THE JUSTICE DEPARTMENT SAID IT HAS SUBSTANTIATED ALLEGATIONS OF BIAS AGAINST BLACK CUSTOMERS OF THE DENNY'S RESTAURANT CHAIN AND DENNY'S PARENT ACKNOWLEDGED THAT IT IS ABOUT TO REACH A SETTLEMENT OF FEDERAL CHARGES OF RACIAL DISCRIMINATION NEWS OF A 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 ALONG WITH UNSPECIFIED MONETARY DAMAGES DENNY'S PARENT THE TW SERVICES INC UNIT OF TW HOLDINGS INC SAID IN A STATEMENT FROM ITS HEADQUARTERS IN SPARTANBURG SC THAT IT HAS BEEN IN NEGOTIATIONS FOR SEVERAL MONTHS WITH THE JUSTICE DEPARTMENT TO SETTLE A PREVIOUSLY UNDISCLOSED AND YET UNFILED GOVERNMENT LAWSUIT CHARGING RACIAL DISCRIMINATION TW SERVICES SAID IT HAD AGREED IN PRINCIPLE ON A CONSENT DECREE THAT IT EXPECTS TO SIGN LATER THIS WEEK THE JUSTICE DEPARTMENT SAID IT WILL FORMALLY FILE ITS LAWSUIT AGAINST TW SERVICES AND DENNY'S IN FEDERAL COURT IN SAN FRANCISCO THE DEPARTMENT SAID ITS NEGOTIATIONS WITH TW SERVICES CONCENTRATED ON ENDING THE DISCRIMINATORY PRACTICES AND MANDATING A PERIOD DURING WHICH A FEDERAL COURT WILL MONITOR DENNY'S IT SAID THE CONSENT DECREE WILL COVER EMPLOYEE NOTIFICATION AND TRAINING SELFTESTING ADVERTISING RECORDKEEPING AND REPORTING REQUIREMENTS COLEMAN SULLIVAN A SPOKESMAN FOR TW SERVICES SAID THE COMPANY FROM THE BEGINNING HAS DENIED ANY RACIALLY DISCRIMINATORY PATTERN BUT HE ADDED ANY TIME SUCH BEHAVIOR IS BROUGHT TO OUR ATTENTION VERY STRONG ACTION INCLUDING TERMINATION OF EMPLOYEES HAS BEEN TAKEN IN THE CIVIL SUIT A GROUP OF 32 BLACK CUSTOMERS OF DENNY'S SUED THE COMPANY YESTERDAY IN FEDERAL COURT IN SAN JOSE CALIF ALLEGING THAT BLACKS IN CALIFORNIA DENNY'S RESTAURANTS ARE REQUIRED TO PREPAY FOR MEALS AND PAY COVER CHARGES WHILE WHITES ARE NOT THE SUIT ALSO ALLEGES THAT DENNY'S CHARGES BLACKS FOR BIRTHDAY MEALS GIVEN FREE TO OTHERS AND REFUSES SERVICE OR EVEN FORCIBLY REMOVES SOME BLACK PATRONS FROM DENNY'S RESTAURANTS THE CIVIL COMPLAINT WHICH SEEKS CLASSACTION STATUS ALSO CLAIMS THAT RACIAL EPITHETS WERE USED WHEN REFERRING TO BLACK CUSTOMERS AT DENNY'S FOR EXAMPLE THE COMPLAINT SAYS THAT WHEN AN EMPLOYEE AT A SAN JOSE DENNY'S RESTAURANT TOLD A MANAGER AMER'S EGGS NEEDED TO BE RECOOKED HE WAS TOLD TAKE IT TO THE NIGGERS AND IF THEY HAVE A COMPLAINT TELL THEM TO COME SEE ME THE SUIT ALSO SAYS DENNY'S MANAGERS USED RACIAL CODING USING THE TERM BLACKOUT TO SIGNAL EMPLOYEES WHEN TOO MANY BLACKS WERE IN A RESTAURANT DISTRICT MANAGERS EVENTUALLY INSTRUCTED STORE MANAGERS TO START CRACKING DOWN AND GET RID OF SOME OF THOSE BLACKOUTS THE COMPLAINT SAYS 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 THE RACIAL CODING ALLEGATIONS ARE REMINISCENT OF THOSE MADE IN A CIVIL RIGHTS SUIT SETTLED LAST NOVEMBER BY SAPERSTEIN MAYEDA LARKIN & GOLDSTEIN THE LAW FIRM THAT IS ALSO HANDLING THE DENNY'S SUIT PLAINTIFFS IN THAT CASE WHO HAD BEEN EMPLOYEES OF SHONEY'S INC ALLEGED THAT MANAGERS BLACKENED THE O IN THE WORD SHONEY'S TO INDICATE THE APPLICANT WAS AFRICANAMERICAN THE SHONEY'S CASE RESULTED IN A 105 MILLION SETTLEMENT TW SERVICES SAID THAT IT HAS A COMMITMENT TO TREATING ALL CUSTOMERS FAIRLY AND EQUITABLY BUT IT SEEMED TO TACITLY ADMIT TO SOME OF THE CHARGES BY CALLING THEM LATENIGHT PROCEDURES THAT HAD BEEN IMPLEMENTED BY A FEW DENNY'S CALIFORNIA RESTAURANTS TO ADDRESS SECURITY PROBLEMS THE COMPANY ALSO SAID THAT IT BEGAN A NEW PROGRAM LAST YEAR FOR MINORITY HIRING PROMOTION AND FRANCHISING AS WELL AS CULTURAL DIVERSITY TRAINING FOR ALL DENNY'S EMPLOYEES TW SERVICES SAID IT HAS BEEN ENGAGED IN GOODFAITH NEGOTIATIONS WITH SAPERSTEIN MAYEDA AND IS DISAPPOINTED THAT THE TWO SIDES HAVEN'T YET BEEN ABLE TO REACH SOME SORT OF SETTLEMENT GUY SAPERSTEIN A LAWYER FOR THE PLAINTIFFS DISTINGUISHED THE DENNY'S CASE FROM THE SHONEY'S ACTION WHERE THE COMPLAINTANTS WERE EMPLOYEES IN THE SHONEY'S CASE THE RACISM CAME RIGHT FROM THE TOP MR SAPERSTEIN SAID HOWEVER SAPERSTEIN MAYEDA LAWYERS SAY THE DENNY'S CASE MAY BE MORE REMARKABLE THAN SHONEY'S BECAUSE IT DEALS WITH MISTREATMENT OF THE MOST IMPORTANT ELEMENT OF ANY BUSINESS THE CUSTOMER THESE PRACTICES EVOKE THE BALD RACISM OF SOUTHERN LUNCH COUNTERS IN THE 1950S THE FIRM SAID IN A STATEMENT FORMER CALIFORNIA SUPREME COURT JUSTICE CRUZ REYNOSO NOW A LAW PROFESSOR AT THE UNIVERISITY OF CALIFORNIA AT LOS ANGELES SAID HE BELIEVES THE DENNY'S CASE IS THE FIRST PATTERN AND PRACTICE RACISM CASE INVOLVING A MAJOR PUBLIC ACCOMMODATION IN THE PAST 15 OR 20 YEARS HE SAID THAT IF THEY ARE TRUE THE ALLEGATIONS IN THE COMPLAINT MARK A VERY DISTURBING DEVELOPMENT SEPARATELY WAYNE DORN A FORMER DENNY'S ASSISTANT MANAGER IN SAN JOSE CALIF FILED A COMPLAINT YESTERDAY WITH THE FEDERAL EQUAL EMPLOYMENT OPPORTUNITY COMMISSION IN SAN FRANCISCO ALLEGING RACIAL DISCRIMINATION BY DENNY'S IN HIRING AND PROMOTION SAPERSTEIN MAYEDA ALSO REPRESENTS MR DORN DENNY'S SAID IT HADN'T YET SEEN THE COMPLAINT AND DIDN'T HAVE ANY IMMEDIATE COMMENT 9303250037 930325 BUSINESS BRIEF ASR INVESTMENTS CORP AFTER 4THPERIOD LOSS FIRM EXPECTS TO OMIT A DIVIDEND ASR INVESTMENTS CORP TUCSON ARIZ REPORTED A 214 MILLION FOURTHQUARTER LOSS AFTER A WRITEDOWN OF MORTGAGE ASSETS AND SAID IT DOESN'T EXPECT TO PAY A DIVIDEND IN THE FIRST QUARTER OF THIS YEAR THE LOSS EQUIVALENT TO 136 A SHARE COMPARES WITH NET INCOME OF 5 MILLION OR 32 CENTS A SHARE IN THE YEAREARLIER QUARTER ASR SAID IT TOOK THE WRITEDOWN OF 138 MILLION BECAUSE OF EXTREMELY FAST MORTGAGE PREPAYMENT RATES IN THE QUARTER JON A GROVE CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY BELIEVES PREPAYMENT RATES WILL REMAIN HIGH THIS YEAR LEADING TO UNFAVORABLE OPERATING RESULTS HE SAID ADDITIONAL CHARGES ARE POSSIBLE IF ACTUAL PREPAYMENT RATES EXCEED EXPECTATIONS OR FORECAST RATES RISE FURTHER FOR THE FULL YEARHE MORTGAGE INVESTMENT TRUST REPORTED A LOSS OF 649 MILLION OR 404 A SHARE COMPARED WITH NET OF 188 MILLION OR 125 A SHARE 9303250036 930325 BUSINESS BRIEFS EASTMAN KODAK CO AND CANON INC AGREED TO JOINTLY DEVELOP MICROFILMBASED PRODUCTS EXPANDING THE ALLIANCE BETWEEN THE TWO THAT ALREADY INCLUDES OFFICE PRODUCTS AND COPIERS MCKESSON CORP SAID SAFEWAY INC RENEWED ITS CONTRACT UNDER WHICH MCKESSON SUPPLIES PHARMACEUTICALS AND RELATED PRODUCTS TO THE GROCERY STORE CHAIN'S 378 PHARMACIES TERMS WEREN'T DISCLOSED DESIGNCRAFT INDUSTRIES INC COMPLETED THE PURCHASE OF 11 SLOAN'S SUPERMARKETS IN THE NEW YORK AREA FROM CLOSELY HELD CKMR CORP FOR ABOUT 85 MILLION QUALCOMM INC A DIGITAL WIRELESS COMMUNICATIONS COMPANY RECEIVED CONTRACTS VALUED AT 14 MILLION FOR ITS TWOWAY MOBILE SATELLITE COMMUNICATIONS AND TRACKING SYSTEM LANDS' END INC BOUGHT A MAJORITY STAKE IN TERRITORY AHEAD INC A CATALOG BUSINESS BASED IN SANTA BARBARA CALIF TERMS WEREN'T DISCLOSED DEVELOPERS DIVERSIFIED REALTY CORP AGREED TO BUY TWO SHOPPING CENTERS FROM WD DEVELOPMENT AIKEN SC FOR 157 MILLION 9303250035 930325 INTERNATIONAL BRIEF NESTLE SA NESTLE GROUP'S NET INCOME INCREASED 92 LAST YEAR NESTLE SA ANNOUNCED THAT ITS GROUP NET INCOME ROSE 92 TO 270 BILLION SWISS FRANCS 179 BILLION IN 1992 FROM 247 BILLION FRANCS A YEAR EARLIER LEADING IT TO PROPOSE A HIGHER DIVIDEND PAYOUT IT FURTHER ANNOUNCED A CAPITAL RESTRUCTURING THE SWISS FOOD COMPANY SAID IN ZURICH THAT IT WILL PROPOSE A 93 DIVIDEND INCREASE TO 2350 FRANCS FROM 2150 FRANCS A SHARE AND TO 47 FRANCS FROM 43 FRANCS PER BEARER PARTICIPATION CERTIFICATE EARLIER THE GROUP REPORTED A 79 SALES INCREASE TO 545 BILLION FRANCS THE BOARD WILL PROPOSE SEVERAL MEASURES TO THE GENERAL MEETING MAY 27 TO SIMPLIFY ITS CAPITAL STRUCTURE AND INCREASE MARKET LIQUIDITY OF NESTLE STOCK THE GROUP SAID NESTLE SAID THE MEASURES SHOULD MAKE THE SHARES MORE ATTRACTIVE TO FOREIGN INVESTORS IT PROPOSES TO ELIMINATE ITS BEARER SHARES AND BEARER PARTICIPATION CERTIFICATES RESULTING IN THE FUTURE EXISTENCE OF ONLY REGISTERED NESTLE SHARES 9303250034 930325 MARKETSCAN SUPERMARKET CHAINS CHOP PRICES TO KEEP RIVALS FROM CUTTING INTO THEIR BUSINESS BY KATHLEEN DEVENY SUPERMARKETS ARE BURSTING WITH BARGAINS TROUBLE IS SHOPPERS SEEM TOO BUSY PINCHING PENNIES TO NOTICE FACED WITH MOUNTING COMPETITION FROM SUCH FORMIDABLE NEW RIVALS AS WAREHOUSE CLUBS AND DEEPDISCOUNT DRUGSTORES SUPERMARKET CHAINS NATIONWIDE ARE SLASHING PRICES ON THOUSANDS OF ITEMS MANUFACTURERS MEANWHILE ARE TAKING AIM AT PRIVATELABEL COMPETITORS BY CUTTING THEIR PRICES AND LARGE SUPPLIES OF RAW MATERIALS HAVE DRIVEN DOWN THE PRICES OF SUCH ITEMS AS BACON ORANGES AND PEANUT BUTTER THERE'S A WAR IN THE STORE SAYS JOHN MCMILLIN A FOOD ANALYST WITH PRUDENTIAL SECURITIES INC WE'RE IN AN ENVIRONMENT WHERE THE RETAILERS AND THE BIG BRANDS ARE FIGHTING BACK A SURVEY OF RETAIL PRICES CONDUCTED EXCLUSIVELY FOR THE WALL STREET JOURNAL BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SHOWS THAT DESPITE REGIONAL DIFFERENCES CONSUMERS NATIONWIDE HAVE GENERALLY BENEFITED FROM RETAILERS' FOOD FIGHT INFORMATION RESOURCES TRACKED THE AVERAGE RETAIL PRICE OF A BASKET OF THREE DOZEN FREQUENTLY PURCHASED GROCERY ITEMS DURING THE 52 WEEKS ENDED FEB 7 PRICE WAS MEASURED AS TOTAL DOLLAR SALES DIVIDED BY TOTAL UNIT SALES AND DOES NOT INCLUDE SAVINGS FROM MANUFACTURERS' COUPONS AMONG THE ITEMS ON THE LIST PHILADELPHIA CREAM CHEESE CAMPBELL'S CREAM OF MUSHROOM SOUP AND MELITTA COFFEE FILTERS THE RESULTS WERE DRAMATIC NATIONWIDE THE AVERAGE PRICE CONSUMERS PAID FOR THE GROCERY ITEMS WAS 8220 DOWN 101 FROM THE YEAREARLIER PERIOD IN FACT PRICES FOR THE BASKET OF ITEMS DECLINED IN 56 OF 64 MARKETS SURVEYED BY INFORMATION RESOURCES THANKS PARTLY TO EXTENSIVE PRICE CUTS BY KROGER CO SHOPPERS IN THE CINCINNATI AREA SAW THE BIGGEST PRICE DECLINE IN THE RECENT YEAR WITH THE AVERAGE COST OF THE ITEMS DOWN 642 SIMILARLY FIERCE COMPETITION IN DETROIT AND LITTLE ROCK ARK HELPED PUSH DOWN PRICES FOR THE BASKET OF ITEMS BY 366 AND 308 RESPECTIVELY AGAINST THIS BACKDROP HEAR THE WORDS OF FOOD SHOPPER JULIE GIESEN A 28YEAROLD CHICAGOAN WHO WORKS IN ADVERTISING IT SEEMS TO ME THAT FOOD PRICES KEEP GOING STEADILY UP SHE SAYS MS GIESEN USUALLY SHOPS AT JEWEL OR CUB FOODS BUT OCCASIONALLY TREKS TO A WHOLESALE PRODUCE OUTLET IN SEARCH OF A BARGAIN PRODUCE PRICES SEEM REALLY OUT OF HAND TO ME SHE SAYS WHY THE DIFFERENCE BETWEEN CONSUMER PERCEPTION AND THE REALITY AT THE CHECKOUT SUPERMARKET EXECUTIVES CONJECTURE THAT CONSUMERS GRIPE ABOUT FOOD PRICES MAINLY BECAUSE THEY ARE FAMILIAR WITH THEM SHOPPERS VISIT GROCERY STORES ON A WEEKLY IF NOT DAILY BASIS AND ARE ACUTELY AWARE OF PRICE FLUCTUATIONS CONSUMERS ARE LESS LIKELY TO REMEMBER FOR EXAMPLE THE PRICE OF THE LAST CAR OR HOME APPLIANCE THEY PURCHASED JUDITH LANGER A CONSUMER BEHAVIOR EXPERT IN NEW YORK HAS ANOTHER EXPLANATION CONSUMERS STILL FEEL A TOTAL FINANCIAL SQUEEZE IN THEIR LIVES SHE SAYS MS LANGER NOTES THAT CONSUMERS REPEAT A MANTRA OF ECONOMIC WOES LACK OF JOB SECURITY SOARING HEALTHCARE COSTS AND THE INABILITY TO RETIRE COMFORTABLY I'M NOT HEARING ANYBODY SAY THEY THINK PRICES ARE COMING DOWN SHE SAYS BUT OBSERVED OR NOT THEY OFTEN ARE IN THE CASE OF KROGER THE CHAIN LAST YEAR SLASHED PRICES ON AS MANY AS 5000 ITEMS IN ITS SUPERMARKETS IN THE CINCINNATI AREA TO FEND OFF SUCH BUDGET RIVALS AS BIGG'S FOODS AND MEIJER INC ACCORDING TO THE INFORMATION RESOURCES SURVEY SHOPPERS IN THE SOUTHEASTERN REGION COMPRISING FLORIDA GEORGIA ALABAMA MISSISSIPPI AND SOUTH CAROLINA FOUND SOME OF THE BEST BARGAINS THE TOTAL TAB FOR THE SELECTED GOODS IN THIS REGION WAS THE NATION'S LOWEST 7884 DOWN 151 FROM THE PREVIOUS 52WEEK PERIOD SUPERMARKET ANALYSTS ATTRIBUTE THE DEALS TO A FIERCELY COMPETITIVE RETAILING ENVIRONMENT AND A GRADUAL MOVE IN RECENT YEARS BY WINNDIXIE STORES INC THE LARGEST CHAIN IN THE REGION TO CONVERT TO AN EVERYDAYLOWPRICE FORMAT LAST APRIL THE 1166STORE WINNDIXIE CHAIN CHOPPED PRICES ON MORE THAN 5000 GROCERY ITEMS AND REDUCED PRICES ON MORE THAN 1000 HEALTH AND BEAUTYCARE PRODUCTS IN SEPTEMBER PRICES MAY HAVE DECLINED EVEN FURTHER SINCE THE INFORMATION RESOURCES SURVEY IN SOME MARKETS IN THE SOUTHEAST EARLIER THIS YEAR WINNDIXIE REDUCED PRICES ON ANOTHER 5000 ITEMS IN SOME OF ITS STORES IN GEORGIA AND ALABAMA OUR OBJECTIVE IS TO BE THE LOWPRICED OPERATOR IN EACH AREA AND WE'RE CONTINUING TO MAKE ADJUSTMENTS SAYS MICKEY CLERC VICE PRESIDENT AND DIRECTOR OF ADVERTISING AT WINNDIXIE THIS IS A VERY COMPETITIVE INDUSTRY YET NOT ALL CONSUMERS WERE ABLE TO PARTICIPATE IN THE BARGAIN BONANZA DURING THE YEAR AMONG THE EIGHT MARKETS WHERE PRICES WERE FLAT OR INCREASED WERE LOS ANGELES THE BALTIMORE/WASHINGTON AREA AND PHOENIX SHOPPERS IN THE SAN DIEGO MARKET FELT THE BIGGEST PINCH WITH PRICES ON THE BASKET OF GOODS UP 140 THE TOTAL TAB FOR THE SELECTED ITEMS ALSO VARIED SIGNIFICANTLY BY REGION SHOPPERS IN CALIFORNIA THE MOST EXPENSIVE REGION ACCORDING TO THE SURVEY FORKED OVER 8877 FOR THE SAME LISTED ITEMS THAT COST SHOPPERS IN SOUTHEASTERN STATES 10 LESS SUPERMARKET OPERATORS IN THE SOUTHERN CALIFORNIA AREA SAY THE PRICE HIKES REFLECT INCREASING LABOR AND REALESTATE COSTS AS WELL AS SOARING EXPENSES RELATED TO WORKER COMPENSATION IN CALIFORNIA A SPOKESWOMEN FOR VONS COS ONE OF THE LARGEST SUPERMARKET CHAINS IN SOUTHERN CALIFORNIA ALSO POINTS OUT THAT VONS SUPERMARKETS HAVE BEEN OFFERING TO DOUBLE THE DISCOUNT OFFERED ON MANUFACTURERS' COUPONS IN ALL OF ITS STORES SINCE 1986 A DISCOUNT NOT INCLUDED IN THE DATA PROVIDED BY INFORMATION RESOURCES BUT SOME INDUSTRY EXPERTS SAY CALIFORNIA RETAILERS HAVE BEEN FOCUSING THEIR EFFORTS ON BOOSTING PROFITS RATHER THAN LURING CUSTOMERS FROM COMPETITORS WITH BARGAIN PRICES WHAT YOU'VE GOT IN SOUTHERN CALIFORNIA IS AN AREA WITH THREE OR FOUR LARGE PLAYERS CONTROLLING MORE THAN HALF THE MARKET SAYS EDWARD COMEAU AN ANALYST WITH SHEARSON LEHMAN BROTHERS INC IT'S BEEN IN EVERYBODY'S BEST INTEREST TO MAINTAIN STABILITY THAT MAY BE ABOUT TO CHANGE HOWEVER MR COMEAU SAYS THAT CALIFORNIA RETAILERS' FOCUS ON KEEPING PRICES HIGH AND THEIR MARGINS FAT HAS RESULTED IN DECLINING STORE SALES FOR MANY OPERATORS LAST MONTH THE LUCKY STORES INC DIVISION OF AMERICAN STORES COS ANNOUNCED PLANS TO REDUCE PRICES ON 2500 ITEMS IN SOME OF ITS STORES IN CALIFORNIA AND NEVADA THE MOVE MR COMEAU SAYS COULD SPARK A PRICE WAR AND AT THE VERY LEAST WILL RESULT IN SLOWING PRICE INCREASES FOR CONSUMERS IN THE REGION ALTHOUGH THE INFORMATION RESOURCES SURVEY FOCUSED EXCLUSIVELY ON CONSUMER PACKAGED GOODS GOVERNMENT STATISTICS CONFIRM THAT TOTAL FOOD PRICES INCREASED VERY LITTLE DURING 1992 THE TOTAL COST OF FOOD CONSUMED AT HOME INCHED UP A MERE 7 THE SMALLEST INCREASE IN 25 YEARS ACCORDING TO RALPH PARLETT AN ECONOMIST WITH THE US DEPARTMENT OF AGRICULTURE DURING THE SAME PERIOD THE PRICES CONSUMERS PAID FOR ALL GOODS AND SERVICES INCREASED 29 AS MEASURED BY THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX SMALL WONDER THAT MANY AMERICANS REPORT FEELING MORE PINCHED THAN EVER LAST YEAR REAL PERSONAL DISPOSABLE INCOME INCREASED 22 ACCORDING TO THE COMMERCE DEPARTMENT SLIGHTLY LESS THAN THE INCREASE IN CONSUMER PRICES INFLATION IS OUTPACING HOURLY EARNINGS FOR MOST CONSUMERS EXPLAINS STANLEY SHIPLEY SENIOR ECONOMIST AT SHEARSON LEHMAN BROTHERS PEOPLE ARE STARTING TO FEEL THEIR STANDARD OF LIVING DECREASE FIGURES SHOW THE AVERAGE RETAIL PRICE OF A BASKET OF 36 SELECTED GROCERY ITEMS DURING THE 52 WEEKS ENDED FEB 7 AND HOW IT CHANGED FROM THE YEAREARLIER PERIOD BASED ON AVERAGE RETAIL PRICE FOR SPECIFIC ITEMS DURING THE 52 WEEKS ENDED FEB 7 9303250033 930325 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIN CALLER ID RINGS UP GAINS DESPITE STATIC FROM STATE PRIVACY RULINGS CALLER IDENTIFICATION SERVICE WHICH SHOWS A CALLER'S NUMBER ON THE PHONE SCREEN OF THE PERSON CALLED IS NOW AVAILABLE IN PARTS OF 37 STATES DEMAND IS HIGH AMONG SAFETYMINDED CONSUMERS SAYS CONSULTANT PETER HAMPTON OF BOSTON'S YANKEE GROUP THE FIRM'S 1992 SURVEY FOUND THAT 55 OF US HOUSEHOLDS ARE INTERESTED IN THE SERVICE SINCE AUGUST NEVADA BELL HAS SIGNED UP 328 OF RESIDENTIAL CUSTOMERS WHICH IT CONSIDERS A GOOD RATE BUT ONLY FIVE STATES ALLOW CALLER ID WITHOUT CURBS TO EASE PRIVACY CONCERNS THE REST REQUIRE PROVIDERS TO OFFER CALLERS OFTEN FOR FREE SOME WAY TO BLOCK DISPLAY OF THEIR NUMBERS SUCH AS PUNCHING IN A CODE BEFORE CALLING ANOTHER DRAWBACK CALLER ID DOESN'T WORK ON LONG DISTANCE THE BABY BELLS SAY SUCH FLAWS DON'T DETER USERS WHO FIND IT HELPFUL TO KNOW IF A CALL IS BEING BLOCKED BUT MR HAMPTON SAYS SUCH DRAWBACKS ACCOUNT FOR A HIGH CANCELLATION RATE ALL BABY BELLS AS WELL AS OTHER PHONE COMPANIES OFFER THE SERVICE WHICH COSTS ABOUT 650 A MONTH HIV AND POSITIVE ON LIFE IS THE THEME OF A MAGAZINE IN THE PLANNING STAGES SEAN STRUB HEAD OF STRUB MEDIA GROUP A DATABASE MARKETER IN NEW YORK FOCUSING ON THE GAY SECTOR PROPOSES PUBLISHING A BROAD LIFESTYLE MAGAZINE FOR ALL HIVPOSITIVE PEOPLE NOT JUST GAYS WITH A WORKING NAME OF LIFEPLUS THE GLOSSY PUBLICATION WOULD SPOTLIGHT PROFILES OF SUCCESSFUL PEOPLE WITH THE VIRUS AND ARTICLES SUCH AS HOW TO PICK A DOCTOR OR WHEN TO TELL A DATE YOU ARE HIVPOSITIVE SAYS MR STRUB WHO HAS BEEN HIVPOSITIVE FOR SEVERAL YEARS IS THERE A MARKET FOR SUCH A MAGAZINE SUSAN DIAMOND A DALLAS INTERNIST WITH MANY HIV PATIENTS THINKS SO SHE NOTES PATIENTS ARE LIVING LONGER AND BETTER MY PATIENTS ARE STAYING AT WORK VERY CLOSE TO THE END THEY'RE TRAVELING THEY'RE SKIING WHILE NEW DRUGS GET TOP CREDIT ATTITUDE IS KEY SAYS DR DIAMOND INITIALLY THE MAGAZINE WOULD BE QUARTERLY DISTRIBUTED THROUGH AIDS GROUPS AND MEDICAL OFFICES TARGET ADVERTISERS LIVING BENEFITS INSURANCE FIRMS THE LIQUOR INDUSTRY LOOKS GOOD TO REVENUETHIRSTY STATES TOO SO FAR CIGARETTES SEEM SET TO BEAR ANY TAX BRUNT OF HELPING TO FINANCE A FEDERAL HEALTHCARE REVAMP BUT EVEN IF THE CLINTON ADMINISTRATION SPARES SPIRITS SOME 23 STATES HAVE THEIR OWN LIQUORCONSUMPTIONTAX BILLS PENDING AND TWO JUST PASSED MEASURES BUT MOST LIQUOR RETAILERS TAKE A WAITANDSEE ATTITUDE MANY LIKE SPEC'S LIQUORS IN HOUSTON SAY THEY MAY STOCK UP ONLY IF A TAX IS SET TO TAKE AFFECT A FEDERAL TAX RISE IN '91 DREW CONSUMER HOARDERS IN DECEMBER OF 1990 YOU DON'T WANT TO OVERREACT SAYS MICHAEL POLITZ OF D&M LIQUORS IN SAN FRANCISCO THE TRICK FOR RETAILERS IS TO AVOID GETTING STUCK WITH TOO MUCH TAXABLE FLOOR STOCK AFTER ANY HOARDING STOPS WHATEVER HAPPENS WITH TAXES RETAILERS SEE A DOWNTREND IN CONSUMPTION CONTINUING AS PEOPLE EITHER QUIT DRINKING TOTALLY OR BUY CHEAPER BRANDS AND SMALLER SIZES LIQUOR LOBBYISTS IN WASHINGTON STATE THIS WEEK ARGUED AGAINST A PLANNED TAX HIKE TO HELP FUND HEALTHCARE REFORM PAYING TOO MUCH FOR CONSUMER ELECTRONICS IS COMMON SAYS A STUDY FROM THE UNIVERSITY OF MARYLAND AT COLLEGE PARK USING CONSUMER REPORTS DATA FROM 1982 TO 1991 THE STUDY FOUND A BIG SWING FROM HIGHTOLOW PRICED ITEMS FOR INSTANCE THE AVERAGE CAMCORDER PRICE IN 1991 WAS 90621 HIGHER THAN THE TWO LOWEST PRICES KARAOKE MACHINES MAKE THE RECOMMENDED LIST OF NEW CATEGORY HEADINGS FOR THE 199394 YELLOW PAGES THE LIST WHICH REFLECTS TRENDS IN PRODUCTS AND SERVICES INCLUDES ASBESTOS CONSULTING AND TESTING AS WELL AS MASSAGETHERAPEUTIC ACCORDING TO THE YELLOW PAGES PUBLISHERS ASSOCIATION TAKING THE GREEN ROAD 17 TRAVEL COMPANIES AGREE TO DEVELOP GUIDELINES ON ISSUES SUCH AS RECYCLING AND AIR QUALITY UNDER THE AUSPICES OF THE WORLD TRAVEL & TOURISM COUNCIL AMONG FIRMS SIGNED UP ARE HERTZ AMERICAN AIRLINES BRITISH AIRWAYS AND INTERCONTINENTAL HOTELS AH SPRING TIME TO SKI LATE SNOWS BOLSTER PROSPECTS FOR SKI RESORTS APRIL LOOKS LIKE GOOD BUSINESS AND GOOD SKIING IN THE NORTHEAST AND WEST I EXPECT WE'LL GO WELL INTO MAY UNLESS WE HAVE A MAJOR CHANGE IN WEATHER SAYS GARY KIEDAISCH HEAD OF STOWE MOUNTAIN RESORTS IN VERMONT MOST COLORADO RESORTS EXTEND THE SEASON BY AT LEAST A WEEK OR PLAN TO AND THE STATE IS ON TRACK FOR A RECORD SEASON SKIING USUALLY STARTS TO WIND DOWN IN MIDAPRIL BUT THIS YEAR THE SNOW IS GOING TO LAST A LONG TIME SAYS PAM CRUICKSHANK OF OKEMO MOUNTAIN LUDLOW VT IN THE EAST THE BLIZZARD OF '93 CAPPED OFF A HEAVY DOSE OF SNOW THAT BEGAN ONLY IN JANUARY TOO LATE FOR THE HOLIDAYS WE'RE CATCHING UP FOR CHRISTMAS WHEN SKI CONDITIONS WERE LESS THAN IDEAL SAYS JAMES MILLER OF THE BRETTON WOODS AREA IN NEW HAMPSHIRE THE FIRST PART OF THE SEASON WAS TOUGH ECHOES FOSTER CHANDLER OF SKI LTD IN VERMONT NOW SUGARLOAF USA IN MAINE EYES ITS SECOND RECORD APRIL IN A ROW YEARTODATE SKIER VISITS ARE RUNNING ABOUT 25 AHEAD OF 1992 SAYS SUGARLOAF BRIEFS RENSSELAER POLYTECHNIC INSTITUTE IN TROY NY HOLDS A CARNIVAL THIS WEEKEND TO MARK THE 100TH ANNIVERSARY OF THE FERRIS WHEEL INVENTED BY ALUMNUS GEORGE WASHINGTON GALE FERRIS THE AMERICAN LUNG ASSOCIATION PUBLISHES A GUIDE ON PLANTINGS WITH MINIMAL POLLEN IT CALLS SNEEZELESS LANDSCAPING 9303250032 930325 BUSINESS BRIEF NATIONSBANK CORP ADOPTION OF AN FASB RULE TO YIELD 1STPERIOD GAIN NATIONSBANK CORP SAID THE ADOPTION OF A MANDATED ACCOUNTING CHANGE RELATED TO DEFERRED TAXES WILL RESULT IN A FIRSTQUARTER AFTERTAX GAIN OF ABOUT 200 MILLION OR 79 CENTS A SHARE NATIONSBANK OFFICIALS SAID THAT HAD THE COMPANY NOT BEEN REQUIRED TO ADOPT THE RULE NO 109 OF THE FINANCIAL ACCOUNTING STANDARDS BOARD IT WOULD HAVE RECOGNIZED THAT INCOME OVER THE FULL YEAR OF 1993 INSTEAD OF IN A SINGLE QUARTER THE ACCOUNTING CHANGE DISCLOSED IN NATIONSBANK'S ANNUAL REPORT PERTAINS TO OPERATING LOSS AND ALTERNATIVE MINIMUM TAX CREDIT CARRYFORWARDS THE COMPANY IN CHARLOTTE NC EXPECTS TO REPORT FIRSTQUARTER RESULTS APRIL 19 IN THE FIRST QUARTER OF 1992 NATIONSBANK EARNED 310 MILLION OR 128 A SHARE IN ITS ANNUAL REPORT NATIONSBANK SAID IT WILL ADOPT FASB 106 IN THE FIRST QUARTER OF 1993 THAT RULE COVERS ACCOUNTING FOR RETIREE HEALTH BENEFITS THE COMPANY SAID ITS OBLIGATION IS ESTIMATED TO BE ABOUT 140 MILLION WHICH WILL BE RECOGNIZED AS A CHARGE TO EARNINGS OVER 20 YEARS 9303250031 930325 INTERNATIONAL BRIEF JARDINE MATHESON HOLDINGS LTD HONG KONG COMPANY SAYS 1992 EARNINGS WERE UP 17 JARDINE MATHESON HOLDINGS LTD A HONG KONG CONGLOMERATE REPORTED THAT PROFIT ROSE 17 TO A RECORD US3168 MILLION IN 1992 PERSHARE EARNINGS ROSE 11 TO 57 CENTS FROM 514 CENTS SALES WERE UP 99 TO 790 BILLION FROM 719 BILLION THE DIVIDEND WAS RAISED 14 TO 187 CENTS FROM 164 CENTS CHAIRMAN HENRY KESWICK STRESSED THAT THE GROUP'S FINANCIAL STRENGTH PROVIDES A SECURE FOUNDATION FOR THE FUTURE HE NOTED THAT WITH RENEWED POLITICAL UNCERTAINTY IN HONG KONG AND RECOVERY IN SOME WESTERN ECONOMIES AND JAPAN LIKELY TO BE SLOW IT MAY NOT BE EASY IN 1993 TO MATCH THE GROWTH OF RECENT YEARS JARDINE POSTED AN EXTRAORDINARY GAIN OF 307 MILLION BOOSTING NET INCOME ATTRIBUTABLE TO SHAREHOLDERS TO 3475 MILLION THE EXTRAORDINARY GAIN CAME FROM DAIRY FARM INTERNATIONAL LTD'S TRANSFER OF MANUFACTURING INTERESTS TO A NEW JOINT VENTURE WITH NESTLE SA 9303250030 930325 WHAT'S NEWS BUSINESS AND FINANCE BAXTER INTERNATIONAL TENTATIVELY AGREED TO PLEAD GUILTY IN A THREEYEAR FEDERAL INVESTIGATION INTO HOW THE HOSPITAL SUPPLIER GOT OFF THE ARAB BLACKLIST OF COMPANIES THAT DO BUSINESS WITH ISRAEL PEOPLE FAMILIAR WITH THE ACCORD SAID AN ANNOUNCEMENT COULD COME AS EARLY AS TODAY THE SENATE REJECTED A REPUBLICAN MOVE TO STRIP FROM CLINTON'S FIVEYEAR BUDGET PLAN AN INCREASE IN TAXES PAID BY AFFLUENT SOCIAL SECURITY RECIPIENTS THE 5247 VOTE CLEARED THE WAY FOR PASSAGE TODAY OF THE DEFICITCUTTING PLAN THE TW HOLDINGS UNIT THAT OWNS THE DENNY'S RESTAURANT CHAIN SAID IT IS CLOSE TO SETTLING US CHARGES OF RACIAL DISCRIMINATION AGAINST CUSTOMERS SEPARATELY 32 BLACK CUSTOMERS IN CALIFORNIA SUED THE COMPANY ALLEGING IT FORCES BLACKSBUT NOT WHITESTO PREPAY FOR MEALS AND PAY COVER CHARGES IBM'S STOCK SANK 3125 TO 51125 IN THE WAKE OF A GLOOMY REPORT FOR THE MAINFRAME COMPUTER MARKET AND THE THE EMERGENCE OF RJR NABISCO CHAIRMAN LOUIS GERSTNER AS IBM'S APPARENT CHOICE TO BE ITS NEW CEO IBM CUSTOMERS VOICED CONCERN ABOUT HIS LACK OF COMPUTERINDUSTRY EXPERIENCE STOCK AND BOND PRICES SLID AMID RENEWED WORRIES ABOUT RUSSIA'S POLITICAL TENSIONS WHILE THE DOLLAR ROSE THE DOW JONES INDUSTRIALS FELL 1648 POINTS BOND PRICES LOST MORE THAN 5/8 POINT MERRILL LYNCH IS SHAKING UP ITS MANAGEMENT AS IT PREPARES TO FACE THE CHALLENGE OF NEWLY FORMED BROKERAGE GIANT SMITH BARNEY SHEARSON USAIR SAID SUPERVISORS AT TWO OF ITS MAINTENANCE FACILITIES FALSIFIED AIRCRAFT REPAIR RECORDS THE CARRIER SAID IT IS COOPERATING WITH AN FAA PROBE CONTINENTAL AIR'S PRESIDENT LEWIS JORDAN WAS FORCED TO QUIT IN AN APPARENT CLASH WITH THE CARRIER'S CEO SALES OF USMADE CARS AND LIGHT TRUCKS IN MIDMARCH WERE LARGELY UNCHANGED FROM THE PRECEDING 30 DAYS AUTO ANALYSTS AND DEALERS BLAMED BAD WEATHER IN PARTS OF THE COUNTRY ORDERS FOR DURABLE GOODS ROSE 22 IN FEBRUARY RESUMING AN UPWARD TREND AFTER FALLING 23 IN JANUARY BUT MUCH OF LAST MONTH'S GAIN CAME FROM TRANSPORTATION ORDERS WHICH VARY WIDELY FROM MONTH TO MONTH SEVEN MAJOR PHARMACEUTICAL COMPANIES LAUNCHED A 2 MILLION PUBLIC RELATIONS CAMPAIGN TO COUNTER EFFORTS BY THE WHITE HOUSE TO SHARPLY LIMIT INCREASES IN PRESCRIPTION DRUG PRICES DAIMLERBENZ IS DECLARING 245 BILLION IN HIDDEN RESERVES AS AN EXTRAORDINARY GAIN FOR 1992 AS PART OF A BID TO BECOME THE FIRST GERMAN COMPANY TO LIST ITS SHARES ON THE BIG BOARD SHORT INTEREST CLIMBED 44 TO A RECORD AMONG OVERTHECOUNTER STOCKS IN THE LATEST MONTHLY PERIOD ALCOA DOUBLED THE PAY OF ITS CHAIRMAN PAUL O'NEILL TO 1202000 IN 1992 A YEAR IN WHICH THE ALUMINUM MAKER INCURRED A 114 BILLION LOSS THE SUPREME COURT RULED 63 THAT CINCINNATI VIOLATED THE FIRST AMENDMENT WHEN IT SAID COMMERCIAL CIRCULARS COULDN'T BE DISTRIBUTED IN CURBSIDE RACKS BUT ORDINARY NEWSPAPERS COULD BONDS LEHMAN BROTHERS TREASURY INDEX 504486 OFF 2622 COMMODITIES OIL 2024 A BARREL UP 21 CENTS DOW JONES FUTURES INDEX 12928 OFF 087 SPOT INDEX 12703 UP 018 DOLLAR 11760 YEN UP 165 16375 MARKS UP 00070 9303250029 930325 INTERNATIONAL BRIEF SIEMENS AG SALES AT UNIT OF GERMAN FIRM SLID 6 FOR 5MONTH PERIOD SIEMENSNIXDORF INFORMATIONSSYSTEME AG A UNIT OF GERMANY'S SIEMENS AG OF GERMANY SAID SALES IN THE FIRST FIVE MONTHS OF THE YEAR THAT BEGAN OCT 1 WERE 45 BILLION MARKS 276 BILLION DOWN 6 FROM A YEAR EARLIER SPEAKING AT A NEWS CONFERENCE SNI PRESIDENT HANSDIETER WIEDIG ATTRIBUTED THE FALL ALMOST EXCLUSIVELY TO OUR INTERNATIONAL BUSINESS IN GERMANY WE HAVE TODATE VIRTUALLY MAINTAINED THE HIGH GROWTH RATE OF SALES ATTAINED IN FISCAL 1992 HE SAID GERMAN SALES AT SNI INCREASED 11 IN THE YEAR ENDED SEPT 30 SNI PREVIOUSLY POSTED A GROUP NET LOSS OF 513 MILLION MARKS 3146 MILLION IN FISCAL 1992 ON SALES OF 13 BILLION MARKS MR WIEDIG SAID THE TOTAL NUMBER OF EMPLOYEES AT SNI FELL BY SOME 1700 IN THE FIRST FIVE MONTHS OF THE CURRENT YEAR TO 47200 9303250028 930325 WHO'S NEWS RELIABILITY'S HANLON RESIGNS AS CHAIRMAN AND CHIEF EXECUTIVE HOUSTON RELIABILITY INC WHICH RECENTLY ANNOUNCED SHARP OPERATING CUTBACKS AFTER AN UNPROFITABLE FOURTH QUARTER SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS RESIGNED EVERETT HANLON 62 YEARS OLD LEFT TO PURSUE PERSONAL OBJECTIVES THE COMPANY SAID BUT WILL REMAIN A DIRECTOR HE COULDN'T BE REACHED FOR COMMENT HE WILL BE SUCCEEDED AS CHIEF EXECUTIVE BY LARRY EDWARDS 51 THE COMPANY'S PRESIDENT AL LEDERER JR 79 WAS NAMED CHAIRMAN UNTIL HIS TERM AS A DIRECTOR EXPIRES AT THE END OF APRIL ON MARCH 12 THE ELECTRONICS MAKER SAID IT RECORDED A FOURTHQUARTER LOSS OF 27 MILLION OR 63 CENTS A SHARE VS A LOSS OF 13 MILLION OR 31 CENTS A SHARE A YEAR EARLIER THE FOURTHQUARTER LOSS WAS DISAPPOINTING BECAUSE IT CAME ON THE HEELS OF TWO SUCCESSIVE PROFITABLE QUARTERS AS A RESULT THE COMPANY SAID IT WOULD HAVE TO REDUCE ITS OPERATIONS IN SINGAPORE AND CUT ITS WORK FORCE IN HOUSTON BY 10 TO 180 EMPLOYEES 9303250027 930325 BUSINESS BRIEF LAMSON & SESSIONS CO FIRM EXPECTS TO POST LOSS FOR FIRST QUARTER FULL YEAR LAMSON & SESSIONS CO EXPECTS TO REPORT A LOSS OF 19 CENTS TO 20 CENTS A SHARE FOR THE FIRST QUARTER PARTLY BECAUSE OF UNUSUALLY SEVERE WEATHER SAID JOHN B SCHULZE CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CLEVELAND ELECTRICAL CONSTRUCTION AND TRANSPORTATION PRODUCTS CONCERN HAD A LOSS FROM OPERATIONS OF 35 MILLION OR 26 CENTS A SHARE A YEAR EARLIER NET LOSS INCLUDING UNUSUAL CHARGES WAS 303 MILLION OR 230 A SHARE THE COMPANY ALSO EXPECTS TO REPORT A LOSS FOR ALL OF 1993 MR SCHULZE SAID BUT THE LOSS WILL BE SMALLER THAN LAST YEAR'S LOSS BEFORE NONRECURRING CHARGES OF 98 MILLION OR 74 CENTS A SHARE NET LOSS FOR 1992 WAS 463 MILLION OR 351 A SHARE ON SALES OF 2838 MILLION BAD WEATHER HAMPERED ALL TYPES OF CONSTRUCTION DURING FEBRUARY AND MARCH WHICH WILL REDUCE SALES FOR THE QUARTER BELOW THE 721 MILLION OF A YEAR AGO MR SCHULZE SAID 9303250026 930325 INTERNATIONAL BRIEF VEBA AG PROFIT FELL BY 17 IN 1992 OIL CHEMICAL LINES CITED POOR RESULTS FROM ITS OIL AND CHEMICAL OPERATIONS PULLED VEBA AG'S 1992 PROFIT 17 LOWER BUT CHAIRMAN KLAUS PILTZ SAID HE IS HOPEFUL HE CAN PREVENT A FURTHER DROP IN 1993 DESPITE THE GLOOMY ECONOMIC OUTLOOK AT A NEWS CONFERENCE MR PILTZ SAID THAT WHILE THE US ECONOMY IS ONCE AGAIN GROWING THIS WILL BE MORE THAN OFFSET BY THE DEEPENING RECESSION IN VEBA'S HOME MARKET GERMANY DESPITE THE DECLINE VEBA WILL MAINTAIN ITS DIVIDEND UNCHANGED FROM THE 1991 LEVEL AT 12 MARKS FOR 1992 EARNINGS PER SHARE FELL TO 262 MARKS FROM 29 MARKS WHILE SALES INCREASED 10 TO 654 BILLION MARKS FROM 595 BILLION MARKS IN 1991 9303250025 930325 ECONOMIC ROADS INDONESIA IS DIVIDED OVER HOW TO COMPETE LOW COST OR HIGH TECH TRYING TO JOIN ASIA'S TIGERS' IT CAN SEW JEANS CHEAPLY OR TRY ADVANCED GOODS SUHARTO'S MAN HAS A VISION' BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL BEKASI INDONESIA ISLAMIC FOLK MUSIC DROWNS OUT THE RATTLE OF SEWING MACHINES AT PT TONG YANG INDONESIA A SPORTSHOE FACTORY IN THE VERDANT FLATLANDS OUTSIDE JAKARTA MORE THAN 5000 WOMEN IN BLUE COTTON BLOUSES BAREFOOT ON THE FACTORY'S POLISHED TILE FLOOR CHURN OUT HALF A MILLION PAIRS OF REEBOK PUMA AND ETONIC SHOES A MONTH THE 60 AVERAGE MONTHLY WAGE IS BARELY AN EIGHTH OF WHAT THE FACTORY'S SOUTH KOREAN OWNER PAYS WORKERS BACK HOME ONE HUNDRED MILES AWAY IN A WEST JAVA VALLEY RINGED BY DORMANT VOLCANOES WORKERS PRODUCE A DIFFERENT VERSION OF INDONESIA'S FUTURE IN HUGE HANGARS ON THE SITE OF A FORMER MILITARY GOLF COURSE THEY ARE BUILDING AIRCRAFT FOR A STATE COMPANY THE NEWEST MODEL A PASSENGER AIRPLANE WAS DESIGNED ON THE SAME COMPUTERS AND BY SOME OF THE SAME ENGINEERS EMPLOYED BY THE US TO MAKE THE B2 STEALTH BOMBER LONG AN ECONOMIC LAGGARD THE WORLD'S FOURTHMOSTPOPULOUS NATION IS MAKING STRIDES TOWARD THE SAME ECONOMIC DYNAMISM THAT MARKS MANY OF ITS ASIAN NEIGHBORS BUT INDONESIA IS RIVEN BY A TOUGH ECONOMIC CHOICE SHOULD IT FIRST BECOME A LOWWAGE EXPORTER OF LABORINTENSIVE PRODUCTS AS OTHER ASIAN COUNTRIES DID OR CAN IT LEAP AHEAD TO CAPITALINTENSIVE HIGHTECHNOLOGY GOODS AS NEARBY NEWLY INDUSTRIALIZED NATIONS ARE DO YOU THINK INDONESIA'S ECONOMY CAN SURVIVE AND DEVELOP WITHOUT USING TELEPHONES COMPUTERS HELICOPTERS AIRPLANES TELEVISION AND ROLLING STOCK ASKS BJ HABIBIE THE COUNTRY'S 56YEAROLD MINISTER OF STATE FOR RESEARCH AND TECHNOLOGY A VOLUBLE EXENGINEER WHO IS STAKING HIS ASCENDANT CAREER ON DEVELOPING SUCH INDUSTRIES THE ANSWER IS OBVIOUSLY NO NOT SO FAST SAY RIVAL TECHNOCRATS AND ECONOMISTS THEY SAY THE COUNTRY MUST LEARN TO WALK IN THE SHOES IT MAKES BEFORE IT TRIES TO FLY IN ITS OWN AIRPLANES WE DON'T HAVE THE RESOURCES TO LEAP AHEAD SAYS ALI WARDHANA A 65YEAROLD GOVERNMENT ADVISER AND FORMER FINANCE MINISTER ULTIMATELY YOU WILL GET THERE BUT THE PROBLEM IS DO WE HAVE TO DO IT NOW FOR INDONESIA'S LARGELY AGRARIAN POPULATION OF 182 MILLION MAKING THE RIGHT CHOICES WILL BE CRITICAL ITS RECENT SOURCE OF WEALTH IS DRYING UP BY THE END OF THE DECADE BY JAKARTA'S OWN MATH INDONESIA WILL BECOME THE FIRST MEMBER OF THE ORGANIZATION OF PEROLEUM EXPORTING COUNTRIES TO IMPORT MORE OIL THAN IT EXPORTS MOREOVER ITS POLITICAL FUTURE IS UNSETTLED SUHARTO THE 71YEAROLD PRESIDENT BEGAN A SIXTH TERM THIS MONTH STILL CLUTCHING THE POWER HE WON HELPING TO SUPPRESS A BLOODY COMMUNIST COUP ATTEMPT IN 1965 HE HAS NO CLEAR SUCCESSOR INDONESIANS ARE OPTIMISTIC ABOUT THE TRANSITION THE PRESIDENT HAS SHOWN IN THE PAST THAT HE IS PRAGMATIC SAYS MARI PANGESTU A YOUNG ECONOMIST AT THE PRIVATE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES WE HAVE TOO MUCH AT STAKE TO RISK BIG DEVIATIONS MUCH OF WHAT IS NOW AT STAKE WAS BUILT UP ONLY DURING THE PRESIDENT'S LATEST FIVEYEAR TERM SPURRED BY A POLICY OF DEREGULATION GROWTH AVERAGED NEARLY 7 A YEAR INVESTMENT FLOWED IN FROM ABROAD AND AFTER FOREIGNERS WERE ALLOWED TO BUY INDONESIAN SHARES IN 1989 THE STOCK MARKET CLIMBED STEEPLY THE COUNTRY'S DEPENDENCE ON OIL FOR TWOTHIRDS OF ITS FOREIGNEXCHANGE EARNINGS WAS REVERSED TODAY EXPORTS OF NONOIL GOODS EVERYTHING FROM BARBIE DOLLS TO COMPUTERS ACCOUNT FOR TWOTHIRDS OF HARDCURRENCY RECEIPTS BUOYED BY THAT SUCCESS AN INDONESIAN CONSUMER CLASS MILLIONS STRONG MARKETERS SAY IS ON THE MARCH NEARLY TWOTHIRDS OF JAKARTA HOUSEHOLDS NOW HAVE COLOR TELEVISION SETS UP FROM ONLY ONE IN FOUR A DECADE AGO AMERICAN EXPRESS CO COUNTED 40000 CARD HOLDERS IN 1991 QUADRUPLE THE NUMBER OF FIVE YEARS EARLIER THE NUMBER OF PASSENGER CARS REGISTERED IN THE CAPITAL GREW AT AN ANNUAL RATE OF MORE THAN 40 DURING THE SAME PERIOD AT DUSK ALONG PASAR BARU A BUSY JAKARTA SHOPPING STREET CROWDS JOSTLE IN A DEPARTMENT STORE IN THE MATAHARI RETAILING CHAIN EACH DAY MORE THAN 20000 PEOPLE PASS THROUGH THE STORE BUYING EVERYTHING FROM INDONESIANMADE LEE JEANS TO ELIZABETH ARDEN COSMETICS WE'RE IN TOUCH WITH THE WORLD SAYS LOO OI LEE AN ADVISER TO THE MATAHARI CHAIN MUCH OF THE CREDIT FOR NURTURING INDONESIA'S ECONOMY GOES TO A TEAM OF USEDUCATED TECHNOCRATS KNOWN HERE AS THE BERKELEY MAFIA BECAUSE MANY OF THEM SUCH AS FORMER FINANCE MINISTER MR WARDHANA STUDIED IN THE 1950S AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY FOR YEARS OLIGOPOLIES SOME INVOLVING MR SUHARTO'S SIX CHILDREN AND STATERUN INDUSTRY DOMINATED MUCH OF THE COUNTRY'S NONOIL ECONOMY AFTER OIL PRICES SPIRALED DOWN IN 1983 THE TECHNOCRATS RECOMMENDED UNFETTERING THE COUNTRY'S TIGHTLY CONTROLLED ECONOMY MR SUHARTO AGREED THOUGH HE LAID DOWN ONE CONDITION THAT THE PROCESS NEVER BE CALLED LIBERALIZATION A PHRASE HE ASSOCIATED WITH JAKARTA'S COMMUNISTLEANING GOVERNMENTS OF THE 1950S BY ANY NAME THOUGH THE PLAN WORKED THE ECONOMY RACED SO FAST AT TIMES THAT THE GOVERNMENT OCCASIONALLY HAD TO STEP ON THE BRAKES LAST YEAR THE CENTRAL BANK SLASHED MONEY SUPPLY GROWTH YET THE ECONOMY STILL GREW NEARLY 6 MANY VIEW GROWTH AS A MEASURE OF PROGRESS IN A CONTEST TO CATCH UP WITH OTHER ASIAN NATIONS IF YOU WANT A BIGGER SHARE OF THE WORLD MARKET YOU HAVE TO BE COMPETITIVE SAYS VETERAN TECHNOCRAT RADIUS PRAWIRO WHO WAS ECONOMIC COORDINATION MINISTER UNTIL THIS MONTH AND IF YOU WANT TO BE COMPETITIVE YOU HAVE TO ROLL BACK ALL OBSTACLES MOST TECHNOCRATS ARE PLEASED WITH THE STEPBYSTEP PROGRESS SO FAR SO GOOD REMARKS MUHAMAD SADLI A 70YEAROLD ECONOMIST AND FORMER MINISTER WHO STUDIED AT BERKELEY OUR PERFORMANCE HAS NOT BEEN AS BRILLIANT YET AS MALAYSIA'S OR THAILAND'S BUT IT'S NOT AS BAD AS THE PHILIPPINES' BUSINESSPEOPLE ARE ALSO SATISFIED SETIAWAN ACHMAD A TAN BROADFACED 42YEAROLD IS A BENEFICIARY OF DEREGULATION HE WAS RUNNING A TRADING COMPANY IN THE 1970S WHEN HE DECIDED TO START A PINEAPPLE PLANTATION ON THE ISLAND OF SUMATRA DESPITE ITS EQUATORIAL CLIMATE INDONESIA THEN WAS AN AGRICULTURAL IMPORTER IT EVEN HAD TO BUY RICE WHEN HIS 17290ACRE PLANTATION OPENED IN 1984 MR ACHMAD DISCOVERED THAT REGULATIONS PREVENTED FOREIGN SHIPS FROM PICKING UP HIS PINEAPPLES AT THE NEAREST PORT AND REQUIRED HIM TO BUY TIN FOR CANNING FROM A MONOPOLY IT WAS VERY TOUGH HE SAYS BUT A GOVERNMENT MINISTER WANTED TO INCREASE EXPORTS AND THE PORT RESTRICTIONS AND BAN ON TIN IMPORTS WERE AMONG THE REGULATIONS LIFTED IN THE MID1980S MR ACHMAD'S COMPANY PT GREAT GIANT PINEAPPLE COY SAW ITS EXPORTS OF CANNED AND FRESH PINEAPPLE SOAR FROM HALF A MILLION CASES IN 1985 TO MORE THAN FIVE MILLION CASES VALUED AT 75 MILLION LAST YEAR MAKING IT THE WORLD'S NO 3 PRODUCER YET ECONOMIC REFORM HAS ITS DOWNSIDE A LOOSENING OF BANKING REGULATIONS FOR INSTANCE SPAWNED MORE THAN 100 NEW BANKS MANY OF THEM BACKED BY FAMILYRUN COMPANIES HOPING TO MAKE QUICK PROFITS FEW DID IN THE MOST DRAMATIC REVERSAL OF FORTUNES OF THE REFORM PERIOD THE FAMILY THAT CONTROLLED INDONESIA'S LEADING BLUECHIP COMPANY AUTO MAKER PT ASTRA INTERNATIONAL HAD TO SELL ITS ASTRA STAKE TO COVER LOSSES IN A FAILED BANK BANK SUMMA CREATED BY THE ELDER SON OF ASTRA'S 70YEAROLD FOUNDER WILLIAM SOERYADJAYA RAN INTO DIFFICULTIES AND WAS SHUT DOWN BY THE GOVERNMENT LAST DECEMBER THE FAMILY'S PROBLEMS MAY HAVE LONGERTERM CONSEQUENCES FOR THE COUNTRY'S ECONOMIC DEVELOPMENT ASTRA WAS A DARLING OF THE JAKARTA STOCK EXCHANGE AND THE RECIPIENT OF MANY FOREIGN LOANS THE CARS AND TRUCKS IT MAKES WERE DESIGNED AND BUILT IN PARTNERSHIP WITH JAPAN'S TOYOTA MOTOR CORP FOREIGN INVESTORS SAY THEY BACKED ASTRA BECAUSE OF ITS INDEPENDENCE AND FINANCIAL INTEGRITY IF SUCH A PREEMINENT COMPANY COULD GET INTO TROUBLE NEWLY SUSPICIOUS INVESTORS REASON SO MIGHT LESS PRESTIGIOUS CONCERNS ALREADY FOREIGN LOAN RATES HAVE GONE UP BUSINESSPEOPLE AND FOREIGN BANKERS PRIVATELY SAY IT WILL TAKE SOME TIME TO REBUILD CONFIDENCE CONCEDES SOFJAN WANANDI THE CHAIRMAN OF GEMALA GROUP ONE OF A CONSORTIUM OF COMPANIES THAT BOUGHT MUCH OF THE SOERYADJAYA STAKE SUCH TROUBLES HAVE BOLSTERED THE CAUSE OF POLICY MAKERS WHO MIGHT BE CALLED ECONOMIC NATIONALISTS THEY WANT TO EMPHASIZE THE DEVELOPMENT OF STRONG DOMESTIC INDUSTRIES NOT DEREGULATION AT THE MOMENT THEIR STAR IS RISING ON MARCH 17 MR SUHARTO REMOVED TWO OF THE COUNTRY'S BESTKNOWN TECHNOCRATS MR PRAWIRO THE ECONOMICS MINISTER AND JB SUMARLIN THE FINANCE MINISTER IN FAVOR OF OFFICIALS WHO AREN'T CONTENT TO WAIT FOR GRADUAL ECONOMIC REFORM THE BEST KNOWN OF THE ASCENDANT GENERATION IS MR HABIBIE THE MINISTER OF RESEARCH AND TECHNOLOGY CONSIDERED ONE OF MR SUHARTO'S CLOSEST ADVISERS AS THE HEAD OF SEVERAL STATE SCIENTIFIC AND INDUSTRIAL COUNCILS HE REPORTS DIRECTLY TO THE PRESIDENT THOUGH HE INSISTS HE HAS NO BETTER ACCESS THAN ANY OTHER MINISTER A ONETIME AIRCRAFT ENGINEER FOR THE GERMAN AEROSPACE COMPANY MESSERSCHMITT BOELKOW BLOHM GMBH MR HABIBIE HAS FILLED HIS OFFICE WITH MORE THAN 100 MODELS OF AIRCRAFT FROM AIRBUS CARGO PLANES TO AEROFLOT PASSENGER JETS THAT HE COLLECTED ON TRAVELS AROUND THE WORLD CALENDARS SHOWCASING AIRPLANES ADORN HIS SPACIOUS HOME IN A LEAFY JAKARTA SUBURB MR HABIBIE BOASTS ABOUT LAUNCHING SATELLITES USING BIOTECHNOLOGY TO CLEAN DRINKING WATER AND PLANNING A DOZEN NUCLEAR POWER PLANTS BUT HIS GREATEST ACCOMPLISHMENT HE SAYS WAS BUILDING UP THE STATE AIRCRAFT MAKER PT INDUSTRI PESAWAT TERBANG NUSANTARA OR IPTN FROM 480 EMPLOYEES IN 1976 THE COMPANY'S PAYROLL HAS GROWN TO MORE THAN 16000 THAT INCLUDES 1600 ENGINEERS TO THE DISMAY OF SOME IN PRIVATE INDUSTRY WHO SAY IPTN SOAKS UP TOO MUCH TALENT MR HABIBIE SAYS A GOVERNMENT INVESTMENT OF MORE THAN 800 MILLION IS NOW PAYING OFF IPTN HAS SOLD OR CONTRACTED TO SELL FOR A TOTAL OF ABOUT 1 BILLION MORE THAN 300 PLANES AND HELICOPTERS MADE UNDER LICENSE FROM FOREIGN COMPANIES IT ALSO MAKES PARTS FOR BOEING CO MITSUBISHI HEAVY INDUSTRIES AND GENERAL DYNAMICS CORP MR HABIBIE PROUDLY POINTS OUT THAT THE COMPANY IS DESIGNING ITS OWN 50SEAT MEDIUMHAUL TURBOPROP PASSENGER PLANE THAT WILL BE THE FIRST OF ITS SIZE TO RELY ON FLY BY WIRE COMPUTERENHANCED PILOTING USED UNTIL NOW ONLY BY MILITARY AIRCRAFT AND LARGE PASSENGER JETS TALK OF SUCH GIZMOS ALARMS MR HABIBIE'S CRITICS WHERE'S OUR COMPARATIVE ADVANTAGE IN BUILDING AIRPLANES FOR THE 21ST CENTURY ASKS ONE INDONESIAN BUSINESSMAN WE SHOULD BE FOCUSING ON WHAT WE HAVE A LOWCOST LABOR FORCE AND RAW MATERIALS SUCH IDEAS ARE OF THE PAST MR HABIBIE INSISTS THAT THEORY IS TOTALLY WRONG HE SAYS JABBING A FINGER IN THE AIR HOW CAN YOU BUY SHIPS BY SELLING FISH HOW CAN YOU BUY TECHNOLOGY BY MAKING JEANS YOU CANNOT MAKE THAT STEPBYSTEP APPROACH YOU HAVE TO LEAP AHEAD MR PRAWIRO WHO LOST HIS POST AS ECONOMICS MINISTER LAST WEEK DEMURS IF YOU GIVE PRIORITY TO ONE PART OF THE ECONOMY AND THERE IS NO ROOM FOR THE OTHERS YOU WILL CREATE PROBLEMS HE PREDICTS HE SAYS THE COUNTRY'S LABOR FORCE GROWS BY 25 MILLION PEOPLE EACH YEAR AND SMALL AND MEDIUMSIZE INDUSTRIES ARE THE QUICKEST WAY TO ABSORB THEM IN THE ECONOMY AND TO PRODUCE EXPORTS INDONESIA'S FOREIGN DEBT TOTALS 78 BILLION AND THE COUNTRY NEEDS ALL THE HARDCURRENCY EARNINGS IT CAN GET THAT DELICATE REALITY MAKES BUSINESSPEOPLE WARY OF MR HABIBIE I DON'T SEE HOW HE CAN BE LOOKING AT LONGTERM PAYOFFS WHEN THERE ARE BIG SHORTTERM NEEDS IN THIS COUNTRY A FOREIGN BANKER SAYS A DEVOUT MUSLIM MR HABIBIE LEADS AN ASSOCIATION OF ISLAMIC INTELLECTUALS A POSITION HE SAYS HE TOOK AT THE URGING OF PRESIDENT SUHARTO AND ONLY TO FOSTER GREATER HUMAN RESOURCE DEVELOPMENT INDONESIA'S 160 MILLIONPLUS NOMINAL MUSLIMS ABOUT 90 OF THE POPULATION COULD BE A POTENT POLITICAL FORCE MR HABIBIE SAYS HE HAS ONLY ONE POLITICAL AMBITION TO GUIDE INDONESIA'S DEVELOPMENT FOR ANOTHER DECADE BEFORE RETIRING I AM A VISIONARY BUT I AM NOT A DREAMER HE SAYS A DREAMER WHEN HE AWAKENS FINDS NOTHING THERE A VISIONARY IS ALWAYS AWAKE 9303250024 930325 ABREAST OF THE MARKET INDUSTRIALS SLUMP 1648 TO 344538 AS DRUG TECHNOLOGY STOCKS FALL BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS SLUMPED AS INVESTORS BATTERED DRUG AND TECHNOLOGY COMPANIES AFTER GLOOMY EARNINGS OUTLOOKS FROM TWO KEY PLAYERS THE DOW JONES INDUSTRIAL AVERAGE FELL 1648 POINTS TO 344538 REFLECTING BIG LOSSES IN INTERNATIONAL BUSINESS MACHINES AND MERCK THE STANDARD & POOR'S 500STOCK INDEX SLIPPED 069 POINT TO 44807 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 035 TO 24691 VOLUME ON THE BIG BOARD TOTALED 271980000 SHARES UP FROM TUESDAY'S 231900000 SHARES DECLINING ISSUES OUTNUMBERED ADVANCERS 1001 TO 883 DRUGS STOCKS STUMBLED FROM THE OPENING BELL LARGELY IN RESPONSE TO MERCK'S ANNOUNCEMENT LATE TUESDAY THAT IT EXPECTS 1993 EARNINGS TO COME IN AT THE LOW END OF ANALYSTS' EXPECTATIONS MERCK LOST 2 1/4 TO 34 3/4 A 52WEEK LOW IN HEAVY TRADING SCHERINGPLOUGH TUMBLED 3 TO 56 1/2 PFIZER DROPPED 2 TO 57 5/8 BRISTOLMYERS SQUIBB SLIPPED 1/8 TO 58 AND ABBOTT LABORATORIES SLUMPED 3/4 TO 24 A FORECAST OF A SUBSTANTIALLY LARGERTHANEXPECTED FIRSTQUARTER LOSS BY AMDAHL A MAKER OF LARGE COMPUTERS DROVE BROADER MARKET AVERAGES SHARPLY LOWER IN THE AFTERNOON STOCKS OF OTHER BIG COMPUTER MAKERS WERE PARTICULARLY HARD HIT ON FEARS THAT THEY TOO MAY BE SUFFERING FROM THE WEAK ECONOMIC CLIMATE AND INTENSE PRICE COMPETITION THAT HURT AMDAHL IBM TUMBLED 3 1/8 TO 51 1/8 SOME ANALYSTS SAID A REPORT IN THE WALL STREET JOURNAL THAT IBM IS PREPARING TO NAME LOUIS V GERSTNER CHAIRMAN OF RJR NABISCO AS ITS NEW CHIEF EXECUTIVE ALSO HURT THE STOCK MANY INVESTORS HAD BEEN HOPING THE COMPUTER GIANT WOULD BE ABLE TO ATTRACT A HIGHPROFILE COMPUTER INDUSTRY EXECUTIVE SUCH AS APPLE COMPUTER'S JOHN SCULLEY DIGITAL EQUIPMENT SKIDDED 2 5/8 TO 42 1/4 AND HEWLETTPACKARD DROPPED 1 7/8 TO 72 3/4 AMDAHL WHICH IS TRADED ON THE AMERICAN STOCK EXCHANGE PLUNGED 1 1/2 TO 6 1/2 STOCKS WERE ALL OVER THE MAP SAID LON GORMAN COHEAD OF EQUITY TRADING AT FIRST BOSTON MR GORMAN ATTRIBUTED YESTERDAY'S DECLINES TO THE MARKET'S FAILURE TO BREAK THROUGH ITS RECORD HIGHS BUT DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS SAID THERE IS ANOTHER FACTOR AT WORK THE MARKET IS BEGINNING TO PERCEIVE A LOSS IN PRICING FLEXIBILITY AMONG THE GREAT CONSUMER STAPLES OF THE 1980S SAID MR SHULMAN THE LATEST SIGN OF THIS CAME TUESDAY WHEN TAMBRANDS INDICATED TO ANALYSTS THAT IT WOULDN'T MEET ITS REPEATED OBJECTIVE OF 15 ANNUAL EARNINGS GROWTH AFTER DROPPING 4 1/8 TUESDAY TAMBRANDS SANK 2 7/8 TO 54 3/4 YESTERDAY GOLDMAN SACHS REMOVED THE STOCK FROM ITS RECOMMENDED LIST PREM AS LACHMAN A DRUG ANALYST AT GOLDMAN SACHS SAID THE DRUG INDUSTRY IS CHANGING DRAMATICALLY IN ITS PROFITABILITY HE ADDED THAT THIS INDUSTRY GOING FORWARD IS STILL GOING TO BE A GROWTH INDUSTRY BUT ONLY WITH A HANDFUL OF SURVIVORS MR LACHMAN HAS DIVIDED THE DRUG INDUSTRY INTO THE HAVES WHICH CONSIST OF MERCK AND PFIZER THE TEMPORARY HAVES WHICH INCLUDE BRISTOLMYERS AMERICAN HOME PRODUCTS SCHERINGPLOUGH AND WARNERLAMBERT AND THE HAVE NOTS THE LATTER ARE SUCH STOCKS AS SYNTEX UPJOHN MARION MERRELL DOW AND ELI LILLY MR LACHMAN SAID HE BELIEVES THE HAVE NOTS ARE IN SERIOUS TROUBLE BECAUSE THEY ARE UNLIKELY TO PRODUCE THE DOUBLEDIGIT VOLUME GROWTH THAT HE EXPECTS MERCK AND PFIZER WILL GENERATE IN THE NEXT FEW YEARS CARNIVAL CRUISE LINES CLASS A SHARES SLID 4 1/4 TO 33 1/8 EVEN THOUGH THE COMPANY'S FIRSTQUARTER PROFIT GREW TO 36 CENTS A SHARE FROM 33 CENTS A YEAR AGO THE GAIN WAS BELOW ANALYSTS' EXPECTATIONS RJR NABISCO SLIPPED 1/8 TO 8 IN HEAVY TRADING ON THE REPORT MR GERSTNER IS EXPECTED TO BE NAMED THE NEW CHIEF EXECUTIVE OF IBM NATIONAL STEEL ONE OF THE MOST ACTIVELY TRADED STOCKS ON THE BIG BOARD ADDED 7/8 TO 14 7/8 THE COMPANY SOLD 10 MILLION COMMON SHARES AT 14 EACH IN AN INITIAL PUBLIC OFFERING PRICED THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES OFFSHORE PIPELINES LOST 1 3/8 TO 13 7/8 THE COMPANY PLANS TO SELL FOUR MILLION COMMON SHARES TO THE PUBLIC EL PASO NATURAL GAS SLIPPED 7/8 TO 36 1/8 AND ENRON CORP FELL 5/8 TO 61 LEHMAN BROTHERS LOWERED ITS RATINGS ON BOTH STOCKS TO NEUTRAL FROM OUTPERFORMER ACE LTD SOLD 186 MILLION ORDINARY SHARES TO THE PUBLIC IN AN INITIAL OFFERING THAT WAS PRICED AFTER THE MARKET CLOSED YESTERDAY AT 2750 A SHARE ACE IS A BERMUDABASED LIABILITY INSURANCE COMPANY STRONG INVESTOR DEMAND PROMPTED UNDERWRITERS LED BY JP MORGAN SECURITIES TO BOOST THE SIZE OF THE OFFERING FROM AN ORIGINALLY PLANNED 142 MILLION SHARES ANOTHER INSURANCE COMPANY LIFE PARTNERS GROUP SOLD 152 MILLION COMMON SHARES PRICED AT 17 APIECE IN AN INITIAL PUBLIC OFFERING SOLD THROUGH INVESTMENT BANKERS AT DONALDSON LUFKIN & JENRETTE SECURITIES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 128 TO 41828 THERE WERE 289 DECLINERS AND 251 ADVANCERS 9303250023 930325 BUSINESS BRIEF ILLINOIS POWER CO STATE COMMISSION APPROVES PAYOUT OF STOCK DIVIDENDS ILLINOIS POWER CO SAID IT RECEIVED APPROVAL FROM THE ILLINOIS COMMERCE COMMISSION TO PAY COMMON AND PREFERRED STOCK DIVIDENDS FOR 1993 AND THE FIRST QUARTER OF 1994 IF WRITEOFFS THAT MAY BE REQUIRED LEAVE THE UTILITY WITH NEGATIVE RETAINED EARNINGS THE ICC ORDER GIVES THE DECATUR ILL COMPANY AUTHORITY TO PAY THE PREVIOUSLY DECLARED DIVIDENDS IN THE EVENT THAT ANY WRITEOFFS RELATED TO A AUGUST 1992 RATE ORDER CAUSE THE COMPANY'S RETAINED EARNINGS TO BECOME NEGATIVE AS LONG AS CERTAIN OTHER FINANCIAL TESTS ARE MET ILLINOIS POWER SAID THE ICC ALSO APPROVED DIVIDENDS FOR THE SECOND QUARTER OF NEXT YEAR THE COMPANY SAID ILLINOIS POWER HAS APPEALED THE AUGUST 1992 RATE ORDER BUT A DECISION ISN'T EXPECTED BY THE ILLINOIS THIRD DISTRICT APELATE COURT BEFORE THIS YEAR'S THIRD QUARTER THE COMPANY SAID AS A RESULT IT SAID IT WON'T TAKE A WRITEOFF RELATED TO THE ORDER PENDING THE OUTCOME OF THE APPEAL IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY ILLINOIS POWER GAINED 25 CENTS TO 23625 9303250022 930325 BUSINESS BRIEF CENTOCOR INC FOURTHPERIOD LOSS WIDENED ON CHARGE RELATED TO DRUG CENTOCOR INC REPORTED THAT FOURTHQUARTER LOSSES WIDENED MORE THAN TWOFOLD FROM THE YEARAGO PERIOD LARGELY BECAUSE OF A WRITEDOWN RELATED TO ITS KEY DRUG THE MALVERN PA BIOTECHNOLOGY PHARMACEUTICAL COMPANY HAD A FOURTHQUARTER LOSS OF 897 MILLION OR 218 A SHARE COMPARED WITH THE YEARAGO LOSS OF 442 MILLION OR 119 A SHARE CENTOCOR'S YEAREND LOSS WAS 1941 MILLION OR 490 A SHARE COMPARED WITH 1956 MILLION OR 572 A SHARE FOR 1991 RESULTS FOR THE QUARTER AND THE YEAR INCLUDED 559 MILLION AND 649 MILLION OF INVENTORY WRITEDOWNS RESPECTIVELY ON HA1A OR CENTOXIN ITS DRUG DESIGNED TO TREAT AN OFTENFATAL BLOOD DISEASE CALLED SEPTIC SHOCK LAST YEAR'S RESULTS ALSO INCLUDED A 70 MILLION CHARGE FOR ACQUIRED RESEARCH FROM ITS TOCOR INC AFFILIATE CENTOCOR EARLIER THIS MONTH ENDED CLINICAL TRIALS OF CENTOXIN AFTER EARLY RESULTS SHOWED UNEXPECTEDLY HIGH NUMBERS OF PATIENT DEATHS CENTOCOR SHARES FELL 25 CENTS YESTERDAY TO CLOSE AT 650 IN NATIONAL OVERTHECOUNTER TRADING 9303250021 930325 WHO'S NEWS ROCKY MOUNTAIN HELICOPTERS INC ROCKY MOUNTAIN HELICOPTERS INC PROVO UTAH THIS TRANSPORTATION COMPANY NAMED J RUSSELL SPRAY ACTING CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR SPRAY 46 YEARS OLD HAD BEEN SERVING AS THE COMPANY'S CHIEF OPERATING OFFICER AND PRESIDENT HE SUCCEEDS JAMES B BURR WHO RETIRED LAST WEEK 9303250020 930325 MARKETING & MEDIA MURDOCH'S INTEREST IN NEW YORK POST SEEMS TO POSE DILEMMA FOR NEWS CORP BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RUPERT MURDOCH'S NEWS CORP CONFIRMED HIS INTEREST IN BUYING BACK THE AILING NEW YORK POST BUT ANALYSTS SAID THAT IF HE WINDS UP BIDDING FOR THE PAPER HE FACES A NOWIN SITUATION IN THE OVERCROWDED NEW YORK NEWSPAPER MARKET WHILE MR MURDOCH APPEARS TO HAVE THE MONEY TO KEEP THE PAPER GOING INVESTING IN A TROUBLED NEWSPAPER WOULD SEEM AT ODDS WITH NEWS CORP'S CURRENT STRATEGIC MOVES AWAY FROM NEWSPAPERS AND INTO ELECTRONIC NEWS AND INFORMATION DELIVERY INDUSTRY ANALYSTS SAID THEY ALSO SAID THAT THE POST MAY NOT SURVIVE LONG ENOUGH FOR MR MURDOCH TO GET THE NECESSARY APPROVAL TO BUY THE PAPER WHICH HE OWNED FROM 1976 TO 1988 PATRICK PURCELL CHIEF EXECUTIVE OF NEWS CORP'S NEWS AMERICA PUBLISHING UNIT SAID YESTERDAY WE HAVE BEEN ASKED BY VARIOUS PUBLIC OFFICIALS IF WE WOULD CONSIDER TAKING A LOOK AT IT AND WE ARE HE ADDED NEWSPAPERS ARE SOMETHING HE MR MURDOCH LOVES I DON'T THINK HE HAS EVER LOST INTEREST IN THEM BUT AT ISSUE IS WHETHER MR MURDOCH CAN OVERCOME FEDERAL REGULATIONS THAT WOULD PREVENT HIM FROM BIDDING FOR THE POST UNDER FEDERAL COMMUNICATIONS COMMISSION REGULATIONS PROHIBITING CROSSOWNERSHIP MR MURDOCH IS BARRED FROM OWNING BOTH A NEWSPAPER AND TELEVISION STATION IN THE SAME MARKET AFTER MR MURDOCH BOUGHT THE POST HE ACQUIRED LOCAL TELEVISION STATION WNYWTV IN 1986 AND HE WAS FORCED TO SELL THE PAPER TWO YEARS LATER WITH SOME POLITICAL MANEUVERING MR MURDOCH COULD BE GRANTED A WAIVER FROM THE FCC THAT WOULD ALLOW HIM TO OWN THE POST AND HIS FOX BROADCASTING CO NETWORK AFFILIATE THE CROSSOWNERSHIP ISSUE IS A CONCERN MR PURCELL CONCEDED IF THERE WERE AN FCC WAIVER WE WOULD CONSIDER BUYING THE POST A MURDOCH BID WOULD COMPETE WITH BUSINESSMAN ABRAHAM HIRSCHFELD WHO HAS AN OPTION TO BUY THE UNPROFITABLE PAPER THE POST WHICH HAS FILED FOR CHAPTER 11 BANKRUPTCYPROTECTION IS ESTIMATED TO HAVE LOSSES OF 10 MILLION A YEAR UNDER ITS CURRENT OWNER REAL ESTATE DEVELOPER PETER KALIKOW IS LOSING CIRCULATION AND FACES INCREASED COMPETITION FROM A REJUVENATED NEW YORK DAILY NEWS EVEN NEWS CORP'S MR PURCELL CALLED THE POST A TOUGH FINANCIAL SITUATION ANALYSTS WERE PUZZLED BY MR MURDOCH'S NEW INTEREST IN THE PAPER I JUST DON'T GET IT I DON'T KNOW WHAT SORT OF SYNERGY IT REPRESENTS SAID JESSICA REIF AN ANALYST AT OPPENHEIMER & CO 9303250019 930325 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 BLACK & DECKER CORP 500 MILLION OF NOTES DUE APRIL 1 2003 PRICED AT PAR TO YIELD 75 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 159 POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS NOVA CORP 200 MILLION OF ALBERTA DEBENTURES DUE APRIL 1 2023 PRICED AS 7 7/8 AT 99362 TO YIELD 7931 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 115 POINTS ABOVE THE TREASURY 30YEAR BOND RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO UNION CARBIDE CORP 300 MILLION TWOPART ISSUE OF SECURITIES PRICED THROUGH DEALERS LED BY MORGAN STANLEY & CO THE OFFERING INCLUDES 125 MILLION OF NOTES DUE APRIL 1 2003 PRICED AS 6 3/4 AT 99355 TO YIELD 684 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 093 POINT ABOVE THE TREASURY 10YEAR NOTE THE COMPANY ALSO OFFERED 175 MILLION OF DEBENTURES DUE APRIL 1 2023 PRICED AS 7 7/8 AT 99396 TO YIELD 7928 THE NONCALLABLE SECURITIES WERE PRICED AT A SPREAD OF 115 POINTS ABOVE THE TREASURY 30YEAR BOND BOTH PARTS ARE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P HONOLULU 620 MILLION OF REFUNDING AND NEWMONEY BONDS PRICED BY A PRUDENTIAL SECURITIES INC GROUP THE NONCALLABLE BONDS WERE GIVEN YIELDS THAT RANGE FROM 290 IN 1994 TO 570 IN 2013 BOTH MOODY'S AND S&P HAVE RATED THE ISSUE DOUBLEA NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP 2908 MILLION OF SERIES 1993 VARIABLE INTEREST RATE BONDS THROUGH AN UNDERWRITING GROUP LED BY BEAR STEARNS & CO INC THE BONDS HAVE A FINAL MATURITY OF APRIL 1 2022 THEY WERE PRICED AS 205 AT PAR AND ARE TO HAVE AN INTEREST RATE OF 205 FROM MARCH 30 1993 TO MAY 4 1993 FROM MAY 5 ONWARD THE BONDS WILL FLOAT WEEKLY MOODY'S IS EXPECTED TO RATE THE ISSUE DOUBLEA1/VMIG1 AND S&P IS EXPECTED TO ASSIGN A TRIPLEA/A1PLUS RATING THE BONDS CARRY A LETTER OF CREDIT FROM THE UNION BANK OF SWITZERLAND CREDIT SUISSE AND SWISS BANK CORP LGAC IS A PUBLIC BENEFIT CORPORATION OF NEW YORK STATE PHILADELPHIA SCHOOL DISTRICT 2116 MILLION OF GENERAL OBLIGATION REFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP INCLUDED IN THE TWOPART OFFERING ARE 114 MILLION SERIES A OF 1993 BONDS YIELDING FROM 375 IN 1995 TO 545 IN 2005 THE 976 MILLION SERIES B OF 1993 BONDS HAVE YIELDS THAT RANGE FROM 300 IN 1994 TO 550 IN 2006 SERIES A BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND SERIES B BONDS ARE INSURED BY AMBAC INDEMNITY CORP ALL OF THE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P ACE LTD 186 MILLION COMMON SHARES PRICED AT 2750 EACH THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC BAREFOOT INC 18 MILLION COMMON SHARES PRICED AT 2225 EACH THROUGH UNDERWRITERS LED BY WILLIAM BLAIR & CO CHICO FAS INC INITIAL OFFERING OF 14 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY ROBERT W BAIRD & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 900 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199358 IS BACKED BY FANNIE MAE STRIPS TRUST 218 WHICH IS IN TURN BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 810 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FLEET FINANCE INC 2563 MILLION OF HOME EQUITY LOAN ASSETBACKED CERTIFICATES PRICED IN A TWOPART SENIOR SUBORDINATE STRUCTURE THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP THE 1992 MILLION IN SENIOR CLASS A CERTIFICATES WERE PRICED AS 545 AT 99 30/32 TO YIELD 5535 OR 145 POINTS ABOVE THE TREASURY CURVE RATED TRIPLEA BY MOODY'S AND S&P THE CERTIFICATES HAVE A 238YEAR AVERAGE LIFE THE 57 MILLION IN SUBORDINATE CLASS B CERTIFICATES WERE PRICED AS 73 AT 99 25/32 TO YIELD 7447 OR 1875 POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY STANDARD & POOR'S THE CERTIFICATES HAVE A 689YEAR AVERAGE LIFE FLEET FINANCIAL IS A UNIT OF FLEET FINANCIAL GROUP INC EUROPEAN INVESTMENT BANK SUPRANATIONAL 300 MILLION CANADIAN DOLLARS OF 7 3/4 EUROBONDS DUE APRIL 22 2003 AT ISSUE PRICE 101135 VIA JP MORGAN SECURITIES REOFFERED AT 9946 TO YIELD 783 ANNUALLY A SPREAD OF 030 POINT OVER COMPARABLE CANADIAN GOVERNMENT NOTE FEES 2 NV BANK NEDERLANDSE GEMEENTEN DUTCH AGENCY 150 MILLION OF 7 3/8 EUROBONDS DUE APRIL 21 2000 AT ISSUE PRICE 100142 VIA BARCLAYS DE ZOETE WEDD SECURITIES INC REOFFERED AT 98567 TO YIELD 765 ANNUALLY A SPREAD OF 030 POINT ABOVE 9 UK GILT DUE 2000 FEES 1 7/8 INTERNATIONAL FINANCE CORP SUPRANATIONAL 200 BILLION LIRE OF 1065 EUROBONDS DUE APRIL 26 1999 PRICED AT 10135 TO YIELD 10743 AFTER FEES OF 1 3/4 VIA BANCA DI ROMA LEGAL & GENERAL PLC UK 120 MILLION OF CONVERTIBLE SUBORDINATED 6 3/4 EUROBONDS DUE APRIL 30 2008 AT ISSUE AND REOFFER PRICE PAR VIA CREDIT SUISSE FIRST BOSTON CALLABLE FROM MAY 21 1998 AT PAR AND CONVERTIBLE INTO ONE ORDINARY SHARE AT 558 PENCE FEES 2 1/2 INTEREST PAYABLE SEMIANNUALLY LEO 1 PLC UK 1045 MILLION OF TWO ADDITIONAL TRANCHES ON SENIOR MORTGAGEBACKED FLOATINGRATE NOTES DUE JULY 1 2035 ORIGINALLY ISSUED MAY 1992 VIA JP MORGAN SECURITIES LTD A1 TRANCHE IS 549 MILLION OF WHICH POOL FACTOR AT APRIL 1 1993 WILL BE 092 FOR AGGREGATE PRINCIPAL AMOUNT OF 50508 MILLION COUPON IS THREEMONTH LONDON INTERBANK OFFERED RATE PLUS 0375 STEPPING UP ON JULY 1 1995 TO THREEMONTH LIBOR PLUS 075 CALLABLE JULY 1 1995 AT PAR AVERAGE LIFE 134 YEARS ISSUE AND REOFFER PRICE 10003 OF AGGREGATE PRINCIPAL AMOUNT OUTSTANDING FEES 1/8 A2 TRANCHE IS 496 MILLION WITH COUPON OF THREEMONTH LIBOR PLUS 0625 STEPPING UP ON JAN 1 1998 TO THREEMONTH LIBOR PLUS 125 CALLABLE JAN 1 1998 AT PAR AVERAGE LIFE 415 YEARS ISSUE AND REOFFER PRICE 10025 FEES 1/4 NIPPON MEAT PACKERS INC JAPAN 300 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE APRIL 8 1997 WITH EQUITYPURCHASE WARRANTS AND 1 COUPON AT PAR VIA CREDIT SUISSE EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM APRIL 19 1993 TO MARCH 28 1997 TO BUY COMPANY SHARES TERMS FIXED MARCH 29 FEES 1 5/8 GENFINANCE LUXEMBOURG SA 150 MILLION OF PERPETUAL VARIABLERATE EURONOTES PRICED AT PAR VIA MERRILL LYNCH INTERNATIONAL BONDS FUNGIBLE 40 DAYS AFTER MARCH 31 PAYMENT DATE WITH 100 MILLION OF NOTES LAUNCHED SEPTEMBER 1991 INITIAL MARGIN IS SIXMONTH LIBOR FOR US DOLLARS PLUS 1 AN ALTERNATE MARGIN OF 125 ABOVE LIBOR UNTIL SEPTEMBER 1996 THEN 165 PLUS LIBOR UNTIL SEPTEMBER 2001 THEREAFTER 240 ABOVE LIBOR UNTIL NOTES ARE CALLED GUARANTOR GENERALE BELGIQUE FEES UNDISCLOSED BANCO DO BRASIL SA BRAZIL 100 MILLION OF 10 1/2 EUROBONDS DUE APRIL 14 1998 AT ISSUE AND REOFFER PRICE OF 99625 TO YIELD 106 VIA CREDIT SUISSE FIRST BOSTON LTD YIELD OFFERS SPREAD OF 543 POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1 1/4 INTEREST PAYABLE SEMIANNUALLY SUZUKI MOTOR CORP JAPAN 20 BILLION YEN OF 4 3/4 EUROBONDS DUE JULY 15 1999 AT ISSUE PRICE 10155 VIA NIKKO SECURITIES CO REOFFERED AT PAR FEES 1 7/8 SUZUKI MOTOR CORP 10 BILLION YEN OF 435 EUROBONDS DUE JULY 15 1997 AT ISSUE PRICE 10150 VIA DAIWA EUROPE LTD REOFFERED AT PAR FEES 1 5/8 HELLER FINANCIAL INC US 15 BILLION YEN OF EUROBONDS DUE MARCH 24 1997 AT ISSUE PRICE OF 100704 VIA GOLDMAN SACHS INTERNATIONAL AND FUJI INTERNATIONAL COUPON IS THREEMONTH LIBOR FOR YEN PLUS 040 FEES 1 5/8 INTEREST PAYABLE QUARTERLY 9303250018 930325 CLINTON APPEARS TO RECONSIDER TAX FOR HEALTH CARE BY MICHAEL K FRISBY AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON APPEARED TO STEP BACK FROM MEASURES THAT WOULD TAX COMPANIES OR THEIR EMPLOYEES TO PAY FOR HIS HEALTHCARE OVERHAUL PLAN IN AN INTERVIEW ON CBS'S 48 HOURS MR CLINTON ACKNOWLEDGED THAT HIS ADMINISTRATION IS CONSIDERING A NUMBER OF OPTIONS FOR FINANCING THE HUGE LEGISLATION BUT HE ADDED THAT THE LAST THING HE WANTS TO DO IS ASK THE EMPLOYERS AND THE EMPLOYEES OF AMERICA WHO ARE PAYING TOO MUCH FOR THEIR HEALTH CARE RIGHT NOW TO PAY MORE TO SOLVE THIS SHORTTERM PROBLEM THE ADMINISTRATION HAS BEEN CONSIDERING SUCH MEASURES AS TAXING WORKERS FOR HEALTH BENEFITS THAT EXCEED A SPECIFIED LEVEL LIMITING EMPLOYERS' ABILITY TO DEDUCT THE COST OF PROVIDING EMPLOYEE HEALTH BENEFITS AND TAXING EMPLOYERS A CERTAIN PERCENTAGE OF THEIR OVERALL EMPLOYEE HEALTH BILL IN A NEWS CONFERENCE TUESDAY MR CLINTON INDICATED THAT HE WAS LOOKING AT HEALTHCARE PROVIDERS TO PROVIDE REVENUE TO HELP FINANCE COVERAGE FOR THE 37 MILLION UNINSURED AMERICANS SEPARATELY THE WHITE HOUSE HAS DECIDED TO DISCLOSE THE NAMES OF THE HUNDREDS OF PEOPLE IN THE GROUPS ADVISING THE ADMINISTRATION'S HEALTHCARE TASK FORCE THE ADMINISTRATION HAS BEEN CRITICIZED FOR KEEPING SECRET THE IDENTITY OF THE ADVISORY GROUP MEMBERS THE VAST MAJORITY ARE FEDERAL CIVIL SERVANTS AND SEVERAL DOZEN ARE TEMPORARY GOVERNMENT EMPLOYEES LISTS OF PEOPLE WHO ARE SAID TO BE ON THE WORKING GROUPS HAVE APPEARED IN SEVERAL PLACES INCLUDING BNA PUBLICATIONS THE CONGRESSIONAL RECORD AND THE EDITORIAL PAGE OF THE WALL STREET JOURNAL BUT ADMINISTRATION OFFICIALS SAID THOSE LISTS AREN'T ENTIRELY ACCURATE IN CONJUNCTION WITH THE PUBLIC HEARING OF THE TASK FORCE MONDAY WE HAVE DECIDED TO RELEASE A LIST OF THE PEOPLE ON THE WORKING GROUPS SAID ROBERT BOORSTIN A SPOKESMAN FOR THE TASK FORCE FRANKLY WE JUST GOT TIRED OF SEEING SO MANY INACCURATE LISTS PUBLISHED IN SO MANY REPUTABLE PLACES THE REASON THE ADMINISTRATION INITIALLY WITHHELD THE IDENTITIES MR BOORSTIN SAID IN AN INTERVIEW HAD NOTHING TO DO WITH ANY GRAND SOVIETSTYLE CONSPIRACIES IT HAD EVERYTHING TO DO WITH TRYING TO BE KIND AND FAIR TO PEOPLE WHO HAVE GIVEN UP THEIR LIVES TO HELP US WITH HEALTHCARE REFORM WE DIDN'T FEEL WE SHOULD SUBJECT THEM TO THE ONSLAUGHT OF CALLS FROM THE ALLIGATOR SHOE CROWD OF WASHINGTON LOBBYISTS IN A LETTER SENT YESTERDAY TO A GENERAL ACCOUNTING OFFICE OFFICIAL BERNARD NUSSBAUM WHITE HOUSE COUNSEL SAID THE INFORMATION WILL BE FORWARDED TO THE GAO AS SOON AS IT HAS BEEN PREPARED 9303250017 930325 BUSINESS BRIEF HARNISCHFEGER INDUSTRIES INC DUTCH AUCTION IS PLANNED FOR UP TO 25 MILLION SHARES HARNISCHFEGER INDUSTRIES INC SAID IT BEGAN A DUTCH AUCTION TENDER OFFER FOR AS MANY AS 25 MILLION SHARES OR 9 OF ITS 28 MILLION COMMON SHARES OUTSTANDING UNDER THE DUTCH AUCTION EACH HARNISCHFEGER SHAREHOLDER WILL BE INVITED TO TENDER STOCK AT PRICES SPECIFIED BY THE HOLDER RANGING FROM 17 TO 20 A SHARE THE MILWAUKEE COMPANY WILL PURCHASE AS MANY AS 25 MILLION SHARES AT THE LOWEST PRICE WITHIN THAT RANGE SUFFICIENT TO ACQUIRE UP TO 25 MILLION SHARES THE PAPERMAKING MACHINERY AND MATERIALHANDLING EQUIPMENT CONCERN SAID IF MORE SHARES THAN NEEDED ARE TENDERED AT OR BELOW THE PRICE CHOSEN BY THE COMPANY TENDERING HOLDERS WITH FEWER THAN 100 SHARES WILL HAVE THEIR SHARES PURCHASED WITHOUT PRORATION OTHER SHARES WILL BE PURCHASED ON A PRORATA BASIS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY HARNISCHFEGER ROSE 875 CENTS TO 18875 HARNISCHFEGER SAID THE SHARES IT BUYS WILL BE USED TO FUND EMPLOYEE BENEFIT STOCK PLANS THE OFFER EXPIRES APRIL 21 UNLESS EXTENDED 9303250016 930325 BUSINESS BRIEF ALLIED HEALTHCARE PRODUCTS INC COMPANY AGREES TO PURCHASE 23 MILLION COMMON SHARES ALLIED HEALTHCARE PRODUCTS INC SAID IT AGREED TO BUY MORE THAN 23 MILLION SHARES OF ITS COMMON STOCK FROM CERTAIN PARTNERS OF HARBOUR GROUP INVESTMENTS LP FOR 9 A SHARE OR 207 MILLION THE MAKER OF MEDICAL GAS EQUIPMENT AND RESPIRATORY THERAPY PRODUCTS SAID THAT PRIOR TO THE PURCHASE ST LOUISBASED HARBOUR GROUP WILL DISTRIBUTE 38 MILLION ALLIED SHARES TO ITS LIMITED PARTNERS CERTAIN OF THE HARBOUR GROUP PARTNERS INCLUDING AN ENTITY AFFILIATED WITH SAM FOX GENERAL PARTNER OF HARBOUR GROUP CHOSE NOT TO SELL ANY SHARES TO ALLIED ALLIED ALSO SAID IT IS CANCELING PLANS FOR A SECONDARY OFFERING OF 3121536 COMMON SHARES AND A 500000 OPEN MARKET BUYBACK PROGRAM THE ST LOUIS COMPANY SAID IT WILL FINANCE THE PURCHASE THROUGH A COMBINATION OF 8 MILLION IN AVAILABLE CASH AND 127 MILLION IN BANK BORROWINGS AFTER THE DISTRIBUTION HARBOUR GROUP WILL HOLD 1141649 SHARES OR 207 OF ALLIED'S 5521508 SHARES OUTSTANDING 9303250015 930325 WHO'S NEWS F&C INTERNATIONAL INC F&C INTERNATIONAL INC CINCINNATI FLETCHER N ANDERSON WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS FLAVOR AND FRAGRANCE CONCERN MR ANDERSON 62 YEARS OLD WAS CHIEF OPERATING OFFICER HE SUCCEEDS JON P FRIES 46 WHO REMAINS CHAIRMAN THE COMPANY ALSO NAMED DAVID E ZIEGLER VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER MR ZIEGLER 48 CONTINUES AS CHIEF FINANCIAL OFFICER THE TITLE OF CHIEF OPERATING OFFICER WAS ELIMINATED 9303250014 930325 BUSINESS BRIEF FOODMAKER SEES LOSS FOR FISCAL 2ND PERIOD RELATED TO ILLNESSES FOODMAKER INC OWNER OF THE JACK IN THE BOX FASTFOOD CHAIN SAID IT EXPECTS A FISCAL SECONDQUARTER LOSS OF BETWEEN 20 MILLION AND 30 MILLION RELATED TO AN OUTBREAK OF SEVERE ILLNESS CAUSED BY TAINTED HAMBURGERS IN THE PACIFIC NORTHWEST FOODMAKER BLAMED THE OUTLOOK ON A SIGNIFICANT DECLINE IN SALES ABOUT 8 MILLION IN FINANCIAL ASSISTANCE GIVEN TO ITS FRANCHISEES AND 10 MILLION IN ONETIME CHARGES RELATED TO THE SPREAD OF A BACTERIAL INFECTION THAT CLAIMED THE LIVES OF AT LEAST TWO CHILDREN THE PAST TWO MONTHS HAVE CLEARLY BEEN THE MOST TRAUMATIC IN THE COMPANY'S 43YEAR HISTORY SAID JACK GOODALL PRESIDENT AND CHIEF EXECUTIVE OF THE SAN DIEGO RESTAURANT COMPANY WE ARE CONFIDENT THAT OUR BUSINESS WILL FULLY RECOVER MORE THAN 400 PEOPLE MOSTLY IN WASHINGTON STATE BECAME ILL IN JANUARY AFTER EATING JACK IN THE BOX BURGERS CONTAMINATED WITH E COLI BACTERIA SOME HEALTH OFFICIALS BELIEVE THE MEAT WAS TAINTED WHEN THE ANIMALS WERE SLAUGHTERED BUT THE OFFICIALS HAVE SAID THAT MOST OF THE BACTERIA COULD HAVE BEEN DESTROYED IF JACK IN THE BOX HAD COOKED THE BURGERS AT A HIGHER TEMPERATURE THE ANTICIPATED LOSS FOR THE QUARTER ENDING APRIL 11 EQUALS BETWEEN 50 CENTS A SHARE AND 75 CENTS A SHARE FOODMAKER SAID IT EXPECTS TO REPORT ITS RESULTS IN EARLY MAY IN THE YEARAGO QUARTER THE COMPANY POSTED A LOSS OF 574 MILLION OR 193 A SHARE AFTER A 605 MILLION EXTRAORDINARY CHARGE FOR EARLY DEBT RETIREMENT FOODMAKER SHARES WERE QUOTED YESTERDAY AT 850 DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHARES OF THE COMPANY WHICH WENT PUBLIC A YEAR AGO HAVE DROPPED FROM ABOUT 13875 SINCE WORD OF THE BACTERIAL OUTBREAK STARTED TO SPREAD IN MIDJANUARY MR GOODALL SAID RESTAURANT SALES AT JACK IN THE BOX HAVE BEGUN TO REBOUND STRONGLY IN RECENT WEEKS AFTER THE COMPANY RESUMED REGULAR PRODUCT ADVERTISING AND BEGAN OFFERING DISCOUNTS ON SOME MENU ITEMS 9303250013 930325 WHO'S NEWS BARCLAYS PLC SETS PLAN TO SEPARATE THE ROLES OF CHAIRMAN AND CEO LONDON BARCLAYS PLC BRITAIN'S LARGEST BANK SET IN MOTION A PLAN TO SPLIT THE RESPONSIBILITIES OF THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND SAID IT WILL LOOK FOR AN OUTSIDER TO FILL THE CEO POSITION THE MOVE FOLLOWS A DISCLOSURE EARLIER THIS YEAR OF AN ANNUAL LOSS FOR 1992 THE BANK'S FIRST EVER A SPECIAL PANEL OF FIVE BARCLAYS BOARD MEMBERS HEADED BY SIR DENYS HENDERSON CHAIRMAN OF IMPERIAL CHEMICAL INDUSTRIES HAS BEEN CREATED TO ASSIST IN THE EXECUTIVE SEARCH THE BANK SAID THE CURRENT CHAIRMAN AND CHIEF EXECUTIVE ANDREW BUXTON WILL RETAIN THE POST OF CHAIRMAN MR BUXTON A 53YEAROLD BARCLAYS EXECUTIVE AND A DESCENDANT OF ONE OF THE BANK'S FOUNDING FAMILIES SUCCEEDED SIR JOHN QUINTON AS CHIEF EXECUTIVE LAST YEAR AND AS CHAIRMAN AT THE START OF THIS YEAR TRADITIONALLY BARCLAYS HAS COMBINED THESE TWO ROLES AND MR BUXTON ORIGINALLY INTENDED TO MAINTAIN THAT PRACTICE BUT HIS ACCESSION TO THE TOP JOB FOR WHICH HE HAD BEEN PREPARING FOR YEARS COINCIDED WITH A SHARP DETERIORATION IN BARCLAYS' FINANCIAL PERFORMANCE LOSSES ON BAD LOANS MANY OF THEM TO PROPERTY COMPANIES THAT HAVE GONE BUST IN BRITAIN'S RECESSION HELPED CREATE A 1992 NET LOSS OF 242 MILLION 359 MILLION FORCING THE BANK TO SLASH ITS DIVIDEND 28 IN RESPONSE TO PRESSURE FROM INSTITUTIONAL SHAREHOLDERS AND MEDIA REPORTS SUGGESTING THAT BARCLAYS'S MANAGEMENT CONTROLS WERE LESS THAN ADEQUATE MR BUXTON ANNOUNCED IN JANUARY THAT HE WOULD SPLIT THE TOP POST AT THE BANK SOME TIME THIS YEAR THOUGH WITHOUT SAYING HOW OR WHEN HIS DECISION TO SPEED THE PROCESS AND TO LOOK OUTSIDE THE BANK FOLLOWS A SERIES OF MEETINGS WITH INSTITUTIONAL SHAREHOLDERS IN THE PAST FEW WEEKS 9303250012 930325 MARKETING & MEDIA NBC TO REPLACE LETTERMAN WITH COMEDY TALK SHOW NEW YORK NBC'S REPLACEMENT FOR LATE NIGHT WITH DAVID LETTERMAN WILL BE A COMEDY TALK SHOW THAT DEBUTS IN AUGUST ABOUT THE SAME TIME MR LETTERMAN STARTS ON CBS NBC SAID THE PROGRAM TO BE CREATED BY SATURDAY NIGHT LIVE EXECUTIVE PRODUCER LORNE MICHAELS WILL BE MORE COMEDY THAN TALK THE NETWORK SAID IT WILL FEATURE A FAMILY OF RECURRING CHARACTERS PLAYED BY A REPERTORY COMPANY WHICH IS EXPECTED TO INCLUDE SOME SATURDAY NIGHT LIVE ALUMNI SOME LATE NIGHT PERSONNEL ALSO ARE EXPECTED TO STAY A HOST AND OTHER CAST DETAILS FOR THE SHOW WHICH WILL RETAIN THE LATE NIGHT TITLE WILL BE SET BY MIDAPRIL THE GENERAL ELECTRIC CO UNIT SAID 9303250011 930325 LABOR AND COMMERCE FORM PANEL TO STUDY ISSUES IN WORKPLACE WASHINGTON A 10MEMBER PANEL SET UP BY THE LABOR AND COMMERCE DEPARTMENTS WILL EXAMINE WORKERMANAGEMENT RELATIONS AT US COMPANIES AND RECOMMEND CHANGES TO LABOR LAWS THE COMMISSION HEADED BY JOHN DUNLOP A FORMER LABOR SECRETARY AND HARVARD PROFESSOR WILL WORK TO CREATE A NEW MODEL FOR AMERICAN FIRMS TO FLOURISH AND COMPETE AND WIN IN THE GLOBAL MARKETPLACE COMMERCE SECRETARY RONALD BROWN SAID THE PANEL WILL COMPRISE RAY MARSHALL AND WILLIAM USERY BOTH FORMER LABOR SECRETARIES XEROX CORP CHAIRMAN PAUL ALLAIRE FORMER COMMERCE SECRETARY JUANITA KREPS FORMER UNITED AUTO WORKERS PRESIDENT DOUG FRASER AND FOUR ACADEMICS IN ADDITION JOHN ROLLWAGEN THE NOMINEE FOR DEPUTY COMMERCE SECRETARY AND THOMAS GLYNN WHO HOLDS THE SAME POST AT THE LABOR DEPARTMENT WILL BE ON THE TASK FORCE BUSINESS GROUPS ARE CONCERNED ABOUT WHAT THE GROUP WILL EVENTUALLY RECOMMEND BUT BOTH LABOR SECRETARY ROBERT REICH AND MR BROWN ARE SEEKING TO PORTRAY THE PANEL AS A POTENTIAL BOON TO CORPORATE AMERICA FOR TOO LONG LABORMANAGEMENT RELATIONS HAVE BEEN CARRIED OUT AS IF IT WERE A ZEROSUM GAME MR REICH SAID AT A NEWS BRIEFING BUT DONE RIGHT IT CAN BE A WINWIN THE GROUP WILL STUDY THREE QUESTIONS WHETHER NEW METHODS OR INSTITUTIONS SHOULD BE ENCOURAGED OR REQUIRED TO BOOST PRODUCTIVITY THROUGH LABORMANAGEMENT COOPERATION WHETHER CHANGES SHOULD BE MADE TO LABOR LAWS AND COLLECTIVE BARGAINING TO INCREASE COOPERATIVE BEHAVIOR AND REDUCE CONFLICT AND DELAY AND WHAT IF ANYTHING SHOULD BE DONE TO IMPROVE RESOLUTION OF WORKPLACE DISPUTES THE GROUP IS EXPECTED TO REPORT BACK TO THE GOVERNMENT IN A YEAR 9303250010 930325 TECHNOLOGY OREGON JURY FINDS DU PONT LIABLE IN CASE OF TEFLON JAW IMPLANT A WALL STREET JOURNAL NEWS ROUNDUP DU PONT CO WAS FOUND BY AN OREGON JURY TO BE LIABLE FOR 460000 IN DAMAGES CAUSED BY FAULTY JAW IMPLANTS MADE PARTLY FROM TEFLON MANUFACTURED BY THE CHEMICAL COMPANY THE CASE WAS ONLY THE THIRD TEFLON JAW IMPLANT CASE TO GO TO TRIAL DU PONT WON THE FIRST TWO OUT OF SEVERAL HUNDRED PENDING IN STATE COURTS AROUND THE COUNTRY SAID MICHAEL S MOREY THE LAWYER FOR IMPLANT RECIPIENT JUDY HOYT OF LA GRANDE ORE THE IMPLANTS KNOWN AS THE VITEK PROPLAST WERE MADE BY VITEK INC HOUSTON BETWEEN THE MID1980S AND 1991 VITEK RECALLED THE DEVICES AFTER IT WAS DISCOVERED THAT THEY DISINTEGRATED IN USE THE COMPANY WHICH HAS SINCE GONE BANKRUPT WASN'T A DEFENDANT IN THE CASE SAID MR MOREY THE ATTORNEY ALLEGED AT TRIAL THAT TINY PARTICLES OF TEFLON THAT SEPARATED FROM THE IMPLANT CAUSED A FOREIGN BODY REACTION IN HIS CLIENT AS HER IMMUNE SYSTEM TRIED TO REJECT THE TEFLON PARTICLES IT ALSO DISSOLVED A SMALL PORTION OF HER JAW BONE THE ATTORNEY SAID A SPOKESMAN AT DU PONT'S WILMINGTON DEL HEADQUARTERS SAID THE COMPANY WILL APPEAL THE VERDICT HE SAID HE WASN'T AWARE HOW MANY JAW IMPLANT CASES ARE PENDING AGAINST DU PONT HOWEVER HE DID SAY THAT 71 SIMILAR CASES HAVE BEEN DISMISSED IN DU PONT'S FAVOR THE SPOKESMAN NOTED THAT DU PONT HAD REQUIRED VITEK AND ALL MANUFACTURERS USING ITS MATERIALS IN IMPLANTABLE DEVICES TO SIGN AGREEMENTS THAT DU PONT HADN'T DESIGNED ITS MATERIALS FOR SUCH USE AND THAT THE MANUFACTURERS WERE RESPONSIBLE FOR TESTING AND ENSURING THE SAFETY OF THEIR IMPLANTS IN JANUARY DU PONT SAID IT WOULD NO LONGER SUPPLY MATERIALS TO BE USED IN PERMANANTLY IMPLANTABLE DEVICES 9303250009 930325 FOREIGN EXCHANGE DOLLAR ENDS MOSTLY HIGHER AS THE YEN TAKES DRUBBING IN PROFITTAKING BINGE BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK SENSING THE YEN'S RECENT RISE MAY HAVE STALLED INVESTORS CASHED IN AND UNLOADED YEN HOLDINGS THE JAPANESE CURRENCY FELL BROADLY WHILE THE DOLLAR ENDED MOSTLY HIGHER EXTENDING ITS GAINS AGAINST THE YEN INTO A LATE RALLY AGAINST EUROPEAN CURRENCIES IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 11760 YEN AND 16375 MARKS UP FROM 11595 YEN AND 16305 MARKS LATE TUESDAY STERLING WAS TRADING AT 14775 OFF FROM 14840 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 16353 MARKS AND AT 117 YEN IT'S JUST BEEN YEN SELLING STRAIGHT THROUGH SAID JOHN LYMAN SENIOR CUSTOMER DEALER AT BANK OF TOKYO NO SINGLE FACTOR TRIGGERED THE WAVES OF PROFITTAKING DEALERS SAID INSTEAD A COMBINATION OF BEARISH TECHNICAL INDICATIONS AND THE PERCEPTION THAT JAPAN'S TRADING PARTNERS MAY BE LOOKING FOR MEANS OF REDUCING JAPAN'S TRADE SURPLUS OTHER THAN STRENGTHENING THE YEN SET OFF YESTERDAY'S LIQUIDATION DEALERS SAID AS THE YEN SET NEW HIGHS AGAINST THE DOLLAR OVER THE PAST THREE TRADING DAYS INVESTORS LOADED UP ON THE JAPANESE CURRENCY EXPECTING FURTHER GAINS DEALERS SAID BUT AFTER THE DOLLAR REBOUNDED STRONGLY FROM TUESDAY'S LOW OF 11510 YEN PLAYERS BEGAN TO REASSESS THE CHANCES FOR FURTHER YEN GAINS SAID WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK SINCE THE MOVE SEEMED TO HAVE STOPPED IT LOOKED LIKE A GOOD TIME TO TAKE PROFITS HE SAID MR LYMAN SAID MARKET CONCERN ABOUT THE YEN'S ABILITY TO EXTEND ITS GAINS GREW TUESDAY AFTER A US TREASURY NOMINEE SAID THE GROUP OF SEVEN MAJOR INDUSTRIALIZED NATIONS SOUGHT EXCHANGE RATES THAT REFLECTED ECONOMIC FUNDAMENTALS ALTHOUGH PLAYERS QUESTIONED JUST WHAT THE COMMENTS MEANT MR LYMAN SAID THEY SEEMED TO AMPLIFY RECENT HINTS THAT MERELY STRENGTHENING THE YEN WON'T MAKE MUCH OF A DENT IN JAPAN'S HUGE TRADE SURPLUS DEALERS NOTED THAT TECHNICAL FACTORS SPED THE YEN'S PLUNGE AS THE JAPANESE CURRENCY DROPPED THROUGH KEY LEVELS AGAINST THE DOLLAR AND THE MARK TRIGGERING FURTHER SELLING DEMAND FOR MARKS AGAINST THE YEN KEPT THE DOLLAR FROM GAINING AGAINST THE MARK THROUGH MOST OF THE GLOBAL TRADING DAY DEALERS SAID ONLY WHEN MARK BUYERS LOST HEART AS THE GERMAN CURRENCY'S GAINS SLOWED AGAINST THE YEN DID THE DOLLAR PUSH AHEAD DEALERS ATTRIBUTED SOME OF THE MARK'S STRENGTH TO THE LATEST DISAPPOINTMENT OF HOPES GERMAN INTEREST RATES WOULD FALL AFTER LAST THURSDAY'S HALFPOINT CUT IN GERMANY'S DISCOUNT RATE MANY PLAYERS HAD EXPECTED A SIMILAR DROP IN MONEY MARKET RATES THIS WEEK INSTEAD THE BUNDESBANK'S WEEKLY SECURITIES REPURCHASE OPERATION YESTERDAY CAME AT THE SAME RATE AS LAST WEEK THE ENTHUSIASM FOR RAPID DECLINES IN GERMAN RATES HAS BEEN A LITTLE PREMATURE SAID MR ARNOLD THE DOLLAR ROSE SLIGHTLY AGAINST THE MARK ON NEWS THAT NEW ORDERS FOR DURABLE GOODS JUMPED 22 IN FEBRUARY BEYOND EXPECTATIONS OF A 05 INCREASE BUT DEALERS SAID THE RALLY WAS SHORTLIVED AS SKEPTICISM ABOUT THE DATA ERODED THE GAINS THEY FELT THAT IT WAS A ONETIME BLIP SAID JOHN MCCARTHY CHIEF DEALER AT ABNAMRO BANK THE GENERAL PERCEPTION IS THAT THE MARKET'S A LITTLE DISAPPOINTED WITH THE PACE OF ECONOMIC ACTIVITY HERE HE NOTED THAT FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ECHOED THOSE CONCERNS WHEN HE TOLD THE SENATE FINANCE COMMITTEE THAT ECONOMIC GROWTH ISN'T STRONG ENOUGH TO BRING DOWN THE UNEMPLOYMENT RATE SUFFICIENTLY QUICKLY THE DOLLAR ISN'T EXPECTED TO EXTEND ITS GAINS MUCH FURTHER DEALERS SAID THE YEN'S SLIDE THEY SAID APPEARS TO BE LITTLE MORE THAN A SHORTTERM TECHNICAL CORRECTION AFTER ITS RECENT SHARP GAINS 9303250008 930325 CORRECTIONS & AMPLIFICATIONS ANN WINBLAD IS A PARTNER IN HUMMER WINBLAD VENTURE PARTNERS IN EMERYVILLE CALIF A SOFTWARE VENTURECAPITAL FIRM IN A PAGEONE ARTICLE YESTERDAY ABOUT MICROSOFT CORP CHAIRMAN WILLIAM GATES MS WINBLAD WAS INCORRECTLY IDENTIFIED AS A FORMER VENTURE CAPITALIST BOWATER PLC STOCK CLOSED AT 490 PENCE 729 TUESDAY IN LONDON TRADING IN YESTERDAY'S WORLD MARKETS COLUMN THE CLOSING QUOTE WAS MISSTATED AS 490 WIDMER BREWING CO'S SHIPMENTS WERE 27500 BARRELS IN 1992 BASED ON ERRONEOUS DATA SUPPLIED BY THE INSTITUTE FOR BREWING STUDIES A TABLE ACCOMPANYING A MARCH 5 ARTICLE ON SMALL REGIONAL BREWERS STATED THAT WIDMER'S SHIPMENTS WERE 30000 BARRELS 9303250007 930325 POLITICS & POLICY US TRADE POLICY ZIGZAGS IN CONFUSION AS WHITE HOUSE DECIDES WHAT IT WANTS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR DESCRIBES HIMSELF AS THE ADMINISTRATION'S TRADE LAWYER THE TROUBLE IS HIS CLIENTS THE PRESIDENT AND HIS TOP ECONOMIC ADVISERS HAVEN'T MADE UP THEIR MINDS ON WHAT THEY WANT THUS CRITICS SAY US TRADE POLICY LURCHES BETWEEN CONFUSION AND CONTRADICTION LAST FRIDAY MR KANTOR PATTED JAPAN ON THE BACK FOR OPENING ITS SEMICONDUCTOR MARKET ON TUESDAY PRESIDENT CLINTON SMACKED JAPAN ON THE HEAD FOR KEEPING ITS MARKETS CLOSED LAST WEEK THE US TWISTED MEXICO'S ARM WHILE AT THE SAME TIME RELEASING ITS GRIP ON EUROPE THE WEEK BEFORE JUST THE OPPOSITE OCCURRED I DON'T SEE ANY TRADE STRATEGY OR CLEAR POLICY SAYS C FRED BERGSTEN DIRECTOR OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINK TANK WITHOUT A STRATEGY HE FEARS THE ADMINISTRATION WILL SUCCUMB TO INDUSTRY PLEAS FOR PROTECTION MR KANTOR'S LAWYERING SKILLS WILL BE ON DISPLAY MONDAY WHEN HE TAKES HIS FIRST TRIP ABROAD AS TRADE REPRESENTATIVE TO MEET IN BRUSSELS WITH THE EUROPEAN COMMUNITY'S TOP NEGOTIATOR SIR LEON BRITTAN IN AN INTERVIEW MR KANTOR SAYS TOUGH TACTICS WITH THE EUROPEANS HAVE ALREADY PAID OFF AFTER THE US THREATENED EUROPE WITH SANCTIONS EC PRESIDENT JACQUES DELORS AGREED TO SWEETEN OFFERS IN DISPUTES INVOLVING GOVERNMENT PROCUREMENT AND WORLD TRADE NEGOTIATIONS MR KANTOR SAYS SO LONG AS THE US AGREED TO POSTPONE THE SANCTIONS FOR A WEEK IT WAS CLEAR TO ME THAT WHEN YOU MAKE THAT KIND OF COMMITMENT MR KANTOR SAYS OF THE EC PRESIDENT AND YOU KNOW THE PERSON YOU'RE MAKING THE COMMITMENT TO IS GOING TO BE IN BRUSSELS IN A WEEK THERE'S SOME PRESSURE TO COME UP WITH SOMETHING AN EC SPOKESWOMAN SAYS THE EC RECENTLY SENT A DETAILED PROPOSAL SUGGESTING A STUDY OF PROCUREMENT PRACTICES BUT IS WORRIED THE US MAY STILL IMPOSE SANCTIONS AT THE SAME TIME THOUGH MR KANTOR SCOTCHES SUGGESTIONS THAT THE US AND EC COULD REACH EVEN A PRELIMINARY DEAL ON WORLD TRADE TALKS WHICH HAVE LANGUISHED FOR SIX YEARS UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WE'RE JUST BEGINNING THE PROCESS HE SAYS NOT ENDING IT BUT JAGDISH BHAGWATI A COLUMBIA UNIVERSITY PROFESSOR WHO ADVISES THE GATT WARNS THAT MR KANTOR'S WILLINGNESS TO TWIST ARMS AND BLAME EUROPE COULD KILL A DEAL MR KANTOR DOESN'T UNDERSTAND THE NUANCES OF TRADE NEGOTIATIONS MR BHAGWATI CONTENDS PEOPLE WILL STAND UP AND FIGHT HE SAYS THE CLINTON ADMINISTRATION'S PROBLEMS IN DEVISING A TRADE POLICY DATE BACK TO THE PRESIDENTIAL CAMPAIGN IN WHICH SUCH ISSUES PLAYED ONLY A MINOR ROLE WE DIDN'T HAVE THE TIME OR RESOURCES TO FIGURE OUT A NEW JAPAN OR INTERNATIONAL ECONOMIC POLICY SAID DEREK SHEARER A CLOSE CLINTON ADVISER AND COMMERCE DEPARTMENT ECONOMIC OFFICIAL AT A RECENT CONFERENCE HOSTED BY THE ECONOMIC STRATEGY INSTITUTE IN WASHINGTON AFTER THE ELECTION MR CLINTON SELECTED AS TRADE NEGOTIATOR THE 53YEAROLD MR KANTOR THE CLINTON CAMPAIGN CHAIRMAN AND VETERAN LOBBYIST WHO HAD NO TRADE EXPERIENCE HIS SKILLS WERE MAINLY POLITICAL A PREREQUISITE FOR A JOB THAT INVOLVES NEGOTIATING WITH CONGRESS AS WELL AS WITH OTHER NATIONS OTHER PRESIDENTS HAVE CHOSEN POLS FOR TRADE NEGOTIATOR BUT MR CLINTON ADDED A TWIST HE CREATED A NATIONAL ECONOMIC COUNCIL IN THE WHITE HOUSE TO COORDINATE AND PLOT ECONOMIC POLICY AND THE NEC HAS EMERGED AS A NATURAL COMPETITOR TO THE TRADE REPRESENTATIVE'S OFFICE OVER TRADE ISSUES OBVIOUSLY AS THE ISSUES IN TRADE GO ON AND EVERY DAY THERE'S SOMETHING NEW THE PROCESSES ARE EVOLVING SAYS ROBERT RUBIN THE NEC CHIEF SO FAR MR KANTOR AND MR RUBIN PRAISE THEIR WORKING RELATIONSHIP THEY FORMED A SATURDAY GROUP IT ACTUALLY MEETS TUESDAYS AT 7 AM IN WHICH MR KANTOR NEC STAFFERS AND TRADE EXPERTS FROM OTHER CABINET AGENCIES DISCUSS TRADE QUESTIONS THE NEC ALSO ARRANGES TELEPHONE CONFERENCE CALLS TWICE A WEEK I SEE MYSELF REPRESENTING THE DIFFERENT FACTIONS DIFFERENT AREAS OF THIS ADMINISTRATION AS THEIR LAWYER TO HELP DEVELOP POLICY COORDINATE IT AND NEGOTIATE IT MR KANTOR SAYS BUT OTHERS IN THE ADMINISTRATION AREN'T SO SANGUINE NOBODY'S IN CHARGE GROUSES A SENIOR ECONOMIC OFFICIAL HIS SOLUTION PRESIDENT CLINTON SHOULD GATHER HIS TOP TRADE OFFICIALS FOR A WEEKEND RETREAT WHERE THEY COULD HASH OUT ADMINISTRATIONWIDE TRADE POSITIONS FOR HIS PART MR KANTOR SAYS HE TURNS TO TREASURY SECRETARY LLOYD BENTSEN FOR ADVICE ON THE NORTH AMERICAN FREE TRADE AGREEMENT AND OTHER TRADE ISSUES RIGHT NOW TRADE POLICY IS UP FOR GRABS TAKE THE FREETRADE AGREEMENT WHICH WOULD LIBERALIZE TRADE BETWEEN THE US MEXICO AND CANADA DURING THE CAMPAIGN MR CLINTON ENDORSED THE PACT ONLY ON THE CONDITION THAT THE US NEGOTIATE FOR NORTH AMERICAN LABOR AND ENVIRONMENTAL COMMISSIONS THAT COULD LEVY FINES AND SANCTIONS BUT THE WHITE HOUSE FILLED SEVERAL INTERAGENCY GROUPS WITH LONGTIME GOVERNMENT WORKERS WHO HAD HELPED NEGOTIATE NAFTA AND ASKED THEM TO DEVISE DETAILED PLANS FOR THE COMMISSIONS NOT SURPRISINGLY THEY SUGGESTED PANELS WITH TAME ENFORCEMENT POWERS WHEN MR KANTOR PITCHED THAT IDEA ON CAPITOL HILL DURING HIGHLY PUBLICIZED HEARINGS LAWMAKERS TOLD HIM THE PACT COULD FAIL IN CONGRESS WHICH DOESN'T TRUST MEXICO TO ENFORCE ITS LAWS IN AN EMBARRASSING AND CONFUSING TURNAROUND THE NEXT WEEK MR KANTOR ASSURED OTHER CONGRESSIONAL PANELS THAT THE COMMISSIONS WOULD INDEED HAVE ENFORCEMENT TEETH MR KANTOR INSISTS THAT HE WAS CONSISTENT IN ALL HIS PRESENTATIONS RATHER HE SAYS LAWMAKERS IN LATER HEARINGS ASKED SPECIFICALLY ABOUT ENFORCEMENT THEN THERE'S AIRBUS INDUSTRIE AFTER NEARLY A DECADE OF FIGHTING WITH EUROPE US NEGOTIATORS LAST YEAR WORKED OUT A DEAL LIMITING GOVERNMENT SUBSIDIES FOR THE HUGE EUROPEAN AIRCRAFT CONSORTIUM US AIRCRAFT MAKERS GRUDGINGLY WENT ALONG BUT IN A TOWN MEETING LAST MONTH IN DETROIT A BOEING CO MACHINIST ASKED MR CLINTON ABOUT AIRBUS AND CLEARLY STRUCK A NERVE THE EUROPEANS ARE GOING TO HAVE TO QUIT SUBSIDIZING AIRBUS THE PRESIDENT VOWED I AM NOT GOING TO ROLL OVER AND PLAY DEAD AT THE COMMERCE DEPARTMENT AND THE TRADE REPRESENTATIVE'S OFFICE THE PRESIDENT'S ANNOUNCEMENT CAUGHT AIRCRAFT NEGOTIATORS OFFGUARD SO THE NEXT DAY THEY INITIATED REVIEWS OF THE ACCORD NOW AIRBUS ONCE AGAIN TOPS THE TRADE AGENDA SIMILARLY MR CLINTON'S BLAST AGAINST JAPAN THIS WEEK IN WHICH HE OPPOSED LOW TARIFFS ON FOREIGN MINIVANS SHOWED HIM TO BE WAY AHEAD OF HIS GOVERNMENT WHICH HAD BOTTLED UP THE ISSUE AT TREASURY TO MR KANTOR THESE ZIGZAGS MASK A GREATER CONSISTENCY WE EXPECT THE OPPORTUNITY TO TRADE WITH THE US TO CARRY WITH IT RESPONSIBILITY HE SAYS IN OTHER WORDS IF EUROPE AND JAPAN WANT ACCESS HERE THEY BETTER BE READY TO MAKE CONCESSIONS IN THEIR OWN MARKETS HE CALLS THAT COMPARABILITY FOR TOO LONG HE SAYS THE US HAS FORSAKEN ITS ECONOMIC INTERESTS TO GAIN POLITICAL COOPERATION FROM ITS ALLIES AND TRADING PARTNERS THE OIL SHOCK OF 1973 SHOULD HAVE AWAKENED AMERICANS TO THAT BUT IT DIDN'T HE SAYS FOR THE CLINTON ADMINISTRATION THOUGH NATIONAL SECURITY DEPENDS ON ECONOMIC SECURITY THAT'S GREAT ACCORDING TO HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO WHO SAYS THE US NEEDS MORE YANKEE TRADERS WHO KNOW HOW TO NEGOTIATE BUT TO COLUMBIA UNIVERSITY PROF BHAGWATI US ASSERTIVENESS SMACKS OF SELFRIGHTEOUSNESS BECAUSE MR KANTOR DOESN'T ACKNOWLEDGE UNFAIR US TRADE PRACTICES THE WHOLE TRADING SYSTEM WILL BREAK OUT INTO CONTINUOUS DISPUTE HE WARNS OH AND ABOUT CLINTON ADMINISTRATION TRADE INCONSISTENCIES MR KANTOR SAYS SIMPLY WHATEVER SIGNALS WE SENT WE SENT ON PURPOSE 9303250006 930325 SHORT INTEREST IN OTC STOCKS RISES TO HIGH MONTH'S TOTAL GAINED 44 DELL NOVELL BORLAND POSTED SIZABLE INCREASES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ROSE IN THE OVERTHECOUNTER STOCK MARKET TO AN ALLTIME HIGH CLIMBING 44 IN MIDMARCH TO 4983 MILLION SHARES FROM 4773 MILLION THE PREVIOUS RECORD IN MIDFEBRUARY ON THE NASDAQ NATIONAL MARKET SYSTEM WHERE MOST OF THE BIGGEST OTC ISSUES TRADE SHORT INTEREST INCREASED 49 TO 471 MILLION SHARES FROM 449 MILLION BUT THE MONTH SAW A DROP IN SHORT SELLING AMONG THE SMALLEST STOCKS WHICH MAKE UP ABOUT ONETHIRD OF THE NASDAQ MARKET SHORT INTEREST IN THESE STOCKS SLIPPED 35 TO 273 MILLION SHARES SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST MEANS THE TOTAL AMOUNT OF SHARES SOLD SHORT AT ANY POINT IN TIME IN THIS CASE THOSE REPORTED AS OF MARCH 8 AND SETTLED AS OF MARCH 15 THE PREVIOUS MONTH'S FIGURES ARE ADJUSTED BY NASDAQ OFFICIALS DURING EACH MONTH TO REFLECT THE LATEST INFORMATION MANY ANALYSTS SAY SHORT INTEREST OFTEN DOESN'T REFLECT ANY OPINION ON A STOCK AT ALL BUT SHOWS UP AS PART OF ANOTHER STRATEGY SUCH AS ARBITRAGE OR DIVIDEND CAPTURE THE SHORT INTEREST NUMBERS HAVE BECOME ALMOST MEANINGLESS BECAUSE OF DERIVATIVES AND OPTIONS SAID MICHAEL MURPHY WHO EDITS A SHORTSELLERS NEWSLETTER IN HALF MOON BAY CALIF MANY PEOPLE HAVE QUIT SHORT SELLING AND THE TOTAL AMOUNT OF MONEY MANAGED BY SHORT SELLERS HAS DECREASED BY A BILLION DOLLARS IN THE LAST COUPLE OF YEARS FOR SHORT SELLERS STILL IN THE BUSINESS THIS PAST MONTH HAS BEEN DIFFICULT HARRY STRUNK AN INVESTMENT CONSULTANT IN PALM BEACH FLA WHO TRACKS 17 SHORT SELLERS SAYS THAT FOR THIS MONTH SHORT SELLERS' PERFORMANCE WAS DOWN AN AVERAGE 3 TO 4 DESPITE THE INCREASED NUMBER OF SHORT SALES MR STRUNK SAYS AS FAR AS SHORT SELLERS ARE CONCERNED THIS IS TURNING OUT TO BE A ROUGH YEAR THE NATIONAL MARKET SYSTEM'S SHORT INTEREST RATIO AS OF MIDMARCH ROSE TO 221 FROM 199 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS A MEASURE OF TRADER SENTIMENT SOME ANALYSTS SUGGEST THE RATIO ALSO HAS WEAKENED AS AN INDICATOR BECAUSE OPTIONS AND OTHER DERIVATIVE STOCK PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS AMONG THE LARGEST VOLUME INCREASES IN SHORTINTEREST POSITIONS DELL COMPUTER'S SHORT INTEREST LEAPED 68 TO 69 MILLION SHARES NOVELL'S JUMPED 30 TO 43 MILLION SHARES AND BORLAND INTERNATIONAL'S INCREASED 23 TO 59 MILLION GRAND CASINOS INC NEARLY DOUBLED ITS SHORT POSITION TO 17 MILLION SHARES LAST WEEK THE PLYMOUTH MINN COMPANY POSTED A LOSS OF THREE CENTS A SHARE FOR ITS SECOND QUARTER ENDED JAN 31 COMPARED WITH EARNINGS OF THREE CENTS A SHARE A YEAR EARLIER GRAND DEVELOPS CASINOS FOR AMERICAN INDIAN TRIBES ON INDIAN LAND IT ROSE 1 1/4 TO 28 1/4 YESTERDAY SHORT SALES IN CHECKERS DRIVEIN RESTAURANTS ROSE 26 TO 29 MILLION SHARES CHECKERS' PRESIDENT JAMES E MATTEI HAS BEEN A HEAVY SELLER OF THE COMPANY'S SHARES FOR THE PAST FEW MONTHS INSIDER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW SINCE NOV 24 HE HAS SOLD 1150000 SHARES OF CHECKERS ABOUT ONETHIRD OF HIS STOCK IN THE COMPANY ACCORDING TO THE FILINGS THOSE SHARES HAVE FETCHED PRICES RANGING FROM 1950 TO 2425 HE RETAINS 2360000 SHARES THE FILINGS SHOW THE STOCK EASED 1/4 TO 17 YESTERDAY THE FOLLOWING TABLES SHOW THE OVERTHECOUNTER ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDMARCH OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDFEBRUARY SEE ACCOMPANYING TABLES WSJ MARCH 25 1993 9303250005 930325 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 119 DAYS 310 120 TO 149 DAYS 313 150 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 314 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 280 SIX MONTHS 296 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 312 ONE MONTH 315 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 303 90 DAYS 304 120 DAYS 307 150 DAYS 308 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 5/16 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 9 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY MARCH 22 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 294 13 WEEKS 305 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 724 60 DAYS 733 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 728 60 DAYS 738 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 279 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303250004 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 DAYSUNTIL 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 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 THE NUMBER TO A REPORTER BUT IT SAID 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 9303250003 930325 COMMODITIES GASOLINE FUTURES SPOT PRICES RALLY ON REPORT BY INDUSTRY GROUP OF US INVENTORY DRAWDOWN BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL A RALLY IN GASOLINE SUPPORTED BY A BULLISH INDUSTRY REPORT ON US SUPPLIES OF THE FUEL LED OIL MARKETS HIGHER PRICES OF GASOLINE JUMPED AS MUCH AS ONE CENT A GALLON IN SPOT AND FUTURES TRADING YESTERDAY AFTER A LATETUESDAY RELEASE BY THE AMERICAN PETROLEUM INSTITUTE SHOWED SURPRISINGLY LARGE DRAWDOWNS IN US INVENTORIES OF GASOLINE AND CRUDE OIL ACCORDING TO THE INSTITUTE'S REPORT GASOLINE INVENTORIES UNEXPECTEDLY FELL NEARLY 45 MILLION BARRELS LAST WEEK FROM THE LEVEL OF THE PRECEDING WEEK CRUDE OIL INVENTORIES ALSO WERE DOWN A SURPRISING 121 MILLION BARRELS THAT WAS THE BIGGEST DROP SINCE DECEMBER 1986 ALTHOUGH SOME TRADERS WERE SKEPTICAL IT MAY HAVE BEEN AN ABERRATION DUE TO STORM DELAYS IN THE UNLOADING OF CRUDE CARGOES FROM ABROAD STILL SAID THOMAS BLAKESLEE A BRODY WHITE & CO ENERGY ANALYST THE MARKET GOT A BOOST FROM THE API REPORT AND GASOLINE WAS THE STRONGEST COMPONENT MR BLAKESLEE SUGGESTED THAT THE INSTITUTE FIGURES MAY HAVE UNDERSCORED THE RUSH BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO SELL AS MUCH CRUDE AS POSSIBLE LAST MONTH TO BEAT A MARCH 1 DEADLINE ON PRODUCTION CUTBACKS MANY OF THE OPEC CRUDES ARE SOUR HEAVIER AND WITH MORE SULFUR AND THE REFINING OF SUCH GRADES GENERALLY YIELDS MORE DISTILLATES SUCH AS HEATING OIL AND LESS GASOLINE ALTHOUGH THE INSTITUTE DOESN'T BREAK OUT CRUDES BY SULFUR CONTENT OR DENSITY MR BLAKESLEE SAID THE INDUSTRY REPORT MADE CLEAR THAT US REFINERS INCREASED THEIR SOUR CRUDE USE WHILE TOTAL OPERATIONS OF THE REFINERIES WERE UP SHARPLY THEIR PRODUCT GAINS WERE MAINLY IN DISTILLATES MR BLAKESLEE SAID GASOLINE OUTPUT WAS DOWN 162000 BARRELS A DAY HE ADDED MEANWHILE GASOLINE IMPORTS DROPPED TO THEIR LOWEST LEVEL IN TWO YEARS MOSTLY AS A RESULT OF THESE DEVELOPMENTS THE FUTURES PRICE OF UNLEADED GASOLINE FOR APRIL DELIVERY WAS UP 082 CENT A GALLON ON THE NEW YORK MERCANTILE EXCHANGE TO SETTLE AT 5794 CENTS THE MAY GASOLINE CONTRACT WAS UP 094 CENT TO 5905 CENTS A GALLON CRUDE FUTURES ALSO WERE HIGHER BUT DIDN'T INCREASE PROPORTIONATELY AS MUCH AS GASOLINE CRUDE OIL FOR MAY DELIVERY ROSE WELL BEYOND THE PSYCHOLOGICALLYIMPORTANT LEVEL OF 20 A BARREL TO SETTLE AT 2024 UP 21 CENTS FOR THE DAY HEATING OIL PRICES WERE RELATIVELY FLAT BUT NATURAL GAS FUTURES SURGED IN RECORD TRADING VOLUMES GAS FOR APRIL DELIVERY JUMPED 107 CENTS A MILLION BRITISH THERMAL UNITS ABOUT 1000 CUBIC FEET TO SETTLE AT 2224 A LIFEOFCONTRACT HIGH BUT THE APRIL CONTRACT WAS EXPIRING A MAJOR REASON FOR THE RUNUP TRADERS ALSO CITED HIGHER SPOT PRICES BECAUSE OF THE PERCEPTION THAT SUPPLIES MAY HAVE TIGHTENED DUE TO RECENT WINTER STORMS THE MAY GAS FUTURES CONTRACT ROSE 48 CENTS TO 2050 A MILLION BTUS IN OTHER COMMODITY MARKETS YESTERDAY LIVESTOCK AND MEATS HOG AND CATTLE PRICES SANK AT THE CHICAGO MERCANTILE EXCHANGE AMID GROWING SPECULATION THAT THE MONTHSLONG RALLY IN LIVESTOCK PRICES IS RUNNING OUT OF STEAM THE HOG CONTRACT FOR APRIL DELIVERY DROPPED 137 CENTS A POUND TO SETTLE AT 4945 CENTS A POUND THE CATTLE CONTRACT FOR APRIL DELIVERY FELL 07 CENT A POUND TO SETTLE AT 8272 CENTS A POUND CASH HOG PRICES HAVE CLIMBED SINCE LATE JANUARY WHEN THE WEEKLY HOG SLAUGHTER BEGAN LAGGING THE RATE FOR THE SAME 1992 WEEKS BY ABOUT 5 THE DROP SURPRISED THE MEATPACKING INDUSTRY WHICH HAD BEEN ENCOURAGED BY THE AGRICULTURE DEPARTMENT'S DEC 1 HOG SURVEY TO EXPECT ROUGHLY A 3 RISE IN WEEKLY PORK PRODUCTION HOG PRICES HAVE SOARED OVER THE PAST FEW WEEKS ON SPECULATION THAT THE GOVERNMENT OVERESTIMATED THE HOG POPULATION AND WOULD REVISE ITS NUMBERS IN THE QUARTERLY SURVEY SLATED FOR RELEASE AFTER THE CLOSE OF TOMORROW BUT MANY TRADERS DECIDED TO TAKE PROFITS YESTERDAY IN CASE THE AGRICULTURE DEPARTMENT REPORT SIGNALS A HERD EXPANSION ANALYSTS AREN'T CLEAR WHY THE HOG SLAUGHTER HAS SLIPPED ALTHOUGH SOME HAVE GUESSED THAT THE WETTERTHANNORMAL WINTER IN THE MIDWEST MIGHT HAVE DELAYED WEIGHT GAINS JOHN NALIVKA EXECUTIVE VICE PRESIDENT OF STERLING MARKETING INC LENEXA KAN SAID HE EXPECTS THE GOVERNMENT'S MARCH 1 SURVEY TO DETECT 589 MILLION HOGS UP 5 FROM THE SAME 1992 DATE THE DROP IN HOGS PRICES YESTERDAY HELPED COOL CASH STEER PRICES WHICH HAVE JUMPED AS HIGH AS A RECORD 88 CENTS A POUND IN SOME INTERIOR MARKETS PRECIOUS METALS PRECIOUS METALS FUTURE PRICES ROSE ON TECHNICAL FACTORS AND ON CONTINUED MARKET UNCERTAINTY ABOUT RUSSIAN PRESIDENT BORIS YELTSIN'S POLITICAL WRANGLE WITH A RESTIVE PARLIAMENT ANALYSTS SAID GOLD PRICES WERE ONLY MODESTLY HIGHER WITH THE ACTIVELY TRADED APRIL FUTURES CONTRACT GAINING 40 CENTS TO SETTLE AT 33270 AN OUNCE ON THE COMMODITY EXCHANGE MAY SILVER PRICES JUMPED 31 CENTS ON THE COMEX TO CLOSE AT 3693 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM AND PALLADIUM PRICES WERE FIRMER RUSSIA IS A MAJOR PRODUCER AND EXPORTER OF THE TWO WHITE METALS WHICH ARE USED EXTENSIVELY BY THE AUTOMOTIVE AND ELECTRONIC INDUSTRIES THE ACTIVELYTRADED APRIL PLATINUM CONTRACT ROSE 160 TO 36090 AN OUNCE WHILE THE JUNE PALLADIUM CONTRACT CLIMBED 195 TO 10795 AN OUNCE SUGAR SUGAR FUTURES PRICES CONTINUED TO SLIDE WITH THE ACTIVELY TRADED MAY CONTRACT SKIDDING 010 CENT TO 1168 CENTS A POUND ON THE COFFEE SUGAR & COCOA EXCHANGE PROFITTAKING BY COMMODITY FUNDS SPARKED THE DECLINE TRADERS SAID THE DROP YESTERDAY FOLLOWS A 044CENTAPOUND DECLINE ON TUESDAY THE WEAKER SUGAR FUTURES THIS WEEK MARK A CORRECTION IN A MAJOR RALLY OF SUGAR PRICES DURING MARCH SOME ANALYSTS ATTRIBUTED THE WEAKER TONE TO INCREASED AVAILABILITY OF THAI SUGAR ON THE MARKET 9303250002 930325 WHO'S NEWS COASTAL CORP COASTAL CORP HOUSTON CARL CORRALLO WAS NAMED SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF THIS ENERGY COMPANY MR CORRALLO 49 YEARS OLD WAS DEPUTY GENERAL COUNSEL AND SENIOR VICE PRESIDENT OF A COASTAL SUBSIDIARY HE SUCCEEDS MICHAEL BEATTY WHO RESIGNED TO RETURN TO PRIVATE PRACTICE IN COLORADO 9303250001 930325 WHO'S NEWS ALBANK FINANCIAL CORP ALBANK FINANCIAL CORP ALBANY NY ANTHONY P TARTAGLIA 60 YEARS OLD WAS NAMED TO THE BOARD OF THIS BANK HOLDING COMPANY WHOSE SOLE SUBSIDIARY IS ALBANY SAVINGS BANK HE FILLS A POSITION ON THE 10MEMBER BOARD VACATED WHEN ROGER MABIE 75 RETIRED LAST YEAR MR TARTAGLIA IS THE DEAN OF THE ALBANY MEDICAL COLLEGE AND EXECUTIVE VICE PRESIDENT FOR ACADEMIC HEALTH SCIENCES OF THE ALBANY MEDICAL CENTER 9303250146 930224 DECIPHERING LYRICS IS PART OF THE FUN FOR THE MUSIC LOVER BUT WHO NEEDS UNDERSTANDING WHEN YOU HAVE NIRVANA CERTAINLY NOT THE ROCK FAN BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES HERE'S A QUIZ FOR TONIGHT'S GRAMMY AWARDS AUDIENCE IN SMELLS LIKE TEEN SPIRIT THE SMASH HIT BY NIRVANA THAT IS NOMINATED FOR BEST ROCK SONG WHAT IS THE SHOUTED LAST LINE GIVE UP SO MUST MILLIONS OF NIRVANA FANS WHO NONETHELESS PUSHED TEEN SPIRIT TO THE TOP OF THE CHARTS THIS YEAR'S NOMINEES BY MEMBERS OF THE NATIONAL ACADEMY OF RECORDING ARTS AND SCIENCES INCLUDE A BUMPER CROP OF HOT BUT HARDTOUNDERSTAND HITS BY ARTISTS INCLUDING U2 RED HOT CHILI PEPPERS AND PEARL JAM THAT MAY LEAVE AUDIENCES A BIT CONFUSED BUT CLAMORING FOR MORE THERE'S PLENTY OF PRECEDENT FOR MYSTIFICATION IN ROCK HISTORY ACCORDING TO DEEJAYS AND CRITICS IN CREEDENCE CLEARWATER REVIVAL'S BAD MOON RISING SOME FANS DIDN'T KNOW DESPITE THE TITLE THAT THERE WAS A BAD MOON ON THE RISE THEY THOUGHT THERE WAS A BATHROOM ON THE RIGHT IT'S PART OF THE LORE WHEN THE BEATLES SANG OF THE GIRL WITH KALEIDOSCOPE EYES IN THE CLASSIC LUCY IN THE SKY WITH DIAMONDS SOME MEDICALLY MINDED LISTENERS HEARD IT AS THE GIRL WITH COLITIS GOES BY GLENN GASS A PROFESSOR OF MUSIC AT INDIANA UNIVERSITY WHO TEACHES ROCK HISTORY SAYS ONE GREAT THING ABOUT ROCK IS THAT IT LENDS ITSELF TO MUSICAL MALAPROPISMS HE SAYS THE MUSIC TAKES ON ITS REAL MEANING AS PEOPLE LISTEN AND INTERPRET FOR THEMSELVES EVEN WHEN THEY GET IT WRONG THAT'S PART OF WHAT MAKES ROCK UNIQUE SAYS PROF GASS LIKE READING JAMES JOYCE SOMETIMES IT'S INTENTIONAL THAT PEOPLE NOT UNDERSTAND THE LYRICS SAYS MICHAEL LIPPMAN A PRODUCER AND MANAGER WHO HAS SEVERAL CLIENTS INCLUDING GUNS N' ROSES AND PEARL JAM WHO ARE UP FOR GRAMMYS INDECIPHERABLE LYRICS FORCE FANS TO USE THEIR IMAGINATIONS OR HELP SEPARATE THE HIP FROM THE UNHIP HE SAYS FANS SEEKING ENLIGHTENMENT FREQUENTLY TURN TO PROFESSIONALS FOR HELP ROCK STATIONS SUCH AS CHICAGO'S WLUPFM GET A STEADY STREAM OF CALLS FROM FANS OF THE GROUP REM DESPERATE TO KNOW THE WORDS TO THE CHORUS OF SIDEWINDER SLEEPS TONITE THE ANSWER WHO THE HELL KNOWS SAYS BOB STROUD A POPULAR DISK JOCKEY THERE JEFFERSON HOLT REM'S MANAGER NOTES THAT THE BAND GENERALLY DOESN'T PRINT LYRICS IN ITS LINER NOTES OF COURSE GENERATIONS HAVE MANGLED THE STARSPANGLED BANNER TOO EVEN CHRISTMAS CAROLS WITNESS ROUND JOHN VIRGIN IN SILENT NIGHT JERRY LEIBER WHO WROTE HUNDREDS OF HITS FROM POISON IVY TO JAILHOUSE ROCK AND YAKETY YAK WITH PARTNER MIKE STOLLER SAYS THAT HIS INTEREST IN LYRICS STARTED WITH A MISHEARD HYMN AS A LITTLE KID IN CATHOLIC SCHOOL I USED TO SING HAPPY THE CROSSEYED BEAR' HE DEADPANS HE LATER REALIZED THE LINE WAS GLADLY THE CROSS I'D BEAR AND WENT ON TO WRITE ABOUT OTHER ANIMALS TO WIT THE ELVIS PRESLEY CLASSIC HOUND DOG PEOPLE REGULARLY WRITE TO RADIO STATIONS REQUESTING FLUBBED FAVORITES GARY OWENS WHOSE VOICE HAS GRACED COUNTLESS RADIO AND TV SHOWS OVER THE YEARS FROM LAUGHIN TO REN AND STIMPY HAS SOME PARTICULAR FAVORITES WE GOT A LOT OF LETTERS FOR HERB ALPERT'S NO 1 HIT THE SKY'S IN LOVE WITH YOU' HE SAYS A SONG OTHERWISE KNOWN AS THIS GUY'S IN LOVE WITH YOU FOR ARTISTS LIKE THE ROLLING STONES BOB DYLAN AND THE BEATLES SLURRED LYRICS AND THE QUASITHEOLOGICAL DISPUTATIONS THEY BROUGHT ON MERELY ADDED TO THE ARTISTS' MYSTIQUE JIM LADD A DEEJAY AT KLSXFM IN LOS ANGELES AND HOST OF A SYNDICATED ROCK SHOW RECALLS PULLING JOHN LENNON'S LEG OVER THE CONTROVERSIAL I AM THE WALRUS BY PRAISING THE LINE EVERYBODY SMOKE POT EVERYBODY SMOKE POT EVERYBODY SMOKE POT MR LENNON PROTESTED NO IT'S EVERYBODY'S GOT ONE EVERYBODY'S GOT ONE EVERYBODY'S GOT ONE' WHEN MR LADD PERSISTED MR LENNON FINALLY SNAPPED HEY I WROTE THAT STEVE MORRIS A DEEJAY WITH KQQLFM IN MINNEAPOLIS SOMETIMES INVITES LISTENERS TO SHARE THEIR MISINTERPRETATIONS ON THE AIR THE HANDSDOWN WINNER HE SAYS WAS THE WOMAN WHO OFFERED UP THIS LIVESTOCK LYRIC TO THE JOHNNY RIVERS SONG POOR SIDE OF TOWN IT'S HARD TO FIND NICE THINGS ON A FOURSIDED COW SOME SONGS SPARK MULTIPLE MISUNDERSTANDINGS IN THE RASCALS' SONG GROOVIN' THE LINE YOU AND ME ENDLESSLY IS VARIOUSLY INTERPRETED AS YOU AND ME 'N' LSD OR YOU AND ME AND LESLIE ENGLAND DAN AND JOHN FORD COLEY'S I'D REALLY LOVE TO SEE YOU TONIGHT INCLUDES THE LYRIC I'M NOT TALKIN' ABOUT MOVIN' IN WHICH BECOMES I'M NOT TALKIN' ABOUT THE LINENS OR MORE COSMICALLY I'M NOT TALKIN' ABOUT MILLENNIUM MOTOWN HAS MADE ITS SHARE OF CONTRIBUTIONS TOO THERE'S THE MUCHREQUESTED ARETHA FRANKLIN HIT JANE'S A FOOL BETTER KNOWN AS CHAIN OF FOOLS AND DIANA ROSS AND THE SUPREMES' PLEA TO A RECALCITRANT LOVER STOP IN THE NEIGHBORHOOD BUT THE ULTIMATE IN MUMBO JUMBO IS PROBABLY THE 1963 VERSION OF LOUIE LOUIE BY THE KINGSMEN WHICH SPARKED AN FBI INVESTIGATION BECAUSE PEOPLE THOUGHT THE LYRICS MIGHT BE OBSCENE AFTER MUCH STUDY AUTHORITIES DECLARED THE SONG UNINTELLIGIBLE AT ANY SPEED BUT NOT BEFORE IT HAD BEEN BANNED FROM THE AIRWAVES IN INDIANA AND BECOME A HUGE HIT ELSEWHERE THE GOVERNMENT SHOULDN'T HAVE WORRIED IT'S A SEA CHANTEY ABOUT THIS JAMAICAN SAILOR SAYS DAVE MARSH AN INDEPENDENT ROCK CRITIC WHO JUST COMPLETED A BOOK ABOUT THE IMBROGLIO THERE'S REALLY NOTHING DIRTY IN IT MR MARSH CALLS SMELLS LIKE TEEN SPIRIT THE LOUIE LOUIE OF 1993 WEIRD AL YANKOVIC MAY HIT EVEN CLOSER TO HOME WITH HIS PARODY SMELLS LIKE NIRVANA WHICH INCLUDES THE LINES SING DISTINCTLY WE DON'T WANNA/BUY OUR ALBUM WE'RE NIRVANA AS FOR THE ABOVE QUIZ THE CORRECT ANSWER IS C A DENIAL BUT YOU COULDN'T PROVE IT BY US DEEP DOWN EVEN THOSE DEVOTED TO ROCK CONCEDE THAT WE AREN'T TALKING TS ELIOT HERE WHEN WRITING ABOUT ROCKANDROLL A CRITIC IS ALWAYS NAGGED BY THIS SENSE OF AM I MAKING TOO MUCH OF THIS' SAYS ANTHONY DECURTIS A SENIOR EDITOR AT ROLLING STONE MAGAZINE OR AS MICK JAGGER ONCE PUT IT I KNOW IT'S ONLY ROCKANDROLL/BUT I LIKE IT SOMETHING LIKE THAT SEE RELATED LETTER LETTERS TO THE EDITOR YOU DIDN'T HEAR WHAT YOU HEARD WSJ MARCH 24 1993 9302240148 9303240173 930324 INTERNATIONAL SOCIALISTS SEEK TO REVITALIZE WANING LEFTIST MOVEMENT IN WESTERN EUROPE BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE ROUT OF FRANCE'S SOCIALIST PARTY IN PARLIAMENTARY ELECTIONS THIS WEEK PROVIDES DRAMATIC EVIDENCE OF THE CRISIS THE LEFT FACES ACROSS WESTERN EUROPE FROM STOCKHOLM TO ROME LONDON TO BONN SOCIALIST AND SOCIAL DEMOCRATIC PARTIES ARE STRUGGLING TO COME TO TERMS WITH CHANGING TIMES THAT HAVE TAKEN A TOLL ON THEIR CREDIBILITY AND ELECTORAL SUPPORT THIS STRUGGLE BY THE LEFT TO REDEFINE AND REPOSITION ITSELF IS LIKELY TO MARK EUROPEAN POLITICS FOR THE NEXT DECADE IF THE LEFT SUCCEEDS IN RENEWING ITSELF PREDICTIONS ABOUT ITS DEMISE NOW HEARD IN FRANCE AND BRITAIN COULD PROVE PREMATURE BUT IF IT FAILS THE POLITICAL MAP OF EUROPE IS LIKELY TO BECOME INCREASINGLY FRAGMENTED AND UNPREDICTABLE THERE IS A SENSE THAT WE ARE AT THE END OF AN ERA BUT THE SHAPE OF THE FUTURE ISN'T CLEAR SAYS JAMES CORNFORD DIRECTOR OF THE INSTITUTE FOR PUBLIC POLICY RESEARCH A LEFTLEANING THINK TANK IN LONDON THE FATE OF FRANCE'S SOCIALISTS IS THE MOST STRIKING IT HAS LOST FOUR MILLION VOTES HALF OF ITS SUPPORT SINCE THE LAST PARLIAMENTARY ELECTIONS IN 1988 AS IN SPAIN WHERE THE SOCIALIST GOVERNMENT OF FELIPE GONZALEZ IS ALSO IN TROUBLE AHEAD OF ELECTIONS THIS YEAR THE DROP IN VOTES IN FRANCE MAY BE LINKED TO ECONOMIC RECESSION AND THE PARTY'S LONG SPELL IN OFFICE LAURENT FABIUS THE PARTY CHAIRMAN ACKNOWLEDGED AFTER SUNDAY'S VOTING THAT SUPPORT HAD BEEN ERODED BY TIME UNEMPLOYMENT AND DISAPPOINTMENT BUT OFFICIALS AND THINKERS IN SEVERAL EUROPEAN NATIONS ALSO POINT TO DEEPERROOTED FACTORS TO EXPLAIN THE LEFT'S PREDICAMENT THE OLD TENETS OF TRADITIONAL LEFTIST THOUGHT AND THE OFTEN ROMANTIC IDEALISM SURROUNDING THEM HAVE BEEN LARGELY DISCARDED MOST MAINSTREAM PARTIES NO LONGER TALK OF CLASS STRUGGLE OR THE SORT OF INTRUSIVE BIGSPENDING GOVERNMENT THAT CREATED THE WELFARE STATE IN EUROPE EVEN IN BRITAIN WHERE THE LABOR PARTY IS HIDEBOUND BY TRADITION THERE ARE MOVES AFOOT TO DELETE A CLAUSE ABOUT PUBLIC OWNERSHIP OF ASSETS FROM THE PARTY'S CHARTER WHILE THE RELICS OF THE PAST ARE DISAPPEARING FEW COHERENT NEW THEORIES HAVE EMERGED TO PROVIDE AN ALTERNATIVE IDEOLOGICAL UNDERPINNING FOR THE LEFT CHARISMATIC LEFTIST LEADERS WHO COMMAND POPULAR SUPPORT ARE ALSO THIN ON THE GROUND ONE OF THE FEW FRANCE'S MICHEL ROCARD URGED LAST MONTH THAT THE FRENCH SOCIALIST PARTY BE REPLACED BY A BROADER GRASSROOTS MOVEMENT HE SAYS THE PARTY MUST NO LONGER DEFINE ITSELF EXCLUSIVELY AS A PARTY OF WORKERS RALLYING AROUND THE SAME CLASS STRUGGLE THIS CONCEPT HAS BECOME A PARALYZING ANACHRONISM BUT MR ROCARD HASN'T GIVEN MUCH CLUE ABOUT HOW HE SEES A MODERNIZED LEFTIST MOVEMENT AND HE COULD LOSE HIS SEAT IN THE FINAL ROUND OF VOTING NEXT SUNDAY ONE OF THE LEFT'S BIGGEST PROBLEMS IS THAT ITS TRADITIONAL VOTER BASE IN THE WORKING CLASS HAS BEEN ERODED BY THE DECLINE OF HEAVY INDUSTRY AND THE RISE OF AN AFFLUENT MIDDLE CLASS IN EUROPE THAT HAS LITTLE TIME FOR SACRIFICE AND SOLIDARITY THEY WANT TAX CUTS NOT OLDFASHIONED LEFT WING RECIPES FOR TAX INCREASES OR REDISTRIBUTION OF WEALTH THE IRONY IS THAT THE SHIFT FROM WORKING CLASS TO MIDDLE CLASS OFTEN TOOK PLACE UNDER THE AUSPICES OF SOCIAL DEMOCRATS WHO ARE BEING PUNISHED ELECTORALLY AS A RESULT THE LEFT IS A VICTIM OF ITS OWN SUCCESS SAYS POUL NYRUP RASMUSSEN CHAIRMAN OF DENMARK'S SOCIAL DEMOCRATIC PARTY IN AN INTERVIEW BEFORE HE BECAME PRIME MINISTER EARLIER THIS YEAR SOME LEFTIST PARTIES IN EUROPE ALSO ADMIT THEY WERE SLOW TO RESPOND TO TRENDS SUCH AS ENVIRONMENTAL ACTIVISM FOR A WHILE IN GERMANY DURING THE EARLY 1980S FOR EXAMPLE THE GREENS MOVEMENT MADE DEEP INROADS INTO SUPPORT FOR THE SOCIAL DEMOCRATIC PARTY THEN THERE IS THE QUESTION OF CREDIBILITY WHERE THEY HAVE BEEN IN GOVERNMENT ESPECIALLY IN FRANCE SOCIALISTS HAVE FARED NO BETTER THAN CONSERVATIVES ELSEWHERE IN EUROPE AT STEMMING THE RISE IN UNEMPLOYMENT DESPITE MAKING IT THEIR TOP PRIORITY IN BRITAIN AND GERMANY WHERE LEFTIST PARTIES HAVE BEEN IN OPPOSITION FOR MORE THAN A DECADE THEY HAVE CONSPICUOUSLY FAILED TO CAPITALIZE ON WIDESPREAD PUBLIC DISGRUNTLEMENT WITH THE GOVERNMENT INDEED PUBLIC ANGER IN GERMANY ABOUT THE COSTS OF REUNIFICATION HAVE SPARKED AN INCREASE IN SUPPORT FOR FARRIGHT PARTIES RATHER THAN THE TRADITIONAL OPPOSITION WE AREN'T VERY CONVINCING ADMITS PETER GLOTZ A LEADING GERMAN SOCIAL DEMOCRAT THE PEOPLE ARE ANGRY BUT THERE'S AN ALIENATION OF PARTIES FROM THE PEOPLE LOOK AT IMMIGRATION WE ALL TALK ABOUT IT BUT WE DON'T SOLVE THE PROBLEM SCANDALS HAVEN'T HELPED ALLEGATIONS OF CORRUPTION AND ILLEGAL PARTY FINANCING ARE BATTERING SOCIALIST PARTIES IN SEVERAL NATIONS THE FALLOUT HAS BEEN PARTICULARLY STRONG IN ITALY WHERE THE SOCIALIST PARTY LEADER BETTINO CRAXI AND OTHERS RESIGNED BUT SCANDALS HAVE ALSO ERUPTED IN FRANCE SPAIN AND BELGIUM MOCKING THE LEFT'S CLAIM THAT IT OCCUPIED THE MORAL HIGH GROUND IN POLITICS AS THEY NOW LOOK TO FORGE NEW POLICIES EUROPE'S LEFTIST THINKERS FACE ONE BIG OBSTACLE THE CLOSER WESTERN EUROPE'S ECONOMIES GROW TO EACH OTHER THE HARDER IT IS TO BRANCH OUT WITH RADICALLY DIFFERENT POLICIES BUDGETARY DISCIPLINE AND LOW INFLATION ARE THE NEW ORTHODOXY FRANCE'S PRESIDENT FRANCOIS MITTERRAND DISCOVERED THAT TO HIS COST IN THE EARLY 1980S WHEN HE WAS FORCED TO MAKE A HUMILIATING UTURN AFTER THE FRENCH FRANC WAS DEVALUED THREE TIMES IN QUICK SUCCESSION THE RESULT OF EUROPEAN COMMUNITY DISCIPLINE IS THAT LEFT AND RIGHT NOW BROADLY SHARE THE SAME ECONOMIC RECIPES THEY ALSO MUST TACKLE THE BLOATED WELFARE STATE THAT WAS THE LEFT'S GREATEST ACHIEVEMENT BUT NOW HAS BECOME A MAJOR DRAG ON GOVERNMENT FINANCES THE WELFARE STATE ESTABLISHED AFTER 1945 BY SOCIAL DEMOCRATS CANNOT CONTINUE TO EXIST IN THE SAME WAY SAYS MR GLOTZ THE GERMAN SOCIAL DEMOCRAT INSTEAD WE MUST PUT MORE VALUE ON THE INITIATIVE OF INDIVIDUALS A FEW YEARS AGO SUCH WORDS WOULD HAVE BEEN HERESY NOW THEY ARE COMMONPLACE AS THE LEFT FIGHTS TO REGAIN ITS PLACE 9303240172 930324 WHO'S NEWS CELGENE TAPS ODIORNE AS PRESIDENT TO BE CHIEF EXECUTIVE LATER WARREN NJ CELGENE CORP NAMED THOMAS H ODIORNE PRESIDENT AND CHIEF OPERATING OFFICER AND SAID HE WILL SUCCEED JOHN UFHEIL AS CHIEF EXECUTIVE BEFORE THE END OF THE YEAR MR UFHEIL THE COMPANY'S 59YEAROLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SAID HE HAS BEEN PLANNING FOR A LONG TIME TO RETIRE FROM DAYTODAY RESPONSIBILITIES WHEN HE TURNS 60 IN SEPTEMBER HE SAID THE ADDITION OF MR ODIORNE INCREASES SIGNIFICANTLY THE MANAGEMENT STRENGTH OF THE COMPANY THE CHIEF OPERATING OFFICER POSITION IS NEWLY CREATED MR ODIORNE 52 HAS BEEN PRESIDENT OF JOHNSON & JOHNSON'S PHARMACEUTICAL DEVELOPMENT GROUP BEFORE THAT HE WAS PRESIDENT OF J&J'S MCNEIL PHARMACEUTICAL CO WITH OVERALL RESPONSIBILITY FOR MANAGING OPERATIONS OF THE US AND CANADIAN COMPANIES AS PRESIDENT AND CHIEF OPERATING OFFICER MR ODIORNE WILL TAKE CHARGE OF ALL BUSINESS OPERATIONS AND WILL BE RESPONSIBLE FOR HELPING TRANSFORM CELGENE FROM A TECHNOLOGYDRIVEN TO A MARKETDRIVEN ENTERPRISE THE COMPANY SAID CELGENE IS A CHEMICAL BIOTECHNOLOGY COMPANY THAT DEVELOPS BIOTREATMENT SYSTEMS TO DEGRADE HAZARDOUS WASTES AND ALSO DEVELOPS AND MAKES HIGHPURITY CHIRAL CHEMICALS FOR THE PHARMACEUTICAL AGROCHEMICAL AND FOOD INDUSTRIES ALTHOUGH BOTH BUSINESSES ARE IN THE EARLY STAGES OF COMMERCIALIZATION CELGENE RECENTLY FORMED A STRATEGIC ALLIANCE WITH BETZ LABORATORIES INC OF TREVOSE PA TO COMMERCIALIZE CELGENE'S TECHNOLOGY TO TREAT TOXIC INDUSTRIAL WASTE EFFLUENTS BETZ DEVLOPS WATER AND WASTE TREATMENT SYSTEMS AND PRODUCES CHEMICALS USED IN THOSE SYSTEMS THE COMPANY IS POISED FOR VERY RAPID GROWTH NOW THAT WE HAVE REACHED THE STAGE OF COMMERCIALIZATION MR UFHEIL SAID WE CAN SEE THE LIGHT AHEAD NOW THAT WE WILL BE GENERATING SIGNIFICANT REVENUE AND EARNINGS IN THE FORSEEABLE FUTURE HE ADDED THE STARTUP CHEMICAL BIOTECHNOLOGY COMPANY HASN'T POSTED A PROFIT SINCE IT WENT PUBLIC IN 1987 9303240171 930324 WHO'S NEWS DIED CHARLES A SPECHT 78 FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MACMILLANBLOEDEL LTD FRIDAY IN KATONAH NY 9303240170 930324 WHO'S NEWS CRSS INC CRSS INC HOUSTON BRUCE R STUART WAS NAMED A DIRECTOR OF THIS DESIGN AND CONSTRUCTION SERVICES CONCERN FILLING A VACANCY MR STUART IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DRESSERRAND CO OF CORNING NY 9303240169 930324 COLUMBIA GAS SAYS CHAPTER 11 SCHEDULE IS SEVERELY DISRUPTED' NEW YORK COLUMBIA GAS SYSTEM INC'S PROJECTED TIMETABLE FOR EMERGING FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS HAS BEEN SEVERELY DISRUPTED BY LEGAL AND OTHER ISSUES THE COMPANY SAID AS A RESULT THE WILMINGTON DEL HOLDING COMPANY SAYS IT NOW APPEARS UNLIKELY THAT