATISFIED IF SHE COULD BRING A FORMAL AGREEMENT TO THE COMEX MEMBERSHIP FOR A VOTE IF WE SIMPLY GET A MERGER PROPOSAL BEFORE OUR MEMBERS THEN WE HAVE ACCOMPLISHED SOMETHING SHE SAID 9303260085 930326 BUSINESS BRIEF TELEFLEX INC COMPANY BUYS MOST ASSETS OF COLLINS & AIKMAN UNIT TELEFLEX INC PLYMOUTH MEETING PA SAID IT ACQUIRED MOST OF THE ASSETS OF ENGINEERING GROUP A UNIT OF COLLINS & AIKMAN GROUP INC FOR 38 MILLION IN CASH AND ASSUMPTION OF 9 MILLION IN LIABILITIES TELEFLEX SAID THE ACQUISITION IS AN EXCELLENT STRATEGIC FIT WITH ITS SERMATECH OPERATIONS BOTH SERMATECH AND ENGINEERING GROUP PROVIDE ENGINEERING SERVICES FOR TURBINE ENGINES TELEFLEX IS A DIVERSIFIED INDUSTRIAL CONCERN SERVING AEROSPACE AUTOMOTIVE AND MEDICAL MARKETS COLLINS & AIKMAN BASED IN CHARLOTTE NC IS A UNIT OF COLLINS & AIKMAN HOLDINGS CORP WHICH IS JOINTLY OWNED BY BLACKSTONE CAPITAL PARTNERS LP AND WASSERSTEIN PERELLA PARTNERS LP 9303260084 930326 OILFIELD SERVICE FIRMS SEE TURNAROUND AMID HIGHER PRICES FOR NATURAL GAS BY MARIA MOOSHIL SPECIAL TO THE WALL STREET JOURNAL NEW ORLEANS LAST YEAR IT LEFT A PIT IN EVERYONE'S STOMACH THIS YEAR IT'S EXPECTED TO LEAD COMPANIES OUT OF THE WOODS THE CLICHEINSPIRING IT IS NATURAL GAS AND IT'S ABOUT ALL ANYONE WANTS TO TALK ABOUT HERE AT THE HOWARD WEIL ENERGY CONFERENCE WHERE EXECUTIVES FROM 140 GAS OIL AND OILFIELD SERVICE COMPANIES HAVE BEEN TALKING TO MONEY MANAGERS AND INVESTORS ABOUT THEIR COMPANIES AND A BATTERED ENERGY INDUSTRY NATURAL GAS PRICES WHICH PLUMBED THE 1ATHOUSANDCUBICFEET LEVEL THIS TIME LAST YEAR ARE HOVERING AROUND 2 A THOUSAND CUBIC FEET THIS YEAR ALTHOUGH SPRING USUALLY BRINGS A SEASONAL DIP WHAT IS MORE ENCOURAGING HOWEVER IS THAT 2 APPEARS TO BE A NEW FLOOR FOR THE COMMODITY'S VOLATILE PRICE INDUSTRY WATCHERS SAY HIGHER PRICES MEAN EXPLORATION AND DEVELOPMENT COMPANIES GET MORE FOR THEIR PRODUCT AND THUS ARE MORE WILLING TO DRILL AND PRODUCE WELLS THAT IN TURN MEANS MORE WORK FOR OILFIELD SERVICE COMPANIES THE OUTLOOK FOR THE BUSINESS HAS NEVER BEEN BETTER IN THE LAST 10 YEARS SAID C ROBERT PALMER CHAIRMAN OF ROWAN COS A HOUSTONBASED DRILLING CONTRACTOR AND BAKER HUGHES INC CHAIRMAN JAMES WOODS IS CERTAIN THAT THE COUNTRY'S APPARENT MOVEMENT TOWARD NATURAL GAS WILL LEAD OIL SERVICE COMPANIES LIKE HIS OUT OF THE WOODS BUT WHILE OPTIMISM IS FLOWING FROM EXECUTIVES' MOUTHS THEY'RE DOING THEIR BEST TO CONVINCE INVESTORS THAT THE TURNAROUND IS REAL THIS TIME THE EXPLORATION END OF THE INDUSTRY HAS GOTTEN BURNED MANY TIMES CONCEDED SEAGULL ENERGY CORP CHAIRMAN BARRY GALT INDEED MANY OFFSHORE DRILLERS SUCH AS GLOBAL MARINE INC WERE SCALDED BY EARLIER PREDICTIONS OF RECOVERY IN 1986 THE HOUSTON OFFSHORE DRILLING CONTRACTOR FILED FOR BANKRUPTCYLAW PROTECTION AFTER IT TOOK ON TOO MUCH DEBT FOR AN EXPANSION PROGRAM AT A TIME WHEN COMMODITY PRICES WERE PLUMMETING IT EMERGED FROM CHAPTER 11 PROTECTION IN 1989 DAVID HERASIMCHUK GLOBAL MARINE'S VICE PRESIDENT OF MARKET DEVELOPMENT BELIEVES THAT US NATURAL GAS NEEDS THIS YEAR WILL ENSURE HIGHER PRICES AND BRING A RISE IN THE 100 RIGS NOW DRILLING IN THE GULF OF MEXICO ABOUT 50 LESS THAN WHAT IS NEEDED TO REPLACE RESERVES WE THINK THAT NUMBER WILL TURN SHARPLY AND TURN QUICKLY BUT WE'RE NOT BETTING THE COMPANY WE'RE RIGHT THIS TIME HE SAID DESPITE HISTORY'S LESSONS NATURAL GAS INDUSTRY EXECUTIVES AND ANALYSTS CONTEND THINGS ARE DIFFERENT THIS TIME FIRST HURRICANE ANDREW IN AUGUST WIPED OUT PLATFORMS AND DAMAGED RIGS IN THE GULF THE TEMPORARY SUSPENSION OF PRODUCTION SCARED BUYERS OF NATURAL GAS WHO SENT THE PRICE OF GAS FUTURES SOARING TO 275 A THOUSAND CUBIC FEET IN SEPTEMBER THERE WAS ONLY A 4 SUPPLY INTERRUPTION BUT PRICES SKYROCKETED HOWARD WEIL LABOUISSE FRIEDRICHS ANALYST G BRYAN DUTT SAID THAT WAS AN INDICATION OF HOW CLOSE WE WERE TO SUPPLY/DEMAND BALANCE PRODUCTION HAS BEEN FALLING SINCE 1986 ACCORDING TO THE ENERGY INFORMATION ADMINISTRATION YET DEMAND FOR GAS HAS CONTINUED TO RISE SETTING UP A COLLISION OF SUPPLY AND DEMAND THE AGENCY SAYS DEMAND GROWTH WILL RISE 34 THIS YEAR AND 2 NEXT YEAR THE YEAREND DISCONTINUATION OF A TAX CREDIT FOR DRILLING IN DIFFICULT FORMATIONS AND A STORM ON THE EASTERN SEABOARD IN MARCH ALSO HELPED EXACERBATE THE SUPPLY SITUATION INDUSTRY WATCHERS SAID AND A HANDFUL OF EXECUTIVES MAINTAIN THAT THE SUREST REASON NATURAL GAS PRICES WON'T FALL THIS YEAR IS THE NEW FEDERAL REGULATIONS FOR INTERSTATE GAS PIPELINES UNDER THE RULES DESIGNED TO PROMOTE COMPETITION LOCAL GAS DISTRIBUTION COMPANIES AND OTHER END USERS WILL BE RESPONSIBLE FOR LINING UP THEIR OWN GAS SUPPLIES INSTEAD OF RELYING ON PIPELINES AS IN THE PAST IN PREPARATION PIPELINE COMPANIES AREN'T REPLENISHING THEIR GAS SUPPLIES IN AN EFFORT TO PREVENT ARGUMENTS OVER COSTS DURING THE TRANSITION THE TRANSITION WHICH IS UNDER WAY AND MUST BE COMPLETED BEFORE THIS WINTER IS CREATING A GAP IN GAS SUPPLIES THE EXECUTIVES SAID 9303260083 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT HOLLYWORLD MISSING LINKS SYNERGY BENEFITS HAVE SO FAR ELUDED THE ENTERTAINMENT GIANTS BY JOHNNIE L ROBERTS HOLLYWOOD TALK ABOUT STRANGE BEDFELLOWS WHEN ABOUT 40 EXECUTIVES OF SONY USA GATHERED HERE FOR A MEETING LAST NOVEMBER THE CULTURE CLASH COULDN'T HAVE BEEN MORE STARK FROM HARDWARE CAME THE MARKETING EXPERTS BUTTONEDDOWN TYPES FROM THE COMPANY'S EAST COAST CONSUMERELECTRONICS BUSINESS ALSO PRESENT IN ITALIANCUT SUITS OR LAIDBACK CASUAL GEAR WERE THE EXECUTIVES FROM SOFTWARE SONY'S WEST COAST MOVIE STUDIOS AND MUSIC LABELS OVER A SUMPTUOUS BUFFET LUNCH IN A MEETING ROOM ON THE SPRAWLING SONY PICTURES STUDIO LOT EACH GROUP MADE PRESENTATIONS ON PROJECTS MANY OF THEM STILL MONTHS OR EVEN YEARS AWAY FROM REALITY THEY TALKED OF NEW MOVIES AND RECORDINGS OF CONSUMERELECTRONICS HARDWARE AND VIDEO GAMES THE AIM OF THE MEETING TO CAPTURE THE ELUSIVE SYNERGY BETWEEN OPERATING UNITS TO USE SOFTWARE TO SELL HARDWARE TO SELL SOFTWARE TO SELL IT WAS SYNERGY AFTER ALL THAT DROVE COMPANIES LIKE SONY CORP TIME WARNER INC AND NEWS CORP TO TAKE ON BILLIONS OF DOLLARS OF DEBT IN THE 1980S TO ACQUIRE OTHER ENTERTAINMENT AND MEDIA COMPANIES IT WAS SYNERGY THAT SPURRED SONY FOR INSTANCE TO PAY MORE THAN 6 BILLION FOR RECORD AND MOVIE OPERATIONS AND HUNDREDS OF MILLIONS MORE TO FINANCE THEIR EXPANSION BUT SONY AND THE OTHER BEHEMOTHS OF GLOBAL ENTERTAINMENT ARE OFTEN FINDING THAT SYNERGY WORKS BETTER ON PAPER THAN IN PRACTICE CONFLICTING CULTURES AREN'T JUST ABOUT WHAT PEOPLE WEAR TO MEETINGS MORE IMPORTANT THEY HAVE MADE IT DIFFICULT FOR DIFFERENT DIVISIONS TO WORK TOGETHER TO HELP THE CORPORATE WHOLE SYNERGY BIG WIND LOUD THUNDER NO RAIN SAYS SECURITIES ANALYST JEFFREY LOGSDON OF SEIDLER AMDEC IN LOS ANGELES IT'S GREAT TO TALK ABOUT CONCEPTUALLY BUT AT THE END OF THE DAY IT'S MINIMAL MANAGERS RESPONSIBLE FOR PROFIT CENTERS HE SAYS ARE FOCUSED ON THEIR OWN INTERESTS AND NOT NECESSARILY THE CORPORATE INTEREST SOME ALSO QUESTION WHETHER THE BENEFITS OF SYNERGY COULD HAVE BEEN ACHIEVED AT MUCH LOWER COST BY SIMPLY ENTERING INTO PARTNERSHIPS OR JOINT VENTURES WITH OTHER COMPANIES THEY ALSO WORRY THAT THE QUEST FOR SYNERGY MAY FORCE A COMPANY TO USE ONE PRODUCT TO PROMOTE ANOTHER THAT MIGHT NOT BE RIGHT FOR THE MARKET SONY FOR EXAMPLE HAS PUT ITS MOVIES ON MINIATURE VIDEOCASSETTES TO SUPPORT ITS EIGHTMILLIMETER VIDEOCASSETTE RECORDER BUT THAT PRODUCT HASN'T BEEN MUCH OF A HIT IN THE MARKET BUT THE COMPANIES INSIST THAT SYNERGY WILL WORK AND THEY ARE PUSHING MORE MEETINGS LIKE THE NOVEMBER GATHERING AT SONY TO MAKE SURE THAT IT DOES MUCH OF THAT MEETING FOCUSED ON THE SYNERGY POSSIBILITIES FROM THE LAST ACTION HERO A BIGBUDGET MOVIE DUE OUT THIS SUMMER FROM SONY'S COLUMBIA PICTURES THE MOVIE A SPOOF ON ACTION HEROES STARS ARNOLD SCHWARZENEGGER IT WAS CLEAR TO US THAT TO MAKE THIS PICTURE MEANT RECOMMENDING TO THE SONY BOSSES THAT YOU HAVE A FRANCHISE THAT GOES WELL BEYOND THE MOVIE SAYS MARK CANTON CHAIRMAN OF COLUMBIA PICTURES THIS ISN'T THE TYPE OF MOVIE YOU WANT TO DO IN ISOLATION PRIOR TO THE NOVEMBER MEETING MR CANTON SAYS HE ASKED PEOPLE TO GO BACK TO THEIR DIVISIONS AND CALCULATE WHAT THEY COULD BRING TO THE PARTY AND THE PROSPECTIVE PROFIT MARGINS THAT MADE SENSE FOR ALL OF THIS AS THE SONY MEETING BEGINS SOFTWARE TAKES THE FLOOR FIRST WE CAME TO THE MEETING TO LET US SONY KNOW ABOUT IT SAYS SID GANIS COLUMBIA'S TOP MARKETER THE MOVIE HE ADDS HOLDS HEAVYDUTY BUSINESS OPPORTUNITIES FOR ALL OF THE ASSEMBLED SONY FAMILY SONY'S MUSIC MARKETERS QUICKLY SEIZE THE OPPORTUNITY TO PRODUCE THE MOVIE'S SOUNDTRACK ALBUM WHICH WILL FEATURE A ROCK STAR FROM A SONY MUSIC LABEL WE THINK THIS WILL BE A MAJOR SOUNDTRACK ONE MUSIC MARKETER SAYS ANOTHER ASKS WHETHER THE YETTOBENAMED ROCK STAR COULD APPEAR IN THE MOVIE AND WHETHER MR SCHWARZENEGGER WOULD APPEAR IN A MUSIC VIDEO FROM THE SOUNDTRACK THE ANSWER TO BOTH IS QUITE POSSIBLE FROM ANOTHER CORNER OF THE ROOM MARKETERS FROM SONY ELECTRONIC PUBLISHING WHICH PRODUCES VIDEO GAMES SEE AN OPPORTUNITY FOR A VIDEO GAME BASED ON THE LAST ACTION HERO AS FOR THE HARDWARE MARKETERS PERHAPS THE MOVIE COULD BE A FLASHY PROMOTION VEHICLE FOR THEIR LATEST POTENTIAL HIT IN CONSUMER ELECTRONICS THE MINIDISC PLAYER THE MINIDISC PLAYS A NEW MUSIC FORMAT A 25INCH OPTICAL DISK THAT RECORDS MUSIC AND DELIVERS PRERECORDED MUSIC WITH NEAR COMPACTDISK SOUND QUALITY THE LAST ACTION HERO COULD SHOWCASE THE MINIDISC BY USING IT AS A SNAZZY PROP THAT PROMOTES THE PRODUCT AS BEING ON THE CUTTING EDGE THE HARDWARE PEOPLE SUGGEST THE MEETING GOES WELL BUT THERE'S AN UNDERCURRENT OF TENSION AND PRIVATELY SOME EXECUTIVES EXPRESS RESERVATIONS ABOUT THE OTHER SIDE FOR EXAMPLE ONE HARDWARE MARKETER FRETS THAT THE SOFTWARE TYPES ARE MAKING TOO MUCH OF THE SYNERGISTIC POSSIBILITIES OF THIS ONE MOVIE AFTER ALL IT'S JUST ONE MOVIE HE SAYS IT MAY GIVE A LITTLE PUSH TO THE MINIDISC BUT THE MINIDISC HAS THE POTENTIAL TO BE A LONGTERM BLOCKBUSTER ANYWAY MY CONCERN ABOUT ALL OF THIS HE SAYS IS THAT WE NOT END UP FOCUSING ON SYNERGY THROUGH ONE MOVIE MINIDISC WILL PROVIDE THE MOST BIGBUSINESS OPPORTUNITIES FOR THE BIG LONGTERM PAYOFF BUT MR GANIS AS WELL AS EXECUTIVES AT OTHER COMPANIES THINK SUCH PROBLEMS CAN BE OVERCOME AND THEY POINT TO NUMEROUS EXAMPLES TO SHOW WHERE SYNERGY ALREADY HAS MADE A DIFFERENCE FOR EXAMPLE JUST ONE YEAR AFTER ACQUIRING COLUMBIA AND TRISTAR PICTURES SONY OPENED A ONEOFAKIND HIGHDEFINITION FACILITY ON THE STUDIO LOT PACKED WITH STATEOFTHEART CAMERAS PROCESSING EQUIPMENT AND HIGHDEFINITION TECHNOLOGY FROM SONY'S HARDWARE OPERATIONS THE SONY PICTURES HIGH DEFINITION CENTER IS SOMETHING OF A CUTTINGEDGE LABORATORY FOR THE MOVIE MAKERS ON THE SOFTWARE SIDE ONE OF ITS MAIN FUNCTIONS IS TO SERVE AS AN EXPERIMENTAL LABORATORY TO GIVE OUR CREATIVE COMMUNITY AN OPPORTUNITY TO KICK THE TIRES ON THE LATEST FILMMAKING TECHNOLOGY SAYS A SONY SPOKESMAN IN ADDITION TO FILM MAKERS SONY MUSIC WILL PROBABLY USE IT TO MAKE MUSIC VIDEOS AND SONY ELECTRONIC PUBLISHING WILL PROBABLY USE IT TO PRODUCE INTERACTIVE VIDEO GAMES MEANWHILE AT WARNER BROS THE GLOBAL TELEVISIONDISTRIBUTION ARM HELPED THE COMPANY'S HOME BOX OFFICE UNIT LAUNCH ITS LATIN AMERICAN PAYTV SERVICE WARNER BROS INTRODUCED HBO TO A LATIN AMERICAN PARTNER IN THE VENTURE IT ALSO SOLD HBO THE RIGHT TO USE HOURS OF PROGRAMMING FROM THE WARNER LIBRARY IN SIMILAR WAYS WARNER BROS HAS HELPED HBO ENTER HUNGARY AND SINGAPORE AND BOTH WARNER AND HBO ARE WORKING WITH TIME WARNER'S CABLETV OPERATIONS IN AUSTRALIA ANOTHER JAPANESE ELECTRONICS GIANT MATSUSHITA ELECTRIC INDUSTRIAL CO IS FOLLOWING A STRATEGY SIMILAR TO SONY'S MATSUSHITA WHICH BOUGHT MCA INC FOR 66 BILLION IN 1990 IS FOCUSING ITS SYNERGY SEARCH ON ITS UNIVERSAL STUDIO'S OWN EXTRAVAGANT SUMMER MOVIE JURASSIC PARK MATSUSHITA AND ITS PANASONIC CONSUMERELECTRONICS UNIT ARE BETTING THAT JURASSIC PARK BASED ON THE MICHAEL CRICHTON NOVEL ABOUT GENETICALLY ENGINEERED LIVE DINOSAURS THAT GO HAYWIRE MIGHT SPIN OFF A THEMEPARK ATTRACTION VIDEO GAMES AND TVCARTOON SERIES FROM OTHER MCA UNITS MEANWHILE NEWS CORP RUPERT MURDOCH'S FARFLUNG MEDIA EMPIRE IS CONNECTING ITS NEWSGATHERING RESOURCES WORLDWIDE WHICH INCLUDE SOME 3000 REPORTERS AND THE FOX TELEVISION STATIONS AND PROGRAMMING NETWORK THE OPPORTUNITY TO CREATE A WORLDWIDE NEWS GATHERING AND REPORTING SERVICE RESTS WITH OUR ABILITY TO CONNECT SAYS CAROLINE WALL EXECUTIVE VICE PRESIDENT OF CORPORATE DEVELOPMENT AND SALES AND THE COMPANY'S SYNERGY CZAR SHE ADDS FOR OUR COMPANY WHERE THE ENTREPRENEURIAL SPIRIT STILL RUNS HIGH SYNERGY IS VERY ENERGIZING WORK IT FORCES US ALL TO THINK OUTSIDE THE BOX THE BOX BEING THE PRODUCTS THAT WE PRODUCE EVERY DAY IN OUR EXISTING BUSINESSES SOME ENTERTAINMENTINDUSTRY EXECUTIVES CRINGE AT THE USE OF THE WORD SYNERGY WHICH THEY SAY SUGGESTS AN UNNATURAL FORCEFIT OF BUSINESSES AND PEOPLE IT CONNOTES SOMETHING ARTIFICIAL THINGS HAVE TO WORK BECAUSE THEY FEEL RIGHT SAYS MICHAEL P SCHULHOF CHAIRMAN OF SONY USA SONY'S US SUBSIDIARY I'D LOVE TO FIND ANOTHER SYNONYM TIME WARNER WHICH DENIES THAT IT EVER EMBRACED THE NOTION OF SYNERGY PREFERS THE FUZZILY DEFINED TERM INTERSECTION AT NEWS CORP WE PREFER TO CALL IT INTEGRATION SAYS MS WALL ADDING THAT INTEGRATION SUGGESTS MERGING COMPONENTS THAT CREATE TRULY NEW PRODUCTS AS OPPOSED TO JUST MARRYING TWO EXISTING PRODUCTS AND HOPING THE RESULT IS A NEW PRODUCT WHEN SYNERGY FIRST EMERGED AS A CONCEPT AND OPPORTUNITY TWO OR THREE YEARS AGO SHE NOTES THERE INITIALLY WERE UNREALISTIC EXPECTATIONS ABOUT THE RESULT THIS WAS COMPOUNDED BY EVERYONE BELIEVING IT WAS A GOOD THING AND SHOULD BE DONE ON AS MANY LEVELS AND AS OFTEN AS POSSIBLE IT WAS ROMANTICIZED SONY FOR ONE IS CANDID ABOUT THE OBSTACLES IT HAS ENCOUNTERED IN FOSTERING SYNERGY AMONG THE MOST CRITICAL MR SCHULHOF INDICATES HAS BEEN THE ELECTRONIC GROUP'S STRONG SENSE OF DESERVED PRIDE THE ELECTRONICS EMPLOYEES BELIEVE THAT THEY ARE SONY HE SAYS AND THAT PROFITS FROM THEIR EFFORTS PROVIDED THE FINANCIAL MUSCLE FOR THE COMPANY'S MULTIBILLIONDOLLAR FORAY INTO ENTERTAINMENT SOFTWARE THUS THERE IS A CERTAIN AMOUNT OF RESENTMENT MR SCHULHOF SAYS THE HARDWARE EMPLOYEES HAVE ALSO BEEN RATTLED BY THE HOLLYWOOD CULTURE PARTICULARLY ITS HEAVY SPENDING AND RICH SALARY STRUCTURE THE ELECTRONICS GROUP READS THE GOSSIP ABOUT THE PARTIES AND SCHWARZENEGGER'S AND TOM CRUISE'S SALARIES MR SCHULHOF SAYS HE NOTES HOWEVER THAT HE HAS BEEN CAREFUL TO EXPLAIN TO THE GROUP THAT SPENDING LEVELS ARE APPROPRIATE FOR THE INDUSTRIES AND THAT BENEFIT PACKAGES ARE CONSISTENT ACROSS SONY'S BUSINESSES BY AND LARGE THE ELECTRONICS GROUP IS TAKEN CARE OF MR SCHULHOF SAYS THAT WAS IMPORTANT TO ME DESPITE HIS EFFORTS HOWEVER SOME PROBLEMS REMAIN FOR EXAMPLE SONY CONTINUES TO SUFFER CONFUSION OVER ITS CORPORATE NAME IN THE US CURRENTLY SONY CORP OF AMERICA IS THE NAME FOR THE ELECTRONICS GROUP WHILE THE MUSIC OPERATION IS CALLED SONY MUSIC AND THE FILM OPERATIONS SONY PICTURES MR SCHULHOF WOULD LIKE TO RENAME THE ELECTRONICS OPERATIONS SONY ELECTRONICS GROUP BUT INDICATES THAT HE HAS TO MOVE SLOWLY BECAUSE SUCH A CHANGE MIGHT UPSET THAT SIDE OF THE BUSINESS MR SCHULHOF IS STILL TRYING TO OVERCOME RESISTANCE IN THE ELECTRONICS GROUP TO HAVING PERFORMERS UNDER CONTRACT WITH SONY MUSIC ENDORSE ITS PRODUCTS THEY HAVE NEVER USED ARTIST ENDORSEMENTS AND HAVE FELT THAT THE ONLY NAME THAT SHOULD BE ASSOCIATED WITH THEIR PRODUCTS IS SONY MR SCHULHOF SAYS THEY ARE NERVOUS THEY HAVE NO EXPERIENCE IN THE LAST 30 YEARS WITH ARTISTS THEY BELIEVE IT MIGHT TAKE AWAY FROM RECOGNITION OF THE PRODUCT AND IT AFFECTS THEIR SENSE OF PRIDE BUT SOME PERFORMERS WANTING TO EXTEND THEIR PUBLIC ASSOCIATION WITH SONY HAVE ACTUALLY ASKED TO DO SONY ADVERTISEMENTS IN JAPAN BILLY JOEL AND MICHAEL JACKSON AMONG SONY MUSIC'S BIGGEST STARS HAVE ALREADY APPEARED IN SONY ADS SO FAR HOWEVER THE US ELECTRONICS GROUP IS STILL BALKING MR SCHULHOF SAYS IT WILL HAPPEN I'M PUSHING BECAUSE IT'S A UNIQUE OPPORTUNITY HE SAYS I'M SURE IT WILL COME WHENEVER I SEE AN OPPORTUNITY I JUMP DOWN PEOPLE'S THROATS TO DO IT THE ELECTRONIC GROUP HAS AGREED TO USE SONY MUSIC TO DEMONSTRATE ITS ELECTRONICS PRODUCTS AT TRADE SHOWS AT ONE POINT THE GROUP WAS USING A TAPE OF MURPHY BROWN WHICH IS PRODUCED BY RIVAL TIME WARNER TO DEMONSTRATE PROFESSIONAL VIDEO EQUIPMENT THROUGH THE OPPORTUNITIES MEETINGS THE COMPANY HAS NOW ARRANGED FOR THE GROUP TO USE CLIPS FROM MARRIED WITH CHILDREN AND DESIGNING WOMEN BOTH OF WHICH ARE PRODUCED BY THE TELEVISION UNIT OF SONY'S COLUMBIA PICTURES SAYS MR SCHULHOF I THINK WE ARE MAKING HEADWAY IN THE BEGINNING THERE WAS VERY LITTLE CONTACT BETWEEN THE GROUPS I TRY TO MAKE SURE THOSE MEETINGS TAKE PLACE NOW ALL OF THE NEGATIVES WE'VE OVERCOME MORE OR LESS WE PUT OUR OWN ELECTRONICS PRODUCTS IN FILMS THE ELECTRONICS GROUP NOW USES SONY SOFTWARE IN DEMONSTRATIONS OF EQUIPMENT ON THE MUSIC SIDE WE USE SONY PROFESSIONAL RECORDING PRODUCTS WITH ARTISTS ALL THE TIME MR ROBERTS IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9303260082 930326 MARKETING BRIEF NOTED NEWSPAPERS CALIFORNIA'S ORANGE COUNTY REGISTER WILL HALT PUBLICATION OF ITS AFTERNOON EDITION ON APRIL 1 SALES HAD FALLEN TO 52000 ISSUES A DAY LAST MONTH FROM 108000 IN 1980 DURING THE SAME PERIOD SALES OF THE REGISTER'S MORNING PAPER WHICH COMPETES WITH THE LOS ANGELES TIMES'S ORANGE COUNTY EDITION INCREASED TO NEARLY 300000 DAILY FROM 113000 THE REGISTER A UNIT OF FREEDOM NEWSPAPERS INC SAID ABOUT 50 JOBS IN THE CIRCULATION DEPARTMENT WILL BE ELIMINATED OTHER WORKERS INVOLVED IN PRODUCING THE AFTERNOON PAPER WILL BE REASSIGNED 9303260081 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT HOLLYWORLD CHEAP THRILLS THEMEPARK OPERATORS HAVE BIG PLANS FOR SMALL PROJECTS BY DAVID J JEFFERSON WHEN LANDMARK ENTERTAINMENT GROUP WAS DESIGNING LIFESIZE CHARACTERS FOR THE SANRIO PUROLAND THEME PARK NEAR TOKYO IT GAVE ITS FANCIFUL TROLLS STANDARD AMERICAN CARTOON HANDS THREE FINGERS AND ONE THUMB THE JAPANESE CLIENTS AT SANRIO CO WERE NOT AMUSED THEY SAID YOU CAN'T HAVE THREE FINGERS' RECALLS GARY GODDARD PRESIDENT OF LANDMARK WHICH IS IN NORTH HOLLYWOOD CALIF AND DESIGNS THEMEPARK ATTRACTIONS OVER THERE A MISSING FINGER MEANS THE YAKUZA THE JAPANESE MOB SO WE HAD TO RESCULPT THE CHARACTERS SUCH ARE THE PITFALLS OF THE INTERNATIONAL THEMEPARK BUSINESS SOMETHING MORE AMERICAN COMPANIES ARE DISCOVERING AS THEY TAKE THEIR EXPERTISE ABROAD IN A GAME OF FOLLOWTHELEADER THAT BEGAN AFTER WALT DISNEY CO OPENED TOKYO DISNEYLAND IN 1983 AMERICAN DESIGNERS OF PARKS AND ATTRACTIONS HAVE SHIFTED THEIR ATTENTION TO OVERSEAS MARKETS TO SATISFY THE INCREASED DEMAND FOR LEISURE ENTERTAINMENT BUT THEIR SUCCESS HAS BEEN MIXED SECONDGUESSING THE TASTES OF FOREIGN AUDIENCES THESE COMPANIES HAVE DISCOVERED CAN BE A REAL CRAP SHOOT DISNEY'S WELL PUBLICIZED TRIBULATIONS AT ITS 4 BILLION THEME PARK AND RESORT IN FRANCE COUPLED WITH SOME DISAPPOINTMENTS IN JAPAN AND THE WORLDWIDE ECONOMIC DOWNTURN HAVE CAUSED THEMEPARK BUILDERS TO RETHINK THEIR OVERSEAS STRATEGIES BECAUSE OF EURO DISNEY'S WOES DESIGNERS ARE FOCUSING MOST OF THEIR ATTENTION ON ASIA MOREOVER THEY ARE FORGOING PLANS FOR BILLIONDOLLAR AMERICANSTYLE PARKS IN FAVOR OF SMALLER PROJECTS THAT EMPLOY LOTS OF HIGHTECH GIMMICKRY AT A FRACTION OF THE COST I HAVE TO THINK EURO DISNEY IS SCARING EVERYBODY SAYS STAN KINSEY CHIEF EXECUTIVE OF IWERKS ENTERTAINMENT A BURBANK CALIF FIRM FORMED BY DISNEY DEFECTORS IWERKS IS PLANNING A STRING OF 20 MILLION 60000SQUAREFOOT CINETROPOLIS ENTERTAINMENT CENTERS FEATURING SIMULATORS AND HIGHDEFINITION FILM ATTRACTIONS THAT IT HOPES WILL COMPETE FOR THEMEPARK DOLLARS ABROAD EVEN THOUGH EURO DISNEY IS SUCCEEDING IT'S NOT A GRAND SLAM SAYS MR KINSEY AND THAT MEANS ALL THE INTERNATIONAL GROUPS HAVE TO BE THINKING TWICE ABOUT ANY MEGAPARKS WHILE DISNEY CHAIRMAN MICHAEL D EISNER BRISTLES AT THE SUGGESTION THAT EURO DISNEY ISN'T PERFORMING AS PLANNED I DON'T THINK FOR A SECOND IT WON'T WORK HE SAYS HE'S THE FIRST TO ADMIT THAT BUILDING THEME PARKS OVERSEAS IS A VERY VERY RISKY BUSINESS OTHER ATTEMPTS TO EXPORT THE THEMEPARK CONCEPT OUTSIDE THE US HAVE BEEN PRETTY DISASTROUS SAYS MR EISNER PEOPLE IN JAPAN TRIED TO COPY TOKYO DISNEYLAND AND IT DIDN'T WORK INDEED A SPACETHEME PARK BUILT BY NIPPON STEEL AND SANRIO PUROLAND BOTH HUGE PROJECTS COSTING HUNDREDS OF MILLIONS OF DOLLARS PROVED FINANCIAL DISAPPOINTMENTS AGGRAVATED BY THE RECESSION THE MARKET FOR GIANT THEME PARKS IN JAPAN HAS NOW DRIED UP THE JAPANESE PLANNING BUBBLE BURST AND NOW NOBODY'S DOING ANYTHING SAYS HARRISON PRICE WHOSE LOS ANGELES THEMEPARK CONSULTING COMPANY WAS WORKING ON SEVERAL BIG JAPANESE PROJECTS THAT HAVE TURNED TO DUST DISNEY'S PLANS FOR A SECOND THEME PARK IN TOKYO HAVE YET TO GEL ORIENTAL LAND CO WHICH OWNS 51 OF TOKYO DISNEYLAND TURNED DOWN A PROPOSAL FOR A MOVIESTUDIO PARK SIMILAR TO THE DISNEYMGM STUDIOS IN FLORIDA AND NOW DISNEY IS TRYING TO SELL ORIENTAL LAND ON AN OCEANTHEME PARK SIMILAR TO THE NEVERREALIZED DISNEY SEA PROJECT IT HAD LOBBIED TO BUILD IN LONG BEACH CALIF LIKEWISE DISNEY RIVAL MCA INC OWNER OF THE UNIVERSAL STUDIOS PARKS IN HOLLYWOOD AND FLORIDA HASN'T PROCEEDED WITH A LONGPROMISED SEQUEL IN EITHER JAPAN OR EUROPE RON BENSION HEAD OF MCA'S RECREATION SERVICES GROUP INSISTS THAT A JAPANESE THEME PARK IS OF HIGHEST PRIORITY FOR US AND ONE WHICH WE ARE ACTIVELY PURSUING HE SAYS THAT OSAKA HOME TO MCA PARENT MATSUSHITA ELECTRIC INDUSTRIAL CO IS ONE POSSIBLE SITE AND THAT MCA WILL HAVE AT LEAST ONE FOREIGN PARK UP AND RUNNING BY THE END OF THE DECADE MEANTIME MCA IS MOVING FORWARD WITH A FIVEACRE ENTERTAINMENT ZONE AT A MARINA RESORT DEVELOPMENT BEING BUILT BY A MATSUSHITA AFFILIATE NEAR OSAKA MR BENSION IS VAGUE ON THE DETAILS OF THE PROJECT WHICH IS PART OF THE 162ACRE MARINA CITY COMPLEX OF CONDOMINIUMS HOTELS AND BOAT SLIPS NOW RISING ON AN ISLAND LANDFILL OFF THE WAKAYAMA COAST THAT IS SET TO OPEN NEXT YEAR BUT HE DOES SAY THAT THE PROJECT ISN'T A MOVIEBASED PARK AND THAT IT WILL FEATURE MINIATTRACTIONS AND RECREATIONAL CENTERS WHAT'S MOST TELLING ABOUT THE MCA MARINA PROJECT IS ITS PRICE TAG AT AROUND 80 MILLION IT WILL COST ROUGHLY THE SAME AMOUNT AS THE NEW SPLASH MOUNTAIN FLUME RIDE AT WALT DISNEY WORLD IN FLORIDA THE QUEST FOR SUCH LOWERCOST PARKS IS A COMMON ONE AMONG THEMEPARK BUILDERS FOR INSTANCE ENTERTAINMENT CENTERS THAT COMBINE COMPUTERIZED SIMULATOR RIDES ALONG THE LINES OF DISNEY'S STAR TOURS WITH ELABORATE VIDEO ARCADES MOVIE THEATERS RESTAURANTS AND RETAILING ARE SPRINGING UP IN JAPAN THE ATTRACTIVENESS OF THESE SMALLER PROJECTS IS OBVIOUS LAND IN MANY ASIAN COUNTRIES IS AT A PREMIUM AND SIMULATOR ATTRACTIONS ARE A LOT LESS EXPENSIVE TO BUILD THAN TRADITIONAL IRON RIDES A ROLLER COASTER COSTS 4 MILLION TO 6 MILLION TO BUILD IT TAKES UP A LOT OF SPACE AND THERE ARE A LOT OF OPERATING COSTS SAYS ROY AARON CHIEF EXECUTIVE OFFICER OF SHOWSCAN CORP A LOS ANGELESAREA MAKER OF SIMULATOR RIDES BUT WITH A 1 MILLION SIMULATOR YOU CAN CHANGE THE PROGRAMMING TO HAVE DIFFERENT EXPERIENCES YOU CAN PUT IT INTO FAR LESS SPACE AND THE INSURANCE ON THE RIDE IS NEGLIGIBLE COMPARED WITH A TRULY RISKY ROLLERCOASTER EXPERIENCE SIMULATOR FILMS CAN ALSO BE TAILORED TO LOCAL AUDIENCES SO THAT RIDERS IN EUROPE CAN SKI THE ALPS WHILE THOSE IN JAPAN CAN SWOOSH DOWN MT FUJI JAPAN'S NAMCO LTD CREATOR OF HIGHEND VIDEO GAMES LAST YEAR OPENED A SOUPEDUP VIDEO ARCADE/AMUSEMENT PARK IN TOKYO CALLED WONDER EGGS THAT HAS ALREADY DRAWN CLOSE TO ONE MILLION VISITORS CUSTOMERS PLUNK EGGSHAPED TOKENS INTO SMALL SIMULATORS LINKED BY COMPUTER NETWORK AND HAVE SPACE BATTLES WITH ONE ANOTHER OR SIT IN MAZDA MIATAS FOR SIMULATED RACES PLANS ARE AFOOT IN ASIA FOR A STRING OF VIRTUAL REALITY PARKS WHERE VISITORS WILL CAVORT AMID THREEDIMENSIONAL IMAGES GENERATED BY COMPUTER NOT UNLIKE THE HOLODECK IN THE POPULAR TV SERIES STAR TREK THE NEXT GENERATION WITH PRICE TAGS UNDER 40 MILLION THESE PARKS WILL PACK ALL THE THRILLS OF A DISNEYLAND IN ABOUT ONETENTH THE SPACE PROMOTERS CLAIM THE FIRST VIRTUALREALITY PARK IS SET TO OPEN IN OSAKA NEXT YEAR AND A SINGAPORE VENTURE WYWYST CREATIVE LIFESTYLE PLANS TO OPEN 30 SUCH CENTERS BEGINNING IN 1994 IF YOU'RE GOING TO PUT 500 MILLION IN A THEMEPARK DIRECTION WOULDN'T YOU RATHER HAVE A STRING OF 20 MILLION HIGHTECH PARKS EACH PULLING IN A MILLION PEOPLE A YEAR THAN TO HAVE ONE BIG PARK IN ONE AREA ASKS IWERKS'S MR KINSEY FOREIGN INVESTORS ARE ALSO KEEPING A WATCHFUL EYE ON THE MALL OF AMERICA THE BLOOMINGTON MINN HYPERMALL THAT HAS THE 70 MILLION KNOTT'S CAMP SNOOPY INDOOR THEME PARK AT ITS CORE THEY'RE SENDING ENTIRE TEAMS FROM ASIA TO GO THROUGH THAT MALL SAYS MR PRICE THE LOS ANGELES THEMEPARK CONSULTANT NOT EVERYONE IS CONVINCED THAT THE MALL OF AMERICA APPROACH IS THE FUTURE OF THEME PARKS HOWEVER I'M NOT A GIANT ADVOCATE OF RETAIL AND ENTERTAINMENT BEING TIED TOGETHER SAYS DISNEY'S MR EISNER I THINK GOOD RETAILING IS ENTERTAINING BUT I'M NOT SURE IN THE LONG RUN THAT PUTTING JUGGLERS OUTSIDE OF BLOOMINGDALE'S IS THE ANSWER NOR DOES MR EISNER HAVE ANY PLANS TO FOLLOW THE TREND TOWARD SMALLER THEME PARKS WE'RE NOT GOING TO DO A REGIONAL PARK IN NICE HE SAYS TRIALANDERROR SEEMS TO BE THE RULE OF THUMB IN THE OVERSEAS THEMEPARK BUSINESS AND NO ONE REALIZES THAT MORE THAN DISNEY WE PUT IN A JAPANESE RESTAURANT AT TOKYO DISNEYLAND AND THE PEOPLE GOT ANNOYED SAYS MR EISNER THE PEOPLE WANT POPCORN NOT NOODLES AT TOKYO DISNEYLAND THOUGH AMUSEMENT PARKS HAD THEIR START IN EUROPE THE FAMOUS TIVOLI GARDENS IN COPENHAGEN WAS BUILT IN 1843 THE MODERNDAY THEME PARK IS TRULY AN AMERICAN EXPORT EVER SINCE A PETULANT NIKITA KHRUSHCHEV VOWED TO BUILD HIS OWN DISNEYLAND IN RUSSIA WHEN HE WAS DENIED A VISIT TO WALT DISNEY'S MAGIC KINGDOM IN 1960 FOREIGNERS HAVE WANTED THEIR OWN AMERICANSTYLE FANTASYLANDS HOT DOGS AND ALL EVEN RUSSIA MAY FINALLY GET ITS AMERICAN PARK TOO WITH ENTREPRENEURS THERE NOW BUSILY TRYING TO DRUM UP JOINT VENTURES WITH AMERICAN FIRMS THEY WANT TO SEE THE WESTERN WAY OF LIFE ESPECIALLY THE AMERICAN WAY OF LIFE SAYS PHILIP TURNER VICE PRESIDENT OF DUELL CORP LOS ANGELES WHICH DESIGNED MOST OF THE SIX FLAGS PARKS IN THE US AND HAS CONSULTED ON SEVERAL OVERSEAS PARKS INCLUDING THE SUCCESSFUL DUNAI FANTASI PARK IN INDONESIA AND TWO PROJECTS CURRENTLY UNDER CONSTRUCTION IN SHANGHAI CHINA IN JAKARTA THE COWBOYS AND INDIANS SECTION IS THE MOST SUCCESSFUL SECTION OF THE ENTIRE PARK HE SAYS THE MOVIE INDUSTRY HAS WHETTED THE APPETITES OF INTERNATIONAL AUDIENCES FOR AMERICANSTYLE AMUSEMENTS THERE'S A UNIVERSAL HUNGER FOR HOLLYWOOD THAT WE FIND EVERYWHERE SAYS ALAN FETZER CHIEF FINANCIAL OFFICER OF BOSS FILM CORP A MARINA DEL REY CALIF SPECIALEFFECTS COMPANY THAT WORKED ON ALIEN 3 AND GHOSTBUSTERS AND HAS NOW TURNED TO PRODUCING FILMS FOR AMUSEMENT PARKS BOSS'S FIRST ATTRACTION FOR A PARK IN NAGASAKI IS A FILM PROJECTED ON A 360DEGREE CIRCULAR SCREEN THAT STARS AN ECOLOGICALLY MINDED FLYING ROBOTIC CAT THE COMPANY ALSO PRODUCED A SIMULATOR FILM FOR LUCKY GOLD STAR'S PAVILION AT EXPO '93 IN SEOUL CALLED JOURNEY TO TECHNOPIA AN ELABORATE REFRIGERATOR SHOW FOR THE CONGLOMERATE'S PRODUCTS BUT WHAT PLAYS IN ASIA WON'T NECESSARILY BE A HIT IN SAY PARIS THE PROBLEMS DISNEY HAS ENCOUNTERED WITH ITS 49OWNED EURO DISNEY PROJECT SHOW JUST HOW FICKLE OVERSEAS AUDIENCES CAN BE LURING XENOPHOBIC PARISIANS TO WHAT ONE MEMBER OF THE INTELLIGENTSIA LABELED A CULTURAL CHERNOBYL IS JUST ONE OF THE HURDLES ONCE INSIDE THE EURO DISNEY PARK EUROPEANS POSE AN ENTIRELY DIFFERENT CHALLENGE EVERYONE ARRIVES AT 930 LEAVES AT 530 AND THEY WANT LUNCH AT 1230 MR EISNER NOTES THAT HAS MEANT HUGE CROWDS AND LOTS OF SURLY PATRONS AT THE PARK'S RESTAURANTS DURING LUNCH TIME AND DISNEY'S SMILING CAST MEMBERS HAVE HAD TO ENGAGE IN SOME BEHAVIOR MODIFICATION TO TEACH THE GUESTS THAT THEY CAN EAT AT 11 OR 2 SAYS MR EISNER EUROPEAN AUDIENCES TEND TO WANT MORE LOCAL CONTENT IN THEIR PARKS WHILE THE JAPANESE ARE ALMOST MANIACALLY FOND OF AMERICAN POP CULTUREORIENTAL LAND CO WANTED NOTHING MORE THAN TO AIRLIFT WALT DISNEY WORLD TO TOKYOEUROPEANS ARE QUITE CONTENT WITH THEIR OWN CULTURE THANK YOU VERY MUCH TO THEM DETAIL AND CRAFTSMANSHIP IN A THEME PARK ARE MORE IMPORTANT THAN HEARTSTOPPING THRILL RIDES IN EUROPE IT'S MORE IMPORTANT TO HAVE SOMETHING BE AUTHENTIC THAN TO BE RECONSTRUCTED FROM FIBERGLASS SAYS KAREN OERTLEY PUBLISHER OF AMUSEMENT BUSINESS A NASHVILLE TENN TRADE PUBLICATION IT DOESN'T HAVE TO BE OLD BUT IT SHOULD BE MADE OF WOOD THAT'S PART OF THE REASON DISNEY'S IMAGINEERS WERE SUCH FUSSBUDGETS WHEN IT CAME TO THE ARCHITECTURE AND LANDSCAPING OF EURO DISNEY MCA'S MR BENSION SAYS THAT IF HIS COMPANY EVER DECIDES TO BUILD A UNIVERSAL STUDIOS THEME PARK IN FRANCE THE COMPANY WILL MOST CERTAINLY CONSIDER DRAWING HEAVILY ON THE FRENCH CINEMA THEY HAVE A TREMENDOUS HISTORY IN CINEMA AND I THINK THAT IF YOU WENT INTO EUROPE OR FRANCE THE OPPORTUNITY TO UTILIZE FRENCH PRODUCT SHOULD BE EXAMINED THOROUGHLY WE'RE FLEXIBLE IN THAT REGARD HE SAYS WE HAVE WATCHED DISNEY'S EXPERIENCE VERY CAREFULLY AND WE FEEL WE HAVE LEARNED A LOT HE ADDS MR JEFFERSON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9303260080 930326 BUSINESS BRIEF AMERICAN PRESIDENT COS VENTURE WITH EAST ASIATIC FOR SHIP LINES IS SCRAPPED AMERICAN PRESIDENT COS SAID IT TERMINATED A PLANNED JOINT VENTURE WITH EAST ASIATIC CO TO DEVELOP SHIPPING LINES BETWEEN EUROPE AND ASIA THE OAKLAND CALIF COMPANY A TRANSPORATION AND FREIGHTHAULING CONCERN CITED WEAKNESS IN SHIPPING TRADE BETWEEN EUROPE AND ASIA WHICH HAS BEEN HURT BY THE SLUGGISH JAPANESE AND EUROPEAN ECONOMIES AMERICAN PRESIDENT ALSO SAID IT DROPPED PLANS TO HAVE NEW CONTAINER SHIPS BUILT FOR THE VENTURE EAST ASIATIC IS BASED IN COPENHAGEN DENMARK AMERICAN PRESIDENT HAD EXPECTED TO INVEST ABOUT 100 MILLION IN THE PROJECT A SPOKESMAN SAID DROPPING THE PLANS WON'T HAVE A MATERIAL ADVERSE IMPACT ON THE COMPANY'S RESULTS 9303260079 930326 ENVIRONMENTALISTS VIE FOR RIGHT TO POLLUTE BY JEFFREY TAYLOR AND DAVE KANSAS STAFF REPORTERS OF THE WALL STREET JOURNAL A FIRSTEVER AUCTION OF RIGHTS TO POLLUTE THE ENVIRONMENT IS DRAWING BIDS NOT JUST FROM BIG UTILITIES BUT FROM AT LEAST ONE ENVIRONMENTAL GROUP MOST OF THE 150 BIDS FOR GOVERNMENTISSUED PERMITS TO EMIT A TOTAL OF ABOUT 270000 TONS OF SULFUR DIOXIDE THE CHEMICAL THAT CAUSES ACID RAIN ARE COMING FROM POWER UTILITIES THAT NEED THEM BUT A BID HAS ALSO BEEN SUBMITTED BY THE NATIONAL HEALTHY AIR LICENSE EXCHANGE A CLEVELANDBASED NONPROFIT ENVIRONMENTAL GROUP DAVID WEBSTER PRESIDENT OF THE GROUP SAID IT SUBMITTED BIDS FOR 1100 PERMITS EACH OF WHICH WOULD ALLOW THE GROUP TO EMIT ONE TON OF SULFUR DIOXIDE DURING THE COURSE OF A YEAR BUT REST EASY MR WEBSTER SAID THE GROUP WON'T EXERCISE ITS RIGHT INSTEAD IT WILL RETIRE THE PERMITS IF IT WINS THEM TO KEEP THEM OUT OF THE HANDS OF UTILITIES HISTORICALLY ENVIRONMENTAL GROUPS HAVE BEEN ABLE ONLY TO LITIGATE OR LOBBY SAYS MR WEBSTER BUT NOW WE CAN ACTUALLY BUY POLLUTION RIGHTS AND LET THEM EXPIRE UNUSED THEREBY KEEPING TONS OF POLLUTION FROM BEING RELEASED INTO THE ATMOSPHERE WE'VE GOTTEN CONTRIBUTIONS TO DO THIS FROM PEOPLE WHO NEVER THOUGHT ABOUT GETTING INVOLVED IN ENVIRONMENTAL CAUSES BEFORE THE AUCTION BEING CONDUCTED BY THE CHICAGO BOARD OF TRADE ON BEHALF OF THE ENVIRONMENTAL PROTECTION AGENCY IS THE NEXT STEP IN A MASSIVE FEDERAL PROGRAM TO FORCE POWERGENERATING COMPANIES TO CUT THEIR OUTPUT OF SULFUR DIOXIDE IN HALF BY THE YEAR 2000 UTILITIES HAVE ALREADY RECEIVED FROM THE EPA PERMITS EACH OF WHICH ALLOWS THE DISCHARGE OF ONE TON OF SULFUR DIOXIDE PER YEAR TO BE USED DURING THE FIRST PHASE OF THE PROGRAM BETWEEN 1995 AND 2000 COMPANIES CAN EITHER USE THEIR PERMITS TO COMPLY WITH CLEANAIR LAWS OR THEY CAN CLEAN UP THEIR OPERATIONS AND SELL THEIR UNUSED PERMITS TO OTHER UTILITIES EXISTING PERMITS ARE ALREADY BEING BOUGHT AND SOLD AMONG UTILITIES BUT THE MARKET REMAINS CLOAKED IN SECRECY NOT ONLY WILL THE AUCTION PROVIDE ADDITIONAL PERMITS BUT IT WILL ESTABLISH A CONTINUING PUBLIC MARKET FOR THE TRADING OF THE NEW PERMITS AS WELL AS THOSE PREVIOUSLY ISSUED IN EFFECT THE AUCTION TURNS THE RIGHT TO POLLUTE INTO A COMMODITY TO BE TRADED JUST LIKE GRAIN OR PORK BELLIES NOTHING LIKE THIS HAS EVER BEEN DONE BEFORE AT THE BOARD OF TRADE OR ANY OTHER EXCHANGE SAYS RICHARD SANDOR A CBOT DIRECTOR AND PRESIDENT OF CENTRE FINANCIAL PRODUCTS A FIRM THAT ACTS AS A BROKER IN POLLUTIONRIGHTS TRADES THIS IS THE FIRST REAL ATTEMPT AT PRICING THE QUALITY OF AIR I REALLY THINK IT IS ONE OF THE MOST NOVEL AND CREATIVE ATTEMPTS TO DEAL WITH ENVIRONMENTAL PROBLEMS IN THE 20TH CENTURY EACH MARCH THE EPA WILL TURN OVER ADDITIONAL POLLUTION ALLOWANCES TO THE CBOT TO BE SOLD TO THE HIGHEST BIDDERS THE DEADLINE FOR SUBMITTING BIDS IN THE FIRST ANNUAL ACTION WAS TUESDAY AND THE 150 BIDS THE EXCHANGE RECEIVED EXCEEDED EXPECTATIONS THE CBOT WILL RELEASE THE NAMES OF SUCCESSFUL BIDDERS NEXT WEEK ALTHOUGH ESTIMATES OF WHAT A SINGLE ONETON ALLOWANCE WILL SELL FOR RANGES AS HIGH AS 350 MR SANDOR SAYS HE THINKS THAT'S TOO HIGH I THINK YOU'LL SEE WINNING BIDS IN THE 150TO175PERALLOWANCE RANGE HE SAYS IN THE PRIVATE TRADING THAT HAS TAKEN PLACE SO FAR ILLINOIS POWER CO HAS PURCHASED EMISSIONS PERMITS FOR BETWEEN 200 AND 250 EACH ILLINOIS POWER IS ONE OF THE 110 UTILITIES AROUND THE US THAT IS AFFECTED BY THE FIRST PHASE OF THE SULFURDIOXIDEREDUCTION PROGRAM THE ILLINOIS POWER PLANTS THAT ARE AFFECTED BY THE PROGRAM'S FIRST PHASE SPEW ABOUT 240000 TONS OF SULFUR DIOXIDE A YEAR SAYS SCOTT HARRISON ENVIRONMENTAL TECHNICAL SPECIALIST FOR THE COMPANY YET WHEN THE RESTRICTIONS GO INTO EFFECT IN 1995 ILLINOIS POWER WILL GET ONLY 171000 ONETON ALLOWANCES FROM THE EPA UNLIKE SOME OTHER UTILITIES WHICH ALREADY HAVE SWITCHED TO LOWSULFUR COAL OR INSTALLED SMOKESTACK SCRUBBERS TO CUT POLLUTION ILLINOIS POWER INTENDS TO CONTINUE TO POLLUTE AT CURRENT OR HIGHER LEVELS AFTER 1995 MR HARRISON SAYS SO THE DECATUR ILL UTILITY IS BUYING MORE ALLOWANCES IN THE CBOT AUCTION IT BID FOR 5000 OF THEM THE COMPANY HAS ALREADY PURCHASED THE REST OF THE 75000 TO 125000 ALLOWANCES IT WILL NEED IN 1995 FROM OTHER UTILITIES MR HARRISON SAYS IN THE YEAR 2000 WHEN THE MOST STRINGENT POLLUTION CONTROLS GO INTO EFFECT ILLINOIS POWER WILL INSTALL SCRUBBERS HE SAYS THE CBOT AUCTION IS CREATING A NEW LINE OF BUSINESS FOR SOME SECURITIES FIRMS PETER KARPEN DIRECTOR OF FIRST BOSTON CORP IN NEW YORK SAYS HIS FIRM AND OTHERS ARE INTERESTED IN ACTING AS BROKERS IN CBOT POLLUTIONRIGHTS AUCTIONS AND ENLISTING UTILITIES AS THEIR CLIENTS MR KARPEN PREDICTS THAT A SECONDARY MARKET IN POLLUTION ALLOWANCES WILL DEVELOP POSSIBLY AS SOON AS NEXT MONTH AFTER COMPLETION OF THE FIRST CBOT AUCTION IN THE BOND MARKET HE SAYS THERE'S A PRIMARY MARKET WHERE CORPORATIONS BRING NEW ISSUES AND INVESTMENT BANKS THAT BUY THEM ARE THEN FREE TO TRADE AND RESELL THEM IN A SECONDARY MARKET I SUSPECT THERE ARE PROBABLY SOME FIRMS THAT WILL DO THE SAME WITH THESE PEOPLE FAMILIAR WITH THE CBOT AUCTION SAY MR SANDOR'S FIRM CENTRE FINANCIAL PRODUCTS SUBMITTED A LARGE BID IN THE AUCTION ACTING AS A BROKER ON BEHALF OF AT LEAST ONE POWERGENERATING COMPANY MR SANDOR WON'T DISCUSS THE TRANSACTION CITING CLIENT CONFIDENTIALITY NOT EVERY UTILITY IS TRYING TO ACQUIRE ALLOWANCES OR SELL THEM AT THE CBOT'S AUCTION HOWEVER NORTHEAST UTILITIES OF HARTFORD CONN ANNOUNCED IT WOULD DONATE 10000 OF ITS 140000 ANNUAL ALLOWANCES TO THE AMERICAN LUNG ASSOCIATION THE ASSOCIATION PLANS TO RETIRE THEM MANY ENVIRONMENTAL GROUPS SUCH AS THE ENVIRONMENTAL DEFENSE FUND AND MR WEBSTER'S CLEVELANDBASED GROUP SUPPORT MARKETBASED SYSTEMS OF POLLUTION CONTROL BUT SOME LOCAL ENVIRONMENTAL ADVOCATES EXPRESS CONCERN THAT ALTHOUGH THE SULFURDIOXIDE PROGRAM WILL REDUCE POLLUTION ON A NATIONAL BASIS IT WON'T PROTECT SOME LOCAL REGIONS THAT ARE PLAGUED BY ACID RAIN THE CONTROVERSIAL ASPECT OF SELLING THE RIGHT TO POLLUTE EMERGED IN A LAWSUIT FILED IN WASHINGTON DC FEDERAL COURT LAST WEEK THE FIGHT STEMMED FROM LONG ISLAND LIGHTING CO'S DECISION TO SELL SOME OF ITS ALLOWANCES TO EMIT ABOUT 50000 TONS OF SULFUR DIOXIDE PER YEAR DURING THE FIRST PHASE OF THE EMISSIONSREDUCTION PROGRAM TO A COMPANY CALLED AMAX ENERGY INC AMAX ANNOUNCED PLANS TO SELL THE CREDITS TO OTHER UTILITIES THE ATTORNEY GENERAL OF NEW YORK AND STATE ENVIRONMENTAL OFFICIALS FILED SUIT AGAINST THE EPA SEEKING ASSURANCES THAT THE STATE'S ACIDRAINPLAGUED UPSTATE REGIONS WILL BE PROTECTED UNDER THE PROGRAM NEW YORK ENVIRONMENTAL CONSERVATION COMMISSIONER THOMAS C JORLING EXPRESSED CONCERN THAT THE SALE OF ALLOWANCES TO UTILITIES IN THE INDUSTRIAL GREAT LAKES AREA COULD PRODUCE ACID RAIN AND DAMAGE NEW YORK'S ADIRONDACK REGION THE CHICAGO BOARD OF TRADE ISN'T ALLOWED TO CHARGE ANY FEES TO RUN ITS POLLUTIONALLOWANCE AUCTIONS BUT WITHIN A FEW MONTHS THE CBOT HOPES TO LAUNCH FUTURES CONTRACTS ON THE ALLOWANCES THE EXCHANGE WILL BE ALLOWED TO CHARGE TRADING FEES FOR THESE CONTRACTS ONCE THE FUTURES CONTRACTS ARE LAUNCHED SECURITIES FIRMS ARE EXPECTED TO DIVE INTO THE FLEDGLING POLLUTIONRIGHTS MARKET IN A BIG WAY THE NEXT ROLE FOR US WILL BE WHEN THE FUTURES CONTRACTS COME ON FIRST BOSTON'S MR KARPEN SAYS THEN I EXPECT WE MAY BE INVOLVED IN A BROKERING FUNCTION 9303260078 930326 ECONOMY SENATE PANEL APPROVES FUNDING FOR S&L BAILOUT WASHINGTON THE SENATE BANKING COMMITTEE VOTED 153 TO PROVIDE 45 BILLION SOUGHT BY THE CLINTON ADMINISTRATION TO COMPLETE THE FEDERAL SAVINGSANDLOAN BAILOUT THE FUNDS HOWEVER ARE TIED TO A SYSTEM OF CHECKPOINTS UNDER WHICH TREASURY SECRETARY LLOYD BENTSEN WOULD HAVE TO CERTIFY THAT PROMISED REFORMS OF THE FEDERAL CLEANUP AGENCIES HAD IN FACT TAKEN PLACE THE AMENDMENT TO THE FUNDING BILL WAS IN RESPONSE TO DEMANDS OF COMMITTEE MEMBERS PARTICULARLY SEVERAL FRESHMEN WOMEN WHO HAVE BEEN CRITICAL OF THE EFFICIENCY OF THE RESOLUTION TRUST CORP THE CLEANUP AGENCY IN CHARGE OF SELLING OFF THE ASSETS OF FAILED THRIFTS AND COVERING CUSTOMERS' DEPOSITS WITH THE RTC IN PARTICULAR FREQUENTLY CRITICIZED FOR POOR MANAGEMENT AND CONTRACTING FAILURES AMONG OTHER PROBLEMS MANY LAWMAKERS ARE RELUCTANT TO AUTHORIZE MORE BAILOUT FUNDS WITHOUT ASSURANCE OF REFORMS THE MEASURE WOULD GIVE THE RTC A FINAL 28 BILLION TO LAST UNTIL THE AGENCY'S POWER TO TAKE OVER FAILED THRIFTS EXPIRES AT THE END OF THIS FISCAL YEAR ON SEPT 30 AN ADDITIONAL 17 BILLION IN FUNDS WOULD GO TO THE FEDERAL DEPOSIT INSURANCE CORP'S SAVINGS ASSOCIATION INSURANCE FUND WHICH WOULD COVER SAVINGS DEPOSITS IN FAILED S&LS AFTER THAT DATE THE FUNDING PROPOSAL FACES TOUGHER GOING IN THE HOUSE 9303260077 930326 PEOPLE PATTERNS BY ALAN L OTTEN THE GENERATION GAP NARROWS ON SEXUAL PERMISSIVENESS AS YOUNGER ADULTS GROW LESS TOLERANT DURING THE SEXUAL REVOLUTION OF THE 1960S YOUNG PEOPLE HELD FAR MORE LIBERAL VIEWS THAN THEIR ELDERS ON PREMARITAL SEX EXTRAMARITAL SEX AND HOMOSEXUALITY TOM W SMITH A RESEARCH ASSOCIATE AT THE UNIVERSITY OF CHICAGO'S NATIONAL OPINION RESEARCH CENTER ANALYZED NATIONAL SURVEYS OF THE PAST TWO DECADES AND FOUND THE GENERATIONAL DIFFERENCES HAVE DIMINISHED TODAY'S YOUNG PEOPLE ARE STILL MORE TOLERANT THAN OLDER PEOPLE ON THESE ISSUES BUT LESS SO THAN WERE THEIR COUNTERPARTS IN THE 1960S AND 1970S EIGHTEEN PERCENT OF PEOPLE 18 TO 25 YEARS OLD AND 22 OF THOSE IN THE 26TO33 AGE GROUP SAID IN THE RESEARCH CENTER'S MOST RECENT SURVEYS THAT PREMARITAL SEX IS ALWAYS WRONG IN THE SURVEYS OF THE MID1970S ONLY 12 OF THE 18TO25 AGE GROUP AND 17 OF THE 26TO33 AGE RANGE THOUGHT THAT WAY OLDER PEOPLE TODAY APPEAR LESS CENSORIOUS ON PREMARITAL SEX THAN WERE THEIR COUNTERPARTS IN EARLIER SURVEYS THE DIFFERENCE BETWEEN THE DISAPPROVING PROPORTION IN THE YOUNGEST 18TO25 AND OLDEST 74PLUS AGE GROUPS HAS NARROWED TO 35 PERCENTAGE POINTS FROM 51 PERCENTAGE POINTS IN THE MID1970S SIMILAR NARROWING SHOWED IN ATTITUDES TOWARD EXTRAMARITAL SEX AND HOMOSEXUALITY THOUGH IN BOTH CASES THE CHANGE WAS DUE ALMOST ENTIRELY TO RISING DISAPPROVAL AMONG YOUNGER ADULTS OLDER AGE GROUPS WERE JUST ABOUT AS NEGATIVE AS THEIR COUNTERPARTS OF THE MID1970S BY THE LATE 1980S THE GAP BETWEEN THE YOUNGEST AND OLDEST AGE GROUPS HAD SHRUNK BY MORE THAN TWOTHIRDS TO LESS THAN 10 PERCENTAGE POINTS ON EXTRAMARITAL SEX AND BY HALF TO LESS THAN 17 PERCENTAGE POINTS ON HOMOSEXUAL RELATIONS THOSE WITH HIGHER INCOMES OR MORE EDUCATION TENDED TO BE MORE TOLERANT MEN WERE INCLINED TO BE MORE ACCEPTING THAN WOMEN OF PREMARITAL AND EXTRAMARITAL SEX BUT LESS TOLERANT OF HOMOSEXUALITY GROWTH IN THE NUMBER OF HISPANIC TEENAGERS HELPS KEEP TEENAGE BIRTH RATES RISING FIGURES FROM THE NATIONAL CENTER FOR HEALTH STATISTICS SHOW THAT IN 1990 THERE WERE 599 LIVE BIRTHS PER 1000 WOMEN BETWEEN THE AGES OF 15 AND 19 UP MARKEDLY FROM 573 IN 1989 AND 502 IN 1986 THE RISE IN THE TEEN BIRTH RATE DURING THE LATTER HALF OF THE 1980S REVERSED A LONGTERM DECLINE THE HIGHER RATES OF THE PAST FEW YEARS MADE FOR STEADY INCREASES IN THE NUMBER OF BIRTHS TO TEENAGE MOTHERS THOUGH THE TOTAL TEEN POPULATION WAS SHRINKING THE NUMBER OF LIVE BIRTHS TO MOTHERS AGES 15 TO 19 ROSE TO 522000 IN 1990 FROM 462000 IN 1986 OVER THE SAME PERIOD THE NUMBER OF FEMALES 15 TO 19 YEARS OLD FELL TO 86 MILLION FROM 92 MILLION TWO FACTORS CONTRIBUTE TO THE RISING TEEN BIRTH RATE ACCORDING TO GOVERNMENT ANALYST STEPHANIE J VENTURA ONE IS A GROWING PROPORTION OF SEXUALLY EXPERIENCED TEENAGERS IN 1988 THE LATEST YEAR FOR WHICH SUCH FIGURES ARE AVAILABLE JUST OVER ONEFOURTH OF ALL 15YEAROLD FEMALES AND JUST OVER HALF OF ALL THOSE 17 YEARS OLD HAD ALREADY HAD SEXUAL INTERCOURSE AT LEAST ONCE THE COMPARABLE 1980 FIGURES WERE 17 AND 36 SECOND HISPANIC TEENS MAKE UP A STEADILY INCREASING PROPORTION OF THE TOTAL TEEN POPULATION AND HISPANICS TEND TO HAVE HIGH FERTILITY RATES AT ALL AGES THE NUMBER OF HISPANIC FEMALES 15 TO 19 ROSE 12 BETWEEN 1986 AND 1990 WHILE THE NUMBER OF NONHISPANICS IN THAT AGE RANGE FELL 8 IN 1990 THE BIRTH RATE FOR HISPANICS 15 TO 19 YEARS OLD WAS 1003 LIVE BIRTHS PER 1000 COMPARED WITH 425 FOR NONHISPANIC WHITE TEENAGERS THE RATE FOR BLACK TEENAGERS REMAINS HIGHER IT WAS 1162 IN 1990 BUT THE NUMBER OF BLACK TEENAGERS DECLINED IN THE FIVE YEARS THAT THE OVERALL TEEN BIRTH RATE CLIMBED FERTILITY CONTINUES TO FALL IN MUCH OF THE DEVELOPING WORLD AS FAMILYPLANNING ASSISTANCE REACHES MORE WOMEN THE POPULATION INFORMATION PROGRAM OF THE JOHNS HOPKINS SCHOOL OF PUBLIC HEALTH ASSEMBLED DATA FROM TWO HUGE SURVEY PROGRAMS THAT SINCE 1985 HAVE INTERVIEWED MORE THAN 300000 WOMEN OF CHILDBEARING AGE IN 44 COUNTRIES IN ASIA AFRICA AND LATIN AMERICA THE HOPKINS ANALYSIS CONCLUDES THAT FERTILITY IN THOSE COUNTRIES HAS DROPPED BY ONETHIRD OVER THE PAST THREE DECADES TO AN AVERAGE OF FOUR CHILDREN PER WOMAN TODAY FROM SIX IN THE 1960S SOME COUNTRIES OF COURSE EXPERIENCED GREATER DECLINES 50 IN THAILAND 46 IN INDONESIA 40 IN COLOMBIA AND JAMAICA A RAPID SPREAD IN THE USE OF EFFECTIVE CONTRACEPTION IS CREDITED FOR THE FALLING FERTILITY THE REPORT SAYS EXCLUDING CHINA AN AVERAGE OF SLIGHTLY OVER ONETHIRD OF MARRIED WOMEN OF REPRODUCTIVE AGE IN THE DEVELOPING WORLD NOW USE MODERN METHODS OF FAMILY BIRTH CONTROL COMPARED WITH ABOUT 10 IN THE 1960S AND WITH A CURRENT AVERAGE OF ABOUT 70 IN THE DEVELOPED WORLD AND CHINA VOLUNTARY FEMALE STERILIZATION IS THE MOST WIDELY USED METHOD OF BIRTH CONTROL PARTICULARLY IN LATIN AMERICA WITH ORAL CONTRACEPTIVES AND INTRAUTERINE DEVICES ACCOUNTING FOR MOST OF THE REMAINING BIRTHCONTROL EFFORT ONE WOMEN OUT OF FIVE TOLD INTERVIEWERS THAT SHE DIDN'T WANT TO BECOME PREGNANT BUT WASN'T USING CONTRACEPTION TO PREVENT IT IN SOME COUNTRIES AS MANY AS ONEFOURTH TO ONETHIRD OF THE WOMEN SAID THEIR PREVIOUS BIRTH HAD BEEN UNWANTED BASED ON THESE ANSWERS THE REPORT ESTIMATES AT LEAST A 20 TO 30 UNMET NEED FOR FAMILYPLANNING SERVICES SENSE OF SMELL DIMINISHES GREATLY WITH AGE EVEN AMONG OTHERWISE HEALTHY INDIVIDUALS RESEARCHERS AT THE NATIONAL INSTITUTES OF HEALTH DISCOVER THEY WARN THIS CAN CAUSE SIGNIFICANT SAFETY PROBLEMS AMONG OLDER PEOPLE SUCH AS INABILITY TO SMELL FIRE LEAKING GAS OR SPOILED FOODS THE PARENTAL HOME IS STILL HOME FOR 12 OF ALL 25 TO 34YEAROLDS THE CENSUS BUREAU SAYS IN 1980 ONLY 9 OF PEOPLE IN THAT AGE GROUP LIVED WITH THEIR PARENTS 9303260076 930326 BUSINESS BRIEFS LITTON INDUSTRIES INC RECEIVED TWO CONTRACTS VALUED AT ABOUT 50 MILLION FROM FORD MOTOR CO'S EUROPEAN UNIT TO PROVIDE MACHINING SYSTEMS FOR THE AUTO MAKER'S NEW 16VALVE ENGINE CONSOLIDATED NATURAL GAS CO'S CNG PRODUCING CO SUBSIDIARY SUCCESSFULLY BID 19 MILLION FOR FIVEYEAR LEASES ON FIVE GULF OF MEXICO TRACTS MICHAEL BAKER CORP'S MELLON STUART CONSTRUCTION INC UNIT WAS AWARDED A 152 MILLION CONTRACT TO RENOVATE A CHICAGO BUILDING STERLING BANCORP INC AGREED TO ACQUIRE CLOSELY HELD ZENITH FINANCIAL CORP OF GREAT NECK NY TOSCO CORP AGREED TO BUY 60000 BARRELS A DAY OF CRUDE OIL FROM STATOIL AS THE NORWEGIAN STATEOWNED OIL COMPANY 9303260075 930326 BUSINESS BRIEF BATTLE MOUNTAIN GOLD CO FIRM TO POST QUARTERLY LOSS WEATHER OTHER WOES CITED BATTLE MOUNTAIN GOLD CO SAID IN HOUSTON THAT IT EXPECTS TO REPORT A LOSS OF FOUR CENTS TO SIX CENTS A SHARE FOR THE FIRST QUARTER BECAUSE OF HARSH WINTER WEATHER IN NEVADA LOWER GOLD PRICES AND PHASING DOWN OF ITS FORTITUDE MINE IN NEVADA IN THE YEARAGO FIRST QUARTER THE COMPANY REPORTED A LOSS OF 247000 OR LESS THAN ONE CENT A SHARE BATTLE MOUNTAIN ALSO SAID AN 85OWNED SUBSIDIARY HAS COMPLETED CONSTRUCTION AND STARTUP OF ITS KORI KOLLO MINE 100 MILES FROM LA PAZ BOLIVIA THE MINE WILL PRODUCE ABOUT 245000 OUNCES A YEAR MORE THAN REPLACING LOST PRODUCTION AT ITS DEPLETING FORTITUDE MINE THE COMPANY SAID 9303260074 930326 CORPORATE FOCUS MAKEOVER OF MORRISON KNUDSEN COMES JUST IN TIME AFTER BIG SETBACKS COMPANY IS POISED TO PROFIT FROM EMPHASIS ON RAILCARS BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL BOISE IDAHO AS A CORPORATE TACTICIAN WILLIAM AGEE HAS SEEN SOME OF HIS BESTLAID PLANS BACKFIRE WHEN HE WAS BENDIX CORP'S WHIZ KID CHAIRMAN IN 1982 MR AGEE LOST HIS COMPANY WITH A POORLY TIMED TAKEOVER EFFORT AGAINST MARTIN MARIETTA CORP HIS QUICKTURNAROUND STRATEGY FOR MORRISON KNUDSEN CORP WHEN HE ARRIVED IN 1988 SENT THE OLDLINE ENGINEERING COMPANY'S MORALE SKIDDING AND YIELDED FOUR YEARS OF LACKLUSTER EARNINGS AND A LAGGING STOCK PRICE THEN LAST YEAR MORRISON KNUDSEN'S 55YEAROLD CHAIRMAN WADED INTO A HIGHPROFILE BOUT OF JAPANBASHING AFTER THE COMPANY LOST A 115 MILLION RAILCAR CONTRACT IN LOS ANGELES TO SUMITOMO CORP THE LOS ANGELES COUNTY TRANSPORTATION COMMISSION EVENTUALLY SHELVED THE CONTRACT BUT THE INCIDENT LEFT SUCH A BAD TASTE THAT COMMISSION CHAIRMAN RAY GRABINSKI STILL CALLS MR AGEE'S CONDUCT OUTRAGEOUS MR AGEE IS UNREPENTANT WE HAD TO DEFEND OUR CORPORATE HONOR HE SAYS CONTENDING THAT THE COMMISSION BYPASSED MORRISON KNUDSEN'S LOW BID AND TRIVIALIZED ITS ENGINEERING EXPERTISE THESE DAYS HOWEVER MR AGEE MAY FINALLY BE READY TO CASH IN THOUGH SKEPTICS ABOUND AFTER POSTING A 71 MILLION LOSS LAST YEAR FOLLOWING A 205 MILLION CHARGE FOR AN ACCOUNTING CHANGE AND DEBT WRITEOFF MORRISON KNUDSEN SEEMS TO BE IN THE RIGHT PLACE AT THE RIGHT TIME MR AGEE HAS HONED THE COMPANY'S DESIGN AND CONSTRUCTION ARM TO TAKE ADVANTAGE OF THE CLINTON ADMINISTRATION'S PLANS FOR MAJOR PUMPPRIMING MASS TRANSIT AND PUBLIC WORKS PROJECTS HE HAS ALSO CLEARED AWAY MOST OF MORRISON KNUDSEN'S DEBT WITH THE REDEMPTION OF 166 MILLION OF LIQUID YIELD OPTION NOTES MORRISON KNUDSEN NOW BOASTS A HEFTY 47 BILLION ORDER BACKLOG AND IS IN LINE FOR SEVERAL POTENTIALLY HUGE CONSTRUCTION PROJECTS INCLUDING PROPOSED HIGHSPEED RAIL SYSTEMS IN TEXAS AND NEW ENGLAND AND A PLANNED 82MILE BRIDGE TO CANADA'S PRINCE EDWARD ISLAND BUT MR AGEE'S CONSUMING INTEREST THESE DAYS IS MORRISON KNUDSEN'S 12 BILLION OF RAILCAR CONTRACTS HE SEES MORRISON KNUDSEN'S RAILCAR OPERATIONS AS A BURGEONING PROFIT CENTER THAT COULD ACCOUNT FOR AS MUCH AS 35 OF THE COMPANY'S OPERATING PROFIT WITHIN THREE YEARS UP FROM JUST OVER 21 LAST YEAR SO FAR MR AGEE'S PLAN TO TURN MORRISON KNUDSEN INTO A BIGTIME RAILCAR MAKER SEEMS ON TRACK THE COMPANY HAS DELIVERED MORE THAN 110 NEW CARS TO THE CHICAGO TRANSIT AUTHORITY FROM ITS PLANT IN HORNELL NY ITS NEW CHICAGO RAILCAR FACTORY BUILT ON THE SITE OF GEORGE PULLMAN'S ORIGINAL SLEEPERCAR PLANT SHOULD BE TURNING OUT HIGHLY AUTOMATED CARS BY MIDYEAR ANOTHER RAILCAR PLANT IS SLATED TO OPEN IN MID1994 IN PITTSBURGH CALIF IN ADDITION TO THE CTA CONTRACT MORRISON KNUDSEN HAS LINED UP BIDS TO SUPPLY CARS TO CHICAGO'S METRA SYSTEM NEW YORK'S METRONORTH SAN FRANCISCO'S BART THE CALIFORNIA DEPARTMENT OF TRANSPORTATION AND AMTRAK IF DEMAND FOR MASS TRANSIT CONTINUES TO GROW AND PROFITS FROM RAILCAR DELIVERIES MATCH MR AGEE'S EXPECTATIONS MORRISON KNUDSEN'S 1993 NET INCOME OUGHT TO MATCH THE LOW END OF ANALYSTS' EXPECTATIONS OF 31 MILLION TO 33 MILLION OR ABOUT 1 A SHARE THESE DAYS WE FEEL VERY BLESSED SAYS MR AGEE WHO PLANS TO STEP DOWN WEDNESDAY AS A DIRECTOR OF DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL BUT SHAREHOLDERS HAVE REMAINED RELATIVELY UNBLESSED THE COMPANY'S STOCK HAS TRADED IN A RANGE OF 15 TO 30 A SHARE SINCE MR AGEE CAME ABOARD AND THIS YEAR BEEN AT THE LOW END OF THAT RANGE IT CLOSED YESTERDAY AT 20625 A SHARE UP 25 CENTS IN COMPOSITE TRADING ON THE BIG BOARD THE EXPECTED 1993 EARNINGS ARE BELOW THE 34 MILLION TO 365 MILLION MORRISON KNUDSEN EARNED ANNUALLY FROM 1989 TO 1991 MORRISON KNUDSEN HAS SHED MOST OF ITS SMALLER CONSTRUCTION PROJECTS THAT HURT EARNINGS LAST YEAR AND SHOULD SEE MR AGEE SAYS SUBSTANTIAL PROFIT GAINS THIS YEAR FROM LARGER JOBS THE RAILCAR GAMBIT WILL HAVE TO MAKE UP FOR SHRINKING OUTSIDE INCOME MOSTLY SECURITIES GAINS EXPECTED TO BE ABOUT 10 MILLION THIS YEAR COMPARED WITH 225 MILLION LAST YEAR A DASH OF CAUTION IS IN ORDER SAYS BYRON KALLAN AN ANALYST FOR PRUDENTIAL SECURITIES MR KALLAN LIKE OTHERS NOTES THAT WHILE THE COMPANY HAS DONE PLENTY OF RAILCAR REBUILDING IN THE PAST IT HAS LITTLE EXPERIENCE BUILDING NEW ONES MR AGEE'S AGGRESSIVE EFFORT TO CRACK THE RAILCAR MARKET HAS OTHERS WONDERING WHETHER HE MAY HAVE PUSHED MORRISON KNUDSEN TOO HARD SOME COMPETITORS SAY THE COMPANY UNDERBID TO WIN ITS NEW CONTRACTS AND COULD END UP LOSING MONEY ON THE WORK SOME OF THEIR BUSINESS CAME AT SOME VERY GOOD PRICES SAYS LUTZ ELSNER PRESIDENT OF RIVAL ABB TRACTION OF ELMIRA HEIGHTS NY WHETHER THEY MAKE MONEY ON IT I DON'T THINK I WANT TO SAY MR AGEE BRISTLES AT SUCH TALK MORRISON KNUDSEN HE SAYS WON ITS RAILCAR JOBS FAIR AND SQUARE AND EXPECTS TO MAKE MONEY ON THE NEW CARS SKEPTICS WONDER HOWEVER ABOUT TWO RECENT CONTRACTS MORRISON KNUDSEN DIDN'T WIN LAST FALL DESPITE MR AGEE'S HANDSON LOBBYING HONOLULU'S CITY COUNCIL VOTED DOWN FUNDING FOR A 11 BILLION RAIL TRANSIT PROJECT MORRISON KNUDSEN WAS SO SURE IT HAD THE JOB THAT ITS ANNUAL REPORT LAST YEAR CONTAINED A SKETCH OF ITS LIGHT RAILCAR WITH THE CAPTION AUTOMATED TRANSIT CAR THAT WILL SERVE COMMUTERS IN HONOLULU THEN IN FEBRUARY MORRISON KNUDSEN'S SUCCESSFUL BIDDING STREAK ENDED THE COMPANY LOST A CONTRACT TO REPLACE 220 CARS FOR PHILADELPHIA'S SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY ITS SEPTA BID WAS NEARLY 100 MILLION OVER ABB TRACTION'S WINNING 285 MILLION PROPOSAL MR AGEE AND HIS SENIOR EXECUTIVES INSIST MORRISON KNUDSEN MAY YET WIN THE HONOLULU JOB ESPECIALLY IF THE FEDERAL GOVERNMENT BOOSTS FUNDING FOR IT AS FOR THE SEPTA CONTRACT THE COMPANY'S MANAGERS SAY ABB A UNIT OF ZURICHBASED ABB ASEA BROWN BOVERI CO UNDERPRICED ITS BID MR ELSNER DENIES THAT MORRISON KNUDSEN HE SAYS PRICED ITS CARS AT 17 MILLION EACH COMPARED WITH ABB'S BID OF LESS THAN 13 MILLION A CAR MORRISON KNUDSEN COULD ALSO FACE ANOTHER EMBARRASSMENT IN MAY THE LOS ANGELES COUNTY TRANSPORTATION COMMISSION PLANS TO REAWARD A LIGHTRAIL CONTRACT MORE THAN TWICE THE SIZE OF LAST YEAR'S CANCELED BID SOME EXPERTS SEE SUMITOMO AS THE LIKELY WINNER AS IT HAS BEEFED UP ITS US SUPPLY NETWORK UNDERCUTTING THE CLAIM THAT GIVING THE BID TO A JAPANESE COMPANY WOULD COST US JOBS NONETHELESS MR AGEE REMAINS UNDAUNTED IN HIS ENTHUSIASM FOR THE RAIL TRANSPORTATION BUSINESS THREE YEARS AGO HE SAYS WALL STREET WONDERED WHY WE WERE IN IT THIS YEAR EVEN SKEPTICS SUCH AS PRUDENTIAL'S MR KALLAN ADMIT THE COMPANY'S RAILCAR UNIT SHOULD BOOST OPERATING EARNINGS BY 23 MILLION UP FROM 13 MILLION LAST YEAR BILL AGEE'S TIMING HAS BEEN TERRIFIC SAYS GEORGE HALOULAKOS ANALYST FOR DAIN BOSWORTH A YEAR AGO NOBODY WOULD HAVE GIVEN MK ODDS THEY'D BE SUCCESSFUL AT RAIL AGEE TOOK A TRADITIONAL DIRTMOVING OUTFIT AND MADE IT OVER JUST IN TIME 9303260073 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT HOLLYWORLD JAPAN LAYS AN EGG STUNG BY HOLLYWOOD FLOPS INVESTORS COOL THEIR CASH ON THE SIDELINES BY RICHARD TURNER AND YUMIKO ONO THE OPENING CREDITS HAD BARELY FLICKERED ON THE SCREEN BEFORE THE FIRST SIGNS APPEARED THAT JAPAN'S HOLLYWOOD MOVIE MIGHT BE TURNING INTO A HORROR SHOW JUST DAYS AFTER MATSUSHITA ELECTRIC INDUSTRIAL CO AGREED IN NOVEMBER OF 1990 TO PAY MORE THAN 6 BILLION FOR MCA INC ITS NEW STUDIO RELEASED A COSTLY HEAVILY PROMOTED MOVIE THE FILM WAS HAVANA A BOMB OF GODZILLALIKE PROPORTIONS IT WAS FOLLOWED BY MORE THAN TWO YEARS OF BOXOFFICE DROUGHT WELCOME TO HOLLYWOOD A FEW MONTHS EARLIER SONY CORP HAD PAID 34 BILLION FOR COLUMBIA PICTURES AND ITS TRISTAR PICTURES AFFILIATE AND WAS TRYING TO WOO TWO WELLKNOWN MOVIE PRODUCERS PETER GUBER AND JON PETERS TO RUN IT SONY PROMPTLY WALKED INTO A LEGAL BUZZSAW IT EVENTUALLY PAID HUNDREDS OF MILLIONS OF DOLLARS TO TIME WARNER WHERE THE TWO MEN HAD A LONGTERM PRODUCING CONTRACT HALF THE TEAM MR PETERS NO LONGER WORKS FOR THE COMPANY AND COLUMBIA/TRISTAR'S RESULTS HAVE BEEN MIXED AT BEST AND THEN THERE'S WALT DISNEY CO WHICH IN 1990 WENT TO JAPAN SEEKING 191 MILLION TO HELP FINANCE A LIMITED PARTNERSHIP TO PAY FOR ITS NEXT SLATE OF MOVIES BUT THE JAPANESE UNDERWRITER HAD TROUBLE SELLING THE ISSUE AND THE TERMS LEFT SOMETHING TO BE DESIRED DISNEY TOOK BIG FEES AND THE POORPERFORMING FILMS OFFSET SOME OF THE REVENUE FROM THE HITS INVESTORS GOT SISTER ACT BUT THEY ALSO GOT BILLY BATHGATE AND NEWSIES WHAT THEY DIDN'T GET WERE BEAUTY AND THE BEAST AND ALADDIN WHICH WERE EXEMPT FROM THE PACKAGE INVESTORS PROBABLY WILL WIND UP WITH SINGLEDIGIT RETURNS AFTER ALL OF THIS IT'S NO WONDER THAT JAPANESE INVESTORS ARE RUNNING FOR COVER ALL JAPANESE INVESTMENT IN HOLLYWOOD IS FROZEN SAYS KAZUHIKO NISHI PRESIDENT OF ASCII CORP A COMPUTERSOFTWARE PRODUCER AND SEMICONDUCTOR DESIGNER THAT HAS SUNK MONEY INTO HOLLYWOOD MANY JAPANESE COMPANIES FEEL HOLLYWOOD IS PART OF LAS VEGAS INDEED IT'S HARD TO IMAGINE THAT JUST A FEW YEARS AGO JAPANESE INVESTORS ACTUALLY WERE COMPETING TO BUY INTO HOLLYWOOD FILMS LAST YEAR JAPANESE COMPANIES ACCOUNTED FOR ONLY 20 MILLION TO 30 MILLION OF THE TOTAL FINANCING FOR THE PRODUCTION OF HOLLYWOOD MOVIES INDUSTRY OBSERVERS ESTIMATE COMPARED WITH AS MUCH AS 125 BILLION A YEAR IN THE LATE 1980S EXCLUDING THE PURCHASES OF COLUMBIA AND MCA WITH THE ECONOMIC DOWNTURN SLASHING CORPORATE PROFITS IN JAPAN MANY COMPANIES CAN NO LONGER AFFORD TO DABBLE IN SUCH A RISKY SIDE BUSINESS BANKS ARE RELUCTANT TO LEND MONEY FOR NEW MOVIE PROJECTS AND SUCH INDEPENDENT COMPANIES AS REALESTATE DEVELOPERS WHICH HAD BEEN LOOKING AT THE MOVIE BUSINESS AS A TAX SHELTER OFTEN NO LONGER HAVE TAX WORRIES BECAUSE THEY HAVE NO PROFITS CLEARLY THOUGH THE MOST VISIBLE PRESENCE IS THAT OF SONY AND MATSUSHITA AND SO FAR IF THIS IS LAS VEGAS THEY HAVE ROLLED SNAKE EYES THEY BOTH OVERPAID SAYS EMANUEL GERARD AN ENTERTAINMENTINDUSTRY ANALYST AT GERARD KLAUER MATTISON & CO NEW YORK TIMING IS EVERYTHING AND THEY BOUGHT RIGHT AT THE TOP BUT HOLLYWOOD OBSERVERS SAY THAT OVERPAYMENT IS ONLY PART OF THE PROBLEM MUCH WAS EXPECTED FROM THE JAPANESE TAKEOVER OF THESE COMPANIES NOW PEOPLE ARE ASKING WHERE'S THE BEEF THERE ARE FEW SIGNS OF NEW EFFICIENCIES INTRODUCED BY THE JAPANESE FEW EXAMPLES OF THEIR DEEP POCKETS EXCEPT IN SOME BIG SPENDING ON MOVIES AND A RENOVATED STUDIO LOT AT COLUMBIA/TRISTAR AND ONLY GLIMMERS OF THE VAUNTED HARDWARE/SOFTWARE SYNERGY THAT APPARENTLY MOTIVATED THEM IN THE FIRST PLACE MANY IN HOLLYWOOD CONTINUE TO BELIEVE THAT SONY PLANS TO SPIN OFF A PORTION OF SONY PICTURES ENTERTAINMENT TO THE PUBLIC PERHAPS ITS TRISTAR DIVISION OTHERS SPECULATE THAT MATSUSHITA MIGHT TAKE A SIMILAR ROUTE OR TAKE ON A HUGE GLOBAL PARTNER SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO OR PHILIPS NV WITH WHOM IT HAS OTHER STRATEGIC RELATIONSHIPS THE COMPANIES WON'T COMMENT ON SUCH SPECULATION BUT INSIST THAT THEY VIEW THEIR ACQUISITIONS AS LONGTERM INVESTMENTS AND DON'T REGRET THEIR PURCHASES A SPOKESMAN FOR MATSUSHITA SAYS THE COMPANY ISN'T THINKING OF CUTTING MCA'S BUDGET BECAUSE OF BROADER CORPORATE PROBLEMS OR MEDDLING WITH HOLLYWOOD'S STYLE OF PRODUCT DEVELOPMENT THE HEADS OF BOTH MCA AND COLUMBIA SWEAR THAT THEY ARE LEFT ALONE ON THE CREATIVE SIDE WHICH INCLUDES THE BUDGETING OF SPECIFIC PICTURES BUT ON BROADER FINANCIAL QUESTIONS WELL THAT MAY BE A DIFFERENT STORY THEY HAVE A LONGTERM VIEW OF EVERYTHING AS LONG AS IT LOOKS GOOD FOR THE QUARTER SAYS MCA PRESIDENT SID SHEINBERG THEY MAY HAVE A 50YEAR PLAN BUT I DON'T KNOW ANYONE WHO BELIEVES IT IRONICALLY AS POORLY AS COLUMBIA/TRISTAR AND MCA MIGHT HAVE BEEN PERFORMED SO FAR SONY AND MATSUSHITA MAY HAVE WORSE PROBLEMS AT HOME IF THERE'S ONE THING SCARIER THAN THE ENTERTAINMENT BUSINESS IT'S THE CONSUMERELECTRONICS BUSINESS SAYS ENTERTAINMENT ATTORNEY PETER HOFFMAN ONLY HALFJOKING IN ADDITION SONY'S EARLIER PURCHASE OF CBS RECORDS HAS PAID OFF AND MCA'S THEME PARKS RALLIED LAST YEAR AFTER A WEAK 1991 THERE ARE RENEWED SIGNS THAT MATSUSHITA IS ABOUT TO HELP FINANCE A UNIVERSAL STUDIOS TOUR IN JAPAN AND IN FRANCE AS WELL AS A SECOND ATTRACTION NEXT TO THE CURRENT SITE IN ORLANDO FLA AT SONY PICTURES CHAIRMAN GUBER POINTS TO THE STUDIO'S HIGHFLYING MARKET SHARE THE PURSUIT OF MARKET SHARE A WAY OF LIFE IN JAPANESE BUSINESS TRADITIONALLY HASN'T MEANT MUCH IN HOLLYWOOD BUT AT SONY PICTURES EXECUTIVES TALK ABOUT IT CONSTANTLY AND INSIDERS SAY THAT MATSUSHITA IS PRESSURING MCA TO INCREASE ITS MARKET SHARE THERE ARE MANY WAYS TO INFLATE MARKET SHARE AT THE EXPENSE OF PROFIT A STUDIO CAN MAKE MORE MOVIES THAN ANYONE ELSE OR MAKE MORE EXPENSIVE ONES A STUDIO CAN BUY A GROSS THAT IS SPEND SO MUCH MONEY TO MARKET A MOVIE THAT ITS RESULTING HIGH REVENUE WON'T PRODUCE MUCH PROFIT BUT IMPROVING MARKET SHARE CAN BE MORE THAN JUST A WAY TO PLEASE JAPANESE OWNERS IT CAN HELP A STUDIO GAIN DISTRIBUTION MUSCLE FOR EXAMPLE IT CAN MAKE IT MORE DIFFICULT FOR COMPETITORS TO GET GOOD MOVIE SCREENS FOR THEIR FILMS AT A BUSY TIME OF YEAR AND IT CAN HELP A STUDIO GAIN STATURE AND PRESTIGE AND BECOME A PLAYER ESPECIALLY IF IT HAS BEEN MORIBUND UNDER PREVIOUS MANAGEMENT AS COLUMBIA WAS AND SONY AND MATSUSHITA STILL HAVE HIGH HOPES FOR SYNERGY BOTH JAPANESE COMPANIES HAVE MAJOR SUMMER MOVIES TO LOOK FORWARD TO WITH OPPORTUNITIES FOR MAJOR CROSSPROMOTIONS IN JAPAN AND LINKS TO CONSUMERELECTRONICS PRODUCTS WORLDWIDE MCA HAS JURASSIC PARK AND COLUMBIA IS RELEASING THE LAST ACTION HERO BEYOND THAT SONY HAS INVESTED IN A HIGHDEFINITION TELEVISION FACILITY AT THE STUDIO LOT AND HAS ATTRACTED NOTED FILMMAKERS TO TRY IT OUT MATSUSHITA HAS INVESTED IN AN INTERACTIVE MULTIMEDIA COMPANY 3DO CO WHICH IS DEPENDING ON HOLLYWOOD PROGRAMMING TO HELP IT CUT THROUGH MARKET CLUTTER BOTH SONY AND MATSUSHITA ARE TRYING TO MAKE USE OF THEIR MUSIC BUSINESSES TO SPUR SALES OF THEIR RIVAL MINIDISCS AND DCC OR DIGITAL COMPACT CASSETTE TECHNOLOGY TOKYO'S CROWDED HMV RECORD STORE FOR EXAMPLE DISPLAYS A SAMPLE MINIDISC PLAYER RIGHT BY THE ENTRANCE AND INVITES CUSTOMERS TO LISTEN TO THE LATEST MICHAEL JACKSON SONGS ON COLUMBIA RECORDS ONE BUGABOO THAT THE JAPANESE WOULD EXERT CREATIVE CONTROL IS BARELY MENTIONED NOWADAYS MATSUSHITA'S ACQUISITION OF MCA SWIFTLY WAS FOLLOWED BY REPORTS THAT THE FILM MR BASEBALL ABOUT AN AMERICAN ATHLETE IN JAPAN WAS BEING CHANGED TO PLEASE MCA'S NEW OWNERS EXECUTIVES NOW SAY THE REPORTS WERE BLOWN OUT OF PROPORTION A MATSUSHITA SPOKESMAN SAYS THE COMPANY LEAVES ALL THE CREATIVE DECISIONS TO THE STUDIO SONY OFFICIALS MAKE SIMILAR CLAIMS BY ALL ACCOUNTS THOSE CONTENTIONS ARE CORRECT THERE HASN'T BEEN A SINGLE MEETING ON THE SUBJECT SAYS MCA PRESIDENT SHEINBERG BUT THERE ARE LIMITS EXECUTIVES ADMIT THAT NEITHER MCA'S UNIVERSAL PICTURES NOR COLUMBIA/TRISTAR WOULD BE LIKELY TO MAKE A FILM OUT OF A BOOK LIKE MICHAEL CRICHTON'S JAPANBASHING RISING SUN AS NEWS CORP'S TWENTIETH CENTURY FOX UNIT IS DOING MAMORU FURUICHI DIRECTOR OF MATSUSHITA'S ENTERTAINMENT ARTS DIVISION SAYS THAT FOR NOW HIS COMPANY IS LOOKING TO THE STUDIO FOR LESSONS ON CREATIVITY OBSERVERS SAY IT HAS BEEN DIFFICULT FOR THE JAPANESE TO GRASP HOLLYWOOD'S VERSION OF RESEARCH AND DEVELOPMENT BUYING AND FUNDING HUNDREDS OF SCRIPTS ONLY A FEW OF WHICH GET MADE INTO MOVIES AND REALISTIC PROJECTIONS ARE IMPOSSIBLE NO ONE KNOWS HOW FILMS WILL PERFORM IN THE MOVIE BUSINESS THE US IS 10 20 YEARS AHEAD OF JAPAN SAYS SATORU ISEKI PRESIDENT OF NIPPON FILM DEVELOPMENT & FINANCE INC A COMPANY THAT POOLS INVESTORS' FUNDS TO FINANCE FILMS WHAT IS EMERGING ADDS MR SHEINBERG IS A RECOGNITION ON THEIR PART THAT THEIR BUSINESS AND OUR BUSINESS ARE NOT THE SAME THERE'S NO ANALOGY TO BUYING ANOTHER MANUFACTURER OF TELEVISION SETS OR AUTOMOBILES PERHAPS BUT MCA STAFFERS ALSO HAVE HAD TO CHANGE THEIR WAYS A BIT AS WELL LAST YEAR ONE MCA ACCOUNTING MANAGER TRAINED IN MATSUSHITA'S OSAKA HEADQUARTERS FOR A MONTH AND REALIZED WHAT PLANNING WAS ALL ABOUT SAYS MATSUSHITA'S MR FURUICHI BEFORE THE CONCEPT OF PROJECT PLANNING DIDN'T EVEN EXIST WE WERE TOLD MATSUSHITA HAS A TRADITION OF AUTONOMY AMONG ITS UNITS MR SHEINBERG SAYS THEIR ABILITY TO LOOK AT MCA AND UNDERSTAND THAT MCA HAS TO BE RUN DIFFERENTLY IS NOT SUCH A QUANTUM LEAP FOR THEM MCA ISN'T BEING RUN ANY DIFFERENTLY TODAY THAN IT WAS BEFORE THE ACQUISITION ALTHOUGH THERE MAY BE MORE PAPERS TO BE FILLED OUT BY ACCOUNTANTS MORE FORMS THAT NEED TO BE COMPLETED MCA EXECUTIVES MEET QUARTERLY WITH MATSUSHITA TO GO OVER BUDGETS AND PROJECTIONS MR GUBER SAYS HE MEETS ANNUALLY WITH SONY FOR THE SAME PURPOSE BOTH EXECUTIVES SAY THEY EITHER MET OR CAME CLOSE TO THEIR PROJECTIONS LAST YEAR MR SHEINBERG CALLS THE WIDELY PUBLICIZED REJECTION IN 1991 BY MATSUSHITA OF AN MCA PROPOSAL TO ACQUIRE VIRGIN RECORDS WHICH THORN EMI PLC LATER PICKED UP FOR MORE THAN 900 MILLION REGRETTABLE BUT PART OF A LEARNING PROCESS HE ADDS I'M NOT SURE WITH THE WISDOM OF HINDSIGHT THAT WE DID EVERYTHING WE COULD IN TERMS OF CONVINCING THEM ALSO HE SAYS MCA DIDN'T KNOW AT THE TIME THE FULL EXTENT OF MATSUSHITA'S PROBLEMS IN THE CONSUMERELECTRONICS BUSINESS AND MCA ITSELF WAS HAVING A LOUSY YEAR SONY AND MATSUSHITA OF COURSE AREN'T THE ONLY JAPANESE COMPANIES THAT HAVE POURED MONEY INTO HOLLYWOOD LAST YEAR ITOCHU CORP AND TOSHIBA CORP INVESTED 1 BILLION IN TIME WARNER INC IN RETURN FOR A 125 STAKE IN A SPUNOFF UNIT OF TIME WARNER THAT INCLUDES ITS CABLE HBO AND FILM UNITS THE COMPANIES SAY THEY HAVEN'T COME UP WITH SPECIFIC PLANS FOR THEIR INVESTMENT YET BUT WARNER BROS HAS CONTINUED ITS HOT HAND IN MOVIES AND THE JAPANESE INVESTORS HAVE ALREADY REAPED BENEFITS FROM ANOTHER ASPECT OF THE DEAL THEIR NEW HALFINTEREST IN WARNER BROS'S JAPANESE DISTRIBUTION COMPANY THEIR FILM THE BODYGUARD IS A RUNAWAY SUCCESS IN JAPAN AS FOR SYNERGIES AN ITOCHU OFFICIAL SAYS THESE THINGS TAKE 10 YEARS ANOTHER HOLLYWOOD INVESTMENT HAS BEEN MADE BY JAPAN'S VICTOR CO WHICH CONTINUES TO FINANCE LARGO ENTERTAINMENT LARGO HAS PRODUCED SIX FILMS SO FAR WITH TWO MORE TO COME SOON NONE WERE BLOCKBUSTERS ALTHOUGH POINT BREAK AND UNLAWFUL ENTRY WERE MODERATE SUCCESSES WE'RE IN AN ADOLESCENT PHASE SAYS JOSEPH COHEN THE COMPANY'S PRESIDENT FOR JAPAN SATELLITE BROADCASTING INC WHICH SET UP THE COUNTRY'S FIRST PRIVATE SATELLITE CHANNEL TWO YEARS AGO A HOLLYWOOD INVESTMENT MADE STRATEGIC SENSE THE COMPANY AND MANY OTHER INVESTORS SAW HUGE GROWTH POTENTIAL IN JAPAN'S FLEDGLING SATELLITE AND CABLETELEVISION BUSINESS AS MORE CHANNELS EMERGED THEY REASONED THERE WOULD BE A NEED FOR MORE US PROGRAMMING BUT THE ECONOMIC DOWNTURN HAS PUT A DAMPER ON THE ENTERTAINMENT BUSINESS IN JAPAN AS WELL AND JSB IS STRUGGLING TO FIND NEW SUBSCRIBERS THE COMPANY THOUGH HOPES TO MAKE THE BEST OF ITS STAKE IN A NEW MOVIE COMPANY RUN BY LOS ANGELES ENTERTAINMENT ATTORNEY ALLEN SHAPIRO AND PRODUCER DANIEL MELNICK WHO MADE SUCH FILMS AS ROXANNE ALL THAT JAZZ AND THE RECENT UNIVERSAL SOLDIER JSB WITH TWO EUROPEAN PARTNERS WILL PAY 50 OF THE COMPANY'S PRODUCTION COSTS AND GET SATELLITEDISTRIBUTION RIGHTS IN JAPAN AS WELL AS EQUITY PARTICIPATION IN THE PERFORMANCE OF THE MOVIES THE STRUCTURE WAS DESIGNED TO APPEAL TO JSB BECAUSE OF THE OWNERSHIP INTEREST INDIVIDUAL JAPANESE INVESTMENT IN HOLLYWOOD STARTED COOLING TWO YEARS AGO WHEN MOST INVESTORS WHO HAD BEEN UNFAMILIAR WITH THE MOVIE BUSINESS STARTED REALIZING THAT THEY WEREN'T GETTING RETURNS EVEN FOR BOXOFFICE HITS MANY HAD IN FACT EMBRACED DEALS THAT WERE DISADVANTAGEOUS TO THEM I DON'T WANT TO PUT MONEY INTO SOMETHING AND HAVE NO IDEA WHAT'S GOING ON SAYS SHIGERU MASUDA PRESIDENT OF ZERON INC FOUR YEARS AGO THE COMPANY GATHERED A GROUP OF JAPANESE COMPANIES TO INVEST 20 MILLION IN SOME HOLLYWOOD MOVIES BUT THE PROJECT WASN'T PROFITABLE AND MR MASUDA QUICKLY DROPPED OUT OF FILM INVESTMENT ALTOGETHER NOMURA BABCOCK & BROWN CO A JAPANESE INVESTMENTBANKING FIRM SAYS IT REMAINS OPTIMISTIC ABOUT ONE OF ITS INVESTMENTS IN INTERSCOPE COMMUNICATIONS INC LOS ANGELES SINCE THE COMPANY'S FIRST MOVIE THE HAND THAT ROCKS THE CRADLE WAS A HIT INVESTORS HAVE TO SEE HOW THE OTHER FOUR MOVIES INCLUDED IN THE INVESTMENT PROJECT TURN OUT BEFORE THEY CAN DETERMINE WHETHER THE OVERALL PROJECT WAS SUCCESSFUL STILL A NOMURA BABCOCK OFFICIAL CONCEDES THAT NONE OF THE INVESTORS ARE INTERESTED IN INVESTING AGAIN NO MATTER WHAT THE OUTCOME INTERSCOPE HAS MOVED ON TO OTHER OVERSEAS PARTNERS THE COMPANY SOLD A LARGE STAKE TO THE POLYGRAM UNIT OF PHILIPS PIONEER ELECTRONIC CORP SAYS THAT DESPITE RECENT FINANCIAL PROBLEMS IT STILL HOPES ITS 100 MILLION INVESTMENT IN CAROLCO PICTURES WILL BE PROFITABLE IN THE LONG RUN BUT AN OFFICIAL OF PIONEER WHICH LATE LAST YEAR SAID IT MIGHT HAVE AN AFFILIATE TAKE A 55 MILLION TO 65 MILLION CHARGE AGAINST ITS INVESTMENT IN CAROLCO HINTS OF SOME UNHAPPINESS PIONEER HADN'T BEEN RESEARCHING THE HOLLYWOOD MOVIE INDUSTRY FOR SUCH A LONG TIME BEFORE BUYING A STAKE IN CAROLCO HE SAYS DESPITE THE GENERAL CONCERN THERE ARE SIGNS THAT AT LEAST SOME JAPANESE ARE MOVING FORWARD IN HOLLYWOOD SHOCHIKU CO A MAJOR JAPANESE FILM DISTRIBUTOR PLANS TO PRODUCE A MOVIE IN HOLLYWOOD IN 1994 ONE OF THE FIRST SOLO ATTEMPTS BY A JAPANESE COMPANY MATA YAMAMOTO A JAPANESE PRODUCER IN HOLLYWOOD HAS RELEASED A LOWBUDGET MOVIE CALLED WIND KATSUSUKE KUZUI A JAPANESE PRODUCER LIVING IN THE US HAS BEEN FEATURED IN NUMEROUS JAPANESE MAGAZINES RECENTLY TELLING HOW HE STRUCK A GOOD DEAL WITH TWENTIETH CENTURY FOX FOR HIS FILM BUFFY THE VAMPIRE SLAYER AND MR ISEKI OF NIPPON FILM DEVELOPMENT & FINANCE SAYS HIS POOLED INVESTMENT IN HOWARDS END MAY REAP A RETURN OF 300 MAGAZINES ARE TRYING TO EDUCATE PROSPECTIVE INVESTORS NIKKEI ENTERTAINMENT A WEEKLY INDUSTRY MAGAZINE RECENTLY TRANSLATED A SERIES OF ARTICLES FROM THE HOLLYWOOD REPORTER EXPLAINING THE DIFFERENCE BETWEEN NET AND GROSS PROFITS AND WHY SOME SUCCESSFUL FILMS BRING NO PROFIT AT ALL TO INDIVIDUAL INVESTORS BUT MANY COMPANIES SAY IT WILL TAKE TIME BEFORE INVESTORS CONSIDER HOLLYWOOD AGAIN UNDER THESE ECONOMIC CONDITIONS NOW IS NOT THE TIME TO TALK ABOUT NEW INVESTMENTS SAYS CHOMEI UENO GENERAL MANAGER OF FUJISANKEI CALIFORNIA ENTERTAINMENT INC A DIVISION OF FUJISANKEI COMMUNICATIONS GROUP THE GIANT MEDIA CONGLOMERATE IN TOKYO RATHER THAN RUSH TO COLLECT THE MONEY FIRST WE'RE GOING TO WAIT TO SEE WHAT KINDS OF PROJECTS WE GET MR TURNER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU MS ONO IS A STAFF REPORTER IN THE JOURNAL'S TOKYO BUREAU 9303260072 930326 ABREAST OF THE MARKET INDUSTRIALS GAIN 1594 AS TENSIONS EASE WITHIN RUSSIAN GOVERNMENT BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN EASE IN THE TENSIONS WITHIN THE RUSSIAN GOVERNMENT CLEARED THE WAY FOR A MILD RALLY IN STOCKS THE NEWS SHORTLY BEFORE MIDDAY THAT RUSSIAN PARLIAMENT SPEAKER RUSLAN KHASBULATOV HAD COME OUT AGAINST PLANS TO IMPEACH PRESIDENT BORIS YELTSIN TURNED MODEST MORNING GAINS INTO A SIZABLE AFTERNOON RALLY MOST OF THOSE GAINS HELD THROUGH THE CLOSE AIDED BY SEVERAL WAVES OF PROGRAM BUYING THAT AT ONE POINT SENT THE MARKET TO WITHIN STRIKING DISTANCE OF RECORD TERRITORY THE DOW JONES INDUSTRIAL AVERAGE FINISHED WITH A GAIN OF 1594 TO 346132 AT ITS BEST LEVEL OF THE DAY THE AVERAGE WAS LESS THAN SIX POINTS BELOW ITS HIGH OF 347834 SET MARCH 10 SOME OF THE GROUPS THAT WERE BATTERED THE MOST IN WEDNESDAY'S SELLOFF WERE LEADERS YESTERDAY AMONG THEM WERE COMPUTER MAKERS SUCH AS DIGITAL EQUIPMENT WHICH ROSE 3 TO 45 1/8 AND HEWLETTPACKARD WHICH ADDED 1 3/4 TO 74 1/2 DRUG STOCKS ALSO RETOOK SOME LOST GROUND PFIZER ADDED 2 TO 59 5/8 AND JOHNSON & JOHNSON CLIMBED 1 1/2 TO 41 MERCK & CO WHOSE DISAPPOINTING EARNINGS PROJECTION HELPED TRIGGER WEDNESDAY'S RETREAT EDGED UP 3/4 TO 35 3/8 I THINK IT'S A LACK OF NEGATIVE NEWS THAT LIFTED THE MARKET SAID DAVID BUTLER HEAD OF EQUITY TRADING AT KEMPER SECURITIES PEOPLE GOT A LITTLE CONFIDENCE AND THERE WAS SOME BOTTOMFISHING HE SAID REFERRING TO BUYING IN STOCKS PEOPLE FELT HAD HIT LOWS THE STANDARD & POOR'S 500STOCK INDEX INCREASED 281 TO 45088 WHILE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADVANCED 142 TO 24833 THE DOW JONES EQUITY MARKET INDEX INCREASED 278 TO 42772 VOLUME FELL TO 250020000 FROM WEDNESDAY'S 271980000 THERE WERE 1149 ADVANCERS AND 741 DECLINERS RONALD B DORAN DIRECTOR OF INSTITUTIONAL EQUITY TRADING AT CL KIND & ASSOCIATES SAID THAT WITH THE BRIGHTENING NEWS BACKDROP PORTFOLIO MANAGERS MOVED TO DEPLOY MORE OF THEIR RELATIVELY LARGE CASH HOLDINGS BARRING NEW NEGATIVE DEVELOPMENTS HE EXPECTS THIS BUYING TO CONTINUE THROUGH THE END OF THE FIRST QUARTER NEXT WEEK YESTERDAY'S ECONOMIC NEWS HAD LITTLE EFFECT ON TRADING THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE FELL 2000 LAST WEEK IN LINE WITH ANALYSTS' FORECASTS THE NATIONAL ASSOCIATION OF REALTORS SAID SALES OF EXISTING SINGLEFAMILY HOMES FELL 6 IN FEBRUARY BRADLEY TURNER MARKET STRATEGIST AT MCDONALD & CO SECURITIES SAID THAT UNLESS DATA ARE SURPRISINGLY GOOD OR BAD HE EXPECTS ECONOMIC READINGS TO REMAIN IN THE BACKGROUND IN COMING SESSIONS ATTENTION WILL BE FOCUSED INSTEAD ON INTERNATIONAL DEVELOPMENTS AND ON CONGRESS'S CONSIDERATION OF CLINTON ADMINISTRATION BUDGET PLANS HE SAID WESTINGHOUSE ROSE 1 TO 15 3/8 IN HEAVY TRADING FIRST BOSTON WAS AN ACTIVE BUYER OF THE STOCK BUT WOULDN'T NAME THE CLIENTS ON WHOSE BEHALF IT WAS MAKING PURCHASES THERE IS SPECULATION THE COMPANY IS MOVING TOWARD NAMING A NEW CHIEF EXECUTIVE OFFICER CABLETRON SYSTEMS LEAPT 4 7/8 TO 87 5/8 THE COMPANY SAID NET INCOME JUMPED TO 87 CENTS A SHARE IN THE FOURTH QUARTER ENDED LAST MONTH FROM 59 CENTS A YEAR EARLIER SALES AT THE ROCHESTER NH COMPUTER NETWORKING COMPANY ROSE TO 123 MILLION FROM 823 MILLION CHARLES SCHWAB GAINED 2 3/4 TO 36 3/8 AFTER THE SAN FRANCISCO DISCOUNT BROKERAGE CONCERN BOOSTED ITS PERSHARE DIVIDEND TO 75 CENTS FROM 6 CENTS AND DECLARED A 3FOR2 STOCK SPLIT THE RECORD FOR BOTH IS MAY 3 SHARES OF TWO INSURANCE COMPANIES THAT HAD INITIAL PUBLIC OFFERINGS ADVANCED BOTH ISSUES CAME TO MARKET AT HIGHERTHANEXPECTED PRICES AND BOTH WERE INCREASED IN SIZE LIFE PARTNERS A DENVER INSURANCE CONCERN FORMED FOLLOWING A 1990 ACQUISITION BY INVESTMENT FIRM HICKS MUSE & CO JUMPED TO 20 FROM ITS OFFERING PRICE OF 17 A SHARE THE ISSUE WAS INCREASED TO 152 MILLION SHARES FROM A PLANNED 114 MILLION AND IN PRICE TO 16 FROM AN EXPECTED 14 ACE LTD A BERMUDABASED INSURER ROSE TO 28 5/8 FROM ITS 2750 A SHARE IPO PRICE THE STOCK HAD INITIALLY BEEN EXPECTED TO FETCH 2350 TO 2650 A SHARE THE ISSUE WAS RAISED TO 186 MILLION SHARES FROM A PREVIOUSLY FORECAST 142 MILLION LEUCADIA NATIONAL CLIMBED 1 7/8 TO 42 5/8 FIRST BOSTON ANALYST CHARLES GATES INITIATED COVERAGE OF THE NEW YORK INSURER'S SHARES WITH A BUY RATING HE SAID LEUCADIA HAS A RECORD OF SOLID GROWTH FOODMAKER ADDED 7/8 TO 9 3/8 LEHMAN BROTHERS ANALYST ERICK WASSERMAN UPGRADED HIS RATING ON THE SAN DIEGO FASTFOOD RESTAURANT OPERATOR TO OUTPERFORM FROM NEUTRAL THE STOCK IS STILL RATED HIGH RISK WEDNESDAY FOODMAKER FORECAST A SECONDQUARTER LOSS BLAMING THE EFFECTS OF A RECENT FOOD POISONING INCIDENT AT ITS JACKINTHEBOX OUTLETS GETTY PETROLEUM GAINED 2 TO 12 1/8 AFTER THE JERICHO NY COMPANY POSTED EARNINGS OF 54 CENTS A SHARE FOR THE FOURTH QUARTER ENDED JAN 31 UP FROM 26 CENTS A YEAR AGO THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 084 TO 41912 THERE WERE 301 ADVANCERS AND 255 DECLINERS 9303260071 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT OPENING ACTS ENTERTAINMENT NOTES FROM AROUND THE WORLD AMERICAN OFFERINGS TO THE WORLD OF SELFIMPROVEMENT ARE VERY POPULAR IN RUSSIA FROM JANE FONDA WORKOUTS TO TELEVANGELISM RUSSIANS TEND TO BELIEVE THAT IF THEY COULD ONLY FIND THE RIGHT PLAN EVERYTHING FROM HYPERINFLATION TO HYPERANXIETY COULD BE FIXED ALTHOUGH AMERICANS MAY FEEL LIKE FAT BUNDLES OF NEUROSES ROAMING A HOSTILE PLANET RUSSIANS THINK OF AMERICANS AS HEALTHY AND PSYCHOLOGICALLY STABLE THANKS TO ALL THE GOOD ADVICE THEY GET FROM BOOKS AND TV SO DALE CARNEGIE'S HOW TO WIN FRIENDS AND INFLUENCE PEOPLE WHICH HAS BEEN AVAILABLE IN RUSSIAN FOR SEVERAL YEARS GETS SNAPPED UP WHENEVER IT BECOMES AVAILABLE US EVANGELISTS ENJOY A HUGE AUDIENCE JIMMY SWAGGART HAD A WEEKLY MORNING TV SHOW FOR A WHILE BILLY GRAHAM DRAWS OVERFLOW CROWDS TO HUGE MOSCOW STADIUMS EVERY TIME HE VISITS A TALK SHOW HOST SAID RECENTLY WE HAD MARXISM WE HAD LENINISM NOW WE HAVE L RON HUBBARDISM LOOKING FOR A FESTIVAL HERE'S A LISTING OF SOME INTERNATIONAL ENTERTAINMENTRELATED GATHERINGS TAKING PLACE OVER THE NEXT YEAR THE MORE EXPOSURE THE BETTER THAT SEEMS TO BE THE MOTTO OF HOLLYWOOD'S PUBLICISTS BUT THE PUBLICISTS PEDDLING BASIC INSTINCT OVERSEAS LAST YEAR WERE MORTIFIED TO DISCOVER THAT TWO GERMAN PUBLICATIONS HAD TAKEN THAT MOTTO A BIT TOO LITERALLY MIFFED THAT SHARON STONE WOULDN'T SUBMIT TO AN EXCLUSIVE PHOTO SHOOT AND UNWILLING TO STICK WITH THE PUBLICISTAPPROVED STILLS STERN MAGAZINE MANAGED TO GET ITS HANDS ON A FEW KEY FRAMES FROM THE FILM WITHOUT EVER SETTING FOOT IN A MOVIE THEATER GERMAN AUDIENCES GOT TO SEE THE INFAMOUS INTERROGATIONROOM SHOT OF MS STONE THE GERMAN FILM MAGAZINE CINEMA WENT ONE STEP FURTHER WITH THE UNAUTHORIZED SNIPPETS RUNNING A BASIC INSTINCT SPREAD THAT LOOKED LIKE A COLLECTION OF PHOTOS SCRAPED OFF A CENSOR'S CUTTINGROOM FLOOR LAWYERS FOR CAROLCO PICTURES THE FILM'S PRODUCER IMMEDIATELY FIRED OFF THREATENING LETTERS COMPLAINING ABOUT THE PHOTOS ALL THE STILLS WERE RETURNED TO US AND THEY WERE NEVER USED AGAIN SAYS PUBLICIST MELANIE HODAL OF DENNIS DAVIDSON