BETHPAGE NY GRUMMAN CORP CONTINUING DEBTREDUCTION EFFORTS SAID IT WILL REDEEM 556 MILLION OF DEBENTURES ON APRIL 20 THE AEROSPACE COMPANY WILL CALL ITS 10 1/2 SINKING FUND DEBENTURES DUE FEB 15 2011 THE REDEMPTION PRICE IS 107 MILLION PLUS ACCRUED INTEREST LAST YEAR GRUMMAN PAID OFF ITS ENTIRE BANK DEBT OF 250 MILLION REDEEMED ITS 323 MILLION OF PREFERRED STOCK AND REPURCHASED 194 MILLION OF 10 1/2 DEBENTURES LAST MONTH THE COMPANY REDEEMED ITS 75 MILLION OF 9 1/2 NOTES 9303230017 930323 WHO'S NEWS GEORGE DALY NAMED DEAN OF STERN SCHOOL OF BUSINESS AT NYU NEW YORK GEORGE G DALY DEAN OF THE UNIVERSITY OF IOWA'S BUSINESS SCHOOL WAS APPOINTED DEAN OF NEW YORK UNIVERSITY'S STERN SCHOOL OF BUSINESS EFFECTIVE AUG 1 DR DALY 52 YEARS OLD WILL SUCCEED RICHARD R WEST WHO ANNOUNCED LAST MAY THAT HE WOULD STEP DOWN FROM THE POST TO RETURN TO TEACHING DR WEST 55 HAS HEADED STERN SINCE 1984 DR DALY DEAN AT IOWA SINCE 1983 WILL TAKE OVER ON THE HEELS OF MAJOR CHANGES AT STERN CONSIDERED ONE OF THE NATION'S TOP 20 BUSINESS SCHOOLS THE SCHOOL RECENTLY COMPLETED A NEW 68 MILLION FACILITY WHICH ALLOWED STERN TO MOVE ITS GRADUATE DIVISION LONG LOCATED NEAR WALL STREET NEARER TO ITS UNDERGRADUATE PROGRAM ON THE UNIVERSITY'S GREENWICH VILLAGE CAMPUS LIKE MANY BUSINESS SCHOOLS RECENTLY STERN ALSO HAS UNVEILED A NEW CURRICULUM STRESSING INTERNATIONAL BUSINESS AND TEAMWORK SKILLS THE CURRICULUM WILL BE OFFERED TO ALL MBA STUDENTS THIS FALL FOLLOWING A PILOT LAUNCH LAST YEAR THE JOB NOW IS TO MAKE SURE THE BUSINESS SCHOOL CAPITALIZES ON ALL THESE ELEMENTS AND CONTINUES TO ATTRACT THE BEST STUDENTS AND THE BEST FACULTY DR DALY A SPECIALIST IN APPLIED MICROECONOMICS AND SPORTS CONTRACTING SAID IN AN INTERVIEW AMONG OTHER GOALS DR DALY SAID THAT HE HOPES TO GENERATE SIGNIFICANT NEW DONATIONS TO THE SCHOOL AND TO RAISE STERN'S PUBLIC PROFILE AT IOWA DR DALY OVERSAW THE FINANCING AND CONSTRUCTION OF A 35 MILLION BUILDING FOR THE BUSINESS SCHOOL BOOSTED THE REPRESENTATION OF WOMEN AND MINORITY STUDENTS AND PROFESSORS AND INCREASED FUND RAISING BEFORE IOWA DR DALY HELD POSTS AT THE UNIVERSITY OF HOUSTON AND THE UNIVERSITY OF VIRGINIA HE ALSO SERVED BRIEFLY AS A WHITE HOUSE ECONOMIST IN THE NIXON ADMINISTRATION 9303230016 930323 BIG BET FORD IS TURNING HEADS WITH 6 BILLION COST TO DESIGN WORLD CAR' AIMED AT BUYERS IN EUROPE AND AMERICA MONDEO TESTS A GLOBAL STRATEGY WE'RE BACK TO THE MODEL T' BY ROBERT L SIMISON AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL BRENTWOOD ENGLAND IN THE FLAT WOODED ESSEX COUNTRYSIDE NEAR ITS EUROPEAN HEADQUARTERS HERE FORD MOTOR CO HAS BEEN PREPARING A 6 BILLION ROLL OF THE DICE THAT IS HOW MUCH IT COST TO DEVELOP THE MONDEO A NEW SMALL SEDAN THAT WILL BE INTRODUCED IN EUROPE THIS SPRING AND WITH SLIGHTLY DIFFERENT STYLING IN NORTH AMERICA IN MID1994 THE ONEYEAR LAG IS TO ALLOW THE SAME TEAM OF ENGINEERS TO DIRECT FACTORY LAUNCHES IN BOTH GENK BELGIUM AND KANSAS CITY MO BUT THE CAR ITSELF WHICH IS GETTING FAVORABLE REVIEWS AND SEEMS COMPETITIVE ENOUGH ISN'T ATTRACTING NEARLY AS MUCH ATTENTION AS THE 6 BILLION PRICE TAG THAT IS TWO OR THREE TIMES WHAT FORD'S COMPETITORS HAVE SPENT TO DEVELOP RECENT NEW CARS I CAN'T BELIEVE THEY SPENT THAT MUCH SAYS JUERGEN FRITSCH THE CHIEF OF A NEWPRODUCT TEAM AT GENERAL MOTORS CORP'S ADAM OPEL AG UNIT IN GERMANY I WOULDN'T I WOULDN'T EVEN PROPOSE IT MARYANN KELLER OF FURMAN SELZ INC AN OPINION LEADER AMONG AMERICAN AUTOINDUSTRY ANALYSTS SAYS I DON'T KNOW HOW FORD MANAGED TO SPEND THIS MUCH THE MONDEO SEEMS TO BE THE PRODUCT OF THE OLDFASHIONED WAY OF THROWING MONEY AT SOMETHING TO GET IT DONE IS FORD WHICH HAS BEEN STUMBLING BADLY IN EUROPE ABOUT TO FALL FLAT ON ITS FACE NOT LIKELY FORD OFFICIALS SAY THEY BELIEVE THE PROJECT COULD INSTEAD MARK A WATERSHED FOR FORD WORLDWIDE AND SETTLE A LONGSTANDING CONTROVERSY OVER THE IDEA OF DESIGNING A SINGLE PRODUCT TO SUIT ALL THE WORLD'S MARKETS IN ANY CASE THE PROJECT THROWS INTO SHARP RELIEF ONE OF THE BIGGEST ISSUES FACING THE AUTO INDUSTRY HOW TO DEVELOP NEW CARS EFFICIENTLY TO COMPETE IN A GLOBAL MARKET I'LL TELL YOU RIGHT UP FRONT I'M NOT THE LEAST BIT DEFENSIVE ABOUT THE 6 BILLION NUMBER DECLARES ALEXANDER J TROTMAN HEAD OF FORD'S WORLDWIDE AUTO OPERATIONS HE ACKNOWLEDGES THAT THE MONDEO REPRESENTS THE BIGGEST SINGLE INVESTMENT IN FORD'S HISTORY IT IS A LOT OF MONEY BUT IT'S AN IMMENSE PROJECT HE SAYS MUCH BROADER IN SCOPE THAN MOST PEOPLE REALIZE MR TROTMAN ADDS THAT IT IS DIFFICULT TO COMPARE DEVELOPMENT COSTS BETWEEN CAR COMPANIES BECAUSE WE RARELY TALK THE SAME LANGUAGE FORD SAYS ITS ESTIMATE CONTAINS MANY COSTS THAT COMPETITORS DON'T INCLUDE BUT THERE IS LITTLE QUESTION THAT THE FIVE YEARS FORD DEVOTED TO THE EFFORT MADE IT MORE COSTLY THAN PROGRAMS TAKING THREE YEARS OR LESS NOW THE INDUSTRY TARGET CLEARLY EFFICIENCY IN PRODUCT DEVELOPMENT IS THE NEXT FRONTIER FOR FORD WHOSE CAR MANUFACTURING ALREADY IS CONSIDERED THE MOST EFFICIENT IN AMERICA THIS IS WHAT FORD IS GETTING FOR ITS 6 BILLION FIVEYEAR INVESTMENT TWO NEW FAMILIES OF MODERN HIGHTECH ENGINES A NEW LINE OF AUTOMATIC TRANSMISSIONS CAPACITY TO BUILD 700000 MONDEOS A YEAR IN EUROPE AND NORTH AMERICA AND A CAR THAT IT EXPECTS TO SELL IN HIGH VOLUMES FOR NEARLY A DECADE WITH A FRESHENING AFTER FOUR OR FIVE YEARS THE NEW POWERTRAINS AS ENGINES AND TRANSMISSIONS ARE CALLED WILL BE USED IN OTHER CAR LINES AND WILL ADDRESS A LONGTERM FORD DEFICIENCY IN BOTH NORTH AMERICA AND EUROPE THE CURRENT FOURCYLINDER ENGINE IN THE TEMPO/TOPAZ MODELS WHICH MONDEO WILL REPLACE IN THE US AND CANADA IS A VERSION OF THE SIXCYLINDER ENGINE THAT POWERED THE FORD FALCON SOME 30 YEARS AGO PERHAPS MORE IMPORTANT FOR THE LONG RUN FORD EXECUTIVES ARGUE IS WHAT THEY HAVE LEARNED ABOUT DEVELOPING A WORLD CAR MONDEO IS A NAME CREATED BY FORD BASED ON THE WORD FOR WORLD IN SUCH ROMANCE LANGUAGES AS FRENCH SPANISH AND ITALIAN IN THE PAST FORD'S HUGE AUTONOMOUS EUROPEAN AND NORTH AMERICAN AUTO OPERATIONS DESIGNED AND BUILT COMPLETELY DIFFERENT MODELS REFLECTING SHARPLY DIVERGENT NEEDS IN THE TWO MARKETS BUT NOW TASTES ARE CONVERGING FORD CONTENDS AND THE COMPANY SAYS IT CAN NO LONGER AFFORD TO DUPLICATE EFFORTS IF WE DIDN'T DO IT THIS WAY THE US AND EUROPE WOULD HAVE DONE THEIR OWN VEHICLES SAYS JACQUES NASSER THE CHAIRMAN OF FORD OF EUROPE WHAT WE HAVE IS A SHORTAGE OF PRODUCT DEVELOPMENT RESOURCES ENGINEERING PEOPLE AND THIS USES THEM MORE EFFICIENTLY HE PREDICTS WE WILL ACHIEVE A HANDSOME RETURN ON OUR INVESTMENT WHATEVER OUR INVESTMENT WAS FORD NEEDS A WINNER IN EUROPE FORD HAS BEEN THE MOST BADLY BATTERED MAJOR CAR MAKER OF THE 1990S SLIPPING FROM A SOLID NO 3 MOST OF THE LAST DECADE TO A FEEBLE NO 5 LAST YEAR THE SLIDE PARTLY REFLECTS FORD'S CONCENTRATION IN BRITAIN WHICH SPIRALED INTO A DEEP RECESSION WHILE THE REST OF EUROPE WAS BOOMING BUT IT ALSO REFLECTS DULL PRODUCTS AND UNCOMPETITIVE ENGINES NOW AS BRITAIN FINALLY RECOVERS THE REST OF THE EUROPEAN MARKET IS HEADING INTO A TAILSPIN FORD OF EUROPE'S PROBLEMS HAVE TRANSFORMED THE UNIT FROM A PERENNIAL CONTRIBUTOR OF 1 BILLION OR SO ANNUALLY TO THE PARENT COMPANY'S BOTTOM LINE IN THE LATE 1980S INTO A HUGE DRAG LAST YEAR FORD'S LOSSES IN EUROPE TOTALED 13 BILLION ON OPERATIONS INCLUDING 400 MILLION IN LOSSES BY JAGUAR CARS LTD A WHOLLY OWNED SUBSIDIARY THAT FUNCTIONS SEPARATELY FROM FORD OF EUROPE FORD TOOK AN ADDITIONAL 419 MILLION IN RESTRUCTURING CHARGES IN EUROPE ON THE WAY TO POSTING A RECORD WORLDWIDE LOSS OF 74 BILLION FORD OFFICIALS ACKNOWLEDGE THAT IN EUROPE THEY ARE COUNTING ON THE MONDEO TO REGAIN LOST MOMENTUM IT HAS TO BE A SUCCESS SAYS ONE EXECUTIVE ADDS DONALD S COOK VICE PRESIDENT SALES THE MONDEO WILL DO A LOT TO PUT A HALO BACK AROUND THE FORD OVAL IN EUROPE THE STAKES IN NORTH AMERICA ARE NEARLY AS HIGH FORD'S SHARE OF US CAR SALES JUMPED TO 22 LAST YEAR FROM JUST UNDER 20 IN 1991 BUT THE TEMPO/TOPAZ MODELS THAT MONDEO WILL REPLACE ATTRACT LOWERINCOME BUYERS WHICH MEANS THE CARS SELL LARGELY ON PRICE FORD HASN'T DECIDED WHETHER TO SELL THE MONDEO UNDER A DIFFERENT NAME IN NORTH AMERICA FORD HOPES MONDEO WILL COMMAND A HIGHER PRICE THAN THE TEMPO/TOPAZ ATTRACTING BUYERS WHO CURRENTLY FLOCK TO THE LARGER FORD TAURUS IF IT DOESN'T FORD WILL BE IN A BIND BECAUSE MONDEO WILL BE MORE EXPENSIVE TO PRODUCE THAN TEMPO/TOPAZ ALL OF THIS MAKES FORD'S DECISION TO DEVELOP A SINGLE CAR FOR BOTH MARKETS THAT MUCH RISKIER ALONE AMONG THE WORLD'S AUTO MAKERS FORD AND GM HAVE BUILT UP SUBSTANTIAL CAR COMPANIES IN BOTH EUROPE AND NORTH AMERICA WITH INDEPENDENT DESIGN MANUFACTURING AND MARKETING FUNCTIONS THE LEADING JAPANESE AUTO MAKERS NOW ARE CREATING DESIGN AND ENGINEERING CENTERS IN EUROPE AND NORTH AMERICA BUT SO FAR THE JAPANESE AND EUROPEAN CAR COMPANIES HAVE DEVELOPED CARS IN ONE PLACE THEIR HOME MARKETS AND SOLD THEM WITH MINOR VARIATIONS AROUND THE WORLD IT IS A COSTSAVING SYSTEM THAT FORD WANTS TO EMULATE AT FORD A WORLD CAR THAT COULD BE PRODUCED IN MORE THAN ONE COUNTRY HAS HAD A SEDUCTIVE ALLURE FOR YEARS THE COMPANY'S FIRST TRY WAS THE 1981 ESCORT DISPUTES BETWEEN FORD'S EUROPEAN AND AMERICAN ENGINEERS LEFT THE TWO VERSIONS WITH EXACTLY TWO PARTS IN COMMON SINCE THEN COMPETITORS AND EXPERTS HAVE DISMISSED THE IDEA AS TOO COSTLY AND LIKELY TO PRODUCE A PRODUCT THAT WOULDN'T APPEAL STRONGLY TO ANY MARKET THERE ARE EXCEPTIONS SUCH AS THE TOYOTA CAMRY BUT EVEN HONDA'S ACCORD FARED FAR BETTER IN THE US THAN IN JAPAN BECAUSE IT WAS DEVELOPED MAINLY FOR THE USHONDA'S MAJOR MARKET DESIGNING A WORLD CAR TAKES LONGER AND YOU HAVE TO MAKE TOO MANY DESIGN COMPROMISES SAYS DANIEL T JONES A PROFESSOR AT CARDIFF BUSINESS SCHOOL IN WALES AND A CONSULTANT TO THE INDUSTRY IN THE END YOU WIND UP DESIGNING IT TWICE THE CONDITIONS WERE THAT BOTH MARKETS HAD TO NEED SUBSTANTIALLY THE SAME CAR AND THAT THERE SHOULD BE ONLY ONE ENGINEERING TEAM WHEN THE 1981 ESCORT WAS DEVELOPED CONSUMER TASTES AND LEGAL REQUIREMENTS IN NORTH AMERICA AND EUROPE WERE STILL FAR APART AND FORD SET UP TWO PARALLEL DEVELOPMENT TEAMS IN EARLY 1986 MR OLDFIELD SET UP A TEAM OF ABOUT 50 NORTH AMERICAN AND 25 OR 30 EUROPEAN ENGINEERS NEAR FORD'S DEARBORN MICH HEADQUARTERS THEY WORKED OUT EARLY PARAMETERS FOR A NEW CAR CODENAMED CDW 27 IT WOULD BE A COMPACT BY US STANDARDS BUT MIDSIZED IN EUROPE WHERE CARS GENERALLY RUN SMALLER THE ENGINEERS CONCLUDED THAT THE REPLACEMENT FOR THE EUROPEAN SIERRA AND THE AMERICAN TEMPO/TOPAZ WOULD FACE SIMILAR COMPETITION ON BOTH CONTINENTS HONDA CIVICS TOYOTA COROLLAS VOLKSWAGEN PASSATS AND THE LIKE AND THEY DECIDED THE CARS WOULD NEED TO MEET SIMILAR CUSTOMER DEMANDS AND SIMILAR SAFETY AND POLLUTION STANDARDS THUS THE WORLDCAR PROJECT GOT A GREEN LIGHT AND BY EARLY 1987 MR OLDFIELD HAD MOVED THE PROJECT ACROSS THE ATLANTIC TO BRENTWOOD ABOUT 30 MILES NORTHEAST OF LONDON BECAUSE OF ITS EXPERTISE WITH CARS OF THIS SIZE FORD OF EUROPE TOOK THE LEAD RESPONSIBILITY THE TEAM GRADUALLY EXPANDED TO MORE THAN 800 ENGINEERS DESIGNERS MARKETING AND FINANCE PEOPLE ON BOTH SIDES OF THE ATLANTIC FORD ASSIGNED DIFFERENT PARTS OF THE CAR TO WHICHEVER FORD UNIT HAD THE GREATEST EXPERTISE IN ENGINES EUROPE DEVELOPED A NEW FAMILY OF FOURCYLINDER ENGINES WHICH COME IN THREE SIZES WHILE NORTH AMERICA DEVELOPED NEW V6S NORTH AMERICA HANDLED POWER STEERING AIR CONDITIONING AND AUTOMATIC TRANSMISSIONS WHILE EUROPE GOT MANUAL TRANSMISSIONS FORD GAVE MR OLDFIELD'S GROUP FIVE YEARS ABOUT STANDARD FOR FORD AT THE TIME CRITICS INCLUDING THE ANALYST MS KELLER OBSERVE THAT TODAY THE LEADING CAR MAKERS HAVE CUT DEVELOPMENT TIMES FOR NEW MODELS TO THREE YEARS SAVING TIME AND MONEY AND MAKING THEM MORE NIMBLE IN RESPONDING TO THE MARKET MR OLDFIELD REPLIES THAT THE MONDEO WAS COMPLETED IN LESS THAN THE ALLOTTED TIME AND UNDER BUDGET AND FORD SAYS ITS NEWPRODUCT CYCLES ARE CONSIDERABLY SHORTER TODAY THE NEW MUSTANG A NORTHAMERICAONLY MODEL DUE LATE THIS YEAR WILL HAVE TAKEN JUST THREE YEARS AND EVEN THOUGH THE MONDEO PROJECT IS MUCH MORE EXTENSIVE THAN THE MUSTANG REMAKE MR OLDFIELD MAINTAINS IF WE DID IT AGAIN WE COULD DO IT IN 3 1/2 YEARS ALONG THE WAY THE EUROPEAN AND NORTH AMERICAN ENGINEERS HAD TO RESOLVE SOME BASIC DIFFERENCES TO MAKE THE SIDE OF A CAR FOR EXAMPLE FORD OF EUROPE SIMPLY STAMPS OUT ONE PIECE ON A HUGE METAL PRESS IN NORTH AMERICA THEY ASSEMBLE SEVERAL PIECES STAMPED ON SMALLER PRESSES THE EUROPEAN METHOD YIELDS GREATER PRECISION BUT IS LESS FLEXIBLE AND REQUIRES HIGHER INITIAL INVESTMENT I PUT THE ENGINEERS IN A ROOM AND SAID NOT TO COME OUT UNTIL THEY AGREED MR OLDFIELD RECALLS THEY SETTLED ON THE EUROPEAN APPROACH FOR THE EXTERIOR DESIGN FORD COMMISSIONED CLAY MODELS FROM ITS FOUR DESIGN STUDIOS IN MICHIGAN CALIFORNIA ITALY AND ENGLAND WE BROUGHT THEM ALL TOGETHER AND HAD THE DESIGNERS CRITIQUE EACH OTHER'S WORK MR OLDFIELD SAYS THIS LED TO A CONSENSUS AND THE ENGLISH STUDIO DEVELOPED A FIFTH AND FINAL MODEL HERE IS WHERE FORD MAY HAVE GONE ONE COMPROMISE TOO FAR EUROPEAN MOTOR JOURNALISTS YAWN AT THE MONDEO'S PLAIN ROUNDED SHAPE NOT AROUSING COULD EASILY BE JAPANESE OBSERVES GERMANY'S AUTO ZEITUNG A FRENCH JOURNALIST DISMAYED FORD OFFICIALS WHEN HE SUGGESTED DURING A DINNER AT THE GENEVA AUTO SHOW THAT THE MONDEO LOOKED LIKE THE RELATIVELY UNSOPHISTICATED HYUNDAI ELANTRA FORD OFFICIALS DEFEND THE DESIGN AS PROVIDING A STABLE LOOK WITH A WIDE WHEELBASE THAT MOVES THE PASSENGER COMPARTMENT FORWARD CREATING A SHORT FRONT HOOD AND MAXIMUM VISIBILITY FOR THE DRIVER WE WANTED STABLE ELEGANT STYLING A DESIGN THAT WILL ENDURE SAYS DAVID TURNER FORD OF EUROPE'S DESIGN DIRECTOR YET AFTER SHOWING THE MONDEO TO CONSUMER CLINICS FORD DISCARDED THE EUROPEAN DESIGN IN FAVOR OF MORE AGGRESSIVE STYLING FOR THE US THE AMERICAN VERSIONS ONE FOR THE FORD BRAND ONE FOR MERCURY WILL BE SLIGHTLY LONGER THAN THE EUROPEAN MONDEO WITH DIFFERENT FRONT AND REAR STYLING THE INTERIORS WILL DIFFER SLIGHTLY TOO IN EUROPE THERE IS MORE DEMAND FOR CONCISENESS MR TURNER EXPLAINS THE US STYLING CHANGE ADDED COST ALTHOUGH IT ISN'T CLEAR HOW MUCH ONCE YOU START CHANGING SHEET METAL PANELS YOU LOSE SOME OF THE EFFICIENCIES SAYS MR TROTMAN STILL EVEN INCLUDING THE NORTH AMERICAN STYLING DIFFERENCES FORD SAYS THE NOTCHBACK VERSIONS OF THE CAR WILL BE ABOUT 60 IDENTICAL DESPITE THE PROJECT'S HUGE PRICE TAG FORD MAINTAINS IT DID SAVE MONEY ALTHOUGH OFFICIALS WON'T SAY HOW MUCH WE MET OUR TARGETS ON SAVINGS IN DEVELOPMENT TOOLING AND PARTS COSTS MR OLDFIELD SAYS DOING TWO CONVENTIONAL CAR PROGRAMS WOULD HAVE COST SUBSTANTIALLY MORE THAN DOING JUST ONE GLOBAL PROGRAM MOREOVER HE ARGUES FORD DEMONSTRATED IT CAN PULL OFF A TRANSATLANTIC CAR PROJECT AND WORKED OUT THE MECHANISMS FOR THE NEXT ONE STILL THERE ARE NO PLANS FOR ANOTHER WORLD CAR IN THE WORKS AT FORD MR TROTMAN SAYS FOR MONDEO SUCCESS OR FAILURE DEPENDS ON HOW THE CAR SELLS DESPITE POOHPOOHING THE CAR'S STYLING THE INFLUENTIAL EUROPEAN AUTO PRESS HAS BEEN GENEROUS WITH ITS ACCOLADES FOR THE MONDEO'S PERFORMANCE IN SEVERAL PRESS COMPARISONS WITH ITS COMPETITORS THE MONDEO HAS COME OUT ON TOP WE HAVE A NEW MASTER IN THE MIDDLE CLASS DECLARED GERMANY'S AUTO BILD IN NAMING THE MONDEO THE WINNER OF ITS TEST JOURNALISTS HAVE PRAISED THE CAR'S RIDE AND HANDLING COMFORT AND ERGONOMICS COMPLAINTS ASIDE FROM THE STYLING HAVE BEEN ABOUT EXCESSIVE ENGINE NOISE IN THE 20LITER VERSION AND NOT ENOUGH HEAD ROOM IN THE BACK SEAT PROBLEMS FORD SAYS IT HAS CORRECTED FORD SAYS IT CUT ENGINE NOISE BY WIDENING THE GEAR RATIOS AND INCREASED HEAD ROOM BY REDUCING THE THICKNESS OF THE REAR SEAT CUSHION SOME HAVE NOTED THAT THE CAR IS A LITTLE HEAVY FOR ITS CLASS WHICH WOULD HURT FUEL ECONOMY FORD ACKNOWLEDGES THE CAR WEIGHS 14 MORE THAN THE PREDECESSOR SIERRA MODEL BUT ATTRIBUTES THIS TO SUCH ADDED SAFETY FEATURES AS AIR BAGS AND SEATBELT TIGHTENERS AT LEAST INITIALLY FORD APPEARS TO BE KEEPING THE PRICE DOWN IN BRITAIN THE NEW MONDEOS ARE PRICED SLIGHTLY LOWER THAN THE SIERRAS THEY REPLACE TO SPUR SALES AND START AT 11400 16946 THE CAR'S PRICE IN GERMANY STARTING AT 30690 MARKS 18696 COMPARES FAVORABLY WITH THE MARKET BUT GERMAN MAGAZINES COMPLAIN THAT ANTILOCK BRAKES STANDARD ON SOME COMPETING MODELS COST 1670 MARKS EXTRA THE US PRICING WHILE NOT YET DETERMINED COULD BE A DIFFERENT STORY THE MONDEO ALMOST CERTAINLY WILL BE PRICED HIGHER THAN TEMPO/TOPAZ BACK IN DEARBORN FORD MANAGEMENT BOASTS THAT THE MONDEO ALREADY HAS RACKED UP 110000 WHOLESALE AND 25000 RETAIL ORDERS IN EUROPE WE HAVE ACHIEVED MORE THAN WE SAID WE WOULD SAYS MR TROTMAN IN TERMS OF PRODUCTDEVELOPMENT METHODS HE ADDS WE'RE BACK TO THE MODEL T AGAIN WE USED TO HAVE ONE DESIGN WORLDWIDE AND WE'VE TAKEN THIS BIG LONG TRIP TO GET BACK TO THE SAME POINT 9303230015 930323 BUSINESS BRIEF US AGENCY TO STUDY COMPLAINTS ON HOODS OF GM GEO METROS WASHINGTON THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION IS INVESTIGATING COMPLAINTS THAT HOODS ON GENERAL MOTORS CORP'S GEO METROS CAN POP OPEN BECAUSE OF DEFECTIVE LATCHES SAFETY ENGINEERS ARE TRYING TO DETERMINE WHETHER THE AGENCY SHOULD ORDER THE AUTO MAKER TO RECALL MORE THAN 327000 198992 METROS AN NHTSA SPOKESMAN SAID YESTERDAY THE AGENCY HAS RECEIVED 34 COMPLAINTS ABOUT THE HOODS FLYING OPEN WHILE THE CARS ARE MOVING AS WELL AS 12 MORE COMPLAINTS ABOUT LATCHES NOT OPENING OR CLOSING PROPERLY THE NHTSA ALSO HAS BEGUN INVESTIGATING REPORTS OF IGNITIONKEY CYLINDERS DROPPING OUT OF THE STEERING COLUMNS OF 1991 FORD ESCORTS CAUSING THE STEERING TO LOCK UP THERE ARE 383000 OF THE 1991 MODELS MADE BY FORD MOTOR CO ON THE ROAD THE AGENCY IS ALSO TRYING TO DETERMINE WHETHER THIS PROBLEM IS SERIOUS ENOUGH TO JUSTIFY A NATIONWIDE RECALL AT THIS POINT SAFETY OFFICIALS ARE PARTICULARLY CONCERNED ABOUT THE GEO METRO CASE THEY KNOW OF ONE ACCIDENT INVOLVING A HOOD THAT TORE OFF AND SMASHED THE WINDSHIELD OF A CAR FOLLOWING BEHIND INJURING THE DRIVER WHAT'S MORE GM ALREADY HAS HAD TO DO WARRANTY WORK ON THE HOODS OF 1400 GEO METROS ON THE FORD ESCORT CASE THE NHTSA HAS RECEIVED 11 COMPLAINTS FROM '91 ESCORT OWNERS SO FAR INCLUDING THREE WHO HAD THEIR STEERING LOCK UP WHILE DRIVING THERE HAVE BEEN NO REPORTS OF INJURIES OR FATALITIES THE AGENCY BEGAN LOOKING INTO THE METRO AND ESCORT CASES LATE LAST YEAR ACCORDING TO THE SPOKESMAN ON THE BASIS OF PRELIMINARY FINDINGS IT DECIDED YESTERDAY TO UPGRADE THE INQUIRIES INTO ENGINEERING ANALYSES WHICH COULD LEAD TO RECALLS WE'RE COOPERATING WITH NHTSA WITH THEIR INQUIRY A GM SPOKESMAN SAID 9303230014 930323 LEISURE & ARTS THE MOBILE GUIDE WANDERING AN INDONESIAN ISLE BY KAREN SWENSON BADA VALLEY SULAWESI TO KEEP MY MIND OFF MY STOMACH WHICH AS WE TILTED AT AN ODD ANGLE TOWARD THE EARTH FELT AS THOUGH IT WAS TRYING TO RAM ITS WAY THROUGH MY BODY AND RETURN HOME I ASKED THE REDBEARDED PILOT NEXT TO ME HOW HE HAD COME TO BE AIRLIFTING PEOPLE AND BAGGAGE TO SOME OF THE LESSERKNOWN AREAS OF THE INDONESIAN ISLAND OF SULAWESI WELL HE SAID IN VOWELS UNMISTAKABLY MIDDLE AMERICAN EVEN WHEN I WAS IN ELEMENTARY SCHOOL I KNEW I WANTED TO SERVE THE LORD BUT I WAS MECHANICALMINDED I DROPPED THE CONVERSATION IN FAVOR OF THE VIEW WE HAD LIFTED ABOVE LAKE POSO TRANSPARENT AQUAMARINE AT ITS EDGES DEEP SAPPHIRE AT ITS CENTER AS FAR AS THE EYE COULD SEE AHEAD OF US WAS JUNGLE A BROCCOLIHEADED QUILT IN VARIOUS SHADES OF GREEN SWATCHED BY PINK OR PURPLE WHERE A TREE BLOOMED 6000 FEET BELOW THE EXHILARATION OF LOOKING OUT AND SEEING NOTHING HUMAN FOR ALL THOSE MILES IS A RELATIVE OF KEATS'S WILD SURMISE IT IS HOWEVER EXHILARATING ONLY IF AS GRAHAM GREENE SAID OF TRAVELING IN DANGEROUS PLACES I HAVE MY RETURN TICKET SECURELY IN MY POCKET WE HAD TAKEN OFF FROM A LUMPY GREEN SWATH OF RUNWAY NEAR LAKE POSO IN THE TOWN OF TENTENA WHOSE ASSETS ARE A LONG COVERED BRIDGE FROM WHOSE WINDOWS YOU CAN SEE THE RICKRACK FORMATION OF EEL TRAPS AND THE LEMBA RESTAURANT RUN BY A MAN WHOSE SISTER MAKES WONDERFUL IKAN MAS GOLD FISH IN HOT CURRY HE HAD ARRANGED MY TRIP TO THE BADA VALLEY WALKED ME TO THE AIRPORT A SMALL HUT AT THE EDGE OF THE RUNWAY AND INTRODUCED ME TO ONE OF MY FELLOW PASSENGERS ESLOM WHO WAS TO PUT ME IN TOUCH WITH MY GUIDE MR HENDRICKS IN THE HUT AS IN ANY OTHER AIRPORT IN THE WORLD THERE WERE FEW DIVERSIONS EVERYONE AND HIS OR HER BAGGAGE WAS WEIGHED WE HAD A MOMENT'S EXCITEMENT WHEN FRIENDS OF A PASSENGER BACKED THEIR CAR INTO A WOODEN ELECTRIC POLE AND WE ALL RUSHED OUT TO RIGHT IT OTHERWISE THERE WAS NOTHING TO DO EXCEPT STARE AT ME AN ENTERPRISE EVERYONE ENTERED INTO WITH A WILL I READ UNTIL WE HEARD THE HUM OF THE SINGLEPROPELLER PLANE IT LANDED WITH A SERIES OF BOUNCES LIKE A BABY GRASSHOPPER NOT LONG AFTER WE LEVELED OFF THE BADA VALLEY OPENED BELOW A TROUGH WITHOUT JUNGLE SPANGLED WITH VILLAGES AND CHURCH SPIRES WE CAME DOWN INTO A NEAT IF LUMPY LANDING ON ESLOM'S MOTORBIKE WHICH A FRIEND HAD BROUGHT FOR HIM WE DROVE OVER POTHOLED DIRT RUTS BETWEEN BAMBOOFENCED HOUSES SOME MODERN NEAT CONCRETE BOXES PAINTED IN PASTEL HUES OTHERS CONSTRUCTED OF BAMBOO POLES WITH WOVEN BAMBOO WALLS AND FLOORS AND ONE UP ON STILTS WITH THE SWAYBACKED ROOF OF THE HOUSES IN THE TORAJA AREA OF SULAWESI WITH A CARVED BULL'S HEAD BELOW THE GABLE ALL WERE TIDY AS PINS WITH GARDENS IN FRONT AND VEGETABLE PLOTS ON THE SIDES FROM TIME TO TIME WE WOULD STOP WHEN WE SAW PEOPLE IN THE ROAD ESLOM WOULD SAY THAT THIS WAS HIS SISTER OR UNCLE AND WE WOULD SHAKE HANDS SOLEMNLY ALTHOUGH HIS RELATIVES SEEMED TO FIND IT EMBARRASSING MANY OF THE WOMEN STANDING IN FRONT OF THEIR HOUSES WORE TWOTIERED RUFFLED BLACK SKIRTS VERY FULL BULKY AND NOT UNLIKE THE EUROPEAN SKIRTS OF THE 1890S THEY ALSO WORE HEADBANDS IN BRIGHT COLORS TIED AROUND THEIR FOREHEADS WE MET MR HENDRICKS ALONG THE ROAD AND TO MY DISMAY HE SAID HE WAS STRANDING ME TO GO TO THE NEARBY TOWN OF PADA FOR TWO DAYS ESLOM DELIVERED ME TO A SMALL CONCRETE HOUSE WHOSE PARLOR FLOOR WAS COVERED WITH THE PLASTIC SHEETING USED TO COVER RESTAURANT TABLES IN THE TOWNS I WENT OUT TO WATCH THE CHILDREN ROMPING IN THE TWILIGHT SINCE PALE REDHEADED CREATURES IN INDONESIA ARE LIKELY TO BE EITHER GHOSTS OR DEMONS THE CHILDREN KEPT A CIRCUMSPECT DISTANCE FROM ME BUT TWO BOYS MORE DARING THAN THEIR COMRADES GALLOPED BY ON STICK HORSES WHICH I CHANGED MAGICALLY AS A DEMON SHOULD INTO MOTORCYCLES BY MAKING THE APPROPRIATE NOISES THE ROAD WANDERED AWAY IN A DUSTY TRACK PUNCTUATED BY COVERED BRIDGES OVER CREEKS AND I WANDERED WITH IT FOLLOWED BY CHILDREN ON STICK MOTORCYCLES AND ON BAMBOO STILTS I WOULD TURN SUDDENLY AND PRETEND TO GRAB ONE WHICH WOULD CAUSE A STAMPEDE TO THE REAR AMID SHRIEKING AND GIGGLING WHEN I RETURNED TO MY CONCRETE BOX LIN MY HOSTESS WAS FIXING DINNER SO I ENTERTAINED HER CHILDREN MARY NINING AND ANTON WITH POSTCARDS AND CONVERSATION IN MY RUDIMENTARY INDONESIAN WE WERE WATCHED OVER BY A SORT OF BREAKFRONT LADEN WITH PLASTIC OBJECTS FLOWERS A ROARING LION THREE DEER THREE SIAMESE CATS AND A CRUCIFIXION DONE IN SHELLS ANTON THE ELDEST FEELING THAT HE SHOULD RESPOND TO MY POSTCARDS BROUGHT ME A LITTLE BOOK OF PHOTOGRAPHS THEY WERE PICTURES OF A CHILD'S FUNERAL A BOY OF ANTON'S AGE DRESSED IN HIS BEST PERHAPS HIS FIRSTCOMMUNION SUIT WITH A FLOWER IN HIS BUTTON HOLE HE WAS LAID OUT IN A SATINLINED COFFIN THERE WERE PICTURES OF THE MOURNERS OF THE CLOSING OF THE COFFIN OF THE GRAVE SINCE MY INDONESIAN WAS NOT UP TO THIS CHALLENGE I LOOKED LONG AND SOLEMNLY AT THE PHOTOS IN THE MORNING I WAS TAKEN TO THE DISTRICT OFFICE WHERE I SIGNED A BOOK SHOOK HANDS ALL AROUND AND WAS ASSIGNED A SLIM YOUNG MAN NAMED MASRI HE WALKED ME TO BEWA WHERE AT THE CROSSROADS I SAW THE FIRST OF THE BADA VALLEY MEGALITHS WHICH LOOKED AS THOUGH IT HAD SUNK IN QUICKSAND SO ONLY THREE OR FOUR FEET OF IT WERE VISIBLE ITS HEAD WITH GREAT ROUND EYES STARED DOWN THE ROAD TALKING PARTLY IN INDONESIAN AND PARTLY IN ENGLISH WE WALKED DOWN A BURRANDTHORN EDGED PATH TO THE RIVER BOARDED A NARROW BAMBOO RAFT POLED BY TWO YOUNG BOYS AND THEN CLIMBED AN ESCARPMENT TO A PLATEAU ABOVE THE RIVER HERE AMONG WEEDS AND SCRUB WAS WATUPALINDO A LARGE MEGALITH SEVEN TO EIGHT FEET HIGH HE HAD AN UPRIGHT PENIS A BROAD NOSE AND THE SAME LARGE ROUND EYES AS THE ONE AT THE CROSSROADS IN BEWA WHICH GAVE HIM A CHILDLIKE INNOCENT LOOK THE STATUES WERE INCISED INTO THE STONE RATHER THAN CARVED IN THE ROUND LIKE THE RUNES CARVED INTO BOULDERS IN DENMARK THERE WERE ALSO GRAY STONE BASINS THEY APPEARED TO BE UNCONNECTED WITH THE PEOPLE WHO LIVE THERE NOW AND NO ONE KNEW WHO MADE THEM ON THE WAY BACK MASRI ASKED IF I WANTED TO SEE A WOMAN WITH A BEARD HIS MOTHER I THOUGHT MY INDONESIAN HAD FAILED ME IN SOME ECCENTRIC WAY BUT SAID I WOULD BE PLEASED TO MEET HIS MOTHER MASRI'S PARLOR CONTAINED A LARGE PICTURE OF CHRIST IN A CROWN OF THORNS ALTHOUGH HE CLAIMED HE WAS A MUSLIM I WAS ENVISIONING A GOATEE WISPY AT THE MOST BUT HIS ELDERLY MOTHER HAD A HEAVY VSHAPED MAT OF GRAY AND BLACK HAIR ON HER CHIN WE SHARED A CUP OF COFFEE AND MY POSTCARDS OF NEW YORK BEFORE I TOOK PICTURES OF HER AND MASRI PROMISING TO SEND COPIES THE NEXT DAY I FILLED UP MY CANTEEN FROM LIN'S KETTLE AND STARTED OFF ON MY OWN ON THE DIRT ROAD AS I PASSED THROUGH EACH TOWN WITH ITS NEAT HOUSES AND A CHURCH USUALLY WITH A CROWING COCK CUT FROM METAL ON THE TOP OF THE STEEPLE I WOULD COLLECT A CROWD OF CHILDREN WHO AS THE HOUSES PETERED OUT WOULD ABANDON ME I WOULD THEN ACQUIRE A NEW BATCH OF CHILDREN AT THE NEXT TOWN THE BOYS WERE DRESSED IN STURDY SENSIBLE CLOTHES BUT THE GIRLS WERE ALL IN PARTY DRESSES WITH TULLE OVERSKIRTS AND RIBBONS THAT HAD DISINTEGRATED INTO TATTERS IN BAKEKOW I ASKED MY TAIL OF CHILDREN WHICH WAY TO THE PATUNG THE STATUE THEY GAILY LED ME THROUGH SOMEONE'S BACKYARD PAST A PIG STY OVER A BAMBOO BRIDGE AND THROUGH WEEDS TO THE RIVER BUT THERE WAS NO RAFT WE WERE ALL DISAPPOINTED ONE LITTLE GIRL IN A SILKY BLUE DRESS SWISSCHEESED WITH HOLES WHO WAS CARRYING HER BROTHER ON HER BACK ASKED IF I WOULD LIKE TO SEE THE PATUNA DI KERBOW SAWA THE STATUE OF THE PADDY BUFFALO AND OFF WE WENT INTO THE FIELDS WALKING ON DIKES ABOVE THE PADDIES OVER BAMBOOPOLE BRIDGES PEOPLE WORKING IN THE FIELDS CALLED TO THE CHILDREN DRAGONFLIES WITH REDVELVET WINGS HOVERED OVER THE JEWELGREEN STALKS OF RICE WE WERE A LONG CROCODILE WEAVING AMONG THE FIELDS IN FRONT OF A SMALL BAMBOO REST HOUSE WE CAME TO A STONE SHAPED LIKE A RECLINING BUFFALO HE HAD THE FACE OF THE OTHER MEGALITHS THE ROUND SURPRISED EYES LIGHTLY ETCHED INTO THE STONE THE NEXT MORNING I ROSE AT 6 SLUNG ON MY PACK AND SCURRIED DOWN THE ROAD TO THE AIRFIELD TO CATCH THE PLANE PILOTED BY THE YOUNG MAN WHO SERVES HIS LORD IN THE WILD BLUE YONDER MS SWENSON IS A POET IN BROOKLYN NY WHO TRAVELS FREQUENTLY THROUGHOUT ASIA 9303230013 930323 SELFREGULATION OF SECURITIES FIELD GAINS TOUGHER BITE BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BROKERAGE INDUSTRY'S SELFREGULATORY GROUPS ONCE CONSIDERED TAME ARE BARING MORE TEETH SO SUGGESTS A STUDY BY THE AMERICAN BAR ASSOCIATION THAT ANALYZED THE 1992 DISCIPLINARY ACTIONS BY FIVE SELFREGULATORY ORGANIZATIONS THAT POLICE THE SECURITIES INDUSTRY THE FIVE SOCALLED SROS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE NEW YORK STOCK EXCHANGE THE CHICAGO BOARD OPTIONS EXCHANGE THE AMERICAN STOCK EXCHANGE AND THE MIDWEST STOCK EXCHANGE BROUGHT 1374 DISCIPLINARY CASES AGAINST BROKERAGE FIRMS AND EMPLOYEES IN 1992 THE STUDY SAID THAT'S A TAD LESS THAN THE 1409 CASES BROUGHT IN 1991 BUT THE FINES LEVIED BY SROS JUMPED 27 TOTALING 47 MILLION IN 1991 COMPARED WITH 37 MILLION A YEAR EARLIER AMONG THEM A RECORD 25 MILLION BY THE BIG BOARD AGAINST COLLAPSED DREXEL BURNHAM LAMBERT INC AND 17 MILLION BY THE NASD AGAINST MONARCH FUNDING CORP IN THE PROCESS SROS ARE APPEARING TO SHED THEIR REPUTATIONS AS TEPID REGULATORS ANYBODY WHO THINKS THAT THE SROS ARE TOOTHLESS TIGERS IS MISINFORMED SAYS ANNE C FLANNERY A NEW YORK LAWYER AND CHAIRWOMAN OF THE ABA'S LITIGATION SECTION SUBCOMMITTEE ON SRO MATTERS WHICH CONDUCTED THE STUDY THE NASD HAD THE LARGEST NUMBER OF CASES OF THE MAJOR SROS RECORDING 705 DISCIPLINARY ACTIONS IN 1992 WITH FINES OF 414 MILLION AN INCREASING NUMBER OF CASES ORDERED THAT RESPONDENTS ALSO REIMBURSE OR OTHERWISE COMPENSATE CUSTOMERS THE STUDY SAID THE BIG BOARD ANNOUNCED 165 DISCIPLINARY CASES IN 1992 ASSESSING A TOTAL OF 4 MILLION IN FINES THE STUDY SAID THE CBOE BROUGHT 165 DISCIPLINARY CASES IN 1992 FOR ABOUT 922000 IN FINES COMPARED WITH 127 CASES AND ROUGHLY 603000 IN FINES IN 1991 THE AMERICAN STOCK EXCHANGE BROUGHT 43 CASES IN 1992 A 30 JUMP FROM THE 33 CASES FILED IN 1991 WITH A BIG JUMP IN FINES THE AMEX'S STIFFEST FINE IN 1992 WAS 200000 NEARLY 10 TIMES THE 1991 HIGH OF ABOUT 25000 THE LEAST ACTIVE SRO IN THE STUDY WAS THE TINY MIDWEST STOCK EXCHANGE THE MSE BROUGHT JUST SIX CASES IN 1992 THE SAME AS IN 1991 SANCTIONS FOR THESE VIOLATIONS WERE IN THE 75008000 RANGE THE STUDY SAID 9303230012 930323 WHO'S NEWS ARCO PROMOTES MIKE BOWLIN TO PRESIDENT BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES ATLANTIC RICHFIELD CO NAMED MIKE R BOWLIN PRESIDENT AND CHIEF OPERATING OFFICER APPARENTLY PUTTING HIM IN LINE TO SUCCEED LODWRICK COOK WHEN HE RETIRES AS CHIEF EXECUTIVE OFFICER IN TWO YEARS MR BOWLIN 50 YEARS OLD HEADED UP ARCO'S INTERNATIONAL OPERATIONS BEFORE HE WAS HANDED ADDITIONAL DUTIES AND ELEVATED TO THE POSTS OF EXECUTIVE VICE PRESIDENT AND DIRECTOR LAST JUNE IN HIS NEW ASSIGNMENT HE SUCCEEDS ROBERT E WYCOFF 62 WHO IS RETIRING AFTER A 40YEAR CAREER WITH THE GIANT OIL COMPANY MR WYCOFF WILL ASSUME THE HONORARY TITLE OF PRESIDENT EMERITUS AND REMAIN CHAIRMAN OF LYONDELL PETROCHEMICAL CO A HOUSTON COMPANY IN WHICH ARCO HAS A LARGE MINORITY HOLDING ARCO SAID THE RETIREMENTS ALL EFFECTIVE JUNE 1 ARE PART OF A MANAGEMENT SUCCESSION PLAN THAT THE COMPANY HAS BEEN DEVELOPING IN RECENT YEARS MR COOK WHO TURNS 65 IN JUNE AGREED LAST YEAR TO STAY UNTIL JUNE 1995 TWO YEARS PAST ARCO'S MANDATORY RETIREMENT AGE OF 65 DESPITE MR BOWLIN'S PROMOTION LAST YEAR HOWEVER ANALYSTS SAID IT WAS FAR FROM CERTAIN AT THE TIME THAT HE WOULD BECOME MR COOK'S HEIR APPARENT MR WYCOFF MR MORRISON EXECUTIVE VICE PRESIDENT JAMES A MIDDLETON 57 AND ESPECIALLY RONALD J ARNAULT 49 EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WERE ALSO VIEWED AS CONTENDERS ANALYSTS CHEERED ARCO'S DECISION TO PROMOTE MR BOWLIN AND OTHER RELATIVELY YOUNG EXECUTIVES THUS APPARENTLY REJECTING THE OPTION OF A SHORTTERM CARETAKER MANAGEMENT OF OLDER EXECUTIVES AFTER MR COOK RETIRES MR BOWLIN'S RISE ALSO REFLECTS THE GROWING IMPORTANCE OF INTERNATIONAL OIL AND GAS OPERATIONS TO ARCO ANALYSTS SAID BERNARD PICCHI AN ANALYST AT KIDDER PEABODY & CO SAID I THOUGHT WYCOFF MIGHT HAVE GONE INTO THE CHIEF EXECUTIVE POSITION FOR A YEAR OR TWO AND BE SUCCEEDED BY A YOUNGER GENERATION THAT WOULD HAVE CREATED A CONDITION THAT WOULD HAVE LENT ITSELF TO POSSIBLY A PERIOD OF CRIPPLING PALACE INTRIGUE AS WOULDBE SUCCESSORS JOSTLED FOR POSITION HE SAID ARCO REACHED INTO THE RANKS OF ITS YOUNGER EXECUTIVES FOR OTHER PROMOTIONS AS WELL WILLIAM E WADE JR 50 A SENIOR VICE PRESIDENT SUCCEEDS MR BOWLIN AS EXECUTIVE VICE PRESIDENT OVERSEEING ARCO'S INTERNATIONAL AND DOMESTIC OIL AND GAS OPERATIONS AND THE COMPANY'S COAL AND ALUMINUM BUSINESSES MICHAEL E WILEY 42 WAS ELECTED SENIOR VICE PRESIDENT OF ARCO AND PRESIDENT OF ITS ARCO OIL & GAS CO UNIT SUCCEEDING MR WADE MR WILEY HAS BEEN VICE PRESIDENT OF THE ARCO EXPLORATION & PRODUCTION TECHNOLOGY UNIT WILLIAM C RUSNACK 48 SUCCEEDS MR BABIKIAN AS PRESIDENT OF ARCO PRODUCTS CO MR RUSNACK HAS BEEN A SENIOR VICE PRESIDENT AND PRESIDENT OF THE ARCO TRANSPORTATION CO UNIT MARIE L KNOWLES 46 WAS ELECTED SENIOR VICE PRESIDENT AND PRESIDENT OF THE ARCO TRANSPORTATION CO UNIT BECOMING THE FIRST WOMAN TO HEAD ONE OF THE OIL COMPANY'S OPERATING UNITS SHE IS CURRENTLY CONTROLLER AND A CORPORATE VICE PRESIDENT OTHER PROMOTIONS INCLUDED ALLAN L COMSTOCK 49 TO VICE PRESIDENT AND CONTROLLER SUCCEEDING MS KNOWLES JOHN H KELLY 38 TO VICE PRESIDENT OF HUMAN RESOURCES SUCCEEDING MR MURRAY AND JAMES K KEN THOMPSON 41 TO VICE PRESIDENT OF ARCO EXPLORATION & PRODUCTION TECHNOLOGY SUCCEEDING MR WILEY 9303230010 930323 BUSINESS BRIEF NYNEX CORP TELECOMMUNICATIONS FIRM BUYS 3 UK CABLE CONCERNS NYNEX CORP SAID IT BOUGHT THREE BRITISH CABLE TELEVISION COMPANIES FROM PACIFIC TELESIS GROUP INCREASING NYNEX'S CABLE HOLDINGS IN BRITAIN TO 14 TERMS WEREN'T DISCLOSED NYNEX A TELECOMMUNICATIONS CONCERN BASED IN WHITE PLAINS NY SAID IT PLANS TO UPGRADE THE SYSTEMS WHICH CURRENTLY HAVE ABOUT 8600 CABLE TV CUSTOMERS TO CARRY TELEPHONE CALLS THE NEW FRANCHISES IN GREATER MANCHESTER BOLTON AND DERBY ARE IN THE SAME REGION AS FRANCHISES NYNEX ALREADY OWNS TOGETHER NYNEX'S UK CABLE FRANCHISES COULD REACH AS MANY AS TWO MILLION HOMES AND BUSINESSES BEFORE THE ACQUISITION NYNEX HAD ABOUT 20000 UK CUSTOMERS ABOUT 75 OF WHOM BUY BOTH CABLE TV AND TELEPHONE SERVICE A NYNEX SPOKESWOMAN SAID NYNEX BEGAN ITS CABLE AND TELEPHONE SERVICE IN THE UK IN 1991 AND HAS BEEN BUILDING FIBEROPTICBASED NETWORKS THAT ARE ABLE TO CARRY VOICE DATA AND VIDEO SIGNALS 9303230009 930323 POLITICS & POLICY PRESIDENT TO HOLD TODAY FORMAL NEWS CONFERENCE WASHINGTON PRESIDENT CLINTON PLANS TO HOLD HIS FIRST FREESTANDING NEWS CONFERENCE TODAY AT 1 PM EST THE PRESIDENT HAS TAKEN QUESTIONS FROM REPORTERS DURING HIS TWO MONTHS IN OFFICE BUT TODAY'S ENCOUNTER WILL BE THE FIRST FORMAL NEWS CONFERENCE THAT ISN'T TIED TO ANY OTHER ANNOUNCEMENT OR EVENT THE SESSION WILL BE HELD IN THE WHITE HOUSE'S EAST ROOM A PRESIDENTIAL SPOKESWOMAN SAID MR CLINTON DOESN'T PLAN TO MAKE ANY SPECIAL ANNOUNCEMENTS AT THE NEWS CONFERENCE 9303230008 930323 LEISURE & ARTS TOP TEN SINGLES / ALBUMS CONSTRUCTED BY BILLBOARD MAGAZINE FROM DATA PROVIDED BY BROADCAST DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9303230007 930323 INTERNATIONAL TAIWAN REVIEWS ITS MODERNIZATION PLAN THREATENING SOME BIGTICKET PROJECTS BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN A 300 BILLION GOVERNMENT BLUEPRINT FOR TAIWAN'S MODERNIZATION OVER SIX YEARS IS A BONANZA OF PUBLIC SPENDING THAT HAS PUT THE CAPITALRICH ASIAN ISLAND ON THE MAP SINCE THE SPENDING PROGRAM WAS INAUGURATED THREE YEARS AGO DOZENS OF RANKING MINISTERS FROM COUNTRIES THAT LONG IGNORED TAIWAN HAVE BEATEN A PATH TO ITS DOOR HOPING TO WIN LUCRATIVE CONTRACTS FOR THEIR NATIONS' COMPANIES AND CONTRACTS THERE ARE IN PROFUSION A 17 BILLION HIGHSPEED RAILROAD A 58 BILLION NUCLEARPOWER PLANT MASSTRANSIT SYSTEMS WASTEDISPOSAL TECHNOLOGY AND HUNDREDS OF MILES OF HIGHWAYS AMONG OTHER PROJECTS MUCH OF IT WILL BE BUILT SOMEDAY BUT THE GOVERNMENT THAT TOOK OFFICE LAST MONTH HAS ANNOUNCED A FOURMONTH TOPTOBOTTOM REVIEW OF THE SIX YEAR PLAN FACED WITH SHORTAGES OF FINANCING MANPOWER AND MATERIALS THE GOVERNMENT OF PREMIER LIEN CHAN IS PREPARING THE BUDGET AX WHILE A LARGE PART OF THE PLAN IS UNDER WAY ALREADY LOCAL NEWSPAPERS ARE FULL OF RUMORS THAT PROJECTS WILL BE CANCELED OR POSTPONED NEW APPROACHES TO FINANCING ARE BEING PROMOTED SUCH AS BUILDOPERATETRANSFER SCHEMES FOR HIGHWAYS THIS NEW CABINET WANTS TO MAKE THE SIX YEAR PLAN MORE SMOOTH AND MORE PRACTICAL MORE PRAGMATIC SAYS THE GOVERNMENT'S NEW PLANNING CZAR VINCENT SIEW IT HAS TO BE MORE ACCEPTABLE TO THE GENERAL PUBLIC FROM THE MOMENT THE PLAN WAS ANNOUNCED IN LATE 1990 BY THENPREMIER HAU PEITSUN FEW PEOPLE IN TAIWAN IMAGINED THAT ITS VAST VISION COULD BE ACHIEVED BY 1996 OR EVEN THE YEAR 2000 THE PLAN IS JUST A JOKE SAYS SCHIVE CHI CHAIRMAN OF THE ECONOMICS DEPARTMENT AT NATIONAL TAIWAN UNIVERSITY THE ISSUE IS SO SIMPLE THE GOVERNMENT WILL GO BANKRUPT IF IT IS SERIOUS ABOUT THIS THE REAPPRAISAL COULD PLACE SEVERAL BIGTICKET PROJECTS IN LIMBO AND THAT IS OF PRIMARY CONCERN TO MANY FOREIGN GOVERNMENTS AND COMPANIES THE FRENCH FOR EXAMPLE HAVE DEVOTED CONSIDERABLE RESOURCES TO PROMOTING THEIR HIGHSPEED RAILROAD TECHNOLOGY IN TAIWAN INDEED FRANCE'S DECISION LAST YEAR TO SELL THE ISLAND 60 ADVANCED MIRAGE FIGHTER JETS IS WIDELY REGARDED AS A BID TO GET THE INSIDE TRACK ON A HIGHSPEED RAIL CONTRACT FOR A FRENCHGERMAN CONSORTIUM THE NEW MINISTER OF TRANSPORTATION AND COMMUNICATIONS LIU CHAOSHIUAN SAID LAST WEEK THE PROJECT LIKELY WILL BE DELAYED LIKEWISE THE US GOVERNMENT IS WATCHING FOR SIGNS THAT TAIWAN WILL BUILD A PLANNED FOURTH NUCLEARPOWER PLANT IMPORTANT CONTRACTS ON THE FACILITY WERE SUPPOSED TO BE AWARDED THIS YEAR FOR NOW GOVERNMENT OFFICIALS ARE TRYING TO EASE FOREIGNERS' CONCERNS THEY DENY LOCAL REPORTS THAT ONETHIRD OF THE SIX YEAR PLAN WILL BE ELIMINATED THERE WILL BE PLENTY OF OPPORTUNITIES FOR FOREIGN PARTICIPATION REGARDLESS OF THE REVIEW THEY SAY WE AREN'T REDUCING OPPORTUNITIES FOR INVESTORS OR FOREIGNERS SAYS VICE ECONOMICS MINISTER YANG SHIHCHIEN PROBABLY WE SHOULD SAY THERE WILL BE MORE OPPORTUNITIES FOR FOREIGN INVESTORS BECAUSE WE ARE OPENING A LOT OF PRIVATESECTOR PARTICIPATION THE MIDCOURSE CORRECTION BOILS DOWN TO DEFINING TAIWAN'S PRIORITIES A PROCESS THAT SENIOR OFFICIALS POINT OUT WASN'T DONE BY PREMIER HAU'S GOVERNMENT MANY PROJECTS DID NOT GO THROUGH A RIGOROUS REVIEWING PROCESS SAYS VICE MINISTER YANG THAT IS THE PURPOSE OF THE REVIEW SPENDING BREAKDOWN OF TAIWAN'S 300 BILLION SIX YEAR PLAN IN PERCENT 9303230006 930323 HEALTH FRUSTRATED FIRMS OPEN THEIR OWN CLINICS TO TRY TO CONTROL WORKERS' MEDICAL COSTS BY ROBERT TOMSHO AND DANA MILBANK STAFF REPORTERS OF THE WALL STREET JOURNAL CURT BRENNER'S CHECKUPS FOR EMPHYSEMA AND HIGH BLOOD PRESSURE USED TO MEAN LOST WORK TIME LONG WAITS AT HIS DOCTOR'S OFFICE AND A MAZE OF INSURANCE DEDUCTIBLES AND COPAYMENTS THAT CHANGED WHEN THE 62YEAROLD PRESS MANAGER'S EMPLOYER QUAD/GRAPHICS INC OF PEWAUKEE WIS OPENED ITS OWN CLINIC TWO YEARS AGO NOW MR BRENNER GETS FREE BIMONTHLY CHECKUPS AT WORK RARELY HAS TO WAIT MORE THAN FIVE MINUTES AND HAS THE NEW COMPANY PHARMACY DELIVER PRESCRIPTIONS TO HIM AT HIS PLANT YOU CAN'T BEAT IT HE MARVELS STRUGGLING TO GAIN A TIGHTER GRIP ON RISING HEALTHCARE COSTS MORE LARGE EMPLOYERS ARE OPENING THEIR OWN PRIMARYCARE CLINICS FOR EMPLOYEES DEPENDENTS AND RETIREES IT IS A TREND BORN LARGELY OF FRUSTRATION DESPITE OUR INVOLVEMENT IN TRADITIONAL MANAGED CARE OUR COSTS CONTINUED TO ESCALATE SAYS FRANK PROVATO CORPORATE MEDICAL DIRECTOR FOR GTE CORP WHICH PLANS TO OPEN A HEALTHCARE CENTER FOR EMPLOYEES IN THE TAMPA FLA AREA WE'RE ELIMINATING THE MIDDLEMEN INHOUSE CLINICS AREN'T NECESSARILY PANACEAS THEY ARE EXPENSIVE TO OPEN AND SOME QUESTION WHETHER THEY PRODUCE THE DESIRED SAVINGS HEALTHCARE CONSULTANTS AND CORPORATE MEDICAL EXECUTIVES FIGURE THAT AT LEAST 3000 TO 5000 COVERED INDIVIDUALS ARE NECESSARY TO JUSTIFY OPENING ONE AND EVEN THEN SUCH CLINICS MAY NOT MAKE SENSE FOR COMPANIES THAT AREN'T ALREADY FACING SUBSTANTIAL HEALTHCARE LIABILITIES SUCH AS THOSE STIPULATED BY UNION CONTRACT IN DAYTON OHIO SMALLER EMPLOYERS' EFFORTS TO PATCH TOGETHER A JOINT OPERATION RAN AGROUND OVER SUCH BASIC ISSUES AS WHERE TO LOCATE THE FACILITY THE THING GOT SO COMPLEX THAT IT DIED UNDER IT'S OWN WEIGHT SAYS TOM MOMCHILOV AN EXECUTIVE WITH REYNOLDS & REYNOLDS CO STILL MANY LARGE CORPORATIONS ARE WILLING TO GAMBLE THAT THE CLINICS WILL RESULT IN LONGTERM SAVINGS BECAUSE EVERYTHING ELSE THEY HAVE TRIED DOESN'T WORK SAYS BOB ATLAS A MANAGEDCARE CONSULTANT WITH LEWINVHI INC A CONSULTING FIRM GILLETTE CO'S SOUTH BOSTON CLINIC HANDLED MORE THAN 20000 PATIENT VISITS LAST YEAR GOODYEAR TIRE & RUBBER CO OPERATES FOUR CLINICPHARMACIES AND ADOLPH COORS CO OFFERS PLANTWIDE SHUTTLE SERVICE TO ITS NEW GOLDEN COLO FACILITY DEERE & CO HAS HIRED THE MAYO CLINIC TO OPERATE TWO FACILITIES AND USX CORP IS SET TO OPEN A 12000SQUAREFOOT CLINIC WITH 16 EXAM ROOMS OUTSIDE ITS US STEEL UNIT'S GARY WORKS IN INDIANA THE NEW GENERATION OF INHOUSE CLINICS GOES FAR BEYOND THE OCCUPATIONAL HEALTH CLINICS THAT SOME COMPANIES ALREADY HAVE FOR HANDLING WORKRELATED INJURIES STAFFED BY PHYSICIANS AND NURSES WHO ARE USUALLY FULLTIME EMPLOYEES OF THE COMPANY OR THE CLINICMANAGEMENT CONCERN IT HIRES MANY HAVE XRAY FACILITIES LABORATORIES AND OPERATING FACILITIES FOR SIMPLE OUTPATIENT SURGERY COORS OFFERS MAMMOGRAMS AND BASIC DENTAL CARE GOODYEAR GIVES SEMINARS ON CHOLESTEROL MANAGEMENT AND SMOKING CESSATION AND A FORMER LUMBERYARD BEING REMODELED BY GEORGIABASED SOUTHWIRE CO WILL INCLUDE A WEIGHT ROOM A BASKETBALL COURT AND AN AEROBICS CENTER THEY DID AN AWFUL GOOD JOB FOR ME SAYS GILLETTE RETIREE EDWIN KASABUSKI OF BOSTON WHO CREDITS THAT COMPANY'S DOCTORS WITH DIAGNOSING HIS PROSTATE CANCER AND MAKING SURE THAT HE GOT AN APPOINTMENT WITH AN OUTSIDE SPECIALIST WHO SUCCESSFULLY TREATED IT BEFORE THE SPREAD OF GROUP INSURANCE PLANS AND THE GROWTH OF UNIONS IN THE 1930S AND 1940S MANY MANUFACTURERS AND MINING CONCERNS HAD COMPANY CLINICS ALL TOO OFTEN THOUGH THEY WERE THE ONLY EMPLOYERPAID MEDICAL CARE AVAILABLE AND MANY EXISTED MAINLY TO PATCH UP EMPLOYEES AND GET THEM BACK TO WORK CONFIDENTIALITY WAS A BIG CONCERN FOR EMPLOYEES WHO USED THEM AND MODERN CLINICS ARE STILL GRAPPLING WITH THAT REPUTATION THE BIGGEST FEAR WE'LL HAVE TO DEAL WITH IS TO CONVINCE PEOPLE THAT THEIR RECORDS WILL BE CONFIDENTIAL SAYS GARY NELSON AN ELECTRICAL WORKERS OFFICIAL INVOLVED IN PLANNING GTE'S TAMPA FACILITY BUT WITH MAJOR EMPLOYERS CONTINUING TO LAY OFF EMPLOYEES AND WAGEANDBENEFIT PACKAGES UNDER PRESSURE LABOR UNIONS HAVE GENERALLY SUPPORTED THE DEVELOPMENT OF SUCH FACILITIES IN RECENT YEARS IT'S AN INTERESTING CONCEPT AND THESE TIMES CALL FOR INTERESTING CONCEPTS SAYS CLAUDIA BRADBURY A HEALTHCARE SPECIALIST FOR THE AFLCIO ADDING THAT THE FEAR OF LITIGATION IS LIKELY TO DETER CORPORATIONS FROM CUTTING CORNERS OR BREACHING CONFIDENTIALITY MEANWHILE THE COMPANIES HAVE TAKEN STEPS TO FOSTER EMPLOYEE CONFIDENCE SINCE THEY WILL SAVE MONEY ONLY IF EMPLOYEES USE THE CLINICS INSTEAD OF MORE EXPENSIVE OUTSIDE DOCTORS MANY HIRE COMPANIES TO STAFF AND OPERATE THEIR CLINICS FOR A SET FEE OTHERS HAVE CREATED SEPARATE COMPUTER SYSTEMS TO MANAGE RECORDS FORBIDDING CLINIC EMPLOYEES TO DISCUSS CASES OR EVEN REVEAL WHETHER AN EMPLOYEE HAS AN APPOINTMENT I'D FIRE ANYONE THAT DID IT IT'S THAT SIMPLE SAYS WILLIAM GREER GILLETTE'S MEDICAL DIRECTOR SOME COMPANIES HAVE ALSO FORMED EMPLOYEE COMMITTEES TO PARTICIPATE IN CLINIC PLANNING AND OPERATION AND OTHERS REGULARLY CONDUCT PATIENTSATISFACTION SURVEYS MOREOVER INSTEAD OF MAKING USE OF THEIR INHOUSE CLINICS MANDATORY VIRTUALLY ALL EMPLOYERS HAVE OFFERED THEM AS PART OF A WIDER RANGE OF HEALTHCARE OPTIONS TO ENCOURAGE THEIR USE OVER OTHER OPTIONS MOST COMPANIES OFFER LOW FEES RANGING FROM 15 A VISIT TO NOTHING REGARDLESS OF THE LEVEL OF SERVICES PROVIDED THAT HAS SPURRED HIGH USAGE RATES FOR MOST CLINICS ABOUT HALF OF THE 31000 PEOPLE ELIGIBLE TO USE GOODYEAR'S AKRON OHIO FACILITY DO SO AND AT ITS OKLAHOMA FACILITY THE PERCENTAGE IS UP TO 92 BUT EVEN WHEN FACED WITH MORE EXPENSIVE OFFICE VISITS COPAYMENTS AND DEDUCTIBLES SOME EMPLOYEES ARE RELUCTANT TO CHANGE GOODYEAR PIPE FITTER GARY DICEGLIO HAS CHOSEN TO REMAIN WITH HS HEALTH MAINTENANCE ORGANIZATION IN AKRON MY WIFE AND CHILDREN HAD THEIR OWN DOCTORS THAT THEY LIKED HE SAYS THE SAVINGS I WOULD HAVE GOTTEN WEREN'T SUBSTANTIAL ENOUGH TO MAKE MY FAMILY GIVE UP THAT TRUST WITH STARTUP COSTS RANGING FROM 500000 TO WELL OVER 1 MILLION SOME INDUSTRY OBSERVERS QUESTION WHETHER THE CLINICS WILL BE BIG MONEY SAVERS DENVERBASED GATES CORP WHICH HAS OPERATED A CLINIC FOR 50 YEARS FIGURES THAT IT SAVES UP TO 500 A PERSON ANNUALLY BUT FEW OTHER OPERATORS CAN POINT TO DRAMATIC SHORTTERM SAVINGS AND ONE STUDY OF CLINICS AT SEVERAL CORPORATIONS INDICATED THAT THE ANNUAL SAVINGS RANGED FROM A HIGH OF 140 PER COVERED PERSON TO A PALTRY 13 MAKING ESTIMATES IS ALSO TRICKY GIVEN THE INDUSTRY'S DOUBLEDIGIT INFLATION WIDELY VARYING SERVICE LEVELS AND THE SHORT TRACK RECORD OF MOST MODERNERA CLINICS BUT SUPPORTERS OF THE CONCEPT CONTEND THAT IN THEORY AT LEAST COMPANIES COULD REAP SIZEABLE SAVINGS RUNNING THEIR OWN OPERATION WOULD ELIMINATE COSTLY FEES CHARGED BY HEALTH MAINTENANCE ORGANIZATIONS SERVICES COULD BE TAILORED TO THE NEEDS OF THEIR INDIVIDUAL WORK FORCES AND SPENDING USAGE AND COST DATA COULD BE MONITORED MORE DIRECTLY FINALLY THEY ARGUE SALARIED DOCTORS DON'T HAVE AN INCENTIVE TO ORDER UP UNNECESSARY TESTS TREATMENTS OR PRESCRIPTIONS JIM NORTON A HEALTHCARE CONSULTANT AT A FOSTER HIGGINS ESTIMATES THAT A COMBINED CLINICPHARMACY OPERATION CAN SHAVE ABOUT 6 OFF DIRECT HEALTHCARE COSTS A PRIMARYCARE FACILITY CAN TRIGGER EVEN BROADER INDIRECT SAVINGS CONSULTANTS AND CORPORATE MEDICAL EXECUTIVES CONTEND BY SERVING AS A GATEKEEPER TO HOSPITALS AND EXPENSIVE OUTSIDE SPECIALISTS THAT ACCOUNT FOR ROUGHLY 70 OF A COMPANY'S HEALTHCARE COSTS SOME CORPORATIONS WITH CLINICS HAVE ALSO BEGUN CONTRACTING DIRECTLY WITH HOSPITALS AND SPECIALISTS THIS IS CLEARLY A LONGTERM INVESTMENT SAYS DR PROVATO OF GTE WHO ESTIMATES HIS COMPANY WON'T REALIZE DRAMATIC SAVINGS FOR FIVE OR 10 YEARS MANY LARGE EMPLOYERS CONTEND THAT THEY REALLY DON'T HAVE ANY CHOICE BUT TO TRY SOMETHING NEW US STEEL'S CURRENT HEALTH PLAN COST THE COMPANY 90 MILLION IN 1992 AT GARY WORKS ALONE WE'VE GOT TO TAKE CONTROL OF THIS SAYS DAVID PRYZBYLSKI GARY WORKS' MANAGER OF EMPLOYEE RELATIONS WE CAN'T AFFORD TO WAIT 9303230005 930323 COMMODITIES GOLD FUTURES PRICES MOVE HIGHER IN REACTION TO RUSSIAN TURMOIL BUT RALLY MAY BE LIMITED BY WARREN GETLER AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES MOVED HIGHER IN REACTION TO CONTINUING POLITICAL UNCERTAINTY IN RUSSIA BUT THE PRICE INCREASE WAS TOO LIMITED TO SUGGEST ANY LONGTERM RALLY ANALYSTS SAID IF ANYTHING EVENTS IN RUSSIA ARE GIVING THE MARKET A FIRM UNDERTONE ABOVE 330 AN OUNCE SAID IAN MACDONALD A SENIOR PRECIOUSMETALS ANALYST WITH CREDIT SUISSE IN NEW YORK GOLD IS VIEWED BY SOME INVESTORS AS A HAVEN IN TIMES OF POLITICAL UNCERTAINTY AND CHAOS ON THE COMMODITY EXCHANGE IN NEW YORK GOLD FOR APRIL DELIVERY CLOSED AT 33330 AN OUNCE UP 100 ON THE RUSSIAN CONCERNS IN THE LONDON CASH MARKET GOLD FINISHED AT 33300 ALSO UP 100 IN ADDITION TO REACTING TO EVENTS IN MOSCOW GOLD HAS BEEN BUOYED BY WORRIES ABOUT SIGNS OF ACCELERATING INFLATION IN CERTAIN SECTORS OF THE US ECONOMY INCLUDING AGRICULTURE AND LUMBER ANALYSTS SAID FOR FUTURES PRICES OF GOLD AND OTHER PRECIOUS METALS TO SHOOT SKYWARD HOWEVER THE SITUATION IN RUSSIA WOULD HAVE TO DETERIORATE INTO MAJOR UNREST AND AMONG OTHER THINGS THREATEN DISRUPTION OF RUSSIA'S VAST MINING INDUSTRY SAID MR MACDONALD RUSSIA IS THE SECONDLARGEST PRODUCER OF GOLD AND PLATINUM AFTER SOUTH AFRICA PLATINUM FOR APRIL DELIVERY CLOSED 160 HIGHER AT 35610 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE FOR NOW SOME ANALYSTS SAID BELEAGUERED PRESIDENT BORIS YELTSIN SEEMS TO HAVE RETAINED THE SUPPORT OF THE RUSSIAN MILITARY IN HIS BID FOR A NATIONAL VOTE ON HIS LEADERSHIP NEXT MONTH AND HENCE A SLIDE INTO STREETLEVEL POLITICAL CHAOS IS UNLIKELY FOR THE IMMEDIATE FUTURE MR MACDONALD PREDICTS THAT IF GOLD FOR APRIL DELIVERY WERE TO TEST 340 AN OUNCE IN THE NEXT WEEKS GOLD FUTURES MIGHT THEN EXPERIENCE A SUSTAINED RALLY TO EVEN HIGHER LEVELS ANALYSTS AT MORGAN GUARANTY TRUST IN FACT RECENTLY PREDICTED THAT 340 IS WITHIN REACH THE GOLD MARKET HAS BEEN FORMING A BASE FOR SOME TIME MORGAN GUARANTY SAID IN A RECENT REPORT THE BANK NOTED THAT GOLD PRICES HAVE BEEN TRADING IN A NARROW RANGE DESPITE UNUSUALLY LARGE VOLUMES OF GOLD ON THE MARKET PROVIDED CENTRAL BANKS REFRAIN FROM SELLING LARGE QUANTITIES OF BULLION THE PRICE COULD RALLY TO 340 IT SAID THE NOTION THAT GOLD FUTURES MIGHT BE POISED FOR A SHORTTERM RALLY PROMPTED SOME INVESTORS WHO HAD BEEN BETTING ON FURTHER PRICE DECLINES TO COVER THEIR SHORT POSITIONS IN TRADING YESTERDAY DEALERS SAID IT ALSO HELPED PUSH SOUTH AFRICAN GOLD MINING SHARES 21 HIGHER YESTERDAY THEY ADDED BUT OTHER ANALYSTS REMAIN SKEPTICAL OF ANY SUSTAINED RESURGENCE OF GOLD EDWIN ARNOLD METAL ANALYST AT MERRILL LYNCH IN LONDON SAID THAT THE GOLD MARKET APPEARS TO HAVE BOTTOMED OUT BUT HE CAUTIONED AGAINST OVERENTHUSIASM HE SAID FOR INSTANCE SOUTH AFRICAN AND AUSTRALIAN PRODUCERS ARE WAITING TO SELL INVENTORY AT HIGHER PRICES ANOTHER IMPEDIMENT TO A SUSTAINED RALLY IS THE PRICE SENSITIVITY TO GOLD AMONG FAR EASTERN PURCHASERS OF THE METAL MR ARNOLD SAID IF PRICES RALLY FURTHER DEMAND FOR GOLD FROM JEWELERS AND OTHER INDUSTRIAL USERS WILL WANE HE PREDICTED DEMAND FROM SUCH SOURCES HAS FALLEN IN THE WAKE OF THE RECENT PRICE RISE SWISS AND LONDON BULLION DEALERS SAID LOOKING AHEAD TO COMMODITY MARKETS THIS WEEK GRAINS & SOYBEANS PRICES OF MOST CORN SOYBEAN AND WHEAT FUTURES CONTRACTS SLIPPED AMID CONCERN THAT THE US GOVERNMENT WOULD SCRAP ANY PLANS FOR ADDITIONAL FOOD AID TO MOSCOW IF RUSSIAN PRESIDENT BORIS YELTSIN LOSES HIS POWER STRUGGLE WITH PARLIAMENT AT THE CHICAGO BOARD OF TRADE YESTERDAY THE WHEAT CONTRACT FOR MAY DELIVERY SANK 65 CENTS A BUSHEL TO SETTLE AT 341 A BUSHEL AFTER THE CLOSE OF TRADING THE AGRICULTURE DEPARTMENT ANNOUNCED A DONATION OF 210000 METRIC TONS OF CORN TO RUSSIA THE 20 MILLION PACKAGE WHICH THE CLINTON ADMINISTRATION SAID IS DESIGNED TO SUPPORT DEMOCRACTIC REFORM FOLLOWS A DONATION EARLIER THIS MONTH OF WHEAT AND RICE TO MOSCOW THE MARCH WHEAT CONTRACT BUCKED THE TREND AMID CONTINUING CONCERN ABOUT A TIGHT SUPPLY OF WHEAT AVAILABLE FOR TRADERS TO SATISFY THEIR DELIVERY OBLIGATIONS AT THE EXCHANGE IT ROSE 75 CENTS A BUSHEL TO SETTLE AT 41350 A BUSHEL IN OTHER DEVELOPMENTS ANOTHER SURVEY WAS RELEASED SHOWING THAT CORN FARMERS INTEND TO PLANT FEWER ACRES THIS SPRING THAN LAST YEAR VIGORO CORP A FERTILIZER COMPANY IN CHICAGO SAID A SURVEY OF 450 GROWERS IN FEBRUARY SIGNALS THAT US FARMERS WILL PLANT BETWEEN 75 MILLION ACRES AND 76 MILLION ACRES TO CORN THIS SPRING DOWN ROUGHLY 5 FROM THE 793 MILLION ACRES PLANTED TO CORN LAST YEAR CORN ACREAGE IS WIDELY EXPECTED TO DROP BECAUSE LAST YEAR'S RECORD HARVEST HAS DEPRESSED CROP PRICES ENERGY WORLD OIL PRICES PLUNGED IN A TECHNICALLY DRIVEN SELLOFF THAT BEGAN IN US FUTURES TRADING RUSSIA'S POLITICAL CRISIS PROVIDED SOME SUPPORT TO PETROLEUM PRICES IN EARLY EUROPEAN TRADING BUT WORLD OIL MARKETS NEVERTHELESS SUFFERED SOME OF THE SHARPEST LOSSES OF RECENT WEEKS AFTER THE US SELLOFF BEGAN SOME FUELS WERE DOWN MORE THAN ONE CENT A GALLON ON THE NEW YORK MERCANTILE EXCHANGE AFTER PLUNGING THROUGH IMPORTANT SUPPORT LEVELS LIGHT LOWSULFUR CRUDE OIL FOR APRIL DELIVERY SETTLED 56 CENTS A BARREL LOWER AT 1952 SOME OF THE VOLATILITY OF THE APRIL CONTRACT CAME FROM ITS EXPIRATION YESTERDAY BUT MAY CRUDE WAS ALSO DOWN SHARPLY DROPPING 46 CENTS A BARREL TO 1976 RUSSIA'S OIL EXPORTS WERE FALLING HOWEVER EVEN BEFORE ITS LATEST TROUBLES BEGAN ALSO WORLD OIL MARKETS ARE APPROACHING A SEASONABLYSLACK DEMAND PERIOD AND OTHER EXPORTERS SUCH AS SAUDI ARABIA AND KUWAIT CAN REPLACE LOST RUSSIAN OIL IN WORLD MARKETS STILL ANALYSTS SUGGESTED POTENTIAL DISRUPTIONS OF OIL EXPORTS FROM RUSSIA WHICH RANKS AMONG THE WORLD'S TOP THREE PRODUCERS WILL AT LEAST HELP TO HOLD A FLOOR UNDER FALLING OIL PRICES 9303230004 930323 WHAT'S NEWS BUSINESS AND FINANCE EUROPEAN STOCKS SANK IN REACTION TO MOSCOW'S POLITICAL TURMOIL AS WELL AS TO DOMESTIC ECONOMIC WORRIES EQUITY PRICES SLID 22 IN GERMANY AND 12 IN FRANCE AND BRITAIN IN THE US STOCKS FELL SLIGHTLY WHILE BOND PRICES ADVANCED THE DOW JONES INDUSTRIALS SLIPPED 810 POINTS TO 346348 THE DOLLAR ENDED MIXED TENNECO IS TAKING AN 843 MILLION CHARGE AS PART OF A FURTHER RESTRUCTURING OF ITS CASE AGRICULTURAL AND CONSTRUCTION EQUIPMENT UNIT THE CHARGE AND SOME ACCOUNTING MOVES CAUSED THE RESTATEMENT OF A PROFIT FOR 1992 TO A LOSS SEPARATELY TENNECO PLANS TO SELL 11 BILLION IN STOCK TO THE PUBLIC DETROIT'S CAR MAKERS WON A PROMISE FROM THE HEAD OF THE EPA TO CONSIDER ALTERING FUEL ECONOMY RULES THE INDUSTRY HAS FOUGHT FOR YEARS AUTO EXECUTIVES WERE PLEASED BY THE ENVIRONMENTAL OFFICIAL'S CONCILIATORY SIGNALS ANHEUSERBUSCH AGREED TO ACQUIRE 18 OF GRUPO MODELO MEXICO'S BIGGEST BREWER AND THE MAKER OF CORONA BEER FOR 477 MILLION ANHEUSER EVENTUALLY COULD RAISE ITS STAKE TO ABOUT 50 THE US COMPANY IS LOOKING AT BUYING OTHER FOREIGN BREWERS AND BRANDS SHEARSON'S OUSTED CEO HOWARD CLARK JR IS GETTING A SEVERANCE PACKAGE OF ABOUT 22 MILLION THE RELATIVELY SMALL PAYMENT REFLECTS A TREND AMONG US COMPANIES AND SUGGESTS PARENT AMERICAN EXPRESS REMAINS WARY ABOUT INVESTOR SENTIMENT CLINTON'S NOMINEE FOR A TOP TRADE POST IS REGISTERED AS AN AGENT FOR COMPANIES IN MEXICO CANADA AND JAPAN HER WORK AS A LAWYER FOR SUCH CLIENTS MAY COMPLICATE HER CONFIRMATION BID SWEDEN'S PROCORDIA AGREED TO ACQUIRE THE ERBAMONT DRUG UNIT OF ITALY'S MONTEDISON FOR ABOUT 12 BILLION THE MERGER OF ERBAMONT AND PROCORDIA'S KABI PHARMACIA UNIT WOULD CREATE EUROPE'S EIGHTHBIGGEST DRUG MAKER THE SUPREME COURT AGREED TO DECIDE WHETHER INSURERS SHOULD BE HELD TO TOUGH FEDERAL STANDARDS FOR THE MANAGEMENT OF SOCALLED GROUP ANNUITY CONTRACTS PURCHASED BY PENSION PLANS ON BEHALF OF EMPLOYEES LESLIE FAY COS HIRED A PARTNER OF ACCOUNTING FIRM ARTHUR ANDERSEN TO BE ITS FINANCE CHIEF IN THE WAKE OF A SCANDAL AT THE APPAREL MAKER INVOLVING ARTIFICIALLY INFLATED EARNINGS THE COMPANY CONTINUES TO BLAME MIDLEVEL OFFICIALS FOR THE ACCOUNTING SCHEME ARCO NAMED MIKE BOWLIN PRESIDENT AND CHIEF OPERATING OFFICER APPARENTLY PUTTING HIM IN LINE TO SUCCEED LODWRICK COOK WHEN HE RETIRES AS THE OIL COMPANY'S CEO IN TWO YEARS RONALD PERELMAN'S HOLDING COMPANY IS OFFERING TO BUY AN ADDITIONAL 20 STAKE IN MARVEL ENTERTAINMENT FOR 25 A SHARE THE COMIC BOOK COMPANY'S STOCK SURGED 425 TO 2375 CADENCE DESIGN EXPECTS TO POST A FIRSTQUARTER LOSS APPARENTLY REFLECTING PROBLEMS IN DIGESTING A RIVAL SOFTWARE MAKER ACQUIRED IN LATE 1991 CADENCE STOCK SANK 6 OR 36 TO 1050 BONDS LEHMAN BROTHERS TREASURY INDEX 505473 UP 816 COMMODITIES OIL 1952 A BARREL OFF 56 CENTS DOW JONES FUTURES INDEX 13133 OFF 067 SPOT INDEX 12663 UP 027 DOLLAR 11563 YEN OFF 047 16380 MARKS UP 00040 9303230003 930323 AIRLINES SETTLE LAWSUIT INVOLVING PRICE FIXING IN 458 MILLION PACT ATLANTA AP MILLIONS OF AIR TRAVELERS WILL GET DISCOUNT COUPONS UNDER A 458 MILLION SETTLEMENT APPROVED IN A PRICEFIXING LAWSUIT AGAINST THE NATION'S BIGGEST AIRLINES THE RULING BY US DISTRICT JUDGE MARVIN H SHOOB CAME AFTER THREE YEARS OF LITIGATION OVER CHARGES THAT THE AIRLINES USED A COMPUTERIZED SYSTEM TO MUTUALLY RAISE TICKET PRICES THE AIRLINES DENIED WRONGDOING BUT SAID THEY AGREED TO SETTLE TO AVOID A LENGTHY AND EXPENSIVE TRIAL IN A 141PAGE RULING JUDGE SHOOB APPROVED THE SETTLEMENT BASICALLY AS IT WAS PRESENTED TO HIM LAST SUMMER BUT HE CUT ATTORNEYS' FEES FROM THE 24 MILLION THEY REQUESTED TO 144 MILLION VIRTUALLY ANYONE WHO BOUGHT TICKETS ON ANY OF NINE AIRLINES BETWEEN JAN 1 1988 AND JUNE 30 1992 IS ELIGIBLE FOR AN AWARD MOST WILL RECEIVE COUPONS GOOD FOR DISCOUNTS ON FUTURE TICKET PURCHASES THOUGH A FEW WILL GET CASH THE LEAD ATTORNEYS IN THE CASE HAD ALREADY LEFT THEIR OFFICES WHEN THE RULING WAS RELEASED AND COULDN'T BE REACHED FOR COMMENT THE MAIN SETTLEMENT IN THE CLASSACTION LAWSUIT COVERS MILLIONS OF PEOPLE WHO BOUGHT TICKETS ON DELTA AIR LINES UAL CORP'S UNITED AIRLINES AMR CORP'S AMERICAN AIRLINES AND USAIR GROUP INC'S USAIR UNIT SIMILAR SETTLEMENTS WERE REACHED SEPARATELY BY NORTHWEST AIRLINES AND TRANS WORLD AIRLINES NORTHWEST AIRLINES IS A UNIT OF NWA INC A UNIT OF WINGS HOLDINGS INC THE REMAINING AIRLINES PAN AMERICAN WORLD AIRWAYS WORLD AIRWAYS AND MIDWAY AIRLINES HAVE EITHER GONE OUT OF BUSINESS OR FILED FOR BANKRUPTCY PROTECTION BUT UNDER THE SETTLEMENT PEOPLE WHO FLEW ON THOSE AIRLINES CAN ALSO GET COUPONS FOR DISCOUNTS ON OTHER AIRLINES ALSO NAMED IN THE LAWSUIT WAS THE AIRLINE TARIFF PUBLISHING CO A COMPUTERIZED CLEARINGHOUSE FOR AIR FARES WORLD AIRWAYS CONTINUES TO OPERATE AND WAS NOT INVOLVED IN A RECENT SETTLEMENT OF A PRICEFIXING LAWSUIT AGAINST SEVERAL AIRLINES IN AN ARTICLE TUESDAY THE CARRIER'S STATUS WAS MISSTATED 9303230002 930323 WHO'S NEWS LESLIE FAY NAMES ANDERSEN PARTNER AS FINANCIAL CHIEF BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A MOVE DESIGNED TO RESTORE CONFIDENCE IN ITS FINANCIAL CONTROLS FOLLOWING AN INTERNAL ACCOUNTING SCANDAL LESLIE FAY COS SAID IT HIRED JOHN S DUBEL A PARTNER IN THE ACCOUNTING FIRM OF ARTHUR ANDERSEN & CO AS ITS CHIEF FINANCIAL OFFICER THE DRESS MAKER ALSO NAMED A NEW CORPORATE CONTROLLER LATE LAST WEEK LESLIE FAY RELIEVED PAUL F POLISHAN OF HIS DUTIES AS CHIEF FINANCIAL OFFICER MR POLISHAN 46 YEARS OLD HAD HELD THE POST SINCE 1987 HE WAS PLACED ON A PAID LEAVE OF ABSENCE PENDING THE OUTCOME OF THE CURRENT INVESTIGATION CONCERNING FALSE ENTRIES MADE IN LESLIE FAY'S BOOKS THAT INFLATED THE COMPANY'S EARNINGS IN 1991 AND 1992 THE INVESTIGATION BEING CONDUCTED BY ARTHUR ANDERSEN AND THE NEW YORK LAW FIRM OF WEIL GOTSCHAL & MANGES IS EXPECTED TO BE CONCLUDED IN A FEW WEEKS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION MR POLISHAN'S DEPARTURE DOESN'T SHED ANY NEW LIGHT ON THE MATTER OF WHO AT LESLIE FAY WAS INVOLVED IN THE FINANCIAL MISREPORTING OR THEIR MOTIVES YESTERDAY LESLIE FAY OFFICIALS CONTINUED TO MAINTAIN THAT THE PARTICIPANTS IN THE ACCOUNTING SCHEME WERE LIMITED TO MIDLEVEL COMPANY CONTROLLERS LED BY DONALD F KENIA THE CORPORATE CONTROLLER WHO CONFESSED TO HAVING MADE FALSE ENTRIES INTO THE COMPANY'S BOOKS MR KENIA 40 HAS BEEN SUSPENDED FROM HIS DUTIES WITH PAY MR POLISHAN'S POSITION AS MR KENIA'S IMMEDIATE SUPERVISOR MADE IT IMPOSSIBLE FOR MR POLISHAN TO REMAIN IN LESLIE FAY'S TOP FINANCIAL POST ACCORDING TO HERMAN GORDON LESLIE FAY'S SENIOR VICE PRESIDENT AND GENERAL COUNSEL WE HAVE KNOWN FOR SOME TIME NOW THAT EVEN IF PAUL WERE 150 INNOCENT IT WOULD BE IMPOSSIBLE FOR HIM TO CONTINUE AS CHIEF FINANCIAL OFFICER MR GORDON SAID IN REPLACING MR POLISHAN HE ADDED WE HAVE THE INTEREST OF THE COMPANY AT HEART MR DUBEL 34 SUCCEEDS MR POLISHAN EFFECTIVE APRIL 1 MR DUBEL WAS NAMED TO THE POSITIONS OF SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER AND DIRECTOR A 13YEAR VETERAN AT ARTHUR ANDERSEN WHERE HE HAS BEEN A PARTNER SINCE 1991 MR DUBEL HAS BEEN WORKING FOR THE PAST MONTH WITH LESLIE FAY'S MANAGEMENT AND DIRECTORS ON THE COMPANY'S BANK NEGOTIATIONS AND STRATEGIC TURNAROUND PLAN SUCCEEDING MR KENIA AS CORPORATE CONTROLLER IS PAUL J KITTNER 43 WHO SINCE 1989 HAD SERVED AS CHIEF FINANCIAL OFFICER AND TREASURER OF HERO GROUP LTD A NEW YORK WOMEN'S APPAREL MAKER LESLIE FAY ALSO HIRED GARY BLEDSOE 50 TO BE DIRECTOR OF MANAGEMENT INFORMATION SERVICES A NEW POSITION HE WILL BE IN CHARGE OF ALL OF THE COMPANY'S COMPUTER SYSTEMS INCLUDING THE COMPANY'S OVERSEAS PRODUCTION MR BLEDSOE WAS FORMERLY DIRECTOR OF MANAGEMENT INFORMATION SYSTEMS AND OPERATIONS AT GALERIAS PRECIADOS A MADRIDBASED DEPARTMENT STORE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY LESLIE FAY COMMON CLOSED AT 525 OFF 125 CENTS WITH MR POLISHAN NO LONGER FINANCIAL CHIEF AND IN LIGHT OF THE COMPANY'S RECENTLY ANNOUNCED DECISION TO CLOSE SOME UNPROFITABLE APPAREL DIVISIONS I THINK THAT THEY'RE BITING THE BULLET THEY ARE TAKING THE RIGHT STEPS SAID ED JOHNSON AN ANALYST AT JOHNSON REDBOOK SERVICES NOW WE NEED TO SEE WHAT KIND OF FINANCIAL CONTROLS THEY WILL PUT IN TO SEE THAT IT DOESN'T HAPPEN AGAIN HE PREDICTED IT WILL TAKE SIX MONTHS OR LONGER FOR LESLIE FAY TO WIN BACK THE CONFIDENCE OF THE INVESTOR ANOTHER WALL STREET ANALYST WHO REQUESTED ANONYMITY ESTIMATES THAT LESLIE FAY WILL POST A COMBINED PRETAX LOSS OF MORE THAN 50 MILLION FOR 1991 AND 1992 THE YEARS BEING RESTATED ALL THEY'VE DONE IS CHANGED BEAN COUNTERS THE ANALYST SAID THE BIG QUESTION THAT REMAINS TO BE ANSWERED IS HOW IS THE COMPANY GOING TO BE OPERATED DIFFERENTLY WHAT ARE THEY GOING TO DO TO SELL MORE CLOTHES AT A PROFIT 9303230001 930323 OTC FOCUS NASDAQ SHARES DECLINE 610 ON TURMOIL IN RUSSIA EFFECTS OF TRIPLE WITCHING' BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK POLITICAL TURMOIL IN RUSSIA AND INSTABILITY STEMMING FROM FRIDAY'S TRIPLE WITCHING SENT OVERTHECOUNTER STOCKS LOWER TECHNOLOGY ISSUES WERE HIT PARTICULARLY HARD AFTER GAINING SLIGHTLY FRIDAY THE NASDAQ COMPOSITE INDEX FINISHED THE SESSION DOWN 610 POINTS OR 089 AT 67662 ADVANCING ISSUES TRAILED DECLINERS 932 TO 1684 MARKET OBSERVERS SAID MUCH OF THE SELLING ESPECIALLY EARLY IN THE DAY WAS TIED TO UNCERTAINTY OVER BORIS YELTSIN'S PRESIDENCY IN RUSSIA THE CONFUSION OVER RUSSIA SEEMS TO BREED SELLERS SAID JOHN AVIGNONE HEAD OF OTC TRADING AT CONNING & CO RUSSIA'S CONSTITUTIONAL COURT BEGAN CONSIDERING THE POWER STRUGGLE BETWEEN MR YELTSIN AND THE HARDLINE PARLIAMENT YESTERDAY IF THE COURT RULES AGAINST PRESIDENT YELTSIN THE CONGRESS OF PEOPLE'S DEPUTIES THE HIGHEST LEGISLATIVE BODY COULD MOVE TO IMPEACH HIM MR AVIGNONE SAID THE BOND MARKET'S RECOVERY IN THE LATE AFTERNOON HELPED PUSH STOCK PRICES HIGHER NEAR THE CLOSE THE TREASURY'S 30YEAR BOND FINISHED LESS THAN 1/8 POINT HIGHER WITH THE YIELD AT 680 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME SLIPPED TO 181114900 SHARES FROM 195497200 SHARES FRIDAY ANALYSTS ATTRIBUTED SOME OF THE SELLING TO FRIDAY'S QUARTERLY EXPIRATION OF STOCKINDEX FUTURES STOCKINDEX OPTIONS AND OPTIONS ON INDIVIDUAL STOCKS KNOWN AS TRIPLE WITCHING TRIPLE WITCHING OFTEN LEAVES THE MARKET IN A ROCKY CONDITION FOR THE NEXT TRADING DAY OR TWO THE BUYERS JUST WEREN'T THERE AND TECHNOLOGY AND HEALTHCARE STOCKS LED THE DECLINERS SAID HEDI REYNOLDS MANAGING DIRECTOR OF NASDAQ TRADING AT MORGAN KEEGAN & CO MARKET PLAYERS SAID THERE SEEMED TO BE A GREAT DEAL OF FEAR IN THE TECHNOLOGY SECTOR AND INVESTORS WERE LOOKING FOR A REASON TO SELL THEY NOTED FEW FUNDAMENTAL REASONS TO ACCOUNT FOR THE SECTOR'S RECENT POOR SHOWING APPLE COMPUTER SLIPPED 1/2 TO 53 1/4 AS THE COMPUTER MAKER UNVEILED NEW SERVERS AND A SEARCH AND RETRIEVAL SERVICE APPLE ALSO SAID IT HAS SIGNED AN AGREEMENT WITH DIGITAL EQUIPMENT THAT WILL ALLOW LARGE BUSINESS CUSTOMERS TO PURCHASE ITS PRODUCTS FROM DIGITAL ON THE BIG BOARD DIGITAL FELL 3/8 TO 45 5/8 INTEL WAS OFF 3/4 TO 113 AS ANALYSTS CONTINUED TO GAUGE BUSINESS CONDITIONS FOR THE COMPANY'S TOPOFTHELINE 486 CHIP INTEL CONFIRMED THAT IT HAS BEGUN SHIPPING ITS FIFTHGENERATION PENTIUM PROCESSOR AND IT EXPECTS VOLUME TO SURPASS ONE MILLION NEXT YEAR MICROSOFT FELL 7/8 TO 83 3/8 SUN MICROSYSTEMS SHED 1 TO 29 1/8 AUTODESK GAVE UP 1 3/8 TO FINISH AT 41 3/8 DELL COMPUTER LOST 3/4 TO 34 1/2 MICROGRAFX OF RICHARDSON TEXAS PLUNGED 1 7/8 TO 5 7/8 THE COMPANY SAID FRIDAY IT EXPECTS TO REPORT A LOSS FOR THE FISCAL FOURTH QUARTER ENDING MARCH 31 AND DISCLOSED THAT ITS JAPANESE UNIT WAS FINANCIALLY MISMANAGED OXFORD HEALTH WAS DOWN 2 1/2 AT 37 AN OPPENHEIMER & CO ANALYST SAID THE COMPANY IS SEEN AS PARTICULARLY VULNERABLE TO PENDING HEALTHCARE REFORM AND THAT CONCERN HAS SPARKED AN INTEREST AMONG SHORT SELLERS PRUDENTIAL SECURITIES RAISED ITS INVESTMENT RATINGS TO BUY FROM HOLD ON FOUR BIOTECHNOLOGY ISSUES AMGEN GAINED 2 TO 35 BIOGEN ROSE 3/4 TO 28 1/4 CHIRON JUMPED 1 1/8 TO 51 1/2 AND GENELABS TECH GAINED 7/8 TO 6 PRUDENTIAL CITED STOCK PRICE VALUES AND A POSITIVE TREND IN INVESTOR SENTIMENT FOR THE UPGRADES JB HUNT ADDED 1/8 TO 18 1/4 AFTER MERRILL LYNCH UPGRADED ITS SHORTTERM INVESTMENT RATING TO ABOVE AVERAGE FROM NEUTRAL CITING THE LOWELL ARIZ TRANSPORT HOLDING COMPANY'S STOCK PRICE RELIGIOUS BOOK AND BIBLE PUBLISHER THOMAS NELSON ROSE 1/2 TO 17 THE NASHVILLE TENN COMPANY CALLED ANALYSTS' FORECASTS OF 10 CENTS A SHARE TO 12 CENTS A SHARE FOR THE FOURTH QUARTER ENDING MARCH 31 REASONABLE THE COMPANY EARNED 15 CENTS A SHARE FOR THE YEAREARLIER QUARTER 9303230149 930205 MAKING SHAKESPEARE FUN IS A PROBLEM FOR BRITISH PURISTS OLD GUARD AND AVANTGARDE JOUST OVER BARD'S MEANING FOR TODAY'S 14YEAROLDS BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL STRATFORDONAVON ENGLAND AT WILLIAM SHAKESPEARE'S OLD SCHOOL LESSONS ON THE BARD HAVE BECOME SUCH STUFF AS BAD DREAMS ARE MADE ON NOISOME STENCH POX OF WRINKLES WRETCHED PULING FOOL SHOUTING SHAKESPEAREAN INSULTS IS ONE WAY THAT PUPILS NOW STUDY HIS LANGUAGE THEY LEARN TO SUMMARIZE HIS PLOTS WITH TABLOID HEADLINES SUCH AS CAESAR KILLED IN BLOODBATH MASSACRE AND AFTER CLASS THEY WATCH A STAGE PRODUCTION IN WHICH ROMEO SHOOTS DRUGS AND JULIET'S FATHER CHOMPS ON CIGARS LIKE A CARTOON CAPITALIST SHAKESPEARE IS AN INVITATION TO RECREATE AND INFER SAYS PERRY MILLS A TEACHER AT STRATFORD'S KING EDWARD VI SCHOOL THERE AREN'T ANY RIGHT OR WRONG WAYS TO ENJOY HIS PLAYS SOON THOUGH THERE WILL BE RIGHT AND WRONG ANSWERS FOR MR MILLS'S PUPILS BRITAIN'S GOVERNMENT HAS DECREED THAT 14YEAROLDS MUST TAKE A STANDARDIZED TEST ON A SHAKESPEARE PLAY THAT HAS ENRAGED TEACHERS AND BROUGHT ON A SKIRMISH BETWEEN OLD GUARD AND AVANTGARDE OVER THE TRUE MEANING OF SHAKESPEARE'S WORK SHAKESPEARE WAS A SUBVERSIVE CLAIMS DIRECTOR MICHAEL BOGDANOV WHO HAS GONE UNTO THE BREACH WITH LEFTWING FORCES ANARCHISTS NEED TO RECLAIM HIM FROM THE ESTABLISHMENT WHICH HAS HIJACKED HIS WORDS TO SHORE UP THE STATUS QUO FROTH AND SCUM CRY CONSERVATIVES SOME OF WHOM CLAIM THE BARD OF AVON WAS AN EARLY THATCHERITE SHAKESPEARE WAS AN UPWARDLY MOBILE FELLOW WHO KNEW THE VALUE OF MONEY SAYS BRIAN JOHN AN ENGLISH TEACHER WHO RECENTLY CHALLENGED MR BOGDANOV AT A PUBLIC DEBATE THERE'S NO DOUBT THAT HE WAS A MAN OF THE POLITICAL RIGHT IN BRITISH SCHOOLS THE DAYS WHEN TEACHERS PLODDED THROUGH SHAKESPEARE LINE BY LINE ARE NEARLY GONE AND GOOD RIDDANCE SAY MOST TEACHERS FOR KIDS IT'S THE QUICKEST WAY TO KILL SHAKESPEARE STONE DEAD SAYS MR MILLS TESTS HE ADDS WILL FORCE TEACHERS BACK TO DULL DESKBOUND STUDY RATHER THAN THE LIVELY METHODS THAT HAVE NOW BECOME THE NORM A SAMPLE OF SUCH TECHNIQUES CAN BE FOUND IN SHAKESPEARE AND SCHOOLS A POPULAR NEWSLETTER THAT MR MILLS COEDITS ONE TIP DEVELOP FOOTBALL CHANTS FOR THE CAPULETS AND THE MONTAGUES SO STUDENTS CAN EXPERIENCE THE FEUDING IN ROMEO AND JULIET A TEACHER TELLS HOW HE CREATED A DARTH VADER ATMOSPHERE IN AS YOU LIKE IT AND ENCOURAGED STUDENTS TO AUGMENT THE SCRIPT WITH JOKES OF THEIR OWN THAT MAY BE FUN BUT IS IT SHAKESPEARE I'M SKEPTICAL SAYS JOHN MARENBON A CAMBRIDGE DON WHO IS HELPING TO DEVELOP THE NEW TESTS TOO OFTEN I THINK THESE NEW METHODS ARE A WAY OF PRETENDING TO TEACH SHAKESPEARE WHEN THAT'S NOT WHAT YOU'RE DOING AT ALL DR MARENBON SAYS STUDENTS IN THEIR SALAD DAYS SHOULD MASTER CERTAIN BASICS PLOT THEME CHARACTER SO LONG AS THAT'S DONE AND CONFIRMED BY TESTING TEACHERS CAN DO AS THEY LIKE IF STANDING ON YOUR HEAD HELPS YOU ENJOY SHAKESPEARE FINE HE SAYS BUT IF YOU CAN'T ANSWER SIMPLE QUESTIONS YOU CAN'T SAY YOU KNOW THE PLAYS DIRECTORS AND ACADEMICS HAVE JOINED THE FRAY WHICH HAS GROWN SO HOT THAT MOST TEACHERS NOW SAY THEY WILL BOYCOTT THE TESTS SHEILA LAWLOR AN EDUCATION SPECIALIST AT A RIGHTWING LONDON THINK TANK SAYS SHE STANDS BY OLD METHODS SUCH AS MEMORIZING SOLILOQUIES BECAUSE YOU CARRY SHAKESPEARE THROUGH LIFE AS A 12YEAROLD SHE SAYS THE QUALITY OF MERCY SPEECH IN THE MERCHANT OF VENICE MEANT NOTHING TO HER BUT IN MIDDLE AGE IT COMES BACK TO ME OFTEN AS A WISE BIT OF POETRY THAT I'M GLAD I KNOW THOSE ON THE LEFT DISMISS SUCH NOTIONS AS ELITIST ALAN SINFIELD AN ENGLISH PROFESSOR AT SUSSEX UNIVERSITY SAYS THE TESTS ARE A WAY TO RECREATE A PROLE CLASS BY MAKING POOR STUDENTS FEEL THAT THEY DON'T EVEN HAVE WHAT IT TAKES WHEN IT COMES TO AN ICON OF OUR NATIONAL CULTURE THEN THERE'S THE DIRECTOR MR BOGDANOV WHOSE WELLREGARDED ENGLISH SHAKESPEARE COMPANY IS A PULPIT FOR HIS UNORTHODOX VIEWS BOTH ON STAGE AND IN SCHOOL WORKSHOPS HIS CURRENT PRODUCTION OF THE TEMPEST IS SET IN A FOUL PUDDLE IN WHICH THE CHARACTERS WALLOW TO HIGHLIGHT THE PLIGHT OF THE HOMELESS AND THE ENVIRONMENT HE SAYS IN HIS NEW ROMEO AND JULIET ROMEO DIES BY JABBING A NEEDLE IN HIS VEINS AND THE DEAD LOVERS BECOME STATUES OF GOLD TO SHOW THEY ARE JUST MATERIAL OBJECTS TO THEIR PARENTS NORMALLY PEOPLE LOOK AT THEIR DEATH AS ROMANTIC BUT IT'S NOT THE DIRECTOR SAYS THESE TWO KIDS ARE DESTROYED BY A SOCIETY DEVOTED TO MERCENARY AND PECUNIARY INTERESTS IN AN EARLIER VERSION HE FILLED FAIR VERONA WITH YUPPIES AND SPORTS CARS LEADING CRITICS TO DUB IT ALFA ROMEO AND JULIET MR BOGDANOV ISN'T THE FIRST TO CAST THE BARD AS A REBEL IN EASTERN EUROPE SHAKESPEARE HAS OFTEN BEEN A VEHICLE FOR DISSENT A ROMANIAN DIRECTOR ONCE MADE THE TREACHEROUS CLAUDIUS RESEMBLE NICOLAE CEAUSESCU LONG BEFORE THAT KARL MARX CITED A TIMON OF ATHENS SPEECH ABOUT GOLD TO SUGGEST THAT SHAKESPEARE CONDEMNED THE POWER OF MONEY INDEED ROMEO TELLS THE APOTHECARY THAT GOLD IS WORSE POISON TO MEN'S SOULS THAN THE DRUGS HE DISPENSES MR BOGDANOV FOR HIS PART IS SOMETHING OF A NIHILIST THERE SHOULD BE A MORATORIUM ON SHAKESPEARE HE CONCLUDES CLOSE THE SHOWS BURN ALL THE THESES THEN PEOPLE CAN START FRESH IN 20 YEARS AND SEE WHAT A REBEL HE REALLY IS SKEPTICS SAY MR BOGDANOV DOTH PROTEST TOO MUCH IF ANYTHING THEY CONTEND SHAKESPEARE WAS A DEFENDER OF SOCIAL ORDER AND HIERARCHY AMONG THE MANY LINES THEY CITE THE MOST FAMOUS ARE FROM TROILUS AND CRESSIDA AND HARK WHAT DISCORD FOLLOWS THE LITTLE THAT IS KNOWN OF SHAKESPEARE'S LIFE ALSO OFFERS SUCCOR TO TORIES AFTER ALL HE WAS A GLOVEMAKER'S SON WHO GOT RICH AND BOUGHT THE SECONDBIGGEST HOUSE IN STRATFORD IN LONDON HE BECAME A SHAREHOLDER IN THE GLOBE THEATER AND WAS INVITED TO THE CORONATION OF JAMES I I LOOK UPON HIM AS AN ENTREPRENEUR AND MONARCHIST SAYS MOLLY LUCAS A GUIDE AT SHAKESPEARE'S BIRTHPLACE IF HE LIVED TODAY HE'D BE IN TELEVISION MOST EXPERTS THOUGH SAY THE BARD PRESENTS MANY VIEWS IN HIS PLAYS WITHOUT ALLYING HIMSELF WITH ANY CAMP AS SHAKESPEARE ONCE WROTE ONE MAN IN HIS TIME PLAYS MANY PARTS THE AUTHOR DOES AS MUCH WITH HIS CHARACTERS SHAKESPEARE'S PLAYS LIKE THE GREAT MYTHS SAY SOMETHING TIMELESS ABOUT HUMAN BEINGS SAYS JOHN BARTON ADVISORY DIRECTOR AT THE ROYAL SHAKESPEARE COMPANY TO IMPOSE YOUR OWN BUZZWORDS AND ISMS ON THE PLAYS IS TO REDUCE RATHER THAN ENLARGE THEM MEANWHILE ALL THIS SOUND AND FURY SEEMS TO SIGNIFY NOTHING FOR STUDENTS AT ONE CLASS WORKSHOP AN ACTOR WITH MR BOGDANOV'S COMPANY ASKS PUPILS IF THEY THINK CONTROL OF MONEY IS RESPONSIBLE FOR ROMEO AND JULIET'S DEATH A GIRL SHAKES HER HEAD JULIET'S TO BLAME SHE SAYS BECAUSE SHE WAS PARTYING TOO HARD WITH ROMEO ADDS A BOY IN A BEER TSHIRT IT'S THE FRIAR'S FAULT HE'S A WARPED PSYCHOPATH IT DOES SEEM HOWEVER THAT SHAKESPEARE'S APPEAL WILL CONTINUE TO ENDURE NO MATTER HOW THE WORKS ARE TAUGHT ON THEIR RECENT TRIP TO SEE ROMEO AND JULIET THE STRATFORD STUDENTS IGNORED MR BOGDANOV'S POLEMICAL PLAYBILL WHICH INCLUDED QUOTES ABOUT RAPE FROM ANDREA DWORKIN THEY GIGGLED AT HIS USE OF GOLD STATUES CIGARS AND NEEDLES BUT THEY LOVED THE PLAY PARTICULARLY THE FIGHT SCENES AND THE COMELY JULIET I WISH I KNEW SOME 14YEAROLD GIRLS LIKE THAT SIGHED ONE TEENAGE BOY THE HIGHEST ACCOLADE CAME FROM ANDREW MCARTHUR 14 WHO FEARED HIS FIRST NIGHT AT THE THEATER WAS GOING TO BE A BORE YOU KNOW HE CONFESSED IT WAS BETTER THAN SUPER NINTENDO SEE RELATED LETTERS LETTERS TO THE EDITOR HOW TO KILL SHAKESPEARE STONE DEAD MODERNIZE WSJ MARCH 22 1993 9302050052 9303230119 930223 TRAVEL TRAVEL AGENTS' FARE SHARE SOARS AS AIRLINES LOG LOSSES BY JONATHAN DAHL STAFF REPORTER OF THE WALL STREET JOURNAL US AIRLINES HAD ANOTHER GRUELING YEAR IN 1992 WITH LOSSES TOTALING 2 BILLION BUT THAT DIDN'T STOP TRAVEL AGENTS FROM GRABBING COMMISSIONS AS HIGH AS 25 AND POCKETING RECORD REVENUES WITH THEIR NUMBERS SWELLING TRAVEL AGENTS HAVE BECOME A MAJOR AND COSTLY FORCE IN THE TRAVEL INDUSTRY EVEN IN BAD TIMES AIRLINES MUST NOW COURT AGENCIES WITH HUGE COMMISSIONS FOR FEAR OF LOSING THEIR BUSINESS OR BEING BOYCOTTED IN ESSENCE AIRLINES NOW COMPETE WITH ONE ANOTHER BY PAYING COMMISSIONS RATHER THAN JUST BY LOWERING FARES THE COMMISSIONS ARE THEN PASSED ON TO TRAVELERS IN THE FORM OF HIGHER FARES AIRLINES ARE BLEEDING THEY HAVE TO PASS THIS ON SAYS PAUL KAROS AIRLINE ANALYST FOR FIRST BOSTON CORP THE IRONY IS THAT PEOPLE USE TRAVEL AGENTS TO SAVE MONEY BUT THE AGENCY SYSTEM IS COSTING THEM MONEY TO SOME DEGREE RISING COMMISSIONS ARE A LEGACY OF AIRLINE DEREGULATION WHEN THE CIVIL AERONAUTICS BOARD STOPPED REGULATING AIR FARES IN 1978 IT ALSO STOPPED DICTATING COMMISSIONS THAT AIRLINES PAID TRAVEL AGENTS ALFRED KAHN A FORMER CAB CHAIRMAN AND THE SOCALLED FATHER OF DEREGULATION SAYS HE WAS WORRIED BACK THEN THAT COMMISSIONS WOULD ULTIMATELY SKYROCKET IN MANY WAYS COMPETITION IN THE AIRLINE INDUSTRY HAS PROVED TO BE MORE DESTRUCTIVE THAN WE HOPED HE SAYS THIS IS JUST ONE OF THE WAYS NOBODY DISPUTES THAT IN AN AGE OF CONFUSING AIR FARES TRAVEL AGENTS PROVIDE A VALUABLE SERVICE TO TRAVELERS THEIR EXPLOSIVE GROWTH IN THE 1980S HAS ALSO TURNED THEM INTO AN INDISPENSABLE TOOL FOR AIRLINES NEEDING A WAY TO SELL TICKETS A DECADE AGO FEWER THAN 15000 TRAVEL AGENCIES SOLD ONLY 40 OF ALL AIRLINE TICKETS TODAY THE NATION'S 32000 AGENCIES HANDLE 85 OF AIRLINE BUSINESS IT WOULD BE A HUGE UNDERTAKING FOR US TO TRY TO SELL ALL THE TICKETS AGENTS DO SAYS A DELTA AIR LINES SPOKESMAN THEY PROVIDE AN IMPORTANT SERVICE BUT THE COST OF THAT SERVICE HAS RISEN FASTER THAN ANY OTHER AIRLINE EXPENSE IN 1992 AIRLINES PAID TRAVEL AGENTS 53 BILLION UP 9 FROM 1991 AND MORE THAN 300 SINCE 1978 ACCORDING TO AIRLINE REPORTING CORP WHICH RECORDS AND REMITS ALL TRAVELAGENCY TICKET SALES ONCE A SMALL ITEM ON AIRLINE ACCOUNTING SHEETS COMMISSIONS ARE NOW THE AIRLINE INDUSTRY'S THIRDLARGEST EXPENSE BEHIND ONLY LABOR AND FUEL PART OF THOSE RISING COMMISSION PAYMENTS OF COURSE STEM FROM INCREASED TRAVEL BUT TRAVELAGENCY COMMISSIONS ROSE TWICE AS FAST IN PERCENTAGE TERMS LAST YEAR AS AIRLINE REVENUES DID THE REASON COMMISSION RATES KEEP CREEPING UP THEY AVERAGED 111 IN 1992 COMPARED WITH 108 IN 1991 AND 101 IN 1985 WHAT'S MORE LARGE TRAVEL AGENCIES RECEIVE SOCALLED OVERRIDE PAYMENTS FROM AIRLINES IF THEY SELL CERTAIN QUOTAS OF TICKETS THESE OVERRIDES WHICH RUN INTO THE MILLIONS OF DOLLARS AND AREN'T EVEN REPORTED TO AIRLINE REPORTING CORP CAN BOOST TOTAL COMMISSIONS TO AS HIGH AS 15 ON DOMESTIC TICKETS AND 25 ON INTERNATIONAL AIRLINES AGREE TO SUCH OVERRIDES BECAUSE LARGE AGENCIES CONTROL TRAVEL ARRANGEMENTS FOR FORTUNE 500 COMPANIES AND BUSINESS TRAVELERS ARE CRUCIAL TO AIRLINE PROFITS AIRLINES THAT HAVE TRIED TO CONTROL EITHER OVERRIDES OR STANDARD COMMISSIONS HAVE BEEN INFORMALLY BOYCOTTED BY AGENTS INDUSTRY EXECUTIVES MAINTAIN IN THE MID80S UNITED AIRLINES TRIED TO SET A DOLLAR CAP ON COMMISSIONS ALL I CAN TELL YOU IS IT WASN'T WELL RECEIVED SAYS A SPOKESMAN FOR THE UAL INC UNIT EVEN CARRIERS THAT SIMPLY TRY TO OFFER UNUSUALLY LOW FARES THUS REDUCING AGENCY COMMISSIONS HAVE BEEN HURT BY AGENTS THE MOST ALARMING EXAMPLE PEOPLEEXPRESS WHICH AIRLINE OFFICIALS SAY COLLAPSED IN PART BECAUSE AGENTS STEERED BUSINESS TRAVELERS AWAY FROM IT IF AN AIRLINE EVEN TALKS ABOUT LOWERING COMMISSIONS THE AGENTS SCREAM BLOODY MURDER AND STEER THEIR BUSINESS ELSEWHERE SAYS TOM PARSONS EDITOR OF BEST FARES A TEXASBASED MAGAZINE THAT LISTS DISCOUNT FARES THEY CAN DO IT JUST BY NOT MENTIONING ONE AIRLINE AND JOHN Q PUBLIC WOULD NEVER KNOW TRAVEL AGENTS INSIST THEY DON'T BOYCOTT AIRLINES OH GOSH WE AREN'T THAT ORGANIZED SAYS EARLENE CAUSEY PRESIDENT OF THE AMERICAN SOCIETY OF TRAVEL AGENTS IN WASHINGTON SHE ALSO CONTENDS THAT WITH SO MANY AGENTS GETTING INTO THE BUSINESS MOST TRAVEL AGENTS ACTUALLY DON'T MAKE MUCH MONEY EVEN THE LARGEST AGENCIES THAT RECEIVE THE HIGHEST COMMISSIONS SAY THE COST OF RUNNING THEIR OPERATIONS CAN ALMOST OUTSTRIP COMMISSIONS WE'RE PROFITABLE SAYS ROGER BALLOU PRESIDENT OF THE TRAVELSERVICES GROUP FOR AMERICAN EXPRESS CO BUT IT'S NOT LIKE WE'RE KEEPING ANYTHING CLOSE TO OUR ENTIRE COMMISSIONS AMERICAN EXPRESS DOESN'T REPORT NET FIGURES FOR ITS TRAVELAGENCY BUSINESS WHICH IS AMONG THE LARGEST IN THE WORLD MOST OTHER AGENCIES ARE PRIVATELY OWNED THE AMERICAN SOCIETY OF TRAVEL AGENTS ESTIMATES THAT ABOUT HALF OF ALL AGENCIES WEREN'T PROFITABLE IN 1992 BUT THE GROUP DOESN'T KEEP ACTUAL PROFIT DATA HOTELS MAY SOON FEEL THE FINANCIAL SQUEEZE FROM TRAVEL AGENTS TOO BECAUSE TRAVEL AGENTS BOOK ONLY 30 OF ALL HOTEL RESERVATIONS MANY HOTELS HAVEN'T BOTHERED IN THE PAST TO PAY COMMISSIONS BUT IN THE PAST YEAR OR TWO MANY TRAVEL AGENTS HAVE UNITED AND PUSHED MANY HOTEL CHAINS TO COUGH UP 10 COMMISSIONS THE AMERICAN SOCIETY OF TRAVEL AGENTS FOR EXAMPLE NOW HAS A DEPARTMENT TO HELP AGENTS COLLECT BACK COMMISSIONS FROM HOTELS ALTHOUGH MANY HOTELS HAVE BEGUN PAYING THOSE COMMISSIONS SOME HOTELINDUSTRY EXPERTS COMPLAIN THAT 10 IS TOO HIGH THEY SAY AGENTS DON'T AFFECT TRAVELERS' DECISIONS ON WHERE TO STAY AS MUCH AS THEY INFLUENCE WHICH AIRLINES CUSTOMERS SHOULD FLY PLUS EXPERTS SAY THE HOTEL INDUSTRY LOST 1 BILLION LAST YEAR AND CAN ILL AFFORD MORE EXPENSES YOU CAN UNDERSTAND THE AGENTS WANTING THEIR COMMISSIONS SAYS CHEKITAN DEV AN ASSISTANT PROFESSOR AT CORNELL UNIVERSITY'S HOTEL SCHOOL BUT THE ONLY WAY HOTELS CAN PAY FOR THIS IS WITH HIGHER RATES SEE RELATED LETTERS LETTERS TO THE EDITOR THE TRAVEL AGENT ALWAYS A BARGAIN WSJ MARCH 22 1993 9302230051 9303230011 930222 NONPROFIT GROUPS MAY FACE HIGHER RATES AS FUNDING CUT LOOMS FOR POSTAL SERVICE BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US POSTAL SERVICE IS FACING A LIKELY CUT IN ITS FUNDING FROM CONGRESS A MOVE THAT MAY FORCE THE AGENCY TO BOOST MAILING RATES FOR NONPROFIT ORGANIZATIONS STAFFERS AT THE POSTAL SERVICE HAVE BEGUN PLANNING OPTIONS FOR HOW TO MAKE UP AN EXPECTED 1 BILLION SHORTFALL FOR THE YEAR ENDING SEPT 30 ONE OF THE POSSIBILITIES IS TO LIFT RATES ON THE MAIL OF NONPROFIT ORGANIZATIONS BY TWO TO FOUR CENTS PER PIECE BEGINNING IN OCTOBER IN THE PAST THREE YEARS CONGRESS HAS CUT THE SUBSIDY PAYMENT FOR NONPROFIT RATES BY 515 MILLION AND OFFICIALS ESTIMATE THAT AN ADDITIONAL CUT OF 500 MILLION WILL COME THIS YEAR POSTMASTER GENERAL MARVIN RUNYON HINTED AT A POSSIBLE RATE INCREASE IN TESTIMONY BEFORE A HOUSE SUBCOMMITTEE THIS MONTH IF FUNDS ARE NOT AVAILABLE TO CONTINUE THE CURRENT SUBSIDIZED POSTAGE RATES THE MAILERS WHO USE THEM SHOULD PAY THE DIFFERENCE THROUGH PROPORTIONATE RATE INCREASES HE SAID BOB COHEN DIRECTOR OF PLANNING AT THE POSTAL RATE COMMISSION WHICH GRANTS FINAL APPROVAL FOR ALL POSTAL SERVICE RATE INCREASES SAID HIS OFFICE HAS BEEN LOOKING AT THE POSSIBILITY OF AN INCREASE AS HIGH AS TWO TO FOUR CENTS PER PIECE OF MAIL NONPROFIT MAILERS GENERALLY PAY 11 CENTS PER PIECE OF MAIL ROUGHLY HALF OF THE 18CENT COMMERCIAL THIRDCLASS BULK RATE JOHN CRUTCHER A POSTAL RATE COMMISSIONER SAID NEW SUBSIDY CUTS PROBABLY WOULD FORCE A 30 INCREASE IN RATES BUT HE SAID THE COMMISSION WOULD PREFER TO ELIMINATE THE NONPROFIT RATE ALTOGETHER A RATE INCREASE WHICH PROBABLY WOULD BE DECIDED IN LATE MARCH WOULD HIT A BROAD SPECTRUM OF NONPROFIT GROUPS INCLUDING CHARITABLE RELIGIOUS AND POLITICAL ORGANIZATIONS THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NATIONAL EASTER SEAL SOCIETY JAMES E WILLIAMS JR SAID THAT ELIMINATING THE DISCOUNT WOULD COST THE CHARITY ORGANIZATION 900000 A YEAR THUS STRIPPING PROGRAMS FOR THE DISABLED AND THE DISADVANTAGED IT MEANS THAT 2000 KIDS WOULDN'T BE ABLE TO GO TO SUMMER CAMP SAID MR WILLIAMS IT MEANS THAT WE WOULDN'T BE ABLE TO BUY 1800 WHEELCHAIRS MR WILLIAMS AND OFFICIALS FROM THE ALLIANCE OF NONPROFIT MAILERS PROPOSE SPREADING THE COST OF THE SUBSIDY AMONG COMMERCIAL MAILERS A MOVE THAT THEY SAY WOULD BE SOCIALLY RESPONSIBLE AND RELATIVELY PAINLESS BUT COMMERCIAL MAILERS DISAGREE THEY CLAIM THAT FOR MANY COMPANIES HAVING TO PAY THE SUBSIDY COULD MEAN THE DIFFERENCE BETWEEN MAKING MONEY AND LOSING IT IT WOULD HURT THE SMALL MAILERS MOST BUT IT WOULD HURT EVERYBODY SAID ARTHUR SACKLER THE MANAGING DIRECTOR OF THE MAILERS COUNCIL AND A VICE PRESIDENT FOR TIME WARNER INC SEE RELATED LETTER LETTERS TO THE EDITOR NONPROFIT MAILERS FACE DEVASTATING POSTAL RISE WSJ MARCH 22 1993 9302220020 9303220188 930322 LAW BUSINESS OF MEDIATING CAN BRING IN BIG MONEY BY ELLEN JOAN POLLOCK LEGAL ENTREPRENEURS ARE BETTING THAT MEDIATION IS GOING TO BE BIG BUSINESS AND INVESTORS ARE BEGINNING TO TAKE NOTICE FOR THE LEGAL PROFESSION MORE FAMILIAR WITH PARTNERSHIPS THAT PRACTICE TRADITIONAL LAW THE BUSINESS OF MEDIATION IS UNCHARTED TERRITORY AND IT HAS BEEN A SOMETIMES BUMPY ROAD TOWARD PROFITABILITY FOR THE FIRMS THAT HAVE EMERGED AS NATIONAL CONTENDERS ONE OF THE OLDEST FIRMS JUDICIAL ARBITRATION & MEDIATION SERVICES INC OR JAMS WAS FOUNDED BY FORMER CALIFORNIA STATE COURT JUDGE H WARREN KNIGHT IN 1979 WITH 20 OFFICES AND ABOUT 25 MILLION IN REVENUES IN 1992 JAMS IS THE MOST SUCCESSFUL OF THE PRIVATE FIRMS THAT HAVE TAKEN ON THE COURTS IT IS THE ONLY ONE OF THE MAJOR FIRMS THAT EXCLUSIVELY USES FORMER JUDGES CURRENTLY MORE THAN 200 OF THEM AS MEDIATORS LIKE ITS COMPETITORS JAMS IS ON AN EXPANSION KICK BASED IN ORANGE CALIF THE FIRM GOT A 15 MILLION INFUSION OF CAPITAL IN 1990 WHEN EM WARBURG PINCUS & CO TOOK A STAKE IN IT THE GOAL ACCORDING TO THE PRESIDENT OF JAMS JOHN P UNROE IS TO TAKE THE COMPANY PUBLIC PERHAPS AS EARLY AS LATE NEXT YEAR JAMS WHICH OPENED OFFICES IN NEW YORK AND ATLANTA IN 1992 IS NOW PLOTTING MOVES INTO THE MIDWEST JAMS'S CHIEF COMPETITOR FOR COMPLEX CASES FROM BIG COMPANIES IS ENDISPUTE INC FOUNDED IN 1982 BY JONATHAN MARKS A WASHINGTON DC LAWYER AND ERIC GREEN A LAW PROFESSOR AT BOSTON UNIVERSITY ENDISPUTE RAISED 3 MILLION IN VENTURECAPITAL MONEY FROM MASSEY BURCH INVESTMENT GROUP INC AND POINT VENTURE PARTNERS INC LAST YEAR IT USED THE MONEY TO OPEN A SAN FRANCISCO OFFICE AND TO EXPAND IN NEW YORK AND OTHER CITIES UNTIL ABOUT 10 YEARS AGO NOBODY THOUGHT THAT THERE WAS BIG MONEY IN MEDIATION TRADITIONALLY THE NONPROFIT AMERICAN ARBITRATION ASSOCIATION FOUNDED IN 1926 WAS THE DOMINANT FORCE IN THE WORLD OF LITIGATION ALTERNATIVES THE AAA WHICH SPECIALIZES IN BINDING ARBITRATION IN WHICH ONE PARTY TYPICALLY EMERGES THE VICTOR IS NOW BEGINNING TO STEER ITS MEMBERS TOWARD MEDIATION WHICH IS IN VOGUE WITH COMPANIES LOOKING FOR COMPROMISE SOLUTIONS TO THEIR PROBLEMS TURNING MEDIATION AND ARBITRATION INTO A BUSINESS HAS AT TIMES BEEN A ROCKY PROPOSITION EVEN FOR THE MARKET LEADERS JUDICATE INC WAS FOUNDED IN 1983 WENT PUBLIC IN 1985 AND HAS ENDURED THE OUSTER OF ITS FOUNDER AS PRESIDENT AND A RECENT RESTRUCTURING OF ITS BOARD JUDICATE'S STOCK WHICH IS TRADED OVER THE COUNTER TYPICALLY HOVERS BETWEEN 1 AND 2 A SHARE THE LAKE SUCCESS NY COMPANY HAD REVENUES OF 4 MILLION FOR THE FIRST THREE QUARTERS OF 1992 BUT HAS YET TO HAVE A PROFITABLE QUARTER ACCORDING TO ITS CHAIRMAN VICTOR WANG JAMS AND ENDISPUTE WHICH DOMINATE THE WEST AND EAST COASTS RESPECTIVELY ALSO HAVE EXPERIENCED BUSINESS SETBACKS JAMS LOST A PART OF ITS SAN FRANCISCO OPERATION TO ENDISPUTE LAST YEAR ENDISPUTE OPENED AND CLOSED A LOS ANGELES OFFICE EARLY ON AND MADE A BRIEF FORAY INTO THE CONSULTING BUSINESS THE TWO FIRMS HAVE TWICE FLIRTED WITH A MERGER AND HAVE NOW SETTLED INTO A COMPETITION FOR JUDGES BUSINESS AND TERRITORY RECRUITING JUDGES IS KEY TO GENERATING BUSINESS BECAUSE COMPANIES TEND TO GRAVITATE TO FACES THEY HAVE SEEN ON THE BENCH IN THE LAST YEAR JAMS AND ENDISPUTE HAVE ACTIVELY COMPETED FOR JUDGES READY TO MAKE CAREER CHANGES OR TO RETIRE BOTH FIRMS FOR INSTANCE TRIED TO RECRUIT NEW YORK CITY DEPUTY MAYOR MILTON MOLLEN A FORMER APPELLATE JUDGE AND STATE SUPREME COURT JUSTICE MICHAEL J DONTZIN THE TWO FORMER JUDGES WHO ARE FRIENDS WERE KNOWN WHILE ON THE BENCH FOR THEIR BUSINESS ACUMEN AND ABILITY TO CONVINCE PARTIES TO SETTLE MR MOLLEN ENDED UP AT JAMS AND MR DONTZIN AT ENDISPUTE INITIALLY THE SERVICE WAS SOLD BECAUSE OF THE JUDGES SAYS MR UNROE OF JAMS WHO SPENT MUCH OF HIS CAREER AS A SALES AND MARKETING VICE PRESIDENT AT XEROX CORP WHEN THEY RETIRED THEY BROUGHT WITH THEM AN OUTSTANDING REPUTATION THE JUDGES REALLY WERE THE DRAW THAT BROUGHT IN THE BUSINESS YOU DIDN'T REALLY DO ANY MARKETING OF ANYTHING THAT HAS CHANGED ENDISPUTE FOR EXAMPLE HAS RECENTLY HIRED SALES PERSONNEL FOR FIVE OF ITS OFFICES WE RECOGNIZED THAT IF WE WERE GOING TO GROW WE NEEDED TO ADD REAL BUSINESS AND MARKETING EXPERTISE SAYS MR MARKS THE FIRM'S PRESIDENT WE'RE BEGINNING TO FOCUS MUCH MORE SYSTEMATICALLY ON TAKING THE HUGE AMOUNT OF KNOWLEDGE WE HAVE AND TRANSLATING IT INTO PRODUCT ALL OF THE NATIONAL MEDIATION FIRMS HAVE BENEFITED FROM THE FRUSTRATION OF INSURANCE COMPANIES CONTENDING WITH VOLUMINOUS LITIGATION STEMMING FROM CLAIMS MANY OF THE MAJOR INSURERS INCLUDING STATE FARM MUTUAL AUTOMOBILE INSURANCE CO CIGNA CORP AND RELIANCE NATIONAL INSURANCE CO NOW ROUTINELY CALL ON MEDIATION FIRMS AMERICAN INTERNATIONAL GROUP INC HAS CALLED ON JUDICATE AND SEATTLEBASED US ARBITRATION & MEDIATION INC TO SETTLE POLICY DISPUTES ON A VOLUME BASIS US ARBITRATION HAS 45 OFFICES NATIONWIDE FOLLOWING THE INSURERS' LEAD HAS BEEN THE GENERAL BUSINESS SECTOR SAYS MICHAEL GILLIE FOUNDER OF US ARBITRATION THERE HAVE BEEN A LOT OF COMPANIES WHO WANT TO USE ADR BUT THEY HAVEN'T ACTUALLY USED IT BUT THAT IS CHANGING 9303220187 930322 SHORT INTEREST ON BIG BOARD INCREASES 35 SHARES OF DISNEY CHRYSLER WERE ON TOP OF LIST IN MONTH TO MIDMARCH BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ON THE NEW YORK STOCK EXCHANGE ROSE 35 IN THE RECENT TRADING MONTH TO MIDMARCH CLIMBING CLOSER TO THE BILLIONSHARE MARK IT SURPASSED THREE MONTHS AGO THE EXCHANGE'S MONTHLY SHORT INTEREST TOTAL REACHED A RECORD 101 BILLION SHARES AT MIDDECEMBER A MONTH LATER THE TOTAL DECLINED TO 931 MILLION BUT HAS BEEN INCREASING AGAIN THE MONTHLY SHORT INTEREST TOTAL ON THE BIG BOARD HAS EXCEEDED 900 MILLION SHARES SINCE LAST AUGUST SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ROSE 14 TO MORE THAN 73 MILLION SHARES DESPITE THE HISTORIC LEVELS OF RECENT MONTHS SHORT INTEREST HAS BECOME DIFFICULT TO USE AS A TRUE SIGN OF INVESTOR SENTIMENT THAT'S BECAUSE MUCH OF IT IS ATTRIBUTABLE TO PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS FOR INSTANCE SEVERAL COMPANIES WITH RECENT LARGE SHORT INTEREST HAVE BEEN THE TARGETS OF MERGERRELATED ARBITRAGE THE COMPANIES HAD STOCKSWAP ACQUISITIONS OF OTHER COMPANIES PENDING ARBITRAGERS IN SUCH SITUATIONS SELL SHORT THE STOCK OF THE ACQUIRER AND BUY UP SHARES OF THE COMPANY TO BE ACQUIRED THEIR AIM IS TO PROFIT FROM SMALL SPREADS IN THE MARKET VALUE OF THE STOCKS FROM THE STATED VALUATION OF THE MERGER PRIOR TO THE MERGER'S COMPLETION AS MERGERS ARE COMPLETED ARBITRAGERS BUY BACK SHARES OF THE ACQUIRING COMPANIES TO COVER THEIR SHORT POSITIONS SPRINT CORP WHICH HAD THE HIGHEST SHORT POSITION AT MIDFEBRUARY WITH NEARLY 162 MILLION SHARES DROPPED TO ABOUT 63 MILLION SHARES IT RECENTLY COMPLETED ITS STOCKSWAP ACQUISITION OF CENTEL CORP AND FIRST UNION CORP'S SHORT INTEREST DROPPED TO 18 MILLION SHARES FROM FIVE MILLION IT RECENTLY COMPLETED A STOCKSWAP PURCHASE OF DOMINION BANKSHARES THE TWO LARGEST INCREASES IN SHORT INTEREST WERE LARGELY ATTRIBUTABLE TO STOCK SPLITS WALMART STORES INC SHORT INTEREST WAS 127 MILLION SHARES UP 49 MILLION SHARES AMERICAN BARRICK RESOURCES CORP SHORT INTEREST ROSE TO 78 MILLION SHARES FROM 31 MILLION BOTH COMPANIES RECENTLY SPLIT THEIR STOCKS 2FOR1 WALT DISNEY CO HAD THE HIGHEST SHORT INTEREST 153 MILLION SHARES DOWN MARGINALLY FROM THE MONTH BEFORE CHRYSLER CORP WITH THE SECONDHIGHEST TOTAL OF 128 MILLION SHARES WAS UP FROM 112 MILLION NEW YORK EXCHANGE SHORT INTEREST ROSE AT THE MARCH 15 SETTLEMENT DATE TO 993592865 SHARES FROM 959825122 AT MIDFEBRUARY ON THE AMEX SHORT INTEREST ROSE TO 73268580 SHARES FROM AN ADJUSTED 72243749 THE MONTH INCLUDED THE 20 TRADING DAYS THROUGH MARCH 8 AT MIDMARCH 1992 SHORT INTEREST VOLUME WAS 691075613 SHARES ON THE BIG BOARD AND 59501892 ON THE AMEX TRADERS WHO SELL SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS ALTHOUGH A SUBSTANTIAL SHORT POSITION REFLECTS HEAVY SPECULATION THAT A STOCK'S PRICE WILL DECLINE SOME INVESTORS CONSIDER AN INCREASE IN SHORT INTEREST BULLISH BECAUSE THE BORROWED SHARES EVENTUALLY MUST BE BOUGHT BACK FLUCTUATION IN SHORT INTEREST OF CERTAIN STOCKS ALSO MAY BE CAUSED PARTLY BY ARBITRAGING THE FIGURES OCCASIONALLY INCLUDE INCOMPLETE TRANSACTIONS IN RESTRICTED STOCK THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO ROSE TO 37 FROM 35 FOR THE MIDFEBRUARY MONTH THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY NEW YORK EXCHANGE VOLUME FOR THE 20 TRADING DAYS WAS 268270500 SHARES SOME ANALYSTS SUGGEST HOWEVER THAT THE RATIO HAS WEAKENED IN VALUE AS AN INDICATOR BECAUSE OPTIONS AND OTHER PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 150000 SHARES EXISTED AT MIDMARCH OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDFEBRUARY SEE ACCOMPANYING TABLES WSJ MARCH 22 1993 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 9303220186 930322 WHO'S NEWS IMMUNOMEDICS INC IMMUNOMEDICS INC MORRIS PLAINS NJ RICHARD C WILLIAMS 49 YEARS OLD WAS ELECTED TO THE BOARD INCREASING ITS SIZE TO SIX MR WILLIAMS IS FOUNDER OF CONNERTHEOLE LTD A FINANCIAL AND STRATEGIC ADVISORY FIRM SERVING THE HEALTHCARE AND PHARMACEUTICAL INDUSTRIES IMMUNOMEDICS IS A PRODUCER OF BIOPHARMACEUTICALS BASED ON MONOCLONAL ANTIBODIES 9303220185 930322 WHO'S NEWS PRICE WATERHOUSE PRICE WATERHOUSE NEW YORK GARY R CESNIK 41 YEARS OLD WAS NAMED NATIONAL TAX DIRECTOR OF THE FIRM'S RETAILING SERVICES GROUP WHICH PROVIDES ACCOUNTING AND CONSULTING SERVICES FOR RETAILING ORGANIZATIONS INCLUDING AUDITS ACCOUNTING TAX ADVISEMENT AND MANAGEMENT CONSULTING 9303220184 930322 WHO'S NEWS DEFIANCE INC DEFIANCE INC CLEVELAND HECTOR R ORTINO 50 YEARS OLD SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF FERRO CORP CLEVELAND WAS NAMED A DIRECTOR INCREASING THE BOARD TO EIGHT MEMBERS DEFIANCE IS A SUPPLIER OF METAL AND PLASTIC PARTS AND ENGINEERING AND DESIGN SERVICES TO THE TRANSPORTATION INDUSTRY 9303220183 930322 MARKETING & MEDIA PEARLSTINE SETS UP PARTNERSHIP TO INVEST IN MEDIA CONCERNS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NORMAN PEARLSTINE FORMER EXECUTIVE EDITOR OF THE WALL STREET JOURNAL HAS FORMED A PARTNERSHIP WITH PARAMOUNT COMMUNICATIONS INC QVC NETWORK INC AND INVESTOR RICHARD E RAINWATER TO INVEST IN MEDIA AND COMMUNICATIONS COMPANIES THE LIMITED PARTNERSHIP FRIDAY HOLDINGS LP IS LOOKING TO ACQUIRE ESTABLISH INVEST IN AND OPERATE MEDIA AND COMMUNICATIONS BUSINESSES MR PEARLSTINE SAID FRIDAY HOLDINGS WILL CONSIDER INVESTMENTS DOMESTICALLY AND ABROAD IN BOTH TRADITIONAL PRINT MEDIA PROPERTIES AND DEVELOPING MARKETS SUCH AS INTERACTIVE MEDIA MR PEARLSTINE 50 YEARS OLD WILL SERVE AS THE FIRM'S GENERAL PARTNER THE LIMITED PARTNERS ARE PARAMOUNT WITH STAKES IN ENTERTAINMENT AND PUBLISHING QVC THE CABLE NETWORK WHOSE CHIEF EXECUTIVE IS FORMER FOX INC CHIEF BARRY DILLER AND MR RAINWATER PRESIDENT OF RAINWATER INC THE FORT WORTH TEXAS PRIVATE INVESTMENT FIRM MR RAINWATER WAS FORMERLY ASSOCIATED WITH THE BASS FAMILY THE PARTNERSHIP WAS NAMED AFTER AUTHOR NANCY FRIDAY MR PEARLSTINE'S WIFE AND A MINORITY INVESTOR IN MR RAINWATER'S SHARE BESIDES MANAGING THE PARTNERSHIP MR PEARLSTINE WILL CONTINUE TO SERVE AS AN EDITORIAL CONSULTANT TO SMARTMONEY THE PERSONAL FINANCE MAGAZINE PUBLISHED JOINTLY BY DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL AND HEARST CORP FRIDAY HOLDINGS PARTNERS WOULDN'T DISCUSS ANY PARTICULAR PROJECTS THEY ARE CONSIDERING MR PEARLSTINE SAID HE HAS ALREADY IDENTIFIED SEVERAL PROPERTIES TO BE CONSIDERED BY THE PARTNERSHIP BUT THAT NO ACTIVE NEGOTIATIONS ARE UNDER WAY THE PARTNERS SAY THEY ARE WAITING TO SEE WHAT MR PEARLSTINE CAN TURN UP FOR INVESTMENT IN EFFECT WE ARE INVESTING IN HIM AND HIS VISIONS AND ABILITY SAID MARTIN DAVIS CHAIRMAN OF PARAMOUNT PARAMOUNT HAS MORE THAN 1 BILLION IN CASH AND HAS BEEN SEEKING INVESTMENTS THAT COMPLEMENT ITS EXISTING OPERATIONS QVC'S MR DILLER SAID THE AREAS HE'S INTERESTED IN ARE CERTAINLY THE AREAS THAT QVC HAS INTEREST IN QVC OPERATES A HOME SHOPPING NETWORK AND IS SEEKING TO EXPAND IN THAT MARKET AND OTHER INTERACTIVE PROGRAMMING BUSINESSES 9303220182 930322 OTC FOCUS FURNITURE FIRMS MAY BE REAPING COZY PROFITS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WAKE UP COUCH POTATOES WALL STREET SAYS IT'S TIME TO GET OFF THAT COUCH AND START BUYING STOCK IN IT FURNITURE STOCKS ARE IN FOR A NICE LITTLE RIDE HERE PREDICTS ROLAND GILLIS SENIOR PORTFOLIO MANAGER FOR KEYSTONE CUSTODIAN FUNDS IN BOSTON THE INVESTMENT CASE IS SIMPLE LOW INTEREST RATES HELP SELL FURNITURE AND WHILE MANY TYPES OF CYCLICAL STOCKS ARE POPULAR NOW THE NASDAQ FURNITURE GROUP OFFERS A WAY TO DABBLE IN THE SMALLSTOCK REALM AT THE SAME TIME THIS YEAR ON NASDAQ LADD FURNITURE IS UP 21 BASSETT FURNITURE 21 CHROMCRAFT REVINGTON 18 AND HAVERTY FURNITURE 16 THOSE GAINS COMPARE WITH A MEAGER 085 RISE IN THE NASDAQ COMPOSITE INDEX WHICH FRIDAY SLIPPED 469 OR 068 TO 68272 DON'T WORRY ABOUT MISSING THE GROUP'S INITIAL RUNUP ANALYSTS SAY THIS IS ONLY THE BEGINNING FOR SHARES OF FURNITURE RETAILERS AND MANUFACTURERS WHICH THEY FIGURE ARE TRADING AT 16 TO 19 TIMES ESTIMATED EARNINGS FOR THIS YEAR THIS INDUSTRY WAS SO BADLY BEATEN IN THE FIVEYEAR SLUMP THROUGH THE AUTUMN OF 1992 THAT IT HAS QUITE A WAY FURTHER TO RISE SAYS WALLACE EPPERSON AN ANALYST WITH MANN ARMISTEAD & EPPERSON FURNISHINGS DIGEST IN RICHMOND VA A PUBLICATION AFFILATED WITH THE REGIONAL BROKERAGE FIRM INTERSTATE/JOHNSON LANE THE BULLS TICK OFF SEVERAL REASONS THAT WHAT THE WORLD NEEDS NOW IS MORE CHAIRS AND TABLES START WITH THE FACT THAT WE'RE ALL GETTING OLDER THE BULK OF MONEY SPENT IN FURNITURE COMES FROM 35 TO 55YEAROLDS AND THERE IS BIG GROWTH IN AGING BABY BOOMERS SAYS JOHN BAUGH AN ANALYST WITH WHEAT FIRST BUTCHER & SINGER IN RICHMOND THE DEMOGRAPHICS ARE GOING TO BE VERY BULLISH FOR A WHILE THEN THERE ARE THOSE WONDERFULLY LOW RATES THE HORDES OF PEOPLE WHO REFINANCED MORTGAGES LAST YEAR NOW HAVE EXTRA CASH AND HAVING DECIDED TO STAY PUT IN THEIR HOMES MIGHT AS WELL REFURNISH NEW HOMEOWNERS ALSO HAVE RELATIVELY LOW MONTHLY PAYMENTS LEAVING MONEY LEFT OVER FOR FURNITURE AND THIS YEAR'S EVEN LOWER INTEREST RATES SHOULD SPUR A SECOND WAVE OF HOME REFINANCING AND BUYING FOR 1994 ALSO CHEAPER CREDIT MEANS CONSUMERS CAN MORE EASILY BORROW DIRECTLY FROM THE FURNITURE COMPANIES THERE HAS BEEN A LOT OF DEFERRED SPENDING IN THIS AREA SAYS MR EPPERSON CONSUMER CONFIDENCE IS BEING RESTORED WE JUST WENT THROUGH A LENGTHLY PERIOD OF NOT BUYING AND NOW A PERIOD OF BUYING SHOULD GO ON FOR QUITE A WHILE FURNITURE MAKERS' PROFITS ARE REBOUNDING LADD POSTED EARNINGS OF 24 CENTS A SHARE FOR LAST YEAR A LEAP FROM 1991'S LOSS OF 67 CENTS A SHARE THIS YEAR MR EPPERSON PROJECTS THE HIGH POINT NC COMPANY'S EARNINGS WILL ALMOST TRIPLE TO 70 CENTS A SHARE COMPARED WITH HIGHFLYING SOFTWARE STOCKS LADD LOOKS LIKE A BARGAIN LADD TRADES AT 18 TIMES THIS YEAR'S PROJECTED EARNINGS BASED ON FRIDAY'S PRICE OF 12 3/4 UNCHANGED LADD MAKES A WIDE VARIETY OF HOUSEHOLD BEDROOM AND DINING ROOM FURNITURE AS WELL AS CONTRACT FURNITURE FOR HOTELS DORMITORIES AND NURSING HOMES BUYERS OF CHROMCRAFT REVINGTON'S INITIAL PUBLIC OFFERING LAST APRIL HAVE MORE THAN DOUBLED THEIR INVESTMENT THE DELPHI IND COMPANY WENT PUBLIC AT 11 AND CLOSED UP 1/2 AT 23 1/2 FRIDAY THE COMPANY CONSISTS OF TWO FURNITURE MANUFACTURERS CHROMCRAFT DESIGNS AND MAKES CASUAL DINING FURNITURE AND COMMERCIAL FURNITURE AND PETERSREVINGTON PRODUCES TABLES BOOKCASES WALL UNITS AND ENTERTAINMENT CENTERS SHARES OF CHROMCRAFT ARE TRADING AT 16 TIMES 1993 ESTIMATED EARNINGS OF 145 SAYS WHEAT FIRST'S MR BAUGH CHROMCRAFT POSTED 1992 EARNINGS OF 107 A SHARE OR 115 PRO FORMA THAT IS ADJUSTED FOR THE APRIL OFFERING DEMOGRAPHICS AREN'T THE ONLY NUMBERS THAT LOOK GOOD MR BAUGH SAYS 1992 FURNITURE RETAIL SALES ROSE 65 AND COULD RISE 7 TO 9 THIS YEAR LAST YEAR WAS THE FIRST TIME IN SEVERAL YEARS THAT FURNITURE SALES OUTPACED ELECTRONIC RETAIL SALES WHICH GREW ONLY 41 MR BAUGH SAYS SO MANY PEOPLE ARE BUYING FURNITURE NOW THAT YOU CAN'T GO INTO A STORE AND WALK OUT WITH A SOFA YOU HAVE TO ORDER AND WAIT FOR IT THE DEMAND FOR FURNITURE STOCKS IS ALSO PUSHING THE SHARES HIGHER WE HAVE THREE NAMES IN THE PORTFOLIO AND I WISH WE COULD BUY MORE SAYS KEYSTONE'S MR GILLIS WHO OWNS LADD AND BASSETT MR GILLIS RECENTLY BOUGHT SHARES IN ETHAN ALLEN'S INITIAL PUBLIC OFFERING ETHAN ALLEN WHICH TRADES ON THE NEW YORK STOCK EXCHANGE HAS JUMPED TO 20 FROM ITS FEB 15 OFFERING PRICE OF 18 KIDDER PEABODY & CO WAS LEAD MANAGER OF THE OFFERING ANOTHER NEW FURNITURE STOCK WINSTON FURNITURE HASN'T PERFORMED AS WELL THE STOCK HAS EDGED UP 1/2 TO 16 1/2 FROM ITS LATEFEBRUARY OFFERING PRICE OF 16 THE BIRMINGHAM ALA COMPANY'S CASUAL OUTDOOR FURNITURE WASN'T POPULAR WITH INVESTORS DURING THE RECENT BAD EAST COAST STORM ANALYSTS SAY WHEAT FIRST BUTCHER & SINGER WAS LEAD MANAGER OF THE OFFERING AND INTERSTATE/JOHNSON LANE WAS A COMANAGER PAYLESS CASHWAYS WHICH HAS POPPED UP TO 14 FROM ITS INITIAL PRICE OF 12 3/4 EARLIER THIS MONTH HAS ALSO BENEFITED FROM THE TRENDS BUOYING FURNITURE STOCKS PAYLESS IS A SPECIALTY RETAILER OF BUILDING MATERIALS AND MANY REFINANCING HOMEOWNERS ARE EAGER TO BUILD ADDITIONS OR MAKE IMPROVEMENTS HAVERTY RECENTLY SAID IT PLANS AN OFFERING OF ADDITIONAL SHARES THE STOCK CLOSED UNCHANGED ON FRIDAY AT 20 ROBINSON HUMPHREY IS LEAD UNDERWRITER THERE ARE ALSO SEVERAL FURNITURE STOCKS ON THE BIG BOARD THAT HAVE CLIMBED THIS YEAR LAZBOY CHAIR CO JUMPED 13 CLOSING UP 3/8 TO 29 1/4 FRIDAY LEGGETT & PLATT ROSE 7 BUT ON FRIDAY EASED 1/8 TO 36 3/8 INTEREST RATES ARE THE KEY HOLDING THIS GROUP ON ITS NEW PERCH WE'RE EARLY IN THE CYCLE WE COULD HAVE AN EXTENDED GOOD PERIOD THAT MIRRORS THE EXTENDED BAD PERIOD SAYS MR BAUGH BUT INTEREST RATES ARE THE BIGGEST RISK IF THEY RISE THE STOCK MARKET WILL DROP AND THIS INTERESTSENSITIVE GROUP WILL FALL ESPECIALLY HARD THE NASDAQ COMPOSITE INDEX DROPPED 469 OR 068 TO 68272 MEDICALRELATED STOCKS WERE AMONG THE BIG LOSERS DECLINING ISSUES OUTNUMBERED ADVANCERS 1393 TO 1170 ON TOTAL VOLUME OF 2356 MILLION SHARES UP FROM THURSDAY'S 2317 MILLION THE MARKET LOOKS VERY TIRED SAID CHRIS MCLELLAN PARTNER IN CHARGE OF TRADING AT ROBERTSON STEPHENS & CO AMONG LOSERS IN THE HEALTH CARE GROUP WERE US HEALTHCARE A BLUE BELL PA HEALTH MAINTENANCE ORGANIZATION WHOSE SHARES FELL 1 3/4 TO 41 SCIMED LIFE SYSTEMS A MAPLE GROVE MINN MEDICAL DEVICE MAKER WHOSE STOCK LOST 1 3/4 TO 36 1/2 AND MEDCO CONTAINMENT SERVICES WHOSE SHARES DROPPED 1 1/2 TO 30 1/2 CHIRON SLID 2 3/8 TO 50 3/8 A FOOD AND DRUG ADMINISTRATION PANEL VOTED 7TO2 TO RECOMMEND APPROVAL OF CHIRON'S BETASERON FOR TREATING MULTIPLE SCLEROSIS FDA OFFICIALS SAID BETASERON APPEARS TO BE EFFECTIVE AT REDUCING THE FREQUENCY OF ADVERSE EVENTS OR EXACERBATIONS IN MULTIPLE SCLEROSIS PATIENTS BUT THE FDA OFFICIALS SAID THE DRUG APPARENTLY DOESN'T AFFECT THE FUNCTIONAL STATUS OF THOSE PATIENTS WHEN COMPARED WITH PLACEBO FIRST PACIFIC NETWORKS TUMBLED 5 1/4 TO 21 1/4 THE SUNNYVALE CALIF COMPANY WAS DESCRIBED IN FRIDAY'S HEARD ON THE STREET COLUMN AS A STOCK THAT WAS TO HAVE BEEN FEATURED IN A NOWCANCELED INFOMERCIAL ON CNBC THE STOCK ALSO FELL UNDER PRESSURE FROM A STATEMENT BY SOUTHERN CO THAT THE PREVIOUSLY REPORTED LETTER OF INTENT BY SOUTHERN TO BUY A 995 INTEREST IN FIRST PACIFIC WAS FAR FROM A DONE DEAL SHARES OF THE OTHER TWO COMPANIES SUPPOSED TO BE IN THE CNBC PROGRAM ALSO DROPPED SCICLONE PHARMACEUTICALS FELL 3/4 TO 16 AND EMBREX SLID 7/8 TO 8 1/8 HIGH PLAINS DROPPED 7/8 TO 10 1/4 THE ETHANOL COMPANY PRICED TWO MILLION ADDITIONAL SHARES FRIDAY AFTERNOON AT 10 1/4 HIGH PLAINS WAS AT 13 1/4 WHEN A RECENT HEARD ON THE STREET COLUMN TOLD HOW SOME INVESTORS WERE COMPLAINING THAT THE OFFERING WAS TOO LARGE AND WAS OVERLY DILUTIVE OF THEIR INTERESTS THE STOCK HAS PLUNGED FROM 16 3/4 SINCE PLANS FOR THE STOCK OFFERING WERE DISCLOSED FAHNESTOCK & CO WAS LEAD UNDERWRITER TOTAL US DOLLAR RETURNS TO AMERICAN INVESTORS IN GOVERNMENT BOND MARKETS ABROAD LAST YEAR AND FOR EARLY 1993 NOTE TOTAL RETURNS SHOWN ARE BOND PRICE CHANGES PLUS INTEREST INCOME TRANSLATED INTO US DOLLARS 9303220181 930322 WHO'S NEWS COMPAQ SAYS DOUGLAS JOHNS RESIGNED POST BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP SAID ITS TOP PERSONAL COMPUTER EXECUTIVE H DOUGLAS JOHNS RESIGNED WITH PLANS TO RUN HIS OWN BUSINESS THE RESIGNATION OF MR JOHNS 44 YEARS OLD IS THE HIGHESTLEVEL DEPARTURE FROM COMPAQ SINCE THE FALL OF 1991 WHEN THE HOUSTON COMPANY'S BOARD TOSSED OUT COFOUNDER JOSEPH R ROD CANION AND WATCHED AS A HANDFUL OF OTHER TOP EXECUTIVES LEFT THE COMPANY BUT UNLIKE MR CANION WHO LEFT COMPAQ AMID PLUNGING EARNINGS AND A FALLING STOCK PRICE MR JOHNS'S DEPARTURE COMES AS COMPAQ'S BUSINESS IS BOOMING THE COMPANY'S SHARE OF THE US PERSONAL COMPUTER MARKET HAS DOUBLED SINCE MR JOHNS BECAME PRESIDENT OF THE PERSONAL COMPUTER DIVISION IN OCTOBER 1991 THE 34 NEW PRODUCTS INTRODUCED UNDER HIS TUTELAGE NOW ACCOUNT FOR ABOUT 98 OF COMPAQ'S TOTAL PERSONAL COMPUTER REVENUE THE COMPANY'S STOCK PRICE WHICH FELL TO LESS THAN 30 A SHARE AFTER MR CANION'S EXIT CLOSED AT 48125 DOWN 1625 IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE WHILE ANALYSTS GIVE MR JOHNS PARTIAL CREDIT FOR COMPAQ'S RECENT SUCCESS THEY SAY THAT MANAGEMENT OF THE COMPANY'S PERSONAL COMPUTER OPERATIONS IS WIDELY DISPERSED WITH ABOUT A HALF DOZEN EXECUTIVES IN KEY ROLES AS A RESULT THEY SAY MR JOHNS'S DEPARTURE LIKELY WILL HAVE LITTLE IMMEDIATE IMPACT ON COMPAQ'S DAILY OPERATIONS IN AN INTERVIEW MR JOHNS SAID HE IS LEAVING TO SPEND MORE