WE WILL BE ABLE TO GAIN APPROVAL FOR PLANS OF REORGANIZATION BEFORE THE END OF THIS YEAR IN ITS JUSTRELEASED 1992 ANNUAL REPORT COLUMBIA GAS REVIEWED THE STATUS OF THE MID1991 BANKRUPTCY FILING WHICH WAS PROMPTED BY EXPOSURE TO HUGE COSTS UNDER CONTRACTS TO PURCHASE NATURAL GAS AT PRICES WELL ABOVE MARKET RATES THE FILING TRIGGERED AN ARRAY OF LAWSUITS AND OTHER CLAIMS AGAINST THE COMPANY BY GAS SUPPLIERS OTHER CREDITORS SHAREHOLDERS AND THE INTERNAL REVENUE SERVICE A FEDERAL BANKRUPTCY COURT RECENTLY EXTENDED UNTIL APRIL 2 THE EXCLUSIVE PERIOD FOR COLUMBIA GAS TO FILE A PROPOSED REORGANIZATION PLAN MAJOR ISSUES TO BE RESOLVED INCLUDE A DECISION ON THE TOTAL AMOUNT OF CLAIMS TO BE ALLOWED UNDER THE DISPUTED NATURAL GAS DELIVERY CONTRACTS AND A DETERMINATION OF WHETHER 17 BILLION OF DEBT SECURITIES OF THE COLUMBIA GAS TRANSMISSION UNIT HELD BY THE PARENT SHOULD BE TREATED AS LOANS OR AS CAPITAL CONTRIBUTIONS ALSO TO BE SETTLED IS AN IRS CLAIM OVER A 1985 PLAN TO REDUCE OBLIGATIONS TO NATURAL GAS PRODUCERS DESPITE THE TANGLED BANKRUPTCY PROCEEDING COLUMBIA GAS TOLD SHAREHOLDERS ITS OPERATIONS ARE SHOWING IMPROVEMENT IN 1992 IT SAID NET INCOME WAS 987 MILLION OR 195 A SHARE IF SPECIAL CHARGES AND BANKRUPTCYRELATED COSTS ARE ELIMINATED COMPARED WITH YEAREARLIER NET OF 808 MILLION OR 160 A SHARE ACTUAL NET WAS 512 MILLION OR 101 A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 6944 MILLION OR 1374 A SHARE REVENUE ROSE TO 292 BILLION FROM 258 BILLION COLUMBIA GAS CHAIRMAN JOHN H CROOM SAID THE RESULTS REFLECT IMPROVED RATE STRUCTURES AND SUBSTANTIAL INCREASES IN DELIVERIES BY THE TRANSMISSION AND DISTRIBUTION BUSINESSES IT ALSO HAD INCREASED REVENUES FROM PROPANE OPERATIONS AND INCOME FROM TWO NEW COGENERATION FACILITIES 9303240168 930324 DISTRICTS WITH MAJORITIES OF BLACKS HISPANICS DOUBLE WASHINGTON THE NUMBER OF CONGRESSIONAL DISTRICTS WITH BLACK OR HISPANIC MAJORITIES DOUBLED BETWEEN 1980 AND 1990 THE CENSUS BUREAU SAID THE INCREASE TO 52 DISTRICTS FROM 26 SIGNALS THE GROWING NUMBERS OF MINORITIES IN THE US AND THE EFFORT TO MAKE MINORITY REPRESENTATION MORE EQUAL THROUGH STATE REDISTRICTING BLACK MAJORITY DISTRICTS INCREASED TO 32 FROM 17 OVER THE 10YEAR PERIOD THE GROWTH WAS CONCENTRATED IN SOUTHERN STATES WHERE THE MAJORITY OF BLACK AMERICANS LIVE FLORIDA ADDED THREE GEORGIA NORTH CAROLINA AND TEXAS EACH ADDED TWO AND ALABAMA LOUISIANA MARYLAND NEW YORK PENNSYLVANIA SOUTH CAROLINA AND VIRGINIA ADDED ONE APIECE CALIFORNIA LOST ONE DISTRICT WHERE BLACKS ARE NO LONGER THE MAJORITY THE NUMBER OF HISPANIC MAJORITY DISTRICTS INCREASED TO 20 FROM NINE CALIFORNIA ADDED FIVE CONGRESSIONAL DISTRICTS TEXAS TWO AND ARIZONA FLORIDA ILLINOIS AND NEW YORK ONE EACH ONLY A FEW OF THE PEOPLE WHO REPRESENT THE DISTRICTS IN THE HOUSE AREN'T BLACK OR HISPANIC THE CENSUS REPORT ENTITLED POPULATION AND HOUSING PROFILE CONGRESSIONAL DISTRICTS OF THE 103RD CONGRESS ALSO FOUND THAT CALIFORNIA'S 29TH DISTRICT LOS ANGELES WAS THE ONLY ONE WITH 1990 MEDIAN HOME VALUES IN EXCESS OF 500000 IN 1990 THERE WERE 41 CONGRESSIONAL DISTRICTS WITH MEDIAN HOME VALUES OF 200000 OR MORE OF THESE 25 WERE IN CALIFORNIA AND 11 WERE IN THE NEW YORK NORTHERN NEW JERSEYLONG ISLAND AREA 9303240167 930324 POLITICS & POLICY CLINTON WHITE HOUSE WARY OF THE PAST KEEPS TOP AIDES OF JIMMY CARTER OUTSIDE THE FENCE BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THEY'RE THE LOST TRIBE OF US POLITICS THE MEN AND WOMEN WHO SERVED JIMMY CARTER OF THE 25 TOP PEOPLE IN MR CARTER'S WHITE HOUSE IN 1979 NONE HAS BEEN OFFERED A JOB IN THE CLINTON ADMINISTRATION THOUGH CARTERITES HAVE EMERGED IN KEY POSTS IN THE FOREIGN POLICY NATIONAL SECURITY AREA THERE'S HARDLY A FAMILIAR CARTER FIGURE ANYWHERE ELSE IN THE NEW DEMOCRATIC ADMINISTRATION I WOULD GUESS IT'S A CONSCIOUS EFFORT SAYS GREG SCHNEIDERS WHO WAS MR CARTER'S DEPUTY COMMUNICATIONS DIRECTOR THEY DON'T WANT THIS ADMINISTRATION TO LOOK LIKE CARTER II IT'S NOT APPEARANCE ONLY IT'S SUBSTANCE AS WELL MEMBERS OF THE CLINTON TEAM DON'T WANT TO PERFORM LIKE THE CARTER ADMINISTRATION EITHER THEY RECOIL AT THE MEMORY OF SURGING INFLATION A HOSTAGE CRISIS IN IRAN WHITE HOUSE STATEMENTS ABOUT A CRISIS OF SPIRIT AMONG AMERICANS GRIDLOCK WITH A CONGRESS CONTROLLED BY THE PRESIDENT'S OWN PARTY MASS CABINET FIRINGS THEY AVOID CARTERESQUE BEHAVIOR ANY WAY THEY CAN THEY MADE SURE THEY HAD CONTROL OF THE APPOINTMENT OF SUBCABINET OFFICIALS MR CARTER ALLOWED THE CABINET SECRETARIES TO PICK THEIR OWN PEOPLE AND THE RESULT WAS DUCAL GOVERNMENT MR CLINTON GOES OUT OF HIS WAY TO SCHMOOZE WITH MEMBERS OF CONGRESS FROM BOTH SIDES OF THE AISLE MR CARTER WASN'T ONE FOR SCHMOOZING AND HE PAID A STEEP PRICE MR CLINTON'S PERSONAL LOBBYING ON CAPITOL HILL FOR HIS CAREFULLY CONSTRUCTED PROGRAM SEEMS TO BE PAYING OFF THE JIMMY CARTER ANALOGY HAS NOW DIED DECLARES MASSACHUSETTS DEMOCRATIC REP BARNEY FRANK SOME CARTER VETERANS TAKE PART OF THE CREDIT FOR THE IMPROVEMENT HAVING MET WITH THE CLINTON PEOPLE AND WARNED THEM OF SOME OF THE PITFALLS IT WOULD BE A LOT EASIER TO WORK FOR THIS GUY SAYS FRANK MOORE WHO WAS MR CARTER'S CHIEF CONGRESSIONAL LOBBYIST AND WHO IS NOW A VICE PRESIDENT AND WASHINGTON REPRESENTATIVE OF GIANT WASTE MANAGEMENT INC IT IS A REPLAY OF SORTS OF WHAT THE CLINTON PEOPLE DID IN THE CAMPAIGN THEN IT WAS THEIR GOAL TO AVOID DOING ANYTHING THAT MICHAEL DUKAKIS HAD ATTEMPTED IN HIS LOSING PRESIDENTIAL CAMPAIGN IN 1988 HE WAS THE BAD EXAMPLE THEN NOW THE BAD EXAMPLE IS MR CARTER AND SO IT IS THAT EVEN MR CARTER'S VICE PRESIDENT WALTER MONDALE STILL A SAVVY STUDENT OF THE WAY THE GOVERNMENT WORKS HAS BEEN DISAPPOINTED THOUGH HE MIGHT HAVE BEEN OF CONSIDERABLE ASSISTANCE TO THE NEW ADMINISTRATION ALL HE WAS OFFERED WAS AN AMBASSADORSHIP TO MOSCOW HARDLY A TEMPTATION FOR A POLITICIAN WHO GREW UP IN WINTRY MINNESOTA AMBASSADORSHIPS IN FACT SEEM TO BE THE NEW TEAM'S IDEA OF A WAY TO REWARD THE OLD STUART EIZENSTAT MR CARTER'S DOMESTIC POLICY CHIEF AND THE ONE CARTERITE MOST HIGHLY TOUTED BY HIS OLD COLLEAGUES FOR A JOB WITH THIS ADMINISTRATION IS ALSO IN LINE TO SERVE HIS COUNTRY IN A FARAWAY CAPITAL TAKING NO ROLE IN DESIGNING DOMESTIC POLICY FOR THE CLINTONITES THAT'S TOO BAD SAYS BERT LANCE MR CARTER'S FIRST BUDGET DIRECTOR STU REALLY UNDERSTANDS DOMESTIC POLICY HE COULD HAVE HELPED THERE ARE INDEED A HANDFUL OF CARTER VETERANS SCATTERED THROUGH THE NEW ADMINISTRATION IN DOMESTICPOLICY JOBS BUT MOST OF THEM SERVED IN SECONDTIER OR THIRDTIER ROLES DURING MR CARTER'S SINGLE TERM IN OFFICE SECRETARY OF ENERGY HAZEL O'LEARY FOR EXAMPLE WAS A DIVISION HEAD IN THE CARTER ENERGY DEPARTMENT W BOWMAN CUTTER NOW THE WHITE HOUSE'S DEPUTY NATIONAL ECONOMIC ADVISER WORKED IN MR CARTER'S BUDGET OFFICE ROGER ALTMAN THE NEW DEPUTY TREASURY SECRETARY WAS AN ASSISTANT TREASURY SECRETARY IN THE CARTER ADMINISTRATION AT LEAST THE CARTER FOLKS ARE DELIGHTED TO SEE WARREN CHRISTOPHER RUNNING THE STATE DEPARTMENT HE WAS DEPUTY SECRETARY IN THE CARTER ADMINISTRATION AND WILLIAM PERRY SERVING AS NO 2 AT THE DEFENSE DEPARTMENT HE WAS AN UNDERSECRETARY DURING THE CARTER YEARS ANTHONY LAKE PRESIDENT CLINTON'S NATIONAL SECURITY ADVISER AND DEPUTY SAMUEL BERGER ARE BOTH OLD CARTER STATE DEPARTMENT HANDS BUT NONE OF THIS IS A SURPRISE THERE'S NO EASY WAY TO GET HANDSON EXPERIENCE CONDUCTING FOREIGN POLICY OR RUNNING AN ARMY WITHOUT GOVERNMENT SERVICE THE CLINTON PEOPLE HAD NO OTHER PLACE TO TURN FOR DEMOCRATIC RECRUITS BUT THE BIG PERFORMERS FROM THE CARTER WHITE HOUSE ARE ALL MISSING THE NAMES RING OUT FROM THE PAST HAMILTON JORDAN JODY POWELL JACK WATSON ROBERT BECKEL ANNE WEXLER TIMOTHY KRAFT GERALD RAFSHOON MR MOORE ROBERT LIPSHUTZ WILLIAM CABLE JAMES FREE AND FROM MR MONDALE'S STAFF RICHARD MOE JAMES JOHNSON MIKE BERMAN THEY'RE ALL ON THE OUTSIDE LOOKING IN ALMOST ALL OF THE OLD BUT STILL YOUNG CARTERMONDALE HANDS WHEN PRESSED INSIST THEY REALLY DON'T WANT A JOB IN THE NEW ADMINISTRATION SOME OF THEM MAY ACTUALLY MEAN IT SAYS MR SCHNEIDERS THE FORMER BARTENDER WHO BECAME A KEY CARTER ADVISER HE HIMSELF NOW RUNS HIS OWN POLLING AND POLITICAL CONSULTING BUSINESS AND HE'S MAKING A VERY COMFORTABLE LIVING ADVISING GIANT DRUG MAKERS AND HEALTH INSURERS HE SURELY MEANS IT WHEN HE SAYS HE ISN'T INTERESTED IN A WHITE HOUSE JOB THE AMAZING FACT IS THAT FOR ALL OF THE ABUSE HEAPED UPON THEM WHEN THEY WERE TRYING TO RUN THE PUBLIC SECTOR MOST OF THE CARTER INSIDERS ARE MAKING TIDY SUMS WORKING FOR THE PRIVATE SECTOR MR MOORE AT WASTE MANAGEMENT IS JUST ONE EXAMPLE MR JORDAN IS DOING QUITE NICELY AS VICE CHAIRMAN OF WHITTLE COMMUNICATIONS LP IN KNOXVILLE TENN MR POWELL MR CARTER'S PRESS SECRETARY HEADS A PUBLICRELATIONS OFFICE IN WASHINGTON HIS FIRM JUST BOUGHT OUT THE COMPANY OF MR BECKEL WHO WAS ONE OF MR CARTER'S CONGRESSIONAL LIAISON PEOPLE MR JOHNSON A KEY AIDE TO MR MONDALE HE HELPED RUN HIS LANDSLIDE PRESIDENTIAL DEFEAT IN 1984 HOLDS ONE OF THE BESTPAYING JOBS IN WASHINGTON CHAIRMAN OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANOTHER MONDALE AIDE MR MOE RUNS THE NATIONAL TRUST FOR HISTORIC PRESERVATION WHERE HE'S HAVING THE TIME OF HIS LIFE FORMER CARTER WHITE HOUSE AIDE ANNE WEXLER IS ANOTHER ON THE OUTSIDE MS WEXLER HEADS A HIGHLY PROFITABLE CONSULTING AND LOBBYING BUSINESS SHE DID HER BUSINESS NO HARM WHEN SHE JOINED PRESIDENT CLINTON AND SEVERAL OTHERS FOR DINNER AT A DOWNTOWN RESTAURANT THE OTHER NIGHT ALTHOUGH SHE REPORTEDLY SOUGHT A CLINTON CABINET POST SHE SAYS NOW WE DON'T NEED JOBS MS WEXLER'S HUSBAND AMERICAN UNIVERSITY PRESIDENT JOSEPH DUFFEY IS ONE OF THE FEW FORMER CARTER PEOPLE WHO IS IN LINE FOR A JOB MR DUFFEY WHO WAS CHAIRMAN OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES IN THE CARTER YEARS IS BEING NOMINATED TO HEAD THE US INFORMATION AGENCY OF COURSE IT ALSO PROBABLY DOESN'T HURT THAT WHEN HE LOST A SENATE CAMPAIGN IN CONNECTICUT A COUPLE OF DECADES AGO HIS NEW HAVEN OFFICE WAS RUN BY A YOUNG LAW STUDENT NAMED BILL CLINTON 9303240166 930324 WHO'S NEWS VIDEOCART INC VIDEOCART INC CHICAGO RONALD E SPEARS 44YEAROLD PRESIDENT OF THIS MAKER OF VIDEO DISPLAYS ATTACHED TO GROCERY SHOPPING CARTS WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER HE SUCCEEDS JOHN MALEC 48 WHO CONTINUES AS CHAIRMAN 9303240165 930324 BOARD OF CONTRIBUTORS WHEN IT'S WRONG TO BE RIGHT BY IRVING KRISTOL LIFE IS TOO COMPLICATED TO BE ENCOMPASSED BY THE HUMAN INTELLECT WITH THE RESULT THAT THERE ARE MOMENTS WHEN IT IS WRONG TO DO THE RIGHT THING THE REASON IS THAT THE RIGHT THING IS DEFINED BY A SET OF ABSTRACT PRINCIPLES THAT SERVE AS A GUIDE TO BEHAVIOR WHILE THERE ARE TIMES WHEN THESE PRINCIPLES COLLIDE SO BRAZENLY WITH REALITY THAT IT IS SENSIBLE TO PERMIT CIRCUMSTANCES TO TRUMP PRINCIPLES IN POLITICS UNFORTUNATELY SUCH TIMES ARE NOT INFREQUENT LET ME OFFER AN EXAMPLE OF SUCH A CASE IN 1981 IRAQ WAS CONSTRUCTING A NUCLEAR FACILITY THAT SEEMED ABLE IN THE NEAR FUTURE TO PROVIDE SADDAM HUSSEIN WITH AT LEAST SOME NUCLEAR WEAPONS THE ISRAELIS ALARMED AT THE PROSPECT BOMBED THE FACILITY AND IN EFFECT PUT IT OUT OF COMMISSION THE UNITED NATIONS WAS OUTRAGED AT THIS ACT OF AGGRESSION AND THERE WAS A VOTE ON A MOTION TO CONDEMN ISRAEL THE US JOINED JUST ABOUT EVERYONE ELSE IN VOTING TO CONDEMN BUT WHAT IF ISRAEL HAD NOT ACTED SO AGGRESSIVELY WHAT IF WHEN IRAQ INVADED KUWAIT IT POSSESSED A HANDFUL OF NUCLEARTIPPED MISSILES WOULD THE US HAVE DARED TO INTERVENE WOULD THERE HAVE BEEN A GULF WAR AND IF WE HAD NOT INTERVENED AS IT IS QUITE CERTAIN WE WOULD NOT HAVE WOULD WE NOT TODAY HAVE TO ACCEPT SADDAM'S IRAQ AS THE DOMINANT POWER IN THE NEAR EAST CONTROLLING HOWEVER INDIRECTLY ALL THE OIL RESOURCES IN THAT AREA IS THAT A SITUATION WE WOULD BE COMFORTABLE WITH WASN'T IT BETTER THAT IN THE EVENT WE WERE ABLE TO FIGHT AND WIN THE GULF WAR I HAVE DISCUSSED THIS QUESTION WITH PEOPLE WHO WERE IN THE STATE DEPARTMENT AND THE WHITE HOUSE IN 1981 AND WHAT I USUALLY GET IS THE AFFIRMATION THAT WE DID INDEED DO THE RIGHT THING BECAUSE WE COULD NOT PUT OURSELVES IN THE POSITION OF SEEMING TO APPROVE CROSSBORDER AGGRESSION WHICH IS OUTLAWED BY THE UN CHARTER THIS PRINCIPLE HAD TO BE SUSTAINED ON THE OTHER HAND THESE SAME PEOPLE ADMIT WE ARE VERY HAPPY THAT ISRAEL ENGAGED IN THIS VIOLATION EVEN THOUGH WE CENSURED ISRAEL FOR IT WHEN I THEN INQUIRE FURTHER ARE YOU SAYING THAT WE WERE RIGHT TO DO THE WRONG THING BUT ISRAEL WAS WRONG TO DO THE RIGHT THING THEY PLEAD A HEADACHE AND GO EARLY TO BED SUCH HEADACHES ARE BOUND TO OCCUR FREQUENTLY WHERE WE IGNORE A FIRST LAW OF POLITICS THERE ARE OCCASIONS WHERE CIRCUMSTANCES TRUMP PRINCIPLES STATESMANSHIP CONSISTS NOT IN BEING LOYAL TO ONE'S AVOWED PRINCIPLES THAT'S EASY BUT IN RECOGNIZING THE OCCASIONS WHEN ONE'S PRINCIPLES ARE BEING TRUMPED BY CIRCUMSTANCES THE AVERAGE STATESMAN WILL EXTEND SUCH RECOGNITION GRUDGINGLY AND IN A RESIGNED DEFEATIST WAY THE MORE CREATIVE STATESMAN ONE WHO POSSESSES SOME POLITICAL IMAGINATION WILL SEE SUCH OCCASIONS AS POSSIBLE OPPORTUNITIES FOR RENEWED POLITICAL SELFDEFINITION SELFDEFINITION IS A PERMANENT PROBLEM FOR POLITICAL PARTIES IN A MODERN DEMOCRACY THE ADVENT OF NEW GENERATIONS TOGETHER WITH TECHNOLOGICAL AND SOCIAL CHANGE CHALLENGE TRADITIONAL PRINCIPLES THE INITIAL INSTINCTIVE RESPONSE OF ALL PARTIES IS TO CHANGE THE PEOPLE SO AS TO MATCH THE PARTY'S PRINCIPLES BUT CHANGING PEOPLE IS HARD AND IS USUALLY BEYOND THE POWER OF POLITICS RELIGION CAN SOMETIMES MANAGE IT POLITICS ALMOST NEVER THE DECLINE OF POLITICAL PARTIES IS ASSOCIATED WITH A RELUCTANCE TO MATCH PRINCIPLES TO PEOPLE LEST THE PARTIES BE VULNERABLE TO AN ACCUSATION OF PRAGMATISM BUT IT IS PRECISELY THIS RELUCTANCE THAT MAKES FOR A PRAGMATIC IE GRUDGING DEFEATIST RESPONSE RATHER THAN A BOLD CREATIVE ONE THIS IS THE SITUATION IN WHICH AMERICAN POLITICAL PARTIES FIND THEMSELVES TODAY BOTH THE REPUBLICAN AND DEMOCRATIC PARTIES HAVE PRINCIPLES THAT DEFINE THEM AS PARTIES BUT THESE PRINCIPLES ARE NOW BADLY TARNISHED BY THE FACT THAT THEY ARE GRIMLY HELD TO EVEN THOUGH TIME AND AGAIN THEY HAVE BEEN TRUMPED BY CIRCUMSTANCE THAT IS WHY THE RHETORIC OF BOTH PARTIES IS SO HOLLOW THEY HAVE NOT IN THE POSTWORLD WAR II ERA PRODUCED STATESMEN WITH SUFFICIENT IMAGINATION TO COPE WITH NEW CHALLENGING CIRCUMSTANCES THE LAST SUCH STATESMAN WAS FRANKLIN D ROOSEVELT WHO CREATED THE MODERN DEMOCRATIC PARTY AN INSTITUTION HOWEVER THAT IS NOW ONLY AN ECHO OF ITS FORMER SELF THE PEOPLE OF THE US AND IT IS CLEAR OF THE OTHER WESTERN DEMOCRACIES HAVE INSTINCTIVELY OPTED FOR A VERSION OF WHAT CAN FAIRLY BE CALLED WELFARE STATE CAPITALISM THE MOVEMENT TOWARD SUCH AN ECONOMY AND SUCH A SOCIETY HAS ABOUT IT THE KIND OF IRRESISTIBLE POWER THAT THE MOVEMENT TOWARD UNIVERSAL MANHOOD SUFFRAGE HAD IN THE 19TH CENTURY OR THE MOVEMENT TOWARD WOMEN'S SUFFRAGE IN OUR OWN CENTURY BUT BOTH OF OUR POLITICAL PARTIES ARE EXTREMELY UNCOMFORTABLE WITH WELFARE STATE CAPITALISM THE REPUBLICANS BECAUSE THE IDEA OF THE WELFARE STATE OFFENDS THEM THE DEMOCRATS BECAUSE THEY FIND IT HARD TO SAY CAPITALISM WITHOUT GAGGING IN BOTH CASES THE PARTIES' PRINCIPLES ARE AT ODDS WITH THE CIRCUMSTANTIAL REALITY AND IN BOTH CASES ONLY GRUDGING SULLEN ACCOMMODATIONS ARE MADE THE PEOPLE BECOME EXASPERATED THE DEMOCRATS THEN INTERPRET THIS EXASPERATION AS A DESIRE FOR AN EXPANSION OF THE WELFARE STATE INTO A FULLBLOWN THERAPEUTIC STATE WHILE THE REPUBLICANS CONCLUDE THAT THE STATE ITSELF IS THE PRIMARY OBSTACLE TO THE PURSUIT OF HAPPINESS THEY ARE BOTH WRONG BUT THEY ARE POWERFULLY ADDICTED TO THEIR WRONGNESS WHICH FLOWS FROM THEIR ORIGINAL PRINCIPLES AS A RESULT BOTH PARTIES ARE SUFFERING FROM A LEAKAGE OF LEGITIMACY AND RELY ON MISSTEPS BY THE OTHER PARTY FOR THEIR ELECTORAL SUCCESSES DESPITE EVERYTHING HE SAID DURING THE CAMPAIGN PRESIDENT CLINTON AND THE DEMOCRATS CANNOT CONTROL THEIR IMPULSE TO SUPPLEMENT CAPITALISM WITH A STRONG DOSE OF DIRIGISME AND PERSIST IN PUSHING THE WELFARE STATE INTO A MATERNAL EMBRACE OF ALL THOSE WHO IN OUR INEQUITABLE SOCIETY CLAIM TO HAVE BEEN VICTIMIZED THE REPUBLICANS GIVE THE IMPRESSION OF STILL WANTING TO VOTE AGAINST SOCIAL SECURITY ARE HYPNOTIZED BY THE DEFICIT AND WHEN ADDRESSING THE EXCRESCENCES OF THE WELFARE STATE AS THEY IMPINGE ON WHAT USED TO BE CALLED THE QUALITY OF LIFE NOW DESIGNATED AS THE SOCIAL ISSUES THEY SIMPLY DEMONSTRATE THE INADEQUACY OF A BUSINESSLIKE MODE OF THINKING TO THIS INCREASINGLY IMPORTANT DIMENSION OF MODERN LIFE IT IS INTERESTING TO NOTE WHAT HAS HAPPENED TO THAT PHRASE THE QUALITY OF LIFE ORIGINALLY INVENTED BY LIBERAL SOCIAL SCIENTISTS WHO FOCUSED ON SUCH SOCIAL INDICATORS AS CRIME MORTALITY MORBIDITY TEENAGE ILLEGITIMACY EDUCATIONAL ACHIEVEMENT AND OTHER MEASURABLE INDEXES IT HAS LARGELY FALLEN OUT OF FAVOR WITH THEM BECAUSE THE STATISTICS TEND TO REVEAL THE PERVERSE CONSEQUENCES OF LIBERAL REFORMS CONSERVATIVES OF COURSE NEVER DID FEEL COMFORTABLE WITH THE NOTION THAT POLITICS HAD SOME SIGNIFICANT CONNECTION WITH THE QUALITY OF LIFE THE REPUBLICAN PARTY FOR THE MOST PART HAS TENDED TO THINK THAT ECONOMIC QUANTITIES PERCAPITA INCOME FOR INSTANCE OR LOWER INFLATION WERE WHAT POLITICS AND GOVERNMENT SHOULD FOCUS ON LEAVING ALL OTHER ASPECTS OF THE PURSUIT OF HAPPINESS TO THE INDIVIDUAL THERE IS SOME WISDOM HERE BUT WELFARE STATE CAPITALISM IS NOT AUTOMATICALLY COMPATIBLE WITH SUCH AN APPROACH IT HAS TO BE MADE COMPATIBLE IN PART BY LIMITING THE ENCROACHMENT OF THE STATE BUT IN EVEN LARGER PART BY ACTIVELY ENCOURAGING SUCH NONSTATE INSTITUTIONS AS CHURCHES FAMILIES PRIVATE SCHOOLS ETC IN 12 YEARS OF REPUBLICAN ADMINISTRATIONS VERY LITTLE SERIOUS ATTENTION WAS DEVOTED TO ANY SUCH AGENDA ONE COULDN'T EVEN GET THE TWO REPUBLICAN PRESIDENTS TO FIGHT FOR A RADICAL INCREASE IN THE TAX DEDUCTION FOR CHILDREN BECAUSE THE TREASURY ALONG WITH THE OFFICE OF MANAGEMENT AND BUDGET THOUGHT IT WOULD UNBALANCE THE BUDGET IN THE END THEREFORE IT WAS THE DEMOCRATS WHO UNBALANCED THE BUDGET AND THEY DID IT THEIR WAY THE BASIC PHILOSOPHIC DIFFERENCE BETWEEN THE TWO PARTIES GOES VERY DEEP INDEED THE DEMOCRATS BELIEVE THAT CIVIC VIRTUE IS ENCOURAGED AND SUSTAINED BY POPULIST PARTICIPATION IN POLITICS AND HAVE LITTLE INTEREST IN THE INDIVIDUAL PRIVATE VIRTUES AS TRADITIONALLY DEFINED THE REPUBLICANS IN CONTRAST WHILE MAKING EMPTY ROUTINE GESTURES TOWARD SUCH VIRTUES BELIEVE THEM TO BE SO PRIVATE SO PERSONAL SO MUCH A FORM OF PROPERTY OWNERSHIP BY INDIVIDUALS THAT THEY ARE MOST COMFORTABLE WHEN THEY ARE EXCLUDED FROM PUBLIC DISCOURSE ALTOGETHER BUT IT IS PRECISELY THE COLLAPSE OF THE CONNECTION BETWEEN PRIVATE VIRTUE AND CIVIC VIRTUE THAT CREATES SO MANY OF OUR MOST DISTURBING SOCIAL PROBLEMS IF OUR TWO PARTY SYSTEM IS TO SURVIVE WE SHALL NEED A POLITICAL REFORMATION OF BOTH PARTIES THAT WILL SEEK NOT A RETURN TO BASIC PRINCIPLES AS WE SO OFTEN HEAR BUT RATHER A REEXAMINATION AND RECONSTRUCTION OF THOSE PRINCIPLES IN THE LIGHT OF OUR CIRCUMSTANTIAL REALITIES FOR THAT TO OCCUR WE NEED IMAGINATIVE POLITICAL LEADERSHIP THAT RECOGNIZES THAT IN POLITICS IT IS NEVER RIGHT TO BE WRONG NO MATTER HOW SELFRIGHTEOUS IT MAKES YOU FEEL FOR THE DEMOCRATS HAVING WON THE LAST ELECTION AGAINST AN ENFEEBLED REPUBLICAN ADMINISTRATION SUCH RECOGNITION WILL COME HARD BUT A YEAR OR SO FROM NOW THEY WILL HAVE DISCOVERED THAT THEIR AGENDA A MIXTURE OF MORE INTENSE GOVERNMENT INVOLVEMENT IN THE ECONOMY WITH THE COUNTERCULTURAL VALUES OF THE 1960S IS ANACHRONISTIC THEY SHOULD LOOK TO THE EXPERIENCE OF PRESIDENT FRANCOIS MITTERRAND IN FRANCE FOR THE REPUBLICANS IT WILL INVOLVE A RECOGNITION THAT THEIR TRADITIONAL MIXTURE ROUTINE ECONOMIC CONSERVATISM PLUS AN INDIFFERENCE TO SOCIALCULTURAL ISSUES IS JUST AS ANACHRONISTIC THEY SHOULD LOOK TO THE EXPERIENCE OF PRIME MINISTER JOHN MAJOR IN BRITAIN IT'S A MESS WHICH IS WHY THE AMERICAN PEOPLE TODAY ARE SO ANTIPOLITICAL MR KRISTOL AN AMERICAN ENTERPRISE INSTITUTE FELLOW COEDITS THE PUBLIC INTEREST AND PUBLISHES THE NATIONAL INTEREST 9303240164 930324 DIVIDEND NEWS JEFFERSON BANKSHARES INC JEFFERSON BANKSHARES INC CHARLOTTESVILLE VA SAID ITS BOARD APPROVED A 2FOR1 STOCK SPLIT AND 11 DIVIDEND INCREASE THE SPLIT IS PAYABLE APRIL 30 TO SHARES OF RECORD APRIL 2 THE QUARTERLY DIVIDEND WHICH INCREASES TO 15 CENTS FROM 135 CENTS ON A POSTSPLIT BASIS ALSO IS PAYABLE APRIL 30 TO SHARES OF RECORD APRIL 5 JEFFERSON A BANK HOLDING COMPANY CURRENTLY HAS ABOUT 73 MILLION SHARES OUTSTANDING 9303240163 930324 WHO'S NEWS ASARCO INC ASARCO INC NEW YORK DAVID B WOODBURY FORMER VICE PRESIDENT OF HUMAN RESOURCES OF FERRO CORP CLEVELAND WAS NAMED VICE PRESIDENT HUMAN RESOURCES OF THIS MINING AND CHEMICAL COMPANY MR WOODBURY 52 YEARS OLD SUCCEEDS 64YEAROLD JOHN R CORBETT VICE PRESIDENT INDUSTRIAL RELATIONS AND PERSONNEL WHO WILL RETIRE NEXT MONTH AFTER 38 YEARS WITH THE COMPANY 9303240162 930324 INTERNATIONAL COURT CALLS YELTSIN'S POWER MOVE ILLEGAL SEVERAL LEGISLATORS DOUBT OPPONENTS HAVE VOTES TO IMPEACH PRESIDENT BY ADI IGNATIUS AND LAURIE HAYS STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW RUSSIA'S CONSTITUTIONAL COURT RULED AGAINST PRESIDENT BORIS YELTSIN SETTING IN MOTION A PROCESS THAT IN ITS MOST EXTREME OUTCOME COULD LEAD TO THE PRESIDENT'S IMPEACHMENT BUT SEVERAL PARLIAMENTARY DELEGATES SAID MR YELTSIN'S OPPONENTS AREN'T LIKELY TO GET THE TWOTHIRDS VOTE OF THE CONGRESS OF PEOPLE'S DEPUTIES NEEDED TO IMPEACH MR YELTSIN'S GOVERNMENT KEPT ON THE OFFENSIVE AGAINST ITS FOES VICE PREMIER BORIS FYODOROV CALLED FOR THE DISMISSAL OF THE CENTRAL BANK CHIEF VIKTOR GERASHCHENKO WHO ANSWERS TO THE ANTIYELTSIN RUSSIAN PARLIAMENT MR FYODOROV BLAMED THE BANK CHIEF FOR LOOSE CREDIT POLICIES THAT HAVE FUELED RUSSIA'S GALLOPING INFLATION BUT THE MAIN EVENT OF THE DAY WAS THE CONSTITUTIONAL COURT'S RULING ON MR YELTSIN'S STATEMENT SATURDAY IN WHICH HE SAID HE WOULD SEIZE EMERGENCY POWERS TO PUSH THROUGH A NATIONAL REFERENDUM ON HOW RUSSIA SHOULD BE GOVERNED THOUGH THE COURT'S VERDICT WAS MIXED IT PASSED BY A VOTE OF 9 TO 3 IT APPEARS TO LIMIT THE PRESIDENT'S MANEUVERING ROOM THE HEAD OF THE COURT VALERY ZORKIN HANDED MR YELTSIN A COPY OF THE VERDICT AT A MOSCOW GRAVESITE JUST AFTER A FUNERAL FOR THE PRESIDENT'S MOTHER INTERFAX NEWS AGENCY REPORTED THE COURT RULED THAT MR YELTSIN WAS WITHIN HIS RIGHTS IN CALLING FOR A NATIONAL VOTE OF CONFIDENCE IN HIS PRESIDENCY BUT IT SAID THAT IN TRYING TO GRAB EMERGENCY POWERS MR YELTSIN HAD SIDESTEPPED RUSSIA'S LEGISLATURE AND VIOLATED THE CONSTITUTIONAL PRINCIPLE OF SEPARATION OF POWERS WHILE THE COURT MADE NO RECOMMENDATION ABOUT IMPEACHMENT PARLIAMENTARY CHAIRMAN RUSLAN KHASBULATOV A CHIEF RIVAL OF MR YELTSIN TOLD A NEWS CONFERENCE IT IS CLEAR AS DAY THAT THERE IS EVERY GROUND TO START IMPEACHMENT PROCEDURES HE ADDED THERE IS NO DOUBT ABOUT IT A CONGRESS SHOULD BE CONVENED ON THE BASIS OF THE RULING OF THE CONSTITUTIONAL COURT RESPONDING TO WESTERN LEADERS' OVERWHELMING SUPPORT OF MR YELTSIN MR KHASBULATOV ATTEMPTED TO PORTRAY HIMSELF AS A MAN NO LESS COMMITTED TO DEMOCRACY AND FREEMARKET REFORMS THAN THE PRESIDENT HE IS TRYING TO OUST WE FACE TODAY AN OUTRIGHT ATTEMPT AT A COUP D'ETAT MR KHASBULATOV SAID INTERNATIONAL SUPPORT FOR MR YELTSIN MR KHASBULATOV SAID WAS BASED ON A DISTORTED IMPRESSION THAT THERE IS A STRUGGLE BETWEEN REFORMERS AND ANTIREFORMERS TO FOLLOW THROUGH WITH IMPEACHMENT PARLIAMENTARY LEADERS WOULD HAVE TO CONVENE AN EMERGENCY SESSION OF THE CONGRESS OF PEOPLE'S DEPUTIES RUSSIA'S HIGHEST LEGISLATIVE BODY THE LEGISLATURE'S 1033 DELEGATES WOULD NEED SEVERAL DAYS TO TRAVEL TO MOSCOW FROM THEIR HOMES AND RUSSIAN NEWS REPORTS SAID THE SESSION IS EXPECTED TO BEGIN FRIDAY IN THE BACK ROOMS THEY ARE COUNTING VOTES SAID IONA ANDRONOV A MEMBER OF PARLIAMENT AND FREQUENT CRITIC OF MR YELTSIN WE NEED EXACTLY TWOTHIRDS WE HAVE APPROXIMATELY THIS BUT NOT ENOUGH RIGHT NOW SASHA LUBIMOV A DEPUTY WHO SUPPORTS THE PRESIDENT ALSO SPECULATED THAT PARLIAMENT WILL COME UP SHORT HE PREDICTED RUSSIA'S POWER STRUGGLE WILL END IN A STANDSTILL WITHOUT VIOLENCE MR YELTSIN WANTS TO START A STATE OF EMERGENCY BUT HE HAS NO POWER TO MANAGE IT HE SAID BUT PARLIAMENT IS TOO WEAK TO IMPEACH HIM EVEN IF PARLIAMENT VOTES TO IMPEACH MR YELTSIN HAS VOWED TO PRESS AHEAD WITH HIS REFERENDUM PLANNED FOR APRIL 25 BUT A REFERENDUM SHOWING POPULAR SUPPORT FOR MR YELTSIN WOULDN'T NECESSARILY RESOLVE THE IMPASSE WHAT MIGHT DO SO WOULD BE NEW ELECTIONS FOR PRESIDENT AND PARLIAMENT DESPITE THE TALK OF IMPEACHMENT COMPROMISE REMAINS IN THE AIR THE CONSTITUTIONAL COURT THOUGH IT HAS NO FURTHER OFFICIAL ROLE IN RESOLVING THE POWER STRUGGLE TRIED TO URGE THE PRESIDENT AND PARLIAMENT TO FIND A COMPROMISE LEGAL SOURCES TOLD INTERFAX THE COURT DELETED FROM ITS RESOLUTION A STATEMENT THAT THE COURT'S DECISION COULD SERVE AS THE BASIS FOR IMPEACHMENT PROCEEDINGS THE CONSTITUTIONAL COURT SHARES THE CONCERN VOICED BY THE PRESIDENT IN HIS ADDRESS BUT THE MEANS HE HAS CHOSEN RUN COUNTER TO HIS GOAL THE COURT SAID THE COURT WOULD LIKE TO FIND CONSTITUTIONAL MEANS AND METHODS FOR OVERCOMING THE CRISIS OF POWER THE DECISION SAID EVEN RUSSIAN VICE PRESIDENT ALEXANDER RUTSKOI WHO INITIALLY BRANDED MR YELTSIN'S DECLARATION UNCONSTITUTIONAL AND WOULD BE HIS LIKELY SUCCESSOR NOW SEEMS TO WANT TO MEND FENCES WITH THE PRESIDENT MR RUTSKOI IS REALLY BEHIND THE PRESIDENT SAID AN AIDE ANDREI FYODOROV HE MADE THE STEPS HE TOOK NOT BECAUSE HE'S AGAINST THE PRESIDENT BUT BECAUSE HE DOESN'T WANT THE PRESIDENT TO TAKE STEPS THAT HE SHOULDN'T MR FYODOROV SAID THE ANTIYELTSIN FORCES LACKED VOTES BECAUSE OF DEPUTIES' FEARS THERE IS LESS OF A CHANCE OF IMPEACHMENT BECAUSE EVERYBODY UNDERSTANDS THAT IMPEACHMENT WILL START MORE TROUBLE THAN IF HE STAYED HE SAID FOR ANOTHER DAY RUSSIA'S MILITARY REMAINED ON THE SIDELINES GENNADY IVANOV CHIEF OF MILITARY REFORM IN THE DEFENSE MINISTRY TOLD JOURNALISTS THAT THE ARMY IS OUTSIDE POLITICS AND DOESN'T WANT ANY BLOODSHED MILITARY LEADERS HAVE PLEDGED TO REMAIN NEUTRAL BUT THE DEFENSE MINISTER AND OTHER KEY MINISTERS OF STATE SECURITY AND THE INTERIOR JOINED THE CABINET SUNDAY IN SIGNING A RESOLUTION SUPPORTING MR YELTSIN ONE FOREIGN MILITARY ATTACHE IN MOSCOW SAID THERE ARE REPORTS OF OPPOSITION TO MR YELTSIN AMONG MILITARY OFFICERS IN THE FAR EAST THOUGH THAT COULDN'T BE CONFIRMED THERE HAVE BEEN NO REPORTS OF VIOLENCE MR YELTSIN STILL HASN'T ISSUED A TEXT OF THE DECREE THAT WAS MEANT TO IMPLEMENT HIS TELEVISED ANNOUNCEMENT THAT HE WAS SEIZING ADDITIONAL POWERS ITS CONTINUING ABSENCE HAS HAMPERED ATTEMPTS BY MR YELTSIN'S CRITICS TO ASSAIL HIS ACTIONS MR FYODOROV THE AIDE TO VICE PRESIDENT RUTSKOI SPECULATED THAT PARLIAMENT MIGHT DROP ITS THREAT TO IMPEACH MR YELTSIN IF HE ABANDONS PLANS TO PUBLISH THE DECREE MR YELTSIN DID ISSUE A DECREE YESTERDAY WARNING LOCAL OFFICIALS THEY WOULD BE SACKED IF THEY BLOCKED OR FAILED TO CARRY OUT HIS ORDERS IT SEEMED TO BE A WARNING TO LOCAL ADMINISTRATORS NOT TO INTERFERE WITH THE REFERENDUM 9303240161 930324 TREASURY TO PAY DOWN 300 MILLION OF DEBT WASHINGTON THE TREASURY PLANS TO PAY DOWN 300 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 224 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 227 BILLION THE OFFER WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS MATURING ON JULY 1 AND 26WEEK BILLS MATURING SEPT 30 THE CUSIP NUMBERS ARE 912794D76 FOR THE 13WEEK BILLS AND 912794F82 FOR THE 26WEEK BILLS THE MINIMUM DENOMINATION IS 10000 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST 9303240160 930324 SNARL WHILE YOU WEAR THIS GARB AND MUGGERS WILL FLEE IN TERROR BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DON'T GET ME WRONG I LOVE MY DOG BUT IF KENDALL CROLIUS HAD HER WAY MY PUPPY WOULD BE WITH ME ALL THE TIME WRAPPED AROUND MY NECK MS CROLIUS IS COMBINING HER LOVE OF DOGS AND KNITTING IN A NEW BOOK APPROPRIATELY TITLED KNITTING WITH DOG HAIR AIMED AT TEACHING PEOPLE TO MAKE SCARVES AND SWEATERS FROM ROVER'S TRESSES DUE OUT NEXT JANUARY THE BOOK WAS REJECTED BY EVERY PUBLISHER IN TOWN AND SOME OUT OF TOWN SAYS JIM CHARLTON THE BOOK'S AGENT UNTIL ST MARTIN'S PRESS RECENTLY PICKED IT UP MS CROLIUS A SENIOR VICE PRESIDENT AT AD AGENCY J WALTER THOMPSON CO ATTRIBUTES THE REJECTIONS TO THE PUBLIC'S GENERAL SQUEAMISHNESS ABOUT WEARING DOG HAIR BUT IT'S NOT LIKE SKINNING YOUR CAT TO MAKE A BATHMAT SHE SAYS YOU'RE HARVESTING WHAT WOULD NORMALLY END UP CLOGGING YOUR VACUUM CLEANER ANYWAY MS CROLIUS FIRST SAW THE POSSIBILITIES IN DOGGIE DUDS MORE THAN SIX YEARS AGO WHEN A FRIEND MENTIONED THAT DOG HAIR MAKES FINE YARN MS CROLIUS USED HAIR FROM HER GOLDEN RETRIEVER TO KNIT A SCARF SHE STILL WEARS AND SAYS IS AS SOFT AS CASHMERE SHE COLLECTED BAGS OF HAIR FROM MR CHARLTON'S GREAT PYRENEES OLLIE AND MADE TWO SWEATERS AND SHE HAS KNITTED MITTENS FOR FRIENDS WITH ALTERNATING STRIPES MADE OF HAIR FROM THEIR DOGS AND CATS SOMETHING MADE FROM YOUR PET CAN BE LIKE A MEMENTO OF A LOVED ONE SAYS MS CROLIUS WHOSE DOG HAS SINCE DIED IT'S LIKE CARRYING A LOCK OF HAIR EXCEPT IT'S A LOT OF HAIR AND WARMER AMONG BREEDS BESTSUITED FOR THE WARP AND WOOF ARE GREAT PYRENEES NEWFOUNDLANDS AND SAMOYEDS THE MEXICAN HAIRLESS IS THE WORST PEOPLE CAN SEND THEIR DOG HAIR TO PROFESSIONAL SPINNERS WHOSE ADDRESSES ARE IN THE BOOK THEY WASH THE HAIR SPIN IT AND SEND BACK YARN USUALLY UNDYED DESPITE SUCH PROCESSING OLLIE KNOWS THE SWEATER IS RELATED TO HIM SAYS MR CHARLTON AND OTHER DOGS SNIFF IT COCK THEIR HEADS AND USUALLY GO OFF THE FASHION WORLD IS SKEPTICAL IS THIS A JOKE ASKS A BUYER AT UPSCALE NEW YORK DEPARTMENT STORE BERGDORF GOODMAN BUT AFTER INITIALLY LABELING THE CONCEPT BIZARRE VOGUE KNITTING MAGAZINE'S EDITOR IN CHIEF NANCY J THOMAS SAYS WISTFULLY NOW THAT I DON'T HAVE MY DOG ANYMORE IT WOULD HAVE BEEN NICE TO HAVE A SWEATER MADE FROM MY BELOVED FRECKLES 9303240159 930324 INTERNATIONAL WESTERN BANKS DEFER DEBT OF FORMER SOVIET UNION SPECIAL TO THE WALL STREET JOURNAL FRANKFURT WESTERN CREDITOR BANKS GRANTED THEIR SIXTH 90DAY ROLLOVER ON THE COMMERCIAL DEBT OF THE FORMER SOVIET UNION DEUTSCHE BANK OF GERMANY SAID THE DECISION WAS MADE MONDAY AND APPLIES TO DEBT DUE AT THE END OF MARCH THE BANK SAID BANKS OF WESTERN NATIONS HAVE BEEN GRANTING DEFERRALS ON THE DEBT SINCE DECEMBER 1991 WHILE THEY NEGOTIATE WITH COUNTRIES OF THE FORMER SOVIET UNION ON PAYING BACK THE MONEY THE SOVIET DEBT IS ESTIMATED AT ROUGHLY 70 BILLION AND COMMERCIAL DEBT ACCOUNTS FOR ABOUT 60 OF THAT AMOUNT A COMMITTEE REPRESENTING THE BANKS COORDINATED BY DEUTSCHE BANK HAS GRANTED SIX ROLLOVERS THE LATEST AGREEMENT APPLIES TO ALL LOANS MADE PRIOR TO JAN 1 1991 CREDITOR NATIONS MEANWHILE HAVE YET TO DECIDE ON RUSSIA'S REQUEST TO RESCHEDULE REPAYMENTS OF ITS OFFICIAL DEBTS 9303240158 930324 ENTERPRISE MARKET BOOMS FOR MULTICULTURAL EDUCATIONAL PRODUCTS BUT ENTREPRENEURS MUST TAKE PAINS TO PRACTICE THE SENSITIVITY THEY PREACH BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL EVERY ENTREPRENEUR KNOWS THAT YOU MUST BE SENSITIVE TO MULTICULTURAL ISSUES NOWADAYS BUT PRECIOUS FEW FEEL THAT NEED AS ACUTELY AS MAKERS OF MULTICULTURAL EDUCATIONAL PRODUCTS SINCE THEY SELL PRODUCTS DESIGNED TO DEEPEN STUDENTS' UNDERSTANDING OF THEMSELVES AND OTHER CULTURES IN THIS BURGEONING MARKET THE LAST THING THEY CAN AFFORD IS A REPUTATION FOR PERPETUATING STEREOTYPES YOU NEVER KNOW WHERE YOU'RE GOING TO STEP ON A LAND MINE SAYS JEROME WILLIAMS AN AFRICANAMERICAN ASSISTANT PROFESSOR OF MARKETING AT PENNSYLVANIA STATE UNIVERSITY BIG RISE IN DEMAND DEMAND IN THE COTTAGE INDUSTRY OF MULTICULTURAL EDUCATIONAL PRODUCTS HAS RISEN TREMENDOUSLY IN THE PAST FIVE YEARS AS TEACHERS LIBRARIANS PARENTS AND COMMUNITY GROUPS INCREASINGLY SEEK BOOKS AND OTHER ITEMS THAT ACCURATELY REFLECT MINORITIES' CULTURAL EXPERIENCES SAYS CHARLES TAYLOR EXECUTIVE DIRECTOR OF THE MULTICULTURAL PUBLISHERS EXCHANGE AN ASSOCIATION OF SMALL PRESSES IN MADISON WIS THE NUMBER OF SMALL MINORITYOWNED PRESSES GREW NINEFOLD TO MORE THAN 200 IN THE PAST DECADE MR TAYLOR NOTES HE SAYS THAT HIS ASSOCIATION'S 1993 CATALOG OF MEMBERS' BOOKS AND OTHER PRODUCTS WILL RUN 78 PAGES 50 LONGER THAN LAST YEAR AS DEMAND FOR MATERIALS EXPANDS SO DOES THE POTENTIAL FOR MARKETING BLUNDERS MINNESOTA EDUCATIONAL COMPUTING CORP A SOFTWARE DEVELOPER IN MINNEAPOLIS STUMBLED RECENTLY WITH FREEDOM AN EDUCATIONAL COMPUTER GAME STUDENT PLAYERS PRETEND TO BE AFRICANAMERICANS USING THE UNDERGROUND RAILROAD TO ESCAPE SLAVERY DURING THE 1830S THE CHARACTERS SPEAK IN DIALECT AND SOMETIMES GET RETURNED TO THEIR MASTERS LAST FALL OFFICIALS FROM A NUMBER OF SCHOOLS AROUND THE COUNTRY COMPLAINED THAT THEY FELT UNCOMFORTABLE WITH THE SLAVES SPEAKING IN DIALECT MINNESOTA EDUCATIONAL DECIDED TO REVISE ITS GAME USING STANDARD ENGLISH THEN THE COMPANY SWITCHED GEARS YANKING THE PRODUCT OFF THE MARKET AND CANCELING THE REVISION AFTER A GROUP OF AFRICANAMERICAN PARENTS IN MERRILLVILLE IND INSISTED THAT THE GAME TRIVIALIZED A DEEPLY PAINFUL AFRICANAMERICAN EXPERIENCE IF YOU ARE GOING TO SERVICE SCHOOLS YOU MUST BE SENSITIVE TO EVERYONE'S HERITAGE SAYS DEAN KEPHART A COMPANY SPOKESMAN THE SMALL COMPANY IS OWNED BY A NONMINORITY INVESTMENT FUND IN SOME CASES A MARKETING MISTAKE MAKES NONMINORITY ENTREPRENEURS MORE SENSITIVE ABOUT MULTICULTURAL ISSUES MARY OOSTERHUIS OWNER OF MARY O ARTISTIC CREATIONS INC IN HARTLEY IOWA FASHIONS PAINTED NECKLACES WITH MULTICULTURAL THEMES ONE NECKLACE FEATURES A PAINTED PENDANT WITH CHILDREN'S FACES AND THE SLOGAN FRIENDS SMILE IN THE SAME LANGUAGE AT A SAN FRANCISCO PROFESSIONAL CONFERENCE A TEACHER CONCERNED ABOUT PERPETUATING ETHNIC STEREOTYPES SUCH AS THE SUPERSTUDIOUS ASIANAMERICAN STUDENT COMPLAINED THAT THE ONLY CHILD DEPICTED ON THE PENDANT WEARING EYEGLASSES WAS ASIANAMERICAN IT'S SURPRISING HOW WITHOUT THINKING YOU CAN OFFEND SOMEONE SAYS MS OOSTERHUIS WHO LIVES AND WORKS IN A RURAL AREA WHERE SHE RARELY ENCOUNTERS MINORITIES IN HER DAILY LIFE MS OOSTERHUIS SAYS THAT SHE HAS SINCE BECOME MORE CAREFUL SHE NOW PAINTS GLASSES ON A NONASIAN CHILD AND ON ANOTHER NECKLACE THAT DEPICTS CHILDREN RIDING A SCHOOL BUS SHE MAKES SURE THAT SHE DOESN'T PLACE AN AFRICANAMERICAN CHILD IN THE BACK OF THE BUS OTHER ENTREPRENEURS HAVE TROUBLE DECIDING WHETHER IT'S WORTHWHILE TO CHANGE A MULTICULTURAL EDUCATIONAL PRODUCT CONSIDER A PLACEMAT MADE BY THE STRAIGHT EDGE INC A SMALL MANUFACTURER IN BROOKLYN NY THE ALPHABET PLACEMAT SHOWS WORDS BEGINNING WITH EACH LETTER AND AN ILLUSTRATION FOR EACH WORD THE WORD INDIAN PLUS A DRAWING OF AN AMERICAN INDIAN IN NATIVE DRESS ACCOMPANY THE LETTER I AT A RECENT PROFESSIONAL CONFERENCE IN LOS ANGELES ONE TEACHER OBJECTED THAT THE INDIAN WAS THE ONLY HUMAN BEING DEPICTED AMONG A GROUP OF OBJECTS AND ANIMALS AN INDIAN IS NOT A THING SHE TOLD A CATALOG DISTRIBUTOR AMY EPSTEIN STRAIGHT EDGE'S PRESIDENT RESPONDS THAT THE INDIAN IMAGE IS CONSISTENT WITH THE COMPANY'S CHOICE OF NOUNS AND PROPER NOUNS TO ILLUSTRATE THE ALPHABET SHE SAYS THE IMAGE IS HISTORICALLY ACCURATE AND NOT PEJORATIVE OR DEGRADING THOUGH THE INDIAN IMAGE WOULD BE EASY TO CHANGE MS EPSTEIN ADDS I'M NOT QUITE SURE WHAT THE ANSWER IS HERE SO THAT'S WHY WE HAVEN'T DONE ANYTHING TO AVOID POSSIBLE TROUBLE MANY ENTREPRENEURS INVOLVE INDIVIDUALS WITH DIRECT CULTURAL EXPERIENCE IN THEIR PRODUCT DEVELOPMENT IN THE CASE OF MULTICULTURAL BOOKS AUTHENTICITY IS A RECURRING ISSUE SAYS PHILIP LEE AN OWNER OF LEE & LOW BOOKS INC A SMALL NEW YORK PUBLISHER OF MULTICULTURAL CHILDREN'S BOOKS ONE EXAMPLE IS THE COMPANY'S NEWLY RELEASED BASEBALL SAVED US A STORY OF A BOY AND FATHER WHO START A BASEBALL LEAGUE AT A JAPANESEAMERICAN INTERNMENT CAMP IN THE CALIFORNIA DESERT DURING WORLD WAR II THE PARENTS OF KEN MOCHIZUKI THE BOOK'S AUTHOR WERE FORCED TO LIVE IN SUCH A CAMP MR LEE SAYS HE ALSO CONSULTED OTHER INDIVIDUALS WHO HAD LIVED IN THE CAMPS BASEBALL PLAYERS WHO PLAYED IN THE CAMPS AND JAPANESEAMERICAN MUSEUMS WITH EXHIBITS ON THE CAMPS THIS CAREFUL ATTENTION CAUGHT A HISTORICAL INACCURACY IN ONE OF THE BOOK'S ILLUSTRATIONS MR LEE SAYS A FORMER INTERNEE NOTICED THAT A US SOLDIER WAS INACCURATELY DRAWN IN A UNIFORM THAT THE US ARMY ACTUALLY WORE MAINLY IN EUROPE THE REVISED ILLUSTRATION SHOWS THE SOLDIER DRESSED IN DESERT BATTLE FATIGUES MUCH OF THE MATERIAL BEING WRITTEN FOR THE MULTICULTURAL MARKET FAILS FOR LACK OF AUTHENTICITY WADING THROUGH A PILE OF UNACCEPTABLE MANUSCRIPTS HAS BECOME A BIG CHALLENGE FOR JUST US BOOKS INC ORANGE NJ A SMALL PUBLISHER OF CHILDREN'S BOOKS ABOUT AFRICANAMERICAN LIFE CHERYL HUDSON AN OWNER SAYS SHE PREFERS PUBLISHING WORKS BY AFRICANAMERICANS AND OFTEN REJECTS WORKS BY WHITE AUTHORS AS LACKING AUTHENTICITY SHE RECALLS A RECENT MANUSCRIPT SUBMITTED BY A WHITE AUTHOR AND ARTIST THE BOOK PORTRAYED AN AFRICANAMERICAN YOUNGSTER IN AN AFRO SO HUGE THAT IT OBSCURED HIS EYES A STYLE MS HUDSON SAYS IS LAUGHABLY OUTOFDATE IN THE AFRICANAMERICAN COMMUNITY SHE REJECTED THE MANUSCRIPT 9303240157 930324 LETTERS TO THE EDITOR YEARS OF URBAN NEGLECT PILES OF DIRTY LAUNDRY' IN YOUR FEB 22 PAGEONE ARTICLE FRESH START BOOTSTRAPPING MAYOR RAISES HOPE OF REVIVAL IN YES PHILADELPHIA YOU FAVORABLY CONTRAST PHILADELPHIA MAYOR EDWARD RENDELL WITH BOSTON MAYOR RAYMOND FLYNN AND NEW YORK MAYOR DAVID DINKINS FOR REFRAINING FROM HANDING BILL CLINTON A LAUNDRY LIST OF SUGGESTED URBAN INITIATIVES THE MORNING AFTER ELECTION DAY WITH ALL DUE RESPECT TO MR RENDELL AFTER 12 YEARS OF URBAN NEGLECT A LOT OF DIRTY LAUNDRY CAN ACCUMULATE BOTH MESSRS FLYNN AND DINKINS FACED MAJOR DEFICIT PROBLEMS WHEN THEY WERE ELECTED AND TOOK THE STEPS NECESSARY TO GENERATE SURPLUSES BOSTON FOR EXAMPLE HAS FEWER EMPLOYEES THAN IT DID IN 1983 HAS BALANCED ITS BUDGET FOR EIGHT YEARS IN A ROW AND HAS RECEIVED CONTINUOUS UPGRADES IN ITS BOND RATING TO THE ACCLAIM OF WALL STREET AND IN RESPONSE TO A STATE GOVERNMENT THAT ELECTS TO GROW ITS OWN BUDGET AT THE EXPENSE OF AID TO CITIES AND TOWNS MANY OF BOSTON'S ADMINISTRATIVE AGENCIES HAVE BEEN CUT BY AS MUCH AS 30 WHILE ESSENTIAL SERVICES HAVE BEEN PRESERVED BOSTON ALSO PRIDES ITSELF ON BEING THE CENTER OF INNOVATION FROM PROJECT PROTECH A YOUTH APPRENTICESHIP PROGRAM PROFILED ELSEWHERE IN THE FEB 22 JOURNAL TO SOME OF THE MOST INNOVATIVE COMMUNITYBASED HOUSING IN THE COUNTRY TO PLANS FOR A NEW EMERGING INDUSTRIES CENTER WHICH WILL DOVETAIL WITH MANY OF PRESIDENT CLINTON'S PLANS FOR THE ECONOMY OF THE 21ST CENTURY BASED ON THESE SUCCESSES AND INNOVATIONS AS WELL AS HIS LEADERSHIP OF THE MAYORS CONFERENCE IN 199192 MAYOR FLYNN WOULD HAVE BEEN DERELICT HAD HE NOT PUT FORWARD HIS IDEAS AND SUGGESTIONS TO THE PRESIDENT FOR WHOM HE HAD CAMPAIGNED SO HARD NO ONE EXPECTS A RETURN TO THE FEDERAL FUNDING LEVELS OF THE 1970S THE REAGANBUSH DEFICITS HAVE SEEN TO THAT BUT WE ARE ALL ENCOURAGED BY A PRESIDENT WHO HAS WELCOMED AMERICA'S MAYORS BACK TO THE WHITE HOUSE AND PROPOSED A STIMULUS PROGRAM THAT IN LARGE PART PARALLELS THE MAYORS' RECOMMENDATIONS FOR ECONOMIC RECOVERY 9303240156 930324 FINANCING BUSINESS US BANKNOTE CORP US BANKNOTE CORP NEW YORK THIS PRINTER OF SECURITY CERTIFICATES SAID IT WOULD REDEEM ITS ROUGHLY 96000 SHARES OF CONVERTIBLE PREFERENCE STOCK OUTSTANDING AT 10 A SHARE PLUS ACCRUED AND UNPAID DIVIDENDS OF THREE CENTS A SHARE HOLDERS OF CONVERTIBLE PREFERENCE SHARES HAVE UNTIL APRIL 23 TO REDEEM THEIR SHARES OR CONVERT THEM INTO COMMON AND CUMULATIVE PREFERRED STOCK EACH SHARE OF CONVERTIBLE PREFERENCE STOCK IS CONVERTIBLE INTO 04621 COMMON SHARE AND 023105 CUMULATIVE PREFERRED SHARE BASED ON THE COMPANY'S COMMON STOCK CLOSING PRICE OF 7 MONDAY THE FRACTIONAL SHARES AT CONVERSION WOULD BE VALUED AT A COMBINED 744 9303240155 930324 BUSINESS BRIEF LIFETIME TURNS DOWN A 220 MILLION BID BY ABBEY HEALTHCARE BOSTON LIFETIME CORP REJECTED A 220 MILLION TAKEOVER BID BY ABBEY HEALTHCARE GROUP INC BUT DIDN'T DOUSE WALL STREET ANALYSTS' EXPECTATIONS OF A TRANSACTION BENEFICIAL TO LIFETIME SHAREHOLDERS LIFETIME SHARES ROSE 4 TO 21625 IN LATE NEW YORK STOCK EXCHANGE TRADING ABBEY SHARES GAINED 25 CENTS TO 1825 IN NATIONAL OVERTHECOUNTER TRADING THE BID WAS ANNOUNCED MONDAY AFTER THE MARKET CLOSED ANTHONY REEVES LIFETIME'S CHAIRMAN AND CHIEF EXECUTIVE SAID ABBEY'S PROPOSAL VALUING LIFETIME AT 2350 A SHARE IN CASH AND ABBEY COMMON STOCK WAS FAR BELOW ANY REASONABLE VALUATION AND CLEARLY INADEQUATE TO LIFETIME'S STOCKHOLDERS BUT ANALYSTS SAID INVESTORS BELIEVE THAT SOME SORT OF TRANSACTION MAY YET TAKE PLACE THE FACT THAT SOMEONE OUT THERE THINKS LIFETIME IS WORTH 23 A SHARE INDICATES THAT THERE IS SOME HIDDEN VALUE IN THE COMPANY AND THAT ABBEY OR SOMEONE ELSE CAN ACQUIRE IT SAID ROBERT MAINS A FIRST ALBANY CORP ANALYST MR MAINS SAID THE VALUE MAY BE THAT DEMAND FOR LIFETIME'S HOME HEALTHCARE SERVICES MAY INCREASE AS THE POPULATION AGES MOREOVER LIFETIME'S LOW COST STRUCTURE MAY ALLOW IT TO REMAIN PROFITABLE AT A TIME WHEN COSTCONTAINMENT PRESSURES COULD HURT THE INDUSTRY HE SAID TIMOTHY AITKEN ABBEY'S CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT SAID ONLY THAT LIFETIME'S RESPONSE WAS PRETTY PREDICTABLE EARLIER THIS WEEK HE SAID THAT IF LIFETIME REJECTED ABBEY'S OFFER ABBEY WOULD CONSIDER OTHER UNSPECIFIED OPTIONS LIFETIME ADOPTED A POISON PILL PLAN LAST OCTOBER THAT ENABLES SHAREHOLDERS TO PURCHASE SHARES AT A DISCOUNT WHEN A 10 STAKE IN THE COMPANY IS ACQUIRED POTENTIALLY DILUTING THE STAKE THE PLAN MAKES IT MORE LIKELY THAT ANY ACQUIRER WILL HAVE TO NEGOTIATE WITH THE COMPANY VIA A SWEETENED BID OR ACT THROUGH A PROXY FIGHT 9303240154 930324 LOEWS TO REDEEM DEBENTURES NEW YORK LOEWS CORP SAID IT WILL REDEEM ITS 9 SENIOR SINKING FUND DEBENTURES DUE 2016 OF WHICH 1587 MILLION PRINCIPAL AMOUNT IS NOW OUTSTANDING THE DEBENTURES WILL BE REDEEMED AND ACCRUED INTEREST WILL BE PAID APRIL 22 AT A PRICE OF 10585 OF THE PRINCIPAL AMOUNT THE REDEMPTION WILL BE FINANCED USING CASH ON HAND SAID A SPOKESMAN FOR LOEWS WHICH HAS INTERESTS IN HOTELS INSURANCE BROADCASTING AND SHIPPING THE DEBENTURES WERE ISSUED IN MARCH 1986 9303240153 930324 CELINA FINANCIAL CLASS A STOCK CELINA OHIO CELINA FINANCIAL CORP SAID ONE OF ITS MEMBER MUTUAL INSURANCE COMPANIES COMPLETED ITS TENDER OFFER FOR THE OUTSTANDING CLASS A SHARES OF CELINA THE COMPLETION MOVES CELINA A GROUP OF THREE INSURANCE COMPANIES A STEP CLOSER TO BEING TAKEN PRIVATE CELINA SAID 596000 SHARES WERE TENDERED REPRESENTING 86 OF THE OUTSTANDING CLASS A SHARES NOT HELD BY CELINA OR ITS AFFILIATES NEXT CELINA WILL HOLD A SPECIAL SHAREHOLDER MEETING AS SOON AS POSSIBLE TO VOTE ON THE BUYOUT 9303240152 930324 MERCK EXPECTS SLOWER PROFIT WILL CUT STAFF SHARES OF DRUG COMPANIES ARE EXPECTED TO REACT TO COMPANY STATEMENT BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WHITEHOUSE STATION NJ MERCK & CO EXPECTS A MODERATION IN 1993 EARNINGS GROWTH PARTICULARLY IN THE FIRST HALF AND SAID IT WILL REDUCE ITS WORKFORCE THROUGH EARLY RETIREMENT AND OTHER PROGRAMS THE MEASURES ARE EXPECTED TO REDUCE WORLDWIDE EMPLOYMENT PRIMARILY IN MANUFACTURING OPERATIONS AND CORPORATE STAFF THIS YEAR BY 1000 PEOPLE OR 26 OF THE 38400 EMPLOYEES THE COST OF THE CUTBACKS WILL RESULT IN AN EXTRAORDINARY CHARGE TO EARNINGS AT A LATER DATE THE MAJOR DRUG MAKER SAID ITS 1993 EARNINGS GROWTH WILL BE AT THE LOW END OF ANALYSTS' PROJECTIONS OF 11 TO 16 IT ALSO SAID FIRSTQUARTER EARNINGS GROWTH WILL BE BELOW EXPECTATIONS WALL STREET ANALYSTS HAD BEEN ESTIMATING FIRSTQUARTER EARNINGS OF ABOUT 55 CENTS A SHARE UP 12 FROM THE 48 CENTS A SHARE EARNED A YEAR AGO ACCORDING TO ZACKS INVESTMENT RESEARCH FOR ALL OF 1993 ESTIMATES AVERAGED 244 A SHARE UP 135 FROM THE 215 A SHARE EARNED FROM OPERATIONS IN 1992 YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MERCK COMMON CLOSED AT 37 A SHARE UP 125 ON VOLUME OF 32 MILLION SHARES THE PHARMACEUTICAL GIANT BLAMED THE INCREASINGLY TURBULENT COMPETITIVE ENVIRONMENT IN THE UNITED STATES HEALTHCARE COSTCONTAINMENT MEASURES WORLDWIDE AND THE UNFAVORABLE EFFECTS OF FOREIGN CURRENCIES MERCK'S FORECAST FOLLOWS SIMILAR PRONOUNCEMENTS BY OTHER PHARMACEUTICAL COMPANIES INCLUDING MARION MERRELL DOW INC AND ELI LILLY & CO WHICH HAVE SAID THAT EARNINGS WILL BE DISAPPOINTING FOREIGNEXCHANGE TRANSLATIONS COULD REDUCE EARNINGS THREE PERCENTAGE POINTS A MERCK SPOKESMAN SAID BY COMPARISON CURRENCY TRANSLATIONS HELPED SALES LAST YEAR ADDING A PERCENTAGE POINT HE ADDED THE COMPANY'S CHOLESTEROLREDUCING DRUGS MEVACOR AND ZOCOR ARE FACING STIFF COMPETITION FROM BRISTOLMYERS SQUIBB CO'S PRAVACHOL AND IS LOSING MARKET SHARE A SPOKESMAN SAID MOREOVER PRICE CONTROLS IN GERMANY ONE OF LARGEST PRESCRIPTIONDRUG MARKETS IN THE WORLD HAVE RESULTED IN A SIGNIFICANT SLOWING IN SALES THE SPOKESMAN ADDED MERCK INTENDS TO HIT ITS TARGETED SALES VOLUME GROWTH OF 8 TO 12 THIS YEAR THE SPOKESMAN SAID 9303240151 930324 WHO'S NEWS MITEL CORP MITEL CORP KANATA ONTARIO ANTHONY P CRISALLI CHIEF OPERATING OFFICER OF THIS TELECOMMUNICATIONS EQUIPMENT CONCERN WILL RETIRE APRIL 1 HIS RESPONSIBILITIES WILL BE ASSUMED BY JOHN MILLARD PRESIDENT AND CHIEF EXECUTIVE MR CRISALLI 63 YEARS OLD JOINED MITEL IN 1986 AS VICE PRESIDENT OF OPERATIONS FOR MITEL INC THE COMPANY'S US SUBSIDIARY 9303240150 930324 STUDY CALLS SCHOOLS LAX ON SEXUAL HARASSMENT BOSTON SEXUAL HARASSMENT IN SCHOOLS LEADS TO DISCIPLINARY ACTION IN ONLY A FRACTION OF CASES ACCORDING TO A NEW STUDY THE STUDY WHICH PORTRAYS A GENERALLY LAX ATTITUDE BY SCHOOLS TOWARD SEXUAL HAZING OF FEMALE STUDENTS INDICATED THAT ONLY ABOUT 17 OF HARASSERS ARE DISCIPLINED ALTHOUGH TEACHERS OR OTHER ADULTS ARE SOMETIMES PRESENT WHEN HARASSMENT TAKES PLACE OR TOLD OF IT AFTERWARD THE MOST COMMON REASON THAT DISCIPLINARY ACTION WASN'T TAKEN APPEARED TO BE ADULT IGNORANCE OF THE INCIDENT THE STUDY BY THE CENTER FOR RESEARCH ON WOMEN AT WELLESLEY COLLEGE CALLED FOR UNIVERSAL ADOPTION OF SEXUAL HARASSMENT POLICIES IN SCHOOLS THE RESEARCH CENTER ALSO CALLED SEXUAL HARASSMENT PERVASIVE IN SCHOOLS BUT PROVIDED NO STATISTICS ON THE FREQUENCY OF ITS OCCURRENCE THE STUDY WAS BASED ON 4200 RESPONSES TO A TEAROUT QUESTIONNAIRE IN THE SEPTEMBER 1992 ISSUE OF SEVENTEEN MAGAZINE ALL RESPONDENTS REPORTED THEY HAD SUFFERED HARASSMENT SEVENTEEN HAS A PAID CIRCULATION OF 19 MILLION MEANING 02 OF SUBSCRIBERS RETURNED A QUESTIONNAIRE ACCORDING TO A RANDOM SAMPLING OF ABOUT HALF OF THOSE WHO RESPONDED 39 OF GIRLS WHO ARE HARASSED FACE HARASSMENT DAILY ONE IN 10 RESPONDENTS SAID THEY WERE FORCED TO DO SOMETHING SEXUAL ABOUT 83 SAID THEY HAD BEEN TOUCHED GRABBED OR PINCHED IN SCHOOL 9303240149 930324 ECONOMY IRS WITHDRAWS PLAN TO RESTRICT R&D DEDUCTION NEW RULES LOOSEN STANDARD THAT WORK MUST MEET TO QUALIFY FOR CREDIT BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE MOVED TO RESCIND A 1989 PROPOSAL THAT WOULD HAVE LIMITED THE ABILITY OF COMPANIES TO TAKE TAX DEDUCTIONS FOR RESEARCH AND DEVELOPMENT EXPENSES A NEW SET OF GUIDELINES PROPOSED YESTERDAY SEEKS INSTEAD TO KEEP INTACT A 1954 DEFINITION OF WHAT TYPE OF R&D QUALIFIES FOR A DEDUCTION THAT STANDARD WHICH THE IRS IS SEEKING TO CLARIFY THROUGH THE NEW REGULATIONS SAYS BUSINESSES MAY WRITE OFF ALL EXPENDITURES WHICH REPRESENT RESEARCH AND DEVELOPMENT COSTS IN THE EXPERIMENTAL OR LABORATORY SENSE IT'S DEFINITELY A STEP IN THE RIGHT DIRECTION SAID MARK WEINBERGER AN AIDE TO SEN JOHN DANFORTH R MO WHO HAD VOICED CONCERN ABOUT THE EARLIER PROPOSAL THAT PLAN WHICH WAS OFFERED BY THE IRS IN 1989 WOULD HAVE ESTABLISHED THAT ONCE A COMPANY MET ITS BASIC DESIGN SPECIFICATIONS ADDITIONAL RESEARCH EXPENSES COULDN'T BE DEDUCTED UNLESS THEY WERE INCURRED TO CURE A SIGNIFICANT DEFECT OR TO TAKE SOME OTHER MAJOR LEAP FORWARD THE 1989 REGULATIONS WERE GREETED WITH CONSIDERABLE CRITICISM FROM HIGHTECH INDUSTRIES AND WERE NEVER ACTUALLY IMPLEMENTED MANY RESEARCH ACTIVITIES ARE EVOLUTIONARY RATHER THAN REVOLUTIONARY SAID JIM SHANAHAN A PARTNER WITH PRICE WATERHOUSE WHO REPRESENTED SOFTWARE MANUFACTURERS IN THE FIGHT FOUR YEARS AGO WE FELT THE OLD APPROACH WAS TOO BLACKANDWHITE THE NEWLY PROPOSED RULES WHICH ARE SPELLED OUT IN ONLY 15 PAGES STATE THAT R&D COSTS WILL BE CONSIDERED IN THE EXPERIMENTAL OR LABORATORY SENSE AS LONG AS THEY ARE FOR ACTIVITIES INTENDED TO DISCOVER INFORMATION THAT WOULD ELIMINATE UNCERTAINTY CONCERNING THE DEVELOPMENT OR IMPROVEMENT OF A PRODUCT UNCERTAINTY EXISTS THE RULES EXPLAIN WHENEVER A COMPANY CAN'T OTHERWISE REASONABLY OBTAIN INFORMATION THAT SHOWS HOW TO MAKE THE ADVANCE MR WEINBERGER THE DANFORTH AIDE EXPRESSED SOME FEAR THAT THE LANGUAGE ABOUT UNCERTAINTY COULD GENERATE CONFUSION IN THE FIELD THAT PORTION OF THE REGS IS ONLY AS GOOD AS THE IRS AGENTS APPLYING IT HE SAID HE NOTED THAT THERE HAS BEEN TURMOIL OVER THE R&D DEDUCTION EVER SINCE 1986 WHEN CONGRESS CRACKED DOWN ON THE NUMBER OF COMPANIES CLAIMING RESEARCH TAX CREDITS THE R&D DEDUCTION RULES ARE THE FIRST SIGNIFICANT TAX REGULATORY PROPOSAL TO MOVE UNDER THE CLINTON ADMINISTRATION A PUBLIC HEARING ON THE PLAN HAS BEEN SET FOR JUNE 9303240147 930324 INTERNATIONAL TOKYO CONTRACTORS' OFFICES RAIDED IN PAYOFFS PROBE TOKYO AP JAPANESE PROSECUTORS RAIDED THE OFFICES OF MAJOR CONSTRUCTION COMPANIES SUSPECTED OF MAKING HUGE PAYOFFS TO SHIN KANEMARU A FORMER POLITICAL KINGMAKER NOW FACING CHARGES OF MASSIVE TAX EVASION THE COMPANIES INCLUDED OBAYASHI CORP OKUMURA CORP AND 16 OTHER MAJOR CONSTRUCTION COMPANIES MOSTLY BASED IN TOKYO SEVERAL OF THE COMPANIES CONTACTED BY TELEPHONE DECLINED TO COMMENT ON THE INVESTIGATIONS JAPANESE MEDIA REPORTS SAY MR KANEMARU ALLEGEDLY COLLECTED MORE THAN 1 BILLION YEN 87 MILLION A YEAR IN ILLEGAL DONATIONS FROM THE CONTRACTORS INCLUDING KICKBACKS FOR PROJECTS UNDER JAPANESE LAW DONATIONS TO LAWMAKERS ARE LIMITED TO 15 MILLION YEN 13000 PER DONOR A YEAR THE 78YEAROLD MR KANEMARU WHO PLAYED A MAJOR PART IN PICKING FOUR PRIME MINISTERS WAS ARRESTED MARCH 6 AND LATER CHARGED WITH EVADING TAXES ON 200 MILLION YEN IN UNREPORTED INCOME LOCAL REPORTS ESTIMATE THAT HE HAS CONCEALED AS MUCH AS FIVE BILLION YEN FROM TAX AUTHORITIES HE IS BEING HELD WITHOUT BAIL AT THE TOKYO DETENTION CENTER LAST WEEK PROSECUTORS RAIDED THE OFFICES OF SMALLER CONSTRUCTION FIRMS IN YAMANASHI PREFECTURE MR KANEMARU'S HOME DISTRICT 9303240146 930324 WHO'S NEWS FRUIT OF THE LOOM INC FRUIT OF THE LOOM INC CHICAGO RON ZABEL WAS NAMED TO THE NEWLY CREATED POST OF PRESIDENTCONSUMER PACKAGED PRODUCTS AT THIS UNDERWEAR MAKER MR ZABEL 49 HAD BEEN PRESIDENT OF SARA LEE CORP'S L'EGGS PRODUCTS INC WOMEN'S HOSIERY UNIT SARA LEE SAID A SUCCESSOR TO MR ZABEL HASN'T BEEN NAMED 9303240145 930324 UNION ELECTION AT GM'S SATURN TO TEST LABOR'S PARTNERSHIP WITH MANAGEMENT BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT A LOCAL UNION ELECTION AT GENERAL MOTORS CORP'S SATURN SUBSIDIARY IS TURNING INTO A REFERENDUM ON THE OPERATION'S MUCHTOUTED COOPERATIVE LABOR RELATIONS SATURN IS STRUGGLING TO BREAK EVEN THIS YEAR ALTHOUGH IT IS ENJOYING STRONG DEMAND FOR ITS CARS AND THE PRESSURE TO CUT COSTS AND BOOST PRODUCTIVITY IS FUELING A SPIRITED EFFORT TO UNSEAT MICHAEL BENNETT THE LOCAL UNION PRESIDENT WHO HAS CHAMPIONED AN UNUSUALLY CLOSE RELATIONSHIP WITH SATURN MANAGEMENT MR BENNETT HAS STUCK BY THE SATURN PARTNERSHIP WHICH MANY LABOR EXPERTS CALL A MODEL FOR US INDUSTRY DESPITE MOUNTING CRITICISM FROM SATURN WORKERS IN SPRING HILL TENN AND SENIOR UAW LEADERS IN DETROIT TOMORROW MR BENNETT WILL FACE THREE DIFFERENT OPPOSITION SLATES IN HIS CAMPAIGN TO REMAIN AS PRESIDENT OF UNITED AUTO WORKERS LOCAL 1853 IF HE LOSES MR BENNETT SAYS SATURN'S WORKERS WILL RETURN TO A MORE TRADITIONAL ADVERSARIAL RELATIONSHIP WITH MANAGEMENT I DON'T BELIEVE AMERICA CAN COMPETE WITH AN ADVERSARIAL SYSTEM IN A GLOBAL ECONOMY SAID MR BENNETT WHO FREQUENTLY ACCOMPANIES SATURN PRESIDENT RICHARD G LEFAUVE IN PUBLIC APPEARANCES YOU DON'T HAVE THE LUXURY OF FIGHTING ALL THE TIME WHILE PEOPLE STEAL YOUR JOBS AWAY OVERSEAS A SATURN SPOKESMAN SAID THE COMPANY WAS STAYING OUT OF THE ELECTION WE'RE IN STRONG SUPPORT OF THE PARTNERSHIP BETWEEN SATURN AND THE UAW BUT AS FOR THE ELECTION THAT'S A LOCAL UAW ISSUE HE SAID CURRENTLY MR BENNETT AND OTHER SATURN UNION MEMBERS SIT ON ALL OF THE SUBSIDIARY'S MAJOR MANAGEMENT COUNCILS UNION MEMBERS WORK IN TEAMS AND MANAGEMENT AND UNION OFFICIALS JOINTLY PICK SHOP FLOOR REPRESENTATIVES FOR THOSE TEAMS MR BENNETT PREDICTED HE WILL WIN REELECTION BUT SAID HE IS PREPARING FOR A RUNOFF IN CASE HE RECEIVES LESS THAN 50 OF THE VOTES IN THE 24HOUR ELECTION THAT BEGINS TOMORROW MORNING A RUNOFF ELECTION BETWEEN THE TOP TWO CANDIDATES IF NECESSARY WILL BE HELD NEXT WEEK THE OPPOSITION TO MR BENNETT AND THE OTHER INCUMBENT CANDIDATES IS BEING LED BY WORKERS WHO HAVE TRANSFERRED TO THE SATURN PLANT FROM OTHER LOCATIONS THE STRONGEST CHALLENGE IS BEING MOUNTED BY A GROUP OF WORKERS CALLING THEMSELVES MEMBERS FOR A DEMOCRATIC UNION MANY OF WHOM FORMERLY WORKED AT GM'S ASSEMBLY PLANT IN NORWOOD OHIO BEFORE IT WAS CLOSED MR BENNETT SAID THE OPPOSITION HAS CRITICIZED MR BENNETT FOR BEING DISTANT FROM WORKERS MR BENNETT SAID IT WAS TRUE THAT HE SPENDS LESS TIME ON THE SHOP FLOOR THAN UNION LEADERS ELSEWHERE BUT SAID THAT IS BECAUSE HE IS RESPONSIBLE FOR NEGOTIATING ITEMS SUCH AS PENSIONS AND HEALTHCARE BENEFITS THAT THE INTERNATIONAL UNION HANDLES AT OTHER PLANTS PART OF MY PROBLEM IS VISIBILITY HE SAID IN JANUARY MR BENNETT WON A VICTORY WHEN WORKERS VOTED 71 TO 29 TO RETAIN SATURN'S LABOR CONTRACT THE WORKERS REJECTED A REFERENDUM THAT WOULD HAVE ALLOWED SATURN'S VERSION OF SUPERVISORS CALLED WORK UNIT MODULE ADVISERS TO BE DIRECTLY ELECTED BY WORKERS INSTEAD THEY DECIDED TO RETAIN THE CURRENT CONTRACT WHERE THE PLANT'S 180 ADVISERS ARE PICKED JOINTLY BY SATURN MANAGEMENT AND UNION LEADERS STILL THE 3321 TO 1366 VOTE SHOWED THERE WAS CONSIDERABLE DISSENT IN A PLANT THAT HAS PRIDED ITSELF ON TEAMWORK AND CONSENSUS BUILDING AND LAST MONTH SATURN WORKERS DEALT MR BENNETT A SETBACK WHEN THEY NARROWLY TURNED DOWN A PROPOSAL BY THE LOCAL'S EXECUTIVE BOARD TO BUILD A 35 MILLION UNION CENTER THAT INCLUDED EXTENSIVE MEETING ROOMS AND A GYM HARLEY SHAIKEN A LABOR EXPERT AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO SAYS SATURN IS GOING THROUGH GROWING PAINS THE CURRENT UNION ELECTION IS IMPORTANT HE ADDS BUT THE REAL ISSUE ISN'T SO MUCH THE OUTCOME OF THE ELECTION BUT WHAT HAPPENS IN ITS AFTERMATH HOW NEW WORKERS ARE INTEGRATED INTO SATURN AND THE WAY SATURN RESPONDS TO PRODUCTION PRESSURES 9303240144 930324 US JAPAN VOW EFFORTS ON SEMICONDUCTOR SALES WASHINGTON THE US AND JAPAN ENDED THREE DAYS OF TALKS ON SEMICONDUCTORS VOWING TO TAKE MEASURES THAT COULD INCREASE THE FOREIGN SHARE OF THE COMPUTER CHIP MARKET IN JAPAN BUT THE TWO SIDES DISAGREED ON WHETHER TO SET SPECIFIC TARGETS FOR FOREIGN SEMICONDUCTOR SALES THE US HAS BEEN PUSHING JAPAN TO COMMIT ITSELF TO CARVING OUT AT LEAST 20 OF THE JAPANESE MARKET FOR FOREIGN COMPANIES IN 1993 WHILE JAPAN REFUSES TO ACCEPT A NUMERICAL GOAL US CHIP SALES MAKE UP ABOUT 85 OF FOREIGN SALES IN JAPAN LAST WEEK THE TWO SIDES ANNOUNCED THAT FOREIGN SALES OF SEMICONDUCTORS ACCOUNTED FOR 202 OF THE 211 BILLION JAPANESE MARKET IN THE FOURTH QUARTER OF 1992 A SEMICONDUCTOR ACCORD BETWEEN THE TWO NATIONS HAD SET A 20 MARKETSHARE TARGET FOR THE END OF LAST YEAR AND THE FOURTHQUARTER SHARE WAS THE FIRST TIME FOREIGN SALES HAD EVER COME CLOSE TO THAT LEVEL REPRESENTATIVES OF THE US AND JAPANESE SEMICONDUCTOR INDUSTRIES SAID YESTERDAY THEY AGREED TO INCREASE EFFORTS TO INCLUDE US CHIPS IN THE BASIC DESIGN OF NEW JAPANESE ELECTRONICS PRODUCTS AND THEY SAID THEY WOULD WORK TOGETHER TO DEVELOP PRODUCTS FOR NEW MARKETS SUCH AS ADVANCED TELECOMMUNICATIONS AND MULTIMEDIA COMPUTERS WHICH DISPLAY SOUND VIDEO AND TEXT PAST ACCORDS HAVE CALLED FOR SIMILAR EFFORTS 9303240143 930324 WHO'S NEWS PROVIDENT LIFE & ACCIDENT INSURANCE CO OF AMERICA PROVIDENT LIFE & ACCIDENT INSURANCE CO OF AMERICA CHATTANOOGA TENN WINSTON W WALKER CHIEF EXECUTIVE AND PRESIDENT OF THIS HEALTH AND ACCIDENT INSURANCE CONCERN PLANS TO RESIGN OCT 1 MR WALKER 49 YEARS OLD SAID HIS DECISION TO RESIGN IS A PURELY PERSONAL FAMILY MOVE HE SAID HE IS RECOMMENDING THAT THE COMPANY'S BOARD SELECT A SUCCESSOR FROM THE CURRENT MANAGEMENT TEAM MR WALKER SAID STRONG CONTENDERS INCLUDE THOMAS C HARDY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER SENIOR VICE PRESIDENTS JOHN H BARNES AND T RAMON PERDUE AND VICE PRESIDENT THOMAS B HEYS JR A COMPANY SPOKESMAN SAID THE BOARD WILL MEET NEXT WEEK TO BEGIN CONSIDERING A SUCCESSOR MR WALKER SAID HE INTENDS TO HANG ON FOR THE FORSEEABLE FUTURE TO THE 80000 PROVIDENT SHARES HE HOLDS AND ON WHICH HE HAS OPTIONS THE COMPANY IS IN FINE SHAPE AT THE MOMENT HE SAID 9303240142 930324 MARKETING MCDONALD'S TRIES BIGGER BURGER TO BEEF UP DINNER MENU BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL IT'S BACK TO THE BEEF AT MCDONALD'S CORP THE FASTFOOD CHAIN FRUSTRATED IN ITS ATTEMPTS TO DEVELOP A DINNER MENU FEATURING PIZZA SKINLESS CHICKEN AND PASTA HAS PUT THOSE POSSIBILITIES ASIDE TO GAUGE CONSUMER REACTION TO ANOTHER POTENTIAL EVENING ENTREE A HAMBURGER BUT THIS ONE IS HEFTIER THAN MCDONALD'S NORMALLY SERVES IT WEIGHS IN AT ONETHIRD OF A POUND OR 53 OUNCES BEFORE FRYING BY COMPARISON ITS QUARTER POUNDER HAS FOUR OUNCES THE MCLEAN DELUXE 375 OUNCES THE TWOPATTY BIG MAC 32 OUNCES AND THE REGULAR HAMBURGER 16 OUNCES BURGER KING'S BIGGEST HAMBURGER THE WHOPPER CONTAINS FOUR OUNCES OF BEEF WHILE HARDEE'S FRISCO BURGER ITS LARGEST HAS 42 OUNCES BEFORE COOKING THE DINNER BURGER CALLED THE MICKEY D A SLANG TERM FOR THE CHAIN HAS BEEN IN TESTS AT SEVERAL DOZEN STORES SINCE EARLIER THIS MONTH IT COMES WITH LETTUCE TOMATO SPICY KETCHUP AND CHEDDAR CHEESE ON A CRUNCHY ROLL ALSO SOMETHING NEW FOR THE CHAIN AND HAS A RECOMMENDED PRICE OF 229 STORES ALSO ARE OFFERING THE MICKEY D AS PART OF AN EXTRAVALUE MEAL WITH LARGE FRIES AND A MEDIUM SOFT DRINK THE RECOMMENDED PRICE IS 359 MCDONALD'S ONCE SAW PIZZA AS THE CENTERPIECE FOR DINNER BUT AFTER MIXED RESULTS IN EXTENDED TESTS THE COMPANY IS TURNING PIZZA INTO A SPECIALTY ITEM FOR SUCH ONTHEGO LOCATIONS AS AIRPORTS TRAIN STATIONS AND SHOPPING MALLS PIZZA IS LACKLUSTER RIGHT NOW EDWARD H RENSI MCDONALD'S USA PRESIDENT TOLD SECURITIES ANALYSTS RECENTLY WE'RE GOING TO HAVE TO CHANGE THE OVERALL AMBIENCE OF THE RESTAURANT IN THE EVENINGS TO GET PIZZA TO GROW THE BRIEFING WAS CLOSED TO THE MEDIA BUT THE WALL STREET JOURNAL OBTAINED A TRANSCRIPT OF THE SESSION IN THE PAST MCDONALD'S HAS TALKED ABOUT DIMMING LIGHTS PIPING IN SOOTHING MUSIC AND PERHAPS EVEN REARRANGING THE FURNITURE TO CREATE MORE OF A DINING ENVIRONMENT IN ITS STORES THAT COULD BE TRICKY FOR A COMPANY WHOSE RESTAURANTS SYMBOLIZE THE UBIQUITOUS CLEAN WELLLIGHTED PLACE THOUGH PIZZA HAS BEEN A DILEMMA IN THE US FOR MCDONALD'S THE COMPANY SELLS IT SUCCESSFULLY IN CANADA WHERE THERE ARE FEW NATIONAL PIZZA CHAINS IT ALSO IS TESTING PIZZA ON ITS MENUS IN RESTAURANTS IN ENGLAND AND FRANCE MR RENSI SAID THE MICKEY D BIG BURGER IS AMONG SEVERAL ITEMS THE COMPANY IS CONSIDERING THAT MIGHT SUPPORT DINNER ATTRACTING PATRONS TO ITS RESTAURANTS AFTER 4 PM HAS BECOME A STRUGGLE FOR MCDONALD'S AS IT HAS FOR OTHER BURGERBASED CHAINS MCDONALD'S LED THE INDUSTRY IN CREATING THE FASTFOOD BREAKFAST SEVERAL YEARS AGO BUT SO FAR HAS BEEN CONFOUNDED ABOUT WHAT TO SERVE AT THE END OF DAY BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC LAST YEAR ROLLED OUT FOUR DINNERTIME MEALS WITH ENTREES OF FRIED SHRIMP CHICKEN FILLET STEAK SANDWICH AND WHOPPER IT RECENTLY REPLACED THE STEAK SANDWICH WITH A MEATLOAF SANDWICH THOSE INABASKET ITEMS COME WITH FRENCH FRIES OR BAKED POTATO AND SALAD OR COLE SLAW AND ARE BROUGHT TO PATRONS' TABLES BY THE RESTAURANT'S STAFF AFTER 5 PM WE'RE VERY SATISFIED A SPOKESWOMAN SAYS OF BURGER KING'S DINNER EXPERIENCE IT HAS INCREASED DINNERTIME TRAFFIC AND NOW IT'S TWEAK AS YOU GO SHE ADDS YOU KNOW WHAT DOES GREAT THE WHOPPER WITH SALAD AND FRIES THAT LENDS SUPPORT TO MCDONALD'S BACKTOBEEF APPROACH THE MICKEY D IF SUCCESSFUL PRESUMABLY WOULD BE AVAILABLE THROUGHOUT THE DAY AS ARE OTHER SANDWICHES BUT WOULD BE FEATURED DURING DINNER HOURS MR RENSI SAID MCDONALD'S ALSO IS WORKING ON ANOTHER GRILLED CHICKEN SANDWICH TO COMPETE WITH RIVAL BURGER KING'S SUCCESSFUL BK BROILER EFFORTS TO FIND A POSSIBLE REPLACEMENT FOR ITS CURRENT BREADEDANDFRIED MCCHICKEN SANDWICH HAVE GONE ON FOR YEARS ONE VERSION WAS SCRAPPED SEVERAL MONTHS AGO AFTER TEST MARKETING IN HIS REMARKS TO ANALYSTS MR RENSI CALLED THE LATEST VERSION A VERY EXCITINGLOOKING PRODUCT HE ALSO REITERATED THE CHAIN'S ASSERTION THAT IT HAS NO INTENTION OF TESTING A VEGETABLEBASED BURGER IN THE US SOME OF ITS RESTAURANTS IN THE NETHERLANDS RECENTLY INTRODUCED A MEATLESS SANDWICH BUT MR RENSI TOLD THE ANALYSTS OUR MENU ALREADY HAS A NUMBER OF NONMEAT OPTIONS SUCH AS OUR SALADS WE HAVE FOOD THAT APPEALS TO VEGETARIANS 9303240141 930324 MARKETING & MEDIA FCC TO VOTE SOON ON GIVING NETWORKS ROLE IN SYNDICATION BY DENNIS KNEALE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE ACTING CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION SAID THE THREE MAJOR BROADCAST NETWORKS ARE CLOSE TO BEING FREED FROM TWODECADEOLD FCC RULES THAT BLOCK THEM FROM THE MULTIBILLIONDOLLAR RERUN BUSINESS FCC CHAIRMAN JAMES H QUELLO IN A SPEECH AT A MAJOR MEDIA INDUSTRY CONFERENCE SAID THAT THE FCC IS TO VOTE APRIL 1 ON LIFTING MANY OF THE RERUN RESTRICTIONS WE'RE GETTING CLOSE TO THE DAY WHEN THE NETWORKS WILL SAY FREE AT LAST FREE AT LAST' HE SAID HIS COMMENTS MARKED ONE OF THE STRONGEST INDICATIONS YET THAT THE NETWORKS MAY GAIN ACCESS TO THE 4 BILLIONAYEAR SYNDICATION BUSINESS NOW DOMINATED BY THE MAJOR HOLLYWOOD STUDIOS AFTER HIS SPEECH AT THE VARIETY/WERTHEIM SCHRODER MEDIA CONFERENCE MR QUELLO SAID THE FCC HOPES FOR A NEW COMPROMISE THAT WOULD LARGELY LIFT MOST RESTRICTIONS BUT IT STILL WOULDN'T ENTIRELY FREE CBS ABC AND NBC FROM THE SOCALLED FINANCIAL INTEREST AND SYNDICATION RULES HE ADDED INSTEAD THE FCC MAY GIVE THE NETWORKS RIGHTS TO NEGOTIATE FOR PARTIAL OWNERSHIP IN THE HOLLYWOODPRODUCED PROGRAMS THEY AIR AN OPTION BANNED SINCE THE FCC IMPOSED THE RULES IN 1970 BUT THE FCC MAY STOP SHORT OF LETTING THE NETWORKS DIRECTLY SELL OR SYNDICATE RERUNS AND OTHER SHOWS TO LOCAL STATIONS PERHAPS FOR THE NEXT THREE YEARS THAT WOULD LEAVE THE BUSINESS IN THE CONTROL OF MAJOR STUDIOS AND SUCH PLAYERS AS KING WORLD PRODUCTIONS INC AND VIACOM INC THE FCC HAD VOTED IN JUNE 1991 TO EASE SOME ASPECTS OF THE SO CALLED FINSYN RULES BUT A FEDERAL APPEALS COURT LAST NOVEMBER HARSHLY CRITICIZED EVEN THE REVISED RULES AS UNREASONABLE AND CAPRICIOUS ORDERING THE FCC TO HAVE ANOTHER GO AT THE ISSUE THE FIGHT OVER THE FCC RULES HAS BITTERLY DIVIDED THE NETWORKS AND HOLLYWOOD FOR YEARS A PANEL DISCUSSION YESTERDAY SERVED UP MORE OF THE SAME JACK VALENTI PRESIDENT OF HOLLYWOOD'S MOTION PICTURE ASSOCIATION OF AMERICA SAID THE NETWORKS HAVE UNMITIGATED POWER OVER PROGRAMMING NO MATTER HOW GOOD A SHOW IS SOME FUZZYCHEEKED NETWORK EXECUTIVE CONTROLS ITS FATE BUT CBS INC BROADCAST GROUP PRESIDENT HOWARD STRINGER COUNTERED THAT WHILE THE NETWORKS ARE WIDELY SEEN AS BARELY PROFITABLE DINOSAURS MR VALENTI STILL BELIEVES WE'RE THE GREAT WHITE SHARK TO WHICH MR VALENTI SNIPED HERE'S YOUR TIN CUP HOWARD YOU CAN TAKE IT DOWN FIFTH AVENUE 9303240140 930324 WHO'S NEWS HADSON ENERGY BOARD IS ALTERED TO INCREASE INDEPENDENT DIRECTORS OKLAHOMA CITY HADSON ENERGY RESOURCES CORP RESTRUCTURED ITS BOARD TO INCREASE THE REPRESENTATION OF INDEPENDENT DIRECTORS THREE COMPANY DIRECTORS RESIGNED BOARD SIZE WAS REDUCED TO EIGHT MEMBERS FROM 10 HADSON NAMED JL JACKSON FORMERLY PRESIDENT OF DIAMOND SHARMROCK CORP TO THE BOARD DONALD T DUKE AND DAVID N HAYES WHO RESIGNED AS DIRECTORS WILL REMAIN SENIOR VICE PRESIDENTS WITH HADSON TK HENDRICK 70 YEARS OLD WHO RESIGNED AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER IN SEPTEMBER 1992 RETIRED FROM THE BOARD SEPARATELY THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID IT ENTERED A DRILLING ARRANGEMENT IN INDONESIA WITH THE STATE OIL COMPANY THE AGREEMENT GIVES HADSON THE OPERATOR A 35 INTEREST IN A PRODUCTION SHARING CONTRACT CONCERNING CERTAIN FIELDS LOCATED ONSHORE IN CENTRAL SUMATRA HADSON SAID IT WILL DRILL THREE EXPLORATORY WELLS BEGINNING IN JULY 9303240139 930324 YIELDS ON CDS DECLINE IN WEEK RATE FALLS TO 265 ON SIXMONTH NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE MOSTLY DOWN IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS SLID TO 265 FROM 267 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCHED DOWN TO 485 FROM 487 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS EASED TO 310 FROM 311 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLIPPED TO 515 FROM 523 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE EDGED DOWN TO 273 FROM 278 ON FIVEYEAR JUMBOS THE AVERAGE CREPT DOWN TO 494 FROM 502 ACCORDING TO BANXQUOTE 9303240137 930324 CHASE IS SOLICITING BIDS ON 300 MILLION IN BAD PROPERTY LOANS TO TEST MARKET BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL CHASE MANHATTAN CORP IS SOLICITING BIDS ON A 300 MILLION PACKAGE OF BAD REAL ESTATE LOANS TO TEST THE MARKET BEFORE DECIDING WHETHER TO SELL THE REST OF ITS 32 BILLION NONPERFORMING COMMERCIAL REAL ESTATE PORTFOLIO IF CHASE BEGINS SELLING REAL ESTATE ASSETS IT WOULD MARK A SHIFT FROM A HOLDANDMANAGE STRATEGY TO ONE ADOPTED BY A GROWING NUMBER OF BANKS THAT ARE SELLING BAD REAL ESTATE LOANS AT ABOUT 50 OF ORIGINAL FACE VALUE CHASE'S 32 BILLION PORTFOLIO OF DISTRESSED REAL ESTATE IS LARGER THAN ANY BANK PORTFOLIO YET SOLD IN JANUARY BANKAMERICA CORP SOLD ASSETS ORIGINALLY VALUED AT 2 BILLION FOR 1 BILLION AND IN FEBRUARY FIRST CHICAGO CORP SOLD ASSETS ORIGINALLY VALUED AT 1 BILLION FOR 500 MILLION BANKS HAVE CHOSEN TO SELL AT DEPRESSED PRICES AND GIVE UP POTENTIAL GAINS WHEN THE MARKET RECOVERS IN ORDER TO REINVEST THE MONEY MORE PROFITABLY IN ADDITION THE STOCK MARKET HAS REWARDED BANKS FOR UNLOADING BAD REAL ESTATE WHICH FREES THEM FROM THE POSSIBILITY OF HAVING TO TAKE FURTHER LOANLOSS RESERVES DOWN THE ROAD THE PACKAGE ON WHICH CHASE IS SOLICITING BIDS CONSISTS OF JUST 10 LOANS MOST OF THEM ON OFFICE PROPERTIES ACCORDING TO TWO PEOPLE FAMILIAR WITH THE OFFERING I THINK THEY'RE JUST TRYING TO SEE WHAT THE MARKET THINKS OF THE ASSETS AND WHAT IT MIGHT BE WILLING TO PAY SAID ONE OF THE PEOPLE CHASE OFFICIALS DECLINED TO COMMENT ON WHETHER THEY ARE APPROACHING POTENTIAL BUYERS ABOUT THE 300 MILLION POOL BUT ACKNOWLEDGE THAT THE IMPROVING MARKET FOR DISTRESSED REAL ESTATE COULD MAKE A SELLING STRATEGY MORE ATTRACTIVE WE HAVE ALWAYS BEEN INTERESTED IN CONSIDERING THE MARKET OPTIONS AVAILABLE TO US SAID ROBERT STRONG HEAD OF COMMERCIAL REAL ESTATE AT CHASE IN THE PAST THE PRICE DIDN'T MAKE SENSE FOR US WHAT HAS CHANGED IS THAT THERE'S MORE LIQUIDITY IN THE MARKET THERE'S MORE ABILITY TO PRICE ON SOMETHING OTHER THAN A WORSTCASE SCENARIO A SERIES OF INCREASINGLY LARGER TRANSACTIONS IN THE PAST YEAR HAVE ESTABLISHED A MARKET FOR SUCH ASSETS AT ABOUT ONEHALF OF ORIGINAL VALUE THE FIELD OF POTENTIAL BUYERS ALSO HAS GROWN FROM JUST A HANDFUL OF BOTTOM FISHERS TO SEVERAL DOZEN INSTITUTIONAL BUYERS THOMAS HANLEY A BANKING ANALYST AT FIRST BOSTON CORP ESTIMATES THAT CHASE CURRENTLY CARRIES ITS 2 BILLION IN NONPERFORMING COMMERCIAL REAL ESTATE LOANS AT 78 CENTS ON THE DOLLAR AND THE 12 BILLION IN REAL ESTATE IT HAS SEIZED THROUGH FORECLOSURE AT 54 CENTS ON THE DOLLAR IF THE BANK WERE TO WRITE DOWN BOTH CATEGORIES TO 50 OF ORIGINAL VALUE IT WOULD NEED TO TAKE AN ADDITIONAL WRITEDOWN OF 822 MILLION HE SAID 9303240136 930324 HEALTH HUNTINGTON'S DISEASE GENE IS FOUND AT LAST BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON THE RAPIDLY ADVANCING HUMAN GENOME PROJECT NOW IDENTIFYINGGENES AT THE RATE OF ALMOST ONE A DAY SCORED A LONGSOUGHT VICTORY A GROUP OF SCIENTISTS FROM THE US AND BRITAIN SAID THEY FOUND THE DEFECTIVE GENE THAT UNDERLIES HUNTINGTON'S DISEASE A DEADLY DISORDER THAT ERUPTS IN MIDDLE AGE AND GRADUALLY ROBS PEOPLE OF MENTAL AND PHYSICAL FUNCTIONING IT WAS THE BELIEF A DECADE AGO THAT SCIENTISTS WERE ON THE VERGE OF FINDING THE HUNTINGTON'S GENE THAT WAS THE IMPETUS FOR LAUNCHING THE HUMAN GENOME PROJECT TO IDENTIFY ALL HUMAN GENES WHILE THE FEDERALLY FUNDED GENOME PROJECT'S PROGRESS IS EXCEEDING ALL EXPECTATIONS THE HUNTINGTON'S GENE REMAINED ELUSIVE UNTIL NOW AS WITH OTHER GENE DISCOVERIES PINPOINTING THE HUNTINGTON'S GENE WILL LEAD TO A QUICK AND SIMPLE TEST TO TELL PEOPLE IF THEY HAVE INHERITED THE GENE AND ARE DESTINED TO DEVELOP THE FATAL DISORDER IN MIDLIFE WHETHER TO TAKE THE TEST HOWEVER POSES A DILEMMA FOR FAMILIES HAUNTED BY THE GENE FOR THOSE WHO FIND THEY DIDN'T INHERIT THE GENE THE TEST WILL PROVIDE IMMEASURABLE RELIEF BUT FOR THOSE WHO DISCOVER THEY LOST THE ROLL OF THE GENETIC DICE THE TEST WILL CAUSE IMMEASURABLE DISTRESS BECAUSE THERE'S NO TREATMENT FOR THE DISORDER SCIENTISTS BELIEVE THAT UNMASKING THE GENE HOWEVER WILL HELP EXPLAIN HOW IT DAMAGES THE BODY AND LEAD ULTIMATELY TO MEANS OF PREVENTING THE GENE'S FATAL EFFECTS OR OF REPAIRING THE DAMAGE I CAN'T HELP BUT BELIEVE THAT SOME SORT OF TREATMENT WILL BE DEVISED NOW THAT THE GENETIC DEFECT IS KNOWN FOR HUNTINGTON'S DISEASE SAID MEDICAL GENETICIST VICTOR MCKUSICK OF JOHNS HOPKINS UNIVERSITY MEDICAL SCHOOL IN BALTIMORE ONE OF THE GENOME PROJECT PIONEERS THE DISCOVERY WAS HAILED BY SCIENTISTS HERE AS A LANDMARK HUNTINGTON'S DISEASE BEST KNOWN FOR CRIPPLING AND THEN KILLING FOLK SINGER WOODY GUTHRIE AFFECTS ABOUT 30000 AMERICANS ANOTHER 150000 PEOPLE HAVE HAD A PARENT DEVELOP THE DISEASE AND THUS ARE AWARE THAT THEY HAVE A 50 CHANCE OF HAVING INHERITED THE FATAL GENE THOUGH THEY CURRENTLY HAVEN'T ANY SYMPTOMS OF HUNTINGTON'S DISEASE IT'S A GREAT RELIEF SOME OF US WERE BEGINNING TO THINK WE MIGHT NEVER FIND IT SAID JAMES GUSELLA HEAD OF THE RESEARCH TEAM AT MASSACHUSETTS GENERAL HOSPITAL HERE THAT FOUND THE GENE AFTER A DECADE OF SEARCHING THE TEAM CONSISTED OF SCIENTISTS FROM SIX DIFFERENT LABORATORIES THE PROBLEM OF ISOLATING THE GENE WAS MUCH TOUGHER THAN ANY OF US EVER CONSIDERED IN THE BEGINNING SAID DR GUSELLA THE TEAM WILL REPORT IN THE JOURNAL CELL LATER THIS WEEK THAT THE HUNTINGTON'S GENE WAS FOUND AT THE TIP OF CHROMOSOME NUMBER FOUR ONE OF THE 23 PAIRS OF HUMAN CHROMOSOMES IN EACH CELL THAT CONTAIN ALL HUMAN GENES THE FEAT IS A MILESTONE FOR THE GENOME PROJECT IN 1983 WHEN SOME BASIC BREAKTHROUGHS IN MOLECULAR GENETICS GAVE SCIENTISTS NEW TOOLS FOR LOCATING GENES THE LOCATION OF ONLY 606 GENES WAS KNOWN ACCORDING TO A RUNNING COUNT KEPT BY DR MCKUSICK TODAY WITH THE GENE SEARCH COORDINATED UNDER THE WORLDWIDE GENOME PROJECT AN ADDITIONAL 2000 GENES HAVE BEEN MAPPED TO PARTICULAR CHROMOSOMES AMONG THE NEWLY FOUND GENES ARE THE DEFECTIVE GENES FOR 122 DIFFERENT GENETIC DISEASES FOR WHICH SCIENTISTS HADN'T PREVIOUSLY KNOWN THE EXACT CAUSE THE PACE HAS BEEN ACCELERATING FOR THE LAST FEW YEARS AND IT'S NOW AT THE RATE OF ALMOST ONE GENE PER DAY DR MCKUSICK SAID THE 10YEAR HUNT FOR THE HUNTINGTON'S GENE IS WIDELY CONSIDERED ONE OF THE MOST STORIED IN RECENT ANNALS OF SCIENCE THE HUNT ITSELF HAS INVOLVED DOZENS OF LABS WORLDWIDE THE TRACKING DOWN OF HUNDREDS OF LARGE FAMILIES AFFLICTED BY THE GENE FROM AS FAR AWAY AS THE TROPICAL FORESTS OF VENEZUELA AND NEW GUINEA AND THE 25YEAR INVESTIGATING CRUSADE OF PSYCHOLOGIST NANCY WEXLER WHO DISCOVERED SHE WAS AT RISK OF HAVING INHERITED THE GENE AFTER HER MOTHER WAS DIAGNOSED WITH THE DISORDER IN 1968 DR WEXLER HELPED LAUNCH THE CURRENT ERA OF GENE MAPPING IN THE EARLY 1980S WHEN SHE LED SEVERAL EXPEDITIONS TO ISOLATED VILLAGES ON THE SHORELINE OF VENEZUELA'S LAKE MARACAIBO WHERE SHE IDENTIFIED AN UNUSUALLY LARGE FAMILY OF HUNTINGTON'S DISEASE SUFFERERS IN 1983 DR GUSELLA AND COLLEAGUES AT MASSACHUSETTS GENERAL HOSPITAL USED BLOOD SPECIMENS FROM THE VENEZUELA FAMILY AND A NEWLY DEVELOPED TECHNOLOGY TO NARROW THE LOCATION OF THE GENE DOWN TO A SPOT NEAR THE TIP OF CHROMOSOME 4 AT THE TIME THE SCIENTISTS EXPECTED TO QUICKLY IDENTIFY AND PLUCK OUT THE ACTUAL HUNTINGTON'S GENE THE GENE PRESUMABLY WAS A NORMAL GENE THAT HAD GONE BAD BUT THE NATURE OF THE DEFECT AND HOW IT COULD WREAK SUCH FATAL DAMAGE ON THE BRAIN WAS UNKNOWN THE SEARCH WAS EXHAUSTING AND FRUSTRATING LEADING RESEARCHERS REPEATEDLY DOWN BLIND ALLEYS FINALLY EARLY THIS FEBRUARY IN A PARTICULARLY FITTING FINISH RESEARCHERS FISHED OUT THE GENE ITSELF I WAS BOWLED OVER WHEN I HEARD THE NEWS SAID DR WEXLER WHOSE HEREDITARY DISEASE FOUNDATION IN SANTA MONICA CALIF WHICH SHE FORMED WITH HER FATHER MILTON HELPED FUND THE RESEARCH DR WEXLER WHO HASN'T DISCLOSED WHETHER SHE HAS THE GENE IS CREDITED WITH HELPING CREATE THE INTERNATIONAL COLLABORATION AND KEEPING THE DIFFERENT LABS FROM DROPPING INTO A RACE TO SEE WHO COULD FIND THE GENE FIRST IT WAS A VERY SPECIAL GENEROUS GROUP OF PEOPLE SHE SAID WHEN THE CHIPS WERE DOWN SOMEONE ALWAYS PICKED US UP THIS GENE WAS LIKE THE GREAT FISH THAT ALWAYS KEPT GETTING AWAY SAID FRANCIS COLLINS WHOSE LAB IN THE HOWARD HUGHES MEDICAL INSTITUTE AT UNIVERSITY OF MICHIGAN MEDICAL SCHOOL WAS PART OF THE COLLABORATION DR COLLINS WILL SHORTLY TAKE OVER AS HEAD OF THE US HUMAN GENOME PROJECT THE SCIENTISTS WERE STARTLED TO FIND THE EXACT NATURE OF THE GENE'S MUTATION LIKE ALL GENES THE HUNTINGTON'S GENE IS COMPOSED OF A STRING OF DNA MOLECULES THAT CONSTITUTE A BLUEPRINT THAT A CELL FOLLOWS IN ASSEMBLING A PROTEIN IN ITS NORMAL STATE THE HUNTINGTON'S GENE INCLUDES THREE MOLECULES DESIGNATED CAG THAT ARE REPEATED ABOUT 10 TO 20 TIMES IN THE DEFECTIVE GENE CAG IS REPEATED MANY MORE TIMES THE REPEAT EXPANDS THE SIZE OF GENE AS IF IT WERE AN ACCORDION DR GUSELLA SAID HE ADDED THAT THE REPEAT PRODUCES A MUTANT PROTEIN THAT SOMEHOW KILLS BRAIN CELLS ALTHOUGH EXACTLY HOW THAT OCCURS WE STILL DON'T KNOW ONCE THE MUTATION WAS IDENTIFIED SCIENTISTS WENT BACK AND SIFTED THROUGH THE GENETIC MATERIAL OF 75 DIFFERENT FAMILIES WITH THE DISEASE AND FOUND THAT IN EACH FAMILY THOSE WHO HAD HUNTINGTON'S DISEASE HAD THIS EXTRA GENETIC MATERIAL THE RESEARCHERS SAID THAT UNDERSTANDING HOW THE DEFECTIVE GENE SO DEVASTATES THE BRAIN ISN'T GOING TO BE AN EASY TASK THE NEXT STEP THE RESEARCHERS SAID WILL BE TO TRANSPLANT THE HUMAN GENE TO LABORATORY MICE TO CREATE THE FIRST ANIMAL MODEL IN WHICH TO STUDY THE DISEASE AND TEST OUT DRUGS THE COLLABORATION ALSO INCLUDED DAVID HOUSMAN AND HIS COLLEAGUES AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY JOHN WASMUTH OF THE UNIVERSITY OF CALIFORNIA AT IRVINE HANS LEHRACH OF THE IMPERIAL RESEARCH CANCER FUND IN LONDON AND PETER HARPER OF THE UK'S UNIVERSITY OF WALES 9303240135 930324 WHO'S NEWS DECORATOR INDUSTRIES INC DECORATOR INDUSTRIES INC PEMBROKE PINES FLA JOSEPH N ELLIS 64 YEARS OLD HAS BEEN SELECTED AS A DIRECTOR FOR THIS MAKER OF DRAPERIES AND BEDSPREADS MR ELLIS MOST RECENTLY SERVED AS CHIEF EXECUTIVE OFFICER CHAIRMAN AND PRESIDENT OF LASALLEDEITCH CO ELKHART IND A CLOSELY HELD DISTRIBUTOR OF CARPET AND FURNITURE FOR MANUFACTURED HOUSING AND RECREATIONAL VEHICLES HE SUCCEEDS CURTIS PEINHARDT 46 A DIVISIONAL MANUFACTURING PRESIDENT AT DECORATOR WHO RESIGNED FROM THE BOARD WILLIAM BASSETT COMPANY PRESIDENT SAID DECORATOR MADE THE SELECTION TO HAVE MORE OUTSIDE DIRECTORS ON ITS BOARD THE COMPANY ALSO ANNOUNCED A 2FOR1 STOCK SPLIT PAYABLE APRIL 22 TO STOCK OF RECORD APRIL 8 9303240134 930324 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN ELAINE G HARRIS 33 WAS NAMED SENIOR VICE PRESIDENTEQUITY PORTFOLIOS A NEW POST AT GE INVESTMENTS GE'S INVESTMENT AND PENSIONFUND MANAGEMENT ARM SHE HAD BEEN A SENIOR VICE PRESIDENT AND PORTFOLIO MANAGER AT SUNAMERICA ASSET MANAGEMENT NEW YORK 9303240132 930324 GREYHOUND LINES TRAFFIC FALLS DALLAS GREYHOUND LINES INC SAID ITS PASSENGER TRAFFIC FELL 82 IN FEBRUARY TO 3562 MILLION REVENUE PASSENGER MILES FROM 3879 MILLION IN FEBRUARY 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER TRAVELING ONE MILE THE BUS COMPANY ALSO REPORTED THAT IT FILLED 483 OF ITS AVAILABLE SEATS DOWN FROM THE 498 LOAD FACTOR REPORTED A YEAR EARLIER 9303240131 930324 KONICA TO MISS YEAREND TARGET TOKYO KONICA CORP THE JAPANESE CAMERA AND OPTICALS COMPANY SAID ITS PROFIT FOR THE YEAR ENDING MARCH 31 WON'T MEET ITS FORECAST OF 950 BILLION YEN 822 MILLION A SPOKESMAN REFERRED TO KONICA'S ECONOMIC SITUATION AS EXTREMELY SEVERE BUT WOULD NOT COMMENT ON HOW MUCH LOWER THE PROFIT WOULD BE THE FIRM'S PROFIT IN FISCAL YEAR 1991 WAS 1150 BILLION YEN HE CITED THE ECONOMIC SLOWDOWN AND THE HIGHER YEN EXCHANGE RATES AS CAUSES OF THE LOWERTHANEXPECTED SALES THE FISCAL 1992 FORECAST PUTS SALES AT 360 BILLION YEN DOWN 48 FROM THE YEAR EARLIER'S 378 BILLION YEN HOWEVER THE SPOKESMAN POINTED OUT THAT KONICA'S SLIGHTLY SHORTER ACCOUNTING PERIOD THIS YEAR WILL CUT OUT POSSIBLE PROFITS FROM A HIGH DOMESTIC SALES PERIOD IN LATE APRIL AS THE COMPANY IS CHANGING THE END OF ITS FISCAL YEAR TO MARCH 31 FROM APRIL 20 9303240130 930324 WHO'S NEWS ALLIEDLYONS PLC ALLIEDLYONS PLC LONDON HENRY F MCINERNEY 52 YEARS OLD WAS NAMED A DIRECTOR OF THIS FOOD AND BEVERAGE CONCERN'S J LYONS & CO FOOD OPERATING DIVISION MR MCINERNEY WHO CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TETLEY INC AN ALLIEDLYONS UNIT IN SHELTON CONN ALSO BECOMES J LYONS'S MANAGING DIRECTOR OF BEVERAGES IN THE WESTERN HEMISPHERE EFFECTIVE APRIL 1 9303240129 930324 INTERNATIONAL AIRBUS INDUSTRIE RECEIVES ORDER PARIS AIRBUS INDUSTRIE SAID IT RECEIVED AN ORDER FOR TWO A310 COMMERCIAL JETS FROM UZBEKISTAN AIRLINES THE TWO AIRCRAFT TO BE DELIVERED IN JUNE WILL BE THE FIRST WESTERNMADE AIRCRAFT FOR UZBEKISTAN'S NEW AIRLINE WHICH WAS FORMED AFTER THE FORMER SOVIET UNION'S AIRLINE AEROFLOT WAS BROKEN UP THE PLANES WILL BE POWERED BY PRATT & WHITNEY 4152 ENGINES AND WILL BE USED ON ROUTES THAT UZBEKISTAN IS SETTING UP BETWEEN TASHKENT AND LONDON FRANKFURT BEIJING KUALA LUMPUR MALAYSIA TEL AVIV JEDDAH SAUDI ARABIA AND ISTANBUL TURKEY PRATT & WHITNEY IS A UNIT OF UNITED TECHNOLOGIES CORP UZBEKISTAN AIRLINES WANTS TO DEVELOP TOURISM IN THE SAMARKAND REGION AND THE A310S WILL ALSO CARRY CARGO THE STICKER PRICE OF AN A310 IS 78 MILLION AIRBUS SOLD FIVE A310S TO THE FORMER AEROFLOT 9303240128 930324 A MARRIAGE MADE AT MICROSOFT GATES TO WED AN INSIDER WILL BILLIONAIRE'S UNION LEAD TO A COMPUTER DYNASTY OR LESSEN HIS AMBITION BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL AMERICA'S RICHEST BACHELOR HAS DECIDED TO GET MARRIED WILLIAM GATES THE 37YEAROLD CHAIRMAN OF MICROSOFT CORP WHOSE PERSONAL WORTH IS SOMEWHERE AROUND 7 BILLION IS ENGAGED TO MELINDA FRENCH 28 A MIDLEVEL EXECUTIVE AT HIS COMPANY MR GATES THE HARDCHARGING FOUNDER OF THE COUNTRY'S MOST SUCCESSFUL SOFTWARE COMPANY HAS LONG BEEN SEEN AS A WORKAHOLIC FOR WHOM MARRIAGE HELD LITTLE INTEREST HE HAS RARELY SHOWN A SOFT SIDE IN PUBLIC WHILE HIS RELATIONSHIP WITH MS FRENCH WAS KNOWN TO HIS FAMILY AND CLOSE FRIENDS MR GATES HAS SHIELDED IT FROM THE PRESS AND THE PUBLIC HE PERSUADED THE AUTHORS OF A NEW BOOK ABOUT HIM STEPHEN MANES AND PAUL ANDREWS TO LEAVE HER NAME OUT SHE'D HAVE TO QUIT HER JOB IF THIS CAME OUT IN A BIG WAY MR GATES TOLD THE WRITERS IN AN INTERVIEW LAST YEAR SHE'D JUST HAVE TO QUIT AND YOU KNOW WHAT WOULD THAT MEAN FOR OUR RELATIONSHIP SHE'D PROBABLY LEAVE HOWEVER A MICROSOFT SPOKESWOMAN SAYS MS FRENCH INTENDS TO STAY AT THE COMPANY SHE HAS BEEN THERE SINCE 1987 AND CURRENTLY IS IN CHARGE OF MICROSOFT'S PUBLISHER PRODUCT A DESKTOP PUBLISHING PROGRAM SUPERVISING ABOUT 50 PEOPLE ONE COLLEAGUE CALLS HER A WELLTHOUGHTOF MANAGER A DALLAS NATIVE SHE HAS A BACHELOR'S DEGREE IN COMPUTER SCIENCE AND AN MBA BOTH FROM DUKE UNIVERSITY AND TAUGHT CHILDREN HOW TO USE COMPUTERS WHILE SHE WAS IN COLLEGE SHE AND MR GATES HAVE DATED OFF AND ON FOR ABOUT FIVE YEARS FRIENDS SAY DESPITE MR GATES'S TOUGH PUBLIC IMAGE HE DOES VALUE FAMILY TIES HE IS VERY CLOSE TO HIS PARENTS WHO LIVE NEARBY AT FAMILY GATHERINGS MS FRENCH HAS BEGUN TO BE TREATED WITH DEFERENCE FOR INSTANCE AT LAST SUMMER'S MICROGAMES AN ANNUAL INVITATIONONLY BASH SPONSORED BY THE GATES CLAN WHERE GUESTS COMPETE IN OFFBEAT CONTESTS MS FRENCH WAS AMONG THE JUDGES THE POSITION IS USUALLY RESERVED FOR MEMBERS OF THE GATES FAMILY ACQUAINTANCES OF MS FRENCH SAY SHE HOLDS HER OWN IN THE RAREFIED COMPANY OF MR GATES AND HAS A PARTICULARLY SHARP SENSE OF HUMOR SHE MAY NEED IT TO DEAL WITH MR GATES WHOSE HABITS STRIKE SOME AS ODD HE SOMETIMES ROCKS HIMSELF BACK AND FORTH DURING MEETINGS AND HAS BEEN KNOWN TO TRY TO IMPRESS WOMEN WITH HIS PHYSICAL PROWESS BY JUMPING OVER CHAIRS FROM A STANDING START FRIENDS SAY MS FRENCH IS INTERESTED IN THE THEATER AND SERVES ON THE BOARD OF DIRECTORS OF THE VILLAGE THEATRE IN THE SEATTLE AREA SHE LIKES TO RUN AND SKI EVERYBODY HERE KNOWS HE'S WILD ABOUT HER SAYS A WOMAN EXECUTIVE AT MICROSOFT THE COMPANY WOULDN'T MAKE EITHER MS FRENCH OR MR GATES AVAILABLE FOR AN INTERVIEW YESTERDAY AT THE COMPANY PEOPLE FROM MS FRENCH'S COWORKERS TO THE BOARD OF DIRECTORS ARE WONDERING WHETHER MARRIED LIFE WILL CHANGE MR GATES ONE QUESTION COULD SETTLING DOWN DILUTE MR GATES'S FEROCIOUS COMPETITIVENESS I DON'T KNOW THE ANSWER TO THAT SAYS DAVID MARQUARDT A MICROSOFT DIRECTOR I'VE BEEN THINKING IT OVER RIVALS IN THE SOFTWARE INDUSTRY WHERE MICROSOFT IS SO DOMINANT THAT THE FEDERAL TRADE COMMISSION IS INVESTIGATING ITS PRACTICES HAVE LONGED FOR MR GATES TO TIE THE KNOT HOPING THIS MIGHT CALM HIS RESTIVE AMBITION WILLARD PETE PETERSON FORMER EXECUTIVE VICE PRESIDENT AT WORDPERFECT CORP AND NOW A SOFTWARE ENTREPRENEUR SPECULATES THAT MATRIMONY WILL INEVITABLY DULL SOME OF MR GATES'S FORMIDABLE POWERS ESPECIALLY IF CHILDREN FOLLOW HE QUIPS IF THE REST OF THE INDUSTRY IS LUCKY HE'LL HAVE A COUPLE OF KIDS SOON MARRIAGE SHOULD PUT TO REST PERSISTENT COMPLAINTS THAT MR GATES WHOSE BOYISH APPEARANCE AND CASUAL ATTIRE CONJURE UP AN IMAGE OF THE NATION'S PREMIER NERD IS ONEDIMENSIONAL EVEN HIS OWN FATHER ONCE SAID HE FEARED MR GATES WAS DEFAULTING ON RESPONSIBILITIES LIKE A FAMILY IN FACT MARRIAGE AND CHILDREN HAVE BEEN ON MR GATES'S MIND FOR SOME TIME THE HUGE 25 MILLION ESTATE HE IS BUILDING IN A LAKESIDE SUBURB OF SEATTLE IS OUTFITTED WITH A CHILDREN'S WING AND SOME OF HIS CLOSEST ASSOCIATES AT MICROSOFT BURNATBOTHENDS GUYS WHO EASILY LAPSE INTO JUVENILE BEHAVIOR RECENTLY HAVE MARRIED AND STARTED FAMILIES ONE OF MR GATES'S BEST FRIENDS STEVEN BALLMER ALSO A BILLIONAIRE BY VIRTUE OF HIS MICROSOFT STOCK MARRIED A MICROSOFT CONSULTANT AND LAST YEAR HAD A CHILD MR GATES AND MS FRENCH WERE THE FIRST PEOPLE OUTSIDE MR BALLMER'S FAMILY TO SEE THE CHILD ACCORDING TO THE NEW GATES BIOGRAPHY BILL IS REALLY A VERY ROMANTIC GUY SAYS ANN WINBLAD A FORMER VENTURE CAPITALIST WHO DATED MR GATES DURING THE 1980S INDEED HE IS SO ROMANTIC THAT HE SAID 18 MONTHS AGO THAT HE WOULD NEVER ASK A FUTURE SPOUSE TO SIGN A PRENUPTIAL AGREEMENT IT WOULDN'T BE NECESSARY HE SAID AT THE TIME HE DOESN'T VIEW MARRIAGE AS A LEGAL AGREEMENT BUT AS A PERSONAL HEARTFELT COMMITMENT SAYS MS WINBLAD MR GATES A NOTORIOUSLY TOUGH NEGOTIATOR WHO HAS INKED FAVORABLE CONTRACTS WITH SOME OF THE GIANTS OF US INDUSTRY WOULDN'T ADDRESS THE PRENUPTIALAGREEMENT ISSUE YESTERDAY A COMPANY SPOKESWOMAN SAID WASHINGTON IS A COMMUNITY PROPERTY STATE CLOSE FRIENDS OF THE COUPLE SAY THEY BOTH HAVE GIVEN THE IMPLICATIONS OF MARRIAGE A LOT OF THOUGHT MR GATES RECENTLY SOUGHT REASSURANCE FROM FRIENDS THAT HE WAS DOING THE RIGHT THING TO JONATHAN LAZARUS A MICROSOFT EXECUTIVE HE SENT THIS ELECTRONIC NOTE YOU SEEM TO LIKE MARRIED LIFE SO THAT'S A GOOD SIGN THAT EVEN INDEPENDENT TYPES LIKE YOU CAN MAKE IT WORK MS FRENCH MEANWHILE IS SAID TO WORRY ABOUT THE IMPACT OF BEING MARRIED TO ONE OF THE NATION'S RICHEST MEN SHE'S CONCERNED ABOUT HOW THIS WILL CHANGE HER LIFE SHE'S MANAGED TO AVOID THE GLARE OF PUBLICITY FOR SO LONG BUT THAT'S CHANGED NOW MR LAZARUS SAYS FOR NOW MR GATES WON'T TALK ABOUT HIS WEDDING PLANS BUT HIS DECISION MAY INDICATE HE HOPES TO GUARD AGAINST THE INEVITABLE DISTRACTIONS OF FAMILY LIFE BY MARRYING SOMEONE WHOSE INTERESTS RUN ALONG THE SAME LINES WHICH LEADS TO ANOTHER CONCERN ON THE PART OF HIS COMPETITORS MS FRENCH HAS JUST THE SORT OF BACKGROUND THAT COULD LEAD TO A FAMILY DYNASTY WITH HER CREDENTIALS THERE'S A REAL DANGER HERE FOR MICROSOFT'S RIVALS SAYS MR PETERSON THE SOFTWARE ENTREPRENEUR THIS COUPLE MAY CREATE A LOT OF BILL JUNIORS AND THEN THE INDUSTRY WILL BE IN MORE TROUBLE ANN WINBLAD IS A PARTNER IN HUMMER WINBLAD VENTURE PARTNERS IN EMERYVILLE CALIF A SOFTWARE VENTURECAPITAL FIRM IN A PAGEONE ARTICLE YESTERDAY ABOUT MICROSOFT CORP CHAIRMAN WILLIAM GATES MS WINBLAD WAS INCORRECTLY IDENTIFIED AS A FORMER VENTURE CAPITALIST 9303240127 930324 TECHNOLOGY & MEDICINE LOTUS WILL ISSUE NEW VERSIONS OF NOTES TO RUN ON NEARLY ALL DESKTOP MACHINES BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL LOTUS DEVELOPMENT CORP TODAY WILL ANNOUNCE NEW VERSIONS OF ITS HOTSELLING NOTES SOFTWARE THAT WILL RUN ON NEARLY ALL DESKTOP COMPUTER DESIGNS PUSHING ITS MOST STRATEGIC PRODUCT INTO A BROADER MARKET THE CAMBRIDGE MASS SOFTWARE MAKER ALSO PLANS TO SELL THE NOTES LINE THROUGH MORE DEALERS EVENTUALLY INCLUDING RETAIL AND EVEN MAILORDER OUTLETS NOTES IS A COMMUNICATIONS AND SHARED DATABASE PROGRAM AT THE VANGUARD OF A NEW CLASS OF SOFTWARE OFTEN CALLED GROUPWARE DESIGNED FOR SIMULTANEOUS USE BY MANY PEOPLE ON A COMPUTER NETWORK ANALYSTS SAY LOTUS HAS A WIDE LEAD IN THIS EMERGING MARKET BUT THEY HAVE BEEN CRITICAL OF THE WAY NOTES HAS BEEN AIMED MOSTLY AT BIG CORPORATE CUSTOMERS TO BROADEN THE PRODUCT'S APPEAL LOTUS SAYS ITS NEW NOTES LINE IS EASIER TO BUY INSTALL AND USE IN SMALL OFFICES NOTES IS THE DEFINING PRODUCT FOR LOTUS IN THE 1990S SAYS JIM MANZI CHAIRMAN AND CHIEF EXECUTIVE OFFICER THERE'S A GIGANTIC MARKET OPPORTUNITY HERE AND LOTUS'S LARGEST COMPETITOR MICROSOFT CORP DOESN'T HAVE ANYTHING THAT EVEN COMES CLOSE HE SAYS DANIEL PETRE A MICROSOFT VICE PRESIDENT COUNTERS THAT OUR VISION OF WORKGROUP' COMPUTING IS MUCH BROADER THAN SOMETHING THAT CAN BE ADDRESSED IN A SINGLE PRODUCT HE SAYS MICROSOFT IS WORKING ON BRINGING NOTESLIKE FEATURES INTO MANY OF ITS PRODUCTS BUT DOESN'T PLAN TO BRING OUT A PRODUCT TO COMPETE DIRECTLY WITH NOTES DESPITE ITS GROWTH NOTES IS STILL DWARFED BY LOTUS 123 THE COMPANY'S FLAGSHIP LINE AND CONTRIBUTES ONLY A SMALL FRACTION OF TOTAL REVENUE WHILE LOTUS WON'T BREAK OUT SPECIFIC RESULTS ITS COMMUNICATIONS PRODUCTS GROUP INCLUDING NOTES AND THE CCMAIL ELECTRONICMAIL LINE ACCOUNTED FOR ONLY 10 OF LOTUS'S 1992 REVENUE OF 900 MILLION UP FROM 5 OF REVENUE IN 1991 NOTES IS A GREAT PRODUCT BUT IT NEEDED WIDER DISTRIBUTION SAYS RICHARD G SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO IT LOOKS LIKE THAT'S WHAT THEY'RE DOING THE NEW NOTES LINE WHICH WILL BE AVAILABLE WITHIN 60 DAYS INCLUDES VERSIONS FOR APPLE COMPUTER INC'S MACINTOSH AND A SERVER VERSION FOR MICROSOFT'S WINDOWS NOTES DESKTOP VERSIONS HAVE ALWAYS RUN UNDER WINDOWS BUT ITS SERVER VERSIONS WHICH OPERATE AT THE HUB OF A COMPUTER NETWORK HAD BEEN LIMITED TO COMPUTERS THAT RUN ON INTERNATIONAL BUSINESS MACHINES CORP'S OS/2 SOFTWARE LATER THIS YEAR NOTES VERSIONS THAT RUN ON UNIX SOFTWARE AND NOVELL INC NETWORK SOFTWARE WILL ALSO BE READY LOTUS SAID LOTUS ALSO WILL ANNOUNCE NEW PRICING OPTIONS INCLUDING A STARTER PACK FOR SMALL OFFICES AT 995 A SINGLE NOTES PACKAGE STILL LISTS FOR 495 BUT USUALLY GOES FOR SIGNIFICANTLY LESS IN VOLUME SALES NOTES HAS REVOLUTIONIZED THE WAY WE COLLECT SHARE AND DISTRIBUTE INFORMATION ACROSS THE GLOBAL ENTERPRISE SAYS CRAIG GOLDMAN CHIEF INFORMATION OFFICER AT CHASE MANHATTAN CORP NEW YORK CHASE ALREADY OWNS 3000 COPIES OF NOTES AND IS LIKELY TO BUY ANOTHER 3000 COPIES BY THE END OF THE YEAR MR GOLDMAN SAYS NOTES ENABLES USERS TO STORE AND SHARE INFORMATION IN ALMOST ANY FORM INCLUDING TEXT NUMERICAL SPREADSHEETS VIDEO FAXES SCANNED IMAGES SUCH AS PICTURES OR NEWS CLIPPINGS AND MULTIMEDIA FORMATS STILL NOTES CAN BE A DIFFICULT SALE PEOPLE EITHER DON'T UNDERSTAND IT OR CAN'T LIVE WITHOUT IT SAYS STUART WOODRING A MARKET ANALYST WITH FORRESTER RESEARCH INC HE SAYS IT PROVIDES A POWERFUL COLLECTIVE MEMORY FOR CORPORATIONS OR WORK GROUPS AND IS PROVING POPULAR IN CUSTOMER SERVICE AND SALES MANAGEMENT APPLICATIONS AND FOR COORDINATING PRODUCTDEVELOPMENT TEAMS 9303240126 930324 TECHNOLOGY & MEDICINE DRUG RESEARCHERS REPORT SAFE' FORM OF SELDANE DRUG BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS MAY HAVE FOUND A FORM OF THE POPULAR PRESCRIPTION ANTIHISTAMINE SELDANE THAT CAN BE SAFELY TAKEN WITH OTHER DRUGS AND CERTAIN FOODS THE NEW FORM OF SELDANE IF FURTHER TESTS PROVE IT SAFE AND EFFECTIVE WOULD AVOID A PROBLEM THAT HAS DOGGED THE DRUG FOR TWO YEARS IN RARE CASES PATIENTS WHO TAKE THE ANTIALLERGY MEDICATION IN HIGH DOSES OR WITH CERTAIN ANTIFUNGAL AGENTS AND ANTIBIOTICS CAN DEVELOP LIFETHREATENING HEART PROBLEMS WHEN TAKEN BY THEMSELVES IN THE PROPER DOSES SELDANE AND SELDANED ARE SAFE WORRIED THAT PHYSICIANS AREN'T AWARE OF THE INTERACTION PROBLEM OR AREN'T PAYING ANY ATTENTION TO IT THE FOOD AND DRUG ADMINISTRATION IN 1990 AND AGAIN LAST YEAR TOLD THE DRUG'S MAKER MARION MERRELL DOW INC TO STRENGTHEN ITS WARNINGS AGAINST TAKING SELDANE WITH THE ANTIFUNGAL AGENT KETOCONAZOLE SOLD BY JOHNSON & JOHNSON AS NIZORAL AND THE ANTIBIOTIC ERYTHROMYCIN SOME RESEARCHERS SUSPECT GRAPEFRUIT JUICE MIGHT PRODUCE THE SAME PROBLEMS IN A STUDY PUBLISHED IN THIS WEEK'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION RESEARCHERS SAY THEY UNCOVERED THE CAUSE OF THE DRUG INTERACTION PROBLEM THE BODY NORMALLY CONVERTS SELDANE INTO TERFENADINE CARBOXYLATE WHICH IS CONSIDERED TO BE THE ACTIVE ANTIHISTAMINE BUT KETOCONAZOLE AND ERYTHROMYCIN THE RESEARCHERS FOUND BLOCK THE BODY'S ABILITY TO METABOLIZE SELDANE IT REMAINS THEN IN ITS UNCONVERTED FORM AND CAN CAUSE A RARE HEART CONDITION CALLED TORSADES DE POINTES AN ABNORMALLY FAST HEARTBEAT THAT CAN BE FATAL THE CONVERTED FORM OF SELDANE TERFENADINE CARBOXYLATE DOESN'T INTERFERE WITH THE HEART'S FUNCTION ACCORDING TO RAYMOND L WOOSLEY CHAIRMAN OF THE DIVISION OF CLINICAL PHARMACOLOGY AT GEORGETOWN UNIVERSITY MEDICAL CENTER AND THE LEAD RESEARCHER IN THE STUDY THE CONVERTED FORM OF SELDANE APPEARS SAFE IN PRELIMINARY ANIMAL STUDIES DR WOOSLEY SAID WE THINK IT WILL BE A GOOD ANTIHISTAMINE MARION MERRELL DOW AND SEPRACOR INC WHICH PROVIDED THE TERFENADINE CARBOXYLATE TO THE RESEARCHERS ARE WORKING ON A NEW FORM OF SELDANE BUT THE DRUG STILL NEEDS TO GO THROUGH YEARS OF TESTING AND REVIEW BEFORE IT REACHES THE MARKET HE ADDED IN THE MEANTIME SAID CARL C PECK DIRECTOR OF THE FDA'S CENTER FOR DRUG EVALUATION AND RESEARCH IT'S IMPORTANT TO REALIZE THAT SELDANE HAS BEEN TAKEN BY MANY HUNDREDS OF THOUSANDS OF PEOPLE WITHOUT PROBLEM THIS SHOULDN'T DAMN SELDANE BUT PHYSICIANS NEED TO PAY ATTENTION TO POSSIBLE DRUG INTERACTIONS WHEN WRITING PRESCRIPTIONS HE SAID 9303240125 930324 DISCOUNT CORP SAYS SEC IS CONSIDERING ADMINISTRATIVE ACTION WASHINGTON DISCOUNT CORP OF NEW YORK A PRIMARY DEALER IN GOVERNMENT BONDS SAID IT HAS BEEN ADVISED THAT THE SECURITIES AND EXCHANGE COMMISSION IS CONTEMPLATING BRINGING AN ADMINISTRATIVE ACTION AGAINST THE COMPANY FOR RECORDKEEPING VIOLATIONS IN CONNECTION WITH NONCOMPETITIVE BIDS ENTERED AT VARIOUS AUCTIONS OF US GOVERNMENT SECURITIES IN ITS YEAREND FILING WITH THE SECURITIES AND EXCHANGE COMMISSION DISCOUNT SAID THE SEC ACTION CONCERNS BIDS ENTERED FOR A CUSTOMER OF THE COMPANY'S RETAIL DIVISION IN 1989 AND 1991 THAT DIVISION WHICH WAS CLOSED LATE LAST YEAR SUBMITTED NONCOMPETITIVE BIDS AS AN ACCOMMODATION TO CUSTOMERS FOR WHICH IT CHARGED NO FEE ACCORDING TO THE COMPANY DISCOUNT SAID IT STOPPED SUBMITTING SUCH BIDS IN 1991 THE BOND DEALER SAID IT IS CURRENTLY DISCUSSING SETTLEMENT OF THE ADMINISTRATIVE ACTION WITH THE SEC STAFF IT SAID IT DOESN'T BELIEVE THE PROCEEDING OR A SETTLEMENT WILL HAVE A MATERIAL IMPACT ON THE COMPANY'S BUSINESS 9303240124 930324 AMERICAN EXPRESS DEBT DOWNGRADED BY S&P SHEARSON'S AFFIRMED NEW YORK THE DEBT RATINGS OF AMERICAN EXPRESS CO AND CERTAIN OF ITS SUBSIDIARIES WERE DOWNGRADED BY STANDARD & POOR'S CORP WHICH CITED CONCERNS WITH PROFIT AT THE COMPANY'S CORE TRAVEL RELATED SERVICES UNIT SEPARATELY THE RATINGS AGENCY SAID IT REMOVED SHEARSON LEHMAN BROTHERS HOLDINGS INC FROM ITS CREDITWATCH AND AFFIRMED THE RATINGS NOTING SUBSTANTIAL PROGRESS IN STREAMLINING ITS OPERATIONS AND REMOVING TROUBLED ASSETS FROM ITS BALANCE SHEET THE SHEARSON UNIT RECENTLY AGREED TO SELL ITS RETAIL AND ASSET MANAGEMENT BUSINESSES TO PRIMERICA CORP SHEARSON'S SENIOR DEBT RATING WAS AFFIRMED AT SINGLEA THE DOWNGRADE FOR THE PARENT TO SINGLEAPLUS FROM DOUBLEAMINUS AND THE DECISION TO AFFIRM SHEARSON PUTS BOTH RATINGS IN LINE WITH THOSE OF MOODY'S INVESTORS SERVICES INC S&P PLACED THE PARENT COMPANY ON CREDITWATCH WITH NEGATIVE IMPLICATIONS FEB 2 IN DOWNGRADING AMERICAN EXPRESS S&P SAID THE TRAVEL RELATED SERVICES UNIT FACES INCREASING COMPETITIVE PRESSURES BOTH IN THE US AND ABROAD WHICH IS EXPECTED TO CONTINUE TO AFFECT NET INCOME THE FLAGSHIP UNIT PROVIDES CHARGE AND CREDIT CARDS AS WELL AS OTHER TRAVEL SERVICES AMERICAN EXPRESS SAID WE ARE CONFIDENT THAT THE PROGRESS WE ARE MAKING AT TRS WILL ENABLE US TO COMPETE MORE EFFECTIVELY AND GROW OUR CARD AND RELATED BUSINESSES IN AN INCREASINGLY COMPETITIVE MARKETPLACE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMERICAN EXPRESS GAINED 625 CENTS TO 28875 9303240123 930324 TEAMSTERS JOIN MACHINISTS IN NORTHWEST PACT TALKS WASHINGTON THE TEAMSTERS UNION JOINED THE INTERNATIONAL ASSOCIATION OF MACHINISTS IN CONTRACT TALKS WITH NORTHWEST AIRLINES EFFECTIVELY ISOLATING THE PILOTS' UNION AT THE AIRLINE A TEAMSTERS' SPOKESWOMAN SAID TEAMSTERS PRESIDENT RON CAREY MET YESTERDAY WITH REPRESENTATIVES OF THE MACHINISTS AND WITH JOHN DASBURG NORTHWEST'S CHIEF EXECUTIVE OFFICER THE SPOKESWOMAN SAID THE TALKS WERE PRODUCTIVE NORTHWEST WOULDN'T COMMENT THE MACHINISTS STARTED SEPARATE TALKS WITH NORTHWEST LAST WEEK AFTER CLAIMING THAT THE PILOTS HAD BREACHED AN AGREEMENT AMONG NORTHWEST'S LABOR UNIONS BY MEETING SEPARATELY WITH THE AIRLINE THE TEAMSTERS DECISION TO JOIN THE MACHINISTS' NEGOTIATIONS LEAVES THE AIR LINE PILOTS ASSOCIATION IN A LABOR COALITION WITH THREE SMALLER UNIONS AT NORTHWEST NORTHWEST A ST PAUL MINN UNIT OF CLOSELY HELD WINGS HOLDINGS INC WANTS 883 MILLION IN WAGE AND BENEFIT CONCESSIONS OVER THREE YEARS FROM ITS UNIONIZED EMPLOYEES A SPOKESMAN FOR NORTHWEST'S PILOTS SAID THAT UNION WILL CONTINUE TO INSIST ON SIMULTANEOUS CONTRIBUTIONS BY ALL STAKEHOLDERS INCLUDING LENDERS 9303240121 930324 TECHNOLOGY & MEDICINE CRAY RESEARCH SELLS SMALLER VERSIONS OF ITS TOP MODEL BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL CRAY RESEARCH CORP RESPONDING TO MARKET DEMAND FOR CHEAPER SUPERCOMPUTERS SAID IT HAS BEGUN SELLING ITS TOPOFTHELINE MODEL IN SMALLER VERSIONS SEPARATELY JAPANESE COMPUTER COMPANY NEC CORP ONE OF CRAY RESEARCH'S PRINCIPAL RIVALS DISCLOSED THAT IT SOLD JUST EIGHT SUPERCOMPUTERS IN ALL OF 1992 DOWN 43 FROM THE 14 IT SOLD IN THE PRIOR YEAR IN A REPORT PUBLISHED IN NIHON KOGYO SHIMBUN A JAPANESE TRADE NEWSPAPER AND CONFIRMED BY AN NEC SPOKESWOMAN THE COMPANY ALSO SAID IT IS LOWERING THE LEASE RATES ON ITS SX3R SERIES SUPERCOMPUTERS BY AS MUCH AS 38 IN RESPONSE TO FLAGGING CAPITAL SPENDING BY ITS JAPANESE CUSTOMERS THE SAME SORT OF RATIONALE LED CRAY RESEARCH TO OFFER ITS YMP C90 SUPERCOMPUTER WHICH COMES WITH 16 PROCESSORS AND SELLS FOR 305 MILLION IN VERSIONS CONTAINING ONE TO EIGHT PROCESSORS THE SMALLEST SYSTEM THE C92A WILL HAVE A LIST PRICE AS LOW AS 32 MILLION THE EAGAN MINN COMPANY ALSO RENAMED ITS YMP C90 MODEL THE C916 TO DISTANCE THE NEW LINE FROM THE OLDER YMP SERIES CRAY RESEARCH SAID IT WILL CONTINUE TO SELL OLDER MODELS FOR NOW TO ACCOMMODATE THE SUB3 MILLION PRICE POINT INCLUDING THE YMP EL A MINISUPERCOMPUTER THAT SELLS FOR AS LITTLE AS 300000 THE TRANSITION WILL BE A DELICATE ONE FOR CRAY RESEARCH THE WORLD'S BIGGEST MANUFACTURER OF SUPERCOMPUTERS THE MARKET FOR THE ULTRAFAST MACHINES WHICH ARE USED EXTENSIVELY IN GOVERNMENT INTELLIGENCEGATHERING OILFIELD EXPLORATION AND SCIENTIFIC RESEARCH HAS BEEN WEAKENED BY THE RECESSION AND THE RISE IN INEXPENSIVE ALTERNATIVES SUCH AS WORKSTATIONS ACCORDING TO INTERNATIONAL DATA CORP FRAMINGHAM MASS SUCH FACTORS LED TO A 41 DECLINE IN SALES OF HIGHPERFORMANCE SYSTEMS WORLDWIDE LAST YEAR TO ABOUT 33 BILLION CRAY RESEARCH HAS BEEN HIT HARD BY THE DOWNTURN ESPECIALLY IN THE MIDDLE RANGE OF YMP PRODUCTS LAST YEAR THE COMPANY REPORTED A LOSS OF 149 MILLION OR 56 CENTS A SHARE ITS FIRST YEARLY LOSS EVER WHILE REVENUE FELL 8 TO 7976 MILLION ONE BRIGHT SPOT HAS BEEN THE C90 A ONEYEAROLD SYSTEM WHOSE ORDERS HAVE FAR OUTPACED THE COMPANY'S MANUFACTURING ABILITY COMPANY OFFICIALS SAID THEY'VE IRONED OUT PRODUCTION SNAFUS AND EXPECT TO BE ABLE TO FULFILL DEMAND FOR THE FULL RANGE OF SYSTEMS NOW BEING MARKETED THE NEW MACHINES WILL BE ROUGHLY TWO TO THREE TIMES AS FAST AS COMPARABLE YMPS WHILE COSTING JUST 20 MORE SOME WILL BE AIRCOOLED WHILE OTHERS WILL STILL REQUIRE LIQUID COOLING SYSTEMS THE COMPANY YESTERDAY ANNOUNCED IT RECEIVED AN ORDER FOR AN EIGHTPROCESSOR C98 SYSTEM FROM GENERAL ATOMICS TO BE INSTALLED IN THE SAN DIEGO SUPERCOMPUTER CENTER TERMS WEREN'T DISCLOSED CRAY RESEARCH'S NEW STRATEGY COULD THROW COLD WATER ON MARKETING PLANS BY RIVAL CRAY COMPUTER CORP A SPINOFF THAT IS RUN BY SUPERCOMPUTER PIONEER SEYMOUR CRAY AND IS BASED IN COLORADO SPRINGS COLO MR CRAY WHO IS JUST BEGINNING TO MARKET HIS CRAY3 SUPERCOMPUTER HAD HOPED TO BE ABLE TO PERSUADE CUSTOMERS TO TURN TO HIM FOR SYSTEMS OF LESS THAN 16 PROCESSORS A NICHE LEFT OPEN BY CRAY RESEARCH'S INITIAL DECISION TO MARKET ONLY FULLSIZED C90S 9303240120 930324 WHAT'S NEWS WORLDWIDE A RUSSIAN COURT RULED YELTSIN'S DECLARATION OF EMERGENCY RULE WAS ILLEGAL THE CHAIRMAN OF PARLIAMENT SAID AN EMERGENCY SESSION OF THE FULL LEGISLATURE SHOULD BE CONVENED TO BEGIN IMPEACHMENT PROCEEDINGS FOLLOWING THE DECISION BY THE CONSTITUTIONAL COURT THE SESSION COULD BEGIN FRIDAY YELTSIN WHO RECEIVED THE COURT'S DECISION DURING FUNERAL SERVICES FOR HIS MOTHER ACCORDING TO A RUSSIAN PRESS REPORT HAS VOWED TO PUSH AHEAD WITH PLANS FOR AN APRIL 25 REFERENDUM ON WHO IS TO RULE RUSSIA HIS GOVERNMENT ALSO STAYED ON THE OFFENSIVE YESTERDAY WITH THE VICE PREMIER CALLING FOR THE DISMISSAL OF THE CENTRAL BANK CHIEF CLINTON AT A NEWS CONFERENCE BACKED YELTSIN STRONGLY AND PLEDGED TO BRING AN AGGRESSIVE AND QUITE SPECIFIC PLAN FOR RUSSIAN AID TO A SUMMIT NEXT MONTH UN OFFICIALS SAID FRENCH AND BRITISH HELICOPTERS WOULD BEGIN FERRYING WOUNDED FROM THE BOSNIAN MUSLIM ENCLAVE OF SREBRENICA TODAY TESTING BOSNIAN SERB PROMISES TO PERMIT SUCH FLIGHTS RELIEF FLIGHTS INTO SARAJEVO WERE SUSPENDED FOR A FOURTH DAY BECAUSE OF FIGHTING NEAR THE AIRPORT BUT SHELLING OF WESTERN SUBURBS DIMINISHED CLINTON SAID HE WOULDN'T ASK SUPREME COURT CANDIDATES THEIR VIEWS ON SPECIFIC CASES BUT SAID HE WANTED A NOMINEE WHO BELIEVES IN A CONSTITUTIONAL RIGHT TO PRIVACY THE UNDERPINNING FOR ABORTION RIGHTS HE ALSO SAID IT WAS PROBABLY CONSTITUTIONAL TO RESTRICT THE DUTY ASSIGNMENTS OF HOMOSEXUALS IN THE MILITARY RESEARCHERS HAVE IDENTIFIED THE DEFECTIVE GENE THAT UNDERLIES HUNTINGTON'S DISEASE WHICH ERUPTS IN MIDDLE AGE AND GRADUALLY DESTROYS MENTAL AND PHYSICAL FUNCTIONING THE DISCOVERY LONG SOUGHT BY THE HUMAN GENOME PROJECT WILL LEAD TO A TEST FOR THE DISEASE THERE IS HOWEVER CURRENTLY NO TREATMENT PALESTINIAN DELEGATES ARE TO MEET WITH SECRETARY OF STATE CHRISTOPHER THIS WEEK TO DISCUSS RESUMING MIDEAST PEACE TALKS STALLED SINCE ISRAEL'S EXPULSION OF 400 PALESTINIAN MILITANTS IN DECEMBER IN THE ISRAELIOCCUPIED WEST BANK A SETTLER SHOT AND KILLED A PALESTINIAN YOUTH WHO HAD BEEN TIED UP AFTER STABBING ANOTHER SETTLER ISRAEL'S PARLIAMENT IS TO VOTE TODAY ON A SUCCESSOR TO PRESIDENT HERZOG WHO IS RETIRING AFTER 10 YEARS THE LEADING CANDIDATE IS EZER WEIZMAN A FORMER DEFENSE MINISTER WHO BACKS PEACE TALKS WITH THE PALESTINIANS THE CONSERVATIVE LIKUD PARTY IS EXPECTED TO PICK BENJAMIN NETANYAHU AS ITS LEADER ATTORNEY GENERAL RENO SAID SHE FAVORS FEDERAL LEGISLATION TO PROTECT WOMEN FROM PROTESTERS WHO ATTEMPT TO BLOCK ABORTION CLINIC ENTRANCES CALLING CURRENT LAWS INADEQUATE IN HER FIRST NEWS CONFERENCE SINCE ASSUMING OFFICE RENO SAID A RECENT RULING BY THE SUPREME COURT HAS LIMITED FEDERAL AUTHORITY TO ASSURE ACCESS TO THE CLINICS THE SUPREME COURT UPHELD THE GOVERNMENT'S POLICY OF DETAINING CHILDREN SUSPECTED OF BEING ILLEGAL IMMIGRANTS PENDING THEIR DEPORTATION HEARINGS THE 72 DECISION OVERTURNED A RULING BY A US APPEALS COURT IN CALIFORNIA THAT SAID HOLDING THE CHILDREN IN GOVERNMENT DETENTION CAMPS VIOLATED THEIR CONSTITUTIONAL DUEPROCESS RIGHTS DE KLERK AND MANDELA MET FOR THE FIRST TIME IN SIX MONTHS TO DISCUSS THE RESUMPTION OF TALKS ON ENDING WHITE RULE IN SOUTH AFRICA SPOKESMEN FOR THE TWO LEADERS SAID DE KLERK IS TO ADDRESS A SPECIAL SESSION OF PARLIAMENT TODAY TO DISCUSS A JUDICIAL PANEL'S REPORT ON A BLACK GROUP SUSPECTED IN THE RECENT KILLINGS OF FOUR WHITES GUNS KILLED 4173 US TEENAGERS IN 1990 A RECORD THE CENTERS FOR DISEASE CONTROL AND PREVENTION SAID FOR BLACK MALES AGE 15 TO 19 THE RATE OF GUNRELATED DEATHS TRIPLED FROM 1985 TO 1990 THE RATE IN 1990 WAS 11 TIMES HIGHER THAN THAT FOR WHITE MALES IN THAT AGE RANGE FOR THOSE AGE 15 TO 24 GUNS CAUSED ONE OUT OF FOUR DEATHS IN 1990 THE JUSTICE DEPARTMENT DECIDED NOT TO FIGHT AN APPEALS COURT RULING THAT 1989 OSHA STANDARDS WERE ILLEGAL BECAUSE THE AGENCY DIDN'T GIVE ENOUGH SUPPORTING DATA THE DEPARTMENT'S DECISION MADE OVER LABOR DEPARTMENT OBJECTIONS ALLOWS COMPANIES THE OPTION OF RELAXING STANDARDS ON 376 TOXIC SUBSTANCES INVESTIGATORS ARE PREPARING TO WRAP UP WORK AT THE SCENE OF THE WORLD TRADE CENTER BOMBING DESPITE FAILING TO FIND THE BOMB'S DETONATOR THE HEAD OF THE NEW YORK BOMB SQUAD SAID WORK AT THE SITE WOULD WIND UP FRIDAY BUT WOULD CONTINUE OFFSITE 9303240119 930324 MOTOWN RECORDS SETTLES BATTLE OVER DISTRIBUTION UNIVERSAL CITY CALIF ENDING A FIERCE HOLLYWOOD LEGAL BATTLE MCA INC POLYGRAM NV MOTOWN RECORDS AND INVESTMENT FIRM BOSTON VENTURES SAID THEY AGREED TO SETTLE LITIGATION OVER MOTOWN RECORDS' DISTRIBUTION PACT TERMS WEREN'T DISCLOSED BUT THE PARTIES SAID THE SETTLEMENT IN PART CALLS FOR BOSTON VENTURES TO PURCHASE MCA'S 18 STAKE IN MOTOWN BOSTON VENTURES BASED IN BOSTON ALREADY OWNS 70 OF MOTOWN THE LITIGATION WHICH BEGAN IN MAY 1991 INVOLVED MOTOWN TERMINATING ITS DISTRIBUTION AGREEMENT WITH MCA AND SWITCHING TO POLYGRAM WITH MOTOWN CHARGING THAT MCA DIDN'T ADEQUATELY PROMOTE ITS RECORDS AMONG OTHER THINGS MCA AND BOSTON VENTURES TOGETHER BOUGHT MOTOWN IN 1988 BUT A CORPORATE CULTURE CLASH AND HOLLYWOOD EGOS HELPED TO SOUR MCA'S RELATIONS WITH MOTOWN MCA IS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO POLYGRAM IS 80OWNED BY PHILIPS ELECTRONICS NV THE COMPANIES SAID THEY ALSO EXPECT THAT THE LAWSUITS PENDING BETWEEN MCA AND POLYGRAM WILL BE RESOLVED IN CONNECTION WITH THE AGREEMENT 9303240118 930324 OTC FOCUS OVERTHECOUNTER STOCKS FALL 158 POINTS AS POLITICAL STRIFE IN RUSSIA CONTINUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS WERE FIRMER FOR MOST OF THE DAY BUT FELL NEAR THE CLOSING BELL AMID CONTINUING POLITICAL STRIFE IN RUSSIA AND UNCERTAINTY AS THE FIRST QUARTER COMES TO A CLOSE THE NASDAQ COMPOSITE INDEX SHOWED SOME MUSCLE THROUGHOUT THE TRADING SESSION BUT ULTIMATELY GAVE UP 158 POINTS OR 023 TO 67504 DECLINING STOCKS LED ADVANCERS 1339 TO 1208 THE DOW JONES INDUSTRIAL AVERAGE ENDED WITH A LOSS OF 162 POINTS OR 005 TO 346186 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 008 POINT OR 003 TO 24726 DENNIS MURRAY HEAD OTC TRADER AT DAIN BOSWORTH SAID INVESTORS ARE TAKING PROFITS WHEREVER THEY CAN AS THEY RESHUFFLE THEIR PORTFOLIOS IN ANTICIPATION OF THE QUARTER'S END STILL HE SAID YESTERDAY'S SESSION WAS NOT THAT DYNAMIC MR MURRAY ADDED THAT EVERYONE'S STILL FIXATED ON INTEREST RATES AND IN THE ABSENCE OF A WORLDWIDE CATACLYSMIC EVENT SMALL CAP STOCKS ARE STILL GOING TO DO VERY WELL TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME CLIMBED TO 192703550 SHARES FROM 179755400 MONDAY JEFF KENIS VICE PRESIDENT OF EQUITY TRADING AT ROBINSON HUMPHREY SAID INVESTORS ARE PLANTED FIRMLY ON THE SIDELINES AS THEY TRY TO SHAKE OFF NERVOUSNESS CAUSED BY RUSSIA'S POLITICAL PROBLEMS AND THE EFFECTS OF PRESIDENT CLINTON'S ECONOMIC INITIATIVES I SEE A LACK OF DIRECTION AT THIS POINT AND A LOT OF SIDEWAYS ACTION HE SAID NELSON GOLD SENIOR VICE PRESIDENT OF OTC TRADING AT INTERSTATE JOHNSON/LANE SAID HE EXPECTS MARKET PLAYERS TO REMAIN HESITANT UNTIL THERE IS MORE DEFINITIVE NEWS OUT OF RUSSIA AMONG INDUSTRY GROUPS TECHNOLOGY STOCKS MUSTERED SOME GAINS THOUGH OBSERVERS FOUND DIFFICULTY PINPOINTING REASONS FOR THE TURNAROUND AST RESEARCH EDGED UP 1/2 TO 14 THE IRVINE CALIF PERSONAL COMPUTER COMPANY SAID IT HAS INDEFINITELY POSTPONED ITS OFFERING OF LIQUID YIELD OPTION NOTES CITING UNFAVORABLE MARKET CONDITIONS THE COMPANY SAID THE POSTPONEMENT WON'T AFFECT ITS OPERATING PLANS LEGENT CORP A SOFTWARE COMPANY BASED IN VIENNA VA ROSE 2 3/8 TO 40 3/4 APPLIED MATERIALS A MANUFACTURER OF SEMICONDUCTOR WAFER FABRICATION EQUIPMENT ROSE 1 1/4 TO 43 1/4 AND BMC SOFTWARE OF SUGAR LAND TEXAS CLIMBED 1 TO 47 3/4 SEVERAL SOFTWARE COMPANIES WHICH HAD GAINS EARLIER IN THE DAY FELL DESPITE POSITIVE INDIVIDUAL COMPANY NEWS ORACLE SYSTEMS DROPPED WAS UNCHANGED AT 34 7/8 ALTHOUGH THE COMPANY'S FEDERAL DIVISION UNVEILED GENERADA V10 AN ADA CODE GENERATOR DEVELOPED JOINTLY WITH VERDIX CORP AND ITS MERIDIAN SOFTWARE SYSTEMS SUBSIDIARY VERDIX WAS UNCHANGED AT 3 1/2 AUTODESK FINISHED 5/8 LOWER AT 40 3/4 AFTER THE COMPANY'S MULTIMEDIA DIVISION ANNOUNCED A 500 TRADEUP DISCOUNT ON THE PURCHASE PRICE OF ITS 3D STUDIO SOFTWARE WHICH HAS A SUGGESTED RETAIL PRICE OF 2995 NOVELL SHARES ENDED UNCHANGED AT 32 1/2 AFTER THE COMPANY SAID IT HAS BEGUN TO OFFER ON A PILOT BASIS NOVELL ENTERPRISE DEVELOPER SERVICES A SUITE OF FEEBASED SPECIALIZED SERVICES THE COMPANY ALSO BROADENED ITS INDUSTRY STANDARD 32BIT ODI NETWORK SERVER DRIVERS TO RUN ON ALL POPULAR OPERATING SYSTEMS PLATFORMS INTEL THE SANTA CLARA CALIF SEMICONDUCTOR COMPANY FELL 1/2 TO 112 1/2 MONDAY THE COMPANY SAID IT HAS BEGUN SHIPPING ITS PENTIUM MICROPROCESSOR APPLE COMPUTER SLID 1/2 TO 52 3/4 DELL COMPUTER FELL 5/8 TO 33 7/8 AND MICROSOFT SHED 1/4 TO 83 1/8 MEDICALRELATED STOCKS FINISHED MOSTLY LOWER AFTER PRESIDENT CLINTON SAID HE HASN'T YET DECIDED TO HOW TO PAY FOR THE COST OF INSURING CITIZENS WHO CAN'T GET HEALTH INSURANCE HEALTH MAINTENANCE ORGANIZATIONS OXFORD HEALTH PLANS DROPPED 1/2 TO 36 1/2 AND AND US HEALTHCARE FELL 1/4 TO 41 1/2 IN A MOVE TO BROADEN THE TYPES OF PRODUCT TRADED ON THE NASDAQ MARKET THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ON FRIDAY FILED FOR SECURITIES AND EXCHANGE COMMISSION APPROVAL TO TRADE SOME HYBRID SECURITIES SUCH AS LIQUID YIELD OPTION NOTES HYBRIDS COMBINE THE ATTRIBUTES OF DIFFERENT SECURITIES TO CREATE A NEW TYPE OF ISSUE FOR EXAMPLE A CORPORATION MAY ISSUE BONDS WITH AN INTEREST RATE THAT VARIES WITH THE PERFORMANCE OF A PARTICULAR STOCK INDEX OR COMMODITY THE NASD ISN'T BREAKING ANY NEW GROUND WITH ITS FILING BOTH THE AMERICAN STOCK EXCHANGE AND NEW YORK STOCK EXCHANGE HAVE ALREADY RECEIVED SIMILAR APPROVALS 9303240117 930324 BUSINESS BRIEF CENTERIOR TO SLASH ITS WORK FORCE 14 TAKE A 20 MILLION CHARGE THIS YEAR THE JOB CUTS WHICH WILL TAKE PLACE THIS YEAR ARE EXPECTED TO SAVE THE UTILITY 64 MILLION ANNUALLY BY 1994 CENTERIOR ALSO SAID ITS MANAGEMENT TEAMS ARE STUDYING OTHER RESTRUCTURINGS TO FURTHER REDUCE COSTS AND BOOST REVENUES CENTERIOR INDEPENDENCE OHIO HOPES TO MAKE MOST OF THE JOB CUTS THROUGH AN EARLY RETIREMENT PROGRAM BUT IF TOO FEW EMPLOYEES SIGN UP IT WILL FIRE WORKERS EMPLOYEES AT LEAST 55 YEARS OLD OR WHOSE COMBINED AGE AND YEARS AT CENTERIOR EQUAL AT LEAST 70 ARE ELIGIBLE FOR EARLY RETIREMENT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY CENTERIOR'S SHARE PRICE ROSE 25 CENTS TO END AT 19875 CENTERIOR WHICH OWNS CLEVELAND ELECTRIC ILLUMINATING CO AND TOLEDO EDISON CO ALSO SAID IT WILL SHUTTER TWO COALFIRED PLANTS TO CUT COSTS IT BELIEVES THE 200 WORKERS AT THE PLANTS WILL EITHER LEAVE THROUGH THE EARLY RETIREMENT PROGRAM OR BE TRANSFERRED TO OTHER FACILITIES IN A STATEMENT THE COMPANY INDICATED IT ALSO EXPECTS TO ANNOUNCE A RESTRUCTURING CONSISTENT WITH THE REDUCED WORK FORCE ONE POSSIBLE RESTRUCTURING WOULD INVOLVE ELIMINATING CERTAIN LAYERS OF MANAGEMENT IF SEVERAL SENIOR EXECUTIVES RETIRE UNDER THE PROGRAM ANALYSTS ALSO SUGGESTED CENTERIOR MIGHT MOVE TO FURTHER CONSOLIDATE ITS TWO SUBSIDIARIES BUT A COMPANY SPOKESMAN SAID I DON'T