ASSOCIATES IN HOLLYWOOD IRONICALLY CAROLCO WAS MORE UPSET THAT THE PHOTOS WERE UNAUTHORIZED THAN THAT THEY WERE RACY THE BASIC INSTINCT SHOT THAT STERN RAN ON ITS COVER THE CONTENTS OF WHICH ARE BEST LEFT OUT OF A FAMILY NEWSPAPER WAS ACTUALLY APPROVED BY THE PUBLICISTS YOU THINK ARNOLD SCHWARZENEGGER IS POPULAR IN THE US FOR TRUE ARNOLDMANIA GO TO RUSSIA THE RUMOR IN RUSSIA IN FACT IS THAT ARNOLD IS ACTUALLY RUSSIAN AND THAT HIS MOTHER IS A FORMER RUSSIAN SPY HE'S SO BELOVED THAT HE HAS EVEN BECOME HONORED AS THE SUBJECT OF SOME NEW RUSSIAN JOKES FOR EXAMPLE ARNOLD IS STANDING IN A CROWDED MOSCOW TROLLEY BUS WHEN THE WOMAN BEHIND HIM ASKS THE STANDARD QUESTION ARE YOU GETTING OFF AT THE NEXT STOP YES ANSWERS ARNOLD AND THE PEOPLE IN FRONT OF YOU ARE THEY ALSO GETTING OFF ASKS THE WOMAN YES ANSWERS ARNOLD BUT THEY DON'T KNOW IT YET OR ARNOLD IS VISITING HIS MISTRESS WHEN HER HUSBAND SUDDENLY ARRIVES HOME THE ILLICIT LOVERS SCURRY AROUND AND ARNOLD HIDES IN THE CLOSET THE HUSBAND STARTS SEARCHING FURIOUSLY UNDER THE BED BEHIND THE CURTAINS HE THROWS OPEN THE DOOR TO THE CLOSET AND MEETS THE SCOWLING FACE OF ARNOLD HAVE YOU FOUND ME ASKS ARNOLD WITH A GROWL OH NO SAYS THE SUDDENLY MEEK HUSBAND I'D BETTER GO TO THE KITCHEN AND KEEP LOOKING TWIN PEAKS FANS COME TO TOKYO TO WATCH THE SEQUEL AGENT COOPER A MAIN CHARACTER IN THE POPULAR US TELEVISION SERIES IS HOT ON THE TRAIL TO SOLVE ANOTHER MYSTERY BUT THERE'S A TWIST THE MISSING WOMAN IS A JAPANESE NAMED ASAMI AND KYLE MACLACHLAN WHO PLAYS COOPER SIPS A CAN OF COCACOLA JAPAN CO'S GEORGIA COFFEE THE NEW PROPS CAN PROBABLY BE EXPLAINED WITH ONE WORD MONEY COKE'S JAPANESE UNIT PERSUADED DAVID LYNCH DIRECTOR OF TWIN PEAKS TO MAKE A FOURPART TV COMMERCIAL TO PUSH THE COMPANY'S CANNED COFFEE A POPULAR DRINK IN JAPAN THE COMMERCIALSTHE FIRST OF WHICH WENT ON THE AIR IN JAPAN IN JANUARYSTAR SOME OF THE OLD CHARACTERS THIS GEORGIA IS A DAMN FINE COFFEE SAYS MR MACLACHLAN GRIPPING THE CAN WHILE THE TWIN PEAKS THEME PLAYS IN THE BACKGROUND THE 30SECOND ADS TREAT VIEWERS TO MANY OF THE LOCATIONS AND CAST THAT WERE AS POPULAR IN JAPAN AS IN THE US AS AGENT COOPER DRINKS HIS COFFEE THE MYSTERIOUS LOG LADY SMILES WHILE HOLDING HER TRADEMARK PIECE OF WOOD CLUES FOR ASAMI'S WHEREABOUTS EMERGE AT THE DOUBLE R DINER WHERE COOPER OFTEN DEVOURED CHERRY PIE IN THE ORIGINAL SERIES AND AFTER SIPPING GEORGIA COFFEE SHELLY THE DINER'S WAITRESS SUDDENLY RECALLS A MESSAGE THE MISSING WOMAN LEFT BEHIND SOMETIMES A TREND OVERSEAS IS A TREND SIMPLY BECAUSE IT HAS SOMETHING TO DO WITH AMERICA IN MOSCOW LOCALLY MADE TSHIRTS SPORT A WIDE SELECTION OF BART SIMPSON PRINTS EVEN THOUGH THE CARTOON HAS NEVER APPEARED ON RUSSIAN TELEVISION AND VERY FEW PEOPLE HAVE EVER HEARD OF BART AT FIRST GLANCE IT MIGHT SEEM THAT THE MOST POPULAR MOVIE STAR IN THAILAND IS AL PACINO AND THAT HIS MOST POPULAR MOVIE IS SERPICO THE 1970S FILM ABOUT A NEW YORK CITY COP BLACKANDWHITE DECALS OF MR PACINO AS THE BEARDED TOUSLEHAIRED FRANK SERPICO WITH HIS RAY BANS PUSHED UP ON TOP OF HIS HEAD ADORN THOUSANDS OF MOTORCYCLES TUKTUKS THREEWHEELED OPENAIR TAXIS AND CABS IT IS THE IMAGE TOUGH GUYS ALL OVER THAILAND LOOK UP TO UNFORTUNATELY TIME HAS BLURRED MEMORIES OF THE MOVIE AND ITS STAR IN AN INFORMAL POLL NONE OF THE MEMBERS OF THREE DIFFERENT MOTORCYCLE GANGS COULD NAME THE FILM AND ONLY ONE CORRECTLY NAMED MR PACINO THAT DOESN'T NECESSARILY DIMINISH MR PACINO'S IMAGE HE WAS MOST OFTEN CONFUSED WITH SYLVESTER STALONE THAT'S PERHAPS UNDERSTANDABLE BECAUSE THE DECAL SHOWS ONLY MR PACINO'S FACE IN ADDITION MOST OF THE MOTORCYCLISTS WERE INFANTS WHEN THE MOVIE WAS RELEASED AND DESPITE LAX COPYRIGHT LAWS THAT ALLOW STREET VENDORS TO SELL THE LATEST MOVIES ON VIDEO FOR UNDER 5 SERPICO IS NOT ONE OF THE TAPES AVAILABLE SO WHY IS MR PACINO'S FACE EVERYWHERE THE ONLY EXPLANATION IS THAT IT IS ONE OF THE LAST REMNANTS OF A LARGE US MILITARY PRESENCE IN THAILAND IN THE 1970S AT THE END OF THE VIETNAM WAR AMONG THE MOST COMMON TV FARE IN GERMANY ARE GOOD OLD AMERICAN QUIZ SHOWS BUT THEY AREN'T TRANSPLANTED WHOLESALE MOST OF THEM NEED A BIT OF TINKERING TO MAKE IT IN MUNICH NEW NAMES FOR INSTANCE FAMILY FEUD BECOMES FAMILY DUEL THE PRICE IS RIGHT IS CALLED THE PRICE IS HOT AND JEOPARDY IS RISKY TONY TINTES A SPOKESMAN FOR RTLPLUS A PRIVATE TELEVISION STATION THAT BROADCASTS THE GAME SHOWS SAYS THAT ANOTHER DIFFERENCE IS IN THE AMOUNT OF PRIZES AWARDED IT'S A GERMAN CHARACTER TRAIT TO BELIEVE YOU MUST EARN WHAT YOU GET HE SAYS THE PRIZES CAN'T BE AS EXORBITANT AS ON AMERICAN SHOWS HE ADDS THAT THE BIGGEST DIFFERENCE OF ALL IS THE CONTESTANTS THEMSELVES AMERICANS HOLLER AND SCREAM ON THESE SHOWS HE SAYS WHILE GERMANS EVEN THOUGH THEY'RE EXCITED ACT RESERVED AFRAID OF EMBARRASSING THEMSELVES ON TELEVISION JAPANESE TOURISTS VISITING UNIVERSAL STUDIOS HOLLYWOOD ARE AMAZED TO DISCOVER THAT ONE OF THEIR FAVORITE ACTORS TOM SELLECK SPEAKS SUCH GOOD ENGLISH THE GERMANS TWITTER WHEN THEY SEE THE SET FROM THE DORIS DAY CLASSIC THE THINGS THAT WOMAN DID AMERICANS KNOW IT AS THE THRILL OF IT ALL THE FRENCH MAY BE SURLY BUT THEY ARE WELCOME AT UNIVERSAL BECAUSE THEY TIP THE TOUR GUIDES UNIVERSAL OWNED BY JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO GIVES TOURS OF ITS 420ACRE LOT IN SPANISH FRENCH ITALIAN GERMAN JAPANESE MANDARIN AND CANTONESE AND GUIDES ADJUST THEIR SPIELS TO REGIONAL TASTES FRENCH VISITORS LIKE TO HEAR ABOUT TV'S TRENCHCOAT CLAD COLUMBO AND SNAP LOTS OF PHOTOS OF HIS BEATUP PEUGEOT RUSTING ON THE BACK LOT THE JAPANESE PREFER LASSIE AND ARE A BIT SHOCKED TO LEARN THAT SHE WAS A HE GERMANS LIKE TRIVIA ABOUT SUCH MOVIES AS THOSE WHO GO THROUGH HELL THE DEER HUNTER AND THAT QUIRKY NEW TV SHOW OF ALL PLACES ALASKA NORTHERN EXPOSURE BUT NOT EVERYTHING TRANSLATES GERMAN VISITORS DRAW A COMPLETE BLANK WHEN THEY WALK INTO THE LUCY MUSEUM SAYS MIKE SINGTON WHO IS IN CHARGE OF UNIVERSAL'S TOUR GUIDES THE REST OF THE WORLD MAY LOVE LUCILLE BALL BUT NOT GERMANY NONE OF OUR SITCOMS PLAY IN GERMANY BECAUSE THE GERMAN HUMOR IS MUCH MORE SUBDUED HE SAYS HEY I WAS WATCHING THE GAME FOR MANY US CABLE OPERATORS EXPANDING IN FOREIGN COUNTRIES IT'S NOT THE RULES HOLDING THEM BACK IT'S THE RULEBREAKERS IN INDIA AND SEVERAL OTHER COUNTRIES WITH SCANT CABLE DEVELOPMENT SOME SCOFFLAW ENTREPRENEURS HAVE BECOME MINICABLE OPERATORS ERECTING A SATELLITE DISH AND WIRING UP ENTIRE NEIGHBORHOODS WITH A ROLL OF COAXIAL CABLE THAT'S GREAT FOR THE CONSUMERS BUT THERE IS A DRAWBACK THE ONLY PROBLEM SAYS ONE CABLEINDUSTRY WATCHER IS THAT EVERYBODY'S CHANNEL CHANGES AT THE SAME TIME TO PREVENT AMERICAN TELEVISION SERIES FROM TAKING OVER LOCAL TELEVISION FRENCH LAW LIMITS THE NUMBER OF FOREIGN SERIES THAT CAN BE SHOWN THE LAW HAS WORKEDUP TO A POINT WHEN TELE 7 JOURS A TELEVISION MAGAZINE RECENTLY CALCULATED WHICH SERIES ARE THE MOST POPULAR BY AVERAGING THE AUDIENCE SHARE OF THE FIVE MOST POPULAR SHOWS OF EACH SERIES TWO LOCALLY MADE DETECTIVE SHOWS TOPPED THE LIST BUT THE NEXT FIVE WERE AMERICAN THEY WERE HUNTER TJ HOOKER SANTA BARBARA THE YOUNG AND THE RESTLESS AND KNOTS LANDING 9303260070 930326 HEARD ON THE STREET TAMBRANDS' GATHERING WITH ANALYSTS LEAVES QUEASY FEELINGS ABOUT COMPANY'S PROSPECTS BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN A BIGNAME STOCK PLUNGES 11 WITHIN DAYS BARGAIN HUNTERS OFTEN WILL RUSH TO BUY DRIVING THE STOCK RIGHT BACK UP BUT IN THE CASE OF TAMBRANDS DON'T COUNT ON IT THE COMPANY HELD A CLOSEDDOOR MEETING WITH ANALYSTS TUESDAY MORNING THE STOCK THEN TOOK A DIVE BEFORE LEVELING OFF YESTERDAY AT 54 3/4 UNCHANGED THAT'S ABOUT ALL ANYBODY AGREES ON COMPANY OFFICIALS INSIST THAT ON TUESDAY THEY PRESENTED A GENERALLY BULLISH OUTLOOK ON EARNINGS FOR THE MAKER OF TAMPAX THE LEADING TAMPON BRAND CHIEF EXECUTIVE MARTIN EMMETT REAFFIRMED THAT THE 15 EARNINGSGROWTH TARGET IS OUR PLAN FOR 1993 INSISTS PAUL E KONNEY SENIOR VICE PRESIDENT WE HAVE INCREASED MARGINS SUBSTANTIALLY OVER THE PAST SEVERAL YEARS AND PLAN TO CONTINUE THAT INCREASE SO WHY THE BIG SELLOFF IN THE STOCK LISTENING TO MR EMMETT'S REMARKS WALL STREET THOUGHT IT HEARD A RETREAT FROM HIS PREVIOUSLY STATED PROFIT GOALS FOR INSTANCE MR EMMETT TOLD ANALYSTS THAT WHILE THE COMPANY STANDS BY ITS 15 GOAL THERE ARE ECONOMIC CONDITIONS OUTSIDE OUR CONTROL THAT MIGHT AFFECT OUR ABILITY TO ACHIEVE THE TARGET ACCORDING TO MR KONNEY AMONG THE VARIABLES MR KONNEY SAYS ARE THE RECESSION IN EUROPE THE LIKELIHOOD OF AN EXPENSIVE NATIONAL HEALTH PLAN AND POLITICAL UNCERTAINTY IN RUSSIA THEY DIDN'T FULLY ANSWER PEOPLE'S QUESTIONS RELATING TO THE LONGTERM GROWTH RATE SAYS DIANA TEMPLE ANALYST AT SALAMON BROTHERS WHO STILL HAS A BUY ON THE STOCK ANALYSTS WANTED CERTAIN ANSWERS TO VERY SPECIFIC QUESTIONS ABOUT MARGINS BUT MANAGEMENT WOULDN'T MAKE AFFIRMATIVE STATEMENTS THAT BOTHERED PEOPLE THE MEETING SPARKED A HEAVY ROUND OF NUMBERCRUNCHING WITH ANALYSTS CARVING AWAY AT THEIR ESTIMATES OF 1993 EARNINGS GROWTH ON TUESDAY TAMBRANDS STOCK SANK 4 1/8 POINTS TO A 52WEEK LOW IT SHED A FURTHER 2 7/8 WEDNESDAY AS NEWSWIRES REPORTED THAT ANALYST JACK SALZMAN OF GOLDMAN SACHS HAD PULLED TAMBRANDS OFF HIS RECOMMENDED LIST THE STOCK HAS LEVELED OFF AT ABOUT 18 TIMES REPORTED EARNINGS CLOSE TO THE AVERAGE MARKET MULTIPLE FOR BIG BOARD COMPANIES BEFORE THIS WEEK'S MEETING SOME ANALYSTS HAD BEEN PROJECTING TAMBRANDS 1993 EARNINGS PER SHARE AS HIGH AS 360 HITTING THAT NUMBER WOULD HAVE MEANT AN 18 RISE IN FULLYEAR NET INCOME ANALYSTS CLEARLY AREN'T IN THAT BALLPARK NOW AND THE MOST BEARISH MEMBERS OF THE GROUP LOOK FOR A PROFIT INCREASE AS SMALL AS 10 COMPETITION IS WEAKENING TAMBRANDS' HOLD ON THE 700 MILLION TAMPON MARKET SOME ANALYSTS SAY THOUGH THE NO 1RANKED TAMPON MAKER STILL HOLDS ABOUT 52 OF THE MARKET SUCH RIVALS AS PLAYTEX FP GROUP AND JOHNSON & JOHNSON HAVE BEEN COMING ON STRONG ALICE BEEBE LONGLEY ANALYST AT DONALDSON LUFKIN & JENRETTE SAYS THAT AT TUESDAY'S MEETING MR EMMETT EXPRESSED CONCERN ABOUT COMPETITION MORE THAN HE'S EXPRESSED BEFORE SHE HAS REDUCED HER FULLYEAR PROFIT ESTIMATE FOR TAMBRANDS TO 350 A SHARE FROM 355 ACCORDING TO NIELSEN MARKETING RESEARCH TAMPAX POSTED A 38 INCREASE IN DOLLAR SALES VOLUME TO 3353 MILLION FOR THE 52 WEEKS THROUGH FEB 20 IN COMPARISON PLYATEX'S SALES JUMPED 50 TO 1958 MILLION WHILE THOSE OF JOHNSON & JOHNSON'S OB BRAND ROSE 55 TO 634 MILLION CHEAPER PRIVATELABEL PRODUCTS HOLD BARELY 1 OF THE MARKET BUT ARE SURGING WITH A 157 SALES GAIN IN THE PERIOD TO 48 MILLION FOR YEARS ANALYSTS SAY PLAYTEX HEWED TO A CLASSNOTMASS STRATEGY CHARGING AT TIMES 30 MORE PER UNIT THAN COMPARABLE TAMPAX PRODUCTS BUT IN JANUARY PLAYTEX SLASHED ITS PRICES TO ABOUT MATCH THOSE OF TAMPAX TAMBRANDS HAD NO COMPETITION IT DOMINATED THE CATEGORY FOR YEARS SAYS JOHN LISTER CHIEF EXECUTIVE OF LISTER BUTLER INC A BRAND CONSULTANT SUDDENLY PLAYTEX IS PRESENTING ITSELF MUCH MORE AGGRESSIVELY TAMBRANDS WILL BE FIGHTING BACK BY BOOSTING AD OUTLAYS AND LAUNCHING SATIN TOUCH A NEW ROUNDEDTIP TAMPON BUT THE PROSPECT OF TAMBRANDS NEARLY DOUBLING ITS ADVERTISING BUDGET ALSO HAS ANALYSTS EDGY THEY FEAR THAT PROFIT MARGINS WILL ERODE THE COMPANY WAS IMPLYING THAT THE GROSSMARGIN EXPANSION WILL BE OFFSET BY INCREASES IN MARKETING EXPENDITURES SAYS MS LONGLEY ADDING THAT THE COMPANY CURRENTLY GENERATES IMPRESSIVE 17 NET PROFIT MARGINS TAMBRANDS' MR KONNEY BRUSHES OFF SUCH FEARS INSISTING THAT THE COMPANY'S INCREASED FOCUS ON MADISON AVENUE WON'T HURT THE BOTTOM LINE HE SAYS FUNDS FOR IMAGEBOOSTING WILL COME FROM COSTCUTTING IN OTHER AREAS THE NOTION THAT TAMBRANDS IS GOING TO INCREASE ADVERTISING SPENDING AT THE EXPENSE OF MARGINS ISN'T TRUE HE SAYS SO HOW DOES HE EXPLAIN THE SELLOFF IN THE STOCK AFTER TUESDAY'S MEETING IT WAS A MISUNDERSTANDING HE SAYS YEAR ENDED DEC 31 1992 FOURTH QUARTER DEC 31 1992 9303260069 930326 TECHNOLOGY BRIEF CRAY RESEARCH INC SUPERCOMPUTER SOFTWARE AVAILABLE FOR WORKSTATIONS CRAY RESEARCH INC SAID IT IS MAKING ONE OF ITS SUPERCOMPUTER SOFTWARE PROGRAMS AVAILABLE FOR USE ON WORKSTATIONS A FIRST FOR THE SUPERCOMPUTER MANUFACTURER THE EAGAN MINN COMPANY SAID A VERSION OF ITS UNICHEM MOLECULAR MODELING PROGRAM CAN NOW BE USED ON SILICON GRAPHICS INC WORKSTATIONS THE WORKSTATIONS ARE DESKTOP COMPUTERS THAT ARE MUCH CHEAPER THAN MULTIMILLION DOLLAR SUPERCOMPUTERS AND MUCH MORE POWERFUL THAN PERSONAL COMPUTERS LATER THIS YEAR CRAY RESEARCH PLANS TO PROVIDE VERSIONS OF THE PROGRAM THAT CAN BE USED ON OTHER MANUFACTURERS' MACHINES WITH UNICHEM ON THE WORKSTATION USERS CAN UTILIZE THE PROCESSING POWER ON THEIR DESKTOP AND WHEN THEIR PROBLEMS BECOME SO LARGE IT'S NOT PRACTICAL FOR THE DESKTOP THEY HAVE A TRANSPARENT TRANSITION TO SUPERCOMPUTING SAID SARA GRAFFUNDER DIRECTOR OF APPLICATIONS SOFTWARE DEVELOPMENT 9303260068 930326 WHO'S NEWS WEILL EXERCISED PRIMERICA STOCK OPTIONS WITH VALUE OF 638 MILLION LAST YEAR BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SANFORD WEILL THE CHAIRMAN OF PRIMERICA CORP EXERCISED STOCK OPTIONS VALUED AT 638 MILLION LAST YEAR AND RECEIVED MORE OPTIONS THAT IF HE WERE ALLOWED TO EXERCISE NOW WOULD BE VALUED AT AN ADDITIONAL 70 MILLION THOSE NUMBERS DON'T INCLUDE MR WEILL'S 957000 SALARY 16 MILLION IN BONUS AND 1 MILLION IN STOCK THAT HE CAN'T SELL RIGHT AWAY MR WEILL'S COMPENSATION LAST YEAR SHOWS HOW LUCRATIVE SOCALLED RELOAD PACKAGES CAN BE FOR EXECUTIVES PRIMERICA'S VERSION GRANTS NEW STOCK OPTIONS TO EXECUTIVES ANY TIME THEY CASH IN OPTIONS THEY ALREADY OWN RELOADS ARE PART OF THE MOVEMENT TO GET MANAGERS TO WORK HARDER BY GIVING THEM BIGGER STAKES IN THE COMPANIES THEY RUN INVESTORS WANT TO MAKE SURE THAT EXECUTIVES DON'T JUST EXERCISE THEIR OPTIONS AND WALK AWAY FROM THE COMPANY SAID STEVEN SABOW A CONSULTANT WITH WILLIAM M MERCER A BENEFITS CONSULTING FIRM WHILE RELOADS ARE BECOMING COMMON THE SIZE OF THE GRANT MR WEILL RECEIVED IS ANYTHING BUT TYPICAL MR SABOW SAID ACCORDING TO THE COMPANY'S PROXY STATEMENT MADE PUBLIC YESTERDAY MR WEILL EXERCISED FIVE MILLION OPTIONS ON PRIMERICA STOCK LAST YEAR THEN VALUED AT 638 MILLION THOSE OPTIONS DATE BACK TO 1986 WHEN MR WEILL BOUGHT COMMERCIAL CREDIT CORP THE FORERUNNER OF PRIMERICA THE RELOAD PLAN ALLOWED MR WEILL TO REPLACE MOST OF THOSE OPTIONS ACCORDING TO THE DOCUMENT MR WEILL WAS GRANTED 365 MILLION MORE OPTIONS AFTER EXERCISING THOSE HE ALREADY OWNED THOSE NEW OPTIONS CARRY AN AVERAGE EXERCISE PRICE OF ABOUT 27 A SHARE WHICH REFLECTS PRIMERICA'S STOCK PRICE AT THE TIME OF THE AWARD LAST YEAR NOW THE STOCK IS VALUED AT A LOT MORE ON THE NEW YORK STOCK EXCHANGE YESTERDAY PRIMERICA CLOSED AT 46125 DOWN 25 CENTS THE DIFFERENCE BETWEEN YESTERDAY'S CLOSING PRICE AND THE EXERCISE PRICE INDICATES MR WEILL COULD CASH OUT FOR AN ADDITIONAL 70 MILLION IF ALL THE OPTIONS COULD BE EXERCISED IMMEDIATELY HOWEVER ONLY 15 MILLION OF THOSE OPTIONS ARE ELIGIBLE FOR IMMEDIATE EXERCISE AND ARE CURRENTLY VALUED AT ABOUT 287 MILLION THE REST WILL BE FULLY VESTED WITHIN FIVE YEARS AT THE TIME THE OPTIONS WERE GRANTED HE CAN ARGUE THAT THEY HAD NO VALUE MR SABOW SAID ADDING THAT THE EXERCISE PRICE AND THE STOCK PRICE WERE THEN IDENTICAL THE DOCUMENT DISCLOSES THAT AT YEAR END MR WEILL STILL OWNED 24 MILLION SHARES IN THE COMPANY WHICH THIS MONTH AGREED TO BUY THE SHEARSON BROKERAGE HOUSE FROM AMERICAN EXPRESS CO FOR ABOUT 1 BILLION A PRIMERICA SPOKESMAN SAID MR WEILL SOLD A MAJOR PORTION OF HIS STOCK DURING THE YEAR IN ORDER TO PAY FOR EXERCISING THE OPTIONS AND TO PAY TAXES ON THE GAINS THE COMPANY DIDN'T DISCLOSE HOW MANY SHARES MR WEILL SOLD ALTHOUGH IT WAS AT LEAST 26 MILLION SHARES THE 24 MILLION SHARES HE HELD AT YEAR END HAVE SINCE JUMPED IN VALUE TO 1107 MILLION FROM 648 MILLION OTHER PRIMERICA EXECUTIVES ALSO ENJOYED TREMENDOUS GAINS LAST YEAR FRANK ZARB THE HEAD OF PRIMERICA'S SMITH BARNEY UPHAM HARRIS BROKERAGE UNIT EXERCISED OPTIONS VALUED AT 42 MILLION ROBERT LIPP HEAD OF ITS COMMERCIAL CREDIT UNIT EXERCISED OPTIONS VALUED AT 54 MILLION PRESIDENT JAMES DIMON EXERCISED OPTIONS VALUED AT 62 MILLION IN ADDITION TO THE BROKERAGE BUSINESS PRIMERICA OPERATES A LIFE INSURANCE COMPANY A CONSUMER FINANCE COMPANY AND OWNS 27 OF TRAVELERS CORP A HARTFORD CONN INSURER 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 9303260067 930326 BUSINESS BRIEF BOLAR PHARMACEUTICAL CO COMPANY NAME IS CHANGED TO CIRCA PHARMACEUTICALS BOLAR PHARMACEUTICAL CO CHANGED ITS NAME TO CIRCA PHARMACEUTICALS INC CITING PLANS FOR A NEW DIRECTION THE COMPANY'S SHARES BEGIN TRADING TODAY UNDER THE NEW SYMBOL RXC ON THE AMERICAN STOCK EXCHANGE BOLAR SAID IT DECIDED TO CHANGE ITS NAME BECAUSE IT INTENDS TO BECOME A DIVERSIFIED PHARMACEUTICALS FIRM WITH A FOCUS ON INNOVATIVE DOSAGE FORMS AND NEW DRUG DEVELOPMENT THROUGH JOINT VENTURES LICENSING AGREEMENTS ACQUISITIONS AND THE CONTINUED SUPPORT OF OUR OWN RESEARCH AND DEVELOPMENT PROGRAM A SPOKESWOMAN SAID THE CHANGE WAS NOT RELATED TO BOLAR'S PAST LEGAL TROUBLES AS A MAKER OF GENERIC DRUGS OVER THE LAST SEVERAL YEARS BOLAR AND SOME FORMER OFFICIALS WERE CHARGED BY THE FEDERAL GOVERNMENT WITH NUMEROUS ILLEGAL ACTS IN THE MAKING AND SELLING OF GENERICEQUIVALENT DRUGS BOLAR ALSO WAS SUED BY SHAREHOLDERS AND A MAKER OF BRANDED DRUGS BOLAR BASED IN COPIAGUE NY HAS ALREADY PAID FEDERAL FINES AND SETTLED THE CIVIL CASES AGAINST IT AND SEVERAL FORMER OFFICIALS HAVE PLEADED GUILTY AND BEEN GIVEN VARIOUS SENTENCES FOR THEIR ROLES IN THE GENERICDRUG SCANDAL 9303260066 930326 FINANCING BUSINESS FOREST OIL CORP FOREST OIL CORP SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 10 MILLION NEW COMMON SHARES AND TO HAVE HOLDERS OF ALL 35 MILLION SHARES OF ITS CLASS B STOCK SWAP THEM FOR COMMON SHARES CURRENTLY THE DENVERBASED OIL AND GAS EXPLORATION COMPANY HAS 113 MILLION COMMON SHARES OUTSTANDING IF APPROVED BY HOLDERS EACH CLASS B SHARE WILL BE SWAPPED FOR 11 SHARES OF COMMON STOCK THE CLASS B STOCK ENTITLES HOLDERS TO 10 VOTES PER SHARE WITHIN THE COMPANY IF THE EXCHANGE AND THE OFFERING ARE COMPLETED FOREST OIL WOULD HAVE A TOTAL OF 252 MILLION COMMON SHARES OUTSTANDING PROCEEDS FROM THE OFFERING WILL BE USED MAINLY TO REDUCE LONGTERM DEBT SEPARATELY THE COMPANY INCREASED THE SIZE OF ITS BOARD TO 14 MEMBERS BY ADDING DONALD H ANDERSON PRESIDENT OF ASSOCIATED NATURAL GAS CORP AND RICHARD J CALLAHAN EXECUTIVE VICE PRESIDENT OF US WEST INC 9303260065 930326 FIVE INSURERS ARE CHARGED OVER DISMISSAL OF AGENT SACRAMENTO THE CALIFORNIA DEPARTMENT OF INSURANCE HAS CHARGED FIVE LIFE INSURANCE COMPANIES WITH UNFAIRLY FIRING AN AGENT WHO OFFERED HIS CUSTOMERS COMMISSION REBATES THE COMPANIES CHARGED ARE PRUDENTIAL INSURANCE CO OF AMERICA METROPOLITAN LIFE INSURANCE CO AND TRANSAMERICA CORP UNITS TRANSAMERICA LIFE & ANNUITY INSURANCE CO TRANSAMERICA OCCIDENTAL LIFE INSURANCE CO AND TRANSAMERICA ASSURANCE CO THE STATE SAID THESE INSURERS HAD TERMINATED THE SERVICES OF MARK WHITE AN AGENT IN SAN DIEGO IN 1990 SOLELY BECAUSE HE OFFERED HIS CUSTOMERS REBATES ON HIS SALES COMMISSIONS SUCH REBATES WERE MADE ALLOWABLE IN CALIFORNIA IN 1988 COMMISSION REBATING BRINGS GREATER COMPETITION TO THE INSURANCE MARKETPLACE AND ALLOWS CUSTOMERS TO REAP SIGNIFICANT SAVINGS CALIFORNIA'S INSURANCE COMMISSIONER JOHN GARAMENDI SAID IN A STATEMENT COMPANIES THAT ATTEMPT TO PROHIBIT REBATING BY FIRING HARASSING OR TAKING OTHER MEASURES AGAINST THEIR AGENTS WILL NOT BE TOLERATED THE FIVE INSURERS WILL RECEIVE AN OPPORTUNITY TO REBUT THE CHARGE ON AUG 16 AT AN ADMINISTRATIVE HEARING 9303260064 930326 MARKETING BRIEF DISCOVERY COMMUNICATIONS INC COMPANY CREATES SUBSIDIARY TO OFFER TV PROGRAM MENU DISCOVERY COMMUNICATIONS INC SAID IT HAS CREATED A SUBSIDIARY YOUR CHOICE TV INC TO DEVELOP AND OFFER ELECTRONICALLY MENUS OF AVAILABLE CABLE TELEVISION PROGRAMMING WITH THE CABLE INDUSTRY PROMISING TO DELIVER 500 CHANNELS OF PROGRAMMING USING NEW DIGITAL COMPRESSION TECHNOLOGY STARTING NEXT YEAR VIEWERS COULD FIND THEMSELVES OVERWHELMED TRYING TO DETERMINE WHAT PROGRAMS ARE AVAILABLE THE SUBSIDIARY PLANS TO DEVELOP A REMOTE CONTROL DEVICE INTERACTING WITH A CABLE CONVERTER BOX THAT WOULD PROVIDE AN ELECTRONIC GUIDE SORTING OUT CATEGORIES SUCH AS DOCUMENTARIES SPORTS AND CHILDREN'S PROGRAMMING THE SUBSIDIARY STARTS OFF WITH THE SUPPORT OF THREE DISCOVERY SHAREHOLDERS CABLE OPERATORS TELECOMMUNICATIONS INC COX CABLE COMMUNICATIONS INC AND NEWHOUSE COMMUNICATIONS AS WELL AS LETTERS OF INTENT FROM OTHER CABLE OPERATORS BUT IT WILL BE SEVERAL YEARS BEFORE DIGITAL COMPRESSION REACHES THE MAJORITY OF TELEVISION HOMES DISCOVERY IS A PRIVATELY HELD MULTIMEDIA COMPANY 9303260063 930326 INTERNATIONAL BRIEF FOKKER NV DUTCH AIRCRAFT FIRM PLANS TO TRIM STAFF 17 IN 1993 FOKKER NV THE DUTCH AIRCRAFT MAKER SAID IT WILL CUT ITS WORK FORCE 17 OR 2118 PEOPLE THIS YEAR OF THE CUTS 1790 WILL COME FROM LAYOFFS ATTRITION SHOULD COUNT FOR THE REST FOKKER SAID CURRENTLY THE COMPANY EMPLOYS 12500 FOKKER JOINS A LONG LIST OF AEROSPACE COMPANIES FORCED TO MAKE JOB CUTS INCLUDING DAIMLERBENZ AG'S DEUTSCHE AEROSPACE AG UNIT WHICH RECENTLY AGREED TO BUY A 51 STAKE IN FOKKER OFFICIALS FOR FOKKER AND DEUTSCHE AEROSPACE SAID THERE IS NO LINK BETWEEN THE ACQUISITION AND THE FOKKER JOB CUTS FOKKER'S 1992 RESULTS ARE DUE OUT NEXT WEEK AND ANALYSTS EXPECT THEM TO REFLECT THE INDUSTRY'S DIFFICULTIES THE COMPANY'S NET INCOME IS EXPECTED TO PLUNGE TO ABOUT 10 MILLION GUILDERS 54 MILLION FROM 87 MILLION GUILDERS A YEAR EARLIER FOKKER HOPES TO SAVE 200 MILLION GUILDERS IN WAGES WITH THE JOB CUTS THE COMPANY IS ALSO LOOKING TO CARVE AN ADDITIONAL 70 MILLION GUILDERS OUT OF ITS ANNUAL SPENDING THROUGH VARIOUS OTHER SPENDING CUTS 9303260062 930326 BUSINESS BRIEF EASTMAN KODAK CO KEPS UNIT IS RESTRUCTURED AFTER EFFORTS TO SELL IT FAIL EASTMAN KODAK CO ROCHESTER NY SAID IT RESTRUCTURED ITS TINY KEPS UNIT BASED IN BILLERICA MASS AFTER UNSUCCESSFUL ATTEMPTS TO SELL IT THE UNPROFITABLE UNIT WITH 100 WORKERS MAKES COLOR IMAGING HARDWARE AND SOFTWARE AND IS PART OF KODAK'S CORE IMAGING BUSINESS THREE SENIOR EXECUTIVES RESIGNED THE EXECUTIVES PRESIDENT RICHARD CLOSE VICE PRESIDENT OF OPERATIONS RALPH LAUNDRY AND VICE PRESIDENT JIM MCELHENNEY PROBABLY WON'T BE REPLACED A KODAK SPOKESMAN SAID JOHN A FLORENTINE VICE PRESIDENT OF INTEGRATION SERVICE AND SALES FOR KEPS WILL BE RESPONSIBLE FOR SERVING THE UNIT'S CURRENT CUSTOMERS DON STRICKLAND GENERAL MANAGER AND VICE PRESIDENT OF KODAK'S ELECTRONIC IMAGING PLATFORM CENTER WILL BE RESPONSIBLE FOR DEVELOPING SOFTWARE AT THE UNIT 9303260061 930326 GERMANY'S ECONOMICS MINISTER REXRODT SEES RECESSION AS CHANCE TO AID INDUSTRY BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN GUENTER REXRODT SEES GERMANY'S RECESSION AS A SERIOUS CHALLENGE BUT ALSO AS AN OPPORTUNITY IT'S A GREAT CHANCE TO SHED THE FAT THAT BUILT UP IN SOME INDUSTRIES OVER THE YEARS SAYS BONN'S 42YEAROLD ECONOMICS MINISTER MR REXRODT WHO STEPPED INTO THE JOB IN JANUARY CONTENDS GERMANY CAN USE THE DOWNTURN TO RESTRUCTURE WEAK INDUSTRIES SUCH AS TEXTILES AND STEEL AND PUSH THROUGH OTHER PAINFUL ECONOMIC CHANGES THAT WOULD HAVE BEEN UNTHINKABLE IN BETTER TIMES NEEDLESS TO SAY MR REXRODT DESERVES HIS REPUTATION AS AN OPTIMIST SPEAKING IN AN INTERVIEW THE FORMER BANKER PREDICTS GERMANY AS A WHOLE WILL RETURN TO POSITIVE ECONOMIC GROWTH IN 1994 BUT ADDS THE IMPORTANT THING IS THAT THE WORST OF GERMANY'S RECESSION WILL BE OVER BY THE END OF THIS YEAR WE ALSO EXPECT A RECOVERY OF THE GLOBAL ECONOMY HE SAYS THERE'S GOOD REASON MR REXRODT SOUNDS SO UPBEAT IN GERMANY THE ECONOMICS MINISTRY HAS FEW REAL POWERS TO GUIDE THE ECONOMY SUCH TOOLS AS CONTROL OVER MONEY AND CREDIT ARE FIRMLY IN THE HANDS OF THE FINANCE MINISTRY SO BONN'S ECONOMICS MINISTER IS LEFT LARGELY PLAYING THE ROLE OF CHEERLEADER PROMOTING BUSINESS CONFIDENCE AND HELPING SHAPE THE BROAD OUTLINES OF INDUSTRIAL POLICY MR REXRODT ADAPTED QUICKLY TO THE JOB WHEN HIS PREDECESSOR JUERGEN MOELLEMANN RESIGNED IN THE WAKE OF AN EMBARRASSING INFLUENCEPEDDLING SCANDAL MR REXRODT WAS WORKING AT THE TREUHANDANSTALT IN BERLIN THE TRUST AGENCY WHICH SELLS OFF FORMER EAST GERMAN BUSINESSES MR REXRODT'S WORK AT THE TREUHANDANSTALT AND HIS BACKGROUND AS A FREEMARKETORIENTED FREE DEMOCRAT HELP EXPLAIN HOW HE APPROACHES HIS NEW RESPONSIBILITIES MR REXRODT SEES HIS TASK FOCUSED ON SALVAGING EASTERN GERMANY THE FORMERLY COMMUNIST REGION IS DOTTED WITH UNCOMPETITIVE INDUSTRIES WHICH ACT AS A DRAG ON THE WHOLE ECONOMY TO GET GERMANY OUT OF ITS DOWNTURN HE ARGUES THE EASTERN PART OF THE COUNTRY HAS TO BE PUT ON THE RIGHT TRACK I ASSUME THAT WHEN WE SUCCEED IN CREATING A SELFSUPPORTING UPTURN IN EASTERN GERMANY THIS WILL SERVE AS A LOCOMOTIVE FUNCTION FOR THE WHOLE GERMAN ECONOMY SAYS MR REXRODT BUT THERE'S A PROBLEM IF EXPOSED TO THE FULL BLAST OF THE FREE MARKET MOST OF EASTERN GERMANY'S FACTORIES WOULD ALREADY BE BANKRUPT SO DESPITE HIS FREEMARKET PHILOSOPHY MR REXRODT FAVORS PUMPING IN SUBSIDIES TO KEEP SALVAGEABLE EASTERN GERMAN INDUSTRIES FUNCTIONING LONG ENOUGH TO RESTRUCTURE BUT THIS HAS TO BE DONE ONLY FOR A LIMITED TIME HE INSISTS IT COULD BE FOR ONE YEAR TWO YEARS OR MORE BUT IT CAN'T BECOME A PERMANENT CONDITION MR REXRODT ADDS THAT GERMANY NEEDS A CLEAR INDUSTRIAL POLICY FOR THE EASTERN PART OF THE COUNTRY BUT HE'S UNEASY ABOUT USING A SIMILARLY STRUCTURED APPROACH TO DEALING WITH WESTERN GERMANY'S PROBLEM INDUSTRIES WE CERTAINLY HAVE STRUCTURAL PROBLEMS IN THE WEST HE SAYS BUT I SEE THOSE BEING PRIMARILY ADDRESSED BY FREE MARKET FORCES HIS FIRST FEW MONTHS IN OFFICE HAVE SHOWN HOW DIFFICULT IT IS TO MAKE PROGRESS ON SUCH ISSUES MR REXRODT ARRIVED IN BONN AMID A STORMY DEBATE OVER A SOLIDARITY PACT A VAGUE CONCEPT PUT FORWARD BY CHANCELLOR HELMUT KOHL WHICH CALLS FOR ALL SECTORS OF SOCIETY TO MAKE SACRIFICES TO BOLSTER THE ECONOMY THE GOVERNMENT'S CONTRIBUTION IS AN ECONOMIC PACKAGE THAT CUTS SPENDING AND BOOSTS TAXES TO HELP PAY FOR UNITY BUT THE AGREEMENT UNVEILED EARLIER THIS MONTH FELL SHORT OF WHAT MANY IN THE GOVERNMENT INCLUDING MR REXRODT WANTED IT WAS A COMPROMISE IN THE TRUE SENSE OF THAT WORD HE SAYS MR REXRODT CONTENDS THE PACKAGE DOES TOO LITTLE TO CUT SPENDING OR LIMIT GROWTH OF GOVERNMENT INDEBTEDNESS EASING BACK IN HIS CHAIR MR REXRODT SAYS THE DEBATE OVER A SOLIDARITY PACT IS CLOSELY LINKED TO GROWING CONCERN OVER GERMANY'S FUTURE AS A PRODUCTION SITE MANY GERMAN BUSINESS LEADERS COMPLAIN ABOUT THE HIGH COST OF DOING BUSINESS IN GERMANY AND MANY FIRMS ARE SHIFTING INVESTMENTS TO LESSEXPENSIVE OVERSEAS LOCATIONS WHAT CONCERNS US IS WHETHER GERMANY AS A WHOLE IS BECOMING TOO EXPENSIVE SAYS MR REXRODT HE SAYS MANY INDUSTRIES ARE ALREADY ADAPTING TO HIGH COSTS THE AUTO INDUSTRY FOR INSTANCE IS BUYING MORE PARTS FROM FOREIGN SUPPLIERS BUT HE ADDS THE COST STRUCTURE ITSELF INCLUDING GERMANY'S GENEROUS SOCIAL BENEFITS HAS TO BE REEXAMINED MR REXRODT SAYS THAT AS A LEADING EXPORTER GERMANY COULD SUFFER BADLY IF THE GLOBAL RECESSION LINGERS SINCE THIS WOULD INHIBIT SALES OF GERMAN GOODS IN OTHER PARTS OF THE WORLD THAT'S ONE REASON HE'S PUSHING FOR COMPLETION OF STALLED GLOBAL TRADE NEGOTIATIONS MR REXRODT SAYS HE HAS A HARD TIME IMAGINING THE ISSUE CAN LINGER UNRESOLVED UNTIL THIS JULY'S WORLD ECONOMIC SUMMIT IN TOKYO BUT GETTING AN AGREEMENT IS NOW IN THE HANDS OF THE AMERICANS HE SAYS MR REXRODT SAYS IF WASHINGTON EDGES TOWARD PROTECTIONIST POLICIES ON ISSUES SUCH AS AIRCRAFT AND STEEL IT COULD EASILY SPARK A TRADE WAR WITH DEVASTATING IMPACT ON ALL TRADING NATIONS MEANWHILE MR REXRODT CONTINUES BUILDING HIS POSITION IN BONN HE SAYS HE WOULD LIKE TO WIN MORE POWERS FOR THE ECONOMICS MINISTRY SUCH AS GETTING BACK THE MONEY AND CREDIT DIVISION WHICH WAS GIVEN TO THE FINANCE MINISTRY IN THE EARLY 1970S BUT HE WON'T EVEN TRY FOR THAT DURING THE CURRENT LEGISLATIVE PERIOD 9303260060 930326 US CHARGES 2 MORE SUSPECTS IN FATAL BLAST ABOHALIMA BROUGHT BACK FROM EGYPT IS CALLED RINGLEADER IN BOMBING BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TWO MORE SUSPECTS IN THE WORLD TRADE CENTER BOMBING APPEARED FOR THE FIRST TIME IN FEDERAL COURT YESTERDAY INCLUDING THE ALLEGED MASTERMIND OF THE PLOT TO EXPLODE A BOMB IN THE PARKING GARAGE BENEATH THE OFFICE COMPLEX THE SECOND MAN WAS ARRESTED YESTERDAY AFTER TURNING HIMSELF IN TO AUTHORITIES IN NEW JERSEY ALL FOUR MEN CHARGED SO FAR IN CONNECTION WITH THE FEB 26 BOMBING THAT KILLED SIX PEOPLE HAVE SAID THEY ARE INNOCENT THEY ARE BEING HELD WITHOUT BAIL A FIFTH MAN IBRAHIM ELGABROWNY BROOKLYN CHARGED WITH OBSTRUCTING THE INVESTIGATION INTO THE BOMBING HAS ALSO PLEADED INNOCENT FEDERAL PROSECUTORS SAID THERE ARE ADDITIONAL SUSPECTS JAMES FOX THE NEW YORK FBI CHIEF SAID THE INVESTIGATION WILL CONTINUE ON A WIDE AND ACTIVE SCALE BUT HE APPEARED TO BACK OFF EARLIER STATEMENTS THAT THE ATTACK WAS TIED TO A KNOWN PROFESSIONAL TERRORIST GROUP THE BIGGEST ARREST SO FAR APPEARS TO BE THAT OF MAHMUD ABOHALIMA A NEW YORK CITY CAB DRIVER WHO FEDERAL AUTHORITIES SPEAKING ON THE CONDITION OF ANONYMITY HAVE SAID WAS THE RINGLEADER BEHIND THE BOMBING MR ABOHALIMA WHOSE INDICTMENT WAS UNSEALED YESTERDAY APPEARED IN COURT AFTER BEING FLOWN WEDNESDAY FROM HIS NATIVE EGYPT WHERE HE WAS APPARENTLY CAPTURED BY AUTHORITIES THERE DURING A SWEEP FOR MUSLIM EXTREMISTS DRESSED IN AN OLIVE GREEN DOUBLEBREASTED SUIT MR ABOHALIMA APPEARED TIRED CLOSING HIS EYES THROUGHOUT THE HEARING HIS ATTORNEY JESSE BERMAN SAID MR ABOHALIMA HAD BEEN HELD IN EGYPT FOR ABOUT 10 DAYS BEFORE BEING FLOWN HERE HE ALSO SAID THAT HIS CLIENT WAS BLINDFOLDED TORTURED AND INTERROGATED IN ARABIC ABOUT HIS ALLEGED ROLE IN THE BOMBING THE DATE OF MR ABOHALIMA'S CAPTURE IN EGYPT COINCIDES WITH THE TIME WHEN LAW ENFORCEMENT SOURCES HERE BEGAN NAMING HIM AS THE KEY SUSPECT IN THE BOMBING IT WAS NOT CLEAR WHETHER EGYPTIAN AUTHORITIES DETERMINED HIS ALLEGED INVOLVEMENT OR IF US AUTHORITIES ALERTED THEM THAT MR ABOHALIMA WAS A SUSPECT IF THE EGYPTIAN AUTHORITIES WERE THE ONES WHO EXTRACTED A STATEMENT FROM MR ABOHALIMA THAT EVIDENCE MIGHT NOT BE ALLOWED INTO A US COURT PROCEDURE LEGAL EXPERTS SAID MR BERMAN SAID HE WAS NOT AWARE OF HIS CLIENT SIGNING ANY STATEMENTS FEDERAL AUTHORITIES SAID HIS CAPTURE WAS MADE WITH THE ASSISTANCE OF SEVERAL FOREIGN GOVERNMENTS WHICH THEY DECLINED TO IDENTIFY MOHAMMED ABOHALIMA THE SUSPECT'S BROTHER TOLD REPORTERS THAT MAHMUD WENT TO EGYPT AFTER A RELIGIOUS PILGRIMAGE TO THE CITY OF MECCA IN SAUDI ARABIA MOHAMMED ABOHALIMA WHO IS ALSO A CAB DRIVER IN NEW YORK SAID MAHMUD LEFT MARCH 2 AND FLEW DIRECTLY TO SAUDI ARABIA NOT SOUTH AFRICA AS A LAW ENFORCEMENT AUTHORITY SPEAKING ON THE CONDITION OF ANONYMITY HAS SAID HE ALSO SAID THAT HIS BROTHER HAD NOT BEEN A DRIVER FOR SHEIK OMAR ABDELRAHMAN THE RADICAL EGYPTIAN CLERIC WHOSE FIERY RHETORIC IS BELIEVED TO HAVE INSPIRED THE TERRORIST ATTACK BUT MAHMUD ABOHALIMA KNEW THE SHEIK AS EVERYBODY DID HIS BROTHER SAID MAHMUD ABOHALIMA'S WIFE AND CHILDREN WENT TO EGYPT WITH HIM HIS BROTHER SAID ALSO NEWLY ARRESTED WAS BILAL ALKAISI 27 HE APPEARED IN COURT AFTER ALLEGEDLY TURNING HIMSELF IN TO AUTHORITIES AT THE FBI'S NEWARK NJ OFFICE MR ALKAISI'S LAWYER HOWARD MULHOLLAND ASKED THAT THE COMPLAINT AGAINST HIS CLIENT WHO HAS NOT YET BEEN INDICTED BE DISMISSED AND SAID THAT HIS CLIENT HAD NOTHING TO DO WITH THE BOMBING US DISTRICT COURT JUDGE THOMAS P GRIESA DENIED THAT REQUEST AFTER THE GOVERNMENT ARGUED THAT MR ALKAISI WAS SEEN AT THE NEW JERSEY STORAGE SITE WHERE THE BOMB MATERIALS WERE ALLEGEDLY KEPT AND ADMITTED KNOWING ANOTHER SUSPECT IN THE CASE PRIOR TO THE APPEARANCES OF MESSRS ABOHALIMA AND ALKAISI IN COURT MOHAMMED A SALAMEH AND NIDAL AYYAD THE FIRST TWO SUSPECTS ARRESTED IN THE CASE WERE ARRAIGNED ON THE INDICTMENTS AGAINST THEM BOTH MEN FORCEFULLY STATED THEIR INNOCENCE WAVING WITH THEIR HANDS CUFFED TO FRIENDS AND FAMILY IN THE COURTROOM THE CASE WAS ASSIGNED TO US DISTRICT COURT JUDGE KEVIN T DUFFY A VETERAN JURIST WITH A TOUGH PROPROSECUTION REPUTATION MR ABOUHALIMA WHO HAS YET TO BE ARRAIGNED ON THE INDICTMENT AGAINST HIM IS EXPECTED TO EVENTUALLY BE INCLUDED AS A CODEFENDENT IN THE CASE BEFORE JUDGE DUFFY I SWEAR BY EVERYTHING I HOLD DEAR THE KORAN MY WIFE MY CHILD I AM NOT GUILTY AND I HAD NOTHING TO DO WITH THIS SHOUTED MR AYYAD A NATURALIZED US CITIZEN WHO LIVES IN NEW JERSEY WHERE HE WORKED FOR ALLIEDSIGNAL AS AN ENGINEER MR AYYAD WAS BORN IN KUWAIT AND HIS FAMILY IS OF PALESTINIAN ANCESTRY MR AYYAD'S LAWYER LEONARD WEINGLASS IN INTERVIEWS WITH REPORTERS ASSAILED THE CHIEF PIECES OF EVIDENCE THAT FEDERAL INVESTIGATORS HAVE USED TO TIE HIS CLIENT TO MR SALAMEH THE MAN WHO ALLEGEDLY RENTED THE VAN USED TO CARRY THE EXPLOSIVES THAT BLEW UP THE PARKING GARAGE UNDERNEATH THE TRADE CENTER MR SALAMEH IS ALSO OF PALESTINIAN DESCENT MR WEINGLASS SAID THAT A JOINT BANK ACCOUNT SHARED BY THE TWO MEN WAS SET UP FOR A WHOLESALE CANDY OPERATION THEY STARTED LAST FALL WHEN THE CANDY BUSINESS FALTERED THE TWO DECIDED TO ABANDON IT AND WITHDREW THE MONEY FROM THE ACCOUNT BUT AT THE SAME TIME THAT MR WEINGLASS WAS GIVING THE OUTLINES OF HIS DEFENSE PROSECUTORS DISCLOSED FOR THE FIRST TIME THAT BOMBTIMING DEVICES WERE ALLEGEDLY FOUND AT MR AYYAD'S HOME IN MAPLEWOOD NJ 9303260059 930326 BUSINESS BRIEF ASSET FINANCE GROUP CONFEDERATION LIFE INSURANCE TO SELL ITS 65 STAKE IN FIRM CONFEDERATION LIFE INSURANCE CO SAID IT WILL RAISE ABOUT C250 MILLION CANADIAN DOLLARS US2012 MILLION BY SELLING MOST OF ITS 65 STAKE IN ASSET FINANCE GROUP A LEASING AND FINANCING CONCERN MUTUAL LIFE IS BASED ON WATERLOO ONTARIO CONFEDERATION IS IN TORONTO BOTH ARE MUTUAL LIFE COMPANIES THE MUTUAL GROUP OF COMPANIES OWNED BY POLICYHOLDERS OF MUTUAL LIFE INSURANCE CO AGREED TO BUY 225 OF ASSET FINANCE FOR C60 MILLION ASSET FINANCE EMPLOYEES HEADED BY STEVEN HUDSON PRESIDENT AND CHIEF EXECUTIVE AGREED TO BUY 20 OF THE CONCERN FOR ABOUT C53 MILLION RAISING THEIR STAKE TO 55 MUTUAL GROUP ALSO AGREED TO ACQUIRE SOME ASSET FINANCE DEBT HELD BY CONFEDERATION AT THE CONCLUSION OF THESE TRANSACTIONS THE COMPANIES SAID CONFEDERATION WILL HAVE RECEIVED ABOUT C250 MILLION AND ITS STAKE IN ASSET FINANCE WILL BE CUT TO 225 9303260058 930326 BUSINESS BRIEF GENERAL ELECTRIC CO GOVERNMENT SERVICES UNIT WINS 482 MILLION CONTRACT GENERAL ELECTRIC CO'S GOVERNMENT SERVICES UNIT SAID IT WAS CHOSEN FOR A 482 MILLION CONTRACT BY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION UNDER THE CONTRACT WHICH IS EXPECTED TO BEGIN MAY 1 GE GOVERNMENT SERVICES IS TO PROVIDE SCIENCE PAYLOAD DEVELOPMENT ENGINEERING AND OPERATIONS SERVICES TO THE LYNDON B JOHNSON SPACE CENTER IN HOUSTON THE CONTRACT CONSISTS OF A FIVEYEAR BASE PERIOD AND TWO OPTION PERIODS OF TWO YEARS EACH SERVICES TO BE PROVIDED ARE IN SUPPORT OF PROGRAMS SUCH AS SPACELAB LIFE SCIENCES AND THE JOINT SPACE SHUTTLE/RUSSIAN MIR SPACE STATION MISSION AS WELL AS POSSIBLE WORK ON THE SPACE STATION FREEDOM GE'S UNIT HAS BEEN THE INCUMBENT ON THE SCIENCE PAYLOAD DEVELOPMENT CONTRACT SINCE 1978 SERVICES UNDE THE CONTRACT INVOLVE SUPPORTING NASA'S SCIENTIFIC RESEARCH IN A LABORATORY ENVIRONMENT IN THE NEAR WEIGHTLESSNESS OF SPACE GE IS BASED IN FAIRFIELD CONN 9303260057 930326 BUSINESS BRIEF HOME SHOPPING NETWORK INC PANEL IS FORMED TO REVIEW SOME DEALS BECAUSE OF SUIT HOME SHOPPING NETWORK INC ST PETERSBURG FLA SAID ITS BOARD FORMED A SPECIAL COMMITTEE TO REVIEW AND CONSIDER RELATEDPARTY TRANSACTIONS AS A RESULT OF A SHAREHOLDER DERIVATIVE SUIT THE TELEVISION RETAILER MADE THE DISCLOSURE IN A STATEMENT SENT TO SHAREHOLDERS MARCH 15 AS REPORTED A SHAREHOLDER FILED SUIT AGAINST THE COMPANY AND ITS BOARD ALLEGING HOME SHOPPING ILLEGALLY PAID MORE THAN 8 MILLION TO THE SON OF ROY SPEER THE COMPANY'S CHAIRMAN THE SUIT FILED BY 7457 CORP A COLORADO COMPANY AND HOME SHOPPING SHAREHOLDER ALLEGED THE SHOPPING NETWORK CONTINUES TO PAY THE SON RICHARD SPEER FOR COMPUTER CONSULTING SERVICES EVEN THOUGH HIS CONTRACT EXPIRED IN JULY 1988 A SUBSEQUENT LAWSUIT MAKING A SIMILAR ALLEGATION WAS RECENTLY CONSOLIDATED WITH THAT ACTION THE COMPANY SAID 9303260056 930326 BUSINESS BRIEF GETTY PETROLEUM CORP PROFIT MORE THAN DOUBLED IN 4TH QUARTER ON NEW PACT REVERSING NINE MONTHS OF LOSSES GETTY PETROLEUM CORP SAID FOURTHQUARTER PROFIT MORE THAN DOUBLED BOLSTERED BY A NEW PRODUCTSUPPLY AGREEMENT COSTCUTTING MEASURES AND FIRMER GASOLINE PRICES GETTY A JERICHO NY INDEPENDENT MARKETER OF GASOLINE AND OTHER PETROLEUM PRODUCTS SAID NET INCOME FOR THE FOURTH QUARTER ENDED JAN 31 JUMPED TO 68 MILLION OR 54 CENTS A SHARE FROM 32 MILLION OR 26 CENTS A SHARE A YEAR AGO REVENUE FELL NEARLY 24 TO 223 MILLION GETTY ATTRIBUTED THE DROP TO ITS DECISION IN THE PAST SIX MONTHS TO SUBSTANTIALLY REDUCE ITS BULK WHOLESALE ACTIVITIES THE COMPANY ALSO SAID PROFIT FELL BECAUSE OF A 1991 DECISION TO LEASE 141 CONVENIENCE STORES RESULTING IN LOWER REVENUE FROM RENTS RATHER THAN SALES LOSSES FOR THE FISCAL YEAR NARROWED TO 37 MILLION OR 29 CENTS A SHARE FROM A YEARAGO LOSS OF 123 MILLION OR 98 CENTS A SHARE REVENUE FOR THE YEAR FELL 19 TO 937 MILLION FROM 12 BILLION A YEAR EARLIER 9303260055 930326 BUSINESS BRIEF RECKITT & COLMAN PLC BRITISH FIRM POSTS 22 DROP IN PRETAX EARNINGS FOR 1992 THE UK FOOD AND PERSONAL PRODUCTS GROUP RECKITT & COLMAN PLC ANNOUNCED A 22 DROP IN ITS 1992 PRETAX PROFIT AS ITS WITHDRAWAL FROM THE NORTH AMERICAN SEASONINGS MARKET GENERATED AN EXCEPTIONAL CHARGE OF 473 MILLION 698 MILLION PRETAX PROFIT TOTALED 1817 MILLION SALES EDGED DOWN 42 TO 190 BILLION THE DIVIDEND ROSE 73 TO 162 PENCE 239 CENTS A SHARE SALES AND OPERATING PROFIT ON CONTINUING OPERATIONS WERE MAINTAINED AT THE PREVIOUS YEAR'S LEVEL DESPITE THE DIFFICULT TRADING CONDITIONS GLOBALLY THE COMPANY SAID ADDING THAT THERE ARE NOW SIGNS PARTICULARLY IN THE US THAT AN ECONOMIC RECOVERY MAY BE STARTING TO DEVELOP ALTHOUGH CONDITIONS IN EUROPE AND IN CERTAIN OTHER COUNTRIES REMAIN DEPRESSED 9303260054 930326 BUSINESS BRIEF NORTHERN TELECOM LTD FIRSTPERIOD PROFIT EXPECTED TO FALL BELOW YEARAGO NET NORTHERN TELECOM LTD SAID FIRSTQUARTER PROFIT WOULD FALL BELOW ANALYSTS' EXPECTATIONS AND YEARAGO RESULTS OF 101 MILLION OR 41 CENTS A SHARE ON REVENUE OF 19 BILLION NORTHERN PRESIDENT JEAN C MONTY SAID THAT ALTHOUGH WE ARE NOT SATISFIED WITH EXPECTED FIRSTQUARTER RESULTS OUR RECORD BACKLOG FROM 1992 SUPPORTS OUR CAUTIOUSLY OPTIMISTIC VIEW THAT 1993 WILL BE A YEAR OF GOOD PERFORMANCE MURRAY GROSSNER AN ANALYST AT BURNS FRY LTD TORONTO SAID HE HAD FORECAST NORTHERN'S NET INCREASING BY ABOUT 10 TO 45 CENTS IN THE FIRST QUARTER BUT SAID HE'LL SLASH THAT TO 35 CENTS IN LIGHT OF THE COMPANY'S PESSIMISTIC FORECAST NORTHERN BLAMED THE SHORTFALL ON INCREASED RESEARCH AND DEVELOPMENT AND INTERNATIONAL MARKETING COSTS LOWER REVENUE FROM SOFTWARE AND THE PRICE WAR IN TELEPHONE SWITCHING SYSTEMS NORTHERN WHICH IS CONTROLLED BY CANADA'S BCE INC RECENTLY SAID ITS CHAIRMAN PAUL G STERN WOULD SOON RESIGN NORTHERN'S NO 2 OFFICIAL EDWARD LUCENTE ALSO RESIGNED AS BCE INSTALLED MR MONTY AS CHIEF EXECUTIVE 9303260053 930326 BUSINESS BRIEF ATMOS ENERGY CORP FIRM TO BUY GREELEY GAS FOR 65 MILLION OF STOCK ATMOS ENERGY CORP INCREASING ITS SIZE BY ALMOST 20 SAID IT WILL ACQUIRE A CLOSELY HELD GAS COMPANY FOR 2480000 COMMON SHARES IN A TRANSACTION VALUED AT ABOUT 65 MILLION GREELEY GAS CO DENVER PROVIDES NATURAL GAS SERVICE TO NEARLY 100000 CUSTOMERS IN 109 COMMUNITIES IN COLORADO KANSAS AND PART OF MISSOURI CURRENTLY ATMOS A DALLAS NATURAL GAS DISTRIBUTION COMPANY HAS ABOUT 534000 CUSTOMERS ATMOS HAD EARLIER DISCLOSED THAT IT WAS SEEKING TO BUY ADDITIONAL NATURAL GAS DISTRIBUTION COMPANIES THE ACQUISITION IS SUBJECT TO VARIOUS CONDITIONS AND APPROVALS ATMOS HAS ABOUT SEVEN MILLION COMMON SHARES OUTSTANDING 9303260052 930326 BUSINESS BRIEF REDLAND PLC PRETAX PROFIT CLIMBS 19 TAKEOVER OF STEETLEY CITED THE UK BUILDING MATERIALS GROUP REDLAND PLC SAID 1992 PRETAX PROFIT ROSE 19 TO 2215 MILLION 327 MILLION FROM 186 MILLION A YEAR EARLIER HELPED BY ITS RECENT TAKEOVER OF STEETLEY PLC SALES JUMPED 39 TO 209 BILLION THE RESULTS WERE ABOVE MARKET EXPECTATIONS THE UNCHANGED DIVIDEND OF 25 PENCE 37 CENTS A SHARE WAS IN LINE WITH EXPECTATIONS REDLAND SAID THE MAIN ELEMENT OF THE 1992 RESULT WAS ITS TAKEOVER OF THE BUILDING MATERIALS GROUP STEETLEY WHICH WAS CONSOLIDATED FOR THE FIRST TIME IN 1992 AND CONTRIBUTED ABOUT 50 MILLION TO GROUP OPERATING PROFIT REDLAND CHAIRMAN ROGER NAPIER COMMENTED THAT WITH STEETLEY NOW FULLY ABSORBED WE HAVE THE ASSETS MARKET POSITIONS AND PEOPLE TO BENEFIT FROM ANY RECOVERY IN THE UK 9303260051 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT STAYING HOME CABLEREADY WITH AMERICA PRETTY MUCH WIRED US COMPANIES BEGIN A CABLE LAND RUSH OVERSEAS BY MARK ROBICHAUX AFTER HOOKING UP MOST OF AMERICA US CABLE COMPANIES ARE SEEKING THEIR MANIFEST DESTINY ACROSS THE SEAS WITH 95 OF THE US ALREADY WIRED FOR CABLE AND THE DOMESTIC INDUSTRY SUBJECT TO RECENT REREGULATION BY CONGRESS COMPANIES HAVE STARTED A CABLE LAND RUSH OVERSEAS WHEREVER THEY CAN CABLE OPERATORS ARE LAYING WIRE WHILE CABLE NETWORKS PEDDLE THEIR PROGRAMS THE QUEST HAS BROUGHT THE CABLE COMPANIES INITIAL SUCCESS IN THE MOST UNLIKELY PLACES AND WAYS ESPN SELLS ICE HOCKEY TO ISRAELI TELEVISION WHILE COUNTRY MUSIC TELEVISION BEAMS VIDEOS STRAIGHT FROM NASHVILLE TENN TO AUDIENCES IN LONDON IT FEELS MUCH LIKE THE BOOM DAYS OF THE DOMESTIC CABLE MARKET IN THE 1980S SAYS FRANK BIONDI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF VIACOM INC VIACOM WILL LAUNCH ITS NICKELODEON NETWORK IN EUROPE THIS FALL THE COMPANY'S MTV NETWORK ALREADY REACHES 211 MILLION HOUSEHOLDS WORLDWIDE THROUGH VARIOUS PARTNERSHIPS AND AFFILIATIONS THERE'S THIS LATENT UNFILLED DEMAND OUT THERE SAYS MR BIONDI THE GROWTH RATES ARE THERE AND BEST OF ALL MUCH OF WHAT WE'RE ALREADY DOING HERE CAN BE TRANSLATED NICELY IN A FOREIGN CULTURE AND FORMAT WELL MAYBE FROM BOMBAY TO BOLIVIA US COMPANIES HAVE SLAMMED INTO LANGUAGE BARRIERS AND STUMBLED IN CULTURAL CHASMS THEY HAVE BEEN BLOCKED BY FIERCE COMPETITION AND NETTLESOME REGULATIONS AND PERHAPS MOST IMPORTANT THEY HAVE HAD TO GRAPPLE WITH SOPHISTICATED AUDIENCES HUNGRY FOR PROGRAMMING TAILORED TO THEIR LOCAL TASTES LITTLE WONDER THEN THAT COMPANIES ARE PICKING THEIR TARGET COUNTRIES CAREFULLY A CABLE OPERATOR MIGHT SIDESTEP BELGIUM FOR INSTANCE WITH ITS 92 CABLEPENETRATION RATE AND JUMP INTO NEIGHBORING UNITED KINGDOM UNTAPPED TERRITORY WITH A TRIFLING 2 PENETRATION CABLE PENETRATION IS DEFINED AS THE PERCENTAGE OF TV HOUSEHOLDS THAT SUBSCRIBE TO CABLE PROGRAMMERS HAVE BEEN QUICKEST OUT OF THE GATE SELLING THEIR FARE TO CABLE OPERATORS SATELLITE SERVICES AND OVERTHEAIR BROADCASTERS BOTH PRIVATE AND STATEOWNED SOME EVEN GIVE AWAY THEIR SERVICE INITIALLY IN ORDER TO CULTIVATE AN AUDIENCE RIGHT NOW EVERYBODY'S OUT THERE STAKING THEIR TERRITORY SAYS DAVID ARCHER VICE PRESIDENT OF INTERNATIONAL BUSINESS DEVELOPMENT FOR VIACOM WORLD WIDE A VIACOM SUBSIDIARY FIRST IN' ACCOUNTS FOR A LOT BUT FIRST IN ALSO ACCOUNTS FOR SOME SURPRISES CNN INTERNATIONAL LAUNCHED IN 1985 BY PARENT TURNER BROADCASTING SYSTEM INC NOW REACHES MORE HOMES ABROAD ABOUT 62 MILLION IN 140 COUNTRIES THAN IT DOES IN THE US BUT IT RAN INTO A PROBLEM WITH UNACCEPTABLE NEWS FOOTAGE IN PAKISTAN THERE THE NETWORK'S TWICEDAILY FOURHOUR NEWSCASTS MUST PASS MUSTER WITH A PANEL OF YOUNG MUSLIM WOMEN WHO WATCH FOR TABOO FOOTAGE BARE SHOULDERS CLEAVAGE OR KISSING IF AN OFFENDING SCENE APPEARS THE YOUNG LADIES PUSH SOME BUTTONS THAT BLUR THE NEWSCAST SAYS PETER VESEY VICE PRESIDENT OF CNN INTERNATIONAL THAT POSED A PARTICULAR PROBLEM WHEN CNN AIRED STYLE A FASHION SHOW FEATURING SCANTILY CLAD MODELS SAUNTERING DOWN RUNWAYS AFTER A WHILE THE PANEL STOPPED MONITORING THE FASHION SHOW ALTOGETHER NOW VIEWERS JUST HEAR THE AUDIO FEED AND CAN ONLY SEE FOOTAGE OF GEESE AND DUCKS FLYING OVER A SWAMP IT'S PRETTY MR VESEY SAYS TODAY CNN INTERNATIONAL IS STILL TRYING TO SHED ITS IMAGE AS AN ENGLISHLANGUAGE NEWS SERVICE FOR TRAVELING US BUSINESS EXECUTIVES AND EXPATRIATES THE NETWORK HAS STEPPED UP ASIAN AND EUROPEAN BUSINESS REPORTS ADDED LIVE ANCHORS IN LONDON AND PUSHED LARRY KING LIVE AS THE WORLD'S ONLY GLOBAL TALK SHOW THAT TAKES INTERNATIONAL CALLS ONE FEATURE STILL IN THE WORKS GLOBAL WEATHER FORECASTS CNN INTERNATIONAL'S CLIENTS HELP SMOOTH OVER SOME CULTURAL BARRIERS WHEN THEY DUB OR SUBTITLE STORIES IN THEIR NATIVE LANGUAGE OR BLEND THEM INTO NATIVE NEWSCASTS NHK IN JAPAN FOR INSTANCE SUBTITLES SEVERAL HALFHOUR HEADLINE NEWS SEGMENTS DURING THE DAY BUT CNN INTERNATIONAL ALSO USES LOCAL PARTNERS TO BRIDGE CULTURAL GAPS IT RECENTLY BOUGHT A 275 STAKE IN NTV THE 24HOUR GERMAN NEWS NETWORK JOINING TIME WARNER INC AS A PARTNER THE AGREEMENT SAYS MR VESCEY WILL IMPROVE NEWS GATHERING IN THE AREA PARTLY THROUGH THE EXCHANGE OF NEWS FOOTAGE AND MORE IMPORTANT IN LEARNING GERMAN PERSPECTIVE YOU CAN'T SIT IN ATLANTA AND DETERMINE WHAT WILL SUCCEED IN A GERMAN CONTEXT HE EXPLAINS VIACOM'S NICKELODEON TEAMED UP WITH BRITISH SKY BROADCASTING LTD WHICH IS 50OWNED BY RUPERT MURDOCH FOR NEXT OCTOBER'S LAUNCH IN THE UNITED KINGDOM NICKELODEON PRESIDENT GERALDINE LAYBOURNE SAYS SHE HAS HOPES FOR A TWOWAY PIPE THROUGH WHICH US AND FOREIGN PARTNERS EXCHANGE NATIVE SHOWS AND COPRODUCE ORIGINAL PROGRAMMING BUT NETWORKS FIND THAT THE MARKETS ABROAD AREN'T SIMPLY THERE FOR THE TAKING IN THE UK NICKELODEON WILL HAVE TO COMPETE WITH THE CHILDREN'S CHANNEL A SATELLITE SERVICE OWNED IN LARGE PART BY US CABLE OPERATOR TELECOMMUNICATIONS INC AND FLEXTECH PLC AN INVESTMENT HOLDING COMPANY BASED IN LONDON THAT ALSO STARTS IN THE FALL CNN INTERNATIONAL FACES THE VENERABLE BRITISH BROADCASTING CORP WHICH STARTED WORLD SERVICE TELEVISION IN ASIA IN LATE 1991 WITH PLANS TO EXPAND WORLDWIDE IN EUROPE RUPERT MURDOCH'S SKY NEWS POSES A THREAT WHILE EURO NEWS A PANEUROPEAN MULTILANGUAGE NEWS SERVICE MAY DRAW VIEWERS TO ITS NUMEROUS REPORTS FROM PUBLIC BROADCASTERS PROBABLY THE HARDEST HIT BY FOREIGN COMPETITION IS ESPN THE LARGEST CABLE NETWORK IN THE US ESPN QUICKLY FOUND ITS DOMESTIC MIGHT DIDN'T MEAN ALL THAT MUCH IN EUROPE CAPITAL CITIES/ABC INC'S ESPN TEAMED UP WITH TWO EUROPEAN PARTNERUY THE EUROPEAN SPORTS NETWORK A UNIT OF EUROPEAN TELEVISION NETWORK WHEN IT VENTURED INTO EUROPE STILL THE NETWORK SUFFERED THROUGH AN EXHAUSTING FOURYEAR BATTLE OVER AD REVENUES AND SPORTS RIGHTS WITH ITS MAIN COMPETITOR THERE EUROSPORT A PARISBASED 24HOUR MULTILINGUAL SERVICE OPERATED BY TELEVISION FRANCAIS 1 AFTER LOSSES BEGAN STACKING UP FOR THE ESPN PARTNERSHIP THE VENTURE DECIDED TO MERGE WITH EUROSPORT CREATING A PANEUROPEAN SPORTS POWERHOUSE REACHING SOME 40 MILLION SUBSCRIBERS A MOVE THAT MAY FORESHADOW FUTURE STRATEGIC MERGERS THINK OF A TENNIS MATCH BETWEEN GERMAN BORIS BECKER AND FRENCH HENRI LECONTE SAYS RICHARD STONE ESPN'S VICE PRESIDENT OF INTERNATIONAL SALES ON THE NEW MERGED CHANNEL WE'LL BEAM THAT MATCH DOWN WITH FOUR DIFFERENT LANGUAGE FEEDS GERMAN FRENCH ENGLISH AND DUTCH EACH AUDIENCE WOULD GET A DISTINCTIVE POINT OF VIEW IN THEIR OWN LANGUAGE BUT IF PROGRAMMERS HOPE EVER TO MATCH SUBSCRIBER LEVELS IN THE US THEY MUST FIRST CONVINCE VIEWERS THAT THEIR WARES ARE WORTH WATCHING THERE'S THE PRESUMPTION THAT EVERYBODY KNOWS AMERICAN SPORTS BUT THEY DON'T SAYS MR STONE IF WE CAN CREATE INTEREST IN THE SPORT IT MEANS MORE PEOPLE WATCHING SO ESPN INTERNATIONAL WHICH IS NOW BEAMED TO LATIN AMERICA SOUTHEAST ASIA AND THE PACIFIC RIM BROADCASTS A SERIES OF 24 ONEMINUTE SPOTS EXPLAINING THE FINER POINTS OF BASEBALL TO VIEWERS BASEBALL BASICS COMES IN THREE LANGUAGES ENGLISH SPANISH AND PORTUGUESE FOR THE BENEFIT OF VIEWERS IN SUCH COUNTRIES AS BRAZIL ARGENTINA AND CHILE IN BRAZIL ESPN SANDWICHES THE SPOTS BEFORE AND AFTER BRAZIL'S NATIONAL SOCCER CHAMPIONSHIPS AT MTV THE NETWORK INVESTS HEAVILY IN CUSTOMIZING THE MUSIC CHANNEL FOR DIFFERENT AUDIENCES AN APPROACH IT CREDITS WITH FUELING ITS GROWTH THERE IS A EUROCULTURE SAYS BILL ROEDY CHIEF EXECUTIVE OF MTV EUROPE AND WE MAKE A POINT OF PLAYING FRENCH GERMAN AND DUTCH MUSIC WE WANT TO MAKE THEM FEEL LIKE THEY OWN THIS NETWORK LAST YEAR MTV FEATURED BEACH WEEKEND AIRING LIVE FROM HOT SPOTS IN VARIOUS COUNTRIES THE RED SEA AND LAKE OF GALLILEE IN ISRAEL THE COASTAL CITY OF RAVENNA IN ITALY AND THE FRENCH RIVIERA THE CHANNEL HAS BUILT A PANEUROPEAN BASE OF 200 ADVERTISERS THAT RUN UNIFIED CAMPAIGNS ACROSS THE 30NATION BROADCAST AREA INCLUDING NIKE COCACOLA FRUIT OF THE LOOM AND LEE JEANS BRITISH KNIGHTS A NEW YORK SNEAKER COMPANY SPENDS PRACTICALLY ITS ENTIRE EUROPEAN AD BUDGET ON MTV EUROPE MTV EUROPE IS EXPECTED TO SURPASS ITS AMERICAN SIBLING SOMETIME IN 1994 AND BECOME THE LARGEST NETWORK IN THE WORLD BY 1995 MTV EUROPE STARTED IN AUGUST 1987 AND IS NOW BEAMED TO MORE THAN 43 MILLION HOUSEHOLDS IN JANUARY MTV LAUNCHED A SPANISHLANGUAGE CHANNEL ACROSS LATIN AMERICA INTERNATIONAL REVENUE SHOULD GROW 35 ANNUALLY FOR MTV NETWORKS OVER THE NEXT FIVE YEARS ESTIMATES ANALYST TOM WOLZIEN OF SANFORD C BERNSTEIN RESEARCH IN FIVE YEARS MTV NETWORKS WILL GET MORE THAN 20 OF THEIR TOTAL REVENUE FROM OVERSEAS MARKETS UP FROM 15 CURRENTLY SAYS MR BIONDI CHIEF EXECUTIVE OF MTV'S PARENT VIACOM EVEN COUNTRY MUSIC HAS BUILT A NICHE OVERSEAS COUNTRY MUSIC TELEVISION BEGAN BROADCASTING ON BRITISH SYSTEMS LAST OCTOBER AND HOPES TO ADD SCANDINAVIA THIS YEAR AND FRANCE NEXT REACHING SOME 65 MILLION SUBSCRIBERS BY 1994 BUT BECAUSE MANY COUNTRIES HAVE ONLY A FEW BROADCAST STATIONS AND NO WORKING CABLE MANY US CABLE NETWORKS MUST SIMPLY WAIT IN THE MEANTIME THEY GET ON THE AIR WHERE THEY CAN SELLING PROGRAMS PIECEMEAL TO FOREIGN BROADCASTERS OR SIMPLY BROADCASTING THEIR SIGNAL UNSCRAMBLED BY SATELLITE FOR ANYONE TO RECEIVE IN RUSSIA TURNER BROADCASTING SYSTEM'S TNT NETWORK IS IN PARTNERSHIP WITH MOSCOW INDEPENDENT BROADCASTING CO IN A FREE OVERTHEAIR VHF STATION THE FIRST PRIVATE STATION IN THE COUNTRY TV6 MOSCOW IS EXPECTED TO REACH NINE MILLION PEOPLE IN THE AREA BY YEAR'S END AND COULD BE THE SEED OF RUSSIA'S FIRST SUPERSTATION WHILE PROGRAMMERS ANSWER THE CLARION CALL OVERSEAS US CABLE OPERATORS AREN'T FAR BEHIND BULLISH AMERICAN COMPANIES ARE BANKROLLING SOME 90 OF CABLESYSTEM DEVELOPMENT IN BRITAIN AND MORE ARE COMING IN THE NASCENT MARKET THERE LETS THE CABLE COMPANIES AND US PHONE COMPANIES AS WELL SELL CABLE AND TELEPHONE SERVICE TO THE SAME CUSTOMERS IN THE US PHONE COMPANIES ARE PROHIBITED FROM OFFERING CABLE SERVICE IN THEIR SERVICE AREA BUT MANY ANTICIPATE THAT BAN TO BE EVENTUALLY LIFTED THE FUTURE MANY EXPERTS SAY IS A SINGLE WIRE INTO THE HOME WITH MULTIPLE SERVICES TELEPHONE PAYPERVIEW MOVIES INTERACTIVE GAMES AND COMPUTER SERVICES THE UNITED KINGDOM IS THE REHEARSAL ROOM FOR WHAT'S GOING TO HAPPEN IN THE US AND QUITE POSSIBLY THE REST OF THE WORLD SAYS GARY SINGER VICE PRESIDENT OF INTERNATIONAL OPERATIONS AT TELECOMMUNICATIONS THE LARGEST CABLE OPERATOR IN THE US TELECOMMUNICATIONS HAS TEAMED UP WITH REGIONAL TELEPHONE COMPANY US WEST TO FORM TELEWEST INTERNATIONAL WHICH HAS BECOME THE LARGEST CABLE OPERATOR IN THE UK EARLIER THIS MONTH COX COMMUNICATIONS AGREED TO INVEST AN ESTIMATED 300 MILLION TO JOIN SOUTHWESTERN BELL CORP IN A VENTURE TO BUY AND BUILD UK CABLE SYSTEMS OTHER US TELEPHONE COMPANIES HAVE FORMED THEIR OWN LOCAL PARTNERSHIPS TO PURSUE CABLE IN THE UK BRITAIN'S HANDSOFF APPROACH TO REGULATION OPENS UP AN UNTAPPED VEIN OF REVENUE FOR CABLE OPERATORS COUNTY NATWEST SECURITIES LTD ASSUMES THAT SOME 20 OF THE HOMES IN BRITAIN THAT CAN GET CABLE WILL ALSO SUBSCRIBE TO VIACABLE PHONE SERVICE THAT WOULD MEAN REVENUE OF ABOUT 175 BILLION TO CABLE OPERATORS OFFERING TELEPHONE SERVICE BY THE YEAR 2000 THE FIRM FORECASTS COMCAST CORP A PHILADELPHIA CABLE COMPANY HAS SIGNED UP MORE THAN 20 OF ITS 60000 CABLE SUBSCRIBERS TO PHONE SERVICE IN THE UK WHERE IT HAS PARTNERSHIPS WITH TELECOMMUNICATIONS AND US WEST AMONG OTHERS IN OUR WILDEST DREAMS WE NEVER EXPECTED THAT LEVEL OF PENETRATION SAYS JOHN ALCHIN A COMCAST VICE PRESIDENT WHO ADDS THAT THE COMPANY HAD ORIGINALLY EXPECTED A 6 SIGNUP RATE WE GROSSLY UNDERESTIMATED THE WILLINGNESS OF CONSUMERS TO SWITCH SERVICES MUCH TO THE DELIGHT OF CABLE COMPANIES THE BRITISH GOVERNMENT WON'T ALLOW THE LOCAL TELEPHONE MONOPOLY BRITISH TELECOMMUNICATIONS TO COMPETE IN CABLE UNTIL THE YEAR 2000 BUT CABLE STILL IS DWARFED IN BRITAIN BY DIRECTBROADCAST SATELLITE WHICH NOW REACHES ROUGHLY 35 MILLION HOMES COMPARED WITH CABLE'S 443000 ACCORDING TO AN ESTIMATE BY THE CABLE TELEVISION ASSOCIATION OF THE UK COUNTY NATWEST PREDICTS HOWEVER THAT CABLE HOMES COULD GROW TO ABOUT 68 MILLION OR ONETHIRD OF ALL HOMES IN BRITAIN BY THE END OF THE DECADE CABLE WILL SURPASS DIRECT BROADCAST LARGELY BECAUSE IT CAN MORE EASILY PROVIDE LOCAL COUNTRYSPECIFIC PROGRAMMING AND LATER INTERACTIVE SERVICES THE FIRMS SAYS BUT CABLE OPERATORS STILL HAVE A TOUGH ROAD AHEAD SINCE SATELLITE WILL CONTINUE TO DELIVER FORMIDABLE COMPETITION FOR MANY YEARS AND CABLE EXPANSION EFFORTS WILL SURELY BE SLOWED BY A DEARTH OF CAPITAL BOTH HERE AND IN THE UK INDEED IT COSTS NEARLY TWICE AS MUCH TO LAY WIRE IN THE UK WHERE CABLE MUST ALWAYS BE BURIED UNDERGROUND THAN IN THE US AND INVESTORS ARE SLOW TO PUT UP MONEY WHEN PROGRAMMING AND PENETRATION PROJECTIONS REMAIN UNCERTAIN VIEWERS IN THE UNITED KINGDOM WHICH HAS ONLY FOUR CHANNELS OF TELEVISION WATCH 33 HOURS A DAY NEARLY AS MUCH AS AMERICANS WHO HAVE MANY MORE CHANNELS SO CABLE OPERATORS ARE ALSO INVESTING IN PROGRAMMING COX COMMUNICATIONS'S CABLE SUBSIDIARY WHICH OWNS A 50 STAKE IN A DANISH CABLE SYSTEM JUST PUMPED 62 MILLION IN TO UK GOLD A BRITISH CHANNEL THAT BROADCASTS CLASSIC BRITISH PROGRAMMING STARTING NOV 1 FIVE US COMPANIES THAT TRADITIONALLY LAY WIRE TELECOMMUNICATIONS COMCAST NYNEX CORP SOUTHWESTERN BELL TELECOMMUNICATIONS AND US WEST HAVE FORMED A CONSORTIUM TO DEVELOP A CABLEONLY NETWORK FEATURING ENTERTAINMENT AND SPORTS THERE'S NO POINT IN BUILDING CABLE IF NOBODY'S INVESTING IN PROGRAMMING SAYS TELECOMMUNICATIONS'S MR SINGER BEYOND BRITAIN CABLE OPERATORS ARE SNIFFING OUT INVESTMENTS WHEREVER THEY CAN BUT MANY COUNTRIES SUCH AS AUSTRALIA AND ITALY HAVE TIGHT FOREIGN OWNERSHIP RESTRICTIONS IN EASTERN EUROPE DUE TO THE DISMANTLING OF OLD STATE STRUCTURES LEGISLATION TO ACCELERATE INVESTMENT IN CABLE VENTURES HAS STALLED NONETHELESS TIME WARNER HAS FOUND PROMISE IN HUNGARY WHERE IT OPERATES A 210000HOME CABLE SYSTEM WITH PARTNERS TELECOMMUNICATIONS AND UNITED INTERNATIONAL HOLDINGS INC DENVER THE OPPORTUNITIES ARE LOOKING BETTER THAN THEY DID FOUR YEARS AGO SAYS JEFFERY SCHWALL A SENIOR VICE PRESIDENT FOR TIME WARNER CABLE WE'VE GOT IRONS IN THE FIRE ALL OVER EUROPE IN THE PACIFIC RIM AND ASIA THE COMPANY RECENTLY BID WITH COMCAST AND TWO FOREIGN PARTNERS TO BUILD A SYSTEM SERVING 263000 HOMES IN FRANCE BEYOND EUROPE THERE ISN'T MUCH OF A ROAD MAP ON WHERE TO GO NEXT THE PACIFIC RIM OFFERS A POTENTIALLY LUCRATIVE MARKET BUT MANY OF THE COUNTRIES THERE ARE JUST BEGINNING TO DEVELOP THEIR CABLE INDUSTRIES MEXICO ARGENTINA BRAZIL AND THE REST OF LATIN AMERICA HOLD OPPORTUNITY TOO BUT SUCCESS MAY BE SEVERAL YEARS AWAY CABLE OPERATORS ARE CAUTIOUS GIVEN THE POLITICAL INSTABILITY ANEMIC INFRASTRUCTURES AND INFLATION IN SOME OF THOSE COUNTRIES WE'RE GROWING INTO A WORLD OF COUCH POTATOES SAYS VIACOM'S MR ARCHER IF PEOPLE WANT TO ENTERTAIN AT HOME THEY WANT TO HAVE AS MANY CHANNELS AS THEY CAN GET MR ROBICHAUX IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9303260050 930326 INTERNATIONAL BRIEF MITSUI MINING & SMELTING CO REVISED EARNINGS FORECAST CALLS FOR LOSS FOR FISCAL YEAR MITSUI MINING & SMELTING CO A SMELTER OF NONFERROUS METALS SHARPLY LOWERED ITS EARNINGS FORECAST TO A LOSS FOR THE YEAR ENDING MARCH 31 THE TOKYO COMPANY SAID ITS OPERATIONS WERE HURT BY THE WEAK DOMESTIC ECONOMY A SURGING YEN AND FALLING REVENUE FROM STAPLE NONFERROUS METALS IT SAID TOUGH TIMES AT MINING AND PROCESSING SUBSIDIARIES LIKELY WILL PUSH GROUP EARNINGS INTO THE RED THE COMPANY EXPECTS TO POST A CONSOLIDATED OR GROUP PRETAX LOSS OF 250 BILLION YEN 212 MILLION A SWING FROM PROFIT OF 516 BILLION YEN A YEAR EARLIER AND 480 BILLION YEN IN PROFIT LAST PROJECTED IT CALLED FOR A NET LOSS OF 460 BILLION YEN COMPARED WITH 476 BILLION YEN PROFIT LAST YEAR AND 600 MILLION YEN IN PROFIT ANTICIPATED CONSOLIDATED SALES ARE SEEN AT 32700 BILLION YEN OFF 28 FROM 45479 BILLION YEN A YEAR EARLIER AND 12 LOWER THAN 37100 BILLION YEN IT HAD PREDICTED 9303260049 930326 BUSINESS BRIEF JACLYN INC BARNEY BACKPACKS RECALLED OVER LEADCONTENT FEARS JACLYN INC WEST NEW YORK NJ SAID IT WAS RECALLING ITS LINE OF CHILDREN'S BACKPACKS AND CARRYALL BAGS WITH THE BARNEY DINOSAUR INSIGNIA BECAUSE OF FEARS OF HIGH LEAD CONTENT IN SOME OF THEIR COMPONENTS AS A RESULT THE BAG MAKER EXPECTS TO TAKE A 2 MILLION CHARGE AND REPORT A LOSS FOR ITS THIRD QUARTER ENDING MARCH 31 JACLYN SAID SOME COMPONENTS IN SOME OF THE LOTS WERE FOUND TO CONTAIN EXCESS LEAD LEVELS AND SOME ACCESSORY SUNGLASSES THAT CAME WITH CERTAIN BAGS DIDN'T PASS TESTS FOR SHATTERPROOF LENSES JACLYN SAID IT SAID IT HASN'T RECEIVED ANY REPORTS OF INJURIES FROM THE BAGS OR GLASSES IN THE 1992 FISCAL THIRD QUARTER THE COMPANY EARNED 401000 OR 15 CENTS A SHARE 9303260048 930326 INTERNATIONAL BRIEF SWISSAIR CARRIER TO HALVE DIVIDEND CITES LOWER PARENT PROFIT SWISSAIR SWITZERLAND'S FLAG CARRIER SAID IT WILL HALVE ITS DIVIDEND ON THE PARENT COMPANY'S 56 EARNINGS DROP BUT SAID ITS GROUP PROFIT ROSE IN 1992 MANAGEMENT PLANS A DIVIDEND CUT TO 10 FRANCS 660 FROM 20 FRANCS A SHARE THE PRIOR YEAR AND A REDUCTION TO TWO FRANCS PER DIVIDEND RIGHT CERTIFICATE FROM FOUR GROUP NET INCOME ROSE 36 TO 113 MILLION FRANCS FROM 83 MILLION IN THE PRIOR YEAR TOTAL GROUP REVENUE ROSE 47 TO 643 BILLION FRANCS FROM 614 BILLION THE COMPANY SAID MORE INFORMATION WILL BE GIVEN AT A NEWS CONFERENCE APRIL 7 PREVIOUSLY SWISSAIR SAID IT HOPED TO POST A SMALL GROUP NET PROFIT FOR 1993 ALTHOUGH IT WILL BE ANOTHER VERY DIFFICULT YEAR IT HAS SAID THAT AIRCRAFT SALES HELPED GROUP NET PROFIT IN 1992 9303260047 930326 BUSINESS BRIEF POPE RESOURCES COMPANY REPURCHASES UNITS IN 159 MILLION TRANSACTION POPE RESOURCES SAYS IT REPURCHASED 250000 OF ITS PARTNERSHIP UNITS FROM AN INVESTOR FOR 159 MILLION THE POULSBO WASH TIMBER LIMITED PARTNERSHIP SAID IT USED BORROWED FUNDS FOR THE TRANSACTION AND WILL INCREASE ITS LOGGING PACE 50 TO HELP PAY THE ADDITIONAL DEBT THE COMPANY SAID IT WILL LOG ABOUT 30 MILLION BOARD FEET OF TIMBER THIS YEAR IT HAS BEEN AVERAGING IN THE LOW 20 MILLIONS ANNUALLY IN RECENT YEARS A SPOKESMAN SAID POPE SAID IT BOUGHT THE UNITS FROM CHIEFTAIN CAPITAL MANAGEMENT INC A CLOSELY HELD INVESTMENT CONCERN IT SAID THERE ARE STILL 926694 UNITS OUTSTANDING POPE SAID THE RECENT SURGE IN TIMBER PRICES MAKES PURCHASING THE UNITS A GREAT INVESTMENT IN OVERTHECOUNTER TRADING YESTERDAY POPE CLOSED AT 6375 DOWN 225 9303260046 930326 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY YELTSIN STRUGGLES TO KEEP THE VANCOUVER SUMMIT WITH CLINTON ON TRACK WHILE THE RUSSIANS COULD YET REQUEST A SHIFT IN THE SITE FOREIGN MINISTER KOZYREV TELLS US OFFICIALS THAT A MOVE TO MOSCOW WOULD BE READ BY YELTSIN FOES AS A SIGN OF WEAKNESS AND COULD FURTHER INFLAME NATIONALIST FERVOR AFTER A REQUEST FROM KOZYREV THOUGH US OFFICIALS SAY THEY WILL SPEED UP THE ANNOUNCEMENT OF AID PLANS RATHER THAN WAIT FOR THE SUMMIT US OFFICIALS LIKELY WOULD USE A MOVE BY YELTSIN TO TAKE CONTROL OF THE CENTRAL BANK AS REASON TO FREE UP ALREADYPROMISED AID FROM THE INTERNATIONAL MONETARY FUND BUT TOP CLINTON AIDES ARE INCREASINGLY CONVINCED THAT THE INDUSTRIALIZED NATIONS WILL SOONER OR LATER HAVE TO COME UP WITH FAR MORE MONEY TO BAIL OUT RUSSIA THEY LIKE THE IDEA OF A WESTERNFINANCED SOCIAL SAFETY NET FOR DISPLACED RUSSIAN WORKERS BUT FEARING DOMESTIC POLITICAL OUTRAGE CONSIDER CALLING IT A CUSHION INSTEAD INTEREST GROUPS AIM TO PICK APART CLINTON'S EXPECTED HEALTH PACKAGE ONE THOUSAND AMA MEMBERS BLITZ CAPITOL HILL TO FIGHT CONTROLS ON MEDICAL FEES A COALITION OF LABOR UNIONS AND LARGE EMPLOYERS OPPOSES TAXING EMPLOYEE HEALTH BENEFITS THE ALCOHOL TOBACCO AND TRUCKING INDUSTRIES RELEASE STUDIES ASSERTING THAT EXCISE TAXES INCLUDING THE SIN TAXES EXPECTED TO HELP PAY FOR THE HEALTH PLAN DISCRIMINATE AGAINST LOW AND MIDDLEINCOME PEOPLE HOUSE MEMBERS OF BOTH PARTIES EXPRESS DOUBTS ABOUT CLINTON'S INSISTENCE ON PASSAGE THIS YEAR THEY CITE THE SCORES OF TOUGH DECISIONS INVOLVED AND FEARS THAT THE PUBLIC ISN'T PREPARED FOR THE ADDITIONAL TAXES THAT WILL BE REQUIRED TRYING TO RUSH IT THROUGH THIS YEAR AS A SORT OF FIRST GOAL IS WRONG SAYS SPEAKER FOLEY INFLATION'S INCREASE RAISES EYEBROWS BUT NOT INTEREST RATES AT THE FED FINANCIAL MARKETS SHRUG OFF THE 46 ANNUAL RATE OF THE LAST THREE MONTHS IN CONSUMER PRICES MINUS FOOD AND ENERGY FED OFFICIALS ARE DETERMINED TO HOLD ONTO THE PROGRESS THEY HAVE MADE IN GETTING INFLATION DOWN BUT OTHER INFLATION INDICATORS THE FED TRACKS REMAIN WELLBEHAVED GOLD PRICES ARE STABLE MONEYSUPPLY GROWTH SLUGGISH AND WAGE INCREASES MODERATE FED OFFICIALS DECIDE AGAINST ANY IMMEDIATE MOVE IN INTEREST RATES AT THIS WEEK'S MEETING THOUGH MORE BAD INFLATION NEWS COULD CHANGE THEIR ATTITUDE WITH SHORTTERM RATES ALREADY LOW ALL CLINTON WANTS IS TO HAVE THEM LEFT UNCHANGED AS THE ECONOMY STRENGTHENS THE CENTRAL BANK'S NATURAL INERTIA WILL BE A HELP FED OFFICIALS ARE PLEASED CLINTON DIDN'T URGE EASING BANK CAPITAL STANDARDS IN HIS ATTACK ON THE CREDIT CRUNCH CONSERVATIVE ACTIVISTS GIRD FOR A CLASH OVER CLINTON'S NOMINEE WHOEVER IT IS TO REPLACE JUSTICE WHITE THE FREE CONGRESS FOUNDATION SETS UP A MONITORING PROJECT WITH FAILED CONSERVATIVE NOMINEE ROBERT BORK AS ITS ADVISER THE GROUP IS DOING OPPOSITION RESEARCH ON ABOUT A DOZEN POTENTIAL CLINTON PICKS EQUAL OPPORTUNITY WHILE CLINTON AIDES CHARACTERIZE LIKELY SEC CHAIRMAN ARTHUR LEVITT AS AN ACTIVE DEMOCRATIC SUPPORTER ELECTION RECORDS SHOW HE ALSO HAS GIVEN TO REPUBLICANS DUPONT KEMP SIMPSON LUGAR WEICKER DOMENICI AND DOLE PEROT'S MILDER TONE TOWARD THE NORTH AMERICAN FREE TRADE AGREEMENT PUZZLES SOME IN CONGRESS BUT MEXICAN OFFICIALS OFFER A POSSIBLE EXPLANATION THEY SAY PEROT AND HIS SON HAVE BEEN TALKING TO THEM ABOUT BUILDING A NEW FREIGHT AIRPORT IN THEIR COUNTRY ANCHORS AWEIGH DEFENSE SECRETARY ASPIN PICKS FORMER MISSISSIPPI GOV RAY MABUS TO BE NAVY SECRETARY PENDING WHITE HOUSE APPROVAL IF CONFIRMED MABUS'S FIRST TASK WILL BE TO TRY TO RESOLVE FALLOUT FROM THE TAILHOOK SEXUALASSAULT SCANDAL CLINTON REFINES HIS TAX PROPOSALS AS CONGRESS PREPARES TO ALTER THEM HIS SWEETENING OF THE SMALLBUSINESS CAPITALGAINS BREAK FAILS TO QUELL CRITICISM FROM FANS OF SEN BUMPERS'S MORE GENEROUS PLAN SOME WAYS AND MEANS DEMOCRATS INCLUDING MATSUI AND LEVIN FEAR THAT LEAVING THE CAPITALGAINS RATE AT 28 WHILE RAISING THE TOP RATE ON ORDINARY INCOME TO 396 WOULD ENCOURAGE GAMEPLAYING THAT THE 1986 TAX REFORM ACT ELIMINATED THE INVESTMENT TAX CREDIT RUNS INTO TROUBLE FROM SKEPTICS ON THE HILL BIG COMPANIES URGE DROPPING IT AND USING THE SAVINGS TO ELIMINATE THE CORPORATE INCOME TAX INCREASE BUT WAYS AND MEANS MEMBERS MAY PREFER TO USE THE MONEY FOR OTHER TAX BREAKS THE REALESTATE LOBBY PRESSES FOR BREAKS FOR PROPERTY OWNERS WHO RESTRUCTURE DEBTS BIGBUSINESS ATTACKS ON CLINTON'S TAXES ON MULTINATIONALS SWAY SOME KEY DEMOCRATS SENS BAUCUS AND DANFORTH WORK TO MAKE THE CORPORATE R&D CREDIT MORE GENEROUS WHILE SEN BREAUX PRESSES TO EXEMPT WAITERS' TIPS FROM PAYROLL TAXES MINOR MEMOS DISCUSSING THE FED CHAIRMAN CLINTON ECONOMIC ADVISER RUBIN TELLS A GROUP OF BUSINESS ECONOMISTS THAT MANY IN THE WHITE HOUSE KNOW ALAN GREENBERG WELL GREENBERG IS THE HEAD OF BEAR STEARNS LISTENING TO SEN MOYNIHAN RUMINATE ON HIS DAYS IN INDIA SEN CHAFEE REMARKS THAT I'M GETTING A HARVARD EDUCATION WITHOUT PAYING TUITION ONLY IN WASHINGTON COMPTROLLER GENERAL BOWSHER SAYS THAT STATISTICALLY THE DIFFERENCE BETWEEN 45 BILLION AND 50 BILLION IS INSIGNIFICANT 9303260045 930326 WHAT'S NEWS BUSINESS AND FINANCE THE SENATE VOTED 5445 TO APPROVE CLINTON'S PROPOSAL TO SHRINK THE BUDGET DEFICIT BY 502 BILLION OVER FIVE YEARS WHILE BOOSTING SPENDING ON PROGRAMS INTENDED TO IMPROVE LONGTERM ECONOMIC GROWTH BUT THE PRESIDENT'S SHORTTERM ECONOMIC STIMULUS PACKAGE FACES TOUGHER OPPOSITION TAXES ON THE HEALTH INDUSTRY ARE BEING SERIOUSLY CONSIDERED BY CLINTON OFFICIALS TO FINANCE THEIR PLAN TO EXTEND HEALTH COVERAGE TO ALL AMERICANS INSURERS AND HOSPITALS MAY BE AFFECTED RJR NABISCO CHAIRMAN LOUIS GERSTNER PROMISED RJR HE WON'T TAKE TWO TOP AIDES WITH HIM TO IBM WHICH TODAY IS EXPECTED TO NAME HIM CEO SEPARATELY IBM'S DEBT RATING WAS CUT TWO NOTCHES BY MOODY'S AMID GLOOMY FORECASTS FOR MAINFRAME COMPUTERS THE SEC IS TAKING A TOUGH STANCE IN ENFORCING ITS NEW EXECUTIVEPAY DISCLOSURE RULES THE AGENCY SAYS MANY COMPANIES AREN'T GIVING SHAREHOLDERS ENOUGH DETAIL TO JUSTIFY PAY LEVELS PRIMERICA CHAIRMAN SANFORD WEILL EXERCISED STOCK OPTIONS WORTH 638 MILLION LAST YEAR AT CHRYSLER IACOCCA'S PAY MORE THAN TRIPLED TO 11 MILLION IN SALARY AND STOCK AWARDS ABC AND THE BBC AGREED TO FORM A WORLDWIDE NEWSGATHERING PARTNERSHIP FOR TELEVISION AND RADIO THE NETWORKS WOULD SHARE CORRESPONDENTS PRODUCERS FACILITIES AND FOOTAGE CREDIT LYONNAIS HIRED HOLLYWOOD'S CREATIVE ARTISTS AGENCY TO HELP THE FRENCH BANK MANAGE ITS AILING 25 BILLION ENTERTAINMENT LOAN PORTFOLIO AND TO HELP IT MAKE MORE INVESTMENTS BAXTER INTERNATIONAL PLEADED GUILTY TO A FELONY VIOLATION OF THE US BAN ON COOPERATION WITH THE ARAB BOYCOTT OF ISRAEL THE HOSPITAL SUPPLY COMPANY IS PAYING 66 MILLION IN FINES COMEX'S CHAIRMAN QUIT AS HEAD OF A TEAM NEGOTIATING A TAKEOVER OF THE FUTURES EXCHANGE BY CHICAGO'S BOARD OF TRADE REFLECTING COMEX MEMBERS' GROWING ANGER ABOUT THE PROPOSAL AN ENVIRONMENTAL GROUP IS JOINING THE BIDDING FOR RIGHTS TO POLLUTE THE AIR THE GROUP WOULD RETIRE THE RIGHTS SALES OF EXISTING HOMES SANK 6 IN FEBRUARY FROM THE MONTH BEFORE ANALYSTS BLAMED BAD WEATHER ON BOTH COASTS FOR THE UNEXPECTED SLOWDOWN ZIPPER MAKER YKK AGREED TO SETTLE FTC CHARGES THAT IT TRIED TO FIX PRICES WITH ITS CHIEF COMPETITOR TALON THE THRIFTCLEANUP AGENCY AUCTIONED OFF 502 MILLION IN MOSTLY SMALL NONPERFORMING LOANS FOR AN AVERAGE OF ABOUT 50 CENTS ON THE DOLLAR IN A SIGN OF STRENGTH IN THE REAL ESTATE MARKET SEVERAL DIET PROGRAM OPERATORS ARE BEING INVESTIGATED BY THE FTC FOR POSSIBLE DECEPTIVE ADVERTISING WELLCOME'S PROFIT CLIMBED 33 IN THE LATEST SIXMONTH PERIOD BUT THE BRITISH DRUG MAKER'S STOCK SANK 8 IN LONDON ON A PESSIMISTIC OUTLOOK FOR THE COMPANY'S LONGTERM SALES GROWTH BONDS LEHMAN BROTHERS TREASURY INDEX 503063 OFF 1423 COMMODITIES OIL 2041 A BARREL UP 17 CENTS DOW JONES FUTURES INDEX 12873 OFF 055 SPOT INDEX 12674 OFF 029 DOLLAR 11730 YEN OFF 030 16423 MARKS UP 00048 9303260044 930326 LEISURE & ARTS ON SPORTS BOSOX FANS EXPECT THE WORST BY FREDERICK C KLEIN WINTER HAVEN FLA THE USUAL WAY FOR A CERTIFIED SPORTSWRITER TO DO A PREVIEW STORY ON A MAJOR LEAGUE BASEBALL TEAM IS TO INTERVIEW THE MANAGER AND PLAYERS IN SPRING TRAINING AND REPORT WHAT THEY SAY WHAT THEY ALWAYS SAY IS THAT NO MATTER HOW BAD THINGS WERE LAST SEASON THEY WILL BE BETTER IN THE ONE AHEAD THE SURE AND CERTAIN KNOWLEDGE THAT SUCH AN ASSESSMENT WILL TURN OUT WRONG ABOUT HALF THE TIME RARELY INTRUDES INTO SUCH PIECES OPTIMISM NOT ONLY IS NATURAL TO SPRING BUT IT ALSO HELPS SELL TICKETS FOR THE MONTHS AHEAD BUT ANOTHER LESSTAKEN PATH IS TO INTERVIEW OTHER EXPERTS ON A TEAM'S PROSPECTS THE FANS THEIR VIEWS WHILE NOT UNCLOUDED BY SENTIMENT ARE UNAFFECTED BY PECUNIARY CONSIDERATIONS THEY ARE AFTER ALL THE PAYERS RATHER THAN THE PAYEES IN THE PROSPORTS COMPACT FURTHER ONE SHOULD NOT DISCOUNT A LIFETIME OF GAME WATCHING AS A CREDENTIAL FOR BASEBALL EXPERTISE I THINK MOST PEOPLE IN ATTENDANCE AT ANY BIGLEAGUE CONTEST COULD CHANGE PLACES WITH EITHER MANAGER AND NOT DO A WORSE JOB STRATEGYWISE SO THERE I WAS IN THE STANDS AT CHAIN O'LAKES PARK ON A BLUSTERY AFTERNOON HERE LAST WEEK LOOKING FOR BOSTON RED SOX FANS TO TALK TO BEFORE THE TEAM WAS TO PLAY THE CLEVELAND INDIANS IN A SPRINGTRAINING GAME THE RED SOX YOU'LL RECALL FINISHED LAST IN THE AMERICAN LEAGUE EAST LAST YEAR WITH A 7389 WONLOST RECORD AND TEAM MANAGEMENT TO USE THE VERNACULAR BACKED UP THE TRUCK DURING THE OFFSEASON OUT WENT SUCH ALONGINAGE STALWARTS AS WADE BOGGS ELLIS BURKS JACK CLARK JODY REED AND TOM BRUNANSKY IN CAME THE LIKES OF ANDRE DAWSON IVAN CALDERON SCOTT FLETCHER JEFF RUSSELL AND BOB MELVIN FORMERLY OTHER TEAMS' ALONGINAGE STALWARTS AND THERE IDENTIFIABLE BY THEIR DARKBLUE CAPS WITH RED B'S WERE THREE VENERABLE RED SOX FANS WILLIAM JACOBS RUTH ROUGHT AND ROY MCLEAN HOW'S THE TEAM GOING DO THIS YEAR I ASKED THEM IT'S GONNA BE UGLY GROWLED MCLEAN A RETIREE FROM PLYMOUTH MASS PROBABLY NOT GOOD ROGER CLEMENS BOSTON'S AND MAYBE THE GAME'S BEST PITCHER CAN'T DO IT ALONE SAID JACOBS A RETIREE FROM LEOMINSTER MASS YOU'RE ALL PRETTY DOWN ON THE SOX HUH I ASKED BY WAY OF CONFIRMATION OH NO SAID MS ROUGHT I WAS TALKING ABOUT THE NEW YORK METS I'M A METS FAN I JUST GOT THIS CAP BECAUSE I WAS COLD THUS THE SCORE BEGAN AT NO BETTER THAN 02 AGAINST A RED SOX RESURGENCE IN 1993 AND THE TEAM FARED SIMILARLY THROUGH A DOZEN MORE INTERVIEWS IN A CROWD WELL STOCKED WITH BOSTON FANS EVEN THOUGH THE BALLPARK IS THE INDIANS' BASE THIS SPRING THE RED SOX TRAINED IN WINTER HAVEN FROM 1966 UNTIL THEY MOVED TO FORT MYERS THIS YEAR ONLY ONE PERSON AND A YOUNGISH ONE AT THAT THOUGHT THE SOX WOULD FINISH AS HIGH AS THIRD IN THEIR DIVISION AND THE BEST THAT MOST OF THE REST COULD ENVISION WAS SIXTH PLACE AMONG THE AL EAST'S SEVEN TEAMS AHEAD OF ONLY THE DETROIT TIGERS THAT GANG IS SO PITCHINGPOOR IT MAY BE FORCED TO EMULATE THE 1899 CLEVELAND SPIDERS MAYBE BASEBALL'S WORST BIGLEAGUE TEAM EVER AND DRAFT A HOTEL CLERK FOR THE PURPOSE NOW IT COULD BE ARGUED THAT RED SOX FANS ARE CONGENITALLY PESSIMISTIC AS A RESULT OF THEIR TEAM'S NOT HAVING WON A WORLD SERIES SINCE 1918 BUT MORE RECENT SNIFFS OF PROSPERITY PENNANTS IN 1975 AND 1986 AND DIVISION TITLES IN 1988 AND 1990 FOR INSTANCE SHOULD HAVE LEAVENED THAT MOREOVER WHEN IT CAME TO SPECIFICS THEY WERE NOTHING IF NOT EMPHATIC TAKE THEIR INFIELD SAID TODD KASTAN A NATIVE BOSTONIAN WHO ALTHOUGH HE'S MOVED TO SAN FRANCISCO STILL SCHEDULES HIS VACATION FROM HIS CUSTOMSHOUSEBROKERAGE JOB SO HE CAN SPEND A SPRING WEEK WITH HIS BELOVED RED SOX VALENTIN JOHN AGE 26 A SECONDYEAR MAN IS THE NEW SHORTSTOP OF THE FUTURE THEY TELL US ABOUT EVERY YEAR OR TWO THE SECOND BASEMAN TIM NAEHRING IS YOUNG 25 BUT HE'S ALREADY MISSED TWO SEASONS WITH BACK PROBLEMS AND NOW HE'S GOT A SORE SHOULDER AND IS SCOTT COOPER GOING TO MAKE US FORGET WADE BOGGS AT THIRD BASE SCOTT COOPER PLEASE OR TAKE THEIR OUTFIELD PLEASE THEY GOT RID OF BRUNANSKY AND BURKS WHICH WAS FINE BUT WHO'D THEY GET SAID JIMMY FIGUERADO A BUILDING CONTRACTOR FROM SWANSEA MASS DAWSON'S OLD 38 AND CAN'T RUN WHICH MEANS HE'LL FIT RIGHT IN HERE INDIVIDUALS ON OTHER TEAMS STOLE MORE BASES THAN THE RED SOX'S TEAM TOTAL OF 44 LAST SEASON CALDERON'S A HARDHEAD NO BETTER THAN AN EVEN SWAP AS I SEE IT EVEN RED SOX PITCHING WHICH WITH CLEMENS AND THE DURABLE FRANK VIOLA CONTRIBUTING 31 WINS AND 485 INNINGS RANKED SECOND IN THE LEAGUE IN EARNED RUN AVERAGE LAST SEASON CAME IN FOR COMPLAINT PARTICULARLY THE BULLPEN REARDON JEFF DEALT TO ATLANTA LATE IN THE LAST CAMPAIGN WAS INEFFECTIVE AS A CLOSER LAST YEAR AND RUSSELL FORMERLY OF THE TEXAS RANGERS AND OAKLAND A'S IS COMING OFF ARM TROUBLE AND DOESN'T LOOK MUCH BETTER OPINED ACCOUNTANT DAVID LEPAGE A RHODE ISLAND NATIVE TRANSPLANTED TO JACKSONVILLE FLA LASTPLACE MANAGERS RARELY GET OFF UNSCATHED IN THIS SORT OF GRADING AND THE RED SOX'S AMIABLE BUTCH HOBSON WAS NO EXCEPTION IT SEEMED LIKE HE VACILLATED TOO MUCH LAST SEASON SAID ESTHER HERDEG A RETIREE FROM HAMILTON MASS HE'S TOO NICE A GUY TO BE A BASEBALL MANAGER THESE DAYS SAID FIGUERADO ABOUT THE ONLY REAL DISAGREEMENT AMONG THE FANS WAS OVER WHETHER THE RED SOX'S MALAISE WOULD BE SHORTLIVED SOME SAW A RETURN TO THE DARK AGE OF THE 1960S WHEN BOSTON INHABITED THE LEAGUE'S SECOND DIVISION FOR SEVEN STRAIGHT YEARS OTHERS THOUGHT THE BLOSSOMING OF YOUNG POWER HITTER MO VAUGHN AND MINORLEAGUE PROSPECTS OUTFIELDER GREG BLOSSER AND PITCHERS FRANK RODRIGUEZ AND AARON SELES WOULD TURN THINGS AROUND BEFORE THAT HAPPENS AND SOME SAW SILVER LININGS IN DEFEAT THE RED SOX USED TO KEEP US HANGING ALL SEASON AND BREAK OUR HEARTS IN SEPTEMBER SAID STEVE BLANDFORD A BOSOX FAN FROM TORONTO LAST YEAR AT LEAST THEY WERE DEAD BY JULY AND WE COULD ENJOY THE REST OF OUR SUMMERS 9303260043 930326 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH COMPANY UNITEL TO OFFER NEW USCANADIAN NETWORK AMERICAN TELEPHONE & TELEGRAPH CO AND CANADA'S UNITEL COMMUNICATIONS INC SAID THEY WILL BEGIN LIMITED NEW SERVICE OF AN ADVANCED VIRTUAL NETWORK FOR COMPANIES THAT PROVIDES SEAMLESS VOICE AND DATA COMMUNICATIONS THROUGHOUT THE US AND CANADA AT&T BASED IN NEW YORK SAID THAT FOUR MAJOR COMPANIES DIGITAL EQUIPMENT CORP DRESSER INDUSTRIES INC HEWLETTPACKARD CO AND HONEYWELL INC WILL BEGIN USING THE ADVANCED TELECOMMUNICATIONS SYSTEM IN THE THIRD QUARTER THE SERVICE WILL BE BROADLY AVAILABLE SOON AFTER THAT AT&T SAID IN A JOINT STATEMENT WITH UNITEL WHICH IS BASED IN TORONTO THE ADVANCED VIRTUAL NETWORK IS IMPORTANT BECAUSE ABOUT 90 OF US MULTINATIONAL COMPANIES HAVE CANADIAN LOCATIONS AT&T SAID THE VIRTUAL NETWORK USING NEW AT&T DIGITAL SWITCHING SYSTEMS ALLOWS COMPANIES TO HAVE HIGHQUALITY TELECOMMUNICATIONS ACROSS THE USCANADA BORDER WITHOUT INVESTING IN THEIR OWN PRIVATE NETWORKS 9303260042 930326 BUSINESS BRIEF RETIX SHAREHOLDERS ACCUSE OFFICERS OF MAKING FALSE STATEMENTS FIVE SHAREHOLDERS FILED LAWSUITS AGAINST RETIX AND ITS TOP OFFICERS CHARGING THAT THEY MADE FALSE AND MISLEADING STATEMENTS THAT FAILED TO DISCLOSE PROBLEMS WITH NEW PRODUCTS THE SUITS FILED IN FEDERAL COURT IN LOS ANGELES SEEKING CLASSACTION STATUS CAME AFTER AN ANNOUNCEMENT THIS WEEK THAT THE COMPANY MAY BREAK EVEN OR INCUR A SMALL TO MODERATE LOSS IN THE FIRST QUARTER ENDING APRIL 3 RETIX A SANTA MONICA CALIF MAKER OF COMPUTER SOFTWARE HAD SAID IT EXPECTED EARNINGS GROWTH THE SHAREHOLDERS ALSO CHARGED THAT INSIDERS SOLD SUBSTANTIAL AMOUNTS OF RETIX STOCK BEFORE THE ANNOUNCEMENT IN PARTICULAR STEPHEN W FRANKEL CHIEF EXECUTIVE OFFICER SOLD 60000 SHARES FOR 910000 THE SUITS ALLEGED RONALD RUDOLPH CHIEF FINANCIAL OFFICER SAID THE COMPANY DIDN'T HAVE ANY COMMENT YET BECAUSE IT HADN'T BEEN SERVED WITH THE SUITS IN NATIONAL OVERTHECOUNTER TRADING RETIX SHARES ROSE 125 CENTS TO 650 9303260041 930326 COMMODITIES ORANGE JUICE FUTURES JUMP NEARLY TWO CENTS IN HEAVY TRADING ON IMPROVING RETAIL DEMAND BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ORANGE JUICE FUTURES BUOYED BY IMPROVING RETAIL DEMAND JUMPED NEARLY TWO CENTS A POUND IN ACTIVE TRADING YESTERDAY YESTERDAY'S 170 CENT RISE TO 8490 CENTS A POUND FOR THE ACTIVELY TRADED MAY CONTRACT COMES AMID PERSISTENTLY VOLATILE TRADING IN THE FROZENCONCENTRATED ORANGE JUICE FUTURES MARKET THE VOLATILITY TRADERS AND ANALYSTS SAY IS THE RESULT OF TWO WIDELY HELD PERCEPTIONS IN