TIME WITH HIS TWO CHILDREN AND TO BEGIN WORK ON A NEW BUSINESS THE FIRST THING I WANT TO DO MONDAY MORNING IS GET TO KNOW MY FAMILY SAID MR JOHNS WHOSE DUTIES WILL BE TAKEN OVER TEMPORARILY BY COMPAQ PRESIDENT ECKHARD PFEIFFER UNTIL A PERMANENT SUCCESSOR IS NAMED MR JOHNS DID NOT SAY WHETHER HE WANTED TO JOIN AN EXISTING COMPANY OR START UP HIS OWN FIRM NOR DID HE SAY WHETHER HE PLANNED TO STAY IN THE TECHNOLOGY BUSINESS ONCE MY HEAD GETS A LITTLE CLEARER THEN I'LL DECIDE HE SAID THOUGH ANALYSTS SAY THE LOWKEY MR JOHNS OFTEN WAS UPSTAGED AT INDUSTRY FORUMS BY OTHER COMPAQ EXECUTIVES PARTICULARLY SENIOR VICE PRESIDENT ROSS COOLEY THEY SAY THERE IS NO EVIDENCE THAT MR JOHNS WHO IS ALSO A SENIOR VICE PRESIDENT WAS OUSTED FROM HIS POST INDEED THEY POINT OUT THAT MR JOHNS'S DEPARTURE COMES TWO YEARS AFTER MICHAEL S SWAVELY ONCE AN HEIR APPARENT TO THE COMPANY'S TOP JOB LEFT COMPAQ TO SPEND MORE TIME RAISING HORSES ON HIS SOUTH TEXAS RANCH THERE'S AN AWFUL LOT OF PRESSURE ON THESE PEOPLE TO PERFORM SAID KEVIN A MCCARTHY A PERSONAL COMPUTER ANALYST AT MABON SECURITIES CORP IN NEW YORK THEY HAVE BEEN ON A TORRID PACE COMPAQ OFFICIALS SAY MR JOHNS'S RESIGNATION ISN'T RELATED TO THE DEPARTURE LAST MONTH OF DAVID BLACK THE HEAD OF THE COMPANY'S NETWORK PRINTER OPERATIONS ANALYSTS SAY SOME COMPAQ EXECUTIVES HAD GROWN DISAPPOINTED ABOUT THE PERFORMANCE OF THE COMPANY'S PAGEMARQ PRINTER LINE INTRODUCED LAST YEAR COMPAQ OFFICIALS DECLINED TO DISCUSS THE MATTER AND MR BLACK COULDN'T BE REACHED 9303220180 930322 WHO'S NEWS AETNA LIFE & CASUALTY CO AETNA LIFE & CASUALTY CO HARTFORD CONN SCOTT A STRIEGEL A SENIOR VICE PRESIDENT WAS NAMED TO HEAD THE NEWLY CREATED DEFINED CONTRIBUTION PLAN SERVICES BUSINESS UNIT WHICH DEVELOPS AND MARKETS DEFINED CONTRIBUTION PRODUCTS TO EMPLOYERS WITH MORE THAN 500 WORKERS PREVIOUSLY MR STRIEGEL 44 YEARS OLD HEADED AETNA'S HOMEOWNERS INSURANCE UNIT AETNA IS AN INSURANCE AND FINANCIAL SERVICES COMPANY 9303220179 930322 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN WILLIAM L MEDDAUGH 49 YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF GE SUPPLY THE ELECTRICAL EQUIPMENT DISTRIBUTION DIVISION OF THIS INDUSTRIAL AND ELECTRICAL EQUIPMENT BROADCASTING AND FINANCIAL SERVICES CONCERN MR MEDDAUGH WAS GENERAL MANAGER OF GE'S INDUSTRIAL AND POWER SYSTEMS SALES DIVISION SCHENECTADY NY HE SUCCEEDS DOUGLAS J WOODS 48 WHO THE COMPANY SAID IS ON A SPECIAL ASSIGNMENT GE SUPPLY DISTRIBUTES EQUIPMENT MADE BY GE AND OTHER MANUFACTURERS 9303220178 930322 WHEELINGPITTSBURGH STEEL PRICE WHEELING W VA WHEELINGPITTSBURGH STEEL CORP FOLLOWING LARGER DOMESTIC STEELMAKERS SAID IT WILL RAISE PRICES BY 20 PER NET TON EFFECTIVE JULY 4 THE INCREASE AFFECTS HOT ROLLED COLD ROLLED SHEET HOT DIPPED GALVANIZED SHEET AND GALVANIZED CULVERT SHEET 9303220177 930322 ITALIAN WHOLESALE SALES MILAN ITALY'S INDUSTRIAL WHOLESALE SALES INDEX ROSE A REAL OR INFLATIONADJUSTED 2 IN DECEMBER FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT SAID THE DECEMBER INCREASE COMPARED WITH A 09 RISE IN NOVEMBER 9303220176 930322 WHO'S NEWS ALOETTE COSMETICS INC ALOETTE COSMETICS INC WEST CHESTER PA JOHN H TEAFORD 46 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER HE SUCCEEDS ALBERT E EDWARDS 57 WHO RETIRED MR TEAFORD'S MOST RECENT POSITION WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MEDIA ARTS INTERNATIONAL LTD A SUBSIDIARY OF NATIONAL MEDIA CORP ALOETTE IS A MAKER MARKETER AND FRANCHISER OF SKINCARE PRODUCTS AND COSMETICS 9303220175 930322 SWISS WHOLESALE PRICE INDEX ZURICH SWITZERLAND'S WHOLESALE PRICE INDEX IN FEBRUARY ROSE 02 FROM A YEAR EARLIER BUT WAS UNCHANGED FROM JANUARY THE GOVERNMENT ANNOUNCED IN JANUARY THE INDEX HAD RISEN 01 MONTHTOMONTH AND 02 YEARTOYEAR IN FEBRUARY 1992 THE INDEX WAS UNCHANGED BOTH MONTHTOMONTH AND YEARTOYEAR 9303220174 930322 ITALIAN FIRMS' ORDERS MILAN THE INDEX THAT MEASURES THE AGGREGATE VALUE OF ORDERS TO ITALIAN INDUSTRY SLID 28 IN DECEMBER FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT SAID THE FALL IN DECEMBER COMPARED WITH A YEARONYEAR DROP OF 52 THE PREVIOUS MONTH 9303220173 930322 WHO'S NEWS ACCUHEALTH NAMES VEITH TO TAKE OVER LEPELSTAT'S POSITIONS NEW YORK ACCUHEALTH INC SAID EDWIN T VEITH WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING STANLEY LEPELSTAT WHO RESIGNED THOSE POSITIONS LAST WEDNESDAY A SPOKESMAN FOR THE PHARMACY AND HOME HEALTH CARE SERVICES COMPANY DECLINED TO EXPLAIN THE REASONS FOR MR LEPELSTAT'S RESIGNATION THE COMPANY ANNOUNCED IN LATE FEBRUARY THAT IT WAS UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION FOR POSSIBLE FINANCIAL IMPROPRIETIES FOLLOWING ITS OWN INVESTIGATION ACCUHEALTH SAID IN MARCH THAT BASED UPON A PRELIMINARY INQUIRY THE COMPANY BELIEVES THAT IT FACES MATERIAL LIABILITY FOR A FAILURE TO PAY SALES TAXES ON A PORTION OF ITS REVENUES AND TO PAY AND REMIT PAYROLL TAXES RELATING TO A PORTION OF EMPLOYEE COMPENSATION MR VEITH 61 YEARS OLD PREVIOUSLY WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MALLARD COACH A NAPPANCE IND MAKER OF MOTOR HOMES AND RECREATIONAL VEHICLES UNDER HIS AGREEMENT WITH ACCUHEALTH HE WILL EARN 150000 IN SALARY AND WILL HAVE SEVERANCE BENEFITS EQUAL TO ONE YEAR'S SALARY UNDER CERTAIN CIRCUMSTANCES IN ADDITION HE HAS OPTIONS TO PURCHASE 150000 COMMON SHARES SUBJECT TO APPROVAL OF CURRENT SHAREHOLDERS THE COMPANY SAID HE WILL BE PAID A CERTAIN AMOUNT OF CASH IF STOCK OPTIONS AREN'T APPROVED OR IF THE COMPANY IS SOLD ACCUHEALTH SAID MR LEPELSTAT 61 AND HIS WIFE SHEILA 57 WHO ALSO RESIGNED AS VICE PRESIDENT SECRETARY TREASURER AND A DIRECTOR ENTERED A VOTING TRUST AGREEMENT WITH MR VEITH COVERING THEIR 40 STAKE IN THE COMPANY OR ABOUT 622000 SHARES MR VEITH MAY VOTE THEIR SHARES ON ALL MATTERS INCLUDING ANY RECONSTITUTION OF THE BOARD OTHER THAN A SALE OF THE COMPANY OR THE SALE OF SUBSTANTIALLY ALL OF ITS ASSETS THE LEPELSTATS MAY WITHDRAW SHARES FROM THE TRUST UNDER CERTAIN CIRCUMSTANCES THE COMPANY SAID WITHOUT ELABORATING ACCUHEALTH'S SHARES HAVE NOT TRADED SINCE FEB 26 WHEN THEY CLOSED AT 475 UP 125 CENTS IN OVERTHECOUNTER TRADING 9303220172 930322 WHO'S NEWS RYAN BECK & CO RYAN BECK & CO WEST ORANGE NJ DAVID TENDLER 55 YEARS OLD WAS ELECTED TO THE BOARD OF THE REGIONAL INVESTMENT BANKING FIRM INCREASING THE BOARD'S SIZE TO SEVEN MR TENDLER IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TENDLER BERETZ ASSOCIATES LTD AN INTERNATIONAL CONSULTING FIRM IN NEW YORK 9303220171 930322 CONNECTICUT ENERGY SUBSIDIARY BRIDGEPORT CONN SOUTHERN CONNECTICUT GAS CO A UNIT OF CONNECTICUT ENERGY CORP FILED A REQUEST TO INCREASE ITS RATES BY 285 MILLION OR 14 THE COMPANY SAID THE RATE INCREASE IS BECAUSE OF HIGHER UNCOLLECTIBLES NEW NATIONAL ACCOUNTING STANDARDS AND INCREASED OPERATIONS MAINTENANCE AND CAPITAL EXPENSES SOUTHERN CONNECTICUT SAID THE NEW RATES WILL GO INTO EFFECT IN THE FALL IF APPROVED BY STATE REGULATORS 9303220170 930322 CANADIAN CONSUMER PRICES OTTAWA CANADA'S CONSUMER PRICE INDEX ROSE A SEASONALLY ADJUSTED 03 IN FEBRUARY FROM JANUARY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE FEBRUARY RISE FOLLOWED INCREASES OF 02 IN JANUARY AND 03 IN DECEMBER AND NOVEMBER 9303220169 930322 GLOBAL VIEW TAKING REFORM TO RUSSIA'S PEOPLE BY GEORGE MELLOAN BORIS YELTSIN'S DECISION TO ATTEMPT A RULE BY DECREE WAS INEVITABLE THE ONLY COURSE POSSIBLE TO PREVENT RUSSIA FROM SLIDING DEEPER INTO POLITICAL AND ECONOMIC CHAOS PRESIDENT CLINTON MUCH TO HIS CREDIT AND THAT OF HIS BRIEFERS SEEMINGLY UNDERSTOOD THAT IMPERATIVE AND GAVE IMMEDIATE SUPPORT TO RUSSIA'S ONLY DEMOCRATICALLY ELECTED LEADER MR YELTSIN KNOWS THAT IT IS SIMPLY TOO DANGEROUS FOR RUSSIA AND ITS NEIGHBORS TO ALLOW FORMER COMMUNIST BOZOS TO CONTINUE BLOCKING ECONOMIC AND POLITICAL REFORMS THUS KEEPING A VAST FEDERATION IN A STATE OF TURMOIL GIVEN THE POLITICAL CONTEXT OF MR YELTSIN'S ACTIONS IT IS RIDICULOUS TO SAY AS EVEN SOME AMERICAN PUNDITS JOIN MR YELTSIN'S FOES IN OPINING THAT HE IS VIOLATING SOMETHING THAT COULD LEGITIMATELY BE CALLED A CONSTITUTION HE IS IN FACT FIGHTING TO BRING RUSSIA A MODERN CONSTITUTION AND A TRUE RULE OF LAW BUT NOW THE HARD PART AND A DANGEROUS PERIOD FOR RUSSIA AND THE WORLD BEGINS YESTERDAY CHIEF SUPREME SOVIET BOZO RUSLAN KHASBULATOV AND HIS HENCHMEN CAME ROARING BACK TO MOSCOW LIKE ANGRY HORNETS TO RECONVENE WHAT PASSES FOR A PARLIAMENT THEY HAD BEEN EXULTANT EARLY THIS MONTH WHEN THEY VOTED TO STRIP MR YELTSIN OF HIS POWER TO ISSUE DECREES AND TO CANCEL AN EARLY APRIL REFERENDUM THAT MOST LIKELY WOULD HAVE GIVEN THE PRESIDENT A POPULAR VOTE OF CONFIDENCE YESTERDAY THE RETURNING SUPREMOS WERE BUZZING WITH CONDEMNATIONS OF THE PRESIDENT ISSUING INFLAMMATORY WARNINGS ABOUT CIVIL WAR AND THE LIKE THEY WERE JOINED BY SOME OTHER DIGNITARIES INCLUDING THE HEAD OF A CONSTITUTIONAL COURT THAT NOT LONG AGO GRANTED THE COMMUNIST PARTY NEW LIFE ALL THESE AUGUST FOLKS HOLD OFFICE UNDER AN OLD CONSTITUTION THAT WAS DESIGNED TO PERPETUATE A COMMUNIST POWER ELITE CONSIDERING HOW THEY CAME TO OFFICE THEIR COMPLAINTS HAVE LITTLE MORAL AUTHORITY WITH ANYONE WHO UNDERSTANDS RUSSIAN POLITICS THEY ARE MOSTLY A BUNCH OF FORMER COMMUNIST PARTY HACKS TRYING TO HANG ONTO THEIR JOBS MR YELTSIN HAS SIMPLY CHOSEN TO BYPASS RATHER THAN ATTEMPT TO UNSEAT THIS OLD POLITICAL ESTABLISHMENT ALTHOUGH RUSSIANS AREN'T VERY HAPPY WITH ANYONE IN GOVERNMENT IN THESE DIFFICULT TIMES HE STILL FAR OUTDISTANCES THE PARLIAMENT IN OPINION POLLS MORE TO THE POINT MR YELTSIN HAS A PROGRAM HIS OPPONENTS HAVE NOTHING OTHER THAN A LOT OF DEMAGOGIC RANTING ABOUT THE RIGHTS OF ETHNIC RUSSIANS IN OTHER FORMER SOVIET REPUBLICS AND A LOT OF NOSTALGIA ABOUT THE GOOD OLD DAYS WHEN RUSSIA'S COMMUNIST JAILERS PROVIDED EVERYONE WITH A DAILY RATION OF BREAD AND VODKA AND COMPLETE INSTRUCTIONS ON WHAT TO SAY AND THINK THE PRESIDENT SPELLED OUT HIS PROGRAM CLEARLY ON TELEVISION SATURDAY NIGHT HE PLANS TO DECREE FIRST AND FOREMOST A MECHANISM FOR ALLOWING RUSSIANS TO OWN LAND HE IS GOING DIRECTLY TO THE RUSSIAN PEOPLE AS A GOOD POLITICIAN SHOULD WITH SOMETHING THAT WILL BENEFIT THEM RATHER THAN THE POWERS THAT BE NO DOUBT IN PART BECAUSE OF NATURAL INSTINCTS THAT ASSOCIATE PROPERTY RIGHTS WITH POLITICAL FREEDOM AND PARTLY BECAUSE OF RESIDUAL MEMORIES OF THE BRUTAL LAND SEIZURES OF STALIN AND HIS THUGS THERE IS ENORMOUS PUBLIC SUPPORT IN RUSSIA FOR THE RIGHT TO OWN LAND MR YELTSIN ALSO PROMISED A PRESIDENTIAL DECREE FORMALIZING THE RIGHT TO OWN REAL PROPERTY THIS WILL HAVE THE ADDED MERIT OF HASTENING THE PRIVATIZATION OF BUSINESS ENABLING WOULDBE ENTREPRENEURS TO SET UP SHOP ON PROPERTY THAT THEY THEMSELVES WOULD OWN NONE OF THIS APPEALS MUCH TO HIS PARLIAMENTARY OPPONENTS WHILE THEY PAY LIP SERVICE TO OLD SLOGANS ABOUT COMMUNAL OWNERSHIP WHAT REALLY WORRIES THEM IS THE DANGER THAT MR YELTSIN WILL DENY THEM PRIVATE ACCESS TO VALUABLE ASSETS THEY HAVE BEEN INCREASINGLY CRITICAL OF LAST FALL'S PROGRAM THAT GAVE ALL RUSSIANS VOUCHERS EXCHANGEABLE FOR SHARES IN NEWLY PRIVATIZED COMPANIES THEY PREFER THAT THE COMPANIES BE GIVEN TO THE WORKERS MEANING THE APPARATCHIKS WHO RUN THEM DEPUTY PRIME MINISTER ANATOLY CHUBAIS WHO HAS BEEN PUSHING AHEAD VIGOROUSLY WITH PRIVATIZATION HAS BEEN UNDER HEAVY PARLIAMENTARY PRESSURE TO SLOW DOWN LEST HE SELL VALUABLE COMPANIES OUT FROM UNDER THE POWER ELITES WHO WOULD LIKE TO INHERIT THEM IN SHORT CLAIMS OF PARLIAMENTARY RIGHTS ARE UNDERLAID BY SOMETHING FAR MORE ELEMENTAL IN POLITICS A DESIRE FOR BOODLE NONETHELESS MR CHUBAIS MANAGED TO PRIVATIZE 46815 MOSTLY SMALL RUSSIAN FIRMS IN 1992 AND HE HAS NOW STARTED TO WORK RIDDING THE STATE OF SOME OF ITS LARGE COMPANIES THROUGH SALES OF SHARES TO VOUCHER HOLDERS SOME OF THE PRESIDENT'S OTHER PROPOSALS ARE LESS SPECIFIC HAVING TO DO WITH SOCIAL PROGRAMS FOR THE UNEMPLOYED AND OTHER ISSUES THAT WHILE POLITICALLY IMPORTANT WILL FACE DIFFICULTIES OF IMPLEMENTATION MOST IMPORTANT OF THESE IS A PROMISE TO STABILIZE THE RUBLE THROUGH STRICT CONTROL OVER THE RUBLE EMISSIONS THAT MEANS HE WILL HAVE TO WREST CONTROL OF THE CENTRAL BANK AWAY FROM THE PARLIAMENT WHICH HAS BEEN USING IT TO SHIP RUBLES TO RUSSIAN FACTORIES IN WHAT COULD BEST BE DESCRIBED AS A MASSIVE WELFARE PROGRAM FOR STATE INDUSTRIES THIS PROCESS IS TO BLAME FOR RUSSIA'S PLUNGE TOWARD HYPERINFLATION BUT MR YELTSIN MAY HAVE TO SEND SOMEONE INTO THE CENTRAL BANK TO TAKE PHYSICAL CONTROL AND SHUT DOWN THE PRINTING PRESSES FINALLY THERE IS THE MOST IMPORTANT MOVE OF ALL DIRECTLY DEFYING THE PARLIAMENTARY BAN ON A REFERENDUM MR YELTSIN PROPOSED TO TAKE HIS DEMAND FOR A NEW CONSTITUTION DIRECTLY TO THE PEOPLE WITH A PLEBISCITE ON APRIL 25 HE WILL ASK THE PEOPLE NOT ONLY TO ENDORSE A DRAFT CONSTITUTION BUT ALSO A DRAFT LAW FOR A NEW FEDERAL PARLIAMENT THEY WILL BE ASKED AS WELL TO GIVE MR YELTSIN AND HIS VICE PRESIDENT ALEXANDER RUTSKOI A VOTE OF CONFIDENCE OR POPULAR BACKING FOR THE PRESIDENCY UNTIL THE NEW CONSTITUTION AND A NEW POPULARLY ELECTED PARLIAMENT CAN BE BROUGHT INTO BEING IF HE SUCCEEDS IN THIS MANEUVER THE PRESENT PARLIAMENTS MAY FIND THEMSELVES COUGHING AND SPUTTERING ON THE SIDELINES WHILE MR YELTSIN AND RUSSIAN PEOPLE MOVE AHEAD WITH MAJOR REFORMS TO FIGHT ALL THIS THROUGH AGAINST THE REMNANTS OF A ONCE ALLPOWERFUL POLITICAL ESTABLISHMENT MR YELTSIN WILL NEED ALL THE BACKING HE CAN MUSTER THAT IS WHY IT WAS IMPORTANT FOR PRESIDENT CLINTON TO IMMEDIATELY ASSERT THE SUPPORT OF THE WESTERN CAMP PRESIDENT YELTSIN AND PRESIDENT CLINTON SEEM TO HAVE REACHED AN UNDERSTANDING THAT THERE CAN BE NO REAL ECONOMIC REFORM IN RUSSIA NO MATTER HOW MUCH MONEY THE WEST PUMPS IN UNTIL POLITICAL REFORM IS COMPLETE POLITICAL REFORM BEGAN IN AUGUST 1990 WHEN MR YELTSIN STOOD ATOP A TANK IN FRONT OF THE RUSSIAN WHITE HOUSE AND DEFIED COMMUNIST HARDLINERS THUS DESTROYING THE PARTY'S SUPREME POWER BUT HE HAS NOT BEEN ABLE TO DISPATCH ALL OF THOSE PEOPLE WHO THROUGH MIKHAIL GORBACHEV'S CAREFULLY RIGGED 1988 ELECTIONS WERE ABLE TO CLAIM LEGITIMACY AS MEMBERS OF ONE OF RUSSIA'S TWO PARLIAMENTARY BODIES MR GORBACHEV ARRANGED TO STACK THE 1033MEMBER CONGRESS OF PEOPLE'S DEPUTIES WITH PARTY APPOINTEES EVEN THOUGH MANY MEMBERS WERE POPULARLY ELECTED FROM THIS BODY WAS DRAWN THE ACTUAL SITTING PARLIAMENT THE 250MEMBER SUPREME SOVIET WHICH HAS BECOME THE MOST CONSTANT THORN IN MR YELTSIN'S SIDE SINCE IT DOES NOT ADJOURN FOR LONG PERIODS AS THE CONGRESS DOES BUT MR YELTSIN PREPARED THE GROUND WELL FOR HIS SATURDAY NIGHT SPEECH HE ACCEPTED BOTH THE CONGRESS AND THE SUPREME SOVIET AS TRUE PARLIAMENTS DESPITE THEIR DUBIOUS ANCESTRY AND TRIED TO WORK WITH THEM ATTEMPTING TO NURSE THEM ALONG TOWARD THE NEW CONSTITUTION HE WANTS AND RUSSIA SO BADLY NEEDS BUT HE WAS UP AGAINST ONE HARD FACT THAT DOOMED THIS EFFORT THE PARLIAMENTARIANS DIDN'T WANT TO LOSE THEIR JOBS AS MANY UNDOUBTEDLY WOULD IF THEY HAD TO SUBMIT TO A POPULAR VOTE BY COMPARISON WITH THE POVERTY OF RUSSIANS GENERALLY RUSSIAN PARLIAMENTARIANS LIVE EXTREMELY WELL WITH GOOD HOUSING GOOD PERQUISITES AND POSH OFFICES IN THE RUSSIAN WHITE HOUSE THE PARLIAMENTS HAVE DESTROYED THEIR OWN CREDIBILITY THROUGH THEIR OBSTRUCTIONISM IT IS NOT ONLY IN THE INTEREST OF THE RUSSIAN PEOPLE TO HELP MR YELTSIN CIRCUMVENT THE POWER OF THESE HOLDOVER BOZOS IT IS IN THE INTEREST OF THE WEST AS WELL AS MR CLINTON APPARENTLY UNDERSTANDS THEY ARE NOT ONLY BLOCKING REFORM BUT IN THEIR EFFORTS TO WIN POPULAR SUPPORT THEY ARE CAUSING TROUBLE BETWEEN RUSSIA AND HER NEIGHBORS BY STIRRING UP RUSSIAN NATIONALISM AND MAKING CLAIMS ON BEHALF OF THE 25 MILLION ETHNIC RUSSIANS WHO LIVE IN OTHER FORMER SOVIET REPUBLICS THIS IS A VERY DANGEROUS BUSINESS RUSSIA ALREADY HAS A LOWGRADE WAR GOING WITH GEORGIA OVER A DISPUTED TERRITORY CALLED ABKHAZIA ALTHOUGH IN THIS CASE RUSSIA APPEARS TO BE SUPPORTING MUSLIMS WHO ARE SEEKING AUTONOMY FROM GEORGIA IT IS A MATTER OF SOME INTEREST THAT ONE OF THE FIRST POLITICIANS TO COME OUT IN SUPPORT OF MR YELTSIN'S SATURDAY NIGHT DECREE WAS FORMER SOVIET FOREIGN MINISTER EDUARD SHEVARDNADZE NOW GEORGIA'S LEADER NO ONE WOULD KNOW BETTER THAN MR SHEVARDNADZE WHO IS REALLY RESPONSIBLE FOR PUSHING RUSSIA INTO CONFLICTS WITH ITS NEIGHBORS HIS SUPPORT FOR MR YELTSIN SUGGESTS HE FEELS MORE COMFORTABLE WITH PRESIDENTIAL RULE THAN WITH THE NATIONALISTIC PARLIAMENT A QUARREL BETWEEN RUSSIA AND TINY GEORGIA IS NOT SO SERIOUS BUT RUSSIAN NATIONALISM ALSO COULD PROVOKE A QUARREL WITH UKRAINE THAT COULD BECOME SERIOUS INDEED CONSIDERING THE FACT THAT BOTH HAVE LARGE ARMIES AND NUCLEAR WEAPONS THE WEST CAN'T DO MUCH DIRECTLY TO HELP MR YELTSIN IN THE STRUGGLE HE FACES BUT THE WESTERN INTELLIGENTSIA OWES IT TO THE RUSSIAN PRESIDENT TO TRY TO UNDERSTAND THE LEGITIMACY AND IMPORTANCE OF HIS CAUSE HE CAN BEST AID THAT CAUSE HIMSELF BY CONTINUING TO DO WHAT HE EMBARKED ON SATURDAY NIGHT TAKING HIS MESSAGE TO THE RUSSIAN PEOPLE IF THEY DON'T FOLLOW HIM THERE ISN'T MUCH HOPE FOR HIM BUT THEN NOT A LOT FOR THE FUTURE OF RUSSIA EITHER MR MELLOAN IS DEPUTY EDITOR INTERNATIONAL OF THE WALL STREET JOURNAL 9303220168 930322 INVESTOR TO RECEIVE 27 MILLION AWARD FROM PAINEWEBBER BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PAINEWEBBER GROUP INC SAID IT LOST THE BATTLE BUT WON THE WAR IN A HIGHSTAKES ARBITRATION CASE FILED BY A WEALTHY CLIENT THE BIG BROKERAGE FIRM MUST PAY 27 MILLION TO THE CLIENT AFTER A BROKERAGEACCOUNT DISPUTE RULED AN ARBITRATION PANEL OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IT WAS AMONG THE STIFFEST AWARDS GRANTED TO AN INDIVIDUAL IN AN ARBITRATION CASE BUT PAINEWEBBER CLAIMED A MORAL VICTORY THAT'S BECAUSE THE INVESTOR SOUGHT MORE THAN 10 MILLION IN DAMAGES FROM THE ARBITRATION PANEL AFTER SAYING HE HAD LOSSES OF 75 MILLION IN HIS ACCOUNT WE FEEL THAT THE PANEL RECOGNIZES THAT THE INVESTOR WAS VERY MUCH AWARE OF THE RISKS INVOLVED IN HIS INVESTMENT BECAUSE THE AWARD WAS JUST 25 OF WHAT WAS SOUGHT PAINEWEBBER SAID THAT'S NATURALLY NOT THE WAY THE PLAINTIFF'S LAWYER SEES IT MY CLIENT IS A BIG BOY AND HE HAS TO TAKE SOME OF THE BLAME BUT THIS IS A MAJOR VICTORY SAID STUART GOLDBERG THE LAWYER THE CASE WAS FILED IN 1991 BY DAVID CHERRY A DALLAS ENTREPRENEUR MR CHERRY ALLEGED THAT PAINEWEBBER GROSSLY UNDERSTATED THE DEGREE OF RISK ASSOCIATED WITH THE PURCHASE OF THE STOCK OF UNITED AIRLINES PARENT UAL CORP IN 1989 ACCORDING TO PAPERS FILED WITH ARBITRATORS MR CHERRY ALLEGED IN THE PAPERS THAT PAINEWEBBER'S RISKARBITRAGE DEPARTMENT WAS ISSUING BUY AND HOLD RECOMMENDATIONS TO CUSTOMERS INCLUDING HIMSELF WHILE THE MANAGERS OF THE PAINEWEBBER PROPRIETARY ACCOUNT AND THE ACCOUNTS OF SENIOR MANAGEMENT PERSONNEL WERE SELLING THEIR POSITIONS IN UAL MR CHERRY SAID HE LOST 75 MILLION OF HIS 15 MILLION UAL POSITION ON OCT 13 1989 WHEN UAL'S SHARES PLUNGED FOLLOWING THE BREAKDOWN OF TAKEOVER TALKS THE UAL DECLINE HELPED TRIGGER THE MINICRASH THAT DAY WHEN STOCKS PLUNGED 19058 POINTS PAINEWEBBER STRENUOUSLY DENIED THE ALLEGATIONS THE BROKERAGE FIRM SAID MR CHERRY MADE HIS OWN INVESTMENT DECISIONS AND UNDERSTOOD THE RISKS INVOLVED IN INVESTING IN TAKEOVER STOCKS MR CHERRY IS A VERY WEALTHY SOPHISTICATED INVESTOR WHO HAD PRIOR RISKARBITRAGE EXPERIENCE PAINEWEBBER SAID WE DO NOT BELIEVE THAT PAINEWEBBER DID ANYTHING IMPROPER PAINEWEBBER HAS SINCE SHUT ITS ARBITRAGE DEPARTMENT THE FIRM SAID IT WON'T APPEAL THE RULING 9303220167 930322 WHO'S NEWS PRIMERICA CORP PRIMERICA CORP NEW YORK JAMES B LOCKHART III FORMER EXECUTIVE DIRECTOR OF THE PENSION BENEFIT GUARANTY CORPORATION JOINED SMITH BARNEY HARRIS UPHAM & CO AS A MANAGING DIRECTOR IN ITS CORPORATE FINANCE GROUP SINCE 1989 MR LOCKHART HAS HEADED THE FEDERAL INSURANCE CORPORATION THAT COVERS MORE THAN 900 BILLION OF CORPORATE PENSION LIABILITIES HE JOINS SMITH BARNEY'S CORPORATE FINANCEINSURANCE GROUP SMITH BARNEY IS A UNIT OF PRIMERICA WHICH RECENTLY AGREED TO BUY THE BROKERAGE OPERATIONS OF AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS INC UNIT 9303220166 930322 INTERNATIONAL WORLD WIRE COMPILED BY LINDA D BOHRER THE POLISH GOVERNMENT WON'T ABANDON ITS MASS PRIVATIZATION PLAN A SPOKESMAN FOR PRIME MINISTER HANNA SUCHOCKA SAID AS THE SHOCK WEARS OFF FROM PARLIAMENT'S UNEXPECTED DEFEAT LAST THURSDAY OF THE GOVERNMENTSPONSORED PRIVATIZATION PROGRAM DETERMINATION IS GROWING TO REINTRODUCE THE BILL AS SOON AS POSSIBLE GOVERNMENT SOURCES HAVE SAID THE PLAN TO PUT HUNDREDS OF STATE ENTERPRISES IN PRIVATE HANDS COULD RETURN TO PARLIAMENT BY THE END OF APRIL PROGRESS ON MASS PRIVATIZATION IS ONE OF SEVERAL PERFORMANCE CRITERIA SET BY THE INTERNATIONAL MONETARY FUND FOR IMPLEMENTATION OF ITS RECENTLY SIGNED 665 MILLION AGREEMENT WITH POLAND TO SECURE PASSAGE OF A REINTRODUCED PRIVATIZATION PROGRAM THE RULING COALITION'S LIBERAL CENTER IS CONSIDERING ENLISTING SUPPORT OF PARTIES OUTSIDE THE COALITION THAT MAY REQUIRE CONCESSIONS TO THE PLAN SUCH AS REDUCING THE NUMBER OF COMPANIES TO BE INCLUDED POLAND AND RUSSIA AGREED TO BUILD A 2500MILE GAS PIPELINE CONNECTING THE TWO COUNTRIES AND GERMANY THE 10 BILLION PROJECT WOULD LINK THE YAMAL PENINSULA IN NORTHERN RUSSIA WITH FRANKFURTONODER IN EASTERN GERMANY THROUGH BELARUS AND POLAND SET TO BE COMPLETED IN 2010 THE PIPELINE WILL CARRY 67 BILLION CUBIC METERS OF GAS ANNUALLY OF WHICH POLAND WOULD RECEIVE 14 BILLION CUBIC METERS ASSEMBLY OF THE POLISH SECTION WILL BEGIN NEXT YEAR AT AN ESTIMATED COST OF 3 BILLION THE PIPELINE THERE WILL RUN THROUGH REGIONS OF HIGH UNEMPLOYMENT OFFERING JOBS TO BUILDERS AND STEEL INDUSTRY WORKERS EASTERN GERMAN INDUSTRY WILL SHED 19 OF ITS WORK FORCE IN 1993 ACCORDING TO A FORECAST BY THE IWH AN ECONOMIC RESEARCH INSTITUTE IF THE FORECAST BASED ON A SURVEY OF 300 BUSINESSES PROVES ACCURATE THE NUMBER OF JOBLESS IN EASTERN GERMANY WILL RISE BY ABOUT 150000 WITH THREEQUARTERS OF ALL COMPANIES CUTTING THEIR STAFFS ALREADY IN 1993 50 OF EASTERN GERMANY'S INDUSTRIAL CONCERNS HAVE SHED WORKERS IN 1992 90 OF EASTERN GERMAN INDUSTRIAL GROUPS CUT THEIR WORK FORCES AT LEAST FOUR GERMAN INDUSTRIALISTS WERE IN CUSTODY SATURDAY ON CHARGES THEIR COMPANIES ILLEGALLY HELPED IRAQ BUILD ITS WEAPONS PROGRAM BEFORE THE GULF WAR THE GERMAN NEWSPAPER BILD AM SONNTAG OF HAMBURG REPORTED THE ACCUSED COMPANIES SUPPLIED BAGHDAD WITH KEY PARTS TO BUILD SCUD ROCKET DETONATORS AND HELPED IRAQ BUILD A PLANT TO PRODUCE ARTILLERY SHELLS PROSECUTORS ALLEGED GREECE'S GOVERNMENT LAUNCHED A SWEEPING URBAN RENEWAL PLAN TO MAKE THE CAPITAL'S CENTER AN ARCHEOLOGICAL PARK WITH WALKWAYS LINKING MONUMENTS THAT WERE THE GLORY OF ANCIENT ATHENS THE GOVERNMENT SAID IT WILL PUMP 550 MILLION INTO THE VAST PUBLIC WORKS PROJECT OVER FIVE YEARS GIVING A LONG OVERDUE FACELIFT TO THE EUROPEAN COMMUNITY'S MOST POLLUTED AND RUNDOWN CAPITAL AT THE HEART OF THE PROJECT WHICH INCLUDES NUMEROUS TUNNELS AND BRIDGES ACROSS THE CENTER OF THE CITY IS A NEW 25MILE PEDESTRIAN ROADWAY HONG KONG RESIDENTS ARE INCREASINGLY FRUSTRATED BY THE POLITICAL DISPUTE BETWEEN BRITAIN AND CHINA AND ARE WILLING TO ACCEPT CHINA'S DEMAND THAT HONG KONG RESIDENTS BE LESS THAN FULL MEMBERS OF THE BRITISH NEGOTIATING TEAM ACCORDING TO A SURVEY PUBLISHED SATURDAY BY THE SOUTH CHINA MORNING POST RESPONDENTS BY A MARGIN OF 465 TO 294 FELT THAT BRITAIN SHOULD ACCEPT CHINA'S CONDITION THAT HONG KONG OFFICIALS HAVE LESSTHANFULL STATUS IN ANY TALKS OVER POLITICAL REFORM IN THE COLONY BUT RESPONDENTS BY MORE THAN FOURTOONE ALSO SAID THAT ANY TALKS SHOULD NOT BE CONDUCTED IN SECRET BRITISH INFLATION TICKED HIGHER LAST MONTH THREATENING TO CAUSE A NEW UPWARD SWING IN PRICES AS THE ECONOMY STARTS TO CLIMB OUT OF RECESSION THE OVERALL INFLATION RATE AS MEASURED BY THE YEARONYEAR INCREASE IN THE RETAIL PRICE INDEX WAS 18 COMPARED WITH JANUARY'S 17 RATE AND FORECASTS THEN THAT THE RATE WOULD CONTINUE DECLINING TO 16 THE DATA STRENGTHEN THE ARGUMENT THAT THE GOVERNMENT SHOULDN'T LOWER BANK BASE RATES BELOW THEIR CURRENT 6 LEVEL ANALYSTS GENERALLY SEE INFLATIONARY PRESSURES REMAINING SUBDUED FOR THE NEXT FEW MONTHS AFTER THAT THOUGH THEY EXPECT PRICES TO RISE SHARPLY AGAIN AS RETAILERS TAKE ADVANTAGE OF STRENGTHENED CONSUMER DEMAND THE EXACT REASON FOR THE RISE APPEARS TO BE TWOFOLD MUCH OF THE PRICE DISCOUNTING THAT HELPED TO KEEP JANUARY INFLATION LEVELS LOW CAME TO AN END AND SEASONAL FOOD PRICE INCREASES REFLECTED THE IMPACT OF THE 15 DECLINE IN STERLING'S VALUE AGAINST MOST OTHER MAJOR EUROPEAN CURRENCIES SINCE SEPTEMBER MORE THAN 30000 RUSSIAN MEN EVADED THE DRAFT LAST YEAR AND SECTORS OF RUSSIA'S ARMED FORCES HAVE ONLY 50 TO 80 OF THEIR MANPOWER NEEDS DRAFTDODGING IS AT AN ALLTIME HIGH EVEN THOUGH THE TERM OF COMPULSORY SERVICE WAS RECENTLY CUT TO 18 MONTHS FROM TWO YEARS A GERMAN MUSEUM TOOK POSSESSION IN RUSSIA OF 101 SKETCHES WATERCOLORS AND PRINTS PART OF A COLLECTION OF MASTERPIECES STOLEN BY RED ARMY TROOPS AT THE END OF WORLD WAR II 9303220165 930322 EUROCRATS FIND IT'S HARD TO BURY DIFFERENCES OVER THE BODY POLITIC BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL AS TRADE BARRIERS FALL ACROSS EUROPE BUREAUCRATS PUMP OUT DECREES ALMOST DAILY TO SPEED THE FLOW OF PEOPLE AND GOODS BUT IN ONE AREA THEY'VE HIT A DEAD END THE INTRACOMMUNITY TRANSFER OF HUMAN REMAINS MARK GALLAGHER AN OFFICIAL WITH BRITAIN'S DEPARTMENT OF HEALTH SAYS IN ALL GRAVITY THAT STIFF OPPOSITION HAS STALLED THE PROPOSED DIRECTIVE ORIGINAL PLANS FOR BOTH A STANDARDIZED EUROCOFFIN AND A SINGLE PASSPORT FOR CORPSES HAVE BEEN ABANDONED OFFICIALS CAN'T EVEN AGREE HOW TO CATEGORIZE HUMAN REMAINS THE EUROPEAN COMMISSION ISN'T TOO KEEN ON CLASSIFYING THEM AS PEOPLE AND IT DOESN'T WANT TO CLASSIFY THEM AS GOODS EITHER MR GALLAGHER SAYS AS WITH SO MUCH INTERSTATE TRANSPORT IN EUROPE THE MOVEMENT OF CORPSES IS BURIED IN RED TAPE ITALY THE MOST BUREAUCRATIC WHEN IT COMES TO BURIAL REQUIRES THAT A BODY BE SHIPPED INSIDE A DOUBLE COFFIN ONE WITH A THICK ZINC LINING THE OTHER MADE OF HARDWOOD WITH TONGUEANDGROOVE CARPENTRY THE TWO BOXES MUST BE SEPARATED BY AN ABSORBENT SUCH AS CHARCOAL AND THE ITALIANS WHO BURY MANY OF THEIR DEAD IN ABOVEGROUND TOMBS DEMAND EXTRA PAPERWORK INCLUDING CERTIFICATION THAT THERE WERE NO INFECTIOUS DISEASES PRESENT IN TH AREA WHERE THE DEATH OCCURRED IT'S VERY HARD TO RETURN A BODY TO ITALY IN LESS THAN THREE DAYS SAYS EDMUND DIPPER DIRECTOR OF OPERATIONS FOR KENYON AIR TRANSPORTATION A BRITISH SHIPPER OF HUMAN REMAINS BY CONTRAST THE GERMANS REQUIRE ONLY A SIMPLE COFFIN AND LIMITED PAPERWORK IF A GERMAN DIES IN LONDON AT 9 AM I CAN HAVE HIM IN A PLANE HOME THAT EVENING MR DIPPER SAYS SOME COUNTRIES USE DOCTORS RATHER THAN UNDERTAKERS TO PRESERVE BODIES DOCTORS ARE BUSY PEOPLE SO THEY MAY INJECT FIVE MILS OF FORMALDEHYDE INTO A CORPSE AND SAY THAT'S EMBALMED' SAYS COLIN FIELD PRESIDENT OF THE EUROPEAN ASSOCIATION OF THANATOLOGISTS AS A RESULT HE ADDS THE BODY MAY BE RECEIVED AT THE OTHER END IN AN ADVANCED STATE OF DECOMPOSITION OTHER SNAGS INCLUDE ROAD TRANSPORT OF CORPSES FRANCE REQUIRES REFRIGERATION ITS NEIGHBORS DON'T ENVIRONMENTAL LAWS AND VARIED DEATH CERTIFICATES EVEN SO EUROCRATS INSIST THEY MAY YET RESURRECT THE BILL WE ARE NOWHERE FOR THE TIME BEING CONCEDES MARIETHERESE VANDERVENNE AN EC ADMINISTRATOR IN LUXEMBOURG BUT WE STILL HAVE A WORKING DOCUMENT IT ISN'T DEAD 9303220164 930322 FRENCH INDUSTRIAL OUTPUT PARIS FRANCE'S SLUMPING ECONOMY PRODUCED A SMALL GLIMMER OF HOPE FRIDAY WITH THE ANNOUNCEMENT OF A 04 SEASONALLY ADJUSTED RISE IN THE INDEX OF INDUSTRIAL PRODUCTION DURING JANUARY FROM DECEMBER WHILE THE MANUFACTURED PRODUCTS COMPONENT GAINED 25 9303220163 930322 WHO'S NEWS YOUNKERS INC YOUNKERS INC DES MOINES IOWA ALAN R RAXTER 42 YEARS OLD FORMERLY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS PROMOTED TO EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS FASHION DEPARTMENT STORE CHAIN 9303220162 930322 WHO'S NEWS IGI INC IGI INC BUENA NJ FORMER DEFENSE SECRETARY DICK CHENEY 52 AND TERRENCE O'DONNELL 49 A FORMER GENERAL COUNSEL AT THE DEFENSE DEPARTMENT WERE NAMED TO THE BOARD OF THIS BIOTECHNOLOGY COMPANY INCREASING THE PANEL TO NINE MEMBERS MR CHENEY WAS DEFENSE SECRETARY FROM 1989 TO 1993 AND MR O'DONNELL SERVED AS THE DEPARTMENT'S COUNSEL FROM 1989 TO 1992 IGI PRODUCES POULTRY VACCINES AND IS DEVELOPING A MICROENCAPSULATION TECHNOLOGY FOR A BROAD RANGE OF MEDICAL INDUSTRIAL AND PERSONALCARE PRODUCTS 9303220161 930322 MARKETING & MEDIA QVC PLANS TO LAUNCH DILLER BRAINCHILD TV SHOPPING NETWORK FOR HEALTH GOODS BY LAURA LANDRO AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL HOMESHOPPING POWERHOUSE QVC NETWORK INC IS PLANNING TO LAUNCH A SECOND TV SHOPPING NETWORK LARGELY DEVOTED TO LIFESTYLE AND HEALTH ORIENTED MERCHANDISE THE NEW NETWORK IS THE BRAINCHILD OF BARRY DILLER THE FORMER FOX INC CHAIRMAN WHO BECAME CHIEF EXECUTIVE OF QVC IN DECEMBER AGREEING TO INVEST 25 MILLION MR DILLER WAS WOOED TO THE NETWORK BY ITS CONTROLLING SHAREHOLDERS LIBERTY MEDIA INC THE SPINOFF OF CABLE GIANT TELECOMMUNICATIONS INC AND COMCAST CORP ANOTHER CABLE COMPANY ALTHOUGH MR DILLER CONFIRMED THAT A SECOND NETWORK IS UNDER DEVELOPMENT HE DECLINED TO ELABORATE IT'S SIMPLY PREMATURE TO TALK ABOUT IT HE SAID WE'VE JUST BEGUN PLANNING HOWEVER INDUSTRY EXECUTIVES WHO SAID THEY'D DISCUSSED THE PLANS WITH QVC SAID MR DILLER ENVISIONS A NETWORK POSSIBLY TO BE CALLED QV2 OR THE CONTEMPORARY CHANNEL THAT WOULD FOCUS ON BOTH LIFESTYLE AND ENTERTAINMENT PROGRAMMING SELLING HEALTH AND FOOD PRODUCTS VIDEOS AND BOOKS MR DILLER'S MOVES ARE BEING CLOSELY WATCHED THROUGHOUT THE MEDIA INDUSTRY AS A VETERAN ENTERTAINMENT EXECUTIVE HE STARTED IN NETWORK TELEVISION AND RAN PARAMOUNT COMMUNICATIONS INC'S STUDIO BEFORE JOINING NEWS CORP'S FOX HE IS EXPECTED TO BRING PROGRAMMING SAVVY AND UPSCALE MERCHANDISE TO THE LARGELY DOWNSCALE HOMESHOPPING BUSINESS QVC IS EXPECTED TO ANNOUNCE THE NETWORK SOMETIME THIS SUMMER AND LAUNCH IT BY EARLY 1994 QVC'S NETWORK REACHES ABOUT 44 MILLION HOUSEHOLDS THE SECOND QVC CHANNEL WOULD EFFECTIVELY REPLACE THE FASHION CHANNEL A SMALL HOMESHOPPING NETWORK CONTROLLED BY QVC THAT CURRENTLY REACHES ABOUT EIGHT MILLION SUBSCRIBERS ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN QVC WOULD ALSO HAVE A BETTER CHANCE AT LINING UP MORE NEW SUBSCRIBERS THAN OTHER UPSTART CABLE NETWORKS TELECOMMUNICATIONS WHOSE CHIEF EXECUTIVE JOHN MALONE IS ALSO CHAIRMAN OF LIBERTY IS THE NATION'S LARGEST CABLE OPERATOR AND COMCAST RANKS ABOUT FOURTH IN THE INDUSTRY MR MALONE AND BRIAN ROBERTS PRESIDENT OF COMCAST HAVE GIVEN MR DILLER WIDE REIGN TO DEVELOP THE BUSINESS MOREOVER A NUMBER OF OTHER SMALLER CABLE COMPANIES THAT ARE ALSO INVESTORS IN QVC COULD BE EASILY PERSUADED TO CARRY THE NEW NETWORK THE JUSTICE DEPARTMENT RECENTLY APPROVED LIBERTY'S PURCHASE OF A 75 STAKE IN QVC RIVAL HOME SHOPPING NETWORK INC LIBERTY WHICH ALSO OFFERED TO BUY THE REMAINING SHARES OF HOME SHOPPING IT DOESN'T ALREADY OWN SAID IT HAS NO PLANS TO MERGE QVC AND HOME SHOPPING BUT INDUSTRY EXECUTIVES AND WALL STREET ANALYSTS EXPECT THE TWO WILL BE MERGED EVENTUALLY THUS FORMING A HOME SHOPPING AND ENTERTAINMENT COLOSSUS SUCH A MERGER MIGHT MAKE IT EVEN EASIER TO LAUNCH A SECOND QVC CHANNEL SINCE TAKING HIS POST MR DILLER HAS INVITED A CONSTANT PARADE OF RETAILING APPAREL COSMETICS MANUFACTURING AND ENTERTAINMENT EXECUTIVES TO QVC'S WEST CHESTER PA HEADQUARTERS TO VISIT THE NETWORK'S STUDIO AND VIEW DEMONSTRATIONS OF ITS MASSIVE ORDERTAKING AND PROCESSING OPERATIONS A SECOND CHANNEL FOR QVC WOULD PROVIDE AN OUTLET FOR HIS VISION OF CABLE CHANNELS AS ELECTRONIC RETAIL CATALOGS FOR A VARIETY OF PRODUCTS AND QVC WOULD BE ABLE TO USE ITS EXISTING ELECTRONIC AND TELEPHONE INFRASTRUCTURE TO SERVICE A SECOND CHANNEL THE BEAUTY OF THE BUSINESS IS THAT THERE'S ALMOST NO COST TO ADDING INCREMENTAL STATIONS IF YOU CAN FIGURE OUT HOW TO POSITION THEM SAYS PETER SIRIS A RETAIL ANALYST WITH UBS SECURITIES THE BREAKEVEN POINT IS LOW MR SIRIS SAYS FOOD AND HEALTH ARE TWO CATEGORIES SURE TO DRAW THE MOST INTEREST FROM COUCH POTATOES INDEED QVC COULD CREATE SYNERGIES WITH COUNTLESS ENTITIES INCLUDING WEIGHTLOSS GROUPS OR COMPANIES THAT BUILD EXERCISE EQUIPMENT ONE POSSIBILITY PAUL NEWMAN COULD SIT AND HAWK FOOD PRODUCTS LIKE HIS POPCORN AND SALAD DRESSING TILL THE COWS COME HOME MR SIRIS POSTULATES 9303220160 930322 INTERNATIONAL JAPAN CONSIDERS SPENDING PLAN OF RECORD SIZE MORE THAN 1207 BILLION IS LIKELY TO BE PUMPED INTO SLUGGISH ECONOMY BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN WHEELING OUT THE HEAVY ARTILLERY IN ITS FIGHT AGAINST RECESSION IS PLANNING WHAT MAY TURN INTO ITS BIGGESTEVER SPENDING BLITZ THE FINER POINTS OF THE ECONOMIC STIMULUS INITIATIVE ARE STILL UNDER DISCUSSION BUT FIGURES BEING TOSSED ABOUT BY THE GOVERNMENT SUGGEST THE PACKAGE COULD TOTAL SPENDING OF 14 TRILLION YEN 1207 BILLION AND COULD EVEN PUSH TOWARD 20 TRILLION YEN EVEN THE LOW ESTIMATE WOULD OUTSTRIP A SEPARATE 107 TRILLION YEN PACKAGE THAT WAS APPROVED LAST YEAR BUT WHICH ECONOMISTS SAY FAILED TO SUFFICIENTLY MOVE THE ECONOMY THE TALK OF A LARGE SPENDING PACKAGE UNDERSCORES HOW INTRANSIGENT THE CURRENT ECONOMIC SLUMP HAS BECOME CORPORATE PROFITS IN JAPAN ARE EXPECTED TO TUMBLE FOR A THIRD YEAR IN A ROW FOR THE YEAR ENDING MARCH 31 DEPARTMENT STORE SALES HAVE FALLEN RELENTLESSLY FOR THE PAST 12 MONTHS EVERY DAY MORE COMPANIES ANNOUNCE PLANS TO TRIM STAFF DURING AN APPEARANCE ON A JAPANESE TELEVISION PROGRAM ON SATURDAY HIROSHI MITSUZUKA HEAD OF AN IMPORTANT POLICYMAKING COUNCIL WITHIN THE RULING LIBERAL DEMOCRATIC PARTY CALLED FOR AN ECONOMIC STIMULUS PACKAGE OF ABOUT 14 TRILLION YEN BUT FINANCE MINISTRY OFFICIALS SAID PRIVATELY LAST WEEK THAT THE GOVERNMENT'S FISCAL PACKAGE MIGHT BE MUCH LARGER WHEN ALL IS SAID AND DONE TO BE SURE NOT ALL THAT MONEY WOULD CONTRIBUTE DIRECTLY TO THE GROWTH OF JAPAN'S ECONOMY SOME OF IT WOULD BE FOR FRONT LOADING SPENDING PROJECTS SCHEDULED FOR LATER IN THE FISCAL YEAR IN ADDITION A SIZABLE CHUNK PROBABLY WILL BE USED FOR MEASURES SUCH AS INCREASED PUBLIC INVESTMENT IN SECURITIES TO CONTINUE TO PROP UP THE STOCK MARKET THE GOVERNMENT HAS INTERVENED HEAVILY IN THE MARKET TO PREVENT A FURTHER CRASH IN PRICES NONETHELESS A 20 TRILLION YEN STIMULUS PACKAGE COULD EASILY LIFT THE GROWTH RATE OF JAPAN'S SLUGGISH ECONOMY BY MORE THAN TWO PERCENTAGE POINTS OVER THE NEXT 15 MONTHS ACCORDING TO SG WARBURG SECURITIES JAPAN INC ECONOMIST JESPER KOLL YOU MUST NOT DOUBT THE GOVERNMENT'S COMMITMENT TO BAILING OUT THIS ECONOMY HE SAID THE JAPANESE GOVERNMENT IS EXPECTED TO ANNOUNCE ITS PUBLICSPENDING PACKAGE WITHIN THE NEXT SEVERAL WEEKS POSSIBLY AHEAD OF PRIME MINISTER KIICHI MIYAZAWA'S TRIP TO MEET PRESIDENT CLINTON IN WASHINGTON IN MIDAPRIL ACCORDING TO JAPANESE REPORTS LDP SECRETARY GENERAL SEIROKU KAJIYAMA SAID IN A SPEECH SATURDAY THAT THE PARTY HOPES TO WIN LEGISLATIVE APPROVAL FOR A SUPPLEMENTAL BUDGET THE CENTERPIECE OF A STIMULUS PACKAGE BY MIDJUNE JUST BEFORE LEADERS OF THE SEVEN MOST INDUSTRIALIZED NATIONS GATHER IN TOKYO FOR AN ECONOMIC SUMMIT IN PART THE INITIATIVE IS INTENDED TO HEAD OFF CRITICISM FROM THE US AND OTHER TRADE PARTNERS THAT JAPAN'S GOVERNMENT ISN'T DOING ENOUGH TO PROMOTE THE GROWTH OF ITS ECONOMY AND INCREASE DOMESTIC DEMAND EARLIER THIS MONTH THE GOVERNMENT SAID JAPAN'S ECONOMY GREW AT AN ANNUALIZED RATE OF 05 BETWEEN OCTOBER AND DECEMBER MANY OFFICIALS IN THE FINANCE MINISTRY FEAR THAT WITHOUT HEFTY SPENDING BY THE GOVERNMENT ECONOMIC GROWTH WILL REMAIN FLAT OR CONTRACT FOR AT LEAST THE FIRST SIX MONTHS OF 1993 WITH THE DOMESTIC ECONOMY IN A SLUMP JAPAN'S CONSUMERS HAVE LOST THEIR APPETITE FOR IMPORTS SENDING THE NATION'S POLITICALLY SENSITIVE TRADE SURPLUS ROCKETING TO RECORD HIGHS THE GOVERNMENT STIMULUS PLAN IS EXPECTED TO CALL FOR SPENDING VAST SUMS OF PUBLIC MONEY TO IMPROVE THE NATION'S SOCIAL CAPITAL WITH PROVISIONS FOR OUTFITTING PUBLIC UNIVERSITIES WITH NEW COMPUTERS AND STATE HOSPITALS WITH MORE SOPHISTICATED MEDICAL EQUIPMENT AND LAYING A NATIONWIDE FIBEROPTIC NETWORK THE PLAN IS ALSO EXPECTED TO ALLOCATE MORE MONEY FOR EXPANDING THE NATION'S AIRPORTS BUT SPEND RELATIVELY LESS ON PROMOTING CONVENTIONAL PUBLICWORKS PROJECTS SUCH AS ROAD AND BRIDGE CONSTRUCTION THE PACKAGE MAY ALSO INCLUDE TAX CREDITS TO ENCOURAGE COMPANIES TO SPEND MORE ON FACTORIES AND EQUIPMENT AND CONSUMERS TO SPEND MORE ON THEIR HOMES BUT IT PROBABLY WON'T CALL FOR BROAD REDUCTIONS IN INDIVIDUAL INCOME TAXES MANY ANALYSTS HAD EXPECTED THE FISCAL PACKAGE TO INCLUDE INCOME TAX CUTS OF ABOUT FOUR TRILLION YEN AN IDEA INITIALLY FAVORED BY MR MITSUZUKA IT APPEARS HOWEVER THAT OFFICIALS AT THE FISCALLY CONSERVATIVE FINANCE MINISTRY AIDED BY A GROUP OF FISCAL HAWKS WITHIN THE LDP MANAGED TO SQUELCH SUCH PLANS IT'S UNCLEAR HOW THE GOVERNMENT WILL FUND THE AMBITIOUS FISCAL PACKAGE EVEN WITHOUT THE ADDITIONAL SPENDING THE NATION IS FACING A TAX REVENUE SHORTFALL STILL THE FINANCE MINISTRY IS OPPOSED TO ISSUING DEFICIT BONDS 9303220159 930322 BUSINESS BRIEF TASTY BAKING CO PRINTINGSUPPLY SUBSIDIARY TO BE SPUN OFF TO HOLDERS TASTY BAKING CO PHILADELPHIA SAID IT PLANS TO SPIN OFF ITS PRINTINGSUPPLY SUBSIDIARY PHILLIPS & JACOBS INC TO SHAREHOLDERS IN A TAXFREE DISTRIBUTION LATER THIS YEAR THE BAKING COMPANY SAID IT FILED A REQUEST WITH THE INTERNAL REVENUE SERVICE FOR AN ADVANCE RULING THAT THE DISTRIBUTION WILL QUALIFY AS TAXFREE NO DATE WAS SET FOR COMPLETION OF THE SPINOFF OF THE SUBSIDIARY WHICH DISTRIBUTES SUPPLIES AND EQUIPMENT TO THE PRINTING INDUSTRY PHILLIPS & JACOBS HAD SALES OF 1587 MILLION AND OPERATING PROFIT OF 63 MILLION FOR 1992 THE PLAN IS SUBJECT TO REGULATORY AND OTHER APPROVALS 9303220158 930322 NIPPON STEEL NKK AND KOBE REDUCE EARNINGS PROJECTIONS SPECIAL TO THE WALL STREET JOURNAL TOKYO THREE MAJOR JAPANESE STEEL MAKERS NIPPON STEEL CO NKK CORP AND KOBE STEEL LTD ANNOUNCED THEIR LATEST EARNINGS PROJECTIONS FOR THE YEAR ENDING MARCH 31 LOWERING SOME EARLIER PREDICTIONS AMID WEAK DEMAND FROM THE AUTOMOBILE AND CONSTRUCTION INDUSTRIES NIPPON STEEL THE NATION'S LARGEST STEELMAKER SAID ITS PARENT'S NET PROFIT IS LIKELY TO POST A 95 FALL TO FOUR BILLION YEN 345 MILLION FROM 8376 BILLION YEN THE YEAR BEFORE THE COMPANY HASN'T RELEASED A NET PROFIT PROJECTION BEFORE IT ATTRIBUTED THE EXPECTED SHARP DROP TO LOSSES INCURRED IN LIQUIDATION OF AFFILIATES AND THE INTRODUCTION OF A CORPORATE PENSION FUND PLAN NIPPON STEEL NOW PROJECTS SALES AT 239 TRILLION YEN DOWN 04 FROM THE 240 TRILLION YEN THE COMPANY PREDICTED IN NOVEMBER AND DOWN 91 FROM 2629 TRILLION YEN A YEAR EARLIER THE PRETAX PREDICTION IS UNCHANGED AT 28 BILLION YEN DOWN 72 FROM 10021 BILLION YEN A YEAR EARLIER NKK REVISED ITS PRETAX PROJECTION TO FIVE BILLION YEN DOWN 50 FROM THE 10 BILLION YEN THE COMPANY PREVIOUSLY PREDICTED AND DOWN 87 FROM 3752 BILLION YEN A YEAR EARLIER NKK'S SALES ARE NOW SEEN AT 128 TRILLION YEN DOWN 15 FROM THE 130 TRILLION YEN PREDICTED EARLIER AND DOWN 27 FROM 1315 TRILLION YEN IN THE PREVIOUS FISCAL YEAR NKK MAINTAINED ITS EARLIER PROJECTION THAT ITS NET PROFIT WILL BREAK EVEN KOBE STEEL LOWERED SALES PROJECTIONS TO 118 TRILLION YEN DOWN 08 FROM 119 TRILLION YEN PREVIOUSLY PREDICTED BY THE COMPANY AND 93 BELOW THE 1301TRILLIONYEN TURNOVER THE YEAR BEFORE PREDICTIONS FOR PRETAX PROFIT AND NET PROFIT ARE UNCHANGED AT 14 BILLION YEN DOWN 71 FROM 4774 BILLION YEN THE YEAR AGO AND 12 BILLION YEN DOWN 59 FROM 2916 BILLION YEN RESPECTIVELY 9303220157 930322 FINANCING BUSINESS MARK IV INDUSTRIES INC MARK IV INDUSTRIES INC AMHERST NY ANNOUNCED THE PUBLIC OFFERING AT PAR OF 225 MILLION PRINCIPAL AMOUNT OF ITS 8 3/4 SENIOR SUBORDINATED NOTES DUE APRIL 1 2003 BEAR STEARNS & CO IS UNDERWRITER ANOTHER 33 MILLION OF THE NOTES IS BEING SOLD TO COVER OVERALLOTMENTS BY THE UNDERWRITER NET PROCEEDS WILL BE USED TO FINANCE THE RETIREMENT OF ABOUT 1902 MILLION OF MARK IV'S 13 3/8 SUBORDINATED DEBENTURES DUE MARCH 15 1999 THE DIVERSIFIED MANUFACTURER SAID 9303220156 930322 WHO'S NEWS NYNEX CORP NYNEX CORP NEW YORK JOHN M BELL 41 YEARS OLD WAS ELECTED GROUP VICE PRESIDENTGREATER METRO REGION FOR NEW YORK TELEPHONE ONE OF THE MAIN SUBSIDIARIES OF THIS BELL REGIONAL COMPANY MR BELL HAD BEEN VICE PRESIDENT AT TELESECTOR RESOURCES GROUP A JOINT SUBSIDIARY OF NEW YORK TELEPHONE AND NEW ENGLAND TELEPHONE THE OTHER MAIN NYNEX UNIT HE SUCCEEDS ARNOLD J ECKELMAN 49 WHO BECOMES EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF NEW YORK TELEPHONE 9303220155 930322 STATES UNLIKELY TO USE OREGON'S MEDICAID MODEL BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON OREGON'S PLAN TO DENY MEDICAID COVERAGE FOR SOME MEDICAL SERVICES IN ORDER TO MAKE BENEFITS FOR BASIC PROCEDURES AVAILABLE TO ALL POOR PEOPLE ISN'T LIKELY TO SPREAD TO OTHER STATES SOON UNDER THE OREGON SYSTEM APPROVED FRIDAY BY THE CLINTON ADMINISTRATION 688 MEDICAL PROCEDURES AND SERVICES WERE RANKED ACCORDING TO THEIR COSTEFFECTIVENESS BASED ON PROJECTIONS OF AVAILABLE FUNDS OFFICIALS DECIDED THEY WOULDN'T COVER ANY TREATMENT RANKED BELOW 568 BUT WITH THE SAVINGS THE STATE WILL BE ABLE TO PROVIDE MEDICAID TO THE 120000 OREGONIANS WHO NOW LIVE BELOW THE POVERTY LINE BUT DON'T RECEIVE ANY BENEFITS THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES WHICH GRANTED OREGON A WAIVER FROM FEDERAL MEDICAID RULES SAID THE PLAN WILL SAVE THE FEDERAL GOVERNMENT ABOUT 3 MILLION OVER FIVE YEARS WHILE RAISING THE STATE'S 1 BILLION ANNUAL HEALTH CARE BUDGET BY ABOUT 20 MILLION OVER THE SAME PERIOD THE PROSPECT OF EXPANDING MEDICAID COVERAGE WITH LITTLE ADDED COST HASN'T SPARKED A FLOOD OF OREGONLIKE INITIATIVES WE DON'T SEE 50 STATES RUSHING UP TO OUR DOOR TO GET HEALTH CARE WAIVERS TO ENACT RATIONING PROGRAMS SAID JOE ANTOS THE HUMAN SERVICES AGENCY'S DIRECTOR OF RESEARCH AND DEMONSTRATIONS FEW STATE LEGISLATURES ARE WILLING TO TELL CONSTITUENTS THAT CERTAIN MEDICAL PROCEDURES ARE TOO COSTLY AND INEFFECTIVE HE EXPLAINED MOREOVER MANY ARE WAITING TO SEE WHAT HEALTH CARE REFORMS HILLARY RODHAM CLINTON'S HEALTH CARE TASK FORCE RECOMMENDS ITS PROPOSALS ARE DUE IN EARLY MAY WHATEVER THE TASK FORCE PROPOSES DONNA SHALALA HEALTH AND HUMAN SERVICES SECRETARY SAID FRIDAY THAT PRESIDENT CLINTON WILL FAVOR GIVING STATES THE FLEXIBILITY TO DESIGN APPROACHES TO THEIR LOCAL PROBLEMS OREGON REP RON WYDEN BELIEVES HIS STATE'S APPROACH IS THE RIGHT ONE OREGON'S PLAN IS BUILT AROUND EXACTLY THOSE FEATURES THAT ARE CRUCIAL TO SECURING HEALTH FOR ALL AMERICANS HE SAID THE DEMOCRATIC CONGRESSMAN SAID THE FEATURES INCLUDE AN EMPHASIS ON PREVENTION EARLY INTERVENTION FOR WOMEN AND CHILDREN COST CONTAINMENT THROUGH MANAGED CARE A FOCUS ON MEDICALLY EFFECTIVE SERVICES AND EXPANDED USE OF NONPHYSICIAN SERVICES HE DISAGREED WITH CHARGES THAT THE OREGON PLAN RATIONS HEALTH CARE YOU CANNOT RATION HEALTH CARE TO PEOPLE WHO GET NONE HE ARGUED 9303220154 930322 TOYOTA NISSAN SAY OUTPUT SALES EXPORTS ALL FELL IN FEBRUARY SPECIAL TO THE WALL STREET JOURNAL TOKYO TOYOTA MOTOR CORP AND NISSAN MOTOR CO JAPAN'S TWO LARGEST CAR MAKERS REPORTED THAT DOMESTIC PRODUCTION SALES AND EXPORTS ALL DECLINED IN FEBRUARY FROM A YEAR EARLIER REFLECTING WEAK VEHICLES MARKETS IN JAPAN AND NORTH AMERICA DOMESTIC PRODUCTION IN FEBRUARY FELL 12 AT TOYOTA JAPAN'S NO 1 CAR MAKER FOR THE FOURTH CONSECUTIVE MONTH OF YEARTOYEAR DECLINE PRODUCTION AT NISSAN THE NO 2 JAPANESE AUTOMAKER FELL FOR THE EIGHTH STRAIGHT MONTH THIS TIME BY 11 DOMESTIC SALES DROPPED 93 FOR TOYOTA AND 65 FOR NISSAN WHICH COMPARES WITH A 79 FALL IN THE OVERALL JAPANESE VEHICLE MARKET IN FEBRUARY TOYOTA'S SHARE OF THE MARKET FELL 07 PERCENTAGE POINT FROM FEBRUARY 1992 TO 324 WHILE NISSAN'S SHARE ROSE 03 PERCENTAGE POINT TO 247 FOR OVERSEAS SHIPMENTS TOYOTA REPORTED A 67 DECLINE WHILE NISSAN SHOWED A 22 DROP THE SEVENTH CONSECUTIVE MONTH OF DECLINE IN ADDITION TO EXPANSION OF OVERSEAS PRODUCTION EXPORTS WERE DEPRESSED BY CONTINUED WEAK DEMAND IN NORTH AMERICA TO AN EXTENT THAT CAN'T BE OFFSET BY BRISK DEMAND FROM SOUTHEAST ASIA AND EUROPE THE COMPANIES SAID TOYOTA'S OVERSEAS PRODUCTION CLIMBED 24 IN FEBRUARY FOR THE NINTH CONSECUTIVE MONTH OF YEARTOYEAR GROWTH NISSAN'S OVERSEAS OUTPUT ROSE 31 ALSO FOR THE NINTH STRAIGHT MONTH OF GAIN IN FEBRUARY TOYOTA MANUFACTURED 318707 VEHICLES OF WHICH 254596 WERE PASSENGER CARS DOWN 1 FROM A YEAR EARLIER COMMERCIAL VEHICLE PRODUCTION TOTALED 64111 UNITS DOWN 19 NISSAN BUILT 165022 VEHICLES WITH PASSENGER CARS ACCOUNTING FOR 137630 UNITS DOWN 11 FROM THE YEAREARLIER MONTH AND COMMERCIAL VEHICLES TOTALING 27392 UNITS DOWN 13 DOMESTICALLY TOYOTA SOLD 179668 VEHICLES WHICH CONSISTED OF 131063 PASSENGER CARS DOWN 86 FROM THE YEAREARLIER LEVEL AND 48605 COMMERCIAL VEHICLES DOWN 11 NISSAN SOLD 104392 VEHICLES AS PASSENGER CAR SALES DECLINED 33 TO 79831 UNITS AND COMMERCIAL VEHICLE SALES PLUMMETED 16 TO 24561 UNITS EXPORTS BY TOYOTA TOTALED 141387 VEHICLES WITH PASSENGER CAR SHIPMENTS DOWN 65 TO 104344 UNITS AND COMMERCIAL VEHICLE SHIPMENTS DOWN 72 TO 37043 UNITS NISSAN EXPORTED 64442 VEHICLES DOWN 22 ITS PASSENGER CAR EXPORTS DROPPED 23 TO 53071 UNITS WHILE COMMERCIAL VEHICLE EXPORTS FELL 15 TO 11371 UNITS TOYOTA'S OVERSEAS PRODUCTION CAME TO 83233 VEHICLES WHILE NISSAN PRODUCED 73441 VEHICLES OVERSEAS 9303220153 930322 CREDIT MARKETS FOREIGN BONDS AGAIN ARE RIPE BUT RISKY FOR NEW INVESTMENT BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTING IN FOREIGN GOVERNMENT BOND MARKETS IS A BIT LIKE CLIMBING A MOUNTAIN THE VIEW FROM THE TOP IS BREATHTAKING BUT THE ASCENT CAN BE TREACHEROUS DESPITE THE DANGER MANY BOND INVESTORS BELIEVE THAT NOW IS THE TIME TO DO SOME CLIMBING IN EUROPE THE ROUTE TO HIGHER BOND RETURNS ABROAD IS LITTERED WITH CASUALTIES FROM LAST FALL WHEN A EUROPEAN CURRENCY CRISIS DEVASTATED PORTFOLIOS BECAUSE OF THAT UPHEAVAL LAST YEAR'S TOTAL RETURN OF 686 COUPON PAYMENTS PLUS PRICE GAINS IN THE SPANISH GOVERNMENT BOND MARKET FOR EXAMPLE TURNED INTO A 1010 LOSS WHEN CONVERTED INTO DOLLARS BUT NOW MAY BE THE TIME TO LOOK AT FOREIGN GOVERNMENT BOND MARKETS AGAIN MONEY MANAGERS SAY DESPITE LAST YEAR'S RESPECTABLE 724 TOTAL RETURN IN THE US TREASURY BOND MARKET THEY SAY THE BEST RETURNS OVER THE NEXT YEAR MAY BE ELSEWHERE AMONG INDUSTRIALIZED NATIONS SOME OF THE HIGHEST BOND RETURNS MAY BE FOUND IN PLACES SUCH AS FRANCE AND SPAIN WITH GERMANY NOT FAR BEHIND WE LIKE BONDS PERIOD THE ONLY QUESTION IS WHICH IS THE FASTEST HORSE SAYS MADIS SENNER MANAGER OF THE VISTA GLOBAL INCOME FUND AT CHASE MANHATTAN PRIVATE BANK IT WAS JAPAN LAST YEAR NOW IT'S EUROPE HE SAYS I'M LOOKING TO LOAD UP THE BOAT WE'RE IN A DEFLATIONARY PERIOD AND INTEREST RATES WORLDWIDE ARE GOING TO COME DOWN THE US BOND MARKET RALLY MAY SLOW AS THE ECONOMY GAINS STRENGTH HE SAYS BUT FOREIGN NATIONS' BOND RALLIES MAY BE JUST GETTING STARTED AS THEIR ECONOMIES ARE STILL SLOWING SMALL INVESTORS WHO DECIDE TO TAKE THE TRIP ABROAD USUALLY DO SO THROUGH MUTUAL FUNDS WHERE RISKS ARE SPREAD AMONG SEVERAL COUNTRIES KLAUS BUESCHER PRESIDENT OF THE VAN ECKGLOBAL INCOME FUND RECOMMENDS THAT INVESTORS PUT AT MOST 5 TO 10 OF THEIR ASSETS INTO FOREIGN BOND MUTUAL FUNDS IT WOULD BE UNWISE TO ADVISE ANY INDIVIDUAL INVESTOR TO GO INTO FOREIGN BOND MARKETS ON HIS OWN HE SAYS ONE HAS TO BE PREPARED TO HEDGE AGAINST CURRENCY RISKS AND TO CONSTANTLY MONITOR THE MARKETS A RISING DOLLAR ERODES THE VALUE OF FOREIGN HOLDINGS TO AMERICAN INVESTORS AFTER TRANSLATION INTO US CURRENCY THE BULLS' CASE HINGES ON GERMANY WITH THE GERMAN ECONOMY ON THE ROPES THEY EXPECT THE GERMAN CENTRAL BANK THE BUNDESBANK TO KEEP ON CUTTING INTEREST RATES AS IT DID LAST WEEK AND TO WORRY LESS ABOUT INFLATION WHEN GERMANY WHITTLES RATES OTHER EUROPEAN CENTRAL BANKS SHOULD BE ENCOURAGED TO DO THE SAME AND AS BOND YIELDS DECLINE PRICES RISE FOR OLDER BONDS MR BUESCHER HAS 60 OF HIS ASSETS IN EUROPEAN GOVERNMENT BONDS THE HIGHEST YIELDS AND RELATIVELY SAFEST PLAYS ARE PROBABLY IN SPAIN AND FRANCE HE SAYS HIS HEAVIEST CONCENTRATION 25 OF THE PORTFOLIO IS IN SHORTTERM AND INTERMEDIATETERM SPANISH GOVERNMENT BONDS WITH YIELDS OF 11 TO 14 SPANISH NOTES HAVE THE BIGGEST YIELD DROP POTENTIAL WHEN GERMAN RATES FALL HE SAYS HE HAS 12 IN SHORTTERM TO INTERMEDIATETERM GERMAN GOVERNMENT NOTES ESPECIALLY FIVEYEARS AND 7 IN FRENCH GOVERNMENT BONDS WE'VE RECENTLY INCREASED OUR EXPOSURE TO EUROPEAN GOVERNMENT BONDS SAYS CHASE PRIVATE BANK'S MR SENNER WHO MANAGES 100 MILLION IN THE VISTA GLOBAL INCOME FUND AN OFFSHORE FUND AND PRIVATE ACCOUNTS WE ALL KNOW THAT EUROPEAN INTEREST RATES ARE GOING TO GO DOWN AND MONEY IS GOING TO BE MADE IT'S A MATTER OF WHEN HE HAS 20 OF HIS HOLDINGS IN GERMAN GOVERNMENT SECURITIES INCLUDING FIVEYEAR AND 10YEAR NOTES BUT IS LOOKING TO PULL THE TRIGGER AND INVEST MORE AGGRESSIVELY OUTSIDE GERMANY RECENTLY HE HAS BEEN BUYING UP FRENCH AND DANISH BONDS AND HAS SOME INTEREST IN SPANISH AND ITALIAN GOVERNMENT BONDS AS WELL ACCORDING TO JOHN SCHNIEDWIND SENIOR VICE PRESIDENT OF RESEARCH AT BENHAM GROUP THE 348 MILLION BENHAM EUROPEAN GOVERNMENT BOND FUND HAS FAVORED FRANCE AND GERMANY OF LATE THE FUND MANAGED THROUGH JP MORGAN IN LONDON HAS ABOUT A THIRD OF ITS ASSETS IN FRANCE AND A THIRD IN GERMANY BUT HAS HALVED ITS HOLDINGS OF ITALIAN GOVERNMENT BONDS TO ABOUT 7 OF ALL ASSETS BECAUSE OF POLITICAL WORRIES THE FUND'S TOTAL RETURN OF 1003 OVER THE PAST YEAR PUTS IT IN THE TOP THIRD OF WORLDWIDE BOND FUNDS TRACKED BY MORNINGSTAR ACCORDING TO MR SCHNIEDWIND THE FUND HAS BEEN SUCCESSFUL BECAUSE IT DOESN'T BET ON CURRENCY MOVES LAST YEAR MOST OF THE FUND'S RETURN CAME FROM DECLINING INTEREST RATES AND FROM COUPON PAYMENTS WERE IT NOT FOR CURRENCY MOVES THE FUND WOULD HAVE RETURNED 12 HE SAID JEREMY SMOUHA A DIRECTOR AT GLOBAL ASSET MANAGEMENT LTD OF LONDON WITH 4 BILLION OF STOCKS AND BONDS UNDER MANAGEMENT IS ALSO BULLISH ON FRANCE FRANCE REMAINS THE PLACE WHERE INTEREST RATES HAVE THE FURTHEST TO FALL HE SAYS CITING ITS VERY LOW INFLATION MR SMOUHA HAS 30 OF HIS BOND HOLDINGS IN FRENCH GOVERNMENT BONDS WITH A THIRD OF THAT IN FIVEYEAR NOTES AND TWOTHIRDS IN 10YEAR ISSUES JAPANESE GOVERNMENT BONDS HAVE BEEN STRONG PERFORMERS BUT SOME MONEY MANAGERS SAY THAT NOW ISN'T THE TIME TO INVEST MORE THERE THE JAPANESE RALLY IS PROBABLY NOT OVER SAYS THOMAS PRAPAS AN ECONOMIST AT CLEMENTE CAPITAL INC BUT IT'S NOT A PLACE WHERE I WOULD MAKE A SIGNIFICANT INVESTMENT OF NEW MONEY RIGHT NOW HE SAYS AS RATES THERE ARE ALREADY VERY LOW MR PRAPAS IS MORE OPTIMISTIC ABOUT AUSTRALIAN GOVERNMENT BONDS WHICH HAVE RETURNED 1140 SO FAR THIS YEAR AUSTRALIA HAS DONE WELL BECAUSE THEIR ECONOMY HAS BEEN SO WEAK FOR SO LONG THAT INFLATION HAS ALMOST DISAPPEARED HE SAYS THERE IS AN EXCELLENT CHANCE THAT THEY WILL CUT INTEREST RATES IN THE NEXT FEW WEEKS AN IMPORTANT CAVEAT FOR ANYONE INVESTING ABROAD IS THAT GAINS IN THE DOLLAR'S VALUE CAN SHRIVEL AWAY RETURNS ONCE PORTFOLIO VALUES ARE CONVERTED INTO DOLLARS LAST YEAR FOR EXAMPLE AUSTRALIAN GOVERNMENT BONDS RETURNED 1019 IN LOCAL CURRENCY BUT LOST 011 WHEN CONVERTED TO DOLLARS HEDGING TO PROTECT AGAINST CURRENCY SWINGS CAN BE VERY COSTLY IN PLACES SUCH AS SPAIN OR FRANCE WHERE INTEREST RATES ARE HIGH SOME FUNDS NEVER HEDGE AGAINST CURRENCY MOVES FIGURING THAT IN THE LONG RUN IT IS TOO EXPENSIVE BUT A NUMBER OF MONEY MANAGERS CONTEND THAT AGGRESSIVE HEDGING AND SHARP INTERESTRATE DROPS CAN BRING DECENT RETURNS FROM FOREIGN MARKETS EVEN IF THE DOLLAR GAINS STRENGTH MR SENNER OF CHASE PRIVATE BANK ISN'T TOO WORRIED ABOUT THE DOLLAR GAINING ANYWAY THE CHANCES OF THE DOLLAR GOING HIGHER ARE LIMITED AND THE CHANCES FOR GOING LOWER ARE GOOD HE SAYS BUT MR PRAPAS OF CLEMENTE CAPITAL DISAGREES SAYING AS THE US ECONOMY BUILDS UP STEAM RELATIVE TO EUROPE THE DOLLAR WILL GROW AND WILL NEED TO BE HEDGED PRICES OF NOTES AND BONDS DECLINED ON INFLATION WORRIES THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 104 FOR A YIELD OF 681 UP FROM 678 THE 10YEAR NOTE DROPPED 1/2 POINT TO 102 5/32 TO YIELD 595 UP FROM 588 MANY TRADERS FRIDAY FOCUSED ON A 197POINT GAIN IN THE COMMODITY RESEARCH BUREAU INDEX OF 21 WIDELY WATCHED COMMODITY FUTURES THE INDEX CLOSED AT 21367 AGAIN RAISING THE SPECTER OF RISING INFLATION THE TREASURY IS SLATED TO SELL 1525 BILLION IN TWOYEAR NOTES ON WEDNESDAY AND 110 BILLION IN FIVEYEAR NOTES THURSDAY THE WHENISSUED FIVEYEAR NOTE ENDED AT A YIELD OF 520 UP FROM 510 ON THURSDAY WHILE THE WHENISSUED TWOYEAR NOTE ENDED AT 397 UP FROM 388 MEANWHILE AN OFFICIAL IN THE COMPTROLLER'S OFFICE FOR NEW YORK CITY SAID THAT THE CITY HAS POSTPONED ITS PLANS TO SELL YENDENOMINATED SAMURAI BONDS UNTIL THE END OF APRIL THE CITY HAD PLANNED TO SELL THE BONDS AS PART THE YEAR'S FIRST SALE OF REFUNDING GENERAL OBLIGATION BONDS NOW SCHEDULED FOR THE WEEK OF MARCH 29 BUT DECIDED THAT CERTAIN TAX REGULATIONS WOULD MAKE IT DIFFICULT FOR THE CITY TO INCLUDE THEM IN THE SALE 9303220152 930322 POLITICS & POLICY PENTAGON'S SHYCOFF RESIGNS AS CHIEF FINANCIAL OFFICER WASHINGTON THE PENTAGON'S CHIEF FINANCIAL OFFICER RESIGNED SUDDENLY LAST WEEK THE DEPARTURE OF DONALD SHYCOFF THE DEFENSE DEPARTMENT'S ACTING COMPTROLLER IS BOUND TO ADD TO CONCERN ABOUT THE SLOW PACE OF APPOINTMENTS AT THE PENTAGON OF THE DOZENS OF PRESIDENTIAL APPOINTMENTS TO BE MADE ONLY A HANDFUL HAVE BEEN ANNOUNCED AND ONLY A FEW HAVE BEEN CONFIRMED BY THE SENATE IN ADDITION DEFENSE SECRETARY LES ASPIN HAS BEEN HOSPITALIZED TWICE RECENTLY FOR HEART PROBLEMS MR SHYCOFF COULDN'T BE REACHED FOR COMMENT ON HIS DEPARTURE FRIENDS OF MR SHYCOFF SAID HE HAD SEVERAL REASONS FOR QUITTING AND THAT DISSATISFACTION WITH MR ASPIN'S CLOSETOTHEVEST MANAGEMENT STYLE WAS ONLY PART OF HIS MOTIVE FOR LEAVING ALICE MARONI AN AIDE TO MR ASPIN INVOLVED IN FINANCIAL MATTERS CALLED MR SHYCOFF'S RESIGNATION A PERSONAL DECISION 9303220151 930322 LEISURE & ARTS TELEVISION WITNESSES TO THE REAL MCCARTHY ERA BY DOROTHY RABINOWITZ THE UNAMERICANS A PRODUCTION OF BBC LIONHEART AND ARTS & ENTERTAINMENT ABOUT THE HUNT FOR SUBVERSIVES IN THE 1940S AND '50S SHOULD IF NOTHING ELSE SERVE AS A USEFUL REMINDER OF WHAT THE AGE OF MCCARTHYISM WAS REALLY LIKE IT IS PARTICULARLY USEFUL TO HAVE REMINDERS OF THE PERIOD FROM TIME TO TIME GIVEN THE QUANTITIES OF OUR MOST PRIVILEGED CITIZENS WHO ARE NOWADAYS PRONE TO DECLARE THEMSELVES VICTIMS OR NEAR VICTIMS OF MCCARTHYISM AT THE DROP OF A HAT OR THE REFUSAL OF A GOVERNMENT ARTS GRANT WHO CAN FORGET THE CREATOR OF MURPHY BROWN DIANE ENGLISH DECLARING IN THE MIDST OF A REMARKABLY PROFITABLE CONTRETEMPS WITH THE THENVICE PRESIDENT SUGGESTING THAT SHE HAD ENDURED AND TRIUMPHED OVER THE VICISSITUDES OF A NEW AGE OF BLACKLISTING WE HAVE HEARD THE SAME ONLY MORE EXPLICITLY FROM A HOST OF ACTIVISTS WARNING THAT THE DARK NIGHT OF FASCISM IS ALREADY UPON US BECAUSE SAY THE NATIONAL ENDOWMENT FOR THE ARTS OR SOME OTHER AGENCY HAD NOT FUNDED THEIR PROJECTS THE ABOVENAMED AND ALL THEIR FRIENDS COULD DO WORSE THAN SIT DOWN TO WATCH FRIDAY 810 PM ON A&E THIS CHRONICLE OF THE ACTUAL MCCARTHY ERA WHICH IS FOR A CHANGE ABOUT MOSTLY ORDINARY PEOPLE THAT IS THIS IS NOT ABOUT THE HOLLYWOOD TEN OR LILLIAN HELLMAN'S ALTOGETHERTOOFAMOUS CONSCIENCE RATHER IT CONCERNS PARTY MEMBERS AND SOME ONLY MISTAKEN FOR SUCH WHO HAD WITH SOME EXCEPTIONS LED OBSCURE LIVES BEFORE AND AFTER BEING TARGETED AS SECURITY RISKS ONE OF THE LESS OBSCURE WAS A YOUNG FOREIGNSERVICE OFFICER JOHN S SERVICE WHO WAS CHARGED WITH LOSING CHINA TO THE COMMUNISTS BY THE TIME SEN MCCARTHY WAS FINISHED WITH HIM THE STATE DEPARTMENT HAD FIRED MR SERVICE BLACKLISTED THE FORMER DIPLOMAT FOUND WORK IN THE PLUMBINGSUPPLY BUSINESS UNTIL THE ATMOSPHERE CHANGED HE APPEARS TO HAVE BEEN LUCKIER THAN THE HOUSING OFFICIAL WHO WENT JOBLESS TILL A QUAKER COUPLE GAVE HIM A JOB AS A JANITOR THE ACTUAL FORMER COMMUNISTS AS OPPOSED TO THOSE WHO WERE ONLY ACCUSED TALK WITH MARKED PASSION ABOUT THEIR POLITICAL LIVES AND ALLEGIANCE HAVE YOU EVER BEEN IN LOVE ONE OF THEM ASKS IT WAS HE SAYS JUST LIKE THAT ANOTHER GRANDMOTHERLY COMMUNIST AVERS WITH SOME PRIDE THAT THE PARTY KICKED HER OUT BUT SHE REMAINS A BELIEVER STILL ALL THE BLACKLISTEES HERE THE LABOR LEADER THE HOUSEWIFE THE WAITRESS REMEMBER THE CALL OF HOPE AND BROTHERHOOD THAT THE PARTY REPRESENTED TO THEM THEY PRESENT OF COURSE AN UNDENIABLY APPEALING PICTURE THAT MAKES THESE GENTLE AGED MEN AND WOMEN DIFFICULT TO CONNECT WITH THE PARTY FAITHFUL KNOWN TO HISTORY A PITY ONE CAN'T GLEAN FROM THIS FILM EXCEPT IN PASSING CERTAIN SALIENT FACTS ABOUT THOSE FAITHFUL AND THEIR ROBOTLIKE OBEDIENCE TO MOSCOW A TRUTH INDISPENSABLE TO ANY PRODUCTION UNDERTAKING TO TELL HOW IT WAS TO BE A MEMBER OF THE CP WHEN HITLER MADE HIS PACT WITH STALIN AMERICAN COMMUNISTS JOINED HANDS WITH RIGHTWING ISOLATIONISTS TO DENOUNCE AID TO BRITAIN AND ANY AMERICAN INTERVENTION WHEN THE NAZIS INVADED THE SOVIET UNION IN THE SUMMER OF 1941 THE PARTY FAITHFUL IMMEDIATELY DEMANDED ALLOUT WAR ON THE FASCISTS WHATEVER IT LACKS THIS IS A PRODUCTION WORTH ATTENDING ONE CHARGED WITH A BITTER INTIMACY AS THE FORMER OBJECTS OF SURVEILLANCE TELL HOW IT WAS TO BE PURSUED BECAUSE ONE WAS A MEMBER OF THE PARTY OR THOUGHT TO BE ITS FIRST PART TITLED FIVE MINUTES TO MIDNIGHT OFFERS POTENT ARCHIVAL FOOTAGE OF LATE '40S AND EARLY '50S POLITICAL RALLIES WARNING OF THE DANGER OF SUBVERSION AND EDUCATIONAL FILMS WITH THE SAME MISSION IT'S ESPECIALLY GOOD TO GET GLIMPSES OF SEN MCCARTHY OTHER THAN THE STANDARD PICTURES OF DEMAGOGIC FRENZY HERE WE SEE THE MORE EVERYDAY ADVENTURER AT WORK STILL WITH THAT EERIE SINGSONG IN HIS VOICE AS HE TALKS TO INTERVIEWERS BUT A MAN NEVERTHELESS WITH A PATINA OF REASONABLENESS STILL LEFT TO HIM THIS IS THE MCCARTHY THAT IS MOST CHILLING THE CALM BUSINESSLIKE ONE DRONING QUIETLY ON ABOUT HOW BACK HOME IN WISCONSIN THEY HAVE THIS WORD GUTS AND HOW HE WOULD LIKE TO USE THAT WORD IF HE MIGHT TO DESCRIBE WHAT'S NECESSARY TO NAME TRAITORS IT'S ALSO GOOD TO HAVE THIS REMINDER OF THE MCCARTHY THAT WAS IN LIGHT OF THE HBO FILM CITIZEN COHN IN THAT PIECE OF HISTORICAL REVISIONISM BASED ON NICHOLAS VON HOFFMAN'S BOOK THAT AIRED NOT LONG BACK MCCARTHY IS NO MORE THAN A KINDLY CLOWN A MERE PUPPET CONTROLLED BY ROY COHN THE REAL AND COMPLETE MASTERMIND OF THE SENATOR'S INVESTIGATIVE ADVENTURES A MORE LUDICROUS REWRITING OF REALITY IS HARD TO IMAGINE THE PRODUCER OF THE UNAMERICANS ARCHIE BARON HAS ASSEMBLED AN IMPRESSIVE ARRAY OF WITNESSES TO THE TOLL THE INVESTIGATIVE FRENZY TOOK THEY INCLUDE THE ELECTRICIAN WHO MADE AN OFFHANDED JEST ABOUT BEING A MEMBER OF THE COMMUNIST PARTY TO A GIRL HE HAD JUST MET WHO ALSO HAPPENED TO WORK FOR THE FBI THE RESULT WAS A LIFE EMBITTERED BY BLACKLISTING AND LONG YEARS OF UNEMPLOYMENT THE MOST APPEALING WITNESS OF ALL PERHAPS IS SEAMAN BILL BAILEY WHO WAS UNLIKE THE ELECTRICIAN A COMMUNIST AND A VOCAL ONE WHO DEFIED THE COMMITTEE THE CONTRAST BETWEEN HIM AND THE FILM'S OTHER UNFORGETTABLE FIGURE FORMER COMMUNIST AND PROFESSIONAL FRIENDLY WITNESS HARVEY MATUSOW COULD HARDLY BE MORE VIVID HERE IS MR MATUSOW WHO SUPPLIED THE COMMITTEE WITH COUNTLESS NAMES TODAY A GRAYBEARD MUSING ALOUD ON HOW TERRIBLE IT WAS THAT SUCH A LIAR AS HE COULD HAVE BEEN BELIEVED AND WHY HAD HE MADE UP SO MANY STORIES HIS LIST OF REASONS IS LONG HE CAME FROM AN IMMIGRANT FAMILY HE CAME FROM NEW YORK HE WAS A HIGHSCHOOL DROPOUT AND THEN THERE WAS THE MONEY AND FAME THE FILMMAKERS DEPLOY MR MATUSOW AT TIRESOME LENGTH THOUGH IT'S CLEAR TO SEE WHY THEY THINK THEY SHOULD HANG ON HIS EVERY WORD THE FACT REMAINS THAT LISTENING TO MR MATUSOW TALK ABOUT HIMSELF AND HIS PHILOSOPHY OF LIFE IS A PUNISHMENT ON THE ORDER OF LISTENING TO SOMEONE DISCOURSE ON HIS 30 YEARS OF THERAPY HIS REVERIES ARE INTERCUT WITH SEAMAN BAILEY'S MEMORIES OF GOING TO BED HUNGRY WHEN BLACKLISTED AND HAVING NO BED WHICH MR BAILEY SAYS HE NEVER MINDED BECAUSE HE HAD WHAT HE THOUGHT WERE PRINCIPLES AND HE WASN'T GOING TO SELL THEM OUT FOR A MEAL CONTRASTS LIKE THIS ARE EDITORIAL COMMENT ENOUGH AS THE FILMMAKERS SEEM TO HAVE UNDERSTOOD 9303220150 930322 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED 13 NEW LISTINGS ALL INITIAL PUBLIC OFFERINGS THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 14 NEW LISTINGS INCLUDING 12 INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS BOTH INITIAL OFFERINGS THE BIG BOARD LISTED THE FOLLOWING INITIAL PUBLIC OFFERINGS NUVEEN INSURED CALIFORNIA PREMIUM INCOME MUNICIPAL FUND 2 INC CHICAGO A CLOSEDEND MANAGEMENT INVESTMENT COMPANY UNDER NCL AMERICAN STRATEGIC INCOME PORTFOLIO INC MINNEAPOLIS A CLOSEDEND MANAGEMENT INVESTMENT COMPANY UNDER CSP CITIZENS CORP HOWELL MICH AN INSURANCE UNDERWRITER UNDER CZC DELAWARE GROUP DIVIDEND AND INCOME FUND INC PHILADELPHIA A CLOSEDEND MANAGEMENT INVESTMENT COMPANY UNDER DDF ETHAN ALLEN INTERIORS INC DANBURY CONN A MANUFACTURER AND RETAILER OF HOME FURNISHINGS UNDER ETH PILLOWTEX CORP DALLAS A DESIGNER MANUFACTURER AND MARKETER OF BEDROOM FURNISHINGS UNDER PTX THE FOLLOWING MUTUAL FUNDS ALSO JOINED THE NEW YORK STOCK EXCHANGE AS INITIAL PUBLIC OFFERINGS TRADING IN SHARES OF BENEFICIAL INTEREST NUVEEN INSURED FLORIDA PREMIUM INCOME MUNICIPAL FUND 2 UNDER NFP NUVEEN INSURED NEW YORK PREMIUM FUND 2 UNDER NYP NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND 2 UNDER NMY NUVEEN MASSACHUSETTS PREMIUM INCOME MUNICIPAL FUND 2 UNDER NMT NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND 2 UNDER NJP NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 UNDER NPY NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND 2 UNDER NPV THE NASDAQ NATIONAL MARKET SYSTEM BEGAN TRADING THE FOLLOWING INITIAL PUBLIC OFFERINGS AVID TECHNOLOGY INC TEWKSBURY MASS A SUPPLIER OF DIGITAL VIDEO AND AUDIO EDITING SYSTEMS UNDER AVID BROCK CANDY CO CHATTANOOGA TENN MAKER AND SELLER OF CANDIES AND FRUIT SNACKS UNDER BRCKA ENERGY BIOSYSTEMS CORP THE WOODLANDS TEXAS A DEVELOPER OF BIOTECHNOLOGY PROCESSES FOR USE IN THE FOSSILFUEL INDUSTRY UNDER ENBC SOUTHERN ENERGY HOMES INC ADDISON ALA A HOME BUILDER UNDER SEHI INTUIT INC MENLO PARK CALIF A PROVIDER OF SOFTWARE PRODUCTS AIMED AT COMMONLY PERFORMED FINANCIAL TASKS UNDER INTU ASCCO CORP MARLBORO MASS A MAKER OF AUTOMATED DEVICES TO TEST INTEGRATED CIRCUITS UNDER ASEC MOTHER WORKS INC PHILADELPHIA A SPECIALTY RETAILER OF MATERNITY CLOTHING UNDER MWRK PACIFIC SUNWEAR OF CALIFORNIA INC SANTA ANA CALIF A MALLBASED SPECIALTY RETAILER OF YOUNG MEN'S EVERYDAY CASUAL APPAREL UNDER PSUN SHOE CARNIVAL INC EVANSVILLE IND AN OPERATOR OF A CHAIN OF SPECIALTY SHOE STORES UNDER SCVL WALL DATA INC REDMOND WASH A SOFTWARE PRODUCTS AND ASSOCIATED THE FOLLOWING COMPANIES FORMERLY TRADED ON THE NASDAQ SMALLCAP MARKET MOVE UP TO THE NATIONAL MARKET SYSTEM AIR SENSORS INC SEATTLE A MAKER OF EQUIPMENT TO ALLOW INTERNAL COMBUSTION ENGINES TO OPERATE ON ALTERNATIVE FUELS UNDER ARSN AND WARRANTS UNDER ARSNW LOMAK PETROLEUM INC FORT WORTH TEXAS AN OIL AND GAS CONCERN UNDER LOMK THE AMERICAN STOCK EXCHANGE SAID IT BEGAN TRADING SHARES OF BENEFICIAL INTEREST OF THE FOLLOWING MUTUAL FUNDS AS INITIAL PUBLIC OFFERINGS NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND 2 UNDER NMH NUVEEN WASHINGTON PREMIUM INCOME MUNICIPAL FUND 2 UNDER NPW THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON COMVERSE TECHNOLOGY INC WOODBURY NY A COMPUTER AND TELECOMMUNICATIONS SERVICES CONCERN AND JONES APPAREL GROUP INC BRISTOL PA A WOMEN'S SPORTSWEAR CONCERN THE NEW YORK STOCK EXCHANGE BEGAN TRADING OPTIONS ON THE FOLLOWING NEW LINE CINEMA CORP JONES APPAREL GROUP INC AND THE STOP & SHOP COS THE AMERICAN STOCK EXCHANGE BEGAN TRADING OPTIONS ON NEW LINE CINEMA CORP THE AMERICAN STOCK EXCHANGE ALSO BEGAN TRADING LONGTERM EQUITY ANTICIPATION SECURITIES OR LEAPS WHICH HAVE LONGER EXERCISE PERIODS THAN REGULAR OPTIONS ON AMERICAN BARRICK RESOURCES CORP 9303220149 930322 POLITICS & POLICY REICH TO NAME IRS EXPERT AS PENSION AGENCY HEAD WASHINGTON LABOR SECRETARY ROBERT REICH IS EXPECTED TO NAME MARTIN SLATE AN EMPLOYEE BENEFITS EXPERT AT THE INTERNAL REVENUE SERVICE TO HEAD THE PENSION BENEFIT GUARANTY CORP MR SLATE WOULD BECOME PBGC EXECUTIVE DIRECTOR AT A TIME WHEN THE AGENCY FACES A GROWING DEFICIT CAUSED BY THE COLLAPSE OF SOME SEVERELY UNDERFUNDED CORPORATE PENSION FUNDS INSURED BY THE PBGC THE CLINTON ADMINISTRATION IS TUSSLING WITH HOW TO STANCH THAT DEFICIT ABOUT 25 BILLION AT LATEST COUNT MR SLATE WHO HAS BEEN DIRECTOR OF THE IRS EMPLOYEE PLANS DIVISION SINCE 1986 HAS BEEN TOUGH ON EMPLOYERS SEEKING WAIVERS FROM FEDERAL REQUIREMENTS FOR MINIMUM CORPORATE CONTRIBUTIONS TO PENSION PLANS EVEN THOSE MINIMUM REQUIREMENTS ALLOW EMPLOYERS TO FALL FAR SHORT OF FULLY FUNDING THE PLANS CONSIDERING THE PLANS' OBLIGATIONS TO MAKE RETIREMENT PAYMENTS THE IRS EXERTS CONSIDERABLE INFLUENCE OVER PENSION PLANS AND OTHER EMPLOYEE BENEFIT PLANS USING ITS POWER TO IMPOSE TAX PENALTIES ON EMPLOYERS THAT DON'T MEET THE REQUIREMENTS OF TAX AND PENSION LAWS THE PBGC IS AN EXECUTIVE BRANCH AGENCY OUTSIDE THE LABOR DEPARTMENT BUT THE LABOR SECRETARY IS CHAIRMAN OF THE AGENCY'S THREEMEMBER BOARD THE OTHER BOARD MEMBERS ARE THE TREASURY AND COMMERCE SECRETARIES 9303220148 930322 BRITISH RETAIL PRICES RISE LONDON BRITAIN'S RETAIL PRICE INDEX IN FEBRUARY ROSE 18 FROM THE YEAR BEFORE AND WAS UP 07 FROM JANUARY THE CENTRAL STATISTICAL OFFICE SAID THE UNDERLYING INDEX WHICH EXCLUDES MORTGAGEINTEREST PAYMENTS ROSE 34 ON THE YEAR AND WAS UP 07 ON THE MONTH A SPOKESMAN FOR THE CSO SAID THE MAIN FACTOR BEHIND THE MONTHLY RISE IN RETAIL PRICES WAS A SHARPER INCREASE IN FOOD PRICES THAN SEEN A YEAR EARLIER HE ALSO SAID FEBRUARY SAW BIGGER RISES IN THE PRICES OF GASOLINE CLOTHING AND LEISURE GOODS THAN A YEAR AGO 9303220147 930322 ECONOMY CONSUMER INDEX FELL AGAIN IN EARLY MARCH SOME ANALYSTS REPORT WASHINGTON THE UNIVERSITY OF MICHIGAN'S CONSUMER CONFIDENCE INDEX SLIPPED AGAIN IN EARLY MARCH ACCORDING TO FINANCIAL MARKET ANALYSTS WHO HAVE SEEN THE REPORT THE UNIVERSITY'S INDEX WHICH WAS ABOVE 90 AT THE END OF LAST YEAR FELL TO 843 IN EARLY MARCH FROM 866 IN FEBRUARY THE ANALYSTS SAID THE UNIVERSITY ONLY DISCLOSES ITS LATEST FINDINGS TO SUBSCRIBERS THE READING OF CONSUMER EXPECTATIONS FOR THE FUTURE A COMPONENT IN THE GOVERNMENT'S INDEX OF LEADING ECONOMIC INDICATORS SLIPPED TO 742 IN MARCH FROM 806 IN FEBRUARY THE CONSUMERS' READING OF CURRENT ECONOMIC CONDITIONS INCREASED TO 1001 FROM 96 THE CONFERENCE BOARD PUBLISHES THE RESULTS OF ITS CONSUMER CONFIDENCE POLLING ON MARCH 30 9303220146 930322 FOUR US COMPANIES SEEK TO BE DELISTED FROM TOKYO EXCHANGE SPECIAL TO THE WALL STREET JOURNAL TOKYO FOUR US COMPANIES ANNOUNCED THEY WILL WITHDRAW THEIR SHARES FROM THE TOKYO STOCK EXCHANGE BECAUSE OF THE RELATIVELY HIGH COSTS AND LOW BENEFITS OF REMAINING LISTED GEORGIAPACIFIC CORP FIRST CHICAGO CORP WASTE MANAGEMENT INC AND SCECORP INDEPENDENTLY CITED LOW TURNOVER IN TOKYO TRADING AND COSTCUTTING PLANS IN OFFICIAL FILINGS WITH THE BOURSE FIVE OTHER FOREIGN FIRMS INCLUDING GENERAL MOTORS CORP LEFT THE EXCHANGE LAST SEPTEMBER NONETHELESS THE EXCHANGE'S FIRST SECTION ACTIVITY HAS BEEN PICKING UP RECENTLY WITH VOLUME HITTING AN ESTIMATED 620 MILLION SHARES FRIDAY AFTER MONTHS OF DAILY VOLUMES BELOW 300 MILLION SHARES OFFICIALS OF THE TOKYO EXCHANGE SAID THE DELISTING WILL TAKE PLACE JUNE 30 PENDING APPROVAL BY THE MINISTRY OF FINANCE AN OFFICIAL OF ONE OF THOSE FIRMS THAT LEFT IN SEPTEMBER SAID THAT LISTINGRELATED COSTS ARE MORE THAN 10 TIMES THOSE ON OTHER WORLD STOCK MARKETS THE FIRMS THAT MADE THEIR ANNOUNCEMENTS FRIDAY ALSO POINTED TO LOW TURNOVER AND THE SMALL NUMBER OF HOLDERS OF THEIR STOCK IN TOKYO SCECORP AN ELECTRIC POWER CONCERN BASED IN ROSEMEAD CALIFORNIA SAID THAT ON AVERAGE 6100 OF ITS SHARES CHANGE HANDS DAILY DOWN FROM 1330000 A DAY IN 1987 ITS FIRST YEAR OF JAPANESE TRADING IT SAID THAT A TOTAL OF 226 STOCKHOLDERS CONTROL ITS 76200 ISSUES ON THE TOKYO BOURSE 9303220145 930322 ADVERTISING MARKET FOR PRICEY SUNGLASSES HEATS UP BY KEVIN GOLDMAN LET THE SUN SHINE IN DUDE WINTER SLIPPED AWAY SATURDAY AND THE COMPETITION IS HEATING UP IN THE MARKET FOR PRICEY FASHIONABLE AND OHSOCOOL SUNGLASSES THESE AREN'T THE KIND SOLD ON STREET CORNERS BY VENDORS OPERATING FROM SUITCASES THESE SHADES SELL FOR 80 TO 275 AND BEYOND SCRATCH THE LENSES ON THESE BABIES AND YOU'RE SURE TO CRY BUT LAST YEAR CLOUDS OVERSHADOWED THE MARKET AS SALES DROPPED FOR THE FIRST TIME EVER NOW THREE MAJOR BRANDS MARKET LEADER RAYBAN CONTENDER SERENGETI AND NEWCOMER NIKON ARE REVVING UP THEIR AD BUDGETS TO LAUNCH NEW CAMPAIGNS IN A RENEWED BATTLE FOR MARKET SHARE AT THE HIGH END OR SHADES PRICED MORE THAN 30 EACH IN A DISTINCTIVE DEPARTURE NEW ADS FOR RAYBAN SHIFT SUNGLASSES FROM A FOREMOST FASHION ACCESSORY TO A CRITICAL SUNSHIELD THAT CAN KEEP THE TANNED AND FIT SAFE FROM NASTY AND HIGHLY DAMAGING ULTRAVIOLET WAVES SERENGETI HAS SET ITS SIGHTS IN THE OPPOSITE DIRECTION SHELVING PREVIOUS PRINT ADS THAT PLAYED UP SPECTRAL CONTROL FILTERS AND OTHER TECHNOGIZMOS IN FAVOR OF THE SEXY SELL AND NIKON IS JUST TRYING TO KNOCK ON THE DOOR POSING SHADES AS ACTIVE WEAR SALES FIGURES SHED A LITTLE LIGHT ON THE UPSCALE MARKET'S PROBLEM AFTER GROWING IMPRESSIVELY TO 696 MILLION IN 1988 FROM 361 MILLION IN 1985 AND ACCELERATING THROUGH 1991 TO 15 BILLION SALES OF PRICEY SHADES FELL ALMOST 36 LAST YEAR TO 961 MILLION EVERYBODY WAS MORE VALUECONSCIOUS LAST YEAR AND NERVOUS ABOUT THE ECONOMIC FUTURE SAYS MARGE AXELRAD EDITORIAL DIRECTOR OF JOBSON PUBLISHING'S OPTICAL GROUP OF TRADE MAGAZINES ALL THE MORE REASON FOR MAKERS TO STRESS ADDITIONAL VALUES SUCH AS PROTECTION WHILE NOT STRAYING TOO FAR FROM HOW GOOD THE PRODUCT LOOKS ON THE BEACH FOR INSTANCE RAYBAN AND ITS AD AGENCY GREY ADVERTISING ARE BEGINNING TO PLAY UP THE SAVEYOUREYES ANGLE WHILE GETTING ACROSS THE POINT THAT YOU COULD ALSO LOOK COOL AT THE SAME TIME MOST PEOPLE BUY THE SUNGLASSES THAT WILL ENHANCE THEIR APPEARANCE CONCEDES DENISE O'BLENESS GREY'S CREATIVE DIRECTOR ON THE RAYBAN ACCOUNT BUT YOU CAN'T IGNORE THE PROTECTION MESSAGE NEW TELEVISION SPOTS ARE SCHEDULED TO PREMIERE NEXT MONTH ON THE MAJOR BROADCAST NETWORKS AND ALSO WILL BE SHOWN DURING ABC'S HIP LIMITEDRUN SERIES WILD PALMS BASED ON A COMIC STRIP IN THE DOWNTOWN FASHION MAGAZINE DETAILS THE ADS SHOW SPICY SCENES OF A SENSUOUS YOUNG COUPLE RIDING ON HORSEBACK WHO AFTER DISMOUNTING KISS WILDLY THE VOICEOVER SPOKEN UNDER SPANISH GUITAR MUSIC SAYS IT LIBERATES THE SOUL BLAZING TORRENT OF PURE ENERGY ITS RAYS POUR DOWN FROM THE HEAT OF THE SKY THE COMMERCIAL ENDS WITH A LOVEFEST OF THE SUN REVEL IN IT A WOMAN'S VOICE QUICKLY ADDS WITH THE PROTECTION OF RAYBAN SUNGLASSES THE SLOGAN HAVE YOUR DAY IN THE SUN RAYBAN A UNIT OF BAUSCH & LOMB APPROACHED GREY EXECUTIVES WITH THE DESIRE TO CHANGE FROM LAST YEAR WHEN IT SPONSORED THE SUMMER AND WINTER OLYMPICS AND USED ADS FEATURING ATHLETES INCLUDING DAN O'BRIEN AND JANET EVANS MOSTLY THEY SAT AROUND LOOKING GLAMOROUS THE NEW ADS INCLUDE PRINT SHOWING A MODEL AND COPY THAT READS IT AROUSES THE BODY IT TRANSPORTS THE MIND THE SUN THE CAMPAIGN IS THE BOLDEST THING RAYBAN HAS DONE SAYS GRAHAM BUTTON ANOTHER GREY CREATIVE DIRECTOR WHY EXACTLY BECAUSE THE FUN POLICE ARE OUT HE REPLIES YOU CAN'T HAVE SEX BECAUSE IT'S NOT GOOD FOR YOU YOU CAN'T EAT OUT BECAUSE IT'S NOT GOOD FOR YOU AND YOU CAN'T GO IN THE SUN BECAUSE IT'S NOT GOOD FOR YOU WE'RE SAYING IT'S OK TO BE IN THE SUN WITH THE PROPER PROTECTION RAYBAN IS INCREASING AD SPENDING TO 7 MILLION FROM 27 MILLION LAST YEAR IT IS A TESTAMENT TO THE COMING MARKETSHARE BATTLE THAT RAYBAN IS SPENDING MUCH AT ALL THE COMPANY AFTER ALL HAS RECEIVED MOUNDS OF FREE PUBLICITY OVER THE YEARS INCLUDING TOM CRUISE PUTTING THEM ON AND DANCING IN HIS UNDERWEAR IN THE 1982 MOVIE RISKY BUSINESS AS WELL AS JOHN BELUSHI AND DAN AYKROYD DONNING THE SHADES AS THE NASTY AND COLORFUL BLUES BROTHERS BUT RAYBAN IS NO LONGER THE ONLY PAIR IN TOWN BECAUSE MANUFACTURERS RECOGNIZE HOW HOT THE CATEGORY IS EXPENSIVE NONPRESCRIPTION SUNGLASSES HAVE BECOME THE ACCESSORY OF CHOICE SAYS SHARON STONE MARKETING MANAGER OF SERENGETI A UNIT OF CORNING IN THE 1980S SHE SAYS THE FUNKY YET EXCESSIVELY PRICED MERCHANDISE OF THE MOMENT WAS WATCHES NOW PEOPLE WOULD RATHER SPEND MONEY ON ACCESSORIES THAT ARE GOOD FOR THEM SERENGETI'S TECHNICALVALUE PITCH OF THE PAST WAS GOOD AT ATTRACTING OLDER CUSTOMERS READ THAT ANYONE OVER 30 SHE SAYS BUT TO LURE PUPS UNDER 30 SERENGETI IS PUSHING WHIMSY IN ITS NEW TELEVISION AND PRINT ADS WHICH WILL ALSO BREAK NEXT MONTH YOU HAVE TO HAVE A CERTAIN EMOTIONAL APPEAL THAT GOES BEYOND THE RATIONAL SALE SHE EXPLAINS IN ONE SPOT A ZONEDOUT CHAP SITS IN A COMFY CHAIR SURROUNDED BY MASSIVE STEREO SPEAKERS YOU WON'T BELIEVE THE AMAZING CLARITY SHARP DEFINITION RICH CONTRAST THE VOICEOVER SAYS THEN THE TWIST OF COURSE WE'RE TALKING ABOUT THE SUNGLASSES THE AD CONCLUDES WITH THE SLOGAN SET YOUR SIGHTS A LITTLE HIGHER SERENGETI HAS BEEN MANUFACTURING THE HIGHEND SHADES SINCE 1985 A MERE TODDLER COMPARED WITH RAYBAN WHICH HAS BEEN AROUND FOR 55 YEARS BUT IT IS AN ESTABLISHED VETERAN WHEN MEASURED AGAINST NIKON WHICH IS ENTERING ITS SECOND YEAR IN THE CATEGORY NIKON'S SUNGLASSES ARE AS PRICEY AS ITS WELLKNOWN CAMERAS THE SHADES COST 89 TO 275 WE FEEL THERE IS AN OPPORTUNITY FOR THE BRAND SINCE THERE HASN'T BEEN A MAJOR COMPETITOR IN EIGHT YEARS SAYS JEFF TURNER NATIONAL SALES AND MARKETING MANAGER FOR NIKON'S LINE OF SUNGLASSES THIS IS A LOGICAL EXTENSION OF OUR MARKETING WHEN YOU THINK OF NIKON YOU THINK OF CAMERAS AND OPTICS NIKON MUST STILL CRAWL BEFORE IT CAN WALK SAYS MR TURNER SO IT WON'T BE EMPLOYING TELEVISION COMMERCIALS INSTEAD ITS TWO PRINT ADS FEATURING ROCK CLIMBER TODD SKINNER AND SKIER KRISTEN ULMER WILL APPEAR IN APRIL ISSUES OF ESQUIRE DETAILS AND OUTSIDE AS WELL AS NUMEROUS SPORTS PUBLICATIONS PEOPLE ESPECIALLY YOUNG PEOPLE WANT TO EMULATE ATHLETES SAYS MS AXELRAD FROM JOBSON PUBLISHING AND AS LONG AS ATHLETES ARE WEARING EXPENSIVE SUNGLASSES THE CATEGORY WILL PROSPER GLASSES ARE IN AND SUMMER IS JUST AROUND THE CORNER A WILFORD BRIMLEY THE WHITEHAIRED WALRUSMUSTACHED SPOKESMAN FOR QUAKER OATS CO FILED A 10 MILLION LAWSUIT AGAINST HARDEE'S FOOD SYSTEMS INC AND ITS AD AGENCY WPP GROUP'S OGILVY & MATHER OVER COMMERCIALS THAT MR BRIMLEY SAYS ABUSED HIS PERSONAL IDENTITY BY USING SOUNDALIKE AND LOOKALIKE ACTORS AT ISSUE ARE COMMERCIALS FOR HARDEE'S FRISCO SANDWICHES INTRODUCED LAST YEAR WITH COMMERCIALS SET IN SAN FRANCISCO MR BRIMLEY CONTENDS THAT THE ACTOR WHO DELIVERS THE SANDWICH PITCH WAS DELIBERATELY CHOSEN TO APPEAR IN THE SPOT BECAUSE HE LOOKS STRIKINGLY LIKE AND COULD EASILY BE TAKEN FOR WILFORD BRIMLEY DRESSED IN A CABLE CAR CONDUCTOR'S UNIFORM THE SUIT ALSO CONTENDS THAT A SECOND VOICE SOUNDING LIKE MR BRIMLEY'S WAS DUBBED IN TO SOUND LIKE MR BRIMLEY'S CREAKY CADENCE THE SUIT SAYS THE SPOTS CREATE THE IMPRESSION THAT MR BRIMLEY ENDORSES THE HARDEE'S FARE HARDEE'S AND OGILVY SAID THEY HADN'T REVIEWED THE SUIT AND SO DECLINED TO COMMENT THE SUIT WAS FILED IN US DISTRICT COURT IN NEW YORK PEPSI MEDIA THE CANADIAN OPERATIONS OF PEPSICO CONSOLIDATED ALL OF ITS TELEVISION MEDIA BUYING AT THE MCKIM MEDIA GROUP PART OF BBDO'S CANADIAN OFFICE MCKIM BAKER LOVICK THE ASSIGNMENT INCLUDING PEPSICOLA CANADA KENTUCKY FRIED CHICKEN PIZZA HUT AND HOSTESS FRITOLAY WAS PREVIOUSLY SPLIT AMONG SEVERAL AGENCIES BILLINGS COULDN'T BE DETERMINED BBDO IS A UNIT OF OMNICOM GROUP WHO'S NEWS LORD DENTSU & PARTNERS NEW YORK HIRED ANDREW S BIELANSKI AS EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF ITS NEW YORK OFFICE HE SUCCEEDS ROBERT HIGH IN THE POST MR HIGH WAS NAMED SENIOR ACCOUNT DIRECTOR AND REMAINS AN EXECUTIVE VICE PRESIDENT MR BIELANSKI 41 YEARS OLD WAS PREVIOUSLY AN EXECUTIVE VICE PRESIDENT AND REGIONAL MANAGING DIRECTOR IN EASTERN EUROPE AT D'ARCY MASIUS BENTON & BOWLES THE LOWE GROUP A UNIT OF INTERPUBLIC GROUP OF COS NAMED CHRIS HARRIS SENIOR VICE PRESIDENT AND CLIENT SERVICES DIRECTOR AT ITS EUROPEAN OPERATIONS MR HARRIS 34 WAS PREVIOUSLY HEAD OF ACCOUNT MANAGEMENT AT BARTLE BOGLE HEGARTY LONDON SETTLEMENT PERDUE FARMS INC AND EMPIRE KOSHER POULTRY INC SAID THEY HAVE SETTLED THE LAWSUIT PERDUE FILED AGAINST EMPIRE EARLIER THIS MONTH CONCERNING ADS EMPIRE RAN THAT PARODIED PERDUE'S SLOGAN IT TAKES A TOUGH MAN TO MAKE A TENDER CHICKEN EMPIRE AGREED TO DROP THE SLOGAN IT TAKES AN EVEN TOUGHER MAN TO MAKE A KOSHER CHICKEN AND PERDUE DROPPED THE SUIT BOTH SIDES SAID 9303220144 930322 DELTA SAYS PAY CUT OFFER FROM PILOTS ISN'T ENOUGH ATLANTA DELTA AIR LINES SAID AN OFFER FROM ITS AIR LINE PILOTS ASSOCIATION MEMBERS THAT INCLUDES A ONEYEAR 5 PAY CUT FOR MOST OF THE CARRIER'S PILOTS DOESN'T GO FAR ENOUGH PILOT PARTICIPATION AT THE LEVEL AND FOR THE DURATION OFFERED ON MARCH 16 BY ALPA IS UNFORTUNATELY MORE COSMETIC THAN REAL OVER THE LONG TERM SAID HD GREENBERG DELTA'S VICE PRESIDENT OF FLIGHT OPERATIONS IN A TAPERECORDED MESSAGE TO EMPLOYEES FRIDAY DELTA HAS BEEN SEEKING CONCESSIONS FROM ITS PILOTS SINCE LAST FALL AND RECEIVED THEIR ANSWER LAST WEEK OF THE ONEYEAR WAGE ROLLBACK EXCEPT FOR PILOTS WITH LESS THAN THREE YEARS AT DELTA AND CHANGES IN SOME BENEFITS FOR A ONEYEAR SAVINGS OF 65 MILLION IN RETURN THE PILOTS ASKED DELTA NOT TO SWITCH MORE FLIGHTS TO ITS COMMUTER AFFILIATES AND SAID THAT PAY SCALES WOULD SNAP BACK TO PREVIOUS LEVELS IN THE EVENT OF FURLOUGHS DELTA HAD BEEN LOOKING FOR CONCESSIONS MORE IN LINE WITH WHAT WAS IMPOSED ON THE REST OF DELTA'S EMPLOYEES WHO TOOK AN INDEFINITE 5 PAY CUT GAVE UP VACATION TIME AND TOOK STEEPER MEDICAL CUTS THAN WHAT THE PILOTS ARE OFFERING 9303220143 930319 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303220142 930322 GERMAN NEWCAR REGISTRATIONS FRANKFURT NEW PASSENGERCAR REGISTRATIONS IN GERMANY FELL 25 IN FEBRUARY FROM A YEAR EARLIER BUT INCHED 01 HIGHER FROM JANUARY ACCORDING TO MONTHLY STATISTICS FROM THE FEDERAL MOTOR VEHICLE OFFICE NEW CAR REGISTRATIONS ROSE 160 TO 238406 IN FEBRUARY FROM JANUARY WITH 189516 IN WESTERN GERMANY AND 48890 IN EASTERN GERMANY NEW CAR REGISTRATIONS FELL 78396 FROM 316803 IN FEBRUARY 1992 WITH A DROP OF 70988 CARS IN WESTERN GERMANY AND A DECREASE OF 7400 IN EASTERN GERMANY THE AGENCY SAID IN THE COMBINED TWOMONTH COMPARISON REGISTRATIONS FELL 26 TO 476652 FROM THE SAME JANUARYFEBRUARY PERIOD A YEAR EARLIER REGISTRATIONS OF NEW TRUCKS IN GERMANY DROPPED 68 IN THE MONTH TO 15460 THE AGENCY SAID 9303220141 930322 MCDERMOTT INC DEBT ISSUES NEW ORLEANS MCDERMOTT INC A UNIT OF MCDERMOTT INTERNATIONAL INC SAID IT WILL REDEEM EFFECTIVE APRIL 19 SEVERAL DEBT ISSUES ITS 9625 SINKING FUND DEBENTURES DUE MARCH 15 2004 WILL BE REDEEMED AT 102795 ITS 10 SUBORDINATED DEBENTURES DUE APRIL 1 2003 WILL BE REDEEMED AT 1000 AND ITS 102 SINKING FUND DEBENTURES DUE DEC 1 1999 AT 100970 IN ADDITION THE UNIT SAID IT INTENDS TO REDEEM ITS 1225 SENIOR SUBORDINATED NOTES DUE JUNE 1 1998 ON JUNE 1 AT 104590 MCDERMOTT INTERNATIONAL IS A WORLDWIDE ENERGY SERVICES COMPANY 9303220140 930322 THYSSEN'S CHAIRMAN WARNS OF STEEL LOSSES SPECIAL TO THE WALL STREET JOURNAL DUISBURG GERMANY THYSSEN AG CHAIRMAN HEINZ KRIWET WARNED THAT THE GROUP'S LOSSES FROM STEEL PRODUCTION HAVE CONTINUED TO ACCELERATE THE RECENTLY MERGED THYSSEN STAHL AG AND THYSSEN EDELSTAHL AG STEEL AND SPECIALTYSTEEL OPERATIONS HAVE TOGETHER REGISTERED INCREASING LOSSES SINCE LAST SUMMER MR KRIWET SAID ADDING THAT THIS DEVELOPMENT HAS CLEARLY INTENSIFIED IN THE FIRST FIVE MONTHS OF THE NEW FISCAL YEAR AND MUCH MORE STRONGLY THAN IS REVEALED BY THE DROP IN STEEL SALES HE SAID STEEL SALES WERE 20 LOWER IN THE FIRST FIVE MONTHS OF THE FISCAL YEAR THAT BEGAN OCT 1 THAN IN THE YEAREARLIER PERIOD THE THYSSEN CHAIRMAN SAID THE GROUP PLANNED TO REDUCE TOTAL EMPLOYMENT IN STEEL BY 9000 WORKERS IN FISCAL 1993 AND 1994 TOGETHER WITH THE LARGER PART OF THE CUTBACKS COMING IN THIS FISCAL YEAR HE SAID A REDUCTION OF SOME 2800 HAD BEEN ACHIEVED BY THE END OF FEBRUARY THIS NUMBER IS AN INCREASE FROM PREVIOUS ESTIMATES OF 7000 OR 8000 STEEL JOBS TO BE LOST IN THE PERIOD MR KRIWET SAID THAT STEEL ROLLINGMILL TRAIN CAPACITY OF NEARLY A MILLION METRIC TONS A YEAR WAS BEING TAKEN OUT OF PRODUCTION WHICH HE SAID AMOUNTED TO A CAPACITY REDUCTION IN LONG PRODUCTS OF NEARLY 50 9303220139 930322 TRAFALGAR HOUSE FACES POSSIBLE LEGAL ACTION OF '91 DAVY PURCHASE SPECIAL TO THE WALL STREET JOURNAL LONDON UK CONGLOMERATE TRAFALGAR HOUSE PLC CONFIRMED THAT IT'S FACING POSSIBLE LEGAL ACTION FOR NOT PAYING A SECOND TRANCHE TO DAVY CORP SHAREHOLDERS AFTER ACQUIRING THE CONTRACTOR IN 1991 TRAFALGAR HOUSE SAID THAT TWO FORMER DAVY SHAREHOLDERS CLAIM THEY WERE MISLED OVER THE TERMS OF THE SECOND PAYMENT AND THAT THEY HAVE THREATENED LEGAL ACTION IN AN EFFORT TO GET COMPENSATION FOR LOSSES ESTIMATED AT 19 MILLION 28 MILLION TRAFALGAR HOUSE SAID THAT THERE'S NO SUBSTANCE TO THE CLAIMS AND THAT IT WILL CONTEST THEM WITH THE UTMOST VIGOR UK PRESS REPORTS SAID THE TWO FORMER SHAREHOLDERS INVOLVED ARE BEAR STEARNS & CO THE US SECURITIES FIRM AND GRUSS PARTNERS A US INVESTMENT COMPANY TRAFALGAR HOUSE'S 114 MILLION OFFER FOR DAVY WAS IN TWO INSTALLMENTS ONE OF 50 PENCE A SHARE AND ANOTHER OF 45 PENCE THE GROUP SAID IT WOULD PAY THE SECOND INSTALLMENT IF DAVY'S OFFSHORE UNIT WAS ALLOWED TO USE A LETTER OF CREDIT RELATING TO AN OFFSHORERIG CONVERSION CONTRACT THE CONTRACT SUBSEQUENTLY RAN INTO DELAYS PREVENTING THE OFFSHORE UNIT FROM DRAWING ON THE FACILITY LAST YEAR THE UK TAKEOVER PANEL DISMISSED AN APPEAL FROM FRANCE'S SPIE BATIGNOLLES SA THAT IT HAD BEEN MISLED AS TO THE TWOPART STRUCTURE OF THE OFFER THE PANEL RULED THAT THE TERMS OF THE BID WERE MADE CLEAR WHEN IT WAS LAUNCHED 9303220138 930322 WHO'S NEWS GENRAD'S ANDERSON IS NAMED CHAIRMAN CONCORD MASS ROBERT E ANDERSON 52YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GENRAD INC WAS NAMED CHAIRMAN AND THE COMPANY HAS BEGUN RECRUITING HIS SUCCESSOR AS PRESIDENT AND CHIEF EXECUTIVE CHAIRMANSHIP OF THE COMPANY WHICH MAKES TEST EQUIPMENT FOR SEMICONDUCTORS HAD BEEN VACANT SINCE MAY 1992 WHEN WILLIAM R THURSTON REACHED GENRAD'S MANDATORY RETIREMENT AGE OF 70 AND RESIGNED THE COMPANY ALSO ANNOUNCED THAT IT EXPECTS TO BE PROFITABLE IN THE YEAR THAT BEGAN JAN 3 DUE TO AN IMPROVED PRODUCT MIX AND BETTER FINANCIAL CONTROLS IN ITS PREVIOUS YEAR GENRAD HAD A LOSS OF 74 MILLION OR 42 CENTS A SHARE ON REVENUE OF 1427 MILLION SEPARATELY THE COMPANY SAID MICHAEL SCOTT MORTON 56 WHO WAS NAMED A DIRECTOR MARCH 1 WILL BE LEAVING THE BOARD DUE TO INCREASED RESPONSIBILITIES AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S SLOAN SCHOOL OF MANAGEMENT WHERE HE IS THE JAY W FORRESTER PROFESSOR OF MANAGEMENT HIS DEPARTURE REDUCES THE NUMBER OF BOARD MEMBERS TO SIX 9303220137 930322 WHO'S NEWS COMERICA'S MACDONALD PLANS TO RETIRE IN JUNE DETROIT GERALD V MACDONALD 54 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OF COMERICA INC SAID HE PLANS TO RETIRE JUNE 30 ONE YEAR EARLIER THAN HE HAD PLANNED AS PART OF A MERGER ACCORD COMPLETED LAST YEAR BETWEEN COMERICA AND MANUFACTURERS NATIONAL CORP MR MACDONALD SAID HE WOULD RETIRE IN JUNE 1994 HE WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MANUFACTURERS PRIOR TO THE MERGER THIS IS THE CORRECT TIME FOR ME TO MOVE TO THE NEXT STAGE OF MY LIFE AND TO ITS NEW CHALLENGES AND OPPORTUNITIES MR MACDONALD SAID EUGENE A MILLER 55 WAS APPOINTED TO SUCCEED MR MACDONALD AS CHAIRMAN AND CHIEF EXECUTIVE OF COMERICA WHICH WAS ALSO PART OF THE MERGER AGREEMENT MR MILLER CURRENTLY IS PRESIDENT OF THE HOLDING COMPANY AND CHAIRMAN AND CHIEF EXECUTIVE OF COMERICA BANK MICHAEL T MONAHAN 54 PRESIDENT OF COMERICA BANK SUCCEEDS MR MILLER AS PRESIDENT OF THE HOLDING COMPANY MR MONAHAN ALSO WAS NAMED TO COMERICA'S BOARD INCREASING THE SIZE OF THE BOARD TO 15 BUT WILL CONTINUE AS PRESIDENT OF COMERICA BANK 9303220136 930322 PEPPERAND SALT IS PLOTTED TO THE SECOND DROP EVERYTHING AND GET IN HERE BUT HISTORY SHOWS WHAT THE MESSENGER KNOWS HE'S OFTEN BLAMED FOR THE MESSAGE 9303220135 930322 ECONOMY CLINTON'S PLAN FOR ECONOMY GOES TO SENATE BIG CHALLENGES LIE AHEAD FOR AMBITIOUS PACKAGE APPROVED BY THE HOUSE BY JOHN HARWOOD AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S AMBITIOUS ECONOMIC PACKAGE WHICH CLEARED THE HOUSE LARGELY UNSCATHED FACES TOUGHER CHALLENGES THIS WEEK IN THE SENATE CONSERVATIVE SENATE DEMOCRATS AND REPUBLICANS WILL CONTINUE TO TARGET ELEMENTS OF THE ADMINISTRATION'S DEFICITREDUCTION PROPOSALS AND SEEK TO SCALE BACK THE 163 BILLION STIMULUS SPENDING PACKAGE BUT UNDER SENATE RULES THEY WILL HAVE FAR GREATER PARLIAMENTARY FREEDOM OF MANEUVER THAN DID THEIR HOUSE COUNTERPARTS MEANWHILE THE DEEPENING RUSSIAN POLITICAL CRISIS HAS STRENGTHENED OPPOSITION TO MR CLINTON'S PROPOSED CUTS IN THE PENTAGON BUDGET WE'RE MOVING TOO RAPIDLY ON DEFENSE CUTS SEN SAM NUNN CHAIRMAN OF THE SENATE ARMED SERVICES COMMITTEE DECLARED YESTERDAY ON NBCTV'S MEET THE PRESS THE INFLUENTIAL GEORGIA DEMOCRAT PLANS TO OFFER AN AMENDMENT TO RESTORE SOME CUTS IF PROMISED SAVINGS DON'T MATERIALIZE FROM A PAY FREEZE LOW INFLATION AND MANAGEMENT REFORM EVEN AS PRESIDENT CLINTON CELEBRATED IMPRESSIVE INITIAL VICTORIES IN THE HOUSE HE WAS MINDFUL THAT HE NEEDS TO SUSTAIN HIS POLITICAL MOMENTUM MAKE NO MISTAKE I KNOW THAT THERE ARE MANY ROADBLOCKS AHEAD THE PRESIDENT TOLD BUSINESS LEADERS FRIDAY IN ATLANTA BEFORE COMPLETING ACTION ON THEIR VERSION OF THE CLINTON BUDGET THIS WEEK SENATE DEMOCRATIC LEADERS MUST ENDURE A STRING OF AMENDMENTS FROM MEMBERS OF BOTH PARTIES AMONG THE MOST DIFFICULT POLITICALLY TO FEND OFF WILL BE A GOP MOVE TO STRIP THE PRESIDENT'S PROPOSED TAX INCREASE ON THE MOST AFFLUENT SOCIAL SECURITY RECIPIENTS THE PLAN HAS DISCOMFITED SOME OF THE 22 DEMOCRATS FACING REELECTION IN 1994 THOUGH THE WHITE HOUSE IS RESISTING CHANGES DEMOCRATIC LEADERS MAY BE FORCED TO RAISE THE INCOME THRESHOLDS FOR THE INCREASE TO HOLD THEIR PARTISAN MAJORITY AS CURRENTLY PROPOSED THE TAX BOOST WOULD AFFECT INDIVIDUALS WITH INCOME OF 25000 AND COUPLES WITH INCOME OF 32000 STILL EVEN SENATE REPUBLICAN LEADER ROBERT DOLE CONCEDED YESTERDAY IN AN INTERVIEW ON CNN'S NEWSMAKER SUNDAY THAT MR CLINTON'S BUDGET WOULD PASS WITHOUT MAJOR CHANGES MORE LIKELY ARE ADJUSTMENTS TO THE STIMULUS PACKAGE NOW THE LIGHTNING ROD FOR CONSERVATIVE COMPLAINTS THAT MR CLINTON HASN'T SHOWN SUFFICIENT COMMITMENT TO REDUCING SPENDING THE SENATE APPROPRIATIONS COMMITTEE WILL TAKE UP THE HOUSEPASSED BILL THIS WEEK POSSIBLY AS EARLY AS TOMORROW WORRIED ABOUT POSSIBLE RESISTANCE IN HIS OWN PARTY CHAIRMAN ROBERT BYRD HAS SPOKEN TO SENIOR COMMITTEE REPUBLICANS ABOUT HELPING HIM BRING THE MEASURE TO THE FLOOR GIVEN THE BIPARTISAN TRADITIONS IN THE COMMITTEE THE WEST VIRGINIA DEMOCRAT IS EXPECTED TO PREVAIL MR BYRD STRONGLY DEFENDED THE INVESTMENT PACKAGE LAST WEEK BUT IT REMAINS UNDER PRESSURE FROM CONSERVATIVE AND MODERATE DEMOCRATS SEN HERBERT KOHL D WIS MAY ATTRACT REPUBLICAN SUPPORT FOR AN AMENDMENT THAT WOULD CHARACTERIZE ONLY HALF OF THE 163 BILLION PACKAGE AS EMERGENCY SPENDING AND FORCE OFFSETTING BUDGET CUTS TO FINANCE THE REMAINDER HOUSE LEADERS USED THEIR POWER TO PREVENT CONSERVATIVE DEMOCRATS FROM OFFERING A SIMILAR AMENDMENT LAST WEEK SENATE LEADERS DON'T HAVE THE SAME POWER THOUGH MR KOHL STILL MUST FIND A WAY AROUND A PARLIAMENTARY OBSTACLE THAT MAY REQUIRE 60 VOTES TO BRING HIS AMENDMENT TO THE FLOOR 9303220134 930322 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR THE WEEKEND BLIZZARD THAT PUMMELED THE EAST RECENTLY TOOK ITS TOLL ON AUTO DEALERS WHOSE NORMALLY BUSTLING SHOWROOMS TURNED AS BARREN AS THE ARCTIC TUNDRA BECAUSE OF THE FOUL WEATHER DEALERS PROBABLY LOST THOUSANDS OF CAR SALES IN THE 10DAY MIDMARCH SALES PERIOD SAID LOUIS CRANDALL AN ECONOMIST AT RH WRIGHTSON & ASSOCIATES INC MR CRANDALL ESTIMATES THAT SALES FOR THE 10DAY PERIOD FELL BELOW SIX MILLION AT A SEASONALLY ADJUSTED ANNUAL RATE DOWN FROM A 65MILLION RATE DURING THE PREVIOUS SALES PERIOD THAT WEEKEND WAS A COMPLETE WASHOUT IN TERMS OF CAR SALES HE SAID AUTO PRODUCTION HOWEVER HAS BEEN EDGING UP THE INCREASE IN CAR ASSEMBLIES PROBABLY HELPED BOOST ORDERS FOR DURABLE GOODS BY 25 IN FEBRUARY ACCORDING TO PAUL LALLY ALSO AN ECONOMIST AT RH WRIGHTSON AUTO PRODUCTION ROSE 5 IN FEBRUARY AND 45 IN EARLY MARCH HE SAID AND IF AUTO ORDERS ARE RISING THERE WILL BE PICKUPS IN THE ASSORTED INDUSTRIES THAT FOLLOW SUCH AS RUBBER AND STEEL MR LALLY SAID ALSO AIRCRAFT ORDERS IN FEBRUARY PROBABLY BOUNCED BACK FROM A HUGE DROP IN JANUARY FURTHER IMPROVING THE OUTLOOK FOR DURABLE GOODS ORDERS HE SAID 9303220133 930322 INTERNATIONAL DUTCH INTEND TO SELL PTT POSTAL MONOPOLY TO PUBLIC IN PHASES SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM THE DUTCH CABINET AGREED TO THE PHASED SALE OF THE STATECONTROLLED PTT POSTAL AND TELECOMMUNICATIONS MONOPOLY TO PRIVATE HANDS BEGINNING IN 1994 TRANSPORTATION MINISTER JRH MAIJWEGGEN WHOSE PORTFOLIO INCLUDES THE PTT PLANS TO INTRODUCE LEGISLATION IN PARLIAMENT SHORTLY TO ALLOW FOR THE BOURSE FLOTATION OF A MAJORITY OF THE AGENCY THE MINISTRY SAID THE BILL WILL BE COINTRODUCED BY FINANCE MINISTER WIM KOK THE PTT MONOPOLY WAS TRANSFORMED INTO A JOINT STOCK COMPANY KNOWN AS KONINKLIJKE PTT NEDERLAND NV IN THE LATE 1980S IN PREPARATION FOR AN EVENTUAL BOURSE FLOATATION ALL THE SHARES IN THE COMPANY ARE HELD BY THE TRANSPORTATION MINISTRY THE PTT IS ONE OF THE LAST MAJOR WHOLLY STATEOWNED DUTCH INDUSTRIAL MONOPOLIES IT'S ESTIMATED TO HAVE A TOTAL MARKET VALUE OF BETWEEN 10 BILLION GUILDERS 542 BILLION AND 16 BILLION GUILDERS DEPENDING UPON MARKET FLUCTUATIONS IN COMING YEARS 9303220132 930322 MULTIBANK HOLDERS CLEAR PACT DEDHAM MASS MULTIBANK FINANCIAL CORP SAID ITS STOCKHOLDERS VOTED TO APPROVE THE BANK'S PROPOSED PURCHASE BY BANK OF BOSTON CORP BANK OF BOSTON NEW ENGLAND'S SECONDLARGEST BANK HOLDING COMPANY WITH 32 BILLION IN ASSETS AGREED IN SEPTEMBER TO BUY MULTIBANK IN A STOCK SWAP VALUED AT 1966 MILLION MULTIBANK A BANK BASED IN DEDHAM MASS WITH 25 BILLION IN ASSETS ANNOUNCED THAT 7229660 SHARES OR 783 OF MULTIBANK'S TOTAL SHARES OUTSTANDING VOTED FOR THE PURCHASE MORE THAN THE TWOTHIRDS NEEDED FOR APPROVAL THE PURCHASE IS STILL SUBJECT TO REGULATORY APPROVAL WHICH MULTIBANK SAID IT HOPES TO RECEIVE THIS SPRING IN ORDER TO COMPLETE THE TRANSACTION BY MIDYEAR 9303220131 930322 CREDIT RATINGS KEMPER SENIOR DEBT OF ABOUT 176 MILLION RECEIVES DOWNGRADE NEW YORK STANDARD & POOR'S CORP LOWERED ITS RATINGS ON ABOUT 176 MILLION OF SENIOR DEBT ISSUED BY KEMPER CORP A LONG GROVE ILL INSURANCE AND FINANCIALSERVICES CONCERN S&P SAID KEMPER'S TRIPLEBPLUS RATING DOWN FROM SINGLEAMINUS REFLECTS ITS STRONG MARKET POSITION AND BRAND RECOGNITION IN ITS CORE FINANCIAL SERVICES MARKET AS WELL AS A MODERATE RELIANCE ON DEBT NEVERTHELESS THE RATINGS CONCERN SAID THE COMPANY REMAINS SIGNIFICANTLY EXPOSED TO THE COMMERCIAL REAL ESTATE MARKETS WHERE CONTINUED WEAKNESS IS LIKELY TO RESULT IN FURTHER DETERIORATION IN THE PORTFOLIO DESPITE KEMPER'S RESERVES AND WRITEDOWNS FOR REAL ESTATE TOTALING 461 MILLION THE RATING ALSO REFLECTS KEMPER'S ERRATIC EARNINGS PERFORMANCE IN RECENT YEARS S&P SAID AND KEMPER'S EQUITY BASE STANDS TO SUFFER FROM ITS AGREEMENT ANNOUNCED LAST WEEK TO SWAP ITS REINSURANCE AND RISKMANAGEMENT OPERATIONS FOR A 35 STAKE IN THE INSURER HELD BY ITS FORMER PARENT LUMBERMENS MUTUAL CASUALTY CO CITING SIMILAR CONCERNS MOODY'S INVESTORS SERVICE INC SWIFTLY ANNOUNCED LAST WEEK THAT IT WOULD REVIEW KEMPER'S DEBT AND THE FINANCIALSTRENTH RATINGS OF KEMPER'S LIFEINSURANCE UNITS FOR POSSIBLE DOWNGRADE 9303220130 930322 WISER OIL'S TEXAS WELL DALLAS WISER OIL CO SAID ITS WISERHARRELL NO 1 WELL FLOWED AT 160 BARRELS OF CRUDE OIL A DAY AND 80000 CUBIC FEET OF NATURAL GAS A DAY THROUGH A 7/64INCH CHOKE FROM THE CANYON REEF FORMATION FLOWING TUBING PRESSURE WAS 870 POUNDS PER SQUARE INCH WISER HAS A 60 WORKING INTEREST IN THE WELL AND IS THE OPERATOR THE WELL PART OF WISER'S EXPLORATION PROJECT ON THE EASTERN SHELF OF THE PERMIAN BASIN IN WEST TEXAS IS PRODUCING AT THE STATEALLOWABLE RATE OF 120 BARRELS OF OIL PER DAY WISER PLANS AN ADDITIONAL FIVE TO 10 EXPLORATORY WELLS IN THE SCURRY REEF COMPLEX IN ITS 1993 PROGRAM 9303220128 930322 HARRIS CORP GETS CONTRACT MELBOURNE FLA HARRIS CORP SAID IT AND SEVERAL OTHER COMPANIES WERE AWARDED A 47 MILLION CONTRACT TO MODERNIZE THE FEDERAL BUREAU OF INVESTIGATION'S NATIONAL CRIME INFORMATION SYSTEM HARRIS SAID ITS SHARE OF THE CONTRACT WAS MORE THAN HALF BUT IT WOULDN'T BE SPECIFIC THE HARRIS INFORMATION SYSTEMS DIVISION WILL LEAD A TEAM OF COMPANIES TO DEVELOP AND PRODUCE THE REPLACEMENT FOR THE EXISTING 25YEAROLD SYSTEM HARRIS AN ELECTRONICS CONCERN SAID ITS TEAM WHICH WON THE THREEYEAR CONTRACT OVER FIVE OTHER BIDDERS INCLUDES AMDAHL CORP COMPUTER DATA SYSTEMS INC AND PRINTRAK INTERNATIONAL INC IT SAID ABOUT 70 OF THE TECHNOLOGY WILL COME FROM HARRIS 9303220127 930322 CLEAR CHANNEL COMMUNICATIONS SAN ANTONIO TEXAS CLEAR CHANNEL COMMUNICATIONS INC SAID IT FILED A REGISTRATION STATEMENT COVERING 524403 OF THE COMPANY'S COMMON SHARES OWNED BY L LOWRY MAYS ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER THE COMPANY SAID THE SHARES COVERED BY THE STATEMENT REPRESENT STOCK OBTAINED BY MR MAYS UPON EXERCISE OF OPTIONS IN DECEMBER AS PREVIOUSLY REPORTED THESE SHARES ARE ELIGIBLE FOR SALE BY MR MAYS ANY TIME AFTER THE REGISTRATION FILING DATE OF MARCH 18 THE COMPANY SAID 9303220126 930322 CANADIAN BANKS CUT PRIME RATE OTTAWA CANADA'S MAJOR BANKS REDUCED THEIR PRIME LENDING RATES BY A QUARTER OF A PERCENTAGE POINT TO 6 THE LOWEST LEVEL IN 20 YEARS THE REDUCTION WAS PROMPTED BY SLUGGISH LOAN DEMAND AND BY A DECLINE IN SHORTTERM INTEREST RATES IN THE CANADIAN MONEY MARKET THE PRIME RATE IS A BENCHMARK FOR VARIOUS BANK LENDING CHARGES BUSINESS LOAN DEMAND HAS SHOWN ONLY A LIMITED RESPONSE TO THE INTEREST RATE DECLINE THE BANK OF CANADA REPORTED THAT BANK LOANS TO BUSINESS IN THE WEEK ENDED MARCH 10 WERE DOWN 741 MILLION CANADIAN DOLLARS US594 MILLION OR 06 FROM A YEAR EARLIER PERSONAL BANK LOANS WERE UP C114 BILLION OR 17 9303220125 930322 MORTGAGE INDUSTRY ANXIOUSLY AWAITS FINAL WORD ON MILITARY BASE CLOSINGS BY GENE COLTER SPECIAL TO THE WALL STREET JOURNAL NEW YORK NOT ONLY MILITARY PERSONNEL AND THEIR FAMILIES CARE IF MILITARY BASES CLOSE THE HOME MORTGAGE INDUSTRY CARES BECAUSE BASE CLOSINGS MAY LEAD TO LENDERS GETTING STUCK WITH HOMES THEY EITHER CAN'T SELL FOR ENOUGH TO COVER THE BALANCE OF THE MORTGAGE OR CAN'T SELL AT ALL SECRETARY OF DEFENSE LES ASPIN HAS RECOMMENDED THE CLOSING OF 31 MAJOR MILITARY BASES AND MANY SMALLER INSTALLATIONS CONGRESS BY LAW MUST VOTE ON THE CLOSINGS BY SUMMER MOST OF THE BASE CLOSINGS WOULD BE IN THE SOUTH AND ON THE WEST COAST THE MORTGAGE BANKERS ASSOCIATION AN INDUSTRY TRADE GROUP IN WASHINGTON DC THINKS LOANDEFAULT RATES COULD DOUBLE THE NORM IN THOSE AREAS RISING TO 12 OR MORE THE REAL ISSUE FOR US IS SHOULD WE STOP MAKING LOANS IN THESE AREAS NOW SAYS BRIAN CHAPPELLE THE ASSOCIATION'S VICE PRESIDENT YOU'RE IN A ONEINDUSTRY TOWN THE BASE SHUTS DOWN YOU'VE GOT PROBLEMS MILITARY BASES ARE THE PRIME EMPLOYERS IN SOME AREAS ESPECIALLY SMALL CITIES FOR BOTH SERVICE PEOPLE AND CIVILIANS IF BASES CLOSE SOME MORTGAGORS WORRY SOME LOCAL RESIDENTS MAY NOT BE ABLE TO MAKE MORTGAGE PAYMENTS AND WILL LOSE THEIR HOMES MORTGAGE LENDERS SELL LOANS OUTRIGHT TO MORTGAGE SERVICERS OR SIGN UP SUCH A BUSINESS TO COLLECT MORTGAGE PAYMENTS AND PASS THE MONEY ALONG TO THEM OR TO INVESTORS WHO HAVE BOUGHT SECURITIES CREATED BY BUNDLING THE HOME LOANS INTO MORTGAGEBACKED SECURITIES A PERSON IN THE MILITARY WOULD LIKELY FINANCE A HOME PURCHASE WITH A PRIVATE MORTGAGE LOAN GUARANTEED BY THE VETERAN'S ADMINISTRATION IF THE BUYER IS AT RISK OF DEFAULT THE VA WILL HELP THE OWNER SELL OR CONSIDER ACQUIRING THE HOUSE OR IF THE VA DOESN'T CONSIDER THE PROPERTY WORTH HOLDING IT WILL TURN THE HOUSE OVER TO THE MORTGAGOR AND PAY IT A GUARANTY AMOUNT BETWEEN 22500 AND 46000 DEPENDING ON THE SIZE OF THE ORIGINAL LOAN THE LATER OPTION IS KNOWN AS THE NOBID PROCESS BECAUSE THE VA OPTS NOT TO BID FOR THE HOME UNDER FORECLOSURE THE GUARANTY AMOUNT HAS RISEN IN RECENT YEARS IN PART REFLECTING THE VA'S AWARENESS THAT IT MUST OFFER MORTGAGORS MORE OF A PREMIUM FOR ASSUMING THE RISK OF SUCH LOANS WE KNOW THE PROPERTY VALUES WILL DECREASE THAT'S A GIVEN SAYS JUDITH KENT EXECUTIVE VICE PRESIDENT AT AMSOUTH MORTGAGE CO BIRMINGHAM ALA WE WILL END UP WITH NOBIDS FROM THE VA AMSOUTH MORTGAGE OWNS AND SERVICES LOANS THROUGHOUT THE SOUTHEAST IN TOWNS WHERE BASES HAVE BEEN RECOMMENDED FOR CLOSING OUR LOANS IN THOSE AREAS PRIMARILY ARE VA LOANS ADDS MS KENT WHO IS ALSO CHAIRMAN OF THE LOAN ADMINISTRATION COMMITTEE AT THE MORTGAGE BANKERS ASSOCIATION MS KENT AND OTHER MORTGAGORS SAY THEY WON'T DISCRIMINATE AGAINST BORROWERS WITH VA LOANS OR ANY OTHER KIND BUT THEY ARE CONCERNED ABOUT THEIR INVESTMENTS TAKE FOR EXAMPLE CHARLESTON SC A CITY THAT COULD LOSE ITS NAVAL SHIPYARD THE MORTGAGE BANKERS GROUP ESTIMATES THAT LENDERS IN CHARLESTON STAND TO LOSE BETWEEN 6 MILLION TO 10 MILLION IF THE SHIPYARD DOES CLOSE SOME MORTGAGORS HAVE ALREADY LEARNED THE HARD WAY BY BEING EXPOSED TO THE PHENOMENOM OF AN ENTIRE TOWN GETTING PUNCHED IN ITS ECONOMIC STOMACH IN THE LAST DECADE FOR EXAMPLE JOBS AND HOMES IN TEXAS WERE LOST TO THE FALTERING OIL INDUSTRY BY 1985 TEXAS MORTGAGORS WERE LOSING AN AVERAGE 20000 ON EACH HOME SOLD OUT OF FORECLOSURE WE'VE DEEMPHASIZED OUR AVERAGE LOAN SIZE ON VA LOANS TO UNDER 28000 AND THE LOANS ARE OVER 10 YEARS OLD MAKING THEM LESS OF A RISK SAYS DAVID STEPHENS EXECUTIVE VICE PRESIDENT OF LOMAS MORTGAGE USA IN DALLAS TEXAS ALTHOUGH MANY WHO WOULD STAND TO LOSE JOBS IF A BASE CLOSES WOULD BE CIVILIANS AND WOULD BE LESS LIKELY TO HAVE VAGUARANTEED LOANS THEY WOULD STILL BE POTENTIAL DEFAULTERS SO MORTGAGORS WOULD STILL HAVE PROBLEMS LOOKING AT CHARLESTON AGAIN THE SHIPYARD EMPLOYEES ABOUT 34000 PEOPLE HALF OF WHOM ARE CIVILIANS DEFENSE DEPARTMENT FIGURES SHOW THAT CHARLESTON COULD LOSE ALMOST 10000 CIVILIAN JOBS IF THE BASE CLOSES AND SOME LOCAL BUSINESS ANALYSTS SAY THE FIGURE WOULD BE CLOSER TO 17000 CHARLESTON'S TOTAL POPULATION IS ABOUT 500000 WE'LL BE REVIEWING OUR CHARLESTON LENDING SAYS LUTHER BOLIEK PRESIDENT OF FIRST SAVINGS BANK IN GREENVILLE SC FIRST SAVINGS IS A LARGE MORTGAGE SERVICER MAINTAINING ABOUT 18 BILLION IN LOANS FOR OTHER LENDERS AND IT HAS ALMOST AS MUCH IN LOANS ON ITS OWN BOOKS 9303220124 930322 US READIES ENFORCEMENT OF TYING' LAWS BANKING REGULATORS SAID TO BE NEAR TO ACTING AGAINST UNNAMED FIRM BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON FEDERAL BANKING REGULATORS ARE ABOUT TO TAKE THEIR FIRST ENFORCEMENT ACTION AGAINST A BANK HOLDING COMPANY FOR TYING VIOLATIONS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE FEDERAL RESERVE BOARD AND THE OFFICE OF THE COMPTROLLER OF THE CURRENCY ARE ON THE VERGE OF WRAPPING UP AN ENFORCEMENT ACTION REGARDING RULES THAT BAR BANKS FROM TYING THE PROVISION AND PRICING OF SERVICES SUCH AS LETTERS OF CREDIT TO OBTAINING BOND UNDERWRITING BUSINESS THESE PEOPLE SAID THEY WOULDN'T IDENTIFY THE BANKING ORGANIZATION INVOLVED THE ACTION WOULD BE THE FIRST TIME BANK REGULATORS EVER HAVE MOVED AGAINST AN ALLEGED VIOLATION OF A 1972 LAW AGAINST TYING ARRANGEMENTS BY BANKS OTHER SUCH ACTIONS ARE QUITE POSSIBLE IN THE FUTURE OFFICIALS SAID A FED SPOKESMAN DECLINED TO COMMENT ON THE MATTER AS DID A SPOKESWOMAN FOR THE COMPTROLLER'S OFFICE THE BANKING ORGANIZATION EXPECTED TO BE DISCIPLINED IS SAID TO BE PREPARED TO ENTER AN ACCORD WITH REGULATORS UNDER WHICH IT AGREES TO CEASE THE ACTIVITY IN QUESTION REGULATORS ARE EXPECTED TO USE ONE OF THEIR LESS STRINGENT ENFORCEMENT TOOLS PERHAPS A SOCALLED MEMORANDUM OF UNDERSTANDING THE FIRST OFFICIAL WORD OF THE ACTION COULD COME FROM THE BANK HOLDING COMPANY BEING DISCIPLINED WHEN IT DISCLOSES THE ENFORCEMENT ACTION IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE FED AND THE COMPTROLLER ACKNOWLEDGMENTS IN THE FALL THAT THEY WERE LOOKING INTO ALLEGATIONS OF TYING VIOLATIONS THESE ACKNOWLEDGMENTS COINCIDED WITH A RESURGENCE OF LONGSTANDING SECURITIES INDUSTRY COMPLAINTS OF ALLEGED BANK TYING ARRANGEMENTS TYING INQUIRIES BY HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH AND PUBLIC CALLS BY SEC OFFICIALS FOR THE BANKING AGENCIES TO BE MORE VIGILANT AGAINST POSSIBLE TYING PROBLEMS THE SECURITIES INDUSTRY ASSOCIATION A WALL STREET TRADE GROUP ISSUED AN INDUSTRYWIDE CALL FOR MEMBER FIRMS TO COME FORWARD WITH SPECIFIC EXAMPLES OF HOW THEY HAVE BEEN HURT IN THE BOND UNDERWRITING ARENA BY BANK TYING ARRANGEMENTS ONE PERSON FAMILIAR WITH THE MATTER SAID THE SIA'S CONTRIBUTION TO THE INVESTIGATION SO FAR HAS BEEN DISAPPOINTING STILL OTHERS FAMILIAR WITH THE SITUATION SAID REGULATORS HAVE FOUND A HANDFUL OF CASES THAT WARRANT FURTHER INVESTIGATION AND WHERE ENFORCEMENT ACTION IS QUITE POSSIBLE THE ENFORCEMENT MOVE REPORTEDLY COMES IN RESPONSE TO MUNICIPAL BONDRELATED TRANSACTIONS WITH THE PROVISION AND PRICING OF CREDIT ASSISTANCE ALLEGEDLY TIED TO OBTAINING BOND UNDERWRITING BUSINESS OTHER POSSIBLE ENFORCEMENT ACTIONS REPORTEDLY INVOLVE CORPORATE BONDRELATED TRANSACTIONS PEOPLE FAMILIAR WITH THE SITUATION SAID BANK REGULATORS HAVE POINTED OUT IN THE PAST THERE'S NOTHING WRONG PER SE WITH HAVING BANKS PROVIDE MULTIPLE SERVICES TO A CLIENT SUCH AS A MUNICIPALITY OR A CORPORATION SOME BANKING