THINK WE'RE LOOKING AT THAT STEP IMMEDIATELY WHAT WE HAVE TO DO IS FIND THE LAST VESTIGES OF DUPLICATION CENTERIOR HAS HAD A RELATIVELY HIGH COST STRUCTURE HAVING TAKEN ON HUGE AMOUNTS OF DEBT TO BUILD EXPENSIVE NUCLEAR POWER PLANTS IN THE 1970S AND 1980S SAID BARRY M ABRAMSON AN ANALYST WITH PRUDENTIAL SECURITIES RESEARCH IN SPITE OF THE DEBT HE ADDED THE COMPANY RESISTED MAKING DEEP CUTS TO ELIMINATE REDUNDANCIES AFTER THE 1986 MERGER OF CLEVELAND ELECTRIC AND TOLEDO EDISON AT THE TIME HIGH COSTS WEREN'T MUCH OF A PROBLEM BECAUSE REGULATORS EASILY GRANTED RATE INCREASES AND COMPETITION WAS NEARLY NONEXISTENT NOW YOU'VE GOT TO FIGHT TO HOLD ON TO CUSTOMERS SAID MR ABRAMSON INDEED THE CITY OF TOLEDO IS CONSIDERING SETTING UP A MUNICIPAL UTILITY TO TRY TO BUY ELECTRICITY AT A CHEAPER RATE DESPITE CENTERIOR'S PROMISE TO CONTRIBUTE 6 MILLION TO AREA CUSTOMERS THROUGH ENERGY EFFICIENCIES AND ECONOMIC DEVELOPMENT ASSISTANCE IN ADDITION THE COMPANY HAS FROZEN RATES FOR BOTH TOLEDO AND CLEVELAND CUSTOMERS UNTIL 1996 9303240116 930324 DIVIDEND NEWS VALLEY NATIONAL BANCORP VALLEY NATIONAL BANCORP WAYNE NJ APPROVED A 5FOR4 STOCK SPLIT AND INCREASED ITS QUARTERLY DIVIDEND 10 THE COMPANY SAID THE STOCK SPLIT WILL BE ISSUED APRIL 16 TO STOCK OF RECORD THAT DATE ANY FRACTIONAL SHARES WILL BE PAID OUT IN CASH FOLLOWING THE SPLIT VALLEY NATIONAL WILL HAVE ABOUT 238 MILLION SHARES OUTSTANDING THE COMPANY'S QUARTERLY DIVIDEND ROSE TO 22 CENTS FROM 20 CENTS ON A POSTSPLIT BASIS THE COMPANY DIDN'T PROVIDE A PAYMENT AND RECORD DATE FOR THE NEW DIVIDEND VALLEY NATIONAL OPERATES 53 BRANCHES IN NEW JERSEY AND HAS MORE THAN 3 BILLION IN ASSETS 9303240115 930324 BANK OF CANADA'S CROW DEFENDS GOAL OF PRICE STABILITY BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA BANK OF CANADA GOVERNOR JOHN CROW CRITICIZED BY SOME POLITICIANS AS AN OVERZEALOUS INFLATION FIGHTER DEFENDED HIS GOAL OF PRICE STABILITY AND HELD OUT THE PROSPECT OF A NONINFLATIONARY ECONOMIC RECOVERY FOR CANADA THE GOVERNOR NOW IN THE FINAL YEAR OF HIS CURRENT SEVENYEAR TERM TOOK STOCK OF THE NATION'S ECONOMY IN HIS ANNUAL REPORT TO PARLIAMENT WHETHER MR CROW IS REAPPOINTED TO A SECOND TERM PROBABLY WILL BE DECIDED AFTER THE NEXT ELECTION WHICH HAS TO BE HELD BY NOVEMBER THE GOVERNOR SAID IN HIS REPORT THAT THE MOST SOLID CONTRIBUTION THAT MONETARY POLICY CAN MAKE TO A STRONG ECONOMY IS TO SEE TO IT THAT CANADIANS ARE PROVIDED WITH A MONEY THEY CAN TRUST CANADA HAS BEEN DOING BETTER ON INFLATION THAN FORECAST AND APPEARS TO BE ON TRACK TOWARD ITS EVENTUAL GOAL OF PRICE STABILITY HE SAID LAST YEAR THE CONSUMER PRICE INDEX SHOWED ITS SMALLEST RISE IN 30 YEARS AN INCREASE OF 15 THE DROP IN INFLATION HAS ALLOWED INTEREST RATES TO FALL TO THEIR LOWEST LEVELS IN DECADES THE PRIME LENDING RATE OF CANADIAN BANKS A BENCHMARK FOR VARIOUS LENDING CHARGES IS CURRENTLY 6 ITS LOWEST LEVEL IN 20 YEARS THE RATE FOR A VARIABLERATE MORTGAGE IS 575 A 35YEAR LOW MR CROW SAID CANADA'S ECONOMY NOW IN THE EIGHTH QUARTER OF A RECOVERY IS PERFECTLY CAPABLE OF EXPANDING TO HIGHER RATES OF PRODUCTION WITHOUT GENERATING INFLATION PRESSURES ONLY IF THE ECONOMY IS ALLOWED TO OVERHEAT WILL PROGRESS IN REDUCING INFLATION BE JEOPARDIZED RAVI BULCHANDANI SENIOR INTERNATIONAL ECONOMIST AT GOLDMAN SACHS INTERNATIONAL LTD SAID CANADA'S LOW INFLATION HAS ALLOWED THE BANK OF CANADA TO HELP THE RECOVERY BY BRINGING INTEREST RATES DOWN THINGS ARE LOOKING UP IN CANADA HE SAID WE THINK THAT THE ECONOMY IS IN THE EARLY STAGES OF A SUSTAINABLE RECOVERY SPOKESMEN FOR THE OPPOSITION LIBERAL AND NEW DEMOCRATIC PARTIES ATTACKED THE BANK OF CANADA'S RECORD ASSERTING THAT CANADA'S 19911992 RECESSION WAS DEEPER AND LONGER THAN NECESSARY BECAUSE OF THE CENTRAL BANK'S MONETARY RESTRAINTS HERB GRAY FINANCIAL SPOKESMAN FOR THE LIBERALS INDICATED THAT HE FAVORED WHAT HE DESCRIBED AS THE US FEDERAL RESERVE BOARD'S LESS RIGOROUS APPROACH TOWARD INFLATION HE SAID THAT WHILE THE US INFLATION RATE IN THE PAST YEAR WAS HIGHER THAN CANADA'S THE US UNEMPLOYMENT AND INTEREST RATES WERE SIGNIFICANTLY LOWER THAN IN CANADA THE CANADIAN UNEMPLOYMENT RATE IS 108 COMPARED WITH 7 IN THE US GOVERNOR CROW REJECTED CLAIMS THAT AT LEAST SOME DEGREE OF INFLATION WILL ENCOURAGE ECONOMIC GROWTH IN FACT AS INFLATION GETS BUILT IN IT IS A DRAG ON THE ABILITY OF THE ECONOMY TO SUSTAIN GROWTH NOT SOMETHING THAT SPURS GROWTH 9303240114 930324 HEALTHBENEFIT PLANS ARE LESS SECURE NOW A NEW REPORT FINDS WASHINGTON EMPLOYEE HEALTH BENEFITS ARE BECOMING LESS SECURE FOR AMERICANS PROTECTED BY THEM AND INCREASINGLY UNAVAILABLE OR UNAFFORDABLE FOR THOSE WHO NEED THEM MOST ACCORDING TO A REPORT FROM THE NATIONAL ACADEMY OF SCIENCES OTHER STUDIES HAVE REACHED SIMILAR CONCLUSIONS BUT THE NEW REPORT TAKES ON INCREASED IMPORTANCE BECAUSE IT COMES FROM A PRESTIGIOUS SOURCE AT A TIME WHEN THE CLINTON ADMINISTRATION IS PROPOSING VAST CHANGES IN THE HEALTHCARE SYSTEM ACCORDING TO THE STUDY BY A COMMITTEE OF THE ACADEMY'S INSTITUTE OF MEDICINE SPIRALING COSTS ARE PROMPTING EMPLOYERS TO CURB COVERAGE AND MEAGER REGULATION GIVES THEM VAST FREEDOM TO DO SO WITHOUT GOVERNMENT INTERVENTION THE REPORT SAYS THE SYSTEM OF VOLUNTARY EMPLOYMENTBASED HEALTH BENEFITS WILL SIGNIFICANTLY DETERIORATE AND EVEN COLLAPSE IN SOME SECTORS TO PREVENT SUCH A COLLAPSE THE REPORT CALLS FOR TIGHTER REGULATIONS TO BAR INSURANCE COMPANIES AND EMPLOYERS FROM DENYING COVERAGE TO HIGHRISK GROUPS AND WORKERS AND FROM SETTING INDIVIDUALS' PREMIUMS BASED ON CURRENT OR EXPECTED HEALTH STATUS THE COMMITTEE ALSO PROPOSES PUBLIC SUBSIDIES TO OFFSET INCREASES IN EXPENSES AS RISKS ARE MORE FAIRLY DISTRIBUTED BUT SOME ON THE COMMITTEE BELIEVE THAT SUCH CHANGES WILL NOT BE ENOUGH THEY ARGUE THAT IT WILL BE NECESSARY TO REQUIRE AND SUBSIDIZE COVERAGE FROM SMALLER COMPANIES WHERE THE US'S JOB GROWTH IS OCCURRING AND WHERE MANY OF AMERICA'S 36 MILLION UNINSURED WORK THE CLINTON PLAN IS LIKELY TO INCLUDE PROPOSALS ALONG THESE LINES INCLUDING A REQUIREMENT THAT ALL EMPLOYERS CONTRIBUTE TO THE COST OF HEALTH CARE 9303240113 930324 BUSINESS BRIEF AVON PRODUCTS INC FIRM LOSES ARBITRATION CASE TO TAKE 1STQUARTER CHARGE AVON PRODUCTS INC SAID IT HAS BEEN ORDERED IN A CALIFORNIA ARBITRATION PROCEEDING TO PAY 204 MILLION TO THE FORMER CHIEF EXECUTIVE AND MINORITY SHAREHOLDER OF RETIREMENT INNS OF AMERICA A HEALTHCARE UNIT SOLD BY AVON IN 1988 AND 1989 THE MAKER OF BEAUTYCARE PRODUCTS SAID IT EXPECTS TO REPORT A FIRSTQUARTER CHARGE OF ABOUT 14 CENTS A SHARE RELATED TO THE AWARD AND CONSEQUENTLY DOESN'T EXPECT TO MEET ITS HOPEDFOR 10 TO 12 GROWTH IN EARNINGS FOR THE QUARTER AVON ADDED THAT THE AWARD DOESN'T INCLUDE PUNITIVE DAMAGES WHICH COULD BE ANNOUNCED LATER IN THE FIRST QUARTER OF 1992 AVON HAD A NET LOSS OF 421 MILLION OR 59 CENTS A SHARE AFTER A 644 MILLION RESTRUCTURING CHARGE AVON SAID THE DISPUTE AROSE OUT OF ITS DIVESTITURE OF RETIREMENT INNS WHICH WAS THEN HEADED BY JEFFREY H TAMKIN AVON SAID IT BELIEVES THE AWARD ISN'T JUSTIFIED AND IS REVIEWING ITS OPTIONS 9303240112 930324 S&P LOWERS RATINGS ON SOME SWEDISH DEBT NEW YORK STANDARD & POOR'S CORP LOWERED ITS RATINGS ON SWEDEN'S SENIOR LONGTERM FOREIGNCURRENCY DEBT AND SOME SWEDISH PUBLIC SECTOR ENTITIES CITING THE KINGDOM'S FISCAL PROBLEMS ABOUT 14 BILLION OF FOREIGNCURRENCY DEBT IS AFFECTED AND 168 BILLION OF PUBLIC AGENCY DEBT IS AFFECTED S&P SAID THE SENIOR FOREIGNCURRENCY DEBT RATING WAS LOWERED TO DOUBLEAPLUS FROM TRIPLEA DEBTISSUING AGENCIES INCLUDE SWEDISH EXPORT CREDIT CORP AND SWEDISH NATIONAL HOUSING FINANCE CORP THEIR SENIOR AND SUBORDINATED LONGTERM RATINGS WERE LOWERED BUT SOME OTHER SHORTTERM AND LOCALCURRENCY DEBT RATINGS WERE AFFIRMED S&P SAID THE KINGDOM'S DOWNGRADE REFLECTS THE DIFFICULTY IN CORRECTING LARGE BUDGET DEFICITS DESPITE RECENT DEFICITCUTTING MEASURES BY THE GOVERNMENT THE RATING ALSO TAKES INTO ACCOUNT THE RISK THAT FISCAL ADJUSTMENT IN THE MEDIUM TERM MAY BE HINDERED BY A SLOW AND UNCERTAIN ECONOMIC RECOVERY S&P CITED CONTINUED PROBLEMS IN SWEDEN'S BANKING INDUSTRY AS A POSSIBLE DRAG ON RECOVERY ON THE OTHER HAND S&P NOTED THE COUNTRY'S DEBT STILL CARRIES A HIGH RATING SUPPORTED BY A HIGHLY DIVERSIFIED INDUSTRIAL ECONOMY AND A GOVERNMENT FISCAL PROGRAM THAT AIMS TO ERASE THE DEFICIT BY 1998 PUBLIC SECTOR REFORMS AND DEREGULATION OF PREVIOUSLY PROTECTED SECTORS SHOULD IMPROVE THE NATION'S PRODUCTIVITY S&P SAID 9303240111 930324 DO YOU KNOW THESE PEOPLE THE FIRST LADIES TASK FORCE ON HEALTH CARE REFORM REMEMBER KREMLINOLOGY AND SINOLOGY BACK IN THE DAYS OF THE SOVIET UNION AND MAO'S CHINA TO FIND OUT WHO WAS RUNNING THINGS IN THOSE COUNTRIES WESTERN EXPERTS WOULD PORE OVER PHOTOGRAPHS OF GOVERNMENT FUNCTIONS CHECKING OUT WHICH OFFICIALS WERE PRESENT ELABORATE THEORIES ABOUT POLITICAL POWER IN MOSCOW OR BEIJING WERE BUILT ON THE BASIS OF WHICH OFFICIAL WAS STANDING NEXT TO BREZHNEV AT THE MAY DAY PARADE OR WHICH GENERAL WAS NOW BEING AIRBRUSHED OUT OF EARLIER PHOTOS OF MAO ON THE GREAT MARCH IN WASHINGTON IN 1993 THINGS AREN'T THAT EASY AT LEAST NOT SO FAR AS HILLARY RODHAM CLINTON'S TASK FORCE ON HEALTH CARE REFORM IS CONCERNED THE WHITE HOUSE HASN'T RELEASED ANY PHOTOGRAPHS OF THE 500PLUS PEOPLE WHO ARE NOW DRAFTING A PLAN TO REDO THE NATION'S HEALTH CARE SYSTEM IN FACT IT WON'T EVEN RELEASE THEIR NAMES THESE ANONYMOUS MEN AND WOMEN TOIL IN SECRET DEVISING A REFORM PLAN THAT WILL AFFECT EVERY SINGLE AMERICAN AND IS LIKELY TO BE THE LARGEST AND MOST EXPENSIVE DOMESTIC PROGRAM SINCE THE NEW DEAL WHO ARE THEY THE WALL STREET JOURNAL HAS OBTAINED A LIST OF 528 MEN AND WOMEN ON THE TASK FORCE ALTHOUGH SOME SPELLINGS DIFFER AND NAMES ARE SOMETIMES REPEATED IT APPEARS TO BE THE SAME LIST THAT WAS OBTAINED BY REP GERALD SOLOMON R NY WHO ENTERED IT INTO THE CONGRESSIONAL RECORD THURSDAY BOB BOORSTIN A TASK FORCE SPOKESMAN AND WHOSE NAME IS ON THE LIST TOLD US YESTERDAY THAT IT'S AN INCORRECT LIST THOUGH HE CONCEDED THAT IT'S NOT ALL FALSE THERE ARE MORE THAN 500 PEOPLE ON MORE THAN 30 WORKING GROUPS HE SAID WHICH CHANGE AND GROW EVERY DAY WE RECOGNIZE SOME OF THE NAMES OF THE LIST TIPPER GORE PRINCETON HEALTHCARE EXPERTS PAUL STARR AND UWE REINHARDT SOME GOVERNMENT STAFFERS BUT WE ASK YOUR HELP DEAR READER IN IDENTIFYING THE REST IF YOU THINK YOU KNOW WHO SOMEONE IS PLEASE FAX US AT 212 4162658 ADDRESS IT KREMLINOLOGISTS WE'LL LET YOU KNOW NEXT WEEK WHAT WE FIND OUT 9303240110 930324 CLINTON EXEMPTS METHANOL ETHANOL FROM ENERGY TAX WASHINGTON THE CLINTON ADMINISTRATION MOVING TO SHORE UP SUPPORT FOR ITS ECONOMIC PACKAGE AMONG WAVERING LAWMAKERS ANNOUNCED IT WOULD EXEMPT ETHANOL AND METHANOL FROM ITS PROPOSED ENERGY TAX TREASURY SECRETARY LLOYD BENTSEN DISCLOSED THE DECISION IN A LETTER TO SEN PAUL WELLSTONE SHORTLY BEFORE THE SENATE VOTED ON THE MINNESOTA DEMOCRAT'S RESOLUTION URGING THE TREASURY TO EXEMPT ETHANOL AND CERTAIN OTHER NONCONVENTIONAL FUELS MR WELLSTONE'S PROPOSED AMENDMENT WAS DEFEATED 5248 AGRICULTURAL INTERESTS AND FARMSTATE LAWMAKERS HAVE TRIED TO HAVE CORNBASED ETHANOL EXCLUDED FROM THE ENERGY TAX SINCE MR CLINTON UNVEILED HIS PROGRAM ARGUING THAT IT WAS A BIOMASS FUEL OF THE SORT THE ADMINISTRATION HAD PLEDGED TO EXEMPT METHANOL INDUSTRY LOBBYIST ROGER MENTZ SAID MR BENTSEN'S LETTER WAS A MAJOR BREAKTHROUGH BECAUSE IT SEEMS TO BE THE FIRST INSTANCE WHERE ETHANOL AND METHANOL ARE BEING TREATED THE SAME REPORTS THAT ETHANOL WOULD BE EXEMPTED FROM THE TAX HAD LED TO FEVERISH LOBBYING BY METHANOL INDUSTRY OFFICIALS IN THE END MR BENTSEN EXEMPTED BOTH METHANOL AND MTBE A METHANOLDERIVED GASOLINE ADDITIVE THAT HELPS FUEL TO BURN CLEANER MTBE HAS BEEN A SOURCE OF CONTROVERSY LATELY BECAUSE OF REPORTS THAT THE FUEL WITH THE ADDITIVE HAS CAUSED NAUSEA AMONG SOME MOTORISTS IN ALASKA 9303240109 930324 WORLD MARKETS STOCKS SLIDE IN LONDON FRANKFURT AND TOKYO AMID CONTINUED POLITICAL TURMOIL IN RUSSIA A WALL STREET JOURNAL NEWS ROUNDUP STOCKS IN LONDON AND FRANKFURT CONTINUED THEIR DECLINES TUESDAY AS THE GENERAL MARKET MOOD REMAINED ONE OF UNCERTAINTY BECAUSE OF THE POLITICAL TURMOIL IN RUSSIA IN PARIS AND ZURICH STOCKS REBOUNDED MODESTLY WHILE IN MILAN SHARE PRICES WERE PROPELLED HIGHER LARGELY BY AUTOMAKER FIAT'S GAINS IN TOKYO THE TURBULENCE IN RUSSIA AND A RESURGENT YEN TRIGGERED PROFITTAKING THUMPING THE NIKKEI 225STOCK INDEX BACK BELOW 18500 POINTS A PSYCHOLOGICALLY KEY LINE THE NIKKEI SLID 29277 POINTS TO 1849162 AFTER A 24722POINT CLIMB MONDAY ON WEDNESDAY THE NIKKEI ROSE 9080 POINTS TO CLOSE THE MORNING SESSION AT 1858242 ON TUESDAY INVESTORS OPTED TO TAKE PROFITS AFTER A HALFMONTH RALLY THAT HAS BALLOONED THE NIKKEI SOME 12 MARKET PLAYERS SAID THE INDEX REGAINED THE 18500 LEVEL FOR THE FIRST TIME ALL FISCAL YEAR LAST THURSDAY IT'S QUITE NATURAL TO SEE A CONSOLIDATION SAID KATHY MATSUI A STRATEGIST AT BARCLAYS DE ZOETTE WEDD SECURITIES JAPAN LTD AND I WOULDN'T BE SURPRISED TO SEE A COUPLE DAYS OF THIS BUT SHE SAID SUPPORT ISN'T FAR BELOW AS BUYERS ARE WAITING TO PLACE ORDERS THE RUSSIAN PICTURE DARKENED LATE TUESDAY WITH CABLE NEWS NETWORK REPORTING BEFORE THE MARKET CLOSE THAT THE CONSTITUTIONAL COURT WILL RULE AS UNCONSTITUTIONAL PRESIDENT BORIS YELTSIN'S DECLARATION OF EMERGENCY RULE THAT WOULD SET THE STAGE FOR THE STANDING LEGISLATURE TO MOVE AHEAD WITH IMPEACHMENT PROCEEDINGS TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 370 MILLION SHARES UP FROM 33061 MILLION SHARES MONDAY LOSING ISSUES OUTNUMBERED GAINING ISSUES 732 TO 300 WHILE 138 ISSUES WERE UNCHANGED THE JAPANESE CURRENCY HIT A NEW ALLTIME HIGH OF 11523 YEN TO THE DOLLAR LATE IN THE TOKYO AFTERNOON IT ENDED AT 11533 YEN PER DOLLAR THE TOKYO STOCK PRICE INDEX OF ALL FIRSTSECTION ISSUES WHICH ADDED 701 POINTS MONDAY LOST 1579 POINTS OR 112 TO 139791 IN LONDON STOCKS EASED NARROWLY ON CAUTION ABOUT RUSSIAN POLITICS WEAK FOREIGN MARKETS AND THE ABSENCE OF FRESH ECONOMIC INDICATORS AT HOME THE BENCHMARK FINANCIAL TIMESSTOCK EXCHANGE 100STOCK INDEX CLOSED WITH A LOSS OF 280 POINTS TO 28611 ADDING TO MONDAY'S DROP OF 362 POINTS DECLINERS OUTNUMBERED ADVANCERS 60 TO 34 WITH SIX ISSUES UNCHANGED THE FTSE 30STOCK INDEX LOST 43 POINTS TO END AT 22382 VOLUME WAS 7017 MILLION SHARES UP FROM 5292 MILLION MONDAY TRADERS SAID IT WAS TOUGH TO IDENTIFY A KEY FEATURE OF THE SESSION BEYOND A GROWING WAITANDSEE ATTITUDE THAT APPEARS TO BE DAMPING ENTHUSIASM AT CURRENT LEVELS PEOPLE ARE HOLDING BACK UNTIL THEY CAN SEE A LITTLE MORE CLEARLY AND ARE ASKING FOR MORE OF AN INSURANCE PREMIUM IN TERMS OF LOWER PRICES A STRATEGIST AT A BIG UK FIRM SUGGESTED HE ADDED THAT SOME MEDIUMTERM INVESTORS SEEM TO BE TAKING PROFITS ON THE IDEA THAT THE FTSE 100 IS STILL AT THE TOP END OF A BROAD TRADING RANGE AND COULD GO LOWER BEFORE RECOVERING ADDITIONALLY HE SUGGESTED DEMAND COULD STAY TEPID UNTIL ECONOMIC INDICATORS POINT MORE RESOLUTELY UPWARD THE UP SIDE FROM HERE IS FAIRLY LIMITED IN THE UK UNTIL WE SEE A FEW DECENT CONCRETE SIGNS OF RECOVERY HE SAID FRANKFURT SHARE PRICES INITIALLY OPENED WEAKER BUT THEN RECOVERED ON SHORTCOVERING FOLLOWING MONDAY'S PLUNGE BUT FURTHER SIGNS OF POLITICAL INSTABILITY IN RUSSIA NIPPED THE RECOVERY IN THE BUD AND SHARE PRICES CLOSED NEAR THEIR INTRADAY LOWS THE DAX 30STOCK INDEX FELL 1296 POINTS TO 164844 POINTS AFTER LOSING 3741 POINTS MONDAY THE MARKET'S PERFORMANCE TUESDAY OPENS THE POSSIBILITY OF FURTHER LOSSES ON TECHNICAL CONSIDERATIONS BROKERS SAID THE 1660 LEVEL OF THE DAX HAS BEEN VIEWED AS A CRUCIAL SUPPORT POINT FOR THE MARKET THE NEXT SUPPORT POINTS FOR THE MARKET ARE IN THE RANGE OF 1640 TO 1645 AND ALSO 1620 BROKERS SAID IN MILAN STOCKS GOT A BOOST FROM FIAT SPA WHICH JUMPED 300 LIRE OR 56 TO SETTLE AT 5700 LIRE AND THEN SOARED TO 5810 LIRE 367 IN AFTERHOURS BUSINESS TRADERS SAID RUMORS OF AN INTERNATIONAL ACCORD THIS TIME WITH A GERMAN COMPANY WERE BEHIND THE SHARE'S SHARP RISE BUT SEVERAL TRADERS DISCOUNTED THE RUMORS AND SAID BUYING WAS BASED ON A POSITIVE FUNDAMENTAL ANALYSIS OF FIAT PARTICULARLY BY US INSTITUTIONAL INVESTORS FIAT'S PERFORMANCE FILTERED THROUGH TO OTHER SHARES IN THE GROUP AND FROM THERE TO THE REST OF THE MARKET TRADERS SAID IN SYDNEY AUSTRALIAN STOCKS TURNED UP TUESDAY AFTERNOON BUT THE RALLY COULDN'T ERASE LOSSES SUFFERED EARLY IN THE DAY THE ALLORDINARIES INDEX OF SHARE PRICES CLOSED AT 16595 UP FROM THE DAY'S LOW OF 16485 BUT STILL DOWN 48 POINTS FROM 16643 MONDAY JUST BEFORE STOCK TRADING STARTED THE RESERVE BANK OF AUSTRALIA CUT ITS CASH INTEREST RATE TO 525 FROM 575 A RATE REDUCTION WAS EAGERLY ANTICIPATED BY INVESTORS BUT SOME WERE DISAPPOINTED IT WASN'T A BIGGER CUT STOCK PRICES RETREATED AS A RESULT OF WEAKNESS IN THE LONDON AND NEW YORK MARKETS AND BECAUSE OF THE HALFPOINT RATE CUT IN CORPORATE DEVELOPMENTS GERMAN CHEMICAL GIANT HOECHST AG PREDICTED A FURTHER DECLINE IN EARNINGS IN THE FIRST HALF OF 1993 CAUSING ITS SHARE PRICE TO CLOSE AT 24640 MARKS 15043 DOWN 080 MARK IN FRANKFURT TRADING BROKERS NOTED THE NEWS WASN'T SURPRISING AND THAT THE SHARES HAVE ALREADY BEEN UNDER PRESSURE OVER THE PAST FEW WEEKS BECAUSE OF A STRING OF ACCIDENTS AT HOECHST PLANTS IN LONDON UK PACKAGING GROUP BOWATER PLC SAID PRETAX PROFIT ROSE 49 IN 1992 BUT ITS SHARE PRICE WAS UNCHANGED AT 490 72863 AS THE NEWS WAS IN LINE WITH THE FORECAST THE COMPANY MADE LAST MONTH PRETAX PROFIT WAS 1472 MILLION 2189 MILLION UP FROM 99 MILLION A YEAR AGO BRITISH TELEVISION AND LEISURE COMPANY GRANADA GROUP PLC TOPPED THE DAY'S LIST OF KEY GAINS ADDING 20 PENCE OR 55 TO 385 PENCE 572 AFTER ANNOUNCING THAT IT BOUGHT THE SUTCLIFFE GROUP FROM PENINSULAR & ORIENTAL STEAM NAVIGATION CO FOR 360 MILLION 5353 MILLION SUTCLIFFE OWNS ITS NAMESAKE CONTRACT CATERING BUSINESS WHICH IS THE THIRD LARGEST IN THE UK AND SPRING GROVE A UK LINEN AND WORKWEAR COMPANY P&O WHICH ALSO REPORTED A 16 RISE IN 1992 PRETAX PROFIT TO 2704 MILLION FINISHED TWO PENCE HIGHER AT 603 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 BOWATER PLC STOCK CLOSED AT 490 PENCE 729 TUESDAY IN LONDON TRADING IN YESTERDAY'S WORLD MARKETS COLUMN THE CLOSING QUOTE WAS MISSTATED AS 490 9303240108 930324 TECHNOLOGY & MEDICINE SYNERGEN'S BLOOD INFECTION DRUG TO GET SECOND TRIAL TO ESTABLISH EFFECTIVENESS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SYNERGEN INC SAID IT WILL CONDUCT A SECOND MAJOR TRIAL OF ITS ANTRIL DRUG FOR BLOOD POISONING AFTER THE FIRST TRIAL FAILED TO SHOW CLEARCUT EVIDENCE THAT THE DRUG REDUCES DEATHS FROM THE OFTEN FATAL BLOOD INFECTION THE DECISION IS EXPECTED TO DELAY BY AT LEAST A YEAR THE BIOTECHNOLOGY COMPANY'S PLANS TO SEEK MARKETING APPROVAL FOR ANTRIL IN THE US BUT SYNERGEN BOULDER COLO SAID IT WILL APPLY FOR MARKETING LICENSES IN EUROPE LATER THIS YEAR BASED ON RESULTS FROM THE FIRST STUDY INVESTORS GAVE THE NEWS A CHILLY RECEPTION SYNERGEN'S SHARES FELL 13 OR 175 TO 11375 IN LATE NATIONAL OVERTHECOUNTER TRADING YESTERDAY AFTER RISING 1 IN MONDAY'S TRADING LAST MONTH WHEN THE COMPANY FIRST DISCLOSED THE DISAPPOINTING RESULTS ITS SHARES PLUMMETED 68 THE ANNOUNCEMENTS CAME DURING AN ELABORATE BRIEFING HERE BY ANTRIL EXECUTIVES FOR ANALYSTS AND JOURNALISTS THE BRIEFING INCLUDED A TELECAST VIA SATELLITE OF A SCIENTIST PRESENTING DETAILED RESULTS FROM THE FIRST STUDY TO A SCIENTIFIC CONFERENCE IN BRUSSELS IN PRESENTING THOSE FINDINGS CHARLES J FISHER THE PRINCIPAL INVESTIGATOR FOR THE 893PATIENT STUDY CONFIRMED SYNERGEN'S DISCLOSURE LAST MONTH THAT WHILE ANTRIL REDUCED DEATH RATES FROM SEPSIS SYNDROME BY ABOUT 15 COMPARED WITH PATIENTS RECEIVING AN INEFFECTIVE PLACEBO THE DIFFERENCE FAILED TO ACHIEVE STATISTISCAL SIGNIFICANCE BUT DR FISHER A CLINICIAN AND RESEARCHER AT CLEVELAND CLINIC AND CASE WESTERN RESERVE UNIVERSITY CLEVELAND SAID THE STUDY INDICATED ANTRIL IS EFFECTIVE IN REDUCING DEATH AMONG A SUBGROUP OF PATIENTS IN MORE SEVERE STAGES OF SEPSIS SYNDROME THERE IS A GROUP OF PATIENTS THAT CONSISTENTLY AND PREDICTABLY SHOW A STRONG TREATMENT EFFECT DR FISHER SAID HE SAID A SOFTWARE SYSTEM USED DURING THE STUDY TO PREDICT RISK OF DEATH COULD BE USED BY DOCTORS IN THE FUTURE TO DETERMINE WHICH PATIENTS WOULD BE MOST LIKELY TO BENEFIT FROM THE DRUG THE PATIENTS WHO FIT INTO THE SUBGROUP COULD ACCOUNT FOR ONETHIRD TO TWOTHIRDS OF THE 400000 TO 500000 ANNUAL SEPSIS PATIENTS IN THE US DR FISHER SAID A SIMILAR NUMBER ARE AFFLICTED IN EUROPE IN DESIGNING A NEW TRIAL SYNERGEN IS EXPECTED TO FOCUS ON THIS SUBGROUP OF SICKER PATIENTS HOPING THE DRUG'S LIFESAVING EFFECTS WILL STAND OUT MORE CLEARLY IN COMPARISON WITH THOSE SEPSIS PATIENTS NOT RECEIVING THE DRUG WE ARE CONFIDENT THAT THERE IS A HIGH LIKELIHOOD OF SUCCESS IN DEMONSTRATING A SIGNIFICANT TREATMENT BENEFIT AMONG SUCH PATIENTS SAID MICHAEL CATALANO SYNERGEN'S VICE PRESIDENT FOR CLINICAL RESEARCH A MAJOR REASON FOR THE RELATIVELY POOR RESULTS FROM THE FIRST TRIAL IS THAT THE DEATH RATE AMONG PATIENTS GIVEN A PLACEBO OR DUMMY DRUG WAS 34 MUCH LOWER THAN THE 40 RESEARCHERS EXPECTED RESEARCHERS WERE AT A LOSS TO EXPLAIN THE REASON BUT WHEN THE RESEARCHERS LIMITED THE ANALYSIS TO A SUBGROUP OF 595 PATIENTS THOSE GIVEN HIGH DOSES OF ANTRIL HAD A DEATH RATE OF 35 COMPARED WITH 45 IN THE PLACEBO GROUP A REDUCTION OF 22 THOSE RESULTS WERE CONSIDERED STATISTICALLY SIGNIFICANT DR FISHER SAID THE RESEARCHERS ALSO FOUND THAT A SOFTWARE PROGRAM KNOWN AS APACHE DEVELOPED BY DR WILLIAM A KNAUS AT GEORGE WASHINGTON UNIVERSITY MEDICAL CENTER MAKES IT POSSIBLE TO PREDICT THE RISK OF DEATH OF INDIVIDUAL PATIENTS COMPANY OFFICIALS SUGGESTED THE SYSTEM WOULD BE USED TO ENROLL PATIENTS IN THE NEXT TRIAL IN AN EFFORT TO MAKE SURE PARTICIPANTS IN THE TRIAL WERE LIKELY TO BENEFIT FROM THE DRUG DR FISHER SAID ABOUT ONETHIRD OF PATIENTS IN THE FIRST TRIAL HAD PREDICTED DEATH RATES OF 40 OR HIGHER AND WOULD BE CONSIDERED ESPECIALLY STRONG CANDIDATES FOR ANTRIL ANOTHER ONETHIRD HAD PREDICTED DEATH RATES OF 24 TO 40 AND MIGHT BE GOOD CANDIDATES AS WELL ANALYSTS SAID THAT IN DESIGNING THE NEW TRIAL SYNERGEN HAS TO WEIGH THE TRADEOFFS BETWEEN SELECTING STRONG CANDIDATES TO GET CLEARCUT RESULTS AND MARKETING APPROVAL FOR A SMALLER SHARE OF SEPSIS PATIENTS OR SEEK WIDER USE OF THE DRUG AT THE RISK OF GETTING AMBIGUOUS RESULTS 9303240107 930324 INTERNATIONAL CLINTON BACKS YELTSIN VOWS SPECIFIC PLAN' BY CARLA ANNE ROBBINS AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DECLARING THAT RUSSIA IS AND MUST REMAIN A DEMOCRACY PRESIDENT CLINTON GAVE HIS UNWAVERING SUPPORT TO BORIS YELTSIN AND PROMISED TO BRING TO THEIR SUMMIT MEETING AN AGGRESSIVE AND QUITE SPECIFIC PLAN TO AID RUSSIA AT HIS FIRST FORMAL NEWS CONFERENCE SINCE HIS INAUGURATION MR CLINTON CALLED THE RUSSIAN PRESIDENT'S DECISION TO GIVE HIMSELF EXTRAORDINARY POLITICAL POWERS AND CALL FOR A NATIONAL VOTE OF CONFIDENCE AN APPROPRIATE STEP IN A DEMOCRACY TO BREAK THE COUNTRY'S POLITICAL LOGJAM AND WHILE SAYING THAT THE US SUPPORTS ALL REFORMERS HE LEFT NO DOUBT THAT MR YELTSIN IS STILL WASHINGTON'S NO 1 CHOICE TO LEAD RUSSIA THE CONFRONTATION BETWEEN MR YELTSIN AND THE RUSSIAN PARLIAMENT HAS ONLY INCREASED THE ADMINISTRATION'S DESIRE AND SENSE OF URGENCY TO PROVIDE MR YELTSIN WITH SUBSTANTIAL ECONOMIC SUPPORT AT THE SUMMIT SCHEDULED FOR APRIL 34 IN VANCOUVER BRITISH COLUMBIA US OFFICIALS PRIVATELY CONCEDE THAT THE 700 MILLION IN AID THEY HAVE PROPOSED FOR RUSSIA NEXT YEAR IS MUCH LESS THAN THE COUNTRY NEEDS US OFFICIALS ARE SCRAMBLING FOR WAYS TO COME UP WITH MORE FUNDING AND HINT THEY MAY HAVE TO ASK CONGRESS FOR A SUPPLEMENTAL SPENDING BILL LATER THIS YEAR BUT THE ADMINISTRATION WOULD DO THAT ONLY IF EUROPE AND JAPAN ALSO PROVIDE FUNDS AN IDEA OFFICIALS WILL PUSH AT AN EXPECTED APRIL MINISTERIAL MEETING OF THE GROUP OF SEVEN INDUSTRIAL DEMOCRACIES THE ADMINISTRATION'S FIRST CHOICE IS STILL TO TAP THE SUBSTANTIAL RESOURCES OF THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK ONE NEW POSSIBILITY IS WHETHER RUSSIA MIGHT BORROW FROM THE IMF'S COMPENSATORY AND CONTINGENCY FINANCING FACILITY A FUND DESIGNED TO HELP COUNTRIES WEATHER TEMPORARY DISRUPTIONS OF THEIR EXPORTS OR OTHER UNUSUAL CIRCUMSTANCES UNDER EXISTING IMF RULES RUSSIA WOULD BE ELIGIBLE FOR BETWEEN 12 BILLION AND 2 BILLION FROM THIS FUND MORECONVENTIONAL LENDING FROM THE IMF HAS BEEN DIFFICULT BECAUSE RUSSIA HAS BEEN UNABLE TO MEET THE IMF'S MACROECONOMIC CRITERIA OF 45 BILLION COMMITTED TO RUSSIA BY THE IMF AND THE WORLD BANK LAST YEAR ONLY SLIGHTLY MORE THAN 1 BILLION HAS BEEN DISBURSED US OFFICIALS SAY THEY WILL ALSO PRESS THE IMF TO RELAX ITS LENDING CRITERIA OR TO BEGIN LENDING WHILE MOSCOW WORKS TO MEET THEM US OFFICIALS ARE ALSO CONSIDERING WHETHER THEY CAN TAKE MONEY FROM A 6 BILLION RUBLESTABILIZATION FUND AUTHORIZED LAST YEAR THERE ARE LEGAL IMPEDIMENTS TO SUCH A MOVE STILL ANOTHER IDEA WOULD BE FOR THE US TO HELP FINANCE THE REPAIR OF RUSSIAN OIL WELLS WITH FUTURE PURCHASES OF OIL FOR THE US STRATEGIC PETROLEUM RESERVE THE PRESIDENT SHRUGGED OFF THE SUGGESTION THAT HE RUNS A DANGER IN OVERIDENTIFYING WITH MR YELTSIN ESPECIALLY WHEN THERE ISN'T ANY GUARANTEE THAT THE RUSSIAN LEADER CAN SURVIVE THIS CRISIS IN THE PRESIDENTIAL CAMPAIGN MR CLINTON CRITICIZED PRESIDENT BUSH FOR HOLDING ON TO SOVIET PRESIDENT MIKHAIL GORBACHEV LONG AFTER MRGORBACHEV'S POLITICAL TIME HAD PASSED MR CLINTON SAID THE CURRENT SITUATION HOWEVER IS FAR DIFFERENT MR YELTSIN IS AFTER ALL THE FIRST ELECTED PRESIDENT IN A THOUSAND YEARS IN RUSSIA MR CLINTON SAID THERE STILL APPEARED TO BE CONFUSION OVER WHETHER RUSSIA WOULD ASK TO MOVE THE SUMMIT TO MOSCOW RUSSIAN DEPUTY PRIME MINISTER BORIS FYODOROV TOLD A MOSCOW NEWS CONFERENCE THAT THE SITE SHOULD BE CHANGED BECAUSE MR YELTSIN WOULD RUN A RISK BY LEAVING THE COUNTRY BUT AFTER MEETING WITH SECRETARY OF STATE WARREN CHRISTOPHER IN WASHINGTON RUSSIAN FOREIGN MINISTER ANDREI KOZYREV TOLD REPORTERS THERE WOULDN'T BE ANY CHANGE OF VENUE MR KOZYREV WHO WILL MEET WITH PRESIDENT CLINTON TODAY CAUTIONED REPORTERS NOT TO OVERDRAMATIZE THE DRAMATIC SITUATION IN RUSSIA BUT TOKYO IS HAVING A TOUGH TIME BALANCING THE DEMANDS OF ITS G7 ALLIES AND THE POLITICAL PASSIONS OF ITS PUBLIC MANY JAPANESE HAVEN'T SEEN A DIFFERENCE IN RUSSIA FROM THE COMMUNIST DAYS TO THE DAYS UNDER PRESIDENT YELTSIN SAID FOREIGN MINISTRY SPOKESMAN MASAMICHI HANABUSA WHO EMPHASIZED THAT THIS WASN'T THE GOVERNMENT'S POSITION 9303240106 930324 INDUSTRY FOCUS TWO INVESTOR GROUPS TO TAKE INSURANCE FIRMS PUBLIC CONSECO AND HICKS MUSE ARE POISED TO SEE INVESTMENTS SOAR IN VALUE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL ONLY TWO MONTHS AFTER KOHLBERG KRAVIS ROBERTS & CO TRIPLED THE VALUE OF ITS INVESTMENT IN AMERICAN RE CORP BY TAKING IT PUBLIC TWO OTHER INVESTOR GROUPS ARE POISED TO SEE THEIR INSURANCE COMPANY INVESTMENTS SOAR IN VALUE THE GAINS ARE EXPECTED TO COME FROM PUBLIC OFFERINGS FOR BANKERS LIFE HOLDING CORP BASED IN CHICAGO AND LIFE PARTNERS INC OF DENVER AT THEIR EXPECTED PRICES BOTH WOULD GIVE THEIR CURRENT OWNERS HUGE UNREALIZED PROFITS EVEN BIGGER ON A PERCENTAGE BASIS THAN KKR ENJOYED THE TRANSACTION FOR AMERICAN RE A PRINCETON NJ PROPERTY AND CASUALTY REINSURER VALUED KKR'S INVESTMENT AT ABOUT 1 BILLION OR THREE TIMES THE AMOUNT IT PUT UP FOR THE COMPANY ONLY 12 WEEKS BEFORE IN THE BANKERS LIFE TRANSACTION THE ORIGINAL EQUITY INVESTMENT MADE ONLY FIVE MONTHS AGO BY CONSECO INC AN INSURANCE COMPANY AND OTHER INVESTORS COULD RISE IN VALUE TO 735 MILLION OR NEARLY NINE TIMES THEIR ORIGINAL INVESTMENT AND IN THE CASE OF LIFE PARTNERS AN INVESTOR GROUP LED BY HICKS MUSE & CO A DALLAS LEVERAGED BUYOUT COMPANY COULD SEE ITS STAKE JUMP IN VALUE TO 225 MILLION OR NEARLY SEVEN TIMES ITS ORIGINAL INVESTMENT THE CHANCE TO TAKE THE COMPANIES PUBLIC STEMS FROM RENEWED INVESTOR INTEREST IN THE INSURANCE INDUSTRY PROPERTY AND CASUALTY STOCKS HAVE RISEN SINCE AUGUST ON INVESTOR BELIEF THAT HURRICANE ANDREW LOSSES WILL FORCE INSURERS TO RAISE PRICES TO RECOVER LOSSES THUS BECOMING MORE PROFITABLE AND VALUES OF LIFE INSURANCE COMPANIES ARE CLIMBING BECAUSE OF FALLING INTEREST RATES AND A RECOVERY OF INVESTOR CONFIDENCE WHICH ERODED FOLLOWING THE COLLAPSE OF MUTUAL BENEFIT LIFE INSURANCE CO AND OTHERS IN 1991 THE LIFE GROUP HAS CERTAINLY REBOUNDED SAID WILLIAM BITTERLI AN ANALYST WITH NORTHINGTON PARTNERS IN AVON CONN ADDS GARY PARR AN INVESTMENT BANKER WITH WASSERSTEIN PERELLA & CO THERE HAS BEEN A BIG CHANGE IN VALUATION IN THE MARKETPLACE THE BANKERS LIFE AND LIFE PARTNERS TRANSACTIONS ARE SCHEDULED TO COME TO MARKET WITHIN DAYS ASSUMING THEY SUCCEED WHICH ANALYSTS SAY IS LIKELY THE TRANSACTIONS COULD SPUR OTHER PUBLIC OFFERINGS OF INSURANCE COMPANIES YOU WILL SEE MORE DEALS SAID CHARLES RONSON AN ANALYST WITH BALESTRA CAPITAL AND PUBLISHER OF IPO VALUE MONITOR A NEWSLETTER CONSECO INC BASED IN CARMEL IND BOUGHT BANKERS LIFE IN NOVEMBER FOR 600 MILLION IN A LEVERAGED BUYOUT MOST OF THE TRANSACTION INVOLVED DEBT BUT AN ADDITIONAL 866 MILLION WAS RAISED BY SELLING COMMON STOCK TO CONSECO AND ITS PARTNERS THE PUBLIC OFFERING CALLS FOR SELLING 15 MILLION SHARES FOR ABOUT 21 A SHARE WHICH WOULD GIVE THE PUBLIC 30 OF THE STOCK AT THAT PRICE THE PLAN WOULD RAISE 315 MILLION WHICH WOULD BE USED TO RETIRE PREFERRED STOCK AND DEBT CONSECO AND ITS PARTNERS WOULD RETAIN 70 MEANING IT WOULD HAVE A 648 MILLION PAPER PROFIT LIFE PARTNERS ALSO INVOLVED A LEVERAGED BUYOUT THREE YEARS AGO AN INVESTOR GROUP LED BY HICKS MUSE BOUGHT LIFE PARTNERS FOR 495 MILLION OF THAT AMOUNT HICKS MUSE AND OTHER INVESTORS PAID 33 MILLION FOR THE COMMON STOCK AFTER SELLING 114 MILLION SHARES OR 43 OF THE AMOUNT OUTSTANDING TO THE PUBLIC AT AN ESTIMATED PRICE OF 15 A SHARE THE INVESTORS WILL RETAIN STOCK VALUED AT AN ESTIMATED 225 MILLION MOST OF THE 171 MILLION RAISED IN THE OFFERING WILL BE USED TO RETIRE PREFERRED STOCK AND DEBT THE LIFE PARTNERS OFFERING ASSUMING IT GOES THROUGH AS EXPECTED WOULD REPRESENT A POTENTIAL WINDFALL NOT ONLY FOR HICKS MUSE BUT FOR GENERAL ELECTRIC CO'S INVESTMENT ARM GE CAPITAL WHICH RECEIVED WARRANTS IN THE COMPANY IN EXCHANGE FOR PUTTING UP MOST OF THE DEBT USED TO FINANCE THE ACQUISITION ANOTHER WINNER WOULD BE LIFE PARTNERS' MANAGEMENT LED BY ITS CHAIRMAN GENE BISHOP MR BISHOP WAS CHAIRMAN OF MCORP A BIG DALLAS BANKING HOLDING COMPANY WHOSE LEAD BANKS FAILED DURING THE TEXAS BANKING CRISIS OF THE LATE 1980S THE FAILURE WAS THE SECOND BIGGEST IN US BANKING HISTORY COSTING THE FEDERAL DEPOSIT INSURANCE CORP 29 BILLION ANOTHER COMMON ELEMENT OF THE TWO PLANS IS THE ORIGINAL SELLER BOTH BANKERS LIFE AND LIFE PARTNERS WERE BOUGHT FROM ICH CORP A LOUISVILLE KY HOLDING COMPANY THAT WAS DEEPLY IN DEBT AND HAS INCURRED HUGE LOSSES ON INVESTMENTS IN FIRST EXECUTIVE CORP SOUTHMARK CORP AND INTEGRATED RESOURCES CORP EACH OF WHICH WOUND UP IN BANKRUPTCYPROCEEDINGS ANALYSTS SAY ICH WAS HARDLY IN A POSITION TO BE A HARDNOSED BARGAINER BUT BUYING CHEAPLY ISN'T THE ONLY REASON BANKERS LIFE AND LIFE PARTNERS HAVE APPRECIATED IN VALUE CONSECO IS WORKING TO CUT EXPENSES AND INCREASE THE YIELD ON THE INVESTMENT PORTFOLIO IN THE CASE OF LIFE PARTNERS THE NEW OWNERS EXPANDED THE SALES EFFORT PAID DOWN DEBT AND USED INNOVATIVE WAYS TO GET CUSTOMERS TO RENEW THEIR INSURANCE POLICIES SUCH AS MAKING ITS BEST INSURANCE AGENTS PARTNERS IN THE COMPANY HENCE THE NAME LIFE PARTNERS INVESTMENT BANKERS SAY THAT IN ADDITION TO SEEING BUYOUT CONCERNS TAKING COMPANIES PUBLIC THEY ARE ALSO SEEING INSURANCE COMPANIES TAKING SUBSIDIARIES PUBLIC BECAUSE OF THE FAVORABLE MARKET HIGH QUALITY COMPANIES CAN BE DIVESTED AT ATTRACTIVE PRICES SAID RALPH WATTS A MANAGING DIRECTOR FOR SMITH BARNEY HARRIS UPHAM & CO AN EXAMPLE CAME LAST WEEK WHEN HANOVER INSURANCE CO OF WORCHESTER MASS TOOK PUBLIC CITIZENS CORP A PROPERTY AND CASUALTY UNIT THE TRANSACTION WAS EXPECTED TO SELL FOR 21 TO 23 A SHARE BUT ENDED UP COMING OUT AT 24 A SHARE SEARS ROEBUCK & CO HOPES TO BE AS FORTUNATE THE CHICAGO RETAILER IS GETTING READY TO TAKE PUBLIC ALLSTATE CORP THE HOLDING COMPANY OF ALLSTATE INSURANCE CO THE PLAN IF IT SUCCEEDS WOULD RAISE ABOUT 1 BILLION AND BE THE LARGEST INITIAL PUBLIC OFFERING EVER PERHAPS THE BIGGEST INDICATION OF HOW MUCH MARKET SENTIMENT HAS TURNED IN REGARDS TO INSURERS CAN BEEN SEEN IN THE RECENT STOCK PERFORMANCE OF EQUITABLE COS THE HUGE NEW YORK LIFE INSURER THE COMPANY STRUGGLED TO GO PUBLIC LAST JULY AND EVENTUALLY SOLD AT 9 A SHARE A DEEP DISCOUNT TO ITS BOOK VALUE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY EQUITABLE CLOSED AT 21125 A SHARE UP 125 CENTS INSURANCE STOCKS AS A GROUP ARE RACKING UP IMPRESSIVE GAINS WHILE THE S&P 500 INDEX HAS RISEN 10 OVER THE PAST 52 WEEKS LIFE INSURANCE COMPANIES ARE UP 44 AND PROPERTY AND CASUALTY STOCKS ARE UP 43 DURING THE SAME PERIOD ACCORDING TO CONNING & CO A HARTFORD CONN BROKERAGE COMPANY THE AMERICAN RE OFFERING HELPED SPUR THE MARKET FOR PROPERTY AND CASUALTY INSURANCE COMPANIES ANALYSTS SAY THAT THE BANKERS LIFE TRANSACTION WHICH POTENTIALLY PROVIDES AN EVEN GREATER RETURN FOR THE INVESTORS WHO ARE BRINGING IT PUBLIC COULD HAVE THE SAME EFFECT ON THE LIFE INSURANCE INDUSTRY THE INDUSTRY IS LEARNING YOU CAN ACTUALLY SELL A LIFE STOCK TO THE PUBLIC MR RONSON SAID 9303240105 930324 BUSINESS BRIEF PLYGEM INDUSTRIES INC HOOVER UNIT LOSES VERDICT BY FEDERAL COURT IN FLORIDA PLYGEM INDUSTRIES INC NEW YORK SAID A FEDERAL COURT IN FLORIDA RETURNED A 233 MILLION VERDICT AGAINST ITS HOOVER TREATED WOOD PRODUCTS INC UNIT PULTE HOME CORP BROUGHT THE SUIT CLAIMING CERTAIN DEFECTS IN PRESSURETREATED INTERIOR WOOD PRODUCTS MADE BY HOOVER PLYGEM SAID THE FEDERAL COURT AWARD MARKED THE LARGEST SUCH ACTION BROUGHT AGAINST HOOVER FOR ALLEGED DEFECTS IN ITS PRESSURETREATED INTERIOR WOOD PRODUCTS PLYGEM SAID HOOVER BELIEVES THE BASIS FOR THE VERDICT IS IN ERROR AND PLANS TO CONTEST THE DECISION HOOVER ADDED THAT THE CURRENT VERDICT WOULD BE COVERED BY INSURANCE PROCEEDS PLYGEM OFFICIALS DIDN'T RESPOND TO ATTEMPTS TO REACH THEM FOR FURTHER INFORMATION ABOUT THE VERDICT OR FOR COMMENT PLYGEM SHARES CLOSED UNCHANGED IN AMERICAN STOCK EXCHANGE TRADING 9303240104 930324 LETTERS TO THE EDITOR OZONE CFCS AND SCIENCE FICTION IN YOUR FEB 17 ENVIRONMENT ITEM MISCONCEPTIONS ON CFCS PROVE HARD TO ROOT OUT YOU REPEAT THE MOST COMMON MISCONCEPTION OF ALL ABOUT CHLOROFLUOROCARBONS THEY DEPLETE THE EARTH'S OZONE LAYER IT IS THEORETICALLY POSSIBLE FOR CFCS TO DESTROY OZONE IN THE STRATOSPHERE BUT THERE HAS NEVER BEEN ANY SCIENTIFICALLY VALID PROOF THAT THEY DO IN FACT FROM 1985 TO 1991 THE OZONE LAYER DENSITY AS MEASURED BY THE TOMS EXPERIMENT ON THE NIMBOS 7 SATELLITE ACTUALLY INCREASED IN THICKNESS THERE ARE MAJOR UNANSWERED QUESTIONS ABOUT CFCS AND THE OZONE LAYER SINCE CFCS ARE HEAVIER THAN AIR HOW DO THEY GET INTO THE STRATOSPHERE IN QUANTITIES LARGE ENOUGH TO CAUSE OZONE DEPLETION WHY DID THE OZONE HOLE WHICH IS NOT A HOLE AT ALL DEVELOP OVER ANTARCTICA WHEN MOST OF THE CFCS ARE USED IN THE NORTHERN HEMISPHERE AND FINALLY IF CFCS ARE RESPONSIBLE FOR THE DESTRUCTION OF THE OZONE LAYER WHY HAS THEIR PRESENCE NEVER BEEN DETECTED IN THE STRATOSPHERE THIS IS NOT AN ACADEMIC MATTER THE NEXT TIME YOUR CAR DEVELOPS A LEAK IN THE AIRCONDITIONING SYSTEM RECHARGING WITH THE NEW REFRIGERANT GAS R134A WILL COST YOU 400 TO 500 AS OPPOSED TO THE FREON RECHARGING COST OF 25 TO 50 THE COSTS OF CHANGING OVER REFRIGERATION SYSTEMS TO THE NEW GASES WILL COST AN ESTIMATED 40 BILLION TO 100 BILLION EACH YEAR FOR THE FORESEEABLE FUTURE AND ALL BECAUSE OF ENVIRONMENTAL NONSENSE YOU WRITE CLOSE TO HALF OF ALL THE PEOPLE SURVEYED DIDN'T KNOW HOW CHLOROFLUOROCARBONS AFFECT THE ENVIRONMENT ANSWER THEY DEPLETE THE EARTH'S OZONE LAYER WHAT IRONY THE REALITY IS THAT NO ONE KNOWS WHETHER SURVEYED OR NOT HOW CFCS AFFECT THE ENVIRONMENT THE GENERAL PUBLIC INCLUDING APPARENTLY THE WALL STREET JOURNAL HAS BEEN CONNED IN AN ENVIRONMENTAL SCAM OF DRAMATIC PROPORTIONS ALTHOUGH A DETAILED REBUTTAL OF THE ROWLAND HYPOTHESIS IS TOO INVOLVED TO RECITE HERE WE CAN SUMMARIZE THE ARGUMENT AS FOLLOWS 1 IF FREE CHLORINE IN THE STRATOSPHERE IS ESSENTIAL TO THE ROWLAND THEORY IT FAILS BECAUSE NATURAL CHLORINE SOURCES FAR OUTWEIGH CFC SOURCES OF CHLORINE 2 IF THERE WERE ANY DIRECT EVIDENCE OF INCREASING ULTRAVIOLET UV FLUX AT THE EARTH'S SURFACE CORRELATING TO THE RELEASE OF CFCS WE MAY BE SURE THAT THE ALARMISTS WOULD BE TOUTING THESE FIGURES FOR MAXIMUM BENEFIT TO THEIR POLITICAL CAUSE BUT WHAT IN FACT DO THE ZEALOTS REPORT OZONE CONCENTRATIONS IN THE POLAR REGIONS AT THE END OF POLAR WINTERS BUT OF COURSE WE COULD EXPECT LOWERED OZONE CONCENTRATIONS DURING THE POLAR WINTERS BECAUSE THERE IS LITTLE OR NO UV RADIATION THERE TO CREATE OZONE MORE RECENTLY NASA WENT PUBLIC WITH REPORTS OF INCREASED CHLORINE MONOXIDE CONCENTRATIONS OVER KENNEBUNKPORT AS EVIDENCE OF CFC DAMAGE TO THE ATMOSPHERE IT GIVES NEW MEANING TO THE PHRASE SCIENCE FICTION TO ENSURE CONTINUING APPROPRIATIONS FOR CFCOZONE RESEARCH COSTING WE MAY SPECULATE UPWARD OF 100 MILLION A YEAR NASA HAS ENGAGED IN A DISGRACEFUL PUBLIC DECEPTION THE WRITER IS A RETIRED NUCLEAR ENGINEER 9303240103 930324 LETTERS TO THE EDITOR YOU DIDN'T HEAR WHAT YOU HEARD REGARDING DECIPHERING LYRICS IS PART OF THE FUN FOR THE MUSIC LOVER PAGE ONE FEB 24 CONCERNING THE MULTITUDE OF MISUNDERSTOOD LYRICS IN ROCK MUSIC ONE MISUNDERSTOOD LINE THAT WAS NOT MENTIONED COMES FROM ONE OF THE MOSTPLAYED ROCK SONGS OF ALL TIME LED ZEPPELIN'S STAIRWAY TO HEAVEN THE LINE IF THERE'S A BUSTLE IN YOUR HEDGEROW DON'T BE ALARMED NOW IS OFTEN MISUNDERSTOOD TO END DON'T BE A LAWMAN DURING THE HEYDAY OF THE PAUL IS DEAD RUMORS SURROUNDING THE BEATLES ONE PIECE OF EVIDENCE OFTEN CITED WAS THE CLAIM THAT ALL YOU NEED IS LOVE CONTAINED THE LYRIC I BURIED PAUL SUNG BY JOHN LENNON IN LATER YEARS LENNON CLARIFIED IN INTERVIEWS THAT HE MERELY SAID CRANBERRY SAUCE WITH ROCK MUSIC BECOMING INCREASINGLY PROCESSED HOMOGENIZED AND FORMULAIC READ DEAD PERHAPS THE ARTFUL DEPLOYMENT OF CONFUSING LYRICS IS THE LAST BASTION OF CREATIVITY 9303240102 930303 PRICING HEALTH CARE DON'T KILL THE SYSTEM THAT SAVED MY LIFE BY JONATHAN KWITNY THE CLINTON ADMINISTRATION SEEMS TO BE AIMING FOR MANAGED CARE IN WHICH LARGE GROUP HEALTHINSURANCE PURCHASERS EMPLOYERS TRADE ASSOCIATIONS OR THE GOVERNMENT BARGAIN WITH LARGE GROUP PRACTITIONERS HEALTH MAINTENANCE ORGANIZATIONS OR HMOS TO HOLD PRICES DOWN THE IMPENDING CONGRESSIONAL FIGHT SEEMS TO BE OVER WHETHER PERSONNEL AND PROCEDURES WILL BE DECREED BY A FACELESS BUREAUCRACY IN WASHINGTON CALLED SOCIALISM OR A FACELESS BUREAUCRACY SOMEWHERE ELSE CALLED FREE ENTERPRISE EITHER WAY THE PLANNERS ARE CUTTING OUT THE PEOPLE WHOSE LIVES ARE AT STAKE THE PATIENTS THEIR CARE WILL INEVITABLY SUFFER THE STRENGTH OF THE AMERICAN SYSTEM IS THAT IF YOU ARE AMONG THE LUCKY MAJORITY WHO CAN GET DECENT INSURANCE AND IF YOU MAKE AN EFFORT TO EDUCATE YOURSELF AND SEEK OUT GOOD CARE YOU CAN STILL USUALLY GET THE BEST IN THE WORLD THIS IS BECAUSE MOST PATIENTS CAN CHOOSE THEIR DOCTORS AND DOCTORS HAVE LEEWAY TO BEND STANDARD PROCEDURES TO PROVIDE THE CARE A SITUATION CALLS FOR THE DISPARITY BETWEEN HMOS AND THE TRADITIONAL FREE CHOICE OF DOCTORS AND HOSPITALS IS MUCH MORE IMPORTANT THAN THE OTHER ISSUES NOW BEING DEBATED MEDICAL CHOICE IS NOT AN UNAFFORDABLE LUXURY IT NEEDN'T BE MORE EXPENSIVE THAN HMOS IF OTHER STEPS ARE TAKEN TO CUT COSTS I KNOW A LOT ABOUT THIS I WAS TREATED FOR HODGKIN'S DISEASE 20 YEARS AGO WHEN THE ROAD WAS LESS WELL MAPPED THAN NOW I WAS DIAGNOSED EARLY BY AN INTERNIST RECOMMENDED BY FRIENDS MY FATHER A DOCTOR IN INDIANA DIRECTED ME TO WHAT HE THOUGHT WAS THE BEST HOSPITAL FOR MY CASE MEMORIAL SLOAN KETTERING IN NEW YORK WHERE RADIATION APPARENTLY CURED ME BUT EVEN AT MEMORIAL THE HEAD OF THE HODGKIN'S TEAM MISREAD A LATER LYMPHANGIOGRAM AND RECOMMENDED CHEMOTHERAPY MY FATHER URGED A SECOND OPINION OUR RESEARCH LED US TO TOP DOCTORS IN BOSTON AND AT STANFORD WHOSE OPINIONS PREVENTED UNNECESSARY TREATMENTS THAT WOULD HAVE COST A LOT AND TAKEN YEARS OFF MY LIFE EXPECTANCY MY WIFE DIED OF KIDNEY DISEASE AFTER FOUR YEARS OF DIALYSIS AND TWO TRANSPLANTS AGAIN WE SOUGHT OUT THE BEST DOCTORS AND HOSPITALS AT PROBABLY NO HIGHER PRICE THAN SECONDRATE ONES WHEN OUR INSURANCE COMPANY SAID THE FEE OF THE NATION'S MOST ACTIVE TRANSPLANT SURGEON WAS MORE THAN CUSTOMARY HE FORGAVE THE REST OF THE BILL MY WIFE CAREFULLY WEIGHED THE DANGERS OF TRANSPLANTS AGAINST HER UNIQUE KNOWLEDGE OF THE AGONY OF CONTINUED DIALYSIS MAYBE HER DEATH MEANS SHE JUDGED WRONG BUT SHE WANTED THAT CHOICE MY YOUNGER DAUGHTER NOW HAPPILY IN COLLEGE COULD NEVER HAVE BEEN BORN ACCORDING TO STANDARD MEDICAL GUIDELINES UNDER WHICH OUR FIRST CHILD DIED AGAIN WE SOUGHT OUT THE BEST DOCTOR IN THE COUNTRY FOR OUR SITUATION KIDNEYPROBLEM PREGNANCIES HE PULLED OUR BABY THROUGH WHERE A LOCAL OBSTETRICIAN HAD FAILED MY LATEST BOOK ACCEPTABLE RISKS IS ABOUT DEATHLY ILL PATIENTS WHO SUCCESSFULLY TOOK THEIR TREATMENT INTO THEIR OWN HANDS WITH THE HELP OF COOPERATIVE MAVERICK DOCTORS THE UNAPPROVED TREATMENTS THEY USED WERE SAFER CHEAPER AND MORE EFFECTIVE THAN TREATMENTS THE FDA APPROVED LIFE OFTEN DEPENDS ON FINDING JUST THE RIGHT DOCTOR WITH JUST THE RIGHT APPROACH AND IT DOESN'T NECESSARILY COST EXTRA TO FIND WASTE IN THE SYSTEM ONE COULD LOOK INSTEAD AT THE WAY AMERICANS HAVE GROWN TO THINK OF HEALTH INSURANCE AS A WAY TO BUDGET ROUTINE MEDICAL CARE INSURANCE SHOULD BE DISASTER PROTECTION FOR WHEN THE HOUSE BURNS DOWN THE SHIP SINKS OR THE YOUNG BREADWINNER DIES YET WHEN IT COMES TO HEALTH WE SEND FOR INSURANCE ACCOUNTANTS AND ADJUSTERS EVERY TIME WE CATCH COLD TURN AN ANKLE OR GO FOR A YEARLY CHECKUP THIS MEANS THAT THE COST OF AN ADMINISTRATIVE BUREAUCRACY IS ADDED TO ROUTINE MEDICAL VISITS IT ALSO MEANS THAT THE COST OF THE CARE IS UNREGULATED BY THE MARKETPLACE PEOPLE DON'T COSTSHOP AS THEY WOULD IF THE MONEY WERE COMING FROM THEIR OWN POCKETS A NEW SYSTEM IN WHICH LARGE ORGANIZATIONS MAKE DECISIONS ON A RULEBOOK RATHER THAN A CASEBYCASE BASIS WON'T CHANGE THAT WHETHER THE ORGANIZATIONS ARE PUBLIC OR PRIVATE INSTEAD IT WILL REDUCE COSTS BY REDUCING THE QUALITY OF CARE WHY NOT ENCOURAGE POLICIES WITH DEDUCTIBLES OF 1000 OR 1500 A PERSON THAT DON'T INVOLVE INSURERS UNTIL A TRUE DISASTER BRINGS UNEXPECTEDLY LARGE BILLS AND WHY NOT ENCOURAGE PATIENTS TO SHOP AMONG LABORATORIES BY REQUIRING DOCTORS AND HOSPITALS TREATING OUTPATIENTS TO PERMIT A CHOICE OF LABS FOR PRESCRIBED TESTS WHERE POSSIBLE SOME INDEPENDENT LABS' FEES ARE HALF THOSE OF LARGE HOSPITALS YES 1000 OR 1500 A PERSON IS A LOT FOR MANY FAMILIES TO FOOT MEDICAL CARE SOME SAY IS A RIGHT BUT IS IT MORE OF A RIGHT THAN FOOD WE GUARANTEE FOOD TO THE POOR THROUGH FOOD STAMPS AND OTHER MEASURES YET WE STILL SUBJECT FOOD COSTS TO MARKET PRESSURE BY GIVING MOST PEOPLE INCLUDING THOSE ON FOOD STAMPS AN INCENTIVE TO SHOP FOR PRICE AS WELL AS QUALITY WITH PRICESHOPPING INCENTIVES MEDICAL COSTS TOO WOULD COME DOWN CONFRONTING ROUTINE BILLS INSTEAD OF INSURING THEM COULD JOLT SOME FAMILY BUDGETS OF COURSE GOVERNMENT COULD EASE THAT ONE PROPOSAL CALLS FOR TAXFREE MEDICAL SAVINGS ACCOUNTS LIKE IRAS SOCIETY COULD STILL GIVE WAIVERS TO THE POOR OR TO CHILDREN NOT OTHERWISE COVERED JUST AS IT NOW SUBSIDIZES THE ELDERLY HMOS PERHAPS STAFFED WITH DOCTORS PAYING OFF SCHOOL LOANS MIGHT EVEN BE AN APPROPRIATE VEHICLE FOR SAFETYNET CARE BUT THEY SHOULDN'T BE THE SYSTEM STANDARD THE HEALTHCARE SYSTEM NEEDS MANY FIXES PROTECTION SHOULDN'T BE WITHDRAWN FROM THOSE MOST IN NEED WHO FACE DIRE ILLNESS INSURANCE SHOULDN'T DEPEND ON WHERE ONE CHOOSES TO WORK THE MEDICAL MALPRACTICE SYSTEM IS WASTEFUL THE FDA SHOULD BE REDIRECTED MORE TOWARD THE DEMAND SIDE PATIENTS AND THEIR DOCTORS AND LESS TOWARD THE SUPPLY SIDE DRUG COMPANIES AND RESEARCH INSTITUTIONS BUT ONE THING WE DON'T WANT TO DO IS WIPE OUT THE SYSTEM'S GREAT STRENGTH THE RIGHT OF PATIENTS TO CHOOSE EACH HEALTHCARE PROVIDER AS CIRCUMSTANCES INDICATE AND THE RIGHT OF DOCTORS TO GO OUTSIDE THE BUREAUCRATIC BOOK WHEN PATIENTS' NEEDS REQUIRE IT MR KWITNY A FORMER JOURNAL REPORTER IS THE AUTHOR OF ACCEPTABLE RISKS POSEIDON PRESS SEE RELATED LETTER LETTERS TO THE EDITOR MEDICINE'S GOLDEN AGE THREATENED BY ATTACKS WSJ MARCH 23 1993 9303030029 9303240101 930324 INTERNATIONAL VOLKSWAGEN TWOMONTH SALES WOLFSBURG GERMANY LED BY A PLUNGE IN DOMESTIC SALES VOLKSWAGEN AG SAID ITS WORLDWIDE CAR SALES IN THE FIRST TWO MONTHS OF THIS YEAR FELL TO 489000 VEHICLES DOWN 13 FROM THE YEARAGO PERIOD IN ITS HOME MARKET THE GERMAN AUTO MAKER SAID SALES PLUNGED 29 TO 142000 CARS IN THE TWOMONTH PERIOD WHILE IN EUROPE AS A WHOLE CAR SALES FELL 21 TO 327600 VEHICLES ALTHOUGH THE DECLINES IN AUTO SALES FOR THE TWO MONTHS IN BOTH GERMANY AND EUROPE FAR EXCEED VW'S EARLIER FORECASTS A VW SPOKESMAN SAID THE COMPANY SAW NO REASON TO REVISE ITS FULLYEAR SALES FORECAST VW HAS ESTIMATED THAT DOMESTIC AUTO SALES THIS YEAR WILL BE 20 BELOW 1992 LEVELS AND THAT ITS EUROPEAN SALES WILL BE ABOUT 10 BELOW LAST YEAR'S 9303240100 930324 ECONOMY WHITE HOUSE SEEKS TO SHORE UP SUPPORT FOR PUBLIC SPENDING IN ECONOMIC PLAN BY DAVID ROGERS AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE SOUGHT TO SHORE UP SUPPORT FOR THE PUBLICSPENDING PART OF ITS ECONOMICSTIMULUS PLAN EVEN AS LONGSTANDING DOUBTS HAVE RESURFACED ABOUT PROMISED TAX INCENTIVES INTENDED TO STIMULATE PRIVATE INVESTMENT THE SENATE APPROPRIATIONS COMMITTEE APPROVED THE 16 BILLIONPLUS SPENDING MEASURE AFTER ONLY MINOR ALTERATIONS AND CHAIRMAN ROBERT BYRD STRUCTURED THE BILL IN AN UNUSUAL PARLIAMENTARY DEVICE THAT HE HAS USED IN THE PAST TO BLUNT CHALLENGES ON THE FLOOR THE ACTION CAME AS THE WHITE HOUSE ORCHESTRATED A STEPPEDUP LOBBYING EFFORT BY MAYORS AND GOVERNORS AND PRESIDENT CLINTON MOVED PERSONALLY TO DAMPEN CRITICISM FROM CONSERVATIVES IN HIS OWN PARTY THERE ARE A BLOCK OF PEOPLE IN THE SENATE INCLUDING SOME DEMOCRATS WHO BELIEVE THAT THE ONLY THING THAT MATTERS IS TO REDUCE THE DEFICIT MR CLINTON SAID AT A NEWS CONFERENCE NOW BELIEVE ME THAT'S A BIG IMPROVEMENT OVER THE PAST BUT I JUST DISAGREE WITH THEM I DON'T THINK THAT'S THE ONLY THING THAT MATTERS I BELIEVE THAT INVESTING IN THE FUTURE MATTERS TOO HE SAID THOUGH MOST ATTENTION HAS FOCUSED ON THE SPENDING SIDE OF THE LEDGER TAX WRITERS IN CONGRESS HAVE BECOME MORE OPEN IN QUESTIONING THE WISDOM OF THE ACCOMPANYING INVESTMENT TAX CREDITS THAT ARE EXPECTED TO COST THE TREASURY AS MUCH AS 295 BILLION OVER THE NEXT FIVE YEARS THESE INCENTIVES ARE TO BE WRAPPED INTO A LARGER TAX BILL THAT WOULD RAISE THE REVENUES FOR THE PRESIDENT'S DEFICITREDUCTION PROGRAM AND CORPORATE INTERESTS HAVE MOUNTED A CONCERTED CAMPAIGN TO KILL OR TRIM THE CREDITS IN RETURN FOR CONCESSIONS ELSEWHERE THIS LOBBYING EFFORT HAS PLAYED ON RESERVATIONS LONG HELD BY PROMINENT LAWMAKERS WHO WERE PART OF THE TAXOVERHAUL MOVEMENT IN 1986 GIVEN THE COST OF THE CREDITS THERE IS PRESSURE TO REDISTRIBUTE THE FUNDS TO STRIKE THE BARGAINS NEEDED TO PASS THE PRESIDENT'S LARGER PACKAGE IN RECENT DAYS HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI HAS SPOKEN OF THE NEED FOR WIGGLE ROOM SAYING THAT I'M ONLY ONE VOTE YESTERDAY THE CHICAGO DEMOCRAT WENT FURTHER BY WARNING THAT GIVEN HIS OWN DOUBTS HE WILL BE LESS THAN PERSUASIVE IN DEFENDING THE TAX CREDITS TO HIS MEMBERS I'M NOT TRYING TO FUEL THE FIRE I WANT TO BE A GOOD SOLDIER SAID MR ROSTENKOWSKI BUT HE SAID HE HAD BEEN EARLY TO WARN THE ADMINISTRATION THAT THE TAX CREDIT MUCKED UP THE TAX CODE WAS TOO CONVOLUTED TO BE USED BY MANY SMALL BUSINESSES AND HAD BEEN LARGELY REJECTED BY MANY LARGE CORPORATIONS I'M CONCERNED THE CHAIRMAN SAID SIMILAR RESERVATIONS ARE BEING EXPRESSED BY REP ROSTENKOWSKI'S COUNTERPART IN THE SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN THERE'S NO ONE IN THE TAX FIELD WHO HAS EVER PERSUADED ME THIS IS AN EFFECTIVE INCENTIVE SAID THE NEW YORK DEMOCRAT I FIND SOME SUPPORT IN THE SENATE I FIND OPPOSITION IN THE COMMITTEE AS RECOMMENDED BY THE APPROPRIATIONS COMMITTEE THE SPENDING BILL PROVIDES FOR NEARLY 163 BILLION IN NEW APPROPRIATIONS AS WELL AS RELEASING 32 BILLION FROM FEDERAL TRUST FUNDS TO FINANCE HIGHWAY AND PUBLIC WORKS PROJECTS MR BYRD WHO MET WITH MR CLINTON HOURS BEFORE THE 1910 VOTE USED HIS PRESTIGE TO BLOCK AMENDMENTS THE WEST VIRGINIA DEMOCRAT APPEARS TO SEE THE MEASURE AS AN OPPORTUNITY TO PROVE HIS WORTH TO THE NEW PRESIDENT WHO AS A CANDIDATE ADVOCATED A LINEITEM VETO THAT WOULD CURB THE POWER OF THE APPROPRIATIONS LEADERSHIP THE DISCRETION LEFT TO THE WHITE HOUSE IN THIS MEASURE IS EXTRAORDINARY GIVEN THE COMMITTEE'S TRADITION OF CONTROLLING WHERE FUNDS GO AND THE ADMINISTRATION APPEARS TO BE BACKING AWAY FROM SOME OF THE EARLY JUSTIFICATIONS GIVEN FOR INDIVIDUAL ACCOUNTS IN THE COMMERCE AND INTERIOR DEPARTMENTS IN THE CASE OF COMMERCE 8 MILLION WAS LEFT IN THE DEPARTMENT'S BUDGET YESTERDAY EVEN AFTER ALL SIDES AGREED THAT IT WOULDN'T BE USED FOR ITS ORIGINAL PURPOSE AND SENATORS SEEMED CONTENT TO ACCEPT A BLANKET COMMITMENT FROM WHITE HOUSE BUDGET DIRECTOR LEON PANETTA THAT THE ADMINISTRATION IS COMMITTED TO CAREFUL OVERSIGHT OF THE PROGRAM THE PRESIDENT'S CHIEF THREAT COMES FROM CONSERVATIVE DEMOCRATS WHO ARE SEEKING TO DELAY RELEASE OF ABOUT HALF OF THE 163 BILLION UNTIL CONGRESS HAS ENACTED THE PRESIDENT'S DEFICITREDUCTION PLAN THIS SUMMER ANY DELAYS IN SPENDING WILL UNDERCUT THE PURPOSE OF THE STIMULUS BILL SAID MR CLINTON IN A LETTER TO MR BYRD YESTERDAY BUT THE ADMINISTRATION WILL HAVE AN UPHILL FIGHT IF REPUBLICANS UNIFY BEHIND THIS CONSERVATIVE FACTION FOR EXAMPLE WESTERN DEMOCRATS HAVE BEEN BUFFETED BY COMPLAINTS ABOUT THE ADMINISTRATION'S PROPOSED INCREASE IN GRAZING FEES AND ROYALTIES ON MINERALS EXTRACTED FROM FEDERAL LANDS SO THE SENATE APPROVED ON A 5445 VOTE A RESOLUTION BY SEN JEFF BINGAMAN D NM EXPRESSING THE SENATE'S WISH THAT SUCH FEES BE SET AT LEVELS THAT PERMIT THE RANCHING AND MINING INDUSTRIES TO REMAIN VIABLE DURING DEBATE ENERGY COMMITTEE CHAIRMAN BENNETT JOHNSTON D LA SAID HE DIDN'T EXPECT THE ADMINISTRATION'S PROPOSALS TO BE ENACTED UNCHANGED REPUBLICAN PETE DOMENICI OF NEW MEXICO BLASTED THE RESOLUTION AS A FACADE TO PROTECT DEMOCRATS BUT THE EFFORT SUCCEEDED THE LEADERSHIP SUFFERED A MINOR SETBACK WHEN REPUBLICANS AND DEFECTING DEMOCRATS APPROVED BY A 5643 VOTE AN AMENDMENT BY SENATE ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN D GA THAT TRIED TO SPECIFY THAT DEFENSE WON'T BE CUT ANY FURTHER THAN ALREADY PROPOSED IN ORDER TO FINANCE DOMESTIC SPENDING BUDGET COMMITTEE CHAIRMAN JAMES SASSER D TENN OPPOSED THIS NONBINDING RESOLUTION MORE SIGNIFICANTLY HOWEVER DEMOCRATIC SENATORS DECLARED THAT THEY HAD ENOUGH VOTES TO FEND OFF GOP ATTEMPTS TO STRIP THE PROPOSED TAX INCREASE ON THE MOST AFFLUENT SOCIAL SECURITY RECIPIENTS DEMOCRATIC LEADERS HAD CONSIDERED RAISING THE INCOME THRESHOLDS FOR THE INCREASE AS PROPOSED IT WOULD AFFECT INDIVIDUALS WITH INCOMES OF AT LEAST 25000 AND COUPLES WITH INCOMES OF 32000 TO HOLD WAVERING SENATORS BUT SAID AFTER A MIDDAY MEETING THEY DIDN'T NEED TO 9303240099 930324 COMMODITIES CORN SOYBEAN PRICES RISE IN RESPONSE TO VOW BY CLINTON TO OFFER MOSCOW AID PLAN AT SUMMIT BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO CORN AND SOYBEAN PRICES ROSE IN THE WAKE OF PRESIDENT CLINTON'S PROMISE TO UNVEIL AN AID PACKAGE FOR MOSCOW IN TIME FOR AN APRIL SUMMIT WITH RUSSIAN PRESIDENT BORIS YELTSIN IN TRADING AT THE CHICAGO BOARD OF TRADE YESTERDAY THE SOYBEAN CONTRACT FOR JULY DELIVERY JUMPED 65 CENTS A BUSHEL TO SETTLE AT 59675 A BUSHEL THE CORN CONTRACT FOR MAY DELIVERY ROSE 275 CENTS A BUSHEL TO SETTLE AT 22750 A BUSHEL CORN PRICES ARE EXPECTED TO ATTRACT ADDITIONAL SUPPORT TODAY FOLLOWING THE CLINTON ADMINISTRATION'S DECISION TO EXEMPT CORNBASED ETHANOL FROM ITS PROPOSED ENERGY TAX GRAIN TRADERS ARE SPECULATING THAT THE EXEMPTION WILL MAKE ETHANOL MORE ATTRACTIVE TO PRODUCE ABOUT 5 OF THE US CORN CROP IS REFINED FOR ETHANOL TREASURY SECRETARY LLOYD BENTSEN SAID IN A LETTER TO DEMOCRATIC SEN BOB KERREY OF NEBRASKA THAT THE EXEMPTION IS DESIGNED TO PROMOTE THE DEVELOPMENT OF ALTERNATIVE FUELS THE EXEMPTION WOULD ALSO APPLY TO METHANOL WHICH THE PETROLEUM INDUSTRY USES TO MAKE METHYL TERTIARY BUTYL ETHER MTBE COMPETES WITH ETHANOL AS AN ADDITIVE THAT MAKES GASOLINE BURN CLEANER THE MOVE HELPED LIFT THE SHARES OF ARCHERDANIELSMIDLAND CO THE BIGGEST ETHANOL PRODUCER IN THE US IN LATE TRADING AT THE NEW YORK STOCK EXCHANGE ARCHER DANIELS ROSE 75 CENTS TO CLOSE AT 26625 A SHARE MR CLINTON'S COMMENTS DURING A NEWS CONFERENCE YESTERDAY SHORED UP SPECULATION THAT THE WHITE HOUSE WILL CONTINUE TO USE FOOD DONATIONS AS A SIGN THAT IT BACKS MR YELTSIN WHO IS WAGING A POWER STRUGGLE WITH THE RUSSIAN PARLIAMENT SO FAR THIS MONTH THE WHITE HOUSE HAS DONATED 210000 METRIC TONS OF CORN 520000 METRIC TONS OF WHEAT AND 87000 METRIC TONS OF RICE THE DONATIONS ARE VALUED AT ABOUT 122 MILLION THE CLINTON ADMINISTRATION HAS BEEN VAGUE ABOUT ITS PLANS FOR FURTHER FOOD AID BUT GRAIN INDUSTRY OFFICIALS SAY RUSSIA PROBABLY NEEDS BETWEEN 200 MILLION AND 1 BILLION OF ADDITIONAL AID TO TIDE IT OVER WHILE THE MAJOR INDUSTRIAL NATIONS WORK ON RESCHEDULING RUSSIA'S TOWERING FOREIGN DEBT RUSSIA IS USUALLY A MAJOR CUSTOMER OF US GRAIN FARMERS BUT IT HASN'T BEEN A SIGNIFICANT BUYER SINCE MOSCOW BEGAN DEFAULTING ON USBACKED GRAIN LOANS IN NOVEMBER SO FAR RUSSIA HAS MISSED 5743 MILLION IN PAYMENTS ON THE 42 BILLION IN THREEYEAR LOANS THAT IT AND THE FORMER SOVIET UNION ARRANGED WITH THE HELP OF THE AGRICULTURE DEPARTMENT'S CREDIT GUARANTEE PROGRAM UNDER THAT PROGRAM THE DEPARTMENT ENCOURAGED BANKS TO MAKE THE GRAINBUYING LOANS BY PROMISING TO MAKE GOOD ON THE DEBTS IF MOSCOW COULDN'T AS A RESULT INTERNATIONAL LENDERS HAVE FILED CLAIMS TOTALING 380 MILLION WITH THE AGRICULTURE DEPARTMENT FOR THE SOUR RUSSIAN LOANS RUSSIAN REPRESENTATIVES HAVE TOLD US LENDERS THAT THEY WOULD PREFER TO BUY US GRAIN THROUGH COMMERCIAL MARKETS RATHER THAN RECEIVING DONATIONS BUT MOST LENDERS WON'T FINANCE RUSSIAN GRAIN IMPORTS WITHOUT THE BACKING OF THE US CREDIT GUARANTEE PROGRAM FROM WHICH MOSCOW WAS SUSPENDED IN NOVEMBER STILL RUSSIAN OFFICIALS HAVE BEEN QUIETLY LOBBYING THE US TO UNBLOCK SOME GRAIN SHIPMENTS THAT WERE IN THE WORKS WHEN THE SUSPENSION BEGAN IN EXCHANGE RUSSIA IS OFFERING TO CATCH UP ON THE GRAIN LOANS IT GENERATED SINCE BECOMING AN INDEPENDENT NATION ROUGHLY 250 MILLION IN GRAIN SHIPMENTS WERE PUT IN LIMBO BY RUSSIA'S SUSPENSION FROM THE CREDIT GUARANTEE PROGRAM AT LEAST ONE US LENDER HAS INDICATED THAT IT WOULD HELP FINANCE THE SHIPMENTS IF CREDIT GUARANTEES FROM THE AGRICULTURE DEPARTMENT ARE AVAILABLE WHEAT PRICES FELL ON PROFITTAKING LATE IN THE SESSION LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK PRECIOUS METALS PRECIOUS METALS FUTURES MARKETS APPEARED FOR NOW TO HAVE SHRUGGED OFF WORRIES ABOUT POLITICAL TURMOIL IN RUSSIA WITH GOLD GIVING BACK ITS 100 AN OUNCE GAIN OF MONDAY ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY SETTLED AT 33230 AN OUNCE YESTERDAY SILVER FOR MAY DELIVERY SETTLED 28 CENTS LOWER AT 3662 CENTS AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE PALLADIUM FOR JUNE DELIVERY INCHED UP 65 CENTS TO 10600 AN OUNCE PLATINUM BOOSTED BY A REPORT THAT A MAJOR SOUTH AFRICAN PRODUCER WAS CUTTING BACK OUTPUT BECAUSE OF UNECONOMIC PRICE LEVELS WAS THE ONE PRECIOUS METALS MARKET TO SHOW ROBUST STRENGTH JUMPING 320 TO 35930 AN OUNCE IN APRIL ON THE NEW YORK MERC SUGAR FUTURES PRICES FELL CLOSING 044 CENT LOWER AT 1178 CENTS A POUND ON THE ACTIVELY TRADED MAY CONTRACT TRADERS SAID SUGAR FUTURES WERE DRIVEN LOWER BY PROFITTAKING AMONG COMMODITY FUNDS AND OTHER LARGE INVESTORS ANALYSTS CAUTIONED AGAINST A FURTHER SUSTAINED RISE IN SUGAR FUTURES WHICH HAVE BEEN ROARING AHEAD IN RECENT WEEKS WHILE MANY TRADERS MAY BE CALLING FOR A PRICE LEVEL OF 16 CENTS A POUND THIS MARKET IS EXTREMELY OVERBOUGHT SAID BERNARD SAVAIKO A SENIOR ANALYST WITH PAINEWEBBER WHILE THERE ARE PRODUCTION PROBLEMS AROUND THE WORLD AN IMPORTANT CONSIDERATION HAS BEEN OVERLOOKED THAT CONSUMPTION PARTICULARLY FROM CASHSTARVED COUNTRIES SUCH AS RUSSIA AND THE REST OF THE COMMONWEALTH OF INDEPENDENT STATES COULD SUFFER DRASTICALLY AS A RESULT OF GROWING ECONOMIC DEPRIVATION IN KEY CONSUMER NATIONS MR SAVAIKO ADDED AMID REVISED ESTIMATES POINTING TO TIGHTENING WORLD SUPPLIES SUGAR PRICES HAVE RISEN FROM A LOW OF 835 CENTS IN EARLY FEBRUARY TO A RECENT HIGH OF 1253 CENTS A POUND MONDAY WITH INFREQUENT CORRECTION 9303240098 930324 MARKETING & MEDIA ADVERTISING AUDI OF AMERICA PUTS ACCOUNT HELD BY NEEDHAM UP FOR REVIEW BY KEVIN GOLDMAN AUDI OF AMERICA ABRUPTLY PUT ITS 28 MILLION ACCOUNT UP FOR REVIEW AFTER ALMOST A QUARTERCENTURY WITH OMNICOM GROUP'S DDB NEEDHAM THE UNEXPECTED REVIEW COMES EVEN AS AUDI SALES ARE REBOUNDING FOR THE FIRST TIME SINCE THEY STARTED A FREEFALL IN 1986 AFTER THE AUTO MAKER WAS PLAGUED BY UNFOUNDED ALLEGATIONS THAT AUDI MODELS WERE HAMPERED BY SUDDEN ACCELERATION ALTHOUGH SALES WERE UP LAST YEAR BY A HEALTHY 20 THE 14700 CARS SOLD WERE NOWHERE NEAR AUDI'S HEYDAY IN 1985 WHEN 74241 AUTOS DROVE OUT OF THE SHOWROOM BUT AUDI ALSO HAS BEEN BATTERED BY INCREASED COMPETITION IN THE LUXURY IMPORT CATEGORY AND A MURKY MESSAGE DELIVERED THROUGH NEEDHAM ADVERTISING SIMPLY PUT AUDI HASN'T MANAGED TO CREATE A STRONG IDENTITY AMONG CONSUMERS SAY AUTO ANALYSTS THAT'S WHY NEEDHAM MAY BE IN REAL DANGER OF LOSING THE ACCOUNT ALTHOUGH AUDI INCREASED ITS AD SPENDING BY 14 LAST YEAR ACCORDING TO LEADING NATIONAL ADVERTISERS ANALYSTS ARE HARD PRESSED TO RECALL ANY DISTINCTIVE AUDI COMMERCIAL NEW SPOTS FROM NEEDHAM'S CHICAGO OFFICE THAT INTRODUCED THE AUDI 90 USED THE COLE PORTER STANDARD NIGHT AND DAY TO SHOW A BUSINESS WOMAN SHUTTLING AROUND TOWN DOING BUSINESS AND GETTING READY FOR AN EVENING AT A CLASSICAL MUSIC CONCERT WELCOME TO THE 90S THE VOICEOVER SAID TO DRIVE IT IS TO TAKE CONTROL ALTHOUGH AUDI SEEMS TO HAVE RECOVERED FROM THE PUBLIC RELATIONS NIGHTMARE OF THE SUDDENACCELERATION ALLEGATIONS NO ONE IS AWARE OF AUDI'S NEW STORY SAYS JOHN HAMMOND SENIOR PARTNER OF JD POWER & ASSOCIATES BASED IN AGOURA HILLS CALIF AUDI REALLY HAS TO FOCUS ON THE GETTING A MESSAGE ACROSS TO THE PUBLIC AND THAT'S WHERE THE AD AGENCY COMES IN AN AD AGENCY REVIEW IS A LOGICAL STEP FOR AUDI SAYS SUSAN JACOBS AN ANALYST WITH JACOBS AUTOMOTIVE AN AUTO FORECASTING AND CONSULTING FIRM IN LITTLE FALLS NJ IT'S TAKEN AUDI A LONG TIME TO RECOVER FROM THE UNINTENDEDACCELERATION STORY AND IT IS IN A POSITION TO RECREATE THE IMAGE OF THE BRAND FOR THE 1990S A QUESTION LOOMING ON MADISON AVENUE IS WHETHER ANDY BERLIN THE LARGERTHANLIFE PRESIDENT OF NEEDHAM'S NEW YORK OFFICE MIGHT USE THIS CRISIS TO WREST CONTROL OF THE PRESTIGIOUS AUTO ACCOUNT AWAY FROM NEEDHAM'S CHICAGO OFFICE MR BERLIN DIDN'T RETURN SEVERAL TELEPHONE CALLS SEEKING COMMENT SUSAN D GILLETTE PRESIDENT OF NEEDHAM'S CHICAGO OFFICE WAS IN NEW YORK YESTERDAY AND DIDN'T RETURN A TELEPHONE CALL A SPOKESWOMAN IN NEEDHAM CHICAGO DECLINED TO COMMENT NEEDHAM EXECUTIVES ARE TO MEET WITH AUDI BRASS IN NEW YORK TOMORROW WHERE THEY ARE EXPECTED TO DECIDE WHETHER NEEDHAM ITSELF WILL PARTICIPATE IN THE REVIEW THAT PROSPECT IS CONSIDERED HIGHLY LIKELY DDB NEEDHAM HAS BEEN THE ONLY US AD AGENCY FOR AUDI WHICH STARTED OUT WITH FORERUNNER DOYLE DANE BERNBACH IN 1969 BY CONTRAST INCUMBENT AMMIRATI & PURIS ANGRILY WALKED OUT WHEN ITS FOREIGN CAR MAKER CLIENT BMW WANTED TO PUT THE ACCOUNT UP FOR REVIEW BMW SELECTED MULLEN ADVERTISING IN A STATEMENT AUDI'S MR KLAUSS SAID THE AUTO MAKER IS REEVALUATING KEY ELEMENTS OF OUR MARKETING STRATEGY WE WANT TO STRENGTHEN AUDI'S IMAGE AND HEIGHTEN CONSUMER AWARENESS OF THE AUDI BRAND A SPOKESMAN SAID MR KLAUSS WOULDN'T COMMENT BEYOND THE PREPARED REMARKS NEWS OF THE ACCOUNT REVIEW WAS WELCOMED BY AUDI'S DEALERS WHOSE OPINIONS CAN INFLUENCE THE PARENT COMPANY WAYNE WILLIAMS OWNER OF WILLIAMS AUTOWORLD IN LANSING MICH AND A MEMBER OF AUDI'S DEALER COUNCIL CHARACTERIZED IT AS A PRUDENT MOVE WE THOUGHT NEEDHAM WAS A SACRED COW BECAUSE IT'S BEEN THE AGENCY FOR SO LONG BUT IN THIS COMPETITIVE MARKETPLACE THERE ARE NO SACRED COWS MR WILLIAMS SAID NEEDHAM HAS BRILLIANT EMPLOYEES BUT BECAUSE AUDI IS A NICHE MARKETER IT MUST SEE WHAT OTHER CREATIVE IDEAS ARE OUT THERE THE RIVAL AGENCIES THAT MIGHT OFFER THEIR CREATIVE ALTERNATIVES INCLUDE AMMIRATI & PURIS WHICH HASN'T FILLED THE VOID LEFT BY BMW WPP GROUP'S FALLON MCELLIGOTT WHICH LOST ITS PRIZED PORSCHE ACCOUNT EARLIER THIS YEAR AND LORD DENTSU & PARTNERS WHICH WON THE AMATI LUXURY ACCOUNT ONLY TO DISCOVER THAT MAZDA HAD SHELVED PLANS TO INTRODUCE THE MODEL EACH AGENCY DECLINED TO COMMENT ANOTHER POSSIBILITY TBWA ADVERTISING WHICH HAS BEEN A FINALIST IN SEVERAL AUTO ACCOUNTS BUT HAS NEVER WON THE GOLD WHEN NEEDHAM'S PARENT OMNICOM ACQUIRED TBWA LAST MONTH THE SHOP'S CHAIRMAN BILL TRAGOS HAD STRESSED HIS INDEPENDENCE AND HAD SAID HE WAS LOOKING FORWARD TO COMPETING AGAINST NEEDHAM NOW HE MAY GET A CHANCE TO PROVE HIS POINT TIMBERLAND A HAMPTON NH SHOE AND APPAREL COMPANY CONSOLIDATED ITS 25 MILLION WORLDWIDE AD ACCOUNT WITH MULLEN ADVERTISING THE MIDSIZE WENHAM MASS SHOP THAT HAS HANDLED TIMBERLAND'S US ADS SINCE 1988 MULLEN SUCCEEDS LONDON AGENCY LEAGAS DELANEY ON THE EUROPEAN PORTION OF THE BUSINESS THE MOVE COMES AS TIMBERLAND PREPARES A SINGLE BRAND GLOBAL STRATEGY INCORPORATING MULLEN'S WIND WATER EARTH AND SKY PRINT CAMPAIGN THE WIN CAPS AN AVALANCHE OF NEW BUSINESS AT MULLEN SINCE LAST MONTH THE SHOP ALSO HAS REELED IN THE CREATIVE PORTION OF BMW OF NORTH AMERICA'S ESTIMATED 70 MILLION ACCOUNT AND THE 8 MILLION GITANO BUSINESS MILLER BREWING CO MILWAUKEE FAILED TO WIN A TEMPORARY RESTRAINING ORDER AGAINST RIVAL ANHEUSERBUSCH COS THAT WOULD HAVE KEPT BUD DRY COMMERCIALS WITH THE PHRASE LESS FILLING BEER WITH A LOT MORE TASTE OFF THE AIR MILLER A UNIT OF PHILIP MORRIS COS SAID IN A FEDERAL TRADEMARKINFRINGEMENT SUIT FILED IN MILWAUKEE EARLIER THIS YEAR THAT THE BUD DRY SLOGAN INFRINGES ON THE SLOGAN FROM THE LONGRUNNING MILLER LITE CAMPAIGN TASTES GREAT LESS FILLING MILLER SAYS IN ITS SUIT THAT ANHEUSER'S USE OF THE SLOGAN IS UNFAIR BECAUSE IT CREATES THE IMPRESSION THAT BUD DRY IS MADE BY MILLER BREWING ANHEUSER TRUMPETED THE DECISION ISSUING A STATEMENT THAT SAID IN PART MILLER FAILS TO MUZZLE BUD DRY AND DECLINING TO COMMENT FURTHER BUT MILLER SAID IT WAS PLEASED WITH THE DECISION BECAUSE IT RESTRICTS ANHEUSER FROM USING THE PHRASE IN PRINT OR AS A TAG LINE 9303240097 930324 AIRLINES' PLANS TO REVITALIZE INDUSTRY LIKELY TO BE EXAMINED IN WAKE OF BILL BY BRUCE INGERSOLL AND BRIDGET O'BRIAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON A NEW COMMISSION TO LOOK INTO COMMERCIAL AVIATIONS'S PROBLEMS AUTHORIZED YESTERDAY BY CONGRESS WILL FOCUS ON A SPATE OF SUGGESTIONS FOR REINVIGORATING THE AIRLINE INDUSTRY AMR CORP'S AMERICAN AIRLINES IS CALLING FOR A GOVERNMENTGUARANTEED LOAN PROGRAM DESIGNED TO FINANCE THE PHASEOUT OF OLDER NOISIER JETLINERS NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC IS URGING CONGRESS AND THE CLINTON ADMINISTRATION TO CONSIDER AN UNORTHODOX PROPOSAL TO LIGHTEN THE INDUSTRY'S TAX BURDEN AT THE SAME TIME LABOR UNIONS AIRPORT INTERESTS AND AIRLINES ARE JOCKEYING FOR SEATS ON THE BIPARTISAN COMMISSION TO ENSURE THAT THEY EACH HAVE A VOICE IN DELIBERATING THE INDUSTRY'S FUTURE THE AIRLINECOMMISSION BILL CLEARED THE HOUSE YESTERDAY BY VOICE VOTE PRESIDENT CLINTON COULD SIGN THE LEGISLATION AND APPOINT HIS FIVE REPRESENTATIVES ON THE 15MEMBER COMMISSION AS EARLY AS NEXT WEEK THE SENATE AND HOUSE EACH GET TO NAME THREE DEMOCRATS AND TWO REPUBLICANS IN ADDITION THERE ARE 11 NONVOTING MEMBERS FIVE NAMED BY THE HOUSE FIVE BY THE SENATE AND ONE BY THE PRESIDENT CONGRESSIONAL LEADERS AND THE WHITE HOUSE ARE COUNTING ON THE COMMISSIONERS TO SET ASIDE THEIR PARTISAN AND CORPORATE DIFFERENCES AND COMPROMISE ON A PLAN TO REVIVE AN INDUSTRY THAT HAS LOST MORE THAN 10 BILLION SINCE 1989 THE PANEL THE NATIONAL COMMISSION TO ENSURE A COMPETITIVE AIRLINE INDUSTRY WILL ADDRESS A VARIETY OF ISSUES INCLUDING THE AEROSPACE INDUSTRY'S DEEPENING SLUMP PRICING PRACTICES FOREIGN INVESTMENT IN US AIRLINES AIRPORT CONGESTION AIR TRAFFIC CONTROL DELAYS AND EXCESS CAPACITY IN AIRLINE FLEETS ONE NEW PROPOSAL CERTAIN TO BE CONSIDERED COMES FROM ROBERT L CRANDALL AMR CORP CHAIRMAN AT A SESSION LAST WEEK WITH CORPORATE TRAVEL MANAGERS IN NEW YORK MR CRANDALL SUGGESTED LETTING AIRLINES BUY NEW AIRCRAFT WITH LOAN GUARANTEES BACKED UP BY TAX DOLLARS IN THE AVIATION TRUST FUND THE PROGRAM WOULD HELP CARRIERS PHASE OUT THEIR SOCALLED STAGE2 JETS TO MEET FEDERAL NOISEREDUCTION REQUIREMENTS BY THE END OF THE DECADE AND DEAL WITH THEIR OVERCAPACITY PROBLEMS AS WELL TO QUALIFY MR CRANDALL SAID EACH CARRIER WOULD HAVE TO RETIRE TWO SEATS IN AN OLDER NOISIER JET FOR EVERY NEW SEAT IT ADDS HE ALSO WOULD LINK ELIGIBILITY FOR GUARANTEED LOANS TO SEATING CAPACITY RESULT AMERICAN AIRLINES THE LARGEST US CARRIER WOULD BENEFIT THE MOST CURRENTLY THE AVIATION TRUST FUND CONSISTING OF AIRLINE TICKETTAX COLLECTIONS HAS A 7 BILLION SURPLUS IT'S A NOTION IT'S A FLAG WE'VE RUN UP SAID AN AMR SPOKESMAN IF EVERY US CARRIER WERE TO PARTICIPATE IN THE LOANGUARANTEE PROGRAM INDUSTRYWIDE CAPACITY WOULD BE CUT 15 HE ADDED CLARK ONSTAD A WASHINGTON AVIATION LAWYER IS PUSHING A DIFFERENT APPROACH TO THE EXCESS CAPACITY PROBLEM LETTING AIRLINES SELL THEIR EXCESS JETS TO RUSSIA AND CHINA WITH EXPORTIMPORT BANK FINANCING THOSE COUNTRIES NEED LIFT AND THE US CARRIERS NEED A WAY TO GET RID OF THOSE PLANES AND THEY'D GET CASH RIGHT AWAY FROM THE EXIM BANK HE SAID MEANWHILE JOHN DASBURG PRESIDENT OF NORTHWEST AIRLINES IS CALLING FOR A TAX CHANGE THAT WOULD LET THE AIRLINES USE FUTURE INCOME TAX CREDITS RIGHT NOW TO REDUCE THEIR CURRENT EXCISE TAX LOAD LAST YEAR NORTHWEST PAID 3914 MILLION IN EXCISE TAXES INCLUDING AIRLINE TICKET TAXES UNDER MR DASBURG'S PLAN NORTHWEST COULD CARRY FORWARD ITS NET OPERATING LOSSES FROM UNPROFITABLE YEARS TO OFFSET THE EXCISE TAXES IT NOW OWES RATHER THAN WAIT UNTIL IT RETURNS TO PROFITABILITY TO USE SOCALLED TAXLOSS CARRY FORWARDS SEVERAL AIRLINES ALSO ARE ADVOCATING THAT THE GOVERNMENT SHOULD ASSUME THE AIRLINES' COSTS FOR AIRPORT SECURITY IT'S AN EXPENSE FOR THE PUBLIC IT OUGHT TO BE PAID FOR BY THE PUBLIC SAID MR ONSTAD HEALTHY CARRIERS HAVE BEEN PRESSING FOR CHANGES IN THE BANKRUPTCY LAW TO LIMIT HOW LONG INSOLVENT AIRLINES CAN OPERATE WITH CHAPTER 11 PROTECTION FROM CREDITORS BUT IN A SPEECH YESTERDAY TO AIRPORT EXECUTIVES REP NORMAN MINETA CHAIRMAN OF THE HOUSE PUBLIC WORKS COMMITTEE SOUGHT TO LOWER THEIR EXPECTATIONS THE BANKRUPTCY CODE IS NOT GOING TO BE MADE TO OPERATE IN ANY SIGNIFICANTLY DIFFERENT WAY FOR THE AIRLINE INDUSTRY THAN FOR ALL OTHERS THE CALIFORNIA DEMOCRAT SAID CHANGING THE CODE FOR ALL INDUSTRIES WILL BE A VERY SLOW AND DIFFICULT PROCESS IT COULD TAKE A DECADE HE ADDED 9303240096 930324 REVIEW & OUTLOOK EDITORIAL TOUGH TURNAROUND YOU THINK TURNING AROUND IBM IS GOING TO BE TOUGH HA WE'VE GOT A TURNAROUND CHALLENGE THAT ALL THE KING'S HORSES AND ALL THE KING'S MEN COULDN'T FIX BUT THEY'RE WORKING ON IT IT'S THE UNITED NATIONS ARGUABLY THE WORLD'S MOST FAMOUS FAT BUREAUCRACY EARLIER THIS MONTH DICK THORNBURGH WHO IS DEPARTING HIS POST AS UN UNDERSECRETARYGENERAL FOR ADMINISTRATION AND MANAGEMENT RELEASED A REPORT THAT PORTRAYS NOTHING LESS THAN A 10000PERSON HOUSE OF BUREAUCRATIC HORRORS WE OFFER A SHORT TOUR OF THIS SCARY PLACE BASED ON EVIDENCE FROM GOVERNOR THORNBURGH AND INDEPENDENT SOURCES DON'T FAINT NEVERNEVER LAND PLANNING MOSCOW DOESN'T DO IT BUT THE UN STILL BUDGETS ON A COMMUNISTSTYLE SIXYEAR PLAN THE GOVERNOR CALLS THIS FORMAT SIMPLY USELESS AND DEEMS THE THOUSANDS OF STAFF HOURS DEVOTED TO THIS PROCESS AS A GROSS MISALLOCATION OF SCARCE RESOURCES BUDGETARY WATER SLIDE IN A BUDGET OF ABOUT 2 BILLION THE UN ITEMIZES 33000 INDIVIDUAL PROJECTS THAT MEANS MEMBERS SPEND AN AVERAGE OF 18 SECONDS ON THEIR CONSIDERATION OF EACH INDIVIDUAL EXPENDITURE IN SHORT NO THOUGHT AT ALL FUNNY MIRROR PERSONNEL POLICIES THE 10000 PEOPLE AT THE SECRETARIAT AND OTHER PARTS OF THE UN WORK IN AN ENVIRONMENT THAT DOES LITTLE TO REFLECT IN FACT DISTORTS THE QUALITY OF THEIR WORK OF THAT 10000 ONLY THREE HAVE BEEN FIRED OVER THE PAST FIVE YEARS FOR POOR PERFORMANCE IT'S ALSO HOWEVER ALMOST IMPOSSIBLE TO GET A PROMOTION GRADEINFLATION IS RAMPANT SOME 80 TO 90 OF STAFFERS GET THE EQUIVALENT OF AN A OR B ON THEIR PERFORMANCE REVIEWS TO HIRE A PROFESSIONALRANK PERSON AT THE UN IT TAKES A MANAGER 367 DAYS OF PAPER PUSHING TO CLASSIFY ITS EMPLOYEES THE UN MAINTAINS 4200 SEPARATE JOB DESCRIPTIONS A MULTITUDE THAT HINDERS EFFICIENT ALLOCATION OR TRANSFER OF STAFF COMPARE THAT FIGURE WITH SAY BLUE CROSSBLUE SHIELD WHICH RECENTLY REDUCED ITS JOB DESCRIPTION CLASSES TO 40 FROM 1500 THE AFFIRMATIVE ACTION SHOOTOUT THE UN RECENTLY SET THE GOAL OF MAKING 50 OF ITS WORK FORCE WOMEN BY 1995 THE YEAR OF ITS 50TH ANNIVERSARY GOOD LUCK THAT GOAL CONFLICTS WITH A MORE TIMEHONORED AFFIRMATIVE ACTION TRADITION AT THE UN GEOGRAPHIC QUOTAS THE BUREAUCRATS CONDUCTING THE GENDER SEARCH FOR PROFESSIONALS FROM THE MUSLIM COUNTRIES ALAS FOUND PRECIOUS FEW WOMEN CANDIDATES THE THORNBURGH REPORT DELICATELY TERMS THE PROBLEM POCKETS OF CULTURAL PREJUDICE THE FEATHERBED CHAMBER UN ORGANIZATIONS ARE FAMOUS FOR PROTECTING THEIR EMPLOYEES THE SECRETARIAT FOR EXAMPLE TWICE BACKED ITS PRINTSHOP UNIONISTS AND OUSTED TWO REFORMMINDED MANAGERS FROM THE DEPARTMENT BUT THE PRIZE FOR MAKEWORK GOES TO THE OFFICE OF CONFERENCE SERVICES WHICH EMPLOYS SOME 500 TYPISTS TO TRANSCRIBE FOR EDITING THE DICTATION OF TRANSLATORS IN OTHER NONUN SETTINGS THE REPORT NOTES TRANSLATORS DO THEIR OWN WORD PROCESSING ON TYPEWRITERS OR COMPUTERS NET CASH WASTED BY THIS PROBLEM ALONE 20 MILLION HAD ENOUGH GOVERNOR THORNBURGH SAYS ONE OF THE MOST IMPORTANT MOVES TOWARD REFORMING THE BULGING SECRETARIAT IS TO CREATE THE POSITION OF INSPECTOR GENERAL TO PROVIDE OVERSIGHT OTHERWISE THE BUREAUCRATS WILL JUST RUN THE PLACE THE WAY THEY RUN THEIR NON COMPOS GOVERNMENTS BACK HOME IT'S TRUE THAT PEACEKEEPING IS NOT WELLFUNDED THE BUDGET OF SAUDI ARABIA FOR EXAMPLE ARGUABLY ONE OF THE BIGGEST BENEFICIARIES OF THE UN'S FIRST BIG POSTCOLD WAR EFFORT FAVORS NATIONAL MILITARY SPENDING OVER PEACEKEEPING CONTRIBUTIONS AT A RATIO OF 15204TOONE THE US RATIO IS 2016TOONE THE VOLCKEROGATA REPORT NOTES THAT EVEN IN AN ACTIVE YEAR LIKE 1992 THE SUM BUDGET FOR THE UN'S REGULAR AND INTERNATIONAL 911STYLE ACTIVITIES WAS LESS THAN THE COMBINED OPERATION COST OF NEW YORK CITY'S ACTUAL 911 TEAM THE FIRE AND POLICE DEPARTMENTS AS THE GULF WAR SHOWED THE UN CAN SERVE AS A VEHICLE FOR MULTILATERALISM IF SOMEONE IS IN A STRONG LEADERSHIP ROLE AND FEW SERIOUS PEOPLE THINK MORE THAN ONE COUNTRY QUALIFIES TO QUELL THIS ERA'S VIOLENT NATIONALISM THE UN'S PEACEMAKERS AND PEACEKEEPERS COULD PROVE HELPFUL BUT FOR THAT TO HAPPEN THE ORGANIZATION NEEDS TO CLEAN UP ITS HOUSE OF BUREAUCRATIC HORRORS ABSENT THAT MUCH OF WHAT THE UN SAYS AND DOES WILL LACK CREDIBILITY AND SUPPORT 9303240095 930324 CREDIT RATINGS ALCO STANDARD CORP VALLEY FORGE PA STANDARD & POOR'S CORP PLACED 150 MILLION OF THIS PAPER AND OFFICE PRODUCTS CONCERN'S DEBT ON CREDITWATCH WITH NEGATIVE IMPLICATIONS CITING A RECENT ACQUISITION THAT COULD WEAKEN ALCO'S CREDIT QUALITY AFFECTED ARE ALCO'S SINGLEA SENIOR DEBT RATING SINGLEAMINUS PREFERRED STOCK RATING AND A1 COMMERCIAL PAPER RATING S&P'S ACTION FOLLOWS ALCO'S RECENT ANNOUNCEMENT THAT IT INTENDS TO ACQUIRE BUTLER PAPER CO FROM GEORGIAPACIFIC CORP FOR ABOUT 150 MILLION 9303240094 930324 WHO'S NEWS HCA CHAIRMAN'S 1992 COMPENSATION HIT 127 MILLION DUE TO STOCK OPTIONS BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL THE CHAIRMAN AND CHIEF EXECUTIVE OF HCAHOSPITAL CORP OF AMERICA THOMAS FRIST RECEIVED 127 MILLION IN COMPENSATION LAST YEAR INCLUDING 1259 MILLION FROM EXERCISED STOCK OPTIONS ACCORDING TO THE COMPANY'S PROXY STATEMENT DR FRIST WAS ONE OF FIVE HCA EXECUTIVES WHO RECEIVED A TOTAL OF 1673 MILLION IN COMPENSATION IN 1992 AS THEY RACED TO EXERCISE STOCK OPTIONS TO AVOID TAX INCREASES EXPECTED THIS YEAR THE OPTIONS HAD BEEN AWARDED TO THE EXECUTIVES IN 1989 WHEN HCA WENT PRIVATE IN A 51 BILLION LEVERAGED BUYOUT JOSEPH DILORENZO HCA'S SENIOR VICE PRESIDENTWESTERN GROUP OPERATIONS RECEIVED 12 MILLION IN COMPENSATION IN 1992 INCLUDING 116 MILLION FROM EXERCISED STOCK OPTIONS DONALD FISH SENIOR VICE PRESIDENT SECRETARY AND GENERAL COUNSEL RECEIVED 105 MILLION INCLUDING 102 MILLION IN EXERCISED OPTIONS JACK BOVENDER EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER RECEIVED 10 MILLION INCLUDING 96 MILLION IN EXERCISED OPTIONS PAUL MCKNIGHT SENIOR VICE PRESIDENTFLORIDA GROUP OPERATIONS RECEIVED 78 MILLION INCLUDING 75 MILLION IN EXERCISED OPTIONS DR FRIST THE PHYSICIAN WHO FOUNDED HCA RECEIVED A 1992 SALARY OF 600000 AND A BONUS OF 486000 IN 1991 HE GOT A SALARY OF 600000 AND A BONUS OF 585000 HIS TOTAL COMPENSATION FOR THE YEAR AFTER THE PRESIDENTIAL ELECTION LAST FALL A NUMBER OF CORPORATE CHIEFS RUSHED TO EXERCISE OPTIONS FOR TWO REASONS THEN PRESIDENTELECT CLINTON SAID HE MIGHT ELIMINATE TAX BREAKS GRANTED TO CORPORATIONS FOR COMPENSATION TO TOP EXECUTIVES IN EXCESS OF 1 MILLION MR CLINTON ALSO SAID HE PLANNED TO RAISE TAXES ON THE VERY WEALTHY THUS BY EXERCISING THEIR OPTIONS BEFORE DEC 31 THE HCA EXECUTIVES SAVED MONEY FOR THEIR COMPANY AND FOR THEMSELVES HCA BASED IN NASHVILLE TENN ESTIMATES THE OFFICERS SAVED THE HOSPITAL CONCERN CLOSE TO 50 MILLION NEITHER DR FRIST NOR MR BOVENDER HAS SOLD ANY SHARES OF THE STOCK AN HCA SPOKESMAN SAID THE SPOKESMAN SAID THE THREE OTHERS SOLD SMALL AMOUNTS OF SHARES INVESTMENT RISKS CITED HCA WENT PUBLIC IN FEBRUARY 1992 AT 2150 A SHARE AT THE TIME OF THE LEVERAGED BUYOUT ACCORDING TO THE COMPANY DR FRIST INVESTED 33 MILLION HIS ENTIRE NET WORTH IN HCA WHILE THE FOUR OTHER EXECUTIVES INVESTED HALF OF THEIR NET WORTHS THAT WAS A HUGE RISK WE ALL TOOK DR FRIST SAID IN AN INTERVIEW I PUT UP 33 MILLION OF MY MONEY WHICH MADE OUR SHAREHOLDERS BILLIONS OF DOLLARS BUT I COULD HAVE LOST THAT MONEY DR FRIST SAID HE BORROWED 45 MILLION TO EXERCISE HIS OPTION AND PURCHASE THE SHARES STILL THE TIMING OF THE PAYOUT MAY HAVE SOME PUBLICRELATIONS RAMIFICATIONS SOME ANALYSTS SPECULATED WITH ALL THE TALK ABOUT HEALTHCARE REFORM PEOPLE MIGHT SAY THIS IS WHY PRICES ARE OUT OF CONTROL SAID EDWARD MALLY OF SALOMON BROTHERS THE 127 MILLION PAID TO DR FRIST WILL PUT HIM NEAR THE TOP OF THE PAY LIST FOR CORPORATE EXECUTIVES FOR 1992 MR MALLY SAID FOR 1992 HCA REPORTED EARNINGS OF 281 MILLION OR 16 CENTS A SHARE ON REVENUE OF 51 BILLION HCA EASED 125 CENTS TO 17375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9303240093 930324 WHO'S NEWS SOLECTRON CORP SOLECTRON CORP MILPITAS CALIF PAUL R LOW PRESIDENT OF PRL ASSOCIATES WAS ELECTED A DIRECTOR OF THIS PROVIDER OF MANUFACTURING SERVICES FOR THE COMPUTER INDUSTRY BRINGING BOARD MEMBERSHIP TO SEVEN 9303240092 930324 INTERNATIONAL MALAYSIA HAD '92 TRADE SURPLUS KUALA LUMPUR MALAYSIA HAD A TRADE SURPLUS OF 1782 BILLION MALAYSIAN DOLLARS US6864 MILLION IN 1992 COMPARED WITH A DEFICIT OF M6334 BILLION IN 1991 THE STATISTICS DEPARTMENT SAID EXPORTS ROSE TO M103487 BILLION FROM M94496 BILLION WHILE IMPORTS GAINED TO M101704 BILLION FROM M100831 BILLION THE INCREASE IN EXPORTS CAME MAINLY FROM A 169 INCREASE IN THE VALUE OF EXPORTS OF MACHINERY AND TRANSPORT EQUIPMENT AND MISCELLANEOUS MANUFACTURED ARTICLES THE DEPARTMENT SAID 9303240091 930324 LEVITT'S CHANCES TO HEAD SEC ARE SEEN BOLSTERED AS DINGELL AIDE IS RULED OUT BY KENNETH H BACON AND MARY LU CARNEVALE STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON IN A MOVE THAT APPEARS TO STRENGTHEN THE CHANCES THAT ARTHUR LEVITT JR WILL BECOME THE NEXT CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION THE CLINTON ADMINISTRATION OFFICIALLY INFORMED CONSUELA WASHINGTON THAT SHE IS NO LONGER IN THE RUNNING FOR THE POST MS WASHINGTON A TOP AIDE TO REP JOHN DINGELL THE MICHIGAN DEMOCRAT WHO HEADS THE HOUSE ENERGY AND COMMERCE COMMITTEE WAS ONCE THE LEADING CANDIDATE FOR THE POST BUT IN RECENT WEEKS MR LEVITT THE FORMER CHAIRMAN OF THE AMERICAN STOCK EXCHANGE HAS EMERGED AS THE FRONTRUNNER ACCORDING TO WHITE HOUSE OFFICIALS EVEN THOUGH WHITE HOUSE OFFICIALS SAY HE'S CURRENTLY THEIR FAVORITE MR LEVITT SAID YESTERDAY THAT HE HASN'T BEEN APPROACHED ABOUT THE JOB BY ANYONE IN THE WHITE HOUSE ASKED IF HE HAD HEARD ANYTHING OFFICIAL FROM THE ADMINISTRATION HE SAID ABSOLUTELY NOT HOWEVER MR LEVITT IS WELL POSITIONED FOR THE JOB HE IS WELL KNOWN ON WALL STREET AND IN THE AMERICAN BUSINESS CONFERENCE A COALITION OF RAPIDLY GROWING COMPANIES IN ADDITION HE HELPED RAISE MONEY FOR THE CLINTON CAMPAIGN AND OWNS A NEWSPAPER CALLED ROLL CALL WHICH IS WIDELY READ BY MEMBERS OF CONGRESS AND THEIR STAFFS AS A MEMBER OF THE MILITARYBASE CLOSINGS COMMISSION HE HAS RECENTLY FILED VOLUMINOUS FINANCIAL AND OTHER DISCLOSURE STATEMENTS WITH THE FEDERAL BUREAU OF INVESTIGATION MS WASHINGTON'S PLIGHT BOOSTS THE PROSPECTS OF ANTOINETTE COOK TO BECOME CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION ACCORDING TO A SENIOR WHITE HOUSE OFFICIAL BOTH WOMEN ARE HIGHLY REGARDED CONGRESSIONAL STAFFERS WHO ARE CONSIDERED EXTREMELY CAPABLE BY THE WHITE HOUSE AS BLACK WOMEN THEY BOTH FIT WELL WITH THE CLINTON ADMINISTRATION'S COMMITMENT TO DIVERSITY IN ITS NOMINATIONS AND THE WHITE HOUSE ISN'T LIKELY TO REJECT BOTH MS COOK 36 YEARS OLD IS SENIOR COUNSEL FOR THE SENATE COMMUNICATIONS SUBCOMMITTEE SHE HAS BEEN CONSIDERED A LEADING CANDIDATE FOR MONTHS MS COOK PLAYED A KEY ROLE IN LAST YEAR'S PASSAGE OF A BILL TO REREGULATE THE CABLETELEVISION INDUSTRY AND SPUR NEW CABLE COMPETITORS SHE HAS A REPUTATION FOR WORKING WELL WITH IMPORTANT LAWMAKERS PARTICULARLY HER BOSSES SEN DANIEL INOUYE D HAWAII WHO HEADS THE COMMUNICATIONS SUBCOMMITTEE AND COMMERCE COMMITTEE CHAIRMAN ERNEST HOLLINGS D SC MS COOK SAYS SHE HASN'T BEEN INTERVIEWED FOR THE FCC JOB SHE IS THE STEPDAUGHTER OF VERNON JORDAN MR JORDAN WAS THE CLINTON TRANSITION DIRECTOR AND IS ON THE BOARD OF DOW JONES & CO WHICH PUBLISHES THE WALL STREET JOURNAL SOME PEOPLE ARE RAISING QUESTIONS ABOUT A 1987 TRANSACTION IN WHICH SHE PARTICIPATED AT THAT TIME A PARTNERSHIP TO WHICH SHE BELONGED ACCEPTED A HEFTY PAYMENT TO WITHDRAW AN APPLICATION TO THE FCC FOR A RADIO LICENSE THE LICENSE FOR WGMSFM IN WASHINGTON WAS HELD BY RKO GENERAL INC WHICH WAS BEING FORCED TO SELL ITS STATIONS MS COOK EMPHASIZES THAT SHE AND HER PARTNERS WANTED TO OWN AND RUN WGMS BUT WERE FORCED BY THE FCC TO ENTER INTO SETTLEMENT NEGOTIATIONS HER PORTION OF THE SETTLEMENT WHICH INVOLVED EIGHT COMPETING APPLICANTS AMOUNTED TO 556500 THE FCC NO LONGER ALLOWS SUCH BUYOUTS OF COMPETING APPLICANTS MS COOK WORKED AT A WASHINGTON LAW FIRM AT THE TIME THE CHARGE IS REALLY BOGUS SAID ANDREW JAY SCHWARTZMAN HEAD OF THE MEDIA ACCESS PROJECT A WASHINGTONBASED PUBLIC INTEREST LAW FIRM AT THE TIME HER LAWYERS EXPRESSED FRUSTRATION AT BEING COERCED INTO A SETTLEMENT MOREOVER HE SAID MS COOK IS AN OBVIOUS CHOICE SHE KNOWS THE FIELD AND THE PLAYERS AND HAS SUPERIOR RELATIONSHIPS WITH KEY LAWMAKERS GIVEN THE TENSION BETWEEN THE FCC AND CONGRESS OVER THE PAST DECADE SHE WOULD BE A TERRIFIC ASSET MICHAEL K FRISBY CONTRIBUTED TO THIS ARTICLE 9303240090 930324 BALL CORP SETS DATE FOR SPINOFF MUNCIE IND BALL CORP SET APRIL 2 AS THE EFFECTIVE DATE OF ITS SPINOFF OF ALLTRISTA CORP ANNOUNCED IN AUGUST BALL HOLDERS OF RECORD AS OF THE CLOSE OF BUSINESS THAT DAY WILL RECEIVE ONE ALLTRISTA SHARE FOR EACH FOUR SHARES OF BALL STOCK THEY OWN SHARES OF ALLTRISTA WILL BEGIN TRADING ON A WHENISSUED BASIS TODAY ON THE NASDAQ NATIONAL MARKET SYSTEM UNDER THE TICKER SYMBOL JARS BALL SAID DELIVERY OF STOCK CERTIFICATES WILL BEGIN APRIL 5 BALL MAKES GLASS AND METAL CONTAINERS FOR FOOD AND BEVERAGES THE NEW COMPANY WILL CONSIST OF SEVEN NONCORE BUSINESSES WHICH HAD COMBINED SALES LAST YEAR OF 2686 MILLION WILLIAM L PETERSON FORMERLY BALL'S VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER SERVES AS ALLTRISTA'S PRESIDENT AND CHIEF EXECUTIVE 9303240089 930324 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH FASTER VALIDATION IS OFFERED FOR NONCASH TRANSACTIONS AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK UNVEILED A FASTER NATIONWIDE TOLLFREE DATA SERVICE THAT ENABLES BUSINESSES TO ELECTRONICALLY AUTHORIZE CONFIRM OR VALIDATE TRANSACTIONS AT&T'S INTERSPAN TRANSACTION ACCESS SERVICE USES A 950 PREFIX TO CONNECT POINTOFSALE TERMINALS AND COMPUTER DATABASES FOR BUSINESSES THAT PERFORM NONCASH TRANSACTIONS BY RUNNING PLASTIC CARDS WITH MAGNETIC STRIPES THROUGH READERS OR BY OTHER ELECTRONIC MEANS AT&T SAID THE NEW SERVICE WILL CUT THE TRANSACTION TIME TO 10 SECONDS FROM THE CURRENT 15 TO 17 SECONDS A SPOKESMAN SAID IT IS CURRENTLY IN A CONTROLLED INTRODUCTION STAGE AND WILL BE GENERALLY AVAILABLE NEXT MONTH 9303240088 930324 WHAT'S NEWS BUSINESS AND FINANCE IBM IS PREPARING TO NAME LOUIS GERSTNER RJR NABISCO'S CHAIRMAN TO BE THE COMPUTER GIANT'S CEO AN ANNOUNCEMENT COULD COME NEXT WEEK BUT IBM MAY STILL NOT HAVE REACHED A FINAL AGREEMENT WITH GERSTNER HIRING HIM WOULD AMOUNT TO A DECISION THAT IBM'S PROBLEMS CAN BE SOLVED BY BETTER MANAGEMENT WITHOUT A NEW TECHNOLOGICAL VISION GERSTNER'S EXPECTED DEPARTURE WOULD LEAVE RJR NABISCO SEARCHING FOR A NEW CEO AT A CRITICAL TIME CLINTON ASSAILED JAPAN FOR KEEPING ITS MARKETS CLOSED TO THE US AND INDICATED HE IS PREPARED TO RAISE TARIFFS ON JAPANESE GOODS SUCH AS MINIVANS UNTIL THE TRADE BARRIERS ARE REDUCED US TRADE OFFICIALS ARE URGING CLINTON TO USE TARIFFS AS A BARGAINING CHIP TO OBTAIN CONCESSIONS FROM JAPAN A SENATE PANEL APPROVED CLINTON'S 16 BILLIONPLUS SPENDING PROGRAM TO AID THE ECONOMY AS THE WHITE HOUSE MOVED TO SHORE UP THE PLAN'S SUPPORT MEANWHILE SOME LAWMAKERS QUESTIONED THE WISDOM OF THE PRESIDENT'S PROPOSED INVESTMENT TAX CREDITS THE IRS BACKED AWAY FROM A 1989 PROPOSAL TO LIMIT THE ABILITY OF COMPANIES TO TAKE TAX DEDUCTIONS FOR RESEARCH AND DEVELOPMENT EXPENSES MERCK INTENDS TO REDUCE ITS STAFF BY 1000 PEOPLE OR 26 THE DRUG MAKER PREDICTED ITS 1993 PROFIT WILL BE AT THE LOW END OF ANALYSTS' EXPECTATIONS THE COMPANY CITED COMPETITIVE PRESSURES AND WORLDWIDE HEALTHCOST CONTROLS CHASE MANHATTAN IS SOLICITING BIDS ON 300 MILLION IN BAD REAL ESTATE LOANS TO TEST THE MARKET BEFORE DECIDING WHETHER TO SELL THE REST OF ITS 32 BILLION COMMERCIAL REAL ESTATE PORTFOLIO OPEC HAS REINED IN ITS RUNAWAY OIL PRODUCTION DESPITE CHEATING BY SOME MEMBERS ON THEIR MARCH QUOTAS ACCORDING TO INDEPENDENT ESTIMATES THE OUTPUT REDUCTION COULD PROVIDE SOME SUPPORT TO WEAK PETROLEUM MARKETS OIL FUTURES PRICES CLIMBED YESTERDAY HOECHST'S CHAIRMAN SAID THE GERMAN CHEMICAL AND DRUG CONCERN IS SEEKING TO MARKET ITS ABORTION PILL RU486 IN THE US VIA A THIRD PARTY PROBABLY ANOTHER GERMAN COMPANY HOECHST'S CHAIRMAN CITED THE CLINTON ADMINISTRATION'S SUPPORT FOR THE PILL MCDONALD'S IS TESTMARKETING A BIGGER HAMBURGER MADE WITH 53 OUNCES OF MEAT AS PART OF THE CHAIN'S EFFORT TO INCREASE ITS DINNER BUSINESS THE COMPANY HAS PUT ON HOLD PLANS TO BUILD A DINNER MENU AROUND PIZZA THE FCC'S ACTING CHAIRMAN SAID THE THREE BIG TELEVISION NETWORKS ARE CLOSE TO BEING FREED FROM RULES THAT BLOCK THEM FROM THE RERUN BUSINESS CORN AND SOYBEAN PRICES ROSE IN THE WAKE OF A PROMISE BY CLINTON TO UNVEIL AN AID PACKAGE FOR RUSSIA IN TIME FOR AN APRIL SUMMIT WITH YELTSIN THE FDIC SLASHED ITS PROJECTION FOR BANK FAILURES THIS YEAR IN A SIGN THAT THE WORST OF THE BANK CRISIS IS OVER BUT THE AGENCY DIDN'T LOWER THE PREMIUMS THAT BANKS PAY FOR DEPOSIT INSURANCE OPTING INSTEAD TO ACCELERATE THE RECAPITALIZATION OF THE INSURANCE FUND LOTUS IS INTRODUCING NEW VERSIONS OF ITS HOTSELLING NOTES COMMUNICATION AND DATABASE SOFTWARE THAT WILL RUN ON NEARLY ALL DESKTOP COMPUTER DESIGNS SYNERGEN PLANS TO CONDUCT ANOTHER TRIAL OF ITS DRUG FOR BLOOD POISONING AFTER THE FIRST ONE FAILED TO SHOW CONVINCINGLY THAT THE DRUG SAVES LIVES SYNERGEN STOCK FELL 13 OR 175 TO 11375 CENTERIOR ENERGY IS REDUCING ITS STAFF BY 1200 PEOPLE OR 14 THE OHIO UTILITY COMPANY IS LOOKING AT OTHER WAYS TO CUT COSTS AND LIFT REVENUE BRITISH AND GERMAN STOCKS FELL FURTHER AMID CONTINUED POLITICAL TURMOIL IN RUSSIA TOKYO SHARES DECLINED ON PROFITTAKING TRIGGERED BY THE RUSSIAN UNCERTAINTY AND A RESURGENT YEN THE NIKKEI INDEX FELL 29277 TO 1849162 BONDS LEHMAN BROTHERS TREASURY INDEX 507108 UP 1635 COMMODITIES OIL 2003 A BARREL UP 27 CENTS DOW JONES FUTURES INDEX 13015 OFF 118 SPOT INDEX 12685 UP 022 DOLLAR 11595 YEN UP 032 16305 MARKS OFF 00075 9303240087 930324 OPEC CUTS DOWN RUNAWAY OUTPUT DESPITE CHEATING BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAS REINED IN RUNAWAY OIL PRODUCTION DESPITE CHEATING BY SOME MEMBERS ON THEIR MARCH QUOTAS THE LATEST ESTIMATES BY INDEPENDENT MONITORS OF OPEC'S OUTPUT CONFIRM THAT SO FAR THIS MONTH OUTPUT IS WELL BELOW FEBRUARY'S 254 MILLION BARRELS A DAY WHICH HAD BEEN THE HIGHEST RATE SINCE 1980 OPEC IS ON TRACK FOR A CUT OF AT LEAST ONE MILLION BARRELS A DAY FOR MARCH SAID CONRAD GERBER PRESIDENT OF PETROLOGISTICS LTD A GENEVA FIRM THAT USES TANKER TRACKING AND OTHER METHODS TO MEASURE OPEC'S OUTPUT ESTIMATES BY SOME OTHER OPEC MONITORS ALSO SHOW MARCH PRODUCTION TO BE DOWN SHARPLY PETROLEUM ARGUS A LONDONBASED INDUSTRY PUBLICATION REPORTED THAT THE MONTH'S PRODUCTION IS EXPECTED TO AVERAGE JUST OVER 24 MILLION BARRELS A DAY PETROLEUM FINANCE CO BASED IN WASHINGTON ESTIMATED MARCH OUTPUT AT SLIGHTLY UNDER 245 MILLION BARRELS A DAY THE CUT IN OUTPUT SHOULD PROVIDE SOME SUPPORT TO WEAK OIL MARKETS ONCE THE PERCEPTION TAKES HOLD THAT OPEC HAS IN FACT MADE MAJOR CUTBACKS YESTERDAY OIL PRICES DID RISE HELPED BY LATE BUYING ON EXPECTATIONS THAT US INVENTORIES OF FUELS MAY HAVE DECLINED LAST WEEK THE FUTURES PRICE OF LIGHT LOWSULFUR CRUDE FOR MAY DELIVERY SETTLED 27 CENTS HIGHER AT 2003 A BARREL STILL THE PRICE GAINS WEREN'T ENOUGH TO OFFSET THE BIG LOSSES ON MONDAY WHEN THE MAY CRUDE CONTRACT PLUNGED 46 CENTS A BARREL ON THE NEW YORK MERCANTILE EXCHANGE IN WHAT TRADERS DESCRIBED AS A TECHNICAL SELLOFF THEN AFTER FUTURES TRADING HAD CLOSED THE AMERICAN PETROLEUM INSTITUTE RELEASED ITS LATEST STATISTICS ON THE US INDUSTRY WHICH SHOWED A MUCH BIGGER DECLINE IN US CRUDE OIL STOCKS THAN HAD BEEN EXPECTED LAST WEEK ACCORDING TO THE API REPORT CRUDE INVENTORIES FELL A SURPRISING 121 MILLION BARRELS FROM THE WEEKEARLIER LEVEL TO 3309 MILLION BARRELS ANALYSTS SAID OIL MARKETS HAVE BEEN EXTREMELY WEAK IN RECENT DAYS BECAUSE MANY OIL TRADERS ARE CONVINCED OPEC CONTINUES TO OVERPRODUCE SOME ANALYSTS SUGGESTED THAT SUCH PERCEPTIONS COMBINED WITH THE BUILDUP OF WORLD OIL INVENTORIES THAT HAD RESULTED FROM OPEC'S HIGH JANUARY AND FEBRUARY PRODUCTION ARE AMONG THE REASONS THE POLITICAL CRISIS IN RUSSIA HAS HAD LITTLE EFFECT ON OIL MARKETS OIL MARKETS DISCOUNTED THE EVENTS IN RUSSIA JUDGING THAT RUSSIAN POLITICS WILL NOT IMPACT OIL OUTPUT NOTED THE ENERGY COMPASS A LONDONBASED INDUSTRY PUBLICATION SO FAR OIL EXPORTS BY RUSSIA WHICH RANKS AMONG THE WORLD'S TOP THREE OIL PRODUCERS HAVE REMAINED SURPRISINGLY BUOYANT AND MR GERBER OF PETROLOGISTICS HAS TURNED UP SOLID EVIDENCE THAT IRAN NIGERIA AND SOME OTHER LEADING OPEC MEMBERS ARE PRODUCING WELL ABOVE THEIR MARCH QUOTAS ALSO MR GERBER SAID TOTAL OPEC PRODUCTION DID JUMP IN THE SECOND WEEK OF MARCH BRIEFLY TO MORE THAN 25 MILLION BARRELS A DAY AFTER THE RELATIVELY LOW VOLUMES OF THE FIRST WEEK THERE WAS AN ENORMOUS SURGE SAID MR GERBER EVEN SO HE SAID THE AVERAGE FOR THE FIRST TWO WEEKS OF MARCH WAS ONLY 243 MILLION BARRELS A DAY MEANWHILE HE SAID INDICATIONS ARE THAT PRODUCTION WAS DOWN AGAIN IN THE THIRD WEEK IT WILL AVERAGE 24 MILLION BARRELS A DAY OR SOMETHING FOR THE MONTH HE SAID 9303240086 930324 INTERNATIONAL BRIEF GRANADA GROUP PLC FIRM BUYS CATERING BUSINESS FROM P&O FOR 5355 MILLION BRITISH TELEVISION AND LEISURE COMPANY GRANADA GROUP PLC SAID IT BOUGHT SUTCLIFFE GROUP A CATERING BUSINESS FROM PENINSULAR & ORIENTAL STEAM NAVIGATION CO FOR 360 MILLION 5355 MILLION GRANADA SAID IT WILL PAY FOR THE ACQUISITION WITH 2116 MILLION FROM ITS EXISTING BANKING FACILITIES AND WITH 1484 MILLION RAISED BY THE PLACEMENT WITH INSTITUTIONAL INVESTORS OF 424 MILLION NEW GRANADA SHARES AT 350 PENCE EACH 520 GRANADA SAID SUTCLIFFE'S 1992 SALES WERE 500 MILLION AND ITS OPERATING PROFIT WAS 291 MILLION NET TANGIBLE ASSETS WERE 492 MILLION AS OF DEC 31 P&O SAID THE PROCEEDS FROM THE SALE WILL CONTRIBUTE TO ITS GENERAL RESOURCES 9303240085 930324 JUDICIAL DISORDER HIGH COURT VAGUENESS ON PUNITIVE DAMAGES LEADS TO LEGAL CHAOS BOTH SIDES OF THE ISSUE CITE A '91 RULING PROMPTING THE JUSTICES TO TRY AGAIN REALLY STUPID VS REALLY MEAN BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT HAS THE LAST WORD ON INTERPRETING THE CONSTITUTION RIGHT NOT NECESSARILY ESPECIALLY WHEN LOWER COURTS CAN'T FIGURE OUT EXACTLY WHAT THE JUSTICES HAVE SAID THE RESULT CAN BE CHAOS IN THE COURTS TAKE THE HIGH COURT'S MARCH 1991 RULING ON PUNITIVE DAMAGES AWARDED IN CIVIL SUITS IT SAID SUCH DAMAGES COULD BE SO UNREASONABLE THEY VIOLATE THE CONSTITUTIONAL GUARANTEE OF DUE PROCESS OF LAW BUT THE COURT COULDN'T AGREE ON WHERE TO DRAW THE LINE THE CASE'S 840000 AWARD AGAINST PACIFIC MUTUAL INSURANCE CO MAY BE CLOSE TO THE LINE JUSTICE HARRY BLACKMUN WROTE FOR THE MAJORITY BUT IT DOES NOT CROSS THE LINE INTO THE AREA OF CONSTITUTIONAL IMPROPRIETY WITH THAT MODEL OF NONCLARITY FOR A GUIDE LOWER COURTS IN SCORES OF CASES HAVE CITED THE PACIFIC MUTUAL CASE BOTH TO AFFIRM HUGE PUNITIVE DAMAGES AND TO LIMIT THEM THE RULINGS HAVE BEEN SO DISPARATE THAT THE SUPREME COURT HAS TAKEN THE UNUSUAL STEP OF AGREEING TO REVISIT THE ISSUE ONLY TWO YEARS AFTER ADDRESSING IT ORAL ARGUMENTS ARE SLATED FOR MARCH 31 THE CASE INVOLVES THE MOST INVENTIVE INTERPRETATION OF THE HIGH COURT'S 1991 WORK WHEREIN WEST VIRGINIA'S SUPREME COURT CLAIMED THE PACIFIC MUTUAL RULING GAVE IT LICENSE TO CREATE TWO CATEGORIES OF DEFENDANTS THE REALLY STUPID AND THE REALLY MEAN REALLY STUPID DEFENDANTS THIS COURT SAID COULD BE HIT WITH PUNITIVE DAMAGES OF UP TO FIVE TIMES THE AMOUNT OF COMPENSATORY AWARDS REALLY MEAN DEFENDANTS THOUGH COULD BE FORCED TO PAY AT A RATIO OF MORE THAN 500TO1 THE WEST VIRGINIA COURT THUS UPHELD A 10 MILLION AWARD IN A LANDTITLE DISPUTE INVOLVING COMPENSATORY DAMAGES OF ONLY 19000 COMPENSATORY AWARDS REIMBURSE A VICTIM'S MEASURABLE LOSSES WHILE PUNITIVE DAMAGES ARE SUPPOSED TO PUNISH OR DETER HARMFUL CONDUCT GEORGIA'S SUPREME COURT ALSO TOOK THE PACIFIC MUTUAL DECISION TO PERMIT HEAVY PUNITIVE DAMAGES IT UPHELD A 13 MILLION PUNITIVE AWARD IN A MEDICALMALPRACTICE CASE WHERE THE COMPENSATORY DAMAGES WERE ONLY 5000 A 260TO1 RATIO BUT JUDGE WILLIS HUNT WHO WROTE THE COURT'S OCTOBER 1991 OPINION CONCEDES IN AN INTERVIEW THAT IT WOULD HAVE BEEN EASY TO GO THE OTHER WAY UNDER THE HIGH COURT'S REASONING WITHOUT BEING SPECIFIC HE OBSERVES THAT SEVERAL STATE COURTS YOU MIGHT SAY HAVE GOTTEN AROUND PACIFIC MUTUAL BUSINESS LAWYERS POINT TO ANOTHER GEORGIA CASE LAST MONTH'S HUGE AWARD BY AN ATLANTA JURY AGAINST GENERAL MOTORS CORP AS AN EXAMPLE OF HOW THE PACIFIC MUTUAL DECISION HAS EXACERBATED AN ATMOSPHERE OF LEGAL CONFUSION AND ARBITRARINESS GM WAS ORDERED TO PAY 105 MILLION TO THE PARENTS OF A BOY WHO DIED IN A PICKUP TRUCK CRASH WITH 101 MILLION OF THE AWARD PUNITIVE GM IS APPEALING BUT THE STATE OF NEARANARCHY RESULTING FROM THE PACIFIC MUTUAL CASE HAS BENEFITED SOME DEFENDANTS IN TEXAS AN INTERMEDIATE STATE APPEALS COURT SLASHED A 15 MILLION PUNITIVE AWARD IN AN INSURANCEFRAUD CASE TO 760000 IN ITS APRIL 1991 DECISION THE COURT ASKED RHETORICALLY IF THE FACTS JUSTIFIED A 15 MILLION AWARD OUR ANSWER IS NO BUT WHY BECAUSE IT JUST IS PUNITIVE DAMAGES HAVE BEEN A FOCUS OF INTENSE DEBATE BUSINESS INTERESTS SAY THEY DISTORT THE CIVIL JUSTICE SYSTEM AND HURT MANUFACTURERS CONSUMER ADVOCATES COUNTER THAT PUNITIVE AWARDS ARE OFTEN THE ONLY WAY TO CHECK CORPORATE WRONGDOING THE PACIFIC MUTUAL CASE WAS INTENDED TO HELP RESOLVE THE ISSUE INSTEAD IT SHOWED HOW A FOGGY SUPREME COURT DECISION CAN LEAD TO REALLY CONFUSING LAW THIS SORT OF THING HAPPENS ALL THE TIME SAYS DENNIS HUTCHINSON A SUPREME COURT EXPERT AT THE UNIVERSITY OF CHICAGO AND THERE IS NO REASON TO THINK IT WILL CHANGE WHEN PRESIDENT CLINTON REPLACES RETIRING JUSTICE BYRON WHITE AND POSSIBLY OTHER AGING MEMBERS OF THE COURT IN TERMS OF MERE COMPETENCE AS OPPOSED TO POLITICS THE COURT LIKE ANY OTHER GOVERNMENT AGENCY SIMPLY FALLS DOWN ON THE JOB SOMETIMES WHEN HE WAS A LAW CLERK TO JUSTICE WHITE IN THE MID1970S MR HUTCHINSON SAYS THE JUSTICES REPEATEDLY FUMBLED CASES ON CAR SEARCHES THEY DREW BAFFLING DISTINCTIONS SUCH AS WHETHER POLICE HAD DISCOVERED CONTRABAND IN SEALED CONTAINERS OR LOOSE IN THE TRUNK MORE RECENTLY THE JUSTICES HAVE BEFUDDLED LOWER COURTS ON THE QUESTION OF WHEN LANDUSE REGULATION VIOLATES PROPERTY RIGHTS FOR VARIOUS REASONS MOST CURRENT MEMBERS OF THE COURT DISPLAY A PREDILECTION FOR NARROW RULINGS THAT DON'T CLARIFY THE LAW IN GENERAL SANDRA DAY O'CONNOR AND DAVID SOUTER PREFER CASEBYCASE THINKING BECAUSE THEY FEAR THAT BROAD PRONOUNCEMENTS MAY HAVE UNANTICIPATED EFFECTS WILLIAM REHNQUIST AND JUSTICE WHITE SAY PEOPLE WHO KNOW THEM HAVE GROWN INCREASINGLY IMPATIENT OVER THE YEARS AND STRESS EFFICIENT DECISION MAKING WITHOUT A LOT OF FUSS OVER REFINING LARGER PRINCIPLES JOHN PAUL STEVENS AND JUSTICE BLACKMUN FAVOR WHAT LAWYERS CALL MULTIFACTOR BALANCING TESTS THESE ARE LEGAL STANDARDS CONSISTING OF LISTS OF RELEVANT CONSIDERATIONS RATHER THAN CLEARCUT RULES ADMIRERS OF JUSTICES BLACKMUN AND STEVENS PRAISE THEIR ATTENTION TO NUANCE DETRACTORS ARGUE THAT JURISTS TRYING TO JUGGLE TOO MANY FACTORS TEND NOT TO DECIDE MUCH WHATEVER ITS POTENTIAL ADVANTAGES THE BALANCING APPROACH PRODUCES PERPLEXITY WHEN IT ISN'T CLEAR WHICH FACTORS ARE MOST IMPORTANT OR HOW THEY SHOULD BE WEIGHED THAT WAS THE CASE WITH PACIFIC MUTUAL THE NEWPORT BEACH CALIF INSURER GOT INTO LEGAL TROUBLE BECAUSE AN AGENT IN BIRMINGHAM ALA POCKETED CUSTOMERS' LIFE INSURANCE PREMIUMS CAUSING THEIR POLICIES TO LAPSE THE CONSUMERS SUED PACIFIC MUTUAL SAYING IT SHOULD BE HELD RESPONSIBLE THEY WON 210000 IN COMPENSATORY DAMAGES PLUS THE 840000 PUNITIVE AWARD THE ALABAMA SUPREME COURT UPHELD THE VERDICT PACIFIC MUTUAL APPEALED TO THE SUPREME COURT ARGUING THAT JURIES IN ALABAMA AND MANY OTHER STATES GET TOO LITTLE GUIDANCE FROM JUDGES IN DECIDING WHEN TO AWARD PUNITIVE DAMAGES AND HOW MUCH TO AWARD THE HIGH COURT RULED 71 AGAINST PACIFIC MUTUAL WITH JUSTICE O'CONNOR DISSENTING AND THENROOKIE JUSTICE SOUTER NOT PARTICIPATING WRITING FOR THE MAJORITY JUSTICE BLACKMUN OBSERVED THAT FOR YEARS THE COURT HAD EXPRESSED CONCERN ABOUT PUNITIVE DAMAGES RUN WILD BUT HAD HESITATED TO TACKLE THE PROBLEM NOW THAT THE ISSUE WAS SQUARELY PRESENTED HOWEVER HE SAID THE CONSTITUTION REQUIRED MERELY THAT TRIAL JUDGES GIVE JURIES ADEQUATE GUIDANCE AND THAT APPEALS COURTS DOUBLECHECK THE REASONABLENESS OF AWARDS JUSTICE BLACKMUN WROTE APPROVINGLY OF SEVEN FACTORS CONSIDERED BY THE ALABAMA COURTS INCLUDING THE EGREGIOUSNESS OF THE DEFENDANT'S CONDUCT AND THE EXISTENCE OF A REASONABLE RELATIONSHIP BETWEEN PUNITIVE DAMAGES AND THE HARM ALMOST AS AN ASIDE HE OBSERVED THAT THE 4TO1 RATIO OF PUNITIVE TO COMPENSATORY DAMAGES ASSESSED AGAINST PACIFIC MUTUAL MAY BE CLOSE TO BEING UNCONSTITUTIONAL BUT WASN'T IN FACT UNCONSTITUTIONAL BESIDES NOT RANKING THE ALABAMA FACTORS THE OPINION DIDN'T INDICATE WHICH IF ANY WERE NOW MANDATORY FOR OTHER STATES CHIEF JUDGE ALAN WILNER OF MARYLAND'S INTERMEDIATE APPEALS COURT RECALLS IN AN INTERVIEW HIS REACTION IF WE HAVE ONLY SOME ALABAMA FACTORS BUT NOT OTHERS IS IT GOOD OR NOT GOOD HIS COURT CONCLUDED THAT MARYLAND'S PROCEDURES WEREN'T CLOSE ENOUGH TO ALABAMA'S AND IN OCTOBER 1991 THREW OUT A 125 MILLION AWARD IN A CONTRACTFRAUD CASE IN FACT SAYS ALABAMA SUPREME COURT JUDGE GORMAN HOUSTON SINCE PACIFIC MUTUAL EVEN ALABAMA'S JUDICIARY HASN'T APPLIED ITS OWN RULES CONSISTENTLY THE PACIFIC MUTUAL RULING IS VERY VERY CONFUSING HE SAYS IT PUTS US IN THE POSITION WHERE WE DON'T KNOW WHETHER WE ARE DOING RIGHT OR WRONG FOUR DAYS AFTER THE SUPREME COURT'S DECISION WAS ANNOUNCED THE TIMING WAS A COINCIDENCE THE ALABAMA HIGH COURT STRUCK DOWN A CENTRAL PILLAR OF ITS PUNITIVE DAMAGES SYSTEM A STATE STATUTE GIVING APPELLATE JUDGES THE AUTHORITY TO INDEPENDENTLY REVIEW JURY AWARDS SINCE THEN THE ALABAMA SUPREME COURT HAS EMPLOYED A HIGHLY DEFERENTIAL PRESUMPTION OF CORRECTNESS THAT ALMOST ALWAYS RESULTS IN PUNITIVE AWARDS' BEING UPHELD IN OTHER WORDS THE ALABAMASTYLE APPELLATE REVIEW THAT JUSTICE BLACKMUN CALLED MEANINGFUL AND ADEQUATE NO LONGER TAKES PLACE IN ALABAMA JUSTICE ANTONIN SCALIA HAD PREDICTED THAT SUCH ANOMALIES WOULD OCCUR HE AND ANTHONY KENNEDY WROTE SEPARATE OPINIONS IN PACIFIC MUTUAL THAT CONCURRED IN THE RESULT BUT REJECTED THE MAJORITY'S REASONING JUSTICE SCALIA MOCKED THE MULTIFACTOR APPROACH SAYING THE BLACKMUN OPINION PERPETUATES THE UNCERTAINTY THAT THIS CASE WAS INTENDED TO RESOLVE YET JUSTICE SCALIA'S HABIT OF WRITING STINGING SEPARATE OPINIONS ALSO CAN HELP PERPETUATE UNCERTAINTY THOUGH A CONCURRING OPINION OF ONE JUSTICE GENERALLY ISN'T SUPPOSED TO BE CITED AS PRECEDENT JUDGE HUNT OF THE GEORGIA SUPREME COURT SCORNED THE PACIFIC MUTUAL MAJORITY AND ADOPTED JUSTICE SCALIA'S THEORY THAT PUNITIVE DAMAGES REGARDLESS OF THEIR MERIT CREATE NO CONSTITUTIONAL PROBLEMS COURTIMPOSED GUIDELINES ARE NOT THE REASON PUNITIVE DAMAGES SURVIVE CONSTITUTIONAL CHALLENGES JUDGE HUNT WROTE IN THE 1991 MEDICALMALPRACTICE DECISION THEY SURVIVE AS JUSTICE SCALIA NOTES BECAUSE OF THEIR HISTORICAL ACCEPTANCE OF ALL THE EFFORTS TO INTERPRET PACIFIC MUTUAL HOWEVER SURELY THE MOST BIZARRE WAS THAT OF WEST VIRGINIA'S SUPREME COURT THE CASE AROSE FROM A DISPUTE OVER RIGHTS TO EXPLORE FOR OIL BENEATH A TRACT OF LAND IN WEST VIRGINIA'S MCDOWELL COUNTY TXO PRODUCTION CORP A UNIT OF PITTSBURGHBASED USX CORP ACQUIRED THE MINERAL RIGHTS BUT PROVOKED A SQUABBLE WITH A WEST VIRGINIA COMPANY AND OTHER PARTIES OVER THE ACTUAL PAPER TITLE TO THOSE RIGHTS TXO FILED A SUIT IN 1987 WHICH IT LOST A COUNTERCLAIM WAS FILED AGAINST TXO AND IN 1990 A MCDOWELL COUNTY JURY AWARDED THE COMPANY'S OPPONENTS 19000 FOR THEIR LEGAL FEES ON TOP OF THAT THE JURY SAID TXO HAD MANUFACTURED THE TITLE DISPUTE TO BULLY ITS OPPONENTS AND IT HIT THE ENERGY CONCERN WITH 10 MILLION IN PUNITIVE DAMAGES TXO APPEALED AND BY THE TIME THE CASE REACHED THE STATE SUPREME COURT THE PACIFIC MUTUAL CASE HAD BEEN DECIDED JUDGE RICHARD NEELY OF WEST VIRGINIA'S TOP COURT WAS EAGER TO USE THE TXO CASE TO MAKE A STATEMENT IN THE WAKE OF PACIFIC MUTUAL HE WAS SO EAGER ACCORDING TO PEOPLE CLOSE TO THE STATE COURT THAT HE TRADED OPINIONWRITING ASSIGNMENTS WITH COLLEAGUES SO HE COULD HANDLE TXO JUDGE NEELY 51 YEARS OLD HAS EARNED A NATIONAL REPUTATION FOR HIS ARTICLES AND BOOKS ASSERTING THAT ELECTED STATE JUDGES INCLUDING HIMSELF ROUTINELY SAVAGE OUTOFSTATE COMPANIES TO BENEFIT LOCAL PLAINTIFFS WHO AFTER ALL ARE ALSO VOTERS MOST STATES ELECT SOME OR ALL OF THEIR JUDGES AS LONG AS I AM ALLOWED TO REDISTRIBUTE WEALTH FROM OUTOFSTATE COMPANIES TO INJURED INSTATE PLAINTIFFS I SHALL CONTINUE TO DO SO JUDGE NEELY WROTE IN A CYNICAL EXPLANATION OF THE PRACTICE IN A 1988 BOOK NOT ONLY IS MY SLEEP ENHANCED WHEN I GIVE SOMEONE ELSE'S MONEY AWAY BUT SO IS MY JOB SECURITY BECAUSE THE INSTATE PLAINTIFFS THEIR FAMILIES AND THEIR FRIENDS WILL REELECT ME JUDGE NEELY DECIDED TO EMPLOY THIS APPROACH WITH TXO AND THE MURKINESS OF PACIFIC MUTUAL GAVE HIM PLENTY OF ROOM TO MANEUVER IN PARTICULAR HE SOUGHT TO LAMPOON THE SUPREME COURT'S AMBIGUOUS COMMENT THAT A 4TO1 RATIO OF PUNITIVE TO COMPENSATORY DAMAGES WAS ALMOST BUT NOT QUITE UNCONSTITUTIONAL IN AN INTERVIEW JUDGE NEELY SAYS NO ONE ON THE SUPREME COURT HAS BEEN INTERESTED IN COMMERCIAL LAW HE DECLINES TO COMMENT FURTHER HIS TXO OPINION PAID LITTLE ATTENTION TO JUSTICE BLACKMUN'S ANALYSIS OF THE ALABAMA SYSTEM INSTEAD JUDGE NEELY CONDUCTED A SURVEY OF RATIOS EMPLOYED BY LOWER COURTS IN CASES DECIDED SINCE PACIFIC MUTUAL FROM THIS RESEARCH HE DERIVED THE REALLYSTUPID/REALLYMEAN PRINCIPLE AND PLACED TXO IN THE LATTER CATEGORY CITING INSURANCECLAIM DISPUTES HE EXPLAINED THAT REALLY STUPID DEFENDANTS ARE TYPICALLY COMPANIES WHOSE MIDDLEMANAGEMENT HAS PUSHED SOME VICTIM INTO A REDTAPE LIMBO QUINTUPLING THE VICTIM'S ACTUAL LOSS WILL FORCE SENIOR EXECUTIVES TO ENSURE BETTER SERVICE THE JUDGE ASSERTED BUT WHEN A DEFENDANT SUCH AS TXO IS NOT JUST STUPID BUT REALLY MEAN PUNITIVE DAMAGES LIMITS MUST BE GREATER IN ORDER TO DETER FUTURE EVIL ACTS JUDGE NEELY CONCLUDED THE 526TO1 RATIO SET BY THE MCDOWELL COUNTY JURY IS NECESSARY TO DISCOURAGE TXO FROM CONTINUING ITS PATTERN OF FRAUD TRICKERY AND DECEIT THE LAWYER FOR TXO CARTER PHILLIPS DENIES IT DID ANYTHING WRONG BUT SAYS THAT EVEN IF IT HAD THE 10 MILLION AWARD FAR EXCEEDS ALL OBJECTIVE STANDARDS OF FAIRNESS BY SHOWING THE EXTREME TO WHICH THE SUPREME COURT'S MUDDLED REASONING COULD BE TAKEN JUDGE NEELY CLEARLY AIMED TO PROD THE JUSTICES INTO AGAIN TAKING UP THE PUNITIVE DAMAGES ISSUE ALTHOUGH THE JUSTICES DON'T EXPLAIN WHY THEY AGREE TO REVIEW CASES JUDGE NEELY APPARENTLY SUCCEEDED IMPLICITLY ADMITTING THAT THEY BOTCHED THE PACIFIC MUTUAL DECISION THE JUSTICES HAVE AGREED TO USE THE WEST VIRGINIA TXO CASE TO TAKE ANOTHER CRACK AT PUNITIVE DAMAGES AFTER THE ORAL ARGUMENTS NEXT WEEK A RULING IS EXPECTED BY LATE JUNE DOW JONES & CO WHICH PUBLISHES THE WALL STREET JOURNAL AND OTHER MEDIA COMPANIES HAVE FILED A BRIEF SUPPORTING TXO THEY ARE CONCERNED ABOUT PUNITIVE DAMAGE AWARDS IN LIBEL CASES IT IS RELATIVELY UNUSUAL FOR THE JUSTICES TO RETURN TO THE SAME ISSUE ONLY TWO TERMS LATER OBSERVES GEOFFREY MILLER A LAW PROFESSOR AT THE UNIVERSITY OF CHICAGO THEY WOULD DO IT ONLY IN A SHOCK THE CONSCIENCE' CASE 9303240084 930324 LEISURE & ARTS HILL ARTISTS GO TO TOWN BY GAIL KING LOUISVILLE KY CORDIE MAE AND TADNEIZER CLODHOPPER LEFT HERE RECENTLY TO GO HOME TO ISLAND KY POPULATION 500 AND PACK UP FOR A TRIP TO NEW YORK THEY TOOK WITH THEM TO THE BIG APPLE DARVIS A CROSSEDLEGGED ROOSTER BEAUREGUARD A FORLORN BUT DIGNIFIED HOUND AND A SELECTION OF HANDMADE CLAY ELVES FOR THE RECENT INTERNATIONAL GIFT FAIR AT THE JAVITS CONVENTION CENTER GROSSES IS A FAIRLY NEW WORD IN MS BAILEY'S VOCABULARY WHEN I GOT STARTED I WAS MONKEYING AROUND WITH TEDDY BEARS VICTORIAN LACE AND MOIRE THEY WERE INTRICATE AND TOOK FOREVER TO MAKE I WAS TRYING TO SELL THEM AT FLEA MARKETS I DIDN'T KNOW THE DIFFERENCE BETWEEN WHOLESALE AND RETAIL I'D NEVER HEARD OF COMMISSIONS OR PATENTS THE FIRST TIME WE WENT TO NEW YORK BACK IN '86 WAS A REAL EYEOPENER IT WAS THE FIRST TIME I'D BEEN ANYWHERE THE ASTONISHING QUALITY OF WORKMANSHIP THE SOPHISTICATION OF THE BUYERS THE SIZE OF THE JAVITS WE SOLD 24000 THAT FIRST TRIP IT ABSOLUTELY BLEW OUR MINDS THAT SUCCESS PROMPTED MS BAILEY TO REORGANIZE HER BUSINESS FOR LARGERSCALE PRODUCTION TODAY SHE DESIGNS THE ANIMALS AND EMPLOYS FAMILY AND FRIENDS TO SEW AND PROCESS THEM EVEN THOUGH MS BAILEY'S HOME LIES ON THE OPPOSITE SIDE OF THE STATE FROM THE MOUNTAINS HER PATH TO NEW YORK STARTED BACK WHEN HIGHWAYS FIRST OPENED THOSE MOUNTAINS TO CASHCARRYING TOURISTS HANDCARVED TOYS AND HANDLOOMED CHENILLE BEDSPREADS HELPED PUT FOOD ON MANY A MOUNTAIN TABLE EFFORTS BY CHURCH GROUPS SOCIAL AGENCIES AND GOVERNMENT PROGRAMS PROVED A MIXED BLESSING THEY OFTEN ENCOURAGED GREED AND TRINKET PRODUCTION ALONG WITH SKILL AND ARTISTRY THE SUCCESSFUL CRAFT ORGANIZATIONS TOOK EXISTING QUALITY AND CREATED A MARKET GARRY G BARKER WRITES IN THE HANDICRAFT REVIVAL IN SOUTHERN APPALACHIA 19301990 WHILE THERE CONTINUED TO BE A MARKET FOR THE BAD STUFF THERE PROVED TO BE AN EXCEPTIONALLY GOOD MARKET FOR THE QUALITY GOODS BY 1958 CRAFT SALES IN THE APPALACHIAN STATES AMOUNTED TO A MILLIONDOLLAR INDUSTRY ANTIPOVERTY PROGRAMS BACKTOTHELAND PHILOSOPHIES AND HARDEARNED MARKETING EXPERIENCE EARNED CRAFTS A HIGHER PROFILE DURING THE '60S AND '70S BY 1987 THE ESTIMATED TAKE FOR CRAFTS IN THE SOUTHERN MOUNTAIN AREA WAS 150 MILLION KENTUCKY'S SHARE OF THAT WAS MORE THAN 20 MILLION THANKS TO LONGSTANDING MARKETS IN THE MOUNTAINS AND ALSO TO PHYLLIS GEORGE WHO AS THE WIFE OF GOV JOHN Y BROWN HAD THE SAVVY AND DETERMINATION TO GET A BROAD RANGE OF KENTUCKY CRAFTS INTO MAINSTREAM UPSCALE MARKETS THE KENTUCKY CRAFT MARKETING PROGRAM GOT UNDERWAY IN 1982 PROVIDING THE STATE'S CRAFTSPEOPLE WITH A NETWORK OF ARTISTIC AND BUSINESS KNOWHOW FROM THIS PROGRAM MS BAILEY LEARNED ABOUT PRICES AND GROSSES PROGRAM EXPERTS HELPED HER AND HER FATHER DEVELOP AND PATENT THE CHEMICAL MIXTURE THAT LEATHERIZES CORDIE MAE AND COMPANY A DISPLAY WORKSHOP INSPIRED HER TO DESIGN A SHIPPING CRATE THAT DOUBLES AS A RUSTIC DISPLAY CASE FOR SHOW BOOTHS BUT MOST IMPORTANT SHE CREDITS THE ANNUAL JURIED LOUISVILLE WHOLESALE MARKET WITH GIVING HER THE EXPERTISE TO TACKLE NEW YORK BY THE TIME MS BAILEY CRATED HER CHARACTERS AND PAID FOR PLANE TICKETS DISPLAY SPACE FOOD AND HOTEL ROOMS FOR HERSELF AND TWO FAMILY MEMBERS HER NEW YORK TAB WAS 8000 SUCH TRIPS ARE IMPOSSIBLY EXPENSIVE FOR NEWCOMERS LIKE JIM CHAMBERS A CARPENTER TURNED BIRDHOUSE MAKER EVEN THOUGH HIS HOUSES ARE PRICEY ONE MODELED AFTER THE CUSTOMER'S OWN HOUSE COSTS 150 IT WILL BE A WHILE BEFORE HE CAN INVEST THOUSANDS IN A MARKETING TRIP HIS WARES WENT TO NEW YORK UNDER THE UMBRELLA OF KENTUCKY CRAFTS BUT CHANCES ARE HIS TIME WILL COME THIS YEAR THE YEAR OF AMERICAN CRAFT THERE WERE 500 CRAFT BOOTHS AT NEW YORK FIVE YEARS AGO THERE WERE LESS THAN 100 THE JANUARY CRAFTS REPORT THE INDUSTRY'S BUSINESS JOURNAL LISTED 39 WHOLESALE SHOWS AND 150 PUBLIC SHOWS FOR 1993 THIS DOES NOT INCLUDE THOUSANDS OF GATHERINGS IN MALLS AND SMALL TOWNS CRAFTSPEOPLE ARE THINKING OF THEMSELVES AS BOTH ARTISANS AND BUSINESSPEOPLE SAYS MARILYN STEVENS EDITOR OF THE REPORT THEY ARE LEARNING TO TARGET THEIR SALES TO TOURISTS OR COLLECTORS OR BRIDAL REGISTERS THERE'S A BIG SURGE THIS YEAR WE'RE SEEING INCREASES IN CATALOG AND TELEVISION SALES AND THERE'S DRAMATIC GROWTH IN CRAFTS AS CORPORATE GIFTS TO PURCHASE THE YEAR OF AMERICAN CRAFT CALENDAR A LISTING OF MORE THAN 1000 CRAFT EVENTS IN THE US AND CANADA SEND 6 TO AMERICAN CRAFT COUNCIL 72 SPRING ST NEW YORK NY 10012 FOR INFORMATION ABOUT KENTUCKY CRAFTSPEOPLE CONTACT FRAN REDMON THE KENTUCKY CRAFT MARKETING PROGRAM 39 FOUNTAIN PLACE FRANKFORT KY 406011942 502 5648076 MARSHA BURTON KENTUCKY ART AND CRAFT FOUNDATION 609 WEST MAIN ST LOUISVILLE KY 40202 502 5890102 MELISSA GROSS BEREA TOURIST COMMISSION PO BOX 556 BEREA KY 40403 800 5985263 MS KING IS A FREELANCE WRITER IN HENDERSON KY 9303240083 930324 TECHNOLOGY NEW YORK UTILITIES TO STUDY POWER LINES NEAR SCHOOLS NEW YORK THE STATE'S ATTORNEY GENERAL SAID THE EIGHT ELECTRIC UTILITIES IN THE STATE HAVE AGREED TO SURVEY THE LOCATION OF POWER LINES NEAR SCHOOLS AND THE ELECTROMAGNETIC FIELDS THEY CREATE IN RECENT MONTHS ELECTROMAGNETIC FIELDS HAVE COME UNDER CLOSER SCRUTINY AS RESEARCHERS HAVE UNCOVERED POSSIBLE LINKS BETWEEN ELECTROMAGNETIC FIELDS THAT EMANATE FROM POWER LINES AND INCIDENCES OF CHILDHOOD LEUKEMIA NIAGARA MOHAWK POWER CORP SYRACUSE NY INITIATED ITS OWN SURVEY OF ELECTROMAGNETIC FIELDS THAT EMIT FROM ITS POWER LINES AS PART OF A RATE FILING IN 1991 SINCE THEN IT HAS AGREED TO REDUCE ELECTROMAGNETIC FIELDS EMANATING FROM TWO POWER LINES THAT RUN WITHIN 70 FEET OF THE VOORHEESVILLE SCHOOL IN ALBANY COUNTY BY REMOVING ONE OF THE LINES CLOSEST TO THE SCHOOL AND RECONFIGURING ANOTHER LINE THE UTILITY ALSO AGREED TO INSTITUTE A MONITORING PROGRAM FOR THE POWER LINES THE AGREEMENT OF THE STATE'S SEVEN OTHER UTILITIES COMES THREE WEEKS AFTER STATE ATTORNEY GENERAL ROBERT ABRAMS MADE A FORMAL REQUEST OF THE UTILITIES TO FOLLOW NIAGARA MOHAWK'S LEAD IN SURVEYING POWER LINES THAT RUN NEAR SCHOOLS 9303240081 930324 GEPHARDT AFFIRMS SUPPORT FOR FREE TRADE AGREEMENT MEXICO CITY HOUSE MAJORITY LEADER RICHARD A GEPHARDT REAFFIRMED HIS SUPPORT FOR COMPLETING A PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT FOLLOWING A MEETING YESTERDAY WITH PRESIDENT CARLOS SALINAS DE GORTARI MR GEPHARDT AND THE MEXICAN LEADER MET TO DISCUSS SUPPLEMENTARY AGREEMENTS ON LABOR AND THE ENVIRONMENT THAT ARE NOW BEING NEGOTIATED BY TRADE REPRESENTATIVES OF THE US MEXICO AND CANADA PRESIDENT CLINTON HAS SAID THESE ANCILLARY AGREEMENTS MUST BE CONCLUDED BEFORE HE WILL SEND THE TRADE AGREEMENT TO A VOTE IN THE US CONGRESS IN AN INTERVIEW AFTER THE MEETING MR GEPHARDT SAID HE WANTED TO MAKE SURE MR SALINAS UNDERSTOOD THE DEPTH OF CONCERN IN CONGRESS OVER ENVIRONMENTAL ISSUES INVOLVING