THE MARKET THAT THERE IS IMPROVING DEMAND FROM US JUICE RETAILERS BUT AT THE SAME TIME THE WORLD MARKET REMAINS GLUTTED I THINK THE MARKET COULD CONTINUE TO DRIVE HIGHER ON BETTER THAN EXPECTED DEMAND SAID JUDITH GANES AN ANALYST WITH MERRILL LYNCH IN NEW YORK SOMEHOW THIS MARKET ALWAYS FINDS A WAY TO MAKE A COMEBACK THERE ARE LOTS OF SHORT POSITIONS HELD BY THE INDUSTRY THAT WILL NEED TO BE COVERED IF THE MARKET CONTINUES TO RISE A SHORT POSITION IN THE FUTURES MARKET IS A WAGER THAT RAW MATERIAL PRICES WILL FALL THE MOST RECENT REPORTS ON RETAIL DEMAND SHOW THAT LOW PRICES HAVE BEEN ATTRACTING OVERALL DEMAND IN US SAID STEPHEN PLATT A SENIOR COMMODITY ANALYST WITH DEAN WITTER IN CHICAGO CONCERN THAT THE RECENT STORMS MIGHT DESTROY THE FLORIDA CITRUS CROP HAD ALSO BOOSTED PRICES IN RECENT WEEKS AS IT TURNED OUT THE HEAVY WINDS AND LOW TEMPERATURES DID VERY LITTLE DAMAGE TO THE ORANGE CROP OF CENTRAL FLORIDA FLORIDA STATE AGRICULTURE OFFICIALS HAVE SAID THAT ONLY A MINIMUM LOSS IS EXPECTED FROM THE STORMS AND THE COLD TEMPERATURES WHAT SEEMS TO BE SUPPORTING THE MARKET MORE THAN THE WEATHER MR PLATT SPECULATES IS THAT BRAZILIAN JUICE PROCESSORS APPEAR TO BE REFRAINING FROM PUTTING PRODUCT ONTO THE INTERNATIONAL MARKET AND MAY IN FACT BE BUYING FLORIDA JUICE TO KEEP THE CASH MARKET STRONGER THAN IT OTHERWISE WOULD THERE'S BEEN SOME TALK OF BRAZILIAN GROUPS TAKING FLORIDA JUICE INSTEAD OF SHIPPING BRAZILIAN JUICE OUT MR PLATT SAID WITH FUTURES PRICES STILL WEAK IN HISTORICAL TERMS AS LOW AS 69 CENTS A POUND IN EARLY FEBRUARY THERE HAS BEEN LITTLE INCENTIVE FOR BRAZILIAN GROWERS TO EXPORT THEIR JUICE TO THE US MARKET IF THE MAY CONTRACT WERE TO APPROACH THE 1 A POUND LEVEL THEN A RUSH TO EXPORT IN BRAZIL WOULD PROBABLY BE FORTHCOMING THE BREAKEVEN POINT FOR MANY BRAZILIAN GROWERS IS A 1 A POUND TRADERS SAY IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS PRICES OF US SOYBEAN FUTURES CONTRACTS SLIPPED AMID FORECASTS FOR FAVORABLE HARVESTING WEATHER IN BRAZIL WHICH IS A MAJOR COMPETITOR OF THE US IN THE WORLD SOYBEAN TRADE BRAZIL'S SOYBEAN HARVEST IS ABOUT 25 COMPLETE AND MANY FARMERS ARE REPORTING RECORD YIELDS IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR MAY DELIVERY SANK 55 CENTS A BUSHEL TO SETTLE AT 58675 SOYBEAN PRICES MIGHT ATTRACT SOME SUPPORT TODAY IF TRADERS CAN CONFIRM REPORTS THAT RUSSIA IS INTERESTED IN BUYING A LARGE AMOUNT OF US SOYBEAN MEAL WITH CASH THE REPORTS ARE SURPRISING BECAUSE RUSSIA HAS RELIED ON EASY CREDIT TO ACQUIRE US FARM COMMODITIES AND HAS BEEN DEFAULTING ON THOSE LOANS SINCE NOVEMBER THE SOFT RED WINTER WHEAT CONTRACT FOR MAY DELIVERY ROSE SLIGHTLY IN PART BECAUSE THE AGRICULTURE DEPARTMENT IS BUYING US WHEAT FOR ITS PREVIOUSLY ANNOUNCED DONATION TO RUSSIA THE AGRICULTURE DEPARTMENT USUALLY MAKES DONATIONS FROM SURPLUS STOCKPILES BUT A TIGHT SUPPLY OF GOVERNMENTOWNED GRAIN IS FORCING THE DEPARTMENT TO BUY ON THE OPEN MARKET COFFEE FUTURES PRICES DECLINED 070 CENT TO 6170 CENTS A POUND ON THE COFFEE SUGAR & COCOA EXCHANGE AMID PERSISTENT SKEPTICISM THAT A NEW ROUND OF TALKS ON AN EXPORT ACCORD WILL LEAD TO A FORMAL AGREEMENT BETWEEN PRODUCER AND CONSUMER NATIONS THE TALKS RESUMED IN LONDON ON TUESDAY TRADERS SAID THE FUTURES MARKET REMAINS BEARISH BECAUSE OF AN ABUNDANCE OF CERTIFIED STOCKS IN US WAREHOUSES ENERGY PETROLEUM FUTURES WERE UP AGAIN BUT THE NATURAL GAS MAY CONTRACT DECLINED AFTER THE BIG RUNUPS EARLIER IN THE WEEK IN BOTH CASES TRADERS DESCRIBED THE MARKET AS MAINLY TECHNICALLY DRIVEN BUT OIL PRICES REMAINED PROPPED UP BY THE WEEK'S SPATE OF BULLISH INDUSTRY DATA WHICH CITED SHARPLY LOWER US CRUDE OIL AND GASOLINE INVENTORIES SOME OTHER FUNDAMENTAL FACTORS YESTERDAY INCLUDED A COLLISION IN THE HOUSTON SHIP CHANNEL WHICH THREATENED TO CURB CRUDE SUPPLIES TO SOME GULF COAST REFINERIES ALSO WAGE NEGOTIATIONS FOR VENEZUELA'S OIL WORKERS WERE REPORTED STALLED RAISING THE THREAT OF A STRIKE FOR THAT MAJOR SUPPLIER OF OIL TO THE US AS A RESULT LIGHT LOWSULFUR CRUDE OIL FOR MAY DELIVERY SETTLED 17 CENTS A BARREL HIGHER AT 2041 ON THE NEW YORK MERCANTILE EXCHANGE THE FUTURES PRICE OF MAY NATURAL GAS FELL HOWEVER IT SETTLED AT 2023 A MILLION BRITISH THERMAL UNITS OR APPROXIMATELY ONE THOUSAND CUBIC FEET THAT WAS DOWN 27 CENTS FROM WEDNESDAY'S SETTLEMENT BUT THE MAY CONTRACT WAS STILL SHARPLY HIGHER FOR THE WEEK AFTER WEDNESDAY'S RECORD TRADING TRADERS SUGGESTED THE BULLISH TREND FOR GAS WAS STILL INTACT 9303260040 930326 CREDIT MARKETS SOLID DEMAND AT US FIVEYEAR AUCTION FAILS TO INSPIRE BUYERS AS TREASURY PRICES DECLINE BY THOMAS D LAURICELLA AND TERENCE DONNELLY SPECIAL TO THE WALL STREET JOURNAL NEW YORK SOLID DEMAND AT THE TREASURY'S AUCTION OF FIVEYEAR NOTES FAILED TO INSPIRE AN OTHERWISE LETHARGIC MARKET AND MOST TREASURY PRICES DROPPED MODERATELY AS LONGTERM SECURITIES DROPPED SHARPLY THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/2 POINT OR MORE THAN 5 FOR A BOND WITH A 1000 FACE AMOUNT TO 103 11/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE ROSE TO 686 FROM 682 ON WEDNESDAY THE 10YEAR NOTE DROPPED 1/8 POINT TO 101 30/32 TO YIELD 598 UP FROM 596 THE TREASURY SOLD 1101 BILLION OF FIVEYEAR NOTES AT A YIELD OF 519 WHICH WAS A LOWER YIELD THAN MOST TRADERS HAD EXPECTED AND A REFLECTION OF MOREAGGRESSIVE BIDDING IT FOLLOWED A WELLRECEIVED TWOYEAR NOTE AUCTION WEDNESDAY WE'VE COME THROUGH BOTH THE TWOYEAR AND FIVEYEAR NOTE AUCTIONS WITH EACH AUCTION GOING FINE SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG & CO THE UNDERLYING DATA SUPPORTING THE AUCTION RESULTS INDICATE THAT THE ISSUES HAD SOME INTEREST AND WERE TAKEN DOWN AT REASONABLE LEVELS ONE OF THE INDICATIONS OF GOOD INTEREST IN THE AUCTION WAS THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS TENDERED TO THOSE ACCEPTED WHICH CAME IN AT 264TO1 THAT COMPARED WITH 199TO1 AT THE FEBRUARY AUCTION AND WAS ALSO ABOVE THE 237TO1 AVERAGE POSTED IN THE SIX PREVIOUS AUCTIONS ALSO REFLECTING HEALTHY DEMAND WAS THE AMOUNT OF NONCOMPETITIVE BIDS FROM INDIVIDUAL INVESTORS WHICH WAS 789 MILLION UP FROM 722 MILLION AT LAST MONTH'S AUCTION AND ABOVE THE 669 MILLION AVERAGE OF THE SIX PRIOR AUCTIONS BUT IN A REPEAT OF THE TRADING FOLLOWING A REASONABLY STRONG TWOYEAR NOTE AUCTION WEDNESDAY THE MARKET FAILED TO GET MUCH OF A LIFT FROM THE SOLID FIVEYEAR NOTE SALE THE AUCTION WENT WELL BUT OVERALL THE MARKET FEELS LIKE IT'S LOST ITS SPARKLE SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS INSTITUTIONAL INTEREST IN THE MARKET WAS SCARCE BEFORE DURING AND AFTER THE AUCTION YESTERDAY TRADERS SAID AS A RESULT THE BIDDING WAS LEFT TO WALL STREET PROFESSIONALS IT WAS PROBABLY A DEALERBASED AUCTION BUT NEVERTHELESS IT PRODUCED RESULTS THAT WERE ON THE PLEASANT SIDE MR KARYDAKIS SAID DEALERS WERE SAID TO HAVE BID AGGRESSIVELY TO CLOSE OUT ARBITRAGE TRADES AND TO COVER SHORTS POSITIONS WHERE THEY HAD SOLD THE FIVEYEAR NOTES IN ANTICIPATION OF BUYING THE ISSUE BACK AT THE AUCTION AT A LOWER PRICE ASIDE FROM BUYING BY INVESTORS MOVING CASH OUT OF THE MORTGAGEBACKED SECURITIES MARKET AND BIDDING RELATED TO MUNICIPAL REFINANCING STRATEGIES INSTITUTIONAL INTEREST HAS BEEN LIGHT OF LATE PORTFOLIOS HAVE BY AND LARGE STAYED ON THE SIDELINES IN THE LAST FEW WEEKS MR KARYDAKIS SAID ASIDE FROM THE AUCTION ACTIVITY WAS VERY LIGHT THROUGHOUT THE SESSION THE ONLY REAL FEATURE TO THE MARKET WAS PRESSURE ON THE 30YEAR TREASURY BOND THE BOND HAS SEEN SELLING THROUGHOUT THE COURSE OF THE LAST TWO DAYS SAID BERNARD KANE A MANAGING DIRECTOR AT FUJI SECURITIES INC PARTICIPANTS SAID THE SELLING AT THE LONG END WASN'T RELATED TO ANY ONE PARTICULAR EVENT BUT RATHER WAS DUE TO TRADERS PLAYING THE RANGES THAT THE MARKET HAS ESTABLISHED BONDS PERFORMED POORLY AFTER THE THREE O'CLOCK CLOSE OF FUTURES TRADING BUT I THINK IT'S REFLECTIVE OF THE NOTION OF A TRADING RANGE SAID MR LEUZZI OF WARBURG WE'RE SORT OF LANGUISHING IN A TRENDLESS ENVIRONMENT BY THE END OF TRADING THE LACK OF FOLLOWTHROUGH BUYING LEFT THE WHENISSUED FIVEYEAR NOTE YIELDING 522 UP FROM 519 AT THE AUCTION AND UP FROM 520 ON WEDNESDAY THE WHENISSUED TWOYEAR NOTE WAS YIELDING 392 LATE YESTERDAY DOWN FROM 394 ON WEDNESDAY THERE WAS ONLY A MUTED RESPONSE TO ECONOMIC DATA RELEASED DURING THE MORNING YESTERDAY THE LABOR DEPARTMENT REPORTED JOBLESS CLAIMS FELL 2000 TO 349000 IN THE WEEK ENDED MARCH 20 AND THE NATIONAL ASSOCIATION OF REALTORS REPORTED EXISTING HOME SALES FELL 61 IN FEBRUARY WITH SUPPLY OUT OF THE WAY THE MARKET'S FOCUS HAS NOW SHIFTED TO NEXT FRIDAY WHEN THE MARCH EMPLOYMENT REPORT IS SCHEDULED TO BE RELEASED THE SCRUTINY OF THE MARCH EMPLOYMENT FIGURES WILL BE ESPECIALLY INTENSE IN THE WAKE OF THE UNEXPECTEDLY LARGE 365000 RISE IN NONFARM PAYROLL EMPLOYMENT DURING FEBRUARY THAT GAIN HAS BEEN LARGELY DISMISSED BY THE MARKET AS AN ABERRATION THAT OVERSTATED THE TRUE PACE OF JOB GROWTH HERE ARE THE RESULTS OF YESTERDAY'S AUCTION OF FIVEYEAR NOTES BY THE TREASURY ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED MARCH 31 AND MATURE MARCH 31 1998 PRICES OF MUNICIPAL BONDS ENDED UNCHANGED TO 5/8 POINT LOWER THEY SLIPPED IN EARLY TRADING AND REMAINED WEAK ALL SESSION SOME MUNI SPECIALISTS ATTRIBUTED THE MARKET'S WEAK TONE TO CONCERNS ABOUT ALL THE NEW ISSUES FLOWING INTO THE MARKET WHICH SEEM TO BE COMING FASTER THAN THEY CAN BE ABSORBED AMONG ACTIVELY TRADED MUNIS DENVER'S 675 AIRPORT REVENUE BONDS OF 2022 FINISHED 1/2 LOWER AT 100 1/8 TO YIELD 671 THOSE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX THE LARGEST NEW OFFERING YESTERDAY WAS NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP'S 3528 MILLION ISSUE OF SERIES 1993B REFUNDING BONDS THEY WERE BROUGHT TO THE MARKET BY A MORGAN STANLEY & CO GROUP AT A REPRICING YIELDS FOR BONDS DUE IN 1999 2002 AND 2003 WERE TRIMMED 005 PERCENTAGE POINT DUE TO HEAVY DEMAND HOWEVER YIELDS FOR BONDS DUE IN 2016 AND 2021 WERE RAISED 002 PERCENTAGE POINT TO ATTRACT BUYERS ALSO NEW 2009 AND 2013 SECURITIES WERE ADDED AT THE REPRICING THE 2009 BONDS ARE 550 ISSUES PRICED TO YIELD 570 AND THE 2013 SECURITIES ARE 5625 ISSUES PRICED TO YIELD 590 FOLLOWING THE REPRICING YIELDS RANGE FROM 450 IN 1999 TO 597 IN 2021 THE INITIAL YIELD SCALE WAS 455 IN 1999 TO 595 IN 2021 THE BONDS HAVE BEEN RATED SINGLEAPLUS BY FITCH INVESTORS SERVICE INC BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP ARE EXPECTED TO ASSIGN SINGLEA RATINGS DIGITAL EQUIPMENT CORP WHICH RETURNED TO THE PRIMARY MARKET YESTERDAY AFTER A FOURMONTH HIATUS NEEDED TO GET OVER A FEW HURDLES BEFORE SUCCESSFULLY PLACING A NEW 30YEAR ISSUE THE COMPUTER SYSTEMS SUPPLIER OFFERED 250 MILLION OF 30YEAR BONDS AMID INVESTOR CONCERNS ABOUT COMPUTER MAKERS IN GENERAL AND PROBLEMS RELATED TO THE DEAL'S CALL STRUCTURE AND MATURITY HAD DIGITAL WAITED ANOTHER DAY TO PRICE THE ISSUE IT MIGHT HAVE FAILED THAT IS BECAUSE LATE YESTERDAY MOODY'S INVESTORS SERVICE INC LOWERED THE SENIOR DEBT RATING OF INTERNATIONAL BUSINESS MACHINES CORP WHICH IS CONSIDERED THE BELLWETHER COMPUTER MAKER BY MANY INVESTORS IBM'S SENIOR DEBT RATING WAS LOWERED TO SINGLEA1 FROM DOUBLEA2 AMONG SEASONED ISSUES MOST HIGHGRADE CORPORATES ENDED FLAT TO 1/4 POINT LOWER TRADERS AND INVESTORS SAID SPREADS BETWEEN CORPORATE BOND YIELDS AND COMPARABLE TREASURYS CONTINUE TO WIDEN REFLECTING CONCERNS THAT INTEREST RATES MAY HAVE BOTTOMED FEARS OF INFLATION AND THE CONTINUING POLITICAL CRISIS IN RUSSIA JUNK BONDS CLOSED FLAT TO 1/8 POINT HIGHER IN LIGHT VOLUME THE DIGITAL OFFERING WAS PRICED WITH 775 COUPONS AT 98512 TO YIELD 788 THE BONDS WERE PRICED AT A SPREAD OF 104 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND THE DEBENTURES RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY STANDARD & POOR'S CORP WERE SOLD THROUGH DEALERS LED BY LEHMAN BROTHERS THE ISSUE WAS ALSO NONCALLABLE MEANING THAT THE COMPANY CAN'T FORCE INVESTORS TO SELL THE BONDS BACK TO DIGITAL IF IT WANTS TO REFINANCE THE BONDS AT LOWER INTEREST RATES IN PREPRICING DISCUSSIONS WITH INVESTORS THE COMPANY HAD PROPOSED OFFERING THE 30YEAR ISSUE WITH AN OPTION TO CALL THE BONDS AFTER 10 YEARS COMPANY OFFICIALS SAID HOWEVER INVESTORS HAVE RECENTLY SHOWN A GREATER DEMAND FOR NONCALLABLE INDUSTRIAL ISSUES TRADERS SAID AND THE COMPANY OPTED FOR A NONCALLABLE ISSUE PRICES OF MORTGAGE SECURITIES ENDED SLIGHTLY LOWER IN EXTREMELY LIGHT SECONDARY DEALINGS WHILE PRIMARY MARKET ACTIVITY HEATED UP MORE THAN 2 BILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE ANNOUNCED BY FEDERAL HOME LOAN MORTGAGE CORP THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ADDED A TOTAL OF 11 BILLION TO THREE OUTSTANDING STRIPPED MORTGAGE SECURITIES DEALS CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9303260039 930326 BUSINESS BRIEF QUEST MEDICAL INC MEDICAL DEVICE MAKER POSTS LOSS FOR ITS FOURTH QUARTER QUEST MEDICAL INC POSTED A FOURTHQUARTER LOSS OF 12 MILLION OR 21 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 302000 OR SIX CENTS A SHARE THE DALLAS MAKER OF MEDICAL DEVICES BLAMED THE LOSS ON LOWERTHANEXPECTED SALES REDUCED PROFIT MARGINS HIGH RESEARCH AND DEVELOPMENT EXPENSES AND A PRETAX CHARGE OF 12 MILLION THE CHARGE RESULTED FROM THE WRITEOFF OF ASSETS OF CLINITHERM CORP A HYPOTHERMIA DEVICE MAKER THAT QUEST ACQUIRED IN A CHAPTER 7 FORECLOSURE PROCEEDING IN JULY 1991 REVENUE ROSE 3 TO 34 MILLION FROM 33 MILLION A YEAR EARLIER THE CHARGE DOESN'T BOTHER ME SAID STUART M LINDE AN ANALYST WITH FAHNESTOCK/CHRISTOPHER IN NEW YORK THEIR EXISTING BUSINESS HAS SLOWED A BIT AND THAT HURT MR LINDE SAID HE HAD ESTIMATED QUEST WOULD EARN EIGHT OR NINE CENTS A SHARE IN THE QUARTER HE EXPECTS A SOFT FIRST HALF BUT ESTIMATED THAT QUEST WOULD EARN ABOUT 25 CENTS A SHARE FOR ALL OF 1993 IN 1992 QUEST EARNED 194000 OR FOUR CENTS A SHARE DOWN FROM 11 MILLION OR 22 CENTS A SHARE IN 1991 REVENUE ROSE TO 136 MILLION FROM 107 MILLION 9303260038 930326 BUSINESS BRIEF BERTELSMANN AG WORLDWIDE SALES ROSE 69 TO 538 BILLION IN 6 MONTHS BERTELSMANN AG REPORTED WORLDWIDE SALES ROSE 69 TO 88 BILLION MARKS 538 BILLION IN THE FIRST SIX MONTHS OF THE FISCAL YEAR THAT BEGAN JULY 1 DOMESTIC SALES SURGED 11 TO 34 BILLION MARKS WHILE SALES IN FOREIGN MARKETS WERE UP 45 TO 54 BILLION MARKS NO PROFIT FIGURES WERE DISCLOSED THE GERMAN MEDIA COMPANY DEEMED THE OUTLOOK FOR THE NEXT SIX MONTHS POSITIVE AND PREDICTED IT WOULD AGAIN PAY A 15 DIVIDEND ON PARTICIPATION CERTIFICATES THE COMPANY HASN'T ISSUED SHARES AND THE CERTIFICATES COMBINE ASPECTS OF BOTH STOCKS AND BONDS THE SIXMONTH SALES FIGURES WERE BETTER THAN BERTELSMANN HAD EXPECTED WE HAVE SURPRISED OURSELVES BY PERFORMING SO WELL IN A VERY DIFFICULT SITUATION A COMPANY SPOKESMAN SAID THE GROUP ATTRIBUTED THE IMPROVEMENT TO THE STRENGTH OF ITS US OPERATIONS THE PROFITABILITY OF ITS CORE BUSINESSES AND THE REDUCED FINANCIAL BURDEN OF MAJOR INVESTMENTS MADE IN RECENT YEARS 9303260037 930326 ECONOMY AUTO MAKERS TO RAISE OUTPUT IN 2ND QUARTER WITH SALES PICKING UP RISE OF 111 IS PLANNED BY 10 MAJOR US FIRMS BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT US AUTO MAKERS ARE SHOWING SIGNS OF SPRING FEVER PASSENGER CAR SALES ARE EDGING UPWARD AND SALES OF MINIVANS SPORTUTILITY VEHICLES AND PICKUP TRUCKS ARE BRISK CONSUMER CONFIDENCE MEASURES WHILE STILL SHORT OF BOOMTIME RESULTS ARE GENERALLY BETTER THAN A YEAR AGO THE RESULT US AUTO MAKERS PLAN TO BOOST SECONDQUARTER OUTPUT 111 COMPARED WITH A MEDIOCRE YEARAGO PERIOD THE FOUNDATION LOOKS IN PLACE FOR A SUSTAINABLE BUT MODERATE RECOVERY SAID BERNARD CAMPBELL AUTO ANALYST AT DRI/MCGRAW HILL A LEXINGTON MASS ECONOMIC CONSULTING AND FORECASTING CONCERN THE DATA RELEASES ARE MORE UNAMBIGUOUSLY POSITIVE THAN WHAT WE'VE SEEN IN A WHILE BUT AUTO ANALYSTS CAUTION THAT IF THE SEASONALLY ADJUSTED ANNUALIZED SELLING PACE OF USBUILT VEHICLES DOESN'T PICK UP IN THE NEXT COUPLE OF MONTHS SECONDQUARTER PRODUCTION PLANS COULD BE AT RISK THE SELLING RATE HAS BEEN HOVERING AROUND 125 MILLION VEHICLES WHILE AUTO ANALYSTS SAID THE SELLING RATE SHOULD BE AROUND 13 MILLION VEHICLES OVERALL INDUSTRY OBSERVERS SAID THE 10 MAJOR AUTO MAKERS BUILDING CARS IN THE US PLAN TO PUMP UP PRODUCTION IN THE APRILTHROUGHJUNE PERIOD TO 2944986 CARS AND LIGHT TRUCKS THE BIG THREE US AUTO MAKERS PLAN TO BUILD A COMBINED 2479990 CARS AND LIGHT TRUCKS UP 108 FROM THE 2239000 BUILT A YEAR AGO SIGNS OF A US REBOUND HAVE PUSHED STOCKS OF GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP UP IN HEAVY TRADING ON THE NEW YORK STOCK EXCHANGE GM AND FORD NEED GOOD NEWS ON THE HOME FRONT THE TWO LARGEST US AUTO MAKERS FACE A DEEPENING EUROPEAN RECESSION THAT IS CRUNCHING MARGINS IN OPERATIONS THERE HOWEVER NOT EVERYONE IS COUNTING ON A SPRING SURGE IN THE US HONDA MOTOR CO AND MITSUBISHI MOTORS CORP PLAN TO SCALE DOWN PRODUCTION AT US OPERATIONS REFLECTING POOR SALES AND CHANGEOVERS TO NEW MODELS THE BEST JAPANESE AUTO MAKERS STILL ENJOY AN EDGE IN QUALITY ACCORDING TO THE APRIL ISSUE OF CONSUMER REPORTS BUT ANALYSTS SAY JAPANESE AUTO MAKERS STILL FACE TOUGHER TIMES BECAUSE OF RECENT HEFTY PRICE INCREASES WE'RE SETTING UP FOR WHAT COULD BE THE BEST SPRING SELLINGSEASON IN FOUR YEARS IF THE CONSUMER DOESN'T PULL BACK SAID JOHN CASESA WERTHEIM SCHRODER & CO'S AUTO ANALYST BUT THE JAPANESE COULD BE BIG LOSERS BECAUSE THE PRICE DISPARITY CONTINUES TO WIDEN AMONG THE BIG THREE US MANUFACTURERS CHRYSLER APPEARS THE MOST BEARISH THE NO 3 US AUTO MAKER PLANS A 289 DECREASE IN PRODUCTION OF ITS CARS AND A 166 INCREASE IN TRUCK PRODUCTION HOWEVER SECONDQUARTER CAR PRODUCTION PLANS REFLECT ONLY THE OUTPUT OF VEHICLES ASSEMBLED IN THE US CHRYSLER BUILDS ITS STRONGERSELLING NEW MIDSIZE LH SEDANS IN CANADA FORD MOTOR IS POSITIONED TO INCREASE ITS SECONDQUARTER PRODUCTION FORD'S STRONG SALES HAVE LED SALOMON BROTHERS INC TO RAISE ITS 1993 PERSHARE EARNINGS ESTIMATE ON FORD TO 325 A SHARE FROM 210 A SHARE FOR ALL OF 1992 BOTH FORD AND GM POSTED HUGE LOSSES AFTER ONETIME CHARGES GM OFFICIALS ARE BEING CAUTIOUS AFTER A WEAKERTHANEXPECTED FIRST QUARTER IN THE US SLOW SALES FORCED THE NO 1 AUTO MAKER TO SLASH 61909 VEHICLES FROM ITS FIRSTQUARTER PRODUCTION PLANS AT THE END OF FEBRUARY GM'S STOCK OF UNSOLD DOMESTIC CARS AVERAGED A 76DAY SUPPLY THROUGH THE END OF FEBRUARY HIGHER THAN THE 60TO65DAY SUPPLY LEVEL CONSIDERED IDEAL A GM SPOKESWOMAN SAID INDUSTRY NEWSLETTER WARD'S AUTOMOTIVE REPORTS HAS ESTIMATED TOO HIGH WITH ITS REPORT THAT THE COMPANY PLANS A NEARLY 13 INCREASE IN US CAR PRODUCTION FOR THE APRILTOJUNE PERIOD SHE SAID GM WILL RELEASE SECONDPRODUCTION FORECASTS IN APRIL MEANWHILE JAPANESE AUTO MAKERS PLAN TO BOOST SECONDQUARTER PRODUCTION AT THEIR US FACTORIES BY A COMBINED 128 BUT THAT MAINLY REFLECTS BIG JUMPS IN PLANNED OUTPUT OF CERTAIN MODELS BUILT BY NISSAN MOTOR CO AND AUTOALLIANCE INTERNATIONAL INC A FLAT ROCK MICH ASSEMBLY PLANT JOINTLY OWNED BY FORD AND MAZDA MOTOR CORP BOTH PLANTS HAD SLOWED PRODUCTION FOR MODEL CHANGES IN THE YEARAGO PERIOD TOYOTA MOTOR CORP THE LARGEST JAPANESE AUTO MAKER PLANS A 71 INCREASE IN CAR PRODUCTION AT ITS FACILITIES BUT THE NEW UNITED MOTOR MANUFACTURING INC JOINT VENTURE THAT TOYOTA SHARES WITH GM PLANS A 46 DROP IN CAR PRODUCTION HONDA PLANS TO BUILD 114 FEWER CARS IN THE SECOND QUARTER REFLECTING SLUMPING SALES OF ITS AGING ACCORD MODEL HONDA PLANS TO INTRODUCE A NEW ACCORD THIS FALL MITSUBISHI'S DIAMONDSTAR ASSEMBLY PLANT IN NORMAL ILL PLANS TO BUILD 335 FEWER VEHICLES MITSUBISHI WHICH STOPPED BUILDING THE MIRAGE/SUMMIT LAST MAY IS STILL RAMPING UP PRODUCTION OF ITS NEW MIDSIZE GALANT SEDAN INTRODUCED LAST MONTH SEPARATELY FORD SAID SLOW SALES OF ITS FORD TEMPO AND MERCURY TOPAZ MODELS FORCED IT TO IDLE ITS KANSAS CITY CAR ASSEMBLY PLANT FOR ONE WEEK BEGINNING MONDAY FORD GM AND CHRYSLER ALL SCHEDULED DAILY AND SATURDAY OVERTIME AT SEVERAL ASSEMBLY PLANTS THIS WEEK AND NEXT WEEK ALTOGETHER THE 10 AUTO MAKERS THAT BUILD CARS IN THE US PLAN TO BUILD 234455 CARS AND TRUCKS THIS WEEK UP 172 FROM 199967 BUILT IN THE SAME WEEK A YEAR AGO 9303260036 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT HOLLYWORLD AMERICA GO HOME IN CANADA A THICKET OF RULES ISN'T POWERFUL ENOUGH TO STOP THE INVADER US POP CULTURE BY MICHAEL T MALLOY WHEN ROCK STAR BRYAN ADAMS INTRODUCED HIS HIT ALBUM WAKING UP THE NEIGHBORS A POLITICAL FLAP ERUPTED IN HIS NATIVE CANADA LOCAL FANS WERE FURIOUS BECAUSE FM RADIO STATIONS COULDN'T PLAY ANY OF THE ALBUM'S SONGS MORE THAN 18 TIMES A WEEK THE RADIO STATIONS HAD NO CHOICE THEY WERE JUST FOLLOWING GOVERNMENT REGULATIONS THROUGHOUT CANADA MUSIC CLASSIFIED AS NONCANADIAN IS RATIONED ON THE AIRWAVES AND WAKING UP WAS PUT IN THAT CATEGORY BECAUSE MR ADAMS COLLABORATED WITH A BRITISH SONGWRITER AND HE RECORDED THE MUSIC OUTSIDE THE COUNTRY SO IT GOES IN CANADA WHICH TRIES TO PROTECT ITS CULTURAL INDUSTRIES WITH AN ARCANE THICKET OF RULES AND SUBSIDIES IN THE END MANY OF THE RULES DON'T SEEM TO AFFORD MUCH PROTECTION BUT ALONG THE WAY THEY CAN BE DOWNRIGHT BIZARRE IN THE CANADIAN FOOTBALL LEAGUE FOR EXAMPLE AT LEAST 20 OF THE 37 PLAYERS ON EACH TEAM'S ROSTER MUST HAVE LEARNED THE GAME IN CANADA BY PLAYING ON A SCHOOL OR AMATEUR TEAM PROTECTIONIST PRACTICES LIKE CANADA'S HAVE BECOME MORE COMMON AROUND THE WORLD AS COUNTRIES TRY TO DEFEND THEIR OWN ENTERTAINMENT INDUSTRIES AND WHAT THEY CONSIDER THEIR CULTURAL INDEPENDENCE FROM A DELUGE OF US ENTERTAINMENT EXAMPLES FROM AROUND THE WORLD ABOUND FRENCH TELEVISON BROADCASTER TF1 WAS SLAPPED WITH A FINE OF MORE THAN 5 MILLION LAST YEAR ITS OFFENSE WAS TO PRODUCE ONLY 107 HOURS OF PRIMETIME FRENCH PROGRAMMING IN 1991 THAT WAS 13 HOURS LESS THAN A GOVERNMENT MINIMUM QUOTA INDONESIAN TELEVISION STATIONS GENERALLY SHUN FOREIGN MOVIES SINGAPORE DOESN'T ALLOW PRIVATE CITIZENS TO OWN SATELLITE DISHES IN MANILA MOVIE THEATERS ARE EXPECTED TO DEVOTE AT LEAST A FOURTH OF THEIR SCREEN TIME TO PHILIPPINE PRODUCTIONS EIGHT OF THE LAST 10 MOVIES MADE IN NEW ZEALAND WERE PRODUCED WITH GOVERNMENT FINANCIAL SUPPORT THIS YEAR AUSTRALIA RAISED TO 50 THE MINIMUM AMOUNT OF AUSTRALIAN CONTENT THAT MUST BE BROADCAST ON ITS COMMERCIAL TELEVISION STATIONS THE EUROPEAN COMMUNITY HAS DIRECTED ITS MEMBER NATIONS TO ENSURE THAT A MAJORITY OF THEIR TELEVISION ENTERTAINMENT IS MADE IN EUROPE IT CALLS THIS DIRECTIVE A CULTURAL SAFETY NET INTENDED TO SUPPORT A LEGITIMATE DESIRE TO PRESERVE NATIONAL AND REGIONAL IDENTITIES BUT US ENTERTAINMENT PROMOTERS SEE THE EC POLCY AS PROTECTIONISM PURE AND SIMPLE I DOUBT THAT THE CULTURE OF MOLIERE AND GOETHE IS REALLY THAT FRAGILE MARTIN DAVIS CHAIRMAN OF PARAMOUNT COMMUNICATIONS INC SAID IN A SPEECH LAST YEAR IN MY OPINION THE PURPOSE OF THIS TELEVISION QUOTA ISN'T TO PRESERVE EUROPEAN CULTURE BUT RATHER TO PROTECT THE LOCAL PRODUCTION INDUSTRIES GOVERNMENT PROTECTION OF CULTURAL INDUSTRIES ISN'T NEW NOR IS THE US A STRANGER TO ITS PRACTICE FOR A LONG TIME NONCITIZENS HAVE BEEN FORBIDDEN TO OWN US BROADCASTING STATIONS WHEN BOOKS WERE A DOMINANT FORM OF ENTERTAINMENT US LAWS EFFECTIVELY BANNED THE IMPORT OF ENGLISHLANGUAGE BOOKS AS A RESULT SUCH TEXTS WERE SET IN TYPE AND PRINTED BY AMERICAN PUBLISHERS A MODERNDAY VARIATION ANGERS SOME EUROPEANS FRENCH FILM DIRECTORS AND ACTORS COMPLAIN THAT US PRODUCERS HAVE BOUGHT THE AMERICAN RIGHTS TO THEIR MOVIES ONLY TO REMAKE THEM WITH US ACTORS AND THEN BLOCK DISTRIBUTION OF THE FRENCH VERSIONS IN US MARKETS IN BROADCASTING THE LATEST WAVE OF PROTECTIONISM IS MOSTLY A RESULT OF NEW TECHNOLOGY AND THE PRIVATIZATION OF FOREIGN AIRWAVES COUNTRIES DIDN'T HAVE TO WORRY ABOUT US COMPETITION WHEN THEIR CITIZENS HAD A CHOICE OF TWO OR THREE GOVERNMENTRUN CHANNELS BUT THE NUMBER OF EUROPEAN TELEVISION STATIONS HAS SOARED SINCE THE MID1980S OVER THEM LOOM SATELLITES WITH CAPACITY FOR HUNDREDS OF CHANNELS MORE GOVERNMENTS FEAR THAT A HOMOGENIZED HOLLYWOODINSPIRED CULTURE WILL DISTORT OR BLOT OUT THEIR CUSTOMS VALUES AND EVEN LANGUAGES NOWHERE IS THE TREND MORE WORRISOME THAN IN CANADA THE INVASION OF AMERICANMADE CONTENT SEEMS INCESSANT AND EVERBUILDING AND LOCAL PRODUCERS CAN'T BEGIN TO MATCH IT IN THE MOST RECENT DOCUMENTED YEAR CANADIAN MOVIES GENERATED A MINUSCULE US88 MILLION IN REVENUE FOR LOCAL DISTRIBUTORS MANY OF CANADA'S MOST TALENTED PERFORMING ARTISTS AND TV PERSONALITIES INCLUDING ANNE MURRAY DAN AYKROYD JOHN CANDY AND PETER JENNINGS HAVE BEEN DRAINED AWAY BY THE POWERFUL PULL OF HOLLYWOOD NASHVILLE AND NEW YORK THE WORLD AS WE ARE PUTTING IT TOGETHER IS PRETTY MUCH AMERICANMADE WARNS REGINALD BIBBY A CANADIAN SOCIOLOGIST HE NOTES FOR EXAMPLE THAT CANADIAN CITIES ARE GENERALLY MUCH SAFER WITH FAR LOWER RATES FOR VIOLENT CRIMES THAN THOSE IN THE US BUT THE STEADY DIET OF CRIME SHOWS AND US NEWS ABOUT CRIMES POURING ACROSS THE BORDER HAS CAUSED CANADIANS TO RESPOND MUCH AS AMERICANS DO WHEN POLLSTERS ASK IF THEIR STREETS ARE DANGEROUS IT'S PARTICULARLY IMPORTANT TO TEACH YOUNG PEOPLE TO DIFFERENTIATE BETWEEN WHAT'S HAPPENING IN THE US AND WHAT'S HAPPENING IN CANADA SAYS DR BIBBY THESE HOMICIDES ARE COMING OUT OF DETROIT NOT CALGARY ALBERTA LANGUAGE AND CULTURE OFTEN INTERTWINE BATTLES OVER LINGUISTIC POLITICS CAN BRING EMOTIONS TO A BOIL THE FRENCH SEE THEIR LANGUAGE GRADUALLY DECLINING SO THEY SUBSIDIZE THEIR OWN CINEMA SAYS DAVID WEBSTER A FORMER BBC EXECUTIVE HE RECALLS A WELSH MEMBER OF BRITAIN'S PARLIAMENT WHO ONCE WENT ON A HUNGER STRIKE TO ENSURE THAT WALES GOT A WELSHLANGUAGE BROADCASTING STATION CANADA LEARNED THIS LESSON EARLY MOST OF ITS PEOPLE LIVE WITHIN REACH OF US TELEVISION SIGNALS TO GET MORE OF THOSE SIGNALS AND GET THEM MORE CLEARLY CANADIANS EMBRACED CABLE TELEVISION SOONER AND MORE ENTHUSIASTICALLY THAN ANY OTHER COUNTRY IT'S LIKE WE ARE PLAYING IN A THEATER IN WHICH 60 OF THE AUDIENCE IS FACING THE BACK OF THE AUDITORIUM THEY'RE WATCHING BUFFALO SEATTLE AND FARGO NORTH DAKOTA SAYS ARTHUR WEINTHAL VICE PRESIDENT OF ENTERTAINMENT PROGRAMMING FOR CANADA'S CTV NETWORK THIS HAS BEEN THE WORLD'S MOST COMPETITIVE MARKET WE HAD ALL OF YOUR TELEVISION AND ALL OF OURS SAYS MOSES ZNAIMER PRESIDENT AND EXECUTIVE PRODUCER OF TORONTO'S INDEPENDENT CITYTV STATION AMERICANS SHOULD CHERISH THEIR CANADIAN EXPERIENCE BECAUSE THEY ARE GOING TO SEE IT PROLIFERATE ALL OVER THE WORLD THAT CANADIAN EXPERIENCE INCLUDES A RAFT OF MEASURES TO PROTECT LOCAL BROADCASTERS FROM AMERICAN COMPETITION YOU WOULDN'T HAVE HAD A CITYTV SAYS MR ZNAIMER IF CANADA HADN'T PASSED A LAW THAT EFFECTIVELY PREVENTS LOCAL MERCHANTS FROM BUYING ADVERTISING TIME ON NEARBY US STATIONS ANOTHER RULE FORBIDS CABLE OUTLETS FROM CARRYING A FOREIGN SPECIALTY SERVICE IF A CANADIAN VERSION IS AVAILABLE SO THE MUCHMUSIC VIDEO CHANNEL WHICH MR ZNAIMER ALSO HEADS DOESN'T HAVE TO COMPETE WITH MTV A CANADIAN SPORTS CHANNEL DOESN'T HAVE TO FIGHT OFF ESPN AND THE CANADIAN MOVIE CHANNELS HAVE THEIR LINE OF BUSINESS TO THEMSELVES STILL ANOTHER REGULATION REQUIRES A CABLE COMPANY TO SUBSTITUTE A CANADIAN CHANNEL FOR AN AMERICAN ONE IF THEY SIMULTANEOUSLY CARRY THE SAME PROGRAM SO WHEN TORONTO VIEWERS SWITCH ON ABC'S BUFFALO OUTLET TO SEE ROSEANNE THEY INSTEAD GET CTV'S BROADCAST OF THE SAME SHOW INCREASING THE AUDIENCE FOR CTV'S COMMERCIALS IT'S A BIG BENEFIT SAYS CTV'S MR WEINTHAL ALONG WITH BENEFITS COME COMPLEX OBLIGATIONS TO BROADCAST CANADIAN MATERIAL AND SOMETIMES TO PRODUCE IT ON MR ZNAIMER'S MUCHMUSIC 30 OF THE VIDEOS MUST BE CANADIAN AND 5 MUST BE SUNG IN FRENCH TO KEEP UP SUPPLY THE CHANNEL PUTS 5 OF ITS GROSS REVENUE INTO A FOUNDATION FOR MAKING CANADIAN MUSIC VIDEOS DEFINING WHAT'S CANADIAN IS A MERRY CHASE UP AND DOWN THE SYSTEM SAYS MR WEINTHAL WHOSE NETWORK MUST SHOW 60 CANADIAN CONTENT FROM 6 AM TO MIDNIGHT INCLUDING 50 DURING PRIME TIME A MOVIE OR A TV SERIES IS CANADIAN ENOUGH TO MEET THOSE QUOTAS IF IT SCORES SIX POINTS ON A 10POINT SCALE FOR SCORING A CANADIAN SCREENWRITER IS WORTH TWO POINTS AND THE HEAD OF THE ART DEPARTMENT IS WORTH ONE THE VENTURE MAY QUALIFY FOR GOVERNMENT FINANCING IF IT SCORES EIGHT POINTS OR MORE BUT A FOREIGNER MAY ALSO COUNT AS A CANADIAN PROVIDED THE MOVIE IS MADE WITH ONE OF A SCORE OF COUNTRIES WITH WHICH CANADA HAS SIGNED COPRODUCTION TREATIES AMONG THEM ARE ALGERIA ARGENTINA BELGIUM HUNGARY IRELAND ISRAEL AND MOROCCO SO THE FOX NETWORK'S CLASS OF 96 SERIES IS SHOT IN TORONTO BUT IT ISN'T CONSIDERED CANADIAN THE COUNTERSTRIKE SHOOTEMUP SERIES IS CANADIAN ENOUGH TO MEET CTV'S QUOTA EVEN THOUGH THE CAST AND STAFF ARE A MIXTURE OF FRENCH AND CANADIANS BALANCING CANADIAN AND FOREIGN CONTENT CAN BE AN ART FORM IN ITSELF PRODUCER ROBERT LANTOS SAYS THE NIGHT HEAT COP SHOW WAS SET IN A CITY THAT HAD NO NAME OR COUNTRY SO IT WOULDN'T BE IDENTIFIABLY FOREIGN TO EITHER AMERICAN OR CANADIAN AUDIENCES HE SAYS HIS CREW EVEN DESIGNED NEUTRAL LICENSE PLATES AND CURRENCY THAT LOOKED LIKE AN AMERICAN BILL ON ONE SIDE AND CANADIAN ON THE OTHER IF YOU MOVED IT AROUND YOU WEREN'T SURE CANADIAN ADVERTISERS CAN FACE TAX PENALTIES FOR USING AMERICAN MAGAZINES TO REACH THEIR CANADIAN CUSTOMERS AMERICAN MAGAZINES CAN BE STOPPED AT THE BORDER IF THEY CARRY SUCH ADS PLAYBOY MAGAZINE TO PROTECT ITSELF AGAINST ONE OF THESE LAWS ONCE HAD TO STRIP AN ADVERTISING SUPPLEMENT OUT OF EVERY COPY OF AN ISSUE BOUND FOR CANADA NO QUESTION CANADIAN PUBLISHERS HAVE A PRICE ADVANTAGE BECAUSE OF THE TAX PENALTY SAYS SANDRA BERRY MANAGING DIRECTOR OF TIME CANADA TIME IS ABLE TO PUBLISH A CANADIAN ADVERTISING EDITION BECAUSE IT PRINTS THE MAGAZINES IN CANADA BUT TIME'S CANADIAN ADVERTISERS CAN'T TREAT THOSE ADS AS A BUSINESS EXPENSE FOR INCOMETAX PURPOSES SOMETIMES GOVERNMENTS ARE TOO ENTHUSIASTIC FOR THEIR WOULDBE BENEFICIARIES ONTARIO'S TAX LAWS INCLUDE A 10 LEVY ON THEATER TICKETS IF FEWER THAN 90 OF THE CAST ARE CANADIANS EVERY YEAR OR TWO TORONTO'S THEATER COMMUNITY PERSUADES PROVINCIAL POLITICIANS TO POSTPONE THE LAW'S ENFORCEMENT AFTER ALL CUTTING BACK ON POPULAR PLAYS AND MUSICALS WOULD ONLY DRAIN AWAY PROFITS THAT OTHERWISE GO INTO PRODUCING CANADIAN PERFORMANCES CANADA'S RULES SUCCEED IN KEEPING SOME STRUGGLING INDUSTRIES ALIVE AT LEAST HALF OF THE COUNTRY'S CONSUMER MAGAZINES HAVE SPRUNG UP SINCE PROTECTIONIST EFFORTS BEGAN SUBSIDIES MEAN BOOKS ON CANADIAN TOPICS GET PUBLISHED DESPITE SHORT PRINT RUNS THAT PUSH THEIR UNIT COSTS WELL ABOVE US LEVELS AND AN OCCASIONAL TV SERIES SPEAKS TO SPECIFICALLY CANADIAN SENSIBILITIES IF A US NETWORK WERE INVOLVED IT WOULD BE A SUBSTANTIALLY DIFFERENT SERIES MR LANTOS THE PRODUCER SAYS OF NORTH OF 60 A POLITICALLY CORRECT MOUNTIES AND INDIANS SERIES HE MADE FOR THE STATEOWNED CANADIAN BROADCASTING CORP CANADA'S UNDERLYING FEAR OF BULLYING BY ITS SOUTHERN NEIGHBOR WAS REFLECTED IN A RECENT EPISODE INVOLVING THE STATUTORY RAPE OF A NATIVE GIRL BY A VISITING US AIR FORCE CREW BUT SOME CANADIANS BELIEVE THEIR GOVERNMENT'S POLICIES MERELY PROTECT MEDIOCRITY AND MAKE THE ARTS A PLAYTHING OF BUREAUCRATS PAUL DONOVAN A SUCCESSFUL CANADIAN FILM DIRECTOR GOT THESE COMPLAINTS OFF HIS CHEST BY WRITING A NOVEL RECENTLY PUBLISHED IT CHARTS THE CAREER RISE OF A FICTIONAL BUREAUCRAT IN TELEFILM CANADA THE REALLIFE GOVERNMENT AGENCY THAT FINANCES MOVIES AND TV SHOWS THE BUREAUCRAT IS SO SPINELESS AND MANIPULATIVE THAT EVEN HIS OWN FATHER CALLS HIM A WEASEL ONE OF THE BOOK'S FEW SYMPATHETIC CHARACTERS DENOUNCES THE WHOLE SYSTEM I KEEP SEEING FILM AFTER FILM GET MADE FOR ALL THE WRONG REASONS HE SAYS IT KEEPS COMING DOWN TO WHO HAS WHAT CONTACTS WHO'S THE FLAVOR OF THE MONTH WHO HAS BUILT UP THE MOST POLITICAL BROWNIE POINTS WHO PRESENTS THEMSELVES BEST AT PANELS AND FORUMS AND MOST OF ALL WHO'S THE BEST HUSTLER DESPITE ALL THE PROTECTIONIST MEASURES CANADIANS ARE STILL SWAMPED WITH US ENTERTAINMENT AND US ATTITUDES AT THE BIGGEST CHAIN OF CANADIAN MOVIE THEATERS THE TOP HIT LAST YEAR WAS BASIC INSTINCT SIMILARLY AMERICA'S FUNNIEST HOME VIDEOS DREW THE BIGGEST AUDIENCE AMONG LAST SEASON'S TV SERIES NATIONAL GEOGRAPHIC HAS A FAR LARGER CANADIAN CIRCULATION THAN CANADIAN GEOGRAPHIC MAGAZINE THERE IS A TREMENDOUS ACCELERATION OF AMERICAN CULTURE HERE SAYS DR BIBBY THE SOCIOLOGIST ABOUT A YEAR AGO HE SURVEYED ENGLISHSPEAKING CANADIAN TEENAGERS TO SEE WHO AND WHAT THEY MOST ADMIRED THE MOST POPULAR ATHLETE TV SHOW ROCK GROUP MOVIE STAR AUTHOR AND TV NEWS PERSON WERE ALL AMERICAN AND THEIR FAVORITE POLITICIAN WAS GEORGE BUSH MR MALLOY IS CHIEF OF THE WALL STREET JOURNAL'S TORONTO BUREAU 9303260035 930326 MANAGEMENT CEOS FIND THAT CLOSEST CHUMS ON BOARD ARE THE ONES MOST LIKELY TO PLOT A REVOLT BY JULIE AMPARANO LOPEZ STAFF REPORTER OF THE WALL STREET JOURNAL WITH FRIENDS LIKE THESE A CHIEF EXECUTIVE OFFICER NEEDS HELP THE FRIENDS ARE RETIRED CHIEF EXECUTIVES SITTING ON THE CEO'S BOARD THOUGH OFTEN HANDPICKED BY THE CEO THESE OUTSIDE DIRECTORS HAVE BEEN TURNING ON THEIR PAL IN A SPATE OF RECENT CORPORATE COUPS INDEED A PATTERN IS DISCERNIBLE IN THESE DEPOSINGS THE PERSON MOSTLY LIKELY TO PLOT THE CEO'S DOOM IS AN OUTSIDE DIRECTOR WHO FORMERLY RAN HIS OR HER OWN COMPANY ARMED WITH POWERFUL LEADERSHIP SKILLS AND THE CREDIBILITY OF A FORMIDABLE BUSINESS BACKGROUND THIS DIRECTOR RALLIES OTHER DIRECTORS AND LAUNCHES A BOARDROOM COUP ASK ROBERT C STEMPEL RECENTLY DETHRONED FROM GENERAL MOTORS CORP LAST OCTOBER HE WAS OVERTHROWN BY INSURGENT DIRECTOR JOHN SMALE PROCTER & GAMBLE CO'S FORMER CHAIRMAN WITH THE HELP OF OTHER BOARD MEMBERS AND THEN THERE IS JAMES D ROBINSON III TOPPLED AT AMERICAN EXPRESS CO IN LATE JANUARY HE HAD TEMPORARILY STAVED OFF AN OUSTER SPEARHEADED BY RAWLEIGH WARNER JR RETIRED CHAIRMAN OF MOBIL CORP IN EXCHANGE FOR GIVING UP HIS CHIEFEXECUTIVE POST MR ROBINSON RETAINED THE CHAIRMAN'S OFFICE LATER HOWEVER HE ALSO HAD TO SURRENDER THAT TITLE WHEN OUTSIDE DIRECTORS SHAREHOLDERS AND CUSTOMERS CONTINUED THE BATTLE IN ANOTHER REVOLT EARLIER THIS YEAR INDEPENDENT DIRECTORS LED BY RETIRED CEOS FORCED OUT PAUL E LEGO AS CEO OF WESTINGHOUSE ELECTRIC CORP THE FORMER CHAIRMAN OF AMOCO CORP RICHARD M MORROW WHO LED THE UPHEAVAL AT WESTINGHOUSE SUCCEEDED MR LEGO AS CHAIRMAN JOHN F AKERS CHAIRMAN AND CEO OF INTERNATIONAL BUSINESS MACHINES CORP SUFFERED A SIMILAR FATE IN LATE JANUARY NUDGED BY OUTSIDE DIRECTOR JAMES BURKE FORMER JOHNSON & JOHNSON CHAIRMAN MR AKERS ANNOUNCED THAT HE WOULD STEP DOWN FROM HIS POSTS AFTER IBM FINDS A SUCCESSOR A MOVE THAT IS EXPECTED SHORTLY IRONICALLY CHIEF EXECUTIVES COMMONLY SEE RETIRED CHIEF EXECUTIVES AS THEIR CLOSEST CHUMS ON A BOARD THEY WERE CRONIES WHO HAD EXPERIENCED THE CEO'S PROBLEMS FIRSTHAND AND WHO HEARTILY AGREED THAT CORPORATE CHIEFS WERE WORTH A LOT OF MONEY BUT NOW GOODOLDBOY DIRECTORS ARE OUT SAYS ANDREW J SHERWOOD CHAIRMAN OF GOODRICH & SHERWOOD CO MANAGEMENT CONSULTANTS IN NEW YORK THE COUP AT AMERICAN EXPRESS ILLUSTRATES HOW FORMER CHIEF EXECUTIVES CAN WIELD THEIR POWER BY ENLISTING ALLIES ACCORDING TO A KEY PARTICIPANT MR WARNER KNEW IT WOULDN'T BE EASY TO OVERTHROW THE AMERICAN EXPRESS CHIEF SEVERAL PRESTIGIOUS DIRECTORS SUCH AS FORMER SECRETARY OF STATE HENRY A KISSINGER AND DREW LEWIS CHAIRMAN AND CHIEF EXECUTIVE OF UNION PACIFIC CORP WERE PERSONAL FRIENDS OF MR ROBINSON WHAT'S MORE MR ROBINSON HAD HANDPICKED 15 OF THE 17 OUTSIDE DIRECTORS YET MR WARNER FEARED THAT DIRECTORS WOULD BE ACCUSED OF PROTECTING MR ROBINSON OR EVEN SUED IF THEY DIDN'T TAKE ACTION THE PARTICIPANT SAYS MR WARNER AND MR ROBINSON DIDN'T ANSWER REPEATED CALLS FOR COMMENT LAST FEBRUARY AT MR WARNER'S URGING MR ROBINSON ALLOWED OUTSIDE DIRECTORS TO MEET SEPARATELY FOR THE FIRST TIME ACCORDING TO THE PARTICIPANT THAT SET THE STAGE FOR MR WARNER'S SUBSEQUENT CAMPAIGN TO REMOVE THE AMERICAN EXPRESS CHAIRMAN IN AUGUST WHILE VACATIONING IN THE ROCKIES MR WARNER COMPILED A SUMMARY OF BLUNDERS THAT HE BELIEVED CHARACTERIZED MR ROBINSON'S 15YEAR TENURE AT THE HELM OF AMERICAN EXPRESS AND FAXED THEM TO HOWARD CLARK SR A SENIOR ADVISER ON THE BOARD AND THE FORMER CEO OF AMERICAN EXPRESS MR CLARK A FRIEND AND NEIGHBOR OF MR WARNER'S AGREED WITH MR WARNER THAT MR ROBINSON WAS INCAPABLE OF LEADING THE COMPANY OUT OF ITS TROUBLES AND NEEDED TO GO WITH THE SUPPORT OF THE INFLUENTIAL MR CLARK MR WARNER QUICKLY MOVED TO BRING FELLOW OUTSIDE DIRECTORS INTO THE FOLD IN EARLY SEPTEMBER HE INVITED MR CLARK AND FOUR OUTSIDE DIRECTORS KNOWN TO BE INDEPENDENT OF MR ROBINSON TO A SECRET MEETING IN NEW YORK THEY JOINED THE BATTLE AND AGREED THAT MR WARNER SHOULD SEEK MR ROBINSON'S OUSTER AT A SEPT 20 MEETING OF OUTSIDE DIRECTORS AT THAT MEETING HELD AT THE ST REGIS HOTEL IN NEW YORK MR WARNER MADE HIS CASE FOR MR ROBINSON'S OUSTER CITING EVIDENCE SUCH AS THE FINANCIAL WOES OF THE COMPANY'S SHEARSON LEHMAN BROTHERS INC SUBSIDIARY AND PROBLEMS WITH THE PEOPLE MR ROBINSON HAD INSTALLED IN SENIOR EXECUTIVE JOBS THE MEETING CAME AT A TIME WHEN THE COMPANY WAS ON ITS WAY TO POSTING A 205 MILLION THIRDQUARTER LOSS MR WARNER'S SPEECH CULMINATED WITH HIS RECOMMENDATION THAT MR ROBINSON STEP DOWN IMMEDIATELY THE MEETING QUICKLY TURNED HEATED SOURCES SAY MR ROBINSON'S SUPPORTERS OBJECTED IN THE END THE OUTSIDE DIRECTORS DECIDED TO RETAIN MR ROBINSON UNTIL A SUCCESSOR COULD BE FOUND FOR A WHILE MR ROBINSON APPEARED TO HAVE BEATEN THE COUP HE INSTALLED HIS PROTEGE HARVEY GOLUB AS CHIEF EXECUTIVE AND RETAINED THE CHAIRMANSHIP MR WARNER AND TWO OTHER BOARD MEMBERS RESIGNED BUT OUTRAGE FROM SHAREHOLDERS CUSTOMERS CREDITORS AND EMPLOYEES OVER KEEPING MR ROBINSON IN ANY CAPACITY FORCED HIM TO LEAVE A SHORT TIME LATER IN LATE FEBRUARY AT GM MR SMALE HAD AN EASIER TIME CONVINCING DIRECTORS TO GO ALONG WITH THE CHAIRMAN'S OUSTER IN THE THIRD QUARTER GM HAD POSTED A LOSS OF 7529 MILLION WHEN MANY DIRECTORS DECIDED THE BOARD NEEDED TO TAKE FIRMER CONTROL OF THE COMPANY MR SMALE TOLD OUTSIDE DIRECTORS THAT HE WOULD NOT PROCEED WITH A COUP ATTEMPT UNLESS HE HAD UNANIMOUS SUPPORT ACCORDING TO PEOPLE FAMILIAR WITH THE EVENTS NO ONE OBJECTED AND MR STEMPEL WAS FORCED TO RETIRE IN OCTOBER AN IMPORTANT SPUR TO SUCH COUPS IS THE SIMPLE NEED TO RESCUE A COMPANY WHAT'S MORE A RETIRED CEO'S EXPERIENCE GIVES SUCH A DIRECTOR THE CREDIBILITY TO QUESTION A CHAIRMAN'S PERFORMANCE AND MOBILIZE A BOARD SAYS MR SHERWOOD THE GOODRICH & SHERWOOD CHAIRMAN THEN THERE IS THE EMBARRASSMENT FACTOR RETIRED CEOS FEAR THAT SERVING ON A COMPANY'S BOARD WHEN THE CONCERN FOUNDERS COULD TARNISH THEIR RECORD THEY DON'T WANT TO BE SEEN AS FALLING ASLEEP AT THE SWITCH SAYS JEFFREY SONNENFELD DIRECTOR OF THE CENTER FOR LEADERSHIP AND CAREER STUDIES AT EMORY UNIVERSITY'S BUSINESS SCHOOL BESIDES DIRECTORS HAVE FIDUCIARY DUTIES AND FACE THREATS OF SUITS FROM SHAREHOLDERS OUR HEADS ARE AT STAKE EXPLAINS A DIRECTOR OF A FORTUNE 500 COMPANY AND A FORMER CEO MANY INSTITUTIONAL INVESTORS ARE DRIVING HOME THIS POINT WHENEVER I MEET WITH BOARDS I TELL THEM THEY MUST ACT INDEPENDENTLY AND BE RESPONSIBLE TO SHAREHOLDERS EXPLAINS JAMES D MOSMAN CHIEF EXECUTIVE OF THE CALIFORNIA STATE TEACHERS' RETIREMENT SYSTEM MANY DIRECTORS CLEARLY ARE PLACING THIS DUTY ABOVE FRIENDSHIP DESPITE A CLOSE FRIENDSHIP WITH MR AKERS OUTSIDE DIRECTOR JAMES BURKE GENTLY CONVINCED THE IBM CHAIRMAN THAT HE SHOULD STEP DOWN AS THE COMPANY'S WOES WIDENED ACCORDING TO PEOPLE IN THE INDUSTRY TO PROTECT THEMSELVES SOME CEOS PARTICULARLY THOSE HEADING COMPANIES WITH FINANCIAL WOES ARE BEGINNING TO INVOLVE OUTSIDE DIRECTORS MORE IN DAYTODAY BUSINESS DECISIONS EASTMAN KODAK CO CHAIRMAN KAY WHITMORE FOR INSTANCE LAST MONTH FORMED A SPECIAL COMMITTEE OF OUTSIDE DIRECTORS TO WORK WITH SENIOR MANAGEMENT ON THE SAME DAY HE ANNOUNCED THAT THE COMPANY'S CORE PHOTOGRAPHY BUSINESS WAS GROWING SLOWER THAN EXPECTED AND THAT SOME OPERATIONS WOULD BE RESTRUCTURED THE MAIN PURPOSE OF THE COMMITTEE WHICH COMPRISES FOUR RETIRED CHIEF EXECUTIVES IS TO PROVIDE BETTER AND MORE FREQUENT COMMUNICATION WITH OUTSIDE DIRECTORS EXPLAINS A KODAK SPOKESMAN OTHERS HOWEVER VIEW SUCH A MOVE AS A BLOCKADE CHIEF EXECUTIVES ARE TRYING TO PREVENT THE PRIVATE MEETING AT THE RESTAURANT BEFORE DIRECTORS AX THEM EXPLAINS MR MCGURN THEY'RE TRYING TO STOP FROM BEING STABBED IN THE BACK 9303260034 930326 WHO'S NEWS QUAKER STATE CORP QUAKER STATE CORP OIL CITY PA THREE DIRECTORS SAID THEY WILL NOT STAND FOR REELECTION AT THE MAY 13 ANNUAL MEETING THEY ARE KENTON E MCELHATTAN 70 YEARS OLD A DIRECTOR SINCE 1977 AND CHAIRMAN OF INDUSTRIAL SCIENTIFIC CORP WILLIAM J MCFATE 79 A DIRECTOR SINCE 1963 AND A PARTNER IN THE LAW FIRM OF MCFATE MCFATE & MCFATE AND QUENTIN E WOOD 70 A DIRECTOR SINCE 1968 AND RETIRED QUAKER STATE CHAIRMAN THE PRODUCER AND MARKETER OF BRANDED MOTOR OILS AND LUBRICANTS WILL REDUCE THE SIZE OF ITS BOARD TO 10 MEMBERS FROM 13 9303260033 930326 ECONOMY INITIAL JOBLESS CLAIMS FELL IN LATEST WEEK WASHINGTON AMERICANS FILED 2000 FEWER CLAIMS FOR INITIAL UNEMPLOYMENT INSURANCE IN THE WEEK ENDED MARCH 20 THE LABOR DEPARTMENT SAID THE DROP TO 349000 FOLLOWS THE 10000 DROP THE WEEK BEFORE THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH ANALYSTS FEEL IS A BETTER INDICATOR OF LABOR MARKET CONDITIONS FELL BY 500 TO 359250 IN THE WEEK ENDED MARCH 20 ANALYSTS SAID THE CLAIMS STATISTICS FOR THE FIRST THREE WEEKS OF MARCH INDICATE THE LABOR MARKET IS IMPROVING AT A MODERATE PACE 9303260032 930326 WHO'S NEWS PETER WOOD RESIGNS AT BARCLAYS IN A SIGN OF TURMOIL AT FIRM LONDON IN A FRESH SIGN OF TURMOIL AT BARCLAYS PLC BRITAIN'S BIGGEST BANK PETER WOOD ANNOUNCED HIS RESIGNATION AS GROUP FINANCE DIRECTOR IN ORDER TO TAKE UP THE SAME JOB AT SMALLER STANDARD CHARTERED BANK PLC MR WOOD 50 YEARS OLD HAD WORKED FOR BARCLAYS SINCE 1966 HIS DECISION TO LEAVE THE BANK WAS ANNOUNCED A DAY AFTER BARCLAYS SAID IT WAS LOOKING FOR A NEW CHIEF EXECUTIVE OFFICER FROM OUTSIDE THE GROUP AFTER FAILING TO FILL THE POST INTERNALLY THE NEWS OF MR WOOD'S DEPARTURE WAS GREETED WITH DISMAY BY INVESTMENT ANALYSTS IT IS A SIGNIFICANT LOSS TO THE GROUP SAID ROBERT LAW OF LEHMAN BROTHERS INTERNATIONAL BARCLAYS SHARES DIPPED FIVE PENCE AFTER THE NEWS BEFORE RECOVERING TO CLOSE ONE PENNY LOWER AT 414 PENCE 611 ON THE LONDON STOCK EXCHANGE BARCLAYS HAS BEEN HIT BY HEAVY LOSSES ON LOANS TO COMPANIES MANY OF THEM PROPERTY DEVELOPERS THAT HAVE GONE BUST IN BRITAIN'S RECESSION ANGERED AT THE BANK'S LOSSES INSTITUTIONAL INVESTORS HAVE BEEN PRESSURING ITS CHAIRMAN AND CHIEF EXECUTIVE ANDREW BUXTON FOR MONTHS TO STRENGTHEN THE BANK'S MANAGEMENT BY SPLITTING HIS JOB AS FINANCE DIRECTOR MR WOOD WASN'T DIRECTLY INVOLVED IN THE BANK'S LENDING POLICIES BUT HE WAS IN THE FRONT LINE OF FIRE WHEN IT CAME TO EXPLAINING THEIR CONSEQUENCES IN THE FORM OF A REDUCED DIVIDEND ACCORDING TO A BARCLAYS SPOKESMAN MR WOOD CHOSE TO TAKE THE JOB AT STANDARD CHARTERED BECAUSE IT WILL PROVIDE HIM WITH GREATER RESPONSIBILITIES AS PART OF A SMALLER MANAGEMENT TEAM HE SUCCEEDS RICHARD STEIN WHO IS RETIRING LATER THIS YEAR MR WOOD WILL BE SUCCEEDED AT BARCLAYS BY OLIVER STOCKEN CURRENTLY FINANCE DIRECTOR OF THE BANK'S INVESTMENT BANKING SUBSIDIARY BARCLAYS DE ZOETE WEDD 9303260031 930326 JAPAN VEHICLE EXPORTS FELL 54 IN FEBRUARY BUT DOLLAR VALUE ROSE SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S EXPORTS OF CARS TRUCKS AND BUSES DROPPED 54 IN FEBRUARY FROM A YEAR EARLIER TO 496965 UNITS THE FIFTH CONSECUTIVE MONTH OF YEARONYEAR DECLINE THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID BUT DESPITE THE DROP IN VOLUME THE DOLLAR VALUE OF VEHICLE EXPORTS ROSE 7 TO 744 BILLION CONTINUING A RECENT TREND THIS REFLECTS A MOVE AMONG JAPANESE MAKERS TO FOCUS ON HIGHERPRICED CARS AS THEY SEEK PROFITS WITHIN CEILINGS SET FOR THE NUMBER OF CAR EXPORTS TO THE US AND THE EUROPEAN COMMUNITY IN ADDITION THE YEN'S APPRECIATION IN FEBRUARY PUSHED UP PRICES OF YEN EXPORTS IN DOLLAR TERMS AN ASSOCIATION SPOKESMAN SAID IN FEBRUARY SHIPMENTS TO THE US AND ECONOMIC COMMUNITY DECLINED DUE TO WEAK DEMAND EXPORTS TO ASIA AND SOUTH AMERICA CONTINUED THEIR RECENT UPWARD MOVES AMID STEADY ECONOMIC GROWTH IN THOSE REGIONS THE SPOKESMAN SAID EXPORTS TO THE US FELL 52 FROM A YEAR EARLIER TO 158376 VEHICLES THE CEILING FOR USBOUND CAR EXPORTS 1650000 UNITS IS SET FOR THE 12 MONTHS ENDING MARCH 31 BUT THE APPROACHING DATE HAD LITTLE EFFECT ON FEBRUARY EXPORTS AS SHIPMENTS TO THE US HAVE BEEN FAR BELOW THE CEILING THE SPOKESMAN SAID TO REACH THE CEILING USBOUND EXPORTS WOULD HAVE TO SOAR 57 IN MARCH FROM A YEAR EARLIER HE SAID BY MAKER TOYOTA MOTOR CORP EXPORTED 141387 UNITS DOWN 67 NISSAN MOTOR CO EXPORTED 64442 UNITS DOWN 22 AND SHIPMENTS BY MAZDA MOTOR CORP FELL 52 TO 81382 UNITS THOSE BY MITSUBISHI MOTORS CORP INCREASED 29 TO 62913 HONDA MOTOR CO'S EXPORTS FELL 11 TO 53038 UNITS 9303260030 930326 WHO'S NEWS UST NAMES FINNEGAN PRESIDENT AND CEO SCHWARTZ GETS POST BOSTON UST CORP SAID IT NAMED NEAL FINNEGAN PRESIDENT AND CHIEF EXECUTIVE MR FINNEGAN 54 YEARS OLD IS FORMER EXECUTIVE VICE PRESIDENT OF PRIVATE BANKING FOR BANKERS TRUST CO A UNIT OF BANKERS TRUST NEW YORK CORP HE SUCCEEDS JAMES SIDELL 61 WHO WILL BECOME CHAIRMAN OF THE EXECUTIVE COMMITTEE WILLIAM SCHWARTZ CURRENT VICE CHAIRMAN OF THE BOARD WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THE COMPANY HIS FUNCTION WILL BE TO SERVE AS A LIAISON BETWEEN THE BOARD OF DIRECTORS AND MANAGEMENT UST CORP SAID PAUL M SISKIND REMAINS CHAIRMAN OF THE BOARD 9303260029 930326 MEDIA CREATIVE ARTISTS AGENCY HIRED BY CREDIT LYONNAIS AS ADVISER BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL GIANT FRENCH LENDER CREDIT LYONNAIS HAS RETAINED HOLLYWOOD POWERHOUSE CREATIVE ARTISTS AGENCY TO HELP IT MANAGE ITS TROUBLED 3 BILLION ENTERTAINMENT AND MEDIA LOAN PORTFOLIO AND SEEK FURTHER STRATEGIC INVESTMENTS IN ENTERTAINMENT AND MEDIA WORLDWIDE THE UNUSUAL CONSULTING ARRANGEMENT IS BELIEVED TO MARK THE FIRST TIME SECRETIVE STATEOWNED CREDIT LYONNAIS HAS SOUGHT OUTSIDE COUNSEL TO MANAGE ANY ASSETS IN ITS PORTFOLIO WHICH INCLUDES LOANS TO OR CONTROLLING STAKES IN SUCH FINANCIALLY CRIPPLED ENTERTAINMENT COMPANIES AS METROGOLDWYNMAYER INC CANNON PICTURES INC AND CAROLCO PICTURES INC AMONG OTHER THINGS THE TWO PARTIES SAID CAA COULD PROVIDE ADVICE REGARDING MANAGEMENT OF THE BANK'S CURRENT AND FUTURE ENTERTAINMENT PORTFOLIO CAA IS EXPECTED TO ADVISE ON ANY SALE OF ASSETS BUT IS ALSO EXPECTED TO SEEK WAYS TO COMBINE SOME OF THE EXISTING ASSETS IN THE CREDIT LYONNAIS PORTFOLIO POSSIBLY FORMING ONE OR MORE NEW ENTERTAINMENT COMPANIES THERE ARE ENORMOUS POSSIBILITIES IN THE ARRANGEMENT SAID CAA CHAIRMAN MICHAEL OVITZ THE DEAL IS ANOTHER BOLD STEP FOR MR OVITZ WHO RECENTLY HAS SOUGHT TO DIVERSIFY BEYOND HIS PRIMARY TALENT AGENCY BUSINESS MR OVITZ BROKERED THE 6 BILLION PURCHASE OF MCA INC BY JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO AND ADVISED SONY CORP ON ITS 35 BILLION PURCHASE OF COLUMBIA PICTURES ENTERTAINMENT ON ANOTHER FRONT CAA SHOOK UP MADISON AVENUE WHEN IT WAS RETAINED BY COCACOLA CO TO CREATE A NEW ADVERTISING CAMPAIGN AND TEAMED UP WITH ATHLETIC FOOTWEAR GIANT NIKE INC TO PROMOTE AND MARKET SPORTING EVENTS WORLDWIDE THE ARRANGEMENT WITH CREDIT LYONNAIS HOWEVER MARKS THE FIRST TIME CAA HAS ENTERED INTO ANY BROAD FINANCIAL CONSULTING ROLE THE AGENCY WILL HAVE ITS WORK CUT OUT FOR IT ONE OF THE LARGEST LENDERS TO THE ENTERTAINMENT INDUSTRY MANY OF CREDIT LYONNAIS'S LOANS WERE MADE IN THE GOGO ATMOSPHERE OF THE 1980S TO ALREADY SHAKY ENTERTAINMENT COMPANIES THAT LATER FAILED CREDIT LYONNAIS HAS FORECLOSED ON SOME OF THE LOANS AND IT IS MIRED IN SOME NASTY LEGAL BATTLES OVER THE REMAINING ASSETS CAA HAS NO STRONG INTERNAL EXPERTISE ON RESTRUCTURING MATTERS AND IT ISN'T CLEAR WHETHER IT WOULD BRING IN SOMEONE WHO DOES BUT MR OVITZ IS REGARDED AS ONE OF THE SHREWDEST DEALMAKERS AND STRATEGISTS IN HOLLYWOOD HIS RELATIONSHIPS WITH TALENT ALSO MIGHT COME IN HANDY IN PERSUADING BIGNAME PRODUCERS DIRECTORS AND WRITERS TO WORK WITH COMPANIES SUCH AS MGM THAT THEY MIGHT HAVE PREVIOUSLY SHUNNED MR OVITZ'S EXPERTISE COULD ALSO PREVENT CREDIT LYONNAIS FROM MAKING THE SAME MISTAKES AGAIN CREDIT LYONNAIS APPARENTLY APPROACHED MR OVITZ AND BEGAN INTENSE NEGOTIATIONS WITH HIM LAST MONTH EARLIER THIS MONTH CREDIT LYONNAIS CHAIRMAN JEANYVES HABERER WAS QUOTED IN FRENCH DAILY LE FIGARO SAYING 1992 WILL PROBABLY BE THE WORST IN 20 YEARS NOTING THE BANK WILL TACK ON MORE PROVISIONS IN THE SECOND HALF THAN WE DID IN THE FIRST HALF IN FIRSTHALF 1992 CREDIT LYONNAIS PILED ON 625 BILLION FRANCS 112 BILLION OF PROVISIONS FOR RISKY LOANS WHILE NET GROUP PROFIT PLUNGED 92 TO 119 MILLION FRANCS ALTHOUGH NOT A BIG PART OF CREDIT LYONNAIS'S MASSIVE PORTFOLIO ESTIMATED AT ABOUT 300 BILLION THE ENTERTAINMENT LOANS ARE AMONG THE WORST PERFORMING IN DOWNGRADING THE LONGTERM RATINGS OF ABOUT 65 BILLION OF DEBT OF CREDIT LYONNAIS AND ITS SUBSIDIARIES IN DECEMBER MOODY'S INVESTORS SERVICE SAID THE ACTION MIRRORS MOODY'S BELIEF THAT CREDIT LYONNAIS'S OVERALL ASSET AND BUSINESS PROFILE IS BEING INCREASINGLY AFFECTED BY THE IMPLEMENTATION OF AN AGGRESSIVE STRATEGY OF DIVERSIFICATION AND EXPANSION AND ALSO BY DETERIORATING ASSET QUALITY IN PARTICULAR MOODY'S SAID SOME SIGNIFICANT POCKETS OF CONCENTRATION NOTABLY COMMERCIAL REAL ESTATE AND THE MOVIE INDUSTRY HAVE LED TO INCREASED ASSET QUALITY PROBLEMS FOR THE GROUP IN RECENT YEARS INCLUDING THE LOANLOSS PROVISIONS TAKEN FOR THE FIRST HALF OF 1992 MOODY'S ADDED THAT DESPITE THE PROBLEMS CREDIT LYONNAIS IS EXPECTED TO REMAIN A STRUCTURALLY STRONG FINANCIAL INSTITUTION CREDIT LYONNAIS GAINED CONTROL OF MGM AFTER IT FORECLOSED ON LOANS MADE TO ITALIAN FINANCIER GIANCARLO PARRETTI FOR THE PURCHASE OF THE STUDIO FROM INVESTOR KIRK KERKORIAN IN 1990 THE BANK IN DECEMBER FILED SUIT IN LOS ANGELES CHARGING THAT MR KERKORIAN AND SEVERAL FORMER ASSOCIATES SOUGHT TO DECEIVE THE BANK BY PRETENDING MGM WOULD HAVE SUFFICIENT CASH FLOW TO FINANCE ITS OPERATIONS EVEN THOUGH THIS WASN'T THE CASE MR KERKORIAN COUNTERSUED CLAIMING THE BANK MISLED HIM ABOUT THE STATE OF MR PARRETTI'S FINANCES CREDIT LYONNAIS IS ALSO THE SOLE BANK CREDITOR OF TROUBLED CAROLCO WHICH PRODUCED SUCH MOVIES AS TOTAL RECALL AND BASIC INSTINCT THE BANK RECENTLY ENDORSED A PLAN WHEREBY CAROLCO WOULD RECEIVE A 120 MILLION CASH INFUSION FROM A GROUP INCLUDING MGM WHICH WOULD GAIN DISTRIBUTION RIGHTS TO CAROLCO FILMS STARTING NEXT YEAR 9303260028 930326 INTERNATIONAL CONFRONTATION IN RUSSIA IS MIRRORED DAILY BY RIVALS PRAVDA AND IZVESTIA BY LAURIE HAYS AND ADI IGNATIUS STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW IGOR GOLEMBIOVSKY EDITORINCHIEF OF THE DAILY IZVESTIA SITS IN HIS TENNISCOURTSIZED OFFICE AND REFLECTS ON THE FATE OF HIS COUNTRY'S PRESIDENT AND HIS NEWSPAPER IF BORIS YELTSIN GOES SO WILL MR GOLEMBIOVSKY TWO MILES AND AN IDEOLOGICAL WORLD AWAY GENNADY SELEZNEV EDITORINCHIEF OF THE NEOCOMMUNIST DAILY PRAVDA SITS IN AN EQUALLY VAST OFFICE AND HOPES FOR MR YELTSIN'S DEPARTURE YELTSIN JUST WANTS MORE AND MORE POWER IF HE SUCCEEDS IN HIS QUEST TO BECOME A DICTATOR WE WILL PUBLISH A BLACK BOX ON PAGE ONE WITH THE WORD DEMOCRACY' INSIDE IT SAYS THE EDITOR OF THE PAPER LENIN FOUNDED AFTER THAT I'M CERTAIN HE'LL TRY TO SHUT US DOWN WHETHER MR YELTSIN GOES OR STAYS OR BECOMES A DICTATOR MAY BE DECIDED THIS WEEKEND THE CONGRESS OF PEOPLE'S DEPUTIES RUSSIA'S HIGHEST LEGISLATIVE BODY IS GATHERING IN MOSCOW TODAY TO CONSIDER OUSTING MR YELTSIN WHILE MANY PUNDITS BELIEVE THE 1033MEMBER CONGRESS WILL FALL SHORT OF THE NECESSARY TWOTHIRDS VOTE TO REMOVE MR YELTSIN THE LEGISLATURE OF LATE HAS BEEN TOUGH TO PREDICT BOTH MR YELTSIN AND HIS CHIEF RIVAL PARLIAMENTARY CHAIRMAN RUSLAN KHASBULATOV MADE LASTMINUTE TELEVISION APPEALS TO THE PUBLIC LAST NIGHT MR YELTSIN WARNED THAT IF HIS PRESIDENCY IS THREATENED HE WILL ISSUE NEW DECREES TO STRENGTHEN THE EXECUTIVE BODIES OF POWER MR KHASBULATOV WHO HINTED EARLIER IN THE DAY THAT HE MIGHT NOT PUSH CONGRESS TOWARD AN IMPEACHMENT VOTE NONETHELESS CONTINUED TO CALL FOR A FURTHER STRENGTHENING OF THE LEGISLATURE'S POWER AT THE EXPENSE OF THE PRESIDENT'S WHATEVER THE OUTCOME THE TWO EDITORS EXPECT THAT THE WAR OF WORDS SOON WILL TRANSLATE INTO TANGIBLE CHANGES IN THE POLITICAL SYSTEM AND THAT THEY THEMSELVES WILL FEEL REVERBERATIONS IN AN EXTENSION OF THE POWER STRUGGLE AT THE TOP EACH EDITOR IS BATTLING TO HELP HIS SIDE PREVAIL A PRAVDA HEADLINE THIS WEEK SCREAMED AT MR YELTSIN RESIGNATION NOT REFERENDUM AT IZVESTIA MEANWHILE HEADLINE WRITERS TOOK A DIFFERENT TACK I BELIEVE BORIS NIKOLAYEVICH BOTH EDITORS FEAR THAT THE POLITICAL TURMOIL COULD WORSEN EACH HAS HAD A TEST RUN AT POLITICAL HARASSMENT AND NEITHER ENJOYED THE EXPERIENCE IN AUGUST 1991 MR YELTSIN SUSPENDED PRAVDA THEN THE OFFICIAL MOUTHPIECE OF THE COMMUNIST PARTY IT WAS SHORTLY AFTER THE PRESIDENT HAD HELPED DEFEAT A COUP ATTEMPT IN MOSCOW AND WAS BUILDING UP HIS POWER IZVESTIA AND OTHER ANTICOMMUNIST PAPERS RUSHED TO PRAVDA'S DEFENSE CITING THE NEED TO PROTECT PRESS FREEDOM EVENTUALLY PRAVDA WAS REREGISTERED LAST SUMMER IT WAS IZVESTIA'S TURN TO SQUIRM WHEN PARLIAMENT PASSED A RESOLUTION TO TAKE BACK AUTHORITY OVER THE PAPER WHICH HAD FORMERLY BEEN UNDER THE USSR'S SUPREME SOVIET MR GOLEMBIOVSKY FEARED PARLIAMENT WOULD FREEZE THE NEWSPAPER'S BANK ACCOUNTS AND FORCIBLY SEIZE ITS BUILDING INDEED MR KHASBULATOV SENT MEMBERS OF HIS PERSONAL SECURITY FORCE ONE NIGHT TO SURROUND IZVESTIA AND BLOCK THE DOORS BUT THE STRUGGLE WAS SHORTLIVED MR YELTSIN SENT IN THE STATE MILITIA AND MR KHASBULATOV'S MEN QUICKLY CAPITULATED BUT MR GOLEMBIOVSKY SAYS HIS NEWSPAPER'S SUPPORT FOR THE PRESIDENT ISN'T IN RETURN FOR THAT RESCUE THE POLITICAL STRUGGLE HE BELIEVES BOILS DOWN TO A DISPUTE OVER HOW FAR AND HOW FAST TO MOVE THE COUNTRY FROM ITS COMMUNIST PAST TO A DEMOCRATIC FREEMARKET FUTURE RIGHT NOW HE BELIEVES MR YELTSIN IS THE ONLY ONE FIGHTING FOR REAL CHANGE WE'RE FIGHTING FOR BASIC PRINCIPLES HE SAYS LIKE MANY ANTIYELTSIN RUSSIANS MR SELEZNEV THE 45YEAROLD PRAVDA EDITOR WANTS FREEMARKET REFORMS TO BE INTRODUCED CAUTIOUSLY SO AS TO AVOID SOCIAL DISLOCATION AND HE'S CRITICAL OF THE GOVERNMENT'S EFFORT TO PRIVATIZE STATE INDUSTRY WE HAVE DEVELOPED A MARKET BUT IT IS A WILD MARKET HE SAYS THE PRAVDA EDITOR BLAMES MR YELTSIN FOR THE CHAOS YELTSIN IS THE MOST UNPREDICTABLE STATESMAN IN THE COUNTRY SAYS MR SELEZNEV HE'S NOT A CREATIVELY MINDED PERSON HE'S A GOOD DESTROYER BUT NOT A CREATOR HE THRIVES ON CONSTANT CONFLICT MR GOLEMBIOVSKY IN TURN CRITICIZES THOSE WHO IDEALIZE THE SOVIET UNION'S MORE STABLE PAST COMMENTS ABOUT HOW IMPOVERISHED RUSSIA HAS BECOME BECAUSE OF THE YELTSIN ECONOMIC REFORMS ARE EXAGGERATED DOOMSDAY FEELINGS BEING WHIPPED UP ARTIFICIALLY HE SAYS A NATIONWIDE POLL CONDUCTED BY IZVESTIA CORRESPONDENTS AND A RUSSIAN THINK TANK FOUND THAT PEOPLE GENERALLY AREN'T LIVING WORSE NOW THAN THEY DID BEFORE MR SELEZNEV THE PRAVDA EDITOR SEES SIGNS THAT MR YELTSIN IS READY TO CHIP AWAY AT RUSSIA'S NEWLY WON PRESS FREEDOM SEATED BENEATH A LARGE PHOTO OF LENIN READING PRAVDA THE EDITOR SAYS HE'S WORRIED ABOUT A NEW PRESIDENTIAL DECREE ON THE PROTECTION OF RUSSIA'S MASS MEDIA MANY OF THE PRESIDENT'S FOES VIEW THE DECREE AS THE FIRST STEP IN AN EFFORT TO CONTROL THE MEDIA AND HARASS JOURNALISTS AND NEWSPAPERS THAT OPPOSE MR YELTSIN THE GOVERNMENT MAINTAINS HOWEVER THAT THE DECREE IS INTENDED TO PROTECT MEDIA FROM INTERFERENCE BY PARLIAMENT AND THAT PRESS FREEDOM WILL BE GUARANTEED IT'S A VERY STRANGE DECREE SAYS MR SELEZNEV HE NOTES THAT IMMEDIATELY AFTER THE DECREE WAS PASSED THE GOVERNMENT LAUNCHED SUITS AGAINST TWO NEOCOMMUNIST OPPOSITION PAPERS SOVIETSKAYA ROSIYA AND DEN YELTSIN SHOULD RESIGN THE PRAVDA EDITOR CONCLUDES HE IS NO LONGER OF ANY USE IN BUILDING RUSSIA HE CAN ONLY MAKE THINGS WORSE 9303260027 930326 STEWART ENTERPRISES ACQUISITIONS METAIRIE LA STEWART ENTERPRISES INC SAID IT AGREED TO ACQUIRE TWO FUNERAL HOMES AND A CEMETERY IN SOUTH CAROLINA AND A CEMETERY IN PUERTO RICO FOR ABOUT 10 MILLION THE FUNERAL HOME AND CEMETERY OWNER SAID IT HAS A WRITTEN AGREEMENT WITH MACKEY MORTUARY INC TO PURCHASE TWO FUNERAL HOMES AND A CEMETERY IN GREENVILLE SC AND AN AGREEMENT IN PRINCIPLE WITH A BANK IT WOULDN'T IDENTIFY TO BUY A CEMETERY IN SAN JUAN PUERTO RICO TOGETHER THE FACILITIES ANNUALLY PERFORM 750 SERVICES AND 800 INTERMENTS THE COMPANY SAID 9303260026 930326 PARENT OF DENNY'S RESTAURANTS SIGNS BIASCASE DECREE BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL TW HOLDINGS INC SAID IT SIGNED A CONSENT DECREE WITH THE JUSTICE DEPARTMENT YESTERDAY COVERING RACIAL POLICIES AND PRACTICES AT ITS DENNY'S RESTAURANTS THE DECREE AND AN ACCOMPANYING LAWSUIT LISTING ALLEGATIONS OF WRONGDOING AGAINST DENNY'S WILL BE FILED IN FEDERAL COURT IN SAN FRANCISCO TODAY A SPOKESWOMAN FOR DENNY'S BASED IN SPARTANBURG SC SAID THAT PURSUANT TO AN AGREEMENT WITH THE JUSTICE DEPARTMENT TERMS OF THE DECREE WOULDN'T BE DISCLOSED UNTIL THE DOCUMENT IS SIGNED BY A FEDERAL JUDGE SHE ADDED THAT MIGHT OCCUR AS EARLY AS NEXT WEEK AS REPORTED THE JUSTICE DEPARTMENT SAID THIS WEEK THAT IT HAD SUBSTANTIATED ALLEGATIONS OF BIAS AGAINST BLACK CUSTOMERS OF THE RESTAURANT CHAIN THE DECREE COVERS EMPLOYEE NOTIFICATION AND TRAINING SELFTESTING ADVERTISING RECORDKEEPING AND REPORTING REQUIREMENTS AT DENNY'S A UNIT OF THE TW SERVICES INC DIVISION OF TW HOLDINGS NEWS OF THE FEDERAL INVESTIGATION OF DENNY'S CAME AS A GROUP OF BLACK PATRONS FILED A CIVIL SUIT IN FEDERAL COURT IN CALIFORNIA SEEKING AN END TO DISCRIMINATORY PRACTICES AND AN UNSPECIFIED AMOUNT OF MONETARY DAMAGES TW SERVICES SAID IT HAS BEEN IN NEGOTIATIONS FOR SEVERAL MONTHS WITH THE JUSTICE DEPARTMENT TO SETTLE THE FEDERAL GOVERNMENT ACTION WHICH SOUGHT ONLY INJUNCTIVE RELIEF DENNY'S SAID IN A STATEMENT WE BELIEVE IT IS IN THE BEST INTEREST OF OUR CUSTOMERS EMPLOYEES AND BUSINESS TO RESOLVE PAST CONCERNS AND NOW FOCUS OUR ENERGY AND RESOURCES ON THE PRESENT AND FUTURE THE COMPANY SAID IT CONTINUES TO DENY EVER TOLERATING RACIAL DISCRIMINATION IN THE CIVIL SUIT FILED IN FEDERAL COURT IN SAN JOSE CALIF A GROUP OF 32 BLACK CUSTOMERS OF DENNY'S ALLEGED THAT BLACKS IN CALIFORNIA DENNY'S RESTAURANTS ARE REQUIRED TO PREPAY FOR MEALS AND PAY COVER CHARGES WHILE WHITES ARE NOT THE SUIT ALSO SAYS DENNY'S CHARGES BLACKS FOR BIRTHDAY MEALS GIVEN FREE TO OTHERS AND REFUSES SERVICE TO OR EVEN FORCIBLY REMOVES SOME BLACK PATRONS FROM DENNY'S RESTAURANTS THE COMPLAINT CITES INCIDENTS IN SAN JOSE SAN DIEGO AND VALLEJO CALIF THERE ARE ABOUT 330 DENNY'S RESTAURANTS IN CALIFORNIA AND MORE THAN 1400 NATIONWIDE 9303260024 930326 S&P RATING UNIT EXPRESSES CONCERN ABOUT DERIVATIVES' BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL STANDARD & POOR'S RATING GROUP ANNOUNCED YESTERDAY THAT IT PLANS TO REVIEW ITS RATING POLICIES BECAUSE OF THE EXPLOSIVE GROWTH OF DERIVATIVE SECURITIES THE UNIT OF STANDARD & POOR'S CORP SAID THAT IT IS BECOMING INCREASINGLY CONCERNED THAT THE DISTRIBUTION OF THESE INSTRUMENTS IS BECOMING MUCH MORE WIDESPREAD AS THE SEARCH FOR HIGHER YIELDS INTENSIFIES AS A RESULT THE EXISTENCE OF A HIGHQUALITY CREDIT RATING MAY CREATE A FALSE SENSE OF SECURITY WITH LESSSOPHISTICATED INVESTORS STANDARD & POOR'S IS A UNIT OF MCGRAWHILL INC ACCORDING TO AMELIE WOGAN A MANAGING DIRECTOR AT S&P THE RATINGS SERVICE IS CONCERNED ABOUT HOW ITS CREDIT RATINGS ARE BEING USED IN RELATION TO THE GROWING DERIVATIVE MARKET WE'RE REALLY LOOKING AT THIS WHOLE NEW GROWING MARKET WHICH HAS BEEN ASSOCIATED WITH SOME SORTS OF MARKET RISKS AND INTERESTRATE RISKS RATHER THAN JUST CREDIT RISKS SHE SAID MS WOGAN SAID THAT THE DECISION WASN'T LINKED TO ANY SPECIFIC COMPLAINTS OR KNOWN ABUSES IN THE USE OF S&P CREDIT RATINGS TO SELL DERIVATIVE SECURITIES TO DATE S&P HAS RATED THE CREDIT RISK ASSOCIATED WITH THESE SECURITIES WITHOUT COMMENTING ON OTHER RISKS EVEN WHEN SUCH RISKS MAY OUTWEIGH THE CREDIT RISK THE COMPANY SAID IN ITS ANNOUNCEMENT THE COMPANY WANTS TO MAKE SURE THAT OUR RATINGS ARE BEING COMMUNICATED IN THE BEST POSSIBLE MANNER SAID MS WOGAN WE'RE STUDYING HOW MARKET RISKS AND INTEREST RATE RISKS CAN BE HIGHLIGHTED IT COULD BE ACCOMPLISHED THROUGH ACCOMPANYING TEXT OR THROUGH A RATING SYSTEM S&P PLANS TO FOCUS ON INSTRUMENTS WHERE PRINCIPAL REPAYMENT IS LINKED TO THE PERFORMANCE OF AN EQUITY INDEX SUCH AS THE S&P 500 OR WHERE INTEREST OR PRINCIPAL PAYMENTS ARE SEGREGATED ON MORTGAGE SECURITIES THE COMPANY SAID SUCH INSTRUMENTS WOULD INCLUDE MORTGAGEBACKED SECURITIES SUCH AS INTERESTONLY STRIPS AND INVERSE FLOATERS SAID MS WOGAN THE COMPANY PLANS TO DISCLOSE ITS FINDINGS IN ABOUT TWO MONTHS SHE ADDED 9303260023 930326 TWO COMPANIES SETTLE CHARGES OF TRYING TO FIX PRICES AFTER UNUSUAL FTC ACTION BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL TRADE COMMISSION SAID YKK INC THE NATION'S LARGEST ZIPPER MAKER HAS AGREED TO SETTLE CHARGES THAT IT ATTEMPTED TO FIX PRICES WITH ITS CHIEF COMPETITOR TALON INC THE SETTLEMENT WAS THE SECOND IN TWO DAYS CONCERNING AN ATTEMPT TO ILLEGALLY SET PRICES RATHER THAN THE EXECUTION OF PRICE FIXING ON WEDNESDAY THE COMMISSION SETTLED CHARGES THAT AE CLEVITE INC OF ANN ARBOR MICH INVITED A FOREIGN COMPETITOR TO FIX PRICES ON LOCOMOTIVE ENGINE BEARINGS UNTIL LAST SUMMER THE FTC HADN'T USED ITS POWER TO PURSUE AN INVITATION TO COLLUDE CASE THESE TWO CASES ARE ONLY THE SECOND AND THIRD TIMES THE COMMISSION HAS USED ITS AUTHORITY IN THIS MANNER DURING ITS 79YEAR HISTORY IN THE ZIPPER CASE THE FTC SAID THAT IN A 1988 LETTER AND FOLLOWUP MEETING YKK'S LAWYER ASKED TALON TO STOP OFFERING FREE EQUIPMENT TO CUSTOMERS WHO BUY ZIPPER COMPONENTS AT THE SAME TIME YKK SAID IT WOULD STOP PROVIDING FREE INSTALLATION EQUIPMENT TO ITS CUSTOMERS IF TALON DID THE SAME ACCORDING TO THE FTC COMPLAINT WITHOUT ADMITTING OR DENYING WRONGDOING YKK AGREED NOT TO ENGAGE IN SUCH PRACTICES IN THE FUTURE NO YKK OFFICIAL WAS AVAILABLE FOR COMMENT A TALON OFFICIAL SAID HE DIDN'T HAVE ENOUGH INFORMATION TO COMMENT IN THE FTC COMPLAINT INVOLVING THE LOCOMOTIVE EQUIPMENT COMPANIES THE AGENCY SAID THE GENERAL MANAGER OF JP INDUSTRIES INC WHICH NOW IS PART OF AE CLEVITE TOLD THE MANAGING DIRECTOR OF MIBA GLEITLAGER AG AN AUSTRIAN COMPANY THAT MIBA'S LOW PRICES WERE RUINING THE MARKETPLACE THE MIBA OFFICIAL SAID MIBA DIDN'T WANT TO UNDERCUT PRICES AND JP INDUSTRIES THEN SENT A FACSIMILE OF ITS PRICE LIST TO MIBA THIS CONDUCT ACCORDING TO THE FTC CONSTITUTED AN IMPLICIT INVITATION FOR MIBA TO REFRAIN FROM COMPETITION IN THE PRICING OF LOCOMOTIVE ENGINE BEARINGS NO AE CLEVITE OFFICIAL WAS AVAILABLE FOR COMMENT AE CLEVITE IS A SUBSIDIARY OF T&N PLC MANCHESTER ENGLAND WHILE THE SETTLEMENT DOESN'T CONSTITUTE AN ADMISSION OF GUILT AND CARRIES NO PENALTY AE CLEVITE AND ITS PARENT AGREED NOT TO FIX OR ATTEMPT TO FIX PRICES IN THE FUTURE THOUGH FTC OFFICIALS WOULDN'T SAY THE TWO CASES REPRESENT A TREND OR AN ENFORCEMENT TOOL THAT NECESSARILY WILL GET GREAT USE IN THE NEAR FUTURE THE CASES DO SHOW THE AGENCY'S WILLINGNESS TO EXPAND ITS REACH BEYOND TRADITIONAL ENFORCEMENT BOUNDARIES WHAT THE COMMISSION IS TRYING TO DO IS FIND AREAS WHERE ITS STATUTE LETS IT GO AFTER ANTICOMPETITIVE CONDUCT THAT MIGHT NOT BE REACHED BY OTHER MEANS BUT CONDUCT THAT ECONOMIC AND LEGAL ANALYSIS INDICATES IS HARMFUL TO CONSUMERS SAID MARK WHITNER ASSISTANT TO THE DIRECTOR OF THE FTC'S COMPETITION BUREAU YOU WILL SEE IT IF AND WHEN THE FACTS COME IN TO MAKE OUT A CASE HE ADDED BUT THE HOPE WOULD BE THIS WILL BE A DETERRENT FACTOR AND YOU WON'T SEE THESE CASES VERY OFTEN 9303260022 930326 MARKETING & MEDIA TIME WARNER TO BRING OUT CANADIAN SPORTS ILLUSTRATED OTTAWA SPORTS ILLUSTRATED IS BRINGING OUT NEXT WEEK A CANADIAN EDITION TO COMPETE FOR CANADIAN ADVERTISING DOLLARS THE WEEKLY TIME WARNER INC PUBLICATION IS SKIRTING CANADIAN REGULATIONS THAT PREVENT US AND OTHER FOREIGN MAGAZINES FROM OFFERING DISCOUNTED RATES TO CANADIAN ADVERTISERS THROUGH REGIONAL ISSUES AIMED AT A CANADIAN AUDIENCE CANADIAN MAGAZINE PUBLISHERS SAY THAT IF SPORTS ILLUSTRATED IS SUCCESSFUL IT WILL OPEN THE DOOR TO A FLOOD OF OTHER US MAGAZINES TRYING TO MOVE INTO CANADA'S ADVERTISING MARKET IF THAT HAPPENS IT WILL MEAN THE END OF THE CANADIAN MAGAZINE INDUSTRY SAID CATHERINE KEACHIE EXECUTIVE DIRECTOR OF THE CANADIAN MAGAZINE PUBLISHERS ASSOCIATION AT ISSUE ARE CANADIAN TARIFF RULES THAT PROHIBIT FOREIGN MAGAZINES FROM SHIPPING TO CANADA REGIONAL ISSUES THAT CONTAIN THE SAME EDITORIAL CONTENT BUT SUBSTITUTE CANADIAN ADS FOR SOME FOREIGN ONES SPORTS ILLUSTRATED CLAIMS IT ISN'T BREAKING THE RULE BECAUSE ITS CANADIAN EDITION WILL BE PRINTED IN TORONTO SPORTS ILLUSTRATED GENERAL MANAGER ALVARO SARALEGUI SAID THE CANADIAN EDITION WILL CONTAIN SPECIAL CANADIAN ARTICLES THE FIRST ISSUE WILL BE ON NEWSSTANDS MARCH 30 LIKE ITS US COUNTERPART IT WILL BE A BASEBALL PREVIEW EDITION BUT IT WILL HAVE A DIFFERENT COVER AND EXPANDED COVERAGE OF THE MONTREAL EXPOS AND THE TORONTO BLUE JAYS ONLY SIX CANADIAN ISSUES ARE PLANNED THIS YEAR BUT EVENTUALLY THE NUMBER WILL INCREASE IN WEEKS WHEN THE CANADIAN ISSUE ISN'T AVAILABLE CANADIANS WILL BE OFFERED THE US ISSUE A GOVERNMENT OFFICIAL SAID IT IS MONITORING THE SITUATION BUT WON'T DECIDE WHAT ACTION IF ANY TO TAKE UNTIL IT SEES THE FIRST ISSUE OF SPORTS ILLUSTRATED CANADA 9303260021 930326 YOUR MONEY MATTERS WEEKEND REPORT THE TALK YOU MUST HAVE WITH YOUR PARENTS BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL YOUR PARENTS ARE GETTING ON IN YEARS TO SOME PEOPLE THAT MEANS THEY MAY SOON COME INTO THEIR INHERITANCE BUT MOST PEOPLE ARE MORE CONCERNED THAT WHAT THEY WILL GET ARE THEIR PARENTS' PROBLEMS AND BILLS OR EVEN THE PARENTS THEMSELVES ADVISERS SAY IT IS NEVER TOO SOON FOR ADULT CHILDREN TO START TALKING WITH THEIR PARENTS ABOUT THE WHAT IFS PLANNING FOR WHAT COULD HAPPEN BUT WITH THE CHILDREN TRYING TO AVOID LOOKING GREEDY AND PARENTS NOT WANTING TO GIVE UP CONTROL BROACHING THE SUBJECT CAN BE AN EMOTIONAL MINEFIELD IT IS A LOADED PSYCHOLOGICAL ISSUE SAYS SHARON RICH A BELMONT MASS FINANCIAL PLANNER YOU ARE DEALING WITH TWO OF OUR CULTURE'S THREE BIG TABOOS DEATH AND MONEY NONETHELESS CHILDREN WHO DON'T TAKE THAT STEP MAY GET A RUDE AWAKENING THEY MAY FIND THEMSELVES SCAVENGING FOR WILLS INSURANCE POLICIES AND BANK STATEMENTS AFTER THEIR PARENTS DIE OR WORSE THEY MAY FIND THAT THEY LACK THE BASIC TOOLS TO PROTECT THEIR PARENTS' INTERESTS IF THEY BECOME SERIOUSLY ILL OR INCOMPETENT A GOOD FIRST STEP IS TO PUT YOURSELF IN YOUR PARENTS' SHOES SAYS KAREN SPERO A CLEVELANDBASED FINANCIAL PLANNER THAT MEANS RECOGNIZING THAT WHAT IS BEST FOR THE PARENT ISN'T ALWAYS BEST FOR THE CHILD YOU MUST TRY TO UNDERSTAND WHAT THE PARENT FEARS AND WHAT IT REALLY COSTS THE PARENT TO LIVE SHE SAYS ONE REAL FEAR IS OFTEN THAT THE CHILDREN WANT THE MONEY FOR THEMSELVES EVERYONE IS AFRAID OF OUTLIVING THEIR MONEY SAYS MS SPERO IN THEIR CONCERN ABOUT NOT HAVING ENOUGH THEY BECOME SOMEWHAT SUSPICIOUS ABOUT OTHER PEOPLE TAKE THAT INTO CONSIDERATION AND IT MAY BE EASIER TO MOVE ON TO THE FOUR THINGS FINANCIAL AND LEGAL ADVISERS GENERALLY AGREE CHILDREN AND THEIR AGING PARENTS SHOULD ADDRESS A WILL A DURABLE POWER OF ATTORNEY A HEALTHCARE PROXY AND A LIST OF ASSETS ALEXANDER BOVE JR A BOSTON ESTATE ATTORNEY SAYS PREPARING A DURABLE POWER OF ATTORNEY IS THE MOST IMPORTANT STEP THE DOCUMENT WHICH SHOULD BE DRAFTED WITH THE HELP OF A GOOD LAWYER WOULD ALLOW A CHILD TO DO SUCH THINGS AS SIGN TAX RETURNS TRANSFER ASSETS INTO A TRUST AND MAKE FINANCIAL DECISIONS FOR A PARENT IF HE OR SHE SHOULD BECOME INCOMPETENT IF WORDED PROPERLY IT COULD EVEN ALLOW A CHILD TO ESTABLISH TRUSTS AND MAKE GIFTS FOR A PARENT MR BOVE SAYS I WOULD ACTUALLY DO THE POWER OF ATTORNEY BEFORE THE WILL HE SAYS NOTING THAT A WILL IS OF NO HELP WHATSOEVER IN DEALING WITH THE PROBLEMS THAT CAN ARISE IF PARENTS BECOME UNABLE TO CONDUCT THEIR OWN AFFAIRS POSSIBLY YEARS BEFORE THEY DIE MANY PARENTS DON'T WANT TO GIVE SUCH POWER TOO SOON FOR FEAR THE KIDS WILL ABUSE IT SPENDING THE MONEY OR MAKING FOOLISH DECISIONS ONE SOLUTION SAYS MR BOVE IS TO EXECUTE THE DURABLE POWER OF ATTORNEY BUT LEAVE IT WITH A LAWYER TO BE DELIVERED TO THE CHILD WHEN NECESSARY BUT A DURABLE POWER OF ATTORNEY DOESN'T REPLACE A WILL FOR ONE THING ITS POWER LAPSES UPON DEATH AND IN THE ABSENCE OF A WILL OR THE APPROPRIATE TRUSTS THE STATE WILL IMPOSE ITS OWN FORMULA ON DISTRIBUTION OF THE ESTATE IN A SECOND MARRIAGE FOR INSTANCE THAT MEANS THAT THE NEW SPOUSE COULD GET SOME OF THE SHARE INTENDED FOR THE CHILDREN IN A CASE LIKE THAT FOR SURE WE DON'T WANT TO DOWNPLAY THE IMPORTANCE OF A WILL SAYS MR BOVE THE THIRD CRITICAL ITEM IS A HEALTHCARE PROXY WITH THIS DOCUMENT THE PARENT WOULD DELEGATE THE RIGHT TO MAKE HEALTHCARE DECISIONS SUCH AS WHETHER TO UNDERGO AN OPERATION RULES VARY FROM STATE TO STATE BUT OFTEN A LIVING WILL IS INCORPORATED INTO THE DOCUMENT OUTLINING SPECIFICALLY WHAT MEASURES WOULD BE ACCEPTABLE TO PROLONG LIFE WHILE ON THE TOPIC OF HEALTH CARE CHILDREN MAY ALSO WANT TO TACKLE FUNERAL ARRANGEMENTS THIS MAY BE HARDER FOR THE KIDS TO DEAL WITH THAN THE PARENTS SAYS MS SPERO BUT IT IS IMPORTANT TO FIND OUT IF THE PARENTS HAVE ALREADY BOUGHT BURIAL PLOTS OR MADE ARRANGEMENTS WITH A SPECIFIC FUNERAL HOME THE FOURTH AREA IS THE LIST OF ASSETS AND WHERE THEY CAN BE FOUND THAT MEANS LISTING NOT ONLY BANK ACCOUNTS AND STOCK CERTIFICATES BUT ALSO PENSION PLANS INSURANCE POLICIES AND INDIVIDUAL RETIREMENT ACCOUNTS DON'T FORGET THINGS LIKE MONEY DUE SUCH AS A LOAN MADE TO A SISTER BUT NEVER OPENLY DISCUSSED EVEN THE MORTGAGE COUPON BOOK SHOULD BE ON THE LIST PARENTS MAY NOT LIKE TELLING ALL TO THEIR CHILDREN BUT CONSIDER THE ALTERNATIVE OF TRYING TO RECONSTRUCT AN ESTATE WITH NO GUIDELINES IT CAN REALLY BE A NIGHTMARE AND OFTEN IS SAYS MAX GUTIERREZ A PARTNER AT THE LAW FIRM OF BROBECK PHLEGER & HARRISON IN SAN FRANCISCO HE TELLS OF CHILDREN FINDING STOCK CERTIFICATES IN THE ATTIC YEARS AFTER THEIR PARENTS' DEATHS IN ONE CASE MISSING JEWELRY HAD PEOPLE EYEING ONE ANOTHER SUSPICIOUSLY UNTIL IT WAS EVENTUALLY FOUND BEHIND A LOOSE BOARD IN A CLOSET AND IN AT LEAST ONE CASE THE CHILDREN WERE TRYING TO RECONSTRUCT THE ASSETS FROM THE PARENTS' TAX RETURNS ONLY TO FIND THAT THEY HADN'T FILED TAXES FOR YEARS HE SAYS WHEN MAKING THE LIST IT'S A GOOD IDEA TO RECORD THE DATE OF PURCHASE AND THE PURCHASE PRICE THIS PROVIDES A BASIS PRICE FOR TAX PURPOSES IN CASE ASSETS HAVE TO BE SOLD AS THE PARENTS GET OLDER ALSO REMEMBER THAT SOME ASSETS LIKE BROKERAGE ACCOUNTS MAY REQUIRE SPECIAL POWERS OF ATTORNEY SINCE SOME FINANCIAL INSTITUTIONS DON'T HONOR A DURABLE POWER OF ATTORNEY HAVING TACKLED THE BASICS CHILDREN MAY FIND IT EASIER TO BEGIN DISCUSSING FINANCIAL PLANNING WITH THEIR PARENTS SOMETIMES THE MOST IMPORTANT FINANCIAL ASSISTANCE GIVEN AN AGING PARENT MAY BE AS SIMPLE AS HELPING TO OPEN THE MAIL AND PAY THE BILLS OR IT MAY REQUIRE SOME REALLOCATION OF ASSETS BUT CHILDREN MUST BE CAREFUL NOT TO TRAMPLE THEIR PARENTS' SECURITY IN A SEARCH FOR HIGHER YIELD WARNS MS SPERO MONEY SOCKED AWAY IN 3 CERTIFICATES OF DEPOSIT FOR EXAMPLE MAY SEEM A LESSTHANOPTIMUM INVESTMENT TODAY BUT THAT DOESN'T MEAN THE CHILD SHOULD PUSH TO PUT THAT MONEY INTO A RISKIER HIGHERYIELDING INVESTMENT YOU CAN'T DISRUPT SOMEONE THAT MUCH SHE SAYS NOTING THAT THE CDS MAY MAKE THE PARENT FEEL SECURE INDEED ADVISERS SAY THAT IT OFTEN HELPS TO BRING IN A THIRD PARTY IF BIG CHANGES ARE NEEDED THAT TENDS TO MAKE IT EASIER FOR THE PARENT TO ACCEPT THE ADVICE SINCE IT CAN NO LONGER BE EITHER JUDGMENTAL OR SELFSERVING ON THE PART OF THE CHILD 9303260020 930326 WESTINGHOUSE GETS CONTRACT PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT AND MITSUBISHI HEAVY INDUSTRIES LTD WERE AWARDED A 100 MILLION CONTRACT BY SAN DIEGO GAS & ELECTRIC CO FOR THREE COMBUSTION TURBINE GENERATORS THE TURBINES ARE SCHEDULED FOR DELIVERY IN LATE 1995 AND FOR COMMERCIAL OPERATION IN 1997 9303260019 930326 AMERICAN EXPRESS UNIT NEW YORK AMERICAN EXPRESS CO SAID ITS AMERICAN EXPRESS CREDIT CORP UNIT PLANS TO REDEEM TWO SECURITIES ISSUES THE 10 7/8 SENIOR DEBENTURES DUE 2013 WILL BE REDEEMED MAY 15 AT 10544 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST ABOUT 678 MILLION IS OUTSTANDING SOME 150 MILLION OF 8 1/8 SENIOR NOTES DUE 1996 WILL BE REDEEMED JULY 1 AT 100 OF PRINCIPAL AMOUNT WITH ACCRUED INTEREST AMERICAN EXPRESS CREDIT PURCHASES RECEIVABLES ARISING FROM THE USE OF THE AMERICAN EXPRESS CARD 9303260018 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT STAYING HOME UNCOMMON MARKET EUROPEAN COUNTRIES HAVE GONE THEIR SEPARATE WAYS IN THE VIDEORENTAL BUSINESS BY RICHARD L HUDSON PSST WANT THE LATEST VIDEO IN PRAGUE TRY LUCERNAFILM VIDEO RENTAL IT HAS THE WESTERN HITS PLUS ALL THE GLITZ OF A PROVINCIAL PUBLIC LIBRARY THE SHOP'S DUSTY WINDOW DISPLAY FEATURES A CZECH TELEVISION SET OF COMMUNISTERA VINTAGE BESIDE A FEW FADED VIDEO JACKETS INSIDE IN A TINY SPACE WITH FOUR CHAIRS AND A COFFEE TABLE CUSTOMERS CHOOSE THEIR VIDEOS THERE ARE NO RACKS OF VIDEOS TO PERUSE JUST TYPEWRITTEN STOCK LISTS AN ATTENDANT BEHIND A SMALL COUNTER FETCHES THE SELECTIONS RENTAL PRICE ABOUT 1 AS LONG AS YOU CAN PRODUCE A PASSPORT OR STATE IDENTITY CARD THAT'S VIDEO RENTAL IN THE CZECH REPUBLIC BUT ALL AROUND EUROPE THE WAYS OF RENTING AND BUYING VIDEOS HAVE EVOLVED DIFFERENTLY WITH EACH COUNTRY EXHIBITING ITS OWN CULTURAL IDIOSYNCRACIES IN GERMANY MOST VIDEO SHOPS ARE LEGALLY REQUIRED TO COVER UP THEIR WINDOWS LEST THE PORNO FLICKS INSIDE OFFEND IN BRITAIN FAMED AS A NATION OF SHOPKEEPERS CORNER NEWS STORES ARE AMONG THE MOST COMMON VIDEO OUTLETS AND IN FREESPIRITED ITALY OPENAIR MARKETS ARE THE BEST PLACES TO FIND CHEAP ALBEIT PIRATED VIDEOS 35 TO 40 OF THE ITALIAN VIDEO SALES ARE OF PIRATED COPIES ALL THAT DIVERSITY ON ONE WEALTHY CONTINENT IS A HEADACHE FOR THE WORLD VIDEO INDUSTRY TO HANDLE BUT IT'S WELL WORTH IT EUROPE IS WHERE MOST OF THE GROWTH LIES SAYS A SPOKESMAN FOR WALT DISNEY CO'S BUENA VISTA HOME VIDEO DIVISION THE REASON IS SIMPLE VIDEOCASSETTE RECORDERS IN MOST EUROPEAN COUNTRIES AREN'T YET AS WIDESPREAD AS IN THE US WHERE ABOUT 71 OF HOUSEHOLDS HAD A VCR IN 1991 IN EUROPE ONLY BRITAIN MATCHES THAT LEVEL OF PENETRATION MORE TYPICAL IS FRANCE WITH ABOUT 51 OR ITALY WITH ABOUT 31 ALTHOUGH THERE'S PLENTY OF GROWTH POTENTIAL THE EUROPEAN HOMEVIDEO MARKET IS NO SLOUCH NOW GENERATING ABOUT 43 BILLION IN REVENUE LAST YEAR IN THE 12 EUROPEAN COMMUNITY NATIONS ALONE ACCORDING TO THE BRITISH VIDEOGRAM ASSOCIATION AN INDUSTRY TRADE GROUP OF THAT US FILM COMPANIES TOOK THE LION'S SHARE IN EVERY EUROPEAN COUNTRY THE FASTESTMOVING VIDEOS FOR RENT OR SALE ARE PRODUCTS OF HOLLYWOOD IN BRITAIN THE TOP 50 RENTAL VIDEOS IN THE YEAR ENDED LAST JUNE 30 WERE ALL AMERICAN NOT ONE FRENCH ITALIAN OR EVEN BRITISH VIDEO MADE THE CHARTS ACCORDING TO NORMAN ABBOTT THE BVA'S DIRECTOR GENERAL THE RENTAL MARKET IS INCREASINGLY DOMINATED BY BLOCKBUSTER' MOVIES AND THAT MEANS HOLLYWOOD MR ABBOTT SAYS THAT IMPARTS SOME UNIFORMITY TO EUROPEAN TASTES THROUGHOUT WESTERN EUROPE THE FASTESTMOVING VIDEOS INCLUDE DUBBED OR SUBTITLED VERSIONS OF DISNEY'S FANTASIA AND CINDERELLA AND TIME WARNER INC'S ROBIN HOOD PRINCE OF THIEVES BUT HOMEGROWN PRODUCTS ARE HOT AMONG EUROPEANS WHO BUY RATHER THAN RENT THEIR VIDEO KICKS AFTER THE STANDARD HOLLYWOOD BLOCKBUSTERS LOCALLY