INDUSTRY OFFICIALS AND LAWYERS SEE THE ANTITYING STATUTE AS MURKY AND VOICE CONCERN PRIVATELY THAT AN ANTITYING OFFENSIVE NOW COULD HAVE HURT THE AVAILABILITY AND PRICE OF BANKING SERVICES JUST AS AUTHORITIES ARE STRUGGLING TO COUNTER THE CREDIT CRUNCH 9303220123 930322 AT LAST THE LDP MAY BE LOSING ITS GRIP BY CAIT MURPHY TOKYO KAZUO AICHI DOES NOT LOOK LIKE A REVOLUTIONARY TRIM AND SELFCONTAINED DRESSED IN A CONSERVATIVE BLUE SUIT THIS 17YEAR VETERAN OF THE DIET SITS IN HIS CRAMPED OFFICE THE INNER SANCTUM PARTITIONED BY STACKS OF CARDBOARD BOXES ON THE WALLS ARE PICTURES OF HIM WITH SUMO WRESTLERS AND OTHER IMPORTANT FOLKS A UNIVERSITY OF IDAHO PENHOLDER AND A COMMEMORATIVE PIN FROM THE CLINTONGORE INAUGURATION REFLECT HIS AFFINITY FOR THINGS AMERICAN BUT WHEN MR AICHI SPEAKS HE BECOMES A REBEL WITH A CAUSE IN DECEMBER HE GAVE UP A TOP POSITION AND THE SECURITY OF LONG TENURE WITH THE DOMINANT TAKESHITA FACTION OF THE RULING LIBERAL DEMOCRATIC PARTY TO JOIN A RENEGADE FACTION REFORM FORUM 21 NOW HE WANTS OUT OF THE LDP ALTOGETHER IF OUR GROUP WOULD INDEED BREAK AWAY FROM THE LDP THE LDP WOULD LOSE ITS MAJORITY IN THE LOWER HOUSE SAYS MR AICHI THE ONLY POSSIBILITY THEN WOULD BE THE CREATION OF SOME FORM OF COALITION GOVERNMENT WE WOULD BE RECREATING THE WHOLE BASIS OF JAPANESE POLITICS STARTING FROM THE GROUND LEVEL AGAIN WITH FORMER LDP POWERBROKER SHIN KANEMARU IN JAIL FOR ALLEGEDLY EVADING SOME 516 MILLION IN TAXES AND ON TOP OF THE RECRUIT SECURITIES AND SAGAWA KYUBIN SCANDALS MUCKING OUT THE AUGEAN STABLE OF JAPANESE POLITICS IS LONG OVERDUE THE SYSTEM OBVIOUSLY HAS OUTRUN ITS USEFULNESS SAYS MASAHIKO ISHIZUKA OF THE NIHON KEIZAI SHIMBUN JAPAN'S LEADING BUSINESS DAILY EVEN THE BUSINESS ESTABLISHMENT IS GETTING FED UP WITH THE LDP OF COURSE JUST BECAUSE THERE IS A CONSENSUS THAT IT'S TIME FOR SOMETHING DIFFERENT DOESN'T MEAN THAT CHANGE IS NIGH JAPAN'S HISTORIC POLITICAL INERTIA HAS OFTEN OVERWHELMED THE EFFORTS OF THOSE WHO HAVE FALLEN ON THE SWORD OF REFORM THIS TIME HOWEVER THINGS MIGHT BE DIFFERENT THERE ARE SO MANY IDEAS BUBBLING UP SO MUCH DISSATISFACTION AND SOULSEARCHING THAT EVEN POLITICIANS WHO PREVIOUSLY SPURNED THE R WORD ARE NOW CAUTIOUSLY EMBRACING IT THE MOST PROMISING SIGN IS THAT THE DRIVE FOR POLITICAL REFORM IS COMING FROM PEOPLE IN THE VAST MIDDLECLASS MODERATE CORE OF JAPANESE SOCIETY SECOND THE REFORMERS ARE YOUNG AT LEAST BY THE STANDARDS OF JAPANESE POLITICS IF THEY CAN HANG IN THERE CHANGE IS AS INEVITABLE AS THE WORKINGS OF THE ACTUARIAL TABLES TAKE MR AICHI HE STEADILY MOVED UP THE LDP RANKS AND AT THE AGE OF 55 SHOULD HAVE BEEN SETTING HIS SIGHTS ON FURTHER GLORY INSTEAD HE WANTS TO CHUCK IT FOR THE UNCERTAINTY OF A NEW PARTY ANOTHER ESTABLISHMENT REBEL IS MORIHIRO HOSOKAWA 54 WHO LEFT THE LDP IN DISGUST TO FORM THE JAPAN NEW PARTY LAST MAY IN THE JULY ELECTIONS THE JAPAN NEW PARTY PICKED UP 8 OF THE VOTE AND FOUR SEATS AND HAS SINCE DONE WELL IN A NUMBER OF LOCAL ELECTIONS THE REFORM FORUM'S LEADERS ARE TWO PROMINENT LDP FIGURES FORMER LDP SECRETARYGENERAL ICHIRO OZAWA 50 AND FORMER FINANCE MINISTER TSUTOMO HATA 57 MR OZAWA CUT HIS POLITICAL TEETH UNDER FORMER PRIME MINISTER KAKUEI TANAKA AND THEN BECAME THE FAVORITE SON OF SHIN KANEMARU DESPITE THIS IMPECCABLE ESTABLISHMENT PEDIGREE HE ISN'T SHY IN ASSERTING THAT JAPAN MUST RETHINK THE WAY IT GOVERNS ITSELF AND HE HINTS BROADLY THAT HE WOULD BE WILLING TO TAKE HIS FACTION OUT OF THE LDP TO FORM A NEW PARTY AS MR AICHI WANTS EVEN IF MR OZAWA IS NOT QUITE AS ARDENT AS HE SOUNDS AS MANY SKEPTICS CHARGE IT IS TELLING THAT THIS SEASONED PROFESSIONAL SEES IN REFORM THE MEANS TO MAKE HIS POLITICAL FORTUNE MR HATA HAS A LESS CLOUDED REPUTATION DESPITE HIS BRIEF MOMENT OF FAME IN THE 1980S WHEN HE ARGUED FOR MAINTAINING THE BAN ON BEEF IMPORTS ON THE BASIS THAT JAPANESE INTESTINES ARE UNIQUE A WESTERN DIPLOMAT WHO VISITED HIM CAME AWAY IMPRESSED AND SOMEWHAT AMUSED WITH HIS ENTHUSIASM DESCRIBING MR HATA AS AWASH IN LEAFLETS AND POLICY PAPERS AND BUBBLING WITH IDEAS THAT SOUNDED A LOT LIKE KENICHI OHMAE'S MR OHMAE 50 IS A MANAGEMENT CONSULTANT AND OCCASIONAL CONTRIBUTOR TO THESE PAGES WHO LAST FALL FOUNDED THE REFORM OF HESEI WHICH AIMS TO CREATE A GRASSROOTS POLITICAL MOVEMENT THE IDEA IS TO FIND AND ENDORSE A SLATE OF CLEAN POLITICIANS OF VARIOUS PARTIES WHO PROMISE TO PROMOTE A SET OF POLICY PRINCIPLES INCLUDING DEREGULATION OPENING OF THE RICE MARKET DECENTRALIZATION OF GOVERNMENT AUTHORITY AND CONSTITUTIONAL REFORM CANDIDATES WHO PASS MUSTER GET THE REFORM OF HESEI SEAL OF APPROVAL AS WELL AS FINANCIAL AND LOGISTICAL SUPPORT THE PRESSURE FOR REFORM HAS EVEN REACHED THE DESK OF KIICHI MIYAZAWA WHO HAS SPENT MUCH OF HIS PRIME MINISTERSHIP DEFTLY AVOIDING THE ISSUE BY PROMISING ACTION NEXT WEEK NEXT MONTH OR ANYTIME BUT NOW THE LDP HAS DRAFTED FOUR POLITICAL REFORM BILLS THAT IT PLANS TO PRESENT TO THE DIET NEXT MONTH BUT FOR ALL THE CURRENT BUSTLE THERE IS A FUNDAMENTAL PROBLEM NO ONE KNOWS QUITE WHAT REFORM WOULD LOOK LIKE MR OHMAE FOR EXAMPLE HAS PUT TOGETHER A SOPHISTICATED FACT SHEET FULL OF GRAPHS AND FLOW CHARTS BUT THE DETAILS REMAIN MURKY DITTO FOR REFORM FORUM 21 EVEN IF IT BECOMES A NEW PARTY AND AT THIS POINT MR OZAWA MAY HAVE BURNED TOO MANY BRIDGES NOT TO TAKE THE LEAP IS THAT POLITICAL REFORM OR JUST PARTY RESHUFFLING AN EVEN BIGGER PROBLEM IS THAT WHILE THE PUBLIC IS CLEARLY DISGUSTED WITH MR KANEMARU'S STASH OF FILTHY LUCRE IT MAY NOT BE WILLING TO GET OFF THE LDP HORSE IN THE MIDDLE OF A RECESSION ONE OF THE STRIKING FEATURES OF MR KANEMARU'S RECENT PROBLEMS IS HOW LITTLE EFFECT THEY HAVE HAD ON PUBLIC ATTITUDES TOWARD THE LDP WHILE A RECENT POLL SHOWED SUPPORT FOR THE LDP SLIPPING IT WAS STILL HIGHER THAN FOR ANY OTHER PARTY SCANDAL HAS BEEN A RECURRING ELEMENT IN JAPANESE POLITICS FOR SO LONG THAT WHILE PUBLIC OUTRAGE DOES FLARE IT DOES NOT BURN STEADILY AND WITHOUT SUSTAINED PUBLIC PRESSURE THE POLITICIANS AND BUREAUCRATIC OLIGARCHS WHO HAVE THRIVED UNDER THE CURRENT SYSTEM ARE GOING TO FIGURE OUT HOW TO KEEP AS MUCH OF IT AS THEY CAN THAT'S THE PESSIMISTIC CASE THE OPTIMISTIC ONE IS THAT JAPANESE ARE FULLY AWARE OF THEIR PROBLEMS AND HAVE SHOWN THEMSELVES MORE THAN CAPABLE OF COPING WITH DIFFICULTIES BEFORE MANY JAPANESE WERE ONCE WILLING TO SHRUG OFF CRITICISMS OF THEIR ANTIQUATED POLITICAL SYSTEM WITH THE PHRASE FIRSTRATE BUSINESS THIRDRATE POLITICS WHO CARED IF LIFE KEPT IMPROVING THESE DAYS HOWEVER IN THE WAKE OF A SLUMPING ECONOMY AND POLITICAL SCANDALS THAT KEEP GETTING UGLIER JAPANESE ARE ASKING CAN'T WE DO BETTER THAN THIS THE ANSWER IS OF COURSE YES MS MURPHY IS EDITORIAL PAGE EDITOR OF THE ASIAN WALL STREET JOURNAL 9303220122 930322 DIVIDEND NEWS AMERICAN REAL ESTATE PARTNERS LP AMERICAN REAL ESTATE PARTNERS LP MOUNT KISCO NY CUT IN HALF ITS QUARTERLY DISTRIBUTION TO 125 CENTS A DEPOSITARY UNIT FROM 25 CENTS CITING WEAKER CASH FLOW THE NEW DISTRIBUTION IS PAYABLE MAY 14 TO UNIT HOLDERS OF RECORD MARCH 31 THE REAL ESTATE COMPANY HAS NEARLY 14 MILLION UNITS OUTSTANDING CASH FLOW HAS BEEN HURT BY VARIOUS FACTORS INCLUDING THE BANKRUPTCY OF CERTAIN TENANTS AND THE EXPIRATION OF CERTAIN TENANT LEASES 9303220121 930322 PARTECH TO BUY WDZDFM COLUMBUS OHIO PARTECH HOLDINGS CORP SAID ITS PARTECH COMMUNICATIONS GROUP UNIT HAS ACQUIRED RADIO STATION WDZDFM IN SHALLOTTE NC FOR 462000 INCLUDING 260000 IN CASH AND TWO PROMISSORY NOTES PAYABLE OVER 60 MONTHS PARTECH PLANS TO UPGRADE THE STATION TO 25000 WATTS FROM 3000 WATTS BY SEPTEMBER THE COMPANY SAID SEPARATELY PARTECH SAID THE UNIT IS AWAITING APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION FOR THE TRANSFER OF THE LICENSE OF WGMXFM IN MARATHON FLA PARTECH COMMUNICATIONS ALSO HAS AGREED IN PRINCIPLE TO ACQUIRE 49 OF WKKBFM IN MARATHON SUBJECT TO FCC APPROVAL AND TO ACQUIRE ONE FM STATION AND ONE AM STATION IN TALLAHASSEE FLA IN ORDER TO FINANCE THE ACQUISITIONS PARTECH COMMUNICATIONS HAS BORROWED 625000 9303220120 930322 LAWSUIT AGAINST SPECTRANETICS COLORADO SPRINGS COLO SPECTRANETICS CORP SAID ADVANCED INTERVENTIONAL SYSTEMS INC AN IRVINE CALIF MAKER OF LASER ANGIOPLASTY SYSTEMS ACCUSED IT OF PATENT INFRINGEMENT IN A LAWSUIT FILED IN US DISTRICT COURT IN LOS ANGELES THE MAKER OF MEDICAL PRODUCTS SAID THE CLAIMS AGAINST IT WERE WITHOUT MERIT BUT DID NOT PROVIDE ANY DETAILS REGARDING THE LAWSUIT EXECUTIVES FROM THE TWO COMPANIES COULDN'T BE REACHED TO COMMENT LAST MONTH SPECTRANETICS RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO SELL ITS LASER ANGIOPLASTY SYSTEM FOR A WIDE NUMBER OF USES IN CLEARING BLOCKED CORONARY ARTERIES LAST YEAR THE FDA APPROVED THE SALE OF A SIMILAR DEVICE BY ADVANCED INTERVENTIONAL SYSTEMS ALTHOUGH FOR A LIMITED NUMBER OF USES 9303220119 930322 JMAR EXPECTS PROFIT IN FOURTH PERIOD AND SALES FOR YEAR DOUBLE 1992'S LEVEL BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO JMAR INDUSTRIES INC EXPECTS A PROFIT FOR THE 1993 FOURTH QUARTER AND SALES OF ABOUT 20 MILLION FOR THE YEAR JOHN S MARTINEZ CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE LASER RESEARCH CONCERN WHICH HAS POSTED A STRING OF LOSSES AND WHICH LATE LAST YEAR ACQUIRED SEVERAL SMALL COMPANIES WITH PRODUCTS AND SERVICES ALREADY ON THE MARKET ALSO EXPECTS TO REPORT A 1992 NET LOSS OF A LITTLE UNDER 5 MILLION OR AROUND 2 A SHARE ON SALES OF ABOUT 10 MILLION DR MARTINEZ SAID IN AN INTERVIEW JMAR HASN'T YET REPORTED FINANCIAL RESULTS FOR THE 1992 FOURTH QUARTER BUT WILL DO SO BY THE MARCH 31 SECURITIES AND EXCHANGE COMMISSION DEADLINE FOR FILING YEAREND NUMBERS DR MARTINEZ SAID FOR THE FIRST NINE MONTHS OF 1992 JMAR REPORTED A 37 MILLION NET LOSS ON 44 MILLION IN SALES AFTER AN EXPECTED RESTATEMENT TO REFLECT ACCOUNTING FOR ACQUISITIONS JMAR HAD A 1991 NET LOSS OF 2 MILLION OR 145 A SHARE ON SALES OF 37 MILLION DR MARTINEZ SAID THE ANTICIPATED RESTATEMENT IS SUBJECT TO FINAL REVIEW BY AUDITORS HE ADDED BECAUSE OF THE POOLINGOFINTERESTS ACCOUNTING IN THE DEC 31 ACQUISITION OF TEXCEL INC IN EXCHANGE FOR ABOUT 160000 JMAR SHARES THE 1992 NINEMONTH NUMBERS WILL BE RESTATED DR MARTINEZ SAID THE REVISED NINEMONTH TOTAL FOR SALES WILL BE ABOUT 1 MILLION HIGHER THAN PREVIOUSLY REPORTED THE EXECUTIVE SAID THAT JMAR'S BENCHMARK INDUSTRIES INC UNIT ACQUIRED IN SEPTEMBER FOR 15 MILLION IN JMAR STOCK IS EXPECTED TO HAVE SALES TOTALING ABOUT 10 MILLION IN CALENDER 1993 MORE THAN DOUBLE THE 48 MILLION POSTED BY THE MAKER OF SPECIAL LASER SYSTEMS AND OF OPTICAL MEASUREMENT AND INSPECTION SYSTEMS IN ITS YEAR ENDED JUNE 30 DR MARTINEZ SAID JMAR'S SURGILASE INC UNIT WHOSE AQCUISITION WAS COMPLETED LAST JUNE WILL SOON ANNOUNCE A VENTURE WITH A COMPANY IN SCOTLAND TO JOINTLY PRODUCE MEDICAL LASERS THAT COULD SELL IN THE 10000 TO 15000 RANGE FAR LOWER THAN MOST EXISTING EQUIPMENT DR MARTINEZ SAID THE NEW MACHINE WILL USE A JMAR LASER COUPLED WITH SPECIAL FLEXIBLE LASER CONDUIT CALLED A FIBERLASE COMBINED WITH POWER AND CONTROL COMPONENTS FROM THE SCOTTISH CONCERN THE ASYETTOBENAMED MACHINE WILL BE MARKETED BY MLT LTD A SMALL CLOSELY HELD SCOTTISH CONCERN THAT IS SURGILASE'S PARTNER IN THE VENTURE FOR DENTAL USE IN EUROPE AND THROUGHOUT THE UK FOR MEDICAL AND DENTAL USE IT WILL BE MARKETED ELSEWHERE BY SURGILASE HE SAID MARKETING THE EQUIPMENT HOWEVER WILL REQUIRE FOOD AND DRUG ADMINISTRATION APPROVAL A PROCESS EXPECTED TO TAKE THREE TO SIX MONTHS HE SAID WE ARE FOCUSING ON THE LOW END OF THE MEDICAL MARKET DR MARTINEZ SAID HE SAID SURGILASE HAS CHANGED ITS MARKETING AND PRICING CUTTING THE CHARGE FOR ONE OF ITS MOST POWERFUL MEDICAL LASERS TO ABOUT 85000 FROM 140000 SLICING PRICES DR MARTINEZ HOPES WILL OPEN FAR WIDER MARKETS FOR EQUIPMENT THE NEW INEXPENSIVE MACHINE FOR INSTANCE MIGHT WIDEN THE COMPANY'S ACCESS TO THE DENTAL MARKET WHERE DR MARTINEZ ESTIMATES THAT ONLY A FEW PERCENT OF ALL OFFICES ARE EQUIPPED WITH LASERS THERE IS A VERY LARGE LATENT MARKET FOR DENTAL LASERS OUT THERE THE ONLY PROBLEM IS THAT IT'S VERY PRICE SENSITIVE DR MARTINEZ SAID 9303220118 930322 WHO'S NEWS PRUDENTIAL INSURANCE CO OF AMERICA PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ MICHAEL J DOWNEY 49 YEARS OLD WAS NAMED TO THE PRUDENTIAL SECURITIES INC UNIT'S OPERATING COMMITTEE WHICH COMPRISES THE UNIT'S TOP OFFICERS MR DOWNEY IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PRUDENTIAL MUTUAL FUND MANAGEMENT HIS APPOINTMENT INCREASES THE COMMITTEE'S SIZE TO SEVEN MEMBERS PRUDENTIAL SECURITIES ALSO SAID GERALD TANKERSLEY 55 WILL HEAD A NEW RETAIL GROUP DIVISION WHILE RETAINING HIS TITLE OF SENIOR VICE PRESIDENT PREVIOUSLY DIRECTOR OF THE RETAIL GROUP'S STRATEGIC PLANNING MR TANKERSLEY WILL BE RESPONSIBLE FOR INSURANCE/ANNUITIES RETIREMENT PLANS PERSONAL TRUSTS AND INVESTMENTMANAGEMENT CONSULTING 9303220116 930322 COMMODITIES POOR COUNTRIES DESPERATELY SEEK TO RESURRECT PRICESUPPORT MEASURES FOR COCOA AND COFFEE BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL LONDON POOR AFRICAN AND CENTRAL AMERICAN NATIONS ARE TRYING DESPERATELY TO RESURRECT INTERNATIONAL COFFEE AND COCOA PRICESUPPORT SCHEMES I DON'T KNOW OF ANY AFRICAN FARMER OR GOVERNMENT WHO ISN'T COMPLAINING BITTERLY SAYS SIMEON ONCHERE KENYA'S LONDONBASED COFFEE REPRESENTATIVE COFFEE USED TO BE KENYA'S MAIN EXPORT INDUSTRY BUT IT IS NOW SURPASSED BY TEA TOURISM AND PROBABLY EVEN FLOWERS HE SAYS KENYA IS ONE OF THE FEW FORTUNATE AFRICAN PRODUCERS TO DIVERSIFY ITS ECONOMY OFFICIALS SAY OTHER AFRICAN NATIONS ALREADY BURDENED BY POVERTY AND RISING FOREIGN DEBT HAVE NO HEDGE AGAINST THE PRICE SLIDE OF COFFEE AND COCOA SINCE PRICE STABILIZATION AGREEMENTS COLLAPSED IN THE LATE 1980S THE AVERAGE INTERNATIONAL PRICE OF COCOA SLUMPED TO 968 A METRIC TON FRIDAY FROM AN AVERAGE PRICE OF 1700 IN 1988 THE INTERNATIONAL COCOA ORGANIZATION SAYS AGGRAVATED BY FALLING OUTPUT THE VALUE OF AFRICAN PRODUCTION IS ESTIMATED AT 12 BILLION COMPARED WITH 25 BILLION IN 1988 THE ORGANIZATION SAYS MEANWHILE TOTAL LOSSES FOR PRODUCERS SINCE THE COFFEE ACCORD WAS SUSPENDED IN 1989 AMOUNT TO ABOUT 10 BILLION CALCULATES OWUSU AKOTO CHIEF ECONOMIST OF THE INTERNATIONAL COFFEE ORGANIZATION AN INTERGOVERNMENTAL BODY CUMULATIVE LOSSES OF AFRICAN FARMERS TOTALED 29 BILLION IN THIS PERIOD EQUIVALENT TO THE AMOUNT OF LOANS THAT SUBSAHARA AFRICAN COUNTRIES RECEIVED FROM THE WORLD BANK THE DEBATE ON WHETHER COMMODITY PRICESTABILIZATION AGREEMENTS ARE AN ANSWER TO THIRD WORLD PROBLEMS IS RESURFACING AHEAD OF CRITICAL PRODUCER AND CONSUMER NEGOTIATIONS IN THE NEXT FEW WEEKS PRODUCERS' HOPES ARE UNLIKELY TO BE REALIZED DELEGATES SAY MAINLY BECAUSE THE US AND TO A LESSER EXTENT THE EUROPEAN COMMUNITY PREFER FREE MARKETS BRAZIL A POWERFUL PRODUCER IS ALSO RELUCTANT TO SUPPORT THE PRICEPROPPING PROGRAMS FOR ALL PRODUCERS UNLESS THEY SUIT ITS OWN INTERESTS DELEGATES SAY IN THE PAST WEEK COCOA DELEGATES MET IN LONDON IN AN ATTEMPT TO RESUSCITATE TALKS THAT FAILED IN GENEVA IN FEBRUARY DELEGATES SAID YET PROSPECTS FOR PROGRESS IN COMING MONTHS ARE DIM AN OFFICIAL SAID AND DISCUSSIONS WILL BE POSTPONED UNTIL JUNE THE US THE WORLD'S BIGGEST CONSUMER DIDN'T EVEN ATTEND THE LONDON MEETING COFFEE PRODUCING AND CONSUMING NATIONS GATHER HERE OVER THE NEXT 10 DAYS UNLESS THERE IS AGREEMENT ON KEY ISSUES BY MARCH 31 THOSE TALKS ARE DOOMED TO FAIL DELEGATES AND ANALYSTS SAY NEGOTIATIONS ARE COMPLICATED BY CONTINUAL ACRIMONY BETWEEN THE US THE MAIN CONSUMER AND BRAZIL THE BIGGEST PRODUCER BRAZIL'S COFFEE EXPORTS ONLY ACCOUNT FOR 4 OF TOTAL EXPORT EARNINGS COMPARED WITH 21 IN THE LATE 1970S DELEGATES SAY PRODUCERS THAT ARE MORE DEPENDENT ON COFFEE ARE PREPARED TO BEND BUT BRAZIL BOGS DOWN NEGOTIATIONS BY ATTEMPTING TO DRIVE A HARD BARGAIN DELEGATES SAY SEVERAL EMBITTERED PRODUCERS CLAIM THAT US NEGOTIATORS ARE ALSO UNDER THE INFLUENCE OF THE NATIONAL COFFEE ASSOCIATION THE US COFFEE MANUFACTURERS' LOBBY OUT OF 13 US DELEGATES AT THE FEBRUARY MEETING NINE ADVISERS REPRESENTED THE US COFFEE MANUFACTURING INDUSTRY AND POWERFUL MERCHANTS A DELEGATE SAID US DELEGATES SAY THEY FAVOR A MARKET RELATED PACT THE COFFEE MARKET HOWEVER CANNOT BE DESCRIBED AS TRULY FREE DELEGATES ASSERT SALES IN THE RETAIL MARKET ROSE TO 34 BILLION THIS YEAR FROM 327 BILLION IN 1989 SAYS MR AKOTO OF THE COFFEE ORGANIZATION MEANWHILE THE PRICE PAID TO FARMERS SLID TO 3 BILLION FROM 59 BILLION AVERAGE IMPORT PRICES OF COFFEE FELL TO 68 CENTS A POUND FROM 118 A POUND IN THE SAME PERIOD HE SAYS YET THE AVERAGE RETAIL PRICE OF ROASTED COFFEE FOR CONSUMERS ROSE TO 424 A POUND FROM 414 UNFORTUNATELY CONSUMING NATIONS ARE ONLY EXAMINING THE PACTS FROM A COMMERCIAL STANDPOINT SAYS NESTOR OSORIO A COLOMBIAN DELEGATE THEY ARE FORGETTING ABOUT THE POLITICAL ECONOMIC AND SOCIAL IMPLICATIONS FOR PRODUCERS HE SAYS THE COLOMBIANS HAVE ACTIVELY LOBBIED THE CLINTON ADMINISTRATION IN RECENT WEEKS EXPLAINING THAT A HEALTHY CENTRAL AMERICAN COFFEE FARMING COMMUNITY COUNTERS COCAINE PRODUCTION MR OSORIO SAYS BUT HE ADDS COFFEE IS ON THE ADMINISTRATION'S BACK BURNER COFFEE PRODUCTION AND QUALITY ARE DECLINING IN LINE WITH PRICES MR OSORIO SAYS WHEN THERE IS A COFFEE PRICE SURGE AT SOME POINT HE WARNS THE MARKET WILL REGRET THE ABSENCE OF A PRICESTABILIZATION AGREEMENT 9303220115 930322 MARKETING & MEDIA MONTREAL FINANCIER DESMARAIS TO INVEST 1443 MILLION FOR STAKE IN SOUTHAM BY SUZANNE MCGEE AND CHRISTOPHER J CHIPELLO STAFF REPORTERS OF THE WALL STREET JOURNAL MONTREAL FINANCIER PAUL DESMARAIS PLANS TO JOIN MEDIA MOGUL CONRAD BLACK IN TAKING A SIGNIFICANT STAKE IN SOUTHAM INC THE PRINTING AND PUBLISHING CHAIN THAT CONTROLS MANY OF CANADA'S BESTKNOWN NEWSPAPERS THE MOVE WOULD PUT SOUTHAM ON FIRM FINANCIAL FOOTING FOR THE FIRST TIME IN SEVERAL YEARS ANALYSTS SAY MR DESMARAIS HAS A REPUTATION AS ONE OF THE CANNIEST INVESTORS IN THE COUNTRY AND THE 180 MILLION CANADIAN DOLLAR US1443 MILLION INVESTMENT IN SOUTHAM WOULD BE HIS FIRST IN CANADA SINCE 1987 BUT SOME OBSERVERS SAY THE MOVE COULD SET THE STAGE FOR AN EVENTUAL BATTLE BETWEEN MR DESMARAIS AND MR BLACK NEITHER OF WHOM TENDS TO REMAIN A LONGTERM INVESTOR IN AN ENTERPRISE HE DOESN'T CONTROL FOR MAJORITY OWNERSHIP OF A RECOVERED SOUTHAM POWER CORP A FINANCIAL SERVICES AND MEDIA HOLDING COMPANY CONTROLLED BY MR DESMARAIS IS ACQUIRING 129 MILLION TREASURY SHARES OF SOUTHAM BOOSTING ITS STAKE IN THE COMPANY TO 187 THE ISSUE OF THE NEW SHARES WILL LEAVE MR BLACK AND MR DESMARAIS ON AN EQUAL FOOTING DILUTING MR BLACK'S INTEREST TO 187 FROM 225 THE TWO ALSO REACHED A 15YEAR SHAREHOLDERS' AGREEMENT GIVING EACH OTHER THE RIGHT OF FIRST REFUSAL ON THEIR SHARES AND PROVIDING VOTING PARITY REGARDLESS OF THE NUMBER OF SHARES HELD IN MOST CIRCUMSTANCES POWER LIKE MR BLACK'S HOLLINGER INC WILL HAVE THREE SEATS ON THE SOUTHAM BOARD UNDER THE TERMS OF THE AGREEMENT MR BLACK DESCRIBES MR DESMARAIS'S DECISION TO INVEST IN SOUTHAM WHICH CAME IN THE WAKE OF SOUTHAM'S ANNOUNCEMENT THAT IT NEEDED TO RAISE ADDITIONAL EQUITY FINANCING AS OVERWHELMINGLY GOOD FOR ALL PARTIES POWER IS A COEQUAL AND KINDRED SHAREHOLDER THAT DOES NOT THREATEN US MR BLACK SAYS HE ADDS THAT BOTH POWER AND HOLLINGER HAVE EXPERIENCE IN PUBLISHING THAT WILL HELP SOUTHAM RESTRUCTURE ITS OPERATIONS AND RETURN TO PROFITABILITY MR BLACK SAID HE EXPECTS THAT MR DESMARAIS'S INVESTMENT IN SOUTHAM WILL HELP EASE SUSPICION OF LARGE SHAREHOLDERS THAT SUSPICION PROMPTED THE CREATION OF A SHAREHOLDER RIGHTS PLAN BOTH MAJOR SHAREHOLDERS ARE LIKELY TO VOTE AGAINST CONTINUING THE PLAN WHICH WAS SUSPENDED TO ALLOW MR DESMARAIS TO ACQUIRE HIS INTEREST WHEN IT COMES UP FOR REVIEW IN 1995 UNTIL THEN BOTH ARE RESTRICTED TO 235 HOLDINGS WHILE MR BLACK POINTED OUT THAT HE IS ON EXCELLENT TERMS WITH MR DESMARAIS PERSONALLY THE TWO INVESTORS HAVE BEEN BUSINESS RIVALS IN THE PAST IN THE MID1970S MR DESMARAIS BID FOR CONTROL OF ARGUS CORP A TORONTO HOLDING COMPANY IN WHICH MR BLACK'S FATHER WAS A SHAREHOLDER MR DESMARAIS VIEWED AS A FRENCH CANADIAN INTERLOPER WAS REBUFFED AND MR BLACK LATER BOUGHT OUT MR DESMARAIS'S STAKE THE TWO INVESTORS HAVE NEVER BEEN BUSINESS PARTNERS NOR HAVE THEY EVER HELD ON FOR LONG TO HOLDINGS IN COMPANIES THEY DIDN'T CONTROL OUTRIGHT FOR EXAMPLE MR BLACK'S HOLLINGER LAST YEAR SOLD ITS 88 STAKE IN UNITED NEWSPAPERS PLC NOTING THE DIFFICULTY OF IMPROVING THE COMPANY'S OPERATIONS WITH ONLY A MINORITY HOLDING MR BLACK ACKNOWLEDGED THAT ONE OPTION AVAILABLE DOWN THE ROAD IS FOR ONE SHAREHOLDER TO BUY THE OTHER OUT OR WE COULD BREAK WITH TRADITION AND CARRY ON AS HAPPY PARTNERS HE ADDED THE BIGGEST BENEFICIARY OF THE DEAL IS LIKELY TO BE SOUTHAM ITSELF HEATHER RITCHIE A MEDIA ANALYST FOR MIDLAND WALWYN CAPITAL IN TORONTO SAID THE EQUITY INFUSION TOGETHER WITH THE LIKELIHOOD OF A C75 MILLION RIGHTS ISSUE IN COMING MONTHS BOOSTS THE COMPANY'S ASSET VALUE TO C1760 A SHARE FROM C1360 THE NEW INVESTMENT BY POWER TOGETHER WITH THE RIGHTS OFFERING AND OTHER DEBT REDUCTION MEASURES WILL CUT SOUTHAM'S DEBT TO LESS THAN C50 MILLION FROM C300 MILLION AT THE END OF 1992 SOUTHAM OFFICIALS SAID THIS IS A REAL VOTE OF CONFIDENCE IN SOUTHAM MS RITCHIE SAID INVESTORS APPEAR TO BE TAKING THAT VIEW ALREADY IN TRADING ON THE TORONTO STOCK EXCHANGE FRIDAY SOUTHAM SHARES CLOSED AT C15625 A SHARE UP C1875 9303220114 930322 INTERNATIONAL WASHINGTON INSIGHT US POLICY TOWARD ANGOLA LANGUISHES AS APPOINTEE WAITS FOR CONFIRMATION BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US POLICY TOWARD ANGOLA OFFERS A TEXTBOOK EXAMPLE OF WHAT HAPPENS WHEN A NEW ADMINISTRATION FAILS TO PUT ITS OWN APPOINTEES IN PLACE QUICKLY IT CAN'T ADAPT TO CHANGING CIRCUMSTANCES PRESIDENT CLINTON ANNOUNCED JAN 24 THAT HE WOULD NOMINATE GEORGE MOOSE A FOREIGN SERVICE OFFICER TO BE ASSISTANT SECRETARY OF STATE FOR AFRICAN AFFAIRS BUT BECAUSE OF PAPERWORK PARALYSIS MR MOOSE'S NAME STILL HASN'T BEEN FORWARDED TO THE SENATE FOR CONFIRMATION SO US POLICY IS BEING MANAGED BY HERMAN COHEN WHO HELD THE JOB DURING THE BUSH ADMINISTRATION THE CHANGEOVER HAS BEEN DELAYED SO LONG THAT THE AFRICA BUREAU ALREADY HAS HELD MR COHEN'S GOINGAWAY PARTY WE HAD PICKED THE DATE NAIVELY THINKING THE CONFIRMATION PROCESS WOULD BE OVER SAYS AN OFFICIAL NO ONE IS CLAIMING THAT MR COHEN AND HIS TEAM HAVE HIJACKED US POLICY BUT BECAUSE THEY ARE HOLDOVER OFFICIALS THERE IS A NATURAL INCLINATION TOWARD INERTIA IT'S A TENDENCY SECRETARY OF STATE WARREN CHRISTOPHER AND OTHER TOP OFFICIALS CAN'T OVERCOME BECAUSE THEY ARE PREOCCUPIED WITH CRISES IN RUSSIA AND BOSNIA MEANWHILE RENEWED CIVIL WAR IN ANGOLA CLAIMS THOUSANDS OF LIVES AND CONGRESSIONAL DEMOCRATS ARE COMPLAINING I DON'T THINK THE NEW ADMINISTRATION IS DEVOTING THE ATTENTION TO THIS THEY SHOULD SAYS REP HARRY JOHNSTON OF FLORIDA CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS SUBCOMMITTEE ON AFRICA MR JOHNSTON AND HIS SENATE COUNTERPART PAUL SIMON OF ILLINOIS ARE EXPECTED THIS WEEK TO OFFER A CONGRESSIONAL RESOLUTION CALLING FOR POLICY CHANGES WHY SHOULD THE US CARE ABOUT FARAWAY ANGOLA ONE REASON IS THAT ANGOLA IS GROPING TOWARD DEMOCRACY AND THE CLINTON ADMINISTRATION SAYS SUPPORTING DEMOCRACY IS ONE OF ITS MAJOR FOREIGN POLICY GOALS ANGOLA WHICH HAS SHUCKED ITS MARXIST PAST ALSO OFFERS THE US CONSIDERABLE COMMERCIAL OPPORTUNITIES IT HAS AN ESTIMATED 21 BILLION BARRELS OF PROVEN OIL RESERVES LARGE DIAMOND DEPOSITS AND VAST TIMBER RESOURCES TO EXPLOIT THE POTENTIAL DEMOCRATIC OPENING IN ANGOLA THE US WOULD HAVE TO TAKE A FRESH LOOK AT ITS TIES TO JONAS SAVIMBI WHOSE ANGOLAN REBEL GROUP UNITA FOUGHT ANGOLA'S FORMER MARXIST GOVERNMENT THE BUSH AND REAGAN ADMINISTRATIONS MADE ANGOLA A BATTLEGROUND OF THE COLD WAR BY LAVISHING AID AND ARMS ON MR SAVIMBI BUT HE NOW HAS BECOME THE BIGGEST IMPEDIMENT TO DEMOCRACY THERE LAST SEPTEMBER MR SAVIMBI NARROWLY LOST THE FIRST ROUND OF AN ELECTION TO HIS ONETIME MARXIST FOE JOSE EDUARDO DOS SANTOS THE UNITED NATIONS AND US OBSERVERS DEEMED THE VOTING TO BE FREE AND FAIR YET MR SAVIMBI REFUSES TO PARTICIPATE IN A RUNOFF ELECTION AND HAS BEEN LARGELY RESPONSIBLE FOR THE RENEWED VIOLENCE RECENTLY MR SAVIMBI THREATENED ANGOLAN OIL FACILITIES SOME OF WHICH ARE OPERATED BY US COMPANIES THE FOCUS OF THE CURRENT POLICY DEBATE IS WHETHER TO EXTEND DIPLOMATIC RECOGNITION TO ANGOLA LAST YEAR THE US PROMISED SUCH A MOVE ONCE ANGOLA HELD A FAIR ELECTION NOW IRONICALLY THE ADMINISTRATION IS HOLDING BACK ON THAT COMMITMENT BECAUSE MR SAVIMBI WASHINGTON'S ERSTWHILE ALLY HAS DISRUPTED THE ELECTION PROCESS MR COHEN AND HIS COLLEAGUE CLAIM THERE ISN'T YET A GOVERNMENT TO RECOGNIZE US OFFICIALS ALSO CLAIM THAT HOLDING OFF ON RECOGNITION ALLOWS THEM TO MAINTAIN LEVERAGE WITH MR SAVIMBI REP JOHNSTON DISAGREES THE BEST WAY TO GET SAVIMBI'S ATTENTION IS TO RECOGNIZE THE GOVERNMENT OF ANGOLA HE SAYS HE SAYS HE ISN'T CERTAIN WHAT THE CLINTON ADMINISTRATION'S VIEW IS BECAUSE MR MOOSE DECLINES TO DISCUSS POLICY ISSUES UNTIL AFTER HE IS CONFIRMED THE CONGRESSIONAL RESOLUTION THAT MR JOHNSTON IS COSPONSORING IS EXPECTED TO RECOMMEND THAT THE US CONSIDER RECOGNIZING ANGOLA APPOINT A SPECIAL US ENVOY TO WORK WITH THE UN AND CONSIDER IMPOSING SANCTIONS ON ANY PARTY THAT DOESN'T COMPLY WITH THE EARLIER AGREEMENT TO HOLD ELECTIONS ANGOLAN OFFICIALS SAY THERE IS A NEW GOVERNMENT TO RECOGNIZE THEY NOTE THAT A NEW LEGISLATURE WAS FORMED AS PART OF LAST YEAR'S ELECTION PROCESS ALFREDO SALVATERRA AN ANGOLAN OBSERVER AT THE ORGANIZATION OF AMERICAN STATES IN WASHINGTON SAYS HIS GOVERNMENT HAS WRITTEN TO PRESIDENT CLINTON MR CHRISTOPHER AND OTHER TOP OFFICIALS TO MAKE THEIR CASE THEY SAY THE POLICY IS UNDER REVIEW AND THEY ARE CONSIDERING OUR POINT OF VIEW HE SAYS BUT MEANWHILE MR SALVATERRA SUSPECTS THAT THE US STILL SIDES WITH MR SAVIMBI THEY'RE TRYING TO PROTECT UNITA HE SAYS IT'S THE SAME POLICY THEY USED DURING THE COLD WAR BUT THE COLD WAR IS OVER 9303220113 930322 TRADE TENSION EASES FOR US EUROPE AND ASIA SANCTIONS AGAINST EC FIRMS POSTPONED US SELLING MORE CHIPS IN JAPAN BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US HAS DECLARED A TEMPORARY CEASEFIRE IN TRADE BATTLES WITH EUROPE AND ASIA ON THE EUROPEAN FRONT US TRADE REPRESENTATIVE MICKEY KANTOR SAID ON FRIDAY THAT HE HAS POSTPONED SANCTIONS ON EUROPEAN COMMUNITY TELECOMMUNICATIONS COMPANIES AT LEAST UNTIL NEXT MONDAY WHEN HE WILL MEET WITH THE EC NEGOTIATOR SIR LEON BRITTAN ON THE ASIAN FRONT FIGURES RELEASED FRIDAY SHOWED THAT US SEMICONDUCTOR MAKERS HELD A SURPRISINGLY LARGE PORTION OF THE JAPANESE COMPUTERCHIP MARKET DURING THE FOURTH QUARTER ENDING THREATS THAT THE US WOULD RETALIATE THERE AND EARLIER LAST WEEK THE COMMERCE DEPARTMENT DECIDED AGAINST SLAPPING HEAVY TARIFFS ON SOUTH KOREAN SEMICONDUCTOR COMPANIES EFFECTIVELY ENDING THE THREAT OF MAJOR SANCTIONS THERE FOR CLINTON TRADE OFFICIALS WHO HAVE BEEN THREATENING TOUGH ACTION FROM THE DAY THEY TOOK OFFICE THIS AMOUNTED TO A SURPRISING BID FOR PEACE THE TURN OF EVENTS REFLECTS IN EQUAL PARTS WHITE HOUSE CONCERN THAT THEIR TOUGH TALK WAS FEEDING PROTECTIONISM THE EFFECT OF CONTROVERSIAL TRADE MEASURES CONCERNING JAPANESE SEMICONDUCTORS TAKEN DURING THE BUSH ADMINISTRATION AND PLAIN LUCK THE WHITE HOUSE PLANS TO PRESS ITS PEACE INITIATIVE SHORTLY WHEN IT RECOMMENDS THAT CONGRESS GRANT US NEGOTIATORS ABOUT ANOTHER 10 MONTHS' AUTHORITY TO NEGOTIATE STALLED WORLD TRADE TALKS THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL HAS APPROVED THE EXTENSION OF SOCALLED FASTTRACK AUTHORITY WHICH EFFECTIVELY LAPSED EARLY THIS MONTH WHITE HOUSE OFFICIALS SAID AND THE PRESIDENT IS EXPECTED TO MAKE THE ANNOUNCEMENT SOON UNDER FASTTRACK CONGRESS AGREES TO VOTE YES OR NO ON TRADE PACTS BUT CAN'T REWRITE THE DEALS THROUGH AMENDMENTS TRADING PARTNERS WON'T NEGOTIATE SERIOUSLY WITH THE US NEGOTIATORS UNLESS US NEGOTIATORS HAVE SUCH AUTHORITY EC PRESIDENT JACQUES DELORS WAS ABLE TO GET THE US TO RELENT ON TELECOMMUNICATIONS SANCTIONS DURING SEPARATE MEETINGS WITH PRESIDENT CLINTON AND MR KANTOR ONLY ONE WEEK EARLIER MR KANTOR HAD SAID THE US ALMOST CERTAINLY WOULD BLOCK EUROPEAN COMPANIES FROM WINNING TELECOMMUNICATIONS AND OTHER CONTRACTS BECAUSE THE EC HADN'T AGREED TO DROP BUYEUROPE PROVISIONS THAT WOULD HAVE BEEN THE FIRST TRADE SANCTIONS LEVIED BY THE CLINTON ADMINISTRATION BUT AFTER MEETING THURSDAY WITH PRESIDENT CLINTON AND SEPARATELY SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN D NY MR DELORS RECEIVED A PHONE CALL IN HIS CAR REQUESTING THAT HE MEET ON FRIDAY WITH MR KANTOR AN EC OFFICIAL SAID MR DELORS SAID HE WARNED THE US TRADE REPRESENTATIVE THAT LEVYING SANCTIONS WOULD REINFORCE THE PROTECTIONIST CAMP IN EUROPE AS A RESULT MR DELORS SAID DURING A LATER TALK AT THE EUROPEAN INSTITUTE HERE MR KANTOR AGREED TO POSTPONE THE PLANNED RETALIATION AT LEAST UNTIL HIS MEETING WITH THE EC NEGOTIATOR MR DELORS SAID THE TWO SIDES WOULD EXAMINE THEIR GOVERNMENT PROCUREMENT RULES FOR AREAS IN WHICH THEY DISCRIMINATED AGAINST FOREIGN COMPANIES WE'RE READY TO COMPARE THE TWO SYSTEMS AND DISCOVER THE UNFAIR PRACTICES ON THE TWO SIDES MR DELORS SAID BUT MR KANTOR SAID THAT THE US HADN'T AGREED TO MAKE ANY CONCESSIONS AT ALL HE EMPHASIZED THAT THE EC SAID IT WOULD ADDRESS CONSTRUCTIVELY US CONCERNS ABOUT BUYEUROPE PROVISIONS AND WOULD TRY TO NEGOTIATE STEEP TARIFF REDUCTIONS IN WORLD TRADE TALKS THIS CEASEFIRE BROUGHT IMMEDIATE CRITICISM FROM SEN JOHN DANFORTH R MO WHO SAID WHAT LITTLE CREDIBILITY THE US MIGHT HAVE ENJOYED WITH THE EC HAS BEEN DESTROYED OR NEARLY DESTROYED ON THE SEMICONDUCTOR FRONT THE US HELD ITS FIRE AFTER AN UNEXPECTED DEVELOPMENT THE RELEASE FRIDAY OF FIGURES SHOWING THAT FOREIGN COMPUTERCHIP MAKERS RACKED UP 1992 SALES AMOUNTING TO AN IMPRESSIVE 202 OF THE JAPANESE DOMESTIC MARKET BY A FORMULA PREFERRED BY THE JAPANESE GOVERNMENT FOREIGN MAKERS' SHARE OF THE MARKET ROSE TO 225 US COMPANIES SELL ABOUT 85 OF THE FOREIGN SEMICONDUCTORS IN JAPAN FOREIGN SEMICONDUCTOR SALES IN JAPAN HAS LONG BEEN ONE OF THE MOST CONTENTIOUS TRADE ISSUES BETWEEN THE US AND JAPAN AND HAS PRODUCED A SERIES OF TRADE PACTS SINCE 1986 SEEKING TO ENSURE THAT FOREIGN CHIP MAKERS ENJOY AT LEAST A 20 MARKET SHARE IN JAPAN THE MOST RECENT SUCH AGREEMENT HAD CALLED FOR A 20 FOREIGN SHARE BY THE END OF 1992 A GOAL NEITHER GOVERNMENT HAD EXPECTED TO ACHIEVE IN THE THIRD QUARTER OF 1992 FOR INSTANCE FOREIGN COMPANIES' SALES DROPPED SLIGHTLY FROM THE QUARTER BEFORE TO 159 OF THE MARKET FOREIGN CHIP MAKERS WERE HELPED BY THE OVERALL WEAKNESS OF THE JAPANESE SEMICONDUCTOR MARKET WHICH BY SOME JAPANESE ESTIMATES SHRANK BY 62 IN 1992 TO 2111 BILLION FROM 2250 BILLION OFFICIALS FROM BOTH US INDUSTRY AND JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY HOWEVER SAID FOREIGN SALES WERE ALSO BOOSTED BY A NUMBER OF MANUFACTURING TIEUPS BETWEEN US AND JAPANESE COMPANIES AS WELL AS JAPANESE CUSTOMERS' UNPRECEDENTED EFFORTS TO BUY FOREIGN CHIPS IN THE PAST DURING A RECESSION OUR SHARE OF THE JAPANESE MARKET HAS ALWAYS DROPPED SAID NORMAN NEUREITER A DIRECTOR OF TEXAS INSTRUMENTS JAPAN LTD A UNIT OF TEXAS INSTRUMENTS INC IN DALLAS AND CHAIRMAN OF THE US SEMICONDUCTOR INDUSTRY ASSOCIATION IN JAPAN THE FACT THAT WE GAINED SHARE COLLECTIVELY IN 1992 IS A REMARKABLE PHENOMENON WILFRED CORRIGAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LSI LOGIC CORP A CHIP MAKER IN MILPITAS CALIF SAID THE US INDUSTRY'S 20 SHARE WAS ONLY A BEGINNING AND THAT US COMPANIES EXPECT TO SEE THEIR SLICE OF THE JAPANESE MARKET GROW IN THE YEARS AHEAD THE NEW FIGURES WILL LIKELY COOL HOTTEMPERED RHETORIC ON BOTH SIDES MR KANTOR FOR INSTANCE HINTED AT INCREASED US PRESSURE ON JAPAN WHEN HE RECENTLY SAID HE WOULD CONSIDER A FAILURE TO ACHIEVE 20 A COMMITMENT NOT KEPT BY THE JAPANESE IN TURN ANONYMOUS MINISTRY OFFICIALS QUOTED IN THE JAPANESE PRESS ACCUSED US COMPANIES OF CANCELING MILLIONS OF DOLLARS IN SEMICONDUCTOR ORDERS FROM JAPANESE COMPANIES ASSERTIONS THAT THE EMBARRASSED MINISTRY LATER HAD TO DENY THE SUCCESSFUL OUTCOME OF THE SEMICONDUCTOR INITIATIVE MAY COME BACK TO HAUNT JAPAN MR KANTOR SAID HE WILL PRESS THE JAPANESE TO HELP FOREIGN FIRMS AVERAGE A 20 MARKET SHARE THROUGHOUT 1993 BUT THE JAPANESE HAVE SAID THEY HATE USING NUMERICAL GOALS AND WON'T EVER DO SO AGAIN AFTER SETTING A MARKET SHARE FIGURE IN THE SEMICONDUCTOR AGREEMENT WE HAVE LEARNED WE WILL NEVER REPEAT SUCH AN APPROACH SAID TATSUYA TERAZAWA DEPUTY DIRECTOR OF THE MINISTRY'S AMERICAS DIVISION US OFFICIALS HOWEVER HAVE DRAWN EXACTLY THE OPPOSITE LESSONS I THINK THE SUCCESS OF THE CHIP PACT DOES SHOW THE ABILITY OF THE SYSTEM TO DELIVER AND THE INFLUENCE THE GOVERNMENT CAN BRING TO BEAR AGAINST THE INDUSTRY SAID ONE US GOVERNMENT OFFICIAL US AND JAPANESE SEMICONDUCTOR NEGOTIATORS WILL MEET TO DISCUSS THE FUTURE OF THE SEMICONDUCTOR ACCORD TODAY AND TOMORROW IN HONOLULU THE ABILITY OF US COMPANIES TO GAIN A LARGE FOOTHOLD IN JAPAN THROUGH THE USE OF NUMERICAL GOALS WILL PROBABLY EMBOLDEN OTHER HIGHTECH INDUSTRIES TO PUSH FOR SIMILAR SETASIDES PRESIDENT CLINTON HAS INDICATED HE FAVORED SUCH AN APPROACH AND MR KANTOR SAID THE US WOULD EVALUATE SETASIDES FOR OTHER SECTORS AMONG THOSE EXPECTED TO BE CONSIDERED ARE SUPERCOMPUTERS AND ADVANCED MATERIALS CRITICS OF THIS APPROACH WARN THAT QUOTAS COULD HURT THE US BY ALLOCATING MARKETS BY POLITICAL MUSCLE RATHER THAN PRODUCT QUALITY OR SALES SKILL IN ADDITION SETASIDES COULD BE USED TO LIMIT US SALES AS WELL AS SPUR THEM CRITICS SAY DAVID P HAMILTON IN TOKYO CONTRIBUTED TO THIS ARTICLE 9303220112 930322 WORLD MARKETS AS ECONOMIC WEAKNESS SPREADS THROUGH EUROPE STOCK STRATEGISTS FIND IT HARDER TO EKE OUT GAINS BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IF THE STOCK MARKET ADAGE SELL IN MAY THEN GO AWAY IS TRUE THE MONTH SEEMS TO BE COMING EARLY ON EUROPE'S EXCHANGES NERVOUS PORTFOLIO STRATEGISTS HAVE BEGUN WHISPERING THE WORDS MARKET CORRECTION PROFITTAKING AND EVEN BEAR RUN AS THEY CAST ABOUT FOR NEW COUNTRIES AND SECTORS TO SQUEEZE OUT GAINS THE CLOSER THEY LOOK THE LESS THEY ARE FINDING AS IT APPEARS INCREASINGLY LIKELY THAT ECONOMIC WEAKNESS IN EUROPE WILL BE DEEP AND WIDESPREAD IN ADDITION EQUITY MARKETS ARE BECOMING FRUSTRATED BY THE PACE OF INTEREST RATE REDUCTIONS THE BUNDESBANK'S 1/2POINT CUT IN ITS LOMBARD RATE LAST WEEK IS WIDELY JUDGED THE LEAST THE GERMAN CENTRAL BANK COULD DO WHILE MANY CONTINUE TO EXPECT A SUBSTANTIAL EASING IN GERMAN RATES BY THE END OF THE YEAR MARKET PLAYERS ARE ADJUSTING TO THE IDEA THAT THE CENTRAL BANKERS ARE UNLIKELY TO IGNITE POWERFUL RALLIES IN THE COMING MONTHS EQUITY EXPERTS NOW THINK MUCH OF THE OPTIMISM ABOUT LOWER INTEREST RATES HAS ALREADY BEEN FACTORED INTO CURRENT PRICES TAKING A STEP BACK TO LOOK AT MARKET PERFORMANCE THE NUMBERS TO DATE LOOK IMPRESSIVE ITALIAN STOCKS HAVE POSTED NEARLY 18 RETURNS SINCE THE BEGINNING OF THE YEAR IN LOCAL CURRENCY TERMS GERMANY AND SPAIN ARE UP ABOUT 9 WHILE FRANCE AND THE NETHERLANDS HAVE POSTED GAINS OF ABOUT 650 IN LONDON EUROPE'S LARGEST MARKET PRICES ARE ONLY ABOUT 2 HIGHER SINCE THE START OF THE YEAR BUT UK STOCKS HAVE GAINED ALMOST 17 SINCE JAN 1 1992 POSTING MOST OF THEIR ADVANCES AFTER THE POUND WAS FLOATED IN SEPTEMBER ALSO SINCE THE BEGINNING OF 1992 SWISS SHARE PRICES ARE 28 HIGHER AND FINNISH SHARES ARE UP 23 ON FRIDAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FINISHED THE DAY WITH A RISE OF 204 POINTS TO 29001 THE FT 30STOCK INDEX GAINED 213 POINTS TO CLOSE AT 22686 VOLUME WAS 8236 MILLION SHARES UP FROM 7063 MILLION THURSDAY IN FRANKFURT SHARE PRICES ENDED MIXED IN TRADING DRIVEN BY THE EXPIRATION OF OPTIONS ON THE GERMAN FUTURES AND OPTIONS EXCHANGE THE DAX 30STOCK INDEX EDGED UP 262 POINTS OR 015 TO 169881 POINTS HOWEVER THE INDEX ENDED THE WEEK DOWN 883 POINTS IN THE FIRST TWO AND A HALF MONTHS SO FAR EUROPEAN MARKETS HAVE PRODUCED ALMOST ALL THE GAINS WE EXPECTED FOR THE WHOLE OF 1993 SAYS RICHARD DAVIDSON STRATEGIST AT MORGAN STANLEY INTERNATIONAL CONSIDERING WE'RE GOING TO HAVE A BAD YEAR FOR GROWTH THERE'S VERY LITTLE CHEAP STUFF OUT THERE LOOKING AT PRICE/EARNINGS RATIOS ON A FIVEYEAR HISTORIC AVERAGE STOCKS IN ALL OF EUROPE'S MAJOR MARKETS EXCEPT SPAIN LOOK EXPENSIVE BERT JANSEN HEAD OF EQUITY STRATEGY AT BANQUE PARIBAS THINKS THAT GIVEN THE REASONABLE P/E RATIOS IN SPAIN CURRENTLY ABOUT 11 AND THE POTENTIAL FOR SHARPLY LOWER INTEREST RATES SPANISH STOCKS ARE ABOUT THE ONLY DECENT BUY IN EUROPE SPANISH SHORTTERM INTEREST RATES AT 15 ARE AMONG THE HIGHEST IN EUROPE KEPT AT THOSE LEVELS TO PROTECT THE PESETA IN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM WHEN AND IF THE CURRENT TENSIONS IN THE SYSTEM EASE MANY ANALYSTS EXPECT RATES TO GRADUALLY DROP THE MAIN PLUS FOR THE MADRID MARKET IS THAT ROUGHLY TWOTHIRDS OF ITS LARGEST STOCKS WOULD BENEFIT GREATLY FROM LOWER RATES BECAUSE THEY ARE EITHER IN THE BANKING AND INSURANCE SECTORS OR HAVE HEAVY DEBT LOADS BEYOND SPAIN THE PICKINGS LOOK SLIM AND MOST STOCK ANALYSTS BELIEVE IT IS TOO EARLY IN THE CONTINENTAL ECONOMIC CYCLE TO BEGIN BUYING CYCLICALS SUCH AS CHEMICALS AUTOMOBILES AND CAPITALGOODS PRODUCERS FUND MANAGERS ARE BOUNCING UP AND DOWN ON THEIR SEATS ASKING THEMSELVES IF IT'S TIME TO TAKE PROFITS SAYS MIKE YOUNG DIRECTOR OF INVESTMENT STRATEGY AT MERRILL LYNCH INTERNATIONAL LTD MR YOUNG BELIEVES STOCK PICKERS IN EUROPE SHOULD BECOME MORE SELECTIVE PARTICULARLY IN THE FINANCIAL SECTOR THAT CATEGORY INCLUDING BANKS AND INSURANCE COMPANIES HAS BEEN THE INVESTMENT THEME OF THE PAST SIX MONTHS SO FAR FINANCIAL ISSUES HAVE OUTPERFORMED THE GENERAL INDEXES IN ALMOST ALL MARKETS SOMETIMES BY AS MUCH AS 5 TO 10 BEHIND THE PRICE PERFORMANCE IS THE BROAD EXPECTATION THAT SHARP DECLINES IN INTEREST RATES ACROSS EUROPE WILL HAVE A POSITIVE IMPACT ON THE QUALITY OF ASSETS HELD BY BANKS AND INSURANCE COMPANIES BUT THERE ARE PROBLEMS WITH THAT THEORY INCLUDING THE POSSIBILITY THAT EVEN WITH RAPIDLY DECLINING SHORTTERM INTEREST RATES THE LIKELY WORSENING OF EUROPEAN ECONOMIES WILL CONTINUE TO HIT PROPERTY VALUES AND HINDER DEBT SERVICING BY BUSINESSES LEADING BANKS TO TAKE FURTHER PROVISIONS THIS YEAR MR YOUNG FAVORS SHIFTING TO HIGHER QUALITY BANKS INCLUDING A SWITCH FROM FRENCH TO GERMAN FINANCIAL SHARES STOCKS HAVE PROBABLY RUN THEIR COURSE IN FRANCE HE SAYS THE VIEW THAT FRENCH STOCKS ARE STARTING TO FIZZLE IS SPREADING FAST IT SEEMS CLEAR THAT INTERNATIONAL INVESTORS WON'T INCREASE THEIR STAKES ON THE PARIS BOURSE UNTIL MIDAPRIL BY WHICH TIME THE FALLOUT FROM PARLIAMENTARY ELECTIONS THAT BEGAN YESTERDAY SHOULD BE OVER INTERNATIONAL INVESTMENT BANKS REMAIN MOST NEGATIVE ON THE GERMAN MARKET ALL BUT A FEW FINANCIAL STOCKS ARE EXPECTED TO BE HIT HARD BY THE SHARP ECONOMIC SLOWDOWN AND CORPORATE EARNINGS FORECASTS ARE LIKELY TO BE REVISED DOWNWARD NEARLY ACROSS THE BOARD WAVES OF PROFITTAKING BATTERED TOKYO STOCKS FRIDAY FOLLOWING A RALLY THE DAY EARLIER THAT LIFTED THE KEY NIKKEI INDEX MORE THAN 3 BUT FINANCIALS AND OTHER LAGGARD SHARES PUSHED AHEAD IN HEAVY TRAFFIC THE NIKKEI 225STOCK INDEX FELL BACK 19073 POINTS TO 1853717 AFTER SURGING 55453 POINTS THURSDAY ON MONDAY THE NIKKEI REBOUNDED 16655 POINTS TO CLOSE THE MORNING SESSION AT 1870372 FRIDAY'S MAIN GAINERS WERE TRUST BANKS BROKERAGES AND TRADING HOUSES THE UNDERACHIEVERS TO DATE FIRSTSECTION VOLUME WAS ESTIMATED AT A HARDY 620 MILLION SHARES DOWN FROM 6655 MILLION SHARES THURSDAY LOSERS OVERWHELMED GAINERS 596 TO 462 WHILE 116 ISSUES WERE UNCHANGED THE TOKYO STOCK PRICE INDEX OF ALL FIRSTSECTION ISSUES WHICH CLIMBED 4261 POINTS THURSDAY DROPPED A SCANT 157 POINTS OR 011 TO 140669 IN SYDNEY SHARE PRICES RESUMED THEIR RISE LEADING THE MARKET BAROMETER TO ANOTHER NINEMONTH HIGH OPTIMISM ABOUT A NEARTERM CUT IN INTEREST RATES AND STRONGER OVERSEAS MARKETS THURSDAY HELPED TO MAINTAIN BUOYANT SENTIMENT IN AUSTRALIA THE ALLORDINARIES INDEX OF SHARE PRICES CLOSED AT 16771 UP 75 POINTS AND ITS HIGHEST LEVEL SINCE LAST JUNE 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 9303220111 930322 JWP TO SHED INFORMATION SERVICES LINE STRESS ITS CORE SUBCONTRACTING BUSINESS BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL RYE BROOK NY JWP INC PRACTICALLY CONCEDING ITS 1991 ACQUISITION OF COMPUTER DEALER BUSINESSLAND INC WAS A FLOP SAID FRIDAY IT PLANS TO SELL ITS INFORMATION SERVICES BUSINESS AND FOCUS ON ITS CORE SUBCONTRACTING OPERATIONS JWP'S DECISION TO SELL THE VOLATILE UNIT BRINGS THE TECHNICAL SERVICES CONCERN FULL CIRCLE BACK TO BEING A NUTSANDBOLTS SUBCONTRACTOR OF ELECTRICAL AND MECHANICAL SERVICES FOR LARGE CONSTRUCTION PROJECTS THE SALE IS EXPECTED TO CAP A STRING OF DIVESTITURES INITIATED LAST YEAR TO REVERSE AN ACQUISITION SPREE THAT TURNED OUT TO BE ILLTIMED WHEN JWP RAN HEADLONG INTO A SLUMP IN THE CONSTRUCTION INDUSTRY AND COMPUTER PRICE WARS THE COMPANY REMAINS SADDLED WITH 500 MILLION IN DEBT FROM ITS BUYING BINGE JWP PAID 74 MILLION IN CASH AND SECURITIES FOR BUSINESSLAND BUT ANALYSTS SAID IT'S DIFFICULT TO SPECULATE WHAT PRICE IT WILL FETCH FOR THE BUSINESS CLEARLY WE TRIED TO DO TOO MANY THINGS ANDREW T DWYER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW NOW JWP HAS TO DO SOME THINGS EXTREMELY WELL AND BE MORE PREDICTABLE JWP ALSO SAID IT EXPECTS TO REPORT A FOURTHQUARTER LOSS OF AT LEAST 265 MILLION COMPARED WITH NET INCOME OF 161 MILLION OR 39 CENTS A SHARE A YEAR EARLIER THE QUARTER WILL INCLUDE RESTRUCTURING CHARGES TOTALING AT LEAST 100 MILLION INCLUDING A 60 MILLION WRITEOFF OF GOODWILL AND OTHER INTANGIBLES RELATED TO THE INFORMATION SERVICES BUSINESS AND 35 MILLION OF CHARGES FOR CONSOLIDATING AND REDUCING BOTH ITS CORE OPERATIONS AND INFORMATION SERVICES UNIT THE INFORMATION SERVICES UNIT CONSISTS MAINLY OF COMPUTER RESELLING JWP HAD PREVIOUSLY SHED THE RETAIL COMPUTER OPERATIONS OF BUSINESSLAND THE FOURTHQUARTER LOSS ALSO WILL INCLUDE A CHARGE OF 31 MILLION RELATED TO THE COMPANY'S DEFERRED TAX ASSET AND A GAIN OF 12 MILLION FROM THE SALE OF ITS MAJOR ENVIRONMENTAL SERVICES BUSINESSES SHARES OF JWP EASED 125 CENTS TO 4125 IN NEW YORK STOCK EXCHANGE TRADING FRIDAY THE STOCK HAS PLUMMETED FROM A HIGH OF 1975 A YEAR AGO SHORTLY BEFORE JWP BEGAN UNLEASHING A SPATE OF BAD NEWS IRONICALLY THE DECISION TO SELL THE INFORMATION SERVICES BUSINESS COMES AS THE UNIT IS POSTING STRONG SALES AND A RECORD BACKLOG OF COMPUTERS ORDERED FOR SHIPMENT ANALYST JAMES G JOYCE OF FIRST ALBANY CORP SAID ALTHOUGH SALES HAVE GROWN THE OPERATIONS HAVE BEEN BUFFETED BY FIERCE PRICE WARS RAGING IN THE COMPUTER INDUSTRY IT'S A BUSINESS THAT HAD REAL OPPORTUNITIES BUT IS INHERENT WITH REAL INSTABILITIES MR DWYER SAID THE INFORMATION SERVICES UNIT WHICH HAS 3000 EMPLOYEES HAD 1992 REVENUE OF ABOUT 17 BILLION BUT MR JOYCE SAID IT IS LADEN WITH POSSIBLY HUNDREDS OF MILLIONS OF SOCALLED FLOORFINANCING DEBT OR ACCOUNTS RECEIVABLE FOR COMPUTERS ORDERED BY CUSTOMERS BUT NOT YET SOLD WHILE MR JOYCE SAID HE HOPES THE UNIT WILL BRING 100 MILLION TO 200 MILLION HE NOTED THE COMPANY ISN'T GIVING ANALYSTS ANY GUIDANCE UNTIL FINAL AUDITED 1992 RESULTS ARE AVAILABLE IN APRIL JWP HAD SEVERAL PRELIMINARY INQUIRIES ABOUT THE UNIT BEFORE ITS BOARD DECIDED THURSDAY TO SELL IT MR DWYER SAID HE DECLINED HOWEVER TO IDENTIFY THE INTERESTED PARTIES EXCLUDING THE SALE OF INFORMATION SERVICES MR DWYER SAID THE COMPANY EXPECTS TO RAISE 250 MILLION OR MORE FROM ALL ASSET SALES ANALYSTS SUGGESTED JWP WAS PRESSURED TO SELL THE UNIT BY BANKS AND OTHER CREDITORS IN NEGOTIATIONS WITH THE COMPANY BUT MR DWYER SAID THE MOVE WAS A BOARD DECISION HE ALSO SAID JWP PLANS TO ASK CREDITORS FOR AN EXTENSION OF A STANDSTILL AGREEMENT THAT EXPIRES APRIL 30 THE LENDERS HAVE AGREED NOT TO TAKE ANY ACTION AGAINST THE COMPANY WHICH HAS SUSPENDED INTEREST PAYMENTS ON ITS DEBT DURING THAT PERIOD JWP'S DIVESTITURES WILL LEAVE THE COMPANY WITH ABOUT 2 BILLION IN REVENUE AND 15000 EMPLOYEES DOWN FROM A PEAK OF ABOUT 4 BILLION IN REVENUE EXPECTED TO BE REPORTED FOR 1992 AND 20000 EMPLOYEES JUST SIX MONTHS AGO MR DWYER SAID HE TOLD ANALYSTS HE EXPECTS THE COMPANY'S CORE BUSINESS TO POST PROFIT MARGINS OF ABOUT 3 ONCE THE RESTRUCTURING IS COMPLETED MR DWYER SAID THE COMPANY IS BANKING ON ITS DOMINANT POSITION AS A SUBCONTRACTOR OF MECHANICAL AND ELECTRICAL SERVICES FOR COMMERCIAL BUILDING AND PUBLIC WORKS PROJECTS THOSE OPERATIONS HAD A BACKLOG OF ABOUT 15 BILLION AS OF DEC 31 WITH THE CONSTRUCTION INDUSTRY STILL IN THE DOLDRUMS HOWEVER THEY'RE NOT OUT OF THE WOODS YET ANALYST JOHN SIMON OF SEIDLER AMDEC SECURITIES INC IN LOS ANGELES SAID DESPITE MR DWYER'S ILLFATED EXPANSION FORAY FIRST ALBANY'S MR JOYCE SAID HE BELIEVES THE CHAIRMAN STILL HAS THE SUPPORT OF THE JWP BOARD THE DIRECTORS HE SAID GAVE MR DWYER A VOTE OF CONFIDENCE JUST LAST FALL DURING A POWER STRUGGLE WITH DAVID L SOKOL WHO WAS PRESIDENT FOR LESS THAN A YEAR I THINK MR DYWER IS A SADDER AND WISER MAN MR JOYCE ADDED BUT HE'S EMBARKED ON AN EFFORT TO SAVE THE COMPANY 9303220110 930322 CREDIT RATINGS CITICORP NEW YORK MOODY'S INVESTORS SERVICE INC PLACED THIS BANKING COMPANY'S BA1 PREFERRED STOCK RATING AND ITS PRIME3 COMMERCIAL PAPER RATING ON REVIEW FOR POSSIBLE UPGRADE CITING STRONG EARNINGS GROWTH MOODY'S SAID THE REVIEW WAS PROMPTED BY THE SUBSTANTIAL INCREASE IN THE EARNINGS OF THE COMPANY AND THE RESULTING ENHANCED PROTECTION THUS AFFORDED THE DIVIDENDS ON ITS PREFERRED STOCK AND BY THE IMPROVEMENT IN CITICORP'S LIQUIDITY AT THE PARENT AND OPERATING LEVELS IT ADDED THAT THE REVIEW WILL FOCUS ON THE OUTLOOK FOR IMPROVEMENT IN CITICORP'S ASSET QUALITY WHICH CONTINUES TO BE BURDENED BY A HIGH LEVEL OF PROBLEM ASSETS AS WELL AS ON THE PROSPECTS FOR FURTHER IMPROVEMENT IN THE COMPANY'S CORE EARNINGS MOODY'S ALSO CONFIRMED THE LONGTERM DEBT RATINGS OF CITICORP BAA2 FOR SENIOR BAA3 FOR SUBORDINATED CRESTAR FINANCIAL CORP RICHMOND VA MOODY'S INVESTORS SERVICE INC UPGRADED THE LONGTERM DEBT RATING OF CRESTAR TO BAA1 FROM BAA2 ABOUT 290 MILLION IN DEBT WAS AFFECTED THE RATINGS AGENCY CITED RAPIDLY IMPROVING REAL ESTATE HOLDINGS AND BETTER ASSET QUALITY MOODY'S ADDED THAT THOUGH CRESTAR'S PROFITABILITY REMAINS MEDIOCRE THE COMPANY HAS GOOD LIQUIDITY PROGRESSIVE CORP MAYFIELD OHIO MOODY'S INVESTORS SERVICE INC CITING SIGNIFICANT FINANCIAL LEVERAGE LOWERED THE SENIOR DEBT RATINGS OF PROGRESSIVE THE RATING AGENCY ALSO CITED LIMITED LONGTERM GROWTH POTENTIAL IN AUTOMOBILE INSURANCE MOODY'S SAID THAT PROGRESSIVE IS A LEADING WRITER OF NONSTANDARD AUTO INSURANCE AND HAS A REPUTATION FOR SUPERIOR CUSTOMER SERVICE MOODY'S LOWERED RATINGS ON THE COMPANY'S SENIOR DEBT TO SINGLEA3 FROM SINGLEA2 ITS SUBORDINATED DEBT TO BAA1 FROM A3 AND ITS PREFERRED STOCK TO SINGLEA3 FROM SINGLEA2 FINANCIAL STRENGTH RATINGS OF PROGRESSIVE'S INTERCOMPANY POOL MEMBERS WERE LOWERED TO SINGLEA1 FROM DOUBLEA3 COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT MNC FINANCIAL INC NEW YORK MOODY'S INVESTORS SERVICE INC UPGRADED THE PREFERRED STOCK RATING OF THIS BALTIMORE BANKING COMPANY FOLLOWING MNC'S PAYMENT OF ITS PREFERRED DIVIDENDS IN ARREARS ABOUT 100 MILLION IN SECURITIES IS AFFECTED THE RATING AGENCY SAID MOODY'S RAISED THE RATING TO SINGLEB2 FROM CAA BASED ON THE PAIDUP ARREARAGES AND THE RESUMPTION OF QUARTERLY PREFERRED DIVIDENDS THE PREFERRED RATING IS UNDER REVIEW FOR FURTHER UPGRADE IN LIGHT OF NATIONSBANK CORP'S PENDING ACQUISITION OF MNC NATIONSBANK BASED IN CHARLOTTE NC IS A MULTIBANK HOLDING COMPANY SIGNET BANKING CORP RICHMOND VA MOODY'S INVESTOR SERVICE INC RAISED ITS LONGTERM DEBT RATING FOR SIGNET BANKING TO BAA2 FROM BA1 ABOUT 260 MILLION IN DEBT WAS AFFECTED THE RATINGS AGENCY CITED IMPROVED ASSET QUALITY CONTINUED LIQUIDATION OF RISKIER REAL ESTATE HOLDINGS AND DECLINING NONPERFORMING LOANS SUPERMARKETS GENERAL HOLDINGS CORP NEW YORK STANDARD & POOR'S CORP SAID IT WOULD CONSIDER UPGRADING THE SUBORDINATED DEBT RATING OF SUPERMARKETS GENERAL FOLLOWING ITS RECENTLY ANNOUNCED FINANCIAL RESTRUCTURING PLAN THE SINGLEBMINUS RATING IS ON CREDITWATCH WITH POSITIVE IMPLICATIONS SUPERMARKETS GENERAL'S IMPLIED SENIOR RATING IS SINGLEBPLUS S&P SAID THE POTENTIAL FOR A DEBT UPGRADE REFLECTS THE REPLACEMENT OF MORE THAN 1 BILLION OF HIGHINTEREST DEBT WITH 530 MILLION OF LOWERCOST DEBT A 500 MILLION BANK TERM LOAN AND A 175 MILLION WORKING CAPITAL FACILITY THE RESTRUCTURING PLAN ALSO INCLUDES A 160 MILLION INITIAL PUBLIC OFFERING OF SHARES BY ITS PATHMARK STORES INC UNIT THESE POSITIVE FACTORS WILL BE WEIGHED AGAINST THE RISKS INHERENT IN PATHMARK'S ANNOUNCED ACCELERATED CAPITAL SPENDING PROGRAM TOTALING 275 MILLION S&P SAID 9303220109 930322 TECHNOLOGY MICROGRAFX EXPECTS FOURTHPERIOD LOSS DISCLOSES POSSIBLE CRIMINAL ACTS AT UNIT BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL RICHARDSON TEXAS CONTINUING THE TURMOIL THAT HAS WRACKED THE COMPANY IN RECENT MONTHS MICROGRAFX INC INDICATED THAT IT EXPECTS A SIZABLE FOURTHQUARTER LOSS DISCLOSED POSSIBLE CRIMINAL ACTS AT ITS JAPANESE UNIT AND ANNOUNCED THE RESIGNATION OF ITS CHIEF FINANCIAL OFFICER J PAUL GRAYSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE MAKER OF COMPUTER GRAPHICS SOFTWARE WILL REPORT LOSSES FOR BOTH THE FOURTH QUARTER AND THE YEAR ENDING MARCH 31 BECAUSE OF UNEXPECTEDLY SLOW SALES IN WHAT IS USUALLY A STRONG QUARTER MR GRAYSON WOULDN'T PROJECT THE SIZE OF THE LOSSES IN THE YEAR'S FIRST NINE MONTHS MICROGRAFX HAD A PROFIT OF 14 MILLION OR 17 CENTS A SHARE A YEAR EARLIER MICROGRAFX EARNED 2 MILLION OR 25 CENTS A SHARE FOR THE FOURTH QUARTER AND 51 MILLION OR 65 CENTS A SHARE FOR THE FISCAL YEAR THE LOSS IN THE MOST RECENT QUARTER IS EXPECTED TO INCLUDE A CHARGE FOR STAFF REDUCTIONS AND A 500000 CHARGE FOR A LOSS AT THE JAPANESE UNIT THE COMPANY SAID THAT IN RESPONSE TO INDUSTRY PRESSURES IT IS SHRINKING ITS 350PERSON WORK FORCE BY ABOUT 20 AND WILL MAKE 8 MILLION TO 10 MILLION IN COST REDUCTIONS AS PART OF WHAT IT TERMED A REALIGNMENT THE COMPANY SAID THAT DAVID HENKEL ITS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WILL RESIGN IN THE NEAR FUTURE MR GRAYSON WOULDN'T PROVIDE AN EXPLANATION OF MR HENKEL'S SUDDEN DECISION BUT SAID THAT IN OUR DISCUSSIONS WITH HIM WE AGREED IT WAS BEST FOR HIM AND FOR US IF HE RESIGNED MR HENKEL COULDN'T BE REACHED TO COMMENT JOSEPH KUPKE ONE OF THE COMPANY'S FOUNDERS AND FORMER CHIEF FINANCIAL OFFICER WILL SERVE AS ACTING CHIEF FINANCIAL OFFICER UNTIL A SUCCESSOR IS FOUND MICROGRAFX SAID MR HENKEL'S DEPARTURE WASN'T LINKED TO THE DISCOVERY OF POSSIBLE CRIMINAL MISMANAGEMENT OF FUNDS AT ITS JAPANESE UNIT WHICH MAY RESULT IN A LOSS OF ABOUT 500000 MR GRAYSON SAID THE MANAGER OF THE MICROGRAFX KK UNIT WAS FIRED IN EARLY MARCH AFTER THE COMPANY DISCOVERED SOME TYPE OF ILLEGAL ACTIVITY INVOLVING CORPORATE FUNDS MR GRAYSON SAID THE COMPANY IS INVESTIGATING THE ALLEGED FRAUD THESE LATEST REVELATIONS FOLLOW THE BITTER NOVEMBER BOARDROOM BATTLE THAT LED TO THE RESIGNATION UNDER FIRE OF GEORGE GRAYSON THENPRESIDENT AND CHIEF OPERATING OFFICER AND A COMPANY FOUNDER IN THE MIDST OF A DECLINE IN PROFITS THE BOARD ATTEMPTED TO REMOVE GEORGE GRAYSON J PAUL GRAYSON'S BROTHER FROM DAYTODAY OPERATIONS AND GIVE HIM ANOTHER POSITION HE REFUSED THE OFFER AND RESIGNED IN NATIONAL OVERTHECOUNTER TRADING FRIDAY MICROGRAFX FELL 10 TO 775 DOWN 875 CENTS THE DROP OCCURRED BEFORE TRADING IN MICROGRAFX STOCK WAS HALTED AT 3 PM EST THE COMPANY ISSUED ITS NEWS RELEASE FOUR MINUTES LATER COMPANY OFFICIALS SAID THEY COULDN'T EXPLAIN THE REASON FOR THE EARLY DECLINE 9303220108 930322 ENTERPRISE WASHINGTON UPDATE HIGHTECH STARTUPS TRY TO CASH IN ON CLINTON INITIATIVE BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL SMALL HIGHTECH FIRMS SEEK TO BENEFIT FROM CLINTON'S TECHNOLOGY PLANS SUCH COMPANIES HOPE TO CAPITALIZE ON PRESIDENT CLINTON'S PLANS ANNOUNCED LAST MONTH TO INCREASE ANNUAL FEDERAL SPENDING FOR CIVILIAN RESEARCH AND DEVELOPMENT BY 31 TO 366 BILLION THE INCREASE IS PART OF THE PRESIDENT'S PLAN TO BACK THE DEVELOPMENT OF COMMERCIALLY USEFUL TECHNOLOGIES THE ACADEMY OF TECHNOLOGY ENTREPRENEURS AND INNOVATORS REPRESENTING ABOUT 100 SMALL COMPANIES INTENDS TO ASK THE ADMINISTRATION TO DIRECT MORE FEDERAL RESEARCH MONEY TO SMALL HIGHTECH FIRMS THE ACADEMY ALSO WILL SEEK GREATER ACCESS TO FEDERAL ADVANCEDTECHNOLOGY PROGRAMS THAT SO FAR HAVE INCLUDED MOSTLY LARGER BUSINESSES SAYS MILTON STEWART ITS VICE CHAIRMAN IN ADDITION THE PHOENIX GROUP WILL PROPOSE A SPECIAL LOAN PROGRAM FOR HIGHTECH COMPANIES CAUGHT BETWEEN FUNDING CYCLES IN THE SMALL BUSINESS INNOVATION RESEARCH PROGRAM THE RESEARCH PROGRAM RUN BY THE SMALL BUSINESS ADMINISTRATION TARGETS SMALL FIRMS FOR A SHARE OF 11 FEDERAL AGENCIES' RESEARCH BUDGETS PAUL AND SARAH EDWARDS WHO RUN THE WORKING FROM HOME FORUM AN ELECTRONIC BULLETIN BOARD AVAILABLE ON COMPUSERVE INC'S COMPUTERSERVICES NETWORK SAY THEY WROTE TO PRESIDENT CLINTON URGING HIM TO FOCUS ON VERY SMALL STARTUP BUSINESSES SMALL TECHNOLOGY COMPANIES FAVOR THE PRESIDENT'S ECONOMIC PLAN TO PROVIDE INVESTMENT TAX CREDITS MORE THAN COMPANIES THAT JUST USE TECHNOLOGY THE SANTA MONICA CALIF COUPLE SAYS WHETHER OR NOT THEY LIKE THE PLAN'S DETAILS THESE FIRMS LIKE THE IDEA THAT A DIRECTION IS BEING TAKEN MR EDWARDS ADDS MILITARY BASE CLOSINGS MAY CREATE A WAVE OF SMALLBUSINESS CASUALTIES LOCAL REAL ESTATE FIRMS AND FASTFOOD RESTAURANTS ARE LIKELY TO BE HIT HARDEST BY THE CLINTON ADMINISTRATION'S MOVE TO CLOSE 31 BASES AND SCALE BACK 134 OTHERS SAYS KEITH CUNNINGHAM A POLICY ANALYST WITH BUSINESS EXECUTIVES FOR NATIONAL SECURITY A THINK TANK IN WASHINGTON REAL ESTATE AGENTS AND EATERIES NEAR BASES WITHOUT THEIR OWN HOUSING OR OTHER SERVICES WILL BE ESPECIALLY VULNERABLE SOME LOCAL BUSINESSES WERE WIPED OUT ENTIRELY BY SEVERAL BASE CLOSINGS IN 1991 SOMETIMES WHEN WE CALLED TO ASSESS THE IMPACT THE PHONES ALREADY HAD BEEN DISCONNECTED MR CUNNINGHAM SAYS THE ADMINISTRATION AND CONGRESS MUST WORK OUT THE FINAL LIST OF NEW BASE CLOSINGS FORT SMITH ARK ALREADY IS BRACING FOR A SETBACK NEXT YEAR WHEN NEARBY FORT CHAFFEE ARMY BASE CHANGES FROM A MAJOR TRAINING CENTER FOR LARGESCALE MANEUVERS TO A MINOR RESERVISTS' POST LOCAL OFFICIALS ESTIMATE THAT THE AREA'S ECONOMY IS LIKELY TO LOSE 240 MILLION AS THE NUMBER OF MILITARY PERSONNEL SHRINKS THEY LIVE IN OUR HOUSING EAT IN OUR RESTAURANTS AND STAY IN OUR MOTELS SAYS BILLY DOOLY PRESIDENT OF FORT SMITH'S CHAMBER OF COMMERCE ADVANCE PLANNING BY LOCAL GOVERNMENT AND BUSINESSES IS CRITICAL TO EASING THE IMPACT OF A BASE CLOSING MR CUNNINGHAM SAYS IN A RECENT STUDY OF 24 BASE CLOSINGS THAT APPEARS TO BE THE CASE IN ALEXANDRIA LA LAST DECEMBER'S CLOSING OF THE NEARBY ENGLAND AIR FORCE BASE IS EXPECTED TO COST THE TOWN OF 50000 85 MILLION A YEAR IN LOST BUSINESS REVENUE BUT PLANS TO CONVERT THE BASE INTO A PRIVATE TRUCK MAINTENANCE AND REPAIR CENTER ARE EXPECTED TO OFFSET THE LOSS WITHIN FOUR YEARS TOP CANDIDATES HAVE EMERGED FOR THE POST OF THE SMALL BUSINESS ADMINISTRATION'S CHIEF COUNSEL FOR ADVOCACY ONE IS CALIFORNIA ATTORNEY MARGARET SMITH WHO REPRESENTS SMALL AND MIDSIZE SILICON VALLEY CONCERNS AND EXPORTERS ANOTHER IS JERE GLOVER GENERAL COUNSEL OF THE NATIONAL ASSOCIATION FOR THE SELFEMPLOYED IN WASHINGTON TAXCREDIT EFFECT A SURVEY BY ACCOUNTING FIRM ERNST & YOUNG SUGGESTS SMALL BUSINESSES WOULD BE SPURRED TO INVEST BY A TAX CREDIT ESPECIALLY IF IT WERE BIGGER THAN WHAT PRESIDENT CLINTON HAS PROPOSED HE WANTS A 7 INVESTMENT TAX CREDIT FOR COMPANIES WITH ANNUAL SALES UNDER 5 MILLION UNTIL THE END OF NEXT YEAR THEN A PERMANENT 5 CREDIT ERNST & YOUNG POLLED ABOUT 100 SMALLBUSINESS EXECUTIVES JUST BEFORE DETAILS OF MR CLINTON'S PROPOSAL WERE RELEASED NEARLY TWOTHIRDS SAID A 10 CREDIT WOULD LEAD THEM TO SIGNIFICANTLY INCREASE SPENDING THIS YEAR MARY FRANCES PEARSON A NATIONAL TAX PARTNER FOR ERNST & YOUNG SAYS THE ADMINISTRATION'S INCENTIVES SHOULD APPLY EVEN TO COMPANIES WITH SALES OF 25 MILLION TO 100 MILLION BECAUSE THEY'RE THE LITTLE COMPANIES WITH THE POTENTIAL TO BE THE GENERAL MOTORS OF TOMORROW PRISON INDUSTRIES DRAW INCREASED COMPLAINTS FROM SMALL BUSINESS A COALITION OF FEDERAL CONTRACTORS AGAIN WANTS CONGRESS TO KEEP THE FEDERAL PRISON INDUSTRIES PROGRAM FROM TAKING AWAY AN INCREASING SHARE OF THE LUCRATIVE GOVERNMENT MARKET FOR FURNITURE DRAPERIES AND SOME ELECTRONIC PRODUCTS THE PROGRAM WHICH EMPLOYS 16000 INMATES AT 89 FACTORIES IN 47 PRISONS HAS GROWN RAPIDLY OVER THE LAST SEVERAL YEARS AS THE INMATE POPULATION HAS SWELLED THE GOVERNMENTOWNED CORPORATION OPERATING UNDER THE TRADE NAME UNICOR HAD 417 MILLION IN SALES IN THE YEAR ENDED SEPT 30 1992 THE COALITION FOR GOVERNMENT PROCUREMENT DOMINATED BY SMALL CONTRACTORS CLAIMS UNICOR HAS FORCED PRIVATE COMPANIES OUT OF BUSINESS AND ELIMINATED 2000 PRIVATESECTOR JOBS THE GROUP AND FEDERAL PRISON OFFICIALS HAVE BEEN NEGOTIATING SINCE JUNE IN A CONGRESSIONALLY ORDERED EFFORT TO IMPROVE COMMUNICATIONS AND FIND OTHER MARKETS FOR UNICOR WE'VE MADE MINIMAL PROGRESS COMPLAINS LARRY ALLEN THE COALITION'S EXECUTIVE DIRECTOR KATHLEEN HAWK DIRECTOR OF THE FEDERAL BUREAU OF PRISONS ARGUES THAT UNICOR HAS A NEGLIGIBLE IMPACT ON THE PRIVATE SECTOR SHE SAYS THAT THE PRISON INDUSTRIES PROGRAM IS THE BUREAU'S MOST EFFECTIVE TOOL FOR MANAGING AND REHABILITATING INMATES AS LONG AS THE INMATE POPULATION CONTINUES TO INCREASE WE HAVE TO CONTINUE TO EXPAND BY PROVIDING MORE WORK OPPORTUNITIES MS HAWK SAYS SMALL TALK A QUARTER OF THE MEMBERS OF THE NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS ADDED EMPLOYEES OVER THE PAST TWO YEARS THE SAME PERCENTAGE REPORTED SALES INCREASES OF MORE THAN 20 DURING THAT PERIOD ACCORDING TO A RECENT SURVEY OF THE GROUP'S 4500 MEMBERS DEMOCRATIC SEN DONALD RIEGLE OF MICHIGAN IS INTRODUCING LEGISLATION TO HELP SMALL COMPANIES RAISE MONEY BY DOUBLING TO 10 MILLION THE MAXIMUM SIZE FOR STOCK OFFERINGS EXEMPT FROM FEDERAL SECURITIES RULES 9303220107 930322 INTERNATIONAL VIRGIN PLANS COURT ATTACK ON BRITISH AIR BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL AFTER CALLING OFF PEACE TALKS WITH BRITISH AIRWAYS PLC VIRGIN ATLANTIC AIRWAYS PLANS TO TAKE THE BATTLE OVER ITS COMPETITOR'S DIRTY TRICKS TO THE COURTS IN THE NEXT TWO WEEKS WHILE IT LEFT ROOM TO REOPEN TALKS VIRGIN A UNIT OF BRITAIN'S VIRGIN GROUP PLC EXPECTS TO LAUNCH A THREEPRONGED ATTACK WITH COURT CASES IN THE UK THE US AND THE EUROPEAN COMMUNITY VIRGIN OFFICIALS ALSO SAID THEY WILL ASK THE UK DEPARTMENT OF TRADE AND INDUSTRY TO INVESTIGATE THE ROLE OF BRITISH AIRWAYS' DIRECTORS AND EXECUTIVES IN THE AIRLINE'S EFFORTS TO POACH PASSENGERS FROM VIRGIN BOTH AIRLINES ARE BASED IN THE UK VIRGIN OFFICIALS SAID THEY HOPE TO WIN TENS OF MILLIONS OF POUNDS IN DAMAGES AS COMPENSATION FOR LOST BUSINESS THE COMING COURT BATTLES ARE EXPECTED TO BE VICIOUS AFTER A SIXWEEK EFFORT TO BUILD A BRIDGE BETWEEN BRITISH AIRWAYS AND VIRGIN THE GULF WAS SIMPLY TOO VAST THE TWO SIDES HAD AGREED ON A WIDE RANGE OF ISSUES MOST PROMINENTLY THAT BRITISH AIRWAYS WOULD PAY VIRGIN 9 MILLION 134 MILLION IN COMPENSATION FOR LOST BUSINESS YET VIRGIN REFUSED TO AGREE TO KEEP SILENT IN THE FUTURE ABOUT BRITISH AIRWAYS' PAST ACTIVITIES VIRGIN ALLEGES THAT BRITISH AIRWAYS HAS RAIDED ITS COMPUTER TO GAIN INFORMATION ON ITS CUSTOMERS AND HAS USED A VARIETY OF TRICKS TO PERSUADE PASSENGERS TO SWITCH FROM VIRGIN BUT WHEN IT BECAME CLEAR FRIDAY AFTERNOON THAT BRITISH AIRWAYS WOULD STICK TO THE DEMAND FOR THE SOCALLED GAG CLAUSE VIRGIN CHAIRMAN RICHARD BRANSON HALTED THE TALKS WE WANT TO BE ABLE TO DEFEND OURSELVES IN THE FUTURE MR BRANSON SAID AND HE ADDED THE DESIRE TO GAG VIRGIN WAS A CLEAR SIGN OF POOR FAITH YOU HAVE TO ASK YOURSELF WHAT THEY'RE WORRIED ABOUT IN THE FUTURE MR BRANSON SAID YESTERDAY MR BRANSON SAID HE WOULD DROP HIS PLANNED LAWSUITS IF BRITISH AIRWAYS CHAIRMAN SIR COLIN MARSHALL AGREES TO STRIKE THE GAG CLAUSE IN THE NEXT 48 HOURS BRITISH AIRWAYS MANAGING DIRECTOR ROBERT AYLING WHO LED HIS AIRLINE'S NEGOTIATING TEAM EXPRESSED REGRET AT VIRGIN'S DECISION TO PULL OUT OF THE TALKS AND DISPUTED MR BRANSON'S INTERPRETATION OF THE CONFLICT WE HAVE NOT SOUGHT TO GAG VIRGIN MR AYLING SAID WE HAVE SIMPLY ASKED THEM TO AGREE NOT TO RAKE OVER THE EVENTS OF THE PAST AND TO JOIN US IN MAKING IT CLEAR THAT THOSE EVENTS ARE BEHIND US 9303220104 930322 INTERNATIONAL ITALY'S MINISTER OF AGRICULTURE RESIGNS POST CORRUPTION SCANDAL HITS FOURTH CABINET MEMBER IN BLOW TO GOVERNMENT BY MAUREEN KLINE AND CRAIG FORMAN STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN ITALY'S EVERWIDENING CORRUPTION INVESTIGATION HIT A FOURTH CABINET MINISTER AGRICULTURE MINISTER GIANNI FONTANA RESIGNED YESTERDAY BECOMING THE SIXTH MINISTER IN THE 25MEMBER CABINET TO RESIGN SINCE THE GOVERNMENT WAS FORMED LAST JUNE LATE YESTERDAY A REPLACEMENT HADN'T YET BEEN NAMED THE INVESTIGATION OF MR FONTANA IS THE LATEST OF SEVERAL SETBACKS TO THE GOVERNMENT OF PRIME MINISTER GUILIANO AMATO IN RECENT WEEKS AS THE 13MONTHOLD CORRUPTION SCANDAL KNOWN AS THE MANI PULITE OR CLEAN HANDS INVESTIGATION CONTINUES TO CLAIM VICTIMS WHILE THE LATEST RESIGNATION ISN'T LIKELY TO BRING DOWN THE GOVERNMENT IT DOES RAISE QUESTIONS OF WHETHER MR AMATO WHO HAS INDICATED HE MAY NOT STAY ON LONG AFTER AN APRIL 18 REFERENDUM ON ELECTORAL REFORM WILL LAST EVEN UNTIL THEN YESTERDAY CALLS FOR A NEW INSTITUTIONAL GOVERNMENT WERE RENEWED PRESIDENT OSCAR LUIGI SCALFARO ACCORDING TO STATE TELEVISION CANCELED HIS TRAVEL PLANS IN PREPARATION FOR ANOTHER DIFFICULT WEEK SEPARATELY IN A SIGN THAT NO AREA OF SOCIETY IS IMMUNE TO THE SCANDAL A PROMINENT CATHOLIC PRIEST IN ROME JOINED THE RANKS OF BUSINESS LEADERS AND POLITICIANS BEING INVESTIGATED DON LUIGI DI LIEGRO DIRECTOR OF THE ROME CHAPTER OF CATHOLIC CHARITY CARITAS WAS TOLD HE WAS UNDER INVESTIGATION FOR FRAUD IN CONNECTION WITH PROGRAMS FOR AFRICAN IMMIGRANTS ACCORDING TO ITALIAN NEWS REPORTS MR FONTANA THE CHRISTIAN DEMOCRATIC AGRICULTURE MINISTER RESIGNED AFTER BEING TOLD HE WAS BEING INVESTIGATED ON SUSPICIONS OF RECEIVING BRIBES AND BREAKING PARTY FINANCING LAWS AUTHORITIES SAID THE INVESTIGATION CONCERNED HIS PARTY ACTIVITIES IN VERONA AND NOT HIS ACTIVITIES AS A MINISTER UNLIKE MOST OTHER MINISTERS MR FONTANA ISN'T ALSO A MEMBER OF PARLIAMENT AND DOESN'T ENJOY PARLIAMENTARY IMMUNITY TO CRIMINAL INVESTIGATION HIS HOME IN VERONA AND A COUNTRY HOUSE WERE SEARCHED BY FINANCIAL POLICE IN HIS PRESENCE YESTERDAY THE AMATO GOVERNMENT NOW HAS SURVIVED FOUR CABINET RESIGNATIONS AND A SERIES OF CONFIDENCE VOTES IN PARLIAMENT BUT ITS SURVIVAL IS BELIEVED TO BE LARGELY DUE TO A LACK OF ALTERNATIVES MR AMATO HAS CALLED FOR ELECTORAL REFORM LEGISLATION FOLLOWED BY NEW PARLIAMENTARY ELECTIONS AS MORE AND MORE POLITICIANS ARE DISCREDITED IN THE SCANDAL 9303220103 930322 ENERGY AGENCY SET TO SEEK FUNDS FOR REACTOR R&D BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENERGY DEPARTMENT APPARENTLY REVERSING PRESIDENT CLINTON'S PLEDGE TO STOP SPENDING FOR NUCLEAR ENERGY RESEARCH AND DEVELOPMENT IS PLANNING TO SEEK 236 MILLION FOR ADVANCED REACTOR RESEARCH AND DEVELOPMENT A DEPARTMENT OFFICIAL DISCLOSED PLANS TO REINSTATE THE SPENDING AT A MEETING LAST WEEK WITH CONGRESSIONAL STAFF AIDES IT WASN'T CLEAR WHETHER THE WHITE HOUSE HAS YET SIGNED OFF ON THE DECISION IN AN ECONOMIC ADDRESS TO CONGRESS FEB 17 PRESIDENT CLINTON SAID WE'RE ELIMINATING PROGRAMS THAT ARE NO LONGER NEEDED SUCH AS NUCLEAR POWER RESEARCH AND DEVELOPMENT A WHITE HOUSE BUDGET DOCUMENT RELEASED THE SAME DAY MADE AN EXCEPTION FOR RESEARCH AND DEVELOPMENT FUNDS AIMED AT MAINTAINING THE OPERATION OF THE CURRENT GENERATION OF REACTORS AND THE LICENSING ACTIONS FOR REACTORS THAT HAVE COMMERCIAL INTEREST THESE FUNDS ESSENTIALLY 58 MILLION IN OPERATING SUBSIDIES DIDN'T INCLUDE ADVANCED REACTOR RESEARCH AND DEVELOPMENT BUT CONGRESSIONAL SUPPORTERS OF THE ARGONNE NATIONAL LABORATORY WHICH HAS FACILITIES IN ILLINOIS AND IDAHO PRESSED THE ENERGY DEPARTMENT TO RESTORE RESEARCH AND DEVELOPMENT FUNDS FOR ITS INTEGRAL FAST REACTOR PROJECT THE LAB IS DEVELOPING THE INTEGRAL FAST REACTOR OUT OF AN EXISTING REACTOR IN IDAHO IN A MEETING WITH CONGRESSIONAL STAFFERS THURSDAY EC BROLIN ACTING ASSISTANT SECRETARY FOR NUCLEAR ENERGY AT THE ENERGY DEPARTMENT ISSUED PRELIMINARY BUDGET FIGURES INDICATING THAT 236 MILLION WOULD BE ADDED TO THE BUDGET FOR ADVANCED REACTOR RESEARCH AND DEVELOPMENT THE LINE ITEM IS LISTED ON THE DOCUMENT AS ACTINIDE RECYCLE PROGRAM MOST OF THE FUNDS WOULD GO TO THE ARGONNE LAB'S INTEGRAL FAST REACTOR THE DECISION CAME AFTER SPIRITED LOBBYING FROM ILLINOIS'S CONGRESSIONAL DELEGATION WHICH ARGUED THAT SPENDING SHOULD CONTINUE FOR THE INTEGRAL FAST REACTOR BECAUSE THE TECHNOLOGY COULD BE USED TO CONSUME WASTE FROM NUCLEARWEAPONS LABS AND CIVILIAN NUCLEAR REACTORS AT A MARCH 17 MEETING WITH ILLINOIS SENS PAUL SIMON AND CAROL MOSELY BRAUN ENERGY SECRETARY HAZEL O'LEARY REPORTEDLY SAID SHE FELT CONTINUED SPENDING ON THE PROJECT HAD MERIT AN ENERGY DEPARTMENT SPOKESMAN DECLINED TO COMMENT ON THE MATTER DESPITE THE ENVIRONMENTAL JUSTIFICATION FOR CONTINUING THE SPENDING ENVIRONMENTAL GROUPS CONDEMNED THE APPARENT REVERSAL ON NUCLEAR ENERGY RESEARCH AND DEVELOPMENT WILLIAM MAGAVERN DIRECTOR OF THE CRITICALMASS ENERGY PROJECT FOR PUBLIC CITIZEN TERMED IT A BOGUS WAY OF SOLVING THE NUCLEAR WASTE PROBLEM 9303220101 930322 BROKERS TRADING US SECURITIES ALERTED TO SCAM BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE WAKE OF A SUSPECTED 1 BILLION TRADING FRAUD THE SECURITIES AND EXCHANGE COMMISSION IS WARNING BROKERAGE FIRMS TO BE WARY OF A MAN WHO IS USING MULTIPLE ALIASES AND QUESTIONABLE CORPORATE DOCUMENTS TO PLACE ORDERS FOR US TREASURY NOTES AND BONDS THE SEC HAS OBTAINED AN ORDER FROM A FEDERAL COURT IN BALTIMORE PROHIBITING DANIEL O TEYIBO OF ROCKVILLE MD FROM SELLING ANY SECURITIES OR MAKING UNTRUE STATEMENTS IN ANY BUSINESS TRANSACTIONS BUT THE SEC ALLEGES THAT AN EARLIER TEMPORARY COURT ORDER DIDN'T STOP MR TEYIBO AND THAT HE CONTINUED TO PLACE ORDERS TO BUY SECURITIES ON BEHALF OF SEVERAL COMPANIES HE PURPORTS TO REPRESENT WHEN THE SECURITIES WERE SOLD MR TEYIBO ALLEGEDLY STUCK THE BROKERAGE FIRMS WITH ANY LOSSES AND TRIED SUCCESSFULLY IN SOME INSTANCES TO COLLECT ANY GAINS SEC INVESTIGATORS SAID THE PRACTICE IS KNOWN AS FREE RIDING FOR ABOUT TWO YEARS THE SEC SAID MR TEYIBO PLACED ORDERS FOR PURCHASES OF ABOUT 1 BILLION IN TREASURY SECURITIES WITH ABOUT 30 FIRMS MR TEYIBO COLLECTED BETWEEN 175000 AND 200000 FROM GAINS ON HIS TRADES AND WALKED AWAY FROM ABOUT 600000 IN LOSSES ACCORDING TO THOMAS SJOBLOM ASSISTANT CHIEF LITIGATION COUNSEL AT THE SEC EFFORTS TO REACH MR TEYIBO WHO DEFENDED HIMSELF IN THE SEC CASE AND DENIES ANY WRONGDOING WERE UNSUCCESSFUL PHONE NUMBERS ON HIS VOLUMINOUS CORRESPONDENCE WITH BROKERAGE FIRMS AND THE SEC HAVE BEEN DISCONNECTED AND HIS HOME PHONE NUMBER ISN'T LISTED WITH DIRECTORY INFORMATION THE SEC ALLEGES THAT MR TEYIBO PLACED ORDERS ON BEHALF OF JFM INC AND OTHER COMPANIES DIRECTLY AT THE TRADING DESKS OF SALOMON BROTHERS INC KIDDER PEABODY & CO AND GOLDMAN SACHS & CO AMONG OTHERS WHEN ASKED MR TEYIBO ALLEGEDLY PROVIDED FALSE FINANCIAL STATEMENTS AND CORPORATE RESOLUTIONS FOR JFM IN TRANSACTIONS WITH MERRILL LYNCH & CO PARIBAS CORP AND PRUDENTIAL INSURANCE CO OF AMERICA'S PRUDENTIAL SECURITIES INC THE SEC ALLEGES THAT MR TEYIBO USED ALTERED PHOTOCOPIES OF AN ACTUAL FINANCIAL STATEMENT FOR SECURITY PACIFIC CO AND CLAIMED THAT THE FIGURES WERE THOSE OF JFM'S PARENT COMPANY FIRST AFRICAN TRUST CORP THE ALIASES ALLEGEDLY USED BY MR TEYIBO INCLUDE DANIEL O TEBO OLATUNDUN OLAJIDE RICHARD GANT AND JACOB ASARARE THE SEC SAID MR TEYIBO USED THE NAME OGBO ASADIGBO EARLIER THIS MONTH IN AN ATTEMPTED TRANSACTION MR TEYIBO'S PURPORTED COMPANIES INCLUDE STEIN & STEIN SECURITIES RK GANT & ASSOCIATES UNITED TRADING & INVESTMENT CORP AND ASADIGBO EXPORT/IMPORT CO THE SEC SAID IT IDENTIFIED ONE COMPANY NAME JOLADE FOREIGN METRIC AS THAT OF AN AUTOMOBILE REPAIR SHOP OWNED BY MR TEYIBO'S BROTHER ONE OF THE PROBLEMS HERE IS THAT BY THE NATURE OF THE GOVERNMENT SECURITIES MARKETS TRADING IS DONE LOOSELY OVER THE PHONE SAID SEC INVESTIGATOR ROBERT SKRZYPCZAK IF A SALESPERSON GETS A CALL FROM A PARTY THAT THEY'RE NOT FAMILIAR WITH IT MAY BE ADVISABLE TO WAIT A LITTLE BIT AND CHECK ON THIS PERSON THE FIRMS HAVE INFORMATION AVAILABLE TO THEM THAT COULD STOP A FRAUDULENT TRANSACTION REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE TERMED THE TEYIBO MATTER DEEPLY TROUBLING IN TERMS OF WHAT IT SAYS ABOUT WALL STREET BUSINESS PRACTICES HE ASKED THE SEC FOR A FULL REPORT ON HOW GOVERNMENT SECURITIES BROKERS AND DEALERS VERIFY THE IDENTITY AND CREDITWORTHINESS OF THOSE WITH WHOM THEY TRADE AND WHETHER ANY LEGAL CHANGES ARE NEEDED 9303220100 930322 SWISS BOND DEALERS ARE GOING OFFSHORE TO AVOID NEW TAX BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH SMALLER SWISSBASED DEALERS IN FOREIGN BONDS HAVE MOVED THEIR BUSINESSES OFFSHORE IN AN IRONIC REACTION TO A TAX REFORM DESIGNED TO MAKE SWITZERLAND A MORE ATTRACTIVE FINANCIAL CENTER SECONDARYMARKET TRADERS IN THESE BONDS SAID THEY ARE SETTING UP COMPANIES IN IRELAND AND THE CHANNEL ISLANDS TO BYPASS A STAMP DUTY LEVIED UNDER LEGISLATION THAT GOES INTO EFFECT APRIL 1 TRANSACTIONS CARRIED OUT THROUGH A FOREIGN ENTITY ARE EXEMPT VALCOURT SA INFORMED CLIENTS THIS MONTH THAT IT SET UP VALCOURT GUERNSEY LTD IN THE CHANNEL ISLANDS TO TRANSACT BUSINESS PREVIOUSLY EXECUTED BY THE COMPANY IN GENEVA THE LOCAL COMPANY WILL CONTINUE TO OFFER AN ADVISORY SERVICE TO CUSTOMERS AND TO SETTLE THE TRANSACTIONS VALCOURT SAID VISCOUNT ALEX BRIDPORT OF BRIDPORT & CIE SAID HIS CONCERN WILL OPEN A NEW SEPARATE COMPANY IN JERSEY IN THE CHANNEL ISLANDS IN APRIL IF WE DIDN'T DO THIS WE'D BLOW OUR TRADES HE EXCLAIMED HE CALLED THE SITUATION IDIOTIC GERALD RIMER OF INDEX SECURITIES SA OPTED FOR OPERATIONS IN IRELAND HE EXPRESSED CONCERN OVER THE COST OF THE NEW LEGISLATION IN TERMS OF JOBS THIS PROBLEM WITH THE LAW MEANS WE ARE NOT GOING TO BE CREATING JOBS IN SWITZERLAND AS WE PLANNED HE SAID DEALERS COMPLAINED THE NEW LEGISLATION FAVORS BIG SWISS BANKS THAT ALREADY HAVE FOREIGN SUBSIDIARIES THROUGH WHICH THEY CAN TRANSACT BUSINESS THE DIFFICULTIES FACED BY SMALLER BOND DEALERS SEEMS TO HAVE BEEN AN OVERSIGHT THEY SUGGESTED FOR EACH OF THESE SMALLER DEALERS THE NEW OFFSHORE OPERATIONS WERE THEIR FIRST FOREIGN COMPANIES THE NEW STAMP DUTY DOES NOT TAX A SWISS SECURITIES DEALER ACTING AS AN INTERMEDIARY IN FOREIGN BONDS BETWEEN TWO FOREIGN PARTIES BUT IF THERE ARE TWO SWISS PARTIES A TAX IS CHARGED FOR EXAMPLE IF A SWISSBASED BROKER BUYS US BONDS FROM A LONDON BANK AND SELLS TO A SWISS BANK WHICH RESELLS TO A FOREIGN CLIENT A STAMP DUTY OF 015 IS PAID IF A FOREIGNBASED BROKER SELLS DIRECT TO THE SWISS BANK WHO RESELLS TO A FOREIGN CLIENT NO STAMP DUTY IS DUE PATRICK WILD OF ACCOUNTANTING FIRM ATAG ERNST & YOUNG IN ZURICH SAID HE IS ADVISING SMALLER BOND DEALERS WITHOUT FOREIGN OUTLETS TO SET THEM UP TO AVOID THE TAX ANTHONY CONWAY OF VALCOURT SAID THAT WHEN SWISS VOTED LAST YEAR IN A REFERENDUM TO CHANGE STAMP DUTY LEGISLATION THIS WAS NOT IN THEIR MINDS THE REVISION WAS MEANT TO BRING BUSINESS BACK TO SWITZERLAND MR WILD NOTED HOWEVER THAT THE TOTAL PACKAGE OF STAMP DUTY REVISIONS SET FOR APRIL 1 DOES INCLUDE MAJOR REFORMS THAT WOULD IMPROVE SWITZERLAND'S STANDING AS A FINANCIAL CENTER HE SAID THE FISCAL BARRIERS WHICH IN RECENT YEARS HAVE LED TO A MIGRATION OF BUSINESS TO LONDON AND LUXEMBOURG ARE CONSIDERABLY REDUCED BY THIS LAW IMPROVEMENTS INCLUDE ABOLITION OF A 09 ISSUANCE TAX ON INVESTMENTFUND CERTIFICATES THIS IS A MASSIVE STEP IN THE RIGHT DIRECTION SAID MR WILD HE POINTED OUT THAT BECAUSE OF THIS TAX SWISS BANKS WERE DOING VIRTUALLY ALL OF THEIR MUTUAL FUND BUSINESS IN LUXEMBOURG OTHER CHANGES IN THE LAW ENTAIL TAX RELIEF FOR MONEYMARKET TRANSACTIONS ISSUING FOREIGN BONDS AND NEW CAPITAL PROFESSIONAL SECURITIES DEALERS ARE EXEMPT FROM A TRANSFER TAX ON THEIR TRADING POSITIONS WE HAVE A SITUATION WHERE OFFSHORE BUSINESS IS GOING TO COME ONSHORE AND ONSHORE BUSINESS IS GOING TO GO OFFSHORE SAID VISCOUNT BRIDPORT SWISS FINANCE DEPARTMENT OFFICIAL CONRAD STOCKAR SAID A CHANGE IN THE CONTROVERSIAL TAX IS NOT UNDER DISCUSSION 9303220099 930322 LETTERS TO THE EDITOR THE TRAVEL AGENT ALWAYS A BARGAIN YOUR FEB 23 ARTICLE TRAVEL AGENTS' FARE SHARE SOARS AS AIRLINES LOG LOSSES SAYS THAT TRAVEL AGENT COMMISSIONS ROSE 9 IN 1992 PERHAPS BUT YOU OVERLOOK ENTIRELY THE FACT THAT 1991 WAS ONE OF THE WORST YEARS IN THE INDUSTRY'S HISTORY DUE TO THE SIMULTANEOUS IMPACT OF THE GULF WAR AND THE RECESSION GROSS COMMISSIONS ACTUALLY DECLINED ALMOST 100 MILLION FROM 1990 TO 1991 YOU SAY THAT COMMISSION RATES ARE RISING THE ONLY MARKETS IN WHICH MEANINGFUL INCREASES IN COMMISSION RATES HAVE OCCURRED AFTER THE INITIAL POSTDEREGULATION ADJUSTMENTS ARE INTERNATIONAL MARKETS AMONG THE MANY FACTORS INFLUENCING INTERNATIONAL COMMISSIONS ARE THE GREATER VALUEADDED SERVICES THAT TRAVEL AGENTS PROVIDE TO TRAVELERS YOU ALSO FAILED TO CONSIDER THE IMPACT OF INFLATION IN EVALUATING WHETHER COMMISSION PAYMENTS ARE REASONABLE FOR THE EXTENSIVE ARRAY OF SERVICES THAT TRAVEL AGENTS PROVIDE THE ULTIMATE AND CONTROLLING POINT IS THAT COMMISSIONS ARE SET BY THE AIRLINES UNDER COMPETITIVE CONDITIONS THAT REWARD PERFORMANCE EXACTLY AS WAS SUPPOSED TO HAPPEN WHEN THE INDUSTRY WAS FULLY DEREGULATED YOU IMPLY THAT TRAVEL AGENCIES ARE GROWING TOO RAPIDLY AND THAT SOMETHING IS WRONG WITH GROWTH IN THIS INDUSTRY TRAVEL AGENCY GROWTH OVER THE PRIOR YEARS HAS BEEN FUELED BY ONE THING CONSUMER DEMAND FOR SERVICES THAT TRAVEL AGENCIES PROVIDE THAT IS WHY TRAVEL AGENCIES TODAY SELL ABOUT 80 OF ALL DOMESTIC AIRLINE TRAVEL THAT IS WHY THE HOTEL INDUSTRY IS TURNING TO TRAVEL AGENCIES TO MARKET AND SELL ITS VACANT ROOMS MOST MAJOR HOTEL FIRMS DO NOT SEE TRAVEL AGENCIES AS A NEGATIVE COST THEY ARE VIEWED AS THE MAJOR SOLUTION TO REDUCING THE GAP BETWEEN AVAILABLE ROOMS AND RESERVED ROOMS OVERRIDES ARE NOTHING MORE THAN EXTRA OR BONUS COMMISSIONS AGENTS ARE PAID FOR PRODUCTIVITY I CANNOT IMAGINE THAT THERE ARE VERY MANY COMPETITIVE INDUSTRIES IN THIS COUNTRY IN WHICH PRODUCTIVITY IS NOT COMPENSATED DO YOU SERIOUSLY BELIEVE THAT TRAVEL AGENTS COULD CAPTURE AND RETAIN AN 80 MARKET SHARE BY ROUTINELY DEFEATING THE WISHES OF THEIR CLIENTS CAN YOU SERIOUSLY MAINTAIN THAT THE AIRLINES WOULD CONTINUE TO PERMIT TRAVEL AGENTS TO SELL 80 OF THEIR DOMESTIC BUSINESS IF THERE WERE A CHEAPER AND MORE EFFECTIVE WAY THE REAL ISSUES AFFLICTING THE ECONOMIC WELFARE OF THE AIRLINE INDUSTRY INCLUDE THE SERIOUS OVERCAPACITY RELATIVE TO DEMAND AND THE PRICING PRACTICES THAT OFTEN RESULT THEY ALSO INCLUDE THE FACT THAT AIRLINE FARES ARE ONE OF THE MOST HEAVILY TAXED PRODUCTS IN THIS COUNTRY EXCESS TAXATION INCREASES PRICES AND REDUCES DEMAND TRAVEL AGENTS ARE ALL ABOUT INCREASING THE DEMAND FOR TRAVEL BY MAKING IT EASIER TO BUY TRAVEL THERE IS NO CREDIBLE EVIDENCE THAT THE EXISTENCE OF THE TRAVEL AGENCY DISTRIBUTION SYSTEM HAS HARMED THE TRAVELING PUBLIC OR THE AIRLINE INDUSTRY ON THE CONTRARY WITHOUT THE TRAVEL AGENCY DISTRIBUTION SYSTEM SHARED BY ALL IMPORTANT AIRLINES FREE ENTRY THE HALLMARK OF DEREGULATION WOULD BE VIRTUALLY IMPOSSIBLE THE TRAVEL AGENCY DELIVERY SYSTEM FOR AIRLINE TICKETS IS THE MOST COSTEFFICIENT AVAILABLE FOR AIRLINES TO DUPLICATE IT ON A DIRECT BASIS WOULD ADD COSTS BEYOND THE COMMISSIONS PAID TO AGENCIES TRAVEL AGENTS SPEND MORE TIME TODAY THAN THEY DID PRIOR TO DEREGULATION FINDING THE BEST PRICES AND VALUE FOR THEIR CLIENTS THIS LOWERS COSTS FOR THE CLIENT AT THE SAME TIME AS IT LOWERS COMMISSION INCOME FOR THE AGENCY AN ANOMALY PECULIAR TO THIS INDUSTRY AN AIRLINE CANNOT AND WILL NOT PERFORM THIS SERVICE OVERRIDE AGREEMENTS AND HIGHER COMMISSIONS FOR MEGAAGENCIES AND CONSOLIDATORS USUALLY ARE REFLECTED IN REVENUESHARING PROGRAMS OR DISCOUNTS TO THE CONSUMER RATHER THAN AN INDICATION OF INCREASED COST THEY ARE MORE OFTEN THAN NOT ANOTHER WAY TO REDUCE COST TO THE CONSUMER THE HOTEL INDUSTRY REALIZING AT LONG LAST THE VALUE OF THE TRAVEL AGENCY DISTRIBUTION SYSTEM AS ECONOMICAL AND EFFICIENT IS COMING AROUND TO GUARANTEEING COMMISSIONS TO TRAVEL AGENTS BECAUSE IT'S TO THEIR ADVANTAGE TO DO SO BY INCREASING OCCUPANCY IN HOTELS EMPLOYING THE COMMISSION SYSTEM IT WILL REDUCE OVERALL COSTS NOT INCREASE THEM THE IMPLICATION THAT SOMEHOW TRAVEL AGENTS THROUGH BOYCOTTS WERE ABLE TO BRING ABOUT THE DEMISE OF PEOPLEEXPRESS IS SIMPLY WITHOUT MERIT TRAVEL AGENTS JUST AREN'T THAT ORGANIZED PEOPLEEXPRESS FAILED PRIMARILY BECAUSE ITS MANAGEMENT FAILED TO RECOGNIZE THAT PRICE ALONE IS NOT ENOUGH TO INFLUENCE THE TRAVELING HABITS OF THE BUSINESS COMMUNITY BUSINESS TRAVELERS ARE A LOT MORE SAVVY THAN YOUR ARTICLE WOULD SEEM TO INDICATE TRAVEL AGENTS CANNOT STEER THEM AWAY FROM WHAT THEY PERCEIVE AS A BARGAIN YOU NEED ONLY TO LOOK AT THE SUCCESS OF SOUTHWEST AIRLINES AS AN EXAMPLE 9303220098 930322 HIRSCHFELD'S CONTROL OF POST GETS A BOOST FROM JUDGE NEW YORK AP A BANKRUPTCY COURT JUDGE WORKED OUT A FRAGILE TRUCE IN THE MUTINY AT THE NEW YORK POST REAFFIRMING ABE HIRSCHFELD HAS FIRST CALL AT OWNERSHIP OF THE TABLOID AND REINSTATING THE EDITOR WHOM MR HIRSCHFELD HAD FIRED FEDERAL BANKRUPTCY COURT JUDGE FRANCIS CONRAD IN REFUSING TO CONSIDER ANY NEW OWNERSHIP OFFERS IGNORED A PLEA PUBLISHED ON FRIDAY'S FRONT PAGE THE COURT'S ACTION MEANS MR HIRSCHFELD CONTROLS THE PAPER UNTIL HE COMPLETES HIS PURCHASE OR BACKS OUT OF THE DEAL AS FAR AS I'M CONCERNED IT'S A DONE DEAL JUDGE CONRAD SAID MY HEART SANK WHEN I HEARD THAT SAID PETE HAMILL WHO WAS REINSTATED AS EDITOR IN CHIEF AT LEAST UNTIL APRIL 2 JUDGE CONRAD'S ORDER REINSTATING HAMILL COVERS THE PERIOD THE JUDGE HE WILL BE ASSIGNED TO THE CASE WHILE THE ORIGINAL JUDGE IS ON VACATION MR HIRSCHFELD HAD ANNOUNCED A PARTNERSHIP WITH WILBERT TATUM OWNER OF THE AMSTERDAM NEWS A BLACKORIENTED WEEKLY NELSON WARFIELD A SPOKESMAN FOR COSMETICS TYCOON RONALD LAUDER SAID WE'RE ASSESSING THE IMPACT OF THE COURT'S DECISION AN INVESTMENT GROUP LED BY MR LAUDER ALSO HAD TALKED ABOUT BUYING THE POST THE JUDGE SAID SUITOR STEVEN HOFFENBERG WHO ONCE HAD CONTROL OF THE PAPER MAY NOT INTERFERE WITH THE SALE 9303220097 930322 GROUP CREATES SYSTEM TO HELP LOCATE PEOPLE WITH ALZHEIMER'S WHO WANDER BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A RESEARCH GROUP THAT SEEKS TO AID VICTIMS OF ALZHEIMER'S DISEASE IS CREATING A NATIONWIDE SYSTEM TO HELP LOCATE AND RETURN DISORIENTED PEOPLE TO THEIR FAMILIES MANY OF THE FOUR MILLION PEOPLE IN THE US WITH ALZHEIMER'S DISEASE OFTEN BECOME CONFUSED AND DISORIENTED SAYS DIANE YOUNG WHO HEADS A COMMITTEE COORDINATING THE PROGRAM FOR THE ALZHEIMER'S ASSOCIATION IN CHICAGO THEY SET OFF TO FIND SOMETHING THAT'S FAMILIAR AND REASSURING TO THEM SUCH AS THEIR CHILDHOOD HOME ONE SURVEY FOUND 70 OF CAREGIVERS FOR PEOPLE WITH ALZHEIMER'S IDENTIFIED WANDERING AS A PROBLEM THOSE AFFLICTED WITH ALZHEIMER'S OFTEN EXPERIENCE CONFUSION MEMORY LOSS AND IMPAIRED JUDGMENT SOME HAVE DRIVEN THOUSANDS OF MILES BEFORE BEING FOUND SOME WHO WANDER OFF MAY NOT BE ABLE TO SPEAK AND THUS CAN'T ASK FOR HELP MANY OF THOSE WHO ARE AFFLICTED ARE EITHER UNAWARE THEY HAVE THE DISEASE OR DENY IT IT'S ALARMING BEHAVIOR AND IT'S ALSO LIFE THREATENING MRS YOUNG SAYS WE'VE HAD PATIENTS WHO HAVE WANDERED AWAY WHOSE BODIES WERE FOUND SEVERAL YEARS LATER HOWEVER ALZHEIMER'S GROUPS IN SEVERAL LOCALITIES HAVE HAD GOOD RESULTS WITH A SAFE RETURN PROGRAM DESIGNED TO IDENTIFY PATIENTS AND HELP RETURN THEM IN LOUISVILLE KY FOR INSTANCE ALZHEIMER'S PATIENTS CAN WEAR A BRACELET ALERTING STRANGERS TO THEIR ILLNESS AND GIVING A TELEPHONE NUMBER TO CALL SO FAR ABOUT 50 OF THE 220 ALZHEIMER'S ASSOCIATION CHAPTERS HAVE STARTED SOME VERSION OF THE SAFE RETURN PROGRAM ABOUT 10000 PATIENTS SO FAR HAVE BEEN REGISTERED IN THE LOCAL PROGRAMS FOR A 25 FEE THE PROGRAM PROVIDES ALZHEIMER'S PATIENTS WITH AN IDENTITY BRACELET OR NECKLACE GIVING THEIR FIRST NAME ONLY AND AN IDENTIFICATION NUMBER A WALLET CARD AND CLOTHING LABELS AND ENROLLS THEM IN A NATIONAL DATABASE WHEN A PATIENT WANDERS AWAY THE FAMILY CAN CALL A TOLLFREE NUMBER AND THE OPERATOR WILL SEND OUT A MISSING PERSON ALERT TO A COMPUTER NETWORK OF 17000 LAW ENFORCEMENT AGENCIES NATIONWIDE AT THE SAME TIME WHEN A MISSING PERSON IS FOUND THE BRACELET CARRIES A TOLLFREE NUMBER TO CALL SO THE FAMILY CAN BE REUNITED THERE WILL BE TWO BRACELETS EACH IDENTIFYING THE PERSON AS MEMORYIMPAIRED BECAUSE MANY PATIENTS IN THE EARLY STAGES OF THE DISEASE DON'T WANT TO ACKNOWLEDGE THE CONDITION ONE BRACELET WILL SAY SAFE RETURN WHILE THE OTHER WILL SAY ALZHEIMER'S ASSOCIATION SAFE RETURN THE GROUP ALSO WILL BE GIVING POLICE DEPARTMENTS AND HOSPITAL WORKERS ADDITIONAL INFORMATION ABOUT THE PROGRAM AND THE SYMPTOMS OF WANDERING OFTEN A PERSON WITH ALZHEIMER'S CAN BE MISTAKEN FOR SOMEONE WHO'S DRUNK OR ON DRUGS AND CAN BE PUT IN THE HOSPITAL WITHOUT THE FAMILY'S KNOWLEDGE MRS YOUNG SAYS THE CENTRALIZED INFORMATION SYSTEM IS ONE THING THAT NEEDS TO BE DONE FOR ALZHEIMER'S PATIENTS SAYS EVANGELINE PIPER WHOSE FATHER DIED AFTER HE WANDERED AWAY FROM THEIR HOME WHEN THIS HAPPENS TO YOU YOU START TO PANIC NO ONE KNOWS WHAT TO DO MS PIPER SAYS SHE HAD TO PHONE AND VISIT ALL THE AREA HOSPITALS HERSELF WHEN HER FATHER DISAPPEARED THE FASTER YOU HAVE THE INFORMATION THE FASTER YOU'RE GOING TO FIND THEM SHE SAYS THE ALZHEIMER'S ASSOCIATION IS SENDING OUT BROCHURES TO ITS 220 LOCAL CHAPTERS WITH INFORMATION ON THE PROGRAM FOR MORE INFORMATION CALL 800 2723900 9303220095 930322 LAW LEGAL BEAT GUN SHOPS RULED LIABLE FOR SALES TO MINORS THROUGH STRAW' BUYERS BY MILO GEYELIN AND JONATHAN M MOSES STAFF REPORTERS OF THE WALL STREET JOURNAL GUN DEALERS IN CALIFORNIA CAN BE SUED FOR INJURIES THAT RESULT FROM THE SALE OF FIREARMS TO ADULTS WHO WITH THE DEALERS' KNOWLEDGE PASS THE WEAPONS ON TO MINORS A STATE APPEALS COURT RULED THE DECISION SIMILAR TO ONE BY A VIRGINIA JURY EARLY LAST YEAR LAYS OUT A DUTY OF CARE ON THE PART OF GUN DEALERS TO MAKE SURE THEY DON'T SELL FIREARMS TO INDIVIDUALS WHO ARE BARRED BY FEDERAL LAW FROM BUYING THEM SUCH AS MINORS CONVICTED FELONS FUGITIVES DRUG USERS AND THE MENTALLY ILL BOTH CASES REFLECT A GROWING NATIONWIDE EFFORT BY GUN CONTROL ADVOCATES TO SEEK COURT RULINGS BROADENING LIABILITY FOR SELLING TO HIGHRISK BUYERS SAYS JUDY BONDERMAN STAFF ATTORNEY AT THE WASHINGTONBASED CENTER TO PREVENT HANDGUN VIOLENCE A GUN CONTROL ADVOCACY GROUP SO FAR SUCH RULINGS HAVE BEEN FEW AND FAR BETWEEN BUT THE CALIFORNIA APPELLATE DECISION IS SIGNIFICANT BECAUSE IT'S THE FIRST IN THAT STATE TO DECLARE GUN DEALERS LIABLE FOR THE SALE OF GUNS TO MINORS THROUGH STRAW PURCHASERS AND TO SKETCH OUT HOW TO DETERMINE WHETHER DEALERS EXERCISED SUFFICIENT CARE THE CASE INVOLVED A 9MM HANDGUN SOLD TO THE GRANDMOTHER OF A 19YEAROLD BOY IN ARROYO GRANDE CALIF THE YOUTH HAD BEEN TURNED DOWN AT A DEALERSHIP IN DECEMBER 1989 BECAUSE HE WAS NOT 21 YEARS OLD THE FEDERAL MINIMUM AGE FOR BUYING A HANDGUN ACCORDING TO THE COURT'S OPINION THE YOUTH ASKED THE DEALER IF HIS GRANDMOTHER COULD BUY THE GUN TOLD THAT SHE COULD IF SHE WAS LEGALLY QUALIFIED AND DIDN'T SELL THE WEAPON THE YOUTH RETURNED WITH HER SEVERAL DAYS LATER TO MAKE THE PURCHASE NOT LONG AFTERWARD THE YOUTH FIRED THE GUN WHILE SHOWING IT OFF AT A PARTY AND KILLED A FRIEND WHOSE FAMILY SUED THE DEALER ALLEGING WRONGFUL DEATH IN THE OTHER CASE INVOLVING THE SAME ISSUE A JURY IN VIRGINIA BEACH VA IN JANUARY 1992 AWARDED 105000 IN DAMAGES AGAINST A GUN STORE THAT SOLD A MAC11 SEMIAUTOMATIC ASSAULT PISTOL TO A 15YEAROLD THROUGH HIS 37YEAROLD COUSIN ACCORDING TO MS BONDERMAN AFTER THE TWO WALKED INTO THE GUN STORE TOGETHER THE YOUNGER COUSIN HANDED OVER 281 IN CASH TO HIS COUSIN WALKED TO THE DISPLAY CASES AND POINTING TO THE MAC11 TOLD THE CLERK THAT'S THE ONE I WANT THE OLDER COUSIN THEN MADE THE PURCHASE AND FILLED OUT THE REQUISITE FORMS THE VERDICT IN THAT CASE WAS NOT APPEALED ACCORDING TO MS BONDERMAN BUT IN THE CALIFORNIA CASE PLAINTIFFS DID APPEAL A TRIAL JUDGE'S DECISION TO DISMISS THE SUIT AND ON APPEAL THE SECOND APPELLATE DISTRICT COURT IN VENTURA REVERSED THE TRIAL JUDGE AND SENT IT BACK FOR TRIAL IN DETERMINING WHETHER THE STORE WAS LIABLE THE APPEALS COURT RULED THAT JURORS SHOULD TAKE INTO ACCOUNT WHETHER THERE WAS FORESEEABILITY OF HARM AT THE TIME OF THE SALE AND HOW CLOSE THE CONNECTION WAS BETWEEN THE TRANSACTION AND THE ALLEGED HARM AMONG OTHER FACTORS IN SIMILAR CASES INVOLVING THE SALE OF FIREARMS TO THE MENTALLY INCOMPETENT COURTS HAVE BEEN SPLIT APPEALS COURTS IN ARIZONA AND INDIANA HAVE FOUND GUN STORES LIABLE FOR SELLING FIREARMS TO CUSTOMERS WHO WERE LATER FOUND TO BE UNDERAGE OR MENTALLY ILL BUT STATE APPEAL COURTS ELSEWHERE HAVE BEEN MORE LENIENT IN TEXAS FOR EXAMPLE GUN DEALERS MUST KNOW THAT A PURCHASER IS BARRED BY STATE OR FEDERAL LAW FROM BUYING A GUN BEFORE THEY CAN BE FOUND LIABLE FOR HAVING MADE THE SALE A FEDERAL JUDGE DISMISSED A LIBEL SUIT INVOLVING ALLEGATIONS THAT THE REV MARTIN LUTHER KING JR SPENT PART OF HIS LAST NIGHT WITH A WOMAN WHO WASN'T HIS WIFE THE STATEMENT ABOUT HOW MR KING SPENT THAT NIGHT APPEARED IN THE AUTOBIOGRAPHY OF THE LATE REV RALPH DAVID ABERNATHY TITLED AND THE WALLS CAME TUMBLING DOWN ADJUA ABI NAANTAANBUU A HUMANRIGHTS ACTIVIST IN MEMPHIS TENN SUED HARPER & ROW PUBLISHERS INC AND THE ESTATE OF MR ABERNATHY ON THE GROUNDS THAT THE BOOK FALSELY SUGGESTED THAT SHE WAS THE WOMAN INVOLVED MS NAANTAANBUU ISN'T IDENTIFIED IN THE BOOK BY NAME PHYSICAL DESCRIPTION OR OCCUPATION BUT SHE SAID SHE WAS DEFAMED BY A PASSAGE IN WHICH MR ABERNATHY SUGGESTED THAT DR KING HAD SLEPT WITH A WOMAN FRIEND AFTER A DINNER PARTY ON APRIL 3 1968 MS NAANTAANBUU SAYS MANY PEOPLE ASSUMED THAT SHE WAS THE WOMAN BECAUSE SHE THREW THE PARTY US DISTRICT JUDGE CHARLES H TENNEY IN DISMISSING THE SUIT FOUND THAT DR KING'S LAST NIGHT AND HIS PRIVATE LIFE IN GENERAL WERE MATTERS OF PUBLIC INTEREST LIBEL PRINCIPLES PARTICULARLY SAFEGUARD FREE SPEECH REGARDING SUCH MATTERS AND THUS HE RULED THE PLAINTIFF HAD TO PROVE THAT THE AUTHOR WAS GROSSLY NEGLIGENT IN PRINTING ANY FALSEHOODS ON THE SUBJECT UNDER A GROSSNEGLIGENCE STANDARD SOMEONE SUING FOR LIBEL WOULD HAVE TO SHOW THAT THE BOOK VIOLATED JOURNALISTIC AND OTHER PROFESSIONAL PUBLISHING INDUSTRY STANDARDS WHICH JUDGE TENNEY SAID COULDN'T BE DEMONSTRATED IN THIS CASE UNDER LIBEL LAW IT'S EASIER FOR A PRIVATE INDIVIDUAL TO WIN A LAWSUIT THAN A PUBLIC FIGURE WHO HAS TO SHOW THAT A FALSE AND DEFAMATORY STATEMENT WAS MADE WITH RECKLESS DISREGARD FOR THE TRUTH JUDGE TENNEY FOUND THAT MS NAANTAANBUU ISN'T A PUBLIC FIGURE BUT BECAUSE OF THE CIRCUMSTANCES HAD TO MEET AN INTERMEDIATE STANDARD GROSS NEGLIGENCE NONETHELESS THE JUDGE'S RULING IS ONE OF ONLY A FEW TO REQUIRE A PRIVATE INDIVIDUAL TO MEET AN ENHANCED LIBEL STANDARD BECAUSE HE OR SHE HAS BEEN INVOLVED INVOLUNTARILY IN A PUBLIC EVENT SAYS ROSLYN MAZER A WASHINGTON ATTORNEY AT DICKSTEIN SHAPIRO & MORIN WHO SPECIALIZES IN LIBEL ISSUES GAIL BOYD AN ATTORNEY AT BOYD & CAVE IN BROOKLYN NY WHO REPRESENTED MS NAANTAANBUU SAID SHE THOUGHT THE RULING MAKES IT TOO DIFFICULT FOR A NONPUBLIC FIGURE TO WIN A LIBEL LAWSUIT SHE SAID SHE WILL CONSIDER AN APPEAL TWO MORE MEMBERS OF AN ALLEGED RING OF COMPUTER HACKERS WHO IDENTIFIED THEMSELVES AS MOD FOR MASTERS OF DECEPTION OR MASTERS OF DISASTER PLEADED GUILTY TO CONSPIRACY IN FEDERAL COURT IN NEW YORK IN ADDITION TO CONSPIRACY PAUL STIRA AND ELIAS LADOPOLOUS BOTH 23 YEARS OLD HAD BEEN CHARGED LAST JULY WITH COMPUTER TAMPERING COMPUTER FRAUD WIRE FRAUD ILLEGAL WIRETAPPING AND BREAKING FEDERAL PRIVACY LAWS THE CHARGES FOLLOWED A PRECEDENTSETTING INVESTIGATION IN WHICH GOVERNMENT AGENTS TAPPED COMPUTER TRANSMISSIONS SENT OVER TELEPHONE LINES THE ADDITIONAL CHARGES WERE DROPPED IN EXCHANGE FOR THE CONSPIRACY PLEAS SENTENCING IS SET FOR MAY 24 PREVIOUSLY TWO OTHER MEMBERS OF THE RING WHICH ALLEGEDLY STOLE PHONE SERVICES AND INFORMATION ON HOW TO GET REPORTS FROM CREDIT SERVICES PLEADED GUILTY TO CONSPIRACY ONE MORE ALLEGED MEMBER MARK ABENE KNOWN IN THE COMPUTER WORLD BY HIS CODE NAME PHIBER OPTIK HAS DENIED THE CHARGES AND IS SCHEDULED TO GO TO TRIAL IN MAY A FEDERAL APPEALS COURT RULED THAT A JORDANIAN BANK BECAME SUBJECT TO THE LAW OF NEW YORK STATE WHEN IT ASSURED A CUSTOMER THAT IT WOULD DEPOSIT CERTAIN FUNDS IN A NEW YORK BANK ACCOUNT THE RULING BY THE SECOND US CIRCUIT COURT OF APPEALS NEW YORK SHOULD MAKE IT EASIER TO SUBJECT FOREIGN FINANCIAL INSTITUTIONS TO US LAW IN INTERNATIONAL BUSINESS DISPUTES ALTHOUGH THE RULING ONLY CONCERNS NEW YORK LAW IT IS EXPECTED TO HAVE A BROAD IMPACT BECAUSE SO MUCH INTERNATIONAL FINANCING IS DONE THROUGH NEW YORK CITY IN THIS CASE PETRA BANK PROMISED THAT CERTAIN NOTES IT WAS BACKING WOULD BE PAID TO A BANK ACCOUNT IN MANHATTAN CHOOSING NEW YORK AS THE PLACE OF PAYMENT WAS NOT INCIDENTAL THE APPEALS COURT RULED BY GUARANTEEING PAYMENT IN A WORLD FINANCIAL CAPITAL THE NOTES APPEARED MORE ATTRACTIVE TO BUYERS THE COURT WROTE BECAUSE THEY APPEARED MORE BANKABLE AN ATTORNEY FOR PETRA BANK DIDN'T RETURN A PHONE CALL SEEKING COMMENT WHO'S NEWS INTERNATIONALTAX SPECIALIST ALAN W GRANWELL JOINED KAYE SCHOLER FIERMAN HAYS & HANDLER AS A PARTNER IN THE FIRM'S WASHINGTON OFFICE MR GRANWELL HAD BEEN A PARTNER AT THE WASHINGTON OFFICE OF CADWALADER WICKERSHAM & TAFT OLIN WETHINGTON WHO WAS ASSISTANT TREASURY SECRETARY FOR INTERNATIONAL AFFAIRS IN THE BUSH ADMINISTRATION REJOINED STEPTOE & JOHNSON AS A PARTNER IN ITS WASHINGTON OFFICE 9303220094 930322 LAW MEDIATION FIRMS ALTER LEGAL LANDSCAPE BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL IMAGINE A LEGAL SYSTEM IN WHICH COMPANIES COULD PUT THEIR DISPUTES BEFORE JUDGES OF THEIR CHOICE GET SPEEDY DECISIONS AVOID THE UNCERTAINTY OF JURY VERDICTS AND KEEP LEGAL BILLS TO A MINIMUM THIS IS THE SYSTEM THAT HUNDREDS OF CORPORATIONS ARE IN FACT CHOOSING IN A QUIET LEGAL REVOLUTION WITH GREAT LONGTERM CONSEQUENCES FOR BOTH COMPANIES AND THE COURTS INSTEAD OF GOING TO COURT SUCH COMPANIES ARE LETTING A BURGEONING INDUSTRY OF PRIVATE MEDIATION AND ARBITRATION FIRMS RESOLVE THEIR LEGAL DISPUTES RANGING FROM AUTOACCIDENT CASES TO THE BIGGEST ANTITRUST SUITS LAST YEAR ALONE MORE THAN 40000 CIVIL CASES THAT ONCE WOULD HAVE BEEN HANDLED IN THE NATION'S COURTS WERE RESOLVED BY FOUR MAJOR FIRMS THAT SELL QUICKER LESS COSTLY LESS PROCEDURALLY COMPLEX DISPUTE RESOLUTION AND EVERY WEEK IT SEEMS KEY PLAYERS IN ANOTHER INDUSTRY FROM BANKING TO FOOD TO INSURANCE ANNOUNCE THAT THEY WILL SUBMIT A MAJOR AREA OF LITIGATION TO SOME FORM OF MEDIATION OR ARBITRATION THE SAVINGS FOR COMPANIES SO FAR HAVE BEEN TREMENDOUS SINCE 1990 406 COMPANIES TRACKED BY THE CENTER FOR PUBLIC RESOURCES A NONPROFIT GROUP THAT PROVIDES MEDIATORS AND ARBITRATORS SAVED MORE THAN 150 MILLION IN LEGAL FEES AND EXPERTWITNESS COSTS BY USING LITIGATION ALTERNATIVES THE CASES INVOLVED DISPUTES WITH MORE THAN 5 BILLION AT STAKE I THINK THAT WE'RE WITNESSING THE EMERGENCE OF A FREE MARKET IN DISPUTE RESOLUTION WHICH IS CHALLENGING THE TRADITIONAL STATEOWNED MONOPOLY IN DISPUTE RESOLUTION WHICH OF COURSE IS THE COURTS SAYS HOWARD V GOLUB GENERAL COUNSEL OF PACIFIC GAS & ELECTRIC CO WITH THE HELP OF A MEDIATOR PACIFIC GAS & ELECTRIC RECENTLY SETTLED SIX DISPUTES STEMMING FROM THE CRASH OF A HELICOPTER THAT HIT ONE OF THE UTILITY'S ELECTRICAL LINES SUCH A CASE TYPICALLY WOULD HAVE TAKEN TWO YEARS TO WIND ITS WAY THROUGH COURT PG&E ESTIMATES THAT IT WOULD HAVE COST 300000 TO 500000 TO LITIGATE IF THE CASE SETTLED JUST BEFORE TRIAL DOUBLE THAT IF IT WAS TRIED TO A VERDICT INSTEAD THE CASE WAS BROUGHT TO A CLOSE WITHIN 10 MONTHS OF THE ACCIDENT AND LITIGATION COSTS WERE ABOUT 20000 TERMS OF THE SETTLEMENT WERE CONFIDENTIAL ANOTHER REASON COMPANIES LIKE MEDIATION SINCE EMBARKING ON AN AGGRESSIVE LITIGATIONALTERNAIVE PROGRAM IN 1988 THE AMOUNT PG&E HAS PAID OUT IN JUDGMENTS AND SETTLEMENTS HAS DROPPED 25 ACCORDING TO MR GOLUB THE LEGAL DEPARTMENT'S OPERATION COSTS INCLUDING LEGAL FEES HAS DECLINED 9 MEDIATION WAS NOT THE SOLE REASON FOR THE DECLINES BUT MR GOLUB CALLS THE EARLY AND QUICK RESOLUTION OF LITIGATION AN IMPORTANT CONTRIBUTING FACTOR MR GOLUB WAS AN EARLY CONVERT TO LITIGATION ALTERNATIVES HE HAS CALLED ON THE SERVICES OF A BATTERY OF NATIONAL MEDIATION FIRMS INCLUDING JUDICIAL ARBITRATION & MEDIATION SERVICES INC FAMILIARLY CALLED JAMS AND ENDISPUTE INC KEY TO MR GOLUB'S SUCCESS HAS BEEN HIS EFFORTS TO CONVINCE PG&E'S OUTSIDE LAWYERS TO HELP AVOID THE COURTHOUSE HE HAS MADE IT CLEAR TO THOSE LAWYERS THAT THEIR PERFORMANCE WOULD BE EVALUATED IN PART ON THE BASIS OF HOW THEY USED MEDIATION AND ARBITRATION TECHNIQUES IT WAS THE RELUCTANCE OF LAW FIRMS THAT MADE MEDIATION A FRINGE MOVEMENT OF THE LEGAL PROFESSION FOR SO LONG QUITE SIMPLY THERE WAS NO FINANCIAL INCENTIVE FOR LAWYERS TO GIVE UP ENDLESS COURT BATTLES FOR WHICH THEY BILLED AT HOURLY RATES LAW FIRMS HAVE BEEN BUILT ON THE ANTITHESIS OF LITIGATION ALTERNATIVES THE ADVERSARY SYSTEM SAYS KENNETH R FEINBERG A WASHINGTON LAWYER WHO RECENTLY LEFT A LARGE LAW FIRM TO START HIS OWN COMPANY SPECIALIZING IN SETTLING BIG CASES IT'S NOT EXACTLY FINANCIALLY A PLUS TO SEE THE THREE FOUR OR FIVEYEAR LITIGATIONS RESOLVED IN A MATTER OF MONTHS OR WEEKS BUT NOW COMPANIES ARE TAKING THE LEAD IN PUSHING FOR LITIGATION ALTERNATIVES LITIGATION COSTS HAVE BEEN SO SUBSTANTIAL IN THE LAST FEW YEARS AS TO INTRUDE ON MANAGEMENT'S PERCEPTION OF PROGRESS SAYS JACK P ETHERIDGE A FORMER GEORGIA STATE COURT JUDGE WHO IS NOW A MEDIATOR FOR JAMS AT THE SAME TIME LITIGATION ALTERNATIVES HAVE BECOME EASIER TO USE TRADITIONALLY COMPANIES THAT WANTED TO AVOID COURT AND COULDN'T RESOLVE THEIR DIFFERENCES BY THEMSELVES HAD ONLY ONE OPTION ARBITRATION BUT ARBITRATION IS BINDING ONE SIDE WINS MANY COMPANIES WANTED A MORE FLEXIBLE APPROACH WHERE COMPROMISES COULD HELP REPAIR BUSINESS RELATIONSHIPS THE NEW MEDIATION FIRMS WERE THE ANSWER THEY CUSTOMIZE MEDIATION OR ARBITRATION PROCEEDINGS TO FIT THE NEEDS OF THE DISPUTING PARTIES MEDIATORS CAN ENGAGE IN SHUTTLE DIPLOMACY OR EXPRESS THEIR OPINION ON THE VALUE OF A CASE LAWYERS CAN BE BANNED FROM THE CONFERENCE ROOM AND MOST SIGNIFICANTLY THE PRETRIAL FACTFINDING STAGE KNOWN AS DISCOVERY WHICH CAN LAST YEARS CAN BE STREAMLINED TO THE SIMPLE EXCHANGE OF A FEW DOCUMENTS THERE'S NO ORTHODOXY ANYMORE WITHIN THE BUSINESSDISPUTE ARENA SAYS DANIEL H WEINSTEIN A FORMER CALIFORNIA STATE COURT JUDGE WHO NOW MEDIATES FOR JAMS THE GOOD MEDIATORS ARE DESIGN SPECIALISTS THEY ARE CRAFTING THE SYSTEM IN THE PUBLIC SYSTEM YOU HAVE TO FIT YOUR DISPUTE INTO THE SYSTEM TO RESOLVE IT GOING PRIVATE ALSO ALLOWS BUSINESSES TO CIRCUMVENT THE LOTTERY SYSTEMS BY WHICH COURTS ASSIGN JUDGES MICHAEL J DONTZIN A FORMER NEW YORK STATE JUDGE NOW WITH ENDISPUTE SUMS UP THE ATTRACTIONS OF MEDIATION THIS WAY HERE YOU WRITE YOUR OWN RULES AND PICK YOUR OWN JUDGE CAPITALIZING ON THE DISCONTENT OF A NATIONAL JUDICIARY THAT IS OVERWORKED AND UNDERPAID THE LEADING MEDIATION FIRMS HAVE RECRUITED SOME OF THE NATION'S MOST DISTINGUISHED JUDGES A FORMER JUDGE HELPS BRING REALITY INTO FOCUS FOR THE PARTIES SAYS NATIONSBANK CORP DEPUTY GENERAL COUNSEL RICHARD W SIMMONS WHO HAS OPTED FOR MEDIATION FOR ABOUT 40 DISTRESSEDLOAN CASES IN THE LAST 18 MONTHS THE CREDIBILITY IS JUST SO ENORMOUS AND THAT'S THE THING THAT WE'RE LOOKING FOR ALTHOUGH MANY JUDGES JOIN MEDIATION FIRMS WHEN THEY REACH RETIREMENT AGE OTHERS MAKE THE SWITCH EARLIERLURED AT LEAST IN PART BY MONEY MOST STATE JUDGES TAKE HOME ROUGHLY THE SAME SALARY AS NEW LAWYERS WHO JOIN BIG LAW FIRMS RIGHT OUT OF SCHOOL ROUGHLY 60000 TO 80000 AS PRIVATE MEDIATORS JUDGES CAN EARN TWICE AS MUCH CRITICS WARN THAT THE GROWTH OF PRIVATE MEDIATION FIRMS IS DRAINING THE PUBLIC COURT SYSTEM OF SOME OF ITS BEST JUDGES AND REMOVING SOME IMPORTANT CIVIL CASES FROM THE COURTS' DOMAIN AND THUS FROM THE PUBLIC'S VIEW IF THE TREND CONTINUES THEY SAY THE NATION COULD END UP WITH A DUAL SYSTEM IN WHICH THE RICH BUY HIGHQUALITY JUSTICE ON THE PRIVATE MARKET AND THE POOR GET WHAT'S LEFT OVER MANY LAWYERS AND JUDGES WORRY IN PARTICULAR THAT THE MOVE TO PRIVATE DISPUTE RESOLUTION WILL ROB THE PUBLIC OF THE LEGAL PRECEDENTS THAT ARE THE FOUNDATION OF THE JUSTICE SYSTEM EVEN MATTHEW CROSSON CHIEF ADMINISTRATOR OF NEW YORK'S OVERBURDENED COURTS AND A SUPPORTER OF LITIGATION ALTERNATIVES BELIEVES THAT SECRET ARBITRATION AND MEDIATION DECISIONS MAY BE BAD FOR THE PUBLIC IN SOME CASES THE SECRET RESOLUTION OF A PRODUCTLIABILITY CASE HE NOTES MEANS THE PRODUCT DEFECT MAY GO UNCORRECTED BECAUSE THE DISPUTE WAS RESOLVED IN A PRIVATE SETTING BUT THE CORPORATE WORLD FINDS THE ADVANTAGES OF MEDIATION HARD TO RESIST AT CHEVRON CORP MEDIATION HAD BEEN TALKED ABOUT FOR YEARS BUT USED ONLY SPARINGLY SAYS PATRICK S HOBIN GENERAL COUNSEL OF THE COMPANY'S CHEVRON USA PRODUCTION CO UNIT THEN CHEVRON'S LEGAL TAB HIT 65 MILLION THE CORPORATE MANAGEMENT DECIDED THAT THEY DON'T WANT TO KEEP SPENDING THIS KIND OF MONEY ON LITIGATION MR HOBIN SAYS NOW THE COMPANY WILL EVALUATE EVERY CASE TO SEE IF LITIGATION ALTERNATIVES CAN BE USED CHEVRON HOPES TO SAVE 500000 IN FEES THIS YEAR BY 1994 IT EXPECTS TO BE SAVING 2 MILLION A YEAR MR HOBIN SAYS CHEVRON RECENTLY DISPOSED OF A MAJOR LITIGATION ALBATROSS WITH THE HELP OF MEDIATION LAST MONTH CHEVRON MOBIL CORP'S MOBIL OIL UNIT AND ROYAL DUTCH/SHELL GROUP'S SHELL OIL CO UNIT SETTLED AN 18YEAROLD PRICEFIXING CASE BROUGHT BY CALIFORNIA ARIZONA WASHINGTON AND OREGON MR WEINSTEIN OF JAMS WAS BROUGHT IN TO MEDIATE ABOUT EIGHT MONTHS AGO AS THE PARTIES PREPARED FOR TRIAL GIVEN THAT WE WERE LOCKED IN FIERCE LITIGATION FOR MUCH OF THE LAST 18 YEARS I THINK IT WOULD HAVE BEEN VERY DIFFICULT TO SETTLE FACE TO FACE WITHOUT THE USE OF A MEDIATOR SAYS CHEVRON'S ATTORNEY ROBERT A MITTELSTAEDT OF PILLSBURY MADISON & SUTRO EACH SIDE MADE PRESENTATIONS DURING SEVERAL GROUP SESSIONS AND THEN MR WEINSTEIN SHUTTLED BETWEEN PARTIES SOMETIMES PARTIES ARE WILLING TO REVEAL THINGS TO A NEUTRAL MEDIATOR THAT THEY OTHERWISE WOULDN'T REVEAL TO THE OTHER SIDE MR MITTELSTAEDT SAYS CHEVRON'S CASH SHARE OF THE 77 MILLION SETTLEMENT WAS 294 MILLION CHEVRON SENIOR VICE PRESIDENT CHARLES RENFREW ESTIMATES THAT MANY MILLIONS OF DOLLARS IN LEGAL FEES WERE SAVED PROBABLY THIS WOULD NEVER HAVE BEEN DONE 10 YEARS AGO HE SAYS NOBODY WOULD HAVE EVEN THOUGHT ABOUT IT GENERAL MOTORS CORP LAUNCHED AN ARBITRATION AND MEDIATION PROGRAM FOR ITS DEALERS ABOUT TWO YEARS AGO WITH THE HELP OF ENDISPUTE SO FAR 78 CASES HAVE GONE THROUGH OR ARE GOING THROUGH THE PROGRAM THE CASES GENERALLY SETTLE ACCORDING TO H RICHARD ELMQUIST A GM INHOUSE LAWYER DISPUTES HE SAYS TYPICALLY ARE RESOLVED IN A DAY WILLIAM COULTER WHOSE PHOENIX CADILLAC DEALERSHIP GENERATES 55 MILLION IN REVENUES A YEAR SETTLED A DISPUTE WITH GM OVER CHARGES FOR REPAIR WORK HE DID ON CARS UNDER WARRANTY GM CLAIMED IT HAD OVERREIMBURSED HIM BY 100000 AFTER A MEDIATION THAT LASTED LESS THAN A DAY MR COULTER AGREED TO PAY GM 25000 MR COULTER FELT THAT HE COULD HAVE PUSHED GM HARDER BUT DECIDED NOT TO QUIBBLE IT WAS MORE IMPORTANT FOR ME TO RESOLVE THE PROBLEM AND HAVE A GOOD WORKING RELATIONSHIP WITH THE FACTORY HE SAYS NOT ALL MEDIATIONS END HAPPILY OF COURSE FRANK G EVANS A RESPECTED FORMER TEXAS STATE JUDGE RECENTLY TRIED TO MEDIATE A MULTIMILLIONDOLLAR CONTRACT CASE CHEVRON FILED AGAINST A NATURALGAS PIPELINE COMPANY BUT MR EVANS WAS UNABLE TO BRING THE SIDES TOGETHER AND DECIDED SOME MORE DISCOVERY WAS NEEDED ACCORDING TO MR HOBIN OF CHEVRON SOMETIMES EVEN THE BEST MEDIATOR CAN'T PULL IT OFF 9303220093 930322 LETTERS TO THE EDITOR NONPROFIT MAILERS FACE DEVASTATING POSTAL RISE WE APPRECIATE YOUR ARTICLE CALLING ATTENTION TO THE HUGE POSTAGE RATE INCREASE THAT NONPROFIT ORGANIZATIONS WILL FACE IN OCTOBER IF A PERMANENT SOLUTION IS NOT FOUND TO WHAT HAS BECOME AN ANNUAL RUNAWAY ROLLER COASTER RIDE NONPROFIT GROUPS MAY FACE HIGHER RATES AS FUNDING CUT LOOMS FOR POSTAL SERVICE FEB 22 IT IS IMPORTANT TO CLARIFY THAT THE ALLIANCE OF NONPROFIT MAILERS' PROPOSAL ASKS ALL MAILERS INCLUDING NONPROFITS TO SHARE IN THE COSTS OF REFORM WE ARE NOT LOOKING FOR A FREE RIDE WE ARE ATTEMPTING TO REACH AN EQUITABLE METHOD TO ENSURE THAT NONPROFIT POSTAGE RATES REFLECT THE PUBLIC AND SOCIAL BENEFITS CONGRESS HAS DETERMINED TO EXIST IN THE NONPROFIT MAIL STREAM FOR MORE THAN 20 YEARS WE HOPE THAT A LEGISLATIVE COMPROMISE CAN BE REACHED THAT WILL RESTRUCTURE THE POSTAL RATE SYSTEM TO INCLUDE A PREFERRED RATE FOR QUALIFIED ORGANIZATIONS AND REDUCE PERMANENTLY THE NEED FOR LARGE APPROPRIATIONS FROM CONGRESS THE 35 POSTAGE RATE INCREASE THAT WOULD BE IMPOSED WITHOUT A LEGISLATIVE SOLUTION WOULD BE DEVASTATING TO THE NONPROFIT COMMUNITY AS WAS POINTED OUT IN YOUR ARTICLE PREFERRED RATE MAIL GENERATES MORE THAN 50 BILLION IN CHARITABLE GIVING ANNUALLY AND ENABLES NONPROFIT GROUPS TO DEVOTE MORE RESOURCES TO IMPORTANT PROGRAMS THAT ARE BENEFICIAL TO ALL OF SOCIETY 9303220092 930322 US FIRMS ARE SEEN TAKING WRONG STEPS ON THE GLOBAL ROAD STUDY OF 43 COMPANIES UNCOVERS FEW TIES BETWEEN CHANGES AND INTERNATIONAL SUCCESS BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL MANY US CORPORATIONS MAY BE MARCHING DOWN THE WRONG PATH TOWARD GLOBALIZATION BECAUSE THEY PLAN CHANGES THAT AREN'T TIED TO SUCCESS ABROAD THAT'S THE CONCLUSION OF A STUDY OF 43 LARGE US CONSUMER COMPANIES BY