NAFTA WE HAVE TO KNOW AT THE END OF THE DAY THERE WILL BE REAL ENFORCEMENT OF ENVIRONMENTAL LAWS IN MEXICO THE MISSOURI DEMOCRAT SAID BUT I'M NOT HUNG UP ON HOW THIS IS DONE HE SAID THAT RULINGS IF ANY BY A PROPOSED NORTH AMERICAN ENVIRONMENTAL COMMISSION LEADING TO SANCTIONS WOULD GET YOU INTO TOUGH LEGAL QUESTIONS BUT MR GEPHARDT WHO HAS REGULARLY CALLED FOR TOUGH ENFORCEMENT PROVISIONS DIDN'T PROVIDE AN ALTERNATIVE PLAN 9303240080 930324 MANUFACTURERS IN SURVEY SEE CLINTON PLAN FAILING WASHINGTON PRESIDENT CLINTON'S ECONOMIC PLAN IS LIKELY TO BE A FLOP ACCORDING TO A SURVEY OF THE NATION'S MANUFACTURING EXECUTIVES NINETY PERCENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS BOARD MEMBERS WHO RESPONDED TO THE SURVEY SAID THEY DON'T BELIEVE THE CLINTON ADMINISTRATION'S SHORTTERM STIMULUS PACKAGE IS AN EFFECTIVE WAY TO ENCOURAGE ECONOMIC GROWTH AND JOB CREATION NINETYTWO PERCENT OF THE 90 MANUFACTURERS SAID THE PROPOSED TEMPORARY AND INCREMENTAL INVESTMENT TAX CREDITS WOULDN'T ENCOURAGE THEM TO MAKE SIGNIFICANT ADDITIONAL INVESTMENTS IN NEW PLANT AND EQUIPMENT IN ADDITION 93 OF THESE EXECUTIVES FROM A VARIETY OF MANUFACTURING COMPANIES SAID THE BENEFITS OF LOWER INTEREST COSTS FROM DEBT REDUCTION WOULD BE OUTWEIGHED BY THE PLAN'S TAX INCREASES AT THEIR COMPANIES THE SAME PERCENTAGE SAID THEY WOULD FAVOR DROPPING THE 31 BILLION STIMULUS PLAN ALTOGETHER IN EXCHANGE FOR A 31 BILLION TAX CUT SUCH AN ADJUSTMENT TO THE PLAN WOULD BE AN EXCELLENT DOWN PAYMENT TO REMEDYING ITS SHORTCOMINGS SAID ASSOCIATION PRESIDENT JERRY JASINOWSKI DROPPING THE STIMULUS PACKAGE WOULD ALLOW A REDUCTION IN THE EXCESSIVE BUSINESS TAX INCREASES INCREASES THAT WOULD PREVENT JOBS FROM BEING CREATED 9303240079 930324 WHO'S NEWS ACCUHEALTH NAMES JOHNSON TO ASSUME POSTS HELD BY SHERRY NEW YORK ACCUHEALTH INC NAMED ALLAN E JOHNSON AS ITS NEW CHIEF FINANCIAL OFFICER AFTER ANOTHER EXECUTIVE RESIGNED IN THE MIDST OF AN INVESTIGATION INTO POSSIBLE FINANCIAL IMPROPRIETIES MR JOHNSON ALSO WAS NAMED VICE PRESIDENT FOR FINANCE CONTROLLER SECRETARY AND TREASURER HE SUCCEEDS RONALD G SHERRY WHO RESIGNED AS CHIEF FINANCIAL OFFICER AND CONTROLLER MR JOHNSON HAD PREVIOUSLY BEEN A VICE PRESIDENT AT NEW YORK LIFE INSURANCE CO ACCUHEALTH SAID LAST WEEK EDWIN T VEITH 61 YEARS OLD WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER TO SUCCEED STANLEY LEPELSTAT 61 WHO RESIGNED MR LEPELSTAT'S WIFE SHEILA LEPELSTAT 57 ALSO RESIGNED AS SECRETARY AND TREASURER ACCUHEALTH ANNOUNCED IN LATE FEBRUARY THAT IT WAS UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION FOR POSSIBLE FINANCIAL IMPROPRIETI THE PHARMACY AND HOME HEALTH CARE SERVICES COMPANY SAID AT THE TIME THAT IT LIKELY FACES A MATERIAL LIABILITY FOR FAILING TO PAY TAXES ON CERTAIN REVENUE AND EMPLOYEE COMPENSATION IT SAID IT BELIEVED THAT SOME TOP OFFICERS WERE AWARE OF AND MAY HAVE PARTICIPATED IN SCHEMES TO PAY OFFTHEBOOKS COMPENSATION TO THEMSELVES AND OTHERS A COMPANY SPOKESMAN DIDN'T RETURN PHONE CALLS YESTERDAY ACCUHEALTH ALSO SAID YESTERDAY THAT IT HAS REQUESTED A HEARING WITH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS REGARDING THE POSSIBLE RESUMPTION OF TRADING OF ITS COMMON STOCK BUT IT SAID THERE IS NO ASSURANCE THAT THE TRADING WILL BE PERMITTED SHARES LAST TRADED FEB26 WHEN THEY CLOSED AT 475 UP 125 CENTS 9303240078 930324 MEDIA PREMIUM CABLE CHANNELS GAIN VIEWERS WITH ORIGINAL PROGRAMS PACKAGE DEALS BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL PAYCABLE NETWORKS ARE WINNING VIEWERS WITH NEW MARKETING PROGRAMMING AND PRICING STRATEGIES YEAREND SUBSCRIBER FIGURES INDICATE A GENERAL REBOUND IN THE PAYTV MARKET THE DISNEY CHANNEL IS STAMPEDING AHEAD OF ITS COMPETITION BUT INDUSTRY LEADERS HOME BOX OFFICE AND SHOWTIME ARE ALSO SHOWING GAINS AFTER SEVERAL YEARS OF MODEST DECLINES AND LOSSES UNTIL LAST YEAR HUNDREDS OF THOUSANDS OF CONSUMERS HAD BEEN TUNING OUT OF HIGHPRICED PAYTV SERVICES EACH YEAR SWITCHING TO MYRIAD OTHER CHOICES SUCH AS VIDEOCASSETTES AND PAYPERVIEW MOVIES TO INCREASE BUSINESS THE NETWORKS ALSO KNOWN AS PREMIUM CHANNELS HAVE VASTLY INCREASED THEIR SPENDING ON ORIGINAL PROGRAMMING SCALING BACK ON THEIR PAST PRACTICE OF RELYING ON HOLLYWOOD MOVIES HBO WHICH SPENDS ABOUT 4 MILLION TO ACQUIRE MOVIES THAT HAVE ALREADY PLAYED IN THEATERS AND ON VIDEO HAS POURED MORE OF ITS BUDGET INTO ITS OWN ORIGINAL MOVIES ABOUT HALF OF ALL ITS MOVIE TITLES LAST YEAR WERE ORIGINAL PRODUCTIONS IT SPENT 7 MILLION FOR EXAMPLE TO PRODUCE THIS MONTH'S BARBARIANS AT THE GATE CABLE OPERATORS ARE HELPING TO BOOST SUBSCRIPTIONS TOO BY PACKAGING SEVERAL PAY NETWORKS TOGETHER AT A DISCOUNT OR RUNNING FREE TRIALS OF THE NETWORKS ON A REGULAR BASIS DISNEY'S GROWTH IS THE MOST DRAMATIC CONSIDERING THAT IT GREW EVEN DURING THE INDUSTRY'S WORST YEARS THE COMPANY WHICH STARTED WITH FAMILY PROGRAMMING PRIMARILY AIMED AT CHILDREN HAS GRADUALLY SHIFTED ITS FOCUS TO INCLUDE ADULTS IT SAYS THAT MORE THAN 30 OF ITS CURRENT SUBSCRIBERS DON'T EVEN HAVE KIDS WHILE CONTINUING SUCH POPULAR CHILDREN'S FARE AS THE NEW MICKEY MOUSE CLUB THE NETWORK TODAY AIRS SUCH ORIGINAL MOVIES AS THE ERNEST GREEN STORY AND FRIENDSHIP IN VIENNA MOVIES WITH MORE ADVERSITY AND RICHER CONFLICTS THAN BEFORE SAYS JOHN COOKE THE DISNEY CHANNEL'S PRESIDENT THE NETWORK ALSO SHOWS MUSIC CONCERTS FEATURING ENTERTAINERS LIKE HARRY CONNICK JR AND TINA TURNER FREE PREVIEW WEEKENDS HAVE ALSO GIVEN THE CHANNEL A BOOST DISNEY DOES FIVE A YEAR MORE THAN ANY OTHER PAY SERVICE LARGELY TO INCREASE AWARENESS OF ITS PROGRAMMING AMONG ADULTS THE PAY NETWORK HAS ALSO DESIGNED A CONSUMER AD CAMPAIGN MAKING THE POINT INCLUDING ONE AD THAT SHOWS THREE PICTURES TWO OF DONALD DUCK'S NEPHEWS AND ONE OF COMEDIAN JERRY LEWIS THE CAPTION READS HUEY DEWEY AND LEWIS AND THE AD PLUGS MARTIN AND LEWIS THE GOLDEN AGE OF COMEDY OVER THE PAST FIVE YEARS THE WALT DISNEY CO UNIT HAS GROWN AT AN AVERAGE RATE OF 13 ANNUALLY ADDING MORE THAN 800000 SUBSCRIBERS LAST YEAR FOR A TOTAL OF 71 MILLION SUBSCRIBERS THERE IS STILL A LOT OF ROOM FOR GROWTH SAYS MR COOKE THE REAL SALVATION OF PAY TV IS PRICING SO THE CONSUMER CAN SEE VALUE IF ITS CURRENT GROWTH PATTERN CONTINUES DISNEY IS SURE TO SURPASS VIACOM INC'S SHOWTIME WITH 76 MILLION SUBSCRIBERS AS THE NO 2 NETWORK SERVICE BEHIND GIANT HBO A TIME WARNER INC UNIT NONETHELESS SHOWTIME WHICH LOST 100000 SUBSCRIBERS IN 1991 ADDED NEARLY 300000 SUBSCRIPTIONS IN 1992 A VIACOMOWNED SISTER SERVICE THE MOVIE CHANNEL TICKED UP BY 100000 TO 27 MILLION SUBSCRIBERS FOR 1992 AFTER LOSING ABOUT 200000 IN 1991 HBO WHICH LOST ABOUT 300000 SUBSCRIBERS IN 1991 SAYS IT ADDED 100000 LAST YEAR FOR A TOTAL OF 174 MILLION AND DOUBLED ITS DIRECT SATELLITE MARKET TO A MILLION SUBSCRIBERS HBO'S SISTER SERVICE CINEMAX SAYS IT REMAINED FLAT AT ABOUT 62 MILLION SUBSCRIBERS NEARLY A THIRD OF DISNEY SUBSCRIBERS BUY THAT NETWORK AS PART OF A PACKAGE WITH OTHER CHANNELS IN SOME CASES DISNEY IS SOLD AS THE ONLY PREMIUM SERVICE IN A PACKAGE OF ADVERTISERSUPPORTED BASIC CHANNELS IN OTHER CASES IT IS SOLD AS PART OF A PREMIUM PACKAGE PRIOR TO OCTOBER LAST YEAR FOR EXAMPLE A SUBSCRIBER OF BEND CABLE COMMUNICATIONS INC IN BEND OREGON WOULD HAVE PAID 1295 FOR THE DISNEY CHANNEL 995 FOR SHOWTIME AND 1495 FOR ITS SISTER SERVICE THE MOVIE CHANNEL FOR A TOTAL OF 3785 BUT THE OPERATOR STARTED SELLING THE CHANNELS AS A PACKAGE AND CUT THE PRICE TO 1595 DISNEY'S PENETRATION IN THAT SYSTEM TRIPLED TO NEARLY 14 AND THE OTHER NETWORKS SAW SIMILAR GAINS WE'VE GOTTEN CREATIVE OUT OF NECESSITY SAYS MICHAEL O' HERRON VICE PRESIDENT OF BEND CABLE WHEN THEY AREN'T GIVING AWAY THE CHANNEL MANY NETWORKS ARE CUTTING THE WHOLESALE PRICE TO CABLE OPERATORS HOPING TO MAKE UP THE DIFFERENCE BY INCREASING THE NUMBER OF SUBSCRIBERS INCREASINGLY SHOWTIME HAS DISCOUNTED ITS WHOLESALE PRICE BUT THE NETWORK SAYS IT HAS A HARD TIME PERSUADING CABLE OPERATORS TO DO THE SAME WE TRY TO TELL THEM YOU SELL US FOR A FRACTION OF THE REGULAR PRICE AND YOU'LL GET MORE MONEY' SAYS SHOWTIME'S CHAIRMAN WINSTON H TONY COX IT'S NOT EASY RIVALS SAY SUCH DISCOUNTING MAY SACRIFICE PROFITS FOR VOLUME INDEED THE ENTIRE PAY CATEGORY'S REVENUE HASN'T MOVED BEYOND 51 BILLION IN THE PAST THREE YEARS BUT SHOWTIME SAYS THE NEW PRICING STRATEGYWHICH IT HOPES TO OFFER TO HALF ITS SUBSCRIBERS NEXT YEAR UP FROM A THIRD TODAYFUELED PRACTICALLY ALL OF ITS GROWTH LAST YEAR SHOWTIME IS HOPING TO GET A BOOST TOO FROM A JOINT MARKETING EFFORT BETWEEN IT AND HBO THAT BEGAN TWO MONTHS AGO THE RESULT OF THE SETTLEMENT OF A FEDERAL LAWSUIT BY THE TWO PAY SERVICES SHOWTIME HAS YET TO OBTAIN RESULTS FROM ITS LATEST ENDEAVOR A MINIPAY CHANNEL CALLED FLIX PRICED AT AROUND 2 OR FREE IF CABLE VIEWERS BUY MORE THAN ONE PAY SERVICE A SIMILAR MOVIE SERVICE ENCORE WHICH GREW BY NEARLY 600000 SUBSCRIBERS TO 38 MILLION LAST YEAR NOW SELLS ITSELF WITH OTHER CABLE NETWORKS OFFERED BEYOND THE BASIC PACKAGE OF CHANNELS ENCORE IS OWNED IN PART BY LIBERTY MEDIA CORP FUTURE GROWTH MAY BE HARDER TO COME BY FOR THE PREMIUM CHANNELS IN THEORY THERE IS ROOM FOR EXPANSION 57 MILLION HOUSEHOLDS HAVE CABLE AND MORE THAN 15 MILLION STILL DON'T SUBSCRIBE TO ANY OF THE PREMIUM CHANNELS BUT AS CABLE SYSTEMS UPGRADE TO OFFER HUNDREDS OF ADDITIONAL CHANNELS THE PAY NETWORKS WILL BE COMPETING FOR SUBSCRIBER DOLLARS WITH MORE PAYPERVIEW MOVIES AND A VARIETY OF OTHER NEW PROGRAMMING STILL THE TORPID PREMIUMCATEGORY ENVIRONMENT HASN'T DETERRED NEWCOMERS THE WORLD AFRICAN NETWORK THE FIRST PAY NETWORK TARGETED AT AFRICAN AMERICANS PLANS TO START UP IN JUNE 1994 ONE STRATEGY FOR EXISTING PAY NETWORKS IS SOCALLED MULTIPLEXING WHICH CALLS FOR OFFERING THE SAME PROGRAMS AT STAGGERED TIMES ON DIFFERENT CHANNELS HBO THE GOLIATH OF THE PAY CATEGORY PUSHED SUBSCRIBER GROWTH 7 IN THE 121 CABLE SYSTEMS THAT OFFERED MULTIPLEXING COMPARED WITH FLAT PERFORMANCE IN OTHER SYSTEMS IN ADDITION VIEWING TIME WAS UP 40 SAYS HBO WHICH PLANS TO MULTIPLEX HBO TO 20 OF SUBSCRIBERS BY NEXT YEAR UP FROM 10 TODAY THE DISNEY CHANNEL AND SHOWTIME REPORT SIMILAR PROGRESS WITH THEIR MULTIPLEX TRIALS HBO CHAIRMAN MICHAEL FUCHS POINTS OUT THAT HBO HAS INCREASED ITS BOTTOM LINE 10 EVERY YEAR FOR THE PAST EIGHT YEARS WHILE THE COMPANY HAS DIVERSIFIED INTO SOME OTHER BUSINESSES SUCH AS PRODUCTION OF TV PROGRAMS FOR OTHERS INCLUDING TV NETWORKS MR FUCHS MAINTAINS THAT HE BASIC PAYNETWORK BUSINESS IS ON A VERY POSITIVE UP CURVE HE ADDED I'M MORE OPTIMISTIC NOW ABOUT THE BUSINESS THAN EVER SOURCES COMPANY FIGURES PAUL KAGAN ASSOCIATES INC 9303240077 930324 ROYAL TRUSTCO SHARES FALL ON PURCHASE NEWS FROM CANADA BANK TORONTO SHARES OF ROYAL TRUSTCO LTD FELL TO AN ALLTIME LOW OF 64 CANADIAN CENTS 51 US CENTS ON THE TORONTO STOCK EXCHANGE YESTERDAY ON NEWS THAT THE ROYAL BANK OF CANADA HAS AGREED TO HELP FINANCE ITS OWN PROPOSED ACQUISITION OF VIRTUALLY ALL OF TRUSTCO'S OPERATIONS UNDER TERMS OF THE COMPLEX TRANSACTION ROYAL TRUSTCO WILL PAY BACK TO THE BANK NOT ONLY THE 165 BILLION CANADIAN DOLLAR US132 BILLION PURCHASE PRICE IT RECEIVES FOR ITS CANADIAN AND INTERNATIONAL PERSONAL TRUST BUSINESSES BUT WILL ALSO HAVE TO COME UP WITH AN ADDITIONAL C155 BILLION IN CASH TO BUY BACK A PORTFOLIO OF LOANS FROM THE BANK ROYAL BANK BASED IN MONTREAL WILL PROVIDE ABOUT C200 MILLION IN THE FORM OF FINANCING SECURED BY A PURCHASE MONEY MORTGAGE ROYAL TRUSTCO SAID AT SEPT 30 THE COMPANY HAD C13 BILLION IN CASH AND SHORTTERM INVESTMENTS BUT ANALYSTS BELIEVE THESE HAVE BEEN DEPLETED TRILON FINANCIAL CORP WHICH HOLDS 48 OF ROYAL TRUSTCO PLANS TO PROVIDE ANOTHER C100 MILLION IN SECURED FINANCING ROYAL TRUSTCO WILL BE LEFT WITH LOTS OF DEBT AND VERY LITTLE COMMON EQUITY AND LOANS WHICH WILL BE DIFFICULT TO COLLECT SAID ALAIN TUCHMAIER AN ANALYST WITH MCLEAN MCCARTHY LTD IN TORONTO ROYAL TRUSTCO SAID THAT FOLLOWING THE TRANSACTION IT WILL SEEK TO RECOVER AS MUCH AS POSSIBLE OF THE C43 BILLION IN LOANS LEFT ON ITS BOOKS THE COMPANY WILL HAVE NO OTHER OPERATIONS THAT C43 BILLION PORTFOLIO ORIGINALLY CARRIED A VALUE OF C5 BILLION OFFICIALS OF TRILON SAID MR TUCHMAIER SAID HE DOESN'T EXPECT THAT THERE WILL BE ANY VALUE IN THE COMPANY ATTRIBUTABLE TO COMMON OR PREFERRED SHAREHOLDERS ONCE THE DUST SETTLES ROYAL TRUSTCO SAID IT IS CONSIDERING SELLING SOME OF THE LOAN PORTFOLIO AND WILL CONTINUE TO COLLECT ON SOME OTHER PERFORMING LOANS BEFORE THE TRANSACTION CLOSES THE TRUST COMPANY IS PART OF THE CORPORATE EMPIRE CONTROLLED BY FINANCIERS PETER AND EDWARD BRONFMAN 9303240076 930324 WHO'S NEWS SOTHEBY'S PICKS BROOKS TO HEAD AUCTION UNIT BY AMAL KUMAR NAJ AND ALEXANDRA PEERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SOTHEBY'S HOLDINGS INC WHICH RECENTLY POSTED BLEAK 1992 RESULTS GAVE A TOPLEVEL EXECUTIVE THE JOB OF INTEGRATING ITS WORLDWIDE ARTAUCTION ACTIVITIES AND SEPARATELY PRESENTED AN UPBEAT BUSINESS OUTLOOK TO A MEETING OF THE LAZARD FRERES & CO SALES FORCE THE COMPANY NAMED DIANA D BROOKS 42 YEARS OLD TO THE NEW POSITION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SOTHEBY'S ITS AUCTION UNIT THIS IS AN EXPANSION OF HER CURRENT DUTIES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SOTHEBY'S NORTH AND SOUTH AMERICAN AUCTION OPERATIONS MRS BROOKS IN HER NEW CAPACITY WILL HAVE THE JOB OF STRATEGICALLY INTEGRATING THE COMPANY'S WORLDWIDE BUSINESSES HER PROMOTION COULD MEAN LESS AUTONOMY FOR THE FIRM'S HUGE EUROPEAN OPERATIONS AND PRESAGES FURTHER LAYOFFS AND CUTBACKS MICHAEL AINSLIE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PARENT COMPANY SOTHEBY'S HOLDINGS NOTED THAT AT THE FIRM'S 140 INTERNATIONAL OFFICES WE MAY HAVE REDUNDANCIES IN CAPACITY FACILITIES AND PERSONNEL NOTHING IS OFF LIMITS SOTHEBY'S HOLDINGS WHICH ALSO HAS FINANCE AND REALESTATE OPERATIONS ALSO NAMED KEVIN BOUSQUETTE 35 SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER PREVIOUSLY HE WAS AN EXECUTIVE AT THE INVESTMENT FIRM OF KOHLBERG KRAVIS ROBERTS & CO HE SUCCEEDS RUSSELL ROTH 46 WHO IS LEAVING AFTER SEVEN YEARS LAST WEEK SOTHEBY'S POSTED A 37 DECLINE IN 1992 FOURTHQUARTER PROFIT AND A 69 DROP FOR THE YEAR MR AINSLIE SAID HE WASN'T HAPPY WITH THE 1992 RESULTS BUT WE ARE SEEING A PICKUP THIS YEAR THE COMPANY DIDN'T MAKE ANY EARNINGS PROJECTION AT THE LAZARD MEETING BUT MR AINSLIE NOTED THAT IN THE YEARTODATE THE COMPANY HAD SOLD 84 OF THE ITEMS PUT ON THE AUCTION BLOCK THAT'S UP FROM 82 IN 1992 HE ADDED THAT HE WAS HOPEFUL OF A MODESTLY IMPROVING MARKET IN SPRING MOST NOTABLY THE COMPANY WILL AUCTION AN 1890 PAINTING BY PAUL CEZANNE STILL LIFE WITH APPLES ON MAY 11 THAT IS EXPECTED TO SELL FOR SEVERAL MILLION DOLLARS MR AINSLIE PREDICTED THAT THE FIRM'S HUGE SPRING AUCTION SALES HELD IN EARLY MAY WOULD BE MORE SUCCESSFUL THAN THOSE OF THEIR CHIEF RIVAL CHRISTIE'S INTERNATIONAL PLC I'LL BE QUITE SURPRISED IF THEY OUTDO US IN EITHER NEW YORK OR LONDON HE SAID DESPITE MR BOUSQUETTE'S EXPERTISE IN LEVERAGED BUYOUT AND REVERSE LEVERAGED BUYOUT SITUATIONS MR AINSLIE EMPHASIZED THAT THERE WEREN'T ANY PLANS WHATSOEVER TO RESTRUCTURE SOTHEBY'S THE PERSONNEL ANNOUNCEMENTS HAD BEEN PLANNED FOR LATER THIS WEEK BUT CONCERN THAT NEWS WAS LEAKING OUT ON WALL STREET DUE TO A 6 RISE IN SOTHEBY'S SHARES ON MONDAY PROMPTED THE COMPANY TO ACCELERATE ITS NEWS RELEASE YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SOTHEBY'S SHARES ENDED UNCHANGED AT 13875 EACH 9303240075 930324 BUSINESS BRIEF HEALTH MANAGEMENT ASSOCIATES INC FIRM TO BUY FOUR HOSPITALS FROM GALEN HEALTH CARE INC HEALTH MANAGEMENT ASSOCIATES INC SIGNED A LETTER OF INTENT TO BUY FOUR ACUTECARE HOSPITALS FROM GALEN HEALTH CARE INC A HOSPITAL OPERATOR BASED IN LOUISVILLE KY TERMS WEREN'T DISCLOSED THE ACQUISITIONS WOULD EXPAND THE NAPLES FLA COMPANY'S OPERATIONS ABOUT 30 ADDING 509 HOSPITAL BEDS TO THE 1658 BEDS AT THE 16 HOSPITALS THE COMPANY CURRENTLY OPERATES THE HOSPITALS TO BE ACQUIRED IN FLORENCE ALA SEBASTIAN FLA DADE CITY FLA AND NATCHEZ MISS WOULD GIVE THE COMPANY A COMPETITIVE ADVANTAGE SAID WILLIAM J SCHOEN CHIEF EXECUTIVE OFFICER PRESIDENT AND CHAIRMAN THE ACQUISITIONS ARE IN STATES THAT REQUIRE NEW HOSPITALS TO OBTAIN A CERTIFICATE SHOWING COMMUNITY NEED SO IT IS A BARRIER FOR ENTRY BY COMPETITORS MR SCHOEN SAID THE COMPANY IS LOOKING FOR ADDITIONAL ACQUISITION OPPORTUNITIES HE SAID 9303240074 930324 FUNNIES' SPARK LIGHTHEARTED REVIVAL IN ONCESEDATE MARKET FOR EUROBONDS BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL A REVIVAL IS UNDERWAY IN THE ONCESLEEPY EUROBOND MARKET AIDED BY A NEW GENERATION OF BONDS THAT LETS INVESTORS SPECULATE ON GLOBAL INTEREST RATES AND CURRENCIES DESIGNED BY FINANCIAL ENGINEERS AT MAJOR INVESTMENT BANKS THE NEW SECURITIES INCLUDE ESOTERICSOUNDING COLLARED FLOATERS PARTLY PAID BONDS AND SURFS WHICH ALLOW INVESTORS TO RIDE OUT THE WAVES IN THE YIELD CURVE ACCORDING TO ONE INVESTMENT BANKER WITH ONE WEEK STILL LEFT IN THE FIRST QUARTER SALES OF NEW EUROBONDS ALREADY HAVE HIT A QUARTERLY RECORD OF 102 BILLION THE GROWTH IN THE MARKET HAS ASTONISHED EVERYBODY SAYS TIMOTHY J SKEET A SYNDICATE MANAGER AND SENIOR VICE PRESIDENT AT KIDDER PEABODY INTERNATIONAL IN LONDON A UNIT OF NEW YORKBASED KIDDER PEABODY & CO BELLS AND WHISTLES EUROBONDS ARE BONDS THAT ARE ISSUED BY A CORPORATION GOVERNMENT OR OTHER BORROWER OUTSIDE ITS OWN COUNTRY THE ISSUES USUALLY ARE DENOMINATED IN ANOTHER COUNTRY'S CURRENCY FOR EXAMPLE GENERAL ELECTRIC CO OF THE US RECENTLY SOLD ABOUT 15 BILLION FRANCS 2693 MILLION OF EUROBONDS ON MONDAY SWISS DRUG MAKER ROCHE HOLDING LTD SOLD 1 BILLION OF DOLLARDENOMINATED EUROBONDS THAT INCLUDE WARRANTS THAT EVENTUALLY ALLOW HOLDERS TO BUY ROCHE STOCK BUT TO ATTRACT INVESTORS AT A TIME WHEN WORLD FINANCIAL MARKETS ARE VOLATILE EUROPEAN INVESTMENT BANKERS HAVE PUT A LOT OF BELLS AND WHISTLES ON NEW EUROBONDS THAT GIVE INSTITUTIONAL INVESTORS SIMPLE WAYS TO INCORPORATE VARIOUS INTERESTRATE AND CURRENCY FORECASTS INTO THEIR PORTFOLIOS IF YOU BELIEVE THAT THE VALUE OF THE FRENCH FRANC WILL DECLINE RELATIVE TO THE VALUE OF THE US DOLLAR YOU CAN BUY A EUROBOND THAT REFLECTS THAT VIEW SAYS JOHN HAGUE A PORTFOLIO MANAGER AT PACIFIC INVESTMENT MANAGEMENT CO THIS IS THE LEADING EDGE OF FINANCIAL ENGINEERING IN THE BOND MARKET MEANWHILE POLITICS AND ECONOMICS ARE BOOSTING BOTH THE SUPPLY OF AND DEMAND FOR EUROBONDS FACED WITH GROWING BUDGET DEFICITS MANY EUROPEAN COUNTRIES ARE BORROWING HEAVILY TO FINANCE GOVERNMENT SPENDING EUROPEAN CENTRAL BANKS ARE ALLOWING INTEREST RATES TO DECLINE IN AN EFFORT TO STIMULATE ECONOMIC GROWTH A SITUATION THAT HAS CAUSED BOND PRICES TO RISE AND MANY CORPORATIONS EAGER TO LOCK IN LOWER BORROWING COSTS ARE RAPIDLY REFINANCING THEIR DEBT BY SELLING BONDS AT LOWER YIELDS BUT UNLIKE IN THE US WHERE THERE ARE PLENTY OF DOMESTIC BUYERS THE BOND MARKETS IN MANY INDIVIDUAL EUROPEAN COUNTRIES AREN'T LARGE ENOUGH TO SUPPORT THE BORROWING NEEDS OF GOVERNMENTS AND CORPORATIONS SO MANY OF THEM HAVE TO SELL IN THE BROADER EUROBOND MARKET WHICH IS MOSTLY MADE UP OF EUROPEAN ASIAN AND US INSTITUTIONAL INVESTORS SOME BRITISH INVESTMENT BANKERS CALL THE NEW GENERATION OF UNUSUAL EUROBONDS FUNNIES HERE ARE SOME OF THEM COLLARED FLOATERS THESE WERE DESIGNED BY KIDDER FOR INVESTORS WHO ARE DISENCHANTED WITH THE CURRENT LOW YIELDS ON SHORTTERM SECURITIES DENOMINATED IN US DOLLARS THE INTEREST RATE PAID ON THE BONDS IS RESET EVERY SIX MONTHS ACCORDING TO A FORMULA BUT CAN'T FALL BELOW A PREDETERMINED FLOOR OR RISE ABOVE A PREDETERMINED CAP BECAUSE THE FLOOR IS SET ABOVE CURRENT MARKET RATES INVESTORS ARE FLOCKING TO THE SECURITIES IN DROVES SINCE JULY MORE THAN 115 BILLION OF COLLARED FLOATERS HAVE BEEN SOLD FOR EXAMPLE JP MORGAN & CO RECENTLY SOLD 300 MILLION OF COLLARED FLOATING RATE 12YEAR NOTES THE INTEREST RATE ON THE NOTES WILL BE RESET EVERY SIX MONTHS AT THE LONDON INTERBANK OFFERED RATE OR LIBOR MINUS 015 PERCENTAGE POINT THE RATE CAN'T BE SET LOWER THAN 5 OR HIGHER THAN 8 WITH LIBOR CURRENTLY AT ABOUT 35 THE NOTES INITIALLY PAY INTEREST OF 5 INVESTORS WHO BUY COLLARED FLOATERS ARE BETTING THAT INTEREST RATES WILL REMAIN RELATIVELY STABLE OR RISE MODESTLY IF YOU HAVE A CAP AND A FLOOR ON YOUR FLOATER YOUR HOPE IS THAT INTEREST RATES WON'T GO ABOVE THE CAP SAYS CHRISTOPHER J WILLIAMS A MANAGING DIRECTOR AT WILLIAMS FINANCIAL MARKETS A DIVISION OF JEFFERIES & CO BUT ONCE RATES GO THROUGH THE CAP YOU'RE GETTING A BELOWMARKET RATE THAT'S THE RISK INVERSECOUPON FLOATERS THESE GIVE INVESTORS AN OPPORTUNITY TO BET THAT SHORTTERM INTEREST RATES ESPECIALLY THOSE IN EUROPE WILL FALL SUBSTANTIALLY IN THE NEXT YEAR OR SO THAT BET IS ESPECIALLY POPULAR IN GERMANY WHERE SHORTTERM INTEREST RATES CURRENTLY ARE HIGHER THAN LONGTERM RATES A CONDITION CALLED AN INVERTED YIELD CURVE IN ONE RECENT TRANSACTION GERMAN AUTO MAKER BMW SOLD 250 MILLION MARKS 1526 MILLION WORTH OF 10YEAR BONDS THE BONDS PAY INTEREST OF 9 IN THE FIRST YEAR REVERTING TO A SEMIANNUAL INTEREST PAYMENT THEREAFTER FLOATING AT 12 MINUS THE PREVAILING SIXMONTH LONDON INTERBANK OFFERED RATE FOR MARKS IF LIBOR DECLINES THE COUPON RATE ON THE NOTES WILL RISE PARTLY PAID BONDS MANY OF THESE HAVE BEEN DENOMINATED IN STERLING AND ARE TARGETED TO INVESTORS WHO ARE BULLISH ON BRITISH BONDS INVESTORS CAN STRETCH OUT PAYMENTS FOR THE BONDS BY PUTTING UP A SMALL PERCENTAGE OF THE PURCHASE PRICE NOW AND PAYING THE REST AT A LATER DATE FOR INVESTORS WHO EXPECT PRICES OF BRITISH BONDS TO RISE PARTLY PAID BONDS ARE A WAY YOU CAN LEVERAGE UP YOUR EXPOSURE TO THE MARKET SAYS DAVID SHEATH AT UBS SECURITIES INC A UNIT OF UNION BANK OF SWITZERLAND MOREOVER THERE IS AN ADDED BENEFIT FOR NONBRITISH INVESTORS IF THE VALUE OF STERLING DECLINES FURTHER AGAINST OTHER CURRENCIES BEFORE FINAL PAYMENT IS DUE NONBRITISH INVESTORS CAN BUY THE STERLING THEY NEED TO PAY FOR THEIR BONDS AT CHEAPER PRICES TRADERS SAID THAT BUYERS OF MANY RECENT PARTLY PAID BONDS ARE FOREIGN INVESTORS WHO ARE BEARISH ON STERLING EARLIER THIS MONTH BRITAIN'S HALIFAX BUILDING SOCIETY SOLD 150 MILLION 2231 MILLION OF SEVENYEAR PARTLY PAID BONDS BUYERS OF THE HALIFAX BONDS WHICH HAVE A COUPON OF 7875 PAY ABOUT 20 OF THE PURCHASE PRICE OF THEIR BONDS ON APRIL 14 AND THE REMAINING 80 IN APRIL 1994 SURFS OR STEPUP RECOVERY FLOATERS PIONEERED BY LEHMAN BROTHERS INC THESE VARIABLE RATE NOTES ARE SIMILAR TO COLLARED FLOATERS WITH ONE MAJOR EXCEPTION THE COLLAR ON SURFS IS MUCH WIDER SURFS ARE DESIGNED TO GIVE INVESTORS HIGHERTHANMARKET YIELDS AS LONG AS THE YIELD CURVE REMAINS POSITIVE MEANING THAT SHORTTERM RATES REMAIN LOWER THAN LONGTERM RATES EVEN IF INTEREST RATES SURGE AS LONG AS THE YIELD CURVE IS POSITIVE BUYERS OF SURFS WILL BENEFIT TWO WEEKS AGO TOYOTA MOTOR CREDIT CORP THE US FINANCE ARM OF THE JAPANESE AUTO MAKER SOLD 100 MILLION OF SURFS INTEREST ON THE NOTES WILL BE PAID SEMIANNUALLY AND CALCULATED BY A COMPLEX FORMULA TIED TO 10YEAR US TREASURY NOTES THE NOTES PAY A MINIMUM INTEREST RATE OF 51 AND A MAXIMUM OF 28 FOR THE LIFE OF THE BOND INVESTMENT BANKERS SAY THAT AS LONG AS YIELD ON 10YEAR TREASURY NOTES REMAINS HIGHER THAN SHORTTERM INTEREST RATES THE SURFS SHOULD OUTPERFORM OTHER FLOATINGRATE NOTES BUT IF THE YIELD CURVE EVER INVERTS A SITUATION THAT OCCURS PERIODICALLY IN EUROPE AND THE US INVESTORS WILL WIND UP WITH A FLOATING RATE SECURITY THAT PAYS BELOWMARKET RATES 9303240073 930324 CLINTON BLASTS CLOSED MARKETS OF JAPANESE BY JEFFREY H BIRNBAUM AND BOB DAVIS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON BLASTED JAPAN FOR KEEPING ITS MARKETS CLOSED TO THE US AND SAID HE OPPOSES THE CURRENT LOW TARIFF RATES ON IMPORTS OF JAPANESEMADE MINIVANS IN HIS FIRST FORMAL NEWS CONFERENCE SINCE TAKING OFFICE TWO MONTHS AGO MR CLINTON PUT THE JAPANESE ON NOTICE THAT HE BELIEVES THEY UNFAIRLY PREVENT THE SALE OF USMADE GOODS IN THEIR COUNTRY HE INDICATED THAT HE INTENDS TO BARGAIN HARD TO CHANGE THAT SITUATION ONE ELEMENT OF THAT BARGAINING HE IMPLIED WOULD BE TO DENY LOWTARIFF TREATMENT TO JAPANESEMADE GOODS SUCH AS THE MINIVANS UNTIL TRADE BARRIERS IN JAPAN ARE REDUCED THE PERSISTENCE OF THE TRADE SURPLUS THE JAPANESE ENJOY WITH THE UNITED STATES AND WITH THE REST OF THE DEVELOPED WORLD CAN ONLY LEAD ONE TO THE CONCLUSION THAT THE POSSIBILITY OF OBTAINING REAL EVEN ACCESS TO THE JAPANESE MARKET IS SOMEWHAT REMOTE MR CLINTON ASSERTED CHUCKLING AT HIS USE OF THE TERM SOMEWHAT MR CLINTON SAID HE IS DETERMINED TO TALK TO JAPAN ABOUT A LARGER SET OF TRADE ISSUES INCLUDING MINIVAN TARIFFS ADMINISTRATION TRADE OFFICIALS AS WELL AS SOME LAWMAKERS ARE URGING THE PRESIDENT TO USE THE TARIFF ISSUE AS A BARGAINING CHIP TO PUSH JAPAN TO INCREASE PURCHASES OF US AUTO PARTS OR MAKE BIG CONCESSIONS IN WORLD TRADE TALKS SUCH JAPANESE CONCESSIONS COULD INCLUDE BRINGING DOWN BARRIERS TO RICE IMPORTS AND ALLOWING THE EXPANSION IN JAPAN OF FOREIGNOWNED FINANCIAL SERVICE COMPANIES THE PRESIDENT'S STATEMENT CHEERED US AUTO MAKERS WHO HAVE BEEN PRESSING FOR YEARS TO INCREASE MINIVAN TARIFFS TENFOLD TO 25 THE COMPANIES HAVE ARGUED AND LAST YEAR MR CLINTON AGREED THAT THE BUSH ADMINISTRATION DECIDED TO KEEP THE TARIFFS LOW AS A RESULT OF INFLUENCEPEDDLING BY LOBBYISTS HIRED BY THE JAPANESE IN WASHINGTON I WAS ASTONISHED THAT THE BUSH ADMINISTRATION OVERRULED ITS OWN CUSTOMS OFFICE AND GAVE A 300 MILLIONAYEAR FREEBIE TO THE JAPANESE FOR NO APPARENT REASON MR CLINTON SAID REFERRING TO ESTIMATES OF MINIVAN TARIFFS THAT THE US COULD HAVE COLLECTED FROM THE JAPANESE AND WE GOT NOTHING AND I EMPHASIZE NOTHING IN RETURN HE ADDED THE PRESIDENT'S COMMENTS WERE CLEARLY AHEAD OF HIS OWN GOVERNMENT'S ACTIONS THE EFFORT TO ALTER MINIVAN TARIFFS HAS BEEN BOTTLED UP IN THE TREASURY DEPARTMENT BUREAUCRACY AND AN INTERAGENCY REVIEW OF POLICIES TOWARD JAPAN HAS BEEN SNAGGED IN THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL BOTH ISSUES ARE NOW EXPECTED TO MOVE AHEAD MORE QUICKLY IN TOKYO KENICHIRO SASAE OF THE FOREIGN MINISTRY COUNTERED MR CLINTON'S ATTACKS I DON'T DENY THERE IS AN ELEMENT OF MARKETACCESS RESTRICTIONS BEHIND JAPAN'S TRADE IMBALANCE HE SAID BUT I DON'T THINK THAT IS THE MAJOR REASON WHY WE HAVE THIS BIG SURPLUS MR SASAE SAID THE MAJOR REASONS ARE THE US BUDGET DEFICIT AND JAPAN'S RECESSION WHICH HAS REDUCED DEMAND FOR IMPORTS HE ADDED THAT THE JAPANESE GOVERNMENT IS DRAFTING A MAJOR FISCAL STIMULUS PACKAGE TO HELP CUT THE SURPLUS REGARDING THE MINIVAN ISSUE MR SASAE REPEATED TOKYO'S VIEW THAT ANY INCREASE IN THE TARIFF WOULD VIOLATE RULES SET BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE OTHER JAPANESE OFFICIALS HAVE THREATENED IN RECENT WEEKS TO FILE A FORMAL COMPLAINT WITH GATT IF THE CLINTON ADMINISTRATION DOES INCREASE THE TARIFF BESIDES ADDRESSING JAPAN MR CLINTON TOUCHED ON A RANGE OF OTHER ISSUES DURING THE NEWS CONFERENCE FROM RUSSIA TO MILITARY SPENDING TO OVERHAULING CAMPAIGNFINANCE LAWS THE PRESIDENT ALSO SAID HE WILL ACT AS SWIFTLY AS HE CAN TO NOMINATE A REPLACEMENT FOR RETIRING SUPREME COURT JUSTICE BYRON WHITE HE SAID HE WOULDN'T ASK POTENTIAL CANDIDATES THEIR VIEWS ON SPECIFIC CASES BUT SAID HE WANTS A NOMINEE WHO BELIEVES STRONGLY THAT THERE IS A CONSTITUTIONAL RIGHT TO PRIVACY THE RIGHT TO PRIVACY WAS A FOUNDATION OF THE 1973 ROE VS WADE DECISION THAT ESTABLISHED SPECIAL CONSTITUTIONAL PROTECTIONS FOR THE RIGHT TO ABORTION MR CLINTON SAID HE IS PLACING SPECIAL EMPHASIS ON HIS ADMINISTRATION'S DRIVE TO CHANGE THE US HEALTHCARE SYSTEM SPECIFICALLY HE VOWED THAT HIS OWN HEALTHCARE PLAN DUE ON MAY 1 WOULD PROVIDE HEALTHINSURANCE COVERAGE TO ALL AMERICANS BY THE END OF HIS FOURYEAR TERM I WILL PRESENT A PLAN WHICH WOULD PROVIDE THE AMERICAN PEOPLE THE OPPORTUNITY TO HAVE THE SECURITY OF HEALTHCARE COVERAGE BY THE END OF MY FIRST TERM HE SAID WHETHER OR NOT THAT PLAN WILL PASS THE CONGRESS IN THE FORM I WILL PROPOSE IT IS STILL A MATTER FOR CONJECTURE BUT I THINK WE'VE GOT AN EXCELLENT CHANCE OF PASSING IT THE PRESIDENT ALSO INDICATED THAT HE IS LIKELY TO PROPOSE HIGHER TAXES ON CORPORATIONS OR PARTS OF THE HEALTH INDUSTRY TO PAY FOR HIS HEALTH PLAN 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 IN ADDITION HE SAID THAT SOME TYPE OF COVERAGE FOR LONGTERM CARE WOULD BE PART OF HIS PLAN BUT HE SAID DETAILS HAVEN'T BEEN WORKED OUT BECAUSE OF CONTINUING CONCERNS ABOUT COST MR CLINTON REITERATED HIS SUPPORT FOR CAMPAIGNFINANCE CHANGES AND SAID HE SOON WILL HAVE A PROPOSAL TO LIMIT BOTH CAMPAIGN SPENDING AND GIVING HE SAID HE WOULD FAVOR PROHIBITING SOCALLED SOFT MONEY CONTRIBUTIONS FOR PRESIDENTIAL CAMPAIGNS EARLIER HE HAD SUGGESTED HE WOULD ELIMINATE SUCH CONTRIBUTIONS ENTIRELY SOFT MONEY CONSISTS OF CONTRIBUTIONS BY INDIVIDUALS AND CORPORATIONS TO POLITICAL PARTIES RATHER THAN TO CANDIDATES THE PRESIDENT ALSO RAISED HOPES THAT NEXT WEEK'S FOREST CONFERENCE IN PORTLAND ORE WILL PRODUCE A RESOLUTION TO THE LONGSTANDING AND BITTER DISPUTE BETWEEN ENVIRONMENTALISTS AND LOGGERS OVER THE PROTECTION OF OLDGROWTH FORESTS IN THE PACIFIC NORTHWEST HE SAID HE WANTS TO LISTEN HAMMER OUT THE ALTERNATIVES AND THEN TAKE A POSITION THAT I THINK WILL BREAK THE LOGJAM BUT ANY SOLUTION WILL PROBABLY MAKE EVERYBODY MAD HE SAID ADDING I WILL TRY TO BE FAIR TO THE PEOPLE WHOSE LIVELIHOODS DEPEND ON THIS AND FAIR TO THE ENVIRONMENT THAT WE ARE OBLIGATED TO MAINTAIN IN ADDITION HE SAID HE HOPED TO ADOPT A UNIFORM LEGAL POSITION ACROSS THE VARIOUS GOVERNMENT AGENCIES THAT DEAL WITH THE ISSUE AND THAT FREQUENTLY HAVE DISAGREED ABOUT HOW TO MANAGE THE FORESTS 9303240072 930324 REVIEW & OUTLOOK EDITORIAL ASIDES QUAYLE WATCH WE TOO ARE IMPRESSED WITH THE EXTRAORDINARY ARTICLE ON THE STATE OF THE AMERICAN FAMILY BY BARBARA DAFOE WHITEHEAD IN THE CURRENT ISSUE OF THE ATLANTIC MAGAZINE ONE CAN'T BUT NOTICE THE STRIKING COVER DAN QUAYLE WAS RIGHT THIS GOT OUR EDITOR'S PEN TO TWITCHING AND IT MOVED ACROSS THE ATLANTIC COVER TO WRITE DAN QUAYLE IS RIGHT RIGHT MURPHY 9303240071 930324 BUSINESS BRIEF CURTICE BURNS FOODS INC AGWAY INC IS INVESTIGATING SALE OF ITS STAKE IN COMPANY CURTICE BURNS FOODS INC SAID ITS MAJOR SHAREHOLDER AGWAY INC IS INVESTIGATING THE SALE OF ITS STAKE IN THE FOOD PROCESSOR AND MARKETER CURTICE BASED IN ROCHESTER NY SAID ITS BOARD HAS FORMED A SPECIAL COMMITTEE TO EVALUATE AN APPROPRIATE COURSE OF ACTION CONCERNING AGWAY'S POSSIBLE MOVE THE COMMITTEE RETAINED DONALDSON LUFKIN & JENRETTE AS AN ADVISER CURTICE HAS THE RIGHT OF FIRST REFUSAL ON AGWAY'S CLASS B HOLDINGS IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY CURTICE'S CLASS A SHARES GAINED 1125 TO 1525 SYRACUSE NYBASED AGWAY A FARM COOPERATIVE OWNS 13 OF CURTICE'S CLASS A SHARES AND 99 OF ITS CLASS B SHARES OUTSTANDING AGWAY TOLD CURTICE IT WANTS TO FOCUS ON ITS AGRICULTURE CONSUMER RETAILING ENERGY INSURANCE AND LEASING BUSINESSES 9303240070 930324 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN COMMUNITY ENVIRONMENT MINISTERS ADOPTED LEGISLATION ESTABLISHING A VOLUNTARY SYSTEM FOR ENVIRONMENTAL AUDITING OF COMPANIES THE DECISION IS EXPECTED TO ACCELERATE MOVES IN EUROPE TO REDUCE POLLUTION BY IMPROVING ENVIRONMENTAL MANAGEMENT PARTICIPATING COMPANIES MUST CONDUCT AUDITS AT LEAST EVERY THREE YEARS AND MAKE INTERIM PERFORMANCE STATEMENTS EC GOVERNMENTS WILL DESIGNATE INDEPENDENT PANELS BY THE END OF 1994 TO MONITOR THE COMPANIES THE PROGRAM COULD HELP PROTECT AGAINST ENVIRONMENTAL LIABILITY PARTICULARLY AFTER CORPORATE TAKEOVERS BUT THE ACTION FELL SHORT OF THE COMMISSION'S HOPES TO REQUIRE THE AUDITS OF COMPANIES ACROSS MANY SECTORS STILL SOME FIRMS EXPRESSED DOUBTS ABOUT THE NEED FOR AN EC RULE GIVEN THAT ENVIRONMENTAL MANAGEMENT STANDARDS ARE BEING DEVELOPED BY OTHER STANDARDSSETTING BODIES US AGRICULTURAL EXPORTS TO CENTRAL AMERICA GREW 10 A YEAR FROM 1986 TO 1992 REACHING 578 MILLION LAST YEAR AND THE REGION HAS HIGH POTENTIAL FOR MORE SHIPMENTS OF CONSUMERORIENTED HIGHVALUE PRODUCTS SAID THE US FOREIGN AGRICULTURAL SERVICE CENTRAL AMERICAN COUNTRIES DEPENDENT ON BANANA AND COFFEE EXPORTS HAVE SPURRED THEIR ECONOMIES BY EASING IMPORT PERMIT RULES AND OTHER NONTARIFF TRADE BARRIERS AND SLASHING FOOD LEVIES FURTHER RELAXATION OF CONTROLS IS SEEN THE UNITED NATIONS SAID RETIREES WILL SOON START TO OUTNUMBER CHILDREN IN EUROPE AND NORTH AMERICA FOR THE FIRST TIME POSING A HUGE FINANCIAL CHALLENGE WELL INTO THE 21ST CENTURY UN AGENCIES IN GENEVA SAID THE NUMBER OF PEOPLE OLDER THAN 60 IN THE TWO REGIONS HAS MORE THAN DOUBLED TO 185 MILLION FROM 90 MILLION IN 1950 AND MAY REACH 310 MILLION IN 2025 BY THEN THE ELDERLY WILL OUTNUMBER CHILDREN UNDER 15 BY ONETHIRD REVERSING THE CURRENT SITUATION AND POSING ECONOMIC PROBLEMS FOR WESTERN NATIONS THAT TRY TO MAINTAIN EXISTING STANDARDS OF SOCIAL AND HEALTH CARE A GERMAN GOVERNMENT PANEL CLEARED THE FIRST MAJOR PLANS FOR MOVING THE CAPITAL FROM BONN TO BERLIN PICKING SITES FOR THE FOREIGN AND INTERIOR MINISTRIES AND THE PRESIDENT'S OFFICE ALMOST TWO YEARS HAVE PASSED SINCE PARLIAMENT VOTED TO RELOCATE THE REUNIFIED FEDERAL GOVERNMENT SOME POLITICIANS ARE STILL FIGHTING TO KEEP GOVERNMENT OFFICES AND WORKERS IN BONN THE COMMISSION OF BERLIN AND FEDERAL LAWMAKERS APPROVED PLANS TO RAZE THE FORMER COMMUNIST REGIME'S ASBESTOSFILLED PALACE OF THE REPUBLIC IN EASTERN BERLIN AND ERECT FOREIGN MINISTRY QUARTERS THERE KENYA BRAKED ECONOMIC REFORMS SAYING GLOBAL LENDERS' DEMANDS CAUSED A RUINOUS TREND IT SAID MULTINATIONAL LENDING AGENCIES DIDN'T PROVIDE PROMISED FUNDS TO SUPPORT REFORMS BEGUN IN 1989 AND STEPPED UP LAST MONTH WHEN EXCHANGE RATES WERE RELAXED AND SOME PRICE CONTROLS REMOVED RETAIL PRICES SOARED AS MUCH AS 50 A 65 CURRENCY DEVALUATION HURT CONSUMERS DESPITE THE ECONOMIC CHANGES AND A MOVE TO POLITICAL PLURALISM DONOR NATIONS SAY KENYA STILL HASN'T MET CONDITIONS FOR RESUMPTION OF AID KENYA'S FOREIGN DEBT TOTALS 68 BILLION HUNGARY'S GROSS DOMESTIC PRODUCT DROPPED BETWEEN 4 AND 6 LAST YEAR DEEPER THAN THE 2 MAXIMUM DECLINE EXPECTED PRELIMINARY GDP TOTALED 28 TRILLION FORINTS 3292 BILLION EXPORTS GREW BETWEEN 1 AND 2 FAR LESS THAN THE PROJECTED 6 TO 9 RISE BECAUSE DROUGHT CUT FARM SHIPMENTS IMPORTS FELL 6 DOMESTIC CONSUMPTION FELL BETWEEN 2 AND 3 AS INFLATION ADJUSTED PER CAPITA INCOME DROPPED AND SAVINGS JUMPED THE OUTLOOK FOR JAPAN'S LACKLUSTER ECONOMY BRIGHTENED A BIT AS THE INDEX OF LEADING INDICATORS ROSE TO THE SOCALLED BOOMORBUST DIVIDING LINE OF 50 IN JANUARY FOR THE FIRST TIME IN 10 MONTHS THE READING WAS UP SHARPLY FROM A REVISED 308 FOR DECEMBER TOPPING THE 50 MARK SIGNALS THE ECONOMY WILL EXPAND THREE TO SIX MONTHS AHEAD BUT THE ECONOMY'S SLUGGISHNESS WAS UNDERLINED BY CONTINUING DECLINES IN INDICATORS FOR INDUSTRIAL PRODUCTION SHIPMENTS AND INVENTORIES AMID WEAK DEMAND OTHER INDICATORS SHOW THE ECONOMY MAY BE BOTTOMING OUT JAPAN'S BROADLY DEFINED M2 MONEY SUPPLY GREW 02 IN FEBRUARY FOR THE FIRST YEARTOYEAR RISE IN SIX MONTHS AS LENDING AND GOVERNMENT OUTLAYS EXPANDED THOUGH CORPORATE INVESTMENT REMAINED WEAK NEWCAR SALES IN EARLY MARCH ROSE FOR THE FIRST TIME IN NINE MONTHS AS CONSUMERS LOOSENED WALLETS BUT ANOTHER GLUM CLUE EMERGED NONPERFORMING LOANS HELD BY JAPAN'S 21 MAJOR PRIVATE BANKS CONTINUED TO SWELL THOUGH THE PACE OF GROWTH SLOWED SUBSTANTIALLY GERMANY'S HDE RETAILERS ASSOCIATION CITING SPREADING RECESSION PREDICTED 1993 SALES WOULD BE UNCHANGED FROM A YEAR EARLIER IN THE 11 WESTERN STATES AND RISE AN INFLATIONADJUSTED 3 IN THE FIVE EASTERN STATES EVERY YEAR NORTH KOREA BOUGHT MILLIONS OF DOLLARS OF FOREIGN LUXURY GOODS AS GIFTS FOR SUPREME LEADER KIM IL SUNG ON HIS BIRTHDAY APRIL 15 NO MORE ACKNOWLEDGING ECONOMIC PROBLEMS SINCE THE SOVIET COLLAPSE CUT ITS AID NORTH KOREA WILL DISCONTINUE THE LARGESS A WESTERN ANALYST SAID 9303240069 930324 BUSINESS BRIEF PNC BANK CORP PROFIT MARGINS MAY RETURN TO LEVEL OF 25 THIS YEAR PNC BANK CORP'S CHAIRMAN THOMAS H O'BRIEN CITING PNC'S MIX OF BUSINESS LINES COST CONTROLS AND CREDITQUALITY IMPROVEMENTS SAID THE PITTSBURGHBASED BANK HOLDING COMPANY COULD RETURN TO ITS HISTORIC PROFITMARGIN LEVEL OF ABOUT 25 AS EARLY AS THIS YEAR MR O'BRIEN WHO SPOKE TO ANALYSTS IN NEW YORK SAID PNC'S GOAL IS TO PRODUCE NETINCOME GROWTH OF 10 TO 15 IN ITS MATURE RETAIL AND CORPORATE LENDING BUSINESSES AND SOMETHING IN EXCESS OF THAT IN ITS GROWTH BUSINESSES INCLUDING MORTGAGE BANKING MUTUAL FUNDS AND SECURITIES MR O'BRIEN WHO IS ALSO CHIEF EXECUTIVE OFFICER SAID PNC HOPES TO POST REVENUE GROWTH OF 6 TO 12 IN ITS MORE MATURE LINES AS IT CONTINUES TO FOCUS ON COST CONTROL IN GROWTH BUSINESSES MR O'BRIEN SAID PNC MAY SEE EXPENSE GROWTH WHICH EXCEEDS THAT OF THE REST OF THE COMPANY IN THE SHORT RUN 9303240068 930324 INSIDE TRACK OPTIMISTIC NATIONAL HEALTH LAB INSIDERS BUY SHARES BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOP EXECUTIVES AT NATIONAL HEALTH LABORATORIES WHICH LAST YEAR PAID THE LARGEST FINE EVER IMPOSED BY THE US GOVERNMENT FOR MEDICARE FRAUD APPARENTLY BELIEVE THE WORST IS OVER THE COMPANY'S CHIEF EXECUTIVE OFFICER ITS CHIEF OPERATING OFFICER AND A DIRECTOR HAVE SPENT ABOUT 13 MILLION ON NATIONAL HEALTH LABS SHARES SINCE DECEMBER LOADING UP ON THE STOCK AT PRICES AT OR NEAR ITS TWOYEAR LOW FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW BETWEEN DEC 28 AND MARCH 3 THE THREE INSIDERS PURCHASED 86570 SHARES AT PRICES RANGING FROM 13375 TO 17375 EACH ACCORDING TO THE FILINGS IT WAS ONLY LAST DEC 18 THAT NATIONAL HEALTH PLEADED GUILTY TO GOVERNMENT CHARGES OF HEALTHCARE FRAUD INVOLVING CLINICAL TESTING PROCEDURES AND THE FEDERAL MEDICARE PROGRAM THE LA JOLLA CALIF COMPANY AGREED TO PAY 1104 MILLION TO SETTLE THE CHARGES WHICH FOLLOWED A TWOYEAR US GRAND JURY INVESTIGATION THE GOVERNMENT SAID THE COMPANY ADDED LABORATORY TESTS FOR CHOLESTEROL AND IRON STORAGE TESTS THE US GOVERNMENT CHARGED WERE OFTEN NOT MEDICALLY NECESSARY TO THE STANDARD PACKAGE OF BLOOD TESTS ORDERED BY THOUSANDS OF PHYSICIANS NATIONWIDE MEDICARE PAID 31 MILLION TO NATIONAL HEALTH LABS FOR IRON TESTS IN 1991 COMPARED WITH 500000 IN 1988 BEFORE THE TESTS WERE ADDED TO THE STANDARD SERIES THE GOVERNMENT SAID NATIONAL HEALTH STOCK HAS BEEN SINKING FOR MONTHS ON BOTH NEWS OF THE FRAUD SCANDAL AND A GENERAL WEAKNESS IN THE HEALTHCARE INDUSTRY WALL STREET IS ANTICIPATING THAT PRESIDENT CLINTON'S EFFORTS TO REIN IN SKYROCKETING US HEALTHCARE COSTS WILL TRIM THE PROFITABILITY OF HUGE INDEPENDENT LABORATORY CHAINS SUCH AS NATIONAL HEALTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NATIONAL HEALTH SHARES CLOSED YESTERDAY AT 1525 UP 375 CENTS THE RECENT INSIDER BUYERS INCLUDE CHIEF EXECUTIVE OFFICER JAMES MAHER FORMER VICE CHAIRMAN OF FIRST BOSTON CORP WHO JOINED NATIONAL HEALTH LABS AFTER THE SETTLEMENT HE BOUGHT 40000 SHARES FOR 14 EACH ON FEBRUARY 23 A 40 INCREASE IN HIS TOTAL HOLDINGS SEC FILINGS SHOW HE WAS JOINED BY THE COMPANY'S CHIEF OPERATING OFFICER DAVID FLAUGH A FIRSTTIME BUYER WHO PURCHASED 3570 SHARES AND BY A DIRECTOR WHO PURCHASED 43000 SHARES MR MAHER WAS UNAVAILABLE FOR COMMENT AND MR FLAUGH DECLINED TO COMMENT NATIONAL HEALTH LABS POSTED A 506 MILLION FOURTHQUARTER LOSS AFTER TAKING A 136 MILLION PRETAX CHARGE RELATED TO THE SETTLEMENTS THAT LOSS WAS EQUAL TO 53 CENTS A SHARE COMPARED WITH THE YEAREARLIER QUARTER WHEN IT REPORTED NET INCOME OF 27 CENTS A SHARE EXCLUDING THE CHARGE THE QUARTERLY NET INCOME WOULD HAVE BEEN 32 CENTS A SHARE THE BULLISHNESS OF THE COMPANY'S INSIDERS RUNS COUNTER TO THE ACTIONS OF ONE WELLKNOWN INVESTOR IN FEBRUARY 1992 FINANCIER AND REVLON CO CHAIRMAN RONALD O PERELMAN CUT HIS STAKE IN NATIONAL HEALTH LABS TO ABOUT 21 FROM 37 AS PART OF A BROADER SALE OF HIS ASSETS TO REDUCE DEBT THE NATIONAL HEALTH STAKE IS HELD BY A UNIT OF MR PERELMAN'S MACANDREWS & FORBES HOLDINGS INC NATIONAL HEALTH WAS WHOLLY OWNED BY MR PERELMAN UNTIL 1988 AND ON WALL STREET NOT ALL IS FORGIVEN WHILE SOME ANALYSTS HAVE RAISED THEIR EARNINGS ESTIMATES IN THE MONTHS SINCE THE FINE WAS PAID THEY ARE EXPECTING EARNINGS OF ABOUT 145 A SHARE IN 1993 THERE HAVE BEEN FEW BUY RECOMMENDATIONS DESPITE THE CONSIDERABLE SELLOFF IN THE STOCK PAINEWEBBER INC ANALYST DAMON BRUNDAGE A BULL ON THE STOCK FOR MOST OF LAST YEAR NOW ASSIGNS NATIONAL HEALTH LABS A NEUTRAL RATING ADDING THAT WHILE THE STOCK IS ATTRACTIVELY PRICED IT IS TOO EARLY TO RECOMMEND PURCHASE ON THE PLUS SIDE THEY DON'T SEEM TO HAVE BEEN SIGNIFICANTLY IMPACTED BY THE FRAUD SCANDAL HE SAID THERE DON'T SEEM TO HAVE BEEN SIGNIFICANT DEFECTIONS FROM THEIR PHYSICIAN CLIENT BASE AND THEY HAVEN'T LOST A SINGLE SALESMAN HE CAUTIONS THAT THE COMPANY FACES DOUBLE JEOPARDY IN 1994 WITH THE POSSIBILITY THAT A GOVERNMENT OVERHAUL OF THE HEALTHCARE SYSTEM WILL RESULT IN LOWER REIMBURSEMENTS TO CLINICAL LABS BOTH FROM INSURANCE COMPANIES AND MEDICARE STILL DAVID COLEMAN EDITOR OF THE VICKERS WEEKLY INSIDER REPORT A NEWSLETTER THAT TRACKS INSIDER BUYING AND SELLING SEES NATIONAL HEALTH AS A POTENTIAL BUY ALTHOUGH WITH HIGHERTHANNORMAL RISK HE SAID THE RECENT INSIDER BUYING IS SIGNIFICANT NOT ONLY BECAUSE IT WAS A CHANGE IN SENTIMENT NATIONAL HEALTH LABS INSIDERS HAVE BEEN NET SELLERS OF STOCK IN RECENT YEARS BUT BECAUSE EXECUTIVES AT THE COMPANY HAVE BEEN GOOD MARKET TIMERS IN THE PAST IT'S LIKE THE STOCK HITS A CERTAIN LEVEL AND BING' THERE ARE THREE BUYERS HE SAID THIS COLUMN REPORTED IN NOVEMBER 1990 THAT ROBERT DRAPER THEN PRESIDENT OF NATIONAL HEALTH LABS SOLD 99 OF HIS HOLDINGS IN OCTOBER 1990 LAST DECEMBER HE PLEADED GUILTY TO TWO CRIMINAL COUNTS IN CONNECTION WITH THE MEDICARE FRAUD CHARGES AGAINST THE COMPANY AND STEPPED DOWN AS THE CONCERN'S PRESIDENT 9303240067 930324 LAW RENO SEEKS US LAW TO PROTECT WOMEN FROM PROTESTS OUTSIDE ABORTION CLINICS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ATTORNEY GENERAL JANET RENO SAID SHE FAVORS FEDERAL LEGISLATION TO PROTECT WOMEN FROM ANTIABORTION PROTESTERS WHO ATTEMPT TO DENY ENTRY TO ABORTION CLINICS I THINK A WOMAN'S RIGHT TO CHOOSE SHOULD BE PROTECTED SHE SAID DURING HER FIRST FORMAL PRESS CONFERENCE SINCE TAKING OFFICE CURRENT FEDERAL LAW SHE SAID DOESN'T ADEQUATELY COVER THE ACTIONS OF THOSE WHO PHYSICALLY ATTEMPT TO STOP WOMEN FROM GETTING ABORTIONS A FEDERAL LAW IS NEEDED SHE SAID BECAUSE MUCH OF THE ACTIVITY INVOLVES THE CROSSING OF STATE LINES I DON'T THINK THE REMEDIES UNDER FEDERAL LAW ARE ADEQUATE AT THIS POINT SHE ADDED IN JANUARY THE SUPREME COURT RULED THAT A FEDERAL CIVIL RIGHTS LAW COULDN'T BE USED TO STOP PEOPLE WHO ATTEMPT TO PREVENT ABORTIONS BILLS MAKING IT A FEDERAL OFFENSE TO BLOCKADE ABORTION CLINICS HAVE BEEN INTRODUCED IN BOTH HOUSES OF CONGRESS RANDALL TERRY FOUNDER OF THE ANTIABORTION ORGANIZATION OPERATION RESCUE SAID MS RENO IS TARGETING ABORTION FOES RATHER THAN OTHER ACTIVISTS FOR POLITICAL PERSECUTION SITINS ARE A PART OF POLITICAL HERITAGE HE SAID SHE IS SINGLING US OUT BECAUSE SHE DESPISES OUR VIEWS AND SHE SHOULD BE ASHAMED MS RENO SAID SHE HAS MADE NO DECISION ON WHETHER FEDERAL BUREAU OF INVESTIGATION DIRECTOR WILLIAM SESSIONS SHOULD BE FIRED WILLIAM BARR THE PREVIOUS ATTORNEY GENERAL ACCUSED MR SESSIONS OF ETHICAL VIOLATIONS I HAVE NOT CONCLUDED HE SHOULD BE REMOVED SHE SAID I HAVE NOT CONCLUDED HE SHOULD STAY BECAUSE I HAVE NOT CONCLUDED MY REVIEW OF THE MATTER AT A NEWS CONFERENCE LATER YESTERDAY PRESIDENT CLINTON ALSO SAID NO DECISION HAS BEEN MADE ON THE DIRECTOR'S STATUS MS RENO SAID THE DECISION ON MR SESSIONS WOULDN'T BE LINKED TO THE THREEWEEK STANDOFF BETWEEN FEDERAL AGENTS AND A RELIGIOUS GROUP IN WACO TEXAS MR SESSIONS REACTING TO A REPORT THAT WHITE HOUSE OFFICIALS HAD INTERVIEWED A POSSIBLE NEW FBI CHIEF SAID HE HAS HAD NO DISCUSSIONS WITH EITHER THE ATTORNEY GENERAL OR THE PRESIDENT REGARDING THE REMAINDER OF MY TERM IN OFFICE I REMAIN CONFIDENT THAT I WILL GET A FULL AND FAIR HEARING OF THE ENTIRE MATTER BY BOTH THE ATTORNEY GENERAL AND THE PRESIDENT OF THE UNITED STATES BEFORE ANY DECISION IS MADE ON ANOTHER ISSUE MS RENO SAID SHE HAS REQUESTED THE RESIGNATIONS OF ALL US ATTORNEYS A COMMON PRACTICE WHEN THE WHITE HOUSE CHANGES PARTIES SHE ADDED THAT ANY CHANGES WOULD BE MADE IN A WAY THAT DON'T DISRUPT PENDING CASES MS RENO ALSO SAID SHE HASN'T REVIEWED THE ALLEGATIONS OF CORRUPTION AGAINST REP DAN ROSTENKOWSKI D ILL WHICH ARE BEING INVESTIGATED BY THE US ATTORNEY FOR THE DISTRICT OF COLUMBIA 9303240066 930324 BUSINESS BRIEF CHALONE WINE GROUP LTD COMPANY HAD 85000 LOSS DURING THE FOURTH QUARTER CHALONE WINE GROUP LTD REPORTED A FOURTHQUARTER NET LOSS OF 85000 OR TWO CENTS A SHARE AND SAID IT IS OUT OF COMPLIANCE WITH CERTAIN DEBT COVENANTS THE SAN FRANCISCO WINE MAKER AND MARKETER REPORTED REVENUE INCREASED 5 TO 53 MILLION FROM 5 MILLION A YEAR EARLIER A YEAR AGO THE COMPANY HAD NET INCOME OF 270000 OR EIGHT CENTS A SHARE CHALONE BLAMED PRICE CUTTING INCREASED OPERATING EXPENSES AND HIGHER INTEREST COSTS IT SAID IT IS NEGOTIATING WITH CERTAIN EXISTING HOLDERS TO BUY 900000 COMMON SHARES AT 7 EACH IN THE PROPOSED DEAL CHALONE WOULD ALSO ISSUE FIVEYEAR WARRANTS TO PURCHASE ABOUT 900000 ADDITIONAL COMMON SHARES AT 7 EACH CHALONE CURRENTLY HAS ABOUT 38 MILLION SHARES OUTSTANDING THE COMPANY SAID PROCEEDS WILL BE USED TO BRING CHALONE INTO COMPLIANCE WITH CERTAIN FINANCIAL COVENANTS IN CREDIT AGREEMENTS WITH ITS PRIMARY LENDERS IN OVERTHECOUNTER TRADING YESTERDAY CHALONE CLOSED AT 750 DOWN 25 CENTS 9303240065 930324 STOCK BOOM FAILS TO SPUR BULL MARKET IN SEATS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TRADERS ARE BUYING AND SELLING MORE STOCK THAN EVER BEFORE BUT IT'S HARD TO TELL THERE'S A STOCK MARKET BOOM JUDGING BY SEAT PRICES ON THE NATION'S BIGGEST STOCK EXCHANGE EVEN THOUGH AVERAGE DAILY TRADING VOLUME ON THE NEW YORK STOCK EXCHANGE IS AT RECORD LEVELS THIS YEAR PRICES OF BIG BOARD SEATS STILL ARE FAR BELOW THE 1 MILLIONPLUS PRICE TAGS REPEATEDLY PAID DURING THE 1987 BULL MARKET SEAT PRICES HAVE EVEN FALLEN FROM THEIR MORE RECENT HIGHS LAST YEAR GROWING PRESSURES DURING THE PAST FEW YEARS ON SECURITIES FIRMS TO REDUCE THE COMMISSIONS THEY CHARGE BIG CUSTOMERS TO TRADE HAS LED TO COSTCUTTING THROUGHOUT THE INDUSTRY THAT HAS MADE STOCK EXCHANGE SEATS LESS VALUABLE SEAT PRICES ARE TELLING YOU THAT THOSE DAYS OF HIGH PROFITS AND HIGH RETURNS FOR BROKERS ARE NOT HERE YET SAID NICHOLAS GIORDANO PRESIDENT OF THE PHILADELPHIA STOCK EXCHANGE AT THE SAME TIME A RASH OF MERGERS HAVE LED MANY BROKERAGE FIRMS TO REDUCE PERSONNEL ON THE FLOOR OF THE BIG BOARD THE RECENTLY ANNOUNCED MERGER BETWEEN PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO AND SHEARSON LEHMAN BROTHERS INC'S BIG BROKERAGE UNIT WILL TAKE AN EVEN FURTHER TOLL STOCK EXCHANGE SEATS ARE OWNED BY BROKERAGE FIRMS INDEPENDENT TRADERS ON THE FLOOR AND SPECIALISTS WHO MAKE MARKETS IN INDIVIDUAL STOCKS THROUGHOUT MOST OF THE 1980S SEAT PRICES GENERALLY TENDED TO TRACK THE TREND OF STOCK PRICES AND TRADING VOLUME A STRONG MARKET IN STOCKS WOULD SPARK A BULL MARKET IN SEATS WHICH CONFER THE RIGHT TO BUY OR SELL THE 2658 STOCK ISSUES LISTED ON THE BIG BOARD AND TO CHARGE A COMMISSION TO NONMEMBERS FOR THAT SERVICE BUT EVEN THOUGH THE DOW JONES INDUSTRIAL AVERAGE STANDS NEAR ITS ALLTIME HIGH AND TRADING VOLUME THIS YEAR HAS AVERAGED A RECORD 2706 MILLION SHARES A DAY A SEAT ON THE BIG BOARD RECENTLY SOLD FOR 575000 THAT WAS UP 15 FROM THE LAST PREVIOUS SALE IN JANUARY BUT STILL BELOW LAST YEAR'S PEAK OF 600000 MORE IMPORTANT THE PRICE IS ANEMIC WHEN COMPARED WITH THE RECORD 115 MILLION PAID FOR AN EXCHANGE SEAT BACK IN SEPTEMBER 1987 SHORTLY BEFORE THE 1987 STOCKMARKET CRASH YOUR ABILITY TO INCREASE THE AMOUNT YOU EARN BY HOLDING A SEAT HAS NOT JUMPED ANYWHERE NEAR AS MUCH AS THE AGGREGATE INCREASE IN TRADING VOLUME SAID ROBERT FAGENSON MANAGING PARTNER AT FAGENSON FRANKEL STREICHER & COHEN A NEW YORK STOCK EXCHANGE SPECIALIST FIRM THE DECLINE IN NEW YORK STOCK EXCHANGE SEAT PRICES ALSO REFLECTS THE SUBTLE BUT STEADY EROSION OF ITS FRANCHISE BY OFFEXCHANGE TRADING ALTHOUGH BIG BOARD TRADING VOLUME SWELLED TO A RECORD LAST YEAR ONLY 645 OF TRADING IN NEW YORK STOCK EXCHANGELISTED SHARES OCCURRED THROUGH THE EXCHANGE AND THAT WAS DOWN FROM 67 IN 1991 AND 824 OF ALL TRADES A DECADE AGO MUCH OF THE LOST TRADING VOLUME IS SMALL ORDERS THAT TEND TO GENERATE FATTER COMMISSIONS SOME BROKERS STEER ORDERS TO OFFEXCHANGE SYSTEMS SUCH AS ONE RUN BY BERNARD MADOFF BECAUSE THEY CAN EXECUTE TRADES MORE CHEAPLY MR MADOFF'S ELECTRONIC TRADING SYSTEM EXECUTES ABOUT 740 MILLION OF TRADES EACH DAY OR ABOUT 9 OF THE BIG BOARD'S TRADING VOLUME AND THAT PROPORTION HAS BEEN RISING FOR THE PAST FEW YEARS THOUGH SOME INDUSTRY EXECUTIVES THINK THE BIG BOARD WILL NEVER REGAIN ITS FRANCHISE AND SEATS WILL NEVER FETCH 1 MILLION AGAIN NOT EVERYONE IS SO BEARISH THERE ARE ALREADY SUBTLE SIGNS THAT SUGGEST SEAT PRICES COULD RISE FURTHER ESPECIALLY IF STOCK PRICES KEEP ON CLIMBING SEAT LEASES FOR INSTANCE ARE BECOMING HARDER TO FIND I HAVE PEOPLE LOOKING TO LEASE SEATS AND I DON'T HAVE LESSORS TO HOOK THEM UP WITH SAYS JAMES E BUCK SENIOR VICE PRESIDENT OF THE NEW YORK STOCK EXCHANGE EVENTUALLY THAT SCARCITY OF SEATS FOR LEASE WILL SPILL OVER INTO THE MARKET FOR PURCHASED SEATS SAYS CHRISTOPHER QUICK HEAD OF BIG BOARD FLOOR OPERATIONS AT QUICK & REILLY GROUP THE NATION'S THIRD LARGEST DISCOUNT BROKER LEASE SEAT PRICES NOW RANGE BETWEEN 88000 AND 110000 MODERATELY HIGHER THAN LAST YEAR WHEN LEASE SEATS FETCHED BETWEEN 70000 AND 100000 ANOTHER SIGN OF STEPPEDUP DEMAND IS THE DEARTH OF PHYSICAL ACCESS MEMBERSHIPS THE EXCHANGE HAS 24 OF THESE THAT CONFER ON THE HOLDER VIRTUALLY ALL THE RIGHTS OF MEMBERSHIPS MR BUCK SAYS THAT ABOUT A YEAR AGO THERE WERE 10 UNUSED PHYSICAL ACCESS MEMBERSHIPS AND EVEN AS LATE AS NOVEMBER THERE WERE FOUR MEMBERSHIPS THAT NO ONE WANTED BUT RIGHT NOW ALL ARE USED UP SAYS MR BUCK VOLUME IS HIGH AND PEOPLE HAVE NEEDED SEATS UNLIKE MR QUICK AND OTHERS LASZLO BIRINYI WHO HEADS A CONSULTING FIRM THAT BEARS HIS NAME IS SKEPTICAL THAT THE DEMAND FOR LEASE SEATS WILL TRANSLATE INTO HIGHER SEAT PRICES MANY BROKERAGE FIRMS DON'T EXPECT STOCK TRADING REVENUE TO BE AS IMPORTANT TO THEIR BOTTOM LINE OVER THE NEXT FEW YEARS AS A RESULT FEW ARE WILLING TO INVEST IN SEATS AS EAGERLY AS THEY DID A DECADE AGO IF YOU WERE THE HEAD OF A BROKERAGE FIRM AND YOU THOUGHT THE BUSINESS WAS EXPANDING YOU WOULD BUY SEATS SAYS MR BIRINYI BUT TODAY BROKERAGE FIRMS ARE SAYING WE'LL MAKE A LOT OF MONEY BUT WE DON'T WANT TO MAKE THE CAPITAL COMMITMENT OF BUYING A SEAT 9303240064 930324 BUSINESS BRIEF 3COM CORP COMPUTER CONCERN SWUNG TO PROFIT DURING 4TH PERIOD IN THE YEAREARLIER QUARTER THE SANTA CLARA CALIF COMPANY WHICH MAKES COMPUTER NETWORKING EQUIPMENT HAD A NET LOSS OF 44 MILLION OR 16 CENTS A SHARE THE MOST RECENT QUARTER INCLUDED A 16 MILLION CHARGE RELATED TO AN ACQUISITION THE RESULTS WERE SLIGHTLY BETTER THAN MOST ANALYSTS' ESTIMATES LIKE MANY NETWORKING CONCERNS 3COM IS BENEFITING FROM THE INCREASED POWER AND AFFORDABILITY OF PERSONAL COMPUTERS WHICH MANY USERS NOW TIE TOGETHER WITH NETWORKING PRODUCTS TO CREATE SYSTEMS WITH SPEED AND SOPHISTICATION FORMERLY ONLY AVAILABLE IN MUCH LARGER AND MORE EXPENSIVE COMPUTERS REVENUE FOR THE QUARTER SURGED 52 TO 1614 MILLION FROM 1063 MILLION 9303240063 930324 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 BALTIMORE GAS & ELECTRIC CO 125 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE MARCH 15 2008 WON BY DEALERS LED BY MORGAN STANLEY & CO THE BONDS WILL BE REOFFERED AS 6 5/8 AT 99537 TO YIELD 6674 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 075 POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICES INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP GULF STATES UTILITIES CO 50 MILLION OF 10YEAR 675 FIRST MORTGAGE BONDS PRICED AT 9956 TO YIELD 681 THE OFFERING IS MANAGED BY FIRST BOSTON CORP AND JP MORGAN SECURITIES INC HEALTHTRUST INC 300 MILLION OF SENIOR SUBORDINATED NOTES DUE MARCH 15 2005 PRICED AT PAR TO YIELD 8875 THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP MELLON FINANCIAL CO 200 MILLION OF NOTES DUE APRIL 1 1996 PRICED TO FLOAT QUARTERLY AT A SPREAD OF 030 POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE THE NOTES WHICH PAY INTEREST QUARTERLY ARE NONCALLABLE FOR ONE YEAR RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MELLON FINANCIAL IS A UNIT OF MELLON BANK CORP PAMIDA INC 140 MILLION OF SENIOR SUBORDINATED NOTES DUE MARCH 15 2003 PRICED AT PAR TO YIELD 1175 THE ISSUE NONCALLABLE FOR FIVE YEARS IS RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH CITICORP SECURITIES MARKETS INC PAMIDA INC IS A UNIT OF PAMIDA HOLDINGS CORP POTOMAC EDISON CO 75 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 1 2000 WON BY A GROUP OF DEALERS LED BY GOLDMAN SACHS & CO THE NONCALLABLE ISSUE WILL BE REOFFERED AS 5 7/8 AT 99409 TO YIELD 598 THE BONDS WERE PRICED AT A SPREAD OF 040 POINT ABOVE THE TREASURY SEVENYEAR NOTE THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P POTOMAC EDISON IS A UNIT OF ALLEGHENY POWER SYSTEM SINGER CO 150 MILLION OF NOTES DUE APRIL 1 2003 WAS PRICED AS 7 AT 9955 TO YIELD 7064 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 115 POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CALIFORNIA STATE PUBLIC WORKS BOARD 810 MILLION OF BONDS PRICED BY GROUPS LED BY MERRILL LYNCH & CO AND GOLDMAN SACHS & CO THE MERRILL LYNCH GROUP PRICED 550 MILLION 1993 SERIES A LEASE REVENUE REFUNDING BONDS WHICH ARE FOR VARIOUS STATE PRISONS YIELDS FOR THOSE BONDS RANGE FROM 265 IN 1993 TO 570 IN 2019 BONDS DUE IN 1999 2000 2002 2003 200508 2013 AND 2019 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P ALL OTHER BONDS HAVE BEEN RATED CONDITIONAL SINGLEA1 BY MOODY'S AND PROVISIONAL SINGLEAMINUS BY S&P THE GOLDMAN SACHS GROUP PRICED 260 MILLION OF 1993 SERIES B LEASE REVENUE BONDS THOSE BONDS WHICH ARE ALSO FOR STATE PRISONS WERE PRICED TO YIELD FROM 345 IN 1995 TO 578 IN 2019 THEY ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P COBB COUNTY GA 727 MILLION OF WATER AND SEWER REVENUE REFUNDING BONDS APPARENTLY WON BY A KIDDER PEABODY & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 521 YIELDS RANGE FROM 270 IN 1994 TO 550 IN 2008 MOODY'S HAS RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING LOS ANGELES DEPARTMENT OF WATER AND POWER 5795 MILLION OF 1993 ELECTRIC PLANT REVENUE REFUNDING BONDS APPARENTLY WON BY A PRUDENTIAL SECURITIES INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5824 YIELDS RANGE FROM 480 IN 2000 TO 590 IN 2030 MOODY'S AND S&P HAVE RATED THE ISSUE DOUBLEA MASSACHUSETTS 240 MILLION OF 1993 SERIES A GENERAL OBLIGATION NOTES PRICED BY A GOLDMAN SACHS & CO GROUP THE NOTES ARE PRICED AS 300 AT 10041 TO YIELD 235 ON NOV 18 1993 MOODY'S HAS RATED THE ISSUE MIG2 S&P HAS ASSIGNED AN SP1 RATING AND FITCH INVESTORS SERVICE INC HAS ASSIGNED AN F1 RATING PUERTO RICO TELEPHONE AUTHORITY 7395 MILLION OF REVENUE REFUNDING AND NEWMONEY REVENUE BONDS PRICED BY A LEHMAN BROTHERS GROUP THE OFFERING INCLUDES FIXEDRATE BONDS AND DERIVATIVE SECURITIES THE FIXEDRATE BONDS INCLUDE 2956 MILLION OF SERIES M REVENUE REFUNDING BONDS PRICED TO YIELD FROM 240 IN 1994 TO 555 IN 2008 MOST OF THOSE BONDS ARE RATED SINGLEA BY MOODY'S AND SINGLEAPLUS BY S&P BONDS DUE IN 1999 AND 2000 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE OTHER FIXEDRATE BONDS ARE THE 474 MILLION OF SERIES N NEWMONEY BONDS WHICH YIELDS FROM 240 IN 1994 TO 575 IN 2022 MOODY'S HAS RATED THESE BONDS SINGLEA AND S&P HAS ASSIGNED A SINGLEAPLUS RATING THE DERIVATIVES INCLUDE SELECT AUCTION VARIABLE RATE SECURITIES RESIDUAL INTEREST BONDS BOND PAYMENT OBLIGATIONS AND INVERSE FLOATING RATE SECURITIES ALL OF THE DERIVATIVES ARE SERIES M REFUNDING SECURITIES SAVRS AND RIBS ARE FORMED WHEN TERM BONDS ARE DIVIDED INTO TWO EQUAL PORTIONS FOR THIS ISSUE 504 MILLION OF SAVRS AND 504 OF MILLION RIBS ARE DUE IN 2007 THERE ARE ALSO 65 MILLION OF SAVRS AND 65 MILLION OF RIBS ARE DUE IN 2015 YIELDS FOR THE SAVRS WILL BE RESET AT PERIODIC AUCTIONS YIELDS FOR THE RIBS WILL CHANGE AFTER EACH AUCTIONINVERSELY TO THE MOVEMENT OF THE SAVRS RATES RIBS DUE IN 2007 HAVE A COUPON OF 773 AND A CURRENT BOND EQUIVALENT YIELD OF 786 RIBS DUE IN 2015 HAVE A COUPON OF 813 AND CURRENT BOND EQUIVALENT YIELD OF 826 BOTH THE SAVRS AND RIBS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE 455 MILLION OF BOND PAYMENT OBLIGATIONS HAVE A FINAL MATURITY OF JAN 1 2005 THEY ARE RATED SINGLEA BY MOODY'S AND SINGLEAPLUS BY S&P THE 901 MILLION OF INVERSE FLOATINGRATE SECURITIES HAVE FINAL MATURITIES JAN 1 2003 AND JAN 1 2004 THOSE DERIVATIVES ARE INSURED BY AMBAC AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P APACHE CORP 53 MILLION COMMON SHARES PRICED AT 2375 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FIRST WESTERN CORP 1750000 COMMON SHARES PRICED AT 1550 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC SOUTHERN CALIFORNIA EDISON CO 75 MILLION OF PREFERRED STOCK WITH A FINAL MATURITY OF 2008 WAS WON BY DEALERS LED BY LEHMAN BROTHERS WITH A BID SETTING THE NET INTEREST COST AT 60996 THE 750000 SHARES OF 100ASHARE PREFERRED WERE PRICED WITH A DIVIDEND YIELD OF 605 THE SHARES HAVE A 1425 YEAR AVERAGE LIFE THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEA BY S&P SOUTHERN CALIFORNIA EDISON IS A UNIT OF SCECORP RESOLUTION TRUST CORP 7236 MILLION OF COMMERCIAL AND MULTIFAMILY MORTGAGEBACKED SECURITIES PRICED IN 12 PARTS THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO THE OFFERING CONSISTED OF EIGHT CLASSES RATED TRIPLEA BY S&P AND DUFF & PHELPS CREDIT RATING CO AND FOUR SUBORDINATE CLASSES RATED DOUBLEA THROUGH DOUBLEB OF THE TRIPLEA CERTIFICATES THREE FIXEDRATE CLASSES AND ONE FLOATINGRATE CLASS WERE BACKED BY COMMERCIAL MORTGAGE LOANS AN ADDITIONAL THREE FIXEDRATE CLASSES AND ONE FLOATING RATE CLASS WERE BACKED BY MULTIFAMILY MORTGAGE LOANS THE TRIPLEA CLASSES WERE SUPPORTED BY THE FOUR SUBORDINATE CLASSES AND A RESERVE FUND TOTALING ABOUT 23 OF THE DEAL FURTHER DETAILS WERE NOT AVAILABLE HOUSEHOLD FINANCE CORP 399 MILLION OF FLOATINGRATE ASSETBACKED CERTIFICATES PRICED WITH AN INITIAL COUPON OF 36575 AT PAR TO FLOAT 047 POINT ABOVE THE ONEMONTH LIBOR THE CERTIFICATES HAVE A 449YEAR AVERAGE LIFE WITH AN EXPECTED FINAL MATURITY OF FEB 9 2001 AND A LEGAL FINAL MATURITY OF JUNE 9 2022 RATED TRIPLEA BY MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP THE CERTIFICATES RECEIVED CREDIT SUPPORT FROM A 100 SURETY BOND PROVIDED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP HOUSEHOLD FINANCE IS A UNIT OF HOUSEHOLD INTERNATIONAL INC ALLIANZ FINANCE AMSTERDAM BV GERMAN PARENT 950 MILLION MARKS OF 6 1/2 EUROBONDS DUE APRIL 15 1998 WITH EQUITY WARRANTS ATTACHED AT ISSUE PRICE 124 VIA DRESDNER BANK AG EACH 5000MARK BOND HAS 28 WARRANTS ATTACHED EXERCISABLE FROM APRIL 19 1993 TO FEB 18 1998 TO PURCHASE SHARES IN ALLIANZ AG HOLDING COMPANY HAS OPTION TO EXTEND WARRANT EXERCISE PERIOD BY ONE YEAR IN 1998 AND AGAIN IN 1999 IF MARKET PRICE OF SHARES IS BELOW EXERCISE PRICE TEN WARRANTS CAN BE EXERCISED TO BUY ONE REGISTERED SHARE AT STRIKE PRICE OF 2200 MARKS A PREMIUM OF 185 GUARANTOR ALLIANZ AG HOLDING FEES 2 3/4 POINTS KINGDOM OF NORWAY SOVEREIGN 500 MILLION CANADIAN DOLLARS OF 7 1/4 EUROBONDS DUE OCT 22 1998 AT ISSUE PRICE 100845 VIA IBJ INTERNATIONAL AND PARIBAS CAPITAL MARKETS REOFFERED AT 9922 TO YIELD 741 ANNUALLY SPREAD 052 POINT ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE FEES 1 7/8 EUROFIMA SUPRANATIONAL 125 MILLION CANADIAN DOLLARS OF 7 1/8 EUROBONDS DUE APRIL 15 1998 AT ISSUE PRICE 101125 VIA GOLDMAN SACHS INTERNATIONAL REOFFERED AT 9950 TO YIELD 7247 ANNUALLY SPREAD 042 POINT ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE FEES 1 7/8 CHEMICAL BANKING CORP US 100 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE APRIL 22 2003 AT ISSUE AND FIXED REOFFER PRICE 99875 VIA MORGAN STANLEY INTERNATIONAL INTEREST FLOATS AT 1/8 POINT BELOW SIXMONTH LIBOR FOR US DOLLARS SUBJECT TO MINIMUM COUPON 5 1/2 AND MAXIMUM 9 1/4 FEES 1/2 POINT KLABIN FABRICADORA DE PAPEL & CELULOSE SA BRAZIL PARENT 60 MILLION OF 11 EUROBONDS DUE APRIL 15 1998 AT ISSUE AND FIXED REOFFER PRICE 9940 VIA JP MORGAN SECURITIES LTD BONDS YIELD 1116 ON A SEMIANNUAL BASIS TO MATURITY SPREAD SIX POINTS ABOVE COMPARABLE US TREASURY NOTE BONDS FEATURE PUT OPTION EXERCISABLE FROM APRIL 15 1996 AT PRICE 96766 TO YIELD 1029 SEMIANNUALLY TO PUT DATE GUARANTOR INDUSTRIAS KLABIN DE PAPEL & CELULOSE SA FEES 1 1/8 INTEREST PAYABLE SEMIANNUALLY BANCO MULTIPLIC SA BRAZIL UK PARENT 50 MILLION OF 10 EUROBONDS DUE OCT 2 1995 AT ISSUE AND FIXED REOFFER PRICE 9767 VIA SOCIMER INTERNATIONAL BANK LTD BONDS YIELD 1109 SEMIANNUALLY SPREAD SEVEN POINTS OVER COMPARABLE US TREASURY FEES 1 3/8 INTEREST PAYABLE SEMIANNUALLY CYDSA SA MEXICO 50 MILLION OF 9 1/4 EUROBONDS DUE APRIL 8 1998 AT ISSUE PRICE 9948 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 964 ANNUALLY SPREAD 450 POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1 INTEREST PAYABLE SEMIANNUALLY EUROPEAN INVESTMENT BANK SUPRANATIONAL 15 BILLION SPANISH PESETAS OF 11 1/4 EUROBONDS DUE APRIL 20 2003 AT ISSUE PRICE 10164 VIA BANCO ESPAGNOL DE CREDITO BONDS YIELD 1129 AFTER DEDUCTING THE FULL FEES OF 1 7/8 9303240062 930324 BUSINESS BRIEF PHILLIPSVAN HEUSEN CORP FOURTHQUARTER NET ROSE 14 ON 17 SALES INCREASE PHILLIPSVAN HEUSEN CORP REPORTED A 14 INCREASE IN FOURTHQUARTER NET INCOME BUT CAUTIONED THAT BAD WEATHER COULD HURT FIRSTQUARTER RESULTS HOWEVER LAWRENCE S PHILLIPS CHAIRMAN SAID THE COMPANY SHOULD MAKE UP FOR ANY FIRSTQUARTER DECLINE OVER THE COURSE OF THE YEAR DUE TO RECENT STRENGTHENED ORDERS FOR FOOTWEAR AND NEW APPAREL LINES FOURTHQUARTER NET ROSE TO 97 MILLION OR 36 CENTS A SHARE FROM 85 MILLION OR 32 CENTS A SHARE THE YEAR BEFORE SALES ROSE 17 TO 2725 MILLION FROM 2321 MILLION RESULTS INCLUDED A 47 MILLION PRETAX INVENTORY CREDIT COMPARED WITH A NEGLIGIBLE CREDIT IN THE PRIOR YEAR THE QUARTER ALSO INCLUDED A 17 MILLION RELOCATION CHARGE AND A 2 MILLION CHARGE FOR RESERVES IN THE APPAREL GROUP THE COMPANY ALSO REPURCHASED PREFERRED SHARES IN MAY 1992 NET FOR 1992 WAS 379 MILLION OR 142 A SHARE COMPARED WITH 311 MILLION OR 115 A SHARE IN 1991 SALES ROSE TO 104 BILLION FROM 904 MILLION 9303240061 930324 GERSTNER'S DEPARTURE WOULD LEAVE RJR SEARCHING FOR NEW CHIEF AT CRITICAL TIME BY GEORGE ANDERS AND EBEN SHAPIRO STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LOUIS V GERSTNER JR'S APPARENT DEPARTURE LEAVES RJR NABISCO HOLDINGS INC SEARCHING FOR A NEW CHIEF EXECUTIVE OFFICER AT A CRITICAL TIME THE HIGHLY REGARDED MR GERSTNER IS EXPECTED TO LEAVE THE TOBACCO AND FOOD CONCERN SHORTLY TO TAKE UP THE TOP JOB AT INTERNATIONAL BUSINESS MACHINES CORP EVEN THOUGH HIS INTEREST IN THE IBM JOB HAS BEEN RUMORED FOR WEEKS HIS DEPARTURE STILL IS LIKELY TO STARTLE AND UPSET RJR STOCKHOLDERS ALTHOUGH RJR HAS SEVERAL STRONG INTERNAL CANDIDATES TO SUCCEED MR GERSTNER HIS DECISION TO LEAVE WOULD COME AT AN AWKWARD TIME RJR'S ANNUAL MEETING OF SHAREHOLDERS IS SET FOR APRIL 2 AND THE COMPANY IS IN THE MIDST OF THE SECURITIES AND EXCHANGE COMMISSION'S REVIEW OF A COMPLEX PROPOSAL TO CREATE A SEPARATE CLASS OF STOCK FOR THE NABISCO FOOD COMPANY RJR HOPES THAT THE NEW NABISCO SHARES WILL ATTRACT A HIGH ENOUGH VALUATION TO OFFSET THE DRAG OF ITS TOBACCO BUSINESS ON ITS STOCKMARKET PERFORMANCE THE COMPANY AIMS TO BEGIN A ROAD SHOW FOR THE NEW STOCK LATE NEXT MONTH OR IN EARLY MAY WITH A GOAL OF ISSUING THE STOCK LATER THIS SPRING MR GERSTNER WOULD BE GETTING OUT AT A TIME WHEN RJR SHAREHOLDERS ARE GROWING RESTIVE THE COMPANY IS CONTENDING WITH A SHARP DROP IN SALES FOR ITS WINSTON AND SALEM CIGARETTE BRANDS RISING COMPETITION FROM LOWMARGIN DISCOUNT CIGARETTES AND THE THREAT OF A SHARP INCREASE IN FEDERAL TOBACCO TAXES EVEN ITS USUALLY EBULLIENT FOOD BUSINESS HAS SEEN ITS GROWTH SLUMP RJR'S STOCK CLOSED YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AT 8125 UP 25 CENTS THAT PRICE IS DOWN FROM ITS 52WEEK HIGH OF 10375 TOLD ABOUT MR GERSTNER'S APPARENT PLANS LAST NIGHT A MAJOR RJR SHAREHOLDER EXPRESSED CONCERN THE NOTION WAS THAT THIS WAS A FIVEYEAR PLAN AND WE ARE IN YEAR FOUR SAID LARRY WEISSMAN A PORTFOLIO MANAGER FOR COLLEGE RETIREMENT EQUITIES FUND A PENSION FUND THAT OWNS ABOUT 50 MILLION SHARES OF RJR STOCK CREF IS THE SECONDLARGEST SHAREHOLDER IN RJR AFTER VARIOUS INVESTMENT PARTNERSHIPS CONTROLLED BY KOHLBERG KRAVIS ROBERTS & CO WHICH TOGETHER OWN ABOUT 50 OF THE TOBACCO AND FOOD COMPANY ASKED HOW MR GERSTNER'S DEPARTURE WOULD AFFECT THE NABISCO STOCK DEAL MR WEISSMAN SAID IT MAKES THINGS A LITTLE LESS CLEAR HE SAID THE QUESTION OF SUCCESSION IS THE KEY ISSUE IT ISN'T CLEAR UNTIL THEY REPLACE HIM WHETHER THIS IS A PROBLEM OR NOT SIMILAR CONCERNS WERE VOICED BY BILL MCKNIGHT A FORMER EXECUTIVE VICE PRESIDENT OF THE NABISCO FOODS DIVISION WHO LEFT AT THE BEGINNING OF THE YEAR I STILL HAVE A LOT OF MY NET WORTH TIED UP IN RJR NABISCO MR MCKNIGHT SAID I'D HATE TO SEE HIM LEAVE TO REPLACE MR GERSTNER RJR NABISCO'S BOARD IS LIKELY TO LOOK INSIDE RATHER THAN GO OUTSIDE ITS RANKS FOR THE SECOND TIME IN FOUR YEARS THE ACTUAL CHOICE OF SUCCESSOR IS LIKELY TO BE MADE PRIMARILY BY THE PARTNERS OF KKR THE LEVERAGED BUYOUT FIRM THAT ACQUIRED RJR FOR 264 BILLION IN EARLY 1989 EIGHT OF RJR'S 15 DIRECTORS ARE KKR EXECUTIVES AS RECENTLY AS TWO WEEKS AGO KKR PARTNERS HAD TRIED TO DISSUADE MR GERSTNER FROM LEAVING ARGUING THAT HE HADN'T FINISHED HIS TASK OF REBUILDING THE COMPANY BUT BY LATE LAST WEEK THERE WERE SIGNS THAT KKR HAD COME TO TERMS WITH THE PROSPECT THAT MR GERSTNER MIGHT GO AND HAD BEGUN THINKING ABOUT HIS SUCCESSOR THROUGH A SPOKESWOMAN KKR PARTNER HENRY KRAVIS SAID WHETHER LOU STAYS AT RJR OR TAKES A TRULY UNIQUE OPPORTUNITY LIKE THE IBM POSITION HE IS HELD IN HIGH REGARD BY EVERYONE AT KKR HE ADDED SHOULD LOU DECIDE TO LEAVE HE LEAVES BEHIND TERRIFIC MANAGEMENT TEAMS AT BOTH THE CORPORATE AND THE OPERATING LEVELS MR KRAVIS ALSO SAID MR GERSTNER WOULD LEAVE RJR AN INVESTMENTGRADE COMPANY IN A STRONG FINANCIAL CONDITION WITHIN RJR'S RANKS SEVERAL SENIOR EXECUTIVES ARE POTENTIAL CONTENDERS FOR THE TOP JOB JOHN GREENIAUS HEAD OF THE NABISCO DIVISION IS HIGHLY REGARDED IN THE FOOD INDUSTRY AND IS BELIEVED TO BE CLOSE TO MR KRAVIS KARL VON DER HEYDEN RJR'S CHIEF FINANCIAL OFFICER HAS WON PRAISE ON WALL STREET FOR SHRINKING RJR'S DEBT CONSIDERABLY OVER THE PAST FOUR YEARS STILL IT IS RARE FOR A FINANCE SPECIALIST TO LAND THE TOP JOB AT A MAJOR CONSUMER PRODUCTS COMPANY A THIRD CONTENDER WITHIN RJR NABISCO WOULD BE JAMES JOHNSTON HEAD OF THE COMPANY'S DOMESTIC TOBACCO BUSINESS EXECUTIVE RECRUITERS SAID THERE WEREN'T ANY OBVIOUS REPLACEMENTS OUTSIDE THE COMPANY SEVERAL RECRUITERS MENTIONED DAVID W JOHNSON CHIEF EXECUTIVE OF CAMPBELL SOUP CO AND HERBERT BAUM ALSO OF CAMPBELL PHILIP A MARINEAU THE NO 2 EXECUTIVE AT QUAKER OATS CO IS ALSO SEEN AS A POSSIBILITY IT IS UNCLEAR THOUGH WHETHER ANY OF THOSE CANDIDATES WOULD WANT TO TAKE ON THE MANY CHALLENGES ASSOCIATED WITH RUNNING A TOBACCO COMPANY IF RJR DOES ATTEMPT TO MARKET ITS NEW NABISCO STOCK WITHOUT HAVING SETTLED ON A SUCCESSOR INVESTORS WOULD BE ABLE TO DRAW SOME COMFORT FROM THE COMPANY'S EXPERIENCE IN EARLY 1989 AT THAT TIME RJR NABISCO RAISED BILLIONS OF DOLLARS IN THE CAPITAL MARKETS EVEN THOUGH MR GERSTNER HADN'T YET COME ON BOARD AND THE COMPANY WAS WITHOUT A PERMANENT CHIEF EXECUTIVE 9303240060 930324 BUSINESS BRIEF ORACLE SYSTEMS CORP CONCERN'S PROFIT SURGED 74 IN FISCAL THIRD QUARTER ORACLE SYSTEMS CORP SAID PROFIT FOR THE THIRD QUARTER ENDED FEB 28 SURGED 74 DESPITE A 24 MILLION CHARGE TO SETTLE CERTAIN SHAREHOLDER LAWSUITS NET INCOME ROSE TO 292 MILLION OR 20 CENTS A SHARE FROM 168 MILLION OR 12 CENTS A SHARE A YEAR EARLIER THE REDWOOD CITY CALIF DATABASE SOFTWARE MAKER CITED BOOMING DEMAND FOR ITS UNIX COMPUTER OPERATING SYSTEM AMONG OTHER THINGS REVENUE ROSE 28 TO 3701 MILLION FROM 2896 MILLION A YEAR EARLIER THE STRONG QUARTER CONTINUES A TURNAROUND AT ORACLE THE COMPANY WAS A HIGHFLYER IN THE LATE 1980S BUT FALTERED IN 1990 AND 1991 IT HAS BEEN GRADUALLY REBOUNDING SINCE THEN AND SEVERAL ANALYSTS RECENTLY HAVE SAID THEY BELIEVE ORACLE HAS TAMED COST AND INTERNAL CONTROL PROBLEMS THAT ONCE PLAGUED IT AND NOW IS POSITIONED FOR STRONG GROWTH THE RESULTS WERE RELEASED AFTER THE MARKET CLOSED YESTERDAY IN OVERTHECOUNTER TRADING ORACLE SHARES WERE UNCHANGED AT 34875 IN THE FALL THE STOCK WAS TRADING AS LOW AS 16 A SHARE 9303240059 930324 LETTERS TO THE EDITOR IMPUGNED MY MOTIVES WITH A CHEAP SHOT IT IS PROBABLY POINTLESS TO ARGUE WITH YOU ABOUT MY ETHICAL STANDING REVIEW & OUTLOOK MARCH 12 BUT IT IS STUNNING TO ME THAT YOU WOULD SO MISREPRESENT THE FACTS YOU CITE AS THE BASIS FOR YOUR CONCLUSION NEVER DID I MAKE REFERENCE TO THE GENDER OR RACE OF THE FEDERAL RESERVE MEMBERS WHO TESTIFIED BEFORE THE SENATE BANKING COMMITTEE AS THE TRANSCRIPT WILL SHOW MY COMMENTS WERE TO THE POINT THAT I WANTED TO HEAR WHAT THEY HAD TO SAY AND NOT BE SUBJECTED TO PARTISAN POLITICAL SPEECHES FROM COMMITTEE MEMBERS SEN DONALD RIEGLE D MICH HAS DONE A GREAT JOB IN AFFORDING NEW MEMBERS WITH AN OPPORTUNITY TO HEAR FROM THE BANKERS AND REGULATORS WHO ARE CONFRONTED WITH THE DAYTODAY REALITIES OF THE SYSTEM TO CALL IT A STAGED EVENT DISPARAGES EFFORTS TO DO THE RIGHT THING YOU ALSO REFERRED TO SEVERAL EVENTS THAT WERE PERSONALLY PAINFUL TO ME AND THAT THREATENED TO SULLY A REPUTATION FOR REFORM THAT I HAVE BUILT IN MY 20 YEARS IN PUBLIC SERVICE HOWEVER YOU SHOULD TELL THE WHOLE STORY AND NOT JUST PART OF IT IN YOUR IMPLIED CONDEMNATION OF MY RECORD THE STATE OF ILLINOIS HAS CLOSED THE CASE CONCERNING MY MOTHER AND IN SO DOING EXONERATED BOTH MY MOTHER AND ME OF ANY WRONGDOING THE DEPARTMENT DID NOT BELIEVE THAT ANY REFERRAL OF THE MATTER FOR BRAUN WAS WARRANTED OR APPROPRIATE THE PEOPLE WHO WERE HIRED AND THEN FIRED AT THE RECORDER'S OFFICE IN CHICAGO HAVE ALL BEEN REINSTATED PRECISELY BECAUSE THEY WERE NOT CAMPAIGN WORKERS HIRED FOR POLITICAL REASONS THE SEXUAL HARASSMENT HOAX HAS SHOWN ITSELF TO BE JUST THAT STARTED WITH AN ANONYMOUS LETTER NO PERSON HAS EVER COME FORWARD TO MAKE WHAT YOU CALLED AN ALLEGATION AN EXTENSIVE INVESTIGATION BY OUTSIDE LEGAL COUNSEL CONCLUDED THAT THERE WAS NO BASIS FOR THE ANONYMOUS CHARGE I DO NOT PERSONALLY KNOW REP HAROLD FORD D TENN NOR DO I KNOW STUART GERSON FORMERLY THE ACTING ATTORNEY GENERAL AND REPUBLICAN HOLDOVER WHO AGREED WITH THE CONGRESSIONAL BLACK CAUCUS THAT BUSING A JURY INTO MEMPHIS WAS EXTRAORDINARY AND INAPPROPRIATE AS A MEMBER OF THE JUDICIARY COMMITTEE I CAME TO THE DEFENSE OF THE CAUCUS'S ACTION BECAUSE I BELIEVE IT WAS THE RIGHT THING TO DO AS A RESPECTED PUBLICATION FOR YOU TO IMPUGN MY MOTIVES AND CAPACITY TO DO SO IS A CHEAP SHOT 9303240058 930324 BUSINESS BRIEF BELLSOUTH CORP AGREEMENT REACHED TO BUY INTEREST IN FRENCH COMPANY BELLSOUTH CORP SAID IT REACHED AN AGREEMENT TO ACQUIRE A 125 STAKE IN FRANCE TELECOM MOBILES DATA A NEW UNIT OF FRANCE TELECOM THAT PLANS TO BUILD A MOBILE DATA NETWORK IN FRANCE TERMS WERE NOT DISCLOSED BELLSOUTH SAID THE COMPANIES EXPECT TO SPEND MORE THAN 80 MILLION ON THE NETWORK WHICH IS SCHEDULED TO BEGIN SERVICE IN PARIS THIS YEAR AND IN OTHER MAJOR FRENCH CITIES NEXT YEAR THE COMPANIES EXPECT TO COMPLETE CONSTRUCTION IN ALL CITIES WITH OVER 100000 RESIDENTS BY 1997 THE NETWORK WILL USE LM ERICSSONS MOBITEX TECHNOLOGY THE SAME TECHNOLOGY USED IN MOBILE DATA NETWORKS IN THE US BRITAIN CANADA SWEDEN FINLAND AND NORWAY BELLSOUTH A REGIONAL BELL TELEPHONE COMPANY BASED IN ATLANTA ALSO SAID IT HAS BEGUN BUILDING A MOBILE DATA NETWORK IN THE NETHERLANDS AND EXPECTS TO BEGIN SERVICE IN SOME DUTCH MARKETS THIS YEAR AND COMPLETE CONSTRUCTION IN 1994 9303240057 930324 BUSINESS BRIEF METALL MINING CORP OFFER FOR REMAINING 496 OF MINNOVA IS SWEETENED METALL MINING CORP SAID IT SWEETENED ITS OFFER TO ACQUIRE THE 496 OF MINNOVA INC IT DOESN'T ALREADY OWN IN EXCHANGE FOR EACH MINNOVA SHARE METALL SAID IT WILL OFFER FOUR CANADIAN DOLLARS US321 ONE METALL SHARE AND ONEHALF OF A WARRANT TO PURCHASE A METALL SHARE ALTERNATIVELY METALL SAID IT WILL OFFER 143 METALL SHARES FOR EACH MINNOVA SHARE GIVING THE TRANSACTION AN INDICATED VALUE OF C1226 MILLION US983 MILLION THE PREVIOUS OFFER CONSISTED OF ONE METALL SHARE AND C4 IN CASH FOR EACH MINNOVA SHARE MINNOVA SHAREHOLDERS ARE SCHEDULED TO VOTE ON THE OFFER IN MAY BOTH COMPANIES ARE MINING CONCERNS BASED IN TORONTO 9303240056 930324 SIX IN GM PURCHASING STAFF RESIGN TO JOIN LOPEZ AT VW DETROIT GENERAL MOTORS CORP SAID SIX MEMBERS OF ITS PURCHASING STAFF INCLUDING THREE TOP EXECUTIVES RESIGNED MONDAY TO JOIN GM'S FORMER PURCHASING CHIEF AT VOLKSWAGEN AG THE SIX INCLUDE FRANCISCO GARCIA JOSE GUTIERREZ AND HUGO VAN DER AUWERA THREE OF THE 21 EXECUTIVE DIRECTORS IN GM'S WORLDWIDE PURCHASING STAFF THEY HAD WORKED FOR THE FORMER PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA IN EUROPE WHERE HE HEADED GM OF EUROPE'S PURCHASING ACTIVITIES UNTIL MAY 1992 AT THAT TIME MR LOPEZ MOVED TO DETOIT TO TAKE OVER GM'S WORLDWIDE PURCHASING ACTIVITIES AND THE THREE JOINED HIM THE OTHER THREE PEOPLE TO LEAVE GM WERE BUYERS TWO OF WHOM WORKED IN EUROPE EARLIER THIS MONTH MR LOPEZ RESIGNED FROM THE US AUTO MAKER AND JOINED VW'S BOARD HE WAS GIVEN CONTROL OF PRODUCTION AND PURCHASING AT THE GERMAN AUTO MAKER AS PART OF AN ATTEMPT TO TURN VW INTO A MUCH LEANER OPERATION A GM SPOKESWOMAN SAID THE RESIGNATIONS WON'T HAVE A SIGNIFICANT IMPACT ON GM'S PURCHASING STAFF 9303240055 930324 BUSINESS BRIEF HEALTHTRUST INC PURCHASE OF TEXAS HOSPITAL FOR 85 MILLION IS PLANNED HEALTHTRUST INC WHICH OPERATES 83 HOSPITALS SIGNED A LETTER OF INTENT TO BUY A TEXAS HOSPITAL FOR 85 MILLION AND AN UNDISCLOSED AMOUNT FOR WORKING CAPITAL THE ACQUISITION OF THE 182BED MEDICAL CENTER HOSPITAL IN CONROE TEXAS ELIMINATES COMPETITION FOR THE 135BED HOSPITAL HEALTHTRUST ALREADY OPERATES IN THE CITY THE NASHVILLE TENN COMPANY SAID IT PLANS TO MERGE THE TWO OPERATIONS HEALTHTRUST ALSO PLANS TO BUY A MEDICAL OFFICE BUILDING AND 40 TO 50 ACRES OF LAND OWNED BY THE HOSPITAL THE TRANSACTION IS EXPECTED TO CLOSE IN MAY THE PURCHASE WILL HELP THE COMPANY COMPETE IN THE HOUSTON AREA ONE OF THE COUNTRY'S MOST COMPETITIVE MARKETS FOR HOSPITALS SAID MARGO VIGNOLA AN ANALYST WITH SALOMON BROS THEY'LL HAVE A GOODSIZED JUGGERNAUT WHICH WILL MAKE THEM BIGGER AND MORE COMPETITIVE SHE SAID 9303240054 930324 BUSINESS BRIEF BIOCHEM PHARMA INC TRIALS SCHEDULED FOR 3TC TO TEST AIDSVIRUS EFFECT BIOCHEM PHARMA INC SAID CLINICAL TRIALS WILL BEGIN NEXT MONTH IN THE US AND SEVEN OTHER COUNTRIES TO TEST THE EFFICACY OF 3TC IN PATIENTS INFECTED WITH HUMAN IMMUNODEFICIENCY VIRUS OR HIV LIKE OTHER ANTIHIV DRUGS 3TC IS A NUCLEOSIDE ANALOGUE WHICH INTERFERES WITH THE REPLICATION OF THE VIRUS THAT CAUSES AIDS A SPOKESWOMAN FOR THE CANADIAN UNIT OF BRITAIN'S GLAXO HOLDINGS PLC WHICH IS DEVELOPING THE DRUG UNDER AN AGREEMENT WITH BIOCHEM DESCRIBED THE TESTS AS EARLY PHASE TWOTHREE TRIALS SHE SAID GLAXO HOPES TO COMPLETE THE TESTS BY THE END OF THIS YEAR AND THEN BROADEN THE TRIALS BIOCHEM A MONTREALBASED BIOTECHNOLOGY COMPANY DISCOVERED 3TC AND SIGNED AN AGREEMENT WITH GLAXO COVERING COMMERCIALIZATION OF THE DRUG 9303240053 930324 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL IMAGE IS ALL IN NEW TECHNOLOGIES FOR PROCESSING PAPER TAX RETURNS ELECTRONIC FILING OF COMPUTERREADY RETURNS MAY BE THE WAVE OF THE FUTURE BUT PAPER FORMS HAVE A LONG LIFE AHEAD NOW MARYLAND HAS BEGUN USING AN IBM SYSTEM THAT SCANS FORMS CREATES VIDEOLIKE IMAGES AND CONVERTS DATA INTO COMPUTER CODE FOR PROCESSING THE SYSTEM REPLACES MANUAL DATA ENTRY BY KEYBOARD AND IS DESIGNED TO BE FASTER AND FAR MORE ACCURATE THE IRS JUST AWARDED A CONTRACT TO GRUMMAN FOR A SYSTEM TO BEGIN PILOT OPERATION IN OCTOBER MARYLAND COMPTROLLER GOLDSTEIN SAYS THE STATE HOPES THIS YEAR TO SAVE 250000 IN DATAENTRY COSTS BY IMAGING 450000 OF 22 MILLION 1992 STATE RETURNS THE IMAGED FORMS HAVE TYPED ENTRIES AND COME MAINLY FROM RETURN PREPARERS BUT THE STATE PLANS TO PROCESS HANDPRINTED FORMS IN 1994 THE IRS'S CINCINNATI CENTER IS TO GET A SYSTEM DESIGNED TO PROCESS 175000 RETURNS A DAY AND HANDLE HANDPRINTED ENTRIES WITH 995 ACCURACY SAYS IRS MANAGER COLETA BRUECK THE IRS SYSTEM WILL PROCESS ONEPAGE 1040EZS AND COMPUTERGENERATED 1040PCS IT ALSO WILL BE USED YEARROUND FOR PAYROLLTAX DEPOSITS AND OTHER FORMS UK SUBSIDIARIES MAY WANT TO ACCELERATE DIVIDENDS TO THEIR US PARENTS THE DEADLINE IS APRIL 5 ON APRIL 6 A BUDGET MEASURE BY THE BRITISH GOVERNMENT RAISES TO 284 FROM 257 THE EFFECTIVE TAX RATE ON FULL PAYOUTS OF PROFITS AS DIVIDENDS TO US PARENT COMPANIES SAYS JONATHAN FOX OF ERNST & YOUNG CPAS ACTUALLY BRITAIN MEANS TO RAISE CASH FLOW FOR UK CONCERNS BY CUTTING THE RATE OF THE TAX THEY PAY ON DIVIDENDS AS AN ADVANCE ON CORPORATE TAXES THE CORPORATE RATE REMAINS 33 YET THIS MEASURE WORKS AGAINST UNITS OF US MULTINATIONALS FOX SAYS UNDER THE USUK TAX TREATY THEY GET PARTIAL REFUNDS OF TAXES ON DIVIDENDS BUT THE IMPACT OF THE MEASURE IS TO LOWER REFUNDS AND THUS RAISE THE EFFECTIVE TAX RATE OTHER GOVERNMENT PROPOSALS AFFECTING THE ADVANCE CORPORATE TAX WILL BENEFIT UK COMPANIES WITH FOREIGN DIVIDENDPAYING UNITS AND WILL MAKE BRITAIN MORE ATTRACTIVE AS A HEADQUARTERS FOR EUROPEAN OPERATIONS FOX SAYS STATE TAX REFORMS INCHED AHEAD IN 1992 A STUDY REPORTS TO STEVEN GOLD OF THE CENTER FOR THE STUDY OF THE STATES REFORM MEANS MAKING TAXES FAIRER SIMPLER AND MORE BALANCED BROADENING BASES AND EASING BURDENS ON THE POOR STATES MADE FEW CHANGES IN ELECTION YEAR 1992 HE NOTES BUT FOUR OF THE FIVE STATES THAT RAISED PERSONALINCOMETAX RATES MADE THEM MORE PROGRESSIVE THREE KANSAS MARYLAND AND OHIO RAISED RATES ONLY FOR UPPERBRACKET TAXPAYERS AT LEAST 11 STATES DROPPED SOME SALESTAX EXEMPTIONS MOSTLY FOR SERVICES CONTINUING THAT BASEBROADENING TREND STILL ONLY FOUR OF THE NINE STATES THAT CHANGED PERSONALINCOME OR SALES TAXES SIGNIFICANTLY ALSO MADE THEIR SYSTEMS MORE BALANCED BY TAKING ADVANTAGE OF LITTLEUSED REVENUE SOURCES GOLD SAYS MISSISSIPPI AND TENNESSEE MADE THEIR SYSTEMS LESS BALANCED BY EMPHASIZING SALES TAXES AGAIN MONTANA DID THE SAME BY RAISING PERSONAL INCOME TAXES IDAHO IOWA KANSAS AND MARYLAND ENACTED TAX RELIEF FOR POOR FAMILIES THE SCIENTOLOGY CHURCH HASN'T HAD MANY VICTORIES IN ITS EXTENSIVE TAX BATTLES ONE CAME WHEN US APPEALS JUDGES UPHELD A RULING QUASHING AN IRS SUMMONS FOR VOLUMINOUS RECORDS OF THE SECT'S BOSTON CHURCH NOW THE US DISTRICT COURT IN BOSTON SAYS THE IRS'S POSITION IN THE CASE WASN'T JUSTIFIED AND HAS ORDERED THE IRS TO PAY THE CHURCH 80787 FOR LEGAL COSTS THREE FOR THE MONEY MANY A RESIDENT OF NEW YORK NEW JERSEY OR CONNECTICUT WHO WORKS IN MORE THAN ONE OF THE STATES FACES DOUBLE TAXATION THE NEW YORK CITY BAR ASSOCIATION SAYS IT URGES NEW STATE SYSTEMS TO ENSURE THAT WAGES AND BUSINESS INCOME ARE TAXED ONLY ONCE THE INTEREST YOU PAY ON OVERDUE FEDERAL TAXES WILL STAY AT 7 IN THE SECOND QUARTER IRS REVENUE RULING 9324 SAYS THE RATE THE IRS PAYS ON OVERDUE REFUNDS ALSO REVIEWED QUARTERLY WILL REMAIN AT 6 FINDERS KEEPERS DOES THAT MAKE THE IRS THE WEEPERS JOSEPH H HALE AND ANN W MCREE WERE CONVICTED IN GEORGIA OF FRAUDULENTLY CASHING AND KEEPING THE PROCEEDS OF AN ERRONEOUS IRS REFUND CHECK FOR 359380 IN TRYING TO COLLECT OVERDUE TAXES OF 19 MILLION FROM HALE THE IRS HAD SEIZED AND SOLD PROPERTY BELONGING TO HIM MCREE AND HER MOTHER HALE DIDN'T SEEK A REFUND AN IRS COMPUTER SENT ONE TO HIM BECAUSE OF AN ACCOUNTING GLITCH THE COUPLE APPEALED THE CONVICTIONS TO THE 11TH US CIRCUIT COURT OF APPEALS NOW JUDGES HAVE VOTED 21 TO OVERTURN THEM THE CONVICTIONS WERE BASED ON CHARGES THAT THE COUPLE CONVERTED GOVERNMENT PROPERTY TO THEIR OWN USE BUT JUDGE BIRCH FOR THE MAJORITY NOTED THAT HALE DID NOTHING TO INDUCE THE IRS TO WRITE A CHECK PAYABLE TO HIM ONCE HE GOT THE CHECK IT NO LONGER WAS US PROPERTY BUT THE DECISION IS NARROW THE JUDGE INDICATED THE US COULD HAVE PROSECUTED THE COUPLE FOR HIDING THE CASH FROM RECOVERY BUT IT FAILED TO THE IRS ALSO COULD HAVE RELIED ON CIVILLAW PROCEDURES TO RECOVER THE MONEY AS IT HAS IN OTHER CASES OF ERRONEOUS REFUNDS THE JUDGE ADDED BRIEFS A BILL BY REP STARK D CALIF TO FOSTER USE OF HYPODERMIC NEEDLES THAT PROTECT HEALTHCARE WORKERS FROM PUNCTURES WOULD IMPOSE A TAX ON UNSAFE NEEDLES IN 1997 IN DOING RETURN ALLOCATIONS BASED ON THE NUMBER OF DAYS IN THE YEAR REMEMBER THAT 1992 A LEAP YEAR HAD 366 9303240052 930324 LEISURE & ARTS FORD MUSEUM HONORS INDUSTRIAL AGE BY JACQUELINE MITCHELL DEARBORN MICH HORSEDRAWN CARRIAGES STILL TROT THROUGH GREENFIELD VILLAGE GIVING TOURISTS A QUICK GLIMPSE OF WHAT SMALLTOWN USA WAS LIKE BEFORE THE AUTOMOBILE LITERALLY DROVE PEOPLE AWAY FROM THE FARMS AND INTO THE BIG CITY FACTORIES BUT THE BEST WAY TO TOUR THIS OUTDOOR MUSEUM FOUNDED BY HENRY FORD IN 1929 IS BY WALKING IT'S THE ONLY WAY TO GET A CLOSE LOOK AT THE PRESERVED HOMES AND WORKPLACES OF SOME OF THE BRIGHTEST 19THCENTURY THINKERS NOAH WEBSTER AND THOMAS EDISON AMONG THEM THERE'S ALSO THE ORIGINAL 1880S BOYHOOD FARM HOME OF TIRE MAGNATE HARVEY FIRESTONE IT WAS MOVED BRICK BY BRICK FROM EASTERN OHIO AND IT NOW HOUSES GREENFIELD VILLAGE STAFF MEMBERS WHO GROW CROPS AND RAISE LIVESTOCK HENRY FORD CREATED THIS FICTITIOUS VILLAGE AS A LIVING MONUMENT TO A WAY OF LIFE HE HELPED DESTROY BY INVENTING THE MASS PRODUCTION OF THE AUTOMOBILE AND NOW THE HENRY FORD MUSEUM LOCATED JUST A FEW FEET FROM THE VILLAGE HAS ERECTED A NEW PERMANENT EXHIBIT TITLED MADE IN AMERICA WHICH PICKS UP WHERE GREENFIELD VILLAGE LEAVES OFF THAT'S IN THE 1880S WHEN AMERICA'S INDUSTRIAL REVOLUTION WAS YOUNG AND HENRY FORD WAS IN HIS 20S BY MEMORIALIZING THE WORLD THAT FORD CREATED THE EXHIBIT SIGNALS ITS WANING AND THE EMERGENCE OF CONTEMPORARY AMERICA'S POSTINDUSTRIAL HIGHTECH SERVICECENTERED SOCIETY IN FACT THE EXHIBIT OPENED THE SAME WEEK IN DECEMBER THAT THE INDUSTRIAL GIANT GENERAL MOTORS CORP ANNOUNCED IT WOULD CLOSE EIGHT MORE NORTH AMERICAN FACTORIES AND ELIMINATE NEARLY 14000 JOBS MADE IN AMERICA TELLS THE STORY OF THIS COUNTRY'S INDUSTRIAL ACHIEVEMENTS AND FAILURES IT'S A NOSTALGIC LOOK AT THE US DURING ITS INDUSTRIAL PEAK AND IT'S ONE OF THE FEW PLACES TO SEE AN ASSEMBLY LINE USING ROBOTICS OR A FACTORY MASS ASSEMBLING PRODUCTS VIRTUALLY ALL OF THE MAJOR US MANUFACTURERS HAVE ENDED PLANT TOURS FOR COMPETITIVE REASONS AND BECAUSE AMERICA'S POSTINDUSTRIAL SOCIETY IS ALSO HIGHLY LITIGIOUS A PERSON WHO SLIPS AND FALLS DURING A TOUR MIGHT MAKE HIS NEXT VISIT TO A LAWYER'S OFFICE HENRY FORD WAS 66 YEARS OLD WHEN HE FIRST OPENED GREENFIELD VILLAGE ON THE EVE OF THE GREAT DEPRESSION HIS MENTOR AND FRIEND THOMAS EDISON AND PRESIDENT HERBERT HOOVER WERE AMONG THE DIGNITARIES WHO ATTENDED THE DEDICATION CEREMONY GREENFIELD VILLAGE INITIALLY FUNCTIONED NOT AS A PUBLIC MUSEUM PER SE BUT AS AN EDUCATIONAL FACILITY AND THOUGH IT WASN'T A VILLAGE IN THE REAL SENSE WITH RESIDENTS IT DID HAVE ITS OWN PRIVATE SCHOOL SEVERAL GENERATIONS OF CHILDREN WERE TAUGHT IN CLASSROOMS IN THIS UNIQUE ENVIRONMENT UP UNTIL 1969 AT GREENFIELD VILLAGE SCHOOLCHILDREN EACH YEAR STILL TOUR A REPLICA OF THE BIKE SHOP WHERE ORVILLE AND WILBUR WRIGHT BUILT THEIR FIRST AIRPLANE AND OF THE MENLO PARK NJ LABORATORY COMPLEX WHERE THOMAS EDISON PERFECTED MORE THAN 400 INVENTIONS THEY VIEW A MEMORIAL TO THE SCIENTIST AND INVENTOR GEORGE WASHINGTON CARVER AS WELL AS A REPLICA OF THE SHOP WHERE FORD MADE HIS FIRST UNSUCCESSFUL ATTEMPT TO SELL AUTOMOBILES THE ADJOINING HENRY FORD MUSEUM OPENED IN THE EARLY 1930S AND UNTIL HIS DEATH IN 1947 FORD COLLECTED ALL SORTS OF ITEMS TO STOCK IT HE WAS PARTICULARLY INTERESTED IN SOURCES OF POWER SO THERE ARE LOTS OF PRIMITIVE STEAM ENGINES NOW THIS MUSEUM ALSO HOUSES THE MADE IN AMERICA EXHIBIT WHICH INCLUDES SUCH EMBLEMS OF THE FACTORY ERA AS AN AUTOMATED ASSEMBLYLINE SYSTEM USED TO PRODUCE ELECTRICAL SWITCHES AT BODINE CORP IN BRIDGEPORT CONN UNTIL 1991 AND ANOTHER FOR MAKING VIDEO CASSETTES DISPLAYED NEARBY IS THE FIRST INDUSTRIAL ROBOT INSTALLED IN AN AMERICAN ASSEMBLY PLANT MORE THAN 30 YEARS AGO AND CIRCLING OVERHEAD THROUGH THE EXHIBITION IS A CONVEYOR CARRYING A VARIETY OF INDUSTRIAL PRODUCTS A SHOPPING CART A CAR HOOD WORK BOOTS A TIRE A TOILET AND A WOOD CHAIR NEARBY IS A 1991 SIXAXIS ROBOT ARM USED IN SOME AUTO ASSEMBLY PLANTS TO PAINT SELECTED CAR PARTS IT WAS BUILT BY GM IN A NOW DISSOLVED PARTNERSHIP WITH JAPAN'S FANUC LTD THE EXHIBIT RATHER BOLDLY FOR A DETROIT MUSEUM BEARING THE NAME OF HENRY FORD ALSO NOTES JAPAN'S CONTRIBUTIONS TO US MANUFACTURING PROCESSES SPECIFICALLY IT HIGHLIGHTS JAPANESE INNOVATIONS IN QUALITY EFFICIENCY AND LEAN PRODUCTION THE LEANPRODUCTION SYSTEM MAKING THE SAME VOLUME OF CARS AS MASS PRODUCTION USING HALF THE LABOR GAVE THE FORDSTYLE ASSEMBLY LINE ITS MOST SERIOUS CHALLENGE NEARBY A JAPANESE TELEVISION SET SHOWS A VIDEOTAPE OF THE WAY IT WAS BACK WHEN THE US WAS THE WORLD LEADER IN HEAVY INDUSTRY AND THE JAPANESE MANUFACTURED CHEAP TOYS IN THE SAME ROOM THERE'S A BIG BLOWUP OF A BLACKANDWHITE PHOTOGRAPH TAKEN AROUND 1915 OF THE ASSEMBLY PLANT IN HIGHLAND PARK MICH THAT BUILT FORD'S MODEL T SUSPENDED IN THE AIR IS A PARTLY ASSEMBLED 1923 MODEL T TOURING CAR JUST AS IT MIGHT HAVE LOOKED IN FORD'S DAY ON ITS WAY DOWN THE LINE THE BRIEFNESS OF THE ERA FORD SET IN MOTION WOULDN'T HAVE SURPRISED HIM MR FORD SAW HIMSELF AS A CHANGE MAKER SAYS HAROLD K STRAMSTAD JR PRESIDENT OF THE EDISON INSTITUTE WHICH OWNS THE MUSEUM AND GREENFIELD VILLAGE BUT HE ALSO SAW THE NEED TO PRESERVE SOME THINGS THAT CHANGE LEFT BEHIND AND MR FORD RECOGNIZED THAT ONCE YOU STARTED THE PROCESS OF CHANGE YOU COULDN'T STOP IT MS MITCHELL IS A REPORTER IN THE JOURNAL'S DETROIT BUREAU 9303240051 930324 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 119 DAYS 310 120 TO 149 DAYS 313 150 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 314 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 280 SIX MONTHS 296 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 310 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 303 90 DAYS 304 120 DAYS 307 150 DAYS 308 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 5/16 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 9 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY MARCH 22 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 294 13 WEEKS 305 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 722 60 DAYS 732 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 721 60 DAYS 731 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 279 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303240050 930324 INTERNATIONAL BRIEF FUJI HEAVY INDUSTRIES LTD FIRM SEES YEAREND LOSS INSTEAD OF EXPECTED PROFIT FUJI HEAVY INDUSTRIES LTD JAPANESE MAKER OF SUBARUBRAND CARS SAID IT IS LIKELY TO HAVE AN UNCONSOLIDATED LOSS OF FOUR BILLION YEN 346 MILLION IN THE YEAR ENDING MARCH 31 INSTEAD OF A 1BILLIONYEN PROFIT THE COMPANY PREDICTED IN NOVEMBER FUJI HEAVY TOKYO WHICH POSTED A 409BILLIONYEN LOSS LAST FISCAL YEAR HAD EXPECTED TO TURN A PROFIT THIS YEAR BUT THE PLAN FAILED DUE TO THE CONTINUED SLUMP IN THE JAPANESE CAR MARKET LOSSES FROM THE YEN'S SHARP APPRECIATION AND VALUATION LOSSES ON ITS STOCK HOLDINGS THE COMPANY SAID THE CAR MAKER SAID ITS NET LOSS WILL EXPAND FURTHER TO 850 BILLION YEN AS THE COMPANY PLANS TO SET UP A RESERVE FOR FUTURE LOSSES EXPECTED IN THE US BECAUSE THE BUSINESS PERFORMANCE OF ITS US SUBSIDIARY HAS BEEN POOR 9303240049 930324 BUSINESS BRIEF AMERICAN EXPRESS CO STAKE IN FIRST DATA CORP IS REDUCED TO UNDER 25 AMERICAN EXPRESS CO REDUCED ITS STAKE IN FIRST DATA CORP ITS FASTGROWING CREDITCARD PROCESSING UNIT TO LESS THAN 25 IN AN OFFERING OF 32 MILLION SHARES THE SHARES OF FIRST DATA OFFERED AT 32 APIECE ROSE TO 33 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMERICAN EXPRESS HAS SAID IT PLANS TO COMBINE PROCEEDS FROM THE SALE ESTIMATED AT 1 BILLION TO 11 BILLION BEFORE FEES WITH 26 BILLION EXPECTED FROM THE PREVIOUSLY ANNOUNCED SALES OF ITS SHEARSON BROKERAGE UNIT AND BOSTON CO SUBSIDIARY TO BOLSTER ITS BALANCE SHEET AND MOVE FASTER IN REVAMPING ITS CORE CHARGECARD BUSINESS THE OFFERING INCLUDED 314 MILLION SHARES OWNED BY AMERICAN EXPRESS AND 600000 SHARES OWNED BY THE AMERICAN EXPRESS FOUNDATION THE SALE REDUCES AMERICAN EXPRESS'S 54 STAKE IN FIRST DATA'S 110 MILLION SHARES OUTSTANDING TO LESS THAN 249 IF UNDERWRITERS EXERCISE AN OPTION TO SELL AN ADDITIONAL 32 MILLION SHARES AMERICAN EXPRESS'S INTEREST WILL SHRINK TO 22 9303240048 930324 WHO'S NEWS DISSIDENTS AT KINARK WIN SEATS ON BOARD PUTTING END TO FIGHT TULSA OKLA A DISSIDENT SHAREHOLDER GROUP WON THREE OF THE SEVEN SEATS ON THE BOARD OF KINARK CORP ENDING A BATTLE FOR CONTROL OF THE COMPANY THE CHEMICAL AND STEEL GALVANIZING COMPANY SAID THAT THE THREE DIRECTORS PUT UP BY NORTHBRIDGE GROUP WILL REPLACE THREE KINARK DIRECTORS THE SHUFFLING OF THE BOARD WAS PART OF A SETTLEMENT OF LAWSUITS FILED AGAINST KINARK BY NORTHBRIDGE EARLIER THIS YEAR IN BOTH STATE AND FEDERAL COURT IN DELAWARE AS PART OF THE SETTLEMENT THE COMPANY SAID IT CANCELED A 200000SHARE STOCK OPTION AWARD GRANTED TO KINARK DIRECTOR GARRY BRAININ MR BRAININ PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ALTAIR CORP AN AGRICULTURAL AND ELECTRONICS CONCERN WILL ALSO RESIGN AS CHAIRMAN OF KINARK'S EXECUTIVE COMMITTEE AND ALTAIR WILL SELL 236000 SHARES OF KINARK TO NORTHBRIDGE INCREASING NORTHBRIDGE'S STAKE TO ABOUT 22 KINARK SAID IT ALSO WAS ABANDONING THE PRIVATE SALE TO ALTAIR OF 206612 KINARK SHARES UNDER TERMS OF THE SETTLEMENT MR BRAININ WILL RESIGN AS A KINARK DIRECTOR ALONG WITH GEORGE B COLLINS AND JOHN F GUY BOTH EXECUTIVES OF ALTAIR THEY WILL BE REPLACED BY RICHARD BAIERLEIN PRESIDENT OF NORTHBRIDGE HOLDINGS INC MICHAEL T CRIMMINS OF NORTHBRIDGE HOLDINGS AND MARK E WALKER OF THE ROBERT G AND PAULINE B WALKER REVOCABLE TRUST NORTHBRIDGE GROUP WHICH CONSISTS OF NORTHBRIDGE HOLDINGS A BEDMINISTER NJ MANUFACTURER AND THE WALKER TRUST A FAMILY ESTATE INITIATED THE BATTLE FOR CONTROL OF KINARK BECAUSE IT WAS DISSATISFIED WITH THE WAY THINGS WERE BEING HANDLED UNDER THE ALTAIRDOMINATED BOARD SAID MR BAIERLEIN MR BAIERLEIN SAID THE STOCK OPTIONS GRANTED TO MR BRAININ WERE INAPPROPRIATE BECAUSE THEY WOULD HAVE DEPLETED THE POOL OF STOCK OPTIONS AVAILABLE TO EMPLOYEES PAUL CHASTAIN THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF KINARK SAID WE FELT AT THE TIME THE OPTIONS WERE APPROPRIATE IN RETURN FOR HIS SERVICES 9303240047 930324 BUSINESS BRIEF HILLHAVEN CORP HEALTHCARE CONCERN'S PROFIT SOARED IN FISCAL THIRD PERIOD HILLHAVEN CORP SAID NET INCOME FOR THE FISCAL THIRD QUARTER ENDED FEB 28 MORE THAN DOUBLED TO 89 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER THE TACOMA WASH HEALTHCARE PROVIDER EARNED 31 MILLION OR TWO CENTS A SHARE THE RESULTS FOR THE LATEST QUARTER INCLUDED A 565000 CHARGE FOR EARLY RETIREMENT OF DEBT HILLHAVEN CITED ROBUST GROWTH IN ITS SOCALLED SPECIALTY PROGRAMS WHICH PROVIDE SPEECH OCCUPATIONAL AND PHYSICAL THERAPY AND CARE FOR ALZHEIMER'S PATIENTS AMONG OTHER THINGS REVENUE ROSE 10 TO 3151 MILLION FROM 2867 MILLION FOR THE NINE MONTHS HILLHAVEN HAD PROFIT OF 276 MILLION OR 22 CENTS A SHARE INCLUDING THE DEBTRETIREMENT CHARGE AND A 11 MILLION CHARGE FOR AN ACCOUNTING CHANGE A YEAR EARLIER HILLHAVEN HAD A NET LOSS OF 865 MILLION OR 82 CENTS A SHARE REVENUE FELL 2 TO 9326 MILLION FROM 9554 MILLION 9303240046 930324 INTERNATIONAL BRIEF ENTE NAZIONALE IDROCARBURI ITALIAN FIRM TO RESTRUCTURE REDUCE OVERSEAS OPERATIONS ENTE NAZIONALE IDROCARBURI ITALY'S GIANT STATE ENERGY HOLDING COMPANY PLANS TO RESTRUCTURE AND REDUCE THE NUMBER OF ITS OPERATIONS OVERSEAS MANY OF ENI'S OVERSEASBASED COMPANIES ALLEGEDLY HAVE BEEN USED TO PROCESS ILLEGAL POLITICAL PARTY FINANCING ENI'S CHAIRMAN GABRIELE CAGLIARI HAS BEEN ARRESTED ALONG WITH THREE OTHER BOARD MEMBERS IN CONNECTION WITH ITALY'S POLITICALCORRUPTION SCANDAL THE STREAMLINING OF ENI'S FOREIGN HOLDINGS IS AIMED AT INCREASING TRANSPARENCY AND IMPROVING THE SYSTEM OF CONTROL AN ENI SPOKESWOMAN SAID ENI'S BOARD HAS DECIDED TO SET UP A COMMISSION TO RESTRUCTURE THE 209 COMPANIES IT CONTROLS OUTSIDE ITALY AND PLANS TO CUT THE NUMBER DRASTICALLY SHE ADDED SEPARATELY ENI SAID ITS CHEMICALS ARM ENICHEM SPA WOULD SELL INCA INTERNATIONAL A PLASTICS PRODUCER BRINGING THE NUMBER OF SMALLER ENI COMPANIES OR BRANCHES CURRENTLY ON THE MARKET TO NINE 9303240045 930324 BUSINESS BRIEF GREAT ATLANTIC & PACIFIC TEA CO FIRM HAD 401 MILLION LOSS IN THE FISCAL FOURTH QUARTER GREAT ATLANTIC & PACIFIC TEA CO REPORTED A SIZABLE FISCAL FOURTHQUARTER LOSS REFLECTING A 426 MILLION CHARGE TAKEN FOR A SERIES OF STORE CLOSINGS A&P'S LOSS FOR THE 12WEEK QUARTER ENDED FEB 27 WAS 401 MILLION OR 105 A SHARE COMPARED WITH A YEAREARLIER PROFIT OF 161 MILLION OR 42 CENTS A SHARE THE MONTVALE NJ SUPERMARKET CHAIN TOOK THE CHARGE EQUIVALENT TO 111 A SHARE AS PART OF A REALIGNMENT OF OPERATIONS CAUSED BY THE ACCELERATED CLOSING OF OBSOLETE STORES SALES DROPPED 13 TO 24 MILLION FROM 27 MILLION THE COMPANY SAID THE DECLINE REFLECTED THE DIFFERENCE BETWEEN A 13WEEK QUARTER LAST YEAR AND A 12WEEK QUARTER THIS YEAR A DECLINE IN THE CANADIAN EXCHANGE RATE AND THE CLOSURE OF 56 STORES IN ADDITION TO ITS STORES IN THE US A&P OWNS SUPERMARKETS IN CANADA 9303240044 930324 BUSINESS BRIEF RETIX FIRM'S STOCK PLUNGES AMID 1STPERIOD PROFIT ESTIMATE SHARES OF RETIX LOST A THIRD OF THEIR VALUE AFTER THE COMPANY SAID IT MAY BREAK EVEN OR INCUR A SMALL TO MODERATE LOSS IN THE FIRST QUARTER ENDING APRIL 3 RETIX SHARES CLOSED AT 650 DOWN 3625 IN NATIONAL OVER THE COUNTER TRADING MORE THAN 53 MILLION SHARES CHANGED HANDS MAKING RETIX IN SANTA MONICA CALIF THE MOST HEAVILY TRADED OVERTHECOUNTER STOCK THE SHARES TRADED AS HIGH AS 1975 IN THE PAST YEAR THE MAKER OF COMPUTER SOFTWARE PRODUCTS ALSO SAID REVENUE MAY FALL AS MUCH AS 15 RESULTS ARE BEING HURT BY DELAYS IN RELEASING CERTAIN UPDATED SOFTWARE PRODUCTS USED TO SUPPORT INTERNATIONAL BUSINESS MACHINES CORP'S TOKEN RING NETWORKS RETIX SAID RETIX ALSO BLAMED LOWERTHANEXPECTED SALES OF OTHER COMPUTER NETWORKING PRODUCTS RETIX SAID IT ISSUED THE ANNOUNCEMENT AFTER A MORGAN STANLEY & CO ANALYST CUT HIS EARNINGS ESTIMATE FOR THE COMPANY APPARENTLY TRIGGERING HEAVY TRADING IN RETIX SHARES FRIDAY AND MONDAY IN THE QUARTER ENDED MARCH 28 1992 RETIX HAD NET INCOME OF 17 MILLION OR 10 CENTS A SHARE ON REVENUE OF 166 MILLION 9303240043 930324 BUSINESS BRIEF WARNERLAMBERT CO COMPANY SEEKS INVESTORS FOR ITS NOVON PRODUCTS UNIT WARNERLAMBERT CO MORRIS PLAINS NJ IN A MOVE TO FOCUS MORE CLOSELY ON ITS CORE BUSINESSES SAID IT IS SEEKING INVESTORS FOR ITS NOVON PRODUCTS GROUP UNIT WHICH MAKES A BIODEGRADABLE PLASTICLIKE MATERIAL MADE FROM STARCH AS A RESULT THE PHARMACEUTICAL COMPANY WILL TAKE A CHARGE OF 45 MILLION FOR THE FIRST QUARTER TO COVER A WRITEDOWN OF NOVON'S ASSETS AND OTHER EXPECTED COSTS THAT CHARGE WILL BE OFFSET BY A 46 MILLION CREDIT BECAUSE OF THE ADOPTION OF NEW ACCOUNTING STANDARDS NEVERTHELESS WARNERLAMBERT SAID FIRSTQUARTER EARNINGS SHOULD SHOW DOUBLEDIGIT GROWTH WARNERLAMBERT HAS INVESTED ABOUT 100 MILLION IN THE NOVON DIVISION SINCE IT WAS FORMED IN 1990 THE GROUP HAD EXPECTED TO CONTRIBUTE 10 MILLION TO 20 MILLION IN SALES THIS YEAR BUT A SPOKESMAN SAID NOVON'S SALES WILL BE LESS THAN THAT 9303240042 930324 HEARD ON THE STREET MANAGER WITH BIG AMOUNT OF FOREIGN STOCKS IN PORTFOLIO FINDS VALUE KNOWS NO BORDERS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HUNTING FOR CHEAP STOCKS PUT THE MAP OF THE USA AWAY AND START SPINNING THE GLOBE THAT'S WHAT CHARLES BRANDES HAS DONE OVER THE PAST 2 1/2 YEARS THE HEAD OF BRANDES INVESTMENT MANAGEMENT BASED IN SAN DIEGO NOW HAS TWOTHIRDS OF HIS 650 MILLION PORTFOLIO IN FOREIGN STOCKS IN 1992 HIS GLOBAL PORTFOLIOS WERE UP 1212 WHILE THE S&P SHOWED A 766 GAIN WITH DIVIDENDS REINVESTED HE SAYS YEARTODATE HE SAYS HIS GLOBAL PORTFOLIO IS UP AN IMPRESSIVE 8 MR BRANDES DEVELOPED HIS IDEAS ABOUT VALUE INVESTING IN CONVERSATION WITH ONE OF THE MASTERS BENJAMIN GRAHAM MR GRAHAM PUBLISHED THE VALUE INVESTORS' BIBLE SECURITIES ANALYSIS ALONG WITH DAVID DODD AND SIDNEY COTTLE IN 1934 MR BRANDES KNEW MR GRAHAM WHEN THE SAGE WAS RETIRING IN NEARBY LA JOLLA IN THE EARLY 1970S THEY DIDN'T TALK A LOT ABOUT FOREIGN STOCKS THEN BECAUSE THE US MARKET WAS JUST ABOUT THE ONLY GAME IN THE WORLD BUT NOW MR BRANDES'S MOTTO IS VALUE KNOWS NO BORDERS AND WITH THE US MARKET TRADING NEAR RECORD HIGHS SOME FOREIGN MARKETS LOOK ALL THE MORE ATTRACTIVE WE STICK TO THE BASICS LOW STOCK PRICE/EARNINGS MULTIPLES LOW BOOK VALUE AND CONSERVATIVE BALANCE SHEETS SAYS MR BRANDES BUT YOU HAVE TO INTERPRET THE ACCOUNTING TELEFONICA DE ESPANA A BRANDES HOLDING FOR EXAMPLE HAS MORE RAPID DEPRECIATION OF CAPITAL EXPENDITURES THAN ITS US COUNTERPARTS THE UPFRONT CHARGES REDUCE EARNINGS AND GIVE THE STOCK A P/E OF ABOUT 13 BUT ADJUSTED TO US STANDARDS THE STOCK IS TRADING AT ABOUT SEVEN TIMES EARNINGS MR BRANDES FIGURES SPAIN IS MR BRANDES'S SECONDLARGEST COUNTRY CONCENTRATION AFTER HONG KONG HE OWNS AMERICAN DEPOSITARY RECEIPTS OF ENDESA AN ELECTRIC UTILITY TRADING AT 36 1/8 AND HE HAS HOLDINGS IN NEW YORK STOCK EXCHANGELISTED BANCO BILBAO VIZCAYA NOW AT 25 1/4 MR BRANDES THINKS HE MIGHT LIKE TO LOAD THE BOAT WITH BRAZILIAN STOCKS SOMETIME IN THE FUTURE THE MARKET IS SO CHEAP AND THERE IS THE POSSIBILITY THAT THEY COULD REFORM THEMSELVES ECONOMICALLY LIKE MEXICO HE SAYS BUT THEY HAVE SO MANY PROBLEMS WITH THE ECONOMY YOU HAVE TO BACK OFF FOR AWHILE RIGHT NOW HE OWNS ONLY THE ADRS OF TELEBRAS THE BRAZILIAN PHONE COMPANY WHEN THE TIME COMES TO BUY MORE BRAZILIAN STOCKS IT WILL BE A CHORE YOU NEED SPECIAL PERMISSION FROM THE CVM THE SECURITIES AND EXCHANGE COMMISSION OF BRAZIL TO OWN ORDINARY SHARES HE SAYS SEVERAL BRAZILIAN COUNTRY FUNDS ARE AVAILABLE BUT MR BRANDES SAYS I LIKE TO PICK THE STOCKS MYSELF WHERE ELSE AROUND THE WORLD IS HE FINDING VALUE MR BRANDES IS PARTICULARLY EXCITED ABOUT CHINA WE'RE HEAVILY INVESTED IN HONG KONG CHINA IS GOING TO BE THE MOST EXCITING COUNTRY IN THE WORLD ECONOMICALLY HE SAYS HE HAS A HOLDING IN AN ADR CALLED HOPEWELL HOLDINGS WHICH CHANGES HANDS ON THAT THINLY TRADED SECTOR OF THE STOCK MARKET CALLED THE PINK SHEETS UNDER THE SYMBOL HOWHY HOPEWELL IS BUILDING A TOLL ROAD BETWEEN HONG KONG AND CANTON IN GUANGDONG PROVINCE THIS PROVINCE'S GROSS DOMESTIC PRODUCT EXPANDED AT A 17 RATE LAST YEAR MR BRANDES SAYS HOPEWELL CAN EARN A 15 RETURN ON THE TOLLWAY GIVEN THE VOLUME OF TRAFFIC HE ESTIMATES MORE IMPORTANT IT HAS REAL ESTATE DEVELOPMENT RIGHTS ALONG THE WHOLE HIGHWAY HE SAYS WITHIN THREE TO FIVE YEARS HE THINKS THE STOCK COULD TRIPLE FROM ITS CURRENT PRICE OF AROUND 3 1/8 MR BRANDES HASN'T ANY INTEREST IN JAPAN CURRENTLY I WON'T BUY IT UNTIL THE NIKKEI HITS 10000 HE SAYS THOUGH A HANDFUL OF JAPANESE SHARES MIGHT LOOK ATTRACTIVE IF THEY FELL 25 FROM CURRENT LEVELS CURRENTLY THE BENCHMARK OF 225 JAPANESE STOCKS STANDS AT AROUND 18500 MR BRANDES THINKS INDONESIA IS A REASONABLY PRICED STOCK MARKET BUT HE IS A BIT SHY ABOUT THE POLITICAL RISK SO TO GET SOME EXPOSURE HE BOUGHT THE JAKARTA GROWTH FUND A CLOSEDEND FUND THAT TRADES ON THE NEW YORK STOCK EXCHANGE AT 7 3/4 CLOSEDEND FUNDS AVOID THE PROBLEM OF BUYING STOCKS IN A FOREIGN CURRENCY THOUGH INVESTORS STILL ARE EXPOSED TO CURRENCY SWINGS MR BRANDES DOESN'T HEDGE HIS CURRENCY RISK HE SAYS AS IT IS TOO EXPENSIVE AND IN THE LONG RUN HE BELIEVES A DIVERSE BASKET OF CURRENCIES BALANCES OUT LOSSES AND GAINS WE ARE TALKING QUITE LONG TERM BUT WE ARE QUITE LONGTERM INVESTORS HE SAYS ANOTHER BIG COUNTRY EXPOSURE FOR MR BRANDES IS MEXICO HE IS ADDING TO A HOLDING OF TELEFONOS DE MEXICO AMERICAN DEPOSITARY SHARES BUT MORE INTERESTING OF LATE IS PIPE MAKER TUBOS DE ACERO AN ADR THAT TRADES ON THE AMERICAN STOCK EXCHANGE AT 4 3/4 OTHER MARKETS THAT INTRIGUE HIM ARE TURKEY AND THAILAND THEY AREN'T PARTICULARLY SIGNIFICANT IN INTERNATIONAL STOCK PERFORMANCE BENCHMARKS SUCH AS THE MORGAN STANLEY EUROPE ASIA FAR EAST OR EAFE INDEX BUT THEY LOOK LIKE GOOD PLACES TO PROSPECT FOR VALUE A GREAT MAJORITY OF INTERNATIONAL MONEY MANAGERS ARE TOPDOWN' SAYS MR BRANDES THEY WON'T MOVE AWAY FROM THE INTERNATIONAL INDEXES AS FAR AS WE WILL WE JUST GO WHERE WE WANT TO GO 9303240041 930324 SENATE PANEL CITES STATE REGULATORS' ROLE IN GSLIC'S FAILURE WASHINGTON A SENATE SUBCOMMITTEE SAID THAT LAX STATE REGULATION WAS PARTLY TO BLAME FOR THE FAILURE OF GUARANTEE SECURITIES LIFE INSURANCE CO OF JACKSONVILLE FLA WHILE PRIMARY FAULT FOR THE GSLIC FIASCO RESTS WITH THE OFFICERS OF GUARANTEE SECURITIES THE PERMANENT INVESTIGATIONS SUBCOMMITTEE SAID IN A REPORT ON THE COMPANY'S FAILURE THE FLORIDA INSURANCE DEPARTMENT FAILED IN ITS DUTY TO THE TAXPAYERS AND POLICYHOLDERS OF THAT STATE AS WELL AS THE POLICYHOLDERS NATIONWIDE THE INVESTIGATIONS PANEL CHAIRED BY SEN SAM NUNN D GA ALSO WAS SHARPLY CRITICAL OF THE ROLE OF OUTSIDE PROFESSIONALS IN THE COMPANY'S DEMISE SPECIFICALLY OF ACCOUNTANTS AND SECURITIES BROKERS THE INSURER WHICH WAS DECLARED INSOLVENT BY FLORIDA AUTHORITIES IN 1991 ENGAGED IN A SERIES OF YEAREND BOND TRADES WITH MERRILL LYNCH & CO IN THE MID1980S IN THESE TRADES GUARANTEE SECURITIES SOLD JUNK BONDS TO MERRILL LYNCH AT YEAR END AND RECEIVED TREASURY SECURITIES IN RETURN THESE TRANSACTIONS WERE REVERSED EARLY THE NEXT YEAR FLORIDA AUTHORITIES NOW CONTEND THESE WERE SHAM TRADES DESIGNED TO ALLOW THE INSURER TO MASK ITS TRUE FINANCIAL CONDITION MERRILL LYNCH WHICH IS BEING INVESTIGATED BY THE SECURITIES AND EXCHANGE COMMISSION REPEATEDLY HAS DENIED ANY WRONGDOING THE SENATE SUBCOMMITTEE'S REPORT SAID THE INSURER'S ABILITY TO DISGUISE ITS PORTFOLIO AT YEAR END AND SUBVERT RESERVE REQUIREMENTS WAS DUE IN PART TO THE FAILURE OF THE DEPARTMENT OF INSURANCE TO CAREFULLY EXAMINE THE COMPANY'S QUARTERLY FILINGS 9303240040 930324 BUSINESS BRIEF SANTA MONICA BANK FIRM GETS PROPOSED ORDER RESTRICTIONS FROM FDIC SANTA MONICA BANK SANTA MONICA CALIF SAID IT RECEIVED A PROPOSED ORDER FROM THE FEDERAL DEPOSITORY INSURANCE CORP THAT REQUIRES CERTAIN RESTRICTIONS ON THE BANK'S OPERATIONS THE PROPOSED ORDER CONTAINS RECOMMENDATIONS MADE BY THE AGENCY IN THE WAKE OF AN EXAMINATION OF THE BANK COMPLETED IN SEPTEMBER THE TERMS OF THE ORDER AREN'T FINAL YET SAID AUBREY L AUSTIN PRESIDENT OF THE BANK IN A NEWS RELEASE THE BANK SAID THE RESTRICTIONS MIGHT INCLUDE REQUIREMENTS FOR THE BANK TO REDUCE THE LEVEL OF CLASSIFIED ASSETS MAINTAIN AN ADEQUATE LOAN LOSS RESERVE AND REVISE WRITTEN LOAN POLICIES AMONG OTHER THINGS MR AUSTIN SAID THE BANK ALREADY EXCEEDS ALL REGULATORY CAPITAL REQUIREMENTS THE ORDER SPECIFICALLY INCLUDES A REQUIREMENT FOR REGULATORY APPROVAL OF DIVIDENDS SANTA MONICA BANK WHICH DIDN'T PAY A DIVIDEND IN THE FOURTH QUARTER SAID THAT IT WON'T PAY A FIRSTQUARTER DIVIDEND THE QUARTERLY DIVIDEND HAD BEEN 15 CENTS 9303240039 930324 MARKETING BRIEF TIMES MIRROR CO POSSIBLE TRANSACTIONS' NOTED FOR FOUR TELEVISION STATIONS TIMES MIRROR CO LOS ANGELES SAID IT IS DISCUSSING POSSIBLE TRANSACTIONS INVOLVING ITS FOUR BROADCAST TELEVISION STATIONS IN DALLAS ST LOUIS BIRMINGHAM ALA AND AUSTIN TEXAS THE COMPANY DECLINED TO IDENTIFY THE OTHER PARTIES INVOLVED AND SAID NO AGREEMENTS HAVE BEEN REACHED TIMES MIRROR SAID IT MADE THE ANNOUNCEMENT IN RESPONSE TO REPORTS THAT A SALE OF THE OPERATIONS WAS IMMINENT ONE SOURCE SAID POTENTIAL BUYERS INCLUDE BOB MARBUT FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER AT CLOSELY HELD HARTEHANKS COMMUNICATIONS INC OF SAN ANTONIO THE SOURCE SAID THE ASKING PRICE WAS IN THE RANGE OF 300 MILLION TO 400 MILLION MR MARBUT DIDN'T RETURN A CALL LEFT AT HIS OFFICE LATE YESTERDAY MR MARBUT AND ANOTHER TEXAS TELEVISION EXECUTIVE LAST YEAR FORMED A SAN ANTONIO COMPANY ARGYLE GROUP TO PURCHASE AND OPERATE TV PROPERTIES 9303240038 930324 LAW HIGH COURT RULING GIVES FOREIGN NATIONS SOME SHIELD AGAINST SUITS IN US COURTS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SPLINTERED SUPREME COURT MADE IT MORE DIFFICULT FOR US CITIZENS TO SUE FOREIGN GOVERNMENTS IN US COURTS THE DECISION WAS A VICTORY FOR SAUDI ARABIA AND IT ALSO WILL LIMIT THE LEGAL LIABILITY OF OTHER FOREIGN GOVERNMENTS THAT HAVE BUSINESS CONTACTS WITH THE US HOWEVER BECAUSE THE RULING AROSE FROM A RELATIVELY UNUSUAL DISPUTE IT PROBABLY WON'T DRASTICALLY CHANGE THE AUTHORITY OF US COURTS TO HEAR INTERNATIONAL COMMERCIAL DISPUTES THE JUSTICES REINSTATED A FEDERAL TRIAL JUDGE'S DISMISSAL OF A SUIT BROUGHT AGAINST SAUDI ARABIA BY A US ENGINEER WHO WORKED FOR A SAUDI GOVERNMENTOWNED HOSPITAL IN RIYADH THE CAPITAL THE ENGINEER SCOTT NELSON CHARGED THAT AFTER HE RAISED CONCERNS ABOUT SAFETY PROBLEMS AT THE HOSPITAL HIS SUPERVISORS CALLED SAUDI POLICE WHO JAILED HIM FOR 39 DAYS AND TORTURED HIM THE SAUDI GOVERNMENT DENIED IT HAD ACTED IMPROPERLY INSISTING THAT MR NELSON WAS JAILED FOR HAVING LIED ABOUT HIS EDUCATIONAL CREDENTIALS THE SAUDIS SOUGHT TO HAVE THE NELSON SUIT DISMISSED UNDER A US LAW THAT GENERALLY SHIELDS FOREIGN GOVERNMENTS FROM LEGAL ACTIONS IN US COURTS THE TRIAL JUDGE RULED FOR SAUDI ARABIA BUT A FEDERAL APPEALS COURT IN ATLANTA REVERSED THAT DECISION AND SENT THE CASE BACK FOR TRIAL THE APPEALS COURT SAID THE NELSON SUIT SHOULD PROCEED UNDER AN EXCEPTION TO THE FOREIGN SOVEREIGN IMMUNITIES ACT THE EXCEPTION ALLOWS LAWSUITS AGAINST FOREIGN GOVERNMENTS IF THEY ARE BASED UPON A COMMERCIAL ACTIVITY CARRIED ON IN THE UNITED STATES BY THE FOREIGN STATE THE APPEALS COURT SAID THAT MR NELSON'S RECRUITMENT AND HIRING IN THE US CONSTITUTED COMMERCIAL ACTIVITY BY THE SAUDI GOVERNMENT IN THIS COUNTRY THE SUPREME COURT REVERSED THE APPEALS COURT'S RULING WRITING FOR A FIVEMEMBER MAJORITY JUSTICE DAVID SOUTER SAID MR NELSON'S SUIT WAS BASED ON HIS ALLEGED MISTREATMENT BY SAUDI POLICE NOT ON COMMERCIAL ACTIVITY MR NELSON'S RECRUITMENT AND HIRING LED TO THE CONDUCT THAT EVENTUALLY INJURED HIM BUT ARE NOT THE BASIS FOR HIS LAWSUIT JUSTICE SOUTER CONCLUDED CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES SANDRA DAY O'CONNOR ANTONIN SCALIA AND CLARENCE THOMAS JOINED THE THE SOUTER OPINION JUSTICE BYRON WHITE REACHED THE SAME CONCLUSION BY MEANS OF DIFFERENT REASONING HE SAID THAT THE HARASSMENT OF A WHISTLEBLOWER IS COMMERCIAL ACTIVITY BUT THAT THE ALLEGED ABUSE OF MR NELSON DIDN'T HAVE A SUBSTANTIAL CONNECTION TO THE US AS REQUIRED UNDER THE EXCEPTION TO THE FOREIGN SOVEREIGN IMMUNITIES ACT IN A SEPARATE CASE THE HIGH COURT REJECTED A CONSTITUTIONAL CHALLENGE TO THE FEDERAL GOVERNMENT'S POLICY OF DETAINING UNACCOMPANIED ILLEGAL IMMIGRANT CHILDREN AND PLACING THEM IN CHILDCARE FACILITIES 9303240037 930324 BUSINESS BRIEF POLAROID CORP PLAN EXPANDS HOLDER RIGHTS IN EVENT OF TAKEOVER BIDS IN ANOTHER SIGN OF THE GROWING POWER OF SHAREHOLDER RIGHTS GROUPS POLAROID CORP SAID IT AGREED TO AMEND ITS POISON PILL TO ALLOW SHAREHOLDERS THE RIGHT TO RESPOND DIRECTLY TO TAKEOVER BIDS THE AMENDMENT WILL LET SHAREHOLDERS VOTE TO REDEEM THEIR RIGHTS TO PURCHASE ADDITIONAL SHARES CHEAPLY IN THE FACE OF A TAKEOVER OFFER PREVIOUSLY DIRECTORS HAD THE SOLE POWER TO REDEEM RIGHTS THE NEW PLAN WAS INSTIGATED BY POLAROID SHAREHOLDER CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE UNITED SHAREHOLDERS ASSOCIATION AN ADVOCACY GROUP THAT REPRESENTS POLAROID STOCKHOLDERS POLAROID BASED IN CAMBRIDGE MASS MAKES PHOTOGRAPHIC EQUIPMENT UNDER THE NEW POLAROID PLAN A SHAREHOLDER MEETING WILL NOW BE CALLED TO VOTE ON WHETHER TO REDEEM RIGHTS TO PURCHASE ADDITIONAL SHARES WHEN A TAKEOVER OF THE COMPANY IS PROPOSED THE RIGHTS IF EXERCISED WOULD DILUTE A POTENTIAL BUYER'S SHARE THE PREVIOUS PLAN ALLOWED DIRECTORS TO DECIDE WHETHER TO REDEEM THE RIGHTS FORCING POTENTIAL BUYERS TO DEAL DIRECTLY WITH THE COMPANY 9303240036 930324 CREDIT MARKETS TREASURY NOTE BOND PRICES POST MODEST GAINS AS INVESTORS BUY ON SIGN OF LOWER INFLATION BY THOMAS T VOGEL JR AND CANDACE CUMBERBATCH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY NOTE AND BOND PRICES MADE MODEST GAINS YESTERDAY DURING LIGHT TRADING AS A SIGN OF LOWER INFLATION ENCOURAGED INVESTORS FOR THE MOMENT AT LEAST THE POLITICAL CRISIS IN RUSSIA HAS HAD LITTLE EFFECT ON THE MARKET THOUGH ANALYSTS SAID THAT COULD EASILY CHANGE IF IT APPEARS THAT PRESIDENT BORIS YELTSIN IS LOSING CONTROL MANY INVESTORS STAYED ON THE SIDELINES YESTERDAY IN ADVANCE OF TODAY'S SCHEDULED AUCTION OF TWOYEAR NOTES BY THE TREASURY THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH A 1000 FACE AMOUNT BY LATE YESTERDAY TO 104 17/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 676 THE LOWEST IN EIGHT TRADING SESSIONS FROM 680 ON MONDAY THE 10YEAR NOTE ROSE MORE THAN 1/4 POINT TO 102 18/32 TO YIELD 590 DOWN FROM 593 MEANWHILE STRONG DEMAND GREETED AN OFFERING OF NEARLY 740 MILLION OF REVENUE BONDS FROM THE PUERTO RICO TELEPHONE AUTHORITY AND SOME YIELDS