PRODUCED FILMS COOKING PROGRAMS SPORTS SHOWS AND DOCUMENTARIES ARE BIG SELLERS IN THE RECESSIONMIRED UK FOR INSTANCE LOCAL COMEDY IS POPULAR THE AMAZING ADVENTURES OF MR BEAN AND THE EXCITING ESCAPADES OF MR BEAN ARE BOTH BESTSELLERS FEATURING A COMEDIAN WHO SAYS NARY A WORD THROUGH TWO REELS OF MIMED COMIC SKITS IT'S IN VIDEODISTRIBUTION METHODS HOWEVER RATHER THAN IN THE BESTSELLER LISTS THAT THE REAL DIFFERENCES AMONG EUROPEAN COUNTRIES BECOME APPARENT BRITAIN AS THE BIGGEST VIDEO MARKET IN EUROPE WITH 35 OF EC RENTALS AND 29 OF SALES HAS PECULIARITIES THAT START EVEN BEFORE THE CASSETTES ARE MADE BY LAW GOVERNMENTAUTHORIZED CENSORS SNIP THEIR WAY THROUGH MILLIONS OF FEET OF NEW VIDEO RELEASES EACH YEAR AMONG THE SCENES THAT BRITISH VIDEOPHILES NEVER SAW A SEVENSECOND SEGMENT OF THE FIRST CROCODILE DUNDEE MOVIE IT SHOWS THE NAIVE AUSTRALIAN HERO ADRIFT IN NEW YORK CATCHING HIS FIRST SIGHT OF SOMEONE SNORTING COCAINE HE ASSUMES THE MAN JUST HAS A COLD A FEATURE OF THE BRITISH MARKET NOW IS A SHOOTOUT BETWEEN NEW GLEAMING USSTYLE VIDEO CHAINS AND THE CONVENTIONAL BRITISH OUTLET CORNER NEWS DEALERS AND VILLAGE VARIETY STORES THE CHAINS OF WHICH THE BIGGEST IS BLOCKBUSTER ENTERTAINMENT CORP HAVE MORE TITLES MORE COPIES AND MORE CONSUMERMARKET SAVVY BUT THE SMALL SHOPS STRUGGLE ON TYPICAL OF THE OLD WAY IS DHAWAN NEWSAGENTS A CROWDED LITTLE LONDON SHOP OF NEWSPAPERS MAGAZINES GREETING CARDS CANDIES SOFT DRINKS STATIONERY AND 5000 VIDEOS IN THE BASEMENT THE ENTRY TO THIS UNDERGROUND TROVE IS AT THE BACK OF THE SHOP AND DOWN A WINDING LOWCEILINGED STAIRCASE THE TINY BASEMENT IS THICK WITH EMPTY VIDEO BOXES SOME ARE DISPLAYED ON CAROUSELS OR WALLS BUT MOST ARE JUST STACKED LIKE DUSTY OLD BOOKS ON THE FLOOR WITH ONLY THEIR SPINES SHOWING FOR THE DHAWAN FAMILY THAT OWNS THE SHOP VIDEOS ARE JUST A SIDELINE THAT KIND OF GREW BY LONDON STANDARDS THE RENTAL PRICE IS MODERATE THE EQUIVALENT OF ABOUT 350 A NIGHT THE VIDEO CHAINS USUALLY CHARGE ABOUT 375 OR MORE AND A NIGHT OUT AT A LONDON CINEMA CAN EASILY COST ABOUT 8 A HEAD AND DHAWAN HAS ALL THE HOLLYWOOD BLOCKBUSTERS BUT THE VIDEO SECTION IS LOSING MONEY WHERE ONCE IT RENTED 40 VIDEOS A NIGHT NOW IT'S LUCKY TO RENT 15 WHERE ONCE STUDIO REPRESENTATIVES SOUGHT MR DHAWAN'S BUSINESS NOW HE HAS TO FIGHT FOR THEIR ATTENTION THEY DON'T WANT TO KNOW US SMALL GUYS ANY MORE HE SAYS BITTERLY HIS MAIN PROBLEM IS A FEW BLOCKS DOWN THE ROAD A CLEAN BRIGHTLY LIGHTED STREETLEVEL OUTLET OF PRIME TIME VIDEO LTD A BRITISH CHAIN THIS PARTICULAR SHOP OPENED TWO YEARS AGO AND NOW ATTRACTS AS MANY AS 400 CUSTOMERS A DAY ALL CASSETTES ARE TIDILY DISPLAYED ON LABELED RACKS INCLUDING TWO SECTIONS OF FRENCH FILMS FOR THE MANY FRENCH EXPATRIATES IN THE NEIGHBORHOOD SIX TV SCREENS SIMULTANEOUSLY PROJECT THE LATEST VIDEO THAT THE SHOP IS PROMOTING THERE'S A POPCORN MACHINE A SOFTDRINK CASE AN ICECREAM CASE AND A PERSONAL COMPUTER ON WHICH CLIENTS CAN BROWSE THEIR OWN WAY THROUGH LISTS OF DIRECTORS ACTORS AND FILM TITLES WHILE NOTHING SPECIAL IN THE US IN MOST EUROPEAN COUNTRIES THIS KIND OF WELCOMING VIDEO PALACE IS A NOVELTY OUTSIDE VIDEO EXPRESS IN OBERPLEIS A GERMAN TOWN NEAR BONN A LITTLE BOY RECENTLY STOOD BY THE SHOP DOOR WAITING IMPATIENTLY FOR HIS PARENTS TO EMERGE WITH A DISNEY FILM BY GERMAN LAW NOBODY UNDER 18 IS ALLOWED INSIDE MOST VIDEO SHOPS THE TYPICAL PORNOGRAPHICVIDEO SECTION INSIDE IS CONSIDERED TOO LARGE FOR THE PRESENCE OF MINORS THE FILMS RENTED MOST OFTEN ARE DECIDEDLY PORNOS PORNOS AND THEN ACTION MOVIES SAYS SHOP CLERK SIMONE ZENS IN FRANCE THE INDUSTRY TAKES A HIGHER TONE VIDEO PURCHASE RATHER THAN RENTAL IS THE MAIN BUSINESS PERHAPS BECAUSE THE FRENCH OFTEN LIKE COLLECTING THINGS SAYS CAMILLE TRUMER HEAD OF THE VIDEO DEPARTMENT OF FNAC ONE OF FRANCE'S BIGGEST DEPARTMENTSTORE CHAINS BUT ALL ISN'T HAPPY IN EUROPEAN VIDEO IN ITALY THE MARKET'S SLOW GROWTH AND OTHER ILLS ARE ENOUGH TO MAKE A VIDEO DISTRIBUTOR CRY VIDEO PIRACY IS RAMPANT SAYS FRANCESCO FANTI PRESIDENT OF THE ITALIAN VIDEOINDUSTRY ASSOCIATION DISNEY'S BEAUTY AND THE BEAST A HOTSELLING VIDEO IN THE US BUT NOT YET OFFICIALLY RELEASED ON VIDEO IN EUROPE IS WIDELY AVAILABLE IN PIRATED VERSIONS BUT IT GETS WORSE FOR THE INDUSTRY IT SEEMS TOO FEW ITALIANS LATELY HAVE TIME FOR VIDEO SAYS MR FANTI WE'VE GOT CORRUPTION MAFIA AND ECONOMIC CRISIS WE DON'T KNOW THE FUTURE OF OUR GOVERNMENT ITALIANS ARE HEADING PSYCHOLOGICALLY IN MANY DIRECTIONS WATCHING VIDEOS ISN'T ONE OF THEM MR HUDSON A STAFF REPORTER IN THE WALL STREET JOURNAL'S LONDON BUREAU WAS ASSISTED IN THIS ARTICLE BY AMY BARRETT IN PRAGUE ANNEMICHELLE MORICE IN PARIS MAUREEN KLINE IN MILAN AND NIKKI HOUSTONWAESCH IN BONN 9303260017 930326 TOWERS FINANCIAL SEEKS CHAPTER 11 FOR 5 BILLING UNITS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOWERS FINANCIAL CORP SAID IT HAS SOUGHT BANKRUPTCY COURT PROTECTION FOR FIVE OF ITS HEALTHCARE BILLING SUBSIDIARIES CITING OBSTACLES BY THE UNITS' BOND TRUSTEE THE DEBT COLLECTION AND FACTORING CONCERN SAID IT FILED FOR CHAPTER 11 PROTECTION FOR THE UNITS AFTER ITS HAND WAS FORCED BY SHAWMUT BANK CONNECTICUT A UNIT OF SHAWMUT NATIONAL CORP THE BANK WHICH IS TRUSTEE FOR TOWERS' HEALTHCARE UNITS' BONDS REFUSED TO RELEASE OVER 20 MILLION IN TOWERS FUNDS TO ABOUT 260 CASHSTARVED HOSPITALS AND NURSING HOMES WHICH ARE TOWERS' HEALTHCARE CLIENTS THESE FACILITIES HAVE APPROXIMATELY 50000 PATIENTS AND EMPLOYEES STEVEN HOFFENBERG CHAIRMAN AND CHIEF EXECUTIVE OF TOWERS SAID TO CUT THEM OFF AS SHAWMUT HAS DONE IS IRRESPONSIBLE AT BEST INTENTIONALLY NASTY AT WORST IT MAKES A JOKE OF THEIR POSITION AS BOND TRUSTEE A SHAWMUT NATIONAL SPOKESMAN COUNTERED THIS IS A SELFMADE PREDICAMENT TOWERS IS AWARE THAT ONCE THEY DEFAULT THE TRUSTEE CAN'T EXTEND THEM FUNDS TOWERS HAD EARLIER DEFAULTED ON 200 MILLION IN HEALTHCAREBACKED BONDS WHICH LEFT THE MEDICAL PROVIDERS TEETERING ON THE EDGE OF FINANCIAL RUIN SHAWMUT HAD SAID IT COULDN'T PAY THE PROVIDERS WITHOUT ACCESS TO TOWERS' FINANCIAL RECORDS MR HOFFENBERG SAID TOWERS HAD PROVIDED SHAWMUT WITH THE INFORMATION FOUR SEPARATE TIMES THIS IS NOT A WIDOWS AND ORPHANS CASE SAID MR HOFFENBERG THE ONLY CREDITORS HERE ARE 18 BONDHOLDERS AND THEY ARE ALL LARGE BANKS AND INSURANCE COMPANIES MR HOFFENBERG ALSO SAID TOWERS HAD INFORMED SHAWMUT EARLIER THIS WEEK THAT IT HAD INCORRECTLY FILED CERTAIN LIEN DOCUMENTS DEFINING ITS AGREEMENT WITH THE HEALTHCARE UNITS BECAUSE OF THAT MR HOFFENBERG SAID SHAWMUT WOULD BECOME SUBORDINATE TO ABOUT 2800 PUBLIC NOTEHOLDERS AND WILL BECOME LIABLE TO THE BONDHOLDERS FOR 200 MILLION HE ADDED THAT THE BANK WOULD LIKELY BE SUED BY BONDHOLDERS FOR THAT AMOUNT THE SHAWMUT SPOKESMAN SAID THE BANK HADN'T BEEN INFORMED BY MR HOFFENBERG OF HIS CONTENTIONS SEPARATELY A TURNAROUND SPECIALIST COMPANY IN NEW YORK SAID IT HAD A PROSPECTIVE AGREEMENT TO PROVIDE MANAGEMENT CONSULTANCY SERVICES TO THE COURTAPPOINTED AUDITOR FOR TOWERS JESS FARDELLA THE COMPANY QUALITY REORGANIZATION MANAGEMENT INC WOULD ALSO HAVE AN OPTION TO ACQUIRE 49 OF MR HOFFENBERG'S STAKE IN TOWERS MR HOFFENBERG OWNS ABOUT 80 OF TOWERS A QUALITY SPOKESMAN SAID IF THIS WERE TO HAPPEN IT WOULD END MR HOFFENBERG'S MAJORITY CONTROL SUCH A TRANSACTION WOULD REQUIRE APPROVAL OF THE SECURITIES AND EXCHANGE COMMISSION AND THE FEDERAL JUDGE PRESIDING OVER A SEC LAWSUIT AGAINST TOWERS AND MR HOFFENBERG MR FARDELLA COULDN'T IMMEDIATELY BE REACHED FOR COMMENT 9303260016 930326 BUSINESS BRIEF ARCADIAN TO PURCHASE TWO CARIBBEAN FIRMS FOR FERTILIZER MARKET MEMPHIS TENN ARCADIAN PARTNERS LP IN A MOVE TO EXPAND INTERNATIONALLY DEFINITIVELY AGREED TO ACQUIRE TWO CARIBBEAN NITROGEN FERTILIZER CONCERNS FOR 175 MILLION ARCADIAN SAID IT WON A COMPETITIVE BIDDING PROCESS FOR THE COMPANIES FERTILIZERS OF TRINIDAD & TOBAGO LTD WHICH IS 51OWNED BY THE GOVERNMENT AND 49OWNED BY AMOCO CORP'S AMOCO OIL HOLDING CO AND TRINIDAD & TOBAGO UREA CO LTD WHICH IS WHOLLY OWNED BY THE GOVERNMENT ARCADIAN SAID IT WILL FUND THE ACQUISITIONS THROUGH THE USE OF DEBT ARCADIAN WHICH IS ALREADY A LARGE MAKER AND DISTRIBUTOR OF NITROGEN FERTILIZERS AND RELATED PRODUCTS SAID THE ACQUISITIONS ARE A STRATEGIC MOVE TO IMPROVE ITS PRESENCE IN MARKETS OF EUROPE CENTRAL AND SOUTH AMERICA AND THE CARIBBEAN AS WELL AS TO STRENGTHEN ITS US POSITION IT EXPANDS OUR HORIZONS QUITE A BIT SAID DOUGLAS CAMPBELL ARCADIAN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER THE BUSINESS OPERATIONS INCLUDE BOTH AMMONIA AND UREA PRODUCTION FACILITIES WITH ANNUAL PRODUCTION CAPACITIES OF 840000 AND 590000 SHORT TONS OF PRODUCT RESPECTIVELY THE COMPANY SAID IT DIDN'T DISCLOSE THE COMPANIES' REVENUES HARVEY STOBER AN ANALYST WITH DEAN WITTER ESTIMATED THE ACQUISITION WOULD IMMEDIATELY INCREASE EARNINGS ADDING 20 CENTS TO 25 CENTS A SHARE TO ANNUAL PROFIT ASSUMING CURRENT MARGINS HOLD HE SAID THE PRICE FOR THE ACQUISITION WAS WITHIN THE RANGE HE EXPECTED LAST MONTH ARCADIAN IN ANOTHER MOVE TO EXPAND ITS NITROGEN CHEMICAL BUSINESS SIGNED A LETTER OF INTENT TO ACQUIRE BP CHEMICALS' NITROGEN CHEMICALS BUSINESS FOR ABOUT 100 MILLION SUBJECT TO ENTERING INTO A DEFINITIVE AGREEMENT BP CHEMICALS IS A SUBSIDIARY OF BRITISH PETROLEUM CO 9303260015 930326 FIAT OFFICIALS ORDERED TO STAY IN JAIL PENDING CORRUPTION INQUIRY SPECIAL TO THE WALL STREET JOURNAL MILAN A MILAN COURT RULED THAT TWO TOP EXECUTIVES OF FIAT SPA SHOULD REMAIN IN JAIL PENDING THE INVESTIGATION OF CORRUPTION CHARGES AGAINST THEM THE COURT REJECTED A REQUEST BY FRANCESCO PAOLO MATTIOLI CHIEF FINANCIAL OFFICER OF FIAT AND ANTONIO MOSCONI MANAGING DIRECTOR OF TORO ASSICURAZIONI SPA FIAT'S INSURANCE UNIT THAT THEY BE SET FREE MESSRS MATTIOLI AND MOSCONI WERE ARRESTED LAST MONTH ON CORRUPTION CHARGES INVOLVING FIAT'S CONSTRUCTION UNIT COGEFARIMPRESIT SPA MR MATTIOLI IS ALSO CHAIRMAN OF COGEFARIMPRESIT AND MR MOSCONI WAS FORMERLY VICE CHAIRMAN OF THE CONSTRUCTION UNIT FIAT IS ITALY'S LARGEST PRIVATESECTOR INDUSTRIAL GROUP THE INVESTIGATION IS PART OF THE CONTINUING INVESTIGATION IN A VAST POLITICAL AND BUSINESS CORRUPTION SCANDAL THAT HAS SEEN MORE THAN 1000 PEOPLE ARRESTED OVER THE PAST 13 MONTHS 9303260014 930326 DIVIDEND NEWS SCIENTIFIC TECHNOLOGIES INC SCIENTIFIC TECHNOLOGIES INC HAYWARD CALIF SAID IT INCREASED ITS QUARTERLY DIVIDEND 20 TO THREE CENTS A COMMON SHARE FROM 2 1/2 CENTS THE COMPANY WHICH MAKES FACTORY AUTOMATION DEVICES ALSO DECLARED A SPECIAL DIVIDEND OF FIVE CENTS A SHARE BOTH WILL BE PAYABLE APRIL 12 TO STOCK OF RECORD APRIL 5 9303260013 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT MAKING MUSIC TAKE YOUR PICK LET'S SEE THERE'S THE CD OF COURSE AND THE LP AND THE MINIDISC AND DCC BY PATRICK M REILLY AT FIRST GLANCE THERE'S NOTHING LIKE A POPMUSIC HIT TO MAKE THE WORLD SEEM SMALLER IMAGINE THE SCENE EARLIER THIS YEAR AS WHITNEY HOUSTON'S MOVIESOUNDTRACK ALBUM THE BODYGUARD CLIMBED THE CHARTS WORLDWIDE FANS IN TOKYO CHICAGO ATHENS LONDON AMSTERDAM EVERYWHERE IT SEEMED WERE SIMULTANEOUSLY SWAYING TO THE STRAINS OF I WILL ALWAYS LOVE YOU BUT LOOK A BIT CLOSER AND THE WORLD DOESN'T SEEM SO SMALL IN THE NETHERLANDS AND JAPAN MS HOUSTON'S PIPES WERE HEARD MOSTLY ON THE DIGITALLY PURE COMPACTDISK FORMAT IN CANADA AND THE UNITED KINGDOM THE BODYGUARD SOLD HEAVILY ON GOOD OLD ANALOG AUDIOCASSETTE TAPES AND IN BRAZIL AND GREECE THE STEAMY SONGS WERE PLAYED MOSTLY ON LONGPLAYING BLACK VINYL RECORDS VIRTUALLY OBSOLETE IN THE US AND OTHER MAJOR MARKETS THERE'S NO QUESTION ABOUT IT WHEN IT COMES TO MUSIC FORMATS THE WORLD IS GROWING MORE DIVERSE WE HAVE TO GET USED TO THE VARIETIES OF MUSICAL FORMATS SAYS RON SOMMER PRESIDENT AND CHIEF EXECUTIVE OF SONY CORP OF AMERICA SONY SHOULD KNOW THE COMPANY HAS INVESTED HEAVILY IN THE PRODUCTION OF HARDWARE THAT PLAYS AUDIOCASSETTES DIGITAL AUDIO TAPE COMPACT DISKS AND THE RECENTLY INTRODUCED MINIDISC SONY EVEN STILL SELLS RECORD TURNTABLES IN SOME COUNTRIES MOREOVER THE DIFFERENCES WILL ONLY GROW THANKS TO THE RECENT INTRODUCTION OF TWO NEW FORMATS THE DIGITAL COMPACT CASSETTES OR DCC FROM PHILIPS ELECTRONICS NV AND MATSUSHITA ELECTRIC INDUSTRIAL CO AND THE MINIDISC THE WORLD'S FIRST RECORDABLE CD SYSTEM FOR NONPROFESSIONALS FROM SONY CORP IT'S ENOUGH TO MAKE MUSIC BUYERS SCREAM IN FRUSTRATION AND RECORD COMPANIES CRINGE WE AREN'T HAPPY WITH FOUR FORMATS OR MORE SAYS MARCO VERSTEIJNE HEAD OF CORPORATE MARKET RESEARCH FOR POLYGRAM NV WHICH IS 80OWNED BY PHILIPS IT TENDS TO CONFUSE CONSUMERS SO WHY DOES IT HAPPEN WHY AREN'T THERE JUST ONE OR TWO UNIVERSAL FORMATS PART OF THE REASON IS SIMPLE THE MORE ADVANCED A COUNTRY'S ECONOMY THE MORE ADVANCED ITS EQUIPMENT IT DOESN'T TAKE A GENIUS TO KNOW YOUR MOST INEXPENSIVE FORMAT WILL DO BEST IN COUNTRIES WITH RELATIVELY LOW STANDARDS OF LIVING SAYS CHRISTOPHER ROBERTS VICE PRESIDENT OF INTERNATIONAL MARKETING FOR POLYGRAM RECORDS IN GREECE FOR INSTANCE LPS STILL SELL AT FIVE TIMES THE PACE OF CDS BRAZIL HAS THE HIGHEST RECORDED LP SALES 285 MILLION UNITS IN 1991 THE LATEST FIGURES AVAILABLE THAT WAS FOUR TIMES BRAZIL'S COMPACTDISK SALES IN MEXICO THE CASSETTE IS KING SELLING AT A RATE SIX TIMES THAT OF COMPACT DISKS BUT ECONOMICS IS ONLY PART OF THE EQUATION YOU HAVE TO CONSIDER THE INCOME LEVELS OF THE YOUNG PEOPLE IN A GIVEN COUNTRY BUT YOU HAVE TO LOOK AT THE GENERAL HABITS OF THE POPULATION SAYS WILL WHITEHORN A SPOKESMAN FOR VIRGIN MEGASTORES UK A DIVISION OF VIRGIN RETAIL GROUP LTD OF LONDON MR WHITEHORN NOTES FOR INSTANCE THAT DURING MOST OF THE 1980S SALES OF VINYL LPS IN THE UNITED KINGDOM DIDN'T FALL AS QUICKLY AS IN SOME OTHER COUNTRIES THE EXPLANATION IT SEEMS THAT THE BRITISH SPEND A TREMENDOUS AMOUNT OF TIME ON PUBLIC TRANSPORTATION AND MANY OF THEM WERE TRANSFERRING LPS TO TAPE FOR THE RIDE HENCE LP SALES STAYED SURPRISINGLY STRONG EVEN AS CASSETTES BOOMED BUT PROGRESS APPARENTLY CAN'T BE STOPPED JUST SLOWED AS THE PRICE OF CAR AND PORTABLE COMPACTDISK PLAYERS HAS COME DOWN AND BOOGEYBOXES THE BRITISH TERM FOR BOOM BOXES HAVE BEEN EQUIPPED WITH CD PLAYERS CD SALES ARE CLIMBING BY 1990 MOST 35YEAROLDS WERE LISTENING TO CDS IN CARS AND AT HOME VIRGIN'S MR WHITEHORN SAYS IN 1991 63 MILLION COMPACT DISKS WERE SHIPPED TO UK DEALERS ALMOST AS MANY AS THE 67 MILLION PRERECORDED CASSETTES THAT WERE SHIPPED IN SCANDINAVIAN COUNTRIES AUDIOCASSETTES ARE STILL A MAJOR MARKET FORCE BUT FOR DIFFERENT REASONS IN NORWAY DRIVERS FACE LONG STRETCHES OF BARREN ROAD AND A RELATIVELY LOW NUMBER OF RADIO STATIONS TO TUNE IN TO SO NORWEGIAN DRIVERS RELY HEAVILY ON THEIR CAR CASSETTE PLAYERS MOST GAS STATIONS CARRY A FULL RANGE OF CASSETTES FOR DRIVERS TO CHOOSE FROM FROM JAPAN THOUGH CULTURAL HABITS TELL ANOTHER STORY WITH THEIR LOVE OF NEW TECHNOLOGY THE JAPANESE ARE IN THE FOREFRONT OF EVERY NEW FORMAT TREND NOW THEY ARE LEADING THE PHASING OUT OF AUDIOCASSETTES IN THE LATEST FIGURES JAPAN'S COMPACTDISK SALES IN 1991 TOTALED 300 MILLION UNITS DWARFING THE 46 MILLION CASSETTES SOLD BY CONTRAST FIGURES OF THE INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY SHOW THAT 13 BILLION CASSETTES WERE SOLD WORLDWIDE IN 1991 FOLLOWED CLOSELY BY COMPACT DISK'S SALES OF 11 BILLION IFPI PREDICTS THAT THE 1992 FIGURES DUE OUT LATER THIS YEAR WILL SHOW THE CD AS THE WORLD'S LEADING FORMAT VIRGIN'S MR WHITEHORN RECALLS WALKING THROUGH RESIDENTIAL AREAS OF JAPAN WHERE HE WOULD SEE CASSETTEBASED STEREO SYSTEMS IN DUMPSTERS OUTSIDE HOMES IN THE US WE THINK OF THE AUDIOPHILE AS THE FIRST ONE ON THE BLOCK TO HAVE MINIDISCS AND DCC BUT IN JAPAN EVERYBODY IS THE FIRST ON THE BLOCK TO HAVE NEW TECHNOLOGY SAYS JASON BERMAN PRESIDENT OF THE RECORDING INDUSTRY ASSOCIATION OF AMERICA WHILE CD DOMINANCE APPEARS INEVITABLE THE VINYL LP AND SINGLE LIVE ON IN SOME COUNTRIES AND NOT JUST FOR ECONOMIC REASONS IN THE STEAMY DANCE CLUBS OF LONDON AND BERLIN FOR EXAMPLE THE 12INCH BLACK VINYL SINGLE REMAINS A FIXTURE WHILE CDS ARE MAKING INROADS INTO CLUBS VINYL PLATTERS ARE EASIER FOR DISK JOCKEYS TO HANDLE IN THE DIM CONFINES OF CLUBS IN ADDITION ARTISTS HAVE LONG RELEASED EXTENDED VERSIONS OF THEIR HIT SONGS ON 12INCH VERSIONS SALES OF VINYL SINGLES IN THE UK TOTALED 36 MILLION UNITS IN 1991 THE MOST OF ANY COUNTRY IN THE WORLD IN THE US BY CONTRAST ONLY FIVE MILLION VINYL LPS WERE SOLD THAT YEAR THEN THERE IS THE CLIMATE STILL ANOTHER FACTOR CITED IN THE NATURAL SELECTION OF FORMATS LISTENERS IN NORTHERN EUROPEAN COUNTRIES AND JAPAN ARE FORCED TO SPEND MORE TIME INSIDE WHERE THE HISSFREE SOUND OF COMPACT DISKS IS FULLY APPRECIATED IN MEDITERRANEAN COUNTRIES MORE TIME IS SPENT ON THE BEACH AND THUS THE LISTENING FORMAT HAS TO BE PORTABLE AS IN CASSETTEBASED PERSONAL STEREOS OR THE BOOM BOX BUT CDPUMPING BOOM BOXES NOW THE RAGE IN THE US WOULD BE OFF LIMITS IN GREECE PEOPLE SPEND MORE TIME ON THE BEACHES AND ON THE BEACH THEY DISAPPROVE OF OUTDOOR MUSIC HE SAYS WHAT'S AHEAD SOME COUNTRIES MAY NOT SEE ANY SIGNIFICANT NUMBER OF DCC OR MINIDISC MACHINES FOR YEARS BUT THE TWO FORMATS ARE LIKELY TO COMPETE HEAD TO HEAD FOR A LONG TIME IN PORTABLE CAR AND HOME APPLICATIONS DCC MACHINES WHICH HAVE A SUGGESTED RETAIL PRICE RANGING FROM 700 TO MORE THAN 1000 PLAY BOTH DIGITAL AND ANALOG TAPES SONY'S MINIDISC IS A MINIATURIZED VARIATION ON THE STANDARD CD BUT IT IS SHOCKPROOF AND IS THE FIRST COMPACTDISK PRODUCT TO OFFER CONSUMERS THE ABILITY TO RECORD AT HOME MINIDISC PLAYBACKONLY AND PLAYBACK/RECORD MACHINES HAVE SUGGESTED RETAIL PRICES OF BETWEEN 550 AND 750 ALL THE MAJOR RECORD COMPANIES WITH THE EXCEPTION OF SONY MUSIC WERE EARLY SUPPORTERS OF THE DCC FORMAT RECORD COMPANIES WERE MORE CAUTIOUS ABOUT MINIDISC BUT WITH HIGH DEMAND FOR MINIDISC PLAYERS LAST CHRISTMAS INDUSTRY CONFIDENCE IN THE TECHNOLOGY IS BUILDING SONY NOW HAS THE SUPPORT OF THE MUSIC GROUPS AT TIME WARNER INC THORN EMI PLC AND SEVERAL OTHER IMPORTANT MUSIC LABELS IN THE LAUNCH OF MINIDISC SONY HAS AIMED AT HIGHERINCOME MARKETS INITIALLY TARGETING CONSUMERS IN MORE WEALTHY COUNTRIES SUCH AS THE US JAPAN GERMANY AND FRANCE THIS YEAR IT PLANS TO GRADUALLY REACH SPAIN PORTUGAL PARTS OF EASTERN EUROPE AND RUSSIA SINGAPORE AUSTRALIA MEXICO AND PUERTO RICO WITH A FEW MONTHS' HEAD START PHILIPS IS TAKING ITS DCC MACHINES ON A SIMILAR ROUTE LAUNCHING FIRST IN THE US JAPAN UK AND CANADA DCC WILL SOON START SHOWING UP IN ITALY AND SPAIN SONY IS PUSHING ITS MINIDISC SYSTEMS HARD HOPING TO MAKE CONSUMERS COMFORTABLE WITH YET ANOTHER FORMAT IN THE UK THE COMPANY ATTACHED AN ACTUAL MINIDISC DISK TO THE FEBRUARY COVER OF Q A POPULAR MUSIC MAGAZINE READERS COULD TEAR OFF THE DISK TAKE IT TO A DESIGNATED ELECTRONICS HARDWARE STORE AND PLUG IT INTO A MINIDISC PLAYER ON THE COUNTER SOME WON A 750 MINIDISC PLAYER AND EVERYBODY RECEIVED A FREE DEMONSTRATION OF MINIDISC TECHNOLOGY SUCH A PROMOTION WON'T WORK IN EVERY COUNTRY SAYS ALAN PHILLIPS VICE PRESIDENT SOUND TECHNOLOGY MARKETING FOR SONY SOFTWARE UK NOT ALL COUNTRIES HAVE A Q FOR THE PERFECT TARGET AUDIENCE AND CERTAIN PUBLISHERS DON'T AGREE WITH THE IDEA WE'LL HAVE TO TRY OTHER THINGS WITH ALL THE DIFFERENT FORMATS THE MUSIC INDUSTRY IS IN DIRE NEED OF IMPROVED SALESTRACKING ACCURACY AS IT IS SALES FIGURES PARTICULARLY IN EUROPE ARE OFTEN RIDDLED WITH INACCURACIES SOUNDSCAN INC A HARTSDALE NY COMPANY THAT CREATED ACCURATE COMPUTERIZED SALES CHARTS FOR THE US IS PLANNING SIMILAR CHARTS FOR SEVERAL WESTERN EUROPEAN COUNTRIES MIKE FINE SOUNDSCAN'S CHIEF EXECUTIVE SAYS HIS COMPANY'S US CHARTS WERE A REVELATION TO MANY RETAILERS WHO HAD ASSUMED THAT CERTAIN FORMATS CONTINUED TO SELL IT WASN'T UNTIL THEY HAD COMPUTERS THAT THEY REALIZED THEY WEREN'T SELLING AS MUCH VINYL AS THEY THOUGHT SO THEY GOT RID OF IT MR FINE SAYS THE SYSTEM WILL BE ABLE TO MEASURE THE POPULARITY OF SUCH RELATIVELY NEW FORMATS AS THE FIVEINCH CD SINGLE NOW THEY WILL SEE IF THIS STUFF REALLY SELLS MR FINE SAYS MR REILLY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9303260012 930326 GLOBAL ENTERTAINMENT A SPECIAL REPORT THE END THE WORLD IS OUR OYSTER AND HERE ARE SOME TV PEARLS WE CAN ALL LOOK FORWARD TO BY DAVID BLUM THE NEWS THAT WE WILL SOON HAVE 500 TELEVISION CHANNELS TO CHOOSE FROM IS WELCOME INDEED THE RECENT BRUCE SPRINGSTEEN HIT SONG 57 CHANNELS AND NOTHING ON CLEARLY ADDRESSED ONE OF OUR CULTURE'S MOST PRESSING PROBLEMS NAMELY THAT WE HAVE FEWER THAN FIVE DOZEN CHANNELS TO CHOOSE FROM IN FACT I HAVE HEARD PEOPLE COMPLAIN THAT THEY WISH THEY HAD BRUCE SPRINGSTEEN'S PROBLEM BUT LIVE IN A DEPRIVED NEIGHBORHOOD WHERE ONLY 30 OR 40 CHANNELS ARE AVAILABLE I BELIEVE FIRMLY THAT WHEN THIS NEW ERA DAWNS CHANNEL SURFING WILL EMERGE AS OUR NATION'S MOST POPULAR SPECTATOR SPORT AND THE WINNER WILL BE YOU THE AMERICAN COUCH POTATO IT WILL TAKE HOURS TO EVEN MAKE ONE COMPLETE PASS THROUGH THE AVAILABLE NETWORKS CUSTODY BATTLES WILL RAGE AMONG COUPLES OVER REMOTE CONTROLS AND WHAT WILL WE BE WATCHING NATURALLY NETWORK HONCHOS HAVE NOT EVEN BEGUN LOOKING INTO THE SEEMINGLY SMALL SIDE ISSUE OF WHAT THESE 500 CHANNELS WILL BE THIS WOULD INTERFERE WITH THE MORE IMPORTANT TASKS THEY FACE EACH DAY SUCH AS THE DEVELOPMENT OF NEW SITCOM VEHICLES FOR MEMBERS OF ROSEANNE ARNOLD'S FAMILY HERE IS MY SUGGESTION WHY NOT FOLLOW THE TIMEHONORED TRADITION OF IMPORTING TV CONCEPTS FROM OVERSEAS CHANNELS YOU WILL RECALL THAT THAT WONDERFULLY ENTERTAINING TV FARCE THREE'S COMPANY ORIGINATED AS A BRITISH COMEDY AS DID THE BEGUILING COMEDY DEAR JOHN A FEW YEARS LATER AS A PUBLIC SERVICE I HAVE BEEN PERUSING FOREIGN BROADCAST OUTLETS IN RECENT WEEKS AND FOUND SEVERAL POPULAR TV CONCEPTS THAT I BELIEVE WOULD MAKE EXCELLENT CHANNEL FODDER ON OUR SHORES WHAT FOLLOWS IS A LIST OF SOME OF THE MORE INNOVATIVE CONCEPTS THAT I HAVE NO DOUBT WILL CAPTURE THE ATTENTION SPAN OF THE AMERICAN TV VIEWER FOR 20 SECONDS IF NOT MORE THIS ITALIAN SHOW REVEALS FIRSTHAND THE PRECISE NATURE OF THAT NATION'S RAIL SYSTEM FIRST CONCEIVED AS A WEEKLY SERIES BY BENITO MUSSOLINI WHO BY THE WAY SET THE STANDARD FOR THE FASCIST NETWORK EXECUTIVES OF OUR ERA THIS PROGRAM CHARTS THE ARRIVALS AND DEPARTURES OF EACH AND EVERY ITALIAN TRAIN DOCUMENTING ITS RELENTLESSLY ONTIME SCHEDULE ONE OF MY FAVORITE SEGMENTS IS WHEEL PEOPLE WHICH INTERCUTS BETWEEN CLOSEUP SHOTS OF TRAIN WHEELS SCREECHING TO A HALT THE CONDUCTOR SLAMING ON THE BRAKES AND A STOPWATCH MONITORING THE ARRIVAL TIME OF THE TRAIN DOWN TO A HUNDREDTH OF A SECOND FROM SWITZERLAND COMES THIS WONDERFUL SERIES OF VIGNETTES ABOUT CHEESE NATURALLY IT HOLDS AN INEVITABLE BIAS TOWARDS SWISS ONE GETS WEARY AFTER A WHILE WITH THE 20PART DOCUMENTARY THE HOLE TRUTH WHICH EXAMINED THE RECENT SEX SCANDALS IN THE SWISS CHEESE INDUSTRY BUT SPECIAL PROGRAMS ON THE USE OF CAMEMBERT IN FREUDIAN PSYCHOLOGY WERE FASCINATING AS WAS THE BRILLIANT HUGELY SUCCESSFUL MOVIE PROV ALONE MISS THE BERLIN WALL NO NEED TO THANKS TO THIS STIMULATING IF A BIT REPETITIVE OFFERING FROM GERMAN TELEVISION MUCH LIKE OUR OWN FISHTANK AND FIREPLACE VIDEOS THIS PROGRAM OFFERS A 24HOURADAY SCAN OF A LARGE WALL SEPARATING EAST AND WEST BERLIN I FOUND THIS MUCH MORE SATISFYING THAN THE HITLER CHANNEL WHICH SHOWS NOTHING BUT OLD LENI REIFENSHTAL FOOTAGE OF NAZI MARCHES AND LATENIGHT REPLAYS OF SHOAH I HAVE NO DOUBT THAT THIS CANADIAN CABLE SHOW WILL FIND A HUGE AMERICAN AUDIENCE IT IS MERELY A COMPILATION OF ALL TV APPEARANCES OF CANADA'S MOST ENDURING TV STAR ALAN THICKE WATCH AS ALAN ENTERTAINS US AS THE HOST OF THICKE OF THE NIGHT AS DAD ON GROWING PAINS OR EVEN AMATEUR VIDEOTAPES OF ALAN WALKING SITTING AND READING IN HIS NATIVE COUNTRY I PERSONALLY CAN'T WAIT FOR THIS ONE OTHER FOREIGN TV SERIES MAY NOT BE WORTH THEIR OWN CHANNELS BUT MUST CERTAINLY FIND THEMSELVES A HOME ON AMERICAN TV INCLUDING THE CRYING GAME THIS IRISH OFFERING CANNOT BE DISCUSSED IN GREAT DETAIL HERE EXCEPT TO REPORT THAT THE JAYE DAVIDSON CHARACTER FROM THE HIT MOVIE WILL IN EACH EPISODE SURPRISE A DIFFERENT MAN WITH HER UNEXPECTED SECRET THIS IS AN EXTREMELY POPULAR OFFERING IN IRELAND WHERE IT IS THE LOCAL EQUIVALENT OF OUR OWN HIT SERIES CANDID CAMERA THE HAITIAN LOVE BOAT THIS DAILY SERIES IS ONE OF THE MOST ENDURING CARIBBEAN TV CONCEPTS JOIN WITH CAP'N DOC DUVALIER AS HE GREETS POOR REFUGEES ON THEIR WAY TO AMERICA FOR A VACATION CRUISE MUCH HILARITY ENSUES THE UNTOUCHABLES THIS INDIAN DRAMA FOLLOWS A GROUP OF DETECTIVES WHO GO UNDERCOVER AS LOWCASTE INDIANS TO SOLVE UNDERWORLD CRIME IN CALCUTTA A STIRRING COMPELLING DRAMA IN THE TRADITION OF HILL STREET BLUES AND MAMA'S FAMILY THINK YOU'VE SEEN THIS ONE BEFORE THINK AGAIN THIS IS THE REAL STORY FOCUSED ON THE STUDENTS WHO ACTUALLY ATTEND BEVERLY HILLS HIGH IRANIANS WATCH AS BRANDON AND DYLAN TAKE A BACK SEAT TO FAROUZ AND FAROUK THE TWO COOLEST CATS IN TOWN THEY DRIVE TO SCHOOL IN ROLLSROYCE LIMOS DATE 1000ANIGHT HOOKERS AND EAT BELUGA IN THE VIP SECTION OF THE LUNCHROOM FAROUK ISN'T VERY FOND OF SCHOOL HE GOES THROUGH HIS 10000AWEEK ALLOWANCE IN TWO DAYS MAYBE THREE LIKE DYLAN HIS AMERICAN COUNTERPART FAROUK ALSO FALLS IN LOVE WITH BRENDA WALSH BUT IN ONE STARTLING DIFFERENCE BRENDA'S PARENTS AGREE TO LET HER MARRY FAROUK WHEN HE OFFERS THEM THE KEYS TO A BRAND NEW MERCEDES SPORTS CAR MR BLUM IS A WRITER BASED IN NEW YORK CITY 9303260011 930326 REVIEW & OUTLOOK EDITORIAL ASIDES THE KRUEGER FACTOR GEORGE MITCHELL'S DEMOCRATICCONTROLLED SENATE WHOOPED THROUGH BILL CLINTON'S 15 TRILLION WE'LLFILLINTHEBLANKSLATER BUDGET WITH ONLY TWO DEMOCRATS VOTING AGAINST IT RICHARD SHELBY OF ALABAMA HAD LITTLE TO LOSE SINCE THE WHITE HOUSE HAD ALREADY PISTOLWHIPPED HIM A LA THE DRUG INDUSTRY FOR PUBLICLY VOICING A FEW OBJECTIONS TO THE PLAN WEEKS BACK BUT WHAT ABOUT EASYGOING BOB KRUEGER OF TEXAS WELL IT TURNS OUT THAT SENATOR KRUEGER HAS TO FACE TEXAS'S VOTERS AND A REPUBLICAN CHALLENGER IN A SPECIAL ELECTION THIS MAY WE'D SAY THAT MAKES MR KRUEGER'S VOTE AGAINST THE BUDGET A PRETTY GOOD INDICATOR OF THE DIRECTION OF CURRENT PUBLIC SENTIMENT ON THE CLINTON ECONOMIC PLAN 9303260010 930326 CORRECTIONS & AMPLIFICATIONS PAINEWEBBER GROUP INC LAST MONTH AGREED TO A SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION THAT BANNED FOUR OF ITS BRANCH OFFICES FROM OPENING ANY NEW ACCOUNTS FOR ONE MONTH EFFECTIVE MARCH 1 AN ARTICLE TUESDAY FAILED TO INDICATE THE BAN WAS ONLY FOR A MONTH 9303260009 930326 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED MARCH 19 ACCOUNTED FOR 229 OR AN AVERAGE 566 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 456 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 38 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 466 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 417 OF PROGRAM TRADING REFLECTED FIRM'S TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 271 WAS FOR CUSTOMERS AN ADDITIONAL 312 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS UBS SECURITIES AND SUSQUEHANNA DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY NOMURA SECURITIES AND MERRILL LYNCH DID ALL OR MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9303260008 930326 DIVIDEND NEWS CAMPBELL SOUP CO CAMPBELL SOUP CO A CAMDEN NJ MAKER OF SOUPS AND PROCESSED FOODS INCREASED ITS QUARTERLY DIVIDEND 14 TO 25 CENTS A SHARE FROM 22 CENTS PAYABLE APRIL 30 TO SHARES OF RECORD APRIL 8 DAVID W JOHNSON PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE DIVIDEND INCREASE REFLECTS HIGHER PROFITABILITY IN THE PAST TWO YEARS HE SAID THE INCREASE WAS THE FOURTH IN TWO YEARS 9303260007 930326 TECHNOLOGY BRIEF CEPHALON INC ORPHAN DRUG STATUS IS WON FOR TREATMENT OF NARCOLEPSY CEPHALON INC WEST CHESTER PA SAID IT RECEIVED ORPHAN DRUG STATUS FROM THE FOOD AND DRUG ADMINISTRATION FOR ITS MODAFINIL DRUG USED TO TREAT NARCOLEPSY CEPHALON SAID EUROPEAN STUDIES HAVE DEMONSTRATED THAT MODAFINIL SIGNIFICANTLY REDUCED DAYTIME SLEEP ATTACKS AND DROWSINESS WHILE SHOWING NO SIGNIFICANT ADVERSE SIDE EFFECTS THE COMPANY SAID IT IS DEVELOPING THE DRUG AND EXPECTS TO FILE AN INVESTIGATIONAL NEW DRUG APPLICATION WITH THE FDA LATER THIS YEAR 9303260006 930326 CAMBRIDGE NEUROSCIENCE REPORTS CLONING OF GENE CAMBRIDGE MASS CAMBRIDGE NEUROSCIENCE INC COLLABORATING WITH TWO ACADEMIC RESEARCH GROUPS SAID IT IDENTIFIED AND CLONED THE GENE FOR A FAMILY OF PROTEINS THAT STIMULATE PERIPHERAL NERVOUS SYSTEM GROWTH DURING EMBRYONIC DEVELOPMENT THE PERIPHERAL NERVES CONNECT THE SPINAL CORD TO MUSCLES AND SENSORY ORGANS THE COMPANY SAID CAMBRIDGE NEUROSCIENCE'S STUDY WAS REPORTED IN A RECENT ISSUE OF THE JOURNAL NATURE THE COMPANY SAID THAT WITH THE AVAILABILITY OF THE CLONED GENE WE CAN ENVISION A THERAPEUTIC APPROACH THAT RECREATES THE CRITICAL STEPS OF EMBRYONIC DEVELOPMENT TO REBUILD THE NERVOUS SYSTEM FOLLOWING INJURY OR DISEASE CAMBRIDGE NEUROSCIENCE IS A PHARMACEUTICAL CONCERN WITH A FOCUS ON NERVE CELL SURVIVAL 9303260005 930326 POLITICS & POLICY HILLARY RODHAM CLINTON IS WALKING A FINE LINE IN CORRIDORS OF POWER LONG DOMINATED BY MEN BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STRIDING ACROSS THE CAPITOL'S STATUARY HALL HILLARY RODHAM CLINTON IS THE VERY IMAGE OF THE MODERN WOMAN CHALLENGING A CENTURIESOLD INSTITUTION LONG DOMINATED BY MEN THE BLACKANDWHITE CHECKERED FLOOR UNDER HER FEET IS A CHESSBOARD OF SORTS AND SHE HAS STEPPED INTO A WORLD WHOSE RULES AND CONVENTIONS CAN BEDEVIL EVEN SOMEONE AS TALENTED AS HERSELF SHE ERRS BY GREETING SENATE REPUBLICAN LEADER ROBERT DOLE WITH THE TOOFAMILIAR BOB AND ENDURES A REBUKE FROM REP FORTNEY PETE STARK FOR INSISTING BOTH ON DICTATING THE OUTLINES FOR HEALTHCARE REFORM AND WRITING A DETAILED BILL MY MOTHER TAUGHT ME IF I CUT THE CAKE MY BROTHER GOT TO PICK THE FIRST PIECE SAYS THE CALIFORNIA DEMOCRAT CHAIRMAN OF THE HOUSE WAYS AND MEANS HEALTH PANEL AN EVERYDAY HOUSE STAFFER TWO DECADES AGO MRS CLINTON EDUCATED AT WELLESLEY AND YALE HAS RETURNED TO THE CAPITOL AS A CABINETLEVEL MINISTER WHO MUST WALK A FINE LINE BETWEEN POWER AND FAMILIARITY LAWMAKERS SAY THAT IN MEETINGS SHE SOMETIMES REFERS TO THE PRESIDENT AS BILL BUT ADD THAT SHE HAS MADE CLEAR IN NO UNCERTAIN TERMS THAT SHE ISN'T TO BE TREATED AS A QUEEN OR BLUSHING MATRON BUT AS A PEER WHEN REP MEL REYNOLDS OF ILLINOIS SUGGESTED DOUBLING THE FEDERAL EXCISE ON GUN SALES TO HELP PAY THE COST OF EXPANDED HEALTH CARE MRS CLINTON FOLLOWED UP BY COMING TO HIS OFFICE THE NEXT DAY FOR A FACETOFACE MEETING THE CONGRESSMAN A LOWLY FRESHMAN ON THE WAYS AND MEANS COMMITTEE WAS ECSTATIC CHAIRMAN DAN ROSTENKOWSKI WAS APPRECIATIVE THERE'S NO PRETENTIOUSNESS THE GRUFF CHAIRMAN SAYS OF THE UPPERMIDDLECLASS DAUGHTER OF THE SUBURBS OUTSIDE HIS OWN MORE ETHNIC CHICAGO IT'S UNUSUAL IF YOU THINK ABOUT IT CALIFORNIA DEMOCRATIC REP HENRY WAXMAN A MAJOR BROKER ON HEALTH LEGISLATION SAYS OF HER ROLE BUT ONCE YOU DEAL WITH HER YOU REALIZE SHE'S A CAPABLE WOMAN DEALING WITH AN ISSUE THAT'S FUNDAMENTAL TO THE SUCCESS OF THE PRESIDENCY MRS CLINTON'S ROLE IS NOT JUST ABOUT WOMEN OR COMPETING WITH MEN SAYS CALIFORNIA DEMOCRATIC SEN BARBARA BOXER IT'S ABOUT PARTNERSHIPS YET THE FIRST LADY CAN'T ESCAPE ANOTHER OLDER AND OFTEN UNEASY PARTNERSHIP BETWEEN CONGRESS AND THE EXECUTIVE BRANCH AS THE PRESIDENT'S WIFE MRS CLINTON SYMBOLIZES THE MOST PERSONAL EXTENSION OF HER HUSBAND'S POWER YET SHE HAS BEEN NEITHER ELECTED NOR CONFIRMED AND IS IMMUNE TO BEING FIRED MOREOVER SHE CAN'T PROMISE TO COME BACK TO TESTIFY ONCE THE HEALTH PLAN IS COMPLETE WE WILL CROSS THAT BRIDGE WHEN WE GET THERE SAYS PRESS SECRETARY LISA CAPUTO WHATEVER PLAN EMERGES WILL AFFECT NOT ONLY THE PRESIDENT BUT ALL DEMOCRATS IT'S TOUGHER THAN THE ECONOMIC PLAN SAYS REP PATRICIA SCHROEDER OF COLORADO WHO LIKENS MRS CLINTON TO A MODERN FAY WRAY STRUGGLING WITH THE KING KONG OF VESTED INTERESTS THE MEDICAL AND HEALTHCARE INDUSTRY MORE SUBTLE IS THE STRUGGLE BETWEEN MRS CLINTON'S LIBERAL INSTINCTS AND HER HUSBAND'S OFTEN VAGUE CAMPAIGN PROMISES ON HEALTH CARE WHAT MRS CLINTON SHARES WITH HER HUSBAND IS A HANDSON STYLE THAT SERVES THEM WELL IN THEIR WHIRLWIND COURTSHIP OF CONGRESS WHEN SENATE COMMERCE COMMITTEE CHAIRMAN ERNEST HOLLINGS HOSTS A SMALL WASHINGTON DINNER THE PRESIDENT AND HIS WIFE STAY FOR HOURS WITH MRS CLINTON TALKING INTO THE NIGHT ABOUT EDUCATION WITH THE SENATOR'S WIFE PEATSY A FORMER SCHOOL TEACHER EACH OF MRS CLINTON'S ANNOUNCED SOJOURNS TO THE HILL IS ACCOMPANIED BY SEVERAL UNANNOUNCED MEETINGS AND SHE HAS EARNED A REPUTATION FOR WORKING THE PHONES AGGRESSIVELY REPUBLICAN SEN JOHN CHAFEE OF RHODE ISLAND RECALLS HIS SURPRISE AT LIFTING UP THE RECEIVER RECENTLY AND FINDING NOT A WHITE HOUSE OPERATOR BUT MRS CLINTON HERSELF ON THE LINE THEY ARE DOERS SAYS REP BLANCHE LAMBERT A FRESHMAN DEMOCRAT FROM ARKANSAS IT'S A WORKING RELATIONSHIP AND A SENSE THAT WE'RE ALL IN THIS TOGETHER GIVEN THE SELFLOATHING IN TODAY'S CONGRESS MRS CLINTON'S COURTSHIP WHICH HAS BEEN ON HOLD WHILE SHE REMAINS IN LITTLE ROCK ARK WITH HER SERIOUSLY ILL FATHER HAS HAD A SPECIAL IMPACT SHE FLATTERS HOUSE ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL BY RECALLING HIS CONGRESSMAN FATHER SHE SHARES WATERGATE MEMORIES WITH HOUSE JUDICIARY CHAIRMAN JACK BROOKS A CIGARCHOMPING TEXAN WHO REMEMBERS HER AS A YOUNG STAFF ATTORNEY WITH THICK GLASSES AND DESPITE PERSONAL TENSIONS WITH RIVAL BOB KERREY DURING THE PRESIDENTIAL CAMPAIGN MRS CLINTON REACHES OUT TO THE NEBRASKA SENATOR IN HER CONSULTATIONS WITH HER EXPERIENCES WITH THE ARKANSAS LEGISLATURE MRS CLINTON COMES WELLSCHOOLED IN THE VANITIES OF LAWMAKERS IN CONVERSATIONS SHE NODS ATTENTIVELY THE HILLARY NOD AND TAKES NOTES BUT WHAT SETS HER APART MOST IS HER ABILITY TO CITE LAWMAKERS' OWN THOUGHTS AND ACCOMPLISHMENTS BACK TO THEM WHEN SENATE FINANCE CHAIRMAN DANIEL PATRICK MOYNIHAN RAISES THE ISSUE OF MENTAL HEALTH AND THE HOMELESS MRS CLINTON REFERS BACK TO HIS LETTER TO HER ON THE SAME SUBJECT WEEKS BEFORE SHE IS AN INTELLIGENT POLICY DIRECTOR AND A VERY SMOOTH POLITICIAN SAYS REPUBLICAN REP STEVE GUNDERSON OF WISCONSIN SHE RESPONDS TO YOU SO YOU REALLY FEEL YOU HAVE ENGAGED HER INTEREST STILL THE CONVIVIALITY CAN'T MASK THE TENSIONS AS THE MAY DEADLINE FOR THE PRESIDENT'S HEALTH PLAN APPROACHES ALTHOUGH SCORES OF HOUSE AND SENATE STAFFERS ARE PARTICIPATING IN THE TASK FORCE DELIBERATIONS THEY GIVE WIDELY DIFFERENT ACCOUNTS OF THEIR ACTUAL CONTRIBUTIONS AND CONTROL RESTS WITH THOSE OUTSIDE CONGRESS AND HOWEVER SUPPORTIVE SOME CONGRESSIONAL COMMITTEE CHAIRMEN ARE HOLDING BACK TO EMPHASIZE THAT THE BILL WILL BE THE PRESIDENT'S NOT THEIRS WAYS AND MEANS STAFFERS FOR EXAMPLE HAVE KEPT THEIR DISTANCE MR WAXMAN ON ENERGY AND COMMERCE DESCRIBES HIS AIDES INVOLVED IN THE TASK FORCE AS MONITORING THE PROCESS WE'RE TRYING TO HAVE AS MUCH INPUT AS WE CAN AND THEN REVERT TO OUR CONSTITUTIONAL ROLE HE SAYS THIS IS NOT A PARLIAMENTARY FORM OF GOVERNMENT MINDFUL OF THE PRESSURES HOUSE MAJORITY LEADER RICHARD GEPHARDT RECENTLY SUMMONED HIS TOP CHAIRMEN FOR THE FIRST OF WHAT ARE EXPECTED TO BE REGULAR MEETINGS WITH MRS CLINTON'S CHIEF HEALTH STAFFER IRA MAGAZINER IN THE SAME FASHION MR MAGAZINER MET WITH THE SENATE DEMOCRATIC POLICY COMMITTEE THIS WEEK EVENTUALLY SOME PREDICT THE FASCINATION WITH THE FIRST LADY'S INVOLVEMENT IN POLICY MATTERS WILL FADE IT SHOULD REACH A POINT WHERE IT'S NO BIG DEAL SAYS REPUBLICAN SEN NANCY KASSEBAUM OF KANSAS BUT IN THE MEANTIME NO ONE IS ENJOYING MRS CLINTON'S PROMINENCE MORE THAN HEATHER FOLEY THE WIFE OF HOUSE SPEAKER THOMAS FOLEY AND HIS UNPAID AIDE AMID LAST YEAR'S CAPITOL HILL SCANDALS MRS FOLEY WAS A TARGET OF DISGRUNTLED MEMBERS BUT NOW WITH MRS CLINTON AT CENTER STAGE SHE IS ALL BUT FORGOTTEN I LOVE HER MRS FOLEY SAYS OF THE PRESIDENT'S WIFE WHO GREETED HER WITH A HUG AT THE WHITE HOUSE SHE'S FABULOUS 9303260004 930326 WHO'S NEWS MICROGRAFX INC MICROGRAFX INC RICHARDSON TEXAS ROBERT KAMERSCHEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ADVO INC WAS ADDED TO THE BOARD OF THIS COMPUTER SOFTWARE COMPANY INCREASING THE NUMBER OF DIRECTORS TO FOUR 9303260002 930326 NEXT WE'LL FILM WARREN BUFFETT AT THE BIG BOARD IN JOCKEY SHORTS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ELAINE GARZARELLI IS A NONONSENSE WOMAN WHEN IT COMES TO THE STOCK MARKET BUT CAN SHE SELL PANTYHOSE MS GARZARELLI GAINED FAME BY PULLING HER CLIENTS OUT OF STOCKS IN ADVANCE OF THE 1987 MARKET CRASH SHE HAS SINCE MADE SEVERAL OTHER BOLD AND CORRECT MARKET CALLS AND LAST WEEK CAME ANOTHER DARING MOVE MS GARZARELLI IS STARRING IN A TELEVISION COMMERCIAL FOR NO NONSENSE WITH TRIPLE RUNGUARDS WE'RE FEATURING WOMEN WE THINK ARE HOTSHOTS IN THEIR FIELDS SAYS GEORGE LOIS HEAD OF LOIS/USA THE AD AGENCY THAT MADE THE PRIMETIME SPOTS AS PART OF A 10 MILLION NATIONAL CAMPAIGN BY KAYSERROTH CORP A SUBSIDIARY OF COLLINS & AIKMAN GROUP INC SUPPLIER OF THE PANTYHOSE THIS IS THE OPPOSITE OF SEXIST HE ADDS THE ADS SHOW WOMEN IN JOBS RANGING FROM NEUROSURGEON TO AIRPLANE PILOT MR LOIS SAYS HE ASKED SOME MALE FRIENDS ON WALL STREET FOR THE NAME OF A REAL POWERHOUSE WOMAN ON WALL STREET THEY ALL SAID GARZARELLI MS GARZARELLI SAYS HER BOSSES AT SHEARSON LEHMAN BROTHERS DIDN'T OBJECT I SUPPOSE IT'S ALL RIGHT AS LONG AS IT ISN'T SOMETHING LIKE LIQUOR OR TOBACCO OR DYNAMITE SHE SAYS MS GARZARELLI AN ANALYST WHO ALSO MANAGES ABOUT 600 MILLION FOR HER CLIENTS WAS HESITANT AT FIRST IT TOOK ABOUT 20 PHONE CALLS AND A BUNCH OF LETTERS BEFORE MS GARZARELLI AGREED TO MEET WITH THE AGENCY SAYS MR LOIS SHE BECAME CONVINCED THAT THE AD CAMPAIGN WOULD BE TASTEFUL AND CHANGED HER MIND IT FEATURED PROFESSIONAL WOMEN AT WORK FULLY CLOTHED AND WASN'T FILLED WITH LINGERING LEG SHOTS IN THE SPOT MS GARZARELLI WALKS THROUGH AN OFFICE WITH A PORTABLE PHONE TO HER EAR SITS ON A COUCH CROSSES HER KNEES AND SMILES AS AN ANNOUNCER INTONES THE NO NONSENSE WALL STREET WHIZ ELAINE GARZARELLI MS GARZARELLI DONATED THE CASH PAYMENT FOR HER TWO HOURS OF WORK ABOUT 10000 TO A SCHOLARSHIP FUND AT HER ALMA MATER DREXEL UNIVERSITY IN PHILADELPHIA MEANWHILE SHE HAS A SMALL PROBLEM WHAT TO DO WITH ROUGHLY 400 PAIRS OF PANTYHOSE IN ALL DIFFERENT COLORS NOT TO MENTION SOME SOCKS THAT WERE PART OF HER PAYMENT SHE SAYS HER OFFICE ASSISTANTS USE THE BRAND BUT SHE DOESN'T AT LEAST NOT REGULARLY IF YOUR WIFE NEEDS SOME LET ME KNOW SHE SAYS 9303260001 930326 INTERNATIONAL CRISIS UNSETTLES ELITE RUSSIAN SOLDIERS TROOPS SAY THEY'D ANSWER CALL BUT WOULDN'T OPEN FIRE BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW AT ANY MOMENT SOME 300 DZERZHINSKY DIVISION TROOPS ARE READY TO DEPLOY INSTANTLY INTO THE MOSCOW STREETS WITH MORE TO FOLLOW QUICKLY FROM THE DIVISION'S BASE BEHIND A WHITE CEMENT WALL IN THE CAPITAL'S OUTSKIRTS THE TRIP TO RED SQUARE TAKES 20 MINUTES A STRAIGHT SHOT DOWN THE HIGHWAY OF ENTHUSIASTS OVER THE YEARS THIS ELITE UNIT OF INTERIOR DEPARTMENT TROOPS HAS ALWAYS BEEN CALLED OUT TO CONTROL MOSCOW DURING TIMES OF POLITICAL CRISIS A DAY SPENT TALKING WITH SOLDIERS AND OFFICERS AT THEIR BASE FINDS THEM READY TO FOLLOW ORDERS UP TO THE POINT OF FIRING ON FELLOW RUSSIANS THE POLITICAL DEADLOCK BETWEEN PRESIDENT BORIS YELTSIN AND THE RUSSIAN PARLIAMENT CONFUSES AND DISMAYS THEM BUT THEY WORRY EVEN MORE ABOUT SURVIVING ON POOR PAY IN RUSSIA'S RAGING INFLATION THEY COMPLAIN THAT NEITHER SIDE IN THE POLITICAL STRUGGLE IS DOING ANYTHING TO GIVE A SOLDIER A REASON TO FIGHT IN THE END I'LL FOLLOW ORDERS SAYS LT ROMAN ROMANOV BUT IF THEY ASK YOU TO DO SOMETHING AND GIVE YOU NOTHING WELL IMAGINE HOW THAT MAKES US FEEL LT DMITRI CHEKHOVSKY A RUSSIAN FROM GEORGIA PUTS IT MORE DIRECTLY I DON'T BELIEVE ANY OF THEM IF SOMEONE WOULD PAY ME A GOOD SALARY GIVE ME AN APARTMENT AND GET ME A CAR EVEN IF I HAD TO WAIT FOR IT I DON'T CARE WHO IT'S FOR THAT'S WHO I'D SERVE THE DIVISION NAMED AFTER FELIX DZERZHINSKY THE FOUNDER OF THE SOVIET SECRET POLICE FOR DECADES WAS THE UNIT THAT DEFENDED SOVIET COMMUNIST PARTY CENTRAL COMMITTEE LEADERS IT WAS ONE OF THE FIRST UNITS CALLED OUT DURING THE AUGUST 1991 ATTEMPTED COUP AGAINST SOVIET PRESIDENT MIKHAIL GORBACHEV DISCIPLINE USED TO BE REINFORCED BY A COMBINATION OF PRIVILEGE PRESTIGE AND REGULAR DOSES OF POLITICAL EDUCATION NOW THE PRIVILEGES ARE MEAGER THE PRESTIGE OF THE ENTIRE RED ARMY IS TARNISHED AND POLITICAL LECTURES ARE A THING OF THE PAST NO ONE KNOWS WHAT TO SAY AT A POLITICAL MEETING THE OFFICERS TALK WITH THE SOLDIERS AND THEIR ADVICE IS ALL CONSTRUCTIVE LIKE WE SHOULD SUPPORT THE PEOPLE SAYS IGOR BORISOVICH A 19YEAROLD SOLDIER FROM THE RYAZAN DISTRICT WHO DECLINED TO GIVE HIS LAST NAME SO WE'LL GO OUT TO KEEP ORDER BUT OF COURSE WE WON'T SHOOT WE'RE PEOPLE JUST LIKE EVERYONE ELSE AREN'T WE AND WE'RE ONLY SOLDIERS HERE FOR A LITTLE WHILE I'LL PROBABLY GO BACK TO MY VILLAGE THE MINISTERS OF DEFENSE THE INTERIOR AND THE KGB ALL SIGNED A STATEMENT OF SUPPORT FOR PRESIDENT YELTSIN LAST WEEKEND AND THEN WERE NEUTRAL IN THEIR SPEECHES TO PARLIAMENT THE MILITARY THEY INSISTED WOULDN'T BE USED FOR POLITICAL PURPOSES THE INDEPENDENT NEWSPAPER ARMY ROSSII FOUND THAT 86 OF OFFICERS POLLED RECENTLY SUPPORT MR YELTSIN IF THE CONGRESS OF PEOPLE'S DEPUTIES WHICH BEGINS MEETING TODAY TRIES TO REMOVE DEFENSE MINISTER PAVEL GRACHEV AS PART OF A GOVERNMENT SHAKEUP THE OFFICERS WILL RISE TO DEFEND THEIR MINISTER AND THEIR SUPREME COMMANDER YELTSIN THE NEWSPAPER'S EDITOR COL ALEXANDER ZHILIN TOLD REPORTERS YESTERDAY YOUNGER DZERZHINSKY DIVISION SOLDIERS SAY THEY DISCUSS THE POLITICAL SITUATION AMONG THEMSELVES AND THAT OPINIONS ARE AS HOT ON ALL SIDES BEHIND THE BASE'S WALLS AS IN THE STREETS TWO DOZEN RUSSIAN SPECIAL FORCES MEMBERS ARE PRACTICING HANDTOHAND COMBAT IN A SMALL SPORTS HALL THEY QUICKLY DROP THEIR EXERCISES TO CROWD AROUND AND ANSWER QUESTIONS ABOUT WHOSE ORDERS THEY WOULD FOLLOW IF BOTH SIDES IN THE POLITICAL STRUGGLE CLAIMED THE RIGHT TO LEAD THE NATION YELTSIN IT WOULD HAVE TO BE YELTSIN BECAUSE HE WOULD STILL BE THE PRESIDENT SAYS ONE NOT IF HE'S KICKED OUT SAYS ANOTHER IT'S UP TO THE COMMANDER WE DON'T HAVE TO THINK WE JUST HAVE TO WORK SAYS A THIRD WOULD THEY FIRE ON MUSCOVITES TO PROTECT THEIR LEADER IF IT CAME TO THAT THE UNANIMOUS ANSWER IS A RESOUNDING NO CONDITIONS AT THE DZERZHINSKY DIVISION'S BASE AREN'T AS BAD AS AT BASES ELSEWHERE THESE SOLDIERS HARDLY EVEN COMPLAIN ABOUT THE FOOD IN ORDINARY DIVISIONS HOUSING FOOD AND OTHER CONDITIONS CAN BE INADEQUATE THE WORST EXAMPLE CAME AT A REMOTE PACIFIC FLEET NAVY BASE LAST MONTH WHEN FOUR CONSCRIPTS DIED AND DOZENS MORE WERE ADMITTED TO THE HOSPITAL WITH STOMACH INFECTIONS CAUSED BY MALNUTRITION THE COMMANDER OF THE PACIFIC FLEET ADM GENNADY KHVATOV WAS DISMISSED THIS MONTH FOR WHAT THE DEFENSE MINISTER CALLED THIS OUTANDOUT DISGRACE STILL DZERZHINSKY OFFICERS SAY THAT THE MAIN SOURCE OF CONCERN ISN'T THE POLITICAL SITUATION IT IS HOW TO SURVIVE 25 MONTHLY INFLATION LT SERGEI KHOLOSHEVSKY SAYS HE MAKES ABOUT 30 A MONTH THE SPECIAL FORCES TROOPS WORKING OUT IN THE SPORTS HALL MAKE 139 PER MONTH A LOT OF THE SPACE IN OUR MINDS IS TAKEN UP WITH MONEY SAYS LT KHOLOSHEVSKY THE EROSION OF DISCIPLINE BECAUSE OF THE FINANCIAL PRESSURES OF MILITARY SERVICE WORRIES SOME OF THE OFFICERS LT CHEKHOVSKY SAYS THAT MOST OF HIS NEW RECRUITS ARE FRESH OFF THE STREETS WHERE THEY COULD MAKE MORE THAN THEIR MONTHLY ARMY SALARY DAILY SELLING SOUVENIRS AND TSHIRTS TO TOURISTS THEY COME HERE MAKING MORE THAN I DO AND THEN I HAVE TO COMMAND THEM HE SAYS SHAKING HIS HEAD THEY HAVE THEIR UNIFORMS AND THEIR EPAULETS BUT IT'S FRIGHTENING TO THINK OF THEM ON THE STREETS WITH WEAPONS THE MILITARY HOPES TO OVERCOME SOME OF THESE PROBLEMS EVENTUALLY BY INCREASING VOLUNTARY SERVICE BUT FOR NOW OFFICERS AT DZERZHINSKY ARE COPING WITH RECRUITS WHO ARE ONLY TOO AWARE OF THE FALLEN DIGNITY OF THE SERVICE THE RUSSIAN WORD FOR CONSCRIPTION USED TO BE ONE WHICH IMPLIED AN INVITATION ALTHOUGH SERVICE WAS MANDATORY EXPLAINS ONE OFFICER NOW IT IS A WORD WHICH IMPLIES FORCIBLY DRAGGING PEOPLE INTO THE RANKS STILL IF THE EMERGENCY PHONE FROM THE KREMLIN RINGS THE COMMANDERS OF THE DZERZHINSKY DIVISION ARE COUNTING ON THEIR MEN TO OBEY ORDERS THE MAIN THING IS WE WANT ONE OR THE OTHER THE PRESIDENT OR THE PARLIAMENT TO TAKE CHARGE SAYS IGOR THE SOLDIER FROM RYAZAN IT DOESN'T MATTER WHICH BUT WE NEED SOMEONE IN CHARGE 9303260166 930223 PERPETUAL TEA TIME MAY COME TO AN END FOR TOP US TASTER BUDGET AX THREATENS TO LEAVE A REFINED SIPPER JOBLESS THE TEA LEAVES ARE SILENT BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ROBERT DICK TAKES TEA EVERY DAY AT WORK HE SNIFFS THE AROMA OF A FRESHBREWED CUP SIPS A SPOONFUL INTO HIS MOUTH AND SWISHES IT ABOUT THOUGHTFULLY THEN HE SPITS A PALE BROWN SPURT OF TEA SPATTERS INTO A BIG SPITTOON ON WHEELS MR DICK HAS BEEN DOING THIS SIP SWISH SPIT FOR 46 YEARS FROM AS MANY AS 300 CUPS OF TEA A DAY HE SELDOM IF EVER OVERSHOOTS THE SPITTOON THE 78YEAROLD MR DICK IS THE GOVERNMENT'S NO 1 TEA TASTER AND ONE OF TEA'S GREAT CONNOISSEURS CAPABLE OF IDENTIFYING HUNDREDS OF DIFFERENT TEAS FROM THROUGHOUT THE TROPICS AND SUBTROPICS OOLONG TEA OR BLACK TEA DARJEELINGS OR ASSAMS HEAVENLY BREWS OR VILE BLENDS ALL ARE IN HIS MENTAL CATALOG SOMETIMES HE CAN EVEN NAME THE GARDEN FROM WHICH A TEA COMES ONE GARDEN I REMEMBER IN PARTICULAR IS IN EXTREME EASTERN ASSAM HE SAYS REFERRING TO THE INDIAN PROVINCE THE TEA SMELLS JUST LIKE CINNAMON I USED TO BE ABLE TO DISTINGUISH A LOT MORE BUT I DON'T THINK MY SMELLER IS AS GOOD AS IT ONCE WAS MR DICK A FOOD AND DRUG ADMINISTRATION EMPLOYEE IS DEVOTED TO UPHOLDING A REGULATORY ANACHRONISM THE TEA IMPORTATION ACT OF 1897 HIS JOB IS MAINLY TO ENSURE THAT IMPORTED TEA IS AT LEAST DECENTTASTING IF NOT WHAT THE ENGLISH WOULD CALL A GOOD CUPPA THOUGH A TEABUSINESS LEGEND REVERED FOR HIS FAIRNESS AND HIS NOSE FOR FOULNESS IN TEA MR DICK IS SOMETHING OF A MARKED MAN AGAIN PRESIDENT CLINTON AS PART OF HIS COST CUTTING IS OUT TO ABOLISH THE US BOARD OF TEA EXPERTS AND WITH IT MR DICK'S TASTING DUTIES PRESIDENTS NIXON AND CARTER ALSO TRIED TO BAG THE TEA BOARD AS ONE OF GOVERNMENT'S MOST FRIVOLOUS ADVISORY PANELS BUT FAILED BECAUSE OF INDUSTRY OPPOSITION IT ISN'T THAT THE SEVENMEMBER BOARD OF WHICH MR DICK IS EXECUTIVE SECRETARY IS A BUDGET BUSTER IT MEETS ONLY ONCE A YEAR TO SET MINIMUM STANDARDS FOR JUDGING THE QUALITY OF TEA SHIPMENTS TOTAL COSTS INCLUDING MR DICK'S 68000 SALARY COME TO 200000 A YEAR A THIRD OF WHICH IS PAID BY TEA IMPORTERS AND PACKERS MR DICK THE FDA'S SECONDOLDEST EMPLOYEE IS ONLY THE THIRD PERSON TO FILL THE 81YEAROLD POST OF SUPERVISORY US TEA EXAMINER HE HAS A PRETTY PAT ROUTINE HE GETS UP BY 4 AM HAS A CUP OF TEA WITH BREAKFAST THEN COMMUTES BY RAIL FROM LONG ISLAND TO THE FDA'S REGIONAL LAB IN BROOKLYN USUALLY ARRIVING BY 7 HIS REALM IS THE TEA EXAMINING ROOM A SEVENTHFLOOR NICHE OF WARMTH AND CONVIVIALITY IN WHAT WAS ONCE A NAVAL CLOTHING SUPPLY DEPOT MR DICK HAS TWO BIG CHROMEPLATED KETTLES STEAMING AWAY ON A HOT PLATE AND HIS ASSISTANT FAITH LIM AN ACCOMPLISHED TASTER AT AGE 44 HAS A LOAD OF TEACUPS CHURNING IN THE DISHWASHER THE ROOM IS SUFFUSED WITH THE FRAGRANCE OF KEEMUN A CHINA BLACK TEA THEY BREW UP FOR THEIR MORNING BREAK SNOW IS SLANTING WET AGAINST THE WINDOWS AS HE PUTTERS ABOUT FUSSING WITH HIS BELOVED AFRICAN VIOLETS AND JADE PLANTS AND HUNTING UP TEAIMPORT DOCUMENTS ONE BOOKCASE IS SO CLUTTERED WITH TINS OF EXOTIC TEAS AND SO OVERGROWN BY A SPLITLEAF PHILODENDRON THAT HE HAS TROUBLE FINDING THINGS TEA TASTING AT THE TEA ROOM THAT IS HOW MR DICK ANSWERS THE PHONE IS HARDLY AFTERNOON TEA AT THE SAVOY THERE'S NO SILVER SERVICE NO TEA TROLLEY NO FRUIT TARTS OR SANDWICH SLIVERS TO TUCK INTO IT'S WORK AND SETTING OUT THE PORCELAIN CUPS AND MUGS ON A WATERSTAINED MAHOGANY TABLE LEAVES THE RUDDYFACED SILVERHAIRED MR DICK WHEEZING A BIT FROM HIS ASTHMA CLEARLY MS LIM ADMIRES THE OLD GENTLEMAN FROM GEORGIA TRIFOCALS HEARING AID BUM KNEE AND ALL HER WIRERIMS SLIP TO THE TIP OF HER NOSE WHEN SHE TAKES OVER FOR HIM WEIGHING TEA ON AN ANTIQUE BALANCE SCALE AND DUMPING IT INTO CUPS THE MORNING'S MAIN TASK DOUBLECHECKING TWO BATCHES OF ARGENTINE BLACK FOR THE FDA'S ONLY OTHER TEA EXAMINER A LESS EXPERIENCED TASTER IN NEW ORLEANS MR DICK FETCHES A BOILING KETTLE OF DISTILLED WATER FILLS A SEMICIRCLE OF FIVEOUNCE CUPS WITH ONE CONTINUOUS POURING AND THEN MOPS UP SOME SPILLAGE THE TEA IS STILL PIPING HOT WHEN HE BEGINS SNIFFING ONE SILVERPLATED SPOONFUL AFTER ANOTHER COMPARING EACH AGAINST A CUP OF STANDARD ARGENTINE BLACK THE NOSE OR BOUQUET HE DECIDES IS DEFINITELY INFERIOR ON SOME CUPS NEXT THE COLOR OF THE TEA INFUSION AND WET LEAVES IS EXAMINED IT'S A REDDISHBROWN HUE BRIGHTER THAN EXPECTED AFTER LETTING THE TEA STEEP FOR FIVE MINUTES MR DICK PULLS UP TO THE TABLE WITH HIS SPITTOON AT ONE KNEE TASTES THE STANDARD TEA AS A BENCHMARK AND GETS DOWN TO BUSINESS FROM EACH CUP HE SIPS WITH A BIG SLURP SPLASHING HIS PALATE TONGUE AND GUMS HE SWISHES THE TEA ABOUT THEN SHOOTS FOR THE SPITTOON SWALLOWING WOULD GIVE HIM A COLOSSAL CASE OF CAFFEINE JITTERS IN LESS THAN A MINUTE HE SLURPS HIS WAY THROUGH 14 CUPS THE FASTER YOU TASTE THEM THE EASIER IT IS TO MAKE UP YOUR MIND HE SAYS YOU TAKE THE AROMA FROM YOUR NOSTRILS THE TASTE FROM YOUR TASTE BUDS AND THE ASTRINGENT FEEL FROM THE SIDES OF YOUR CHEEKS AND COMBINE THEM TO GET AN OVERALL IMPRESSION THE VERDICT THE FIRST THIRD AND FOURTH CUPS HAVE A LOT OF NOTHING IN THEM HE PRONOUNCES THEY'RE LACKING IN BASIC TEA TASTE I THINK IT'S OLD TEA BUT THE OTHER CUPS TASTE AS GOOD AS OR BETTER THAN THE STANDARD AND MR DICK DECIDES AGAINST REJECTING THE SHIPMENTS ALL BUT A SMIDGEN OF THE TEA CONSUMED IN THE US IS FOREIGN TEA 94 OF WHICH IS BLACK TEA FROM ARGENTINA CHINA AND INDONESIA THE FDA REJECTS LESS THAN 1 OF THE 200 MILLION TONS IMPORTED ANNUALLY TYPICALLY REJECTED TEA IS MOLDY OR TAINTED BY ODD ODORS OFTEN PICKED UP IN TRANSIT MR DICK AND MS LIM STILL LAUGH ABOUT THE ARGENTINE TEA THAT WAS SHIPPED WITH COW HIDES IT WAS SO BAD WE ONLY HAD TO TASTE ONE CUP HE SAYS OVER THE YEARS MR DICK HAS CAUGHT ALL SORTS OF ILLEGAL ADDITIVES AND ADULTERANTS INCLUDING UNSAFE DYES IN THAI TEA FLOOR SWEEPINGS IN FORMOSA TEA AND TALCUM POWDER IN JAPANESE GREEN TEA TO HIS DISAPPOINTMENT WHEN IT COMES TO TEA THE US IS A NATION OF COMMONERS AT LEAST 75 OF THE TEA WE DRINK IS ICED MOST OF IT MADE WITH TEA BAGS OR MIXES LOOSE TEA BREWED IN A POT OR INFUSER THE OLDFASHIONED WAY ACCOUNTS FOR ONLY 13 OF CONSUMPTION HOT OR COLD MR DICK AND OTHER EXPERTS CONTEND THAT LARGELY BECAUSE OF OUR THIRST FOR ICE TEA QUALITY STANDARDS HAVE BEEN SLIPPING FOR YEARS WE LET A LOT OF TEA GO BY THAT AN ENGLISHMAN WOULDN'T DRINK HE SAYS BUT AMERICANS WILL DRINK ALMOST ANY GRADE OF TEA AS LONG AS IT'S WET AND COLD WHY THE COLD DULLS THE TASTE BUDS AT TIMES MR DICK HAS BEEN AT ODDS WITH TEABOARD MEMBERS WHO ARE INDUSTRY EXECUTIVES HIS INCLINATION IS TO RAISE THE QUALITY STANDARDS BUT THE BOARD HE SAYS DOESN'T WANT TO RISK HAVING TEAS DESTINED FOR THE ICETEA MARKET REJECTED BOARD MEMBERS PRAISE MR DICK AS AN UNBUREAUCRATIC BUREAUCRAT HE DOESN'T KEEP IMPORTERS WAITING WEEKS FOR FDA CLEARANCE SAYS CARLA ANN HOLT A REDCO FOODS INC TEA TASTER IN LITTLE FALLS NY IN MY EXPERIENCE HE EVALUATES TEA THE SAME DAY HE RECEIVES IT NOW THE INDUSTRY IS GEARING UP TO SAVE THE TEA BOARD AND MR DICK'S JOB FROM THE PRESIDENTIAL AX MR CLINTON WILL HAVE TO PERSUADE CONGRESS TO REPEAL THE 96YEAROLD LAW SOMETHING HIS PREDECESSORS COULDN'T DO EVEN IF HE DOES THE FDA STILL WILL HAVE TO INSPECT TEA FOR CONTAMINANTS AS FOR BOB DICK HE WOULD RATHER KEEP ON ENFORCING OUR FIRST CONSUMER PROTECTION LAW BUT HE WOULDN'T MIND RETIRING I'D MOVE TO NORTH CAROLINA AND DO SOME GARDENING I MIGHT EVEN TRY GROWING SOME OF MY OWN TEA SEE RELATED LETTER LETTERS TO THE EDITOR QUALITY TIME WSJ MARCH 25 1993 9302230151 9303250174 930325 WHO'S NEWS MCGRAWHILL INC MCGRAWHILL INC NEW YORK KARL A SPANGENBERG 46 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT OF MCGRAWHILL'S CONSTRUCTION INFORMATION GROUP HE HAD BEEN SENIOR VICE PRESIDENT OF ADVERTISING FOR BUSINESS WEEK MAGAZINE A PUBLICATION OF THE PUBLISHING AND INFORMATION SERVICES COMPANY 9303250173 930325 WHO'S NEWS DAMES & MOORE INC DAMES & MOORE INC LOS ANGELES NORMAN A BARKELEY AND MICHAEL R PEEVEY WERE ELECTED DIRECTORS OF THIS ENVIRONMENTAL CONSULTING AND ENGINEERING SERVICES CONCERN INCREASING THE BOARD TO 12 MR BARKELEY 63 YEARS OLD IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DUCOMMUN INC MR PEEVEY 55 RECENTLY RETIRED AS PRESIDENT OF SCECORP 9303250172 930325 WHO'S NEWS RP SCHERER CORP RP SCHERER CORP TROY MICH JOSEPH A CLARK III 37 YEARS OLD FORMERLY DIRECTOR OF SALES/MARKETING PHARMACEUTICALS WAS NAMED PRESIDENT OF THIS SOFTGELATIN CAPSULE MAKER'S PHARMAPHIL SUBSIDIARY HE SUCCEEDS THOMAS J ALEXANDRIS 48 WHO RECENTLY LEFT THE COMPANY FOR OTHER PURSUITS 9303250171 930325 WHO'S NEWS NEW LINE CINEMA CORP NEW LINE CINEMA CORP LOS ANGELES MITCHELL GOLDMAN 45 YEARS OLD SENIOR VICE PRESIDENT FOR THEATRICAL MARKETING AND DISTRIBUTION WAS GIVEN ADDITIONAL DUTIES AS PRESIDENT OF THE THEATRICAL MARKETING UNIT HE CONTINUES AS PRESIDENT FOR THEATRICAL DISTRIBUTION FOR THIS MOVIE COMPANY 9303250170 930325 WHO'S NEWS STRIDE RITE CORP STRIDE RITE CORP CAMBRIDGE MASS THIS SHOE CONCERN ELECTED TWO DIRECTORS EXPANDING ITS BOARD TO EIGHT MEMBERS W PAUL TIPPETT 61 YEARS OLD IS CHAIRMAN OF THE COUNCIL OF GREAT LAKES INDUSTRIES AN ALLIANCE OF US AND CANADIAN BUSINESSES ROBERT SEELERT 50 IS PRESIDENT AND CHIEF EXECUTIVE OF KAYSERROTH CORP A GREENSBORO NC LEGWEAR CONCERN ONE OF THE APPOINTMENTS FILLS A VACANCY CREATED BY THE RETIREMENT OF JOHN PHELAN EARLIER THIS YEAR 9303250169 930325 WHO'S NEWS MACROCHEM CORP MACROCHEM CORP LEXINGTON MASS WILLARD M BRIGHT WAS ELECTED A DIRECTOR DR BRIGHT SUCCEEDS GEORGE STEVENS 65 YEARS OLD WHO RESIGNED TWO MONTHS AGO TO PURSUE OTHER INTERESTS DR BRIGHT 78 IS CHAIRMAN OF ZOLL MEDICAL CORP A MEDICAL SUPPLY COMPANY MACROCHEM IS A PHARMACEUTICAL CONCERN 9303250168 930325 WHO'S NEWS DURAKON INDUSTRIES INC DURAKON INDUSTRIES INC LAPEER MICH PHILLIP W FISHER 42 YEARS OLD FORMERLY CORPORATE SECRETARY WAS NAMED CHAIRMAN OF THIS PRODUCER OF PICKUPTRUCK BEDLINERS HE SUCCEEDS DAVID LARO 51 WHO RESIGNED IN OCTOBER FOR A POSITION AT THE US TAX COURT 9303250167 930325 WHO'S NEWS ARMCO INC ARMCO INC PARSIPPANY NJ STEPHEN W GILBY WAS NAMED MANAGING DIRECTOR OF RESEARCH AND TECHNOLOGY FOR THIS MAKER OF STAINLESS AND ELECTRICAL STEELS DR GILBY 53 YEARS OLD FORMERLY SERVED AS CORPORATE DIRECTOR OF PROCESS RESEARCH AND DEVELOPMENT HE SUCCEEDS DAVID L CHALK 53 WHO RETIRED LAST MONTH 9303250166 930325 WHO'S NEWS TRITON ENERGY CORP TRITON ENERGY CORP DALLAS NG DE'ATH WAS NAMED VICE PRESIDENT EXPLORATION A NEW POST AT THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY HE WILL BE RESPONSIBLE FOR EVALUATING NEW INTERNATIONAL EXPLORATION OPPORTUNITIES HE RECENTLY COMPLETED A 21YEAR GEOLOGY CAREER WITH BRITISH PETROLEUM PLC 9303250165 930325 INTERNATIONAL ANOTHER FIAT EXECUTIVE IS IMPLICATED IN ITALY IN CORRUPTION SCANDAL SPECIAL TO THE WALL STREET JOURNAL MILAN A MILAN PROSECUTOR HAS ISSUED AN ARREST WARRANT FOR RICCARDO RUGGERI CHIEF EXECUTIVE OFFICER OF NEW HOLLAND NV THE AGRICULTURAL AND EARTHMOVING EQUIPMENT MAKER OF FIAT SPA AN ITALIAN NEWS AGENCY REPORTED THE ARREST WARRANT WAS ISSUED IN CONNECTION WITH THE ONGOING INVESTIGATION INTO THE WIDESPREAD POLITICAL CORRUPTION SCANDAL IN ITALY MR RUGGERI WAS ALLEGEDLY IMPLICATED IN CORRUPTION PRACTICES INVOLVING IVECO NV FIAT'S TRUCK MANUFACTURING SUBSIDIARY MR RUGGERI 59 YEARS OLD FORMERLY WAS EXECUTIVE VICE PRESIDENT OF IVECO THE ARREST HADN'T BEEN MADE BECAUSE MR RUGGERI HAS BEEN IN THE UK WHERE NEW HOLLAND IS BASED A SPOKESMAN FOR FIAT SAID HE COULDN'T IMMEDIATELY CONFIRM THE REPORT MR RUGGERI IS THE FOURTH EXECUTIVE OF FIAT TO BE IMPLICATED IN THE CORRUPTION SCANDAL FRANCESCO PAOLO MATTIOLI CHIEF FINANCIAL OFFICER OF FIAT ANTONIO MOSCONI MANAGING DIRECTOR OF TORO ASSICURAZIONI SPA FIAT'S INSURANCE UNIT AND ENZO PAPI FORMERLY MANAGING DIRECTOR OF THE GROUP'S CONSTRUCTION SUBSIDIARY COGEFARIMPRESIT SPA HAVE BEEN ARRESTED ON CORRUPTION CHARGES MESSRS MATTIOLI AND MOSCONI REMAIN IN JAIL FIAT IS ITALY'S LARGEST PRIVATESECTOR INDUSTRIAL GROUP 9303250164 930325 ECONOMY FEBRUARY ORDERS OF DURABLE GOODS INCREASED 22 BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEW ORDERS FOR DURABLE GOODS ROSE 22 IN FEBRUARY THE COMMERCE DEPARTMENT SAID RESUMING THE LONGTERM IMPROVEMENT BEING SEEN BY MANUFACTURERS THE INCREASE TO 135 BILLION FOLLOWED A 23 DROP IN JANUARY BUT SOME ECONOMISTS' ENTHUSIASM ABOUT THE INCREASE WAS TEMPERED BY THE FACT THAT A LARGE PART OF IT CAME FROM TRANSPORTATION ORDERS WHICH VARY WIDELY FROM MONTH TO MONTH THESE ORDERS ROSE 109 LAST MONTH MORE THAN OFFSETTING A 245 PLUNGE IN DEFENSE INDUSTRY ORDERS ANOTHER VOLATILE FIGURE IN THE SHORT TERM IT IS NOT VERY IMPRESSIVE SAID MICHAEL MORAN CHIEF ECONOMIST AT DAIWA SECURITIES AMERICA INC OF THE FEBRUARY INCREASE IT IS DUE ALMOST ENTIRELY TO AIRCRAFT WHICH IS VOLATILE IT IS A WEAK INDUSTRY AND GENERALLY YOU WILL NOT SEE SUSTAINED INCREASES OVER THE LONG TERM WHILE MR MORAN REMAINS CAUTIOUS ABOUT THE FUTURE SOME OTHER ECONOMISTS SEE CONTINUED GRADUAL IMPROVEMENT FOR THE COMING MONTHS ONE BRIGHT SPOT IS FEBRUARY'S 22 INCREASE IN ORDERS OF NONDEFENSE CAPITAL GOODS OTHER THAN AIRCRAFT KATHRYN EICKOFF PRESIDENT OF EICKOFF ECONOMICS INC SEES THIS INCREASE AND THE 03 RISE IN UNFILLED ORDERS IN FEBRUARY THE THIRD CONSECUTIVE JUMP AS A PRELUDE TO BETTER THINGS AHEAD MY OUTLOOK FOR THE YEAR IS QUITE GOOD SAID MS EICKOFF WHO BELIEVES THE COUNTRY IS ON THE BRINK OF A PURCHASING CYCLE BECAUSE OF DEPLETED INVENTORIES AND LENGTHENING DELIVERY TIMES CAUSED BY INCREASED DEMAND IT WILL RESULT IN JOB GROWTH BUT IT WILL TAKE A LITTLE TIME TO TAKE HOLD SHE SAID SEPARATELY THE COMMERCE DEPARTMENT REVISED ITS FEBRUARY NUMBERS FOR BUILDING PERMITS TO AN ANNUAL RATE OF 1138000 OR A 36 DECLINE FROM JANUARY ORIGINALLY IT REPORTED A 1144000 RATE OR A 31 DECLINE ALL THE FIGURES ARE ADJUSTED FOR SEASONAL CHANGES HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS 9303250163 930325 INTERNATIONAL TWO GERMAN MEN INDICTED FOR AIDING IRAQI ARMS EFFORT BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT PROSECUTORS ACCUSED TWO GERMAN BUSINESSMEN OF PROVIDING IRAQ WITH MISSILE MATERIALS AND ASSISTING BAGHDAD'S EFFORT TO OBTAIN CENTRIFUGE TECHNOLOGY TO DEVELOP WEAPONSGRADE URANIUM IN A 300PAGE INDICTMENT THE BIELEFELD PROSECUTORS OFFICE CHARGED THE TWO COMANAGERS OF H&H METALFORM GMBH WITH PROVIDING IRAQ WITH 27436 PARTS FOR THE CONSTRUCTION OF SCUDB ROCKETS THEY ALSO ARE CHARGED WITH SUPPLYING MACHINERY TO PRODUCE TACTICAL MISSILES THE TWO MANAGERS WHO WEREN'T IDENTIFIED BY NAME HAVE BEEN HELD IN PROTECTIVE CUSTODY SINCE FEBRUARY AND COULDN'T BE REACHED FOR COMMENT IF FOUND GUILTY THEY FACE UP TO FIVE YEARS IMPRISONMENT FOR VIOLATING GERMAN EXPORT LAWS AND GRAVELY DISTURBING THE FOREIGN RELATIONS OF THE FEDERAL REPUBLIC ACCORDING TO THE INDICTMENT PROSECUTORS SAID THE DELIVERIES WERE VALUED AT 46 MILLION MARKS 282 MILLION AND WERE MADE FROM 1988 THROUGH 1990 THE CHARGES CLOSE AN INVESTIGATION THAT BEGAN IN AUGUST 1990 WHEN AUTHORITIES SAY THEY SEIZED THE COMPANY'S SHIPMENT OF 2284 SCUDB PARTS AT THE FRANKFURT AIRPORT HANSDIRK BUHR A SENIOR PROSECUTOR ALSO ALLEGED THAT THE TWO MANAGERS HELPED PROVIDE IRAQ WITH GASULTRA CENTRIFUGE TECHNOLOGY FOR WEAPONSGRADE URANIUM READING FROM A STATEMENT HE CALLED IT AN INDICATION OF HOW CLOSELY INVOLVED THE TWO WERE WITH THE IRAQI ARMS PROGRAM H&H METALFORM IS ACCUSED OF PROVIDING LIBYA WITH ROCKET COMBUSTION CHAMBERS VALUED AT 49 MILLION MARKS 3 MILLION EVEN AS AUTHORITIES WERE INVESTIGATING ITS OPERATIONS ACCORDING TO MR BUHR THE H&H INQUIRY IS ONLY ONE OF 40 TO 50 INTO GERMAN COMPANIES SUSPECTED OF HAVING EXPORTED TO IRAQ TECHNOLOGY USEFUL IN UPGRADING MISSILE PROGRAMS OR PRODUCING POISON GAS THE BONN GOVERNMENT AGAIN SHARPENED ITS EXPORT LAWS IN JANUARY 1992 AFTER COMING UNDER RISING PRESSURE FROM THE US TO STOP THE FLOW OF ARMS TECHNOLOGY DESPITE THE TIGHTER LAWS SECURITY EXPERTS CLAIM THAT ENFORCEMENT REMAINS LAX THE BIGGEST INTERNATIONAL OUTCRY CAME IN 1989 WHEN GERMANY'S IMHAUSENCHEMIE GMBH CHEMICAL COMPANY WAS DISCOVERED TO HAVE PROVIDED LIBYA WITH TECHNOLOGY FOR ITS POISON GAS PLANT AT RABTA IMHAUSEN'S CHAIRMAN WAS SENTENCED TO FIVE YEARS IN PRISON IN 1990 9303250162 930325 WHO'S NEWS CHOCK FULL O'NUTS CORP CHOCK FULL O'NUTS CORP NEW YORK R SCOTT SCHAFLER 42 YEARS OLD WAS NAMED TO THE 13MEMBER BOARD HE SUCCEEDS RAYMOND HICKEY 41 PREVIOUSLY VICE PRESIDENT FOR MANUFACTURING AT THE COMPANY AND NOW DIRECTOR OF RETAIL MANUFACTURING MR SCHAFLER IS THE PRESIDENT OF CORTEC GROUP INC A NEW YORK INVESTMENT GROUP CHOCK FULL O'NUTS ROASTS AND MARKETS COFFEE UNDER ITS OWN BRAND AND AS PRIVATE LABEL PRODUCTS 9303250161 930325 WHO'S NEWS LOUISIANAPACIFIC CORP LOUISIANAPACIFIC CORP PORTLAND ORE BONNIE F GUITON 51 YEARS OLD WAS ELECTED A DIRECTOR AT THIS WOOD PRODUCTS COMPANY EXPANDING THE BOARD TO NINE MEMBERS MS GUITON IS DEAN OF THE MCINTIRE SCHOOL OF COMMERCE AT THE UNIVERSITY OF VIRGINIA 9303250160 930325 MARKETING & MEDIA FRITOLAY PLANS 100 MILLION PITCH FOR NEW DORITOS BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL PLANO TEXAS FRITOLAY INC SAID IT WILL SPEND 100 MILLION TO MARKET AND PROMOTE DORITOS TORTILLA THINS A POTATOCHIPTHIN TORTILLA CHIP THAT IS BEING LAUNCHED NATIONALLY THIS WEEK FRITOLAY A UNIT OF PEPSICO INC IS ALSO BOLDLY PREDICTING THAT THE NEW PRODUCT WILL RING UP 450 MILLION IN SALES ITS FIRST YEAR BECAUSE OF ITS APPEAL WITH BABY BOOMERS WHO CRAVE LIGHTTASTING SNACKS THE ESTIMATE WHICH WOULD BE MORE THAN 10 OF FRITOLAY'S ANNUAL REVENUE RAISED EYEBROWS IN THE ANALYST COMMUNITY THIS WOULD BE THE SNACKFOOD EQUIVALENT OF FOUR HOME RUNS IN A GAME ONE OF WHICH IS A GRAND SLAM SAID EMANUEL GOLDMAN OF PAINEWEBBER INC SUN CHIPS A MULTIGRAIN SNACK FRITOLAY INTRODUCED IN 1991 WAS CONSIDERED A HIT WITH 100 MILLION IN SALES ITS FIRST YEAR BUT STEVE LIGUORI FRITOLAY'S VICE PRESIDENT FOR BRAND MARKETING INSISTED THAT THE NEW CHIP WOULD BE A MAJOR NEW LEG ON THE DORITOS FRANCHISE THIS IS FOR THE BABY BOOMERS WHO WE WANT TO BRING BACK INTO THE FRANCHISE ANY INJECTION OF NEW LIFE INTO DORITOS WOULD BE WELCOME THE SPICY YELLOW CORN CHIP IS AMONG THE WORLD'S LARGEST SNACK BRANDS WITH TOTAL SALES OF 12 BILLION LAST YEAR ACCORDING TO FRITOLAY BUT SUPERMARKET SALES SAGGED 74 TO 414 MILLION IN THE YEAR ENDED FEB 20 ACCORDING TO NIELSEN MARKETING RESEARCH IN NORTHBROOK ILL MR LIGUORI SAID HE DOESN'T BELIEVE THE NEW CHIP A WHITE CORN TORTILLA CHIP WILL CANNIBALIZE SALES OF THE TRADITIONAL YELLOW CHIP DORITOS TORTILLA THINS WAS TARGETED AGAINST POTATO CHIPS IN TEST MARKETS HE SAYS THIS PRODUCT HAS SOURCED A LOT OF ITS VOLUME FROM COMPETITOR'S POTATO CHIPS IN THE FIRST YEAR ON THE MARKET DORITOS TORTILLA THINS WILL GET THE STAR TREATMENT HALF OF ITS 100 MILLION BUDGET WILL BE SPENT ON A HOLLYWOODSTYLE AD CAMPAIGN WHICH INCLUDES A ONEMINUTE TELEVISION COMMERCIAL THAT WILL AIR DURING THE ACADEMY AWARDS TELECAST ON MONDAY OMNICOM GROUP'S BBDO DORITOS' CREATIVE AD AGENCY PRODUCE THE SPOT TRACYLOCKE INC THE DALLAS OFFICE OF OMNICOM'S DDB NEEDHAM AGENCY IS HANDLING THE REST OF THE AD AND MARKETING CAMPAIGN TO GET THE WORD OUT ABOUT DORITOS TORTILLA THINS FRITOLAY PLANS TO BLANKET THE COUNTRY WITH EXTENSIVE INSTORE SAMPLING AND ADVERTISING FRITOLAY HAS SPENT UNTOLD MILLIONS ON FREESTANDING RACKS ON WHICH TO DISPLAY THE PRODUCT SEPARATELY MR LIGUORI SAYS FRITOLAY HAS ALSO SPENT AT LEAST 20 MILLION ON NEW MACHINERY TO MAKE THE THINNER CHIPS 9303250159 930325 TECHNOLOGY & HEALTH TECHNIQUE MAY ALLOW PHONE COMPANIES TO CONSTRUCT LESS COSTLY TV HIGHWAYS' BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL A NORTH CAROLINA COMPANY SAYS IT HAS DEVELOPED A WAY FOR TELEPHONE COMPANIES TO BUILD INTERACTIVE TELEVISION HIGHWAYS WITH HUNDREDS OF CHANNELS AND LIMITLESS ACCESS TO PROGRAMS AND SERVICES FOR A MUCH LOWER COST THAN SOME HAVE PROJECTED THE DEVELOPMENT IS EXPECTED TO BE ANNOUNCED TODAY DURING CONGRESSIONAL TESTIMONY BY CLOSELY HELD BROADBAND TECHNOLOGIES INC IT COULD GIVE TELEPHONE COMPANIES AMMUNITION IN SEEKING REGULATORY CHANGES THAT WOULD HELP THEM COMPETE WITH CABLETELEVISION OPERATORS IN PROVIDING SOCALLED VIDEOONDEMAND SERVICES IN A RELATED DEVELOPMENT THE FEDERAL COMMUNICATIONS COMMISSION YESTERDAY APPROVED BELL ATLANTIC CORP'S PLANS TO TEST A TECHNOLOGY THAT DELIVERS MOVIES AND OTHER VIDEO SERVICES OVER ORDINARY COPPER TELEPHONE LINES WHILE THE TECHNOLOGY ALLOWS THE TELEPHONE COMPANY TO OFFER VIDEO ON DEMAND IT DOESN'T GIVE PHONE COMPANIES THE ABILITY TO DELIVER MULTIPLE VIDEO CHANNELS INTO HOMES THUS IT IS VIEWED AS A STEP TOWARD FIBEROPTICBASED SYSTEMS SUCH AS BROADBAND'S BOTH CABLE OPERATORS AND TELEPHONE COMPANIES ARE WORKING INTENSELY TO INSTALL THE FIBEROPTIC LINES NEEDED FOR VIDEOONDEMAND SERVICES WHICH COULD ALLOW SUBSCRIBERS TO ORDER TV PROGRAMS MOVIES AND SHOPPING AND BANKING SERVICES AT ANY TIME SOME CRITICS HAVE ESTIMATED IT COULD COST TELEPHONE COMPANIES 1500 PER SUBSCRIBER TO PROVIDE THAT LEVEL OF INTERACTIVITY BUT BROADBAND BASED IN RESEARCH TRIANGLE PARK NC SAYS IT CAN MAKE SUCH SERVICES POSSIBLE FOR A COST OF 430 PER SUBSCRIBER TO A TELEPHONE COMPANY WITHIN A SYSTEM OF ONE MILLION SUBSCRIBERS THIS WOULD BE SUBSTANTIALLY LESS THAN IT WOULD COST A CABLE OPERATOR TO IMPROVE ITS SYSTEM IN THE SAME WAY THE MAIN REASON THE COMPANY SAYS IS THE NEWFOUND ABILITY TO ASSIGN AS FEW AS 24 HOMES TO A SINGLE SWITCH THE DEVICE THAT DIRECTS PROGRAMMING TO INDIVIDUAL HOMES THAT'S LESS EXPENSIVE THAN USING A SINGLE HUGE SWITCH FOR SAY 1000 HOMES THE SYSTEMS WOULD BE AVAILABLE BY LATE 1994 BROADBAND SAID AND WOULD REQUIRE TELEPHONE COMPANIES TO PROVIDE FIBEROPTIC LINES TO EACH GROUP OF EIGHT TO 24 HOMES CABLE TELEVISION LABORATORIES A CABLEFUNDED RESEARCH GROUP TESTIFIED EARLIER THIS WEEK THAT THE CABLE INDUSTRY COULD PROVIDE INTERACTIVE SERVICES NATIONWIDE FOR 1/20TH OF WHAT IT WOULD COST TELEPHONE COMPANIES CABLE LABS OFFICIALS COULDN'T BE REACHED FOR COMMENT YESTERDAY BROADBAND'S TECHNOLOGY IS SIMILAR TO ONE THAT SOME CABLE OPERATORS PLAN TO USE IT WOULD EMPLOY DIGITAL COMPRESSION AND MULTIPLEXING TECHNIQUES TO INCREASE THE CHANNEL CAPACITY OF A CABLE SYSTEM TO GIVE EACH HOME ITS OWN PERSONAL CHANNEL IT'S A LOT LIKE THE TELEPHONE SYSTEM SAID SALIM AL BHATIA BROADBAND'S CHIEF EXECUTIVE OFFICER WHEN YOU PICK UP THE PHONE YOU HAVE DIRECT CONNECTION TO A SWITCH THAT PROVIDES YOU ACCESS TO MILLIONS OF PEOPLE THIS GIVES YOU MILLIONS OF SOURCES OF INFORMATION BELL ATLANTIC SAID YESTERDAY IT PLANS TO DEPLOY THE BROADBAND SYSTEM IN TOMS RIVER NJ WHERE IT ALREADY HAS AN AGREEMENT WITH A NEW COMPANY FUTUREVISION OF AMERICA CORP TO PROVIDE 60 CABLETV CHANNELS USING A LESSADVANCED BROADBAND TECHNOLOGY IN THE TEST INVOLVING COPPER LINES BELL ATLANTIC'S CHESAPEAKE & POTOMAC TELEPHONE CO OF VIRGINIA WILL OFFER VIDEO SERVICES TO THE HOMES OF 400 EMPLOYEES IN NORTHERN VIRGINIA THE FCC SAID THE TEST IS CONSISTENT WITH THE AGENCY'S VISION OF TELEPHONE COMPANIES PROVIDING VIDEO DIALTONE SERVICES UNDER THE COMMISSION'S 1992 VIDEO DIALTONE DECISION TELEPHONE COMPANIES CAN CARRY VIDEO SIGNALS FOR OTHERS BUT ARE LIMITED TO A 5 STAKE IN THE PROGRAMS THEY CARRY 9303250158 930325 EXECUTIVE POWER A FIRST LESSON FOR BILL & HILLARY BY ROBERT L BARTLEY BEFORE CHOOSING A NEW SUPREME COURT JUSTICE PRESIDENT CLINTON SHOULD TAKE A GOOD LOOK AT HIS FIRST CONSTITUTIONAL CONFRONTATION WITH HIS FIRST MAJOR POLICY INITIATIVE HE'S ALREADY SPRUNG A LEGAL TRIPWIRE CALLED SEPARATION OF POWERS THE ADMINISTRATION'S HEALTH CARE TASK FORCE IS ENSNARLED IN ASSOCIATION OF AMERICAN PHYSICIANS AND SURGEONS INC ET AL V HILLARY RODHAM CLINTON ET AL THE ISSUE INVOLVES WHETHER MRS CLINTON'S TASK FORCE MUST COMPLY WITH THE FEDERAL ADVISORY COMMITTEE ACT WHICH PROMULGATES PROCEDURES FOR PUBLIC COMMITTEES NAMED BY THE PRESIDENT ON MARCH 10 JUDGE ROYCE LAMBERTH RULED THAT ON ITS FACE FACA INDEED DOES APPLY BUT THAT MANY PARTICULARS OF THE ACT ARE UNCONSTITUTIONAL INFRINGEMENTS ON THE PRESIDENT'S POWERS CONGRESS IN SHORT SHOULD SHOVE OFF ON TELLING THE PRESIDENT HOW HE SHOULD GO ABOUT GATHERING ADVICE THE JUDGE REALLY GAVE A STAMP OF APPROVAL TO THE WORK THAT'S ALREADY GONE ON AND IS PLANNED TO GO ON MRS CLINTON CELEBRATED THIS SEEMS TO HAVE BEEN A BIT OF AN OVERSTATEMENT THE TASK FORCE CERTAINLY DID HAVE THE OPTION OF FILING SOME PAPERWORK AND GOING ABOUT ITS WORK BUT NOW IT'S DECIDED IT HAS TO APPEAL WHILE THROWING OUT FACA REQUIREMENTS ON MOST MEETINGS THE JUDGE HELD THEY DID APPLY TO FORMAL PUBLIC SESSIONS AND ENJOINED SUCH MEETINGS PENDING FULL COMPLIANCE ONE REQUIREMENT IS A 15DAY ADVANCE NOTICE AN INCONVENIENCE FOR A MEETING APPARENTLY PLANNED FOR NEXT MONDAY IT WILL BE INTERESTING TO SEE IF MRS CLINTON'S TASK FORCE DEFIES THE COURT'S INJUNCTION THE APPEAL REPEATS SEPARATIONOFPOWERS ARGUMENTS BUT PERHAPS MORE PERTINENTLY STRESSES THE CONTENTION THAT MRS CLINTON IS THE FUNCTIONAL EQUIVALENT OF A GOVERNMENT EMPLOYEE FACA DOES NOT APPLY TO INTRAGOVERNMENT GROUPS AND EXCEPT FOR MRS CLINTON THE TOP MEMBERS OF THE TASK FORCE HOLD EXECUTIVEBRANCH POSITIONS BUT WHILE RULING ON CONSTITUTIONAL GROUNDS JUDGE LAMBERTH SCOFFED AT THE NOTION SHE'S A FEDERAL OFFICIAL LET ALONE COPRESIDENT THE APPEAL WILL BE HEARD BY A THREEJUDGE PANEL OF THE DC CIRCUIT COURT POTENTIALLY INCLUDING SUPREME COURT PROSPECTS PAT WALD AND ABNER MIKVA CONCEIVABLY THE CASE MAY REACH THE SUPREME COURT ITSELF AS MR CLINTON MIGHT PONDER IN NAMING HIS NEW JUSTICE JUDGE LAMBERTH CITES A CONCURRING OPINION IN PUBLIC CITIZEN V US DEPT OF JUSTICE JUSTICE KENNEDY JOINED BY JUSTICES REHNQUIST AND O'CONNOR DECLARED FACA UNCONSTITUTIONAL JUDGE LAMBERTH ADDS JUSTICE SCALIA TOOK NO PART IN THE CASE AND JUSTICES SOUTER AND THOMAS HAVE SINCE REPLACED TWO OF THE MEMBERS OF THE PUBLIC CITIZEN MAJORITY IT WOULD BE FASCINATING TO SEE IF THIS COMPANY WOULD BE JOINED BY THE NEW CLINTON JUSTICE AT THE VERY LEAST THE CLINTON ADMINISTRATION OUGHT TO DRAW A LESSON FROM THE ALACRITY WITH WHICH IT STUMBLED INTO CONGRESSIONAL RESTRICTIONS ON THE EXECUTIVE UNLESS YOU ARE SCHOOLED IN THE HISTORIC POWER STRUGGLE BETWEEN THE LEGISLATIVE AND EXECUTIVE BRANCHES YOU WOULD NEVER CONCEIVE THAT FACA REQUIRES A PRESIDENT TO JUMP THROUGH HOOPS TO TAKE ADVICE ON FORMING A HEALTH PROPOSAL ON WHICH CONGRESS WILL IN ANY EVENT HAVE THE FINAL SAY AS HE ASSUMED THE EXECUTIVE POWER MR CLINTON CLEARLY DID NEED A BIT OF EXTRA SCHOOLING VETERANS OF INTERBRANCH STRIFE WERE APPALLED THAT HE SAID HIS BUDGET WOULD BE GOVERNED BY NUMBERS FROM THE CONGRESSIONAL BUDGET OFFICE RATHER THAN HIS OWN OFFICE OF MANAGEMENT AND BUDGET HE HAS QUIETLY SIDELINED THIS PLEDGE AND MAY EVEN RECOGNIZE IT AS A GRATUITOUS SWIPE AT THE OFFICE HE HOLDS NOW PHYSICIANS AND SURGEONS V RODHAM CLINTON SHOULD MAKE CLEAR THAT DEMOCRATIC AS WELL AS REPUBLICAN PRESIDENTS HAVE CAUSE TO WORRY ABOUT SEPARATION OF POWERS THE FACA TRAP IS CLEARLY SPELLED OUT IN RECENT CONSERVATIVE LEGAL SCHOLARSHIP THEODORE B OLSON HAS WARNED THAT CONGRESS HAS ALSO PLACED RESTRICTIONS ON THE PRESIDENT'S ABILITY TO GAIN ADVICE THAT THE REQUIREMENTS OF FACA CONSTITUTE A LONG LIST OF BURDENSOME ONEROUS FORMALITIES THESE WORDS APPEAR IN THE FETTERED PRESIDENCY LEGAL CONSTRAINTS ON THE EXECUTIVE BRANCH PUBLISHED BY THE AMERICAN INSTITUTE AND EDITED BY L GORDON CROVITZ AND JEREMY A RABKIN WITH A FOREWARD BY ROBERT H BORK PRESIDENT CLINTON'S COUNSEL WILL FIND A SECOND USEFUL PRIMER IN ENERGY IN THE EXECUTIVE FREE PRESS BY TERRY EASTLAND IT'S UNDERSTANDABLE THAT CONSERVATIVES HAVE RECENTLY CHAMPIONED EXECUTIVE POWER AND LIBERALS' LEGISLATIVE POWER FOR 20 OF THE PAST 24 YEARS THE LEGISLATURE HAS BEEN HELD BY GENERALLY LIBERAL DEMOCRATS AND THE EXECUTIVE BY MOREORLESS CONSERVATIVE REPUBLICANS INEVITABLY SEPARATIONOFPOWERS BATTLES HAVE CENTERED ON THE DAY'S HOTBUTTON ISSUES AS THEY ALSO DID IN THE RECONSTRUCTION ERA A CENTURY AGO EVEN TO THINK ABOUT SEPARATION OF POWERS LIBERAL DEMOCRATIC EXECUTIVE OFFICIALS HAVE TO LAY ASIDE A LOT OF EMOTIONAL BAGGAGE FROM COMBAT OVER THE WAR POWERS RESOLUTION THE BOLAND AMENDMENTS OLLIE NORTH AND JUDGE BORK AND THE INDEPENDENT COUNSELS BUT WITH THE RODHAM CLINTON CASE THE EDUCATION OF A FRESHMAN PRESIDENT IS UNDER WAY TRUE TO THE LIBERAL LITANY MR CLINTON HAS PROMISED TO SIGN A NEW INDEPENDENT COUNSEL LAW A PLEDGE LIKELY TO STRIKE A SITTING PRESIDENT AS RECKLESS IN PROPOSING TO CUT THE DEFICIT THROUGH TAX INCREASES HE RATHER CAVALIERLY JETTISONED HIS SUPPORT FOR A LINEITEM VETO URGED BY EVERY PRESIDENT SINCE FRANKLIN ROOSEVELT NO DOUBT HE WILL INCREASINGLY UNDERSTAND THAT CONGRESS WHILE EXEMPTING ITSELF FROM THE DAYTODAY LAWS THAT APPLY TO MERE CITIZENS HAS SMOTHERED THE PRESIDENT IN A LILLIPUTIAN NET OF TECHNICALITIES IN THE FULLNESS OF TIME BILL CLINTON MAY EVEN JOIN RONALD REAGAN IN LAMENTING THE ULTIMATE INTERBRANCH IMBALANCE OF POWER THAT HE IS LIMITED TO EIGHT YEARS IN OFFICE WHILE CONGRESS IS NOT SUBJECT TO TERM LIMITS MR BARTLEY IS EDITOR OF THE JOURNAL 9303250157 930325 AGGRESSIVE RATE ASSUMPTIONS PUT PENSION FUNDS AT RISK BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DESPITE A LACKLUSTER STOCK MARKET AND THE LOWEST LONGTERM INTEREST RATES IN 20 YEARS MANY OF THE NATION'S LARGEST COMPANIES ARE AVOIDING LARGE CONTRIBUTIONS TO THEIR PENSION FUNDS BY MAKING AGGRESSIVE ASSUMPTIONS ABOUT WHAT THEY WILL EARN ON THEIR PENSION INVESTMENTS IN A SURVEY OF 1600 CORPORATE AND PUBLIC PENSION FUNDS AND ENDOWMENTS CONSULTANTS GREENWICH ASSOCIATES FOUND THAT ABOUT 400 FUNDS OR 25 ARE PROJECTING INVESTMENT RETURNS FOR THEIR PENSION FUNDS HIGHER THAN 875 GREENWICH SAYS ANY RETURN ASSUMPTION ABOVE 875 IS RISKY MANY FUNDS ARE ASSUMING DOUBLEDIGIT INVESTMENT RETURNS THE SURVEY FOUND BY ASSUMING THEY WILL EARN HIGH RATES ON THEIR INVESTMENTS COMPANIES CAN PUT OFF ADDING MONEY TO THEIR RETIREMENT PLANS BASED ON THE NOTION THAT THE EXTRA INVESTMENT INCOME WILL COVER ANY SHORTFALL IN THE FUNDS BUT SUCH A STRATEGY IS LEAVING THESE PENSION PLANS AND THEIR RETIREES IN A POTENTIALLY RISKY SITUATION THE GREENWICH STUDY SAYS NOT ALL PENSION CONSULTANTS BELIEVE THAT AN ADJUSTMENT TO ASSUMPTIONS ON RATES OF RETURN IS NECESSARY NOW MANY INDUSTRY EXPERTS STRESS THAT COMPANIES' INVESTMENT ASSUMPTIONS ARE LONGTERM ESTIMATES AND SHOULDN'T FLUCTUATE BASED ON ONE YEAR'S RESULTS THE GREENWICH STUDY ARGUES HOWEVER THAT PENSION PLANS CAN NO LONGER COUNT ON THE HIGH RETURNS THAT THEY EARNED IN THE 1980S TO CONTINUE IN TERMS OF RETURN RATES THE 1980S WAS AN EXCEPTIONAL DECADE THE STUDY SAYS WITH THE INVESTMENT RETURN ON BONDS THE HIGHEST IN 50 YEARS AND THE RETURN ON STOCKS THE HIGHEST SINCE THE 1950S ACCORDING TO GREENWICH 17 OF THE 1600 PENSION PLANS THEY SURVEYED EXPECT ANNUAL INVESTMENT RETURNS AVERAGING BETTER THAN 11 FOR THE STANDARD & POOR'S 500STOCK INDEX OVER THE NEXT FIVE YEARS ABOUT 19 ARE EXPECTING ANNUAL RETURNS ABOVE 8 FROM THEIR BOND PORTFOLIOS THE SURVEY INCLUDED INTERVIEWS WITH 1106 LARGE CORPORATE PENSION PLANS AND 314 PUBLIC PENSION PLANS IT ALSO INCLUDED INTERVIEWS WITH 174 ENDOWMENTS AND FOUNDATIONS AMONG THE