MANAGEMENT CONSULTANTS MCKINSEY & CO THE COMPANIES SAID THEY INTEND A TOTAL OF 137 ORGANIZATIONAL CHANGES FOR THEIR INTERNATIONAL OPERATIONS OVER THE NEXT FIVE YEARS BUT 77 OF THESE CHANGES CANNOT BE LINKED TO INTERNATIONAL SUCCESS SAYS THE STUDY BASED ON A SURVEY OF CHIEF EXECUTIVES AND OTHER SENIOR OFFICERS THE STUDY THOUGH SMALL APPEARS TO BREAK NEW GROUND BY SPELLING OUT STRATEGIES WITH THE WEAKEST AND STRONGEST LINKS TO INTERNATIONAL SUCCESS THIS KIND OF STUDY ISN'T WIDELY DONE NOTES CHRISTOPHER BARTLETT A HARVARD PROFESSOR OF BUSINESS ADMINISTRATION ITS FINDINGS ARE FASCINATING HE ADDS IN THE MCKINSEY STUDY CHANGES SEEN AS NOT CRITICAL FOR SUPERIOR INTERNATIONAL PERFORMANCE TYPICALLY INVOLVE ALTERING A COMPANY'S INTERNATIONAL ORGANIZATIONAL STRUCTURE AMONG THEM ARE THE CREATION OF GLOBAL DIVISIONS CENTERS OF EXCELLENCE AND INTERNATIONAL BUSINESS UNITS OTHER STRATEGIES WITH LITTLE APPARENT CORRELATION TO FOREIGN SUCCESS INCLUDE CROSSBORDER TASK FORCES AND GLOBALLY INTEGRATED MANAGEMENTINFORMATION SYSTEMS ALL OF THESE FEATURES ARE A BIT IN VOGUE AND IN FACT HAVE BEEN PROMOTED BY US CONFESSES INGO THEUERKAUF A MCKINSEY PRINCIPAL IN STAMFORD CONN AND ONE OF THE STUDY'S THREE AUTHORS BUT WE CANNOT AT THIS POINT FIND A CORRELATION BETWEEN SUCH STEPS AND INTERNATIONAL SUCCESS HE CONTINUES THE STUDY SUGGESTS THAT SOME PLANNED CHANGES NO LONGER DISTINGUISH SUCCESSFUL COMPANIES BECAUSE NEARLY EVERYONE HAS IMPLEMENTED THEM SUCH AS LETTING LOCAL NATIONALS LEAD FOREIGN SUBSIDIARIES MR THEUERKAUF SAYS OTHER APPROACHES SIMPLY MAY BE TOO NEW TO INFLUENCE INTERNATIONAL SALES AND PROFITS SUCH AS CENTERS OF EXCELLENCE IN WHICH ONE FACILITY TAKES GLOBAL RESPONSIBILITY FOR A KEY PRODUCT OR EMERGING TECHNOLOGY A NUMBER OF BIG US MAKERS OF CARS CHEMICALS FOOD AND OTHER PRODUCTS RECENTLY HAVE SET UP CENTERS OF EXCELLENCE AROUND THE WORLD THE MCKINSEY STUDY HOLDS BROAD IMPLICATIONS FOR US BUSINESSES WITH GLOBAL ASPIRATIONS THEY MUST TAKE A TOUGHER LOOK AT PLANNED INTERNATIONAL STRATEGIES OR THEY MAY NOT HAVE A STRONGER COMPETITIVE POSITION OUTSIDE THE US MR THEUERKAUF CONTENDS IT MAY BE WRONG TO EXPECT INTERNATIONAL REWARDS JUST FROM STRUCTURAL CHANGES ORGANIZATIONAL STRUCTURE DOESN'T MATTER THAT MUCH THE CONSULTANT ADDS OTHER THINGS DO MATTER MORE THE STUDY IDENTIFIES 11 TRAITS OF THE MOST INTERNATIONALLY SUCCESSFUL COMPANIES AFTER RANKING THE 43 SURVEYED CONCERNS BY THEIR RELATIVE INTERNATIONAL GROWTH IN SALES AND PROFIT WITHIN A SPECIFIC INDUSTRY AMONG OTHER THINGS MORE SUCCESSFUL CORPORATIONS LET SUBSIDIARIES' PRODUCT MANAGERS REPORT TO A COUNTRY GENERAL MANAGER THE LIST ISN'T A SUREFIRE PRESCRIPTION FOR GLOBAL SUCCESS MR THEUERKAUF CAUTIONS YOU STILL NEED TO HAVE THE RIGHT PRODUCTS AND BE IN THE RIGHT MARKET HE CONTINUES NEVERTHELESS SAYS PROF BARTLETT WHO HAS WRITTEN EXTENSIVELY ABOUT GLOBAL CORPORATIONS THERE IS A LOT THAT'S INTUITIVELY HELPFUL AND THAT MANAGERS CAN FOCUS ON WITH THOSE 11 CHARACTERISTICS BAUSCH & LOMB INC A PARTICIPANT IN THE MCKINSEY STUDY HAS BEEN PURSUING SEVERAL STRATEGIES ON THAT LIST WHILE ALSO REVAMPING ITS INTERNATIONAL ORGANIZATIONAL STRUCTURE LAST MONTH THE ROCHESTER NY MAKER OF HEALTHCARE AND OPTICAL PRODUCTS PROMOTED RONALD L ZARELLA THE 43YEAROLD PRESIDENT OF ITS INTERNATIONAL DIVISION TO PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT COMPANY HE HELPED SET UP 11 OVERSEAS UNITS AND SAW INTERNATIONAL SALES RISE TO 50 OF REVENUE FROM 26 LAST YEAR BAUSCH & LOMB COLLAPSED ITS INTERNATIONAL DIVISION INTO A WORLDWIDE SYSTEM OF THREE REGIONS AND CREATED BUSINESS MANAGEMENT COMMITTEES THAT OVERSEE GLOBAL MARKETING AND MANUFACTURING STRATEGIES FOR FOUR MAJOR PRODUCT LINES THE COMMITTEES INCLUDE EACH LINE'S REGIONAL PRESIDENT BASED IN HONG KONG LONDON OR ROCHESTER SIX WEEKS AGO THE PANELS BEGAN USING VIDEOCONFERENCING FACILITIES FOR THEIR QUARTERLY MEETINGS THROUGH THIS PROCESS WE ARE COORDINATING CENTRALLY SOME ACTIVITIES THAT WEREN'T COORDINATED WELL BEFORE SAYS DANIEL GILL CHAIRMAN AND CEO I THINK GLOBAL COORDINATION IS ABSOLUTELY ESSENTIAL BUT WE DO IT IN A WAY THAT MAINTAINS THE INTEGRITY OF THE FOREIGN SUBSIDIARIES 9303220091 930322 THREE PRIMARY DEALERS FACE LAWSUITS ON SECURITIES FRAUD IN LINK TO WYMER BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THREE PRIMARY DEALERS IN US GOVERNMENT SECURITIES HAVE BEEN SUED FOR SECURITIES FRAUD BY A NUMBER OF MUNICIPAL CLIENTS OF ONETIME MONEY MANAGER AND CONVICTED CON ARTIST STEVEN WYMER MR WYMER HAS PLEADED GUILTY TO DEFRAUDING INSTITUTIONAL INVESTORS INCLUDING A NUMBER OF SMALL MUNICIPALITIES IN CALIFORNIA AND ELSEWHERE OF ABOUT 174 MILLION HIS SENTENCING IS SET FOR MARCH 31 ON FEDERAL CHARGES INCLUDING SECURITIES FRAUD RACKETEERING AND MAIL FRAUD LAWSUITS FILED BY VARIOUS MUNICIPALITIES DEFRAUDED BY MR WYMER CLAIM THE THREE PRIMARY DEALERS PROVIDED HIM WITH INSIDE HELP THE FIRMS ARE SANWABGK SECURITIES CO OF NEW YORK CARROLL MCENTEE & MCGINLEY INC OF NEW YORK AND GREENWICH CAPITAL MARKETS INC OF GREENWICH CONN PRIMARY DEALERS ARE THOSE FIRMS DESIGNATED AS SUCH BY THE FEDERAL RESERVE BANK OF NEW YORK WITH WHICH THE NEW YORK FED HAS A SPECIAL BUSINESS RELATIONSHIP AND THROUGH WHICH THE FED CONDUCTS MONETARY POLICY LAWYERS FOR GREENWICH CAPITAL AND SANWA BGK SAID THE FIRMS DENIED WRONGDOING A CARROLL MCENTEE SPOKESMAN SAID THE FIRM DECLINED TO COMMENT ON MATTERS IN LITIGATION THESE FIRMS ARE AMONG THE DEFENDANTS ACCUSED OF WYMERRELATED WRONGDOING IN SEPARATE LAWSUITS FILED BY THE CALIFORNIA MUNICIPALITIES OF LOMA LINDA SANGER AND LA QUINTA BUT LAWYERS INVOLVED IN THE MATTER SAID THESE FIRMS ARE CITED IN SIMILAR LAWSUITS BROUGHT BY OTHER SMALL GOVERNMENTAL UNITS JAMES RICKARDS SENIOR VICE PRESIDENT AND GENERAL COUNSEL AT GREENWICH CAPITAL MARKETS SAID GREENWICH IS A DEFENDANT IN 12 LAWSUITS THE OTHER TWO PRIMARY DEALERS ALSO ARE SUBJECT TO MULTIPLE LAWSUITS BY FORMER CLIENTS OF MR WYMER ALTHOUGH REPRESENTATIVES FOR THESE FIRMS WERE UNABLE TO CONFIRM THE PRECISE NUMBER OF LAWSUITS PENDING AGAINST THEM A SANWA BGK LAWYER SAID THE FIRM IS STILL BEING SERVED WITH SUITS MR WYMER TOLD CONGRESS RECENTLY THAT FIVE SECURITIES DEALERS INCLUDING FOUR PRIMARY DEALERS COLLUDED WITH HIM TO DEFRAUD CLIENTS INVESTING IN GOVERNMENT AND OTHER SECURITIES BY AMONG THINGS HELPING HIM KEEP TRADING INFORMATION FROM HIS CLIENTS HE DIDN'T NAME THE DEALERS SECURITIES AND EXCHANGE COMMISSION OFFICIALS HAVE SAID THEIR INVESTIGATION INTO BROKERAGE FIRMS' DEALINGS WITH MR WYMER IS CONTINUING BUT THAT THEY BELIEVE EMPLOYEES AT ONLY ONE FIRM KNOWINGLY AIDING MR WYMER IN HIS WRONGDOING REFCO SECURITIES INC A NEW YORK NONPRIMARY DEALER SECURITIES FIRM NAMED AS A DEFENDANT IN WYMERRELATED LAWSUITS IS COOPERATING WITH THE SEC AND JUSTICE DEPARTMENT IN THEIR INVESTIGATIONS SAID JACK WEINBERG A LAWYER FOR THE FIRM REFCO ISN'T RELATED TO REFCO PARTNERS A ONETIME PRIMARY DEALER THAT WAS DISSOLVED SOME YEARS AGO MR WEINBERG DENIED ANY WRONGDOING BY REFCO WHICH HE SAID IS A DEFENDANT IN A DOZEN WYMERRELATED SUITS GREENWICH CAPITAL'S MR RICKARDS DENIED THE ALLEGATIONS OF WRONGDOING AND QUESTIONED THE RELIABILITY OF MR WYMER'S WORD HE FAULTED A CONGRESSIONAL PANEL FOR SERVING AS A FORUM FOR WHAT HE CHARACTERIZED AS MR WYMER'S EFFORTS TO RECEIVE A LENIENT SENTENCE CAROL CORCORAN GENERAL COUNSEL OF SANWA BGK SAID MR WYMER HAS CONFIRMED UNDER OATH THAT THE FIRM WASN'T INVOLVED AT ALL IN HIS WRONGDOING SHE SAID ALLEGATIONS OF IMPROPRIETY BY SANWA BGK IN CONNECTION WITH MR WYMER ARE TOTALLY FALSE AND WITHOUT FOUNDATION 9303220090 930322 TECHNOLOGY APPLE TO SELL NEW SERVER COMPUTERS EXPAND LINE WITH PENBASED MODEL BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC FILLING A BIG VOID IN ITS PRODUCT LINE SAID IT WILL BEGIN NEXT MONTH SELLING COMPUTERS SPECIFICALLY DESIGNED TO WORK AS SERVERS MACHINES INCREASINGLY USED BY CORPORATIONS TO MANAGE DESKTOP COMPUTER NETWORKS THE LONGANTICIPATED MOVE IS CRITICAL TO THE CUPERTINO CALIF COMPUTER MAKER WHICH IS STRUGGLING TO FIND WAYS TO INCREASE ITS SALES TO BUSINESS USERS MANY OF APPLE'S RIVALS WHICH SELL PERSONAL COMPUTERS COMPATIBLE WITH THOSE MADE BY INTERNATIONAL BUSINESS MACHINES CORP ALREADY SELL SERVER COMPUTERS AND ARE PROFITING FROM THE INCREASING USE OF COMPUTER NETWORKS THAT USE SERVERS TO TIE TOGETHER DESKTOP PCS WITH SPECIAL SOFTWARE IBMCOMPATIBLE SERVERS WILL WORK WITH APPLE MACHINES UNLIKE SERVERS IN IBMCOMPATIBLE NETWORKS APPLE'S SERVERS WON'T REQUIRE THE SPECIAL SOFTWARE TO MAKE THEM WORK WITH MACINTOSH COMPUTERS SEPARATELY APPLE IS CURRENTLY DEVELOPING A VERSION OF ITS POWERBOOK NOTEBOOKSIZE COMPUTER THAT USES ELECTRONIC PENS TO INPUT DATA SOURCES FAMILIAR WITH APPLE'S PLANS SAID APPLE DECLINED TO COMMENT THE MARKET FOR PENBASED COMPUTERS HAS BEEN SLOW GROWING ALTHOUGH PENBASED IBMCOMPATIBLE COMPUTERS HAVE BEEN AVAILABLE FOR YEARS WITH ITS EXPANDED PRODUCT LINE APPLE AIMS TO ENTICE SMALL AND MEDIUMSIZE BUSINESSES TO BUY FROM IT ALL THE COMPUTER EQUIPMENT NECESSARY TO OUFIT THEIR OFFICES THE SERVERS HELP APPLE OPEN UP THE BID PROCESS FOR CORPORATE SALES WHERE THEY HAVEN'T BEEN ABLE TO BID BEFORE SAID WILLIAM HIGGS A VICE PRESIDENT AT INFOCORP A MARKETRESEARCH FIRM IN THE PAST APPLE HAS ONLY BEEN ABLE TO OFFER ITS QUADRA HIGHEND DESKTOP COMPUTERS TO CUSTOMERS AS MAKESHIFT SERVERS THE NEW WORKGROUP SERVERS CAN PROCESS DATA UP TO FOUR TIMES FASTER THAN QUADRAS AND HAVE OTHER FEATURES ESPECIALLY SUITED FOR USE IN COMPUTER NETWORKS SUCH AS LARGE DISK DRIVES WHICH ARE USED TO STORE HUGE AMOUNTS OF DATA AND TAPE DRIVES WHICH ARE USED TO PROVIDE A BACKUP MEANS FOR STORING INFORMATION AN APPLE SPOKESMAN SAID APPLE ISN'T LOOKING TO COMPETE HEADON WITH COMPANIES SUCH AS IBM HEWLETTPACKARD CO AND OTHERS WHO MAKE SERVERS ESPECIALLY FOR IBMCOMPATIBLE COMPUTERS SAID DOUGLAS MCLEAN A MANAGER OF APPLE'S ENTERPRISE DIVISION ALTHOUGH APPLE'S MACHINES WILL WORK WITH COMPUTERS MADE BY OTHER COMPANIES THEY ARE PRIMARILY DESIGNED FOR NETWORKS CONSISTING MOSTLY OF APPLE'S MACINTOSH COMPUTERS THIS IS A FOCUSED EXTENSION OF OUR EXISTING PRODUCT LINE MR MCLEAN SAID MORRIS TARADALSKY AN APPLE VICE PRESIDENT DECLINED TO ESTIMATE SALES OF THE NEW MACHINES BUT SAID THE COMPANY'S TARGET MARKETS INCLUDE COMPANIES SCHOOLS AND GOVERNMENT AGENCIES WORKGROUP SERVERS WILL SELL FROM 3000 TO 13000 DEPENDING ON FEATURES APPLE SAID IT EXPECTS TO BEGIN SHIPPING THE HIGHEND WORKGROUP SERVER 95 MODELS BY THE END OF APRIL AND TWO OTHER VERSIONS THIS SUMMER MR TARADALSKY SAID APPLE IS ALSO DEVELOPING SERVER COMPUTERS BASED ON A MICROPROCESSOR CALLED POWERPC CURRENTLY UNDER JOINT DEVELOPMENT WITH MOTOROLA INC AND IBM HE SAID HE EXPECTS POWERPCBASED SERVERS TO BEGIN SELLING SOMETIME IN 1994 9303220089 930322 SHEIK'S ASSOCIATES DISPUTE HIS DISAVOWAL OF LINKS TO KEY FIGURES IN BOMB INQUIRY BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MEMBERS OF A BROOKLYN MOSQUE WHERE SHEIK OMAR ABDELRAHMAN PREACHED REGULARLY WERE STUNNED LAST WEEK WHEN THE CLERIC DENIED ON TELEVISION THAT HE KNOWS THE MOSQUE'S PRESIDENT IBRAHIM ELGABROWNY ONE OF THE MEN UNDER INVESTIGATION IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING ASSOCIATES OF THE SHEIK WHO WAS INTERVIEWED THURSDAY ON ABC'S PRIMETIME LIVE SHOW AND ON CABLE NEWS NETWORK SAID THE EGYPTIAN CLERIC MADE OTHER INCORRECT STATEMENTS AS WELL I WAS WATCHING TV AND THINKING MY GOD THIS MAN IS RIDICULOUS' SAID A FORMER BOARD MEMBER AND COFOUNDER OF BROOKLYN'S ABU BAKR MOSQUE WHO ASKED THAT HIS NAME NOT BE USED BECAUSE OF FEAR OF REPRISALS ABU BAKR HAS BEEN THE ONLY NEW YORKAREA MOSQUE IN RECENT MONTHS TO LET SHEIK OMAR GIVE WEEKLY SERMONS MEANWHILE EGYPT HAS DECIDED TO RETRY SHEIK OMAR IN HIS ABSENCE ON CHARGES OF INCITING ANTIGOVERNMENT VIOLENCE THE PREACHER'S LAWYER ADEL AYMOUNI SAID YESTERDAY THAT A CASE BROUGHT AGAINST SHEIK OMAR AND 49 ALLEGED MILITANTS IN WHICH ALL WERE FOUND INNOCENT WOULD BE REHEARD IN A STATE SECURITY COURT IN APRIL A RETRIAL WAS POSSIBLE BECAUSE EGYPTIAN PRESIDENT HOSNI MUBARAK CANCELED THE ORIGINAL VERDICT JUDICIAL SOURCES SAID ALSO YESTERDAY EGYPTIAN AUTHORITIES PREVENTED ONE OF SHEIK OMAR'S WIVES AND FOUR CHILDREN FROM LEAVING THE COUNTRY INVESTIGATORS SPECULATE THAT THE SHEIK'S FANATICAL ISLAMIC RHETORIC MAY HAVE HELPED INSPIRE THE NEW YORK BOMBING ALTHOUGH NO CHARGES HAVE BEEN BROUGHT AGAINST HIM MR ELGABROWNY WAS INDICTED WEDNESDAY ON CHARGES OF ASSAULTING FEDERAL AGENTS WHO WERE SEARCHING HIS APARTMENT AND OF POSSESSION OF FRAUDULENT NICARAGUAN PASSPORTS BIRTH CERTIFICATES AND DRIVER'S LICENSES IN THE NAMES OF EL SAYYID NOSAIR AND HIS FAMILY MOHAMMED SALAMEH THE FIRST SUSPECT ARRESTED IN CONNECTION WITH THE NEW YORK BOMBING HAD LISTED MR ELGABROWNY'S ADDRESS ON HIS NEW YORK DRIVER'S LICENSE APPLICATION WHICH LED FEDERAL AGENTS TO THE BROOKLYN APARTMENT WHERE MR NOSAIR'S FAMILY ALSO LIVED MR NOSAIR WHO WAS ACQUITTED OF KILLING MILITANT RABBI MEIR KAHANE IS IN PRISON SERVING SEVEN TO 23 YEARS FOR RELATED CRIMES AS PRESIDENT OF ABU BAKR MR ELGABROWNY WAS INSTRUMENTAL IN ARRANGING AN INTERVIEW WITH SHEIK OMAR FOR THE WALL STREET JOURNAL IN DECEMBER IT IS POSSIBLE THAT SHEIK OMAR WHO IS BLIND WAS CONFUSED ABOUT WHO MR ELGABROWNY WAS WHEN HE WAS ASKED ABOUT HIM ON TV LAST WEEK BUT THIS SEEMS UNLIKELY IN HIS RAMBLING 90MINUTE INTERVIEW WITH THE JOURNAL THE SHEIK SHOWED A STRONG COMMAND OF NAMES AND HISTORICAL EVENTS MR ELGABROWNY WHO IS BEING HELD WITHOUT BAIL HASN'T CLAIMED NOT TO KNOW SHEIK OMAR IN AN INTERVIEW TWO WEEKS AGO MR ELGABROWNY'S LAWYER MICHAEL WARREN OF BROOKLYN ACKNOWLEDGED THAT HIS CLIENT HAS LINKS TO THE SHEIK BUT SAID THEIR RELATIONSHIP SHOULD HAVE NO BEARING ON THE BOMBING INVESTIGATION ONE FORMER BOARD MEMBER OF ABU BAKR RECALLS A HEATED BOARD DEBATE A FEW MONTHS AGO OVER HOW MUCH THE MOSQUE SHOULD PAY THE SHEIK FOR HIS REGULAR SUNDAYEVENING SERMONS MR ELGABROWNY PREVAILED AT THAT MEETING IN HIS INSISTENCE THAT THE MOSQUE PAY THE SHEIK 60 TO 100 A WEEK AND IT WAS MR ELGABROWNY HIMSELF AS PRESIDENT WHO HANDED THE MONEY TO THE SHEIK EACH WEEK THIS BOARD MEMBER SAID MOSQUE MEMBERS SAID THAT SHEIK OMAR HELPED MR ELGABROWNY RAISE MONEY IN THE NEW YORK AREA AND INTERNATIONALLY FOR MR NOSAIR AND HIS WIFE AND THREE CHILDREN WHO LIVE WITH MR ELGABROWNY'S FAMILY IN BROOKLYN MR ELGABROWNY A COUSIN OF MR NOSAIR SENT AWAY FOR PHONE BOOKS FROM ACROSS THE ARAB WORLD AND USED THEM TO COMPILE A COMPUTER DATA BASE OF POTENTIAL CONTRIBUTORS HE RECRUITED VOLUNTEERS FROM THE MOSQUE TO STUFF SOLICITATIONS INTO ENVELOPES SHEIK OMAR ALSO DENIED ON TV LAST WEEK THAT HE KNOWS MAHMUD ABOUHALIMA WHOM INVESTIGATORS HAVE TRIED TO ARREST IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING BUT WHO MAY HAVE FLED TO PAKISTAN LAWENFORCEMENT OFFICIALS HAVE SAID MR ABOUHALIMA WAS ONCE A DRIVER FOR SHEIK OMAR SOME BROOKLYN MUSLIMS SAID THEY ATTENDED RELIGIOUS FEASTS AND OTHER MOSQUE EVENTS WHERE MR ABOUHALIMA ASSISTED SHEIK OMAR WHO IS FRAIL AND HAS MANY HEALTH PROBLEMS DUE TO DIABETES LOCAL ARAB IMMIGRANTS ALSO SAID MR ABOUHALIMA WAS THE RIGHTHAND MAN OF MUSTAFA SHALABI A MUSLIM POLITICAL ACTIVIST IN BROOKLYN AND SHEIK OMAR'S FIRST SPONSOR IN THE US AFTER AN OPEN AND BITTER DISPUTE BETWEEN SHEIK OMAR AND MR SHALABI OVER MONEY MR SHALABI WAS FOUND MURDERED IN 1991 THE CASE IS STILL UNSOLVED BUT WAS REOPENED IN THE WAKE OF THE BOMBING FBI AGENTS HAVE INTERROGATED SHEIK OMAR ABOUT THE SHALABI MURDER IN THE PAST BUT INVESTIGATORS HAVE SAID THEY HAVEN'T TRIED TO QUESTION HIM SINCE THE BOMBING THE SHEIK IS NOW UNDER A US DEPORTATION ORDER WHICH HE IS APPEALING SHEIK OMAR IN HIS INTERVIEW THE THE JOURNAL DENIED EVER KNOWING MR SHALABI AN ASSERTION THAT MORE THAN A HALF DOZEN BROOKLYN ACQUAINTANCES OF BOTH MEN HAVE SAID IS UNTRUE LAST WEEK THE SAUDIOWNED ASHARQ ALAWSAT NEWSPAPER IN LONDON REPORTED THAT MR SHALABI RAN UP BILLS OF MORE THAN 1000 IN OVERSEAS PHONE CALLS TO SHEIK OMAR BEFORE THE SHEIK WAS ALLOWED TO ENTER THE US ON A TOURIST VISA IN 1990 9303220088 930322 US MAY TRY TO HELP AIRCRAFT MAKERS WITH BAN ON A TYPE OF AIRBUS LEASE BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION HAVING PROMISED TO AID US AIRCRAFT MAKERS MAY TRY TO STOP AIRBUS INDUSTRIE FROM USING A TYPE OF LEASE THAT HAS HELPED THE EUROPEAN CONSORTIUM PLACE ITS JETS WITH AIRLINES ACCORDING TO GOVERNMENT AND INDUSTRY OFFICIALS AIRCRAFT MAKERS HAVE BEEN PUSHING THE ADMINISTRATION TO FOCUS ON THE SOCALLED WALKAWAY JET LEASES TRADE OFFICIALS SAID LAST WEEK THAT THE LEASES ARE ONE OF THE ITEMS THEY WILL DISCUSS WHEN THEY BEGIN TALKS WITH EUROPEAN OFFICIALS LATER THIS MONTH A STRATEGY OF TRYING TO BAN THE USE OF THE LEASES WOULD ILLUSTRATE THE DIFFICULTIES OF TINKERING WITH AVIATION TRADE POLICY US JET MANUFACTURERS HURT BY THE SLOW ECONOMY WOULD GREET THE BAN WARMLY BUT THE MOVE WOULD GET A COOL RECEPTION FROM EQUALLY HARDHIT US AIRLINES WHICH BENEFIT FROM LIBERAL LEASE TERMS NEGOTIATORS IN THE OFFICE OF US TRADE REPRESENTATIVE MICKEY KANTOR MAY PRESS FOR AN END TO WALKAWAY LEASES AS PART OF AN EFFORT TO REDUCE EUROPEAN AIRCRAFT SUBSIDIES WHEN THE TRADE TALKS BEGIN MARCH 31 WITH THE FOUR EUROPEAN COUNTRIES THAT BACK THE AIRBUS CONSORTIUM ACCORDING TO A SENIOR US TRADE OFFICIAL WHO ASKED NOT TO BE IDENTIFIED WALKAWAY LEASES TYPICALLY OFFER AIRCRAFT UNDER FAVORABLE FINANCIAL TERMS MORE IMPORTANTLY THEY ALLOW CARRIERS TO RETURN THE NEW JETS TO MANUFACTURERS IN LESS THAN A YEAR MEANING THE JETS DON'T HAVE TO BE RECORDED ON AIRLINES' BOOKS AN ATTRACTIVE INDUCEMENT AT A TIME THAT THE AMERICAN CARRIERS' BALANCE SHEETS ARE SAGGING THE LEASES SOMETIMES ARE FOR A LONGER TERM BUT STILL ALLOW THE AIRCRAFT TO BE RETURNED ON SHORT NOTICE IN THE PAST YEAR WALKAWAY LEASES HAVE HELPED AIRBUS PLACE NEW JETS WITH DELTA AIR LINES AND UAL CORP'S UNITED AIRLINES BOTH HISTORIC STRONGHOLDS FOR US MANUFACTURERS INTERESTINGLY WALKAWAY LEASES WERE FIRST USED BY A US PRODUCER MCDONNELL DOUGLAS CORP IN A SALE A DECADE AGO TO AMR CORP'S AMERICAN AIRLINES NOW HOWEVER THE US MAKERS SAY AIRBUS CAN UTILIZE THE LEASES MORE EASILY THAN THEY CAN BECAUSE THE EUROPEAN CONSORTIUM'S COSTS ARE LOWER AS A RESULT OF THE SUBSIDIES IT HAS RECEIVED FROM THE FOUR EUROPEAN GOVERNMENTS A BAN ON THE LEASES WOULD BE VIEWED AS A SIGNIFICANT GAIN BY THE MARKET LEADER BOEING CO ALTHOUGH THE SEATTLE MANUFACTURER HOPES FOR EVEN BROADER POLICY CHANGES LAWRENCE CLARKSON BOEING VICE PRESIDENT OF GOVERNMENT AFFAIRS SAID IN AN INTERVIEW WHILE POINTING OUT THAT HE DOESN'T KNOW THE GOVERNMENT'S STRATEGY FOR THE FORTHCOMING ROUND OF TALKS HE SAID HE IS HOPING FOR A BAN ON LOANS TO AIRLINES FROM MANUFACTURERS AND FOR RULES SAYING THAT ALL JET FINANCING MUST BE PROVIDED ON A COMMERCIAL BASIS AT MARKET RATES A SPOKESMAN FOR MCDONNELL DOUGLAS OF ST LOUIS THE WORLD'S THIRDLARGEST AIRCRAFT MAKER BEHIND AIRBUS HAD NO COMMENT AMONG US AIRLINES ONE FLEET MANAGER AT A LARGE CARRIER THAT USES WALKAWAY LEASES SAID A BAN ON THE LEASES WOULD REDUCE HIS FLEXIBILITY FOR COST CONTROL AND HURT HIS LEVERAGE IN NEGOTIATING TERMS OF ORDERS FROM ALL JETMAKERS ALL AIRLINES WILL OBJECT SAID WILLIAM KUTZKE A WASHINGTON AIRLINE CONSULTANT I DON'T THINK THEY WOULD FIND IT IN THEIR BEST INTEREST TO SEE THIS ELIMINATED HE SAID AT AIRBUS ALAN BOYD CHAIRMAN OF NORTH AMERICAN OPERATIONS FOR THE FOURNATION CONSORTIUM SAID HE IS UNAWARE OF ANY PLAN BY THE CLINTON ADMINISTRATION TO SEEK A BAN ON THE LEASES AIRBUS IS BACKED BY AEROSPACE COMPANIES IN GERMANY FRANCE BRITAIN AND SPAIN EXPECTATIONS THAT THE US WILL TAKE A TOUGHER STANCE TOWARD AIRBUS HAVE SOARED SINCE LAST MONTH WHEN PRESIDENT CLINTON REPEATEDLY BASHED THE EUROPEAN SUBSIDIES BUT MR CLINTON WAS WELL AHEAD OF HIS TRADE ADVISERS IN IDENTIFYING EUROPEAN SUBSIDIES AS A CRUCIAL TRADE ISSUE AND SINCE THEN THE NEGOTIATORS HAVE BEEN SCRAMBLING TO PUT TOGETHER A BARGAINING POSITION THAT WOULD MATCH THE PRESIDENT'S RHETORIC WALKAWAY LEASES ARE SEEN BY AIRCRAFT MAKERS AT LEAST AS AN EASY TARGET AND THEY HAVE BEEN PRESSING THE ADMINISTRATION TO TAKE UP THAT ISSUE IN COMING NEGOTIATIONS A NEW BILATERAL PACT WAS SIGNED WITH EUROPE LAST YEAR THAT LIMITS GOVERNMENT SUBSIDIES TO MANUFACTURERS OTHER ISSUES ARE ADDRESSED IN THE BROADER GENERAL AGREEMENT ON TARIFFS AND TRADE REP JAMES OBERSTAR CHAIRMAN OF THE HOUSE AVIATION SUBCOMMITTEE SAID HE BELIEVES THE US WANTS A BAN ON THE LEASES AS PART OF A LARGER PACKAGE OF CHANGES WITH THOSE CHANGES IN PLACE THE MINNESOTA DEMOCRAT SAID THE ADMINISTRATION WOULD BE ABLE TO DECLARE VICTORY ON THE AEROSPACETRADE FRONT FOR HIS PART THE CONGRESSMAN SAID AIRBUS HAS MADE INROADS IN THE US NOT BECAUSE OF FINANCIAL INCENTIVES BUT BECAUSE AIRBUS OUTSMARTED THE US PRODUCERS BY BUILDING ADVANCED AIRCRAFT THAT WERE MORE APPEALING FOR SOME ROUTES HE SAID THE US SHOULD FOLLOW EUROPE AND OPENLY ASSIST IN DEVELOPING ADVANCED AIRCRAFT SUCH AS SUPERSONIC JETS THE CLINTON ADMINISTRATION PLANS TO MOVE IN THAT AREA ALSO VICE PRESIDENT ALBERT GORE HAS SAID HE CONSIDERS THE CREATION OF A RESEARCH CONSORTIUM AIDING AEROSPACE COMPANIES TO BE A PRIORITY IN ADDITION THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION HAS ALREADY ENLISTED AIRCRAFT COMPANIES IN A VENTURE TO DEVELOP A NEXTGENERATION SUPERSONIC JET 9303220087 930322 HEARD ON THE STREET REINSURANCE STOCKS THRIVE ON ILL WINDS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TAKE SEVERAL BILLION DOLLARS IN HURRICANE DAMAGE THROW IN ANOTHER BILLION IN NORTHEAST STORM WRECKAGE AND SEVERAL HUNDRED MILLION MORE FOR A TERRORIST BOMBING BOIL IT DOWN AND WHAT DO YOU GET A ROARING MARKET FOR SMALL TO MEDIUMSIZE PROPERTY AND CASUALTY REINSURANCE STOCKS THAT ANALYSTS SAY COULD KEEP ON RUNNING FOR THE NEXT TWO YEARS REINSURANCE IS SO CALLED BECAUSE IT ESSENTIALLY IS INSURANCE FOR INSURANCE COMPANIES IT'S A WAY FOR THE GIANT INSURERS TO LAY OFF SOME OF THE RISKS THEY TAKE ON BY SELLING POLICIES THERE SEEMS TO BE A LACK OF PROPERTY REINSURANCE CAPACITY AT A TIME WHEN THE BIG GUYS ARE LOOKING FOR MORE PROTECTION SAYS CHARLES LARSEN MANAGING DIRECTOR IN CHARGE OF TRUST CO OF THE WEST'S SMALLSTOCK EFFORT MR LARSEN IS FINDING IN REINSURERS SOMETHING THAT'S SCARCE AMONG MANY OTHER PUBLICLY TRADED COMPANIES IT'S CALLED PRICING POWER AND HE BELIEVES IT WILL LIFT REINSURERS' EARNINGS OVER THE NEXT FEW YEARS REINSURANCE STOCKS ALREADY HAVE BEEN BID UP BUT INVESTORS THINK LONGTERM PLAYERS CAN STILL GET ON BOARD AND MAKE A BUCK PHOENIX RE IS ALREADY UP 63 SINCE YEAR END TRENWICK GROUP IS UP 13 NATIONAL RE IS UP 17 NAC RE IS ABOUT FLAT BECAUSE OF THE COMPANY'S HEAVY FOCUS ON CASUALTY REINSURANCE THOUGH SOME BULLS ARE ALSO PREDICTING THAT RATES FOR THIS TYPE OF INSURANCE WILL RISE TOO HOLDERS OF REINSURANCE STOCKS INCLUDE TIREKICKING RESEARCHINTENSIVE MONEY MANAGERS SUCH AS SAN FRANCISCO'S RCM CAPITAL MANAGEMENT CAPITAL GUARDIAN TRUST IN LOS ANGELES AND NEW YORK'S ATALANTA/SOSNOFF THE EARNINGSMOMENTUM GANG HASN'T CHASED THE STOCKS YET NO SURPRISE I/B/E/S SAYS 1993 ESTIMATES FOR ALL FOUR COMPANIES' PERSHARE EARNINGS ARE ABOUT UNCHANGED FROM THE STREET'S FORECASTS OF SIX MONTHS AGO IT DOESN'T BOTHER ME THAT THE STOCKS ARE UP WITHOUT THE EARNINGS SAYS ROBERT DALELIO SENIOR VICE PRESIDENT AT PUTNAM INVESTMENTS THE LAST THING YOU WANT TO LOOK AT IN INSURANCE STOCKS IS NEARTERM EARNINGS INSTEAD LOOK AT PRICING HE SAYS THIS IS ONE OF THESE INDUSTRIES WHERE BAD NEWS IS GOOD NEWS SAYS MR DALELIO WITH INVESTMENT PORTFOLIO RETURNS SLIPPING NEARLY ALL INSURERS WILL HAVE TO RAISE RATES TO PROTECT PROFITS BUT THE WELLKNOWN PRIMARY INSURERS CAN'T RAISE RATES AS EASILY AS REINSURERS THE NUMBER OF US REINSURERS HAS FALLEN TO BELOW 60 FROM 129 IN 1989 PUTNAM SAYS THUS THE SUPPLY OF REINSURANCE IS LIMITED AT A TIME WHEN DEMAND IS HEATING UP LAST YEAR LLOYD'S OF LONDON TOOK MASSIVE LOSSES FROM VARIOUS CATASTROPHES AND THE LONDON REINSURANCE MARKET CONTRACTED LEAVING BIG INSURERS WITH MORE RISK MOREOVER HURRICANES ANDREW AND INIKI AND BAD NORTHEASTERN STORMS WREAKED TOTAL DAMAGES OF ABOUT 22 BILLION LEAVING FEW PROPERTY INSURERS UNSCATHED WE ARE SEEING DEMAND FOR REINSURANCE INCREASE AS COMPANIES DISCOVER THEY ARE HIGHLY EXPOSED SAYS DOLORES BAMFORD INSURANCE ANALYST AT PUTNAM THAT HAS ULTIMATELY AFFECTED PRICING PARTICULARLY IN PROPERTY REINSURANCE WE ARE SEEING RATES UP 15 TO 40 ON THE JANUARY RENEWALS RATE INCREASES TRICKLE DOWN TO EARNINGS OVER SEVERAL QUARTERS THERE WILL BE NO INSTANT GRATIFICATION ON THE BOTTOM LINE ON EARNINGS REPORTED CAUTIONS PETER CHENEY CHIEF FINANCIAL OFFICER AT NATIONAL RE BUT THERE IS CLEARLY AN INCREASE IN DEMAND FOR PROPERTY AND CASUALTY REINSURANCE DAVID ANTHONY VICE PRESIDENT AT RESEARCH FIRM FOXPITT KELTON SAYS REINSURANCE STOCKS ARE PRETTY FAIRLY VALUED ON A SHORTTERM BASIS BUT OVER TWO YEARS THEY WILL GO HIGHER BECAUSE OF GROWING EARNINGS RESULTING FROM HIGHER RATES HIGHER PROPERTYREINSURANCE RATES ARE ONLY ONE LEG OF THE BULL CASE BY 1994 SOME ANALYSTS EXPECT RATES ON CASUALTY REINSURANCE TO START CLIMBING SAYS FOXPITT'S MR ANTHONY MY FEELING IS THAT CASUALTY RATES WON'T CHANGE UNTIL LATE 1993 OR EARLY 1994 BUT WITH EVERY NEW CATASTROPHE LOSS SUCH AS THE WORLD TRADE CENTER BOMBING IT HEIGHTENS THE PRESSURE SAYS JAMES BILLETT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TRENWICK ON THE CASUALTY SIDE THERE HAS BEEN NO INDICATION THAT DEMAND FOR REINSURANCE HAS PICKED UP OR THAT SUPPLY HAS SHRUNK BUT HISTORICALLY THE PROPERTY AND CASUALTY CYCLES TEND TO GO TOGETHER ONE THEORY IS THAT THE CASUALTY SIDE WILL TURN BECAUSE PRIMARY INSURERS HAVE SO MUCH RISK IN PROPERTY THAT CAN'T BE FULLY PROTECTED AT AN INEXPENSIVE PRICE ONE SIGN OF REINSURERS' PRICING POWER IS THAT MOST HAVE CEASED OR SLOWED WHAT'S KNOWN AS PRO RATA UNDERWRITING THIS FORM OF REINSURANCE IS PARTICULARLY RISKY PRO RATA CONTRACTS REQUIRE REINSURERS TO PAY A SET PERCENTAGE OF EVERY DOLLAR BIG INSURERS PAY FOR DAMAGES NOW THE REINSURERS ARE CAPPING PRO RATA RISKS OR ARE ONLY REINSURING FINITE SLICES OF THE TOTAL RISK ANOTHER BULLISH ELEMENT MANY REINSURERS HAVE RAISED CAPITAL THROUGH STOCK OR BOND OFFERINGS TO INCREASE THE CAPACITY OF THEIR BUSINESS AMONG THE REINSURANCE STOCKS MANY ANALYSTS NOW FAVOR FOUR SMALL TO MEDIUMSIZE COMPANIES THEY ARE NAC RE AT 41 THIS NASDAQ STOCK TRADES AT 18 TIMES ESTIMATED 1993 EARNINGS ABOUT 75 OF NAC RE'S BOOK OF BUSINESS IS CASUALTY MEDICAL MALPRACTICE AND GENERAL LIABILITY LINES WE TEND TO RESTRICT THE AMOUNT OF PROPERTY BUSINESS WE'RE WRITING BECAUSE OF THE PERCEPTION OF HOW VOLATILE IT CAN BE SAYS NAC RE SPOKESMAN PAUL MALVASIO WE HAVEN'T SEEN ANY TURN IN THE MARKET IN TERMS OF CASUALTY RATES HE ADDS NAC RE MIGHT BE ONE OF THE LONGERTERM PLAYS IN REINSURANCE AS INVESTORS MUST WAIT FOR CASUALTY RATES TO RISE ALSO THE COMPANY HAS SOME PRO RATA RISK WHICH IT HOPES TO TURN INTO CAPPED RISKS OR LIMITED LIABILITY BY YEAR END PUTNAM'S MS BAMFORD THINKS REINSURERS CAN TRADE AS HIGH AS THREE TIMES BOOK VALUE SHE ESTIMATES NAC RE'S BOOK VALUE AT 19 BY THE END OF 1993 UNDER HER SCENARIO THE STOCK COULD STILL APPRECIATE 39 NATIONAL RE ABOUT A THIRD OF THE STAMFORD CONNBASED REINSURER'S BUSINESS IS PROPERTY REINSURANCE TWOTHIRDS INVOLVES CASUALTY RISK ONLY 20 OF ITS BUSINESS HAS BEEN WRITTEN ON A PRO RATA BASIS NATIONAL RE IS THE ONLY DIRECT WRITER OF REINSURANCE AMONG THE FOUR COMPANIES MENTIONED WHICH SHOULD MEAN THE COMPANY HAS GREATER CONTROL OVER ITS RISK PROFILE SOME REINSURERS OPERATE THROUGH A BROKERED MARKET UNDERWRITING RISKS THROUGH INTERMEDIARIES MR CHENEY SAYS NET INVESTMENT INCOME COULD SHOW ANOTHER DECREASE THIS YEAR INDUSTRYWIDE BUT WHEN IT COMES TO THE FUNDAMENTALS OF HIS BUSINESS HE'S BULLISH THERE IS CLEARLY AN INCREASE IN DEMAND FOR REINSURANCE HE SAYS WE BELIEVE THE MARKET CYCLE TURN IS IN PLACE NOTE FOR THE BULLS MR CHENEY SAYS NATIONAL RE WOULD RATHER SHED BUSINESS THAN NOT GET A RATE INCREASE AT 34 5/8 THE BIG BOARD STOCK IS TRADING AROUND 16 TIMES ESTIMATED EARNINGS AND AT ABOUT 22 TIMES PUTNAM'S ESTIMATE OF YEAREND 1993 BOOK VALUE PHOENIX RE THIS COMPANY BASED IN NEW YORK IS THE SMALLEST OF THE FOUR IN TERMS OF STOCK MARKET SIZE BUT THE PUREST PLAY ON RISING RATES FOR PROPERTY REINSURANCE EFFECTIVE RATE INCREASES ARE UP ON AVERAGE WELL OVER 100 IN THE CATASTROPHE SEGMENT SAYS HARRY FONG ANALYST AT BROKERAGE FIRM CONNING & CO IN HARTFORD CONN AND THAT TYPE OF BUSINESS COULD MAKE UP ABOUT 70 OF PHOENIX'S TOTAL BOOK AT THE END OF THIS YEAR HE ADDS AT 25 5/8 THE NASDAQ STOCK TRADES AT 14 TIMES HIS 1993 PERSHARE EARNINGS ESTIMATE OF 180 FULLY DILUTED AND AT ONLY 18 TIMES HIS ESTIMATED 1993 BOOK VALUE MR FONG SAYS THE SHARES COULD RISE TO 40 AS EARNINGS EXPECTATIONS RISE TRENWICK GROUP A WIDELY PRAISED MEMBER OF THE GROUP MANAGEMENT AND DIRECTORS OWN ABOUT 20 AND HAVE RUN THE STAMFORDBASED COMPANY ACCORDINGLY WHEN THE REINSURANCE CYCLE WAS IN A SLUMP IN 19871990 TRENWICK BOUGHT BACK ABOUT A THIRD OF ITS STOCK OUTSTANDING OR ABOUT FOUR MILLION SHARES MORE THAN 90 OF TRENWICK'S BUSINESS INVOLVES CASUALTY REINSURANCE THE STOCK CLOSED AT 46 FRIDAY THEY HUSBANDED THEIR CAPITAL WELL AND DIDN'T PUT BAD BUSINESS ON THEIR BOOKS SAYS MR DALELIO TRENWICK'S BALANCE SHEET MANEUVERS AND BUSINESS TIMING RESULTED IN EARNINGS GROWTH AVERAGING ABOUT 20 OVER THE PAST FIVE YEARS NOW THAT THE RATE CYCLE IS TURNING TRENWICK IS ISSUING CONVERTIBLE DEBT AND TRYING TO LEVERAGE UP EARNINGS WE SEE THE BUSINESS PRETTY CYNICALLY SAYS MR BILLETT THERE ARE TIMES TO BE AGGRESSIVE AND WE THINK THAT TIME IS COMING UP THERE ARE TIMES TO BE DEFENSIVE AND THAT'S BEEN THE LAST FIVE YEARS MR DALELIO THINKS TRENWICK COULD EARN DOUBLE OR TRIPLE THE 1993 ESTIMATES OF 301 A SHARE WITHIN THE NEXT FEW YEARS INVESTORS MUST BE PATIENT HOWEVER AND WAIT FOR CASUALTY RATES TO RISE COULD THE STOCK BE 40 TWO MONTHS FROM NOW YES SAYS MR DALELIO COULD IT BE 100 TWO YEARS FROM NOW YEAH 9303220086 930322 MR CLINTON PLEASE CHECK THE LABEL BY ROBERT MOORE THE CLINTON ADMINISTRATION'S FOCUS ON THE DOMESTIC ECONOMY PROVIDES HOPE BUT FOR THE PRESIDENT'S ECONOMIC STRATEGY TO WORK HE WILL NEED TO PAY PARTICULAR ATTENTION TO THE NEEDS OF SMALL BUSINESS HISTORICALLY THE US ECONOMY'S GROWTH ENGINE COMPANIES OF FEWER THAN 500 EMPLOYEES MAKE UP 43 OF AMERICA'S GROSS NATIONAL PRODUCT IN THE LAST DECADE AT LEAST 635 OF ALL NEW JOBS IN AMERICA WERE CREATED BY SMALL BUSINESS IN FACT THE BEST PRESIDENTIAL POLICY FOR HELPING SMALL BUSINESS COMPETE IN THE INTERNATIONAL ECONOMY IS HANDSOFF CURRENT FEDERAL POLICIES ARE FREQUENTLY CONTRADICTORY COUNTERPRODUCTIVE AND BEFUDDLING TO SCORES OF SMALLBUSINESS OWNERS ONE GOOD EXAMPLE INVOLVES THE RULES GOVERNING THE USE OF THE MADE IN THE USA LABEL AS THE GLOBAL ECONOMY HAS BECOME MORE COMPETITIVE AMERICAN MANUFACTURERS HAVE FOUND THE LABEL A VALUABLE MARKETING TOOL IN HELPING DIFFERENTIATE THEIR PRODUCTS FROM FOREIGNMADE GOODS RESEARCH SHOWS THAT AMERICAN CONSUMERS TEND TO PREFER PURCHASING AMERICANMADE GOODS OVER FOREIGN PRODUCTS WHEN ALL ELSE PRICE QUALITY DESIGN ETC IS CONSIDERED EQUAL FURTHERMORE THE LABEL ALLOWS EMPLOYERS TO INSTILL PRIDE IN EMPLOYEES WHO PRODUCE GOODS TO BE SOLD HERE AND AROUND THE WORLD UNFORTUNATELY SMALL BUSINESS HAS AN ENEMY HERE AND IT IS OUR OWN GOVERNMENT ACCORDING TO US FEDERAL TRADE COMMISSION REGULATIONS IT IS ILLEGAL TO LABEL A PRODUCT MADE IN THE USA UNLESS 100 OF THE CONTENTS IN THE FINAL PRODUCT ARE PRODUCED ENTIRELY IN THE US CLEARLY THIS IS A DIFFICULT REQUIREMENT TO MEET IN TODAY'S GLOBAL ECONOMY MY COMPANY INFRARED RESEARCH MANUFACTURES AND MARKETS ELECTRONIC REMOTECONTROL DEVICES FOR TVS COMPACTDISK PLAYERS AND VCRS WE BUY ALL OUR COMPONENTS FROM USBASED SUPPLIERS AND MANUFACTURE OUR PRODUCTS IN THE MIDWEST NEVERTHELESS THE FTC FORBIDS ME FROM CLAIMING MY PRODUCT IS MADE IN THE USA BECAUSE THE COMPONENTS SOLD TO ME BY MY AMERICAN SUPPLIERS IN CERTAIN CASES ORIGINATE IN FOREIGN COUNTRIES SIMILARLY A COMPONENT THAT IS MADE FOR EXAMPLE IN TUCSON ARIZ IS FORBIDDEN THE USA LABEL IF ITS FINAL PLASTIC ENCLOSURE IS PUT ON IN KOREA OR TAIWAN IT GETS MORE CURIOUS WHEN WE SHIP THESE VERY SAME PRODUCTS INTERNATIONALLY WE'RE REQUIRED BY NONAMERICAN CUSTOMS AUTHORITIES AROUND THE WORLD TO STAMP THEM YOU GUESSED IT MADE IN THE USA IN SHORT WE ARE RECOGNIZED IN EVERY NATION AS AN AMERICAN MANUFACTURER EVERY NATION EXCEPT THE US THERE IS SOMETHING NOT QUITE FAIR ABOUT THIS COMPARED WITH INFRARED'S LARGEST COMPETITOR A COMPANY THAT BUILDS THE BULK OF ITS PRODUCT IN CHINA WE SPEND MORE MONEY ON LABOR PRECISELY BECAUSE IT IS DOMESTIC THIS IS A COMPETITIVE DISADVANTAGE WE ARE MORE THAN HAPPY TO BEAR WE WOULD SIMPLY LIKE SOME RECOGNITION FOR IT SUCH ABSURD LABEL RESTRICTIONS ARE A GOOD EXAMPLE OF THE REGULATIONS THAT FACE SMALLBUSINESS OWNERS REGULATIONS THAT ARE COUNTERPRODUCTIVE IN TODAY'S GLOBAL ECONOMY AND THAT THREATEN THE STATED PRIORITY OF THE NEW ADMINISTRATION PRODUCING JOBS AS A SMALLBUSINESS OWNER I HOPE THAT MR CLINTON TAKES A QUICK SCISSORS TO SOME OF THE RED TAPE PREVENTING AMERICAN PRODUCTS FROM PROUDLY DISPLAYING THE MADE IN THE USA LABEL AND IN SO DOING HELPS TO CREATE THE JOBS NEEDED TO REVITALIZE THE US ECONOMY MR MOORE IS PRESIDENT OF INFRARED RESEARCH IN EVANSTON ILL 9303220085 930322 TIME WARNER UNIT PLANS PUSH INTO ASIA FEATURING CARTOONS HONG KONG WARNER BROS INC IS STAGING A MAJOR PUSH INTO ASIA WITH A STARSTUDDED CAST OF CARTOON CHARACTERS THAT INCLUDES BUGS BUNNY SYLVESTER THE CAT AND TWEETY BIRD THE COMPANY'S CONSUMERPRODUCTS DIVISION REACHED LICENSING AGREEMENTS WITH BOSS CONTROL LTD A HONG KONG WATCH MANUFACTURER AND POST PUBLISHING CO THAILAND'S LARGEST PUBLICLY LISTED PUBLISHER UNDER THE DEALS THE TWO COMPANIES WILL MAKE PRODUCTS FEATURING WARNER BROS CARTOON CHARACTERS THE AGREEMENTS REPRESENT THE FIRST IN A SERIES CURRENTLY UNDER NEGOTIATION SAYS JOHN MOORE VICE PRESIDENT OF WARNER BROS' ASIANPACIFIC CONSUMERPRODUCTS DIVISION PLANNED PROJECTS INCLUDE ESTABLISHING WARNER BROS BRAND SHOPS IN THE REGION'S MAJOR DEPARTMENT STORES AND LICENSING MORE RETAIL AND MERCHANDISING PARTNERS WHILE RECOGNIZING DIFFERENCES BETWEEN MARKETS MR MOORE HOPES TO EXPLOIT SIMILARITIES WE'RE A BRAND THAT CAN TRAVEL HE SAYS WARNER BROS' PLANS ARE JUST A SMALL PART OF PARENT COMPANY TIME WARNER INC'S STRATEGY FOR ASIA MR MOORE SAYS TIME WARNER IS A MAJOR PLAYER IN THE REGION'S TELEVISION VIDEO MUSIC FILM AND PUBLISHING MARKETS AND IN 1991 OPENED A WARNER BROS WORLD THEME PARK AND FILM STUDIOS IN AUSTRALIA THE FIRST WARNER BROS BRAND SHOPS WILL OPEN IN LANE CRAWFORD LTD'S FIVE HONG KONG DEPARTMENT STORES IN EARLY APRIL AND WILL FEATURE WARNER BROS' CLASSIC CHARACTERS KNOWN AS LOONEY TUNES IN THE US PRODUCTS RANGE FROM STATIONERY COFFEE MUGS AND STUFFED ANIMALS TO BASEBALL CAPS AND APPAREL THE COMPANY EXPECTS TO ANNOUNCE ADDITIONAL PARTNERS IN THAILAND WITHIN THE NEXT TWO MONTHS INCLUDING MERCHANDISING AND RETAIL LICENSEES WARNER BROS NOW HAS MORE THAN 200 LICENSEES IN ASIA WARNER BROS ALSO HOPES TO EXPAND IN ASIA THROUGH MEDIA CHANNELS WE LOOK FOR ENTERTAINMENT AND MEDIA LINKS IN OUR STRATEGIC PARTNERS MR MOORE SAYS ENTERTAINMENT MARKETING INC WARNER BROS' HONG KONG LICENSING AGENT AND A COORDINATOR OF THE LANE CRAWFORD PROMOTION IS AN EXAMPLE OF THE KIND OF COMPANY WITH WHICH WARNER BROS IS SEEKING TO ESTABLISH TIES 9303220084 930322 LEISURE & ARTS THE GALLERY THE GREAT VENETIANS BY PAUL LEVY PARIS SPRING HAS COME AND THE CITY IS FILLED WITH LOVERS OF ART SO SERIOUSLY DO THE FRENCH TAKE THEIR CULTURE THAT IT IS PRESUMED BY THE NATIVES THAT ANY VISITOR FROM ABROAD HAS COME EITHER TO SEE THE MATISSE EXHIBITION NOW CAUSING HIDEOUS CONGESTION AT THE GEORGES POMPIDOU CENTER OR THE TITIAN SHOW AT THE GRAND PALAIS FOR THOSE OF US LUCKY ENOUGH TO HAVE GOT INTO THESE BEFORE THE CROWD AND THUS ACTUALLY TO HAVE SEEN THE PICTURES BOTH THESE EXHIBITIONS ARE ALMOST LIFECHANGING EVENTS ORGANIZED BY MICHEL LACLOTTE DIRECTOR OF THE LOUVRE WITH THE AID OF A COMMITTEE OF INTERNATIONALLY KNOWN SCHOLARS AND SPECIALISTS THE CENTURY OF TITIAN THE GOLDEN AGE OF VENETIAN PAINTING UP UNTIL JUNE 14 IS TIMED TO TAKE ADVANTAGE OF THE LOUVRE'S HUGE REMODELING PROJECT AND THE CONSEQUENT REHANGING OF ITS COLLECTION PICTURES HAVE COME FROM MORE THAN 100 DIFFERENT PLACES THE PRINCIPAL PUBLIC COLLECTIONS AND PROVINCIAL GALLERIES OF EUROPE AND AMERICA 10 DIFFERENT CHURCHES IN VENICE PRIVATE COLLECTIONS INCLUDING THAT OF QUEEN ELIZABETH II AND THE THYSSENBORNEMISZA COLLECTION AND EVEN FROM A CLUTCH OF ENGLISH COUNTRY HOUSES BUT IT IS THE LOUVRE PICTURES THAT ARE THE BACKBONE OF THIS MIGHTY CULTURAL MILESTONE EVERYBODY SPEAKS OF THE SHOW AS THE TITIAN AND INDEED OF THE NEARLY 300 WORKS A THIRD ARE ATTRIBUTED TO TITIAN AND INCLUDE SUCH RARITIES AS THE FLAYING OF MARSYAS FROM KROMERIZ IN THE CZECH REPUBLIC AS WELL AS THE GREAT FLORA FROM FLORENCE DANAE FROM THE PRADO IN MADRID THE EDUCATION OF CUPID FROM THE BORGHESE GALLERY IN ROME VENUS AND CUPID FROM THE METROPOLITAN MUSEUM OF ART IN NEW YORK AND THE ANNUNCIATION FROM THE CHURCH OF THE HOLY SAVIOR IN VENICE HOWEVER THIS AMBITIOUS SHOW REALLY HAS TWO HEROES IT EVOKES SAY THE ORGANIZERS THE MOST GLORIOUS CENTURY OF VENETIAN PAINTING BY PUTTING THE ACCENT ON THE WORK OF GIORGIONE C 14771510 AND ON THAT OF TITIAN C 14901576 AND BY SHOWING THE PROFOUND INFLUENCE EXERCISED BY THE TWO ARTISTS ON THEIR CONTEMPORARIES BOTH FROM VENICE AND FROM TERRA FIRMA' THE ITALIAN MAINLAND OTHER PAINTERS REPRESENTED HERE INCLUDE GIOVANNI BELLINI SEBASTIANO DEL PIOMBO DOSSO DOSSI LORENZO LOTTO BASSANO TINTORETTO AND VERONESE THE GREAT REVELATION OF THIS SHOW IS UNDOUBTEDLY THE ROOM CONTAINING 18 GIORGIONES THOUGH I HAVE READ TWICE MR LACLOTTE'S INTRODUCTION AND BOTH OF ALESSANDRO BALLARIN'S ESSAYS ON GIORGIONE IN THE GIGANTESQUE NINEPOUND CATALOG I SIMPLY CANNOT DISCOVER HOW MANY GIORGIONES MR BALLARIN ADMITS TO THE MUCHDISPUTED CANON THE REASONS FOR THE INCLUSION OF THESE UTTERLY ASTONISHING PICTURES OR THE EXCLUSION FROM THIS EXHIBITION IF NOT FROM THE CANON OF SOME OTHERS USUALLY ATTRIBUTED TO GIORGIONE THIS IS IMPORTANT MORE THAN AN ARTHISTORICAL QUIBBLE NOT ONLY BECAUSE THIS IS THE MOST MOVING GROUP OF PICTURES I CAN REMEMBER SEEING BUT BECAUSE THE SELECTION POWERFULLY IMPLIES THE PERSONALITY OF THE PERSON WHO PAINTED THEM OF THE 18 13 ARE HEADANDSHOULDERS PORTRAITS OF MEN MOSTLY YOUNG MEN NONE OF THEM PRETTY BUT ALL WITH A TROUBLED SORT OF BEAUTY THEY ARE WISTFUL SOULFUL THOUGHTFUL OR SEVERE EVEN WHEN AS IN THE CONCERT FROM A PRIVATE COLLECTION IN MILAN THE SURROUNDING FIGURES ARE JOLLY THE PRINCIPAL SUBJECT DOES NOT SEEM TO BE HAVING A GOOD TIME ABOVE ALL THEY ARE INDIVIDUALS REAL PEOPLE WHOM YOU CAN IMAGINE MEETING EXCEPT FOR THE EXTRAORDINARILY BEAUTIFUL MADONNA OF THE HOLY FAMILY FROM THE NATIONAL GALLERY IN WASHINGTON DC AND AN ALMOST BLANKFACED ONE FROM THE HERMITAGE IN ST PETERSBURG THE ONLY LADIES ARE THE PLUMP LAURA FROM THE KUNSTHISTORISCHES MUSEUM IN VIENNA AND THE VENICE ACADEMIA'S OLD WOMAN THIS ROOM MAKES A STATEMENT THIS SHOW IS HUGE YOU NEED A LOT OF TIME TO SEE IT PROPERLY AND TO COPE WITH THE UNIVERSAL FRENCH MUSEUM CURATORS' BAD HABIT OF MAKING THE TYPEFACE OF THE CAPTIONS SO SMALL THAT YOU NEED TO LOOK AT THE CAPTION FROM ONE POSITION AND THEN WALK ACROSS THE ROOM TO SEE THE PICTURE ITSELF IF YOU ARE NOT EXHAUSTED BY THIS YOU CAN STROLL DOWN THE CHAMPS ELYSEES AND THROUGH THE TUILERIES GARDENS TO SEE THE NEW LOUVRE IM PEI'S GLASSPYRAMID ENTRANCE TO THE LOUVRE HAS SETTLED DOWN NICELY AND NOW NO LONGER OUTRAGES PARISIANS FOR WHOM IT HAS BECOME JUST ANOTHER IF ODD PART OF THE LANDSCAPE DURING ITS CONSTRUCTION THE MEDIEVAL FOUNDATIONS OF THE LOUVRE PALACE WERE UNCOVERED AS PART OF PRESIDENT FRANCOIS MITTERRAND'S GRANDS PROJETS TO MAKE SURE THAT WHATEVER HIS POLITICAL FUTURE HE WILL HAVE LEFT AN INDELIBLE MARK ON FRENCH CULTURE THE MEDIEVAL PART OF THE LOUVRE WAS LEFT EXPOSED SO THAT THE BUILDING ITSELF NOW FORMS PART OF THE PERMANENT EXHIBITIONS AND WONDERFUL IT IS TOO YOU CAN WANDER AROUND THE DUNGEON LOOK AT THREEDIMENSIONAL PLANS OF THE LOUVRE AND THE TUILERIES PALACE AND GARDENS THROUGH SEVERAL EPOCHS AND RECREATE CENTURIES OF FRENCH HISTORY IN YOUR OWN MIND'S EYE IT'S ALL PART OF THE PLANS FOR THE GRAND LOUVRE WHEN ONE DAY YOU WILL BE ABLE TO WALK THE LENGTH AND WIDTH OF THE BUILDING WHICH WILL THEN BE THE LARGEST MUSEUM IN THE WORLD IN THE MEANTIME THE REMODELING ADDS NEW TERRORS TO THE FAMOUS EXPERIENCE OF BEING LOST IN THE LOUVRE BECAUSE DOZENS OF ROOMS ARE BEING CONVERTED IT IS IMPOSSIBLE TO MOVE STRAIGHTFORWARDLY FROM A TO B EVEN WHEN A AND B ARE ON THE SAME FLOOR AND ON MY WAY TO THE NEW ROOMS THAT HOUSE THE CENTRAL PART OF THE COLLECTION OF FRENCH PAINTING I REPEATEDLY FOUND MYSELF RETURNED TO THE DUNGEON AND MEDIEVAL FOUNDATIONS I HAD FAILED TO GRASP THE ESSENTIAL TRAFFIC PLAN OF THE NEW LOUVRE ONCE THERE THE NEW ROOMS ARE QUIETLY IMPRESSIVE THEY LET IN AS MUCH DAYLIGHT AS POSSIBLE AND FEATURE UNOBTRUSIVE LIGHTING AND COLOR SCHEMES WHEN YOU GET TO THE END OF THEM THOUGH YOU REALIZE THAT THERE HAVE BEEN NUMEROUS PRIVATE COLLECTIONS DONATED TO THE STATE ON THE CONDITION THAT THEY ARE NOT BROKEN UP SO SOME OF THE BEST DELACROIX AND COROTS ARE NOT IN THE DELACROIX AND COROT ROOMS BUT DOTTED ABOUT THE SECOND FLOOR IN OBEDIENCE TO THE WISHES OF THE LOUVRE'S BENEFACTORS BUT IN DEFIANCE OF THE FRENCH LOVE OF LOGIC 9303220083 930322 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ADELPHIA COMMUNICATIONS CORP AN OFFERING OF 10 MILLION CLASS A COMMON SHARES VIA SALOMON BROTHERS INC CROSSCOMM CORP AN OFFERING OF 1500000 COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE COWEN & CO AND WESSELS ARNOLD & HENDERSON EDUCATION ALTERNATIVES INC AN OFFERING OF 1262800 COMMON SHARES BY THE COMPANY AND UP TO 162000 COMMON SHARES OFFERED BY CERTAIN UNAFFILIATED SELLING SHAREHOLDERS VIA PIPER JAFFRAY INC AND DAIN BOSWORTH INC FIRST AMERICAN CORP A SHELF COVERING 100 MILLION OF SUBORDINATED DEBT SECURITIES VIA MERRILL LYNCH & CO MATRITECH INC AN OFFERING OF 2500000 COMMON SHARES MATTHEWS INTERNATIONAL CORP AN INITIAL OFFERING OF 18 MILLION CLASS A COMMON SHARES VIA PARKER/HUNTER INC AND THE CHICAGO DEARBORN CO SECTY FIRST CORP AN OFFERING OF 85 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES VIA MCDONALD & COMPANY SECURITIES INC SIZELER PROPERTY INVESTORS INC AN OFFERING OF UP TO FOUR MILLION SHARES OF THE REAL ESTATE INVESTMENT TRUST'S COMMON STOCK AND BETWEEN 25 MILLION AND 50 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES VIA NATIONAL WESTINISTER BANK PLC XEROX CORP AN OFFERING OF SIX MILLION XEROX COMMON SHARES VIA GOLDMAN SACHS & CO LAZARD FRERES & CO AND MERRILL LYNCH 9303220082 930322 BUSINESS BRIEFS WILMINGTON TRUST CORP AGREED DEFINITIVELY TO PURCHASE FREEDOM VALLEY BANK IN SOUTHEASTERN PENNSYLVANIA FOR 119 MILLION MID AM INC COMPLETED ITS ACQUISITION OF APOLLO SAVINGS & LOAN CO IN A STOCK SWAP VALUED AT ABOUT 15 MILLION CITIZENS BANKING CORP AGREED TO ACQUIRE ROYAL BANK GROUP INC FOR 225 MILLION FRAME TECHNOLOGY CORP CALLED OFF A PROPOSED MERGER WITH VERITY INC AND INSTEAD WILL INVEST 2 MILLION IN VERITY LEWIS GALOOB TOYS INC SIGNED A LETTER OF INTENT TO ACQUIRE CLOSELY HELD DIVERSIFIED SPECIALISTS INC TERMS WEREN'T DISCLOSED ARMANINO FOODS OF DISTINCTION INC TERMINATED ITS PLANNED PURCHASE OF THE ASSETS OF INTERNATIONAL ETHNIC FOODS INC BALL CORP COMPLETED ITS ACQUISITION OF HEEKIN CAN INC IN A STOCK SWAP VALUED AT 883 MILLION L&F PRODUCTS A UNIT OF EASTMAN KODAK CO REDESIGNED ITS BUSINESS STRUCTURE TO FOCUS ON GLOBAL GROWTH IT NOW WILL HAVE FOUR GEOGRAPHIC REGIONS COORDINATED BY A WORLDWIDE BUSINESS UNIT 9303220081 930322 TECHNOLOGY INFORMATION AGE NINTENDO PLANS SATELLITE SERVICE FOR VIDEO GAMES IN JAPAN IN '94 BY DAVID P HAMILTON TOKYO VIDEOGAME GIANT NINTENDO CO OFFERED ITS FANS A GLIMPSE OF THE FUTURE ANNOUNCING IT WILL BRING THE WORLD'S FIRST SATELLITE VIDEOGAME SERVICE TO JAPANESE HOUSEHOLDS EARLY NEXT YEAR BY APRIL 1994 NINTENDO SAID IT WILL START BEAMING SIMPLE GAMES DIRECTLY INTO USERS' HOMES VIA A RECENTLY ACQUIRED SATELLITE CHANNEL THAT MOVES THE COMPANY ONE STEP CLOSER TO INTERACTIVE GAME PLAYING IN WHICH USERS CAN CALL UP GAMES FROM A CENTRAL LIBRARY VIA SATELLITE OR PHONE LINES AND PLAY AGAINST OTHER LIVE OPPONENTS OVER A NETWORK FOR NOW HOWEVER IT'S PROBABLY BEST NOT TO LET THE KIDS GET TOO EXCITED THE INITIAL SATELLITE OFFERINGS DESCRIBED BY THE COMPANY ARE RATHER TAME COMPARED WITH SUPER MARIO BROTHERS AND DRAGONQUEST THE GAMES THAT HAVE MADE NINTENDO ONE OF THE MOST PROFITABLE COMPANIES IN JAPAN WHAT'S MORE THE COMPANY CONCEDED THAT IT DOESN'T REALLY KNOW HOW FAR IT WILL PUSH DEVELOPMENT OF ITS NEW SATELLITE SYSTEM WHICH MAY BE SUPERSEDED BY A PHONEBASED GAME NETWORK THE COMPANY PLANS TO INTRODUCE WITHIN TWO YEARS INTERACTIVE GAME NETWORKS MAY BECOME A GOLD MINE BUT THEY ARE STILL IN THEIR INFANCY IN THE US SIERRA NETWORK A VENTURE OF PUBLICLY HELD SIERRA ONLINE INC OAKHURST CALIF STARTED UP IN JUNE AND HAS THOUSANDS OF SUBSCRIBERS AT 1295 A MONTH FOR 30 HOURS OF EVENING GAME PLAYING THE NUMBER OF NEW SUBSCRIBERS IS DOUBLING QUARTERLY BUT THE BUSINESS ISN'T PROFITABLE YET SIERRA SAYS SIERRA NETWORK SUBSCRIBERS WITH PCS HOOKED UP TO THEIR PHONE LINES CAN PLAY CARD GAMES SUCH AS POKER AND BRIDGE FANTASY ROLEPLAYING GAMES AND ACTION GAMES SUCH AS RED BARON IN WHICH PLAYERS PILOT ONSCREEN BIPLANES AND TRY TO SHOOT EACH OTHER DOWN SEGA OF AMERICA A UNIT OF NINTENDO'S ARCHRIVAL SEGA ENTERPRISES LTD IS WORKING WITH INTERACTIVE NETWORKS INC A SMALL PUBLICLY HELD MOUNTAIN VIEW CALIF COMPANY THAT LETS USERS PLAY GAMES BASED ON TELEVISION SHOWS THEY ARE WATCHING INTERACTIVE WHICH HAS SYSTEMS RUNNING IN SAN FRANCISCO AND SACRAMENTO SELLS 199 CONTROL UNITS PROVIDING WIRELESS FM RADIO BAND CONNECTIONS TO PLAY GAMES RATHER THAN VIDEO GAMES INTERACTIVE SUBSCRIBERS WATCH TV SHOWS IN SPORTS SHOWS THEY GUESS WHAT ACTION AN ATHLETE WILL TAKEPASS OR RUN ON WHEEL OF FORTUNE THEY GUESS THE ANSWERS THEY CAN WIN PRIZES IF THEY BEAT THE OTHER SUBSCRIBERS VARIOUS ONLINE COMPUTER NETWORKS HAVE TRIVIA CONTESTS AND OTHER WORD GAMES RUNNING I THINK THIS IS JUST ONE EXPERIMENT NINTENDO IS TRYING SAID MASAMI FUJINO AN ANALYST WITH SBCI SECURITIES ASIA LTD IN TERMS OF EARNINGS I'M NOT EXPECTING ANY CONTRIBUTION FROM THIS INVESTMENT NINTENDO'S SATELLITE ODYSSEY BEGAN IN NOVEMBER WHEN IT WAS APPROACHED BY SATELLITE DIGITAL AUDIO BROADCASTING CO A BROADCASTING FIRM WITH A 46 MILLION DEBT THAT WANTED TO TALK ABOUT A PARTNERSHIP ON FRIDAY NINTENDO SAID IT WILL BUY A 195 STAKE IN THE COMPANY FOR 782 MILLION YEN 67 MILLION LESS THAN ONE PERCENT OF THE 1662 BILLION YEN PRETAX PROFIT THE COMPANY EXPECTS TO POST FOR THE YEAR ENDING MARCH 31 NINTENDO AND SATELLITE DIGITAL AUDIO NOW INTEND TO CODEVELOP A SPECIAL ADAPTOR AND DECODER SET PRICED AT 9800 YEN 84 THAT WILL ALLOW NINTENDO GAME COMPUTERS TO TAP INTO THE SATELLITE SIGNAL THE QUESTION OF JUST WHAT GAMES THE USER WILL GET HOWEVER IS STILL A BIT TRICKY SO FAR NINTENDO IS ABLE TO OUTLINE ONLY A HANDFUL OF POSSIBLE SATELLITE OFFERINGS THE FIRST WHICH NINTENDO CALLS A GAME BATTLE SERVICE WOULD ESSENTIALLY BE A NATIONWIDE GAME TOURNAMENT IN WHICH USERS COMPETE INDIVIDUALLY TO GET THE BEST SCORE SATELLITE SIGNALS WOULD BE USED TO ACTIVATE USERS' MACHINES AT THE BEGINNING OF THE TOURNAMENT AND THEN TO SHUT THEM OFF AT THE END THE SYSTEM MIGHT STILL HAVE A FEW BUGS HOWEVER A COMPANY SPOKESMAN SAYS GAME PLAYERS WOULD HAVE TO TAKE PHOTOGRAPHS OF THEIR SCREENS AND BRING THEM TO A NINTENDO DEALER IN ORDER TO CLAIM THEIR PRIZES THE SECOND JARS WITH THE COMPANY'S IMAGE BECAUSE IT SOUNDS WELL UNCOOL A QUIZ GAME IN WHICH THE SATELLITE WILL BEAM DOWN QUESTIONS TO USERS' GAME COMPUTERS ANOTHER CATCH THE TRIVIA QUESTIONS WILL BE IN ENGLISH QUITE A STRETCH FOR JAPANESE KIDS AS THE COMPANY'S NEWS RELEASE STATES YOU CAN ENJOY A HEARINGGAME' AT THE SAME TIME YOU FAMILIARIZE YOURSELF WITH A FOREIGN LANGUAGE NINTENDO SAYS IT MIGHT ALSO USE ITS SATELLITE TO OFFER USERS ONLINE HINTS FOR SOLVING COMPLICATED GAME PUZZLES A SERVICE IT NOW PROVIDES THROUGH TRADE MAGAZINES DEALERS AND CUSTOMER SERVICE CENTERS A NINTENDO SPOKESMAN SAID THE MAIN GOAL OF THE SATELLITE VENTURE IS TO GIVE THE COMPANY PRACTICE OPERATING A SATELLITE SYSTEM KNOWLEDGE THAT WOULD COME IN HANDY IF IT DECIDES TO EXTEND ITS OPERATIONS OUTSIDE JAPAN BUT ANALYSTS WERE GENERALLY SKEPTICAL THAT THE VENTURE WILL AMOUNT TO MUCH SUGGESTING THAT IT IS LARGELY A DISTRACTION FROM NINTENDO'S FAILURE SO FAR TO BRING OUT A GAME PLAYER BASED ON A CDROM DISK WHICH IS A READONLY COMPACT DISK THAT HOLDS A HUGE AMOUNT OF TEXT AND GRAPHIC DATA MAKING IT IDEAL FOR INTERACTIVE VIDEO GAMES ARCHRIVAL SEGA ENTERPRISES CAME OUT WITH A CDROM MACHINE IN DECEMBER 1991 9303220080 930322 BUSINESS BRIEF CABLEVISION SYSTEMS CORP COMPANY REPORTS ITS LOSS NARROWED IN FOURTH QUARTER CABLEVISION SYSTEMS CORP WOODBURY NY REPORTED A NARROWER FOURTHQUARTER LOSS PARTLY REFLECTING STRONGER REVENUE NET LOSS FOR THE QUARTER WAS 659 MILLION OR 293 A SHARE VS 695 MILLION OR 309 A SHARE FOR THE 1991 QUARTER OPERATING PROFIT BEFORE DEPRECIATION AND AMORTIZATION ROSE 13 TO 664 MILLION FROM 589 MILLION REVENUE ROSE 23 TO 1575 MILLION FROM 1279 MILLION THE CABLE COMPANY'S 1991 RESULTS DO NOT INCLUDE CONSOLIDATED OPERATIONS OF ITS AR CABLE UNIT WHILE THE 1992 RESULTS INCLUDE OPERATIONS OF CABLEVISION OF NEW YORK CITY AS OF JULY 10 WHEN IT BECAME A WHOLLY OWNED UNIT OF CABLEVISION CABLEVISION SAID IT ADDED 6 OR ABOUT 70100 MORE SUBSCRIBERS IN 1992 FROM THE PREVIOUS YEAR 9303220079 930322 BUSINESS BRIEF PETRIE STORES CORP NET SOARED 60 IN 4TH PERIOD ON A 10 INCREASE IN SALES PETRIE STORES CORP SECAUCUS NJ SAID EARNINGS IN THE FOURTH QUARTER SURGED 60 AS RESULT OF HIGHER SALES BROUGHT ON BY HEAVY PROMOTIONS THE WOMEN'S SPECIALTY APPAREL CHAIN SAID NET INCOME FOR THE QUARTER ENDED JAN 30 WAS 108 MILLION OR 23 CENTS A SHARE COMPARED WITH 68 MILLION OR 14 CENTS A SHARE A YEAR EARLIER SALES JUMPED 10 TO 4282 MILLION FROM 3878 MILLION EARNINGS FOR THE YEAR HOWEVER FELL 72 TO 148 MILLION OR 32 CENTS A SHARE FROM 16 MILLION OR 34 CENTS A SHARE A YEAR EARLIER RESULTS FOR THE FULL YEAR INCLUDE THE EFFECT OF A CHARGE OF ABOUT FOUR CENTS A SHARE RELATED TO THE GRANTING OF STOCK OPTIONS UNDER THE COMPANY'S STOCK OPTION PLAN IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY PETRIE SHARES ROSE 25 CENTS TO CLOSE AT 26625 9303220078 930322 REVIEW & OUTLOOK EDITORIAL JUSTICE WHITE'S LIBERALISM OH HOW THE DEFINITION OF A LIBERAL HAS CHANGED SINCE JOHN KENNEDY'S TIME JUSTICE BYRON WHITE WHO ANNOUNCED HIS RETIREMENT FRIDAY IS BEING DESCRIBED AS A CONSERVATIVE APPOINTED BY JFK 31 YEARS AGO JUSTICE WHITE TOOK THE BENCH AT A TIME WHEN A LIBERAL JURIST COULD STILL BELIEVE THAT HIS JOB WAS TO APPLY THE LAW NOT WRITE THE LAW THE CLEAREST REFLECTION OF THIS FORMER LIBERAL STYLE OF JURISPRUDENCE CAN BE FOUND IN JUSTICE WHITE'S DISSENTING OPINIONS IN TWO OF THE MOST FAMOUS CASES HEARD DURING HIS TENURE ROE V WADE AND MIRANDA V ARIZONA IN ROE THE 1973 ABORTION DECISION THAT FOUND A RIGHT TO PRIVACY IN THE CONSTITUTION HE WROTE I FIND NOTHING IN THE LANGUAGE OR HISTORY OF THE CONSTITUTION TO SUPPORT THE COURT'S JUDGMENT THE COURT SIMPLY FASHIONS AND ANNOUNCES A NEW CONSTITUTIONAL RIGHT FOR PREGNANT MOTHERS DISSENTING FROM THE 1966 MIRANDA DECISION WHICH REQUIRED POLICE TO WARN SUSPECTS THAT THEY COULD REMAIN SILENT AND HAVE A LAWYER PRESENT HE SAID THE COURT HAD DONE NOTHING LESS THAN MAKE NEW LAW AND NEW PUBLIC POLICY HIS VIEW OF THE LIMITED ROLE OF THE COURT IS ALSO SEEN IN THE MAJORITY OPINION HE WROTE FOR BOWERS V HARDWICK THE 1986 DECISION THAT UPHELD A GEORGIA SODOMY LAW AND REJECTED THE ARGUMENT THAT THE CONSTITUTION FORBIDS STATES FROM PROSECUTING CONSENTING ADULTS FOR HOMOSEXUAL ACTS HE CALLED THAT ARGUMENT AT BEST FACETIOUS THE COURT HE WROTE COMES NEAREST TO ILLEGITIMACY WHEN IT DEALS WITH JUDGEMADE CONSTITUTIONAL LAW HAVING LITTLE OR NO COGNIZABLE ROOTS IN THE LANGUAGE OR DESIGN OF THE CONSTITUTION THERE ARE OTHER EXAMPLES OF JUSTICE WHITE'S OLDFASHIONED LIBERAL JURISPRUDENCE AN ARDENT SUPPORTER OF CIVIL RIGHTS HE NEVERTHELESS OPPOSED THE BROAD USE OF QUOTAS AND AFFIRMATIVEACTION REMEDIES FOR PAST DISCRIMINATION THOUGH HE DOESN'T REJECT THEM ALTOGETHER HE HAS TAKEN A NARROW VIEW OF THE FIRST AMENDMENT VOTING AGAINST THE COURT'S DECISION LAST TERM BARRING PRAYER AT A PUBLIC SCHOOL COMMENCEMENT AND AGAINST ITS 1989 DECISION PROTECTING FLAGBURNING A LAWANDORDER JUDGE HE OFTEN VOTED AGAINST EXPANDING THE RIGHTS OF CRIMINALS AT SOCIETY'S EXPENSE WRITING THE MAJORITY OPINION IN US V LEON WHICH PERMITTED PROSECUTORS TO USE EVIDENCE GATHERED WITH A DEFECTIVE SEARCH WARRANT AND VOTING TO RESTRICT STATE PRISONERS' ACCESS TO FEDERAL COURTS THROUGH WRITS OF HABEAS CORPUS WHAT ACCOUNTS FOR THE CHANGE AMONG LIBERAL LEGALTHINKERS IN LARGE PART THE NEW EMPHASIS ON ACTIVIST JUDGING REFLECTS THE FACT THAT LEGISLATURES WHICH REFLECT PUBLIC ATTITUDES TOWARD CRIME AND THE LIKE OFTEN CHANGE THE US SYSTEM AT A SLOW PACE RADICAL LIBERALS WANTED TO FORCE LARGE CHANGES IN THE STRUCTURE OF AMERICAN LIFE AND THEY WANTED THEM FAST THROUGH JUDICIAL APPOINTMENTS LAWSUITS AND MUCH MORAL INTIMIDATION OF LAWSCHOOL DEANS TO APPOINT THEM TO FACULTIES THEY GOT MUCH OF THE JUDGEMADE LAW THAT THEY WANTED JUSTICE WHITE RECOILED FROM SUCH A LARGE SHIFT OF LEGISLATIVE POWER INTO THE COURTS AND SO FOR THE MODERN LIBERAL HE IS AN APOSTATE A CONSERVATIVE SO GOES THE HISTORY OF OUR TIMES IN ADDITION TO FINDING A REPLACEMENT FOR JUSTICE WHITE PRESIDENT CLINTON MUST NAME 116 FEDERAL JUDGES TO FILL CURRENT VACANCIES NEARLY ONE IN SEVEN OF THE LIFETIME APPOINTMENTS IN ALL OF THESE APPOINTMENTS BUT MOST ESPECIALLY IN HIS CHOICE TO REPLACE JUSTICE WHITE PRESIDENT CLINTON WILL SHOW US JUST WHAT KIND OF LIBERAL HE REALLY IS HE CLAIMS JOHN F KENNEDY AS A HERO BUT WHETHER THAT ADMIRATION EXTENDS TO THE KENNEDY LIBERALISM THAT APPOINTED A BYRON WHITE TO THE SUPREME COURT REMAINS TO BE SEEN 9303220077 930322 INTEL TO REPORT IT IS SHIPPING ITS NEWEST CHIP LIST PRICE IS SAID TO BE LOW SUGGESTING QUICK SHIFT LATEST TECHNOLOGY BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL WHEN INTEL CORP ANNOUNCES TODAY THAT IT HAS BEGUN SHIPPING PRODUCTION VERSIONS OF ITS NEWEST MICROPROCESSOR THE PENTIUM IT DOESN'T PLAN TO DISCUSS PERHAPS THE MOST IMPORTANT DETAIL PRICE BUT ACCORDING TO SOURCES FAMILIAR WITH INTEL'S PLANS THE LIST PRICES FOR THE CHIP WHICH WILL BE USED AS THE BRAINS OF PERSONAL COMPUTERS WILL ALLOW PC MAKERS TO SELL DESKTOP PENTIUM MACHINES AT PRICES THAT ARE RELATIVELY LOW FOR NEWGENERATION MACHINES PC MAKERS SAY THEY EXPECT THEIR FIRST PENTIUM MACHINES DUE OUT IN MAY TO LIST FOR AS LITTLE AS 4500 THAT'S HALF THE LIST PRICE OF THE FIRST MACHINES BUILT AROUND INTEL'S CURRENT FLAGSHIP CHIP THE 486 AFTER IT WAS INTRODUCED IN 1989 AND ONLY ABOUT 50 MORE THAN A TYPICAL MAILORDER 486 MACHINE SELLS FOR TODAY LOWPRICED PENTIUM MACHINES COULD PUT NEW DOWNWARD PRESSURE ON PC PRICES AND HASTEN THE SHIFT AMONG PC BUYERS TO INTEL'S NEW TECHNOLOGY BUT THAT'S EXACTLY WHAT INTEL WANTS WHILE OFFICIALS AT THE SANTA CLARA CALIF COMPANY HAVE CONSISTENTLY DECLINED TO DIVULGE THEIR PRICING PLANS FOR THE PENTIUM ITS CHIEF EXECUTIVE OFFICER ANDREW GROVE HAS SAID IN INTERVIEWS THAT INTEL WILL PRICE THE NEW CHIP AGGRESSIVELY IN ORDER TO MOVE CUSTOMERS TO THE NEW CHIP MORE QUICKLY THAN IN PAST GENERATIONS ACCORDING TO SOURCES FAMILIAR WITH INTEL'S PLANS FOR THE FIRST TWO VERSIONS OF THE CHIP THE COMPANY HAS LISTED A SLOWER 60MEGAHERTZ VERSION AT 905 EACH IN LOTS OF 1000 CHIPS BUT HAS DISCOUNTED THE PRICE TO ABOUT 850 EACH FOR SOME GOOD CUSTOMERS INTEL HAS LISTED THE FASTER 66MEGAHERTZ VERSION AT 995 EACH THE SOURCES SAID THE PENTIUM CONTAINS MORE THAN TWICE AS MANY TRANSISTORS AS INTEL'S FASTEST 486 WHICH LISTS FOR 570 AND WILL RUN TYPICAL SOFTWARE MORE THAN TWICE AS FAST INTEL SAID PC MAKERS HOPE THE NEW CHIP WILL HELP THEM EXPAND THEIR PRODUCT LINES INTO THE MARKETS FOR HIGHPOWERED MACHINES CALLED SERVERS WHICH TIE TOGETHER NETWORKS OF DESKTOP COMPUTERS AND FOR WORKSTATIONS POWERFUL COMPUTERS WHICH ARE FAVORED BY ENGINEERS AND AN INCREASING NUMBER OF FINANCIAL INSTITUTIONS COMPAQ COMPUTER CORP FOR EXAMPLE SAID IT WILL BEGIN SELLING MULTIPROCESSOR PENTIUM SERVERS WHICH CHAIN TOGETHER SEVERAL CHIPS FOR ADDED PROCESSING POWER AND DESKTOP MACHINES IN MIDMAY FOUR OTHER VARIATIONS OF THE PENTIUM CHIP INTEL EXECUTIVES SAID EARLIER THIS YEAR ARE CURRENTLY UNDER DEVELOPMENT AND ABOUT 200 EMPLOYEES ARE WORKING ON A NEXT GENERATION P6 CHIP BEING PLANNED AS PENTIUM'S SUCCESSOR INTEL'S MR GROVE SAID IT EXPECTS TO SHIP HUNDREDS OF THOUSANDS OF PENTIUMS IN 1993 AND REACH A MANUFACTURING RATE OF A MILLION PENTIUM PROCESSORS IN 1994 9303220076 930322 LEISURE & ARTS BOOKSHELF NOVELS FROM VIETNAM AND AUSTRALIA BY MERLE RUBIN IT'S CERTAINLY SURPRISING CONSIDERING THE NUMBER OF VIETNAM NOVELS WRITTEN OVER THE PAST QUARTER CENTURY THAT WE'VE NOT BEEN EXPOSED TO EVEN ONE WRITTEN BY A VIETNAMESE DUONG THU HUONG'S PARADISE OF THE BLIND TRANSLATED BY PHAN HUY DUONG AND NINA MCPHERSON MORROW 270 PAGES 20 IS IN FACT THE FIRST SUCH NOVEL TO BE PUBLISHED IN THE US THE AUTHOR A HANOIBASED WRITER MOTHER EXPELLED COMMUNIST PARTY MEMBER AND YOUTHBRIGADE LEADER BEGAN TO PUBLISH HER INDEPENDENTMINDED NOVELS IN 1987 JUST AS THE PARTY STARTED ENCOURAGING WRITERS TO BE MORE OUTSPOKEN BUT IN 1989 THE WINDS OF CHANGE WERE BLOWING STRONGLY ENOUGH TO ALARM LOCAL APPARATCHIKS WHO SHUT HER UP IN A JAIL FOR SEVEN MONTHS EVEN SO THERE IS RELATIVELY LITTLE EMPHASIS ON THE SCARS OF BATTLE OR THE DEVASTATIONS OF THE BOMBINGS AS THE SAGA UNFOLDS MOSTLY IN NORTHERN VIETNAM A CHARACTER WHO LOSES A LEG DOES SO IN AN ORDINARY TRAFFIC ACCIDENT AND WHILE MUCH OF THE NOVEL'S MORAL INDIGNATION IS DIRECTED AT THE STUPIDITY CORRUPTION AND MEANSPIRITEDNESS OF THE COMMUNIST REGIME THE INJUSTICES PORTRAYED ARE HARDLY ODIOUS ENOUGH TO INSPIRE REDBLOODED AMERICANS TO VOLUNTEER EVEN RETROSPECTIVELY TO BOMB THE COMMIES BACK INTO THE STONE AGE SMOOTHLY BLENDING A FAMILY DRAMA WITH LARGER SOCIAL AND HISTORICAL EVENTS IS THE NARRATION BY HANG A YOUNG WOMAN WHO GROWS UP IN THE SLUMS OF HANOI SHARING A LEAKY SHACK WITH HER GENTLE SADEYED MOTHER QUE A STREET VENDOR QUE HAS GOOD REASON TO BE SAD SHE HAD BEEN LIVING IN HER ANCESTRAL VILLAGE HAPPILY MARRIED TO TON A STUDIOUS SCHOOLTEACHER WHEN HER NASTY YOUNGER BROTHER RETURNED FROM FIGHTING IN THE ANTIFRENCH RESISTANCE TO REEDUCATE THE VILLAGE ONE OF HIS FIRST EDUCATIONAL ACTS WAS FORCING HIS SISTER TO HAVE NOTHING MORE TO DO WITH HER EXPLOITIVE HUSBAND WHO OWNED A FEW ACRES OF RICE PADDIES TON'S SISTER TAM HOWEVER IS MADE OF STERNER STUFF AND EVENTUALLY RECLAIMS HER ANCESTRAL LAND TRANSFORMING IT INTO A PARADISE OF AGRICULTURAL BOUNTY IRONICALLY SHE REGAINS HER RIGHTS AS A RESULT OF A NEW CAMPAIGN FOR THE RECTIFICATION OF ERRORS OF THE SORT COMMITTED BY PEOPLE JUST LIKE HER ODIOUS BROTHERINLAW CHINH CHINH CONTINUES TO HARANGUE HIS NOWHUSBANDLESS SISTER QUE BECAUSE SHE RUNS A TINY MARKET STALL A DANGEROUS CAPITALIST OUTPOST YET QUE CAN'T STOP LOVING HER BULLYING BROTHER OR DOTING ON HIS TWO SONS TAM MEANWHILE IS STORING UP LOVE AND WEALTH FOR HER NIECE HANG HER SOLE LIVING DESCENDENT AS TENSIONS BETWEEN HER MOTHER AND AUNT INCREASE HANG IS CAUGHT IN THE MIDDLE TORN BETWEEN LOVE FOR HER MOTHER AND A GROWING DISGUST AT QUE'S SLAVISH DEVOTION TO THE HATEFUL UNCLE WHO DESTROYED HER FATHER MS DUONG'S CLEAR PROSE VIVIDLY EVOKES THE LUSH LANDSCAPE AND THE TEXTURES OF DAILY LIFE MOST NOTABLY THE GREAT IMPORTANCE SYMBOLIC AS WELL AS NUTRITIONAL OF FOOD IN VIETNAMESE CULTURE HER SKILLFULLY INTEGRATED NOVEL NOT ONLY EXPOSES THE FLAWS OF A POLITICAL SYSTEM THAT FOSTERS CONFORMITY REVENGE AND HYPOCRISY BUT ALSO REVEALS THE MORE INSIDIOUS PSYCHOLOGY OF A HIGHLY TRADITIONAL WORLD IN WHICH KINSHIP TIES OFTEN RUN DEEPER THAN ROMANTIC PASSION MARRIAGE VOWS OR IDEOLOGICAL FASHION WHILE THERE ARE STILL FEW NOVELS OUT OF SOUTHEAST ASIA THERE IS NO SHORTAGE OF AUSTRALIAN FICTION NOT WITH THOMAS KENEALLY SITTING DUTIFULLY AT HIS DESK THE POPULAR PRIZEWINNING AUTHOR OF SCHINDLER'S LIST THE CHANT OF JIMMIE BLACKSMITH TO ASMARA AND MANY MORE HAS A KNACK FOR PICKING INNATELY INTERESTING TOPICS FROM HISTORY AND CURRENT EVENTS THE AMERICAN CIVIL WAR THE RECENT ERITREAN RESISTANCE AND PRODUCING CREDIBLE FICTIONAL VERSIONS THAT HELP EXPLAIN THE ISSUES WHILE PROVIDING A RELATIVELY PAINLESS GOOD READ BUT JUST WHY SO MUCH CRITICAL ACCLAIM HAS BEEN HEAPED ON THIS COMPETENT PEDESTRIAN WRITER A SORT OF CROSS BETWEEN HIS COMPATRIOTS PATRICK WHITE AND MORRIS WEST WITH MORE OF WEST THAN WHITE REMAINS A MYSTERY WITH THE RELEASE OF HIS LATEST NOVEL WOMAN OF THE INNER SEA NAN A TALESE/DOUBLEDAY 277 PAGES 21 SHE'S AN UPSCALE EVERYWOMAN KATE GAFFNEYKOZINSKI AN AUSTRALIAN OF IRISH DESCENT MARRIED TO A POLISHAUSTRALIAN CONSTRUCTION MAGNATE WHO IS NOT THE NICE CATHOLIC BOY SHE FIRST TOOK HIM FOR WHEN TRAGEDY STRIKES HER ALREADY SHAKY MARRIAGE KATE LOSES HERSELF BY DISAPPEARING INTO THE OUTBACK HER NEW LIFE OF DELIBERATE DRABNESS BEGINS WHEN SHE TAKES A JOB AS A BARMAID IN A SMALLTOWN RAILWAY HOTEL HER ADVENTURES AND THE NOVEL TAKE OFF FROM THERE MR KENEALLY IS ON SOLID IF NOT EXACTLY ORIGINAL GROUND PORTRAYING THE QUIET HEROISM OF LIFE IN A BACKWATER AND THE STRENGTH KATE GAINS FROM IMMERSING HERSELF IN THIS LIFE BUT HIS TREATMENT OF KATE'S BACKGROUND AND HER RELATIONSHIP WITH HER UNCLE FRANK A ROUGHANDREADY PRIEST WHO RUNS A BOOKMAKING RACKET IS TEDIOUS AND COY THE OPENING CHAPTERS ARE WRITTEN IN A REPELLENTLY BREEZY QUASIGAELIC STYLE WHICH MERCIFULLY SUBSIDES BY THE TIME KATE REACHES THE OUTBACK SOME GENUINE DRAMA IS WEAKENED BY GIMMICKY FALSE SUSPENSE AS THE AUTHOR DELIBERATELY SKIPS OVER CRUCIAL SCENES ONLY TO REVEAL LATER WHAT HIS HEROINE HAS ALREADY EXPERIENCED 9303220075 930322 POLITICS & POLICY JUSTICE WHITE'S DEPARTURE GIVES CLINTON A CHANCE TO RETURN COURT TO THE CENTER OR TILT IT HIS WAY BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S FIRST OPPORTUNITY TO PICK A SUPREME COURT JUSTICE PRESENTS HIM WITH A CHOICE BETWEEN SEEKING A COALITION BUILDER TO NUDGE THE RIGHTWARDLEANING COURT BACK TOWARD THE CENTER OR A WARRIOR TO REJUVENATE ITS SHRUNKEN AND AGED LIBERAL BLOC CONSERVATIVE JUSTICE BYRON WHITE'S DECISION TO RETIRE AT THE END OF THE CURRENT TERM GIVES MR CLINTON A CHANCE TO AFFECT THE COURT'S STANCE ON A RANGE OF CONTROVERSIAL ISSUES INCLUDING ABORTION HOMOSEXUAL RIGHTS AND RACIAL PREFERENCES IN THE WORKPLACE BUT AIDES AND OUTSIDERS ARE TELLING HIM THAT THE MOST PROMISING STRATEGY FOR ACCOMPLISHING THAT IS TO SEEK A PERSON WITH MODERATE VIEWS AND A CAUTIOUS COLLEGIAL STYLE THAT'S BECAUSE THE KEY TO ACHIEVING MAJORITIES IN THE NEAR FUTURE WILL BE WINNING THE SUPPORT OF THE HIGH COURT'S THREE MODERATE CONSERVATIVES SANDRA DAY O'CONNOR ANTHONY KENNEDY AND DAVID SOUTER WHO ARE MORE LIKELY TO FORM ALLIANCES WITH A NEW COLLEAGUE WHO MOVES GINGERLY AND WEIGHS OPPOSING ARGUMENTS WITH CARE THE PRESIDENT HAS ALSO PLEDGED TO CONSIDER APPOINTING A MINORITYGROUP MEMBER OR A WOMAN THE ONLY PERSON MR CLINTON HAS ACTUALLY IDENTIFIED AS A POTENTIAL APPOINTEE IS NEW YORK GOV MARIO CUOMO BUT HIS SELECTION IS FAR FROM AUTOMATIC ADMINISTRATION OFFICIALS SUGGESTED THAT THE GOVERNOR COULD STIR STRONG REPUBLICAN OPPOSITION AND THAT HIS SOMETIMES PRICKLY MANNER COULD KEEP HIM FROM COAXING THE COURT TO THE LEFT AS THE PRESIDENT WOULD LIKE FOR MR CUOMO'S PART ONE OF HIS ADVISERS SAID OVER THE WEEKEND THAT HE IS INTERESTED IN THE SUPREME COURT BUT DOESN'T WANT TO BE COY ABOUT IT OR WAGE A CAMPAIGN AND WHITE HOUSE AIDES SAY THEY KNOW THEY MUST BE CAREFUL ABOUT DENYING THE SLOT TO SUCH A POTENT POLITICIAN WITHOUT HAVING A VERY GOOD REASON OTHER SERIOUS CANDIDATES INCLUDE THREE FEDERAL APPEALS COURT JUDGES AMALYA KEARSE OF NEW YORK AND PATRICIA WALD OF WASHINGTON BOTH OF WHOM WERE CONSIDERED FOR ATTORNEY GENERAL AND RICHARD ARNOLD OF LITTLE ROCK ARK A LONGTIME FRIEND OF THE PRESIDENT AND HIS WIFE HILLARY RODHAM CLINTON ALSO SAID TO BE UNDER CONSIDERATION ARE JOSE CABRANES CHIEF JUDGE OF THE US DISTRICT COURT IN CONNECTICUT AND STEPHEN BREYER CHIEF OF THE FEDERAL APPEALS COURT IN BOSTON ALL ARE CONSIDERED MODERATES BUT THE PRESIDENT'S MOST INFLUENTIAL ADVISER HIS WIFE IS THOUGHT TO BE A POTENTIAL VOICE FOR APPOINTMENT OF A MORE AGGRESSIVE LIBERAL PERHAPS HARVARD LAW SCHOOL PROFESSOR LAURENCE TRIBE WHO HAS STRONG TIES TO SOME SENATE DEMOCRATS OR MARIAN WRIGHT EDELMAN HEAD OF THE CHILDREN'S DEFENSE FUND AND A CLOSE FRIEND OF MRS CLINTON'S MS EDELMAN HAS SAID THAT SHE ISN'T INTERESTED IN LEAVING HER ADVOCACY WORK AND MR TRIBE WOULD PROVOKE FIERCE REPUBLICAN OPPOSITION BECAUSE OF HIS WORK TO DEFEAT THE 1987 HIGH COURT NOMINATION OF ROBERT BORK BUT IF MR CLINTON DOES WANT TO PUT A STRONG LIBERAL ON THE COURT THIS YEAR MAY BE THE TIME TO DO IT WHILE HE STILL HAS A LOT OF POLITICAL CAPITAL TO SPEND ON A SENATE CONFIRMATION FIGHT THE WHITE HOUSE'S PREFERENCE IS TO NOMINATE SOMEONE QUICKLY AND HAVE THE SENATE APPROVE THAT PERSON QUICKLY AS WELL BUT WHETHER THAT HAPPENS DEPENDS ON WHETHER THE SENATE IS ABLE TO TAKE THE HIGHLY UNUSUAL STEP OF APPROVING THE SUCCESSOR FOR A STILLSITTING JUSTICE THE LAST THING THE WHITE HOUSE WANTS IS TO GIVE ITS OPPONENTS A LONG TIME TO WORK AGAINST ITS NOMINEE SO IT MAY DELAY ITS CHOICE IF THE JUDICIARY COMMITTEE ISN'T ABLE TO ACT RAPIDLY ON THE NOMINATION JUSTICE WHITE'S DEPARTURE MARKS THE END OF THE HIGHWATER PERIOD OF CONSERVATIVE EFFORTS TO DISMANTLE LIBERAL VICTORIES OF THE WARREN AND BURGER COURTS BUT WHOEVER SUCCEEDS HIM PROBABLY CAN'T CAUSE AN IMMEDIATE OR DRASTIC TURNABOUT ON THE SUPREME COURT THIS WILL REMAIN ON THE WHOLE A CONSERVATIVE COURT FOR SOME TIME SAYS LOUIS MICHAEL SEIDMAN A LAW PROFESSOR AT GEORGETOWN UNIVERSITY PRESIDENT CLINTON ALMOST SURELY WILL HAVE ONE OR MORE ADDITIONAL VACANCIES TO FILL BUT THE NEXT JUSTICE EXPECTED TO ANNOUNCE HIS RETIREMENT 84YEAROLD HARRY BLACKMUN IS A RELATIVELY PREDICTABLE LIBERAL VOTE AS IS 73YEAROLD JUSTICE JOHN PAUL STEVENS WHO MAY ALSO RETIRE WITHIN THE NEXT FOUR YEARS EVEN IF MR CLINTON ULTIMATELY GETS TO APPOINT A MAJORITY OF THE JUSTICES IT ISN'T LIKELY THAT THE SUPREME COURT WOULD AGAIN BECOME THE CATALYST OF SOCIAL CHANGE THAT IT WAS FROM THE MID1950S THROUGH THE EARLY 1970S AT LEAST TO SOME DEGREE THERE IS NOW A CONSENSUS BACKING THE CONSERVATIVE ARGUMENT THAT SOCIAL CHANGE IS BEST ACCOMPLISHED THROUGH THE LEGISLATIVE AND EXECUTIVE BRANCHES RATHER THAN BY JUDICIAL CREATION OF NEW CONSTITUTIONAL RIGHTS ALTHOUGH THE 75YEAROLD JUSTICE WHITE HAS VOTED WITH THE COURT'S CONSERVATIVES ON MANY OF THE HOTTEST CONTROVERSIES OF THE PAST TWO DECADES HE IS THE ONLY REMAINING JUSTICE TO HAVE BEEN APPOINTED BY A DEMOCRATIC PRESIDENT JOHN F KENNEDY IN 1962 AND REMAINS LOYAL TO HIS PARTY FOR THE LAST SEVERAL YEARS ASSOCIATES SAY HE HAS BEEN BORED AND EAGER TO STEP DOWN IF A DEMOCRAT WERE ELECTED PRESIDENT JUSTICE WHITE HAS CONSISTENTLY OPPOSED BROAD APPLICATION OF A CONSTITUTIONAL RIGHT TO PRIVACY MOST NOTABLY IN CASES INVOLVING CHALLENGES TO ABORTION RESTRICTIONS ALTHOUGH HE'S A STRONG PROPONENT OF FEDERALLY IMPOSED SCHOOL DESEGREGATION HE GENERALLY ARGUED AGAINST EXPANSIVE RACIAL PREFERENCE POLICIES IN THE WORKPLACE AND IN THE 1960S HE DISSENTED FROM RULINGS THAT CREATED NEW PROTECTIONS FOR CRIMINAL DEFENDANTS IN THE 1980S AND 1990S HE HAS SEEN HIS VIEWS PARTIALLY VINDICATED AS THE COURT HAS CUT BACK ON THOSE PROTECTIONS REPLACING HIM WITH SOMEONE MORE LIBERAL ON THESE MATTERS COULD CHANGE THE RESULTS IN SOME CASES FOR EXAMPLE THE HIGH COURT WILL PROBABLY BE ASKED TO CLARIFY WHICH TYPES OF ABORTION RESTRICTIONS ARE PERMISSIBLE UNDER ITS COMPROMISE 54 RULING OF LAST TERM JUSTICE WHITE DISSENTED FROM THE DECISION WHICH PRESERVED A LIMITED CONSTITUTIONAL RIGHT TO ABORTION A POTENTIAL MOVE TO OVERTURN THE COURT'S 54 RULING IN 1986 UPHOLDING GEORGIA'S ANTISODOMY LAWS ILLUSTRATES HOW THE COURT'S DYNAMIC COULD CHANGE DEPENDING ON WHETHER MR CLINTON CHOOSES AN ALLOUT LIBERAL OR SOMEBODY MORE MODERATE JUSTICE WHITE WROTE THE MAJORITY OPINION IN THE CASE AND WAS JOINED BY CHIEF JUSTICE WILLIAM REHNQUIST JUSTICES ANTONIN SCALIA AND CLARENCE THOMAS WEREN'T ON THE COURT THEN BUT WOULD PROBABLY REAFFIRM THE RULING JUSTICES BLACKMUN AND STEVENS DISSENTED AND WOULD VOTE TO OVERTURN THE DECISION NOW AN AGGRESSIVE LIBERAL PUSHING A SWEEPING ARGUMENT ABOUT THE RIGHT TO PRACTICE GAY SEX MIGHT DISCOURAGE JUSTICE O'CONNOR WHO VOTED WITH THE MAJORITY IN 1986 BUT ISN'T REGARDED AS BEING AS HARDLINE AS THE OTHERS FROM SWITCHING LIKEWISE AN OPINION THAT DRAMATICALLY OVERTURNED THE 1986 DECISION MIGHT TROUBLE JUSTICE SOUTER WHO WASN'T ON THE COURT IN 1986 BUT WHO IS ESPECIALLY CONCERNED THAT THE COURT NOT APPEAR TO SWAY ACCORDING TO THE POLITICAL PRESSURES OF THE MOMENT BY CONTRAST A NARROW OPINION STRIKING DOWN AN ANTISODOMY LAW AS IRRATIONAL AND UNFAIR BECAUSE IT IS APPLIED ONLY TO HOMOSEXUALS AND NOT HETEROSEXUALS MIGHT ATTRACT THE SYMPATHY OF THE MODERATE CONSERVATIVE JUSTICES THAT'S THE REAL CHOICE CLINTON HAS SOMEONE WHO WILL PULL THE MODERATE CONSERVATIVES ALONG ON AT LEAST SOME OCCASIONS VS SOMONE OF A MORE LIBERALWARRIOR MENTALITY SAYS JAMIN RASKIN A LAW PROFESSOR AT AMERICAN UNIVERSITY ONE AREA WHERE JUSTICE WHITE'S DEPARTURE COULD HAVE AN IMPACT IS FREEDOMOFTHEPRESS CASES THE JUSTICE THOUGHT THE COURT WENT TOO FAR IN GIVING JOURNALISTS PROTECTION AGAINST LIBEL SUITS HE HAS SAID PRIVATELY THAT HIS BIGGEST MISTAKE WAS JOINING THE MAJORITY IN THE SEMINAL 1964 PRESSPROTECTION CASE OF NEW YORK TIMES VS SULLIVAN ANOTHER AREA OF CONSTITUTIONAL LAW AFFECTED BY HIS DEPARTURE MAY BE CHURCHSTATE RELATIONS HE VOTED TO UPHOLD STATE ASSISTANCE TO PAROCHIAL SCHOOLS AND OTHER FORMS OF OFFICIAL INVOLVEMENT WITH RELIGION JUSTICE WHITE'S POSITIONS ON OTHER CONSTITUTIONAL QUESTIONS ILLUSTRATE THAT CONVENTIONAL POLITICAL LABELS CAN BE MISLEADING WHEN APPLIED TO MEMBERS OF THE HIGH COURT HE HAS BEEN A STRONG PROPONENT OF FEDERAL LEGISLATIVE AND ADMINISTRATIVE AUTHORITY IN ALMOST ALL CONTEXTS THUS HE VOTED TO UPHOLD CONGRESSIONALLY MANDATED AFFIRMATIVE ACTION BUT OPPOSED LOCAL MINORITY SETASIDE PROGRAMS HE WAS NEITHER A CONSISTENT FRIEND NOR FOE OF BUSINESS INTERESTS HE OFTEN VOTED AGAINST BUSINESS LITIGANTS IN CASES INVOLVING CHALLENGES TO FEDERAL REGULATION BUT THE FLIP SIDE OF HIS APPROACH WAS TO LIMIT THE AUTHORITY OF STATE TAX COLLECTORS OR REGULATORS ACCUSED OF INTERFERING WITH INTERSTATE COMMERCE OR OTHER MATTERS SUPERVISED BY FEDERAL OFFICIALS JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE 9303220074 930322 BUSINESS BRIEF TECHNICAL COMMUNICATIONS CORP SHARP DROP IN PROFIT IS SEEN BY COMPANY FOR FISCAL 1993 TECHNICAL COMMUNICATIONS CORP CONCORD MASS SAID IT EXPECTS A SIGNIFICANT REDUCTION IN EARNINGS INCLUDING THE POSSIBILITY OF A LOSS FOR THE YEAR ENDING OCT 2 TECHNICAL COMMUNICATIONS A MAKER OF DEVICES TO SCRAMBLE WIRETAPS AND OTHER TYPES OF SURVEILLANCE EARNED 13 MILLION OR 102 A SHARE ON SALES OF 145 MILLION IN FISCAL 1992 SEVERAL LARGE ORDERS THAT TECHNICAL COMMUNICATION ANTICIPATED RECEIVING HAVE BEEN DELAYED SAID ARNOLD M MCCALMONT CHAIRMAN AND CHIEF EXECUTIVE OFFICER CAUSING THE COMPANY TO HAVE AN UNUSUALLY LOW BACKLOG OF UNDER 2 MILLION AND SEVERAL LARGE ORDERS THAT MAY NOT BE BOOKED IN TIME FOR SHIPMENT IN FISCAL 1993 9303220073 930322 BUSINESS BRIEF UNILEVER NV HINDUSTAN LEVER UNIT SETS PACT TO ACQUIRE SOAP MAKER ANGLODUTCH CONSUMER PRODUCTS GROUP UNILEVER NV ROTTERDAM NETHERLANDS SAID ITS 51OWNED HINDUSTAN LEVER LTD WILL TAKE OVER A RIVAL INDIAN SOAP AND DETERGENT MAKER IN A SHARE SWAP UNILEVER SAID HINDUSTAN LEVEL WILL PAY TWO OF ITS SHARES FOR EVERY 15 SHARES OWNED BY STOCKHOLDERS OF TATA OIL MILLS CO LTD TATA IS UNDER MANAGEMENT CONTROL OF INDIA'S TATA GROUP THOUGH IT'S ONLY 20 OWNED BY THE GROUP WHICH SPECIALIZES IN HEAVY ENGINEERING CAPITAL GOODS AUTOMOBILES AND OTHER INDUSTRIAL PRODUCTS UNILEVER SAID THAT TO MAINTAIN ITS CURRENT STAKE IN HINDUSTAN LEVER FOLLOWING THE SHARE SWAP IT WILL ACQUIRE 3134 MILLION RUPEES 10 MILLION WORTH OF HINDUSTAN LEVER SHARES IN A PRIVATE PLACEMENT UNILEVER SAID THE ACQUISITION IS SUBJECT TO EXPECTED APPROVALS FROM SHAREHOLDERS THE INDIAN HIGH COURT AND OTHER PROCEDURAL FORMALITIES 9303220072 930322 POLITICS & POLICY TARULLO MEXICAN ADVISER ON NAFTA IS EXPECTED TO RUN US TRADE OFFICE BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO CHOOSE DANIEL TARULLO A LAWYER WHO WORKED FOR MEXICO IN ITS TRADE TALKS WITH THE US AS A TOP OFFICIAL OVERSEEING THE STATE DEPARTMENT'S TRADE OFFICE THE APPOINTMENT WOULD COME AT A DELICATE TIME AS US MEXICAN AND CANADIAN NEGOTIATORS TRY TO HASH OUT SIDE DEALS FOR THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH WOULD DISMANTLE MANY TRADE BARRIERS BETWEEN THE THREE COUNTRIES US ACTIVISTS CONCERNED ABOUT VARIOUS ASPECTS OF THE TRADE ACT SAID PRIVATELY THAT MR TARULLO'S PAST WORK PRESENTED A POTENTIAL CONFLICT OF INTEREST LORI WALACH DIRECTOR OF INTERNATIONAL PROGRAMS AT PUBLIC CITIZEN AN ENVIRONMENTAL ADVOCACY GROUP CRITICAL OF THE NORTH AMERICAN TRADE AGREEMENT SAID IT'S ABSOLUTELY DISQUIETING WHEN THE WHOLE US NATIONAL INTEREST IS IN THE PURVIEW OF SOMEONE WHO JUST DAYS BEFORE WAS REPRESENTING THE WHOLE NATIONAL INTEREST OF A FOREIGN GOVERNMENT MR TARULLO'S LAW FIRM SHEARMAN & STERLING HAS BEEN ADVISING MEXICO'S MINISTRY OF COMMERCE AND INDUSTRIAL DEVELOPMENT SINCE EARLY 1991 ON NEGOTIATIONS FOR THE TRADE PACT THE MINISTRY HAS AN OFFICE HERE THAT WORKS WITH SHEARMAN & STERLING LAWYERS INCLUDING MR TARULLO THE 40YEAROLD MR TARULLO IS EXPECTED TO BE NAMED THE STATE DEPARTMENT'S ASSISTANT SECRETARY FOR ECONOMIC AND BUSINESS AFFAIRS WHICH WOULD INCLUDE RESPONSIBILITY FOR ITS TRADE OFFICE IN THAT POST HE WOULD ALSO DEAL WITH THE WORLD TRADE TALKS AND OTHER ISSUES RELATED TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHILE US TRADE REPRESENTATIVE MICKEY KANTOR AND HIS OFFICE TAKE THE LEAD IN TRADE NEGOTIATIONS THE STATE DEPARTMENT AND OTHER AGENCIES WEIGH IN WITH THEIR OWN ANALYSES AND TALKING POINTS A STATE DEPARTMENT OFFICIAL SAID MR TARULLO INDICATED THAT HE WASN'T ONE OF THE FIRM'S CHIEF LAWYERS WORKING ON THE FREE TRADE PACT BUT HANDLED SPECIFIC LEGAL ISSUES AS THEY AROSE THE OFFICIAL SAID THAT MR TARULLO OFFERED TO RECUSE HIMSELF FROM ALL FURTHER TALKS ON THE NORTH AMERICAN AGREEMENT BUT SAID THAT THE LENGTH OF TIME FOR THE RECUSAL HADN'T BEEN DETERMINED THE EXPECTED APPOINTMENT OF MR TARULLO COULD CAUSE SOME DISCOMFORT FOR THE CLINTON ADMINISTRATION FOLLOWING CAMPAIGN STATEMENTS BY MR CLINTON CRITICIZING THE REVOLVING DOOR THROUGH WHICH LAWYERS AND LOBBYISTS FOR FOREIGN INTERESTS TAKE US GOVERNMENT POSTS THAT INVOLVE THEIR FORMER CLIENTS THOSE CRITICISMS ECHOING STATEMENTS BY INDEPENDENT PRESIDENTIAL CANDIDATE ROSS PEROT HAVEN'T STOPPED THE APPOINTMENT HOWEVER OF OTHER LAWYERS AND LOBBYISTS TO KEY POSTS IN THE ADMINISTRATION US UNIONS MAY CONSIDER MR TARULLO AN ASSET IN THEIR BATTLE FOR LABOR PROTECTIONS TO ACCOMPANY THE FREE TRADE AGREEMENT HE IS CONSIDERED A STRONG PROPONENT OF LINKING FREE TRADE NEGOTIATIONS TO JOB CREATION AND RETRAINING HE RECEIVED TRADE EXPERIENCE IN THE CARTER ADMINISTRATION WHERE HE HELPED REVAMP ANTIDUMPING REGULATIONS AS AN ASSISTANT TO ROBERT HERZSTEIN WHO IS NOW SHEARMAN & STERLING'S CHIEF LAWYER FOR MEXICO MR TARULLO ALSO WORKED WITH LABOR SECRETARY ROBERT REICH IN ADVISING MICHAEL DUKAKIS'S 1988 PRESIDENTIAL CAMPAIGN MR HERZSTEIN DEFENDED MR TARULLO'S WORK AT SHEARMAN & STERLING SAYING DAN'S LEGAL WORK WAS PART OF A LEGITIMATE PROCESS INHERENT IN OUR GOVERNMENT SYSTEM AND CONSISTENT WITH OUR NATIONAL INTEREST MR TARULLO DECLINED TO COMMENT ON THE MATTER 9303220071 930322 BUSINESS BRIEF ASKO DEUTSCHE KAUFHAUS AG GERMAN RETAILER POSTS LOSS FOR LATEST 9MONTH PERIOD ASKO DEUTSCHE KAUFHAUS AG ONE OF GERMANY'S LARGEST RETAILERS ANNOUNCED A GROUP NET LOSS OF 462 MILLION MARKS 2813 MILLION FOR THE NINE MONTHS ENDED SEPT 30 THE COMPANY EARNED SIX MILLION MARKS IN 1991 CHAIRMAN KLAUS WIEGANDT SAID THE LOSS REFLECTS IN LARGE PART THE CLEANINGUP OF THE COMPANY'S BALANCE SHEET HE PREDICTED A SIZABLE PROFIT FOR THE CURRENT FISCAL YEAR GROUP SALES FOR THE NINE MONTHS TOTALED 159 BILLION MARKS COMPARED WITH 199 BILLION MARKS FOR THE FULL 1991 YEAR THE COMPANY SAID THE NINEMONTH PERIOD EXCLUDES THE KEY CHRISTMAS SEASON 9303220070 930322 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ILLINOIS BELL TELEPHONE CO 200 MILLION OF DEBENTURES DUE MARCH 15 2024 WAS PRICED WITH A 7 1/4 COUPON AT 99131 TO YIELD 7321 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED DOUBLEA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH GOLDMAN SACHS & CO ILLINOIS BELL IS A UNIT OF AMERITECH CORP MARK IV INDUSTRIES INC 225 MILLION OF 8 3/4 SENIOR SUBORDINATED NOTES DUE APRIL 1 2003 WERE OFFERED AT PAR THROUGH BEAR STEARNS & CO THE COMPANY SAID AN ADDITIONAL 33 MILLION OF NOTES ARE BEING SOLD TO COVER OVERALLOTMENT OPTIONS IF ANY CITIZENS CORP AN INITIAL OFFERING OF 6250000 COMMON SHARES WAS PRICED AT 24 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TRICORD SYSTEMS INC AN INITIAL OFFERING OF THREE MILLION COMMON SHARES WAS PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO MCGAW INC AN INITIAL OFFERING OF SIX MILLION COMMON SHARES WAS PRICED AT 8 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC THE SIZE OF THE OFFERING WAS DECREASED FROM THE ORIGINALLY PLANNED 113 MILLION SHARES EXPECTED TO COME TO MARKET BETWEEN 1050 AND 1250 EACH ALAMO GROUP INC AN INITIAL OFFERING OF 18 MILLION COMMON SHARES OF WAS PRICED AT 1150 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 84 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WAS OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 199357 IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES LLOYDS BANK PLC UK 200 MILLION OF 9 5/8 EUROBONDS DUE APRIL 6 2023 AT ISSUE PRICE 101854 VIA GOLDMAN SACHS INTERNATIONAL AND SG WARBURG SECURITIES REOFFERED INITIALLY AT 99979 TO YIELD 963 A MARGIN OF 110 BASIS POINTS ABOVE 8 3/4 UK GILT DUE 2017 FEES 2 1/2 BANKERS TRUST NEW YORK CORP US 100 MILLION OF COLLARED FLOATING RATE EURONOTES DUE APRIL 15 2005 AT ISSUE PRICE PAR VIA KIDDER PEABODY INTERNATIONAL LTD INTEREST FLOATS AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS MINUS 1/8 MINIMUM 5 MAXIMUM 9 FEES 1/2 WEST/LB FINANCE CURACAO NV GERMANY PARENT 150 MILLION OF COLLARED FLOATING RATE EURONOTES DUE MARCH 31 2003 VIA MERRILL LYNCH INTERNATIONAL INTEREST FLOATS AT 1/4 POINT BELOW LONDON INTERBANK OFFERED RATE FOR US DOLLARS MINIMUM 5 MAXIMUM 8 ISSUE PRICE PAR GUARANTOR WESTDEUTSCHE LANDESBANK GIROZENTRALE ON SUBORDINATED BASIS FEES 1/2 9303220069 930322 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 7/8 HIGH 2 3/4 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 119 DAYS 310 120 TO 149 DAYS 313 150 TO 239 DAYS 315 240 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 280 SIX MONTHS 297 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 305 30 DAYS 305 60 DAYS 305 90 DAYS 306 120 DAYS 309 150 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 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 625 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 15 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 3 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 725 60 DAYS 734 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 723 60 DAYS 733 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 9303220068 930322 BUSINESS BRIEF LENNAR CORP UNIT SETTLES PENDING SUITS BY HOMEOWNERS OVER STORM LENNAR CORP MIAMI SAID ITS LENNAR HOMES INC UNIT SETTLED ALL PENDING HOMEOWNER LAWSUITS RELATED TO HURRICANE ANDREW FOR 24 MILLION THE SETTLEMENT WHICH WAS EXPECTED INVOLVES 350 HOMEOWNERS WHO ALLEGED THE COMPANY'S CONSTRUCTION HAD BEEN SHABBY AND CONTRIBUTED TO THE DAMAGE IN THE 1992 STORM LENNAR'S INSURERS ARE PAYING THE SETTLEMENT THE COMPANY SAID LENNAR SAID IT CONTINUES TO BELIEVE IT WASN'T RESPONSIBLE FOR DAMAGE CAUSED BY THE EXTRAORDINARY STORM ALTHOUGH THE SETTLEMENT RESOLVES ALL HOMEOWNER CLAIMS THE COMPANY RECENTLY SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT AT LEAST ONE INSURER HAS INDICATED ITS INTENT TO ASSERT CLAIMS AGAINST THE COMPANY 9303220067 930322 BUSINESS BRIEF HANG LUNG DEVELOPMENT CO SIXMONTHS' NET ROSE 16 OVERALL RESULTS WERE MIXED THE HANG LUNG DEVELOPMENT CO GROUP OF COMPANIES POSTED MIXED RESULTS HANG LUNG BASED IN HONG KONG AND PRIMARILY A PROPERTY DEVELOPER AND A HOLDING COMPANY SAID ITS PROFIT ROSE 16 TO 7426 MILLION HONG KONG DOLLARS US96 MILLION FOR THE SIX MONTHS ENDED DEC 31 THE COMPANY'S PROPERTY INVESTMENT ARM AMOY PROPERTIES LTD REPORTED 46 EARNINGS GROWTH DURING THE PERIOD AMOY PROPERTIES WHICH OWNS A SHOPPING PLAZA IN THE COLONY SAID ITS INTERIM PROFIT SURGED TO HK6011 MILLION FROM THE YEAREARLIER'S HK4118 MILLION GRAND HOTEL HOLDINGS LTD THE GROUP'S HOTEL OPERATOR POSTED A 74 PROFIT DROP TO HK589 MILLION FROM THE YEAREARLIER HK636 MILLION 9303220066 930322 BUSINESS BRIEF BANKERS TRUST NEW YORK CORP CHARGE OF 70 MILLION SET FOR A RETIREMENT BENEFIT BANKERS TRUST NEW YORK CORP NEW YORK SAID IT WOULD TAKE A FIRSTQUARTER CHARGE OF 70 MILLION TO ACCOUNT FOR POSTRETIREMENT HEALTH BENEFITS THE CHARGE FOR RETIREMENT BENEFITS TAKEN AS PART OF THE ADOPTION OF FASB RULE 106 WAS 100 MILLION BEFORE TAXES THE COMPANY'S ANNUAL REPORT SAID IN OTHER ACCOUNTING MATTERS THE COMPANY HAS NOT DECIDED HOW TO ACCOUNT FOR UNUSED TAX BENEFITS IF THE COMPANY ADOPTS FASB RULE 109 PROSPECTIVELY AS OF JANUARY 1 1993 IT WOULD RESULT IN A GAIN OF 312 MILLION IN THE FIRST QUARTER THE COMPANY HAS NOT YET DECIDED WHETHER TO ADOPT THE NEW STANDARD PROSPECTIVELY OR RETROACTIVELY 9303220065 930322 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AMERICAN STUDIOS INC SECONDARY OFFERING OF THREE MILLION COMMON SHARES VIA ROBINSONHUMPHREY CO APACHE CORP 53 MILLION COMMON SHARES VIA MERRILL LYNCH & CO BANKERS LIFE HOLDINGS INITIAL 15 MILLION COMMON SHARES VIA MERRILL LYNCH BAREFOOT INC 15 MILLION COMMON SHARES VIA WILLIAM BLAIR & CO BIOVAIL CORP INTERNATIONAL INITIAL 25 MILLION COMMON SHARES VIA KIDDER PEABODY & CO BRE PROPERTIES INC 15 MILLION CLASS A COMMON SHARES VIA DEAN WITTER REYNOLDS INC BROOKSTONE INC INITIAL 2750000 COMMON SHARES VIA ROBERTSON STEPHENS & CO CENTURY COMMUNICATIONS CORP 187 MILLION OF SENIOR DISCOUNT NOTES VIA LEHMAN BROTHERS COAST SAVINGS FINANCIAL INC 15 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES FEDERAL REALTY INVESTMENT TRUST 25 MILLION COMMON SHARES VIA MERRILL LYNCH FIRST DATA CORP SECONDARY OFFERING OF 32 MILLION COMMON SHARES VIA LEHMAN BROTHERS FIRST WESTERN CORP 1750000 COMMON SHARES VIA PRUDENTIAL SECURITIES INC IMCO RECYCLING INC SECONDARY OFFERING OF 1483479 COMMON SHARES VIA MERRILL LYNCH INCO HOMES CORP INITIAL 26 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES KENDALL SQUARE RESEARCH CORP 2807350 COMMON SHARES VIA ALEX BROWN & SONS INC LIFE PARTNERS GROUP INC INITIAL 114 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP PAMIDA INC 140 MILLION OF SENIOR SUBORDINATED NOTES VIA CITICORP SECURITIES MARKETS INC PARALLAN COMPUTER INC INITIAL TWO MILLION SHARES VIA MONTGOMERY SECURITIES POTOMAC EDISON CO 75 MILLION OF FIRST MORTGAGE BONDS IN COMPETITIVE BID SOFTIMAGE INC 1220000 COMMON SHARES VIA HAMBRECHT & QUIST INC ZEBRA TECHNOLOGIES CORP SECONDARY OFFERING OF 2630000 CLASS A COMMON SHARES VIA WILLIAM BLAIR COBB COUNTY GA 1018 MILLION OF WATER AND SEWER REVENUE REFUNDING BONDS VIA COMPETITIVE BID LOS ANGELES DEPARTMENT OF WATER & POWER 5795 MILLION ISSUE OF 1993 ELECTRIC PLANT REVENUE REFUNDING BONDS VIA COMPETITIVE BID MINNEAPOLIS ST PAUL METROPOLITAN AREA COUNCIL MINN813 MILLION OF VARIOUS REFUNDING ISSUES VIA COMPETITIVE BID ALAMEDA COUNTY CALIF 169 MILLION OF 1993 REFUNDING CERTIFICATES OF PARTICIPATION VIA A GRIGSBY BRANDFORD & CO INC GROUP CALIFORNIA STATE PUBLIC WORKS BOARD 550 MILLION OF LEASE REVENUE REFUNDING BONDS VIA A MERRILL LYNCH GROUP INSURED BY AMBAC INDEMNITY CORP COLUMBUS OHIO 375 MILLION OF VARIOUSPURPOSE GENERAL OBLIGATION REFUNDING BONDS VIA AN AG EDWARDS & SONS INC GROUP HONOLULU CITY AND COUNTY HAWAII 450 MILLION OF REFUNDING AND NEWMONEY BONDS VIA A PRUDENTIAL SECURITIES GROUP INDIANA HEALTH FACILITY FINANCE AUTHORITY 81 MILLION OF BONDS VIA A FIRST BOSTON CORP GROUP PUERTO RICO TELEPHONE AUTHORITY 6617 MILLION OF REVENUE REFUNDING BONDS VIA A LEHMAN BROTHERS GROUP 9303220064 930322 MARKETING BRIEF NATIONAL MEDIA CORP MARKETING PACT IS SIGNED WITH GRUPO TELEVISA UNIT NATIONAL MEDIA CORP PHILADELPHIA SAID IT CONCLUDED A THREEYEAR MARKETING AGREEMENT WITH UNIVISA A SUBSIDIARY OF GRUPO TELEVISA A MEXICAN TELEVISION BROADCASTING COMPANY UNDER THE AGREEMENT UNIVISA WILL BECOME THE EXCLUSIVE MARKETER OF NATIONAL MEDIA PRODUCTS IN MEXICO THROUGH DIRECT RESPONSE TELEVISION RADIO PRINT DIRECT MAIL TELEMARKETING CATALOGS AND RETAIL OUTLETS NATIONAL MEDIA PRIMARILY A PRODUCER OF PROGRAMLENGTH INFOMERCIALS FOR CONSUMER PRODUCTS SAID UNIVISA WILL DUB ITS PROGRAMS INTO SPANISH AND THEN BROADCAST THE PROGRAMMING THROUGH GRUPO TELEVISA'S BROADCAST AND CABLE OPERATIONS THE FIRST TWO PRODUCTS TO BE MARKETED IN MEXICO UNDER THIS AGREEMENT WILL BE THE STAIRCLIMBER PLUS HOME STAIRCLIMBING MACHINE AND THE JUICE TIGER JUICING MACHINE NATIONAL MEDIA SAID 9303220063 930322 BUSINESS BRIEF KEYCORP BANKHOLDING FIRM UNVEILS FIVEYEAR BUSINESS TARGETS KEYCORP ALBANY NY ANNOUNCED A FIVEYEAR BUSINESS PLAN THAT SETS A GOAL OF A 13 ANNUAL COMPOUND INCREASE IN EARNINGS PER SHARE FOR 1994 THROUGH 1997 THE LAST FOUR YEARS OF THE PLAN THE REGIONAL BANKHOLDING COMPANY SAID IT ALSO INTENDS TO REACH A RETURN ON AVERAGE ASSETS OF 14 AND A RETURN ON COMMON EQUITY OF 1775 IN 1995 IN 1992 THE COMPANY REPORTED A RETURN ON ASSETS OF 104 AND A RETURN IN COMMON EQUITY OF 1648 FOLLOWING CERTAIN RESTRUCTURING CHARGES WE BELIEVE OUR INTERNAL GROWTH POTENTIAL IS STRONG ENOUGH TO ENABLE US TO CLOSE THE GAP BETWEEN OUR CURRENT LEVEL OF PERFORMANCE AND GOALS LIKE THESE THE COMPANY SAID BUT AS ALWAYS KEY WILL ALSO GROW THROUGH ACQUISITIONS KEYCORP SAID THE PROPORTION OF TOTAL NET INCOME DERIVED FROM ITS FINANCIALSERVICES SUBSIDIARIES COULD INCREASE TO AT LEAST 20 IN 1997 FROM ITS CURRENT 14 9303220062 930322 MARKETING & MEDIA NBC BRACES FOR DATELINE' FIASCO REPORT DEPARTURE PLANS OF 3 INVOLVED ARE SET BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NBC NEWS IS BRACING FOR THE EXPECTED RELEASE TODAY OF A POTENTIALLY SCATHING REPORT ON HOW SOME OF ITS EMPLOYEES PUT A STAGED TRUCK EXPLOSION ON THE AIR TOP BRASS OVER THE WEEKEND SET PLANS FOR THE DEPARTURE OF AT LEAST THREE EMPLOYEES INVOLVED IN THE SCANDAL THE GENERAL ELECTRIC CO UNIT HAD BEEN HOPING THAT THE INVESTIGATION BY AN OUTSIDE LAW FIRM WOULD HELP PUT THE EMBARRASSING BREAKDOWN IN JOURNALISTIC STANDARDS BEHIND IT THE PROBE DETAILS EXACTLY HOW NBC NEWS ALLOWED THE STAGED MATERIAL TO END UP IN A DATELINE NBC STORY ON UNSAFE GENERAL MOTORS CORP TRUCKS AND IS EXPECTED TO LEAD TO THE OUSTER OF THREE DATELINE PRODUCERS AS WELL AS THE REPRIMAND OR REASSIGNMENT OF A NUMBER OF OTHER EMPLOYEES NBC EXECUTIVES SPENT THE WEEKEND NEGOTIATING THE CONTRACT SETTLEMENTS OF DATELINE EXECUTIVE PRODUCER JEFF DIAMOND SENIOR PRODUCER DAVID RUMMEL GM STORY PRODUCER ROBERT READ AND CORRESPONDENT MICHELE GILLEN WITH A RATHER UNATTRACTIVE OPTION ON THE TABLE THEY COULD BE ALLOWED TO RESIGN IN EXCHANGE FOR RESTRICTIONS ON WHAT THEY COULD SAY PUBLICLY ABOUT THE SCANDAL OR THEY WOULD BE FIRED OUTRIGHT ACCORDING TO INSIDERS ALTHOUGH MS GILLEN WAS INITIALLY ASKED TO RESIGN WITH THE OTHER THREE THERE WERE INDICATIONS LAST NIGHT THAT SHE MAY YET BE ALLOWED TO STAY AT NBC NEWS ON FRIDAY NETWORK LAWYERS CONTACTED LAWYERS FOR THE FOUR STAFF MEMBERS BUT IT WAS UNCLEAR WHAT SETTLEMENTS IF ANY WERE REACHED TWO OF THE FOUR PEOPLE EXECUTIVE PRODUCER MR DIAMOND AND SENIOR PRODUCER MR RUMMEL SAID EMOTIONAL FAREWELLS TO THE SHOW'S STAFF ON FRIDAY MESSRS DIAMOND AND RUMMEL COULD NOT BE REACHED FOR COMMENT MR READ AND MS GILLEN DECLINED TO COMMENT THEY ARE THE LATEST BUT NOT NECESSARILY THE LAST CASUALTIES IN THE WORST SCANDAL TO BESET NBC NEWS IN ITS FOURDECADE HISTORY NBC NEWS PRESIDENT MICHAEL GARTNER RESIGNED ON MARCH 2 OVER THE INCIDENT PARTLY IN THE HOPES THAT HIS EXIT WOULD DEFUSE THE CONTROVERSY INSTEAD THE STORY HAS KEPT SIMMERING EVEN AS NBC SEARCHES FOR A NEW PRESIDENT OF THE NEWS DIVISION IT HAS TALKED TO AMONG OTHERS ABC NEWS PRESIDENT ROONE ARLEDGE CNN PRESIDENT TOM JOHNSON AND PBS COMMENTATOR BILL MOYERS THE GM SCANDAL BEGAN WITH THE DATELINE NBC STORY IN NOVEMBER IN WHICH NBC HAD GATHERED SUBSTANTIAL EVIDENCE ON SAFETY PROBLEMS WITH MILLIONS OF GM TRUCKS BECAUSE OF THE LOCATION OF THEIR GAS TANKS TO HELP DRAMATIZE THE STORY NBC HIRED A SMALL FIRM TO CONDUCT TWO CRASHES USING FOOTAGE FROM ONE THAT SHOWED THE TRUCK BURSTING INTO FLAME BUT NBC DIDN'T DISCLOSE WHAT GM LATER DID IN A LAWSUIT IT FILED AGAINST THE NETWORK THAT THE TESTERS HAD PLACED TINY TOY ROCKET ENGINES ON THE UNDERSIDE OF THE GAS TANK TO INCREASE THE CHANCES OF A FIRE YET NBC'S MR GARTNER FIRST DEFENDED THE USE OF THE ROCKET ENGINES AND THE USE OF THE DEMONSTRATION DAYS LATER NBC DISAVOWED ALMOST EVERY ASPECT OF THE CRASH TEST IN AN EXTRAORDINARY ONAIR APOLOGY IN EXCHANGE FOR GM DROPPING THE LAWSUIT NBC PRESIDENT ROBERT WRIGHT THEN CALLED FOR THE INDEPENDENT PROBE BY TWO OUTSIDE LAWYERS ROBERT S WARREN OF GIBSON DUNN & CRUTCHER AND LEWIS B KADEN OF DAVIS POLK & WARDWELL IT IS ESSENTIALLY A BLOWBYBLOW NARRATIVE OF WHAT HAPPENED AND WHAT WENT WRONG AMONG THE QUESTIONS WHO WAS DIRECTLY RESPONSIBLE FOR THE DECISION TO USE THE TOY ROCKET ENGINES HOW DID THE QUESTIONABLE FOOTAGE SLIP PAST NETWORK LAWYERS AND OTHER BUILTIN SAFEGUARDS DESIGNED TO PROTECT NBC FROM LEGAL ACTION HOW HIGH UP DID PRIOR KNOWLEDGE OF THE CRASH CONTROVERSY GO AND WHY DIDN'T TOP NBC NEWS EXECUTIVES REALIZE THE SERIOUSNESS OF GM'S COMPLAINTS FROM THE START THE FIVEWEEK INVESTIGATION INCLUDED INTERVIEWS WITH AT LEAST THREE DOZEN PEOPLE INCLUDING MULTIPLE INTERVIEWS WITH ALL OF THE PARTIES INVOLVED IN THE STORY BETWEEN THE TIME IT WAS PROPOSED ITS NOV 17 AIRING AND NBC'S FEB 9 APOLOGY EMPLOYEES ALSO WERE ASKED TO TURN OVER THEIR COMPUTER FILES RELATING TO THE STORY THE REPORT DOESN'T DIRECTLY MAKE ANY RECOMMENDATIONS AS TO WHAT ACTIONS NBC SHOULD TAKE ACCORDING TO EXECUTIVES FAMILIAR WITH THE SITUATION THOSE DECISIONS WERE MADE BY CORPORATE EXECUTIVES AS WELL AS SEVERAL NEWS DIVISION EXECUTIVES INCLUDING ACTING NEWS PRESIDENT DON BROWNE NBC HOPES THAT THE RELEASE OF THE REPORT AS EARLY AS TODAY WILL PUT AN END TO THE INCIDENT WHICH HAS BEEN THE FOCUS OF HUNDREDS OF PRESS REPORTS AS WELL AS JOKES BY STANDUP COMEDIANS AND EVEN A ZINGER FROM PRESIDENT BILL CLINTON HE CHOSE TO JOKE ABOUT THE ROCKET ENGINES DURING LAST WEEK'S WHITE HOUSE RADIO AND TELEVISION CORRESPONDENTS DINNER BUT THE PUBLICITY OVER THE EPISODE IS UNLIKELY TO DIE DOWN ANYTIME SOON NBC AFFILIATE STATIONS ARE ESPECIALLY UNHAPPY OVER THE EMBARRASSING TURN OF EVENTS AND THE SUBJECT IS LIKELY TO COME UP AT NBC'S SPRING MEETING WITH THE LOCAL STATIONS 9303220061 930322 INDUSTRY FOCUS US ALUMINUM MAKERS HIT DOWNSIDE OF GOING GLOBAL OVERSEAS SLUMPS TAKE HARSH TOLL DUE TO INDUSTRY'S WORLDWIDE NATURE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN ALUMINUM PRODUCERS BUILT AN AN EMPIRE ACROSS THE WORLD EVEN BEFORE GOING GLOBAL BECAME POPULAR BUT THESE DAYS THIS PIONEERING INDUSTRY IS FEELING A BIT HOMESICK AS OTHER US INDUSTRIES ROAR BACK TO HEALTH THE ALUMINUM BUSINESS IS ENTERING THE THIRD YEAR OF ITS DEEPEST SLUMP EVER WITH LITTLE PROSPECT FOR MUCH IMPROVEMENT IN 1993 WITH REAL ALUMINUM PRICES AT THEIR LOWEST IN HISTORY VIRTUALLY ALL MAJOR PRODUCERS HAVE DIPPED INTO THE RED REYNOLDS METALS CO THE NO 2 PRODUCER HAS ALREADY FORECAST A FIRSTQUARTER LOSS AND ANALYSTS SAY INDUSTRY LEADER ALUMINUM CO OF AMERICA DESPITE A MUCH BALLYHOOED COSTCUTTING EFFORT WOULD BE LOSING MONEY NOW WITHOUT ITS PRODUCTION OF ALUMINA A POWDER USED TO MAKE ALUMINUM AND OTHER PRODUCTS THE WORST PART IS THAT BECAUSE OF THE INDUSTRY'S INTERNATIONAL NATURE THE NORTH AMERICANS ARE LARGELY POWERLESS TO FIX THE PROBLEM DESPITE RECORD SHIPMENTS IN THE US WEAK ECONOMIES IN EUROPE AND JAPAN AND A SURGE IN EXPORTS FROM THE FORMER SOVIET UNION ARE DEPRESSING PRICES ON WORLD MARKETS WHICH DICTATE US PRICES WE'RE DOING WHATEVER WE CAN TO COMPETE AGAINST THE REST OF THE WORLD AND IT'S AN UPHILL FIGHT SAYS EMMETT BOYLE CHIEF EXECUTIVE OF ORALCO INC A WHEELING WVA ALUMINUM COMPANY THE UNITED STATES HAS ALREADY TAKEN A TREMENDOUS BEATING MR BOYLE SAYS THE US HAS SHUT DOWN 10 OF ITS 32 ALUMINUM SMELTERS IN THE LAST 15 YEARS AND SOLD TECHNOLOGY TO FOREIGN PRODUCERS THAT BENEFIT FROM LOWER ENERGY AND LABOR COSTS WHILE AMERICAN COMPANIES IN MANY INDUSTRIES FROM CHEMICALS TO CONSUMER PRODUCTS HAVE BEEN AFFECTED RECENTLY BY TROUBLES OVERSEAS ALUMINUM MAKERS HAVE A BIGGER PROBLEM BECAUSE THEY HAVE MORE INTERNATIONAL EXPOSURE ALCOA HAD 40 OF ITS SALES AND 43 OF ITS IDENTIFIABLE ASSETS IN FOREIGN LANDS IN 1992 THE PERCENTAGES FOR REYNOLDS METALS WERE 25 AND 36 AND WHILE MORE PAROCHIAL INDUSTRIES SUCH AS AMERICAN STEEL HAVE BEEN ABLE TO RATCHET UP PRICES DOMESTICALLY IN PART BECAUSE OF PROTECTION FROM FOREIGN STEEL ALUMINUM MAKERS HAVE NO SUCH LUXURY SINCE 1978 ALUMINUM PRICES HAVE BEEN SET ON THE LONDON METAL EXCHANGE PUTTING US PRODUCERS AT THE WHIM OF OVERSEAS TRADERS IF THE DEMAND IS WEAK ABROAD IT'S ALMOST AS BAD AS IF DEMAND IS WEAK DOMESTICALLY SAYS LLOYD T O'CARROLL REYNOLDS METALS' CHIEF ECONOMIST THE LONDON METAL EXCHANGE DOESN'T CARE WHERE THE METAL IS US ALUMINUM DEMAND WAS ACTUALLY UP SOME 10 LAST YEAR AND CONTINUES TO CLIMB TO RECORD LEVELS AS AMERICAN PRODUCERS GAIN MARKET SHARE IN NEW PRODUCTS AT THE SAME TIME US PRODUCTION WILL DROP ABOUT 85 THIS YEAR LEHMAN BROTHERS ANALYST THOMAS M VAN LEEUWEN PREDICTS BECAUSE OF CUTBACKS FORCED BY DROUGHT IN THE PACIFIC NORTHWEST THAT SHOULD MEAN HIGHER PRICES FOR US PRODUCERS BUT IT DOESN'T WHILE US PRODUCERS CUT PRODUCTION OUTPUT IS RISING IN CANADA EUROPE AND THE MIDDLE EAST AND BECAUSE OF SLACK DEMAND IN JAPAN AND EUROPE WORLDWIDE ALUMINUM GROWTH IS FLAT AS A RESULT MR VAN LEEUWEN SAYS THIS INDUSTRY IS UP TO ITS EYEBALLS IN INVENTORY THE 12WEEK OVERSUPPLY NEARLY DOUBLE HEALTHY LEVELS COULD TAKE A YEAR TO WORK OFF THAT IN TURN HAS KEPT ALUMINUM PRICES AROUND 55 CENTS A POUND DOWN FROM A PEAK OF 165 IN 1988 AGGRAVATING THE SITUATION IS THE FLOW OF METAL FROM THE FORMER SOVIET UNION BECAUSE OF DEFLATED DEMAND AT HOME AND A NEED FOR CASH TO PROP UP THE ECONOMY THESE COUNTRIES BEGINNING IN LATE 1990 HAVE BOOSTED EXPORTS FROM UNDER 300000 TONS ANNUALLY TO SOME 12 MILLION TONS EQUIVALENT TO 8 OF WESTERN PRODUCTION IT MEANS WE CEDE ANY GROWTH IN OUR MARKET TO THEM FOR THREE YEARS TO ABSORB THAT KIND OF VOLUME SAYS ROGER SCOTTTAGGART DIRECTOR OF INDUSTRY ANALYSIS FOR ALCAN ALUMINIUM LTD THE CANADIAN PRODUCER THANKS TO THE CHEAP RUBLE THE RUSSIAN MILLS ARE PROFITABLE THUS SHIPMENTS ARE LIKELY TO CONTINUE AND MAY ULTIMATELY INCLUDE FINISHED ALUMINUM GOODS CAUSING MORE DAMAGE TO AMERICAN PRODUCERS HE ADDS AT THE SAME TIME WESTERN EUROPEAN PRODUCERS HAVE SHOWN LITTLE APPETITE FOR CUTBACKS UNPROFITABLE STATEOWNED PRODUCERS SUCH AS ITALY'S ALUMINIO SPA AND SPAIN'S ALUMINIO ESPANOL SA AND INESPAL CONTINUE TO PUMP OUT METAL THE NORWEGIAN PRODUCER NORSK HYDRO HAS RETURNED TO ITS PREVIOUS OUTPUT AFTER CALLING FOR CUTBACKS STEWART SPECTOR AN ANALYST WHO WRITES THE SPECTOR REPORT CALLS THE SITUATION COLLECTIVE LUNACY VIRTUALLY EVERY SMELTER IN THE WORLD LOST MONEY IN 1992 DRAGGING DOWN FABRICATED PRICES AND DROPPING MARGINS FOR CAN SHEET THE INDUSTRY'S BIGGEST PRODUCT NEAR ALLTIME LOWS THE OVERSUPPLY COULD FORCE AMERICAN PRODUCERS TO KEEP THEIR CAPACITY IDLE IN THE PACIFIC NORTHWEST AND TO LOOK FOR DEEPER CUTS THIS CANNOT BE SUSTAINED MR SPECTOR SAYS IF IT STAYS BAD UNTIL 1995 OR 1996 THERE WILL BE FINANCIAL DISASTER IN THE ALUMINUM INDUSTRY WITH PRICES SET INTERNATIONALLY US ALUMINUM PRODUCERS CAN'T EASILY PASS ALONG HIGHER COSTS TO THEIR CUSTOMERS FOR THIS REASON THE CLINTON ADMINISTRATION'S PROPOSED ENERGY TAX MAKES THEM PARTICULARLY NERVOUS THE ALUMINUM ASSOCIATION WARNED THAT UNLESS THE PROPOSED TAX EXEMPTS ELECTRICITY USED AS AN INGREDIENT IN THE ALUMINUMMAKING PROCESS THE US PRIMARY ALUMINUM INDUSTRY AND ITS 24000 JOBS WILL BE JEOPARDIZED ALUMINUM IS MADE THROUGH A CHEMICAL REDUCTION PROCESS THAT REQUIRES HIGH LEVELS OF ELECTRICITY THE TAX WOULD ADD ONLY TWO CENTS A POUND TO PRODUCERS' COSTS AND NEW TECHNOLOGY COULD ELIMINATE THE COST ALTOGETHER BUT SAYS ORALCO'S MR BOYLE A COUPLE OF CENTS A POUND IS ENOUGH TO SINK YOUR SHIP TODAY AT THE SAME TIME MR BOYLE SAYS CLEAN AIR ACT AMENDMENTS COULD INCREASE HIS ENERGY COSTS 40 BY 2000 ALUMINUM PRODUCERS BELIEVE THAT THEIR COSTCUTTING AND MARKETING EFFORTS WILL HELP THEM OUTLAST THEIR INTERNATIONAL TROUBLES IN THE END THEY BELIEVE MOST ALUMINUM GROWTH WILL COME FROM ABROAD BUT THEY HAVE ALSO LEARNED THE PERILS OF GOING GLOBAL THE US INDUSTRY DIDN'T UNDERSTAND INTERNATIONAL DEVELOPMENTS WOULD KEEP HITTING US WITH PROBLEMS ONE AFTER ANOTHER REYNOLDS'S MR O'CARROLL SAYS THE INTERNATIONAL NATURE OF THE BUSINESS MAKES THE ENTIRE CYCLE MORE VOLATILE 9303220060 930322 BUSINESS BRIEF ASSET INVESTORS CORP SUBSTANTIAL' EXTRA DIVIDENDS ARE PLANNED ON 1992 RESULTS ASSET INVESTORS CORP A DENVER REAL ESTATE INVESTMENT TRUST SAID THAT AS A RESULT OF CHANGES IN MORTGAGE INTEREST RATES AND RATES OF PREPAYMENT PART OF ITS INCOME DURING 1992 WAS SUBSTANTIALLY HIGHER THAN PREVIOUSLY BELIEVED AS A RESULT THE COMPANY SAID THAT TO COMPLY WITH FEDERAL TAX CODES IT EXPECTS TO MAKE SUBSTANTIAL ADDITIONAL DIVIDEND DISTRIBUTIONS THE COMPANY ALSO SAID THAT ALTHOUGH IT HAS NOT DETERMINED THE FORM OR TIMING OF SUCH DIVIDENDS IT EXPECTS THAT ALL OR A SIGNIFICANT PORTION OF THE DISTRIBUTION WILL BE IN SECURITIES THE COMPANY ALSO SAID THAT AS A RESULT OF THE CURRENT RESIDENTIAL REAL ESTATE ENVIRONMENT AND ITS DISTRIBUTION REQUIREMENTS ITS BUSINESS MAY BE SUBSTANTIALLY RESTRUCTURED AND MAY ALSO FOCUS IN THE FUTURE ON OTHER ACTIVITIES INCLUDING THE ACQUISITION OF OWNERSHIP POSITIONS IN COMMERCIAL REAL ESTATE SECURITIES 9303220059 930322 BUSINESS BRIEF CHRYSLER CORP OUTPUT OF TRIM COMPONENTS TO CEASE AT WISCONSIN PLANT CHRYSLER CORP HIGHLAND PARK MICH SAID IT WILL CEASE PRODUCING TRIM PARTS IN MAY AT ITS BEAVER DAM WIS ASSEMBLY PLANT PLACING 14 WORKERS ON INDEFINITE LAYOFF OTHER PRODUCTION WILL CONTINUE AT THE PLANT THE FACILITY CURRENTLY SUPPLIES PARTS TO CHRYSLER'S BELVIDERE ILL ASSEMBLY PLANTS WHICH BUILDS THE OLD NEW YORKER IMPERIAL AND DYNASTY LUXURY MODELS CHRYSLER PLANS TO CEASE BUILDING THOSE VEHICLES AT THE END OF THE MODEL YEAR THUS ELIMINATING THE NEED FOR THOSE PARTS CHRYSLER RECENTLY INTRODUCED ITS NEW GENERATION OF NEW YORKER AND LHS LUXURY CARS WHICH ARE BUILT AT ITS BRAMALEA ONTARIO ASSEMBLY PLANT CHRYSLER SAID THIS SUMMER IT WILL CONVERT THE BELVIDERE PLANT TO ACCOMMODATE PRODUCTION OF ITS NEW NEON SUBCOMPACT CAR NEON'S TRIM COMPONENTS WILL BE ASSEMBLED AT THE BELVIDERE FACILITY 9303220058 930322 BUSINESS BRIEF ASIA CEMENT CORP PRETAX PROFIT INCREASED 13 IN '92 AS SALES CLIMBED 16 ASIA CEMENT CORP TAIWAN'S SECONDLARGEST CEMENT MAKER SAID THAT ITS 1992 PRETAX PROFIT EDGED UP 13 TO 419 BILLION NEW TAIWAN DOLLARS 1622 MILLION FROM NT414 BILLION A YEAR EARLIER AN ASIA CEMENT OFFICIAL ATTRIBUTED A 16 RISE IN SALES TO NT131 BILLION FROM NT113 BILLION TO ITS OPERATION OF A NEW PRODUCTION LINE STARTED LAST AUGUST THE LINE HAS AN ANNUAL PRODUCTION CAPACITY OF 16 MILLION METRIC TONS OF CEMENT THUS BOOSTING ITS TOTAL ANNUAL PRODUCTION CAPACITY TO 625 MILLION METRIC TONS THE OFFICIAL ALSO ATTRIBUTED THE SALES GAIN TO INCREASED LOCAL DEMAND FOR CEMENT STEMMING FROM THE REPUBLIC'S CONTINUING SIXYEAR NATIONAL DEVELOPMENT PLAN THE OFFICIAL SAID THE RELATIVELY SMALL RISE IN PROFIT WAS DUE TO A RISE IN COSTS FOR THE NEW PRODUCTION LINE FOR 1993 THE OFFICIAL NOTED THE COMPANY AIMS TO INCREASE SALES 84 TO NT142 BILLION WITH PRETAX PROFIT EXPECTED TO FALL 16 TO NT354 BILLION THE OFFICIAL ATTRIBUTED THE EXPECTED DECREASE IN PRETAX PROFIT TO A CONSERVATIVE ESTIMATE OF ITS NONOPERATING REVENUES 9303220057 930322 BUSINESS BRIEF JAMESWAY CORP LOSS OF 432 MILLION POSTED FOR FISCAL FOURTH QUARTER JAMESWAY CORP REPORTED A LOSS OF 432 MILLION OR 311 A SHARE FOR THE FOURTH QUARTER ENDED JAN 30 MAINLY REFLECTING A LARGE CHARGE FOR RESTRUCTURING ITS STORE OPERATIONS A YEAR AGO THE SECAUCUS NJ DISCOUNT STORE CHAIN HAD NET INCOME OF 24 MILLION OR 17 CENTS A SHARE FOR THE LATEST QUARTER JAMESWAY SAID IT TOOK AN AFTERTAX CHARGE OF 414 MILLION OR 298 A SHARE TO PROVIDE FOR THE CLOSING OF 13 UNPROFITABLE STORES INCLUDING RELATED CONTINUING LEASE OBLIGATIONS COSTS TO BE INCURRED IN CONNECTION WITH THE REMODELING OF ITS REMAINING STORES AND THE WRITEOFF OF CERTAIN OTHER ASSETS SALES EXCLUDING SALES BY LEASED DEPARTMENT FELL 21 TO 249 MILLION FROM 2545 MILLION FOURTHPERIOD SALES WERE MORE PROMOTIONAL THAN A YEAR AGO AND WERE HURT BY A PARTIAL INTERRUPTION OF THE FLOW OF APPAREL MERCHANDISE DURING