WERE LOWERED AS THE SIZE OF THE OFFERING WAS INCREASED BY ABOUT 30 MILLION EARLIER THIS MONTH THERE HAD BEEN SOME WORRIES THAT PROPOSALS BY THE CLINTON ADMINISTRATION TO LIMIT THE INCOME TAX EXEMPTIONS GRANTED TO BUSINESSES OPERATING IN THE COMMONWEALTH OF PUERTO RICO COULD RESULT IN A DOWNGRADE OF THE PHONE COMPANY'S CREDIT RATING BUT CREDIT ANALYSTS SAID THAT SWEEPING CHANGES TO THE TAX REGULATIONS FOR PUERTO RICO WERE UNLIKELY TO BE APPROVED BUT SOME WORRY THAT THE SCHEDULED AUCTIONS BY THE TREASURY OF 1525 BILLION OF TWOYEAR NOTES TODAY AND 11 BILLION OF FIVEYEAR NOTES TOMORROW COULD PUSH PRICES DOWN TECHNICALLY THE MARKET IS IN GREAT SHAPE SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP BUT IT'S MY FEELING THAT THE TWOYEAR NOTE AUCTION AND THE FIVEYEAR NOTE AUCTION COULD UNDERMINE GOOD MARKET SENTIMENT IN LATE WHENISSUED TRADING YESTERDAY THE TWOYEAR NOTE YIELDED 390 DOWN FROM 391 ON MONDAY AND THE FIVEYEAR NOTE YIELDED 513 DOWN FROM 517 WORRIES ABOUT RUSSIA ARE ANOTHER FACTOR ON MANY TRADERS' MINDS THOUGH THERE HAS BEEN LITTLE RESPONSE TO EVENTS SO FAR SAID TRADERS THIS COULD EASILY CHANGE A RAPID DETERIORATION OF THE POLITICAL SITUATION THERE COULD SPARK A SOCALLED FLIGHT TO QUALITY AS FOREIGN INVESTORS MOVE THEIR MONEY TO THE RELATIVE SECURITY OF US TREASURY NOTES AND BILLS MATURING IN TWO YEARS OR LESS IF YOU SEE FURTHER DESTABILIZATION OVER THERE SAID GREG ERARDI HEAD OF GOVERNMENT TRADING AT SALOMON BROTHERS INC YOU WOULD SEE A FLIGHT TO QUALITY WITH SHORTER MATURITIES OUTPERFORMING THE REST OF THE MARKET THE MARKET HAS ALREADY DISCOUNTED MR YELTSIN'S APPARENT POLITICAL VULNERABILITY SAID MR ERARDI BUT FEW IN THE TREASURY MARKET ARE YET ALARMED ABOUT THE SITUATION BECAUSE MR YELTSIN STILL HAS THE MANDATE OF THE PEOPLE HELPING YESTERDAY'S BOND MARKET WERE MUNICIPAL DEFEASANCE PROGRAMS WHERE STATE AND LOCAL GOVERNMENTS ISSUE NEW DEBT TO REFUND OLDER HIGHERINTEREST SECURITIES BUT UNTIL THE OUTSTANDING DEBT CAN BE CALLED THE PROCEEDS FROM THE NEW OFFERINGS ARE INVESTED IN TREASURYS OFTEN SHORTTERM AND INTERMEDIATETERM SECURITIES ANOTHER FACTOR FAVORING HIGHER BOND PRICES OVER THE NEXT MONTH ACCORDING TO NANCY LAZAR AN ECONOMIST AT THE NEW YORK INVESTMENT CONSULTING FIRM ISI GROUP INC IS A WAVE OF CERTIFICATES OF DEPOSIT SET TO MATURE IN APRIL AS MUCH AS 110 BILLION OF CDS COULD MATURE DURING THAT MONTH ACCORDING TO ANALYSTS IF EVEN SOME OF THESE CDS MATURING IN THE NEXT MONTH WERE MOVED INTO THE STOCK OR BOND MARKET SAID MS LAZAR IT WOULD CERTAINLY PUSH PRICES UP SINCE 1991 YOU'VE SEEN A PRETTY CLEAR DECLINE IN CONSUMER HOLDINGS IN LOWYIELDING SHORTTERM INVESTMENTS WHICH WOULD INCLUDE CDS MONEY MARKET FUNDS AND SAVINGS ACCOUNTS SHE SAID THE AMOUNT OF THESE SHORTTERM INVESTMENTS HAS DECLINED ABOUT 200 BILLION SAID MS LAZAR OUT OF A TOTAL OF 3 TRILLION IN 1991 MORE THAN 2 BILLION OF NEW SUPPLY HIT THE MUNICIPAL BOND MARKET YESTERDAY AND THERE WAS A PARTICULARLY FRIENDLY RECEPTION FOR THE PUERTO RICO TELEPHONE AUTHORITY'S 7395 MILLION OF REVENUE REFUNDING AND NEWMONEY REVENUE BONDS AS FOR THE NEW ISSUES MARKET PARTICIPANTS SEEMED PARTICULARLY ANXIOUS TO BUY PUERTO RICO'S BONDS WHICH BEAR INTEREST THAT ISN'T SUBJECT TO LOCAL STATE OR FEDERAL TAXES THE 7395 MILLION OFFERING IS THE LARGEST ONE EVER DONE BY THE TELEPHONE AUTHORITY AND THE SECONDLARGEST OUT OF PUERTO RICO A GROUP OF UNDERWRITERS LED BY LEHMAN BROTHERS PRICED THE ISSUE WHICH INCLUDES BOTH FIXEDRATE BONDS AND A NUMBER OF DERIVATIVE SECURITIES DEMAND WAS SO STRONG THAT UNDERWRITERS WERE ABLE TO LOWER YIELDS BY 004 PERCENTAGE POINT OR MORE FOR A NUMBER OF MATURITIES FOLLOWING THE REPRICING SERIES M FIXEDRATE REVENUE REFUNDING BONDS MATURING IN 1994 YIELDED 240 WHILE THOSE MATURING IN 2008 YIELDED 555 THE LENGTHY LIST OF DERIVATIVES INCLUDED SOCALLED FLOATERS AND INVERSE FLOATERS COMPLEX SECURITIES WHOSE YIELDS CAN CHANGE FROM MONTH TO MONTH DEPENDING ON WHETHER SHORTTERM RATES RISE OR FALL THESE DERIVATIVES ARE KNOWN BY VARIOUS TRADEMARK NAMES LIKE SAVRS FOR FLOATERS AND RIBS FOR INVERSE FLOATERS UNDERWRITTEN BY LEHMAN BROTHERS TO MAKE AN INVERSE FLOATER UNDERWRITERS TAKE A REGULAR BOND ISSUE AND SPLIT IT INTO TWO PARTS HALF THE ISSUE PAYS A LOW MONEYMARKET RATE THAT FLOATS IN LINE WITH OTHER SHORTTERM INTEREST RATES THE OTHER PARTTHE INVERSE FLOATERGETS ALL THE REST OF THE BOND'S INTEREST PAYMENTS THIS MEANS THAT AS SHORTTERM RATES FALL THE INTEREST RATE ON THE FLOATER DROPS BUT THE RATE ON THE INVERSE FLOATER RISES BOND FUNDS ARE THE MAIN BUYERS OF THESE TYPES OF SECURITIES AND YESTERDAY WAS NO EXCEPTION ACCORDING TO UNDERWRITERS THE FLOATERS AND INVERSE FLOATERS SOLD BY PUERTO RICO YESTERDAY ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P SECURITIES ISSUED BY THE NOWDEFUNCT EXECUTIVE LIFE INSURANCE CO SOARED IN THE WAKE OF A COURT DECISION MONDAY THAT SET ASIDE A PLAN TO SELL THE COMPANY TO A FRENCH GROUP EXECUTIVE LIFE WAS A UNIT OF FIRST EXECUTIVE CORP THE PLAN WAS CONSIDERED UNFAVORABLE TO BONDHOLDERS BECAUSE IT CALLED FOR THE BONDS CALLED MUNICIPAL GUARANTEED INVESTMENT CONTRACTS TO BE VALUED FAR BELOW THEIR FACE AMOUNT THE SECURITIES WERE ISSUED BY EXECUTIVE LIFE IN 1986 TO GUARANTEE TAXABLE BONDS SOLD BY LOCAL AND STATE MUNICIPALITIES THE BONDS TRADED AS HIGH AS 76 YESTERDAY UP FROM 69 1/2 MONDAY TWO MONTHS AGO THE BONDS TRADED AS LOW AS 60 IN THE NEW ISSUE MARKET SINGER CO OFFERED A 150 MILLION NEW YANKEE ISSUE SINGER A LEADING MAKER OF CONSUMER SEWING MACHINES WAS ACQUIRED IN 1989 BY SEMITECH GLOBAL CO A HONG KONG CONSUMER ELECTRONICS COMPANY SEMITECH OWNS 51 OF SINGER SINGER SOLD 10YEAR NOTES PRICED AS 7 ISSUES TO YIELD 7064 OR 115 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP SECONDARY ISSUES FINISHED HIGHER HIGHGRADE CORPORATES GAINED 1/8 TO 3/8 WHILE JUNK BONDS WERE FLAT TO UP 1/8 THE RESOLUTION TRUST CORP PRICED A 7236 MILLION 12PART OFFERING OF COMMERCIAL AND MULTIFAMILY MORTGAGEBACKED SECURITIES MEANWHILE PRICES OF MORTGAGE SECURITIES ENDED WITH MODERATE GAINS GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR APRIL DELIVERY ROSE 5/32 TO 100 26/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 ISSUES INCREASED 7/32 TO 100 31/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ADVANCED 6/32 TO 100 24/32 NO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT OFFERINGS WERE ANNOUNCED THE RTC'S NEW ISSUE RTC 1993C2 CONTAINED EIGHT TRIPLEA RATED CLASSES AND FOUR SUBORDINATE CLASSES IT INCLUDED THE FIRST DOUBLEB RATED CLASS OFFERED PUBLICLY BY THE THRIFT BAILOUT AGENCY A MEANS FOR RAISING FUNDS MORE CHEAPLY THE RTC USUALLY HAS HELD THE SUBORDINATE CLASSES IN THE PAST BECAUSE IT WASN'T CONFIDENT THAT THOSE BONDS WOULD BE WELL RECEIVED 9303240035 930324 BUSINESS BRIEF CENTER BANKS INC EXDIRECTOR ALLEGES FAILURE TO CONSIDER ACQUISITION BID CENTER BANKS INC SAID A FORMER DIRECTOR SUED THE SKANEATELES NY COMPANY EARLIER THIS MONTH ALLEGING ITS BOARD FAILED TO SERIOUSLY CONSIDER AN UNSOLICITED ACQUISITION PROPOSAL BY NBT BANCORP INC IN A LETTER TO STOCKHOLDERS CENTER BANKS PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN P DRISCOLL SAID THE DIRECTORS HAVE RETAINED LEGAL COUNSEL AND EXPECT TO VIGOROUSLY DEFEND AGAINST THE ACTION THE LAWSUIT WAS FILED BY BRUCE SAMMUT FOR HIMSELF AND ON BEHALF OF CENTER BANKS SHAREHOLDERS ACCORDING TO THE LETTER MR SAMMUT SEEKS MONETARY DAMAGES AND REIMBURSEMENT FOR HIS LEGAL COSTS AND DISBURSEMENTS INCURRED IN CONNECTION WITH THE ACTIONS THE LETTER SAID CENTER BANKS SAID THE PROPOSAL BY NBT OF NORWICH NY MADE IN A LETTER DATED AUG 4 1992 CALLED FOR NBT TO EXCHANGE A COMBINATION OF CASH AND NBT STOCK EQUAL TO 11 FOR EACH SHARE OF CENTER BANKS' COMMON OUTSTANDING CENTER BANKS SHARES CLOSED YESTERDAY AT 925 DOWN 50 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9303240034 930324 TECHNOLOGY & MEDICINE US WON'T FIGHT RULING THAT SCRAPS TOXICS STANDARDS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT DECIDED NOT TO FIGHT AN APPEALS COURT RULING THAT SCRAPPED CERTAIN STANDARDS ON WORKPLACE SAFETY A MOVE THAT ALLOWS COMPANIES TO ROLL BACK PROTECTIONS ON 376 TOXIC SUBSTANCES THE DECISION WAS MADE OVER THE OBJECTIONS OF THE LABOR DEPARTMENT WHICH WANTED THE SUPREME COURT TO HEAR THE CASE THE MOVE CREATES NEW MOMENTUM FOR LEGISLATION PENDING IN BOTH HOUSES OF CONGRESS THAT WOULD SET THE HIGHER TOXICS STANDARDS INTO LAW IN JULY THE US COURT OF APPEALS IN ATLANTA RULED THAT A PACKAGE OF STANDARDS CREATED IN 1989 BY THE LABOR DEPARTMENT'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION WAS ILLEGAL THE AGENCY SAID IT ISSUED THE STANDARDS AS A PACKAGE BECAUSE IT WAS TIMECONSUMING TO ADOPT EACH RULE SEPARATELY WHILE THE APPELLATE COURT DIDN'T OBJECT TO THE SOCALLED BUNDLING IT SAID THE AGENCY HADN'T PROVIDED ENOUGH EVIDENCE TO SUPPORT EACH RULE AND THE ADMINISTRATION WAS GIVEN UNTIL MONDAY TO APPEAL THE CASE YESTERDAY'S DECISION BY THE JUSTICE DEPARTMENT MEANS THE STANDARDS REVERT TO THOSE IN EFFECT BEFORE 1989 THE EARLIER STANDARDS WHICH WERE DRAFTED IN 1968 AND ADOPTED IN 1971 BY OSHA WHEN THE AGENCY WAS ESTABLISHED DON'T INCLUDE STANDARDS FOR MANY SUBSTANCES SUCH AS CARBON MONOXIDE OSHA SAID YESTERDAY IT WOULD CONTINUE TO ENFORCE THE STANDARDS SET IN 1971 FOR 212 TOXIC SUBSTANCES BUT STANDARDS FOR AN ADDITIONAL 164 SUBSTANCES FIRST REGULATED IN 1989 ARE NO LONGER SUBJECT TO OSHA ENFORCEMENT AGENCY OFFICIALS WERE OPTIMISTIC THAT FEW EMPLOYERS WOULD ROLL BACK IMPROVED EMPLOYEE PROTECTIONS BUT THEY ADDED THAT THE AGENCY HADN'T DETERMINED WHETHER TO START DRAFTING NEW RULES FOR THE TOXINS LAWYERS ARE DIVIDED OVER HOW COMPANIES MIGHT REACT TO THE EARLIER STANDARDS GEORGE SALEM WHO WAS THE LABOR DEPARTMENT'S SOLICITOR DURING THE REAGAN ADMINISTRATION WHEN THE NEW STANDARDS WERE ISSUED CONTENDS THAT MOST COMPANIES ALREADY HAVE ACCEPTED THE STRICTER STANDARDS ONCE A COMPANY HAS UNDERTAKEN THE CONTROLS TO COMPLY IT'S RIDICULOUS TO GO BACK HE SAID I DON'T FORESEE ANY SIGNIFICANT REGRESSION BUT MARGARET SEMINARIO A SAFETY SPECIALIST WITH THE AFLCIO DISAGREED SHE SAID MANY COMPANIES HAVEN'T YET COMPLIED WITH THE 1989 RULES BECAUSE THERE WAS A FIVEYEAR PHASEIN PERIOD OSHA HAS OBVIOUSLY UNDER ITS CURRENT LAW AND PRACTICE A VERY TOUGH TIME REGULATING TOXIC EXPOSURES IN THE WORKPLACE EXCEPT ON A CASEBYCASE BASIS SHE SAID THE SITUATION WE'RE IN MAKES IT VERY CLEAR WE NEED TO CHANGE THE LAW SCOTT RAILTON A MANAGEMENT ATTORNEY IN WASHINGTON SAID HE WOULD URGE CLIENTS TO STRESS WORKER SAFETY DESPITE THE DECISION I WOULD RECOMMEND A COURSE NOT FOR OSHA COMPLIANCE BUT FOR THE HEALTH AND SAFETY OF EMPLOYEES HE SAID HE ADDED THAT OSHA COULD USE A GENERAL DUTY CLAUSE TO PENALIZE COMPANIES WHO AREN'T PROVIDING ADEQUATE WORKER SAFETY LEGISLATION ALREADY PENDING IN CONGRESS WOULD PUT IN PLACE ALL THE STANDARDS VOIDED BY THE APPEALS COURT RULING IN ADDITION THE LEGISLATION WOULD REQUIRE OSHA TO UPDATE ITS REGULATIONS ON TOXIC SUBSTANCES EVERY THREE YEARS HEARINGS ON THE BILLS HAVE BEEN SET FOR LATEAPRIL INDEED CONGRESSIONAL LEADERS WERE QUICK TO URGE PASSAGE OF THE BILL WE DESPERATELY NEED THE MINIMAL PROTECTIONS PROVIDED BY THE AIRCONTAMINANTS STANDARD ASSERTED SEN HOWARD METZENBAUM D OHIO CHAIRMAN OF THE LABOR SUBCOMMITTEE BUT IT COULD TAKE DECADES FOR OSHA TO MEET THE STANDARDS INSTEAD HE SAID CONGRESS MUST PUSH FORWARD WITH A LEGISLATIVE SOLUTION 9303240033 930324 FOREIGN EXCHANGE YEN HITS ANOTHER HIGH AGAINST DOLLAR AS INVESTOR DEMAND REMAINS STRONG BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS PUSHED THE YEN TO ANOTHER HISTORIC HIGH AGAINST THE DOLLAR BUT SCRAMBLED TO COVER THEIR POSITIONS AND THE US CURRENCY LATER REBOUNDED AGAINST EUROPEAN CURRENCIES THE DOLLAR WAS MIXED AS THE MARK GAINED BROADLY ON THE LATEST SIGN THAT GERMAN INTEREST RATES AREN'T COMING DOWN AS FAST AS MANY PLAYERS HAD HOPED LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16305 MARKS OFF FROM 16380 MARKS LATE MONDAY IN NEW YORK STERLING WAS TRADING AT 14840 DOWN FROM 14870 THE US CURRENCY ALSO WAS CHANGING HANDS AT 11595 YEN UP FROM 11563 YEN ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16314 MARKS AND AT 11577 YEN THE DOLLAR FELL TO A POSTWORLD WAR II LOW OF 11510 YEN EARLY YESTERDAY BEFORE PLAYERS FEARFUL OF CENTRALBANK INTERVENTION PULLED BACK THE DOLLAR'S PREVIOUS LOW WAS SET MONDAY AT 11538 YEN DEALERS SAID THERE WAS LITTLE ECONOMIC JUSTIFICATION FOR SUCH STRENGTH GIVEN JAPAN'S TROUBLED ECONOMY AND EXTREMELY LOW INTEREST RATES BUT SAID DEMAND FOR THE CURRENCY WAS STEADY ANYWAY FOR THE TIME BEING YOU CAN'T FIGHT THE STRONG TREND SAID ANGELO EVANGELISTA A VICE PRESIDENT AT BANK OF BOSTON YESTERDAY'S GAINS WERE MAINLY A CONTINUATION OF MONDAY'S SPECULATIVE FIRMING TREND FOR THE YEN DEALERS SAID BUT JAPANESE OFFICIALS TURNED UP THE HEAT ADDING TO FEARS THAT CENTRAL BANKS MIGHT STEP IN TO SUPPORT THE DOLLAR FINANCE MINISTER YOSHIRO HAYASHI CALLED THE RECENT MOVE SPECULATIVE AND THREATENED APPROPRIATE ACTION IF IT LASTS TOO LONG THE VEILED THREAT OF INTERVENTION ENCOURAGED ALREADYSKITTISH SPECULATORS TO COVER THEIR BETS ON FURTHER YEN GAINS BY BUYING BACK DOLLARS DEALERS SAID LATER US TREASURY UNDERSECRETARYDESIGNATE LAWRENCE SUMMERS GAVE DOLLAR BUYERS FURTHER INCENTIVE BY SAYING THAT THE GROUP OF SEVEN MAJOR INDUSTRIALIZED NATIONS ARE LOOKING AT CURRENCY RATES BASED ON ECONOMIC FUNDAMENTALS DEALERS SAID THIS COMMENT SEEMED TO DULL SPECULATION THAT THE G7 WOULD ENDORSE A STRONGER YEN AS A WAY TO REDUCE JAPAN'S TRADE SURPLUS TALK THAT HAS PUSHED THE YEN SHARPLY HIGHER IN THE PAST SEVERAL WEEKS G7 NATIONS INCLUDE THE US JAPAN BRITAIN WEST GERMANY FRANCE ITALY AND CANADA SIMON FISCHER A VICE PRESIDENT AT SWISS BANK CORP SAID MR SUMMERS'S COMMENTS CARRIED THE DOLLAR TOWARD 11600 YEN BUT HE NOTED THAT A SUBSEQUENT STATEMENT FROM PRESIDENT CLINTON IN WHICH HE TOOK A HARD LINE ON THE TRADE ISSUE SLIGHTLY DAMPED INTEREST IN THE DOLLAR THE YEN SLIPPED FURTHER AGAINST THE MARK AS THE GERMAN CURRENCY'S BROAD STRENGTH ACCELERATED PROFITTAKING AMONG PLAYERS WHO HAD BET ON FURTHER YEN GAINS LATE IN NEW YORK THE MARK WAS QUOTED AT 71113 YEN UP FROM 70592 YEN MONDAY THE MARK GAINED AFTER THE BUNDESBANK DISAPPOINTED INVESTORS' HOPES OF A CUT IN MONEY MARKET RATES THIS WEEK THE CENTRAL BANK CALLED FOR TENDERS FOR ITS WEEKLY REPURCHASE OPERATION AND DEALERS INTERPRETED THE TERMS AS A SIGN RATES WON'T BE COMING DOWN SIGNIFICANTLY THE MOVE CAUSED GERMAN MARKET RATES TO CLIMB FURTHER STRENGTHENING THE MARK THE MARKET'S BEEN LEANING HEAVILY TOWARD LOWER GERMAN RATES SAID JOSEPH VOLPICELLA FOREIGN EXCHANGE MANAGER AT WESTPAC BANKING CORP THE BUNDESBANK DROPPED ITS DISCOUNT RATE TO 75 FROM 80 LAST THURSDAY 9303240032 930324 SEC'S BREEDEN WARNS OF STAFFING REDUCTIONS DUE TO CLINTON BUDGET WASHINGTON SECURITIES AND EXCHANGE COMMISSION CHAIRMAN RICHARD BREEDEN SAID PRESIDENT CLINTON'S COMING BUDGET WILL FORCE THE SEC TO LAY OFF ENFORCEMENT PEOPLE TO HIRE MUTUAL FUND EXAMINERS THE DEPARTING CHAIRMAN TOLD A HOUSE APPROPRIATIONS SUBCOMMITTEE THAT THE AGENCY'S MUTUAL FUND EXAMINATION CAPABILITY HAS BEEN OUTSTRIPPED BY THE EXPLOSIVE GROWTH IN MUTUAL FUNDS IN RECENT YEARS HE SAID THE SEC'S WORKLOAD HAS SKYROCKETED IN ALMOST EVERY AREA BUT THAT THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET DETERMINED THAT IT SHOULD HAVE 110 FEWER POSITIONS THAN IT REQUESTED FOR FISCAL YEAR 1994 WHICH STARTS OCT 1 MR BREEDEN ALSO WARNED THAT THE SEC'S INCREASING RELIANCE ON USER FEES IS NOT WITHOUT RISKS HE SAID HE WAS ADVISED THAT THE CLINTON BUDGET WILL REQUEST AN INCREASE IN THE REGISTRATION FEE RATE TO 1/24TH OF 1 FROM 1/32ND BASED ON THE LEVEL OF OFFERINGS FOR FIRST QUARTER OF 1993 HE SAID THIS PROPOSED FEE INCREASE WOULD GENERATE 142 MILLION IN ADDITIONAL REVENUE OF WHICH ONLY 21 MILLION OR ABOUT 15 WOULD GO TO THE SEC HE SAID THE REST WOULD GO TO GENERAL GOVERNMENT PURPOSES AND REPEATEDLY CITED FISH FARMS AS AN EXAMPLE 9303240031 930324 BUSINESS BRIEFS BOWNE & CO A FINANCIAL PRINTER OPENED AN OFFICE IN HONG KONG AND ACQUIRED A 25 INTEREST IN SPEEDFLEX ASIA LTD A PRIVATELY HELD TYPESETTING FIRM NOISE CANCELLATION TECHNOLOGIES INC SIGNED A 30 MILLION FIVEYEAR AGREEMENT WITH FEDERAL SIGNAL CORP TO SUPPLY SIRENNOISE CANCELING HEADSETS AND OTHER PRODUCTS FEDERAL SIGNAL MAKES EMERGENCY VEHICLES SIRENS AND OTHER EQUIPMENT FOR POLICE FIRE AND OTHER EMERGENCY SERVICES JANSKO INC AN OFFICE FURNITURE MAKER PURCHASED ALLAMERICAN FREIGHT SYSTEMS INC A CLOSELY HELD TRUCKING COMPANY IN JUPITER FLA TERMS WEREN'T DISCLOSED HARRIS CORP CREATED A JOINT VENTURE IN SHENZHEN CHINA TO MAKE DIGITAL MICROWAVE RADIOS FOR SALE IN CHINA TERMS WEREN'T DISCLOSED MOBIL CORP SAID ITS UNITS SOLD CERTAIN LIQUEFIED PETROLEUM GAS INTERESTS FOR 268 MILLION TIMKEN CO'S BRITISH SUBSIDIARY WILL CLOSE ITS DAVENTRY BEARING PLANT CUTTING AS MANY AS 120 WORKERS THE PLANT IS EXPECTED TO CLOSE IN 15 MONTHS RELIFE INC OPERATOR OF MEDICAL REHABILITATION CENTERS SIGNED A LETTER OF INTENT TO BUY REBOUND INC AN OPERATOR OF REHABILITATION FACILITIES BASED IN NASHVILLE TENN TERMS WEREN'T DISCLOSED 9303240030 930324 IBM SEEMS LIKELY TO PICK RJR'S GERSTNER AS ITS CEO PROBABLE CHOICE IS THOUGHT TO BE TEXTBOOK MANAGER WHO'D CUT FAT QUICKLY BY MICHAEL W MILLER AND LAURENCE HOOPER STAFF REPORTERS OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP IS PREPARING TO NAME LOUIS V GERSTNER ITS NEW CHIEF EXECUTIVE OFFICER AND PLANS A PUBLIC ANNOUNCEMENT EARLY NEXT WEEK OFFICIALS FAMILIAR WITH IBM'S SECRETIVE EXECUTIVE SEARCH CAUTIONED THAT THE TROUBLED COMPUTER GIANT MAY NOT HAVE REACHED A FINAL AGREEMENT WITH MR GERSTNER AND WARNED THAT BOTH THE SELECTION AND THE TIMING COULD CHANGE AT THE LAST MINUTE BUT IBM IS KNOWN TO HAVE RETAINED THE BURSONMARSTELLER PUBLIC RELATIONS FIRM TO FINE TUNE THE DETAILS OF THE CEO ANNOUNCEMENT SOURCES CLOSE TO THE SEARCH INDICATED IBM IS HOPING TO ANNOUNCE ITS NEW CHIEF EXECUTIVE NEXT WEEK IBM'S BOARD IS SCHEDULED TO MEET AT THE COMPANY'S ARMONK NY HEADQUARTERS TUESDAY SOME IBM INSIDERS SAID THE BOARD WOULDN'T EVEN HAVE TO WAIT UNTIL ITS OFFICIAL MEETING IF IT REACHES A FIRM AGREEMENT WITH MR GERSTNER BEFORE THEN IBM OFFICIALS REFUSED TO COMMENT MR GERSTNER THE CHAIRMAN OF RJR NABISCO HOLDINGS CORP WAS AT A CORPORATE GOLF TOURNAMENT IN SOUTHERN CALIFORNIA YESTERDAY AND DIDN'T RETURN CALLS SEEKING COMMENT THE SELECTION OF THE 50YEAROLD MR GERSTNER WOULD CULMINATE THE MOST HIGHSTAKES CONTEST IN CORPORATE HISTORY WITH A CONTROVERSIAL CHOICE IBM SUFFERING DESPERATELY FROM MISREADING BREAKNECK CHANGES IN HIGH TECHNOLOGY WOULD BE HANDING ITS FUTURE TO AN EXECUTIVE WITH SUPERB MANAGEMENT CREDENTIALS BUT NO COMPUTERINDUSTRY EXPERIENCE CHOOSING MR GERSTNER WOULD AMOUNT TO A DECISION THAT IBM'S DEEP PROBLEMS CAN BE SOLVED BY BETTER MANAGEMENT NOT A RADICAL NEW VISION FOR IBM'S TECHNOLOGY MR GERSTNER A FORMER MCKINSEY & CO CONSULTANT AND AMERICAN EXPRESS CO PRESIDENT IS CONSIDERED A TEXTBOOK MANAGER WHO WOULD QUICKLY CUT IBM'S FAT SHARPEN UP ITS FINANCIAL CONTROLS AND SHAKE UP ITS BADLY ENTRENCHED CORPORATE CULTURE ONE PLAUSIBLE SCENARIO WOULD HAVE IBM TAPPING RICHARD GERSTNER TO TAKE A PROMINENT ROLE FORMAL OR INFORMAL HELPING HIS BROTHER RUN THE COMPANY IBM LAUNCHED ITS EXTRAORDINARY SEARCH IN JANUARY AFTER ANNOUNCING A HIGHLEVEL BLOODLETTING THAT CLAIMED CHAIRMAN AND CHIEF EXECUTIVE JOHN AKERS AND HIS TOP TWO LIEUTENANTS AT THE TIME IBM SAID IT WOULD PICK A NEW CEO BUT DIDN'T SPECIFY WHETHER MR AKERS WOULD ALSO GIVE UP THE CHAIRMAN'S POST IT'S STILL UNCLEAR WHETHER MR GERSTNER WOULD RECEIVE BOTH THE CHAIRMAN AND CEO TITLES MANY IN THE INDUSTRY ASSUME IBM'S NEW CEO WOULDN'T TAKE THE JOB IF HE HAD TO REPORT TO MR AKERS OR ANOTHER CHAIRMAN HOWEVER MR GERSTNER AND MR AKERS ARE LONGTIME ACQUAINTANCES BOTH SIT ON THE NEW YORK TIMES CO BOARD AND SERVED TOGETHER ON A BUSH ADMINISTRATION PANEL ON EDUCATION IBM DIRECTORS ARE KNOWN TO BE WORRIED THAT SELECTING A NEWCOMER TO THE COMPUTER INDUSTRY COULD BADLY DEMORALIZE IBM'S EMPLOYEES PARTICULARLY ITS AMBITIOUS TOP EXECUTIVES THE COMPANY MAY HAND OUT ONE OR TWO CONSOLATION PRIZES TO TOP IBM INSIDERS AND SIGNAL THAT IT SERIOUSLY CONSIDERED INSIDE CANDIDATES FOR THE TOP JOB MR GERSTNER WOULD ALSO BE EXPECTED TO IMPORT HIS OWN EXECUTIVE TEAM TO IBM ALREADY IBM IS BELIEVED TO HAVE BEGUN LINING UP PROSPECTS FOR A NEW CHIEF FINANCIAL OFFICER TO PRESENT TO ITS NEW CEO INDUSTRY SOURCES SAY A FEELER HAS ALREADY GONE OUT TO KARL VON DER HEYDEN MR GERSTNER'S TOP FINANCIAL EXECUTIVE AT RJR MR GERSTNER WOULD INHERIT ONE OF THE WORLD'S GREAT CORPORATE ICONS THAT HAS FALLEN FROM GRACE WITH DEVASTATING SPEED LONG ACCUSTOMED TO SPECTACULAR PROFITS FROM MAINFRAME COMPUTERS IT HAS SEEN THAT GOLDMINE PULVERIZED BY THE PERSONALCOMPUTER REVOLUTION IBM HAS POSTED MASSIVE LOSSES FOR THE PAST TWO YEARS SLASHED ITS VAUNTED DIVIDEND SEEN ITS STOCKMARKET VALUE LOSE 75 BILLION FROM ITS 1987 PEAK AND SLASHED MORE THAN 100000 JOBS MR AKERS TRIED TO RESPOND TO THE INDUSTRY'S NEW RULES WITH A PERESTROIKA STRATEGY OF BREAKING IBM INTO A DOZEN QUASIAUTONOMOUS BABY BLUES THE CHOICE OF MR GERSTNER A SEASONED DEALMAKER AND ASSET PEDDLER WOULD BE WIDELY SEEN AS A MOVE TO ACCELERATE THAT PROCESS SOME INDUSTRY EXECUTIVES EVEN SPECULATE ABOUT A ROLE AT IBM FOR MR GERSTNER'S CURRENT BOSS HENRY KRAVIS FOUNDING PARTNER OF THE KOHLBERG KRAVIS ROBERTS & CO FINANCIAL GIANT PERHAPS AS A BUYER OF ONE OR MORE BABY BLUES ANOTHER LEVERAGED BUYOUT FIRM CLAYTON DUBILIER & RICE HAS HAD SUCCESS WITH IBM'S TYPEWRITER AND PC PRINTER BUSINESS WHICH IT BOUGHT TWO YEARS AGO MR GERSTNER WOULD BE LEAVING RJR AMID AN UNFINISHED TURNAROUND EFFORT A MOVE THAT COULD DISCOMFIT THE POWERFUL FINANCIAL FIRM THAT CONTROLS THE TOBACCO AND FOOD GIANT KOHLBERG KRAVIS ROBERTS & CO BUT LATE LAST NIGHT KKR FOUNDING PARTNER HENRY KRAVIS SAID THROUGH A SPOKESPERSON WHETHER LOU STAYS AT RJR OR TAKES A TRULY UNIQUE OPPORTUNITY LIKE THE IBM POSITION HE IS HELD IN HIGH REGARD BY EVERYONE AT KKR IBM IS KNOWN TO HAVE CONSIDERED SEVERAL OF THE COMPUTER INDUSTRY'S TOP GURUS FOR THE JOB INCLUDING MOTOROLA INC'S CHIEF EXECUTIVE GEORGE FISHER AND APPLE COMPUTER INC'S CHAIRMAN JOHN SCULLEY THE SEARCH HAD A PUBLICIMAGE PROBLEM THIS MONTH WHEN BOTH MEN ALONG WITH ALLIEDSIGNAL INC CHAIRMAN LAWRENCE BOSSIDY AND RETIRED HEWLETTPACKARD CO CHAIRMAN JOHN YOUNG ALL PUBLICLY DECLARED THEY WEREN'T INTERESTED IN RUNNING IBM OTHER PEOPLE KNOWN TO BE IN THE RUNNING INCLUDED MORTON MEYERSON CHAIRMAN OF PEROT SYSTEMS INC AND PAUL STERN CHAIRMAN OF NORTHERN TELECOM LTD THE IBM BOARD'S SEARCH COMMITTEE CHAIRED BY RETIRED JOHNSON & JOHNSON CHAIRMAN JAMES BURKE ALSO TALKED TO NUMEROUS OTHER TOP EXECUTIVES INCLUDING INTEL CORP'S ANDREW GROVE NCR CORP'S GIL WILLIAMSON AND GEORGE CONRADES A RETIRED IBM SENIOR MARKETER MR GERSTNER DOES HAVE SOME FAMILIARITY WITH IBM AND THE COMPUTER INDUSTRY HE WAS CLOSELY INVOLVED WITH TECHNOLOGY STRATEGY AT AMERICAN EXPRESS ONE OF THE CORPORATE WORLD'S MOST ADVANCED COMPUTER USERS AND MR GERSTNER'S BROTHER RICHARD HAD A LONG FASTTRACK CAREER AT IBM RUNNING ITS PERSONALCOMPUTER BUSINESS AND ITS HUGE ASIAN OPERATIONS HE RECENTLY RETIRED FOR HEALTH REASONS IT'D BE AN IRONY IF A GERSTNER RUNS IBM AND IT'S NOT DICK SAID ONE RETIRED IBM EXECUTIVE ONE PLAUSIBLE SCENARIO WOULD HAVE IBM TAPPING RICHARD GERSTNER TO TAKE A PROMINENT ROLE FORMAL OR INFORMAL HELPING HIS BROTHER RUN THE COMPANY IBM LAUNCHED ITS EXTRAORDINARY SEARCH IN JANUARY AFTER ANNOUNCING A HIGHLEVEL BLOODLETTING THAT CLAIMED CHAIRMAN AND CHIEF EXECUTIVE JOHN AKERS AND HIS TOP TWO LIEUTENANTS AT THE TIME IBM SAID IT WOULD PICK A NEW CEO BUT DIDN'T SPECIFY WHETHER MR AKERS WOULD ALSO GIVE UP THE CHAIRMAN'S POST IT'S STILL UNCLEAR WHETHER MR GERSTNER WOULD RECEIVE BOTH THE CHAIRMAN AND CEO TITLES MANY IN THE INDUSTRY ASSUME IBM'S NEW CEO WOULDN'T TAKE THE JOB IF HE HAD TO REPORT TO MR AKERS OR ANOTHER CHAIRMAN HOWEVER MR GERSTNER AND MR AKERS ARE LONGTIME ACQUAINTANCES BOTH SIT ON THE NEW YORK TIMES CO BOARD AND SERVED TOGETHER ON A BUSH ADMINISTRATION PANEL ON EDUCATION IBM DIRECTORS ARE KNOWN TO BE WORRIED THAT SELECTING A NEWCOMER TO THE COMPUTER INDUSTRY COULD BADLY DEMORALIZE IBM'S EMPLOYEES PARTICULARLY ITS AMBITIOUS TOP EXECUTIVES THE COMPANY MAY HAND OUT ONE OR TWO CONSOLATION PRIZES TO TOP IBM INSIDERS AND SIGNAL THAT IT SERIOUSLY CONSIDERED INSIDE CANDIDATES FOR THE TOP JOB MR GERSTNER WOULD ALSO BE EXPECTED TO IMPORT HIS OWN EXECUTIVE TEAM TO IBM ALREADY IBM IS BELIEVED TO HAVE BEGUN LINING UP PROSPECTS FOR A NEW CHIEF FINANCIAL OFFICER TO PRESENT TO ITS NEW CEO INDUSTRY SOURCES SAY A FEELER HAS ALREADY GONE OUT TO KARL VON DER HEYDEN MR GERSTNER'S TOP FINANCIAL EXECUTIVE AT RJR MR GERSTNER WOULD INHERIT ONE OF THE WORLD'S GREAT CORPORATE ICONS THAT HAS FALLEN FROM GRACE WITH DEVASTATING SPEED LONG ACCUSTOMED TO SPECTACULAR PROFITS FROM MAINFRAME COMPUTERS IT HAS SEEN THAT GOLDMINE PULVERIZED BY THE PERSONALCOMPUTER REVOLUTION IBM HAS POSTED MASSIVE LOSSES FOR THE PAST TWO YEARS SLASHED ITS VAUNTED DIVIDEND SEEN ITS STOCKMARKET VALUE LOSE 75 BILLION FROM ITS 1987 PEAK AND SLASHED MORE THAN 100000 JOBS MR AKERS TRIED TO RESPOND TO THE INDUSTRY'S NEW RULES WITH A PERESTROIKA STRATEGY OF BREAKING IBM INTO A DOZEN QUASIAUTONOMOUS BABY BLUES THE CHOICE OF MR GERSTNER A SEASONED DEALMAKER AND ASSET PEDDLER WOULD BE WIDELY SEEN AS A MOVE TO ACCELERATE THAT PROCESS SOME INDUSTRY EXECUTIVES EVEN SPECULATE ABOUT A ROLE AT IBM FOR MR GERSTNER'S CURRENT BOSS HENRY KRAVIS FOUNDING PARTNER OF THE KOHLBERG KRAVIS ROBERTS & CO FINANCIAL GIANT PERHAPS AS A BUYER OF ONE OR MORE BABY BLUES ANOTHER LEVERAGED BUYOUT FIRM CLAYTON DUBILIER & RICE HAS HAD SUCCESS WITH IBM'S TYPEWRITER AND PC PRINTER BUSINESS WHICH IT BOUGHT TWO YEARS AGO 9303240029 930324 LEISURE & ARTS BOOKSHELF A LIBERAL FINDS FRANKLIN'S FLAWS BY RON CHERNOW IN FDR INTO THE STORM 19371940 RANDOM HOUSE 691 PAGES 35 THE FOURTH VOLUME OF KENNETH S DAVIS'S RICH BUT PROLIX SAGA OF FRANKLIN D ROOSEVELT THE READER WON'T ENCOUNTER THE GENIAL SUN GOD WHO PIERCED THE DEPRESSION GLOOM OF 1933 AT THE VERY LEAST THE SUN GOD IS NOW FRAMED BY A DARK CORONA DESPITE THE ULTRALIBERAL BENT OF THIS TOME THE ROOSEVELT ON DISPLAY BEARS MORE THAN A PASSING RESEMBLANCE TO THE GLIB SMILING MOUNTEBANK AND WOULDBE DICTATOR OF LIBERTY LEAGUE DEMONOLOGY THIS HIGHLY CONTROVERSIAL PORTRAIT IS DRAWN WITH CONVICTION MR DAVIS SPIES THE GLINT OF MISCHIEF EVEN MALICE BEHIND THE FAMOUS GRIN AN ARCH PRANKSTER ROOSEVELT DELIGHTED IN TWEAKING OPPONENTS AND CONFOUNDING AIDES ALIKE NO ADMIRER OF HIS CHARMING GUILE MR DAVIS SEES FDR AS A VETERAN OBFUSCATOR WHO OFTEN RESORTED TO DECEPTION WHEN CANDOR WOULD HAVE SERVED HIM BETTER THAT SUCH A CRITIQUE COMES FROM A FRANK NEW DEAL PARTISAN MAKES THE PORTRAIT MORE COMPELLING IN THIS CLASSIC TALE OF POLITICAL HUBRIS FDR'S 1936 ELECTION VICTORY REMOVED THE INHIBITIONS ON HIS DEVIOUS SIDE LEADING STRAIGHT TO THE COURTPACKING DISASTER WITH PERVERSE SECRECY HE HATCHED A PLAN TO ADD UP TO SIX NEW JUSTICES TO THE SUPREME COURT THINLY CLOAKING IT AS A SWEEPING REORGANIZATION OF THE FEDERAL JUDICIARY ULTIMATELY THE PUBLIC JUDGED THAT FDR'S CREDO OF BOLD PERSISTENT EXPERIMENTATION WOULDN'T INCLUDE REPEAL OF THE SEPARATION OF POWERS IN MR DAVIS'S VIEW THE SUPREME COURT FIASCO UNDERMINED ROOSEVELT PROMPTING A FAILURE OF NERVE AS HE ADVANCED HIS NEW DEAL AGENDA AND COUNTERED FASCISM ABROAD THE EPISODE EFFECTIVELY ENDED THE NEW DEAL AS A REFORMING TRANSFORMING SOCIAL FORCE THE RIGHTWARD SHIFT IN THE 1938 ELECTIONS MANIFESTED A GROWING PUBLIC DISTRUST THAT COWED THE DARING VISIONARY OF 1933 CREATING A TIMID CRAVEN PRESIDENT WHO TRUCKLED TO PUBLIC OPINION INSTEAD OF MOLDING IT A MAJOR QUESTION MEANWHILE HAUNTED THE ADMINISTRATION DID THE NEW DEAL REPRESENT A TEMPORARY EMERGENCY PROGRAM HASTILY IMPROVISED TO STEM THE DEPRESSION OR AN IRREVOCABLE TRANSFORMATION OF AMERICAN POLITICS AND CAPITALISM EVEN WHEN CONFRONTED WITH A SEVERE ECONOMIC DIP IN 1937 ROOSEVELT RESISTED MARRINER ECCLES'S APPEALS FOR FISCAL STIMULUS AND FAVORED THE BUDGETBALANCING ORTHODOXY OF HENRY MORGENTHAU MR DAVIS SHOWS ROOSEVELT'S PROFOUND DISCOMFORT IN REVERTING TO PUMPPRIMING IF HE THEN TURNED TO THE TRUSTBUSTING CROWD NOT THE DISCREDITED PLANNERS OF 1933 IT MAY HAVE BEEN TO APPLY A POPULIST VENEER TO A CONSERVATIVE SHIFT AS MR DAVIS SHOWS THE CENTRAL TRAGEDY OF THIS PERIOD AROSE FROM ROOSEVELT'S NEED TO PLACATE ISOLATIONISTS AND SALVAGE HIS IMPERILED DOMESTIC PROGRAM THE CHIEF STRENGTH OF THE OPPOSITION TO HIS FOREIGN POLICY CAME FROM THE SOURCES HE COUNTED UPON TO UPHOLD HIS DOMESTIC MEASURES WITH 11 MILLION PEOPLE STILL JOBLESS IN 1938 ROOSEVELT HAD LITTLE ROOM TO MANEUVER ABROAD AFRAID TO STIR UP THE CATHOLIC CHURCH HE WITHHELD CRITICAL SUPPORT FOR THE SPANISH LOYALISTS AND EVEN AFTER KRISTALLNACHT WOULDN'T ABSORB MORE GERMANJEWISH REFUGEES NOT ALWAYS TERRIBLY SYMPATHETIC TO ROOSEVELT'S PREDICAMENT MR DAVIS BLAMES HIS TEMPORIZING FOR EMBOLDENING THE AXIS POWERS AFTER MUNICH AND ADDUCES MANY OTHER INSTANCES OF MORAL COWARDICE AN HONEST AGGRESSIVE PRESIDENT HE INSISTS COULD HAVE MOBILIZED PUBLIC OPINION FOR FOREIGN ACTIVISM IF ROOSEVELT FOR INSTANCE HAD OPENLY ADVOCATED REPEAL OF THE ARMS EMBARGO TO AID BRITAIN AND FRANCE INSTEAD OF TURNING TO MEALYMOUTHED TRICKERY HE COULD HAVE CARRIED THE DAY ONE IS HALFSEDUCED BY THE ARGUMENT'S IDEALISM EVEN AS ONE SUSPECTS ITS NAIVETE COULD ROOSEVELT A VIRTUOSO OF CROWD PSYCHOLOGY HAVE SO PERSISTENTLY MISREAD THE POPULAR MOOD MR DAVIS CITES POLL DATA SHOWING A MORE INTERNATIONALIST BENT AMONG THE ELECTORATE THAN ITS LEADERS YET HE ALSO SHOWS ISOLATIONIST LEADERS IN CONGRESS AS A BULLHEADED UNYIELDING CREW EVEN IN THE 1940 ELECTION WITH NAZIS GOOSESTEPPING TO WORLD MASTERY ROOSEVELT HAD TO REASSURE AMERICA'S MOTHERS THAT THEIR SONS IF CONSCRIPTED WOULD BE WELL FED AND HOUSED AND NEVER SENT INTO BATTLE AS IF THE ARMY WERE A SUMMER CAMP THIS IS AN INTRIGUING BUT FINALLY EXASPERATING HISTORY MR DAVIS NARRATES HIS TALE WITH FLUENCY AND BRIO AND BETRAYS A FINE NOVELISTIC SENSE OF CHARACTER HE IS ESPECIALLY ASTUTE ON ROOSEVELT'S RELATIONS WITH HARRY HOPKINS AND OTHER NEW DEAL FIGURES YET THE WRITING IS FREQUENTLY SELFINDULGENT TIRING THE READER WITH TRITE EXTENDED METAPHORS ABOUT DARKENING SKIES RUSHING RIVERS ETC MANY DIGRESSIONS EG EIGHT PAGES ALONE ON THE BACKGROUND PHYSICS OF THE ATOM BOMB CLOT THE NARRATIVE HAVING DECLARED A PERSONAL MORATORIUM ON ORIGINAL RESEARCH NO ARCHIVAL WORK NO INTERVIEWS MR DAVIS RELIES ON BIOGRAPHIES DIARIES AND ROOSEVELT'S PUBLIC PAPERS ROBBING THE BOOK OF FRESHNESS AND SUSPENSE LARDING HIS STORY WITH CAMPAIGN SPEECHES HE DEVOTES UNDUE SPACE TO THE POLITICAL SURFACE IN STEERING US AWAY FROM HAGIOGRAPHY MR DAVIS HAS PERFORMED YEOMAN'S SERVICE AS HE TAKES A SEARCHING MORAL INVENTORY OF HIS SUBJECT BUT HIS SUBTLE PROBING OF ROOSEVELT'S PERSONALITY ISN'T MATCHED BY SENSITIVE ANALYSIS OF NEW DEAL DOMESTIC POLICY AND HE LAPSES INTO MUCKRAKING CARTOONS OF THE PEOPLE VS PROPERTY BUSINESSMEN ARE ALWAYS RUTHLESSLY ACQUISITIVE REPUBLICAN LEGISLATORS THEIR HAPLESS STOOGES IT NEVER DAWNS ON MR DAVIS THAT BUSINESSMEN MIGHT HAVE BEEN GENUINELY VEXED BY THE SAME DEVIOUS VACILLATING ROOSEVELT HE PRESENTS THOUGH HE ATTACKS SHARPLY FROM THE LEFT HE NEVER PROBES THE CURIOUS FACT THAT HIS SLY SLIPPERY ACCOUNT MIRRORS MUCH ANTIROOSEVELT PROPAGANDA MR DAVIS BELIEVES THAT ROOSEVELT BUNGLED THE NEW DEAL IN BOTH ITS NATIONAL PLANNING AND TRUSTBUSTING PHASES OPENING THE WAY FOR BIGBUSINESS DOMINATION AND TECHNOLOGICAL TYRANNY AN INEPT PRESIDENT BOTCHED HIS OWN SUBSTANTIAL LEGACY IN THE END THIS HISTORY OFFERS A LIVELY DIALOGUE ACROSS THE GENERATIONS BETWEEN AN IDEALISTIC DISGRUNTLED HISTORIAN AND AN EMINENTLY PRACTICAL POLITICIAN WHO KNEW HOW TO COUNT THE VOTES MR CHERNOW IS AUTHOR OF THE HOUSE OF MORGAN HIS HISTORY OF THE GERMANJEWISH WARBURG BANKING FAMILY WILL BE PUBLISHED BY RANDOM HOUSE IN THE FALL 9303240028 930324 PACIFIC LUMBER TO REDEEM DEBT HOUSTON MAXXAM INC SAID ITS PACIFIC LUMBER CO UNIT WILL SPEND 5303 MILLION TO REDEEM ALL OF ITS 12 SERIES A SENIOR NOTES 122 SERIES B SENIOR NOTES AND 125 SENIOR SUBORDINATED DEBENTURES ON APRIL 7 THE REDEMPTION PRICE FOR THE SERIES A AND B NOTES IS 1017 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE DEBENTURE PRICE IS 1018 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST MAXXAM SAID THE REDEMPTION WILL BE FUNDED BY PROCEEDS FROM THE RECENTLY COMPETED SALE OF 235 MILLION OF SENIOR NOTES BY PACIFIC LUMBER AND THE SALE OF 385 MILLION OF TIMBERCOLLATERALIZED NOTES BY PACIFIC LUMBER'S SCOTIA PACIFIC HOLDING CO UNIT 9303240027 930324 ADMINISTRATIVE JUDGE OF SEC RECOMMENDS BARRING STUARTJAMES NEW YORK A SECURITIES AND EXCHANGE COMMISSION ADMINISTRATIVE LAW JUDGE HAS RECOMMENDED A PERMANENT BAR AGAINST DEFUNCT STUARTJAMES CO ONCE THE LARGEST PENNYSTOCK BROKER IN THE US FOR CHARGING CUSTOMERS EXCESSIVE FEES IN A SCHEME HE DESCRIBED AS SECURITIES FRAUD OF MAJOR PROPORTIONS ADMINISTRATIVE LAW JUDGE MAX O REGENSTEINER RECOMMENDED THAT FORMER STUARTJAMES OWNERS C JAMES PADGETT AND STUART GRAFF BE BARRED FOR LIFE FROM THE SECURITIES INDUSTRY AND THAT THE DEFUNCT FIRM BE PREVENTED FROM REENTERING THE INDUSTRY THE JUDGE ALSO RECOMMENDED TEMPORARY SUSPENSIONS FOR TWO FORMER REGIONAL VICE PRESIDENTS AND SEVEN BRANCH MANAGERS OF THE FORMER ENGLEWOOD COLO FIRM ATTORNEYS FOR MESSRS PADGETT AND GRAFF AND THE FIRM WHICH IS NOW BEING ADMINISTERED BY A BANKRUPTCY TRUSTEE SAID THEY PLAN TO APPEAL THE DECISION THE SANCTIONS AGAINST THEM COULD BE SUSPENDED FOR YEARS UNTIL THEY EXHAUST THEIR APPEALS THE JUDGE'S 218PAGE OPINION FOLLOWS ONE OF THE SEC'S MOST HOTLY CONTESTED AND LONGESTRUNNING PENNYSTOCK TRIALS WHICH RAN INTERMITTENTLY FROM OCTOBER 1989 TO MAY 1992 SEC ATTORNEYS CALL THE DECISION SIGNIFICANT BECAUSE IT UNDERSCORES REGULATORS' DETERMINATION TO PURSUE PENNYSTOCK VIOLATORS WHO MOUNT VIGOROUS LEGAL CHALLENGES MANY BROKERS CHARGED WITH PENNYSTOCK VIOLATIONS SETTLE BEFORE THEY EVER GO TO TRIAL JUDGE REGENSTEINER RULED AMONG OTHER FINDINGS THAT IN THE 1986 OFFERINGS OF TWO STOCKS UMB EQUITIES INC AND FIND SVP INC MESSRS PADGETT AND GRAFF DIRECTED A SCHEME OF PREARRANGED TRADES WHICH TOOK ADVANTAGE OF UNINFORMED CUSTOMERS AND PERMITTED THE REALIZATION OF HUGE PROFITS BY THE FIRM AND ITS EMPLOYEES THE UNDISCLOSED FEES OR MARKUPS RANGED FROM ABOUT 38 TO 200 AND TOTALED ABOUT 55 MILLION STUARTJAMES FOLDED IN 1990 BUT AT ITS PEAK IN 1986 AND 1987 IT HAD 56 OFFICES AND NEARLY 1000 SALES AGENTS FOUR OF ITS TOP OFFICIALS INCLUDING MESSRS PADGETT AND GRAFF FORMERLY HAD WORKED FOR PENNYSTOCK POWERHOUSE BLINDER ROBINSON & CO WHICH ALSO FOLDED 9303240026 930324 HOECHST SEEKS FIRM FOR US MARKETING OF ITS ABORTION PILL FRANKFURT IN A RARE PUBLIC STATEMENT ON THE ABORTION PILL RU486 HOECHST AG CHAIRMAN WOLFGANG HILGER CONFIRMED THE COMPANY IS SEEKING TO MARKET THE DRUG IN THE US THROUGH A THIRD PARTY MR HILGER'S COMMENTS ECHOED THOSE MADE RECENTLY BY THE DRUG'S FRENCH MAKER ROUSSELUCLAF WHICH IS CONTROLLED BY HOECHST AND APPEAR TO REPRESENT A SOFTENING IN HIS POSITION ON THE DRUG MR HILGER WAS THOUGHT BY SOME ABORTIONRIGHTS GROUPS TO BE BLOCKING THE DRUG'S INTRODUCTION IN THE US IN A NEWS CONFERENCE TO DISCUSS THE GERMAN CHEMICAL COMPANY'S FIRSTHALF EARNINGS MR HILGER SAID HOECHST WAS SEEKING TO WORK WITH A THIRD PARTY LIKELY ANOTHER GERMAN COMPANY WHICH WOULD TAKE ON THE ROLE OF INTRODUCING AND DISTRIBUTING THE DRUG IN NEW MARKETS MR HILGER GAVE NO INDICATION WHETHER SUCH A PARTNER HAD YET BEEN IDENTIFIED OR WHICH CANDIDATES WERE UNDER CONSIDERATION MR HILGER SAID HOECHST HAD REFUSED TO INTRODUCE THE DRUG PREVIOUSLY BECAUSE OF COMPANY POLITICS AND BECAUSE THE COMPANY DOESN'T HAVE THE DISTRIBUTION NETWORK FOR SUCH GYNECOLOGICAL PRODUCTS ONE OF THE CONDITIONS HOECHST HAS SET FOR THE INTRODUCTION OF RU486 INTO A NEW MARKET IS A WIDESPREAD GENERAL SOCIETAL ACCEPTANCE OF ABORTION AND CERTAIN CONDITIONS AS TO WHOM AND UNDER WHAT CONDITIONS THE DRUG IS ADMINISTERED BECAUSE OF THE CLINTON ADMINISTRATION'S OPEN ADVOCACY OF THE DRUG'S INTRODUCTION HOECHST HAS BEEN UNDER PRESSURE TO RELEASE RU486 IN THE US MR HILGER SAID LAST WEEK ROUSSELUCLAF SAID IT PLANS TO SELECT A RESEARCH ORGANIZATION TO BEGIN TESTING OF THE DRUG IN PATIENTS IN THE US WITHIN TWO MONTHS AT THE NEWS CONFERENCE HOECHST PREDICTED A FURTHER DROP IN ITS EARNINGS IN THE FIRST HALF OF 1993 MARKED BY A DETERIORATION OF EUROPEAN MARKETS THE FINANCIAL YEAR 1993 ABOVE ALL IN GERMANY HAS BEGUN MISERABLY WE CAN ONLY HOPE THAT THE DEPRESSION WILL SOON HAVE BOTTOMED OUT MR HILGER SAID CITING HIGH PRODUCTION COSTS IN GERMANY MR HILGER UNDERSCORED HOECHST'S COMMITMENT TO PUSH THROUGH A PROGRAM OF STRUCTURAL CHANGES AND STREAMLINING FOR THE FIRST QUARTER OF 1993 THE COMPANY'S SALES ARE EXPECTED TO BE DOWN 7 FROM A YEAR EARLIER RESULTING IN A CORRESPONDING DECLINE IN THE GROUP'S PROFIT LEVELS ANOTHER HOECHST OFFICIAL SAID 9303240025 930324 FLEET CALL INC CHANGES NAME RUTHERFORD NJ FLEET CALL INC SAID IT IS CHANGING ITS NAME TO NEXTEL COMMUNICATIONS INC TO REFLECT INTRODUCTION OF THE COMPANY'S NEXTEL DIGITAL WIRELESS COMMUNICATIONS SERVICE FLEET CALL AN OPERATOR OF MOBILE PAGING SYSTEMS PLANS TO LAUNCH ITS FIRST NEXTEL DIGITAL SYSTEM IN LOS ANGELES IN AUGUST 9303240023 930324 UNISYS GETS CHASE CONTRACT BLUE BELL PA UNISYS CORP SAID IT WAS AWARDED A MULTIYEAR CONTRACT FROM CHASE MANHATTAN CORP TO PROVIDE CHECK PROCESSING DISASTER RECOVERY SERVICES FOR CHASE MANHATTAN BANK UNISYS WILL MANAGE INFORMATION SYSTEMS AT CHASE'S SPECIAL DATA PROCESSING CENTER FOR DISASTER RECOVERY IN LAKE SUCCESS NY THE BACKUP CENTER PROVIDES CONTINGENCY CHECK PROCESSING AND OTHER SERVICES TO CHASE'S NEW PRIMARY DATA PROCESSING CENTER IN DOWNTOWN BROOKLYN IN NEW YORK CITY UNISYS SAID IT ALSO WILL PROVIDE THE BACKUP SERVICES TO OTHER FINANCIAL INSTITUTIONS FROM CHASE'S LAKE SUCCESS FACILITY 9303240022 930324 CREDIT RATINGS S&P RAISES RATINGS ON THE SENIOR DEBT OF CHEMICAL BANKING NEW YORK STANDARD & POOR'S CORP RAISED ITS SENIOR DEBT RATING ON CHEMICAL BANKING CORP AND SEVERAL OF ITS UNITS CITING MAJOR COSTCUTTING BENEFITS FROM THE BANK'S MERGER WITH MANUFACTURERS HANOVER CORP ABOUT 68 BILLION IN DEBT WAS AFFECTED THE RATINGS AGENCY SAID THAT CHEMICAL'S INTEGRATION OF THE MANUFACTURERS HANOVER OPERATIONS IS WELL IN HAND WITH NO SIGNIFICANT PROBLEMS SO FAR S&P SAID THE MERGER HAS ALLOWED FOR COSTCUTTING AND ENHANCED CHEMICAL'S MARKET POSITION IN SEVERAL BUSINESS SEGMENTS SUCH AS DERIVATIVES DEALING AND MIDDLE MARKET COMMERCIAL LENDING S&P SAID CHEMICAL HAS USED IMPROVED CAPITAL LEVELS TO FINANCE STRATEGIC INITIATIVES TO FURTHER STRENGTHEN ITS MARKET POSITION IN SUCH AREAS AS HOME MORTGAGES STILL THE BANKING CONCERN CONTINUES TO HAVE SIGNIFICANT LOAN QUALITY PROBLEMS THE RATINGS AGENCY RAISED ITS SENIOR DEBT RATING ON CHEMICAL BANKING CHEMICAL NEW YORK NV MANUFACTURERS HANOVER CORP MANUFACTURERS HANOVER OVERSEAS CAPITAL CORP AND TEXAS COMMERCE BANCSHARES TO SINGLEA FROM SINGLEAMINUS S&P ALSO RAISED ITS SUBORDINATED DEBT RATINGS OF CHEMICAL BANKING CORP CHEMICAL NEW YORK NV MANUFACTURERS HANOVER CORP AND MANUFACTURERS HANOVER OVERSEAS CAPITAL CORP TO SINGLEAMINUS FROM TRIPLEBPLUS IN ADDITION THE PREFERRED STOCK RATINGS OF CHEMICAL BANKING CORP WERE RAISED TO TRIPLEBPLUS FROM TRIPLEB THE RATING ON SUBORDINATED BANK NOTES OF CHEMICAL BANK WAS RAISED TO SINGLEA FROM SINGLEAMINUS CHEMICAL BANKING HAS PREVIOUSLY INDICATED ITS GOAL IS TO ATTAIN A DOUBLEA RATING FOLLOWING THE COMPLETION OF ITS MERGER WITH MANUFACTURERS HANOVER 9303240021 930324 INTERNATIONAL BRIEF FIAT SPA STOCK RISES 56 YET FIRM DENIES REPORTS OF ALLIANCE SHARES OF FIAT SPA JUMPED 56 YESTERDAY BUT A SPOKESWOMAN FOR THE ITALIAN AUTO MAKER SAID THE RISE WAS A NORMAL REBOUND FOLLOWING A 35 DROP ON MONDAY SHE SAID THERE WAS NO PARTICULAR REASON FOR THE STEEP RISE IN FIAT'S ORDINARY SHARE PRICE THE STOCK ROSE TO 5700 LIRE 360 AT ITS SETTLEMENT YESTERDAY UP 56 FROM 5400 LIRE MONDAY AND CLIMBED FURTHER TO 5820 LIRE IN AFTERHOURS TRADING TRADING WAS HEAVY TRADERS CITED A NUMBER OF REASONS FOR FIAT'S SHARP RISE INCLUDING FRESH RUMORS THAT THE COMPANY WAS CLOSE TO FORGING AN INTERNATIONAL ALLIANCE LAST WEEK A PUBLISHED REPORT SAID THAT RENAULT SA OF FRANCE HAD AGREED TO TAKE A 40 STAKE IN FIAT AUTO SPA BUT BOTH COMPANIES DENIED THAT REPORT BUT MARKET SOURCES SAID THEY UNDERSTAND FIAT WOULD BE WILLING TO CONSIDER EXCHANGING MINORITY STAKES WITH ANOTHER CAR MAKER AS A FIRST STEP TOWARD A POSSIBLE ALLIANCE IT WOULD BE AN ENGAGEMENT RATHER THAN A MARRIAGE ONE SOURCE SAID 9303240020 930301 PRICING HEALTH CARE THE MYTH OF UNNECESSARY CARE BY BRANT S MITTLER THE CONVENTIONAL WISDOM IS THAT DOCTORS ARE ABUSING THEIR PATIENTS WITH MANY UNNECESSARY TESTS EITHER BECAUSE OF INCOMPETENCE OR GREED SUCH CARDIAC PROCEDURES AS BYPASS SURGERY CORONARY ANGIOPLASTY AND CORONARY ANGIOGRAPHY HAVE BEEN FAVORITE BIGTICKET TARGETS SO MUCH FOR CONVENTIONAL WISDOM THE NUMBER USUALLY ATTRIBUTED TO UNNECESSARY BYPASS SURGERY IS 50 THAT COMES FROM RESEARCH BY THE RAND CORP PUBLISHED IN THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION JAMA IN 1988 THE ACTUAL NUMBERS WERE 14 INAPPROPRIATE AND 30 UNCERTAIN WHICH CRITICS OF AMERICAN MEDICINE USUALLY ROUND OFF TO A POLITICALLY CORRECT 50 BECAUSE THE ORIGINAL RESEARCH FOCUSED ON MEDICARE PATIENTS THE AMERICAN ASSOCIATION OF RETIRED PERSONS WARNED ITS MEMBERS FOR SOME EXTREMELY POPULAR AND CONTROVERSIAL PROCEDURES SUCH AS BYPASS SURGERY THE RATE OF NEEDLESS SURGERY CLIMBS TO NEARLY ONEHALF BUT THERE ARE STARTLING NEW FINDINGS FROM RAND IN A SERIES OF ARTICLES IN THE FEB 10 ISSUE OF JAMA BASED ON A REVIEW OF MEDICAL RECORDS FROM 1990 IN NEW YORK STATE INVESTIGATORS NOW SAY THAT THE NUMBER OF INAPPROPRIATE BYPASSES IS ONLY 24 AND THE NUMBER DEEMED EQUIVOCAL IS 7 THAT'S ONLY ABOUT A FOURTH AS MUCH AS PREVIOUSLY THOUGHT FOR CORONARY ANGIOPLASTY THE FIGURES ARE 4 INAPPROPRIATE AND 38 UNCERTAIN FOR CORONARY ANGIOGRAPHY 4 INAPPROPRIATE AND 20 UNCERTAIN THESE NEW FINDINGS HAVE IMPORTANT IMPLICATIONS FOR THE BUSINESS COMMUNITY AND THE MEDICAL CONSUMER BUSINESS LEADERS HAVE RECEIVED A STEADY BARRAGE OF MARKETING PROMISES FROM UTILIZATIONREVIEW AND MANAGEDCARE ADVOCATES PROMISING TO MAKE AMERICAN COMPANIES MORE COMPETITIVE BY CUTTING OUT THE FAT OF UNNECESSARY CARE PRUDENTIAL ADVERTISES SOME MEDICAL EXPERTS HAVE CONCLUDED THAT UP TO 30 OF ALL MEDICAL PROCEDURES MAY NOT BE WORTHWHILE AETNA RUNS FULL PAGE NEWSPAPER ADS CLAIMING THAT IN 1991 AMERICANS PAID 145 BILLION FOR UNNEEDED TESTS AND TREATMENT ALONE STANFORD BUSINESS PROF ALAIN ENTHOVEN THE CHIEF ARCHITECT OF THE MANAGEDCOMPETITION MODEL FOR HEALTHCARE REFORM HAS OBSERVED RECENT REVIEWS IN TOP MEDICAL JOURNALS HAVE FOUND THAT PATIENTS ARE RECEIVING LARGE AMOUNTS OF INAPPROPRIATE SURGERY THAT THEY WOULD DEFINITELY BE BETTER OFF WITHOUT HIS SOLUTION LARGE HEALTHMAINTENANCE ORGANIZATIONS TO TRIM THE FAT BUT IF THERE'S NOT THAT MUCH UNNECESSARY CARE AS THE NEW RAND FINDINGS SUGGEST WHO NEEDS MANAGED COMPETITION WHO NEEDS ALL THE EXPENSIVE HEALTHCARE MIDDLEMEN BUSINESSES WOULD BE BETTER OFF CONTRACTING WITH HOSPITALS AND DOCTORS DIRECTLY THE RAPIDLY GROWING PHYSICIAN HOSPITAL ORGANIZATION MOVEMENT IS PUSHING THIS APPROACH IN FACT THE PENDULUM MAY HAVE SWUNG FROM TOO MUCH CARE TO NOT ENOUGH RAND INVESTIGATORS NOW CONCEDE THAT SOME PATIENTS MIGHT HAVE BEEN DENIED NEEDED SURGERY AND WONDER WHETHER IT'S NOT TIME TO LOOK FOR UNDERUSE UNDERUSE IS PARTICULARLY HARD TO DETECT AND CAN BE A PARTICULAR PROBLEM IN HMOS WHERE GATEKEEPERS OFTEN HAVE A PERSONAL FINANCIAL INCENTIVE NOT TO ORDER EXPENSIVE DIAGNOSTIC TESTS AND OPERATIONS IF THE US DOES WIND UP WITH A MANAGEDCOMPETITION MODEL FEATURING A FEW LARGE HMOS FERRETING OUT UNDERUSE WILL BE NECESSARY FOR CONSUMER PROTECTION PRACTICING PHYSICIANS CARING FOR THE SICK ELDERLY HAVE BEEN SKEPTICAL OF THE ORIGINAL RAND STUDIES FROM THE BEGINNING THEY KNOW THAT LAST YEAR CONGRESS FINALLY DECIDED TO SHUT DOWN THE 50 MILLIONAYEAR MEDICARE BOONDOGGLE CALLED PREPROCEDURE AUTHORIZATION THIS PROGRAM REQUIRED DOCTORS TO CALL THEIR LOCAL PEER REVIEW ORGANIZATION PRO FOR APPROVAL BEFORE PERFORMING BYPASS SURGERY PACEMAKER INSERTION CAROTID ARTERY SURGERY AND THE LIKE IT WAS SUPPOSED TO ELIMINATE ALL THE INAPPROPRIATE PROCEDURES IDENTIFIED BY RAND BUT THE PROS NEVER COULD FIND MUCH UNNECESSARY CARE THE NUMBERS FOR TEXAS FOR 198991 ARE TELLING 16381 BYPASSES REQUESTED TWO DENIED 11288 CORONARY ANGIOPLASTIES REQUESTED NONE DENIED NATIONWIDE IN 1989 17 MILLION PROCEDURES WERE REVIEWED WITH AN AVERAGE DENIAL RATE OF ONLY 017 WHERE'S THE FAT THE ORIGINAL RAND RESEARCH HAS SPAWNED A VAST PRIVATE BUREAUCRACY OF UTILIZATIONREVIEW FIRMS AND THIRDPARTY ADMINISTRATORS MOST USE PROPRIETARY GUIDELINES NOT OPEN TO PUBLIC SCRUTINY ONE OF THE MOST SUCCESSFUL HAS BEEN VALUE HEALTH INC POPULATED WITH FORMER RAND RESEARCHERS BUT BLUE CROSS AND BLUE SHIELD OF MINNESOTA USING VALUE HEALTH SOFTWARE HAS BEEN ABLE TO CUT OUT ONLY ABOUT 6 OF CASES REVIEWED IN FACT IT NO LONGER EVEN REVIEWS BYPASS SURGERY SO WHY DO THESE REVIEWS SOME SAY IT'S TO INVOKE THE SENTINEL EFFECT OR THE PRESSURE CAUSED BY AN OBSERVER LOOKING OVER THE DOCTOR'S SHOULDER BUT EVEN THE AUDITORS ADMIT THAT THE SENTINEL EFFECT HAS NEVER BEEN PROVED WHAT HAS HAPPENED IS THAT PHYSICIANS AND HOSPITALS HAVE BEEN BOMBARDED WITH CALLS FROM TELEPHONE SECONDGUESSERS WHO HAVE CAUSED SO MUCH AGGRAVATION THAT NEW TERMS SUCH AS THE HASSLE FACTOR AND RATIONING BY INCONVENIENCE HAVE BEEN COINED BUT WHAT'S REALLY INSIDIOUS IS THE SEEMING OBJECTIVITY OF A REVIEW PROCESS THAT IS SUBJECTIVE AFTER ALL TERMS LIKE INAPPROPRIATE AND UNNECESSARY ARE DIFFICULT TO DEFINE IF IT'S YOU OR A MEMBER OF YOUR FAMILY WHO IS SICK ALL THE TESTS SEEM APPROPRIATE AND NECESSARY BUT IF IT'S THE OTHER GUY'S FAMILY MAYBE THE DOCTOR IS DOING THOSE TESTS JUST TO MAKE A BUCK LET'S ACKNOWLEDGE THAT IT'S DIFFICULT TO DEFINE THE RIGHT WAY TO PRACTICE MEDICINE THE HISTORY OF MEDICINE IS THE HISTORY OF CONVENTIONAL WISDOM PROVED WRONG LOOK AT THE RAND STUDIES THEMSELVES THE EXPERTS PICKED TO DEFINE APPROPRIATENESS DISAGREE AMONG THEMSELVES 40 OF THE TIME WHETHER THEY ARE CONSIDERING BYPASS SURGERY UPPER GI ENDOSCOPY OR ANGIOPLASTY AND IN ANOTHER RECENT RAND STUDY EXPERTS STUDYING CAROTID ARTERY SURGERY COULD NOT ACCURATELY PREDICT WHETHER PATIENTS WOULD HAVE A STROKE THIS SHOULD SURPRISE NO ONE THE CLINICAL COURSE OF CHRONIC DISEASE STILL REMAINS LARGELY UNKNOWN NO TEST IN CARDIOLOGY CAN PREDICT THE OCCURRENCE OF SUDDEN DEATH OR A HEART ATTACK AND THIS IS THE FUNDAMENTAL FLAW OF THE RAND APPROPRIATENESS METHODOLOGY WHICH RELIES ON THE HUNCHES OF DOCTORS REVIEWING SUMMARIES OF MEDICAL RECORDS WITHOUT INFORMATION ABOUT PATIENT PREFERENCES OR REAL OUTCOMES THAT'S WHY THE REAL REVOLUTION IN MEDICINE WILL COME FROM THE DEVELOPMENT OF OBSERVATIONAL DATABASES THAT TRACK PATIENT OUTCOMES AND SATISFACTION OVER LONG PERIODS THE DUKE CARDIOVASCULAR DATABANK HAS COMPULSIVELY FOLLOWED THOUSANDS OF CARDIAC PATIENTS FOR MORE THAN 20 YEARS THREE YEARS AGO DUKE REPORTED WHAT RAND'S EXPERTS HAD NOT YET FIGURED OUT A LOT MORE PATIENTS BENEFIT FROM BYPASS SURGERY THAN PREVIOUSLY THOUGHT PARTICULARLY THE SICKEST AND THE OLDEST DUKE'S DOCTORS HAD A COMPETITIVE ADVANTAGE BECAUSE THEY WERE ABLE TO CATALOG THEIR EXPERIENCE AND USE IT IN PATIENT CARE THE BUSINESS COMMUNITY HAS A VESTED INTEREST IN PROMOTING COMMUNITY AND HOSPITAL DATABASES THAT ALLOW DOCTORS TO SEARCH FOR THE MOST COSTEFFECTIVE WAYS TO DELIVER CARE EVERY HOSPITAL MEDICAL RECORD ROOM IN THE US SHOULD BE TRANSFORMED INTO AN OBSERVATIONAL DATABANK FOR THE MAJOR CHRONIC DISEASES RESPONSIBLE FOR MOST OF OUR HEALTHCARE COSTS THE COMPUTER TECHNOLOGY IS READILY AVAILABLE AND RELATIVELY INEXPENSIVE COMPARED WITH THE BILLIONS OF DOLLARS HOSPITALS NOW SPEND SHUFFLING PAPERS FOR OUTSIDE AUDITORS AND PLAINTIFF ATTORNEYS WITH NO HOPE OF EVER KNOWING WHAT HAPPENS TO PATIENTS OVER TIME DR MITTLER IS A CARDIOLOGIST AND MEDICAL REPORTER FOR KENSTV IN SAN ANTONIO TEXAS SEE RELATED LETTERS LETTERS TO THE EDITOR EQUAL MEDICAL CARE FOR ALL RICH AND POOR WSJ MARCH 23 1993 9303010070 9303240019 930324 INTERNATIONAL TAIWAN GOVERNMENT SIGNALS READINESS TO EXPAND ITS CONTACTS WITH CHINA BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN THE GOVERNMENT OF TAIWAN IS SIGNALING THAT IT IS READY TO DEAL WITH BEIJING WITHOUT MANY OF THE RIGID CONDITIONS IT PREVIOUSLY IMPOSED ON ITS LONGFROZEN RELATIONSHIP WITH CHINA SINCE PRESIDENT LEE TENGHUI CHANGED PRIME MINISTERS LAST MONTH THE GOVERNMENT IS DEMONSTRATING GREATER COHESION ON POLICY THAN IT HAS SHOWN IN MANY YEARS BUT WHILE THERE ARE SIGNS OF WARMTH FROM BEIJING OFFICIALS RESPONSIBLE FOR TAIWAN RELATIONS THE RESPONSES DON'T DISPLAY THE SAME URGENCY TAIPEI HAS SHOWN AND THAT WORRIES CRITICS IN TAIWAN WHO FEAR THEIR GOVERNMENT IS RUSHING INTO BEIJING'S EMBRACE AMONG TAIPEI'S RECENT ACTIONS THE GOVERNMENT HAS SAID OFFICIALS RESPONSIBLE FOR RELATIONS WITH BEIJING NO LONGER ARE BANNED FROM VISITING CHINA ANY OFFICIAL BELOW THE RANK OF SECTION CHIEF WILL BE PERMITTED TO MAKE PRIVATE VISITS AND THE CHAIRMEN OF THE UNOFFICIAL ORGANIZATIONS SET UP BY BOTH GOVERNMENTS TO DEAL WITH ALREADY EXTENSIVE BUSINESS AND TOURIST CONTACTS ARE EXPECTED TO MEET ON NEUTRAL GROUND IN SINGAPORE SOON LAST WEEK CHEYNE JY CHIU THE NEW SECRETARYGENERAL OF TAIWAN'S UNOFFICIAL ORGANIZATION THE STRAITS EXCHANGE FOUNDATION SAID TAIWAN NO LONGER INTENDS TO HOLD RIGIDLY TO ITS THREE NO'S POLICY WHICH PROHIBITS OFFICIAL CONTACTS WITH CHINA'S FUNCTIONARIES BILATERAL NEGOTIATIONS AND ANY COMPROMISE WITH BEIJING MR CHIU AND SENIOR GOVERNMENT OFFICIALS LATER SAID HE WAS ONLY EXPRESSING HIS OWN OPINION AND OFFICIALS INSIST THAT TAIWAN'S POLICY HASN'T CHANGED BUT MANY OBSERVERS SAID THE STATEMENT REPRESENTS A WILLINGNESS TO PERMIT EXPANDED CONTACTS IF BEIJING DEMONSTRATES GREATER FLEXIBILITY MR CHIU FORMER DEPUTY CHIEF OF STAFF TO PRESIDENT LEE IS EXPECTED TO TRAVEL TO BEIJING POSSIBLY IN THE NEXT FEW WEEKS TO LAY THE GROUNDWORK FOR THE SINGAPORE MEETING THE TAIWAN DELEGATION TO SINGAPORE WOULD BE LED BY CF KOO CHAIRMAN OF THE STRAITS EXCHANGE FOUNDATION A MEMBER OF THE CENTRAL STANDING COMMITTEE OF THE RULING KUOMINTANG ONE OF TAIWAN'S WEALTHIEST BUSINESSMEN AND A CONFIDANT OF PRESIDENT LEE HE WOULD MEET WITH WANG DAOHAN CHAIRMAN OF BEIJING'S ASSOCIATION FOR RELATIONS ACROSS THE TAIWAN STRAIT IF YOU PUT EVERYTHING TAIWAN HAS DONE TOGETHER THIS IS VERY GOOD AND A CLEAR SIGNAL TO THE OTHER SIDE SAYS AN ADVISER TO THE GOVERNMENT ON POLICY WITH CHINA EVERYTHING DEPENDS ON THE MOVEMENT OF BOTH SIDES WE HAVE MADE THESE SORTS OF ARRANGEMENTS TO SEND THE SIGNAL TO THE OTHER SIDE THAT WE ARE READY THIS ISN'T TO SAY THAT THE TWO SIDES ARE ABOUT TO RESOLVE THEIR DECADESOLD POLITICAL CONFLICT WHICH ENGULFED CHINA IN CIVIL WAR BETWEEN THE KUOMINTANG AND THE COMMUNIST PARTY AND WHICH AFTER THE KMT WAS EJECTED TO TAIWAN IN 1949 BROUGHT MORE THAN 40 YEARS OF CROSSSTRAIT HOSTILITY BUT ECONOMIC TIES HAVE GROWN RAPIDLY SINCE THE 1980S WITH AS MUCH AS 10 BILLION OF TAIWAN CAPITAL INVESTED IN CHINA AND BILATERAL TRADE LAST YEAR THAT TOPPED 7 BILLION HUNDREDS OF THOUSANDS OF TAIWAN RESIDENTS TRAVEL TO CHINA EVERY YEAR AND THERE IS NOW A SMALL FLOW OF VISITORS FROM CHINA TO TAIWAN UNOFFICIAL CONTACTS HAVE OCCURRED IN THE PAST TWO YEARS AS BOTH GOVERNMENTS DEALT WITH THE LEGAL ISSUES THAT EMERGED AS TRADE AND TOURISM GREW BUT OFFICIALS NOTE THAT THIS LEVEL OF CONTACT IS A LONG WAY FROM BILATERAL TALKS ON THE POLITICAL ISSUES SEPARATING THE TWO SIDES 9303240018 930324 SALES JOB CAR ANTITHEFT DEVICE IS A RUNAWAY SUCCESS FOR VETERAN PROMOTER BUT THE CLUB' REALLY ISN'T NEW NOR IS IT FOOLPROOF AGAINST THE LARCENOUS WHAT THE POLICE ARE SAYING BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL SHARON PA JIM WINNER HAS MADE MILLIONS IN THE PAST FEW YEARS GETTING THE CLUB HIS AUTO ANTITHEFT DEVICE ONTO 10 MILLION STEERING WHEELS THOUGH OFTEN NOT HIS OWN AS MR WINNER AND HIS COWORKERS CELEBRATED THEIR FORTUNE AT A COMPANY PARTY IN JANUARY THE CLUB WAS MISSING ON ALL BUT EIGHT OF THE MORE THAN 150 CARS OF EMPLOYEES AND THEIR GUESTS IN THE PARKING LOT INCLUDING ON MR WINNER'S LINCOLN TOWN CAR LIMOUSINE EVEN THOUGH THE CLUB ADVERTISED BY UNIFORMED POLICE OFFICERS COMES WITH INSTRUCTIONS TO BE USED EVERY TIME YOU PARK THE LAPSE IS UNDERSTANDABLE A CONSUMMATE SALESMAN MR WINNER DOESN'T MUCH CARE WHAT HE SELLS ONLY THAT HE SELLS IF IT WEREN'T THE CLUB IT WOULD HAVE BEEN SOMETHING ELSE IT COULD HAVE BEEN A DOOR KNOB HE SAYS THE PRODUCT IS NOT MY CAUSE I LIKE TO SELL AND SELL HE DOES IN HIS 63 YEARS MR WINNER HAS SOLD VACUUM CLEANERS PIANOS INSURANCE AND CHEMICALS NOT ALWAYS WITH SUCCESS BUT ALWAYS AGGRESSIVELY BUT IT IS THE CLUB NOW ON ONE IN 20 CARS IN THE US AND AIMING FOR ONE IN THREE THAT HAS BROUGHT MR WINNER HIS BIGGEST SCORE HIS WINNER INTERNATIONAL CORP HAS GROWN TO 150 EMPLOYEES FROM THREE PEOPLE SIX YEARS AGO IT EXPECTS ANNUAL SALES NOW MORE THAN 100 MILLION TO DOUBLE THIS YEAR AND TO HIT 500 MILLION BY 1995 LAST YEAR IT EARNED 35 MILLION THE PRIVATE COMPANY SAYS IT IS DISCUSSING WITH INVESTMENT BANKERS A POSSIBLE STOCK OFFERING THIS SPRING THE CLUB ITSELF IS NOTHING NEW A PATENT FOR A SIMILAR DEVICE WAS ISSUED IN 1919 AND NOTHING SPECTACULAR A SKILLED THIEF CAN DEFEAT THE DEVICE IN SECONDS ALTHOUGH WINNER EMPLOYEES SAY THEY BELIEVE IN THE CLUB AND DIDN'T USE IT AT THE BANQUETHALL PARKING LOT BECAUSE SHARON IS A LOWCRIME AREA IT REMAINS DOUBTFUL THAT THE CLUB WOULD HAVE MADE IT AS A CONSUMER PRODUCT WITHOUT A HERCULEAN SALES JOB BY MR WINNER EACH PHONE RECEIVER IN HIS COMPANY'S OFFICES CARRIES A STICKER THAT SAYS SENSE OF URGENCY AND EACH OFFICE IS EQUIPPED WITH A LARGE SIGN COMMANDING STAY FOCUSED EVERY TIME HE COMES IN IT'S AN OFFTHEWALL DEAL THAT MAKES ME WONDER IF HE'S KIDDING SAYS STEPHEN GURGOVITS PRESIDENT OF FIRST NATIONAL BANK OF PENNSYLVANIA AND MR WINNER'S BANKER FOR THREE DECADES BUT YOU CAN SEE THE GLEAM IN HIS EYE AND YOU CAN'T DOUBT HIM BECAUSE YOU KNOW HE'LL DO IT AND DO IT WELL MR WINNER'S LATEST ENDEAVOR HASN'T BEEN TROUBLEFREE LAST MONTH HE AGREED TO PAY AN UNDISCLOSED SUM TO SETTLE A LAWSUIT BROUGHT BY CHARLES JOHNSON A MECHANIC WHO SAID HE HAD INVENTED THE CLUB MR WINNER WHO PORTRAYS HIMSELF AS THE INVENTOR ARGUED IN US DISTRICT COURT IN AKRON OHIO THAT MR JOHNSON WAS ONLY A CONSULTANT THE JURY IN THE CASE DETERMINED THERE WAS NO FORMAL PARTNERSHIP BETWEEN THE TWO BUT DECIDED MR WINNER HAD UNJUSTLY ENRICHED HIMSELF AT MR JOHNSON'S EXPENSE MR WINNER CONTINUES TO DENY THIS AND SAYS THE JURY WAS ACTING OUT OF SYMPATHY FOR MR JOHNSON MR JOHNSON'S LAWYER TERRENCE J GOGGIN SAYS MR JOHNSON INVENTED THE CLUB BEFORE HE MET MR WINNER MR WINNER SAYS HE SUGGESTED NUMEROUS CHANGES TO MR JOHNSON'S UNMARKETABLE DEVICE LAST YEAR THE COMPANY ALSO HAD TO BACK DOWN FROM VARIOUS ADVERTISING CLAIMS AFTER INQUIRIES BY THE FEDERAL TRADE COMMISSION AND THE BETTER BUSINESS BUREAU'S NATIONAL ADVERTISING DIVISION ADS HAD SAID THAT OVER 600 POLICE DEPARTMENTS ENDORSE AND RECOMMEND THE CLUB THE NAD SAID WINNER WAS UNABLE TO SHOW ANY POLICE DEPARTMENT IN THE NATION ENDORSED OR RECOMMENDED THE CLUB MR WINNER HIS REAL NAME IS NOT A MODEST MAN HIS NAME APPEARS IN SIXFOOTHIGH NEON LIGHTS ON A DOWNTOWN SHARON DEPARTMENT STORE HE OWNS CALLED THE WINNER AFFABLE AND BEARDED HE HAS A SHORT ATTENTION SPAN AND UNYIELDING INTENSITY HIS WIFE SAYS HE PURSUED HER RELENTLESSLY BEFORE SHE AGREED TO MARRY HIM JAMES E WINNER JR GREW UP ON A DAIRY FARM IN NORTHWEST PENNSYLVANIA AND ATTENDED A ONEROOM SCHOOL HIS RESUME INCLUDES TWO YEARS AT THE SHENANGO VALLEY COMMERCIAL INSTITUTE AND DOORTODOOR SALES OF VACUUM CLEANERS AND LIFE INSURANCE SITTING AROUND THE KITCHEN TABLES OF SHARON IN THE 1950S HE SAYS HE LEARNED HIS FIRST BIG SALES LESSON NO' DOESN'T REALLY MEAN NO HE LATER SOLD CHEMICALS AND DISTRIBUTED AN ANTISHOPLIFTING SYSTEM FOR RETAILERS HE BOUGHT A HALFINTEREST IN A SMALL CHAIN OF PIANO AND ORGAN STORES RUNNING COMMERCIALS IN WHICH A PIANIST OFFERED TO TEACH CUSTOMERS TO PLAY SPANISH EYES WITH ONE FINGER IN 15 MINUTES BUT AS ORGAN SALES SLUMPED NATIONALLY THE STORES WERE CLOSED IN 1978 WE COULDN'T BEAT THE TREND HE SAYS FOR A WHILE THE INN SEEMED A BIG HIT MR WINNER SOLD THE BUSINESS TO SOME INVESTORS THEN IT CLOSED MR WINNER NOW RUNS TWO TOURIST ATTRACTIONS NEAR SHARON THE OLD ORDER AMISH TOUR FARM WHICH BOASTS COSTUMED GUIDES AND THE WORLD'S FRIENDLIEST BUNNIES BUT NOT A REAL AMISH PERSON IN SIGHT AND TARA A COUNTRY INN WHOSE GUESTS PAY UP TO 318 A NIGHT TO CELEBRATE THE FONDLY REMEMBERED ANTEBELLUM SOUTH A FEW YEARS AGO TARA WAS AN ABANDONED HOUSE NOW IT IS THE COUNTY'S BIGGEST TOURIST ATTRACTION MR WINNER'S WIFE DONNA FAKES A SOUTHERN ACCENT IN THE INN'S PROMOTIONAL VIDEO WITH THE CLUB MR WINNER HAS BEEN ABLE TO PEDDLE ON A MUCH LARGER SCALE ACCORDING TO ADS IT ALL BEGAN LIKE THIS IN 1986 WHEN SOMEBODY STOLE JIM WINNER'S NEW CADILLAC A NEW INVENTION CAME ABOUT THAT TOOK MECHANICAL SECURITY DEVICES TO A NEW LEVEL IN FACT MR WINNER WAS WORKING WITH MR JOHNSON THE MECHANIC ON DESIGNS FOR A NEW STEERINGWHEEL LOCK BEFORE THE CAR THEFT SIMILAR DEVICES WERE ALREADY ON THE MARKET THERE NOW ARE SOME 50 VARIETIES WITH NAMES LIKE GORILLA GRIP BIG STICK AND THE CLAW WINNER LOST A PATENTINFRINGEMENT SUIT AGAINST ONE MAKER WOLO MANUFACTURING CORP OF DEER PARK NY IN US DISTRICT COURT IN NEW YORK TODAY WINNER FIGHTS RIVALS ONLY IF THEY SEEM TO COPY THE CLUB'S APPEARANCE THE CLUB'S EFFECTIVENESS IS ANOTHER MATTER WINNER INTERNATIONAL SAYS CARS USING IT ARE 99 LESS LIKELY TO BE STOLEN THE DEVICE LOCKS TO A STEERING WHEEL AND BUMPS INTO THE WINDSHIELD TO PREVENT THE WHEEL FROM TURNING ERIE INSURANCE GROUP OF ERIE PA GIVES A 5 DISCOUNT ON ITS COMPREHENSIVE POLICIES FOR USING THE CLUB BUT NO ONE SEEMS TO HAVE ANY DATA ON THE CLUB'S EFFECTIVENESS STATE FARM INSURANCE COS THE NATION'S LARGEST AUTO INSURER DOESN'T OFFER DISCOUNTS FOR USING THE DEVICES BEN PARR STATE FARM'S AUTOINDUSTRY SPECIALIST SAYS THAT THE CLUB MAY DETER SOME THEFT BUT THAT GOOD THIEVES CAN DEFEAT THE DEVICE IN SECONDS BY SAWING THROUGH THE STEERING WHEEL OR SPRAYING THE CLUB WITH LIQUID NITROGEN WHICH FREEZES THE METAL SO THAT IT BREAKS LIKE AN ICICLE CONSUMER REPORTS HAS SAID IT WOULDN'T RECOMMEND YOU DEPEND SOLELY ON THE CLUB OR OTHER STEERING LOCKS WHAT GIVES THE CLUB A LOCK ON 75 OF THE MARKET FOR SUCH DEVICES ISN'T THE PRODUCT'S ORIGINALITY OR EFFECTIVENESS BUT MR WINNER'S MARKETING JOB BACK IN 1987 BEFORE THE CLUB HAD GONE INTO PRODUCTION MR WINNER PERSUADED SEARS ROEBUCK & CO TO OFFER IT NATIONALLY HIS INITIAL CONTACT WAS A SEARS REGIONAL MANAGER WHO CAME TO THE SHENANGO INN I TALKED TO HIM LIKE A DUTCH UNCLE MR WINNER SAYS SOON AFTERWARD KMART WALMART AND ALL THE BIG AUTOPARTS AND HARDWARE CHAINS CAME ABOARD NOW THE PRODUCT IS IN 15000 OUTLETS INCLUDING SOME SUPERMARKETS AND DRUGSTORE CHAINS WINNER SUGGESTS A RETAIL PRICE OF 5995 DOUBLE THAT OF SOME COMPETITORS THE CLUB COSTS ABOUT 12 TO MAKE IN TAIWAN AND CHINA RETAILERS SAY THEY PAY A WHOLESALE PRICE OF 27 OR LESS MR WINNER EXPLAINS THE MARKUPS THIS WAY WE'RE NOT SELLING A PIECE OF METAL FOR 5995 WE'RE SELLING SOMETHING THAT CAN PROTECT A 20000 INVESTMENT THE COMPANY OFFERS TO PAY OWNERS UP TO 500 TOWARD THEIR INSURANCE DEDUCTIBLE IF THEIR CAR IS STOLEN WITHIN A YEAR OF BUYING THE DEVICE IT SAYS IT PAID 147 CLAIMS IN 1991 WHILE REJECTING 40 OR SO THAT DIDN'T MEET ITS VARIOUS CONDITIONS MR WINNER KEEPS HIS EMPHASIS SQUARELY ON SALES SEVEN OF THE COMPANY'S NINE VICE PRESIDENTS ARE IN SALES SALESMEN HAVE BIG POTENTIAL REWARDS BONUSES OF UP TO 50000 BUT LOTS OF PRESSURE INCLUDING PROBATION OR DISMISSAL FOR MISSING WEEKLY SALES TARGETS MR WINNER STILL PERSONALLY HANDLES THE TWO LARGEST ACCOUNTS SEARS AND PEP BOYS MANNY MOE & JACK THE COMPANY SPENDS 20 OF ITS SALES ON ADVERTISING EARLY ON MR WINNER HIRED A FORMER CAR THIEF TO TEST THE CLUB HE ALSO GAVE 500 CLUBS TO PORSCHE CLUB OF AMERICA IN LOS ANGELES FOR A TEST AND PUBLICIZED THE FAVORABLE RESULTS THEN HE RECRUITED POLICE FOR PRINT TV AND BILLBOARD ADS THE COMPANY INITIALLY RAN TV COMMERCIALS STARRING A PITTSBURGH POLICEMAN THEN IT TURNED TO SHARON POLICE CAPT JACK KLARIC FOR A SERIES OF ADS THAT BEGAN WITH THE PROCLAMATION I'M NOT AN ACTOR I'M A POLICE OFFICER HE IS PAID BY THE COMPANY AND READS SCRIPTS MR KLARIC IS NOW PAIRED WITH A FEMALE COP THE COMPANY HAS ALSO BOUGHT RADIO ADS IN WHICH TALKSHOW HOSTS SUCH AS PAUL HARVEY AND RUSH LIMBAUGH PERSONALLY PITCH THE CLUB ON THEIR PROGRAMS BUT THE BEST PLUGS ARE THOSE THE COMPANY DOESN'T PAY FOR THAT IS THE PURVIEW OF GARY F BONANNO WINNER INTERNATIONAL'S DIRECTOR OF POLICE OPERATIONS THOUGH HE HAS NO BACKGROUND IN LAW ENFORCEMENT MR BONANNO WEARS A US MARSHAL GOLD STAR ON HIS LAPEL ATTENDS LAWENFORCEMENT CONFERENCES IN SOME 30 STATES EACH YEAR AND GENTLY PERSUADES POLICE DEPARTMENTS TO USE THE CLUB OR PITCH TV STORIES ABOUT IT TO LOCAL STATIONS MR BONANNO NOW IS TRYING TO PERSUADE COURTS TO USE THE CLUB ON CARS OF DRUNKDRIVING OFFENDERS THE COMPANY IS ALSO TARGETING BANKS CREDIT UNIONS AND CAR DEALERS TO USE THE CLUB IN PROMOTIONS LAST SPRING IT PERSUADED VARIOUS AUTOMOBILE ASSOCIATION OF AMERICA CHAPTERS TO SELL THE CLUB IN THEIR OFFICES AND NEWSLETTERS NEXT IT WANTS TO WIN ENDORSEMENTS FROM AUTO INSURERS BUT NOT EVERYBODY HAS BEEN PERSUADED IN ADDITION TO THE CONTROVERSY OVER POLICEDEPARTMENT ENDORSEMENTS THE FTC INQUIRY LED WINNER INTERNATIONAL TO DROP ITS CLAIM THAT OVER 220000 POLICE MEMBERS FROM THE NATIONAL FRATERNAL ORDER OF POLICE RECOMMEND THE CLUB BECAUSE A RECOMMENDATION BY THE FRATERNAL ORDER DIDN'T MEAN EACH OF ITS MEMBERS ENDORSED THE CLUB IN ANY CASE THE COMPANY MAKES DONATIONS TO THE FRATERNAL ORDER WINNER HAS GIVEN AWAY SOME 3000 CLUBS TO POLICE DEPARTMENTS IT DONATED A 5000 STAND TO DISPLAY THE CLUB IN THE AMERICAN POLICE HALL OF FAME AND MUSEUM IN MIAMI WHICH ISN'T PART OF ANY POLICE ORGANIZATION WINNER INTERNATIONAL HAS EXPANDED THE CLUB LINE TO INCLUDE DESIGNER COLORS AND NINE MODELS FOR CARS TRUCKS AND BOATS A SMART CLUB THAT CHIMES IS IN THE OFFING ALONG WITH THINGS LIKE AN ULTRASONIC DEVICE TO SCARE ANIMALS OUT OF A CAR'S WAY BUT THE COMPANY EXPECTS ITS NEXT WINNER TO BE A HOMESECURITY DEVICE CALLED THE DOOR CLUB A STEEL BAR ANCHORED IN THE FLOOR ADS WILL SHOW A KARATE EXPERT TRYING BUT FAILING TO BEAT IT MR WINNER DIDN'T INVENT THE DOOR CLUB CREDIT FOR THAT GOES TO A SMALL FIRM IN BIRMINGHAM ALA BUT TO MR WINNER THIS DOESN'T MATTER ANY MORE THAN HIS TENDENCY TO FORGET THE CLUB ON HIS OWN CAR I WANT TO BE REMEMBERED AS A VERY VERY GOOD MARKETER HE SAYS THAT'S ALL I WANT 9303240017 930324 BUSINESS BRIEF GILLETTE CO JUDGE REFUSES US REQUEST TO BLOCK PARKER PEN OFFER A FEDERAL JUDGE REFUSED A JUSTICE DEPARTMENT REQUEST TO BLOCK TEMPORARILY GILLETTE CO FROM OFFERING TO BUY PARKER PEN HOLDINGS INC THE DEPARTMENT HAD ARGUED THAT THE ACQUISITION OF PARKER BASED IN NEWHAVEN ENGLAND WOULD VIOLATE ANTITRUST LAW BY GIVING BOSTONBASED GILLETTE 40 OF THE PREMIUM FOUNTAIN PEN MARKET US DISTRICT JUDGE STANLEY SPORKIN SAID IT WOULD BE PREMATURE TO STOP THE DEAL HE ALSO SAID HE DOUBTED THE PUBLIC WOULD BE HARMED BY THE TRANSACTION GILLETTE SAID THAT IT WAS VERY PLEASED WITH THE JUDGE'S DECISION AND THAT IT WOULD PROCEED WITH ITS OFFER FOR PARKER SHARES TODAY THE OFFER IS SET TO EXPIRE MAY 6 GILLETTE SAID IT MUST SETTLE ANTITRUST CLAIMS BY MAY 6 OR THE DEAL WILL BE VOIDED 9303240016 930324 TUESDAY'S MARKETS STOCKS DECLINE BONDS INCREASE DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES SANK IN QUIET TRADING AS INVESTORS AWAITED FURTHER DEVELOPMENTS IN THE POWER STRUGGLE IN RUSSIA BOND PRICES CLIMBED AND THE DOLLAR WAS MIXED AGAINST OTHER MAJOR CURRENCIES THE DOW JONES INDUSTRIAL AVERAGE FELL 162 POINTS TO 346186 STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 012 TO 44876 AND THE NASDAQ COMPOSITE INDEX LOST 158 TO 67504 A POWERFUL RALLY IN AIRLINE STOCKS DROVE THE DOW JONES TRANSPORTATION INDEX UP 2015 OR 132 TO 155114 ANALYSTS WERE ENCOURAGED BY THE FINANCIAL MARKETS' CONTINUED RESTRAINT IN THE FACE OF THE CRISIS IN RUSSIA EUROPEAN STOCK MARKETS STABILIZED AFTER TUMBLING MONDAY WITH FRANKFURT AND LONDON SLIPPING LESS THAN 1 WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 042 TO 9911 THE MARKET IS TELLING US THAT THE RUSSIA SITUATION IS GOING TO BE PEACEFULLY RESOLVED AND WON'T MEAN A RETURN TO HARDLINERS SAID TRACY HERRICK CHIEF INVESTMENT STRATEGIST AT JEFFERIES & CO A LOS ANGELESBASED INVESTMENT BANK AND TRADING FIRM IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2319 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 983 ISSUES FELL AND 888 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN THREEEIGHTHS OF A POINT OR MORE THAN 375 FOR EACH 1000 FACE AMOUNT TO YIELD 676 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16305 MARKS AND 11595 YEN COMPARED WITH 16380 MARKS AND 11563 YEN MONDAY 9303240015 930324 ABREAST OF THE MARKET RUSSIAN POLITICAL SITUATION LEAVES INDUSTRIAL AVERAGE LITTLE CHANGED BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS MARKED TIME YESTERDAY WAITING FOR FURTHER DEVELOPMENTS IN RUSSIA'S POLITICAL BATTLE RUSSIAN PRESIDENT BORIS YELTSIN'S POWER STRUGGLE WITH HARDLINER LAWMAKERS SPOOKED WORLD FINANCIAL MARKETS MONDAY AND SENT US STOCKS SLIDING YESTERDAY THE DOW JONES INDUSTRIAL AVERAGE EASED 162 POINTS TO 346186 AFTER SPENDING THE DAY CRISSCROSSING A NARROW RANGE THE BROADER MARKET ALSO ENDED LOWER STANDARD & POOR'S 500STOCK INDEX FELL 012 POINT TO 44876 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 008 TO 24726 THE DOW JONES EQUITY MARKET INDEX SLIPPED 020 TO 42550 DECLINERS OUTPACED ADVANCERS 983 TO 888 BIG BOARD VOLUME TOTALED 231900000 ABOUT EQUAL WITH MONDAY'S VOLUME HUGH A JOHNSON JR CHIEF INVESTMENT STRATEGIST AT FIRST ALBANY SAID STOCKS HOLD MORE RISK FOR INVESTORS THAN POTENTIAL REWARDS GIVEN THE CURRENT ATMOSPHERE OF UNCERTAINTY I WOULDN'T BE AT ALL UNCOMFORTABLE ABOUT HOLDING CASH MR JOHNSON SAID NOTING THAT IT IS TOO EARLY TO TELL HOW THE RUSSIAN SITUATION WILL PLAY OUT IF THE HARDLINERS WIN MANY EXPERTS FEAR PRESIDENT CLINTON'S ECONOMIC PROGRAM WILL BE JEOPARDIZED HIS DEFICITCUTTING PLANS RELY HEAVILY ON TRIMMING THE DEFENSE BUDGET HAWKS IN THE US CONGRESS WOULD BE EXPECTED TO CHALLENGE DEEP DEFENSE CUTS IF RUSSIA SWINGS BACK TOWARD COMMUNIST RULE DESPITE THE BROAD MARKET WEAKNESS AIRLINE STOCKS SOARED AT LEAST FIVE DIFFERENT BROKERAGE HOUSES MADE POSITIVE COMMENTS ON THE GROUP CITING PRELIMINARY SIGNS THAT DOMESTIC TRAVEL IS PICKING UP UAL JUMPED 3 1/4 TO 120 3/8 AMR ADDED 1 5/8 TO 63 3/4 AND DELTA AIR LINES ROSE 2 TO 51 7/8 THE GAINS IN THE AIRLINE STOCKS PUSHED THE DOW JONES TRANSPORTATION AVERAGE UP 2015 POINTS TO 155114 DRUG AND HEALTHCARE STOCKS ALSO RALLIED COMING BACK FROM THEIR RECENT SELLOFF CONCERNS ABOUT GOVERNMENT REGULATION AIMED AT LOWERING HEALTHCARE COSTS HAVE HURT THE GROUP BUT MANY INVESTORS BELIEVE THE SELLING WAS OVERDONE MERCK GAINED 1 1/4 TO 37 JOHNSON & JOHNSON JUMPED 1 1/8 TO 40 5/8 AND PFIZER ROSE 1 7/8 TO 59 5/8 THE BUYING AMONG DRUG STOCKS MIGHT HAVE BEEN PREMATURE HOWEVER AFTER THE MARKET CLOSED MERCK SAID IT EXPECTS EARNINGS GROWTH TO SLOW THIS YEAR AND ANNOUNCED WORK FORCE CUTS THAT WILL RESULT IN A CHARGE TO EARNINGS FIRST DATA TOPPED THE MOST ACTIVE LIST GAINING 1 1/8 TO 33 ON VOLUME OF MORE THAN SEVEN MILLION SHARES AMERICAN EXPRESS SOLD 32 MILLION SHARES OF ITS FIRST DATA STOCK IN AN OFFERING PRICED LATE MONDAY AT 32 EACH TAMBRANDS FELL 4 1/8 TO 57 5/8 IN HEAVY TRADING AFTER THE COMPANY MET WITH ANALYSTS YESTERDAY MORNING AND DISCUSSED ITS EARNINGS OUTLOOK BALLY MANUFACTURING ROSE 3/8 TO 6 3/4 AFTER IT SAID IT WILL ACTIVELY PURSUE CASINO PROJECTS IN MARKETS OUTSIDE ATLANTIC CITY NJ AND NEVADA POGO PRODUCING FELL 1 3/8 TO 13 1/2 THE COMPANY SAID IT WILL PLUG AND ABANDON THE CATTLEYA NO 1 EXPLORATION WELL IN THE GULF OF THAILAND MARTECH USA DROPPED 3/4 TO 8 1/4 THE COMPANY'S SECONDQUARTER NET INCOME WAS 14 CENTS A SHARE COMPARED WITH 19 CENTS A YEAR EARLIER LIFETIME CORP JUMPED 4 TO 21 5/8 THE COMPANY REJECTED A 2350ASHARE ACQUISITION PROPOSAL FROM ABBEY HEALTHCARE CALLING THE OFFER INADEQUATE OUTBOARD MARINE FELL 1 7/8 TO 18 5/8 THE COMPANY SAID THAT BECAUSE OF SLOW SALES IN EUROPE AND THE US SECONDQUARTER PROFIT WILL BE BELOW THE YEARAGO 10 CENTS A SHARE RAYTECH ROSE 5/8 TO 3 3/4 AFTER REPORTING FISCAL FOURTHQUARTER PROFIT OF SEVEN CENTS A SHARE COMPARED WITH A LOSS OF EIGHT CENTS A SHARE IN THE YEAREARLIER PERIOD SEA CONTAINERS CLASS A SHARES GAINED 1 3/4 TO 23 3/4 THE COMPANY EARNED 28 CENTS A SHARE IN THE FISCAL FOURTH QUARTER COMPARED WITH A LOSS OF 40 CENTS A YEAR AGO OXFORD INDUSTRIES DROPPED 1 3/8 TO 17 THE COMPANY SAID ITS FOURTH QUARTER WILL BE HURT BY SEARS ROEBUCK'S DECISION TO DISCONTINUE ITS CATALOG OPERATIONS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 038 TO 41956 THERE WERE 284 DECLINERS AND 270 ADVANCERS 9303240014 930324 LAW LEGAL BEAT EXSMOKER'S SMALLCLAIMS SUIT COULD LIGHT A LITIGATION FUSE BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL AN EXSMOKER'S LAWSUIT AGAINST PHILIP MORRIS COS IS LOOMING LARGE PRECISELY BECAUSE IT'S SO SMALL IN THE PAST ANTISMOKING ACTIVISTS HAVE FOCUSED THEIR EFFORTS ON BIG STATE AND FEDERAL COURT CASES IN WHICH PLAINTIFFS HAVE SOUGHT MONEY DAMAGES FOR ILLNESSES ALLEGEDLY CAUSED BY SMOKING BUT TOBACCOINDUSTRY LAWYERS HAVE SWARMED INTO THESE COURTROOMS AND CONSISTENTLY DEFEATED SUCH CLAIMS TO DATE NO TOBACCO COMPANY HAS HAD TO PAY A PENNY IN DAMAGES TO ANY PLAINTIFF ENTER AL DESKIEWICZ A 50YEAROLD DESIGN ENGINEER FROM KIRKLAND WASH WHO IS SEEKING 1153 FROM THE WORLD'S LARGEST CIGARETTE MAKER TO REIMBURSE HIM FOR THE COSTS OF QUITTING AFTER 34 YEARS AS A MARLBORO SMOKER BECAUSE THE CASE IS WORTH SO LITTLE FINANCIALLY IT HAS BEEN ASSIGNED TO SMALLCLAIMS COURT IN MERCER ISLAND NEAR SEATTLE IN THIS COURT NO SUITS INVOLVE MORE THAN 2500 AND NO LAWYERS ARE ALLOWED THE PROHIBITION ON LAWYERS IN EFFECT IN 11 STATES IS INTENDED TO KEEP SMALLCLAIMS CASES FLOWING MORE QUICKLY AND TO REDUCE THE PRODUCTION OF COURT PAPERS BUT IN A TOBACCO CASE IT OFFERS A PLAINTIFF THE UNIQUE OPPORTUNITY TO MAKE HIS ARGUMENTS WITHOUT OPPOSITION FROM THE PHALANX OF LAWYERS THAT HAS BEEN SO EFFECTIVE IN ALL THE BIGGER CASES AND IF MR DESKIEWICZ WINS ANTISMOKING ACTIVISTS SAY HE'LL HAVE THE DISTINCTION OF BEING THE FIRST PLAINTIFF TO DO SO AND OF PROVIDING A PATH FOR OTHERS TO FOLLOW PHILIP MORRIS COULD LOSE THOUSANDS OF SUCH SMALL CASES WITHOUT BEING AFFECTED FINANCIALLY BUT ANY LOSSES COULD TAKE A BIGGER TOLL IN TERMS OF PUBLIC RELATIONS IN ADDITION SUGGESTS ACTIVIST RICHARD DAYNARD SUCH CASES COULD ENCOURAGE MORE PEOPLE TO STOP SMOKING BY ALERTING THEM TO THE POSSIBILITY OF CHARGING A TOBACCO MAKER FOR THE COST OF KICKING THE HABIT PHILIP MORRIS IS WORRIED ENOUGH ABOUT THE MERCER ISLAND CASE TO HAVE SENT AT LEAST ONE LAWYER MR DESKIEWICZ SAYS THERE WERE FIVE TO WAIT IN THE HALLWAY DURING A RECENT HEARING IN THE CASE A SALESMAN RATHER THAN A LAWYER CARRIED THE BALL FOR PHILIP MORRIS INSIDE THE COURTROOM PHILIP MORRIS IS SPENDING A GREAT DEAL OF MONEY TO AVOID PAYING ME 1153 MR DESKIEWICZ SAYS APPARENTLY I REPRESENT A POTENTIAL LONGRANGE CAPITULATION THAT THEY FEAR I GUESS IF THEY AGREED TO SETTLE A LOT OF OTHER PEOPLE WOULD COME AFTER THEM CHARLES R WALL AN ATTORNEY FOR PHILIP MORRIS IN NEW YORK RESPONDS I DOUBT THAT SCENARIO'S POSSIBLE I DON'T BELIEVE IT HE SAYS A SMALLCLAIMS CASE WAS FILED IN FLORIDA LAST YEAR AND WAS DISMISSED A STATEMENT THAT COULDN'T IMMEDIATELY BE CONFIRMED IN THE MERCER ISLAND CASE MR DESKIEWICZ IS SEEKING REIMBURSEMENT FOR DOCTOR'S VISITS NICOTINE PATCHES AND A ONEYEAR MEMBERSHIP IN A HEALTH CLUB THAT HE JOINED TO LOSE THE WEIGHT HE GAINED WHEN HE STOPPED SMOKING MR DESKIEWICZ SAYS HE BELIEVES PHILIP MORRIS SHOULD PAY BECAUSE IT FAILED TO WARN HIM THAT NICOTINE WAS ADDICTIVE MY PURCHASING OF CIGARETTES WAS A COMPULSIVE REACTION TO MY ADDICTION HE CONTENDS SAYS PHILIP MORRIS'S LAWYER MR WALL WE DON'T BELIEVE THAT SMOKING IS ADDICTIVE AS HE CLAIMS THAT WILL PROBABLY BE A GOOD PORTION OF OUR DEFENSE MR DESKIEWICZ SAYS HE FILED HIS SUIT LAST FALL AFTER PHILIP MORRIS IGNORED THREE LETTERS IN WHICH HE OFFERED TO SETTLE FOR HALF THE COSTS MR WALL ACKNOWLEDGES THAT THE LETTERS WERE RECEIVED AND NOT ANSWERED BECAUSE HE SAYS WE JUST DO NOT SETTLE THESE KINDS OF CASES THE FIRST COURT HEARING IN THE CASE CAME EARLY THIS MONTH WHEN MR DESKIEWICZ PRESENTED HIS CLAIM AND WAS OPPOSED BY MICHAEL PFEIL A PHILIP MORRIS SALESMAN BECAUSE OF VARIOUS OBJECTIONS BY MR PFEIL SMALL CLAIMS JUDGE LINDA K JACKE POSTPONED FURTHER ARGUMENTS UNTIL JUNE 8 WHEN BOTH SIDES ARE EXPECTED TO PRESENT EVIDENCE TO SUPPORT THEIR CLAIMS MR DESKIEWICZ SAYS HE PLANS TO PRESENT MEDICAL DOCUMENTS AND TO HAVE HIS DOCTOR TESTIFY THAT HE WAS DIAGNOSED AS A NICOTINE ADDICT MR DAYNARD A LAW PROFESSOR WHO RUNS THE TOBACCO PRODUCTS LIABILITY PROJECT AN ANTISMOKING GROUP AT BOSTON'S NORTHEASTERN UNIVERSITY SAYS THAT MR DESKIEWICZ'S CASE SHOULD BE FAR EASIER TO WIN THAN THE BIG SMOKERS' LIABILITY CLAIMS FOR ONE THING THOSE CASES INVOLVE COMPLEX QUESTIONS OF DISEASE CAUSATION THAT AREN'T PRESENT IN THE MERCER ISLAND CASE MR DAYNARD SAYS THAT COINCIDENTALLY HIS ORGANIZATION IN BOSTON HAS BEEN EXPLORING THE SMALLCLAIMS ROUTE SINCE LAST SUMMER WHEN IT BEGAN RAISING FUNDS TO PUBLISH A MANUAL SHOWING HOW TO FILE SUCH SUITS NO SUCH MANUAL HAS YET BEEN PRINTED AND MR DESKIEWICZ SAYS HE KNEW NOTHING OF THE GROUP'S PLANS BEFORE HE FILED HIS SUIT MR DAYNARD SAYS HIS GROUP HOPES TO WORK WITH COMPANIES THAT MAKE NICOTINE PATCHES TO ENCOURAGE TREATMENT THAT'S FUNDED BY LAWSUITS AGAINST TOBACCO COMPANIES HE ADDS THAT THE SMALLCLAIMS LAWSUIT IS AN ALTERNATIVE FOR A DIFFERENT KIND OF PLAINTIFF AND THAT BIG LIABILITY SUITS WILL STILL BE PURSUED BUT VICTOR E SCHWARTZ A CORPORATEDEFENSE SPECIALIST WITH CROWELL & MORING IN WASHINGTON DC ARGUES THAT THE SMALLCLAIMS APPROACH WILL ULTIMATELY FAIL BECAUSE APPEALS COURTS WILL REJECT THEM AS OUTSIDE TRADITIONAL LEGAL PRINCIPLES IF YOU DECIDE TO AWARD PEOPLE MONEY FOR CORRECTING BAD HABITS AND EVEN ADDICTIONS TO ALCOHOL SUGAR AND BROWNIES THE CONSEQUENCES GO AGAINST COMMON SENSE AS WELL AS AGAINST TRADITIONAL NEGLIGENCE AND PRODUCTSLIABILITY LAW MR SCHWARTZ SAYS ON THE HEELS OF A COURTROOM VICTORY IN ST LOUIS FORD MOTOR CO OPTED TO SETTLE OUT OF COURT A SIMILAR LAWSUIT IN DENVER ALLEGING THAT ITS BRONCO II VEHICLE IS PRONE TO ROLLOVERS DETAILS OF THE SETTLEMENT WEREN'T DISCLOSED UNDER THE TERMS OF THE AGREEMENT ANNOUNCED YESTERDAY THE SETTLEMENT FOLLOWED FRIDAY'S ST LOUIS VERDICT IN WHICH A JURY ABSOLVED FORD OF ANY RESPONSIBILITY FOR A 1989 ROLLOVER ACCIDENT THAT LEFT A YOUNG WOMAN PERMANENTLY BRAIN INJURED FORD FACES MORE THAN 100 PRODUCTDEFECT SUITS ALLEGING THAT THE BRONCO II'S BOXY DESIGN IS TOO SHORT TOO NARROW AND TOO HIGH AND THUS PRONE TO ROLLING OVER SUDDENLY IN TIGHT MANEUVERS MORE THAN 260 PEOPLE HAVE BEEN KILLED IN SUCH ACCIDENTS ACCORDING TO THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY AN INSURANCEINDUSTRY TRADE GROUP THAT LAST YEAR WARNED THAT ROLLOVER FATALITIES IN THE BRONCO II ARE MORE FREQUENT THAN IN SIMILAR VEHICLES FORD DISPUTES THAT STUDY AS MISLEADING AND STEADFASTLY DEFENDS THE BRONCO II'S SAFETY OF THE DENVER SETTLEMENT A SPOKESMAN SAID WE WERE CONFIDENT THAT HAD IT GONE TO THE JURY WE WOULD HAVE DEMONSTRATED THAT THE VEHICLE WAS SAFE AND NOT DEFECTIVE AND CERTAINLY NOT THE CAUSE OF THIS TRAGIC INJURY THE DENVER SUIT STEMMED FROM A ROLLOVER IN IDAHO IN 1989 IN WHICH TWO MEMBERS OF A COLORADO FAMILY WERE KILLED AND A THIRD WAS LEFT PERMANENTLY DISABLED TWO OTHERS IN THE VEHICLE SURVIVED INCLUDING THE DRIVER ANCHIE FISCO THE ACCIDENT HAPPENED WHEN MRS FISCO BRIEFLY TOOK HER EYES OFF THE ROAD ALLOWING THE VEHICLE TO DRIFT ONTO THE SHOULDER AS SHE SWERVED BACK AND THEN SWERVED AGAIN TO STRAIGHTEN OUT THE BRONCO II IT FLIPPED AND ROLLED OVER TWICE FORD'S DEFENSE LAWYERS THEORIZED FROM PHOTOS OF ROAD MARKINGS THAT THE VEHICLE'S FRONT TIRE RIM HAD GOUGED INTO THE ROAD MOST LIKELY BECAUSE OF LOW TIRE PRESSURE AND TRIPPED THE BRONCO II BUT THE IDAHO STATE POLICE OFFICER WHO INVESTIGATED THE ACCIDENT DISPUTED THAT THEORY IN TESTIMONY ON MONDAY SETTLEMENT TALKS WHICH WERE ALREADY UNDER WAY CONCLUDED WITH AN AGREEMENT MONDAY NIGHT FORD MANUFACTURED THE BRONCO II FROM 1983 UNTIL 1990 WHEN THE OFFROAD VEHICLE WAS REPLACED BY THE POPULAR FORD EXPLORER PLAINTIFFS LAWYERS CONTEND THAT FORD RUSHED THE BRONCO II INTO PRODUCTION AND RATHER THAN CORRECT DESIGN DEFECTS OPTED TO PREPARE FOR LAWSUITS INSTEAD FORD MAINTAINS THAT ITS LEGAL PREPARATIONS WERE NORMAL GIVEN THE HIGH NUMBER OF LAWSUITS OVER SAFETY AGAINST ALL MAKERS OF LIGHT UTILITY SPORTS VEHICLES FORMER MANHATTAN US ATTORNEY OTTO OBERMAIER JOINED THE NEW YORK LAW FIRM WEIL GOTSHAL & MANGES MR OBERMAIER WAS A SECURITIES AND CRIMINALDEFENSE ATTORNEY AT THE NEW YORK FIRM NOW KNOWN AS MORVILLO ABRAMOWITZ GRAND IASON & SILBERBERG BEFORE HE WAS APPOINTED US ATTORNEY IN 1989 HIS PREDECESSOR WAS RUDOLPH GIULIANI WHO INITIATED SOME OF THE MAJOR WALL STREET CASES OF THE 1980S AND STEPPED DOWN TO GO INTO POLITICS MR OBERMAIER RESIGNED AS US ATTORNEY IN FEBRUARY AFTER THE CHANGE IN PRESIDENTIAL ADMINISTRATIONS HIS SUCCESSOR HASN'T BEEN NAMED YET AS A PARTNER AT WEIL GOTSHAL MR OBERMAIER WILL WORK IN SEVERAL AREAS OF LITIGATION INCLUDING WHITECOLLAR CRIME AND SECURITIES LAW STEPHEN DANNHAUSER EXECUTIVE PARTNER OF THE 600ATTORNEY FIRM PRAISED MR OBERMAIER'S EXPANSIVE LITIGATION EXPERIENCE IN BOTH CRIMINAL AND CIVIL MATTERS SOLLYPHOBIA A FEDERAL JUDGE WASN'T CONVINCED BY FORMER SALOMON INC TRADER PAUL MOZER'S CLAIM THAT A PHOBIA' OF THE SALOMON BROTHERS' BUILDING PREVENTS HIM FROM VISITING THE OFFICES OF THE SECURITIES AND EXCHANGE COMMISSION NOW HOUSED IN THE SAME BUILDING US DISTRICT JUDGE ROBERT P PATTERSON DENIED MR MOZER'S REQUEST THAT THE SEC QUESTION HIM AT ANOTHER LOCATION ABOUT HIS ALLEGED ROLE IN THE SALOMON TREASURYAUCTION SCANDAL ROBERT HAUSEN AN ATTORNEY FOR MR MOZER TOLD THE JUDGE THAT HIS CLIENT WANTED TO AVOID CONFRONTATIONS WITH SALOMON EMPLOYEES WHO MAY BELIEVE THAT MR MOZER HAS PROVIDED INFORMATION ABOUT THEM TO THE AUTHORITIES MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9303240013 930324 ECONOMY FDIC LOWERS BANKFAILURE ESTIMATE FOR 1993 BUT WON'T REDUCE PREMIUMS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN ANOTHER SIGN THAT THE WORST OF THE BANKING CRISIS IS OVER THE FEDERAL DEPOSIT INSURANCE CORP SLASHED ITS PROJECTIONS FOR BANK FAILURES THIS YEAR BUT THE AGENCY DECLINED TO REDUCE THE PREMIUMS THAT BANKS PAY TO SUPPORT THE BANK INSURANCE FUND THE FDIC YESTERDAY PROPOSED THAT PREMIUMS SHOULD REMAIN BETWEEN 23 CENTS PER 100 OF DOMESTIC DEPOSITS FOR THE HEALTHIEST BANKS AND 31 CENTS FOR WEAKER BANKS RATHER THAN LOWER PREMIUMS ON JULY 1 THE AGENCY DECIDED TO ACCELERATE ITS RECAPITALIZATION OF THE FUND WHICH INSURES DEPOSITS OF UP TO 100000 THE FUND HAS BEEN DRAINED BY A DECADE OF NUMEROUS BANK FAILURES THE FDIC PROJECTED THAT 70 TO 90 BANKS WITH TOTAL ASSETS OF 25 BILLION WILL FAIL THIS YEAR DOWN SHARPLY FROM ITS EARLIER ESTIMATE OF 120 BANK FAILURES WITH ASSETS OF 76 BILLION THE FACT THAT ITS ESTIMATE OF ASSETS IS SHRINKING FASTER THAN THE PROJECTED BANK FAILURES INDICATES THAT THE FDIC HAS REMOVED A NUMBER OF COMPARATIVELY LARGE BANKS FROM ITS LIST OF TROUBLED BANKS THE COMBINATION OF SLOWING BANK FAILURES AND HIGH PREMIUM INCOME WILL ELIMINATE THE DEFICIT IN THE BANK INSURANCE FUND THIS YEAR WHEN A CURRENT GENERAL ACCOUNTING OFFICE AUDIT IS COMPLETED THE FUND IS EXPECTED TO SHOW A DEFICIT OF 250 MILLION AT THE END OF 1992 DOWN SHARPLY FROM A 7 BILLION DEFICIT IN 1991 THE DEFICIT PROJECTIONS ARE BASED ON CONSERVATIVE ACCOUNTING PRINCIPLES THAT REQUIRE THE FDIC TO RESERVE IN ADVANCE FOR BANKS IT EXPECTS TO FAIL BANKS WANT A REDUCTION IN PREMIUMS WHICH HAVE DOUBLED SINCE 1990 BUT ACTING FDIC CHAIRMAN ANDREW HOVE SAID THE AGENCY CHOSE INSTEAD TO KEEP PREMIUMS AT CURRENT LEVELS IN ORDER TO BUILD UP THE INSURANCE FUND IN 1991 WHEN THE FDIC AND THE BANKING INDUSTRY FEARED THAT THE FUND MIGHT RUN OUT OF MONEY CONGRESS PASSED A LAW GIVING THE FUND A 30 BILLION TREASURY LINE OF CREDIT THAT LAW ALSO REQUIRED THE FDIC TO BUILD THE FUND TO 125 OF INSURED DEPOSITS WITHIN 15 YEARS LAST YEAR WHEN THE FDIC SET PREMIUMS AT THE CURRENT LEVELS IT ESTIMATED THAT IT WOULD REACH THE 125 RESERVE TARGET IN 2006 THE AGENCY NOW EXPECTS TO ACHIEVE THAT TARGET IN 2002 BUT SOME ANALYSTS CONTEND THE FDIC'S PROJECTIONS ARE TOO CONSERVATIVE BERT ELY A BANKING CONSULTANT AND THE AMERICAN BANKERS ASSOCIATION ARGUE THAT THE FDIC IS OVERESTIMATING THE NUMBER AND COST OF FUTURE BANK FAILURES AT CURRENT PREMIUM LEVELS THE FDIC WILL REBUILD THE FUND TO THE REQUIRED RESERVE LEVEL OF 125 BY 1996 MR ELY PREDICTS THEY'RE PERPETUATING UNNECESSARILY NEGATIVE IMAGES OF BANKING AND THE INSURANCE FUND WITH UNREALISTICALLY SCARY LOSS PROJECTIONS AT A TIME WHEN BANKS ARE EARNING RECORD PROFITS MR ELY SAID HE ADDED THAT THE FDIC PROJECTIONS COULD DISCOURAGE CONGRESS FROM ACTING ON BANKING INDUSTRY PROPOSALS TO SCALE BACK REGULATIONS THAT BANKS INSIST INHIBIT LENDING THE FDIC'S FLEXIBILITY TO LOWER PREMIUMS IS LIMITED THE AGENCY REVIEWS THE PREMIUM LEVEL EVERY SIX MONTHS BUT STARTING JAN 1 1994 THE LAW PREVENTS THE FDIC FROM REDUCING THE AVERAGE PREMIUM LEVEL BELOW 23 CENTS FOR EACH 100 OF DOMESTIC DEPOSITS UNTIL THE FUND REACHES 125 OF INSURED DEPOSITS THE AVERAGE PREMIUM LEVEL CURRENTLY IS 251 CENTS THOUGH THE 23CENT TO 31CENT PREMIUM RANGE WON'T CHANGE THE AVERAGE PREMIUM WILL FALL TO 246 CENTS IN THE SECOND HALF OF THE YEAR AS MORE BANKS GET STRONGER AND MIGRATE TO THE HEALTHY LOWEST PREMIUM CATEGORY THE BANKING INDUSTRY WILL PAY AN ESTIMATED 605 BILLION IN PREMIUMS THIS YEAR THE AGENCY ASKED FOR PUBLIC COMMENT WITHIN 30 ON ITS DECISION NOT TO CHANGE PREMIUMS ON JULY 1 9303240012 930324 SECOR BANK TO BUY PREFERRED BIRMINGHAM ALA SECOR BANK FSB SAID IT ENTERED INTO A DEFINITIVE PACT WITH THE FEDERAL DEPOSIT INSURANCE CORP TO BUY 533 MILLION OF THE BANK'S PREFERRED STOCK THAT IS HELD BY AN FDIC FUND THE PURCHASE WILL HELP THE THRIFT SEVER TIES WITH THE FDIC IT HAS HAD SINCE THE FUND HELPED IT BUY FIRST FINANCIAL BANK NEW ORLEANS IN 1987 IT WILL ALSO RELIEVE SECOR OF HAVING TO PAY ABOUT 18 MILLION IN DIVIDENDS THAT HAD ACCUMULATED ON THE PREFERRED STOCK SAID F EUGENE WOODHAM CHIEF FINANCIAL OFFICER 9303240011 930324 BUSINESS BRIEF HAWTHORNE FINANCIAL CORP THRIFT RESTATES RESULTS TO 3RDQUARTER NET LOSS HAWTHORNE FINANCIAL CORP SAID IT RESTATED ITS THIRDQUARTER RESULTS TO A NET LOSS OF 305 MILLION OR 1175 A SHARE LAST MONTH THE THRIFT HOLDING COMPANY IN HAWTHORNE CALIF SAID THE RESTATEMENT WOULD PUT THE LOSS AT 50 MILLION THE NARROWER LOSS FIGURE REPORTED YESTERDAY REFLECTS THE INCLUSION OF TAX BENEFITS THE COMPANY SAID THE COMPANY IN LATE OCTOBER HAD REPORTED THIRDQUARTER NET INCOME OF 15 MILLION OR 57 CENTS A SHARE BUT A REQUIREMENT BY THE OFFICE OF THRIFT SUPERVISION LATER MANDATED THAT THE HOLDING COMPANY'S MAIN UNIT HAWTHORNE SAVINGS & LOAN ASSOCIATION INCREASE ITS LOSS RESERVES BY ABOUT 54 MILLION 9303240010 930324 BUSINESS BRIEF DRESS BARN INC EARNINGS EXPECTED TO BE FLAT IN THE FISCAL THIRD QUARTER DRESS BARN INC SAID EARNINGS FOR THE FISCAL THIRD QUARTER ENDING IN LATE APRIL ARE NOW ESTIMATED TO BE FLAT WITH LAST YEAR WHEN THE COMPANY EARNED 48 MILLION OR 22 CENTS A SHARE THE WOMEN'S APPAREL RETAILER SAID THE ESTIMATE IS A RESULT OF UNFAVORABLE WEATHER CONDITIONS IN MOST REGIONS OF THE COUNTRY PARTICULARLY IN THE NORTHEAST WHERE IT HAS A MAJOR CONCENTRATION OF STORES HOWEVER THE STAMFORD CONN COMPANY SAID IT IS OPTIMISTIC THAT WITH BETTER WEATHER FOURTHQUARTER PERFORMANCE WILL CONTINUE THE MOMENTUM SHOWN IN THE FISCAL FIRST HALF ENDED JAN 23 IN THE HALF COMPARABLE SALES WERE UP 7 AND NET INCOME INCREASED 57 TO 89 MILLION OR 40 CENTS A SHARE FROM 57 MILLION OR 26 CENTS A SHARE A YEAR EARLIER THE COMPANY ALSO ANNOUNCED THAT IT OPENED 12 NEW STORES SATURDAY 9303240009 930324 REVIEW & OUTLOOK EDITORIAL TAX TREMORS CONVENTIONAL WISDOM HAS IT IN FACT IT CAN'T STOP SAYING THAT THE PROGRAMS AND PLATFORM THAT ELECTED RONALD REAGAN IN 1980 AND 1984 AREN'T POPULAR WITH THE VOTERS ANYMORE WE GUESS THAT'S WHY THE CONVENTIONAL WISDOM ISN'T GOING OUT OF ITS WAY TO NOTICE THAT SOME RECENT CANDIDATES ARTICULATING REAGANITE THEMES ARE WINNING AGAIN IN THE PAST MONTH REPUBLICANS HAVE SURPRISED ANALYSTS BY CAPTURING NORMALLY SAFE DEMOCRATIC STATE SENATE SEATS IN MICHIGAN ALABAMA AND CONNECTICUT IN MISSOURI THEY WON TWO SEATS FORMERLY HELD BY DEMOCRATS ALL POLITICS MAY BE LOCAL BUT IT'S GENERALLY AGREED THAT THE MOST IMPORTANT FACTOR IN EACH RACE WAS A DISCERNIBLE PUBLIC RESISTANCE TO TAX INCREASES THOSE TAX TREMORS MAY PARTLY EXPLAIN THE DOWNDRAFT ON PRESIDENT CLINTON'S APPROVAL RATINGS THE LATEST HARRIS POLL SHOWS 44 OF THE PUBLIC NOW RATES HIM NEGATIVELY UP FROM 31 IN JANUARY THE MOST IMPRESSIVE ANTITAX VICTOR WAS REPUBLICAN JOEL GOUGEON IN A STATE SENATE RACE IN BAY CITY MICHIGAN LAST WEEK NO REPUBLICAN HAS REPRESENTED BAY CITY THE GRITTY FACTORY TOWN WHERE MADONNA GREW UP FOR 20 YEARS CLEARLY SOMETHING'S CHANGING IN FACT MR GOUGEON RAN IN THE SAME AREA FOR THE MICHIGAN HOUSE LAST NOVEMBER BUT WON ONLY 40 OF THE VOTE THIS TIME HE WON 53 OF THE VOTE IN A PROUNION DISTRICT THAT VOTED FOR MICHAEL DUKAKIS IN 1988 AND GAVE GEORGE BUSH ONLY 33 OF THE VOTE LAST YEAR THE REAGAN DEMOCRATS WHO ABANDONED THE NONREAGANITE BUSH PRESIDENCY MAY BE TRYING TO SEND THE DEMOCRATS A SIGNAL MR GOUGEON CREDITS HIS VICTORY TO HIS SUPPORT FOR GOVERNOR JOHN ENGLER'S ACROSSTHEBOARD PROPERTYTAX CUT HE ALSO FOUND MANY PEOPLE HAD MISGIVINGS ABOUT THE CLINTON ECONOMIC PROGRAM HIS DEMOCRATIC OPPONENT BAY CITY POLICE OFFICER TERRY WATSON USED THE NATIONAL DEMOCRATIC PARTY'S CURRENTLY POPULAR CLASS WARFARE THEME ATTACKING HIS OPPONENT AS A WEALTHY BUSINESSMAN THE CLASSENVY ROUTINE FLOPPED MR GOUGEON WON BLUECOLLAR VOTES WITH HIS ANTITAX AND SOCIALLY CONSERVATIVE STANDS HE HIGHLIGHTED HIS BACKING OF SCHOOL VOUCHERS AND POINTED OUT HIS OPPONENT WAS BACKED BY THE TEACHERS' UNIONS IT'D BE PREMATURE TO CLAIM THAT VOTERS ARE READY TO REJECT ANY CANDIDATES WHO BACK HIGHER TAXES BUT CONGRESSIONAL DEMOCRATS ARE AT LEAST WORRIED MANY HAD TO HAVE THEIR ARMS TWISTED TO BACK BILL CLINTON'S 16 BILLION EMERGENCY STIMULUS SPENDING PACKAGE IT'LL GET MORE THAN WORRISOME IF REPUBLICAN CANDIDATES WHO RETURN TO THE ELECTORALLY SUCCESSFUL REAGAN THEMES START WINNING ELECTIONS ON THE DEMOCRATS' HOME TURF DEMOCRATS WILL BE WATCHING FOR CLUES TO THE VOTERS' MOOD IN COMING ELECTIONS FOR THE HOUSE OF REPRESENTATIVES IN WISCONSIN AND CALIFORNIA AND THE US SENATE RACE IN TEXAS RECALL THAT JIMMY CARTER'S VULNERABILITIES SURFACED WHEN REPUBLICANS WON A SERIES OF UPSET ELECTIONS DURING HIS FIRST YEAR IN OFFICE VOTERS MAY GENERALLY WISH BILL CLINTON WELL BUT MANY MAY BE PREPARING TO SEND HIM AN ANTITAX MESSAGE THE FIRST CHANCE THEY GET TO ENTER A VOTING BOOTH 9303240008 930324 CONTINENTAL AIR'S PRESIDENT QUITS HOUSTON AP LEWIS JORDAN CONTINENTAL AIRLINES' PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED THE CARRIER ANNOUNCED MR JORDAN'S RESIGNATION YESTERDAY WAS EFFECTIVE IMMEDIATELY A CONTINENTAL SPOKESWOMAN SAID A SUCCESSOR HASN'T BEEN NAMED SHE ADDED ROBERT FERGUSON CONTINENTAL'S CHIEF EXECUTIVE OFFICER SAID MR JORDAN RESIGNED TO PURSUE OTHER INTERESTS THE CARRIER IS A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC 9303240007 930324 REVIEW & OUTLOOK EDITORIAL ASIDES MARIJUANA TULIPS WE'RE SEEING MANY INNOVATIVE SOLUTIONS TO THE DRUG CRISIS IN CALIFORNIA A CITIZEN'S GROUP DUMPED NEARLY 15400 POUNDS OF MANURE INTO A PARK SO THAT THE SMELL WOULD DRIVE OUT DRUG DEALERS THE DUTCH PRESS REPORTED YESTERDAY ON A PROPOSAL BY THE LABOR PARTY THAT WOULD MAKE THE GROWING AND SELLING OF SOFT DRUGS A STATE INDUSTRY THIS COULD BE ONE OF THE MOST SOUGHT AFTER GOVERNMENT MINISTRIES NEWLY ENERGIZED BUREAUCRATS DEVELOPING POTENT STRAINS OF MARIJUANA PARLIAMENTARY COMMITTEES ENSURING THAT CONSUMER NEEDS WERE FULLY SATISFIED THE PRIME MINISTER TAKING SERIOUSLY HIS NEW ROLE AS DRUGDEALERINCHIEF OTHER DUTCH PARTIES HAVE CRITICIZED LABOR'S PROPOSAL 9303240006 930324 MERCK EXPECTS SLOWER PROFIT WILL CUT STAFF SHARES OF DRUG COMPANIES ARE EXPECTED TO REACT TO COMPANY STATEMENT BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WHITEHOUSE STATION NJ MERCK & CO SAID IT WILL CUT ITS WORK FORCE 26 THIS YEAR ITS FIRST SUCH MOVE EVER AND EXPECTS 1993 EARNINGS TO COME IN AT THE LOW END OF ANALYSTS' EXPECTATIONS THE PHARMACEUTICAL GIANT BLAMED THE INCREASINGLY TURBULENT COMPETITIVE ENVIRONMENT IN THE UNITED STATES HEALTHCARE COSTCONTAINMENT MEASURES WORLDWIDE AND THE UNFAVORABLE EFFECTS OF FOREIGN CURRENCIES THE ANNOUNCEMENT WAS MADE AFTER THE MARKET CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MERCK CLOSED AT 37 A SHARE UP 125 ON VOLUME OF 32 MILLION SHARES THERE WAS A BULLISH REFERENCE TO MERCK IN YESTERDAY'S HEARD ON THE STREET COLUMN IN THIS NEWSPAPER HOWEVER THE COMPANY'S LATEST NEWS IS LIKELY TO SEND THE STOCK LOWER TODAY AS ANALYSTS REVISE THEIR ESTIMATES ACCORDINGLY HEMANT SHAH AN INDEPENDENT ANALYST SAID THE STOCK WILL ALMOST CERTAINLY DECLINE TODAY BECAUSE OF THE ANNOUNCEMENT AND MAY AFFECT OTHER DRUG STOCKS AS WELL ANALYST ROBERT C HODGSON OF COWEN & CO SAID MERCK WANTED TO MAKE SURE PEOPLE GOT THE WORD LOUD AND CLEAR THAT THE ENVIRONMENT GOING FORWARD ISN'T THE SAME AS IN THE LAST FIVE YEARS MOREOVER FACTORS AFFECTING MERCK THE LARGEST DRUG COMPANY IN THE WORLD ARE PROBABLY FELT AT OTHER COMPANIES AS WELL HE ADDED MERCK TOLD ANALYSTS THAT ITS 1993 EARNINGS GROWTH WILL BE AT THE LOW END OF THEIR PROJECTIONS OF 11 TO 16 AND THAT FIRSTQUARTER EARNINGS GROWTH WILL BE BELOW EXPECTATIONS WALL STREET ANALYSTS HAD BEEN ESTIMATING FIRSTQUARTER EARNINGS OF ABOUT 55 CENTS A SHARE UP 12 FROM THE 48 CENTS A SHARE EARNED A YEAR AGO ACCORDING TO ZACKS INVESTMENT RESEARCH FOR THE YEAR ESTIMATES AVERAGED 244 A SHARE UP 135 FROM THE 215 A SHARE EARNED FROM OPERATIONS IN 1992 MERCK'S EARNINGS HAD BEEN CONSIDERED ONE OF THE MOST PREDICTABLE IN THE DRUG INDUSTRY AND THE FACT THE MAJOR DRUG MAKER DECIDED TO GUIDE WALL STREET ANALYSTS DOWNWARD IN THEIR ESTIMATES SHOWS THE UNCERTAINTY FACING THE INDUSTRY OVERALL OTHER DRUG COMPANIES INCLUDING MARION MERRELL DOW INC AND ELI LILLY & CO HAVE SAID RECENTLY THAT EARNINGS WILL BE DISAPPOINTING P ROY VAGELOS MERCK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IT SHOULD BE PRETTY OBVIOUS LOOKING AT THE WHOLE INDUSTRY THAT THE WHOLE INDUSTRY IS MODERATING HE ADDED THAT COMPETITION HAS GROWN THROUGHOUT MERCK'S PRODUCT LINE EXCEPT WHERE IT HAS THE ONLY DRUG IN THE MARKET COMPETITION IS A WAY OF LIFE IN THE PHARMACEUTICAL INDUSTRY MORE THAN EVER BEFORE HE ADDED THE EXECUTIVE'S COMMENTS WERE IN LINE WITH THE DRUG INDUSTRY'S ARGUMENT THAT THE DRUG PRICE CONTROLS BEING DISCUSSED IN WASHINGTON ARE UNNECESSARY BECAUSE COMPETITION ALREADY IS WORKING TO HOLD DOWN PRICES FOR THE FIRST TIME MERCK WILL REDUCE ITS WORK FORCE THROUGH CORPORATEWIDE EARLY RETIREMENT AND OTHER PROGRAMS THE MEASURES ARE EXPECTED TO SHRINK ITS WORLDWIDE EMPLOYMENT PRIMARILY IN MANUFACTURING OPERATIONS AND CORPORATE STAFF THIS YEAR BY 1000 PEOPLE OR 26 OF ITS 38400 EMPLOYEES THE COST OF THE PROGRAMS WILL RESULT IN AN EXTRAORDINARY CHARGE TO EARNINGS AT A LATER DATE LOSSES ON FOREIGNEXCHANGE TRANSLATIONS COULD REDUCE EARNINGS THREE PERCENTAGE POINTS A MERCK SPOKESMAN SAID BY COMPARISON CURRENCY TRANSLATIONS HELPED SALES LAST YEAR ADDING A PERCENTAGE POINT HE ADDED THE COMPANY'S CHOLESTEROLREDUCING DRUGS MEVACOR AND ZOCOR ARE FACING STIFF COMPETITION FROM BRISTOLMYERS SQUIBB CO'S PRAVACHOL AND MEVACOR IS LOSING MARKET SHARE A SPOKESMAN SAID SALES OF MEVACOR AND MERCK'S PROSTATEGLAND TREATMENT PROSCAR ARE BELOW EXPECTATIONS DR VAGELOS SAID THE COMPANY IS STEPPING UP PROMOTIONAL EFFORTS FOR MEVACOR AND VASOTEC A HEART DRUG THAT HAS COME UNDER INCREASING COMPETITION FROM LOWERPRICED ALTERNATIVES HE ADDED AND THE COMPANY IS SEEING A VERY NICE RESPONSE MOREOVER PRICE CONTROLS IN GERMANY ONE OF THE LARGEST PRESCRIPTIONDRUG MARKETS IN THE WORLD HAVE RESULTED IN A SIGNIFICANT SLOWING IN SALES THE SPOKESMAN SAID MERCK INTENDS TO HIT ITS TARGETED SALES VOLUME GROWTH OF 8 TO 12 THIS YEAR THE SPOKESMAN SAID DR VAGELOS SAID HE'S OPTIMISTIC ABOUT THE COMPANY'S PROSPECTS OVER THE LONG TERM BUT SAID THAT IN THE SHORT TERM WE HAVE TO ADAPT TO A SYSTEM WE DON'T QUITE SEE YET BUT WE'RE ADAPTABLE FOLKS AND I THINK WE WILL DO IT 9303240005 930324 AT&T TO REDEEM FIVE DEBT ISSUES EARLY TOTALING 175 BILLION NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WILL REDEEM FIVE DEBT ISSUES TOTALING 175 BILLION A MOVE THAT WILL ENABLE IT TO REDUCE INTEREST COSTS THE EARLY REDEMPTION WILL RESULT IN A CHARGE OF ABOUT 536 MILLION OR FOUR CENTS A SHARE IN THE 1993 FIRST QUARTER HOWEVER LOWER INTEREST EXPENSE IN SUBSEQUENT QUARTERS WILL REDUCE THE FULLYEAR 1993 IMPACT TO LESS THAN 268 MILLION OR TWO CENTS A SHARE THE REFUNDING IS EXPECTED TO INCREASE EARNINGS BY AS MUCH AS 402 MILLION OR THREE CENTS A SHARE BEGINNING IN 1994 AT&T SAID IT WILL USE CASH RESERVES AND PROCEEDS FROM NEW DEBT ISSUES TO FUND THE REDEMPTION AT&T CALLED THREE ISSUES YESTERDAY WHICH HAVE REDEMPTION DATES OF APRIL 22 THEY INCLUDE 300 MILLION OF 8625 AT&T DEBENTURES ISSUED APRIL 1 1986 AND DUE TO MATURE APRIL 1 2026 TO BE REDEEMED AT 10579 PLUS INTEREST 350 MILLION OF 7125 AT&T DEBENTURES ISSUED DEC 1 1972 AND DUE TO MATURE DEC 1 2003 REDEEMABLE AT 10159 PLUS INTEREST AND 500 MILLION OF 7 AT&T DEBENTURES ISSUED FEB 15 1971 AND DUE TO MATURE FEB 15 2001 REDEEMABLE AT 10075 PLUS INTEREST UNDER TERMS OF THE 1984 BELL SYSTEM DIVESTITURE AT&T SAID IT ASSUMED FINANCIAL RESPONSIBILITY FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON THE LATTER DEBENTURES PACIFIC BELL WILL ISSUE THE FORMAL CALL NOTICE AND MANAGE THE REDEMPTION THE DEBENTURES WILL BE REDEEMED AT 10484 PLUS INTEREST 9303240004 930324 MARKETING DIRECT MARKETING DISPATCHES BY LAURA BIRD THE DIFFERENCE BETWEEN ONE BOOKOFTHEMONTH CLUB AD AND ANOTHER LONG AMOUNTED TO LITTLE MORE THAN A NEW WAY TO SAY 4 BOOKS FOR 1 NOW A DIRECTRESPONSE CAMPAIGN FOR THE BIG TIME WARNER UNIT GOES BEYOND THE CUSTOMARY COMEON FOCUSING AS MUCH ON SELLING THE CLUB'S IMAGE AS ON SNARING NEW MEMBERS THE CAMPAIGN AIMS TO ENHANCE THE CLUB'S LONGTERM APPEAL TO BOTH CURRENT AND PROSPECTIVE MEMBERS AS OPPOSED TO SIGNING UP A FLOOD OF NEWCOMERS LIKELY TO DROP OUT IN A MATTER OF MONTHS WITH TURNOVER AMONG BOOK CLUBS APPROACHING 30 A YEAR IN SOME CASES BOOKOFTHEMONTH CLUB WON'T DISCLOSE ITS TURNOVER RATE CLUBS ARE LOOKING FOR WAYS TO PROMOTE STABILITY THE NEW ADS STILL HOLD OUT LOWCOST BOOKS AS BAIT BUT WITH THE CLUB FACING GROWING COMPETITION FROM OUTLETS THAT OFFER DEEP DISCOUNTS THE CAMPAIGN ALSO PORTRAYS BOOKOFTHEMONTH CLUB AS MORE THAN JUST ANOTHER PLACE TO GET BOOKS CHEAP IT STRIVES TO GIVE MEMBERS REASONS TO STAY BY HIGHLIGHTING THE CLUB'S SERVICES SUCH AS TOLLFREE TELEPHONE ORDERING AND HELP IN TRACKING DOWN HARDTOFIND BOOKS EVEN THOSE NEVER CARRIED BY THE CLUB THE CAMPAIGN CREATED BY WPP GROUP'S OGILVY & MATHER DIRECT INVITES CONSUMERS TO BUY INTO THE CLUB FOR THE LONG TERM AS OPPOSED TO GET YOUR FREE BOOKS AND QUIT' SAYS LAURIE PETERSEN EDITOR OF THE COWLES REPORT ON DATABASE MARKETING AND MANAGEMENT A NEWSLETTER THAT REPORTS ON DIRECT MARKETING BY PUSHING THE SERVICE SIDE THE ADS ATTRACT PEOPLE WHO HAVE A MINDSET OF STAYING THEY GET A MORE PROFITABLE CUSTOMER FROM THE OUTSET A PRINT AD THAT RAN RECENTLY IN TRAVEL & LEISURE MAGAZINE AND THE NEW YORK TIMES BOOK REVIEW EMPHASIZES THAT THE CLUB IS IN IT FOR THE LONG HAUL THE AD FEATURES A PHOTO OF A YOUTHFUL ERNEST HEMINGWAY AND NOTES THAT THE SUN ALSO RISES WAS A CLUB SELECTION IN 1926 ITS FIRST YEAR IN BUSINESS FRANKLY HE SCARED US BUT WE WENT AHEAD ANYWAY SAYS THE AD WHICH INCLUDES A COUPON OFFERING FOUR BOOKS FOR 1 THOUGH SOME COSTCONSCIOUS ADVERTISERS THINK OF DIRECT MARKETING AS THE THRIFTY ALTERNATIVE TO MASS MEDIA CREATIVE WORK IN THE FIELD CAN BE EVERY BIT AS EXTRAVAGANT WITNESS THE DIRECT MAILING SEAGRAM CLASSICS WINE A UNIT OF SEAGRAM SENT OUT LAST FALL ON BEHALF OF ITS VINTAGE 1985 MUMM GRAND CORDON CHAMPAGNE TEN THOUSAND IMPORTANT PROSPECTS RECEIVED A LIMITED EDITION LITHOGRAPH OF AN ARTSY VERSION OF THE CHAMPAGNE LABEL PRINTED ON MUSEUMQUALITY ACIDFREE ARCHIVAL PAPER AND SUITABLE FOR FRAMING SEAGRAM ESTIMATES THE MAILING COST 10 A PACKAGE A PERSONALIZED LETTER INFORMED RECIPIENTS THAT A FREE BOTTLE OF THE 1985 PRESTIGE CUVEE HAD BEEN SET ASIDE IN YOUR NAME HERE IN THE CELLARS OF CHAMPAGNE MUMM FREE OF CHARGE ALL YOU HAVE TO DO IS SHOW UP A GENEROUS OFFER IT SEEMS GIVEN THAT THE VINTAGE SELLS FOR ABOUT 100 A BOTTLE THE CATCH THE CELLARS ARE IN REIMS AS IN FRANCE BUT FOR THOSE WHO DON'T WANT TO HOP ON A CONCORDE THERE IS ANOTHER OPTION THEY CAN REQUEST A LIST OF LOCAL RETAILERS WHERE THEY CAN BUY THE PRICEY VINTAGE THEMSELVES THE FREEBOTTLE OFFER IS INTENDED AS HYPERBOLE SAYS ROBERT SOLOMON SENIOR VICE PRESIDENT AT FOOTE CONE & BELDING COMMUNICATIONS' FCB DIRECT THE AGENCY THAT CREATED THE CAMPAIGN IT'S DESIGNED TO MAKE A STATEMENT MORE THAN TO GET A RESPONSE BUT RESPONSES IT GOT SEAGRAM AND FOOTE CONE HAD EXPECTED PERHAPS 200 PEOPLE A 2 RESPONSE RATE TO RESERVE A BOTTLE OR SEND IN FOR RETAILER NAMES TO DATE SEAGRAM HAS RECEIVED 580 INQUIRIES CLOSE TO A 6 RESPONSE AND 170 OF THEM HAVE PUT IN FOR A TRANSATLANTIC RESERVATION FOR A BOTTLE OF THE BUBBLY AUTOGRAPHED BASEBALLS DELIVER SALES PITCHES FROM A NEW JERSEY COMMERCIAL LENDER CIT GROUP LIVINGSTON NJ SENDS BASEBALLS AUTOGRAPHED BY THE BASEBALL LEGEND WILLIE MAYS TO CHIEF EXECUTIVES AND CHIEF FINANCIAL OFFICERS AT FORTUNE 1000 COMPANIES THE SOUVENIR COMES IN A WOODEN DISPLAY BOX THAT HAS ROOM FOR THREE BALLS IN ALL ENCLOSED IN THE CIT MAILING IS A SALES LETTER FROM THE LENDER'S CHIEF EXECUTIVE ALBERT R GAMPER JR PLEASE KEEP THE CIT GROUP IN MIND WHEN YOUR FINANCING NEEDS ARISE IT DISCREETLY REQUESTS AFTER MENTIONING THAT BASEBALLS AUTOGRAPHED BY TWO OTHER HALL OF FAMERS STAN MUSIAL AND MICKEY MANTLE ARE ALSO AVAILABLE AS PART OF CIT'S SIGNATURE SERIES TO GET THE MUSIAL BALL PROSPECTS NEED ONLY FILL OUT A REPLY CARD THEN COMES THE SLIDER THE MANTLE BALL CAN BE HAD ONLY THROUGH HAND DELIVERY BY A CIT SALES REPRESENTATIVE AT A PERSONAL APPOINTMENT WITH THE PROSPECT LAST YEAR CIT DELIVERED ALL THREE BALLS TO 89 OF 96 PROSPECTS IT TARGETED SO THIS YEAR THE COMPANY IS EXPANDING THE PITCH THE INITIAL EFFORT COST ABOUT 17000 CIT SAYS AND HELPED GENERATE 60 MILLION IN NEW LOANS A HOME RUN BY ALMOST ANY STANDARDS JAGUAR IS INVITING LIKELY CUSTOMERS TO TAKE A TEST DRIVE WITH A DIRECTMAIL CAMPAIGN THAT ASKS IS THE HONEYMOON OVER THE FORD MOTOR UNIT'S BROCHURE UNFOLDS INTO A NEARLY FOURFOOTLONG SHOT OF A JAGUAR IT ALSO ASKS READERS LEADING QUESTIONS ABOUT THEIR CURRENT CAR DOES A TRIP TO THE DRY CLEANERS THRILL YOU THE WAY IT USED TO WOULD YOU LET YOUR BROTHERINLAW DRIVE IT PHILIP MORRIS'S KRAFT GENERAL FOODS UNIT IS RUNNING DIRECTRESPONSE MAGAZINE ADS FOR MAXWELL HOUSE COLUMBIAN ROAST COFFEE OFFERING A FREE SAMPLE TO READERS WHO CALL OR SEND IN MAXWELL HOUSE WANTS TO KNOW HOW MANY CUPS OF COFFEE RESPONDENTS PREPARE AT HOME EACH DAY 9303240003 930324 WHO'S NEWS WAREHOUSE CLUB INC WAREHOUSE CLUB INC CHICAGO BARBARA SEGERS FORMERLY NATIONAL CATALOG MARKETING MANAGER OF SEARS ROEBUCK & CO WAS NAMED TO THE NEW POST OF VICE PRESIDENT MARKETING OF THIS OPERATOR OF MEMBERSONLY WAREHOUSE STORES 9303240002 930324 F&C INTERNATIONAL TO SELL UNIT CINCINNATI F&C INTERNATIONAL INC SAYING IT WANTS TO FOCUS ON ITS FLAVOR BUSINESS SAID IT PUT ITS FRAGRANCE OPERATIONS ON THE BLOCK THE FRAGRANCE UNIT MAKES UP ABOUT 20 OF F&C'S SALES WHICH TOTALED 579 MILLION IN THE YEAR ENDED JUNE 30 AN OFFICIAL SAID F&C HOPES TO COMPLETE THE SALE BY JUNE 30 THE COMPANY HAS HIRED PAINEWEBBER INC AS AN ADVISER ON THE TRANSACTION 9303240001 930324 MARKETING & MEDIA TIME WARNER PICKS CHIEF FOR MAGAZINES OF AMERICAN EXPRESS NEW YORK TIME WARNER INC NAMED DAN BREWSTER CHIEF EXECUTIVE OFFICER OF THE AMERICAN EXPRESS CO MAGAZINE GROUP THAT TIME WARNER WILL MANAGE IN A JOINT VENTURE BETWEEN THE TWO COMPANIES WHILE MR BREWSTER WILL HEAD THE GROUP AN ADVISORY BOARD OF EXECUTIVES FROM TIME WARNER AND AMERICAN EXPRESS WILL OVERSEE TIME WARNER'S MANAGEMENT OF THE TITLES MR BREWSTER PARTICIPATED IN THE LONG JOINTVENTURE NEGOTIATIONS AND WAS MOST RECENTLY ASSOCIATE PUBLISHER AND GENERAL MANAGER OF LIFE MAGAZINE MANAGEMENT RESPONSIBILITY FOR THE TITLES WILL FALL TO THE LOS ANGELESBASED TIME INC VENTURES UNIT WHICH INCLUDES REGIONAL AND SPECIAL INTEREST MAGAZINES IN FINALIZING THE MANAGEMENT AGREEMENT YESTERDAY AMERICAN EXPRESS ALSO MADE CLEAR THAT TIME WARNER'S TIME INC PUBLISHING UNIT WILL HAVE SOME LIMITED ACCESS TO THE COVETED DATABASE OF AMERICAN EXPRESS CARDHOLDER NAMES FOR SOLICITING SUBSCRIPTIONS UNDER THE DEAL AMERICAN EXPRESS TRAVEL RELATED SERVICES CO GAVE TIME WARNER IMMEDIATE MANAGEMENT CONTROL OVER MOST OF AMERICAN EXPRESS PUBLISHING CORP'S OPERATIONS INCLUDING TRAVEL & LEISURE FOOD & WINE AND THREE OTHER CUSTOM PUBLICATIONS FOR VARIOUS CARDHOLDER GROUPS AND CUSTOMERS AMERICAN EXPRESS RETAINS OVERSIGHT OF CITY MAGAZINES D IN DALLAS AND ATLANTA WHICH A SPOKESMAN SAID THE COMPANY IS STILL TRYING TO SELL LAST MONTH AMERICAN EXPRESS SOLD LA STYLE MAGAZINE WHICH HAD BEEN SHUT DOWN AND EARLY LAST YEAR IT FOLDED NEW YORK WOMAN MAGAZINE TIME INC WILL RECEIVE AN ANNUAL FLAT FEE FOR MANAGING AMERICAN EXPRESS'S TITLES AS WELL AS ADDITIONAL FEES FOR IMPROVING THEIR PROFITS TIME INC MAGAZINES WON'T HAVE DIRECT ACCESS TO CARD MEMBER LISTS BUT CAN DO SUBSCRIPTION MAILINGS TO CARD MEMBERS HOWEVER AN AMERICAN EXPRESS SPOKESMAN SAID THE MAILINGS MUST FIRST BE APPROVED UNDER STRICT RULES THAT ENSURE THE SECURITY OF THE DATA AND THE PRIVACY OF CARD MEMBERS THE SPOKESMAN ADDED THAT CARD MEMBERS WHO DIDN'T WANT THEIR NAMES AVAILABLE FOR SUCH SUBSCRIPTION PROMOTIONS COULD HAVE THEIR NAMES TAKEN OFF THE LIST 9303240133 930211 STEELIMPORT CURBS COST US ECONOMY BILLIONS IN 1980S ACCORDING TO STUDY BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RESTRICTIONS ON STEEL IMPORTS TO THE US COST THE ECONOMY ALMOST 1 BILLION ANNUALLY DURING THE 1980S ACCORDING TO A STUDY BY AN ECONOMIC THINKTANK THAT USUALLY BACKS TRADE PROTECTION IN UNDERSCORING THE COSTS OF THE SOCALLED VOLUNTARY RESTRAINT AGREEMENTS THE ECONOMIC POLICY INSTITUTE POKES HOLES IN A LONGFAVORED STRATEGY FOR SHIELDING THE STRUGGLING US STEEL INDUSTRY AS WELL AS THE AUTO INDUSTRY THERE IS NO FREE LUNCH SAID ROBERT BLECKER AN ECONOMIST AT THE INSTITUTE THERE IS A COST IF YOU'RE GOING TO GET THE BENEFITS OF SAVING JOBS AND GIVING THE INDUSTRY THE BREATHING ROOM NEEDED TO MODERNIZE AND BECOME EFFICIENT HE ADDED THAT VOLUNTARY RESTRAINT AGREEMENTS WERE AN EXCESSIVELY COSTLY FORM OF PROTECTION FROM A NATIONAL VIEW POINT THE STUDY WHICH LOOKED AT THE EFFECT OF THE RESTRICTIONS FROM 1984 TO 1989 CONCLUDED THE RESTRAINTS ACTUALLY HELPED FOREIGN STEEL PRODUCERS IT ESTIMATED THEY COLLECTED ABOUT 868 MILLION ANNUALLY IN EXTRA REVENUE BECAUSE STEEL PRICES ROSE WITH THE INTRODUCTION OF THE IMPORT RESTRAINTS IF SUCH RESTRICTIONS ARE AGAIN INTRODUCED FOREIGN COMPANIES STAND TO MAKE A MINT SAID MR BLECKER IN CONTRAST THE INSTITUTE CONCLUDED THAT VOLUNTARY RESTRAINT AGREEMENTS COST THE US ECONOMY 984 MILLION ANNUALLY DURING THAT PERIOD AND HAD BENEFITS AVERAGING 246 MILLION A YEAR TO US STEEL COMPANIES AND EMPLOYEES THE STUDY'S RESULTS ARE PARTICULARLY INTERESTING BECAUSE THEY AREN'T FROM THE USUAL CRITICS OF TRADE PROTECTION THE ECONOMIC POLICY INSTITUTE IS BACKED BY LABOR UNIONS AND TYPICALLY ARGUES FOR SOCALLED MANAGED TRADE WHICH INCLUDES CALLS FOR PROTECTION SUCH AS VOLUNTARY RESTRAINT AGREEMENTS TARIFFS OR QUOTAS THE THINKTANK STILL ADVOCATES PROTECTION FOR US STEELMAKERS JUST DIFFERENT TYPES IT'S RECOMMENDING TARIFFS AND SOCALLED AUCTION QUOTAS UNDER AUCTION QUOTAS THE US WOULD SET A LIMIT ON STEEL IMPORTS AND AUCTION OFF THE RIGHT TO GET PART OF THE MARKET EVEN THOUGH BOTH METHODS WOULD LEAD TO HIGHER STEEL PRICES THE REPORT ARGUED THE US GOVERNMENT WOULD BENEFIT FROM INCREASED REVENUES FOREIGN STEEL COMPANIES AGREED TO VOLUNTARY RESTRAINT AGREEMENTS STARTING IN 1982 IN RESPONSE TO A SURGE OF PETITIONS BY THE US STEEL INDUSTRY AGAINST FOREIGN SUBSIDIES AND DUMPING IN SOCALLED ESCAPE CLAUSE PETITIONS US STEEL COMPANIES WERE ALSO ASKING FOR IMPORT RELIEF CONTENDING THEY WERE BEING INJURED BY FOREIGN STEEL IN RECENT MONTHS US NEGOTIATORS HAVE WEIGHED A SLEW OF OPTIONS IN AN EFFORT TO SETTLE US STEEL INDUSTRY COMPLAINTS THAT FOREIGN STEELMAKERS ARE UNFAIRLY SUBSIDIZED AND DUMP THEIR PRODUCTS IN THE US AT UNFAIRLY LOW PRICES AFTER VOLUNTARY RESTRAINT AGREEMENTS EXPIRED LAST YEAR MAJOR US STEEL COMPANIES FILED PETITIONS WITH US TRADE REGULATORS OUTLINING THOSE CHARGES IN RESPONSE TO THOSE PETITIONS THE COMMERCE DEPARTMENT LAST MONTH ISSUED A TEMPORARY RULING LEVYING TARIFFS EXPECTED TO AVERAGE 27 ON FLATROLLED STEEL IMPORTS COMMONLY USED IN CONSTRUCTION AND AUTO MANUFACTURING THAT ACTION CAME ATOP A PRELIMINARY RULING IN NOVEMBER LEVYING TARIFFS AVERAGING 15 IN THE ANTISUBSIDY CASES THE INSTITUTE REPORT CONCLUDED THAT DESPITE THE DRAWBACKS VOLUNTARY RESTRAINT AGREEMENTS WERE BETTER THAN NOTHING WITHOUT THEM US STEEL COMPANIES AT LEAST WOULD BE IN WORSE SHAPE THAN THEY ARE TODAY THE REPORT SAID SEE RELATED LETTER LETTERS TO THE EDITOR SOME STEEL PROTECTION WAS WARRANTED IN '80S WSJ MARCH 23 1993 9302110056 9303230150 930323 DIVIDEND NEWS RE CAPITAL CORP RE CAPITAL CORP STAMFORD CONN INCREASED ITS QUARTERLY DIVIDEND 17 TO SEVEN CENTS A SHARE FROM SIX CENTS A SHARE PAYABLE JUNE 10 TO SHARES OF RECORD MAY 18 RE CAPITAL IS A PROPERTY AND CASUALTY REINSURER 9303230148 930323 TECHNOLOGY & MEDICINE IN THE LAB AT TIMES SIDE EFFECTS CAN DO SOME GOOD BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NUTLEY NJ TWO YOUNG BIOLOGISTS TEAMED UP AT HOFFMANNLA ROCHE INC'S DRUG RESEARCH CAMPUS HERE IN 1989 TO STUDY A MYSTERIOUS SIDE EFFECT THREATENING AN ENTIRE CLASS OF MEDICINES WHAT THEY SOON STUMBLED INTO IS ONE OF THE MOST COMPETITIVE FIELDS IN DRUG RESEARCH HOW MEDICINES CAN SWITCH ON AND OFF GENES THAT AFFECT HUMAN DISEASES WHAT'S MAKES THIS EXCITING IS THAT WE ARE INVESTIGATING IMPORTANT PATHWAYS OF BIOLOGICAL ACTIVITY NEVER SEEN BEFORE SAYS BIOLOGIST ARTHUR LEVIN SITTING IN HIS CRAMPED OFFICE DOWN THE HALL FROM A BATTERY OF LABS HE HELPS SUPERVISE DR LEVIN SAYS THAT BY FINDING WAYS TO ACTIVATE GENES ROCHE HOPES TO PRODUCE NOVEL MEDICINES AGAINST SKIN AILMENTS CANCER AND A HOST OF OTHER DISEASES IT'S NOT WHAT WE FIRST EXPECTED DR LEVIN SAYS INDEED HOFFMANNLA ROCHE THE US UNIT OF THE SWISS DRUG MAKER ROCHE HOLDING LTD INITIALLY WANTED DR LEVIN AND COLLEAGUE JOSEPH GRIPPO SIMPLY TO HELP EXPLAIN WHY ROCHE'S BREAKTHROUGH MEDICINE FOR SEVERE ACNE ACCUTANE WAS CAUSING BIRTH DEFECTS WHEN PREGNANT WOMEN TOOK THE DRUG MARKETED SINCE 1984 ACCUTANE IS ONE OF A FAMILY OF DRUGS THAT MIMICS THE ACTION OF HORMONES PRODUCED WHEN THE BODY BREAKS DOWN VITAMIN A BUT BECAUSE OF ITS TOXICITY ACCUTANE'S USE HAS BEEN SHARPLY RESTRICTED ACCUTANE'S CHEMICAL COUSINS HAVE BEEN SIMILARLY HAMPERED IN THE FIGHT AGAINST WRINKLING CAUSED BY SUN EXPOSURE PSORIASIS AND CANCERS OF THE SKIN AND BLOOD CELLS WHEN THEY BEGAN COLLABORATING DR LEVIN AN EXPERT IN TOXICOLOGY AND DR GRIPPO A SCIENTIST TRAINED IN DISSECTING THE INNERMOST WORKINGS OF CELLS SET OFF TO TRACE HOW VITAMIN ARELATED HORMONES FUNCTION IN THE BODY ROCHE HAD A VERY PRACTICAL PROBLEM IT WANTED TO SOLVE DR GRIPPO SAYS WHICH WAS TO SEE IF AN ACCUTANELIKE DRUG COULD BE DEVELOPED WITHOUT ACCUTANE'S TOXICITY THEIR INVESTIGATION HOWEVER QUICKLY LED THEM INTO RESEARCH INTO THE CELL'S NUCLEUS AND EXPERIMENTS OF THE TYPE BEING CARRIED OUT IN ONLY A DOZEN OR SO BIOLOGY LABS WORLDWIDE THEY ALSO FOUND THEY WERE IN A RACE A LAB OUTSIDE SAN DIEGO AND ANOTHER IN FRANCE ALREADY HAD MADE A MAJOR DISCOVERY IN 1988 SHOWING THAT THE VITAMIN ARELATED HORMONES CALLED RETINOIC ACIDS PLAYED A CRUCIAL ROLE IN ACTIVATING GENES THE DISCOVERY WAS THE FIRST EVIDENCE THAT ACCUTANE AND THE OTHER RETINOICACID DRUGS WORKED BY INTERACTING DIRECTLY WITH GENES DR LEVIN SAYS ONCE ACTIVATED BY THE DRUGS THESE GENES TRIGGER CELLS TO MANUFACTURE PROTEINS THAT TELL THE CELLS WHETHER