COMPANIES ASSUMING RETURNS OF MORE THAN 9 ANNUALLY ARE GENERAL MOTORS CORP INLAND STEEL INDUSTRIES INC AND MARSH & MCLENNAN COS MOST PENSION FUNDS HAVE LARGE HOLDINGS OF BOTH STOCKS AND BONDS WITH THE TOTAL RETURN ON THE S&P 500 INCLUDING REINVESTED DIVIDENDS DROPPING TO ABOUT 7 LAST YEAR AND YIELDS ON 30YEAR BONDS CURRENTLY AT 68 PENSION FUNDS NEED TO MAKE ADJUSTMENTS SAYS RODGER SMITH A GREENWICH PARTNER ASSUMPTIONS SHOULD BE DONE IN A LONGTERM CONTEXT BUT LONGTERM YIELDS ON BONDS ARE SUFFICIENTLY BELOW THESE ASSUMPTIONS THAT IT RAISES QUESTIONS ABOUT WHETHER WE SHOULD REEVALUATE HE SAYS COMPANIES THAT ARE AVOIDING COSTLY CONTRIBUTIONS TO THEIR PENSION PLANS THROUGH TOOHIGH INVESTMENT ASSUMPTIONS ARE PRACTICING DEFICIT SPENDING MR SMITH SAYS WHILE THESE HIGH RETURN ASSUMPTIONS ALLOW COMPANIES TO AVOID ADDING TO THEIR PENSION FUND NOW THEIR LOSSES COULD BE MAGNIFIED IF THE STOCK MARKET TAKES A TUMBLE HE SAYS EVEN A 10 DROP IN THE STOCK MARKET COULD LEAVE MANY PENSION FUNDS WITH BIG DEFICITS THE GREENWICH STUDY SAYS EQUALLY AS TROUBLING IS THE POSSIBILITY THAT PENSION FUNDS WILL TAKE ON LARGE AMOUNTS OF RISKY INVESTMENTS TO TRY TO ACHIEVE THE HIGH RETURNS THEY HAVE PROJECTED MR SMITH SAYS WE'VE LEARNED THAT SOME PLANS HAVE INCREASED THEIR RISK LEVELS TO MEET THEIR ACTUARIAL ASSUMPTIONS PENSION FUNDS ARE SIDESTEPPING ADDING MONEY TO THEIR RETIREMENT FUNDS AT A TIME WHEN CONCERN IS HIGH ABOUT THE GROWING NUMBER OF COMPANIES WITH UNDERFUNDED PENSION PLANS LAST YEAR THE GOVERNMENT'S PENSION AND BENEFIT GUARANTY CORP SAID THE SHORTFALL IN UNDERFUNDED CORPORATE PENSION PLANS GREW BY 10 BILLION TO 50 BILLION THE PBGC ITSELF WHICH IS SUPPOSED TO SERVE AS A BACKSTOP FOR CORPORATE RETIREES' PENSIONS HAS A CURRENT DEFICIT OF ABOUT 2 BILLION AT THE END OF EACH YEAR PENSION PLANS JUDGE WHETHER THEIR LIABILITIES WHICH ARE THEIR OBLIGATIONS TO CURRENT AND FUTURE RETIREES EXCEED THEIR ASSETS OR INVESTMENTS IF THEIR LIABILITIES EXCEED THEIR ASSETS THEY ARE THEN REQUIRED TO ADD MONEY TO THE PENSION PLAN IF A CORPORATION MAKES A CONTRIBUTION TO ITS PENSION PLAN ITS EARNINGS MAY BE HURT IN AN ENVIRONMENT WHERE CORPORATE PROFITS ARE UNDER PRESSURE NO ONE WANTS TO INCREASE CONTRIBUTIONS TO THE PENSION FUND BECAUSE IT HAS A NEGATIVE IMPACT ON EARNINGS MR SMITH SAYS PUBLIC PENSION FUNDS MEANWHILE MAY NEED TO PUT ADDITIONAL DEMANDS ON TAXPAYERS TO MAKE UP THEIR SHORTFALLS HE ADDS A GM SPOKESMAN SAYS THE COMPANY'S RETURN ASSUMPTION REFLECTS ITS LONGTERM EXPECTATIONS FOR FUTURE RETURNS A SPOKESMAN FOR INSURANCE BROKER MARSH & MCLENNAN SAYS THE COMPANY HAS EXCEEDED A 9 RETURN IN THE PAST AND EXPECTS TO IN THE FUTURE HE ADDS THAT MARSH'S PENSION FUND IS SUBSTANTIALLY WEIGHTED IN EQUITIES AN INLAND SPOKESMAN SAYS THE RATE OF RETURN ON THAT COMPANY'S PENSION FUND EXCEEDED 95 LAST YEAR IN PART BECAUSE OF SUCCESSFUL JUNKBOND INVESTMENTS HE SAYS THE COMPANY THINKS IT WILL CONTINUE TO EARN RETURNS ABOVE THAT LEVEL DURING THE 1980S WHEN INTEREST RATES WERE AS HIGH AS 20 MANY PENSION FUNDS ASSUMED THEY WOULD EARN RATES OF RETURN OF ABOUT 8 MR SMITH SAYS BUT WITH THE HISTORICALLY HIGH RETURNS ON STOCK AND BOND INVESTMENTS IN THE 1980S PENSION PLANS WERE ABLE TO EARN EVEN HIGHER RETURNS THAN THEY HAD ANTICIPATED ALLOWING THEM TO BUILD UP A FINANCIAL CUSHION AS A RESULT A LARGE NUMBER OF PENSION FUNDS HAVE BEEN ABLE TO AVOID ADDING MONEY TO THEIR PENSION PLANS OVER THE PAST FEW YEARS STILL THE CUSHIONS BUILT UP BY PENSION PLANS ARE DWINDLING AND MR SMITH ADDS PENSION PLANS' SURPLUS FUNDS WILL SHRINK VERY RAPIDLY IF THEY FAIL TO MEET HIGH RETURN ASSUMPTIONS 9303250156 930325 MCDONNELL GENERALS AGREE TO APPEAR BEFORE A PANEL WASHINGTON MCDONNELL DOUGLAS CORP CHAIRMAN JOHN MCDONNELL AND AIR FORCE OFFICIALS AGREED TO APPEAR BEFORE A CONGRESSIONAL COMMITTEE THAT HAD THREATENED THEM WITH SUBPOENAS REP JOHN CONYERS D MICH CHAIRMAN OF THE HOUSE GOVERNMENT OPERATIONS COMMITTEE HAD SCHEDULED A COMMITTEE MEETING FOR YESTERDAY TO CONSIDER WHETHER TO COMPEL APPEARANCES BY MR MCDONNELL AND THREE AIR FORCE GENERALS THEY HAD BEEN ASKED TO TESTIFY LAST WEEK ON THE AIR FORCE'S TROUBLED C17 MILITARY TRANSPORT PROGRAM BUT DECLINED TO APPEAR YESTERDAY'S MEETING WAS CANCELED AFTER MCDONNELL DOUGLAS AND THE PENTAGON SENT LETTERS TO THE COMMITTEE AGREEING TO TESTIFY HOWEVER IN HIS LETTER DEPUTY DEFENSE SECRETARY WILLIAM PERRY SAID HE WOULDN'T PERMIT THE AIR FORCE GENERALS TO APPEAR UNTIL AFTER APRIL 20 WHEN THE AIR FORCE'S OWN REVIEW OF THEIR ACTIONS IS SCHEDULED TO BE COMPLETED IN A REPORT RELEASED IN JANUARY THE PENTAGON'S INSPECTOR GENERAL ACCUSED THE GENERALS AND SEVERAL OTHER OFFICIALS OF IMPROPERLY HANDLING FINANCIAL PAYMENTS TO MCDONNELL DOUGLAS THE NATION'S LARGEST DEFENSE CONTRACTOR 9303250155 930325 ECONOMY GREENSPAN SAYS MARKETS BELIEVE DEFICIT WILL DROP WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THE FINANCIAL MARKETS ARE FINALLY CONVINCED THAT PRESIDENT CLINTON AND CONGRESS ARE GOING TO CUT THE FEDERAL BUDGET DEFICIT WHAT THE MARKETS ARE PRESUMING IS THAT THERE WILL BE SIGNIFICANT DEFICIT REDUCTION WHEREAS PREVIOUSLY THEY DID NOT BELIEVE THAT MR GREENSPAN SAID IN TESTIMONY BEFORE THE SENATE FINANCE COMMITTEE MR GREENSPAN WHO HAS BEEN CRITICIZED FOR APPEARING TOO COZY WITH THE PRESIDENT EMPHASIZED THAT HE ISN'T ENDORSING THE SPECIFICS OF PRESIDENT CLINTON'S ECONOMIC PLAN AND UNDER PRESSURE FROM REPUBLICANS THE CHAIRMAN REITERATED THAT HE PREFERRED SPENDING CUTS TO TAX INCREASES THERE HAS BEEN SOME ARGUMENT AMONG BOND MARKET ANALYSTS OVER WHETHER THE RECENT DROP IN LONGTERM INTEREST RATES REFLECTS FAITH IN THE CLINTON PLAN TO LOWER THE DEFICIT OR AN AFFIRMATION THAT ITS TAX INCREASES WOULD TANK THE ECONOMY MR GREENSPAN SAID THE LATTER IS PROBABLY NOT THE CASE IF THERE WAS A STRONG ARGUMENT THAT THE ECONOMY WAS GOING TO COME DOWN THEN I HAVE DIFFICULTY IN KNOWING WHY THE LEVEL OF LONGTERM INTEREST RATES WAS NOT MUCH LOWER A YEAR AND A HALF AGO WHEN THE SHORTTERM ECONOMIC OUTLOOK WAS FAR WORSE HE SAID 9303250154 930325 DIVIDEND NEWS BROOKLYN UNION GAS CO BROOKLYN UNION GAS CO BROOKLYN NY SAID ITS BOARD APPROVED A 3FOR2 SPLIT OF THE COMPANY'S COMMON SHARES SUBJECT TO SHAREHOLDER AUTHORIZATION AT A SPECIAL MEETING IN JUNE THE ENERGY COMPANY WHICH HAS 293 MILLION SHARES OUTSTANDING SAID THE SPLIT WOULD IMPROVE MARKETABILITY OF ITS SHARES 9303250153 930325 DOW JONES DIRECTOR AGREES TO FILE REPORTS ON STOCK TRANSACTIONS WASHINGTON A DIRECTOR OF DOW JONES & CO AGREED TO MAKE TIMELY REPORTS OF STOCK TRANSACTIONS AFTER THE SECURITIES AND EXCHANGE COMMISSION DETERMINED THAT SHE HAD FAILED TO MAKE 17 REQUIRED REPORTS COVERING SALES OF 168 MILLION IN DOW JONES SHARES BETWEEN 1986 AND 1991 THE DIRECTOR BETTINA BANCROFT OF LOS ANGELES AND OTHER MEMBERS OF THE BANCROFT FAMILY ARE CONTROLLING SHAREHOLDERS OF DOW JONES THE SEC REQUIRES DIRECTORS TOP OFFICERS AND HOLDERS OF 10 OR MORE OF A COMPANY'S STOCK TO REPORT ANY CHANGES IN THEIR HOLDINGS ON A MONTHLY BASIS MISS BANCROFT HAS BEEN A DIRECTOR SINCE 1982 OF DOW JONES WHICH PUBLISHES THE WALL STREET JOURNAL THE 17 REPORTS WERE ULTIMATELY FILED IN SEPTEMBER 1991 MISS BANCROFT'S LAWYER FREDERICK MARX OF BOSTON SAID HIS CLIENT PROMPTLY FILED ALL REQUIRED REPORTS AFTER LEARNING THAT THE INSTITUTION HOLDING HER DOW JONES SHARES HADN'T FILED THE REPORTS THE SEC ORDERED MISS BANCROFT TO CEASE AND DESIST FROM VIOLATING SEC REPORTING RULES MISS BANCROFT CONSENTED TO THE ORDER WITHOUT ADMITTING ANY VIOLATIONS NO SANCTIONS WERE IMPOSED THE SEC HAS TAKEN SIMILAR ACTIONS AGAINST SEVEN OR EIGHT DIRECTORS OF OTHER COMPANIES IN THE PAST 18 MONTHS WHEN FAILURE TO FILE HAS BEEN VIEWED AS EGREGIOUS ACCORDING TO HERBERT JANICK ASSISTANT DIRECTOR IN THE SEC'S ENFORCEMENT DIVISION THE SEC FOR YEARS HAS REQUIRED SOCALLED CORPORATE INSIDERS TO REPORT STOCK OWNERSHIP CHANGES HOWEVER UNDER RULES THAT TOOK EFFECT FOR 1992 FILINGS COMPANIES MUST DISCLOSE LATE FILINGS IN PROXY STATEMENTS AND A NUMBER OF COMPANIES ALREADY HAVE MADE SUCH DISCLOSURES IN THE LATEST DOW JONES PROXY STATEMENT THE COMPANY SAID THAT SIX INSIDERS INCLUDING MISS BANCROFT HAD FAILED TO MAKE 1992 FILINGS ON A TIMELY BASIS MR MARX SAID THAT THE SEC WAS AWARE OF MISS BANCROFT'S LATE 1992 FILINGS AND INDICATED IT WOULDN'T TAKE ACTION AGAINST HER REGARDING THOSE REPORTS 9303250152 930325 TECHNOLOGY DIGITAL'S FOUNDER OLSEN IS SAID TO BACK STARTUP BOSTON KENNETH H OLSEN FOUNDER AND FORMER PRESIDENT OF DIGITAL EQUIPMENT CORP HAS INVESTED IN A STARTUP COMPUTER MAKER IN CONCORD MASS ACCORDING TO A PUBLISHED REPORT MR OLSEN 67 YEARS OLD WAS ASKED TO RESIGN BY HIS BOARD OF DIRECTORS LAST SUMMER IN THE FACE OF MANAGEMENT PROBLEMS AND MOUNTING LOSSES AT THE MAYNARD MASS COMPUTER MAKER ALTHOUGH THE STARTUP MODULAR COMPUTING TECHNOLOGIES INC FACES A COMPETITIVE ENVIRONMENT REGARDLESS OF WHO IS BACKING THE COMPANY IT IS DESIGNING PRODUCTS FOR THE FASTGROWING SUPERSERVER MARKET MODULAR'S COMPUTERS MIGHT TYPICALLY BE USED AT THE CENTER OF A NETWORK OF PCS AND THEY WILL BE POWERED BY INTEL CORP CHIPS OR REDUCED INSTRUCTIONSET RISC CHIPS MODULAR SAYS IT WON'T USE DIGITAL'S RISC CHIP THE BOSTON GLOBE REPORTED MR OLSEN'S BACKING OF THE COMPANY BUT DIDN'T SAY HOW MUCH HE HAD INVESTED INITIAL CAPITALIZATION OF MODULAR'S WAS 14 MILLION SAID ITS TREASURER STANLEY R MILOSZEWSKI HE DECLINED TO CONFIRM MR OLSEN'S INVESTMENT AND MR OLSEN COULDN'T BE REACHED FOR COMMENT MR OLSEN'S EXECUTIVE ASSISTANT SAID HIS ROLE AT MODULAR ISN'T A BIG THING HE'S SIMPLY GIVEN ADVICE TO STARTUPS FROM TIME TO TIME MODULAR'S RANKS INCLUDE FORMER DIGITAL ENGINEERS AND MANAGERS SOME WORKED ON A SUPERSERVER COMPUTER DESIGN AT DIGITAL THAT HAD MR OLSEN'S BACKING IT WAS CANCELED LAST YEAR 9303250151 930325 PHILIP MORRIS MAY BE CREATING AN OFFICE OF COUNTERINTELLIGENCE BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL ANTISMOKING GROUPS HAD PHILIP MORRIS'S NUMBER AT LEAST BRIEFLY EARLIER THIS MONTH THE WORLD'S LARGEST CIGARETTE COMPANY SET UP A TOLLFREE TELEPHONE NUMBER AND URGED SMOKERS TO CALL THEIR ELECTED OFFICIALS TO FUME ABOUT PRESIDENT CLINTON'S INCLINATION TO RAISE CIGARETTE TAXES AS PART OF HIS HEALTHCARE PLAN OBLIGINGLY IRATE SMOKERS BEGAN BOMBARDING THE CAPITOL HILL SWITCHBOARD WITH PROTEST CALLS THOUGH THE CALLS MAY HAVE GIVEN THE APPEARANCE OF A SPONTANEOUS OUTCRY PHILIP MORRIS COS CONTACTED MANY OF THE MILLIONS OF SMOKERS STORED IN ITS DATABASES FOR JUST SUCH OCCASIONS AND GAVE THEM THE TOLLFREE NUMBER OR PATCHED THEM THROUGH IMMEDIATELY TO WASHINGTON WE REACHED OUT TO A NUMBER OF PEOPLE SAYS A PHILIP MORRIS SPOKESMAN THE TOBACCO MERCHANT'S PROPAGANDA MACHINE HUMMED ALONG SMOOTHLY FOR A FEW DAYS UNTIL THE TOLLFREE NUMBER FELL INTO THE HANDS OF ANTISMOKING ACTIVISTS SOME IN THE ANTISMOKING CAMP MAKE A POINT OF INFILTRATING TOBACCOCOMPANY MAILING LISTS TO KEEP TRACK OF THE INDUSTRY'S LOBBYING EFFORTS IN A FAX TO HEALTH GROUPS AND NEWSPAPERS ACTION ON SMOKING AND HEALTH A WASHINGTONBASED ANTISMOKING GROUP PUBLISHED THE 800 NUMBER URGING PEOPLE TO CALL CAPITOL HILL AND REGISTER THEIR SUPPORT FOR HIGHER CIGARETTE TAXES THE GROUP ALSO ADMONISHED PHILIP MORRIS FOR DRUMMING UP PHONY OPPOSITION THE SYRACUSE NY HERALDJOURNAL ALSO PUBLISHED THE NUMBER IN AN EDITORIAL SUGGESTING THAT READERS TAKE ADVANTAGE OF PHILIP MORRIS'S LARGESS TO VOICE THEIR SUPPORT OF THE CIGARETTE TAX PHILIP MORRIS WHICH ONCE SPONSORED AN ADVERTISING CAMPAIGN ON THE VIRTUES OF FREE SPEECH WAS IN NO MOOD TO FOOT THE OPPOSITION'S PHONE BILL AND HASTILY CHANGED THE NUMBER THE COMPANY IS TRYING TO KEEP THE NEW NUMBER A SECRET IT WOULDN'T DISCLOSE IT TO A REPORTER AND ONLY RELUCTANTLY ACKNOWLEDGED THAT THE TOLLFREE PROTEST LINE IS STILL OPERATING PHILIP MORRIS SAYS IT DOESN'T VIEW ACCESS TO ITS TOLLFREE NUMBER AS A FIRST AMENDMENT ISSUE OUR 800 NUMBER IS DESIGNATED FOR OUR CONSUMERS SAYS A PHILIP MORRIS SPOKESMAN WHO WARNS THAT THE NUMBER WILL BE CHANGED AGAIN IF IT FALLS INTO THE WRONG HANDS OTHERWISE HE SAYS FOLKS WHO DON'T SHARE OUR CONSUMERS' AGENDA MAY WELL DECIDE IT'S THEIR OPPORTUNITY TO LOBBY THE OTHER SIDE OF THE ISSUE 9303250150 930325 INTERNATIONAL EC PANEL PROPOSES TO GIVE RUSSIA WIDER TRADE ACCESS BRUSSELS SEEKING TO SEND A SIGNAL OF SUPPORT FOR MOSCOW'S SHAKY FREEMARKET REFORMS THE EUROPEAN COMMUNITY COMMISSION PROPOSED GREATER TRADE ACCESS FOR RUSSIA WHEN THE POLITICAL AND ECONOMIC SITUATION THERE ALLOWS IT THE COMMISSION SAID IT WANTS TO OPEN THE POSSIBILITY OF EVENTUALLY REACHING A FREETRADE ACCORD WITH MOSCOW EC NATIONS CURRENTLY ARE NEGOTIATING A PARTNERSHIP AGREEMENT WITH RUSSIA AND THE COMMISSION SAID IT WANTS TO WIDEN THE SCOPE OF SUCH TALKS THE COMMISSION WILL MAKE ITS PROPOSALS TO EC FOREIGN MINISTERS AT THEIR NEXT MEETING APRIL 5 IT'S NOT CLEAR WHETHER THE FOREIGN MINISTERS WILL GO ALONG WITH SUCH A PLAN GIVEN THE UNCERTAINTY IN RUSSIA MOREOVER THE COMMISSION STRESSED THAT SUCH OPENNESS IN TRADE WOULD BE YEARS AWAY IT'S QUITE CLEAR THAT THE POLITICAL CRISIS IN RUSSIA IS SERIOUS SAID THE EC'S FOREIGN POLICY COMMISSIONER HANS VAN DEN BROEK HE SAID WIDER NEGOTIATIONS WITH THE COMMUNITY COULD PROVIDE AN ELEMENT OF STABILITY FOR RUSSIA THE COMMUNITY ALREADY HAS EMPLOYED A GRADUAL APPROACH TOWARD CLOSER TRADE TIES WITH HUNGARY POLAND AND SEVERAL OTHER EASTERN EUROPEAN NATIONS ASSOCIATION AGREEMENTS NOW IN PLACE WITH THOSE COUNTRIES PROVIDE FOR GRADUALLY INCREASED EC MARKET ACCESS OVER A 10YEAR PERIOD 9303250149 930325 WHO'S NEWS CONTINENTAL AIR'S OPERATING CHIEF FORCED TO RESIGN BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CONTINENTAL AIRLINES' PRESIDENT AND CHIEF OPERATING OFFICER LEWIS H JORDAN WAS FORCED TO RESIGN TUESDAY AFTER AN APPARENT CLASH WITH THE AIRLINE'S CHIEF EXECUTIVE OFFICER ROBERT FERGUSON III MR JORDAN DECLINED TO COMMENT ON HIS DEPARTURE A CONTINENTAL SPOKESMAN SAID ONLY THAT MR JORDAN LEFT THE AIRLINE TO PURSUE OTHER OPPORTUNITIES BUT COULDN'T SAY WHAT THOSE OTHER OPPORTUNITIES WERE THE SPOKESMAN WOULDN'T COMMENT FURTHER THE MOVE LEAVES MR FERGUSON ALONE AT THE CONTROLS OF THE AIRLINE MAKING BOTH THE STRATEGIC AND OPERATIONAL DECISIONS AS CONTINENTAL MOVES INTO THE LAST PHASE OF ITS TWOYEAR SOJOURN UNDER BANKRUPTCY COURT PROTECTION YESTERDAY CONTINENTAL'S BOARD NAMED MR FERGUSON PRESIDENT AND ABOLISHED HIS PREVIOUS TITLE OF VICE CHAIRMAN THUS SIMPLIFYING THE COMPANY'S ORGANIZATION MR FERGUSON WILL REMAIN CHIEF EXECUTIVE MR JORDAN'S RESPONSIBILITIES WILL BE ASSUMED BY MR FERGUSON AND OTHER SENIOR OFFICERS THE COMPANY SAID THE CARRIER IS A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC MR JORDAN'S DEPARTURE OCCURS JUST AS CONTINENTAL IS GETTING NEW OWNERS AS PART OF ITS REORGANIZATION PLAN THOSE NEW OWNERS CONSTITUTE THE AIRLINE'S UNSECURED CREDITORS A FORT WORTH TEXAS INVESTOR GROUP AND AIR CANADA BUT MR JORDAN'S RESIGNATION APPEARS TO HAVE NO CONNECTION TO THE IMPENDING CHANGE IN CONTROL A SPOKESMAN FOR AIR PARTNERS LP SAID THE INVESTOR GROUP WAS INFORMED OF MR JORDAN'S RESIGNATION ONLY AFTER THE FACT ADDING THAT IT WAS NOTHING WE HAD ANY SAY OR INVOLVEMENT IN SIMILARLY CONTINENTAL'S UNSECURED CREDITORS LEARNED OF THE MOVE ONLY WHEN MR JORDAN HIMSELF TELEPHONED TO INFORM THE COMMITTEE'S CHAIRMAN THE CLASH BETWEEN MESSRS FERGUSON AND JORDAN OCCURRED WITHIN THE PAST WEEK AND APPARENTLY INVOLVED CONTROL OF THE COMPANY MR JORDAN IS SAID TO HAVE PRESSED FOR A GREATER ROLE IN THE COMPANY HE HAD BEEN IN CHARGE OF DAYTODAY OPERATIONS AND RECENTLY LED A FRUITLESS LOBBYING EFFORT TO KEEP THE COMPANY'S MAINTENANCE BASE AT DENVER'S STAPLETON AIRPORT OPERATING EVEN AFTER THE AIRPORT CLOSES IN DECEMBER AND FLIGHTS MOVE TO DENVER INTERNATIONAL AIRPORT CONTINENTAL SAYS IT CAN'T AFFORD TO BUILD A NEW MAINTENANCE BASE AS CONTINENTAL'S PRESIDENT SINCE AUGUST 1991 MR JORDAN ALREADY HAD SURVIVED IN THAT POST NEARLY TWICE AS LONG AS MOST OF HIS PREDECESSORS CONTINENTAL PRESIDENTS RARELY LASTED MORE THAN A YEAR WHEN THE COMPANY WAS CONTROLLED BY FORMER CHAIRMAN FRANK LORENZO AND BEFORE MR JORDAN'S TENURE THE COMPANY WENT THROUGH EIGHT PRESIDENTS IN EIGHT YEARS A CONTINENTAL EXECUTIVE SINCE 1986 MR JORDAN JOINED THE COMPANY AS AN EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER RUNNING THE TECHNICAL AND OPERATIONAL SIDE OF THE CARRIER BEFORE JOINING CONTINENTAL HE HAD BEEN AN EXECUTIVE AT THE CARGO CARRIER FLYING TIGERS AND LATER REPUBLIC AIRLINES SEPARATELY CONTINENTAL SAID IT IS RENEGOTIATING SEVERAL BILLION DOLLARS OF AIRCRAFT IT HAS ON ORDER IN BANKRUPTCY COURT LAST WEEK THE AIRLINE REJECTED ITS CONTRACT TO PURCHASE 20 AIRBUS INDUSTRIE WIDEBODY JETS AIRBUS HAS SINCE MADE A NEW PROPOSAL TO CONTINENTAL THE CONTENTS OF WHICH COULDN'T BE DETERMINED AT THE SAME TIME WHILE CONTINENTAL HASN'T TAKEN ANY ACTION ON ITS CONTRACTS TO BUY 50 BOEING CO 737S AND 25 757S THE AIRLINE SAID IT IS IN TALKS WITH THE SEATTLE COMPANY AS WELL AS WITH MCDONNELL DOUGLAS CO ABOUT OTHER JET ORDERS WE'RE TALKING WITH EVERYBODY SAID AN AIRLINE SPOKESMAN WHO ADDED NOTHING HAS BEEN DECIDED 9303250148 930325 FINANCING BUSINESS BAREFOOT INC BAREFOOT INC WORTHINGTON OHIO ANNOUNCED A SECONDARY PUBLIC OFFERING OF 18 MILLION COMMON SHARES AT 2225 EACH THE LAWNCARE COMPANY WILL SELL 500000 SHARES NETTING IT 104 MILLION GOLDER THOMA & CRESSEY A CHICAGO VENTURE CAPITAL FIRM WILL SELL 13 MILLION SHARES BAREFOOT WILL USE ITS PROCEEDS TO RETIRE 6 MILLION IN SUBORDINATED NOTES REPAY 275 MILLION IN OTHER DEBT AND FOR GENERAL CORPORATE PURPOSES WILLIAM BLAIR & CO IS THE LEAD UNDERWRITER THE UNDERWRITERS HAVE A 30DAY OPTION TO BUY UP TO 270000 ADDITIONAL SHARES TO COVER OVERALLOTMENTS 9303250147 930325 PEROT BACKS TRIAL PERIOD FOR FREETRADE AGREEMENT WASHINGTON ROSS PEROT WHO HAS NOW BECOME THE MAIN VOICE OF OPPOSITION TO A FREETRADE ACCORD WITH MEXICO AND CANADA SAID THE US SHOULDN'T SIGN THE PACT BUT IMPLEMENT IT ON A TRIAL BASIS MR PEROT SPOKE AGAINST THE TREATY DURING HIS PRESIDENTIAL CAMPAIGN PREDICTING IT WOULD RESULT IN A GIANT SUCKING SOUND TO THE SOUTH DRAWING OFF JOBS AND HOPE IF MR PEROT WERE TO CAMPAIGN VIGOROUSLY AGAINST THE NORTH AMERICAN FREE TRADE AGREEMENT AND JOIN FORCES WITH THE GRASSROOTS MOVEMENTS AGAINST THE ACCORD IT WOULD DIM THE PACT'S CHANCES OF WINNING APPROVAL IN CONGRESS MR PEROT URGED THE PRESIDENT TO PROCEED CAUTIOUSLY AND ENSURE THAT AMERICA BE ABLE TO TEST AND PULL OUT OF ANY FREETRADE AGREEMENT IN AN INTERVIEW US TRADE REPRESENTATIVE MICKEY KANTOR RESPONDED TO MR PEROT'S CONCERNS SAYING THAT THE TRADE ACCORD ALREADY CONTAINS PROVISIONS ALLOWING EACH SIDE TO CANCEL THE DEAL AFTER SIX MONTHS AND TO AMEND THE TEXT THE PRESIDENT IS ADDRESSING ALMOST ALL OF THE PROBLEMS HE'S RAISED MR KANTOR SAID IN A SPEECH YESTERDAY TO THE AFLCIO'S INDUSTRIAL UNION DEPARTMENT MR KANTOR WARNED THE UNION MAY NOT BE PLEASED BY ALL THE RESULTS OF THE ADMINISTRATION'S WORK ON THE TRADE PACT IN THE END MANY OF YOU MAY NOT AGREE WITH THE ADMINISTRATION AND THE AGREEMENTS WE REACH HE SAID 9303250145 930325 WHO'S NEWS PEERLESS MANUFACTURING CO PEERLESS MANUFACTURING CO DALLAS SHERRILL STONE 56YEAROLD PRESIDENT OF THIS MAKER OF SEPARATORS FILTERS AND ENVIRONMENTAL PROTECTION EQUIPMENT WAS NAMED TO THE ADDITIONAL POSTS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR STONE SUCCEEDS DONALD A SILLERS JR 66 WHO IS RETIRING BUT WILL REMAIN A DIRECTOR 9303250144 930325 SPORTSCAR MAKER'S CHIEF PUTS A BRAKE ON BID TO OUST HIM BOARD OF VECTOR AEROMOTIVE DEMANDS HIS RESIGNATION HE LOCKS HIMSELF IN PLANT BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WILMINGTON CALIF A MAKER OF 450000 SPORTS CARS IS TRYING TO PUSH ITS CHIEF EXECUTIVE OFFICER OUT OF THE DRIVER'S SEAT BUT HE HAS LOCKED HIMSELF IN THE BOARD OF VECTOR AEROMOTIVE CORP LAST WEEK ASKED FOR THE RESIGNATION OF GERALD WIEGERT THE CAR DESIGNER WHO FORMED THE COMPANY SIX YEARS AGO INSTEAD MR WIEGERT ON MONDAY INSTRUCTED SECURITY GUARDS TO DENY ENTRANCE TO THE COMPANY'S EIGHT EMPLOYEES EXECUTIVES SAID THEN HE CHANGED THE DOOR LOCKS A DIRECTOR JOHN POPE SAID HE SHOWED UP AT VECTOR'S HEADQUARTERS A COMPLEX OF FOUR BUILDINGS IN THIS INDUSTRIAL CITY NEAR THE PORT OF LOS ANGELES AND WAS TOLD BY A SECURITY GUARD THAT NO ONE WAS TO BE ALLOWED INSIDE I CALLED MR WIEGERT FROM MY CELLULAR PHONE AND ASKED FOR ADMISSION AND HE DENIED IT MR POPE SAID EXECUTIVES SAID VECTOR'S BOARD FILED A CIVIL LAWSUIT SEEKING A COURT ORDER TO RESTRAIN MR WIEGERT FROM EXERCISING AN OFFICE HE DOESN'T HOLD AND IF NECESSARY TO FORCIBLY REMOVE HIM FROM THE BUILDING MR WIEGERT SAID HE AND A FEW ASSOCIATES ACTED TO PREVENT A RIVAL CONTINGENT OF OFFICERS FROM TAKING OVER THE COMPANY BEFORE THEY LOCKED US OUT I LOCKED THEM OUT MR WIEGERT SAID VECTOR WHOSE STINGRAYSHAPED CARS ZOOM FROM ZERO TO 60 IN 33 SECONDS HAS BEEN STUCK IN A FINANCIAL REVERSE GEAR FOR THE YEAR ENDED SEPT 30 1992 THE COMPANY REPORTED A NET LOSS OF 4 MILLION OR 39 CENTS A SHARE A YEAR EARLIER IT HAD A NET LOSS OF 53 MILLION OR 111 A SHARE THE BOARD ACTED TO REMOVE MR WIEGERT BECAUSE WE WERE INCREASINGLY CONCERNED WITH THE FINANCIAL AND OPERATIONAL PERFORMANCE OF THE COMPANY MR POPE SAID THE COMPANY NEEDS AN INFUSION OF CASH BASED ON HIS RECORD IN THE PAST WE THINK WE'RE BETTER OFF TRYING TO RAISE FUNDS WITHOUT MR WIEGERT HE SAID CITING THE NEED TO REDUCE OPERATING COSTS VECTOR RECENTLY SUSPENDED PRODUCTION OF ITS FLAGSHIP VECTOR W8 MODEL THE AUTO RETAILS FOR 448000 CAN REACH A SPEED OF 218 MPH AND HAS THE LOWEST GAS MILEAGE OF ANY CAR ON THE AMERICAN MARKET AN ENVIRONMENTAL PROTECTION AGENCY ESTIMATE OF SEVEN MILES A GALLON IN THE CITY FEWER THAN TWO DOZEN HAVE BEEN MADE HOWEVER THE COMPANY SAID IT STILL PLANS TO INTRODUCE A SPORTIER MODEL WHICH WOULD RETAIL FOR 765000 AND REACH SPEEDS OF 260 MPH 9303250143 930325 HOUSE PANEL APPROVES BILL RAISING US DEBT CEILING WASHINGTON THE HOUSE WAYS AND MEANS COMMITTEE APPROVED LEGISLATION INCREASING THE CEILING ON THE FEDERAL DEBT TO 437 TRILLION THROUGH SEPT 30 THE INCREASE APPROVED 2314 LARGELY ALONG PARTY LINES CONFORMS TO THE REQUEST OF TREASURY SECRETARY LLOYD BENTSEN THE TIMING OF A HOUSE FLOOR VOTE IS UNCERTAIN BUT FINAL CONGRESSIONAL ACTION IS EXPECTED BEFORE THE START OF CONGRESS'S SPRING RECESS AT THE END OF NEXT WEEK UNDER THE TEMPORARY DEBT MEASURE THE LIMIT WOULD REVERT AFTER SEPT 30 TO THE CURRENT LEVEL OF 4145 TRILLION UNLESS CONGRESS APPROVED A NEW LIMIT THE DEBT CURRENTLY 4128 TRILLION IS PUSHING AGAINST THE CEILING 9303250142 930325 INTERNATIONAL BANCA COMMERCIALE ITALIANA MILAN BANCA COMMERCIALE ITALIANA A STATEOWNED ITALIAN BANK REPORTED THAT 1992 NET INCOME FELL 17 TO 2638 BILLION LIRE 167 MILLION FROM 3175 BILLION LIRE A YEAR EARLIER 9303250140 930325 WHO'S NEWS HAYESDANA INC HAYESDANA INC ST CATHARINES ONTARIO WILLIAM CARROLL WAS NAMED PRESIDENT OF THIS MAKER OF VEHICLE COMPONENTS MR CARROLL WHO WAS FORMERLY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER SUCCEEDS THOMAS DATTILO WHO WAS NAMED PRESIDENT OF THE VICTOR PRODUCTS DIVISION OF DANA CORP TOLEDO OHIO WHICH OWNS 57 OF THE COMMON SHARES OF HAYESDANA 9303250139 930325 DSC COMMUNICATIONS JOB DALLAS DSC COMMUNICATIONS CORP SAID IT AGREED TO PROVIDE NETWORKING PRODUCTS TO OPTUS COMMUNICATIONS A TELEPHONE SERVICE PROVIDER BASED IN SYDNEY AUSTRALIA TERMS WEREN'T DISCLOSED DELIVERIES ARE SCHEDULED TO BEGIN IN THE SECOND QUARTER DSC SAID 9303250138 930325 INTERNATIONAL BRIEF LASMO PLC OIL COMPANY POSTS NET LOSS OF 5711 MILLION FOR 1992 THE UNITED KINGDOM OIL GROUP LASMO PLC REPORTED A NET LOSS OF 385 MILLION 5711 MILLION FOR 1992 WEIGHED DOWN BY 426 MILLION OF EXCEPTIONAL COSTS FOR PROVISIONS AND LOSSES ON DISPOSALS THE DIVIDEND WAS CUT 61 TO 33 PENCE FROM 85 PENCE A SHARE THE COMPANY'S STOCK DOVE 19 PENCE OR 99 TO 173 PENCE ON THE NEWS THE EROSION FROM 1991'S RESTATED LOSS OF 4 MILLION COMPARED WITH PREVIOUS MARKET FORECASTS FOR A PROFIT OF 28 MILLION TO 59 MILLION CHIEF EXECUTIVE OFFICER JOE DARBY SAID THAT THE GROUP'S GOAL NOW IS TO REDUCE ITS DEBT TO MORE MANAGEABLE LEVELS AND SET OUT A STRATEGY FOR ASSET SALES AND COST CUTTING HE ADDED THAT LASMO FEELS IT HAS CLEARED THE DECKS AND IS READY TO MOVE AHEAD HE WARNED THOUGH THAT PROFITS WILL REMAIN UNDER PRESSURE IN THE NEAR TERM AS A RESULT OF LOW ENERGY PRICES AND UNACCEPTABLY HIGH GEARING OR DEBTTOEQUITY RATIO 9303250137 930325 WHO'S NEWS COLLINS INDUSTRIES' CARTWRIGHT QUITS GOETSCH IS SUCCESSOR BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL HUTCHINSON KAN COLLINS INDUSTRIES INC SAID AN INVESTIGATION BY A COMMITTEE OF OUTSIDE DIRECTORS DETERMINED THAT ONLY ITS THEN CHIEF FINANCIAL OFFICER KNEW THAT FINANCIAL RESULTS REPORTED IN RECENT QUARTERS WERE MISSTATED NEVERTHELESS THE MANUFACTURER OF AMBULANCES SAID THAT RON CARTWRIGHT PRESIDENT OF ITS WHEELED COACH INDUSTRIES UNIT HAS RESIGNED HE WAS SUCCEEDED BY GARY G GOETSCH PRESIDENT OF THE COMPANY'S MOBILETECH UNIT THE INVESTIGATION INVOLVED IMPROPERLY RECORDED VENDOR PAYABLES AT THE ORLANDO FLA SUBSIDIARY MR CARTWRIGHT'S RESIGNATION FOLLOWED THAT OF JOSEPH S HEBB THE COMPANY'S CHIEF FINANCIAL OFFICER THE COMPANY SAID MR CARTWRIGHT RESIGNED BECAUSE OF DIFFERENCES IN CORPORATE MANAGEMENT PHILOSOPHIES DONALD COLLINS THE COMPANY'S PRESIDENT WOULDN'T ELABORATE CITING A CONFIDENTIALITY AGREEMENT WITH MR CARTWRIGHT MR CARTWRIGHT COULDN'T BE REACHED FOR COMMENT BUT DON S PETERS ONE OF THE DIRECTORS WHO CONDUCTED THE INVESTIGATION SAID MR CARTWRIGHT'S DEPARTURE HAD BEEN A CONSIDERATION BY THE COMPANY FOR SOME TIME AND FINALLY IT WAS DECIDED THAT THIS WAS THE TIME TO DO THAT HE SAID MR CARTWRIGHT'S MANAGEMENT STYLE WAS AMONG THE ISSUES MR HEBB RESIGNED EARLIER THIS MONTH AFTER THE COMPANY DISCLOSED THAT FINANCIAL MISSTATEMENTS CAUSED FISCAL 1992 NET INCOME TO BE OVERSTATED THE COMPANY LATER INDICATED THAT 16 MILLION OF VENDOR PAYABLES WEREN'T PROPERLY RECORDED IN THE FOURTH QUARTER ENDED OCT 31 AND ABOUT 900000 OF UNSUPPORTED ACCOUNTING ENTRIES WERE MADE IN THE CURRENT FISCAL YEAR'S FIRST QUARTER ENDED JAN 31 MR COLLINS DECLINED TO SAY WHETHER THE MISSTATEMENTS WERE CAUSED BY ERRORS OR DELIBERATE DECEPTION 9303250136 930325 CLINTON TAX PLAN FOR FOREIGN OPERATIONS DRAWS COMPLAINTS FROM US COMPANIES BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON MAKES IT ABUNDANTLY CLEAR THAT HE WANTS US COMPANIES TO SUCCEED IN THE GLOBAL ECONOMY WHAT'S LESS UNDERSTOOD IS THAT HE WANTS THEM TO DO SO FROM US SOIL AT LEAST THAT'S THE THRUST OF SEVERAL ARCANE PROPOSALS IN THE ADMINISTRATION'S ECONOMIC PLAN WHICH WOULD INCREASE THE TAXES MANY US COMPANIES ARE FORCED TO PAY ON THEIR OPERATIONS OVERSEAS ON THE SURFACE THE IMPULSE SEEMS UNDERSTANDABLE THE MORE THAT'S MANUFACTURED IN THE US THE MORE JOBS THAT SHOULD BE CREATED AT HOME BUT CORPORATE EXECUTIVES AND INTERNATIONAL BUSINESS EXPERTS SAY THAT IN A GLOBAL MARKETPLACE THE TAX CHANGES THAT THE ADMINISTRATION IS SEEKING ARE MYOPIC AND COSTLY IN THE END THEY ARGUE THE PROPOSALS COULD MAKE US COMPANIES LESS COMPETITIVE AND END UP COSTING MORE JOBS THAN THEY SAVE THE ADMINISTRATION'S POLICY AS EXPRESSED IN THESE TAX PROVISIONS IS THAT YOU CAN PRODUCE IN AMERICA AND THEN EXPORT ABROAD SAYS GARY HUFBAUER A FELLOW AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS AND FORMERLY THE DIRECTOR OF THE TREASURY DEPARTMENT'S INTERNATIONAL TAX STAFF I DON'T KNOW IF THAT VISION WAS CORRECT IN THE 1960S BUT IT'S SURE NOT CORRECT IN THE 1990S INDEED COMPANY OFFICIALS SAY THAT THEY LOCATE ABROAD NOT TO DODGE US TAXES BUT TO TAKE ADVANTAGE OF THE SAME LOW LABOR RATES AND RAW MATERIAL PRICES THAT THEIR EUROPEAN AND ASIAN RIVALS HAVE ACCESS TO MANY TIMES TOO TRANSPORTATION COSTS AND TARIFFS MAKE IT PROHIBITIVE TO TAP OFFSHORE MARKETS ALL THE WAY FROM HOME CORN FLAKES DON'T TRAVEL VERY WELL SAYS CHARLES ELLIOTT CHIEF FINANCIAL OFFICER OF KELLOGG CO WHICH HAS PLANTS IN 17 COUNTRIES THE BOTTOM LINE EXECUTIVES SAY IS THAT IT'S OFTEN IMPOSSIBLE TO DO BUSINESS IN A FOREIGN LAND WITHOUT A SIGNIFICANT PRESENCE THERE OVERSEAS OPERATIONS ARE THUS CRITICAL TO US EXPORTS A COMMERCE DEPARTMENT REPORT SHOWS THAT OF THE ROUGHLY 400 BILLION WORTH OF PRODUCTS EXPORTED FROM THE US IN 1990 MORE THAN 100 BILLION WENT TO THE OVERSEAS AFFILIATES OF US COMPANIES THE TAX PROPOSALS HIGHLIGHT AN APPARENT CONTRADICTION IN MR CLINTON'S ECONOMIC PHILOSOPHY HE FAVORS ARRANGEMENTS LIKE THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH IS SURE TO LEAD SOME US COMPANIES TO RELOCATE SOUTH OF THE BORDER STILL HE'S EVIDENTLY WARY OF WHAT LAWMAKERS AND LABOR LEADERS HAVE LONG DESCRIBED AS RUNAWAY PLANTS PERHAPS PROMPTED BY THE POPULIST RHETORIC OF ROSS PEROT MR CLINTON COMPLAINED ABOUT THE TREND LAST SUMMER AS A CANDIDATE AMERICAN COMPANIES MUST ACT LIKE AMERICAN COMPANIES AGAIN EXPORTING PRODUCTS NOT JOBS HE DECLARED UPON ACCEPTING THE DEMOCRATIC PRESIDENTIAL NOMINATION IT'S MINDBOGGLING TO ME HOW THE ADMINISTRATION COULD TALK ABOUT NAFTA OUT OF ONE SIDE OF ITS MOUTH AND THEN TALK ABOUT THESE TAX PROPOSALS OUT OF THE OTHER SAYS BOB PERLMAN VICE PRESIDENT OF TAXES FOR INTEL CORP THE COMPUTER CHIP MAKER EITHER IT'S A GLOBAL WORLD OR IT ISN'T THERE ARE AT LEAST TWO PROVISIONS IN THE CLINTON TAX PACKAGE THAT EXECUTIVES SAY REFLECT A MADEINAMERICA MENTALITY THE FIRST WOULD SLAP US TAXES ON CERTAIN INCOME THAT CURRENTLY IS SHIELDED FROM THE REACH OF THE INTERNAL REVENUE SERVICE UNDER CURRENT LAW INCOME EARNED OFFSHORE GENERALLY ISN'T TAXED BY THE US UNTIL THAT MONEY IS REPATRIATED TO SHAREHOLDERS TYPICALLY IN THE FORM OF DIVIDENDS THE CLINTON PLAN WOULD TAX A PORTION OF THE OFFSHORE INCOME WHEN COMPANIES DON'T REINVEST SUFFICIENT AMOUNTS IN THEIR ACTIVE FOREIGN OPERATIONS THERE'S A TEMPTATION FOR A COMPANY THAT'S IN A LOWTAX AREA ONCE IT HAS SPENT THE AMOUNT OF MONEY IT THINKS IT NEEDS FOR MANUFACTURING CAPACITY TO THEN KEEP THE PROFITS AND PUT THEM INTO PASSIVE INVESTMENTS TREASURY SECRETARY LLOYD BENTSEN SAYS IN AN INTERVIEW BUT US COMPANIES COUNTER THAT THEIR FOREIGN COMPETITORS ALREADY HAVE AN EVEN GREATER ABILITY THAN THEY DO TO DEFER TAXES ON INCOME EARNED ABROAD PILING UP THEIR PROFITS UNTIL THEY SPOT JUST THE RIGHT OPPORTUNITY TO EXPAND AN OFFSHORE FACTORY OR MAKE SOME OTHER SUCH MOVE PUT THE CLINTON PROPOSAL ON TOP OF THE EXISTING STRICTURES AND US COMPANIES ARE PUT AT EVEN MORE OF A DISADVANTAGE SAYS RANDALL WEISS OF THE ACCOUNTING FIRM DELOITTE & TOUCHE HE BELIEVES THAT HIS CLIENTS MAY BE PRESSED INTO MAKING ILLTIMED TRANSACTIONS SIMPLY TO KEEP FROM BEING TAXED BY THE IRS THE SECOND AND COMPANIES SAY EVEN MORE DAMAGING PROVISION IN THE CLINTON PLAN WOULD AFFECT THE WAY US MULTINATIONAL COMPANIES CAN USE THEIR FOREIGN TAX CREDITS THE PLAN WOULD LIMIT THE ABILITY OF COMPANIES TO UTILIZE THEIR CREDITS TO OFFSET ROYALTY INCOME DERIVED FROM THE LICENSING OF TRADEMARKS AND TECHNOLOGIES OVERSEAS MR BENTSEN MAINTAINS THAT THE EXISTING ROYALTY PROVISION GIVES COMPANIES LOCATING ABROAD AN ADVANTAGE OVER THOSE THAT CHOOSE TO KEEP THEIR TECHNOLOGY AT HOME WE'RE TRYING TO BALANCE THAT OFF HE EXPLAINS THIS EFFORT TO TREAT UNIFORMLY THE DOMESTIC AND FOREIGN OPERATIONS OF US COMPANIES IS KNOWN AMONG ECONOMISTS AS CAPITAL EXPORT NEUTRALITY BUT AMONG MULTINATIONAL COMPANIES IT'S KNOWN AS WRONGHEADED IN MANY SITUATIONS US COMPANIES ALREADY FACE A SIGNIFICANTLY HIGHER EFFECTIVE TAX RATE ON FOREIGN INCOME THAN WOULD A SIMILARLY SITUATED MULTINATIONAL BASED IN CANADA FRANCE GERMANY JAPAN THE NETHERLANDS OR THE UK ACCORDING TO A 1991 CASE STUDY CONDUCTED BY PRICE WATERHOUSE FOR THE NATIONAL CHAMBER FOUNDATION THE CLINTON PROPOSAL WOULD ONLY EXACERBATE THAT PROBLEM RJR NABISCO HOLDINGS CORP FOR INSTANCE FIGURES ITS TAX BILL WOULD RISE ABOUT 25 MILLION A YEAR IF THE ROYALTY PROVISION TOOK EFFECTAND THAT'S AN ADDITIONAL COST OF FOREIGN OPERATIONS THAT MY COMPETITORS DON'T HAVE GRUMBLES JAY THOMAS PEARSON SENIOR VICE PRESIDENT OF TAXATION FOR THE CONSUMERPRODUCTS GIANT WHICH HAS CIGARETTE AND FOOD FACTORIES STRETCHING FROM GERMANY TO MALAYSIA ONE WAY AROUND THE CLINTON ROYALTY PROVISION IRONICALLY MAY BE FOR US COMPANIES TO DO THEIR RESEARCH AND DEVELOPMENT ABROAD IF THE ADMINISTRATION'S PLAN BECAME LAW I'D ENCOURAGE PEOPLE TO MAKE THEIR NEXT R&D INVESTMENT OUTSIDE THE UNITED STATES SAYS KEVIN CONWAY THE DIRECTOR OF TAXES FOR UNITED TECHNOLOGIES CORP WHICH IS PART OF A COALITION OF COMPANIES LOBBYING TO KILL THE PLAN IF WE DID OUR R&D IN CANADA WE'D GET A LOT OF TAX BREAKS UP THERE NOTES KELLOGG'S MR ELLIOTT 9303250135 930325 OTC FOCUS NASDAQ STOCKS EDGE LOWER AS OUTLOOK FOR MERCK PUTS PRESSURE ON DRUG SECTOR BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCK PRICES SUCCUMBED TO WEAKNESS IN THE DRUG SECTOR ERASING AN EARLY CLIMB THE NASDAQ COMPOSITE INDEX DROPPED 068 POINT OR 010 TO FINISH AT 67436 ADVANCING STOCKS TRAILED DECLINERS 1212 TO 1399 STOCK PRICES ROSE THROUGH MUCH OF THE MORNING THE DOW JONES INDUSTRIAL AVERAGE CLIMBED NEARLY 20 POINTS BUT SEVERAL SPURTS OF PROGRAM TRADING TOOK THEIR TOLL LATER IN THE DAY THE INDUSTRIALS ENDED DOWN 1648 POINTS OR 048 AT 344538 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 035 POINT OR 014 TO 24691 ANALYSTS SAID TRADING SEEMED MOTIVATED MORE BY THE IMMINENT END OF THE FIRST QUARTER THAN BY ANY DRAMATIC NEWS EVENTS INVESTORS WAITED OUT THE POLITICAL STORM IN RUSSIA AND MOSTLY ADOPTED A CONSERVATIVE STANCE KEEPING STOCK PRICES CONFINED TO A TIGHT RANGE ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE SAID PEOPLE ARE EDGY ON THE RUSSIA SITUATION BUT THERE'S STILL TONS OF MONEY OUT THERE TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME ROSE TO 203484200 SHARES FROM 196213100 SHARES TUESDAY TOM CONNELL HEAD OF NASDAQ TRADING AT GRUNTAL & CO SAID OTC STOCKS ARE MIRRORING THE BIG BOARD IN THE ABSENCE OF ANY MARKETMOVING NEWS HE SAID SMALL CAP STOCKS ALSO FELL AS COMPUTERGUIDED PROGRAM TRADING KICKED IN DURING THE AFTERNOON MR ANTOLINI NOTED THAT TECHNOLOGY STOCKS WHICH HAD GAINED STRENGTH ALL DAY RALLIED EVEN MORE NEAR THE SESSION'S CLOSE HE SAID MANY PLAYERS ARE SELLING OUT OF MEDICAL STOCKS AND BUYING INTO TECHNOLOGY ISSUES ON THE PREMISE THAT TECHNOLOGY ISSUES WILL GIVE THEM A QUICKER RETURN ON THEIR MONEY A NEGATIVE EARNINGS OUTLOOK FROM BIG BOARDLISTED MERCK & CO WHICH TUMBLED 2 1/4 TO 34 3/4 PUT PRESSURE ON PHARMACEUTICAL STOCKS AND SELLING CONTINUED IN THE SECTOR THROUGHOUT THE SESSION MERCK SAID IT EXPECTS SLOWER EARNINGS GROWTH FOR THIS YEAR AND PLANS TO CUT ITS WORK FORCE THE COMPANY ALSO SAID IT WILL TAKE AN EXTRAORDINARY CHARGE DUE TO THE COSTS OF REDUCING STAFF OTHER MEDICALRELATED ISSUES ALSO SLID TAKECARE A CONCORD CALIF HEALTH MAINTENANCE ORGANIZATION OWNER WAS DOWN 1 1/4 TO 31 3/4 STRYKER A SURGICAL AND MEDICAL PRODUCTS CONCERN LOST 1 3/8 TO 23 3/8 AND US HEALTHCARE WAS OFF 1 1/4 TO 40 1/4 IMMUNEX IMPROVED 1/2 TO 41 1/4 AFTER THE THERAPEUTIC IMMUNOLOGICAL PRODUCTS COMPANY SAID IT RECEIVED APPROVAL FROM A EUROPEAN COMMUNITY PANEL FOR ITS WHITE BLOOD CELL STIMULATING FACTOR PRODUCT THAT PRODUCT IS MARKETED IN THE US UNDER THE NAME LEUKINE SOMATOGEN ROSE 7/8 TO 11 THE BOULDER COLO THERAPEUTIC PRODUCTS COMPANY SAID CLINICAL DATA FROM INITIAL STUDIES OF ITS RECOMBINANT HUMAN HEMOGLOBIN SHOWED PROMISE THE TECHNOLOGY SECTOR WAS LED BY INTEL WHICH GAINED 1 3/4 TO 114 1/4 MICROSOFT ADDED 3 1/8 TO 86 1/4 SYNOPSYS ROSE 1 7/8 TO 28 7/8 AND DELL COMPUTER ROSE 1 3/8 TO 35 1/4 APPLE COMPUTER ROSE 1 TO 53 3/4 THE CUPERTINO CALIF COMPANY LAUNCHED ITS PLANS FOR THE FIRST IN A LINE OF CDROMBASED MULTIMEDIA PRODUCTS FROM ITS PERSONAL INTERACTIVE ELECTRONICS DIVISION THE COMPANY ALSO SAID ITS CLARIS CORP SUBSIDIARY HAS UNVEILED CLARISWORKS VERSION 20 HEADING THE MOST ACTIVES LIST ORACLE SYSTEMS A REDWOOD CITY CALIF SOFTWARE CONCERN GAINED 7/8 TO 35 3/4 AFTER REPORTING IMPROVED THIRDQUARTER EARNINGS LATE TUESDAY FOR THE QUARTER ENDED FEB 28 THE COMPANY HAD NET INCOME OF 20 CENTS A SHARE COMPARED WITH 12 CENTS A SHARE A YEAR EARLIER LOTUS DEVELOPMENT ADDED 3/4 TO 26 3/4 AFTER IT UNVEILED ITS LOTUS NOTES RELEASE 3 AN ENHANCED VERSION OF ITS CLIENT/SERVER APPLICATIONS ENVIRONMENT FOR WORK GROUPS RESTAURANT CHAIN AU BON PAIN FELL 1 5/8 TO 22 1/8 SMITH BARNEY DOWNGRADED ITS RATING ON THE STOCK TO HOLD FROM BUY 9303250134 930325 US GROUP SETS UP JOINT VENTURE TO OPEN BANK IN KAZAKHSTAN DALLAS A GROUP OF US INVESTORS SAYS IT FORMED A JOINT VENTURE THAT WILL OPEN A COMMERCIAL BANK IN THE FORMER SOVIET UNION THE GROUP HEADED BY NORTHPARK NATIONAL CORP AND TEXAS CENTRAL BANK BOTH OF DALLAS AND INCLUDING A GROUP OF PRIVATE INVESTORS SAID IT WILL OWN 50 OF THE NEW VENTURE TO BE CALLED THE BANK OF TEXAS & KAZAKHSTAN THE REMAINING STAKE WILL BE HELD BY A GROUP OF INVESTORS IN KAZAKHSTAN INCLUDING TENGIZ NEFTEGAS A LARGE OIL AND GAS COMPANY THE FULLSERVICE BANK WILL BE LOCATED IN THE KAZAKHSTAN CAPITAL OF ALMAATA AND IS SCHEDULED TO OPEN IN MIDMAY SAID GREG STUDER OF NORTHPARK NATIONAL WHO WILL BE CHAIRMAN OF THE NEW BANK'S BOARD IN NOVEMBER NORTHPARK NATIONAL AGREED TO BE ACQUIRED BY COMERICA INC THE ACQUISITION HASN'T BEEN COMPLETED 9303250133 930325 CRAY RESEARCH GETS NASA ORDER EAGAN MINN CRAY RESEARCH INC SAID THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S GODDARD SPACE FLIGHT CENTER ORDERED A CRAY C98 SUPERCOMPUTER TERMS WEREN'T DISCLOSED BUT SUCH SYSTEMS WHICH HAVE AS FEW AS FOUR PROCESSORS INSTEAD OF THE USUAL 16 SELL FOR 12 MILLION OR MORE THE NEW SYSTEM WILL BE USED IN RESEARCH INTO GLOBAL CLIMATE CHANGE ATMOSPHERIC AND OCEANIC MODELING AND ASTROPHYSICS AMONG OTHER THINGS THE SUPERCOMPUTER MANUFACTURER SAID 9303250132 930325 INSTITUTIONS SHOWED POOR MARKET TIMING IN THE LATEST WEEK NEW YORK INSTITUTIONAL INVESTORS WERE POOR MARKET TIMERS LAST WEEK INSTITUTIONS POURED BILLIONS INTO TAXABLE MONEY MARKET FUNDS IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER EVEN THOUGH YIELDS CONTINUE TO EASE ON THOSE SHORTTERM INVESTMENTS INSTITUTIONS ALSO PULLED MONEY OUT OF TAXEXEMPT MONEY MARKET FUNDS WHICH SAW A GAIN IN THEIR YIELDS ASSETS OF THE 573 TAXABLE MONEY MARKET FUNDS TRACKED BY IBC/DONOGHUE'S ROSE 44 BILLION TO 4888 BILLION FROM THE PREVIOUS WEEK'S 4844 BILLION THOSE TAXABLE FUNDS WERE PAYING INVESTORS AN AVERAGE SEVENDAY COMPOUND YIELD OF 268 DOWN FROM 269 THE WEEK EARLER COMPOUND YIELDS ASSUME INVESTORS REINVEST DIVIDENDS IT WAS THE THIRD DECLINE IN AS MANY WEEKS ASSETS OF FUNDS OPEN ONLY TO INSTITUTIONS ALSO CLIMBED TO 1716 BILLION FROM 1667 BILLION AN INCREASE OF 49 BILLION IN THE LATEST WEEK BUT INDIVIDUALS WITHDREW 458 MILLION FROM THE 423 FUNDS OPEN TO THEM THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS SLID TO 265 FROM 266 ACCORDING TO MONEY FUND REPORT WHILE THE AVERAGE 30DAY SIMPLE YIELD EASED TO 267 FROM 269 THE AVERAGE 30DAY COMPOUND YIELD WENT DOWN TO 271 FROM 272 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS WAS UNCHANGED AT 60 DAYS ASSETS OF THE 312 TAXEXEMPT MONEY FUNDS TRACKED BY MONEY FUND REPORT FELL 5458 MILLION TO 1022 BILLION IN THE LATEST WEEK DESPITE CLIMBING YIELDS INSTITUTIONAL INVESTORS PULLED ABOUT 2622 MILLION OUT OF TAXFREE MONEY FUNDS WHILE INDIVIDUAL INVESTORS WITHDREW 2836 MILLION IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXFREE FUNDS ROSE TO 192 FROM 181 IN THE WEEK THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 264 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 265 FOR SOMEONE PAYING 31 IN TAXES AVERAGE MATURITY OF THE TAXFREE FUNDS FELL TWO DAYS TO 52 DAYS 9303250131 930325 CBT SELLS FIVE OFFICES OF UNIT PADUCAH KY CBT CORP SAID IT SOLD FIVE TENNESSEE OFFICES OF ITS CONSUMER LOAN COMPANY FOR A GAIN OF 332000 OR 13 CENTS A SHARE THE BANK HOLDING COMPANY WILL BOOK THE GAIN IN THE FIRST QUARTER IN LAST YEAR'S FIRST QUARTER CBT EARNED 19 MILLION OR 73 CENTS A SHARE ADJUSTED FOR A 3FOR2 STOCK SPLIT CBT WANTS TO FOCUS ITS FIDELITY CREDIT CORP IN KENTUCKY 9303250130 930325 CREDIT RATINGS GOODYEAR TIRE & RUBBER CO AKRON OHIO MOODY'S INVESTORS SERVICE INC SAID IT RAISED ITS RATINGS ON 600 MILLION OF THIS COMPANY'S DEBT GOODYEAR'S SENIOR UNSECURED DEBT WAS RAISED TO BAA3 FROM BA1 THE COMPANY'S COMMERCIAL PAPER RATING WAS INCREASED TO PRIME3 FROM NOT PRIME MOODY'S CITED THE TIRE MAKER'S IMPROVING PROFITABILITY AND STRONGER COMPETITIVE POSITION AND MORE FAVORABLE CONDITIONS IN THE TIRE INDUSTRY 9303250129 930325 MEDICINE DRUG FIRMS PLAN BLITZ TO COUNTER CLINTON MOVES BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SEVEN MAJOR PHARMACEUTICAL COMPANIES HAVE EMBARKED ON A 2 MILLION 90DAY NATIONAL PUBLIC RELATIONS CAMPAIGN BLITZ TO COUNTER EFFORTS BY THE WHITE HOUSE TO SHARPLY LIMIT PRESCRIPTION DRUG PRICE INCREASES THE COMPANIES LED BY MONSANTO CO'S GD SEARLE UNIT LAST MONTH HIRED THE HIGHPOWERED WASHINGTON PUBLIC RELATIONS FIRM OF POWELL TATE WHICH IS LED BY JODY POWELL THE FORMER PRESS SECRETARY TO PRESIDENT JIMMY CARTER UNDER A PLAN DEVELOPED BY POWELL TATE THE COMPANIES AND THEIR TOPLEVEL EXECUTIVES ARE ARGUING THAT THE DRUGMAKING INDUSTRY IS BEING UNFAIRLY TARRED BY THE CLINTON ADMINISTRATION THE CAMPAIGN IS UNIQUE IN THAT IT IS BEING RUN AT THE BEHEST OF JUST A HANDFUL OF THE INDUSTRY'S COMPANIES PARTLY REFLECTING CONFLICTS AMONG DRUG MAKERS OVER INITIATIVES PUT FORTH BY THE CLINTON ADMINISTRATION MOST ESPECIALLY THE DRUG COMPANIES ARE SPLIT OVER WHETHER TO BACK WHITE HOUSE EFFORTS TO LIMIT PRICE INCREASES TO THE RATE OF INFLATION BUT THE INDUSTRY IS FURTHER DIVIDED ON HOW BEST TO AFFECT PUBLIC POLICY IN THE PAST THE 100MEMBER PHARMACEUTICAL INDUSTRY HAS RELIED ON ITS WASHINGTONBASED TRADE GROUP THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION TO ARGUE ITS CASE TO GOVERNMENT OFFICIALS AND THE PRESS HOWEVER MANY OF THE PMA'S MEMBERS HAVE BEEN UPSET OF LATE THAT THE PMA HAS BEEN UNABLE TO KEEP THE INDUSTRY IMAGE FROM BEING TARNISHED IN A MEMO FROM POWELL TATE TO THE DRUG COMPANIES THE PUBLIC RELATIONS FIRM SAID THE PLAN'S OBJECTIVE IS TO SHAPE THE CLIMATE BY FORCING POLICYMAKERS TO CONSIDER THE ADVERSE CONSEQUENCES OF PUNITIVE ACTIONS AGAINST THE INDUSTRY POLICYMAKERS MUST UNDERSTAND THAT ADOPTING THE WRONG SOLUTIONS BY ACTING IN HASTE WILL DAMAGE AMERICAN HEALTH CARE THE CLINTON ADMINISTRATION HAS SCORED THE PHARMACEUTICAL INDUSTRY OF LATE CHARGING THAT DRUG COMPANIES HAVE CAUSED ECONOMIC HARDSHIPS BY SHARPLY INCREASING DRUG PRICES THE WHITE HOUSE HAS SUGGESTED THAT DRUG COMPANIES SHOULD LIMIT FUTURE PRICE RISES TO THE RATE OF INFLATION AND ABOUT 10 DRUG COMPANIES HAVE PLEDGED TO DO SO EVEN SO MANY DRUG COMPANY OFFICIALS HAVE COMPLAINED THAT THE WHITE HOUSE CHARGES OF PRICEGOUGING ARE WRONG IN RECENT WEEKS THE COMPANY OFFICIALS HAVE BEEN WORKING ON WAYS TO COMMUNICATE THIS TO THE PUBLIC THE COALITION OF SEVEN COMPANIES CALLING ITSELF RX PARTNERS IS TRYING TO TAKE THE INITIATIVE TO GET OUT THE WORD CONTRARY TO CRITICISM OF THE GOOD THIS INDUSTRY DOES SAID CAROLYN GLYNN A VICE PRESIDENT FOR PUBLIC AFFAIRS AT HOFFMANNLA ROCHE INC A UNIT OF SWISS DRUG MAKER ROCHE HOLDING LTD THIS IS THE KIND OF THING WE SHOULD HAVE DONE A LONG TIME AGO IN ADDITION TO GD SEARLE AND HOFFMANLA ROCHE THE COALITION ALSO INCLUDES GLAXO HOLDINGS PLC OF THE UK UPJOHN CO KALAMAZOO MICH WARNERLAMBERT CO MORRIS PLAINS NJ ELI LILLY & CO INDIANAPOLIS IND AND BRISTOLMYERS SQUIBB CO NEW YORK CONSPICUOUSLY ABSENT FROM THIS GROUP ARE SEVERAL OF THE DRUG INDUSTRY'S MOST PRESTIGIOUS AND POWERFUL MEMBERS INCLUDING MERCK & CO PFIZER INC AMERICAN HOME PRODUCTS CORP AND JOHNSON & JOHNSON OFFICIALS AT THOSE COMPANIES SAID THEY WERE ASKED TO JOIN THE NEW COALITION BUT DECLINED FOR VARIOUS REASONS WHILE THE COMPANIES WHO DECLINED TO JOIN WON'T PUBLICLY CRITICIZE THE RX PARTNERS GROUP SEVERAL TOP COMPANY EXECUTIVES SAID THEY STAYED OUT OF THE COALITION IN ORDER TO PURSUE THEIR OWN LOBBYING AGENDAS A SPOKESMAN AT THE PMA ALSO DOWNPLAYED THE COALITION'S INDEPENDENT CAMPAIGN SAYING WE WELCOME ALL THE HELP WE CAN GET BUT ACCORDING TO ONE TOP INDUSTRY OFFICIAL NOT IN THE COALITION THE SEVEN DRUG COMPANIES CLEARLY DON'T THINK THE PMA IS DOING AN ADEQUATE JOB FOR THEIR PART WHITE HOUSE OFFICIALS DEALING WITH THE PHARMACEUTICAL INDUSTRY APPEAR BEMUSED BY THE AGGRESSIVE CAMPAIGN ROBERT BOORSTIN A SPOKESMAN FOR THE ADMINISTRATION'S HEALTHCARE TASK FORCE SAID PUBLIC RELATIONS ISN'T WHERE THE INDUSTRY IS FALLING DOWN THE FACT REMAINS THAT PRESCRIPTION DRUG PRICES IN THIS COUNTRY ARE OUT OF CONTROL AND EVERYONE KNOWS IT MR BOORSTIN SAID NO AMOUNT OF PR CAN COVER UP THE REALITY IN ITS MEMO TO MEMBERS OF RX PARTNERS POWELL TATE SAID IT WILL LAUNCH A TARGETED GRASSROOTS EFFORT TO INFLUENCE THE DECISIONS OF KEY LAWMAKERS AND TO COUNTER THE ADMINISTRATION'S GRASSROOTS MACHINE POWELL TATE SAID THIS CAN BE ACCOMPLISHED WITH EDITORIAL PAGE ARTICLES DIRECT APPROACHES TO SELECT JOURNALISTS AND EFFORTS TO GET DRUG COMPANY EXECUTIVES ON NONTRADITIONAL FORUMS SUCH AS TALK RADIO AND TELEVISION SHOWS THE POWELL TATE STRATEGY ALSO SUGGESTED MEDIA TRAINING FOR TOP COMPANY EXECUTIVES ALREADY AS PART OF THIS CAMPAIGN GD SEARLE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SHELDON GILGORE RECENTLY APPEARED ON CBSTV'S MORNING NEWS SHOW POWELL TATE ALSO SAID RX PARTNERS SHOULD RECRUIT RESPECTED INFLUENTIAL AND/OR SYMPATHETIC THIRD PARTY ADVOCATES SUCH AS DOCTORS SCIENTISTS PATIENTS ECONOMISTS AND FORMER GOVERNMENT OFFICIALS TO MAKE THE INDUSTRY'S CASE ALTERNATIVES POWELL TATE ALSO STRONGLY SUGGESTED THAT THE GROUP DEMONSTRATE GOOD FAITH BY UNDERTAKING TANGIBLE ACTION THAT WOULD BE VIEWED AS CONSTRUCTIVE TO THE REFORM EFFORT IT ALSO SAID THE GROUP MUST PRESENT CREDIBLE ALTERNATIVE SOLUTIONS TO THE DRACONIAN PROPOSALS LIKELY FROM THE CLINTON ADMINISTRATION HOWEVER IN TELEPHONE INTERVIEWS NEITHER POWELL TATE NOR ANY OF THE COMPANIES IN RX PARTNERS IDENTIFIED ANY SUCH ACTION MR POWELL SAID IN AN INTERVIEW THAT THE CAMPAIGN IS DESIGNED MERELY TO EDUCATE THE PUBLIC ABOUT THE PHARMACEUTICAL INDUSTRY'S REAL ROLE IN THE CURRENT HEALTHCARE CRISIS MR POWELL SAID THAT MANY PEOPLE ARE UNAWARE THAT PRESCRIPTION DRUGS ONLY ACCOUNT FOR 6 OF THE NATION'S TOTAL HEALTH BILL THAT'S THE KIND OF THING WE WANT TO GET OUT THERE HE SAID WHEN PEOPLE SEE THE FACTS THEY REALIZE WHEN PEOPLE SAY DRUG COMPANIES ARE THE MAJOR PROBLEM IT IS A TOTAL MISPERCEPTION SAYS VN ANDY ANDERSON PRESIDENT OF SEARLE'S US OPERATION MEANWHILE SOME MEMBERS OF RX PARTNERS AND OTHER NONMEMBER COMPANIES HAVE JOINED IN SEVERAL OTHER EFFORTS TO LOBBY THE ADMINISTRATION SEVEN COMPANY EXECUTIVES FOR INSTANCE MET YESTERDAY WITH COMMERCE SECRETARY RONALD BROWN IN A MEETING SET UP BY NEW JERSEY'S GOV JIM FLORIO MANY BIG DRUG COMPANIES ARE BASED IN NEW JERSEY WHERE THE GOVERNOR IS UP FOR REELECTION THIS YEAR 9303250128 930325 POLITICS & POLICY RUSSIAN TURMOIL FORCES CLINTON TO EXPAND ROLE IN FOREIGN POLICY MAY COOL ARDOR FOR ARMS CUTS BY GERALD F SEIB AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BORIS YELTSIN ISN'T THE ONLY ONE FEELING THE WORLD SHIFT BENEATH HIS FEET THE TUMULT IN RUSSIA HAS CHANGED THE WORLD FOR PRESIDENT CLINTON AS WELL NO MATTER HOW MOSCOW'S GAME OF HIGHSTAKES CHICKEN TURNS OUT THE MOST OBVIOUS AND SOME SAY POSITIVE EFFECT IS THAT MR CLINTON HAS IN THE PAST FEW DAYS TAKEN PUBLIC CHARGE OF HIS OWN FOREIGN POLICY BEFORE NOW FOREIGN POLICY HAS BEEN ALMOST SUB ROSA OR DONE BY WARREN CHRISTOPHER OR DONE IN THE DEAD OF THE NIGHT OR DELEGATED TO A TASK FORCE SAYS INDIANA REPUBLICAN SEN RICHARD LUGAR A LEADING CONGRESSIONAL VOICE ON FOREIGN AFFAIRS THIS REALLY HAS DEMANDED NOT ONLY HIS ATTENTION BUT HIS VISIBILITY THE CHILLING REMINDER THAT MR YELTSIN AND HIS REFORMS ARE FRAGILE ALSO HAS PRODUCED MORE SUBTLE SUBSTANTIVE CHANGES EVEN IF MR YELTSIN SURVIVES THE RUSSIAN SCARE WILL REOPEN SOME DEBATES THE NEW ADMINISTRATION WOULD HAVE PREFERRED TO LEAVE CLOSED OR AT LEAST POSTPONE LAWMAKERS WHO ALREADY ARE WORRIED ABOUT PROPOSED DEFENSE CUTS INCLUDING SOME IN MR CLINTON'S OWN PARTY NOW WILL HAVE NEW AMMUNITION FOR THEIR ARGUMENTS ARMS REDUCTION AGREEMENTS WILL BE TRICKIER TO IMPLEMENT PARTICULARLY BECAUSE RUSSIA'S NUCLEAR NEIGHBOR UKRAINE COULD PROVE EVEN LESS WILLING TO LET GO OF ITS WEAPONS JITTERY STATES AROUND RUSSIA'S PERIPHERY ARE LIKELY TO PLEAD HARDER FOR WESTERN PROTECTION SOMETHING THE WEST WILL BE HARDPRESSED TO DELIVER AND RUSSIAN SUPPORT ON A HOST OF FOREIGNPOLICY QUESTIONS RANGING FROM YUGOSLAVIA TO IRAQ CAN'T BE ASSUMED AS READILY OF COURSE ALL THOSE EFFECTS WILL BE INFINITELY MORE PRONOUNCED IF MR YELTSIN IS PUSHED FROM POWER AND REPLACED BY ONE OF HIS LESSREFORMIST MORE NATIONALISTIC ENEMIES BUT EVEN IF HE WERE REPLACED BY A WOULDBE REFORMER ANY NEWCOMER WOULD HAVE TO GUARD HIS CONSERVATIVE FLANK CAREFULLY AND MR YELTSIN HIMSELF WILL HAVE TO LOOK OVER HIS SHOULDER MORE OFTEN IF HE SURVIVES THE CURRENT SCARE FOR MR CLINTON THE MOST OBVIOUS IMPACT IS LIKELY TO BE FELT IN THE DEBATE OVER DEFENSE SPENDING EVEN BEFORE THE RECENT POLITICAL CRISIS IN MOSCOW SUCH CLINTON ALLIES AS GEORGIA DEMOCRATIC SEN SAM NUNN AND OKLAHOMA REP DAVE MCCURDY WERE WARNING THAT DEFENSE BUDGETCUTTING FEVER WAS RUNNING TOO HIGH INDEED ON TUESDAY DURING THE THROES OF THE RUSSIAN UNCERTAINTY THE SENATE ADOPTED AN AMENDMENT SEN NUNN OFFERED THAT WAS DESIGNED TO SPECIFY THAT DEFENSE WON'T BE CUT ANY FURTHER THAN PLANNED TO FINANCE DOMESTIC SPENDING A LOT OF PEOPLE WHO ARE ALREADY FIGHTING THE CUTS WILL USE THE ARGUMENT THAT THE SOVIET THREAT IS COMING BACK SAYS BARRY POSEN A SPECIALIST IN NATIONAL SECURITY AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY IT IS A NOTION MR POSEN DISPUTES AT MINIMUM HE SAYS IT WOULD TAKE THE RUSSIANS AT LEAST TWO OR THREE YEARS TO PUT THEIR MILITARY FORCE BACK TOGETHER ASSUMING THEIR IMPOVERISHED PUBLIC WOULD BE WILLING TO PAY THE ECONOMIC PRICE AND EVEN THEN HE SAYS THE WARSAW PACT IS GONE FOREVER STILL THE RUSSIAN SCARE WILL GIVE AN OPENING TO THOSE WORRIED ABOUT BOTH THE SYMBOLISM AND LONGTERM IMPACT OF DEFENSE REDUCTIONS MR CLINTON ISN'T LIKELY TO SHIFT HIS EXISTING PLAN FOR CUTS RATHER THE EFFECT IS MORE LIKELY TO BE SEEN IN A REDUCED APPETITE AMONG SOME OF HIS FELLOW DEMOCRATS TO TAKE EVEN MORE MONEY OUT OF DEFENSE SIMILARLY THE RUSSIAN UNREST IS PROMPTING SOME LAWMAKERS TO URGE CAUTION IN DRAWING DOWN TROOP LEVELS IN EUROPE TOO FAST THESE LAWMAKERS ARGUE THAT A SIGNIFICANT US TROOP PRESENCE IN EUROPE REMAINS A SYMBOLICALLY IMPORTANT BULWARK AGAINST INSTABILITY IN A TIME OF TENSION WE SHOULD SHOW A BOTTOM LINE IN EUROPE WHICH WOULD FORCE THE OTHER EUROPEAN NATIONS TO KEEP THEIR OWN STRENGTH AT A MODERATELY HIGH LEVEL SAYS REP IKE SKELTON A MISSOURI DEMOCRAT WHO IS A SENIOR MEMBER OF THE ARMED SERVICES COMMITTEE YOU'LL NOTICE IN RECENT DAYS THE VARIOUS COUNTRIES OVER THERE CUTTING RIGHT AND LEFT THIS WILL CAUSE EVERYBODY TO REEXAMINE THE BOTTOM LINE OF MORE IMMEDIATE CONCERN TO MR CLINTON IS THE PROSPECT THAT THE POLITICAL UPHEAVAL IN MOSCOW COULD COMPLICATE THE CRUCIAL TASK OF CORRALLING AND DISMANTLING THE OLD SOVIET NUCLEAR ARSENAL EVEN BEFORE LAST WEEK'S STANDOFF THE BIG STRATEGIC ARMS REDUCTION ACCORD NEGOTIATED BETWEEN WASHINGTON AND MOSCOW LAST YEAR WAS IN A PERILOUS STATE RUSSIA'S PARLIAMENT WAS REFUSING TO RATIFY IT UNTIL NEIGHBORING UKRAINE CARRIES OUT ITS PROMISES TO TURN OVER THE OLD SOVIET STRATEGIC WEAPONS ON ITS SOIL NOW THERE IS NEW CONCERN THAT THE UKRAINIANS WHO WERE ALREADY LESS THAN ENTHUSIASTIC ABOUT TURNING THEIR NUCLEAR ARMS OVER TO THEIR BIG NEIGHBOR AND RIVAL WILL BE EVEN MORE CHARY NOW THEY ARE LIKELY TO ARGUE THAT THE INFIGHTING IN MOSCOW PROVES THAT RUSSIA IS UNSTABLE AND THEREFORE A THREAT TO THEM I DON'T THINK THE UKRAINIANS ARE GOING TO COOPERATE NOW WARNS BRENT SCOWCROFT WHO WAS PRESIDENT BUSH'S NATIONAL SECURITY ADVISER THE UPHEAVAL IN MOSCOW IS SENDING SHIVERS THROUGHOUT THE OLD SOVIET EMPIRE MR YELTSIN WAS DELUGED THIS WEEK WITH ENDORSEMENTS FROM BULGARIA GEORGIA AND EVEN UKRAINE A CLEAR SIGN OF JUST HOW NERVOUS THE PROSPECT OF A CHANGE IN MOSCOW IS MAKING EVERYONE THE US HAS SO FAR MANAGED TO BRUSH OFF PLEAS REQUESTS AND DEMANDS FOR SECURITY GUARANTEES FROM THE EAST EUROPEANS THE DRUMBEAT WILL ALMOST CERTAINLY INCREASE NOW BUT AT A TIME OF SHRINKING DEFENSE BUDGETS AND A GROWING PREOCCUPATION WITH DOMESTIC AFFAIRS IN EUROPE AS WELL AS THE US THERE IS EVEN LESS OF A CHANCE THE WEST WILL OBLIGE THAT COULD MEAN NOT ONLY A LOSS OF PRESTIGE FOR THE WEST BUT HEIGHTENED NERVOUSNESS ALL AROUND A WEAKENED MR YELTSIN COULD ALSO PROVE TO BE A FAR LESS RELIABLE PARTNER AT THE UNITED NATIONS AND MORE GENERALLY IN SETTLING INTERNATIONAL CONFLICTS OVER THE PAST COUPLE OF YEARS THE US HAS COME TO DEPEND ON RUSSIAN SUPPORT ON A HOST OF ISSUES INCLUDING THE MIDDLE EAST PEACE PROCESS IMPOSING SANCTIONS ON IRAQ AND TRYING TO NEGOTIATE AN END TO THE WAR IN BOSNIA BUT MR YELTSIN'S CRITICS ARE ACCUSING HIM OF SELLING OUT TO THE WEST AND PRESIDENT CLINTON COULD WELL FIND HIMSELF WEIGHING THE RELATIVE MERITS OF RUSSIAN SUPPORT IN BOSNIA OR IRAQ VS THE DANGERS OF WEAKENING MR YELTSIN FURTHER WITH A CLINTONYELTSIN SUMMIT SLIGHTLY MORE THAN A WEEK AWAY MR CLINTON SAID IN AN INTERVIEW WITH CBS NEWS THAT HE SPENT ABOUT 30 OF HIS TIME YESTERDAY DEALING WITH RUSSIA IN THE TELEVISED INTERVIEW HE MENTIONED THE POSSIBILITY OF INCREASED FOOD AID SUPPORT FOR THE PRIVATIZATION OF RUSSIAN ENTERPRISES AND HELP FOR MODERNIZING THE ENERGY SECTOR MR CLINTON SAY AIDES CAME TO OFFICE CONVINCED THAT FAR MORE NEEDED TO BE DONE FOR RUSSIA DESPITE THE US PUBLIC'S DISLIKE OF FOREIGN AID CLINTON AIDES HOPED THAT THE POLITICAL FIGHT COULD BE POSTPONED AT LEAST UNTIL AFTER MR CLINTON'S BUDGET PLAN WAS PASSED AND THAT SECRETARY OF STATE CHRISTOPHER OR OTHERS RATHER THAN THE PRESIDENT HIMSELF COULD LEAD THE BATTLE BUT THE PRESIDENT HAS NOW PLUNGED INTO THAT BATTLE HIMSELF SPEAKING AFTER HIS MEETING WITH RUSSIAN FOREIGN MINISTER ANDREI KOZYREV HE DECLARED THAT PRESERVING DEMOCRACY IN RUSSIA WILL SAVE THE AMERICAN PEOPLE BILLIONS OF DOLLARS IN MONEY WE DON'T HAVE TO SPEND MAINTAINING A NUCLEAR ARSENAL HE ADDED IT'S A GOOD INVESTMENT FOR AMERICA 9303250127 930325 GERMAN AUTO OUTPUT DROPS FRANKFURT GERMANY GERMAN PASSENGERCAR PRODUCTION IN FEBRUARY SANK BY 125335 VEHICLES OR 29 TO 305500 VEHICLES FROM THE LIKE PERIOD A YEAR EARLIER ACCORDING TO THE GERMAN AUTOMOBILE ASSOCIATION OUTPUT OF TRUCKS UNDER SIX TONS FROM GERMAN FACTORIES PLUNGED BY 7000 VEHICLES OR 36 TO 12400 TOTAL VEHICLE PRODUCTION FROM THE GERMAN MOTOR INDUSTRY INCLUDING TRUCKS TRAILERS AND ALL FORMS OF MOTORIZED VEHICLES FELL 30 TO 326200 FROM 463331 9303250126 930325 GM ANNUAL REPORT FORGOES USUAL GLITZ WITH PLAINTIVE PLEA FINANCIAL DATA ARE TELLING BUT SO ARE THE APPEALS TO UNIONS AND WORKERS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP IS CAPPING A YEAR OF UNPRECEDENTED CHANGE WITH AN AUSTERE NONONSENSE 1992 ANNUAL REPORT THAT IS ITSELF A RADICAL BREAK WITH RECENT TRADITION ON THE COVER THE CUSTOMARY COLOR PHOTOGRAPH OF A GLITZY NEW CAR IS DROPPED IN FAVOR OF A DECLARATION SIGNED BY THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE JOHN F SMITH JR SAYING GM IS ACCELERATING ITS PROGRESS IN STREAMLINING OPERATIONS WE REALIZE THE URGENCY OF CHANGE AND WILL NOT LET THIS OPPORTUNITY SLIP BY INSIDE MR SMITH DELIVERS A STRAIGHTFORWARD REVIEW OF GM'S FINANCIAL CONDITION IN A LETTER TO SHAREHOLDERS AND MAKES PLEAS FOR HELP FROM GOVERNMENT UNIONS AND EMPLOYEES THAT STAND IN SHARP CONTRAST TO THE GM OF OLD WHICH RARELY ACKNOWLEDGED WEAKNESS MR SMITH TOOK OVER AS GM'S CEO LAST NOVEMBER AFTER A BOARDROOM REVOLT THAT FORCED THE RESIGNATION OF CHAIRMAN ROBERT C STEMPEL IN HIS LETTER MR SMITH REPEATS HIS VOW TO ACCELERATE EFFORTS TO PUT GM'S NORTH AMERICAN OPERATIONS IN THE BLACK THIS YEAR BEFORE INTEREST TAXES AND CHARGES FOR RETIREE MEDICAL BENEFITS GM'S DOMESTIC OPERATIONS HAD LOSSES OF 45 BILLION IN 1992 BEFORE INTEREST AND SPECIAL ITEMS GM IS HARD PRESSED TO ASK FOR LOYALTY AND COMMITMENT FROM ITS EMPLOYEES AT A TIME WHEN GM IS SHEDDING THOUSANDS MORE JOBS ON TOP OF THE 175000 JOBS IT HAS ELIMINATED IN THE PAST EIGHT YEARS MR SMITH ADDS NEVERTHELESS WE NEED AND I ASK FOR THE SUPPORT OF OUR EMPLOYES TO GET OUR NORTH AMERICAN OPERATIONS PROFITABLE THE POIGNANCY OF THAT PLEA IS UNDERSCORED BY A LETTER INSERTED IN THE REPORT THE LETTER INFORMS SHAREHOLDERS THAT AS YOU KNOW MR SMITH'S CHIEF COST CUTTER GROUP VICE PRESIDENT FOR PURCHASING J IGNACIO LOPEZ DE ARRIORTUA LEFT FOR RIVAL VOLKSWAGEN AG EARLIER THIS MONTH IN A SEPARATE THREEPARAGRAPH LETTER JOHN G SMALE THE NONEXECUTIVE CHAIRMAN OF GM'S BOARD DECLARES THERE IS A NEW SPIRIT AT GENERAL MOTORS AND ADDS THAT THIS ANNUAL REPORT IS A DRAMATIC DEPARTURE FROM PAST PRACTICES THAT DEPARTURE IS EVIDENT IN THE LOOK OF THE REPORT ITSELF LAST YEAR'S 24 PAGES OF COLOR PHOTOGRAPHS OF EXECUTIVES CARS AND HAPPY CUSTOMERS PRINTED ON SLICK MAGAZINESTYLE PAPER ARE REPLACED BY BLACKANDWHITE DOT ILLUSTRATIONS AND A SINGLE SIXPAGE FOLDOUT OF COLOR PICTURES 9303250125 930325 NATIONAL STEEL STOCK OFFERING MISHAWAKA IND NATIONAL STEEL CORP SAID IT COMPLETED ITS INITIAL PUBLIC OFFERING OF 10 MILLION CLASS B SHARES AT 14 EACH FOR NET PROCEEDS OF 130 MILLION NATIONAL WILL USE 68 MILLION TO RETIRE HALF ITS SERIES B PREFERRED STOCK THE REMAINDER WILL BE USED TO CONSTRUCT A PICKLE LINE WHICH CLEANS AND PREPARES STEEL FOR SHIPMENT NEAR THE END OF THE STEELMAKING PROCESS THE STEELMAKER HAS GRANTED THE UNDERWRITERS LED BY JP MORGAN SECURITIES INC AN OVERALLOTMENT OPTION OF 15 MILLION SHARES 9303250124 930325 JOHNSON CONTROLS BUYS FIRM MILWAUKEE JOHNSON CONTROLS INC SAID IT ACQUIRED URBAN ENGINEERING THE MECHANICAL AND ELECTRICAL OPERATIONS AND MAINTENANCE UNIT OF CHICAGOBASED DEVELOPER JMB/URBAN CO THE PRICE WASN'T DISCLOSED JOHNSON WHICH MAKES BUILDING CONTROLS BATTERIES AUTO SEATS AND PLASTIC CONTAINERS SAID THE ACQUISITION WHICH IS EXPECTED TO ADD 620 EMPLOYEES AND 55 MILLION IN ANNUAL REVENUE POSITIONS IT AS A LEADING SUPPLIER OF TECHNICAL FACILITY OPERATIONS AND MAINTENANCE TO THE US COMMERCIAL REAL ESTATE MARKET 9303250123 930325 CBOT SEAT IS SOLD CHICAGO THE CHICAGO BOARD OF TRADE SAID THAT A FULL MEMBERSHIP ON THE COMMODITY FUTURES EXCHANGE SOLD FOR 458000 THE CURRENT BID AND OFFER FOR FULL MEMBERSHIPS STAND AT 420000 AND 475000 RESPECTIVELY 9303250122 930325 JOHN FLUKE LAYS OFF WORKERS EVERETT WASH JOHN FLUKE MANUFACTURING CO SAID DECLINING ORDERS ABROAD HAVE FORCED THE COMPANY TO LAY OFF 125 PEOPLE TO TEMPORARILY CUT THE PAY OF ITS REMAINING 1946 WORKERS AND TO CLOSE CERTAIN FACILITIES THE MAKER OF ELECTRONIC TOOLS SAID ITS ORDER LEVELS SINCE THE START OF THE YEAR HAVE DROPPED BY MORE THAN 15 FROM A YEAR EARLIER IT BLAMED THE DECLINE ON LOWERTHANEXPECTED BUSINESS IN JAPAN CANADA AND EUROPE AND SAID IT EXPECTED LITTLE IMPROVEMENT FROM NOW UNTIL ITS FISCAL YEAR ENDS ON APRIL 30 JOHN FLUKE MADE ITS ANNOUNCEMENT AFTER THE CLOSE OF TRADING YESTERDAY IN AMERICAN STOCK EXCHANGE TRADING ITS SHARES FELL 125 CENTS TO CLOSE AT 30 9303250121 930325 ECONOMY BANKS OFFER NEW INVESTMENT PRODUCTS TO STEM CONSUMER EXODUS FROM CDS BY PETER PAE STAFF REPORTER OF THE WALL STREET JOURNAL BANKS ARE STEPPING UP MARKETING OF NEW INVESTMENT AND SAVINGS PRODUCTS IN HOPE OF STEMMING WHAT IS EXPECTED TO BE A LARGE EXODUS OF MONEY OUT OF CERTIFICATES OF DEPOSIT NEXT MONTH IN THE MOST RECENT MOVE CITICORP'S CITIBANK ANNOUNCED EARLIER THIS WEEK THAT IT WAS INTRODUCING A RETIREMENT DEPOSIT ACCOUNT WITH AN INTEREST RATE THAT IS TIED TO THE PERFORMANCE OF THE STOCK MARKET IN MAKING THE ANNOUNCEMENT CITIBANK SAID THE PRODUCT IS AIMED AT CONSUMERS WHO WANT THE SECURITY OF A FEDERALLY INSURED ACCOUNT WITH A POTENTIAL FOR A HIGHER ALBEIT RISKIER RETURN THE MOVE BY THE NATION'S LARGEST BANK FOLLOWS SIMILAR EFFORTS BY OTHER BANKS THAT HAVE LAUNCHED A FLURRY OF ALTERNATIVE PRODUCTS THAT THEY HOPE CAN HELP BANKS CONTAIN THE OUTFLOW FROM CDS SO FAR THE OUTFLOW HASN'T BEEN A BIG PROBLEM FOR BANKS BECAUSE MOST OF THE MONEY REMAINS AT THE INSTITUTION IN SAVINGS ACCOUNTS BUT BECAUSE THAT MONEY CAN BE WITHDRAWN AT ANY TIME BANKS WORRY THAT WHEN THE ECONOMY IMPROVES AND LOAN DEMAND PICKS UP THEY WILL NEED A MORE STABLE SOURCE OF FUNDS WHICH CDS PROVIDE IN ADDITION TO DIFFERENT TYPES OF CDS WITH A PROMISE OF HIGHER YIELDS BANKS ALSO HAVE PUSHED MUTUAL FUNDS AND ANNUITIES AS ALTERNATIVES TO CDS WHILE MUTUAL FUNDS WON'T HELP KEEP MONEY IN CDS IT DOES HELP BANKS MAINTAIN RELATIONS WITH CUSTOMERS WHO MAY BE NEEDED LATER AS LOAN DEMAND RISES WE'RE POSITIONING OURSELF FOR THE OPPORTUNITY THAT IS COMING UP A CITICORP SPOKESWOMAN CONCEDING THAT THE STOCK INDEX INSURED ACCOUNT IS ANOTHER WAY OF TRYING TO KEEP CD MONEY WITHIN THE BANK BECAUSE OF LOW INTEREST RATES PAID ON BANK CDS THE AVERAGE HAS DROPPED TO 323 FOR A ONEYEAR CD CONSUMERS HAVE BEEN INCREASINGLY DISSATISFIED WITH THE RETURNS AND HAVE STEADILY TRANSFERRED MONEY TO OTHER INVESTMENT AND SAVINGS PRODUCTS PARTICULARLY THOSE THAT ARE BEING OFFERED BY BROKERAGE FIRMS AS A RESULT GEORGE SALEM BANKING ANALYST FOR PRUDENTIAL SECURITIES ESTIMATES THAT 40 OF THE NEW FUNDS OBTAINED BY MUTUAL FUND COMPANIES LAST YEAR CAME FROM BANK DEPOSITS AND HE NOTES THAT THERE HAS BEEN NO CHANGE IN THE PACE OF THE RUNOFF FOR BANKS APRIL IS A PARTICULARLY IMPORTANT MONTH BECAUSE IT IS ONE OF THE BIGGEST PERIODS FOR ROLLOVER OF CDS THE OTHER IS OCTOBER BOTH ARE BIG MONTHS FOR ROLLOVER OF CDS BECAUSE AS INTEREST RATES ON CDS WERE DEREGULATED IN OCTOBER 1983 MANY INVESTORS POURED MONEY INTO ONEYEAR AND SIXMONTH CDS AND HAVE ROLLED THEM OVER EVER SINCE IN ADDITION A LOT OF INVESTORS' CASH FLOODED OUT OF THE STOCK MARKET RIGHT AFTER THE OCTOBER 1987 CRASH AND INTO CDS THERE ARE ABOUT 110 BILLION IN CDS ROLLING OVER IN APRIL SAID ROBERT HEADY PUBLISHER OF BANK RATE MONITOR A NORTH PALM BEACH FLA RESEARCH FIRM THAT TRACKS BANK FEES AND RATES THUS WHAT CITICORP AND OTHERS ARE DOING DOESN'T COME AS A SURPRISE IN THAT REGARD SHAWMUT NATIONAL CORP RECENTLY INTRODUCED ITS OWN FAMILY OF MUTUAL FUNDS AND BEGAN A TEST OF A STOCK MARKET CD SIMILAR TO CITICORP'S STOCK INDEX INSURED ACCOUNT THE RETURN ON THE SHAWMUT'S 11MONTH CD IS TIED TO THE PERFORMANCE OF THE STANDARD & POOR'S 500 INDEX OF STOCKS WE WANT TO RETAIN AND GROW OUR DEPOSIT SHARE A SHAWMUT SPOKESMAN SAID SURELY WE HAVE NOTICED SOME RUNOFF IN CDS CHASE MANHATTAN CORP ALSO ACKNOWLEDGING THE OUTFLOW OF CD MONEY SAID IT SUBSTANTIALLY INCREASED ITS MARKETING AND ADVERTISING BUDGET TO PROMOTE MUTUAL FUNDS AND ANNUITIES AND HAVE STARTED AN IRA PROMOTION GEARED TOWARD THE TAX PERIOD IT IS OFFERING A 50 PERCENTAGE POINT BONUS FOR CUSTOMERS WHO PURCHASE OR ROLLOVER AN IRA ACCOUNT THERE HAS BEEN A SIGNIFICANT RAMP UP IN MARKETING OF INVESTMENT PRODUCTS SAID KENNETH HOFFMAN PRESIDENT OF THE OPTIMA GROUP A BANK CONSULTING FIRM AND THE PRIMARY TARGET IS THE CD ACCOUNT WHILE CITICORP'S STOCK INDEX INSURED ACCOUNT SEEMS ATTRACTIVE AT FIRST MR HEADY WARNED THAT THE RETURNS MAY NOT BE AS HIGH SOME MAY BELIEVE THE FIVEYEAR TIME DEPOSIT ACCOUNT WOULD HAVE RETURNED 34 OF THE PRINCIPAL OR 3400 ON A 10000 DEPOSIT BASED ON THE PERFORMANCE OF THE STOCK MARKET BETWEEN 1987 AND 1992 THE COMPANY SAID BUT MR HEADY NOTED THAT A CUSTOMER WHO PURCHASED A NORMAL FIVEYEAR 10000 CD IN 1987 WOULD HAVE A 46 RETURN ON PRINCIPAL OR 4688 THIRTYFOUR PERCENT IS GREAT BUT THE AVERAGE FIVEYEAR CD OFFERED BY BANKS AND THRIFTS WOULD HAVE WON THE BALL GAME MR HEADY SAID NOTING ALSO THAT CITICORP'S PENALTY ON AN EARLY WITHDRAWAL 30 OF THE PRINCIPAL IN THE FIRST YEAR TAKES THE CAKE FOR BEING THE STIFFEST IN THE INDUSTRY 9303250120 930325 TECHNOLOGY ENZO BIOCHEM'S TEST FOR HIV FARMINGDALE NY A UNIT OF ENZO BIOCHEM INC HAS DEVELOPED A NEW TEST TO FIND THE HIV VIRUS IN BLOOD BY DETECTING VIRAL GENES RATHER THAN ANTIBODIES' REACTING TO THE VIRUS THE PATENTED NONRADIOACTIVE DIAGNOSTIC TECHNOLOGY AND THE TEST WERE DEVELOPED BY ENZO DIAGNOSTICS THE CURRENT ISSUE OF CLINICAL CHEMISTRY REPORTS THE RESULTS OF A JOINT VENTURE BETWEEN ENZO AND THE DIVISION OF HIV/AIDS OF THE US PUBLIC HEALTH SERVICE'S NATIONAL CENTER OF INFECTIOUS DISEASES CENTERS FOR DISEASE CONTROL IN ATLANTA 9303250119 930325 AMERICA WEST EXTENDS FARE CUT PHOENIX AMERICA WEST AIRLINES SAID IT EXTENDED ITS FARE SALE OF UP TO 30 DISCOUNT ON LEISURE FARES THE DATE BY WHICH TRAVEL MUST BE COMPLETED HAS BEEN EXTENDED TO SEPT 7 FROM THE PREVIOUS DATE OF JUNE 10 FOURTEENDAY ADVANCE PURCHASE TICKETS MUST BE PURCHASED BY APRIL 21 TO GET THE DISCOUNTS AS BEFORE THE REDUCED FARES REQUIRE A SATURDAY NIGHT STAY AND TRAVEL DURING OFFPEAK DAYS IS DISCOUNTED THE MOST THIS IS THE SIXTH EXTENSION OF THE SALE THAT BEGAN IN NOVEMBER 9303250118 930325 REVIEW & OUTLOOK EDITORIAL ASIDES DEREK'S BOW HE MADE IT DEREK SHEARER A KEY FRIEND OF BILL OXFORD A TOM HAYDEN ALLY AND A FORMER PLANNING COMMISSIONER OF SANTA MONICA CALIF DURING THAT CITY'S RADICAL PHASE HAS BEEN APPOINTED THE COMMERCE DEPARTMENT'S DEPUTY UNDERSECRETARY FOR ECONOMIC AFFAIRS THE LONGTIME UNTIL RECENTLY CHAMPION OF ECONOMIC DEMOCRACY A K A SOCIALISM WILL NOW OVERSEE THE CENSUS BUREAU AND OTHER KEY STATISTICAL UNITS THAT REPORT ON AMONG OTHER THINGS INCOME DISTRIBUTION BEST OF LUCK TO ALL INVOLVED 9303250117 930325 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FOR ALL THE TALK OF CREATING VIBRANT MARKET ECONOMIES IN EUROPE'S FORMER COMMUNIST COUNTRIES ECONOMIC POTENTIAL IN CHINA APPEARS TO BE FAR GREATER THE FIRST EMERGING MARKETS REPORT BY THE WORLD ECONOMIC FORUM AND THE INTERNATIONAL INSTITUTE FOR MANAGEMENT DEVELOPMENT IN SWITZERLAND RANKED COMPETITIVENESS OF 20 COUNTRIES BASED ON STRENGTHS SUCH AS IN MANAGEMENT FINANCE TECHNOLOGY INFRASTRUCTURE AND GOVERNMENT CHINA WHICH RANKED NO 1 IN FIVE OF EIGHT MEASURES IS EXPECTED TO BECOME ONE OF THE 10 BIGGEST TRADING NATIONS BECAUSE OF ITS RAPID EXPORT GROWTH BY CONTRAST THE FORMER CZECHOSLOVAKIA ALSO RANKED TOPS IN FIVE CATEGORIES BUT WAS BESTED BY CHINA IN OVERALL RATINGS EXCEPT FOR EASTERN GERMANY HUNGARY AND THE CZECH REPUBLIC FOREIGN INVESTMENT HASN'T RUSHED INTO EASTERN AND CENTRAL EUROPE WHERE PROBLEMS INCLUDE CREDIT ACCESS AND LIVING STANDARDS THE REPORT RATED AS MORE ATTRACTIVE SINGAPORE CHINA HONG KONG MALAYSIA THAILAND BRAZIL MEXICO ARGENTINA AND COLOMBIA AMONG EFFORTS TO IMPROVE THAILAND'S REGIONAL COMPETITIVENESS AND REVERSE A FOREIGNINVESTMENT DECLINE COMMERCE MINISTER UTHAI PIMCHAICHON PROPOSED MOVING THE COUNTRY'S CLOCKS AHEAD ONE HOUR JOINING THE TIME ZONE FOR SINGAPORE MALAYSIA AND HONG KONG THAI BUSINESSES COMPLAIN ABOUT REGIONAL COMMUNICATION PROBLEMS BECAUSE WORKING AND LUNCH HOURS DON'T COINCIDE NOT MENTIONED WITH 57 MILLION PEOPLE THAILAND HAS ONLY 15 MILLION PHONE LINES SOME THAIS SAID THE COUNTRY'S COMPETITIVE STANDING HAS MORE TO DO WITH PRODUCTIVITY THAN CLOCKS SOUTH KOREA'S ECONOMIC EXPANSION SLOWED TO A 13YEAR LOW OF 28 IN THE FOURTH QUARTER CONTINUING AN 18MONTH TREND BUT EASING FEARS ABOUT STAGNATING OR SHRINKING GROWTH A TOP OFFICIAL SAID THAT THE LATEST RATE WAS SLIGHTLY BETTER THAN THE GOVERNMENT EXPECTED BUT THAT 1993 GROWTH PROBABLY WOULD FALL SHORT OF LAST YEAR'S 48 EXPANSION PRIVATE FORECASTS PUT THE RISE IN GROSS NATIONAL PRODUCT BETWEEN 3 AND 5 THE ANNUAL PACE HAS BEEN SLOWING STEADILY SINCE PEAKING AT 13 IN 1987 THE EUROPEAN COMMUNITY COMMISSION WON'T DEMAND THAT SONY CORP OF JAPAN PAY MORE TO GERMAN AUTHORITIES FOR ITS DISPUTED PURCHASE OF A HUGE CENTRAL BERLIN SITE SAYING THE PRICE OF 101 MILLION MARKS 619 MILLION REFLECTED FAIR MARKET VALUE THE EC BEGAN THE INQUIRY IN DECEMBER 1991 TO DETERMINE WHETHER THE ELECTRONICS GIANT HAD RECEIVED AN ILLEGAL STATE SUBSIDY THROUGH A DISCOUNTED PRICE IN THE TRANSACTION THE EC FOUND ONLY A 5 DIFFERENCE BETWEEN THE SALE PRICE AND THE HIGHEST ESTIMATED VALUE OF THE POTSDAMER PLATZ LAND FOR SONY'S EUROPEAN HEADQUARTERS TO HELP END CHRONIC POWER SHORTAGES PHILIPPINE PRESIDENT FIDEL RAMOS APPROVED ENERGY DEVELOPMENT PROJECTS THESE INCLUDE REHABILITATING TWO BATAAN THERMAL POWER UNITS BUILDING THREE DIESELFIRED PLANTS AND INSTALLING TRANSMISSION LINES AND SUBSTATIONS MR RAMOS HAS SUBMITTED TO CONGRESS A BILL TO GIVE HIM POWERS FOR DEALING SPEEDILY WITH THE ENERGY CRISIS WHICH HAS HURT THE ECONOMY AND REPELLED POTENTIAL INVESTORS AND TO REORGANIZE THE STATEOWNED UTILITY PAPUA NEW GUINEA LAUNCHED A PRIVATIZATION PROGRAM BY APPROVING THE SALE OF 80 OF NIUGINI INSURANCE CORP THE GOVERNMENT WILL RETAIN 20 FOR A LATER SALE THE SOUTHWEST PACIFIC COUNTRY HOPES TO SELL OFF 22 BUSINESSES TO RAISE ONE BILLION KINA 104 BILLION PARTICIPATION BY FOREIGN INVESTORS HASN'T BEEN DECIDED FINLAND NORWAY AND SWEDEN WERE ALL CASUALTIES OF THE CURRENCY UPHEAVAL THAT SWEPT EUROPE LATE LAST YEAR BUT NORWAY'S REBOUND HAS SET THE PACE FOR SCANDINAVIA NORWAY EXPECTS TO WIDEN FURTHER THE ECONOMIC GAP WITH ITS NEIGHBORS THIS YEAR WHILE FINLAND AND SWEDEN REMAIN MIRED IN THE DEEPEST ECONOMIC DOWNTURNS SINCE THE 1930S AND BRACE FOR A THIRD YEAR OF SHRINKING GROSS NATIONAL PRODUCT NORWAY SEES A MODERATE RECOVERY TO 18 GROWTH THIS YEAR FROM A MEAGER 03 IN 1992 PRODUCING NEW JOBS ALONG THE WAY OTHER ECONOMIC INDICATORS POINT IN THE SAME DIRECTION THE NORWEGIAN KRONE FOR EXAMPLE HAS RECOUPED MOST OF THE VALUE LOST AFTER THE CURRENCY BEGAN FLOATING FREELY DEC 10 WHILE THE SWEDISH KRONA AND FINNISH MARKKAA REMAIN DEPRESSED MOREOVER WHILE STUBBORNLY HIGH INTEREST RATES CONTINUE TO THROTTLE RECOVERY PROSPECTS FOR FINNS AND SWEDES NORWEGIAN RATES HAVE BEEN EASED SHARPLY NORWAY'S POLITICAL STABILITY HAS ALLOWED THE RATE CUTS WITHOUT REKINDLING INFLATION OR UNDERMINING GLOBAL INVESTORS' CONFIDENCE IN THE KRONE BUT POLITICAL RIFTS IN FINLAND AND SWEDEN HAVE HURT STATE FINANCES AND THUS FINANCIAL MARKETS THE EUROPEAN COMMUNITY COMMISSION PROPOSED STARTING TALKS NEXT MONTH WITH NORWAY ON ITS APPLICATION TO JOIN THE TRADE BLOC IN 1995 INDIA NEXT MONTH WILL LAUNCH THREE SATELLITE CHANNELS ON THE STATERUN DOORDARSHAN TELEVISION NETWORK TO COUNTER CULTURAL EFFECTS OF OVERSEAS SATELLITE BROADCASTS PORTUGAL UNVEILED MEASURES INCLUDING A 175 BILLION CREDIT LINE TO HELP EXPORTERS WHO HAVE BEEN HURT BY RECENT TURBULENCE IN FOREIGNEXCHANGE MARKETS THAT MADE PRODUCTS FROM RIVAL COUNTRIES LESS EXPENSIVE 9303250116 930325 BUSINESS CONFIDENCE INDEX CLIMBED IN FIRST QUARTER NEW YORK THE CONFERENCE BOARD SAID US BUSINESS EXECUTIVES SHOWED INCREASED OPTIMISM IN THE EARLY PART OF 1993 THE BOARD'S MEASURE OF BUSINESS CONFIDENCE CLIMBED FIVE POINTS IN THE FIRST QUARTER TO 66 AFTER A SLIGHT DECLINE IN THE FOURTH QUARTER OF 1992 ALL COMPONENTS OF THE INDEX REGISTERED GAINS WITH PARTICULARLY STRONG IMPROVEMENT IN CHIEF EXECUTIVES' ASSESSMENT OF CURRENT CONDITIONS THAT INDEX ROSE TO 68 FROM 57 THE INDEX FOR EXPECTATIONS FOR THE NEXT SIX MONTHS ROSE SLIGHTLY TO 66 FROM 65 THE CONFIDENCE OF BUSINESS EXECUTIVES IS RISING DESPITE RECENT LULLS IN CONSUMER CONFIDENCE SAID CONFERENCE BOARD ECONOMIST JASON BRAM THIS ANOMALY IS LARGELY DUE TO ONGOING CORPORATE RESTRUCTURING AND DOWNSIZING WHICH ENHANCES PRODUCTIVITY AND PROFITS BUT DAMPENS JOB SECURITY AND THUS CONSUMER CONFIDENCE ANOTHER FACTOR MAY BE LOW INTEREST RATES WHICH TEND TO BE MORE BENEFICIAL FOR BUSINESSES THAN FOR CONSUMERS IN GENERAL THE BOARD SAID MANUFACTURERS PARTICULARLY OF DURABLE GOODS HAVE GROWN MARKEDLY MORE UPBEAT ABOUT THEIR OWN SECTORS IN TERMS OF CURRENT CONDITIONS AND FUTURE PROSPECTS HOWEVER EXECUTIVES IN CERTAIN SERVICE SECTORS SPECIFICALLY INSURANCE AND TRADE ARE LESS OPTIMISTIC THAN THEY HAD BEEN THE CONFERENCE BOARD IS A PRIVATE BUSINESS RESEARCH ORGANIZATION 9303250115 930312 REVIEW & OUTLOOK EDITORIAL ETHICAL STANDING IN OUR COMMENTS ON THE INTERVENTION IN THE CORRUPTION TRIAL OF REP HAROLD FORD BY THE BLACK CAUCUS JUSTICEWHITE HOUSE LIAISON WEBSTER HUBBELL AND ACTING ATTORNEY GENERAL STUART GERSON WE HAVE PERHAPS NOT FULLY REPORTED THE OTHER SIDE SO WE SHOULD WELCOME TO THE AUGUST PRESENCE OF THE JUDICIARY COMMITTEE THE NEW SENATOR FROM ILLINOIS CAROL MOSELEY BRAUN YESTERDAY WE REPRINTED SOME OF THE COLLOQUY ABOUT THE FORD TRIAL BETWEEN JANET RENO AND SENATE REPUBLICANS AT THE END OF THE DAY SENATOR BRAUN ASKED FOR THE FLOOR TO MAKE A POINT OF PERSONAL PRIVILEGE AS A MEMBER OF THE CONGRESSIONAL BLACK CAUCUS THE MEETING WITH JUSTICE OFFICIALS AND 26 MEMBERS OF CONGRESS OVER THE TRIAL OF ANOTHER MEMBER OF CONGRESS CONCERNED THE ISSUE OF SIMPLE EVENHANDED JUSTICE SHE PROTESTED BUT IT WAS BEING DISTORTED BY THE ALICE IN WONDERLAND LANGUAGE OF THIS TOWN THE US ATTORNEY IN THE CASE SHE SAID ADVANCED THE UNIQUE THEORY THAT THE GOVERNMENT WAS ENTITLED TO A CHANGE OF VENUE BECAUSE HAROLD FORD'S POPULARITY AS A CONGRESSMAN MADE IT IMPOSSIBLE TO FIND 12 RESIDENTS OF MEMPHIS WILLING TO CONVICT HIM IN THE CURRENT TRIAL THE US ATTORNEY HAD JURY SELECTION MOVED OUTSIDE OF THE CITY USED NINE OF HIS 10 PREEMPTORY CHALLENGES TO STRIKE AFRICANAMERICANS FROM THE POOL AND OBTAINED A JURY OF 11 WHITES AND ONE BLACK TO SIT IN JUDGMENT OF HAROLD FORD AND PRESENTED WITH THESE FACTS THE ACTING ATTORNEY GENERAL'S DECISION TO SUPPORT THE UNSEATING OF THIS GERRYMANDERED JURY WAS SIMPLY A PROPER EXERCISE OF HIS SUPERVISORY RESPONSIBILITIES SENATOR BRAUN DID NOT MENTION THAT AT THE FIRST TRIAL REP FORD HAD REPEATEDLY LEVELED CHARGES OF RACISM AND HAD ORCHESTRATED DEMONSTRATIONS OUTSIDE THE COURTROOM NOR THAT THE CHANGE OF VENUE WAS GRANTED BY US DISTRICT JUDGE ODELL HORTON A BLACK APPOINTED BY JIMMY CARTER ACTING ON HIS CONCLUSION THAT TWO MEMBERS OF THE JURY WERE DETERMINED TO ACQUIT REGARDLESS OF THE EVIDENCE AND THAT THE CASE WAS PERMEATED BY JUROR MISCONDUCT FOR REPUBLICANS TO ASK A NEW ATTORNEY GENERAL ANY QUESTIONS ABOUT THIS EPISODE THE SENATOR CONCLUDED WAS MUDSLINGING AND FINGERPOINTING THIS IS GOING DOWN IN WASHINGTON AS THE MOSELEY BRAUN PLOY SHE ALSO THIS WEEK ATTENDED HEARINGS STAGED BY SENATOR DON RIEGLE OF THE BANKING COMMITTEE TO MAKE THE POINT THAT THE FEDERAL RESERVE DISTRICT BANK PRESIDENTS WERE 12 WHITE MEN WHEN SENATOR CONNIE MACK STARTED TO OBJECT SENATOR BRAUN ACCUSED HIM OF TURNING THE HEARINGS INTO A POLITICAL EXERCISE LET US SAY THIS ABOUT THE NEW SENATOR FROM ILLINOIS WE CAN UNDERSTAND THAT SHE MIGHT HAVE AN INTEREST IN THE BROADEST POSSIBLE INTERPRETATION OF CONGRESSIONAL IMMUNITY SHORTLY AFTER HER ELECTION LAST NOVEMBER SHE WAS ACCUSED OF FAILING TO REPORT INCOME IN ORDER TO PRESERVE HER MOTHER'S MEDICAID BENEFITS SHE APOLOGIZED AND HAD TO SEND THE STATE OF ILLINOIS A CHECK FOR 15200 TWO MONTHS LATER SHE HAD TO APOLOGIZE AGAIN FOR PUTTING 10 FORMER CAMPAIGN WORKERS ON THE COOK COUNTY PAYROLL JUST AS SHE LEFT HER JOB AS COUNTY RECORDER OF DEEDS SHE THEN DISMISSED ALLEGATIONS OF SEXUAL HARASSMENT BROUGHT AGAINST HER BOYFRIEND AND CAMPAIGN MANAGER BY SAYING SHE WAS SATISFIED WITH HIS EXPLANATIONS THEN AGAIN SHE IS A MEMBER OF THE JUDICIARY COMMITTEE SHE SITS BESIDE CHAIRMAN JOSEPH BIDEN THE PLAGIARIZER TEDDY KENNEDY OF VARIOUS ACCOMPLISHMENTS HOWARD METZENBAUM OF THE HAYADAMS FINDER'S FEE AND ON THE OTHER SIDE OF THE AISLE ORRIN HATCH WITH HIS FRIENDS AT BCCI AND OF COURSE HER BANKING COMMITTEE IS CHAIRED BY DON RIEGLE CHARTER MEMBER OF THE KEATING FIVE SO BY THE PRECEDENTS OF THE WORLD'S GREATEST DELIBERATIVE BODY WE HAVE TO ADMIT SENATOR BRAUN HAS HIGH QUALIFICATIONS FOR LECTURING ABOUT THE ETHICS OF LAW