NEGOTIATIONS THAT RESULTED IN A THREEYEAR EXTENSION OF THE COMPANY'S CREDIT LINES JAMESWAY SAID SNOWSTORMS AND COLD WEATHER HURT SALES IN THE EARLY PART OF THE CURRENT QUARTER IT ADDED 9303220056 930322 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE COMMERCIAL RAND EXCHANGE RATE EIN CANADIAN DOLLARS FAS OF WEDNESDAY'S CLOSE USING THE FREE MARKET SPOT RATE 9303220055 930322 BUSINESS BRIEF ASAHI BREWERIES LTD JAPANESE FIRM CALLS ITSELF LONGTERM FOSTER'S HOLDER ASAHI BREWERIES LTD OF JAPAN INTENDS TO BE A SHAREHOLDER IN FOSTER'S BREWING GROUP LTD OF AUSTRALIA FOR THE LONG TERM THE JAPANESE COMPANY SAID IT MADE A BRIEF STATEMENT AFTER FOSTER'S SHARES FELL ON THE AUSTRALIAN STOCK MARKET THURSDAY PARTLY ON RUMORS THAT ASAHI PLANS TO REDUCE ITS 17 STAKE IN THE INTERNATIONAL BREWER TO 15 ASAHI DILUTED AN ORIGINAL 20 HOLDING LAST YEAR WHEN IT SOLD SOME OF ITS RIGHTS TO A FOSTER'S SHARE ISSUE ASAHI'S STATEMENT THURSDAY NIGHT DOESN'T COMPLETELY RULE OUT THE POSSIBLE SALE OF SOME FOSTER'S SHARES BUT SAYS THE JAPANESE BREWER CONFIRMS IT IS A LONGTERM HOLDER OF FOSTER'S SHARES 9303220054 930322 BUSINESS BRIEF ANHEUSERBUSCH COS JOINT VENTURE IS SCHEDULED WITH JAPAN'S BIGGEST BREWER ANHEUSERBUSCH COS ST LOUIS SAID IT WILL FORM A JOINT VENTURE WITH JAPAN'S BIGGEST BREWER KIRIN BREWERY CO TO MARKET AND SELL ITS BUDWEISER BRAND IN JAPAN THE VENTURE COMPANY TO BE CALLED BUDWEISER JAPAN CO WILL BE 90OWNED BY ANHEUSER AND 10OWNED BY KIRIN ANHEUSER SAID IT EXPECTS THE ALLIANCE TO BOOST BUD'S MARKET SHARE IN JAPAN ONE OF THE WORLD'S MAJOR BEERCONSUMING NATIONS TO MORE THAN 5 IN 10 YEARS FROM ITS CURRENT 12 ANHEUSER SAID THE VENTURE IS EXPECTED TO START SELLING BUD IN SEPTEMBER WHEN THE COMPANY'S EXISTING LICENSE BREWING CONTRACT WITH SUNTORY LTD EXPIRES ANHEUSER ALSO ENVISIONS THE VENTURE EVENTUALLY SELLING ITS OTHER BEER BRANDS IN JAPAN THE MOVE REPRESENTS ANHEUSER'S FIRST INVESTMENT IN AN INTERNATIONAL JOINT VENTURE THAT WILL SUPPORT THE SALE OF ITS BEERS 9303220053 930322 LAW FREELAND EXECUTIVE ENTERS GUILTY PLEA TO CHARGE OF FRAUD NEW YORK THE HEAD OF A DEFUNCT PENNY STOCK BROKERAGE FIRM PLEADED GUILTY TO OBSTRUCTION OF JUSTICE AND SECURITIES FRAUD IN CONNECTION WITH AN ALLEGED CONSPIRACY TO PROMOTE STOCK IN A PINK SHEET COMPANY FEDERAL PROSECUTORS SAID THAT IN 1990 HOVANNESS K FREELAND WHO HEADED HK FREELAND & CO WAS PAID 200000 UNDER THE TABLE TO SELL THE STOCK OF A COMPANY KNOWN AS US ENVIRONMENTAL INC MR FREELAND WAS ALLEGEDLY PAID BY A STOCK PROMOTER WHO PROSECUTORS SAY SECRETLY CONTROLLED US ENVIRONMENTAL AND WAS MANIPULATING THE MARKET TO INCREASE THE COMPANY'S STOCK PRICE PROSECUTORS SAID MR FREELAND NEVER DISCLOSED HIS ARRANGEMENT WITH THE UNIDENTIFIED STOCK PROMOTER TO HIS CUSTOMERS MR FREELAND WHO PLEADED GUILTY THURSDAY BEFORE US DISTRICT JUDGE ROBERT P PATTERSON JR IN MANHATTAN HAS AGREED TO COOPERATE IN A CONTINUING INVESTIGATION SAID ANDREW TOMBACK THE ASSISTANT US ATTORNEY HANDLING THE CASE MR FREELAND IS SCHEDULED TO BE SENTENCED IN MAY HE COULD FACE TWO TO FOUR YEARS IN JAIL UNDER TERMS OF THE PLEA AGREEMENT WHICH ISN'T BINDING ON JUDGE PATTERSON IN 1991 THE SECURITIES AND EXCHANGE COMMISSION APPOINTED A RECEIVER TO LIQUIDATE HK FREELAND & CO WHICH WAS BASED IN LONG BEACH CALIF AS PART OF A SETTLEMENT OF CHARGES OF SECURITIESLAW VIOLATIONS 9303220052 930322 FORM + FUNCTION BY JOHN PIERSON LINKING NOTEBOOK PCS TO NETWORKS IS MADE EASIER BY A NEW COMPUTER GIZMO OWNERS OF MORE THAN 10 MILLION LAPTOP AND NOTEBOOK COMPUTERS FILL THEIR ELECTRONIC BOXES ON THE ROAD BUT OFTEN NEED TO UNBURDEN INTO LOCALAREA NETWORKS WHEN THEY COME TO REST IT'S MORE THAN A MATTER OF JOINING UP IT'S ALSO A MATTER OF ADAPTING THE NOTEBOOK'S OUTPUT TO THE NETWORK'S A FEW PORTABLE COMPUTERS HAVE BEGUN TO APPEAR WITH INTERNAL ADAPTERS WHICH MAKE CONNECTING AS SIMPLE AS SNAPPING IN A SIMPLE CABLE OR EVEN A PHONE LINE BUT MOST PORTABLE PCS ARE SO SMALL THAT THEY REQUIRE EXTERNAL ADAPTERS UNTIL RECENTLY THESE POCKETSIZE DEVICES COULD BE ATTACHED TO A COMPUTER ONLY WITH TWO SCREWS THAT HAD TO BE ALTERNATELY ENGAGED AND TIGHTENED USUALLY IN A TIGHT SPACE SOMETIMES WHEN TIGHTENED TOO MUCH A SCREW WOULD SNAP OFF NOW XIRCOM IN CALABASAS CALIF IS SELLING ADAPTERS ENCIRCLED BY A BELT A USER TURNS THE BELT TO ENGAGE AND TIGHTEN BOTH SCREWS AT THE SAME TIME RESEMBLING THE TREAD OF A CATERPILLAR TRACTOR THE BELT IS SOFT AND GRABBY ON THE OUTSIDE AND HARD ON THE INSIDE TO MESH WITH TEETH ON THE SCREW HEADS DESIGNED BY WALTER RACZYNSKI ARLINGTON HEIGHTS ILL THE TRACTORBELT ADAPTER IS BUILT TO SLIP WHEN A SCREW IS FULLY SEATED PREVENTING BROKEN SCREWS MR RACZYNSKI SAYS HE HOPES THE DESIGN WILL ALSO BE USED FOR OTHER COMPUTER CONNECTORS THE COMPETITION IS POLITE BUT CRITICAL THE TRACTOR DRIVE IS UNIQUE SAYS STEVEN JOE MARKETING DIRECTOR FOR DLINK SYSTEMS IRVINE CALIF WHICH MAKES CONNECTORS AND OTHER COMPUTER DEVICES BUT WE'VE NEVER HAD ANY COMPLAINTS ABOUT SEPARATE SCREWS IT'S VERY BEAUTIFUL SAYS MARSHALL BEHLING MARKETING DIRECTOR AT ACCTON TECHNOLOGY A CONNECTOR MAKER IN FREMONT CALIF BUT THE CONSUMER'S SPENDING MORE FOR BEAUTY IS IT REALLY WORTH IT SOME XIRCOM ADAPTERS ARE PRICED HIGHER THAN CONVENTIONAL MODELS BUT SOME COST NO MORE LARRY PLUMMER XIRCOM'S VICE PRESIDENT FOR MARKETING CONCEDES THAT AN ADAPTER'S EASE OF CONNECTION IS LESS IMPORTANT THAN ITS SPEED SIZE AND COST THE TRACTOR BELT IS NOT THE MAIN THING SAYS MR PLUMMER BUT IT HAS SOME SEX APPEAL HE ADDS PEOPLE START RIGHT IN PLAYING WITH THE BELT DESIGNERS AND THEIR ALLIES HAVE GIVEN UP FOR NOW TRYING TO GET CONGRESS TO STRENGTHEN PROTECTION FOR DESIGNS THEY SAY THE OPPOSITION IS TOO SMART AND TOO WELL FINANCED LED BY CATERPILLAR THE MAIN PLAYERS IN THE DESIGN COALITION WERE THE BIG THREE US AUTO MAKERS NISSAN MOTOR WESTINGHOUSE ELECTRIC'S KNOLL GROUP SUBSIDIARY AND THE INDUSTRIAL DESIGNERS SOCIETY OF AMERICA THE GROUP WORKED FOR A HALFDECADE TO PERSUADE CONGRESS TO AMONG OTHER THINGS GIVE AUTO MAKERS AN EXCLUSIVE RIGHT FOR 10 YEARS TO PRODUCE AUTOBODY REPLACEMENT PARTS FOR THEIR OWN CARS BUT AN OPPOSING COALITION OF INSURANCE COMPANIES CONSUMER GROUPS AND MAKERS OF AFTERMARKET REPAIR PARTS SUCCEEDED IN CONVINCING ENOUGH LEGISLATORS THAT THE DESIGN BILL WOULD RAISE PRICES AND LIMIT CONSUMER CHOICE THEY HAVE IN EFFECT WON SAYS CHRISTINA GOODRICH A SPOKESWOMAN FOR THE DESIGNERS SOCIETY WE'RE TAKING A SABBATICAL SAYS RITA CASTLE A CATERPILLAR LOBBYIST THE OPPOSITION SAYS IT'S GLAD TO TURN ITS ATTENTION ELSEWHERE BUT THE AFTERMARKET PARTS MAKERS WILL KEEP AN EYE PEELED FOR OTHER DESIGN BILLS SAYS DAVID PARDE PRESIDENT OF THE COALITION FOR AUTO REPAIR EQUALITY PETER NORWOOD HAS AN ORDERLY MIND WHEN THE MIDDLETOWN CONN ARCHITECT CAME DOWNSTAIRS ONE SUNDAY MORNING HE FOUND THE KITCHEN AWASH WITH EMPTY PLASTIC SODA BOTTLES LEFT BY HIS KIDS SEEKING A MORE ELEGANT SOLUTION THAN STAMPING ON THE EMPTIES MR NORWOOD DESIGNED SOME BOTTLES THAT COLLAPSE AND STACK NEATLY RELATIVELY SIMPLE BELLOWS OR ACCORDIONSTYLE COLLAPSIBLE BOTTLES HAVE BEEN ON THE MARKET FOR SEVERAL YEARS THEIR PRODUCERS SAY THEY SAVE SPACE AND MONEY IN TRANSPORTATION AND IN THE RECYCLING BIN OR LANDFILL BUT MR NORWOOD'S DESIGNS HAVE MANY GEOMETRIC FACETS WHICH HE SAYS WOULD MAKE THEM STRONGER AND THEIR SUPERIOR NESTING INSTINCT WOULD ALLOW GROCERY STORES TO COUNT RETURNABLES QUICKLY BY THE INCH HE PREDICTS TOM LOWERY WHO HAS CONTAINER EXPERTISE AS PACKAGING DIRECTOR AT ETHAN ALLEN THE FURNITURE MAKER SAYS MR NORWOOD'S GEOMETRIES INDEED WOULD NEST BETTER THE LEADING MAKER OF BELLOWS BOTTLES COLLAPSIBLE BOTTLE OF AMERICA IN SAN DIEGO SAYS MR NORWOOD'S DESIGNS MIGHT USE LESS PLASTIC AND STORE CARBONATED BEVERAGES BETTER BUT DENNIS LURIE GENERAL PARTNER FORESEES SOME DIFFICULTY IN PRODUCING THE NORWOOD DESIGNS MR NORWOOD CONCEDES THE GREATER COMPLEXITY OF HIS BOTTLES BUT SAYS THEY COULD BE MADE EASILY ENOUGH WITH A COMPUTERIZED MILLING MACHINE 9303220051 930322 BUSINESS BRIEF IMC FERTILIZER GROUP INC TRIAL'S OUTCOME COULD HURT FINANCES COMPANY WARNS IMC FERTILIZER GROUP INC WARNED LATE FRIDAY THAT LOSING A PENDING COURT CASE RELATED TO A 1991 PLANT EXPLOSION COULD LEAVE IT FINANCIALLY VULNERABLE WITHOUT SATISFACTORY SETTLEMENT OR ADDITIONAL INSURANCE PROCEEDS AND SUPPORT FROM ITS LENDERS THE NORTHBROOK ILL FERTILIZER CONCERN SAID IT CANNOT PREDICT WHETHER THESE MATTERS WILL HAVE A MATERIAL ADVERSE EFFECT ON ITS FINANCIAL CONDITION IMC'S TRIAL SCHEDULED TO BEGIN TOMORROW IN HOUSTON IS RELATED TO A MAY 1991 EXPLOSION AT ITS STERLINGTON LA NITROPARAFFIN PLANT THAT KILLED EIGHT AND INJURED 120 PEOPLE IMC OPERATED THE PLANT THAT WAS OWNED BY ANGUS CHEMICAL CO WHICH ALONG WITH ITS INSURER SUED IMC FOR ABOUT 280 MILLION IN ALLEGED PROPERTY LOSS AND BUSINESS INTERRUPTION ANGUS ALSO IS SEEKING PUNITIVE DAMAGES SEPARATELY IMC SAID THAT IN MAY IT WILL CLOSE ITS DIAMMONIUM PHOSPHATE FERTILIZER PLANT NEAR NICHOLS FLA BECAUSE OF SEVERE PRICE EROSION THE CLOSURE WILL IDLE ABOUT 200 EMPLOYEES 9303220050 930322 BUSINESS BRIEF FORD MOTOR CO TENTATIVE ACCORD REACHED IN STRIKE AT A MEXICAN PLANT FORD MOTOR CO DEARBORN MICH SAID A TENTATIVE SETTLEMENT HAS ENDED A STRIKE BY 2100 WORKERS AT FORD'S ASSEMBLY PLANT IN HERMOSILLO MEXICO THE COMPANY ENDED UP LOSING PRODUCTION OF 9800 CARS BECAUSE OF THE STRIKE STILL THE WORK STOPPAGE WASN'T PARTICULARLY PAINFUL FOR FORD WHICH HAD A 92DAY SUPPLY OF THE MERCURY TRACERS AND FORD ESCORTS BUILT IN HERMOSILLO WHEN THE STRIKE BEGAN A 60DAY TO 65DAY SUPPLY IS CONSIDERED NORMAL FORD ALSO ASSEMBLES ESCORTS IN WAYNE MICH THE MEXICAN WORKERS WALKED OUT MARCH 1 AFTER TALKS ON MIDCONTRACT PAY RAISES BROKE DOWN FORD SAID IT WON'T RELEASE DETAILS OF THE TENTATIVE SETTLEMENT UNTIL THIS WEEK WORKERS WERE SEEKING A 20 SALARY INCREASE WHILE FORD WAS OFFERING A 99 RAISE AND THEY REPORTEDLY SETTLED SOMEWHERE IN BETWEEN 9303220049 930322 BUSINESS BRIEF PACIFIC ENTERPRISES RENEWAL OF CASH DIVIDEND TO BE URGED BY CHAIRMAN PACIFIC ENTERPRISES CHAIRMAN WILLIS B WOOD JR SAID IN A LETTER TO SHAREHOLDERS THAT HE WILL RECOMMEND TO THE BOARD THAT THE LOS ANGELES COMPANY RENEW PAYMENT OF CASH DIVIDENDS THAT WERE SUSPENDED IN FEBRUARY 1992 THE QUARTERLY DIVIDEND WAS 44 CENTS A SHARE WHEN IT WAS SUSPENDED IT HAD BEEN CUT FROM 87 CENTS A SHARE BEGINNING WITH A JULY 1991 PAYMENT MR WOOD DIDN'T SAY WHAT LEVEL OF DIVIDEND COULD BE PAID IN A LETTER IN THE 1992 ANNUAL REPORT MR WOOD SAID HE EXPECTS THE COMPANY TO SUBSTANTIALLY REPAY ALL NONUTILITY DEBT IN 1993 EXCEPT DEBT RELATED TO EMPLOYEEBENEFIT PLANS THE REPAYMENT FUNDS WILL COME FROM CASH ON HAND AND FROM OPERATIONS A TAX REFUND AND A PUBLIC STOCK OFFERING WHEN SALE CONDITIONS ARE FAVORABLE MR WOOD SAID HE WILL RECOMMEND THAT DIVIDEND PAYMENTS BE RENEWED WHEN THE STOCK OFFERING IS COMPLETE THE COMPANY'S COMMON CLOSED FRIDAY AT 2350 A SHARE UP 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9303220048 930322 BUSINESS BRIEF MECA SOFTWARE INC FINANCIAL ADVISER RETAINED AFTER THIRDPARTY INQUIRIES MECA SOFTWARE INC FAIRFIELD CONN SAID THAT IN RESPONSE TO INQUIRIES FROM THIRD PARTIES ABOUT STRATEGIC ALTERNATIVES FOR MECA IT HAS RETAINED A FINANCIAL ADVISER MECA SAID BROADVIEW ASSOCIATES WOULD HELP ANALYZE VARIOUS COURSES OF ACTION THE PUBLISHER OF PERSONAL FINANCE AND TAXPREPARATION SOFTWARE DECLINED TO ELABORATE ON WHETHER THE INQUIRIES WERE ABOUT POSSIBLE MERGERS OR ACQUISITIONS PEOPLE CAN DRAW ALL SORTS OF REASONABLE CONCLUSIONS FROM THE ANNOUNCEMENT SAID MECA'S PRESIDENT AND CHIEF EXECUTIVE DANIEL M SCHLEY MECA SOLD ITS SMALLBUSINESS ACCOUNTING SOFTWARE DIVISION IN JANUARY FOR 93 MILLION IN ORDER TO RECAPITALIZE THE COMPANY AND FOCUS ON DEVELOPMENT OF ITS PERSONAL FINANCE AND INCOME TAX SOFTWARE IT ALSO PUBLISHES A HOME LAWYER SOFTWARE PRODUCT MECA SHARES FRIDAY ROSE 25 CENTS TO 8875 IN NATIONAL OVERTHECOUNTER TRADING 9303220047 930322 BUSINESS BRIEF POOL ENERGY SERVICES CO FIRM DROPS PLAN TO OFFER STOCK CITES BETTER OUTLOOK POOL ENERGY SERVICES CO SAID IT WILL WITHDRAW ITS PLANNED PUBLIC OFFERING OF COMMON STOCK SAYING AN IMPROVED OUTLOOK IN 1993 AND BETTER CASH FLOW ELIMINATED THE NEED TO RAISE CAPITAL THROUGH AN EQUITY OFFERING THE COMPANY SAID IN HOUSTON THAT FOURTHQUARTER NET INCOME EXCLUDING AN ASSET WRITEDOWN GREW SIGNIFICANTLY FROM THIRDQUARTER LEVELS BECAUSE OF HIGHER NATURAL GAS PRICES IN THE THIRD QUARTER POOL HAD NET INCOME OF 272000 OR TWO CENTS A SHARE ON REVENUE OF 543 MILLION POOL IS A WELLSERVICING COMPANY CONTINUED HIGHER NATURAL GAS PRICES REASONABLE OIL PRICES AND HEALTHY INTERNATIONAL PERFORMANCE ALL ARE IMPROVING THE COMPANY'S PROSPECTS SAID JIM JONGEBLOED POOL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER 9303220046 930322 BUSINESS BRIEF FUQUA INDUSTRIES INC FIRM HIRES ADVISER TO HELP IN SHEDDING OF SNAPPER UNIT FUQUA INDUSTRIES INC SAID IT RETAINED MERRILL LYNCH & CO TO HELP FIGURE OUT HOW TO REALIZE FAIR VALUE FOR ITS SNAPPER LAWN AND GARDEN EQUIPMENT BUSINESS FUQUA ALSO SAID IN ATLANTA THAT IT PLANS TO CHANGE ITS CORPORATE NAME TO REFLECT ITS STRATEGIC REDIRECTION INTO THE RECREATION AND SPORTS INDUSTRY AND HAS HIRED CONSULTANTS TO HELP IN THE DECISION EARLIER THIS MONTH FUQUA SAID IT SIGNED A LETTER OF INTENT TO BUY DIVERSIFIED PRODUCTS CORP A CLOSELY HELD MAKER OF FITNESS AND RECREATION EQUIPMENT IN OPELIKA ALA TERMS WEREN'T DISCLOSED FREDERICK B BEILSTEIN III FUQUA'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID MERRILL LYNCH'S REVIEW WILL INCLUDE A MYRIAD OF OPTIONS INCLUDING A POSSIBLE SALE OR SPINOFF 9303220045 930322 TECHNOLOGY BRIEF EVEREX SYSTEMS INC A QUARTER OF EMPLOYEES ARE LAID OFF AS PART OF PLAN EVEREX SYSTEMS INC FREMONT CALIF SAID IT LAID OFF ABOUT 25 OF ITS WORK FORCE LEAVING THE MAKER OF PERSONAL COMPUTERS WITH 500 EMPLOYEES THE LAYOFFS ARE PART OF A BROAD PLAN TO REVIVE THE ONCE FASTGROWING COMPANY THAT RECENTLY HAS FALLEN ON HARD TIMES A VICTIM OF THE CONTINUING PRICE WAR IN THE PC INDUSTRY AMONG OTHER THINGS EVEREX SAID IT WILL PRUNE ITS PRODUCT LINES TO CONCENTRATE ON HIGHEND PCS OUTSOURCE SOME PRODUCTION AND TRIM THE NUMBER OF ITS DISTRIBUTORS THE COMPANY ALSO SAID IT SIGNED A LETTER OF INTENT WITH NCR CORP A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO TO HANDLE ONSITE WARRANTY SERVICE AND SUPPORT WORK WORLDWIDE 9303220044 930322 MARKETING BRIEF NOTED MOVIES NEW LINE CINEMA CORP'S TEENAGE MUTANT NINJA TURTLES III WAS THE NO 1 MOVIE AT THE BOX OFFICE THIS WEEKEND CHARTING AN OPENING THREEDAY GROSS OF ABOUT 12 MILLION THE GROSS WAS FAR LOWER THAN THE OPENINGS OF THE PREVIOUS TWO TURTLE MOVIES BUT NEW LINE DISTRIBUTION AND MARKETING CHIEF MITCHELL GOLDMAN SAID THE COMPANY WAS VERY HAPPY TAKING THE NO 2 SPOT WAS POINT OF NO RETURN FROM TIME WARNER INC'S WARNER BROS WHICH TOOK IN 72 MILLION TOBACCO THE CANADIAN GOVERNMENT ORDERED THE CIGARETTE INDUSTRY TO PUT BIGGER AND TOUGHER HEALTH WARNINGS ON CANADIAN CIGARETTE PACKAGES STARTING SEPT 1 THE NEW WARNINGS AMONG THE STRONGEST IN ANY COUNTRY WILL CAUTION THAT SMOKING IS ADDICTIVE AND CAN KILL THERE WILL BE SEVEN WARNINGS IN ALL THAT MUST BE DISPLAYED ON A ROTATING BASIS ON AT LEAST 25 OF ONE SIDE OF A CIGARETTE PACKAGE THE CANADIAN TOBACCO MANUFACTURERS' COUNCIL CALLED THE MEASURES ECONOMIC AND ADMINISTRATIVE HARASSMENT 9303220043 930322 WHO'S NEWS AT&T MOVE MAY TELEGRAPH NEW NCR ROLE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO TOOK A STEP TOWARD TURNING ITS NCR CORP SUBSIDIARY INTO AN AGGRESSIVE MARKETER OF MULTIMEDIA COMPUTER AND COMMUNICATION SYSTEMS BY NAMING A NEW CHIEF AT&T SAID JERRE STEAD 50 YEARS OLD WHO LEFT HIS JOB AS CHIEF EXECUTIVE OFFICER OF SQUARE D CO IN 1991 TO TURN AROUND AT&T'S OFFICE PHONE SWITCH BUSINESS WILL BECOME NCR'S CHIEF EXECUTIVE HE WILL SUCCEED NCR VETERAN GILBERT WILLIAMSON 55 WHO PLANS TO RETIRE MAY 1 AT FIRST GLANCE IT WOULD APPEAR THAT THE APPOINTMENT IS AT&T'S WAY OF REWARDING A HARDWORKING CHARISMATIC EXECUTIVE AS A UNIT PRESIDENT MR STEAD IN ABOUT 18 MONTHS USED COSTCUTTING AND HIGHER PRICING TO STANCH MORE THAN 100 MILLION IN ANNUAL LOSSES AT AT&T'S GLOBAL BUSINESS COMMUNICATION SYSTEMS JERRE WILL ADD A LOT OF EXCITEMENT AMONG THE EMPLOYEES AT NCR SAID JACK B GRUBMAN AN ANALYST AT PAINEWEBBER INC HE'S A RAHRAH EXCITETHETROOPS KIND OF MANAGER AND THE BENEFITS OF HIS STYLE ARE ALREADY EVIDENT AT GBCS BUT COMPANY INSIDERS SAID MR STEAD'S NEW JOB IS ALSO PART OF A BOLD PLAN BY AT&T CHAIRMAN ROBERT E ALLEN TO TRANSFORM THE DAYTON OHIO COMPUTER COMPANY INTO A MARKETER OF PRODUCTS THAT WILL EXPLOIT AT&T'S STRENGTH IN COMMUNICATIONS TECHNOLOGY THIS MORNING AT A NEW YORK NEWS CONFERENCE AT&T MAY OFFER A GLIMPSE OF MR ALLEN'S VISION NCR AT&T'S GBCS AND AT&T'S CHIP BUSINESS AT&T MICROELECTRONICS PLAN TO UNVEIL THE PRODUCT OF THEIR COLLABORATION AN INEXPENSIVE VIDEO SYSTEM THAT LETS OFFICE WORKERS TALK AND SEE ONE ANOTHER AND INTERACTIVELY SWAP COMPUTER INFORMATION WHILE USING THEIR PCS WHILE MR ALLEN APPROVED OF NCR'S PUSH INTO CUTTINGEDGE TECHNOLOGY SUCH AS MASSIVELY PARALLEL PROCESSING AND MOBILE COMPUTING INSIDERS SAID HE WAS FRUSTRATED BY THE COMPUTER COMPANY'S SLUGGISH EFFORTS TO VENTURE BEYOND ITS TRADITIONAL BASE OF RETAIL AND BANKING CUSTOMERS AND TO COLLABORATE WITH OTHER AT&T UNITS MR ALLEN HAS SAID SUCH WORK IS CRITICAL GIVEN THE EVERINCREASING CONVERGENCE OF COMPUTER AND COMMUNICATIONS TECHNOLOGY AND THE INDUSTRY'S RUSH TO DEVELOP AND MARKET MULTIMEDIA PRODUCTS THAT COMBINE VOICE DATA AND TELEVISION FUNCTIONS MR WILLIAMSON WHO WENT TO AT&T AFTER IT COMPLETED ITS 74 BILLION HOSTILE TAKEOVER OF NCR IN 1991 SAID I'VE NEVER HAD ANY INDICATION FROM MR ALLEN OR ANYBODY ELSE THAT THEY WEREN'T HAPPY THAT WOULD SURPRISE ME ABOUT HIS LEAVING AT&T HE SAID I DECIDED THERE'S GOT TO BE MORE TO LIFE THAN 14HOUR DAYS SEVEN DAYS A WEEK HE SAID A SEARCH FIRM WORKING FOR INTERNATIONAL BUSINESS MACHINES CORP CONTACTED HIM IN JANUARY TO TALK ABOUT POTENTIALLY SUCCEEDING IBM CHAIRMAN JOHN AKERS BUT I INDICATED I WAS NOT INTERESTED AT ALL AND NOW OF COURSE NOT HE SAID GIL DECIDED TO LEAVE FUTURE CHANGE AT NCR TO AN AT&T MANAGER AND RETIRE WITH THE SEVERAL MILLION DOLLARS HE MADE FROM THE MERGER SAID ONE INDIVIDUAL CLOSE TO AT&T MR STEAD ON FRIDAY PRAISED MR WILLIAMSON'S STEWARDSHIP THAT CAME AFTER AT&T'S JOLTING TAKEOVER I WANT TO KEEP MARCHING ON THE PLAN PUT IN PLACE BY GIL HE SAID IT CONTINUES TO BE QUITE SUCCESSFUL BUT HE ACKNOWLEDGED THAT AT&T PLANNED TO MERGE EVENTUALLY HIS OFFICE COMMUNICATION SYSTEMS UNIT AND NCR COMBINING THE TWO IN A FOUR TO SIXYEAR TIME FRAME IS PROBABLY A GOOD THOUGHT AS THE TWO TECHNOLOGIES CONTINUE TO COME TOGETHER MR STEAD SAID ADDING SUCH ACTION IS NOT IN AT&T'S IMMEDIATE PLANS TODAY'S PLANNED ANNOUNCEMENT SHOWS WHERE AT&T AND NCR ARE HEADED AT&T'S NEW SYSTEM IS NOT THE FIRST DESKTOP VIDEO SYSTEM ON THE MARKET BUT THE SYSTEM WHICH IS ACTUALLY A 6995 PACKAGE OF COMPUTER BOARDS SOFTWARE AND TV CAMERA IS THE FIRST PRODUCT THAT COMBINES AT&T'S EXPERTISE AS AN OFFICE COMMUNICATION SYSTEMS SUPPLIER A COMPUTER MANUFACTURER AND BUILDER OF CUSTOMIZED CHIPS THE NEW SYSTEM PACKAGES NCR COMPUTING FUNCTIONS WITH PHONE NETWORKING SOFTWARE AND USES AS ITS BRAIN A NEW THREECHIP DEVICE CALLED A VIDEO CODEC THIS COMPRESSES A LIVE FULLMOTION TELEVISION PICTURE OF THE DESK WORKER SO IT CAN BE SENT TO A COLLEAGUE'S DESKTOP OVER REGULAR OFFICE DATA NETWORK USERS CAN EVEN WORK INTERACTIVELY BY DRAWING ON THEIR SCREENS WITH A STYLUS AIDING ENGINEERING AND DESIGN WORK 9303220042 930322 BONN'S GLASS LEMON ITS NEW BUNDESTAG IS STILL UNDER REPAIR MONTHS AFTER THE SOUND SYSTEM SILENCED KOHL NO ONE STEPS FORWARD TO REOPEN BUILDING BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN IT'S BAD ENOUGH THAT GERMANY'S ULTRAMODERN NEW PARLIAMENT WAS BUILT IN THE WRONG CITY NOW IT DOESN'T WORK AND ACCORDING TO A RECENT GOVERNMENT ESTIMATE IT MAY COST MILLIONS TO FIX THE 256MILLION MARK 153 MILLION GLASSANDSTEEL BUNDESTAG BUILDING OPENED WITH MUCH FANFARE LAST AUTUMN EVEN THOUGH BONN'S DAYS AS GERMANY'S PROVISIONAL CAPITAL WERE ALREADY NUMBERED WITH BERLIN THE PREFERRED LOCATION THEN PEOPLE STARTED WALKING INTO THE GLASS WALLS THE PARQUET WAS CROOKED IN PLACES LEGISLATORS FOUND THE WHEELCHAIR RAMPS TOO STEEP AND A LEAK SPRUNG IN THE LOBBY CEILING MAKING THE BUILDING'S NICKNAME THE AQUARIUM EVEN MORE APT THE FEDERAL CONSTRUCTION DIRECTORATE HAS RECEIVED AROUND 1000 COMPLAINTS ABOUT THE BUILDING NOT ALL ARE STRUCTURAL PHOTOGRAPHERS FOR EXAMPLE GROUSED THAT A GRAY TELEVISION MONITOR HANGING NEAR THE PODIUM RUINS THEIR PICTURES THE FINAL BLOW HOWEVER CAME WHEN THE 65 MILLION MARK MICROPHONE SYSTEM CRASHED DURING A NOVEMBER BUDGET DEBATE CHANCELLOR HELMUT KOHL NEVER KNOWN FOR HIS SOFT VOICE WAS LEFT MUTED ON THE PODIUM WHEN THE COMPUTERGUIDED SOUND SYSTEM BLINKED ONE TWO THREE CAN YOU HEAR ME VENTURED A PUZZLED MR KOHL TAPPING THE MICROPHONE AND GAZING OUT ON HIS RESTIVE AUDIENCE LAWMAKERS RETREATED FROM THE CHAMBER TO THE CONVERTED WATERWORKS BUILDING THEY HAD JUST ABANDONED AND THEY HAVEN'T BEEN BACK SINCE THEY VOWED TO RETURN TO THEIR PLUSH NEW SWIVEL CHAIRS A FEATURE THAT APPARENTLY HAS DRAWN FEW COMPLAINTS AS SOON AS THE SOUND PROBLEM WAS SOLVED BUT THAT HAS PROVED TOUGHER THAN ANTICIPATED FIVE MONTHS LATER SIEMENS AG BUILDER OF THE MICROPHONE SYSTEM INSISTS IT WAS JUST FOLLOWING BLUEPRINTS THE ARCHITECTS AND BUILDERS CLAIM THE SYSTEM ITSELF IS FAULTY SO FAR NOBODY'S WILLING TO PAY FOR REPAIRS WHICH OFFICIALS RECENTLY ESTIMATED AT A MINIMUM OF 15 MILLION MARKS EVEN IF THE SYSTEM IS SOON FIXED LAWMAKERS DON'T EXPECT TO RETURN BEFORE AUTUMN BUT MICROPHONES ARE JUST ONE HEADACHE THE BUILDING'S DRAMATIC USE OF GLASS CREATES SAFETY HAZARDS SOME VISITORS REPORTEDLY GOT BLOODY NOSES FROM BASHING INTO TRANSPARENT BARRIERS AND MAINTENANCE CREWS HAD TO RUSH TO PUT UP CAUTION SIGNS AND WRAP BULKY BUMPERS AROUND MANY SHARP CORNERS HANDICAPPED LAWMAKERS COMPLAINED THAT THE WHEELCHAIR RAMP LEADING TO THE SPEAKER'S PODIUM IS FAR STEEPER THAN LEGALLY PERMITTED UNDER GERMAN BUILDING CODES THERE ARE GYMNASTS WHO COULD MANAGE IT GRUMPED ONE PARLIAMENT MEMBER WHO USES A WHEELCHAIR STILL IT'S THE ACOUSTICS THAT ARE KEEPING THE CHAMBER SILENT PART OF THE PROBLEM IS THE HALL'S ROUND LAYOUT AND THE LACK OF SOUNDABSORBING SURFACES THE GLASS WALLS AND HIGH CEILINGS CREATE ECHOS OFTEN CAUSING THE SOUND SYSTEM TO ERUPT IN EARSPLITTING FEEDBACK ONE PROPOSED SOLUTION IS TO PAD THE BACKSIDE OF THE GERMAN EAGLE DANGLING ABOVE THE SPEAKER'S PODIUM JUST A YEAR AGO THE BUNDESTAG'S AIRY FEEL WAS BEING PRAISED BY MANY AS A SYMBOL OF POSTWAR GERMANY'S OPENNESS TO THE WORLD CARVED OUT OF THE OLD BUNDESTAG BUILDINGS ALONG THE RHINE THE NEW PARLIAMENT WAS SUPPOSED TO ANCHOR A RENOVATED GOVERNMENT COMPLEX NOW LIKE BONN ITSELF ITS FUTURE LOOKS UNCERTAIN EVEN THE BUILDING'S NEW BAR HAS BEEN BLASTED FOR BEING TOO LOUD AND COLD WITH TOO MUCH CHROME SOME EVEN COMPLAINED THAT THE BARSTOOLS WERE TOO HIGH MONICA HOUSTONWAESCH CONTRIBUTED TO THIS ARTICLE 9303220041 930322 BUSINESS BRIEF TOKOS MEDICAL CORP PLAN IS ENACTED TO FEND OFF UNWANTED TAKEOVER EFFORTS TOKOS MEDICAL CORP DIRECTORS ENACTED A SHAREHOLDER RIGHTS PLAN TO FEND OFF ANY UNWANTED TAKEOVER OFFERS JUST A DAY AFTER THE COMPANY STOCK DROPPED SIGNIFICANTLY THE SANTA ANA CALIF COMPANY DISTRIBUTED A PACKAGE OF RIGHTS INCLUDING THE RIGHT OF EXISTING HOLDERS TO BUY STOCK AT HALF ITS TRADING PRICE IF A PERSON OR GROUP BUYS OR OFFERS TO BUY 20 OR MORE OF TOKOS STOCK THE ACQUIRER SEEKING THAT STAKE WOULD BE BARRED FROM BUYING STOCK AT HALF PRICE OTHER RIGHTS WOULD FURTHER COMPLICATE THE ACQUIRER'S AIMS AND PROVIDE THE TOKOS BOARD WITH TIME TO CONSIDER ITS OPTIONS IF IT CHOOSES THE BOARD CAN REDEEM THE RIGHTS AT A PENNY EACH WITHIN 10 DAYS OF ANY TAKEOVER EFFORT ON THURSDAY TOKOS STOCK PRICE FELL 21 AFTER THE PROVIDER OF HOMEMONITORING SERVICES TO PREGNANT WOMEN SAID IT HAD EXPERIENCED PROBLEMS THAT WOULD DAMP EARNINGS THE EXERCISE PRICE IS WELL ABOVE FRIDAY'S OVERTHECOUNTER CLOSING PRICE OF 6875 UP 125 CENTS TOKOS SAID THE RIGHTS ARE NOT BEING DISTRIBUTED IN RESPONSE TO ANY SPECIFIC EFFORT TO ACQUIRE CONTROL OF THE COMPANY A SPOKESMAN SAID THE RIGHTS DISTRIBUTION HAS BEEN PLANNED FOR SOME TIME 9303220040 930322 BUSINESS BRIEF SEAGULL ENERGY CORP FIRM DECLARES 2FOR1 SPLIT AFTER MAY ANNUAL MEETING SEAGULL ENERGY CORP HOUSTON SAID IT DECLARED A 2FOR1 STOCK SPLIT SUBJECT TO SHAREHOLDER APPROVAL OF AN INCREASE IN THE AUTHORIZED NUMBER OF COMMON SHARES TO 100 MILLION FROM 40 MILLION SEAGULL HOLDERS WILL VOTE ON THE PROPOSED INCREASE IN SHARES AT THE COMPANY'S ANNUAL MEETING MAY 11 IF THE INCREASE IS APPROVED THE SPLIT WILL BE EFFECTED THROUGH A 100 STOCK DIVIDEND SHORTLY AFTER THE ANNUAL MEETING THE COMPANY SAID SEAGULL ENERGY CURRENTLY HAS 179 MILLION SHARES OUTSTANDING SEAGULL ENERGY SAID IT VIEWS THE SPLIT AS A VOTE OF CONFIDENCE FROM ITS BOARD IN THE COMPANY'S STRATEGY AND OUTLOOK MORE SHARES AUTHORIZED WILL GIVE US GREATER OPERATIONAL AND FINANCIAL FLEXIBILITY SAID CHAIRMAN BARRY J GALT IT WILL INCREASE TRADING LIQUIDITY AND THE RESULTING LOWER SHARE PRICE WILL ALLOW SOME INVESTORS TO BUY THE SHARES MORE READILY HE ADDED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY SEAGULL SHARES CLOSED AT 4350 DOWN 125 CENTS 9303220039 930322 BUSINESS BRIEF COCACOLA CO BOTTLER OPENS NEW PLANTS IN POLAND CZECHOSLOVAKIA COCACOLA CO SAID IT OPENED TWO NEW PRODUCTION PLANTS IN POLAND AND ITS BOTTLING PARTNER COCACOLA AMATIL LTD OPENED A THIRD FACILITY IN PRAGUE IN THE CZECH REPUBLIC COCACOLA WHICH MOUNTED A MAJOR DRIVE INTO EASTERN EUROPE NEARLY TWO YEARS AGO SAID IT HAS BECOME THE LEADING SOFT DRINK PRODUCER IN POLAND WHICH HAD LONG BEEN DOMINATED BY RIVAL PEPSICO INC COKE HAS BEEN OPENING PLANTS AND ADDING SALES STAFF IN THE FORMER COMMUNIST LANDS AS PART OF A THREEYEAR 1 BILLION INVESTMENT PUSH TO EXPAND EASTWARD IN A STATEMENT COKE CHAIRMAN ROBERTO C GOIZUETA SAID THAT COKE NOW OUTSELLS PEPSI NEARLY 2TO1 IN THE COMBINED MARKETS THAT OPENED UP AFTER THE FALL OF THE BERLIN WALL INCLUDING THE FORMER SOVIET UNION AND EASTERN GERMANY COKE HAD LITTLE PRESENCE IN THE REGION AS RECENTLY AS THREE YEARS AGO PEPSI OFFICIALS COULDN'T BE REACHED FOR COMMENT IN PRAGUE COCACOLA SAID ITS BOTTLING PARTNER INVESTED 28 MILLION TO DEVELOP THE NEWLY RENOVATED SOFT DRINK PLANT WHICH IT ACQUIRED LAST MARCH THE POLISH PLANTS COST A TOTAL OF 51 MILLION COKE SAID 9303220038 930322 WHAT'S NEWS WORLDWIDE RUSSIA'S PARLIAMENT FOUGHT YELTSIN'S DECLARATION OF PRESIDENTIAL RULE THE STANDING LEGISLATURE IN A SPECIAL SESSION TOOK THE FIRST STEPS TOWARD IMPEACHING THE PRESIDENT AFTER HE WENT ON NATIONWIDE TELEVISION SATURDAY TO DECLARE EMERGENCY RULE AND CALL FOR AN APRIL 25 REFERENDUM ON WHO IS TO RULE RUSSIA THE SUCCESS OF YELTSIN'S GAMBLE AN ATTEMPT TO OVERTURN PARLIAMENT'S RECENT VOTE STRIPPING HIM OF MOST OF HIS POWERS DEPENDS ON POPULAR SUPPORT AND IF NOT THE BACKING OF THE MILITARY AT LEAST ITS CONTINUED RESOLVE TO STAY OUT OF POLITICS THE WHITE HOUSE QUICKLY ENDORSED YELTSIN'S MOVES US OFFICIALS WERE RELIEVED YELTSIN DID NOT SUSPEND CIVIL LIBERTIES OR MOVE TO DISSOLVE PARLIAMENT JUSTICE WHITE'S PLAN TO RETIRE PRESENTS THE CLINTON ADMINISTRATION WITH THE CHOICE OF PICKING A SUCCESSOR WHO WILL BE A COALITION BUILDER TO NUDGE THE SUPREME COURT TO THE CENTER OR A WARRIOR TO RALLY THE FEEBLE LIBERAL BLOC WHITE A JUSTICE FOR 31 YEARS SAID FRIDAY HE WILL LEAVE THE COURT AT THE END OF ITS TERM THIS SUMMER FRENCH CONSERVATIVE PARTIES MADE A STRONG SHOWING IN LEGISLATIVE ELECTIONS SETTING THE SCENE FOR A STRUGGLE WITH SOCIALIST PRESIDENT MITTERRAND PROJECTIONS SHOWED A CONSERVATIVE COALITION WON 40 OF THE FIRSTROUND VOTE WHICH COULD RESULT IN ITS CAPTURING 80 OF THE NATIONAL ASSEMBLY'S SEATS NEXT SUNDAY A UN COMMANDER IN BOSNIA SAID HE REACHED AGREEMENT WITH SERB FORCES TO ALLOW SERBS TO LEAVE TUZLA IN RETURN FOR THE EVACUATION OF MORE REFUGEES FROM THE MUSLIM ENCLAVE OF SREBRENICA ON FRIDAY AN AID CONVOY REACHED SREBRENICA AFTER A LONG DELAY AT THE SERBIAN BORDER AND 700 MUSLIM REFUGEES WERE TAKEN TO TUZLA SATURDAY SALVADOR OPPOSITION LEADERS ATTACKED AN AMNESTY FOR WAR CRIMINALS PASSED SATURDAY BY A LEGISLATURE DOMINATED BY THE RIGHTWING ARENA PARTY THE ARCHBISHOP OF SAN SALVADOR SAID THE GOVERNMENT WAS TRYING TO SWEEP ATROCITIES COMMITTED IN THE COUNTRY'S 12YEAR CIVIL WAR MOST OF WHICH A UN PANEL BLAMED ON THE MILITARY UNDER THE RUG A KEY SOMALI MILITIA LEADER RETURNED TO UNSPONSORED PEACE TALKS A US MILITARY SPOKESMAN SAID THE LEADER AIDID HAD WITHDRAWN TO PROTEST A SETBACK TO AN ALLY DURING CLAN FIGHTING FOR CONTROL OF KISMAYU SEPARATELY THE RED CROSS SAID IT PULLED ITS STAFF FROM NORTHERN MOGADISHU AFTER GUNMEN ROBBED AN OFFICE OF 180000 SATURDAY ISRAELI SOLDIERS KILLED TWO PALESTINIANS IN THE GAZA STRIP ADDING TO THE DEATH TOLL IN THE MOST VIOLENT MONTH SINCE THE GOVERNMENT OF PRIME MINISTER RABIN WAS ELECTED IN JUNE ON SATURDAY TWO ISRAELI SOLDIERS WERE KILLED BY GUNMEN IN SEPARATE AMBUSHES AND TWO PALESTINIANS WERE KILLED IN CLASHES WITH TROOPS IN THE OCCUPIED TERRITORIES GEORGIA AND ABKHAZIAN REBELS AGREED ON A CEASEFIRE TO REMOVE BODIES OF THEIR FIGHTERS KILLED IN SEVERAL DAYS OF HEAVY FIGHTING LAST WEEK AROUND SUKHUMI CAPITAL OF A SECESSIONIST REGION OF GEORGIA ON FRIDAY GEORGIA SAID IT SHOT DOWN A RUSSIAN WARPLANE KILLING ITS PILOT FURTHER HEIGHTENING TENSIONS BETWEEN MOSCOW AND TBILISI THE CLINTON ADMINISTRATION APPROVED OREGON'S PLAN TO EXPAND MEDICAID HEALTH BENEFITS TO POOR PEOPLE BY CUTTING BACK ON COVERAGE FOR MEDICAL PROCEDURES AND SERVICES RANKED LOW ON A COSTEFFECTIVENESS SCALE BUT THE OREGON APPROACH PROBABLY WON'T SPREAD TO MANY OTHER STATES BECAUSE IT IS CONSIDERED POLITICALLY RISKY EGYPT HAS DECIDED TO RETRY SHEIK OMAR ABDELRAHMAN WHO PREACHED AT MOSQUES ATTENDED BY THE SUSPECTS CHARGED IN THE WORLD TRADE CENTER BOMBING ON CHARGES OF INCITING ANTIGOVERNMENT VIOLENCE IN 1989 EGYPTIAN AUTHORITIES ALSO PREVENTED ONE OF THE SHEIK'S WIVES AND FOUR CHILDREN FROM LEAVING THE COUNTRY THE IRISH REPUBLICAN ARMY CLAIMED RESPONSIBILITY FOR TWO BOMBS THAT EXPLODED SATURDAY IN A TOWN IN NORTHWEST ENGLAND KILLING ONE PERSON AND INJURING AT LEAST 56 POLICE SPECULATE THAT THE BOMBING OF THE BUSY SHOPPING STREET IN WARRINGTON MAY HAVE BEEN IN RETALIATION FOR THE ARRESTS OF TWO IRA SUSPECTS IN A BOMBING LAST MONTH ITALY'S AGRICULTURE MINISTER RESIGNED AFTER LEARNING HE WAS UNDER INVESTIGATION IN A WIDENING CRACKDOWN ON CORRUPTION HE WAS THE FOURTH CABINET MINISTER TO QUIT THE INCREASINGLY SHAKY AMATO GOVERNMENT SINCE THE INQUIRY BEGAN 9303220037 930322 ABREAST OF THE MARKET WHY CYCLICAL STOCKS MAY BE POISED FOR A NEW SURGE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR MONTHS ECONOMICALLY SENSITIVE STOCKS HAVE BEEN HOTLY PURSUED BY INVESTORS SCRAMBLING TO PROFIT FROM A REBOUND IN BUSINESS SINCE OCTOBER MORGAN STANLEY'S INDEX OF THESE CYCLICAL STOCKS HAS RALLIED 148 BESTING STANDARD & POOR'S 500STOCK INDEX UP 78 AND LEAVING BIG CONSUMER STOCKS DOWN 04 FAR BEHIND THOUGH CYCLICAL STOCKS HAVE SURGED ALMOST 50 SINCE THE RECESSION ENDED IN MARCH 1991 MANY STOCK ANALYSTS AND MONEY MANAGERS THINK MORE GAINS LIE AHEAD THE GAINS YOU HAVE SEEN IN CYCLICAL STOCKS ARE JUST A SMALL BLIP DECLARES DONALD SMITH WHO MANAGES 800 MILLION AT AN INVESTMENT FIRM THAT BEARS HIS NAME HIS PORTFOLIO HEAVY WITH CYCLICALS SOARED 20 LAST YEAR HANDILY BEATING THE BROADER MARKET'S 75 ADVANCE AND IT'S UP ANOTHER 135 SO FAR THIS YEAR UNTIL NOW MR SMITH SAYS CYCLICAL STOCKS HAVE BEEN BUOYED BY MERELY A PICKUP IN CUSTOMER ORDERS FOR BASIC MATERIALS AND INDUSTRIAL PRODUCTS BUT EVENTUALLY YOU ARE GOING TO GET VOLUME GROWTH AND PRICE INCREASES AND THEN EARNINGS WILL EXPLODE HE SAYS INDEED AS SOME LUMBER COMPANIES ARE HAPPILY DISCOVERING PRICE BOOSTS CAN DO WONDERS FOR EARNINGS LAST WEEK POPE & TALBOT A PORTLAND ORE PAPER PULP AND WOOD PRODUCTS CONCERN SAID IT EXPECTS ITS FIRSTQUARTER PROFIT TO EXCEED 75 CENTS A SHARE UP FROM ONE CENT A YEAR AGO THE BIG GAIN IS DUE TO SOARING LUMBER PRICES MR SMITH THINKS MOST CYCLICAL STOCKS ARE IN THE EXPECTATION STAGE WAITING FOR THE ECONOMIC RECOVERY TO TRANSLATE INTO HIGHER EARNINGS BUT AS PROFITS START GROWING CASH FLOW RISES AND DIVIDENDS ARE INCREASED HE BELIEVES MANY OF THESE STOCKS COULD RALLY JUMPING AS MUCH AS FIVE TO 10 TIMES OVER THE NEXT FIVE YEARS ONE REASON MONEY MANAGERS SUCH AS MR SMITH ARE SO BULLISH ON CYCLICAL STOCKS IS THAT THEY HAVE BEEN DEPRESSED FOR THREE YEARS OR MORE AND ARE STILL UNLOVED BY MOST INSTITUTIONAL INVESTORS DESPITE THEIR RECENT PRICE RUNUP MR SMITH SAYS ECONOMICALLY SENSITIVE STOCKS ARE STILL CHEAP YOU CAN BUY THE WHOLE INTEGRATED STEEL INDUSTRY FOR WHAT YOU WOULD HAVE TO PAY FOR CISCO SYSTEMS A SOFTWARE COMPANY SAYS MR SMITH BY WAY OF ILLUSTRATION CISCO'S MARKET VALUE OF 55 BILLION IS MORE THAN THE COMBINED 48 BILLION TOTAL FOR BETHLEHEM STEEL INLAND STEEL AND USXUS STEEL GROUP OTHER ANALYSTS AGREE CYCLICAL STOCKS HAVE A LONG WAY TO GO BEFORE THEY CATCH UP TO WHERE THEY WERE BEFORE THE SLIDE SAYS THOMAS MCMANUS A MARKET ANALYST AT MORGAN STANLEY IN PREVIOUS RECESSIONS CYCLICAL STOCKS FELL FAST AND BOUNCED BACK QUICKLY BUT IN AND FOLLOWING THE MOST RECENT RECESSION MR MCMANUS SAYS ECONOMICALLY SENSITIVE STOCKS HAVE BEEN IN A LONG BASING PROCESS MR MCMANUS FORESEES FURTHER GAINS FOR THESE STOCKS AS CONSUMERS REGAIN THEIR CONFIDENCE ONE WAY THIS RECOVERY IS DIFFERENT FROM PAST ONES IS THAT IT HAS BEEN MARKED BY THREE SHARP DOWNTURNS IN CONSUMER CONFIDENCE EACH TIME THE PUBLIC'S FAITH IN THE ECONOMY HAS WAVERED CYCLICAL STOCKS HAVE BEEN HIT AS LONG AS THE ECONOMY ISN'T CREATING LOTS OF NEW JOBS CONSUMERS WILL BE RELUCTANT TO SPEND STIFLING PROFITS AT BIG CYCLICAL COMPANIES MR MCMANUS SAYS BUT ONCE CONSUMER CONFIDENCE RETURNS CYCLICAL STOCKS COULD SOAR AN UPTURN IN THE EUROPEAN AND JAPANESE ECONOMIES COULD ADD FUEL TO THE RALLY BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY SAYS THAT UNTIL NOW CYCLICAL COMPANIES HAVE BEEN REPORTING BETTER EARNINGS WITHOUT THE HELP OF EUROPE WHICH IS STILL MIRED IN A RECESSION BUT NEXT YEAR WHEN EUROPE IS BACK ON A GROWTH CURVE AND JAPAN IS DOING BETTER YOU COULD SEE BOTH VOLUME IMPROVEMENTS AND PRICE INCREASES HE SAYS TO PLAY THE CYCLICAL RALLY MR WIEN SUGGESTS THAT INVESTORS LOOK FOR STOCKS OF COMPANIES THAT HAVE THE POWER TO RAISE THEIR PRICES WHEN DEMAND PICKS UP SINCE MANY CYCLICAL COMPANIES HAVE UNDERGONE MASSIVE RESTRUCTURINGS OVER THE PAST DECADE EVEN THE SLIGHTEST BIT OF VOLUME IMPROVEMENT SHOULD RESULT IN SIGNIFICANTLY BETTER PROFITS FOR MOST COMPANIES SAYS MR WIEN BUT THE GREATEST BENEFICIARIES WILL BE COMPANIES THAT CAN START CHARGING CUSTOMERS MORE THAT'S WHY MR WIEN URGES INVESTORS TO STUFF THEIR PORTFOLIOS WITH AUTO RAIL SEMICONDUCTOR CHEMICAL PAPER AND TO A LESSER EXTENT COPPER STOCKS HE IS ALSO INTRIGUED BY OIL STOCKS EVEN THOUGH THERE'S STILL A GLUT OF OIL IN THE WORLD SOME ANALYSTS SUCH AS NATWEST SECURITIES' PETER CANELO THINK THAT CYCLICAL STOCKS WILL GET A BOOST FROM QUICKENING INFLATION NOT ONLY HAVE COMMODITY PRICES BEEN RALLYING BUT TWO RECENT REPORTS ON CONSUMER AND PRODUCER PRICES SUGGEST THAT COMPANIES ARE STARTING TO HAVE MORE OF A SAY WHEN IT COMES TO PRICING THEIR PRODUCTS AS LONG AS YOU HAVE INFLATION WITH NO FED TIGHTENING THE CYCLICALS ARE THE PLACE TO BE AND THE DOW JONES INDUSTRIAL AVERAGE IS THE INDEX TO BUY SAYS MR CANELO REFERRING TO THE DOW'S CONTINGENT OF INDUSTRIAL BLUECHIP STOCKS NOT ALL ANALYSTS ARE AS BULLISH NATURALLY STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO SAYS THAT EVEN THOUGH CYCLICAL STOCKS HAVE BEEN RALLYING EARNINGS FROM THIS GROUP HAVEN'T BEEN PARTICULARLY OUTSTANDING IN THE FOURTH QUARTER 37 OF CYCLICAL COMPANIES REPORTED EARNINGS HIGHER THAN ANALYSTS' AVERAGE ESTIMATES MR RESNICK SAYS WHILE 52 OF THE 500 S&P STOCKS HAD POSITIVE EARNINGS SURPRISES MR RESNICK WAS PLANNING ON INCREASING HIS EXPOSURE TO CYCLICAL STOCKS EARLIER THIS YEAR BUT HE CHANGED HIS MIND AFTER PRESIDENT CLINTON UNVEILED HIS ECONOMIC PLAN THE CLINTON PLAN IS AN ANTICYCLICAL PROGRAM SAYS MR RESNICK WHILE HE THINKS CYCLICAL COMPANIES THAT ARE GLOBALLY COMPETITIVE WILL OUTPERFORM THE MARKET IN THE LONG RUN FOR INVESTORS IT'S A QUESTION OF HOW PATIENT YOU WANT TO BE HE SAYS STOCKS ENDED MIXED IN HEAVY TRADING EVEN THOUGH DECLINING STOCKS BEAT ADVANCERS 1059 TO 808 THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 594 POINTS TO 347158 STANDARD & POOR'S 500STOCK INDEX FELL 171 TO 45018 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 094 TO 24818 THE QUARTERLY EXPIRATION OF STOCKINDEX FUTURES STOCKINDEX OPTIONS AND OPTIONS ON INDIVIDUAL STOCKS COMMONLY KNOWN AS TRIPLE WITCHING ACCOUNTED FOR A SURGE IN TRADING ACTIVITY FOR THE WEEK THE INDUSTRIAL AVERAGE CLIMBED 128 WHILE THE S&P 500 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX WERE NEARLY UNCHANGED GOLD STOCKS WERE AMONG THE BRIGHT SPOTS IN THE MARKET HOMESTAKE MINING ROSE 3/8 TO 13 3/4 AND BATTLE MOUNTAIN GOLD INCHED UP 3/8 TO 7 BUT HEALTH CARE STOCKS CONTINUED TO BE LOSERS MERCK SLIPPED 1/4 TO 36 1/8 PFIZER FELL 5/8 TO 58 3/4 AND SCHERINGPLOUGH DROPPED 3/4 TO 57 3/8 KEMPER JUMPED 4 7/8 TO 41 1/2 THE INSURANCE AND FINANCIAL SERVICES CONCERN AGREED TO SHED ITS REINSURANCE AND RISKMANAGEMENT BUSINESSES USF&G GAINED 7/8 TO 16 7/8 INVESTORS HAVE BEEN BIDDING UP THE STOCK SINCE THE INSURER SAID LAST WEEK THAT ESTIMATES OF FIVE CENTS A SHARE FOR FIRSTQUARTER EARNINGS MIGHT BE CONSERVATIVE 9303220036 930322 INTERNATIONAL JAPAN'S TRADE SURPLUS WITH US LIKELY IS WIDER IF OUTPUT ELSEWHERE IS INCLUDED BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AFTER STRINGING NEW FACTORIES ACROSS ASIA IN THE PAST DECADE MAJOR JAPANESE CORPORATIONS NOW SHIP ACROSS THE PACIFIC BILLIONS OF DOLLARS WORTH OF GOODS THAT NEVER SHOW UP IN THE JAPANUS TRADE ACCOUNTS CONSIDER THE ODYSSEY OF SANYO ELECTRIC CO'S VIDEOCASSETTE RECORDER UNTIL LAST YEAR ALL SANYOBRAND VCRS SOLD IN THE US WERE MADE IN JAPAN THEN THE CONSUMER ELECTRONICS MAKER RETOOLED ONE OF ITS MAJOR EXPORTING FACTORIES IN OSAKA TO CONCENTRATE ON PRODUCING HIGHEND MULTIFUNCTION MODELS FOR ITS DOMESTIC MARKET TO KEEP SUPPLYING LOWEND VCRS TO THE US THE COMPANY OPENED A VCR FACTORY IN CIMANGGIS BOGOR INDONESIA SANYO PLANS TO SHIP MORE THAN 700000 VCRS THIS YEAR FROM THE JAKARTA AREA TO NORTH AMERICASALES THAT WILL REGISTER AS INDONESIAN EXPORTS NOT JAPANESE SONY CORP MEANWHILE HAS BUILT A TOTAL OF 12 FACTORIES SINCE 1984 IN MALAYSIA SINGAPORE THAILAND AND INDONESIA CONCENTRATING ON AUDIO AND VIDEO EQUIPMENT THOSE FACTORIES NOW ACCOUNT FOR 15 OF SONY'S WORLDWIDE PRODUCTION AND NEARLY HALF OF THE SONY PRODUCTS MADE IN SOUTHEAST ASIA GO TO THE US AND MINEBEA CO EXPORTS TO AMERICA A LARGE CHUNK OF THE PERSONALCOMPUTER PARTS MADE AT ITS FACTORY IN THAILAND'S LOP BURI PROVINCE IT'S FRUITLESS TO LOOK AT TRADE ON A BILATERAL BASIS ARGUES KENNETH S COURTIS SENIOR ECONOMIST AT DEUTSCHE BANK CAPITAL MARKETS ASIA LTD YOU'VE GOT TO LOOK AT HOW JAPAN HAS HARNESSED ASIA IT IS DIFFICULT TO MEASURE THE TRUE EFFECT OF THE SHIFT BUT MR COURTIS ESTIMATES THAT 15 BILLION OF JAPAN'S TRADE SURPLUS OF THE EARLY 1980S HAS BEEN RELOCATED TO SOUTHEAST ASIA MEASURED ON THAT BASIS HE SAYS JAPAN'S TRADE SURPLUS WITH THE US IN 1992 WOULD HAVE BEEN NEARLY 60 BILLION JAPANESE GOVERNMENT AND BUSINESS LEADERS SAY THERE IS NO STRATEGY TO EVADE TRADE TENSIONS THE OVERSEAS SHIFT IS IN RESPONSE TO INCREASED COSTS OF PRODUCTION IN JAPAN SAYS A SANYO SPOKESMAN INDEED THE ESTIMATED 40 BILLION THAT JAPAN INVESTED IN ASIA IN THE PAST EIGHT YEARS WAS THE LOGICAL RESULT OF SEVERAL TRENDS THE DOUBLING IN THE VALUE OF THE YEN AGAINST THE DOLLAR AFTER THE 1985 PLAZA ACCORD MADE PRODUCTION IN JAPAN MUCH LESS ECONOMICAL WITH A MATURING ECONOMY AND RISING WAGES JAPANESE MANUFACTURERS FACED THE SAME PRESSURES THAT FORCED AMERICAN PRODUCERS TO MOVE OFFSHORE YEARS AGO IN ADDITION THE SANYO OFFICIAL NOTES THE MAJORITY OF THE SHIFT OF PRODUCTION TO AREAS SUCH AS SOUTHEAST ASIA HAS BEEN IN RESPONSE TO GROWTH IN CONSUMER DEMAND AT THE LOCAL LEVEL OTHER THAN VCR PRODUCTION IN INDONESIA HE SAYS MOST OF SANYO'S ASIAN FACTORIES MAINLY SUPPLY THE REGION FOR EXAMPLE SANYO'S NEW RECHARGEABLEBATTERY PLANT IN BATAM INDONESIA AND ITS FACTORIES PRODUCING SMALL TVS IN SINGAPORE AND CHINA SELL NOTHING TO THE US ALMOST ALL JAPANESE AUTO PRODUCTION IN ASIA STAYS IN THE REGION SUCH PRODUCTION JAPANESE COMPANIES INSIST ULTIMATELY WILL CUT JAPAN'S OVERALL TRADE SURPLUS BECAUSE THESE GOODS REPLACE JAPANESE EXPORTS STILL ONE SURVEY BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY ESTIMATES THAT ABOUT 8 OF ALL JAPANESE PRODUCTION IN SOUTHEAST ASIA WENT TO NORTH AMERICA IN 1990 AND ANOTHER STUDY ESTIMATES THAT ABOUT A THIRD OF ALL SUCH ELECTRONICS PRODUCTION DOES ONE CONSEQUENCE INTENDED OR NOT IS TO OBSCURE A POLITICALLY EXPLOSIVE FACT THE ENDURING SUCCESS OF JAPAN INC'S USAIMED EXPORT MACHINE I HAVE OFTEN HEARD SPOKESMEN FOR MAJOR JAPANESE GOVERNMENT AND INDUSTRY GROUPS SAY LOOK OUR CONSUMER ELECTRONICS EXPORTS ARE GOING DOWN' SAYS JOHN STERN HEAD OF THE AMERICAN ELECTRONICS ASSOCIATION'S TOKYO OFFICE THEY ARE USING THIS TREND FOR TRADEBALANCING PURPOSES MR STERN SAYS THE TREND SHOWS THE FUTILITY OF CONGRESSIONAL PROPOSALS TO CUT JAPAN'S TRADE SURPLUS WITH THE US IF WE DO THAT THEY'LL SHIFT PRODUCTION TO ANOTHER COUNTRY AND THE PRODUCTS WILL STILL COME TO THE US IN 1987 JAPAN'S TRADE SURPLUS WITH THE US REACHED A RECORD 52 BILLION THE FIGURE DROPPED SHARPLY IN EACH OF THE FOLLOWING THREE YEARS PARTLY BECAUSE THE YEN'S RISE MADE JAPANESE GOODS MORE EXPENSIVE ON WORLD MARKETS AND PARTLY BECAUSE JAPAN'S BOOMING ECONOMY SUCKED IN MORE IMPORTS JAPANESE COMPANIES ALSO RAPIDLY EXPANDED PRODUCTION IN NORTH AMERICA JUST AS THEY WERE DOING IN ASIA THOUGH JAPAN'S TRADE SURPLUS WITH THE US STARTED GROWING AGAIN IN 1991 IT REMAINS 16 BELOW THE HIGH MARK OR DOES IT BUT MR VESTAL'S STUDY ALSO SHOWS THAT IN 1992 JAPAN SHIPPED 338 OF ITS EXPORTS TO ASIA UP FROM 247 IN 1986 MUCH OF THAT WAS IN THE FORM OF CAPITAL GOODS FOR JAPANESE FACTORIES AND PARTS FOR THE PRODUCTS MADE IN THOSE FACTORIES THROUGH ASIA JAPAN'S RELIANCE ON THE US MARKET HAS AT WORST REMAINED CONSTANT MR VESTAL CONCLUDED AND IN FACT MAY BE INCREASING 9303220035 930322 WHAT'S NEWS BUSINESS AND FINANCE THE US POSTPONED SANCTIONS AGAINST EUROPEAN COMMUNICATIONS COMPANIES AT LEAST UNTIL NEXT WEEK WHEN THE US TRADE CHIEF IS TO MEET WITH A TOP EC OFFICIAL ABOUT PURCHASES BY EC GOVERNMENTS SEPARATELY US COMPANIES HELD A SURPRISINGLY LARGE SHARE OF THE JAPANESE MICROCHIP MARKET IN THE FOURTH QUARTER ENDING THREATS OF US RETALIATION THE CLINTON ADMINISTRATION MAY TRY TO STOP EUROPE'S AIRBUS FROM USING A TYPE OF LEASE THAT HAS HELPED IT PLACE ITS JETS WITH AIRLINES ACCORDING TO GOVERNMENT AND INDUSTRY OFFICIALS THE MOVE WOULD BENEFIT US AIRCRAFT MANUFACTURERS BUT HURT US AIRLINES CLINTON'S ECONOMIC PLAN FACES TOUGHER CHALLENGES IN THE SENATE THAN IT DID IN THE HOUSE WHERE THE PACKAGE SURVIVED LARGELY UNSCATHED CONSERVATIVE DEMOCRATS AND REPUBLICANS ARE LIKELY TO TARGET PARTS OF THE DEFICITREDUCTION PLAN AND TO SEEK TO SCALE BACK A 163 BILLION SPENDING PACKAGE AT&T NAMED A NEW HEAD OF ITS NCR UNIT WHICH AT&T PLANS TO TURN INTO A MARKETER OF MULTIMEDIA COMPUTER AND COMMUNICATION SYSTEMS IN AN EFFORT TO EXPLOIT THE PARENT COMPANY'S STRENGTH IN PHONE TECHNOLOGY INTEL IS EXPECTED TO ANNOUNCE TODAY THAT IT HAS STARTED SHIPPING ITS NEW PENTIUM CHIP TO PERSONALCOMPUTER MAKERS INTEL IS SAID TO BE CHARGING RELATIVELY LOW PRICES FOR THE CHIP TO HASTEN A SHIFT TO THE NEW TECHNOLOGY QVC NETWORK INTENDS TO LAUNCH A SECOND CABLE TV SHOPPING CHANNEL IT WOULD PROMINENTLY FEATURE MERCHANDISE RELATED TO HEALTH AND EATING JWP PLANS TO SELL ITS COMPUTER MARKETING BUSINESS AND TO FOCUS ON ITS CONSTRUCTION CONTRACTING OPERATIONS THE SALE WOULD RID JWP OF THE REMAINS OF ITS 1991 PURCHASE OF BUSINESSLAND APPLE SAID IT WILL NEXT MONTH START SELLING COMPUTERS DESIGNED TO MANAGE NETWORKS OF DESKTOP COMPUTERS SEPARATELY APPLE IS DEVELOPING A VERSION OF ITS POWERBOOK NOTEBOOK PC THAT USES ELECTRONIC PENS TO INPUT DATA JAPAN'S GOVERNMENT IS PREPARING A SPENDING PACKAGE THAT COULD TOTAL 120 BILLION OR MORE IN AN ATTEMPT TO STIMULATE THE COUNTRY'S SLUMPING ECONOMY NBC IS FORCING THE DEPARTURE OF THREE EMPLOYEES WHO WERE INVOLVED IN THE BROADCAST OF A STAGED EXPLOSION OF A PICKUP TRUCK INSIDERS SAID CHIRON AND A SCHERING UNIT WON AN FDA ADVISORY PANEL'S RECOMMENDATION THAT MARKETING OF THEIR DRUG TO TREAT MULTIPLE SCLEROSIS BE APPROVED COMPAQ'S TOP PERSONALCOMPUTER EXECUTIVE H DOUGLAS JOHNS RESIGNED AND INTENDS TO RUN HIS OWN BUSINESS SHORT INTEREST INCREASED 35 ON THE BIG BOARD AND 14 ON THE AMEX IN THE PERIOD THAT ENDED IN MIDMARCH GILLETTE'S PLANNED ACQUISITION OF PARKER PEN FOR 4235 MILLION IS BEING CHALLENGED BY US ANTITRUST OFFICIALS MICROGRAFX HINTED AT A SIZABLE FOURTHQUARTER LOSS AND DISCLOSED POSSIBLE CRIMINAL ACTS AT ITS JAPANESE UNIT THE SOFTWARE MAKER'S FINANCE CHIEF MEANWHILE IS RESIGNING BONDS LEHMAN BROTHERS TREASURY INDEX 504657 OFF 1842 COMMODITIES OIL 2008 A BARREL OFF 21 CENTS DOW JONES FUTURES INDEX 13200 UP 043 SPOT INDEX 12636 UP 066 DOLLAR 11610 YEN UP 040 16340 MARKS OFF 00075 9303220034 930322 LOCKHEED MACHINISTS WIDELY REJECT PACT AND AUTHORIZE STRIKE MACHINISTS UNION WORKERS AT MOST NATIONWIDE LOCKHEED CORP PLANTS HAVE REJECTED A THREEYEAR CONTRACT OFFER AND AUTHORIZED A STRIKE HOWEVER OFFICIALS OF THOSE UNIONS REPRESENTING ABOUT 11200 EMPLOYEES SAY THEY HAVE NOT MADE THE DECISION TO PROCEED WITH A STRIKE AND ARE HOPEFUL TALKS WILL RESUME ON SATURDAY ABOUT 96 OF VOTING WORKERS AT THE COMPANY'S AERONAUTICALSYSTEMS DIVISION PLANTS IN GEORGIA SOUTH CAROLINA WEST VIRGINIA AND MISSISSIPPI REJECTED AN OFFER THAT INCLUDED LUMPSUM ANNUAL PAYMENTS OF 1200 IN THE FIRST YEAR 3 OF ANNUAL INCOME IN THE SECOND YEAR AND 25 OF ANNUAL INCOME IN THE THIRD YEAR A PERSON FAMILIAR WITH THE OFFER SAID BUT A SPOKESMAN FOR THE 5200MEMBER LOCAL 709 OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS & AEROSPACE WORKERS UNION IN GEORGIA SAID THE OFFER WAS REJECTED BECAUSE IT INCLUDES CUTS IN HEALTH CARE BENEFITS AND SHARPLY ALTERED FORMULAS FOR DETERMINING COSTOFLIVING PAY INCREASES A COMPANY SPOKESMAN SAID LOCKHEED OFFICIALS ARE DISAPPOINTED BECAUSE THEY BELIEVE THE OFFER WAS FAIR AND BECAUSE THE COMPANY NEEDS TO REDUCE COSTS TO BECOME MORE COMPETITIVE LOCKHEED IS BASED IN CALABASAS CALIF OTHER UNION LOCALS REPRESENTING 6000 WORKERS AT VARIOUS CALIFORNIA PLANTS AND OPERATIONS ALREADY HAD VOTED TO REJECT THE OFFER AND AUTHORIZE A STRIKE BY SIMILAR MARGINS ONLY WORKERS AT THE COMPANY'S ONTARIO CALIF MILITARYAIRCRAFT MODIFICATIONS DIVISION HAVE VOTED TO ACCEPT A COMPANY OFFER THAT INCLUDED SOME SIMILAR TERMS THE UNION CONTRACT THERE PASSED ITS FINAL ANNIVERSARY DATE LAST NOVEMBER EARLIER THAN THE OTHERS UNDER ALL OF LOCKHEED UNION AGREEMENTS CONTRACTS DON'T TECHNICALLY EXPIRE AND REMAIN IN EFFECT IF A NEW AGREEMENT IS NOT REACHED ON A FINAL ANNIVERSARY DATE EITHER SIDE CAN TERMINATE A CONTRACT AFTER THE FINAL ANNIVERSARY DATE BY GIVING FIVE DAYS' ADVANCE NOTICE OF ITS INTENT 9303220032 930322 WHITE HOUSE GIVES LOWERRANKING POST TO HEALTH ADVISER WASHINGTON THE WHITE HOUSE DEMOTED A HEALTH INDUSTRY EXECUTIVE LEADING ONE OF THE ADMINISTRATION'S ADVISORY HEALTH GROUPS OVER CONCERNS THAT HIS BUSINESS TIES POSED CONFLICTOFINTEREST PROBLEMS MEANWHILE CLINTON HEALTH ADVISERS MET NEARLY AROUND THE CLOCK FROM FRIDAY THROUGH SUNDAY IN AN EFFORT TO BEGIN FORMULATING RECOMMENDATIONS TO THE PRESIDENT ON WHAT SHOULD GO INTO THE HEALTH PLAN HE WILL PRESENT TO CONGRESS IN MAY EACH OF THE 30PLUS WORKING GROUPS OUTLINED OPTIONS TO WHITE HOUSE ADVISER IRA MAGAZINER IN MORE THAN 35 HOURS AT THE OLD EXECUTIVE OFFICE BUILDING NO FINAL DECISIONS WERE MADE ACCORDING TO PARTICIPANTS A HEALTH TASK FORCE SPOKESMAN SAID THAT THOMAS PYLE HAD BEEN DOWNGRADED TO CONSULTANT STATUS AFTER ADMINISTRATION OFFICIALS DETERMINED THAT HIS STOCK HOLDINGS AND OTHER BUSINESS AFFILIATIONS VIOLATED ETHICS RULES MR PYLE IS A SENIOR ADVISER TO THE BOSTON CONSULTING GROUP AND DIRECTOR OF MILLIPORE CORP A HIGH TECHNOLOGY FIRM THAT SELLS ITS PRODUCTS TO HOSPITALS AND OTHER MEDICAL FACILITIES OFFICIALS SAID THAT MR PYLE WHO HAS BEEN IN WASHINGTON WORKING WITH THE HEALTH GROUP FOR MORE THAN A MONTH HAD LISTED HIS BUSINESS TIES WHEN HE WAS ASKED TO JOIN THE ADMINISTRATION'S HEALTH WORKING GROUP BUT THE OFFICIALS SAID THEY HAD ONLY RECENTLY COMPLETED THEIR ETHICS REVIEW THEY SAID THEY ASKED HIM TO TAKE A LOWER CONSULTANT POSITION WHICH MEANS HE WON'T BE PAID AND WILL ATTEND MEETINGS ONLY INTERMITTENTLY ORIGINALLY MR PYLE HAD BEEN ASKED TO BECOME A TEMPORARY GOVERNMENT EMPLOYEE AND HE WAS MADE LEADER OF ONE OF THE SUBGROUPS ADVISING THE HEALTH TASK FORCE 9303220031 930322 FOREIGN EXCHANGE CANADIAN DOLLAR APPEARS ATTRACTIVE AMID UNCERTAINTIES IN OTHER COUNTRIES BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK TURMOIL IN EUROPE AND WEAKNESS IN THE US DOLLAR WILL ATTRACT CURRENCY PLAYERS TO CANADIAN DOLLARS OVER THE NEXT FEW WEEKS BUT THE LONGERTERM FATE OF CANADA'S CURRENCY WILL DEPEND LARGELY ON THE BUDGETS PRESENTED BY CANADA'S FEDERAL GOVERNMENT AND THE MAJOR PROVINCES POSSIBLY BY LATE APRIL UNEASE ABOUT THE FATE OF RUSSIAN PRESIDENT BORIS YELTSIN AND UNCERTAINTY ABOUT THE NEW SHAPE OF THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM ARE CASTING A PALL ON EUROPEAN CURRENCIES TRADERS AND ANALYSTS SAY MEANWHILE THE US DOLLAR WHICH SANK LATE LAST WEEK AS INVESTORS GAVE UP ON THE CHANCE OF FRESH GAINS HOLDS LITTLE APPEAL AS A HAVEN DEALERS SAY THE DOLLAR'S FAILURE TO BREAK THROUGH LAST WEEK'S HIGH OF 167 MARKS DESPITE GERMAN RATE CUTS AND RUSSIAN UNREST SUGGESTS IT WILL BE STUCK IN A SLIGHTLY LOWER RANGE OVER THE NEAR TERM THERE'S SO MUCH TURMOIL EVERYWHERE ELSE IT'S CANADA BY DEFAULT SAYS RICHARD VULLO SENIOR MARKETING REPRESENTATIVE AT THE BANK OF MONTREAL IN NEW YORK IN LATE NEW YORK TRADING FRIDAY THE US DOLLAR TRADED AT C12466 UNCHANGED FROM LATE THURSDAY IN JANUARY IT TRADED AS HIGH AS C12876 THE DOLLAR TRADED AT 16340 MARKS AND 11610 YEN LATE FRIDAY COMPARED WITH 16415 MARKS AND 11570 YEN THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 16472 MARKS AND AT 11611 YEN SAFEHAVEN BUYING SHOULD KEEP THE CANADIAN DOLLAR STRONG AT LEAST THROUGH THE END OF THE FIRST QUARTER ANALYSTS SAY CURRENCY PLAYERS ALSO ARE ATTRACTED BY HIGH YIELDS COMPARED TO WHAT IS AVAILABLE IN THE US INVESTORS CAN EARN ALMOST 2 1/4 PERCENTAGE POINTS MORE FOR THREEMONTH MONEY IN CANADA AND 1 1/2 PERCENTAGE POINTS MORE FOR 10YEAR NOTES THAT PREMIUM HAD BEEN SHRINKING BUT PLAYERS DON'T EXPECT IT TO DISAPPEAR AND AS LONG AS CANADIAN INTEREST RATES DON'T FALL AS FAR OR AS FAST AS THOSE OF OTHER COUNTRIES THE DECLINE IN CANADIAN RATES WILL HELP THE CANADIAN DOLLAR BY BOOSTING ECONOMIC GROWTH ANALYSTS SAY THE CURRENCY GOT A SEPARATE BOOST LAST WEEK FROM NEWS THAT CANADA'S TRADE SURPLUS WAS C19 BILLION IN JANUARY A WIDER SURPLUS THAN ANALYSTS EXPECTED THAT IS PARTICULARLY HEARTENING FOR INVESTORS GIVEN CANADA'S HEAVY RELIANCE ON EXPORTS FOR ECONOMIC GROWTH ANALYSTS SAY PLAYERS ALSO TOOK A FAVORABLE VIEW FRIDAY OF BUDGETS ANNOUNCED BY TWO PROVINCES NEWFOUNDLAND AND SASKATCHEWAN THEY ARE VIEWED AS VERY TOUGH BUDGETS IN DEALING WITH THEIR DEFICITS SAYS BANK OF MONTREAL'S MR VULLO THE PROSPECT OF PROVINCIAL BUDGET DEFICITS HAS ALARMED INVESTORS BECAUSE THEY COULD LEAD CREDIT RATING AGENCIES TO DOWNGRADE SOME PROVINCIAL DEBT IN SOME CASES TO BELOW INVESTMENT GRADE THAT WOULD UNDERMINE THE POPULARITY OF CANADIAN BONDS WHICH HAS BEEN ONE KEY TO THE CURRENCY'S STRENGTH IN RECENT WEEKS ALTHOUGH NEWFOUNDLAND AND SASKATCHEWAN ACCOUNT FOR A NEGLIGIBLE PORTION OF CANADA'S GROSS DOMESTIC PRODUCT THEIR FISCAL POLICY MAY FORESHADOW WHAT MARKET PLAYERS CAN EXPECT FROM THE MAJOR PROVINCES AND THE FEDERAL GOVERNMENT WHICH WON'T RELEASE THEIR BUDGETS UNTIL LATE APRIL AT THE EARLIEST ENTHUSIASM FOR THE CANADIAN DOLLAR COULD PUSH THE US DOLLAR DOWN TO C122 SAYS ROBERT STEIN PRESIDENT OF TREBOR FINANCIAL INC A CHICAGO TRADING ADVISORY FIRM SPECIALIZING IN FOREIGN EXCHANGE BUT BEYOND THAT LEVEL THE CANADIAN CURRENCY IS LIKELY TO RUN INTO TROUBLE AS FUNDAMENTAL ECONOMIC AND POLITICAL UNCERTAINTIES RESURFACE ANALYSTS SAY 9303220030 930315 SOTHEBY'S 1992 PROFIT FELL 69 ON A CHARGE CHRISTIE'S SLIPPED 18 NEW YORK SOTHEBY'S HOLDINGS INC SAID THAT FOURTHQUARTER PROFIT FELL 37 AND PROFIT FOR THE YEAR PLUNGED 69 DEPRESSED PARTLY BY A RESTRUCTURING CHARGE FOR REORGANIZING ITS EUROPEAN OPERATIONS IMPRESSIONIST AND MODERN ART STABILIZED ITS 1991 PROFIT HAD PLUMMETED CHRISTIE'S DIDN'T PROVIDE SEPARATE FOURTHQUARTER RESULTS NEW YORKBASED SOTHEBY'S SAID THAT FOURTHQUARTER NET INCOME FELL TO 116 MILLION OR 21 CENTS A SHARE FROM 185 MILLION OR 33 CENTS A SHARE IN 1991 REVENUE FOR THE QUARTER SLIPPED 45 TO 845 MILLION FROM 885 MILLION NET FOR THE YEAR DROPPED TO 4 MILLION OR SEVEN CENTS A SHARE INCLUDING A 49 MILLION RESTRUCTURING CHARGE FOR STAFF CUTBACKS AND OTHER COSTS RELATED TO THE EUROPEAN REORGANIZATION PROFIT A YEAR EARLIER WAS 131 MILLION OR 25 CENTS A SHARE REVENUE ROSE 12 TO 225 MILLION FROM 2224 MILLION IN 1992 SOTHEBY'S SAID AUCTION SALES FOR THE YEAR ROSE 25 TO 11 BILLION AND OPERATING PROFIT IMPROVED TO 11 MILLION COMPARED WITH A 38 MILLION LOSS IN 1991 THE ART DEALER'S INCOME FROM PRINCIPAL ACTIVITIES HOWEVER PLUMMETED 89 FOR THE YEAR AS SALES DROPPED FROM ITS ACQUAVELLA MODERN ART JOINT VENTURE SOTHEBY'S SAID IT EXPECTS PROFITABILITY TO STRENGTHEN IN 1993 ON IMPROVED SALES AN INCREASE IN THE BUYER'S PREMIUM THAT WENT INTO EFFECT IN JANUARY AND CONTINUED COST CONTROLS CHRISTIE'S REPORTED 1992 NET EASED JUST 18 TO 111 MILLION OR 37 CENTS A SHARE FROM 113 MILLION OR 37 CENTS A SHARE BASED ON BRITISH CURRENCY THOUGH CHRISTIE'S PROFIT CLIMBED 5 A YEAR EARLIER THE AUCTION HOUSE REPORTED AN 85 PLUNGE IN PROFIT AMID A COLLAPSE IN THE MARKET FOR IMPRESSIONIST AND CONTEMPORARY PAINTINGS TOTAL 1992 SALES CLIMBED TO 11 BILLION FROM 1 BILLION A YEAR EARLIER CHRISTIE'S ALSO CONFIRMED THAT SIR ANTHONY TENNANT A DIRECTOR AND FORMER GUINESS PLC CHAIRMAN WILL SUCCEED LORD CARRINGTON IN MAY AS CHAIRMAN LORD CARRINGTON WILL REMAIN A DIRECTOR CHRISTIE'S INTERNATIONAL PLC'S 1992 PRETAX EARNINGS EASED TO 111 MILLION FROM 113 MILLION A YEAR EARLIER AN ARTICLE LAST MONDAY INCORRECTLY REPORTED THE FIGURES AS NET INCOME 9303220028 930322 US CHALLENGES GILLETTE PACT TO BUY UK'S PARKER PEN BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON IN A BLOW TO GILLETTE CO'S STRATEGY OF FAST GROWTH IN THE WORLD PEN MARKET THE US JUSTICE DEPARTMENT HAS CHALLENGED THE COMPANY'S AGREEMENT TO BUY PARKER PEN HOLDINGS LTD AS A VIOLATION OF US ANTITRUST LAWS THE JUSTICE DEPARTMENT WHICH IS EXPECTED TO FILE ITS ANTITRUST SUIT TODAY TO BLOCK THE PROPOSED TRANSACTION SAID IT WOULD SUBSTANTIALLY LESSEN COMPETITION IN THE MANUFACTURE AND SALE IN THE UNITED STATES OF PREMIUM FOUNTAIN PENS GILLETTE WITH 1992 REVENUE OF 52 BILLION AGREED TO BUY PARKER OF NEWHAVEN ENGLAND LAST SEPTEMBER FOR 4235 MILLION IN A MOVE THAT WOULD BOOST ITS SHARE OF THE INTERNATIONAL WRITING INSTRUMENT MARKET TO ABOUT 15 FROM 8 TOPPING MARKET LEADER SOCIETE BIC SA'S SHARE OF SLIGHTLY MORE THAN 8 DENYING THE JUSTICE DEPARTMENT'S CLAIMS GILLETTE SAID WE BELIEVE WE HAVE DEMONSTRATED TO THE JUSTICE DEPARTMENT THAT THERE WILL BE NO ANTICOMPETITIVE EFFECT AS A RESULT OF THIS ACQUISITION A COMPANY SPOKESMAN ADDED THAT THE COMPANY MUST SETTLE ANY ANTITRUST CLAIMS BY MIDMAY OR THE DEALARRANGED THROUGH A STOCK SWAPWOULD BE VOIDED FOR GILLETTE'S WRITING INSTRUMENTS DIVISION WHICH INCLUDES CORRECTION FLUIDS AND HAD 1992 SALES OF 520 MILLION PURCHASING PARKER WITH MORE THAN 300 MILLION A YEAR IN SALES WOULD MAKE AN IDEAL FIT ANALYSTS SAY PARKER'S STRENGTH IN MIDPRICED PENS WOULD COMPLEMENT GILLETTE'S LOWPRICED LOWMARGIN PAPER MATE PENS WHICH SELL FOR 5 OR LESS AND ITS EXPENSIVE HIGHERMARGIN WATERMAN BRAND WHICH RETAILS PENS FOR 50 OR MORE THE JUSTICE DEPARTMENT IS ONLY INTERESTED IN THAT LAST AREA PREMIUM FOUNTAIN PENS OF BETWEEN 50 AND 400 GILLETTE THROUGH ITS WATERMAN UNIT AND PARKER WITH ITS DUOFOLD PENS EACH CONTROLS ABOUT 20 OF THE 46 MILLION PREMIUM FOUNTAIN PEN MARKET IN THE US THE JUSTICE DEPARTMENT SAID GILLETTE WOULD NOT CONFIRM THOSE FIGURES THIS COMBINATION WOULD INCREASE CONCENTRATION SIGNIFICANTLY IN AN ALREADY CONCENTRATED MARKET AND WOULD LIKELY INCREASE THE PRICES CONSUMERS WOULD PAY FOR PREMIUM FOUNTAIN PENS IN THE UNITED STATES SAID JOHN CLARK THE ACTING ASSISTANT ATTORNEY GENERAL FOR ANTITRUST GILLETTE COUNTERS THAT OVER 80 OF PARKER'S SALES ARE OUTSIDE THE US AND THAT ANTITRUST OFFICIALS IN THE GOVERNMENTS OF FRANCE BRITAIN GERMANY AND CANADA HAVE APPROVED THE DEAL OVER THE PAST FEW MONTHS MOREOVER SAYS GILLETTE SPOKESMAN DAVID FAUSCH ONLY ABOUT 10 OF THE WATERMAN UNIT'S 1992 SALES OF 135 MILLION WERE IN THE US THE US MARKET FOR PREMIUM FOUNTAIN PENS IS STILL SMALL WE JUST DON'T THINK ANTITRUST IS AN ISSUE HERE HE SAYS JOE DAVIDSON IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 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 9303220027 930322 TECHNOLOGY CHIRON DRUG GETS BACKING OF FDA PANEL BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL EMERYVILLE CALIF WITH MARKET APPROVAL EXPECTED IN MONTHS A GENESPLICED DRUG IS GIVING MULTIPLE SCLEROSIS PATIENTS NEW HOPE AND BIOTECH PARTNERS BERLEX LABORATORIES AND CHIRON CORP THE PROSPECT OF 100 MILLION TO 150 MILLION IN SALES NEXT YEAR AS EXPECTED A FOOD AND DRUG ADMINISTRATION ADVISORY PANEL ON FRIDAY VOTED 72 TO RECOMMEND THAT THE FDA APPROVE BETASERON A SYNTHETIC VERSION OF BETA INTERFERON A PROTEIN THAT POLICES THE IMMUNE SYSTEM PANEL VOTES AREN'T BINDING ON THE FDA BUT DO CARRY GREAT WEIGHT UNDER A MANUFACTURING PACT CHIRON WILL MAKE BETASERON AT ITS FACTORY HERE AND BERLEX A UNIT OF GERMANY'S SCHERING AG WILL MARKET THE DRUG CHIRON WILL RECEIVE PAYMENTS EXPECTED TO REACH 15 OF BETASERON'S SALES IN RECENT DAYS CHIRON'S STOCK DEFIED THE BIOTECH SLUMP TO RISE IN ADVANCE OF THE FDA'S MOVE FRIDAY SHARES GYRATED BETWEEN 54 AND 46 UNTIL OFFICIALS OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS' AUTOMATED QUOTATION SERVICE HALTED TRADING AT 50 DOWN 275 TO QUELL SPECULATION CHIRON SAID MS IS A NEUROLOGICAL DISEASE THAT ERODES THE WRAPPING AROUND NERVE CELLS JAMMING THE BRAIN'S SENSORY AND MOTOR SIGNALS SYMPTOMS RANGE FROM BLURRED VISION AND SLURRED SPEECH TO TINGLING NUMBNESS AND PARALYSIS IT STRIKES YOUNG ADULTS WAXING AND WANING OVER DECADES CAUSING DISABILITY AND OCCASIONALLY EARLY DEATH ABOUT 300000 PEOPLE IN THE US SUFFER FROM MS OF THOSE BETASERON MAY EASE FLAREUPS AND LENGTHEN REMISSION IN ABOUT A THIRD A TWOYEAR STUDY OF 338 MS PATIENTS SHOWED BETASERON INJECTIONS REDUCED THE MS ATTACKRATE BY A THIRD AND CUT MORE SEVERE ATTACKS BY NEARLY HALF WHEN COMPARED TO A CONTROL GROUP THE DRUG'S SIDE EFFECTS INCLUDED FEVERS AND FLULIKE MALAISE HOWEVER STEROID USE AND HOSPITAL STAYS DECLINED WITH TREATMENT SAID JEFFREY LATTS BERLEX VICE PRESIDENT THIS IS THE MOST PROMISING THING I'VE HEARD SAID LESLEE CARIOSCIA AN MS PATIENT IN ROCKLAND COUNTY NY MS FRIGHTENS YOU BECAUSE YOU DON'T KNOW WHAT PART OF YOUR BODY IT WILL CONTROL NEXT SHE ADDED BUT THIS IS AN ANSWERED PRAYER WHILE CLINICAL SYMPTOMS OF MS MAY BE JUST THE TIP OF THE ICEBERG FOR THE DISEASE MAGNETIC RESONANCE IMAGING SCANS HAVE OPENED A WINDOW ON BETASERON'S ABILITY TO CURB ITS DAMAGE INSIDE THE BRAIN AS WELL BRAIN LESIONS SHRANK SLIGHTLY 05 IN TREATED PATIENTS OVER TWO YEARS BERLEX SAID WHILE LESIONS GREW 18 IN THE CONTROL GROUP BILLING BETASERON AS A REAL BENEFIT BUT NOT A CURE CHIRON PRESIDENT EDWARD PENHOET ADDED THAT THE DRUG WILL BE AT LEAST AS BIG AS OUR HEPATITIS C DIAGNOSTIC TEST WHICH IS OUR BIGGEST PROFIT CONTRIBUTOR TODAY WALL STREET EXPECTS CHIRON TO POST 1993 PROFIT OF 10 MILLION TO 20 MILLION OR 30 CENTS TO 60 CENTS A SHARE ON SALES OF 300 MILLION BUT BETASERON ISN'T LIKELY TO BE CHEAP WHILE BERLEX HASN'T DISCLOSED ITS PRICING PLANS ANALYSTS EXPECT AN ANNUAL PRICE TAG OF 5000 TO 7000 HOWEVER TREATING MS PATIENTS CAN COST 20000 A YEAR SO SOME ARGUE THAT A DRUG THAT REDUCES HOSPITALIZATION MIGHT BRING OFFSETTING SAVINGS 9303220026 930322 ERICSSON SIGNS CHINESE CONTRACT STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP AB LM ERICSSON SAID IT SIGNED CONTRACTS FOR 220 MILLION KRONOR 284 MILLION TO EXTEND THE PUBLIC TELECOMMUNICATIONS NETWORK IN LIAONANG PROVINCE IN CHINA THE CONTRACTS COVER AXE OR AUTOMATIC EXCHANGE EQUIPMENT WITH DELIVERIES TO BE MADE DURING 1993 ERICSSON SAID CHINA IS ONE OF THE FASTEST GROWING MARKETS FOR ERICSSON AND THERE ARE ALREADY MORE THAN ONE AND A HALF MILLION LINES OF AXE IN OPERATION IN CHINA IT ADDED 9303220025 930322 TURKEY'S TRADE DEFICIT WIDENS ANKARA TURKEY TURKEY'S FOREIGN TRADE DEFICIT WIDENED TO 519 MILLION IN JANUARY FROM AROUND 400 MILLION A YEAR EARLIER THE STATE STATISTICS INSTITUTE SAID FRIDAY EXPORTS IN JANUARY TOTALED 13 BILLION UP FROM 12 BILLION A YEAR EARLIER IMPORTS ROSE TO 18 BILLION FROM 16 BILLION 9303220024 930322 WHO'S NEWS AIR METHODS CORP AIR METHODS CORP DENVER STEVEN B SANDS 34YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SANDS BROTHERS & CO WAS NAMED TO THE BOARD OF THIS PROVIDER OF AEROMEDICAL SERVICES AND SYSTEMS INCREASING THE BOARD'S SIZE TO EIGHT 9303220023 930322 LETTERS TO THE EDITOR HOW TO KILL SHAKESPEARE STONE DEAD MODERNIZE I AM A 13YEAROLD STUDENT AT MANALAPAN ENGLISHTOWN MIDDLE SCHOOL IN NEW JERSEY I READ YOUR FEB 5 PAGEONE ARTICLE MAKING SHAKESPEARE FUN IS A PROBLEM FOR BRITISH PURISTS OLD GUARD AND AVANTGARDE JOUST OVER BARD'S MEANING FOR TODAY'S 14YEAROLDS THE VIEWS OF THE BRITISH TEACHERS WERE INCREDIBLY WRONG AND THEY MISJUDGE YOUNG PEOPLE MY ENTIRE CLASS READ SHAKESPEARE'S A MIDSUMMER NIGHT'S DREAM AND IT WAS BY NO MEANS PLODDING AND WE READ IT IN ITS ORIGINAL FORM IT WILL NOT KILL SHAKESPEARE STONE DEAD HOWEVER I THINK IT WILL KILL SHAKESPEARE STONE DEAD BY DOING ONE OF HIS PLAYS IN A MODERNIZED VERSION IT JUST WON'T BE SHAKESPEARE I THINK I SPEAK FOR MY WHOLE CLASS WHEN SAYING WE REALLY ENJOYED IT TRUE MY TEACHER EXPLAINED IT VERSE BY VERSE BUT THAT JUST MADE IT MORE ENJOYABLE ALSO WE WATCHED MOVIE VERSIONS OF THE PLAY THAT WAS GREAT FUN THEN THE WHOLE CLASS DRESSED UP AS CHARACTERS FROM THE PLAY MEMORIZED PARTS AND ACTED THEM OUT WE ALL ASKED TO DO IT AGAIN YOUR ARTICLE REMINDED ME OF A PROFESSOR OF SHAKESPEARE TOM CRANFILL AT THE UNIVERSITY OF TEXAS WHEN I ATTENDED THERE IN THE LATE 1950S AND EARLY '60S PROF CRANFILL WAS PERHAPS THE MOST POPULAR LECTURER HE NOT ONLY MADE SHAKESPEARE FUN BUT MADE HIS PLAYS COME ALIVE WITH HIS READINGS HIS CLASSES HELD IN LARGE LECTURE HALLS WERE ALWAYS FILLED THE STUDENTS HANGING ON EVERY WORD HE ALSO WAS PREVAILED UPON TO GIVE READINGS ON SPECIAL OCCASIONS TO THE GENERAL PUBLIC UNFORTUNATELY THERE ARE FEW SUCH PROFESSORS WHO CAN SIMPLY READ SHAKESPEARE'S PLAYS TO A LECTURE HALL FULL OF STUDENTS WITHOUT BORING THEM PERHAPS TODAY'S STUDENTS ARE A DIFFERENT BREED AND NO ONE COULD HOLD THEIR INTEREST WITHOUT SOME GIMMICK BUT I SUSPECT THEY WOULD RESPOND WITH ENTHUSIASM TO A PROFESSOR LIKE TOM CRANFILL 9303220022 930322 KREMLIN SHOWDOWN FACING OUSTER YELTSIN BANKS ON THE RUSSIANS FOR DEMOCRATIC VISION CLINTON IN BACKING HIM IS PRAGMATIC REFORMS ARE A US SECURITY INTEREST RUTSKOI A POSSIBLE SUCCESSOR BY ADI IGNATIUS AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL THE FUTURE COURSE OF RUSSIA IS AT STAKE WITHIN A MONTH RUSSIAN PRESIDENT BORIS YELTSIN WILL HAVE SUCCEEDED BY HIS SEIZURE OF NEAR DICTATORIAL POWERS AND HIS APPEAL TO THE RUSSIAN PEOPLE OR HE WILL BE WASHED UP AND CONTROL OF RUSSIA WILL HAVE PASSED INTO THE HANDS OF MEN FAR LESS COMMITTED THAN HE IS TO DEMOCRACY AND FREEMARKET REFORM TO PULL OFF HIS RISKY EFFORT IN WHICH HE HAS ABANDONED DEMOCRATIC MEANS IN AN EFFORT TO ACHIEVE HIS VISION OF DEMOCRATIC ENDS MR YELTSIN IS BANKING ON THE SUPPORT OF THE PEOPLE HIS GOVERNMENT AND ON PRESIDENT CLINTON A MAN HE ONCE FELT WAS TOO YOUNG TO LEAD THE US HE NEEDS MILITARY SUPPORT OR AT THE VERY LEAST THE CONTINUED RESOLVE OF THE RUSSIAN ARMY TO STAY OUT OF POLITICS BUT BEFORE APRIL 25 THE DATE MR YELTSIN WANTS A POPULAR VOTE ON WHO IS TO RULE RUSSIA HE IS GOING TO BE UNDER UNREMITTING ATTACK AND SEEMS CERTAIN TO LOSE SKIRMISHES EVEN IF HE IS ULTIMATELY TO PREVAIL FIRST HE IS LIKELY TO BE IMPEACHED ANTIYELTSIN FORCES ALREADY WERE DEMANDING HIS IMPEACHMENT YESTERDAY AT AN EMERGENCY SESSION OF THE SUPREME SOVIET THE COUNTRY'S 250MEMBER STANDING PARLIAMENT WHICH VOTED TO ASK THE CONSTITUTIONAL COURT TO RULE ON MR YELTSIN'S ACTIONS VALERY ZORKIN THE HEAD OF THAT COURT ALREADY HAS COME OUT AGAINST HIM THE NEXT STEP WOULD BE AN IMPEACHMENT VOTE BY THE COUNTRY'S HIGHEST LAWMAKING BODY THE CONGRESS OF PEOPLE'S DEPUTIES WHICH IS EXPECTED TO HOLD AN EMERGENCY SESSION THIS WEEK THE CONGRESS WITH A MEMBERSHIP MAINLY OF FORMER COMMUNISTS ALMOST CERTAINLY WILL VOTE FOR MR YELTSIN'S IMPEACHMENT MR YELTSIN HOWEVER HAS ALREADY DECLARED THAT HE WILL IGNORE ANY SUCH DECISION AND LET THE POPULAR REFERENDUM WHERE HIS CHANCES SEEM BETTER DECIDE HIS FATE THE NEXT SCHEDULED MAJOR EVENT WOULD BE THE USRUSSIAN SUMMIT SET FOR APRIL 34 IN VANCOUVER BRITISH COLUMBIA IF IT COMES OFF AS PLANNED IT WILL CAST WORLD ATTENTION ON WASHINGTON'S SUPPORT FOR MR YELTSIN DESPITE HIS ACTIONS THE WHITE HOUSE HAS SAID IT PLANS TO GO AHEAD WITH THE SUMMIT MEETINGALTHOUGH SOME QUESTION WHETHER MR YELTSIN WILL BE ABLE TO LEAVE THE COUNTRY SAFELY PERSONAL AFFECTION HAD LITTLE TO DO WITH PRESIDENT CLINTON'S DECISION TO STICK BY MR YELTSIN IN HIS BATTLE WITH THE RUSSIAN PARLIAMENT THEIR FIRST MEETING 30 MINUTES DURING LAST JUNE'S BUSHYELTSIN SUMMIT WAS NOT A BONDING EXPERIENCE THE 62YEAROLD RUSSIAN LEADER MADE NO ATTEMPT TO HIDE THE FACT THAT HE CONSIDERED THE DEMOCRATIC CANDIDATE TOO INEXPERIENCED FOR THE JOB OF PRESIDENT AND MR YELTSIN LATER CARICATURED MR CLINTON TO HIS AIDES AS A SOCIALIST MR CLINTON KNEW THAT MR YELTSIN WAS ROOTING FOR GEORGE BUSH IN THE ELECTION CLINTON AIDES SAY AND THE PRESIDENT IS TOO MUCH OF A POLITICIAN TO COMPLETELY FORGET THAT NEVERTHELESS THE WHITE HOUSE MOVED QUICKLY TO GIVE A RINGING ENDORSEMENT TO MR YELTSIN AND BACKED HIS DECISION TO ASSUME EMERGENCY POWERS AND CALL FOR A NATIONAL VOTE WHILE MR YELTSIN'S FUTURE IS IN THE BALANCE THE STAKES FOR PRESIDENT CLINTON ARE HIGH AS WELL CERTAINLY THERE IS A RISK YELTSIN COULD LOSE OUT SAYS MICHAEL MANDELBAUM DIRECTOR OF THE EASTWEST CENTER AT THE COUNCIL ON FOREIGN RELATIONS AND A CLINTON CAMPAIGN ADVISER YELTSIN CLEARLY NEEDS ALL THE SUPPORT HE CAN GET AND IF AN ENDORSEMENT FROM WASHINGTON MAKES A DIFFERENCE AND IT COULD THEN IT IS WORTH THE RISK HE SAYS MR CLINTON AND HIS ADVISERS FERVENTLY BELIEVE THAT THE SURVIVAL OF DEMOCRACY IN RUSSIA IS ESSENTIAL TO BOTH AMERICA'S NATIONAL SECURITY AND THE SUCCESS OF THEIR OWN ECONOMIC PLAN ESPECIALLY DEEP CUTS PROPOSED IN US DEFENSE SPENDING AND THEY BELIEVE MR YELTSIN IS THE BEST HOPE FOR DEMOCRACY AND ECONOMIC REFORM IN RUSSIA WHO ELSE WHO ELSE IS THERE TO BACK ASKS ONE TOP AIDE WHEN YOU LOOK AT IT THAT WAY IT'S NOT ALL THAT MUCH OF A GAMBLE THE ILLEGALITY OF MR YELTSIN'S MOVE MUST MAKE MR CLINTON SOMEWHAT UNCOMFORTABLE DURING THE CAMPAIGN MR CLINTON REPEATEDLY CRITICIZED PRESIDENT BUSH FOR PLACING PERSONAL RELATIONSHIPS ABOVE THE PURSUIT OF DEMOCRATIC VALUES WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS EVEN WENT SO FAR AS TO SUGGEST THAT MR YELTSIN'S ACTIONS ANSWERED A HIGHER DEMOCRATIC CALL THAN MERE LEGALITY AND HE SAID THAT THE ADMINISTRATION WILL CONTINUE TO PUSH FOR INCREASED FOREIGN AID TO RUSSIA SECRETARY OF STATE WARREN CHRISTOPHER WILL GIVE A SPEECH IN CHICAGO TONIGHT OUTLINING THE ADMINISTRATION'S COMMITMENT TO A DEEPER ENGAGEMENT WITH RUSSIA THE FIRST STEP IN A HIGHPROFILE LOBBYING CAMPAIGN INTENDED TO RALLY PUBLIC SUPPORT FOR INCREASED FOREIGN AID RUSSIAN FOREIGN MINISTER ANDREI KOZYREV WILL VISIT WASHINGTON LATER THIS WEEK TO MEET WITH THE PRESIDENT AND MR CHRISTOPHER US OFFICIALS WERE CLEARLY RELIEVED THAT MR YELTSIN DID NOT SUSPEND CIVIL LIBERTIES IN RUSSIA OR MOVE TO DISSOLVE THE PARLIAMENTACTIONS MR CLINTON WOULD HAVE HAD A FAR TOUGHER TIME STOMACHING ADMINISTRATION OFFICIALS WERE PLEASED THAT MR YELTSIN CHOSE TO CALL AN EARLY ELECTION THE BALLOTING IF NOT BLOCKED BY THE PARLIAMENT OR OTHERWISE DERAILED WILL ASK RUSSIAN VOTERS TO ENDORSE MR YELTSIN'S PRESIDENCY VOTERS ARE ALSO TO BE ASKED TO APPROVE A NEW DRAFT CONSTITUTION AND A DRAFT LAW ON ELECTIONS FOR A NEW PARLIAMENT HE DIDN'T SAY TRUST ME HE DIDN'T SAY MANANA SAYS A TOP CLINTON AIDE HE SET A CLEAR DATE FOR THE ELECTIONS STILL IF MR YELTSIN DOES NOT SURVIVE THIS CRISIS MR CLINTON WILL HAVE EARNED THE ENMITY OF WHOEVER INHERITS THE RUSSIAN GOVERNMENT AND ITS THOUSANDS OF NUCLEAR WARHEADS IN SUCH MURKY CIRCUMSTANCES SOME LEADERS MIGHT BE TEMPTED TO HEDGE THEIR BETS EVEN PRESIDENT BUSH WHO HAS BEEN ACCUSED BY MR CLINTON AND OTHERS OF CLINGING TO MIKHAIL GORBACHEV LONG AFTER HIS TIME HAD PASSED DID JUST THAT IN THE FIRST HOURS AFTER THE AUGUST 1991 COUP WHILE CRITICIZING MR BUSH FOR THAT HESITATION MR CLINTON'S AIDES ADMIT THAT THE CURRENT SITUATION IS FAR DIFFERENT UNLIKE THE AUGUST COUP THE CLINTON ADMINISTRATION HAD PLENTY OF TIME TO CONSIDER ITS RESPONSE MR YELTSIN'S STRUGGLES WITH HIS CONGRESS HAVE BEEN UNFOLDING IN SLOW MOTION FOR MONTHS THE RUSSIAN LEADER ALSO WARNED THE PUBLIC AND HIS ALLIESTHAT HE MIGHT BE FORCED TO DECLARE EMERGENCY RULE US OFFICIALS SAID THAT THEY IN NO WAY ENDORSED MR YELTSIN'S MOVES BEFOREHAND BUT THEY WERE PSYCHOLOGICALLY PREPARED TO RESPOND WHEN HE DID ACT MR MANDELBAUM OF THE COUNCIL ON FOREIGN RELATIONS AGREES THERE ARE A NUMBER OF THINGS TO KEEP IN MIND YELTSIN HAS BEEN DEMOCRATICALLY ELECTED YELTSIN DID NOT SEND TANKS IN THE STREETS HE DECIDED TO DO IT DEMOCRATICALLY ALL THOSE THINGS COUNT AND THE COSTS OF ALIENATING MR YELTSIN'S OPPONENTS ARE NOT THAT GREAT HE SAYS THE PEOPLE WHO WILL TAKE HIS PLACE AREN'T LIKELY TO BE ESPECIALLY FRIENDLY TO THE US AND THE DEMOCRATIC AND ECONOMIC REFORMS WE BELIEVE IN ANYWAY NOT ALL RUSSIAN ANALYSTS AGREE WITH THAT VIEW HOWEVER DIMITRI SIMES OF THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE APPLAUDS PRESIDENT CLINTON'S DECISION TO BACK MR YELTSIN BUT HE WORRIES THAT BY CALLING MR YELTSIN THE ONLY DEMOCRATICALLY ELECTED LEADER THE ADMINISTRATION COULD BE SEEN AS TAKING SIDES IN FACT THERE ARE A LOT OF PEOPLE SYMPATHETIC TO THE WEST WITH IMPECCABLE DEMOCRATIC CREDENTIALS WHO ALSO OPPOSE MR YELTSIN TO ANNOUNCE THAT THOSE PEOPLE ARE ENEMIES OF THE US COULD END UP AS A SELFFULFILLING PROPHECY MR SIMES ALSO WORRIES THAT SUCH A RINGING ENDORSEMENT COULD BE MISREAD BY MR YELTSIN AND HIS SUPPORTERS AS A GREEN LIGHT TO ESCALATE THE CONFLICT ON SUNDAY A FOREWARNING OF THE POTENTIAL DANGERS SPILLED ONTO THE STREETS SEVERAL THOUSAND PROCOMMUNIST DEMONSTRATORS SWARMED OVER THE SQUARE OUTSIDE THE RUSSIAN WHITE HOUSE THAT ONLY 18 MONTHS AGO MR YELTSIN'S SUPPORTERS SEEMED TO OWN THE DEMONSTRATORS CARRIED RED HAMMER AND SICKLE FLAGS THEIR MESSAGE WAS ANGRY THROW BORIS OUT THEY CHANTED NOBODY BELIEVES YELTSIN ANYMORE ACROSS THE STREET BEHIND WELLGUARDED BARRICADES AN EQUAL NUMBER OF YELTSIN SUPPORTERS SANG SONGS AND WONDERED WHERE IT WAS ALL HEADED OH WHAT A TERRIBLE DAY SAID LILIA LISAKOVSKA A 53YEAROLD DOCTOR WITH TEARS IN HER EYES HOW WILL THIS ALL END MR YELTSIN APPEARED YESTERDAY TO BE DRAWING ONLY A TRICKLE OF SUPPORT JUST A FEW LOCAL LEADERS ACROSS RUSSIA SAID THEY BACKED THE PRESIDENT NOWHERE NEAR THE FLOOD OF ENDORSEMENTS HE WILL NEED TO WIN HIS FIGHT TO REASSERT HIS WEAKENED POLITICAL STATURE AND PROTECT HIS POLICIES OF REFORM THE PRESIDENT IS STILL THE MOST POPULAR SINGLE POLITICIAN IN RUSSIA ACCORDING TO POLLS BUT HE IS FAR LESS WELLLIKED THAN HE WAS IN 1991 WHEN HE FACED DOWN THE COUP ATTEMPT AGAINST MR GORBACHEV MR YELTSIN DOES SEEM TO HAVE SOME THINGS WORKING IN HIS FAVOR SO FAR IN HIS BATTLE WITH PARLIAMENT HE HAS ACTED DECISIVELY A QUALITY THAT RUSSIANS GENERALLY ADMIRE THE GOVERNMENT WITH THE EXCEPTION OF VICE PRESIDENT ALEXANDER RUTSKOI HAS SIGNED A STATEMENT BACKING HIM SO FAR MR YELTSIN SEEMS TO HAVE THE CRUCIAL SUPPORT OF THE ARMY AND THE SECURITY APPARATUS MR YELTSIN URGED THE MILITARY TO REMAIN NEUTRAL TO AVOID THE APPEARANCE THAT HE IS CREATING A MILITARYBACKED STATE OF EMERGENCY IN A SPEECH TO PARLIAMENT DEFENSE MINISTER PAVEL GRACHEV TRIED TO CALM FEARS OF UNREST THE ARMY SO FAR IS UNDER CONTROL HE SAID THE ONLY THING WE NEED IS COMPROMISE MR GRACHEV JOINED OTHER CABINET OFFICIALS IN SIGNING THE RESOLUTION BACKING MR YELTSIN IT ISN'T CLEAR HOW MUCH WEIGHT MR GRACHEV'S SUPPORT CARRIES THE MILITARY IS THOUGHT TO BE DIVIDED BETWEEN MR YELTSIN SUPPORTERS AND FOES VIKTOR BARANNIKOV MINISTER OF SECURITY THE FORMER KGB ALSO GAVE A NEUTRAL SPEECH AT THE VERY LEAST IT WAS CLEAR HE HADN'T JOINED THE SIDE OF THOSE ALIGNED AGAINST MR YELTSIN WHO INCLUDE IN ADDITION TO MR RUTSKOI VALERY STEPANKOV RUSSIA'S STATE PROSECUTOR RUSLAN KHASBULATOV HEAD OF THE PARLIAMENT AND MR ZORKIN HEAD OF THE CONSTITUTIONAL COURT THE BIGGEST DANGER TO RUSSIAN UNITY IS THAT REGIONAL AUTHORITIES WHO ALREADY WANT MORE INDEPENDENCE FROM MOSCOW WILL ATTEMPT A BREAK FROM THE CENTER IN MUCH THE SAME WAY THAT REPUBLICS OF THE FORMER SOVIET UNION DID IN 1991 LOCAL LEADERS INCLUDING BOTH SUPPORTERS AND DETRACTORS OF MR YELTSIN HAVE URGED THE PRESIDENT NOT TO CALL A NATIONAL PLEBISCITE FEARING THAT IT WOULD UNLOCK DESTABILIZING POLITICAL PASSIONS AND EVEN LEAD TO THE ATTEMPTED SECESSION FROM RUSSIA OF SEVERAL OF ITS CONSTITUENT REPUBLICS I TOLD YELTSIN THAT A REFERENDUM WOULD BE POINTLESS BORIS NEMTSOV THE REFORMIST GOVERNOR OF NIZHNY NOVGOROD SAID BEFORE MR YELTSIN'S ANNOUNCEMENT THIS IS A PITIFUL TURN OF EVENTS SAID ANATOLY SHABAD A LEGISLATOR WHO SUPPORTS MR YELTSIN IT'S PITIFUL THAT MR YELTSIN HAS FOUND NO OTHER WAY TO PROTECT THE REFORMS WE DEMOCRATS ASKED HIM NOT TO DO THIS BUT OF COURSE WE WILL NOW SUPPORT HIM BUT MR YELTSIN'S TOUGH TACTICS MAY HAVE BEEN HIS ONLY SERIOUS OPTION THE PRESIDENT'S CONSERVATIVE OPPONENTS ARE GETTING STRONGER BY THE DAY ANDARMED WITH A BREZHNEVERA CONSTITUTION ARE LEGALLY EMPOWERED TO HACK AWAY AT MR YELTSIN'S DWINDLING POWERS PARLIAMENT IS TAKING ADVANTAGE OF POPULAR DISCONTENT WITH MR YELTSIN'S ECONOMIC REFORMS WHICH LAST YEAR LED TO A PRODUCTION DROP OF NEARLY 20 AND INFLATION OF MORE THAN 2000 IF MR YELTSIN'S GAMBLE FAILS IF HE IS FORCED OUT OF POWER OR IF THE PEOPLE VOTE AGAINST HIM ON APRIL 25 HIS SUCCESSOR IS ALMOST CERTAIN TO BE VICE PRESIDENT RUTSKOI THE 44YEAROLD AFGHANISTAN WAR VETERAN WHO SPORTS A BUSHY MUSTACHE AND DRESSES IN STYLISH WESTERN SUITS IS AN ARDENT NATIONALIST AND POPULIST THOUGH HE DOESN'T REPRESENT THE MOST EXTREME RIGHTWING HE SUPPORTS RUSSIA'S ECONOMIC REFORMS BUT BELIEVES THEY SHOULD BE CARRIED OUT FAR MORE CAUTIOUSLY SO AS TO AVOID DISRUPTING LIVING STANDARDS HE RECENTLY CALLED FOR A REINSTITUTION OF PRICE CONTROLS AND SAID THAT MANY REFORMS TO DATE HAVE SPAWNED ONLY CORRUPTION AND A PRIVATIZATION PROCESS THAT IS NOTHING BUT A NEW FRAUD RUSSIA HE HAS SAID HAS BEEN TURNED INTO A HUGE POLITICAL AND ECONOMIC GARBAGE PIT IF REFORMS PROCEED IN THE SAME SPIRIT THEN ITALIAN MAFIA LEADERS WILL COME TO RUSSIA FOR TRAINING THOUGH HE DESCRIBES HIMSELF AS A RUSSIAN CHAUVINIST MR RUTSKOI ISN'T XENOPHOBIC HE WOULD BE LIKELY TO SUPPORT CONTINUED WESTERN INVESTMENT HE HAS CRITICIZED THE INTERNATIONAL MONETARY FUND FOR PUTTING FORWARD TOO TOUGH TERMS FOR RENDERING ASSISTANCE BUT HE HASN'T BEEN CRITICAL OF THE FUND'S PRESENCE MR YELTSIN CHOSE MR RUTSKOI AS HIS RUNNING MATE IN HIS 1991 ELECTION PARTLY TO BALANCE HIS TICKET THE TWO HAVE SINCE DRIFTED APART ACCORDING TO AN AIDE TO MR YELTSIN THE PRESIDENT HAS VIRTUALLY IGNORED MR RUTSKOI WHO HAS BEEN LEFT TO HIS OWN DEVICES IN AN OFFICE LOCATED ONE FLOOR BELOW MR RUTSKOI HAS BEEN COURTING VARIOUS LABOR AND POLITICAL GROUPS CRITICAL OF MR YELTSIN GROUPS THAT MR RUTSKOI CAN COUNT ON AS HIS BIGGEST SUPPORTERS HOW WASHINGTON WOULD DEAL WITH A RUTSKOI PRESIDENCY OR ANY YELTSIN REPLACEMENT IS NOT KNOWN ADMINISTRATION OFFICIALS SAY THEY ARE WILLING TO BACK ANY RUSSIAN LEADER WHO IS COMMITTED TO DEMOCRATIC REFORM AND THE BUILDING OF FREE MARKETS AND THEY POINT OUT THAT THEY HAVE GONE OUT OF THEIR WAY TO BUILD BRIDGES TO OTHER RUSSIAN POLITICIANS INCLUDING SOME WHO OPPOSE MR YELTSIN PRESIDENT CLINTON RECENTLY MET WITH MR ZORKIN HEAD OF RUSSIA'S CONSTITUTIONAL COURT WHO ACCUSED MR YELTSIN OF STAGING A COUP BUT WHETHER THEY WOULD ALSO BE WILLING TO BACK A NEW LEADER WITH 700 MILLION IN ECONOMIC AID THE ADMINISTRATION'S CURRENT PROPOSAL IS FAR FROM CERTAIN MR SIMES OF THE CARNEGIE ENDOWMENT SAYS THAT THE PROMISE OF AMERICAN AID IF USED CORRECTLY COULD HELP STEER POLITICAL DEVELOPMENTS IN RUSSIA AWAY FROM VIOLENCE AND TOWARD A DEMOCRATIC SOLUTION THEY HAVE TO COMMUNICATE TO BOTH MR YELTSIN AND HIS OPPONENTS THAT VIOLENCE IS UNACCEPTABLE AND THAT THE FIRST ONE TO USE BRUTALITY OR VIOLENCE WILL LOSE OUR SUPPORT TO USE THAT LEVERAGE MR SIMES SAYS THE ADMINISTRATION MUST DO TWO THINGS IN COMING DAYS IT MUST FIRST COME UP WITH A CREDIBLE ECONOMIC AID PACKAGE AND IT MUST REESTABLISH ITS EVENHANDEDNESS IT MUST PULL BACK SLIGHTLY FROM MR YELTSIN TO LET OTHER DEMOCRATS KNOW THAT WE'RE ON THE SIDE OF WHOEVER SUPPORTS DEMOCRACY US OFFICIALS SAY THEY ARE ALREADY DOING BOTH BUT THEY QUICKLY ADD THIS IS NOT A TIME TO RAISE ANY DOUBTS ABOUT THEIR SUPPORT FOR MR YELTSIN LAURIE HAYS IN MOSCOW CONTRIBUTED TO THIS ARTICLE 9303220021 930322 WHO'S NEWS ICF INTERNATIONAL INC ICF INTERNATIONAL INC FAIRFAX VA GIAN ANDREA BOTTA 39 YEARS OLD WAS ELECTED TO THE BOARD OF THIS CONSULTING ENGINEERING AND CONSTRUCTION COMPANY MR BOTTA IS VICE PRESIDENT OF ACQUISITIONS OF IFINTUSA INC A SUBSIDIARY OF IFINT SA A HOLDING COMPANY FOR THE AGNELLI FAMILY INTERESTS HE SUCCEEDS MARIO GARRAFFO 55 WHO RECENTLY RESIGNED AS GENERAL MANAGER AT IFINT SA AND HELD THE ICF BOARD SEAT ICF RESERVES A SEAT ON ITS SEVENMEMBER BOARD FOR AN IFINT REPRESENTATIVE 9303220020 930322 MAGMA COPPER SETS 135 MILLION TO EXTEND ARIZONA MINE OUTPUT TUCSON ARIZ MAGMA COPPER CO SAID IT WILL SPEND 135 MILLION TO DEVELOP A MAJOR BODY OF ORE THAT ANALYSTS CONSIDER IMPORTANT TO THE COMPANY'S FUTURE AFTER TWO YEARS OF STUDY THE COMPANY SAID ITS BOARD APPROVED PLANS TO DEVELOP THE KALAMAZOO PROJECT WHICH IS ADJACENT TO THE DECLINING SAN MANUEL ARIZ UNDERGROUND MINING OPERATION PROCEEDING WITH THE DEVELOPMENT THE COMPANY ESTIMATED WILL EXTEND PRODUCTION AT THE SITE UNTIL 2009 AND SAVE JOBS OF 1300 SAN MANUEL EMPLOYEES A THIRD OF THE COMPANY'S WORK FORCE THE SAN MANUEL OPERATION IS EXPECTED TO BE DEPLETED BY 1997 THERE HAD BEEN CONCERN AMONG ANALYSTS ABOUT WHETHER THE KALAMAZOO PROJECT WAS ECONOMICALLY FEASIBLE LAST YEAR THE COMPANY SAID IT NEEDED TO REDUCE MINING COSTS TO 4 A TON FROM 650 A TON IN ORDER TO OPERATE THE FACILITY PROFITABLY NOW A MAGMA SPOKESMAN SAID THE COMPANY HAS ACHIEVED COSTS OF SLIGHTLY LESS THAN 4 A TON THROUGH SUBSTANTIAL PRODUCTIVITY GAINS AT THE SAN MANUEL OPERATION WHICH GENERATES ABOUT 40 OF THE COMPANY'S COPPER PRODUCTION THE NEW OREBODY IS EXPECTED TO EVENTUALLY PRODUCE 200 MILLION POUNDS OF REFINED COPPER A YEAR COMPARED WITH SAN MANUEL'S CURRENT LEVEL OF 220 MILLION POUNDS ANALYSTS SAID THEY EXPECTED THE PROJECT TO PROCEED AFTER THE COMPANY SPENT TWO YEARS CONSIDERING WAYS TO MAKE IT ECONOMICALLY VIABLE THEIR WHOLE FUTURE HINGED ON KALAMAZOO AND OTHER MAJOR OREBODIES BEING VIABLE SAID CLARENCE MORRISON AN ANALYST AT PRUDENTIAL BACHE SECURITIES INC IN NEW YORK HE SAID THE COMPANY'S 15YEAR LABOR CONTRACT WITH ITS WORKERS INCLUDING PROVISIONS THAT PROHIBIT STRIKES OR LOCKOUTS FOR AT LEAST SEVEN YEARS AND THAT OFFER WORKERS BONUSES FOR IMPROVEMENTS IN OPERATING RESULTS WAS A KEY TO MAKING THE PROJECT FEASIBLE MAGMA STOCK FELL 125 CENTS TO CLOSE AT 16625 IN TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY 9303220019 930322 BUSINESS BRIEF JURY CLEARS FORD MOTOR OF LIABILITY IN ROLLOVER ACCIDENT OF ITS BRONCO II DETROIT FORD MOTOR CO WHICH HAS BEEN BATTLING ALLEGATIONS THAT ITS BRONCO II VEHICLE IS PRONE TO ROLLOVERS WON A BIG COURTROOM VICTORY WHEN A ST LOUIS JURY FOUND THE CAR MAKER WASN'T RESPONSIBLE FOR A 1989 ACCIDENT AFTER EIGHT HOURS OF DELIBERATION FRIDAY A STATE CIRCUIT COURT JURY FOUND THAT THE BRONCO II WASN'T DEFECTIVE THE JURY ALSO RULED THAT FORD HAD NO LIABILITY FOR THE ROLLOVER ACCIDENT AND THE AUTO MAKER WASN'T ASSESSED ANY DAMAGES THE ACCIDENT LEFT A PASSENGER AMY FUCHS NOW 20 YEARS OLD PERMANENTLY DISABLED WE'RE VERY PLEASED WITH THE VERDICT SAID A FORD SPOKESMAN HE CALLED MS FUCHS'S INJURIES A TRAGIC SITUATION BUT NOT ONE THAT FORD BELIEVES IT'S RESPONSIBLE FOR MS FUCHS'S ATTORNEY COULDN'T BE REACHED TO COMMENT DESPITE THE FAVORABLE VERDICT THE DECADELONG BRONCO II CONTROVERSY ISN'T ABOUT TO GO AWAY FOR FORD ANOTHER ROLLOVER TRIAL BEGAN LAST WEEK IN DENVER AND ABOUT 100 OTHER BRONCO II LAWSUITS ARE PENDING ACCORDING TO THE COMPANY FORD'S RECORD IN BRONCO II ROLLOVER TRIALS IS MIXED IT LOST ONE CASE IN NOVEMBER BUT WON ANOTHER IN THE SAME MONTH WHEN THE JURY DECIDED THAT THE DRIVER WAS MORE THAN 50 AT FAULT IN THE ACCIDENT IN THE CASE IT LOST FORD HAS FILED A MOTION TO HAVE THE VERDICT VACATED AND SAID IT WILL APPEAL THE VERDICT IF THE MOTION IS DENIED FORD MANUFACTURED THE BRONCO II FROM 1983 UNTIL 1990 WHEN THE OFFROAD VEHICLE WAS REPLACED BY THE FORD EXPLORER EVEN BEFORE THE FIRST BRONCO II CAME OFF THE ASSEMBLY LINE FORD WAS PREPARING FOR THE TYPES OF LAWSUITS THAT WERE ALREADY PLAGUING EARLIER SPORTUTILITY VEHICLES MADE BY OTHER COMPANIES IN THE ST LOUIS CASE MS FUCHS WAS A PASSENGER IN A BRONCO II THAT ROLLED OVER ON INTERSTATE 270 IN DESPERES MO AFTER THE DRIVER MADE A SHARP TURN TO AVOID A VEHICLE AND THEN ANOTHER SHARP TURN TO AVOID A HIGHWAY MEDIAN ACCORDING TO THE FORD SPOKESMAN MS FUCHS WHO WASN'T WEARING A SEATBELT WAS EJECTED FROM THE VEHICLE THE PLAINTIFF ARGUED THAT THE BRONCO II'S DESIGN CAUSED THE ACCIDENT WHILE FORD BLAMED THE ACCIDENT ON DRIVER ERROR IN HER SUIT MS FUCHS DIDN'T SPECIFY ANY MONETARY DAMAGES HOWEVER IN CLOSING ARGUMENTS HER ATTORNEY ASKED FOR 25 MILLION IN DAMAGES ACCORDING TO A FORD SPOKESMAN 9303220018 930322 CREDIT RATINGS GULF CANADA RATINGS LOWERED BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT CUT ITS RATINGS ON SENIOR DEBT AND PREFERENCE SHARE ISSUED BY GULF CANADA RESOURCES LTD IN THE WAKE OF GULF'S PLANS TO SUSPEND PAYMENT OF PREFERRED STOCK DIVIDENDS ABOUT 500 MILLION CANADIAN DOLLARS US400 MILLION OF SECURITIES IS AFFECTED THE RATING AGENCY SAID MOODY'S CUT THE RATING ON GULF'S SENIOR DEBT TO SINGLEB1 FROM BA2 AND REDUCED ITS RATING ON THE PREFERENCE SHARES TO CAA FROM SINGLEB1 MOODY'S CONFIRMED THE RATING OF GULF'S COMMERCIAL PAPER AS NOT PRIME MOODY'S SAID IT EXPECTS FURTHER STRESS ON GULF'S CASH FLOW DESPITE EFFORTS TO IMPROVE ITS FINANCIAL FLEXIBILITY MOODY'S SAID THE COMPANY'S ABILITY TO ACHIEVE ITS GOALS WILL CONTINUE TO BE HAMPERED BY ITS HIGH FIXED CHARGES AND A WEAK OUTLOOK FOR ENERGY PRICES MOODY'S ALSO NOTED THAT THE TIMING OF GULF'S PLANNED C400 MILLION OF ASSET SALES REMAINS UNCERTAIN BUT IT SAID THE COMPANY DOES HAVE ADEQUATE LIQUIDITY IN THE FORM OF CASH AND MARKETABLE SECURITIES CANADIAN BOND RATING SERVICE OF MONTREAL SUSPENDED ITS RATINGS ON GULF'S PREFERENCE SHARES FOLLOWING THE DIVIDEND SUSPENSION IT RETAINED ITS RATING OF SINGLEBPLUS ON GULF'S LONGTERM DEBT DUE TO THE THE RECENT IMPROVEMENT IN THE COMPANY'S OPERATING EARNINGS GULF IS 73 INDIRECTLY HELD BY OLYMPIA & YORK DEVELOPMENTS LTD BUT IS MORE DIRECTLY CONTROLLED BY O&Y'S CREDITORS IN THE WAKE OF THE REAL ESTATE CONCERN'S BANKRUPCTCY PROCEEDINGS OFFICIALS OF GULF AN OIL AND GAS PRODUCTION CONCERN BASED IN CALGARY ALBERTA COULDN'T BE REACHED FOR COMMENT ON THE MOODY'S DOWNGRADE 9303220017 930322 MEXICO'S GDP RISES 19 MEXICO CITY MEXICO'S GROSS DOMESTIC PRODUCT GREW 19 IN REAL OR INFLATIONADJUSTED TERMS IN THE FINAL QUARTER OF 1992 TO POST 26 REAL GROWTH FOR THE WHOLE YEAR THE FINANCE MINISTRY SAID THAT COMPARES WITH PRELIMINARY FIGURES THAT HAD PREDICTED 27 REAL GROWTH THE MINISTRY SAID GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION 9303220016 930322 PENN TRAFFIC TO BUY NOTES JOHNSTOWN PA PENN TRAFFIC CO SAID IT HAS COMMENCED OFFERS TO PURCHASE OUTSTANDING 12 3/4 SENIOR NOTES DUE 1997 OF BIG BEAR STORES CO A UNIT AND OUTSTANDING 13 3/4 SENIOR SUBORDINATED NOTES DUE 1998 OF P&C FOOD MARKETS INC ANOTHER UNIT 9303220015 930322 REVIEW & OUTLOOK EDITORIAL FREE MARKET OR BUST BORIS YELTSIN HAS AT LONG LAST DECIDED TO FINISH THE REVOLUTION HIS DECISION TO SMASH THE LAST REMNANTS OF COMMUNIST RULE VIA A PUBLIC REFERENDUM IS UTTERLY CHARACTERISTIC OF THIS BRAVE DEMOCRAT BY ASKING RUSSIAN VOTERS TO APPROVE A REFERENDUM ON PRESIDENTIAL RULE ON A NEW CONSTITUTION AND ON OTHER MEASURES MR YELTSIN HAS HUNG A SIGN AROUND HIS NECK FREE MARKET OR BUST A LESSER LEADER A GORBACHEVIAN TECHNOCRAT FOR EXAMPLE WOULD NEVER HAVE CALLED THIS REFERENDUM HE LONG AGO WOULD HAVE TAKEN THE ROUTE DESIGNED TO SECURE HIS PERSONAL POWER HE WOULD HAVE CUT AN ARRANGEMENT WITH THE SOCALLED CENTRISTS THE INDUSTRIAL ELITE BUT MR YELTSIN SEEMS TO HAVE ASSIGNED HIMSELF A HISTORICAL MISSION HE KNOWS THAT A DEAL WITH THE HEADS OF LARGE INDUSTRY WOULD CRIPPLE ECONOMIC REFORM THESE INDUSTRY HEADS CALL THEMSELVES PRAGMATIC BUSINESSMEN BUT THEY ARE IN FACT THE COMMUNIST ECONOMIC MENTALITY PERSONIFIED WITH SATURDAY'S DECREE MR YELTSIN SIGNALED HIS INTENTION TO COMPLETE RUSSIA'S FLIGHT FROM THE COMMAND ECONOMY OR TO PERISH TRYING MR YELTSIN HAS PROVEN HIS COMMITMENT TO DEMOCRACY THOSE WHO ACCUSE HIM OF LAYING THE GROUNDWORK FOR A PERSONAL DICTATORSHIP ARE THOSE WHO HAVE ALWAYS UNDERESTIMATED HIM AND HAVE ALWAYS BEEN WRONG FOR THE FOUR YEARS OF THE BUSH ADMINISTRATION WE HAD BRENT SCOWCROFT AND COMPANY PRIVATELY IMPLYING THAT MR YELTSIN WAS A DANGEROUS DEMAGOGUE HOW REFRESHING AND HOW BRAVE IT IS OF BILL CLINTON TO PUBLICLY EMBRACE THE YELTSIN GOVERNMENT EVEN IF IT IS COMPRISED OF WHITE MALES MERELY BY CALLING THE REFERENDUM MR YELTSIN HAS CHANGED THE LANDSCAPE OF RUSSIAN POLITICS WE HAVE COME TO THINK OF POLITICS THERE AS A STRUGGLE BETWEEN MR YELTSIN AND PARLIAMENTARY HARDLINERS LED BY SPEAKER RUSLAN KHASBULATOV THAT CONFIGURATION IS NOW OBSOLETE BECAUSE MR YELTSIN HAS TAKEN THE BATTLE OUTSIDE OF PARLIAMENTARY CONFINES IN THE REAL WORLD MR KHASBULATOV HAS NO FOLLOWING NO PROGRAM NO SPECIAL INTEREST GROUP SUPPORT THE HARDLINERS HAD FOCUSED THEIR ANTIYELTSIN STRATEGIES ON PARLIAMENTARY MANEUVERS BY TAKING THE CONFLICT TO THE PUBLIC ARENA MR YELTSIN HAS THROWN THE HARDLINERS INTO ORGANIZATIONAL DISARRAY MR YELTSIN'S STRATEGY IS TO RUN AGAINST CHAOS IN THE CAMPAIGN HE WILL DOUBTLESS ARGUE THAT HIS OPPONENTS MERELY OPPOSE THAT THEY HAVE NO COHERENT PROGRAM AND NO REAL LEADER TO PUT AGAINST HIM THEY ARE BUT REMNANTS OF THE PAST THIS IS THE PARLIAMENT THAT RECENTLY VOTED TO KEEP THE PHRASE WORKERS OF THE WORLD UNITE ON THE CREST OF RUSSIA IF THE CHOICE IS SEEN AS YELTSIN OR CONTINUED CHAOS VOTERS WILL OVERWHELMINGLY SUPPORT THE REFERENDUM THE MILITARY WOULD TAKE THE CHANCE TO SIT THIS ONE OUT IT IS VERY HARD TO READ THE SIGNALS COMING FROM THE MILITARY ESTABLISHMENT BUT IT SEEMS THEY WANT STABILITY FIRST AND TO AVOID POLITICAL INVOLVEMENT SECOND THIS IS AN INSTITUTION THAT HAS SEEN ITS PUBLIC PRESTIGE PLUMMET THERE ARE SAILORS STARVING TO DEATH IN OUTLYING BASES INTERNAL COHERENCE IS FRAGILE DEFENSES AT RUSSIA'S NEW BORDERS ARE WOEFUL THE OUTCOME OF DESERT STORM DISPROVED THE MATHEMATICAL MODELS OF THE SENIOR PLANNERS WHICH PREDICTED A MUCH TOUGHER WAR IN SHORT THE MILITARY IS AN INSTITUTION UNDERGOING A CRISIS OF CONFIDENCE IT IS UNLIKELY TO WANT TO IMPOSE A SOLUTION ON THE COUNTRY THE ONUS ON THE HARDLINE OPPOSITION IS TO PROVE THAT IT CAN PRESENT A COHERENT ALTERNATIVE THE HARDLINERS WILL BE PRESSED TO COME UP WITH A LEADER TO STAND AGAINST MR YELTSIN IN THE PUBLIC MIND IN THE UNLIKELY EVENT THAT A COUNTERYELTSIN EMERGES ALEXANDER RUTSKOI MR YELTSIN'S CAMPAIGN COULD PROVE DIFFICULT AS USUAL WE EVALUATE PUBLIC OPINION ON THE BASIS OF THE CURRENT RUSSIAN JOKES WHICH TEND TO BE SARCASTIC IN THE EXTREME ON THE SUBJECT OF COMMUNISM A MAN WAKES UP AND GETS INTO THE SHOWER INSTEAD OF THE USUAL THIN DRIZZLE THERE IS A GUSHING FLOW OF HOT WATER HE TURNS ON THE LIGHT AND THE ELECTRICITY IS FULL AND STRONG HE RUNS INTO THE KITCHEN TO TURN ON THE GAS STOVE AND THE FLAME IS STEADY HE DASHES BACK TO THE BEDROOM TO WAKE HIS WIFE HONEY HONEY THE COMMUNISTS ARE BACK IN POWER IN REALITY FEW WANT TO GO BACK TO THE BAD OLD DAYS BUT FOR FIVE YEARS THE RUSSIAN PEOPLE HAVE BEEN FACED WITH POLITICIANS SCREAMING AT THE TOP OF THEIR LUNGS THEY HAVE COME TO REGARD THE WHOLE POLITICAL SITUATION AS LUDICROUS EVEN NOW WHEN THEIR FUTURE HANGS IN THE BALANCE RUSSIANS SHRUG MR YELTSIN HAD TO INCLUDE A BIZARRE POPULIST PLANK IN THE REFERENDUM GUARANTEEING PEOPLE THAT THEY WOULD BE COMPENSATED FOR THE DAMAGE INFLATION HAS DONE TO THEIR SAVINGS TO ATTRACT PEOPLE TO THE POLLS PUBLIC APATHY SIGNALS THE CRISIS OF AUTHORITY UP AND DOWN SOCIETY UNDER COMMUNISM PEOPLE GOT OUT OF THE HABIT OF REGARDING POWER AS LEGITIMATE AT BASE MR YELTSIN IS TRYING TO PUNCH THROUGH THE ANARCHY THE HARDLINERS' SOLUTION WOULD LEAD TO HYPERINFLATION AND INEVITABLY AUTHORITARIANISM MR YELTSIN IS TRYING TO BEAT ANARCHY AT THE POLLING BOOTH THIS APPROACH HAS NOT BEEN TRIED VERY OFTEN IN HUMAN HISTORY IT DESERVES ADMIRATION AND SUPPORT 9303220014 930322 DISCOVERY CHANNEL FOR JAPAN BETHESDA MD DISCOVERY CHANNEL SAID IT PLANS TO LAUNCH 15 HOURS OF PROGRAMMING A WEEK ON JAPANESE CABLE TELEVISION BEGINNING APRIL 1 DISCOVERY A UNIT OF DISCOVERY COMMUNICATIONS INC EXPECTS ITS PROGRAMMING COULD REACH MORE THAN 800000 HOMES VIA THE EISEI CHANNEL A NEWS AND INFORMATION NETWORK THAT IS A UNIT OF THE ASAHI NEWSPAPER AND TV ASAHI MEDIA GROUPS DCI SAID THIS FORAY INTO JAPAN IS THE FIRST STEP TOWARD DEVELOPING A FULLTIME NONFICTION ENTERTAINMENT NETWORK THERE 9303220013 930322 INTERNATIONAL CONSERVATIVES' STRONG SHOWING IN FRANCE IS A PRELUDE TO STRUGGLE WITH MITTERRAND BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE FRENCH CONSERVATIVE PARTIES ENJOYED A STRONG ELECTORAL SHOWING YESTERDAY SETTING THE SCENE FOR A POWER STRUGGLE BETWEEN THEM AND SOCIALIST PRESIDENT FRANCOIS MITTERRAND THAT COULD MEAN FRESH PROBLEMS FOR EUROPEAN COMMUNITY UNITY AND FOR EFFORTS TO NEGOTIATE A NEW WORLD TRADE ACCORD FINAL RESULTS OF THE NATIONWIDE LEGISLATIVE POLL AREN'T DUE UNTIL NEXT SUNDAY WITH RUNOFF ELECTIONS HELD THEN IN MOST DISTRICTS BUT YESTERDAY'S RESULTS LEFT LITTLE DOUBT THAT THE RIGHTWING PARTIES THEN WILL TAKE CONTROL OF PARLIAMENT THE PRIME MINISTRY AND ALL CABINET POSITIONS THAT WILL GIVE THEM CLEAR CONTROL OF FRANCE'S GOVERNMENT MR MITTERRAND WHOSE TERM RUNS FOR TWO MORE YEARS HAS MADE CLEAR THAT HE INTENDS TO PLAY A ROLE IN FOREIGN POLICY WHICH IS WIDELY EXPECTED TO LEAD TO CONFLICT BETWEEN HIM AND THE NEW GOVERNMENT INITIAL PROJECTIONS SHOWED THE CONSERVATIVE COALITION OF GAULLISTS AND THE CENTERRIGHT UNION POUR LA DEMOCRATIE FRANCAISE WITH A COMMANDING 40 OR MORE OF THE FIRST ROUND VOTE BECAUSE OF FRANCE'S MAJORITYVOTING SYSTEM THAT MEANS THEY COULD WIND UP WITH A MAMMOTH 80 OR MORE OF THE NATIONAL ASSEMBLY'S 577 SEATS NEXT SUNDAY THE SOCIALISTS WHO CURRENTLY CONTROL PARLIAMENT SAW THEIR ELECTORAL SUPPORT CUT IN HALF TO ABOUT 19 OF FIRSTROUND VOTES SOME COMMENTATORS SAID THAT BRUTAL SLAP IN THE FACE COULD PUT PRESSURE ON MR MITTERRAND TO STEP ASIDE BEFORE HIS TERM EXPIRES ALTHOUGH THE 76YEAROLD PRESIDENT HAS SAID HE WON'T DO THAT AS LONG AS HIS HEALTH REMAINS GOOD AMONG THE RIGHTWING PARTIES THE GAULLISTS WON SLIGHTLY MORE VOTES THAN THE UDF IT THEREFORE IS WIDELY EXPECTED THAT MR MITTERRAND WILL NAME EITHER GAULLIST PARTY LEADER JACQUES CHIRAC OR FORMER GAULLIST FINANCE MINISTER EDOUARD BALLADUR AS HIS NEW PRIME MINISTER MR CHIRAC HAS SAID HE DOESN'T WANT THE JOB WHICH HE HELD FROM 1986 TO 1988 BUT IT WASN'T KNOWN WHAT HE ACTUALLY WOULD DO IF OFFERED IT AGAIN THE EXTREMERIGHT NATIONAL FRONT FINISHED MUCH STRONGER THAN EXPECTED WITH MORE THAN 12 OF VOTES ACCORDING TO INITIAL PROJECTIONS ENVIRONMENTAL PARTIES EXPECTED TO OUTPERFORM THE NATIONAL FRONT DID FAR BETTER THAN EVER BEFORE BUT THEY DREW ONLY ABOUT 7 OR 8 OF VOTES WHICH WAS CONSIDERED A BIG DISAPPOINTMENT LIKELY LEADERS OF THE COMING RIGHTWING GOVERNMENT HAVE SAID THEY WILL MAINTAIN FRANCE'S MAIN FOREIGNPOLICY POSITIONS SUPPORTING A STRONG FRANC AND PURSUING CLOSE FRANCOGERMAN COOPERATION WITHIN THE EUROPEAN COMMUNITY BUT THE EXPECTED POWER STRUGGLE AT THE TOP OF GOVERNMENT COULD MAKE IT HARD FOR FRANCE TO PLAY ITS ROLE AS A CHAMPION OF A STABLE UNIFIED EUROPE WE COULD SEE A PERIOD OF LESSENED FRENCH INFLUENCE IN A WEAKENED EUROPE BECAUSE FRANCE WILL BE MORE PARALYZED MORE DIVIDED WARNS DOMINIQUE MOISI ASSOCIATE DIRECTOR OF FRANCE'S INSTITUTE FOR INTERNATIONAL RELATIONS AN INDEPENDENT POLICY RESEARCH BODY THERE IS A RISK HE SAYS THAT ANTIAMERICANISM COULD BE USED AS A WEAPON IN THE STRUGGLE TO WIN VOTES MANY EXPECT TO SEE A CRISIS IN INTERNATIONAL TRADE FRANCE'S CONSERVATIVE LEADERS TRYING TO SET THEMSELVES APART FROM THE PRESIDENT ARE DEMANDING A RENEGOTIATION OF NEW INTERNATIONAL ACCORDS ON FARM SUBSIDIES AND EXPORTS THE FIRST BIG CRISIS WILL COME IN INTERNATIONAL TRADE WARNS A SENIOR POLICY ADVISER TO THE INCOMING GOVERNMENT FRANCE'S EFFORTS TO SUPPORT ITS FARMERS AND FISHERMEN WILL LEAD TO A NASTY CONFLICT NOT ONLY WITH THE US BUT ALSO WITH GERMANY AND WITH THE EC WHICH DON'T SHARE FRANCE'S TOUGH VIEWS I DON'T SEE ANY EASY SOLUTION THIS EXPERT ALSO WORRIES THAT IF GERMANY DOESN'T TAKE STRONGER STEPS TO CUT ITS INTEREST RATES FRANCE AND GERMANY COULD FACE A CRISIS ON MONETARY POLICY AS WELL FRANCE'S BASIC MACROECONOMIC POLICIES AREN'T EXPECTED TO CHANGE DRAMATICALLY HOWEVER ONE BIG CHANGE HOWEVER IS THAT THE NEW GOVERNMENT HAS PROMISED RAPIDLY TO PRIVATIZE MANY OF THE INSURANCE BANKING AND INDUSTRIAL COMPANIES IT STILL OWNS IT ALSO IS CONSIDERED LIKELY TO FIRE THE CHAIRMEN OF BIG STATEOWNED COMPANIES WHO ARE CONSIDERED CLOSE TO THE SOCIALISTS INCLUDING THE HEADS OF CREDIT LYONNAIS SOCIETE NATIONALE ELF AQUITAINE UNION DES ASSURANCES DE PARIS AND PERHAPS RENAULT CHARLES FLEMING AND PETER GUMBEL CONTRIBUTED TO THIS ARTICLE 9303220012 930322 ECONOMY US BUDGET DEFICIT IN FEBRUARY SHRANK FROM A YEAR EARLIER WASHINGTON THE FEDERAL BUDGET DEFICIT NARROWED SLIGHTLY TO 4759 BILLION IN FEBRUARY FROM 4917 BILLION A YEAR EARLIER THE TREASURY SAID IN ITS MONTHLY STATEMENT THE TREASURY SAID RECEIPTS TOTALED 6619 BILLION IN FEBRUARY UP FROM 6206 BILLION A YEAR EARLIER OUTLAYS TOTALED 11379 BILLION LAST MONTH UP FROM 11123 BILLION FOR THE FIRST FIVE MONTHS OF FISCAL 1993 WHICH BEGAN OCT 1 GOVERNMENT RECEIPTS TOTALED 44422 BILLION 55 HIGHER THAN THE YEAR BEFORE OUTLAYS THROUGH FEBRUARY TOTALED 58247 BILLION 22 HIGHER THAT PRODUCED A TOTAL DEFICIT OF 13825 BILLION FOR THE FIRST FIVE MONTHS OF FISCAL 1993 COMPARED WITH 14865 BILLION A YEAR EARLIER THE DEFICIT FOR ALL OF FISCAL 1992 WAS A RECORD 29020 BILLION THE WHITE HOUSE ESTIMATES THE BUDGET DEFICIT IN FISCAL 1993 WILL BE 332 BILLION INCLUDING THE COST OF ITS ECONOMICSTIMULUS PACKAGE OUTLAYS FOR THE EARNEDINCOME TAX CREDIT A BONUS THE GOVERNMENT PAYS LOWINCOME WORKERS WITH CHILDREN INCREASED TO 421 BILLION IN THE FIVEMONTH PERIOD UP SUBSTANTIALLY FROM 182 BILLION PAID OUT IN THE YEARBEFORE PERIOD THE TREASURY NOTED A 5 INCREASE IN THE NUMBER OF PEOPLE CLAIMING THE CREDIT MANY OF WHOM USED ACCELERATED ELECTRONIC INCOMETAXRETURN FILING SERVICES PRESIDENT CLINTON HAS PROPOSED A SUBSTANTIAL EXPANSION OF THE PROGRAM THE GOVERNMENT PAID 1681 BILLION IN INTEREST LAST MONTH ON THE FEDERAL DEBT THE RESOLUTION TRUST CORP THE AGENCY CHARGED WITH SELLING THE ASSETS OF FAILED THRIFT INSTITUTIONS GENERATED 622 MILLION FOR THE GOVERNMENT IN FEBRUARY AND 879 BILLION OVER THE FIVE MONTHS SALES OF SEIZED ASSETS EXCEED THE COST OF MAKING GOOD ON DEPOSITS IN FAILED THRIFTS 9303220011 930322 BUSINESS BRIEF WHIRLPOOL TO RECORD CHARGES OF 40 MILLION FOR THE FIRST QUARTER BENTON HARBOR MICH WHIRLPOOL CORP SAID IT WILL POST CHARGES OF 40 MILLION FOR THE FIRST QUARTER PRIMARILY AS A RESULT OF THE WRITE DOWN OF CERTAIN ACCOUNTS IN THE AEROSPACE PORTFOLIO OF ITS FINANCIAL SERVICES UNIT IN THE YEAREARLIER QUARTER NET INCOME WAS 35 MILLION OR 50 CENTS A SHARE ON SALES OF 167 BILLION THE HOMEAPPLIANCE MAKER SAID IT RECENTLY LEARNED THAT A POTENTIAL STOCK OFFERING BY GPA GROUP PLC THE WORLD'S LARGEST OPERATING LESSOR OF COMMERCIAL AIRCRAFT MAY HURT THE VALUATION OF ITS INVESTMENT IN THAT ACCOUNT IT SAID THE CHARGE INCLUDES 10 MILLION FOR THE WRITE DOWN OF AN INVESTMENT IN GPA GROUP'S COMMON STOCK 13 MILLION FOR LOSSES AND MAINTENANCE COSTS FOR CERTAIN AEROSPACE LEASING ARRANGEMENTS AS WELL AS LOSSES ON ONE MAJOR COMMERCIAL ACCOUNT LAST SUMMER WHIRLPOOL BEGAN A REVIEW OF ITS STRATEGIC OPTIONS FOR WHIRLPOOL FINANCIAL CORP AND CONCLUDED THAT THE BEST LONGTERM STRATEGY WAS TO PHASE OUT OF THE AEROSPACE BUSINESS AND TO DOWNSIZE AND REFOCUS THE COMMERCIAL FINANCING BUSINESS AWAY FROM HIGHLY LEVERAGED TRANSACTIONS THE COMPANY'S REMAINING AEROSPACE PORTFOLIO IS ABOUT 500 MILLION THE COMMERCIAL FINANCING PORTFOLIO STOOD AT ABOUT 284 MILLION AT THE END OF 1992 IN JANUARY THE COMPANY ANNNOUNCED THAT IT WOULD EXAMINE NEW SOURCES OF CAPITAL INCLUDING A POSSIBLE PREFERRED STOCK OFFERING WHILE UNDERTAKING THIS REVIEW WHIRLPOOL LEARNED OF THE POSSIBLE STOCK OFFERING BY GPA WHIRLPOOL SAID IN TAKING THE CHARGES IT IS SATISFIED WITH THE ADJUSTED VALUATION OF THESE PORTFOLIOS IN NEW YORK STOCK EXCHANGE TRADING FRIDAY WHIRLPOOL FELL 150 TO CLOSE AT 52375 9303220010 930322 REFORMS BUFFET CHINA'S GROWING PLANE INDUSTRY CHANGE IN DECISIONMAKING MEANS SHIFT IN FORGING DEALS WITH FOREIGNERS BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL ECONOMIC REFORMS ARE THROWING A GIANT WRENCH INTO CHINA'S ASPIRING AIRPLANEMANUFACTURING SECTOR CHINA WHERE DOMESTIC AIR TRAVEL GREW AN ESTIMATED 39 LAST YEAR AND NEW AIRLINES ARE POPPING UP LIKE MUSHROOMS HAS BECOME THE WORLD'S HOTTEST MARKET FOR WESTERN BUILDERS OF COMMUTER AIRCRAFT CHINESE CARRIERS HAVE BEGUN TO BUY 30SEAT TO 70SEAT PLANES TO LINK PROVINCIAL CITIES AND TO FEED TRAFFIC TO GATEWAY CITIES CHINA'S AEROSPACE FACTORIES ARE ANXIOUS TO GAIN MANUFACTURING TECHNOLOGY AND HOPE TO BUILD ONE OF THE WESTERN MODELS BUT TWO STUMBLING BLOCKS ARE SEPARATING EAGER BUYERS SELLERS AND WOULDBE BUILDERS OF SUCH AIRPLANES TO REDUCE CENTRAL PLANNING AND MOVE TOWARD A MARKET ECONOMY CHINA IS DECENTRALIZING ECONOMIC DECISION MAKING IN THE AVIATION INDUSTRY THIS MEANS THAT AIRLINES THEMSELVES CAN DECIDE WHICH PLANES TO PURCHASE AND TO PRESERVE FOREIGNEXCHANGE RESERVES AND BOOST THE COUNTRY'S MANUFACTURING CAPABILITIES CHINA WANTS TO LIMIT IMPORTS BY REQUIRING FOREIGN SELLERS OF HIGHTECHNOLOGY ITEMS TO TRANSFER MANUFACTURING KNOWHOW BUT NO FOREIGN AIRCRAFT BUILDER WILL INVEST IN CHINESE COPRODUCTION WITHOUT A GUARANTEED ORDER IN THIS BRAVE NEW WORLD A CENTRAL AUTHORITY THAT CAN BROKER A DEAL NO LONGER EXISTS DECENTRALIZATION HAS GONE SO FAR THAT THERE IS NOBODY WHO CAN GUARANTEE A MINIMUM OUTPUT FOR A PRODUCTION LINE OR LARGECOMPONENTS MANUFACTURING SAYS DICK BEULINK DIRECTOR OF THE BEIJING OFFICE OF DUTCH AIRCRAFT BUILDER NV FOKKER IN FOKKER'S CASE HE SAYS IT WOULDN'T MAKE SENSE TO ASSEMBLE TWINJETS IN CHINA WITHOUT A GUARANTEED ORDER FOR 200 PLANES UNTIL THE MID1980S AIRCRAFT PURCHASING DECISIONS CAME FROM ON HIGH AND THE CIVIL AVIATION ADMINISTRATION OF CHINA OR CAAC THE AVIATION MONOLITH FOLLOWED THOSE ORDERS CHINA'S AEROSPACE FACTORIES WERE TOLD WHICH WESTERN MANUFACTURERS TO DO BUSINESS WITH BY THE MINISTRY OF AERONAUTICS AND ASTRONAUTICS INDUSTRY THE UMBRELLA AGENCY FOR AEROSPACE ALL THAT HAS CHANGED CAAC HAS EVOLVED INTO SEVERAL SEPARATE AIRLINES AND MOSTLY CONCERNS ITSELF WITH SAFETY CERTIFICATION AND PILOT TRAINING MANY INDEPENDENT CARRIERS HAVE TAKEN WING AND INCREASINGLY BUY THE AIRPLANES THEY WANT WITH ONLY CURSORY INPUT FROM BEIJING THE AEROSPACE MINISTRY TOO IS BEING REORGANIZED PART OF A LARGER GOVERNMENT REORGANIZATION IN WHICH MINISTRIES WILL BE SPINNING OFF ENTERPRISE GROUPS THAT WILL SEEK TO MAKE A PROFIT THUS THE AEROSPACE MINISTRY'S ARM THAT DEALS WITH OVERSEAS COMPANIES CHINA NATIONAL AEROTECHNOLOGY IMPORT & EXPORT CORP OR CATIC IS FINDING IT DIFFICULT TO MANDATE AIRCRAFT PURCHASES TIED TO AEROSPACE FACTORY CONTRACTS THIS FIRST BECAME APPARENT LAST YEAR WHEN MCDONNELL DOUGLAS CORP LANDED A 40AIRCRAFT EXTENSION OF ITS MD80 TWINJET COPRODUCTION CONTRACT WITH SHANGHAI AVIATION INDUSTRIAL CORP THE SHANGHAI FACTORY AGREED TO BUILD THE ADDITIONAL PLANES BETWEEN 1994 AND 2000 CATIC AGREED TO BUY THOSE PLANES AND MARKET THEM PROBABLY IN CHINA BUT CATIC DIDN'T GET COMMITMENTS FROM CAAC OR OTHER CHINESE AIRLINES BEFORE IT SIGNED SO NOW IT ISN'T CLEAR WHO WILL BUY THOSE AIRPLANES MCDONNELL DOUGLAS MAINTAINS