TO GROW DIVIDE OR SECRETE OTHER CHEMICALS THAT INSPIRE STILL OTHER EVENTS THE SCIENTISTS IN FRANCE AND SAN DIEGO HAD FOUND THAT THE RETINOIC ACIDS AWAKEN OR SILENCE GENES BY SLIDING THROUGH A CELL'S OUTER WALL AND BINDING TIGHTLY ONTO A FREEFLOATING RECEPTOR PROTEIN THAT RESIDES WITHIN CELLS ONCE JOINED THE ACID AND RECEPTOR GO THROUGH A METAMORPHOSIS CHANGING INTO A NEW SHAPE THAT LATCHES ONTO AND ACTIVATES GENES WITHIN THE CELL'S NUCLEUS SCIENTISTS BELIEVE THIS GENEACTIVATING CHARACTERISTIC IS HOW RETINA A DRUG SOLD BY JOHNSON & JOHNSON ALSO WORKS AGAINST ACNE IT ALSO MAY EXPLAIN HOW RETINA HEALS WRINKLING CAUSED BY YEARS OF SUN EXPOSURE PERHAPS BY PROMOTING RAPID GROWTH OF NEW SKIN CELLS BUT EVEN RETINA'S USE IS LIMITED BY SIDE EFFECTS THE DISCOVERY OF THE RETINOIC ACID RECEPTOR OR RAR GAVE DRS LEVIN AND GRIPPO THE STRATEGY THEY NEEDED TO SEARCH FOR NEW AND SAFER DRUGS WE HOPED TO FIND DRUGS THAT AFFECT RAR IN SKIN CELLS LET'S SAY BUT NOT ELSEWHERE DR LEVIN SAYS A DRUG THAT ACTED SPECIFICALLY ON RAR ONLY IN SKIN CELLS MIGHT NOT HAVE ACCUTANE'S TOXICITY BUT BEFORE THEY COULD FULLY TEST THE IDEA RONALD EVANS THE RESEARCHER IN SAN DIEGO WHO CODISCOVERED RAR MADE STILL ANOTHER BREAKTHROUGH DR EVANS A SENIOR INVESTIGATOR AT SALK INSTITUTE FOR BIOLOGICAL SCIENCES IN LA JOLLA CALIF FOUND THAT RETINOIC ACIDS ALSO COULD ACTIVATE GENES THROUGH A SECOND PREVIOUSLY HIDDEN FREEFLOATING RECEPTOR WHICH HE DUBBED RXR IT MEANT THAT NATURE CREATED A TOTALLY DIFFERENT PATHWAY THROUGH WHICH THE RETINOIC ACIDS CAN ACT ON GENES DR GRIPPO SAYS IT TOLD US THAT PROBABLY THERE WAS A NATURAL ACID THAT ACTED ON RXR THAT WE ALSO HAD YET TO IDENTIFY ONE DAY AHEAD THIS WAS IMPORTANT DR GRIPPO SAYS BECAUSE IF SUCH A NATURAL ACID COULD BE FOUND CHEMISTS AT ROCHE MIGHT BE ABLE TO USE ITS CHEMICAL COMPOSITION TO DESIGN NOVEL MEDICINES THAT ALSO ACTED ONLY ON RXR IN JANUARY 1992 THE ROCHE TEAM REPORTED FINDING THE NATURAL ACID AND ONE DAY LATER DR EVANS'S TEAM REPORTED THE SAME FINDING FOR ROCHE BEATING OUT THE EVANS LAB WAS ESPECIALLY GRATIFYING BECAUSE WE STARTED SO FAR BEHIND DR GRIPPO SAYS IT ALSO CATAPULTED THE ROCHE TEAM INTO THE FOREFRONT OF RESEARCH SEEKING OUT LESS TOXIC VERSIONS OF RETINOID MEDICINES INDEED IN JANUARY SCIENTISTS AT THE LA JOLLA CANCER RESEARCH CENTER REPORTED THAT THEY HAD DISCOVERED A MEDICINAL COMPOUND THAT LIKE THE NEWLY DISCOVERED NATURAL ACID ACTIVATED RXR WITHOUT AFFECTING RAR DR LEVIN SAYS CHEMISTS AT ROCHE HAD ALREADY IDENTIFIED SIMILAR CHEMICAL COMPOUNDS BUT ROCHE HAS YET TO PUBLISH THE FINDINGS FOR FEAR OF TIPPING OFF COMPETITORS AT OTHER PHARMACEUTICAL COMPANIES MEANWHILE LIGAND PHARMACEUTICALS INC A TINY BIOTECHNOLOGY COMPANY IN SAN DIEGO THAT DR EVANS HELPED FORM SAYS IT HOPES TO BEGIN STUDYING AN RXRACTIVATING DRUG AGAINST SKIN CANCER LATER THIS YEAR THE ROCHE TEAM AND SCIENTISTS ELSEWHERE NOW BELIEVE THEY SOON WILL BE UNCOVERING EXPERIMENTAL MEDICINES THAT MIMIC THE ACTION OF A WIDE RANGE OF OTHER GENEACTIVATING HORMONES SUCH AS ESTROGEN AND STEROIDS BY SEEKING OUT NEW RECEPTOR PATHWAYS LIKE RXR THE FIELD REALLY HAS EXPLODED SAYS DR LEVIN 9303230147 930323 INTERNATIONAL PROCORDIA REACHES ACCORD TO ACQUIRE MONTEDISON'S ERBAMONT DRUG DIVISION BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM CROWNING A MARATHON COURTSHIP SWEDEN'S PROCORDIA AB AGREED TO ACQUIRE MONTEDISON SPA'S ERBAMONT DRUG DIVISION IN A MULTISTEP TRANSACTION VALUED AT ABOUT 12 BILLION THE PROPOSED MERGER OF ERBAMONT AND PROCORDIA'S PHARMACEUTICAL UNIT KABI PHARMACIA AB WOULD CREATE EUROPE'S EIGHTHBIGGEST DRUG MAKER FOR ALL OF ITS CLOUT PROJECTED 1993 SALES OF 36 BILLION AND AN ANNUAL RESEARCH BUDGET OF 500 MILLION KABI PHARMACIA/ERBAMONT PLANS TO STEER CLEAR OF SUCH HOTLY COMPETITIVE AREAS AS CARDIOVASCULAR AND ULCER MEDICINES BOTH COMPANIES' MAIN PRODUCTS HOLD DOMINANT SHARES OF NICHE MARKETS MOST ANALYSTS CITE ERBAMONT'S PIPELINE OF CANCER DRUGS AS THE COMPANY'S MOST ATTRACTIVE ASSETS UNDER THE ACCORD PROCORDIA WILL PAY MONTEDISON 400 MILLION FOR AN INITIAL 51 STAKE IN ERBAMONT AT THE SAME TIME THE SWEDISH CONCERN WILL ASSUME 400 MILLION IN ERBAMONT DEBT PROCORDIA WILL WIELD MANAGEMENT CONTROL OF THE COMBINED CONCERN FROM THE OUTSET THE NEXT PHASE IS A BINDING TWOWAY OPTION PACT THROUGH WHICH PROCORDIA WOULD PURCHASE THE REMAINING 49 OF ERBAMONT FOR 500 MILLION IN 1994 OR 1995 HOWEVER MONTEDISON RETAINS THE RIGHT TO DEMAND COMPLETION OF THE OPTION SALE EARLIER UNDER CERTAIN CIRCUMSTANCES MONTEDISON COULD EVENTUALLY RECEIVE AS MUCH AS 320 MILLION IN PAYMENTS PEGGED TO SALES OF THREE DRUGS NOW AT EARLY STAGES OF DEVELOPMENT IN ADDITION TO RIFABUTIN A MEDICINE THAT IS JUST COMING ONTO WORLD MARKETS TO TREAT CERTAIN OPPORTUNISTIC INFECTIONS RELATED TO AIDS MONTEDISION AND KABI PROJECT RIFABUTIN'S ANNUAL SALES POTENTIAL AT 1 BILLION A LEVEL THAT RAISES EYEBROWS AMONG ANALYSTS THE WORLD'S FLAGSHIP AIDS MEDICINE WELLCOME'S RETROVIR POSTED SALES OF 213 MILLION 3177 MILLION IN THE YEAR ENDED LAST AUG 29 ANALYSTS ALSO PUZZLED OVER THE MODEST PRICE FETCHED BY ERBAMONT BARELY MORE THAN THE ITALIAN COMPANY'S 1992 ANNUAL SALES OF 13 BILLION A VALUATION OF AT LEAST TWO TIMES SALES IS CLOSER TO AN INDUSTRY BENCHMARK THE ANALYSTS SAID THE LOW PRICE MAY REFLECT MONTEDISION'S HASTE TO COMPLETE ITS ANNOUNCED WITHDRAWAL FROM PHARMACEUTICALS AND CHEMICALS AND USE OF PROCEEDS OF ASSET SALES TO REDUCE DEBT SQUEEZING THE PARENT FERRUZZI GROUP MONTEDISON AND KABI WERE CLOSE TO SEWING UP A SIMILAR ERBAMONT PURCHASE LAST AUTUMN BUT PROCORDIA'S BOARD GOT COLD FEET AND SCUTTLED THE DEAL PRODDING DIRECTORS TO RECONSIDER WAS A MAJOR COUP FOR JAN EKBERG PROCORDIA'S LOWKEY CHIEF EXECUTIVE OFFICER MR EKBERG WON HIGH MARKS FOR HIS HANDLING OF A GIANT 1989 MERGER THAT SPAWNED THE PRESENT KABI PHARMACIA MR EKBERG CLAIMED THE LATEST ACQUISITION WILL HAVE ONLY A MARGINAL IMPACT ON EARNINGS PER SHARE THIS YEAR AND ACTUALLY WILL BOOST PROFITS BEGINNING NEXT YEAR HOWEVER THAT FORECAST ASSUMES PROCORDIA CAN SQUEEZE ABOUT 130 MILLION OF ANNUAL COSTS FROM THE COMBINED FIRMS' OPERATIONS WITHIN THREE TO FOUR YEARS WITHOUT INCURRING EVEN BIGGER ONETIME RESTRUCTURING CHARGES IN THE PROCESS MR EKBERG SAID THE TAKEOVER REFLECTS PROCORDIA'S DESIRE THAT MONTEDISON REMAIN AN OWNER TAKING CONTINUED RESPONSIBILITY FOR ERBAMONT'S FURTHER DEVELOPMENT MONTEDISON IS IMPORTANT AS A LOCAL PARTNER FOR US IN ITALY AT LEAST IN THE BEGINNING KABI PHARMACIA'S BIGGEST PRODUCT IS A HUMAN GROWTH HORMONE CALLED GENOTROPIN DEVELOPED BY GENENTECH INC KABI ALSO MAKES HEALON A GEL USED IN CATARACT SURGERY WHICH BOASTS A NEAR MONOPOLY IN ITS MARKET AND THE ANTISMOKING PRODUCT NICORETTE ERBAMONT HAS STRUGGLED TO OVERCOME PATENT EXPIRY OF ITS BIGGEST PRODUCT ADRIAMYCIN USED TO TREAT SOLID CANCER TUMORS PRESSURE FROM CHEAP GENERIC COPIES HAVE HELPED STRIP NEARLY A THIRD OF ADRIAMYCIN'S SALES IN THE CRUCIAL US MARKET LAST YEAR THE PRODUCT POSTED GLOBAL SALES OF LESS THAN 150 MILLION DOWN FROM MORE THAN 230 MILLION THREE YEARS EARLIER THE TRANSACTION REMAINS SUBJECT TO REVIEW BY EUROPEAN COMMUNITY COMPETITION AUTHORITIES 9303230146 930323 LETTERS TO THE EDITOR TOBACCO INDUSTRY'S SMOKE SCREEN YOUR FEB 11 PAGEONE ARTICLE SMOKE AND MIRRORS HOW CIGARETTE MAKERS KEEP HEALTH QUESTION OPEN' YEAR AFTER YEAR EXPLAINS HOW CIGARETTE MAKERS HAVE HOODWINKED THE AMERICAN PUBLIC FOR THE PAST 40 YEARS REGARDING THE DEVASTATING HEALTH PROBLEMS CAUSED BY CIGARETTE SMOKING YOU NOTE YET THE WISP OF UNCERTAINTY SUPPLIED BY THE COUNCIL FOR TOBACCO RESEARCH HAS ALWAYS BEEN ENOUGH TO PROTECT THE 50 BILLION INDUSTRY IN CONGRESS AND ESPECIALLY IN COURT IT'S MORE THAN JUST A WISP OF UNCERTAINTY THAT HAS BROUGHT THIS ABOUT THE PUBLIC CITIZEN HEALTH RESEARCH GROUP REPORTED THAT AS OF JUNE 30 1992 THE TOBACCO INDUSTRY HAD DONATED 134 MILLION TO THE REPUBLICAN PARTY AND 731000 TO THE DEMOCRATIC PARTY TO SUPPORT POLITICAL CANDIDATES DURING THE ELECTIONS OF 1980 AND 1982 MORE THAN 200 MEMBERS OF CONGRESS RECEIVED FUNDS FROM THE TOBACCO PEOPLES PUBLIC AFFAIRS COMMITTEE HONORARIUMS FOR SPEAKING AT TOBACCO INDUSTRY FUNCTIONS REPRESENT ANOTHER SOURCE OF FUNDS TO CONGRESSMEN AS NOTED IN THE JULY 28 1983 WALL STREET JOURNAL THE FEDERAL COURTS HAVE A LESS THAN STELLAR RECORD ALSO THE THIRD CIRCUIT COURT OF APPEALS THAT RECENTLY REMOVED JUDGE H LEE SAROKIN FROM HANES V LIGGETT FOLLOWING HIS DECISION TO RELEASE THE TOBACCO INDUSTRY RECORDS TO THE PLAINTIFFS IN THAT CASE IS THE SAME FEDERAL APPELLATE COURT THAT IN 1986 RULED THAT THE CIGARETTE WARNING LABELS MANDATED BY CONGRESS IN 1965 PREEMPT ANY LIABILITY ON THE PART OF TOBACCO COMPANIES FOR THEIR PRODUCTS THE SUPREME COURT DECLINED TO HEAR THIS RULING FOR FIVE YEARS PARTIALLY REVERSING THE THIRD CIRCUIT DECISION IN 1992 IN 1988 MILLER BREWING CO A DIVISION OF PHILIP MORRIS THE NO 1 CIGARETTE MAKER IN THE US BECAME THE FOUNDING SPONSOR OF THE THURGOOD MARSHALL BLACK EDUCATION FUND IN THE PAST 40 YEARS LUNG CANCER DEATHS HAVE INCREASED MORE THAN 400 IN BLACK AMERICANS YOUR ARTICLE PROVIDED AN INVALUABLE INSIGHT INTO THE TOBACCO INDUSTRY'S LONGRUNNING CONSPIRACY TO DECEIVE THE PUBLIC ABOUT THE DANGERS OF SMOKING IN ADDITION TO THE PUBLIC RELATIONS AND LITIGATION INITIATIVE DESCRIBED IN THIS ARTICLE THE COUNCIL FOR TOBACCO RESEARCH CTR HAS BEEN USED IN OTHER WAYS TO SHIELD THE INDUSTRY'S CAMPAIGN TO PROMOTE TOBACCO ADDICTION REPRESENTATIVES FROM CTR PRESSURED MANY NATIONAL NEWS PUBLICATIONS AND RESEARCH ORGANIZATIONS EITHER TO REFRAIN FROM PUBLISHING ARTICLES DAMAGING TO THE TOBACCO INDUSTRY OR TO TONE DOWN THEIR CONCLUSIONS IT PLANTED FALSE AND MISLEADING STORIES IN THE PRESS ADDITIONALLY CTR HAS PLAYED A KEY ROLE IN PREVENTING CONGRESS FROM TAKING EFFECTIVE ACTION TO PROTECT THE PUBLIC FROM TOBACCO ADDICTION FOR EXAMPLE WHEN CONGRESS WAS CONSIDERING STRONGER HEALTH WARNINGS IN 1983 DR SHELDON SOMMERS THENSCIENTIFIC DIRECTOR OF CTR TESTIFIED THAT THERE WAS NO SCIENTIFICALLY ESTABLISHED REASON FOR A PREGNANT WOMAN TO REFRAIN FROM SMOKING HE ALSO CLAIMED SMOKING HAD NOT BEEN PROVED TO CAUSE LUNG CANCER OR HEART DISEASE AS A RESULT OF TOBACCO INDUSTRY LOBBYING THE WORDS MISCARRIAGE AND SPONTANEOUS ABORTION WERE WATERED DOWN TO THE MORE INNOCUOUS COMPLICATIONS OF PREGNANCY IN THE FINAL WARNING IN SENATE HEARINGS ON THE HEALTH WARNINGS EA HORRIGON THENCEO OF RJ REYNOLDS TOBACCO MADE THE INCREDIBLE CLAIM THAT THE TOBACCO COMPANIES ARE A RESPONSIBLE AND CONCERNED INDUSTRY INDEED THEY ARE THEY ARE RESPONSIBLE FOR A WORLDWIDE EPIDEMIC THAT HAS KILLED MILLIONS AND WILL KILL MILLIONS MORE AND THEY ARE CONCERNED WITH ATTRACTING A SUFFICIENT NUMBER OF YOUNG NEW SMOKERS TO REPLACE THE ADULTS WHO DIE OR QUIT THE COUNCIL FOR TOBACCO RESEARCH HAS BEEN AN INVALUABLE ASSET IN THEIR EFFORT TO PROMOTE TOBACCO ADDICTION 9303230145 930323 BANC ONE EXPECTS EARNINGS TO EXCEED ANALYSTS' FORECASTS COLUMBUS OHIO BANC ONE CORP EXPECTS FIRSTQUARTER AND 1993 EARNINGS TO EXCEED ANALYSTS' ESTIMATES JOHN B MCCOY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN ADDITION THE ACQUISITIONMINDED BANK HOLDING COMPANY EXPECTS ADDITIONAL PURCHASES WITHIN THE NEXT SIX MONTHS MR MCCOY SAID EARNINGS WILL BE HIGHER THAN PROJECTIONS BY SOME OF THE MORE OPTIMISTIC ANALYSTS SUCH AS NANCY A BUSH OF BROWN BROTHERS HARRIMAN & CO WHO LAST WEEK BOOSTED FIRSTQUARTER ESTIMATES TO 98 CENTS A SHARE FROM 92 CENTS AND 1993 ESTIMATES TO 4 FROM 385 I THINK NANCY'S A LITTLE LOW MR MCCOY SAID IN AN INTERVIEW IN THE 1992 FIRST QUARTER BANC ONE POSTED NET OF 1787 MILLION OR 86 CENTS A SHARE FOR 1992 THE BANK HAD NET INCOME OF 7813 MILLION OR 328 A SHARE MR MCCOY SAID THE COMPANY IS SEEING LOWER CHARGEOFFS A CONTINUATION OF STRONG MARGINS AND WE'RE STARTING TO SEE SOME LOAN DEMAND AFTER ACQUISITIONS IN ARIZONA WEST VIRGINIA AND ILLINOIS ARE COMPLETED IN THE SECOND QUARTER BANC ONE WILL BECOME THE NATION'S SEVENTH LARGEST BANK WITH 76 BILLION IN ASSETS IN THE SOUTHWEST AND ROCKY MOUNTAIN REGION WHERE BANC ONE HAS MADE LARGE ACQUISITIONS WE'RE SEEING SOME LOAN GROWTH THE 49YEAROLD MR MCCOY SAID HE EXPECTS THE SAME AT ARIZONABASED VALLEY NATIONAL CORP WHICH IS CURRENTLY BEING ACQUIRED BY BANC ONE WHEN WE ANNOUNCED THE ACQUISITIONS IN ARIZONA AND COLORADO LAST YEAR THERE WERE SOME CONCERNS ABOUT THOSE MARKETS HE SAID AS THE WHOLE INDUSTRY HAS IMPROVED THOSE AREAS HAVE IMPROVED MORE SO MOREOVER BANC ONE IS BACK IN THE ACQUISITION BUSINESS MR MCCOY SAID HE NOTED THAT INVESTORS WERE CONCERNED THAT THE BANK WAS EXPANDING TOO QUICKLY AFTER THE ARIZONA PURCHASES WE SAID WE WOULDN'T DO ANOTHER TRANSACTION UNTIL WE DEMONSTRATED THAT THE ONES WE HAD WERE EARNING THEY'VE DEMONSTRATED IT HE SAID ADDING IF THERE ARE OPPORTUNITIES WE CERTAINLY WILL PARTICIPATE IN THEM NOW OUR APPETITE IS BACK SO TO SPEAK OUR HOPE WOULD BE WE WOULD SEE SOME TRANSACTIONS IN THE NEXT SIX MONTHS 9303230144 930323 WEINGARTEN CALLS DEBENTURES HOUSTON WEINGARTEN REALTY INVESTORS CALLED FOR REDEMPTION ALL ITS OUTSTANDING 60 MILLION CONVERTIBLE DEBENTURES DUE 2003 AT 106 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TO THE REDEMPTION DATE APRIL 22 THE TOTAL PRICE WOULD BE 113384 PER 1000 PRINCIPAL AMOUNT THE REAL ESTATE INVESTMENT TRUST SAID THAT ALTERNATIVELY THE DEBENTURES ARE CONVERTIBLE AT THE HOLDER'S OPTION INTO THE COMPANY'S COMMON SHARES 9303230143 930323 FINANCING BUSINESS WAXMAN INDUSTRIES INC WAXMAN INDUSTRIES INC BEDFORD HEIGHTS OHIO SAID ITS IDEAL PLUMBING GROUP INC SUBSIDIARY IN CANADA FILED FOR AN INITIAL PUBLIC OFFERING IDEAL A PLUMBING AND HEATING PRODUCTS WHOLESALER WILL SELL THREE MILLION NEW SHARES IN CANADA RAISING AN ESTIMATED 25 MILLION CANADIAN DOLLARS US201 MILLION THE SHARES WILL REPRESENT A 40 STAKE IN IDEAL THE COMPANY WILL USE PROCEEDS FROM THE STOCK SALE TO PAY DOWN BANK DEBT WHICH TOTALS ABOUT C75 MILLION WOOD GUNDY INC IS THE LEAD UNDERWRITER 9303230142 930323 EATON CALLS DEBENTURES CLEVELAND EATON CORP CALLED FOR THE REDEMPTION OF ITS OUTSTANDING 9 DEBENTURES DUE MARCH 15 2016 WHICH WILL RESULT IN A CHARGE OF NINE CENTS A SHARE AGAINST FIRSTQUARTER EARNINGS IN THE YEAREARLIER PERIOD EATON EARNED 327 MILLION OR 96 CENTS A SHARE EATON SAID IT HAS 738 MILLION OF THE DEBENTURES OUTSTANDING THE REDEMPTION DATE IS APRIL 19 AND THE PRICE IS 105525 OF THE PRINCIPAL AMOUNT THE MAKER OF VEHICLE POWER TRAIN PARTS AND A VARIETY OF CONTROLS SAID IT IS CALLING FOR THE REDEMPTION BECAUSE OF STRONG CASH FLOW ENABLING IT TO CUT ITS INTEREST EXPENSE 9303230141 930323 CANADIAN RETAIL SALES UP OTTAWA CANADIAN RETAIL SALES ROSE A SEASONALLY ADJUSTED 18 IN JANUARY FROM DECEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID RETAIL SALES HAVE SHOWN A STEADILY RISING TREND SINCE LAST MARCH STATISTICS CANADA SAID IN JANUARY AUTO SALES INCREASED 11 FROM DECEMBER SALES AT DRUGSTORES WERE UP 45 FROM DECEMBER AND SALES BY GENERALMERCHANDISE STORES ROSE 24 9303230140 930323 FINANCING BUSINESS MATTHEWS INTERNATIONAL CORP MATTHEWS INTERNATIONAL CORP PITTSBURGH FILED FOR THE INITIAL OFFERING OF 18 MILLION CLASS A COMMON SHARES IN A SECURITIES AND EXCHANGE COMMISSION FILING THE COMPANY SAID IT WOULD OFFER 900000 SHARES AND SELLING HOLDERS INCLUDING EMPLOYEES WOULD OFFER 900000 SHARES MATTHEWS DIDN'T OFFER AN INITIAL PRICING RANGE FOR THE STOCK HOWEVER THE STOCK WAS REGISTERED AT A PROPOSED MAXIMUM OFFERING PRICE OF 12 A SHARE MATTHEWS MAKES BRONZE MEMORIAL PRODUCTS PRIMARILY FOR CEMETERIES AND PRODUCTS FOR LABELING AND IDENTIFYING PRODUCTS AFTER THE OFFERING THE COMPANY WILL HAVE 8460000 CLASS B SHARES AND 18 MILLION CLASS A SHARES OUTSTANDING THE COMPANY'S 700 EMPLOYEES OWN THE CLASS B SHARES PROCEEDS FROM THE OFFERING ARE INTENDED TO PAY DEBT AND PROVIDE WORKING CAPITAL AND FUNDS FOR GENERAL USE THERE IS A 270000 SHARE OVERALLOTMENT OPTION THE UNDERWRITERS ARE LED BY PARKER/HUNTER INC MATTHEWS HAD 148 MILLION IN SALES IN THE YEAR ENDED SEPT 30 9303230139 930323 INTERNATIONAL CHILE'S GROWTH RATE EXPANDS SANTIAGO CHILE'S GROSS NATIONAL PRODUCT GREW AT A RATE OF 104 IN 1992 THE GOVERNMENT SAID THE FIGURE ANNOUNCED BY THE CENTRAL BANK'S DEPARTMENT OF STUDIES REVISES THE PREVIOUS PRELIMINARY FIGURE OF 97 REPORTED BY THE FINANCE MINISTRY THE CENTRAL BANK ATTRIBUTED THE GROWTH MAINLY TO THE STRONG PERFORMANCE OF THE TRADE TRANSPORT COMMUNICATIONS AND CONSTRUCTION SECTORS A LOWER GROWTH RATE OF ABOUT 6 TO 7 IS EXPECTED FOR 1993 AN OFFICIAL SAID 9303230138 930323 LEISURE & ARTS ON SPORTS A RED TO COUNT ON BY FREDERICK C KLEIN PLANT CITY FLA MAYBE THE BEST WAY TO MEASURE HOW BASEBALL HAS CHANGED IN RECENT YEARS IS TO RECALL THE OLD SAW THAT SLUGGERS DRIVE CADILLACS WHILE SINGLES HITTERS DRIVE CHEVYS HERE WE HAVE LEON BIP ROBERTS 5FOOT7 AND 165 POUNDS A SINGLES HITTER IF THERE EVER WAS ONE 481 OF HIS 626 MAJORLEAGUE SAFETIES OVER FIVE SEASONS HAVE BEEN ONEBAGGERS AND A SCANT 20 HAVE BEEN HOME RUNS SO WHAT IS IT THAT YOU DRIVE BIP A BMW FOR ME AND A MERCEDES FOR MY WIFE HE SAYS WITH A PLEASED GIGGLE AND WE HAVE A PORSCHE 911 FOR NICE DAYS IT'S A CONVERTIBLE THE INTERESTING THING ABOUT THAT RECITATION IS THAT ALL THOSE SNAZZY VEHICLES WERE PURCHASED BEFORE ROBERTS AGED 29 REALLY STRUCK IT RICH IN THE NATIONAL PASTIME THAT CAME ON A MEMORABLE FEB 16 LAST WHEN AN ARBITRATOR ONE RICHARD BLOCH AGREED WITH ROBERTS AND HIS AGENT SCOTT BORAS THAT THE PLAYER DESERVED TO EARN 39 MILLION FOR THE 1993 SEASON NOT THE 27 MILLION THAT HIS EMPLOYER THE CINCINNATI REDS HAD OFFERED THE AWARD DID NOT VAULT ROBERTS INTO ANY NEW BASEBALLSALARY STRATUM OTHER PLAYERS WILL RECEIVE AS MUCH AS 7 MILLION FOR RUNNING AROUND IN KNICKERS OVER THE NEXT SIX MONTHS HE HIMSELF EARNED 15 MILLION LAST SEASON AND 900000 THE YEAR BEFORE MORE THAN ENOUGH TO AFFORD THE ABOVEMENTIONED CARS CERTAINLY THOUGH HE WILL BE THE BESTPAID ATHLETIC BIP EVER AND PROBABLY THE BESTPAID PLAYER OF BIPIAN PROPORTIONS THE SYSTEM WE HAVE NOW REWARDS PERFORMANCE NOT HOW BIG YOU ARE HE POINTS OUT AT HIS TEAM'S CENTRAL FLORIDA SPRINGTRAINING BASE AND LAST YEAR I PERFORMED THAT IS TO PUT IT MILDLY BECAUSE THE OFFENSIVE NUMBERS THAT THE SPEEDY SWITCHHITTING ROBERTS POSTED FOR A REDS CLUB THAT FINISHED SECOND IN THE NATIONAL LEAGUE WEST WOULD HAVE DONE CREDIT TO A PLAYER OF ANY MEASUREMENTS HIS 323 BATTING AVERAGE WAS FOURTHBEST IN THE LEAGUE AND HE ALSO RANKED AMONG LEAGUE LEADERS IN HITS 172 MULTIHIT GAMES 55 RUNS 92 STOLEN BASES 44 AND ONBASE PERCENTAGE 393 MOREOVER HE WAS A SORT OF ONEMAN BAND AFIELD STARTING AT FOUR DIFFERENT POSITIONS SECOND AND THIRD BASE AND LEFT AND CENTER FIELD AND HANDLING ALL WELL ON 26 OCCASIONS HE WAS CALLED UPON TO PLAY MORE THAN ONE POSITION IN A SINGLE GAME WE'VE HAD A LOT OF UPS AND DOWNS BUT THE ONE CONSTANT WE'VE HAD IS BIP LOU PINIELLA THE REDS MANAGER NOW EXMANAGER PRONOUNCED LATE IN THE 1992 CAMPAIGN HE'S BEEN OUR BEST PLAYER DAY IN AND DAY OUT AGENT BORAS NO DOUBT MENTIONED THAT OPINION AT ROBERTS'S ARBITRATION HEARING ROBERTS SAYS IT WAS NO ACCIDENT LAST SEASON WAS HIS BEST IT WAS HIS FIRST IN CINCINNATI AFTER COMING TO THE TEAM IN A TRADE FOR RELIEF PITCHER RANDY MYERS FROM SAN DIEGO WHERE HE'D SPENT HIS FIRST FOUR BIGLEAGUE YEARS AND THE REDS HAD SOMETHING THE PADRES DIDN'T AN ARTIFICIALTURF HOME FIELD THAT WAS PERFECT FOR ROBERTS'S HIT'EMONTHEGROUNDANDRUN OFFENSIVE STYLE HE WOULD BAT 353 IN GAMES ON THE RIVERFRONT STADIUM PLASTIC AND THE REDS DIDN'T HAVE SOMETHING THE PADRES HAD FOR BIP UNHAPPY MEMORIES THEY BEGAN IN 1986 AFTER SAN DIEGO DRAFTED ROBERTS FROM THE MINORLEAGUE CHAIN OF THE PITTSBURGH PIRATES WHO'D SIGNED HIM INITIALLY IN 1982 THE PADRES BROUGHT HIM TO THE MAJORS BUT AS THE RIGHTHANDEDHITTING PART OF A SECONDBASE PLATOON WITH THE VETERAN TIM FLANNERY ROBERTS CHAFED IN THE PARTTIME ROLE I COULDN'T USE ALL MY SKILLS HE SAYS AND WAS RUBBED DOWNRIGHT RAW WHEN AFTER A SEASON IN WHICH HE BATTED 253 SAN DIEGO SENT HIM BACK TO THE MINORS FOR TWO MORE YEARS HE SAYS HE FREQUENTLY THOUGHT ABOUT QUITTING BASEBALL DURING THAT SPAN A 353 BATTING AVERAGE AT TRIPLEA LAS VEGAS IN 1988 EARNED BIP ANOTHER SHOT AS A PADRE THOUGH THIS TIME HE STUCK HITTING 301 309 AND 281 IN THREE SEASONS BUT WHAT HE CALLS DISAGREEMENTS WITH MANAGERS AND TEAMMATES MARRED THE EXPERIENCE SUFFICE IT TO SAY HE ARRIVED IN THE QUEEN CITY WITH TWO GOALS TO MAKE SURE WE THE REDS FINISHED HIGHER THAN THE PADRES AND TO MAKE THE ALLSTAR TEAM FOR THE 1992 CONTEST THAT WAS TO BE PLAYED IN SAN DIEGO WHERE HE STILL LIVES IN THE OFFSEASON HE ACHIEVED BOTH AND IN THE ALLSTAR GAME HIS FIRST WENT TWOFORTWO AT THE PLATE WITH TWO RUNS BATTED IN BIP WHO GOT HIS NICKNAME FROM HIS FAMILY BECAUSE OF HIS CARTOONSTRIP BOUNCYNESS AS A CHILD IN OAKLAND CALIF I WAS ALWAYS GOING LIKE BAM POW POP BIP' YOU KNOW SAYS 1992 WAS A DREAM SEASON FOR HIM THE RAPTURE CONTINUED WITH HIS FEBRUARY ARBITRATION VICTORY HE SAYS HE ENTERED CONTRACT TALKS WITH THE REDS LOOKING FOR A MULTIYEAR DEAL BUT AS A VETERAN A YEAR SHY OF POSSIBLE FREEAGENT STATUS HE OPTED FOR ARBITRATION WHEN SUCH A PACT COULDN'T BE CONSUMMATED THE 39 MILLION FIGURE WAS AGENT BORAS'S HE GOT UP ABOUT 500 PAGES OF INFORMATION COMPARING ME TO JUST ABOUT EVERY OTHER BIG LEAGUER BIP RECALLS I THOUGHT MAYBE WE SHOULD JUST GO FOR 4 MILLION BUT HE THOUGHT THE 39'D LOOK BETTER AND HEY AT THAT LEVEL WHAT'S 100000 ROBERTS WON'T BEGIN DRAWING HIS 1993 SALARY UNTIL THE REGULAR SEASON STARTS BUT HE HIS WIFE JANINA AND AN INVESTMENT ADVISER ALREADY HAVE MADE PLANS TO SALT MOST OF IT AWAY THE QUICKER WE GET IT INVESTED SAFE THE HAPPIER I'LL BE SAYS THE PLAYER WHO HIS AUTO FLEET TO THE CONTRARY NOTWITHSTANDING CALLS HIMSELF A FINANCIAL CONSERVATIVE HE EXPLAINS WHEN YOU MAKE BIG BUCKS LIKE I'M MAKING SOME PEOPLE SEE A DOLLAR SIGN ON YOUR FOREHEAD AND THINK IT'S THEIR DUTY TO RUN SCAMS ON YOU AND WHILE HE SAYS PART OF HIM THINKS GETTING ALMOST 4 MILLION FOR A SPRING AND SUMMER OF BALLPLAYING IS WILD CRAZY UNBELIEVABLE ANOTHER PART IS MORE THAN HAPPY TO ACCEPT IT WHEN I WAS A KID IN THE MINORS WILLIE STARGELL THE OLD PITTSBURGH PIRATE TOLD ME NOT TO LET THE SIDE STUFF IN BASEBALL CLOG MY BRAIN THAT IF I'D JUST GO OUT ON THE FIELD AND SHOW WHAT I COULD DO GOOD THINGS WOULD HAPPEN HE SAYS AND OH HAS HE BEEN RIGHT 9303230137 930323 TECHNOLOGY COMPUTER SCIENCES ENTERS PACT EL SEGUNDO CALIF COMPUTER SCIENCES CORP SAID IT ENTERED INTO A TECHNOLOGY MANAGEMENT CONTRACT WITH SUN MICROSYSTEMS INC THE AGREEMENT IS EXPECTED TO BRING COMPUTER SCIENCES A COMPUTER SERVICES CONCERN REVENUE OF ABOUT 27 MILLION OVER THREE YEARS UNDER THE DEAL SUN WILL TEMPORARILY TRANSFER ALL OF ITS MAINFRAME DATA CENTER ACTIVITIES IN MILPITAS CALIF TO A COMPUTER SCIENCES DATA CENTER IN SAN DIEGO THE TRANSITION WILL ALLOW SUN TO CONVERT ITS MAINFRAME SYSTEMS TO A CLIENTSERVER ENVIRONMENT COMPUTER SCIENCES SAID 9303230136 930323 LOCKHEED SETTLES SUIT WITH WHISTLEBLOWERS FOR UNSTATED AMOUNT CALABASAS CALIF LOCKHEED CORP SAID IT SETTLED A CIVIL WHISTLEBLOWER LAWSUIT BROUGHT BY THREE FORMER EMPLOYEES FOR AN AMOUNT OF MONEY THAT IS NOT MATERIAL A STATE COURT JURY IN 1990 HAD ORIGINALLY AWARDED 454 MILLION IN DAMAGES TO THE WORKERS ONE OF THE LARGEST VERDICTS EVER IN A WRONGFUL TERMINATION CASE BUT THAT SUM WAS LATER SET ASIDE ON A TECHNICALITY A PERSON CLOSE TO THE NEGOTIATIONS SAID THE AEROSPACE COMPANY PAID ABOUT 7 MILLION TO RESOLVE THE CASE THE LAWSUIT STEMMED FROM CHARGES THAT LOCKHEED WRONGFULLY FIRED THE WORKERS FOR QUESTIONING THE SAFETY OF ITS GIANT C5B MILITARY CARGO PLANE THE EMPLOYEES CLYDE W JONES JR TERRENCE F SCHIELKE AND THOMAS E BENECKE CLAIMED THEY WERE FIRED IN 1985 AFTER REPORTING CONCERNS ABOUT THE STRUCTURAL INTEGRITY OF THE C5B TO LAWRENCE O KITCHEN WHO RETIRED AS CHAIRMAN IN 1988 LOCKHEED ARGUED IN ITS DEFENSE THAT MESSRS JONES AND SCHIELKE WHO WERE INTERNAL AUDITORS WERE DISMISSED FOR UNPROFESSIONAL CONDUCT BECAUSE THEY FAILED TO REPORT THEIR CONCERNS IN A TIMELY MANNER THE COMPANY CONTENDED THAT MR BENECKE A QUALITYASSURANCE EMPLOYEE RETIRED VOLUNTARILY WE'RE MAINTAINING THAT THERE IS NOTHING WRONG WITH THE C5B A LOCKHEED SPOKESMAN SAID HE DECLINED TO CONFIRM DETAILS OF THE SETTLEMENT WHICH WERE FIRST REPORTED BY THE LOS ANGELES TIMES PHILIP BENSON A LAWYER FOR THE PLAINTIFFS ALSO WOULDN'T COMMENT ON THE AMOUNT OF THE SETTLEMENT LOOKING BACK AT THE TRIAL OUR CLIENTS FELT THEY WERE VINDICATED BECAUSE THEY WERE ABLE TO STAND UP AND TELL THEIR STORY AND LET A JURY DECIDE HE SAID THE JURY'S AWARD WAS VIRTUALLY ENTIRELY IN THE FORM OF PUNITIVE DAMAGES BUT IN A TURN OF EVENTS EVEN MORE STARTLING THAN THE SIZE OF THE VERDICT A JUROR BELATEDLY DISCLOSED DURING DELIBERATIONS THAT HE HAD SPENT TIME IN PRISON UNDER CALIFORNIA LAW PEOPLE WHO HAVE BEEN CONVICTED OF A FELONY AREN'T ELIGIBLE TO SERVE ON JURIES AND THE AWARD WAS VOIDED 9303230135 930323 INTERNATIONAL INTERBREW POSTS PROFIT DECLINE BRUSSELS INTERBREW SA EUROPE'S FIFTHLARGEST BREWER REPORTED A 37 DECLINE IN PROFIT FOR THE YEAR ENDED SEPT 30 THE FAMILYOWNED COMPANY WHOSE INTERNATIONAL BRANDS INCLUDE STELLA ARTOIS HOEGAARDEN AND LEFFE SAID PROFIT EXCLUDING MINORITY INTERESTS TOTALED 131 BILLION BELGIAN FRANCS 39 MILLION DOWN FROM 208 BILLION A YEAR EARLIER SALES INCREASED 12 TO 627 BILLION FRANCS FROM 561 BILLION FRANCS PARTLY REFLECTING THE ACQUISITION OF A BREWERY IN HUNGARY INTERBREW BLAMED THE DECLINE IN RESULTS ON HIGHER TAXES AND THE COSTS OF BUILDING TWO MAJOR BREWERIES IN BELGIUM OPERATING PROFIT INCREASED 11 TO 243 BILLION FRANCS FROM 218 BILLION FRANCS 9303230134 930323 IMRE DRUG APPROVAL IS DELAYED SEATTLE IMRE CORP SAID FEDERAL REGULATORS WILL REQUEST MORE DATA FROM CLINICAL TESTS BEFORE RULING ON THE COMPANY'S APPLICATION TO MARKET A PRODUCT AS A TREATMENT FOR CERTAIN BLEEDING DISORDERS THAT SOMETIMES OCCUR IN CANCER PATIENTS IMRE A MEDICAL PRODUCTS COMPANY SAID THE FOOD AND DRUG ADMINISTRATION REQUESTED DATA TO COMPLY WITH REGULATIONS THAT DIDN'T EXIST WHEN THE COMPANY DID ITS ORIGINAL TESTS ON WHETHER THE PRODUCT PROSORBA IS EFFECTIVE IN TREATING BLEEDING DISORDERS ASSOCIATED WITH IMMUNE SYSTEM DEFICIENCIES THAT CAN OCCUR IN PATIENTS RECEIVING CHEMOTHERAPY IN OVERTHECOUNTER TRADING IMRE CLOSED AT 24375 DOWN 125 CENTS 9303230133 930323 INTERNATIONAL CHINESE OFFICIALS WALK TIGHTROPE IN BID TO CREATE A SOCIALIST MARKET ECONOMY' BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING HOW DO YOU RELINQUISH CENTRAL AUTHORITY AND STILL KEEP THE ECONOMY FROM SPINNING OUT OF CONTROL THAT WAS THE UNANSWERED QUESTION AS SENIOR CHINESE OFFICIALS GAVE THEIR ANNUAL WORK REPORTS LAST WEEK AND EXPLAINED HOW CHINA WILL CREATE DENG XIAOPING'S SOCIALIST MARKET ECONOMY IN FACT IN THEIR SPEECHES TO THE ANNUAL MEETING OF THE RUBBERSTAMP NATIONAL PEOPLE'S CONGRESS SOME OF BEIJING'S COMMUNIST TASKMASTERS SOUNDED AS IF THEY'RE SCARED OF BEING TOO BOSSY TAKE ZOU JIAHUA CHIEF OF THE STATE PLANNING COMMISSION FOR EXAMPLE MR ZOU WHO HAS THE POWER TO CHOOSE WHICH INDUSTRIES LIVE OR DIE WHICH LOCALITIES GET DAMS AND WHICH DON'T TOLD THE DELEGATES THAT 1993 GROSS NATIONAL PRODUCT SHOULD GROW BY 8 BUT HE QUICKLY ADDED LOCAL AUTHORITIES SHOULD DETERMINE AN APPROPRIATE ECONOMIC GROWTH RATE IN LIGHT OF THEIR SPECIFIC CIRCUMSTANCES OR TAKE FINANCE MINISTER LIU ZHONGLI WHO LAMENTED HOW LOCAL GOVERNMENTS HAVE BEEN ON SUCH A SPENDING SPREE THAT MANY CAN'T MEET THEIR PAYROLLS MUCH LESS REPAY DEBTS FOCUSING ON THE PROBLEMS IN FINANCIAL MANAGEMENT WE MUST CONTINUE TO IMPROVE OUR WORK IN THE SPIRIT OF REFORM HE SAID DELICATELY MEANWHILE OFFICIALS HAVE BEEN DOLING OUT ENOUGH STATISTICS TO DISPLAY THE TROUBLESOME SIDE OF CHINA'S CONTINUING ECONOMIC BOOM WHILE CHINA'S GNP GREW 128 LAST YEAR AND THE COUNTRY GATHERED 112 BILLION IN ACTUAL FOREIGN BUSINESS INVESTMENT THE CHINESE GOVERNMENT CONTINUED TO PUMP HUGE AMOUNTS OF MONEY INTO THE CRUMBLING STATE SECTOR GNP IS THE TOTAL VALUE OF A NATION'S OUTPUT OF GOODS AND SERVICES INCLUDING THOSE THE NATION PRODUCES ABROAD MR LIU ANNOUNCED THAT IN 1992 ABOUT 45 BILLION YUAN 77 BILLION OR ABOUT 10 OF GOVERNMENT EXPENDITURES WAS SPENT ON SUBSIDIES TO KEEP UNPROFITABLE FACTORIES FROM CLOSING STATE FACTORIES GOT AN ADDITIONAL 23 BILLION YUAN IN FUNDS FOR TAPPING THE POTENTIAL OF EXISTING ENTERPRISES TO HELP SOME OF THEM TRY TO DEVELOP SALABLE PRODUCTS SOME 32 BILLION YUAN WAS SPENT AS WAGE SUBSIDIES TO COMPENSATE WORKERS FOR PRICES BEING DECONTROLLED GETTING A TRUE PICTURE OF CHINA'S FINANCIAL CONDITION IS IMPOSSIBLE ONLY A FEW STATISTICS ARE MADE PUBLIC AND THOSE ARE REVEALED BY SPRINKLING THEM THROUGH VARIOUS LEADERSHIP SPEECHES THE NUMBERS THAT DO BECOME PUBLIC OFTEN CONTRADICT OR BEAR NO RELATION TO EACH OTHER FOR EXAMPLE IN THE FINANCE MINISTER'S ANNUAL WORK REPORT WHICH SERVES AS THE ONLY PUBLIC ANNOUNCEMENT OF CHINA'S BUDGET 1992 EXPENDITURES FOR ALL LEVELS OF GOVERNMENT WERE SAID TO BE 419 BILLION YUAN TWO HOURS EARLIER MR ZOU THE PLANNING CHIEF SAID THAT THE GOVERNMENT HAD INVESTED SOME 510 BILLION YUAN IN FIXED ASSETS IN STATE ENTERPRISES ALONE IN ANNOUNCING CHINA'S FASTGROWING BUDGET DEFICIT THE OFFICIALS OFFERED TWO CHOICES MR LIU ANNOUNCED A HARD DEFICIT OF ABOUT 24 BILLION YUAN MOST OF WHICH WAS FINANCED BY LOANS FROM STATE BANKS BUT HE ALSO ANNOUNCED A COMBINED DEFICIT OF 905 BILLION YUAN THAT INCLUDED 455 BILLION YUAN IN DOMESTIC DEBT AND 21 BILLION YUAN IN FOREIGN LOANS THAT WERE ADDED TO THE HARD DEFICIT USING THESE SAME CALCULATIONS MR LIU PROJECTED A 1993 DEFICIT OF ABOUT 84 BILLION YUAN USING THE ACCOUNTING STANDARDS OF THE WORLD BANK AND INTERNATIONAL MONETARY FUND LAST YEAR CHINA HAD A DEFICIT OF ABOUT 58 BILLION YUAN ABOUT 21 WIDER THAN A YEAR EARLIER THE WORLD BANK/IMF FORMULA USES ONLY THE INTEREST PORTION OF DEBT PAYMENTS IN THE DEFICIT CALCULATION IN A SIGNIFICANT OMISSION THE FINANCE MINISTER DIDN'T REVEAL CREDIT STATISTICS MANY ECONOMISTS AND BANKERS BELIEVE THAT BANK LENDING IN CHINA HAS GONE WAY BEYOND LIMITS CALLED FOR LAST YEAR BY CHINA'S CENTRAL BANK THE PEOPLE'S BANK OF CHINA MANY ECONOMISTS ARE CONCERNED THAT UNCONTROLLED LENDING WILL FUEL A RAPID RISE IN INFLATION BUT CHINA HASN'T PUBLICLY ANNOUNCED ANY CREDIT DATA SINCE THE SECOND QUARTER OF 1992 AT THAT TIME LOANS ISSUED BY CHINA'S BANKING SYSTEM WERE SAID TO BE 19 TRILLION YUAN OR ABOUT 11 HIGHER THAN DEPOSITS THE REASON IS THAT MOST OF CHINA'S BANK LENDING IS MADE UNDER GOVERNMENT ORDERS WHICH TARGETS LOANS TO POOR AREAS AND STATE INDUSTRIES THERE HAVE BEEN MANY REFERENCES TO POSSIBLE BANKING SYSTEM CHANGES PREMIER LI PENG LAST WEEK CALLED BANK REFORM CRUCIAL AND SAID THE BANK OF CHINA AND OTHER SPECIALIZED STATE BANKS SHOULD GRADUALLY RELINQUISH THEIR RESPONSIBILITY OF MAKING LOANS ACCORDING TO GOVERNMENT EDICT MR LI SUGGESTED CREATING DEVELOPMENT BANKS WITH THE SOLE FUNCTION OF DISTRIBUTING LOWINTEREST LOANS TO STATE PROJECTS HE ALSO CALLED FOR THE CREATION OF NEW COMMERCIAL BANKS THAT WOULD BE COMPLETELY RESPONSIBLE FOR THEIR OWN PROFITS AND LOSSES 9303230132 930323 TECHNOLOGY & MEDICINE INTEL BEGINS SHIPMENTS OF ITS NEW PENTIUM CHIP INTEL CORP ANNOUNCED IT HAS BEGUN SHIPPING ITS PENTIUM MICROPROCESSOR THE PENTIUM SUPPLANTS INTEL'S HUGELY POPULAR 486 CHIPS AS THE SOFTWARE COMPANY'S TOPEND SEMICONDUCTOR THE BRAINS OF PERSONAL COMPUTERS INTEL SAID PENTIUM IS FIVE TIMES MORE POWERFUL THAN ITS FIRST 486 CHIPS INTRODUCED IN 1989 AS EXPECTED THE SANTA CLARA CALIF COMPANY DIDN'T DISCUSS PRICING HOWEVER INTEL IS KNOWN TO BE PLANNING TO PRICE THE CHIP AGGRESSIVELY PART OF A STRATEGY DESIGNED TO STEAMROLL COMPETITORS AND ESTABLISH DOMINANCE FOR PENTIUMPOWERED PCS IN A RELATED DEVELOPMENT HEWLETTPACKARD CO SAID IT INTENDS TO USE PENTIUM CHIPS IN A NEW LINE OF SERVERS WHICH ARE MACHINES THAT LINK NETWORKS OF DESKTOP COMPUTERS COMPAQ COMPUTER CORP ANOTHER PC MAKER HAS ALREADY SAID IT WILL USE PENTIUM IN SOME OF ITS SERVERS AND DESKTOP MACHINES IN OVERTHECOUNTER TRADING YESTERDAY INTEL SHARES FELL 75 CENTS TO 113 9303230131 930323 WHO'S NEWS HOWTEK INC HOWTEK INC HUDSON NH DEAN G GERETTI WAS NAMED CHIEF FINANCIAL OFFICER MR GERETTI 53 YEARS OLD IS A FORMER CONTROLLER OF PICTURETEL CORP IN DANVERS MASS HE SUCCEEDS DAVID R BOTHWELL WHO RESIGNED LAST MONTH FOR MEDICAL REASONS HOWTEK MAKES IMAGE SCANNERS FOR THE GRAPHIC ARTS COMMERCIAL PRINTING AND NEWSPAPER INDUSTRIES 9303230130 930323 WHO'S NEWS EDELMAN PUBLIC RELATIONS WORLDWIDE EDELMAN PUBLIC RELATIONS WORLDWIDE NEW YORK ROBERT HUBBELL 44 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT A NEWLY CREATED POSITION HE HAS BEEN MANAGING DIRECTOR FOR THE FIRM'S INTERNATIONAL CORPORATE AND FINANCIAL RELATIONS PRACTICE 9303230129 930323 WHO'S NEWS PACIFIC TELESIS GROUP PACIFIC TELESIS GROUP SAN FRANCISCO MAC KING 55 YEARS OLD WAS NAMED PRESIDENT OF THE NEVADA BELL TELEPHONE CO UNIT SUCCEEDING ROBERT C BLANZ 60 WHO WILL RETIRE MAY 1 THE PRESIDENCY IS THE TOP MANAGEMENT POSITION AT THE UNIT WHICH HAS NO CHAIRMAN CHIEF EXECUTIVE OFFICER OR CHIEF OPERATING OFFICER MR KING CURRENTLY IS VICE PRESIDENT FOR QUALITY MANAGEMENT AT PACIFIC TELESIS AND THE PACIFIC BELL UNIT 9303230128 930323 TENNECO'S PLANS TO RESTRUCTURE CASE UNIT INCLUDE 843 MILLION AFTERTAX CHARGE BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON TENNECO INC SAID IT WOULD TAKE AN AFTERTAX CHARGE OF 843 MILLION TO FURTHER RESTRUCTURE ITS UNPROFITABLE CASE CORP AGRICULTURAL AND CONSTRUCTION EQUIPMENT UNIT ADDITIONALLY MICHAEL WALSH THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO WAS RECRUITED IN SEPTEMBER 1991 TO TURN TENNECO AROUND SPEEDED UP HIS STRATEGY TO STRENGTHEN ITS BALANCE SHEET HE SAID TENNECO WILL RECORD RETROACTIVELY BOTH THE RESTRUCTURING COSTS AND THE AFTERTAX 699 MILLION IN ACCOUNTING CHARGES PREVIOUSLY SCHEDULED FOR 1993 THUS TENNECO RESTATED RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 1992 POSTING NET LOSSES FOR PERIODS PREVIOUSLY REPORTED AS PROFITABLE MR WALSH INSISTED THAT THE BAD NEWS FOR THE BOTTOM LINE IS ONLY TEMPORARY AND HE POINTED OUT THAT OPERATING RESULTS IMPROVED FOR EACH OF TENNECO'S SIX DIVISIONS LAST YEAR THE CONGLOMERATE'S OTHER BUSINESSES INCLUDE SHIPBUILDING NATURAL GAS PIPELINES AUTOMOTIVE PARTS PACKAGING AND CHEMICALS MR WALSH ASSERTED THAT PUTTING THE CHARGES BEHIND TENNECO HELPS POSITION THE COMPANY FOR A STRONG 1993 SEPARATELY TENNECO SAID IT PLANS TO OFFER 235 MILLION NEW COMMON SHARES AT 46875 EACH TO RAISE 11 BILLION HOWEVER THE ACTUAL PRICE WILL BE DETERMINED BY THE MARKET VALUE AT THE TIME OF THE OFFERING THE COMPANY CURRENTLY HAS 1473 MILLION SHARES OUTSTANDING MR WALSH PLANS TO USE PROCEEDS FROM THE NEW SHARES FOR DEBT REDUCTION HE HAS ALREADY SLASHED TENNECO'S DEBT 28 THE COMPANY'S DEBT IS CURRENTLY EQUAL TO 53 OF ITS CAPITAL COMPARED WITH 70 WHEN MR WALSH TOOK OVER WALL STREET'S REACTION WAS MIXED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LATE YESTERDAY TENNECO SHARES WERE QUOTED AT 4775 DOWN 375 CENTS BUT THE TWO MAJOR SECURITY RATINGS COMPANIES STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC BOTH AFFIRMED THEIR PREVIOUS EVALUATIONS OF TENNECO'S 42 BILLION OF DEBT SECURITIES A MOODY'S ANALYSIS DESCRIBED TENNECO'S PLAN TO CONSOLIDATE CERTAIN CASE PLANTS THIN OUT LAYERS OF MANAGEMENT AND TRIM PRODUCTION OF UNPROFITABLE MODELS AS LIKELY TO SUCCESSFULLY ACHIEVE A SUBSTANTIAL PORTION OF THE BENEFITS WITHIN AN APPROPRIATE TIME FRAME STANDARD & POOR'S SAID TENNECO'S PLAN FOR CASE IS EXPECTED TO IMPROVE OPERATING PROFITS AND PRETAX CASH FLOW BY UP TO 200 MILLION ANNUALLY TENNECO'S RESTATED FOURTHQUARTER 1992 REFLECTS A NET LOSS OF 826 MILLION OR 563 A SHARE INCLUDING CHARGES FOR RESTRUCTURING EXCLUDING THOSE CHARGES TENNECO HAD QUARTERLY NET INCOME OF 35 MILLION OR 21 CENTS A SHARE COMPARED WITH A LOSS OF 26 MILLION OR 24 CENTS A SHARE A YEAR EARLIER REVENUE IN 1992 WAS 331 BILLION COMPARED WITH 359 BILLION A YEAR EARLIER FOR THE YEAR THE RETROACTIVE CHARGES PUT TENNECO'S RESTATED NET LOSS AT 132 BILLION OR 929 A SHARE EXCLUDING THE CHARGES TENNECO HAD NET INCOME OF 292 MILLION OR 192 A SHARE INCLUDING A GAIN OF 71 MILLION FROM DISCONTINUED OPERATIONS IN 1991 AFTER RESTRUCTURING CHARGES TENNECO HAD A NET LOSS OF 732 MILLION OR 609 A SHARE REVENUE WAS 1314 BILLION COMPARED WITH 1342 BILLION IN 1991 THE LATEST ROUND OF RESTRUCTURING AT CASE INCLUDES MORE FUNDAMENTAL OPERATING CHANGES THAN THE PREVIOUS WORKFORCE REDUCTIONS AND PLANT CLOSINGS FOR EXAMPLE THE PLANS CALL FOR PRIVATIZING THE ROUGHLY 150 CASE DEALERSHIPS THAT TENNECO OWNS SUCH STORES ARE BELIEVED TO ACCOUNT FOR MORE THAN 50 OF CASE'S SALES ALTHOUGH THEY'RE ONLY ABOUT 25 OF THE TOTAL RETAIL NETWORK BUT THEY'RE BARELY PROFITABLE ACCORDING TO A PERSON CLOSE TO THE OPERATIONS AND MR WALSH APPARENTLY BELIEVES THEY'LL BE MORE EFFICIENT IN THE HANDS OF ENTREPRENEURS OUTSIDE TENNECO HE DECLINED TO COMMENT A SPOKESMAN SAID MR WALSH'S REMARKS ARE RESTRICTED BY SECURITIES AND EXCHANGE COMMISSION RULES BECAUSE OF THE PROPOSED STOCK OFFERING THE COMPANY'S ACCOUNTINGRELATED CHARGES RESULT FROM TWO CHANGES ONE IS THE ADOPTION OF A NEW METHOD OF ACCOUNTING FOR FUTURE RETIREE HEALTH COSTS THE COMPANY WILL TAKE THE ENTIRE 414 MILLION CHARGE FOR THAT PURPOSE AT ONCE INSTEAD OF EXERCISING ITS OPTION UNDER NEW FINANCIAL ACCOUNTING STANDARDS BOARD RULES TO RECORD THE LIABILITIES OVER A 20YEAR PERIOD THE SECOND CHARGE 285 MILLION RESULTS FROM A CHANGE IN TENNECO'S METHOD OF ACCOUNTING FOR CERTAIN OTHER LIABILITIES IT PREVIOUSLY DEFERRED 9303230127 930323 CREDIT MARKETS PRICES OF TREASURYS END WITH MODERATE GAINS AFTER EARLY DECLINES DUE TO OVERSEAS SELLING BY THOMAS D LAURICELLA AND TERENCE DONNELLY SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE US TREASURY MARKET MANAGED TO RECOVER FROM EARLY LOSSES YESTERDAY TO FINISH WITH MODERATE GAINS THE BENCHMARK 30YEAR BOND ROSE LESS THAN 1/8 POINT TO 104 3/32 TO YIELD 680 DOWN FROM 681 ON FRIDAY THE 10YEAR NOTE ROSE 1/8 POINT TO 102 9/32 TO YIELD 5933 DOWN FROM 595 MEANWHILE THREEYEAR NOTES ROSE 1/8 POINT TO 100 27/32 TO YIELD 429 DOWN FROM 433 TREASURYS STARTED OFF THE SESSION ON A WEAK NOTE HURT BY SELLING IN OVERSEAS TRADING THE PRESSURE WAS PRIMARILY CONCENTRATED AMONG LONGER MATURITIES AS SHORTER MATURITIES FOUND SUPPORT FROM INVESTORS VIEWING TREASURYS AS A SAFE HARBOR FROM THE POLITICAL TURMOIL IN RUSSIA BUT OVER THE COURSE OF THE MORNING THE WEIGHT ON THE MARKET BEGAN TO LIFT AND BY THE END OF THE SESSION TREASURYS WERE CHALKING UP DECENT GAINS AMONG SHORTER ISSUES AND MORE MODEST IMPROVEMENT AT THE LONG END PARTICIPANTS SAID THE EARLY DECLINES WERE VIEWED AS BUYING OPPORTUNITIES BY INVESTORS WITH MONEY READY TO BE PUT TO WORK THE MARKET OPENED DOWN THIS MORNING AND WAS IMMEDIATELY GREETED WITH LIGHT BUT STEADY BUYING SAID JOHN COSTAS HEAD OF GOVERNMENT SECURITIES TRADING AT FIRST BOSTON CORP A MAJOR AREA OF SUPPORT FOR TREASURYS CAME FROM A RENEWED SPURT OF MUNICIPAL DEFEASANCE PROGRAMS AS A WAY OF TAKING ADVANTAGE OF CURRENT LOW INTEREST RATES STATE AND LOCAL GOVERNMENTS ARE ISSUING NEW SECURITIES TO REFUND OLDER HIGHER INTEREST DEBT BUT UNTIL THE OUTSTANDING DEBT CAN BE CALLED THE PROCEEDS FROM THE NEW OFFERING ARE PARKED IN TREASURYS GENERALLY INTERMEDIATE SECURITIES WE SAW SOME CONTINUED DEMAND FROM THE MUNICIPAL DEFEASANCE FRONT MR COSTAS OF FIRST BOSTON SAID AND OUT TO THE FIVEYEAR NOTE THERE WAS REASONABLY GOOD INVESTOR DEMAND THAT PROVIDED THE MARKET WITH A SOLID BID MOST OF THE SELLING EARLY IN THE SESSION WAS BY WALL STREET AND SPECULATIVE TRADING ACCOUNTS AND NOT BY INSTITUTIONAL CUSTOMERS PARTICIPANTS STRESSED AS THE BUYING FROM INVESTORS AND DEFEASANCE PROGRAMS PICKED UP SPEED MANY TRADERS FOUND THEMSELVES SCRAMBLING TO COVER SHORTS POSITIONS WHERE THEY HAD SOLD SECURITIES IN HOPES THAT THE MARKET WOULD POST FURTHER DECLINES SO THEY COULD BUY THE ISSUES BACK AT LOWER LEVELS FOR A PROFIT ON THE POSITIVE SIDE INFLATION JITTERS EASED AS THE COMMODITIES RESEARCH BUREAU'S INDEX OF 21 COMMODITIES TOOK A BREATHER FROM ITS RECENT SURGE WITH A DECLINE OF 064 POINT TO 21303 BUT HOLDING BACK THE BOND MARKET WERE CONCERNS THAT THE CRISIS IN RUSSIA WOULD MEAN FEWER DEFENSESPENDING CUTBACKS AND THUS LESS BUDGETDEFICIT REDUCTION TAKING A STEP BACK FROM THE DAYTODAY MOVEMENTS MARKETWATCHERS NOTED TREASURYS REMAIN WELL WITHIN RECENT RANGES WE'RE JUST RATTLING AROUND IN A NARROW RANGE SAID ANDREW O'FLAHERTY A GOVERNMENT SECURITIES TRADING MANAGER AT NOMURA SECURITIES INTERNATIONAL INC IN LATE WHENISSUED TRADING THE TWOYEAR NOTE SCHEDULED TO BE SOLD BY THE TREASURY TOMORROW YIELDED 391 DOWN FROM 397 ON FRIDAY AND THE FIVEYEAR NOTE SCHEDULED TO BE SOLD THURSDAY YIELDED 517 DOWN FROM 520 THE TREASURY IS SCHEDULED TO AUCTION 1525 BILLION OF TWOYEAR NOTES AND 11 BILLION OF FIVEYEAR NOTES YESTERDAY THE TREASURY SOLD 2242 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION DOWN SLIGHTLY FROM LAST WEEK'S AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 294 FOR A COUPONEQUIVALENT YIELD OF 300 COMPARED WITH 300 AND 306 AT LAST WEEK'S AUCTION THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 305 FOR A COUPONEQUIVALENT YIELD OF 314 COMPARED WITH 312 AND 321 AT LAST WEEK'S AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED MARCH 25 THE 13WEEK BILLS MATURE JUNE 24 1993 AND THE 26WEEK BILLS MATURE SEPT 23 1993 CORPORATE BONDS REBOUNDED FROM EARLY SESSION LOWS CLOSING 1/8 POINT HIGHER IN LIGHT TRADING CHOPPY TRADING IN THE TREASURY MARKET PAIRED WITH THE CONTINUING POLITICAL TENSIONS IN RUSSIA KEPT MANY INVESTORS ON THE SIDELINES TRADERS SAID IN THE NEW ISSUE MARKET OIL AND GAS CONCERN DIAMOND SHAMROCK INC PROVIDED THE SESSION'S SOLE INVESTMENTGRADE OFFERING ALTHOUGH THE NUMBER OF NEW HIGHGRADE DEALS IN THE PIPELINE CONTINUES TO BUILD THE DIAMOND SHAMROCK OFFERING YESTERDAY OF 30YEAR DEBENTURES TOTALED 100 MILLION THE DEBENTURES WERE PRICED TO YIELD 8035 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 124 PERCENTAGE POINTS ABOVE THE TREASURY 30YEAR BOND RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS POTOMAC EDISON CO IS SLATED TO ACCEPT BIDS TODAY ON A 75 MILLION ISSUE OF SEVENYEAR FIRST MORTGAGE BONDS THE NONCALLABLE BONDS ARE RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P POTOMAC EDISON IS A UNIT OF ALLEGHENY POWER SYSTEM INC OTHER COMPANIES CONSIDERING NEW OFFERINGS INCLUDE BLACK & DECKER CORP JERSEY CENTRAL POWER & LIGHT CO WACHOVIA CORP AND UNION CARBIDE CORP BANKERS SAID JUNK BONDS ENDED LITTLE CHANGED AS INVESTORS REVIEWED THE MORE THAN TWO DOZEN NEW OFFERINGS DUE IN THE NEXT FEW MONTHS AMONG THEM IS PAMIDA INC A UNIT OF PAMIDA HOLDINGS CORP WHICH PLANS TO SELL NEW JUNK BONDS TODAY THE OMAHA NEB RETAILER OPERATES 178 SMALL AND MEDIUMSIZED DISCOUNT STORES IN 14 MIDWESTERN AND ROCKY MOUNTAIN STATES PAMIDA PLANS TO OFFER 140 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES THROUGH CITICORP SECURITIES MARKETS INC THE OFFERING NONCALLABLE FOR FIVE YEARS IS RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P BANKERS INVOLVED IN THE DEAL EXPECT THE NOTES TO YIELD 115 TO 1175 THE EUROBOND MARKET HAD A BUSY SESSION YESTERDAY LED BY A UNIQUE 1 BILLION EQUITYLINKED OFFERING BY SWISS DRUG COMPANY ROCHE HOLDING LTD THE ACTIVE TRADING CAME DESPITE A NERVOUS MOOD THAT DEPRESSED PRICES ACROSS ALL OF THE MAJOR SECTORS EUROBONDS ARE BONDS DENOMINATED IN US DOLLARS OR OTHER CURRENCIES AND SOLD TO INVESTORS OUTSIDE THE COUNTRY WHOSE CURRENCY IS USED OVERHANGING ALL EUROPEAN BOND MARKETS WAS THE WORSENING POLITICAL SITUATION IN RUSSIA THOUGH IT DOES NOT SEEM TO HAVE HAD A SIGNIFICANT EFFECT SO FAR EXPECTATIONS THAT GERMANY'S CENTRAL BANK THE BUNDESBANK MAY AGAIN EASE ITS INTEREST RATES PROVIDED SUPPORT FOR THE MARKETS IN ADDITION LOCAL WORRIES IN FRANCE WHERE THE RULING SOCIALIST PARTY LOOKS SET FOR A HUMILIATING DEFEAT AFTER THE FIRST ROUND OF NATIONAL ASSEMBLY ELECTIONS BRITISH GOVERNMENT NOTES OR GILTS DROPPED AS WELL WITH THE BENCHMARK 9 COUPON 15YEAR NOTES LOSING MORE THAN 1/2 POINT TO 106 27/32 TO YIELD 820 UP FROM 815 ON FRIDAY SWISS NOTES DROPPED WITH THE BENCHMARK 625 10YEAR NOTES DOWN 005 POINT TO 11290 FOR A YIELD OF 458 LITTLE CHANGED FROM FRIDAY GERMAN GOVERNMENT 7125 10YEAR NOTES DROPPED 033 POINT TO 10286 TO YIELD 671 UP FROM 667 ON FRIDAY PRICES OF MUNICIPAL BONDS ENDED 1/4 TO 3/4 POINT LOWER MUNIS ARE STILL SHAKY AFTER RECENT SHARP LOSSES ON PROFITTAKING YESTERDAY'S DROP WAS LARGELY DUE TO WORRIES THAT THE MARKET WON'T BE ABLE TO ABSORB ALL THE SUPPLY THAT'S ON THE WAY SOME MARKET PARTICIPANTS SAY TODAY MORE THAN 2 BILLION OF NEW TAXEXEMPT ISSUES MAY COME TO THE MARKET THE PUERTO RICO TELEPHONE AUTHORITY'S 6617 MILLION ISSUE OF REVENUE REFUNDING BONDS IS EXPECTED TO BE PRICED BY A LEHMAN BROTHERS GROUP THE CALIFORNIA STATE PUBLIC WORKS BOARD'S 550 MILLION ISSUE OF LEASE REVENUE REFUNDING BONDS IS FOR PRICING BY A MERRILL LYNCH & CO GROUP THE PUERTO RICO TELEPHONE AUTHORITY'S BIG ISSUE WILL INCLUDE BOTH FIXEDRATE BONDS AND SEVERAL DERIVATIVES THE FIXEDRATE BONDS ARE TO HAVE MATURITIES THAT RANGE FROM 19942008 UNINSURED FIXEDRATE BONDS DUE IN 2008 WILL PROBABLY YIELD ABOUT 565 ACCORDING TO MARKET EXPECTATIONS IN SECONDARY TRADING THE SAN JOAQUIN HILLS CALIF TRANSPORTATION CORRIDOR AGENCY'S 675 SENIORLIEN TOLL ROAD REVENUE BONDS OF 2032 CLOSED 3/8 WEAKER AT 97 1/2 TO YIELD 690 PRICES OF MORTGAGEBACKED SECURITIES RECOVERED FROM EARLY MORNING LOSSES TO FINISH ABOUT EVEN IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR APRIL DELIVERY FINISHED 1/32 LOWER AT 100 21/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES BOTH FINISHED UNCHANGED AT 100 25/32 AND 100 18/32 IN THE PRIMARY MARKET TWO REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS WERE ANNOUNCED WITH A TOTAL VALUE OF 1 BILLION ONE DEAL WAS BACKED BY 7 MORTGAGEBACKED SECURITIES WHILE THE OTHER WAS COLLATERALIZED BY 15YEAR 65 MORTGAGE SECURITIES THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9303230126 930323 WHO'S NEWS NATIONAL WESTMINSTER BANK PLC NATIONAL WESTMINSTER BANK PLC LONDON TREVOR HURSTHOUSE 45 YEARS OLD WAS ELECTED AN EXECUTIVE VICE PRESIDENT OF NATIONAL WESTMINSTER BANCORP THE US SUBSIDIARY BASED IN JERSEY CITY NJ MR HURSTHOUSE PREVIOUSLY WAS SENIOR VICE PRESIDENT AND HEAD OF NATWEST BANCORP'S STRUCTURED FINANCE DIVISION MR HURSTHOUSE WHO CONTINUES TO HEAD STRUCTURED FINANCE SUCCEEDS HOWARD ROSOF 51 AN EXECUTIVE VICE PRESIDENT WHO WILL HEAD THE CREDIT POLICY AND ADMINISTRATION GROUP A NEWLY CREATED POSITION AT NATWEST NATIONAL WESTMINSTER BANK IS AN INTERNATIONAL BANKING AND FINANCIAL SERVICES ORGANIZATION 9303230125 930323 TECHNOLOGY & MEDICINE FDA'S KESSLER CALLS FOR TOUGH SYSTEM OF CONTROLS ON US SEAFOOD INDUSTRY BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FDA COMMISSIONER DAVID KESSLER CITING A RISE IN FOODBORNE ILLNESS SAID HE'S PREPARED TO IMPOSE TOUGH NEW QUALITYCONTROL REQUIREMENTS ON THE SEAFOOD INDUSTRY IN A SPEECH TO A FOODPOLICY CONFERENCE HERE DR KESSLER CALLED FOR A NEW SYSTEM OF CONTROLS ON SEAFOOD PRODUCERS PROCESSORS AND DISTRIBUTORS IT WOULD DEAL WITH SUCH MATTERS AS TEMPERATURE AND HANDLING TECHNIQUES AND WOULD REQUIRE THEM TO MAINTAIN DETAILED PAPERWORK TO DEMONSTRATE THEIR DILIGENCE TO FDA INSPECTORS AT THE SAME TIME DR KESSLER SAID THE FDA NEEDS GREATER ENFORCEMENT POWERS TO TRACK DOWN ADULTERATED PRODUCTS BUT HE DIDN'T SPECIFY WHAT POWERS HE WAS SEEKING ALTHOUGH DR KESSLER FOCUSED ON SEAFOOD FDA OFFICIALS SAID HE PLANS BROADER INITIATIVES DEALING WITH OTHER TYPES OF FOOD AS WELL OUR CURRENT SYSTEM OF FOODSAFETY REGULATION IS REACTIVE HE SAID WHAT WE NEED IS A SYSTEM THAT IS BUILT ON PREVENTING PROBLEMS IN THE FOOD SUPPLY AND ONE THAT GIVES REGULATORY AGENCIES THE TOOLS TO KNOW THAT THE SYSTEM IS WORKING THE COMMENTS WERE DR KESSLER'S MOST DEFINITIVE ON FOOD SAFETY SINCE THE TAINTED HAMBURGER CRISIS ON THE WEST COAST WHERE AT LEAST TWO CHILDREN DIED AND HUNDREDS OF PEOPLE BECAME ILL AFER EATING AT A FASTFOOD RESTAURANT AGRICULTURE SECRETARY MIKE ESPY ALREADY HAS ANNOUNCED PLANS TO HIRE ADDITIONAL INSPECTORS PLACE WARNING LABELS ON MEAT AND POULTRY AND MOVE TOWARD A SCIENCEBASED INSPECTION SYSTEM DR KESSLER GAVE A VARIETY OF REASONS WHY FOODBORNE ILLNESS APPEARS TO BE ON THE RISE AND WHY SEAFOOD POSES A TRICKY PROBLEM FOR FEDERAL REGULATORS CITING ESTIMATES THAT 9000 DEATHS A YEAR ARE CAUSED BY FOODBORNE ILLNESS DR KESSLER SAID THAT NEW PATHOGENS HAVE EMERGED RECENTLY AND THAT THERE'S GREATER OPPORTUNITY FOR CONTAMINATION AS A RESULT OF MORE EXTENSIVE PROCESSING INCREASED HANDLING AND TRANSPORTATION TO MORE DISTANT LOCATIONS THE SEAFOOD INDUSTRY HE SAID IS HIGHLY DECENTRALIZED AND MADE UP OF THOUSANDS OF SMALL BUSINESSES AND FACILITIES MUCH OF THE PRODUCT IS PROCESSED AT SEA AND MUCH IS CAUGHT BY RECREATIONAL FISHERMEN MOREOVER MOST OF THE SEAFOOD EATEN IN THE US IS IMPORTED USUALLY FROM COUNTRIES WITHOUT ADVANCED REGULATORY CONTROLS THE COMMISSIONER SAID THERE'S AN UNACCEPTABLE NUMBER OF DEATHS AND ILLNESSES AMONG HIGHRISK INDIVIDUALS FROM VIBRIO BACTERIA WHICH OCCURS IN RAW SHELLFISH HE ADDED THAT THE FDA IS CONCERNED ABOUT THE HIGH LEVEL OF DECOMPOSITION IT'S SEEING IN SOME SEAFOOD PRODUCTS MOREOVER A SURVEY OF HIGHRISK DOMESTIC PROCESSORS FOUND THAT SOME COMPANIES HAD NO CONTROLS TO MONITOR PASTEURIZATION THE INTEGRITY OF CONTAINERS AND STORAGE TEMPERATURES INDUSTRY OFFICIALS GENERALLY WELCOMED THE PLANNED CHANGES AS A WAY TO BOOST CONSUMER CONFIDENCE AND ENSURE A MORE UNIFORM SYSTEM OF REGULATION LEE WEDDIG EXECUTIVE VICE PRESIDENT OF THE NATIONAL FISHERIES INSTITUTE SAID THIS IS A POSITIVE MOVE ON THE PART OF THE FDA AS FAR AS WE'RE CONCERNED HE SAID THE INDUSTRY ALREADY HAS BEEN WORKING ON MODEL QUALITYCONTROL SYSTEMS THE FDA AND THE COMMERCE DEPARTMENT HAVE BEEN CONDUCTING PILOT STUDIES FOR TWO YEARS ON QUALITYCONTROL REGIMES THE FDA IS STILL WORKING WITH INDUSTRY ON PRECISELY WHAT SORT OF SYSTEM TO IMPOSE IT HOPES TO PROPOSE A REGULATION BY LATE SPRING OFFICIALS SAID THE AGENCY CAN ACT WITHOUT RECEIVING ADDITIONAL AUTHORITY FROM CONGRESS THE NEW APPROACH PROBABLY WON'T RESULT IN AN INCREASE OR DECLINE IN THE NUMBER OF VISITS BY FDA INSPECTORS TO SEAFOOD FACILITIES CURRENTLY ALL FIRMS ARE VISITED AT LEAST EVERY OTHER YEAR WITH HIGHRISK FIRMS TARGETED EVERY YEAR 9303230124 930323 WHO'S NEWS ANGELES NAMES TUTHILL PRESIDENT AND CHIEF AND GELLER CHAIRMAN LOS ANGELES ANGELES CORP IN ANOTHER SHAKEUP OF TOP MANAGEMENT NAMED WILLIAM E TUTHILL 58 YEARS OLD AS PRESIDENT AND CHIEF EXECUTIVE AND MARSHALL S GELLER 53 AS CHAIRMAN MR TUTHILL PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY'S ANGELES HOUSING CONCEPTS INC SUBSIDIARY SUCCEEDS CARROLL D VINSON 52 MR VINSON WAS ELECTED PRESIDENT AND CHIEF EXECUTIVE JUST SIX WEEKS AGO SUCCEEDING WILLIAM H ELLIOTT 60 IN THOSE POSTS MR GELLER A PRIVATE INVESTOR AND DIRECTOR OF THIS REAL ESTATE INVESTMENT CONCERN SINCE 1983 SUCCEEDS MR ELLIOTT AS CHAIRMAN MR ELLIOTT SAID LAST YEAR THAT HE MIGHT RESIGN ANGELES DIDN'T SAY WHY MR VINSON LEFT SO SOON AFTER JOINING THE COMPANY AND MR VINSON COULDN'T BE REACHED FOR COMMENT A CERTIFIED PUBLIC ACCOUNTANT MR VINSON WAS FORMERLY PRESIDENT OF THE INSIGNIA CAPITAL CORP UNIT OF INSIGNIA FINANCIAL GROUP INC GREENVILLE SC WHICH ASSUMED MANAGEMENT OF ANGELES'S REAL ESTATE PARTNERSHIP BUSINESS SEPARATELY ANGELES SAID IT RETAINED CANYON PARTNERS TO SERVE AS ADVISER IN CONNECTION WITH RESTRUCTURING OBLIGATIONS AND RAISING ADDITIONAL CAPITAL 9303230123 930323 WHO'S NEWS ARMCO INC ARMCO INC PARSIPPANY NJ DAVID G HARMER WAS NAMED CHIEF FINANCIAL OFFICER OF THIS MAKER OF STAINLESS AND ELECTRICAL STEEL MR HARMER 49 YEARS OLD WAS VICE PRESIDENT AND CORPORATE CONTROLLER OF FMC CORP HE SUCCEEDS WALLACE B ASKINS 63 WHO RETIRED LATE LAST YEAR 9303230122 930323 WHO'S NEWS MEDEX INC MEDEX INC HILLIARD OHIO PHILLIP D MESSINGER 57 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS MEDICAL PRODUCTS CONCERN MR MESSINGER WHO REMAINS PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDS C CRAIG WALDBILLIG 67 AS CEO MR WALDBILLIG REMAINS CHAIRMAN 9303230121 930323 MENTION ARBOR DAY TO A JAPANESE AND YOU MAY MOVE HIM TO TEARS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THIS NEVER HAPPENED TO JOHNNY APPLESEED THE JAPANESE GOVERNMENT IS BEING SUED BY A GROUP OF IRATE WATERYEYED CITIZENS WHO CHARGE THAT JAPAN'S REFORESTATION PROGRAM HAS CURSED THEM WITH CEDARPOLLEN ALLERGIES IF THIS TAKES 20 YEARS I'M WILLING TO FIGHT TO THE END SAYS SHIGEJIRO SUGIYAMA LAWYER FOR THE GROUP AND A COPLAINTIFF JAPAN REFORESTED ITS DENUDED HILLSIDES WITH CEDAR TREES IN THE POSTWAR YEARS WHEN CEDAR WOOD WAS IN DEMAND FOR HOUSE BUILDING TODAY THE MATURE TREES SPEW CLOUDS OF ALLERGYPROVOKING POLLEN AND THE JAPANESE PREFER CONCRETE HOMES THE MINISTRY OF AGRICULTURE FORESTRY AND FISHERIES IS VERY VERY GOOD AT PLANTING TREES SINCE 1945 OFFICIALS SAY THEY'VE PLANTED 45 MILLION HECTARES 111 MILLION ACRES OF CEDAR TREES WE WANT TO GREEN UP' JAPAN SAYS TETSUO NISHIMURA OF THE MINISTRY'S RESEARCH DIVISION CEDARS ARE VERY POPULAR AMONG THE JAPANESE AT LEAST THEY'RE POPULAR IN THEIR FIRST 15 YEARS OF LIFE WHEN THEY PRODUCE ABOUT 20 MILLION SPORES PER HECTARE AT 30 YEARS THE AGE OF ABOUT HALF THE TREES PLANTED SO FAR THE CEDARS PRODUCE 120 MILLION SPORES PER HECTARE THAT'S A LOT OF RUNNY NOSES MR SUGIYAMA'S GROUP WANTS 60 MILLION YEN 517000 IN COMPENSATION ENOUGH TO BUY EACH OF THE 11 PLAINTIFFS 44346 BOXES OF TISSUES AT A TYPICAL PHARMACY WITH ANOTHER 11 BILLION CEDARS DUE TO MATURE THEY MAY NEED THEM THE PLAINTIFFS AREN'T ALONE NOT ONLY DOES JAPAN'S HEALTH MINISTRY FIGURE THAT 12 MILLION JAPANESE ARE PRONE TO THE ATTACKS BUT THE PROBLEM IS ALSO SPREADING TO THE ANIMAL WORLD TADASHI HOSHINO KEEPER OF THE KIRYUGAOKA ZOO IN CENTRAL JAPAN'S GUNMA PREFECTURE SAYS LOTS OF HIS MONKEYS ARE STARTING TO SUCCUMB THEY RUB THEIR EYES THEIR NOSES RUN HE SAYS THEY DON'T MOVE MUCH BUT THEY KEEP EATING SO THEY'RE GETTINGT FOR HUMANS THERE ARE CURES INCLUDING EYE DROPS PILLS AND POWDERS MANY JAPANESE WEAR WHITE FACE MASKS IN THE FEBRUARYJUNE POLLEN SEASON DURING THE SEASON ONE MIGHT THINK TOKYO IS PEOPLED WITH ABSENTMINDED SURGEONS MR SUGIYAMA BATHES HIS NOSE AND EYES WITH MILK AND LOOKS FORWARD TO HIS DAY IN COURT I WAS BORN TO DO A LAWSUIT ON POLLEN ALLERGIES HE SAYS NOTING THAT HIS FAMILY NAME JUST HAPPENS TO MEAN CEDAR MOUNTAIN 9303230120 930323 WHO'S NEWS SERAGEN INC SERAGEN INC HOPKINGTON MASS GEORGE W MASTERS WAS NAMED TO THE NEW POSITION OF VICE CHAIRMAN AT THIS BIOTECHNOLOGY CONCERN MR MASTERS IS THE FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF VERAX CORP A BIOPHARMACEUTICAL COMPANY BASED IN LEBANON NH 9303230118 930323 FINANCING BUSINESS ALEXANDER & ALEXANDER SERVICES INC ALEXANDER & ALEXANDER SERVICES INC NEW YORK THE INSURANCE BROKERAGE CONCERN SAID IT COMPLETED A PRIVATE PLACEMENT OF 23 MILLION SHARES OF A CONVERTIBLE PREFERRED STOCK RAISING 111 MILLION IN NET PROCEEDS THE COMPANY ISSUED THE 3625 SERIES A PREFERRED TO INCREASE ITS CAPITAL BASE FOLLOWING A 1575 MILLION SPECIAL CHARGE IT TOOK IN THE FOURTH QUARTER FOR SOLD OR DISCONTINUED UNDERWRITING BUSINESSES THE COMPANY SAID THE PREFERRED ISSUE RESTORES ITS FINANCIAL RATIOS TO SOUND LEVELS COMPARABLE TO THOSE BEFORE THE SPECIAL CHARGE 9303230117 930323 WHO'S NEWS KROLL ASSOCIATES KROLL ASSOCIATES NEW YORK ROBERT P CONNOLLY 39 YEARS OLD WAS NAMED MANAGING DIRECTOR AND GENERAL COUNSEL OF THE INTERNATIONAL CORPORATEINVESTIGATIONS AND CONSULTING FIRM HE SUCCEEDS DANIEL KARSON WHO HAS BEEN ASSIGNED NEW AREAS OF RESPONSIBILITY AT THE FIRM MR CONNOLLY PREVIOUSLY WAS MANAGING DIRECTOR AND GENERAL COUNSEL OF EQUITABLE CAPITAL MANAGEMENT CORP A UNIT OF THE EQUITABLE COS 9303230116 930323 INTERNATIONAL UNILEVER TO ADJUST DIVIDEND LONDON ANGLODUTCH FOOD AND PERSONAL PRODUCTS COMPANY UNILEVER PLC SAID IT PLANS TO ADJUST ITS FINAL DIVIDEND FOR 1992 UP TO 1613 PENCE 243 CENTS A SHARE FROM 1560 PENCE TO REFLECT PLANNED CHANGES IN UK TAX RULES UNILEVER SAID THOUGH THAT THE FINAL DIVIDEND PAID BY ITS DUTCH SIDE UNILEVER NV WILL REMAIN AT THE 430 GUILDERS 233 IT PROPOSED FEB 23 UNILEVER SAID THE UK DIVIDEND ADJUSTMENT IS BEING MADE IN LIGHT OF CHANGES IN ADVANCE CORPORATION TAX ANNOUNCED BY CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT IN HIS ANNUAL BUDGET LAST TUESDAY 9303230115 930323 WHO'S NEWS TRITON ENERGY CORP TRITON ENERGY CORP DALLAS GORDON M SMART WAS NAMED SENIOR VICE PRESIDENT AND CHIEF GEOLOGIST OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY MR SMART WAS PREVIOUSLY VICE PRESIDENT EXPLORATION 9303230114 930323 ABREAST OF THE MARKET INDUSTRIAL AVERAGE DECLINES 810 ON FEARS ABOUT RUSSIAN TURMOIL BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS SLIPPED ON FEARS THAT POLITICAL TURMOIL IN RUSSIA WILL UPSET PRESIDENT CLINTON'S ECONOMIC PLANS THE DOW JONES INDUSTRIAL AVERAGE ENDED WITH AN 810POINT LOSS TO 346348 ALTHOUGH IT RECOVERED FROM ITS WORST LEVELS OF THE DAY DONALDSON LUFKIN & JENRETTE TRADER JOHN BURNETT SAID INVESTORS WERE INCLINED TO SELL STOCK NOW IN CASE THE RUSSIAN SITUATION DETERIORATED AND PUSHED STOCK PRICES EVEN LOWER LATER ON THERE'S ENOUGH CONCERN BOTH WITH RUSSIA AND WITH INTEREST RATES THAT SOME INVESTORS ARE SELLING SO THEY CAN SLEEP WELL AT NIGHT MR BURNETT SAID RISING INTEREST RATES HELPED TO DEPRESS STOCKS EARLY IN THE DAY BUT A REVERSAL IN THE BOND MARKET EASED THOSE CONCERNS IN THE AFTERNOON AS THE BOND MARKET RECOVERED FROM EARLY LOSSES TO MARGINAL GAINS THE DOW JONES INDUSTRIALS LIFTED FROM ABOUT A 20POINT LOSS TO WITHIN A FEW POINTS OF FRIDAY'S CLOSE THE AVERAGE ENDED ON A DECLINE HOWEVER STANDARD & POOR'S 500STOCK INDEX EASED 130 TO 44888 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 084 TO 24734 THE DOW JONES EQUITY MARKET INDEX FELL 130 TO 42570 DECLINERS OUTPACED ADVANCERS 1199 TO 691 BIG BOARD VOLUME TOTALED 231900000 SHARES COMPARED WITH FRIDAY'S 293960000 SHARES MR BURNETT SAID TRADERS WILL BE WATCHING DEVELOPMENTS IN RUSSIA FOR CLUES TO THE MARKET'S DIRECTION EARLY TODAY RUSSIAN PRESIDENT BORIS YELTSIN FACES POSSIBLE IMPEACHMENT IN THE WAKE OF HIS DECLARATION OF EMERGENCY RULE SOME STOCK WATCHERS SAY THE MARKET HAS BEEN LOOKING FOR REASONS TO RETREAT AND HAS TAKEN THE RUSSIAN SITUATION AS A HANDY EXCUSE EUGENE E PERONI DIRECTOR OF TECHNICAL RESEARCH AT JANNEY MONTGOMERY SCOTT NOTED THAT AVERAGE DAILY VOLUME HAS BEEN TRENDING LOWER SINCE THE MARKET'S EARLY FEBRUARY PEAK A SIGN OF WEAKENING RESOLVE WE'VE SEEN MONEY MANAGERS SELLING INTO STRENGTH OVER THE LAST SEVERAL DAYS SAID MR PERONI HE ADDED THAT FIRSTQUARTER PROFIT REPORTS AND THE TAX RETURN SEASON ARE LIKELY TO SCUTTLE ENTHUSIASM FOR STOCKS FOR A WHILE HE DOESN'T EXPECT THE MARKET TO SLIDE FAR BEFORE REGAINING ITS FOOTING HOWEVER SOME CRACKS IN FIRSTQUARTER EARNINGS ARE ALREADY BEGINNING TO APPEAR YESTERDAY CADENCE DESIGN STUNNED INVESTORS WITH A TROUBLING FIRSTQUARTER OUTLOOK THE COMPANY SAID IT EXPECTS TO REPORT A LOSS IN THE PERIOD COMPARED WITH A PROFIT OF 21 CENTS A SHARE A YEAR AGO SOME ANALYSTS HAD EXPECTED THE COMPANY TO EARN AROUND 29 CENTS A SHARE IN THE CURRENT QUARTER THE NEWS SENT CADENCE DESIGN'S STOCK DOWN 6 POINTS TO 10 1/2 TOPPING THE MOST ACTIVE LIST ON VOLUME OF NEARLY SIX MILLION SHARES IT WASN'T ALL BAD NEWS ON WALL STREET MARVEL ENTERTAINMENT GROUP JUMPED 4 1/4 TO 23 3/4 AFTER RONALD PERELMAN'S MACANDREWS & FORBES HOLDINGS OFFERED TO BUY AS MANY AS 11 MILLION SHARES FOR 25 EACH THE STAKE WOULD BOOST MACANDREWS & FORBES'S HOLDINGS TO ABOUT 80 FROM 60 OF MARVEL'S TOTAL SHARES OUTSTANDING GOLD STOCKS CONTINUED TO CLIMB AMERICAN BARRICK ROSE 5/8 TO 16 7/8 PLACER DOME RALLIED 1/2 TO 14 7/8 AND HOMESTAKE MINING GAINED 1/8 TO 13 7/8 MEDICAL TECHNOLOGY STOCKS REBOUNDED MEDTRONIC ROSE TWO TO 72 1/4 US SURGICAL ROSE 5/8 TO 56 5/8 AND ABBOTT LABORATORIES GAINED 7/8 TO 24 3/4 TENNECO EASED 3/8 TO 47 3/4 AFTER ANNOUNCING A 920 MILLION RESTRUCTURING CHARGE AND RESTATING 1992 FOURTHQUARTER EARNINGS AS A LOSS THE CHARGE WILL COVER EFFORTS TO BRING THE COMPANY'S JI CASE UNIT TO PROFITABILITY THE FARM EQUIPMENT MAKER HAS BEEN LOSING MONEY FOR YEARS ANALYSTS SAID DEERE & CO WILL GAIN MARKET SHARE AS A RESULT OF TENNECO'S MOVES DEERE ROSE 1 1/8 TO 53 7/8 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 319 TO 41918 THERE WERE 331 DECLINERS AND 203 ADVANCERS 9303230113 930323 WHO'S NEWS XLI CORP XLI CORP WOBURN MASS DUANE MAYO 41 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS MAKER OF LASER PRINTERS EFFECTIVE APRIL 1 HE WAS CORPORATE COMPTROLLER AT HOWTEK CORP HE WILL SUCCEED ANTHONY D'AMELIO 65 WHO IS RETIRING FROM THE POSITION BUT WILL CONTINUE AS A SPECIAL ADVISER TO THE BOARD 9303230112 930323 WORLD MARKETS EUROPEAN PRICES SKID ON RUSSIA'S POLITICAL CRISIS TOKYO SHARES CLIMB ON HOPES FOR BIG STIMULUS A WALL STREET JOURNAL NEWS ROUNDUP RUSSIAN INSTABILITY RATTLED INVESTORS THROUGHOUT EUROPE CONTRIBUTING TO A 12 DECLINE FOR LONDON SHARES MONDAY AND A 22 DROP IN FRANKFURT TOKYO STOCK PRICES CLIMBED IN THIN DEALINGS AS SENTIMENT REMAINED BUOYANT AFTER TWO WEEKS OF STRONG GAINS AND INVESTORS ANTICIPATED A HUGE JAPANESE FISCALSTIMULUS PACKAGE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 362 POINTS TO 28639 THE FT 30STOCK INDEX SHED 261 POINTS ALSO 12 TO 22425 22686 VOLUME TOTALED 5291 MILLION SHARES COMPARED WITH 8241 MILLION SHARES IN THE PREVIOUS SESSION LONDON PARTICIPANTS WERE UNSETTLED BY THE SHOWDOWN OVER POLITICAL POWER IN RUSSIA AND FEARED A CIVIL WAR COULD RESULT IN A HUGE EMIGRATION TO GERMANY WHICH WOULD HURT THAT STRUGGLING ECONOMY AND THOSE OF ITS EUROPEAN TRADING PARTNERS MEANWHILE BRITAIN'S MERCHANDISE TRADE GAP WITH NONEUROPEAN COMMUNITY NATIONS WIDENED IN JANUARY LEAVING BRITAIN MORE DEPENDENT ON EXPORTS TO EUROPE AND ILLUSTRATING THE IMPORTANCE OF A PANEUROPEAN ECONOMIC RECOVERY TO BRITISH COMPANIES IN FRANKFURT THE DAX 30STOCK INDEX PLUMMETED 3741 POINTS TO 166140 IN THIN VOLUME THE DROP WAS SPARKED BY FEARS OF A POWER VACUUM IN RUSSIA AND THE DAX OPENED BELOW THE 1680 SUPPORT POINT MOREOVER AS THE MARKET'S TINY GAIN FRIDAY RESULTED LARGELY FROM EXPIRATION OF OPTIONS RATHER THAN A BUYING TREND THIS LEFT THE MARKET VULNERABLE TO A CORRECTION PARIS STOCKS LOST 12 AMID JITTERS ABOUT THE RUSSIAN POLITICAL SITUATION AND THE FRENCH FRANC'S FUTURE WHICH OVERSHADOWED THE RESULTS OF FRANCE'S LEGISLATIVE ELECTIONS IN WHICH A LANDSLIDE VICTORY BY A CENTERRIGHT COALITION HAD BEEN EXPECTED AMSTERDAM SHARES WERE DRIVEN DOWN BY A LOWER DOLLAR WORRIES ABOUT RUSSIA AND WEAK MARKETS IN LONDON AND THE US IN BRUSSELS PRICES ALSO FELL BROADLY ON THE RUSSIAN CONCERNS AND FAILURE BY BELGIUM'S POLITICIANS TO PRODUCE A BUDGET PACKAGE AS SCHEDULED MILAN SHARES SLUMPED AMID FRUSTRATION ABOUT ITALIAN POLITICAL INSTABILITY AND THE SLOW PACE OF ECONOMIC REFORM IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 19073 POINTS FRIDAY ADVANCED 24722 OR 13 TO 1878439 WHICH ALSO WAS THE INTRADAY HIGH ON TUESDAY THE NIKKEI FELL 10224 POINTS TO CLOSE THE MORNING SESSION AT 1868215 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES DOWN SHARPLY FROM 6309 MILLION SHARES ON FRIDAY GAINERS OUTPACED LOSERS 626386 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH EDGED DOWN 157 POINTS FRIDAY ROSE 701 TO 141370 THE BULK OF BUYING IN TOKYO WAS CONCENTRATED IN LARGECAPITALIZATION AND RAILWAY SHARES ENCOURAGING JAPANESE MONEYSUPPLY DATA LATE FRIDAY BOOSTED BULLS BUT CAUTION WAS THE WATCHWORD AS THE POLITICAL SITUATION IN RUSSIA CONTINUED TO DETERIORATE OVER THE WEEKEND THE NIKKEI MOVED UP FROM 1855985 FOLLOWING FUTURES HIGHER AT THE OPENING THEN SPENT MOST OF THE DAY VACILLATING AT HIGHER LEVELS MORE THAN HALF OF THE SESSION'S GAINS CAME FROM AGGRESSIVE ARBITRAGE BUYING IN THE LAST HALFHOUR OF TRADING UNDERLYING BULLISHNESS CONTINUED BECAUSE OF PROSPECTS FOR A HUGE JAPANESE GOVERNMENT STIMULUS AS WELL AS EXPECTATIONS THAT DATA THIS WEEK MAY SHOW EARLY SIGNS OF AN ECONOMIC RECOVERY SYDNEY SHARES FELL ON PROFITTAKING AFTER LAST WEEK'S STRONG GAINS HONG KONG STOCKS SLIPPED IN QUIET TRADING AVOIDING BIG DECLINES DESPITE WORRIES ABOUT AN ESCALATING SINOBRITISH POLITICAL ROW OVER THE TERRITORY'S FUTURE GOVERNANCE SINGAPORE PRICES SLID AS PLAYERS CONSOLIDATED POSITIONS TAIPEI EQUITIES CLIMBED AMID STRONG COVERING OF SHORT OR OVERSOLD POSITIONS IN THE FINAL 15 MINUTES OF TRADING IN SEOUL DETAILED ECONOMYSPURRING MEASURES BY THE SOUTH KOREAN GOVERNMENT FAILED TO SUSTAIN LAST WEEK'S BULL RUN AND LEFT THE MARKET SHARPLY LOWER AMID WIDESPREAD CAUTIOUSNESS AMONG CORPORATE DEVELOPMENTS IN TOKYO MITSUBISHI CORP JUMPED 37 YEN OR 39 TO 995 YEN 857 DESPITE ITS ANNOUNCEMENT THAT IT EXPECTS TO TAKE A 28 BILLIONYEN 2413 MILLION SPECIAL CHARGE IN THE YEAR ENDING MARCH 31 FROM RESTRUCTURING ITS MC FINANCE UNIT THE TRADING COMPANY SAID THE SPECIAL CHARGE PROBABLY WILL PUSH DOWN ITS PREVIOUS FORECAST OF NET INCOME OF 20 BILLION YEN FOR THE PARENT AND 40 BILLION YEN FOR THE GROUP MITSUBISHI STILL EXPECTS PARENTCOMPANY PRETAX PROFIT OF 70 BILLION YEN IN LONDON BA T INDUSTRIES ADDED TWO PENCE TO 994 PENCE 1482 AFTER AN 18 PENCE JUMP THAT WAS DRAGGED DOWN BY THE OVERALL MARKET'S RETREAT THE FINANCIAL SERVICES AND TOBACCO COMPANY IS OFFERING SHAREHOLDERS AN INCREASED DIVIDEND THROUGH NEW ORDINARY SHARES VALUED AT 339 PENCE EACH AT THIS PRICE THE NEW SHARES OFFER INVESTORS MORE THAN 50 OF THE CASH VALUE OF THE 1992 FINAL DIVIDEND BA T HAS RECOMMENDED A FINAL CASH PAYOUT OF 226 PENCE A SHARE AND OFFERED A SCRIP DIVIDEND OF EQUAL VALUE IN FRANKFURT TWO GERMAN BANKS DISAPPOINTED INVESTORS BY ANNOUNCING THAT THEY WOULDN'T RAISE THEIR DIVIDENDS COMMERZBANK SLUMPED 1050 MARKS OR 35 TO 28950 MARKS 17691 THE COMMERCIAL BANK CONFIRMED THAT IT WILL LEAVE ITS 1992 DIVIDEND UNCHANGED AT 10 MARKS A SHARE GROUP EARNINGS FOR 1992 JUMPED 53 TO 8378 MILLION MARKS 512 MILLION FROM A YEAR EARLIER BECAUSE OF THE FIRSTTIME CONSOLIDATION OF THE BERLINER COMMERZBANK UNIT BAYERISCHE HYPOTHEKEN & WECHSELBANK LOST 1590 OR 35 TO 438 GROUP OPERATING PROFIT FOR 1992 ROSE 16 TO 16 BILLION MARKS BUT HYPO BANK LEFT ITS 1992 DIVIDEND UNCHANGED AT 13 MARKS A SHARE IN MILAN MONTEDISON SKIDDED 59 LIRE OR 45 TO 1240 LIRE 79 US CENTS THE COMPANY AGREED TO SELL ITS FARMITALIA CARLO ERBA PHARMACEUTICAL UNIT TO KABI PHARMACIA OF SWEDEN IN A MULTISTEP DEAL VALUED AT ABOUT 12 BILLION SOME ANALYSTS SAID THE SALE PRICE SEEMED LOW IN MADRID REPSOL DROPPED 50 PESETAS OR 18 TO 2680 PESETAS 2291 THE SPANISH STATERUN OIL AND NATURAL GAS COMPANY IS NEGOTIATING AN ASSET SWAP WITH THE SHELL ESPANA UNIT OF THE ROYAL DUTCH/SHELL GROUP PETROLEUM COMPANY NEWS REPORTS IN SPAIN SAID REPSOL CONFIRMED CONTACTS BETWEEN THE COMPANIES BUT COULDN'T CONFIRM TALKS ON AN ASSET SWAP 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 9303230111 930323 WHO'S NEWS SHEARSON'S CLARK TO GET 22 MILLION IN SEVERANCE MODEST BY OLD STANDARDS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HOWARD L CLARK JR SHEARSON LEHMAN BROTHERS HOLDINGS INC'S OUSTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL RECEIVE A SEVERANCE PACKAGE OF ABOUT 22 MILLION ACCORDING TO A PROXY FILED WITH REGULATORS BY SHEARSON PARENT AMERICAN EXPRESS CO THE SEVERANCE PACT RELATIVELY MEAGER ON WALL STREET IF NOT ELSEWHERE REFLECTS THE TREND TOWARD SMALLER SEVERANCE PACKAGES IN CORPORATE AMERICA IN RECENT YEARS INDEED MR CLARK'S PAYMENT PALES IN COMPARISON TO THE 10 MILLION IN SALARY AND BENEFITS RECEIVED BY FORMER SHEARSON CHAIRMAN PETER A COHEN WHO WAS OUSTED IN 1990 MR CLARK'S PAYOUT ALSO SUGGESTS THAT AMERICAN EXPRESS DIRECTORS REMAIN CAUTIOUS AMID CRITICISM FROM INSTITUTIONAL INVESTORS AND OTHERS OVER THE FIRM'S STOCKMARKET PERFORMANCE IN RECENT YEARS WALL STREET EXECUTIVES SAID THE AMERICAN EXPRESS BOARD IS VERY VERY SENSITIVE AFTER EVERYTHING THAT'S GONE ON TO APPEAR TO BE OVERLY GENEROUS TO ANYBODY A PERSON FAMILIAR WITH THE PROCESS SAID SHEARSON DECLINED TO COMMENT AS DID MR CLARK THE PROXY SENT TO THE SECURITIES AND EXCHANGE COMMISSION LATE LAST WEEK SAYS SHEARSON IS FINALIZING AN AGREEMENT WITH MR CLARK IN WHICH HE WILL RESIGN BY THE END OF MARCH AND WILL CONTINUE TO PROVIDE TRANSITION AND ADVISORY SERVICES UNTIL THE EARLIER OF FINDING A NEW JOB OR APRIL 15 1994 AS PART OF HIS SEVERANCE PACT MR CLARK WILL RECEIVE 525000 WHICH REFLECTS HIS ANNUAL SALARY THAT WILL BE PAID IN TWO INSTALLMENTS THE FIRST PAYMENT 200000 WILL BE DOLED OUT WHEN HE RESIGNS AND THE REMAINDER TO BE PAID OVER ONE YEAR THE PROXY SAYS MR CLARK ALSO WILL RECEIVE 404670 REPRESENTING THE FINAL INSTALLMENT OF PERFORMANCERELATED GRANTS OF AMERICAN EXPRESS STOCK MOREOVER MR CLARK WILL RECEIVE 13 MILLION PREVIOUSLY AWARDED UNDER HIS 1992 INCENTIVE COMPENSATION AGREEMENT THE PROXY SAYS BESIDES HIS SEVERANCE PACKAGE MR CLARK ALSO HOLDS A SUBSTANTIAL AMOUNT OF PROFITABLE OPTIONS ON AMERICAN EXPRESS STOCK AS WELL AS RESTRICTED STOCK PEOPLE FAMILIAR WITH AMERICAN EXPRESS SAY MR CLARK RECEIVED A 1992 PAY PACKAGE OF MORE THAN 36 MILLION IN CASH AND LONGTERM INCENTIVE PAYOUTS THE 49YEAROLD MR CLARK HAD BEEN SHEARSON'S CHAIRMAN FOR NEARLY THREE YEARS IN JANUARY HE WAS DEMOTED TO SHEARSON VICE CHAIRMAN BY JAMES ROBINSON III THENCHAIRMAN OF AMERICAN EXPRESS AS REPORTED MR ROBINSON WHO WAS PRESSURED TO RESIGN HIS POST IN LATE JANUARY ALSO RECEIVED A BAREBONES SEVERANCE PACKAGE UNDER MR CLARK'S WATCH SHEARSON CONTINUED TO BE HOBBLED BY MISCUES MANY OF THEM LEFT OVER FROM ITS ACTIVITIES IN THE 1980S THIS LED TO RED INK IN TWO OF THE PAST THREE YEARS INCLUDING A LOSS OF 966 MILLION IN 1990 THE BIGGEST DEFICIT EVER FOR A US BROKERAGE FIRM MR CLARK CURRENTLY IS BEING COURTED BY SEVERAL WALL STREET INVESTMENT BANKS COLLEAGUES SAY AND HE IS EXPECTED TO BE HIRED WITHIN THE NEXT FEW WEEKS HIS RESIGNATION IS UNRELATED TO THE RECENT ANNOUNCEMENT THAT AMERICAN EXPRESS AGREED TO SELL ITS SHEARSON BROKERAGE OPERATIONS TO PRIMERICA CORP FOR 115 BILLION 9303230110 930323 THERMAL INDUSTRIES ENDS BUYOUT PITTSBURGH THERMAL INDUSTRIES INC SAID IT TERMINATED A NONBINDING LETTER OF INTENT TO BE ACQUIRED BY JELDWEN INC THE MAKER AND DISTRIBUTOR OF VINYLFRAMED MADETOORDER WINDOWS SAID IT BACKED OUT OF THE BUYOUT BECAUSE IT BECAME UNCOMFORTABLE WITH CERTAIN DETAILS OF THE TRANSACTION AN OFFICIAL DECLINED TO ELABORATE UNDER THE LETTER OF INTENT THERMAL CAN'T SOLICIT OR ENCOURAGE OFFERS FOR THE COMPANY FROM OTHER PARTIES UNTIL DEC 31 9303230109 930323 DURAKON INDUSTRIES MEXICAN PACT LAPEER MICH DURAKON INDUSTRIES INC SAID IT IS FORMING A JOINT CORPORATION WITH CONSORCIO LARMO A MEXICAN AUTO PARTS CONCERN TO BUILD PICKUP TRUCK BEDLINERS IN MEXICO FOR THAT MARKET THE NEW MEXICAN CORPORATION DURAKON MEXICANA SA DE CV WILL BE JOINTLY OWNED BY DURAKON AS THE MAJORITY STOCKHOLDER AND CONSORCIO LARMO PRODUCTION IS EXPECTED TO BEGIN SOMETIME THIS SPRING DURAKON BUILDS PICKUP TRUCK BEDLINERS CAR CARRIERS AND WHEELLIFT TOWING VEHICLES 9303230108 930323 TRACOR UNIT WINS US CONTRACT AUSTIN TEXAS TRACOR INC SAID ITS TRACOR FLIGHT SYSTEMS INC UNIT WON FIVE SEPARATE CONTRACTS WITH A TOTAL VALUE OF 12 MILLION TO PROVIDE GROUNDBASED AND AIRBORNE VEHICLES AND EQUIPMENT TO THE US DEFENSE DEPARTMENT THE DEFENSE COMPANY SAID IT COULDN'T BE MORE SPECIFIC BECAUSE SOME OF THE CONTRACTS ARE CLASSIFIED THE CONTRACTS INCLUDE OPTIONS FOR AN ADDITIONAL 11 MILLION IN ORDERS TRACOR SAID 9303230107 930323 EPA EXTENDS OLIVE BRANCHES TO AUTO MAKERS IN VISIT TO BIG THREE FIRMS OFFICIAL VOWS TO WEIGH CHANGING FUEL RULES BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE CLINTON ADMINISTRATION'S TOP ENVIRONMENTAL OFFICIAL OFFERED OLIVE BRANCHES TO THE BIG THREE US AUTO MAKERS INCLUDING A PROMISE TO CONSIDER ALTERING FUEL ECONOMY REGULATIONS THAT DETROIT HAS FOUGHT FOR YEARS ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL M BROWNER'S VISIT TO THE MOTOR CITY WAS THE LATEST SIGN OF THE CLINTON ADMINISTRATION'S EAGERNESS TO REASSURE INDUSTRY LEADERS THAT IT IS REALLY PROBUSINESS AT HEART NOTWITHSTANDING VICE PRESIDENT ALBERT GORE'S BESTSELLING GREEN MANIFESTO DURING A BRIEF NEWS CONFERENCE AFTER HER MEETING WITH THE CHIEF EXECUTIVE OFFICERS OF GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP MS BROWNER A PROTEGE OF MR GORE'S OFFERED HER HOSTS REASSURANCE THAT SHE WANTS TO COOPERATE WITH INDUSTRY AND IS OPEN TO MAKING FEDERAL REGULATIONS MORE BUSINESSFRIENDLY SPECIFICALLY MS BROWNER SAID SHE WOULD CONSIDER ALTERNATIVES TO THE CURRENT GOVERNMENT SYSTEM FOR REGULATING FUEL ECONOMY BY REQUIRING AUTO MAKERS TO HIT A MINIMUM CORPORATE AVERAGE FUEL ECONOMY OR CAFE TARGET INDUSTRY EXECUTIVES SAY PROPOSALS TO BOOST THE CURRENT 275 MILES A GALLON STANDARD WOULD FORCE US MANUFACTURERS TO SELL SMALL LOWPROFIT CARS AT A TIME WHEN CHEAP GASOLINE MAKES HIGHERPROFIT TRUCKS AND BIG CARS MORE ATTRACTIVE TO CONSUMERS DURING THE 1992 CAMPAIGN PRESIDENT CLINTON ADVOCATED RAISING CAFE STANDARDS TO 40 MILES A GALLON BY THE YEAR 2000 AND 45 MPG BY 2015 BUT HE WAS VAGUE ABOUT HOW THESE GOALS WOULD BE MET AND HE EMPHASIZED COOPERATION WITH THE AUTO INDUSTRY IN ACHIEVING THEM SINCE THE ELECTION RAISING CAFE STANDARDS HASN'T BEEN A PRIORITY FOR THE CLINTON ADMINISTRATION THERE ARE MANY ANSWERS FOR ACHIEVING THE CONSERVATION MANY BELIEVE WILL BE NECESSARY MS BROWNER SAID WITH GM PRESIDENT JOHN F SMITH JR FORD CHAIRMAN HAROLD A POLING AND CHRYSLER CHAIRMAN ROBERT EATON LOOKING ON CAFE ISN'T THE ONLY ONE REGULATORY PLANS THAT USE MARKET FORCES TO PROMOTE ENVIRONMENTAL ENDS SUCH AS REDUCED GASOLINE CONSUMPTION CAN ACHIEVE ENVIRONMENTAL ENDS IN A MORE EXPEDITIOUS MANNER SHE ADDED ONE SUCH APPROACH THAT DETROIT SUPPORTS IS RAISING GASOLINE TAXES BUT THE CLINTON ADMINISTRATION HAS REJECTED A GASOLINEONLY TAX PROPOSING INSTEAD A BROADBASED ENERGY TAX THAT ISN'T EXPECTED TO RAISE GASOLINE PRICES SUFFICIENTLY TO HAVE A MAJOR IMPACT ON AUTOMOBILE USE IN LIGHT OF MS BROWNER'S STRONGLY PROENVIRONMENT TRACK RECORD INDUSTRY OFFICIALS SAID THEY WERE PLEASANTLY SURPRISED BY THE ADMINISTRATOR'S CONCILIATORY TONE HER ATTITUDE WAS VERY POSITIVE SAID ONE INDUSTRY SPOKESMAN WE'LL GET A HEARING BIG THREE OFFICIALS GOT A HEARING ON SEVERAL SPECIFIC ISSUES IN PRIVATE MEETINGS THEY URGED MS BROWNER TO BLOCK ATTEMPTS BY SOME EASTERN STATES TO ADOPT CERTAIN ASPECTS OF CALIFORNIA'S TOUGH CLEAN AIR LAW THAT COULD FORCE AUTO MAKERS TO BUILD THREE KINDS OF CARS IN THE LATE 1990S AND OVER LUNCH THE CHIEF EXECUTIVES AND MS BROWNER DISCUSSED THE POSSIBILITY OF ALLOWING BUSINESSES TO GET POLLUTION CREDITS BY PURCHASING AND JUNKING OLD HIGHPOLLUTING CARS IN GENERAL MS BROWNER SAID SHE WANTS TO BEGIN A DIALOGUE OF COMMUNICATION AND COOPERATION WITH MAJOR INDUSTRIES HER AGENCY REGULATES YESTERDAY'S TOUR OF BIG THREE FACILITIES INCLUDING CHRYSLER'S BIG DETROIT JEEP FACTORY WAS THE FIRST OF WHAT THE ADMINISTRATOR INDICATED WOULD BE A SERIES OF GETACQUAINTED VISITS MS BROWNER'S REMARKS DREW SMILES OF APPROVAL FROM THE BIG THREE CHIEFS WHO HAD MET WITH HER OVER LUNCH FOR A GENERAL DISCUSSION OF INDUSTRY CONCERNS IT'S TIME TO FORGE A NEW COOPERATIVE RELATIONSHIP SAID MR SMITH THE TRADITIONAL ADVERSARIAL APPROACH TO REGULATIONS HAS REDUCED OUR EFFORTS TO COMPETE EFFECTIVELY 9303230105 930323 MARKETING & MEDIA HACHETTE AND NBC TO JOINTLY PUBLISH MAGAZINE FOR TEENS NEW YORK HACHETTE MAGAZINES INC AND NBCTV NETWORK SAID THEY WILL FORM A JOINT VENTURE TO PUBLISH A NATIONAL MAGAZINE FOR TEENS IN WHAT HACHETTE THE US MAGAZINE UNIT OF PARISBASED HACHETTE SA BILLED AS AN UNUSUAL JOINT VENTURE BETWEEN AN ENTERTAINMENT MEDIA COMPANY AND A MAGAZINE PUBLISHER THE ASYETUNNAMED MAGAZINE IS SCHEDULED TO APPEAR IN SEPTEMBER THE QUARTERLY PUBLICATION WILL INITIALLY HAVE A NEWSSTANDONLY CIRCULATION OF 500000 AND A COVER PRICE OF 195 THE MAGAZINE IS TARGETING A NEW GENERATION OF SOPHISTICATED TEENS WHO HAVE A STRONG INTEREST IN MULTICULTURAL SOUNDS STYLES AND IDEAS A PRESS RELEASE SAID NBC A UNIT OF GENERAL ELECTRIC CO SAID THAT ALONG WITH ITS SUCCESSFUL TEEN PROGRAMMING IT HAS A COMMITMENT TO A TEEN AUDIENCE NBC EXECUTIVES SAID THEY WERE WORKING ON THE POSSIBILITY OF SELLING AD SPACE IN THE MAGAZINE AND AD TIME ON THE NETWORK IN PACKAGES THE MAGAZINE WILL BE PRODUCED BY HACHETTE'S CUSTOM PUBLISHING GROUP WHICH HAS RECENTLY ANNOUNCED AN ARRAY OF NEW MAGAZINES TO BE CREATED FOR SPECIAL ADVERTISERS NBC IS EXPECTED TO HELP ADVANCE THE MAGAZINE THROUGH ONAIR PROMOTIONS PRINT ADS CONTESTS AND SWEEPSTAKES AND A MAJOR PUBLICITY CAMPAIGN IN CONJUNCTION WITH FALL PREMIERES OF TEEN PROGRAMS THE NEW MAGAZINE WILL ENTER A HIGHLY COMPETITIVE MARKET WITH A NUMBER OF SUCCESSFUL NEW AND ESTABLISHED TITLES INCLUDING LANG COMMUNICATIONS' SASSY FOR GIRLS AND DIRT FOR BOYS MAGAZINES AND KIII COMMUNICATIONS CORP'S SEVENTEEN MAGAZINE 9303230104 930323 JUDGE SENTENCES FEUER OF QUANTUM PHARMICS IN DRUG CONSPIRACY BALTIMORE A FEDERAL JUDGE SENTENCED QUANTUM PHARMICS LTD'S COFOUNDER SCOTT M FEUER TO EIGHT MONTHS IN PRISON IN CONNECTION WITH THE COMPANY'S SALE OF AN UNAPPROVED GENERIC DRUG THE US ATTORNEY'S OFFICE IN MARYLAND SAID MR FEUER WAS CONVICTED FOR CONSPIRACY TO MANUFACTURE AND DISTRIBUTE THE ANTIINFLAMMATORY DRUG CALLED FENOPROPHEN MR FEUER PLEADED GUILTY TO THE CHARGE IN JANUARY MR FEUER WAS ONE OF FOUR PRINCIPALS WHO FOUNDED THE AMITYVILLE NY COMPANY IN 1983 ANOTHER COFOUNDER JINSHUNG CHANG WHO WAS ALSO CHARGED IN THE FIVECOUNT INDICTMENT REMAINS A FUGITIVE THE US ATTORNEY'S OFFICE SAID MR FEUER ADMITTED TO ADDING AN UNAPPROVED PROCESS AND AN UNAPPROVED AMOUNT OF AN INGREDIENT TO THE FIRM'S GOVERNMENTAPPROVED FORMULA FOR THE GENERICEQUIVALENT DRUG AS PART OF A PLEA AGREEMENT MR FEURER WILL COOPERATE WITH THE GOVERNMENT'S CONTINUING INVESTIGATION THE US ATTORNEY'S OFFICE SAID JUDGE JOHN R HARGROVE ORDERED MR FEUER OF ENGLEWOOD NJ TO SPEND FOUR MONTHS IN A FEDERAL PRISON AND THE REMAINING FOUR MONTHS IN HOME DETENTION THE JUDGE DIDN'T IMPOSE A FINE 9303230103 930323 PEPPERAND SALT AND DO YOUR CROSSWORD PUZZLE THE PAST YEAR WAS A BUMMER 9303230102 930323 LETTERS TO THE EDITOR MEDICINE'S GOLDEN AGE THREATENED BY ATTACKS JONATHAN KWITNY'S DON'T KILL THE SYSTEM THAT SAVED MY LIFE EDITORIAL PAGE MARCH 3 IS A POWERFUL AND TIMELY TESTAMENT THAT SPEAKS FOR MILLIONS IN FACT THE SYSTEM OF WHICH HE SPEAKS IS A SYSTEM OF MEDICAL CARE THAT ACCOUNTS FOR WHAT IS PROPERLY CALLED THE GOLDEN AGE OF MEDICINE THE GOLDEN AGE IS UNIQUELY THE PRODUCT OF A VAST AMOUNT OF CREATIVE RESEARCH OF RECENT DECADES AND IT IS THAT RESEARCH THAT HAS GIVEN PATIENTS SUCH AS MR KWITNY THE RICH OPTIONS THAT MADE POSSIBLE HIS PERSONAL CHOICES OF OPTIMUM MEDICAL STRATEGIES ALAS THAT SYSTEM IS NOW THREATENED NOT ONLY AS MR KWITNY SEES IT BY THE PROSPECT OF MANAGED CARE IT IS ALSO THREATENED BY ADMINISTRATION HEALTH PRIORITIES THAT PUT IMMUNIZATION AGAINST MEASLES WHOOPING COUGH ETC AHEAD OF ATTACKS ON THE LEADING KILLERS SUCH AS HEART DISEASE AND CANCER THE SYSTEM IS ALSO THREATENED BY ADMINISTRATION SCAPEGOATING OF THE PHARMACEUTICAL AND OTHER HEALTH INDUSTRIES THAT HAVE BEEN SUCH BRILLIANT CONTRIBUTORS TO THE WAR ON DISEASE AND TO THE GOLDEN AGE OF MEDICINE CONTINUATION OF THOSE ATTACKS WILL CUT INNOVATIVE HEALTH CARE COMPANIES OUT OF THE CAPITAL MARKETS AND EVENTUALLY PUT AN END TO THE GOLDEN AGE 9303230101 930323 BUSINESS WORLD THE COLOR OF MONEY IS EVER SO CHIC BY TIM W FERGUSON I WENT TO THIS MONTH'S ECO EXPO IN LOS ANGELES TO SEE THE ENVIRONMENTAL FAITHFUL MELT OVER THOSE WACKY ICECREAM ENTREPRENEURS BEN & JERRY WHO WERE SPEAKING BUT IT ALSO WAS AN OPPORTUNITY TO TAKE STOCK OF THE GREEN INDUSTRY BY SCANNING THE TRADE SHOW FOR KEEPERS AMID THE KITSCH AND IT WAS AN APPROPRIATE TIME TO ASK WHETHER THIS FIELD DEMANDS AN ALTERED STATE OF COST CONSCIOUSNESS GREEN IS PRICEY TO SOME EXTENT THE RECENT RECESSION IMPOSED A VALUE TEST AND THE GROWTH IN NEW PRODUCTS ADVERTISED AS FRIENDS OF THE EARTH SLACKENED A BIT YET THE SUSTAINED STRENGTH OF THIS MARKET AND THE DEGREE TO WHICH CORPORATE GIANTS SEEK TO SQUEEZE INTO IT MEANS THERE'S NO DISCARDING IT AS A GENERATIONAL FAD THE BIG COMPONENTS OF GREEN MERCHANDISING HAVE BEEN BAGS PAPER AND CLEANSERS IN KEEPING WITH THE HYPED LANDFILL CRISIS WATERQUALITY WORRIES AND ALGAE ANXIETY NOW THE STYLISH SIDE OF THE BUSINESS IS INCREASINGLY EVIDENT AS COULD BE SEEN AMONG ECO EXPO'S 30000 ATTENDEES INDEED SKIPPING THE OBLIGATORY GEODESICDOME DISPLAY I FOUND LOTS OF LOTIONS AND GELS FOR THE BODY AND THINGS TO WEAR ON IT PRIVATELY HELD AVEDA CORP LED THE COSMETICS PARADE THE MINNESOTABASED SENSATION IS ALL NATURAL AND KIND TO ANIMALS IT COMPETES WITH THE BODY SHOP AND SEBASTIAN INTERNATIONAL IN A DERBY TO DONATE THE MOST TO CORRECT CAUSES THIS HIGHBROW HUMANITY HAS GIVEN NEW MEANING TO THE TERM POLITICAL SALON THE NEWSLETTER GREEN MARKET ALERT LAST YEAR SOUGHT TO EXPLAIN WHY SO MANY ARE WILLING TO PART WITH A PRETTY PERCENTAGE OF THEIR DISPOSABLE INCOME TO SUCH BODY CARE SPECIALISTS THESE VENDORS APPEAL MOST VISIBLY TO THE EMERGING GREEN' MYTH OF SELF A MYTH THAT TAPS INTO PEOPLES' DESIRE TO BE NATURAL' TO LIVE SIMPLY AND IN TOUCH WITH THE EARTH MEANWHILE ANOTHER SELFIMAGE HAS TO DO WITH QUITE DIFFERENT QUALITIES WITH ELEGANCE WITH EXCLUSIVITY WITH THE DESIRE TO FEEL ENTITLED TO QUALITY PRODUCTS AND SERVICE BECAUSE OF ONE'S UNIQUE ESTHETIC SENSIBILITY IN A NEARBY BOOTH EVEN MY INERT AESTHETIC SENSIBILITY COULD APPRECIATE THE LOOK AND FEEL OF O WEAR ORGANIC COTTONS BUT AGAIN THERE WAS NOTHING SARTORIALLY SEARS ABOUT THE PRICE INSTEAD IT WAS NORDSTROM THAT WAS STATIONED A FEW YARDS AWAY I SAW SOME CLOTHES AND ACCESSORIES MADE FROM SALVAGE OLD SEAT BELTS INNER TUBES AND HUBCAPS OLD PACKAGE LABELS AND LICENSE PLATES WERE AFFIXED AH HERE WAS SOME GLOBAL THINKING AND LOCAL ACTING ON THE WORKING MAN'S LEVEL BUT I LEARNED THAT RECYCLE REVOLUTION AS THE COUPLE BEHIND IT HAVE DUBBED THIS LINE IS NOT ABOUT RETURNING DETRITUS TO THE MASSES WHENCE IT CAME NOT VERY MODERATELY PRICED I MUSED IT'S FASHION PRICED SAID SUZANNE DEPUTY ONE HALF OF THE REVOLUTION AND IT GOES OUT THE DOOR AT FRED SEGAL'S IN LA BARNEY'S IN NEW YORK AND BOUTIQUES IN ONCERICH JAPAN I WAS GETTING DIZZY FROM THE ALTITUDE WHEN A BIGGIRL GROUP CALLED THE EARTHTONES BELTED OUT COMPOST NOW AND RETURNED ME TO GROUND ZERO SOON I WAS LOOKING AT THE ANDELA PULVERIZER WHICH GRINDS EMPTY BOTTLES DOWN TO COARSE SAND THE REGIONAL DISTRIBUTOR IS IN MAUI BUT I ASKED HIS STANDIN WHAT ONE COULD DO WITH THIS SAND SELL IT TO A GOLF COURSE HE SUGGESTED AS AT MOST EXHIBITIONS MUCH OF WHAT'S FOR SALE HAS THE AIR OF A LATENIGHT COMMERCIAL EVEN AT THAT HOWEVER IT WASN'T GOING TO BE CHEAP TO BE GREEN THE NADA CHAIR IS A STRAP THAT ANCHORS YOUR BACK TO YOUR KNEES SO YOU SIT BOLT UPRIGHT THE 50 PRICE COVERS ABOUT 1 IN MATERIALS AND 49 IN INGENIOUSNESS BUT YOU SAVE ON OFFICE FURNITURE UHOH HERE'S A GIZMO TO COUNTERACT ELECTROMAGNETIC RADIATION THE FRIGHT ASSOCIATED WITH POWER LINES APPLIANCES AND BROADCAST TOWERS CLARUS SYSTEMS OF NEWPORT BEACH IS SELLING A FAUX CLOCK RADIO THAT WILL ENTRAIN THE RANDOM WAVES COMING AT YOU AND PUT YOUR LIFE IN ORDER 100 AND UP TO PROVE THE PHYSICS YOU HAVE TO GO TO A SUPERCOLLIDER SAID THE PRESIDENT WHO TRAINED IN ARCHITECTURE A CALL TO CLARUS'S CHIEF SCIENTIST WILLIAM TILLER OF STANFORD WAS NOT RETURNED LEGITIMATE OR NOT THE ENVIRONMENTAL PITCH FINDS A WILLING WALLET SIMMONS MARKET RESEARCH FINDS THAT 28 OF AMERICANS NOW FIT INTO THE CATEGORY IT CALLS PREMIUM GREEN ABOUT THE NUMBER THAT TOLD A SEPARATE SURVEY BY CAMBRIDGE REPORTS RESEARCH THEY'D BE WILLING TO SPEND AN ADDITIONAL 40 OR MORE A MONTH FOR ECOWORTHY GOODS AND SERVICES AN ADDITIONAL 25 ARE RED WHITE AND GREEN SAYS SIMMONS FIELDANDSTREAM BUFFS FROM THE HEARTLAND BASICALLY THEY TOO ARE SUCKERS FOR A GOOD RECYCLING DRIVE PRICE DIFFERENTIALS NEVERTHELESS REMAIN A SIGNIFICANT HURDLE AND DISCOURAGEMENT FOR THE LESS GLAMOROUS ECONPRENEURS SAYS JEFF HOLLENDER PRESIDENT OF SEVENTH GENERATION A VERMONTBASED SELLER OF SEVERAL LINES ACCORDING TO MR HOLLENDER WHO MAY SHOW AT THE ECO EXPO IN BOSTON LATER THIS YEAR HIGHER MATERIAL COSTS OR SHORTER PRODUCTION RUNS AREN'T ALWAYS TO BLAME UNBLEACHED PAPER SHOULD ACTUALLY COST LESS SOMETIMES RECYCLED GOODS SUFFER HE COMPLAINS BECAUSE VIRGINRESOURCE INDUSTRIES GET AN EXTRACTION SUBSIDY WE'RE BEGINNING TO SEE THE OPPOSITE OCCUR BUT OFTEN IT'S JUST MORE EXPENSIVE TO DO IT NATURE'S WAY THE VEGETABLE DYE SEVENTH GENERATION USES ON ITS CLOTHING RUNS AT LEAST 10 MORE THAN THE STANDARD TOXIC VARIETY SOME OBSTACLES ARE MANMADE IN CALIFORNIA WOULDBE GROWERS OF COLORED COTTON NO DYEING NEEDED ARE BLOCKED BY A STATE LAW THAT ENFORCES PURITY STANDARDS SET BY THE WHITE ESTABLISHMENT BEN & JERRY COHEN'S KEYNOTE TALK TO ECO EXPO WAS ALTERNATELY INSPIRATIONAL AND GASEOUS AND INCLUDED A PROLONGED PITCH FOR A WASHINGTONBASED LOBBY CALLED BUSINESSES FOR SOCIAL RESPONSIBILITY THAT IS FUNDED BY HIS COMPANY AVEDA AND SEVERAL OTHER CORPORATE CREATIONS OF THE '60S CROWD ESPRIT REEBOK TIMBERLAND AFTERWARD I PURSUED THE PRICING MATTER WITH HIM GIVEN THAT HE AND HIS LOBBY MAKE A LOT OF NOISE ABOUT SHIFTING RESOURCES TO THE POOR HE REMINDED THIS AUDIENCE THAT IN THE NATION'S INNER CITIES THE BIGGEST ENVIRONMENTAL CONCERN IS THAT IT IS RAINING BULLETS ISN'T IT A PARADOX THAT NEARLY ALL OF THE BUSINESSES FOR SOCIAL RESPONSIBILITY PEDDLE UPSCALE MR COHEN WAS STUMPED FOR A SECOND BUT THEN REPLIED THAT NEW COMPANIES NEED A NICHE AND IT IS EASIER TO FIND ONE SELLING TO THE WELLHEELED WELL MAYBE SO MAYBE THE DESIRE TO BE A LITTLE HIPPER AND MORE DISCERNING THAN THE NEXT BLOKE AND THE DISTASTE FOR THE MULTITUDES REFLECTED IN SOME OF ECO EXPO'S OTHER TALKS PEOPLE RUIN THE ENVIRONMENT POPULATION MOMENTUM WHY ISN'T EVERYONE AS SCARED AS WE ARE AREN'T WHAT DRIVES GREEN MARKETING SURELY NO ONE GETS PRETENTIOUS ABOUT AN ICECREAM CONE EVEN ONE WITH AMAZON RAINFOREST CRUNCH 9303230100 930323 CIRCLE K SAYS IT WON BACKING OF CREDITORS FOR ITS REORGANIZATION PHOENIX CIRCLE K CORP SAID PRELIMINARY RESULTS INDICATE IT HAS WON THE REQUIRED CREDITOR SUPPORT FOR ITS REORGANIZATION PLAN THE CONVENIENCESTORE OPERATOR SAID THE NECESSARY MAJORITIES OF THREE OUT OF FOUR CREDITOR GROUPS HOLDING AT LEAST 670 MILLION OF SOME 12 BILLION IN CLAIMS VOTED FOR THE COMPANY PLAN RATHER THAN A COMPETING PLAN PROPOSED BY A BONDHOLDERS' GROUP THE RESULTS ARE SUBJECT TO ADJUSTMENT AND TO BANKRUPTCY COURT APPROVAL BUT BART BROWN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HE BELIEVES THE END OF CIRCLE K'S BANKRUPTCYLAW PROCEEDINGS ARE IN SIGHT THE COMPANY PLAN CALLS FOR CIRCLE K TO BE ACQUIRED BY CK ACQUISITION CORP A UNIT OF INVESTCORP INTERNATIONAL INC A BAHRAINBASED HOLDING COMPANY INVESTCORP WOULD PAY 3995 MILLION TO CREDITORS AND PROVIDE THE REORGANIZED COMPANY WITH A 50 MILLION LINE OF CREDIT THE BONDHOLDERS' GROUP WHOSE MEMBERS WOULD RECEIVE NOTHING UNDER THE COMPANY PLAN FOR THEIR 525 MILLION IN CLAIMS SAID IT WILL CHALLENGE THE PLAN WHEN CONFIRMATION HEARINGS START APRIL 7 MEANWHILE A HEARING IS SET FOR THE END OF THIS MONTH TO DETERMINE THE EXTENT OF THE COMPANY'S LIABILITY FOR GROUNDWATER CONTAMINATION FROM UNDERGROUND GASOLINE STORAGE TANKS AT MANY OF THE COMPANY'S STORES IF THAT LIABILITY EXCEEDS 45 MILLION INVESTCORP MAY LEGALLY WITHDRAW ITS BUYOUT OFFER 9303230099 930323 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED MARCH 19 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER NORTHERN INDIANA PUBLIC SERVICE CO WILL REDEEM ON APRIL 5 1993 ITS 89 FIRST MORTGAGE BONDS SERIES V DUE APRIL 1 2004 HARRIS TRUST & SAVINGS BANK CHICAGO IS TRUSTEE PROVINCE OF QUEBEC WILL REDEEM ON APRIL 7 1993 125000000 PRINCIPAL AMOUNT OF ITS 79 SINKING FUND DEBENTURES DUE APRIL 1 2003 BANK OF MONTREAL TRUST CO NEW YORK IS PAYING AGENT SANTA ROSA COUNTY FLA WILL REDEEM ON MAY 1 1993 200000 PRINCIPAL AMOUNT OF ITS 6 3/8 POLLUTION CONTROL REVENUE BONDS DUE MAY 6 2006 SERIES A BANK SOUTH ATLANTA IS TRUSTEE BOSTON EDISON CO WILL REDEEM ON MARCH 29 1993 ITS 4 3/4 FIRST MORTGAGE BONDS SERIES I DUE 1995 STATE STREET BANK & TRUST CO BOSTON IS TRUSTEE 9303230098 930323 INTERNATIONAL NINJA TURTLES CONCERN SAYS NET PLUNGED 59 IN '92 TO 469 MILLION HONG KONG PLAYMATES INTERNATIONAL THE HONG KONG MARKETING AND DISTRIBUTION COMPANY BEHIND TEENAGE MUTANT NINJA TURTLES ACTION TOYS REPORTED THAT 1992 NET INCOME PLUNGED 59 TO 363 MILLION HONG KONG DOLLARS 469 MILLION ITS SECOND CONSECUTIVE ANNUAL EARNINGS DECLINE DUE TO A SLOWDOWN IN DEMAND FOR THE ACTION FIGURES SALES DECLINED 48 TO HK158 BILLION AND THE BOARD SLASHED THE FINAL DIVIDEND 48 TO 13 HONG KONG CENTS A SHARE HARBOUR RING INTERNATIONAL HOLDINGS LTD WHICH MANUFACTURES THE TURTLES ALSO WAS HURT BY THE SOFTENING DEMAND THE HONG KONG COMPANY SAID ITS PROFIT LAST YEAR FELL 36 TO HK1681 MILLION PLAYMATES SAID IT HAS EMBARKED ON A PLAN TO DIVERSIFY AWAY FROM DEPENDENCE ON THE PLASTIC AMPHIBIANS BRANCHING INTO OTHER TOYS AND EVEN OFFICE DEVELOPMENTS FOR INSTANCE A NEW LINE OF ACTION FIGURES AND ACCESSORIES DEVELOPED AROUND THE TELEVISION SERIES STAR TREK THE NEXT GENERATION BEGAN ARRIVING IN US STORES IN JANUARY 9303230097 930323 TECHNOLOGY & MEDICINE DELL AND COMPUADD CUT COMPUTER PRICES AUSTIN TEXAS IN THE LATEST SALVO IN THE PERSONALCOMPUTER PRICE WARS DELL COMPUTER CORP AND CROSSTOWN RIVAL COMPUADD COMPUTER CORP BOTH ANNOUNCED A SERIES OF PRICE CUTS THE CUTS WHICH RANGE AS HIGH AS 23 FOR COMPUADD AND AS MUCH AS 12 FOR DELL COME TWO WEEKS AFTER AN EXTENSIVE ROUND OF PRICESLASHING BY COMPAQ COMPUTER CORP AND INTERNATIONAL BUSINESS MACHINES CORP COMPUADD WHICH RECENTLY ANNOUNCED IT IS CLOSING ALL OF ITS RETAIL STORES TO CONCENTRATE ON ITS MAILORDER BUSINESS SAID IT IS LOWERING PRICES ACROSS ITS PRODUCT LINE THIS IS THE FIRST IN A SERIES OF AGGRESSIVE STEPS WE'VE PLANNED AS COMPUADD BEGINS THE TRANSITION TO A 100 DIRECTMARKETING COMPANY SAID BILL HAYDEN CHIEF EXECUTIVE OFFICER DELL BY CONTRAST LIMITED ITS CUTS TO SIX BASIC SYSTEMS SOLD THROUGH THE MAIL AND THROUGH RETAIL STORES UNDER THE DELL DIMENSION LABEL DELL SAID THE REDUCTIONS WHICH RANGE FROM 50 TO 300 DEPENDING ON HARDWARE CONFIGURATION AFFECT THREE MIDSIZE DESKTOPS AND THREE FLOORSTANDING SYSTEMS BASED ON VARIOUS VERSIONS OF INTEL CORP'S 486 MICROPROCESSOR 9303230096 930323 HUDSON'S BAY MAKES LASTMINUTE OFFER TO BUY WOODWARD'S TORONTO HUDSON'S BAY CO STEPPED IN AT THE LAST MINUTE WITH A TENTATIVE OFFER TO BUY WOODWARD'S LTD A RETAILER WITH 25 DEPARTMENT STORES IN WESTERN CANADA WOODWARD'S HAS BEEN OPERATING UNDER CANADIAN BANKRUPTCYCOURT PROTECTION SINCE DECEMBER IT HAD BEEN REQUIRED TO FILE A RESTRUCTURING PLAN IN A BRITISH COLUMBIA COURT YESTERDAY BUT ASKED FOR AN EXTENSION IN LIGHT OF THE NEW BID HUDSON'S BAY DIDN'T ESTIMATE THE VALUE OF THE TRANSACTION WOODWARD'S IS BASED IN VANCOUVER BRITISH COLUMBIA UNDER THE PROPOSED AGREEMENT WOODWARD'S SAID ITS SECURED CREDITORS WOULD GET FULL PAYMENT NOTE HOLDERS WOULD RECEIVE ABOUT 30 OF THEIR CLAIMS AND TRADE AND OTHER UNSECURED CREDITORS WOULD RECEIVE ABOUT 35 OF THEIR CLAIMS SHAREHOLDERS WOULD RECEIVE BETWEEN 35 AND 45 CANADIAN CENTS 28 TO 36 US CENTS PER SHARE SUBJECT TO ADJUSTMENTS THE COMPANIES MUST SIGN A DEFINITIVE MERGER AGREEMENT BY APRIL 7 THIS IS A PLAN STAKEHOLDERS WILL LOOK AT FAVORABLY SAID LORNE BRAITHWAITE PRESIDENT OF CAMBRIDGE SHOPPING CENTRES LTD WHICH HOLDS 215 OF WOODWARD'S SHARES CAMBRIDGE ALSO HOLDS ABOUT 354 MILLION CANADIAN DOLLARS US284 MILLION IN WOODWARD'S DEBT AND STANDS TO RECOUP A TOTAL OF ABOUT C30 MILLION UNDER THE PLAN CAMBRIDGE HAD PREVIOUSLY RECORDED ABOUT C66 MILLION IN PROVISIONS RELATED TO WOODWARD'S HUDSON'S BAY WOULD ALSO ACQUIRE C180 MILLION IN TAXLOSS CARRYFORWARDS WHICH MR BRAITHWAITE ESTIMATED WOULD HAVE A NET PRESENT VALUE OF ABOUT C50 MILLION ALL WOODWARD'S STORES WOULD BE CONVERTED TO HUDSON'S BAY STORES WHICH OPERATE UNDER THE NAMES THE BAY AND ZELLERS OR WOULD BE CLOSED BRAITHWAITE SAID EIGHT OF 10 STORES THAT CAMBRIDGE LEASES TO WOODWARD'S WOULD BE CONVERTED INTO HUDSON'S BAYOWNED STORES WOODWARD'S BOARD BELIEVES THE AGREEMENT IS BETTER THAN THE ALTERNATIVE WHERE WOODWARD'S WOULD TRY TO EMERGE FROM BANKRUPTCYCOURT PROTECTION AS A MUCH SMALLER RETAIL CHAIN PRESIDENT MARC CHOUINARD SAID HUDSON'S BAY WOULD BENEFIT BY INHERITING PRIME WOODWARD'S LOCATIONS IN WESTERN CANADA 9303230095 930323 INTERNATIONAL BAT OFFERS SHAREDIVIDEND PLAN THAT MAY CHEER ALL BUT THE TAX MAN BY SHOBA PURUSHOTHAMAN SPECIAL TO THE WALL STREET JOURNAL LONDON BA T INDUSTRIES PLC UNVEILED A SHAREHOLDER PAYOUT PLAN WHERE EVERYONE EXCEPT THE TAX MAN SEEMS TO BE A WINNER THE BRITISH FINANCIAL SERVICES AND TOBACCO GROUP IS OFFERING STOCKHOLDERS NEW ORDINARY SHARES VALUED AT 339 PENCE APIECE 505 CENTS INSTEAD OF THE FINAL 1992 DIVIDEND THE NEW SHARES OFFER INVESTORS 50 MORE THAN THE PROPOSED FINAL DIVIDEND OF 226 PENCE ANNOUNCED MARCH 10 IT'S INGENIOUS IT'S NOVEL AND IT'S EXCITING WITH POSSIBLE IMPLICATIONS FOR OTHER COMPANIES SAYS PAUL BEAUFRERE ANALYST AT JAMES CAPEL SECURITIES LTD FOR INVESTORS DETERMINED TO RECEIVE A CASH PAYOUT BAT'S BROKERS BARCLAYS DE ZOETE WEDD LTD ARE DANGLING A CARROT A CASH DIVIDEND OF 322 PENCE A SHARE IN EXCHANGE FOR EACH NEW SHARE INVESTORS PURCHASE UNDER THE CURRENT OFFER BZW IS OFFERING THIS SERVICE FOR FREE THERE ARE NO DEALINGS COSTS OR COMMISSIONS THROUGH THE DEAL BA T MANAGES TO ACHIEVE SEVERAL OBJECTIVES BY INCREASING THE NUMBER OF SHARES OUTSTANDING BY BETWEEN 35 AND 4 BA T SAYS IT CUTS ITS DEBTTOEQUITY RATIO BY ABOUT 13 TO 40 IF ALL SHAREHOLDERS OPT FOR THE NEW SHARE OFFER RATHER THAN THE DIVIDEND THE COMPANY SAVES THE 335 MILLION EARMARKED FOR THE DIVIDEND PAYOUT THUS FREEING UP CASH FOR ACQUISITIONS AND REINVESTMENT IT CLAIMS ARE PARTICULARLY ATTRACTIVE NOW GIVEN TENTATIVE SIGNS OF AN ECONOMIC RECOVERY IN THE UK IT'S NOT THAT WE NEED THE CASH BUT THIS JUST PLACES US IN A MUCH BETTER POSITION SAID MICHAEL PRIDEAUX A BA T SPOKESMAN ON THE TAX FRONT IF ALL INVESTORS TAKE UP THE SHARE OFFER THEY WILL SAVE BA T 98 MILLION IT WOULD HAVE TO PAY AS UK TAX ON DIVIDENDS KNOWN AS THE ADVANCED CORPORATION TAX OR ACT ALL TOGETHER BA T SAYS IT STANDS TO SAVE ABOUT 430 MILLION IF SHAREHOLDERS FULLY ACCEPT THE SHARE OFFER INSTEAD OF THE DIVIDEND PAYOUT MARKET ANALYSTS ARE GENERALLY CONFIDENT THAT THE OFFER WILL BE TAKEN UP IN FULL THE INLAND REVENUE SERVICE IS THE BIG LOSER IN ALL THIS AS IT WILL LOSE THE ACT REVENUE ACCORDING TO CALCULATIONS BY BAT THE IRS WILL PROBABLY LOSE ABOUT 45 MILLION IN TAX REVENUE AFTER ACCOUNTING FOR REFUNDS THAT WOULD HAVE BEEN MADE ON THE 98 MILLION ACT DUE FROM BAT THIS IS A CLEVER MOVE SAYS STEPHEN DIAS ANALYST AT GOLDMAN SACHS INTERNATIONAL INVESTORS APPEAR TO AGREE BOOSTING THE SHARES UP 18 PENCE BEFORE A RAPIDLY DECLINING UK STOCK MARKET ERODED THE GAINS TO TWO PENCE A SHARE ON THE DAY AT 994 PENCE ANDREW DARKE ANALYST AT WILLIAMS DE BROE LTD NOTES THAT THIS OFFER IS A REVERSAL OF WHAT THE COMPANY HAS BEEN DOING IN RECENT YEARS WHEN IT HAS BEEN BUYING UP ITS SHARES INDEED NOT ONLY IS THIS AN UNUSUAL OFFER FROM BAT BUT IT IS ALSO RARE FOR THE MARKET AS A WHOLE ACCORDING TO AMIR EILON HEAD OF CORPORATE FINANCE AT BZW THIS IS THE FIRST TIME ANY CORPORATION IN THE UK HAS OFFERED SUCH A SHARE ALTERNATIVE BZW HELPED STRUCTURE THE OFFER BA T HAS RECENTLY HAD ITS EARNINGS OUTLOOK UPGRADED BY ANALYSTS THE COMPANY ANNOUNCED NET INCOME OF 165 BILLION FOR 1992 UP 68 IN EARLY MARCH ITS TROUBLED UK INSURANCE SERVICES GROUP EAGLE STAR HAS STEMMED LOSSES AND TOGETHER WITH THE US INSURANCE OPERATIONS BOOSTED FINANCIAL SERVICES PROFIT TO 598 MILLION FROM 230 MILLION EARNINGS EXPECTATIONS FOR 1993 HAVE BEEN INCREASED LARGELY BECAUSE THE FINANCIAL SERVICES UNITS ARE EXPECTED TO SEE FURTHER SUBSTANTIAL IMPROVEMENT ALTHOUGH THERE ISN'T ANY IMMEDIATE IMPACT TO PERSHARE EARNINGS SOME ANALYSTS WARN THAT SHAREHOLDERS COULD PAY A PRICE IN 1994 AFTER CERTAIN RELATED ACCOUNTING ANOMALIES ARE ABSORBED IN 1993 MR BEAUFRERE OF JAMES CAPEL SAYS THAT ASSUMING THE OFFER INCREASES THE NUMBER OF BA T SHARES OUTSTANDING BY AN ADDITIONAL 3 1/2 INVESTORS COULD FACE A DILUTION OF ABOUT 1 1/2 IN 1994 HE ARGUES THAT GIVEN CURRENT INTEREST RATES BAT'S SAVINGS ON INTEREST FROM THIS OFFER WILL TRANSLATE INTO AN EXTRA 2 ON EARNINGS IN 1994 IT DOES APPEAR INVESTORS MAY HAVE TO PAY FOR THE SHORTTERM GAIN AT A LATER DATE HE SAYS 9303230094 930323 OIL MAN OFFERS TO BUY HOLDINGS IN PRUDENTIAL LIMITED PARTNERSHIPS NEW YORK A TULSA OKLA OIL MAN HAS JOINED THE FIGHT OVER PRUDENTIAL SECURITIES INC'S OIL AND GAS PARTNERSHIPS AND IS OFFERING CASH FOR INVESTORS' SOURED HOLDINGS GEORGE B KAISER LAUNCHED A TENDER OFFER FOR INVESTORS' HOLDINGS IN 31 OF THE 35 DISPUTED LIMITED PARTNERSHIPS THAT WERE SOLD BY PRUDENTIAL DURING THE 1980S MR KAISER IN AN ADVERTISEMENT IN YESTERDAY'S WALL STREET JOURNAL DIDN'T PLACE AN OVERALL VALUE ON HIS OFFERS HE WASN'T AVAILABLE FOR COMMENT BUT IN A STATEMENT YESTERDAY HIS OFFICE CHARACTERIZED THE TENDER OFFER AS A CASH ALTERNATIVE TO AN OFFER PRUDENTIAL HAS MADE TO SETTLE INVESTOR LAWSUITS OVER THE PARTNERSHIPS ABOUT 125000 INVESTORS ARE PARTICIPANTS IN A CLASSACTION LAWSUIT AGAINST PRUDENTIAL THEY HAVE BEEN OFFERED CASH PAYMENTS AND INTERESTS IN A REORGANIZED FORM OF THE PARTNERSHIPS EDWARD GROSSMANN A NEW YORK ATTORNEY WHO LEADS THE CLASS ACTION FOR THE PARTNERSHIP INVESTORS VALUED MR KAISER'S BID AT 174 MILLION HE WOULDN'T ESTIMATE THE TOTAL VALUE OF PRUDENTIAL'S SETTLEMENT OFFER BUT HE SAID THE CASH PORTION WOULD BE VALUED AT A TOTAL OF 100 MILLION TO HOLDERS OF ALL 35 PARTNERSHIPS PRUDENTIAL INITIALLY SOLD MORE THAN 14 BILLION IN OIL AND GAS PARTNERSHIP UNITS BUT AS THOSE INVESTMENTS HAVE TUMBLED IN VALUE AN UPROAR HAS EMERGED AMONG UNIT HOLDERS THEY CONTEND THE PARTNERSHIPS WERE MARKETED TO THEM AS SAFE INVESTMENTS SUITABLE FOR RETIREMENT FUNDS PRUDENTIAL SECURITIES IS A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA BASED IN NEWARK NJ 9303230093 930323 MONDAY'S MARKETS RUSSIA STRIFE HITS STOCKS IN EUROPE DJIA DECLINES 810 ON MUTED REACTION DOLLAR ENDS MIXED BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL TURMOIL IN RUSSIA THREW A SHADOW OVER THE FINANCIAL MARKETS RATTLING EUROPEAN STOCK MARKETS AND LEAVING US STOCK PRICES MODESTLY LOWER THE REACTION IN THE CURRENCY MARKETS WAS SUBDUED WITH THE DOLLAR ENDING MIXED US BOND PRICES ROSE THE DOW JONES INDUSTRIAL AVERAGE SANK 810 POINTS TO 346348 STANDARD & POOR'S 500STOCK INDEX FELL 130 TO 44888 AND THE NASDAQ COMPOSITE INDEX SLID 610 TO 67662 EUROPEAN STOCK MARKETS TUMBLED BUT ANALYSTS SAID THE SELLOFF WAS LINKED MORE TO ECONOMIC WORRIES AT HOME THAN POLITICAL STRIFE IN RUSSIA GERMANY TUMBLED 22 FRANCE AND BRITAIN BOTH FELL 12 AUSTRIA PLUNGED 41 ITALY 3 AND SWEDEN 24 WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX SLIPPED 021 TO 9953 ANALYSTS SAID THAT OVERALL THE FINANCIAL MARKETS REACTED WITH RESTRAINT TO THE SHOWDOWN BETWEEN PRESIDENT BORIS YELTSIN AND THE RUSSIAN PARLIAMENT STOCK INVESTORS THEY SAID USED THE OPPORTUNITY TO TAKE PROFITS AND COMMODITY PRICES REMAINED MOSTLY STABLE WHICH HELPED KEEP THE BOND MARKET FROM BECOMING JITTERY THE CURRENCY MARKETS' MUTED REACTION SUGGESTED THAT SO FAR TRADERS ARE BETTING RUSSIA WILL RESOLVE ITS LATEST CRISIS WITHOUT BEDLAM ANALYSTS SAID INVESTORS OFTEN FLEE TO THE DOLLAR AMID INTERNATIONAL STRIFE BECAUSE THE US CURRENCY IS CONSIDERED A HAVEN BUT YESTERDAY THE DOLLAR ROSE SLIGHTLY AGAINST THE MARK AND OTHER EUROPEAN CURRENCIES WHILE FALLING TO ANOTHER RECORD LOW AGAINST THE JAPANESE YEN THE FINANCIAL MARKETS ARE FIGURING THAT YELTSIN WILL GET THROUGH THIS THING SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ THEY'RE ASSUMING THE COUNTRY WILL GET THROUGH THIS PERIOD WITHOUT A SERIOUS DISRUPTION OF TRADE BETWEEN RUSSIA AND THE REST OF THE WORLD RUSSIA'S TURMOIL MAY HAVE SERVED AS A CATALYST FOR THE EUROPEAN STOCK MARKET DECLINES BUT ANDREW F JENNER DIRECTOR OF EUROPEAN EQUITIES AT COUNTY NATWEST INVESTMENT MANAGEMENT IN LONDON SAID IT WASN'T THE CHIEF EXPLANATION THE PRIME REASON IS THAT MARKETS HAVE MOVED AHEAD STRONGLY ON THE BACK OF FALLING BOND YIELDS HE SAID BUT EUROPEAN CENTRAL BANKS HAVEN'T EASED MONETARY POLICY ENOUGH TO SUPPORT FURTHER PRICE GAINS IN THE US STOCK PRICES WERE ALSO DUE FOR A MILD CORRECTION MR MCALINDEN SAID HE NOTED THE STOCK MARKET WAS STARTING TO WEAKEN WITH THE RECENT INFLATION NEWS AND SOFTENING IN THE BOND MARKET RUSSIA'S TURMOIL WAS JUST ONE MORE EXCUSE FOR THE MARKET TO CORRECT HE SAID BUT LONGBATTERED AEROSPACE AND DEFENSE STOCKS GOT A BOOST FROM THE UNCERTAINTY IN RUSSIA ANALYSTS SAID THAT JUST A WHIFF OF INSTABILITY IN THE FORMER SOVIET UNION WILL AID EFFORTS BY SOME LEGISLATORS TO CURTAIL THE CLINTON ADMINISTRATION'S PLAN FOR MASSIVE DEFENSE CUTBACKS IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2319 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1199 ISSUES FELL AND 691 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED LESS THAN AN EIGHTH OF A POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 680 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16380 MARKS AND 11563 YEN COMPARED WITH 16340 MARKS AND 11610 YEN FRIDAY 9303230092 930323 IRS OFFICE IN FLORIDA BEGINS A CRACKDOWN ON FREQUENT FLIERS MOVE INVOLVING ONE COMPANY FOCUSES ON SALE OF MILEAGE AWARDED BUSINESS TRAVELERS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AN INTERNAL REVENUE SERVICE OFFICE IN FLORIDA IS CRACKING DOWN ON BUSINESS TRAVELERS WHO RESELL THEIR FREQUENTFLIER MILES THE MOVE WOULD COST PASSENGERS WHO TRY TO PROFIT BY SELLING THE MILEAGE POINTS THEY RACK UP AT COMPANY EXPENSE THE CENTRAL FLORIDA IRS OFFICE APPARENTLY WORKING ON ITS OWN RECENTLY AUDITED ABOUT A HALF DOZEN EMPLOYEES AT A SMALL COMPUTER SOFTWARE FIRM IN MAITLAND FLA AND SLAPPED THEM WITH TAX BILLS FOR FREQUENTFLIER CERTIFICATES ISSUED IN 1990 AND 1991 ONE EMPLOYEE AT THE COMPANY MARKETING PROFILES INC SAID THE IRS TOLD HER SHE OWES 700 SHE VOWED TO FIGHT IT'S NOT CLEAR WHAT PROMPTED THE IRS AGENT TO AUDIT THE EMPLOYEES BUT TWO OF THEM SAID THAT MARKETING PROFILES EXCHANGED CASH FOR FREQUENT FLIER MILES EMPLOYEES WHO BOUGHT A BUSINESSTRIP TICKET WITH PERSONAL MILEAGE CREDITS WERE REIMBURSED 50 OF THE VALUE OF THE TICKET BY MARKETING PROFILES SELLING MILEAGE CREDITS IS PROHIBITED UNDER THE AIRLINES' FREQUENTFLIER PROGRAM RULES ALTHOUGH AIRLINES SUSPECT MANY COMPANIES ARE INVOLVED IN SUCH BUYBACKS MARKETING PROFILES DECLINED TO COMMENT ON THE AUDIT AN IRS SPOKESMAN IN WASHINGTON SAID THE AGENCY ISN'T INITIATING A SPECIAL EFFORT TO COLLECT TAXES ON THE RESALE OF FREQUENTFLIER AWARDS NATIONALLY AND THERE IS NO INDICATION THAT THE CRACKDOWN EXTENDS BEYOND THE ONE FLORIDA COMPANY BUT THE FLORIDA CASE HAS ALREADY CAUSED A STIR IN THE TRAVEL INDUSTRY WHICH FEARS IT COULD LEAD TO THE ENFORCEMENT OF EXISTING POWERS THAT ALLOW THE IRS TO TAX FREQUENTFLIER MILES ACCRUED AT COMPANY EXPENSE AND USED FOR PERSONAL TRIPS IT'S A SWORD OF DAMOCLES OVER THE MAJOR AIRLINES SAYS MARK PESTRONK A WASHINGTON LAWYER WHO SPECIALIZES IN TRAVEL THE LAW HAS BEEN CLEAR BUT NOBODY HAS BEEN OBEYING IT BECAUSE IT'S NEVER BEEN ENFORCED ADDED A SPOKESMAN FOR AMR CORP'S AMERICAN AIRLINES MAKING SOMETHING TAXABLE THAT HASN'T BEEN WOULD OBVIOUSLY BE DETRIMENTAL IT'S AN ONGOING CONCERN THE AIRLINES DISMISS THE NOTION THAT FREQUENTFLIER BENEFITS SHOULD BE TAXED FOR ONE THING ESTABLISHING THE VALUE OF A TICKET IS VIRTUALLY IMPOSSIBLE IN AN INDUSTRY WHERE FARES CHANGE SO OFTEN BUT AIRLINES ALSO INSTRUCT TRAVELERS TO VIEW PAID TICKETS LIKE CASH BECAUSE IF LOST THEY CAN BE USED BY OTHER PEOPLE OR BE REFUNDED AND LEGAL EXPERTS SAY THE IRS CAN RIGHTFULLY TAX FLIER BENEFITS THAT ARE PAID FOR BY A COMPANY AND USED FOR PERSONAL TRIPS I DON'T LIKE TAXING FLIER BENEFITS AS A TRAVELER BUT IT'S ENTIRELY LOGICAL SAID IVAN MICHAEL SCHAEFFER A LAWYER WHO RUNS A TRAVEL MANAGEMENT FIRM IN BETHESDA MD IT'S AS IF THE COMPANY GAVE THE EMPLOYEE AN EXTRA 400 TO 500 FOR TAKING A PERSONAL TRIP IN THE FLORIDA CASE THE IRS HAS PRESENTED EMPLOYEES OF MARKETING PROFILES WITH TAX BILLS RANGING FROM 200 TO 1300 ACCORDING TO THE MAY ISSUE OF FREQUENT FLYER A TRAVEL PUBLICATION THE IRS WON'T COMMENT ON SPECIFIC CASES THE EMPLOYEES SAID THE IRS AGENT OBTAINED THEIR RECORDS FROM SEVERAL CARRIERS INCLUDING DELTA AIR LINES DELTA SAID IT DOESN'T TURN OVER FREQUENTFLIER RECORDS UNLESS REQUIRED TO DO SO BY SUBPOENA BUT SAID IT COULDN'T COMMENT FURTHER IN THIS PARTICULAR CASE THE EMPLOYEE WHO WAS TOLD SHE OWED THE IRS 700 SAID SHE FLEW ABOUT THREE TIMES A MONTH ON BUSINESS IN THE TWO YEARS UNDER QUESTION THE IRS AGENT REACHED THE DOLLAR FIGURE BY MULTIPLYING HER MILES FLOWN ON PERSONAL TRIPS WITH FREQUENTFLIER TICKETS BY 15 CENTS THE AGENT USED 15 CENTS THE EMPLOYEE SAYS BECAUSE THAT'S THE GOING RATE AMONG COUPON BROKERS WHO ILLEGALLY BARTER FREQUENTFLIER POINTS HE SAID THAT'S THE FAIRMARKET VALUE I SAID THAT'S THE BLACKMARKET VALUE THE EMPLOYEE SAID RANDY PETERSEN EDITOR OF INSIDE FLYER A TRADE PUBLICATION ESTIMATES THAT FIVE MILLION FREQUENTFLYER TICKETS WILL BE ISSUED THIS YEAR HE FEARS THE IRS WILL SOME DAY TRY TO TAX THOSE BENEFITS ACROSS THE BOARD REGARDLESS OF WHETHER THEY ARE ACCUMULATED ON BUSINESS OR PERSONAL TRAVEL BUT MOST TRAVEL EXPERTS BELIEVE ENFORCING EVEN THE EXISTING TAX RULES ON FLIER BENEFITS IS VIRTUALLY IMPOSSIBLE BECAUSE IT'S DIFFICULT TO DETERMINE WHETHER MILEAGE CREDITS ARE ACCUMULATED ON BUSINESS OR PERSONAL TRIPS SCOTT R SCHMEDEL CONTRIBUTED TO THIS ARTICLE 9303230091 930323 YOUR MONEY MATTERS HOT STOCK FUNDS CAN COOL AFTER CLOSING BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL WITH HOT STOCK FUNDS CLOSING TO NEW INVESTORS LEFT AND RIGHT THE URGE TO TRY TO GET IN BEFORE THE DOOR IS SLAMMED IS UNDERSTANDABLE BUT INVESTING IN A STELLAR FUND THAT HAS ANNOUNCED PLANS TO STOP TAKING MONEY FROM NEW INVESTORS ISN'T THE AUTOMATIC HOME RUN MANY PEOPLE BELIEVE A LOOK AT THE PAST PERFORMANCE OF CLOSED FUNDS SHOWS THAT MANY HOT FUNDS STUMBLED AFTER CLOSING LAGGING BEHIND THE STOCK MARKET AS WELL AS THEIR STILLOPEN COMPETITORS EVEN SOME CLOSED FUNDS THAT REMAINED SUCCESSFUL HAVE HAD DIFFICULTY MANAGING THE HEAPS OF CASH THAT RUSHED IN BEFORE THE CLOSING BELL INSTEAD OF JOINING THE STAMPEDE INTO THE NEXT MUTUAL FUND THAT ANNOUNCES PLANS TO CLOSE INVESTORS MIGHT DO WELL TO CONSIDER SOME ALTERNATIVES FREQUENTLY THERE ARE GOOD LESSERKNOWN FUNDS WITH SIMILAR OBJECTIVES THAT REMAIN OPEN AND SOMETIMES THE MANAGER OF A CLOSING FUND RUNS ANOTHER FUND THAT REMAINS OPEN JUST LAST FRIDAY FOR INSTANCE STRONG COMMON STOCK FUND CLOSED TO NEW INVESTORS BUT ITS MANAGERS ALSO RUN STRONG OPPORTUNITY FUND WHICH INVESTS IN SLIGHTLY LARGER STOCKS ERIC RYBACK MANAGER OF THE RECENTLY CLOSED LINDNER DIVIDEND FUND COMANAGES LINDNER FUND WHICH SO FAR THIS YEAR IS OUTPERFORMING THE DIVIDEND FUND HE NOTES THE LATEST WAVE OF FUND CLOSINGS AT LEAST FIVE THIS YEAR WITH MORE ON THE WAY IS ONE OF THE BIGGEST EVER TO HIT THE MUTUALFUND INDUSTRY FUND COMPANIES ARE LOATH TO CLOSE A FUND BECAUSE MORE ASSETS MEAN HIGHER FEES FOR THE MANAGEMENT COMPANY BUT MANY FUND PORTFOLIO MANAGERS SAY THAT A FLOOD OF MONEY CAN OVERWHELM THEIR ABILITY TO FIND ENOUGH GOOD STOCKS THE SHAREHOLDERS' NEED FOR A MANAGEABLE FUND CONFLICTS WITH THE TENDENCY TO WANT TO MAXIMIZE ASSETS SAYS G KENNETH HEEBNER WHO RUNS TWO TOPPERFORMING STOCK FUNDS THAT ARE CLOSED TO NEW INVESTORS CGM CAPITAL DEVELOPMENT AND TNE GROWTH MANY OF THE FUNDS CLOSING CURRENTLY INVEST IN SMALL COMPANIES THEIR MANAGERS WORRY THAT IF THEY BUY TOO MUCH OF THESE SMALLCAP STOCKS THEY WILL BE UNABLE TO SELL THEM WITHOUT PUSHING DOWN THE STOCK PRICE SHARPLY AND HURTING THEIR FUND SHAREHOLDERS THE MORE MONEY YOU HAVE THE HARDER IT IS TO MANAGE IN THE SMALLCAP ARENA SAYS WILLIAM DUTTON PORTFOLIO MANAGER OF THE SKYLINE SPECIAL EQUITIES WHICH CLOSED TO NEW INVESTORS IN DECEMBER MR DUTTON ACTUALLY BECAME SO CONCERNED ABOUT THE LEVEL OF ASSETS HE MANAGES HE RUNS A 210 MILLION FUND AND 180 MILLION IN PRIVATE ACCOUNTS THAT YESTERDAY HE STOPPED ACCEPTING ADDITIONAL MONEY FROM EXISTING SHAREHOLDERS EXCEPT THOSE INVESTING IN RETIREMENT PLANS MOST FUNDS THAT CLOSE STILL ALLOW EXISTING SHAREHOLDERS TO CONTRIBUTE MORE MONEY SO MANY SMALLCOMPANY STOCK FUNDS HAVE CLOSED IN THE PAST YEAR THAT SOME FUND INDUSTRY WATCHERS SAY THERE IS A SHORTAGE OF WELLRUN FUNDS ESPECIALLY THOSE INVESTING IN VALUE STOCKS THAT APPEAR CHEAP COMPARED WITH THEIR EARNINGS OR ASSETS SO MANY OF THE GOOD FUNDS ARE CLOSING YOU HAVE TO GO WITH FUNDS WHOSE RECORDS ARE NOT AS COMPELLING OR TAKE A CHANCE ON NEWER FUNDS SAYS KENNETH GREGORY EDITOR OF NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER HE RECOMMENDS NEUBERGER & BERMAN GENESIS WHICH HAS A 4 1/2YEAR TRACK RECORD HE ALSO LIKES MUTUAL DISCOVERY WHICH BEGAN ONLY IN DECEMBER BUT IS RUN BY EXPERIENCED MONEY MANAGER MICHAEL PRICE MANAGER OF THE MUTUAL SERIES GROUP OF FUNDS MR PRICE SAYS HE PLANS TO CLOSE MUTUAL DISCOVERY WHICH HAS 130 MILLION IN ASSETS WHEN IT REACHES 300 MILLION IN ASSETS HE EXPECTS THAT TO HAPPEN IN THREE TO