ENFORCEMENT SEE RELATED LETTER LETTERS TO THE EDITOR IMPUGNED MY MOTIVES WITH A CHEAP SHOT WSJ MARCH 24 1993 9303120002 9303250114 930325 WORLD MARKETS WITH RUSSIA AS A GLOBAL SUBTEXT PRICES SOFTEN IN TOKYO WAFFLE IN LONDON GAIN IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES SOFTENED WEDNESDAY ON PROFITTAKING WITH THE APPROACH OF THE FISCAL YEAR END WEDNESDAY DEALINGS WERE CAUTIOUS BECAUSE OF CONCERNS ABOUT THE YEN'S STRENGTH AND CONTINUING POLITICAL TENSION IN RUSSIA LONDON PRICES FINISHED LITTLE CHANGED IN THIN DEALINGS AS A RECOVERY IN STOCKINDEX FUTURES HELPED EQUITIES BOUNCE UP FROM EARLY LOSSES IN FRANKFURT STOCKS STAGED A TECHNICAL REBOUND FROM TWO DAYS OF LOSSES AS INVESTORS CALMED THEIR FEARS ABOUT THE RUSSIAN TURMOIL THOUGH THIS CONTRIBUTED TO WARINESS ON BOURSES ELSEWHERE IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SANK 29277 POINTS TUESDAY DROPPED 4093 TO 1845069 NEAR THE DAY'S LOW OF 1842340 ON THURSDAY THE NIKKEI ROSE 29327 POINTS TO CLOSE THE MORNING SESSION AT 1874396 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES DOWN FROM 377 MILLION SHARES ON TUESDAY DECLINERS TOPPED GAINERS 570440 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 1579 POINTS TUESDAY GAVE UP 248 TO 139543 THE NIKKEI PUSHED UP DURING MORNING TRADING TO REACH AN INTRADAY HIGH OF 1864362 ON A RELATIVELY STRONG SHOWING BY NIKKEI FUTURES IN CHICAGO LATE TUESDAY AND A RESPITE FROM A WORSENING OF BOTH RUSSIA'S POLITICAL SITUATION AND THE YEN'S RISE IN CURRENCY MARKETS INVESTMENT TRUSTS AND DEALERS LED BUYING DURING THE SESSION WITH STRONG PURCHASES OF TELECOMMUNICATIONS ELECTRONICS AND RAILWAY STOCKS BUT IN THE LAST HOUR DEALERS SOLD POSITIONS TOPPLING PRICES FROM THEIR HIGHS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EASED 05 POINT TO 28606 JUST 02 POINT OFF THE INTRADAY PEAK AND WELL ABOVE THE LOW OF 28437 THE FT 30STOCK INDEX FELL 27 POINTS TO 22355 VOLUME WAS 8335 MILLION SHARES UP FROM 7017 MILLION SHARES A DAY EARLIER PRICES INITIALLY DROPPED ON NEWS OF POOR CORPORATE EARNINGS DIVIDEND CUTS AND PROFIT WARNINGS RUSSIA'S TROUBLES ALSO WEIGHED ON SENTIMENT BUT STOCKS RECOVERED HELPED BY COVERING OF SHORT OR OVERSOLD POSITIONS IN THE STOCKINDEX FUTURES MARKET AND A FIRM START ON WALL STREET ON STRONG US FACTORY ORDERS FOR DURABLE GOODS IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1101 POINTS TO 165945 NEAR THE SESSION HIGH OF 166208 THE RECOVERY WAS PARTLY PROMPTED BY REPORTS THAT US PRESIDENT CLINTON SUPPORTED RUSSIAN PRESIDENT YELTSIN IN HIS SHOWDOWN OVER POLITICAL POWER MARKET HOPES ALSO WERE RISING THAT THE GERMAN BUNDESBANK THE CENTRAL BANK WILL LOWER GERMAN INTEREST RATES NEXT THURSDAY PARIS STOCKS CLIMBED FROM NEGATIVE TERRITORY TO CLOSE SLIGHTLY HIGHER AMSTERDAM PRICES WEAKENED AS THE POLITICAL TENSIONS IN RUSSIA CONTINUED THOUGH NEW YORK'S POSITIVE OPENING PUSHED DUTCH SHARES UP TOWARD THE END OF THE SESSION AMSTERDAM PRICES WEAKENED ON THE RUSSIAN TURMOIL IN MILAN EARLY LOSSES WERE ERASED BY A LATE RALLY IN THE BANKING SECTOR AND PRICES FINISHED MIXED MADRID EQUITIES WERE UNCHANGED AS INVESTORS OVERLOOKED A HEFTY DROP IN SPANISH INFLATION FOR FEBRUARY TO FOCUS ON INTERNATIONAL EVENTS ZURICH SHARES DECLINED IN A LATE REACTION TO THE RUSSIAN SITUATION SYDNEY STOCKS FIRMED ON A CUT IN AUSTRALIAN INTEREST RATES BUT INVESTORS REMAINED WARY ABOUT DEVELOPMENTS IN RUSSIA WHICH PUSHED EQUITIES DOWN IN SEOUL AND WELLINGTON HONG KONG SHARES GAINED FOR THE SECOND DAY IN A A ROW HELPED BY BULLISH EXPECTATIONS FOR PROPERTY AND A DELAY IN LEGISLATIVE CONSIDERATION OF THE TERRITORY'S DEMOCRATIC REFORM PLATFORM MANILA SHARES REBOUNDED LED BY THE COMMERCIAL AND INDUSTRIAL SECTORS AMONG CORPORATE DEVELOPMENTS IN LONDON SMITHKLINE BEECHAM FELL 115 PENCE OR 27 TO 416 PENCE 617 THE ANGLOUS PHARMACEUTICAL COMPANY PLANS TO INCREASE THE FOURTHQUARTER DIVIDEND ON CLASS A SHARES TO 2533 PENCE EACH FROM 2375 PENCE BECAUSE OF RECENT BRITISH TAX CHANGES PAYOUTS WON'T BE CHANGED FOR USLISTED EQUITY WARRANTS LASMO PLUNGED 19 OR 99 TO 173 THE OIL COMPANY POSTED AN UNEXPECTED 1992 NET LOSS OF 385 MILLION 5711 MILLION AFTER 426 MILLION OF SPECIAL COSTS FOR PROVISIONS AND LOSSES ON DISPOSALS COMPARED WITH A RESTATED 1991 NET LOSS OF 4 MILLION LASMO CITING PRESSURE ON OIL PRICES CUT THE ANNUAL DIVIDEND 61 TO 33 PENCE A SHARE IN FRANKFURT DAIMLERBENZ RALLIED 11 MARKS OR 19 TO 60550 MARKS 37129 THE INDUSTRIAL CONCERN EXPECTS TO LIST ITS SHARES ON THE NEW YORK STOCK EXCHANGE THIS YEAR WHICH WOULD MAKE IT THE FIRST GERMAN COMPANY TO DO SO AS DIFFERENCES IN US AND GERMAN ACCOUNTING PRACTICES HAVE PRECLUDED THIS AS PART OF DAIMLER'S DISCUSSIONS WITH US SECURITIES OFFICIALS THE COMPANY SAID IT WOULD DECLARE 4 BILLION MARKS 245 BILLION IN HIDDEN RESERVES AS AN EXTRAORDINARY GAIN ON ITS 1992 BALANCE SHEET THE RESERVES WILL BE RETAINED VEBA ROSE 280 TO 37380 THE TRADE CHEMICAL AND OIL COMPANY WILL PAY AN UNCHANGED DIVIDEND OF 12 MARKS A SHARE FOR 1992 DESPITE A 17 DROP IN PROFIT TO A REVISED 906 MILLION MARKS 5556 MILLION FROM A YEAR EARLIER PRELIMINARY EARNINGS HAD SHOWED A 19 DROP TO 900 MILLION MARKS ALSO VEBA WILL PROPOSE A CAPITAL INCREASE OF 500 MILLION MARKS THROUGH ISSUING AN INDICATED 10 MILLION SHARES IN STOCKHOLM ESSELTE JUMPED THREE SWEDISH KRONOR OR 31 TO 100 KRONOR 1292 CITING EFFECTS OF A STREAMLINING PROGRAM THE OFFICE SUPPLY COMPANY POSTED 1992 PRETAX PROFIT AFTER FINANCIAL ITEMS OF 259 MILLION KRONOR 335 MILLION COMPARED WITH A YEAREARLIER LOSS OF 416 MILLION KRONOR ESSELTE PREDICTED A HIGHER PROFIT FOR THIS YEAR IN ZURICH NESTLE BEARER SHARES SHED 15 SWISS FRANCS OR 13 TO 1165 FRANCS 771 THE FOOD GIANT'S 1992 GROUP PROFIT ROSE 92 TO 27 BILLION FRANCS 179 BILLION NESTLE WILL PROPOSE 93 DIVIDEND INCREASES TO 2350 FRANCS A BEARER SHARE AND 47 FRANCS A BEARER PARTICIPATION CERTIFICATE THE COMPANY ALSO WILL PROPOSE IN MAY A PLAN TO SIMPLIFY ITS CAPITAL STRUCTURE AND INCREASE MARKET LIQUIDITY OF NESTLE STOCK BY ELIMINATING BEARER SHARES AND BEARER PARTICIPATION CERTIFICATES THROUGH SWAPS FOR REGISTERED SHARES DEALERS ATTRIBUTED YESTERDAY'S STOCK DROP TO PROFITTAKING IN HONG KONG JARDINE MATHESON HOLDINGS LOST 25 CENTS TO 4675 HONG KONG DOLLARS US605 BEFORE EARNINGS WERE POSTED THE CONGLOMERATE LATER REPORTED THAT 1992 PROFIT ROSE 17 TO US3168 MILLION JARDINE ALSO POSTED A SPECIAL GAIN OF US307 MILLION FROM AN ASSET TRANSFER BOOSTING PROFIT ATTRIBUTABLE TO SHAREHOLDERS TO US3475 MILLION THE DIVIDEND WAS INCREASED 14 TO 187 CENTS A SHARE HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9303250113 930325 LETTERS TO THE EDITOR WARSAW JEWS' VALIANT MEMORY PROFANED JOHN D DINGELL III IN HIS MARCH 15 LETTER TO THE EDITOR MAKES AN OPPROBRIOUS COMPARISON OF THE WACO TEXAS SHOOTOUT BETWEEN THE BRANCH DAVIDIANS CHRISTIAN SECT AND AGENTS OF THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS BATF WITH THE NAZI ATTACK ON THE JEWS OF THE WARSAW GHETTO IN 1943 HE PROFANES THE MEMORY OF THE WARSAW UPRISING THE ABSURDITY OF HIS REASONING AND COMPARISON CAN BE EVIDENCED BY SEVERAL SIMPLE HISTORIC FACTS THE JEWS DID NOT RESIDE IN THE WARSAW GHETTO OF THEIR OWN FREE WILL THE NAZIS FORCED THEM TO LIVE THERE JEWS FOUND OUTSIDE THE GHETTO WERE EXECUTED SUMMARILY STARTING IN JULY 1942 THE NAZIS WERE SENDING ABOUT 5000 JEWS A DAY TO TREBLINKA CONCENTRATION CAMP WHERE THEY WERE GASSED AND CREMATED BY THAT SEPTEMBER THE NUMBER OF JEWS IN WARSAW HAD DECLINED FROM 380000 TO 70000 IN JANUARY 1943 THE NAZIS SEIZED 6500 OF THE REMAINING JEWS FOR DEPORTATION TO TREBLINKA THIS TIME THE NAZIS FACED SOME OPPOSITION AND ONE NAZI SOLDIER WAS INJURED AT 6 AM ON APRIL 19 1943 SOLDIERS OF THE WAFFEN SS ENTERED THE WARSAW GHETTO AND WERE MET WITH CONCENTRATED FIRE AND INCENDIARY BOTTLES THE SS WITHDREW HAVING SUFFERED SOME CASUALTIES BUT RETURNED LATER THE SAME MORNING BY MAY 15 THE BATTLE WAS OVER AND THOUSANDS OF JEWS WERE KILLED THE REMAINDER WERE SENT TO THE CONCENTRATION CAMPS AND CERTAIN DEATH THE SS SUFFERED 16 DEAD AND 85 WOUNDED THERE WERE NO DEALS IN WARSAW AND NO RELEASE OF CHILDREN THE SS HAD NO COMPUNCTION ABOUT WHOM THEY KILLED INCLUDING CHILDREN I AM NOT PASSING ANY JUDGMENT ON THE BRANCH DAVIDIANS AND DO NOT QUESTION THEIR RIGHT TO PROFESS A RELIGION AND RITUALS THAT DIFFER FROM MINE HOWEVER THEIR SITUATION CANNOT AND SHOULD NOT BE COMPARED WITH THAT OF THE JEWS IN THE WARSAW GHETTO THE BRANCH DAVIDIANS WERE NOT FORCED TO RESIDE IN THIS LOCATION MEMBERS FOUND OUTSIDE THEIR HOMES WILL NOT BE EXECUTED SUMMARILY BY THE BATF THEY NEED NOT FEAR BEING GASSED AND CREMATED IF THE BATF OVERCOMES THEIR RESISTANCE AND TAKES THEM INTO CUSTODY MR DINGELL'S LETTER SHOULD QUALIFY FOR THE GUINNESS BOOK OF WORLD RECORDS IN ABSURDITY TO COMPARE US LAW ENFORCEMENT PERSONNEL WITH THE MURDEROUS NAZIS IS LUDICROUS IT TRIVIALIZES THE ENORMITY OF THE NAZI CRIMES IN GENERAL AND THOSE COMMITTED AGAINST THE WARSAW GHETTO FIGHTERS IN PARTICULAR THE AGENTS OF THE BATF DID NOT COME TO THE DAVIDIAN BRANCH COMPOUND WITH THE PRECONCEIVED PLAN TO EXTERMINATE ALL THOSE INSIDE I AM CERTAIN THAT THESE TWO EVENTS ARE ABSOLUTELY COMPARABLE AS REGARDS THE SIMILARITY OF THE HELMETS AND THE MANUFACTURE OF THE WEAPONS BUT THERE ARE A FEW MISSING DETAILS WHICH US PRESIDENT PUBLISHED THE EQUIVALENT OF MEIN KAMPF AND EXPLAINED WHAT HAD TO BE DONE TO THE BRANCH DAVIDIANS WHO ROUNDED UP THE BRANCH DAVIDIANS AND FORCED THEM INTO THE WACO COMPOUND WHO DECREED THAT THEY MUST WEAR DISTINCTIVE ARMBANDS AND REMAIN IN THAT COMPOUND WHEN WAS THE FINAL SOLUTION TO THE BRANCH DAVIDIAN GROUP DECIDED UPON AND WHO DECIDED IT MR DINGELL HAS EVERY RIGHT TO OPPOSE THE ATTACK ON THE BRANCH DAVIDIANS AND HE MAY EVEN BE CORRECT HOWEVER LET HIM DISCUSS THE FACTS RATIONALLY NOT ATTEMPT AN EMOTIONAL NONEXISTENT CONNECTION THAT DESECRATES THE MEMORY OF THE DEFENDERS OF THE WARSAW GHETTO I DON'T BELIEVE IT IS A POLICY OF THE US GOVERNMENT TO ISOLATE SEGREGATE AND DESTROY THE BRANCH DAVIDIANS AS WAS THE POLICY OF THE NAZIS TO DESTROY THE MILLIONS OF JEWS IN GERMANY POLAND AUSTRIA FRANCE HOLLAND ETC I APPRECIATE THAT YOU ARE WILLING TO PUBLISH CONTROVERSIAL LETTERS BUT I BELIEVE YOU HAVE STRETCHED YOUR CREDIBILITY IN PUTTING THIS ABSURDITY INTO PRINT BATF AGENTS ARE DULY CONSTITUTED LAW ENFORCEMENT OFFICERS REPRESENTATIVE OF A DEMOCRATICALLY ELECTED GOVERNMENT THE NAZIS ON THE OTHER HAND WERE CONTEMPTUOUS OF LEGAL RESTRAINTS AND ABUSED THE CIVIL RIGHTS OF ALL WHOM THEY CONTROLLED JUST AS IMPORTANT EUROPEAN JEWS UNLIKE THE BRANCH DAVIDIANS HAD BROKEN NO LAW AND POSED NO THREAT TO THE SURROUNDING SOCIETY THEIR ONLY CRIME WAS BEING JEWISH THEY WERE THE NAZIS' CHOSEN VICTIMS WE DO NOT DISPUTE MR DINGELL'S RIGHT TO QUESTION THE TACTICS OF THE BATF IN THE WACO CASE BUT HIS DISTORTED PARALLEL CONFUSES VICTIMS WITH PERPETRATORS LEGITIMATE AUTHORITY WITH NAZI BRUTALITY AND HISTORY WITH POLEMIC THE MEMORY OF MY GRANDPARENTS WHO WERE MURDERED BY THE NAZIS IN THE LODZ GHETTO DEMANDS A RESPONSE THE REFERENCE TO CONTEMPTIBLE SEXUAL RITUALS INVOLVING YOUNG CHILDREN IS AS FAR AS THE BRANCH DAVIDIANS ARE CONCERNED A FACT THAT CURRENT AND FORMER MEMBERS APPARENTLY FREELY ADMIT IF ONE APPROPRIATELY VIEWS CHILD MARRIAGE TO BE A CONTEMPTIBLE SEXUAL RITUAL A SIMILAR CHARGE AGAINST THE JEWS OF WARSAW WAS SIMPLY ANOTHER VICIOUS ANTISEMITIC LIE BY THE NAZI PROPAGANDA MACHINE MR DINGELL'S REFERENCE TO THE PRESENCE OF THE NEWS MEDIA IN WACO IS PARTICULARLY DISTURBING SURELY ANY OBJECTIVE READER CAN SEE THE DIFFERENCE BETWEEN A NAZI PROPAGANDA EFFORT AND A FREE PRESS THE MAGNANIMOUS TRUCE IN WACO HAS RESULTED IN MEDICAL CARE FOOD AND SAFETY FOR THE BRANCH DAVIDIAN CHILDREN THE MAGNANIMOUS TRUCE IN THE WARSAW GHETTO RESULTED IN THE DEATH OF EVERY CHILD THE NAZIS TOOK OUT 9303250112 930325 TECHNOLOGY & HEALTH EXXON OIL SETTLEMENT FOR ALASKA SOUND ALLOCATED BY US AFTER THREE YEARS OF HAGGLING 25 MILLION OUT OF ORIGINAL 1 BILLION IS SET FOR WILDLIFE BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL AFTER NEARLY THREE YEARS OF COSTLY HAGGLING AND DELAY THE FEDERAL GOVERNMENT HAS PUT UP JUST 25 MILLION TO BEGIN PRESERVING WILDLIFE HABITAT NEAR AREAS FOULED BY THE EXXON VALDEZ OIL DISASTER THE AMOUNT IS A SLIVER OF THE 1 BILLION THE FEDERAL GOVERNMENT AND THE STATE OF ALASKA RECEIVED FROM EXXON CORP OWNER OF THE EXXON VALDEZ SUPERTANKER AS SETTLEMENT OF CHARGES RELATED TO THE OIL SPILL IN MARCH 1989 THAT SPILL SPLATTERED ALASKA'S PRISTINE PRINCE WILLIAM SOUND WITH 11 MILLION GALLONS OF CRUDE OF THE 1 BILLION NEARLY 270 MILLION HAS ALREADY BEEN SPENT MOSTLY ON SCIENTIFIC STUDIES AND ADMINISTRATIVE COSTS FEDERAL AND STATE AGENCIES HAVE RECEIVED MOST OF THE MONEY BUT IN A TWIST THAT GALLS ENVIRONMENTALISTS EXXON ITSELF HAS POCKETED ABOUT 40 MILLION OF THE SETTLEMENT FUNDS FOR ITS OWN SCIENTIFIC STUDIES AND SOME CLEANUP WORK INDEED THE DESTINY OF THE SETTLEMENT FUNDS HAS BECOME THE FOCUS OF CONGRESSIONAL IRE AND A GENERAL ACCOUNTING OFFICE AUDIT THE GAO STUDY EXPECTED TO BE RELEASED IN THE NEXT FEW WEEKS CONCLUDES THAT MUCH OF THE MONEY SPENT THUS FAR WAS FRITTERED AWAY ON DUBIOUS SCIENTIFIC STUDIES AND UNNECESSARY BUREAUCRATIC COSTS ACCORDING TO SCIENTISTS FAMILIAR WITH THE INQUIRY THE STUDY IS SAID TO BE HIGHLY CRITICAL OF SOME DECISIONS MADE BY THE GROUP OF FEDERAL AND STATE APPOINTEES CHARGED WITH DISTRIBUTING THE FUNDS THE SETTLEMENT MONEY IS DISAPPEARING AND PRINCE WILLIAM SOUND HAS VERY LITTLE TO SHOW FOR IT SAID ALAN PHIPPS STATE LANDS SPECIALIST WITH THE ALASKA CENTER FOR THE ENVIRONMENT ENVIRONMENTALISTS WELCOMED THE GOVERNMENT'S DECISION TO PUT UP 25 MILLION FOR HABITAT ACQUISITION THEY HAVE LONG BEEN CLAMORING FOR SUCH FUNDS PARTICULARLY GIVEN THE RAPID CLIP AT WHICH OLDGROWTH TIMBER IN THE AREA HAS BEEN CUT DOWN THE OLDGROWTH IS VITAL HABITAT FOR MANY BIRDS AND OTHER SPECIES HARD HIT BY THE SPILL IT ALSO PROTECTS STREAMS VITAL TO SALMON SPAWNING SOME 42000 ACRES IN THE PRINCE WILLIAM SOUND AREA ARE SCHEDULED FOR LOGGING IN THE NEAR FUTURE ENVIRONMENTALISTS SAID THE 25 MILLION PUT UP BY THE GOVERNMENT YESTERDAY WILL GO TOWARD ACQUIRING AND PRESERVING AS PARKLAND SOME OF THE ACREAGE MOST IMMINENTLY THREATENED BY LOGGING THE LAND IS OWNED MOSTLY BY NATIVE ALASKAN CORPORATIONS AT THE TOP OF THE LIST ARE 15000 ACRES SURROUNDING SLEEPY BAY AN INLET ON KODIAK ISLAND THOUSANDS OF ACRES ARE SLATED FOR LOGGING WITHIN WEEKS BY A CONSORTIUM WHICH INCLUDES NATIVE GROUPS THAT OWN THE LAND AND A LOCAL LOGGING CONCERN THE GOVERNMENT'S ANNOUNCEMENT CAME ON THE FOURTH ANNIVERSARY OF THE SPILL IRONICALLY THE ALASKA LEGISLATURE FACED WITH A BUDGET CRISIS SPENT PART OF ITS DAY DEBATING WHETHER TO SHRINK A CONTINGENCY FUND MANDATED IN THE WAKE OF THE SPILL TO RESPOND TO ANY FUTURE OIL DISASTERS 9303250111 930325 WEDNESDAY'S MARKETS STOCKS FALL ON CONCERN OVER RUSSIA BONDS ALSO DECLINE ON DEFICIT WORRIES BUT DOLLAR ADVANCES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL RENEWED WORRIES ABOUT POLITICAL TENSIONS IN RUSSIA DROVE STOCK AND BOND PRICES LOWER THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE SANK 1648 POINTS TO 344538 STANDARD & POOR'S 500STOCK INDEX FELL 069 TO 44807 AND THE NASDAQ COMPOSITE INDEX LOST 068 TO 67436 TRADING BEGAN ON AN UPBEAT NOTE AFTER THE COMMERCE DEPARTMENT REPORTED THAT DURABLEGOODS ORDERS JUMPED 22 IN FEBRUARY EXCEEDING ECONOMISTS' EXPECTATIONS OF A 05 RISE BUT ANALYSTS SAID THE INDUSTRIAL AVERAGE TUMBLED MORE THAN 30 POINTS IN THE AFTERNOON AFTER INVESTORS BEGAN TO FOCUS ON THE POLITICAL STALEMATE IN RUSSIA HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY SAID NEWS THAT THE CONGRESS OF PEOPLE'S DEPUTIES PLANNED TO DEBATE THE REMOVAL OF PRESIDENT BORIS YELTSIN TOMORROW RATTLED BOTH THE STOCK AND BOND MARKETS THE NUMBER ONE PROBLEM IS THAT DARK CLOUD WHICH IS RUSSIA MR JOHNSON ASSERTED HE SAID BOND PRICES SANK ON FEARS THAT RUSSIA'S TROUBLES MAY LIMIT PLANNED US DEFENSE CUTS AND IMPEDE DEFICITREDUCTION EFFORTS BOND TRADERS SAID BOND PRICES ALSO WERE DRAGGED LOWER BY A WEAKERTHANEXPECTED AUCTION OF TWOYEAR NOTES THE STOCK PRICE SLUMP WAS EXACERBATED BY BIG DECLINES IN DRUG STOCKS AFTER MERCK ANNOUNCED LATE TUESDAY IT EXPECTS SLOWERTHANEXPECTED GROWTH THIS YEAR MERCK LOST 2 1/4 OR 61 TO 34 3/4 A SELLOFF IN SOME COMPUTER STOCKS PARTICULARLY INTERNATIONAL BUSINESS MACHINES WHICH PLUNGED 3 1/8 OR 58 TO 51 1/8 ALSO CONTRIBUTED TO THE DAY'S DECLINE THESE STORIES WITHIN THE MARKET HAVE AGGRAVATED A NEGATIVE MARKET THAT WAS SET UP BY THE EVENTS IN RUSSIA AND BY THE TUMBLE IN THE BOND MARKET MR JOHNSON SAID HOWEVER THE POSITIVE DURABLEGOODS REPORT PROVIDED SOME STRENGTH TO ECONOMICALLY SENSITIVE STOCKS SUCH AS OILS CHEVRON JUMPED 1 7/8 OR 23 TO 81 7/8 AND AMOCO ROSE 1 OR 18 TO 57 7/8 RALPH BLOCH MARKET STRATEGIST AT RAYMOND JAMES & ASSOCIATES IN ST PETERSBURG FLA SAID THE RECENT STRENGTH IN CYCLICAL STOCKS MAY BE A SIGN THE STOCK MARKET IS LOSING STEAM HE ALSO CITED A RECENT SLOWDOWN IN VOLUME AND A NARROWING BETWEEN THE NUMBER OF DAILY ADVANCING AND DECLINING ISSUES BUT MR BLOCH ADDED THAT THE INDUSTRIAL AVERAGE COULD ADD ANOTHER 50 TO 100 POINTS THIS KIND OF LATE CYCLICAL STUFF CAN LAST A WHILE HE SAID I EXPECT THE DOW TO MAKE NEW HIGHS BEFORE A SLUMP BEGINS WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 053 TO 9858 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 271980000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1001 ISSUES FELL AND 883 ROSE THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 16375 MARKS AND 11760 YEN COMPARED WITH 16305 MARKS AND 11595 YEN TUESDAY 9303250110 930325 TRADE CENTER BOMB SUSPECT BROUGHT TO US ALLEGED MASTERMIND NABBED IN EGYPTIAN CRACKDOWN OVER FUNDAMENTALISM BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEDERAL LAW ENFORCEMENT AGENTS BROUGHT THE ALLEGED MASTERMIND BEHIND THE WORLD TRADE CENTER BOMBING FROM EGYPT TO THE US TO FACE CHARGES IN THE CASE INVESTIGATORS SAID THE SUSPECT IS MAHMUD ABOUHALIMA AN EGYPTIAN DESCRIBED BY AUTHORITIES AS A NEW YORK CITY TAXICAB DRIVER WITH TIES TO A RADICAL EGYPTIAN CLERIC SHEIK OMAR ABDELRAHMAN MR ABOUHALIMA ARRIVED YESTERDAY AT STEWART INTERNATIONAL AIRPORT IN NEWBURGH NY JUST NORTH OF NEW YORK CITY DETAILS OF THE ARREST AND CHARGES WERE SEALED PENDING MR ABOUHALIMA'S ARRAIGNMENT SCHEDULED FOR THIS MORNING THE US ATTORNEY'S OFFICE SAID IT PLANNED TO ARRAIGN THE SUSPECTS IN CONNECTION WITH THE CASE TODAY AT THAT TIME A JUDGE WILL BE ASSIGNED TO THE CASE SURROUNDED BY ARMED AGENTS MR ABOUHALIMA ARRESTED ALMOST A WEEK AGO AS PART OF AN EGYPTIAN GOVERNMENT CRACKDOWN ON FUNDAMENTALIST UNREST LANDED AT 410 PM AT STEWART ACCORDING TO ONE LAW ENFORCEMENT OFFICIAL MR ABOUHALIMA DEPLANED WEARING HANDCUFFS SURROUNDED BY A GROUP OF AGENTS HOLDING GUNS MR ABOUHALIMA WAS MET BY OFFICIALS OF THE FBI AND AN ASSISTANT US ATTORNEY WORKING ON THE CASE ONE REASON MR ABOUHALIMA LANDED IN NEWBURGH WAS SO THE US DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK COULD RETAIN JURISDICTION IN THE CASE LANDING ELSEWHERE WOULD HAVE PLACED THE CASE IN A SEPARATE JURISDICTION FROM THE OTHER CASES INVOLVED ACCORDING TO ONE OFFICIAL MR ABOUHALIMA WAS CALM AND SPOKE EASILY IN ENGLISH HE SAID MR ABOUHALIMA SPENT THE ENTIRE FLIGHT FROM EGYPT IN HANDCUFFS INCLUDING A REFUELING STOP BELIEVED TO BE IN ENGLAND AFTER BEING EXAMINED BY A DOCTOR FROM NEW YORK HOSPITAL AND US CUSTOMS AGENTS OFFICIALS PLACED MR ABOUHALIMA IN A CAR SURROUNDED BY FOUR AGENTS HOLDING M16 MACHINE GUNS AND DRIVEN TO NEW YORK CITY AN OFFICIAL SAID HEAVY PROTECTION WAS BEING USED NOT ONLY BECAUSE AUTHORITIES BELIEVE MR ABOUHALIMA IS DANGEROUS BUT ALSO BECAUSE THERE IS A BELIEF AMONG LAW ENFORCEMENT OFFICIALS THAT SOMEONE MAY TRY TO KILL HIM HE WILL BE HELD IN TIGHT CUSTODY UNTIL BEING ARRAIGNED MR ABOUHALIMA WHOSE FAMILY LIVES IN KAFR ELDIWAR EGYPT WORSHIPED AT A JERSEY CITY NJ MOSQUE AT WHICH SHEIK OMAR PREACHED SHEIK OMAR CONTINUES TO DELIVER SERMONS IN THE US ON A TOURIST VISA INVESTIGATORS HAVE SPECULATED THAT THE CLERIC'S ANTIWESTERN RHETORIC MAY HAVE INSPIRED THE FEB 26 WORLD TRADE CENTER BOMBING THAT KILLED SIX PEOPLE AND INJURED MORE THAN 1000 US IMMIGRATION OFFICIALS HAVE DENIED HIS REQUESTS FOR ASYLUM AND ARE SEEKING TO DEPORT HIM SHEIK OMAR THROUGH HIS ATTORNEY APPEALED THE DEPORTATION ORDER TO THE BOARD OF IMMIGRATION APPEALS HE HAS CONDEMNED THE BOMBING AND DENIED KNOWLEDGE OF THE SUSPECTS MR ABOUHALIMA APPARENTLY FLED THE COUNTRY SHORTLY AFTER THE MARCH 4 ARREST OF MOHAMMED SALAMEH JERSEY CITY NJ IN CONNECTION WITH THE BLAST THE WALL STREET JOURNAL REPORTED THAT FEDERAL LAW ENFORCEMENT OFFICIALS SUSPECTED MR ABOUHALIMA AND TWO OTHER SUSPECTS HAD FLOWN THROUGH SOUTH AFRICA INTO PAKISTAN NIDAL AYYAD MAPLEWOOD NJ HAS ALSO BEEN ARRESTED IN CONNECTION WITH THE BOMBING IBRAHIM ELGABROWNY NEW YORK HAS BEEN ACCUSED OF OBSTRUCTING THE INVESTIGATION MESSRS SALAMEH AYYAD AND ELGABROWNY ARE ALL BEING HELD WITHOUT BAIL 9303250109 930325 INTERNATIONAL BANCA DI ROMA POSTS PROFIT MILAN BANCA DI ROMA SAID 1992 GROSS PROFIT WAS 2005 TRILLION LIRE 127 BILLION THERE IS NO COMPARABLE YEAREARLIER FIGURE BECAUSE THE ITALIAN BANK WAS CREATED BY THE MERGER OF BANCO DI ROMA AND BANCO DI SANTO SPIRITO IN AUGUST BANCA DI ROMA SAID IT WOULD PAY A DIVIDEND OF 25 LIRE 16 CENTS A SHARE THE DIVIDEND PAID OUT BY THE NOWDEFUNCT BANCO DI ROMA AT THE END OF 1991 WAS 50 LIRE THE COMPANY SAID BANCA DI ROMA ITALY'S THIRD LARGEST BANK DIDN'T DISCLOSE ANY NET PROFIT FIGURES REVENUE WAS 116 TRILLION LIRE WHILE LOANS AMOUNTED TO MORE THAN 92 TRILLION LIRE 9303250108 930325 BUSINESS BRIEF AMDAHL SEES WIDER 1STQUARTER LOSS THAN EXPECTED TRIGGERING STOCK DROP SUNNYVALE CALIF AMDAHL CORP PROJECTED A WIDERTHANANTICIPATED LOSS FOR ITS FIRST QUARTER ENDING TOMORROW TRIGGERING A DIVE IN COMPUTER STOCKS THAT RATTLED THE ENTIRE MARKET THE BIG MAINFRAME COMPUTER MAKER DIDN'T GIVE A SPECIFIC PROJECTION HOWEVER IT DESCRIBED THE QUARTER'S RESULTS AS POOR AND SAID THE LOSS WILL BE WIDER THAN THE TWO CENTS A SHARE WALL STREET HAS BEEN PROJECTING IT ALSO SAID REVENUE WOULD BE CONSIDERABLY LOWER THAN THE 565 MILLION ANALYSTS HAVE BEEN EXPECTING AMDAHL CITED PRICE PRESSURE AND THE WEAK ECONOMY FOR THE OUTLOOK BUT DECLINED TO ELABORATE THE NEWS SENT AMDAHL'S STOCK SKIDDING ALMOST 19 ON HEAVY VOLUME CLOSING DOWN 150 AT 650 IN NEW YORK STOCK EXCHANGE TRADING MOREOVER AMDAHL'S TROUBLES WERE INSTANTLY SEIZED UPON BY ANALYSTS AS EVIDENCE OF BROAD TROUBLE IN THE COMPUTER BUSINESS PARTICULARLY FOR MAINFRAME MAKERS IT WAS VIEWED AS ESPECIALLY OMINOUS FOR INTERNATIONAL BUSINESS MACHINES CORP AMDAHL'S PRINCIPAL COMPETITOR IN THE MAINFRAME BUSINESS SEVERAL ANALYSTS TRIMMED THEIR EARNINGS ESTIMATES FOR IBM WILLIAM J MILTON A BROWN BROTHERS HARRIMAN ANALYST CHANGED HIS RECOMMENDATION ON IBM TO SELL FROM HOLD OTHER ANALYSTS SUCH AS DANIEL MANDRESH OF MERRILL LYNCH HAD SHAVED EARNINGS ESTIMATES FOR IBM EARLIER IN THE WEEK ON SIGNALS THAT THE MAINFRAME MARKET WAS STAGNATING IBM SHARES SLID ABOUT 57 CLOSING DOWN 3125 AT 51125 IN BIG BOARD TRADING AMDAHL HAS BEEN AN UPANDDOWN PERFORMER IN RECENT QUARTERS BUT MANY ANALYSTS HAD THOUGHT THE COMPANY WAS WEATHERING PRICE PRESSURE REASONABLY WELL EVEN THOUGH THEY EXPECTED A TOUGH QUARTER AN AMDAHL SPOKESMAN DECLINED TO COMMENT ON THE OUTLOOK FOR FUTURE QUARTERS IN THE YEAREARLIER QUARTER AMDAHL EARNED 44 MILLION OR FOUR CENTS A SHARE ON REVENUE OF 4979 MILLION 9303250107 930325 TECHNOLOGY & HEALTH RESEARCHERS FIND SICKBUILDING ILLS AREN'T TIED TO AIR BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL A GROUP OF RESEARCHERS FOUND THAT INCREASED VENTILATION IN BUILDINGS DIDN'T REDUCE REPORTED INCIDENCES OF THE SOCALLED SICKBUILDING SYNDROME AMONG OFFICE WORKERS THE STUDY IN THE LATEST ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE CALLS INTO QUESTION THE CONVENTIONAL RESPONSE TO SUCH MALADIES AS EYE NOSE AND THROAT IRRITATIONS HEADACHES AND FATIGUE IN OFFICE WORKERS THE CANADIAN RESEARCHERS FROM MCGILL UNIVERSITY IN MONTREAL SAID THAT IT HAS BEEN HYPOTHESIZED FOR A LONG TIME THAT THESE SYMPTOMS RESULT FROM INCREASED CONCENTRATION OF CONTAMINANTS FROM INDOOR SOURCES IN AN ACCOMPANYING EDITORIAL THE MEDICAL JOURNAL SAID THE STUDY BRINGS FRESH AIR TO THE LARGELY UNTESTED HYPOTHESIS BUT THE EDITORIAL WARNED THAT WE DON'T KNOW THE CAUSE OF THE SICKBUILDING SYNDROME IT SAID THE SCIENCE TO SUPPORT PREVENTION CORRECTION AND THE SETTING OF STANDARDS FOR INDOOR VENTILATION IS WOEFULLY UNDERDEVELOPED AND UNSUPPORTED IN THE US BUT THE FINDINGS OF THE RESEARCHERS MAY HAVE ECONOMIC IMPLICATIONS THE AMERICAN SOCIETY OF HEATING REFRIGERATION AND AIR CONDITIONING ENGINEERS IS IN THE EARLY STAGES OF REVISING ITS RECOMMENDED STANDARDS FOR BUILDING VENTILATION IN 1981 THE GROUP RECOMMENDED AN INCREASE IN THE MINIMAL SUPPLY OF OUTDOOR AIR TO 10 CUBIC FEET FROM FIVE CUBIC FEET PER MINUTE PER PERSON IN 1989 IT RAISED THE MINIMUM TO 20 CUBIC FEET THE SCIENTISTS SAID ANY PROPOSED BOOST IN VENTILATION WILL INCREASE ENERGY COSTS AND COULD ALSO EXCEED THE CAPACITY OF HEATING VENTILATION AND AIRCONDITIONING SYSTEMS IN MANY BUILDINGS ARTHUR WHEELER WHO IS ON THE STANDARDS COMMITTEE AT THE NOTFORPROFIT SOCIETY SAID THE RESEARCHERS' CONCLUSION ISN'T UNIQUE HE SAID PROPER VENTILATION NEVERTHELESS IS ONE MARK OF A HEALTHY BUILDING THE RESEARCHERS SURVEYED ABOUT 9000 WORKERS IN OFFICE BUILDINGS IN BRITAIN DENMARK AND SWEDEN AND FOUND THAT 50 TO 80 OF THE WORKERS REPORTED THE SICKBUILDING SYMPTOMS THEY ESTIMATE THAT THE AILMENTS MAY AFFECT AS MANY AS 25 MILLION WORKERS IN THE US THE RESEARCHERS ALSO STUDIED 1546 OFFICE WORKERS IN FOUR BUILDINGS THE SCIENTISTS MANIPULATED THE VENTILATION SYSTEMS TO DELIVER VARYING AMOUNTS OF OUTDOOR AIR AS MUCH AS 50 CUBIC FEET PER MINUTE PER PERSON THE PARTICIPANTS WEREN'T TOLD OF THE INCREASED FLOW OF OUTDOOR AIR THE SCIENTISTS FOUND THAT THE CHANGES IN THE AMOUNT OF OUTDOOR AIR DIDN'T CHANGE THE PEOPLES' SYMPTOMS OR THEIR RATINGS OF THE OFFICE AIR 9303250106 930325 ECONOMY AUTO MAKERS POST FLAT SALES IN MIDMARCH LACKLUSTER PACE CONTINUES FROM PREVIOUS 30 DAYS SEVERE WEATHER CITED BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE SELLING PACE OF DOMESTICALLY BUILT CARS AND LIGHT TRUCKS RAN ABOUT EVEN IN MIDMARCH WITH THE LACKLUSTER RATE OF THE PREVIOUS 30 DAYS PROMPTING CAR DEALERS AND AUTO ANALYSTS TO BLAME SEVERE WEATHER IN PARTS OF THE COUNTRY THE SEASONALLY ADJUSTED ANNUAL SELLING RATE FOR USBUILT CARS AND LIGHT TRUCKS WAS 106 MILLION VEHICLES WHICH IS AN IMPROVEMENT OVER THE WEAK 98 MILLION SELLING PACE IN THE YEARAGO MARCH 1120 PERIOD DESPITE THE HARSH WEATHER THAT BLANKETED THE EAST COAST AND PART OF THE SOUTH ANALYSTS SAID THE RESULTS WERE STILL DISAPPOINTING AND THEY CAUTIONED THAT IF THE SELLING PACE DOESN'T PICK UP IN THE NEXT COUPLE OF MONTHS SECONDQUARTER PRODUCTION SCHEDULES COULD BE IN JEOPARDY PRODUCTION PLANS FOR THE APRIL THROUGH JUNE PERIOD CALL FOR AN 11 INCREASE FROM LAST YEAR'S LACKLUSTER OUTPUT A SIGNAL THAT AUTO MAKERS ARE ANTICIPATING A SURGE IN SALES WHEN TEMPERATURES RISE THIS LATEST PERIOD WAS A BIT OF A SETBACK PROBABLY INDUCED BY WEATHER SAID JOSEPH PHILLIPPI AUTO ANALYST AT LEHMAN BROTHERS BUT IF WE DON'T GET SOME OOMPH TO THE MARKET PRODUCTION SCHEDULES FOR THE SECOND QUARTER WILL BE AT RISK OVERALL AMERICANS BOUGHT 333913 CARS AND LIGHT TRUCKS IN MIDMARCH UP 75 FROM THE 310754 PURCHASED IN THE YEARAGO PERIOD SALES OF MINIVANS SPORT UTILITY VEHICLES AND LIGHT TRUCKS WERE BRISK CLIMBING 211 IN THE PERIOD FORD MOTOR CO'S TOTAL VEHICLE SALES FOR THE LATEST 10DAY PERIOD ROSE 94 OUTPACING THE INDUSTRY AVERAGE FOR THE PERIOD A FORD SPOKESMAN BLAMED AN 11 SLIDE IN TAURUS SALES AND A 21 DROP IN TEMPO SALES IN PART ON THE WEATHER AND ON REDUCED SALES TO CARRENTAL COMPANIES GENERAL MOTORS CORP'S TOTAL VEHICLE SALES CLIMBED 47 IN THE PERIOD LARGELY HELPED BY A 295 BOOST IN ITS LIGHT TRUCK SALES ALL OF GM'S CAR DIVISIONS INCLUDING SATURN REPORTED A DROP IN SALES IN THE LATEST 10DAY PERIOD BUT DONALD HUDLER SATURN'S VICE PRESIDENT OF SALES SERVICE AND MARKETING SAID THE DIVISION ENDED THE PERIOD WITH A 21DAY SUPPLY OF UNSOLD CARS WHICH SHOWS THAT OUR SALES ARE STILL STRONG AND THAT WE STILL HAVE A SHORTAGE OF PRODUCT GM'S CADILLAC DIVISION HOWEVER REPORTED A 336 DROP IN SEVILLE SALES AND A 299 SLIDE IN ELDORADO SALES THE BASE SEVILLE ISN'T DOING WELL BUT THE SEVILLE AND ELDORADO WITH THE MORE POWERFUL NORTHSTAR ENGINE ARE DOING GREAT SAID ALAN SABEL NEW CAR MANAGER AT CLASSIC CADILLAC AND SUBARU IN ATLANTA I CAN'T KEEP THEM ON THE LOT MR SABEL SAID SALES OF HIS CADILLACS ARE OFF NEARLY 15 IN THE FIRST 20 DAYS OF MARCH COMPARED WITH THE YEARAGO PERIOD IN A MOVE TO SPUR SALES GENERAL MOTORS'S CADILLAC DIVISION IS OFFERING 1500 REBATES TO CADILLAC OWNERS WHO TRADE IN 1985 OR NEWER MODELS FOR A NEW SEDAN DEVILLE HE SAID HONDA MOTOR CO TRYING TO JUMPSTART SALES OF ITS ACCORD ON FRIDAY SLAPPED A 239AMONTH 24MONTH LEASE PROGRAM ON THE VEHICLE THAT MONTHLY PAYMENT IS ONLY AVAILABLE WITH A DOWN PAYMENT OF 1000 HONDA'S CAR SALES SKIDDED 169 IN THE LATEST 10DAY PERIOD OTHER JAPANESE AUTO MAKERS ALSO POSTED A DROP IN VEHICLE SALES IN MIDMARCH TOYOTA MOTOR CORP'S SALES TUMBLED 121 FROM THE YEARAGO PERIOD SUBARU OF AMERICA A UNIT OF JAPAN'S FUJI HEAVY INDUSTRIES INC REPORTED A 642 DROP IN SALES AND MITSUBISHI MOTORS CORP POSTED A 23 DECLINE IN SALES NISSAN MOTOR CORP HOWEVER REPORTED A 699 JUMP IN VEHICLE SALES COMPARED WITH THE YEARAGO PERIOD CHRYSLER CORP'S TOTAL VEHICLE SALES SURGED 322 IN THE LATEST 10DAY PERIOD ACCORDING TO AN ESTIMATE FROM WARD'S AUTOMOTIVE REPORTS CHRYSLER DOESN'T REPORT 10DAY SALES 9303250105 930325 WHO'S NEWS ICN BIOMEDICALS TAPS PARENT'S MACDONALD TO BE ITS PRESIDENT COSTA MESA CALIF TROUBLED ICN BIOMEDICALS INC NAMED A NEW PRESIDENT BILL A MACDONALD FROM THE EXECUTIVE RANKS OF ITS PARENT COMPANY MR MACDONALD 45 YEARS OLD SUCCEEDS RICHARD M FALLIS WHO REMAINS CHIEF OPERATING OFFICER MR MACDONALD WAS AN EXECUTIVE VICE PRESIDENT OF ICN PHARMACEUTICALS INC WHICH OWNS 86 OF ICN BIOMEDICALS MR FALLIS 57 ASSUMED BOTH POSTS IN JULY WHEN MILAN PANIC CHIEF EXECUTIVE OFFICER OF BOTH ICN BIOMEDICALS AND ICN PHARMACEUTICALS TOOK A LEAVE OF ABSENCE TO SERVE AS PRIME MINISTER OF YUGOSLAVIA MR PANIC WHO HAS GENERALLY HAD HIS WAY AT ICN AND ITS SUBSIDIARIES APPARENTLY IS MAKING HIS PRESENCE FELT AFTER OFFICIALLY RESUMING HIS CORPORATE DUTIES EARLIER THIS MONTH ICN BIOMEDICALS HAS SAID ITS FOURTHQUARTER RESULTS WILL INCLUDE A 73 MILLION CHARGE FOR WRITEOFFS OF GOODWILL AND OBSOLETE INVENTORY 9303250104 930325 LETTERS TO THE EDITOR QUALITY TIME YOUR PAGEONE ARTICLE ON ROBERT DICK PERPETUAL TEA TIME MAY COME TO AN END FOR TOP US TASTER FEB 23 IS FASCINATING BUT ALSO DISTURBING I AM SADDENED TO KNOW THAT PRESIDENT CLINTON WOULD CONSIDER ABOLISHING A TRULY OUTSTANDING QUALITY EXPERT AS A COSTEFFECTIVE MEASURE I THINK THIS TYPE OF MENTALITY IS IN LARGE PART RESPONSIBLE FOR OUR CURRENT ECONOMIC SITUATION IF ANYTHING WE SHOULD BE SPENDING MORE ON QUALITY PERHAPS A MORE ENLIGHTENED APPROACH WOULD BE TO GATHER TOGETHER SEVERAL TOPNOTCH QUALITYCONTROL PEOPLE CLEARLY MR DICK'S EXPERTISE COULD BE BENEFICIAL TO OTHERS I UNDERSTAND THAT TECHNOLOGY IS A CONSIDERABLE MONEY GENERATOR HOWEVER I HAVE YET TO USE A COMPUTER THAT WHO CAN IDENTIFY THE SPECIFIC GARDEN FROM WHICH A TEA IS GROWN 9303250103 930325 INTERNATIONAL ELF SANOFI NET PROFIT RISES 94 PARIS FRENCH PHARMACEUTICALS AND COSMETICS GROUP ELF SANOFI SA SAID 1992 NET GROUP PROFIT ROSE 94 TO 105 BILLION FRANCS 1885 MILLION SLIGHTLY BELOW PREVIOUS COMPANY PROJECTIONS OF EARNINGS GROWTH OF AT LEAST 10 ELF SANOFI A UNIT OF THE STATECONTROLLED OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE SAID IT WOULD INCREASE ITS NET DIVIDEND BY ONE FRANC TO 24 FRANCS 433 A SHARE ELF SANOFI SAID IN A RELEASE THAT IT CONSIDERS THE 1992 FINANCIAL RESULTS TO BE VERY SATISFYING THE NET DEBTTOEQUITY RATIO DROPPED TO 17 FROM 22 IN 1991 INVESTMENTS HELD AT 15 BILLION FRANCS 9303250102 930325 INTERNATIONAL GERMANY TO LET AIR FORCE HELP IN BOSNIA AIRLIFT BONN TO ALSO JOIN FLOTILLA BUT DEBATE CONTINUES OVER ROLE WITH AWACS BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN CHANCELLOR HELMUT KOHL'S CABINET AGREED TO LET THE GERMAN AIR FORCE HELP THE US PARACHUTE FOOD AND OTHER CIVILIAN SUPPLIES INTO BESEIGED BOSNIAHERZEGOVINA THREE AIR FORCE CARGO PLANES WILL TAKE PART IN THE AIRDROPS BEGINNING IMMEDIATELY GERMAN OFFICIALS SAID BONN ALSO ANNOUNCED THAT GERMAN PATROL BOATS WOULD JOIN A 10NATION FLOTILLA ON THE DANUBE RIVER IN ROMANIA AND HUNGARY TO ENFORCE A UNITED NATIONS EMBARGO ON SERBIA WHOSE FORCES ARE ATTACKING BOSNIA'S MOSTLY MUSLIM POPULATION BUT THE DEBATE CONTINUES OVER WHETHER GERMANS CAN SERVE ON AWACS RECONNAISSANCE PLANES MONITORING THE REGION IN THE EVENT THE UN DECIDES TO ENFORCE A FLIGHT BAN ON BELLIGERENTS THERE THE AID FLIGHTS ARE CONSIDERED A PURELY HUMANITARIAN RELIEF EFFORT WHICH MEANS BONN DOESN'T SEE THEM CLASHING WITH THE NATION'S CONSTITUTIONAL BAN ON PARTICIPATING IN MILITARY OPERATIONS OUTSIDE THE NORTH ATLANTIC TREATY ORGANIZATION MR KOHL'S GOVERNMENT IS TRYING TO PUSH THROUGH A CONSTITUTIONAL CHANGE TO EXPLICITLY PERMIT SUCH PARTICIPATION THE GERMAN MOVE TO TAKE PART IN THE FLIGHTS IS THE MOST EXTENSIVE GERMAN INVOLVEMENT IN THE BALKANS SINCE WORLD WAR II AND IS LIKELY TO STIR ANGER IN SERBIA WHICH HAS ACCUSED GERMANY OF HARBORING TERRITORIAL AMBITIONS IN THE REGION THE GERMAN DISPUTE OVER AWACS AN ACRONYM FOR AIRBORNE WARNING AND CONTROL SYSTEM SHOWS HOW TORTURED THE DEBATE HAS BECOME BECAUSE AWACS WHOSE RADAR CAN MONITOR AIR TRAFFIC OVER WIDE AREAS MIGHT BE USED TO DIRECT FIRE AGAINST PLANES VIOLATING A NOFLY ZONE IN BOSNIA GERMAN FOREIGN MINISTER KLAUS KINKEL SAYS GERMANS CAN'T PARTICIPATE THAT'S THE VIEW OF MR KINKEL'S FREE DEMOCRATIC PARTY THE JUNIOR PARTNER IN BONN'S CENTERRIGHT COALITION THE FREE DEMOCRATS AREN'T OPPOSED IN PRINCIPLE TO GERMAN PARTICIPATION IN MILITARY OPERATIONS OUTSIDE NATO BUT THEY INSIST BONN NEEDS A CONSTITUTIONAL CHANGE TO DO IT MR KOHL'S CHRISTIAN DEMOCRATIC UNION ARGUES THAT THE CURRENT CONSTITUTION CAN BE INTERPRETED TO ALLOW SUCH PARTICIPATION THE CLASH HAS SPARKED A TENSE DISPUTE WITHIN THE COALITION GOVERNMENT OFFICIALS IN BONN SAY MR KOHL WON'T PUSH THE ISSUE TO THE POINT OF CAUSING A COALITION BREAKUP BUT IT'S UNCLEAR HOW IT CAN BE RESOLVED YESTERDAY LEADERS OF THE FREE DEMOCRATS AND CHRISTIAN DEMOCRATS WERE FEVERISHLY TRYING TO FORGE A COMPROMISE THE GOVERNMENT IS WORRIED THE DISPUTE COULD TARNISH BONN'S IMAGE AS AN ALLY AND UNDERMINE THE UNITY OF NATO THE AWACS PLANES NOW MONITORING FORMER YUGOSLAVIA ARE BASED IN NORTHERN GERMANY AND ARE COMMANDED BY A GERMAN A THIRD OF THE CREWS ARE GERMAN THE DANUBE FLOTILLA UNDER SPONSORSHIP OF THE WESTERN EUROPEAN UNION WILL DECIDE ON APRIL 5 WHEN TO SEND THE PATROL BOATS GERMAN OFFICIALS SAID NO DECISION HAS BEEN MADE ON WHETHER THE GERMAN PATROL BOATS WILL BE ARMED 9303250101 930325 WHO'S NEWS CLINICORP INC CLINICORP INC PINELLAS PARK FLA CHARLES D RAVENEL WAS NAMED A DIRECTOR OF THIS HEALTHCARE MANAGEMENT COMPANY INCREASING THE BOARD TO EIGHT MEMBERS MR RAVENEL IS CHAIRMAN OF CAPITAL SOUTH CORP A CHARLESTON SC MERCHANTINVESTMENT BANK 9303250100 930325 WOULD 007 APPROVE ASTON MARTIN MAKES A NEW CHEAP' CAR WE SHOULDN'T REALLY SAY A LOT BUT IT COSTS ONLY 110000 HOW DI MADE THAT DENT BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL NEWPORT PAGNELL ENGLAND JAMES BOND RACED ONE THROUGH A STRING OF HIT MOVIES AND ELTON JOHN BOUGHT ONE TO MARK THE SUCCESS OF HIS GOODBYE YELLOW BRICK ROAD ALBUM THE SULTAN OF BRUNEI HAS SEVERAL INCLUDING ONE IN THE COLORS OF HIS FLAG BRIGHT YELLOW WITH RED LEATHER INTERIOR THESE ARE JUST SOME OF THE TIDBITS YOU QUICKLY PICK UP AT ASTON MARTIN LAGONDA LTD ONE OF THE WORLD'S MOST EXCLUSIVE MAKERS OF SPORTS CARS THE COMPANY IDENTIFIED WITH SUPERSPY 007 IS SET TO UNVEIL A NEW INEXPENSIVE MODEL BUT IN THE RAREFIED WORLD OF ASTON MARTIN ENTRY LEVEL IS A VERY RELATIVE CONCEPT THE NEW CAR CODENAMED NPX GOES ON SALE NEXT YEAR FOR 110000 ABOUT HALF THE PRICE OF ONE OF THE MORE EXPENSIVE MODELS ONLY I REALLY SHOULDN'T SHOW YOU THIS BUT I SIMPLY MUST SAYS WALTER HAYES THE COMPANY'S VERY BRITISH 68YEAROLD CHAIRMAN AS HE TOSSES A PHOTOGRAPH OF THE NEW CAR ACROSS THE TABLE THE NEW MODEL IS HARDLY A SECRET BUT AT ASTON MARTIN WHICH IS 75 OWNED BY FORD MOTOR CO THE COMPANY'S SELFIMAGE DICTATES A SOMEWHAT KOOKY APPROACH TO SELFPROMOTION BRAGGING ABOUT WEALTHY CUSTOMERS AND PRESTIGIOUS PRODUCTS IS WELL UNSEEMLY BUT THE COMPANY WANTS TO MAKE SURE YOU KNOW JUST HOW SOUGHTAFTER ITS HANDMADE CARS ARE AMONG ROCK STARS AND ROYALTY I REALLY CAN'T SAY MORE SNIFFS DAVID EALES MANAGER OF THE SERVICE DEPARTMENT AS HE STRIDES PAST A ROW OF REPAIR STALLS HE HAS JUST LET SLIP THAT THE PRINCE OF WALES HAS HIS BLUE ASTON MARTIN DB6 BROUGHT IN FOR REGULAR SERVICING AS A RULE HE SAYS WE DON'T TALK ABOUT SUCH THINGS SECURITY YOU KNOW NOT THAT YOU NEED TO BE A GENIUS TO FIGURE IT OUT MR EALES'S BUSINESS CARD BEARS THE INSCRIPTION BY APPOINTMENT TO HIS ROYAL HIGHNESS THE PRINCE OF WALES MOTOR CAR MANUFACTURER AND REPAIRER TO BE SURE EVERY PRESTIGE NAME IN THE AUTO INDUSTRY PORSCHE FERRARI LAMBORGHINI TRAFFICS ON IMAGE BUT HERE AT ASTON MARTIN'S REDBRICK HEADQUARTERS THEY WALLOW IN IT DESPITE THE SUPPOSED BAN ON BLABBING ABOUT THE ROYALS FOR INSTANCE NEARLY EVERYONE AT THE PLANT MANAGES TO DROP PRINCE CHARLES'S NAME AT LEAST ONCE THEY EVEN TALK ABOUT THE ASTON MARTIN JUNIOR THE PRINCE BOUGHT HIS TWO SONS THE TINY 25000 MODEL HAS REAL LEATHER SEATS TURN SIGNALS HEADLIGHTS AND A 10HORSEPOWER LAWNMOWER ENGINE THE WORLD IS FULL OF SULTANS AND PRINCES WHO SWEAR BY OUR CARS SAYS MR HAYES THE CHAIRMAN HE ADDS THAT HE KNOWS IT SOUNDS BIZARRE BUT HIS CUSTOMERS ACTUALLY FEEL BETTER AFTER THEY'VE DRIVEN THEIR ASTON MARTINS BUT AN ULTRAEXCLUSIVE IMAGE ISN'T ENOUGH TO ASSURE SURVIVAL ANYMORE MR HAYES A FORMER FORD EXECUTIVE BECAME CHAIRMAN LAST YEAR WITH THE GOAL OF PUTTING THE COMPANY ON A FIRMER FOOTINGBEGINNING WITH THE NEW CHEAP MODEL FORD BOUGHT INTO THE COMPANY IN 1987 WHEN SALES OF SUPEREXPENSIVE CARS WERE BOOMING EVEN IN 1989 ITS PEAK YEAR ASTON MARTIN SOLD ONLY ABOUT 240 CARS THAT WAS ENOUGH TO EARN A COMFORTABLE PROFIT MR HAYES SAYS BUT WITH SALES PLUNGING TO JUST 127 LAST YEAR ASTON MARTIN IS NOW IN THE RED ALONG WITH THE REST OF FORD'S EUROPEAN OPERATIONS FOR A WHILE IN THE 1980S ASTON MARTIN WAS SELLING A QUARTER OF ITS CARS IN THE US ABOUT 50 A YEAR BUT DISASTER HIT IN 1991 A COMBINATION OF THE US'S 10 LUXURY EXCISE TAX THE GULF WAR AND THE SLUMP IN ALL TYPES OF LUXURY CAR SALES STOPPED THEM COLD AND IN 1992 NO ASTON MARTINS WERE SOLD IN THE US MR HAYES REMAINS OPTIMISTIC THOUGH AND SAYS HE HOPES TO SELL 200 CARS A YEAR IN THE US BY 1995 AND HE FIGURES HE CAN EVENTUALLY SELL 625 OF THE NEW CHEAPER MODELS A YEAR GIVING THE COMPANY THE VOLUME NEEDED TO SUPPORT OTHER ACTIVITIES MAKING MONEY HAS ALWAYS BEEN A PROBLEM AT ASTON MARTIN A COMPANY BROCHURE DESCRIBING THE FIRM'S HISTORY REPEATEDLY MENTIONS FINANCIAL DIFFICULTIES OVER THE YEARS THE PEOPLE WHO RAN ASTON MARTIN TENDED TO BE RICH GENTLEMEN RATHER THAN BUSINESSMEN MR HAYES CONCEDES THEY WERE MORE CONCERNED WITH EXCELLENT ENGINEERING THAN WITH MAKING MONEY MR HAYES MAY FACE HIS OWN PROBLEMS WITH THE BOTTOM LINE MANY OF THE WORLD'S SPORTSCAR MAKERS ARE LOCKED IN BITTER COMPETITION IN THE 100000 PRICE RANGE IT WOULD BE SMARTER TO STICK WITH WHAT THEY'RE BESTKNOWN FOR BUILDING AND SELLING CARS FOR THE SUPERRICH SAYS ONE LONDONBASED AUTO ANALYST ONE OF THE DANGERS THE COMPANY FACES IS THAT THE NEW CARS WON'T BE CONSIDERED REAL ASTON MARTINS THERE WILL BE PLENTY OF REASONS BUYERS MIGHT WONDER FOR INSTANCE RATHER THAN USING THE COMPANY'S TRADITIONAL METHOD OF FASTENING HANDCRAFTED ALUMINUM PARTS ONTO A METAL FRAME THE NEW CAR WILL BE MADE OF PRESSED STEEL LIKE ANY OTHER CAR WHATEVER HAPPENS WITH THE NEW CAR THE FACTORY THAT PRODUCES THE CURRENT MODELS WILL PROBABLY STAY STUCK IN ITS TIME WARP GUIDING THE WAY PAST A SERIES OF CLUTTERED WORKSTATIONS IN THE METAL SHOP NICK FRY THE OPERATIONS DIRECTOR POINTS TO WHAT LOOKS LIKE THE FRAME OF A DUNE BUGGY BY THE TIME THE FRAME LEAVES THIS PART OF THE FACTORY HE SAYS IT WILL BE SHEATHED IN ALUMINUM EACH PIECE OF WHICH WAS TAPPED INTO SHAPE WITH WOODEN MALLETS BY MASTER CRAFTSMEN IT TAKES A CERTAIN KIND OF BUYER TO APPRECIATE SUCH THINGS A FEW CUSTOMERS WANT AN ASTON MARTIN STATION WAGON SO BADLY THEY ARE WILLING TO PAY 275000 AND WAIT SIX MONTHS FOR A HANDBUILT VERSION OF COURSE DON'T TRY CALLING IT A STATION WAGON AT ASTON MARTIN IT IS A SHOOTING BRAKE SINCE IT IS SEEN AS THE ULTIMATE GENTLEMEN'S SHOOTING VEHICLE AND COMES WITH A SPECIALLY DESIGNED GUN RACK TO FULLY APPRECIATE THE AIR THAT WAFTS THROUGH THIS COMPANY YOU NEED TO GO TO THE SERVICE DEPARTMENT HERE IN A DOUBLE ROW OF TIDY WORK BAYS STAND THE CARS OF SOME OF THE WORLD'S WEALTHIEST PEOPLE PRINCE CHARLES HAD HIS DB6 RUSHED HERE FOR REPAIRS AFTER DIANA SPENCER THEY WERE STILL COURTING AT THE TIME LEANED ON THE HOOD TO POSE FOR PHOTOGRAPHERS AND LEFT A DENT IN THE SOFT ALUMINUM THE PRINCE WAS FURIOUS RECALLS MR EALES THE SERVICE MANAGER BEFORE CATCHING HIMSELF BUT WE REALLY CAN'T TALK ABOUT THAT HE ALSO DOESN'T LIKE DISCUSSING WRECKS THE HULKS OF TWISTED ASTON MARTINS BROUGHT IN FOR BODY WORK ARE REVERENTLY DRAPED IN CANVAS AND MR EALES WON'T EVEN USE THE WORD WRECK IN ASTON MARTINSPEAK SUCH CARS ARE CALLED VICTIMS OF MAJOR IMPACTS STEPPING ALONG THE ROW OF CARS MR EALES IS STARTLED TO FIND A BLACK 1988 LAGONDA EXPOSED SHOWING ITS HEAVILY IMPACTED FRONT END THIS MUST HAVE JUST ARRIVED HE SPUTTERS IT SHOULD REALLY BE COVERED THE MUNICH PLATES MAKE CLEAR THIS IS ONE OF THE VICTIMS OF GERMANY'S NOSPEEDLIMIT HIGHWAYS MR EALES OF COURSE CAN'T TALK ABOUT WHAT HAPPENED MR EALES POINTS TO HIS BIGGEST CHALLENGE A 1965 DB4 THAT CAME FROM THE US IN A SHIPPING CRATE IT WAS SO CORRODED IT CRUMBLED INTO TWO PIECES WHEN HOISTED OUT OF THE BOX CRAFTSMEN WILL SPEND AT LEAST A YEAR AT A COST OF ABOUT 220000 RESTORING THE CAR TO ITS ORIGINAL GLORY INCLUDING CRAFTING COPIES OF THE ORIGINAL GLASS CONTAINERS FOR ENGINE LIQUIDS AND WRAPPING NEW WIRING INSIDE THE ORIGINAL CANVAS COVERINGS MR EALES ADMITS IT WOULD PROBABLY BE CHEAPER FOR THE OWNER TO BUY A USED ASTON MARTIN IN BETTER SHAPE HE EVEN TOLD THE AMERICAN OWNER AS MUCH BUT THE OWNER DIDN'T CARE YOU CAN'T EXPLAIN WHAT MOTIVATES THE OWNER OF AN ASTON MARTIN SAYS MR EALES IT'S A MIX OF EMOTIONS AND OF COURSE THE LEVEL OF WEALTH THAT ALLOWS THEM TO SAY THEY WANT SOMETHING REGARDLESS OF THE COST 9303250099 930325 LETTERS TO THE EDITOR RACIAL COMPOSITION OFTEN VITAL IN JURIES IN THE MARCH 3 OPED RULE OF LAW COLUMN LIKE JUSTICE JURY SELECTION SHOULD BE COLORBLIND ELIZABETH MCCAUGHEY ARGUES THAT MAKING RACE A FACTOR IN RELOCATING TRIALS WILL BALKANIZE THE LEGAL SYSTEM AS THE AUTHOR OF THE HARVARD LAW REVIEW NOTE SHE CRITICIZES I MUST RESPOND THE ISSUE IS NOT SOME POTENTIAL BALKANIZATION OF THE LEGAL SYSTEM THE ISSUE IS THE VERY REAL BALKANIZIATION OF OUR SOCIETY AND WHETHER OUR LEGAL SYSTEM RECOGNIZES IT OR REMAINS BLIND TO REALITY MY ARGUMENT IS NOT THAT RACE SHOULD BE INJECTED INTO AN OTHERWISE COLORBLIND PROCESS BUT RATHER THAT A MOVE FROM AN URBAN HETEROGENEOUS COMMUNITY TO A SUBURBAN HOMOGENEOUS COMMUNITY HAS AN EFFECT ON THE RACIAL COMPOSITION OF THE JURY CONSIDERING RACE WHEN RELOCATING A TRIAL IS A MEANS OF PRESERVING THE ORIGINAL RACIAL COMPOSITION NOT FORCING ANY IDEAL BASED ON RACIAL STEREOTYPES MS MCCAUGHEY ASKS ARE WE PREPARED TO SAY THAT ACROSS THE US A CULTURAL CHASM SEPARATES CITY FROM SUBURB LOS ANGELES FROM SIMI VALLEY PERHAPS FROM AN IVORY TOWER IT IS POSSIBLE TO ASK SUCH A QUESTION BUT FOR THOSE OF US IN THE REAL WORLD THERE IS NO QUESTION THERE ARE CULTURAL CHASMS THAT THREATEN TO RIP OUR SOCIETY APART WHETHER MS MCCAUGHEY IS PREPARED TO ACCEPT THIS FACT OR NOT FOR THE REST OF US THE QUESTION IS HOW TO DEAL WITH IT 9303250098 930325 TECHNOLOGY & HEALTH DC LOCOMOTIVES NEAR END OF THE LINE AFTER 50YEAR RUN ON US RAILROADS BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL AFTER 50 YEARS AS THE WORKHORSE OF US RAILROADS THE DIRECTCURRENT LOCOMOTIVE IS FINALLY ON THE WAY OUT AND SO ARE THOSE LONG TRAINS THAT NEED FOUR OR FIVE LOCOMOTIVES TO STRUGGLE OVER MOUNTAINS THAT'S THE SIGNIFICANCE OF BURLINGTON NORTHERN RAILROAD'S ANNOUNCEMENT LAST WEEK THAT IT'S ORDERING 350 NEW LOCOMOTIVES MADE BY GENERAL MOTORS CORP WITH NEW ALTERNATINGCURRENT TRACTION MOTORS EXECUTIVES AT OTHER RAILROADS ARE WATCHING BURLINGTON'S MOVE CLOSELY AND SOME SAY THEY EXPECT TO FOLLOW SUIT DIESELELECTRIC LOCOMOTIVES HAVE USED DC MOTORS EVER SINCE THEY DROVE STEAM ENGINES OFF THE RAILS IN THE 1930S AND 1940S THE RAILROADS HOWEVER LONG HAVE YEARNED TO USE AC MOTORS IN THEIR LOCOMOTIVES AC MOTORS WHICH HAVE BEEN THE WORKHORSES IN ALL OTHER INDUSTRIES SINCE THE BEGINNING OF THE CENTURY ARE MORE EFFICIENT USERS OF ELECTRIC POWER AND CAN DELIVER MORE PULLING POWER PER POUND IN A LOCOMOTIVE FACTORIES USE AC MOTORS BECAUSE THEY RECEIVE THEIR ELECTRIC POWER AS ALTERNATING CURRENT FROM THE LOCAL UTILITY LOCOMOTIVES ON THE OTHER HAND GET THEIR POWER FROM DIESEL GENERATORS THAT PRODUCE DIRECT CURRENT UNTIL NOW THE EQUIPMENT REQUIRED TO CONVERT DIRECT CURRENT INTO ALTERNATING CURRENT HAS BEEN FAR TOO EXPENSIVE CUMBERSOME AND INEFFICIENT TO ALLOW LOCOMOTIVES TO USE AC MOTORS NOW HOWEVER ENGINEERS AT GM'S ELECTROMOTIVE DIVISION SAY THE DCAC CONVERSION PROBLEM HAS BEEN OVERCOME WORKING IN PARTNERSHIP WITH SIEMENS TRANSPORTATION SYSTEMS A SUBSIDIARY OF SIEMENS AG OF GERMANY THE COMPANIES HAVE DEVELOPED AN INVERTER TECHNOLOGY TO CONVERT DIRECT CURRENT TO ALTERNATING CURRENT THAT'S BOTH COMPACT AND CHEAP ENOUGH TO BE USED IN LOCOMOTIVES GM BRAGS THAT THE NEW SD70MAC AS IT CALLS THE LOCOMOTIVE ALSO IS EQUIPPED WITH ANOTHER INNOVATION THE LOCOMOTIVE'S THREEAXLE TRUCKS ALLOW THE LEAD AXLE TO BEGIN TURNING ON A CURVE BEFORE THE OTHERS THIS REDUCES FRICTION ON CURVES AND IMPROVES TRACTION SAYS JAMES TRIPPEL AN ELECTROMOTIVE PROGRAM MANAGER ELECTROMOTIVE'S BIGGEST COMPETITOR GENERAL ELECTRIC CORP PLANS TO DEMONSTRATE A PROTOTYPE OF A LOCOMOTIVE USING AC MOTORS LATER THIS YEAR WE WILL HAVE SOME PRODUCT TECHNOLOGY ADVANTAGES ACCORDING TO A GE SPOKESMAN WHO DECLINED TO GIVE DETAILS ADVOCATES SAY AC MOTORS HAVE THE INHERENT ABILITY TO REDUCE OPERATING AND MAINTENANCE COSTS AND INCREASE HORSEPOWER AND TRACTION IN LOCOMOTIVES IN A DC MOTOR A ROTATING CYLINDER MUST TOUCH ELECTRIC CONTACTS CALLED BRUSHES THE BRUSHES ARE HIGHMAINTENANCE ITEMS WHICH WEAR OUT AND MUST BE REPLACED PERIODICALLY THEY ALSO TAKE UP SPACE WHICH LIMITS THE CAPACITY OF THE MOTOR AC MOTORS DON'T REQUIRE CONTACT BRUSHES BECAUSE THEY USE THE ALTERNATING CHARACTERISTICS OF THE CURRENT AS THE CURRENT RAPIDLY ALTERNATES ITS DIRECTION OF FLOW MAGNETS ALTERNATELY ATTRACT AND REPEL A CYLINDER CAUSING IT TO ROTATE BURLINGTON NORTHERN A UNIT OF BURLINGTON NORTHERN INC OF FORT WORTH TEXAS SAID IT WAS ENCOURAGED BY THE PULLING POWER OF THE THREE AC LOCOMOTIVES IT HAS BEEN TESTING SINCE LAST JULY IN ONE TEST LAST OCTOBER THREE ACPOWER LOCOMOTIVES MOVED A HEAVY BURLINGTON NORTHERN COAL TRAIN FROM A STANDSTILL ON A STEEP HILL NEAR WALSENBURG COLO IT WOULD HAVE TAKEN AT LEAST FOUR DC UNITS TO GET STARTED ON THIS PARTICULAR HILL SAYS STEPHEN PETRACEK BURLINGTON NORTHERN'S DIRECTOR OF COMPETITIVE ANALYSIS WHO WAS ABOARD THE TRAIN BURLINGTON WHOSE FAMOUS DIESELELECTRIC STREAMLINER THE ZEPHYR HELPED DRIVE STEAM ENGINES OFF THE TRACKS SAID IT WILL SPEND MORE THAN 675 MILLION FOR THE NEW LOCOMOTIVES THE COMPANY SAID EIGHT OF THE 4000HORSEPOWER LOCOMOTIVES WILL BE DELIVERED IN 1993 AND BETWEEN 60 AND 100 ADDITIONAL LOCOMOTIVES WILL BE DELIVERED EACH YEAR FROM 1994 TO 1997 OTHER RAILROADS INCLUDING CONSOLIDATED RAIL CORP AND UNION PACIFIC CORP SAY THEY EXPECT AC LOCOMOTIVES EVENTUALLY TO BECOME THE NORM FOR MAINLINE RAILROAD OPERATIONS AMTRAK HAS ALREADY TESTED AN ACLOCOMOTIVE PROTOTYPE THE ASSOCIATION OF AMERICAN RAILROADS A TRADE GROUP HAS ASKED LOCOMOTIVE MAKERS TO SUBMIT PROPOSALS FOR 5000 HORSEPOWER AC LOCOMOTIVES BUT SOME RAILROADS STILL HAVE RESERVATIONS ABOUT AC LOCOMOTIVES WHICH HAVE BEEN USED ON EUROPEAN PASSENGER TRAINS FOR MORE THAN A DECADE WHETHER THEY DO AS WELL IN THIS COUNTRY WITH HEAVIER TRAINS HAS TO BE PROVED SAID BOB RUNYON LOCOMOTIVEDESIGN ENGINEER AT NORFOLK SOUTHERN CORP IN ADDITION MR RUNYON SAID AC LOCOMOTIVES COST PERHAPS 20 TO 30 MORE THAN EQUIVALENT DC LOCOMOTIVES A HEAVYDUTY SIXAXLE MAINLINE DC LOCOMOTIVE GENERALLY COSTS IN THE RANGE OF 12 MILLION TO 15 MILLION 9303250097 930325 FINANCING BUSINESS OFFSHORE PIPELINES INC OFFSHORE PIPELINES INC HOUSTON THE MARINE CONSTRUCTION AND ENERGY SERVICE CONCERN SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AN OFFERING OF FOUR MILLION COMMON SHARES THE OFFERING CONSISTS OF 25 MILLION PRIMARY SHARES AND 15 MILLION SHARES TO BE SOLD BY CERTAIN SHAREHOLDERS THE COMPANY'S CHIEF EXECUTIVE OFFICER AND CHAIRMAN FRANK C WADE WILL SELL 500000 SHARES REDUCING HIS STAKE IN OFFSHORE PIPELINES TO ABOUT 166 OF THE STOCK OUTSTANDING THE COMPANY SAID THE PROCEEDS FROM THE PRIMARY SHARES OFFERING WILL BE USED TO REDUCE DEBT LEHMAN BROTHERS AND BEAR STEARNS & CO ARE MANAGERS 9303250096 930325 INTERNATIONAL JAPAN VEHICLE OUTPUT FALLS 12 TOKYO JAPAN'S PRODUCTION OF CARS TRUCKS AND BUSES IN FEBRUARY DROPPED 12 FROM A YEAR EARLIER TO 1043000 UNITS THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID BUT PASSENGER CAR PRODUCTION HAD ITS FIRST INCREASE IN FIVE MONTHS RISING 11 TO 792837 UNITS HELPED BY THE 96 INCREASE IN MEDIUMSIZE PASSENGER CAR PRODUCTION TO 228748 UNITS SOME OBSERVERS CITE EFFORTS BY MANUFACTURERS AHEAD OF THE MARCH 31 EARNINGS TERM TO BOOST DELIVERIES OF MEDIUMSIZE CARS WHICH HAVE RELATIVELY HIGH MARGINS MEANWHILE THE DECREASE IN PRODUCTION OF SMALL PASSENGER CARS AND TRUCKS CONTINUED OUTPUT OF SMALL PASSENGER CARS WHICH MAKE UP THE LARGEST PART OF JAPAN'S VEHICLE MARKET WAS DOWN 32 TO 493686 UNITS 9303250095 930325 LETTERS TO THE EDITOR FEAR AND ANGER BORN OF IGNORANCE YOUR EXCELLENT FEB 26 PAGEONE ARTICLE ACROSS THE RIVER DEATH OF A TEENAGER WIDENS A RACIAL RIFT BETWEEN TWO TOWNS SHOULD BE REQUIRED READING FOR ANYONE WHO NEEDS TO BE ENLIGHTENED ABOUT THE EFFECTS OF PUTATIVELY RACIST INCIDENTS IN HIGHLY POLARIZED COMMUNITIES THE RIOTS IN SOUTH CENTRAL LOS ANGELES IN THE WAKE OF THE RODNEY KING TRIAL AND THE ANGER IN NEW YORK CITY BETWEEN HASIDIC JEWS AND BLACKS AFTER THE CROWN HEIGHTS AFFAIR HAVE RECEIVED NATIONAL NOTORIETY HOWEVER AN INCIDENT SUCH AS THE PLIGHT OF THE TOWNSPEOPLE IN ST JOSEPH AND BENTON HARBOR MICH AFTER THE DEATH OF ERIC MCGINNIS ORDINARILY IS NOT GIVEN ANY ATTENTION OUTSIDE THE COMMUNITIES WHERE THESE TRAGEDIES OCCUR MR MCGINNIS'S DEATH WHICH HAS NOT BEEN PROVED TO BE EITHER MURDER OR RACIALLY MOTIVATED CAUSED FEAR AND ANGER BORN OF IGNORANCE TO RUN RAMPANT AMERICANS NEED TO UNDERSTAND THAT RACISM IS NOT JUST A BIG CITY PROBLEM BUT OCCURS IN SMALL COMMUNITIES AS WELL COMMUNITIES MUST UNDERSTAND THAT WHEREVER DE FACTO SEGREGATION EXISTS THERE IS A LIKELIHOOD OF VIOLENCE FROM EVENTS LIKE THESE IN THE WAKE OF THESE INCIDENTS I WOULD HOPE AMERICANS HAVE LEARNED THEIR LESSON ABOUT DISTRUSTING OTHERS SIMPLY BECAUSE THEY ARE DIFFERENT FROM THEMSELVES BUT I DOUBT IT 9303250094 930325 CREDIT RATINGS GPA GROUP UNITS RECEIVE DOWNGRADES FROM S&P ON DEBT NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED ITS RATINGS ON THE SENIOR SECURED DEBT OF TWO GPA GROUP PLC SUBSIDIARIES REFLECTING UNCERTAINTY OVER THE AIRCRAFT LESSOR'S FINANCES ABOUT 2 BILLION OF DEBT IS AFFECTED THE UNITS DOWNGRADED ARE GPA LEASING USA 1 INC AND GPA LEASING USA SUB 1 INC TO TRIPLECPLUS FROM DOUBLEB ALSO LOWERED IS THE SENIOR UNSECURED DEBT OF GPA HOLLAND BV GPA INVESTMENTS BV AND GPA DELAWARE INC TO TRIPLECMINUS FROM SINGLEBPLUS S&P SAID THE RATINGS ARE STILL ON ITS CREDITWATCH BUT CREDIT IMPLICATIONS ARE REVISED TO DEVELOPING' FROM NEGATIVE INDICATING THAT RATINGS COULD BE RAISED OR LOWERED S&P SAID THE DOWNGRADES ARE BASED ON INCREASED UNCERTAINTY REGARDING GPA GROUP'S ABILITY TO RAISE 200 MILLION OF NEW EQUITY AND ON AN EXPECTED VERY SUBSTANTIAL PROVISION TO COVER COSTS OF ITS RESTRUCTURING PROGRAM IT SAID THAT GPA HAS SO FAR BEEN UNABLE TO OBTAIN COMMITMENTS FOR THE FULL AMOUNT OF ITS PROPOSED CONVERTIBLE PREFERENCE SHARES FROM EXISTING SHAREHOLDERS AND HAS WIDENED ITS DISCUSSIONS TO INCLUDE NEW OUTSIDE INVESTORS S&P ALSO SAID EXISTING COMMITMENTS TO RESTRUCTURE BANK DEBT AND CONCESSIONS FROM SOME AIRCRAFT MANUFACTURERS ARE CONTINGENT ON RAISING THE NEW EQUITY ACCORDINGLY FAILURE TO DO SO COULD ENDANGER THOSE AGREEMENTS AND AS A CONSEQUENCE LIKELY CAUSE GPA TO DEFAULT ON ITS UNSECURED DEBT GPA IS EXPECTED TO INCLUDE A VERY SUBSTANTIAL SPECIAL PROVISION IN ITS RESULTS FOR THE FISCAL YEAR ENDING MARCH 31 S&P SAID THIS WILL COVER COSTS OF THE REVISED AIRCRAFT DELIVERY SCHEDULE DEPOSITS AT RISK WITH MANUFACTURERS WHO HAVE NOT AGREED TO DELIVERY SCHEDULE CHANGES WRITEDOWN OF SOME ASSETS AND COSTS ASSOCIATED WITH THE FINANCIAL RESTRUCTURING THE CHARGE WILL SERIOUSLY WEAKEN GPA'S BALANCE SHEET ALTHOUGH THE COMPANY'S FLEET OF LEASED PLANES CONTINUES TO HAVE HIDDEN ASSET VALUE LITTLE OF THE CHARGE INVOLVES A CASH OUTLAY ALTHOUGH A PORTION COVERS FORFEIT OF DEPOSITS WITH SUPPLIERS REPRESENTATIVES OF GPA GROUP BASED IN SHANNON IRELAND COULDN'T IMMEDIATELY BE REACHED FOR COMMENT 9303250093 930325 REVIEW & OUTLOOK EDITORIAL BEWARE THE VAT AL ULLMAN WAS THE POWERFUL CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE UNTIL IN 1980 HE DECIDED TO HITCH HIS CAREER TO THE PROMOTION OF A NATIONAL SALES TAX HE WAS VOTED OUT OF OFFICE MOST POLITICIANS KNOW THIS STORY BUT THEY FIGURE THE VOTERS HAVE FORGOTTEN AND SO THIS WEEK SENATOR ERNEST HOLLINGS WILL OFFER AN AMENDMENT TO SUBSTITUTE A VALUE ADDED TAX FOR BILL CLINTON'S ENERGY TAX CLINTON ADVISERS ROGER ALTMAN AND IRA MAGAZINER HAVE STRONGLY SUGGESTED THAT A VAT WHICH WOULD TAX BUSINESSES ON THE VALUE THEY ADD TO A PRODUCT MIGHT BE NEEDED TO FINANCE NATIONAL HEALTH CARE DEPUTY OMB DIRECTOR ALICE RIVLIN HAS WRITTEN THAT EACH STATE SHOULD HAVE ITS OWN VAT AND PRESIDENT CLINTON HAS SAID THAT A VAT MAY BE DESIRABLE NOT TOO LONG IN THE FUTURE WELL IS IT REALLY TRUE THAT VOTERS NO LONGER THINK OF THIS TAX AS A TOXIC SUBSTANCE FOR A REFRESHER COURSE IN THE SUBJECT PLEASE CONSULT JOHN HEWSON THE AUSTRALIAN CONSERVATIVE LEADER WHO JUST WENT DOWN IN FLAMES IN THAT COUNTRY'S NATIONAL ELECTIONS THIS MONTH HIS LIBERAL PARTY LOST TO THE LABOR PARTY FOR THE FIFTH STRAIGHT TIME MR HEWSON KNOWS EXACTLY HOW HIS PARTY BLEW A 12POINT LEAD IF ANYTHING THIS ELECTION WAS A REFERENDUM ON THE GENERAL SALES TAX HIS PARTY PROPOSED HE SAID MR HEWSON AN ECONOMIST WANTED TO IMPOSE A 15 NATIONWIDE SALES TAX IN EXCHANGE FOR A REDUCTION IN OTHER TAXES THERE IS A THEORETICAL CASE FOR REPLACING TAXES ON SAVINGS AND INVESTMENT WITH TAXES ON CONSUMPTION SUCH AS A VAT AUSTRALIANS HOWEVER REACTED WITH DISBELIEF AND DISGUST NOT ONLY DID THEY HATE THE IDEA OF ADDING 15 TO EVERY BILL BUT THEY SOON LEARNED THAT IN THE 36 COUNTRIES THAT HAVE EITHER A VAT OR A NATIONAL SALES TAX IT ALMOST ALWAYS HAS BEEN ADDED TO ALREADY EXISTING TAXES MR HEWSON JOINS A LONG LIST OF POLITICIANS AROUND THE WORLD WHO'VE SEEN THEIR CAREERS GO SOUTH AFTER THEY PUSHED CONSUMPTION TAXES BRIAN MULRONEY WHO RESIGNED LAST MONTH AS CANADA'S LEADER PLUNGED IN THE POLLS AFTER IMPOSING A SALES TAX IN 1991 MANY JAPANESE OFFICIALS LOST THEIR JOBS AFTER THE 1989 PUBLIC OUTCRY OVER A 3 VAT GIVEN THIS RECORD WHY ARE POLITICIANS LIKE MOTHS TO A FLAME ATTRACTED TO THE VAT THE VAT IS A GIANT REVENUE MACHINE ITS HUGE ADMINISTRATIVE COSTS MEAN IT ISN'T WORTH IMPLEMENTING AT LESS THAN A 7 RATE IN THE US THAT WOULD BRING IN SOME 210 BILLION A YEAR IN NEW MONEY SENATOR HOLLINGS CONGRESS'S VAT MAN IS UPFRONT ABOUT THIS THE VAT WOULD GENERATE MUCH HIGHER REVENUES THAN PROVIDED FOR IN THE BUDGET RESOLUTION HE SAYS HE NOTES THAT THE TAX HIKES IN THE CLINTON PLAN ARE ALL BUT CANCELED OUT BY PROPOSED SPENDING INCREASES WE HAVE NO CHOICE BUT TO MOVE MORE AGGRESSIVELY ON TAXES BUREAUCRATS LOVE A VAT SINCE IT'S BUILT INTO THE PRICE OF A PRODUCT CONSUMERS ARE LESS AWARE THEY'RE PAYING IT THAT MAKES IT EASY TO JACK UP THE VAT A PERCENTAGE POINT OR TWO SWEDEN INTRODUCED AN 11 VAT IN 1969 IT IS NOW 25 BRITAIN'S BASIC VAT HAS GROWN TO 175 TODAY FROM 10 IN 1973 IN ALMOST EVERY COUNTRY GOVERNMENT SPENDING AND TAXATION HAVE INCREASED FASTER AFTER THE INTRODUCTION OF A VAT THAN BEFORE THE VAST SUMS GENERATED BY A VAT BRING TEMPTATIONS THAT FEW POLITICIANS INCLUDING CONSERVATIVES CAN RESIST SOME US BUSINESS GROUPS ARE ONBOARD THE AMERICAN COUNCIL FOR CAPITAL FORMATION ONCE A HERO IN THE FIGHT FOR CAPITAL GAINS REFORM NOW CLAIMS THAT A VAT WOULD STIMULATE SAVINGS ASSUMING THAT IT ACTUALLY REPLACED OTHER TAXES KEN MILITZER THE CHIEF ECONOMIST FOR AT&T HAS STUDIED 23 OECD COUNTRIES AND FOUND NO LINK BETWEEN THE EXISTENCE OF A VAT AND SAVINGS RATES ENERGY COMPANIES SOCKED BY THE CLINTON TAX PROPOSALS LIKE A VAT BECAUSE THEY THINK IT WOULD BE A NEUTRAL TAX WITH FEW EXEMPTIONS AND ONE RATE BUT ALMOST NO NATION HAS SUCH A VAT ON AVERAGE THEY HAVE THREE RATES AND MANY NATIONS ADD A TAX ON LUXURY GOODS A CATEGORY THAT KEEPS EXPANDING CAR BUYERS IN FRANCE MUST PAY A TOTAL TAX OF BETWEEN 25 AND 333 BELGIUM TAXES RECORDS AND TAPES AS LUXURY GOODS IRELAND SLAPS A 40 TAX ON SOME ELECTRONIC GOODS THE RESULT SAYS MR MILITZER IS THAT A VAT IS PROBABLY EVEN MORE DISCRIMINATORY AMONG DIFFERENT INDUSTRIES THAN THE CORPORATE INCOME TAX BILL CLINTON'S INCENTIVEKILLING TAX INCREASES NO DOUBT MAKE A VAT LOOK APPEALING BUT INSIDERS SHOULDN'T UNDERESTIMATE THE POLITICAL DYNAMITE THEY'RE PLAYING WITH AMERICANS FOR TAX REFORM THE GROUP WHOSE ANTITAX PLEDGE ALMOST SANK THE 1990 BUDGET ACCORD HAS PERSUADED NEARLY ONEFOURTH OF ALL HOUSE MEMBERS TO SIGN ITS ANTIVAT PLEDGE FUNDAMENTALLY THE VAT LIKE THE POLITICIANS WHO PROMISE ITS BENEFITS LACKS CREDIBILITY WITH THE WORLD'S VOTERS 9303250092 930325 PEPPERAND SALT AND SOMEHOW I COULD TELL POPEYE NEVER LOOKED WELL 9303250090 930325 CREDIT MARKETS TREASURY 2YEAR SALE MEETS MODERATE DEMAND BUT WEAK FOLLOWTHROUGH BUYING SPURS SELLOFF BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LACKLUSTER DEMAND IN THE WAKE OF AN AUCTION OF TREASURY NOTES SPURRED A SELLOFF YESTERDAY AFTERNOON THAT PUMMELED PRICES THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 5/8 POINT OR MORE THAN 625 FOR A BOND WITH A 1000 FACE VALUE TO 103 27/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 682 FROM 676 ON TUESDAY THE 10YEAR NOTE DROPPED 1/2 POINT TO 102 2/32 FOR A YIELD OF 596 UP FROM 590 THE AUCTION ITSELF WENT WELL BUT THERE WAS A LACK OF INTEREST AFTERWARD SAID JAMES KENNEY MANAGER OF GOVERNMENT TRADING AT PRUDENTIAL SECURITIES INC YOU'RE PROBABLY GOING TO HAVE A SIMILAR SITUATION FOR THE FIVEYEAR AUCTION TODAY HE ADDED THE TREASURY IS SCHEDULED TO AUCTION 11 BILLION OF FIVEYEAR NOTES TODAY YESTERDAY'S AUCTION OF 1526 BILLION OF TWOYEAR NOTES WAS THE MAIN EVENT OF A GENERALLY QUIET SESSION AFTER INITIAL CONCERNS THAT BIDDERS WOULD SHY AWAY FROM THE AUCTION ON THE BELIEF THAT THE ISSUE WAS TOO EXPENSIVE THE RESULTS SHOWED REASONABLY GOOD INTEREST DEALERS SAID THE TREASURY DEPARTMENT AWARDED THE NOTES AT A YIELD OF 392 WHICH WAS LOWER THAN MOST DEALERS HAD ANTICIPATED AND A SIGN OF SLIGHTLY STRONGER INTEREST AT THE AUCTION THAN EXPECTED BUT WHILE DEALERS TOOK A SWING AT THE AUCTION INSTITUTIONAL INVESTORS WERE LARGELY UNWILLING TO STEP UP TO THE PLATE YESTERDAY SCARED OFF BY LOW YIELDS REFLECTING A LACK OF BROADBASED INTEREST IN THE AUCTION THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER BIDS OFFERED TO THOSE ACCEPTED WAS 235TO1 UP FROM 214TO1 AT THE FEBRUARY AUCTION BUT BELOW AN AVERAGE OF 269TO1 RATIO IN THE SIX PREVIOUS AUCTIONS INVESTORS STAYED GLUED TO THE SIDELINES EVEN AFTER THE RESULTS SHOWED BETTER BIDDING THAN MOST HAD EXPECTED IN THE END THE LACK OF FOLLOWTHROUGH BUYING LEFT THE WHENISSUED TWOYEAR NOTE YIELDING 394 AT THE END OF TRADING COMPARED WITH 393 JUST BEFORE THE AUCTION RESULTS WERE ANNOUNCED AND 390 LATE TUESDAY WHEN TRADERS REALIZED THE MARKET WAS NOT GOING TO RALLY ON THE AUCTION RESULTS SELLERS EMERGED AS THEY BOOKED PROFITS AND BEGAN TO PREPARE FOR TODAY'S AUCTION OF FIVEYEAR NOTES THE TWOYEAR NOTE AUCTION WAS SLIGHTLY BETTER THAN THE STREET WAS EXPECTING SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC ANALYSTS SAID THE AFTERNOON'S SELLOFF WAS REFLECTIVE OF A MARKET THAT CONTINUES TO BE HELD WITHIN ALREADY ESTABLISHED TRADING RANGES THE BOND REMAINS CONFINED TO A TRADING RANGE OF 675 TO 7 AND WILL CONTINUE TO WAFFLE IN THAT RANGE SAID MS CAMILLI IN THE ABSENCE OF A CHANGE IN THE OUTLOOK FOR FISCAL POLICY AND AMID ECONOMIC DATA THAT CONTINUE TO SUGGEST MODERATE GROWTH YOU'RE LEFT WITH NO PARTICULAR DIRECTION MR JOHNSON SAID BUT WITHIN THE BROAD RANGES THE MARKET HAS BEEN VULNERABLE TO VOLATILE MOVEMENTS AT THE HANDS OF SHORTTERM TRADERS THERE WAS ONLY A MUTED REPONSE TO THE ECONOMIC DATA RELEASED DURING THE SESSION A STRONGERTHANEXPECTED 22 RISE IN FEBRUARY DURABLE GOODS ORDERS PROMPTED AN EARLY SELLOFF BUT THE MARKET QUICKLY REBOUNDED THE MAIN FOCUS TODAY WILL AGAIN BE SUPPLY AS PLAYERS CONTEND WITH THE FIVEYEAR NOTE AUCTION IN LATE WHENISSUED TRADING YESTERDAY THE FIVEYEAR NOTE YIELDED 520 UP FROM 513 ON TUESDAY MANY MARKET PLAYERS YESTERDAY STILL HELD HOPE FOR LONGTERM RATES AS LOW AS 65 IN THE COMING MONTHS AND SOME LIKE MARK GRANT DIRECTOR OF CAPITAL MARKETS AT RODMAN & RENSHAW OF CHICAGO ARE EVEN MORE OPTIMISTIC WHAT DRIVES MARKETS UP ARE LOW INFLATION AND MORE MONEY SAID MR GRANT INFLATION REMAINS LOW AND THE AMOUNT OF MONEY THAT IS COMING INTO THE BOND MARKETS IS INCREDIBLE HE SAID IT'S A MATTER OF SUPPLY AND DEMAND THE LARGE AMOUNT OF DEBT REFINANCING ACTIVITY IN THE MUNICIPAL AND CORPORATE MARKETS MEANS THAT PEOPLE ARE LOSING OLDER HIGHERYIELDING NOTES AND BONDS AND NEED TO REPLACE THEM MR GRANT SAID THAT THE YIELD ON THE 30YEAR TREASURY BOND COULD DIP BELOW 6 OVER THE NEXT YEAR BUT NOT EVERYONE WAS SO OPTIMISTIC YESTERDAY DAVID SHULMAN A PORTFOLIO STRATEGIST AT SALOMON BROTHERS INC SHIFTED HIS ASSET ALLOCATION VIEW YESTERDAY AND RECOMMENDED THAT INVESTORS REDUCE BOND HOLDINGS TO 35 FROM 40 OF THEIR PORTFOLIOS WHILE BOOSTING CASH HOLDINGS TO 15 FROM 10 AND LEAVING STOCK HOLDINGS AT 50 LESS THAN TWO MONTHS AGO MR SHULMAN HAD BOOSTED HIS BONDHOLDING RECOMMENDATION TO 40 FROM 35 THE STRENGTH OF THE ECONOMY IS PROBABLY BEING UNDERSTATED BECAUSE OF THE BAD WEATHER RECENTLY WHICH IS ALSO ADVERSELY AFFECTING CONSUMER CONFIDENCE HE SAID IT LOOKS LIKE WE'VE BOTTOMED OUT ON INFLATION AND IT'S HARD TO BE BULLISH IF THAT IS THE CASE HE SAID INVESTORS FEAR A BOOMING ECONOMY BECAUSE IT COULD LEAD TO HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN LIKE MOST BOND INVESTMENTS HERE ARE THE RESULTS OF YESTERDAY'S AUCTION OF TWOYEAR NOTES BY THE TREASURY ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED MARCH 31 AND MATURE MARCH 31 1995 RISING INTEREST RATES AND THE TREASURY SUPPLY CONCERNS DID LITTLE TO DAMP CORPORATE BOND SALES YESTERDAY AS A WIDE RANGE OF BORROWERS RAISED 25 BILLION ONTARIO HYDRO THE ELECTRIC UTILITY OWNED BY THE CANADIAN PROVINCE OF ONTARIO ACCOUNTED FOR THE BULK OF YESTERDAY'S ISSUANCE AND SOLD 125 BILLION OF NEW NOTES AND DEBENTURES INDUSTRIALS WERE ALSO ACTIVE INCLUDING BLACK & DECKER CORP AND UNION CARBIDE CORP SEASONED HIGHGRADE BONDS SOLD OFF WITH TREASURYS WITH MOST ISSUES ENDING 1/8 POINT TO AS MUCH AS 1/2 POINT LOWER JUNK BONDS CLOSED LITTLE CHANGED AS A NUMBER OF THE MOST ACTIVE JUNK BOND INVESTORS ARE AT FIRST BOSTON CORP'S HIGHYIELD CONFERENCE IN FLORIDA THIS WEEK DEMAND FOR YESTERDAY'S INVESTMENTGRADE DEALS WAS GENERALLY STRONG SAID SYNDICATE OFFICIALS WHO NOTED THAT THE OFFERINGS WERE CONDUCTED WHILE INTEREST RATES WERE RISING WHILE INVESTORS SNAPPED UP 30YEAR BONDS EARLIER THIS YEAR BUYERS NOW PREFER BONDS MATURING IN 20 YEARS OR LESS UNDERWRITERS SAID WITH 10YEAR ISSUES BEING THE MOST POPULAR UNDERWRITERS SENSE THAT INVESTORS HAVE BECOME MORECAUTIOUS BUYERS OF CORPORATE BONDS LATELY SO THEY'RE NOT GOING TO TAKE ANY MAJOR RISKS WITH THE END OF THE QUARTER NEARING A MUTUAL FUND PORTFOLIO MANAGER SAID LARGE INSTITUTIONAL ACCOUNTS SUCH AS INSURANCE COMPANIES OFTEN SELL LARGE QUANTITIES OF BONDS JUST BEFORE FILING DETAILED STATEMENTS OF THEIR HOLDINGS AT THE END OF THE QUARTER THE FIRST PART OF ONTARIO HYDRO'S OFFERING CONSISTING OF 500 MILLION OF FIVEYEAR NOTES WAS PRICED AT PAR TO YIELD 58 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 060 PERCENTAGE POINT ABOVE THE TREASURY'S WHENISSUED FIVEYEAR NOTE THE SECOND PART CONSISTING OF 750 MILLION OF 20YEAR DEBENTURES WAS PRICED WITH A 745 COUPON TO YIELD 7482 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 067 PERCENTAGE POINT ABOVE THE TREASURY'S 30YEAR BOND BOTH PARTS ARE RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP PRICES OF MUNICIPAL BONDS FINISHED NARROWLY MIXED IN THE NEWISSUE SECTOR THE PHILADELPHIA SCHOOL DISTRICT'S 2116 MILLION ISSUE OF GENERAL OBLIGATION REFUNDING BONDS WAS BROUGHT TO THE MARKET BY A MERRILL LYNCH & CO GROUP INCLUDED IN THE TWOPART OFFERING ARE 114 MILLION SERIES A OF 1993 BONDS AND 976 MILLION SERIES B OF 1993 BONDS AT A REPRICING MOST YIELDS WERE RAISED 005 TO 010 PERCENTAGE POINT TO ATTRACT BUYERS BUT A FEW YIELDS WERE LOWERED 005 PERCENTAGE POINT DUE TO SUBSTANTIAL DEMAND FOLLOWING THE REPRICING SERIES A YIELDS RANGE FROM 375 IN 1995 TO 545 IN 2005 AND SERIES B YIELDS RANGE FROM 300 IN 1994 TO 550 IN 2006 IN SECONDARY DEALINGS PRICES GENERALLY ENDED 1/4 LOWER TO 1/4 HIGHER THE GEORGIA MUNICIPAL ELECTRIC AUTHORITY'S 550 BONDS OF 2020 ENDED 1/4 LOWER AT 95 1/4 TO YIELD 583 SEPARATELY TRADERS SAY THERE WAS NO BIG RESPONSE TO A REPORT BY MOODY'S INVESTORS SERVICE INC ABOUT THE CONDITION OF NEW YORK STATE'S 15 LARGEST CITIES MOODY'S SAID OVER THE PAST SEVERAL DECADES THE CREDIT QUALITY OF NEW YORK'S LARGEST CITIES HAS GENERALLY WEAKENED THIS DECLINE IS PARTLY A REFLECTION OF THE CHANGING ECONOMIC ROLE CITIES HAVE PLAYED AS GROWTH SHIFTED TO THE SUBURBS AND OTHER REGIONS OF THE COUNTRY HOWEVER IT CAN BE EXPECTED THAT INDUSTRIAL DIVERSIFICATION AND FOREIGN IMMIGRATION WILL PROVIDE ECONOMIC BALANCE TO SOME OF THESE CITIES AS THEY CONTINUE TO UNDERGO STRUCTURAL CHANGE PRICES OF MORTGAGE SECURITIES ENDED LOWER IN THE PRIMARY MARKET ABOUT 15 BILLION IN NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE ANNOUNCED AS WELL AS A 2563 MILLION FLEET FINANCE INC OFFERING BACKED BY HOMEEQUITY LOANS FLEET FINANCE IS A UNIT OF FLEET FINANCIAL GROUP INC SOME INVESTORS WERE SKITTISH ABOUT BUYING THE FLEET BONDS BECAUSE THE COLLATERAL INCLUDED LOANS TO FACILIATE OR LOANS FLEET ORIGINATED TO ASSIST BORROWERS WHO COULDN'T MAKE FULL DOWN PAYMENTS ON THEIR MORTGAGES RATING AGENCIES HAD SIMILIAR CONCERNS TO RATE A 1992 MILLION SENIOR CLASS TRIPLEA STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC REQUIRED THE DEAL INCLUDE A THICK LAYER OF CREDIT SUPPORT A 57 MILLION CLASS OF SUBORDINATE CERTIFICATES AND A 13 RESERVE ACCOUNT MORE THAN 35 OF THE TOTAL OFFERING SHIELD SENIOR CERTIFICATE INVESTORS FROM LOAN DEFAULTS AND LOSSES TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9303250089 930325 CORPORATE FOCUS DRUG LEADER MERCK FACES THREATS TO ITS MIDAS TOUCH FIRM'S FUTURE UNCERTAIN AS INDUSTRY FACES SEA CHANGE AND PROFITS SLOW BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WHEN P ROY VAGELOS RETIRES AS MERCK & CO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER NEXT YEAR HE WILL BE TURNING OVER TO HIS SUCCESSOR A COMPANY WITH SLOWING PROFIT GROWTH AND AN UNCERTAIN FUTURE MERCK SURPRISED WALL STREET TUESDAY BY SAYING 1993 EARNINGS GROWTH WILL BE MODERATING BECAUSE OF A TURBULENT MARKET AND ECONOMIC AND POLITICAL CONDITIONS MERCK LIKE THE REST OF THE DRUG INDUSTRY IS WRESTLING TO ADAPT TO CHANGES IN THE PHARMACEUTICAL BUSINESS ENVIRONMENT UNTIL RECENTLY MERCK WAS VIEWED AS THE INDUSTRY'S BEST MANAGED AND ONE OF THE BEST POSITIONED TO WEATHER THE EXPECTED STORMY PERIOD AHEAD BECAUSE OF ITS PREMIER PRODUCTS AND RESEARCH PIPELINE SOME DRUG INDUSTRY ANALYSTS NOW WORRY THAT MERCK'S DECLINING PROFIT GROWTH MAY MEAN THE COMPANY ISN'T AS WELL EQUIPPED TO SURMOUNT THE CHALLENGES OF THE CHANGING CLIMATE AS MANY HAD BELIEVED ON CLOSER INSPECTION THESE ANALYSTS SEE A PRODUCT LINE AT MERCK THAT IS UNDER SIEGE FROM COMPETITION AND A RESEARCH PIPELINE BEREFT OF THE BLOCKBUSTER PRODUCTS NECESSARY TO SUSTAIN THE DOUBLEDIGIT SALES AND EARNINGS GROWTH EXPECTED OF IT THE FUTURE IS GOING TO BE CHALLENGING FOR MERCK SAYS CRAIG P BASKIN AN ANALYST AT VECTOR SECURITIES INTERNATIONAL BESIDES THE EXTERNAL PRESSURES ON THE COMPANY THE FAILURE OF PROSCAR MERCK'S PROSTATEGLAND DRUG TO MEET EXPECTATIONS CREATES A HOLE IN THE NEWPRODUCT PIPELINE MR BASKIN ASSERTS A SERIES OF BIG PATENT EXPIRATIONS LOOM LATER IN THE DECADE AND MERCK'S PIPELINE IS UNPROVEN HE ADDS MOREOVER THE WHITE HOUSE'S EXPECTED HEALTHCARE REFORMS WHICH MAY INCLUDE DRUGPRICING RESTRICTIONS COULD EXACERBATE THESE PROBLEMS BY LIMITING THE COMPANY'S ABILITY TO RAISE PRICES AN INCREASING NUMBER OF ANALYSTS BELIEVE MERCK FACES A ROCKY PERIOD OF SHARPLY LOWER SALES AND EARNINGS GROWTH OVER THE NEXT SEVERAL YEARS THE COMPANY'S PROBLEMS ARE WORRISOME BECAUSE IT'S CONSIDERED TO BE THE BELLWETHER OF THE INDUSTRY AS MERCK STRUGGLES TO MEET ITS GOALS ANALYSTS WONDER WHETHER SUCH OTHER PHARMACEUTICAL COMPANIES AS PFIZER INC BRISTOLMYERS SQUIBB CO AND GLAXO HOLDINGS PLC WILL BE ABLE TO DELIVER ACCEPTABLE FINANCIAL PERFORMANCE SOME ANALYSTS REMAIN SANGUINE ABOUT MERCK'S PROSPECTS ROBERT C HODGSON AN ANALYST AT COWEN & CO NOTES THAT MERCK'S PREDICTED EARNINGS GROWTH RATE OF 13 TO 14 DURING THE NEXT FEW YEARS WILL OUTPACE THE OVERALL MARKET'S ESTIMATED 9 YEARLY GROWTH INVESTOR CONCERN OVER MERCK'S PROSPECTS HAS BEEN BUILDING IN THE PAST YEAR THE COMPANY'S SHARE PRICE HAS LOST 40 OF ITS VALUE SINCE EARLY 1992 REPRESENTING A MORE THAN 20 BILLION DECLINE IN MERCK'S MARKET VALUE YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE STOCK CLOSED AT 3475 A SHARE OFF 225 AS MORE THAN 13 MILLION SHARES CHANGED HANDS THAT DECLINE CONTRASTS WITH THE STRING OF AWARDS MERCK HAS RECEIVED SINCE THE MID1980S INCLUDING BEING NAMED THIS YEAR THE MOST ADMIRED US CORPORATION FOR THE SEVENTH YEAR IN A ROW IN A FORTUNE MAGAZINE SURVEY EVEN MERCK SAYS ITS FUTURE WILL BE DIFFERENT COMPETITION AMONG DRUG COMPANIES IS THREATENING MERCK'S CARDIOVASCULAR DRUGS WHICH ACCOUNT FOR ALMOST HALF OF THE COMPANY'S SALES ITS TWO POWERHOUSE PRODUCTS THE HEART DRUG VASOTEC AND ITS CHOLESTEROLLOWERING MEVACOR HAVE BEEN LOSING GROUND TO NEW SIMILAR PRODUCTS BEING MARKETED BY COMPETITORS WHO IN SOME CASES HAVE GRABBED MARKET SHARE BY USING PRICE DISCOUNTS IN THE PAST MERCK HAS BEEN A ONEPRICE HOUSE RESISTING PRESSURE FROM SUCH BIG INSTITUTIONAL BUYERS AS LARGE INSURANCE GROUPS TO LOWER PRICES INSTEAD THE COMPANY SOLD ITS MEDICINES BY USING THE MORE ROUTINE APPROACH OF TOUTING THE THERAPEUTIC ADVANTAGES OF ITS PRODUCTS BUT WITH LOWERPRICED PRODUCTS RAPIDLY GAINING MARKET SHARE MERCK HAS BEGUN DISCOUNTING TOO WE WILL COMPETE WHEN OTHER PRODUCTS COME IN AT A LOWER PRICE ABSOLUTELY VOWS DR VAGELOS THAT BECAME EVIDENT THIS MONTH WHEN MERCK TEMPORARILY CUT THE PRICE ON ITS CHOLESTEROLLOWERING DRUGS MEVACOR AND ZOCOR IN AN EFFORT TO PULL BUSINESS AWAY FROM BRISTOLMYERS'S DRUG PRAVACHOL BRISTOLMYERS INTRODUCED PRAVACHOL IN LATE 1991 AT UNDER MEVACOR'S PRICE SOME ANALYSTS HAVE EXPECTED A SLOWING OF SALES GROWTH OF SEVERAL WIDELY USED BUT MATURING MERCK PRODUCTS BUT MERCK THOUGHT ITS NEWEST DRUG PROSCAR A TREATMENT FOR ENLARGED PROSTATE GLANDS WOULD FUEL THE COMPANY'S REVENUE GROWTH THROUGH THE END OF THE DECADE EVEN DR VAGELOS HAS PREDICTED IT WOULD BECOME A BILLIONDOLLAR BLOCKBUSTER BUT PROSCAR IS OFF TO A SLOW START THE COMPANY BLAMES UROLOGISTS SAYING THE DOCTORS AREN'T USING THE DRUG BECAUSE IT WILL REDUCE THEIR LUCRATIVE SURGICAL INCOME AFTER PROSCAR THERE ISN'T MUCH IN THE RESEARCH PIPELINE THAT IS EXPECTED TO GENERATE LARGE ENOUGH SALES TO KEEP MERCK'S PROFITS GROWING AT MORE THAN 15 A YEAR SOME ANALYSTS NOW ASSERT MERCK HASN'T TALKED ABOUT MANY DRUGS IN ADVANCED TESTING SURPRISING TO MANY BECAUSE THE COMPANY SPENDS MORE THAN 1 BILLION A YEAR FOR RESEARCH AND DEVELOPMENT AMONG THOSE IT HAS TALKED ABOUT FOSAMAX AN OSTEOPOROSIS TREATMENT EXPECTED TO BE MARKETED IN 1996 WILL GARNER HUGE SALES DR VAGELOS SAYS BUT OTHER COMPANIES MOST NOTABLY JOHNSON & JOHNSON ARE ALSO DEVELOPING OSTEOPOROSIS DRUGS AND ANALYSTS SAY BECAUSE THE DRUG IS LIKELY TO COST CONSUMERS ABOUT 150 TO 2 A DAY IT MAY BE A TOUGH SELL AGAINST THE CURRENT TREATMENT AMERICAN HOME PRODUCTS CORP'S PREMARIN WHICH CURRENTLY SELLS FOR 36 CENTS A DAY THE UNCERTAINTY OF MERCK'S PENDING PRODUCTS IS PARTICULARLY WORRISOME TO SOME ANALYSTS BECAUSE US PATENTS ON SOME OF MERCK'S BIGGEST PRODUCTS ARE TO EXPIRE BY THE END OF THE DECADE THEN GENERIC DRUG COMPETITION WILL SHARPLY REDUCE SALES EVEN BEFORE THEN THOUGH BRISTOLMYERS' CAPOTEN A DRUG THAT COMPETES AGAINST MERCK'S VASOTEC WILL LOSE US PATENT PROTECTION IN 1995 WHICH MAY RESULT IN SHARPLYDISCOUNTED COMPETITION ANALYSTS SAY 9303250088 930325 MARKETING & MEDIA ADVERTISING NETWORKS PARADE FOR ADVERTISERS A LINEUP OF WORKS IN PROGRESS' BY KEVIN GOLDMAN MADISON AVENUE TREKKED TO HOLLYWOOD THIS WEEK TO HEAR THE TELEVISION NETWORKS' VERSION OF SPRING TRAINING THE DEVELOPMENT SEASON EXECUTIVES AT THE FOUR MAJOR BROADCAST NETWORKS MET WITH ADVERTISING EXECUTIVES TO DETAIL THE SERIES THEY ARE CONSIDERING FOR NEXT FALL'S PRIMETIME SEASON MANY OF THE SHOWS COMEDIES IN PARTICULAR DEAL WITH LIFE'S THREED'S DIVORCED DECEASED OR DUMPED A DISPROPORTIONATE NUMBER OF PROPOSED SERIES HAVE CHARACTERS WHO ARE EITHER WIDOWED OR SPLITSVILLE FROM A SPOUSE OR SIGNIFICANT OTHER FOR INSTANCE NBC ITS RATINGS IN A SEEMINGLY ENDLESS FREE FALL HAS AT LEAST FIVE SERIES FEATURING SUCH CHARACTERS INCLUDING VALERIE BERTINELLI IN CAFE AMERICAIN THINK OF CASABLANCA WITH A LAUGH TRACK THERE ARE ALSO SHOWS WITH TERI GARR PLAYING A DIVORCED INTERNAL REVENUE SERVICE AGENT AND THE STANDUP COMIC JOHN MENDOZA PORTRAYING A DIVORCED DADDY CBS CHIMES IN WITH THE NANNY ABOUT A WIDOWED BROADWAY PRODUCER AND THE BUILDING ABOUT A STRUGGLING YOUNG ACTRESS WHO GETS DUMPED BY HER FIANCE ABC HAS TV VETERAN JOANNA KERNS IN THE LONG GAME PLAYING A DIVORCED GOLF PRO WHOSE CAREER HAS HIT THE SKIDS ANOTHER OF THAT NETWORK'S POSSIBILITIES IS PHENOM FROM PRODUCER JAMES L BROOKS ABOUT A SINGLE MOTHER WHOSE TEENAGE DAUGHTER IS A TENNIS PRO THE OPERATIVE WORD AT EVERY NETWORK IS SMART' SAYS JON MANDEL SENIOR VICE PRESIDENT NATIONAL BROADCAST AT GREY ADVERTISING THE NETWORKS CAN NO LONGER PANDER TO THE AUDIENCE WHILE