THAT ITS CONTRACT IS WITH CATIC AND WITH THE SHANGHAI PLANT AND OTHER FACTORIES THAT WILL SUPPLY THE PROGRAM THERE IS ABSOLUTELY NO CLEAR PROCEDURE WHERE YOU TALK TO THE AEROSPACE MINISTRY AND CATIC SAYS A WESTERN AEROSPACE VENDOR IN BEIJING ALL THESE WESTERN COMMUTER COMPANIES HAVE BEEN PROPOSING PROJECTS BUT THE AEROSPACE MINISTRY CAN'T COMMIT UNLESS CAAC AND THE AIRLINES WANT THE OUTPUT EVEN IN THE ABSENCE OF AUTHORITY COMMUTERAIRCRAFT MAKERS ARE POURING INTO CHINA TO SELL OR LEASE THEIR WARES MANY ALSO ARE TRYING TO ARRANGE COPRODUCTION DEALS FOR AIRCRAFT COMPONENTS CHINESE FACTORIES UNILATERALLY ARE SOLICITING WESTERN COMPANIES ABOUT MANUFACTURING DEALS AND EVEN FINALASSEMBLY CONTRACTS MEANWHILE BEIJING'S MINISTRIES APPEAR PARALYZED IN THE FACE OF THE BIG CHANGES THAT CHINA'S LIBERALIZATION IS BRINGING MANY OF THE WESTERN PLANE BUILDERS ALREADY HAVE A FOOT IN THE DOOR THROUGH SMALL MANUFACTURING PROJECTS WITH CHINA'S SEVEN AEROSPACE FACTORIES BUT EXCESS CAPACITY AT HOME THE PERILOUS STATE OF THE AIRLINE INDUSTRY IN MUCH OF THE WORLD AND AN OVERSUPPLY OF PLAYERS IS ACCELERATING INTEREST IN CHINA THERE IS TOO MUCH CAPACITY IN THE 19TO100SEAT AIRCRAFT MARKET OBSERVES CHRIS TARRY AN AEROSPACE ANALYST FOR KLEINWORT BENSON SECURITIES LTD IN LONDON WHILE WESTERN COMMUTERAIRCRAFT MAKERS ARE BEGINNING TO MERGE TO REDUCE WHAT HAS AMOUNTED TO RUINOUS COMPETITION THE BOTTOM HAS DROPPED OUT OF THE ENTIRE MARKET IN THE WEST SAYS MR TARRY AMONG THOSE THOUGHT TO BE MOST ACTIVE IN CHINA NOW ARE FOKKER SAABSCANIA AB'S SAAB AIRCRAFT DIVISION A FRANCOITALIAN TURBOPROP JOINT VENTURE CALLED AVIONS DE TRANSPORT REGIONAL AND SPAIN'S STATEOWNED CONSTRUCCIONES AERONAUTICAS SA FOKKER WHICH LAST YEAR SOLD 10 F100S TO CHINA EASTERN AIRLINES AND NOW IS FINALIZING A RELATED MANUFACTURING CONTRACT CONFIRMS IT HAS BEEN APPROACHED BY ANOTHER FACTORY TO SET UP A SECOND ASSEMBLY LINE IN CHINA ATR THE FRANCOITALIAN MAKER OF 45 AND 75SEAT TURBOPROPS ALREADY HAS A COMPONENTASSEMBLY CONTRACT WITH XIAN AIRCRAFT CORP ATR OFFICIALS IN TOULOUSE FRANCE DENY THE COMPANY IS EXPLORING SOMETHING LARGER BUT INDUSTRY SOURCES SAY ATR WHICH HASN'T SOLD ANY PLANES TO CHINA WOULD LIKE TO BUILD A LARGER VERSION OF THE 75SEATER FOR THE CHINESE MARKET 9303220009 930322 CORRECTIONS & AMPLIFICATIONS GEO A HORMEL & CO'S HORMEL BRAND OF BACON HAD SALES IN SUPERMARKETS OF 614 MILLION DURING THE 52 WEEKS ENDED JAN 31 UP 46 FROM THE PREVIOUS YEAR ACCORDING TO INFORMATION RESOURCES INC VOLUME OF THE HORMEL BRAND INCREASED 187 TO 269 MILLION POUNDS DURING THE SAME PERIOD BECAUSE OF AN ERROR IN DATA PROVIDED BY INFORMATION RESOURCES THE NATION'S NO 2 BACON BRAND WAS OMITTED FROM A CHART ACCOMPANYING A MARKETSCAN ARTICLE THURSDAY SYNOPTICS COMMUNICATIONS INC'S STOCK FELL 150 A SHARE TO 8650 THURSDAY IN NATIONAL OVERTHECOUNTER TRADING FRIDAY'S OTC FOCUS COLUMN INCORRECTLY REPORTED THAT THE STOCK FELL 75 CENTS A SHARE TO 2750 CHRISTIE'S INTERNATIONAL PLC'S 1992 PRETAX EARNINGS EASED TO 111 MILLION FROM 113 MILLION A YEAR EARLIER AN ARTICLE LAST MONDAY INCORRECTLY REPORTED THE FIGURES AS NET INCOME 9303220008 930322 BUSINESS BRIEF INTERNATIONAL SEMITECH COMPANY SEEKS 51 INTEREST 78 IN GM PFAFF OF GERMANY INTERNATIONAL SEMITECH MICROELECTRONICS INC TORONTO SAID IT AGREED TO ACQUIRE A 51 INTEREST IN GM PFAFF AG A GERMAN SEWING MACHINE MAKER TERMS WEREN'T DISCLOSED BUT INTERNATIONAL SEMITECH SAID THE DEAL HAS AN INDICATED VALUE OF ABOUT 110 MILLION BASED ON A RECENT MARKET PRICE OF PFAFF SHARES THE PROPOSED ACQUISITION IS SUBJECT TO REGULATORY AND OTHER APPROVALS INTERNATIONAL SEMITECH INDIRECTLY CONTROLS SINGER CO NV WHICH MAKES AND DISTRIBUTES CONSUMER SEWING MACHINES THROUGHOUT THE WORLD INTERNATIONAL SEMITECH SAID IT EXPECTS TO BE ABLE TO INCREASE SALES AT PFAFF WHICH MAINLY MAKES INDUSTRIAL SEWING MACHINES FOR EUROPEAN MARKETS BY WORKING THROUGH SINGER'S INTERNATIONAL DISTRIBUTION CHANNELS ALTHOUGH SINGER ISN'TINVOLVED IN THE CURRENT TRANSACTION WE'LL LOOK AT WAYS TO PUT THE TWO COMPANIES TOGETHER DOWN THE ROAD AN INTERNATIONAL SEMITECH SPOKESMAN SAID PFAFF HAS ANNUAL REVENUE OF ABOUT 600 MILLION WHILE SINGER'S REVENUE IS 950 MILLION INTERNATIONAL SEMITECH SAID 9303220007 930322 BUSINESS BRIEF EII HOLDINGS INC PACT WITH MCCRORY PARENT IS ARRANGED OVER LITIGATION EII HOLDINGS INC AND ITS CREDITORS COMMITTEE SAID THEY HAVE AGREED TO SETTLE CLAIMS AND COUNTERCLAIMS WITH MCCRORY PARENT CORP AND ITS CREDITORS COMMITTEE EII A NEW YORK MAKER OF LUGGAGE AND WATERTREATMENT SYSTEMS AND ITS CREDITORS AGREED TO A MCCRORY CLAIM OF 385 MILLION AGAINST THE EII LITIGATION TRUST ESTABLISHED TO PURSUE CLAIMS THAT EII CURRENTLY HAS AGAINST MESHULAM RIKLIS AND HIS AFFILIATES MR RIKLIS WAS FORMERLY THE CONTROLLING SHAREHOLDER OF EII AND MCCRORY THE MCCRORY CREDITORS COMMITTEE'S CLAIM AGAINST EII WAS ORIGINALLY FOR 962 MILLION MCCRORY PARENT WILL TRANSFER SOME OF ITS OWN CLAIMS AGAINST MESHULAM RIKLIS AND HIS AFFILIATES TO THE LITIGATION TRUST AND RECEIVE A 25 BENEFICIAL INTEREST IN WHATEVER IS RECOVERED EII IS OBLIGED TO FUND AS MUCH AS 37 MILLION OF THE LITIGATION TRUST EII ALSO AGREED THAT IT WOULDN'T PURSUE ITS CLAIM OF ABOUT 16 BILLION AGAINST MCCRORY PARENT THE SETTLEMENT IS SUBJECT TO APPROVAL OF THE BANKRUPTCY COURT IN EACH OF EII'S AND MCCRORY PARENT CASES UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE 9303220006 930322 THIS MOM TEACHES HER YOUNG TO WALK ON THE WILD SIDE HOMEWORK FOR ORPHAN GORILLAS AT CONGO PROJECT FINDING THE BEAST WITHIN THE APE BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL BRAZZAVILLE CONGO AFTER A SHORT SAUNTER WITH HER CLASS THROUGH DENSE AFRICAN FOREST ALBERTINE N'DOKILA BEGINS THE DAY'S LESSONS SHE PICKS UP A LEAF EXAMINES IT HER STUDENTS DO THE SAME SHE SNIFFS THEY SNIFF SHE NIBBLES THEY NIBBLE HER GESTURES SEND THEM OFF TO EXPLORE A FEW CLIMB NEARBY TREES AND ONE MADINGO ALL BUT TUMBLES TO THE GROUND IN A NOISY THRASHING OF VINES BUT HE RETURNS DISPLAYING WILD EDIBLE FRUIT PLEASED HE THUMPS HIS CHEST MS N'DOKILA OFFERS A REASSURING PAT ON THE HEAD ALBERTINE IS THE MOTHER AND CENTER OF THE GROUP EXPLAINS HANS OTTO KOPFF A BIOLOGIST WHO WITH A VISITOR HAS COME TO OBSERVE TODAY'S CLASS MS N'DOKILA IS A YOUNG CONGOLESE WOMAN WITH TRAINING IN PRIMATE BEHAVIOR HER STUDENTS ARE SIX MALE GORILLAS BETWEEN THREE AND FOUR YEARS OLD ADOLESCENTS IN HUMAN TERMS THEY ARE ORPHANS RESIDENTS OF THE GORILLA ORPHANAGE PROJECT THE ONLY ONE OF ITS KIND IN THE WORLD THEIR TUTELAGE UNDER MS N'DOKILA IS SERIOUS BUSINESS FOR THESE ARE ALSO GORILLAS IN THE MIDST OF A BOLD FIRSTEVER EXPERIMENT TO RETURN THEM TO THE WILD IN YEARS PAST HUNDREDS OF YOUNG LOWLAND GORILLAS ENDED UP ON THE BLACK MARKET OF THIS DENSELY FORESTED CENTRAL AFRICAN NATION SOLD AS PETS BY POACHERS WHO FIRST KILLED THEIR MOTHERS FOR SPORT OR FOOD BUT THANKS TO RECENT GORILLAPROTECTION LAWS ADOPTED BY THE CONGOLESE GOVERNMENT AND TO THE CONCERTED EFFORTS OF THE ORPHANAGE THESE WESTERN LOWLAND GORILLAS FACE A MORE PROMISING FUTURE AT THE MOMENT THERE ARE 20 GORILLAS HERE IN A WOODED 20ACRE COMPOUND TUCKED BEHIND THE LEAFY GROUNDS OF THE BRAZZAVILLE ZOO THEY TRICKLE IN AT THE RATE OF ABOUT ONE A MONTH RESCUED BY WARDENS ARMED WITH A LAW THAT ALLOWS ONTHESPOT CONFISCATION OF ANY GORILLA OFFERED FOR SALE PERHAPS BY LATE SUMMER A NUMBER OF THEM WILL TRICKLE OUT AGAIN INTO THE CONGO'S RAIN FORESTS IN A COOPERATIVE PROJECT BETWEEN THE CONGO AND THE ORPHANAGE'S BRITISH SPONSOR THE HOWLETTS AND PORT LYMPNE FOUNDATION THE FIRST SIX WILL BE RELEASED INTO A REMOTE 300SQUAREMILE GOVERNMENTOWNED NATURE RESERVE BEING ESTABLISHED 200 MILES NORTH OF HERE HEMMED IN ON TWO SIDES BY RIVERS AND PROTECTED BY RANGERS AND FENCES THE RESERVE WILL OFFER A CHANCE FOR GORILLAS WHO HAVE ESCAPED THEIR CAPTORS TO ESCAPE A LIFE OF CAGES AS WELL AT THE BRAZZAVILLE COMPOUND THE ORPHANS BY DAY RANGE WITH THEIR SUPERVISORS OVER THE PROJECT'S FORESTED SITE BUT THEY SPEND THE NIGHT IN PENS TO KEEP THEM FROM ROAMING INTO THIS SPRAWLING CITY OF 600000 AND TO PROTECT THEM FROM INTRUDERS THIS HAS NEVER BEEN TRIED BEFORE BUT WE HAVE EVERY REASON TO BELIEVE THAT THESE GORILLAS WILL ADAPT AND CREATE THEIR OWN FAMILY UNITS JUST AS WILD GORILLAS DO SAYS MR KOPFF A GERMAN PRIMATE SPECIALIST WHO JOINED THE ORPHANAGE ABOUT A YEAR AGO HIS OPTIMISM STEMS FROM THE ORPHANS' PROWESS AS STUDENTS THE CLASSES WITH MS N'DOKILA SHOW THAT DESPITE THEIR CONTACT WITH HUMANS THE GORILLAS RETAIN A KEEN INSTINCTIVE ABILITY TO MASTER THE WAYS OF THE WILD THE MISSION OF THE ORPHANAGE BEGUN IN 1989 IS TO MAKE THE TRANSITION AS SMOOTH AS POSSIBLE BUT IT IS NOT THAT EASY YOUNG GORILLAS BROUGHT HERE AREN'T TERRIBLY DIFFERENT FROM CHILDREN RESCUED FROM TRAUMATIC SITUATIONS OR BAD HOMES MANY ARE SICK AND MALNOURISHED MANY HAVE SEEN THEIR MOTHERS SLAUGHTERED AND HAVE BEEN SO ILLTREATED BY THEIR CAPTORS THAT IT TAKES THEM MANY WEEKS TO ADJUST TO THEIR HUMAN BENEFACTORS SAYS MARK ATTWATER A BRITISH PRIMATE BIOLOGIST HE JOINED THE ORPHANAGE FOUR YEARS AGO AFTER A DECADE WORKING WITH GORILLAS RAISED IN CAPTIVITY AT BRITISH GAME PARKS AS MR ATTWATER SPEAKS SIXMONTHOLD BALUMBA CLINGS TO HIM FOR DEAR LIFE SHE CURRENTLY SPENDS NIGHTS AT THE HOME OF MR ATTWATER AND HIS WIFE HELEN A NURSE WHO ALSO SERVES AS THE ORPHANAGE'S MEDICAL DIRECTOR UNTIL THEY ARE ABOUT A YEAR OLD MANY OF THE ORPHANAGE'S BABY GORILLAS REQUIRE 24HOUR CARENIGHTTIME BOTTLE FEEDINGS WITH DILUTED BABY FORMULA AND PLENTY OF HUGS BODY CONTACT AND REASSURANCE THIS MAY SEEM LIKE PAMPERING BUT IN THE WILD MOTHER GORILLAS DON'T WEAN THEIR BABIES FOR A YEAR AND OFTEN NURTURE AND PROTECT THEM UNTIL THE AGE OF FOUR THEIR PHYSICAL NEEDS MET THE ORPHANS ARE EASED INTO SCHOOL TEAMED UP WITH GORILLAS OF LIKE AGE AND TAKEN TO THE FOREST TO LEARN THE SURVIVAL AND SOCIAL SKILLS THAT WILD GORILLAS LEARN NATURALLY MS N'DOKILA'S ROLE IS IN PART TO SUGGEST POSSIBILITIES URGING HER CHARGES UP A TREE OF SUITABLE SIZE AND SHAPE TO SUPPORT THE SLEEPING NESTS COMMON TO YOUNG WILD GORILLAS FOR EXAMPLE LIKE ANY GOOD GORILLA MOTHER SHE KEEPS AN EYE OUT FOR ANY POTENTIALLY HARMFUL MONKEY BUSINESS THESE ARE ALL GOOD BOYS AND THEY KNOW ME VERY WELL MS N'DOKILA SAYS BUT SOMETIMES THEY CAN BE JEALOUS OF EACH OTHER USUALLY A MOTHERLY GRUNT AND A GESTURE IS ENOUGH TO BREAK UP ANY SERIOUS MISCHIEF INDEED HER RELATIONSHIP WITH THESE GORILLAS IS LARGELY CHARACTERIZED BY UNBRIDLED MUTUAL AFFECTION WHEN MADINGO AND KOLA BOTH NAMED FOR CONGO VILLAGES TIRE OF A WRESTLING MATCH THEY SAUNTER OVER TO MS N'DOKILA ONE DRAPES AN ARM AROUND HER NECK AND ANOTHER PLOPS INTO HER LAP LIKE ANY TIRED THREEYEAROLD MIGHT OTHERS AMBLE OVER TO VISITORS WHERE THEY SLIP HUGE GORILLA HANDS AROUND CAMERAS AND BAGS CURIOUS FOR A LOOK MS N'DOKILA GRUNTS AGAIN REMINDING THEM OF THEIR MANNERS ONE SEEMINGLY WORRIED THAT HE HAS OFFENDED PATS A VISITOR GENTLY ON THE BACK THEY ARE NOTHING IF NOT CHARMING BUT EVERYONE AGREES THAT GORILLAS ARE MOST CHARMING IN THE WILD THUS ASSUMING THAT THE FIRST BAND OF GORILLAS ADAPTS TO THE PLANNED RESERVE OTHERS WILL FOLLOW OVER TIME THE GOAL IS TO REDUCE THE ROLE OF THE ORPHANAGE TO A TEMPORARY HOLDING FACILITY TO NURSE CONFISCATED GORILLAS BACK TO HEALTH THERE ARE NO GORILLAS IN THE RESERVE NOW IT WOULD BE TOO DANGEROUS FOR HEALTH REASONS TO PLACE ORPHANS WITH THEIR EXPOSURE AND SUSCEPTIBILITY TO HUMAN DISEASES WITH WILD GORILLAS THE RESERVE WILL ALSO BECOME A CENTER FOR PRIMATE STUDY AS WELL AS A POCKET OF TRANQUILITY FOR A SPECIES WHOSE NUMBERS ARE STEADILY SHRINKING AN ESTIMATED 40000 TO 45000 LOWLAND GORILLAS STILL ROAM CENTRAL AFRICA BY CONTRAST THE ENDANGERED MOUNTAIN GORILLA HAS DWINDLED TO PERHAPS 400 ANIMALS STILL THE LOWLAND PRIMATE IS UNDER CONSTANT PRESSURE AS FORESTS DISAPPEAR CITIES CROWD ITS HABITAT AND HUNTING INTENSIFIES ACROSS MUCH OF ITS RANGE THE ORPHANAGE GREW OUT OF AN APPEAL FIVE YEARS AGO TO BRITISH CONSERVATIONIST AND PHILANTHROPIST JOHN ASPINALL FOR HELP IN PROVIDING HOMES FOR CONGO GORILLAS RESCUED BY PRIVATE CITIZENS MR ASPINALL OWNS TWO WILDANIMAL PARKS IN KENT ENGLAND ONE OF THEM HOWLETTS BOASTS THE WORLD'S LARGEST POPULATION OF CAPTIVEBRED GORILLAS WITH 47 ANIMALS MR ASPINALL AGREED TO ACCEPT A FEW CONGO ORPHANS INTO HIS ANIMAL PARKS BUT EXPENSE AND RED TAPE IT IS TECHNICALLY ILLEGAL TO IMPORT GORILLAS EVEN ORPHANED ONES MADE IT CLEAR THAT A SITE IN THE CONGO WAS THE ONLY REALISTIC SOLUTION HIS FOUNDATION HAS SPENT ABOUT 15 MILLION THUS FAR TO BUILD AND MAINTAIN THE ORPHANAGE IT WILL SPEND ANOTHER 1 MILLION BUILDING ROADS RANGER STATIONS AND STAFF FACILITIES FOR THE GORILLA RESERVE THERE ISN'T ANY MONEY TO BE MADE IN GORILLAS INDEED EVEN HIS BRITISH PARKS ARE LOSSMAKING ENTERPRISES SUPPORTED BY HIS OTHER VENTURES NOTABLY CASINOS BUT MR ASPINALL SAYS HIS FIRST ENCOUNTER WITH A GORILLA 34 YEARS AGO LEFT HIM WITH TWO INDELIBLE IMPRESSIONS IT'S CLEAR TO ME THAT THE GORILLA IS DOOMED WITHOUT MAN'S HELP HE SAYS IT'S ALSO CLEAR THAT THEY ARE A MOST MAGNIFICENT ANIMAL 9303220005 930322 MERCEDES CONFIRMS IT IS SEEKING US SITE FOR AN AUTO FACTORY SPECIAL TO THE WALL STREET JOURNAL BONN THE GERMAN CAR MAKER MERCEDESBENZ AG CONFIRMED THAT IT IS LOOKING FOR A SITE TO BUILD AN AUTOMOBILE FACTORY IN THE US THE US HAS A VERY HIGH PRIORITY SAID DETLEF MAY A MERCEDES SPOKESMAN IN STUTTGART MERCEDESBENZ IS THE CAR AND TRUCK PRODUCING UNIT OF THE GERMAN CONGLOMERATE DAIMLERBENZ AG ALTHOUGH MR MAY SAID IT WAS TOO EARLY TO SAY WHERE THE FACTORY MIGHT BE SITUATED SOUTH CAROLINA GOV CARROLL A CAMPBELL JR TOLD THE POST AND COURIER A CHARLESTON SC NEWSPAPER THAT MERCEDES WAS CONSIDERING SOUTH CAROLINA MERCEDES WILL ANNOUNCE DETAILS WITHIN A MONTH MR MAY SAID A US FACTORY WOULD PRODUCE MERCEDES'S NEW FOURWHEELDRIVE AUTO ALTHOUGH MR MAY ALSO NOTED THAT ONCE THE PLANT IS BUILT IT COULD SHIFT PRODUCTION TO OTHER MERCEDESBENZ MODELS MERCEDES WHICH WILL SOON EXPAND ITS MODEL RANGE TO SIX CLASSES FROM ITS CURRENT THREE CLASSES NEEDS ADDITIONAL FACTORIES MERCEDES NOW OFFERS A COMPACT CLASS A MIDRANGE CLASS AND THE S CLASS CARS THE COMPANY PLANS TO ADD VAN FOURWHEELDRIVE CAR AND CITY CAR MODELS THE COMPANY HAS ANNOUNCED THAT IT WILL BUILD THE VANS IN SPAIN IF MERCEDES GOES AHEAD WITH PLANS FOR THE AUTO PLANT IN SOUTH CAROLINA IT WILL BE FOLLOWING IN THE FOOTSTEPS OF FELLOW GERMAN LUXURYCAR MAKER BAYERISCHE MOTOREN WERKE AG WHICH ANNOUNCED IN JUNE 1992 THAT IT WAS CONSTRUCTING A 250 MILLION300 MILLION PLANT IN SOUTH CAROLINA SUCH A MOVE BY MERCEDES COULD ALSO OPEN UP THE POSSIBILITY OF FURTHER COOPERATION BETWEEN THE TWO GERMAN AUTO MAKERS MERCEDES AND BMW ALREADY COOPERATE ON DEVELOPMENT AND PRODUCTION OF CERTAIN AUTO PARTS 9303220004 930322 THE OUTLOOK THE CLINTON PROGRAM A BET ON INTEREST RATES BY HENRY F MYERS NEW YORK PRESIDENT CLINTON'S ECONOMIC PROPOSALS NOW MOVING THROUGH CONGRESS ARE BASICALLY A GAMBLE ON INTEREST RATES THE BET IS TWOFOLD FIRST THAT HIS DEFICITREDUCTION PLANS WILL KEEP INTEREST RATES LOW OR DROP THEM FURTHER AND SECOND THAT THE LOW RATES WILL OVERRIDE THE ECONOMIC DRAG FROM MOST OF HIS OTHER MOVES SUCH AS THE TAX INCREASES A PROBABLE RISE IN REGULATORY COSTS AND CUTBACKS IN DEFENSE AND OTHER JOBS SO WHAT ARE THE ODDS CONCERNING THE LEVEL OF INTEREST RATES NOT BAD AT ALL ALTHOUGH FORECASTING RATES IS NOTORIOUSLY DIFFICULT FEW ECONOMISTS EXPECT A SURGE IN INFLATION TO PUSH THEM UP ANYTIME SOON ON THE OTHER HAND MICHAEL EVANS OF EVANS ECONOMICS INC THINKS RATES WON'T DROP ANY FURTHER BECAUSE IN THE BOND MARKET THE ENTIRE REDUCTION IN THE DEFICIT DUE TO THE CLINTON PROPOSAL HAS ALREADY BEEN FULLY DISCOUNTED THE CONSENSUS OF THE ECONOMISTS SURVEYED BY BLUE CHIP ECONOMIC INDICATORS EXPECTS LITTLE CHANGE IN AVERAGE THREEMONTH TREASURYBILL YIELDS A DROP FROM 35 LAST YEAR TO 33 THIS YEAR AND THEN A REBOUND TO 40 NEXT YEAR OR IN HIGHQUALITY CORPORATE BONDS GOING FROM 81 LAST YEAR TO 77 THIS YEAR AND BACK TO 80 NEXT YEAR LOOKING FURTHER AHEAD THE BUDGET DEFICITS AND THE DRAIN ON LENDABLE FUNDS FROM RELENTLESS GOVERNMENT BORROWING CLEARLY WON'T DISAPPEAR UNDER THE CLINTON PROGRAM IN THE FIFTH YEAR THE ADMINISTRATION ITSELF EXPECTS ANNUAL DEFICITS IN THE 200 BILLION RANGE AND ITS ESTIMATES ARE PROBABLY OVEROPTIMISTIC ON THE ABILITY OF LOW INTEREST RATES TO HELP THE ADMINISTRATION MUCH THE ODDS ARE NOTABLY GLOOMIER ALTHOUGH SHORTTERM RATES BEGAN FALLING SEVERAL YEARS AGO THEY DIDN'T FORESTALL THE RECESSION OR SET OFF A BOOMING RECOVERY BECAUSE LONGTERM RATES BEGAN DECLINING SIGNIFICANTLY ONLY RECENTLY THE FULL IMPACT OF THEIR DROP ISN'T CLEAR YET INTEREST RATES ARE IMPORTANT SAYS MICKEY D LEVY CHIEF ECONOMIST AT CRT GOVERNMENT SECURITIES LTD BECAUSE THEY REFLECT THE USER COST OF CAPITAL ECONOMISTS AT CJ LAWRENCE INC ESTIMATE THAT INTEREST PAID BY NONFINANCIAL NONFEDERAL BORROWERS IS DOWN TO AN ANNUALIZED 600 BILLION FROM OVER 800 BILLION TWO YEARS AGO WITH A SURGE IN MORTGAGE REFINANCING AND CAUTION ABOUT SPENDING CONSUMERS HAVE SIGNIFICANTLY REDUCED THEIR DEBTSERVICE BURDENS BUT THESE BURDENS REMAIN WELL ABOVE THOSE AT THE START OF THE LAST ECONOMIC RECOVERY IN EARLY 1983 REGIONAL FINANCIAL ASSOCIATES NOTES AND A LOT OF THE REFINANCING GAINS ARE BEING OFFSET BY THE ACCOMPANYING DROP IN INTEREST INCOME MOREOVER LOW INTEREST RATES PROBABLY CAN'T GIVE MORE THAN A MODEST LIFT TO HOME BUILDING WHICH ALREADY HAS BEEN EDGING HIGHER FOR TWO YEARS AND STILL IS UP ONLY MODERATELY DESPITE THE LOWEST MORTGAGE COSTS IN 20 YEARS THE BABYBOOMER DEMOGRAPHICS THAT SPARKED A SURGE IN HOUSING ARE A SPENT FORCE MEANWHILE THE GLUT OF OFFICE BUILDINGS STORES AND HOTELS WILL HOLD DOWN COMMERCIAL CONSTRUCTION FOR YEARS WHATEVER THE LEVEL OF INTEREST RATES THE EFFECT OF LOW INTEREST RATES ON BUSINESS INVESTMENT IS AN EVEN DICIER QUESTION CLEARLY HOWEVER HIGH RATES ARE MORE POWERFUL IN DEPRESSING JOBCREATING INVESTMENT THAN LOW RATES ARE IN BOLSTERING IT IF INTEREST RATES ARE FALLING MR LEVY SAYS THE CRUCIAL QUESTION IS WHY NOW HE NOTES PRODUCT DEMAND IS PICKING UP MONETARY POLICY IS STIMULATIVE INFLATION IS LOW AND RATES ARE FALLING BUT AS BENEFICIAL AS LOW RATES ARE HE SAYS EXPECTED GROWTH IN PRODUCT DEMAND IS A KEY FACTOR UNDERLYING BUSINESS DECISIONS TO INVEST AND HIRE AND DEMAND FOR GOODS AND SERVICES IS SWAYED BY AN ARRAY OF MACROECONOMIC POLICIES ALLAN H MELTZER AN ECONOMIST AT CARNEGIE MELLON UNIVERSITY BELIEVES THAT IT IS A MISTAKE TO THINK THAT LOW INTEREST RATES CAN IN THEMSELVES LIFT THE ECONOMY VERY FAR HE WARNS THAT AS SOON AS ECONOMIC ACTIVITY PICKS UP RATES WILL RISE TOO YET GROWTH IS ESSENTIAL TO CUTTING DEFICITS WITHOUT IT TAX REVENUES WON'T KEEP UP WITH EVERRISING FEDERAL SPENDING EVEN WORSE AN ECONOMIC SLUMP WOULD SEND THE DEFICIT SOARING AGAIN BY REDUCING FEDERAL REVENUES AND RAISING EXPENDITURES IF INTEREST RATES EVENTUALLY DROP FURTHER BECAUSE THE DEFICITREDUCTION AND OTHER MEASURES ARE DEPRESSING ECONOMIC ACTIVITY MR LEVY SAYS YOU'RE BACK IN THE SOUP CONSEQUENTLY MR LEVY ARGUES THAT THE DEFICIT SHOULD BE REDUCED IN A WAY THAT INCREASES SAVING INVESTMENT AND JOBS BUT THE CLINTON PROGRAM DOESN'T DO ANY OF THOSE THINGS AND MR LEVY BELIEVES THAT THE PRESIDENT AND HIS AIDES HAVE STACKED THE DECK AGAINST THEIR OWN LONGRUN INTERESTS ALREADY HE SAYS THE EXPECTATION OF MORE REGULATION AND MORE MANDATED PLANS IN THE FUTURE IS AFFECTING BUSINESS DECISIONS AND IF THE CLINTON ADMINISTRATION MAKES A HABIT OF ATTACKING AND RATTLING THE BUSINESS COMMUNITY FOR SHORTTERM POLITICAL GAIN THE ECONOMIC DAMAGE COULD OVERWHELM ANY BENEFITS FROM MODEST REDUCTIONS IN DEFICITS AND INTEREST RATES THE PUBLIC'S CONFIDENCE HAS ALREADY SLIPPED FROM ITS POSTELECTION HIGH AND MR CLINTON BY REPEATEDLY SHIFTING AND SHADING HIS POLICIES COULD EVENTUALLY WEAR OUT THE PUBLIC'S PATIENCE AND SERIOUSLY UNDERMINE CONFIDENCE PROF MELTZER DISCERNS ANOTHER RISK THE ADMINISTRATION EXPECTS THE FED TO KEEP INTEREST RATES LOW HE SAYS AND IS HOLDING OVER THE FEDERAL RESERVE THE THREAT OF CURBING ITS INDEPENDENCE A CHEAPMONEY POLICY MIGHT BECOME PARTICULARLY ATTRACTIVE IF AS SOME ECONOMISTS PREDICT THE ECONOMY IS WEAK AS THE NEXT PRESIDENTIAL ELECTION LOOMS THEN HE SAYS THE US MIGHT WELL REPEAT THE MISTAKES OF THE '60S AND '70S 9303220003 930322 US SURGICAL'S HIRSCH RECEIVED 607 MILLION IN 1992 COMPENSATION NORWALK CONN US SURGICAL CORP CHAIRMAN LEON C HIRSCH RECEIVED 607 MILLION IN COMPENSATION LAST YEAR INCLUDING A 585 MILLION GAIN FROM EXERCISED STOCK OPTIONS ACCORDING TO THE COMPANY'S PROXY STATEMENT US SURGICAL EXECUTIVE VICE PRESIDENT TURI JOSEFSEN WHO IS MARRIED TO MR HIRSCH MADE 267 MILLION INCLUDING 255 MILLION IN EXERCISED STOCKOPTION GAINS BRINGING THE COUPLE'S TOTAL COMPENSATION FROM THE COMPANY TO 874 MILLION TWO OTHER US SURGICAL EXECUTIVES ALSO REAPED HUGE PAY PACKAGES EXECUTIVE VICE PRESIDENT BRUCE S LUSTMAN RECEIVED 227 MILLION INCLUDING A 215 MILLION GAIN ON STOCK OPTIONS SENIOR VICE PRESIDENT DAVID T GREEN RECEIVED 211 MILLION 20 MILLION OF WHICH WAS IN STOCK OPTION GAINS AS IT WAS IN 1991 MR HIRSCH'S 1992 PAY PACKAGE IS SURE TO RANK AMONG THE BIGGEST FOR CORPORATE EXECUTIVES BESIDES THE STOCKOPTION GAINS MR HIRSCH'S TOTAL 1992 COMPENSATION INCLUDES SALARY BONUS AND LONGTERM INCENTIVE AWARDS OF 22 MILLION IN 1991 MR HIRSCH RECEIVED 18 MILLION IN SALARY BONUS AND INCENTIVE PAYMENTS AND 208 MILLION IN STOCKOPTION GAINS NOTABLY ABSENT WERE NEW STOCK OPTIONS TO US SURGICAL EXECUTIVES IN 1992 IN PREVIOUS YEARS THE COMPANY HAS BEEN GENEROUS IN AWARDING STOCK OPTIONS IN 1991 MR HIRSCH RECEIVED OPTIONS TO BUY 275 MILLION SHARES OF THE COMPANY'S STOCK OVER FIVE YEARS AS OF THE END OF THE YEAR MR HIRSCH STILL OWNED DIRECTLY OR INDIRECTLY 35 MILLION SHARES OF US SURGICAL OR ABOUT 6 OF THE COMMON STOCK SIGNIFICANTLY LESS THAN THE 105 HE OWNED IN 1991 OFFICIALS OF US SURGICAL COULDN'T BE REACHED FOR COMMENT 9303220002 930322 ECONOMY EXODUS FROM CALIFORNIA IS BRINGING PAINS AND GAINS TO OTHER WESTERN STATES BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FLOOD OF CALIFORNIANS INTO OTHER STATES FLEEING ECONOMIC AND SOCIAL TROUBLES AT HOME IS BOOSTING THOSE STATES' HOUSING MARKETS WHILE PUTTING A STRAIN ON SCHOOLS AND SERVICES OVER THE THREE YEARS OF CALIFORNIA'S RECESSION MORE THAN ONE MILLION RESIDENTS HAVE MOVED OUT OF THE GOLDEN STATE INTO OTHER STATES THE MAJORITY ABOUT 600000 HAVE RELOCATED IN THE 11 OTHER WESTERN STATES ALTHOUGH STATES AS FAR AWAY AS NORTH CAROLINA HAVE SEEN A MILD SURGE WHILE CALIFORNIA'S OVERALL POPULATION OF 313 MILLION IS STILL INCREASING AT THE RATE OF ABOUT 650000 A YEAR MOSTLY DUE TO A HIGH NUMBER OF BIRTHS AND A CONTINUED INFLUX OF IMMIGRANTS THE OUTMIGRATION WAS STRONG AND STEADY BETWEEN MID1989 AND MID1992 AND HAS ACCELERATED SHARPLY SINCE THEN ACCORDING TO CALIFORNIA'S DEPARTMENT OF FINANCE DRIVERS' LICENSE RECORDS SHOW 65000 MORE PEOPLE LEFT THE STATE THAN ARRIVED FROM OTHER STATES SINCE JULY FOR A TOTAL OUTFLOW THAT ALREADY NEARLY ECLIPSES THE 350000 RATE FOR ALL OF THE PREVIOUS FISCAL YEAR THE STATES ON THE RECEIVING END OF THE TREND HAVE SEEN SOME BENEFITS WITH THE MOST TANGIBLE BEING BOOSTS TO HOUSING AND RETAIL SALES IN RESURGING COLORADO FOR EXAMPLE DENVER'S SINGLEFAMILY HOUSING PERMITS BOLTED 47 LAST YEAR WHILE RETAIL SALES SURGED 72 AMID A POPULATION SURGE THAT IS LED BY CALIFORNIANS I HOPE THEY KEEP COMING SAYS CHRIS BLACKWOOD DIRECTOR OF ECONOMIC AND FINANCIAL RESEARCH FOR GEORGE K BAUM & CO AN INVESTMENT BANKING FIRM IN DENVER IN UTAH WHERE CALIFORNIANS ARE ALSO DRAWN TO A STRONG ECONOMY RETAIL SALES ROSE 86 AND HOUSING CONSTRUCTION SHOT UP 27 LAST YEAR THE HOUSING MARKET IS SO HOT THAT THE INVENTORY OF HOMES FOR SALE IN THE SALT LAKE CITY AREA HAS PLUMMETED 50 OVER THE PAST YEAR AND A HALF AND REALTORS CALL THIS A SELLER'S MARKET IT'S NOT UNCOMMON TO HEAR ABOUT PEOPLE FROM CALIFORNIA SEEKING TO MOVE TO UTAH ON A DAILY BASIS SAYS LYNN WARDLEY PRESIDENTBROKER OF THE WARDLEY BETTER HOMES & GARDENS REALTY IN SALT LAKE CITY ADDS LOCAL REALESTATE AGENT HAL ERICKSON MOST OF THEM TELL ME THEY ARE TIRED OF THE PROBLEMS THEY ARE HAVING IN CALIFORNIA AND THAT THIS SEEMS TO BE A BETTER PLACE TO RAISE A FAMILY THOUGH MUCH OF THE IMPETUS FOR MOVING OUT OF THE GOLDEN STATE IS THE POOR ECONOMY THERE THE DETERIORATED QUALITY OF LIFE IS ADDING TO THE OUTFLOW INTO HOUSING DEVELOPMENTS SUCH AS THE MOUNTAINSIDE DESERT MOUNTAIN PROJECT IN SCOTTSDALE ARIZ AT THAT 8000ACRE GATED ENCLAVE OF 200000 TO 1 MILLION HOMES SALES EXECUTIVES SAY NEARLY ONETHIRD OF THEIR PROSPECTS ARE WELLHEELED CALIFORNIANS I GOT TO THE POINT I WAS HAVING TROUBLE BREATHING BECAUSE OF THE SMOG SAYS MERRITT MOSELLE A RETIRED INSURANCE BROKER WHO ALONG WITH HIS WIFE MOVED TO DESERT MOUNTAIN FROM LOS ANGELES FOUR YEARS AGO I FOUND THE AIR OUT HERE IN ARIZONA SO NICE AND CLEAR THIS EXODUS FROM CALIFORNIA HAS NOT COME WITHOUT COSTS TO THE NEIGHBORING STATES ONE PROBLEM IS THAT THE RUSH INTO HOUSING HAS OVERHEATED PRICES IN SOME PLACES IN THE SEATTLE AREA FOR INSTANCE HOUSING PRICES SKYROCKETED 50 BETWEEN 1988 AND 1990 WHEN CALIFORNIANS ARRIVING WITH HUGE PROFITS FROM SALES OF THEIR HOMES BOUGHT INTO THE MARKET THE MARKET HAS SINCE COOLED UNDER THE SPECTER OF MASSIVE AEROSPACE LAYOFFS THERE WAS A LOT OF RESENTMENT BECAUSE THEY HAVE MONEY AND RAISE THE HOME PRICE WHICH MEANS EXCLUDING THE WASHINGTONIANS SAYS CHANG MOOK SOHN EXECUTIVE DIRECTOR OF WASHINGTON'S PLANNING AND REVENUE FORECAST COUNCIL IN OREGON HOUSING PRICES ROSE AS MUCH AS 25 A YEAR WHEN THE CALIFORNIANS FIRST BEGAN FLOCKING IN BIG NUMBERS DURING THE LATE 1980S ALTHOUGH THE LATEST WAVE OF CALIFORNIANS HAS LESS MONEY TO FUEL THE SAME KIND OF APPRECIATION THE ONES MOVING IN THEN WERE ASTONISHED TO FIND THEY COULD BUY A FIVEBEDROOM HOME FOR THE SAME PRICE THEY HAD SOLD THEIR THREEBEDROOM HOME IN CALIFORNIA THEY CAME INTO OREGON AND SAID MY GOSH I CAN LIVE LIKE THAT' SAYS BARBARA SUE SEAL CHIEF EXECUTIVE OFFICER OF BARBARA SUE SEAL PROPERTIES IN PORTLAND THE SECOND PROBLEM IS CALIFORNIANS HAVE BEEN MOVING INTO SOME STATES FASTER THAN THEIR ABILITY TO GET JOBS PUSHING UP UNEMPLOYMENT IN OREGON FOR INSTANCE UNEMPLOYMENT HAS SOARED TO 72 FROM 59 IN JUST ONE YEAR AS JOB GROWTH SLOWED SHARPLY BECAUSE OF PROBLEMS IN THE NATIONAL ECONOMY THE PEOPLE HAVE COME BUT WE HAVE NOT BEEN ABLE TO PUT THEM TO WORK AS FAST AS WE WOULD LIKE SAYS WILLIAM CONERLY SENIOR VICEPRESIDENT AND ECONOMIST FOR FIRST INTERSTATE BANK'S NORTHWEST REGION IN PORTLAND AND IN WASHINGTON STATE UNEMPLOYMENT HAS NEARLY DOUBLED TO 8 OVER THE PAST FOUR YEARS AS ONCEPOWERFUL JOB GROWTH HAS STAGNATED WHILE CALIFORNIANS AND OTHERS CONTINUE TO STREAM IN AND WHEN THEY HAVE KIDS OUR SCHOOL EXPENSES AND WELFARE EXPENSES ARE INCREASED SAYS MR SOHN WASHINGTON AND SEVERAL OTHER WESTERN STATES ARE BEING SQUEEZED BY SPIRALING SCHOOL ENROLLMENTS FED IN LARGE PART BY THE CALIFORNIA INMIGRATION TERESA LOWE A WASHINGTON STATE DEMOGRAPHER SAYS WASHINGTON'S PUBLIC SCHOOL ENROLLMENT IS INCREASING BY ABOUT 26000 STUDENTS OR MORE THAN 3 A YEAR AND THAT REVENUES ARE NOT KEEPING PACE A NORMAL RATE OF ENROLLMENT GROWTH IS CONSIDERED BETWEEN 15 AND 2 MANY SCHOOL DISTRICTS SHE SAYS ARE HAVING TO USE PORTABLE BUILDINGS FOR CLASSROOM SPACE IN PORTLAND'S FASTGROWING SUBURB OF BEAVERTON THE LOCAL SCHOOL DISTRICT IS GAINING AS MANY AS 1400 NEW STUDENTS A YEAR OR A 5 ANNUAL INCREASE THE BEAVERTON SCHOOL DISTRICT MEANWHILE IS IN SUCH A CRUNCH THAT IT IS HAVING TO LOP OFF ITS BUDGET BY ONEFIFTH DURING THE NEXT TWO YEARS HOPEFUL THAT NEW BOND LEVIES MAY ONE DAY FINANCE CONSTRUCTION OF FACILITIES TO EASE A GROWING SPACE PROBLEM THE DISTRICT FOR NOW IS RESORTING TO 117 PORTABLE BUILDINGS OR THE EQUIVALENT OF ABOUT SIX ELEMENTARY SCHOOLS AND THE TEACHERTOSTUDENT RATIO IS WIDENING WE HAVE TOO MANY PROBLEMS OF OUR OWN TO BE DEALING WITH PEOPLE COMING FROM CALIFORNIA SAYS ARDI ALLNOCH A SECRETARY FOR THE SCHOOL DISTRICT IN SALEM ORE THE SCHOOL DISTRICT'S ENROLLMENT IS INCREASING BY 1000 STUDENTS OR 3 A YEAR WHILE REVENUE SUFFERS FROM A NEW PROPERTY TAX LIMITATION AND THE POSSIBILITY OF CUTBACKS IN MONEY FROM THE STATE THE DISTRICT HAS PUT APPROXIMATELY 75 PORTABLE BUILDINGS ON CAMPUSES GROWTH HAS ACCELERATED IN THE PAST THREE YEARS SAYS JON YUNKER DIRECTOR OF BUSINESS SERVICES FOR THE SALEMKEIZER SCHOOL DISTRICT WHILE ADDITIONAL TAX MEASURES ARE NEEDED IN MANY LOCALITIES TO EASE THE PRESSURES OF GROWTH TRANSPLANTED CALIFORNIANS ACTUALLY HINDER THEM IN SOME INSTANCES IN NEVADA FOR INSTANCE NEW RESIDENTS FROM CALIFORNIA HAVE FORMED COALITIONS TO BLOCK SUCH MEASURES AS A BOND ISSUE FOR MORE SCHOOLS IT'S SORT OF I'VE GOT MINE I EARNED IT ALL IN CALIFORNIA AND I'M GOING TO KEEP IT' SAYS THOMAS F CARGILL PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF NEVADA RENO NOT SURPRISINGLY THIS ATTITUDE DOESN'T SIT WELL WITH LOCALS IN A RECENT ARTICLE ABOUT CALIFORNIANS AND OTHER OUTOFSTATE MIGRANTS THE RENO GAZETTEJOURNAL CALLS THEM CARPETBAGGERS 9303220001 930322 BUSINESS BRIEF STATE FARM MUTUAL AUTOMOBILE CLAIMS TOTALING 177 MILLION ARE EXPECTED FROM BLIZZARD STATE FARM MUTUAL AUTOMOBILE INSURANCE CO BLOOMINGTON ILL THE NATION'S LARGEST INSURER OF HOMES EXPECTS TO PAY 177 MILLION TO POLICYHOLDERS HURT BY THE BLIZZARD THAT TRAMPLED THE EAST COAST EARLIER THIS MONTH THE COMPANY ANTICIPATES 95000 CLAIMS FROM HOMEOWNERS IN 11 STATES FLORIDA ALONE IS EXPECTED TO ACCOUNT FOR 53000 CLAIMS WITH TOTAL BENEFIT PAYMENTS OF 125 MILLION THE STORM CAUSED 50 TORNADOES IN THE STATE THE BLIZZARD'S TOLL ON STATE FARM THOUGH SIGNIFICANT PALES IN COMPARISON WITH THE 35 BILLION IT PAID TO VICTIMS OF LAST AUGUST'S HURRICANE ANDREW BECAUSE STATE FARM IS SO LARGE ITS EXPERIENCE GIVES CLUES ABOUT HOW THE INDUSTRY AS A WHOLE FARED IN THE STORM STATE FARM INSURES ONE IN EVERY FIVE HOMES IN THE COUNTRY SUGGESTING AN INDUSTRY LOSS ON HOMEOWNER CLAIMS OF 885 MILLION SHORTLY AFTER THE STORM AM BEST CO ESTIMATED THE TOTAL INSURED LOSSES FROM THE BLIZZARD AT 800 MILLION COMPARED WITH 165 BILLION FOR HURRICANE ANDREW 9303220106 930224 HEALTH CURING HEALTH CARE SHORTAGE OF PRIMARYCARE DOCTORS SPURS SCHOOLS HMOS TO TRY TO REDRESS BALANCE BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL MARIANNE KUZUJANAKIS TREATS COLDS AND EARACHES AT A HARVARD COMMUNITY HEALTH PLAN CLINIC NEAR BOSTON RUNNY NOSES AREN'T AS EXCITING AS OPEN HEART SURGERY BUT AS CORNY AS THIS SOUNDS I THOUGHT PRIMARY CARE IS WHERE PEOPLE NEEDED ME SAYS THE PEDIATRICIAN WHO SPURNED FELLOWSHIPS IN NEONATOLOGY AND PEDIATRIC INTENSIVE CARE AMERICAN MEDICINE COULD USE A LOT MORE CORNY DOCTORS LIKE DR KUZUJANAKIS HEALTH EXPERTS SAY THAT A SHORTAGE OF PRIMARYCARE PHYSICIANS AND A GLUT OF HIGHLY PAID SPECIALISTS THREATEN TO STYMIE EVEN THE MOST AGGRESSIVE EFFORTS TO STAUNCH RISING US HEALTH COSTS AND EXPAND ACCESS TO THE 35 MILLION UNINSURED IF WE GOT THERE TOMORROW WITH A HEALTHREFORM PLAN WE WOULDN'T HAVE THE PHYSICIAN WORK FORCE TO MAKE IT WORK SAYS STEVEN A SCHROEDER PRESIDENT OF THE ROBERT WOOD JOHNSON FOUNDATION A HEALTHCARE GROUP IN PRINCETON NJ INDEED EVEN THOUGH 80 OF THE CONTACTS THAT PATIENTS HAVE WITH DOCTORS COULD BE HANDLED BY PRIMARYCARE PHYSICIANS TWOTHIRDS OF US DOCTORS ARE SPECIALISTS DOCTORS FRESH OUT OF MEDICAL SCHOOL ARE CHOOSING CAREERS IN HIGHTECHNOLOGY SPECIALTIES SUCH AS CARDIOLOGY GASTROENTEROLOGY AND ORTHOPEDICS OVER PRIMARY CARE AT A RATE OF 4 TO 1 AND MORE THAN 25 OF RESIDENCYTRAINING POSITIONS IN GENERAL MEDICINE WENT UNFILLED IN 1991 JOHN R BALL EXECUTIVE VICE PRESIDENT OF THE AMERICAN COLLEGE OF PHYSICIANS CALLS GENERALIST DOCTORS AN ENDANGERED SPECIES THE CONSEQUENCES FOR US MEDICINE ARE PROFOUND WHILE A SHORTAGE OF GENERALISTS HAS LONG PLAGUED EFFORTS TO PROVIDE ADEQUATE CARE TO INNERCITY AND RURAL AMERICA IT IS NOW A SUBJECT OF GROWING MAINSTREAM CONCERN PACIFICARE HEALTH SYSTEMS INC CYPRESS CALIF OPERATES HEALTH MAINTENANCE ORGANIZATIONS IN OREGON CALIFORNIA OKLAHOMA AND TEXAS AND THERE IS A SHORTAGE OF GOOD PRIMARYCARE DOCTORS IN EVERY LOCATION SAYS TERRY HARTSHORN PRESIDENT AND CHIEF EXECUTIVE OFFICER HARVARD COMMUNITY HEALTH PLAN CAN'T FIND ENOUGH INTERNISTS AMONG NEWLY MINTED DOCTORS AND MANY NEW RECRUITS HAVE BEEN IN PRIVATE PRACTICE FOR SIX TO EIGHT YEARS MEANTIME THE DOMINANT ROLE OF SPECIALISTS IS WIDELY VIEWED AS A CHIEF REASON WHY US HEALTH CARE IS THE WORLD'S MOST EXPENSIVE A LANDMARK STUDY LAST YEAR BY RESEARCHERS AT THE NEW ENGLAND MEDICAL CENTER'S HEALTH INSTITUTE IN BOSTON FOUND THAT SPECIALISTS ORDER MORE TESTS PERFORM MORE PROCEDURES AND HOSPITALIZE MORE PATIENTS THAN PRIMARYCARE DOCTORS TREATING SIMILAR SYMPTOMS AND IN CANADA AND GERMANY WHERE ONLY HALF THE PHYSICIANS ARE SPECIALISTS ABOUT 10 OF GROSS DOMESTIC PRODUCT GOES TO HEALTH CARE COMPARED WITH 14 IN THE US THE REASON ISN'T THAT AMERICANS HAVE MORE DISEASE THAT NEEDS THESE SERVICES DR SCHROEDER SAYS WE JUST HAVE MORE PEOPLE ON THE SUPPLY SIDE WHO PROVIDE THEM ALL OF THIS BODES ILL FOR EFFORTS TO BUILD A MORE COSTEFFECTIVE HEALTHCARE SYSTEM PROPOSALS UNDER DEVELOPMENT BY THE CLINTON ADMINISTRATION CONSIDER ORGANIZATIONS SUCH AS HARVARD COMMUNITY HEALTH PLAN AND KAISER PERMANENTE THE BIG OAKLAND CALIF HMO AS MODELS FOR REFORM SUCH PLANS WHICH STRESS PREVENTION AND PRIMARY CARE MAINTAIN PHYSICIAN STAFFS THAT ARE AT LEAST HALF FAMILY DOCTORS PEDIATRICIANS AND INTERNISTS THE KEYSTONE TO A MORE ORGANIZED HEALTHCARE SYSTEM IS A PERSONAL PHYSICIAN WHO BECOMES AN INDIVIDUAL PATIENT'S MANAGER OF CARE SAYS JOHN M EISENBERG CHAIRMAN OF MEDICINE AT GEORGETOWN UNIVERSITY MEDICAL CENTER WASHINGTON DC THAT DOCTOR WILL BE A GENERALIST WE NEED TO DOUBLE OR TRIPLE THE NUMBER OF PEOPLE ENTERING GENERAL MEDICINE AND WE NEED TO DO IT IN SHORT ORDER IN A BURST OF ACTIVITY US MEDICAL SCHOOLS ARE SCRAMBLING TO CORRECT THE SITUATION BUT THE TASK IS DAUNTING A COMPLEX MIX OF ECONOMIC PROFESSIONAL AND CULTURAL FORCES CAN DIVERT EVEN THE MOST DETERMINED GENERALMEDICINE CANDIDATES TO HIGHTECH SPECIALTY CAREERS ONE IS MONEY DOCTORS IN TRAINING ACKNOWLEDGE IN SURVEYS THAT THEY ARE LURED BY SALARIES THAT ARE ROUTINELY AT LEAST TWICE AS HIGH FOR SUCH SPECIALTIES AS CARDIOLOGY ANESTHESIOLOGY AND GENERAL SURGERY SALARIES FOR GENERALISTS GENERALLY RANGE FROM 80000 TO 125000 WITH MANY STUDENTS GRADUATING WITH DEBT AS BIG AS A HOME MORTGAGE PRIMARY CARE LOOKS EVEN LESS ATTRACTIVE EVEN IF ECONOMICS WEREN'T AN ISSUE MEDICAL SCHOOLS ARE DESIGNED TO PRODUCE SPECIALISTS FACULTIES ARE DOMINATED BY SPECIALISTS WHO SERVE AS MENTORS FOR STUDENTS CURRICULA REMAIN FOCUSED ON HIGHTECH HOSPITAL CARE EVEN AS MORE AND MORE PROCEDURES ARE PERFORMED IN OUTPATIENT SETTINGS AND FUNDING SOURCES INCLUDING FEDERAL MEDICARE EDUCATION SUBSIDIES FAVOR SUBSPECIALTY RESIDENCY PROGRAMS EVEN PRIMARYCARE TRAINING HAS A DECIDEDLY HIGHTECH EMPHASIS DR KUZUJANAKIS SAYS HER THREEYEAR PEDIATRIC RESIDENCY INCLUDED SIX MONTHS OF NEONATAL INTENSIVE CARE AND NOT ONE DAY OF WELLBABY CARE WE COULD TAKE CARE OF 500GRAM NEWBORNS AND KIDS WITH SEIZURES BUT WE DIDN'T KNOW HOW TO DEAL WITH A NORMAL FULLTERM BABY SHE SAYS WHEN SHE GOT TO A CLINIC SHE HAD TO ASK NURSES AND EVEN PATIENTS WHAT TO TELL MOTHERS WHO WERE HAVING TROUBLE BREAST FEEDING OR WONDERED WHEN THEIR BABIES WOULD WALK TO ADDRESS SUCH PROBLEMS MEDICAL SCHOOLS ARE REVAMPING CURRICULA TO ADD CLINICAL TRAINING OUTSIDE THE HOSPITAL BOLSTER FACULTY IN GENERAL MEDICINE AND EASE THE TUITION BURDEN IN AN UNUSUAL LONGSTANDING FAMILYMEDICINE PROGRAM AT THE UNIVERSITY OF NEW MEXICO SCHOOL OF MEDICINE FOR INSTANCE STUDENTS SPEND THREE MONTHS IN A COMMUNITY HEALTH CLINIC DURING THEIR FIRST YEAR OF MEDICAL SCHOOL ELSEWHERE STUDENTS GENERALLY DON'T WORK WITH PATIENTS UNTIL THEIR THIRD YEAR JUST AS THEY'RE MAKING CAREER DECISIONS AND EVEN THEN THE PATIENTS ARE USUALLY CRITICALLY ILL AT THE STATE UNIVERSITY OF NEW YORK AT BUFFALO SIX HOSPITALS ARE SPENDING 51 MILLION OF REVENUE OVER THREE YEARS TO INCREASE THE PROPORTION OF GENERALISTS ENROLLED IN RESIDENCY PROGRAMS TO 50 FROM 35 BY 1994 COMMUNITY CLINICS AND DOCTORS' OFFICES WILL SERVE AS TRAINING SITES ONE PERK TO ELEVATE THE STATUS OF PRIMARY CARE FREE HOSPITAL PARKING LAST MONTH THE UNIVERSITY OF PENNSYLVANIA SCHOOL OF MEDICINE ANNOUNCED A FUNDRAISING INITIATIVE AIMED AT EVENTUALLY PROVIDING TUITIONFREE EDUCATION TO EASE FINANCIAL PRESSURES THAT PUSH STUDENTS INTO SPECIALTY CAREERS TO BOLSTER POSTMEDICAL SCHOOL RESIDENCY TRAINING FOR GENERAL PRACTITIONERS BOTH THE AMERICAN COLLEGE OF PHYSICIANS AND THE AMERICAN ACADEMY OF FAMILY PRACTICE ARE CALLING FOR CHANGES IN MEDICARE REIMBURSEMENT THAT WOULD ESSENTIALLY REQUIRE MEDICAL SCHOOLS TO INCREASE GENERAL MEDICINE POSITIONS AND SOME HMOS ARE RESPONDING TO COMPLAINTS THAT THEY DO LITTLE TO HELP TRAIN THE DOCTORS THEY NEED KAISER AND HARVARD COMMUNITY HEALTH PLAN HAVE RESIDENCY PROGRAMS AND OTHERS MAY FOLLOW SUIT WE'RE NOT DOING ANYTHING AND WE SHOULD SAYS PACIFICARE'S MR HARTSHORN IN THE NEXT COUPLE OF YEARS WE'LL HAVE TO STEP UP AND START PAYING FOR THIS EDUCATION NONE OF THIS OFFERS A QUICK SOLUTION GIVEN FOUR YEARS OF MEDICAL SCHOOL AND THREE YEARS OF RESIDENCY TRAINING INITIATIVES LAUNCHED TODAY FOR INSTANCE WON'T START TO BEAR FRUIT UNTIL THE END OF THE DECADE AT THE EARLIEST DR SCHROEDER CITING A UNIVERSITY OF WISCONSIN STUDY SAYS THE SPECIALISTGENERALIST IMBALANCE IS SO SEVERE THAT IF HALF OF ALL US MEDICALSCHOOL GRADUATES CHOOSE GENERAL MEDICINE BEGINNING IN 1995 THE WORK FORCE WON'T BE EVENLY SPLIT UNTIL 2040 MEANTIME NURSEPRACTITIONERS AND PHYSICIAN ASSISTANTS WHO ALREADY HANDLE MANY GENERAL MEDICINE TASKS IN HMOS AND COMMUNITY HEALTH CLINICS ARE LIKELY TO PLAY AN EVEN BIGGER ROLE AND THERE'S EVEN TALK OF RETRAINING DOCTORS NOW IN SPECIALTY CAREERS TO TAKE ON PRIMARYCARE DUTIES WE NEED TO RESTORE THE GENERALIST SKILLS OF THOSE DOCTORS WHO WERE INITIALLY TRAINED AS INTERNISTS AND WENT ON TO BECOME SPECIALISTS SAYS GEORGETOWN'S DR EISENBERG WE NEED TO RECAPTURE THEIR ORIGINAL INTEREST IN BEING GENERAL DOCTORS SPECIALISTS PRACTICE A MUCH MORE EXPENSIVE BRAND OF MEDICINE THAN GENERAL PRACTITIONERS EXPERTS SAY HALF OF US DOCTORS SHOULD BE GENERALISTS SIZE OF PROBLEM TWOTHIRDS OF 600000 US PHYSICIANS ARE SPECIALISTS SEE RELATED LETTER LETTERS TO THE EDITOR WHY FAMILY DOCTORS ARE DISAPPEARING WSJ MARCH 19 1993 9302240074 9303220105 930209 NEW YORK'S PENSION FUND TARGETS A&P BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEW YORK'S 56 BILLION STATE PENSION FUND SAID IT WILL STAGE A PROXY CONTEST AGAINST GREAT ATLANTIC & PACIFIC TEA CO'S DIRECTORS ITS FIRST TARGET IN AN EFFORT TO STEP UP PRESSURE ON POORLY PERFORMING COMPANIES WHOSE STOCK IT OWNS STATE COMPTROLLER EDWARD V REGAN SAID THE NEW YORK STATE COMMON RETIREMENT FUND EXPECTS TO SEND A LETTER TO MAJOR SHAREHOLDERS OF A&P URGING THEM TO VOTE AGAINST MANAGEMENT'S SLATE OF DIRECTORS AT THE ANNUAL MEETING IN JULY THE NEW YORK PENSION FUND WON'T BE SPONSORING AN ALTERNATE SLATE OF DIRECTORS HOWEVER A&P IS 53OWNED BY A CLOSELY HELD GERMAN RETAILER TENGELMANN THE NEW YORK PENSION FUND WILL ASK A&P SHAREHOLDERS NOT ONLY TO VOTE AGAINST MANAGEMENT'S SLATE BUT ALSO TO APPROVE A PROPOSAL TO AMEND THE COMPANY'S BYLAWS TO REQUIRE THE SUPERMARKET CHAIN TO OPEN ITS PROXY MATERIALS TO LARGE SHAREHOLDERS THAT WANT TO MAKE STATEMENTS ABOUT A&P'S FINANCIAL PERFORMANCE THE PENSION FUND OWNS 260000 OF A&P'S 382 MILLION SHARES OUTSTANDING A&P BASED IN MONTVALE NJ SAID IT HAD BEEN TOLD OF MR REGAN'S PLAN IN A LETTER WE DON'T THINK IT'S A HELPFUL PROPOSAL AND WE'RE CONFIDENT THAT IF HE GOES FORWARD THE GREAT MAJORITY OF SHAREHOLDERS WILL REJECT IT AN A&P SPOKESMAN SAID THE PROXY CONTEST IS UNUSUAL FOR THE BIG NEW YORK PUBLIC PENSION SYSTEM WHICH HAS TYPICALLY STAYED IN THE SHADOWS OF THE LARGER AND MORE VOCAL CALIFORNIA PUBLIC EMPLOYEE RETIREMENT SYSTEM THE 71 BILLION CALPERS HAS BEEN IN THE HEADLINES REPEATEDLY IN RECENT MONTHS BECAUSE OF ITS CAMPAIGN FOR BETTER PERFORMANCE FROM SOME OF THE NATION'S LARGEST COMPANIES INCLUDING INTERNATIONAL BUSINESS MACHINES CORP WESTINGHOUSE ELECTRIC CORP AND SEARS ROEBUCK & CO BUT NOW NEW YORK'S COMMON RETIREMENT FUND HAS DEVELOPED A COMPUTER SYSTEM THAT MR REGAN SAID WILL SYSTEMATICALLY IDENTIFY COMPANIES WITH POOR FINANCIAL PERFORMANCE THOSE COMPANIES THEN WILL BE TARGETED FOR A VARIETY OF PRESSURE TACTICS DESIGNED TO BOOST THEIR STOCK PRICES THE NEW METHOD FOR TAGGING UNDERPERFORMING COMPANIES SUGGESTS THAT THE NEW YORK PENSION PLAN WANTS TO GRAB SOME OF THE SPOTLIGHT ON SHAREHOLDER ACTIVISM MR REGAN INSISTS THAT THE NEW SYSTEM'S MAIN PURPOSE IS TO ADD OBJECTIVITY TO SHAREHOLDER CALLS FOR BETTERRUN COMPANIES WITH INCREASED ATTENTION ON SHAREHOLDER REVOLTS HE SAID MORE ORDER IS NEEDED IN IDENTIFYING CORPORATE TARGETS YOU HAVE A HANDFUL OF ACTIVISTS WIELDING AN INORDINATE AMOUNT OF POWER MR REGAN SAID REFERRING TO CALPERS AND OTHER BIG INVESTORS HE SAID HE HOPES TO AVOID POPPING OFF ABOUT THE CORPORATION DU JOUR LIKE MANY LARGE INVESTORS NEW YORK'S PENSION PLAN IN THE PAST HAS COMPILED A LIST OF TARGET COMPANIES THAT IT IDENTIFIED AS POOR PERFORMERS THE LIST WAS PUT TOGETHER RANDOMLY HOWEVER THE COMPTROLLER SAID AND THE COMPANIES ON IT WEREN'T NECESSARILY SUBJECTED TO PRESSURE FROM THE PENSION FUND UNDER THE NEW SYSTEM COMPANIES WILL FIRST BE EVALUATED ON THEIR PERFORMANCE COMPARED WITH OTHER COMPANIES IN THE SAME INDUSTRY HE SAID IF A COMPANY FAILS A BATTERY OF TESTS THAT LOOKS AT ITS FINANCIAL PERFORMANCE AND STOCK PRICE IT WILL BE REVIEWED BY THE NEW YORK FUND IF AFTER A REVIEW BY THE PENSION FUND'S ANALYSTS THE COMPANY IS STILL CONSIDERED AN UNDERPERFORMER IT WILL BE ANALYZED BY AN OUTSIDE CONSULTANT IN THE FINAL PHASE MR REGAN SAID THE NEW YORK PENSION PLAN WILL ASK FOR A MEETING WITH MANAGEMENT IF MANAGEMENT ISN'T WILLING TO TAKE THE NECESSARY STEPS TO IMPROVE ITS FINANCIAL PERFORMANCE MR REGAN SAID THE PENSION PLAN WILL ORGANIZE A PROXY CONTEST SINCE A&P HAS A SINGLE MAJORITY SHAREHOLDER THE NEW YORK FUND CAN'T GATHER ENOUGH SHAREHOLDERS TO DEFEAT THE A&P DIRECTORS' SLATE WITHOUT THE COOPERATION OF TENGELMANN THAT SEEMS UNLIKELY A SPOKESMAN FOR MR REGAN SAID THE GERMAN COMPANY DECLINED TO MEET WITH REPRESENTATIVES OF NEW YORK STATE SAID MR REGAN THE POINT IS TO ALERT THE BOARD MEMBERS THAT A SIGNIFICANT NUMBER OF SHAREHOLDERS BELIEVE THEY ARE NOT DOING THEIR JOB AS STATE COMPTROLLER MR REGAN OVERSEES THE 56 BILLION RETIREMENT FUND FOR STATE GOVERNMENT EMPLOYEES THE NEW YORK FUND FACES SIMILAR OBSTACLES IN ITS EFFORT TO AMEND A&P'S BYLAWS TO ALLOW BIG SHAREHOLDERS TO REGISTER THEIR VIEWS IN PROXY MATERIAL A&P ISN'T REQUIRED TO AMEND ITS BYLAWS UNLESS 51 OF ITS SHAREHOLDERS APPROVE THE SHAREHOLDER PROPOSAL IF THE BYLAW AMENDMENT IS APPROVED SHAREHOLDERS WOULDN'T BE ABLE TO INCLUDE STATEMENTS IN THE PROXY MATERIALS UNTIL NEXT YEAR MR REGAN SAID THE NEW YORK FUND WOULD LIKE TO INCLUDE A 300WORD STATEMENT IN A&P'S PROXY MATERIAL CRITICAL OF MANAGEMENT IT WOULD STATE THAT A&P'S BOARD HAS FOCUSED TOO MUCH ON ACQUISITIONS AND NOT ENOUGH ON OPERATIONS AND HASN'T STAYED COMPETITIVE IN ITS STORES AND MERCHANDISING SEE RELATED LETTER LETTERS TO THE EDITOR WE'RE NOT GANGING UP ON OUR PORTFOLIO FIRMS WSJ MARCH 19 1993 9302090060 9303220102 930222 DRUG DILEMMA AMONG THOSE WARY OF ABORTION PILL IS MAKER'S PARENT FIRM GERMANY'S HOECHST IS FACING PRESSURE FROM CLINTON TO SELL RU486 IN US THREE WOMEN IN EDINBURGH BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT HOECHST AG HAS NEVER KEPT CLOSE TABS ON EVERY NEW PILL THAT APPEARS IN THE LABORATORIES OF ROUSSELUCLAF SA THE FRENCH DRUG COMPANY IT CONTROLS NOT UNTIL 1988 DID THE GERMAN CHEMICALS COLOSSUS LEARN HOW HARD ONE OF THEM WOULD BE TO SWALLOW IF WE APPLIED OUR OWN PRINCIPLES TO THAT MOLECULE WE WOULD NEVER HAVE DEVELOPED IT SAYS HOECHST LOBBYIST DIETER BRAUER IT WAS SUPPOSED TO BE FOR CANCER SAYS FELICITAS FEICK A HOECHST PRESS OFFICER THE OTHER THING WAS A SIDE EFFECT THE MOLECULE AT ISSUE IS KNOWN AS RU486 THE SIDE EFFECT IS ABORTION FOR REASONS THAT SEEM TO MIX MONEY MORALS AND NAZIERA CORPORATE MEMORIES CHEMICALLY INDUCED ABORTION IS ONE INDUSTRY NICHE THESE GERMANS WANT NO PART OF IN THE FIVE YEARS SINCE ITS FRENCH SUBSIDIARY WITH 2 BILLION IN SALES INTRODUCED THE WORLD'S FIRST ABORTION PILL HOECHST HAS BEEN A 30 BILLION COMPANY STUCK WITH A PRODUCT IT DOESN'T WANT TO SELL UNDER OFFICIAL PRESSURE IT HAS AGREED TO DISTRIBUTE RU486 IN JUST THREE COUNTRIES FRANCE BRITAIN AND SWEDEN THOUGH 75 OF THE WORLD'S POPULATION LIVES IN LANDS WHERE ABORTION IN SOME FORM IS LEGAL CHINA HAS GONE AHEAD AND COPIED THE COMPOUND WITHOUT PERMISSION BUT HOECHST HASN'T FELT OBLIGED TO PUT ITS PRODUCT ON THE SHELVES ELSEWHERE LEAST OF ALL IN THE US WHERE THE ABORTION PILL WOULD BE SURE TO MAKE THE MOST MONEY AND ALSO TAKE THE MOST HEAT UNTIL BILL CLINTON WAS ELECTED PRESIDENT HOECHST STOOD PAT FOR STRONG REASONS PRESIDENTS REAGAN AND BUSH HAD MADE THEIR DISLIKE OF THE PILL PLAIN ENOUGH THE US DIDN'T HAVE TO BAN IT HOECHST NEVER EVEN APPLIED FOR A LICENSE FROM THE FOOD AND DRUG ADMINISTRATION BUT TWO DAYS AFTER TAKING OFFICE PRESIDENT CLINTON HAULED DOWN THE RED FLAGS HE TOLD HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA TO PROMOTE THE TESTING LICENSING AND MANUFACTURING OF RU486 IN THE US NOW HOECHST IS IN A FIX AMERICA'S ABORTIONRIGHTS LOBBY SAYS THE GERMANS HAVE NO CHOICE AT ALL THEY MUST RELEASE THE PILL AND SMALL DRUG COMPANIES HAVE COME FORWARD WITH PROPOSALS TO DISTRIBUTE IT YET AMERICA'S ANTIABORTION LOBBY TUGS THE OPPOSITE WAY ONE OF ITS LEADERS CALLS RU486 AN ANTIHUMAN PESTICIDE AND SECURITIES ANALYSTS PREDICTING RUINOUS PUBLICITY COUNSEL A STRATEGY OF RISK AVOIDANCE WEIGHING OPTIONS IT'S THEIR PRODUCT SAYS AN ANALYST WHO FOLLOWS THE CHEMICALS INDUSTRY IN LONDON THEY CAN DO WITH IT AS THEY DAMN WELL CHOOSE NOBODY CAN FORCE YOU TO MAKE AND SELL A PRODUCT IF YOU DON'T WANT TO STEVE JENNING A CONGRESSIONAL STAFFER DOESN'T SEE IT THAT WAY HIS BOSS OREGON DEMOCRAT RON WYDEN HAS BEEN HOUNDING HOECHST FOR YEARS THIS COUNTRY SHOULDN'T BE ON ITS KNEES TO THESE GUYS SAYS MR JENNING THEY OUGHT TO GET OUT OF THEIR BUNKER AND BRING THE DRUG OVER HOECHST IS THINKING IT THROUGH IT CAN WITHHOLD THE PILL SELL IT LICENSE SOMEONE TO SELL IT OR SELL THE PATENT AND BE RID OF IT WHATEVER THE COMPANY DOES IT LOOKS AS IF AMERICANS WON'T SEE HOW THE ABORTION PILL WORKS ANYWHERE NEAR AS READILY AS THREE YOUNG WOMEN DO ON A BLUSTERY SCOTTISH DAY AT THE ROYAL INFIRMARY OF EDINBURGH IT'S BAD LUCK LAURA IS SAYING MY FIRST ROMANCE SINCE MY DIVORCE MY FIRST CHANCE I KIND OF FELT IT WAS THE WRONG BASIS FOR A NEW RELATIONSHIP SHE IS 29 A SALES REP FOR A FOOD COMPANY ANN WHO IS 27 AND ALREADY THE MOTHER OF A BOY AND GIRL SITS IN THE EASY CHAIR TO LAURA'S RIGHT SHE HAD BEEN USING AN INTRAUTERINE DEVICE I NEVER THOUGHT IT WAS POSSIBLE TO GET PREGNANT WITH AN IUD SHE SAYS THE WIND RATTLES THE WINDOWS IN THE CORNER LOUNGE OF THE QUIET WARD A KORAN AND A BIBLE LIE ON THE SILL ON THE TELEVISION A GAME SHOW PLAYS FAINTLY LOOKING UP CHARLOTTE SAYS I TOLD MY MUM SHE STOOD BY ME I'M TOO YOUNG TO HAVE A CHILD CHARLOTTE IS 17 THE THREE FIRST CAME HERE TWO DAYS AGO ALL LESS THAN NINE WEEKS PREGNANT A NURSE UNLOCKED THE CUPBOARD WHERE DANGEROUS DRUGS ARE KEPT AND GAVE EACH A WHITE PILL THEY WENT HOME AND WAITED FOR RU486 TO DO ITS JOB BLOCKING THE ACTION OF THE HORMONE PROGESTERONE THAT BINDS AN EMBRYO TO THE UTERINE WALL THEY FELT QUEASY HAD CRAMPS AND BEGAN TO BLEED THE FEELING WAS WORSE THAN A MENSTRUAL PERIOD THEY SAY BUT NOT MUCH WORSE THIS MORNING THEY HAVE RETURNED FOR A DOSE OF PROSTAGLANDIN A DRUG THAT MAKES THE UTERUS CONTRACT AND CAUSES SOMETHING AKIN TO A SPONTANEOUS MISCARRIAGE IT WILL HAPPEN IN ABOUT FOUR HOURS I FEEL A BIT DETACHED NOW SAYS ANN ALL THE ANGUISH WAS LAST WEEK WHEN I HADN'T REALLY DECIDED WHAT I WANTED TO DO SHE HAS HEARD NOTHING OF HOECHST OR ITS RELUCTANCE TO SEND ITS FRENCH PILL TO THE US THEY SOUND LIKE A POWERFUL LOT THIS COMPANY SHE SAYS WHY ARE THEY SO WORRIED ROUSSELUCLAF HAS BEEN ASKING ITSELF THAT QUESTION FOR A LONG TIME IN 1987 AFTER SEVEN YEARS' WORK IT APPLIED TO LICENSE RU486 IN FRANCE AT ITS ANNUAL MEETING THE NEXT JUNE ANTIABORTION PROTESTERS RAISED A FUSS AND HOECHST WOKE UP ITS RESPONSE WAS EXTREMELY HOSTILE SAYS ETIENNEEMILE BAULIEU THE SCIENTIST WHO FIRST SEIZED ON THE MOLECULE AS AN ABORTION DRUG UNDER FIRE FROM ITS OWNERS IN FRANKFURT ROUSSEL WITHDREW ITS APPLICATION WOLFGANG HILGER HOECHST'S CHAIRMAN THEN MADE HIS ONE AND ONLY PERSONAL PRONOUNCEMENT ON THE ABORTION PILL IT IS MY CONVICTION THAT HOECHST SHOULD NOT MARKET RU486 HE WROTE IN A LETTER TO THE INTERNATIONAL FEDERATION OF GYNECOLOGY AND OBSTETRICS COMMERCIALIZATION OF A DRUG FACILITATING AND EASING ABORTION IS AGAINST HOECHST'S CORPORATE CREDO BUT IT WASN'T AGAINST THE FRENCH GOVERNMENT'S CREDO AND AT THE TIME THE STATE OWNED 36 OF ROUSSEL THE HEALTH MINISTER DECLARED RU486 THE MORAL PROPERTY OF WOMEN AND ESSENTIALLY ORDERED ROUSSEL TO MARKET IT ROUSSEL COMPLIED AND HOECHST SET ABOUT MAKING SURE THE FRENCH CONTRETEMPS WASN'T REPEATED ELSEWHERE IN FRANKFURT IT HIRED A CONSULTING FIRM TO CONVENE AN ELABORATE ROUND TABLE OF 20 GERMAN GROUPS FROM FEMINISTS TO LAWYERS BY 1990 THE COMPANY HAD RECEIVED A POLICY PAPER WELLING WITH CONCERN FOR THE EXISTENTIAL QUESTION OF MAN'S BEING THAT SOON RECEIVED THE IMPRIMATUR OF THE HOECHST BOARD THE PAPER LAID OUT HOECHST'S IRONBOUND CONDITIONS FOR GIVING A COUNTRY ITS PILL A DEFINITIVE LAW ON ABORTION STRICTLY CONTROLLED DISTRIBUTION AN INVITATION FROM A REPRESENTATIVE BODY AND ABOVE EVERYTHING A PUBLIC CONSENSUS RECOGNIZABLE TO HOECHST THAT PREGNANCY TERMINATION IS TOLERATED BY SOCIETY THE CONDITIONS ARE A MIRROR OF WHAT THE COMPANY IS SAYS ROBERT GEURSEN HOECHST'S HEAD OF HEALTHCARE POLICY WE AREN'T A MONOLITHIC BLOC YET FOR SOME PARTICULARLY GERMAN REASONS THE BLOC IS OBVIOUSLY WEIGHTED AGAINST ABORTION DURING WORLD WAR II HOECHST WAS PART OF IG FARBEN LIKE HOECHST FARBEN OWNED A QUASIINDEPENDENT SUBSIDIARY IT WAS CALLED DEGESCH AND IT MADE ZYKLONB THE ANTIHUMAN PESTICIDE THAT MURDERED JEWS IN THE GAS CHAMBERS OF AUSCHWITZ THE ECHO MUST HAVE AN ESPECIALLY HARSH RING FOR HOECHST'S CHAIRMAN DR HILGER A CHEMIST WHO HAS BEEN WITH THE COMPANY FOR 35 YEARS HE IS A DEVOUT ROMAN CATHOLIC AND AS CHAIRMAN OF HOECHST HE HAS AN ABSOLUTE VETO OVER COMPANY POLICY HOECHST WANTS TO STOP THE COMPOUND EVERYWHERE IT CAN SAYS DR BAULIEU AND WHEN I SAY HOECHST I MEAN HILGER THE PILL'S DEVELOPER AND MOST PERSISTENT PROPONENT HAS REASON TO BE MIFFED HE HAS NEVER ONCE MET THE CHAIRMAN WHO ALSO DOESN'T GIVE NEWSPAPER INTERVIEWS ON THE SUBJECT NEITHER DOES ROUSSEL AT THIS SENSITIVE JUNCTURE THOUGH ONE SOURCE AT THE SUBSIDIARY SAYS I CAN ASSURE YOU THAT HOECHST'S WHOLE BOARD WANTS TO DO SOMETHING WITH RU486 EXCEPT THE CHAIRMAN HE'S A FUNNY MAN HILGER A MAN ALONE BUT DR HILGER RELENTED WHEN TWO COUNTRIES SWEDEN LAST YEAR AND BRITAIN IN 1990 MET HOECHST'S DEMANDS FRANCE'S RECORD MAY HAVE MADE A DIFFERENCE THOUGH ONE WOMAN DIED IN UNUSUAL CIRCUMSTANCES 120000 OTHERS THERE HAVE FELT NO UNTOWARD EFFECTS AND RU486 DID ITS JOB FOR 96 OF THEM THE MOST TELLING FRENCH STATISTIC IS THE RATE OF ABORTION IT HASN'T CHANGED HAVING THE PILL IN REACH IT APPEARS DOESN'T AFFECT A WOMAN'S DECISION TO END A PREGNANCY IT DOES MAKE GOING THROUGH WITH IT A FAR CRY FROM SURGERY UNDER ANESTHESIA YOU WAKE UP AND YOU'RE SORE AND YOU'RE EMPTY ANN SAYS OF HER ONE SURGICAL ABORTION NOW SHE'S SIPPING TEA FROM A PLASTIC CUP I KNOW MORE ABOUT IT TODAY I'M MORE IN CONTROL TWO HOURS HAVE PASSED AT THE ROYAL INFIRMARY THE YOUNG WOMEN HAVE TALKED OF MARRIAGE GARDENING RESTAURANTS I DON'T FEEL I'M IN HOSPITAL SAYS LAURA WHO ALSO HAS HAD AN ABORTION BEFORE IT'S QUITE CASUAL CHARLOTTE THE 17YEAROLD STANDS AND SAYS I'M GETTING SOME TWINGES SHE GOES OUT TO ASK THE NURSE FOR AN ASPIRIN I WONDER WHEN WE'LL BE GETTING LUNCH SAYS LAURA WOMEN HAVING ABORTIONS IN AUSTRIA HOLLAND AND CANADA DON'T USUALLY LOOK FORWARD TO LUNCH HOECHST HAS DEFLECTED ALL SHOTS AT BRINGING RU486 INTO THOSE PLACES THE SAME GOES FOR GERMANY ITSELF WHERE A LAW MELDING THE WEST'S TIGHT ABORTION RESTRICTIONS AND THE OLD EAST'S LOOSE ONES IS LOCKED UP IN THE CONSTITUTIONAL COURT UNTIL THE RULES ARE RECONCILED HOECHST SAYS WE DO NOT WISH TO INTERVENE THE THIRD WORLD DOES WITHOUT THE PILL FOR ANOTHER REASON ELEVEN YEARS AGO ROUSSEL GAVE RIGHTS FOR TESTING AND POSSIBLY DISTRIBUTION IN POOR COUNTRIES TO THE WORLD HEALTH ORGANIZATION BUT APART FROM PASSING SAMPLES TO CHINA WHO DID NOTHING IF IT HAD ACTED TO DISTRIBUTE THE PILL THE US PROBABLY WOULD HAVE HELD BACK A BIG INSTALLMENT OF WHO'S BUDGET PRESIDENT CLINTON WON'T DO THAT UNDER THE REPUBLICANS THE US CLEARLY FLUNKED HOECHST'S RU486 TEST NOW THE NEW PRESIDENT IS RESTORING FUNDS FOR FETALTISSUE RESEARCH FOR COUNSELING AND POPULATION PROGRAMS THAT TOUCH ON ABORTION THE ABORTION PILL WILL SOON BE OFF THE LIST OF DRUGS PEOPLE CAN'T IMPORT FOR THEIR OWN USE AND HOECHST CAN EXPECT SOME JAWBONING FROM HHS SECRETARY SHALALA SHORT OF AN ENGRAVED INVITATION THE ADMINISTRATION HAS RUN OUT OF ENTICEMENTS THE GOVERNMENT HAS GONE ABOUT AS FAR AS IT CAN SAYS MR JENNING OF REP WYDEN'S OFFICE DOING ANYTHING MORE BEGINS TO GET UNSEEMLY BUT HOECHST STILL ISN'T SURE THE BIRTHPREVENTION BUSINESS IN THE US DOESN'T HAVE A LOT OF ALLURE IN 1970 13 BIG COMPANIES DID CONTRACEPTIVE RESEARCH TODAY FOUR DO JUST ONE OF THEM AMERICAN PRODUCTLIABILITY SUITS COST MORE TO FIGHT THAN THE PROFITS JUSTIFY ADD THE PROSPECT OF BOYCOTTS AND BOMBINGS AND THE ABORTIONPILL FIELD IS LEVELED GD SEARLE & CO MAKES THE PROSTAGLANDIN PILL TAKEN WITH RU486 TO COMPLETE THE ABORTION PROCESS SEARLE SELLS IT AS AN ULCER MEDICINE ONLY AFTER THE FACT DID IT AGREE TO THE DRUG'S BRITISH AND FRENCH USE IN ABORTIONS JUST ONE OTHER COMPANY SCHERING AG IN BERLIN IS AT WORK ON A DRUG SIMILAR TO RU486 BUT FOR TREATMENT OF BREAST CANCER ONE BRITISH SCIENTIST SUSPECTS SCHERING WILL SOMEDAY APPLY IT TO ABORTION AFTER HOECHST CATCHES ALL THE FLAK OVER MARKETING IN THE US THAT WOULD BE A PRETTY PASS FOR HOECHST THIS IS THE WRONG TIME FOR IT TO TURN PIONEER WITH PHARMACEUTICAL SALES OF 54 BILLION IT HAS SLIPPED IN RECENT YEARS TO SEVENTH IN THE WORLD FROM SECOND ITS US NUMBERS ARE WORSE SALES 635 MILLION MARKET SHARE 1 THEY AREN'T INTRODUCING ENOUGH NEW PRODUCTS FAST ENOUGH AN ANALYST SAYS HOECHST HAS PUT ITS MONEY ON MENTANE AN ALZHEIMER'S DISEASE DRUG WHOSE EARNINGS COULD ECLIPSE THOSE OF ANY ANTIPREGNANCY PILL THE LAST THING THEY WANT SAYS MARTIN GLEN WHO TRACKS HOECHST AT SHEARSON LEHMAN BROTHERS IS A PRODUCT THAT RAISES THEIR PROFILE IN A BAD WAY NOT EVEN A LETTER FROM THE WHITE HOUSE SEEMS LIKELY TO TIP THE SCALES FOR HOECHST JUST AFTER THE ELECTION MR CLINTON DID SEND A LETTER TO DR BAULIEU IN IT HE SAID HE WANTED RU486 TREATED LIKE ANY OTHER DRUG THAT REQUIRES TESTING BY THE FDA HOECHST'S HEALTHPOLICY CHIEF MR GEURSEN CALLS THAT SPONGY WITH THE US SUPREME COURT OF SEVERAL MINDS AND ANTIABORTION ACTIVISTS MOBILIZING HOECHST SAYS AMERICA'S ABORTION DEBATE STILL BEARS THE TRAITS OF AN IRRECONCILABLE CONFLICT AS ITS POLICY SAYS NO CONSENSUS NO PILL DANIEL STONE A LOS ANGELES DOCTOR WHO ADVOCATES RU486 FIGURES THE COMPANY LIKES IT THAT WAY HOECHST ESTABLISHED ITS CRITERIA HE SAYS BECAUSE THEY CAN'T BE FULFILLED HE AND OTHERS MOBILIZING THEIR OWN CAMPAIGNS ONE GROUP IS THREATENING TO BRING IN THE PILL'S CHINESE VERSION THINK THAT IT IS TIME FOR HOECHST TO SELL ITS PRODUCT OR GIVE IT UP THE HOLDING GAME HAS TO END SAYS HALFDAN MAHLER HEAD OF THE INTERNATIONAL PLANNED PARENTHOOD FEDERATION IF THEY ARE SO EMBARRASSED ABOUT OWNING THIS PATENT WHY DON'T THEY GET RID OF IT HOECHST DOESN'T DISMISS THAT IDEA WE HAVE PLANS IN THE DRAWER OF COURSE MR GEURSEN SAYS AT LEAST 20 US COMPANIES ARE RAISING THEIR HANDS TO BID BUT THEY ARE ALL TOO SMALL TO IMPRESS MR GEURSEN IF HOECHST GIVES RU486 TO ANYONE HE INSISTS THE METHOD OF DISTRIBUTION MUST CONFORM TO HOECHST'S OWN RULES THE COMPANY'S GREAT FEAR IS THAT IN THE US RU486 WOULD TURN ABORTION INTO A FORM OF BIRTH CONTROL FRANCE AND BRITAIN DON'T ALLOW IT BUT IN THE US THE DRUG COULD BE ISSUED IN A DOCTOR'S OFFICE AND TAKEN AT HOME IT COULD BECOME EVEN MORE EASILY OBTAINABLE IF IT WERE CLEARED FOR USE AS A MORNINGAFTER PILL IT COULD LEAD TO SAFETY PROBLEMS AND BLACK MARKETS MR GEURSEN SAYS HE DOESN'T POINT OUT AS OTHERS DO THAT ABORTION WOULD ALSO PASS BEYOND THE FOCUS OF PROTESTS AT HOSPITALS AND CLINICS AND OUT OF THE PUBLIC EYE YOU CAN'T STOP A WOMAN FROM VISITING A DOCTOR SAYS HERMANT SHAH A SECURITIES ANALYST IN NEW JERSEY WHO FOLLOWS HOECHST CLOSELY IT BECOMES A PRIVATE TRANSACTION AND THAT'S THE END OF THE ABORTION BATTLE HOECHST DOESN'T WANT THAT TO HAPPEN IF IT DOES RELEASE THE PATENT OR AT LEAST THE MARKETING RIGHTS IT WILL NARROWLY RESTRICT THE PLACES WHERE ABORTIONS ARE PERFORMED MR GEURSEN SAYS THE POPULATION COUNCIL A RESEARCH ORGANIZATION HAS SPOKEN WITH ROUSSEL ABOUT DISTRIBUTING RU486 IN THE US THE COUNCIL DOESN'T HAVE THE RESERVATIONS WE DO SAYS MR GEURSEN YET HOECHST HAS NO QUALMS AT ALL ABOUT DISCUSSING THE ABORTION PILL'S AMERICAN FUTURE AT LENGTH THE PRAGMATIC WAY IS FOR PEOPLE FROM DIFFERENT SIDES TO COME TOGETHER AND TALK ABOUT IT HE SAYS IT'S STILL A LONG PROCESS IT'S NOT SHORTTERM NO WAY BUT IN EDINBURGH IT ONLY TAKES FOUR HOURS A NURSE HAS ASKED THE THREE WOMEN INTO A SMALL ADJOINING ROOM THEY'VE STAYED AWAY 15 MINUTES ON BEDS BEHIND GREEN CURTAINS CHARLOTTE IS THE FIRST BACK IN THE LOUNGE MY STOMACH FEELS BETTER SHE SAYS I'LL GO TO MY MUM'S NOW AND WATCH TV OR SOMETHING LAURA COMES IN NEXT AND SAYS SO WE'RE UNPREGNANT NOW I DON'T FEEL EMOTIONAL LIKE I DID LAST TIME I FEEL I'VE HAD A LITTLE PROBLEM THAT'S BEEN SEEN TO I FEEL LIGHTER ANN RETURNS AFTER THEY LEAVE SHE MAKES HERSELF A CUP OF TEA AND SITS QUIETLY CONTEMPLATIVE FOR A FEW MINUTES THEN SHE PUTS ON HER COAT AND GOES HOME TO CARE FOR HER CHILDREN SEE RELATED LETTER LETTERS TO THE EDITOR SEARLE AGAINST USE OF ITS DRUG IN ABORTION WSJ MARCH 19 1993 9302220003 9303220096 930212 CRAFT WARNING UNSAFE OIL TANKERS AND ILLTRAINED CREWS THREATEN FURTHER SPILLS NATIONS WITH LAX REGULATION REGISTER UNWORTHY SHIPS AND STRAITS AREN'T POLICED US LIABILITY LAW MAY HELP BY WALL STREET JOURNAL STAFF REPORTERS KEN WELLS IN LONDON DANIEL MACHALABA IN NEW YORK AND CALEB SOLOMON IN HOUSTON LONDON BRITISH PETROLEUM CO INSPECTORS SPENT HOURS CRAWLING OVER A 550FOOT MALTESEREGISTERED TANKER IN AMSTERDAM LAST YEAR THEY CAME AWAY APPALLED BP FOUND 73 DEFICIENCIES SOME OF THEM MINDBOGGLING MANY OF THE NAVIGATION CHARTS ABOARD THE GREEKOWNED VESSEL WHICH HAD BEEN OFFERED TO THE OIL COMPANY FOR CHARTER HADN'T BEEN UPDATED FOR 20 YEARS TWO OF ITS ENGINEERS WERE UNLICENSED ITS ANTICOLLISION RADAR WAS OUT OF WHACK THE CREW WAS GREEK AND FILIPINO BUT THE SHIP'S SAFETY AND MECHANICAL MANUALS WERE WRITTEN IN SERBOCROATIAN EVEN WORSE THE TANKER BRIMMING WITH 22000 TONS OF GASOLINE HAD A HOPELESSLY INADEQUATE FIRECONTROL PLAN WHILE MOST OF ITS CREW WENT ABOUT BLITHELY IGNORING NOSMOKING REGULATIONS BP INSPECTORS NOTED NOT SURPRISINGLY THE OIL COMPANY WHICH FLUNKED NEARLY A THIRD OF THE 1000 VESSELS IT INSPECTED LAST YEAR REJECTED THIS ONE TOO YET THE SHIP CONTINUES TO PLY INTERNATIONAL WATERS FOR OTHERS BP'S CONCERN IS ONE SHARED BY MAJOR OIL COMPANIES AND GOVERNMENTS AROUND THE WORLD AGING POORLY RUN SHIPS ILLTRAINED CREWS AND POOR NAVIGATION ARE GIVING THE WORLD'S TANKER INDUSTRY A BAD NAME WHILE WORLDWIDE TANKER LOSSES DIPPED SLIGHTLY IN 1992 FROM 1991 LEVELS 1993 IS OFF TO A TERRIBLE START TANKERRELATED OIL SPILLS IN THE SHETLAND ISLANDS INDONESIA AND ESTONIA ALONG WITH ONE IN SPAIN IN DECEMBER HAVE PROMPTED INQUIRIES AND CALLS FOR STIFFER REGULATION THREE OF THE ACCIDENTS WERE BELIEVED CAUSED BY NAVIGATION ERRORS BRITAIN'S TRANSPORT SECRETARY JOHN MACGREGOR AFTER A RECENT CURSORY LOOK AT THE STATE OF THE GLOBAL TANKER FLEET DECLARED SUBSTANDARD SHIPPING IS AN INTERNATIONAL DISGRACE STATISTICS ARE ON HIS SIDE TWENTY PERCENT OF THE WORLD'S TANKERS ARE CONSIDERED UNSAFE YET THEY CONTINUE TO OPERATE IN VAST AND BUSY GLOBAL SEA LANES THAT REMAIN LARGELY UNPOLICED CUTTHROAT MARKET CONDITIONS SHODDY OPERATORS AND SCANT INTERNATIONAL REGULATION ADD TO THE STRAIN ON A SYSTEM THAT MOVES TWO BILLION TONS OF OIL AND PETROLEUM PRODUCTS ANNUALLY WITH THE EXCEPTION OF THE US WHERE PUNISHING LIABILITY LAWS IMPOSED AFTER THE 1989 EXXON VALDEZ DISASTER SEEM TO HAVE SHOCKED SHIPPERS INTO TOUGHER SAFETY STANDARDS THE WORLD'S TANKER LANES ARE GROWING MORE PERILOUS MANY OF THE SEAFARING STATES WITH THE WORST SAFETY RECORDS OVER THE PAST FIVE YEARS PANAMA SOUTH KOREA MALTA CYPRUS AND THE ISLAND NATION OF ST VINCENT AMONG THEM ARE THE VERY FLAG STATES WHOSE TOTAL FLEETS TANKERS INCLUDED ARE EXPANDING THE PROLIFERATION OF THESE FLAGS OF CONVENIENCE SHIPS REGISTERED IN THIRD WORLD COUNTRIES BY OWNERS SEEKING TO AVOID THE HIGHER TAXES AND MORE STRINGENT REGULATIONS OF MOST WESTERN MARITIME POWERS IMPLIES A CONTINUED DETERIORATION OF WORLDWIDE SHIPACCIDENT RATES SAYS THE INSTITUTE OF LONDON UNDERWRITERS A MARINEINSURANCE CONSORTIUM FURTHERMORE THE QUALITY OF INTERNATIONAL SEAMANSHIP HAS SLIPPED MARKEDLY IN THE PAST DECADE IN PART BECAUSE THERE IS NO GLOBAL OVERSIGHT OF THE ACCREDITATION OF THE WORLD'S SEAFARERS CONSIDERING THE VERY SOPHISTICATED NAVIGATIONAL AIDS NOW AVAILABLE THE NUMBER OF TANKER COLLISIONS POINTS TO POOR CREW STANDARDS AND LACK OF TRAINING AN INSTITUTE REPORT SAYS THE NOMINAL TRAFFIC COP OF THE SEAS THE UNITED NATIONS' INTERNATIONAL MARITIME ORGANIZATION HAS SPENT DECADES PROMULGATING TANKER STANDARDS AND SAFETY REGULATIONS NOW ENDORSED BY 99 OF THE WORLD'S SEAFARING NATIONS YET THE IMO CONCEDES IT HAS NO REAL POWER TO PUNISH MEMBER STATES THAT CHRONICALLY FLOUT THE LAW THE FLAGS SAYS IMO SPOKESMAN ROGER KOHN ARE OUR BOSSES THE US DESPITE PERCEPTIONS LEFT OVER FROM THE DISASTROUS EXXON VALDEZ SPILL IS VIEWED AS THE BRIGHT SPOT IN AN OTHERWISE GLOOMY GLOBAL PICTURE AND IT COULD PROVE TO BE THE MODEL FOR OTHER ACCIDENTWEARY NATIONS CONTEMPLATING AN ASSAULT ON TANKER ACCIDENTS IN 1990 DISSATISFIED WITH THE IMO'S PROGRESS IN RAISING THE LIABILITY LIMITS FOR TANKERS INVOLVED IN OIL SPILLS THE US PUSHED AHEAD WITH THE OIL POLLUTION ACT THE ACT RAISES THE LIABILITY FOR OWNERS OF AN AVERAGESIZE SUPERTANKER OPERATING IN US WATERS TO AROUND 100 MILLION FROM ABOUT 14 MILLION UNDER IMO REGULATION IN ADDITION IT AUTHORIZES UNLIMITED LIABILITY IF THE SPILL RESULTS FROM A VIOLATION OF FEDERAL LAW OPERATION OF A SHIP WHILE INTOXICATED FOR EXAMPLE IT'S NOT COINCIDENTAL SOME EXPERTS THINK THAT THE US HASN'T HAD A MAJOR SPILL IN THE PAST TWO YEARS IN 1991 ITS TOTAL SPILLAGE WAS 55000 GALLONS THE LOWEST IN 14 YEARS LUCK PLAYS A PART IN THIS TANKER WRECKS LIKE CAR OR PLANE CRASHES WILL NEVER BE COMPLETELY AVOIDABLE BUT THE OIL POLLUTION ACT HAS UNQUESTIONABLY IMPROVED THE QUALITY OF TANKERS COMING TO THE US SAYS ARTHUR MCKENZIE OF THE TANKER ADVISORY CENTER A TANKER RATING SERVICE IN NEW YORK DAVID MELVILLE MANAGER OF MRC MARINE AN OXFORD ENGLAND CONSULTING CONCERN AGREES WHILE THE LAW'S PASSAGE RAISED AN OUTCRY IN THE WORLD SHIPPING INDUSTRY WHERE IT REMAINS THOROUGHLY UNPOPULAR IT'S CAUSED TANKER OWNERS TO TAKE NAVIGATION MORE SERIOUSLY IN THE US THAN IN THE REST OF THE WORLD HE SAYS ITS LIABILITY SECTION IN FACT IS BUT ONE OF A NUMBER OF THE ACT'S REFORMS SCHEDULED TO BE IMPLEMENTED IN US WATERS OVER THE NEXT SEVERAL YEARS ONE OF THE MOSTPUBLICIZED REQUIREMENTS THAT TANKERS OPERATING IN US WATERS BE EQUIPPED WITH DOUBLEHULLS WON'T TAKE FULL EFFECT UNTIL 2015 OTHER PROVISIONS ESTABLISHING TANKERFREE ZONES IN ENVIRONMENTALLY SENSITIVE AREAS AND REQUIRING TUG ESCORTS IN CERTAIN BUSY TANKER LANES ARE EXPECTED TO COME SOONER ENVIRONMENTALISTS COMPLAIN THAT THE US COAST GUARD CHARGED WITH IMPLEMENTING THESE REGULATIONS IS DRAGGING ITS FEET THUS EXPOSING SOME OF THE NATION'S FRAGILE MARINE ECOSYSTEMS TO UNNECESSARY DANGER THE COAST GUARD SAYS THE MATTER IS COMPLICATED AND IT IS MOVING WITH DUE SPEED BUT MANY OF THE OIL POLLUTION ACT'S NOTIONS ARE GETTING A FRESH LOOK FROM OTHER IMOMEMBER NATIONS CONCERNED ABOUT THE RECENT RASH OF ACCIDENTS THE 12NATION EUROPEAN COMMUNITY IS CONSIDERING STRICT NEW SAFETY RULES INCLUDING A REQUIREMENT FOR DOUBLEHULL TANKERS IN LINE WITH THE US TIMETABLE AND PROVISIONS THAT COULD PUT CERTAIN AREAS IMPORTANT TO FISHING WILDLIFE AND TOURISM OFF LIMITS TO TANKERS THE EC IS ALSO CONSIDERING ESTABLISHING ITS OWN TANKER REGISTRY TO KEEP TABS ON THE QUALITY OF SHIPS USING EC WATERS WHILE WEIGHING AN OUTRIGHT BAN ON SHIPS OLDER THAN 15 YEARS THE BAN SHOULD IT BE ADOPTED WOULD KEEP ABOUT 40 OF THE EC'S OWN SHIPS FROM COMMON MARKET PORTS THE IMO SAYS IT ISN'T NECESSARILY OPPOSED TO TOUGHER RULES BUT HAS DISCOURAGED NATIONS FROM ACTING UNILATERALLY AS THE US DID WITH 35 OF THE WORLD'S TANKER TRAFFIC EVENTUALLY CALLING AT US PORTS AMERICAN OFFICIALS CAN'T AFFORD TO BE COMPLACENT ABOUT THE DANGERS OF UNSAFE SHIPS GLOBAL STATISTICS ARE SOBERING AT LEAST 20 OF THE WORLD'S TANKERS ARE WHAT ONE LONDON MARITIME CONSULTANT CALLS FLOATING GARBAGE SHIPS SIMPLY NOT FIT TO BE PLYING THE TRADE WHILE BP FLUNKED 30 OF THE SHIPS IT INSPECTED LAST YEAR OTHER MAJOR OIL COMPANIES FRET THAT THE NUMBER COULD BE EVEN HIGHER SOCIETE NATIONALE ELF AQUITAINE THE FRENCH OIL CONCERN SAYS TWOTHIRDS OF THE TANKERS IT PUT THROUGH ITS OWN RIGOROUS RISKANALYSIS IN 1992 FLUNKED THE TEST OWNERS ARE RELUCTANT TO SCRAP UNWORTHY SHIPS THE INSTITUTE OF LONDON UNDERWRITERS SAYS IT REFUSED TO INSURE 85 OF 133 SHIPS IT INSPECTED IN 1992 AFTER FINDING SERIOUS STRUCTURAL PROBLEMS YET FEW OF THOSE VESSELS UNDERWENT REPAIRS AND ONLY THREE WERE SENT BY OWNERS TO THE SCRAP YARD OIL COMPANIES SAY THEY OFTEN SEE TANKERS AT SEA THAT THEY THEMSELVES HAVE DECLINED TO HIRE FOR SAFETY REASONS THE GLUT OF AGING AND SUBSTANDARD TANKERS IS CONTINUING TO DEPRESS CHARTER RATES THIS IN TURN DEPRIVES THE INDUSTRY OF THE NECESSARY RETURN ON CAPITAL TO REBUILD THE AGING FLEET THE UNDERWRITERS' INSTITUTE ESTIMATES THAT 54 OF THE WORLD'S 3200 TANKERS WERE MORE THAN 15 YEARS OLD IN 1991 THOSE SAME TANKERS ACCOUNTED FOR 76 OF ALL TANKER LOSSES THAT YEAR MEANWHILE THE CURRENT SPOT CHARTER RATE FOR A 280000DEADWEIGHTTON TANKER IS ABOUT 20000 A DAY YET INDUSTRY ANALYSTS ESTIMATE THAT RATES OF 50000 TO 60000 A DAY ARE NEEDED TO JUSTIFY SPENDING THE 100 MILLION IT COSTS TO BUILD A NEW TANKER OF THAT SIZE THE PRIME MOVERS IN THIS RATE CUTTING ARE THE OIL COMPANIES COMPLAINS PAUL SLATER CHAIRMAN OF FIRST INTERNATIONAL FINANCIAL CORP A NAPLES FLA SHIP FINANCE COMPANY IT'S THE OLD ADAGE IF YOU DON'T PAY ENOUGH YOU WILL GET LOUSY SERVICE MOST OF THE WORLD'S BUSIEST TANKER PASSAGES ARE UNGUARDED BY TUG ESCORTS THAT COULD RESCUE A TANKER IN TROUBLE THE CAUSES SQUABBLING AMONG COUNTRIES INDUSTRY RESISTANCE AND THE VAGARIES OF INTERNATIONAL MARITIME LAW AS EXPERIENCE IN THE CROWDED STRAIT OF MALACCA BETWEEN INDONESIA AND MALAYSIA RECENTLY SHOWED THIS OFTEN LEADS TO DISASTER THE COLLISION BETWEEN THE FULLYLADEN OIL TANKER MAERSK NAVIGATOR REGISTERED IN SINGAPORE AND AN EMPTY JAPANESE TANKER LAST MONTH WAS BUT ONE OF NUMEROUS RECENT ACCIDENTS LAST SEPTEMBER THE FIERY COLLISION OF A LIBERIANREGISTERED SUPERTANKER AND A PANAMANIANFLAG CARGO SHIP KILLED 44 OF THE 46 CREW MEMBERS CRITICS SAY SOME OTHER SPOTS THE ENGLISH CHANNEL THE STRAIT OF GIBRALTAR AND THE BOSPORUS STRAIT IN TURKEY ARE DISASTERS WAITING TO HAPPEN FLAGS OF CONVENIENCE WITH NOTABLE EXCEPTIONS OFTEN ARE FLAGS OF DANGER SEVEN OF THEM PANAMA SOUTH KOREA HONDURAS MALTA TURKEY CYPRUS AND INDONESIA ACCOUNT FOR 60 OF THE 111 TOTAL SHIPS LOST LAST YEAR ACCORDING TO STATISTICS COMPILED BY THE INSTITUTE OF LONDON UNDERWRITERS THEIR LOSSES EXPRESSED IN PERCENTAGES OF TOTAL TONNAGE AFLOAT WERE ALMOST THREE TIMES HIGHER THAN THE WORLDWIDE AVERAGE MORE THAN A DECADE OF COSTCUTTING SPAWNED BY DEPRESSED OIL PRICES HAS LEFT SHIPS UNDERMANNED AND THE POOL OF QUALIFIED INTERNATIONAL SEAFARERS DEPLETED MOREOVER THE NUMBER OF SAILORS COMING FROM FLAG STATES WITH WILDLY UNEVEN STANDARDS OF MARITIME TRAINING IS GROWING AS THE PAY DIFFERENTIAL BETWEEN SEAMEN FROM TRADITIONAL MARITIME POWERS AND THE THIRD WORLD WIDENS BY ONE ESTIMATE WAGE RATES FOR A FILIPINO CREW ABOARD A STANDARD 40000TON TANKER ARE ABOUT ONETHIRD THAT OF A BRITISH CREW WHILE THE BEST OF THE PHILIPPINES' 60ODD MARITIME SCHOOLS PRODUCE FIRSTRATE SEAMEN THE COUNTRY AMONG OTHERS IS KNOWN TO HAVE A NUMBER OF DIPLOMA MILLS WHERE STANDARDS ARE LESS THAN RIGOROUS THE IMO ENCOURAGES MEMBER STATES TO MODEL THEIR SCHOOLS UPON ITS OWN WORLD MARITIME UNIVERSITY BUT IT HAS NO AUTHORITY TO IMPOSE THOSE STANDARDS OR TO VERIFY GRADUATES' CREDENTIALS IF SOME GOVERNMENTS HAVE BEEN KEEN TO RESPOND TO THESE CONCERNS TANKER OPERATORS AND CHARTERERS AROUND THE GLOBE HAVE ALSO TAKEN THEM TO HEART AS BP'S TOUGH INSPECTIONSYSTEM SHOWS MAJOR OIL COMPANIES DON'T ALWAYS TRUST THE TRADITIONAL POLICING OF THE TANKER INDUSTRY BY FLAG COUNTRIES OR CLASSIFICATION SOCIETIES WHICH INSPECT SHIPS FOR A FEE ROYAL DUTCH/SHELL GROUP LAST YEAR CONDUCTED MORE THAN 3500 TANKER INSPECTIONS ON ITS OWN FLUNKING ABOUT 20 OF THE CLASS CHEVRON CORP CARRIED OUT 600 INSPECTIONS AND SPARES NO EXPENSE IN INVESTIGATING SHIPS FOR LONGTERM CHARTER SAYS DAVID POWELL THE COMPANY'S FLEET MANAGER WE VISIT THE VESSEL WHETHER IT BE IN SINGAPORE EUROPE OR ANY PLACE ELSE HE SAYS FOR SINGLEVOYAGE CHARTERS CHEVRON USES ITS OWN COMPUTER DATABANK OF 10000 VESSELS AS WELL AS WORD OF MOUTH TO DETERMINE WHETHER AN INSPECTION IS NECESSARY ABOUT A THIRD OF THE TIME IT IS IN TODAY'S CLIMATE YOU'RE RISKING YOUR CORPORATION WHEN YOU PUT YOUR CARGOES ON BOARD THE VESSELS OF OTHERS SAYS MR POWELL OMI PETROLINK CORP A HOUSTON COMPANY THAT OPERATES TANKERS IN THE GULF OF MEXICO RECENTLY PHASED OUT ALL SHIPS EXCEPT THOSE OF 1989 VINTAGE OR NEWER SAYS WYNN WYMAN THE COMPANY'S CHIEF EXECUTIVE OFFICER OUR CUSTOMERS ARE GETTING TO THE POINT THAT THEY AREN'T VERY INTERESTED IN EARLY1980S SHIPS CHEVRON AMONG OTHERS DOESN'T STOP AT THE HULL MORE AND MORE COMPANIES ARE ASKING QUESTIONS ABOUT THE QUALITY OF THE CREW AND OFFICERS CHEVRON FEARS HAVING CREW MEMBERS OF TOO MANY NATIONALITIES ABOARD ONE SHIP BECAUSE COMMUNICATION PROBLEMS CAN ARISE IN A CRISIS TANKER SAFETY CONCERNS ARE ALSO PROMPTING OVERHAUL OF CLASSIFICATION SOCIETIES WHICH HAVE BEEN THE PRIMARY INSPECTORS OF SHIP CONSTRUCTION AND MAINTENANCE FOR MORE THAN 100 YEARS THE LONDON UNDERWRITERS' INSTITUTE'S 1992 INSPECTIONS OF 133 SHIPS FOR EXAMPLE WERE PART OF AN INSURANCEINDUSTRY TREND TO DISPATCH ITS OWN INSPECTORS TO HIGHRISK SHIPS RATHER THAN RELY SOLELY ON THE SOCIETIES' INVESTIGATIONS AS A RESULT MAJOR SOCIETIES ARE PHASING IN NEW INSPECTION PROCEDURES THIS YEAR THAT WILL INCREASE THE EXTENT OF TANKER SURVEYS AND WHILE THERE IS LITTLE TALK AT THE MOMENT OF IMPOSING THE US OIL POLLUTION ACT'S UNLIMITED LIABILITY PROVISIONS ABROAD PLAYERS IN THE GLOBAL MARINEINSURANCE TRADE DISPLAY EVERY SIGN OF CLAMPING DOWN ON SUBSTANDARD SHIPPING THEMSELVES WITH A LONG SHAKEOUT IN THE MARINEINSURANCE INDUSTRY HAVING SHRUNK THE POOL OF CASUALTY AND LIABILITY UNDERWRITERS WE ARE IN A POSITION TO BE INCREDIBLY RUTHLESS WITH SHIP OWNERS WITH A POOR SAFETY HISTORY SAYS ROGER NIXON AN OFFICIAL OF THE LONDON UNDERWRITERS' INSTITUTE HE CITES LONDON HULL RATES THAT ARE ALREADY 25 HIGHER AND CARGO RATES 10 TIMES HIGHER FOR IDENTICAL NEW POLICIES WRITTEN ON SIMILAR SHIPS THE DIFFERENTIAL WILL CONTINUE TO GROW BETWEEN WHAT THE GOOD OWNERS PAY AND WHAT THE BAD OWNERS PAY SAYS MR NIXON SEE RELATED LETTERS LETTERS TO THE EDITOR PROTECT OUR COASTS AGAINST OIL TANKERS WSJ MARCH 19 1993 9302120046 9303190191 930319 WHO'S NEWS DIAL CORP DIAL CORP PHOENIX ROBERT H BOHANNON WAS APPOINTED PRESIDENT AND CHIEF EXECUTIVE OF TRAVELERS EXPRESS CO A WHOLLY OWNED SUBSIDIARY BASED IN MINNEAPOLIS MR BOHANNON 48 YEARS OLD PREVIOUSLY WAS SENIOR EXECUTIVE VICE PRESIDENT CONSUMER FINANCE WITH MARINE MIDLAND BANK NA HE SUCCEEDS JAMES K BILL 47 WHO RESIGNED DIAL HAS INTERESTS IN CONSUMER PRODUCTS AND SERVICES AND TRANSPORTATION MANUFACTURING 9303190190 930319 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO JULIA F JOHNSON 42 YEARS OLD THE BANK'S COMMUNITY REINVESTMENT ACT OFFICER AND A VICE PRESIDENT WAS PROMOTED TO SENIOR VICE PRESIDENT 9303190189 930319 WHO'S NEWS US CELLULAR CORP US CELLULAR CORP CHICAGO ALLAN Z LOREN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPUTERIZED RESERVATION SYSTEM COVIA WAS NAMED A DIRECTOR OF THIS MANAGER OF CELLULAR SYSTEMS EXPANDING THE BOARD TO SEVEN MEMBERS 9303190188 930319 WHO'S NEWS CYPRUS MINERALS CO CYPRUS MINERALS CO ENGLEWOOD COLO JAMES A STURGESS MANAGER OF ENVIRONMENTAL AFFAIRS OF CYPRUS COPPER CO AN OPERATING UNIT OF THIS MINING COMPANY WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT OF ENVIRONMENTAL AFFAIRS MR STURGESS IS 41 YEARS OLD 9303190187 930319 WHO'S NEWS AMR CORP AMR CORP FORT WORTH TEXAS DONALD P O'HARE 55 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF FIELD SERVICES AT AMERICAN AIRLINES THIS COMPANY'S LARGEST UNIT PREVIOUSLY HE HAD BEEN VICE PRESIDENT OF FIELD SERVICES FOR THE CARRIER'S FLORIDA/CARIBBEAN/LATIN AMERICAN DIVISION HE SUCCEEDS RICHARD D PEARSON WHO RETIRED LAST YEAR 9303190186 930319 WHO'S NEWS BP AMERICA INC BP AMERICA INC CLEVELAND RODNEY F CHASE CHAIRMAN AND CHIEF EXECUTIVE OF THIS AMERICAN UNIT OF LONDON'S BRITISH PETROLEUM CO WILL STEP DOWN FROM HIS POST AS CHIEF EXECUTIVE IN THE SECOND HALF OF THIS YEAR TO FOCUS ON HIS POST OF MANAGING DIRECTOR OF THE PARENT COMPANY ON JAN 1 MR CHASE 49 YEARS OLD WILL BE SUCCEEDED BY CHARLES H BOWMAN 57 WHO WILL ALSO BECOME BP AMERICA'S CHIEF FINANCIAL OFFICER MR BOWMAN CURRENTLY SERVES AS CHIEF EXECUTIVE OF BP AUSTRALIA LTD ANOTHER UNIT RONALD A MCGIMPSEY 48 CURRENTLY BP AMERICA'S CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT WILL SUCCEED MR BOWMAN 9303190185 930319 WHO'S NEWS PARKER DRILLING CO PARKER DRILLING CO TULSA OKLA R RUDOLF REINFRANK WAS NAMED A DIRECTOR OF THIS OIL AND GAS CONTRACT DRILLING COMPANY INCREASING THE BOARD TO SEVEN MEMBERS MR REINFRANK 37 YEARS OLD IS EXECUTIVE VICE PRESIDENT OF SHAMROCK HOLDINGS INC THE HOLDING COMPANY FOR THE ROY E DISNEY FAMILY HE WILL STAND FOR ELECTION TO A THREEYEAR BOARD TERM AT PARKER'S ANNUAL MEETING IN DECEMBER 9303190184 930319 US STEEL IMPORTS ROSE 125 DURING JANUARY OVER DECEMBER LEVEL WASHINGTON US STEEL IMPORTS ROSE 125 IN JANUARY FROM DECEMBER BUT FELL 26 FROM A YEAR EARLIER JANUARY IMPORTS TOTALED 1535000 TONS UP FROM 1364000 TONS IN DECEMBER BUT DOWN FROM 1576000 TONS A YEAR AGO ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT'S STATISTICS JANUARY IMPORTS REPRESENTED 188 OF CONSUMPTION COMPARED WITH DECEMBER'S LEVEL OF 18 AND JANUARY 1992'S LEVEL OF 197 THE AISI SAID US STEEL EXPORTS IN JANUARY WERE 354320 TONS COMPARED WITH 348370 TONS IN DECEMBER AND 426966 TONS IN JANUARY 1992 THE AMERICAN INSTITUTE FOR INTERNATIONAL STEEL REPORTED 9303190183 930319 WHO'S NEWS AMAX INC AMAX INC NEW YORK JAMES D WOODS 61YEAROLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BAKER HUGHES INC AND THEODORE M SOLSO 46YEAROLD EXECUTIVE VICE PRESIDENTOPERATIONS OF CUMMINS ENGINE CO WERE NAMED TO THE BOARD OF THIS METALS AND ENERGY CONCERN THEY FILL A VACANCY AND SUCCEED EMIL MOSBACKER JR 70 WHO RETIRED BECAUSE OF A GRANDFATHER CLAUSE REQUIRING MEMBERS TO RETIRE AT AGE 70 9303190182 930319 WHO'S NEWS TRANS FINANCIAL BANCORP TRANS FINANCIAL BANCORP BOWLING GREEN KY VINCENT BERTA 34 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER SENIOR VICE PRESIDENT AND TREASURER SUCCEEDING DAVID A BLACKBURN WHO RESIGNED IN NOVEMBER TO PURSUE OTHER INTERESTS MR BERTA HAS BEEN VICE PRESIDENT AND MANAGER OF FUNCTIONAL CONTROL AT PNC BANK CORP PITTSBURGH 9303190181 930319 CORPORATE FOCUS CONTINENTAL AIRLINES GETS READY TO FLY WITHOUT A NET CARRIER WILL STILL FACE OBSTACLES AS IT ONCE AGAIN EMERGES FROM BANKRUPTCY BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CONTINENTAL AIRLINES IS ABOUT TO PERFORM FOR THE SECOND TIME A FEAT OF CORPORATE GYMNASTICS THAT FEW CARRIERS DO EVEN ONCE IT'S SET TO EMERGE FROM BANKRUPTCYCOURT PROTECTION BUT THAT WILL MEAN CONTINENTAL MUST START FLYING WITHOUT A NET IT WILL STRUGGLE WITH A DEBT LOAD THAT'S STILL HIGH A SMALLER CASH CUSHION THAN ITS COMPETITORS EMPLOYEES WHO HAVE WEATHERED TWO ROUNDS OF PAY CUTS AND WHO WANT TO UNIONIZE AND FIRSTQUARTER RESULTS THAT ARE BELOW EXPECTATIONS WHAT'S MORE THE CARRIER WILL BE OPERATING IN A COMPETITIVE LANDSCAPE THAT'S BECOME MORE CUTTHROAT SINCE DECEMBER 1990 WHEN THE CONTINENTAL AIRLINES HOLDINGS INC UNIT SOUGHT CHAPTER 11 PROTECTION ALONG WITH 53 OTHER SUBSIDIARIES IN A COURT SESSION THIS WEEK US BANKRUPTCY JUDGE HELEN S BALICK TOOK TESTIMONY ON THE COMPANY'S REORGANIZATION PLAN AS THE FIRST CARRIER TO MAKE IT THROUGH THE 1990SERA AIRLINE BANKRUPTCIES CONTINENTAL IS AN OBJECT LESSON ON WHAT BANKRUPTCY CAN AND CAN'T ACCOMPLISH BRANIFF AIRLINES FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION A SECOND TIME IN 1989 BUT NEVER MADE IT OUT CONTINENTAL'S PLAN CALLS FOR PAYING MOST CREDITORS A FRACTION OF WHAT THEY'RE OWED COLLAPSING THE COMPANY'S 54 UNITS INTO FOUR AND AUTHORIZING A 450 MILLION TRANSACTION GIVING 55 OF THE AIRLINE'S EQUITY TO AIR CANADA AND AIR PARTNERS A FORT WORTH INVESTOR GROUP THE JUDGE IS EXPECTED TO APPROVE THE PLAN BUT THE PLAN CAN'T IMMUNIZE CONTINENTAL TO DISTURBING TRENDS SUCH AS LEISURE PASSENGERS WHO DON'T BUY TICKETS WITHOUT STEEP DISCOUNTS AND BUSINESS TRAVELERS WHO AREN'T TRAVELING MUCH THEY'RE STILL AN AIRLINE GRUMBLES KIDDER PEABODY ANALYST SAM BUTTRICK ADDING THAT THE INDUSTRY'S 1993 OUTLOOK IS GOOD ONLY IN COMPARISON TO LAST YEAR'S PRICECUTTING MEGALOSSES BUT THE FIFTHLARGEST CARRIER IN THE US SEEMS CERTAIN TO GAIN AN EDGE AGAINST SOME OF ITS STRONGER COMPETITORS THE THREE LARGEST CARRIERS AMR CORP UAL CORP AND DELTA AIR LINES JUST HAD THEIR DEBT RATINGS LOWERED BY STANDARD & POOR'S CORP TO SPECULATIVE STATUS RAISING THEIR CAPITAL COSTS TO RATES THE SECONDTIER CARRIERS HAVE STRUGGLED WITH FOR YEARS WHAT'S MORE LABOR RATES AT THE BIGGEST CARRIERS ARE FAR HIGHER THAN AT CONTINENTAL AMERICA WEST AIRLINES AND OTHER AIRLINES WHOSE FINANCIAL CONDITIONS HAVE FORCED THEM TO CUT PAY FURLOUGH WORKERS OR INCREASE HOURS TO GET LABOR COSTS IN LINE AT AMERICAN AIRLINES FOR INSTANCE LABOR COSTS HAVE JUMPED 109 SINCE 1988 WHILE ITS UNIT REVENUE HAS GROWN BY 59 CONSEQUENTLY ANALYSTS AT THE AMR UNIT CALCULATE THAT THE REVENUE REQUIRED FOR CONTINENTAL TO EARN A 15 RETURN ON INVESTMENT IS BELOW AMR'S UNIT COST SUCH LOWER LABOR COSTS AND OPERATING COSTS WILL MAKE CONTINENTAL BETTER ABLE TO TAKE ADVANTAGE OF AN UPTICK IN TRAVEL AND SOME BELIEVE IT MAY BE COMING SOON WITHOUT QUESTION THE COMPANIES I'VE BEEN DISCUSSING BUSINESS WITH ARE SAYING THEIR BUSINESS IS IMPROVING SAYS DAVID TREITEL AN AIRLINE CONSULTANT WITH SIMAT HELLIESEN & EICHNER INC IN NEW YORK CHAPTER 11 HAS GIVEN CONTINENTAL TIME TO IMPROVE ITS BALANCE SHEET BUT BY MOST DEFINITIONS IT WILL STILL BE HEAVILY LEVERAGED WHEN IT WENT INTO BANKRUPTCY THE COMPANY HAD 396 BILLION IN DEBT AND WITH THE ELIMINATION AND RENEGOTIATION OF SOME ISSUES CONTINENTAL WILL EMERGE WITH ROUGHLY 18 BILLION IN DEBT AND ABOUT 635 MILLION IN CASH BUT WITH EQUITY OF ROUGHLY 600 MILLION THE COMPANY STILL WILL HAVE A FAIRLY HEFTY DEBTTOEQUITY RATIO OF THREETOONE AIR PARTNERS AND AIR CANADA STILL ARE TRYING TO RAISE 340 MILLION IN NEW DEBT BACKED BY CONTINENTAL ASSETS IN BANKRUPTCYCOURT PAPERS GENERAL ELECTRIC CAPITAL CORP WAS IDENTIFIED AS A POTENTIAL PURCHASER OF 160 MILLION IN AIR PARTNERS DEBT BUT NO DEAL HAS BEEN CLOSED RECENTLY AIR CANADA DISCLOSED THAT AN UNNAMED THIRD PARTY HAD BOUGHT 150 MILLION OF DEBT IT WAS GOING TO TAKE ON BUT AN AIRLINE SPOKESMAN WOULDN'T COMMENT ON REPORTS THAT GENERAL ELECTRIC CAPITAL WAS THE BUYER AS WELL CONTINENTAL IS FIGHTING COMPETITIVE THREATS FROM PLAYERS AS POWERFUL AS UNITED AIRLINES WHICH IS BEEFING UP FLIGHTS TO CONTINENTAL HUBS PARTICULARLY DENVER AND AS TINY AS STARTUP ULTRAIR A NEW HOUSTONBASED CARRIER THAT'S TRYING TO SKIM OFF BUSINESS TRAVELERS BY EMPHASIZING LUXURY SERVICE CONTINENTAL ALSO IS FIGHTING WHAT APPEARS TO BE A LOSING BATTLE TO KEEP ITS MAINTENANCE BASE OPEN AT DENVER'S STAPLETON AIRPORT EVEN AFTER FLIGHTS MOVE TO THE NEW DENVER INTERNATIONAL AIRPORT COME FALL CONTINENTAL SAYS IT CAN'T AFFORD TO BUILD A BASE AT THE NEW AIRPORT AT THE SAME TIME BOTH AIR CANADA AND CONTINENTAL EXPECT A TRAFFIC BOOST FROM THEIR PARTNERSHIP AND THEY'RE ALREADY TAKING STEPS TO CAPITALIZE ON IT IN MAY AIR CANADA WILL START TWICE DAILY FLIGHTS TO HOUSTON A CONTINENTAL HUB FROM TORONTO AND WILL BOOST ITS DAILY FLIGHTS FROM CONTINENTAL'S NEWARK HUB TO CANADA AIR CANADA IS ALSO MOVING ITS OPERATIONS IN WITH CONTINENTAL'S AT BOTH NEWARK AND LA GUARDIA AIRPORTS TO BETTER COORDINATE THEIR FLIGHT SCHEDULES FOR ALL THE TALK ABOUT SYNERGY BETWEEN THE HOUSTONBASED AIRLINE AND AIR CANADA WHICH WILL OWN 275 OF THE COMPANY'S EQUITY THIS TRANSACTION MARRIES TWO FINANCIALLY WEAK PLAYERS AIR CANADA HAD A 1992 NET LOSS OF 454 MILLION CANADIAN DOLLARS US363 MILLION AND LAST MONTH ASKED ALL EMPLOYEES TO ACCCEPT A 5 SALARY REDUCTION FOR ITS PART CONTINENTAL HAD A NET LOSS OF 1253 MILLION LAST YEAR AS FOR WHO WILL CONTROL CONTINENTAL WHEN IT EMERGES FROM CHAPTER 11 BOTH AIR PARTNERS AND AIR CANADA SAY THEY'RE SATISFIED WITH CURRENT MANAGEMENT LED BY ROBERT R FERGUSON III CHIEF EXECUTIVE SINCE AUGUST 1991 THAT'S LONGER THAN THE TENURE OF MOST CONTINENTAL CHIEF EXECUTIVES INCLUDING HIS PREDECESSOR HOLLIS HARRIS WHO'S NOW AIR CANADA'S CHAIRMAN AFTER BEING FORCED OUT AT CONTINENTAL THERE'S SOME QUESTION AS TO HOW MESSRS FERGUSON AND HARRIS WILL GET ALONG EARLIER THIS YEAR AIR PARTNERS AIR CANADA AND THE UNSECURED CREDITORS AGREED TO PAY MR FERGUSON THREE TIMES HIS 600000 ANNUAL SALARY IF HE IS FIRED AFTER THE NEW INVESTORS TAKE OVER BUT NOT IF HE RESIGNS MEANWHILE JUDGE BALICK CONTINUES THE HEARING ON CONTINENTAL'S PLAN IN HER WILMINGTON DEL COURTROOM HOLDERS OF MANY DEBT ISSUES WIPED OUT BY THE PLAN ARE OBJECTING TO IT BUT AREN'T EXPECTED TO PREVAIL THE AIRLINE CLEARED A POTENTIAL HURDLE LATE WEDNESDAY WHEN PRESIDENT CLINTON SIGNED LEGISLATION GIVING THE FEDERAL AGENCY THAT INSURES PENSIONS THE AIRLINE'S BIGGEST CREDITOR SPECIAL PROTECTION IF CONTINENTAL FILES FOR CHAPTER 11 PROTECTION A THIRD TIME UNSECURED CREDITORS ORIGINALLY WERE SLATED TO RECEIVE 48 CENTS TO 361 CENTS ON THE DOLLAR BUT SOME MODIFICATIONS ARE EMERGING DURING THE HEARING THAT COULD CHANGE THAT FORMULA SLIGHTLY CREDITORS ALSO WILL BE REPAID WITH EQUITY IN THE NEW CONTINENTAL WHICH WILL BEGIN TRADING SOME TIME DURING THE SPRING AFTER CONTINENTAL EMERGES FROM CHAPTER 11 BUT DON'T EXPECT AN IMMEDIATE DIFFERENCE IN THE COMPANY IN BANKRUPTCY CONTINENTAL WAS NEVER AS BAD AS MANY PEOPLE SUGGESTED THEY WERE SAYS MR BUTTRICK OF KIDDER PEABODY SIMILARLY UPON REEMERGENCE THEY WON'T BE SUDDENLY TRANSMOGRIFIED INTO A WORLDLEADING CARRIER 9303190180 930319 CONCESSIONS BY DELTA PILOTS ATLANTA PILOTS AT DELTA AIR LINES HAVE OFFERED THE CARRIER A PACKAGE OF CONCESSIONS INCLUDING A 5 PAY CUT IN AN EFFORT TO HELP THE UNPROFITABLE CARRIER STEM ITS LOSSES IN A TAPERECORDED MESSAGE TO ITS MEMBERS DELTA'S AIR LINE PILOTS ASSOCIATION UNION SAID IT HAD OFFERED TO ROLL BACK WAGES TO 1990 LEVELS TO SAVE 60 MILLION A YEAR THE PAY CUT OFFERED BY THE PILOTS DELTA'S ONLY UNIONIZED GROUP PUTS THEM IN LINE WITH DELTA'S OTHER EMPLOYEES A UNION OFFICIAL SAID ALPA ALSO IS OFFERING A CHANGE IN MEDICAL AND DENTAL BENEFITS THAT WOULD SAVE 5 MILLION ANNUALLY THE PILOTS IN TURN ASKED FOR MORE JOB SECURITY AND CONCESSIONS THAT THEY SAY WON'T HAVE ANY FINANCIAL IMPACT ON DELTA 9303190179 930319 ECONOMY TRADE GAP GROWS TO 730 BILLION AS EXPORTS DROP NAME BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A DROP IN EXPORTS CAUSED THE US TRADE GAP TO GROW IN JANUARY THE COMMERCE DEPARTMENT SAID INDICATING THAT FALTERING ECONOMIES OVERSEAS WILL PROBABLY CONTINUE TO PUT A DRAG ON US TRADE PERFORMANCE THE MERCHANDISE TRADE GAP WIDENED TO 730 BILLION FROM A REVISED 689 BILLION IN DECEMBER DECEMBER'S DEFICIT WAS ORIGINALLY REPORTED AS 695 BILLION BOTH EXPORTS AND IMPORTS DROPPED IN JANUARY EVIDENCE OF A SLOW RECOVERY IN THE US AND ECONOMIC PROBLEMS ABROAD THE BUSINESS SLOWDOWN AT MANY US TRADING PARTNERS SUCH AS GERMANY AND JAPAN WAS EVIDENT AS EXPORTS OF CAPITAL GOODS DROPPED BY 166 BILLION AND AUTOMOBILES BY 9082 MILLION SALES OF TELECOMMUNICATIONS EQUIPMENT AND COMPUTERS TWO HOT EXPORT ITEMS ALSO DECLINED AS A WHOLE EXPORTS FELL 266 BILLION FROM DECEMBER TO 3967 BILLION OUR MAJOR TRADING PARTNERS ARE COMPLETELY IN THE TANK SAID BRIAN HORRIGAN ECONOMIST FOR LOOMIS SAYLES & CO IN BOSTON EXPORTS WILL CONTINUE TO GROW BUT WE'RE NOT GOING TO GET ANY REAL STRENGTH AND THE TRADE PICTURE WILL CONTINUE TO DETERIORATE MR HORRIGAN SAID HE EXPECTS US EXPORTS TO REMAIN WEAK THROUGHOUT THE SPRING IMPORTS ALSO FELL IN JANUARY BY 225 BILLION TO 4431 BILLION BUT ANALYSTS SAID THEY DIDN'T EXPECT SUCH A TREND TO CONTINUE MOST OF THE DECLINES IN IMPORTS WERE RELATED TO THE CONSUMER SECTOR THERE WERE DECREASES OF 900 MILLION IN AUTOMOTIVE IMPORTS AND 600 MILLION IN IMPORTS OF OTHER CONSUMER GOODS AS USUAL AMERICA'S BIGGEST TRADE DEFICIT WAS WITH JAPAN IN JANUARY THOUGH IT DID NARROW TO 390 BILLION FROM 509 BILLION A MONTH EARLIER THE US ALSO HAD BIG TRADE DEFICITS WITH CHINA CANADA TAIWAN SOUTH KOREA AND BRAZIL EXCEPT FOR THE DATA ON INDIVIDUAL COUNTRIES THE FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9303190178 930319 UK'S UNITED BISCUITS SAYS PRETAX PROFIT FELL BY 18 IN FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL LONDON UNITED BISCUITS HOLDINGS PLC SAID PRETAX PROFIT FELL 18 TO 1623 MILLION 2357 MILLION IN THE YEAR THAT ENDED JAN 2 LARGELY AS A RESULT OF A POOR PERFORMANCE BY KEEBLER CO ITS US COOKIE AND CRACKER MAKER SALES TOTALED 312 BILLION UP 47 THE RESULTS WERE IN LINE WITH MARKET FORECASTS EXCEPT FOR KEEBLER MOST OF ITS BUSINESSES OOSTED PROFITS AND ALL SAW INCREASED SALES ON A LIKEFORLIKE BASIS DESPITE THE TOUGHEST OPERATING CONDITIONS FOR MANY YEARS UNITED BISCUITS CHAIRMAN ROBERT CLARKE SAID IN A STATEMENT UNITED BISCUITS SAID OPERATING PROFIT AT KEEBLER DROPPED 60 TO 262 MILLION FROM 656 MILLION A YEAR EARLIER DESPITE A 7 RISE IN SALES TO 105 BILLION FROM 983 MILLION THE GROUP DESCRIBED MARKET CONDITIONS IN THE US AS EXTREMELY UNFAVORABLE IT NOTED THOUGH THAT IT HAS CARRIED OUT A THOROUGH REVIEW OF KEEBLER AND THAT BY REFOCUSING THE BUSINESS AND SIGNIFICANTLY CUTTING COSTS IT IS CONFIDENT OF IMPROVEMENTS IN THE PROFITABILITY AND LONGTERM SECURITY OF ITS US OPERATIONS UNITED BISCUITS SAID ITS 1992 FIGURES REFLECT NEW ACCOUNTING RULES REGARDING THE TREATMENT OF GAINS AND LOSSES ON THE DISPOSAL OF BUSINESSES AND THAT ITS 1991 ACCOUNTS HAVE BEEN RESTATED TO GIVE A LIKEFORLIKE COMPARISON LOOKING AHEAD MR CLARKE SAID THAT OPERATING PROFIT HAS STARTED WELL IN THE CURRENT FINANCIAL YEAR AND IS CONSIDERABLY AHEAD OF THE SAME PERIOD A YEAR EARLIER HE SAID HE EXPECTS RESTRUCTURING AT KEEBLER TO LEAD TO A SIGNIFICANT IMPROVEMENT IN PROFITS FROM THE US AND THAT ITS UK AND CONTINENTAL EUROPEAN BUSINESSES ARE PERFORMING WELL WE HAVE MADE IMPORTANT STRATEGIC PROGRESS OVER LAST YEAR MR CLARKE SAID WE ARE CONFIDENT THAT THE STRONG POSITIONS THAT WE ARE BUILDING IN OUR CORE GROUPS WILL GENERATE GOOD RETURNS FOR SHAREHOLDERS UNITED BISCUITS SAID OPERATING PROFIT FELL TO 2035 MILLION IN 1992 FROM 2434 MILLION A YEAR EARLIER INCLUDED IN THE OPERATING PROFIT FIGURE ARE CHARGES OF 56 MILLION COVERING FACTORY CLOSURES THE COSTS OR REORGANIZING KEEBLER AND FOREIGNCURRENCY HEDGING GAINS 9303190177 930319 UK'S COATS VIYELLA POSTS 13 INCREASE IN '92 PRETAX PROFIT SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH TEXTILES CONCERN COATS VIYELLA PLC ANNOUNCED THAT ITS PRETAX PROFIT ROSE 13 IN 1992 ITS PRETAX PROFIT OF 1091 MILLION 1584 MILLION WAS GENERALLY IN LINE WITH MARKET FORECASTS COATS VIYELLA CHAIRMAN DAVID ALLIANCE SAID HE EXPECTS THE COMPANY TO MAKE FURTHER PROGRESS IN THE CURRENT FINANCIAL YEAR HELPED BY THE DECLINE IN THE BRITISH POUND AGAINST OTHER MAJOR CURRENCIES AND RECENT REDUCTIONS IN INTEREST RATES MR ALLIANCE DESCRIBED THE RESULTS AS ENCOURAGING ESPECIALLY IN LIGHT OF THE DIFFICULT TRADING CONDITIONS THE COMPANY FACED DURING THE YEAR A DECISION TO BOOST ITS FULLYEAR DIVIDEND TO 725 PENCE FROM 7 PENCE REFLECTED 1992'S IMPROVED PERFORMANCE AND A BRIGHTER OUTLOOK FOR 1993 HE SAID HE ADDED THOUGH THAT THE RATE OF PROGRESS IN THE CURRENT YEAR DEPENDS LARGELY ON THE SPEED OF RECOVERY OF THE UK ECONOMY THE RATE OF GROWTH IN THE US THE EXTENT TO WHICH IT TURNS AROUND ITS BRAZILIAN OPERATIONS AND ON THE WORSENING ECONOMIES OF CONTINENTAL EUROPE 9303190176 930319 WHO'S NEWS PHILIPS ELECTRONICS NV PHILIPS ELECTRONICS NV EINDHOVEN THE NETHERLANDS SCOTT MARDEN WAS NAMED PRESIDENT OF THE NEWLY ESTABLISHED PHILIPS SOFTWARE UNIT OF THIS CONSUMER ELECTRONICS CONCERN MR MARDEN 38 YEARS OLD WILL OVERSEE THE COMPANY'S SOFTWARE INTERESTS EXCLUDING THEIR INVOLVEMENT IN THE OPERATIONS OF POLYGRAM NV A MUSIC RECORDING COMPANY CONTROLLED BY PHILIPS ELECTRONICS MR MARDEN PREVIOUSLY WORKED AT BEAR STEARNS & CO AS A SENIOR MANAGING DIRECTOR RESPONSIBLE FOR THE FIRM'S MEDIA AND ENTERTAINMENT INVESTMENT BANKING ACTIVITIES 9303190175 930319 INTERNATIONAL RABIN SEEKING SIGNAL BY SYRIA ON PEACE FRONT BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ISRAEL IS LOOKING FOR A SIGNAL THAT SYRIA WILL PURSUE PEACE INDEPENDENTLY OF THE CONTINUING NEGOTIATIONS BETWEEN ISRAEL AND PALESTINIANS ISRAELI PRIME MINISTER YITZHAK RABIN SAID DURING AN INTERVIEW YESTERDAY THAT DURING THE NEXT FEW MONTHS HIS NEGOTIATORS WILL BE PROBING SYRIA'S ATTITUDE TOWARD TWO ISSUES THE NATURE OF THE PEACE THAT DAMASCUS IS READY TO OFFER IN EXCHANGE FOR ISRAELI WITHDRAWAL FROM THE GOLAN HEIGHTS AND THE EXTENT TO WHICH AN ISRAELSYRIA PEACE TREATY WOULD STAND ON ITS OWN TWO FEET RATHER THAN BE CONDITIONED ON PEACE WITH OTHER ARABS MR RABIN ADDED THAT HE HOPED TO RECEIVE THESE ANSWERS DURING THE NEXT FOUR TO SIX MONTHS DURING PREVIOUS ROUNDS OF THE PEACE TALKS THE TWO NATIONS HAVE BEEN PLAYING A CATANDMOUSE GAME MR RABIN SAYS HE WON'T DISCUSS WHETHER HE'S PREPARED TO WITHDRAW FULLY FROM THE GOLAN WHICH ISRAEL CAPTURED IN 1967 UNTIL SYRIA SAYS WHETHER IT IS READY FOR FULL DIPLOMATIC RELATIONS WITH THE JEWISH STATE SYRIA INSISTS THAT ISRAEL MUST SHOW ITS HAND FIRST MR RABIN NEEDS RELATIVELY QUICK PROGRESS BECAUSE HE IS UNDER MOUNTING POLITICAL PRESSURE AT HOME HE WON ELECTION LAST JUNE PROMISING ISRAELIS SECURITY AND PEACE BUT SO FAR HAS BEEN UNABLE TO DELIVER EITHER ISRAELI OFFICIALS SAY THAT MR RABIN CAN'T EXPEND POLITICAL CAPITAL BY MAKING CONCESSIONS TO SYRIA ONLY TO FIND OUT LATER THAT DAMASCUS ISN'T WILLING TO COMPLETE A DEAL UNTIL ISRAEL ALSO HAS REACHED PEACE ACCORDS WITH THE PALESTINIANS JORDAN AND LEBANON SO ISRAEL IS HOPING THAT IT CAN EXPAND ITS TALKS WITH SYRIA TO INCLUDE A MORE INFORMAL LEVEL CURRENTLY THE TWO SIDES MEET AT THE STATE DEPARTMENT IN SESSIONS THAT ARE TAPERECORDED BY EACH SIDE ISRAELI OFFICIALS SAY THEY WOULD LIKE TO INITIATE PRIVATE SESSIONS AT A LOWER DIPLOMATIC LEVEL DURING WHICH THE TWO SIDES CAN EXPLORE HOW FAR EACH IS PREPARED TO GO SO FAR SYRIA HAS RESISTED THIS APPROACH MR RABIN WHO CUT SHORT A US VISIT YESTERDAY TO RETURN HOME TO DEAL WITH ESCALATING VIOLENCE SAYS HE SENSES THAT SYRIAN PRESIDENT HAFEZ AL ASSAD IS READY FOR AN ACCOMMODATION WITH ISRAEL THE PEACE TALKS ARE SCHEDULED TO RESUME APRIL 20 IN WASHINGTON MR RABIN SAYS HE EXPECTS THEY WILL STAY ON SCHEDULE BUT THE PALESTINIANS CURRENTLY ARE REFUSING TO ATTEND UNTIL ISRAEL PERMITS THE RETURN OF THE FUNDAMENTALISTS IT DEPORTED TO LEBANON IN DECEMBER 9303190174 930319 HONG KONG ORDERS RISE HONG KONG ORDERS ON HAND FOR THE 200 LARGEST MANUFACTURERS IN HONG KONG ROSE 3 IN JANUARY FROM A YEAR EARLIER THE GOVERNMENT SAID THE CENSUS AND STATISTICS DEPARTMENT SAID THERE WAS LITTLE CHANGE RECORDED BETWEEN DECEMBER AND JANUARY IT SAID ORDERS IN THE PLASTICPRODUCTS INDUSTRY LED THE INCREASES WITH A 14 JUMP FROM A YEAR EARLIER AND A 15 RISE FROM DECEMBER 9303190173 930319 POLITICS & POLICY OREGON'S REVISED MEDICAID PROPOSAL IS EXPECTED TO WIN CLINTON'S APPROVAL BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON TODAY IS EXPECTED TO ANNOUNCE APPROVAL OF OREGON'S PLAN TO EXTEND MEDICAID BENEFITS TO ALL THE STATE'S POOR PEOPLE BY DENYING COVERAGE FOR SOME COSTLY AND LESSEFFECTIVE MEDICAL SERVICES THE BUSH ADMINISTRATION REJECTED THE PLAN LAST SUMMER SAYING THAT IT VIOLATED A NEW FEDERAL LAW PROTECTING PEOPLE WITH DISABILITIES OREGON SUBSEQUENTLY REVISED ITS APPLICATION TO ADDRESS THOSE CONCERNS AND CLINTON ADMINISTRATION OFFICIALS SAY THE NEW PRESIDENT IS LIKELY TO APPROVE IT THE OREGON PLAN HAS BEEN CLOSELY WATCHED AROUND THE COUNTRY AS AN UNPRECEDENTED WAY TO EXPAND BASIC MEDICAL COVERAGE TO ALL PEOPLE LIVING IN POVERTY CRITICS DENOUNCE IT AS MEDICAL RATIONING BUT SUPPORTERS CONTEND IT IS FAR MORE HUMANE TO PROVIDE SOME BENEFITS FOR ALL RATHER THAN A VAST RANGE FOR SOME OREGON'S MEDICAID PROGRAM NOW COVERS ONLY TWOTHIRDS OF THE PEOPLE ACTUALLY ELIGIBLE FOR BENEFITS UNDER THE STATEFEDERAL HEALTH PROGRAM WE SHOULD CONCENTRATE THE RESOURCES ON THOSE SERVICES THAT DO THE GREATEST GOOD SAID JEAN THORNE OREGON'S MEDICAID DIRECTOR NOW WE HAVE PEOPLE GETTING A FULL RANGE OF SERVICES SOME OF WHICH DO LITTLE GOOD WHILE OTHERS GET NOTHING THE PROPOSED MEDICAID PLAN RANKS 688 MEDICAL PROCEDURES AND SERVICES FROM THE MOST COSTBENEFICIAL TO THE LEAST BASED ON PROJECTIONS OF THE MONEY THEY WOULD HAVE AVAILABLE TO SPEND OREGON OFFICIALS DECIDED THEY WOULDN'T PAY FOR ANY SERVICE RANKED BELOW 568 IN RETURN THE STATE WOULD BRING INTO THE PROGRAM THE 120000 OREGONIANS BELOW THE FEDERAL POVERTY LINE WHO NOW DON'T RECEIVE ANY MEDICAID BENEFITS A SPOKESWOMAN FOR SECRETARY OF HEALTH AND HUMAN SERVICES DONNA SHALALA SAID YESTERDAY THAT A FINAL DECISION ON THE OREGON PLAN HADN'T BEEN MADE SHE SAID MS SHALALA WHO IS LEGALLY RESPONSIBLE FOR RULING ON THE APPLICATION FOR A WAIVER FROM FEDERAL MEDICAID RULES WAS REVIEWING THE PROS AND CONS OF APPROVING THE PROGRAM AND WOULD MAKE A RECOMMENDATION TO PRESIDENT CLINTON BUT A WHITE HOUSE OFFICIAL SAID THE PRESIDENT WAS PLANNING TO APPROVE THE PLAN SEVERAL OFFICIALS SAID THE DECISION WOULD BE ANNOUNCED TODAY THE LIKELY APPROVAL WAS FIRST REPORTED YESTERDAY BY THE OREGONIAN AND THE NEW YORK TIMES MS THORNE WHO MET LAST WEEK IN OREGON WITH FOUR HHS OFFICIALS SAID SHE HAD BEEN GIVEN ENCOURAGING SIGNALS BUT SHE CAUTIONED AFTER LAST SUMMER I'M NOT MAKING ANY PREDICTIONS BUSH ADMINISTRATION OFFICIALS HAD SAID FOR MONTHS LAST YEAR THAT THEY WERE LIKELY TO APPROVE THE OREGON EXPERIMENTATION EVEN THOUGH THEY HAD RESERVATIONS ABOUT IT THEN IN THE 11TH HOUR OF THE APPLICATION REVIEW GROUPS REPRESENTING THE DISABLED COMPLAINED THAT IT WOULD DENY MEDICALLY NECESSARY SERVICES TO PEOPLE WITH DISABILITIES THE ADMINISTRATION DENIED THE APPLICATION BUT SUGGESTED THE STATE SUBMIT A NEW ONE ADDRESSING THE CONCERNS ABOUT THE DISABLED MS THORNE SAID THE STATE HAD REMOVED THE OBJECTIONABLE ELEMENTS OF THE PLAN FOR EXAMPLE SHE SAID IN THE FIRST APPLICATION THE STATE WOULD HAVE DENIED COVERAGE OF LIVER TRANSPLANTS FOR CIRRHOSIS OF THE LIVER CAUSED BY ALCOHOLISM THE BUSH ADMINISTRION CHARGED THAT THIS DISCRIMINATED AGAINST ALCOHOLICS AND THE REVISED PLAN WILL COVER LIVER TRANSPLANTS DUE TO CIRRHOSIS EVEN IF IT WAS CAUSED BY ALCOHOLISM BUT MANY ORGANIZATIONS REPRESENTING PEOPLE WITH DISABILITIES WEREN'T CONVINCED IN A LETTER TO MR CLINTON DATED MARCH 17 GROUPS INCLUDING THE UNITED CEREBRAL PALSY ASSOCIATION THE AMERICAN AMPUTEE FOUNDATION THE AIDS ACTION COUNCIL AND THE AMERICAN ASSOCIATION OF MENTAL RETARDATION CHARGED THAT APPROVING THE OREGON PLAN WILL CREATE DANGEROUS PRECEDENTS FOR PRIVATE HEALTH INSURANCE AND FOR NATIONAL HEALTH CARE REFORM DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON A STRONG ADVOCATE OF STATE EXPERIMENTATION SAID HE WOULD HAVE APPROVED THE OREGON PLAN HOWEVER VICE PRESIDENT AL GORE EXPRESSED STRONG RESERVATIONS ABOUT IT WHEN HE WAS A SENATOR SOME SERVICES THE PROPOSED OREGON MEDICAID PLAN WON'T PAY FOR LIVER TRANSPLANTS FOR LIVER CANCER AND INTRAHEPATIC BILE DUCTS SOME SERVICES THE PLAN WILL PAY FOR 9303190172 930319 BUSINESS BRIEFS LEWIS GALOOB TOYS INC RECEIVED A TWOYEAR FINANCING LINE FOR AS MUCH AS 40 MILLION FROM CONGRESS FINANCIAL CORP EL PASO NATURAL GAS CO FILED AN APPLICATION WITH THE FEDERAL ENERGY REGULATORY COMMISSION SEEKING PERMISSION TO BUILD AND OPERATE A 57 MILLION PIPELINE EXPANSION TO SERVE THE SAMALAYUCA POWER PLANT AND ITS PLANNED EXPANSION CHEMED CORP SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE CLOSELY HELD PATIENT CARE INC TERMS OF THE CASH TRANSACTION WERE NOT DISCLOSED CELTRIX PHARMACEUTICALS INC SIGNED A CROSSLICENSING AGREEMENT WITH GENENTECH INC WHICH WILL BUY 7 OF CELTRIX'S COMMON STOCK FOR 4 MILLION PENN CENTRAL CORP AGREED TO ACQUIRE LEADER NATIONAL INSURANCE CO A UNIT OF DYSONKISSNERMORAN CORP FOR 38 MILLION MCGINNES INDUSTRIAL MAINTENANCE CORP A UNIT OF TRANSAMERICAN WASTE INDUSTRIES INC RECEIVED A PERMIT FROM THE TEXAS WATER COMMISSION FOR THE CONTINUING DISCHARGE OF WASTEWATER FOR FIVE YEARS 9303190171 930319 INTERNATIONAL HYUNDAI GETS LIBYAN CONTRACT SEOUL SOUTH KOREA HYUNDAI ENGINEERING & CONSTRUCTION CO ONE OF THE COMPANIES IN THE SPRAWLING HYUNDAI GROUP EMPIRE SAID IT HAS WON A 16 BILLION CONTRACT FROM LIBYA TO BUILD A THERMOELECTRIC POWER PLANT 9303190169 930319 GUINNESS PLC SAYS PRETAX PROFIT FELL BY 12 DURING '92 SPECIAL TO THE WALL STREET JOURNAL LONDON GUINNESS PLC SAID PRETAX PROFIT FELL 12 IN 1992 DUE TO A LARGE RESTRUCTURING CHARGE AND AN 18 DECLINE IN PROFIT FROM THE BEVERAGE CONCERN'S 25 STAKE IN FRENCH LUXURYPRODUCTS GROUP LVMH MOET HENNESSY LOUIS VUITTON PRETAX PROFIT SLIPPED TO 795 MILLION 109 BILLION FROM 900 MILLION IN 1991 SALES HOWEVER ROSE 73 TO 436 BILLION FROM 407 BILLION IN AN INTERVIEW GUINNESS CHAIRMAN ANTHONY GREENER SAID WE DON'T THINK THE GENERALITY OF THE MARKET CONDITIONS ARE GOING TO GET BETTER IN 1993 FROM 1992 BUT WE EXPECT TO MAKE STEADY PROGRESS BASED ON THE UNDERLYING STRENGTH OF OUR BRANDS WE HAVE QUIET CONFIDENCE THAT WE WILL GET IT RIGHT ACKNOWLEDGING THAT UNITED DISTILLERS' 6 RISE IN SALES AND 3 RISE IN PROFIT BEFORE REORGANIZATION COSTS WERE NOT THE ANNUAL IMPROVEMENTS THE MARKET HAS COME TO EXPECT FROM THAT DIVISION MR GREENER SAID THE COMPANY EXPECTS TO BE ABLE TO PUT THROUGH SOME PRICE INCREASES ON ITS PREMIUM SPIRITS THIS YEAR DEPENDING ON DEMAND THERE IS CLEARLY SOME IMPROVEMENT IN THE US THE CHAIRMAN SAID IN THE UK I THINK WE ARE FAIRLY CAUTIOUS ABOUT THE RATE OF IMPROVEMENT MR GREENER SAID BOTH GERMANY AND FRANCE LOOK DIFFICULT IN THE COMING YEAR I DON'T EXPECT TO SEE MUCH IMPROVEMENT IN SPANISH ECONOMY THIS YEAR HE ADDED EUROPE IS NOT LOOKING FRIGHTFULLY GOOD AT THE MOMENT HE ADDED THAT JAPAN IS DEPRESSED AND THERE'S NOT ANY SIGN OF IT GETTING ANY BETTER MR GREENER SAID THE DECISION TO RAISE GUINNESS'S DIVIDEND BY 97 REFLECTS THE STRONG FINANCIAL POSITION FOR THE COMPANY RATHER THAN FRESH CONFIDENCE ABOUT 1993 GUINNESS'S 795 MILLION PRETAX PROFIT WAS AT THE LOW END OF MARKET EXPECTATIONS THE PROFIT WAS STRUCK AFTER A PREVIOUSLY ANNOUNCED 125 MILLION PROVISION TO COVER THE COSTS OF REORGANIZATION AT LA CRUZ DEL CAMPO CRUZCAMPO GUINNESS'S SPANISH BREWER AND FOR UNITED DISTILLERS' WHISKEY PRODUCTION FACILITIES IN SCOTLAND PROFIT FOR 1991 WAS RESTATED BECAUSE A 56 MILLION CHARGE WAS MOVED ABOVE THE TAX LINE UNDER NEW UK ACCOUNTING RULES THE CHARGE WAS FOR THE SETTLEMENT OF COURT CASES SURROUNDING GUINNESS'S SCANDALRIDDEN 1986 TAKEOVER OF UNITED DISTILLERS SALES AT UNITED DISTILLERS WHICH MAKES SUCH BRANDS AS JOHNNIE WALKER AND DEWAR'S SCOTCH WHISKY AND GORDON'S AND TANQUERAY GIN ROSE TO 258 BILLION FROM 244 BILLION OPERATING PROFIT AFTER THE DIVISION'S 48 MILLION SHARE OF THE EXCEPTIONAL CHARGE WAS 721 MILLION DOWN FROM 749 MILLION IN 1991 SALES OF BEERS SUCH AS CRUZCAMPO LAGER AND GUINNESS STOUT ROSE 99 TO 175 BILLION FROM 159 BILLION OPERATING PROFIT AFTER ITS 77 MILLION PORTION OF THE CHARGE WAS 175 MILLION DOWN FROM 244 MILLION 9303190168 930319 ITALY FAILS IN BID TO SPUR PUBLIC WORKS PROJECTS SETBACK IS LATEST IN EFFORTS BY GOVERNMENT TO MOVE PAST CORRUPTION SCANDAL BY CRAIG FORMAN AND MAUREEN KLINE STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN ITALY'S BELEAGUERED GOVERNMENT SUFFERED A BIG SETBACK AS PARLIAMENT REJECTED PLANS TO GET PUBLICWORKS PROJECTS PARALYZED BY THE COUNTRY'S CORRUPTION SCANDAL MOVING AGAIN MEANTIME THE SOCALLED MANI PULITE OR CLEAN HANDS ANTICORRUPTION INVESTIGATIONS REACHED SEVERAL NEW INFLUENTIAL TARGETS MAGISTRATES ACROSS THE COUNTRY ISSUED A TOTAL OF 30 ARREST WARRANTS YESTERDAY PROSECUTORS IN ROME ISSUED ARREST WARRANTS FOR MAURO LEONE A FORMER SENIOR EXECUTIVE AT THE INSOLVENT STATERUN EFIM INDUSTRIAL GROUP AND SON OF FORMER ITALIAN PRESIDENT GIOVANNI LEONE AND BUSINESSMAN GIUSEPPE CIARRAPICO AND FOUR OF THEIR ASSOCIATES BETTINO CRAXI FORMER SOCIALIST PARTY