SIX MONTHS HE LIKENS THE FUND'S DILEMMA TO A RESTAURANT THAT CAN SERVE 40 REALLY TASTY DINNERS IF IT TRIED TO SERVE 120 DINNERS SOME OF THE PEAS MIGHT GET BURNED INVESTORS TEMPTED TO JUMP INTO A FUND JUST BECAUSE IT PLANS TO CLOSE SHOULD THINK TWICE IN A STUDY COMMISSIONED BY THE WALL STREET JOURNAL MORNINGSTAR MUTUAL FUNDS A CHICAGO FUND RESEARCH AND PUBLISHING FIRM LOOKED AT THE PERFORMANCE OF 18 FUNDS THAT HAVE REMAINED CLOSED FOR AT LEAST A YEAR WHILE 17 OF THE 18 FUNDS BEAT THE STANDARD & POOR'S 500STOCK INDEX BEFORE CLOSING ONLY HALF OF THEM HAVE DONE SO SINCE CLOSING EVEN THE BEST MANAGERS CAN TRIP UP AFTER CLOSING A FUND IN 1989 ABOUT 2 BILLION IN NEW CASH POURED INTO THREE FAMOUS VALUE FUNDS VANGUARD GROUP'S WINDSOR FUND RUN BY THE LEGENDARY JOHN NEFF AND MUTUAL QUALIFIED AND MUTUAL SHARES RUN BY MR PRICE ALL THREE FUNDS CLOSED IN MID1989 SINCE THEN ALL THREE HAVE TRAILED THE RETURNS ON THE S&P 500 MANY INVESTORS REDEEMED OUT OF THE FUNDS AFTER A COUPLE OF BAD YEARS MISSING A RESURGENCE IN 1992 WHEN THE FUNDS HANDILY BEAT THE S&P 500 MR PRICE SAYS THAT THE VALUE STYLE OF INVESTING THAT HAD SERVED HIS FUNDS WELL FELL OUT OF FAVOR SHORTLY AFTER THEY CLOSED IT WAS THE END OF '80S HE SAYS THE DRYING UP OF DEALS NO FUND AFTER ALL OUTPERFORMS THE MARKET YEARIN AND YEAROUT BECAUSE THE MARKET TENDS TO BE CYCLICAL INVARIABLY IT SEEMS THAT THE TIDE TURNS THE NEXT YEAR AFTER A FUND CLOSES AND IT RUNS INTO A BAD PATCH SAYS LORI LUCAS AN ANALYST AT MORNINGSTAR MOREOVER FUNDS GET HIT WITH A DOUBLE WHAMMY MS LUCAS SAYS BECAUSE IT'S HARD TO INVEST CAREFULLY THE SURGE OF CASH THAT FORCES THEM TO CLOSE IN THE FIRST PLACE THE MORNINGSTAR STUDY OF 18 CLOSED FUNDS FOUND THAT THE FOUR LARGEST FUNDS AT THE TIME OF THEIR CLOSING HAVE SINCE LAGGED BEHIND THE MARKET THEY INCLUDE THE NEFF AND PRICE FUNDS AND ALSO JANUS VENTURE RUN BY HIGHLY REGARDED MONEY MANAGER JAMES CRAIG SOME FUND MANAGERS WONDER IF GIVING ADVANCE NOTICE OF A FUND CLOSING MAKES MATTERS WORSE BY TRIGGERING A LASTMINUTE AVALANCHE OF MONEY I WOULD QUESTION WHY A FUND WOULD ANNOUNCE A CLOSING ONE OR TWO MONTHS IN ADVANCE SAYS MR RYBACK OF THE LINDNER FUNDS THE LONG LEADTIME ON SOME CLOSINGS SEEMS ALMOST A MARKETING PLOY TO ATTRACT MONEY EVEN SUCCESSFUL FUNDS SHOW SIGNS OF STRAIN FROM BIG CASH INFLOWS SEQUOIA FUND HAS HAD AN ANNUAL TOTAL RETURN OF 168 SINCE IT CLOSED AT THE END OF 1982 OUTPACING THE S&P 500 AND MOST OTHER MUTUAL FUNDS BUT IN THE 1980S 40 OF ITS ASSETS WERE IN CASH RATHER THAN STOCKS WITHOUT THAT CASH TO DRAG DOWN ITS PERFORMANCE AT A TIME OF RISING STOCK PRICES SEQUOIA'S RETURNS WOULD HAVE BEEN EVEN HIGHER DOES THE WAVE OF FUND CLOSINGS SUGGEST THAT THE SMALLCOMPANY STOCKS HAVE PEAKED MANY MANAGERS SAY THEY DON'T THINK SO OUR FEELING ABOUT THE MARKET DIDN'T PLAY A ROLE IN SHUTTING DOWN THE FUND SAYS RICHARD WEISS COMANAGER OF STRONG COMMON STOCK FUND BUT MR RYBACK SAYS THAT THE CLOSING OF LINDNER DIVIDEND WAS MOST DEFINITELY RELATED TO HIS CONCERNS ABOUT THE TYPES OF STOCKS IT INVESTS IN MR RYBACK HAS CLOSED AND OPENED THE LINDNER AND LINDNER DIVIDEND FUNDS ON SEVERAL OCCASIONS NOW HE SAYS HE WOULD REOPEN THE FUND IF WE GET A 10PLUS PERCENT CORRECTION IN THE STOCK MARKET OR IF LONGTERM INTEREST RATES ROSE BY TWO FULL PERCENTAGE POINTS IF YOU BUY THESE SMALLCOMPANY FUNDS NOW YOU'VE GOT TO DO IT WITH A COUPLEYEAR HORIZON SAYS GEORGE VANDERHEIDEN HEAD OF GROWTH STOCK FUNDS AT FIDELITY INVESTMENTS AND MANAGER OF THE TOPPERFORMING DESTINY I AND II FUNDS THE MARKET FOR SMALLCOMPANY STOCKS SMELLS LIKE WE'RE GETTING SET UP FOR SOMETHING UNPLEASANT HE SAYS LEAVE SOME POWDER DRY SO YOU CAN AVERAGE DOWN INSTEAD OF RUSHING TO JUMP IN BEFORE A POPULAR MUTUAL FUND CLOSES ITS DOOR TO NEW INVESTORS YOU MIGHT BE BETTER OFF FINDING A LESSERKNOWN FUND WITH SIMILAR OBJECTIVES THAT'S STILL OPEN OR A FUND RUN BY THE SAME MANAGER AS THE ONE THAT'S CLOSING THESE WELLREGARDED SMALL COMPANY STOCK FUNDS ARE STILL OPEN THEY ALL INVEST IN INEXPENSIVE VALUE STOCKS NONE CHARGES A SALES OR REDEMPTION FEE ALL HAVE ANNUAL EXPENSES OF 2 OR LESS AND REQUIRE A MINIMUM INVESTMENT OF 2000 OR LESS THESE STILLOPEN FUNDS ARE RUN BY MANAGERS OF FUNDS THAT CLOSED IN RECENT MONTHS SOURCES MORNINGSTAR MUTUAL FUNDS FUND COMPANIES 9303230090 930323 NOTABLE & QUOTABLE FROM AN ARTICLE BY BARBARA DAFOE WHITEHEAD TITLED DAN QUAYLE WAS RIGHT IN THE APRIL ISSUE OF THE ATLANTIC MONTHLY DIVORCE AND OUTOFWEDLOCK CHILDBIRTH ARE TRANSFORMING THE LIVES OF AMERICAN CHILDREN IN THE POSTWAR GENERATION MORE THAN 80 PERCENT OF CHILDREN GREW UP IN A FAMILY WITH TWO BIOLOGICAL PARENTS WHO WERE MARRIED TO EACH OTHER BY 1980 ONLY 50 PERCENT COULD EXPECT TO SPEND THEIR ENTIRE CHILDHOOD IN AN INTACT FAMILY IF CURRENT TRENDS CONTINUE LESS THAN HALF OF ALL CHILDREN BORN TODAY WILL LIVE CONTINUOUSLY WITH THEIR OWN MOTHER AND FATHER THROUGHOUT CHILDHOOD CONTRARY TO POPULAR BELIEF MANY CHILDREN DO NOT BOUNCE BACK AFTER DIVORCE OR REMARRIAGE DIFFICULTIES THAT ARE ASSOCIATED WITH FAMILY BREAKUP OFTEN PERSIST INTO ADULTHOOD CHILDREN WHO GROW UP IN SINGLEPARENT OR STEPPARENT FAMILIES ARE LESS SUCCESSFUL AS ADULTS PARTICULARLY IN THE TWO DOMAINS OF LIFE LOVE AND WORK THAT ARE MOST ESSENTIAL TO HAPPINESS NEEDLESS TO SAY NOT ALL CHILDREN EXPERIENCE SUCH NEGATIVE EFFECTS HOWEVER RESEARCH SHOWS THAT MANY CHILDREN FROM DISRUPTED FAMILIES HAVE A HARDER TIME ACHIEVING INTIMACY IN A RELATIONSHIP FORMING A STABLE MARRIAGE OR EVEN HOLDING A STEADY JOB DESPITE THIS GROWING BODY OF EVIDENCE IT IS NEARLY IMPOSSIBLE TO DISCUSS CHANGES IN FAMILY STRUCTURE WITHOUT PROVOKING ANGRY PROTEST MANY PEOPLE SEE THE DISCUSSION AS NO MORE THAN AN ATTACK ON STRUGGLING SINGLE MOTHERS AND THEIR CHILDREN 9303230089 930323 SEC FILES FRAUD SUIT AGAINST THREE BROKERS IN PAINEWEBBER PROBE CHICAGO THE SECURITIES AND EXCHANGE COMMISSION FILED SUIT AGAINST TWO FORMER AND ONE CURRENT PAINEWEBBER GROUP INC BROKERS IN A CONTINUING INQUIRY INTO MISCONDUCT AT SOME OF THE COMPANY'S RETAIL BROKERAGE BRANCHES IN A SUIT FILED IN FEDERAL COURT IN BIRMINGHAM ALA THE SEC ALLEGED THAT JOHN DAY DAVID EAST AND DAVID L ARNOLD DEFRAUDED TWO CLIENT ACCOUNTS OF ABOUT 12 MILLION THE SEC SAID THAT MR DAY 30 YEARS OLD DEVELOPED A SCHEME TO DEFRAUD HIS CLIENTS ON INDEX OPTIONS FROM DECEMBER 1987 TO MARCH 1988 AND THAT MR EAST 41 AND MR ARNOLD 42 ASSISTED HIM THE SEC ALLEGES MR DAY PURCHASED STOCK AND INDEX OPTIONS EARLY IN THE DAY ALLOCATING PURCHASES TO CLIENTS IF PRICES FELL WHILE KEEPING THE SECURITIES FOR HIMSELF AND HIS ASSOCIATES IF PRICES ROSE WE ALLEGE THEY WERE WORKING IN COLLUSION SAID DAVID MEDOW BRANCH CHIEF OF THE DIVISION OF ENFORCEMENT AT THE SEC'S CHICAGO OFFICE THEY WERE GAMBLING WITH OTHER PEOPLE'S MONEY THE SUIT SEEKS PERMANENT INJUNCTIONS ENJOINING THE MEN FROM FURTHER VIOLATIONS OF SECURITIES LAWS MR DAY AND MR ARNOLD NO LONGER WORK FOR PAINEWEBBER BUT MR EAST IS STILL EMPLOYED BY THE COMPANY IN BIRMINGHAM THE DEFENDANTS COULDN'T BE REACHED FOR COMMENT IN FEBRUARY PAINEWEBBER AGREED TO A SETTLEMENT WITH THE SEC THAT BANNED IT FROM OPENING ANY NEW ACCOUNTS AT FOUR BRANCHES THE UNUSUAL PENALTY REFLECTED THE SEC'S CLAIM THAT THE CONDUCT OF SIX BROKERS IN FIVE BRANCHES HAD COST CUSTOMERS 26 MILLION PAINEWEBBER DIDN'T ADMIT OR DENY THE ALLEGATIONS 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 9303230088 930323 BUSINESS BRIEF PERELMAN'S FIRM TO BUY MARVEL STAKE FOR 300 MILLION TO OFFSET HIGH TAXES NEW YORK RONALD PERELMAN HAS FIGURED OUT A WAY TO PAY LESS IN TAXES SPEND 300 MILLION MR PERELMAN'S HOLDING COMPANY MACANDREWS & FORBES HOLDINGS INC IS OFFERING TO PAY THAT AMOUNT FOR 11 MILLION SHARES OR AN ADDITIONAL 20 OF COMIC BOOK TRADING CARDS CANDY AND CHEWING GUM COMPANY MARVEL ENTERTAINMENT GROUP INC THE HOLDING COMPANY MADE THE 25ASHARE OFFER FOR THE ADDITIONAL SHARES INCLUDING FEES LARGELY TO CONSOLIDATE MARVEL'S TAX BILL WITH ITS OWN WITH 80 OWNERSHIP THE HOLDING COMPANY WILL PAY LESS IN CORPORATE TAXES THAN IF MARVEL ITSELF PAID THE TAX BILL NEWS OF THE OFFER SENT MARVEL STOCK SURGING 425 TO 2375 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY MACANDREWS & FORBES WHICH ALREADY OWNS 60 OF MARVEL ENTERTAINMENT'S SHARES OUTSTANDING EXPECTS TO SELL DEBT TO FINANCE THE STOCK PURCHASE CONSOLIDATING THE TAX BILLS OF THE COMPANIES WOULD ADD MARVEL'S EARNINGS TO THE PARENT THOSE EARNINGS HOWEVER WOULD BE OFFSET BY MACANDREWS AND FORBES' TAXLOSS CARRYFORWARD AND BY INTEREST ON THE FUNDS BORROWED TO PURCHASE MARVEL'S SHARES HARRY DEMOTT AN ANALYST WITH FIRST BOSTON CORP ESTIMATED THAT MARVEL'S 1993 TAX BILL WOULD BE ABOUT 40 MILLION AS LONG AS 40 MILLION IN TAXES IS MORE THAN THE INTEREST ON 300 MILLION IN DEBT MACANDREWS AND FORBES MAKES OUT GREAT IT'S AN EXPRESSION OF OUR CONFIDENCE IN MARVEL'S FUTURE SAID JAMES T CONROY A SENIOR VICE PRESIDENT AT MACANDREWS & FORBES IT'S AN EXCELLENT INVESTMENT AT THAT PRICE MARVEL ALSO ANNOUNCED IT WOULD INVEST AN ESTIMATED 7 MILLION IN WORKING CAPITAL FOR A 46 STAKE IN TOY BIZ INC A PRIVATELY HELD TOY COMPANY IN NEW YORK WITH ABOUT 65 MILLION IN REVENUE MARVEL WILL ALSO GUARANTEE A 30 MILLION WORKING CAPITAL LOAN FOR TOY BIZ AND ALLOW THE USE OF THE MARVEL MASTER TOY LICENSE UNDER THE AGREEMENT WHICH IS SUBJECT TO REGULATORY APPROVALS TOY BIZ WILL DEVELOP A FULL LINE OF MARVEL TOYS AND EXPAND DISTRIBUTION INTERNATIONALLY TOY BIZ'S PRODUCTS INCLUDE CABOODLES BABY LOVES TO TALK THE ELIMINATOR AND SINCE 1990 THE MARVEL SUPER HERO ACTION FIGURES XMEN AND SPIDERMAN TOY BIZ OWNER ISAAC PERLMUTTER WILL BECOME CHAIRMAN OF TOY BIZ AND TOY CREATOR AVI ARAD WILL TAKE AN EQUITY INTEREST AND DEVELOP TOYS EXCLUSIVELY FOR THE COMPANY MR DEMOTT POINTS OUT THAT INSTEAD OF ROYALTIES MARVEL WILL NOW GET A PERCENTAGE OF TOY BIZ'S EARNINGS FROM A FINANCIAL STANDPOINT THEY'LL GET THEIR MONEY BACK VERY QUICKLY THERE ARE GREAT MARGINS IN THE BUSINESS AND IT GIVES MARVEL MORE CONTROL OF THE PRODUCT 9303230086 930323 LAW LEGAL BEAT SIGNS OF BATTLES OVER BILLBOARDS ARE EASY TO SEE BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL BILLBOARDS AREN'T COMING DOWN WITHOUT A FIGHT WITHIN THE PAST DECADE HUNDREDS OF COMMUNITIES HAVE ORDERED COMMERCIAL SIGNS OFF THE SIDES OF LOCAL ROADS AND EITHER BANNED THEM OUTRIGHT OR LIMITED THEM TO CERTAIN ISOLATED INDUSTRIAL ZONES BUT MANY OF THE LOCAL ORDINANCES HAVE ALLOWED THE BILLBOARDS TO REMAIN DURING MULTIYEAR PHASEOUT PERIODS AND AS MANY OF THOSE PERIODS ARE NEARING THEIR END LITIGATION IS HEATING UP COMMUNITIES SAY THEIR BANS ARE LEGITIMATE EFFORTS TO REDUCE TRAFFIC HAZARDS AND IMPROVE THE LOCAL ENVIRONMENT BUT SOME OF THE BIGGEST PLAYERS IN THE 15 BILLION BILLBOARD INDUSTRY ARE CLAIMING IN LAWSUITS THAT THE BANS INSTEAD AMOUNT TO CONFISCATION OF PRIVATE PROPERTY AND CENSORSHIP OF FREE SPEECH THE COMPANIES SEEK IN THEIR LAWSUITS EITHER TO CONTINUE DISPLAYING THE BILLBOARDS OR TO RECEIVE COMPENSATION FOR FINANCIAL LOSSES RESULTING FROM THE BAN CASES ARE PENDING AMONG OTHER PLACES IN CLEARWATER AND JACKSONVILLE FLA AND IN DURHAM AND WINSTONSALEM NC THE STAKES ARE PARTICULARLY HIGH IN THESE CASES BECAUSE THE CONSTITUTIONAL QUESTION OF WHETHER COMPENSATION IS REQUIRED REMAINS LARGELY UNRESOLVED AND IF COMPANIES SUCCEED IN REQUIRING ANY COMMUNITIES TO COMPENSATE THEM MANY OTHER CASHSTRAPPED LOCALITIES ARE LIKELY TO QUICKLY LOSE INTEREST IN THE IDEA OF BANNING BILLBOARDS LAWYERS SAY IN DURHAM FOR EXAMPLE FAIRWAY OUTDOOR ADVERTISING IS SEEKING 1 MILLION TO COMPENSATE FOR THE FAIRMARKET VALUE OF ITS 100 BILLBOARDS IN THAT CITY THE ELIMINATION OF THE COMPANY'S 100 WINSTONSALEM SIGNS WOULD COST SEVERAL TIMES AS MUCH SAYS WILLIAM SAM BYASSEE AN ATTORNEY FOR FAIRWAY BASED IN AUGUSTA GA OTHER BILLBOARD COMPANIES CLAIMING BIG LOSSES IN VARIOUS COMMUNITIES INCLUDE PATRICK MEDIA GROUP CHICAGO AND 3M NATIONAL ADVERTISING CO A UNIT OF MINNESOTA MINING & MANUFACTURING CO FAIRWAY 3M AND 13 OTHER COMPANIES ARE INVOLVED IN A JACKSONVILLE CASE IN WHICH 550 BILLBOARDS ARE AT ISSUE OFFICIALS IN DURHAM AND JACKSONVILLE SAY THEIR LOCAL GOVERNMENTS WOULDN'T BE ABLE TO AFFORD MAKING FULL COMPENSATION TO BILLBOARD COMPANIES WITHOUT RAISING TAXES SAYS KAREN SINDELAR AN ATTORNEY FOR DURHAM I DON'T KNOW IF THE CITY COUNCIL WOULD CHOOSE TO PAY OR LET THE SIGNS STAY UP LEGALLY THE COMPANIES' CLAIM THAT THEIR FREESPEECH RIGHTS ARE AT STAKE IS SEEN BY SOME LAWYERS AS THE WEAKER OF THE TWO ARGUMENTS THE COMPANIES ARE MAKING THE SUPREME COURT HASN'T SAID EXPLICITLY THAT COMMERCIAL BILLBOARDS CAN BE BANNED BUT A FEDERAL APPEALS COURT IN RICHMOND VA HAS CONCLUDED THAT BASED ON WHAT THE SUPREME COURT HAS WRITTEN IN THE PAST ABOUT COMMERCIAL SPEECH DURHAM'S BAN DOESN'T VIOLATE FIRST AMENDMENT GUARANTEES POSSIBLY MORE PROMISING FOR THE COMPANIES IS THE CLAIM STILL PENDING IN DURHAM AND ELSEWHERE THAT THE BANS RENDER COMPANIES' PROPERTY WORTHLESS AND THEREFORE ARE GOVERNMENT TAKINGS WARRANTING FULL COMPENSATION UNDER THE FIFTH AMENDMENT TO THE US CONSTITUTION THE SUPREME COURT HAS RULED THAT WHEN A REGULATION DENIES AN OWNER ALL OF A PROPERTY'S VALUE COMPENSATION MUST BE PAID BUT THE COURT HAS LEFT UNRESOLVED THE ISSUE OF A PARTIAL TAKING WHEN THE VALUE OF A PROPERTY IS SUBSTANTIALLY REDUCED BUT NOT DESTROYED THE COMMUNITIES ARGUE THAT THEIR PHASEOUT PERIODS USUALLY FIVE YEARS OR MORE GIVE COMPANIES THE OPPORTUNITY TO CONTINUE REAPING PROFITS FOR A SIGNIFICANT PERIOD OF TIME AND THUS THAT THE PROPERTY VALUE ISN'T COMPLETELY DESTROYED IN ADDITION THEY SAY THE ACTUAL BILLBOARDS AREN'T CONFISCATED AND CAN BE RELOCATED ONE LAWYER FOR JACKSONVILLE GOES FURTHER TO ARGUE THAT THE BILLBOARD BANS FALL WITHIN THE GOVERNMENT'S POWER TO REGULATE BUSINESSES THROUGH SUCH MECHANISMS AS ZONING ENVIRONMENTAL ORDINANCES OR EVEN ANTIGAMBLING LAWS STEPHEN DURDEN THE ATTORNEY FOR JACKSONVILLE NOTES THAT FLORIDA BANNED SLOT MACHINES SOME TIME AGO WITHOUT PAYING COMPENSATION TO ANYONE WHY ARE ILLEGAL BILLBOARDS ANY DIFFERENT FROM ILLEGAL SLOT MACHINES HE ASKS WHILE SOME OF THE CASES AWAIT COURT HEARINGS AND TRIALS THAT COULD RESOLVE THE LEGAL QUESTIONSAS EARLY AS THIS SUMMER IN THE CASE OF THE DURHAM LITIGATIONOTHER DISPUTES BETWEEN COMPANIES AND COMMUNITIES MAY END UP BEING SETTLED WITHOUT COURT ACTION DANIEL MCGINN A NONLAWYER MEDIATOR FOR 3M NATIONAL SAYS HE HOPES TO REACH AN OUTOFCOURT DEAL WITH JACKSONVILLE SIMILAR TO THE ONES THE COMPANY HAS ALREADY HAMMERED OUT WITH CHARLESTON SC AND RALEIGH NC AMONG OTHER THINGS MR MCGINN SAYS SUCH AGREEMENTS PERMIT SIGNS IN CERTAIN ZONES AND EXTEND THE PHASEOUT PERIOD FOR SIGNS OUTSIDE SUCH AREAS PATRICK MEDIA WHICH IS GOING TO COURT IN CLEARWATER SAYS ITS POLICY IS TO AVOID LAWSUITS OVER BILLBOARDS WHEN SETTLEMENTS CAN BE REACHED INSTEAD THE COMPANY IS SEEKING TO OPEN TALKS WITH HOUSTON OFFICIALS TO AVOID SUING THAT CITY MEANWHILE THE CHICAGO SUBURB OF DES PLAINES ILL HAS REACHED A TENTATIVE SETTLEMENT IN A BILLBOARD DISPUTE WITH UNIVERSAL OUTDOOR INC FORTUNATELY FOR THE BILLBOARD COMPANIES THE DISPUTES ARE LIMITED TO LOCAL ROADS UNDER THE FEDERAL HIGHWAY BEAUTIFICATION ACT OF 1965 OWNERS OF BILLBOARDS ALONG FEDERAL ROADS MUST BE COMPENSATED FOR SIGNS THAT ARE REMOVED BUT BECAUSE THERE HASN'T BEEN MUCH MONEY TO DO THAT FEW SUCH BANS HAVE BEEN ORDERED A CLINIC OFFERING PREGNANCY TESTS MUST DISCLOSE ITS ANTIABORTION PHILOSOPHY IN ADS AT LEAST UNTIL A LAWSUIT OVER THE MATTER IS RESOLVED A NEW YORK STATE JUDGE RULED ALTERNATE PREGNANCY CENTER OF MAHOPAC FALLS NY ADVERTISED UNDER THE YELLOWPAGES HEADINGS FOR ABORTION INFORMATION SERVICES HEALTH CARE SERVICES AND BIRTH CONTROL INFORMATION CENTERS BUT WHEN WOMEN VISITED THE CENTER FOR A PREGNANCY TEST THEY WERE SHOWN A SLIDE PRESENTATION ABOUT THE DANGERS OF ABORTION THE SURGICAL PROCEDURES INVOLVED AND PICTURES OF ABORTED FETUSES THE NEW YORK STATE ATTORNEY GENERAL SUED THE NONPROFIT CLINIC LAST YEAR FOR ALLEGEDLY MAKING FALSE ADVERTISING CLAIMS JUDGE RALPH BEISNER RULED THAT UNTIL THE LITIGATION IS RESOLVED THE CENTER MUST STATE IN ITS PRINTED ADVERTISING THAT IT IS EITHER PROLIFE OR ANTIABORTION IT IS UNDISPUTED THAT APC IS AN ANTIABORTION PROLIFE ORGANIZATION AND PROVIDES NEITHER SERVICES NOR REFERRALS WITH RESPECT TO ABORTION APC'S ANTIABORTION PHILOSOPHY CANNOT BE DISCERNED FROM ITS NAME OR ADVERTISEMENTS THE JUDGE SAID IN HIS RULING THE CENTER ARGUED THAT ITS FREESPEECH RIGHTS WERE BEING VIOLATED AND THAT THE FALSEADVERTISING LAWS DON'T APPLY TO NONPROFIT GROUPS OFFERING FREE SERVICES LAWRENCE WASHBURN A LAWYER REPRESENTING THE CENTER SAID THE CLINIC WILL COMPLY WITH THE JUDGE'S TEMPORARY ORDER THE STATE ALSO ACCUSED THE CLINIC OF PRACTICING MEDICINE WITHOUT A LICENSE THE CLINIC WHICH HAS NO MEDICAL PERSONNEL CLAIMS IT COMMITTED NO VIOLATION BECAUSE IT USED OVERTHECOUNTER PREGNANCY TESTS THAT CAN BE BOUGHT BY CONSUMERS THE JUDGE HASN'T RULED ON THAT ALLEGATION INSOLVENT TRUCKING COMPANIES CAN TRY TO COLLECT COMPENSATION FROM THEIR SHIPPING CUSTOMERS FOR ALLEGED UNDERCHARGES WITHOUT FIRST GETTING THE GOVERNMENT'S GOAHEAD A FEDERAL APPEALS COURT SAID THE INTERSTATE COMMERCE COMMISSION WHICH LOST IN THE CASE SAID THE RULING BY THE APPEALS COURT IN PHILADELPHIA MEANS THE COMMISSION WILL BE LESS ABLE TO PROTECT SHIPPERS FROM BULLYING BY BANKRUPTCYCOURT TRUSTEES THE DECISION BY A THREEJUDGE PANEL OF THE APPEALS COURT INVALIDATED A 1992 COMMISSION RULE THAT ALLOWED THE AGENCY TO SCREEN MANY CLAIMS BY INSOLVENT TRUCKING COMPANIES AGAINST SHIPPING CUSTOMERS THE COURT RULED THAT SUCH SCREENING EXCEEDED THE COMMISSION'S ENFORCEMENT POWERS THE DECISION COVERS DELAWARE NEW JERSEY AND PENNSYLVANIA HUNDREDS OF THOUSANDS OF SUCH CLAIMS AGAINST SHIPPERS HAVE BEEN FILED IN COURT AS BANKRUPTCYCOURT TRUSTEES FOR THE TRUCKING COMPANIES SEEK BILLIONS OF DOLLARS IN REIMBURSEMENT FOR DISCOUNT RATES GRANTED IN THE LATE 1980S A SEPARATE FEDERAL APPEALS COURT IN SAN FRANCISCO LAST YEAR PREVENTED ONE COMPANY TRANSCON LINES LOS ANGELES FROM PURSUING 1 BILLION IN CLAIMS THAT THE TRUCKING COMPANY SAID IT DESERVED BECAUSE THE DISCOUNT FARES WERE INVALID BUT OTHER CASES ARE PENDING THE COMMERCE COMMISSION HAD ARGUED THAT BANKRUPTCYCOURT TRUSTEES ARE HARASSING SHIPPING CUSTOMERS AND WINNING NUISANCE SETTLEMENTS THE APPEALSCOURT RULING LEAVES THE UNSOPHISTICATED SHIPPERS OUT AND UNPROTECTED IN ESSENCE SAID HENRI F RUSH THE COMMISSION'S DEPUTY GENERAL COUNSEL HE ADDED THAT THE COMMISSION IS CONSIDERING WAYS TO REGAIN ITS SCREENING FUNCTION EITHER THROUGH A COURT APPEAL OR LEGISLATIVE OR ADMINISTRATIVE ACTION JOSEPH L STEINFELD JR AN ATTORNEY FOR TRANSCON COUNTERED THAT LITTLE HARASSMENT HAS OCCURRED AND THAT EVEN WITHOUT SCREENING POWER THE COMMISSION COULD SUE ANY TRUSTEE WHO ENGAGED IN STRONGARM TACTICS WHO'S NEWS ROBERT H HUEY AN INTERNATIONAL TRADE LAWYER FORMERLY AT THE WASHINGTON OFFICE OF SQUIRE SANDERS & DEMPSEY JOINED THE WASHINGTON LAW FIRM OF HOWREY & SIMON AS A PARTNER ROBERT E BLOCH CHIEF OF THE PROFESSIONS AND INTELLECTUAL PROPERTY SECTION OF THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION WILL JOIN MAYER BROWN & PLATT AS A PARTNER IN ITS WASHINGTON OFFICE JUNDA WOO CONTRIBUTED TO THIS COLUMN 9303230085 930323 FLEMING RESTATEMENT CUTS NET FOR FISCAL '91 BUT INCREASES IT FOR '92 OKLAHOMA CITY FLEMING COS SAID A RESTATEMENT OF EARNINGS REQUESTED BY THE SECURITIES AND EXCHANGE COMMISSION RESULTED IN LOWER NET INCOME FOR FISCAL 1991 BUT IN HIGHER FISCAL 1992 PROFIT AND WILL BOOST EARNINGS FOR FISCAL 1993 THE ANNOUNCEMENT BUOYED FLEMING'S STOCK IN LATE NEW YORK STOCK EXCHANGE TRADING FLEMING WAS QUOTED AT 34125 UP 50 CENTS THE ACCOUNTING DISAGREEMENT STEMMED FROM THE 1988 SALE OF THE GROCERY WHOLESALER'S WHITE SWAN RESTAURANTSUPPLY UNIT TO A GROUP OF THE UNIT'S MANAGERS THE NEWLY INDEPENDENT COMPANY PAID FLEMING 35 MILLION FOR A NONCOMPETE AGREEMENT WHICH THE COMPANY INITIALLY INTENDED TO RECOGNIZE AS INCOME OVER A FIVEYEAR PERIOD IN THE SECOND QUARTER OF 1991 FLEMING DECIDED TO RECORD THE REMAINING 159 MILLION OF INCOME THE SEC HOWEVER REQUESTED THAT THE COMPANY REVERT TO THE PREVIOUS AMORTIZATION SCHEDULE AS A RESULT THE COMPANY REDUCED PREVIOUSLY REPORTED FISCAL 1991 PRETAX INCOME BY 127 MILLION TO 1043 MILLION AND INCREASED PRETAX INCOME FOR FISCAL 1992 ENDED DEC 26 BY 7 MILLION TO 1949 MILLION THE RESTATEMENT REDUCED FISCAL 1991 NET INCOME TO 644 MILLION OR 182 A SHARE FULLY DILUTED FROM 723 MILLION OR 206 A SHARE FISCAL 1992 NET ROSE TO 1189 MILLION OR 321 A SHARE FROM 1145 MILLION OR 310 A SHARE THE COMPANY SAID ITS NET INCOME FOR THE CURRENT FISCAL YEAR WILL BE INCREASED 33 MILLION OR NINE CENTS A SHARE GARY VINEBERG AN ANALYST AT MERRILL LYNCH IN NEW YORK SAID FISCAL 1993 EARNINGS ESTIMATES FOR FLEMING RANGED FROM 320 TO 340 A SHARE BEFORE THE RESTATEMENT 9303230084 930323 REVIEW & OUTLOOK EDITORIAL HEALTH BUBBLE ABSENT ANY SMOKE SIGNALS TO THE CONTRARY FROM THE CLINTON HEALTHREFORM CONCLAVE INSIDE THE OLD EXECUTIVE OFFICE BUILDING CONSENSUS OPINION SUGGESTS WE'RE HEADING TOWARD SOME FORM OF PRICE CONTROLS ON THE US SYSTEM AND OF COURSE ANY SUCH SYSTEM OF GLOBAL SPENDING LIMITS IS GOING TO REQUIRE A GLOBAL REGULATOR TO POLICE THE PARTICIPANTS SORT OF LIKE THE GIANT WHITE BUBBLE IN THE PRISONER WHICH KEPT HERDING THE FLEEING PATRICK MCGOOHAN BACK INTO THE COMPLETE IF SOMEWHAT RESTRICTIVE LIFETIME CARE OF THE VILLAGE ALAS IT APPEARS THAT SOME RESIDENTS OF CANADA WHOSE SYSTEM THE CLINTONITES PROFESS TO ADMIRE ARE BEGINNING TO BREAK OUT OF THEIR OWN HEALTHCARE VILLAGE IN NOVEMBER DAVID MILLER AN 83YEAROLD ENTREPRENEUR FROM WINNIPEG WAS TOLD HE NEEDED A HERNIA OPERATION BUT COULDN'T GET A SURGERY DATE UNTIL MAY 20 IN A POPULATION OF 26 MILLION ABOUT 300000 CANADIANS ARE COOLING THEIR HEELS IN SUCH MEDICAL QUEUES AT ANY MOMENT WHICH IS WHY MR MILLER IS TEAMING UP WITH A US INSURER AMERICAN MEDICAL SYSTEMS OF WISCONSIN TO OFFER AN ESCAPE HATCH FOR 450 A YEAR CANADIANS WILL BE ABLE TO BUY A POLICY THAT WILL SHIP THEM SOUTH FOR TREATMENT WHENEVER THE WAITING LIST IS 45 DAYS OR LONGER THE POLICY EVEN COVERS FOOD AND LODGING FOR A LOVED ONE PLUS AIRFARE BACK TO CANADA THE PLAN WILL BE UNVEILED TOMORROW IN CANADA AND REPORTEDLY THE FIRST 200 CUSTOMERS WILL BE DOCTORS MR MILLER'S LIFEBOAT OUT OF CANADA'S NATIONAL HEALTH HAS ATTRACTED THE NOTICE OF ONE BIG US LABOR UNION WHICH WANTS TO GIVE ITS CANADIAN MEMBERS A CHANCE TO JOIN THE HEALTHCARE REFUGEES MOVING SOUTH THOUGH IT ALSO WANTS TO REMAIN ANONYMOUS AT THIS JUNCTURE TYPICALLY THE CLINTONITES ARE SWIMMING AGAINST THE WORLD TIDE MOVING TOWARD GREATER MEDICAL FREEDOM MORE THAN ONESIXTH OF BRITISH HOUSEHOLDS HAVE OPTEDOUT OF THE SQUALID NATIONAL HEALTH SERVICE AND NOW BUY PRIVATE MEDICAL INSURANCE PROPAGANDA NOTWITHSTANDING THE CANADIAN SYSTEM HASN'T DONE MUCH TO CONTAIN COSTS THE GOVERNMENT PAYS THE BILLS FOR EVERYBODY AND THE ONLY THING THAT KEEPS SPENDING FROM EXPLODING IS THE GOVERNMENT'S REFUSAL TO PROVIDE ENOUGH DOCTORS AND HOSPITALS AS A RESULT PATIENTS WAIT IN LINES THE SAME FORCES ARE ALREADY AT WORK HERE MEDICARE MEDICAID AND MANY PRIVATE INSURANCE NETWORKS NOW DICTATE FEES TO DOCTORS AND HOSPITALS AND SOME OF THE COST OF CARING FOR THESE PATIENTS IS DUMPED ON OTHER PAYERS THE CLINTON PLANNERS PRESUMABLY WOULD TAKE THE NEXT STEP AND SPREAD THESE PAYMENT CAPS ACROSS THE WHOLE INDUSTRY THE UNSPOKEN HOPE IS THAT INSURERS AND DOCTORS WOULD THEN BEGIN RATIONING OUT CARE TO THE SICKEST FIRST THAT IS THE CANADIAN APPROACH BUT EVERYONE KNOWS THAT CANADIANS ALL ALONG HAVE HAD THE US AS A SAFETY VALVE FOR SERIOUS PROBLEMS WHERE'S OUR SAFETY VALVE CUBA RATHER THAN CONSTRUCTING A GLOBAL HEALTHCARE BUBBLE WHAT SOMEBODY SHOULD BE WORRYING ABOUT IS FIXING THE SYSTEM'S INCENTIVES WHICH CURRENTLY DEPRIVE AMERICAN PATIENTS OF TOP VALUE FOR THEIR DOLLARS AND THE ONLY WAY TO DO THAT IS TO GET SAVVY COSTCONSCIOUS INDIVIDUAL CONSUMERS BACK INTO THE LOOP IN THE MEANTIME IF THE CLINTONITES DON'T WANT A REVOLT ON THEIR HANDS THEY OUGHT TO GIVE WILLING AMERICANS AN OPTOUT ALTERNATIVE SHORT OF GOING TO SWITZERLAND FOR THEIR MEDICAL CARE 9303230083 930323 CLINTON APPEALS DECISION ON HEALTHCARE MEETINGS WASHINGTON THE CLINTON ADMINISTRATION HAS APPEALED A FEDERAL DISTRICT COURT DECISION THAT WAS VIEWED AS A VICTORY FOR WHITE HOUSE EFFORTS TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM EARLIER THIS MONTH US DISTRICT JUDGE ROYCE C LAMBERTH RULED THAT PRESIDENT CLINTON'S HEALTHCARE TASK FORCE AND ITS WORKING GROUPS COULD MEET IN SECRET WHILE CRAFTING THE DETAILS AND RECOMMENDATIONS OF THE ADMINISTRATION'S HEALTH PROGRAM HE ALSO RULED HOWEVER THAT THE TASK FORCE WHICH IS LED BY HILLARY RODHAM CLINTON MUST MEET IN PUBLIC WHEN GATHERING FACTS AND INFORMATION AT THE TIME OF THE RULING A WHITE HOUSE SPOKESMAN SAID THE PRESIDENT WAS GENERALLY GRATIFIED BY THE DECISION AND WOULD ABIDE BY IT BUT YESTERDAY A WHITE HOUSE OFFICIAL SAID THE ADMINISTRATION DECIDED TO APPEAL BECAUSE IT BELIEVES THE COURT DECISION WOULD SET A DANGEROUS PRECEDENT THREE HEALTHCARE GROUPS HAD CHALLENGED THE RIGHT OF THE TASK FORCE TO MEET BEHIND CLOSED DOORS THEY ARGUED THAT GOVERNMENT BODIES WITH NONGOVERNMENTAL MEMBERS MUST HAVE OPEN MEETINGS MRS CLINTON THEY ARGUED IS NOT A MEMBER OF THE GOVERNMENT 9303230082 930323 CLINTON'S SUMMERJOB PLAN FACES RESISTANCE IN SENATE WASHINGTON PRESSURE FROM POWERFUL SENATE DEMOCRATS IS FORCING THE WHITE HOUSE TO GIVE GROUND ON A PROPOSAL TO TARGET SUMMERJOB FUNDS MORE TO URBAN AREAS WITH THE HIGHEST POPULATIONS OF POOR YOUTH THE NEW FORMULA IS PART OF THE ADMINISTRATION'S 163 BILLION ECONOMIC STIMULUS PACKAGE WHICH INCLUDES AN ESTIMATED 1 BILLION FOR SUMMER JOBS AND AN ACADEMICENRICHMENT PROGRAM AIMED AT LOWINCOME TEENAGERS THE HOUSE LAST WEEK APPROVED THE MEASURE INTACT BUT IT APPEARS TO BE FACING RESISTANCE IN THE SENATE FROM LABOR COMMITTEE CHAIRMAN EDWARD KENNEDY AND APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD SEN BYRD'S SUPPORT FOR THE BILL IS CRUCIAL AND THE WEST VIRGINIA DEMOCRAT IS TO MEET WITH PRESIDENT CLINTON TO DISCUSS THE MEASURE THIS MORNING THE FULL APPROPRIATIONS PANEL IS SCHEDULED TO TAKE UP THE BILL ONLY HOURS LATER AND THE ADMINISTRATION IS PREPARED FOR SEN BYRD TO THEN MODIFY THE LANGUAGE TO PRESERVE THE CURRENT FUNDING FORMULA WHICH IS CONSIDERED MORE BENEFICIAL TO WEST VIRGINIA AND SEN KENNEDY'S HOME STATE OF MASSACHUSETTS 9303230081 930323 MARKETING & MEDIA ADVERTISING BACKERS OF WORLD CUP SOCCER FOOT 20 MILLION BILL TO GET FANS ROLLING BY KEVIN GOLDMAN BACKERS OF THE 1994 WORLD CUP SOCCER CHAMPIONSHIP WHICH WILL BE HELD NEXT YEAR IN THE US FOR THE FIRST TIME ARE ALREADY TRYING TO KICK UP INTEREST IN THE SPORT HERE WITH A 20 MILLION AD CAMPAIGN FIFA'S GOAL IS TO LURE AMERICAN SPORTS FANS WHO ARE TYPICALLY MORE COMFORTABLE PLOPPING IN FRONT OF THE TV SET WITH A BOWL OF SALTY SNACKS WATCHING AMERICAN FOOTBALL BASKETBALL AND BASEBALL WHEN AIRED IN COUNTRIES SUCH AS SPAIN AND BRAZIL THE WORLD CUP HAS BEEN A BIG DRAW AS MUCH FOR THE SPORT AS FOR THE FIST FIGHTS AND RIOTS IN THE STADIUMS BUT IN THE US WHERE PROFESSIONAL SOCCER HAS NEVER CAUGHT ON AS A MAJOR TV SPECTATOR SPORT THE WORLD CUP MAY STRIKE SPORTS FANS AS A WORLD CLASS BORE AND THERE AREN'T ANY BIG NAME STARS ON THE SOCCER FIELD THAT AMERICANS CAN IDENTIFY WITH EVEN WORLD CUP OFFICIALS CONCEDE IT IS A TOUGH SELL NO QUESTION ABOUT IT SAYS JIM TRECHER A WORLD CUP SENIOR VICE PRESIDENT WE'D BE FOOLS TO SAY ANYTHING ELSE THE WORLD CUP HAS AN IMPRESSIVE LINEUP OF SPONSORS ALL BUT ONE OF WHICH MCDONALD'S HAS SPONSORED THE EVENT IN OTHER COUNTRIES CANON COCACOLA FUJI GILLETTE GENERAL MOTORS' GMC TRUCKS MASTERCARD INTERNATIONAL MARS'S SNICKERS CANDY BAR JVC AND PHILIPS ELECTRONICS NV IN A STATEMENT ED RENSI MCDONALD'S USA PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THIS IS A UNIQUE OPPORTUNITY TO BRING THE WORLD'S MOST POPULAR SPORT TO THE MILLIONS OF CUSTOMERS WHO VISIT OUR RESTAURANTS EVERY DAY ADVERTISING AGENCY DENTSU IS MAKING THE ADS AS ALLAMERICAN AS POSSIBLE FOR INSTANCE THERE IS A SENDUP OF THE GRANT WOOD PORTRAIT AMERICAN GOTHIC OF THE DOURFACED FARMER HOLDING A PITCHFORK STANDING BESIDE HIS EQUALLY SOURPUSS WIFE IN THE WORLD CUP AD A SOCCER BALL IS ADDED TO THE PITCHFORK AND THE SLOGAN IS STARTING NOW IT'S AN AMERICAN CLASSIC ANOTHER PRINT AD FEATURES THE EVERGREEN PHOTOGRAPH OF ASTRONAUT NEIL ARMSTRONG STANDING ON THE MOON AND SALUTING OLD GLORY A SOCCER BALL HAS BEEN ADDED TO THE SHOT POSITIONED AT MR ARMSTRONG'S FOOT AS IF HE IS GETTING READY TO BOOT IT TO THE HEAVENS THE CAPTION WORLD CUP SOCCER'S FINAL FRONTIER A TELEVISION COMMERCIAL BEGINS OUT OF FOCUS WITH A VOICEOVER SAYING IN THE SUMMER OF 1994 MEN FROM 24 NATIONS WILL COME TO AMERICA TO DEFEND THEIR COUNTRIES THE FOOTAGE SNAPS INTO FOCUS AND SHOWS A GOALIE LEAPING TO STOP A SOCCER BALL FROM ENTERING THE GOAL DENTSU PRODUCED 10 SEPARATE TELEVISION SPOTS TO ACCOMMODATE EACH OF THE 10 ADVERTISERS EACH SPOT WILL END WITH THE 1994 WORLD CUP BROUGHT TO YOU IN PART BY WORLD CUP SOCCER HASN'T BEEN TELEVISED BY A BROADCAST NETWORK SINCE 1986 WHEN GENERAL ELECTRIC'S NBC DID THE HONORS THAT ENDED A 20YEAR MORATORIUM OF THE SPORT THE MOST RECENT TIME THE WORLD CUP BOUNCED ONTO THE TV SCREENS IN US HOMES WAS IN 1990 WHEN TURNER BROADCASTING SYSTEM'S TNT CABLE CHANNEL BROADCAST 32 GAMES THE GAMES ATTRACTED ON AVERAGE 2 OF THE US CABLE HOMES ACCORDING TO THE WORLD CUP BUT WHILE AMERICANS AREN'T USED TO WATCHING SOCCER THEY'RE PLAYING IT IN INCREASING NUMBERS 145 MILLION IN THE US ACCORDING TO THE SOCCER FEDERATION OF AMERICA A TRADE GROUP SOCCER IS THE NO 2 RANKED SPORT BEHIND BASKETBALL AMONG CHILDREN UNDER 12 YEARS OLD ACCORDING TO A STUDY PREPARED BY THE CHICAGOBASED TRADE GROUP BUT THE FLEETOFFOOT SPORT IS NO 4 AMONG THOSE UNDER 18 YEARS OLD BEATEN BY BASKETBALL VOLLEYBALL AND SOFTBALL THE WORLD CUP WANTS TO CAPITALIZE ON THAT INTEREST AND ASSURE ADVERTISERS THAT VIEWERS WON'T TUNE OUT NEXT SUMMER THE DENTSU ADS WILL BE SHOWN ON REGIONAL CABLE SPORTS CHANNELS WITH PRINT ADS RUNNING IN TIME PEOPLE SPORTS ILLUSTRATED AND SPORTS ILLUSTRATED FOR KIDS CHAS CONKLIN DENTSU'S CREATIVE DIRECTOR ON THE WORLD CUP ACCOUNT SAYS ADDITIONAL TELEVISION CAMPAIGNS ARE UNDER DISCUSSION ALTHOUGH NOTHING IS DEFINITE THE NEXT PHASE OF THE CAMPAIGN IS DUE IN THE SUMMER WHEN TICKETS GO ON SALE FOR THE WORLD CUP MATCHES WHICH ARE SCHEDULED TO BE HELD IN NINE LOCATIONS INCLUDING NEW JERSEY'S MEADOWLANDS LOS ANGELES CHICAGO DALLAS AND DETROIT RICHARD HUMPHREYS THE FORMER PRESIDENT OF SAATCHI & SAATCHI ADVERTISING WORLDWIDE IS SET TO ACQUIRE A STAKE IN AYER NEW YORK ALONG WITH OTHER INVESTORS AS PART OF A CAPITAL RESTRUCTURING AT THE BIG CLOSELY HELD AGENCY AYER CONFIRMED THAT MR HUMPHREYS WAS AMONG A GROUP OF INVESTORS TO WHOM AYER MANAGEMENT HAS AGREED TO SELL A SIGNIFICANT STAKE IN EXCHANGE FOR A CAPITAL INFUSION MR HUMPHREYS CURRENTLY CHIEF EXECUTIVE OFFICER OF THE BIRKDALE GROUP A SMALL LONDON SHOP COULDN'T BE REACHED TO COMMENT NEITHER THE SIZE OF THE STAKE NOR THE AMOUNT OF CAPITAL COULD BE DETERMINED AYER WHICH CLAIMED WORLDWIDE BILLINGS OF 15 BILLION LAST YEAR IS ONE OF THE FEW LARGE INDEPENDENT AGENCIES LEFT ON MADISON AVENUE IT IS CURRENTLY 100 OWNED BY MANAGERS AND EMPLOYEES WHEN A WIDELY ANTICIPATED MERGER BETWEEN AYER AND KETCHUM COMMUNICATIONS PITTSBURGH FAILED TO MATERIALIZE LAST MONTH AYER CHAIRMAN JERRY SIANO SAID THE AGENCY HAD LINED UP AN UNIDENTIFIED GROUP TO FINANCE ACQUISITIONS IN DIRECT RESPONSE PROMOTION AND PUBLIC RELATIONS ADWEEK MAGAZINE REPORTED THAT MR HUMPHREYS'S GROUP WOULD BUY A MAJORITY INTEREST AND THAT MR HUMPHREYS WOULD HAVE A SEAT ON THE AGENCY BOARD YESTERDAY AN AYER SPOKESMAN DECLINED TO COMMENT ON THOSE DETAILS BEYOND RELEASING A STAFF MEMO FROM MR SIANO DOWNPLAYING THE NEW INVESTORS' ROLE NEITHER MR HUMPHREYS NOR THE PARTNERSHIP WILL OWN AYER OUTRIGHT MR SIANO SAID IN THE MEMO MR HUMPHREYS WILL HAVE NO ROLE IN THE DAYTODAY OPERATIONS OF THIS AGENCY HOME DEPOT INC THE ATLANTA CHAIN OF HOME CENTERS IS REVIEWING ITS ESTIMATED 40 MILLION ACCOUNT THE INCUMBENT ADMARKETING LOS ANGELES ISN'T PARTICIPATING THE CLIENT SAID DICK HAMMILL HOME DEPOT SENIOR VICE PRESIDENT OF SALES AND MARKETING SAID THE CHAIN'S RAPID GROWTH CONTRIBUTED TO THE DECISION TO PART WAYS WITH THE INCUMBENT THE REVIEW COMES AS THE BIG RETAILER HAS DECIDED TO UNBUNDLE ITS MEDIA FROM THE REST OF ITS ADVERTISING ACCOUNT MR HAMMILL SAID THAT WITH THE REVIEW STILL IN ITS BEGINNING STAGES NO AGENCIES HAD YET BEEN RULED OUT A SHORT LIST OF CONTENDERS IS EXPECTED IN 30 DAYS BLOOMINGDALE'S FEDERATED DEPARTMENT STORES INC'S BLOOMINGDALE'S TAPPED TBWA ADVERTISING NEW YORK FOR AN ESTIMATED 5 MILLION TO 10 MILLION ADVERTISING ACCOUNT INDUSTRY EXECUTIVES SAID THE MOVE WOULD END A REVIEW THAT ALSO HAD INCLUDED FCB LEBER KATZ PARTNERS WHICH IS THE NEW YORK OFFICE OF FOOTE CONE & BELDING COMMUNICATIONS AND KIRSHENBAUM & BOND NEW YORK THE ACCOUNT WAS PREVIOUSLY AT GREY ADVERTISING BLOOMINGDALE'S DIDN'T RETURN CALLS SEEKING COMMENT 9303230080 930323 WHAT'S NEWS WORLDWIDE A COURT WEIGHED THE LEGALITY OF YELSTIN'S SEIZURE OF EMERGENCY POWERS TENSIONS CAUSED BY THE RUSSIAN PRESIDENT'S WEEKEND MOVE EBBED SOMEWHAT AS PARLIAMENT WAITED FOR THE COURT TO RULE BEFORE TAKING THE NEXT STEP IN ITS FIGHT TO RESTRICT YELTSIN'S AUTHORITY A COURT DECISION AGAINST YELTSIN COULD LEAD TO HIS IMPEACHMENT THE CONSTITUTIONAL COURT'S CHAIRMAN SATURDAY CALLED YELTSIN'S MOVE A COUP ATTEMPT BUT YESTERDAY INSISTED HE WAS NEUTRAL IN THE DISPUTE IN A CHICAGO SPEECH SECRETARY OF STATE CHRISTOPHER WARNED THE US WOULD PAY A FRIGHTENING PRICE IF RUSSIA WERE TO FALL INTO ANARCHY OR DESPOTISM THE CLINTON ADMINISTRATION IS MOVING TO REPLACE FBI DIRECTOR SESSIONS AND THE LEADING CANDIDATE TO SUCCEED HIM IS A MASSACHUSETTS JUDGE RICHARD STEARNS PEOPLE FAMILIAR WITH THE DISCUSSIONS SAID THE MOVE WILL OCCUR SOON BUT PROBABLY NOT UNTIL THE ARMED STANDOFF WITH A RELIGIOUS CULT NEAR WACO TEXAS ENDS TANKS BATTLED IN SARAJEVO'S WESTERN SUBURBS AS SERB FORCES THREATENED TO SEIZE POSITIONS COMMANDING APPROACHES TO THE BOSNIAN CAPITAL BOSNIAN SERB LEADER KARADZIC PROMISED THE UN SECURITY COUNCIL THAT AIR AND LAND CORRIDORS WOULD BE OPENED TO ALLOW THOUSANDS OF REFUGEES TO ESCAPE THE ENCIRCLED MUSLIM ENCLAVE OF SREBRENICA ISRAEL'S RABIN REJECTED CONSERVATIVE LAWMAKERS' DEMANDS FOR A CRACKDOWN ON ARABS AFTER A PALESTINIAN STABBED AND WOUNDED FIVE STUDENTS AND THE PRINCIPAL OF JERUSALEM HIGH SCHOOL IN THE GAZA STRIP FOUR PALESTINIANS WERE KILLED BY ISRAELI TROOPS RABIN SAID ISRAEL MUST ENDURE THE RENEWED UPRISING AND TRUST IN USSPONSORED PEACE TALKS A SPACE SHUTTLE LAUNCH WAS ABORTED THREE SECONDS BEFORE LIFTOFF AS COMPUTERS SHUT DOWN COLUMBIA'S ENGINES AFTER A VALVE IN ONE OF THEM FAILED TO CLOSE A NASA OFFICIAL SAID IT WOULD TAKE THREE WEEKS TO REMOVE THE ENGINE VALVES FOR ANALYSIS BUT THAT IT WAS TOO EARLY TO SAY HOW THE DELAY WOULD AFFECT THE SHUTTLE LAUNCH SCHEDULE THE PENTAGON SAID A US NUCLEARPOWERED SUBMARINE THE USS GRAYLING COLLIDED WITH A RUSSIAN SUBMARINE IN THE BARENTS SEA SATURDAY BUT DAMAGE TO BOTH WAS MINIMAL A RUSSIAN NAVY SPOKESMAN DECLINED TO IDENTIFY ITS VESSEL BUT SAID IT BELONGED TO A CLASS OF SUBMARINES EQUIPPED TO CARRY AS MANY AS 16 NUCLEAR MISSILES A MILITARY BASECLOSING PANEL SAID IT PROBABLY WOULD PUT TWO CALIFORNIA INSTALLATIONS BACK ON THE LIST OF FACILITIES UNDER CONSIDERATION TO BE CLOSED OR REALIGNED DEFENSE SECRETARY ASPIN TOOK MCCLELLAN AIR FORCE BASE AND THE PRESIDIO IN MONTEREY OFF THE CLINTON ADMINISTRATION'S LIST TO LESSEN THE ECONOMIC PAIN OF CLOSINGS IN THE STATE FRENCH CONSERVATIVE LEADERS URGED PRESIDENT MITTERRAND TO RESIGN FOLLOWING A ROUT OF HIS SOCIALIST PARTY IN THE FIRST ROUND OF LEGISLATIVE ELECTIONS SUNDAY WITH CONSERVATIVES ON COURSE TO FORM THE MOST RIGHTWING GOVERNMENT SINCE THE FIFTH REPUBLIC WAS FOUNDED IN 1958 THE LEADERS WARNED MITTERRAND NOT TO INTERFERE WITH THEIR PROGRAMS SOMALI NEGOTIATORS WRANGLED OVER THE WORDING OF A FINAL COMMUNIQUE DELAYING THE RESUMPTION OF PEACE TALKS INTERRUPTED BY THE WITHDRAWAL LAST WEEK OF A KEY MILITIA LEADER A UN SPOKESMAN SAID ALL 15 FACTIONS IN THE TALKS HAVE AGREED TO CREATE LOCAL ADMINISTRATIONS IN SOMALIA BUT CANNOT REACH A CONSENSUS ON FORMING A CENTRAL GOVERNMENT A RADICAL SHEIK'S LAWYERS SAID THEY WOULD BOYCOTT A NEW TRIAL SET BY EGYPT WHICH ACCUSES SHEIK OMAR ABDELRAHMAN OF INCITING ANTIGOVERNMENT VIOLENCE A VERDICT IN ABSENTIA COULD LEAD CAIRO TO ASK THE US TO EXTRADITE THE SHEIK WHO PREACHED AT MOSQUES ATTENDED BY SUSPECTS ARRESTED IN THE BOMBING OF THE WORLD TRADE CENTER THE HEAD OF THE FDA SAID HE IS PREPARED TO IMPOSE TOUGH NEW CONTROLS ON THE SEAFOOD INDUSTRY IN AREAS SUCH AS TEMPERATURE AND HANDLING TECHNIQUES TO DEAL WITH A RISE IN FOODBORNE ILLNESS KESSLER ALSO TOLD A FOODPOLICY CONFERENCE THE FDA NEEDS GREATER ENFORCEMENT POWERS TO TRACK DOWN ADULTERATED PRODUCTS THE SUPREME COURT LET STAND A RULING THAT SHIPWRECK SALVAGERS MUST SHARE THE TREASURES THEY FIND THE CASE INVOLVED THE SS CENTRAL AMERICA WHICH SANK OFF SOUTH CAROLINA MORE THAN 130 YEARS AGO WITH A CARGO OF CALIFORNIA GOLD AN APPEALS COURT RULED THE SALVAGERS MUST SHARE THE GOLD NOW VALUED AT ABOUT 1 BILLION WITH INSURERS 9303230079 930323 MARKETSCAN DIAPER FIRMS FIGHT TO STAY ON THE BOTTOM BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL IN THE BIG BUSINESS OF KEEPING BABIES' BOTTOMS DRY THE SWEETNESS AND LIGHT OF INFANCY ARE ONLY IN THE ADS BATTLING FOR A LARGER SHARE OF THE MORE THAN 4 BILLION THAT US PARENTS SPEND ANNUALLY ON DIAPERS WORLDWIDE MARKET LEADER PROCTER & GAMBLE CO IS ENCOUNTERING INCREASINGLY BRUTAL COMPETITION FROM PRIVATELABEL MAKERS WHOSE PRINCIPAL WEAPON IS LOWER PRICES AND FROM ARCHRIVAL KIMBERLYCLARK CO WHICH CONTINUES TO POUND P&G WITH SUCH PRODUCT INNOVATIONS AS A SUPERABSORBENT DIAPER HALF AS THICK AS OTHER DISPOSABLES IT'S A CRITICAL SITUATION FOR THE TWO MARKET LEADERS DIAPERS MAKE UP 16 OF WORLDWIDE SALES AT P&G AND 23 AT KIMBERLYCLARK P&G'S MARKET SHARE FOR ITS PAMPERS AND LUVS DIAPERS WHICH TAKEN TOGETHER ARE THE COMPANY'S LARGEST PRODUCT CATEGORY TUMBLED FOUR PERCENTAGE POINTS FOR THE 52 WEEKS ENDED JAN 24 SALES OF LUVS ALONE PLUMMETED 241 TO 5824 MILLION ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE WHICH RECORDS PURCHASES FROM GROCERS MASS MERCHANDISERS AND DRUGSTORES SALES OF PAMPERS IN THE SAME PERIOD TOTALED 117 BILLION UP 98 FROM A YEAR EARLIER TO NARROW THE PRICE GAP BETWEEN ITS PRODUCTS AND PRIVATE LABELS P&G TOOK WHAT IT CALLED CORRECTIVE PRICING ACTION SLASHING PRICES TWICE IN THE PAST 10 MONTHS WHILE KIMBERLYCLARK IS FEELING PRICING HEAT FROM PRIVATELABEL BRANDS TOO IT CONTINUES TO REAP THE REWARDS 423 MILLION LAST YEAR FROM THE DISPOSABLE HUGGIES PULLUPS TRAINING PANTS IT CREATED FOUR YEARS AGO P&G AT LONG LAST SAYS IT IS READY TO INTRODUCE SIMILAR TRAINING PANTS TO BE CALLED PAMPERS TRAINERS IN IRELAND HOLLAND AND CANADA POSSIBLY AN EFFORT TO STYMIE KIMBERLYCLARK'S EXPANSION OF PULLUPS INTO EUROPE P&G SAYS THE NEW TRAINING PANTS WILL BE INTRODUCED IN THE US IN TIME THIN IS IN ON THE PRODUCTDESIGN FRONT IN THE DIAPER WARS KIMBERLYCLARK IS BETTING ITS FUTURE ON ULTRATRIM ITS NEW THIN DIAPER THAT TAKES UP HALF THE SHELF SPACE OF RIVALS THUS APPEALING TO SPACESQUEEZED RETAILERS AS WELL AS PARENTS TURNED OFF BY THE BULK OF CONVENTIONAL DISPOSABLES KIMBERLYCLARK SAYS THE ULTRATRIMS CONSTITUTE ABOUT 40 OF ITS BUSINESS A RESPECTABLE SHOWING BUT INDICATIVE THAT THE THICKER HUGGIES BABY STEPS DIAPER STILL HAS A STRONG FOLLOWING INDEED MARY JO LEVINE OF PITTSBURGH SAYS SHE PREFERS THE REGULAR HUGGIES THE ULTRATRIMS SEEM STIFF THERE'S A LOT OF STUFF COMPRESSED INTO IT SHE SAYS WHATEVER THE MERITS OF ULTRATRIM THE PRODUCT TOOK P&G BY SURPRISE TWO WEEKS AFTER KIMBERLYCLARK LAUNCHED ULTRATRIMS LAST MAY P&G HASTILY ANNOUNCED ITS ULTRADRY BRAND WHICH LOOKS LIKE A REGULAR PAMPERS BUT WITH AN EXTRA LAYER OF ABSORBENT MATERIAL ATOP THE CROTCH WHICH PROMISES TO STAND UP TO MULTIPLE WETTINGS P&G SAID IT PLANNED AN EXTENSIVE ULTRADRY ROLLOUT LAST FALL HOWEVER THE PRODUCT REMAINS IN TEST MARKET IN EUGENE ORE P&G SAYS IT SOON WILL EXPAND INTO AN UNIDENTIFIED MAJOR CITY AN ANALYSIS BY ITS COMPETITOR PARAGON TRADE BRANDS INC WHICH MAKES PRIVATELABEL DIAPERS SHOWS THAT THE CURLY CELLULOSE FIBER IN THE ULTRADRY PAD INDEED IMPROVES THE DIAPER'S ABILITY TO ABSORB LIQUID FASTER THOUGH IT DOESN'T LOCK IT AWAY AS WELL AS OTHER DIAPERS THAT LEADS TO A WETTER DIAPER SAYS PARAGON RESEARCH VICE PRESIDENT JOHN COOK P&G CONCEDES THAT IT CONTINUES TO TRY TO IMPROVE ULTRADRY HOWEVER IN THE END WE'RE PRETTY SURE IT WILL ALL WORK SAYS DURK JAGER EXECUTIVE VICE PRESIDENT OF P&G HE NOTES THAT PART OF THE DELAY IN THE NATIONWIDE ROLLOUT OF ULTRADRY IS BECAUSE NEW PLANTS AND MACHINERY MUST BE GEARED UP TO MAKE THE NEW PRODUCT DIAPERS POSE A HOST OF SPECIAL MARKETING ISSUES A MERE 6 OF THE POPULATION BUYS DIAPERS AT ANY TIME SO PROMOTIONS TEND TO BE IN THE FORM OF REBATES SAMPLES GIVEN OUT IN MATERNITY WARDS OR COUPONS MAILED DIRECTLY TO HOUSEHOLD ADDRESSES OBTAINED FROM HOSPITALS OR CHILDBIRTH CLASSES MORE THAN 11000 CUSTOMERS ENTER AND ANOTHER 11000 EXIT THE MARKET EACH DAY MEANING BRANDS SUFFER A 40 TURNOVER EACH YEAR AND WITH DRAMATIC IMPROVEMENTS IN ABSORBENCY AND LEAKAGE CONTROL THE NUMBER OF DAILY DIAPER CHANGES HAS DECLINED STILL IT'S A HUGE BUSINESS IF THE THREE MAJOR BRANDS WERE SEPARATE COMPANIES RATHER THAN PIECES OF CONGLOMERATES THEY WOULD EACH RANK ON THE FORTUNE 500 THAT IS BECAUSE DISPOSABLE DIAPERS ARE AN ITEM THAT MORE THAN NINE OF 10 NEW MOTHERS BUY SHELLING OUT AN ESTIMATED 1350 OVER THE PERIOD A CHILD WEARS DIAPERS OR ROUGHLY 40 TO 50 A MONTH BEFORE THE BIRTH OF HER SON LAST NOVEMBER EILEEN O'HARA OF WASHINGTON DC PURCHASED FOUR DOZEN CLOTH DIAPERS FIGURING SHE COULD BE ENVIRONMENTALLY CONSCIOUS AS WELL AS SAVE MONEY THE IDEA OF CLOTH DIAPERS WENT AWAY ON DAY THREE AND HASN'T RETURNED SAYS MS O'HARA WHO RECENTLY RESUMED HER STRATEGICPLANNING JOB WHILE IT'S DEPRESSING WHEN YOU PAY 999 AND GET JUST 40 DIAPERS IT'S KIND OF LIKE A TOLL ROAD YOU PAY FOR THE CONVENIENCE INFORMATION RESOURCES DATA DON'T INCLUDE SALES AT CLUB STORES AND TOYS R US INC WHERE PRIVATE LABELS ARE PARTICULARLY STRONG TOYS R US USES DIAPERS AS A LOSS LEADER TO DRAW PARENTS INTO THE STORE STRATEGICALLY POSITIONING ITS HUGE DIAPER RACKS AT THE BACK THE DIAPERS SOLD AT TOYS R US ARE MADE BY PARAGON ONCE A UNIT OF WEYERHAEUSER CO PARAGON SAYS IT MAKES 65 OF THE STORE BRANDS SOLD IN THE US AND ITS REVENUES SURGED 22 TO 4848 MILLION IN 1992 PARAGON HAS A PARTICULARLY STRONG BUSINESS MAKING SMILES DIAPERS FOR WALMART STORES INC'S SAM'S CLUB SINCE P&G'S PRICE CUTS NARROWED THE GAP BETWEEN ITS BRANDS AND PRIVATELABEL PRODUCTS PAMPERS' MARKET SHARE HAS CLIMBED SAYS THE COMPANY'S MR JAGER IN ADDITION HE SAYS THE LUVS BRAND WILL BE SHORED UP BOTH WITH UNDISCLOSED DESIGN AS WELL AS PROMOTIONAL CHANGES MR JAGER ALSO CITES A SUBSTANTIAL LEAD IN INTERNATIONAL SALES WHERE P&G IS FAR AHEAD OF KIMBERLYCLARK TODAY ONLY 6 OF THE WORLD'S BABIES WEAR DISPOSABLE DIAPERS SAYS MR JAGER SO THE POTENTIAL IS HUGE OUR WORLDWIDE DIAPER BUSINESS IS IN GOOD SHAPE KIMBERLYCLARK IS WATCHING P&G'S PRICE MOVES CLOSELY IT MATCHED P&G'S FIRST PRICE CUT LAST MAY BUT NOT ITS 7 CUT FIVE MONTHS LATER INSTEAD IT EFFECTIVELY RAISED PRICES 3 JAN 1 BY REDUCING THE COUNT PER BAG BY 10 WHILE LOWERING PRICES JUST 7 NOT ALL STORES ARE PASSING ON THE KIMBERLYCLARK PRICE REDUCTION WHICH ALSO HELPS P&G P&G IS PUTTING STICKERS ON ITS PACKAGES TO POINT OUT ITS LARGER COUNTS SAYING STILL 40 MEANWHILE KIMBERLYCLARK IS AGGRESSIVELY MARKETING ITS PULLUPS ALTHOUGH TWICE AS EXPENSIVE AS REGULAR DIAPERS 50 CENTS APIECE PULLUPS RESEMBLE UNDERPANTS BUT HAVE ABSORBENT LINING AND SIDES WHICH CAN BE TORN FOR EASY REMOVAL THE COMPANY MAILS OUT A STORYBOOK FOR READING TO TODDLERAGE CHILDREN CALLED I'M A BIG KID NOW BABIES DON'T WEAR TRAINING PANTS READS THE PICTURE BOOK BUT BIG KIDS LIKE ME WEAR THEM THE BOOK WHICH ALSO INCLUDES TIPS ON TOILET TRAINING IS A BIG HIT WITH PARENTS KIMBERLYCLARK HAS SCORED A HIT WITH ITS HUGGIES PULLUPS WHILE PROCTER & GAMBLE'S LUVS IS LOSING MARKET SHARE 9303230078 930323 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 DIAMOND SHAMROCK INC 100 MILLION OF DEBENTURES DUE APRIL 1 2023 PRICED AS 8 AT 99605 TO YIELD 8035 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 124 POINTS ABOVE THE TREASURY 30YEAR BOND RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION ISSUE OF DEBENTURES DUE MARCH 29 1995 PRICED AT PAR TO YIELD 407 THE ISSUE NONCALLABLE FOR ONE YEAR WAS PRICED AT A SPREAD OF 0105 POINT ABOVE THE TREASURY TWOYEAR NOTE THE ISSUE WILL SOLD THROUGH LEHMAN BROTHERS FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION ISSUE OF NOTES DUE MARCH 29 1996 PRICED AT PAR TO YIELD 458 INITIALLY THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO THE ISSUE WAS PRICED AT A SPREAD OF 023 POINT ABOVE THE TREASURY THREEYEAR NOTE ALAMEDA COUNTY CALIF 170 MILLION OF 1993 REFUNDING CERTIFICATES OF PARTICIPATION PRICED BY A GRIGSBY BRANDFORD & CO GROUP YIELDS RANGE FROM 230 IN JUNE 1993 TO 580 IN 2014 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP COAST SAVINGS FINANCIAL INC TWO MILLION COMMON SHARES PRICED AT 1775 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES COMMONWEALTH ASSOCIATES GROWTH FUND INC 21 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY COMMONWEALTH ASSOCIATES FIRST DATA CORP SECONDARY OFFERING OF 32 MILLION COMMON SHARES PRICED AT 32 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC RESPONSE TECHNOLOGIES INC RIGHTS OFFERING FOR 33 MILLION COMMON SHARES SHAREHOLDERS WILL BE ISSUED ONE NONTRANSFERABLE RIGHT FOR EACH 10 SHARES HELD WITH EACH RIGHT ENTITLING THE PURCHASE OF ONE COMMON SHARE FOR 275 CANADIAN DOLLARS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY CITIBANK THE OFFERING SERIES GOLD 1505 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY MERRILL LYNCH THE OFFERING SERIES 199335 IS BACKED BY FANNIE MAE'S 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 725 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS ONTARIO HYDRO CANADA 15 BILLION CANADIAN DOLLARS OF 7 1/4 GLOBAL BONDS DUE MARCH 31 1998 AT ISSUE AND FIXED REOFFER PRICE OF 9870 VIA SCOTIA MCLEOD INC RBC DOMINION SECURITIES GOLDMAN SACHS INTERNATIONAL AND IBJ INTERNATIONAL BONDS YIELD 7567 ANNUALLY A SPREAD OF 073 POINT ABOVE COMPARABLE CANADIAN GOVERNMENT BOND FEES 030 POINT INTEREST PAYABLE SEMIANNUALLY BAYERISCHE HYPOTHEKEN & WECHSELBANK AG GERMANY 100 MILLION CANADIAN DOLLARS OF EUROBONDS DUE NOV 5 1996 AT ISSUE PRICE 10050 VIA HAMBROS BANK LTD REOFFERED AT 99375 TO YIELD 719 ANNUALLY A SPREAD OF 050 POINT ABOVE 6 CANADIAN GOVERNMENT NOTE DUE 1996 FEES 1 3/8 ROCHE HOLDING LTD SWITZERLAND 1 BILLION OF 2 3/4 EUROBONDS DUE APRIL 14 2000 WITH EQUITY WARRANTS ATTACHED VIA SWISS BANK CORP EACH 10000 BOND HAS 46 EUROPEAN STYLE WARRANTS ATTACHED EXERCISABLE ON MAY 22 1996 ONLY ISSUE PRICE PAR BONDS ISSUED BY ROCHE HOLDINGS INC WARRANTS BY ROCHE FINANCIAL PRODUCTS LTD FEES 2 1/4 POINTS ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 250 MILLION OF 4 3/4 EUROBONDS DUE APRIL 25 1996 AT ISSUE PRICE 10105 VIA JP MORGAN SECURITIES REOFFERED AT 99 7/8 TO YIELD 479 A SPREAD OF 038 POINT ABOVE COMPARABLE US TREASURY NOTE GUARANTOR ABBEY NATIONAL PLC FEES 1 3/8 BANCO NACIONAL DE MEXICO SA NASSAU BRANCH 175 MILLION OF 9 1/8 EUROBONDS DUE APRIL 6 2000 AT FIXED INITIAL OFFER PRICE OF 997205 VIA BANKERS TRUST INTERNATIONAL PLC INTEREST PAYABLE SEMIANNUALLY YIELD TO MATURITY IS 918 A MARGIN OF 350 POINTS ABOVE SEVENYEAR US TREASURY INVESTORS CAN PUT BONDS ON APRIL 6 1998 AT 958402 TO YIELD 852 A MARGIN OF 330 POINTS ABOVE FIVEYEAR TREASURY NET FEES 7/8 METALLGESELLSCHAFT FINANCE BV GERMANY 300 MILLION MARKS OF 7 EUROBONDS DUE APRIL 20 2000 AT ISSUE PRICE 101 VIA DEUTSCHE BANK AG AND DRESDNER BANK AG REOFFERED AT 99 TO YIELD 719 MARGIN 078 POINT ABOVE GERMAN GOVERNMENT'S 8 3/4 BUND DUE MAY 2000 GUARANTOR METALLGESELLSCHAFT AG FEES 2 3/4 EKSPORTFINANS AS NORWAY AGENCY 100 MILLION OF 7 1/4 EUROBONDS DUE NOV 30 1998 AT ISSUE AND REOFFER PRICE 99899 VIA NATWEST CAPITAL MARKETS BONDS YIELD 7286 ANNUALLY A SPREAD OF 043 POINT ABOVE 7 1/4 UK GILT DUE 1998 FEES 025 9303230077 930323 REVIEW & OUTLOOK EDITORIAL ASIDES POLITICAL REMEDY RULED OUT HIGH ON OUR LIST OF INTERESTS IN VON ROLL THE SWISS COMPANY THAT BUILT A HAZARDOUSWASTE INCINERATOR IN EAST LIVERPOOL OHIO WAS THE LITTLE MATTER OF DUE PROCESS A FEDERAL APPEALS COURT LAST WEEK BRUSHED ASIDE THE GRANDSTANDING OF AL GORE AND THE LEGAL HARASSMENT OF GREENPEACE AND ITS NIMBY ALLIES AFTER 13 YEARS THE STATEOFTHEART PLANT CAN FINALLY GO ABOUT ITS LEGITIMATE BUSINESS UNLESS THERE'S A TV MOVIE COMING THIS MEANS THE END OF A VERY AGREEABLE RUN OF CELEBRITY FOR A HANDFUL OF LOCAL SOCIALITES OFFSET OF COURSE BY A HUNDRED OR SO WELLPAYING JOBS THAT ARE NOW SECURE FOR THEIR NEIGHBORS BOTH SIDES MAY TAKE COMFORT IN THE FACT THAT WE'RE STILL A NATION RULED BY LAWS AS BILL CLINTON HIMSELF MADE CLEAR IN AN INTERVIEW WITH A PITTSBURGH ANCHOR HE EXPLAINED WHY VON ROLL'S OPPONENTS SHOULDN'T COUNT ON HIS ADMINISTRATION TO SQUANDER ANY MORE POLITICAL CAPITAL ON THEIR LUDDITE AGENDA WELL NO THEY CAN'T EXPECT A POLITICAL REMEDY REGARDLESS OF WHAT HAPPENS IN COURT BECAUSE A COURT ORDER ABOUT EXISTING LAW COULD OVERRIDE ANYTHING WE MIGHT OTHERWISE DO 9303230076 930323 ABBEY HEALTHCARE PROPOSES TO BUY LIFETIME CORP BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL ABBEY HEALTHCARE GROUP INC SAID IT PROPOSED TO ACQUIRE LIFETIME CORP IN BOSTON A HEALTHCARE CONCERN MORE THAN THREE TIMES ABBEY'S SIZE FOR ABOUT 220 MILLION IN CASH AND ABBEY STOCK TIMOTHY AITKEN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF ABBEY HEALTHCARE IN COSTA MESA CALIF SAID THAT ABBEY HAD SENT A LETTER TO LIFETIME'S BOARD ON MARCH 15 VALUING LIFETIME AT 2350 A SHARE IN CASH AND ABBEY COMMON STOCK WHILE THE LETTER DIDN'T SPECIFICALLY BID THAT AMOUNT FOR LIFETIME MR AITKEN SAID IT WAS INTENDED AS AN OFFER FOR ABBEY'S 9369000 SHARES LIFETIME'S STOCK CLOSED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AT 17625 A SHARE UNCHANGED ABBEY SHARES CLOSED AT 18 A SHARE UP 1 LIFETIME DIDN'T RETURN TELEPHONE CALLS REQUESTING COMMENT AND MR AITKEN SAID LIFETIME HADN'T YET RESPONDED TO THE PROPOSAL A LAWYER FOR ABBEY SAID LIFETIME HAD TOLD HIM THROUGH COUNSEL THAT LIFETIME INTENDED TO RESPOND IN DUE COURSE MR AITKEN SAID THE OFFER HAD GROWN OUT OF EIGHT MONTHS OF ABBEY INITIATIVES FOR JOINT VENTURES OR A POSSIBLE ACQUISITION MR AITKEN SAID ABBEY DECIDED TO PUT THE PROPOSAL IN WRITING TO FORCE LIFETIME MANAGEMENT TO RESPOND MANY OF THE PEOPLE WHO HOLD BOTH THEIR STOCK AND OURS ARE INTERESTED IN PURE PLAY IN THE HEALTHCARE MARKET MR AITKEN SAID IN AN INTERVIEW MR AITKEN SAID THAT IF LIFETIME'S BOARD REJECTS THE OFFER WE'LL CONSIDER OUR OTHER OPTIONS AND I THINK WE HAVE OTHER OPTIONS THE ABBEY EXECUTIVE DECLINED TO BE MORE SPECIFIC ABBEY A PROVIDER OF HOME HEALTHCARE SERVICES AND PRODUCTS HAD 1992 NET INCOME OF 104 MILLION OR 131 A SHARE ON REVENUE OF 2487 MILLION LIFETIME HAD 1992 NET INCOME OF 52 MILLION OR 56 CENTS A SHARE ON REVENUE OF 8856 MILLION MR AITKEN SAID THE FINANCING FOR THE TRANSACTION WOULD BE FROM TWO HOUSEHOLDNAME FINANCIAL INSTITUTIONS ALTHOUGH HE DIDN'T IDENTIFY THEM BECAUSE THE FINANCING WOULDN'T BE AVAILABLE IF THE TRANSACTION IS HOSTILE ABBEY WON'T PURSUE THAT STRATEGY HE SAID HOSTILE TAKEOVERS DON'T WORK VERY WELL AT THE MOMENT MR AITKEN ADDED HE SAID THAT WITH THE EMPHASIS BEING PLACED ON HEALTHCARE ECONOMICS IN THE CLINTON ADMINISTRATION IT IS QUITE CLEAR THAT HOME CARE IS GOING TO BE A LARGE PART OF COST CONTAINMENT ABBEY WHICH SAID IT CURRENTLY OWNS ABOUT 1 OF THE STOCK OF LIFETIME SEES CONSIDERABLE SYNERGIES IN COMBINING THE TWO COMPANIES ACCORDING TO MR AITKEN LIFETIME SUBSIDIARY KIMBERLY QUALITY CARE A NURSING AGENCY BUSINESS SENDS NURSES TO PATIENTS' HOMES WHILE ABBEY CURRENTLY CONTRACTS FOR SUCH SERVICES FOR EXAMPLE AND ABBEY HAS ONSTAFF CLINICIANS AND RESPIRATORY THERAPISTS WHILE LIFETIME CONTRACTS FOR SERVICES IN THESE AREAS 9303230075 930323 ECONOMY BARSHEFSKY NOMINEE FOR TRADE POST HAS CLIENTS IN MEXICO CANADA JAPAN BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CHARLENE BARSHEFSKY PICKED TO BECOME THE NO 3 OFFICIAL AT THE US TRADE REPRESENTATIVE'S OFFICE IS REGISTERED AS A FOREIGN AGENT FOR FIRMS IN MEXICO CANADA AND JAPAN MS BARSHEFSKY'S ROSTER OF FOREIGN CLIENTS AS A PARTNER AT STEPTOE & JOHNSON IS SURE TO COMPLICATE HER ABILITY TO WIN SENATE CONFIRMATION AS DEPUTY TRADE REPRESENTATIVE SEVERALMEMBERS OF THE SENATE FINANCE COMMITTEE WHICH WILL REVIEW HER NOMINATION ARE AT ODDS WITH MS BARSHEFSKY'S CLIENTS IN ADDITION THE COMMERCE DEPARTMENT IS HAVING TROUBLE FILLING ITS TOP TRADE SLOT UNDERSECRETARY FOR INTERNATIONAL TRADE GOLDMAN SACHS EXECUTIVE ROBERT HORMATS TURNED DOWN THE JOB AND MASSACHUSETTS INSTITUTE OF TECHNOLOGY ECONOMIST RUDIGER DORNBUSCH BOWED OUT OF CONSIDERATION FOR FAMILY REASONS EARLY IN THE PROCESS A NUMBER OF BIGNAME TRADE CONSULTANTS WERE INTERVIEWED INCLUDING FORMER INTERNATIONAL TRADE COMMISSION CHAIRWOMAN PAULA STERN IN HOPES OF ELEVATING THE STATURE OF THE COMMERCE DEPARTMENT WHICH OVERSEES US ANTIDUMPING AND UNFAIR SUBSIDY LAWS BUT CRITICS WARN THAT IF THE DEPARTMENT TRIES TO ASSERT ITSELF AS A PLAYER ON TRADE POLICY IT WOULD INEVITABLY CLASH WITH THE TRADE REPRESENTATIVE'S OFFICE WITH MS BARSHEFSKY 42 YEARS OLD THE ADMINISTRATION RECRUITED AN INTERNATIONAL TRADE LAWYER WITH BROAD EXPERIENCE IN INTERPRETING TRADE ACCORDS AND LITIGATING TRADE CASES BUT HER FOREIGN CLIENTS WILL SET OFF ALARMS IN SOME CIRCLES IN A JANUARY 1992 FILING WITH THE JUSTICE DEPARMENT SHE SAID SHE OR HER LAW FIRM REPRESENTED NIPPON STEEL CORP OF JAPAN COECE A BROAD COALITION OF MEXICAN COMPANIES AND THE CANADIAN EMBASSY THE CANADIAN WHEAT BOARD AND THE CANADIAN FOREST INDUSTRIES COUNCIL AMONG OTHER FOREIGN CLIENTS SHE REPRESENTED THE CANADIAN SOFTWOOD LUMBER INDUSTRY DURING HIGHLY CONTENTIOUS PROCEEDINGS IN WHICH THE COMMERCE DEPARTMENT LEVIED 651 PENALTIES ON CANADIAN IMPORTS FOR UNFAIR SUBSIDIES THAT RULING IS NOW BEING APPEALED TO A CANADIANUS REVIEW PANEL AND SHE ALSO ADVISED THE MEXICAN TRADE GROUP COECE ON THE NORTH AMERICAN FREE TRADE AGREEMENT A SPOKESWOMAN FOR THE TRADE REPRESENTATIVE'S OFFICE SAID THAT WORK INVOLVED ANALYZING SECTIONS IN NAFTA TO SEE IF THEY WERE LEGALLY CONSISTENT IN A 1991 JUSTICE DEPARTMENT FILING HOWEVER MS BARSHEFSKY SAID HER ROLE WAS TO PROVIDE ADVICE TO COECE REGARDING USMEXICO FTA FREE TRADE AGREEMENT NEGOTIATIONS US TRADE OFFICIALS SAID THAT MS BARSHEFSKY HAD A NUMBER OF PROMINENT US CLIENTS AS WELL INCLUDING BOEING CO AT THE TRADE REPRESENTATIVE'S OFFICE THEY SAID SHE WOULD OVERSEE TRADE RELATIONS WITH CHINA JAPAN AND OTHER ASIA COUNTRIES AND WOULD RECUSE HERSELF FROM ANY WORK ON NAFTA OR THE SOFTWOOD LUMBER CASE I BELIEVE IT IS A DISTINCT ADVANTAGE IN HAVING REPRESENTED BOTH DOMESTIC AND FOREIGN CLIENTS SAID A SPOKESWOMAN FOR THE TRADE REPRESENTATIVE'S OFFICE THAT KIND OF WELLROUNDED REPRESENTATION GIVES YOU INSIGHT AND EXPERIENCE THAT REPRESENTING JUST ONE SIDE OR THE OTHER WOULD NOT THE NATURE AND EXTENT OF MS BARSHEFSKY'S WORK FOR NIPPON STEEL WASN'T CLEAR FROM HER REGISTRATION STATEMENT TRADE OFFICIALS SAID THAT HER LAW FIRM STEPTOE & JOHNSON REPRESENTED NIPPON BUT THAT MS BARSHEFSKY DIDN'T DO ANY WORK FOR THAT CLIENT NIPPON HAS BEEN SLAPPED WITH STIFF TARIFFS IN A PRELIMINARY DECISION BY THE COMMERCE DEPARTMENT AS PART OF A BROAD ANTIDUMPING CASE MS BARSHEFSKY HASN'T ANY ACADEMIC OR BUSINESS EXPERIENCE ON ASIA ISSUES WHICH HIGHLIGHTS AN IRONY OF THE ADMINISTRATION'S TRADE TEAM ALTHOUGH MR CLINTON HAS MADE TRADE WITH JAPAN A PRIORITY HE HAS SELECTED FEW JAPAN EXPERTS SO FAR THE COMMERCE DEPARTMENT IS TRYING TO RECRUIT GLEN FUKUSHIMA A FORMER TRADE OFFICIAL WHO NOW REPRESENTS AMERICAN TELEPHONE & TELEGRAPH CO IN JAPAN BUT IT'S UNCLEAR WHETHER HE WANTS A COMMERCE DEPARTMENT JOB SEPARATELY THE COMMERCE DEPARTMENT PLANS TO NAME KENT HUGHES PRESIDENT OF THE PRIVATESECTOR COUNCIL ON COMPETITIVENESS AS A SENIOR AIDE TO JOHN ROLLWAGEN WHO IS SLATED TO BECOME THE NO 2 OFFICIAL AT THE DEPARTMENT AND THE TREASURY DEPARTMENT EXPECTS TO NAME BRADFORD DELONG A HARVARD UNIVERSITY ECONOMIST AS DEPUTY ASSISTANT TREASURY SECRETARY FOR ECONOMIC POLICY MR DELONG IS THE COAUTHOR ALONG WITH TREASURY UNDERSECRETARYDESIGNATE LAWRENCE SUMMERS OF AN INFLUENTIAL PAPER THAT PROVIDES THE INTELLECTUAL FOUNDATION FOR PRESIDENT CLINTON'S PROPOSAL TO REINSTATE THE INVESTMENT TAX CREDIT IN ADDITION THE TREASURY SAID YESTERDAY THAT PRESIDENT CLINTON INTENDS TO NOMINATE GEORGE J WEISE 44 STAFF DIRECTOR OF THE HOUSE WAYS AND MEANS TRADE SUBCOMMITTEE TO BE COMMISSIONER OF THE US CUSTOMS SERVICE GREGORY N RACZ CONTRIBUTED TO THIS ARTICLE 9303230074 930323 WHO'S NEWS DESTEC ENERGY INC DESTEC ENERGY INC HOUSTON ENRIQUE M LARROUCAU WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS INDEPENDENT POWER COMPANY MR LARROUCAU PREVIOUSLY THE DIRECTOR OF FINANCE FOR DOW LATIN AMERICA A PART OF DOW CHEMICAL CO SUCCEEDS DIANE K MOTT WHO RESIGNED FROM DESTEC FOR PERSONAL REASONS 9303230073 930323 BUSINESS BRIEF MAI SYSTEMS CORP EUROPEAN UNITS ARE SOLD TO SOME FORMER LENDERS MAI SYSTEMS CORP SAID IT SOLD ITS EUROPEAN SUBSIDIARIES TO SOME FORMER MAI LENDERS IN EXCHANGE FOR THE LENDERS' RELEASE OF MAI FROM 84 MILLION IN INDEBTEDNESS THE NEW OWNERS OF THE EUROPEAN SUBSIDIARIES IDENTIFIED ONLY AS US AND CANADIAN BANKS WILL DIRECT THE OPERATIONS OF THE EUROPEAN SUBSIDIARIES THROUGH A NEWLY FORMED COMPANY APPLICATION SYSTEMS INC MAI SYSTEMS A TUSTIN CALIF PROVIDER OF COMPUTER SERVICES SAID IT WILL RECOGNIZE A GAIN OF ABOUT 65 MILLION IN CONNECTION WITH THE TRANSACTION THE COMPANY SAID IT WILL NOW CONSIST OF FOUR INDEPENDENT BUSINESS UNITS WITH AGGREGATE ANNUAL REVENUES OF ABOUT 103 MILLION AND 11000 CUSTOMERS OPERATING PRIMARILY IN NORTH AND SOUTH AMERICA EARLIER AN AGREEMENT TO SELL THE GERMAN AUSTRIAN AND SWISS UNITS OF MAI TO DEUTSCHE CANDOVER PLC A EUROPEAN MANAGEMENT BUYOUT FIRM FOR ABOUT 100 MILLION FELL THROUGH WHEN DEUTSCHE CANDOVER WITHDREW 9303230072 930323 BUSINESS BRIEF FLUOR CORP FLUOR DANIEL UNIT RECEIVES PACT TOTALING 15 BILLION FLUOR CORP SAID ITS FLUOR DANIEL UNIT RECEIVED A 15 BILLION CONTRACT FROM A ROYAL/DUTCH SHELL GROUP UNIT TO RENOVATE ITS PERNIS REFINERY IN ROTTERDAM THE NETHERLANDS ABOUT 600 MILLION OF THE CONTRACT WAS INCLUDED IN FLUOR'S FIRSTQUARTER BACKLOG AND THE REMAINDER WILL BE INCLUDED IN THE SECOND QUARTER FLUOR SAID FLUOR DANIEL BV OF HAARLEM THE NETHERLANDS IS SERVING AS MANAGING CONTRACTOR FOR THE PROJECT AND WILL ALSO PROVIDE DESIGN SERVICES FOR THE HEAVY OIL GASIFICATION UNIT THE AWARD OF THE CONTRACT BY SHELL NEDERLAND RAFFINADERIJ INITIATES THE START OF DETAIL DESIGN WORK WHICH IS THE PHASE PRECEDING CONSTRUCTION ACTUAL CONSTRUCTION IS SET TO BEGIN IN THE SPRING OF 1994 WITH COMPLETION IN 1997 THE PROJECT IS EXPECTED TO EMPLOY MORE THAN 2500 FLUOR AND SUBCONTRACTOR WORKERS FLUOR BASED IN SAN FRANCISCO IS AN INTERNATIONAL ENGINEERING CONSTRUCTION MAINTENANCE AND TECHNICAL SERVICES COMPANY 9303230071 930323 BUSINESS BRIEF WARNERLAMBERT CO FIRM ACQUIRES OPERATIONS OF WILKINSON SWORD LTD WARNERLAMBERT CO SAID IT ACQUIRED THE EUROPEAN US AND CANADIAN OPERATIONS OF WILKINSON SWORD LTD THE MAKER OF RAZORS AND BLADES FOR 142 MILLION WARNERLAMBERT WHICH ALREADY OWNS THE SCHICK BRAND SAID THE WILKINSON PURCHASE WILL HELP CREATE A 500 MILLION GLOBAL WET SHAVE BUSINESS FOR THE COMPANY WILKINSON A UNIT OF EEMLAND HOLDINGS NV OF THE NETHERLANDS HAD 1992 SALES OF 190 MILLION WARNERLAMBERT OF MORRIS PLAINS NJ SAID THE ACQUISITION WILL HELP THE COMPANY SELL ITS PERSONALCARE PRODUCTS IN EUROPE THROUGH WILKINSON'S DISTRIBUTION CHANNELS A SPOKESWOMAN SAID WILKINSON SWORD HAS A 40 MARKET SHARE OF RAZORS IN GERMANY AND A 17 SHARE IN BRITAIN WARNERLAMBERT'S PURCHASE OF THE REMAINING WILKINSON SWORD OPERATIONS WAS RUMORED EARLIER THIS MONTH IN THE INVESTMENT COMMUNITY GILLETTE CO HAD BOUGHT WILKINSON'S OPERATIONS OUTSIDE NORTH AMERICA AND EUROPE A FEW YEARS AGO WARNERLAMBERT'S PURCHASE INCLUDES EASTERN EUROPEAN OPERATIONS 9303230070 930323 BUSINESS BRIEF DOSKOCIL COS JOSEPH LITTLEJOHN AFFILIATE BUYS 2 MILLION SHARES OF FIRM DOSKOCIL COS SAID IT COMPLETED THE SALE OF TWO MILLION NEWLY ISSUED SHARES OF COMMON STOCK AT 15 EACH OR 25 OF THE TOTAL OUTSTANDING TO AN AFFILIATE OF NEW YORK INVESTMENT FIRM JOSEPH LITTLEJOHN & LEVY THE HUTCHISON KANSAS MEAT PROCESSOR SAID IT USED THE NET PROCEEDS TO REDUCE ITS LONGTERM DEBT AS REPORTED JOSEPH LITTLEJOHN SAID ITS JOSEPH LITTLEJOHN & LEVY FUND LP MAY INCREASE ITS HOLDINGS TO 33 BY PURCHASING ADDITIONAL SHARES IN OPENMARKET TRANSACTIONS FROM TIME TO TIME DOSKOCIL ALSO SAID SEVEN PEOPLE SELECTED BY JOSEPH LITTLEJOHN HAVE BEEN ADDED TO THE BOARD EXPANDING THE NUMBER OF DIRECTORS TO 15 THEODORE A MYERS CHIEF FINANCIAL OFFICER SAID TWO NEW DIRECTORS THOMAS W ARENZ 35 AND MICHAEL I KLEIN 28 BOTH OF JOSEPH LITTELJOHN ARE STANDINS WHO WILL SERVE UNTIL THE JUNE ANNUAL MEETING ADDING THAT DOSKOCIL WANTS TO BRING IN FOOD INDUSTRY PEOPLE MR MYERS SAID THE OTHER FIVE NEW DIRECTORS ARE EXPECTED TO BE NOMINATED TO REMAIN IN FUTURE YEARS THESE INCLUDE THEODORE AMMON 43 A PRIVATE INVESTOR AND JOSEPH LITTLEJOHN PARTNERS PETER A JOSEPH 40 ANGUS C LITTLEJOHN JR 42 PAUL S LEVY 45 AND YVONNE V CLIFF 32 9303230069 930323 BUSINESS BRIEF PHILIP MORRIS COS STAKE IN LITHUANIAN CONCERN TO BE BOUGHT FOR 40 MILLION PHILIP MORRIS COS NEW YORK AGREED TO BUY 652 OF LITHUANIA'S KLAIPEDA TOBACCO CO FOR AN INVESTMENT OF 40 MILLION INCLUDING 30 MILLION TO BE USED TO MODERNIZE THE LITHUANIAN COMPANY'S OPERATIONS AND BUILD A NEW FACTORY KLAIPEDA OWNED BY THE LITHUANIAN CENTRAL PRIVATIZATION COMMITTEE WILL MAKE MARLBORO BOND STREET AND OTHER CIGARETTES FOR ITS LOCAL MARKET THE INVESTMENT IS THE LATEST IN THE TOBACCO INDUSTRY'S AGGRESSIVE PUSH INTO EASTERN EUROPE PHILIP MORRIS IS ALREADY OPERATING IN EASTERN GERMANY HUNGARY THE FORMER CZECHOSLOVAKIA AND RUSSIA THE REGION'S TOBACCO MARKET THE SECOND LARGEST OUTSIDE CHINA CONSUMES ABOUT 700 BILLION CIGARETTES A YEAR 9303230068 930323 MARKETING BRIEF HOUGHTON MIFFLIN CO RESULTS FOR 1993 EXPECTED TO GROW FROM LAST YEAR HOUGHTON MIFFLIN CO CITING STRONG SALES OF TEXTBOOKS IN MOST REGIONS OF THE US SAID IT EXPECTS TO REPORT 1993 RESULTS SIGNIFICANTLY BETTER THAN 1992 OPERATING PROFIT OF 268 MILLION OR 191 A SHARE BEFORE SPECIAL ITEMS THE NEWS WAS IN LINE WITH INDUSTRY EXPECTATIONS AND ANALYSTS SAID THAT HOUGHTON'S ANNOUNCEMENT MAY HAVE BEEN DESIGNED TO CALM INVESTOR CONCERNS ABOUT A SLIP IN MARKET SHARE IN TEXAS WHERE SCHOOLS WILL BUY 120 MILLION TO 150 MILLION IN READING TEXTBOOKS THIS YEAR THERE'S EVERY INDICATION THAT THEY ARE STRUGGLING IN TEXAS AND ARE PROBABLY THE NO 3 BOOK SELLER WHEN IN RECENT YEARS THEY HAVE BEEN NO 1 SAYS KEVIN GRUNEICH ANALYST AT FIRST BOSTON CORP HOUGHTON SAID ITS TEXTBOOKS FOR THE MATHEMATICS SOCIAL STUDIES AND ENGLISH DISCIPLINES ARE COMPETING WELL IN OTHER PARTS OF THE COUNTRY IN 1992 HOUGHTON HAD NET INCOME OF 44 MILLION OR 31 CENTS A SHARE AFTER A 147 MILLION CHARGE FOR ACCOUNTING CHANGES SALES WERE 4547 MILLION IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY HOUGHTON MIFFLIN CLOSED AT 3875 UP 25 CENTS 9303230067 930323 BUSINESS BRIEF A&W BRANDS INC RESULTS OF 1ST PERIOD YEAR TO TRAIL ANALYST ESTIMATES A&W BRANDS INC SAID IT EXPECTS ITS FIRSTQUARTER AND FULLYEAR RESULTS TO FALL BELOW ANALYSTS' ESTIMATES THE WHITE PLAINS NY SOFTDRINKS COMPANY ALSO RAISED ITS QUARTERLY COMMON STOCK DIVIDEND TO EIGHT CENTS A SHARE FROM 73 CENTS PAYABLE APRIL 15 TO STOCK OF RECORD APRIL 1 THE PRIOR QUARTERLY DIVIDEND REFLECTS A 3FOR2 STOCK SPLIT FEB 16 THE ANNOUNCEMENT OF LOWER RESULTS SENT THE PRICE OF A&W'S STOCK SKIDDING 2125 TO 19375 YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING A&W SAID IT EXPECTS TO POST NET INCOME OF 28 CENTS A SHARE ALSO ADJUSTED FOR THE STOCK SPLIT IN THE FIRST QUARTER THE COMPANY SAID ANALYSTS HAD ESTIMATED A PROFIT OF 31 CENTS A SHARE 9303230066 930323 LETTERS TO THE EDITOR SOME STEEL PROTECTION WAS WARRANTED IN '80S YOUR ARTICLE DESCRIBING THE FINDINGS OF OUR RECENT REPORT ON TRADE RESTRICTIONS IN THE STEEL INDUSTRY STEEL IMPORT CURBS COST US ECONOMY STUDY SAYS FEB 11 FAILED IN SOME EDITIONS TO MENTION THE MAIN CONCLUSION OF THE PAPER THAT TRADE PROTECTION FOR THE STEEL INDUSTRY WAS WARRANTED IN THE 1980S TO OFFSET THE NEGATIVE IMPACT OF THE OVERVALUED DOLLAR FOREIGN SUBSIDIES AND THE DEEP RECESSION OF 1982 WE SHOW THAT DUE TO THE HIGH CAPITAL COSTS AND RAPIDLY CHANGING TECHNOLOGY THAT CHARACTERIZE THE STEEL INDUSTRY A TEMPORARY REDUCTION IN OUTPUT CAN HAVE LONGTERM CONSEQUENCES ESPECIALLY ON EMPLOYMENT WE ALSO FIND THAT IN THIS INSTANCE THE STEEL INDUSTRY DID USE THE PERIOD OF TRADE RESTRICTIONS TO INCREASE INVESTMENT AND HENCE RAISE PRODUCTIVITY WHILE WE DO ARGUE THAT THE VOLUNTARY RESTRAINT AGREEMENTS VRAS WERE A RELATIVELY INEFFICIENT FORM OF TRADE PROTECTION WE GO ON TO ADVOCATE THE USE OF TARIFFS OR AUCTION QUOTAS INSTEAD WE SHOW THAT IF THE GOVERNMENT HAD EMPLOYED A REVENUEGENERATING FORM OF TRADE RESTRICTION INSTEAD OF THE VRAS THE NATION AS A WHOLE WOULD HAVE REAPED NET BENEFITS ONCE THE GAINS IN LABOR INCOME ARE TAKEN INTO ACCOUNT 9303230065 930323 BUSINESS BRIEF ENVIROSOURCE INC FREEMAN SPOGLI TO GAIN CONTROLLING STAKE IN FIRM ENVIROSOURCE INC SAID LOS ANGELES INVESTMENT COMPANY FREEMAN SPOGLI & CO WILL GAIN CONTROL OF ENVIROSOURCE THROUGH A 50 MILLION EQUITY INVESTMENT AND PURCHASE OF ENVIROSOURCE SECURITIES FROM ANOTHER INVESTOR ENVIROSOURCE AN ENVIRONMENTAL SERVICES COMPANY IN STAMFORD CONN WITH SALES OF 224 MILLION IN 1991 SAID THE CASH WILL IMPROVE ITS BALANCE SHEET AND REDUCE DEBT THE TRANSACTIONS WILL GIVE FREEMAN SPOGLI A 55 STAKE IN THE COMPANY'S COMMON STOCK SHARES OUTSTANDING WILL INCREASE TO 40 MILLION FROM 236 MILLION FREEMAN SPOGLI HAS INTERESTS IN A WIDE VARIETY OF COMPANIES INCLUDING SUPERMARKETS AND A 24 STAKE IN CREDIT RATING COMPANY DUFF & PHELPS CORP FREEMAN SPOGLI IS ACQUIRING SUBSTANTIALLY ALL OF THE ENVIROSOURCE SECURITIES HELD BY DYSONKISSNERMORAN CORP OF NEW YORK FOR 326 MILLION 9303230064 930323 BUSINESS BRIEF AMERICAN EXPLORATION CO FIRM AND HALLWOOD ENERGY TO GET SHARE OF JUDGMENT AMERICAN EXPLORATION CO OF HOUSTON AND HALLWOOD ENERGY PARTNERS LP OF DENVER SAID THEY WILL EACH RECEIVE ABOUT 30 PLUS INTEREST OF A 225 MILLION JUDGMENT AGAINST ARKLA INC THE JUDGMENT UPHELD IN FEDERAL APPEALS COURT RELATES TO A FEBRUARY 1991 AWARD OF DAMAGES BY A U S DISTRICT COURT JURY FOR BREACH OF CONTRACT BY LOUISIANA INTRASTATE GAS CORP A UNIT OF ARKLA THE DISPUTE INVOLVED PRICES PAID FOR NATURAL GAS PRODUCTION IN A FIELD IN TERREBONE PARISH LA UNDER A LONGTERM GAS CONTRACT ENERGY CONSULTANTS OF HOUSTON A PRIVATELY HELD COMPANY WAS AWARDED THE REMAINDER OF THE JUDGMENT AMERICAN EXPLORATION EXPECTS ABOUT A 13CENTASHARE ADDITION TO 1993 NET INCOME IF THE MONEY IS COLLECTED THIS YEAR SAID A COMPANY SPOKESMAN ARKLA WHICH COULD REQUEST A REHEARING IS CONSIDERING ITS OPTIONS SAID AN ARKLA SPOKESMAN 9303230063 930323 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 89 DAYS 310 90 TO 119 DAYS 312 120 TO 179 DAYS 315 180 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 315 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 265 TWO MONTHS 269 THREE MONTHS 279 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 310 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 303 90 DAYS 305 120 DAYS 308 150 DAYS 309 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 5/16 SIX MONTHS 3 5/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 9 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY MARCH 22 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 294 13 WEEKS 305 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 727 60 DAYS 736 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 725 60 DAYS 735 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 280 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303230062 930323 INTERNATIONAL BRIEF GPA GROUP PLC IRISH AGENCY OFFERS TO INVEST IN AIRCRAFT LEASING COMPANY AN IRISH GOVERNMENT DEVELOPMENT AGENCY IN THE HOMETOWN OF GPA GROUP PLC IS OFFERING TO INVEST AS MUCH AS 18 MILLION IN THE AIRCRAFT LEASING COMPANY THE SHANNON FREE AIRPORT DEVELOPMENT CO SAID IT ACCEPTED AN OFFER TO TAKE UP THE RIGHTS TO INVEST IN GPA HELD BY AER LINGUS THE STATEOWNED AIRLINE THE AGENCY DECLINED TO COMMENT FURTHER BUT PEOPLE FAMILIAR WITH THE SITUATION SAID AER LINGUS WAS OFFERED OPTIONS TO INVEST BETWEEN 16 MILLION AND 18 MILLION IN GPA AER LINGUS OWNS AN 83 STAKE IN GPA WHICH IS ASKING CURRENT SHAREHOLDERS TO INJECT A TOTAL OF 200 MILLION IN FRESH EQUITY THROUGH A NEW SHARE OFFERING BUT AER LINGUS DOESN'T HAVE THE CASH THE AIRLINE IS ITSELF SEEKING 400 MILLION IRISH POUNDS 5929 MILLION IN FRESH EQUITY FROM THE STATE AND MAY SLASH THOUSANDS OF JOBS IN ADDITION IT HAS LONG BEEN RUMORED TO BE EAGER TO SELL ITS GPA SHARES AER LINGUS DECLINED TO COMMENT GPA ALSO DECLINED TO COMMENT 9303230061 930323 US OFFICIALS FIND NATIONAL CITY CORP BROKE TYING' LAWS BY KENNETH H BACON AND JOHN CONNOR STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON FEDERAL BANKING REGULATORS HAVE FOUND THAT NATIONAL CITY CORP ILLEGALLY ATTEMPTED TO REQUIRE A CUSTOMER SEEKING A LETTER OF CREDIT TO DISTRIBUTE BONDS THROUGH AN AFFILIATE OF THE CLEVELAND BANK ACCORDING TO US OFFICIALS NATIONAL CITY WHICH WAS THE NATION'S 25THLARGEST BANK HOLDING COMPANY AT THE END OF THE LAST YEAR HAS AGREED TO STOP THE ALLEGED PRACTICES AN OFFICIAL AT THE BANK WOULDN'T COMMENT THE ENFORCEMENT ACTION BY THE COMPTROLLER OF THE CURRENCY AND THE FEDERAL RESERVE BOARD IS A VICTORY FOR THE SECURITIES INDUSTRY WHICH HAS FREQUENTLY CHARGED THAT BANKS USE THEIR ECONOMIC MUSCLE TO FORCE BORROWERS AND OTHER CUSTOMERS TO SELL SECURITIES THROUGH BANK AFFILIATES IT IS THE FIRST TIME FEDERAL REGULATORS HAVE MOVED AGAINST AN ALLEGED VIOLATION OF A 1972 LAW THAT PROHIBITS BANKS FROM LINKING BANKING AND SECURITIES SERVICES THE NATIONAL CITY INCIDENT WAS FIRST BROUGHT TO THE ATTENTION OF REGULATORS BY MORGAN STANLEY & CO THE WALL STREET INVESTMENT BANKING FIRM HAS BEEN PARTICULARLY AGGRESSIVE IN PUSHING FOR STRICT ENFORCEMENT OF TYING LAWS THE ENFORCEMENT ACTION AGAINST NATIONAL CITY IS EXPECTED TO BE ANNOUNCED SOON LATE LAST WEEK THE FED SENT THE COMPANY AN ORDER STATING THE CHARGES AND SPECIFYING THE TERMS OF A SETTLEMENT IT ISN'T CLEAR HOW LONG IT WILL TAKE NATIONAL CITY EXECUTIVES AND THEIR LAWYERS TO REVIEW AND SIGN THE SETTLEMENT AGREEMENT WHEN THE FED LAUNCHED ITS INVESTIGATION LAST YEAR NATIONAL CITY OFFICIALS SAID THEY WERE COOPERATING FULLY WITH THE GOVERNMENT ANNOUNCEMENT OF THE DISCIPLINARY ACTION IS CERTAIN TO EXCITE MEMBERS OF CONGRESS WHO WORRY THAT BANK HOLDING COMPANIES ARE IN A POSITION TO INTIMIDATE CUSTOMERS WHEN THEY COMBINE TRADITIONAL BANKING SERVICES WITH SECURITIES UNDERWRITING AND OTHER INVESTMENT ACTIVITIES REP JOHN DINGELL D MICH AND OTHER MEMBERS OF THE HOUSE ENERGY AND COMMERCE COMMITTEE THAT HE IS CHAIRMAN OF HAVE TAKEN THE LEAD IN PRESSING REGULATORS TO INVESTIGATE CHARGES OF TYING HOWEVER REGULATORS SAY THAT THE NATIONAL CITY CASE IS HIGHLY UNUSUAL AND NOT INDICATIVE OF A PATTERN OF ILLEGAL TYING ACTIVITY AT THE CLEVELAND BANK OR ELSEWHERE LAST YEAR MORGAN STANLEY SENT THE FED WHICH REGULATES BANK HOLDING COMPANIES A LETTER DESIGNED TO AMPLIFY THE WIDESPREAD PERCEPTION IN THE INVESTMENT BANKING COMMUNITY THAT CERTAIN BANKING ORGANIZATIONS AND THEIR SECURITIES AFFILIATES ARE IMPROPERLY TYING INVESTMENT BANKING SERVICES TO COMMERCIAL BANKING SERVICES THE NATIONAL CITY CASE INVOLVES A POTENTIAL PRIVATE PLACEMENT OF TAXEXEMPT BONDS A BUSINESS LONG OPEN TO BANKS IN 1987 THE FED GAVE BANKS LIMITED AUTHORITY TO UNDERWRITE CORPORATE SECURITIES AS WELL ONLY A FEW BANKS HAVE ENTERED THIS BUSINESS BUT TWO OF THEM J P MORGAN & CO AND BANKERS TRUST NEW YORK CORP ARE AMONG THE NATION'S LARGEST AND MOST AGGRESSIVE BANKS BROKERAGE FIRMS HAVE BEEN LOOKING FOR WAYS TO CONVINCE CONGRESS THAT IT IS UNFAIR AND UNSAFE TO ALLOW BANKS INTO THE SECURITIES BUSINESS ONE PART OF WALL STREET'S STRATEGY HAS BEEN TO ALLEGE THAT BANKS ARE TYING COMMERCIAL AND INVESTMENT BANKING SERVICES IN THEIR EFFORT TO WIN MORE CORPORATE UNDERWRITING HOWEVER THE SECURITIES INDUSTRY HASN'T BEEN ABLE TO PROVIDE REGULATORS WITH STRONG EVIDENCE OF ATTEMPTED TYING INVOLVING CORPORATE SECURITIES STILL REGULATORS ARE CONTINUING TO EXAMINE SEVERAL BANKS FOR EVIDENCE OF SUCH TYING 9303230060 930323 BUSINESS BRIEF GEORGIAPACIFIC CORP SALE OF A BUSINESS TO GAF TO RESULT IN 24 MILLION GAIN GEORGIAPACIFIC CORP ATLANTA SAID IT AGREED TO SELL ITS ROOFING MANUFACTURING BUSINESS TO A SUBSIDIARY OF GAF CORP A SPECIALTY CHEMICAL AND BUILDING MATERIALS CONCERN BASED IN WAYNE NJ TERMS WEREN'T DISCLOSED GEORGIAPACIFIC A FOREST PRODUCTS COMPANY SAID IT EXPECTS THE SALE TO RESULT IN AFTERTAX CASH PROCEEDS OF ABOUT 45 MILLION AND A GAIN OF ABOUT 24 MILLION OR 28 CENTS A SHARE THE COMPANY SAID THE GAIN WILL BE RECORDED IN THE QUARTER IN WHICH THE TRANSACTION IS COMPLETED GEORGIAPACIFIC PUT ITS ROOFING MANUFACTURING BUSINESS UP FOR SALE LAST NOVEMBER AFTER DECIDING THAT THE OPERATION DIDN'T FIT INTO ITS LONGTERM PLANS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GEORGIAPACIFIC CLOSED AT 63 A SHARE UNCHANGED 9303230059 930323 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MARCH 10 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9303230058 930323 POLITICS & POLICY CLINTON LOOKS TO STAKE OUT CLAIM FOR SUPPORT OF YOUNG NONIDEOLOGICAL HIGHTECH OFFICIALS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS OUT TO CLAIM THE TECHIES AS HIS OWN INSPIRED BY SUPPORT THEY GOT IN LAST FALL'S CAMPAIGN MR CLINTON AND HIS DEMOCRATIC PARTY ARE TRYING TO CARVE OUT AND SECURE A DISTINCT NEW BUSINESS CONSTITUENCY YOUNG NONIDEOLOGICAL EXECUTIVES AND ENTREPRENEURS FROM HIGHTECH COMPANIES CLINTON TAX POLICY INVESTMENT PLANS CULTURAL APPEALS EVEN THE LANGUAGE USED BY THE PRESIDENT ARE DESIGNED TO PULL THESE NEWWAVE BUSINESS LEADERS INTO THE CLINTON FOLD NOW THAT HE'S THE PRESIDENT AND MORE PEOPLE OUT HERE ARE GETTING TO KNOW HIM THEY'RE EXTREMELY IMPRESSED AT HIS ABILITY TO KNOW THINGS AT THEIR LEVEL SAYS DAVE BARRAM A VICE PRESIDENT OF APPLE COMPUTER INC WHO HAS BEEN INSTRUMENTAL IN ORGANIZING SUPPORT FOR MR CLINTON IN CALIFORNIA'S BIG HIGHTECH COMMUNITY THE PHRASE I USE IS THAT HE REALLY GETS THE ESSENCE OF THE KEY ISSUES WE CARE ABOUT ABOVE ALL MR CLINTON IS MAKING INROADS AMONG HIGHTECH LEADERS WHO HAVE CONCLUDED THAT THE 1990S WILL REQUIRE MORE COOPERATION BETWEEN BUSINESS AND GOVERNMENT TO KEEP THE US COMPETITIVE BUT THE PRESIDENT ALSO IS DISCOVERING THAT IT WON'T BE EASY TO KEEP SUCH CONVERTS UNDER HIS WING THAT CAN BE SEEN IN A TALK WITH DAVID COLLISON A COMPUTER SOFTWARE DEVELOPER WHO PERSONIFIES THE KIND OF TECHNOBUSINESSMAN THE DEMOCRATS HAVE GRABBED AND HOPE TO KEEP MR COLLISON IS VICE PRESIDENT OF CREATIVE SOFTWARE SERVICES INC A SMALL NEW FIRM IN CEDAR RAPIDS IOWA A SELFPROCLAIMED CLINTON REPUBLICAN HE HAD VOTED FOR BOTH RONALD REAGAN AND GEORGE BUSH BEFORE TURNING TO MR CLINTON LAST FALL HE ABANDONED THE REPUBLICANS BECAUSE OF A CONVICTION THEY HAD TRASHED THE ECONOMY BY LETTING DEFICITS RUN WILD AND HE WAS DRAWN TO MR CLINTON AND VICE PRESIDENT AL GORE OUT OF A SENSE THAT AS FORTYSOMETHING LEADERS THEY UNDERSTAND THE POSSIBILITIES IN US TECHNOLOGY IN A WAY OLDER POLITICIANS DIDN'T YET THE 28YEAROLD MR COLLISON ALREADY IS A LITTLE RESTIVE WITH THE PRESIDENT HE HAS JUST POSTED AN OPEN LETTER TO MR CLINTON ON A COMPUTER BULLETIN BOARD SERVICE TO EXPRESS CONCERNS THAT I MY PARTNERS AND MANY OF MY FRIENDS HAVE HE IMPLORED THE PRESIDENT TO CUT DEEPER INTO THE FEDERAL GOVERNMENT PROCLAIMING IT IS TIME THAT THE US GOVERNMENT LEARNED WHAT DOWNSIZING MEANS THE WHITE HOUSE ALSO HAS BEEN DISMAYED TO FIND THAT HIGHTECH INDUSTRIES AND VENTURE CAPITALISTS ARE DISAPPOINTED AT THE LIMITED SIZE AND SCOPE OF MR CLINTON'S PROPOSED CAPITALGAINS TAX BREAK THAT TAX BREAK IS DESIGNED TO HELP PRECISELY THE KINDS OF ENTREPENEURS THAT BREED IN CALIFORNIA'S SILICON VALLEY MOREOVER IT'S FAR FROM CLEAR THAT SUPPORT FOR MR CLINTON WILL TRANSLATE INTO SUPPORT FOR THE DEMOCRATIC PARTY MORE BROADLY BY NATURE MANY IN THE HIGHTECH WORLD ARE INDEPENDENTMINDED AND SUSPICIOUS OF BIG POWER CENTERS INCLUDING THE FEDERAL GOVERNMENT FOR NOW SUCH BUSINESS PEOPLE WANT TO WORK WITH MR CLINTON AND GET HELP FROM HIM BUT THEY REMAIN SUSPICIOUS OF DEMOCRATS' TENDENCY TO EXPAND GOVERNMENT AND BUILD TRADE BARRIERS I DON'T HAVE ANY SENSE THAT THESE GUYS ARE MOVING TOWARD BEING DEMOCRATS ACKNOWLEDGES APPLE'S MR BARRAM IF HIGHTECH EXECUTIVES SENSE OVER TIME THAT MR CLINTON IS MOVING THE DEMOCRATIC PARTY TOWARD THE POLITICAL CENTER HE SAYS THEN I THINK SOME OF THEM MIGHT EVEN BECOME DEMOCRATS I DON'T THINK THAT'S A HIGH LIKELIHOOD FOR A WHILE IN FACT THOUGH THEY MAY BACK MR CLINTON FOR NOW THE INDEPENDENTMINDED TECHIES ALSO ARE DRAWN TOWARD ROSS PEROT AND MIGHT FALL TOWARD SUCH A MAVERICK FIGURE IF THEY SOUR ON MR CLINTON AT A MEETING OF TOP EXECUTIVES IN THE PERSONAL COMPUTER INDUSTRY LAST FALL FOR INSTANCE 46 OF THOSE SURVEYED SAID THEY FAVORED MR CLINTON FOR PRESIDENT BUT 29 FAVORED MR PEROT COMPARED WITH JUST 25 FOR MR BUSH STILL MR CLINTON'S ADVISERS SAY THEIR AIM IS TO CARVE OUT A PERMANENT NICHE FOR DEMOCRATS NOT ONLY AMONG HIGHTECH INDUSTRIES BUT ALSO IN OTHER MORE TRADITIONAL BUSINESSES NOW LONGING FOR A MORE ACTIVIST GOVERNMENT I DON'T THINK IT'S TEMPORARY SAYS STANLEY GREENBERG MR CLINTON'S POLLSTER AND A TOP POLITICAL ADVISER I THINK THERE ARE SECTORS THAT BELIEVE A CHANGING WORLD ECONOMY REQUIRES A NEW RELATIONSHIP BETWEEN BUSINESS AND GOVERNMENT INDEED CLINTON ADVISERS SAY THAT HILLARY RODHAM CLINTON WAS MAKING BOTH A POLITICAL AND A POLICY STATEMENT WHEN SHE SOUGHT OUT APPLE COMPUTER CHAIRMAN JOHN SCULLEY TO SIT BESIDE HER AT HER HUSBAND'S NATIONALLY TELEVISED ADDRESS UNVEILING HIS ECONOMIC PROGRAM THAT PROGRAM IS STUDDED WITH PROPOSALS DESIGNED TO BOOST THE HIGHTECH SECTORS OF THE ECONOMY FOR STARTERS MR CLINTON HAS PROPOSED SPENDING 17 BILLION OVER FOUR YEARS ON TECHNOLOGY PROGRAMS INCLUDING MONEY FOR A CLOSELY WATCHED PROJECT TO DEVELOP A NATIONAL COMPUTER NETWORK AND FUNDS FOR A SERIES OF PROJECTS TO DEVELOP TECHNOLOGIES USEFUL FOR BUSINESS THE ADMINISTRATION ALSO HAS PROPOSED EXTENDING THE RESEARCH AND DEVELOPMENT TAX CREDIT AS WELL AS THE CAPITAL GAINS TAX BREAK FOR SMALL BUSINESSES WHATEVER THEIR TECHNICAL MERITS SUCH PROPOSALS ALSO COULD HAVE THE CONVENIENT EFFECT OF BUYING THE LOYALTY OF HIGHTECH COMPANIES AND ENTREPENEURS INDEED JUST FOUR DAYS AFTER UNVEILING HIS ECONOMIC PROGRAM MR CLINTON MADE A BEELINE FOR SILICON VALLEY TO MEET WITH EXECUTIVES AND HIGHTECH WORKERS THERE AND UNVEIL A POLICY AIMED AT CREATING A PARTNERSHIP WITH THE PRIVATE SECTOR TO GENERATE MORE OF THESE KINDS OF COMPANIES AT A QUESTIONANDANSWER SESSION AT A SILICON VALLEY FACTORY MR CLINTON AND MR GORE ILLUSTRATED THEIR ABILITY TO CONNECT WITH HIGHTECH CULTURE IN A WAY PRESIDENTS BUSH AND REAGAN NEVER DID THEY TALKED CASUALLY OF SOFTWARE PACKAGES HIGHPERFORMANCE COMPUTING AND THE APPLICATION OF SCIENTIFIC VISUALIZATION TO APPLIED ACADEMICS IF THE PRESIDENT CAN MANAGE TO CEMENT FOR THE DEMOCRATS A CONSTITUENCY WITHIN THE TRADITIONALLY REPUBLICAN BUSINESS COMMUNITY HE WILL HAVE TAKEN A SIZABLE STEP TOWARD HIS DREAM OF BUILDING A PERMANENT NEW DEMOCRATIC POLITICAL COALITION IT'S AN ATTEMPT FOR A FUNDAMENTAL POLITICAL REALIGNMENT AND THIS IS AN IMPORTANT PART OF IT SAYS BILL BRADLEY A CALIFORNIA POLITICAL ANALYST WHO HAS FOLLOWED THE COURTSHIP BETWEEN MR CLINTON AND HIS STATE'S HIGHTECH BUSINESS LEADERS ALREADY THE MUTUAL ATTRACTION BETWEEN MR CLINTON AND THE HIGHTECH BUSINESS WORLD HAS TRANSLATED INTO SOME SIGNIFICANT FINANCIAL REWARDS FOR DEMOCRATS A RECENTLY COMPILED LIST BY COMMON CAUSE A NONPARTISAN PUBLIC INTEREST GROUP INDICATES THAT SEVEN INDIVIDUALS GAVE MORE THAN 200000 IN SOFT OR UNRESTRICTED MONEY TO THE DEMOCRATIC PARTY IN THE MOST RECENT ELECTION CYCLE TWO OF THE SEVEN ARE FROM THE COMPUTER SOFTWARE BUSINESS PETER NORTON FAMOUS FOR HIS UBIQUITOUS NORTON UTILITIES PROGRAM FOR PERSONAL COMPUTERS AND JOHN MOORES FOUNDER AND FORMER CHAIRMAN OF BMC SOFTWARE INC 9303230057 930323 CORRECTIONS & AMPLIFICATIONS REVISED SHORT INTEREST TOTALS FOR EIGHT COMPANIES LISTED ON THE NEW YORK STOCK EXCHANGE WERE SUPPLIED YESTERDAY BY THE BIG BOARD THE COMPANIES AND CORRECTED FIGURES FOR MIDMARCH ARE MAGMA COPPER CO 470035 SHARES UP FROM 369325 SHARES ORIGINALLY LISTED IN YESTERDAY'S EDITION STORAGE TECHNOLOGY CORP 2391327 SHARES UP FROM 1443379 SHARES TEXTRON INC 284575 DOWN FROM 1984575 TYCO LABORATORIES INC 1131627 DOWN FROM 5103627 UAL CORP 937314 DOWN FROM 2637314 VARIAN ASSOCIATES INC 169991 UP FROM 43841 WARNACO GROUP INC 731656 UP FROM 511656 WALMART STORES INC 16296280 UP FROM 12749113 TOTAL SHORT INTEREST TO MIDMARCH WAS A REVISED 991162510 SHARES AN INCREASE OF 31337388 SHARES FROM MIDFEBRUARY GILLETTE CO HAS AGREED TO ACQUIRE PARKER PEN HOLDINGS LTD FOR 285 MILLION 4249 MILLION IN CASH IN AN ARTICLE YESTERDAY ABOUT THE US JUSTICE DEPARTMENT OPPOSING THE TAKEOVER ON ANTITRUST GROUNDS IT WAS INCORRECTLY STATED THAT THE PURCHASE WOULD BE THROUGH A STOCK SWAP 9303230056 930323 IMRE DRUG APPROVAL IS DELAYED SEATTLE IMRE CORP SAID FEDERAL REGULATORS WILL REQUEST MORE DATA FROM CLINICAL TESTS BEFORE RULING ON THE COMPANY'S APPLICATION TO MARKET A PRODUCT AS A TREATMENT FOR CERTAIN BLEEDING DISORDERS THAT SOMETIMES OCCUR IN CANCER PATIENTS IMRE A MEDICAL PRODUCTS COMPANY SAID THE FOOD AND DRUG ADMINISTRATION REQUESTED DATA TO COMPLY WITH REGULATIONS THAT DIDN'T EXIST WHEN THE COMPANY DID ITS ORIGINAL TESTS ON WHETHER THE PRODUCT PROSORBA IS EFFECTIVE IN TREATING BLEEDING DISORDERS ASSOCIATED WITH IMMUNE SYSTEM DEFICIENCIES THAT CAN OCCUR IN PATIENTS RECEIVING CHEMOTHERAPY IN OVERTHECOUNTER TRADING IMRE CLOSED UNCHANGED AT 25625 9303230055 930323 INTERNATIONAL BRIEF MITSUBISHI CORP EXTRAORDINARY LOSS TO HURT FISCAL 1993 NET FIRM SAYS MITSUBISHI CORP SAID THAT IT WILL POST AN EXTRAORDINARY LOSS OF 28 BILLION YEN 194 MILLION FOR FISCAL 1993 ENDING MARCH 31 PROBABLY PUSHING NET INCOME BELOW THE GIANT TRADING HOUSE'S FORECAST THE COMPANY CITED A CHARGE FROM RESTRUCTURING ONE OF ITS DOMESTIC FINANCIAL SUBSIDIARIES MC FINANCE CO THAT HAS BEEN STRAPPED BY THE STOCK MARKET'S OVERALL WEAK PERFORMANCE ALTHOUGH MITSUBISHI INTENDS TO SELL SOME OF ITS SHAREHOLDINGS TO OFFSET PART OF THE EXTRAORDINARY LOSS FISCAL 1993 NET PROBABLY WILL FALL SHORT OF ITS ESTIMATE OF 20 BILLION YEN AND 40 BILLION YEN AT THE PARENT AND GROUP LEVELS RESPECTIVELY THE COMPANY SAID MITSUBISHI'S FORECAST FOR PARENT PRETAX PROFIT OF 70 BILLION YEN THIS FISCAL YEAR WAS SOMEWHAT CONSERVATIVE AND PROBABLY WILL BE ACHIEVED THE COMPANY SAID 9303230054 930323 HEARD ON THE STREET COCKING THE TRIGGER ON BUYING DRUG STOCKS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL DRUG STOCKS HAVE BEEN FALLING FOR 15 MONTHS AND THEY'RE LIKELY TO GET ROUGHED UP FURTHER IN APRIL AS PEOPLE TRY TO GUESS WHAT THERAPY HILLARY RODHAM CLINTON'S TASK FORCE WILL PRESCRIBE FOR THE NATION'S HEALTHCARE SYSTEM BUT IF THERE IS AN APRIL MASSACRE SOME HIGHLY REGARDED MONEY MANAGERS PLAN TO BE IN THERE BUYING IF PANIC SELLING PUSHES DOWN STOCKS SUCH AS MERCK PFIZER AND AMERICAN HOME PRODUCTS ANOTHER 5 TO 10 IT COULD BE THE BEST BUYING OPPORTUNITY IN YEARS THEY SAY FEARS OF WHAT THE TASK FORCE MAY RECOMMEND IN EARLY MAY HAVE SET UP A CLASSIC BUYING OPPORTUNITY SAYS ALAN LEIFER MANAGER OF THE 12 BILLION FIDELITY TREND FUND IN BOSTON HE THINKS INVESTORS ARE IGNORING THE POSITIVE SIDE OF THE CLINTON ADMINISTRATION'S DESIRE TO TINKER WITH THE HEALTHCARE SYSTEM ONE OF THE MAJOR GOALS IS TO GET 35 MILLION PEOPLE WHO ARE NOW SHUT OFF FROM CARE BACK INTO THE HEALTHCARE SYSTEM HE SAYS WHAT YOU'LL SEE IS A TREMENDOUS INCREASE IN PHARMACEUTICAL USE RARELY IN THE PAST 20 YEARS HAVE INVESTORS BEEN ABLE TO BUY DRUG STOCKS WITHOUT PAYING A PREMIUM TODAY PEOPLE CAN BUY THEM FOR A PRICE/EARNINGS MULTIPLE STOCK PRICE DIVIDED BY PERSHARE EARNINGS NO HIGHER THAN THE OVERALL MARKET'S SURE THE STOCKS FACE A REAL DANGER THE TASK FORCE COULD URGE STRICT PRICE CONTROLS ON DRUGS AND CONGRESS MIGHT GO ALONG THAT WOULD BE BAD NEWS BUT NOT THE END OF THE WORLD AFTER ALL THE BIG US DRUG COMPANIES ARE MULTINATIONALS THEY EARN DECENT SOMETIMES HANDSOME PROFITS IN MANY COUNTRIES THAT HAVE EXTENSIVE REGULATIONS OR PRICE CONTROLS THE DRUG COMPANIES HAVE IMPRESSIVE STRENGTHS THEY CREATE BREAKTHROUGH PRODUCTS THAT GENUINELY HELP PEOPLE THEY BOAST SUPERB BALANCE SHEETS AND THEY RUN WORLDCLASS RESEARCHANDDEVELOPMENT PROGRAMS AS FIDELITY'S MR LEIFER SEES IT THE INDUSTRY IS MAKING MORE BREAKTHROUGHS THAN EVER SUCH AILMENTS AS MIGRAINES SEIZURES MENTAL ILLNESS CLOGGED ARTERIES AND ENLARGED PROSTATE GLANDS ARE SUSCEPTIBLE TO DRUG THERAPY WHERE BEFORE DRUG THERAPY WAS RELATIVELY INEFFECTIVE HE LIKES ALZA WHICH SPECIALIZES IN IMPROVING DRUGDELIVERY SYSTEMS AND SCHERINGPLOUGH PARTLY FOR ITS STRONG JOINT VENTURES IN THE BIOTECHNOLOGY AREA HE HAS BEEN BUYING BOTH PLUS OTHER DRUG STOCKS HE WON'T IDENTIFY BECAUSE PURCHASES ARE IN PROGRESS A FEW DAYS AGO ALAN BOND PRESIDENT OF BOND PROCOPE IN NEW YORK BEGAN NIBBLING AT MERCK WHEN IT DIPPED BELOW 37 HE PLANS TO BUY MORE ON SUBSEQUENT DIPS I WOULDN'T BUY A FULL POSITION ALL AT ONCE MR BOND SAYS I WOULD EASE INTO DRUG STOCKS GRADUALLY BECAUSE OF THE MARKET'S JITTERS STEPHEN M DALTON OF CORESTATES INVESTMENT ADVISERS IN PHILADELPHIA SAYS INVESTORS ARE ALMOST FINISHED WITH SELLING THE GROUP BUT HE SEES AT LEAST ONE MORE NASTY SPILL AHEAD A VIOLENT SELLOFF IN APRIL MR DALTON EXPECTS THE TASK FORCE TO PROPOSE STIFF PRICE CONTROLS ON DRUGS HOWEVER HE THINKS THAT WILL BE AN INITIAL BARGAINING POSITION THE STARTING POINT FOR DEBATE WHAT CONGRESS PASSES IN THE END WILL BE MORE MODERATE HE PREDICTS UNDER NO CIRCUMSTANCES WOULD I DO ANY BUYING IN APRIL MR DALTON DECLARES BUT HE SAYS LONGTERM INVESTORS WHO PLAN TO HOLD THE STOCKS FOR AT LEAST 18 MONTHS MIGHT WANT TO START NIBBLING IN MAY IF THE STOCKS SEEM TO BE STABILIZING DAVID ELIAS OF ELIAS ASSET MANAGEMENT IN BUFFALO NY IS COCKING HIS PISTOL THOUGH HE ISN'T SURE WHEN HE'LL PULL THE TRIGGER IT MIGHT NOT BE TODAY OR NEXT WEEK HE SAYS BUT I'M GETTING CLOSE I'M KEEPING A SHOPPING LIST WHAT'S ON THAT LIST PFIZER JOHNSON & JOHNSON BRISTOLMYERS SQUIBB AND SYNTEX HOW WILL MR ELIAS KNOW WHEN IT'S TIME WHEN THEY DON'T GO DOWN ON BAD NEWS EVAN STURZA WHO EDITS THE STURZA MEDICAL INVESTMENT LETTER SUGGESTS WAITING AT LEAST UNTIL MAY TO BUY MOST DRUG STOCKS EVERYTHING'S GOTTEN DEMOLISHED HE SAYS YOU NEED A BASING PERIOD WHERE THE STOCKS SPEND A COUPLE MONTHS JUST LANGUISHING BUT HE WOULD GO AHEAD AND PURCHASE A FEW PFIZER SHARES BECAUSE HE IS A BIG ADMIRER OF THE COMPANY'S NEWPRODUCT PIPELINE THE MUTUAL SERIES MUTUALFUND OPERATION IN SHORT HILLS NJ HAS STARTED ITS BUYING ALREADY MONEY MANAGER ROB FRIEDMAN SAYS THE FIRM CLASSIFIES DRUG STOCKS INTO THREE GROUPS THE TOP TIER CONSISTS OF VERY GOOD COMPANIES WITH IMMACULATE BALANCE SHEETS AND GOOD PIPELINES THE LIKES OF ABBOTT LABORATORIES JOHNSON & JOHNSON MERCK AND PFIZER THOUGH THEY HAVE FALLEN A GOOD WAYS THESE STOCKS ARE STILL TOO PRICEY FOR BARGAIN HUNTERS SUCH AS HIMSELF MR FRIEDMAN SAYS THE MIDDLE TIER SAYS MR FRIEDMAN ENCOMPASSES FIRMS THAT ARE JUST A LITTLE WEAKER BUT STILL GOOD COMPANIES WELL MANAGED SUCH AS AMERICAN HOME PRODUCTS AND SCHERINGPLOUGH WE ARE INCLINED AT THIS POINT TO BUY IN THAT SECOND GROUP WHERE THE STOCKS CAN BE HAD FOR 11 TO 13 TIMES ESTIMATED 1993 EARNINGS THE LOWER TIER IN MR FRIEDMAN'S OPINION ARE RUNNING OUT OF DRUGS OR HAVE COSTCONTROL PROBLEMS IN THIS GROUP HE PUTS UPJOHN ELI LILLY MARION MERRELL DOW AND SYNTEX IN A CLASS OF ITS OWN IS WARNERLAMBERT WHICH MR FRIEDMAN CALLS A VERY MEDIOCRE DRUG COMPANY A VERY GOOD CONSUMERPRODUCTS COMPANY AND AN EXTREMELY GOOD CANDY COMPANY WARNERLAMBERT'S BRANDS INCLUDE TRIDENT DENTYNE CERTS MINTS LISTERINE MOUTHWASH HALL'S COUGH DROPS AND ROLAIDS ANTACIDS ANOTHER MONEY MANAGER WHO ISN'T WAITING TO BUY IS ROBERT E TORRAY OF BETHESDA MD HE HAS STAKED OUT HOLDINGS IN AMERICAN HOME PRODUCTS BRISTOLMYERS LILLY PFIZER AND UPJOHN HE DOUBTS THE CLINTON ADMINISTRATION WILL OPT FOR PRICE CONTROLS BECAUSE THE RECORD OF PRICE CONTROLS IS SO DISMAL BESIDES HE SAYS DRUGS ACCOUNT FOR ONLY ABOUT 35 OF THE NATIONAL HEALTHCARE BILL AND IF NECESSARY HE SAYS THE DRUG COMPANIES HAVE AMPLE ROOM TO IMPROVE PROFITS BY CUTTING EXPENSES MR TORRAY'S FAVORITE DRUG STOCK IS LILLY HE THINKS THE COMPANY IS DOING WELL AT TRIMMING EXPENSES OUT OF FAVOR IT SELLS FOR ONLY 10 OR 11 TIMES ESTIMATED 1993 EARNINGS AND YIELDS 5 IN DIVIDENDS OF COURSE MANY PEOPLE ON WALL STREET THINK IT'S STILL TOO SOON TO BUY DRUG STOCKS MARIOLA HAGGAR ANALYST AT SALOMON BROTHERS HASN'T ANY BUY RATINGS IN THE GROUP SHE THINKS THE STOCKS HAVE FALLEN SUFFICIENTLY TO REFLECT THE PROBABLE TRIMMING OF THE TAX BREAK FOR PUERTO RICAN PRODUCTION AND THE LIKELIHOOD THAT PRICE INCREASES WILL BE LIMITED TO THE INFLATION RATE AT BEST BUT SHE ISN'T SURE INVESTORS HAVE FACTORED IN THE POSSIBILITY OF AN ACTUAL ROLLBACK IN DRUG PRICES A ROLLBACK IS QUITE POSSIBLE SHE SAYS MEDICARE MAY BE EXPANDED TO INCLUDE PRESCRIPTION DRUG COVERAGE FOR OLDER PEOPLE IF THAT HAPPENS DRUG COMPANIES MIGHT HAVE TO REBATE A PORTION OF THE SELLING PRICE TO THE GOVERNMENT AS IS THE CASE CURRENTLY WITH MEDICAID EVEN MORE BEARISH IS ECONOMIST GARY SHILLING WHO RUNS THEMATIC INVESTMENT PARTNERS IN SPRINGFIELD NJ IT COULD BE YEARS BEFORE THE DRUG STOCKS ARE A BUY HE ASSERTS THE COMPANIES' PAST PROSPERITY MR SHILLING ARGUES DEPENDED HEAVILY ON PRICE INCREASES NOW THE COMPANIES TELL THE GOVERNMENT THEY ARE WILLING TO SETTLE FOR THE INFLATION RATE BUT HE DOUBTS THEY WILL GET OFF SO LIGHTLY A LOT OF ROLLBACKS ARE PROBABLE HE SAYS SO HIS FUND IS SHORTSELLING BETTING ON DECLINES IN LILLY MERCK AND PFIZER BUT DAVID SAKS WHO RUNS THE QUALITY OF LIFE HEALTH CARE FUND AT GRUNTAL DISMISSES WHAT HE CALLS DOOMSDAY FORECASTS DRUG COMPANIES WILL BE SELLING MORE DRUGS HE SAYS ALBEIT AT LOWER PRICES I HAVE SEEN IN ENGLAND AND IN CANADA COUNTRIES THAT PROVIDE ALMOST FREE ACCESS TO DRUGS THERE LITERALLY IS A WATER FOUNTAIN OF DEMAND HE SAYS HE ALREADY OWNS SOME PFIZER SCHERINGPLOUGH AND MERCK AND RECOMMENDS THEIR PURCHASE ON DIPS DRUG STOCK WHICH TRADITIONALLY HAVE SOLD AT A PREMIUM TO THE AVERAGE STOCK ARE NOW AT OR BELOW THE PRICE/EARNINGS RATIO OF THE OVERALL MARKET BELOW FOUR MARKET PROFESSIONALS TELL AT WHAT LEVELS THEY'D JUMP IN TO BUY 9303230053 930323 BUSINESS BRIEF ROCKY MOUNTAIN HELICOPTERS INC LOSS OF 32 MILLION POSTED FOR FISCAL THIRD QUARTER ROCKY MOUNTAIN HELICOPTERS INC REPORTED A LOSS OF 32 MILLION OR 68 CENTS A SHARE FOR THE THIRD QUARTER ENDED JAN 31 THE AVIATION SUPPORT COMPANY IN PROVO UTAH CITED BAD WEATHER AND POOR RESULTS AT HELICOPTER LOGGING OPERATIONS IN OREGON AND AT A COMMUTER AIRLINE IN THE PACIFIC NORTHWEST IT SAID IT HAS SHUT DOWN BOTH THE LOGGING OPERATION AND THE AIRLINE WHICH BETWEEN THEM HAD LOSSES IN THE QUARTER TOTALING 3 MILLION REVENUE ROSE 2 TO 196 MILLION FROM 192 MILLION IN THE YEARAGO QUARTER THE COMPANY HAD A LOSS OF 553000 OR 16 CENTS A SHARE IN THE FIRST NINE MONTHS THE COMPANY HAD A NET LOSS OF 3 MILLION OR 66 CENTS A SHARE ON A 12 RISE IN REVENUE TO 725 MILLION IN THE PRIOR NINE MONTHS IT EARNED 407000 OR 12 CENTS A SHARE ON REVENUE OF 648 MILLION IN OVERTHECOUNTER TRADING ROCKY MOUNTAIN HELICOPTERS CLOSED AT 2625 DOWN 25 CENTS 9303230052 930323 BUSINESS BRIEF GUARDSMAN PRODUCTS INC CHIEF SEES BETTER 1ST QUARTER IN YEAR THAT STARTED STRONG' GUARDSMAN PRODUCTS INC'S PRESIDENT AND CHIEF EXECUTIVE OFFICER CHARLES E BENNETT SAYS THE YEAR HAS STARTED OUT VERY STRONG HE SEES THE CURRENT FIRST QUARTER RUNNING AHEAD OF THE PREVIOUS YEAR'S QUARTER INDUSTRY ANALYSTS EXPECT GUARDSMAN A GRAND RAIDS MICH MAKER OF COATINGS AND MANUFACTURER OF HOMECARE PRODUCTS TO REPORT FIRSTQUARTER EARNINGS OF ABOUT 13 CENTS A SHARE THAT WOULD COMPARE WITH PERSHARE NET INCOME OF FIVE CENTS A SHARE IN THE YEARAGO PERIOD GUARDSMAN POSTED NET INCOME OF 342000 ON SALES OF 363 MILLION IN THE YEARAGO FIRST QUARTER THE COMPANY'S CORE BUSINESS IS MAKING COATINGS FOR RESIDENTIAL AND OFFICE FURNITURE APPLIANCES AND KITCHEN CABINETS ABOUT 77 OF ITS SALES ARE GENERATED FROM ITS COATINGS GROUP MR BENNETT SAID HIS COMPANY PLANS TO BOOST ITS COATINGS RESEARCH FOR ENVIRONMENTALLY SAFE PRODUCTS TO 6 OF ITS BUDGET FOR ALL COATINGS RESEARCH UP FROM 5 AND THE COMPANY IS LOOKING TO EXPAND ITS PRODUCT OFFERINGS THROUGH ACQUISITIONS WE ARE ACTIVELY SEEKING PRODUCTS LINES MR BENNETT SAID 9303230051 930323 JUSTICES TO RULE ON EXPANDING LIABILITY OF INSURERS IN MANAGING PENSION FUNDS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER TO INCREASE THE LEGAL LIABILITY OF INSURANCE COMPANIES IN MANAGING PENSION FUNDS AT ISSUE IS WHETHER INSURERS OUGHT TO BE HELD TO TOUGH FEDERAL STANDARDS FOR THE MANAGEMENT OF SOCALLED GROUP ANNUITY CONTRACTS PURCHASED BY PENSION PLANS ON BEHALF OF EMPLOYEES THESE CONTRACTS GUARANTEE BENEFICIARIES SPECIFIED ANNUAL PAYMENTS UPON RETIREMENT INSURERS CLAIM THAT IF THEY ARE HELD TO THE MORE DEMANDING FEDERAL REQUIREMENTS AS OPPOSED TO LOOSER STATE STANDARDS THEY WILL HAVE TO REVISE MANAGEMENT AND INVESTMENT METHODS FOR HUNDREDS OF BILLIONS OF DOLLARS IN PENSION MONEY AN UNDERTAKING THEY SAY WOULD BE COSTLY AND WOULD POSE COMPLICATED ADMINISTRATIVE PROBLEMS TRADITIONALLY INSURERS MIX PREMIUMS FROM GROUP ANNUITY CONTRACTS WITH PREMIUMS FROM OTHER TYPES OF INSURANCE CONTRACTS INVESTING MUCH OF THE MONEY AND USING SOME TO PAY SALARIES AND OTHER BUSINESS EXPENSES MANAGEMENT OF THESE GENERAL ACCOUNTS HAS BEEN REGULATED BY STATE CONTRACT AND INSURANCE LAWS BY CONTRAST TRUST ACCOUNTS WHICH ARE MANAGED ONLY FOR THE BENEFIT OF INDIVIDUAL INVESTORS OR PENSION PLANS ARE KEPT SEPARATE FROM GENERAL ACCOUNTS TRUST ACCOUNTS ARE PROTECTED BY THE FEDERAL EMPLOYEE RETIREMENT INVESTMENT SECURITY ACT OR ERISA ERISA GENERALLY REQUIRES THAT MANAGERS OF PENSION FUNDS ACT AS FIDUCIARIES MEANING THAT THE MONEY MUST BE HANDLED SOLELY IN THE INTEREST OF THE BENEFICIARIES AND FOR NO OTHER PURPOSE IN PRACTICAL TERMS FIDUCIARY STATUS EXPOSES A FUND MANAGER TO FAR GREATER LEGAL LIABILITY THE CASE THE SUPREME COURT AGREED TO HEAR RAISES THE QUESTION OF WHETHER UNDER CERTAIN CIRCUMSTANCES MANAGEMENT OF GENERAL ACCOUNTS ALSO MUST MEET THE TOUGHER REQUIREMENTS OF ERISA CONGRESS CREATED AN EXCEPTION TO ERISA'S FIDUCIARY REQUIREMENTS FOR INSURANCE COMPANIES THAT HOLD PENSION MONEY UNDER A CONTRACT THAT GUARANTEES SPECIFIC FUTURE BENEFITS THE HIGH COURT WILL DECIDE WHETHER THE EXCEPTION COVERS A COMMON TYPE OF ANNUITY CONTRACT THAT GUARANTEES SPECIFIC BENEFITS BUT ALSO HAS THE POTENTIAL TO PROVIDE SUPPLEMENTAL BENEFITS DEPENDING ON THE INSURER'S INVESTMENT SUCCESS IN A SEPARATE CASE THE SUPREME COURT SAID IT WOULD DECIDE WHETHER FIRED EXECUTIVES OF FAILED FINANCIAL INSTITUTIONS MAY SUE THE FEDERAL REGULATORY AGENCIES THAT OUSTED THEM THE JUSTICES AGREED TO HEAR AN APPEAL BY THE FEDERAL DEPOSIT INSURANCE CORP WHICH WARNED THAT SUCH LAWSUITS COULD SEVERELY HAMPER THE CONTINUING CLEANUP OF THE THRIFT AND BANK INDUSTRIES THE CASE AROSE FROM THE FAILURE OF A CALIFORNIA THRIFT FIDELITY SAVINGS & LOAN WHICH WAS PUT INTO FEDERAL RECEIVERSHIP IN 1982 A FEDERAL BANK REGULATOR FIRED FIDELITY'S FOUR TOP OFFICIALS WITHOUT GIVING THEM A CHANCE TO CONTEST THE DECISION ONE OF THE OFFICIALS JOHN MEYER SUED THE GOVERNMENT CLAIMING THAT HE HAD BEEN DEPRIVED OF HIS PROPERTY INTEREST IN HIS JOB WITHOUT BEING AFFORDED DUE PROCESS OF LAW A JURY FOUND THE GOVERNMENT LIABLE AND AWARDED MR MEYER 130000 FOR LOSSES RELATED TO THE FIRING THE US COURT OF APPEALS FOR THE NINTH CIRCUIT IN SAN FRANCISCO AFFIRMED THE VERDICT CONCLUDING THAT THE GOVERNMENT SHOULD HAVE GIVEN MR MEYER AN OPPORTUNITY TO BE HEARD THE FDIC APPEALED THAT DECISION TO THE SUPREME COURT THE AGENCY ARGUED THAT THE LOWER COURT HAD IMPROPERLY RELIED ON A 1971 SUPREME COURT DECISION THAT SAID INDIVIDUALS MAY SUE FEDERAL OFFICIALS WHO HAVE DELIBERATELY ENGAGED IN UNCONSTITUTIONAL CONDUCT OVER TWO DECADES NO OTHER COURT HAS RELIED ON THAT PRECEDENT TO ALLOW A SUIT AGAINST A FEDERAL AGENCY THE GOVERNMENT SAID IN OTHER ACTIONS THE HIGH COURT REFUSED TO HEAR AN APPEAL BY NINTENDO OF AMERICA INC IN ITS COPYRIGHT BATTLE WITH LEWIS GALOOB TOYS INC OVER A GALOOB PRODUCT CALLED GAME GENIE THE PRODUCT ALLOWS PLAYERS TO ALTER NINTENDO VIDEO GAMES ELECTRONICALLY TO CREATE A VARIETY OF NEW RULES OR SPECIAL EFFECTS THE UNIT OF JAPAN'S NINTENDO CO SUED GALOOB CLAIMING THAT THE PRODUCT VIOLTED ITS COPYRIGHTED GAMES AFFIRMING A TRIAL JUDGE'S RULING THE FEDERAL APPEALS COURT IN SAN FRANCISCO SAID THAT THE ALTERED VERSIONS OF NINTENDO'S GAMES WEREN'T DERIVATIVE WORKS PROTECTED BY NINTENDO'S COPYRIGHTS NINTENDO OF AMERICA INC VS LEWIS GALOOB TOYS INC LET STAND A LOWERCOURT RULING THAT COULD FORCE TREASURE HUNTERS TO SHARE A BILLIONDOLLAR GOLD CACHE FROM A SUNKEN 19THCENTURY SHIP WITH INSURERS THE CASE INVOLVED THE SS CENTRAL AMERICA WHICH SANK IN THE ATLANTIC IN 1857 IN ONE OF THE MOST FAMOUS SHIPWRECKS IN US HISTORY COLUMBUSAMERICA DISCOVERY GROUP VS ATLANTIC MUTUAL INSURANCE CO 9303230050 930323 ENVIRONMENT BY DAVE KANSAS MUNICIPALITIES CONCERNED ABOUT RECYCLING COSTS MAY WANT TO TAKE ANOTHER LOOK A STUDY OF RECYCLING COSTS IN 30 CITIES AND COMMUNITIES IN 21 STATES BY THE INSTITUTE FOR LOCAL SELFRELIANCE FINDS THAT SUCH PROGRAMS CAN ACTUALLY SAVE TAX DOLLARS AND PROVIDE OTHER LOCAL ECONOMIC BENEFITS BRENDA PLATT MATERIALSRECOVERY DIRECTOR FOR THE WASHINGTONBASED GROUP SAYS RECYCLING CAN REDUCE WASTEMANAGEMENT COSTS AND EMPLOY MORE PEOPLE IN THE PRIVATE SECTOR BOOSTING A MUNICIPALITY'S TAX BASE CRITICS OF MUNICIPAL RECYCLING OFTEN CITE THE EXPENSIVE EFFORTS IN CHICAGO AND NEW YORK CITY HOWEVER THE INSTITUTE'S STUDY FINDS THAT RECYCLINGCOLLECTION COSTS ARE OFTEN LOWER THAN STANDARD WASTECOLLECTION COSTS PER TON IN SEATTLE FOR EXAMPLE REFUSE COLLECTION AND DISPOSAL COSTS ABOUT 105 A TON COMPARED WITH ABOUT 50 A TON FOR RECYCLINGCOLLECTION AND PROCESSING COSTS FURTHER THE INSTITUTE CLAIMS THAT A CITY OF ONE MILLION PEOPLE WITH TYPICAL LANDFILL COSTS OF 24 MILLION A YEAR CAN SAVE ITS LOCAL GOVERNMENT BUSINESSES AND HOUSEHOLDS ABOUT 7 MILLION THROUGH AGGRESSIVE EXPANSION OF MATERIALSRECOVERY EFFORTS SOME CRITICS INSIST MUNICIPAL RECYCLING PROGRAMS REMAIN COSTINEFFECTIVE LYNN SCARLETT VICE PRESIDENT OF THE REASON FOUNDATION SAYS A COMMUNITY WOULD HAVE TO DIVERT AT LEAST 50 OF ITS WASTE STREAM INTO RECYCLING BEFORE IT COULD BEGIN SHIFTING CREWS TO SAVE MONEY AND WE DON'T BELIEVE DIVERSION CAN REALLY REACH THAT LEVEL THE INSTITUTE'S MS PLATT HOWEVER BELIEVES MATERIALS RECOVERY CAN PUSH PAST 40 IN MOST COMMUNITIES WITH INCREASED RECOVERY EFFORTS AND STRONGER PROGRAMS FOR YARDWASTE COMPOSTING BUT THE MARKETS FOR SOME RECYCLED PRODUCTS REMAIN THIN NEW LEGISLATION TO CURB ABUSES IN THE WILDBIRD TRADE CLINGS TO A SHAKY PERCH CONGRESS PASSED THE MEASURE IN LATE 1992 HOPING TO STEM THE GROWING TRADE IN ENDANGERED WILD BIRDS IN 1991 THE US LEGALLY IMPORTED ABOUT 400000 WILD BIRDS MANY OF THEM PARROTS AND SMUGGLERS BROUGHT MANY MORE BIRDS ACROSS THE MEXICAN AND FLORIDA BORDERS ALTHOUGH THE LAW IS SCHEDULED TO TAKE EFFECT IN OCTOBER CONGRESS HASN'T YET BACKED IT WITH ANY APPROPRIATIONS THE US FISH AND WILDLIFE SERVICE SAYS IT CAN'T WRITE REGULATIONS AND ENFORCE THE LAW WITHOUT FUNDS FOR STAFF AND FACILITIES THAT MAY BEGIN TO CHANGE SOON THOUGH BECAUSE PRESIDENT CLINTON'S ECONOMIC STIMULUS PLAN INCLUDES INITIAL FUNDING THE LAW SHARPLY LIMITS IMPORTS OF WILD BIRDS AND VIRTUALLY ELIMINATES TRADE IN SOUTH AMERICAN PARROTS ABOUT 250000 OF WHICH HAVE BEEN IMPORTED A YEAR WILDLIFE CONSERVATION INTERNATIONAL SAYS SUCH TRADE HAS DEVASTATED THE SOUTH AMERICAN PARROT POPULATION FEWER THAN 5000 HYACINTH MACAWS REMAIN IN THE WILD THERE DOWN FROM AN ESTIMATED 100000 IN 1950 RESEARCHERS SAY EXTENSIVE HARVESTING OF WILD BIRDS THREATENS FURTHER DAMAGE TO SOME DELICATE ECOSYSTEMS THE COLORFUL MACAWS MEMBERS OF THE PARROT FAMILY ARE SLOPPY EATERS AND THEIR STRONG BEAKS CREATE VITAL FOOD SHARDS FOR SEVERAL OTHER ANIMAL SPECIES MACAWS ALSO SCATTER SEEDS SO WITHOUT THEM NATURAL REFORESTATION SUFFERS IMPORTING BIRDS MAY BECOME TRICKY FOR BREEDERS ZOOS AND OTHER GROUPS UNTIL RULES ARE WRITTEN REGULATIONS ARE NEEDED TO IMPLEMENT EXEMPTIONS SAYS DONALD BRUNING CHAIRMAN OF ORNITHOLOGY AT NYZS/THE WILDLIFE CONSERVATION SOCIETY WHICH RUNS THE CENTRAL PARK AND BRONX ZOOS IN NEW YORK WE'RE AFRAID INACTION MAY ALIENATE THOSE WHO SUPPORTED THE BILL EXCESSIVE EXPOSURE TO DIESEL FUMES MAY LEAD TO CHRONIC ASTHMA LEE S NEWMAN A PULMONARY SPECIALIST AT THE NATIONAL JEWISH CENTER FOR IMMUNOLOGY AND RESPIRATORY MEDICINE IN DENVER EXAMINED SEVERAL RAIL WORKERS WHO SUFFERED SEVERE ASTHMATIC REACTIONS AFTER TAKING NONWORKING RAIL TRIPS TO REACH NEW WORK LOCATIONS IN THE 1980S US RAILROADS ELIMINATED MOST OF THEIR CABOOSES WHICH HOUSED EXTRA WORKERS TRAVELING TO DIFFERENT SITES ALONG THE LINE NOW SUCH WORKERS OFTEN TAKE A RIDE IN A SECOND LOCOMOTIVE DIRECTLY BEHIND THE LEADING DIESEL ENGINE ACCORDING TO DR NEWMAN'S FINDINGS PUBLISHED BY THE AMERICAN COLLEGE OF OCCUPATIONAL AND ENVIRONMENTAL MEDICINE IN FEBRUARY RIDERS IN THE SECOND LOCOMOTIVE CAN BE EXPOSED TO SEVERE LEVELS OF DIESEL FUMES FOR SEVERAL HOURS DEPENDING ON WIND VENTILATION AND OTHER FACTORS AFTER EVALUATING THE CASES HE ASKED TO CONDUCT A MORE COMPREHENSIVE STUDY OF DIESEL FUMES IN THE SECOND LOCOMOTIVE BUT HE SAYS THE RAILROADS REBUFFED HIM THE POSSIBLE LINK BETWEEN DIESEL FUMES AND ASTHMA RAISES WORKPLACE ISSUES NOT ONLY FOR THE RAILROAD INDUSTRY BUT ALSO FOR BUS GARAGES AND TRUCKING AND FUELING STATIONS THE AMERICAN LUNG ASSOCIATION SAYS THE FINDINGS WARRANT FURTHER STUDY MEANWHILE THE RAILROAD INDUSTRY HAS COMMISSIONED ITS OWN STUDY INTO THE EFFECTS OF DIESEL FUEL HOWEVER UNION PACIFIC CORP AND BURLINGTON NORTHERN CO THE TWO COMPANIES WITH WORKERS INVOLVED IN DR NEWMAN'S REPORT SAY THEY NOW DISCOURAGE WORKERS FROM RIDING IN SECOND LOCOMOTIVES ANIMAL PROTECTION GROUPS LED BY THE HUMANE SOCIETY OF THE US AND THE ANIMAL WELFARE INSTITUTE ARE BOYCOTTING TAIWAN TO PROTEST ALLEGED STOCKPILING OF TONS OF POACHED RHINOCEROS HORNS THE UNIVERSITY OF FLORIDA'S INSTITUTE OF FOOD AND AGRICULTURAL SCIENCES PROMOTES THE GROUNDSKEEPER A BIODEGRADABLE PAPERBOARD BOX FOR HOMEOWNERS TO USE AS A LOWTECHNOLOGY COMPOSTER DUKE POWER AND SOUTH CAROLINA ELECTRIC & GAS HELP FUND A YEARLONG STUDY AT CLEMSON UNIVERSITY OF POTENTIAL HEALTH HAZARDS FROM MAGNETIC FIELDS PRODUCED BY BURIED ELECTRICAL CABLES 9303230049 930323 BUSINESS BRIEF RODMAN & RENSHAW CAPITAL GROUP FIRM'S EXCHAIRMAN SELLS 125 STAKE TO 8 INVESTORS RODMAN & RENSHAW CAPITAL GROUP INC SAID THAT EIGHT UNIDENTIFIED INVESTORS BOUGHT ALL 547000 RODMAN SHARES OWNED BY FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER IRA J KAUFMAN FOR 6 A SHARE THE STAKE EQUALS 125 OF THE SECURITIES AND COMMODITIES BROKER'S COMMON SHARES OUTSTANDING NONE OF THE PURCHASERS OWNS MORE THAN 49 OF RODMAN'S SHARES THE COMPANY IN CHICAGO SAID KURT KARMIN MR KAUFMAN'S SUCCESSOR AS RODMAN CHAIRMAN AND CHIEF EXECUTIVE SAID THAT MR KAUFMAN HAD GIVEN THE FIRM A 30DAY OPTION TO FIND BUYERS FOR THE SHARES AND THAT THE TRANSACTION WAS ARRANGED IN ABOUT TWO WEEKS MR KAUFMAN COULDN'T BE REACHED FOR COMMENT MR KAUFMAN 65 YEARS OLD WAS CHAIRMAN AND CHIEF EXECUTIVE OF RODMAN FROM 1981 TO 1990 WHEN HE WAS NAMED HONORARY CHAIRMAN EMERITUS OF THE BOARD THE COMPANY SAID THAT MR KAUFMAN WHO SPENDS MUCH OF THE YEAR IN FLORIDA HAS RESIGNED AS A DIRECTOR BUT REMAINS A SALESMAN FOR THE FIRM 9303230048 930323 LEISURE & ARTS BOOKSHELF BEWARE THOUGHT VIGILANTES' BY DIANE RAVITCH I HAVE BEEN WAITING FOR THIS BOOK FOR A LONG TIME JONATHAN RAUCH'S KINDLY INQUISITORS THE NEW ATTACKS ON FREE THOUGHT UNIVERSITY OF CHICAGO PRESS 178 PAGES 1795 PROVIDES THE PHILOSOPHICAL DEFENSE OF FREE SPEECH AND FREE THOUGHT THAT SEEMS TO HAVE BEEN FORGOTTEN ON MOST COLLEGE CAMPUSES AND IN MANY LEGISLATIVE HALLS IN RECENT YEARS IN IT MR RAUCH A CONTRIBUTING EDITOR FOR THE NATIONAL JOURNAL CLOSELY EXAMINES RECENT EFFORTS TO IMPOSE POLITICAL ORTHODOXY WHETHER BY THE LEFT OR THE RIGHT AND CLEARLY EXPLAINS WHY ALL SUCH INVASIONS OF OUR INTELLECTUAL FREEDOM MUST BE RESISTED IN A TONE THAT IS CONSISTENTLY QUIET AND REASONABLE MR RAUCH REVIEWS SOME OF THE MOST CONTENTIOUS ISSUES OF OUR TIME AYATOLLAH KHOMEINI'S DECREE SENTENCING SALMAN RUSHDIE TO DEATH CREATIONIST EFFORTS TO WIN EQUAL TIME IN SCIENCE TEXTBOOKS DEMANDS TO SUPPRESS THOSE WHO CLAIM THAT THE HOLOCAUST NEVER HAPPENED SPEECH CODES ON CAMPUS THAT PUNISH THOSE WHO MAKE OFFENSIVE COMMENTS ABOUT WOMEN BLACKS GAYS AND OTHER DESIGNATED GROUPS DEMANDS BY AFROCENTRISTS THAT SCHOOLBOOKS BE REWRITTEN TO GIVE EQUAL TIME TO THEIR VERSION OF HISTORY LAWS THAT INCREASE THE PENALTY FOR CRIMES MOTIVATED BY BIAS ACADEMICS WHO DEFEND SPEECH CODES CLAIM THAT THEIR CRITICS ARE SIMPLY APOLOGISTS FOR RACISM SEXISM AND HOMOPHOBIA THEY HANDILY DISMISS CRITICS OF POLITICAL CORRECTNESS AS UNWORTHY REACTIONARIES WHO DO NOT SHARE THEIR HUMANITARIAN OR EGALITARIAN ENDS MR RAUCH SKILLFULLY DEFLATES THEIR CLAIMS BY PUTTING THEM IN THE SAME BOAT WITH CREATIONISTS AND OTHER THOUGHT VIGILANTES CITIZEN POSSES ORGANIZED TO PUNISH PEOPLE WITH WRONG AND DANGEROUS IDEAS IT GREATLY STRENGTHENS MR RAUCH'S ARGUMENT THAT HE DOES NOT MAKE A CASE FOR A RIGHTWING OR LEFTWING AGENDA INSTEAD HE MAKES A POWERFUL ARGUMENT FOR WHAT HE CALLS LIBERAL SCIENCE THAT IS THE MEANS BY WHICH EVIDENCE IS WEIGHED ARGUMENTS ARE RESOLVED AND KNOWLEDGE IS ESTABLISHED THERE ARE SAYS MR RAUCH THREE GREAT LIBERAL SOCIAL AND POLITICAL SYSTEMS ONE IS DEMOCRACY POLITICAL LIBERALISM BY WHICH WE DECIDE WHO IS ENTITLED TO USE FORCE ANOTHER IS CAPITALISM ECONOMIC LIBERALISM BY WHICH WE DECIDE HOW TO ALLOCATE RESOURCES THE THIRD IS LIBERAL SCIENCE BY WHICH WE DECIDE WHO IS RIGHT LIBERAL SCIENCE HE ARGUES HAS BEEN SUCCESSFUL NOT MERELY AS A PRODUCER OF TECHNOLOGY BUT AS A SOCIAL PROCESS THAT WORKS THROUGH CRITICISM AND DEBATE TO SETTLE DIFFERENCES OF OPINION AND ADVANCE KNOWLEDGE SCIENTIFIC CONSENSUS EVOLVES FROM TRIAL AND ERROR WHICH REQUIRES FREEDOM OF THOUGHT FREEDOM FROM IMPOSED ORTHODOXY AND FREEDOM TO ERR HE DEFINES THE SOCIETY OF LIBERAL SCIENCE AS A COMMUNITY OF PEOPLE LOOKING FOR EACH OTHER'S MISTAKES TWO RULES DEFINE LIBERAL SCIENCE ONE NO ONE GETS THE FINAL SAY THAT IS WHY CRITICISM IS ALWAYS LEGITIMATE BECAUSE THE CRITIC NO MATTER HOW RUDE OR BIZARRE MIGHT BE RIGHT AND TWO NO ONE HAS PERSONAL AUTHORITY THAT IS NO ONE HAS THE PERSONAL AUTHORITY TO ACT AS ARBITER OF TRUTH OR ERROR MR RAUCH TAKES HIS DISCUSSION BACK TO A DEBATE BETWEEN THE IDEAS OF PLATO AND JOHN LOCKE PLATO BELIEVED THAT THE PHILOSOPHERKING THE WISEST OF ALL MEN WOULD DECIDE WHICH KNOWLEDGE WAS TRUE LOCKE RECOGNIZED THE VALUE OF SKEPTICISM THE LIKELIHOOD OF ERROR THE NECESSITY FOR TOLERATION ONE STRAIN OF THOUGHT RESTED ON AUTHORITY THE OTHER ON EVIDENCE AND CRITICISM KINDLY INQUISITORS DEPLORES WHAT THE AUTHOR CALLS A NEW AUTHORITARIANISM WHICH CONSISTS OF THE FUNDAMENTALISTS WHO WANT TO PROTECT THE TRUTH THE EGALITARIANS WHO WANT TO HELP THE OPPRESSED AND THE HUMANITARIANS WHO WANT TO STOP VERBAL VIOLENCE AND THE PAIN IT CAUSES THESE THREE IMPULSES WORKING IN CONCERT REPRESENT A DANGEROUS THREAT TO FREE THOUGHT MR RAUCH LIKENS EFFORTS TO INSERT MINORITY PERSPECTIVES INTO TEXTBOOKS AND SCHOOL CURRICULA TO COMPARABLE DEMANDS BY CREATIONISTS SAYS MR RAUCH YOU ARE FREE TO BELIEVE ANYTHING YOU LIKE BUT YOU ARE NOT ENTITLED TO EXPECT THAT YOUR BELIEF WILL BE TAUGHT TO SCHOOLCHILDREN OR ACCEPTED BY THE INTELLECTUAL ESTABLISHMENT AS KNOWLEDGE THE DANGER THAT HE CORRECTLY RECOGNIZES IS THE POLITICAL MANIPULATION OF KNOWLEDGE THE USE OF POLITICAL PRESSURE ON AND BY LEGISLATORS OR APPOINTED POLITICAL AUTHORITIES TO DECREE WHAT IS TO BE TAUGHT AS TRUTH TO THE CREATIONISTS AND THE AFROCENTRISTS MR RAUCH SAYS YOU DO NOT HAVE A CLAIM TO KNOWLEDGE EITHER BECAUSE 51 PERCENT OF THE PUBLIC AGREES WITH YOU OR BECAUSE YOUR GROUP' WAS HISTORICALLY LEFT OUT YOU HAVE A CLAIM TO KNOWLEDGE ONLY TO THE EXTENT THAT YOUR OPINION STILL STANDS UP AFTER PROLONGED EXPOSURE TO WITHERING PUBLIC TESTING BUT WHAT ABOUT THE PERSON WHO SHOUTS RACIAL