EMPHASIZING THAT THE UPCOMING TELEVISION SEASON IS IN AN EMBRYONIC STAGE ADVERTISING EXECUTIVES APPEARED LESS THAN OVERWHELMED BY THE NEW OFFERINGS AND COME SEPTEMBER WHEN THE NEW SEASON BEGINS THERE WILL BE MANY NEW SHOWS CONSIDERING THE AMOUNT OF HOURS THE NETWORKS NEED TO FIX BY VARIOUS COUNTS CBS ENJOYING A STRONG FIRSTPLACE SHOWING IN HOUSEHOLD RATINGS NEEDS ABOUT FOUR NEW HOURS OF SHOWS CAPITAL CITIES/ABC'S NETWORK WILL REPLACE ABOUT SIX HOURS AND GENERAL ELECTRIC'S NBC UNIT WILL OVERHAUL BETWEEN SIX AND EIGHT HOURS EACH NETWORK IS PURSUING A DIFFERENT PROGRAMMING STRATEGY AD EXECUTIVES SAY CBS FOR EXAMPLE IS GOING AFTER A MASS AUDIENCE AND NOT SIMPLY TARGETING THE 18TO49YEAROLD DEMOGRAPHIC TRADITIONALLY THE MOST SOUGHTAFTER AUDIENCE BY ADVERTISERS IN CONTRAST ABC IS RUTHLESSLY GOING AFTER THE 18TO49YEAROLDS SAYS MR MANDEL AND NEWS CORP'S FOX BROADCASTING CO NETWORK IS TRYING TO EXPAND ITS YOUNG AUDIENCE BASE IT HAS AN EXHAUSTIVE DEVELOPMENT SLATE OF 20 COMEDIES 11 DRAMAS WITH A HEAVY DOSE OF POLICE AND ACTION SHOWS AND FIVE REALITYBASED SHOWS FOX'S BIGGEST PROBLEM IS TO REACH FOR AN OLDER AUDIENCE WHILE NOT ALIENATING ITS BRAND IDENTITY SAYS BETSY FRANK SENIOR VICE PRESIDENT AND DIRECTOR OF TELEVISION INFORMATION AT SAATCHI & SAATCHI ADVERTISING OBVIOUSLY EACH NETWORK ORDERS MANY MORE SHOWS THAN IT WILL EVER USE NBC FOR EXAMPLE HAS 21 SHOWS IN DEVELOPMENT INCLUDING 11 COMEDIES AND CBS HAS 23 SERIES IN DEVELOPMENT INCLUDING A HEFTY 16 COMEDIES COMEDIES ARE A QUICK SELL TO ADVERTISERS THEY BUILD AUDIENCES QUICKLY FASTER THAN DRAMAS SAYS JOEL M SEGAL AN EXECUTIVE VICE PRESIDENT OF INTERPUBLIC GROUP'S MCCANNERICKSON AND THERE ARE AT LEAST TWO DRAMAS BOTH UNDER CONSIDERATION BY ABC THAT ARE GIVING ADVERTISING EXECUTIVES PAUSE NYPD BLUE IN WHICH PRODUCER/CREATOR STEVEN BOCHCO SAYS HE PLANS TO USE STRONG LANGUAGE AND POSSIBLY RISQUE SHOTS ABC TOLD SOME AD EXECUTIVES THE SHOW WILL BE A PG13 THE OTHER SHOW IS FROM THE CREATORS OF THIRTYSOMETHING AND IS TITLED MY SOCALLED LIFE TOLD FROM THE POINTOFVIEW OF A 13YEAROLD BOTH WILL BE TOUGH SELLS TO ADVERTISERS SAYS MS FRANK BOTH WILL DEAL WITH SUBJECT MATTER THAT SOME ADVERTISERS MAY NOT FEEL IS THE RIGHT ENVIRONMENT FOR THEIR PRODUCT AT THE PRESENTATIONS WHICH BEGAN TUESDAY AND CONCLUDED YESTERDAY EACH NETWORK TRUMPETED ITS PET PROJECTS CBS TALKED UP AMONG OTHERS COMEDIES DAVE'S WORLD ABOUT NEWSPAPER COLUMNIST DAVE BARRY AND IT HAD TO BE YOU STARRING FAYE DUNAWAY AND ROBERT URICH AS A MISMATCHED COUPLE SHE A HIGHBROW BOSTON PUBLISHER HE A CARPENTER CBS'S HIGHPROFILE DRAMAS INCLUDE HATS OF THE WEST STARRING BEAU BRIDGES AND HIS FATHER LLOYD AND SOUTH OF SUNSET WITH SINGER GLENN FREY PLAYING A PRIVATE DETECTIVE ABC HAS A NOVEL TWIST FOR SATURDAYS THE MOST DIFFICULT NIGHT FOR TV PROGRAMMERS IT MAY EXPERIMENT WITH A TWOHOUR VARIETY SHOW FROM TIME WARNER'S HBO INDEPENDENT PRODUCTIONS CALLED IT'S A BIG COUNTRY ABC IS PREPARED TO KNOCK IT DOWN TO AN HOUR IN CASE IT'S A BIG BORE ABC IS ALSO CHATTING UP A COMEDY SERIES WITH EXBOXER GEORGE FOREMAN STARRING AS WELL AN EXBOXER WHO BECOMES A JUNIOR HIGH SCHOOL COUNSELOR NBC IS SO CONFIDENT ABOUT SEAQUEST DSV ITS SCIFI UNDERWATER PROJECT FROM PRODUCER/DIRECTOR STEVEN SPIELBERG STARRING ROY SCHEIDER THAT IT UNCHARACTERISTICALLY ORDERED A FULL YEAR'S WORTH OF EPISODES TOTALING 22 THE NETWORK IS ALSO BRINGING BACK ITS TALKING CAR NO NOT FROM MY MOTHER THE CAR ITS 1965 ZANY SERIES INSTEAD IT IS RETOOLING KNIGHTRIDER 2000 AN UPDATED VERSION OF A 1982 SERIES THIS TIME IT IS SET IN THE FUTURE AND THE CAR IS A WOMAN EACH NETWORK HAS HOLES ON VIRTUALLY EACH NIGHT TO FILL BUT NBC CLEARLY HAS THE MOST PROBLEMS AND CBS HAS THE LEAST HEY SAYS MR MANDEL FROM GREY THE PILOTS MAY SOUND SILLY BUT THEN THE NETWORKS MAKE THEM AND THERE'S MAGIC WHO KNOWS WE'LL SEE IN A FEW MONTHS GENERAL MOTORS CORP IS MAKING AN APPEARANCE AT THE OSCARS WITH A TEASER CAMPAIGN FOR THE NEW CHEVROLET CAMARO THE SPOT FROM INTERPUBLIC GROUP'S LINTASCAMPBELL EWALD BREAKS ON THE ABC NETWORK'S ACADEMY AWARDS BROADCAST MONDAY IT DOESN'T SHOW THE NEW CAMARO INSTEAD A ROCKANDROLL FAN BLASTS AWAY ON A RED GUITAR WITH THE TAG COMING SOON A NEW CAR FROM THE COUNTRY THAT INVENTED ROCK AND ROLL NATIONAL ADVERTISING FOR THE CAR DOESN'T START AIRING UNTIL MAY IT IS SLATED TO BROADCAST ON ANOTHER MAJOR MOMENT IN NETWORK BROADCASTING THE FINAL EPISODE OF THE SITCOM CHEERS THAT SPOT OPENS SHOWING WHAT LIFE WOULD BE LIKE WITHOUT ROCKANDROLL THEN THE NEW CAMARO MAKES ITS GRAND ENTRANCE TO THE SOUND OF ROCK GUITARIST JIMI HENDRIX WHO'S NEWS LANDOR & ASSOCIATES THE SAN FRANCISCO LOGO AND PACKAGE DESIGN UNIT OF YOUNG & RUBICAM HIRED COURTNEY D REESER AS EXECUTIVE CREATIVE DIRECTOR REPORTING TO ED VICK LANDOR CHIEF EXECUTIVE MR REESER 40 YEARS OLD PREVIOUSLY RAN HIS OWN DESIGN SHOP 9303250087 930325 LAW HIGH COURT RULING IN CINCINNATI CASE AFFIRMS SHIELD FOR COMMERCIAL SPEECH BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT REINFORCED THE CONSTITUTIONAL SHIELD PROTECTING COMMERCIAL SPEECH AGAINST GOVERNMENT REGULATION THE JUSTICES RULED 63 THAT THE CITY OF CINCINNATI VIOLATED THE FIRST AMENDMENT'S GUARANTEE OF FREE SPEECH WHEN IT SAID COMMERCIAL CIRCULARS COULDN'T BE DISTRIBUTED IN CURBSIDE RACKS WHILE CONVENTIONAL NEWSPAPERS COULD THE CASE HAD BEEN CLOSELY WATCHED BY BUSINESS ADVOCATES BECAUSE IT OFFERED THE HIGH COURT AN OPPORTUNITY TO CLARIFY WHAT LEVEL OF PROTECTION IS AFFORDED TO SOCALLED COMMERCIAL SPEECH WHICH INCLUDES ADVERTISING BUT THE MAJORITY WENT OUT OF ITS WAY TO EMPHASIZE THAT THE RULING APPLIED ONLY TO THE PARTICULAR CIRCUMSTANCES IN CINCINNATI AND SHOULDN'T BE APPLIED TOO BROADLY THE CASE AROSE FROM THE CITY'S DECISION IN 1990 TO LIMIT THE NUMBER OF NEWS RACKS ON ITS SIDEWALKS BECAUSE OF CONCERNS THAT THEY CREATED SAFETY HAZARDS AND WERE UNATTRACTIVE THE CITY ORDERED PUBLISHERS OF GIVEAWAY MAGAZINES ON REAL ESTATE AND ADULT EDUCATIONAL OPPORTUNITIES TO REMOVE A TOTAL OF 62 RACKS BUT IT DIDN'T LIMIT ORDINARY NEWSPAPERS SIMILARLY THERE WERE BETWEEN 1500 AND 2000 RACKS IN THE CITY THE MAGAZINE PUBLISHERS SUED COMPLAINING THAT THEY WERE UNLAWFULLY SINGLED OUT TWO LOWER COURTS AGREED WITH THE PUBLISHERS AND THE SUPREME COURT AFFIRMED THOSE RULINGS IN AN OPINION WRITTEN BY JUSTICE JOHN PAUL STEVENS THE MAJORITY REITERATED THAT COMMERCIAL SPEECH GENERALLY DESERVES LESS CONSTITUTIONAL PROTECTION THAN EXPRESSION NOT MOTIVATED BY PROFIT BUT CINCINNATI FAILED TO JUSTIFY ITS DISTINCTION BETWEEN COMMERCIAL CIRCULARS AND CONVENTIONAL NEWSPAPERS JUSTICE STEVENS WROTE THE GIVEAWAY MAGAZINE RACKS AREN'T MORE HARMFUL AND HAVE ONLY A MINIMAL IMPACT ON THE OVERALL NUMBER OF NEWSRACKS ON THE CITY'S SIDEWALKS HE ADDED JUSTICE STEVENS OBSERVED THAT IT ISN'T EASY TO DISTINGUISH BETWEEN THE GIVEAWAY CIRCULARS WHICH MAY CONTAIN VALUABLE INFORMATION AND ORDINARY NEWSPAPERS WHICH INCLUDE ADVERTISING AND ARE DESIGNED TO EARN MONEY FOR THEIR PUBLISHERS BUT HAVING RAISED THE PROBLEM HE DECLINED TO ATTEMPT TO RESOLVE IT HE SAID THAT CINCINNATI'S NEWS RACK POLICY WAS SO CLUMSY THAT THE HIGH COURT DIDN'T HAVE TO REEXAMINE ITS JURISPRUDENCE IN THE AREA TO STRIKE DOWN THE CITY'S POLICY STILL DESPITE ITS NARROWNESS THE MAJORITY OPINION SERVES WARNING THAT DISTINCTIONS BETWEEN COMMERCIAL AND NONCOMMERCIAL SPEECH MUST BE DONE CAREFULLY SAID ROBERT O'NEIL A FIRST AMENDMENT SCHOLAR AT THE UNIVERSITY OF VIRGINIA IN SOME RECENT DECISIONS THE HIGH COURT HAD SEEMED TO DRIFT TOWARD GIVING COMMERCIAL SPEECH LESS PROTECTION HE ADDED BUT YESTERDAY'S RULING REASSERTED THE VALUE OF SUCH PROFITORIENTED COMMUNICATION MOREOVER THE STEVENS OPINION CASTS DOUBT ON OTHER FORMS OF GOVERNMENT FAVORITISM SUCH AS EXEMPTIONS FROM SOME STATE TAXES AFFORDED NEWS AND INFORMATION MEDIA SAID TIMOTHY DYK A WASHINGTON LAWYER WHO HAS REPRESENTED MEDIA CLIENTS THE CASE RAISES A LOT OF IMPORTANT QUESTIONS ABOUT FAVORED TREATMENT FOR THE MEDIA HE ADDED BUT IT DOESN'T PROVIDE THE ANSWERS THE HIGH COURT IS GOING TO HAVE TO COME BACK TO IT AGAIN HE PREDICTED MAJOR NEWSPAPER COMPANIES INCLUDING DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL HAD URGED THE JUSTICES IN A SEPARATE BRIEF TO RULE THAT PURELY COMMERCIAL PUBLICATIONS SHOULD GET FIRST AMENDMENT PROTECTION TO USE NEWS RACKS BUT NOT AS MUCH PROTECTION AS NEWSPAPERS CHIEF JUSTICE WILLIAM REHNQUIST FILED A DISSENT WHICH WAS JOINED BY JUSTICES BYRON WHITE AND CLARENCE THOMAS THE DISSENTERS SAID CINCINNATI'S AIM OF DIMINISHING SIDEWALK CLUTTER WAS LEGITIMATE AND THAT THERE WAS NOTHING WRONG IN MOVING TOWARD THAT GOAL BY ELIMINATING ONE CATEGORY OF NEWS RACKS CINCINNATI VS DISCOVERY NETWORK INC IN A SEPARATE CASE THE SUPREME COURT HANDED THE INTERNAL REVENUE SERVICE A VICTORY IN ITS CONTINUING STRUGGLE TO COLLECT UNPAID TAXES FROM PEOPLE WHO ALSO OWE MONEY TO BANKS AND OTHER CREDITORS THE JUSTICES RULED 63 THAT THE FEDERAL GOVERNMENT'S CLAIM TO PROPERTY RESULTING FROM A FAILURE TO PAY TAXES GENERALLY SHOULD BE GIVEN PRIORITY OVER CREDITORS' COMPETING CLAIMS AGAINST THE PROPERTY IN MANY CIRCUMSTANCES IRS CLAIMS TO A TAXPAYER'S PROPERTY AUTOMATICALLY ARE GIVEN PRIORITY OVER COMPETING CLAIMS BY CREDITORS SUCH CLAIMS AGAINST PROPERTY ARE KNOWN AS LIENS BUT SOME TYPES OF LIENS INCLUDING THOSE IMPOSED BY COURT JUDGMENTS ARE GIVEN PRIORITY OVER FEDERAL TAX LIENS IF THEY ARE FORMALLY FILED BEFORE THE IRS FILES ITS CLAIMS AT ISSUE IN THE CASE THE JUSTICES DECIDED YESTERDAY WAS WHICH LIEN HOLDER GETS PRIORITY IN THE LIQUIDATION OF PROPERTY THAT A DEBTOR ACQUIRES AFTER BOTH TAX AND COURTJUDGMENT LIENS HAVE BEEN FILED A FEDERAL APPEALS COURT IN DENVER RULED IN THE CASE THAT THE PROCEEDS OF THE LIQUIDATION OF SUCH AFTERACQUIRED PROPERTY SHOULD BE MADE AVAILABLE FIRST TO THE LIEN HOLDER THAT FILED ITS CLAIM FIRST THE FEDERAL GOVERNMENT APPEALED THIS DECISION CONTENDING THAT THE PROCEEDS FROM LIQUIDATION OF AFTERACQUIRED PROPERTY SHOULD GO TO THE GOVERNMENT EVEN IF IT HAS FILED ITS LIEN AFTER A COMPETING COURTJUDGMENT LIEN HAS BEEN FILED THE SUPREME COURT REVERSED THE DENVER APPEALS COURT AND RULED FOR THE GOVERNMENT THE HIGH COURT DECISION MEANS THAT CREDITORS CAN'T NECESSARILY DEPEND ON GETTING THEIR CLAIMS SATISFIED IF THEY OBTAIN A COURTJUDGMENT LIEN BEFORE A FEDERAL TAX LIEN IS FILED 9303250086 930325 YOUR MONEY MATTERS CALIFORNIA TO BACK REBATES TO LIFEINSURANCE BUYERS BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL A REGULATORY ACTION AGAINST SOME MAJOR INSURANCE COMPANIES EXPECTED TO BE ANNOUNCED TODAY IN CALIFORNIA COULD BE GOOD NEWS FOR SOME LIFEINSURANCE BUYERS LOOKING TO SAVE MONEY THE ACTION WHICH A CALIFORNIA DEPARTMENT OF INSURANCE SPOKESWOMAN SAYS INVOLVES FIVE INSURANCE COMPANIES THAT SHE DECLINED TO NAME IS EXPECTED TO GIVE A BOOST TO REBATING A CONTROVERSIAL PRACTICE IN WHICH AGENTS REBATE PART OF THEIR SALES COMMISSIONS TO POLICY BUYERS INSURANCE BUYERS CAN LEGALLY RECEIVE SUCH REBATES ONLY WHEN INSURANCE IS PURCHASED IN CALIFORNIA OR FLORIDA MOST AGENTS AND INSURANCE COMPANIES OPPOSE THE PRACTICE EVEN WHERE IT'S LEGAL THE CALIFORNIA INSURANCE DEPARTMENT WILL ACCUSE THE INSURERS OF ILLEGALLY ACTING TO PROHIBIT PREVENT AND/OR PENALIZE THE REBATING OF COMMISSIONS BY A LICENSED AGENT THE DEPARTMENT SPOKESWOMAN SAID THE REGULATORY ACTION FOLLOWS A LENGTHY INVESTIGATION OF COMPLAINTS BY SAN DIEGO AGENT MARK K WHITE THAT SEVERAL INSURERS WERE REFUSING TO DO BUSINESS WITH HIM BECAUSE OF HIS REBATING PRACTICES THE EXPECTED ACTION FOLLOWS AN ILLINOIS COURT DECISION LAST MONTH THAT GAVE SOME LARGE INSURERS A GREEN LIGHT TO REFUSE TO DO BUSINESS WITH PARTICULAR AGENTS BECAUSE THOSE AGENTS REBATE THE COURT DISMISSED AS GROUNDLESS A LAWSUIT IN WHICH REBATER RICK K NELSON SOUGHT TO FORCE THREE INSURERS PRUDENTIAL INSURANCE CO OF AMERICA METROPOLITAN LIFE INSURANCE CO AND TRANSAMERICA OCCIDENTAL LIFE INSURANCE CO TO REINSTATE HIS AUTHORITY TO SELL THEIR PRODUCTS MR NELSON WHO SAYS HE ISN'T APPEALING THE DECISION HAD ARGUED THAT THE INSURERS BREACHED THEIR CONTRACTS WITH HIM BY TERMINATING HIS SELLING AUTHORITY MR NELSON SAYS HE NOW FEARS OTHER INSURERS WILL TERMINATE HIS ABILITY TO SELL THEIR POLICIES FOR INSURANCE BUYERS THE REBATE DEBATE HIGHLIGHTS THE FACT THAT LIFEINSURANCE COMMISSIONS ARE SUBSTANTIAL TYPICALLY AT LEAST HALF OF A POLICY'S FIRSTYEAR PREMIUM AND AROUND 5 A YEAR FOR THE NEXT SEVERAL YEARS THE SERVICES OF A GOOD AGENT CAN BE WELL WORTH THAT BUILTIN COMMISSION BUT SOME INSURANCE BUYERS MAY ALSO WANT TO CONSIDER SUCH COSTSAVINGS ALTERNATIVES AS REBATES POLICIES WITH LOWER OR NO COMMISSIONS AT ALL AND BLENDED POLICIES THAT COMBINE ORDINARY POLICIES WITH LOWERCOMMISSION PRODUCTS THE FLASHIEST OPTION REBATING IS AVAILABLE ONLY TO PEOPLE WHO EITHER LIVE IN CALIFORNIA OR FLORIDA OR ARE WILLING TO TRAVEL TO ONE OF THOSE STATES TO MAKE A BIG INSURANCE PURCHASE PREMIUMS AND THUS REBATES ARE GREATEST ON CASHVALUE POLICIES THAT COMBINE A DEATH BENEFIT AND A TAXADVANTAGED SAVINGS COMPONENT IF THE AGENT REBATES SAY HALF OF THE FIRSTYEAR COMMISSION THAT MIGHT BE 2500 OR MORE ON A LARGE POLICY WITH A 10000 PREMIUM BUT BUYERS NATIONWIDE MAY GET GREATER BENEFITS BY SEEKING OUT POLICIES THAT HAVE NO COMMISSIONS OR LOWER COMMISSIONS TO BEGIN WITH FEEPAID INSURANCE SPECIALISTS SAY BUYING A NOCOMMISSION POLICY IS EITHER GOING TO REDUCE YOUR PREMIUMS OR INCREASE THE POLICY VALUE SAYS PETER KATT A FEEONLY INSURANCE ADVISER IN WEST BLOOMFIELD MICH TWO WELLREGARDED COMPANIES THAT SELL NOCOMMISSION POLICIES DIRECTLY TO CONSUMERS ARE AMERITAS LIFE INSURANCE CORP LINCOLN NEB AND USAA LIFE INSURANCE CO IN SAN ANTONIO ANOTHER MORE COMPLICATED OPTION IS TO ASK AN AGENT TO BLEND ORDINARY COMMISSIONED INSURANCE WITH SOME LOWERCOMMISSION INSURANCE FROM THE SAME INSURER MR NELSON WHO IS BASED IN NORTHBROOK ILL SAYS HE TYPICALLY DESIGNS BLENDED POLICIES HE THEN REBATES 40 TO 70 OF THE REMAINING FIRSTYEAR COMMISSION TO PEOPLE WHO EITHER LIVE IN CALIFORNIA OR FLORIDA OR TRAVEL TO THOSE STATES TO SIGN THEIR INSURANCE APPLICATIONS WHILE REBATING ISN'T THE ONLY COSTSAVING OPTION FOR LIFEINSURANCE BUYERS IT IS THE ONE THAT HAS THE INSURANCE INDUSTRY UP IN ARMS THE PRACTICE WAS PROHIBITED FOR DECADES UNTIL A FLORIDA ANTIREBATING STATUTE WAS OVERTURNED BY THE COURTS IN 1986 AND A SIMILAR CALIFORNIA LAW WAS REPEALED IN 1988 INSURANCEINDUSTRY GROUPS WARN OF A RESURGENCE OF THE PROBLEMS THAT LED REBATING TO BE BARRED LONG AGO INCLUDING EXCESSIVE COMPETITION THAT WOULD HURT INSURERS AGENTS AND ULTIMATELY CONSUMERS REBATING IS UNFAIR TO THE BUYER ULTIMATELY IN PART BECAUSE THE DISCOUNT BUYER IS LIKELY TO GET LESS SERVICE FROM THE AGENT SAYS BRUCE POULSEN A REGIONAL COUNSEL FOR PRUDENTIAL AGENTS WHO REBATE SAY INSURERS SUCH AS PRUDENTIAL ARE SIMPLY TRYING TO PROTECT THEIR EXISTING AGENTS' INCOME STREAMS BOTH MR NELSON AND MR WHITE OF SAN DIEGO SAY INSURANCE COMPANIES AND AGENTS HAVE BEEN MOST PERTURBED WHEN THE REBATERS HAVE RUN ADS TOUTING INSURANCE DISCOUNTS AND REBATES THEY DON'T WANT CONSUMERS TO BE EDUCATED ABOUT SUCH OPTIONS SAYS MR WHITE WHOSE DIRECT INSURANCE SERVICES OFFERS A 50 COMMISSION REBATE ON INITIAL AND SUBSEQUENT PREMIUMS IN COMPLAINING ABOUT INSURERS THAT DECLINE TO DO BUSINESS WITH HIM MR WHITE HAS A SYMPATHETIC EAR IN CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI THE REGULATOR HAS SAID HE SEES REBATES AS BEING IN THE PUBLIC'S INTEREST WHEN MR WHITE FIRST COMPLAINED TO REGULATORS IN 1991 MR GARAMENDI ISSUED A STATEMENT THAT EFFORTS BY INSURANCE COMPANIES OR AGENTS TO PREVENT SUCH DISCOUNTING OR TO PUNISH THOSE WHO DO OFFER DISCOUNTS WILL NOT BE TOLERATED AGENTS WHO WANT TO REBATE SAY THEY FACE A MORE HOSTILE REGULATORY CLIMATE IN FLORIDA MR KATT THE CONSULTANT WHO REFERS SOME CLIENTS TO A CALIFORNIA REBATER SAYS HE DOESN'T EVEN CONSIDER FLORIDA A REBATING STATE ANY MORE A KEY IMPEDIMENT A 1990 FLORIDA LAW THAT ALLOWS INSURANCE COMPANIES TO PROHIBIT THEIR AGENTS FROM GIVING REBATES PALM BEACH AGENT BARRY H SMALL WHO OFFERS A 90 COMMISSION REBATE FILED A LAWSUIT AGAINST THE FLORIDA DEPARTMENT OF INSURANCE IN 1991 CHALLENGING THE CONSTITUTIONALITY OF THAT 1990 LAW A FLORIDA COURT DENIED THE INSURANCE DEPARTMENT'S MOTION TO DISMISS THE CASE THE INSURANCE DEPARTMENT BELIEVES THAT MR SMALL'S CASE IS WITHOUT MERIT AND THAT THE STATUTE IS CONSTITUTIONAL SAYS DEPARTMENT ATTORNEY S MARC HERSKOVITZ MR SMALL HAS ALSO SUED MANUFACTURERS LIFE INSURANCE CO A BIG CANADIAN INSURER THAT TERMINATED HIS SELLING AUTHORITY IN 1991 WE CAN NO LONGER DO BUSINESS TOGETHER AS LONG AS YOUR REBATE SCHEDULE REMAINS IN EFFECT THE TERMINATION LETTER SAYS IN PART MANUFACTURERS ENDED MR SMALL'S SELLING AUTHORITY IN ACCORDANCE WITH THE TERMS OF HIS CONTRACT AND THE LAW OF THE STATE OF FLORIDA ACCORDING TO A COMPANY SPOKESMAN HOW COMMISSIONS CAN AFFECT A LIFEINSURANCE POLICY'S PROJECTED SURRENDER VALUE THE AMOUNT A POLICYHOLDER WOULD GET UPON DROPPING THE POLICY AFTER A CERTAIN NUMBER OF YEARS COMPARISON IS FOR 100000 OF UNIVERSAL LIFEINSURANCE COVERAGE FROM AMERITAS LIFE INSURANCE CORP FOR A NONSMOKING MAN AGE 45 PAYING A 1500 ANNUAL PREMIUM 9303250085 930325 BANKAMERICA SET FOR OVERCHARGES BY SECURITY PACIFIC BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO BANKAMERICA CORP HAS SET ASIDE ABOUT 50 MILLION TO PAY BACK CUSTOMERS WHO THE BANK SAID WERE FREQUENTLY OVERCHARGED ON TRUST FEES BY THE TRUST DEPARTMENT OF SECURITY PACIFIC CORP WHICH BANKAMERICA ACQUIRED LAST YEAR BANKAMERICA ACKNOWLEDGED THAT SECURITY PACIFIC'S TRUST DEPARTMENT OVERCHARGED CUSTOMERS FOR YEARS PRIOR TO THE TWO BANKS' 42 BILLION MERGER BANKAMERICA SAID SECURITY PACIFIC FREQUENTLY RAISED FEES FOR CERTAIN CUSTOMERS WITHOUT PROPERLY INFORMING THEM THAT THEIR TRUST AGREEMENTS SOMETIMES PROHIBITED SUCH FEE INCREASES BANKAMERICA SAID THE PRACTICE HAS BEEN STOPPED AND INSISTED THAT SECURITY PACIFIC HADN'T INTENDED TO MISLEAD THE CUSTOMERS A SPOKESMAN CALLED THE OVERCHARGES MISTAKES AND ADDED THAT SECURITY PACIFIC HAD MADE SOME REFUNDS TO OVERCHARGED CUSTOMERS BEFORE THE MERGER WAS COMPLETED HOWEVER THE ADMISSION OF SUCH LARGE PERVASIVE OVERCHARGES IS LIKELY TO TRIGGER A TORRENT OF LAWSUITS AGAINST BANKAMERICA FEDERAL BANKING REGULATORS ALSO ARE INVESTIGATING THE MATTER THE NEWS MAY HAVE RATTLED SOME INVESTORS IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY BANKAMERICA SHARES CLOSED AT 4975 DOWN 125 THE OVERCHARGING WAS FIRST REPORTED BY THE SAN FRANCISCO CHRONICLE A BANKAMERICA SPOKESMAN SAID BANKAMERICA WAS INFORMED BY SECURITY PACIFIC OF POTENTIAL PROBLEMS IN THE TRUST DEPARTMENT LAST MARCH BEFORE THE MERGER CLOSED BANKAMERICA NOTIFIED FEDERAL BANKING REGULATORS AND LAUNCHED AN INTERNAL INVESTIGATION THAT TURNED UP WIDESPREAD OVERCHARGES BANKAMERICA SAID THE SNAFU WON'T HAVE ANY IMMEDIATE IMPACT ON ITS FINANCIAL RESULTS BECAUSE RESERVES WERE SET ASIDE IN THE FOURTH QUARTER TO COVER COSTS RELATED TO THE PROBLEM 9303250084 930325 USAIR ADMITS EMPLOYEES IN TWO CITIES FALSIFIED CERTAIN JETREPAIR RECORDS BY BRETT PULLEY AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL USAIR SAID IT IS COOPERATING FULLY WITH A FEDERAL AVIATION ADMINISTRATION INVESTIGATION OF ITS AIRCRAFT MAINTENANCE AFTER A DISCLOSURE THAT USAIR EMPLOYEES FALSIFIED CERTAIN JETREPAIR RECORDS USAIR A UNIT OF USAIR GROUP INC BASED IN ARLINGTON VA CONFIRMED REPORTS THAT SUPERVISORS AT ITS MAINTENANCE FACILITIES IN INDIANAPOLIS AND CHARLOTTE NC HAVE SIGNED OFF ON AIRCRAFT REPAIRS THAT WERE NEVER DONE NONE OF THE IRREGULARITIES AT INDIANAPOLIS INVOLVED MATTERS RELATED TO AIR SAFETY USAIR SAID IN A STATEMENT THE CARRIER SAID THE QUESTIONABLE MAINTENANCE ACTIVITY HAS BEEN CONFINED TO TWO INDIVIDUALS IN INDIANAPOLIS IN THE CHARLOTTE INCIDENT THE AIRLINE SAID IT TOOK IMMEDIATE DISCIPLINARY ACTION BUT THE FAA IS NOW LOOKING INTO THE MOST RECENT INCIDENT IN INDIANAPOLIS ACCORDING TO AN AGENCY SPOKESMAN HE WOULDN'T CONFIRM AN ASSOCIATED PRESS REPORT THAT THE INVESTIGATION HAS BEEN EXPANDED TO INCLUDE USAIR FACILITIES IN PITTSBURGH AND GREENSBORO NC I AM AWARE OF ADDITIONAL ALLEGATIONS BY THE MACHINIST UNION SAID THE FAA SPOKESMAN FRED FARRAR TENSION BETWEEN USAIR AND ITS MACHINISTS HAS PERSISTED FOR MONTHS REPRESENTED BY THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS THE MACHINISTS WALKED OFF THE JOB FOR A WEEK LAST FALL AFTER CONTRACT NEGOTIATIONS WITH THE COMPANY FELL APART VICTOR MAZZOCCO THE LABOR GROUP'S ASSISTANT GENERAL CHAIRMAN SAID SUPERVISORS ARE TRYING TO BERATE OUR INDIVIDUALS INTO A PRACTICE THAT THE SUPERVISORS KNOW IS IMPROPER THE MANPOWER HAS SLOWLY ERODED TO THE EXTENT THAT WE CAN'T ACCOMPLISH OUR ASSIGNED TASKS IN THE REQUIRED TIMEFRAME IN ITS STATEMENT USAIR SAID IT HAS NEVER SUGGESTED THAT EMPLOYEES SHOULD BEND ANY RULES OR TAKE SHORTCUTS A LETTER FROM A USAIR SENIOR VICE PRESIDENT WAS RECENTLY SENT TO ALL SUPERVISORS OF THE AIRLINE'S 38 MAINTENANCE FACILITIES WARNING THAT ANY VIOLATIONS OF COMPANY MAINTENANCE STANDARDS WILL NOT BE TOLERATED THE AIRLINE SAID LAST FALL THE FAA SUSPENDED FOR 180 DAYS THE MECHANICS CERTIFICATE OF A USAIR MAINTENANCE SUPERVISOR IN CHARLOTTE WHO HAS ACCORDING TO THE AP ADMITTED LETTING A JET FLY MAY 29 WITH A DEFECTIVE WARNING SYSTEM TO SAVE THE AIRLINE MONEY THE PILOT ALSO HAD HIS LICENSE SUSPENDED FOR 30 DAYS MR FARRAR SAID AS FOR USAIR IT ALREADY HAS SUSPENDED AND DEMOTED THE SUPERVISOR AND IT PLANS TO TAKE DISCIPLINARY ACTION AGAINST TWO FOREMEN IN INDIANAPOLIS WHO SIGNED FOR NEVERDONE REPAIRS OR SIGNED REPAIR RECORDS THAT SHOULD HAVE BEEN SIGNED BY MECHANICS UNDER THEM SUCH SIGNOFF PRACTICES KNOWN IN THE INDUSTRY AS PENCIL WHIPPING ARE PROHIBITED BY THE FAA 9303250083 930325 DRESDNER BANK SETS RIGHTS ISSUE FRANKFURT GERMANY DRESDNER BANK AG GERMANY'S SECONDLARGEST BANK CONFIRMED IT PLANS A LARGE CAPITAL INCREASE INVOLVING A RIGHTS ISSUE PRIOR TO ITS MAY 14 SHAREHOLDERS MEETING DETAILS OF THE CAPITAL INCREASE WILL BE RELEASED AT THE APRIL 1 NEWS CONFERENCE CALLED TO DISCLOSE 1992 EARNINGS WE ANTICIPATE CONTINUED CREDIT GROWTH A SPOKESMAN SAID IN EXPLAINING THE PLANNED CAPITAL INCREASE EACH SHAREHOLDER CURRENTLY OWNING 19 SHARES WILL BE ABLE TO PURCHASE TWO ADDITIONAL SHARES THE SPOKESMAN SAID 9303250081 930325 LEISURE & ARTS TV MARY TYLER MOORE AND BEAU BRIDGES AS VILLAINS BY DOROTHY RABINOWITZ THIS IS THE STORY OF THE TENNESSEE CHILDREN'S HOME AND ITS NOW NOTORIOUS OWNER GEORGIA TANN WHO IN THE 1940S SOLD ROUGHLY 5000 BABIES TO CHILDLESS COUPLES AROUND THE NATION AND A WRENCHING INTELLIGENTLY WROUGHT STORY IT IS SCRIPT BY SHARON ELIZABETH DOYLE THE FILM OWES ITS CONSIDERABLE POWER TO A TRIO OF STELLAR PERFORMANCES FROM MARY TYLER MOORE AS THE VILLAINESS LEA THOMPSON AS THE SOCIAL WORKER WHO UNCOVERS THE OPERATION AND KATHLEEN QUINLAN AS AN ADOPTIVE PARENT MS MOORE'S PROUD AGED GEORGIA IS WONDERFUL TO BEHOLD REVERED IN ALL MEMPHIS AS A MINISTERING ANGEL WHO COULD BRING THE BLESSINGS OF PARENTHOOD TO INFERTILE COUPLES HER SUCCESS RESTED ON A SIMPLE PRINCIPLE STEALING BABIES FROM THE POOR AND SELLING THEM TO THE RICH FOR A HANDSOME PRICE THIS IS NOT YOUR STANDARD MADEFORTV WEEPER WHY MASTERPIECE THEATRE IS PROMOTING ITS NEW PRODUCTION OF THIS HARROWING IBSEN PORTRAIT OF A DRIVEN AND DEADLY HEROINE AS A PROTEST AGAINST A SEXIST DOUBLESTANDARD SOCIETY IS HARD TO IMAGINE THE PRODUCT OF AN ART AND A TIME 1890 NOW GONE THE DREADFUL HEDDA AND HER BEHAVIOR REMAIN DESPITE IBSEN'S FAMOUS SOCIAL CONCERNS A MYSTERY OF CHARACTER AND A HIGHLY REWARDING ONE DRAMATICALLY SPEAKING THIS ABBEY THEATRE PRODUCTION INCLUDES STEPHEN REA THE CRYING GAME AND FIONA SHAW AN ADMIRABLE HEDDA NOTWITHSTANDING AN OCCASIONAL TENDENCY TO CONFUSE HER CHARACTER WITH THE MAD OPHELIA THIS FACTBASED STORY CONCERNS A DEVOTED PHYSICIAN AND MEDICAL RESEARCHER AT STANFORD UNIVERSITY WHO FOUND TIME IN HIS BUSY CAREER TO HAVE THREE WIVES SIMULTANEOUSLY THIS MAY SEEM THE STUFF OF SITCOMS OR SUPERMARKET TABLOIDS BUT IN FACT THANKS TO BEAU BRIDGES WHO PLAYS THE TRIGAMIST IT IS THE STUFF OF A VERY GOOD MOVIE ARNOLD SHAPIRO IS THE EXECUTIVE PRODUCER PETER LEVIN DIRECTED AND DEBORAH SERRA WROTE THE SCRIPT THE DOCTOR'S THREE SPOUSES ARE ALL HIGHLY SOPHISTICATED AND INTELLIGENT WOMEN WHO MANAGE FOR THE LONGEST TIME TO PRESERVE THEMSELVES FROM SUSPICIONS ABOUT THEIR HUSBAND'S DECIDEDLY ODD BEHAVIOR ON THE EXCUSE THAT HE'S BEEN CALLED TO THE HOSPITAL THIS PHYSICIAN GETS TO LURCH FROM BED TO BED WIFE TO WIFE IN THE COURSE OF A SINGLE NIGHT AND TO PRACTICE SERIOUS MEDICINE IN THE MORNING IT CAN'T HAVE BEEN EASY TO MAKE THE AMOROUSLY ADVENTUROUS DR NORMAN GRAYSON A SERIOUS AND APPEALING FIGURE AND A MORDANT WIT BUT MR BRIDGES HAS WITH GREAT SKILL DONE JUST THAT IT'S AN IMPRESSIVE ACCOMPLISHMENT THOUGH NOTHING COMPARED WITH THE STUPEFYINGLY ENERGETIC LIFE OF THE ACTUAL DOCTOR SET IN THE 1830S THIS TWO PART MASTERPIECE THEATRE PRESENTATION IS BASED ON CATHERINE COOKSON'S NOVEL ABOUT AN IMPOVERISHED WIDOW IN NORTHUMBERLAND AND HER CHILDREN ONE OF THE LATTER WILL GROW UP A REVOLUTIONARY OF SORTS WHO STRUGGLES AGAINST CLASS BARRIERS THAT KEEP WORKING PEOPLE FROM LEARNING TO READ FULL OF INCIDENTS OF DICKENSIAN CRUELTY TOWARD THE POOR AND BLESSED BY A BUOYANTLY HAPPY ENDING ALSO OUT OF DICKENS THIS IS A TALE OF SOME COMPLEXITY THE WIDOW MILLICAN JANET MCTEER AND HER CHILDREN ARE TAKEN IN BY A MR MILLER BOB PECK AN AGING SCHOLAR WHOSE LOVE OF BEAUTIFUL YOUNG BOYS LEADS TO TROUBLE FROM THIS LONELY TEACHER THOUGH THE MILLICAN DAUGHTER LEARNS TO READ AND WRITE AND SPEAK LATIN AND FRENCH ACCOMPLISHMENTS LIKE THESE OUTRAGE HER EMPLOYERS AND OTHERS WHO CONSIDER THEMSELVES HER BETTERS WHEN SHE GOES INTO DOMESTIC SERVICE WITH GERALDINE SOMERVILLE IN THE ROLE OF THE DAUGHTER AND MS MCTEER THIS PRODUCTION OFFERS TWO OF THE BEST PERFORMANCES AND POSSIBLY THE BEST DRAMA ALTOGETHER OF THE MASTERPIECE THEATRE SEASON WOMEN FACTORY WORKERS ARE ORDERED TO GET THEMSELVES STERILIZED BECAUSE THEIR JOBS BRING THEM INTO CONTACT WITH HAZARDOUS MATERIALS THAT MAY CAUSE THEM TO BEAR GENETICALLY DAMAGED BABIES A POTENTIALLY POWERFUL TALE WITH ELIZABETH PERKINS AS THE LEAD VICTIM THE FILM OVERDOSES ON A DIFFERENT KIND OF HAZARDOUS MATERIAL NAMELY THE THEMES OF EXPLOITATION AND MALE OPPRESSION WITH RESULTS HAZARDOUSLY CLOSE TO LETHAL DRAMATICALLY SPEAKING 9303250080 930325 TECHNOLOGY & HEALTH SCIENTISTS REFUTE DORMANCY ISSUE OF HIV STUDY SAYS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS HAVE REFUTED THE LONGHELD BELIEF THAT THE HUMAN IMMUNODEFICIENCY VIRUS OR HIV LIES DORMANT AND NEARLY UNDETECTABLE FOR AS LONG AS A DECADE BEFORE AIDS SYMPTOMS APPEAR THE FINDINGS REPORTED THIS WEEK IN THE BRITISH JOURNAL NATURE LIKELY WILL ACCELERATE TREATMENT STRATEGIES FOR THE DISEASE ACCORDING TO A GROUP FROM THE NATIONAL INSTITUTES OF HEALTH HIV IS MULTIPLYING FURIOUSLY IN SEQUESTERED SITES WITHIN THE LYMPH NODES AND RELATED ORGANS SUCH AS THE SPLEEN TONSILS AND ADENOIDS NETWORKS OF TENDRILS TRAP THE VIRUS IN LYMPH TISSUES AND PASS IT ON TO CIRCULATING IMMUNESYSTEM CELLS LIKE THELPER CELLS THAT FLOCK THERE IN RESPONSE TO THE INFECTION LYMPH NODES TRAP VIRUSES AND EXPOSE THEM TO THE IMMUNE SYSTEM SURVEILLANCE THE DISCOVERY OF MASSIVE COVERT INFECTION WHILE PATIENTS STILL LOOK AND FEEL WELL REDOUBLES THE NEED FOR EARLIER ANTIVIRAL TREATMENT THE FINDINGS BY TEAMS FROM THE NIH AND THE UNIVERSITY OF MINNESOTA ARE PUBLISHED IN TODAY'S ISSUE OF NATURE IN ADDITION TO RIGHTING MISCONCEPTIONS ABOUT DORMANCY THE FINDINGS SEEM TO RESOLVE ONE OF THE MOST STUBBORN MYSTERIES ABOUT THE EPIDEMIC NAMELY HOW CAN THE VIRUS CRIPPLE AND DEPLETE THE IMMUNE SYSTEM WHEN THERE IS SO LITTLE OF IT IN THE BLOOD THIS SEEMING PARADOX HAS LED SOME TO SUGGEST THAT HIV ALONE WASN'T EVEN THE CAUSE OF AIDS THE AUTHOR OF ONE OF THE NEW REPORTS ANTHONY FAUCI DIRECTOR OF THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES SAID THAT AT LEAST 10 TIMES MORE VIRUS IS FOUND IN THE LYMPH NODES THAN IN THE BLOODSTREAM FOR MANY YEARS UNTIL IMMUNE SYSTEM BURNOUT OCCURS AND THE LYMPH NODES BREAK DOWN ALLOWING SPILLOVER OF THE VIRUS INTO THE BLOODSTREAM IN LATESTAGE AIDS IN A SECOND PAPER ASHELEY HAASE OF THE UNIVERSITY OF MINNESOTA USED POLYMERASE CHAIN REACTION TECHNOLOGY AND FOUND TCELLS BECOME INFECTED EARLIER AND IN GREATER NUMBERS THAN PREVIOUSLY KNOWN THOUGH THEY MAY REMAIN LATENT IN A NATURE EDITORIAL NOBEL LAUREATE HOWARD TEMIN OF THE UNIVERSITY OF WISCONSIN AND HIV EXPERT DANI BOLOGNESI OF DUKE UNIVERSITY ARGUED THAT THE NEW REPORTS PROVE VAST AMOUNTS OF HIV ARE HIDING IN EARLY INFECTION LEAVING LITTLE DOUBT THAT THE VIRUS ITSELF IS SUFFICIENT TO BRING ABOUT THE DISEASE THE LYMPH NODES ARE A HOT SPOT YOU'VE GOT A LOT OF VIRUS EARLY ON SAID DR TEMIN IN AN INTERVIEW THE FINDINGS MAY CAUSE CLINICIANS TO RECONSIDER THEIR APPROACH TO TREATMENT CURRENTLY EXPERTS RECOMMEND THAT PATIENTS BEGIN TAKING ANTIVIRAL DRUGS WHEN THEIR LEVEL OF INFECTION FIGHTING TCELLS FALLS BELOW 500 OR ROUGHLY HALF THE NORMAL LEVEL PER CUBIC MILLIMETER OF BLOOD NOW DR FAUCI SAID THE RATIONALE IS STRENGTHENED FOR EARLY TREATMENT THE NIH ALREADY IS LAUNCHING A STUDY OF PEOPLE WITHIN WEEKS OF EXPOSURE TO THE VIRUS WHEN THEIR BODY IS EXHIBITING THE HALLMARK RASH AND FLULIKE SYMPTOMS OF A BRANDNEW HIV INFECTION THE PLACEBOCONTROLLED STUDY WILL DETERMINE WHETHER AN EARLY AND AGGRESSIVE BURST OF THE ANTIVIRAL DRUG AZT CAN DELAY THE ONSET OF AIDS SYMPTOMS 9303250079 930325 THE TAX AND REVENUE EQUATION BY W KURT HAUSER QUESTION WHAT PERCENTAGE OF GROSS DOMESTIC PRODUCT IS COLLECTED IN TAXES REGARDLESS OF TAX RATES THE HISTORICAL RECORD IS QUITE SIMPLE IF SURPRISING NO MATTER WHAT THE TAX RATES HAVE BEEN IN POSTWAR AMERICA TAX REVENUES HAVE REMAINED AT ABOUT 195 OF GDP THIS IS A LESSON CONGRESS SHOULD REMEMBER AS IT CONSIDERS PRESIDENT CLINTON'S PROPOSED TAX HIKES IF HISTORY IS ANY GUIDE HIGHER TAXES WILL NOT INCREASE THE GOVERNMENT'S TAKE AS A PERCENTAGE OF THE ECONOMY OVER THE PAST 44 YEARS THERE HAVE BEEN 25 SUBSTANTIVE CHANGES IN THE FEDERAL TAX CODES WITH THE TOP MARGINAL PERSONAL INCOME TAX RATE RANGING AS HIGH AS 92 AND AS LOW AS 28 THIS PERIOD HAS ALSO WITNESSED NUMEROUS CHANGES IN CORPORATE TAX RATES INVESTMENT TAX CREDITS SURTAXES EXCISE TAXES CAPITAL GAINS TAXES AND DEPRECIATION SCHEDULES OVER THE PAST FOUR DECADES FEDERAL GOVERNMENT REVENUES AS A FRACTION OF GDP HAVE AVERAGED SLIGHTLY BELOW ONEFIFTH OR ABOUT 195 DURING THE PERIOD ILLUSTRATED ON THE CHART SEE ACCOMPANYING ILLUSTRATION WSJ MARCH 25 1993 THE QUARTERLY DATA OF FEDERAL RECEIPTS AS A PERCENTAGE OF GDP HAVE TEMPORARILY STRAYED AS HIGH AS 215 AND AS LOW AS 169 ON AN ANNUAL BASIS REVENUES HAVE BEEN AS HIGH AS 211 1981 OF GDP AND AS LOW AS 179 1964 AND 1965 VARIATIONS AROUND THE MEAN OF 195 HAVE OCCURRED WHEN THERE WERE NO CHANGES IN THE TAX CODE AS WELL AS DURING PERIODS OF CHANGE AN ANALYSIS OF THE RELATIONSHIP BETWEEN FEDERAL GOVERNMENT RECEIPTS AND CHANGES IN THE TAX CODES IS MARRED BY SEVERAL LEGISLATIVE ACTS OVERLAPPING WITH OTHERS AND BY COUNTERVAILING CHANGES WITHIN SPECIFIC ACTS NONETHELESS A REVIEW OF THE MAJOR TAX BILLS SUCH AS THE REVENUE ACT OF 1964 THE REVENUE AND EXPENDITURE CONTROL ACT OF 1968 THE ECONOMIC RECOVERY ACT OF 1981 THE TAX REFORM ACT OF 1986 AND THE OMNIBUS BUDGET RECONCILIATION ACT OF 1990 AMONG OTHERS INDICATES THAT REVENUES AS A PERCENTAGE OF GDP IN THE TWO YEARS PRIOR TO CHANGES IN TAX RATES WERE NOT MEANINGFULLY DIFFERENT FROM THOSE IN THE TWO YEARS FOLLOWING THERE IS NO CORRELATION BETWEEN TAX RATE CHANGES AND GOVERNMENT REVENUES AS A PERCENTAGE OF GDP ECONOMICS ENCOMPASSES THE DYNAMICS OF BEHAVIOR A PHENOMENON OVERLOOKED IN ALL STATIC MODELS OF TAXATION AND REVENUE GENERATION THANKS TO ARTHUR LAFFER WE KNOW THAT A TAX OF 100 WILL NOT COLLECT 100 OF THE INCOME RAISING TAXES ENCOURAGES TAXPAYERS TO SHIFT HIDE AND UNDERREPORT INCOME THE CREATIVE RICH WILL AVOID PAYING HIGHER TAXES WHILE THE LESS CREATIVE RICH WILL PAY MORE TAXES ONE OFFSETTING THE OTHER TAX SHELTERS FLOURISH DURING PERIODS OF HIGH TAXATION HIGHER TAXES REDUCE THE INCENTIVES TO WORK PRODUCE INVEST AND SAVE THEREBY DAMPENING OVERALL ECONOMIC ACTIVITY AND JOB CREATION HIGHER TAXES REDUCE DEMAND THERE IS NO ECONOMIC THEORY BE IT CLASSICAL NEOCLASSICAL KEYNESIAN SUPPLYSIDE OR MARXIST THAT PROMOTES HIGHER TAXES AS A STIMULUS TO ECONOMIC ACTIVITY INDEED BOTH THE KEYNESIAN AND SUPPLYSIDE MODELS AGREE THAT LOWERING TAXES STIMULATES ECONOMIC ACTIVITY WHILE RAISING TAXES HAMPERS ECONOMIC ACTIVITY THUS UNDER A TAX INCREASE THE NUMERATOR REVENUES WILL RISE LESS THAN THE FORECAST WHILE GDP THE DENOMINATOR WILL ALSO ADVANCE LESS THAN THE FORECAST BUT THE QUOTIENT PERCENTAGE COLLECTED WILL BE THE SAME CONVERSELY LOWER TAXES CAUSE TAXPAYERS TO REPORT MORE AND HIDE LESS OF CURRENT INCOME LOWER TAX RATES ALSO ACT AS A STIMULUS TO ECONOMIC ACTIVITY BY INCREASING INCENTIVES AND DEMAND THUS UNDER A TAX REDUCTION REVENUES WILL RISE TO A GREATER DEGREE THAN WOULD OTHERWISE BE THE CASE GDP WILL ALSO ADVANCE MORE THAN FORECAST BUT AGAIN THE QUOTIENT PERCENTAGE COLLECTED WILL ADJUST TO THE 195 MEAN IF TAX RATE CHANGES DO NOT ALTER THE RELATIONSHIP BETWEEN REVENUES AND GDP WHICH DIRECTION OF CHANGE BEST SUITS THE OVERALL ECONOMY IN THE POSTWAR PERIOD ECONOMIC ACTIVITY AS MEASURED BY GDP HAS ACCELERATED IN THE FOUR QUARTERS FOLLOWING A LOWERING OF TAX RATES WHILE GDP HAS EXPERIENCED A DECLINE IN GROWTH RATES IN THE FOUR QUARTERS FOLLOWING TAX HIKES EMPLOYMENT GROWTH AND ECONOMIC ACTIVITY DO BETTER FOLLOWING A REDUCTION IN TAX RATES THAN DURING PERIODS FOLLOWING AN INCREASE IN TAX RATES HOW MANY JOBS WERE LOST BY THE LUXURY TAX OF 1990 ALL ADMINISTRATIONS WANT MORE REVENUE THOSE THAT ATTEMPTED TO GAIN REVENUE THROUGH HIGHER TAXES WERE THWARTED BY THE DISINCENTIVES TO ECONOMIC GROWTH CAUSED BY THE HIGHER RATES THE PACKAGE BEING OFFERED BY PRESIDENT CLINTON STRESSES DEFICIT REDUCTION THROUGH INCREASES IN BOTH USER TAXES ENERGY AND INCOME TAX RATES BUT FEDERAL GOVERNMENT REVENUES AFTER A POSSIBLE SHORTTERM DISLOCATION WILL ADJUST WITHIN A COUPLE OF QUARTERS TO THE HISTORIC 195 MEAN LEVEL OF GDP IF THE BOGEYMAN IS THE DEFICIT THEN ITS CAUSE HAS TO BE ADDRESSED WHILE TAXES AS A PERCENTAGE OF GDP HAVE NARROWLY FLUCTUATED AROUND THE AVERAGE OF 195 OVER THE PAST FOUR DECADES FEDERAL SPENDING AS A PERCENTAGE OF GDP HAS RISEN FROM 19 IN THE EARLY 1960S TO A RANGE OF 22 TO 25 OVER THE PAST 10 YEARS THE DEFICIT IS THE RESULT NOT OF A SHORTFALL OF REVENUES BUT OF AN EXCESS OF SPENDING THEREFORE IF REDUCING THE DEFICIT OR EVEN BALANCING THE BUDGET IS THE PRINCIPAL POLICY GOAL IT CAN BE ACHIEVED ONLY THROUGH SPENDING REDUCTIONS UNFORTUNATELY THE ORIGINAL CLINTON GOAL OF 3 OF SPENDING REDUCTION FOR EVERY 1 OF TAX INCREASE HAS BEEN REVERSED AND EACH DAY THE RATIO SEEMS TO DETERIORATE TO REDUCE GOVERNMENT OUTLAYS AS A FRACTION OF GDP FROM 25 TO 195 IN THE INTERESTS OF A BALANCED BUDGET THE DENOMINATOR GDP MUST GROW AT A FASTER RATE THAN THE NUMERATOR SPENDING LOWER TAXES ARE MORE EXPANSIONARY AND STIMULATIVE TO GDP THAN HIGHER TAXES ACCORDING TO ALL ECONOMIC THEORIES AND THEREFORE WILL EXPAND THE DENOMINATOR GDP MORE RAPIDLY LEGISLATORS HAVE INITIATED THE DEBATE ON PRESIDENT CLINTON'S BUDGET PROPOSALS INCLUDING AN INCREASE IN THE TOP MARGINAL PERSONAL TAX RATE TO 36 FROM 31 A 10 SURTAX ON INCOMES ABOVE 250000 AN INCREASE IN THE ALTERNATIVE MINIMUM TAX TO 28 FROM 24 AN INCREASE IN INHERITANCE TAXES TO 55 FROM 50 AN INCREASE IN EMPLOYEE AND EMPLOYER MEDICARE TAXES CALLED A SPENDING REDUCTION AN INCREASE IN THE CORPORATE TAX RATE FROM 34 TO 36 AND AN INCREASE IN ENERGY TAXES BOTH THE ADMINISTRATION AND CONGRESS SHOULD REVIEW THEIR HISTORY TEXTS CHANGES IN THE RATE OF TAXATION DO NOT ALTER REVENUES RELATIVE TO GDP LOWER TAXES HOWEVER DO PROVIDE A GREATER STIMULUS TO ECONOMIC ACTIVITY AND JOB FORMATION THAN HIGHER TAXES IMPROVED ECONOMIC ACTIVITY RAISES GDP AND TOTAL EMPLOYMENT MORE EMPLOYMENT MEANS MORE TAX RECEIPTS AND AN INCREASE IN ABSOLUTE REVENUES TO THE GOVERNMENT NINETEEN AND A HALF PERCENT OF A LARGER GDP IS PREFERABLE TO 195 OF A SMALLER GDP MR HAUSER IS PRESIDENT OF AN INVESTMENT COUNSEL FIRM IN SAN FRANCISCO AND A MEMBER OF THE BOARD OF OVERSEERS OF THE HOOVER INSTITUTION 9303250078 930325 TECHNOLOGY AL LABS WINS A DRUG APPROVAL FORT LEE NJ AL LABORATORIES INC SAID ITS DUMEX LTD PHARMACEUTICALS UNIT RECEIVED APPROVAL IN SWEDEN TO MARKET ITS DUMICOAT ANTIFUNGAL FOR DENTURE WEARERS THE REGULATORY APPROVAL IS THE FIRST THE COMPANY HAS RECEIVED FOR ITS PATENTED CONTROLLEDRELEASE PRODUCT FOR TREATMENT OF A FUNGAL DISEASE AFFECTING DENTURE WEARERS KNOWN AS DENTURE STOMATITIS DUMEX WILL BEGIN MARKETING DUMICOAT IN SWEDEN SHORTLY THE COMPANY ESTIMATES SALES OF DUMICOAT COULD REACH 25 MILLION A YEAR IN EUROPE WITH A SIMILARSIZED MARKET POTENTIAL IN THE US 9303250077 930325 NOTABLE & QUOTABLE REP CHRISTOPHER COX R CALIF COMMENTING ON CONGRESS'S BUDGET DEBATE FROM THE MARCH 17 CONGRESSIONAL RECORD MR CHAIRMAN LISTENING TO THIS DEBATE IT HAS OCCURRED TO ME THAT THE AMERICAN PEOPLE MIGHT WONDER WHO IS TELLING THE TRUTH HERE ONE SIDE SAYS WE ARE RAISING TAXES BUT WE ARE CUTTING SPENDING THE OTHER SIDE SAYS YOU ARE NOT CUTTING SPENDING YOU ARE RAISING SPENDING AND RAISING TAXES AND IT IS THE SAME OLD TAXANDSPEND I AM GOING TO PUT MY MONEY WHERE MY MOUTH IS I WILL WRITE OUT A CHECK FROM MY OWN PERSONAL FUNDS PAYABLE TO BILL CLINTON AND THE DEMOCRATIC NATIONAL COMMITTEE 100000 IF SPENDING NEXT YEAR IS LESS THAN THIS YEAR I WILL RESIGN MY SEAT IN CONGRESS AND I WILL WRITE OUT 100 TIMES I APOLOGIZE TO THE DEMOCRATS THEY WERE TELLING THE TRUTH THEY REALLY DID CUT SPENDING 9303250076 930325 NEW INDEXES FROM WORLD BANK UNIT COULD GIVE EMERGING MARKETS A BOOST BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL EMERGING STOCK MARKETS IN DEVELOPING COUNTRIES COULD GET A BIG INJECTION OF INVESTMENT CASH IN COMING MONTHS THAT'S BECAUSE THE INTERNATIONAL FINANCE CORP A WORLD BANK UNIT INTRODUCED NEW INDEXES THAT ARE EXPECTED TO BE USED BY PENSION FUNDS INSURANCE COMPANIES AND OTHER BIG INSTITUTIONAL INVESTORS TO GUIDE THEIR INITIAL FORAYS INTO EMERGING MARKETS THE NEW IFC INDEXES INCLUDE ONLY THOSE STOCKS IN EMERGING MARKETS AVAILABLE TO FOREIGNERS AND ARE DESIGNED TO ENHANCE FOREIGN INVESTORS' ABILITY TO MEASURE THEIR PERFORMANCE IN 18 EMERGING STOCK MARKETS MANY STOCKS IN EMERGING MARKETS AREN'T OPEN TO FOREIGN INVESTORS OR TRADE SO THINLY THAT INVESTING IN THEM IS TOO RISKY EMERGING STOCK MARKETS ARE ONE OF THE HOTTEST AREAS IN THE INVESTMENT COMMUNITY OVER THE PAST EIGHT YEARS SOME EMERGING STOCK MARKETS SUCH AS MEXICO'S CHILE'S AND THE PHILIPPINES' HAVE VASTLY OUTPERFORMED THE US STOCK MARKET AND THOSE IN OTHER MAJOR INDUSTRIAL COUNTRIES FROM THE END OF 1988 TO THE END OF 1992 THE NEW IFC INVESTABLE COMPOSITE INDEX OF 18 MARKETS OUTPERFORMED THE STANDARD & POOR'S 500STOCK INDEX BY 26 MEASURED IN DOLLARS EMERGING MARKETS HAVE INCLUDED THE FASTEST GROWING MOST PROFITABLE MARKETS OVER THE LAST FEW YEARS SAID DANIEL F ADAMS VICE PRESIDENT IN CHARGE OF THE IFC'S CAPITAL MARKETS DIVISION MR ADAMS SAID THAT WITHIN THE NEXT 60 TO 90 DAYS THE IFC WILL SET UP THE FIRST EMERGING MARKET INDEX FUND FOR INSTITUTIONAL INVESTORS HE EXPECTS ONE FOR INDIVIDUAL INVESTORS TO BE CREATED PERHAPS SOMETIME THIS YEAR THE IFC SAID IT PLANS TO LICENSE ITS INDEXES TO FUND MANAGERS INVESTORS IN INDEX FUNDS SEEK TO MATCH THE RETURNS OF AN INDIVIDUAL STOCK MARKET OR GROUP OF MARKETS BUT NOT BEAT THEM SUCH FUNDS COULD LURE A LOT OF BIG US AND FOREIGN INSTITUTIONAL INVESTORS THAT SO FAR HAVE LARGELY STEERED CLEAR OF EMERGING MARKETS MR ADAMS NOTED THAT WHILE US PENSION FUNDS AND INSURANCE COMPANIES HAVE ROUGHLY 3 TRILLION IN ASSETS ABOUT 30 OF WHICH IS INVESTED IN EQUITIES ALMOST NONE OF THAT IS IN EMERGING MARKETS EVENTUALLY THE IFC EXPECTS DERIVATIVE INSTRUMENTS SUCH AS WARRANTS AND OPTIONS TO BE CREATED BASED ON ITS INDEXES PEOPLE IN THE FINANCIAL COMMUNITY HAVE ASKED US TO CREATE INDEXES THAT REFLECT THE INVESTMENT UNIVERSE THAT IS LEGALLY AND PRACTICALLY AVAILABLE TO INTERNATIONAL OR GLOBAL INVESTORS SAID STEVEN A SCHOENFELD AN INVESTMENT OFFICER AT THE IFC A FUND MANAGER IN LONDON OR NEW YORK SHOULDN'T BE GUIDED BY WHAT IS SITTING ON THE GROUND IN THESE MARKETS BUT BY WHAT HE CAN ACTUALLY INVEST IN THE NEW INVESTABLE IFC INDEXES INCLUDE 650 STOCKS THAT FOREIGNERS CAN BUY IN 18 COUNTRIES ARGENTINA BRAZIL CHILE COLOMBIA MEXICO VENEZUELA SOUTH KOREA PHILIPPINES TAIWAN INDIA INDONESIA MALAYSIA PAKISTAN THAILAND GREECE JORDAN PORTUGAL AND TURKEY LATER THIS YEAR THE IFC PLANS TO ADD CHINA SRI LANKA HUNGARY AND PERU TO GIVE ITS INDEXES HISTORICAL CONTINUITY THE IFC CALCULATED THEIR PERFORMANCE BACK TO THE END OF 1988 INITIALLY THEY WILL BE TALLIED WEEKLY BUT THE IFC EXPECTS TO BE COMPUTING THE INDEXES DAILY BY YEAREND THE IFC IS THE WORLD BANK UNIT THAT SEEKS TO PROMOTE ECONOMIC GROWTH IN DEVELOPING COUNTRIES THROUGH PRIVATE SECTOR INVESTMENT THE ORGANIZATION HELPED PIONEER THE CREATION OF COUNTRY FUNDS IN THE 1980S WHICH GAVE FOREIGN INVESTORS THEIR FIRST OPPORTUNITY TO INVEST IN SOME EMERGING STOCK MARKETS 9303250075 930325 REVIEW & OUTLOOK EDITORIAL ON OREGON'S TRAIL THE CLINTON MODEL OF SCIENTIFIC STATISM TO REPAIR A MEDICAL INSURANCE APPARATUS IN DISREPAIR IS GETTING CLEARER THE GOVERNMENT IS GOING TO STEP IN BUT NOT WITH HUGE PUBLICSECTOR BUREAUCRACIES NO THE PROFESSIONALSCHOOL DEMOCRATS HAVE LEARNED BETTER RATHER WE WILL BUDGET FOR WHAT A RATIONAL SYSTEM OF COVERAGE FOR EVERYONE SHOULD COST AND THEN LEAVE IT TO MANAGED COMPETITION OR SOME OTHER FORM OF CONTRACT ADMINISTRATION TO DO THE DEED WHERE RATIONING IS REQUIRED AND IT SURELY WILL BE THE WHIZ KIDS WILL CONDUCT A FULL AND FAIR PROCESS FOR DETERMINING GUIDELINES THAT SERVE THE GENERAL INTEREST THE NEW TAXES REQUIRED TO PAY THE HIGHER OVERALL TAB WILL BE LEVIED AGAINST SOCIALLY UNDESIRABLE TARGETS THAT IS THE FRAMEWORK OF THE HILLARY RODHAM CLINTON HEALTH PLAN IN FORMATION AND IN BROAD OUTLINE IT IS THE TOUGHERMINDED OREGON ALTERNATIVE TO MEDICAID AS WELL THE ONE THAT WAS JUST APPROVED BY THE CLINTON ADMINISTRATION WE UNDERSTAND THE IMPATIENCE FOR CHANGE IN THE STATUS QUO VARIOUS TYPES OF PRIVATE AND PUBLIC INDEMNITY IN THE US HAVE CEASED TO BE A FUNCTION OF INSURANCE AND HAVE BECOME A CRAPSHOOT OR A LOTTERY IF YOU SCORE THE SKY'S THE LIMIT FOR MANY OTHERS THE GAME HAS BECOME PROHIBITIVE TO PLAY OREGON MAY BE THE PLACE TO WATCH AS THE FIRST REAL TEST OF SCIENTIFIC STATISM AS AN ALTERNATIVE OREGON'S PLAN COMBINES A COVERAGE MANDATE TO EMPLOYERS WITH LIMITS ON WHAT A UNIVERSAL HEALTH PLAN SHOULD AIM TO DO ITS EXPERIMENT STILL MAY NOT GET OFF THE GROUND THOUGH GOVERNOR BARBARA ROBERTS HAS BEEN TRYING TO RAISE TAXES SINCE SHE GOT INTO OFFICE AND HER ATTEMPT TO DO SO FOR THIS PURPOSE IS RENEWING A POWERFUL RESISTANCE AS A SORT OF LASTGASP OPTION THE CASCADE POLICY INSTITUTE IN PORTLAND HAS ISSUED A REPORT BY PETER FERRARA URGING OREGON TO CHOOSE A VOUCHER SYSTEM OVER THE CENTRAL PLANNING RATIONING SCHEME MR FERRARA ARGUES THAT NOTWITHSTANDING THE END OF TREATMENTS FOUND UNJUSTIFIABLE BY THE MEDICAID REFORMERS COSTS WILL GO UP UNDER THE OREGON PLAN HE SUGGESTS THE STATE INSTEAD ISSUE TO EACH POOR PERSON A MEDICAL VOUCHER OF THE AMOUNT IT PLANS TO SPEND VIA THE NEW PROGRAM AND LET HOUSEHOLDS SHOP FOR THEMSELVES IN A SOCIETY THAT WILL NOT COUNTENANCE EMERGENCIES GOING UNTREATED EVEN WHEN THE PATIENT'S OWN FOLLY HAS LEFT HIM SICK AND INDIGENT THAT POLICY HAS ITS HOLES THERE WILL BE NOPAY PATIENTS FOR SOMEONE TO HANDLE AND POLITICALLY A MARKETPLACE SOLUTION IS A HARD SELL BECAUSE OF GENERAL ANGER AT INSURERS AFTER THE EXPERIENCE OF RECENT YEARS BUT MR FERRARA STILL THINKS OREGON ON ITS OWN COULD FASHION A LABORATORY FOR CHANGE THROUGH CONSUMER CHOICE THAT WOULD ACTUALLY REIN IN COSTS OTHER POLITICAL AWAKENINGS ARE NEEDED ACROSS THE NATION IF WE'RE GOING TO GET SERIOUS ABOUT COMPETITIVE EFFICIENCY IN MEDICINE WHY FOR INSTANCE DOES THE US MAINTAIN A SEPARATE HOSPITAL SYSTEM FOR VETERANS THAT DUPLICATES CARE AND EQUIPMENT AVAILABLE AND OFTEN UNDERUTILIZED ELSEWHERE THE SAME MIGHT BE ASKED OF SOME PUBLIC HOSPITALS WHILE BEDS IN NONPROFIT FACILITIES GO BEGGING MEDICAID COSTS MEANWHILE CONTINUE THROUGH THE ROOF NATIONALLY THEY WERE UP 25 LAST YEAR IN CALIFORNIA 36 INSURANCE PREMIUMS FOLLOW THE SPIRAL UP OREGON IS TO BE CONGRATULATED FOR CHOOSING TO ACT THE SAD LIKELIHOOD IS THAT IT AND PERHAPS SOON THE NATION MAY BE WRITING OFF A MARKETDRIVEN MECHANISM THAT COULD WORK SCIENTIFIC STATISM IN MEDICINE AS IN TRADE INVESTMENT OR JOB CREATION ISN'T LIKELY TO OFFER A CURE 9303250074 930325 INTERNATIONAL MEXICAN WINEGROWERS CULTIVATE TASTE THAT GOES BEYOND BEER AND TEQUILA BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL ENSENADA MEXICO IT'S REVELRY TIME IN THE WOODPANELED TASTING ROOM OF BODEGAS DE SANTO TOMAS MEXICO'S OLDEST WINERY WE CAME DOWN SPECIFICALLY TO COME TO THIS PLACE JOKES ANTHONY JOHNSON A CRUISELINE VACATIONER AS HE SIPS SOME CHARDONNAY WE'RE FROM OHIO AND ALWAYS ON THE CUTTING EDGE WINEMAKING MEXICO THE CUTTINGEDGE THAT'S RIGHT THE GRAPE IS NO JOKE AMONG THE VINTNERS WHO POPULATE THE VALLEY NEAR ENSENADA A BEACH AND FISHING RESORT 50 MILES SOUTH OF THE CALIFORNIA BORDER WINE IS A VERY SENSUOUS THING SAYS TOMAS FERNANDEZ WHOSE COMMERCIAL VINTAGES ARE NOW SERVED BY MEXICO'S PRESIDENT CARLOS SALINAS DE GORTARI AND GERMANY'S LUFTHANSA AIRLINES WINE IS CULTURE DECLARES JOSE LUIS GONZALEZ A BASEBALLCAPPED JEANCLAD EDUCATOR WHO PREFERS THE REGION'S HOMEMADE WINES TO BE SURE MEXICO MAY BE BETTER KNOWN FOR BEER AND THE SPIRITS IT SQUEEZES FROM AGAVES AND OTHER SUCCULENTS NOT GRAPES FERMENTED JUICES FROM DESERT PLANTS ARE THE BASE OF ITS WORLDFAMOUS TEQUILA ITS LESSERKNOWN MESCAL AND ITS PULQUE A FULLBODIED BLUECOLLAR BREW IN THE MILKY WHITE SPECTRUM WITH GRASSY HIGHLIGHTS BUT WINEGROWING DATES BACK TO THE ARRIVAL OF SPANISH CONQUISTADOR HERNANDO CORTES WITH A FEW GRAPE CUTTINGS A CENTURY LATER A SPANISH KING ORDERED THE VINES UPROOTED WHEN HE FOUND HIS MEXICAN CHARGES TAKING TO WINEGROWING LIKE WELL SPANIARDS MEXICAN WINE HURT THE SPANISH WINE TRADE AN INDUSTRY REVIVAL FINALLY CAME THIS CENTURY WHEN EUROPEAN IMMIGRANTS BEGAN POPULATING BAJA CALIFORNIA ITALIAN FRENCH GERMAN AND EVEN RUSSIAN IMMIGRANTS BROUGHT THEIR KNOWHOW TO THE GUADALUPE VALLEY AS IMMIGRANTS HAD TO CALIFORNIA'S NAPA VALLEY IN THE LATE 1800S FROM ITALY CAME GRAPE CUTTINGS FROM FRANCE FANCY OAK CASKS FROM GERMANY A FONDNESS FOR WHITE WINES FROM RUSSIA CAME PEOPLE LIKE THE ROGOFF FAMILY PART OF A COLONY OF PACIFISTS WHO FLED WORLD WAR I AND CREATED A SPRAWLING ORCHARD IN THE GUADALUPE VALLEY WE ALL MAKE WINE HERE NOW THE RUSSIANS AND THE MEXICANS SAYS AGAVIA ROGOFF THE BLUEEYED IMMIGRANT'S DAUGHTER WHO HAS COAXED WINE FROM HER GNARLED VINES FOR DECADES IN A BACK ROOM PAINTED AN EYESHOCKING TURQUOISE THE 68YEAROLD MS ROGOFF POURS A GUEST A THICK GRAPEY SERVING OF HER WINE AND EXPLAINS ITS VIRTUES LIKE A NEW AGE SOMMELIER IT'S SWEET SWEET LIKE HONEY BUT NO SUGAR IS ADDED SHE SAYS AND SO GOOD FOR THE DIGESTION DRINK IT LIKE FRESH WATER SEVERAL BUMPS DOWN THE DIRT ROAD FROM MS ROGOFF'S HUMBLE SPREAD ARE THE DELICATE VINES OF MONTE XANIC PRONOUNCED SHANIC AN INDIAN WORD FOR FIRST FLOWER AFTER THE RAINS MONTE XANIC WAS A MERE HOBBY FOR HANS BACKHOFF THE GRANDSON OF A GERMAN IMMIGRANT UNTIL HE MET MR FERNANDEZ THE SON OF A SPANISH IMMIGRANT WITH THREE PARTNERS THEY INVESTED NEARLY 1 MILLION TO BUILD THEIR WINERY FOUR YEARS LATER THE PREMIUM UPSTART PRODUCES 25000 CASES ANNUALLY WITH A BOTTLE OF CHENIN COLOMBARD SELLING FOR 8 AND A CABERNET SAUVIGNON FOR 26 VERY GOOD WINES ARE MADE AT HOME SAYS MR FERNANDEZ WHO HEADS THE MEXICAN VINTNERS ASSOCIATION IF INVESTORS FOUND THEM MORE WINERIES COULD START MEANTIME COMMERCIAL VINTERS ARE CONSOLIDATING THEIR MARKETING EFFORTS AFTER MEXICO OPENED ITS BORDERS TO IMPORTS FOUR YEARS AGO HALF OF MEXICO'S BATTERED VINTNERS SHUT DOWN TO FIGHT BACK BAJA WINE TASTINGS ARE UP A GRADUATE PROGRAM IN ENOLOGY THE STUDY OF WINEGROWING IS IN THE WORKS AT A NEARBY UNIVERSITY AND A WINE AND FOOD FESTIVAL HELD HERE IN AUGUST GROWS SPLASHIER EACH YEAR BUT EACH MEXICAN ON AVERAGE DRINKS A MERE LITER OF WINE ANNUALLY COMPARED WITH SEVEN LITERS 18 GALLONS PER CAPITA IN THE US AND MORE THAN 70 LITERS 18 GALLONS IN FRANCE THUS IN THE NAME OF FREE TRADE MEXICAN VINTNERS WANT A CALIFORNIA LAW TOPPLED THAT PROHIBITS VISITING CALIFORNIANS FROM IMPORTING MORE THAN ONE LITER OF LIQUOR FROM MEXICO WHILE NO ONE CONFUSES MEXICAN VINO WITH MOUTON ROTHSCHILD THE WINES ARE GAINING A FOLLOWING FOR EXAMPLE SANTO TOMAS WHOSE YOUNG PRESIDENT STUDIED AT FRANCE'S ENOLOGY SCHOOL IN MONTPELIER NOW EXPORTS 10 OF ITS WINES AND WANTS TO RAISE THAT TO 50 LA CETTO WITH A 50 MEXICAN MARKETSHARE ALSO EXPORTS ABOUT 10 OF ITS WINES JEANMICHEL LACAZE A FRENCHMAN WHO IMPORTS WINES FOR US DISTRIBUTION JUST BEGAN OFFERING SANTO TOMAS AND CAVAS VALMAR WINES TO ITALIAN FRENCH AND MEXICAN RESTAURANTS ALONG THE EASTERN SEABOARD PEOPLE ARE QUITE SURPRISED WHEN YOU TALK TO THEM ABOUT WINE FROM MEXICO SAYS MR LACAZE THEY THINK ABOUT BEER AND TEQUILA 9303250073 930325 RESEARCH FAILS TO LINK AIR TO SICKBUILDING AILMENTS BOSTON A GROUP OF RESEARCHERS FOUND THAT INCREASED VENTILATION IN BUILDINGS DIDN'T REDUCE REPORTED INCIDENCES OF THE SOCALLED SICKBUILDING SYNDROME AMONG OFFICE WORKERS THE STUDY IN THE LATEST ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE CALLS INTO QUESTION THE CONVENTIONAL RESPONSE TO SUCH MALADIES AS EYE NOSE AND THROAT IRRITATIONS HEADACHES AND FATIGUE IN OFFICE WORKERS THE CANADIAN RESEARCHERS FROM MCGILL UNIVERSITY IN MONTREAL SAID THAT IT HAS BEEN HYPOTHESIZED FOR A LONG TIME THAT THESE SYMPTOMS RESULT FROM INCREASED CONCENTRATION OF CONTAMINANTS FROM INDOOR SOURCES IN AN ACCOMPANYING EDITORIAL THE MEDICAL JOURNAL WARNED WE DON'T KNOW THE CAUSE OF THE SICKBUILDING SYNDROME BUT THE FINDINGS OF THE RESEARCHERS MAY HAVE ECONOMIC IMPLICATIONS THE AMERICAN SOCIETY OF HEATING REFRIGERATION AND AIR CONDITIONING ENGINEERS IS IN THE EARLY STAGES OF REVISING ITS RECOMMENDED STANDARDS FOR BUILDING VENTILATION IN 1981 THE GROUP RECOMMENDED AN INCREASE IN THE MINIMAL SUPPLY OF OUTDOOR AIR TO 10 CUBIC FEET FROM FIVE CUBIC FEET PER MINUTE PER PERSON IN 1989 IT RAISED THE MINIMUM TO 20 CUBIC FEET THE SCIENTISTS SAID ANY PROPOSED BOOST IN VENTILATION WILL INCREASE ENERGY COSTS AND COULD ALSO EXCEED THE CAPACITY OF HEATING VENTILATION AND AIRCONDITIONING SYSTEMS IN MANY BUILDINGS 9303250072 930325 US SET TO UNVEIL PLAN IN BID TO SAVE SONGBIRD AND JOBS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL GOVERNMENT IS SET TO UNVEIL A NEW APPROACH TO THE STORMY CONFLICT BETWEEN WILDLIFE PROTECTION AND JOBS ENVIRONMENTAL AND GOVERNMENT SOURCES SAID THE INTERIOR DEPARTMENT WILL ANNOUNCE TODAY THAT IT INTENDS TO LIST THE CALIFORNIA GNATCATCHER A TINY SONGBIRD THAT LIVES IN THE ARID SAGE AND SCRUB ALONG THE SOUTHERN CALIFORNIA COASTLINE AS THREATENED UNDER THE ENDANGERED SPECIES ACT BUT IN AN UNPRECEDENTED MOVE THE GOVERNMENT WILL ESSENTIALLY EXEMPT OWNERS OF THE BIRD'S HABITAT MOSTLY REAL ESTATE DEVELOPERS FROM THE LAW'S ABSOLUTE PROHIBITIONS ON KILLING ANY MEMBERS OF A PROTECTED SPECIES AS LONG AS THE LANDOWNERS AGREE TO PRESERVE SUBSTANTIAL PARTS OF THEIR GNATCATCHER HABITAT THE GNATCATCHER HAS BEEN A CLOSELY WATCHED TEST CASE OF THE CLINTON ADMINISTRATION'S THEORIES ON HOW TO BALANCE CONSERVATION AND ECONOMY THE BIRD IS IN TROUBLE BECAUSE 90 OF ITS HABITAT HAS BEEN PLOWED UNDER FOR HOUSING TRACTS OVER THE PAST FEW DECADES MUCH OF WHAT'S LEFT IS PRIME SOUTHERN CALIFORNIA REAL ESTATE OWNED BY MAJOR DEVELOPERS ENVIRONMENTALISTS HAVE ARGUED THAT THE GNATCATCHER WILL DISAPPEAR IF NOT PROTECTED BUT DEVELOPERS SAY THE USUAL ENDANGERED SPECIES ACT PROCEDURES FOR SAVING THE BIRD WOULD COST TENS OF THOUSANDS OF JOBS AND BILLIONS OF DOLLARS IN ECONOMIC ACTIVITY THE INTERIOR DEPARTMENT'S PLAN FOR THE BIRD IS AN ATTEMPT TO DEFUSE THAT CLASH BY PREVENTING THE BIRD'S EXTINCTION WITHOUT TOTALLY SHUTTING DOWN BUILDING ALONG THE CALIFORNIA COAST IT IS MEANT TO PROMOTE A CONCEPT KNOWN AS ECOSYSTEM PLANNING THIS APPROACH CHANGES THE FOCUS OF WILDLIFE PROTECTION FROM SAVING INDIVIDUAL SPECIES TO ONE THAT SEEKS TO PRESERVE ENOUGH HABITAT TO GUARANTEE THE SURVIVAL OF ALL SPECIES THAT DEPEND ON THAT HABITAT THE GNATCATCHER PLAN IS SPECIFICALLY AIMED AT ENCOURAGING A TWOYEAROLD EFFORT COORDINATED BY CALIFORNIA'S DEPARTMENT OF RESOURCES TO APPLY ECOSYSTEM PLANNING TO THE GNATCATCHER BATTLE UNDER THE STATE PLAN DEVELOPERS HAVE VOLUNTARILY PUT ABOUT 200000 ACRES OFF LIMITS WHILE SCIENTISTS MAP OUT CRUCIAL GNATCATCHER HABITAT DEVELOPERS WILL BE ALLOWED TO BUILD IN SOME GNATCATCHER HABITAT AS LONG AS THEY AGREE TO PRESERVE CRUCIAL AREAS DEVELOPERS THAT DON'T COOPERATE WILL STILL BE SUBJECT TO THE FULL ARRAY OF ENDANGERED SPECIES ACT BANS ON DAMAGING HABITAT SOME ENVIRONMENTALISTS WORRY THAT THE CALIFORNIA PLAN DOESN'T HAVE ENOUGH TEETH LARGELY BECAUSE IT RELIES ON LOCAL AUTHORITIES SUCH AS COUNTY PLANNING COMMISSIONS TO ENFORCE IT BUT INTERIOR SECRETARY BRUCE BABBITT HAS SAID THAT ECOSYSTEM PLANNING COULD SERVE AS A MODEL FOR RESOLVING OTHER BITTER CONSERVATION BATTLES 9303250071 930325 BUSINESS BRIEF MOBIL CORP PLAN TO SELL STAKE INVOLVES NEW ZEALAND SYNTHETIC FUELS MOBIL CORP SAID IT WILL SELL ITS 25 STAKE IN NEW ZEALAND SYNTHETIC FUELS CORP FOR 73 MILLION TO FLETCHER CHALLENGE LTD OF NEW ZEALAND IN ADDITION TO THE CASH MOBIL WILL CONTINUE TO RECEIVE ROYALTY PAYMENTS FOR THE NATURALGASTOGASOLINE PLANT AND RETAIN ACCESS TO 40 OF SYNTHETIC FUEL'S GASOLINE PRODUCTION MOBIL WAS AN ORIGINAL SHAREHOLDER IN NEW ZEALAND SYNTHETIC FUELS AND SUPPLIED TECHNOLOGICAL SUPPORT AND PLANT MANAGEMENT SERVICES SINCE THE EARLY 1980S THE INVESTMENT WAS SOLD BECAUSE IT WAS AN EXCELLENT VALUE FOR SHAREHOLDERS SAID MOBIL OF FAIRFAX VA 9303250069 930325 VOTE ON SOCIAL SECURITY MOVES SENATE TOWARD SUPPORT OF CLINTON FISCAL GOALS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE DEMOCRATS MANEUVERED PAST THE VOLATILE ISSUE OF SOCIAL SECURITY CLEARING THE LAST SIGNIFICANT OBSTACLE TO APPROVAL OF THE OUTLINES OF PRESIDENT CLINTON'S ECONOMIC PACKAGE WITH ONLY FOUR DEMOCRATIC DEFECTIONS PARTY LEADERS TURNED BACK A REPUBLICAN MOVE TO STRIP A PROPOSED SOCIAL SECURITY TAX INCREASE FROM THE ADMINISTRATION'S FIVEYEAR BUDGET PLAN THE 5247 VOTE CLEARED THE WAY FOR PASSAGE TODAY OF THE BUDGET RESOLUTION WHICH IS PROJECTED TO CUT THE FEDERAL BUDGET DEFICIT SOME 502 BILLION OVER THE NEXT FIVE YEARS THROUGH SPENDING CUTS AND TAX INCREASES THE DEBATE OVER MR CLINTON'S PROPOSED TAX INCREASE ON THE MOST AFFLUENT SOCIAL SECURITY RECIPIENTS REPRESENTED A TURNABOUT OF PARTISAN ROLES DEMOCRATS WHO HAVE USED SOCIAL SECURITY TO BLUDGEON REPUBLICANS FOR YEARS FACED ACCUSATIONS THAT THEIR TAX PROPOSAL REPRESENTED A DECLARATION OF WAR ON AMERICA'S ELDERLY AS GOP SEN CHARLES GRASSLEY OF IOWA PUT IT BUT DEMOCRATS DISMISSED THE ATTACKS BY CASTING THEM AS A PLOY INTENDED TO CRIPPLE THE POPULAR NEW PRESIDENT'S PROGRAM THIS AMENDMENT IS A TORPEDO AIMED AT PRESIDENT CLINTON SAID SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE MR MITCHELL CONTINUED TO HOLD HIS DEMOCRATIC MAJORITY TOGETHER THROUGH A STRING OF AMENDMENT FIGHTS AMONG THEM WAS THE LONGAWAITED GOP ALTERNATIVE BUDGET OFFERED BY MINORITY LEADER ROBERT DOLE OF KANSAS AND SEN PETE DOMENICI OF NEW MEXICO WHICH WOULD JETTISON ALL OF THE PRESIDENT'S PROPOSED TAX AND SPENDING INCREASES AND REDUCE THE DEFICIT 460 BILLION OVER FIVE YEARS THROUGH SPENDING CUTS ALONE IT WAS DEFEATED 5742 WITH ALABAMA SEN RICHARD SHELBY THE LONE DEMOCRAT TO SUPPORT IT ASSISTING THE EFFORT TO FEND OFF THE REPUBLICANS ON SOCIAL SECURITY WAS A NONBINDING RESOLUTION OFFERED BY TWO DEMOCRATS EXPRESSING THE SENATE'S WISH TO AVOID A SOCIAL SECURITY TAX INCREASE OR AT LEAST TO RAISE THE INCOME THRESHOLD FOR THOSE SUBJECTED TO IT THE WHITE HOUSE PROPOSES TO RAISE TO 85 FROM 50 THE AMOUNT OF SOCIAL SECURITY BENEFITS SUBJECT TO TAXATION FOR INDIVIDUALS WITH INCOMES OF 25000 AND COUPLES WITH INCOMES OF 32000 THE RESOLUTION BY SENS JAMES EXON OF NEBRASKA AND FRANK LAUTENBERG OF NEW JERSEY WHICH WAS APPROVED 6732 WOULD RESTRICT THE INCREASE TO INDIVIDUALS WITH INCOMES OF 32000 AND COUPLES WITH INCOMES OF 40000 IF ENACTED BY THE FINANCE COMMITTEE THE CHANGE WOULD REDUCE THE REVENUE RAISED BY THE SOCIAL SECURITY PROPOSAL TO ABOUT 27 BILLION OVER FIVE YEARS FROM THE ADMINISTRATION'S PROJECTED 32 BILLION SOME DEMOCRATS ACKNOWLEDGED THAT THE RESOLUTION WAS PRINCIPALLY INTENDED TO PROTECT THEMSELVES POLITICALLY COVER IS THE OPERATIVE WORD SAID FINANCE COMMITTEE MEMBER JOHN BREAUX D LA THOUGH THE EXONLAUTENBERG PROPOSAL REPRESENTS A FALLBACK POSITION FOR FUTURE NEGOTIATIONS ON THE TAX BILL WHITE HOUSE AIDES PORTRAYED ITS SIGNIFICANCE AS MINIMAL AND SOME COMMITTEE MEMBERS PREDICTED MR CLINTON'S SOCIAL SECURITY PROVISION WOULD SURVIVE AS PROPOSED AFTER COMPLETING THE BUDGET RESOLUTION THE SENATE PLANS IMMEDIATELY TO TAKE UP THE PRESIDENT'S PROPOSED 163 BILLION ECONOMIC STIMULUS PACKAGE CONSERVATIVE DEMOCRATS ARE SEEKING TO TRIM OR DELAY PART OF THE PACKAGE AND COULD PREVAIL IF REPUBLICANS JOIN THEM THOUGH GOP LEADERSHIP AIDES DENY ANY INTENTION OF MOUNTING A FILIBUSTER TO BLOCK THE BILL SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD D WVA WARNED OF THE POSSIBILITY YESTERDAY AND SAID IT WOULD BE EXTREMELY DIFFICULT TO OVERCOME MR CLINTON CONCEDED THAT HIS STIMULUS PACKAGE MAY FACE A FILIBUSTER IN THE SENATE THEY HAVE 43 REPUBLICAN SENATORS AND THEY MAY BE ABLE TO HOLD 41 OF THEM HE SAID IN AN INTERVIEW ON CBS'S 48 HOURS ADDING THAT HIS OPPONENTS CAN HOLD UP ACTION IF THEY GET MORE THAN 40 BUT HE SAID THE PUBLIC WOULD JUST BE OUTRAGED IF THE EFFORT TO CREATE 500000 NEW JOBS WERE SLOWED 9303250068 930325 BUSINESS BRIEF UNITED TECHNOLOGIES CORP PRATT & WHITNEY TO BUILD JET ENGINES FOR SAUDI ARABIA PRATT & WHITNEY A UNIT OF UNITED TECHNOLOGIES CORP WON A CONTRACT TO BUILD FIGHTER JET ENGINES FOR THE SAUDI AIR FORCE VALUED AT 600 MILLION IT WAS A RARE BIT OF FAVORABLE NEWS FOR PRATT & WHITNEY WHICH HAS BEEN BESET BY DECLINING DEFENSE SPENDING AND SLUMPING COMMERCIAL AVIATION SALES BUT IT WON'T CHANGE THE UNIT'S PLAN TO CUT 7600 JOBS BY OCTOBER AND AN ADDITIONAL 3000 BY THE END OF 1994 THE SPOKESMAN FOR PRATT BASED IN HARTFORD CONN SAID NEWS OF THE CONTRACT SHOULDN'T STIR FALSE EXPECTATIONS SAUDI ARABIA CHOSE PRATT TO BUILD 154 ENGINES AND SPARES FOR 72 F15 JETS THAT THE SAUDIS ARE PURCHASING FROM THE US THE CONTRACT WAS ANNOUNCED BY CONNECTICUT DEMOCRATIC SENATORS CHRISTOPHER DODD AND JOSEPH LIEBERMAN WORK ON THE ENGINES WOULD BEGIN IN THE LAST THREE MONTHS OF 1994 AND CONTINUE FOR THE NEXT SIX YEARS 9303250067 930325 ENTERPRISE SOFTDRINK MIDDLEMEN CLAIM BOTTLER SEWED A MARKET UP NEW YORK DISTRIBUTORS SUE TO UPHOLD CONTRACT RIGHTS TO PRICING TERRITORIES BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS BUSINESSES STRIVE TO BECOME MORE EFFICIENT MIDDLEMEN IN MANY INDUSTRIES FEEL THEY ARE BEING SQUEEZED OUT BUT IN BEVERAGE DISTRIBUTION AT LEAST SOME OF THE LAST INDEPENDENTS AREN'T GOING QUIETLY TO FIGHT BACK AGAINST BOTTLING ENTREPRENEUR HAROLD HONICKMAN MORE THAN 130 CURRENT AND FORMER NEW YORK AREA DISTRIBUTORS OF CANADA DRY AND COORS PRODUCTS HAVE JOINED IN A LAWSUIT FIRST FILED IN FEDERAL COURT IN BROOKLYN THREE YEARS AGO THE ACTION WAS SUBSTANTIALLY EXPANDED RECENTLY THE CASE LARGELY TURNS ON A CRUCIAL ISSUE FOR THOUSANDS OF SMALL BUSINESSES THE RIGHTS OF DISTRIBUTORS ESPECIALLY TO SET PRICES CLAIMING THAT THEIR REGION IS ONE OF THE LAST BASTIONS OF INDEPENDENT SOFTDRINK DISTRIBUTION THE PLAINTIFFS SAY THEY ARE FIGHTING FOR SURVIVAL IN HUNDREDS OF PAGES OF CHARGES THEY ACCUSE SOME THREEDOZEN DEFENDANTS MAINLY BEVERAGE COMPANIES AND INDIVIDUALS ASSOCIATED WITH THEM OF A CONSPIRACY TO VIOLATE FEDERAL ANTITRUST LAWS THE KEY DEFENDANT IS THE 59YEAROLD MR HONICKMAN BEST KNOWN AS ONE OF THE BIGGEST PEPSI COLA BOTTLERS IN THE US THE PLAINTIFFS ALLEGE THAT MR HONICKMAN HAS BEEN TRYING TO DRIVE THEM OUT OF BUSINESS THEY SAY HE ALONG WITH COCACOLA BOTTLING CO OF NEW YORK WANTS TO MONOPOLIZE THE MARKET UNLAWFULLY ACCORDING TO THE SUIT MR HONICKMAN'S COMPANIES AND COKE NEW YORK CONTROL MORE THAN 95 OF THE NEW YORK REGION'S MIXER AND SOFTDRINK MARKET THE COMPLEX SUIT ALSO CONTAINS RACKETEERING AND FRAUD CHARGES AGAINST MR HONICKMAN AND COMPANIES HE CONTROLS WE THINK WE WILL PREVAIL ON ALL THE ALLEGATIONS MR HONICKMAN SAYS FROM HIS PENNSAUKEN NJ OFFICE ONE OF HIS NEW YORK LAWYERS JONATHAN J LERNER DERIDES THE THICK SUIT AS A MAGNUM ODIOUS HE SAYS OF THE PLAINTIFFS WHEN BOTH THE FACTS AND THE LAW ARE AGAINST YOU YOU JUST POUND THE TABLE AND SUE HALF THE WESTERN WORLD THE CHARGES AGAINST COKE NEW YORK AND ITS PARENT ARE PATENTLY ABSURD SAYS A SPOKESMAN FOR THE GREENWICH CONN COMPANY WHICH IS 53OWNED BY COCACOLA CO STILL US MAGISTRATE JUDGE ZACHARY W CARTER RULED THIS MONTH THAT THE DISTRIBUTORS ARE RESELLERS OF CANADA DRY PRODUCTS AND NOT CONSIGNEES HE SAID THEY HAD ESTABLISHED A LIKELIHOOD OF SUCCESS ON AT LEAST ONE PRICEFIXING CLAIM INVOLVING ALLEGED ATTEMPTS BY CANADA DRY BOTTLING CO OF NEW YORK TO DICTATE DISTRIBUTORS' RESALE PRICES BOTH SIDES ARE APPEALING PARTS OF THE RULING THIS ISN'T THE ONLY INSTANCE IN WHICH MR HONICKMAN HAS AROUSED CONTROVERSY IN SETTLING A 1989 ANTITRUST LAWSUIT BY THE FEDERAL TRADE COMMISSION MR HONICKMAN AGREED TO SEEK FTC APPROVAL BEFORE BUYING MORE SOFTDRINK BOTTLING ASSETS IN THE NEW YORK REGION AFTER THE FTC BLOCKED MOST OF HIS PLANS TO BUY CERTAIN SEVENUP BOTTLING ASSETS HE TWICE SUED THE AGENCY HE LOST THE FIRST SUIT BUT IS APPEALING THE SECOND STILL AWAITS A RULING MEANWHILE HE PAID NEARLY 2 MILLION LAST YEAR TO SETTLE CHARGES THAT HE HAD FAILED TO GIVE THE GOVERNMENT A REQUIRED NOTICE OF HIS ACQUISITION PLANS NOW LARGELY BECAUSE OF MR HONICKMAN'S BUSINESS PRACTICES THE DISGRUNTLED CANADA DRY DISTRIBUTORS SUING THE ENTREPRENEUR SHOULD BE PUT ON THE ENDANGERED SPECIES' LIST SAYS KENNETH F MCCALLION ONE OF THEIR ATTORNEYS ONE WHO AGREES IS JOSEPH PICARELLO THE ONLY DISTRIBUTOR TO FILE A DETAILED AFFIDAVIT IN THE COURT CASE SIX YEARS AGO MR PICARELLO BECAME A DISTRIBUTOR FOR CANADA DRY NEW YORK ONE OF THE COMPANIES CONTROLLED BY MR HONICKMAN WITH A CHUNK OF MANHATTAN AS HIS TERRITORY MR PICARELLO AT FIRST ENJOYED SPARKLING SALES HE SAYS THEN HE RAN INTO FIERCE COMPETITION FROM AN UNEXPECTED QUARTER THE BOTTLER ITSELF MR PICARELLO SAYS CANADA DRY NEW YORK USING SALARIED TRUCK DRIVERS BEGAN SELLING DIRECT TO CUSTOMERS TAKEN AWAY FROM ME THROUGH LOWER PRICES HE CLAIMS HIS COMPANY HAS LOST 40 OF ITS VOLUME IN THE LAST THREE YEARS MR PICARELLO TRACES HIS TROUBLES TO HIS PRICING HE SAYS HE TRIED TO SET HIS OWN RESALE PRICES WHICH OFTEN WERE HIGHER THAN SUGGESTED RESALE PRICES BUT SOMETIMES WERE LOWER DEPENDING ON VOLUME IF YOU SELL AT THE SUGGESTED PRICES YOU CAN'T MAKE A LIVING HE MAINTAINS THE SUIT ALLEGES THAT THE BOTTLER INCREASINGLY USED SANCTIONS SUCH AS WITHHOLDING DISCOUNTED PRODUCTS DURING PROMOTIONS IN AN EFFORT TO FORCE ITS DISTRIBUTORS TO COMPLY WITH THE SUGGESTED PRICES THEY SAY THE BOTTLER EVEN BEGAN REQUIRING THEM TO USE CERTAIN INVOICES WITH PREPRINTED RESALE PRICES MR PICARELLO ADDS THAT HE LOST MANY CUSTOMERS WHEN THE BOTTLER TOLD THEM I HAD BEEN OVERCHARGING' THEM MR HONICKMAN'S LAWYERS DENY THAT DISTRIBUTORS COULDN'T MAKE A LIVING FOLLOWING SUGGESTED PRICES AS FOR THE INVOICES IT WAS PERFECTLY APPROPRIATE TO MAKE KNOWN THE SUGGESTED PRICES MR LERNER SAYS ESPECIALLY DURING PROMOTIONAL PERIODS THE DISTRIBUTORS DIDN'T WANT CUSTOMERS TO KNOW THAT THE DISTRIBUTORS WERE POCKETING PROMOTIONAL DISCOUNTS INSTEAD OF PASSING THEM ALONG HE SAYS ANOTHER LAWYER FOR THE DEFENSE PETER E GREENE SAYS THAT IF SALES HAVE DROPPED FOR SOME DISTRIBUTORS THAT'S ONLY BECAUSE THEY WERE PRICEGOUGING AND GOT CAUGHT ALL MR HONICKMAN IS TRYING TO DO IS SELL MORE PRODUCT MR GREENE SAYS HE BELIEVES THE WAY TO SELL MORE PRODUCT IS TO LOWER PRICES TO THE STORES BESIDES ALLEGING ILLEGAL PRICEFIXING THE PLAINTIFFS ACCUSE MR HONICKMAN'S COMPANIES OF SOCALLED TYING ARRANGEMENTS A TYPE OF ANTITRUST VIOLATION THE DISTRIBUTORS COMPLAIN THAT THEY WERE REQUIRED TO JOIN A CERTAIN TEAMSTERS LOCAL TO LEASE TRUCKS AT INFLATED PRICES AND TO BUY OVERPRICED INSURANCE MR HONICKMAN'S LAWYERS REPLY THAT THE PRACTICES CITED WERE LEGAL AND DIDN'T UNDULY INFLATE THE DISTRIBUTORS' COSTS THE DISTRIBUTORS COMPLAIN THAT IN PRACTICE THOUGH NOT ON PAPER THEY HAD FEW RIGHTS EVEN BEFORE CANADA DRY NEW YORK REFUSED TO RENEW CONTRACTS COVERING THEIR OPERATIONS THAT EXPIRED IN 1990 THOMAS GIOLI JR AN OAKDALE NY DISTRIBUTOR SAYS OF MR HONICKMAN HE WANTS YOU TO PAY 200000 JUST TO BUY A JOB WITH NO RIGHTS HE ADDS DAILY LIFE NOW IS MISERABLE THERE ARE CONSTANT BATTLES MR HONICKMAN'S LAWYERS DENY THE DISTRIBUTORS' CLAIMS THAT THEY HAD ACQUIRED CERTAIN PERPETUAL RIGHTS LASTING BEYOND THE CONTRACT SUCH AS EXCLUSIVE TERRITORIES THE CONTRACT IS DEAD AND BURIED MR LERNER SAYS THOUGH THE BOTTLER HAS CONTINUED TO SELL TO THE DISTRIBUTORS HE ADDS THAT'S NOT TO SAY THAT THE DISTRIBUTORS HAVE ANY RIGHTS 9303250066 930325 SPORTS SKI FIRMS RIDING LIFT PREDICT BIG JUMP BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS A DOZEN DANCERS SWADDLED IN HEAVY PARKAS GYRATE TO POUNDING MUSIC UNDER BRIGHT LIGHTS AT THE ANNUAL SKI INDUSTRIES AMERICA BUYER'S SHOW HERE AMAZINGLY THE PERFORMERS IN THIS SKIING FASHION SHOW DON'T EVEN BREAK A SWEAT IT DOESN'T SEEM AS IF ANYBODY IS SWEATING IN THE SKIEQUIPMENT INDUSTRY THESE DAYS AND THAT'S A WELCOME CHANGE AFTER FIVE ANXIETYRIDDEN YEARS OF DECLINING SALES LAST YEAR THE INDUSTRY'S LUCK CHANGED BIG TIME WITH HEAVY SNOWS ENCOURAGING MORE SKIING AND A RESURGENT ECONOMY LOOSENING PURSESTRINGS SUDDENLY IT SEEMED AS IF THE ENTIRE SKIING FRATERNITY DECIDED THAT THEIR OLD SKIS HAD WORN OUT SALES OF SKI EQUIPMENT AND CLOTHING JUMPED ABOUT 20 IN 1992 AND THE BLEEDING IN THE INDUSTRY BOTH BY RETAILERS AND MANUFACTURERS IS AT LEAST IN A HIATUS SKIEQUIPMENT MAKERS FOR EXAMPLE INCURRED ONLY 77 MILLION IN LOSSES STEMMING FROM RETAILERS' BANKRUPTCIES DOWN FROM 89 MILLION THE YEAR BEFORE BETTER YET MANUFACTURERS AT THE SHOW WERE GLEEFULLY PREDICTING 20 TO 100 INCREASES IN SALES FOR 1993 POTENTIALLY 1993 WILL BE THE GREATEST YEAR OF ALL TIME FOR SKI SALES SAYS TIM KOHL PRESIDENT OF RESEARCH DYNAMICS INC A SUN VALLEY IDAHO SKI MAKER HE'S PREDICTING HIS SALES WILL RISE 40 THIS YEAR AFTER A SIMILAR JUMP IN 1992 HE ISN'T ALONE IN HIS OPTIMISM KLAUS OBERMEYER PRESIDENT OF OBERMEYER LTD A MAKER OF SKI CLOTHING IN ASPEN COLO SAYS HIS COMPANY'S SALES MAY DOUBLE THIS YEAR TECNICA USA A UNIT OF ITALIAN BOOT MAKER TECNICA SPA IS PREDICTING A 30 TO 35 INCREASE HELLYHANSEN US INC'S SALES OF NORWEGIAN SKI CLOTHING WERE UP ABOUT 22 IN 1992 AND THE COMPANY EXPECTS A SIMILAR INCREASE THIS YEAR THE TURNAROUND WAS A BLESSING FOR THE INDUSTRY WHICH WATCHED HELPLESSLY AS EQUIPMENT AND CLOTHING SALES FELL TO 482 MILLION IN 1991 FROM 591 MILLION IN 1987 AN 18 DECLINE MISERLY SNOWFALL GOT THE BLAME FOR KEEPING MANY SKIERS HOME AND THE RECESSION LEFT A LOT OF THE REST CLAMPED TO THEIR OLD BOARDS AS A RESULT THE NUMBER OF US SKI BOOT POLE AND BINDING MAKERS AND DISTRIBUTORS SLIPPED TO 122 IN 1992 FROM 185 IN 1985 AS WITH MOST RECOVERIES THIS ONE ISN'T UNIVERSAL SKIEQUIPMENT SALES IN PARTS OF CALIFORNIA CONTINUED TO DROP BECAUSE OF THAT STATE'S ECONOMIC WOES FURTHER MANUFACTURERS EXPECT RETAILERS WHOSE ILLTIMED INVENTORY BUILDUP IN THE BOOMING 1980S WAS A REAL DRAG ON PRICES IN THE PAST COUPLE OF YEARS TO BE MORE CAUTIOUS AS THEY REBUILD INVENTORIES THIS TIME AND WITH ABOUT 30 FEWER STORES IN THE SKI BUSINESS NOW THAN 10 YEARS AGO THE BUYERS HAVE DWINDLED WE ARE NEVER AGAIN GOING TO ATTAIN THE LOFTY GROWTH OF THE PAST SAYS HAP KLOPP A BOARD MEMBER OF HELLYHANSEN USA AN IMPORTING UNIT OF HELLYHANSEN AS SKI CLOTHING BUT AS A RESULT OF LAST YEAR'S PICKUP IN RETAIL SALES INVENTORIES AT SKI SHOPS ARE AS LOW AS THEY'VE BEEN IN YEARS MR KOHL OF RESEARCH DYNAMICS ESTIMATES THAT SKIS IN MANUFACTURERS' INVENTORIES DECLINED TO ABOUT 200000 PAIRS IN 1992 FROM TWICE THAT THE YEAR BEFORE EVERYBODY'S FIGURED OUT THAT INVENTORIES ARE A KILLER HE SAYS NO ONE IN THE INDUSTRY DENIES THAT THERE WAS SOME LUCK INVOLVED IN THE RECENT UPSURGE NAMELY HEAVY SNOWS SNOW MAKES GENIUSES OF EVERYONE SAYS CLAY FREEMAN VICE PRESIDENT SALES AND MARKETING OF ROFFE INC A SEATTLE SKICLOTHING MAKER MR OBERMEYER AGREES IF THERE'S NO SNOW IT'S LIKE TRYING TO SELL BOATS NEXT TO A LAKE WITH NO WATER SO DESPITE ITS RECENT SUCCESS THE CHASTENED INDUSTRY ISN'T TAKING ITS GOOD FORTUNE FOR GRANTED BUYERS NOW SPREAD THEIR PURCHASES OUT OVER THE YEAR RATHER THAN BUYING EVERYTHING BETWEEN MARCH AND MAY AS IN THE PAST THEY USED TO BUY MORE UPFRONT AND IF IT DIDN'T SNOW THEY'D GET BURNED SAYS MR FREEMAN SKI BOOT AND CLOTHING MAKERS HAVE CHANGED THEIR HABITS TOO CLOTHING MAKERS HAVE NARROWED THEIR LINES AND FOCUSED ON PARTICULAR SEGMENTS OF THE BUSINESS ROFFE WHICH SAW ITS SALES FALL 30 IN THE PAST FIVE YEARS CUT ITS LINE BY 40 PULLING OUT OF WINTER STREET CLOTHES AND REFOCUSING ON SKI WEAR HELLYHANSEN HAS DEVELOPED ONE INTERNATIONAL LINE REPLACING ITS EARLIER CATALOG OF US JAPANESE EUROPEAN AND CANADIAN LINES AND MAKERS OF SKIS AND BOOTS ARE SPREADING THEIR PRODUCTION OVER THE YEAR TO BETTER MATCH THE NEW ORDER STREAM MANUFACTURERS HOPE TO SOLIDIFY THEIR GAINS BY INTRODUCING THE KIND OF EYECATCHING NEW PRODUCTS THAT SPARK BUYING BOOMS THE KIND OF PRODUCTS SOME SAY HAVE BEEN LACKING IN RECENT YEARS TO SOME EXTENT PEOPLE DIDN'T HAVE MUCH MONEY TO INVEST IN RETOOLING TO PUT NEW PRODUCTS INTO PRODUCTION SAYS BOB SODEN PRESIDENT OF THE SALOMON NORTH AMERICA INC UNIT OF FRENCH SKI MAKER SALOMON SA INSTEAD HE SAYS THEY'VE BEEN TINKERING WITH OLD LINES HOWEVER TINKERING DOESN'T BRING IN HORDES OF BUYERS NEW TECHNOLOGY DRIVES NEW BUSINESS SAYS DAVE GOODE PRESIDENT OF GOODE SKI TECHNOLOGIES WATERFORD MICH WE HAVEN'T SHOWN CUSTOMERS ENOUGH REASON TO BUY SOMETHING NEW THAT MAY BE CHANGING HOWEVER THERE WERE SOME INTRIGUING NEW DEVELOPMENTS ON DISPLAY AT THE SKI AMERICA SHOW INCLUDING MR GOODE'S THIN LIGHTWEIGHT SKI POLE THE FIRST MAJOR INNOVATION IN SKI POLES SINCE THE ALUMINUM POLE REPLACED OTHER METAL AND BAMBOO POLES IN THE LATE 1950S GOODE POLES MADE OF GRAPHITE OR OTHER COMPOSITE FIBERS WON'T BEND OUT OF SHAPE AND THEY ABSORB SHOCK BETTER THAN ALUMINUM HE SAYS PREDICTING THAT THE ALUMINUM POLE WILL BE PASSE IN FOUR YEARS IN SKIS THE HOTTEST CURRENT PRODUCT IS POWDER SKIS COMPANIES HAVE BEEN MAKING SLIGHTLY WIDER SKIS FOR FLOATING THROUGH FRESH POWDER SINCE THE 1970S BUT ATOMICSKIFABRIK OF AUSTRIA BROUGHT A 5 1/2INCH SKI TO THE US TWO YEARS AGO SOLD OUT IMMEDIATELY AND BEGAN A REVOLUTION IN POWDER SKIING NOW SEVERAL COMPANIES ARE OFFERING THE WIDE SHORT SKIS LAST YEAR SKIS LACROIX SA A HIGHEND FRENCH SKI MAKER SHIPPED 500 PAIRS OF ITS 550 POWDER SKIS TO ITS JOINTVENTURE PARTNER LACROIX NORTH AMERICA BOULDER COLO ONE SKI SHOP IN PARK CITY UTAH SNATCHED AND SOLD ALL OF THEM AND TOOK ORDERS FOR 18 MORE IT DOESN'T HAVE YET SNOWRUNNER USA INC A US DISTRIBUTOR IS MARKETING A BOOT MADE BY DALBELLO SPORT SRL OF ITALY THAT COMES WITH A SHORT SKI ATTACHMENT AN INLINE SKATE ATTACHMENT AND A RUBBER SOLE THAT ATTACHES TO A SNOWBOARD IT'S A LINE EXTENSION OF THE ORIGINAL SNOWRUNNER WHICH IS PERMANENTLY ATTACHED TO THE SHORT SKI THAT HAS BEEN A HOT SELLER IN EUROPE FOR MORE THAN A DECADE BUT THE INDUSTRY CAN'T TAKE TOO MUCH COMFORT IN THESE NEW PRODUCTS AND A COUPLE OF GOOD YEARS IN SALES ITS OWN MANUFACTURERS WARN WHATEVER THE SKI SHOPS BUY AND TAKE HOME TO SELL TO THEIR CUSTOMERS WILL HAVE TO COMPETE WITH A SLEW OF NEW OUTDOORSPORTS EQUIPMENT INCLUDING INLINE SKATES AND MOUNTAIN BIKES SAYS GORDON MCFADDEN PRESIDENT OF HELLYHANSEN USA WHERE THERE USED TO BE THREE OUTDOOR ACTIVITIES THERE ARE NOW 26 HE SAYS 9303250065 930325 WHAT'S NEWS WORLDWIDE YELTSIN FAILED TO GAIN A COMPROMISE IN A POWER STRUGGLE WITH PARLIAMENT THE RUSSIAN PRESIDENT FINALLY RELEASED A DECREE PUTTING FORWARD HIS DEMAND FOR A REFERENDUM ON HIS LEADERSHIP BUT IT MADE NO MENTION OF THE EMERGENCY RULE HE CALLED FOR IN A WEEKEND ADDRESS THE EFFORT AT CONCILIATION FAILED TO ELICIT AN ACCORD WHEN YELTSIN MET WITH THE HEAD OF PARLIAMENT TO TRY TO RESOLVE THEIR DISPUTE THE FULL LEGISLATURE IS STILL SET TO MEET TO CONSIDER YELTSIN'S IMPEACHMENT CLINTON MET WITH RUSSIA'S FOREIGN MINISTER TO REVIEW PLANS FOR A SUMMIT AND DISCUSS US AID THE RUSSIAN OFFICIAL SAID HE WAS HEARTENED BY THE TALKS REFUGEES WERE SHELLED AS UN HELICOPTERS ATTEMPTED A BOSNIA RESCUE UN OFFICIALS WERE FURIOUS AT THE ATTACK WHICH KILLED ONE PERSON AND INJURED 21 AND SAID BOSNIAN SERBS BROKE PROMISES TO ALLOW EVACUATIONS FROM SREBRENICA BOSNIAN SERB LEADER KARADZIC BLAMED BOSNIA'S GOVERNMENT FOR THE SHELLING SAYING IT WANTED TO DISCREDIT SERB FORCES SEPARATELY GERMANY AGREED TO JOIN THE US EFFORT TO PARACHUTE AID INTO BOSNIA CLINTON SAID THE US MIGHT GIVE BOSNIAN GOVERNMENT FORCES THE MEANS TO AT LEAST DEFEND THEMSELVES IF THEY SIGN A PEACE ACCORD AND SERB FORCES DON'T FEDERAL AGENTS ARRESTED ANOTHER SUSPECT IN THE WORLD TRADE CENTER BOMBING INVESTIGATORS DESCRIBED THE FORMER NEW YORK TAXI DRIVER MAHMUD ABOUHALIMA AS THE MASTERMIND OF THE FEB 26 ATTACK THAT KILLED SIX HE WAS ARRESTED IN EGYPT IN A RECENT CRACKDOWN ON ISLAMIC FUNDAMENTALISTS AND FLOWN TO THE US YESTERDAY SOUTH AFRICA ADMITTED IT DEVELOPED NUCLEAR WEAPONS IN THE '70S AND '80S BUT SAID IT DISMANTLED THE SIX BOMBS IT HAD BUILT PRESIDENT DE KLERK CONFIRMED PRETORIA'S LONGSUSPECTED NUCLEAR CAPABILITIES IN A SPEECH TO PARLIAMENT A NUCLEAR WATCHDOG AGENCY SAID IT WAS SENDING INSPECTORS TO VERIFY THAT THE BOMBS WERE DISMANTLED A PANEL WAS APPOINTED TO EXAMINE STATE DEPARTMENT CONDUCT IN THE EARLY 1980S WHEN A UN COMMISSION SAYS ATROCITIES WERE COMMITTED BY USBACKED FORCES IN EL SALVADOR THE COMMISSION'S RECENT REPORT LED TO COMPLAINTS FROM CONGRESS THAT THE REAGAN ADMINISTRATION LIED ABOUT THE HUMAN RIGHTS SITUATION DURING EL SALVADOR'S CIVIL WAR SCIENTISTS HAVE REFUTED THE BELIEF THAT THE VIRUS THAT CAUSES AIDS LIES DORMANT IN THE BODY FOR YEARS BEFORE THE FULLBLOWN DISEASE MANIFESTS ITSELF A STUDY PUBLISHED IN THE BRITISH JOURNAL NATURE SAYS THE VIRUS INSTEAD MULTIPLIES FURIOUSLY IN LYMPH NODES AND RELATED ORGANS BOLSTERING ARGUMENTS FOR EARLIER TREATMENT A MICHIGAN SCHOOL DISTRICT SHUT DOWN 10 WEEKS EARLY BECAUSE IT WAS UNABLE TO RAISE LOCAL TAXES OR GET MORE STATE AID AND UNWILLING TO CUT STAFF AND PROGRAMS SHARPLY TO CLOSE A BUDGET GAP TEACHERS IN THE 2300STUDENT KALKASKA DISTRICT 225 MILES NORTHWEST OF DETROIT INSTRUCTED STUDENTS ON HOW TO CONTINUE STUDIES ON THEIR OWN A SENATE PANEL APPROVED A BILL TO GUARANTEE ABORTION RIGHTS SHOULD THE SUPREME COURT OVERTURN THE ROE VS WADE DECISION LEGALIZING THE PROCEDURE BUT OPPONENTS SAID THEY WOULD FIGHT TO CHANGE THE BILL ON THE SENATE FLOOR TO OFFER STATES LEEWAY TO IMPOSE RESTRICTIONS SUCH AS A WAITING PERIOD OR TOUGHER PARENTALNOTIFICATION REQUIREMENTS EZER