SECRETARY RECEIVED HIS TENTH NOTICE HE WAS UNDER INVESTIGATION THIS TIME IN CONNECTION WITH HIGHWAY CONSTRUCTION CONTRACTS IN NAPLES PROSECUTORS ISSUED ARREST WARRANTS FOR 12 PEOPLE SEVERAL OF THEM OFFICIALS OF THE STATE HIGHWAY COMPANY ALSO REGARDING ALLEGED INFLUENCE PEDDLING IN THE AWARDING OF CONSTRUCTION CONTRACTS AND A MILAN PROSECUTOR ISSUED AN UNUSUAL PUBLIC STATEMENT DENYING PRESS REPORTS THAT ITALIAN PRESIDENT OSCAR LUIGI SCALFARO HAD BEEN IMPLICATED BY WITNESSES IN THE INVESTIGATIONS YESTERDAY'S DEVELOPMENTS RAISE THE POLITICAL AND ECONOMIC STAKES FOR THE FRAGILE COALITION OF PRIME MINISTER GIULIANO AMATO THE GOVERNMENT IS TRYING DESPERATELY TO PUT THE SCANDALS BEHIND IT SO FAR IT'S FAILING ITALY'S ENORMOUS PUBLICSECTOR IS REELING FROM THE SCANDALS WHICH HAVE LED TO THE DEPARTURES OF DOZENS OF SENIOR EXECUTIVES AND LEFT HUGE SWATHES OF ITALIAN INDUSTRY VIRTUALLY PARALYZED IN PARTICULAR SOME AREAS OF PUBLIC PROCUREMENT ARE GRINDING TO A HALT WITH THE CONSTRUCTION SECTOR PARTICULARLY HARD HIT THE CHAMBER OF DEPUTIES PARLIAMENT'S LOWER HOUSE OVERRODE BY A NARROW FOURVOTE MARGIN A GOVERNMENT DECREE THAT WOULD HAVE ALLOWED CONSTRUCTION TO RESUME ON DOZENS OF SITES SHUT DOWN DUE TO INVESTIGATIONS INTO PUBLICWORKS PAYOFFS THE MEASURE WAS VIEWED AS CRITICALLY IMPORTANT BY THE GOVERNMENT PUBLIC WORKS MINISTER FRANCESCO MERLONI WARNED YESTERDAY THAT 30000 JOBS ARE AT RISK BECAUSE OF THE CONTINUING IMPASSE THE DEFEAT WHILE FALLING SHORT OF A FORMAL VOTE OF NO CONFIDENCE CONFIRMS THE SHAKINESS OF THE FOURPARTY RULING COALITION OPPOSITION LEGISLATORS JOINED FORCES WITH DEFECTORS FROM THE GOVERNING PARTIES TO DEFEAT THE MEASURE 196 TO 192 YESTERDAY'S VOTE IS THE SECOND DEFEAT FOR THE GOVERNMENT IN ITS EFFORTS TO FIND A POLITICAL ROUTE TO LIMIT THE FALLOUT FROM THE SCANDAL WHICH HAS LED TO THE INVESTIGATIONS OR ARRESTS OF NEARLY 1000 POLITICIANS AND BUSINESSMEN INCREASINGLY EVEN MEMBERS OF THE RULING PARTIES SEEM WILLING TO CROSS POLITICAL LINES TO PUT DISTANCE BETWEEN THEMSELVES AND THE GOVERNMENT'S HANDLING OF THE CRISIS GOVERNMENT LOYALISTS WARNED THAT DEPUTIES WHO CROSSED PARTY LINES WERE DAMAGING THE RULING COALITION THEY HAVE NO SENSITIVITY OF THE GRAVITY OF THE MOMENT CHRISTIAN DEMOCRAT WHIP GERARDO BIANCO TOLD THE ASSOCIATED PRESS BUT HE ADDED HE DIDN'T THINK THERE WOULD BE DIRECT REPERCUSSIONS FOR THE GOVERNMENT SEPARATELY THE LEGISLATURE VOTED TO LIFT THE PARLIAMENTARY IMMUNITY OF FRANCESCO DE LORENZO FORMER HEALTH MINISTER AND A LIBERAL WHO HAS BEEN UNDER INVESTIGATION FOR ALLEGED VOTE BUYING IN HIS HOME DISTRICT OF NAPLES THE SENATE MEANWHILE ONLY PARTLY LIFTED THE IMMUNITY OF A SENATOR WHO MAY HAVE PLAYED A KEY ROLE IN THE SCANDALS SEVERINO CITARISTI A FORMER SENIOR ADMINISTRATOR OF THE CHRISTIAN DEMOCRATS IS UNDER INVESTIGATION ON 18 SEPARATE ALLEGATIONS OF POLITICALFINANCING IRREGULARITIES AND CORRUPTION WHILE THEY LIFTED MR CITARISTI'S PARLIAMENTARY IMMUNITY ON THE POLITICALFINANCING CHARGES THE SENATE ALSO BARRED PROSECUTORS FROM SEARCHING MR CITARISTI'S HOUSE OR ARRESTING HIM 9303190167 930319 BROTHER INDUSTRIES LTD TOKYO BROTHER INDUSTRIES LTD A JAPANESE MAKER OF SMALL MACHINERY SAID IT WILL TRANSFER PRODUCTION OF PORTABLE ELECTRONIC TYPEWRITERS TO A US PLANT FOR EXPORT TO JAPAN AND OTHER PARTS OF ASIA THE COMPANY SAID IT WILL MARKET FOUR MODELS OF THE ENGLISHLANGUAGE MACHINES IN JAPAN A MOVE INTENDED TO HELP EASE JAPAN'S SWELLING TRADE SURPLUS BROTHER SAID IT PLANS TO IMPORT 2000 OF THE USPRODUCED UNITS MONTHLY THE COMPANY MANUFACTURES MODELS IN THE US AND EUROPE FOR SALE IN THOSE RESPECTIVE LOCALES BUT TO DATE HAS BEEN MAKING UNITS FOR ASIAN MARKETPLACES IN JAPAN 9303190166 930319 CANADIAN TRADE SURPLUS OTTAWA CANADA HAD A TRADE SURPLUS OF 190 BILLION CANADIAN DOLLARS US152 BILLION IN JANUARY ITS BIGGEST MONTHLY SURPLUS IN ALMOST EIGHT YEARS STATISTICS CANADA A GOVERNMENT AGENCY SAID EXPORTS ROSE 36 IN JANUARY TO A RECORD C1455 BILLION FROM C1405 BILLION IN DECEMBER IMPORTS DROPPED 3 TO C1265 BILLION FROM C1304 BILLION THE US TOOK 783 OF CANADA'S EXPORTS IN JANUARY AND SUPPLIED 728 OF CANADA'S IMPORTS 9303190165 930319 BUSINESS BRIEF UNITED TECHNOLOGIES TO CLOSE MORE SITES OF ITS PRATT & WHITNEY JET ENGINE UNIT UNITED TECHNOLOGIES CORP SAID IT WILL CLOSE MORE OF ITS JET ENGINE FACILITIES THAN PREVIOUSLY ANNOUNCED THE HARTFORD CONN COMPANY ALSO SAID IT WILL DECENTRALIZE THE JET ENGINE BUSINESS INTO DISTINCT GROUPS WITH EACH ACCOUNTING FOR ITS OWN PERFORMANCE THE MOVE IS INTENDED TO IMPROVE RESULTS OF THE PRATT & WHITNEY DIVISION WHICH LAST YEAR HAD A 500 MILLION LOSS AND WHICH FACES SHARPLY REDUCED BUSINESS PRATT & WHITNEY COMPRISES THE MAJOR PART OF THE COMPANY'S POWER SEGMENT WHICH HAD 694 BILLION IN REVENUE IN 1992 UNDER A COMPANYWIDE RESTRUCTURING PLAN ANNOUNCED LAST YEAR THE PRATT & WHITNEY DIVISION WAS SCHEDULED TO LOSE THREE MILLION SQUARE FEET OF ITS 15 MILLION SQUARE FEET OF MANUFACTURING SPACE UNITED TECHNOLOGIES SAID YESTERDAY THAT IT WILL CUT AN ADDITIONAL TWO MILLION SQUARE FEET OF SPACE FROM THOSE FACILITIES THE COMPANY SAID THAT IN EARLY MAY IT WILL IDENTIFY THE MANUFACTURING PLANTS ADMINISTRATIVE BUILDINGS AND WAREHOUSES TO BE AFFECTED BY THE NEW REDUCTION BUT IT SAID THE CLOSINGS WON'T INVOLVE ANY FURTHER EMPLOYMENT REDUCTION IN DECENTRALIZING THE PRATT & WHITNEY DIVISION UNITED TECHNOLOGIES WILL FOLLOW A MANAGEMENT STRUCTURE THAT HAS BEEN IN PLACE AT ITS OTHER BUSINESSES SUCH AS OTIS WHICH MAKES ELEVATORS AND CARRIER WHICH MAKES AIR CONDITIONING AND HEATING SYSTEMS KARL J KRAPEK PRESIDENT OF PRATT & WHITNEY SAID DECENTRALIZATION AT THE JET ENGINE UNIT WASN'T NECESSARY IN THE PAST BECAUSE OF THE EXPLOSION OF GOVERNMENT SPENDING NOW HE SAID WE DON'T SEE THE INDUSTRY IMPROVING FOR TWO TO THREE YEARS SO WE ARE PUSHING HARDER OUR TARGET IS TO REDUCE COSTS 35 BY 1996 THAT'S WHAT IS DRIVING EVERYTHING WE ARE DOING HE SAID THE DECENTRALIZATION WILL REDUCE THE NUMBER OF MANAGERS AT THE UNIT TO 200 FROM 300 AND HE SAID PRATT & WHITNEY WILL REORGANIZE ITS BUSINESS INTO AS MANY AS 12 PRODUCT GROUPS MR KRAPEK SAID EACH OF THESE GROUPS WILL ISSUE ITS OWN PROFIT AND LOSS STATEMENTS WE WANT TO PUSH PROFIT AND LOSS ACCOUNTABILITY DOWN INTO THE ORGANIZATION HE SAID THE COMPENSATION OF ALL SENIOR MANAGERS AT THE DIVISION WILL BE LINKED TO PERFORMANCE OF THEIR UNITS INCLUDING INDEPENDENTLY AUDITABLE EMPLOYEE AND CUSTOMER SATISFACTION NUMBERS HE SAID 9303190164 930319 DOWN THE UP ESCALATOR WHY SOME WORKERS ARE FALLING BEHIND REAL HELP JOB RETRAINING LINKED CLOSELY TO EMPLOYERS WORKS IN CINCINNATI STUDENTS GET A FRESH START FIRMS GET TECHNICIANS WHO ARE CLEARLY EAGER FEW PROGRAMS FOR MANAGERS BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL MORE AND MORE AMERICANS LACK THE KIND OF SKILLS THEY NEED TO GET OR KEEP HIGHPAYING JOBS AS EMPLOYERS REACT TO FOREIGN COMPETITION LABORSAVING TECHNOLOGIES AND OTHER FORCES OF RAPID CHANGE ROGER MILES COULD HAVE BEEN ONE OF THEM MR MILES WHO IS 36 SPENT THE FIRST 14 YEARS OF HIS WORKING LIFE ATTACHING HOODS AND DOORS TO CAMAROS AND FIREBIRDS AT A GENERAL MOTORS CORP ASSEMBLY PLANT NEAR CINCINNATI A HIGHSCHOOL GRADUATE HE EARNED 14 AN HOUR VACATIONED EVERY YEAR WITH HIS WIFE AND CHILDREN IN FLORIDA AND PLANNED TO RETIRE WITH A CUSHY PENSION AT AGE 48 THEN IN 1987 GM CLOSED THE PLANT LAID OFF 4000 EMPLOYEES AND WRECKED HIS DREAMS I WAS DEVASTATED HE SAYS TODAY MR MILES WORKS AS A NURSE IN AN INTENSIVECARE HOSPITAL WARD EARNING 12 AN HOUR A WAGE THAT COULD RISE TO MORE THAN 18 AN HOUR AS HE GAINS EXPERIENCE SOON HIS WIFE WILL BE ABLE TO CUT BACK TO WORKING JUST PART TIME AND FOR THE FIRST TIME IN YEARS THE FAMILY WILL TAKE A SPRING TRIP TO FLORIDA WHAT RELAUNCHED MR MILES AND THOUSANDS OF UNEMPLOYED AND UNDEREMPLOYED PEOPLE IN THE CINCINNATI AREA IS A FORM OF JOB PREPARATION KNOWN AS COOPERATIVE EDUCATION CONCEIVED BY A CINCINNATI UNIVERSITY PROFESSOR IN 1906 COOPERATIVE EDUCATION LINKS JOBRELATED INSTRUCTION IN THE CLASSROOM AND PAID WORK EXPERIENCE USUALLY IN ALTERNATING TERMS FOR TWO TO FOUR YEARS AROUND THE US MANY INSTITUTIONS OFFER SUCH PROGRAMS BUT THE CINCINNATI AREA HAS FIVE OF THEM THE LARGEST CONCENTRATION IN THE COUNTRY THE RESULT IS A STEADY STREAM OF TECHNICIANS CALIBRATED TO THE NEEDS OF THE AREA'S EMPLOYERS MR MILES'S ALMA MATER IS CINCINNATI TECHNICAL COLLEGE A TWOYEAR STATE SCHOOL THAT FINDS SKILLED JOBS FOR 98 OF ITS COOP STUDENTS AND WHERE ONLY 11 OF THE GRADUATES DON'T GET JOBS IN THEIR CHOSEN TRADES THIS IS ONE OF CINCINNATI'S BESTKEPT SECRETS SAYS WILLIAM HOEB AN EXECUTIVE AT CINCINNATI MILACRON INC WHICH OFFERS PERMANENT JOBS TO SOME OF THE STUDENTS WHO EXCEL IN THE MACHINERY MAKER'S 72 COOP POSITIONS ONE ELEMENT IN CINCINNATI'S SUCCESS NO DOUBT IS THE RELATIVELY LOW UNEMPLOYMENT RATE IN THE REGION 55 VS 7 NATIONALLY THIS MEANS THE AREA HAS EMPLOYERS WHO NEED WORKERS AND ARE INTERESTED IN COOPERATING WITH PROGRAMS SUCH AS THESE BUT ANOTHER KEY IS SOMETHING THAT IS LACKING IN MOST STATE AND FEDERAL JOBTRAINING PROGRAMS AN INTIMATE SYMBIOTIC RELATIONSHIP BETWEEN LOCAL BUSINESSES THAT HAVE JOBS TO OFFER AND THE EDUCATIONAL INSTITUTIONS THAT ARE PREPARING WORKERS FOR THEM FORGING A NEW MIDDLE CLASS OF TECHNICIANS FROM THIS RELATIONSHIP IS CONSIDERED AMERICA'S BEST BET FOR OFFSETTING THE ENORMOUS DISPLACEMENT OF WORKERS BY GLOBAL COMPETITION AUTOMATION INDUSTRY SHRINKAGE AND CORPORATE DOWNSIZING ACCORDING TO EXPERTS SUCH AS ROBERT REICH THE LABOR SECRETARY THESE TRENDS THE FOUR HORSEMEN OF THE WORKPLACE ARE DISLOCATING MILITARY PERSONNEL DEFENSE WORKERS OTHER BLUECOLLAR TYPES AND LOWLEVEL WHITECOLLAR EMPLOYEES SUCH AS SECRETARIES AS WELL AS THE FORMER ELITEMIDDLE MANAGERS AND PROFESSIONALS SUCH AS ENGINEERS AND CHEMISTS BUT THE MOST SUCCESSFUL TRAINING PROGRAMS ARE OVERWHELMINGLY TILTED TOWARD THE LOWERPAID FACTORY AND OFFICE WORKERS THEY IDENTIFY A GROWING NUMBER OF JOBS THAT REQUIRE A COUPLE OF YEARS OF TECHNICAL TRAINING NOT ADVANCED DEGREES BECAUSE THE NEW BREED OF WORKER IS OFTEN LINKED TO A SMART MACHINE OR COMPUTER FOR INSTANCE THE TWOYEAR CHEMICAL ENGINEERING TECHNOLOGY PROGRAM AT KANSAS STATE UNIVERSITY/SALINA COLLEGE OF TECHNOLOGY CAN'T MEET DEMAND FOR ITS YEARLY HANDFUL OF GRADUATES WHO OPERATE INSTRUMENTS THAT PERFORM CHEMICAL ANALYSIS MAINLY FOR ENVIRONMENTAL MONITORING IRONICALLY THE COMBINATION OF SUCH TOOLS AND TECHNICIANS HELPS PUT HIGHERPAID PROFESSIONAL ENGINEERS OUT OF WORK WHAT'S WORSE THERE ARE FEW RETRAINING PROGRAMS FOR SUCH PROFESSIONALS OR FOR THE MIDDLE MANAGERS WHO ONCE PERFORMED STAFF FUNCTIONS FOR BIG COMPANIES MOSTLY BECAUSE GENERALIZED INSTRUCTION IS RARELY RELEVANT TO THEIR NEXT JOBS SAYS ANTHONY CARNEVALE CHIEF ECONOMIST AT AMERICAN SOCIETY FOR TRAINING AND DEVELOPMENT IN WASHINGTON DC THE KEY THING A STAFF MANAGER LACKS IS A DEEP UNDERSTANDING OF HIS NEXT EMPLOYER'S CULTURE AND INDUSTRY AND THAT CAN BE GAINED ONLY THROUGH YEARS OF ONTHEJOB EXPERIENCE ANY NEW SKILLS A TECHNICAL VETERAN NEEDS CAN BE TAUGHT IN A MATTER OF MONTHS THOUGH NOT UNTIL HE KNOWS THE PRECISE NATURE OF THE NEXT JOB ASSIGNMENT THUS THE BEST REMEDY FOR ELITEWORKER JOBLESSNESS IS COUNSELING JOBSEARCH ASSISTANCE AND PEER SUPPORT MR CARNEVALE SAYS ONCE UNEMPLOYED MANAGERS HAVE MUCH MORE DIFFICULTY REGAINING THEIR STATUS AND SALARY THAN TECHNICAL PEOPLE LABOR DEPARTMENT STUDIES SHOW IT OFTEN TAKES MIDDLE MANAGERS 10 YEARS OR MORE TO REGAIN THEIR PREVIOUS WAGE LEVELS THOUGH OUTPLACEMENT ASSISTANCE OFFERED BY MANY LARGE CORPORATIONS CAN SPEED THINGS UP THIS HELP COSTS AN EMPLOYER 8000 TO 12000 PER MANAGER BESIDES THE EXCLUSION OF MANAGERS AND PROFESSIONALS THERE ARE ENDEMIC PROBLEMS EVEN WITH THE THOUSANDS OF EXISTING JOBTRAINING PROGRAMS THE FEDERAL GOVERNMENT SPENDS NEARLY 5 BILLION ANNUALLY TRYING TO GET DISPLACED WORKERS AND WELFARE MOTHERS BACK INTO THE WORK FORCE AND PRESIDENT CLINTON PLANS TO INCREASE JOBTRAINING FUNDS SIGNIFICANTLY BUT MUCH OF THAT MONEY IS WASTED WELFARETOWORK PROGRAMS FOR EXAMPLE HAVE REDUCED THE NUMBER OF MOTHERS ON THE DOLE BY ABOUT 8 BUT HAVE LARGELY FAILED TO LIFT THEM OUT OF POVERTY MANY GOVERNMENTSPONSORED RETRAINING AND VOCATIONAL SCHOOLS ARE GEARED TO JOBS THAT DON'T EXIST OR TO TRADES PAYING MUCH LESS THAN A WORKER'S PREVIOUS ONE INVARIABLY THEY SUFFER FROM A LACK OF COORDINATION WITH THE PRIVATE SECTOR IN WATSONVILLE CALIF MARIA COLLAZO SPENT SIX MONTHS RETRAINING AS A CLERICAL WORKER AFTER BEING LAID OFF BY THE GREEN GIANT FOODPROCESSING UNIT OF PILLSBURY CO WHICH IN TURN IS OWNED BY GRAND METROPOLITAN PLC OF LONDON THE TRAINING SHE SAYS CONSISTED OF SITTING IN FRONT OF TYPEWRITERS AND COMPUTERS WITH SELFHELP LEARNING PAMPHLETS FOR THE NEXT NINE MONTHS MS COLLAZO 40 SOUGHT SECRETARIAL WORK AT SOME 70 LOCAL COMPANIES BUT NONE OF THEM HIRED HER THEY TOLD ME I WASN'T QUALIFIED BECAUSE I DIDN'T HAVE ENOUGH EXPERIENCE SAYS MS COLLAZO WHO IS THE SOLE PROVIDER FOR A FAMILY OF FOUR AND ENDED UP CLEANING HOUSES BEFORE RECENTLY REVERTING TO UNEMPLOYMENT ON WASHINGTON'S OLYMPIC PENINSULA LEGIONS OF OUTOFWORK LUMBERJACKS HAVE ENCOUNTERED SIMILAR DISAPPOINTMENTS SCOTT JAMIESON SPENT MONTHS BEING RETRAINED AS A LAND SURVEYOR BY A COMMUNITY COLLEGE IN PORT ANGELES WASH BUT THE NEAREST SURVEYING JOB HE COULD FIND WAS A 9ANHOUR SLOT IN ALASKA DESPERATE HE TOOK IT ONLY LONG ENOUGH TO PAY FOR THE RETURN TRIP HOME TO HIS WIFE AND TWO KIDS FOR A FAMILY MAN I JUST COULDN'T MAKE IT SAYS MR JAMIESON 43 WHO HAS SINCE BEEN TEMPORARILY REHIRED AS A LOGGER IN MANY CASES SIMPLE JOBSEARCH ASSISTANCE IS PREFERABLE TO COSTLY TIMECONSUMING RETRAINING A JOB SEARCH COSTS BETWEEN 300 AND 350 PER PERSON COMPARED WITH AS MUCH AS 4000 PER PERSON IN RETRAINING A NEW JERSEY STUDY OF UNEMPLOYED WORKERS FOUND THAT RETRAINED WORKERS ACTUALLY EARNED AN AVERAGE OF 250 LESS IN THE FIRST YEAR THAN THOSE WHO GOT JOBSEARCH ASSISTANCE MAINLY BECAUSE OF TIME SPENT IN THE CLASSROOM IN LATER YEARS THE RETRAINED GROUP EARNED ABOUT THE SAME AS THE JOBSEARCH GROUP THE BOTTOM LINE IS THAT FOR MANY INDIVIDUALS THEY HAVE MARKETABLE SKILLS AND CAN FIND JOBS WITH SOME ASSISTANCE SAYS WALTER CORSON VICE PRESIDENT OF MATHEMATICA POLICY RESEARCH INC A PRINCETON NJ FIRM THAT CONDUCTED THE STUDY LOUIS JACOBSON SENIOR ECONOMIST AT WESTAT A CONSULTING FIRM IN ROCKVILLE MD THINKS RETRAINING MAY HELP FEWER THAN 10 OF THE PEOPLE WHO TAKE IT AT CINCINNATI TECHNICAL COLLEGE HOWEVER RETRAINING WORKS FOR NEARLY ALL GRADUATES BECAUSE THE PROGRAM IS SO FOCUSED ON LOCAL JOB NEEDS FROM THE OUTSIDE THE SCHOOL RESEMBLES AN ANTIQUATED FACTORY COMPLETE WITH A BRICK SMOKESTACK INSIDE CLASSROOMS ARE CRAMMED WITH COMPUTERS EQUIPPED WITH THE LATEST SOFTWARE PLUS DOZENS OF LASERS ROBOTS AND COMPUTERIZED METALWORKING MACHINES THESE ADVANCED TOOLS OF THE TRADE ARE USED TO TEACH EVERYTHING FROM CIVIL ENGINEERING TECHNIQUES AND COMPUTERAIDED MANUFACTURING TO LANDSCAPE HORTICULTURE AND PUBLISHING FOR AVIATIONMAINTENANCE STUDENTS THERE IS A HANGAR WITH SIX AIRCRAFT FOR CHEFS A RESTAURANTQUALITY KITCHEN FOR NURSES A SURGICAL SUITE MOST OF THE EQUIPMENT WAS DONATED OR ACQUIRED AT MINIMAL COST FROM LOCAL EMPLOYERS ABOUT 600 LOCAL BUSINESSES PROVIDE 3200 COOP POSITIONS FOR CTC STUDENTS EACH YEAR ONE IS PROCTER & GAMBLE CO WHICH USES STUDENTS IN SCIENTIFIC LABS TO TEST NEW INGREDIENTS FOR SOAPS AND OTHER PRODUCTS AND IN FACTORYBASED HEALTH CLINICS TO PROCESS EMPLOYEE MEDICAL FORMS ANOTHER IS FRISCH'S RESTAURANTS INC WHICH RARELY HIRES MANAGERS FROM THE OUTSIDE PARTLY BECAUSE SO MANY CTC GRADS RISE THROUGH THE RANKS FROM LOWLEVEL JOBS IN ACCOUNTING MANAGEMENTINFORMATION SYSTEMS AND AIRCONDITIONING MAINTENANCE ELSEWHERE IN THE COUNTRY MOST COMPANIES HIRE CONSTANTLY FROM THE OUTSIDE CASTING THEIR NETS AS FAR AS NECESSARY FOR ALREADYSKILLED WORKERS EXPERIENCED LABOR IS PLENTIFUL THESE DAYS THEY NOTE AND TRAINEES REQUIRE COSTLY SUPERVISION NEVERTHELESS STARTING WAGES FOR NEWLY TRAINED WORKERS ARE RELATIVELY LOW AND THERE IS RISK IN BASING HIRING DECISIONS ON BRIEF INTERVIEWS AND REFERENCES THAT MAY BE LESS THAN CANDID CINCINNATI EMPLOYERS IN CONTRAST HAVE 10 WEEKS OR MORE TO EVALUATE STUDENTS AND VICE VERSA DURING THEIR COOP STINTS IT'S LIKE HAVING A NONPAID RECRUITING SYSTEM OUT THERE IF WE DON'T LIKE THEM WE DON'T HAVE TO HIRE THEM SAYS KEITH BECKER VICE PRESIDENT OF BAYERBECKER ENGINEERS A HIGHWAY AND BRIDGE DESIGNER A NEW HIRE TRAINED IN A COOP PROGRAM MAKES MONEY FOR BAYERBECKER ALMOST IMMEDIATELY HE FIGURES WHILE AN UNSKILLED NEW WORKER CAN TAKE UP TO FIVE YEARS MORE THAN 60 OF THE FIRM'S EMPLOYEES ARE CTC ALUMNI MOREOVER CINCINNATI TECHNICAL COLLEGE STUDENTS WHOSE AVERAGE AGE IS 29 REALLY HAVE TO WORK FOR WHAT THEY GET THUS THEY TEND TO SHOW THE DETERMINATION THAT EMPLOYERS APPLAUD THE TWO YEARS AT CTC CAN INVOLVE BIG SACRIFICES FOR STUDENTS WITH FAMILIES AND MORTGAGES INCOME EARNED IN COOP PLACEMENTS NET OF TUITION AND BOOKS USUALLY AMOUNTS TO ONLY 3500 A YEAR MANY STUDENTS HAVE TO COBBLE TOGETHER OTHER MEANS OF SUPPORT INCLUDING GOVERNMENT FINANCIAL AID SEVERANCE OR UNEMPLOYMENT BENEFITS A SPOUSE'S WAGES AND A NEST EGG THERE IS NO ENTERTAINMENT OTHER THAN WHAT'S ON TV AND NO DINING OUT SAYS STEVEN OSSENBECK 40 THE CONSTRUCTION WORKERCUMENGINEERING TECHNICIAN WHOSE WIFE WORKS TWO JOBS TO PAY THEIR 25000 ANNUAL LIVING EXPENSES CTC EMPLOYS 16 FULLTIME COORDINATORS 10 OF ITS FACULTY TO FIND CHALLENGING COOP SLOTS MONITOR EMPLOYERS AND ADDRESS ANY DIFFICULTIES ON THE JOB COORDINATORS MEET WITH INDUSTRY ADVISORY BOARDS TO FINETUNE THE CURRICULUM SO IT COMPLEMENTS THE HANDSON LEARNING FOR EXAMPLE A REPRESENTATIVE OF DELTA AIR LINES WHICH HAS A JETMAINTENANCE FACILITY IN CINCINNATI ASKED CTC TO OFFER A COURSE IN AVIONICS WHICH IS CRUCIAL TO WORKING ON NEWER JETS BUT PLANS TO ADD BAKERY COURSES TO A CULINARYARTS PROGRAM WERE DROPPED AFTER A MANAGER AT THE CITY'S LARGEST HOTEL THE CLARION ADVISED THAT PASTRYCHEF JOBS WERE SCARCE ANOTHER WAY THE COLLEGE KEEPS ITS FINGER ON THE PULSE OF LOCAL BUSINESS BUILDS GOODWILL AND DEFRAYS SOME OF ITS COSTS IS THROUGH CONTRACT TRAINING IT PROVIDES ONSITE INSTRUCTION AT A LOCAL FORD MOTOR CO TRUCK TRANSMISSION PLANT FOR ABOUT 200 WORKERS ANNUALLY LEADERSHIP TRAINING AT CINCINNATI BELL INC AND ACCOUNTING WORKSHOPS AT THE LOCAL OFFICE OF PRUDENTIAL INSURANCE CO OF AMERICA CTC'S PROGRAMS FIGURE IN EFFORTS TO ATTRACT NEW BUSINESSES TO THE AREA OR START UP NEW ONES TWO YEARS AGO STEVE HAUCK A CTC GRADUATE FOUNDED AMERICAN LASER TECHNOLOGIES INC WHICH MAKES CUSTOMIZED METAL PARTS FOR AEROSPACE CUSTOMERS HE AND MOST OF HIS 11 EMPLOYEES WERE TRAINED BY CTC'S LASER EXPERT PREM BATRA FACULTY MEMBERS AREN'T IVORYTOWER TYPES MANY TEACH PART TIME WHILE WORKING IN THEIR FIELDS WE HAVE ALL THIS ACCOUNTABILITY AND FEEDBACK AND THAT FORCES US TO GO HAND IN HAND WITH INDUSTRY SAYS PAUL CALLAHAN DEAN OF BUSINESS TECHNOLOGIES OUR BIGGEST CHALLENGE AND FRUSTRATION IS KEEPING UP WITH CHANGES IN THE WORKPLACE CTC STAYS TUNED IN TO STUDENTS' NEEDS TOO CLASSES RUN UNTIL LATE AT NIGHT TO ACCOMMODATE WORK SCHEDULES THE SCHOOL ALSO PROVIDES CHILD CARE RUN BY THE SALVATION ARMY THOUGH REQUIRING A HIGHSCHOOL DIPLOMA OR ITS EQUIVALENT FOR ADMISSION CTC OFFERS REMEDIAL INSTRUCTION AND TUTORING TO HELP STUDENTS MAINTAIN MINIMUM GRADEPOINT REQUIREMENTS THE TAGLINE OF CTC'S 160000 ADVERTISING CAMPAIGN THE COLLEGE THAT WORKS SOME LIBERALARTS MAJORS WHO HAVE FAILED TO LAND GOOD JOBS AFTER GRADUATING FROM FOURYEAR COLLEGES WIND UP AT CTC IN ADDITION SCHOOL REPRESENTATIVES PROSPECT FOR STUDENTS BY VISITING AFRICANAMERICAN CHURCHES AND COMPANIES THAT HAVE JUST ANNOUNCED BIG LAYOFFS THE SCHOOL'S NETWORKING IN THE COMMUNITY IS EXPENSIVE TUITION OF 2200 PER YEAR AND OTHER FEES SUCH AS FOR CONTRACT TRAINING COVER ABOUT HALF THE SCHOOL'S 22 MILLION ANNUAL BUDGET THE STATE PAYS THE BALANCE FUNDING THAT IN EFFECT IS CONTINGENT ON CTC'S ABILITY TO MAINTAIN ITS 98 JOBPLACEMENT RECORD BEYOND THE STATISTICS LIE NUMEROUS SUCCESS STORIES OF PEOPLE WHO FIND UNLIKELY NEW CAREERS THE IBM SYSTEMS ENGINEER TURNED SURVEYOR THE CONSTRUCTION WORKER HURT BY THE REALESTATE SLUMP BUT SOON TO GRADUATE AS AN ENVIRONMENTAL ENGINEERING TECHNICIAN AND THE HOUSEWIFE WHO LEFT HER ABUSIVE HUSBAND AT AGE 42 AND NOW WORKS AS A CHEMICALLAB TECHNICIAN AFTER BEING LAID OFF BY A DOORBELL MANUFACTURER PATRICIA NELSON A 39YEAROLD SINGLE MOTHER DECIDED TO BECOME A MEDICALRECORDS SPECIALIST PROCESSING HOSPITAL PAPERWORK DIDN'T PARTICULARLY APPEAL TO HER BUT A CTC COUNSELOR SAID THE FIELD PRACTICALLY GUARANTEED HER JOB SECURITY MAYBE I COULD HAVE GOTTEN 6 AN HOUR AS A BOOKKEEPER SOMEWHERE AND ANOTHER OPPORTUNITY TO SEE MYSELF LAID OFF AGAIN FIVE YEARS FROM NOW I HAD TO MAKE MYSELF MORE MARKETABLE SAYS MS NELSON WHO IS IN LINE FOR AN 11ANHOUR HOSPITAL JOB WHEN SHE GRADUATES THIS SUMMER AT AGE 50 KATHY JANSZEN WAS FORCED OUT OF A CLERICAL JOB IN A COUNTY COURTHOUSE AND THEN SEARCHED IN VAIN FOR SECRETARIAL JOBS FINALLY IN TEARS SHE APPROACHED CTC WHERE SHE LEARNED FIRST HOW TO APPLY FOR VARIOUS KINDS OF FINANCIAL AID AND THEN HOW TO STUDY SPECIAL TUTORING HELPED HER THROUGH THE EXECUTIVESECRETARY PROGRAM NO MATTER WHAT IT WAS THESE PEOPLE ALWAYS HAD TIME FOR ME SHE SAYS A FEW WEEKS AGO AFTER A SCREENING OF JOB OPPORTUNITIES BY CTC SHE SIGNED ON AS A SALES OFFICE MANAGER FOR A LARGE FOUNDRY SHE IS ABOUT TO START AT 22900 A YEAR UP FROM 19500 IN HER OLD JOB I'M SO HAPPY I CAN'T TELL YOU AND THIS SCHOOL IS RESPONSIBLE FOR IT SHE SAYS THEY STRIVE TO MAKE SURE YOU ARE A SUCCESS JIM CARLTON CONTRIBUTED TO THIS ARTICLE 9303190163 930319 INTERNATIONAL GERMANY CUTS DISCOUNT RATE TO 75 FROM 8 EUROPEAN STOCK REACTION IS MUTED TO SMALL DROP OTHER COUNTRIES FOLLOW BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE BUNDESBANK LOWERED ITS DISCOUNT RATE FOR THE SECOND TIME IN SIX WEEKS AS A DEEPENING RECESSION IN GERMANY THREATENS TO DRAG DOWN NEIGHBORING EUROPEAN ECONOMIES BUT THE RATE CUT WAS BOTH SMALL AND EXPECTED AND THE IMPORTANT LOMBARD RATE WAS LEFT UNCHANGED AT 9 EUROPEAN STOCK MARKETS THEREFORE HAD LITTLE REACTION ALTHOUGH THE DOLLAR AND THE FRENCH FRANC WEAKENED AGAINST THE MARK THE BUNDESBANK'S CENTRAL BANK COUNCIL CROPPED THE KEY LENDING RATE TO 75 FROM 80 LAST SUMMER THE RATE STOOD AT 875 IN A BRIEF STATEMENT FOLLOWING THE ANNOUNCEMENT THE BUNDESBANK CALLED THE STEP A CONTINUATION OF A POLICY OF GRADUAL INTERESTRATE REDUCTIONS GERMANY'S DISCOUNT RATE OFFERS BANKS A LIMITED AMOUNT OF INEXPENSIVE REFINANCING UNDER FIXED BORROWING QUOTAS BORROWING FROM THE LOMBARD FACILITY IS UNLIMITED AND IS MORE CLOSELY WATCHED BY THE CREDIT MARKETS BECAUSE THE LOMBARD RATE SERVES AS A CEILING FOR SHORTTERM MONEY MARKET RATES WHAT THEY ARE DOING IS CONDUCTING AN ORDERLY RETREAT ON MONETARY POLICY SAID RICHARD REID CHIEF ECONOMIST FOR UNION BANK OF SWITZERLAND IN FRANKFURT IT IS CONSISTENT WITH THE VIEW THAT THE BUNDESBANK WILL BE DRAGGED INTO SMALL RATE CUTS BUT NOT BOUNCED INTO BIG ONES THE BANK'S LINGERING FEARS THAT FISCAL BORROWING COULD REVIVE INFLATION AND WEAKEN THE MARK SUGGEST THAT IT WILL BE CAUTIOUS ABOUT FUTURE RATE REDUCTIONS YESTERDAY DENMARK SWITZERLAND THE NETHERLANDS BELGIUM AND AUSTRIA FOLLOWED THE BUNDESBANK MOVE WITH THEIR OWN RATE CUTS BUT FOR THE MOST PART ANALYSTS SAID THE GERMAN CUT WON'T DO ENOUGH TO HELP OTHER BELEAGUERED NATIONS EUROPEAN COUNTRIES HAVE BEEN FORCED TO HOLD THEIR INTEREST RATES HIGH TO PROTECT THEIR CURRENCIES AGAINST SPECULATORS IN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM EVEN IN THE FACE OF ECONOMIC WOES BRITAIN AND ITALY EVEN GAVE UP IN SEPTEMBER WHEN THEY TEMPORARILY WITHDREW THEIR CURRENCIES FROM THE EUROPEAN CURRENCY GRID THE EUROPEAN ECONOMY IS FALLING FASTER THAN THE BUNDESBANK CAN REDUCE INTEREST RATES SAID JUERGEN PFISTER CHIEF ECONOMIST OF COMMERZBANK AG IN FRANKFURT THEY HAVE TO LOWER BY TWO OR THREE FULL PERCENTAGE POINTS VERY SOON TO DO SOME GOOD BUT IT IS HIGHLY UNLIKELY THAT THEY WILL SOME PRIVATESECTOR ECONOMISTS BELIEVE THE EC WILL BE LUCKY TO SHOW ZERO GROWTH TRADERS WERE EXPECTING NEW DEVALUATION PRESSURE ON THE FRENCH FRANC WITH THE FIRST STAGE OF FRANCE'S PARLIAMENTARY ELECTIONS THIS WEEKEND SAYS FRANCOISXAVIER CHAUCHAT A MARKET ECONOMIST AT BANQUE INDOSUEZ IN PARIS FROM WHAT WE'VE SEEN YESTERDAY PRESSURE ON THE FRENCH FRANC WILL CONTINUE UNTIL WE SEE LOWER GERMAN INTEREST RATES AND A COMMITMENT FROM THE NEW FRENCH GOVERNMENT AND GERMANY TO TIGHTER MONETARY COOPERATION TO RESTORE CONFIDENCE IN THE EMS THE STUBBORNLY INDEPENDENT BUNDESBANK IS LEERY OF EVEN THE APPEARANCE THAT IT IS BOWING TO POLITICAL PRESSURE AS IT EASES MONETARY POLICY BUT THERE ARE SIGNS THAT THE BUNDESBANK'S FIGHT AGAINST INFLATION IS BEARING FRUIT AND SO SOME REDUCTION OF INTEREST RATES WOULD SEEM JUSTIFIED ESPECIALLY CONSIDERING THE SAGGING STATE OF GERMANY'S OWN ECONOMY WESTERN GERMANY'S ECONOMY COULD CONTRACT 1 TO 15 THIS YEAR ACCORDING TO MANY ESTIMATES WAGE INCREASES IN MAJOR GERMAN INDUSTRIES THIS YEAR HAVE BEEN COMING IN AT WELL UNDER CURRENT ANNUAL INFLATION OF 42 SATISFYING ONE OF THE BUNDESBANK'S KEY CONDITIONS TO LOWER INTEREST RATES INFLATION IS WIDELY PREDICTED TO EASE UNDER 4 IN THE NEXT FEW MONTHS AS THE ECONOMY WALLOWS IN A SPREADING RECESSION GROWTH IN THE BUNDESBANK'S M3 BROADLY DEFINED MONEY SUPPLY A KEY INDICATOR OF FUTURE INFLATION TRENDS HAS PRACTICALLY EVAPORATED SINCE LAST YEAR FISCAL POLICY REMAINS A PROBLEM CHANCELLOR HELMUT KOHL FAILED LAST WEEK TO GET THE POLITICAL CONSENSUS HE NEEDED TO SIGNIFICANTLY CONSOLIDATE GERMANY'S UNRULY POSTUNITY FINANCES INSTEAD A COMPROMISE WITH OPPOSITION PARTIES AND STATE GOVERNMENTS REALLOCATED UNITY FUNDING AND DELAYED MAJOR TAX INCREASES UNTIL 1995 ECONOMISTS' POST MORTEMS DECRIED THE LACK OF REAL BUDGETARY SAVINGS TO CONTAIN DEFICIT SPENDING THE BUNDESBANK'S PRIME CONCERN BUNDESBANK OFFICIALS CALLED THE AGREEMENT A STEP IN THE RIGHT DIRECTION BUT LITTLE MORE 9303190162 930319 ITALIAN AUTO SALES SEEN FALLING GENOVA ITALY ITALIAN AUTOMOBILE SALES ARE LIKELY TO FALL TO AROUND TWO MILLION UNITS IN 1993 SAID PAOLO CANTARELLA MANAGING DIRECTOR OF AUTO MAKER FIAT AUTO IN THE WHOLE OF EUROPE CAR SALES COULD FALL BY ONE MILLION UNITS FROM 1992 HE ADDED THE FIGURES FOR THE FIRST TWO MONTHS OF THIS YEAR ARE VERY BAD MR CANTARELLA SAID AT A PRESENTATION OF FIAT'S NEW LANCIA DELTA MODEL LATEST FIGURES FROM ITALY'S NATIONAL ASSOCIATION OF CAR MANUFACTURERS SAID EUROPEAN CAR SALES FELL 17 IN FEBRUARY FROM A YEAR EARLIER TO 490000 WHILE IN ITALY CAR SALES FELL 14 TO 193118 DURING THE MONTH MR CANTARELLA'S PREDICTION OF A FALL IN ITALIAN CAR SALES FOR THE YEAR TO TWO MILLION WOULD REPRESENT A DROP OF 16 FROM 1992'S RECORD OF 2380000 BUT HE ADDED THAT THE EXPERTS FORECAST THAT IN 1994 THERE WILL BE A RECOVERY FIAT AUTO IS THE CAR MANUFACTURING SUBSIDIARY OF FIAT SPA ITALY'S LEADING AUTOMOTIVE GROUP 9303190161 930319 DIVIDEND NEWS WARNER INSURANCE SERVICES INC WARNER INSURANCE SERVICES INC FAIR LAWN NJ DECLARED A 5FOR4 STOCK SPLIT AND ITS FIRST QUARTERLY CASH DIVIDEND OF ONE CENT PER SHARE AFTER THE SPLIT THE STOCK SPLIT AND CASH DIVIDEND WILL BE PAYABLE MAY 5 TO STOCK OF RECORD APRIL 23 WARNER A PROVIDER OF INSURANCE PROCESSING SERVICES HAD 75 MILLION SHARES OUTSTANDING ON JAN 31 9303190160 930319 AMERICAN EXPRESS SHOWS GAINS NEW YORK AMERICAN EXPRESS CO SAID ITS CORPORATECARD PROGRAM POSTED STRONG YEAREND RESULTS AS TOTAL SPENDING ON THE CARD ROSE 98 IN 1992 THE COMPANY SAID AVERAGE SPENDING PER CARD ROSE 6 IN 1992 FROM 1991 IN ADDITION MORE THAN 150 LARGE COMPANIES OF OVER 1000 EMPLOYEES AND MORE THAN 1200 MIDSIZE COMPANIES JOINED THE PROGRAM IN 1992 9303190158 930319 HUTCHISON WHAMPOA POSTS '92 PROFIT DROP BEFORE SPECIAL ITEMS HONG KONG HUTCHISON WHAMPOA LTD'S MILD 48 DECLINE IN 1992 NET PROFIT BEFORE EXTRAORDINARY ITEMS GOT A CHEER FROM ANALYSTS WHO HAD WORRIED THAT A FIRSTHALF LOSS SIGNALED EVEN WORSE RESULTS FOR THE FULL YEAR REVENUE HOWEVER WAS REPORTED UP 94 TO HK2103 BILLION FROM HK1921 BILLION IN 1991 THE COMPANY DECLARED A DIVIDEND PAYOUT OF 55 HONG KONG CENTS DOWN 19 FROM 68 CENTS WITH THE BITTER TASTE OF HUTCHISON'S FIRST INTERIM LOSS IN MORE THAN A DECADE STILL APPARENT CHAIRMAN LI KASHING MADE NO SECRET THAT HUTCHISON AND FLAGSHIP CHEUNG KONG HOLDINGS LTD WILL SCALE BACK THEIR OVERSEAS INVESTMENTS LOOKING INSTEAD TO OPPORTUNITIES IN CHINA HUTCHISON STOCK HAS BEEN UNDERPERFORMING THE MARKET DUE TO ITS EXPOSURE TO HUSKY OIL LTD A CANADIAN INVESTMENT THAT PROMPTED A HK142 BILLION WRITEDOWN AND THE INTERIM LOSS OF HK78 MILLION AND ITS UNPROFITABLE UK TELECOMMUNICATIONS OPERATIONS WHILE ANALYSTS SAID THE HUTCHISON RESULTS SUGGEST IMPROVEMENTS IN THE GROUP MR LI'S VEILED REPORTING LEFT THEM GUESSING ABOUT WHERE THE TURNAROUND CAME IT'S VERY ENCOURAGING BUT THE COMPANY DOESN'T DISCLOSE MUCH DETAIL ACCORDING TO PHILLIP CHAN RESEARCH DIRECTOR OF PBI SECURITIES LTD IN A MEETING WITH REPORTERS MR LI CONCEDED CONTINUED LOSSES IN THE UK TELECOMMUNICATIONS OPERATIONS WHICH HE EXPECTS WILL CONTINUE THIS YEAR AND WHICH OFFSET STRENGTH IN RELATED HONG KONG OPERATIONS IN 1992 THE CHAIRMAN DIDN'T SAY WHETHER LOSSES IN THE UK NARROWED FROM 1991 9303190157 930319 DRECO RUSSIAN RIG CONTRACT EDMONTON ALBERTA DRECO ENERGY SERVICES LTD SAID IT AGREED TO SUPPLY TWO RUSSIAN COMPANIES WITH A TOTAL OF 20 WORKOVER RIGS IN A CONTRACT VALUED AT 131 MILLION US THE COMPANY DECLINED TO IDENTIFY THE PURCHASERS OF THE RIGS WHICH ARE DESIGNED TO STIMULATE ADDITIONAL OIL AND GAS PRODUCTION FROM EXISTING WELLS DRECO SAID THE RIGS TO BE DELIVERED BY OCTOBER WILL BE USED IN THE UGANSK AND PERM REGIONS OF WESTERN SIBERIA DRECO IS AN EDMONTONBASED MANUFACTURER OF DRILLING RIGS AND RELATED EQUIPMENT WHICH ALSO LEASES SUCH EQUIPMENT AND SERVICES OIL AND GAS WELLS 9303190156 930319 INTERNATIONAL PRIVATIZATION PLAN REJECTED BY POLISH BODY BY DANIEL MICHAELS SPECIAL TO THE WALL STREET JOURNAL WARSAW POLAND IN AN UNEXPECTED AND POLITICALLY DAMAGING MOVE POLAND'S PARLIAMENT REJECTED THE GOVERNMENT'S PROPOSED MASS PRIVATIZATION PLAN THE 203181 VOTE WAS A MAJOR SETBACK FOR PRIME MINISTER HANNA SUCHOCKA AND THE MARKETORIENTED REFORMS OF HER LIBERAL ALLIES REJECTION OF A PLAN TO PUT 600 STATE ENTERPRISES IN PRIVATE HANDS ALSO COULD UNDERMINE POLAND'S IMPROVING STATURE WITH INTERNATIONAL LENDING INSTITUTIONS AND WITH FOREIGN INVESTORS WHOSE RANKS HAVE SWELLED RECENTLY THE VOTE IS A STEP BACK ON REFORM SAID THE PRIME MINISTER'S SPOKESMAN ZDOBYSLAW MILEWSKI IT IS AGAINST THE POSITION OF THE GOVERNMENT AND THE COALITION BUT ALSO THE EXPECTATIONS OF THE PEOPLE OPINION POLLS INDICATE QUITE CLEARLY SOCIETY'S SUPPORT FOR MASS PRIVATIZATION THE INTERNATIONAL MONETARY FUND HAS LISTED THE PRIVATIZATION PROGRAM AS A PREREQUISITE FOR CONTINUED COOPERATION THE POLISH MASSPRIVATIZATION PLAN WOULD HAVE JOINED SEVERAL OTHER FORMS OF PRIVATIZATION ALREADY PERMITTED IN THE COUNTRY IT CALLED FOR CREATION OF A DOZEN OR MORE MUTUAL FUNDS EACH RESPONSIBLE FOR RESTRUCTURING AND SELLING TO THE PUBLIC A SELECT GROUP OF STATE COMPANIES FOR A SMALL PAYMENT EVERY POLE WOULD HAVE RECEIVED SHARES IN THE FUNDS BUT CONSERVATIVE NATIONALISTS IN THE GOVERNMENT COALITION OBJECTED TO THE APPOINTMENT OF WESTERN INVESTMENT BANKS TO MANAGE THE FUNDS THE PLAN'S PROPONENTS HAD ARGUED THAT WESTERN EXPERTISE WOULD MAKE MASS PRIVATIZATION MUCH MORE THAN A SIMPLE TRANSFER OF ASSETS THE GOVERNMENT ACCEPTED AN AMENDMENT EXCLUDING WESTERNERS FROM THE FUNDS' MANAGEMENT BOARDS BUT IT WASN'T ENOUGH YESTERDAY TO OVERCOME THE OBJECTIONS PRIVATIZATION OF STATEOWNED ENTERPRISES HAS GONE MUCH SLOWER THAN HOPED WHILE THE PLAN THAT FAILED YESTERDAY COULD BE MODIFIED AND REINTRODUCED ITS POTENTIAL FOR QUICK SUCCESS REMAINS DOUBTFUL IT'S BACK TO THE DRAWING BOARD SAID AN ADVISER IN THE MINISTRY OF PRIVATIZATION WHICH CREATED THE DEFEATED PLAN WHAT THE VOTE MEANS FOR THE COALITION'S FUTURE AND BROAD PRIVATIZATION IN POLAND REMAINS UNCLEAR THE LEADERSHIP'S LIBERAL CENTER HAS FOCUSED ITS EFFORTS ON ACHIEVING BOLD ECONOMIC REFORM AND THE DEFEAT SERIOUSLY UNDERMINES ITS POSITION THIS VOTE WAS A TEST THE GOVERNMENT FAILED SAID PAWEL WUJEC WHO HAS FOLLOWED TWO YEARS OF DISCUSSION ON THE PLAN FOR THE DAILY GAZETA WYBORCZA 9303190155 930319 DATA SWITCH CREATES ITALIAN UNIT SHELTON CONN DATA SWITCH CORP SAID IT ESTABLISHED A NEW UNIT CALLED DATA SWITCH ITALIA SRL TO BE BASED IN ROME THE DATA PROCESSING MANAGEMENT SYSTEMS COMPANY SAID THE UNIT WILL OFFER A RANGE OF SALES MARKETING INSTALLATION AND MAINTENANCE SERVICES PIERLUIGI SANDONA WILL BE MANAGING DIRECTOR OF THE UNIT DATA SWITCH SAID THIS IS ITS THIRD EUROPEAN UNIT IT ALSO HAS BRITISH AND GERMAN UNITS IT DERIVES 20 OF ITS REVENUE FROM EUROPE REVENUE IN 1992 WAS 84 MILLION 9303190154 930319 LEISURE & ARTS THEATER DARK LAUGHTER BY MELANIE KIRKPATRICK NEW YORK THERE USED TO BE TWO KINDS OF SHOWS IN TOWN A LOCAL PRODUCER QUIPPED RECENTLY MUSICALS AND STRAIGHT PLAYS NOW THERE ARE THREE MUSICALS STRAIGHT PLAYS AND GAY PLAYS PLAYS WITH GAY THEMES ARE NOTHING NEW OF COURSE NOR DO THEY LACK FOR AUDIENCES IN A CITY THAT HAS JUST PASSED A DOMESTICPARTNER LAW AND WHOSE BOARD OF EDUCATION HAS PUT HEATHER HAS TWO MOMMIES AND DADDY'S ROOMMATE ON THE READING LIST FOR FIRSTGRADERS A DECADE AGO LA CAGE AUX FOLLES REIGNED ON BROADWAY AND TORCH SONG TRILOGY WAS CELEBRATED OFFBROADWAY SINCE THEN THE ONSLAUGHT OF AIDS HAS INSPIRED DOZENS OF PLAYS BY SUCH FINE WRITERS AS RICHARD GREENBERG TERENCE MCNALLY PAULA VOGEL AND LARRY KRAMER WHILE MOST HAVE BEEN UNSUCCESSFUL GOOEY WITH SENTIMENT THEY HAVE BEEN HONEST ATTEMPTS TO GIVE VOICE TO THE TRAGEDY OF AIDS THIS SEASON THE MOST EAGERLY AWAITED SHOW ON BROADWAY IS PART I OF TONY KUSHNER'S GAY FANTASY ANGELS IN AMERICA OFFBROADWAY THE HOTTEST TICKET IS JEFFREY MINETTA LANE THEATRE BY PAUL RUDNICK BREAKING WITH THE SOMBER TRADITION OF AIDS PLAYS JEFFREY IS A ROLLICKING RIBALD COMEDY ABOUT A GAY MAN WHO IS TRYING TO GIVE UP SEX EVEN WITH AIDS LURKING IN THE BACKGROUND JEFFREY SPARKLES AS COMEDY IT'S A HUGE SUCCESS IT'S WHEN IT GETS SERIOUS THAT IT FAILS I WILL FIND A SUBSTITUTE FOR SEX JEFFREY ANNOUNCES AT THE START OF THE PLAY SEXLITE SEX HELPER I CAN'T BELIEVE IT'S NOT SEX THE CONVENTIONS OF COMEDY BEING WHAT THEY ARE TEMPTATION IS THROWN IN HIS PATH IN THE GUISE OF A HUNK FROM THE GYM NAMED STEVE THE PLOT PROGRESSES ALONG CLASSIC BOYMEETSBOY BOYGETSBOY LINES ALONG THE WAY MR RUDNICK INTRODUCES A STRING OF DELICIOUS CHARACTERS MOST ESPECIALLY EDWARD HIBBERT AS JEFFREY'S SWISH WORLDWEARY CONFIDANTE STERLING AS DARIUS A PRETTY EMPTYHEADED ACTOR WHO LIKES TO PRANCE AROUND IN HIS CATS COSTUME BRYAN BATT PROVES THAT BIMBO CAN BE A GENDERFREE APPELLATION THE CAST IS COMPLETED WITH THREE VERSATILE ACTORS AND ONE ACTRESS WHO EACH PLAY A HALFDOZEN ROLES AMONG THEM ARE A LASCIVIOUS PRIEST AN ITALIAN GUY WHO THINKS HE'S A LESBIAN AND AN APPARITION OF MOTHER TERESA IT'S EITHER MOTHER TERESA OR A TRULY PERVERSE DRAG QUEEN UNDER THE SPIRITED DIRECTION OF CHRISTOPHER ASHLEY JEFFREY FROLICS MERRILY FROM ONE SCENE TO THE NEXT JUST AS DAVID COPPERFIELD SEEMS BORING IN COMPARISON WITH THE COMIC GENIUS OF MR MICAWBER AUNT BETSEY TROTWOOD AND PEGGOTTY THE EPONYMOUS JEFFREY IS THE UNINTERESTING FOIL FOR MR RUDNICK'S SUPPORTING CAST OF MIXED NUTS AS PLAYED BY JOHN MICHAEL HIGGINS THERE'S MORE THAN A TOUCH OF SELFPITY AND MOROSENESS ABOUT HIM HIS JOB IS TO MOON AROUND THE STAGE AND LET OTHERS MAKE CRACKS AT HIS EXPENSE LIGHTEN UP SOMEONE TELLS HIM REMEMBER EVEN BRECHT WROTE MUSICALS WOULDBE BOYFRIEND STEVE TOM HEWITT IS LIKEWISE LACKLUSTER JUST ANOTHER WELLTUNED BODY TURNED OUT BY A HEALTH CLUB WHO COULD BE PLAYED BY ANY MAN WITH DECENT PECS FOR THE OTHER CHARACTERS MR RUDNICK WHOSE LAST SHOW WAS THE BROADWAY HIT I HATE HAMLET HAS COME UP WITH SOME OF THE FUNNIEST LINES AND DEFTEST GIMMICKS ONSTAGE TODAY THE MOST HILARIOUS IS A SKETCH LED BY A SOCIETY MATRON IN COWGIRL DRESS WHO IS HOSTING A COUNTRYWESTERN FUNDRAISER AT THE WALDORF LOOKING LIKE BARBARA BUSH IN AN ANNIE OAKLEY COSTUME SHE GUSHES ABOUT HER HOEDOWN FOR AIDS MR RUDNICK IS ALSO A MASTER OF ONELINERS STERLING IDENTIFIES HIS LIVEIN BOYFRIEND AS A WONDERFUL PET WHO CAN FEED AND WALK ITSELF AND IN ONE OF THE FEW GOOD LINES ALLOTTED HIS HERO MR RUDNICK HAS JEFFREY DESCRIBE HIS JOB AS A WAITER FOR A CATERING COMPANY AS LIKE BEING IN THE GAY NATIONAL GUARD NO ONE WORRIED ABOUT THE QUEER HUMOR IN JEFFREY BECAUSE MR RUDNICK SO CLEARLY SPEAKS TO A DIFFERENT AUDIENCE HE MIGHT QUIP THAT HE'S PREACHING TO THE PERVERTED JEFFREY IS AN EXTREMELY FUNNY PLAY BUT IT'S ALSO A DISQUIETING ONE FOR BEHIND THE HILARITY IS A PROFOUNDLY DISTURBING EXPRESSION OF CONTEMPORARY VALUES AT ONE LEVEL JEFFREY IS A GLORIFICATION OF PREAIDS DAYS WHEN BATHHOUSE BECAME FUNHOUSE IN THE PLAY'S MORAL UNIVERSE EVERYONE WORSHIPS AT THE ALTAR OF EROS HETEROSEXUAL PARISHIONERS OUTNUMBER HOMOSEXUAL PARISHIONERS AT THIS CHURCH OF COURSE JEFFREY DOES NOT QUESTION THAT ETHOS INSTEAD IT MOURNS ITS DECLINE BUT THE PLAY CONTAINS AN EVEN MORE DISQUIETING MESSAGE THIS SCREWBALL COMEDY IS BASED ON THE EXTREMELY UNFUNNY PREMISE THAT STEVE IS HIVPOSITIVE IN PURSUING JEFFREY NOT A MAN HE KNOWS AND LOVES MIND YOU BUT ONLY SOMEONE HE HAS OGLED AT THE GYM ONCE OR TWICE STEVE IS ASKING JEFFREY TO RISK HIS LIFE THERE IS NEVER ANY SUGGESTION THAT STEVE IS SELFISH OR TO USE AN UNFASHIONABLE WORD WRONG TO ASK ANYONE TO TAKE SUCH A RISK NOR IS THERE ANY SUGGESTION THAT STEVE AND JEFFREY MIGHT BECOME FRIENDS NOT LOVERS SEX IS APPARENTLY THE ONLY REAL WAY FOR THEM TO CONNECT MR RUDNICK WOULD HAVE US BELIEVE THAT JEFFREY NOT STEVE IS THE ONE WITH THE MORAL DILEMMA FIGHT AIDS NOT LIFE HE HAS A CHARACTER TELL A WAVERING JEFFREY JEFFREY'S DECISION TO EMBRACE STEVE IS PRESENTED AS AN ACT OF MORAL COURAGE IN 1842 ALEXANDRE DUMAS WROTE A PLAY WITH A PLOT LIKE JEFFREY'S ABOUT A SIMILAR MORAL AND SOCIAL PROBLEM THE HEROINE OF LA DAME AUX CAMELIAS IS A PROSTITUTE DYING OF TUBERCULOSIS THE MAN SHE LOVES WOULD BE OSTRACIZED IF THEIR LOVE WERE KNOWN AND SO SHE PRETENDS SHE NO LONGER LOVES HIM AND SENDS HIM AWAY THE IMAGE OF THIS DYING WOMAN COUGHING AWAY HER LIFE SURROUNDED BY FLOWERS BECAME A LASTING ICON OF ROMANTIC SELFSACRIFICE FOR LOVE AND THE MORAL GOOD ANYONE WHO HAS SEEN THE DUMAS PLAY WATCHED GRETA GARBO PLAY THE DEATHBED SCENE IN THE FILM ADAPTATION CAMILLE OR HEARD VERDI'S OPERATIC VERSION LA TRAVIATA HAS SEEN HOW THREE GENIUSES OF THEATER DEALT WITH THE TRAGIC GRANDEUR OF A WOMAN WHO PUTS THE LIFE OF SOMEONE SHE LOVES ABOVE THAT OF HER OWN BUT IN JEFFREY MR RUDNICK PLAYS IT JUST FOR LAUGHS AND SELFINDULGENCE 9303190153 930319 SCHRODERS POSTS RECORD EARNINGS FOR LAST YEAR POSITION AS ONE OF MOST SUCCESSFUL MERCHANT BANKS IN UK AFFIRMED BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WITH RECORD PROFIT IN 1992 FOR THE SECOND YEAR RUNNING SCHRODERS PLC IS CONFIRMING ITS POSITION AS ONE OF BRITAIN'S MOST SUCCESSFUL MERCHANT BANKS HOWEVER WIN BISCHOFF SCHRODERS'S CHIEF EXECUTIVE IS FAR FROM COMPLACENT ABOUT THE PROSPECTS FOR CONTINUING THIS WINNING STREAK I'M NOT RELAXED THE 51YEAROLD BANKER INSISTS IN AN INTERVIEW WE HAVE GOT A VERY GOOD BASE BUT HOW TAKING THINGS FORWARD CAN WE BE SURE THAT WE WILL CONTINUE TO DO WELL ONE OF HIS CONCERNS IS THE DIFFICULTY OF WINNING BUSINESS IN CONTINENTAL EUROPE IT'S JUST ON OUR DOORSTEP BUT WE'RE FINDING IT MORE DIFFICULT THAN MARKETS THAT ARE 6000 MILES AWAY ANOTHER IS THE RISK THAT WITH RAPID EXPANSION SCHRODERS WILL LOSE ITS AGILITY IT'S A GREAT DILEMMA MR BISCHOFF CONFESSES IT WAS FUN BEING SMALL THE DIFFICULTY IF YOU ARE SUCCESSFUL IS AVOIDING GROWING TOO MUCH WE TRY TO STAY FLEXIBLE BUT IF YOU TAKE ON MORE BUSINESS YOU HAVE TO HAVE MORE PEOPLE SO FAR JUDGING BY PUBLISHED FIGURES SCHRODERS SEEMS TO BE GETTING THINGS ABOUT RIGHT IN KEEPING WITH A TRADITION OF SECRECY THE BANK 44OWNED BY THE SCHRODER FAMILY DOESN'T MAKE IT EASY FOR OUTSIDERS TO KEEP TABS ON ITS PERFORMANCE IT PUBLISHES ONLY PARTIAL DETAILS OF ITS EARNINGS BECAUSE ACCOUNTING RULES ENABLE IT UNTIL NEXT YEAR TO SET ASIDE PART OF ITS PROFITS TO HIDDEN RESERVES IN 1992 HOWEVER DISCLOSED PROFIT INDICATES SCHRODER HAD A PARTICULARLY FAVORABLE YEAR THANKS TO A COMBINATION OF TRADING PROFIT IN UNUSUALLY VOLATILE MARKETS INCREASED EARNINGS FROM ITS INVESTMENTMANAGEMENT ARM AND THE IMPACT OF STERLING'S DEPRECIATION WHICH INFLATED THE FOREIGNCURRENCY COMPONENT OF ITS PROFIT DISCLOSED NET PROFIT ROSE BY 23 TO 64 MILLION 93 MILLION FROM 521 MILLION DISCLOSED EQUITY ROSE 28 TO 462 MILLION REFLECTING BOTH THE IMPACT OF STERLING'S DEPRECIATION ON THE CAPITAL OF FOREIGN SUBSIDIARIES AND DISCLOSED RETENTION OF EARNINGS IN ADDITION THE BANK RAISED ITS DIVIDEND BY 22 SCHRODERS SHARES ROSE SHARPLY ON THE LONDON STOCK EXCHANGE ON THE NEWS CLOSING AT 1890 THE PROFIT INCREASE WAS IN MARKED CONTRAST WITH OTHER BRITISH MERCHANT BANKS WHERE EARNINGS WEAKENED LAST YEAR SCHRODERS'S MAIN UK COMPETITOR SG WARBURG GROUP PLC FOR EXAMPLE IS EXPECTED TO SHOW A DECLINE IN ITS EARNINGS FOR THE YEAR ENDING MARCH 31 SCHRODERS IS ONE OF THE HIGHEST QUALITY PLAYERS IN THE UK INVESTMENT BANKING MARKET COMMENTED ALISON DEUCHARS AN ANALYST AT LEHMAN BROS INTERNATIONAL GIVEN THE PAUCITY OF PUBLIC INFORMATION PROVIDED BY SCHRODERS HOWEVER IT'S HARD TO KNOW JUST WHERE THE BANK IS HEADING YOU PRACTICALLY HAVE TO TAKE WHAT THEY TELL YOU ON TRUST REMARKED AN ANALYST AT ANOTHER LEADING UK MERCHANT BANK WHO ASKED NOT TO BE IDENTIFIED FOUNDED IN 1804 SCHRODERS IS ONE OF BRITAIN'S LEADING INVESTMENT BANKS ALONG WITH WARBURG AND MORGAN GRENFELL A SUBSIDIARY OF DEUTSCHE BANK IN TERMS OF PAYROLL SCHRODERS WITH AROUND 3600 EMPLOYEES IS STILL BEHIND WARBURG WHICH EMPLOYS ABOUT 5000 WORLDWIDE BUT SCHRODERS IS CREEPING UP IN 1992 IT ADDED AROUND 220 TO ITS PAYROLL AND FURTHER HIRINGS ARE EXPECTED IN 1993 IN 1992 MR BISCHOFF SAID SCHRODERS WAS HELPED BY THE BROAD GEOGRAPHIC SPREAD OF ITS BUSINESS WEAK ECONOMIC CONDITIONS HAD A DAMPENING EFFECT ON BUSINESS IN BRITAIN FOR THE SECOND YEAR RUNNING SCHRODERS HAD TO MAKE PROVISIONS FOR BAD LOANS EQUIVALENT TO SLIGHTLY MORE THAN 1 OF ITS 10 BILLION LOAN PORTFOLIO ON THE INVESTMENT MANAGEMENT SIDE HOWEVER WORLDWIDE FUNDS UNDER MANAGEMENT INCREASED BY 30 IN THE US WERTHEIM SCHRODER THE BANK'S JOINT VENTURE WITH PARTNERS OF THE FORMER WALL STREET INVESTMENT BANK WERTHEIM HAD A SUCCESSFUL YEAR IN EQUITIES IN ASIA TRADING CONDITIONS WERE DIFFICULT IN JAPAN BUT BUOYANT IN OTHER ASIAN MARKETS IN A SLACK YEAR FOR MERGERS AND ACQUISITIONS BUSINESS WORLDWIDE SCHRODERS WON A LUCRATIVE CONTRACT AS ADVISER TO HSBC HOLDINGS PLC IN ITS ACQUISITION OF BRITAIN'S MIDLAND BANK OVERALL SCHRODERS WAS INVOLVED IN 99 MERGERS AND ACQUISITIONS TRANSACTIONS FOR A TOTAL VALUE OF 8 BILLION WHILE BOTH THE US AND ASIA CONTINUE TO OFFER OPPORTUNITIES CONTINENTAL EUROPE HAS PROVED DISAPPOINTING IN PART THAT WAS DUE TO THE GENERALIZED SLOWDOWN IN EUROPEAN ECONOMIES BUT IT ALSO REFLECTED THE DIFFICULTY MR BISCHOFF SAID OF BREAKING INTO DOMESTIC MARKETS OF OTHER EUROPEAN COUNTRIES IN ADDITION TO THE CONSERVATIVE ATTITUDE OF MANY CONTINENTAL EUROPEAN FIRMS BANKS SUCH AS SCHRODERS MUST STILL CONTEND WITH COMPANIES' STRONG LOYALTY TO THEIR LOCAL BANKING PARTNERS 9303190152 930319 FINANCING BUSINESS PACIFIC PHYSICIAN SERVICES INC PACIFIC PHYSICIAN SERVICES INC REDLANDS CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 22 MILLION SHARES OF WHICH 652143 ARE TO BE SOLD BY HOLDERS AND THE REST BY THE COMPANY A HEALTHCARE MANAGEMENT CONCERN FURMAN SELZ INC AND LEHMAN BROTHERS WILL SERVE AS UNDERWRITERS NET PROCEEDS WILL BE USED BY THE COMPANY FOR GENERAL PURPOSES 9303190151 930301 LETTERS TO THE EDITOR ATTENTIONDEFICIT DISORDER MYTHOLOGY YOUR JAN 11 ARTICLE ATTENTIONDEFICIT DISORDER AFFECTS ADULTS BUT SOME DOCTORS QUESTION HOW WIDELY PERPETUATES MUCH OF THE MYTHOLOGY OF THIS DEBATABLE PSYCHIATRIC DISEASE OR DISORDER ATTENTIONDEFICIT DISORDER ADD IS NO MORE A DISEASE THAN IS EXCITABILITY IT IS A PSYCHIATRIC PSEUDOMEDICAL TERM IN FACT UNDER THE PAST AND CURRENT AMERICAN PSYCHIATRIC ASSOCIATION DIAGNOSTIC CRITERIA FOR ADD THERE IS NO MENTION OF MEDICAL CRITERIA INSTEAD ARE FOUND VAGUE AND SUBJECTIVE CRITERIA THAT HAVE ALWAYS BEEN THE HALLMARKS OF THIS PSEUDOMEDICAL CONCEPT THE CRITERIA FOR DIAGNOSING ADD INCLUDE SUCH MEASURES AS OFTEN TALKS EXCESSIVELY AND HAS DIFFICULTY AWAITING TURN IN GAMES OR GROUP SITUATIONS MOREOVER A CRITERION FOR ADD IS MET ONLY IF THE BEHAVIOR IN QUESTION IS CONSIDERABLY MORE FREQUENT THAN THAT OF MOST PEOPLE OF THE SAME MENTAL AGE THE UPSHOT IS THAT ALMOST ANY NORMAL CHILD MIGHT BE AND MANY SUCH NORMAL CHILDREN ARE LABELED AS HYPERACTIVE AS ONE NEUROLOGIST PUTS IT THE MORE YOU STUDY HYPERACTIVITY OR ATTENTIONDEFICIT DISORDER THE LESS CERTAIN YOU ARE AS TO WHAT IT IS OR WHETHER IT IS A THOUSAND DIFFERENT MEDICAL AND NONMEDICAL SITUATIONS ALL CALLED BY THE SAME NAME AS IF IT WERE ONE THING CONTRARY TO YOUR ARTICLE'S ASSERTION THERE ARE NO LABORATORY TESTS FOR ADD AND NEUROLOGICAL TESTS ARE NEARLY IRRELEVANT EVEN THE AMERICAN PSYCHIATRIC ASSOCIATION'S APA OWN 1980 DIAGNOSTIC MANUAL CLAIMS NO MORE THAN 5 OF THOSE WHO MEET THE APA CRITERIA FOR ATTENTIONDEFICIT DISORDER HAVE A DIAGNOSABLE NEUROLOGICAL DISORDER A POINT UNACCOUNTABLY DROPPED FROM THE 1987 MANUAL REVISION BUT AS WITH MANY PSYCHIATRIC DISORDERS THERE IS THAT POTENTIAL FOR EXCUSING ANTISOCIAL AND/OR CRIMINAL BEHAVIOR YOUR STORY OF A DEFENDANT WHO SUCCESSFULLY AVOIDED DEPORTATION BY ARGUING THAT HIS DRUG ABUSE STEMMED FROM ADD IS JUST ONE MORE ILLUSTRATION OF THE UNJUSTIFIABLE AND LUDICROUS POWER OF PSYCHIATRIC EXCULPATION OF CRIMINAL ACTIVITY INTERESTINGLY ONE RESEARCHER JAMES H SATTERFIELD FOUND IN 1982 THAT NORMAL ELECTROENCEPHALOGRAMS IN HYPERACTIVES WERE MORE PREDICTIVE OF ARRESTS THAN ABNORMAL ELECTROENCEPHALOGRAMS IF THE DIAGNOSIS OF HYPERACTIVITY IS MEDICALLY MEANINGLESS ITS CONSEQUENCES CERTAINLY ARE NOT RITALIN THE THERAPY OF CHOICE FOR THIS DISEASE IS A SERIOUS AMPHETAMINELIKE CEREBRAL STIMULANT AND SOME HYPERACTIVES ARE PRESCRIBED DEXADRINE THE TYPE OF DRUG PARENTS KNOW AS SPEED WHEN THEY HEAR STORIES OF TEEN DRUG ABUSE THE MOST CONSERVATIVE ESTIMATES ARE THAT WELL OVER A MILLION CHILDREN AND AS YOUR ARTICLE POINTS OUT THIS IS BEING EXTENDED TO ADULTS ARE NOW RECEIVING RITALIN OR OTHER PSYCHOSTIMULANTS REGULARLY AN INCREASE OF MORE THAN TENFOLD OVER THE PAST 20 YEARS SOME OF THE NOTSORARE SIDE EFFECTS OF RITALIN INCLUDE HEADACHES INSOMNIA STUNTED GROWTH AND A VARIETY OF TICS INCLUDING A VERY SERIOUS FORM CALLED TOURETTE'S SYNDROME WHILE IT IS INDISPUTABLE THAT FOR MANY BUT BY NO MEANS ALL CHILDREN AND MAYBE SOME ADULTS RITALIN MAY PRODUCE A PARADOXICALLY CALMING EFFECT AND IMPROVE ATTENTION SPAN THE INFERENCE THAT THE DRUG IMPROVES ACADEMIC PERFORMANCE OR JOB PERFORMANCE IS SIMPLY UNDOCUMENTED THE ALLEGED PANDEMIC NATURE OF ADD LIKE ITS STATUS AS A NEUROLOGICAL DISEASE IS MEANINGLESS STUNNING ESTIMATES LIKE THE QUOTES IN YOUR ARTICLE FROM PSYCHOLOGIST EDNA COPELAND THAT 50 TO 60 OF ALCOHOLICS AND DRUG ADDICTS HAVE UNDERLYING ADD PROBLEMS AND THAT 60 TO 70 OF THE US PRISON POPULATION HAS UNDIAGNOSED ADD ARE WORTHLESS SINCE THERE IS NO WAY TO DISCONFIRM VAGUE PSYCHIATRIC DISORDERS LIKE ADD YOU COULD CLAIM VIRTUALLY ANY NUMBERS YOU WISH AS WITH ALL SOCIAL AND POLITICAL USES OF PSYCHIATRIC DISORDERS CLAIMS OF THE EXISTENCE AND EFFECTS OF DUBIOUS DISORDERS SUCH AS ADD NEED TO BE VIEWED WITH COMPLETE SKEPTICISM AND IN COURT WITH CONTEMPT PROF VATZ IS ASSOCIATE PSYCHOLOGY EDITOR OF USA TODAY MAGAZINE AN ACADEMIC MONTHLY SEE RELATED LETTERS LETTERS TO THE EDITOR ATTENTIONDEFICIT DISORDER IT'S REAL WSJ MARCH 18 1993 9303010110 9303190150 930319 PEPPERAND SALT IN A NEIGHBOR'S HOUSE OR OUR OWN 9303190149 930319 ALLIEDSIGNAL DEBT REDEMPTION MORRIS TOWNSHIP NJ ALLIEDSIGNAL INC SAID IT CALLED FOR REDEMPTION 63 MILLION OF DEBT OF ITS SIGNAL COS UNIT ALLIEDSIGNAL WILL REDEEM ALL 87 MILLION OF SIGNAL'S 5 7/8 DEBT DUE MARCH 15 1997 ON APRIL 20 IT WILL REDEEM ALL 539 MILLION OF SIGNAL'S 8 SUBORDINATED EXCHANGEABLE DEBT DUE JAN 15 2009 ON APRIL 22 9303190148 930319 WHO'S NEWS REID IS JOINING MORGAN STANLEY NEW YORK WILLIAM R REID THE MANAGING DIRECTOR IN CHARGE OF FIRST BOSTON CORP'S JUNK BOND DEPARTMENT RESIGNED TO JOIN MORGAN STANLEY GROUP INC MR REID 36 YEARS OLD COULDN'T BE REACHED FOR COMMENT BUT OFFICIALS AT MORGAN STANLEY SAID HE WAS NAMED A MANAGING DIRECTOR IN THE FINANCIAL ENTREPRENEURS GROUP WHERE HE WILL FOCUS ON JUNKBOND FINANCINGS AND RECAPITALIZATIONS MR REID JOINED FIRST BOSTON A UNIT OF CS FIRST BOSTON INC AS AN INVESTMENT BANKER IN 1980 AND MOVED TO THE JUNK BOND DEPARTMENT IN 1985 HE WAS NAMED A MANAGING DIRECTOR IN CHARGE OF HIGHYIELD BONDS IN 1988 9303190147 930319 WHO'S NEWS CADBURY SCHWEPPES PLC CADBURY SCHWEPPES PLC LONDON GRAHAM DAY CHAIRMAN OF THIS BRITISH FOOD GROUP WILL RETIRE AT THE ANNUAL MEETING MAY 5 MR DAY WHO WILL BE 60 YEARS OLD IN MAY WILL BE SUCCEEDED BY DOMINIC CADBURY WHO HAS BEEN CHIEF EXECUTIVE OFFICER SINCE 1984 DAVID WELLINGS CURRENTLY MANAGING DIRECTOR FOR THE GROUP'S CONFECTIONARY BUSINESS WAS NAMED CHIEF EXECUTIVE SUCCEEDING MR CADBURY 9303190146 930301 REVIEW & OUTLOOK EDITORIAL THE BIG BOOM THE BOMB THAT BLEW UP THE BASEMENT OF THE WORLD TRADE CENTER WENT OFF ACROSS THE STREET FROM THE WALL STREET JOURNAL FEW HERE WILL FORGET 1218 PM FRIDAY FEBRUARY 26 THE WALL STREET JOURNAL OCCUPIES THE LOWEST EIGHT FLOORS OF THE SOUTHERNMOST TOWER OF THE WORLD FINANCIAL CENTER MANY OF THE OFFICES HAVE LARGE PLATEGLASS WINDOWS FACING DIRECTLY ON THE TWIN TOWERS OCCASIONALLY GALEFORCE WINDS BLOW HARD OFF THE ATLANTIC AND UP THE MOUTH OF THE HUDSON RIVER BESIDE US AND OUR WINDOWS BUCKLE SLIGHTLY UNDER THE WIND'S FORCE BUT THERE REALLY ARE NO PRECISE WORDS TO DESCRIBE THE FORCE OF THAT BOMB ON FRIDAY MOMENTS BEFORE THE SHOCK HIT OUR BUILDING THE PHONE LINES WENT DEAD AND IN THE INSTANT THAT PEOPLE BEGAN TO MUTTER IN COMPLAINT THE BOOM ROCKED THE 43STORY FINANCIAL CENTER TOWER THE BUILDING MOVED ALL OF IT THE SOUND THE SHOCK WAVE THE FRIGHT LASTED ABOUT ONE SECOND THEN SILENCE NO ECHO NO SECOND EXPLOSION NO SCREAMS OR HONKING CAR HORNS AND FOR FIVE MINUTES THERE WAS NOTHING TO SEE THE SIDEWALK AND WEST STREET IN FRONT OF THE TRADE TOWERS LOOKED FINE ANXIOUS PEDESTRIANS KEPT LOOKING UPWARD FOR SOME SIGN AND TRAFFIC FLOWED IN BOTH DIRECTIONS THEN SOMEONE NOTICED BLACK SMOKE BEGINNING TO BILLOW IN A THIN PLUME FROM A VENT OVER THE BUNKERED ENTRANCE RAMP TO THE TRADE CENTER'S GARAGE EARLY ON THE INCIDENT WAS ATTENDED TO BY JUST TWO FIRE TRUCKS AND TWO POLICE CARS SOON REPORTEDLY 40 OF NEW YORK CITY'S FIREFIGHTING CAPACITY WAS IN THOSE STREETS WE LEARNED WHAT HAD HAPPENED THE WAY NEWSPAPER PEOPLE HAVE ALWAYS RECEIVED FIRST WORD OF EXTRAORDINARY EVENTS A REPORTER FOR A WIRE SERVICE HERE THE ASSOCIATED PRESS TRANSMITTED THE STORY'S KEY FACTS THERE HAD BEEN AN EXPLOSION IN THE WORLD TRADE CENTER NEW YORK IS NOT AN EASY CITY TO COMPREHEND IT SEEMS TO OFFER EVERYTHING ONE COULD WANT AND MUCH THAT NO ONE SHOULD EVER WANT THE SENSES AND MIND EXIST IN A STATE OF PERPETUAL OVERLOAD WHEN YOU STOP ENJOYING IT YOU LEAVE FOR THE WEEKEND OR FOREVER FOR DIFFERENT REASONS MOST EVERYONE STAYS FOR INSTANCE THERE IS A LOT MORE RUBBLE AND A LOT MORE DANGER ON THIS MONDAY MORNING IN MANY PARTS OF THE SOUTH BRONX THAN THERE IS AROUND THE WORLD TRADE CENTER AND IF A LARGER IDEOLOGICAL POINT IS PERMISSIBLE UNDER THESE STRAINED CIRCUMSTANCES THE PEOPLE WHO LIVE IN NEW YORK'S MOST IRREDEEMABLY DANGEROUS NEIGHBORHOODS MUST FIND BITTERLY IRONIC ALL OF THIS TALK FROM GOVERNOR CUOMO ON DOWN ABOUT MEASURES TO ENSURE SECURITY FROM TERRORISTS FOR ALL THAT THE WORLD TRADE CENTER BOMBING WHETHER AN ACT OF POLITICAL OR PERSONAL NEUROSIS ELICITED BEHAVIOR FROM NEW YORKERS THAT CAN ONLY BE DESCRIBED AS HEROIC AND NOBLE THE INSTINCT OF NEARLY ALL INVOLVED AND AMID THE TRAUMA IT COULD ONLY BE INSTINCT WAS IN OUR ERA'S MOST BURDENED PHRASE TO HELP OTHERS NO LOOTING NO PANIC NO BUM'S BRAVADO FOR THE CAMERAS HECK THE PORT AUTHORITY POLICE WHO TOOK THE BOMB'S BIGGEST HIT EVEN LET THEIR LONE PRISONER TAKE A HIKE HIS CRIME WASN'T SERIOUS THE AUTHORITIES WILL SORT THROUGH THE RUBBLE SEEKING PIECES THAT MAY REVEAL WHO DID IT IF WE FIND OUT THAT WILL BE A BIG AND HIGHLY DRAMATIZED STORY FOR NOW LET US RECOGNIZE THAT WHAT THIS TRAGEDY PRODUCED PRIMARILY FROM FIREMEN THE POLICE COWORKERS AND PASSERSBY WERE CONSTANT ACTS OF HUMAN GOODNESS IN OUR TIME AND ESPECIALLY IN THIS CITY THAT IS AN IMPORTANT AND USEFUL THING TO HAVE WITNESSED SEE RELATED LETTER LETTERS TO THE EDITOR DON'T FORGET WE RISK OUR LIVES FOR YOU WSJ MARCH 18 1993 9303010066 9303190145 930319 INTERNATIONAL BRITAIN RECORDS FIRST DROP IN JOBLESS RATE IN 3 YEARS LONDON AN UNEXPECTED FALL IN THE JOBLESS RATE THE FIRST IN THREE YEARS HAS GIVEN NEW SUPPORT TO HOPES THAT BRITAIN'S ECONOMY MAY BE ON THE MEND THE SEASONALLY ADJUSTED JOBLESS TOTAL FELL BY 22000 IN FEBRUARY TO 2971000 MANY ANALYSTS AND COMMENTATORS BRACING FOR AN INCREASE HAD EXPECTED THE FIGURE TO RISE ABOVE THREE MILLION FOR THE FIRST TIME IN SIX YEARS ECONOMISTS AGREE THAT ANY RECOVERY IN THE BRITISH ECONOMY REMAINS EXTREMELY FRAGILE AND THEY CAUTIONED THAT NOT TOO MUCH SHOULD BE READ INTO ONE MONTH'S WORTH OF STATISTICS NONETHELESS FURTHER SUPPORT FOR OPTIMISM CAME FROM FIGURES INDICATING SOME REVIVAL IN BRITAIN'S DEPRESSED HOUSING MARKET ACCORDING TO THE BUILDING SOCIETIES ASSOCIATION NET NEW COMMITMENTS BY ITS MEMBERS MEASURING THE AMOUNT OF FRESH MORTGAGE LENDING JUMPED 76 IN FEBRUARY TO 272 BILLION 395 BILLION MEANTIME BRITAIN'S TREASURY ISSUED A STATEMENT MAKING IT CLEAR THAT NEITHER THE LATEST ECONOMIC DATA NOR GERMANY'S INTERESTRATE CUT YESTERDAY WERE REGARDED AS REASON FOR ANY CHANGE IN INTERESTRATE LEVELS 9303190144 930319 MICHELIN ASKS MANAGERS TO ACCEPT CUTS IN PAY SPECIAL TO THE WALL STREET JOURNAL CLERMONTFERRAND FRANCE GROUPE MICHELIN SA EUROPE'S LEADING TIRE PRODUCER ASKED CERTAIN MANAGERS TO ACCEPT VOLUNTARY PAY CUTS IN MARCH AND APRIL MICHELIN SENT ITS MANAGERS A LETTER ASKING THEM TO MAKE A VOLUNTARY FINANCIAL CONTRIBUTION THAT WOULD INVOLVE REDUCING THEIR SALARIES BY 4 IN MARCH AND BY 65 IN APRIL THE MOVE FOLLOWS THE ANNOUNCEMENT BY MICHELIN THIS WEEK THAT IT PLANS TO SHUT DOWN PRODUCTION OPERATIONS AT ITS HEADQUARTERS IN CLERMONT FERRAND FOR EIGHT DAYS THROUGH THE END OF APRIL THE COMPANY IS ANXIOUS TO PREVENT STOCKS FROM BUILDING UP AND IS TRIMMING PRODUCTION TO MATCH DEPRESSED DEMAND FOR TIRES FROM THE AUTOMOBILE INDUSTRY AUTOMOBILE INDUSTRY ANALYSTS EXPECT EUROPEAN CAR SALES TO FALL BY AS MUCH AS 10 THIS YEAR SOURCES POINTED OUT HOWEVER THAT ABOUT 10 OF THE SUPERVISORY STAFF WILL HAVE TO REMAIN AT THEIR POSTS TO HANDLE ROUTINE ADMINISTRATIVE TASKS TO KEEP THE COMPUTER SYSTEM RUNNING AND TO GENERALLY KEEP THE OPERATION GOING DURING THE DOWN DAYS MICHELIN MANAGEMENT SAID IN ITS LETTER THAT BLUECOLLAR WORKERS WOULDN'T UNDERSTAND IF THEY ARE REQUIRED TO MAKE A SACRIFICE WHILE THE MANAGERS AREN'T AFFECTED 9303190143 930319 INITIAL JOBLESS CLAIMS FELL IN THE LATEST TWO WEEKS WASHINGTON AMERICANS FILED FEWER NEW CLAIMS FOR UNEMPLOYMENT BENEFITS IN THE TWO WEEKS ENDED MARCH 13 THE LABOR DEPARTMENT SAID THE DECLINES BY 10000 IN THE WEEK ENDED MARCH 13 AND 15000 IN THE WEEK ENDED MARCH 6 FOLLOWED THREE WEEKS OF INCREASES ANALYSTS SAID THE IMPROVEMENT IS MODEST HOWEVER AND SUGGESTS THAT THE STRONG LABORMARKET GROWTH IN FEBRUARY ISN'T LIKELY TO REPEAT ITSELF IN MARCH INITIAL CLAIMS IN THE LATEST WEEK TOTALED 351000 THE FOURWEEK AVERAGE OF CLAIMS WHICH IS CONSIDERED A BETTER MEASURE OF LABORMARKET HEALTH INCREASED 6500 TO 359750 IN THE LATEST WEEK STARTING WITH THIS WEEK'S REPORT THE LABOR DEPARTMENT IS REPORTING CLAIMS WITH A ONEWEEK TIME LAG INSTEAD OF THE USUAL TWO WEEKS THAT'S WHY THE LATEST REPORT INCLUDES DATA FROM BOTH THE MARCH 6 AND MARCH 13 WEEKS CALIFORNIA REPORTED A DECREASE IN CLAIMS IN THE LATEST WEEK BECAUSE OF FEWER LAYOFFS IN CONSTRUCTION FOOD PROCESSING AND AGRICULTURE ALABAMA AND ILLINOIS ALSO REPORTED FEWER LAYOFFS IN CONSTRUCTION AND MANUFACTURING ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9303190142 930319 MARKETING & MEDIA ABC GIVES STATIONS INCENTIVES TO AIR NIGHTLINE' LIVE BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE ABC NETWORK SENSING AN OPPORTUNITY TO DRAW MORE VIEWERS TO ITS LATENIGHT NIGHTLINE PROGRAM UNVEILED AN AGGRESSIVE INCENTIVE PLAN TO GET MORE STATIONS TO CARRY THE SHOW LIVE THE NEW PUSH COMES AS THE NEWS PROGRAM ANCHORED BY TED KOPPEL ENJOYS A RATINGS ROLL AND THE LATENIGHT LANDSCAPE APPROACHES A PERIOD OF RADICAL FLUX NBC'S LATENIGHT HOST DAVID LETTERMAN JUMPS TO CBS IN AUGUST TO HOST A NEW TALK SHOW AN HOUR EARLIER THAN HIS CURRENT 1235 AM NEW YORK PROGRAM AND NIGHTLINE MOVED AHEAD OF NBC'S TONIGHT SHOW IN THE FEBRUARY SWEEPS RATINGS RACE NIGHTLINE ACCOMPLISHED THAT FEAT DESPITE A HUGE HANDICAP IT IS SEEN LIVE IN ONLY 61 OF THE US WITH THE REST OF THE STATIONS AIRING IT LATER WHEN FEWER VIEWERS ARE AVAILABLE BY CONTRAST ALL NBC STATIONS THAT CARRY TONIGHT AIR IT IN THE EARLIER MORE FAVORABLE TIME SLOT NBC IS A UNIT OF GENERAL ELECTRIC CO TO BOOST THE SOCALLED LIVE CLEARANCES BY STATIONS ABC ON APRIL 5 WILL BEGIN AIRING NIGHTLINE AT 1135 PM EASTERN TIME GIVING STATIONS FIVE EXTRA MINUTES FOR LOCAL NEWS AND LOCAL AD TIME IN ADDITION STATIONS THAT AGREE TO CARRY NIGHTLINE LIVE WILL GET AN ADDITIONAL 3 1/2 MINUTES A WEEK OF AD TIME ON ABC NEWS PROGRAMS INCLUDING PRIMETIME LIVE AND 20/20 TIME THAT WOULD HAVE GONE TO PROMOTE THE NETWORK A UNIT OF CAPITAL CITIES/ABC INC NIGHTLINE WHICH HAS BROADENED ITS FORMAT IN THE PAST YEAR TO INCLUDE MORE INVESTIGATIVE PIECES AND MORE OUTOFTHESTUDIO REPORTING BY MR KOPPEL DREW 21 HIGHER RATINGS IN FEBRUARY THAN A YEAR EARLIER THAT WAS ENOUGH TO PUSH IT INTO FIRST PLACE FOR THE MONTH PAST THE TRADITIONAL LEADER FOR THE TIME SLOT NBC'S TONIGHT WHICH HAS BEEN HOSTED BY JAY LENO SINCE MAY 1992 BUT MANY ABC STATIONS DELAY NIGHTLINE TO AIR SYNDICATED FARE SUCH AS RERUNS OF CHEERS WHICH COST THEM MONEY BUT ULTIMATELY BRING IN MORE REVENUE BECAUSE STATIONS GET TO KEEP MORE OF THE AD TIME FOR LOCAL SALES THE DELAYED CLEARANCES BECAME SO TROUBLESOME LAST SPRING THAT MR KOPPEL ISSUED WHAT SOME SAW AS A VEILED THREAT TO AFFILIATES THAT HE MIGHT QUIT THE SHOW IF MORE STATIONS DIDN'T CARRY IT LIVE CLEARANCES HAVEN'T IMPROVED MUCH SINCE THEN BUT RATINGS HAVE SO THE NETWORK HOPES THAT THE ADDITIONAL AD TIME THAT IT IS OFFERING TO STATIONS ONE 30SECOND AD EACH NIGHT IN NIGHTLINE AND 30SECOND ADS IN THE WEEKLY PROGRAMS 20/20 AND PRIMETIME WILL PERSUADE STATIONS TO PUT NIGHTLINE FIRST 9303190141 930319 ECONOMY DEMOCRATS BACK BUDGET PLAN IN THE HOUSE CLINTON ECONOMIC PROGRAM WINS ON ROLLCALL VOTE GEPHARDT SEES NEW DAY BY JOHN HARWOOD AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON HOUSE DEMOCRATS EAGER TO DISPLAY THEIR CAPACITY TO GOVERN APPROVED THE BROAD OUTLINES OF PRESIDENT CLINTON'S PROGRAM TO REORDER THE NATION'S ECONOMIC PRIORITIES AFTER A DOZEN YEARS OF REPUBLICAN ADMINISTRATIONS FINAL HOUSE ACTION CAME ON AN 243183 ROLL CALL WITH ALL BUT 11 DEMOCRATS SUPPORTING THE WHITE HOUSE WE WANT A NEW DAY FOR THIS COUNTRY SAID MAJORITY LEADER RICHARD GEPHARDT RECALLING THE REPUBLICAN VICTORIES IN THE SAME CHAMBER UNDER RONALD REAGAN IN 1981 AND AFTER ROLLING UP A LOPSIDED 240185 WIN ON A CRUCIAL PROCEDURAL VOTE LAST NIGHT DEMOCRATS PRESSED TOWARD APPROVAL OF AN ACCOMPANYING 16 BILLIONPLUS SPENDING BILL REPRESENTING A DOWNPAYMENT ON THE PRESIDENT'S NEW DOMESTIC INITIATIVES BY COMBINING THE PROMISE OF 510 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS WITH SUBSTANTIAL INCREASES IN SPENDING PROGRAMS TO RETOOL THE ECONOMY THE BUDGET PROPOSAL PERMITTED TRADITIONAL LIBERALS AND FISCAL CONSERVATIVES ALIKE TO CLAIM THE PROSPECT OF CHANGE WITH A NEW DEMOCRATIC PRESIDENT WHOSE POLITICAL FATE IS ENTWINED WITH THEIR OWN WE HAVE A RESPONSIBILITY TO PRODUCE SAID SENIOR DEMOCRATIC REP LEE HAMILTON OF INDIANA WHO DESCRIBED THE DISPLAY OF PARTY COHESION AS UNMATCHED SINCE DEMOCRATS RALLIED BEHIND LYNDON JOHNSON'S GREAT SOCIETY PROGRAM IN HIS FIRST TERM NEARLY THREE DECADES AGO LOYAL HOUSE DEMOCRATS HAVE BEEN INVITED TO A BREAKFAST WITH THE PRESIDENT AT THE WHITE HOUSE THIS MORNING THIS UNIFIED SHOWING WAS CRUCIAL TO THE ADMINISTRATION WHOSE PROPOSAL IS UNDER SOME STRAIN IN THE MORE NARROWLY DIVIDED SENATE BOWING TO COMPLAINTS FROM AGRICULTURAL INTERESTS SENATE DEMOCRATS JOINED REPUBLICANS IN AN 8812 VOTE APPROVING A LARGELY SYMBOLIC RESOLUTION DECLARING THE SENATE'S INTENT TO ABANDON A PROPOSED INCREASE IN BARGE FUEL TAXES ON A 5346 VOTE THE LEADERSHIP THEN STRUGGLED TO FEND OFF A GOP ATTEMPT TO STRIP MR CLINTON'S PROPOSED ENERGY TAX A MAINSTAY OF HIS PROGRAM FOR THE WHITE HOUSE AND ITS DEMOCRATIC ALLIES THE QUESTION IS WHETHER THE APPROVAL OF THE BUDGET AND ECONOMICSTIMULUS PROPOSALS AUGURS A DURABLE NEW COALITION OR REPRESENTS THE HIGHWATER MARK OF MR CLINTON'S POLITICAL FORTUNES TOUGHER VOTES WILL COME LATER THIS YEAR WHEN LAWMAKERS MUST VOTE ON THE SPECIFIC TAX INCREASES AND SPENDING CUTS IMPLICIT IN THE BUDGET RESOLUTION AND THEN ON THE MASSIVE AND CONTENTIOUS OVERHAUL OF THE NATION'S HEALTHCARE SYSTEM THIS ISN'T THE END OF THE FIGHT SAID HOUSE MINORITY LEADER ROBERT MICHEL OF ILLINOIS MOMENTS BEFORE AN ALMOST UNANIMOUS DEMOCRATIC MAJORITY KILLED THE PRINCIPAL REPUBLICAN BUDGET PROPOSAL IN A 295135 VOTE IT'S JUST THE BEGINNING MINDFUL OF THE CHALLENGES TO COME DEMOCRATIC LEADERS WERE DETERMINED TO MAINTAIN DISCIPLINE IN THIS INITIAL TEST OF MR CLINTON'S PRIORITIES WHEN FRUSTRATED REPUBLICANS TURNED TO DELAYING TACTICS IT ONLY INCREASED THE DETERMINATION AT YESTERDAY'S MEETING OF HOUSE DEMOCRATIC WHIP ORGANIZATION TO STAY AND FINISH LAST NIGHT AND THOUGH THE LEADERSHIP MIGHT HAVE COMPROMISED WITH DEMOCRATIC CONSERVATIVES BY DELAYING SOME OF THE STIMULUS SPENDING REQUESTED BY THE WHITE HOUSE OTHER DEMOCRATS FEARED THAT CONCESSIONS NOW WOULD SIGNAL WEAKNESS HEADING INTO SUBSEQUENT BATTLES IF YOU START CHUMMING THE FISH IN MARCH THEY'LL BE EATING THE BOAT IN JUNE SAID REP GEORGE MILLER D CALIF CHAIRMAN OF THE HOUSE NATURAL RESOURCES COMMITTEE HOUSE MAJORITY WHIP DAVID BONIOR PROMISED THE LEADERSHIP WOULD MAINTAIN STRICT DISCIPLINE IN THE CAUCUS USING THIS WEEK'S BUDGET AND STIMULUS VOTES AS WELL AS ROLL CALLS ON HEALTH CARE AND DEFICITREDUCTION AS TESTS OF PARTY LOYALTY WHITE HOUSE BUDGET DIRECTOR LEON PANETTA HIMSELF A FORMER HOUSE MEMBER AND DEFICIT HAWK WAS CLOSELY INVOLVED IN THE DAYTODAY STRATEGY REASSURING DEMOCRATIC CONSERVATIVES WHO WERE REBUFFED IN THEIR ATTEMPT TO SCALE BACK THE STIMULUS PACKAGE FOR THEIR PART THE FISCALLY CONSERVATIVE DEMOCRATS SOUGHT TO AVOID THE IMPRESSION THAT THEY WERE CHALLENGING MR CLINTON AND EXPRESSED CONFIDENCE THAT HE WOULD ULTIMATELY REWARD THEIR LOYALTY THE PRESIDENT UNDERSTANDS WHAT A FAVOR IS SAID REP TIM PENNY D MINN THE HOUSE DEMOCRATS' VERSION OF THE ADMINISTRATION BUDGET WOULD USE A VARIETY OF TAX INCREASES AND SPENDING CUTS TO PUSH THE DEFICIT BELOW 200 BILLION AS MR CLINTON'S TERM DRAWS TO A CLOSE TO COVER THE DEFICITREDUCTION SHORTFALL SHOWN IN REVISED CONGRESSIONAL BUDGET OFFICE ESTIMATES OF MR CLINTON'S PROPOSAL THE HOUSE PLAN CALLS FOR MORE THAN 62 BILLION IN UNSPECIFIED SPENDING CUTS BEYOND THOSE PROPOSED BY THE PRESIDENT IN FISCAL 1994 THAT INCLUDES 870 MILLION MORE IN DEFENSE CUTS THAN THE PRESIDENT CALLED FOR CRAFTED BY BUDGET COMMITTEE CHAIRMAN MARTIN SABO D MINN THE HOUSE PLAN INCORPORATES MR CLINTON'S PROPOSALS TO IMPOSE AN ENERGY TAX RAISE THE TOP INCOMETAX RATE TO 36 ON CORPORATIONS AND ON INDIVIDUALS WITH TAXABLE INCOMES ABOVE 115000 AND INCREASE TO 85 FROM 50 THE PROPORTION OF SOCIAL SECURITY BENEFITS SUBJECT TO TAXATION FOR RECIPIENTS WITH OTHER INCOME OF AT LEAST 25000 FOR INDIVIDUALS AND 32000 FOR COUPLES REPUBLICANS ATTACKED THE DEMOCRATIC PLAN FOR ITS TAX INCREASES AND ITS FAILURE TO CURB SPENDING MORE AGGRESSIVELY THE MAIN GOP ALTERNATIVE FASHIONED BY OHIO REP JOHN KASICH AIMED TO CUT THE DEFICIT 430 BILLION OVER FIVE YEARS ENTIRELY THROUGH SPENDING CUTS TARGETING SUCH POTENTIALLY VOLUBLE CONSTITUENCIES AS FEDERAL CIVILIAN AND MILITARY RETIREES AND THE MOST AFFLUENT MEDICARE BENEFICIARIES A MODERATE GOP ALTERNATIVEEMBRACING MR KASICH'S CUTS BUT ALSO INCLUDING A TAX INCREASE ON INCOMES ABOVE 200000DREW SUPPORT FROM JUST 20 LAWMAKERS SENATE REPUBLICANS ALSO SOUGHT TO EXPLOIT DEMOCRATIC VULNERABILITIES OVER TAXES THOUGH THEIR ASSAULT ON THE ENERGY TAX FAILED LAST NIGHT GOP SENATORS PLANNED TO TARGET MR CLINTON'S SOCIAL SECURITY TAX PROPOSAL IN HOPES OF SPARKING DEFECTIONS AMONG THE 22 DEMOCRATIC SENATORS FACING REELECTION IN 1994 AT A MINIMUM A LONG STRING OF HOSTILE GOP AMENDMENTS IS SURE TO STRETCH DEBATE OVER THE SENATE DEMOCRATS' BUDGET PROPOSAL WELL INTO NEXT WEEK 9303190140 930319 PHILADELPHIAAREA ECONOMIC GROWTH IS FOUND TO SLOW BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FEDERAL RESERVE BANK OF PHILADELPHIA SAID MANUFACTURERS IN ITS ECONOMIC REGION ARE CONTINUING TO GROW BUT AT A SLOWER RATE THAN EARLIER IN THE YEAR THE REGIONAL FED IN ITS MARCH BUSINESS OUTLOOK SURVEY OF MANUFACTURERS SAID THAT WHILE MOST OF THE SURVEY'S INDICATORS REMAIN POSITIVE THEY ARE LOWER THAN LEVELS RECORDED IN RECENT MONTHS DESPITE GROWTH IN THE MANUFACTURING SECTOR EMPLOYMENT REMAINS WEAK AND RESPONDENTS ARE NOT EXPECTING EMPLOYMENT GAINS OVER THE NEXT SIX MONTHS WITH THE EXCEPTION OF EMPLOYMENT MOST ECONOMIC INDICATORS FOR FUTURE ECONOMIC ACTIVITY REMAIN POSITIVE BUT ARE ALSO LOWER THIS MONTH MANUFACTURING PRICES REMAIN RELATIVELY STABLE ALTHOUGH MANY OF THOSE SURVEYED EXPECT PRICES TO RISE IN THE NEXT SIX MONTHS THE PHILADELPHIA FED'S REGION INCLUDES THE EASTERN TWOTHIRDS OF PENNSYLVANIA SOUTHERN NEW JERSEY AND DELAWARE THE SURVEY TARGETS MANUFACTURING COMPANIES OF 350 EMPLOYEES OR MORE CURRENTLY THERE ARE ABOUT 500 COMPANIES IN THE REGION OF THIS SIZE AND ABOUT A THIRD OF THEM PARTICIPATE IN THE SURVEY THE PHILADELPHIA FED SAID IN ITS SURVEY THAT THE GENERAL ACTIVITY DIFFUSION INDEX THE SURVEY'S BROADEST MEASURE OF ECONOMIC PERFORMANCE DECLINED FROM 388 IN FEBRUARY TO 196 THIS MONTH THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDENTS EXPECTING AN INCREASE MINUS THE PERCENTAGE EXPECTING A DECREASE THE DECLINE IN THE INDEX FROM THE RELATIVELY HIGH LEVELS SUSTAINED DURING THE PAST SEVERAL MONTHS SUGGESTS THAT GROWTH IS CONTINUING BUT AT A SLOWER RATE WHILE 50 OF THE POLLED MANUFACTURERS REPORT NO CHANGE IN ACTIVITY FROM THE PREVIOUS MONTH NEARLY 35 REPORT INCREASES AND 15 REPORT DECLINES CHANGES IN INDIVIDUAL INDICATORS OF MANUFACTURING ACTIVITY ARE CONSISTENT WITH THE CHANGE IN THE OVERALL ACTIVITY INDEX THIS MONTH DIFFUSION INDEXES FOR BOTH SHIPMENTS AND NEW ORDERS REMAINED POSITIVE BUT FELL SOMEWHAT FROM THE HIGH LEVELS RECORDED OVER RECENT MONTHS ABOUT 38 OF THE SURVEYED COMPANIES INDICATE INCREASES IN SHIPMENTS FROM THE PREVIOUS MONTH AND 35 OF THE CONCERNS REPORT INCREASES IN NEW ORDERS AFTER SEVERAL MONTHS OF IMPROVEMENT MARCH'S CURRENT EMPLOYMENT INDEX SHOWS SOME DETERIORATION THE INDEX AFTER REMAINING POSITIVE FOR TWO MONTHS HAS NOW FALLEN BELOW ZERO ALTHOUGH NEARLY 74 OF THE COMPANIES RESPONDING TO THE SURVEY INDICATE NO CHANGE IN EMPLOYMENT FROM THE PREVIOUS MONTH THE PERCENTAGE OF CONCERNS MAKING CUTS TO THEIR PAYROLLS 18 OUTNUMBERS THOSE MAKING ADDITIONS 8 THE DIFFUSION INDEX FOR ECONOMIC ACTIVITY OVER THE NEXT SIX MONTHS DECLINED FROM 707 IN FEBRUARY TO 46 THIS MONTH THE MAJORITY OF MANUFACTURING CONCERNS 56 EXPECTS FURTHER INCREASES IN ACTIVITY OVER THE NEXT SIX MONTHS ALTHOUGH 33 OF THOSE POLLED EXPECT NO CHANGE IN ACTIVITY 10 SEE A DETERIORATION IN BUSINESS WITH RESPECT TO HIRING PLANS FOR THE NEXT SIX MONTHS COMPANIES PLANNING EMPLOYMENT CUTS OUTNUMBER THOSE PLANNING ADDITIONS THE FUTURE EMPLOYMENT DIFFUSION INDEX DECLINED FROM 118 TO NEGATIVE 19 THIS MONTH THE FIRST NEGATIVE READING ON FUTURE EMPLOYMENT SINCE FEBRUARY 1991 ALTHOUGH 54 OF THE FIRMS CONTACTED PLAN NO CHANGES IN EMPLOYMENT OVER THE NEXT SIX MONTHS COMPANIES EXPECTING TO DECREASE THE NUMBER OF WORKERS 23 NOW NARROWLY OUTNUMBER THOSE PLANNING INCREASES 21 9303190139 930319 DEBTCEILING INCREASE IS SOUGHT BY BENTSEN WASHINGTON TREASURY SECRETARY LLOYD BENTSEN ASKED CONGRESS TO TEMPORARILY INCREASE THE FEDERAL GOVERNMENT'S DEBT CEILING TO 437 TRILLION FROM 4145 TRILLION SAYING THE GOVERNMENT OTHERWISE WOULD RUN OUT OF CASH APRIL 7 IN A LETTER TO SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE MR BENTSEN ASKED THAT THE DEBT CEILING BE RAISED ON A TEMPORARY BASIS UNTIL SEPT 30 A LONGERLASTING EXTENSION OF THE GOVERNMENT'S BORROWING CEILING IS EXPECTED TO BE INCLUDED IN THE MAJOR DEFICITREDUCTION LEGISLATION LATER THIS YEAR THE TREASURY SECRETARY ASKED CONGRESS TO ACT BY A WEEK FROM TODAY TO AVOID UNNECESSARY UNCERTAINTY ALTHOUGH CONGRESS ALMOST ALWAYS VOTES TO RAISE THE DEBT CEILING IN TIME TO AVOID DEFAULTING ON GOVERNMENT DEBT OR CAUSING PROBLEMS FOR THOSE WHO RECEIVE GOVERNMENT CHECKS DEBTCEILING BILLS CAN BE POLITICALLY CONTROVERSIAL AND SOME REPUBLICANS ARE LIKELY TO MAKE THE VOTE AS PAINFUL AS POSSIBLE FOR DEMOCRATS BECAUSE SUCH BILLS BECOME MUSTPASS LEGISLATION THEY SOMETIMES ATTRACT EXTRANEOUS AMENDMENTS THE CLINTON ADMINISTRATION IS HOPING TO AVOID THAT THIS YEAR 9303190138 930319 GTE TO SELL DAKOTA LINES STAMFORD CONN GTE CORP SAID IT SIGNED DEFINITIVE AGREEMENTS TO SELL ITS TELEPHONESERVICE AREAS IN NORTH AND SOUTH DAKOTA TERMS WEREN'T DISCLOSED GTE PUT THE PROPERTIES UP FOR SALE OR TRADE IN JANUARY UNDER THE AGREEMENTS GTE WILL SELL ITS 10200 ACCESS LINES IN NORTH DAKOTA TO TPC INC OWNED BY UNITED TELEPHONE MUTUAL AID CORP DAKOTA CENTRAL TELECOMMUNICATIONS COOPERATIVE AND POLAR COMMUNICATIONS MUTUAL AID CORP GTE WILL SELL ITS 8000 SOUTH DAKOTA LINES TO GOLDEN WEST TELECOMMUNICATIONS COOPERATIVE GTE SAID IT EXPECTS THE SALES TO BE COMPLETED BY THE THIRD QUARTER 9303190137 930319 MARKETING & MEDIA MAKERS OF NINJA TURTLES III' MOVIE ARE BETTING ON FOURSTAR COMEBACK BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD THE SHOUTS OF COWABUNGA DUDE THAT ONCE SEEMED TO PASS THE LIPS OF EVERY 10YEAROLD ON THE PLANET HAVE FADED YET HERE COME THE TURTLES IN ANOTHER BIGSCREEN ADVENTURE WILL THE SHOUTING BEGIN AGAIN MORE TO THE POINT WILL AUDIENCES SHOW UP NEW LINE CINEMA CORP IS GAMBLING THAT THERE ARE ENOUGH DIEHARD TURTLES FANS STILL OUT THERE TO MAKE ANOTHER MOVIE ABOUT THE COMICBOOK SUPERHEROES WORTHWHILE TEENAGE MUTANT NINJA TURTLES III OPENS TODAY ON NEARLY 2100 THEATER SCREENS THE SEQUEL COMES TWO YEARS AFTER THE LAST INCARNATION TEENAGE MUTANT NINJA TURTLES 2 THE SECRET OF THE OOZE MOVIE STUDIOS CRANK OUT SEQUELS BECAUSE SUCH FILMS HAVE ESTABLISHED AWARENESS THAT HELPS MINIMIZE RISK AND MAY EVEN LOWER MARKETING COSTS PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PICTURES WHICH HAD BLOCKBUSTER SUCCESS WITH THE ADDAMS FAMILY AND WAYNE'S WORLD IS READYING ADDAMS FAMILY VALUES AND WAYNE'S WORLD 2 SUCH MOVIES ARE BELIEVED TO BE PRESOLD AND GENERALLY ARE GUARANTEED SUCCESSES LATER IN VIDEO STORES STILL MOST SEQUELS INCLUDING HOME ALONE 2 AND BATMAN RETURNS DON'T MATCH THE BOXOFFICE RESULTS OF THE ORIGINAL CHANCES OF A RETURN TO TURTLEMANIA SEEM SLIM THE REPTILES JUMPED ON THE SCENE IN THE LATE 1980S SPAWNING ONE OF THE MOST SUCCESSFUL LICENSING BONANZAS OF ALL TIME BUT THEY HAVE BEEN KARATECHOPPED BY THE EVILS OF OVERKILL SALES OF TURTLES TOYS AFTER PEAKING IN 1990 HAVE FALLEN PRECIPITOUSLY REAL TEENAGERS REGARD THEIR TURTLES COUNTERPARTS AS HASBEENS THERE IS STILL A TURTLES CARTOON SHOW ON TV BUT ONLY VERY YOUNG CHILDREN WATCH IT NOW STILL DONATELLO LEONARDO RAPHAEL AND MICHAELANGELO ARE RARING FOR A COMEBACK NEW LINE SAYS THIS MOVIE WHICH PUTS THE TIMETRAVELING MASKED DUDES IN ANCIENT JAPAN WITHOUT A MAP WITHOUT A CLUE WITHOUT A PIZZA IS HIPPER THAN THE SECOND ONE AND WILL REGAIN THE FAVOR OF TEENAGERS AND YOUNG ADULTS WHO LIKED THE FIRST BUT DISMISSED ITS FIRST SEQUEL AS TOO JUVENILE AN AUDIENCE OF FIVE AND SIXYEAROLDS BUYING LOWPRICE TICKETS WON'T BE ENOUGH FOR BONUSES AT NEW LINE TURTLES III HAD PRODUCTION COSTS OF 21 MILLION MORE THAN DOUBLE THAT OF THE FIRST FILM WE BELIEVE THERE ARE A LOT OF 14YEAROLDS WHO ARE CLOSET TURTLE LOVERS SAYS AN OPTIMISTIC CHRIS PULA NEW LINE'S PRESIDENT OF THEATRICAL MARKETING THEY'RE NOT NECESSARILY GOING TO ADMIT IT TO THEIR FRIENDS BUT THEY'RE GOING TO SHOW UP STILL NEW LINE CONCEDES THE TURTLES' AUDIENCE HAS NARROWED WITH FOUR TO 10YEAROLDS SHOWING THE MOST INTEREST INDUSTRY EXECUTIVES SAY IT APPEARS UNLIKELY THAT THE FRANCHISE WILL HAVE THE GAS THAT NEW LINE'S SIXFILM NIGHTMARE ON ELM STREET SERIES HAD SO FAR NOBODY IS TALKING ABOUT A TURTLES 4 THAT WOULDN'T BE PRUDENT BEFORE SEEING THIS WEEKEND'S BOXOFFICE GROSS SAYS MITCHELL GOLDMAN PRESIDENT OF DISTRIBUTION AND MARKETING AT NEW LINE MR GOLDMAN SAYS THAT SELLING 10 MILLION OF TICKETS THIS WEEKEND WOULD JUSTIFY CONSIDERATION OF ANOTHER FILM THAT FIGURE WOULD ALMOST CERTAINLY MAKE TURTLES III THE NO 1 MOVIE OF THE WEEKEND BUT IT WOULD BE FAR LOWER THAN THE OPENINGS OF EITHER OF THE FIRST TWO MOVIES IN 1990 THE ORIGINAL HAD AN OPENING WEEKEND GROSS OF 254 MILLION AND WENT ON TO SELL 138 MILLION OF TICKETS THE FIRST SEQUEL OPENED A YEAR LATER IN NEARLY 3000 THEATERS AN UNUSUALLY HIGH NUMBER AND TOOK IN 179 MILLION THE OPENING WEEKEND IT WENT ON TO GROSS 78 MILLION STUART GILLARD WHO WROTE AND DIRECTED THE LATEST FILM SAYS HE BELIEVES THE KEY TO MAKING IT FRESH WAS GETTING THE TURTLES OUT OF THE NEW YORK CITY SEWER SYSTEM AND INTO A DIFFERENT LOCALE BEFORE DECIDING ON JAPAN CIRCA 1603 HE PITCHED A BUNCH OF OTHER CONCEPTS ONE THAT HE HOPES MIGHT EVENTUALLY BECOME TURTLES 4 INVOLVES THE TURTLES HIKING TO FLORIDA TO TRY TO SAVE ENDANGERED SEA TURTLES BUT MR GILLARD WHO HOPES HIS SCRIPT WILL FIND MORE ADULT FANS THAN THE SECOND MOVIE DID KNOWS THAT THE CHALLENGE OF RESURRECTING A DYING FAD IS A DAUNTING ONE WE'LL NEVER GET THAT ORIGINAL ENTHUSIASM BACK IT WAS A ONCEINALIFETIME THING SALES OF TURTLES TOYS WHICH HIT 500 MILLION IN 1990 FELL LAST YEAR TO A STILLRESPECTABLE 200 MILLION THIS YEAR'S SALES ARE A BIG QUESTION MARK THOUGH PLAYMATES TOYS INC IS BRINGING OUT 93 NEW ACTION FIGURES AND ACCESSORIES SOME OF WHICH FOLLOW THE FEUDAL JAPAN THEME OF THE MOVIE SURGE LICENSING OF JERICHO NY THE TURTLES' LICENSING AGENT SAYS CUMULATIVE WORLDWIDE SALES ON A WHOLESALE BASIS TO DATE ARE WELL OVER 2 BILLION WHILE THERE IS VIRTUALLY NO WAY NEW LINE WILL LOSE ITS SHIRT THE QUESTION IS HOW MUCH IT STANDS TO GAIN THE MOVIE WAS FINANCED AND PRODUCED BY GOLDEN HARVEST FILMS A UNIT OF HONG KONG'S GOLDEN COMMUNICATIONS CO NEW LINE HAS ALL DOMESTIC DISTRIBUTION RIGHTS TO THE PROPERTY AND IT WILL BE ABLE TO PROFIT FROM ANCILLARY MARKETS INCLUDING HOMEVIDEO AND PAYTV SALES NEWS CORP'S TWENTIETH CENTURY FOX HAS INTERNATIONAL RIGHTS NEW LINE'S MARKETING TEAM PERHAPS FEARING A NOT THEM AGAIN CRY FROM MOVIEGOERS HAS MOUNTED A MORE RESTRAINED MARKETING EFFORT FOR THE FIRST SEQUEL JC PENNEY CO SHOWED THE MOVIE'S TRAILER ON TV SETS IN 600 OF ITS STORES RALSTON PURINA CO ADVERTISED THE FILM IN COMMERCIALS FOR ITS TURTLES CEREAL AND THE SHOWTIME CABLE NETWORK RAN A TURTLES SPECIAL RAPPER VANILLA ICE SANG NINJA RAP THE TURTLES WERE EVEN GUESTS ON BARBARA WALTERS'S ACADEMY AWARDS SPECIAL THIS TIME AROUND THERE HAVE BEEN FEW INTERVIEWS NO BIGTIME RAPPERS AND NO CABLE SPECIAL RALSTON PURINA SAYS IT ISN'T RUNNING ANY TV ADS TO PROMOTE TEENAGE MUTANT NINJA TURTLES THE CEREAL SOME OF THE LICENSEES WEREN'T INTERESTED IN PARTICIPATING THIS TIME AROUND BUT WE STILL HAVE A VERY AGGRESSIVE PROMOTIONAL SCHEDULE NEW LINE'S MR PULA SAYS NOTING THAT THERE HAVE BEEN TWO PROMOTIONAL INSERTS IN NEWSPAPERS ONE FOR KMART CORP AND ONE FOR AMERICAN HOME PRODUCTS CORP'S CHEF BOYARDEE BUT MANY OF THE PROMOTIONS ARE QUIETER AND SOME HAVEN'T EVEN STARTED BURGER KING CORP FOR EXAMPLE HAS A TIEIN STARTING NEXT WEEK IN MANY OF ITS OUTLETS IN WHICH THE TURTLES HELP PITCH A BICYCLESAFETY THEME THE FASTFOOD OPERATOR WILL SPEND 5 MILLION TAGGING THE PROMOTION IN TV ADS THE TURTLES DO APPARENTLY STILL HAVE SOME FANS IN HIGH PLACES LOS ANGELES MAYOR TOM BRADLEY HAS ISSUED A PROCLAMATION DECLARING TODAY TEENAGE MUTANT NINJA TURTLES DAY 9303190136 930319 MCDONNELL CHAIRMAN SKIPS HOUSE HEARING ON C17 WASHINGTON THE CHAIRMAN OF MCDONNELL DOUGLAS CORP THE NATION'S LARGEST DEFENSE CONTRACTOR DECLINED TO APPEAR AT A HOUSE SUBCOMMITTEE HEARING TO TESTIFY ON THE COMPANY'S TROUBLED C17 MILITARY CARGO AIRCRAFT PROGRAM REP JOHN CONYERS CHAIRMAN OF THE GOVERNMENT OPERATIONS COMMITTEE SAID THE COMMITTEE'S PANEL ON NATIONAL SECURITY WILL VOTE NEXT WEEK ON WHETHER TO ISSUE A SUBPOENA REQUIRING THE EXECUTIVE JOHN MCDONNELL TO APPEAR THE MANNER IN WHICH HE HAS DEALT WITH THE SUBCOMMITTEE HAS BEEN LESS THAN CANDID THE MICHIGAN DEMOCRAT SAID LARRY MCCRACKEN MCDONNELL DOUGLAS'S SPOKESMAN FOR THE C17 PROGRAM SAID MR MCDONNELL DECLINED REP CONYERS'S INVITATION TO APPEAR BUT OFFERED APPROPRIATE EXECUTIVES TO PROVIDE TESTIMONY HE ADDED WE BELIEVE MR MCDONNELL ANSWERED THE CHAIRMAN'S QUESTIONS ABOUT HIS PERSONAL PARTICIPATION IN MEETINGS CONCERNING THE PROGRAM IN 1990 IF A SUBPOENA IS ISSUED ANOTHER COMPANY SPOKESMAN SAID WE'D CERTAINLY COMPLY WITH IT CONGRESSIONAL INTEREST IN TERMINATING OR ALTERING THE C17 PROGRAM FOR WHICH CONGRESS ALREADY HAS APPROPRIATED 133 BILLION HAS INCREASED IN RECENT MONTHS BUDGETCUTTING PRESSURES HAVE COMBINED WITH A REPORT BY THE PENTAGON'S INSPECTOR GENERAL THAT THE AIR FORCE IN 1990 IMPROPERLY PROVIDED EXTRAORDINARY FINANCIAL ASSISTANCE TO MCDONNELL DOUGLAS 9303190135 930319 ASSETS OF MONEY FUNDS FELL BY 412 BILLION IN THE LATEST WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS FELL BY 412 BILLION TO 59215 BILLION FROM 59627 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 621 RETAIL MONEYMARKET MUTUAL FUNDS ROSE IN THE LATEST WEEK BY 105 BILLION TO 39174 BILLION THE TRADE GROUP SAID ASSETS OF 387 TAXABLE MONEYMARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 9818 MILLION TO 30863 BILLION ASSETS OF 234 RETAIL TAXEXEMPT FUNDS ROSE BY 73 MILLION TO 831 BILLION ASSETS OF THE 270 INSTITUTIONAL MONEYMARKET FUNDS FELL BY 518 BILLION TO 20041 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 220 TAXABLE MONEYMARKET FUNDS FELL BY 468 BILLION TO 17852 BILLION ASSETS OF 50 TAXEXEMPT FUNDS FELL BY 4923 MILLION TO 2189 BILLION 9303190134 930319 FINANCING BUSINESS MCDERMOTT INTERNATIONAL INC MCDERMOTT INTERNATIONAL INC NEW ORLEANS MCDERMOTT INC A UNIT OF MCDERMOTT INTERNATIONAL SAID IT FILED A PROSPECTUS SUPPLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE TAKEDOWN OF AS MUCH AS 200 MILLION OF MEDIUMTERM NOTES PREVIOUSLY REGISTERED THROUGH A 500 MILLION SHELF REGISTRATION DATED DEC 7 1992 PROCEEDS OF THE OFFERING WILL BE USED TO REDEEM HIGHCOUPON DEBT MCDERMOTT IS A WORLDWIDE ENERGY SERVICES COMPANY 9303190133 930319 BIG BUSINESSES CALL FOR IMPROVED CHILDCARE EFFORTS BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BIG BUSINESS TOOK ON THE UNLIKELY ROLE OF SOCIAL CRUSADER AS A GROUP BACKED BY INFLUENTIAL CORPORATE LEADERS CALLED FOR IMPROVED AND EXPANDED CHILDCARE PROGRAMS THE GROUP CALLED THE COMMITTEE FOR ECONOMIC DEVELOPMENT YESTERDAY RELEASED A REPORT WHY CHILD CARE MATTERS THAT RECOMMENDS A WIDE RANGE OF PROPOSALS INCLUDING SUBSIDIZED CHILDCARE PROGRAMS AND VOUCHERS AND TAX CREDITS THAT WOULD BE DISTRIBUTED MONTHLY OR EVEN WEEKLY INSTEAD OF ANNUALLY THOUGH THE GROUP DOESN'T ESTIMATE THE COST OF IMPLEMENTING MOST OF ITS PROPOSALS OR DETAIL WHERE THE FUNDS WOULD COME FROM ITS BUSINESS BACKING SIGNALS CLOUT WHEN IT WAS CHILDCARE ORGANIZATIONS IT WAS WHAT DO WOMEN WANT NOW' BUT THIS REPORT MAKES IT WHAT DOES THE NATION WANT NOW' DECLARED REP PATRICIA SCHROEDER D COLO AT A NEWS CONFERENCE HERE TO RELEASE THE REPORT PROPONENTS OF THE PROPOSALS HOWEVER SAID IT WASN'T CLEAR WHETHER THE REPORT WOULD RESULT IN LEGISLATION ROBERT CAMPBELL VICE CHAIRMAN FOR JOHNSON & JOHNSON AND THE HEAD OF THE PROJECT SAID HE SUPPORTS QUALITY CHILD CARE AS A WAY OF ATTRACTING AND KEEPING A STRONG WORK FORCE AS WELL AS PREPARING FUTURE EMPLOYEES WE WOULD DO WELL TO SEE CHILD CARE AS PART OF THE NATION'S HUMAN INVESTMENT STRATEGY SAID MR CAMPBELL WHO ALSO SERVES ON THE COMMITTEE'S BOARD OF TRUSTEES THE COMMITTEE WHICH WAS FOUNDED IN 1942 FOCUSES ON ECONOMIC AND SOCIAL PROBLEMS AMONG ITS 250 TRUSTEES ARE CORPORATE EXECUTIVES AND UNIVERSITY PRESIDENTS THE NONPARTISAN COMMITTEE ALSO BACKS MAKING HEAD START AVAILABLE TO ALL ATRISK CHILDREN AGED THREE AND FOUR THE PROPOSAL ONE OF THE FEW WITH A COST ESTIMATE CARRIES A 66 BILLION PRICE TAG THE REPORT WAS FUNDED BY 11 ORGANIZATIONS AND BUSINESSES INCLUDING JOHNSON & JOHNSON CARNEGIE CORP OF NEW YORK THE FORD FOUNDATION AND KRAFT GENERAL FOODS A UNIT OF PHILIP MORRIS COS BARBARA REISMAN THE EXECUTIVE DIRECTOR OF NEW YORKBASED CHILD CARE ACTION CAMPAIGN APPLAUDED THE REPORT NOTING THE SHIFT FROM TRADITIONAL BUSINESS THINKING THAT CHILD CARE MERELY UNBURDENS EMPLOYEES FOR WORK MS REISMAN SAID SHE WAS TROUBLED HOWEVER BECAUSE THE REPORT DIDN'T INDICATE HOW THE PROGRAMS WOULD BE FUNDED THEY CONCLUDED THAT THERE IS NO NEW MONEY TO INVEST IN CHILD CARE SHE SAID WHILE THAT MAY BE TRUE AT THE MOMENT THEY HAD BETTER FIND MONEY SOMEWHERE IN THE FUTURE 9303190132 930319 MRS CLINTON'S CZARIST PAST BY BLANT HURT AFTER A PERIOD OF SECRECY AMERICA'S HEALTHCARE CZAR FIRST LADY HILLARY RODHAM CLINTON IS EMBARKING ON A SERIES OF PUBLIC HEARINGS ON HEALTHCARE REFORM BEFORE AMERICANS PUT TOO MUCH TRUST IN MRS CLINTON'S CAPACITY TO SORT THROUGH THE MANY OPTIONS BEFORE HER THEY WOULD BE WISE TO REFLECT ON HER PAST PERFORMANCE AS ARKANSAS'S EDUCATION CZAR TEN YEARS AGO GOV BILL CLINTON APPOINTED HIS WIFE CHAIRMAN OF THE EDUCATION STANDARDS COMMITTEE IN ARKANSAS I DON'T COME AT THIS WITH A GREAT DEAL OF EXPERTISE SHE SAID ON THE DAY OF HER APPOINTMENT THEN AS NOW A LACK OF EXPERTISE DID NOT STAND IN THE WAY OF HER MAKING HEADY PLANS FOR ACTIVIST GOVERNMENT MRS CLINTON BEGAN HER QUICK STUDY OF EDUCATION IN ARKANSAS BY VISITING ALL 75 OF ITS COUNTIES JULY 6 1983 WAS A TYPICAL DAY HER COMMITTEE MET FOR NINE HOURS AND HEARD RECOMMENDATIONS FOR REVISING CURRICULUM STANDARDS FROM 49 EDUCATION GROUPS TWO MONTHS LATER THE EDUCATION STANDARDS COMMITTEE RELEASED ITS PROPOSED STANDARDS THEY DELVED INTO EVERY ASPECT OF A SCHOOL'S OPERATION CURRICULUM OPERATING POLICIES STUDENT PERFORMANCE ADMINISTRATION ACCREDITATION AND ON AND ON THE OPENING PAGE OF THE COMMITTEE'S REPORT READS EVERY CHILD IN ARKANSAS IS ENTITLED TO ATTEND A SCHOOL THAT MEETS THESE MINIMUM STANDARDS REGARDLESS OF THE LOCATION OF THE SCHOOL DISTRICT EMPHASIS ADDED WHAT FOLLOWS IS AN EXHAUSTIVE LIST OF SHALLS INDEED THIS WORD IS USED 124 TIMES IN THE 20PAGE DOCUMENT TO GIVE THESE SHALLS SOME TEETH THE STANDARDS ARE BACKED UP BY A MANDATE UNDER THE QUALITY EDUCATION ACT OF 1983 ANY SCHOOL THAT FAILS TO MEET THE STANDARDS CAN BE DISSOLVED OR ANNEXED BY THE STATE IT IS TELLING THAT MRS CLINTON LOOKED AT A PUBLIC SCHOOL SYSTEM ALREADY PLAGUED BY AN EXCESS OF CENTRALIZATION AND BUREAUCRACY AND PROPOSED TO REFORM IT FROM THE TOP DOWN VIA A LIST OF DEMANDS THAT REQUIRED EVEN MORE CENTRALIZATION AND BUREAUCRACY IN ADDITION MRS CLINTON'S WORK ON THE EDUCATIONAL STANDARDS LAID THE FOUNDATION UPON WHICH A HIGHER TAX STRUCTURE WAS BUILT IN 1983 ARKANSAS HAD 367 SCHOOL DISTRICTS TO A SOCIAL ENGINEER THIS CRAZY QUILT SEEMED SLOPPY UNEVEN AND UNACCOUNTABLE MRS CLINTON'S LIST OF EDUCATIONAL SHALLS AIMED TO REVERSE THIS CONSIDERABLE WRITHING ENSUED SOME DISTRICTS MERGED TO COMPLY BUT MOST STRUGGLED TO REMAIN INTACT IN 1984 A RECORD 84 ARKANSAS SCHOOL DISTRICTS VOTED FOR LOCAL MILLAGE TAX INCREASES TO MEET THE STANDARDS AFTER THE TAX HIKES KAI ERICKSON EXECUTIVE DIRECTOR OF THE ARKANSAS EDUCATION ASSOCIATION SAID IT IS A STRONG INDICATION THAT PEOPLE WILL GENERALLY SUPPORT EDUCATION IF GIVEN THE OPPORTUNITY OTHERS VIEWED THIS SOCALLED OPPORTUNITY AS A THREAT UNLESS A SCHOOL DISTRICT'S PATRONS VOTED TO TAX THEMSELVES THEY LOST THEIR LOCAL SCHOOLS IN EARLY 1984 GOV CLINTON USED THE MOMENTUM FROM MRS CLINTON'S EFFORTS TO RAISE AN ADDITIONAL 185 MILLION FOR EDUCATION VIA A STATE SALES TAX AN INCREASE OF 32 IN EDUCATION SPENDING BUT THE METHODS TO ENFORCE THE EDUCATIONAL STANDARDS WENT WELL BEYOND TAXES A POTENT INSTRUMENT WAS THE ESTABLISHMENT OF A STATEADMINISTERED MINIMUM PLACEMENT TEST MPT GIVEN IN THE THIRD SIXTH AND EIGHTH GRADES THE STANDARDS MANDATED THAT EACH DISTRICT PASS 85 OF THE STUDENTS TAKING THE MPT OR FACE THE PROSPECT OF A TAKEOVER THE TEST SET UP PERVERSE INCENTIVES ALL INVOLVED KNEW THEIR AUTONOMY WAS AT STAKE AS A RESULT THE SYSTEM WAS RIGGED IN 1989 A FOURCHE VALLEY ADMINISTRATOR WAS CENSURED FOR GIVING HANDWRITTEN EXCERPTS OF THE MPT TO STUDENTS THIS INDICATED A LARGER PROBLEM IN 1990 JOHN JACOB CANNELL OF FRIENDS FOR EDUCATION AN INDUSTRY WATCHDOG SAID HE RECEIVED A LOT OF LETTERS FROM ARKANSAS TEACHERS WHO DIDN'T FEEL RIGHT ABOUT CHEATING A PREDICTABLE CONSEQUENCE OF THIS TOPDOWN APPROACH WAS BUREAUCRATIZATION IN SEPTEMBER 1987 BENNY GOODEN SUPERINTENDENT OF THE FORT SMITH SCHOOL DISTRICT COMPLAINED OF THE INTOLERABLE BUREAUCRACY HE CLAIMED IT TOOK 11 POUNDS OF PAPERWORK BETWEEN MARCH AND JULY JUST TO PROVE HIS DISTRICT HAD COMPLIED WITH THE STATE'S EDUCATION STANDARDS WE KEPT A COPY OF EVERYTHING AND WEIGHED IT MR GOODEN SAID ATTEMPTS TO ENFORCE UNIFORMITY PROMPTED SOME SUPERINTENDENTS TO COMPLAIN OF THE TENDENCY TO WHIP THE WHOLE CLASS FOR THE SINS OF A FEW IN THE END BUREAUCRACY SERVED AS A FALLBACK FOR WRONGHEADED REFORMS TEACHER TESTING WAS TO HAVE ENSURED ACCOUNTABILITY IN HER 1983 LEGISLATIVE ADDRESS MRS CLINTON CALLED THIS MEASURE THE REAL HEART OF HER EDUCATION REFORMS NEVERTHELESS A 1988 WINTHROP ROCKEFELLER FOUNDATION SURVEY OF PARENTS TEACHERS AND ADMINISTRATORS IN 73 ARKANSAS SCHOOL DISTRICTS REVEALED THAT TEACHER TESTING WAS THE LEAST EFFECTIVE REFORM BY FAR TO REMEDY THIS IN MARCH 1989 A SOVIETSTYLE OFFICE OF ACCOUNTABILITY WAS ESTABLISHED WITHIN THE STATE'S DEPARTMENT OF HIGHER EDUCATION DID MRS CLINTON'S EFFORTS AS ARKANSAS'S EDUCATION CZAR DELIVER RESULTS THE ANSWER IS NO AT LEAST IF WE COUNT ONLY FAVORABLE ONES THE OUTCOME WAS TYPICAL OF ANY CENTRALIZED AND BUREAUCRATIZED SYSTEM HIGHER INPUTS IE MORE TAX DOLLARS DID NOT BRING HIGHER OUTPUTS A 1986 REPORT SHOWED THAT ARKANSAS'S HIGHSCHOOL SENIORS SCORED WORSE ON THE AMERICAN COLLEGE TEST A STANDARDIZED TEST FOR COLLEGE ENTRANCE MR CLINTON SAID IT JUST DOESN'T MAKE SENSE THAT WE WOULD INCREASE THE QUALITY AND RANGE OF INSTRUCTION INCREASE TEACHER PAY AND HAVE STUDENT TEST SCORES IN LOWER GRADES GO UP WHILE ACT SCORES DECLINE BY 1992 ARKANSAS'S ACT SCORES WERE UP BUT THE NEW AVERAGE WAS A RESULT OF THE ENHANCED ACT TEST IMPLEMENTED IN 1990 THAT RESULTED IN SCOREINFLATION IN ALL STATES ADJUSTED ACCORDINGLY THE 1992 ACT TESTS SCORES ARE EXACTLY THE SAME AS THEY WERE IN 1972 THIS PLACES ARKANSAS NEAR THE BOTTOM OF THE TESTSCORE RANKINGS AMONG THE 28 STATES USING THE ACT IT IS TRUE THAT SAT SCORES ARE AT A 10YEAR HIGH BUT ONLY 6 OF ARKANSAS'S HIGHSCHOOL STUDENTS TAKE THE TEST THE STATE BOARD OF HIGHER EDUCATION CLAIMS THE CORE CURRICULUM ESTABLISHED IN 1983 HAS RESULTED IN A THREEPERCENTAGEPOINT DIFFERENTIAL AMONG STUDENTS WHO TOOK THE COLLEGE PREP COURSES YET THE DATA ON ARKANSAS COLLEGE STUDENTS ARE DISCOURAGING LAST YEAR 57 OF ALL FRESHMEN ENTERING ARKANSAS COLLEGES HAD TO BE GIVEN REMEDIAL CLASSES IN READING WRITING OR MATH OVER THE PAST 10 YEARS THE NUMBER OF STUDENTS ENROLLING IN ARKANSAS COLLEGES HAS INCREASED BY 32 BUT THE GRADUATION RATE HAS INCREASED BY ONLY 13 THE TROUBLE EXTENDS TO THE LOWER GRADE LEVELS AS WELL IN MAY 1991 A RECORD 22 OF THE LITTLE ROCK SCHOOL DISTRICT'S EIGHTHGRADERS FAILED THE STATE'S MINIMUM PERFORMANCE TEST BY 1990 GOV CLINTON'S FOCUS HAD SHIFTED FROM REFORMING THE EDUCATIONAL SYSTEM TO THROWING MONEY AT IT IN 1991 THE ARKANSAS SALES TAX WAS BOOSTED AGAIN TO RAISE AN ADDED 145 MILLION FOR EDUCATION ALL TOLD FROM 1984 TO 1992 EDUCATION SPENDING IN ARKANSAS MORE THAN DOUBLED WHAT ARE AMERICANS TO MAKE OF HILLARY CLINTON'S TRACK RECORD AS A REFORMER AS ARKANSAS'S EDUCATION CZAR SHE APPROACHED HER JOB AS A SOCIAL ENGINEER WHO CENTRALIZES AND BUREAUCRATIZES RATHER THAN AS A MARKET LIBERAL WHO RESPECTS LOCAL AUTONOMY AND DEFERS TO THE WISDOM OF MARKET FORCES SUCH AN APPROACH SPELLS TROUBLE FOR AMERICA'S HEALTHCARE SYSTEM MANY OBSERVERS CONTEND OUR HEALTHCARE SYSTEM IS BESET BY THE SAME PROBLEMS THAT PLAGUE PUBLIC EDUCATION TOO MUCH TOPDOWN GOVERNMENT INTERFERENCE EXCESSIVE BUREAUCRATIZATION PERVERSE INCENTIVES AND A LACK OF CONSUMER CHOICES TO JUDGE BY EARLY REPORTS OF THE OPTIONS MRS CLINTON'S TASK FORCE IS CONSIDERING THESE PROBLEMS WILL ONLY GET WORSE WITH THE SAME KIND OF PERVERSE CONSEQUENCES THAT ARKANSAS'S PARENTS AND SCHOOLCHILDREN MUST NOW SUFFER MR HURT IS A LITTLE ROCK BUSINESSMAN AND A COLUMNIST FOR ARKANSAS BUSINESS 9303190131 930319 FINANCING BUSINESS NEWS CORP NEWS CORP SAID IT FILED A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A SHELF OFFERING OF AS MUCH AS 1 BILLION IN DEBT SECURITIES THE MEDIA AND ENTERTAINMENT COMPANY BASED IN SYDNEY AUSTRIALIA SAID THE REGISTRATION STATEMENT FILED WITH THE SEC ISN'T YET EFFECTIVE IT SAID THE DEBT SECURITIES MAY BE SENIOR SENIOR SUBORDINATED OR SUBORDINATED NEWS CORP'S OPERATIONS INCLUDE PRODUCTION AND DISTRIBUTION OF TELEVISION PROGRAMMING AND FILMS AND PUBLICATION OF BOOKS AND NEWSPAPERS 9303190130 930319 POLITICS & POLICY UNCERTAIN UNBROKERED PEACE PLAN FOR BOSNIA DOESN'T END CLINTON'S HEADACHES ABOUT THE WAR BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEGOTIATIONS TO END THE WAR IN BOSNIA COULD BE STUMBLING TOWARD THE ENDGAME BUT FEW MEMBERS OF THE CLINTON ADMINISTRATION SEEM ESPECIALLY PLEASED BY THE PROSPECT EVEN AS SENIOR US OFFICIALS URGE BOSNIA'S MUSLIMLED GOVERNMENT TO SIGN ON TO A UNITED NATIONSBROKERED PEACE PLAN AND HAVE PROMISED US TROOPS TO HELP ENFORCE IT THEY ARE UNCOMFORTABLE AND DEFENSIVE THE REASON THE PLAN WHICH WOULD DIVIDE BOSNIA INTO 10 ETHNICALLY BASED PROVINCES ISN'T PERCEPTIBLY DIFFERENT FROM ONE THAT TOP CLINTON AIDES CRITICIZED A FEW MONTHS AGO AS POLITICALLY UNVIABLE AND MORALLY SUSPECT THE TALKS COULD STILL FALL APART TO PROTEST A NEW SERB OFFENSIVE BOSNIA'S PRESIDENT ALIJA IZETBEGOVIC YESTERDAY TEMPORARILY PULLED OUT OF FORMAL NEGOTIATIONS BUT MR IZETBEGOVIC AGREED TO CONTINUE MEETING WITH UN REPRESENTATIVES ON THE PEACE PROPOSAL AND TO REASSURE THE BOSNIANS THE US RENEWED ITS CALL FOR ENFORCEMENT OF A NOFLY ZONE OVER THEIR COUNTRY CRITICS OF THE PLAN INCLUDING SOME WHO ARE CLINTON SUPPORTERS HAVE ALREADY BEGUN TO GRUMBLE ABOUT THE SELLOUT OF BOSNIA THEY CHARGE THE PLAN WILL ONLY REWARD SERBIAN AGGRESSION AND FEED THE SERBS' TERRITORIAL APPETITE THE ISSUE HAS IMPLICATIONS FOR THE CLINTON PRESIDENCY FAR BEYOND THE FORMER YUGOSLAVIA SAYS JOSHUA MURAVCHIK OF THE AMERICAN ENTERPRISE INSTITUTE ONE OF THE SOCALLED NEOCONSERVATIVES OR CONSERVATIVE DEMOCRATS WHO THREW HIS SUPPORT TO MR CLINTON DURING THE CAMPAIGN PRESIDENT CLINTON PROMISED A MORE MUSCULAR AMERICAN FOREIGN POLICY AND BOSNIA WAS THE LITMUS TEST SAYS MR MURAVCHIK HE CLEARLY FAILED BUT CLINTON AIDES COUNTER THAT IF BOSNIA'S BELEAGUERED MUSLIMS CAN ACCEPT THE PLAN DESPITE ITS FLAWS THEY CAN TOO AND THEY ARGUE THAT THE PLAN IS PROBABLY THE BEST ONE THAT THE BOSNIAN GOVERNMENT CAN EXPECT GIVEN THE LACK OF ENTHUSIASM FOR STRONGER MILITARY MEASURES BOTH ABROAD AND IN THE US WHERE THE PENTAGON'S TOP BRASS IS RESISTING A DEEPER MILITARY INVOLVEMENT IN BOSNIA AND WARNING OF A BALKAN QUAGMIRE FOR MR CLINTON WHO CAMPAIGNED ON A PLATFORM OF MORALITY AND ACTIVISM IN US FOREIGN POLICY COPING WITH BOSNIA HAS CLEARLY BEEN A FRUSTRATING AND SOBERING EXPERIENCE IN THIS GRIM PANORAMA THE ADMINISTRATION MAY BE IN FOR AT LEAST SOME SHORTTERM GRATIFICATION DESPITE YESTERDAY'S SETBACK US OFFICIALS ARE HOPING THAT BOSNIA'S MUSLIMLED GOVERNMENT WILL SIGN THE PEACE AGREEMENT SOON SINCE BOSNIA'S CROATIANS HAVE ALREADY SIGNED THAT WOULD LEAVE THE SERBS ISOLATED AND US OFFICIALS HOPE OPEN TO A NEW ROUND OF INTERNATIONAL PRESSURES SANCTIONS AND PUNISHMENTS BUT ANY SATISFACTION WON'T LAST FOR LONG IF THE SERBS DO SIGN ON TO THE ACCORD THE ADMINISTRATION WILL HAVE TO DECIDE QUICKLY WHETHER TO SEND US TROOPS A RISKY PROPOSITION AT BEST AND IF THE SERBS DON'T CAVE IN TO INTERNATIONAL PRESSURES THE WHITE HOUSE WILL BE BACK WHERE IT STARTED TWO MONTHS AGO SQUABBLING WITH ITS OWN MILITARY AND ITS CLOSEST EUROPEAN ALLIES ABOUT WHAT TOUGHER MEASURES SHOULD BE TAKEN AGAINST THE BOSNIAN SERBS BOSNIAN SOURCES SAY THAT VICE PRESIDENT ALBERT GORE HAS PROMISED THAT IF THE SERBS REFUSE THE PEACE DEAL THE US WILL LOBBY THE UN TO LIFT THE ARMS EMBARGO ON BOSNIA US OFFICIALS ACKNOWLEDGE THE COMMITMENT BUT ADMIT THEY'LL HAVE A TOUGH TIME CONVINCING THE REST OF THE SECURITY COUNCIL TO GO ALONG BY EVEN RAISING THE POSSIBILITY OF SENDING TROOPS TO KEEP THE PEACE IN BOSNIA AN IDEA OPPOSED BY A MAJORITY OF AMERICANS THE PRESIDENT HAS ALREADY DONE FAR MORE THAN HIS PREDECESSOR BUT HE HAS ALSO DONE LESS THAN HE SUGGESTED DURING THE CAMPAIGN WHEN HE CALLED FOR A MULTILATERAL MILITARY EFFORT INCLUDING AIR STRIKES TO PUNISH AND CONTAIN SERBIAN AGGRESSION AIDES SAY THAT CANDIDATE CLINTON CHOSE TO TAKE A STRONG STAND ON BOSNIA BECAUSE OF A MIXTURE OF PERSONAL CONVICTION POLITICAL IDEOLOGY AND PARTY POLITICS THEY SAY HE WAS ESPECIALLY MOVED BY REPORTS LAST SUMMER OF SERBIAN CONCENTRATION CAMPS AND THAT HIS PERSONAL OUTRAGE WAS REINFORCED BY MR GORE WHO FELT EVEN MORE STRONGLY ABOUT THE NEED FOR US ACTION MOREOVER SAY AIDES BOSNIA WENT TO THE VERY HEART OF MR CLINTON'S NEW DEMOCRAT IMAGE ON FOREIGN POLICY AND TO HIS DESIRE TO REACH OUT TO CONSERVATIVE DEMOCRATS WHO HAD STRAYED FROM THE PARTY DURING THE REAGAN YEARS IN THE CAMPAIGN MR CLINTON ARGUED FORCEFULLY THAT THE END OF THE COLD WAR HAD MADE IT POSSIBLE FOR THE PARTY TO PUT ASIDE THE DIVISIONS OF THE VIETNAM WAR AND PURSUE A MORE ACTIVIST AGGRESSIVE FOREIGN POLICY BASED ON DEMOCRATIC VALUES THOSE ARGUMENTS DID MANAGE TO WOO SOME KEY CONSERVATIVES AMONG THEM MR MURAVCHIK VETERAN COLD WARRIOR PAUL NITZE AND R JAMES WOOLSEY NOW HEAD OF THE CENTRAL INTELLIGENCE AGENCY THEIR SUPPORT IN TURN HELPED TO INSULATE MR CLINTON FROM PRESIDENT BUSH'S JIBES ABOUT HIS ALLEGED DRAFTDODGING AND HIS LACK OF FOREIGNPOLICY EXPERIENCE ONCE IN OFFICE HOWEVER BOSNIA PROVED TO BE A FAR TOUGHER PROBLEM THAN ANYONE ON MR CLINTON'S TEAM EVER IMAGINED THEIR OPTIONS THEY SAY WERE CONSTRAINED IN PART BY THE DETERIORATING SITUATION ON THE GROUND AS SERBIAN FORCES SEIZED EVER MORE LAND BRITAIN FRANCE AND RUSSIA ALSO PROVED FAR MORE RESISTANT TO THE IDEA OF MILITARY ACTION THAN CLINTON AIDES EXPECTED MOST IMPORTANT SAYS ONE SENIOR AIDE MR CLINTON AND HIS ADVISERS OVERESTIMATED THE EFFICACY OF AIR STRIKES TO PUT AN END TO SERBIAN AGGRESSION AN IDEA THEY WERE QUICKLY DISABUSED OF BY THE PENTAGON DESPITE ALL THE HYPE ABOUT IRAQ AND THE AIR WAR IT BECAME CLEAR THAT IF WE WANTED TO CHANGE THE SITUATION MILITARILY WE WOULD HAVE TO COMMIT GROUND TROOPS AND THERE WAS NO PUBLIC CONSENSUS AT ALL FOR THAT SAYS ONE TOP AIDE IF THE POLLS ARE ANY INDICATION MR CLINTON ISN'T LIKELY TO TAKE TOO MUCH HEAT FOR DOING LESS THAN PROMISED IN BOSNIA ON CAPITOL HILL THERE ARE ONLY A FEW SUPPORTERS FOR MORE AGGRESSIVE US ACTION MOST NOTABLY DEMOCRATIC SEN JOSEPH BIDEN OF DELAWARE AND REPUBLICAN SEN RICHARD LUGAR OF INDIANA MOST OTHER MEMBERS SEEM TO HOLD THE SORT OF DAMNED IF YOU DO DAMNED IF YOU DON'T ATTITUDE EXPRESSED BY SENATE MINORITY LEADER ROBERT DOLE OF KANSAS WHO HAS BOTH WARNED THAT THE PRESIDENT'S APPROACH WON'T BE NEAR ENOUGH TO STOP THE BLOODSHED AND ETHNIC CLEANSING AND EXPRESSED DOUBTS ABOUT SENDING US TROOPS TO BOSNIA EVEN UNDER THE BEST CONDITIONS IN FACT THE PRESIDENT'S BIGGEST POLITICAL BATTLE AND ONE IN WHICH HE MAY STILL HAVE TO PROVE HIS ACTIVIST METTLE COULD COME IF THE PEACE ACCORD DOES COME ABOUT AND HE SEEKS TO WIN PUBLIC SUPPORT FOR A COMMITMENT OF US PEACEKEEPERS EVEN WITHIN THE ADMINISTRATION THERE STILL APPEAR TO BE REAL DIFFERENCES ON WHETHER TO COMMIT TROOPS SECRETARY OF DEFENSE LES ASPIN SOUNDED LIKE A MAN LOOKING FOR WIGGLE ROOM WHEN HE DECLARED RECENTLY THAT US FORCES WOULD GO ONLY AFTER PEACE WAS SOLIDLY IN PLACE BUT MORTON ABRAMOWITZ PRESIDENT OF THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE WARNS THAT THOSE SORT OF ASSURANCES JUST MAY NOT BE POSSIBLE IN BOSNIA EVEN AFTER THEY SIGN THE PAPER THEY COULD START FIGHTING AGAIN FOR UMPTEEN DIFFERENT REASONS HE SAYS IT WILL ALWAYS BE RISKY TO GO OR NOT TO GO PRESIDENT CLINTON HAS SAID THE US WOULD BE WILLING TO SEND SOME GROUND TROOPS TO BOSNIA AS PART OF A PEACE KEEPING FORCE DO YOU FAVOR OR OPPOSE USING AMERICAN GROUND TROOPS IN SUCH AN OPERATION 9303190129 930319 WHO'S NEWS DIODES CHIEF HURLEY RESIGNS CHATSWORTH CALIF DIODES INC SAID THOMAS HURLEY RESIGNED AS CHAIRMAN CHIEF EXECUTIVE OFFICER AND A DIRECTOR FOR PERSONAL FAMILY REASONS TWO EXECUTIVES FROM DIODES'S CONTROLLING SHAREHOLDER SILITEK CORP OF TAIWAN WILL SHARE MR HURLEY'S FORMER DUTIES DIODES SAID MR HURLEY WILL CONTINUE AS A CONSULTANT AT THE SEMICONDUCTOR CONCERN RAYMOND SOONG CHAIRMAN OF SILITEK WAS NAMED TO THE ADDITIONAL DIODES POSTS OF CHAIRMAN AND A DIRECTOR DAVID LIN SILITEK PRESIDENT AND A DIODES DIRECTOR WAS NAMED CHIEF EXECUTIVE OFFICER AND PRESIDENT OF DIODES COMPANY OFFICIALS DIDN'T RETURN CALLS FOR ELABORATION ON THE CHANGES 9303190128 930319 THREE OFFICERS TO QUIT GENERAL DYNAMICS CORP END OF TURNAROUND PLAN BRINGS A CASH PAYOUT CUTS AT HEADQUARTERS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL THE DISMANTLING OF DEFENSE GIANT GENERAL DYNAMICS CORP ACCELERATED AS TOP EXECUTIVES SAID THEY WOULD RESIGN AS EMPLOYEES SLASH HEADQUARTERS STAFF AND MAKE A SPECIAL 20ASHARE CASH DISTRIBUTION TO SHAREHOLDERS THE CASH DISTRIBUTION WITH A TOTAL PAYOUT OF 620 MILLION IS PAYABLE APRIL 22 TO SHAREHOLDERS OF RECORD APRIL 5 THE THREE MASTER STRATEGISTS BEHIND THE COMPANY'S WHIRLWIND TWOYEAR SELLOFF EFFORTITS CHAIRMAN WILLIAM A ANDERS VICE CHAIRMAN HARVEY KAPNICK AND EXECUTIVE VICE PRESIDENT LESTER CROWNARE RESIGNING IN MAY AS EMPLOYEES BUT HOLDING ON TO THEIR POSTS AS DIRECTORS WE HAVE BASICALLY DONE THE MAJOR PART OF THE TURNAROUND JOB FOR WHICH THIS TEAM WAS ASSEMBLED SAID THE 59YEAROLD MR ANDERS WHO WILL BE SUCCEEDED AS CHIEF EXECUTIVE OFFICER BY PRESIDENT JAMES MELLOR 62 MESSRS CROWN AND KAPNICK ARE BOTH 67 YEARS OLD AS INDEPENDENT DIRECTORS HOWEVER THE THREE RESIGNING MANAGERS WILL REMAIN TO OVERSEE DISTRIBUTION TO SHAREHOLDERS OF THE COMPANY'S GROWING 16 BILLION CASH PILE WHICH WAS RAISED THROUGH SALES OF ITS FIGHTER AND MISSILE BUSINESSES AND OTHER LINES THE LATEST DISTRIBUTION STILL LEAVES PROSPERING SHAREHOLDERS SLAVERING FOR MORE UNDER A TAXORIENTED PLAN OF PARTIAL LIQUIDATION THE COMPANY IS DUE TO METE OUT MUCH OF ITS CASH BY YEAREND THROUGH STOCK BUYBACKS OR DIVIDENDS AND MORE MONEY IS LIKELY TO BE RAISED SOON THROUGH SALES OF OTHER ASSETS SUCH AS A BUILDINGMATERIALS BUSINESS VALUED AT ABOUT 300 MILLION TAX ADVANTAGES UNDER THE PLAN ARE KEY TO PRESERVING THE INTEREST OF BIG SHAREHOLDERS SUCH AS INVESTOR WARREN BUFFETT AND THE CROWN FAMILY INTERESTS WHICH INCLUDE MR CROWN AND CONTROL 14 OF GENERAL DYNAMICS MR BUFFETT HOLDS A 15 STAKE THE COMPANY ALSO COULD PICK UP SEVERAL HUNDRED MILLION DOLLARS BY SETTLING ITS DISPUTE WITH THE GOVERNMENT OVER DEVELOPMENT COSTS FOR THE A12 NAVY JET ESTIMATES BY COMPANY OFFICIALS AND ANALYSTS SUGGEST AT LEAST 50 TO 70 A SHARE IS ACCUMULATING IN CASH AT GENERAL DYNAMICS EVEN WITHOUT SUCH A SETTLEMENT IN THE LAST TWO YEARS INVESTOR EXPECTATIONS HAVE PUMPED THE STOCK TO ALMOST SIX TIMES ITS 2025 TRADING VALUE WHEN MR ANDERS TOOK OVER IN TRADING ON THE NEW YORK STOCK EXCHANGE THURSDAY THE STOCK FINISHED AT 11850 UP 125 MANY DEFENSE EXECUTIVES HAVE PUBLICLY OR PRIVATELY CRITICIZED MR ANDERS FOR CHOOSING TO SELL OFF THE COMPANY'S HEALTHIEST BUSINESSES BUT MR ANDERS MAINTAINS HIS DECISIONS ARE IN THE BEST INTEREST OF EMPLOYEES AND SHAREHOLDERS HE ALSO SAYS HE HAS BEEN WILLING TO BUY BUSINESSES BUT THOSE EFFORTS HAVEN'T PANNED OUT AS TOP OFFICERS WITHDRAW BEHIND THEM GENERAL DYNAMICS LINGERS AS A HODGEPODGE OF SIGNIFICANT BUT LARGELY UNSALABLE MILITARY AND COMMERCIAL BUSINESSES INCLUDING PRODUCTION OF TANKS NUCLEAR SUBMARINES AND MEDIUMLIFT SPACE ROCKETS WITH TOTAL ANNUAL SALES OF ABOUT 35 BILLION JUST TWO YEARS AGO IN 1990 GENERAL DYNAMICS SALES TOPPED 954 BILLION UNDER THE LATEST CHANGES THE CORPORATE STAFF AT ITS FALLS CHURCH VA HEADQUARTERS WILL SHRINK TO JUST 50 WORKERS FROM 250 BY THE END OF 1994 AS VARIOUS LAYERS OF MANAGEMENT ARE STRIPPED THAT SPARE MANAGERIAL FORCE FACES A FUTURE IN WHICH ITS MOST IMPORTANT SALES CAMPAIGN WILL BE DIRECTED AT THE US GOVERNMENT AS IT SEEKS TO EITHER SECURE ENOUGH WORK OR FOREIGN SALES TO MAKE ITS REMAINING BUSINESSES SALABLE OR AT LEAST TO ENSURE THEY SURVIVE AT ALL THE COMPANY ALSO SAID THAT WHILE ITS BOARD WOULD REMAIN UNCHANGED OVER THE COMING YEAR IT WOULD SHRINK AFTER THAT AND