EPITHETS PUNISHING THOSE WHO MAKE OFFENSIVE STATEMENTS DOESN'T WORK HE SAYS THE ONLY WAY TO KILL A BAD IDEA IS BY EXPOSING IT AND SUPPLANTING IT WITH BETTER ONES AND REGULATING THE EXPRESSION OF OPINION IS ALWAYS DANGEROUS NO MATTER HOW OBNOXIOUS THE OPINION TO PRESERVE FREE THOUGHT HE ARGUES WE HAVE A POSITIVE MORAL OBLIGATION TO BE THICKSKINNED MS RAVITCH A VISITING FELLOW AT THE BROOKINGS INSTITUTION WAS MOST RECENTLY ASSISTANT SECRETARY OF THE DEPARTMENT OF EDUCATION IN THE BUSH ADMINISTRATION 9303230047 930323 BUSINESS BRIEF IMAGE ENTERTAINMENT INC ONETIME CHARGE EXPECTED TO LEAD TO LOSS FOR YEAR IMAGE ENTERTAINMENT INC SAID IT PLANS TO TAKE A ONETIME RESTRUCTURING CHARGE OF 5 MILLION THAT WILL RESULT IN A LOSS OF 9 MILLION OR ABOUT 74 CENTS A SHARE FOR THE YEAR IN THE PREVIOUS YEAR ENDED MARCH 31 IMAGE REPORTED NET INCOME OF 516000 OR FOUR CENTS A SHARE AS PART OF THE RESTRUCTURING THE CHATSWORTH CALIF SUPPLIER OF LASERDISK SOFTWARE SAID IT PLANS TO CUT ITS WORK FORCE 17 TO 78 SCALE BACK ITS VIDEOTAPE RELEASE SCHEDULE AND REDUCE OTHER OPERATING COSTS IMAGE SAID IT PLANS TO REDUCE LONGTERM DEBT WITH ANTICIPATED CASH FLOW FROM OPERATIONS AND THROUGH MEANINGFUL REDUCTIONS IN ITS LASERDISK INVENTORY JEROME M SMOLAR 43 CHIEF FINANCIAL OFFICER WAS AMONG THE LAIDOFF EMPLOYEES NAMED AS ACTING CHIEF FINANCIAL OFFICER WAS JEFF FRAMER 31 COMPANY CONTROLLER WHO WILL FILL BOTH POSTS KYLE KIRKLAND 30 AN INVESTMENT BANKER WAS NAMED A DIRECTOR INCREASING THE BOARD TO FIVE TOGETHER WITH VOLUNTARY WAGE REDUCTIONS AT THE EXECUTIVE LEVEL IMAGE SAID IT EXPECTS TO REALIZE SALARY EXPENSE SAVINGS OF ABOUT 15 MILLION IN FISCAL YEAR 1993 9303230046 930323 RUSSIAN CRISIS EASES AS COURT CONSIDERS ISSUES WHILE YELTSIN STRUGGLES US SCRAMBLES TO BOOST PLANNED AID PACKAGE BY ADI IGNATIUS AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL THE EXTREME POLITICAL TENSION IN RUSSIA EBBED YESTERDAY WITH BOTH SIDES APPEARING MORE RECEPTIVE TO COMPROMISE ANALYSTS EVEN BEGAN TO FIND HUMOR IN THE IMPASSE BETWEEN PRESIDENT BORIS YELTSIN AND THE PARLIAMENT COINING A PHRASE THAT QUICKLY SPREAD AMONG MOSCOW'S POLITICAL CIRCLES YEVGENY KISELYOV A MOSCOW TELEVISION COMMENTATOR SAID RUSSIA'S POLITICAL CRISIS HAD DETERIORATED INTO A LEGAL THEATER OF THE ABSURD CENTER STAGE NOW IS THE CONSTITUTIONAL COURT WHICH IS SORTING THROUGH EACH SIDE'S CLAIMS THAT THE OTHER HAS TRAMPLED THE CONSTITUTION BUT AS THE COURT DELIBERATES MR YELTSIN'S SUPPORTERS SEEMING MORE CONFIDENT THAN IN RECENT DAYS ALREADY HAVE TAKEN THE OFFENSIVE CLAIMING WIDESPREAD SUPPORT FOR THE PRESIDENT'S PLAN TO SEIZE TEMPORARY EMERGENCY POWERS TO PUSH THROUGH A NATIONAL REFERENDUM ON HOW RUSSIA SHOULD BE GOVERNED EVEN BEFORE THE COURT'S RULING ON THE LEGALITY OF SUCH A VOTE THEY HAVE BEGUN LAYING THE GROUNDWORK FOR THE REFERENDUM THE CLINTON ADMINISTRATION IS CONSIDERING RESPONDING TO MR YELTSIN'S POLITICAL STRUGGLES BY ASKING CONGRESS TO SPEND MORE THAN THE 700 MILLION THE ADMINISTRATION HAS ALREADY PROPOSED TO GIVE RUSSIA NEXT YEAR SECRETARY OF STATE WARREN CHRISTOPHER DECLINED TO SAY WHETHER THE AID REQUEST WOULD BE RAISED BUT HE SAID I AM DETERMINED TO WORK WITH CONGRESS TO FIND THE FUNDING I AM CONFIDENT THE NECESSARY RESOURCES CAN BE FOUND AS WE RESTRUCTURE OUR DEFENSE BUDGET US OFFICIALS ARE SCRAMBLING TO PUT TOGETHER AN AID PACKAGE BEFORE THE SCHEDULED APRIL 3 TO APRIL 4 SUMMIT BETWEEN PRESIDENTS CLINTON AND YELTSIN RUSSIA'S CONSTITUTIONAL COURT WHICH HADN'T REACHED A VERDICT BY DAY'S END BEGAN ITS DELIBERATIONS UNDER A CLOUD ITS CHAIRMAN VALERY ZORKIN EMBARRASSED COLLEAGUES SATURDAY WHEN HE PUBLICLY CRITICIZED MR YELTSIN'S DECLARATION MR ZORKIN RAILED AT THE PRESIDENT ON NATIONAL TELEVISION CALLING MR YELTSIN'S MOVE AN ATTEMPT TO CARRY OUT A COUP D'ETAT YESTERDAY MR ZORKIN SEEMED ON THE DEFENSIVE RENEWING CALLS FOR A COMPROMISE HE DENIED HE HAD TAKEN SIDES IN THE POLITICAL STRUGGLE SUPPORTING MR YELTSIN'S CHIEF RIVAL PARLIAMENTARY CHAIRMAN RUSLAN KHASBULATOV MR ZORKIN TOLD A PRESS CONFERENCE THAT THE COURT IS NOT IN KHASBULATOV'S POCKET HOWEVER THE COURT RULES IT WON'T BE THE FINAL WORD THOUGH BOTH SIDES COUCH THE DEBATE IN TERMS OF WHICH SIDE IS PURSUING THE CONSTITUTIONAL PATH THE DEBATE IN FACT HAS LITTLE TO DO WITH THE CONSTITUTION THE CONSTITUTION IS AN UPDATED DOCUMENT FROM THE SOVIET ERA THAT FEW PEOPLE CAN UNDERSTAND AND BOTH SIDES ARE TRYING TO REWRITE INSTEAD THE BATTLE IS BETWEEN THE PRESIDENT'S VISION OF A DEMOCRATIC RUSSIA PURSUING A PROWEST FREEMARKET PATH AND HIS OPPONENTS' DESIRE TO RETURN AT LEAST PARTLY TO THE CENTRAL CONTROL OF THE COMMUNIST PAST PARLIAMENT IS WAITING FOR THE COURT TO RULE BEFORE IT TAKES ITS NEXT STEP IN THE BATTLE WITH MR YELTSIN A COURT DECISION AGAINST THE PRESIDENT COULD LEAD TO CALLS TO CONVENE AN EMERGENCY SESSION OF THE CONGRESS OF PEOPLE'S DEPUTIES TO IMPEACH THE PRESIDENT IMPEACHMENT WOULD REQUIRE A TWOTHIRDS VOTE OF THE 1033MEMBER BODY BUT MR YELTSIN HAS SAID HE WON'T RESPECT SUCH A VOTE AT LEAST UNTIL AFTER THE REFERENDUM HE HAS CALLED FOR APRIL 25 IN THE MEANTIME MR YELTSIN SEEMS TO BE EMPLOYING A TACTICAL MANEUVER THAT COULD HELP BUILD SUPPORT FOR HIS POSITION WHILE FRUSTRATING HIS OPPONENTS NAMELY HE HASN'T ISSUED THE DECREES HE DESCRIBED SATURDAY TAKING DICTATORIAL POWERS AND CALLING FOR A REFERENDUM THE COURT SAID IT COULDN'T RULE ON THE PRESIDENT'S STATEMENT BECAUSE IT HADN'T RECEIVED THE WRITTEN TEXT OF THE DECREES MR ZORKIN AND OTHERS CHARGED THAT BY NOT RELEASING THE DECREES THE PRESIDENT WAS OBFUSCATING BUT MR YELTSIN'S LAWYER ANDREI MAKAROV SAID IT WAS A TACTICAL STEP OF THE PRESIDENT'S TO FIND OUT WHO IS TRULY LOYAL TO HIM WHAT YOU HEARD WAS HIS POLITICAL PLATFORM WHAT MUST BE DONE WHAT THE PRESIDENT MUST DO AND WHAT HE EXPECTS FROM US SAID MR MAKAROV IT IS A THEATER OF THE ABSURD WHEN AN UNPUBLISHED DECREE IS EVALUATED IN THE CONSTITUTIONAL COURT AS A LEGAL CASE AT A RALLY OF YELTSIN SUPPORTERS LAST NIGHT DEPUTY PRIME MINISTER VLADIMIR SHUMEIKO SAID THAT THE PRESIDENT WILL FIRE ALL MEMBERS OF THE ADMINISTRATION WHO HAVE OPPOSED HIM IN THIS BATTLE THE PRESIDENT FIRED TWO REGIONAL GOVERNORS OVER THE WEEKEND AND YESTERDAY JUSTICE MINISTER NIKOLAI FYODOROV RESIGNED HE WAS THE ONLY MINISTER WHO DIDN'T SIGN THE GOVERNMENT'S STATEMENT OF SUPPORT FOR THE PRESIDENT SUNDAY MR YELTSIN'S SUPPORTERS ALSO STARTED TO ORGANIZE FOR NEXT MONTH'S PLEBESCITE SEVERAL THOUSAND PEOPLE PACKED A CENTRAL MOSCOW THEATER FOR THE RALLY CHANTING SUPPORT FOR MR YELTSIN AND DENOUNCING MR ZORKIN MR KHASBULATOV AND VICE PRESIDENT ALEXANDER RUTSKOI FACED WITH A CLEAR ENEMY TO ROUT THE RALLY HAD AN UPBEAT MOOD THAT HAS HARDLY BEEN SEEN AMONGST YELTSIN SUPPORTERS DURING THEIR PAST YEAR OF DECLINING FORTUNES MR SHUMEIKO OUTLINED PLANS INCLUDING CALLING FOR OBSERVERS FROM THE UNITED NATIONS THAT MADE IT CLEAR HE EXPECTS THE VOTE WOULD BE HELD IN A HOSTILE ENVIRONMENT MR SHUMEIKO SAID THAT THE PLEBESCITE WOULD INCLUDE TWO QUESTIONS ONE CONCERNING FAITH IN THE PRESIDENT AND VICE PRESIDENT AND ONE ON A NEW CONSTITUTION THE VERSION OF THE NEW CONSTITUTION THAT WILL BE USED IS ONE THAT HAS BEEN WORKED OUT OVER THE PAST THREE YEARS BY A PARLIAMENTARY COMMISSION IF THE CONGRESS IMPEDES THE CARRYING OUT OF THE PLEBESCITE HE SAID THE PRESIDENT WILL TAKE IT TO THE PEOPLE IN A NEW GUISE AS PART OF A NATIONWIDE DISCUSSION FUNDING FOR THE PLEBESCITE WILL BE PROVIDED BY A SPECIAL FUND THAT HAS ALREADY BEEN ESTABLISHED ORGANIZERS PASSED OUT SLIPS OF PAPERS PRINTED WITH THE NUMBER AND ADDRESS OF A SPECIAL BANK ACCOUNT READY TO ACCEPT DONATIONS TO THE FUND IN A CHICAGO SPEECH AIMED AT RALLYING US SUPPORT FOR RUSSIA MR CHRISTOPHER WARNED THAT IF RUSSIA WERE TO FALL INTO ANARCHY OR RETURN TO DESPOTISM THE US WOULD PAY A FRIGHTENING PRICE NOTHING LESS IS INVOLVED THAN THE POSSIBILITY OF A RENEWED NUCLEAR THREAT HIGHER DEFENSE BUDGETS SPREADING INSTABILITY AND A DEVASTATING SETBACK FOR THE WORLDWIDE DEMOCRATIC MOVEMENT HE SAID MR CHRISTOPHER SOUNDED ONE NOTE OF CAUTION URGING MR YELTSIN AGAINST USING ANY MORE EXTREME MEASURES TO MAINTAIN HIS RULE ON THAT BASIS RUSSIA CAN BE ASSURED OF OUR FULL SUPPORT IN THE DIFFICULT DAYS AHEAD MR CHRISTOPHER SAID JAPAN MEANWHILE APPEARED TO BE MOVING TOWARD A RUSSIAN AID PROGRAM OF ITS OWN JAPAN'S RESISTANCE HAS BEEN A KEY OBSTACLE TO US EFFORTS TO PUT TOGETHER AN INTERNATIONAL BAILOUT PACKAGE REPRESENTATIVES FROM THE GROUP OF SEVEN NATIONS ARE LIKELY TO MEET IN TOKYO IN MIDAPRIL TO WORK OUT DETAILS OVER THE WEEKEND THE DAILY NIHON KEIZAI SHIMBUN REPORTED JAPAN IS SUGGESTING THAT THE G7 CREATE A 10 BILLION FUND OF LOANS AND GRANTS TO RUSSSIA AND IS PREPARED TO PUT UP A THIRD ELISABETH RUBINFIEN IN MOSCOW AND DAVID WESSEL IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9303230045 930323 BUSINESS BRIEFS BURLINGTON NORTHERN INC PLANS TO BUY 1000 JUMBO COVERED HOPPERS OR HIGHERCAPACITY GRAIN CARS FOR ITS RAIL FLEET FROM TRINITY INDUSTRIES INC FOR 45 MILLION HAWKEYE BANCORP AND FIRST DUBUQUE CORP THE HOLDING COMPANY FOR FIRST NATIONAL BANK OF DUBUQUE HAVE HAD THEIR MERGER APPROVED BY SHAREHOLDERS HAWKEYE WILL ISSUE THREE SHARES FOR EVERY SHARE OF FIRST DUBUQUE RB&W CORP AGREED TO SELL ITS SCREW MANUFACTURING OPERATIONS BUYER AND TERMS WEREN'T DISCLOSED COMPUADD COMPUTER CORP REDUCED PRICES ACROSS ITS PRODUCT LINE BY AS MUCH AS 23 AMERICAN CYANAMID CO'S AGRICULTURAL RESEARCH DIVISION SIGNED A COLLABORATION AGREEMENT THAT WILL ENABLE RESEARCHERS TO SCREEN COMPOUNDS RAPIDLY TO DISCOVER NEW DRUGS TERMS WEREN'T DISCLOSED CAROLINA FIRST CORP COMPLETED THE PURCHASE OF 12 BRANCHES FROM REPUBLIC NATIONAL BANK A UNIT OF CLOSELY HELD RESOURCE BANCSHARES CORP TERMS WEREN'T DISCLOSED 9303230044 930323 INTERNATIONAL RUSSIAN DISCORD RAISES CONCERN ABOUT ARSENAL EXPERTS ON NUCLEAR SYSTEM SEE PROBLEMS IF MOSCOW LOSES CENTRAL CONTROL BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TENSE CONFRONTATION BETWEEN THE PRESIDENT AND PARLIAMENT OF RUSSIA COULD IMPAIR MOSCOW'S CENTRALIZED CONTROL OVER ITS SPRAWLING NUCLEAR ARSENAL WHICH STILL CONTAINS ABOUT 30000 WARHEADS AND THAT COULD BRING ON TWO DIFFERENT NUCLEAR CRISES INSIDE AND OUTSIDE THE FORMER SOVIET UNION THOSE ARE THE CONCLUSIONS OF TWO EXPERTS WHO HAVE STUDIED THE COMPLEX AND SECRETIVE ELECTRONIC SYSTEM BUILT BY SOVIET LEADERS TO CONCENTRATE NUCLEAR CONTROL IN THE HANDS OF KREMLIN CHIEFS DURING ANY CONCEIVABLE COLD WAR SITUATION THE SYSTEM'S MAIN WEAKNESS SAY BRUCE BLAIR A US ANALYST AND VALERY YARYNICH A RETIRED RUSSIAN COLONEL WHO HELPED BUILD THE SYSTEM IS THAT IT WASN'T DESIGNED TO COPE WITH CHAOS IN MOSCOW MR YARYNICH 55 YEARS OLD IS AN ELECTRICAL ENGINEER AND VETERAN OF MORE THAN 30 YEARS IN THE SOVIET ARMY'S STRATEGIC ROCKET FORCES HE WORRIES THAT THE SHOWDOWN BETWEEN RUSSIAN PRESIDENT BORIS YELTSIN AND HIS LEGISLATIVE FOES WILL BE USED AS A PRETEXT BY LEADERS OF NOWINDEPENDENT UKRAINE TO CUT MOSCOW'S ELECTRONIC CONTROLS OVER 176 SOVIETBUILT MISSILES STILL OPERATIONAL IN UKRAINE THE LOSS OF CONTROL WOULD MAKE IT IMPOSSIBLE FOR THE RUSSIAN MILITARY'S GENERAL STAFF WHICH EXERCISES DAYTODAY CONTROL OVER THE MISSILES TO KNOW IF UKRAINE RETARGETS THE MISSILES ON RUSSIA WARNS MR YARYNICH SUCH A CONDITION WOULD HEIGHTEN TENSION BETWEEN RUSSIA AND THE NEXT MOST POWERFUL OF THE FORMER SOVIET REPUBLICS UKRAINE WHICH HAS SS24 AND SS19 MISSILES THE SOVIET UNION'S MOST POTENT AND MODERN WEAPONS MR BLAIR A BROOKINGS INSTITUTION RESEARCHER HAS JUST PUBLISHED A BOOK THE LOGIC OF ACCIDENTAL NUCLEAR WAR ON THE RUSSIAN SYSTEM HE BELIEVES A SECOND TYPE OF CRISIS COULD EVOLVE IF A POWER STRUGGLE LEAVES IT UNCLEAR WHO IS RUNNING THE KREMLIN IF THAT HAPPENS HE SAYS THE GENERAL STAFF COULD ANNOINT A LEADER BECAUSE IT CONTROLS THE CODES AND THE COMMUNICATIONS SYSTEM THAT LAUNCH NUCLEAR FORCES IN THE US CONTROL OVER THE LAUNCH OF NUCLEAR WEAPONS CAN BE WIDELY DISPERSED DURING A CRISIS BUT RUSSIA'S REMAINS RIGIDLY EMPLACED IN DEEP BUNKERS IN AND AROUND MOSCOW HE SAYS THERE IS NO PARALLELISM BETWEEN THE US AND RUSSIAN SYSTEMS MR BLAIR SAYS ADDING THAT THE US HAS LAUNCH CREWS TO CARRY OUT LAUNCH ORDERS WHILE RUSSIA CAN CONFIGURE ITS SYSTEM SO MISSILES CAN BE LAUNCHED DIRECTLY FROM THE KREMLIN MR BLAIR ONCE COMMANDED A US AIR FORCE MINUTEMAN LAUNCH COMPLEX IN MONTANA MR YARYNICH SAYS THAT IF MR YELTSIN IS IMPEACHED THE RUSSIAN MILITARY WOULD NOT ACT CONTRARY TO THE WILL OF PARLIAMENT BUT HE PREDICTS THAT TENSIONS WILL RISE AMONG MOSCOW'S NUCLEAR NEIGHBORS THE FORMER SOVIET REPUBLICS OF UKRAINE BELARUS AND KAZAKHSTAN AND IN THE US IF A PROLONGED STRUGGLE FOR CONTROL OF THE KREMLIN CLOUDS THE MATTER OF SUCCESSION WORRIES ABOUT A NUCLEAR THREAT FROM ABROAD COULD RAPIDLY ESCALATE TENSIONS IN MOSCOW HE SAYS BECAUSE THE KREMLIN'S EARLY WARNING RADAR SYSTEM IS PARTIALLY BLINDED 50 OF THE RADARS IN THE SYSTEM ARE NOW LOCATED OUTSIDE RUSSIA MR YARYNICH SAYS RUSSIAN EXPERTS EVEN WORRY ABOUT A CIVIL WAR SITUATION IN THEIR COUNTRY THAT MIGHT TEMPT THE US TO TRY TO SAVE THE WORLD AND NEUTRALIZE RUSSIA'S MISSILES BY KNOCKING OUT ITS NUCLEAR COMMAND CENTERS WITH HIGHLY ACCURATE CONVENTIONAL WEAPONS WE HAVE HAD SEVERE BUDGET CUTS AND IT MAY APPEAR THAT THE CONTROL SYSTEM IS GETTING WEAKER MR YARYNICH SAYS DESPITE WHAT HAS HAPPENED THIS SYSTEM IS SO ROBUST THAT IT WOULD SURVIVE SUCH AN ATTACK AND IT WOULD LEAD TO AN OPPOSITE RESULT HE SAYS DESCRIBING THE POSSIBILITY OF A RETALIATORY RUSSIAN NUCLEAR STRIKE IN THE 1980S ACCORDING TO THE TWO EXPERTS CONTROLS OVER BOTH THE US AND SOVIET SYSTEMS WERE REDESIGNED TO PERMIT A RAPID LAUNCH WHEN THERE WAS EARLY WARNING OF AN ENEMY STRIKE TO CONTROL THE HAIRTRIGGER SITUATION IN MOSCOW MR YARYNICH SAYS HE HOPES RUSSIAN LEADERS WILL SOON LIFT THE SHROUD OF SECRECY OVER WHO CONTROLS THE BUTTON SO THE RUSSIAN PUBLIC CAN KEEP TRACK OF POWER MOVES DURING A CRISIS 9303230043 930323 CLEANUP CREWS IN WAKE OF DISASTERS SOME FIRMS PROSPER DOING THE REBUILDING PETER BOOKHOLT SEES 10 YEARS OF WORK IN FLORIDA AREAS BATTERED BY THE HURRICANE VYING FOR TRADE CENTER TRADE BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI THANKS TO HURRICANE ANDREW THE WORLD TRADE CENTER BOMBING AND THE BLIZZARD OF '93 BUSINESS IS BOOMING FOR PEOPLE LIKE PETER BOOKHOLT MR BOOKHOLT OWNS A TEXASBASED CONSTRUCTION COMPANY LARSON & ASSOCIATES THAT SPECIALIZES IN MOPPING UP AFTER DISASTERS AS HURRICANE ANDREW ROARED THROUGH HERE LAST AUGUST HE WAS IN CALIFORNIA CHECKING ON WORK FROM THE 1992 LOS ANGELES RIOTS AND THE 1991 OAKLAND FIRE WITHIN DAYS HE HOPPED A FLIGHT TO MIAMI NOW THE 48YEAROLD MR BOOKHOLT HAS A TEAM OF ABOUT 30 FULLTIME EMPLOYEES HERE HE EXPECTS BETWEEN 12 MILLION AND 15 MILLION OF ANDREWRELATED CONSTRUCTION WORK THIS YEAR THAT IS A DROP IN THE BUCKET SET AGAINST THE 155 BILLION THAT INSURERS NOW ESTIMATE ANDREW MAY COST THEM BUT IT IS SIGNIFICANT FOR MR BOOKHOLT'S COMPANY WHOSE REVENUE TYPICALLY RUNS IN THE NEIGHBORHOOD OF 35 MILLION A YEAR HE PREDICTS PROBABLY 10 YEARS' WORTH OF WORK FROM THE HURRICANE MEANWHILE HE ALREADY IS TALKING WITH INSURANCE COMPANIES ABOUT REBUILDING FROM THE BLIZZARD AND STORMS THAT BATTERED MUCH OF THE EAST COAST EARLIER THIS MONTH AN INSURANCE CONSULTING FIRM HE OFTEN WORKS WITH HUDSON INTERNATIONAL GROUP IS OVERSEEING THE CLEANUP OF DEAN WITTER'S 30 FLOORS OF OFFICES IN THE WORLD TRADE CENTER ALTHOUGH SO FAR MR BOOKHOLT HASN'T PICKED UP ANY BUSINESS THERE AND TODAY MR BOOKHOLT PLANS TO BE IN CHICAGO ESTIMATING THE DAMAGE IN A MOSQUE FIRE MR BOOKHOLT SAYS DEMAND FOR DISASTER WORK WHICH HE COMBINES WITH A MORE CONVENTIONAL CONSTRUCTION BUSINESS IS CONSTANT THERE ARE DISASTERS GOING ON ALL THE TIME HE ADDS BUT THEY'RE OFTEN THE LITTLE DISASTERS YOU NEVER SEE IN THE PAPERS A CHURCH BURNS DOWN AN APARTMENT COMPLEX CATCHES ON FIRE IT'S A DAILY THING THAT THING HAS GIVEN RISE TO AN INDUSTRY THAT SPECIALIZES IN THE PECULIAR NEEDS OF REBUILDING AFTER DISASTERS IT IS AN AMORPHOUS GROUP THAT RANGES FROM PARTTIME CONSULTANTS TO SIZABLE CORPORATIONS MANY OF WHOM HAVE CLOSE TIES TO THE INSURANCE INDUSTRY IT INCLUDES SPECIALISTS IN WATERDAMAGE REPAIR FOR INSTANCE OR DOCUMENT RESTORATION AND GENERALISTS THE SIZE AND SHAPE OF THE INDUSTRY ARE BLURRED BECAUSE BIG DISASTERS ATTRACT FLYBYNIGHT OUTFITS AND BECAUSE MANY REPUTABLE BUILDING AND REPAIR CONCERNS WHILE NOT SPECIALIZING IN DISASTERS DO DISASTERRELATED JOBS IN THE NORMAL COURSE OF BUSINESS BUT LATELY THE DISASTER TRADE HAS BEEN PUT UNDER THE SPOTLIGHT BY A STRING OF MAJOR TRAGEDIES THE WORLD TRADE CENTER IS NOT ROUTINE HURRICANE ANDREW IS NOT ROUTINE THEY ARE THINGS THAT PRESENT IMPOSSIBLE SITUATIONS SAYS FRANK LIVELY PRESIDENT OF MF BANK RESTORATION CO A NORCROSS GA COMPANY THAT RECENTLY SIGNED A CONTRACT WITH THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY TO OVERSEE CLEANING AND RESTORATION OF ITS WORLD TRADE CENTER BUT THAT'S WHAT WE DO HE CONTINUES WE DEAL WITH THE IMPOSSIBLE MOST OF THE TIME ALTHOUGH DISASTERS USUALLY DON'T REFLECT THE ECONOMY THE DISASTER TRADE SOMETIMES DOES WHEN THE ECONOMY GOES DOWN PEOPLE TEND TO CASH OUT THEIR LOSSES AND DO REPAIRS THEMSELVES SAYS MAUREEN MCCORMICK SECRETARYTREASURER OF FIREDEX INC AN ALLENTOWN PA COMPANY THAT DOES FIREREPAIR WORK THE JOB MAY NOT BE DONE AS WELL BUT THEY'LL SETTLE FOR IT BECAUSE THEY HAVE THE INSURANCE CHECK IN THEIR HAND PART OF THE WORK IS HUMAN RELATIONS YOU'RE DEALING WITH PEOPLE WHO'VE GONE THROUGH A TREMENDOUS TRAUMA SAYS BEN WEYUKER A SOUTH FLORIDA CONTRACTOR HIRED AFTER ANDREW TO OPEN AN OFFICE HERE FOR DR HORTON INC A TEXASBASED BUILDER THEY WERE HAVING TO DEAL WITH AN INSURANCE COMPANY THEY NEVER HAD TO DEAL WITH BEFORE OTHER THAN MAKING A PREMIUM PAYMENT MR WEYUKER SAYS PEOPLE DIDN'T EVEN KNOW WHERE TO START HORTON HAS SET UP AN OFFICE IN A TRAILER IN THE BADLY DAMAGED COUNTRY WALK NEIGHBORHOOD SOUTH OF MIAMI AND OFFERS TO HANDLE EVERYTHING FROM NEGOTIATING WITH A HOMEOWNER'S INSURER TO BUILDING A NEW HOUSE CORPORATIONS NEED HELP TOO HUDSON INTERNATIONAL THE WAYNE PA FIRM OVERSEEING THE DEAN WITTER CLEANUP SEES AN EXPANDING MARKET IN ACTING AS A GOBETWEEN WITH COMPANIES AND THEIR INSURERS ON REBUILDING FROM MAJOR PROPERTY LOSSES MANY DISASTER SPECIALISTS CONCEDE THAT THEY COULD BE SEEN AS VULTURES OF SORTS HOW GOOD OUR BUSINESS IS REALLY DEPENDS ON HOW BAD BUSINESS IS FOR SOMEBODY ELSE MR BOOKHOLT OF LARSON & ASSOCIATES ACKNOWLEDGES BUT THEIR SERVICES CLEARLY ARE IN DEMAND NOBODY WAS PREPARED FOR THE MAGNITUDE OF DAMAGE MR BOOKHOLT SAYS IN TERMS OF PROPERTY DAMAGE ANDREW IS THE COSTLIEST NATURAL DISASTER ON RECORD ACCORDING TO THE HURRICANE INSURANCE INFORMATION CENTER AN INDUSTRYSPONSORED GROUP HERE ANDREW GENERATED SOME 625000 CLAIMS IN SOUTH FLORIDA AND LOUISIANA SO FAR INSURERS HAVE PAID OUT ABOUT 13 BILLION THE CASH IS ONLY BEGINNING TO SPARK RECONSTRUCTION MANY AREAS SOUTH OF HERE STILL RESEMBLE BOMBEDOUT WAR ZONES REBUILDING REALLY IS VERY VERY SLOW SAYS BILL STOKES PRESIDENT OF MIAMIDADE COMMUNITY COLLEGE'S KENDALL CAMPUS WHICH IS IN A BATTERED AREA PSYCHOLOGICALLY PEOPLE ARE JUST SORT OF DOWN NONETHELESS REBUILDING HAS STARTED AND MANY EXPECT A BOOM MARK VITNER AN ECONOMIST AT JACKSONVILLEBASED BARNETT BANKS INC PREDICTS THAT LOCAL HOUSING STARTS WILL MORE THAN DOUBLE THIS YEAR TO MORE THAN 20000 AND THAT BUILDERS WILL HIRE CLOSE TO 20000 WORKERS CHARLES LENNON EXECUTIVE DIRECTOR OF THE BUILDERS ASSOCIATION OF SOUTH FLORIDA SAYS THIS FAR OUTSTRIPS LOCAL BUILDERS' CAPACITY ALTHOUGH MANY LOCAL BUILDERS AND LICENSING BOARDS HAVE RESISTED LETTING OUTSIDERS SHARE IN THE WORK MR LENNON ADVOCATES JUST THAT THE LOCAL INDUSTRY CAN'T HANDLE IT HE SAYS THE BEST THING IN THE WORLD FOR THE LOCAL INDUSTRY IS HONEST COMPETITION THAT COMES IN FROM OUTSIDE WHICH BRINGS US TO PETER BOOKHOLT OVER THE PAST COUPLE OF DECADES HE HAS BUILT A CONVENTIONAL CONSTRUCTION BUSINESS INTO AN ALLPURPOSE DISASTER SHOP OFFERING EVERYTHING FROM DAMAGE ESTIMATES TO RECONSTRUCTION ITSELF HIS NICHE IS INSURANCERELATED WORK ABOUT 90 OF HIS BUSINESS IF A DISASTER DISTORTS LOCAL MARKETS FOR SUPPLIES OR EQUIPMENT MR BOOKHOLT TRUCKS IN WHAT IS NEEDED FROM AFAR HE PREFERS TO HIRE LOCALLY BUT IF HE CAN'T HE TAPS HIS OPERATIONS ELSEWHERE HE DID THAT RECENTLY IN RIOTTORN PARTS OF LOS ANGELES YOU COULDN'T GET LOCAL HELP HE SAYS SO WE BROUGHT PEOPLE FROM TEXAS HE ADDS I CAN MAN A JOB ANY PLACE IN THE COUNTRY WITHIN 24 HOURS WE'VE DONE IT SO LONG WE KNOW WHAT WE NEED WHEN MR BOOKHOLT FLEW HERE THE WEEK AFTER ANDREW HE ALREADY HAD A COMMITMENT FOR WORK HOURS AFTER THE HURRICANE STRUCK HE GOT A PHONE CALL FROM HUDSON INTERNATIONAL'S CHIEF OPERATING OFFICER PHILIP W WEBSTER WITH WHOM HE HAD WORKED AFTER THE OAKLAND FIRE MR BOOKHOLT FLEW TO MIAMI WITH A FEW ESTIMATORS AND OTHER STAFFERS AND BEGAN SEEKING OUT INSURERS CLAIMSADJUSTING FIRMS AND DEVELOPERS WE MADE OUR INITIAL CONTACTS WITH WHOMEVER WE COULD FIND HE SAYS BUT IT WAS ALMOST IMPOSSIBLE TO FIND ANYBODY COMMUNICATIONS WERE TERRIBLE HE BEGAN ADDING LOCAL STAFF HE HIRED A STATELICENSED CONTRACTOR FROM FORT MYERS ON FLORIDA'S WEST COAST BECAUSE HIS OWN FLORIDA CONTRACTING LICENSE HAD LAPSED HE HIRED A STATELICENSED ARCHITECT FROM MIAMI FOR MARKETING HE HIRED A FORMER REALESTATE MAN JACK PAGET WHO HE SAYS KNOWS EVERYBODY IN TOWN BY THE SECOND WEEK WORK BEGAN COMING IN FROM HUDSON WHICH INSURANCE COMPANIES HAD RETAINED TO HELP SETTLE MAJOR CLAIMS HUDSON HIRED LARSON MR BOOKHOLT'S FIRM TO DO GUARANTEED ESTIMATES OF THE COST OF WORK THAT HUDSON'S ENGINEERS DEEMED NECESSARY ON DAMAGED PROPERTIES LARSON IS PAID BY THE HOUR FOR ITS ESTIMATES BUT ITS GUARANTEE MEANS THAT LARSON WHICH IS BONDED WILL DO THE WORK ITSELF AT THE ESTIMATE PRICE IF REQUESTED MR BOOKHOLT SAYS LARSON WINDS UP DOING THE WORK ONLY MAYBE 20 OF THE TIME BUT HE SAYS ITS GUARANTEE HELPS CONTAIN THE PRICE AND KEEP SCAMMING DOWN ON ONE WINTER'S DAY FOR INSTANCE MR BOOKHOLT'S CREW WAS INVESTIGATING DAMAGE TO A MIAMI BEACH MANSION THE OWNER AND HIS CONTRACTOR HAD PRESENTED THE INSURER WITH A REPAIR ESTIMATE OF 11 MILLION AS MR BOOKHOLT WENT THROUGH THE HOUSE WITH THE CONTRACTOR HE BEGAN FINDING DISCREPANCIES FOR ONE ROOM THE CONTRACTOR HAD INCLUDED A CHARGE FOR RECARPETING A FLOOR THAT WAS TILED RATHER THAN CARPETED IN ANOTHER THE CONTRACTOR HAD LISTED ABOUT 9000 OF REPAIRS MR BOOKHOLT PUT THE COST AT 375 IN THE END MR BOOKHOLT ESTIMATED THE REPAIRS AT JUST UNDER 500000 AND HE SAYS THE HOMEOWNER SETTLED FOR THAT MR BOOKHOLT SAYS VIRTUALLY ALL HIS WORK HERE SO FAR HAS COME FROM INSURANCE INSPECTIONS MORE THAN 7000 UNITS IN ALL MAINLY INDIVIDUAL APARTMENTS BUT ALSO HOUSES AND COMMERCIAL STRUCTURES BUT HE HAS BEGUN PICKING UP OTHER JOBS INCLUDING A CHURCH RECONSTRUCTION AND A 15 MILLION CONDOMINIUM RESTORATION PROJECT HE FIGURES THAT TYPE OF WORK IS JUST NOW BEGINNING TO KICK IN WE'RE GETTING CALLS EVERY DAY NOW FROM PEOPLE DRIVING BY AND SEEING OUR SIGNS AND ASKING FOR BIDS ON WORK HE SAYS EVIDENTLY THEY'VE SETTLED WITH THEIR INSURANCE COMPANIES AND THEY'RE GETTING READY TO BUILD I THINK SIX MONTHS FROM NOW IT WILL GET EVEN BUSIER MR BOOKHOLT GOT INTO THE DISASTER BUSINESS BY ACCIDENT A NEW JERSEY NATIVE HE MOVED TO FLORIDA IN 1965 AND STARTED A MARINECONSTRUCTION BUSINESS BUILDING SUCH THINGS AS SEA WALLS IN FORT MYERS ONE THING LED TO ANOTHER HE SAYS AND HIS SMALL SUBCONTRACTING FIRM GREW INTO A GENERAL CONTRACTOR OPERATING IN SEVERAL STATES IN 1982 HE MOVED HIS BASE TO BEDFORD TEXAS ALONG THE WAY THE COMPANY SLIPPED INTO DISASTER WORK IT'S ONE OF THOSE THINGS WHERE PEOPLE CALL YOU UP WITH REFERENCE TO SOME JOB AND IT JUST GROWS MR BOOKHOLT SAYS HE SAYS HE ISN'T EVEN SURE WHAT HIS FIRST DISASTERRELATED PROJECT WAS THOUGH HE GUESSES IT INVOLVED STORMDAMAGED STRUCTURES BACK IN HIS FORT MYERS DAYS HIS BUSINESS GOT A MAJOR LIFT IN THE 1970S WHEN IT BEGAN DOING WORK FOR CONSULTANTS HIRED BY INSURERS THE WORK OFTEN INVOLVED INVESTIGATING SURETY CLAIMS IN WHICH FOR EXAMPLE AN INSURER WAS HAVING TO PAY UP AFTER A BUILDER THAT IT HAD BONDED HAD FAILED TO COMPLETE A PROJECT MR BOOKHOLT WOULD PREPARE A GUARANTEED ESTIMATE OF THE COST OF COMPLETING THE JOB AND THE INSURER WOULD USE IT IN SETTLING THE CLAIM MR BOOKHOLT WOULD OFTEN DO THE CONSTRUCTION WORK AS WELL IT WAS A QUICK JUMP FROM THAT TYPE OF WORK TO DOING DISASTERRELATED ESTIMATES FOR INSURERS ALL OF THIS MAKES FOR GOOD BUSINESS BUT HARD WORK MR BOOKHOLT CONTINUALLY SHUTTLES FROM COAST TO COAST AND THESE DAYS GETS HOME TO TEXAS ONLY ABOUT ONE WEEK IN FIVE HE SAYS HE TYPICALLY SPENDS THREE WEEKS HERE A WEEK IN CALIFORNIA A WEEK IN TEXAS THEN BACK TO FLORIDA INEVITABLY HE HAS THE TRAPPINGS OF AN ITINERANT LIFE HIS BEEPER IS HOOKED UP TO AN 800 NUMBER HE TRAVELS WITH A MOBILE PHONE AND MORE THAN SIX MONTHS AFTER HURRICANE ANDREW HE AND HIS STAFF ARE STILL OPERATING OUT OF SOME CRAMPED GUEST ROOMS IN THE MIAMI AIRPORT INN 9303230042 930323 RAWSTEEL PRODUCTION FELL 22 LAST WEEK FROM PREVIOUS WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 22 LAST WEEK TO 1770000 TONS FROM 1809000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT FELL 33 FROM THE 1831000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 805 OF ITS CAPABILITY LAST WEEK COMPARED WITH 823 THE PREVIOUS WEEK AND 832 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9303230041 930323 FOREIGN EXCHANGE DOLLAR GENERALLY EDGES UP AFTER MARKET PAYS BRIEF ATTENTION TO RUSSIAN CRISIS BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE LATEST ESCALATION IN RUSSIA'S POWER STRUGGLE HELD THE FOREIGN EXCHANGE MARKET'S ATTENTION ONLY BRIEFLY YESTERDAY AFTER EARLY GAINS AGAINST EUROPEAN CURRENCIES AS INVESTORS SOUGHT A HAVEN CURRENCY AMID THE CRISIS THE DOLLAR SLIPPED BACK GENERALLY ENDING ONLY SLIGHTLY HIGHER MEANWHILE THE YEN JUMPED TO A NEW POSTWORLD WAR II HIGH AGAINST THE DOLLAR BUT DEALERS SAID THE LACK OF FUNDAMENTAL NEWS TO BACK IT UP ALONG WITH THE FEAR OF CENTRAL BANK INTERVENTION ERODED THE YEN'S GAINS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16380 MARKS UP FROM 16340 MARKS LATE FRIDAY IN NEW YORK BUT THE US CURRENCY ALSO WAS CHANGING HANDS AT 11563 YEN DOWN FROM 11610 YEN STERLING WAS TRADING AT 14870 OFF FROM 14915 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16353 MARKS AND AT 11545 YEN THE DOLLAR ROSE EARLY IN ASIAN TRADING AS MARKET PARTICIPANTS REFLEXIVELY DUMPED MARKS IN THE WAKE OF NEWS OVER THE WEEKEND FROM RUSSIA AFTER ANNOUNCING IN A SPEECH SATURDAY THAT HE HAS ASSUMED SPECIAL POWERS RUSSIAN PRESIDENT BORIS YELTSIN NOW FACES THE THREAT OF IMPEACHMENT BY OPPONENTS IN THE PARLIAMENT DOMINATED BY FORMER COMMUNISTS THE TENSIONS CONTRIBUTED TO SELLOFFS IN STOCK MARKETS ACROSS EUROPE THE MARK IS THE CURRENCY THAT USUALLY IS HURT THE MOST BY TURMOIL IN RUSSIA BECAUSE OF BOTH THE HUGE LOANS TO RUSSIA FROM GERMAN BANKS AND THE FEAR THAT GERMANY WOULD BE ON THE FRONT LINE IF RUSSIA ERUPTED INTO CIVIL WAR BUT THE CURRENCY MARKETS HAVE BECOME SOMEWHAT INURED TO THE TWISTS AND TURNS OF RUSSIAN POLITICS DEALERS SAID IT PROVIDES A LITTLE STIMULUS FOR THE MARKET AND THEN THAT'S IT SAID ALEXIS MCCARTHY A CORPORATE TRADER AT BANQUE INDOSUEZ AFTER TENSIONS IN RUSSIA FAILED TO PUSH THE DOLLAR SHARPLY HIGHER AGAINST THE MARK DEALERS SAID MARKET PARTICIPANTS TOOK PROFITS DRIVING THE US CURRENCY DOWN JAMES MCGROARTY SENIOR VICE PRESIDENT FOREIGN EXCHANGE AT GREENWICH CAPITAL MARKETS IN CONNECTICUT SAID THAT ALTHOUGH MARKET PARTICIPANTS ARE WATCHING THE POWER STRUGGLE CLOSELY IT DOESN'T FEEL LIKE A MARKET THAT'S TERRIBLY NERVOUS DEALERS SAID THE GRADUAL ACCUMULATION OF TENSION IN RUSSIA HAS GIVEN THE MARKET TIME TO ADJUST WITHOUT SHARP MOVES DAVID WILSON A VICE PRESIDENT AT GIROCREDIT BANK SAID THE DOLLAR HASN'T CONVERTED RECENT WORLD CRISES INTO LASTING STRENGTH LEAVING MARKET PARTICIPANTS RELUCTANT TO TAKE BETS ON RUSSIA UNTIL THE SITUATION DETERIORATES SIGNIFICANTLY UNLESS YOU GET SERIOUS BLOODSHED HE SAID I DON'T THINK IT'S GOING TO HAVE A LOT OF IMPACT ON THE MARKET HE ADDED THAT THE PRECIPITOUS PLUNGE IN THE DOLLAR LATE LAST WEEK AFTER THE BUNDESBANK'S RATE CUT DISAPPOINTED PARTICIPANTS ALSO SAPPED DEMAND FOR DOLLARS THAT'S REALLY TAKEN THE STEAM OUT OF THE UPSIDE FOR THE DOLLAR HE SAID BUT THE DOLLAR'S WEAKNESS DIDN'T TURN INTO A ROUT DEALERS SAID AS LIGHT BUYING INTEREST HELD THE FLOOR OF THE TRADING RANGE STEADY AGAINST THE YEN THE DOLLAR FOUND SIMILAR SUPPORT BUT NOT BEFORE DROPPING TO A NEW HISTORIC LOW DEALERS SAID SPECULATIVE SELLING PUSHED DOWN THE DOLLAR TO 11538 YEN BELOW THE PREVIOUS LOW OF 11560 YEN SET FRIDAY BUT MR MCGROARTY SAID DEMAND FOR DOLLARS FROM US CORPORATE CUSTOMERS AROUND THE LOWS REVERSED THE SELLOFF IN ADDITION HE NOTED THE FEAR THAT CENTRAL BANKS MIGHT STEP IN TO SUPPORT THE DOLLAR MADE TRADERS AND DEALERS HESITANT TO PUSH THE DOLLAR TOO FAR 9303230040 930323 SENATOR OPPOSES ANTITRUST PLANS FOR HEALTH CARE BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE ANTITRUST SUBCOMMITTEE CHAIRMAN SAYS THE WHITE HOUSE SHOULDN'T GRANT ANTITRUST EXEMPTIONS TO THE HEALTHCARE INDUSTRY IN AN EFFORT TO RESTRAIN HEALTHCARE COSTS SEN HOWARD METZENBAUM D OHIO SAID HE IS PARTICULARLY CONCERNED ABOUT A REQUEST FROM THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION FOR AN EXEMPTION IF AN EXEMPTION IS GRANTED MEMBERS OF THE PMA A TRADE ASSOCIATION FOR DRUG COMPANIES WOULD LIMIT ANNUAL AVERAGE PRICE INCREASES TO THE RATE OF INFLATION THEY COULDN'T SET PRICES AS A GROUP WITHOUT AN ANTITRUST EXEMPTION THE SENATE PANEL WILL HOLD A HEARING TOMORROW ON THE EFFECT OF ANTITRUST LAWS ON HEALTHCARE COSTS MR METZENBAUM SAID HE TOLD CLINTON ADMINISTRATION HEALTH ADVISER IRA MAGAZINER THAT HE WANTS TO BE INVOLVED ADVISED AND CONSULTED ON ANY MATTER THAT COULD AFFECT THE WAY ANTITRUST LAWS ARE APPLIED TO HEALTHRELATED FIRMS MR METZENBAUM SAID HE IS AGAINST LETTING COMPANIES ACT IN CONCERT TO SET PRICES HE WARNED THAT AGREEDTO MAXIMUM PRICES INEVITABLY BECOME MINIMUM PRICES HE SAID HE IS ESPECIALLY UPSET WITH THE PMA REQUEST BECAUSE DRUG MAKERS HAVE RIPPED OFF THE AMERICAN CONSUMER TO AN UNPRECEDENTED DEGREE A PMA SPOKESMAN RESPONDED WE ARE DISAPPOINTED THAT THE SENATOR COULD NOT WAIT UNTIL THE HEARING TO HEAR ALL THE FACTS BEFORE MAKING A DECISION WE HOPE WHEN HE HAS HEARD ALL THE FACTS HE WILL CHANGE HIS MIND THE SENATOR ALSO SAID THAT THE DECLINING MILITARY BUDGET AND THE RESULTING IMPACT ON THE DEFENSE INDUSTRY COULD LEAD TO REQUESTS FOR ANTITRUST EXEMPTIONS FROM COMPANIES DOING BUSINESS WITH THE PENTAGON HE WARNED THAT GRANTING THE PMA REQUEST COULD SET A PRECEDENT ADDING I FEEL CONFIDENT THEY JUSTICE DEPARTMENT OFFICIALS WILL NOT BE TAKEN IN BY THE PMA ON OTHER ISSUES THE SENATOR SAID HE EXPECTS CONGRESS TO CONSIDER A NUMBER OF ANTITRUST ISSUES THIS SESSION INCLUDING TWO THAT WERE DEBATED PREVIOUSLYRETAIL PRICE MAINTENANCE LEGISLATION WHICH WOULD FACILITATE COURT CHALLENGES OF ALLEGED VERTICAL PRICE FIXING AND POSSIBLE MODIFICATIONS TO THE MCCARRANFERGUSON ACT WHICH EXEMPTS THE INSURANCE INDUSTRY FROM FEDERAL ANTITRUST LAWS NEW MATTERS THAT HE SAID WILL RECEIVE CONGRESSIONAL ATTENTION INCLUDE LEGISLATION TO REMOVE PROFESSIONAL BASEBALL'S 70YEAROLD EXEMPTION FROM ANTITRUST LAW THE BILL WAS INTRODUCED EARLIER THIS MONTH SUPPORTERS SAID IT WOULD PREVENT OWNERS OF BASEBALL TEAMS FROM ACTING AS A MONOPOLY WHEN MAKING SUCH DECISIONS AS THE LOCATIONS OF TEAMS SEN METZENBAUM HAS INTRODUCED LEGISLATION GIVING US COMPANIES THE ABILITY TO SUE FOREIGNBASED CARTELS SUSPECTED OF RAISING PRICES AT HOME SO THEY CAN CUT PRICES IN THE US WHILE US CONSUMERS BENEFIT FROM THE LOWER PRICES INITIALLY THE PRACTICE COULD RUN AMERICAN FIRMS OUT OF THE MARKET IN THE LONG RUN THEREBY REDUCING COMPETITION AND EVENTUALLY LEADING TO HIGHER PRICES 9303230039 930323 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE CZECH REPUBLIC'S DECISION TO WITHHOLD SHARES IN CZECH COMPANIES FROM SLOVAK INVESTORS MAY DELAY THE TRANSFER OF STATE FIRMS' OWNERSHIP TO THE PRIVATE SECTOR AND HAS ALARMED FOREIGN INVESTORS THE CZECH GOVERNMENT WILL FREEZE DISTRIBUTION OF STOCK IN CZECH COMPANIES THAT SLOVAKS BOUGHT IN A VOUCHER PRIVATIZATION PROGRAM THE MOVE IS AIMED AT PRESSURING SLOVAKIA TO MEET CZECH DEMANDS IN TALKS ON DIVIDING THE FORMER CZECHOSLOVAK FEDERATION'S PROPERTY BETWEEN THE TWO SUCCESSOR REPUBLICS SLOVAKIA SAID THE MOVE VIOLATES INTERNATIONAL LAW AND BILATERAL ACCORDS THAT GUARANTEE PROTECTION OF SLOVAK PROPERTY IN THE CZECH REPUBLIC FOREIGN INVESTORS IN PRAGUE CHARACTERIZED THE DECISION AS A NEW POLITICIZATION OF THE CZECH SELLOFFS THE STEP ALSO AFFECTS 85 MILLION CZECH CITIZENS WHO WERE TO BEGIN RECEIVING SHARES NEXT MONDAY AS THE DISTRIBUTION WAS CALLED OFF AND IT DELAYED NEXT MONDAY'S LAUNCH OF PRAGUE'S COMPUTERIZED STOCK EXCHANGE MEANWHILE THOUSANDS OF ENTERPRISES ARE DRIFTING IN THE OWNERSHIP VACUUM THE EUROPEAN COMMUNITY COMMISSION STAFF BEGAN CIRCULATING A NEW PLAN TO OPEN TO COMPETITION THE EC MARKET FOR BASIC TELEPHONE SERVICES MUCH AS THE US DID A DECADE AGO THE DRAFT PROPOSAL TO BE PRESENTED THIS WEEK TO TELECOMMUNICATIONS INDUSTRY EXECUTIVES AND REGULATORS AND NEXT MONTH TO THE COMMISSION CALLS FOR GRADUALLY DISMANTLING LONGHELD STATE MONOPOLIES ON VOICE PHONE SERVICES OVER FIVE YEARS THE PLAN A POLITICAL HOT POTATO COULD RESULT IN LOWER LONGDISTANCE PHONE CHARGES NEW TYPES OF SERVICES AND A HOST OF PRIVATE ENTRANTS IN THE SECTOR CHINA'S CRIME RATE CLIMBED AN AVERAGE OF 79 EACH YEAR SINCE 1988 DESPITE INCREASINGLY TOUGH PENALTIES AND A COURT SYSTEM THAT RARELY FAILS TO CONVICT SUSPECTS A REPORT TO LAWMAKERS BY CHINA'S TOP JUDGE ALSO SAID ECONOMIC CRIMES SUCH AS EMBEZZLEMENT AND BRIBERY HAVE RISEN MARKEDLY AND LARCENY REMAINS THE MOST COMMON REPORTED OFFENSE IN A FUNDAMENTAL CHANGE IN A NATION WHERE MEDIATION RATHER THAN COURTS TRADITIONALLY SETTLED DISPUTES THE NUMBER OF LAWSUITS FILED SINCE 1988 ROSE AN AVERAGE OF 99 ANNUALLY ALONG WITH RAPID ECONOMIC DEVELOPMENT PORTUGAL ANNOUNCED A FIVEYEAR PLAN TO AVERT A CRISIS IN ITS FARM SECTOR THE MEASURES TO COST 220 BILLION ESCUDOS 145 BILLION THROUGH 1997 INCLUDE LOANS AT LOW INTEREST RATES AND INCENTIVES TO HELP ITS FARMERS COMPETE WITH OTHERS IN THE EUROPEAN COMMUNITY ABOUT 10 OF EC FARMERS ARE IN PORTUGAL WHERE THEY REPRESENT 18 OF THE WORK FORCE THOUGH THEIR LABORINTENSIVE AND INEFFICIENT FARMS PRODUCE A TINY FRACTION OF EC OUTPUT THE INTERNATIONAL LABOR ORGANIZATION PREDICTED BLEAK TIMES FOR WORKERS WORLDWIDE IN THE LATE 1990S AMID RISING COMPETITION FOR JOBS AND MOUNTING PRESSURE BY EMPLOYERS TO KEEP WAGES DOWN IN ITS ANNUAL LABOR REPORT THE UNITED NATIONS AGENCY IN GENEVA SAID UNIONS' POWER TO PROTECT MEMBERS WAS ERODING EVEN IN DEVELOPED COUNTRIES AND WAS UNDER ATTACK IN ASIA'S FASTGROWING ECONOMIES IT ALSO CITED PERSISTENTLY HIGH GLOBAL UNEMPLOYMENT A STRUGGLE FOR SOCIAL PROTECTION IN DEVELOPING COUNTRIES AND AN EPIDEMIC OF STRESS AND SUGGESTED LITTLE PROSPECT FOR RADICAL CHANGE IN THIS DECADE POUNDED BY ECONOMIC STAGNATION AND UNEMPLOYMENT CONSUMER CONFIDENCE IN THE NETHERLANDS FELL TO ITS LOWEST LEVEL IN 10 YEARS ECONOMISTS INCREASINGLY EXPECT THE DUTCH ECONOMY TO SLIDE TOWARD ZERO GROWTH OR EVEN INTO RECESSION THIS YEAR BECAUSE OF ECONOMIC DECLINE IN GERMANY THE NETHERLANDS' BIGGEST EXPORT MARKET DUTCH GROSS DOMESTIC PRODUCT LAST YEAR GREW 15 ANNUAL WAGE INCREASES IN JAPAN ARE LIKELY TO AVERAGE LESS THAN 4 BASED ON RESULTS OF SPRING LABOR TALKS CONCLUDED BY THE STEEL AUTO ELECTRONICS AND SHIPBUILDING INDUSTRIES WHICH TRADITIONALLY SET THE PACE FOR PAY IN THE COUNTRY IF THE AVERAGE BOOST FOR ALL INDUSTRIES FALLS BELOW 4 AS EXPECTED IT WOULD BE THE SMALLEST RISE SINCE 1987 WHEN THE ECONOMY WAS HIT HARD BY A STEEP CLIMB IN THE YEN'S VALUE AGAINST THE DOLLAR AMID THE JAPANESE ECONOMY'S DOGGED SLUMP THE STEEL INDUSTRY SETTLED ITS TALKS WITH A PAY INCREASE OF 265 SHIPBUILDING NEGOTIATORS AGREED ON 427 AND THE ELECTRONICS INDUSTRY FINISHED WITH A 36 RISE BUT SOME PLUMS INCLUDED MORE HOLIDAYS AND SHORTER WORKING HOURS SEPARATELY A FINANCE MINISTRY SURVEY OF 10146 BUSINESSES FOUND A POSITIVE SIGNAL FOR EARNINGS AND SALES IN THE CURRENT QUARTER THOUGH SENTIMENT AMONG BIG COMPANIES REMAINED NEGATIVE FOR THE SIXTH QUARTER IN A ROW IT WAS RELATIVELY BETTER THAN THE PREVIOUS QUARTER THOUSANDS OF TRAVELERS WERE STRANDED IN PORTUGAL WHEN WORKERS ON LONGDISTANCE TRAINS INCLUDING INTERNATIONAL ROUTES AND MEDIUMDISTANCE ROUTES STAGED A 24HOUR STRIKE TO PROTEST WORKING CONDITIONS AND PUSH DEMANDS FOR WAGE INCREASES UNIONS WANT A 12 PAY BOOST THE GOVERNMENT HAS OFFERED 5 WHILE INFLATION LAST YEAR WAS 95 CHINA'S CENTRAL PARTY SCHOOL A MARXIST TRAINING GROUND OUTSIDE BEIJING SAID IT WOULD TEACH BASICS OF CAPITALISM AND ECONOMIC MANAGEMENT WITH COURSES ON FINANCE REAL ESTATE AND SECURITIES 9303230038 930323 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN CLINTON'S SUMMERJOBS CHALLENGE FACES AN UPHILL BATTLE THE WHITE HOUSE PLANS TO CREATE 13 MILLION JOBS FOR YOUTHS THIS SUMMER AND IS URGING PRIVATE INDUSTRY TO MATCH THAT NUMBER BUT FIRMS AREN'T HEEDING THE CALL YET COOPER INDUSTRIES WILL BYPASS YOUTHS THIS YEAR TO OFFER SUMMER WORK TO EMPLOYEES IT RECENTLY LAID OFF QUANEX WILL HIRE ONLY PEOPLE AT LEAST 18 YEARS OLD FOR CLERICAL AND OTHER JOBS AMUSEMENTPARK OPERATOR CEDAR FAIR PLANS 3500 STUDENT HIRES ABOUT THE SAME AS LAST SUMMER IN RECESSIONMARRED CALIFORNIA THE VIEW ISN'T MUCH BETTER SCECORP TRYING TO SHRINK WITHOUT LAYOFFS WILL SUSPEND ITS YEARLY SUMMER HIRING OF ABOUT 300 YOUTHS A PROGRAM BEGUN IN THE 1960S EVEN HIGHTECH FIRMS DON'T HAVE BIG PLANS AMGEN TARGETS GRAD STUDENTS FOR SUMMER POSTS SO DOES MAGNATEK WHICH SAYS THAT HIRING PARTTIMERS FOR PRODUCTION CAN CAUSE ILL WILL THE ADMINISTRATION PLANS TO PROD CORPORATIONS WITH PUBLICSERVICE MESSAGES BY CEOS WARM TO THE PROGRAM CORPORATE CUTBACKS DON'T DETER STAFF MEETINGS AWAY FROM THE OFFICE DALLASBASED MEETING PLANNERS INTERNATIONAL A TRADE ASSOCIATION SAYS COMPANIES ARE HOLDING MEETINGS AS OFTEN AND INCREASING THE NUMBER OF PARTICIPANTS TO MAXIMIZE USE OF TIME AND DOLLARS SARA LEE WESTCON AND GENERAL PUBLIC UTILITIES HOLD THE LEVEL OF OFFSITE POWWOWS CONSTANT GETTING PEOPLE AWAY FROM WORK EASES DISCUSSION OF KEY TOPICS A GPU OFFICIAL SAYS UNITED PARCEL SERVICE STILL HOLDS OFFSITE MEETINGS AT AIRPORT HOTELS AND OTHER UNGLAMOROUS SPOTS AS AN ALTERNATIVE TO VIDEO CONFERENCING BUT IN A BID TO SAVE MONEY THE COMPANY BRINGS SOME MEETINGS BACK TO THE ATLANTA CORPORATE HEADQUARTERS EXECUTIVE STOCK OWNERSHIP DOESN'T HELP FIRMS' RESULTS A STUDY SHOWS RUTGERS UNIVERSITY PROF JOSEPH BLASI USING DATA ON 7000 FIRMS' OWNERSHIP AND PERFORMANCE IN 1991 FOUND NO DIFFERENCE BETWEEN COMPANIES WHERE MANAGERS HELD 10 OF THE STOCK AND THOSE BELOW THAT LEVEL THERE REALLY ISN'T A MAGIC COMPENSATION BULLET AS PEOPLE WOULD LIKE US TO BELIEVE MR BLASI CONCLUDES IT'S VERY CLEAR THERE'S NOTHING HERE THE STUDY COMES AT A TIME WHEN MANAGEMENT CONSULTANTS AND INSTITUTIONAL SHAREHOLDERS ARE PRESSING FOR GREATER OWNERSHIP BY INSIDERS AT COMPANIES PROF BLASI DIDN'T LOOK AT STOCK PERFORMANCE BUT INSTEAD FOCUSED ON SUCH FINANCIAL RESULTS AS EARNINGS COMPARED WITH SALES AND RETURN ON ASSETS EMPLOYEESTOCK OWNERSHIP DOES HELP PERFORMANCE OTHER RUTGERS STUDIES SHOW STOCKS WITH 10 OR MORE WORKER HOLDINGS JUMPED 23 LAST YEAR VERSUS 42 FOR THE DOW JONES INDUSTRIALS IS IT GUILT THREE OF FOUR WORKING MOTHERS WITH CHILDREN UNDER AGE FIVE THINK THEIR YOUNGSTERS LEARN MORE IN DAY CARE THAN IF THE CHILD WERE STAYING HOME WITH THE MOTHER ACCORDING TO A SURVEY BY WORKING MOTHER MAGAZINE AND THE CHILD CARE ACTION CAMPAIGN A GROUP THAT ADVOCATES QUALITY CHILD CARE NEARLY THREE OF FIVE MOTHERS PREFER CENTERBASED CHILD CARE WHILE ONE IN THREE PROMOTES A FAMILY DAYCARE HOME PICKETING AND USHERING SERVICE EMPLOYEES LOCAL 399 THREATENS A STRIKE AGAINST KAISER PERMANENTE WITH AN UNUSUAL TWIST THE 12000MEMBER ORGANIZATION VOWS NOT ONLY TO PICKET SOUTHERN CALIFORNIA SITES STARTING APRIL 1 BUT TO HELP USHER PLAN MEMBERS INTO THE 60 KAISER MEDICAL FACILITIES DEMAND AND GET THE SERVICES YOU'VE PAID FOR AN AD WILL SAY A KAISER SPOKESWOMAN CALLS THE STRIKE PLAN ODD AND SAYS THE FIRM IS TRYING TO SETTLE THE DISPUTE NEW APPOINTMENTS ARE ON TAP AT THE LABOR DEPARTMENT DOUG ROSS PRESIDENT OF MICHIGAN FUTURE INC IS EXPECTED TO HEAD THE HUGE EMPLOYMENT AND TRAINING ADMINISTRATION IN THE RECENTLY PUBLISHED MANDATE FOR CHANGE MR ROSS URGED FEDERAL SUPPORT TO PROMOTE A WELLTRAINED EMPOWERED WORK FORCE BERNARD ANDERSON A PHILADELPHIA URBANAFFAIRS CONSULTANT AND ECONOMIST WILL BE TAPPED FOR THE EMPLOYMENT STANDARDS ADMINISTRATION AND MARTIN MANLEY A SAN FRANCISCO MANAGEMENT CONSULTANT WITH WATERMAN & MILLER WILL ALSO GET AN ASSISTANT SECRETARY SLOT BUSINESS GROUPS FRET OVER A NEW PANEL DESIGNATED TO LOOK AT LABOR LAWS THE COMMISSION EXPECTED TO BE HEADED BY FORMER FORD ADMINISTRATION LABOR CHIEF JOHN DUNLOP WILL TAKE ABOUT A YEAR TO REVIEW US LABOR LAWS LABOR SECRETARY REICH WHO IS PUTTING TOGETHER THE GROUP HAS URGED THE NEED TO RESTORE A LEVEL PLAYING FIELD BETWEEN WORKERS AND MANAGEMENT AND HE HAS CALLED UNIONS A STEP TOWARD HIGHER PRODUCTIVITY ORGANIZATIONS BUSINESS GROUPS WORRY THE PANEL COULD BE LOADED WITH PROLABOR ACADEMICS THEIR CHIEF VEXATION THE TEAM WILL HELP UNIONS ORGANIZE WORKERS THROUGH EASIER VOTING RULES AND EQUAL TIME FOR THE UNION DURING ORGANIZING CAMPAIGNS OUR CONCERN IS WHETHER THE COMMISSION WILL TAKE A BALANCED APPROACH SAYS JEFFREY MCGUINESS OF THE LABOR POLICY ASSOCIATION HE WONDERS WHETHER MR REICH HAS PREJUDGED THE SITUATION OTHER LIKELY PANEL MEMBERS FORMER UAW CHIEF DOUG FRASER AS THE UNION REP AND XEROX CEO PAUL ALLAIRE 9303230037 930323 WHO'S NEWS KODAK SAYS FOWBLE STAYED AFTER EXTENSION ON RETIREMENT PACKAGE ROCHESTER NY EASTMAN KODAK CO SAID IN ITS PROXY STATEMENT THAT WILLIAM F FOWBLE A 54YEAROLD SENIOR VICE PRESIDENT WHO WAS SIDELINED DURING THE 1991 RESTRUCTURING HAD PLANNED TO RETIRE THAT YEAR UNDER THE COMPANY'S LUCRATIVE EARLY RETIREMENT PACKAGE HE CHANGED HIS MIND WHEN THE PHOTOGRAPHY CHEMICALS AND HEALTHCARE COMPANY OFFERED TO GIVE HIM THE SAME BENEFITS IF HE RETIRED AT AN UNSPECIFIED LATER DATE THE PLAN OFFERED A LUMP SUM PAYMENT EQUAL TO TWO YEARS OF SALARY BRIDGE PAYMENTS EQUAL TO SOCIAL SECURITY PAYMENTS UNTIL MR FOWBLE IS AGE 62 AND LIFETIME HEALTH BENEFITS BEFORE THE RESTRUCTURING MR FOWBLE WAS GROUP VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S CORE PHOTOGRAPHIC PRODUCTS GROUP REPORTING DIRECTLY TO CHAIRMAN KAY R WHITMORE DURING THE RESTRUCTURING MR WHITMORE PROMOTED HEALTH PRESIDENT LEO JACK THOMAS TO THE NEW POST OF IMAGING PRESIDENT WHICH PUT HIM IN CHARGE OF MR FOWBLE A KODAK SPOKESMAN SAID THE COMPANY ASKED MR FOWBLE TO REMAIN TO HELP GET MR THOMAS UP TO SPEED ON THE IMAGING BUSINESS ALSO AT A TIME WHEN SENIOR EXECUTIVES WERE STAMPEDING TO ACCEPT THE PACKAGE ULTIMATELY 8321 LEFT MANAGEMENT FELT WE NEEDED SOME CONTINUITY THE SPOKESMAN SAID 9303230036 930323 MARKETING BRIEF NOTED WHO'S NEWS HEARST CORP SAID BETSY CARTER 47 WAS NAMED EXECUTIVE EDITOR OF HARPER'S BAZAAR A NEW POSITION SHE REPORTS TO EDITOR IN CHIEF ELIZABETH TILBERIS MS CARTER HAS SERVED AS A CONSULTANT TO TIME WARNER INC SINCE JANUARY 1992 WHEN AMERICAN EXPRESS CO CEASED PUBLICATION OF NEW YORK WOMAN A MAGAZINE SHE CREATED IN 1986 9303230035 930323 TECHNOLOGY & MEDICINE CADENCE PROJECTS FIRSTQUARTER LOSS STOCK DROPS 36 BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL CADENCE DESIGN SYSTEMS INC PROJECTED A LOSS FOR THE FIRST QUARTER SENDING ITS STOCK REELING 36 CADENCE A GLOBAL LEADER IN PRODUCING SOFTWARE USED BY ENGINEERS TO DESIGN SOPHISTICATED CIRCUIT BOARDS AND COMPUTER CHIPS DIDN'T GIVE SPECIFIC ESTIMATES FOR THE PERIOD BUT IT SAID PROBLEMS WITH PRODUCT STRATEGY DROVE REVENUE DOWN SUBSTANTIALLY FROM THE 1013 MILLION OF REVENUE REPORTED IN LAST YEAR'S FIRST QUARTER THE SAN JOSE CALIF COMPANY DIDN'T ELABORATE ON THE CAUSES OF THE REVENUE SHORTAGE HOWEVER ANALYSTS SAID THE POOR RESULTS REFLECT UNANTICIPATED DIFFICULTY CADENCE HAS ENCOUNTERED IN FULLY DIGESTING ITS 198 MILLION ACQUISITION OF RIVAL SOFTWARE MAKER VALID LOGIC SYSTEMS INC IN LATE 1991 IN THE YEAREARLIER QUARTER CADENCE EARNED 97 MILLION OR 21 CENTS A SHARE ANALYSTS HAD FORECAST THAT CADENCE WOULD EARN ABOUT 28 CENTS A SHARE ON REVENUE OF ROUGHLY 107 MILLION FOR THE CURRENT QUARTER ROBERT HERWICK AN ANALYST WITH HAMBRECHT & QUIST SAID CADENCE NOW IS LIKELY TO HAVE FIRSTQUARTER REVENUE OF ROUGHLY 85 MILLION DOWN ABOUT 16 FROM A YEAR EARLIER HE ESTIMATED THAT THE NET LOSS FOR THE QUARTER WOULD COME IN AT FIVE CENTS A SHARE TO 20 CENTS A SHARE THE NEWS JOLTED CADENCE'S STOCK WHICH SKIDDED 6 TO CLOSE AT 1050 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AS RECENTLY AS A YEAR EARLIER CADENCE WAS TRADING AT ABOUT 29 A SHARE MUCH OF THE PROBLEM AT CADENCE APPEARS RELATED TO THE COMPANY'S WAFFLING OVER HOW IT WILL TREAT VALID LOGIC'S POPULAR DESIGN CAPTURE SOFTWARE SYSTEM DESIGN CAPTURE SOFTWARE IS ESSENTIAL TO THE FIRST STEP OF THE PROCESS BY WHICH ENGINEERS DESIGN ADVANCED ELECTRONIC SYSTEMS ON COMPUTERS VALID LOGIC'S VERSION OF THAT SOFTWARE HAS MANY FANS IN THE ENGINEERING WORLD SOON AFTER ACQUIRING VALID LOGIC CADENCE INFORMED USERS OF VALID LOGIC'S DESIGN CAPTURE SYSTEMS THAT IT WOULD CONVERT THEM TO CADENCE SYSTEMS WHEN CUSTOMERS BALKED CADENCE SAID IT WOULD MAKE THE CONVERSION MORE SLOWLY MANY CUSTOMERS STILL COMPLAINED SO CADENCE ANNOUNCED LAST MONTH THAT IT WOULDN'T MAKE USERS OF THE VALID LOGIC SOFTWARE CONVERT THE FLIPFLOPPING CAUSED MANY CUSTOMERS TO DELAY PLACING ORDERS ANALYSTS SAID ANALYSTS PREDICTED THAT IT COULD TAKE A FEW QUARTERS TO SMOOTH OUT THE TROUBLE MR HERWICK PROJECTED THAT FOR ALL OF 1993 CADENCE SHOULD EARN 60 CENTS TO 90 CENTS A SHARE THAT COMPARES WITH CADENCE'S 1992 PROFIT OF 554 MILLION OR 120 A SHARE ON REVENUE OF 4345 MILLION 9303230034 930323 LETTERS TO THE EDITOR EQUAL MEDICAL CARE FOR ALL RICH AND POOR IN THE MYTH OF UNNECESSARY CARE EDITORIAL PAGE MARCH 1 DR BRANT S MITTLER ASKS IF THERE'S NOT THAT MUCH UNNECESSARY CARE AS THE NEW RAND FINDINGS SUGGEST WHO NEEDS MANAGED COMPETITION LATER IN HIS ARTICLE AND APPARENTLY WITHOUT REALIZING IT HE PARTLY ANSWERS HIS OWN QUESTION ACCORDING TO DR MITTLER OBSERVATIONAL DATABANKS OF PATIENT HISTORIES AND OUTCOMES RESEARCH AND NOT MANAGED COMPETITION WILL BE THE REAL REVOLUTION IN MEDICINE WHAT HE APPARENTLY DOESN'T REALIZE IS THAT THE MANAGED COMPETITION PLAN CALLS FOR JUST SUCH DATABANKS MANAGED COMPETITION WOULD USE REALTIME DATA ON OUTCOMES RESEARCH TO REDUCE UNNECESSARY TREATMENTS NOT JUST TO CUT COSTS BUT TO ENSURE THE PATIENT'S HEALTH AND WELLBEING UNNECESSARY TREATMENTS AREN'T JUST WASTEFUL AND EXPENSIVE THEY ADD NEEDLESSLY TO A PATIENT'S DISCOMFORT AND CAN ACTUALLY BE DANGEROUS BEYOND THAT MANAGED COMPETITION IS MUCH MORE THAN SAVING MONEY AND INCREASING EFFICIENCY AND PATIENT SATISFACTION IT IS A COMPREHENSIVE PLAN TO REFORM OUR HEALTH CARE SYSTEM FUNDAMENTALLY IT WOULD PROVIDE EVERYONE RICH AND POOR EMPLOYED AND UNEMPLOYED SICK AND HEALTHY EQUAL ACCESS TO A COMPREHENSIVE PACKAGE OF HEALTH CARE BENEFITS AND IT WOULD ELIMINATE THE RISK OF LOSING THAT COVERAGE BECAUSE OF JOB LOSS OR JOB CHANGE OR BECAUSE OF SERIOUS ILLNESS IT ALSO WOULD PROMOTE THE DEVELOPMENT OF THE VERY DATABANKS SUGGESTED BY DR MITTLER CONSUMERS THEN COULD DETERMINE CLEARLY WHICH DOCTORS AND HOSPITALS PROVIDE HIGH QUALITY ESSENTIAL CARE DR MITTLER'S DISCUSSION OF NECESSARY CARE WAS COMPLETE SAVE FOR ONE OTHER SUPPORTIVE POINT THE HEALTH CARE FINANCE ADMINISTRATION THAT MANAGES MEDICARE/MEDICAID REDUCES REIMBURSEMENT FOR MULTIPLE PROCEDURES OR CONSULTATIONS DONE BY A PHYSICIAN IN A CERTAIN TIME FRAME USUALLY OVER SEVERAL DAYS THE SEVERITY OF THE PUNISHMENT FOR TIMELY CARE IS THAT EACH PROCEDURE FOLLOWING THE INITIAL ONE IS REDUCED BY 50 OF THE ALLOWABLE CHARGE IN SUCCESSION IE REDUCTION BY 50 FOR THE SECOND PROCEDURE 75 FOR THE THIRD 875 FOR THE FOURTH ETC THIS TACTIC SO LIMITS REIMBURSEMENT FOR MULTIPLE PROCEDURES BY THE SAME PHYSICIAN THAT FINANCIAL MOTIVATION TO DO UNNECESSARY TESTS IS REALLY FICTITIOUS 9303230033 930323 ASARCO GETS NEW CREDIT LINE NEW YORK ASARCO INC SAID IT SIGNED AN AGREEMENT FOR A FIVEYEAR 320 MILLION REVOLVING CREDIT LINE TO REPLACE A 260 MILLION LINE THAT WAS SCHEDULED TO EXPIRE IN MAY 9303230032 930323 POLITICS & POLICY FBI'S SESSIONS SAID TO BE ON HIS WAY OUT MASSACHUSETTS JUDGE IS IN LINE FOR POST BY JEFFREY H BIRNBAUM AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS MOVING TO REPLACE WILLIAM SESSIONS THE BELEAGUERED DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION AND THE LEADING CANDIDATE IS MASSACHUSETTS JUDGE RICHARD STEARNS A LONGTIME FRIEND OF THE PRESIDENT MR SESSIONS IS LIKELY TO BE REPLACED SOON ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSIONS THOUGH NOT UNTIL THE ARMED STANDOFF NEAR WACO TEXAS HAS ENDED ADMINISTRATION OFFICIALS AND MR SESSIONS ARE SAID TO BE WORKING ON WHAT THE CLINTON PEOPLE HOPE WILL BE AN AMICABLE SEPARATION THE WHITE HOUSE HAS ALL BUT DECIDED TO NOMINATE MR STEARNS A SUPERIOR COURT JUDGE IN MASSACHUSETTS WHO HAS KNOWN PRESIDENT CLINTON SINCE THEY MET AS RHODES SCHOLARS IN 1968 THE 48YEAROLD JUDGE STEARNS HAS DISCUSSED THE FBI DIRECTORSHIP WITH WHITE HOUSE OFFICIALS JUDGE STEARNS WHO IS MARRIED TO A BANKER AND HAS NO CHILDREN HAS A LONG INVOLVEMENT IN POLITICS HE JOINED MR CLINTON IN A LONDON PROTEST AGAINST THE VIETNAM WAR IN 1969 IN THE 1972 PRESIDENTIAL RACE HE WAS GEORGE MCGOVERN'S DEPUTY CAMPAIGN MANAGER AND IN 1980 HE WAS NATIONAL DIRECTOR OF DELEGATES IN SEN EDWARD KENNEDY'S BID FOR THE DEMOCRATIC PRESIDENTIAL NOMINATION PRESIDENT CLINTON HASN'T SAID PUBLICLY THAT HE HAS LOST CONFIDENCE IN MR SESSIONS INDEED SPOKESMAN GEORGE STEPHANOPOULOS YESTERDAY PRAISED THE FBI DIRECTOR FOR HIS HANDLING OF THE WACO STANDOFF BUT MR STEPHANOPOULOS ADDED OBVIOUSLY IT'S THE PRESIDENT'S PREROGATIVE TO REPLACE THE FBI DIRECTOR MR STEPHANOPOULOS ALSO SAID ATTORNEY GENERAL JANET RENO IS REVIEWING A JUSTICE DEPARTMENT REPORT THAT CRITICIZED MR SESSIONS FOR ALLEGED ETHICAL LAPSES A JUSTICE DEPARTMENT SPOKESMAN SAID MS RENO HASN'T YET GIVEN PRESIDENT CLINTON HER RECOMMENDATIONS SHORTLY BEFORE LEAVING OFFICE EARLY THIS YEAR ATTORNEY GENERAL WILLIAM BARR SENT THE WHITE HOUSE A HARSHLY WORDED DEPARTMENT REPORT THAT ACCUSED MR SESSIONS A FORMER FEDERAL DISTRICT JUDGE IN TEXAS OF A RANGE OF TRANSGRESSIONS INCLUDING EVADING INCOME TAXES GIVING SOVIET DANCERS A RIDE IN HIS OFFICIAL LIMOUSINE DISREGARDING SECURITY PROCEDURES LOSING TRACK OF FREQUENTFLIER MILES REDECORATING HIS OFFICE AT NEARLY EIGHT TIMES THE MAXIMUM ALLOWABLE COST AND ALLOWING HIS WIFE TO INTERFERE WITH BUREAU BUSINESS THE DEPARTMENT'S OFFICE OF PROFESSIONAL RESPONSIBILITY SAID ITS FINDINGS RAISE SERIOUS ISSUES THAT ONLY THE PRESIDENT CAN RESOLVE REGARDING WHETHER DIRECTOR SESSIONS SHOULD CONTINUE TO ENJOY THE PRESIDENT'S FULL FAITH AND CONFIDENCE IN HIS ABILITY TO PROPERLY CONDUCT HIS OFFICE IN RESPONSE MR SESSIONS HAS CLAIMED THE JUSTICE DEPARTMENT'S REPORT WAS INACCURATE INCOMPLETE BIASED MISLEADING AND SHOULD NOT BE CONFUSED WITH AN OBJECTIVE INQUIRY HIS LAWYERS PREPARED A DETAILED RESPONSE TO THE ALLEGATIONS THAT WAS SUBMITTED TO WHITE HOUSE LAWYERS MR SESSIONS HAS CONTINUED TO FIGHT THE CHARGES ASSERTING THAT THE CLINTON ADMINISTRATION WOULD GIVE HIM A FAIR HEARING AND MAINTAINING THROUGH A SPOKESMAN THAT HE INTENDS TO STAY THROUGH THE MORE THAN FOUR YEARS REMAINING IN HIS 10YEAR TERM THE WHITE HOUSE APPEARS TO BE MOVING CAUTIOUSLY ABOUT REPLACING MR SESSIONS A PRECISE TIMETABLE HASN'T BEEN DETERMINED ACCORDING TO PEOPLE CLOSE TO THE DISCUSSIONS STILL JUDGE STEARNS IS CLEARLY THE FRONTRUNNER FOR THE POST MR STEARNS A GRADUATE OF HARVARD LAW SCHOOL BEGAN HIS LEGAL CAREER AS AN ASSISTANT DISTRICT ATTORNEY IN MASSACHUSETTS AND SPENT NINE YEARS IN THE US ATTORNEY'S OFFICE IN BOSTON DURING THE REAGAN AND BUSH PRESIDENCIES HE WAS APPOINTED TO THE MASSACHUSETTS SUPERIOR COURT IN 1990 9303230031 930323 LAW RTC LAGS BEHIND IN EFFORT TO GIVE OUT LEGAL WORK TO MINORITIES AND WOMEN BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RESOLUTION TRUST CORP IS LAGGING BEHIND IN ITS EFFORTS TO DISTRIBUTE MORE OF ITS LEGAL WORK TO MINORITIES AND WOMEN CREATING A POLITICAL PROBLEM FOR THE AGENCY JUST AS IT SEEKS BILLIONS MORE IN ADDED FUNDING FROM CONGRESS THE RTC IS REQUIRED BY THE AUGUST 1989 THRIFTBAILOUT STATUTE TO MAKE A SPECIAL EFFORT TO SEEK OUT MINORITY AND WOMEN CONTRACTORS BUT ESPECIALLY IN THE LEGAL AREA RECRUITMENT EFFORTS WERE VIRTUALLY NONEXISTENT OR CAUGHT UP IN BUREAUCRATIC SNAGS UNTIL LAST YEAR AND AS A RESULT LAW FIRMS THAT WOULD HAVE QUALIFIED HAVE LOST MILLIONS OF DOLLARS IN POTENTIAL REVENUE THE NUMBERS ARE ABYSMAL AND CLEARLY INDICATE THAT IN THE PAST THE RTC HAS NOT TAKEN SERIOUSLY ANY COMMITMENT FOR DIVERSITY SAID NEW YORK REP FLOYD H FLAKE CHAIRMAN OF A HOUSE BANKING SUBCOMMITTEE SCHEDULED TO HOLD HEARINGS ON RTC CONTRACTING PROCEDURES TODAY LAST YEAR MINORITYCONTROLLED OR WOMENCONTROLLED FIRMS ACCOUNTED FOR 97 OR 287 MILLION OF THE AGENCY'S OUTSIDE LEGAL BUDGET FOR CASES THAT INVOLVE DISPOSING OF THE ASSETS OF FAILED THRIFTS ACCORDING TO RTC TESTIMONY SCHEDULED FOR PRESENTATION AT TODAY'S HEARING THE AMOUNT COMPARES WITH A RATE OF LESS THAN 3 IN 1991 BUT FALLS SHORT OF THE 20 GOAL THAT THE AGENCY ITSELF SET LAST YEAR RTC OFFICIALS ACKNOWLEDGE SOME PROBLEMS AND SAY THEY ARE TAKING STEPS TO DO BETTER IN ONE SHOW OF CONCERN TREASURY SECRETARY LLOYD BENTSEN JUST LAST WEEK SAID THE RTC OFFICIAL IN CHARGE OF MINORITY AND WOMEN PROGRAMS WOULD START REPORTING DIRECTLY TO THE AGENCY'S CHIEF EXECUTIVE OFFICER WE SIMPLY HAVE A LOT OF WORK TO DO SAID RICK ABOUSSIE ACTING RTC GENERAL COUNSEL THE RTC AND THE FEDERAL DEPOSIT INSURANCE CORP WHICH ALSO HAS BEEN MAKING SPECIAL EFFORTS TO INCREASE DIVERSITY AMONG CONTRACTORS HAVE BEEN A FOCUS OF ATTENTION BECAUSE IN RECENT YEARS THE AMOUNT THEY HAVE SPENT ON PRIVATE LAW FIRMS AND LAWYERS HAS MUSHROOMED THE AGENCIES' COMBINED OUTSIDE LEGAL SPENDING PEAKED AT ALMOST 1 BILLION IN 1991 AND SPENDING IS EXPECTED TO CONTINUE TO RUN SEVERAL HUNDRED MILLION DOLLARS A YEAR FOR SOME TIME THE FDIC ALSO GAVE ABOUT 9 OF ITS OUTSIDE LEGAL WORK LAST YEAR TO FIRMS CONTROLLED BY MINORITIES OR WOMEN ALTHOUGH IT HASN'T SET NUMERICAL GOALS JOSE CEPPI ASSISTANT GENERAL COUNSEL SAID THE FDIC IS LOOKING FOR CONTINUED SUBSTANTIAL PROGRESS THIS YEAR AND HE ACKNOWLEDGED PRESSURE FROM MINORITY BAR GROUPS TO STEP UP THE FDIC'S PROGRAMS BOTH AGENCIES ARE ALSO ENCOURAGING LAW FIRMS WHOSE PARTNERS ARE MOSTLY WHITE MEN TO HIRE MINORITIES AND WOMEN AND ARE DOLING OUT WORK ACCORDINGLY MICHAEL FLOWERS A PARTNER AT THE COLUMBUS OHIO LAW FIRM OF PORTER WRIGHT MORRIS & ARTHUR SAYS THE FIRM GOT ADDITIONAL FDIC WORK FOR EXAMPLE AFTER DEMONSTRATING THAT MINORITY LAWYERS WOULD HAVE A SIGNIFICANT ROLE IN INVESTIGATING A BIG TEXAS BANK FAILURE FOR THE AGENCY BUT THE RTC HAS SUFFERED BECAUSE OF A FEELING AMONG SOME TOP OFFICIALS THAT MINORITY LAW FIRMS LACKED THE EXPERTISE OR MANPOWER TO HANDLE MAJOR COMMERCIAL CASES AGENCY OFFICIALS SAID THE PROGRAM WAS ALSO BOGGED DOWN BY THE AGENCY'S OWN OVERSIGHT BOARD WHICH IN 1991 SOUGHT A LEGAL OPINION FROM THE JUSTICE DEPARTMENT ON WHETHER GIVING PREFERENCES BASED ON RACE ETHNIC IDENTITY OR GENDER WAS DISCRIMINATORY NO OPINION WAS EVER RECEIVED AND THE REQUEST SLOWED THE PROGRAM'S MOMENTUM OFFICIALS SAID BUT SUCH GROUPS AS THE NATIONAL BAR ASSOCIATION THE NATION'S LARGEST GROUP OF BLACK ATTORNEYS WHICH HAS BEEN LOBBYING BOTH THE RTC AND FDIC ON LEGAL FEES TAKE GREAT EXCEPTION TO THE VIEW THAT THERE'S AN INSUFFICENT NUMBER OF SKILLED MINORITY LAWYERS MOREOVER THEY ARGUE THAT SMALLER FIRMS SOME OF THEM MINORITYRUN TEND TO BE LESS EXPENSIVE THAN SOME LARGER ONES THAT THE RTC HAS BEEN USING A MAJOR PROBLEM FOR THE RTC HAS BEEN THAT OUR FIELD STAFF CONTINUES TO PROVIDE THE WORK TO PEOPLE THEY KNOW AS OPPOSED TO SPREADING THE WEALTH AMONG MINORITIES AND WOMEN SAID JOHNNIE B BOOKER ASSISTANT VICE PRESIDENT IN THE DEPARTMENT OF MINORITY AND WOMEN'S PROGRAMS AT THE RTC MS BOOKER A FORMER DEPUTY ASSISTANT SECRETARY OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT JOINED THE RTC IN DECEMBER 1991 WE ARE GOING TO HAVE TO HAVE A REAL EDUCATION NOT ONLY WITH OUTSIDE FIRMS BUT AN EDUCATION WITH THE PEOPLE INSIDE AS WELL SHE ADDED 9303230030 930323 ENTERPRISE LAW MAY STEER AUTO TESTERS' BUSINESS AWAY BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL LARRY ARMSTRONG'S AUTOREPAIR BUSINESS HAS LIVED BY THE REGULATION AND NOW MAY DIE BY IT MR ARMSTRONG IS PRESIDENT AND PRINCIPAL OWNER OF SIDE B CORP A PRIVATE CHAIN OF 29 REPAIR SHOPS IN CAMPBELL CALIF HE ESTIMATES THAT MORE THAN ONEFOURTH OF HIS SHOPS' 15 MILLION ANNUAL REVENUE COMES FROM TESTING CARS AND TRUCKS UNDER CALIFORNIA'S SMOGCHECK PROGRAM BUT IN THE NAME OF CLEANER AIR STATE AND FEDERAL REGULATORS ARE TRYING TO TAKE THIS TESTING WORK AWAY FROM MR ARMSTRONG AND THOUSANDS OF OTHER SMALLBUSINESS OWNERS AROUND THE COUNTRY REGULATORS PLAN TO HAVE THE WORK PERFORMED BY A RELATIVELY SMALL NUMBER OF SUPER TESTING STATIONS WITH SOME RUN BY PRIVATE CONTRACTORS IF CALIFORNIA IMPLEMENTS THIS SOCALLED CENTRALIZED TESTING PROGRAM I WOULD BE OUT OF BUSINESS MR ARMSTRONG SAYS SUCH WORRIES HAVE PROMPTED A DONNYBROOK THAT STRETCHES FROM SEA TO SMOGSHROUDED SEA AND INCLUDES SEVERAL HALLS OF GOVERNMENT IT IS A SOBERING REMINDER FOR ANY SMALLBUSINESS OWNER WHO MAKES MONEY FROM GOVERNMENT RULES WHAT LAWMAKERS GIVETH THEY CAN ALSO TAKE AWAY THE BUSINESS OF VEHICLE EMISSIONS TESTING CLEARLY WOULDN'T EXIST WITHOUT GOVERNMENT REGULATIONS INSPECTION AND MAINTENANCE PROGRAMS WERE FIRST REQUIRED BY THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY IN 1978 THOUGH SOME STATES HAVE REQUIRED TESTING SINCE THE 1960S THERE HAS LONG BEEN A DISPUTE OVER THE MERITS OF CENTRALIZED VS DECENTRALIZED TESTING PROGRAMS CURRENTLY 19 STATES USE DECENTRALIZED PROGRAMS WHILE 13 STATES AND THE DISTRICT OF COLUMBIA HAVE CENTRALIZED PROGRAMS ACCORDING TO THE EPA NEW JERSEY AND OHIO USE BOTH SYSTEMS THE REST GENERALLY LOWPOPULATION STATES DON'T HAVE AIRPOLLUTION PROBLEMS SERIOUS ENOUGH TO REQUIRE VEHICLE INSPECTIONS UNDER A CENTRALIZED PROGRAM A STATE SETS UP A RELATIVELY SMALL NUMBER OF TESTING LOCATIONS PRIVATE GARAGES PERFORM NEEDED REPAIRS IN A DECENTRALIZED SYSTEM THE STATE AUTHORIZES A LARGE NUMBER OF PRIVATE OPERATORS TO BOTH TEST AND MAKE REPAIRS THE LATEST BATTLE BEGAN WITH 1990 AMENDMENTS TO THE FEDERAL CLEAN AIR ACT AND FOLLOWUP EPA REGULATIONS ISSUED LAST NOVEMBER UNCLE SAM IS NOW PUSHING STATES WITH SERIOUS SMOG PROBLEMS TO USE EXPENSIVE NEW HIGHTECH DETECTION EQUIPMENT IN CENTRALIZED TESTING STATIONS THE NEW RULES DON'T FLATLY FORBID TRADITIONAL DECENTRALIZED SYSTEMS BUT THEY DO MAKE IT VERY DIFFICULT FOR SUCH A SYSTEM TO CONTINUE IT IS PRETTY CLEAR THAT DECENTRALIZED SYSTEMS ARE MUCH LESS EFFECTIVE THAN CENTRALIZED ONES SAYS GENE TIERNEY CHIEF OF AN EPA OFFICE IN ANN ARBOR MICH THAT OVERSEES VEHICLE INSPECTION AND MAINTENANCE PROGRAMS ADVOCATES SAY CENTRALIZED TESTING AVOIDS THE POSSIBLE CONFLICTS OF INTEREST OF HAVING SOMEONE DOING BOTH THE TESTING AND THE REPAIR WORK THE CONFLICT CAN LEAD TO UNNECESSARY REPAIRS AND EXPENSE OR IT CAN CAUSE A GARAGE OWNER TO GO EASY IN ORDER TO AVOID FLUNKING A REGULAR CUSTOMER WITH A DECENTRALIZED SYSTEM THERE ALSO IS THE DIFFICULTY OF MONITORING TESTING FRAUD AMONG THOUSANDS OF SEPARATE OPERATORS IN SOUTHERN CALIFORNIA FOR INSTANCE LAWENFORCEMENT OFFICIALS ESTIMATE THAT AS MANY AS 20 OF THE TESTCOMPLIANCE CERTIFICATES ISSUED ARE BOGUS IN RECENT MONTHS SEVERAL DOZEN OPERATORS AND EMPLOYEES OF REPAIR SHOPS THERE HAVE BEEN ARRESTED FOR ALLEGED FRAUDULENT TESTING SOME CONVICTIONS ALREADY HAVE BEEN OBTAINED LAWENFORCEMENT OFFICIALS SAY UNDER THE NEW FEDERAL RULES STATES MUST SUBMIT NEW INSPECTION PLANS TO THE EPA BY NOVEMBER STATES WILL HAVE UP TO TWO YEARS TO IMPLEMENT THEM BUT SMALLBUSINESS OWNERS IN THE SMOGCONTROL BUSINESS AREN'T GOING DOWN WITHOUT A FIGHT IN JANUARY A COALITION OF TRADE GROUPS REPRESENTING AUTO DEALERS SERVICE STATIONS AND REPAIR SHOPS SOUGHT TO BLOCK THE NEW EPA RULES BY FILING SUIT IN A WASHINGTON DC FEDERAL APPEALS COURT THE SUIT IS STILL PENDING SMALLBUSINESS GROUPS ALSO ARE TAKING THEIR BATTLE TO STATE LAWMAKERS AND REGULATORS THE GROUPS ARE JAMMING HEARINGS FILING PETITIONS AND SUPPORTING LEGISLATION TO KEEP SOME FORM OF IMPROVED DECENTRALIZED SYSTEM JIM BASTONE OWNER OF BASTONE AUTO SERVICE IN PITTSBURGH ESTIMATES HIS AUTOREPAIR BUSINESS WILL LOSE ABOUT 20 OF ITS ANNUAL REVENUE IF HIS STATE GOES TO A SYSTEM OF CENTRALIZED TESTONLY FACILITIES HE REJECTS ARGUMENTS THAT THE NEW TESTING SYSTEM WILL CATCH MORE POLLUTING CARS AND MEAN MORE REPAIR BUSINESS FOR FIRMS SUCH AS HIS MR BASTONE SAYS HE WILL GET MORE REPAIR BUSINESS ONLY IF HE IS LUCKY ENOUGH TO HAVE A CENTRAL TEST FACILITY BUILT NEAR HIS GARAGE IT'S FOOLISH TO THINK EVEN REGULAR CUSTOMERS MIGHT DRIVE 20 MILES TO FIX THEIR CAR CUSTOMER LOYALTY DOESN'T CARRY THAT FAR THE ENTREPRENEUR SAYS STEVEN GLAZER OWNER OF BLUE RIBBON SERVICE STATION IN NEW YORK CITY'S BOROUGH OF QUEENS HAS A SIMILAR LAMENT HE SAYS HE INVESTED THOUSANDS OF DOLLARS IN 1990 TO UPGRADE EQUIPMENT TO MEET NEW STATE REQUIREMENTS UNDER NEW YORK'S DECENTRALIZED TESTING PROGRAM THE NEW EPA RULES COULD MAKE THAT INVESTMENT WORTHLESS HE SAYS PLUS COST HIM ABOUT 3000 A MONTH IN LOST TESTING REVENUE AND CAUSE HIM TO LAY OFF ONE OF HIS FOUR MECHANICS BACKERS OF A DECENTRALIZED SYSTEM ARGUE THAT CONSUMERS ALSO COULD BE BIG LOSERS UNDER A CENTRALIZED SYSTEM BY FACING THE POSSIBILITY OF LONG DRIVES AND LONG WAITS STATES COULD RAISE MONEY BY OPENING HOT DOG STANDS TO FEED PEOPLE WAITING ON LINE AT THE FEW CENTRAL STATIONS JOKES JIM DASKAL GENERAL COUNSEL OF SERVICE STATION DEALERS OF AMERICA AN ALEXANDRIA VA TRADE GROUP WITH 50000 MEMBERS SUCH CONCERNS ARE PURE BALDERDASH RETORTS RJ SOMMERVILLE DIRECTOR OF THE SAN DIEGO COUNTY AIR POLLUTION CONTROL DISTRICT AND A BACKER OF CENTRALIZED TESTING HE SAYS EXISTING CENTRALIZED SYSTEMS WORK WELL AND HAVE A HIGH PUBLIC ACCEPTANCE NEVERTHELESS MR SOMMERVILLE DOES WORRY ABOUT THE SOCALLED PINGPONG EFFECT WHERE A MOTORIST MIGHT HAVE TO SHUTTLE BACK AND FORTH BETWEEN A TEST STATION AND REPAIR SITE TO GET THE RIGHT REPAIR TO PASS THE TEST BUT HE BELIEVES ADEQUATE TRAINING OF MECHANICS CAN ALLEVIATE THIS PROBLEM 9303230029 930323 US RESERVE ASSETS ROSE BY 885 MILLION IN THE LATEST MONTH WASHINGTON US OFFICIAL RESERVE ASSETS ROSE 885 MILLION IN FEBRUARY TO 7285 BILLION THE TREASURY DEPARTMENT SAID LAST MONTH'S RISE COMPARED WITH A 639 MILLION INCREASE IN RESERVE ASSETS IN JANUARY TO 7196 BILLION THE DEPARTMENT SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES INCREASED 838 MILLION IN FEBRUARY TO 4112 BILLION WHILE ITS GOLD RESERVES WERE UNCHANGED AT 1106 BILLION US HOLDINGS OF IMF SPECIAL DRAWING RIGHTS LAST MONTH ROSE 105 MILLION TO 865 BILLION ITS RESERVE POSITION AT THE IMF DROPPED 58 MILLION TO 1202 BILLION 9303230028 930323 CORPORATE FOCUS ANHEUSERBUSCH TO BUY 18 STAKE IN MEXICAN BREWER DEAL WITH GRUPO MODELO UNDERSCORES NEW TREND IN EXPANSION ABROAD BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU CAN'T BEAT 'EM BUY 'EM ANHEUSERBUSCH COS ANNOUNCED AN AGREEMENT IN PRINCIPLE TO ACQUIRE 18 OF GRUPO MODELO SA MEXICO'S BIGGEST BREWER AND MAKER OF CORONA BEER THE POPULAR YUPPIE BREW OF THE 1980S FOR 477 MILLION ANHEUSER EVENTUALLY COULD INCREASE ITS STAKE IN CLOSELY HELD MODELO TO ABOUT 50 BUT SAID NO CHANGE IN CONTROL IS CONTEMPLATED THE INVESTMENT ANHEUSER'S FIRST IN A MAJOR FOREIGN BREWER SEEMINGLY INDICATES A GROWTH STRATEGY THAT RELIES MORE ON AMICABLE RELATIONSHIPS THAN ADVERSARIAL MARKETING WARS JUST LAST WEEK ANHEUSER ANNOUNCED A JOINT VENTURE WITH JAPAN'S LARGEST BREWER KIRIN BREWERY CO TO DISTRIBUTE BUDWEISER IN THAT COUNTRY WITH THE AIM OF TRANSFORMING WHAT IS NOW A LEADING IMPORT INTO WHAT THE COMPANIES CALL A MAINSTREAM BREW WE'RE LOOKING AT ACQUIRING OTHER BREWERS AND OTHER BRANDS OUTSIDE OF MEXICO A SENIOR ANHEUSER OFFICIAL SAID INDEED INTERNATIONAL ALLIANCES SEEM TO BE THE TREND EARLIER THIS YEAR MILLER BREWING CO A UNIT OF PHILIP MORRIS COS AND ANHEUSER'S DOMESTIC ARCH RIVAL ACQUIRED A 20 STAKE IN THE US IMPORT OPERATIONS OF CANADA'S MOLSON BREWERIES WITH GAINS IN ITS DOMINATING 44 SHARE OF THE US MARKET INCREASINGLY HARD TO COME BY ANHEUSER WHICH CALLS ITSELF THE KING OF BEERS HAS LOOKED LONGINGLY OVERSEAS MUCH AS A MEDIEVAL EMPEROR WITH A FAT TREASURY AND EXPANSIONIST THIRST MIGHT BUT UNTIL NOW ANHEUSER HAS OPTED TO PUSH ITS BESTSELLING BUDWEISER BRAND ABROAD NOW APPARENTLY IT SEES IN THE DOMINANT BRANDS OF OTHER COUNTRIES THE POTENTIAL PROFITS IT SEEKS IT INDICATES A NEW ERA IN THE GLOBALIZATION OF THE BEER BUSINESS SAID BEN STEINMAN EXECUTIVE EDITOR OF BEER MARKETER'S INSIGHTS A TRADE PUBLICATION MR STEINMAN ESTIMATES THAT ANHEUSER HAS SLIGHTLY MORE THAN 10 OF THE WORLD'S BEER MARKET AND MILLER IS RUNNERUP AT ABOUT 52 THE ANHEUSERMODELO ACCORD ALSO CALLS FOR BOTH COMPANIES TO HAVE REPRESENTATIVES ON THE OTHER'S BOARD AND FOR EACH TO SWAP A HALF DOZEN EXECUTIVES FOR TWOYEAR TOURS OF DUTY WE BELIEVE WE WILL BE ABLE TO ADD VALUE TO MODELO THROUGH THE MUTUAL EXCHANGE AND THEY TO US SAID JOHN H PURNELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ANHEUSER'S INTERNATIONAL BREWING UNIT WHILE HE TERMED MANAGEMENT AT THE MEXICAN BREWERY DEEP MR PURNELL SAID UPPERMIDDLE MANAGERS IN FINANCE MARKETING PLANNING BREWING AND PACKAGING WOULD SWAP JOBS WITH THEIR FOREIGN COUNTERPARTS UNDER DISCUSSION FOR NEARLY TWO YEARS THE MEXICAN VENTURE IS BUT THE FIRST OF MANY MR PURNELL INDICATED HE SAID ST LOUISBASED ANHEUSER IS PURSUING SIMILAR EQUITY POSITIONS IN ALL SECTORS OF THE GLOBE ASKED WHETHER ANY MIGHT BE ACHIEVED THIS YEAR HE SAID I DON'T RULE OUT ONE BUT SAID 1994 MIGHT BE A MORE REALISTIC DATE BUDWEISER HAS BEEN SOLD IN MEXICO BY MODELO SINCE 1989 AND WILL CONTINUE TO BE EXPORTED FROM ANHEUSER'S HOUSTON BREWERY MODELO WILL REMAIN THE EXCLUSIVE IMPORTER AND DISTRIBUTOR SIMILARLY US DISTRIBUTION RIGHTS FOR CORONA AREN'T INCLUDED IN THE AGREEMENT IT AND OTHER MODELO BRANDS WILL CONTINUE TO BE IMPORTED BY BARTON BEERS AND GAMBINUS IMPORTING CO THE CAKE HERE IS THEIR BRANDS AND THEIR COMPANY AND THE OUTLOOK IN MEXICO FOR MODELO'S BUSINESS MR PURNELL SAID MODELO HOLDS A 51 SHARE OF THE MEXICAN BEER MARKET WHICH IS GROWING MUCH FASTER THAN THE US MARKET YESTERDAY MODELO SAID IT IS LOOKING TO OFFER 13 OF THE COMPANY'S CAPITAL VALUED AT ABOUT 270 MILLION ON MEXICAN AND INTERNATIONAL STOCK MARKETS SOMETIME THIS YEAR THE OFFERING WOULD BE THE FIRST FOR THE CLOSELY HELD COMPANY ANHEUSER MANAGED TO EKE OUT A FOURTENTHS PERCENTAGE POINT GROWTH IN US BEER SALES LAST YEAR DESPITE A LAGGARD ECONOMY AND ABNORMALLY COLD WET WEATHER SLOW GROWTH REMAINS A CONCERN FOR THE ENTIRE US INDUSTRY PARTLY BECAUSE OF TALK IN WASHINGTON ABOUT A POSSIBLE INCREASE IN THE FEDERAL EXCISE TAX ON BEER TO HELP PAY FOR HEALTHCARE REVISIONS THE WORLD'S LARGEST BREWER IS PREPARING TO BATTLE ANY SUCH ATTEMPT RESPONSIBLE CONSUMPTION OF BEER IS NOT CONTRIBUTING TO THE NATIONAL HEALTH CRISIS JERRY E RITTER ANHEUSER'S CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER TOLD SECURITIES ANALYSTS LAST WEEK BUT WHEN CONGRESS DOUBLED THE TAX ON A BARREL OF BEER IN 1991 SALES DECLINED THUS OVERSEAS MARKETS HAVE AN ADDED GLOW THESE DAYS ANHEUSER WHICH SOLD ABOUT FOUR MILLION BARRELS OF BUDWEISER ABROAD LAST YEAR HAS MARKETED ITS FLAGSHIP BRAND ABROAD SINCE 1981 BUT HAS MADE MONEY AT IT ONLY IN THE PAST SIX YEARS MR PURNELL SAID AS THE STRATEGY BROADENS FROM SIMPLY BUILDING BUD INTO A WORLDWIDE BRAND TO TAKING EQUITY POSITIONS IN OTHER LEADING BRANDS THE COMPANY MAY OPT TO BUY INTO A COUNTRY'S SECOND OR THIRDBESTSELLING BEER MR PURNELL SAID WE ARE SEEKING EQUITY POSITIONS IN OTHER BREWERS THAT WILL MAKE A SIGNIFICANT IMPACT ON THE GROWTH OF OUR COMPANY HE SAID ALTHOUGH IT RACKED UP MORE THAN 1 BILLION IN EARNINGS BEFORE ACCOUNTING CHANGES LAST YEAR PRIMARILY FROM BEER ANHEUSER HAS ENCOUNTERED TOUGH TIMES IN ITS OTHER NONBEVERAGE BUSINESSES LAST YEAR FOR EXAMPLE ITS CAMPBELL TAGGART INC BAKEDGOODS UNIT INCURRED WHAT THE COMPANY CALLS A SLIGHT PROFIT DECLINE ON A 3 VOLUME INCREASE THE COMPANY WAS UNABLE TO RAISE PRICES AS RECESSIONMINDED CONSUMERS OPTED FOR NONBRANDED BAKERY ITEMS SIMILARLY ANHEUSER'S EAGLE SNACKS UNIT CAME UNDER INTENSE PRESSURE FROM PEPSICO INC'S FRITOLAY UNIT IN THE CHIPS MARKET DEPRESSING PROFIT MARGINS AS A RESULT ALTHOUGH EAGLE'S TONNAGE ROSE 15 LAST YEAR DOLLAR SALES WERE ONLY UP 6 EAGLE REMAINS UNPROFITABLE OVERALL BUT MR RITTER SAID THE UNIT REDUCED ITS LOSSES AGAIN LAST YEAR AND WE PLAN THAT IT WILL LOSE CONSIDERABLY LESS IN 1993 AS IT GAINS MARKET SHARE ANHEUSER'S THEME PARKS IN FLORIDA ARE RECORDING WHAT THE COMPANY CALLS EXTREMELY STRONG ATTENDANCE GAINS REFLECTING MORE FOREIGN VISITORS BUT PARKS IN CALIFORNIA AND VIRGINIA AREN'T YET SEEING A BIG UPSWING STILL OVERALL BUSCH ENTERTAINMENT CORP REPORTED A 20 OPERATING EARNINGS INCREASE LAST YEAR ON 2 HIGHER ATTENDANCE WHILE THE COMPANY PUSHES BEER INVESTMENTS ABROAD ITS PARTNERSHIP IN THE THEME PARKS BUSINESS SO FAR HAS BEEN A STOMACHCHURNING FINANCIAL ROLLER COASTER THE JOINT VENTURE TO DEVELOP A THEME PARK AND RESORT NEAR BARCELONA SPAIN HAS STALLED WHILE THE PRIMARY DEVELOPER TIBIDABO SA SEEKS ADDITIONAL FINANCING STILL ANHEUSER PUBLICLY PUTS ON A POSITIVE FACE I DON'T THINK WE WILL HAVE A WRITEOFF ON THE PROJECT MR RITTER SAID ANHEUSER SHARES WERE QUOTED LATE YESTERDAY AT 5275 UP 1 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MILLER BREWING CO A UNIT OF PHILIP MORRIS COS ADOLPH COORS CO STROH BREWING CO 9303230027 930323 US MARKETS ARE OFFERING RELATIVE CALM AS POTENTIAL STORM BREWS IN THE KREMLIN BY ANITA RAGHAVAN AND SHOBA PURUSHOTHAMAN STAFF REPORTERS OF THE WALL STREET JOURNAL US INVESTORS MAY BE WORRIED ABOUT THE MOUNTING POLITICAL TURMOIL IN RUSSIA BUT SHOULD THEY BE DOING ANYTHING ABOUT IT WITH RUSSIAN PRESIDENT BORIS YELTSIN FACING A GROWING CHALLENGE TO HIS POWER MANY WALL STREET STOCK STRATEGISTS ARE TELLING THEIR CLIENTS THAT IF THE SITUATION WORSENS US STOCK AND BOND MARKETS COULD BE IN FOR SOME CHOPPY WATERS OVER THE NEXT FEW MONTHS BUT INVESTORS SHOULDN'T PANIC THESE ANALYSTS SAY SOME ARE EVEN TELLING THEIR CLIENTS TO USE ANY SELLOFF AS A BUYING OPPORTUNITY IF THERE WAS OUTOFCONTROL TURMOIL IN RUSSIA THE STOCK MARKET COULD SELL OFF FURTHER SAYS CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST FOR MERRILL LYNCH & CO BUT IT WOULDN'T CHANGE THE UNDERLYING DYNAMICS OF THE US MARKETS MR CLOUGH SAYS THE COMBINATION OF A STRENGTHENING ECONOMY WITH LOW INFLATION STILL MAKES US STOCKS ATTRACTIVE US STOCKS HAVE TUMBLED TWICE IN THE PAST MONTH ON FEARS THAT RUSSIAN TURMOIL WOULD JEOPARDIZE AMERICA'S HOPES FOR A DEFICITCUTTING PEACE DIVIDEND THE LATEST SELLOFF CAME YESTERDAY MORNING WHEN THE DOW JONES INDUSTRIAL AVERAGE FELL MORE THAN 20 POINTS OVER CONCERNS ABOUT THE POLITICAL SKIRMISHING BETWEEN MR YELTSIN AND THE RUSSIAN PARLIAMENT BUT STOCK PRICES REBOUNDED BY THE END OF THE DAY FINISHING 810 POINTS LOWER AT 346348 WHILE AMERICAN INVESTORS RESPONDED CALMLY TO EVENTS IN RUSSIA YESTERDAY MAJOR EUROPEAN STOCK MARKETS FROM FRANKFURT TO ZURICH FELL AS INVESTORS DASHED FOR THE DOOR IN A KNEEJERK RESPONSE TO THE POLITICAL TURMOIL BUT EVEN EUROPEAN ANALYSTS SAID THERE WERE OTHER REASONS BESIDES RUSSIA THAT PROMPTED THE SELLING RUSSIA HAS PROVIDED AN EXCUSE RATHER THAN A REASON FOR EUROPE TO RETREAT SAYS MARTIN PALING INTERNATIONAL INVESTMENT STRATEGIST AT JAMES CAPEL SECURITIES LTD IN LONDON STRATEGISTS SAY THAT US STOCK AND BOND MARKETS ARE THE LEAST LIKELY TO SUFFER FROM UNREST IN RUSSIA WE ARE IN FOR A PERIOD OF PROLONGED IMPASSE IN RUSSIA AT MINIMUM WARNS ROBERT HORMATS VICE CHAIRMAN OF GOLDMAN SACHS INTERNATIONAL AND THAT WILL CERTAINLY SOUR THE ECONOMIC CLIMATE IN EUROPE WHICH IS ALREADY IN A RECESSION AS WELL AS HAVE NEGATIVE IMPLICATIONS FOR THE AMERICAN MARKETS BUT OF ALL THE MAJOR MARKETS WE IN US ARE PROBABLY THE LEAST VULNERABLE HE ADDS MR HORMATS SAYS THE MAIN CONCERN FOR US INVESTORS WILL BE THE IMPACT OF THE RUSSIAN SITUATION ON THE US FEDERAL BUDGET IF THE US IS FORCED TO INCREASE FOREIGN AID TO RUSSIA AND ALSO PUT THE BRAKES ON DEFENSE SPENDING CUTS THEN AMERICA'S HOPES FOR A PEACE DIVIDEND COULD BE SERIOUSLY JEOPARDIZED HE SAYS IN RECENT MONTHS THE US STOCK MARKET AND TO A GREATER EXTENT BOND MARKET HAVE BEEN RALLYING ON EXPECTATIONS THAT SAVINGS FROM HEAVY CUTS IN US DEFENSE SPENDING CAN BE REDEPLOYED TOWARD REDUCING THE BUDGET DEFICIT BUT IF THE US ISN'T ABLE TO CUT DEFENSE EXPENDITURES AND THE DEFICIT AS MUCH AS IT HAD HOPED THEN US INTEREST RATES COULD RISE AT THE MARGIN THIS IS MORE NEGATIVE FOR THE BOND MARKET THEN THE STOCK MARKET BUT IT'S NOT A DISASTER FOR EITHER MR HORMATS SAYS SIMILARLY MICHAEL METZ INVESTMENT STRATEGIST AT OPPENHEIMER & CO SAYS HE BELIEVES THE RECENT POLITICAL INFIGHTING IN RUSSIA COULD STRENGTHEN THE HANDS OF MILITARY HAWKS IN THE US CONGRESS THERE IS A VERY BIG CONSTITUENCY THAT WOULD LIKE TO MAINTAIN HIGH DEFENSE SPENDING AND THIS REINFORCES THEM HE SAYS MR METZ SAYS HE RECEIVED A NUMBER OF CALLS YESTERDAY FROM CLIENTS WHO WERE ASKING WHETHER THEY SHOULD VIEW THE SELLOFF AS AN OPPORTUNITY TO BUY STOCKS BUT INSTEAD OF SUGGESTING THEY JUMP INTO THE MARKET MR METZ SAYS HE TOLD THEM THIS IS THE ONE TIME WHEN I MIGHT SAY THERE IS NOTHING WRONG WITH MAINTAINING CASH EVEN IF THE US ISN'T FORCED TO BOOST DEFENSE SPENDING MR METZ SAYS THE TURMOIL IN RUSSIA COULD SPUR INFLATIONARY PRESSURES HERE AND IN EUROPE ONE OF THE REASONS PRICES OF INDUSTRIAL METALS AND OIL HAVE BEEN SO LOW IS THAT THE RUSSIANS HAVE BEEN FLOODING THE WORLD MARKET WITH THESE COMMODITIES IF THERE IS A CIVIL WAR IN RUSSIA THESE STEADY SUPPLIES COULD BE DISRUPTED MR METZ SAYS BUT MERRILL'S MR CLOUGH IS MORE SANGUINE SAYING HE BELIEVES THE RUSSIAN THREAT IS EXAGGERATED DESCRIBING TROUBLED RUSSIA AS ONE OF THE GREAT CORPORATE RESTRUCTURINGS OF OUR TIME MR CLOUGH SAYS THE NATION IS IN NO POSITION TO BECOME A THREAT TO THE WESTERN WORLD GOLDMAN'S MR HORMATS TOO WARNS US INVESTORS AGAINST MAKING ARMAGEDDON BETS ON THE EXPECTATION THAT RUSSIA WILL COLLAPSE AND FINANCIAL MARKETS WILL BE SHAKEN RATHER HE SAYS INVESTORS WHO ARE WORRIED ABOUT THE DETERIORATING POLITICAL AND ECONOMIC SITUATION IN RUSSIA CAN START UNDERWEIGHTING THEIR STOCK INVESTMENTS IN FINLAND AND GERMANY AND BOOSTING THEIR HOLDINGS OF US DEFENSE SHARES JOE ROONEY STRATEGIST FOR LEHMAN BROTHERS INTERNATIONAL SAID WHILE EUROPEAN MARKETS HAVE REACTED NEGATIVELY TO EVENTS IN RUSSIA THE LOSS OF THE PEACE DIVIDEND ISN'T AS GREAT TO EUROPE AS IT IS TO THE US IT IS CLINTON AND CLINTON'S BUDGET THAT HAVE THE GREATEST RESTING ON A PEACE DIVIDEND COMING THROUGH MR ROONEY SAYS ONE REASON THAT EUROPEAN MARKETS WERE HIT YESTERDAY ANALYSTS SAY IS THAT EUROPEAN STOCKS ALREADY HAVE HAD A GOOD RUN THIS YEAR THERE IS ALSO GROWING FRUSTRATION THAT INTEREST RATES IN EUROPE PARTICULARLY GERMANY AREN'T FALLING FASTER SHOULD THE TURMOIL IN RUSSIA DEGENERATE INTO AN ALLOUT CIVIL WAR RESULTING IN THE BREAKUP OF STATES THE GERMAN STOCK MARKET OBVIOUSLY WILL BEAR THE BRUNT OF THE CRISIS ANALYSTS SAY GERMAN BANKS LED BY DEUTSCHE BANK AG ARE THE MAIN PRIVATE SECTOR CREDITORS TO RUSSIA AND ARE CURRENTLY INVOLVED IN A VARIETY OF NEGOTIATIONS ON DEBT MANY GERMAN BANKS ALREADY HAVE PROVIDED FOR THE POSSIBILITY THAT THESE LOANS TO RUSSIA WILL BECOME A PROTRACTED ISSUE AND WON'T BE PAID OFF ANYTIME SOON BUT STILL IT IS A SECTOR THAT'S VULNERABLE SAYS RICHARD DAVIDSON EQUITY STRATEGIST AT MORGAN STANLEY INTERNATIONAL IN LONDON 9303230026 930323 CAMBRIDGE SHOPPING CENTRES TORONTO CAMBRIDGE SHOPPING CENTRES LTD SAID IT EXPECTS TO RAISE 105 MILLION CANADIAN DOLLARS US843 MILLION FROM THE SALE OF SECURED DEBENTURES THE DEBENTURES WHICH ARE TO BE SOLD TO SEVERAL PRIVATE INSTITUTIONAL INVESTORS WILL BE SECURED BY MORTGAGES ON A NUMBER OF THE COMPANY'S SHOPPING MALLS IN CANADA THE TRANSACTION IS EXPECTED TO CLOSE LATER THIS MONTH CAMBRIDGE A TORONTO REAL ESTATE CONCERN SAID THE PROCEEDS WILL BE USED TO REPAY EXISTING MORTGAGES TO REDUCE FLOATINGRATE BANK DEBT THE DEBENTURES WILL BE ISSUED IN THREE SERIES C37 MILLION OF 869 DEBENTURES MATURING MARCH 31 1998 C15 MILLION OF 938 DEBENTURES DUE MARCH 31 2003 AND C53 MILLION OF 1018 DEBENTURES DUE MARCH 31 2013 9303230025 930323 MARKETING & MEDIA NBCSPONSORED INQUIRY CALLS GM CRASH ON NEWS PROGRAM A LAPSE IN JUDGMENT BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NBC NEWS EMPLOYEES MADE SERIOUSLY FLAWED JUDGMENTS AND VIOLATED NUMEROUS DIVISION GUIDELINES IN PUTTING TOGETHER A MUCHCRITICIZED STORY QUESTIONING THE SAFETY OF GENERAL MOTORS CORP TRUCKS AN NBCCOMMISSIONED INVESTIGATION CHARGES AND WHEN GENERAL MOTORS COMPLAINED DIRECTLY ABOUT SUPPOSED INACCURACIES AND QUESTIONABLE ETHICS INVOLVED IN THE STORY FOR DATELINE NBC NEWS STAFF FAILED TO FOLLOW ESTABLISHED RULES FOR HANDLING THE PROTEST THE REPORT STATES IT FURTHER SINGLES OUT MICHAEL GARTNER WHO RESIGNED AS PRESIDENT OF NBC NEWS ON MARCH 2 FOR CONDUCTING AN INCOMPLETE INVESTIGATION WHEN HE LEARNED BELATEDLY OF GM'S PROBLEMS WITH THE BROADCAST THE PROBE BY OUTSIDE LAWYERS RELEASED BY NBC YESTERDAY AMOUNTS TO THE MOST COMPLETE EXPLANATION YET OFFERED BY NBC IN THE SCANDAL OVER THE DATELINE NBC STORY THE NOV 17 BROADCAST INCLUDED A CRASH DEMONSTRATION USING HIDDEN TOY ROCKET ENGINES TO ENSURE THAT A GM TRUCK WOULD BURST INTO FLAMES NBC COMMISSIONED THE INVESTIGATION AFTER SETTLING A GM LAWSUIT AND ISSUING AN ONAIR APOLOGY LAST MONTH AND WHILE THE STUDY FOUND THERE WASN'T ANY INTENTION TO PRESENT FALSE INFORMATION IT IS NONETHELESS CRITICAL OF MOST OF THE NBC NEWS STAFF INVOLVED IN THE CONTROVERSY THESE JOURNALISTIC AND ADMINISTRATIVE FAILURES ARE INDEFENSIBLE NBC PRESIDENT ROBERT WRIGHT SAID IN A STATEMENT THEY SHOULD NEVER HAVE BEEN ALLOWED TO HAPPEN AND THEY MUST NOT HAPPEN AGAIN AT NBC NEWS THE REPORT CITES SERIOUS LAPSES IN JUDGMENT AND A BREAKDOWN IN THE SYSTEMS FOR CORRECTION AND COMPLIANCE THAT EVERY ORGANIZATION NEEDS IN COMMISSIONING THE MUCHCRITICIZED CRASH DEMONSTRATION FOR 4200 STAFFERS ASSOCIATED NBC NEWS WITH AN EVENT OF QUESTIONABLE SAFETY AND PROFESSIONALISM WHICH DIDN'T PROVE ANYTHING ABOUT THE SAFETY OF GM TRUCKS THE INVESTIGATION FOUND DATELINE NBC THEN FAILED TO REPORT THE RESULTS OF THE CRASH FAIRLY AND ACCURATELY USING MULTIPLE CAMERA ANGLES TO DEPICT A LARGER AND MORE THREATENING FIRE THAN REALLY OCCURRED THE REPORT CONTENDS THE FAILURE TO REVEAL THE USE OF THE TOY ROCKETS TO VIEWERS VIOLATED ACCEPTED JOURNALISTIC PRACTICES IT STATES MOREOVER NBC'S REVIEW PROCESS FAILED IN EDITING AS PRODUCERS DIVISION MANAGEMENT AND NBC LEGAL COUNSEL ALL ACCEPTED THE STORY'S REFERENCE TO UNSCIENTIFIC CRASH DEMONSTRATIONS WITHOUT ASKING WHAT IT MEANT AFTER GM COMPLAINED THE PRODUCER ON THE STORY ROBERT READ MISLEADINGLY TOLD GM THE TRUCKS USED HAD BEEN JUNKED THE REPORT SAID NBC MANAGEMENT THEN FAILED TO MOUNT A SUFFICIENT INVESTIGATION IT ADDS THAT LED TO A CONTINUED BUT UNWARRANTED DEFENSE OF THE CRASH DEMONSTRATION NBC PRESIDENT WRIGHT SAID IN HIS STATEMENT DON BROWNE ACTING PRESIDENT OF NBC NEWS SAID YESTERDAY ALL FORMAL COMPLAINTS WILL NOW BE HANDLED BY THE EXECUTIVE PRODUCER OF EACH SHOW HE ALSO NAMED DAVID MCCORMICK TO A NEW POST REVIEWING INVESTIGATIVE PIECES PRIOR TO BROADCAST AND SERVING AS AN OMBUDSMAN EACH NBC NEWS SHOW WILL HAVE A PERSON RESPONSIBLE FOR THE ACCURACY OF ALL VIDEO USED ESPECIALLY VIDEO FROM OUTSIDE SOURCES BASED ON THE REPORT'S FINDINGS NBC FORCED THE RESIGNATIONS OF DATELINE NBC EXECUTIVE PRODUCER JEFF DIAMOND SENIOR PRODUCER DAVID RUMMEL AND GM STORY PRODUCER MR READ BUT THE GENERAL ELECTRIC CO UNIT STOPPED SHORT OF FIRING THE FOURTH PERSON CLOSELY INVOLVED WITH THE PIECE CORRESPONDENT MICHELE GILLEN SHE MOUNTED A BEHINDTHESCENES CAMPAIGN OVER THE WEEKEND TO ACQUIT HERSELF AND NBC REASSIGNED HER TO AN ANCHOR POST AT NBC'S MIAMI STATION WTVJ WHILE MS GILLEN RAISED CONCERNS OVER THE PIECE THE ONLY QUESTION IS TO WHAT EXTENT NBC SAID YESTERDAY SHE SAID I OBJECTED I PROTESTED I THINK MY EMPLOYMENT STATUS RIGHT NOW REFLECTS THAT IN PREPARED STATEMENTS MR DIAMOND SAID HE ACTED APPROPRIATELY AND RESPONSIBLY AND REGRETS THE LAPSE IN PROPER PROCEDURE AND MR READ SAID THE REPORT VINDICATES THE FUNDAMENTAL HONESTY OF THE GM SEGMENT MR RUMMEL DIDN'T RETURN A PHONE CALL SEEKING COMMENT AND MR GARTNER COULDN'T BE REACHED THREE OTHER NBC EMPLOYEES WERE CRITICIZED BUT WEREN'T REPRIMANDED LAWYER ROBERTA BRACKMAN DATELINE SUPERVISING PRODUCER MARK ROSENWASSER AND EDITORIAL PRODUCER JERRY TULLY THEY WERE INSTRUCTED TO BE MORE CAREFUL IN THE FUTURE ROBERT S WARREN OF GIBSON DUNN & CRUTCHER AND LEWIS B KADEN OF DAVIS POLK & WARDWELL CONDUCTED THE INVESTIGATION INTERVIEWING MORE THAN 50 PEOPLE OVER FIVE WEEKS 9303230024 930323 PILGRIM GROUP SUES MORNINGSTAR ALLEGING LIBEL IN NEWSLETTER BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL PILGRIM GROUP INC FILED A LIBEL SUIT AGAINST MORNINGSTAR INC PUBLISHER OF A MUTUAL FUND NEWSLETTER OVER ITS CRITICISM OF TWO PILGRIM ADVERTISEMENTS FOR ITS MUTUAL FUNDS THE PILGRIM COMPLAINT FILED IN STATE SUPERIOR COURT IN LOS ANGELES ACCUSED MORNINGSTAR OF FLAGRANTLY DISTORTING THE CONTENTS OF THE PILGRIM ADS AND FALSELY IMPUTING TO PILGRIM GROUP ACTIONS AND STATEMENTS THAT IT DID NOT MAKE THE NEWSLETTER MORNINGSTAR MUTUAL FUNDS DESCRIBED AS MISLEADING THE PILGRIM ADVERTISEMENTS WHICH APPEARED IN THE WALL STREET JOURNAL ON JAN 28 AND FEB 3 THE FEB 19 NEWSLETTER SAID THAT PILGRIM GAVE THE IMPRESSION IN THE ADS THAT PILGRIM HAD THE FIVE TOP PERFORMING MUTUAL FUNDS IN 1992 IN REALITY MORNINGSTAR SAID THE PILGRIM FUNDS WERE TOP PERFORMERS ONLY IN VERY NARROW FUND CATEGORIES AND PILGRIM DID NOT HAVE ANY FUND IN THE 100 TOPPERFORMING FUNDS IN 1992 IN AN INTERVIEW YESTERDAY PALOMBA WEINGARTEN CHAIRMAN OF PILGRIM SAID THAT ALL THE STATISTICS IN THE ADVERTISEMENTS WERE ACCURATE AND WERE BASED ON DATA FROM LIPPER ANALYTICAL SERVICES INC SHE SAID THAT PILGRIM WHICH IS BASED IN LOS ANGELES IS SUING MORNINGSTAR AND THE NEWSLETTER'S PUBLISHER DON PHILLIPS FOR DEFAMATION MISREPRESENTATION SLANDER ALL THE THINGS YOU USUALLY SUE FOR UNDER THE LIBEL LAWS SHE ALSO ACCUSED MR PHILLIPS OF MILKING THE CONFLICT FOR PUBLICITY I'M CONVINCED THAT EVERYTHING WE WROTE IS TRUE AND ACCURATE SAID MR PHILLIPS THE AUTHOR OF THE ARTICLE MORNINGSTAR IS BASED IN CHICAGO THE PILGRIM LAWSUIT SEEKS 2 MILLION IN GENERAL AND OTHER DAMAGES PLUS UNSPECIFIED PUNITIVE DAMAGES 9303230023 930323 CREDIT RATINGS BELL ATLANTIC CORP STANDARD & POOR'S CORP RAISED ITS RATING ON THE SENIOR UNSECURED DEBT OF THE CHESAPEAKE & POTOMAC TELEPHONE CO OF WEST VIRGINIA UNIT TO DOUBLEAPLUS FROM DOUBLEA THE UNIT'S TOTAL LONGTERM DEBT OUTSTANDING IS 265 MILLION THE RATING UPGRADE REFLECTS THE EXPECTATION THAT C&P OF WEST VIRGINIA'S NETWORK MODERNIZATION AND FAVORABLE REGULATION WILL LET THE COMPANY IMPROVE ITS ALREADY STRONG DEBT SERVICE CAPACITY MODERNIZATION INCLUDES CONVERSION TO DIGITAL SWITCHING TECHNOLOGY AND WIDE AVAILABILITY OF ADVANCED SERVICES WHICH STANDARD & POOR'S SAID ARE VIRTUALLY COMPLETE PACIFIC ENTERPRISES LOS ANGELES STANDARD & POOR'S CORP SAID IT PLACED THIS UTILITY HOLDING COMPANY'S TRIPLEBMINUS PREFERREDSTOCK RATINGS ON CREDITWATCH WITH POSITIVE IMPLICATIONS THE RATING AGENCY SAID IT EXPECTS TO RAISE THE PREFERRED STOCK RATINGS TO TRIPLEB OR EVEN SINGLEAMINUS S&P CITED PACIFIC ENTERPRISES' PLAN TO SELL COMMON STOCK TO HELP PAY OFF MOST OUTSTANDING DEBT AT THE HOLDINGCOMPANY LEVEL EXCEPT DEBT ASSOCIATED WITH THE EMPLOYEE STOCK OWNERSHIP PLAN UPON COMPLETION OF THE STOCK SALES ANTICIPATED BY MIDYEAR AT THE EARLIEST PACIFIC ENTERPRISES WILL HAVE ROUGHLY 150 MILLION OF ESOP DEBT AND 258 MILLION OF PREFERRED STOCK THE COMPANY CURRENTLY HAS ABOUT 2 BILLION OF TOTAL DEBT AND PREFERRED STOCK OUTSTANDING S&P AFFIRMED ITS SINGLEAPLUS RATING ON SENIOR SECURED DEBT SINGLEA RATING ON SENIOR UNSECURED DEBT AND PREFERRED STOCK AND THE A1PLUS COMMERCIAL PAPER RATINGS OF THE COMPANY'S NATURAL GAS DISTRIBUTION SUBSIDIARY SOUTHERN CALIFORNIA GAS CO SHERWINWILLIAMS CO CLEVELAND MOODY'S INVESTORS SERVICE INC UPGRADED 53 MILLION IN SENIOR DEBT OF THIS COATINGS MANUFACTURER CITING ITS CONSISTENTLY STRONG PERFORMANCE AND LOW DEBT THE RATING CHANGE RAISED THE COMPANY'S SENIOR UNSECURED DEBT TO SINGLEA2 FROM SINGLEA3 ITS CONVERTIBLE SUBORDINATED DEBT TO SINGLEA3 FROM BAA1 AND THE COMPANY'S COMMERCIAL PAPER RATING TO PRIME 1 FROM PRIME 2 IT ALSO INCLUDED RAISING THE RATING ON THE COMPANY'S GUARANTEED DEBENTURE TO SINGLEA2 FROM SINGLEA3 STILL WHILE EXPRESSING CONFIDENCE IN SHERWINWILLIAMS'S LONGTERM FINANCES MOODY'S SAID THE COMPANY FACES RISKS CONCERNING LEAD PAINT LITIGATION 9303230022 930323 COURT SETS ASIDE FRENCH SALE PLAN FOR EXECUTIVE LIFE BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES A CALIFORNIA STATE APPEALS COURT SET ASIDE A PLAN CALLING FOR FAILED EXECUTIVE LIFE INSURANCE CO TO BE SOLD TO A FRENCH GROUP FORESTALLING AGAIN A RESOLUTION OF THE INSURER'S FATE THE PLAN HAD BEEN PROVISIONALLY APPROVED LAST SUMMER BY A TRIAL JUDGE BUT THE DECISION WAS CHALLENGED BY TRUSTEES FOR ABOUT 185 BILLION OF MUNICIPAL BONDS BACKED BY EXECUTIVE LIFE THEY CLAIMED THE PLAN UNDER WHICH INSURER MUTUELLE ASSURANCE ARTISANALE DE FRANCE AND PARTNERS WOULD INJECT 300 MILLION IN CASH INTO EXECUTIVE LIFE USED AN UNFAIR METHOD OF DETERMINING THE BONDS' VALUE THE APPEALS COURT AGREED IN A DECISION STRIKING DOWN THE PLAN'S TWOTIER SYSTEM OF VALUING THE BONDS AT THE PRICE BONDHOLDERS PAID FOR THEM RATHER THAN THE PAR VALUE THE COURT CITING OTHER DEFICIENCIES DIRECTED THAT THE PRIOR ORDER APPROVING THE REHABILITATION PLAN BE VACATED IN A STATEMENT CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI THE COURTAPPOINTED REHABILITATOR SAID HE WILL CONTINUE TO WORK WITH REPRESENTATIVES OF ALL PARTIES TO QUICKLY RESOLVE THESE ISSUES HE ADDED LIQUIDATION OF EXECUTIVE LIFE IS SIMPLY NOT AN OPTION A SPOKESMAN FOR THE FRENCH INVESTOR GROUP SAID WE ARE PREPARED TO WORK WITH THE COMMISSIONER TO MAKE ADJUSTMENTS IN THE PLAN WHEN IT WAS TAKEN OVER BY CALIFORNIA REGULATORS IN APRIL 1991 THE EXECUTIVE LIFE UNIT OF LOS ANGELESBASED FIRST EXECUTIVE CORP WAS ONE OF THE COUNTRY'S LARGEST INSURANCE FAILURES AND A VICTIM OF THE COLLAPSE OF THE JUNK BOND MARKET FIRST EXECUTIVE EMERGED FROM BANKRUPTCY PROCEEDINGS LAST YEAR UNDER THE CONTROL OF EXECUTIVE LIFE CREDITORS THE RECENT APPEAL IN THE EXECUTIVE LIFE CASE ALSO CONCERNED THE DATE FOR VALUING THE COMPANY'S ASSETS THE COURT AGREED WITH BONDHOLDERS WHO ARGUED THAT THE DATE THE PLAN GOES INTO EFFECT SHOULD BE THE DATE OF VALUING THE ASSETS MR GARAMENDI'S PLAN HAD SELECTED THE DATE THE COMPANY WAS SEIZED WHEN THE ASSETS WERE WORTH LESS THE TRIAL COURT ESTIMATED EXECUTIVE LIFE'S LIQUIDATION VALUE AT THE TIME OF THE SEIZURE WAS 504 BILLION UNDER THE PLAN POLICYHOLDERS WERE TO RECEIVE ABOUT 72 CENTS ON THE DOLLAR IF THEY KEPT POLICIES WITH THE NEW COMPANY TO BE RENAMED AURORA NATIONAL ASSURANCE CO FOR A MINIMUM OF FIVE YEARS POLICYHOLDERS WHO CHOSE TO OPT OUT EARLIER WOULD RECEIVE ABOUT 55 CENTS ON THE DOLLAR WHETHER THIS RULING CHANGES THAT BECAUSE OF THE VALUATION DATE ISSUE REMAINS UNCLEAR SAID MAUREEN MARR A SPOKESWOMAN FOR A POLICYHOLDERS' GROUP BUT ANY CHANGES WOULD ONLY BE IN THE PLUS COLUMN FOR POLICYHOLDERS SHE SAID 9303230021 930323 ECONOMY CBO'S BUDGET REVIEWS WIN FEW FRIENDS CLINTON IS LATEST TARGET OF CONGRESSIONAL NUMBERCRUNCHERS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN PRESIDENT CLINTON IN HIS ECONOMIC ADDRESS LAST MONTH HAILED THE CONGRESSIONAL BUDGET OFFICE FOR ITS INDEPENDENT ANALYSIS REPUBLICANS IN THE HOUSE CHAMBER LAUGHED OUT LOUD BUT THE REPUBLICANS FRUSTRATED BY THE CBO'S LONGRUNNING DISPUTES WITH GOP PRESIDENTS SHOULDN'T HAVE JEERED SO SOON JUST TWO WEEKS LATER THE OFFICE BLEW A 67 BILLION HOLE IN THE NEW DEMOCRATIC PRESIDENT'S DEFICITREDUCTION PROGRAM BY ISSUING LESSFAVORABLE ESTIMATES OF ITS POLICY PROPOSALS TO MR CLINTON'S CHAGRIN LAWMAKERS PROMPTLY RESPONDED BY SCALING BACK HIS INVESTMENT SPENDING PACKAGE TO RETOOL THE ECONOMY WE WERE VICTIMIZED COMPLAINS A SENIOR WHITE HOUSE OFFICIAL A DELIGHTED REP JOHN KASICH RANKING REPUBLICAN ON THE HOUSE BUDGET COMMITTEE SAYS HE WANTS TO PIN A MEDAL FOR COURAGE ON CBO DIRECTOR ROBERT REISCHAUER THE EPISODE MARKED AN UNUSUAL IF IRONIC TURN IN THE SPOTLIGHT FOR THE CBO A DECIDEDLY NONFLASHY COLLECTION OF NEARLY 200 NUMBERCRUNCHERS TWOTHIRDS HAVE MASTERS OR DOCTORAL DEGREES WHO OPERATE FROM A DRAB SIXSTORY BUILDING A COUPLE OF BLOCKS FROM THE CAPITOL WE DO NOT GO OUT OF OUR WAY TO SEEK HEADLINES SAYS THE LANKY AND SOFTSPOKEN MR REISCHAUER NONETHELESS THE EVOLUTION OF THE CLINTON ADMINISTRATION'S BUDGET ON CAPITOL HILL HAS PROVEN THERE'S POWER IN MR REISCHAUER'S COMPUTER PRINTOUTS IT'S NOT THE FIRST TIME DURING THE 1980S CBO ANALYSIS GIRDED CONGRESSIONAL DEMOCRATS FOR ANNUAL BUDGET BATTLES WITH PRESIDENTS REAGAN AND BUSH BY UNDERCUTTING MOREOPTIMISTIC ECONOMIC PROJECTIONS ROSY SCENARIOS AS THEY WERE KNOWN FROM THE WHITE HOUSE BUDGET OFFICE MORE SIGNIFICANTLY THE CBO'S STUDIES OF WIDENING INEQUALITY IN NATIONAL INCOME FUELED THE POTENT RICHGOTRICHER POLITICAL ARGUMENTS THAT HELPED MR CLINTON RECAPTURE THE PRESIDENCY FOR HIS PARTY IN 1992 THEY CLEARLY HAVE BEEN A TOOL OF THE DEMOCRATS' PROPAGANDA SAYS REP DICK ARMEY R TEXAS CHAIRMAN OF THE HOUSE REPUBLICAN CONFERENCE IRKED AT FAVORABLE REVIEWS FOR THE CBO'S WORK AIDES TO BUSH ADMINISTRATION BUDGET DIRECTOR RICHARD DARMAN COINED AN ACRONYM FOR THE AGENCY WIDELY RESPECTED OBJECTIVE NONPARTISAN GIMMICKFREE OR WRONG MR REISCHAUER WOULD SEEM A FITTING TARGET FOR CONSERVATIVES HE IS A HARVARDEDUCATED SON OF A HARVARD PROFESSOR THE LATE JAPAN SCHOLAR AND DIPLOMAT EDWIN O REISCHAUER ASIDE FROM THE CBO HIS OTHER PROFESSIONAL ADDRESS HAS BEEN THE BROOKINGS INSTITUTION AN ESTABLISHMENT LIBERAL THINK TANK WHERE MR REISCHAUER RESEARCHED AMONG OTHER THINGS THE URBAN UNDERCLASS BUT THE 52YEAROLD ECONOMIST MAINTAINS THAT HIS OWN POLITICAL PHILOSOPHY IS A POX ON EVERYONE'S HOUSE DEMOCRATS INCLUDED THE CBO'S WORK HE SAYS REPRESENTS THE DIFFERENCE BETWEEN BELIEVING THE REAL ESTATE AGENT WHO SAYS I'LL HAVE THE HOUSE SOLD IN TWO MONTHS' AND THE CONVERSATION WITH YOUR NEIGHBORS WHO'VE HAD THEIR HOUSES ON THE MARKET FOR THREE MONTHS THE AGENCY WAS BORN OUT OF CONFLICT BETWEEN A REPUBLICAN WHITE HOUSE AND A DEMOCRATIC CONGRESS FRUSTRATED IN BUDGET BATTLES WITH PRESIDENT NIXON DEMOCRATS CREATED THE AGENCY IN THE MID1970S TO PROVIDE INFORMATION INDEPENDENT OF THE EXECUTIVE'S OFFICE OF MANAGEMENT AND BUDGET THE FIRST DIRECTOR WAS ALICE RIVLIN NOW MR CLINTON'S DEPUTY BUDGET DIRECTOR THE FIRST PERSON SHE HIRED WAS HER BROOKINGS COLLEAGUE MR REISCHAUER BECAUSE EACH BRANCH OF GOVERNMENT MOSTLY STAYED UNDER CONTROL OF THE SAME PARTY SINCE THEN MANY REPUBLICANS CAME TO CONSIDER THE CBO A PARTISAN OPPONENT IT IS COMMON WISDOM ON CAPITOL HILL THAT IF THE DEMOCRATIC COMMITTEE CHAIRMEN WANT SOMETHING SCORED A CERTAIN WAY THEY CAN GET CBO TO DO IT FOR THEM GROUSES ROBERT GRADY A FORMER DEPUTY TO MR DARMAN HERITAGE FOUNDATION ECONOMIST DAN MITCHELL CONSIDERS THE AGENCY HONEST BUT SAYS ITS ECONOMIC MODEL GIVES SHORT SHRIFT TO THE SUPPLYSIDE THEORIES FAVORED BY SOME CONSERVATIVE REPUBLICANS MR REISCHAUER SAYS THE CBO'S ECONOMIC ANALYSIS MATCHES THE MAINSTREAM OF THE ECONOMICS PROFESSION AND HE REJECTS CHARGES OF PARTISANSHIP AS NONSENSE EVEN WIDESPREAD PRAISE FOR THE CBO'S REESTIMATES OF MR CLINTON'S PROGRAM PEEVED HIM FOR THE SUGGESTION THAT THE CBO MIGHT HAVE PULLED ITS PUNCHES THE ONE THING WE HAVE HERE MR REISCHAUER SAYS IS OUR INTEGRITY TO BE SURE THE CBO HAS IRRITATED PLENTY OF DEMOCRATS OVER THE YEARS WE ALWAYS HAD PEOPLE MAD AT US SAYS MS RIVLIN WHOSE TENURE INCLUDED THE CARTER ADMINISTRATION IN FACT SOME OF MS RIVLIN'S ALLIES CONTEND SHE GOT THE DEPUTY BUDGET DIRECTOR'S POST UNDER MR CLINTON RATHER THAN THE TOP JOB BECAUSE OF DEMOCRATIC ENEMIES SHE ACCUMULATED WHILE AT THE CBO REP DAVID OBEY D WIS A SENIOR APPROPRIATIONS COMMITTEE MEMBER SAYS HE HAS BATTLED WITH THEM MANY TIMES OVER WHAT I CONSIDER TO BE ACCOUNTING IDIOCY THE SUREST SIGN OF THE CBO'S REPUTATION MAY BE THE CURRENCY ITS ANALYSIS HAS ACHIEVED MR KASICH'S HOUSE REPUBLICAN BUDGET IS LITTERED WITH CBO CITATIONS AND MR REISCHAUER BOASTS THAT 90 OF ROSS PEROT'S DEFICITREDUCTION PROPOSALS LAST YEAR CAME FROM PUBLISHED CBO ESTIMATES EVEN THE COMBATIVE MR ARMEY SUGGESTS THE CBO'S PAST STANDS MAY HAVE HAD AS MUCH TO DO WITH INSTITUTIONAL RIVALRY AS PARTISANSHIP BY ENDORSING THE AGENCY'S ANALYSIS HE WARNS MR CLINTON HAS CEDED GROUND IN THE CONTINUING POWER STRUGGLE BETWEEN THE EXECUTIVE BRANCH AND CONGRESS HEALTH CARE COULD BECOME THE NEXT STICKING POINT SO FAR THE CBO HAS EMPHASIZED THE DIFFICULTY OF PROJECTING COST SAVINGS FROM MANAGED COMPETITION THE PLAN FAVORED BY HILLARY RODHAM CLINTON'S TASK FORCE ON HEALTHCARE OVERHAUL THE INFORMATION THAT WE PRODUCE BY AND LARGE MAKES IT HARDER FOR ANY ADMINISTRATION TO SELL ITS PROPOSALS MR REISCHAUER OBSERVES SOUNDING RESIGNED TO THE ANGRY TELEPHONE CALLS THAT RESULT YOU'VE GOT TO HAVE THE HIDE OF A RHINOCEROS OR YOU WOULDN'T SURVIVE 9303230020 930323 IMRE DRUG APPROVAL IS DELAYED SEATTLE IMRE CORP SAID FEDERAL REGULATORS WILL REQUEST MORE DATA FROM CLINICAL TESTS BEFORE RULING ON THE COMPANY'S APPLICATION TO MARKET A PRODUCT AS A TREATMENT FOR CERTAIN BLEEDING DISORDERS THAT SOMETIMES OCCUR IN CANCER PATIENTS IMRE A MEDICAL PRODUCTS COMPANY SAID THE FOOD AND DRUG ADMINISTRATION REQUESTED DATA TO COMPLY WITH REGULATIONS THAT DIDN'T EXIST WHEN THE COMPANY DID ITS ORIGINAL TESTS ON WHETHER THE PRODUCT PROSORBA IS EFFECTIVE IN TREATING BLEEDING DISORDERS ASSOCIATED WITH IMMUNE SYSTEM DEFICIENCIES THAT CAN OCCUR IN PATIENTS RECEIVING CHEMOTHERAPY IN OVERTHECOUNTER TRADING IMRE CLOSED UNCHANGED AT 25625 9303230019 930323 NOBELISTS RATE CLINTONOMICS DO YOU THINK PRESIDENT CLINTON'S ECONOMIC PLAN WILL SUCCEED IN MEETING ITS GOALS IF PASSED IN CLOSE TO ITS PROPOSED FORM DO YOU THINK THE GOALS THEMSELVES ARE WORTHY ONES RICHARD J DALEY'S FIRST LAW OF POLITICS WAS REWARD YOUR FRIENDS THIS PRESIDENT HAS EVIDENTLY LEARNED FROM THE MASTER THE BENEFITS OF HIS PROPOSED NEW INVESTMENT AND STIMULUS PACKAGES FLOW MAINLY TO TRADITIONAL DEMOCRATIC CONSTITUENCIES PLUS SOME NEW FRIENDS FROM THE SILICON VALLEYS IN CALIFORNIA TEXAS AND MASSACHUSETTS WILL THE PRESIDENT SUCCEED IN REDIRECTING GOVERNMENT RESOURCES TO THEM PROBABLY HIS CONGRESSIONAL SUPPORTERS ARE IN THE MAJORITY AFTER ALL AND THEIR CONSTITUENCIES BY AND LARGE WON'T HAVE TO PAY FOR THE NEW PROGRAMS THE TAX INCREASES FALL MAINLY ON THE TRADITIONAL REPUBLICAN CONSTITUENCIES AND THAT'S THE SECOND LAW OF POLITICS PUNISH YOUR ENEMIES SO MASSIVE ARE THE NET NEW SPENDING INITIATIVES HOWEVER AND REMEMBER THE BILL FOR HEALTHCARE EXPANSION HAS YET TO BE DELIVERED THAT THE TAX INCREASES ON HIGHINCOME FAMILIES WON'T BE ENOUGH HENCE THE PROPOSED BROADERBASED ENERGY TAX NORMALLY A NONSTARTER BUT WHICH THE ADMINISTRATION'S MASTERFUL SPIN DOCTORS MAY BE ABLE TO SELL BY EVOKING IMAGES OF WARTIME SHARED SACRIFICE AND BY HINTS RATHER THAN CLAIMS WHICH COULD BE EASILY REFUTED OF REDUCING POLLUTION A GENUINE CARBONEMISSIONS OR BETTER YET A SULFUREMISSIONS TAX WOULD BE A QUITE DIFFERENT MATTER BUT THAT WOULD STEP ON SOME SENSITIVE CONSTITUENTS' TOES ALL IN ALL A CRAFTILY CONSTRUCTED POLITICAL PROGRAM IT WON'T DO MUCH FOR ECONOMIC GROWTH SHORTTERM OR LONGTERM BUT IT SHOULD HELP AT REELECTION TIME ASSUMING OF COURSE THAT THE FEDERAL RESERVE CAN MAINTAIN A STABLE MONETARY POLICY IF ATTAINING A HIGH RATE OF ECONOMIC GROWTH AND SECURING A HIGH STANDARD OF LIVING ADEQUATE HEALTH CARE AND BETTER EDUCATIONAL OPPORTUNITIES FOR DISADVANTAGED LESS PRODUCTIVE PARTS OF OUR POPULATION ARE THE AIMS OF PRESIDENT CLINTON'S PLAN THE PACKAGE OF FISCAL AND ECONOMIC MEASURES PROPOSED BY HIM CAN REPRESENT ONLY THE FIRST PHASE OF A CONTINUOUS PLANNING PROCESS ACTIVE GOVERNMENT PLANNING SIMILAR TO THAT SUCCESSFULLY CARRIED OUT FOR MANY YEARS IN JAPAN AND TO SOME EXTENT IN NORWAY REQUIRES MUCH MORE THAN THE COMPILATION AND EXAMINATION OF CONVENTIONAL AGGREGATIVE ECONOMIC AND BUSINESS INDEXES TO DECIDE WHICH INDUSTRIES SHOULD BE ACTIVELY ENCOURAGED AND WHICH ADVISED TO WATCH THEIR STEPS IT IS NECESSARY TO STUDY IN DEPTH THE HEALTH AND FUTURE PROSPECTS OF ALL PARTS OF THE US ECONOMY THEIR MUTUAL INTERDEPENDENCE AS WELL AS THEIR RELATIONSHIPS TO FOREIGN COMPETITORS SUPPLIERS AND CUSTOMERS THE NECESSARY INFORMATION HAS TO BE DETAILED AND UPTODATE THESE ARE TASKS THAT IN THEIR HALCYON DAYS WERE PERFORMED ALBEIT IN A RATHER UNCOORDINATED FASHION BY THE CENSUS BUREAU THE BUREAU OF LABOR STATISTICS THE RESEARCH DIVISIONS OF THE AGRICULTURE DEPARTMENT AND OTHER FEDERAL AGENCIES EXEMPLARY WORK OF THIS KIND BUT ON A VERY LIMITED SCALE IS NOW BEING CARRIED OUT BY THE CONGRESSIONAL OFFICE OF TECHNOLOGY ASSESSMENT PRESIDENT CLINTON AND HIS ECONOMICS TEAM AS WELL AS CONGRESSIONAL LEADERS SUPPORTING THEM SHOULD REALIZE THAT WITHOUT MASSIVE AND VERY COSTLY REHABILITATION THE UNDERSTAFFED AND UNDERBUDGETED GOVERNMENT AGENCIES WILL NOT BE ABLE TO CARRY OUT THESE NECESSARY DATAGATHERING AND ANALYTICAL TASKS SINCE MAJOR QUITE LEGITIMATE BUSINESS INTERESTS ARE BOUND TO BE AFFECTED BY GOVERNMENT ACTIONS THESE TASKS CANNOT BE SAFELY SUBCONTRACTED TO INDEPENDENT RESEARCH ORGANIZATIONS THE DANGER IS THAT AFTER THE PACKAGE IS ACCEPTED THE PLANNING PROCESS WILL INEVITABLY BE REDUCED TO THE USUAL SEQUENCE OF UNCOORDINATED INTERVENTIONS BY FAILING TO ENSURE NORMAL MONEY GROWTH THROUGH 1992 THEREBY KEEPING THE ECONOMY BELOW POTENTIAL ALAN GREENSPAN AND HIS COLLEAGUES HAVE ENSURED THAT IF LEFT ALONE THE ECONOMY WILL DO WELL MR CLINTON'S SHORTTERM PROGRAM WILL BE HAILED A SUCCESS WITHOUT RELATIONSHIP TO CAUSAL CONNECTION THE LONGTERM PROGRAM INCLUDES 1 REDUCING THE DEFICIT 2 RESTORING PROGRESSIVITY AND PARTICULARITY IN TAXATION 3 IMPROVING INTERNATIONAL COMPETITIVENESS AND 4 REFORMING THE MEDICAL CARE SYSTEM DESPITE MISGIVINGS ABOUT HIGHER TAXES AMERICANS GENERALLY SUPPORT THE PRESIDENT'S PROPOSALS FOR TAX INCREASES BECAUSE HE HAS PERSUADED THEM THAT THE BUDGET DEFICIT WILL BE SIGNIFICANTLY REDUCED BUT IF THE PAST 12 YEARS ARE ANY GUIDE THEY WILL BE BADLY DISAPPOINTED SINCE FEDERAL SPENDING IS LIKELY TO EXPAND AS TAX REVENUES GROW I DO NOT CLAIM AN IRON LAW OF DEMOCRATIC POLITICS THAT EXPENDITURES ALWAYS INCREASE BY MORE THAN ADDITIONAL REVENUE BUT POWERFUL FORCES DO PUSH IN THIS DIRECTION IT IS TESTIMONY TO THE STRENGTH OF SPENDING POLITICS THAT THE CLINTON TEAM'S SEARCH FOR PROGRAMS THAT DON'T WORK OR ARE NO LONGER NEEDED FOUND ONLY 11 THAT SOME TAX INCREASES ARE DISGUISED AS SPENDING CUTS AND THAT THE PRESIDENT ATTEMPTS TO PUT THE ONUS OF CUTBACKS ON THE OPPOSITION BY CHALLENGING THE REPUBLICANS TO SUGGEST PROGRAMS TO BE SLASHED THE DEVASTATING WEAKNESS IN HIS PLAN IS THAT MUCH OF THE EMPHASIS IS ON CORPORATE AND PERSONAL INCOMETAX INCREASES THAT WILL ADVERSELY AFFECT WORK AND INVESTMENT INCENTIVES THE PROPOSALS REFUSE TO BOLDLY CONFRONT THE FACT THAT THE BUDGET DEFICIT IS A SERIOUS PROBLEM IN GOOD PART BECAUSE OF EXCESSIVE GOVERNMENT SPENDING THE ENORMOUS PRESSURES ON THE FEDERAL GOVERNMENT TO SPEND ON THOUSANDS OF PROGRAMS FAVORED BY GROUPS WITH POLITICAL CLOUT APPARENTLY PERSUADED THE PRESIDENT NOT TO PROPOSE A LARGE NET REDUCTION IN SPENDING HIGHER EXPENDITURES IN CERTAIN FIELDS PARTLY OFFSET CUTBACKS OF OTHER PROGRAMS AND SOME OF THE GREATER SPENDING HE SUPPORTS WILL DO MORE HARM THAN GOOD INCLUDING THE 30 BILLION TO FIGHT A RECESSION THAT APPEARS TO BE OVER AND A NEW INDUSTRIAL POLICY THROUGH AID TO BUSINESS DEVELOPMENT OF COMMERCIALLY VIABLE TECHNOLOGIES YES I BELIEVE THAT PRESIDENT CLINTON'S PLAN WOULD BROADLY SUCCEED IN MEETING HIS GOALS A RAPID RETURN TO THE FULL EMPLOYMENT OF MEN AND RESOURCES REDUCING THE DEFICIT INVESTING IN PHYSICAL AND HUMAN CAPITAL SOME REDISTRIBUTION OF THE TAX BURDEN IN FAVOR OF MIDDLE AND LOWER INCOMES AND ALL THIS WITHOUT SIGNIFICANT UNFAVORABLE EFFECTS ON ECONOMIC INCENTIVES HOWEVER I SUGGEST THAT THE FINAL ANSWER TO THIS QUESTION MUST WAIT UNTIL WE SEE HIS HEALTH PROGRAM AND ITS FINANCING ON THE WHOLE I SUPPORT THESE GOALS AND THAT IS WHY I SUPPORTED HIS PROGRAM IN ITS BROAD DESIGN FROM THE BEGINNING HOWEVER I HAVE RESERVATIONS ABOUT HIS PROPOSAL FOR A LARGE NUMBER OF COSTLY NEW PROGRAMS AT A TIME WHEN JUST BRINGING THE DEFICIT UNDER CONTROL WILL REQUIRE SIGNIFICANT SACRIFICE UNLESS WE SCRAP LESS IMPORTANT PROGRAMS NOW IN THE BUDGET OF COURSE WE SHOULD RECOGNIZE THAT THESE SACRIFICES ARE REQUIRED JUST TO PUT AN END TO THE SCANDALOUS BONUS THAT WE HAVE BEEN ENJOYING THROUGH THE BUILDUP OF THE DEBT IN THE REAGANBUSH ERA AT THE EXPENSE OF LATER GENERATIONS BUT THEN GIVING UP PART OF YOUR INCOME IS PAINFUL EVEN IF IT CAME FROM ROBBING OTHERS MY PRINCIPAL CONCERN IS WITH THE ADMINISTRATION'S PLANS TO REDO THE HEALTH CARE SYSTEM SINCE THE PLAN IS NOT FINAL AND PUBLIC MY CONCERNS ARE GENERAL RATHER THAN SPECIFIC I FEAR THAT THE HEALTH CARE PLAN WILL BOIL DOWN TO TWO BASIC ACTIONS AND ONE INACTION WHOSE COMBINED EFFECT WILL BE STRONGLY COUNTERPRODUCTIVE ACTION ONE WILL BE TO ADD FUNDS TO THE DEMAND FOR MEDICAL CARE THE INACTION WILL BE TO NOT ACTIVELY ATTEMPT TO INCREASE THE SUPPLY OF MEDICAL CARE ESPECIALLY THE SUPPLY OF PHYSICIANS THE COMBINATION OF ACTION AND INACTION WILL BE TO FURTHER INFLATE THE PRICE OF MEDICAL CARE ACTION TWO WILL BE TO ATTEMPT TO CONTROL THIS INFLATION BY IMPOSING PRICE CONTROLS WHETHER IMPOSED DIRECTILY ON HEALTH SERVICES OR INDIRECTLY ON THEIR INSURANCE THE EFFECT OF THE PRICE CONTROLS WILL BE AS ALWAYS LIKE THE PRICECONTROLINDUCED LINES AT GAS PUMPS BUT IN A HEALTH CARE SETTING EQUITY DICTATES SOME FORM OF ACTION ONE INCREASE IN ACCESS TO HEALTH CARE BY THOSE WHO CANNOT NOW AFFORD IT BUT IF THIS INCREASE IN HEALTH CARE TO THE POOR IS NOT TO BE MATCHED BY AN EQUAL DECREASE TO THE UNPOOR SIMPLE ARITHMETIC IMPLIES THAT THE SUPPLY OF HEALTH CARE MUST BE INCREASED IN PARTICULAR WE MUST EXAMINE AND REDUCE ARTIFICIAL BARRIERS TO THE SUPPLY OF PHYSICIANS INCLUDING THE SUPPLY OF USTRAINED PHYSICIANS AND FOREIGNTRAINED PHYSICIANS WHO CAN MEET US STANDARDS THE CLINTON ADMINISTRATION HAS PROPOSED ADMIRABLE GOALS TO REDUCE THE FEDERAL BUDGET DEFICIT TO REDUCE UNEMPLOYMENT TO MAKE THE US MORE COMPETITIVE IN WORLD MARKETS TO REVERSE RECENT TENDENCIES TOWARD INCREASING ECONOMIC INEQUALITY AND MANY OTHER OBJECTIVES THAT ARE TOO NUMEROUS TO MENTION IN A BRIEF STATEMENT I HAVE MADE SEVERAL INDEPENDENT ESTIMATES OF THEIR PROGRAM AND CALCULATE THAT BY 1996 THE DEFICIT FIGURE SHOULD BE ABOUT 150 BILLION AND THE UNEMPLOYMENT RATE 6 WITH AN INFLATION RATE UNDER 5 OVER THE COURSE OF THE NEXT FOUR YEARS THE ECONOMY SHOULD GROW SLIGHTLY IN EXCESS OF 3 ON AVERAGE AND THAT WILL CONTRIBUTE TO OVERALL IMPROVEMENT ESPECIALLY TO DEFICIT REDUCTION IN ORDER TO ACHIEVE ITS OBJECTIVE THE PROGRAM WOULD HAVE TO GET ACCOMMODATION FROM THE FEDERAL RESERVE I ASSUMED THAT SHORTTERM RATES WOULD BE BROUGHT BY MONETARY POLICY 100 BASIS POINTS BELOW THE UPWARD PATH THAT WOULD BE GENERATED BY THE RECOVERY PROGRAM IN MY CALCULATIONS I ASSUMED LIMITATIONS ON MEDICARE/MEDICAID OUTLAYS AND THE IMPOSITION OF TAXES ON TOBACCO AND ALCOHOL WE MUST AWAIT A REPORT ON THIS PHASE OF THE PROGRAM AS WELL AS NEW GENERAL SPENDING REDUCTIONS ALSO I HAD ASSUMED DEFENSE SPENDING CUTS OF 32 BILLION A YEAR BY 1996 TOGETHER WITH SOMEWHAT STRONGER INVESTMENT TAX CREDITS AND ACCELERATED DEPRECIATION I THINK THAT IT IS UNFORTUNATE THAT THE ADMINISTRATION PROPOSED EXCESSIVE FINETUNING OF BUSINESS TAX INCENTIVES AND NEGLECTED DOING ANYTHING ABOUT DEPRECIATION ACCOUNTING MY ONLY CRITICISM OF THE PROGRAM IS THAT IT IS TOO TIMID IN RECOMMENDING IMMEDIATE STIMULI EITHER FROM TAX CONCESSION OR PUBLIC SPENDING AND THAT THE PACKAGE AS A WHOLE IS OVERLY COMPLICATED THE GOALS ARE CERTAINLY WORTHY THEY ARE THE PLAN CANNOT SOON ATTAIN ALL THESE GOALS BUT IT MOVES THE COUNTRY IN THE RIGHT DIRECTIONS A HISTORIC CHANGE FROM THE ILLUSIONS AND IDEOLOGIES OF REAGANOMICS AND THE INSENSITIVITY AND IRRELEVANCE OF THE BUSH PRESIDENCY RECOVERY SHOULD BE WITHIN REACH HOWEVER PRESIDENT CLINTON IS TAKING A CONSIDERABLE RISK BY MINIMIZING FISCAL STIMULUS WHILE STILL ACKNOWLEDGING THE NEED FOR IT HE GIVES PRIORITY TO MOBILIZING SUPPORT FOR DEFICIT REDUCTION MAYBE HE AND WE WILL BE LUCKY AND THE ECONOMY WILL CREATE ALL THOSE JOBS ON ITS OWN DESPITE BASE CLOSINGS CORPORATE DOWNSIZING AND HIGHER TAXES MORE LIKELY THE ADMINISTRATION WILL NEED EXTRAORDINARY HELP FROM ALAN GREENSPAN TO KEEP RECOVERY ON TRACK THE SECOND GOAL REQUIRES ALLOCATING MORE GDP TO PRIVATE AND PUBLIC INVESTMENTS IN MODERN EQUIPMENT TECHNOLOGY EDUCATION AND TRAINING AND ACCUMULATION OF FOREIGN ASSETS DEFICIT REDUCTION RELEASING SAVING FOR PRIVATE INVESTMENT IS ONE MEANS TO THIS END PROVIDED THE RECOVERY DOES NOT FALTER MR CLINTON'S PUBLIC INVESTMENT INITIATIVES ARE NO LESS ESSENTIAL FOR FUTURE LIVING STANDARDS IT WILL TAKE A LONG TIME TO MAKE UP FOR YEARS OF NEGLECT THE TAX AND SPENDING PROPOSALS PROMISE MODEST PROGRESS IN REVERSING THE 1980S TREND TOWARD GREATER INEQUALITY ULTIMATELY THE SUCCESS OF THIS ECONOMIC PLAN IN MEETING ITS THREE GOALS WILL DEPEND ON HEALTH CARE REFORM AN EVEN MORE FORMIDABLE CHALLENGE THE CLINTON ECONOMIC PROGRAM AS IT WAS CONCEIVED PROPOSED TO THREAD ITS WAY TOWARD TWO GOALS THAT ARE NOT INCONSISTENT BUT THAT NEED CAREFUL TIMING AND MANAGEMENT THE SHORTRUN GOAL WAS TO CONVERT A WEAK AND HESITANT RECOVERY INTO SOMETHING THAT COULD PERSIST AND STRENGTHEN AND EVENTUALLY RESIST THE INEVITABLE RESTRAINT THAT MUST COME FROM DEFICIT REDUCTION THE LONGRUN GOAL WAS TO ASSIST THE ECONOMY TOWARD A HIGHER RATE OF INVESTMENT IN ALL FORMS PUBLIC AND PRIVATE MATERIAL AND HUMAN AND A HIGHER RATE OF DOMESTIC SAVING TO FINANCE IT A PARTIAL EMPHASIS ON HUMAN CAPITAL MIGHT SERVE THE ADDITIONAL PURPOSE OF REVERSING THE DRIFT TOWARD GREATER INEQUALITY THAT BEGAN BEFORE MESSRS REAGAN AND BUSH BUT WAS REINFORCED BY THEIR POLICIES DEFICIT REDUCTION IS FOR BETTER OR WORSE THE SUREST WAY OF GENERATING DOMESTIC SAVING TO MATCH ADDITIONAL INVESTMENT IF GROWTH AND EQUITY ARE NOT WORTHY GOALS FOR ECONOMIC POLICY I WONDER WHAT ARE THE PROGRAM ITSELF WAS BY HISTORICAL STANDARDS VERY WELL TUNED TO ITS STATED GOALS I MIGHT HAVE PREFERRED TO PUSH A LITTLE HARDER ON BOTH THE STIMULUS PART AND THE SAVINGINVESTMENT PART OF THE PACKAGE NEVERTHELESS I THINK THE PROGRAM WAS A RATIONAL AND MODERATE STEP TOWARD A BETTER ECONOMIC FUTURE GOD IS IN THE DETAILS AND CONGRESS MIGHT HAVE BEEN ABLE TO MAKE IMPROVEMENTS HERE AND THERE PREFERABLY IN THE DIRECTION OF IMPROVING THE FIT BETWEEN ENDS AND MEANS INSTEAD WE HAVE HAD MOSTLY THE USUAL CLOUD OF VAPID SLOGANS WITH LESS POSTURING AND SOME HELP FROM THE FEDERAL RESERVE IT MIGHT STILL GET DONE PRESIDENT CLINTON CALLS FOR WIDESPREAD SACRIFICE BY THE MANY THROUGH HIGHER TAXES AND CONCENTRATED BENEFITS TO THE FEW THROUGH ADDITIONAL GOVERNMENT SPENDING CONTRIBUTIONS AND INVESTMENT IN CLINTON DOUBLESPEAK THE COUNTRY NEEDS PRECISELY THE REVERSE WIDESPREAD BENEFITS TO THE MANY THROUGH LOWER TAXES AND LOWER GOVERNMENT SPENDING AND CONCENTRATED SACRIFICE BY THE FEW THROUGH ABOLISHING NUMEROUS GOVERNMENT PROGRAMS THAT IF THEY WERE EVER JUSTIFIED NO LONGER ARE AGRICULTURAL SUBSIDIES AND PRICE SUPPORTS RURAL ELECTRIFICATION ADMINISTRATION AMTRAK SUBSIDIES TO THE HUMANITIES ARTS BROADCASTING TO MENTION ONLY A FEW THESE PROGRAMS COST TAXPAYERS A MULTIPLE OF ANY GAINS TO THE INTENDED BENEFICIARIES IN AGRICULTURE FOR EXAMPLE MOST OF THE MONEY PAYS FOR THE GROWING STORING AND DISPOSING OF FOOD RENDERED SURPLUS BY HIGH GOVERNMENT FIXED SUPPORT PRICES AND FOR ADMINISTERING THE PROGRAM LITTLE OF THE MONEY TRICKLES DOWN TO THE INDIVIDUAL FARMER WOULD CONSUMERS REGARD THE LOWER PRICES FOR FOOD THAT WOULD FOLLOW THE ENDING OF THESE SUBSIDIES AND PRICE SUPPORTS AS A SACRIFICE GOVERNMENT IS ALREADY TOO BIG TOO INTRUSIVE TOO DESTRUCTIVE OF OUR CIVIL AND PERSONAL LIBERTY PRESIDENT CLINTON WOULD TAKE US FARTHER DOWN THE SAME ROAD THAT WILL MEAN SLOWER NOT FASTER ECONOMIC GROWTH MORE GOVERNMENT SPENDING NOT LESS AND VERY LIKELY HIGHER DEFICITS MORE IMPORTANT IT WILL EXACERBATE OUR MAJOR SOCIAL PROBLEMS ALL OF WHICH DERIVE PRIMARILY FROM EXCESSIVE AND INEFFICIENT GOVERNMENT WHETHER IT BE THE DISGRACEFUL STATE OF PRIMARY AND SECONDARY EDUCATION THE EXPLOSION IN CRIME THE UNGOVERNABILITY OF INNER CITIES OR THE RISE IN THE COST OF MEDICAL CARE