WEIZMAN WAS ELECTED ISRAEL'S SEVENTH PRESIDENT AND BENJAMIN NETANYAHU APPEARED SET TO SUCCEED YITZHAK SHAMIR AS HEAD OF THE CONSERVATIVE LIKUD PARTY HIS ELECTION WOULD PUT HIM IN POSITION TO CHALLENGE PRIME MINISTER RABIN IN ELECTIONS SET FOR 1996 SEPARATELY THREE PALESTINIANS WERE KILLED IN CLASHES WITH ISRAELI TROOPS THE INTERIOR DEPARTMENT IS EXPECTED TO ANNOUNCE TODAY IT IS LISTING A TINY BIRD THE CALIFORNIA GNATCATCHER AS A THREATENED SPECIES BUT IN A NEW APPROACH TO THE CONFLICT BETWEEN WILDLIFE PROTECTION AND JOBS IT WON'T ENFORCE A STRICT BAN ON KILLING INDIVIDUAL BIRDS IF OWNERS OF THE BIRDS' HABITAT SET ASIDE PRESERVES FRANCE'S JUSTICE MINISTER SAID PRESIDENT MITTERRAND HAS NO INTENTION OF RESIGNING BEFORE THE END OF HIS TERM IN 1995 DESPITE THE ROUT OF HIS SOCIALISTS IN LEGISLATIVE ELECTIONS SUNDAY CONSERVATIVE LEADERS NOW APPEAR SPLIT ON SEEKING AN EARLY PRESIDENTIAL VOTE DIED JOHN HERSEY 78 PULITZER PRIZEWINNING AUTHOR OF HIROSHIMA AND A BELL FOR ADANO IN KEY WEST FLA OF CANCER 9303250064 930325 BUSINESS BRIEF ROCHESTER COMMUNITY SAVINGS BANK THRIFT SEEKS WAYS TO REDUCE NONPERFORMING ASSET LOAD ROCHESTER COMMUNITY SAVINGS BANK SAID IT'S EXPLORING OPTIONS TO REDUCE ITS HEFTY LOAD OF NONPERFORMING ASSETS WHICH IT CALLED A SIGNIFICANT DRAG ON EARNINGS THE THRIFT WHICH IS BASED IN ROCHESTER NY SAID IT'S CONSIDERING LIQUIDATING SOME OF ITS 2788 MILLION IN NONPERFORMING ASSETS WHICH REPRESENTS 75 OF ASSETS AND IT MAY SELL CONVERTIBLE PREFERRED STOCK TO RAISE CAPITAL IN PART TO FUND SPECIAL RESERVES TO COVER THE SALE OF NONPERFORMING ASSETS ROCHESTER COMMUNITY HAS HIRED BEAR STEARNS & CO TO ADVISE IT THE COMPANY MADE THE ANNOUNCEMENT IN RELEASING ITS FISCAL FIRSTQUARTER EARNINGS ROCHESTER COMMUNITY SAID NET INCOME ROSE 22 TO 25 MILLION OR 18 CENTS A SHARE FOR THE QUARTER ENDED FEB 28 COMPARED WITH NET OF 2 MILLION OR 15 CENTS A SHARE IN THE YEAREARLIER PERIOD 9303250062 930325 INTERNATIONAL YELTSIN BACKS AWAY FROM THREAT TO SEIZE AUTHORITARIAN POWERS NO COMPROMISE IS REACHED AS OPPONENTS STILL SEEK TO IMPEACH PRESIDENT BY LAURIE HAYS AND ELISABETH RUBINFIEN STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN BACKED AWAY FROM HIS DECLARATION THAT HE WAS GOING TO SEIZE AUTHORITARIAN POWERS BUT HIS FOES PUSHED AHEAD WITH PLANS TO OUST HIM THE STRUGGLE BETWEEN THE PRESIDENT AND THE ANTIYELTSIN PARLIAMENT APPEARED TO REMAIN DEADLOCKED IN A DECREE ISSUED YESTERDAY MR YELTSIN FORMALLY PUT FORWARD HIS DEMAND FOR AN APRIL 25 NATIONAL VOTE OF CONFIDENCE IN HIS PRESIDENCY HE ALSO ASKED FOR THE GOVERNMENT TO SUBMIT A LIST OF TOP PRIORITY ECONOMIC MEASURES INCLUDING A SYSTEM FOR ESTABLISHING PRIVATE LAND OWNERSHIP BUT THE TEXT OMITTED ANY REFERENCE TO EMERGENCY RULE THE PUBLIC REFERENDUM NOW SEEMS TO BE ACCEPTABLE TO MANY OF MR YELTSIN'S OPPONENTS INCLUDING THE CONSTITUTIONAL COURT BUT HIS TROUBLES ARE FAR FROM OVER THE PARLIAMENT STILL CALLED FOR A MEETING TOMORROW OF THE CONGRESS OF PEOPLE'S DEPUTIES TO CONSIDER IMPEACHMENT OR A CHANGE IN THE GOVERNMENT MR YELTSIN HAS SAID THROUGHOUT THE CRISIS THAT HE WILL IGNORE A VOTE TO IMPEACH HIM AND WILL AWAIT THE RESULTS OF APRIL'S NATIONAL REFERENDUM MANY DEPUTIES DOUBT THERE ARE ENOUGH ANTIYELTSIN VOTES TO REACH THE TWOTHIRDS TOTAL NEEDED FOR IMPEACHMENT BUT CHANGING HIS CABINET AND THUS WEAKENING HIS CONTROL OVER THE REFORMS MAY BE POSSIBLE WE CAN CHANGE THE GOVERNMENT NOW NO PROBLEM SAID ANDREI FYODOROV AN AIDE TO VICE PRESIDENT ALEXANDER RUTSKOI THE MAN MOST LIKELY TO BECOME PRESIDENT SHOULD MR YELTSIN BE PUSHED OUT FOR NOW NEITHER MR YELTSIN NOR HIS FOES SEEM TO HAVE THE POWER TO DEFEAT THE OTHER THEY HAVE ALSO FAILED TO REACH A COMPROMISE THEIR LATEST ATTEMPT AT A KREMLIN MEETING YESTERDAY BETWEEN MR YELTSIN PARLIAMENT SPEAKER RUSLAN KHASBULATOV HIS CHIEF FOE AND VALERY ZORKIN HEAD OF THE CONSTITUTIONAL COURT PRODUCED NO APPARENT RESULTS MR KHASBULATOV REPORTED TO THE PARLIAMENT THAT THE 90MINUTE MEETING HAD BEEN A USEFUL TALK A NECESSARY TALK BUT MR KHASBULATOV DIDN'T CANCEL THE EARLIER DECISION TO CONVENE THE CONGRESS RUSSIA'S HIGHEST LAWMAKING BODY MR KHASBULATOV ALSO SAID THAT THE LEGITIMACY OF PRESIDENTIAL POWER AND OF THE GOVERNMENT HAS SHRUNK BECAUSE OF THE CONSTITUTIONAL COURT'S RULING TUESDAY AGAINST MR YELTSIN THE COURT RULED THAT MR YELTSIN IN HIS SATURDAY NIGHT SPEECH DEMANDING A REFERENDUM APRIL 25 AND SAYING HE WOULD TAKE AUTHORITARIAN POWERS IN THE INTERVENING WEEKS WAS WRONG TO TRY TO SIDESTEP THE LEGISLATURE BUT THE COURT ALSO GAVE MR YELTSIN A PARTIAL VICTORY BY FINDING THAT HE WAS WITHIN HIS RIGHTS TO CALL FOR A VOTE OF CONFIDENCE LEGISLATORS OPPOSED TO MR YELTSIN WEREN'T ARGUING WITH THAT FINDING YESTERDAY MR YELTSIN DIDN'T SPEAK PUBLICLY YESTERDAY BUT IN RESPONSE TO MR KHASBULATOV'S ATTACK THE PRESIDENT'S SPOKESMAN VYACHASLAV KOSTIKOV SAID IT IS BECOMING MORE OBVIOUS THAT THE GOAL OF THE LEADERSHIP OF THE PARLIAMENT AND THE CONGRESS IS NOT TO STABILIZE THE SITUATION IN THE COUNTRY BUT TO USE ANY MEANS TO REMOVE THE LAWFULLY ELECTED PRESIDENT AND OPEN THE WAY TO POWER FOR THE FORCES OF REVENGE AND TOTALITARIAN RESTORATION HE ALSO ACCUSED MR KASHBULATOV OF COMING TO YESTERDAY'S KREMLIN MEETING WITH A LIST OF DEMANDS HE PRESENTED IN A RUDE FORM BY DROPPING HIS THREAT OF SEIZING EXTRAORDINARY POWERS MR YELTSIN APPARENTLY INTENDED TO APPEAR CONCILIATORY BUT SOME OPPONENTS DERIDED HIS TACTICS THE PRESIDENT SHOULD BE ASHAMED OF HIMSELF FOR SCARING RUSSIA AND THE WORLD SO MUCH SAID IONA ANDRONOV A DEPUTY WHO OPPOSES MR YELTSIN OVERALL MR YELTSIN'S SUPPORTERS BELIEVE HE HAS WON A VICTORY BY GAINING THE RIGHT TO HOLD HIS VOTE OF CONFIDENCE IF MR YELTSIN WINS SUCH A VOTE AND MOST THINK HE WILL THAT STILL WOULD BE NO GUARANTEE OF AN END TO THE STALEMATE BUT HE WOULD IMPLICITLY RECEIVE SUPPORT FOR HIS VERSION OF A NEW CONSTITUTION THAT CONSTITUTION WOULD CONTAIN NEW PROCEDURES FOR ELECTING THE CONGRESS REPLACING THE PRESENT BODY WHICH WAS ELECTED IN 1990 UNDER THE BREZHNEVERA CONSTITUTION MR YELTSIN BELIEVES THAT IF ELECTIONS ARE HELD THE NEW LEGISLATORS WOULD BE MORE SUPPORTIVE OF HIM AND OF ECONOMIC AND POLITICAL REFORM HIS SUPPORTERS PREDICT THAT ALL THE IMPEACHMENT TALK WILL MAKE VOTERS TURN OUT IN LARGE NUMBERS FOR THE REFERENDUM AFTER WINNING THEY SAY THE PRESIDENT WILL HAVE THE POLITICAL STRENGTH TO MOVE AHEAD WITH HIS REFORMS THERE IS SERIOUS APATHY ON THE PART OF THE POPULATION SAID SERGEI STANKEVICH AN ADVISER TO THE PRESIDENT BUT IF SUCH A DRAMATIC ISSUE IS ON THE BALLOT AS THE DESTINY OF THE PRESIDENT PEOPLE WILL COME 9303250061 930325 HEARD ON THE STREET ALLSTATE COULD GET A BIG HAND FOR ITS IPO BY JOHN R DORFMAN AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL ALLSTATE WANTS TO PUT ITSELF IN GOOD HANDS YOURS THE NORTHBROOK ILL INSURER IS ABOUT TO LAUNCH THE BIGGEST INITIAL PUBLIC STOCK OFFERING EVER BY A US COMPANY IN CONTRAST TO THE GROUSING OFTEN HEARD ABOUT NEW STOCK ISSUES PORTFOLIO MANAGERS SO FAR ARE LOOKING KINDLY ON THIS ONE THE PREVAILING FEELING IS THAT SEARS ROEBUCK WHICH CURRENTLY OWNS ALLSTATE OUTRIGHT IS GIVING THE PUBLIC AN ATTRACTIVE PRICE TO MAKE SURE THE MAMMOTH OFFERING AT LEAST 785 MILLION SHARES MOVES THE OFFERING IS SCHEDULED FOR THE NEXT FEW MONTHS PERHAPS IN MAY THE PUBLIC WILL GET A CHANCE TO BUY ABOUT 20 OF ALLSTATE WHICH IS THE NATION'S SECONDLARGEST CAR AND HOME INSURER STATE FARM THE LARGEST IS A MUTUAL COMPANY OWNED BY ITS POLICYHOLDERS WITH THE OFFERING PRICE TENTATIVELY PEGGED AT 26 THE PROCEEDS WOULD COME TO ROUGHLY 204 BILLION IN A WAY THE VERY SIZE OF THIS OFFERING COULD WORK IN INVESTORS' FAVOR WHEN YOU GET TO THAT SIZE IT BETTER BE PRICED LOW ENOUGH SO THAT THE MARKET CAN ABSORB IT SAYS CARL LINDBERG A MANAGING DIRECTOR AT BRANDYWINE ASSET MANAGEMENT IN WILMINGTON DEL THE PREVAILING VIEWPOINT AMONG PROFESSIONAL INVESTORS SEEMS TO BE THAT THE STOCK WOULD BE A BARGAIN AT 26 IT'S NOT LIKE FINDING A DIAMOND BUT IT'S LIKE FINDING MAYBE A SAPPHIRE SAYS ROB FRIEDMAN A MONEY MANAGER AT MUTUAL SERIES FUNDS IN SHORT HILLS NJ SOME PEOPLE SAY SEARS COULD PROBABLY GET A BIT MORE THAN 26 IF IT WANTED TO PUSH BUT THEY SPECULATE THAT SEARS MAY BE CONTENT TO SETTLE FOR 26 TO CREATE A CADRE OF SATISFIED STOCKHOLDERS AND ENHANCE SEARS'S OWN STOCK SEARS AFTER ALL WILL CONTINUE TO OWN AT LEAST 80 OF ALLSTATE AND MIGHT WANT TO SELL MORE SHARES LATER ALLSTATE'S 1992 EARNINGS WERE BATTERED BY HURRICANE ANDREW BUT SOME ANALYSTS EXCLUDE THE EFFECTS OF ANDREW IN ANALYZING THE NEW STOCK AFTER ALL ANDREW WAS BY FAR THE WORST US HURRICANE EVER IN DOLLAR DAMAGE THE POTENTIAL FOR UPSIDE GREATLY EXCEEDS THE POTENTIAL FOR RISK SAYS CHARLES RONSON AN ANALYST AT BALESTRA CAPITAL AND PUBLISHER OF THE IPO VALUE MONITOR HE LIKES THE PLANNED INITIAL PUBLIC OFFERING OR IPO MR RONSON ESTIMATES THAT ALLSTATE HAD OPERATING EARNINGS OF 239 A SHARE IN 1992 EXCLUDING THE EFFECTS OF ANDREW CAPITAL GAINS AND LOSSES AND AN ACCOUNTINGRELATED CHARGE ASSUMING AN OFFERING PRICE OF 24 1/2 THE FIGURE OF 26 IN THE PRELIMINARY PROSPECTUS WAS A TENTATIVE MAXIMUM MR RONSON SAYS ALLSTATE'S P/E RATIO WOULD BE JUST A BIT ABOVE 10 TIMES REPORTED OPERATING EARNINGS THE P/E IS A STOCK'S PRICE DIVIDED BY PERSHARE EARNINGS USUALLY FOR THE PREVIOUS FOUR QUARTERS ACCORDING TO FACTSET DATA SYSTEMS THE AVERAGE STOCK ON THE NEW YORK STOCK EXCHANGE CURRENTLY COMMANDS A P/E OF MORE THAN 18 SO MR RONSON VIEWS ALLSTATE'S ESTIMATED P/E AS INDICATING A REAL BARGAIN MANY PROFESSIONAL INVESTORS SAY THE STOCK WOULD BE A BARGAIN AT 26 IT'S NOT LIKE FINDING A DIAMOND BUT IT'S LIKE FINDING MAYBE A SAPPHIRE SAYS ROB FRIEDMAN A MONEY MANAGER AT MUTUAL SERIES FUNDS IN SHORT HILLS NJ ALLSTATE'S COMBINED RATIO WAS 1046 IN 1991 DOWN FROM 1071 IN 1990 IN CATASTROPHEPLAGUED 1992 IT SOARED TO 1199 MR RONSON THINKS ALLSTATE CAN IMPROVE ON THE 1991 FIGURE THROUGH COSTCUTTING HE ESTIMATES THEREFORE THAT 1993 EARNINGS WILL BE AROUND 265 A SHARE THUS AT 24 1/2 ALLSTATE STOCK WOULD BE SELLING AT JUST 92 TIMES MR RONSON'S ESTIMATE OF 1993 EARNINGS I THINK IT COULD BE A VERY INTERESTING PUBLIC COMPANY SAYS WILLIAM W DYER DIRECTOR OF RESEARCH AT CENTURY SHARES TRUST A MUTUAL FUND THAT OWNS MAINLY INSURANCE SHARES SOME PEOPLE SELLING STOCK ARE CONCERNED ONLY ABOUT GETTING THE TOP DOLLAR OTHERS WANT TO HAVE HAPPY INVESTORS I WOULD THINK SEARS WOULD BE IN THE LATTER CAMP I WOULD THINK SEARS WANTS TO SELL MORE OF ALLSTATE INTO THE PUBLIC MARKET OVER TIME HE HASN'T YET MADE UP HIS MIND WHETHER TO BUY THE STOCK IN THE OFFERING MR LINDBERG OF BRANDYWINE SAYS HE PLANS TO TAKE A CLOSE LOOK AT THE OFFERING THE TENTATIVE OFFERING PRICE IS WITHIN THE PARAMETERS HE LOOKS FOR AS A BARGAINHUNTING VALUE MANAGER HE SAYS LIKE MANY PEOPLE MR LINDBERG IS COUNTING ON PROPERTYANDCASUALTY INSURERS TO RAISE PREMIUM RATES THEY SIMPLY CAN'T CONTINUE TO RUN SUCH HIGH COMBINED RATIOS HE SAYS ESPECIALLY NOW THAT INVESTMENT INCOME HAS DECLINED AS BOND YIELDS HAVE FALLEN IF THE ALLSTATE OFFERING IS PRICED AT 26 A SHARE OR BELOW INVESTORS WILL SNAP UP THE SHARES SAYS DAVID ANTHONY ANALYST AT FOXPITT KELTON THE CHEAPEST CAR INSURANCE STOCK HE FOLLOWS MERCURY GENERAL TRADES AT 10 TIMES OPERATING EARNINGS MOST GO FOR HIGHER MULTIPLES ACCORDING TO FIREMARK STATISTICAL REVIEW THE AVERAGE PROPERTYANDCASUALTY COMPANY DEALING IN PERSONAL LINES RECENTLY SOLD FOR ABOUT 17 TIMES 1992 OPERATING EARNINGS AND ABOUT 13 TIMES ESTIMATED 1993 OPERATING EARNINGS ALLSTATE LOOKS CHEAPER ON BOTH COUNTS FIREMARK SAYS THE AVERAGE STOCK IN THE GROUP SELLS FOR 19 TIMES BOOK VALUE CORPORATE ASSETS MINUS LIABILITIES PER SHARE THE ALLSTATE OFFERING WOULD BE ABOUT COMPARABLE ON THAT BASIS NOT ALL SIGNS ARE POSITIVE MONEY MANAGERS AND ANALYSTS FRET ABOUT REGULATION PARTICULARLY OF CAR INSURANCE FORCED PREMIUMRATE ROLLBACKS ARE ALWAYS A THREAT THEY PLAY WELL WITH VOTERS AND CAN PLAY HAVOC WITH INSURERS' PROFITS THESE GUYS PERSONALLINES INSURERS HAVE LITTLE OR NO PRICING STRENGTH SAYS PAUL LLOYD OF CORESTATES INVESTMENT ADVISERS IN PHILADELPHIA PEOPLE TEND TO DRIVE LESS DURING RECESSIONS MORE IN TIMES OF STRONG ECONOMIC GROWTH ACCIDENT RATES RESPOND ACCORDINGLY THAT FACTOR IS NEGATIVE FOR ALLSTATE AND OTHER CAR INSURERS POINTS OUT MILTON MEIGS OF DUFF & PHELPS CREDIT RATING CO MR MEIGS ALSO HAS A BIGGER CONCERN WHEN YOU LOOK AT THE IMPACT OF ANDREW ON ALLSTATE IN FLORIDA YOU ASK WHERE IS THE REINSURANCE HE SAYS REINSURANCE IS A TECHNIQUE BY WHICH INSURANCE COMPANIES LAY OFF PART OF THEIR RISK ONTO OTHER COMPANIES IN EFFECT INSURERS' INSURANCE IF ALLSTATE TRIES TO AVOID FUTURE BIG HITS BY PURCHASING MORE REINSURANCE HE SAYS IT WON'T COME CHEAP THE QUESTION IS CAN THEY GET ADEQUATE REINSURANCE WITHOUT KILLING EARNINGS DOUGLAS RABORN A DELRAY BEACH FLA MONEY MANAGER SAYS PEOPLE WHO LIKE ALLSTATE MIGHT DO BETTER SIMPLY TO BUY SEARS SHARES AS HE SEES IT THEY WOULD GET THE MERCHANDISE OPERATION FOR A SONG HE HIMSELF OWNS SEARS PERCS A SPECIAL CLASS OF CONVERTIBLE PREFERRED STOCK BUT DESPITE ALL THESE QUESTIONS MOST PEOPLE SEEM FAVORABLY DISPOSED TOWARD THE OFFERING SO FAR IF SEARS DOESN'T TRY TO RAISE THE PRICE ABOVE 26 MR FRIEDMAN OF THE MUTUAL SERIES FUNDS SAYS ALLSTATE HAS BEEN UNDERAPPRECIATED BECAUSE IT HAS BEEN HIDDEN WITHIN SEARS INSURANCE ANALYSTS WILL LOOK AT THIS AND SAY THIS IS VERY CLEAN WHAT YOU SEE IS WHAT YOU GET THEY DON'T MANAGE IE MANIPULATE EARNINGS MOREOVER MR FRIEDMAN SAYS ALLSTATE HAS A REPUTATION FOR ACCURACY IN ESTIMATING THE CLAIMS IT IS LIKELY TO INCUR IN ITS NORMAL LINES OF HOMEOWNERS AND AUTO INSURANCE AND IT HAS BEEN CUTTING EXPENSES RIGHT AND LEFT SINCE 1990 9303250060 930325 BUSINESS BRIEF RADIUS INC FIRM EXPECTS OPERATING LOSS FOR FISCAL SECOND QUARTER RADIUS INC PROJECTED AN OPERATING LOSS OF MORE THAN 13 MILLION FOR ITS FISCAL SECOND QUARTER ENDING WEDNESDAY RADIUS DIDN'T SPECIFY THE AMOUNT OF THE EXPECTED OPERATING LOSS BUT SAID IT WOULD EXCEED THE OPERATING LOSS OF 13 MILLION OR 10 CENTS A SHARE IT REPORTED FOR THE FIRST QUARTER ENDED DEC 31 IN THAT QUARTER A 600000 GAIN FROM AN ACCOUNTING ADJUSTMENT RESULTED IN A NET LOSS 713000 OR FIVE CENTS A SHARE THE COMPUTER PRODUCTS COMPANY BASED IN SAN JOSE CALIF CITED SLUGGISH DEMAND PARTICULARLY IN EUROPE IN THE YEAREARLIER SECOND QUARTER IT EARNED 23 MILLION OR 16 CENTS A SHARE ON SALES OF 429 MILLION 9303250059 930325 BUSINESS BRIEF PEOPLE'S BANK FIRSTQUARTER PROFIT SOARED HELPED BY ONETIME GAINS PEOPLE'S BANK BRIDGEPORT CONN SAID IT EXPECTS TO REPORT FIRSTQUARTER EARNINGS SOARED TO 26 MILLION TO 28 MILLION OR 80 CENTS TO 85 CENTS A SHARE LARGELY ON IMPROVED OPERATING RESULTS AND SOME ONETIME GAINS PEOPLE'S BANK SHARES ROSE 125 YESTERDAY ON THE NEWS CLOSING AT 9 UP 1 IN NATIONAL OVERTHECOUNTER TRADING THE BANK SAID THE EARNINGS ESTIMATE REFLECTS ADOPTION OF A NEW ACCOUNTING RULE FOR INCOME TAXES WHICH WILL BOOST EARNINGS BY AT LEAST 15 MILLION THE ESTIMATE ALSO REFLECTS IMPROVED CORE OPERATING INCOME AND A GAIN FROM THE SALE OF 200 MILLION IN CONSUMER LOANS IN THE FIRST QUARTER OF 1992 PEOPLE'S BANK REPORTED EARNINGS OF 181000 OR ONE CENT A SHARE NET INCOME FOR THE YEAR WAS 7 MILLION OR 22 CENTS A SHARE 9303250058 930325 MERRILL LYNCH RESHUFFLES ITS TOP RANKS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO THE NATION'S LARGEST BROKERAGE FIRM ANNOUNCED A MANAGEMENT SHAKEUP AS IT PREPARES TO FACE THE CHALLENGE OF NEWLY FORMED BROKERAGE GIANT SMITH BARNEY SHEARSON INC IN ITS THIRD MAJOR REORGANIZATION IN LESS THAN THREE YEARS MERRILL CREATED AN OFFICE OF THE CHAIRMAN AND OFFICE OF THE CHIEF EXECUTIVE IN A BID TO BOLSTER ITS CLIENT BUSINESS IN THE PROCESS MERRILL DEMOTED BARRY S FRIEDBERG AND THOMAS H PATRICK SENIOR EXECUTIVES WHO RAN INVESTMENT BANKING AND STOCK OPERATIONS TWO OF THE MOST IMPORTANT PROFIT CENTERS AT THE BIG BROKERAGE FIRM THE SHAKEUP AT MERRILL STUNNED WALL STREET EXECUTIVES BECAUSE IT COMES ON THE HEELS OF TWO CONSECUTIVE YEARS OF RECORD PROFIT IN 1992 MERRILL'S NET INCOME OF 894 MILLION WAS THE MOST EVER REPORTED BY A PUBLICLY TRADED SECURITIES FIRM BUT MERRILL HAS HAD SOME HIGH PROFILE FLAPS WITH BIG CLIENTS LATE LAST YEAR MERRILL ABANDONED MARRIOTT CORP A TOP INVESTMENTBANKING CLIENT AFTER A REVOLT BY MERRILL'S BOND TRADERS AND SALESPEOPLE AGAINST A CONTROVERSIAL RESTRUCTURING OF THE HOTEL COMPANY MARRIOTT WAS A LONGTIME CLIENT OF MR FRIEDBERG'S DANIEL P TULLY MERRILL'S PRESIDENT AND CHIEF EXECUTIVE BRUSHED ASIDE SUGGESTIONS THAT MESSRS FRIEDBERG AND PATRICK WERE DEMOTED OR THAT THE REORGANIZATION WAS TIED TO CLIENT PROBLEMS IN AN INTERVIEW HE CALLED SUCH TALK TOTALLY INACCURATE AND HOGWASH MR TULLY SAID MESSRS FRIEDBERG AND PATRICK WILL BE FREE TO DO WHAT THEY DO EXTREMELY WELL AND THAT IS TO HELP OUR CLIENTS SOLVE THEIR PROBLEMS THE PURPOSE OF THE MANAGEMENT SHUFFLE HE SAID WAS TO RECOGNIZE THE MODERN WORLD BY FOCUSING MORE ON CLIENTS HE ADDED PEOPLE DON'T COME TO MERRILL FOR ITS MANAGERIAL EXPERTISE THEY COME BECAUSE OF ITS CLIENT ORIENTATION SOME ANALYSTS SPECULATED THAT MERRILL'S MOVE TO BEEF UP ITS CLIENT RELATIONSHIPS IS A BID TO HEAD OFF THE CHALLENGE THAT GIANT SMITH BARNEY SHEARSON WILL POSE IN THE NEXT FEW YEARS TO ITS BROKERAGE OPERATIONS SMITH BARNEY SHEARSON CREATED BY JOINING PRIMERICA CORP'S SMITH BARNEY UNIT WITH SHEARSON LEHMAN BROTHERS INC'S BROKERAGE OPERATION WILL HAVE 10500 BROKERS NEARLY MATCHING MERRILL'S 11500 SAID A MERRILL SPOKESMAN WE BEGAN WORKING ON THIS WHOLE MANAGEMENT REALIGNMENT LONG BEFORE THE SMITH BARNEY SHEARSON ANNOUNCEMENT THE TIMING IS TRULY COINCIDENTAL MERRILL'S NEW SIXMEMBER OFFICE OF THE CHAIRMAN WILL DEVELOP AND BUILD CORPORATE AND INSTITUTIONAL CLIENT RELATIONSHIPS TWO OF THE OFFICE'S MEMBERS WILL BE MR FRIEDBERG AND MR PATRICK IN HIS NEW ROLE MR FRIEDBERG 52 YEARS OLD WILL ASSURE THAT THE FIRM'S FULL CAPABILITIES ARE DELIVERED TO CORPORATE CLIENTS MR FRIEDBERG HAD RUN MERRILL'S INVESTMENT BANKING GROUP SINCE 1985 AN UNUSUALLY LONG TIME IN THE FASTCHANGING WORLD OF WALL STREET MR FRIEDBERG COULDN'T BE REACHED TO COMMENT MERRILL'S INVESTMENTBANKING GROUP WILL NOW BE RUN BY HERBERT M ALLISON JR WHO HAD PREVIOUSLY RUN THE FIRM'S FINANCE AND ADMINISTRATION AREA BUT MR ALLISON 49 HAS LITTLE INVESTMENTBANKING EXPERIENCE PROMPTING GRUMBLING AMONG SOME MERRILL INVESTMENT BANKERS A MERRILL SPOKESMAN SAID THAT MR ALLISON IS ONE OF THE BEST MANAGERS WE HAVE IN THE FIRM AND IS HIGHLY RESPECTED FOR HIS ORGANIZATIONAL SKILLS MR PATRICK 49 WAS REMOVED AS HEAD OF MERRILL'S STOCK TRADING AND SALES OPERATIONS AFTER LESS THAN ONE YEAR IN THE JOB IN HIS NEW ROLE HE WILL RUN MERRILL'S SPECIAL ADVISORY SERVICES GROUP WHICH PROVIDES CUSTOMIZED PROPRIETARY FINANCIAL SERVICES TO INVESTMENT BANKING CLIENTS MERRILL SAYS MR PATRICK COULDN'T BE REACHED TO COMMENT THE BIGGEST WINNER IN THE REORGANIZATION IS DAVID H KOMANSKY WHO PREVIOUSLY HAD RUN MERRILL'S BOND OPERATIONS IN HIS NEW ROLE MR KOMANSKY 53 WILL RUN BOTH THE STOCK AND BOND GROUPS INDEED MERRILL EXECUTIVES SAY MR KOMANSKY WHO ONCE RAN MERRILL'S STOCK OPERATIONS IS SHAPING UP AS A MAJOR CONTENDER TO SUCCEED MR TULLY AS PRESIDENT IN JUNE MR TULLY IS EXPECTED TO SUCCEED CHAIRMAN WILLIAM A SCHREYER WHO IS RETIRING AND RETAIN HIS CEO POST ANOTHER LIKELY CONTENDER FOR THE PRESIDENCY IS JOHN L STEFFENS WHO RUNS MERRILL'S BIG BROKERAGE OPERATIONS A POST HE HAS HELD SINCE 1985 MR STEFFENS ALONG WITH MESSRS KOMANSKY AND ALLISON WILL MAKE UP MERRILL'S NEW OFFICE OF THE CHIEF EXECUTIVE WHICH WILL MANAGE THE FIRM'S GLOBAL BUSINESSES 9303250057 930325 LAW LEGAL BEAT BATTLE FOWLER FACES LEGAL SCRUTINY FOR ROLE IN CLIENT'S FRAUD SCHEME BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A PARK AVENUE LAW FIRM FINDS ITSELF IN LEGAL HOT WATER OVER WORK IT DID FOR A MORTGAGEBROKERAGE BUSINESS THAT TURNED OUT TO BE A FRAUD SCHEME PREYING ON EASTERN EUROPEAN IMMIGRANTS A BANKRUPTCYCOURT TRUSTEE FOR THE ESTATE OF STOCKBRIDGE FUNDING CORP CLAIMS THAT THE LAW FIRM BATTLE FOWLER SHOULD BE HELD RESPONSIBLE FOR THE 33 MILLION THAT INVESTORS LOST IN THE SCHEME THE TRUSTEE DAVID KITTAY IS LIQUIDATING WHAT REMAINS OF THE DEFUNCT BROKERAGE FIRM WHOSE OWNERS PLEADED GUILTY TO DEFRAUDING HUNDREDS OF CLIENTS MR KITTAY'S LAWSUIT AGAINST BATTLE FOWLER TESTS THE EXTENT TO WHICH LAW FIRMS CAN BE HELD ACCOUNTABLE FOR ASSISTING PERHAPS UNWITTINGLY ILLEGAL SCHEMES SET UP BY CLIENTS IN THE SUIT FILED IN BANKRUPTCY COURT IN MANHATTAN MR KITTAY SAYS THE 95LAWYER FIRM AIDED AND ABETTED THE FRAUD BY AMONG OTHER THINGS DRAFTING EDITING AND SUPERVISING ILLEGAL AND FRAUDULENT ADVERTISING PLACED IN NEWSPAPERS GEARED TOWARD EASTERN EUROPEAN IMMIGRANTS BATTLE FOWLER SAYS IT WAS UNAWARE OF ANY WRONGDOING ATTORNEYS FOR THE LAW FIRM SAID BATTLE FOWLER TRIED TO ENSURE THAT THE COMPANY ABIDED BY THE LAW BUT ITS EFFORTS WERE SABOTAGED BY STOCKBRIDGE'S OWNERS EUGENE R KARCZEWSKI AND HIS SON EUGENE F GINO KARCZEWSKI THE OWNERS OF STOCKBRIDGE ARE IN PRISON AFTER PLEADING GUILTY IN 1991 TO FRAUD AND OTHER CHARGES THEY ARE COOPERATING WITH THE BANKRUPTCYCOURT TRUSTEE AS WELL AS FEDERAL PROSECUTORS AND SECURITIES AND EXCHANGE COMMISSION OFFICIALS WHO ARE CONTINUING THEIR INVESTIGATIONS OF STOCKBRIDGE BATTLE FOWLER'S ATTORNEY ARTHUR OLICK OF NEW YORK LAW FIRM ANDERSON KILL OLICK & OSHINSKY SAYS THE TRUSTEE'S SUIT IS SIMPLY A CREATIVE AND UNJUSTIFIABLE ATTEMPT TO SEARCH FOR A DEEP POCKET TO REPAY INVESTORS HE SAYS BATTLE FOWLER WAS PAID ONLY 50000 FOR THE LEGAL WORK IT DID AND IT HAS FILED A CLAIM IN BANKRUPTCY COURT FOR AN ADDITIONAL 40000 THAT IT SAYS IT IS OWED THERE'S NOT A SCINTILLA OF EVIDENCE THAT ANY OF THE LAWYERS AT BATTLE FOWLER KNEW WHAT THESE CHARACTERS WERE DOING THEY DIDN'T KNOW WHAT THESE CROOKS WERE DOING ANY MORE THAN ANYONE ELSE KNEW WHAT THESE CROOKS WERE DOING MR OLICK SAYS BUT HE ADDS EVEN IF THEY LEARNED I DON'T THINK THEY HAD A DUTY TO BLOW THE WHISTLE BATTLE FOWLER WAS SCOLDED LAST WEEK BY US BANKRUPTCY COURT JUDGE FRANCIS CONRAD FOR THE AGGRESSIVE STANCE IT HAS TAKEN IN FIGHTING THE SUIT IN AN ORDER JUDGE CONRAD SAID BATTLE FOWLER'S LAWYERS WERE ATTEMPTING TO TERRORIZE THE IMMIGRANT INVESTORS BY SENDING OUT NOTICES DEMANDING THAT THEY BRING THEIR IMMIGRATION DOCUMENTS WITH THEM FOR PRETRIAL QUESTIONING COMPLICATING THINGS FOR THE FIRM IS THE FACT THAT A LAWYER AT BATTLE FOWLER PETER LAVIGNE IS UNDER INVESTIGATION BY A FEDERAL GRAND JURY LOOKING INTO STOCKBRIDGE ACCORDING TO PAPERS FILED BY THE US ATTORNEY'S OFFICE MR LAVIGNE WHO WAS AN ASSOCIATE AT BATTLE FOWLER WHEN HE DID WORK FOR STOCKBRIDGE FROM 1989 TO 1991 NOW IS A SPECIAL COUNSEL TO THE FIRM BARRY A BOHRER AN ATTORNEY FOR MR LAVIGNE AT NEW YORK LAW FIRM MORVILLO ABRAMOWITZ GRAND IASON & SILBERBERG SAID THERE'S NO BASIS FOR CONCLUDING THAT MR LAVIGNE DID ANYTHING WRONG HERE THOMAS V GLYNN MANAGING PARTNER OF BATTLE FOWLER SAID MR LAVIGNE IS AND CONTINUES TO BE IN GOOD STANDING WITH THE FIRM THE TOTAL COST OF MEDICALMALPRACTICE CLAIMS INCURRED BY INSURERS DROPPED MORE THAN 15 BETWEEN 1985 AND 1991 ACCORDING TO A REPORT ISSUED BY THE NATIONAL INSURANCE CONSUMER ORGANIZATION A CONSUMERADVOCACY GROUP THE STUDY WHICH WAS BASED ON DATA COLLECTED BY STATE INSURANCE COMMISSIONERS FOUND THAT INSURANCE COMPANIES PAID 27 BILLION IN 1991 FOR MALPRACTICE CLAIMS DOWN FROM 32 BILLION IN 1985 THOSE ESTIMATES INCLUDE AMOUNTS THAT WERE PAID AS WELL AS MONEY SET ASIDE FOR CLAIMS THAT THEY EXPECT TO PAY DOCTORS AND HOSPITALS PAID ALMOST 49 BILLION IN INSURANCE PREMIUMS IN 1991 COMPARED WITH 27 BILLION IN 1985 THE STUDY FOUND PAUL WEILER A MALPRACTICE SPECIALIST AT HARVARD LAW SCHOOL SAID THE STUDY UNDERSTATES MALPRACTICE COSTS BECAUSE IT DOESN'T INCLUDE DATA FROM MANY HOSPITALS AND OTHER LARGE HEALTH ORGANIZATIONS THAT INSURE THEMSELVES INSTEAD OF BUYING COVERAGE FROM INSURANCE COMPANIES BUT EVEN USING HIGHER ESTIMATES MR WEILER SAID MALPRACTICE COSTS ACCOUNT FOR ONLY A SMALL PERCENTAGE OF THE 840 BILLION IN ANNUAL US HEALTH COSTS WHO'S NEWS FORMER REP GUY VANDER JAGT R MICH DEFEATED IN HIS BID FOR REELECTION LAST YEAR AFTER 26 YEARS IN CONGRESS JOINED THE WASHINGTON LAW FIRM BAKER & HOSTETLER EDWARD FELSENTHAL CONTRIBUTED TO THIS COLUMN 9303250056 930325 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH FIRM IS AWARDED CONTRACTS TOTALING OVER 200 MILLION AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WAS AWARDED CONTRACTS FOR CUSTOM TELECOMMUNICATIONS NETWORKS FROM SEVERAL MAJOR COMPANIES TOTALING MORE THAN 200 MILLION THE COMPANY SAID FORD MOTOR CO AND AMOCO CORP EACH AWARDED THREEYEAR CONTRACTS FORD'S CONTRACT IS FOR A DOMESTIC VOICE AND DATA NETWORK AND AMOCO'S IS FOR NETWORK MANAGEMENT BILLING DATA AND CARD CALLING AIR PRODUCTS & CHEMICALS INC ALLENTOWN PA GAVE AT&T A FOURYEAR CONTRACT TO SET UP A GLOBAL COMMUNICATIONS NETWORK FOR ITS LOCATIONS AND POLICY MANAGEMENT SYSTEMS CORP COLUMBIA SC AWARDED A FIVEYEAR CONTRACT FOR INTEGRATED VOICE DATA AND VIDEO COMMUNICATIONS SERVICES 9303250055 930325 MARKETING & MEDIA KIM BASINGER IS TOLD TO PAY 89 MILLION FOR BREACHING DEAL LOS ANGELES A JURY ORDERED ACTRESS KIM BASINGER TO PAY AN INDEPENDENT MOVIE PRODUCER 89 MILLION FOR RENEGING ON A PROMISE TO ACT IN A FILM ABOUT AN OBSESSED DOCTOR WHO AMPUTATES HIS FORMER LOVER'S LIMBS THE SUPERIOR COURT VERDICT WAS ONE OF THE LARGEST EVER AGAINST A HOLLYWOOD STAR FOR BACKING OUT OF A COMMITMENT TO A ROLE MS BASINGER WHO PLAYED THE CAPED CRUSADER'S GIRLFRIEND IN BATMAN ALSO FACES POSSIBLE PUNITIVE DAMAGES IN A SEPARATE PHASE OF THE TRIAL EXPECTED TO BEGIN TODAY LARGE JURY VERDICTS ARE OFTEN REDUCED ON APPEAL MS BASINGER'S LAWYER HOWARD WEITZMAN SAID THE VERDICT WAS INCONSISTENT WITH THE EVIDENCE IT HAD NO BASIS IN FACT OR REALITY IT SEEMED TO ME IT WAS A PERSONAL STATEMENT ABOUT MS BASINGER OR THE WAY HOLLYWOOD DOES BUSINESS THE ACTRESS WAS SUED AFTER SHE CHANGED HER MIND ABOUT PLAYING THE FEMALE LEAD IN THE MOVIE BOXING HELENA SHE COMPLAINED ABOUT THE CHARACTER'S PERSONALITY AND GRAPHIC SEX SCENES MAIN LINE PICTURES INC THE SMALL COMPANY THAT HAS SINCE PRODUCED THE FILM WITH ANOTHER ACTRESS SAID IT HAD COMMITMENTS FOR NEARLY 10 MILLION IN DISTRIBUTION RIGHTS WITH THE UNDERSTANDING THAT MS BASINGER WOULD STAR IN THE FILM WITH THE OTHER ACTRESS SHERILYN FENN THE PRODUCERS TOOK IN ABOUT 25 MILLION YOU DON'T SEE MANY CASES LIKE THIS BECAUSE INDEPENDENTS DON'T NORMALLY HAVE THE FIGHT IN THEM TO STAND UP TO MAJOR STARS AND STUDIOS SAID PRODUCER CARL MAZZOCONE WHO MORTGAGED HIS HOME TO MAKE THE MOVIE MAIN LINE CLAIMED MS BASINGER ENTERED INTO AN ORAL AGREEMENT TO STAR IN THE FILM IN FEBRUARY 1991 THE ACTRESS'S MAIN DEFENSE WAS THAT SHE WASN'T BOUND BECAUSE SHE HADN'T SIGNED A WRITTEN CONTRACT ENTERTAINMENT LAWYER DAVID COLDEN SAID THE CASE ISN'T LIKELY TO SET LEGAL PRECEDENT IN HOLLYWOOD IT CONCERNED A BASIC PRINCIPLE OF CONTRACT LAW IN CALIFORNIA WHICH IS THAT AN ORAL CONTRACT FOR SERVICES CAN BE BINDING IN THIS INSTANCE THE JURY SEEMED TO FIND THAT THE MATERIAL TERMS OF AN AGREEMENT WERE REACHED 9303250054 930325 BAXTER EXPECTED TO PLEAD GUILTY IN BLACKLIST CASE TENTATIVE ACCORD REACHED IN INQUIRY OF HOW FIRM ESCAPED ARAB BOYCOTT BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO BAXTER INTERNATIONAL INC AFTER WEEKS OF SENSITIVE NEGOTIATIONS WITH FEDERAL PROSECUTORS HAS TENTATIVELY AGREED TO PLEAD GUILTY IN THE CRIMINAL INQUIRY INTO HOW IT GOT OFF THE ARAB BLACKLIST ANNOUNCEMENT OF SUCH A DEAL COULD COME AS EARLY AS TODAY THE US ATTORNEY'S OFFICE HERE HAS SCHEDULED A NOON NEWS CONFERENCE ABOUT THE BAXTER MATTER PEOPLE OUTSIDE THE GOVERNMENT WHO ARE PRIVY TO DETAILS OF THE CASE SAY BAXTER AND PROSECUTORS IN RECENT DAYS REACHED THE TENTATIVE ACCORD SUCH AN AGREEMENT WOULD CONCLUDE THE THREEYEAR INQUIRY INTO WHETHER BAXTER BROKE FEDERAL LAW IN THE WAY IT LEFT THE ARAB LIST OF US COMPANIES PROHIBITED FROM DOING BUSINESS IN THE ARAB WORLD BECAUSE OF THEIR TIES TO ISRAEL US LAW PROHIBITS COOPERATING WITH THE ARAB BOYCOTT BY LATE LAST YEAR FEDERAL CRIMINAL INVESTIGATORS HAD CONCLUDED THAT BAXTER BASED IN DEERFIELD ILL AGREED TO SHIP MILLIONS OF DOLLARS OF DEEPLY DISCOUNTED HOSPITAL SUPPLIES TO SYRIA AS A BRIBE TO GET OFF THE ARAB BLACKLIST BAXTER HAD BEEN PLACED ON THE BOYCOTT LIST IN THE FIRST PLACE BECAUSE IT OWNED AN INTRAVENOUS FLUIDS PRODUCTION PLANT IN ASHDOD ISRAEL BAXTER THE WORLD'S LARGEST HOSPITAL SUPPLIER HAS INSISTED REPEATEDLY IT BROKE NO LAW IN LEAVING THE BOYCOTT ROSTER IN 1989 BUT IT'S KNOWN THAT BAXTER'S LAWYERS TYRONE C FAHNER AND VINCENT J CONNELLY HAVE BEEN ENGAGED IN DELICATE PLEA BARGAINING IN RECENT WEEKS WITH ASSISTANT US ATTORNEY MARK L ROTERT THE HEAD OF THE FEDERAL PROSECUTOR'S MAJOR CRIMES DIVISION IN CHICAGO ALSO INVOLVED IN THE TALKS IS WILLIAM JOSEPH LINKLATER THE LAWYER FOR BAXTER'S SENIOR VICE PRESIDENT AND GENERAL COUNSEL G MARSHALL ABBEY MESSRS FAHNER AND CONNELLY ARE FORMER HIGHRANKING FEDERAL PROSECUTORS IN CHICAGO AND MR FAHNER SERVED AS ILLINOIS ATTORNEY GENERAL ALL THOSE INVOLVED IN THE TALKS DIDN'T RETURN PHONE CALLS OR DECLINED TO COMMENT ABOUT PLEA DISCUSSIONS IN THE FEDERAL GRAND JURY INQUIRY ANTHONY J RUCCI A BAXTER SENIOR VICE PRESIDENT SAID YESTERDAY WE ARE HOPEFUL THERE WILL BE A RESOLUTION VERY SOON HE DECLINED TO COMMENT FURTHER BAXTER'S DIRECTORS WERE CONSULTED MORE THAN A WEEK AGO ABOUT THE POSSIBILITY OF A BAXTER GUILTY PLEA IN THE FEDERAL CASE AND SIGNED OFF ON A TENTATIVE DEAL ACCORDING TO PEOPLE FAMILIAR WITH THE INQUIRY THE DIRECTORS AS WELL DECLINED TO COMMENT ON THE CASE ONE PERSON PRIVY TO CERTAIN DETAILS OF THE DISCUSSIONS SAID THERE IS A TENTATIVE AGREEMENT THAT BAXTER WOULD PAY A SUBSTANTIAL FINE AS PART OF THE PLEA DEAL NEITHER BAXTER NOR GOVERNMENT OFFICIALS WOULD CONFIRM SUCH DETAILS ATTORNEYS WERE STILL NEGOTIATING AS LATE AS YESTERDAY BAXTER AND MR ABBEY HAVE BEEN THE FOCUS OF THE GRAND JURY INQUIRY SINCE FEBRUARY 1991 THE FEDERAL GRAND JURY HERE HAS BEEN WORKING WITH THE US ATTORNEY'S OFFICE AND FEDERAL CRIMINAL INVESTIGATORS FROM THE COMMERCE DEPARTMENT BEFORE THAT BEGINNING IN FEBRUARY 1990 THE MATTER WAS A CIVIL INVESTIGATION CONDUCTED BY THE COMMERCE DEPARTMENT ANY FINAL RESOLUTION OF THE BAXTER INQUIRY WOULD LIKELY ALSO INCLUDE A CIVIL SETTLEMENT BETWEEN THE COMPANY AND THE COMMERCE DEPARTMENT SENIOR BAXTER EXECUTIVES WERE DETERMINED TO LEAVE THE BOYCOTT LIST FOR THREE ESSENTIAL REASONS ACCORDING TO PEOPLE FAMILIAR WITH THE CASE THE COMPANY WANTED TO DO BUSINESS IN THE ARAB WORLD IT WANTED TO SEAL A JOINT VENTURE WITH NESTLE SA TO MARKET CLINICAL NUTRITIONAL PRODUCTS AND ACCORDING TO A FORMER BAXTER EXECUTIVE NESTLE OFFICIALS SAID THEY WOULD BALK IF BAXTER WAS STILL ON THE BLACKLIST THAT MULTIMILLIONDOLLAR DEAL HAS SINCE BEEN CLINCHED ALSO BAXTER SENIOR OFFICIALS ARE SAID TO HAVE BECOME OBSESSED WITH GETTING OFF THE LIST JUST TO PROVE THEY COULD DO IT BAXTER SOLD THE ISRAELI FACILITY IN 1988 THE FOLLOWING YEAR THE DAMASCUSBASED ARAB LEAGUE REMOVED THE COMPANY FROM THE BOYCOTT LIST MR ABBEY WAS THE BAXTER POINT MAN FOR NEGOTIATIONS WITH SYRIAN GOVERNMENT OFFICIALS THAT LED TO THE COMPANY'S DELISTING IN PARTICULAR HE BARGAINED OVER THE TERMS UNDER WHICH BAXTER WAS TO BUILD FOR THE SYRIANS AN INTRAVENOUS SOLUTION PLANT HOWEVER UNDER PRESSURE FROM US JEWISH GROUPS BAXTER PULLED OUT OF THAT AGREEMENT UNDER A 1977 FEDERAL LAW IT IS ILLEGAL FOR A US COMPANY TO COOPERATE WITH THE ARAB BOYCOTT OF ISRAEL IN PARTICULAR BAXTER'S PLANT SALE IN ISRAEL AS WELL AS ANY PROMISES TO REFRAIN FROM DOING BUSINESS IN ISRAEL COULD VIOLATE THE LAW BAXTER HAS LONG MAINTAINED THAT IT LEFT THE BOYCOTT LIST LEGALLY AND HAS POINTED OUT THAT IT HAS CONTINUED TO SELL PRODUCTS IN ISRAEL THROUGH A DISTRIBUTOR LAW ENFORCEMENT OFFICIALS CONCLUDED THAT THE DISCOUNTED CARGO TO SYRIA COULD BE A BRIBE UNDER THE FEDERAL FOREIGN CORRUPT PRACTICES ACT THEY BELIEVE THE CARGO WAS INTENDED TO INDUCE SYRIAN OFFICIALS TO BECOME ADVOCATES ON BAXTER'S BEHALF TO HELP THE COMPANY EXTRICATE ITSELF FROM THE BOYCOTT IN ADDITION INVESTIGATORS HAVE FOCUSED ON WHETHER BAXTER ENGAGED IN A BROAD CONSPIRACY TO VIOLATE EITHER THE ANTIBOYCOTT STATUTE OR THE CORRUPT PRACTICES LAW BEYOND THE CARGO ISSUE BAXTER IS SAID TO HAVE PAID MORE THAN 1 MILLION TO PEOPLE IN THE MIDDLE EAST PURPORTEDLY FOR ARCHITECTURAL ENGINEERING AND CONSTRUCTION SERVICES HOWEVER INVESTIGATORS HAVE BEEN LOOKING INTO WHETHER THESE PAYMENTS ALSO WERE DESIGNED TO HELP THE COMPANY GET OFF THE BOYCOTT LIST 9303250053 930325 INTERNATIONAL BRIEF PERNODRICARD SA FRENCH DRINKS GROUP POSTS 15 RISE IN 1992 NET INCOME PERNOD RICARD SA THE FRENCH DRINKS GROUP SAID 1992 NET INCOME ROSE 15 TO 11 BILLION FRENCH FRANCS 1983 MILLION FROM 956 MILLION FRANCS A YEAR EARLIER HOWEVER EXCLUDING EXCEPTIONAL ITEMS PROFIT WAS UP JUST 77 CHAIRMAN PATRICK RICARD SAID THE BOTTOM LINE DREW STRENGTH FROM AN EASING OF FINANCIAL CHARGES AS THE GROUP LIGHTENED ITS DEBT LOAD HE SAID THE RATIO OF DEBT TO EQUITY FELL TO 60 FROM 787 ON AN OPERATING LEVEL PROFIT FELL 35 TO 198 BILLION FRANCS FROM 205 BILLION FRANCS WHICH THE COMPANY ATTRIBUTED TO AN INCREASE IN ADVERTISING COSTS ESPECIALLY IN FRANCE IN THE FACE OF SLUMPING DEMAND REVENUE FELL 48 TO 1449 BILLION FRANCS FROM 1522 BILLION FRANCS MR RICARD SAID THE ECONOMIC ENVIRONMENT WORLDWIDE WAS GENERALLY UNFAVORABLE LAST YEAR BUT THE GROUP'S GEOGRAPHIC AND PRODUCT DIVERSITY HELPED IT THROUGH THE HARD TIMES HE NOTED THAT IT WAS THE FIRST YEAR THAT REVENUE OUTSIDE OF FRANCE TOPPED DOMESTIC REVENUE 9303250052 930325 INTERNATIONAL BRIEF KINGFISHER PLC UK RETAILER'S PRETAX PROFIT DECLINED 74 IN FISCAL 1993 THE UK RETAILING GROUP KINGFISHER PLC SAID ITS PRETAX PROFIT FELL 74 IN THE YEAR ENDED JAN 30 TO 2109 MILLION 313 MILLION HURT BY COSTS FOR ITS WITHDRAWAL FROM NONRETAIL PROPERTY DEVELOPMENT THE EARNINGS EROSION MATCHED FORECASTS KINGFISHER MADE TO ACCOMPANY A RIGHTS ISSUE IN FEBRUARY SALES ROSE 47 TO TO 355 BILLION 527 BILLION THE COMPANY RAISED ITS DIVIDEND TO 137 PENCE 20 CENTS FROM 13 PENCE THERE ARE A FEW TENTATIVE SIGNS THAT SHOPPERS ARE SLOWLY EMERGING FROM THEIR LONG HIBERNATION BUT THEY ARE DOING SO EXTREMELY WARILY SAID SIR GEOFFREY MULCAHY CHAIRMAN AND CHIEF EXECUTIVE ON ITS PREVIOUSLY ANNOUNCED MERGER WITH DARTY OF FRANCE KINGFISHER SAYS FORMAL COMPLETION IS DUE IN EARLY JUNE ACCORDING TO THE COMPANY THE MERGER WITH DARTY WILL CREATE THE LARGEST SPECIALIST ELECTRICAL GROUP IN EUROPE DARTY HAS A 12 NATIONAL MARKET SHARE AMONG ELECTRONIC RETAILERS IN FRANCE 9303250051 930325 BUSINESS BRIEF MICROGRAFX INC STOCKHOLDERS FILE FIVE SUITS ALLEGE FIRM MISLED THEM SHAREHOLDERS OF MICROGRAFX INC HAVE FILED FIVE CLASSACTION LAWSUITS ALLEGING THAT THE COMPANY MADE MISLEADING STATEMENTS ABOUT ITS PROSPECTS MICROGRAFX SAID IT DENIES THE ALLEGATIONS AND INTENDS TO VIGOROUSLY DEFEND THE ACTION THE SUITS FILED IN A DALLAS FEDERAL COURT SEEK DAMAGES FOR INVESTORS WHO RECENTLY BOUGHT THE COMPANY'S STOCK AT 8 TO 13 A SHARE ON FRIDAY MICROGRAFX SAID IT EXPECTED TO REPORT A LOSS IN THE FOURTH QUARTER AND THE YEAR ENDING MARCH 31 BECAUSE OF SLOW SALES AND SEVERAL CHARGES THE SOFTWARE DEVELOPER ALSO SAID IT WAS ELIMINATING 20 OF ITS STAFF AND THAT IT HAD DISCOVERED POSSIBLE FRAUD AT ITS JAPANESE UNIT THE COMPANY'S STOCK HAS PLUNGED TO 475 IN NATIONAL OVERTHETRADING YESTERDAY FROM 8625 LAST THURSDAY IN THE SUITS THE PLAINTIFFS CLAIM THAT MICROGRAFX'S OFFICERS AND DIRECTORS ARE LIABLE FOR THEIR LOSSES BECAUSE THE OFFICIALS ALLEGEDLY MADE MISLEADING FINANCIAL REPORTS AND PUBLIC STATEMENTS 9303250050 930325 LEISURE & ARTS FILM INNOCENTS ADRIFT IN STOLEN CHILDREN' BY JULIE SALAMON IT SOUNDS LIKE THE STUFF TELEVISION MOVIES ARE MADE OF MOTHER SELLS EIGHTYEAROLD DAUGHTER INTO PROSTITUTION INDEED THIS HEADLINE INSPIRED ITALIAN DIRECTOR GIANNI AMELIO TO MAKE A FILM IL LADRO DI BAMBINI SHOWING IN THIS COUNTRY AS STOLEN CHILDREN BUT HE HAS DONE WITH THIS SORRY INFORMATION WHAT NO ONE IN THIS COUNTRY MANAGED TO DO WITH SAY THE AMY FISHER STORY HE HAS USED THIS FACT TO FIND SOME TRUTH ABOUT THE DISINTEGRATION OF CULTURE AND FAMILY IN MODERN ITALY WITHOUT PREACHING AND WITHOUT TITILLATION IT'S A FASCINATING FILM IN THE TRADITION OF ITALIAN NEOREALISM USING A SOBER STRAIGHTFORWARD STYLE TO TELL A STORY THAT HAS REALLY BEEN CONCEIVED AS A FABLE MR AMELIO WHO ALSO COAUTHORED THE SCREENPLAY OPENS THE FILM WITH THE HEADLINE BEING PLAYED OUT IN THE FIRST SCENE WE SEE THE MOTHER SEND HER LITTLE BOY OUT OF THEIR APARTMENT IN MILAN SO HE DOESN'T INTERFERE WITH BUSINESS NOT LONG AFTER HIS SISTER'S NEXT CUSTOMER ARRIVES THE POLICE COME AND TAKE THEM ALL AWAY THE FILM IS DEVOTED TO WHAT HAPPENS NEXT A YOUNG MILITARY POLICEMAN NAMED ANTONIO ENRICO LO VERSO IS ASSIGNED TO DELIVER THE CHILDREN TO AN ORPHANAGE IN ANOTHER CITY THE PRIEST RUNNING THE HOME DOESN'T WANT TO ACCEPT THEM BECAUSE OF THE GIRL'S HISTORY SO THE POLICEMAN HAS TO TAKE THEM SOMEWHERE ELSE TO SICILY THE MOVIE FOLLOWS THEIR JOURNEY WHICH BECOMES SOMETHING MORE FOR ALL OF THEM POLICEMAN AND CHILDREN THE POLICEMAN BARELY MORE THAN A BOY FROM A SMALL TOWN IN SOUTHERN ITALY SEEMS TOO SENSITIVE AND UNSURE TO BE A COP AT LEAST A MOVIE COP LIKE THE CHILDREN HE IS ADRIFT THOUGH IN A MUCH LESS TRAUMATIC WAY THE RELATIONSHIP THEY FORM DURING THEIR TIME ON THE ROAD BRIEFLY RESTORES WHAT THEY HAVE LOST A CONNECTION TO SOMETHING FILMED WITHOUT FLOURISH STOLEN CHILDREN HAS A POWERFUL EMOTIONAL EFFECT THAT'S ALMOST PHYSICAL YET SUBTLE IT'S LIKE CERTAIN FOODS THAT DON'T ASSERT THEMSELVES UNTIL YOU'VE HAD A CHANCE TO FULLY ABSORB NUANCE IN TEXTURE AND SMELL THE CHARACTERS REVEAL THEMSELVES SLOWLY WITHOUT THE USUAL TELEGRAPHING SIGNALS OF AMERICAN FILMS ESPECIALLY ONES WITH CHILDREN LIKE REAL CHILDREN WHO HAVE BEEN HURT THIS MOVIE'S CHILDREN ARE CAUTIOUS NOTHING IN LIFE HAS GIVEN THEM REASON TO BE TRUSTFUL AND THEY AREN'T THE GIRL WHO IS 11 HERE INSTEAD OF EIGHT WHEN HER MOTHER IS ARRESTED HIDES BEHIND SOPHISTICATION POLISHING HER FINGERNAILS DISDAINFULLY THREATENING TO SAY FALSELY THAT THE POLICEMAN FONDLED HER WHEN HE TRIED TO HURRY HER ALONG HER YOUNGER BROTHER SIMPLY REFUSES TO SPEAK OR EAT ANYTHING BUT POTATO CHIPS WITH HIS THIN SHOULDERS AND SOBER EXPRESSION HE LOOKS LIKE AN OLD MAN WHOSE FACE IS STRANGELY UNLINED YOU CAN SEE THAT THESE CHILDREN HAVE DISPLACED SADNESS WITH NUMBNESS THE DIRECTOR HAS USED NONPROFESSIONALS VALENTINA SCALICI AND GIUSEPPE IERACITANO TO PLAY THE PARTS AND THEIR NONEXPERIENCE WORKS MARVELOUSLY THEY HAVEN'T LEARNED HOW TO PLAY TO THE CAMERA THEY LET THE CAMERA COME TO THEM THE FILMMAKERS DEFTLY LET US SEE THE WORLD THROUGH THEIR SENSORY SYSTEMS EVERYTHING SEEMS UGLY NOISY IMPERSONAL THE HUGE APARTMENT COMPLEX WHERE THEY LIVE THE TRAIN STATION EVEN THE PARK THEY WALK THROUGH WITH THE POLICEMAN IS FILLED WITH HOMELESS PEOPLE THOUGH THE POLICEMAN BARELY NOTICES THEM AT FIRST ANTONIO IS ANNOYED AT BEING STUCK WITH THIS UNDIGNIFIED TASK A JOB FOR A WOMAN HE COMPLAINS HIS PARTNER JUMPS SHIP AT THE BEGINNING OF THEIR ASSIGNMENT SNEAKING OFF TO SEE HIS GIRLFRIEND FIGURING THIS IS EASY ENOUGH FOR ONE PERSON TO HANDLE YET ANTONIO ISN'T THE FILM'S BOGEYMAN ON THE CONTRARY HE IS A YOUNG MAN WITH A GOOD HEART AS WELL AS A SENSE OF DUTY HE CHANGES FROM UNIFORM TO JEANS ALMOST AT THE BEGINNING REMOVING THE OBVIOUS SYMBOLISM OF THE STATE'S CONTROL OVER INNOCENTS IN HIS WAY HE IS AN INNOCENT TOO ONE OF THE PICTURE'S BEST SCENES TAKES PLACE AT ANTONIO'S SEASIDE HOMETOWN WHERE HE STOPS TO GIVE THE CHILDREN A REST THERE THEY ARE GIVEN A DIFFERENT VIEW OF THEIR UNEASY ESCORT WATCHING HIM HUG HIS OLDER SISTER TALK AFFECTIONATELY WITH HIS OLD GRANDMOTHER THE CHILDREN DROP THEIR GUARD AND FOR THE FIRST TIME IN THE MOVIE THEY SEEM LIKE CHILDREN BUT EVEN THERE MODERN LIFE ENCROACHES SITTING ON A ROOFTOP ANTONIO LOOKS AT THE SEA ACROSS THE TOPS OF LIFELESS MODERN BUILDINGS HE HAS TO SPEAK LOUDLY TO BE HEARD ABOVE THE NOISE OF THE TRAFFIC AS HE TELLS THE LITTLE BOY ABOUT HIS ANTONIO'S VILLAGE WHICH HAS BEEN BULLDOZED TO MAKE ROOM FOR NEW DEVELOPMENT THIS LARGER THEME EMERGES IN THE BACKGROUND IT IS NEVER ANNOUNCED LIKE THE STORY ITSELF IT SEEPS INTO CONSCIOUSNESS SUBTLY AND FIRMLY AND LINGERS VIDEO TIP MR AMELIO WAS MUCH INFLUENCED BY THE ITALIAN NEOREALISTS THE DIRECTORS MAKING FILMS UNDERSCORED BY SOCIAL COMMENTARY AFTER WORLD WAR II THE CLASSIC EXAMPLE OF THIS IS VITTORIO DE SICA'S THE BICYCLE THIEF 9303250049 930325 LEISURE & ARTS POEMS BY THE BYTE A HACKER'S GARDEN OF VERSE BY AMY GAMERMAN IMAGINE SITTING DOWN AT YOUR COMPUTER BOOTING IT UP AND HAVING 1300 YEARS OF ENGLISH POETRY INSTANTLY AT YOUR FINGERTIPS ALL OF IT FROM CHAUCER TO SHAKESPEARE TO TS ELIOT AND EVERY FORGOTTEN WORDSMITH IN BETWEEN A LIBRARY MORE EXTENSIVE THAN ANY ON EARTH BUT MORE COMPACT THANKS TO ITS DISK FORMAT THAN A PAPERBACK WELL IF YOU HAVE 41000 TO THROW AROUND AND AN IBMCOMPATIBLE COMPUTER EQUIPPED WITH CDROM AND MICROSOFT WINDOWS ALL THAT POESY COULD BE YOURS WITH THE LAUNCH OF THE FIRST PORTION OF THE ENGLISH POETRY FULLTEXT DATABASE IAMBIC PENTAMETER HAS FINALLY INTERFACED WITH THE COMPUTER AGE ENGLISH POETRY IS THE WORK OF CHADWYCKHEALEY A BRITISH PUBLISHER SPECIALIZING IN ELECTRONIC MEDIA IT HAS BASED ITS SELECTIONS ON THE NEW CAMBRIDGE BIBLIOGRAPHY OF ENGLISH LITERATURE THE MOST COMPLETE REFERENCE GUIDE TO PUBLISHED POETRY WITH JUST 16859 POEMS THIS FIRST RELEASE WHICH CONTAINS TWO COMPUTER DISKS AND ONE CDROM DISK IS ONLY A FEW BYTES OUT OF THE POETRY PIE WHEN THE THIRD AND FINAL RELEASE COMES OUT SOMETIME IN 1994 THE DATABASE WILL FEATURE THE WORKS OF 1350 POETS WHO SONNETIZED AND ELEGIZED BETWEEN THE YEARS 600 AND 1900 A NEARGIGABYTE OF VERSE THERE ISN'T A LIBRARY IN THE WORLD THAT WILL BE ABLE TO MATCH IT INDEED TO ASSEMBLE THE MANY RARE EDITIONS OF VERSE THAT MAKE UP THE MAMMOTH DATABASE CHADWYCKHEALEY HAD TO APPEAL TO LIBRARIES ALL OVER ENGLAND NOW LIBRARIES EVERYWHERE WANT TO OWN THE CLOSEST THING YET TO THE PLATONIC IDEAL OF A POETRY LIBRARY UNDETERRED BY THE ASTRONOMICAL PRICE TAG NEARLY 100 INSTITUTIONS AMONG THEM THE NATIONAL LIBRARIES OF FRANCE AND BRITAIN THE NEW YORK PUBLIC LIBRARY AND HARVARD UNIVERSITY HAVE PUT IN THEIR ORDERS STILL AS SOMEONE WHO ONCE TOILED IN THE GROVES OF ACADEME HERSELF I HAD MY DOUBTS ABOUT REDUCING THE BETTER PART OF ENGLISH POETRY TO A SET OF DISKS INDISTINGUISHABLE IN APPEARANCE ANYWAY FROM BARBRA STREISAND'S LATEST BOXED SET BESIDES WHAT WOULD GRADUATE WORK BE WITHOUT HOURS SPENT POURING OVER CARD CATALOGS SCRIBBLING DOWN CALL NUMBERS AND TRUDGING TO THE STACKS TO SEARCH FOR BOOKS THAT HAVE INEXPLICABLY DISAPPEARED FROM THEIR SHELVES BUT AFTER TWO DAYS SPENT PLAYING WITH ENGLISH POETRY I'VE BEEN SEDUCED BY CHADWYCKHEALEY'S STACKS WITHOUT WALLS USING THE DATABASE IS LIKE BROWSING THROUGH THE SHELVES OF AN ENORMOUS LIBRARY FULL OF THE RAREST AND MOST OBSCURE BOOKS REALLY OBSCURE CHADWYCKHEALEY HAS NOT HESITATED TO INCLUDE SUCH FORGOTTEN WARBLERS OF THE WOODNOTE WILD AS GEORGE AUGUSTUS SIMCOX 18411905 AND MENELLA BUTE SMEDLEY 18201877 BUT WHERE ARE MILTON SHAKESPEARE AND KEATS APPARENTLY COPYRIGHT PROBLEMS AND DEBATE OVER THE MOST DEFINITIVE EDITIONS HAVE HELD UP THE INCLUSION OF POETRY'S HEAVIEST HITTERS UNTIL LATER RELEASES THAT'S WHY THE FIRST INSTALLMENT IS TOPHEAVY WITH LESSER VICTORIAN POETS SUCH AS RICHARD HARRIS BARHAM 17881845 AUTHOR OF THE OLD WOMAN'S CAT DEAR ME DEAR ME HERE'S A VERY BAD SMELL WHY WHAT CAN IT BE HAS BEEN ON THE RUG OR THE CARPET OR MAT THANKS TO CHADWYCKHEALEY BARHAM HAS BEEN RESURRECTED FROM POETRY PURGATORY INDEED IT'S POETS LIKE BARHAM WHO ARE THE BEAUTY OF THE DATABASE ACCORDING TO ITS CREATOR I THINK OF IT TO SOME EXTENT AS A DEMOCRATIZATION OF POETRY SAID SIR CHARLES CHADWYCKHEALEY ACADEMICS AND STUDENTS AS MUCH AS ORDINARY INDIVIDUALS INEVITABLY ARE DRAWN BACK TO THE NAMES THAT THEY KNOW PARTICULARLY BIG NAMES THE DATABASE GIVES YOU THE OPPORTUNITY TO DISPENSE WITH POETIC PECKING ORDERS ALTOGETHER YOU HAVE THE OPTION OF SEARCHING POEMS BY A KEYWORD OR GROUPS OF WORDS PHRASE TITLE DATE AND POET NAME YOU CAN EVEN SORT OUT RHYMED FROM UNRHYMED POEMS A BROWSE FUNCTION LETS YOU SCROLL THROUGH THE INDEX OF POETS OR SEE HOW MANY TIMES CERTAIN WORDS OCCUR THE FIRST INSTALLMENT FOR INSTANCE CONTAINS 670 KISSES BUT JUST ONE KISSER IN ROBERT BROWNING'S THE RING AND THE BOOK SUMMON THE POEM BY CLICKING THE VIEW POEM ICON AND THEN THE HIT BOX TO LOCATE THE WORD AND YOU DISCOVER THAT THE KISSER FOR WHAT IT'S WORTH IS A FOOTKISSER YOU CAN ALSO SCROLL BACKWARD OR FORWARD TO BROWNING'S OTHER POEMS ONCE YOU GET THE HANG OF IT ANYTHING IS POSSIBLE I DECIDED TO DO RESEARCH ON POETIC AMYS MAKING THE SOFTWARE ASSEMBLE A DIRECTORY OF WHAT WALT WHITMAN MIGHT HAVE CALLED SONGS OF MYSELF I ENTERED MY NAME AND WITHIN SECONDS UNEARTHED WILLIAM COX BENNETT'S RAVENBLACK ARE AMY'S TANGLING TRESSES AND SEVEN OTHER AMYSTUDDED POEMS BY CLICKING THE MOUSE ON THE BIBLIOGRAPHY ICON A PICTURE OF A ROW OF BOOKS I LEARNED THAT BENNETT LIVED FROM 1820 TO 1895 AND THAT THE POEM IS FROM QUEEN ELEANOR'S VENGEANCE AND OTHER POEMS PUBLISHED IN LONDON BY CHAPMAN & HALL IN 1857 BRINGING UP THE REAR WAS ALFRED TENNYSON'S LOCKSLEY HALL SIXTY YEARS AFTER WHICH CONTAINS THE DISPIRITING LINE AMY LOVED ME AMY FAIL'D ME AMY WAS A TIMID CHILD MOVING ON MY RESEARCH INTO CORNY RHYME SCHEMES WAS REWARDED BY THE DISCOVERY THAT THERE REALLY ARE POEMS THAT MATCH MOON WITH JUNE AND SPOON AS THESE LINES BY THE NEWLY UBIQUITOUS BARHAM PROVE IN A CARRIAGE LIKE THAT YOU'RE A BIT OF A SPOON MAYBE IT'S JUST AS WELL THAT THE DATABASE DOESN'T ENCOURAGE ACTUAL READING FOR ONE THING GLARE FROM THE COMPUTER SCREEN SOON TIRES YOUR EYES BUT SHOULD YOU ACTUALLY LOSE YOURSELF IN A POEM AND FORGET TO CLICK THE CURSOR AFTER A MINUTE OR SO THE SCREEN WILL ERUPT IN A COMPUTERIZED METEORITE SHOWER A SOCALLED SCREENSAVER THAT KEEPS THE VIDEO TUBE FROM BURNING OUT THE DATABASE'S CREATORS SEEM TO BE AWARE OF ITS READERUNFRIENDLINESS HOW ELSE TO EXPLAIN THE ICON THAT INVITES YOU TO VIEW POEM RATHER THAN TO READ IT BUT THEN CHADWYCKHEALEY'S AIM IS NOT TO MAKE US TRADE IN OUR DOGEARED VOLUMES OF WORDSWORTH FOR DISKS ABSOLUTELY NOT SAID SIR CHARLES I THINK IF ANYTHING IT THE DATABASE MIGHT GENERATE MORE POETRY PUBLISHING I FOR INSTANCE WOULD LIKE TO PRODUCE LIMITED EDITIONS OF SOME OF THESE POETS THAT HAVE NEVER BEEN REPRINTED SOME CAVEATS TO POETRYLOVING PLUTOCRATS AND LIBRARIANS TEMPTED TO BUY ENGLISH POETRY THE COMPUTER WON'T ORGANIZE FINDINGS FOR YOU CHRONOLOGICALLY AND IT WON'T TELL YOU HOW LONG A SELECTION IS AND THERE ARE OTHER SNAGS MY RESEARCH INTO THE LITERARY LOTUS EATER TURNED UP BEEEATERS BEEFEATERS A SERPENTEATER AND EATERS OF OUR SALT AND IF I HADN'T THOUGHT TO PUT A SPACE BETWEEN SNUFF AND BOX DURING MY INQUIRIES INTO THE POETIC SNUFFBOX I NEVER WOULD HAVE RETRIEVED BARBARINA BRAND'S TO UGO FOSCOLO WITH A SNUFFBOX OR MORE TRAGICALLY ROBERT LEIGHTON'S THE SNUFFIE AULD MAN A NEW FAVORITE IT'S WIDE AS THE CHIMLIE IT'S RED AS AN EMBER BUT IF I HAD ANY LINGERING DOUBTS ABOUT THE WISDOM OF MARRYING POETIC METER TO THE MICROCHIP FRANCIS THYNNE DISPELLED THEM IN HIS APTLY NAMED POETRYE THYNNE 15451608 OFFERS THE MOST ELOQUENT ARGUMENT YET FOR THRUSTING THE STUFF INTO THE FULL GLARE OF THE COMPUTER AGE HOW'D I FIND IT SIMPLE SO FAR IT'S THE ONLY POETRYE IN ENGLISH POETRY 9303250048 930325 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG BACK IN THE EARLY DAYS OF PERSONAL COMPUTING A WHOLE DOZEN YEARS AGO BUYING A COMPUTER AND SOFTWARE WAS SOMETHING LIKE PURCHASING A DELICATE SCIENTIFIC INSTRUMENT OR MAYBE RARE AND EXPENSIVE AUDIO EQUIPMENT YOU WENT TO A SMALL SPECIALIZED STORE WHERE PEOPLE STEEPED IN TECHNICAL KNOWLEDGE ADVISED YOU AT LENGTH AND THEN SOLD YOU COSTLY COMPONENTS WHICH YOU CARTED TO HOME OR OFFICE WITH GREAT CARE TODAY SUCH SHOPS ARE INCREASINGLY RARE REPLACED BY A FEW SCATTERED COMPUTER SUPERSTORES THE SIZE OF KMARTS WHERE THE CLERKS USUALLY KNOW LITTLE AND CUSTOMERS CASUALLY PILE COMPUTERS AND SOFTWARE INTO SHOPPING CARTS AS IF THEY WERE CANS OF SOUP FOR MANY PEOPLE AND BUSINESSES HOWEVER THE QUICKEST AND CHEAPEST WAY TO BUY COMPUTER HARDWARE AND SOFTWARE IS BY MAIL ORDER YOU JUST DIAL A TOLLFREE NUMBER MAKE YOUR CHOICES AND THE STUFF IS DELIVERED TO YOU PRONTO OFTEN OVERNIGHT TO THOSE WHO HAVEN'T TRIED IT LET ME ASSURE YOU IT WORKS SO LONG AS YOU HAVE A FAIR IDEA OF WHAT YOU WANT BEFORE YOU CALL PICK A REPUTABLE COMPANY TO DEAL WITH AND FOLLOW A FEW BASIC PRECAUTIONS MAIL ORDER IS AS EFFECTIVE FOR BUYING POWERFUL COMPUTERS AS FOR ORDERING THAT NEW CASSETTE OF GREAT BEATLES HITS PERFORMED BY A POLKA BAND THERE ARE TWO MAIN TYPES OF PC MAILORDER COMPANIES ONE SELLS MAINLY COMPUTERS AND RELATED HARDWARE THESE COMPANIES LARGELY MARKET THEIR OWN BRANDS SO YOUR CHOICE AMONG THEM DEPENDS HEAVILY ON AN ADVANCE EVALUATION OF EACH COMPANY'S PRODUCT LINE THE OTHER MAIN TYPE OF MAILORDER COMPANY HANDLES PRODUCTS FROM A LARGE NUMBER OF SUPPLIERS AND MOSTLY SELLS SOFTWARE AND PERIPHERALS EQUIPMENT LIKE PRINTERS AND MONITORS IF YOU'RE LOOKING FOR A COMPLETE PC THERE ARE SCORES OF MAILORDER COMPANIES TO CHOOSE FROM BUT THE VAST MAJORITY ARE NONAME BRANDS DIFFICULT TO JUDGE FOR QUALITY OR EVEN TO DISTINGUISH FROM ONE ANOTHER THE SAFEST COURSE IS TO PICK A MAILORDER BRAND USED SUCCESSFULLY BY PEOPLE YOU KNOW OR ONE THAT HAS BEEN REPEATEDLY PRAISED BY THE LEADING COMPUTER MAGAZINES THESE MAGAZINES AREN'T EXACTLY INVESTIGATIVE JOURNALS AND THE MAILORDER COMPANIES ARE AMONG THEIR BIGGEST ADVERTISERS BUT BRANDS THAT CONSISTENTLY WIN THE MAGAZINE REVIEWS ARE LIKELY TO BE GENERALLY RELIABLE AMONG THE TOP MAILORDER BRANDS ARE DELL COMPUTER 8003488342 GATEWAY 2000 8008462000 AND ZEOS INTERNATIONAL 8005547172 EACH HAS HAD A FEW PROBLEMS HERE AND THERE BUT ON THE WHOLE THEY SELL GOOD SYSTEMS WITH QUALITY COMPONENTS AT LOW PRICES INTERNATIONAL BUSINESS MACHINES 8004262968 ALSO SELLS SOME OF ITS PCS OVER THE PHONE AS DOES COMPAQ COMPUTER 8008885858 THE PROFUSION OF FEATURES AND TECHNICAL DISTINCTIONS AMONG THEM CAN BE VERY CONFUSING EVEN FOR PEOPLE FAMILIAR WITH COMPUTERS THE ADS ARE STUDDED WITH TERMS LIKE LOCAL BUS VIDEO A FASTER MECHANISM FOR DISPLAYING THINGS SO BEFORE CALLING TRY TO SETTLE ON ROUGHLY THE FEATURES YOU WANT BY TALKING TO FRIENDS OR READING THE MAGAZINES AND HOW MUCH YOU WANT TO SPEND CALL SEVERAL VENDORS AND MAKE SPECIFIC COMPARISONS ABOVE ALL DON'T BE AFRAID TO ASK A LOT OF QUESTIONS EVEN IF YOU WORRY THEY MAY BE DUMB ONES MAKE THE SALESPERSON SPEAK ENGLISH ALL OF THE ABOVE APPLIES MAINLY TO IBMCOMPATIBLE PCS APPLE COMPUTER'S MACINTOSH MACHINES AREN'T SOLD AS MUCH BY MAIL BECAUSE THE COMPANY DISCOURAGES THE PRACTICE APPLE SELLS A FEW MODELS THROUGH A CATALOG IT ISSUES 8007951000 FOR SOFTWARE AND PERIPHERALS TWO COMPANIES STAND OUT IN MY EXPERIENCE EACH HAS SEPARATE ARMS SPECIALIZING IN PRODUCTS FOR IBMCOMPATIBLES AND MACS ONE PAIR IS PC CONNECTION 8008000004 AND MACCONNECTION 8008003333 THE OTHER IS MICROWAREHOUSE 8003677080 AND MACWAREHOUSE 8002556227 THESE CATALOGS CONTAIN NOT ONLY SOFTWARE BUT MEMORY CHIPS HARD DISK DRIVES CDROM DRIVES CABLES MODEMS AND MORE MICROWAREHOUSE EVEN SELLS A 239 COMPLETE DOITYOURSELFREPLACEMENT MOTHERBOARD THE MAIN INTERNAL COMPONENT IN A COMPUTER I FOR ONE WON'T BE DOINGITMYSELF AGAIN IT'S SENSIBLE BEFORE CALLING THESE PLACES TO KNOW WHAT SOFTWARE OR ADDONS YOU WANT OR AT LEAST TO HAVE IT NARROWED DOWN TO A FEW CHOICES YOU CAN'T BROWSE BY PHONE SOME GENERAL TIPS APPLY TO BOTH KINDS OF MAILORDER DEALERS ALWAYS USE A CREDIT CARD TO ORDER THAT GIVES YOU MORE LEVERAGE TO CANCEL OR CONTEST THE SALE AND SOME CREDITCARD COMPANIES OFFER ADDED WARRANTIES ALWAYS CONFIRM THE PRICE ADS AND CATALOGS ARE FREQUENTLY REVISED AND THE FINE PRINT MAY CONTAIN EXTRA FEES SEE WHETHER THE COMPANY OFFERS PRICE PROTECTION A REBATE IF THE PRICE DROPS WITHIN A SHORT PERIOD AFTER YOU BUY MAKE SURE THE DEALER YOU CHOOSE OFFERS A MONEYBACK GUARANTEE USUALLY GOOD FOR 30 DAYS AND TRY OUT YOUR PURCHASES WITHIN THE ALLOTTED TIME AVOID COMPANIES THAT REQUIRE A RESTOCKING FEE ON RETURNS OR CHARGE EXTRA FOR CREDITCARD SALES FOR SOFTWARE MAKE SURE YOU'RE GETTING THE LATEST VERSION AND CHECK TO SEE WHETHER IT'S IN STOCK SOFTWARE PUBLISHERS OFTEN ADVERTISE THEIR NEW RELEASES MONTHS BEFORE THEY ARE AVAILABLE BUT ON THE WHOLE IF YOU STICK TO WELLKNOWN COMPANIES AND FOLLOW THESE BASIC RULES MAIL ORDER CAN BE AN EXCELLENT WAY TO BUY COMPUTER HARDWARE AND SOFTWARE NOT TO MENTION YOUR OWN COPY OF THE PENNY LANE POLKA 9303250047 930325 BUSINESS BRIEF LIVE ENTERTAINMENT INC JUDGE APPROVES EMERGENCE FROM THE BANKRUPTCY COURT LIVE ENTERTAINMENT INC A LOS ANGELES HOME VIDEO AND ENTERTAINMENT SOFTWARE CONCERN SAID A JUDGE APPROVED ITS EMERGENCE FROM BANKRUPTCYLAW PROTECTION UNDER THE RESTRUCTURING PLAN ARRANGED BEFORE THE BANKRUPTCYCOURT FILING IN LATE JANUARY THE EQUITY STAKE OF LIVE'S LARGEST SHAREHOLDER CAROLCO PICTURES INC SHRANK TO ABOUT 35 FROM 499 CAROLCO IS AN ENTERTAINMENT COMPANY BASED IN WEST HOLLYWOOD CALIF THE STAKE OF PUBLIC SHAREHOLDERS FELL TO 35 FROM ABOUT 50 SAID MICHAEL WHITE LIVE GENERAL COUNSEL LIVE SHARES WHICH CONTINUE TO TRADE ON THE NEW YORK STOCK EXCHANGE WERE QUOTED YESTERDAY AT 225 A SHARE UNCHANGED IN LATE TRADING TOKYOBASED PIONEER ELECTRONIC CORP'S PIONEER LCDA INC UNIT ACQUIRED ROUGHLY 30 OF LIVE'S VOTING EQUITY THROUGH THE PURCHASE FOR 15 MILLION OF A NEW SERIES OF LIVE PREFERRED STOCK PRIOR TO THE REORGANIZATION PIONEER OWNED ABOUT A 1 EQUITY INTEREST 9303250046 930325 BENTSEN TO WIDEN BREAK ON CAPITAL GAINS TAXES WASHINGTON THE CLINTON ADMINISTRATION BOWING TO PRESSURE FROM SEN DALE BUMPERS D ARK AND BUSINESS LOBBIES WILL PROPOSE MAKING ITS SMALLBUSINESS CAPITALGAINS TAX BREAK MORE WIDELY AVAILABLE THAN IT ORIGINALLY PLANNED TREASURY SECRETARY LLOYD BENTSEN SAID THE ADMINISTRATION WILL PROPOSE HALVING THE CAPITALGAINS TAX RATE FOR NEW INVESTMENTS IN COMPANIES WITH AS MUCH AS 50 MILLION IN EQUITY AND DEBT THAT WOULD BE DOUBLE THE THRESHOLD THE TREASURY PROPOSED PREVIOUSLY A PROPOSAL BY SEN BUMPERS WHICH PRESIDENT CLINTON ENDORSED DURING THE CAMPAIGN WOULD APPLY TO COMPANIES WITH AS MUCH AS 100 MILLION IN CAPITAL MR BENTSEN DISCLOSED THE ADMINISTRATION'S SHIFT IN A SPEECH YESTERDAY INDIVIDUALS WHO SOLD QUALIFIED SMALLBUSINESS STOCK AFTER FIVE YEARS COULD SEE A CAPITAL GAINS RATE OF JUST 14 AND THAT'S THE LOWEST RATE SINCE THE 1930S HE SAID THE CHANGE DIDN'T SATISFY CRITICS WHO HAVE BEEN PRESSING THE ADMINISTRATION TO ALTER OTHER ELEMENTS OF THE PROPOSAL IT'S NOT MUCH IMPROVEMENT SAID ALLEN NEECE WHO REPRESENTS THE NATIONAL VENTURE CAPITAL ASSOCIATION THE GAIN ELIGIBLE FOR THE CLINTON TAX BREAK AS DESCRIBED LAST MONTH BY THE TREASURY WOULD BE LIMITED TO THE GREATER OF 10 TIMES THE ORIGINAL PRICE OF THE STOCK OR 1 MILLION THE BREAK ALSO WOULDN'T BE AVAILABLE TO INVESTORS IN COMPANIES ORGANIZED UNDER SUBCHAPTER S OF THE TAX CODE OR TO CORPORATE INVESTORS 9303250045 930325 BUSINESS BRIEF INTERNATIONAL TELECHARGE INC AMEX TO DELIST FIRM'S STOCK FOR NOT MEETING GUIDELINES INTERNATIONAL TELECHARGE INC DALLAS SAID ITS STOCK IS BEING DELISTED BY THE AMERICAN STOCK EXCHANGE BECAUSE IT FAILED TO MEET FINANCIAL AND STOCK PRICE GUIDELINES FOR LISTING THE COMPANY'S STOCK WILL BE DELISTED AFTER THE CLOSE OF TRADING MARCH 29 A COMPANY SPOKESMAN SAID THAT AMONG THE FACTORS IN ITS DELISTING THE COMPANY HAS BEEN IN FINANCIAL DIFFICULTY FOR SOME TIME IS FACING THE POSSIBILITY OF FILING FOR CHAPTER 11 BANKRUPTCY PROTECTION FROM CREDITORS HAS A NEGATIVE NET WORTH AND HAS SEEN ITS STOCK PRICE FALL BELOW 1 TO 21875 CENTS A SHARE THE LONGDISTANCE TELEPHONE SERVICE PROVIDER SAID IT HAS SOUGHT TO CONTINUE ITS LISTING UNTIL THE EXPECTED COMPLETION OF A PROPOSED MERGER WITH LONG DISTANCE COMMUNICATIONS INC A COMPANY OWNED BY RONALD HAAN INTERNATIONAL TELECHARGE'S CHAIRMAN STOCKHOLDERS WILL VOTE ON THE MERGER MARCH 29 INTERNATIONAL TELECHARGE SAID ITS STOCK WILL BE TRADED IN THE OVERTHECOUNTER MARKET AFTER THE DELISTING 9303250044 930325 INTERNATIONAL DAIMLERBENZ DISCLOSES HIDDEN RESERVES OF 245 BILLION SEEKS BIG BOARD LISTING BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN DAIMLERBENZ AG GERMANY'S BIGGEST INDUSTRIAL GROUP SAID IT WILL DECLARE FOUR BILLION MARKS 245 BILLION IN HIDDEN RESERVES AS AN EXTRAORDINARY PROFIT ON ITS 1992 BALANCE SHEET IT IS MAKING THE DISCLOSURE AS PART OF AN EFFORT TO BECOME THE FIRST GERMAN COMPANY TO LIST ITS SHARES ON THE NEW YORK STOCK EXCHANGE THE GROUP WHICH INCLUDES LUXURY CAR MAKER MERCEDESBENZ AG HAS LONG SOUGHT ENTRY TO THE US STOCK MARKET BUT WAS BLOCKED BY DIFFERENCES WITH US REGULATORS OVER ACCOUNTING PROCEDURES US REGULATORS SAY GERMAN COMPANIES GENERALLY PROVIDE TOO LITTLE TRANSPARENCY IN THEIR ACCOUNTS ADDING MAJOR GERMAN AND OTHER NONUS LISTINGS HAS BEEN A PRIORITY OF THE BIG BOARD IN RECENT YEARS THE EXCHANGE'S CHAIRMAN WILLIAM DONALDSON HAS TRIED TO CONVINCE REGULATORS TO BEND US ACCOUNTING RULES TO ALLOW ADDITIONAL FOREIGN LISTINGS THE DAIMLER LISTING COULD BE A FIRST STEP IN RESOLVING THE ACCOUNTING DIFFERENCES THAT HAVE KEPT MANY FOREIGN COMPANIES OFF THE BIG BOARD DAIMLERBENZ OFFICIALS SAID THEY WERE NEARING A COMPROMISE WITH THE US SECURITIES AND EXCHANGE COMMISSION THE AGREEMENT IS LIKELY TO BE COMPLETED WHEN DAIMLERBENZ FINANCE CHIEF GERHARD LIENER MEETS SEC CHAIRMAN RICHARD BREEDEN IN NEW YORK MONDAY AND TUESDAY THE COMPANY EXPECTS TO BE LISTED BEFORE THE END OF THIS YEAR THE COMPANY WOULDN'T ELABORATE BUT SAID THE ACCORD WITH THE SEC WOULD INCLUDE THE DISCLOSURE OF HIDDEN ASSETS THE FOURBILLIONMARK FIGURE OFFICIALS SAY EMERGED AS A RESULT OF APPLYING UNIFORM VALUATION METHODS THROUGHOUT THE COMPANY THIS IS MONEY THAT WE'VE HAD IN THE BACK ROOM SAID A SPOKESWOMAN BUT IT WILL BE VISIBLE NOW GERMAN COMPANIES ARE NOTORIOUS FOR SQUIRRELING AWAY CASH THAT NEVER APPEARS ON THEIR BALANCE SHEETS THIS IS A MAIN COMPLAINT FOREIGN INVESTORS HAVE ABOUT GERMAN CORPORATE ACCOUNTING PROCEDURES THE MONEY ISN'T EXPECTED TO BE USED BY DAIMLERBENZ FOR INVESTMENT INSTEAD THE SPOKESWOMAN SAID THE GROUP WILL RETAIN IT AS AN INTERNAL CASH RESERVE THE US STOCK MARKET LISTING WOULD COME AT A TIME OF DEEPENING GLOOM AT THE COMPANY'S STUTTGART HEADQUARTERS DAIMLERBENZ'S CHAIRMAN EDZARD REUTER TOLD GERMAN TELEVISION YESTERDAY THAT THE GROUP'S PROFIT DROPPED ABOUT 25 IN 1992 BUT HE DIDN'T SAY WHETHER THIS WAS A NET FIGURE EARLIER THIS MONTH A COMPANY SPOKESMAN SAID THE GROUP'S NET INCOME HAD DROPPED TO THE AREA OF 15 BILLION MARKS IN 1992 FROM 19 BILLION MARKS IN 1991 A 21 DECLINE MR REUTER ALSO SAID THE COMPANY FACED THE PROSPECT OF LAYOFFS IN ITS TROUBLED AUTOMOTIVE DIVISION SALES OF MERCEDESBENZ CARS LONG THE BACKBONE OF THE COMPANY HAVE PLUNGED IN RECENT MONTHS AND THE COMPANY IS RUSHING TO TRIM COSTS AND INTRODUCE MODELS TO APPEAL TO A BROADER RANGE OF BUYERS DAIMLERBENZ HAS REFUSED TO COMMENT ON A REPORT THAT ITS DOMESTIC CAR SALES PLUNGED 40 IN THE FIRST TWO MONTHS OF 1993 GETTING ITS SHARES LISTED IN NEW YORK WON'T SOLVE THE COMPANY'S PROBLEMS BUT IT WILL OPEN ACCESS TO A VAST NEW CAPITAL MARKET DAIMLERBENZ HAS STEADILY EXPANDED ITS PRESENCE ON GLOBAL STOCK MARKETS IN RECENT YEARS ITS SHARES WERE LISTED IN TOKYO AND LONDON IN 1990 AND IN VIENNA AND PARIS IN 1991 COMPANY OFFICIALS SAID ITS MODIFIED 1992 ACCOUNTS WOULD BE PRESENTED TO THE GROUP'S SUPERVISORY BOARD IN COMING DAYS AND THAT SHAREHOLDERS WOULD BE ASKED TO APPROVE ALLOCATION OF THE FOUR BILLION MARKS TO RESERVES RICHARD BREEDEN SEC CHAIRMAN CONFIRMED THAT THE AGENCY IS IN TALKS WITH DAIMLER WE HAVE BEEN DISCUSSING WITH THE COMPANY FOR SOME TIME NOW THE WAYS TO TRY TO BRIDGE THE DIFFERENCES IN THE ACCOUNTING TREATMENTS MR BREEDEN SAID ASSUMING THE REMAINING DETAILS ARE WORKED OUT HE SAID HE HOPED THE COMPLETED NEGOTIATIONS WILL PROVIDE A MODEL FOR OTHER FOREIGN COMPANIES SEEKING TO RAISE CAPITAL IN THE US MARKETS 9303250043 930325 WHO'S NEWS ALCOA CHAIRMAN'S '92 PAY JUMPED TO 12 MILLION PITTSBURGH ALUMINUM CO OF AMERICA CHAIRMAN PAUL H O'NEILL SAW HIS CASH PAY MORE THAN DOUBLE TO 12 MILLION IN 1992 A YEAR FOR WHICH THE ALUMINUM MAKER POSTED A 114 BILLION LOSS MR O'NEILL RECEIVED A SALARY OF 627000 AND A BONUS OF 575000 IN 1991 HE RECEIVED NO BONUS AND A SALARY OF 558250 IN ADDITION MR O'NEILL REALIZED 19 MILLION IN 1992 BY EXERCISING STOCK OPTIONS AND WAS GRANTED OPTIONS FOR AN ADDITIONAL 143948 SHARES EXCLUDING AN EXTRAORDINARY LOSS AND ACCOUNTING CHANGES OF 116 BILLION IN 1992 ALCOA'S INCOME FOR THE YEAR FELL TO 224 MILLION FROM 627 MILLION IN 1991 THE COMPANY SAID THE BONUS REFLECTS MR O'NEILL'S OUTSTANDING LEADERSHIP IN ACHIEVING NONFINANCIAL GOALS FOR SAFETY YIELD INVENTORY CONTROL AND CUSTOMER SATISFACTION ALCOA ALSO POINTED OUT THAT THE COMPANY'S PERFORMANCE EXCEEDED COMPETITORS' AND THAT MR O'NEILL'S CASH COMPENSATION WAS BELOW THE MEDIAN FOR COMPANIES TO WHICH ALCOA COMPARED ITSELF THE 57YEAROLD MR O'NEILL WHO RECENTLY WAS NAMED TO THE GENERAL MOTORS CORP BOARD HAS ENGINEERED A COSTCUTTING REORGANIZATION OF THE COMPANY THAT ALCOA SAYS WILL ADD AN EXTRA 200 MILLION TO ANNUAL NET INCOME SEPARATELY THE COMPANY'S CHIEF FINANCIAL OFFICER JAN HM HOMMEN SAID ALCOA HAS AMPLE ROOM TO MAINTAIN ITS 40CENTASHARE QUARTERLY DIVIDEND DESPITE A PROTRACTED SLUMP IN THE ALUMINUM BUSINESS 9303250042 930325 BUSINESS BRIEF SHAWMUT NATIONAL CORP FIRM AGREES TO ACQUISITION OF BANK IN NEW HAMPSHIRE SHAWMUT NATIONAL CORP SAID IT AGREED TO ACQUIRE NEW DARTMOUTH BANK MANCHESTER NH FOR ABOUT 143 MILLION IN COMMON STOCK NEW DARTMOUTH BANK HAS 17 BILLION IN ASSETS SHAWMUT SAID IN THE YEAR ENDED SEPT 30 CLOSELY HELD NEW DARTMOUTH EARNED 205 MILLION SHAWMUT SAID IN HARTFORD CONN THAT THE PURCHASE WAS A NATURAL EXTENSION OF ITS GREATERBOSTON MARKET THE ACQUISITION EXPECTED TO CLOSE IN THE THIRD QUARTER SHOULD INCREASE SHAWMUT'S PERSHARE PROFIT IN THE FOURTH QUARTER THE COMPANY SAID IN 1994 SHAWMUT EXPECTS THE PURCHASE TO RAISE PERSHARE PROFIT FIVE CENTS IN THE FOURTH QUARTER SHAWMUT HAD NET OF 103 MILLION OR EIGHT CENTS A SHARE AFTER A 32 MILLION TAX BENEFIT FROM TAXLOSS CARRYFORWARDS FOR 1992 THE BANKING CONCERN HAD NET OF 752 MILLION OR 81 CENTS A SHARE AFTER AN 184 MILLION TAXLOSS CARRYFORWARD BENEFIT 9303250041 930325 BUSINESS BRIEF JOHN LABATT LTD COMPANY EXPECTS TO RECORD A CHARGE IN FISCAL 4TH PERIOD JOHN LABATT LTD SAID IT EXPECTS TO RECORD A CHARGE AGAINST EARNINGS IN ITS FISCAL FOURTH QUARTER WHICH ENDS APRIL 30 OF ABOUT 160 MILLION CANADIAN DOLLARS US1283 MILLION RELATED TO THE PLANNED SALE OF THE COMPANY'S DAIRY BUSINESS IN NEW JERSEY LABATT BASED IN LONDON ONTARIO SAID IT CURRENTLY IS NEGOTIATING TO SELL ITS JOHANNA DAIRIES DIVISION LABATT ALSO HAS PROPOSED SPINNING OFF TO ITS SHAREHOLDERS ITS CANADIAN DAIRY BUSINESS AULT FOODS IN A TRANSACTION THAT WILL BE VOTED ON BY SHAREHOLDERS NEXT MONTH THE MOVES ARE PART OF LABATT'S STRATEGY OF FOCUSING ON ITS BREWING AND ENTERTAINMENT ACTIVITIES IN FISCAL 1992 LABATT'S COMBINED DAIRY OPERATIONS HAD OPERATING PROFIT OF C62 MILLION ON SALES OF C211 BILLION THE US BUSINESS ACCOUNTED FOR ABOUT HALF THE SALES AND PRACTICALLY NONE OF THE PROFIT FOR THE SAME PERIOD LABATT HAD NET INCOME OF C101 MILLION ON SALES OF C384 BILLION 9303250040 930325 BUSINESS BRIEF JP MORGAN & CO CONCERN WILL TAKE CHARGE FOR RETIREE HEALTH BENEFITS JP MORGAN & CO SAID IT WILL INCUR A 137 MILLION CHARGE AGAINST FIRSTQUARTER EARNINGS TO ACCOUNT FOR HEALTH BENEFITS OF RETIREES THE COMPANY ALSO SAID IT IS REVISING UPWARD 1992 EARNINGS BY 200 MILLION OR 103 A SHARE TO REFLECT THE ADOPTION RETROACTIVE TO JAN 1 1992 OF FASB 109 FOR UNUSED TAX CREDITS THE NEW YORK BANKING COMPANY PREVIOUSLY REPORTED 1992 NET INCOME OF 1382 BILLION OR 692 A SHARE THE ONETIME CHARGE RELATES TO THE ADOPTION OF FASB 106 WHICH REQUIRES COMPANIES TO RECOGNIZE THE COSTS OF RETIREES' HEALTH BENEFITS THE COMPANY SAID THAT IN ADDITION TO THE 137 MILLION CHARGE ITS ADOPTION OF FASB 106 WILL CAUSE ITS ANNUAL EXPENSES TO BE 21 MILLION HIGHER 9303250039 930325 ASSESSING GERSTNER IBM'S PICK IS TALENTED BUT SOME SEE FLAWS IN HIS RECORD AT RJR TOBACCO RESULTS SLIP IN SPITE OF HIS EFFORTS AND HE IS NO COMPUTER EXPERT PARALLELS WITH MAINFRAMES BY STAFF REPORTERS GEORGE ANDERS EBEN SHAPIRO MICHAEL W MILLER AND LAURENCE HOOPER NEW YORK BY SEEKING TOBACCO EXECUTIVE LOUIS V GERSTNER JR TO BE ITS NEW CHIEF EXECUTIVE OFFICER INTERNATIONAL BUSINESS MACHINES CORP IS GAMBLING THAT A COMPLETE OUTSIDER CAN RESTORE THE AILING COMPUTER GIANT TO GREATNESS BUT A CLOSE LOOK AT MR GERSTNER'S RECORD SUGGESTS THAT WHILE HE CAN BE A STRONG LEADER IN PROSPEROUS TIMES HE HASN'T YET SHOWN HIMSELF TO BE THE BATTLEFIELD COMMANDER THAT IBM NEEDS THE 51YEAROLD MR GERSTNER'S BIGGEST SUCCESSES WERE IN THE 1970S AND 1980S AS A MCKINSEY & CO PARTNER AND AS PRESIDENT OF AMERICAN EXPRESS CO IN HIS CURRENT JOB AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RJR NABISCO HOLDINGS CORP MR GERSTNER'S RECORD IS MIXED AND IF RUNNING RJR NABISCO IS HARD WORK SORTING OUT IBM IS LIKELY TO BE BRUTAL THE ARMONK NY COMPANY IS COMING OFF THE WORST YEAR IN ITS HISTORY IT POSTED A NEARLY 5 BILLION NET LOSS IN 1992 AND IBM'S STOCK HAS SKIDDED ALMOST 70 FROM ITS ALLTIME HIGH WIPING OUT MORE THAN 70 BILLION IN SHAREHOLDER VALUE THOSE PRESSURES LEAVE LITTLE TIME FOR A NEW BOSS TO MASTER IBM'S BUSINESS FULLY 51 OF IBM CUSTOMERS SURVEYED BY COMPUTERWORLD MAGAZINE SAY IBM NEEDS TO HIRE A CEO WITH A TECHNOLOGY BACKGROUND WITH MR GERSTNER LACKING SUCH A PEDIGREE HE'S GOING TO BE ON A VERY VERY STEEP LEARNING CURVE SAYS DAVID HANNA A FORMER IBM EXECUTIVE WHO IS NOW PRESIDENT OF HANNA GROUP A COMPUTERCONSULTING COMPANY OFFICIALLY IBM HASN'T YET ANNOUNCED A SUCCESSOR TO ITS CURRENT CHAIRMAN AND CEO JOHN AKERS WHO AGREED TO STEP DOWN IN A JANUARY MANAGEMENT SHAKEUP PEOPLE INSIDE AND OUTSIDE THE COMPANY THOUGH SAY MR GERSTNER HAS EMERGED AS THE BOARD'S CHOICE AFTER A TWOMONTH SEARCH THAT SEARCH NARROWED FASTER THAN IBM EXPECTED AS SEVERAL LEADING CANDIDATES AT TECHNOLOGY COMPANIES WITHDREW THE FUTURE OF IBM NOW LIES WITH AN EXTRAORDINARILY DRIVEN MANAGER KNOWN FOR HIS IRON WILL AS A YOUNG MCKINSEY CONSULTANT MR GERSTNER ONCE SEVERED TWO FINGERS IN A WEEKEND LAWNMOWER ACCIDENT THEN BADGERED A HOSPITAL SURGEON TO FINISH UP QUICKLY AND DISCHARGE HIM AHEAD OF SCHEDULE SO HE COULD ATTEND A MONDAY MORNING MEETING MR GERSTNER'S ADMIRERS AND THEY ARE MANY SAY THAT HIS GENERAL MANAGEMENT SAVVY WILL CARRY THE DAY I'M VERY HIGH ON HIM SAYS HOWARD CLARK SR FORMER CHAIRMAN OF AMERICAN EXPRESS HE'S A BRIGHT HARDWORKING GUY AND A VERY QUICK LEARNER HE WON'T BE THE COMPUTER GENIUS OF THE CENTURY BUT THEY NEED HIS MANAGERIAL TALENT MORE THAN THEY NEED HIS COMPUTER EXPERTISE IF IBM EXPECTED MR GERSTNER'S SELECTION TO BE GREETED WITH WIDESPREAD ACCLAIM HOWEVER IT LEARNED OTHERWISE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY IBM'S STOCK DROPPED 3125 A SHARE TO 51125 AMID REPORTS OF GLOOMY PREDICTIONS FOR THE TROUBLED MAINFRAME COMPUTER MARKET AND OF MR GERSTNER'S IMMINENT SELECTION SOME MAJOR CUSTOMERS MEANWHILE VOICED CONCERN ABOUT HAVING AN EXECUTIVE FROM FAR OUTSIDE THE COMPUTER INDUSTRY TAKE COMMAND OF AMERICA'S LEADING TECHNOLOGY COMPANY MR GERSTNER DECLINED TO COMMENT YESTERDAY BUT PEOPLE WHO KNOW HIM OR THE COMPUTER INDUSTRY WELL SAY THE ANSWERS TO THREE CRUCIAL QUESTIONS WILL DETERMINE HOW HE FARES AS IBM'S CEO THEY ARE CAN HE QUICKLY MASTER A NEW INDUSTRY CAN HE TRANSFORM A STODGY CORPORATE CULTURE AND INSPIRE THE PEOPLE WHO MAKE UP IBM CAN HE REBUILD SHAREHOLDER VALUE BY SEPARATING THE WINNERS FROM THE LOSERS IN IBM'S TANGLED MASS OF OVERLAPPING BUSINESSES IN ONLY ONE OF THOSE AREAS TRANSFORMING CORPORATE CULTURE IS MR GERSTNER SEEN AS AN ODDSON FAVORITE TO SUCCEED IN THE OTHER TWO PEOPLE SAY HE FACES FORMIDABLE CHALLENGES AND UNLESS MR GERSTNER TRIUMPHS IN ALL THREE RESPECTS IBM'S HOPES OF A RECOVERY FROM ITS CURRENT TROUBLES ARE LIKELY TO BE DASHED MR GERSTNER'S FANS SAY HE IS A REMARKABLY QUICK STUDY IN ANY NEW INDUSTRY DATING BACK TO HIS DAYS AS A 28YEAROLD PARTNER IN THE MCKINSEY CONSULTING FIRM AT AMERICAN EXPRESS AND AT THE FOOD OPERATIONS OF RJR NABISCO MR GERSTNER WAS KNOWN AS A HANDSON MANAGER FREQUENTLY TRAVELING TO VISIT OPERATIONS AND REVIEWING DETAILS AS SMALL AS THE ADVERTISING CAMPAIGN FOR NABISCO'S FIG NEWTON BRAND COOKIE BUT MR GERSTNER LIMITED HIS CONTACT WITH RJR'S CIGARETTE BUSINESS HE SELDOM VISITED THE WINSTONSALEM NC HEADQUARTERS OF THE COMPANY'S RJ REYNOLDS TOBACCO UNIT FORMER EMPLOYEES SAY EVEN THOUGH CIGARETTES ACCOUNT FOR THREEQUARTERS OF RJR'S PROFITS MR GERSTNER ALSO DIDN'T CALL ON THE NATION'S LARGEST TOBACCO DISTRIBUTOR A STOP REGULARLY MADE BY TOP MANAGEMENT AT RJR'S MAIN RIVAL PHILIP MORRIS COS HE KEPT A DISTANCE SAYS TONY REGENSBURG A FORMER REYNOLDS WHOLESALER NOW A CONSULTANT TO THE TOBACCO INDUSTRY HE UNDERSTOOD THE NUMBERS BUT I DON'T THINK THAT HE HAD A FEEL FOR THE BUSINESS AS IT HAPPENED RJR STUMBLED THROUGHOUT 1992 IN TOBACCO IT STARTED BY HEAVILY PROMOTING ITS HIGHPRICED SLUMPING WINSTON AND SALEM BRANDS WITH LITTLE SUCCESS DETERMINED TO MAKE UP LOST GROUND REYNOLDS JUMPED INTO LOWPRICE CIGARETTES WITH A VENGEANCE AMONG ITS OFFERINGS WERE 69CENTAPACK CIGARETTES TO BE SOLD AT FILLING STATIONS UNDERCUTTING ITS OWN PREMIUM BRANDS REYNOLDS'S STRATEGY GENERATED VOLUME BUT HURT DOMESTIC TOBACCO EARNINGS MEANWHILE 1992 SHIPMENTS FOR WINSTON FELL MORE THAN 10 WHILE SALEM WAS OFF MORE THAN 11 ACCORDING TO JACK MAXWELL AN ANALYST WITH WHEAT FIRST SECURITIES IN RICHMOND VA THAT WEAK SHOWING HURT RJR'S STOCK WHICH CLOSED YESTERDAY AT 8 A SHARE OFF 125 CENTS WELL BELOW ITS HIGH OF 13 A SHARE IN 1991 TO SOME EXTENT RJR'S PROBLEMS PLAGUE THE ENTIRE TOBACCO INDUSTRY AND HAVE EVEN CAUGHT PHILIP MORRIS OFFGUARD BUT SOME BELIEVE A MORE ENGAGED CEO NEVER WOULD HAVE SANCTIONED REYNOLDS'S STAMPEDE INTO DISCOUNT CIGARETTES LOU DIDN'T HOLD UP THE YELLOW CAUTION FLAGS SAYS MR REGENSBURG HE LET THEM GET INTO IT TOO HEAVILY MR GERSTNER MAY BE FAR MORE MOTIVATED TO IMMERSE HIMSELF IN COMPUTERS HIS OLDER BROTHER RICHARD IS A FORMER TOP EXECUTIVE AT IBM AND MR GERSTNER HAS LONG KEPT AN IBM PS/2 PERSONAL COMPUTER IN HIS OWN OFFICE STILL HE IS HARDLY AN EXPERT SAY COMPUTER SPECIALISTS WHO HAVE WORKED CLOSELY WITH HIM I WOULDN'T DESCRIBE HIM AS A TECHNOLOGIST PER SE SAYS RAY STANLEY A MANAGER OF AMERICAN EXPRESS'S COMPUTER OPERATIONS FROM 1983 TO 1991 BUT I THINK HE HAD AN EXCELLENT GRASP OF WHAT TECHNOLOGY'S ALL ABOUT EVEN WITH COACHING FROM HIS SIBLING IT IS AN OPEN QUESTION HOW QUICKLY MR GERSTNER CAN KNOW IBM'S VAST PRODUCT AND SERVICES LINE WELL ENOUGH TO HELP GUIDE DECISIONS UNDERSTANDING THE FASTCHANGING COMPUTER INDUSTRY IS WIDELY REGARDED AS MUCH HARDER THAN MAKING SENSE OF FOOD AND TOBACCO A PROCESS THAT MR GERSTNER EARLY IN HIS RJR DAYS LIKENED TO DRINKING FROM A FIRE HOSE I DON'T KNOW HOW SOMEONE WHO DOESN'T HAVE A GRASP FOR THE NUANCES OF THE COMPUTING BUSINESS CAN COME IN AND COPE WITH THIS MEGATASK SAYS ROBERT SCHUESSLER DIRECTOR OF STRATEGIC SYSTEMS AT ROCKWELL INTERNATIONAL CORP WHAT DO YOU DO WITH THIS HUGE COMPANY AND NOT MAKE SOME OF THOSE TECHNOLOGY MISTAKES IBM MADE IN THE PAST AMONG THE MAJOR CHALLENGES FACING IBM RIGHT NOW ARE WHAT TO DO ABOUT ITS ERODING MAINFRAMECOMPUTER BUSINESS HOW TO SPEED UP ITS PRODUCT INNOVATION AND HOW TO STAND OUT AMONG CHEAP CLONE PERSONAL COMPUTERS THAT USE STANDARD PARTS TO SUCCEED AS HEAD OF IBM MR SCHUESSLER SAYS IT WOULD BE VERY IMPORTANT TO HAVE THAT INTUITIVE GRASP OF HAVING BEEN THERE AND DONE IT IN TACKLING IBM'S CORPORATE CULTURE MR GERSTNER CAN BE MORE CONFIDENT OF PLAYING TO HIS STRENGTHS BOTH AT AMERICAN EXPRESS AND RJR MR GERSTNER WAS KNOWN AS AN INSPIRATIONAL MANAGER WHO DEMANDED A LOT FROM HIS SUBORDINATES AND WON THEIR TRUST IBM BADLY NEEDS THE HELP IT IS A CLOSELY INBRED COMPANY THAT HAS HAD ONLY FIVE CHIEF EXECUTIVES BESIDES ITS FOUNDER IN ITS 79YEARHISTORY ALL CAREER IBMERS THE RESULT IS AN AWESOMELY THICK CULTURE OFTEN BEWILDERING TO THE FEW OUTSIDERS WHO PENETRATE THE COMPANY'S TOP ECHELONS IBM STAFFERS ROUTINELY USE INHOUSE SLANG TO SPEAK TO EACH OTHER ABOUT HIPOS NONCONCURRING AND WILD DUCKS TRANSLATION HIGHPOTENTIAL EMPLOYEES DISAGREEING AND ICONOCLASTS MR GERSTNER ALSO WILL INHERIT A WORK FORCE SHELLSHOCKED FROM THE PAST YEAR'S CRISES IBM THIS YEAR FINALLY ABANDONED ITS CHERISHED TRADITION OF NEVER LAYING OFF AN EMPLOYEE THE COMPANY HAS CUT MORE THAN 100000 JOBS IN THE LAST SEVEN YEARS BUT MANY BELIEVE ITS CURRENT WORK FORCE OF ABOUT 300000 IS STILL BLOATED THERE'S A LOT OF APPREHENSION THAT THIS GUY IS AN AXMAN THAT HE WON'T HAVE ANY LOYALTY TO IBM WORKERS SAYS LEE CONRAD A 20YEAR IBM VETERAN WHO ASSEMBLES AND TESTS PRINTERS AT A BIG ENDICOTT NY FACTORY PEOPLE HAVE BEEN ON THIS ROCKY ROAD NOW FOR A FEW YEARS AND I THINK THE CONCERN IS THAT THE BUMPS ARE GOING TO GET BIGGER IF EXPERIENCE IS ANY GUIDE MR GERSTNER WILL TRY TO LEAD HIS WORK FORCE BY A MIX OF GENTLE PERSONAL TOUCHES AND DEMANDING BUSINESS GOALS AT RJR NABISCO HE IS KNOWN FOR BEGINNING OUTOFTOWN SALES MEETINGS BY TELLING HIS AUDIENCE I'LL GO ANYWHERE TO BE WITH SALESMEN BUT HE ALSO SENT CHILLS THROUGH THE REYNOLDS TOBACCO SALES FORCE ONCE WHEN A SALESMAN ASKED HIM IF THE DIVISION HAD LIVED UP TO HIS EXPECTATIONS TO DATE NO ONE HAS EVER MET MY EXPECTATIONS MR GERSTNER COOLLY REPLIED WITH THE EXCEPTION OF MY WIFE BY HIS OWN STERN STANDARDS MR GERSTNER CAN'T BRAG ABOUT RJR'S STOCK PRICE PERFORMANCE DURING HIS TENURE AT THE COMPANY THE COMPANY'S STOCK IS UP ABOUT 60 OVER THE PAST FOUR YEARS BARELY KEEPING PACE WITH STOCKMARKET AVERAGES AND LAGGING BEHIND OTHER TOBACCO STOCKS THAT SOMEWHAT LACKLUSTER PERFORMANCE COMES EVEN THOUGH RJR'S CONTROLLING SHAREHOLDER THE LEVERAGED BUYOUT FIRM OF KOHLBERG KRAVIS ROBERTS & CO HAS FEVERISHLY FIDDLED WITH RJR'S BALANCE SHEET FOR FOUR YEARS IN AN ATTEMPT TO GET THE STOCK PRICE MOVING SOME BIG RJR HOLDERS SAY MR GERSTNER AND KKR HAVE SAID ALL THE RIGHT THINGS ABOUT SHAREHOLDER VALUE THEY JUST HAVEN'T SUFFICIENTLY DELIVERED IT'S A TOUGHER BUSINESS THAN THEY THOUGHT IT WAS SAYS ROBERT HEALY A PORTFOLIO MANAGER AT IDS FINANCIAL SERVICES WHICH OWNS A SIZABLE AMOUNT OF RJR STOCK YOU JUST CAN'T GO IN AND MILK THE TOBACCO BUSINESS FOR CASH FLOW ANYMORE AS MR GERSTNER TRIES TO REVIVE IBM'S STOCK PRICE HE MAY FIND SOME EERIE PARALLELS BETWEEN RJR'S CHIEF PRODUCT CIGARETTES AND IBM'S LEADING PRODUCT MAINFRAME COMPUTERS BOTH ARE HIGH PROFITMARGIN PRODUCTS WITH SLUMPING SALES THAT ARE SOLD MOSTLY TO LONGTIME CUSTOMERS WHO CAN'T BREAK THE HABIT AND BOTH ARE BEING BATTERED BY FASTGROWING COMPETITION FROM CHEAPER ALTERNATIVES AT IBM MR GERSTNER MIGHT HAVE A WIDER RANGE OF STRATEGIC CHOICES THAN HE ENJOYED AT RJR TO SOME EXTENT HE WOULD STILL CONFRONT THE LESSTHANIDEAL OPTIONS OF TRYING TO DEFEND THE OLD HIGHLY PROFITABLE BRANDS OR POURING MORE ENERGY INTO LESS PROFITABLE PRODUCTION OF CHEAPER MODELS BUT HE ALSO MIGHT BE ABLE TO LOOK AT WAYS TO SPIN OFF PIECES OF IBM'S OPERATIONS OR TO ACCELERATE THE COMPANY'S MOVE INTO MOREPROMISING COMPUTER SERVICE AREAS WHAT YOU REALLY HAVE TO DO WITH IBM NOW IS PORTFOLIO MANAGEMENT SAYS WILLIAM GRABE A VETERAN IBM MARKETING EXECUTIVE NOW A VENTURE CAPITALIST THAT'S WHAT THIS GUY IS GOOD AT