MAXIMUM AGES WOULD BE LOWERED GENERAL DYNAMICS ALSO WILL REDEEM PREFERREDSTOCK PURCHASE RIGHTS THAT SERVE AS A POISON PILL TO DISCOURAGE A BUYOUT BUT THERE ISN'T MUCH TO ATTRACT BUYERS THESE DAYS TO GENERAL DYNAMICS ITS ELECTRIC BOAT DIVISION BASED IN GROTON MASS HAS ENOUGH WORK BUILDING SEAWOLF SUBMARINES TO CARRY IT THROUGH 1997 IT HAS FAILED TO PLACE ITS ARMOREDVEHICLES DIVISION THE TANK BUILDER IN A JOINT VENTURE ITS ATLASCENTAUR MEDIUMLIFT ROCKETS WILL NEED GOVERNMENT CONTRACTS TO SURVIVE MR ANDERS HAS SAID MR MELLOR SAID IN AN INTERVIEW THAT UNDER HIS PURVIEW THE COMPANY ISN'T LOOKING TO SELL THOSE BUSINESSES BUT RATHER TO GET BETTER PROFITS FROM THE 9 BILLION BACKLOG OF UNFILLED ORDERS THE BUSINESSES HAVE UNDER IMPROVEMENTS TO DATE HE SAID I THINK WE HAVE ALREADY CAPTURED THE LOWHANGING FRUIT BUT THERE IS A LOT MORE UP THERE 9303190127 930319 CREDIT RATINGS CRUM & FORSTER STANDARD & POOR'S CORP LOWERED ITS CLAIMSPAYING ABILITY RATING ON THE CRUM & FORSTER INSURANCE GROUP TO SINGLEA FROM SINGLEAPLUS REFLECTING POOR EARNINGS AND UNDERWRITING RESULTS IN ADDITION S&P REVISED ITS RATING IMPLICATIONS TO DEVELOPING FROM NEGATIVE IN LIGHT OF THE CURRENT RESTRUCTURING EFFORTS OF THE GROUP AND PENDING REGULATORY APPROVAL OF THAT RESTRUCTURING CRUM & FORSTER A PROPERTY/CASUALTY INSURER IS A SUBSIDIARY OF XEROX CORP STAMFORD CONN CRUM & FORSTER OFFICIALS COULDN'T IMMEDIATELY BE REACHED FOR COMMENT 9303190126 930319 INTERNATIONAL BMW ANNOUNCES FALL IN '92 PROFIT CHAIRMAN RETIRES BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN DESPITE RECORD SALES AND A REPUTATION FOR AVOIDING THE POTHOLES PLAGUING OTHER GERMAN CAR MAKERS BAYERISCHE MOTOREN WERKE AG SAID PROFIT SLIPPED A SURPRISING 73 IN 1992 NET INCOME DROPPED TO 726 MILLION MARKS 4368 MILLION LAST YEAR FROM 783 MILLION MARKS IN 1991 MOST ANALYSTS HAD EXPECTED BMW'S NET TO ROUGHLY MATCH THE PREVIOUS YEAR'S FIGURE THE DECLINE OCCURRED EVEN THOUGH BMW WAS RUNNING ITS FACTORIES AT FULL TILT WITH SALES FOR THE YEAR UP 47 FROM 1991 BMW'S DIVIDENDS WILL REMAIN UNCHANGED AT 1250 MARKS FOR ORDINARY SHARES AND 1350 MARKS FOR PREFERRED SHARES THE PROFIT FIGURE IS CLEARLY DISAPPOINTING SAID SUSANNE OLIVER AN AUTO ANALYST AT CREDIT SUISSE FIRST BOSTON IN LONDON IT WAS SUPPOSED TO BE UNCHANGED THE MUNICHBASED COMPANY ALSO ANNOUNCED THE RETIREMENT OF ITS CHAIRMAN EBERHARD VON KUENHEIM MR VON KUENHEIM THIS YEAR TURNS 65 THE CUSTOMARY RETIREMENT AGE FOR TOP MANAGERS BUT SOME OBSERVERS OF THE COMPANY HAD PREDICTED HE MIGHT TRY TO HOLD THE JOB LONGER THE CHANGES STILL WILL LEAVE HIM IN A KEY POSITION AS CHIEF OF BMW'S NONEXECUTIVE SUPERVISORY BOARD WHICH COMPANY OFFICIALS SAID WOULD PERMIT HIM TO CONTINUE EXERTING STRONG INFLUENCE ON THE COMPANY BMW'S ANNOUNCEMENTS COME AT A TIME OF GROWING TURMOIL IN GERMANY'S AUTO INDUSTRY VOLKSWAGEN AG EUROPE'S LARGEST CAR MAKER THIS WEEK ANNOUNCED THAT EARNINGS PLUNGED 87 IN 1992 AND DISMAL RESULTS ARE ALSO EXPECTED FROM MERCEDESBENZ AG A UNIT OF DAIMLERBENZ AG GERMAN CAR MAKERS ARE SUFFERING A COMBINATION OF SLUMPING SALES HIGH COSTS IN THEIR GERMAN FACTORIES AND THE DEVALUATION OF KEY EUROPEAN CURRENCIES LAST FALL WHICH CUT PROFIT MARGINS IN THOSE MARKETS FOR GERMAN EXPORTERS BMW HAS WEATHERED THE STORM BETTER THAN MOST THE COMPANY LAST YEAR OUTSOLD ITS ARCH RIVAL MERCEDESBENZ FOR THE FIRST TIME IN HISTORY AND THE FIRM IS RUSHING TO CUT COSTS AND SHIFT SOME PRODUCTION TO RELATIVELY LESSEXPENSIVE LOCATIONS 9303190125 930319 MARKETING & MEDIA ANSON CHARGES PARAMOUNT QUASHED HIS DISNEY BOOK FOR SIMON & SCHUSTER BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WRITER ROBERT SAM ANSON SUED SIMON & SCHUSTER INC CLAIMING IT TRIED TO SUPPRESS AN UNFLATTERING BOOK HE IS WRITING ON WALT DISNEY CO MR ANSON ALSO CLAIMED THE PUBLISHER STILL OWES HIM PART OF HIS 400000 ADVANCE IN A COMPLAINT FILED IN US DISTRICT COURT HERE MR ANSON SEEKS DAMAGES ESTIMATED AT IN EXCESS OF 1 MILLION HE ALSO ASKED JUDGE KIMBA WOOD TO EXPEDITE THE TRIAL AND TO REQUIRE SIMON & SCHUSTER TO PROVIDE AN ADMISSION ON THE RECORD THAT HE IS RELEASED FROM HIS CONTRACT SO THAT HE CAN TRY TO SELL THE BOOK TO ANOTHER PUBLISHER THE LAWSUIT ALLEGES THAT PRESSURE FROM SIMON & SCHUSTER'S PARENT COMPANY PARAMOUNT COMMUNICATIONS INC AND OTHER PERSONS AND/OR ENTITIES OPPOSED TO THE BOOK'S PUBLICATION QUASHED THE BOOK THOUGH HE DOES NOT SAY SO IN THE SUIT MR ANSON CLAIMED AND SAID HE WILL ATTEMPT TO PROVE IN COURT THAT THE PUBLISHER CANCELLED THE BOOK BECAUSE DISNEY'S TOP EXECUTIVES PUT PRESSURE ON MARTIN DAVIS PARAMOUNT'S CHAIRMAN A SPOKESMAN FOR PARAMOUNT SAID THE ALLEGATIONS ABOUT MR DAVIS ARE ABSURD A DISNEY SPOKESMAN SAID WE HAVEN'T SEEN THE PAPERS AND DON'T COMMENT ABOUT LAWSUITS WHILE PUBLISHERS ROUTINELY CANCEL CONTRACTS FOR BOOKS THAT ARE LATE OR SUBSTANDARD IT IS UNUSUAL FOR A PUBLISHER TO KILL A BOOK BY A REPEAT AUTHOR ESPECIALLY ONE WITH SUCH A LARGE ADVANCE TWO OF MR ANSON'S PREVIOUS SIX BOOKS HAVE BEEN PUBLISHED BY SIMON & SCHUSTER IT IS ALSO UNUSUAL TO KILL AN ANTICIPATED BOOK BEFORE EVEN A ROUGH DRAFT HAS BEEN DELIVERED THE LAST TIME SIMON & SCHUSTER CREATED A STIR BY CANCELLING A BOOK WAS IN NOVEMBER 1990 WHEN IT DECIDED NOT TO PUBLISH THE COMPLETED AMERICAN PSYCHO AUTHORED BY BRET EASTON ELLIS THE VIOLENTLY GRAPHIC NOVEL ABOUT A SERIAL KILLER WAS CANCELLED A MONTH BEFORE IT WAS SCHEDULED TO LAND IN BOOKSTORES AT THE TIME PARAMOUNT'S MR DAVIS DENIED SPECULATION THAT HE HAD A ROLE IN QUASHING THE BOOK BUT SAID PARAMOUNT SUPPORTED THE DECISION LATER PUBLISHED BY A DIVISION OF RANDOM HOUSE THE BOOK BECAME A BEST SELLER SOME HAILED PARAMOUNT'S DECISION NOT TO PUBLISH THE BOOK OTHERS ACCUSED IT OF CENSORSHIP IN THE CASE OF MR ANSON'S DISNEY BOOK THE AUTHOR SAID HE HAS COMPLETED SUBSTANTIAL RESEARCH BUT HASN'T BEGUN WRITING HE WAS PAID 160000 OUT OF A 400000 ADVANCE AND IS DUE ANOTHER 40000 UPON COMPLETION OF MOST OF HIS RESEARCH THAT AMOUNT HE SAID HAS BEEN WITHHELD THE BOOK'S ORIGINAL DUE DATE WAS MAY 1993 MR ANSON SAID THAT DATE WAS EXTENDED TO JUNE 1994 SIMON & SCHUSTER CLAIMS THAT THE BOOK WAS BEHIND SCHEDULE AND THAT THE WRITER CONTRARY TO EXPECTATIONS WASN'T GETTING ACCESS TO MAJOR INSIDERS INDEED DISNEY OFFICIALS SAY ITS TOP BRASS DECLINED TO COOPERATE WITH MR ANSON SIMON & SCHUSTER RELEASED THIS STATEMENT THE ANSON PROJECT WAS SIGNED UP SEVERAL YEARS AGO IT IS NOW CONSIDERABLY BEHIND SCHEDULE AND THE AUTHOR HASN'T YET ACHIEVED THE COOPERATION FROM THE MAJOR INTERVIEW SOURCES NECESSARY FOR THE BOOK TO SUCCEED AT THE LEVEL WE ALL ANTICIPATED WHEN IT WAS ACQUIRED MR ANSON'S ATTORNEY MARTIN GARBUS OF FRANKFURT GARBUS KLEIN & SELZ SAID SIMON & SCHUSTER COULD CONCEIVABLY ASK MR ANSON TO RETURN THE ADVANCE MONEY PAID SO FAR WHICH HE DOESN'T HAVE IN HIS COURT DOCUMENTS MR ANSON SAID HE HAS ALREADY SPENT 230000 PREPARING FOR THE BOOK INCLUDING PAYING SALARIES TO HIS ASSISTANTS PUBLISHERS GENERALLY DO DEMAND THAT ADVANCES BE RETURNED FOR CANCELLED PROJECTS OFTEN THE PAYBACK IS NEGOTIATED AND DOESN'T INCLUDE THE FULL AMOUNT OF ADVANCE PAID IN MANY CASES THE ADVANCE ISN'T RETURNED UNTIL THE BOOK IS RESOLD TO ANOTHER PUBLISHER MR ANSON SAID HE MOVED HIS FAMILY TO LOS ANGELES TO WORK ON THE BOOK AND EMPLOYED SIX RESEARCHERS TO HELP HIM HE SAID THE BOOK WAS PLANNED TO SHOW BOTH POSITIVE AND NEGATIVE ASPECTS OF DISNEY'S SUCCESS THE BOOK WILL DETAIL HOW DISNEY HANDLES AND INTIMIDATES THE PRESS AND COMPETITORS THEY THINK THEY CAN HAVE THEIR WAY ABOUT ANYTHING SAID MR ANSON WHO ADDED THAT HE'S DETERMINED TO COMPLETE THE BOOK EVEN IF I HAVE TO PUBLISH IT MYSELF BUT IT ISN'T CLEAR WHETHER OTHER PUBLISHERS WILL JUMP IN IF GIVEN THE CHANCE GIVEN THE PAST PERFORMANCE OF BOOKS ABOUT DISNEY JOHN TAYLOR'S STORMING THE MAGIC KINGDOM A MOSTLY ADMIRING BOOK PUBLISHED BY RANDOM HOUSE'S KNOPF IN 1987 RECEIVED LARGELY POSITIVE REVIEWS BUT WAS ONLY A MODEST SUCCESS IN TERMS OF SALES IN 1991 BUSINESS ONEIRWIN PUBLISHED THE DISNEY TOUCH BY RON GROVER RECEIVED LESS FAVORABLE REVIEWS AND WAS ALSO NOT A BIG SELLER AND AT LEAST ONE OTHER DISNEY BOOK IS SAID TO BE IN THE WORKS 9303190124 930319 TRACKING TRAVEL BY JONATHAN DAHL THE RENTALCAR SHORTAGE THAT'S OCCURRING ON A SPORADIC BASIS NATIONWIDE HAS BECOME CHRONIC IN HAWAII BUDGET RENT A CAR HAD TO TURN DOWN 2500 CALLERS TRYING TO BOOK CARS LAST MONTH IN MAUI THRIFTY RENTACAR SYSTEM SAYS ITS HAWAII OFFICE HAS BEEN SOLD OUT HALF OF THE TIME SINCE DECEMBER AND AT MANY AGENCIES IN HAWAII CONSUMERS WHO GET CARS ARE PAYING AS MUCH AS 30 MORE THAN LAST YEAR NATIONALLY MANY CARRENTAL COMPANIES BEGAN CUTTING FLEETS THIS YEAR AFTER THEIR DISCOUNTS FROM AUTO MAKERS SHRANK HAWAII CARRENTAL COMPANIES HAVE BEEN PARTICULARLY SQUEEZED BECAUSE MOST CAR MAKERS ALSO NO LONGER SUBSIDIZE SHIPPING COST FROM THE MAINLAND RENTAL COMPANIES IN HAWAII BOUGHT 24 FEWER CARS IN 1992 THAN IN 1991 ACCORDING TO THE HAWAII AUTOMOTIVE DEALERS ASSOCIATION BUDGET STARTED THE YEAR WITH A FLEET OF 7000 CARS DOWN FROM 9000 A YEAR EARLIER MOREOVER CARRENTAL COMPANIES HAVE BEEN CAUGHT OFF GUARD BY RISING DEMAND IN HAWAII AFTER YEARS OF SLUGGISHNESS THERE WE DIDN'T ANTICIPATE THE JUMP IN DEMAND A BUDGET SPOKESWOMAN SAYS IN RESPONSE THE BEECH HOLDINGS UNIT BOOSTED ITS FLEET BY 1000 CARS IN MARCH THE SHORTAGES ARE UNEVEN HERTZ SAYS IT HAS MAINTAINED ITS FLEET SIZE IN HAWAII AND HASN'T HAD SHORTAGES SO FAR PEOPLE WITH RESERVATIONS HAVEN'T BEEN TURNED AWAY AT THE COUNTER WHEN RENTAL CARS WERE IN SHORT SUPPLY IN PARTS OF FLORIDA AT CHRISTMAS DOLLAR RENT A CAR SYSTEMS DIDN'T HAVE CARS FOR HUNDREDS OF RESERVATIONS DOLLAR A CHRYSLER UNIT TRIED TO APPEASE CUSTOMERS BY OFFERING VOUCHERS FOR FUTURE RENTALS BUT CUSTOMERS HAD TO WAIT ANYWHERE FROM A FEW HOURS TO A FEW DAYS FOR THEIR OWN WHEELS AS A RESULT TRAVEL AGENTS CONTINUE TO ADVISE PEOPLE WITH RESERVATIONS TO KEEP THEIR CONFIRMATION NUMBERS IN CASE RENTAL COMPANIES CLAIM AT THE COUNTER TO HAVE LOST THE RESERVATION THOUGH THE INDUSTRY DENIES THE PRACTICE SOME AGENTS SUSPECT CARRENTAL COMPANIES VOID RESERVATIONS WHEN THEY OVERBOOK TOO MUCH BUSINESS TRAVEL TO EASTERN EUROPE WHICH DIDN'T RISE WHEN THE BERLIN WALL FELL IS FINALLY PICKING UP US AND INTERNATIONAL COMPANIES PLAN TO INCREASE THEIR TRIPS TO EASTERN EUROPE 20 THIS YEAR ACCORDING TO A RECENT SURVEY OF 120 COMPANIES BY AMERICAN EXPRESS THE SURVEY FOUND MOST EXECUTIVES INTERVIEWED AT THOSE COMPANIES THINK ONCEPOOR TRAVEL CONDITIONS AND ACCOMMODATIONS IN THIS REGION HAVE IMPROVED HOTELS AND RESTAURANTS IN MOST CITIES IN THE REGION RECEIVED SURPRISINGLY HIGH RATINGS FROM THE EXECUTIVES THEIR VIEW OF ENTERTAINMENT OPTIONS ALSO WAS GENERALLY POSITIVE BUT PROBLEMS REMAIN ABOUT HALF OF THE EXECUTIVES SAID LUGGAGE HANDLING WAS POOR OR FAIR AT THE WARSAW AIRPORT MORE THAN 70 SAID THE SAME OF MOSCOW MORE THAN TWOTHIRDS OF THE EXECUTIVES SAID OVERALL AIRPORT COMFORT WAS FAIR OR POOR IN MOSCOW PRAGUE AND WARSAW BY FAR THE BIGGEST INCREASE IN TRAVEL WILL BE IN PRAGUE WHERE THE SURVEYED COMPANIES ARE PLANNING AN AVERAGE OF 21 TRIPS THIS YEAR UP FROM 12 IN 1992 SMALLER INCREASES ARE EXPECTED FOR MOSCOW AND BUDAPEST AND NO INCREASE IS EXPECTED FOR WARSAW WHILE SOME CARRIERS HAVE BEEN EXPANDING BUSINESSCLASS SERVICE THE NATION'S THREE LARGEST CARRIERS HAVE ADDED FIRSTCLASS SEATS AMERICAN AIRLINES SAYS IT RECENTLY COMPLETED CHANGES IN ITS BOEING 757S INCREASING THE NUMBER OF FIRSTCLASS SEATS IN EACH PLANE TO 22 FROM 12 DELTA AIR LINES AND UNITED AIRLINES A UAL SUBSIDIARY MADE SIMILAR CHANGES TO THEIR 757S LAST YEAR THOUGH THESE PLANES DON'T MAKE UP A MAJORITY OF THE CARRIERS' FLEETS THEY ARE USED ON POPULAR LONGHAUL TRIPS IN THE US INCLUDING SOME COASTTOCOAST FLIGHTS THE CHANGES ARE WELCOME NEWS FOR THOSE WHO CAN AFFORD TO PAY SAY 1120 TO FLY ONE WAY FROM MIAMI TO SEATTLE IN COMFORT AMERICAN AN AMR SUBSIDIARY SAYS DEMAND FOR FIRSTCLASS SEATS AMONG PAYING CUSTOMERS ROSE LAST YEAR RESULTING IN MORE SELLOUTS FREQUENTFLIER MEMBERS WHO CAN UPGRADE TO FIRST CLASS HAVE BEEN SCRAMBLING FOR THESE SEATS TOO EXPANDING FIRST CLASS HAS GOT TO MAKE A BIG DIFFERENCE SAYS JANE COSTELLO EDITOR OF BUSINESS FLYER MAGAZINE BASED IN NEWTON MASS IT WAS GETTING TOO HARD TO GET ON MORE SEATS HOWEVER HAVEN'T IMPROVED FIRSTCLASS SERVICE FIRSTCLASS CONNOISSEURS HAVE LONG COMPLAINED THAT FIRSTCLASS SERVICE ISN'T NEARLY SO LUXURIOUS ON DOMESTIC FLIGHTS AS ON INTERNATIONAL TRIPS AMERICAN SAYS ITS DOMESTIC FIRST CLASS WHILE MUCH BETTER THAN COACH STILL LACKS THE PERSONAL VIDEO MONITORS OR FANCY LAMB'SWOOL SEATS THAT ITS INTERNATIONAL FIRSTCLASS CUSTOMERS GET THE WINES ARE A LOT BETTER ON OUR INTERNATIONAL TRIPS TOO AN AMERICAN SPOKESMAN SAYS WHILE SOME CARRIERS EXPAND FIRSTCLASS CABINS OTHERS HEAD IN THE OPPOSITE DIRECTION NORTHWEST AIRLINES IS CONSIDERING ELIMINATING ALL OR SOME FIRSTCLASS SEATS ON INTERNATIONAL FLIGHTS A SPOKESMAN SAYS IT NOW HAS 16 FIRSTCLASS SEATS ON EACH OF ITS DC10 PLANES THE CHANGES WOULD START THIS SUMMER CONTINENTAL AIRLINES HAS ELIMINATED FIRSTCLASS SEATING ON MANY INTERNATIONAL FLIGHTS COMBINING ITS BUSINESS AND FIRSTCLASS CABINS ONE REASON CARRENTAL PRICES VARY SO MUCH FROM CITY TO CITY IS AIRPORT FEES MORE THAN 100 AIRPORTS CHARGE OFFAIRPORT RENTAL COMPANIES SPECIAL FEES THAT VARY GREATLY FROM 225 TO 15 OF REVENUE THE FEES ARE THEN PASSED ON TO CONSUMERS HARTFORD'S AIRPORT CHARGES ONLY 225 BUT NEW YORK'S THREE MAJOR AIRPORTS CHARGE 85 ACCORDING TO HERTZ AMERICAN AIRLINES HAS MADE ONE OF ITS MOST POPULAR FREQUENTFLIER AWARDS HARDER TO EARN A ROUNDTRIP UPGRADE TO FIRST CLASS FROM FULL COACH FARE ON DOMESTIC FLIGHTS NOW TAKES 15000 MILES INSTEAD OF 10000 9303190123 930319 INTERNATIONAL MEXICAN HYDROCARBON RESERVES MEXICO CITY FOR THE FIRST TIME IN NINE YEARS MEXICO RECORDED A NET ADDITION TO ITS HYDROCARBON RESERVES IN 1992 PETROLEOS MEXICANOS SA'S GENERAL DIRECTOR FRANCISCO ROJAS SAID MEXICO'S PROVEN RESERVES AS OF JAN 1 1993 STOOD AT 6505 BILLION BARRELS OF OIL EQUIVALENT UP SLIGHTLY FROM 6500 BILLION BARRELS IN 1991 MR ROJAS SAID IN HIS ANNUAL REPORT ON THE CONDITIONS OF PEMEX THE STATE OIL COMPANY STILL RESERVES ARE OFF FROM AN HISTORIC HIGH OF 725 BILLION BARRELS IN 1984 9303190122 930319 INTERNATIONAL AUSTRALIAN VEHICLE REGISTRATIONS SYDNEY AUSTRALIA AUSTRALIAN NEW MOTORVEHICLE REGISTRATIONS TOTALED 40123 IN FEBRUARY UP 20 FROM 33448 IN JANUARY BUT DOWN 07 FROM 40420 IN FEBRUARY 1992 ACCORDING TO DATA SUPPLIED BY CONSULTING FIRM PAXUS CORP THE PAXUS DATA AREN'T SEASONALLY ADJUSTED THE OFFICIAL SEASONALLY ADJUSTED FEBRUARY FIGURES ON MOTOR VEHICLE REGISTRATIONS ARE SCHEDULED TO BE ANNOUNCED MARCH 26 BY THE BUREAU OF STATISTICS 9303190121 930319 IMF RESTORES PERU TO LIST OF APPROVED BORROWERS WASHINGTON THE INTERNATIONAL MONETARY FUND SAID IT APPROVED A 14 BILLION THREEYEAR LOAN PACKAGE FOR PERU RESTORING THE COUNTRY TO A LIST OF NATIONS TO WHICH IT WILL LEND MONEY THE IMF SAID THE MONEY WHICH WOULD BE AVAILABLE UNTIL MARCH 17 1996 WOULD BE USED TO SUPPORT PERU'S MEDIUMTERM ECONOMIC PROGRAM THE IMF SAID THE PACKAGE WAS APPROVED BECAUSE OF VARIOUS EFFORTS BY THE PERUVIAN GOVERNMENT TO REMEDY ITS ECONOMY AND CLEAR DEBTS OWED TO THE IMF AND OTHER FOREIGN CREDITORS THE DECISION COMES AS MUCH OF THE INTERNATIONAL COMMUNITY WITHHOLDS ITS VERDICT ON HOW WELL PRESIDENT ALBERTO FUJIMORI IS RESUSCITATING PERU'S ECONOMY THE US SUSPENDED BILATERAL AID TO PERU LAST YEAR AFTER MR FUJIMORI DISSOLVED THE COUNTRY'S CONGRESS AND JUDICIARY FOLLOWING A MILITARY COUP THAT MANY CHARGE HE STAGED HE HAS GAINED POPULAR SUPPORT AMONG PERUVIANS DISGRUNTLED BY THE COUNTRY'S ECONOMIC WOES HOWEVER FOREIGN ASSISTANCE IS CONSIDERED VITAL TO ANY ECONOMIC RECOVERY IN PERU AND THE IMF SENT A SIGNAL YESTERDAY THAT IT HAS RENEWED FAITH IN MR FUJIMORI IN A STATEMENT MICHEL CAMDESSUS MANAGING DIRECTOR OF THE IMF LAUDED PERU'S COURAGE VISION AND DETERMINATION TO WORK TOWARD A BETTER FUTURE WITH THE SUPPORT OF THE INTERNATIONAL COMMUNITY 9303190120 930319 MARKETING & MEDIA SPORTS DRINK 10K TRIES DIFFERENT PITCH TO WIN MARKET SHARE FROM GATORADE BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL SPORTS DRINK 10K IS ABOUT TO TRY AN END RUN ON GATORADE IN THE PAST DECADE 100ODD BEVERAGES HAVE STEPPED UP TO CHALLENGE GATORADE ON ITS OWN TURF ATHLETICALLY ACTIVE MEN THE RIVAL DRINKS MIMICKED GATORADE'S SWEATY JOCK ADVERTISING AND ITS DISTINCTIVE WATEREDDOWN CITRUSY FLAVOR MOST HAVE BEEN QUICKLY BENCHED BUT JAPANESEOWNED SUNTORY WATER GROUP PLANS TO LAUNCH A 14 MILLION ADVERTISING CAMPAIGN FOR ITS 10K BRAND TO CAPITALIZE ON WHAT IT SEES AS GATORADE'S VULNERABILITIES RATHER THAN MARKETING 10K AS A GATORADE WANNABE THE 10K CAMPAIGN MARKS A BOLD ATTEMPT TO REDEFINE WHAT A SPORTS DRINK TASTES LIKE AND TO PITCH IT TO KIDS SUNTORY REFORMULATED ITS EIGHTYEAROLD DRINK GIVING IT A MUCH SWEETER TASTE THAT IS APPEALING TO YOUTHS AVAILABLE IN MOST OF THE COUNTRY 10K HAS ALREADY GENERATED A MARKET SHARE OF 5 IT'S A VERY DISTANT NO 2 TO GATORADE WHICH OWNS ABOUT 90 OF THE 1 BILLION SPORTS DRINK MARKET BUT 10K'S AD BUDGET PUTS IT SQUARELY IN THE BIG LEAGUES WITH GATORADE WHICH LAST YEAR SPENT 219 MILLION ON ADVERTISING ACCORDING TO LEADING NATIONAL ADVERTISERS INC WHICH TRACKS AD SPENDING THE NEW 10K SPOTS HANDLED BY WPP GROUP'S OGILVY & MATHER WILL BE LAUNCHED OVER THE NEXT FEW WEEKS DURING CHILDREN'S PROGRAMMING AND ON CABLE CHANNEL NICKELODEON TARGETING YOUNGSTERS AGED SIX TO 12 THE COMMERCIALS USE THE DECIDEDLY CHILDISH LINE REALLY REALLY GOOD STUFF AND SHUN THE PUMPEDUP PROATHLETE IN FAVOR OF A BOYNEXTDOOR LITTLE LEAGUER WE JUST COULDN'T BEAT OUR HEADS AGAINST THE UNBELIEVABLE IMAGE OF GATORADE SAYS JAMES M STEVENS WHO LAST YEAR BECAME PRESIDENT OF SUNTORY A DIVISION OF JAPAN'S SUNTORY INTERNATIONAL HE WAS FORMERLY A TOP OFFICER AT COCACOLA CO'S BIGGEST BOTTLER IN THE LATE 1970S MR STEVENS HELPED TO CREATE THE BOTTLED WATER BUSINESS IN THIS COUNTRY WORKING WITH AN OBSCURE FRENCH IMPORT CALLED PERRIER MR STEVENS'S LATEST PROJECT TO REDEFINE THE SPORTS DRINK STEMS PARTLY FROM PERSONAL EXPERIENCE HIS DAUGHTER USED TO DRINK GATORADE DURING HER SOCCER GAMES BUT THE GRADESCHOOLER WOULDN'T TOUCH THE STUFF IN THE REFRIGERATOR AT HOME THE REASON SHE DIDN'T LIKE THE TASTE MUCH NO MAJOR SPORTS DRINK HAS RISKED VEERING FAR FROM GATORADE'S CHARACTERISTIC BLAND SLIGHTLY SALTY TASTE WHICH HAS BEEN THE CATEGORY STANDARD NONETHELESS THAT FLAVOR IS SOMETIMES REFERRED TO IN THE BEVERAGE INDUSTRY AS THE SWEATY SOCK TASTE SO SUNTORY BEGAN REFORMULATING AND DEVISED A SWEETERTASTING DRINK THAT STILL PERFORMS AS A SOCALLED ISOTONIC THOSE BEVERAGES ARE DESIGNED TO REPLENISH FLUID MINERALS AND CARBOHYDRATES LOST DURING EXERCISE GATORADE REALLY HASN'T BEEN CHALLENGED ON THE TASTE FRONT SAYS MR STEVENS IN RECENT TASTE TESTS CONDUCTED BY TOPLINE RESEARCH CORP A NEW YORK MARKET RESEARCH COMPANY ROUGHLY TWOTHIRDS OF PRETEENS LIKED 10K ORANGE LEMONLIME AND FRUIT PUNCH MUCH BETTER THAN THE GATORADE COUNTERPARTS AND 70 TO 85 OF THOSE CHILDREN SAID THEY WOULD ASK THEIR MOTHERS TO BUY 10K ACCORDING TO THE SUNTORYCOMMISSIONED STUDY A GATORADE SPOKESWOMAN SAID GATORADE WAS SCIENTIFICALLY FORMULATED TO TASTE BEST WHEN YOU'RE HOT AND THIRSTY IN HER COMPANY'S TESTS GATORADE HAS BEEN PREFERRED OR AT PARITY WITH 10K DEPENDING ON THE FLAVOR GATORADE'S TESTS USED THE CORE AUDIENCE OF YOUNG ADULTS AND DIDN'T INCLUDE CHILDREN AS DIRECT COMPETITION TO GATORADE MOUNTED WITH PEPSI INTRODUCING ALL SPORT AND COKE POWERADE MR STEVENS DECIDED 10K NEEDED A NEW GAME PLAN SEEING A BURGEONING POPULATION OF PRETEENS HE DECIDED TO REDIRECT 10K INTO A HIGHLY FICKLE 6 BILLION CATEGORY OF KIDS' DRINKS INCLUDING FRUIT JUICES KOOLAID AND HIC 10K WITH ABOUT 60 CALORIES PER EIGHTOUNCE SERVING HAS ABOUT HALF THE CALORIES OF TRADITIONAL CHILDREN'S DRINKS GIVEN THE AFFINITY OF CHILDREN TO SPORTS TAKING A SPORTS DRINK TO KIDS IS A VERY INTRIGUING IDEA AND ONE I SUSPECT WILL WORK VERY WELL SAYS HELLEN BERRY VICE PRESIDENT FOR MARKETING BEVERAGE MARKETING CORP A NEW YORK MARKET RESEARCH FIRM IF 10K TAKES HOLD AMONG KIDS SHE EXPECTS GATORADE QUICKLY TO DEVELOP A REFORMULATED PRODUCT FOR LITTLE TASTE BUDS A GATORADE JR OF SORTS GATORADE OWNED BY QUAKER OATS CO HASN'T IGNORED THE YOUNGER MARKET TWO YEARS AGO IT PUT CHICAGO BULLS STAR MICHAEL JORDAN AND KIDS TOGETHER IN BE LIKE MIKE TV SPOTS AND IT HAS RUN ADS IN WOMEN'S MAGAZINES PITCHING MOMS ON GATORADE FOR ACTIVE KIDS BUT THE COMPANY HAS NEVER PUT MUCH OF A PUSH ON KIDS GATORADE'S HERITAGE AND IMAGERY HAS FOCUSED ON HARDDRIVING ADULT ATHLETES THE ONES WHO DRINK GATORADE MOST THE SPOKESWOMAN SAYS AND WE'RE CERTAINLY REMAINING TRUE TO OUR ROOTS AS FOR CHILDREN SHE SAYS GATORADE TENDS TO LURE THEM ANYWAY WHAT THEY WANT IS WHAT THEY SEE PROFESSIONALS DRINKING AND THAT'S GATORADE SHE SAYS STILL MR STEVENS THINKS THE 10K APPROACH WILL BE MORE PALATABLE FOR CHILDREN WITH THE NEW TASTE AND CAMPAIGN HE PREDICTS A DOUBLING OF 10K'S SALES ABOUT 50 MILLION AT RETAIL LAST YEAR IN THE NEXT 24 MONTHS WHEN YOU'RE 10 YOU'RE NOT THINKING ABOUT BECOMING MICHAEL JORDAN BUT THE BEST PLAYER IN YOUR CLASS HE SAYS 9303190119 930319 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 ELI LILLY & CO 200 MILLION OF NOTES DUE MARCH 15 2003 PRICED AS 6 1/4 AT 99625 TO YIELD 6301 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO HOUSTON LIGHTING & POWER CO 150 MILLION OF COLLATERALIZED MEDIUMTERM NOTES DUE MARCH 1 2000 PRICED AT PAR TO YIELD 610 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC HOUSTON LIGHTING & POWER IS A UNIT OF HOUSTON INDUSTRIES INC VF CORP 100 MILLION OF NOTES DUE MARCH 15 2003 PRICED AS 6 5/8 AT 99207 TO YIELD 6735 THE NOTES NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO BOATMEN'S BANCSHARES INC 100 MILLION OF SUBORDINATED NOTES DUE MARCH 15 2003 PRICED AS 6 3/4 AT 99775 TO YIELD 6781 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO LOUISIANA POWER & LIGHT CO 100 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 1 2000 WON BY DEALERS LED BY KIDDER PEABODY & CO THE BONDS WILL BE REOFFERED AS 6 AT 9830 TO YIELD 6306 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE BONDS ARE RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P LOUISIANA POWER & LIGHT IS A UNIT OF ENTERGY CORP NEW YORK STATE METROPOLITAN TRANSPORTATION AUTHORITY 4927 MILLION OF SERIES O AND P TRANSIT AND COMMUTER FACILITIES SERVICE CONTRACT REFUNDING BONDS PRICED BY A BEAR STEARNS & CO GROUP INCLUDED IN THE OFFERING ARE 3203 MILLION OF SERIES O TRANSIT FACILITIES BONDS AND 1724 MILLION OF SERIES P COMMUTER FACILITIES BONDS SERIES O BONDS WERE PRICED TO YIELD FROM 375 IN 1995 TO 602 IN 2017 SERIES P BONDS ARE PRICED AS 575 TO YIELD 610 IN 2015 THE OFFERING IS RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P MICHIGAN PUBLIC POWER AGENCY 326 MILLION OF SERIES 1993A BELLE RIVER PROJECT REFUNDING REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD FROM 260 IN 1994 TO 5825 IN 2018 THE BONDS ARE RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P PENNSYLVANIA 987 MILLION OF CERTIFICATES OF PARTICIPATION APPARENTLY WON BY A FIRST BOSTON GROUP FIRST BOSTON IS BELIEVED TO HAVE WON THE CERTIFICATES WITH A BID SETTING THE TRUE INTEREST COST AT APPROXIMATELY 456 YIELDS FOR FORMALLY REOFFERED BONDS WERE SET AT 250 IN 1993 TO 5 IN 1999 THE ISSUE HAS BEEN RATED SINGLEA BY MOODY'S AND SINGLEAMINUS BY S&P CINCINNATI STUDENT LOAN FUNDING CORP 515 MILLION OF SERIES 1986A STUDENT LOAN REVENUE BONDS PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP THE BONDS WHICH ARE DUE DEC 1 2001 ARE PRICED AS 550 AT PAR AND ARE TO YIELD 550 AT THEIR MATURITY THE BONDS ARE RATED SINGLEA1 BY MOODY'S AND ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX FEDERAL NATIONAL MORTGAGE ASSOCIATION 208 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES OFFERED BY SEVERAL DEALERS THE OFFERING SMBS TRUST 218 IS BACKED BY 30YEAR 75 MORTGAGEBACKED SECURITIES BEARS STEARNS & CO OFFERING 1 BILLION OF THE TRUST USED 800000 OF THE SECURITIES TO BACK FANNIE MAE REAL ESTATE MORTGAGE INVESTMENT CONDUIT 199354 DONALDSON LUFKIN & JENRETTE SECURITIES CORP OFFERING 325 MILLION USED 300 MILLION TO BACK REMIC 199353 PAINEWEBBER INC IS OFFERING 300 MILLION KIDDER PEABODY & CO IS OFFERING 200 MILLION MORGAN STANLEY & CO IS OFFERING 100 MILLION AND GOLDMAN SACHS & CO LEHMAN BROTHERS INC AND MERRILL LYNCH & CO EACH ARE OFFERING 50 MILLION FEDERAL NATIONAL MORTGAGE ASSOCIATION 800 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199354 IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 5001 MILLION OF REMIC SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES GOLD 1504 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 199356 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF REMIC SECURITIES SERIES 199352 OFFERED BY PAINEWEBBER INC THE OFFERING IS BACKED BY FANNIE MAE 15YEAR 6 1/2 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REMIC SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 199351 IS BACKED BY PRINCIPALONLY STRIPS FROM STRIPPED MORTGAGEBACKED SECURITIES TRUST 203 WHICH IS IN TURN BACKED BY FANNIE MAE 8 MORTGAGE SECURITIES WESTERN FINANCIAL SAVINGS BANK 250 MILLION OF AUTOMOBILE LOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS THROUGH SOLE UNDERWRITERS DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE 230 MILLION CLASS OF A1 CERTIFICATES WAS PRICED AS 445 AT 99 23/32 TO YIELD 4625 A 65 BASIS POINT SPREAD ABOVE THE WHENISSUED TREASURY TWOYEAR NOTE THE CERTIFICATES WERE RATED TRIPLEA BY MOODY'S AND S&P PRICING DETAILS ON THE SUBORDINATE 20 MILLION CLASS OF A2 CERTIFICATES WEREN'T AVAILABLE THE CERTIFICATES WERE RATED TRIPLEA BY MOODY'S AND S&P BASED ON A 100 INSURANCE GUARANTY PROVIDED BY FINANCIAL SECURITY ASSURANCE INC THE SUBORDINATE CLASS PROVIDED CREDIT SUPPORT FOR THE A1 CERTIFICATES WESTERN FINANCIAL SAVINGS IS A SUBSIDIARY OF WESTCORP EXPORTIMPORT BANK 915 MILLION OF PASSTHROUGH CERTIFICATES GUARANTEED BY THE EXPORTIMPORT BANK OF THE US PRICED BY CHEMICAL SECURITIES INC THE CERTIFICATES ARE BACKED BY PROMISSORY NOTES ISSUED BY TWO BERMUDA SPECIAL PURPOSE CORPORATIONS AILERON FINANCE LTD AND SOBERMAN FINANCE LTD THE CORPORATIONS HAVE LEASED AIRCRAFT TO LUFTFAHRT AKTIENGESELLSCHAFT AN AUSTRIAN AIRLINE THE EXIM BANK GUARANTEED THE PUBLICLY OFFERED CERTIFICATES NOT JUST THE UNDERLYING LOANS AS HAS BEEN THE CASE IN PREVIOUS PUBLIC EXIM BANK TRANSACTIONS THE ISSUE GOVERNMENT EXPORT TRUST 19931 WAS PRICED AS 6 AT PAR AND PAYS QUARTERLY THE YIELD ON A SEMIANNUAL COUPON BASIS IS 604 OR 43 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE CERTIFICATES ARE RATED TRIPLEA BY MOODY'S AND S&P STORAGE EQUITIES INC 575 MILLION OF CUMULATIVE PREFERRED STOCK PRICED THROUGH PAINEWEBBER INC THE 23 MILLION SHARES OF 25ASHARE PREFERRED WERE PRICED WITH A DIVIDEND YIELD OF 92 THE SHARES NONCALLABLE FOR 10 YEARS ARE RATED BA1 BY MOODY'S AND TRIPLEB BY S&P ADVANTA CORP AN OFFERING OF THREE MILLION CLASS B SHARES PRICED AT 3150 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC SAVOY PICTURES ENTERTAINMENT INC AN INITIAL OFFERING OF 365 MILLION COMMON SHARES PRICED AT 1450 EACH THROUGH UNDERWRITERS LED BY ALLEN & CO AMTROL INC AN INITIAL OFFERING OF THREE MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO DELAWARE GROUP DIVIDEND & INCOME FUND INC AN INITIAL OFFERING OF 13 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO UNIVERSAL CORP AN OFFERING OF 26 MILLION COMMON SHARES PRICED AT 27 EACH THROUGH UNDERWRITERS LED BY DILLON READ & CO REPUBLIC OF FINLAND SOVEREIGN 500 MILLION OF 8 EUROBONDS DUE APRIL 7 2003 AT ISSUE PRICE 99 1/8 VIA CREDIT SUISSE FIRST BOSTON LTD AND WARBURG SECURITIES LTD REOFFERED AT 9745 TO YIELD 839 A SPREAD OF 60 BASIS POINTS ABOVE COMPARABLE UK GOVERNMENT BOND FEES 2 LANDESBANK SCHLESWIGHOLSTEIN GIROZENTRALE LUXEMBOURG BRANCH GERMAN AGENCY 250 MILLION OF 4 5/8 EUROBONDS DUE APRIL 26 1996 AT ISSUE PRICE 101 1/8 VIA DAIWA EUROPE LTD AND UBS PHILLIPS & DREW SECURITIES REOFFERED AT 9995 TO YIELD 464 A MARGIN OF 28 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1 3/8 DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT 200 MILLION MARKS OF REVERSED FLOATINGRATE EURONOTES DUE APRIL 15 2003 AT ISSUE PRICE 10095 VIA DEUTSCHE BANK AG BONDS OFFER COUPON OF 75 FOR FIRST TWO YEARS AND THEREAFTER 1225 MINUS SIXMONTH LONDON INTERBANK OFFERED RATE FOR MARKS COUPON CAN'T FALL BELOW ZERO GUARANTOR DEUTSCHE BANK AG FEES 145 DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT 300 MILLION CANADIAN DOLLARS OF 7 1/8 EUROBONDS DUE APRIL 20 1998 AT ISSUE PRICE 100193 VIA DEUTSCHE BANK AG LONDON REOFFERED AT 98568 TO YIELD 748 A MARGIN OF ABOUT 50 BASIS POINTS ABOVE COMPARABLE GOVERNMENT ISSUE AT LAUNCH GUARANTOR DEUTSCHE BANK AG FEES 1 7/8 CREDIT LOCAL DE FRANCE FRANCE 500 MILLION FRENCH FRANCS OF REVERSED FLOATINGRATE EURONOTES DUE APRIL 14 2000 AT ISSUE AND REOFFER PRICE PAR VIA CREDIT COMMERCIAL DE FRANCE BONDS OFFER COUPON OF 9 IN FIRST YEAR AND THEREAFTER 1375 LESS SIXMONTH PARIS INTERBANK OFFERED RATE FOR FRANCS COUPON CAN'T FALL BELOW ZERO FEES 035 COMMERZBANK OVERSEAS FINANCE NV CURACAO GERMAN PARENT 150 BILLION LIRE OF 1080 EUROBONDS DUE APRIL 14 2000 AT ISSUE PRICE 101 3/4 VIA IMI BANK LUXEMBOURG SA BONDS YIELD 1083 AFTER DEDUCTING FULL FEES OF 1 7/8 GUARANTOR COMMERZBANK AG 9303190118 930319 ECONOMY US CANADA AND MEXICO QUICKLY CLASH OVER HOW TO PUT TEETH IN TRADE PACT BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US CANADA AND MEXICO BEGAN NEGOTIATIONS TO SET UP NORTH AMERICAN LABOR AND ENVIRONMENTAL BOARDS AND DIVISIONS AMONG THE NATIONS BECAME EVIDENT IMMEDIATELY WE ENVISION A RATHER NOVEL AND GROUNDBREAKING TYPE OF ARRANGEMENT A SENIOR US TRADE OFFICIAL SAID AFTER THE TWODAY MEETING I'M NOT CERTAIN MY TWO COLLEAGUES SHARE THAT AMBITION YET THE US IS WORKING ON A PLAN IN WHICH IT COULD USE TRADE SANCTIONS AS AN ENFORCEMENT VEHICLE BUT CANADIAN NEGOTIATOR JOHN WEEKES CALLED TRADE SANCTIONS A MISTAKE THE US ALSO IS PUSHING AN ADDITIONAL AGREEMENT TO LIMIT UNEXPECTED SURGES IN IMPORTS BUT CANADA AND MEXICO BELIEVE THAT PROVISIONS IN THE NORTH AMERICAN FREE TRADE AGREEMENT ALREADY COVER THOSE CONCERNS THERE REALLY ISN'T A PROPER UNDERSTANDING OF HOW THE PROTECTIONS WORK IN THE US MR WEEKES SAID UNDER THE FREE TRADE PACT WHEN IMPORTS FROM MEXICO OR CANADA THREATEN SERIOUS INJURY TO US COMPANIES THE US CAN REIMPOSE FOR AS LONG AS FOUR YEARS TARIFFS THAT EXISTED BEFORE THE AGREEMENT TOOK EFFECT THE US MAY SEEK MECHANISMS FOR ASSURING COMPANIES THEY CAN READILY USE THOSE PROCEDURES THE US TRADE OFFICIAL SAID PRESIDENT CLINTON SAID DURING THE PRESIDENTIAL CAMPAIGN HE WOULD ENDORSE THE NORTH AMERICAN TRADE AGREEMENT ONLY IF HE COULD NEGOTIATE ADDITIONAL SAFEGUARDS AGAINST IMPORTS ALONG WITH TOUGH ENVIRONMENTAL AND LABOR BOARDS NEITHER CANADA NOR MEXICO THOUGHT THE PROVISIONS WERE NECESSARY BUT BOTH COUNTRIES AGREED TO THE TALKS TO WIN THE NEW ADMINISTRATION'S APPROVAL NEVERTHELESS MEXICO AND CANADA REMAIN CONCERNED THAT THE US WILL USE THE NEGOTIATIONS TO TRY TO INSERT PROVISIONS THAT PROTECT US INDUSTRIES WHATEVER NEGOTIATIONS OCCUR WON'T BE AN OPENING TO PROTECTIONISM VOWED HERMINIO BLANCO MEXICO'S NEGOTIATOR AT THE SAME TIME AS IT MUST CONTEND WITH THOSE FEARS THE CLINTON ADMINISTRATION ALSO MUST NEGOTIATE WITH CONGRESS WHICH IS URGING THE WHITE HOUSE TO PUSH FOR LABOR AND ENVIRONMENTAL BOARDS WITH TOUGH ENFORCEMENT POWERS LAST WEEK THE ADMINISTRATION SIGNALED IT WAS WILLING TO ACCEPT WEAK COMMISSIONS THREE PEOPLE AND A FAX MACHINE SEVERAL ADMINISTRATION OFFICIALS CALLED THEM BUT FOLLOWING A HARSH RECEPTION ON CAPITOL HILL THE ADMINISTRATION SHELVED PARTS OF ITS BARGAINING PLAN AND PROPOSES TO TAKE A TOUGHER LINE TRADE OFFICIALS SAID ADMINISTRATION SUPPORT IS COALESCING AROUND THE OUTLINES OF A PLAN ADVANCED BY SEN MAX BAUCUS CHAIRMAN OF THE FINANCE COMMITTEE'S INTERNATIONAL TRADE SUBCOMMITTEE UNDER THE MONTANA DEMOCRAT'S PLAN THE BOARDS WOULD HAVE THE POWER TO INVESTIGATE COMPLAINTS THAT A COMPANY IN SAY MEXICO WAS ABLE TO PRODUCE ALUMINUM CHEAPLY AND EXPORT IT TO THE US BECAUSE IT FAILED TO MEET MEXICO'S CLEANAIR STANDARDS IF MEXICO IGNORED THE COMMISSION'S FINDINGS THE US GOVERNMENT COULD IMPOSE PUNITIVE TARIFFS ON THE ALUMINUM COMPANY'S EXPORTS TO THE US THE BOARDS COULD INVESTIGATE SIMILAR COMPLAINTS ABOUT US AND CANADIAN COMPANIES THE CLINTON ADMINISTRATION WOULD AMEND THE BAUCUS PLAN TRADE OFFICIALS SAID BY DENYING SUBPOENA POWERS TO THE BOARDS SUCH SUBPOENAS WOULD BE ILLEGAL UNDER US LAW THE OFFICIALS SAID AND WOULD POSE SIMILAR PROBLEMS IN MEXICO AND CANADA BUT THE ADMINISTRATION IS LOOKING FOR OTHER WAYS TO GIVE THE BOARDS INDEPENDENT INVESTIGATIVE POWERS THEN IN CASES OF SYSTEMATIC AND PERSISTENT VIOLATIONS BY A COMPANY IN ONE COUNTRY THE OTHER TWO COUNTRIES WOULD BE ABLE TO LEVY TRADE SANCTIONS THE US WANTS AN AGREEMENT WITH TEETH THE SENIOR US OFFICIAL SAID NOT FANGS IN A LUNCHEON SPEECH CAROL BROWNER ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR SAID SHE WAS VERY PLEASED WITH THE GENERAL OUTLINE OF MR BAUCUS'S PROPOSAL SHE SAID AN ENVIRONMENTAL COMMISSION SHOULD HAVE AN INDEPENDENT EXPERT STAFF AND SHOULD PUBLICIZE ANY FAILURE TO COMPLY WITH ENVIRONMENTAL STANDARDS MR BLANCO MEXICO'S REPRESENTATIVE SAID NEGOTIATORS FROM THE THREE NATIONS WILL NEXT MEET IN OTTAWA ON APRIL 2 TO WORK OUT THE MECHANICS OF THE NEGOTIATIONS ON APRIL 12 IN MEXICO CITY THE THREE NATIONS ARE EXPECTED TO OFFER AND DISCUSS DETAILED PLANS FOR THE NEW BOARDS NEGOTIATORS EXPECT TO MEET EVERY OTHER WEEK AFTER THAT AND HOPE TO WRAP UP AN AGREEMENT BY MIDJUNE 9303190117 930319 MARKETING & MEDIA CHRYSLER TO LAUNCH BIG SEDANS BUT SAYS THEY'RE NOT BOATS' HIGHLAND PARK MICH CHRYSLER CORP IS LAUNCHING A PAIR OF LUXURY SEDANS THE NEW YORKER AND THE LHS WITH AN ATTACK ON A GENERATION OF DETROIT'S BIG SOFAINSPIRED LUXURY CRUISERS AS FAR AS WE'RE CONCERNED BOAT' BARGE' AND YACHT' ARE ONCE AGAIN NAUTICAL TERMS READS A CHRYSLER PRINT AD THAT WILL BEGIN RUNNING IN LATE APRIL AT LONG LAST THE FLOATING WALLOWING DIVING LUXOBOAT HAS BEEN TORPEDOED READS ANOTHER AD IN A THIRD AD CHRYSLER IDENTIFIES ITSELF WITH THE HIGHEND OFFERINGS FROM EUROPE AND JAPAN THE CHRYSLER NEW YORKER HAS A HUGE TRUNK BUT IT DOESN'T COME WITH A LOT OF DETROIT BAGGAGE ALL OF THE AD'S WERE CREATED BY BOZELL INC CHRYSLER IS BETTING THAT THE LONGER PLUSHER NEW YORKER AND LHS VERSIONS OF THE NEW LH TRIO OF SEDANS THE CHRYSLER CONCORDE EAGLE VISION AND DODGE INTREPID WILL RIVAL VEHICLES OFFERED BY ITS DETROIT COMPETITORS CHRYSLER'S NEWEST CARS ARE ROOMY ENOUGH TO COMPETE WITH THE LARGEST AMERICAN CARS AND SPORTY ENOUGH TO COMPETE WITH HIGHEND EUROPEAN AND JAPANESE SEDANS CHRYSLER SAYS THE NEW YORKER AND LHS CARS WILL SELL FOR JUST UNDER 30000 FOR A WELLEQUIPPED VEHICLE COMPARED WITH ALMOST 19000 FOR A WELLEQUIPPED SMALLER LH SEDAN THE AUTO MAKER IS AIMING THE TWO LUXURY CARS AT THE SAME MARKET STAKED OUT BY GENERAL MOTORS CORP'S PONTIAC BONNEVILLE THE GAP BETWEEN HIGH PERFORMANCE IMPORTS AND LARGE TRADITIONAL CADILLACS AND LINCOLNS BUT PONTIAC IS MARKETING THE BONNEVILLE AS AN ALTERNATIVE TO THE JAPANESE AND EUROPEAN LUXURY CARS CHRYSLER ON THE OTHER HAND IS SLAMMING ITS DETROIT RIVALS WITH THE NEW OFFERING AND PLANNED PRODUCTION INCREASES ON THE ORIGINAL THREE LH SEDANS CHRYSLER HOPES THAT BY NEXT YEAR IT WILL INCREASE ITS PRODUCTION OF ALL LH'S TO 350000 ANNUALLY UP FROM 180000 THIS YEAR THE SLEEK LHS AND THE NEW NEW YORKER ARE A MARKED DEPARTURE FROM SOME OF CHRYSLER'S PAST OFFERINGS SUCH AS THE IMPERIAL THE NEW CARS SPORT A DIFFERENT STYLE FROM THE ROUNDED AERODYNAMIC LOOK OF COMPETING MODELS WHAT'S MORE THE NEW CHRYSLERS SPORT A DRAMATIC ROOF LINE THAT IN THE REAR AT LEAST HAS A CLASSIC LOOK OF SOME OLDER JAGUARS 9303190116 930319 FOREIGN EXCHANGE DOLLAR DECLINES AMID DISAPPOINTMENT ON SCOPE OF CUT IN GERMAN INTEREST RATES BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DISAPPOINTED THAT A CUT IN GERMAN INTEREST RATES DIDN'T QUITE MEET MARKET HOPES INVESTORS UNLOADED DOLLARS THURSDAY WAVES OF SELLING PUSHED THE DOLLAR SHARPLY LOWER ACROSS THE BOARD A LATE ROUND OF LARGELY TECHNICAL SELLING ALSO PUSHED THE DOLLAR TO A NEW POSTWORLD WAR II LOW AGAINST THE YEN DEALERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16415 MARKS DOWN FROM 16615 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11570 YEN OFF FROM 11720 YEN WEDNESDAY AND BELOW THE PREVIOUS HISTORIC LOW OF 11594 YEN SET FEB 22 STERLING SURGED TO 14865 UP MORE THAN THREE CENTS ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 16438 MARKS AND AT 116 YEN WHAT WE'RE SEEING TODAY IS THE LIQUIDATION OF STAGNANT POSITIONS SAID JOHN NELSON DIRECTOR OF FOREIGN EXCHANGE AT BARCLAYS BANK PLC THE DOLLAR SPENT THE PAST TWO WEEKS FLOATING NEAR THE TOP OF ITS RECENT TRADING RANGE AS INVESTORS BUILT IN EXPECTATIONS OF A CUT IN GERMAN INTEREST RATES AT THURSDAY'S MEETING OF THE DEUTSCHE BUNDESBANK'S CENTRAL BANK COUNCIL DEALERS SAID THE BUNDESBANK TRIMMED ONLY ITS DISCOUNT RATE EASING IT TO 75 FROM 8 IT LEFT ITS LOMBARD RATE AT 9 AND SAID NOTHING ABOUT ITS MONEY MARKET INTERVENTION RATE WHICH CURRENTLY STANDS AT 825 THE MOVE WAS IF ANYTHING A BIT LESS THAN WHAT MOST PLAYERS HAD BEEN EXPECTING ALTHOUGH THE CUT IN THE DISCOUNT RATE MATCHED MOST FORECASTS MANY PARTICIPANTS HAD HOPED FOR A CUT IN THE LOMBARD RATE AS WELL DEALERS SAID THAT WAS A TERRIBLE DISAPPOINTMENT SAID ALBERT SORIA FOREIGN EXCHANGE MANAGER AT KANSALLISOSAKEPANKKI THE LOMBARD RATE FUNCTIONS AS THE EFFECTIVE CEILING FOR GERMAN MONEY MARKET RATES AND THUS ISN'T AS IMPORTANT WHEN RATES ARE FALLING AS THE DISCOUNT RATE WHICH SETS THE FLOOR EVEN SO DEALERS SAID THE LACK OF A LOMBARD CUT WAS ENOUGH TO SEND MANY INVESTORS SCRAMBLING TO DUMP THEIR DOLLARS THURSDAY WE'RE JUST SEEING PROFITTAKING SAID WILLIAM ORSINI SENIOR MANAGER AT BANK OF MONTREAL ALTHOUGH MOST PLAYERS SEEM CERTAIN THE DOLLAR IS HEADED HIGHER LATER THIS YEAR AS GERMAN RATES FALL FURTHER AND THE US ECONOMY RECOVERS DEALERS SAID THE DOLLAR'S STAGNATION OVER THE PAST FEW WEEKS WAS A SIGN THE MARKET WAS OVERLOADED ON DOLLARS WHAT YOU'VE HAD IS A LOT OF MEDIUMTERM SELLERS COMING IN AND SELLING THE DOLLAR SAID MR SORIA IT HASN'T CHANGED THE OUTLOOK FOR THE DOLLAR BUT FOR LESS PATIENT PLAYERS DEALERS SAID THURSDAY'S MARKET PROVIDED NOTHING BUT BEARISH SIGNALS EVEN BEFORE THE BUNDESBANK SENT THE DOLLAR REELING THE POUND HAD BEEN GAINING ON THE DOLLAR BOOSTED BY AN UNEXPECTED DECLINE IN UK UNEMPLOYMENT UNEMPLOYMENT IN THE UK FELL 22000 IN FEBRUARY TO 2971000 WORKERS THE FIRST DROP IN THREE YEARS COMING IN THE WAKE OF UNEXPECTED GAINS IN RETAIL SALES AND TUESDAY'S BUDGET STATEMENT WHICH REASSURED INVESTORS BY KEEPING MONETARY POLICY STEADY THE UNEMPLOYMENT NEWS SENT THE POUND SURGING LATE THURSDAY IN NEW YORK STERLING WAS QUOTED AT 24400 MARKS UP SHARPLY FROM 24133 MARKS LATE WEDNESDAY STERLING IS PROBABLY THE ONLY EUROPEAN CURRENCY RIGHT NOW WHOSE INTEREST RATES ARE NOT GOING TO COME LOWER SAID MR NELSON AS A RESULT INVESTORS ARE LOADING UP ON POUNDS DEALERS SAID 9303190115 930319 REED ELSEVIER REPORTS PROFIT ROSE 19 IN '92 NEWLY MERGED PUBLISHER SAYS '93 OUTLOOK HINGES ON POUND'S STABILITY BY THOMAS L WAITE SPECIAL TO THE WALL STREET JOURNAL LONDON ANGLODUTCH PUBLISHER REED ELSEVIER WHICH WAS FORMED JAN 1 FROM REED INTERNATIONAL PLC AND ELSEVIER NV SAID ITS PROFORMA PRETAX PROFIT WAS 412 MILLION 5982 MILLION IN 1992 UP 19 FROM 1991 PROFORMA RESULTS THE PROFORMA FIGURE REFLECTS THE RESULTS THE COMPANIES WOULD HAVE ACHIEVED HAD THEY BEEN COMBINED THROUGHOUT THE YEAR REED SAID ITS OWN PRETAX PROFIT FOR THE NINE MONTHS ENDED DEC 31 1992 WAS UP 10 TO 1371 MILLION AS A SEPARATE COMPANY REED OPERATED ON A FINANCIAL YEAR THAT ENDED MARCH 31 WITH ITS 1993 RESULTS IT WILL SHIFT TO A CALENDAR FINANCIAL YEAR THE SAME AS ELSEVIER REED SAID ITS PRETAX PROFIT FOR CALENDAR 1992 WAS 243 MILLION UP 28 FROM 1991 REED DECLARED A FINAL DIVIDEND OF 725 PENCE GIVING IT A NINEMONTH DIVIDEND OF 1275 PENCE UP 6 FROM A YEAR EARLIER ELSEVIER'S OPERATING PROFIT BEFORE EXTRAORDINARY ITEMS ROSE 17 TO 4438 MILLION GUILDERS 2376 MILLION FROM 3803 MILLION GUILDERS ELSEVIER TOOK A 99 MILLION GUILDER EXTRAORDINARY CHARGE IN 1992 COMPARED WITH A GAIN OF 45 MILLION GUILDERS IN 1991 AS A RESULT NET INCOME WAS UP JUST 13 TO 4339 MILLION GUILDERS FROM 3848 MILLION ELSEVIER'S PRETAX PROFIT ROSE 19 TO 6182 MILLION GUILDERS FROM 5181 MILLION THE AMSTERDAMBASED PUBLISHER ANNOUNCED A DIVIDEND INCREASE FOR 1992 TO 261 GUILDERS FROM 225 GUILDERS IN 1991 NIGEL STAPLETON CHIEF FINANCIAL OFFICER OF REED ELSEVIER SAID THE COMBINED GROUP'S PRETAX PROFIT OF 412 MILLION EXCEEDED THE GROUP'S SEPTEMBER FORECAST OF 430 MILLION IF A 21 MILLION EXTRAORDINARY CHARGE IS ADDED BACK IN UNDER ACCOUNTING RULES USED WHEN THE FORECAST WAS MADE THE CHARGE WOULD HAVE BEEN TAKEN AFTER TAXES LOOKING AHEAD TO 1993 MR STAPLETON SAID WHILE WE ARE RETICENTLY DOWNBEAT ABOUT ECONOMIC CONDITIONS THAT DOESN'T MEAN WE ARE DOWNBEAT ABOUT THE PROSPECTS OF REED ELSEVIER AS LONG AS STERLING'S EXCHANGE RATE REMAINS ABOUT THE SAME THROUGHOUT THE YEAR HE SAID OUR PROFITS SHOULD LOOK PRETTY GOOD MR STAPLETON SAID THAT WITH 70 OF REED ELSEVIER'S PRETAX PROFIT COMING IN CURRENCIES OTHER THAN THE POUND FOREIGNEXCHANGE FLUCTUATIONS WILL HAVE A LARGE EFFECT ON THE GROUP'S PROFIT IN STERLING TERMS HOWEVER HE SAID REED ELSEVIER DOESN'T BUY CURRENCY HEDGES WHICH HE TERMED A FORM OF SPECULATION INSTEAD HE SAID THE PUBLISHER MERELY ENSURES THAT THE COSTS AND REVENUES AT AN INDIVIDUAL OPERATION ARE IN THE SAME CURRENCY MR STAPLETON SAID THE GROUP WAS SEEING GENUINE SIGNS OF RECOVERY IN THE US BUT HE NOTED CONTINUED SURPLUS CAPACITY IN THE HOTEL AND AIRLINES INDUSTRIES IN WHICH REED ELSEVIER IS INVOLVED THROUGH ITS TRADE PUBLICATIONS ALSO THE GROUP'S CAHNERS DIVISION IS THE LARGEST BUSINESSTOBUSINESS PUBLISHER IN THE US AND MR STAPLETON SAID BUSINESS ADVERTISING HASN'T PICKED UP AS CONSUMER ADVERTISING HAS 9303190114 930319 THURSDAY'S MARKETS BONDS STOCKS RALLY AS INFLATION FEARS EBB BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES JUMPED AS INFLATION FEARS WANED SPARKING A STOCKMARKET RALLY THE DOLLAR FELL SETTING A POSTWORLD WAR II LOW AGAINST THE YEN THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 3890 POINTS TO 346564 AND STANDARD & POOR'S 500STOCK INDEX ADVANCED 358 TO 45189 BUT THE NASDAQ COMPOSITE INDEX EDGED UP ONLY 001 TO 68741 THE BOND MARKET BROKE OUT OF ITS RECENT TORPOR WITH THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE SINKING TO 678 HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY SAID BOND TRADERS WERE ENCOURAGED THAT THE REPORT ON THE TRADE DEFICIT FOR JANUARY SHOWED DECLINES IN BOTH IMPORTS AND EXPORTS SUGGESTING SLOWER ECONOMIC GROWTH AT HOME AND ABROAD MR JOHNSON ADDED THAT BOND PRICES ALSO RESPONDED TO A CUT IN A KEY GERMAN INTEREST RATE TO 750 FROM 8 FURTHER BOLSTERING BOND PRICES HE SAID ARE SIGNS THAT PRESIDENT CLINTON'S ECONOMIC STIMULUS PLANS MAY FACE SOME TOUGH OPPOSITION FROM CONSERVATIVE DEMOCRATS IT'S A RELIEF THE BOND MARKET IS SHAKING OFF ITS INFLATION FEARS MR JOHNSON SAID BUT IT'S PROBABLY ONLY TEMPORARY HE ESTIMATES THAT CONSUMER PRICES WILL INCREASE 36 THIS YEAR COMPARED WITH 31 LAST YEAR THAT'S NOT HIGH INFLATION BUT HIGHER INFLATION MR JOHNSON SAID WHICH WILL WEAKEN BOND PRICES AND NUDGE UP INTEREST RATES AND ALL THAT LIMITS THE UPSIDE POTENTIAL FOR STOCKS HE ADDED BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY ARGUES STOCK PRICES ARE CLIMBING NOT JUST BECAUSE OF DECLINING INTEREST RATES BUT BECAUSE INVESTORS ARE STILL PESSIMISTIC ABOUT THE CLINTON ECONOMIC POLICIES STOCK PRICES OFTEN CLIMB A WALL OF WORRY WHICH MEANS RISING IN REACTION TO NEGATIVE SENTIMENT BUT WE'RE GETTING TO THE POINT WHERE RATES AND NEGATIVE SENTIMENT ALONE ARE NOT ENOUGH TO DRIVE THE MARKET HIGHER MR WIEN SAID WE'RE GOING TO NEED TO SEE SOME CLEAR SIGNS THAT A SUSTAINED RECOVERY IS UNDER WAY HE EXPECTS TO SEE SOME OF THOSE SIGNS THIS SPRING IN IMPROVING HOUSE AND AUTO SALES AND A PICKUP IN GROSS DOMESTIC PRODUCT EVENTUALLY INVESTORS WILL BECOME COMFORTABLE THAT THE CLINTON REIGN DOES NOT SIGNAL THE END OF ECONOMIC PROSPERITY IN THE US HE SAID WHEN THAT BECOMES CLEAR THE MARKET WILL MAKE SIGNIFICANT NEW HIGHS JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SAID THE PLACE TO BE WILL CONTINUE TO BE ECONOMICALLY SENSITIVE STOCKS THAT WILL RESPOND MORE STRONGLY TO GAINS IN THE ECONOMY WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 198 TO 9987 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2405 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1254 ISSUES ROSE AND 652 FELL BOND PRICES SURGED THE 30YEAR TREASURY BOND ROSE NEARLY 1 1/8 POINT OR 1125 FOR EACH 1000 FACE AMOUNT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16415 MARKS AND 11570 YEN COMPARED WITH 16615 MARKS AND 11720 YEN WEDNESDAY 9303190112 930319 WORLD MARKETS EUROPEAN MARKETS SHRUG AS GERMANY WHITTLES AT INTEREST RATES STOCK PRICES JUMP IN TOKYO BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FINANCIAL MARKETS ACROSS EUROPE FOR THE MOST PART SHRUGGED AT THE GERMAN BUNDESBANK'S HALFPOINT DISCOUNT RATE CUT WHICH HAD BEEN WIDELY ANTICIPATED MEANWHILE IN TOKYO STRONG BUYING IN LAGGARD SECTORS IGNITED THE BROADER MARKET AND SENT THE NIKKEI INDEX UP 31 TO ITS HIGHEST CLOSING LEVEL SINCE SEPT 10 FOREIGN INVESTORS AND JAPANESE INVESMENT TRUST FUNDS LED THE RALLY FRANKFURT STOCKS ENDED TRADING JUST BEFORE THE GERMAN CENTRAL BANK'S MONETARY EASING WAS ANNOUNCED WITH THE DAX 30STOCK INDEX FIRMING 1111 POINTS TO 169619 IN AFTERHOURS TRADING THE FUTURES CONTRACT ON THE DAX WAS QUOTED LATE IN THE EUROPEAN DAY AT 1715 UP JUST THREE POINTS FROM THE CLOSE THE PREVIOUS DAY WHILE THE BUNDESBANK REDUCED TO 75 FROM 8 ITS DISCOUNT RATE WHICH OFFERS BANKS A LIMITED AMOUNT OF INEXPENSIVE REFINANCING UNDER FIXED BORROWING QUOTAS IT DIDN'T TINKER WITH THE LOMBARD RATE WHICH OFFERS UNLIMITED BORROWING AND IS MORE CLOSELY WATCHED BY THE CREDIT MARKETS BECAUSE IT SERVES AS A CEILING FOR SHORTTERM MONEYMARKET RATES THE MOVE WAS VERY MUCH WHAT EVERYONE EXPECTED SAID KLAUS HOLSCHUH A MARKET ECONOMIST AT COMMERZBANK IN FRANKFURT THE BUNDESBANK IS CLEARLY FOLLOWING A POLICY OF VERY SMALL STEPS AND THAT'S WHAT WE HAVE TO ASSUME THEY'LL CONTINUE TO DO OVER THE COMING MONTHS SOME TRADERS INTERPRETED THE BUNDESBANK'S RELATIVELY MODEST RATE CUT AS A SIGN THAT THE CENTRAL BANK WASN'T PLEASED WITH THE RESULTS OF THE GERMAN GOVERNMENT'S SOCALLED SOLIDARITY PACT ON TAX INCREASES WAGE RESTRAINT AND FISCAL PROBITY REACHED LAST WEEKEND IN LONDON SHARE PRICES EDGED LOWER THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 102 POINTS TO 28797 THE FT 30STOCK INDEX EASED 17 POINTS TO 22473 VOLUME WAS 7058 MILLION SHARES COMPARED WITH 6733 MILLION SHARES A DAY EARLIER LONDON INVESTORS HAD LITTLE REACTION TO GERMANY'S RATE REDUCTION AND TO BRITAIN'S FIRST DECLINE IN UNEMPLOYMENT SINCE APRIL 1990 INSTEAD THE FOCUS REMAINED ON THE BRITISH BUDGET PROPOSAL ITS EFFECT ON THE STOCK MARKET AND THE STING OF DEFERRED TAX INCREASES ON CONSUMER SENTIMENT EQUITIES ALSO WERE PUSHED DOWN BY THE STRONG POUND STERLING AND RESULTING BEARISHNESS FOR BIG EXPORT EARNERS IN PARIS WHERE STOCK PRICES SLIPPED DEALERS SAID ONLY A HUGE DROP IN GERMAN INTEREST RATES WOULD HAVE BEEN CAPABLE OF LIFTING THE MARKET WHICH IS FIRMLY FOCUSED ON PARLIAMENTARY ELECTIONS TO BE HELD SUNDAY WE SAW QUITE A NICE RISE DURING THE FIRST TWO MONTHS OF THE YEAR SAID XAVIER FLEURY AN ANALYST AT SOCIETE GENERALE OVER THE SHORT TERM THE MARKET CAN'T HELP BUT CONSOLIDATE AMSTERDAM STOCKS THOUGH GOT A BOOST FROM A DUTCH RATE CUT AND FROM THE GERMAN MONETARY EASING WHICH ALSO SPURRED MILAN AND MADRID PRICES HIGHER YET IN STOCKHOLM SHARE PRICES SLIPPED AS INVESTORS WERE DISAPPOINTED THE GERMAN REDUCTION WASN'T BIGGER IN TOKYO THE NIKKEI 225STOCK INDEX WHICH JUMPED 20507 POINTS TUESDAY SURGED 55453 TO 1872790 ON FRIDAY THE NIKKEI FELL 3251 POINTS TO CLOSE THE MORNING SESSION AT 1869539 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 650 MILLION SHARES UP SHARPLY FROM 3576 MILLION SHARES ON WEDNESDAY GAINERS SWAMPED LOSERS 933144 TRADING COMPANIES WERE AMONG THE BIGGEST GAINERS BROKERAGE FIRMS AND OTHER FINANCIAL ISSUES SAW BRISK BUYING SINCE LAGGING BEHIND DURING THE NIKKEI'S 12 CLIMB IN THE PAST TWO WEEKS THE NIKKEI ON THURSDAY MOVED BETWEEN 1823437 AND 1878830 GAINING SHARPLY IN THE MORNING SESSION BUT SPENDING THE AFTERNOON BOBBING AT HIGHER LEVELS AS PROFITTAKING SET IN IN OTHER ASIAN AND PACIFIC MARKETS SYDNEY STOCKS RETREATED AFTER STRONG GAINS IN THE TWO PREVIOUS SESSIONS AUSTRALIAN STOCKS WERE PRESSURED BY THE PREVIOUS DAY'S DECLINES IN LONDON AND NEW YORK AND WEREN'T HELPED MUCH BY DATA SHOWING THAT AUSTRALIA'S ECONOMY SLIGHTLY EXCEEDED EXPECTATIONS BY EXPANDING 07 IN THE QUARTER ENDED DEC 31 THE FIFTH CONSECUTIVE QUARTER OF MODERATE GROWTH IN HONG KONG SHARES ROSE ON RELIEF THAT CHINA DIDN'T ANNOUNCE HARSH NEW STRATEGIES TO UNDERMINE THE BRITISH COLONY IN THE SINOBRITISH ROW ABOUT PROPOSED DEMOCRATIC REFORMS AMONG CORPORATE DEVELOPMENTS IN LONDON REED ELSEVIER JUMPED 13 PENCE OR 2 TO 656 PENCE 953 THE ANGLODUTCH PUBLISHER FORMED JAN 1 FROM REED INTERNATIONAL AND ELSEVIER SAID PRETAX PROFIT WOULD HAVE TOTALED 412 MILLION 5982 MILLION IN 1992 HAD THE COMBINATION EXISTED THROUGHOUT THE YEAR UP 19 FROM PROFORMA 1991 RESULTS REED'S OWN PRETAX PROFIT FOR THE NINE MONTHS ENDED DEC 31 ROSE 10 TO 1371 MILLION RESULTS WILL BE REPORTED ON A CALENDARYEAR BASIS GUINNESS PLUMMETED 17 OR 35 TO 468 THE BREWER AND DISTILLER'S 1992 PRETAX PROFIT DECLINED 12 TO 795 MILLION AT THE LOW END OF ANALYSTS' ESTIMATES BECAUSE OF A LARGE RESTRUCTURING CHARGE AND AN 18 DECLINE IN PROFIT FROM GUINNESS'S 25 STAKE IN THE FRENCH LUXURYPRODUCTS CONCERN LVMH MOET HENNESSY LOUIS VUITTON THE DIVIDEND WAS RAISED 97 TO 1185 PENCE A SHARE LARGER THAN MANY PREVIOUS MARKET ESTIMATES IN FRANKFURT BAYERISCHE MOTOREN WERKE FINISHED UNCHANGED AT 478 MARKS 28761 THOUGH 1992 PROFIT SLIPPED 73 TO 726 MILLION MARKS 4368 MILLION THE AUTO MAKER SAID IT WOULD MAINTAIN ITS DIVIDENDS AT 1250 MARKS AN ORDINARY SHARE AND 1350 MARKS A PREFERRED SHARE ALSO BMW CHAIRMAN EBERHARD V KUENHEIM WILL RETIRE MAY 13 AND BE SUCCEEDED BY A MANAGEMENT BOARD MEMBER BERND PISCHETSRIEDER BASF ROSE 210 TO 23670 THE CHEMICAL COMPANY'S 1992 CASH FLOW EARNINGS PLUS DEPRECIATION ALLOWANCES AND OTHER CHARGES FELL 66 TO 445 BILLION MARKS CAPITAL GOODS INVESTMENTS DROPPED 14 TO 415 BILLION MARKS RESEARCH AND DEVELOPMENT SPENDING EASED 07 TO 205 BILLION MARKS PERSONNEL COSTS EDGED DOWN 08 TO 1171 BILLION MARKS BASF ALSO PREDICTED A DECLINE IN FIRSTQUARTER PRETAX PROFIT FROM THE YEAREARLIER 473 MILLION MARKS DESPITE EFFORTS TO CUT FIXED COSTS 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 9303190111 930319 TECHNOLOGY & MEDICINE CRAY RESEARCH LOSES BIG JOB WITH AGENCY BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL IN A PAINFUL SETBACK FOR CRAY RESEARCH INC THE DEPARTMENT OF ENERGY CANCELED A PLANNED 72 MILLION JOINT PROJECT TO HELP THE COMPANY DEVELOP SOFTWARE FOR ITS NEW MASSIVELY PARALLEL PROCESSING SUPERCOMPUTER THE DECISION WHICH REVERSED A PRELIMINARY AGREEMENT SIGNED IN THE WANING MONTHS OF THE BUSH ADMINISTRATION WAS A VICTORY FOR RIVAL SUPERCOMPUTER MANUFACTURERS WHO HAD PROTESTED THAT THE PLAN WOULD HAVE PUT THEM AT A SEVERE COMPETITIVE DISADVANTAGE IN THE RACE TO MAKE THE LARGELY EXPERIMENTAL TECHNOLOGY COMMERCIALLY VIABLE BUT CRAY RESEARCH OFFICIALS COMPLAINED THAT THE REVERSAL FLIES IN THE FACE OF PRESIDENT CLINTON'S DESIRE TO PROMOTE PARTNERSHIPS BETWEEN THE GOVERNMENT AND PRIVATE INDUSTRY TO ACCELERATE TECHNOLOGY DEVELOPMENT THE DOE DECISION SETS A CHILLING PRECEDENT FOR ANY HIGHTECHNOLOGY COMPANY THAT MIGHT WANT TO SUBMIT A SIGNIFICANT AND UNIQUE PROPOSAL TO THE DOE TECHNOLOGY TRANSFER PROGRAM WROTE ROBERT EWALD A CRAY RESEARCH EXECUTIVE VICE PRESIDENT IN A MEMORANDUM TO EMPLOYEES THE DECISION WAS PARTICULARLY IRONIC IN THAT JOHN ROLLWAGEN CRAY RESEARCH'S FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND THE MAN LARGELY RESPONSIBLE FOR NEGOTIATING THE AGREEMENT IN THE FIRST PLACE HAS SINCE BEEN NOMINATED AS THE CLINTON ADMINISTRATION'S SECOND HIGHEST OFFICIAL IN THE COMMERCE DEPARTMENT MR ROLLWAGEN'S SECRETARY SAID HE WAS ASKED NOT TO COMMENT ON THE MATTER BECAUSE HE HASN'T YET BEEN CONFIRMED BY THE SENATE A DOE SPOKESMAN SAID THE AGENCY TRIED TO DEAL WITH CRAY RESEARCH HONORABLY BUT I UNDERSTAND IF THEY'RE DISAPPOINTED HE SAID THE AGREEMENT WAS SHELVED BECAUSE IT WASN'T REACHED THROUGH A COMPETITIVE BIDDING PROCESS THE DECISION WAS FIRST REPORTED IN HIGH PERFORMANCE COMPUTING AND COMMUNICATIONS WEEK A TRADE PUBLICATION SPECIFICALLY SOME OF THE COSTS ALLOCATED TO THE ENERGY DEPARTMENT WOULD HAVE INVOLVED OUTOFPOCKET EXPENDITURES IN LEASING MACHINES FROM THE COMPANY THE SPOKESMAN SAID IN A TYPICAL ARRANGEMENT TO TRANSFER DOE TECHNOLOGY TO THE PRIVATE SECTOR THE GOVERNMENT'S CONTRIBUTION ONLY INVOLVES THE ALLOCATION OF SCIENTISTS AND OTHER NONCASH EXPENDITURES STILL SCIENTISTS OF LOS ALAMOS NATIONAL LABORATORY ONE OF TWO DOE NUCLEAR WEAPONS LABS THAT WERE TO HAVE PARTICIPATED IN THE JOINT ARRANGEMENT EXPRESSED FRUSTRATION AT THE DECISION I'M VERY DISAPPOINTED SAID CHARLES SLOCOMB DEPUTY DIRECTOR OF THE LAB'S COMPUTING AND COMMUNICATIONS DIVISION I THINK NOT DOING THIS NOW WILL DELAY THIS PROCESS BY A COUPLE OF YEARS UNDER TERMS OF THE PROPOSED ARRANGEMENT CRAY RESEARCH WOULD HAVE PLACED MPP SYSTEMS THIS YEAR IN LOS ALAMOS AND LAWRENCE LIVERMORE NATIONAL LABORATORY AS WELL AS A LARGER SYSTEM AT ITS HEADQUARTERS IN EAGAN MINN COMPUTER EXPERTS FROM THE LABS WOULD THEN HAVE WORKED WITH CRAY RESEARCH TECHNICIANS AND WITH MORE THAN A DOZEN PRIVATE SECTOR USERS OF SUPERCOMPUTERS TO PERFECT APPLICATION SOFTWARE ABOUT 36 MILLION OF THE COSTS OF THE THREEYEAR ARRANGEMENT WOULD HAVE BEEN ALLOCATED TO THE LABS WHILE THE REST WOULD HAVE BEEN SPLIT AMONG CRAY RESEARCH AND THE PARTICIPATING PRIVATE COMPANIES THE LACK OF APPLICATION SOFTWARE HAS BEEN A PRINCIPAL REASON FOR THE SLOW ACCEPTANCE OF MPP SYSTEMS IN THE COMMERCIAL SECTOR MPP ADVOCATES SAY THE TECHNOLOGY WHICH SPREADS COMPUTATIONS AMONG HUNDREDS OR EVEN HUNDREDS OF THOUSANDS OF PROCESSORS WILL PROVIDE HUGE INCREASES IN SPEED FOR APPLICATIONS FROM SEISMIC SURVEYING TO WEATHER FORECASTING BUT THE COMPUTERS HAVE SO FAR PROVEN NOTORIOUSLY DIFFICULT TO PROGRAM ROBERT PALUCK CHAIRMAN OF CONVEX COMPUTER CORP RICHARDSON TEXAS SAID THE ORIGINAL ARRANGEMENT WITH CRAY RESEARCH PUT OTHERS LIKE HIM AT A TREMENDOUS COMPETITIVE DISADVANTAGE IN DEVELOPING AND MARKETING THEIR OWN MPP SYSTEMS EVERYBODY OTHER THAN CRAY WAS INCENSED ABOUT THIS THING HE SAID ADDING THAT HE HOPES THE LABS WILL SET UP TEST BEDS TO TRY OUT A VARIETY OF COMPETING MPP SYSTEMS TO SEE WHICH WORKS BEST WITH SPECIFIC APPLICATIONS 9303190110 930319 LETTERS TO THE EDITOR WE'RE NOT GANGING UP ON OUR PORTFOLIO FIRMS REFERENCES IN YOUR FEB 9 ARTICLE NEW YORK'S PENSION FUND TARGETS A&P DISTORTS OUR STATE PENSION FUND'S NEW CORPORATE PERFORMANCE ANALYSIS SYSTEM THE STORY'S REFERENCE TO A PROXY CONTEST IS LIKE OTHER UNFORTUNATE REFERENCES SUCH AS ORGANIZE A PROXY CONTEST TARGETED AND PRESSURE TACTICS THIS IS NOT A PROXY CONTEST IN ANY SENSE OF THE WORD IN FACT THE PROCESS SEEKS TO AVOID THE COMBATIVE GANGING UP ON THOSE CORPORATIONS THAT HAPPEN TO BE IN THE NEWS WE DO APPRECIATE YOUR REPORTING THOUGH THAT THE PROCESS IS A RIGOROUS AND SYSTEMATIC MEASUREMENT EVERY CALENDAR QUARTER OF THE PERFORMANCE OF ALL STANDARD & POOR'S 500 COMPANIES IN OUR PORTFOLIO IT ALLOWS US TO TAKE ACTIONS VOTE AGAINST INCUMBENT BOARD MEMBERS AND ASK OTHERS TO DO SO TO ENCOURAGE CHRONIC UNDERPERFORMERS TO IMPROVE THEIR PERFORMANCE AND INCREASE THEIR STOCK VALUE THIS PROCESS FULFILLS MY FIDUCIARY RESPONSIBILITIES TO THE FUND'S BENEFICIARIES 9303190109 930319 CHARTER ONE SEES HIGHER 1STPERIOD PROFIT IN OPERATIONS BY RALPH E WINTER SPECIAL TO THE WALL STREET JOURNAL CLEVELAND CHARTER ONE FINANCIAL INC WILL SHOW A SIZABLE INCREASE IN FIRSTQUARTER EARNINGS FROM OPERATIONS IN SPITE OF EXPENSES RELATED TO A MAJOR ACQUISITION CHARLES JOHN KOCH PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THE OUTLOOK FOR THE REST OF THE YEAR ALSO IS BRIGHT AS THE THRIFT HOLDING COMPANY BENEFITS FROM ACQUISITIONS OF THE PAST TWO YEARS HE SAID CHARTER ONE'S ASSETS EXCEED 5 BILLION ALMOST ALL IN NORTHERN OHIO UP 65 SINCE THE END OF 1990 ANALYST ESTIMATES FOR FIRSTQUARTER EARNINGS FROM OPERATIONS IN THE RANGE OF 82 CENTS TO 85 CENTS A SHARE APPEAR TO BE IN THE BALLPARK MR KOCH SAID THAT WOULD BE AN ABOUT 20 INCREASE FROM THE 69 CENTS A SHARE CHARTER ONE EARNED A YEAR EARLIER CURRENTQUARTER ESTIMATES INCLUDE 14 CENTS A SHARE OF COSTS RELATED TO THE JAN 21 PURCHASE OF WOMEN'S FEDERAL SAVINGS BANK OF CLEVELAND HE SAID GAINS ON SALE OF SECURITIES WILL PARTLY OFFSET THE ACQUISITION COSTS HE ADDED BUT THE CURRENTQUARTER ESTIMATES EXCLUDE AN EXPECTED GAIN OF ABOUT 7 MILLION OR 45 CENTS A SHARE FROM A CHANGE IN ACCOUNTING FOR DEFERRED INCOME TAXES UNDER FASB RULE 109 HE SAID MR KOCH SAID ANALYST ESTIMATES FOR 1993 EXCLUDING THE FASB 109 GAIN RANGE FROM ABOUT 350 TO 4 A SHARE I GET A LITTLE UNCOMFORTABLE AT THE TOP END OF THAT RANGE HE SAID AND THE LOWEST ESTIMATES PROBABLY ARE TOO CONSERVATIVE A LOT CAN HAPPEN BETWEEN NOW AND YEAR END HE SAID BUT ESTIMATES SLIGHTLY ABOVE THE MIDDLE OF THE ANALYST RANGE WOULD APPEAR TO BE REASONABLE BASED ON CURRENT CONDITIONS THE SPREAD BETWEEN YIELD ON LOANS AND OTHER ASSETS AND THE COST OF FUNDS HASN'T DETERIORATED FROM THE HIGH LEVELS OF LATE LAST YEAR MR KOCH SAID BUT IT MAY HAVE STOPPED IMPROVING CHARTER ONE'S INTEREST RATE SPREAD WIDENED TO 346 IN THE 1992 FOURTH QUARTER WHICH EXCEEDED THE 315 SPREAD FOR THE WHOLE YEAR MR KOCH SAID HE DOESN'T EXPECT MAJOR CHANGE IN MORTAGE LOAN RATES IN THE NEARTERM BUT THAT A SLIGHT FURTHER DECLINE IS MORE LIKELY THAN AN INCREASE DIRECTORS PROBABLY WILL INCREASE THE DIVIDEND NEXT MONTH MR KOCH SAID HOWEVER PAYOUT WILL REMAIN CONSERVATIVE AS LONG AS THERE IS AN OPPORTUNITY TO PURCHASE TROUBLED THRIFTS OR THRIFT ASSETS FROM THE RESOLUTION TRUST CORP HE SAID ONCE THAT OPPORTUNITY TO EMPLOY CAPITAL DRIES UP MR KOCH SAID THE BOARD PLANS TO MOVE TOWARD A POLICY OF PAYING OUT 30 TO 33 OF THE PREVIOUS YEAR'S CORE EARNINGS WHICH EXCLUDE GAINS ON SALE OF SECURITIES THAT FORMULA WOULD INDICATE A DIVIDEND DOUBLE THE CURRENT 12 CENTS QUARTERLY OR 48 CENTS ANNUALLY 9303190106 930319 LETTERS TO THE EDITOR PROTECT OUR COASTS AGAINST OIL TANKERS YOUR FEB 12 PAGEONE ARTICLE CRAFT WARNING UNSAFE OIL TANKERS AND ILLTRAINED CREWS THREATEN FURTHER SPILLS GAVE AN EXCELLENT SUMMARY OF THE RISKS MANY TANKER COMPANIES ARE TAKING RISKS SHARED BY THE COUNTRIES IN WHOSE WATERS THE TANKERS OPERATE HOWEVER YOU LEFT TOO ROSY AN IMPRESSION OF THE ADVANCES IN TANKER SAFETY IN THE US MANY AGING UNSAFE TANKERS REGISTERED IN FLAGOFCONVENIENCE STATES WITH TERRIBLE SAFETY RECORDS AND MANNED BY POORLY TRAINED CREW MEMBERS WHO DO NOT SHARE A COMMON LANGUAGE STILL CALL AT US PORTS MOREOVER THE US TANKER FLEET IS HIGH RISK DESPITE THE PRESENCE OF SOME OF THE INDUSTRY'S MORE RESPONSIBLE OPERATORS THOSE WHO POINT TO THE EXCELLENT SAFETY RECORD FOR THE PAST TWO YEARS ARE WHISTLING PAST THE GRAVEYARD TWO YEARS IS NOT A MEANINGFUL TREND IN TANKER SAFETY WHILE TANKERS OLDER THAN 15 YEARS ARE INVOLVED IN A DISPROPORTIONATE SHARE OF MAJOR ACCIDENTS A DISTURBING NUMBER OF US TANKERS ARE MORE THAN 30 YEARS OLD IN PRINCE WILLIAM SOUND THERE HAVE BEEN AT LEAST SEVEN INCIDENTS OF LADEN TANKERS SUFFERING POWER STEERING OR NAVIGATIONAL FAILURES SINCE THE EXXON VALDEZ SPILL THE US HAS BEEN FIXATED ON OIL SPILL RESPONSE NEGLECTING CRUCIAL IMPROVEMENTS IN SPILL PREVENTION FOLLOWING THE RECENT CLUSTER OF MEGASPILLS THE US IS IN DANGER OF FALLING BEHIND EUROPEAN COMMUNITY COUNTRIES IN CREATING TANKERFREE ZONES AND REQUIRING TUG ESCORTS THE COAST GUARD IS FAR BEHIND THE SCHEDULE PROVIDED IN THE OIL POLLUTION ACT OF 1990 IT HAS YET TO MAKE ANY TANKERFREE ZONE RECOMMENDATIONS LAST FALL THE COAST GUARD FINALLY PROPOSED MEANINGLESS TUG ESCORT REGULATIONS FOR PRINCE WILLIAM AND PUGET SOUNDS WITH A PROMISE TO CONSIDER OTHER PORTS LATER THE COAST GUARD IS NOT EVEN CONSIDERING STANDBY SALVAGE TUGS FOR COASTAL PROTECTION OUTSIDE OF PORTS THE KIND OF TUG THAT MIGHT HAVE KEPT THE BRAER OFF THE ROCKS IN THE SHETLAND ISLANDS THE US MUST JOIN WITH OTHER RESPONSIBLE MARITIME NATIONS IN TRYING TO OVERHAUL THE INTERNATIONAL MARITIME ORGANIZATION SYSTEM THAT WILL TAKE YEARS IF IT IS POSSIBLE AT ALL IN THE MEANTIME THE US SHOULD OVERRIDE INDUSTRY AND INTERNATIONAL RESISTANCE TO TAKE ACTION UNILATERALLY TO PROTECT OUR COASTS AS WE FINALLY DID IN IMPOSING NEW LIABILITY STANDARDS AND PHASING IN DOUBLEHULL TANKERS IN RAISING THE ISSUE OF SUBSTANDARD FLAGS YOU MAKE AN UNQUALIFIED REFERENCE TO THE 1992 ANNUAL REPORT OF THE INSTITUTE OF LONDON UNDERWRITERS ILU IT IS INSULTING TO EQUATE CYPRUS'S RECORD WITH THAT OF PANAMA SOUTH KOREA HONDURAS MALTA AND TURKEY IF YOU HAD READ ILU'S REPORT YOU WOULD HAVE DISCOVERED THAT THERE WAS A DRAMATIC DROP IN THE CYPRIOT FLEET CASUALTY RECORD IN 1992 IN PARTICULAR CONSTRUCTIVE TOTAL LOSSES OF CYPRIOT SHIPS ACCOUNT FOR ONLY THREE SHIPS OF AGGREGATE CAPACITY OF 30687 TONS WHICH IS WELL BELOW THE WORLD AVERAGE AS MORE THAN 1600 OCEANGOING VESSELS WITH AGGREGATE CAPACITY IN EXCESS OF 22 MILLION TONS ARE REGISTERED IN CYPRUS THE INTERNATIONAL MARITIME PRESS CONCLUDED THAT THE CYPRUS FLAG PERFORMANCE IN 1992 WAS INDEED VERY GOOD THE CYPRUS FLAG IS BY NO MEANS A FLAG OF CONVENIENCE ANYMORE IN FACT IT IS A SOVEREIGN FLAG WITH A VERY SOUND MARITIME INFRASTRUCTURE SUBSTANTIAL CHANGES IN THE AVAILABILITY AND UPGRADING PROCESSES OF THE NECESSARY CONTROL MECHANISMS HAVE PROVIDED ADEQUATE AND COMPETENT MANPOWER TO EXERCISE CONTROL EFFECTIVELY OVER THE FLEET 9303190105 930319 LETTERS TO THE EDITOR SEARLE AGAINST USE OF ITS DRUG IN ABORTION YOUR FEB 22 PAGEONE ARTICLE DRUG DILEMMA AMONG THOSE WARY OF ABORTION PILL IS MAKER'S PARENT FIRM CONTAINS AN INACCURACY REGARDING SEARLE'S ULCERPREVENTIVE MEDICATION CYTOTEC MISOPROSTOL THE ARTICLE STATES ONLY AFTER THE FACT DID IT SEARLE AGREE TO THE DRUG'S BRITISH AND FRENCH USE IN ABORTIONS SEARLE HAS NEVER WILLINGLY AGREED TO MAKE MISOPROSTOL AVAILABLE FOR USE IN ABORTION NOR IS IT THE COMPANY'S INTENTION TO DO SO MISOPROSTOL IS NOT APPROVED IN BRITAIN FOR USE IN ABORTION WITH OR WITHOUT RU486 IN FRANCE SEARLE HAS COMPLIED WITH A DIRECTIVE BY THE MINISTRY OF HEALTH TO REVISE THE LABELING FOR MISOPROSTOL THE LABEL RETAINS A CONTRAINDICATION AGAINST USE BY WOMEN OF CHILDBEARING POTENTIAL BUT INCLUDES AN EXCEPTION PERMITTING USE FOR ABORTION IN SPECIALIZED HOSPITALS CYTOTEC WAS DISCOVERED AND DEVELOPED BY SEARLE FOR THE PREVENTION OF ULCERS IN PEOPLE TAKING CERTAIN ARTHRITIS MEDICATIONS SEARLE STRONGLY OPPOSES ANY EFFORTS TO APPROVE ITS USE WITH RU486 IN ABORTION EITHER IN THE US OR ELSEWHERE ANY OTHER USE OF THIS PRODUCT IS OUTSIDE ITS PURPOSE IT IS NOT SEARLE'S INTENTION OR DESIRE TO BECOME EMBROILED IN THE ABORTION ISSUE OUR ONLY HOPE IS TO CONTINUE TO MAKE CYTOTEC AVAILABLE TO THOSE WHO RELY ON OUR POTENTIALLY LIFESAVING MEDICATION 9303190104 930319 LEISURE & ARTS ON SPORTS BASEBALL'S MR K BY FREDERICK C KLEIN THOSE WERE THE KEY 1991 BATTING FIGURES OF ROB DEER AN OUTFIELDER FOR THE DETROIT TIGERS HIS BATTING AVERAGE FOR THE SEASON WAS 179 A 20THCENTURY RECORD LOW FOR A PLAYER WITH 400 OR MORE TIMES AT BAT HE HAD 448 AND ON 175 OF THOSE TRIPS AN AMERICAN LEAGUELEADING TOTAL HE STRUCK OUT ALMOST ALWAYS SWINGING BUT HE STILL MANAGED TO HIT 25 HOME RUNS AND BAT IN 64 RUNS TOTALS THAT MOST MAJOR LEAGUERS WOULD HAVE BEEN DELIGHTED TO DUPLICATE IT HAS EVER BEEN THUS FOR BASEBALL'S POWER HITTERS EVEN THE GREAT BABE FANNED A LOT AND REGGIE JACKSON THIS YEAR'S HALL OF FAME INDUCTEE HOLDS THE GAME'S CAREER RECORD BUT THE MUSCULAR DEER IS DISTINGUISHED EVEN IN THAT COMPANY HE HAS FOR FURTHER INSTANCE HIT 20 OR MORE HOME RUNS IN SEVEN CONSECUTIVE SEASONS A CURRENT STREAK TOPPED ONLY BY ANDRE DAWSON'S EIGHTYEAR RUN AND HIS 32 HOME RUNS LAST YEAR IN 393 TRIPS TO THE PLATE MADE HIM ONE OF JUST FIVE PLAYERS EVER TO HAVE TOPPED THE 30HOMER MARK FOR A SEASON IN LESS THAN 400 OFFICIAL AT BATS BUT YES HE MAINTAINED HIS CAREERLONG REIGN AS BASEBALL'S MR AS OPPOSED TO DR K WITH 131 STRIKEOUTS OR ONE EVERY THREE TIMES UP FOR YOU NONFANS K IS THE SCORECARD TERM FOR A WHIFF A FAN A STRIKEOUT A GRABSOMEBENCH THE GENERATOR OF THAT SURPRISING STUFF IS SURPRISINGLY NO HAPPYGOLUCKY TYPE CONTENT TO FLAIL HEEDLESSLY IN THE HOPE OF OCCASIONALLY CONNECTING BUT A STUDENT OF THE GAME IN THE BACKYARD OF HIS HOME IN SCOTTSDALE ARIZ IS A PITCHING MACHINE AND BATTING CAGE THAT HE TRIES TO USE TO GOOD EFFECT DURING THE OFFSEASON HE IS A TAKER OF LESSONS A WATCHER OF BATSMEN OF NOTE THE GUYS I WATCH CLOSEST ARE POWER HITTERS LIKE JOSE CANSECO MARK MCGWIRE AND TEAMMATE CECIL FIELDER DEER SAYS THERE'S NOT MUCH POINT IN ME STUDYING THE 330 HITTERS BECAUSE I'M NEVER GOING TO BE ONE AND THAT TO A POINT IS OK WITH HIS TEAM WHICH BOASTS OTHER BIGSWISH TYPES INCLUDING FIELDER MICKEY TETTLETON TRAVIS FRYMAN AND KIRK GIBSON AND WHICH IN RECENT CAMPAIGNS HAS DEDICATED ITSELF TO OUTBASHING ITS OPPONENTS THE 1992 TIGERS LED THEIR LEAGUE IN RUNS HOME RUNS AND STRIKEOUTS THEY ALSO WERE THE SECONDMOST SCOREDUPON CLUB AND THEIR 7587 WONLOST RECORD WAS GOOD ONLY FOR SIXTH PLACE IN THE AL EAST THEIR GRAPEFRUIT LEAGUE RECORD THROUGH WEDNESDAY ABOUT FIVE RUNS A GAME SCORED ABOUT EIGHT PER ALLOWED INDICATES A SIMILAR 1993 PATTERN AN OUT IS AN OUT DECLARES LARRY HERNDON THE TIGERS' BATTING COACH WE'D LIKE TO SEE ROB USE THE FIELD BETTER BUT HE WOULDN'T PUT FEAR IN THE HEARTS OF OPPOSING PITCHERS IF HE STRUCK OUT LESS AND GROUNDED OUT TO THE SHORTSTOP MORE DEER AGREES WITH THAT ASSESSMENT UP TO A POINT THE STRIKEOUTS BOTHER ME IN CERTAIN SITUATIONS LIKE WHEN THERE'S A RUNNER ON THIRD BASE WITH LESS THAN TWO OUTS BUT OTHERWISE I THINK I HELP MY TEAM MOST BY SWINGING HARD SAYS THE BLONDMUSTACHED 32YEAROLD CALIFORNIA NATIVE THAT HE ADDS IS WHY I'M HERE INDEED THE TIGERS LIKE THE SAN FRANCISCO GIANTS AND MILWAUKEE BREWERS DEER'S PREVIOUS BIGLEAGUE EMPLOYERS CAN HARDLY CLAIM TO BE CAUGHT UNAWARES BY HIS PROCLIVITIES SINCE SIGNING WITH THE GIANTS AS A TEENAGER HE HAS ALTERNATELY RENT THE AIR AND THE FENCES WITH HIS MIGHTY SWINGS ON HIS WAY UP HE LED THE CALIFORNIA TEXAS AND PACIFIC COAST LEAGUES IN HOME RUNS HE ALSO LED THEM IN STRIKEOUTS HE'S LED THE AMERICAN LEAGUE THREE TIMES IN THE LATTER CATEGORY IN 1987 1988 AND 1991 IF HE DIDN'T MISS SEVEN WEEKS WITH INJURIES A BROKEN HAND AND BADLY SPRAINED ANKLE HE MIGHT HAVE DONE THE SAME LAST YEAR THE 1992 CAMPAIGN THOUGH WAS A TURNAROUND ONE FOR DEER EMBARRASSED BY HIS 179 BATTING AVERAGE THE YEAR BEFORE HIS FIRST SEASON IN DETROIT AND WEARY OF UNSOLICITED ADVICE WAITRESSES AND PARKINGLOT ATTENDANTS WERE GIVING ME TIPS HE SAYS HE SOUGHT OUT WALT HRINIAK THE CELEBRATED BATTING COACH OF THE CHICAGO WHITE SOX FOR INDIVIDUAL TUTORAGE HRINIAK GRANTED HIM OFFSEASON TIME BEFORE LAST SEASON AND THIS ONE HRINIAK IS THE AUTHOR OF A COMPLETE HITTING SYSTEM THAT COVERS EVERYTHING FROM STANCE DEEP IN THE BATTER'S BOX TO FOLLOWTHROUGH THE LEAD HAND ONLY CLINGS TO THE BAT BUT DEER SAYS THAT WITH HIM THE GURU AIMED TO INSTRUCT RATHER THAN INDOCTRINATE HE ENCOURAGED ME TO USE THE THINGS THAT PERTAINED TO ME AND FORGET THE ONES THAT DIDN'T DEER AVERS THE THINGS HE WOUND UP ADOPTING WERE THE ONEHANDED FOLLOWTHROUGH AND A COMMITMENT TO KEEPING HIS HEAD DOWN DURING HIS RIGHTHANDED STROKE ANY GOLFER KNOWS THE LATTER HABIT IS EASIER SAID THAN DEVELOPED AND NOW DEER DOES TOO IT THE HEADDOWN PART AFFECTED MY SWING IN WAYS I NEVER SUSPECTED IT ALL TOOK SOME GETTING USED TO HE TESTIFIES BUT DEER SAYS HE GOT THE HANG OF IT IN LAST SEASON'S SECOND HALF AND HIS 302 AVERAGE IN THAT SPAN BETWEEN INJURIES BOOSTED HIS SEASON TOTAL TO 247 A REMARKABLE 68POINT IMPROVEMENT OVER THE YEAR BEFORE AND 22 POINTS ABOVE HIS CAREER MARK HIS AIM THIS YEAR IS TO DO MORE OF THE SAME AND TO THAT END HE PUMPED ENOUGH IRON IN THE OFFSEASON TO ADD 15 POUNDS TO A 6FOOT3 FRAME THAT LAST YEAR PACKED 225 OF THEM STRENGTH IS NOT THE WEAKNESS OF A MAN WHO HIT THE BALL OUT OF OLD COMISKEY PARK IN CHICAGO A FEW YEARS AGO AND HIT THE LEFTFIELD ROOF IN TIGER STADIUM LAST SEASON WITH A HOME RUN ONE OBSERVER CALLED A HUMONGOUS POP UP BUT HE HOPES THE WEIGHT GAIN WILL IMPROVE HIS STAMINA AND WHILE HE SAYS HE'S NOT USUALLY A SETTER OF GOALS HE HAS A FEW FOR THE CAMPAIGN AHEAD I'D LIKE TO HIT 40 HOME RUNS WHICH I'VE NEVER DONE HIS HIGH WAS 33 AS AN '86 BREWER AND GET MY AVERAGE ABOVE 250 WHICH HE DID ONCE IN 1988 HE SAYS AND THE K'S OH MAYBE 150 HE ALLOWS WITH A SMILE I DON'T EXPECT TO CHANGE THAT MUCH 9303190103 930319 WHO'S NEWS TRANSCANADA PIPELINES LTD TRANSCANADA PIPELINES LTD CALGARY ALBERTA THIS GAS PIPELINE AND GAS MARKETING CONCERNED NAMED GEORGE W WATSON AS PRESIDENT MR WATSON 45 YEARS OLD WILL SUCCEED GERALD MAIER 64 EFFECTIVE APRIL 23 MR MAIER WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY SAID BUT HE INTENDS TO STEP DOWN AS CHIEF EXECUTIVE WITHIN A YEAR MR WATSON CURRENTLY IS CHIEF FINANCIAL OFFICER OF TRANSCANADA PIPELINES THE COMPANY SAID IT INTENDS TO MAKE THE CHAIRMAN'S POST A NONEXECUTIVE ONE AND TO KEEP IT SEPARATE FROM THE CHIEF EXECUTIVE POST 9303190102 930319 WHO'S NEWS TWO EXECUTIVES APPEAR TO BE LOSERS IN SHEARSON MERGER BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE MUSIC HAS STOPPED IN THE SMITH BARNEYSHEARSON MERGER AND TWO SENIOR BROKERAGE EXECUTIVES ARE LEFT WITH NO CHAIRS JOHN LAIRD CHIEF OF SHEARSON LEHMAN BROTHERS INC'S HUGE ASSETMANAGEMENT GROUP AND MICHAEL PANITCH HEAD OF RETAIL OPERATIONS AND A VICE CHAIRMAN AT SMITH BARNEY HARRIS UPHAM & CO WERE EFFECTIVELY FORCED FROM THEIR POSTS BECAUSE OF LAST WEEK'S MERGER THAT WILL CREATE SMITH BARNEY SHEARSON INC SMITH BARNEY IS A SUBSIDIARY OF PRIMERICA CORP WHILE SHEARSON IS A UNIT OF AMERICAN EXPRESS CO IT IS UNLIKELY THAT MR LAIRD AND MR PANITCH WILL BE GIVEN OTHER SENIOR POSTS AT THE NEW FIRM THUS THE TWO EXECUTIVES HAVE BECOME THE FIRST HIGHLEVEL LOSERS IN WHAT ANALYSTS HAVE BILLED A WINWIN UNION FOR BOTH FIRMS ABOUT 1000 EMPLOYEES OF THE COMBINED FIRMS ARE LIKELY TO BE DISMISSED AFTER THE MERGER IS COMPLETED IN JULY PEOPLE FAMILIAR WITH THE MATTER SAY THOSE WITH THE LEAST RISK OF LOSING THEIR JOBS ANALYSTS SAY ARE STOCKBROKERS THE FURTHER ANY PERSON IS REMOVED FROM BEING A BROKER THE MORE THEY ARE AT RISK OF BEING AXED SAYS JOHN KEEFE OF KEEFE WORLDWIDE INFORMATION SERVICES INC A NEW YORK CONSULTING FIRM THE NEW BROKERAGE FIRM WILL BE RUN BY FRANK ZARB SMITH BARNEY'S CHAIRMAN AND CHIEF EXECUTIVE JOSEPH PLUMERI SHEARSON'S HEAD OF BROKERAGE OPERATIONS WILL BE PRESIDENT HE WILL RUN SMITH BARNEY SHEARSON'S RETAIL SALES AND MARKETING THAT LEAVES OUT MR PANITCH WHO RAN SMITH BARNEY'S RETAIL BRANCH SYSTEM BEFORE THE MERGER MR PANITCH 56 YEARS OLD DECLINED TO COMMENT AS DID A SMITH BARNEY SPOKESMAN MR PANITCH RAN THE DOMESTIC BRANCH SYSTEM FOR SIX YEARS AT SHEARSON WHERE HE WAS A DIRECTOR AND VICE CHAIRMAN HE JOINED SMITH BARNEY IN 1989 AND BECAME A VICE CHAIRMAN IN 1990 MEANWHILE JEFFREY LANE CURRENTLY A SMITH BARNEY VICE CHAIRMAN WILL HEAD UP SMITH BARNEY SHEARSON'S ASSETMANAGEMENT GROUP THAT CUTS OUT MR LAIRD WHO RAN SHEARSON'S 52 BILLION ASSETMANAGEMENT DIVISION MR LAIRD DECLINED TO COMMENT AS DID SHEARSON MR LAIRD 50 IS LIKELY TO REJOIN AMERICAN EXPRESS ACCORDING TO EXECUTIVES AT AMERICAN EXPRESS BEFORE HIS SHEARSON POST MR LAIRD HAD BEEN AMERICAN EXPRESS'S TREASURER AMONG OTHER THINGS SEPARATELY HOWARD L CLARK JR FORMER CHAIRMAN AND CHIEF EXECUTIVE OF SHEARSON LEHMAN BROTHERS HOLDINGS IS EXPECTED TO ANNOUNCE HIS RESIGNATION TODAY PEOPLE CLOSE TO THE SITUATION SAID 9303190101 930319 SEARS'S ALLSTATE UNIT EXPECTS TO RAISE MORE THAN 2 BILLION IN INITIAL OFFERING BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL ALLSTATE CORP PLANS TO RAISE ABOUT 2 BILLION IN ITS INITIAL PUBLIC OFFERING MAKING IT THE LARGEST SUCH OFFERING EVER BY A US COMPANY ALLSTATE A UNIT OF SEARS ROEBUCK & CO FILED A REGISTRATION STATEMENT LATE WEDNESDAY WITH THE SECURITIES & EXCHANGE COMMISSION BUT DETAILS OF THE OFFERING DIDN'T EMERGE UNTIL YESTERDAY THE OFFERING LED BY GOLDMAN SACHS & CO COULD CREATE THE SECONDLARGEST INVESTOROWNED INSURANCE COMPANY IN THE COUNTRY BEHIND AMERICAN INTERNATIONAL GROUP INC BASED ON MARKET CAPITALIZATION SEARS BASED IN CHICAGO WILL RETAIN ABOUT 80 OF ALLSTATE FOLLOWING THE OFFERING SEARS ANNOUNCED LAST YEAR PLANS TO TAKE 20 OF ALLSTATE PUBLIC AS PART OF ITS PLAN TO STREAMLINE OPERATIONS AND CONCENTRATE ON RETAILING ACCORDING TO ITS REGISTRATION STATEMENT ALLSTATE EXPECTS TO SELL 785 MILLION SHARES FOR AS MUCH AS 26 A SHARE OR 204 BILLION ANALYSTS SAID THE STOCK COULD SELL FOR MORE OR LESS THAN 26 A SHARE DEPENDING ON MARKET CONDITIONS AT THE TIME OF THE SALE ALLSTATE ALSO HOPES TO SELL AN ADDITIONAL 11 MILLION SHARES THROUGH AN OVERALLOTMENT OPTION IF THE OFFERING IS SUCCESSFUL ALLSTATE BASED IN NORTHBROOK ILL IS THE SECONDLARGEST CAR AND HOMEOWNER INSURANCE COMPANY IN THE US BEHIND STATE FARM MUTUAL AUTOMOBILE INSURANCE CO WHICH IS OWNED BY POLICYHOLDERS ACCORDING TO THE REGISTRATION STATEMENT ALLSTATE LOST 8252 MILLION LAST YEAR BECAUSE OF ITS HUGE 165 BILLION LOSS ON HURRICANE ANDREW EXCLUDING ANDREW ALLSTATE'S PROPERTY AND CASUALTY OPERATIONS EARNED 8946 MILLION FOR 1991 ALLSTATE HAD A PROFIT OF 7225 MILLION THE OFFERING COMES AT A GOOD TIME GIVEN THE SOARING VALUES OF PROPERTY AND CASUALTY STOCKS SINCE THE HURRICANE INVESTORS BELIEVE INSURANCE COMPANIES WILL HAVE TO RAISE PRICES TO MAKE UP FOR THEIR LOSSES THUS ENDING THE HEATED PRICE WAR THAT HAS BEEN ERODING THEIR PROFITS FOR THE PAST SIX YEARS A NUMBER OF INSURANCE COMPANIES NOTABLY AMERICAN REINSURANCE CORP A MAJOR PROPERTY AND CASUALTY REINSURER HAVE GONE PUBLIC RECENTLY TAKING ADVANTAGE OF THE FAVORABLE MARKET CONDITIONS THE BIGGEST INITIAL PUBLIC OFFERING IN THE US WAS THE 28 BILLION BRITISH PETROLEUM CO OFFERING IN 1987 ACCORDING TO SECURITIES DATA CORP THE BIGGEST OFFERING FOR A US ISSUER WAS THE 1987 OFFER FOR CONSOLIDATED RAIL CORP WHICH RAISED 145 BILLION ALLSTATE WOULD USE 350 MILLION OF THE OFFERING TO INFUSE CAPITAL INTO ITS INSURANCE UNIT AND HELP MAKE UP FOR THE HURRICANE ANDREW LOSS IMMEDIATELY FOLLOWING THE OFFERING ALLSTATE PLANS TO SELL 600 MILLION IN DEBT WHICH WOULD ALSO BE INFUSED INTO THE INSURANCE UNIT 9303190100 930319 LEISURE & ARTS BOOKSHELF THE AUTHOR AND THE IMPOSTER BY LEE LESCAZE PHILIP ROTH'S OPERATION SHYLOCK 398 PAGES 23 IS SUBTITLED A CONFESSION SIMON & SCHUSTER'S PUBLICITY MATERIAL LABELS THE BOOK FICTION MR ROTH HAS BEEN AMUSING HIMSELF AND BEFUDDLING INTERVIEWERS BY INSISTING THAT IT IS FACT THE SAME DELIBERATE CONFUSION CONTINUES BETWEEN OPERATION SHYLOCK'S COVERS IN THE EPILOGUE THE BOOK'S MAIN CHARACTER A NOVELIST NAMED PHILIP ROTH AGONIZES OVER WHETHER TO PRESENT HIS WORK AS FACT OR TO YIELD TO THE ARGUMENTS OF AN ISRAELI SPYHANDLER AND CALL IT A NOVEL MR ROTH OF COURSE HAS BEEN ARGUING WITH HIMSELF INTERVIEWERS AND VARIOUS DOUBLES OVER THE NATURE OF REALITY FOR YEARS EVER SINCE IN HIS PHRASE HE ATE OF THE FRUIT OF THE TREE OF FICTION FICTION BROUGHT MR ROTH INTO A WORLD OF IMPERSONATION IMITATION AND TWOFOLDEDNESS IN WHICH THE BLURRING OF SUCH DISTINCTIONS HAS BECOME AN INCREASINGLY DOMINANT PREOCCUPATION WHILE SIMULTANEOUSLY THE ACT OF WRITING MR ROTH'S FICTIONS HAS BECOME A PRINCIPAL SUBJECT OF THOSE WORKS IN OPERATION SHYLOCK SINCE IT CONTAINS NOT ONE BUT TWO CHARACTERS NAMED PHILIP ROTH THE NOVELIST GETS TO PRACTICE A LITTLE TWOFOLDEDNESS BY TRANSCONTINENTAL TELEPHONE THE REPLY IS YES YES WHO IS THIS PLEASE SO THE WRITERCHARACTER PHILIP ROTH GIVES A FALSE NAME IN EFFECT DENYING HIS IDENTITY DURING A CONVERSATION WITH ANOTHER MAN WHO IS ATTEMPTING TO USURP THAT IDENTITY THE IMPOSTOR ROTH IS IN ISRAEL MAKING HEADLINES BY PREACHING THAT JEWS SHOULD RETURN TO THE EUROPEAN DIASPORA BEFORE AN ARAB ONSLAUGHT CREATES A SECOND HOLOCAUST THIS TIME IN ISRAEL THE BELEAGUERED AUTHOR RECOVERING FROM A BREAKDOWN CAUSED BY THE SLEEPING MEDICATION HALCION FLIES TO ISRAEL TO UNMASK HIS DOUBLE THE CHALLENGE STIMULATES HIM HE THE IMPOSTOR WAS JUST WHAT THE PSYCHOPHARMACOLOGIST ORDERED WHAT AUTHOR ROTH FINDS IS A LOOKALIKE DOWN TO THE MISSING MIDDLE BUTTON ON THE IDENTICAL SPORTS JACKET IT IS A PROMISING BEGINNING SINCE THE PUBLICATION OF HIS FIRST BOOK GOODBYE COLUMBUS IN 1959 MR ROTH HAS OUTRAGED SOME JEWS WHO RESENTED HIS PORTRAITS OF JEWISH LIFE AND THE WIT WITH WHICH HE COULD ASK WHY GOD COULD CREATE THE WORLD IN SEVEN DAYS BUT COULDN'T IMPREGNATE A VIRGIN OPERATION SHYLOCK SEEMS TO PROMISE MORE OF MR ROTH'S SUBTLE VARIATIONS ON TWO OF HIS FAVORITE TOPICS THE JEWS AND HIMSELF INDEED IN ONE OF THE BOOK'S FUNNIEST PASSAGES AUTHOR ROTH PRETENDS TO SHARE THE DIASPORIST VIEWS OF THE IMPOSTOR AND LECTURES A PALESTINIAN FRIEND ON THE GENIUS OF IRVING BERLIN EASTER PARADE AND WHITE CHRISTMAS ARE WORKS OF JEWISH GENIUS EQUAL TO THE TEN COMMANDMENTS HE SAYS WHAT HAS IRVING BERLIN DONE HE HAS TAKEN THE TWO HOLIDAYS AT THE HEART OF JEWISH REJECTION OF CHRISTIANITY AND STRIPPED THEM OF CHRIST HE TURNS THEIR RELIGION INTO SCHLOCK BUT NICELY NICELY SO NICELY THE GOYIM DON'T EVEN KNOW WHAT HIT 'EM THROUGHOUT HIS DISTINGUISHED CAREER THIS IS HIS 20TH BOOK MR ROTH HAS UNLEASHED HIS SHARP WIT AT UNLIKELY MOMENTS EVEN IN HIS MOVING MEMOIR OF HIS FATHER'S LAST YEARS PATRIMONY MR ROTH HIGHLIGHTED THE POWER OF HIS STORY WITH SHAFTS OF WIT LIFE IS TOO CONFUSING AND TOO GRIM TO BE CONTINUALLY TAKEN SERIOUSLY HE SEEMS TO SAY LAUGHTER SOMETIMES IS THE ONLY WAY OUT HOWEVER AFTER ITS INTERESTING START OPERATION SHYLOCK RUNS OUT OF LAUGHTER AND MOMENTUM MR ROTH HAS NEVER NEEDED MUCH OF A PLOT TO HANG HIS PAGES ON BUT THE SECOND HALF OF THIS BOOK BECOMES AS STATIC AS A LECTURE HIS INVENTIVENESS FLAGS IMPOSTOR ROTH REVEALS HIMSELF TO BE THE POSSESSOR OF A SEXUALLY EXCITING NONJEWISH MISTRESS AND A SURGICAL IMPLANTENHANCED PENIS YET BY THEN THE NOVEL HAS BECOME SO FLACCID THAT EVEN THE INTRODUCTION OF SOME SEXUAL ACTIVITY ISN'T INVIGORATING READERS ARE BECALMED IN DOLDRUMS OF ARGUMENTATION IN KEEPING WITH THIS SAD STATE OF AFFAIRS IT IS FITTING THAT THE MOST INTERESTING SEX IS DEAD SEX THE MISTRESS REPORTS BY MAIL TO AUTHOR ROTH THAT HER LOVER HAS DIED AND THAT FOLLOWING HIS DEATH SHE AND HIS IMPLANT SPENT TWO DAYS OF FREQUENT SEXUAL CONGRESS BEFORE SHE TURNED THE BODY OVER TO UNDERTAKERS THE MR ROTH OF PORTNOY'S COMPLAINT WOULD HAVE HAD READERS SIMULTANEOUSLY LAUGHING AND GASPING OVER SUCH NECROPHILIA HERE HE DOESN'T MAKE MUCH OF IT READERS ALSO LEARN THAT THE FINAL CHAPTER OF THE NOVEL HAS BEEN SUPPRESSED BY MR ROTH AT THE REQUEST OF HIS ISRAELI HANDLER THAT CHAPTER CONTAINED A DESCRIPTION OF AUTHOR ROTH'S SECRET MISSION AT THE REQUEST OF ISRAELI INTELLIGENCE IT WAS CODENAMED OPERATION SHYLOCK ALTHOUGH MR ROTH DOESN'T PERMIT US TO READ THE FULL ACCOUNT HE DOES ALLOW HIS ISRAELI HANDLER TO PROCLAIM YOU DID IT EXPERTLY THAT'S NOT THE ONLY PRAISE BESTOWED ON AUTHORCHARACTER ROTH WE ALSO LEARN THAT THE MISTRESS AFTER HER NIGHT WITH HIM DREAMED OF HIM LONGED FOR HIM AS MR ROTH HAS SO OFTEN DEMONSTRATED IF YOU WRITE THE STORIES YOU GET TO MAKE THE RULES 9303190099 930319 PATHMARK PLAN TO OFFER STOCK ISN'T A CUREALL A DEBTLADEN STORE CHAIN WOULD STILL FACE WOES IN SLUGGISH MARKET AREA BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE INITIAL PUBLIC OFFERING OF PATHMARK STORES INC WILL LEAVE A DEBTLADEN SUPERMARKET CHAIN STILL FIGHTING FOR PROFITS IN A SLUGGISH NORTHEASTERN SUPERMARKET ENVIRONMENT THE OFFERING OF 10 MILLION SHARES EXPECTED AT ABOUT 15 EACH IS PART OF A BROADBASED RECAPITALIZATION BY PATHMARK'S ULTIMATE PARENT SUPERMARKETS GENERAL HOLDINGS CORP THE PARENT 52OWNED BY MERRILL LYNCH CAPITAL MARKETS INC TOOK THE WOODBRIDGE NJ SUPERMARKET CHAIN PRIVATE IN A 1987 LEVERAGED BUYOUT TO FEND OFF A HOSTILE TAKEOVER BID BY DART GROUP CORP THE RECAPITALIZATION SEEKS TO REDUCE PATHMARK'S INTEREST EXPENSE AND PROVIDE FINANCIAL MUSCLE TO EXPAND SQUARE FOOTAGE BY 15 THROUGH A 275 MILLION PROGRAM OF REMODELING AND OPENING NEW STORES PATHMARK SAID ITS AVERAGE SUPER CENTER IS MORE THAN 50 LARGER THAN THE AVERAGE US SUPERMARKET AND EXPECTS NEW STORES WILL AVERAGE MORE THAN 63000 SQUARE FEET COMPARED WITH ITS CURRENT 48500SQUAREFOOT AVERAGE PATHMARK OPERATES 146 SUPERMARKETS IN THE NEW YORK/NEW JERSEY/PHILADELPHIA AREA AS WELL AS 33 FREESTANDING DRUGSTORES AND 138 PHARMACIES IN ITS SUPERMARKETS HOWEVER THE PLAN SHIFTS TO THE PROPOSED NEW PUBLIC COMPANY FROM THE PARENT ABOUT 200 MILLION IN 11 5/8 NOTES WHILE PAYING HOLDERS OF THE PARENT'S PREFERRED STOCK A 129 MILLION DIVIDEND THE PROPOSAL ALSO PAYS OFF ABOUT 13 BILLION IN PARENT COMPANY DEBT THE NEW COMPANY PLANS TO SELL 400 MILLION IN NEW SENIOR NOTES EXPECTS TO ARRANGE A 500 MILLION BANK LINE AND TAKE OTHER STEPS THAT WILL RAISE A TOTAL OF ALMOST 15 BILLION MERRILL LYNCH IS THE LEAD UNDERWRITER FOR THE PUBLIC OFFERING DESPITE THE CHANGES THE PROSPECTUS WARNS THAT PATHMARK WILL CONTINUE TO BE HIGHLY LEVERAGED AND HAVE SUBSTANTIAL DEBTSERVICE OBLIGATIONS PATHMARK SALES HAVE BEEN FLAT IN RECENT YEARS HOVERING AT AROUND 43 BILLION ANNUALLY AS THE COMPANY SLUGS IT OUT IN THE DIFFICULT NORTHEASTERN ECONOMY IN ITS FILING PATHMARK ASSERTED THAT SINCE ITS BUYOUT IN 1987 IT HASN'T REACHED EXPECTED GROWTH IN SALES AND EARNINGS BECAUSE OF THE RECESSION AND BECAUSE FOOD PRICES HAVE BEEN LOWER THAN ORIGINALLY EXPECTED INDEED THE PARENT IN THE LATEST FOURTH QUARTER ENDED JAN 30 WROTE DOWN BY 600 MILLION GOODWILL ON ITS BOOKS FROM THE BUYOUT GOODWILL IS THE PREMIUM PAID IN EXCESS OF ASSETS AFTER THE OFFERING PATHMARK WILL HAVE 373 MILLION SHARES OUTSTANDING AND A MARKET VALUE OF ABOUT 560 MILLION ASSUMING A 15ASHARE OFFERING PRICE THE PUBLIC WILL OWN NEARLY 27 OF THE COMPANY WITH THE REMAINING 73 HELD BY SUPERMARKETS GENERAL HOLDINGS EQUITABLE LIFE ASSURANCE SOCIETY OF THE US ALSO AN EQUITY INVESTOR IN SUPERMARKETS GENERAL HAS AGREED TO LEND THE NEW COMPANY 130 MILLION IN A PRIVATE PLACEMENT THE FILING SAYS THE VARIOUS RESTRUCTURING AND UNDERWRITINGS WILL COST THE COMPANY 386 MILLION IN FEES SUPERMARKETS GENERAL GIVES OFF SOMEWHAT MIXED SIGNALS CONCERNING ANOTHER WRINKLE IN THE PLAN THE DECISION OF THE BUYOUT GROUP TO RETAIN OWNERSHIP OF THE 33STORE RICKEL HOME CENTER BUSINESS AS WELL AS WAREHOUSING AND TRANSPORTATION OPERATIONS THAT SERVE PATHMARK RICKEL REPORTED A 206 MILLION LOSS BEFORE TAXES IN 1991 AND SOME PEOPLE FAMILIAR WITH THE TRANSACTION SAY THAT KEEPING RICKEL WOULD MAKE THE PATHMARK OFFERING LESS APPEALING BUT THE SUPERMARKETS GENERAL HOLDINGS FOURTHQUARTER EARNINGS REPORT SAID RICKEL OPERATING EARNINGS ROSE 274 FOR THE YEAR WHILE SALES FELL 16 BECAUSE OF STORE CLOSINGS AND IT SAID RICKEL'S MERCHANDISING AND RENOVATION PROGRAMS CONTINUE TO PRODUCE GOOD RESULTS ALTHOUGH SUPERMARKETS FACE INTENSE COMPETITION AND RAZORTHIN PROFIT MARGINS ANALYSTS AT STANDARD & POOR'S CORP NOTE THAT A SIMILAR REVERSE LBO HOME IMPROVEMENT CHAIN PAYLESS CASHWAYS INC SUCCESSFULLY WENT PUBLIC THIS MONTH A KEY FACTOR IN PATHMARK'S FUTURE RESULTS WILL BE ITS ABILITY TO REDUCE INTEREST EXPENSE SHEARSON LEHMAN BROTHERS ANALYST EDWARD COMEAU ASSERTED THAT SUPERMARKETS ARE SLOWLY CLIMBING OUT OF LAST YEAR'S WIDESPREAD DECLINES WHEN THEY WERE HIT HARD BY LOWER PRODUCE AND MEAT PRICES IT'S NOT A ROBUST ENVIRONMENT BUT IT'S IMPROVING HE SAID PATHMARK SAID IT EXPECTS TO REPORT THAT PRO FORMA SALES FOR THE FISCAL FOURTH QUARTER ENDED JAN 30 ROSE NEARLY 2 TO 113 BILLION FROM 111 BILLION ALTHOUGH SALES FOR THE YEAR WERE PRACTICALLY FLAT AT ABOUT 434 BILLION 9303190098 930319 INTERNATIONAL KOREAN GOVERNMENT WILL INTERVENE LESS TO HELP GET ECONOMY OUT OF ITS SLUMP BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA PRESSURED BY THE SPECTER OF ZERO ECONOMIC GROWTH FOR THE FIRST TIME IN MORE THAN A DECADE THE KOREAN GOVERNMENT THIS WEEK USHERED IN A RAFT OF STIMULATIVE REFORMS THAT WILL MARKEDLY REDUCE ITS ROLE IN BUSINESS BUT THE MEASURES WHICH REVERSE A TWOYEAR AUSTERITY PROGRAM COULD FORESTALL MORE AMBITIOUS AND POLITICALLY PAINFUL PLANS TO BRING KOREA'S FINANCIAL SYSTEM IN LINE WITH GLOBAL STANDARDS SOME ANALYSTS ARE ALSO CONCERNED THE PACKAGE COULD FLUSH THE ECONOMY OUT OF ITS SLUMP PREMATURELY DEPRIVING IT OF A BADLY NEEDED SPUR TO RESTRUCTURE SINCE HIS INAUGURATION THREE WEEKS AGO PRESIDENT KIM YOUNG SAM HAS MADE ECONOMIC REVITALIZATION THE CENTERPIECE OF HIS ADMINISTRATION EVEN NORTH KOREA'S DECISION LAST WEEK TO WITHDRAW FROM THE NUCLEAR NONPROLIFERATION TREATY WHICH HEIGHTENED FEARS IT IS DEVELOPING ATOMIC WEAPONS HASN'T OVERSHADOWED THE ECONOMY AS A NATIONAL PRIORITY MR KIM IS SCHEDULED TO GIVE A SPECIAL ADDRESS TODAY OUTLINING HIS ECONOMIC STRATEGY FOR THE NEXT 100 DAYS HAVING ROARED THROUGH THE 1980S WITH NEAR DOUBLEDIGIT AVERAGE GROSS NATIONAL PRODUCT GROWTH KOREAN BUSINESS IS STRUGGLING WITH HIGH WAGES AND FINANCING COSTS ANALYSTS SAY THE ECONOMY GREW AT AN ANNUAL RATE OF ABOUT 5 IN 1992 DOWN FROM 84 THE PREVIOUS YEAR BUT WITH ANALYSTS FORECASTING STAGNANT GROWTH FOR THIS YEAR'S FIRST QUARTER PUMP PRIMERS HAVE ASSUMED COMMAND LATE LAST WEEK MR KIM REPLACED THE CENTRAL BANK'S TIGHTFISTED GOVERNOR WITH A MORE FLEXIBLE SUCCESSOR A DAY LATER THE GOVERNMENT SAID IT WOULD POSTPONE SEVERAL KEY COMPONENTS OF THE COUNTRY'S LONGRANGE FINANCIAL REFORM PLAN INCLUDING INTEREST RATE DEREGULATION AND A MORE TRANSPARENT ACCOUNTING SYSTEM ON WEDNESDAY THE MINISTRY OF FINANCE ANNOUNCED SWEEPING REFORMS AIMED AT PROMOTING EVERYTHING FROM CONSUMER SPENDING TO CAPITAL INVESTMENT THE SCOPE OF THE DEREGULATION SCHEDULED FOR THIS YEAR SUGGESTS THE ECONOMY IS HEADED FOR A DEEPER SLIDE THAN ANALYSTS EXPECTED THE REFORMS REVERSED A GOVERNMENT EDICT ISSUED IN 1991 TO CURB KOREA'S DOUBLEDIGIT INFLATION BY DISCOURAGING PURCHASE OF SUCH LUXURY ITEMS AS FUR COATS GOLFCLUB DEBENTURES AND FOREIGN CARS THE GOVERNMENT ALSO DISMANTLED RULES HAMPERING SMALL COMPANIES FROM RAISING FUNDS THROUGH CORPORATE BOND ISSUES ON LOCAL AND OVERSEAS CAPITAL MARKETS PRESENT LIMITS ON RAISING CAPITAL BY SMALL ENTERPRISES IS ONE REASON KOREA'S CORPORATE SECTOR IS DOMINATED BY A HANDFUL OF FAMILY RUN CONGLOMERATES KNOWN AS CHAEBOLS THE AUSTERITY IS OVER SAID STEPHEN E MARVIN HEAD OF RESEARCH AT THE SEOUL BRANCH OF JARDINE FLEMING SECURITIES LTD THIS SHOULD SIGNIFICANTLY IMPROVE LIQUIDITY FOR SMALL TO MIDSIZED COMPANIES IT SHOULD ALSO APPEASE THE CHAEBOLS WHICH ARE SUFFERING FROM HEAVY DEBT LEVELS AND RISING INVENTORIES IN PARTICULAR THE REFORMS WILL MAKE IT EASIER FOR COMPANIES TO DIVERT FUNDS FROM A HEALTHY AFFILIATE INTO AN AILING ONE A PRACTICE THAT WAS SUPPOSED TO BE PHASED OUT THIS YEAR WITH THE INTRODUCTION OF CONSOLIDATED ACCOUNTING THAT REFORM APPEARS TO HAVE BEEN SHELVED SIMILARLY THE STIMULATIVE MEASURES FALL SHORT OF ATTACKING WHAT BANKERS CONSIDER THE TAPROOT OF THE ECONOMY'S LIQUIDITY PROBLEMS GOVERNMENT CONTROLS ON LENDING AND INTEREST RATES AND PREFERRED CREDIT TERMS FOR CERTAIN LARGE COMPANIES ANALYSTS SAY THE REFORMS IF IMPLEMENTED AGGRESSIVELY COULD WORK BUT A RAPID RECOVERY MAY NOT BE IN THE LONGTERM BEST INTERESTS OF CORPORATE KOREA MANY ANALYSTS SAY A CYCLICAL RECESSION ACCOMPANIED BY STRUCTURAL REFORMS IS THE ONLY SURE WAY TO MELT THE CORPORATE FAT GENERATED DURING THE GOGO 1980S TOO MANY OF THE CHAEBOLS ARE STILL SHOULDERING DEBT TAKEN ON WHEN THE GOVERNMENT WAS OFFERING UNOFFICIAL LOAN GUARANTEES TO PROMOTE STRATEGIC INDUSTRIES AND A PROLONGED PERIOD OF LOW INTEREST RATES ARE CRITICAL TO DEBTRESTRUCTURING THE COUNTRY'S FORMIDABLE LABOR UNIONS ARE STILL BELLOWING FOR UNREALISTIC WAGE HIKES AND THE COLD SHOCK OF ZEROTONEGATIVE ECONOMIC GROWTH COULD COMPEL THEM TO MODERATE THEIR DEMANDS 9303190097 930319 THAILAND'S CPI ROSE IN FEBRUARY BANGKOK THAILAND'S CONSUMER PRICES ROSE 08 IN FEBRUARY FROM JANUARY AND WERE UP 33 FROM FEBRUARY 1992 THE BANK OF THAILAND SAID THE CONSUMER PRICE INDEX ROSE TO 1329 IN THE LATEST MONTH FROM 1319 IN JANUARY AND 1287 A YEAR AGO THE CENTRAL BANK SAID ON A MOVING AVERAGE BASIS WHICH AVERAGES THE INDEX OVER 12 MONTHS AND COMPARES IT WITH THE YEAR BEFORE CONSUMER PRICE INFLATION SLOWED TO 38 IN FEBRUARY FROM 40 IN JANUARY THE BANK OF THAILAND SAID THE MOVING AVERAGE RATE WAS 55 IN FEBRUARY 1992 WHOLESALE PRICES MEANWHILE ROSE 09 IN FEBRUARY FROM JANUARY AND 02 FROM FEBRUARY LAST YEAR ON A MOVING AVERAGE BASIS THE WHOLESALE PRICE INDEX WAS UP 02 IN FEBRUARY EXPORT PRICES WERE UNCHANGED IN FEBRUARY FROM JANUARY AND WERE UP 02 FROM FEBRUARY 1992 THE EXPORT PRICE INDEX WAS UP 19 IN FEBRUARY ON A MOVING AVERAGE BASIS THE CENTRAL BANK SAID 9303190096 930319 TOKYO BOUNCE JAPANESE STOCKS SURGE BUT REASONS FOR RISE MAKE SOME QUEASY GOVERNMENT SPURS REBOUND BY PUSHING SHARE BUYING AND CURBING NEW ISSUES NO STOMACH FOR FREE MARKETS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IS THE WORST BEAR MARKET IN JAPAN'S POSTWAR HISTORY ONE THAT HAS CRIPPLED THE WORLD'S SECONDLARGEST STOCK MARKET FINALLY OVER IF SO THE REBOUND IS LIKE NO OTHER THERE ARE TANTALIZING SIGNS THAT THE VOLATILE NIKKEI STOCK AVERAGE MAY HAVE PULLED OUT OF ITS SICKENING THREEYEAR SWOON IN THE PAST TWO WEEKS THE MARKET HAS JUMPED 12 LIFTING THE VALUE OF STOCKS HERE BY 23 TRILLION YEN 199 BILLION ON THURSDAY ALONE THE NIKKEI SHOT UP 555 POINTS OR 31 TO CLOSE AT 18728 ITS HIGHEST LEVEL IN MORE THAN SIX MONTHS THE MARKET WAS OFF A SLIGHT 3251 POINTS IN THE MORNING TRADING SESSION FRIDAY INVESTOR SENTIMENT HERE CLEARLY IS UNDERGOING A SEA CHANGE TRADERS AND STRATEGISTS WHO JUST WEEKS AGO WERE PREDICTING A FLAT MARKET AT BEST AND A FALL TO 6000 ON THE NIKKEI AT WORST ARE NOW BUYING SUDDENLY A NEW SPECIES IS NOSING AROUND THE OHTEMACHI FINANCIAL DISTRICT TENTATIVE BULLS IN JANUARY I EXPECTED THE MARKET TO GO TO 14000 SAYS EINOSUKE YOSHINO A FUND MANAGER FOR CAPITAL RESEARCH INTERNATIONAL NOW HE SAYS THIS MARKET MAY HIT 25000 BY MARCH 1994 BUT WHAT'S MOST EXTRAORDINARY IS WHY ALL THIS IS HAPPENING ECONOMIC FUNDAMENTALS AN EXPECTED JUMP IN CORPORATE PROFITS GUESS AGAIN THE STUNNING RUNUP IN STOCKS HAS BEEN SPARKED MAINLY BY THE SUCCESS OF SOMETHING ALTOGETHER ANTITHETICAL TO FREE MARKETS A MAMMOTH INTERVENTION BY THE JAPANESE GOVERNMENT SINCE AUGUST THE FINANCE MINISTRY HAS TWISTED ARMS AND ORCHESTRATED A BUYING BINGE USING GOVERNMENTCONTROLLED SAVINGSACCOUNT MONEY AND PENSION FUNDS TO SUPPORT STOCK PRICES THE OBJECTIVE OF THE GOVERNMENT'S BET ESTIMATED AT 42 TRILLION YEN IN THIS FISCAL YEAR IS TO STAVE OFF THE COLLAPSE OF COMPANIES THAT INVESTED HEAVILY IN THE MARKET DURING THE SPECULATIVE SPLURGE OF THE LATE 1980S AND ARE NOW PARALYZED BY THEIR SICK PORTFOLIOS IT'S A RISKY ROLL OF THE DICE INVESTORS COULD PANIC THE MARKET COULD SPIN OUT OF THE GOVERNMENT'S CONTROL A LOT OF TAXPAYER MONEY COULD EVAPORATE AND THE ECONOMIC SLUMP COULD DEEPEN POSSIBLY WITH GLOBAL REPERCUSSIONS IN ADDITION TO ENCOURAGING STOCK PURCHASES THE GOVERNMENT HAS IMPOSED A VIRTUAL FREEZE ON EQUITY FINANCING TO KEEP NEW STOCK FROM DRIVING DOWN PRICES TO PREVENT FURTHER INSTABILITY IT HAS HELD UP DEREGULATION OF THE FINANCIAL INDUSTRY AND IT HAS BEEN PRESSURING BEARISH STOCK ANALYSTS TO SOUND OPTIMISTIC ELEMENTS OF THE REGULATORS' STRATEGY HAVE BEEN WIDELY REPORTED FOR MONTHS BUT EVEN THOUGH THE GOVERNMENTSUPPORTED MARKET ROSE LAST YEAR FROM ITS LOWS AND STABILIZED AROUND 16500 MANY TRADERS FEARED THE GOVERNMENT MIGHT LOSE ITS BIG WAGER IT IS THIS SENTIMENT THAT HAS CHANGED THE VAST MAJORITY OF MARKET STRATEGISTS HERE ARE NOW BETTING ON THE FINANCE MINISTRY THEY ARE EMBOLDENED BY SIGNS THAT THE GOVERNMENT IS SETTING ASIDE EVEN MORE MONEY TO BUY STOCKS AND STIMULATE THE ECONOMY THEY ARE CHEERED TOO BY THE FACT THAT A CRITICAL DATE MARCH 31 THE DAY THE FISCAL YEAR ENDS AND JAPAN'S CORPORATIONS CLOSE THEIR BOOKS HAS NEARLY ARRIVED WITHOUT A MARKET COLLAPSE TRADERS HAD FEARED THAT COMPANIES WOULD SELL OFF STOCKS TO SPIFF UP THEIR BALANCE SHEETS IN ADVANCE OF THE CLOSING BUT TO THEIR SURPRISE PEOPLE ARE BUYING NOT SELLING EVERYBODY WHO GAVE UP ON THE STOCK MARKET IS BACK THE LIFE INSURERS THE INVESTMENT TRUSTS AND FOREIGNERS SAYS MARK ARIMURA DIRECTOR OF EQUITY DERIVATIVES AT SALOMON BROTHERS ASIA LTD TWO WEEKS AGO STOCK TRADING WAS SO SLOW THAT DEALERS IN THE ARENASIZED TOKYO STOCK EXCHANGE SPENT THE DAY READING NEWSPAPERS AND WANDERING AROUND NOW THEY'RE WORKING FLAT OUT FEVERISHLY FIELDING CALLS AND SHOUTING ORDERS BUT WATCH OUT IN THE PAST THREE YEARS THE NIKKEI HAS REPEATEDLY BURNED THE ADVENTUROUS RIGHT NOW THE HERD IS INTOXICATED WITH THE SCENT OF GOVERNMENT PRICE SUPPORT AND LITTLE ELSE WITH SUCH SLIGHT REASON FOR BUYING STOCKS MARKET SENTIMENT COULD QUICKLY SWING JUST AS WILDLY TO THE SELL SIDE WHAT'S MORE MARKET INTERVENTION OF THIS SORT COULD BRING SERIOUS PROBLEMS THAT MIGHT IN THE LONG RUN UNDERMINE THE MARKET'S CREDIBILITY AND ITS ABILITY TO REWARD SUCCESSFUL COMPANIES AND PUNISH THE LAGGARDS AFTER BEING HERE NINE YEARS I FEEL LIKE I'M LIVING IN A JOKE SAYS JAMES WALSH PRESIDENT OF PRUDENTIAL SECURITIES JAPAN LTD WHICH LAST YEAR LAID OFF 70 PEOPLE AND SHUT ITS OSAKA OFFICE AS PART OF A STRATEGIC MOVE AWAY FROM JAPANESE STOCKS YOU GO BACK TO THE STATES AND PEOPLE LAUGH THE GOVERNMENT'S MASSIVE INTERVENTION IN THE STOCK MARKET SAYS A LOT ABOUT THE WAY JAPAN WORKS CONTROL IS HIGHLY VALUED HERE AND SO IS PREDICTABILITY THIS IS THE NATION OF MANAGED TRADE AND A MANAGED ECONOMY A FREE MARKET CONJURES UP A TERRIFYING IMAGE OF CHAOS WE HAVE TO DO WHATEVER IS NECESSARY TO STOP STOCK PRICES FROM FALLING FREELY SAYS YUJI TSUSHIMA A POLITICIAN WHO HELPED DEVISE THE MARKETSUPPORT STRATEGY HE SLAMS HIS FIST ON HIS CHAIR THERE ARE INSTANCES WHERE THE AUTHORITIES SHOULD SHUT DOWN THE MARKET BUT I DON'T THINK THAT WILL HAPPEN IN THE SHORT TERM INSTEAD THE GOVERNMENT IS COUNTING ON PERSUASION AS WELL AS ITS DEEP POCKETS WHEN THE NIKKEI FELL BELOW 16000 LAST NOVEMBER INSURANCE COMPANIES AND FUND MANAGERS WHO HANDLE GOVERNMENT MONEY SAY THEY GOT FINANCE MINISTRY CALLS ASKING THEM WHY THEY WEREN'T BUYING THE MESSAGE WAS CLEAR AND THE NEXT DAY THE NIKKEI ROCKETED 785 POINTS ON A 79 INCREASE IN TRADING VOLUME FAR FROM LETTING FINANCIAL DARWINISM WEED OUT WEAK BROKERAGE FIRMS THE GOVERNMENT ONE FUND MANAGER SAYS TOLD HIM AND OTHERS EXACTLY HOW TO PARCEL OUT ITS ORDERS IF SOMEBODY HAS A 16 MARKET SHARE THEY GET 16 OF THE ORDERS HE SAYS THE REGULATORS DON'T WANT TO DISTURB THE NATURAL PECKING ORDER AT THE SAME TIME THE GOVERNMENT HAS BEEN PRESSURING COMPANIES TO HANG ONTO THEIR PORTFOLIOS IN EXCHANGE FOR NOT DUMPING STOCKS THE FINANCE MINISTRY HAS GRANTED SPECIAL ACCOUNTING PROVISIONS TO COOPERATIVE INDUSTRIES LIFE INSURERS DON'T HAVE TO DECLARE FOREIGNEXCHANGE LOSSES REGIONAL BANKS NEED NOT DISCLOSE BAD DEBTS TRUST BANKS CAN SAY THEY'RE GETTING INCOME FROM TRUSTACCOUNT LOANS EVEN IF THE BORROWER HASN'T PAID INTEREST IN SIX MONTHS IT'S ALL IN EXCHANGE FOR THE FINANCIAL INSTITUTIONS AGREEING NOT TO SELL STOCKS SAYS ALICIA OGAWA A FINANCIAL ANALYST AT SALOMON BROTHERS ASIA THERE'S A LIMIT TO HOW MUCH THE GOVERNMENT CAN BUY SO THEY MAKE OTHERS STOP SELLING THERE'S ALSO PRESSURE INSIDE THE FINANCIAL INDUSTRY TO KEEP THE MOOD POSITIVE REGARDLESS OF ONE'S TRUE ATTITUDE AND REGARDLESS OF A CLIENT'S DESIRE FOR ACCURATE ANALYSIS WHEN I WAS WRITING SKEPTICALLY ABOUT THE GOVERNMENT RESCUE LAST AUGUST RECALLS ONE SECURITIES ANALYST I WAS TOLD BY MANAGEMENT NOT TO SAY ANYTHING IF I COULDN'T SAY ANYTHING NICE THE UNOFFICIAL BAN ON NEW STOCK ISSUES AND ADDITIONAL REGULATIONS MEANT TO DISCOURAGE EQUITYLINKED FINANCING HAVE SUCCEEDED IN KEEPING NEW STOCK OFF THE MARKET IN 1989 COMPANIES RAISED 56 TRILLION YEN THROUGH PUBLIC OFFERINGS ON THE TOKYO EXCHANGE LAST YEAR WITH DEPRESSED PRICES MAKING IT EVEN MORE UNATTRACTIVE TO SEEK EQUITY FINANCING THE AMOUNT RAISED PLUNGED TO 12 BILLION YEN NOT SURPRISINGLY COMPANIES IN NEED OF CASH AREN'T HAPPY TOENEC CORP AN ELECTRICAL ENGINEERING CONTRACTOR CAN'T TAP THE EQUITYLINKED FINANCE MARKET DESPITE AN A+ CREDIT RATING AND 19 CONSECUTIVE YEARS OF PROFITABILITY SAYS NIIZO ISHIKAWA HEAD OF ACCOUNTING I UNDERSTAND THE GOVERNMENT IS TRYING TO KEEP COMPANIES FROM ISSUING STOCK BUT THEY DREW THE LINE TOO CRUDELY HE COMPLAINS TOENEC HAS HAD TO ISSUE CORPORATE BONDS TO RAISE THE MONEY IT NEEDS A MOVE THAT WILL INCREASE THE COMPANY'S FINANCING BILL BY 200 MILLION YEN A YEAR ABOVE WHAT THE COST OF GOING TO THE STOCK MARKET WOULD HAVE BEEN JAPAN'S GOVERNMENT OF COURSE ISN'T THE ONLY ONE THAT INTERVENES IN FINANCIAL MARKETS WHEN PRICES DON'T MOVE THE WAY IT WANTS GOVERNMENTS ROUTINELY PLUNGE INTO THE CURRENCY MARKETS AND AFTER THE OCTOBER 1987 STOCKMARKET CRASH IN THE US THE FEDERAL RESERVE POURED FUNDS INTO THE US BANKING SYSTEM DRIVING DOWN INTEREST RATES TO HELP SUPPORT STOCK PRICES BUT THOSE WERE SHORTTERM MEASURES COMPARED WITH WHAT'S GOING ON IN JAPAN MEMORIES OF THE SPECULATIVE BUBBLE OF THE LATE 1980S ARE STILL FRESH IN THE MINDS OF REGULATORS AND MOST WANT TO KEEP ITS WHIPLASH EFFECTS FROM RECURRING ROCKBOTTOM INTEREST RATES FUELED THAT SURGE IN STOCK AND LAND PRICES UNTIL THE CENTRAL BANK CHOKED OFF THE CHEAP CAPITAL AND SENT THE INFLATED ASSET VALUES TUMBLING THE DAMAGE TO CORPORATE JAPAN ESPECIALLY THE BANKS WHICH HAD LENT HEAVILY TO LAND AND STOCK SPECULATORS HAS BEEN STAGGERING THUS THE GOVERNMENT'S WIDERANGING STEPS TO KEEP STOCK PRICES FROM FALLING FURTHER PEOPLE IN CHARGE AREN'T ALLOWING TRUE MARKET FORCES TO ACT IN THE SECONDLARGEST ECONOMY IN THE WORLD SAYS TERRY MASON A PORTFOLIO MANAGER AT MARVIN & PALMER ASSOCIATES THAT SCARES ME I HAVE NO WAY OF KNOWING WHAT THE REAL VALUE OF ANY JAPANESE STOCK IS SOME ANALYSTS ESTIMATE THAT IF THE GOVERNMENT STEPPED OUT OF THE MARKET THE NIKKEI WHICH AT THURSDAY'S CLOSE WAS STILL OFF 52 FROM ITS 1989 HIGH WOULD QUICKLY PLUMMET TO 12000 THE MARKET IS ALL THE MORE VULNERABLE BECAUSE THE AVERAGE PRICE/EARNINGS RATIO HERE IS A STRATOSPHERIC 63 THAT'S BELOW THE 71 IT HIT IN 1989 BUT WELL ABOVE THE RATIOS IN OTHER MAJOR MARKETS I'D SAY THAT IN THE NEXT TWO YEARS THERE WILL BE BLIPS LIKE THIS THE CURRENT RALLY WHERE YOU CAN MAKE MONEY IF YOU SPOT THE FLOW PRUDENTIAL'S MR WALSH SAYS BUT IT'S DANGEROUS THERE ARE NO ECONOMIC FUNDAMENTALS TO DRIVE IT THAT'S A BIG POINT OF CONTENTION IN TOKYO IS THE ECONOMIC RECOVERY SO FAR OFF IN THE FUTURE THAT THERE'S NO REASON FOR STOCK PRICES TO BE RISING OR IS THE MARKET ACCURATELY PREDICTING A REBOUND FOR SIX MONTHS NO ONE WANTED TO HEAR MY OPTIMISTIC STORY OF THE ECONOMY SAYS ROBERT FELDMAN CHIEF ECONOMIST AT SALOMON BROTHERS ASIA NOW THEY'RE LISTENING MOST HEARTENING HE SAYS ARE SIGNS THAT THE MONEY SUPPLY HAS STOPPED SHRINKING AND THAT THE RATIO OF JOB OFFERS TO JOB SEEKERS IS IMPROVING HE BELIEVES THE REBOUND WILL COME SOONER AND WILL BE STRONGER THAN CONVENTIONAL WISDOM HOLDS OTHERS AREN'T SO SURE WE'VE HAD A CHANGE IN SENTIMENT BUT IT HAS NO UNDERPINNING IN ECONOMIC FUNDAMENTALS SAYS NOBORU KAWAI A MORGAN STANLEY JAPAN LTD ECONOMIST THE NIKKEI'S RISE HE SAYS MERELY REFLECTS AN INCREASE IN THE NUMBER OF INVESTORS WILLING TO TAKE SHORTTERM ADVANTAGE OF THE GOVERNMENTMANIPULATED MARKET INDEED RECENT ECONOMIC DATA OFFER LITTLE CAUSE FOR CHEER LAST WEEK THE GOVERNMENT REPORTED THAT GROSS NATIONAL PRODUCT JAPAN'S TOTAL OUTPUT OF GOODS AND SERVICES EXPANDED AT AN INFLATIONADJUSTED ANNUAL RATE OF ONLY 05 IN THE DEC 31 QUARTER EVEN THAT FIGURE WAS STRONGER THAN EXPECTED IN PART BECAUSE THE GOVERNMENT REVISED DOWNWARD ITS ESTIMATE FOR GROWTH IN THE SEPT 30 QUARTER THE ECONOMY'S MAIN ENGINES OF GROWTH BUSINESS INVESTMENT AND CONSUMER SPENDING SPUTTERED BADLY SEVERAL LEADING FINANCIAL INSTITUTIONS SEE CORPORATE PROFITS DROPPING 20 IN THE MARCH 31 FISCAL YEAR AND SINKING AGAIN NEXT YEAR TOO MR KAWAI LIKE MANY OTHER ECONOMISTS BELIEVES THAT GNP IS CONTRACTING IN THE CURRENT QUARTER NONETHELESS THE MARKET BULLS BELIEVE THERE'S NO PERCENTAGE IN FIGHTING THE FEDS THE RALLY BEGAN IN EARNEST MARCH 8 AFTER JAPAN'S FINANCIAL PRESS SUGGESTED THAT THE GOVERNMENT MIGHT SOON UNVEIL A NEW SET OF FISCAL MEASURES INCLUDING NEW PUBLIC SPENDING PROGRAMS AND INCOMETAX CUTS TO BOLSTER THE ECONOMY SOME OBSERVERS THINK THE STIMULUS PACKAGE WILL EXCEED 11 TRILLION YEN AND WILL BE MADE FINAL AS EARLY AS NEXT MONTH STRONG GOVERNMENT MARKET INTERVENTION ON MARCH 8 WAS SOON DWARFED BY BIG BUY ORDERS FROM MORGAN STANLEY JAPAN WHICH UNTIL RECENTLY HAD BEEN ONE OF TOKYO'S MOST DOUR BEARS MANY TRADERS BELIEVE MORGAN STANLEY CONCLUDED THAT THE GOVERNMENT WASN'T GOING TO STOP SUPPORTING THE MARKET ANYTIME SOON SO IT DECIDED TO TAKE SOME OF THE GRAVY THEN ANIMAL SPIRITS KICKED IN NO ONE WANTS TO MISS A RALLY MANY TRADERS DECIDED TO BUY INTO THE UPTREND IN ADDITION TRADERS HAVE BEEN CIRCULATING THE MINUTES OF A LATEFEBRUARY MEETING BETWEEN MEMBERS OF THE RULING LIBERAL DEMOCRATIC PARTY AND LEADERS IN THE JAPANESE SECURITIES INDUSTRY ACCORDING TO ONE OF THE PARTICIPANTS AT THE MEETING THE GOVERNMENT OFFICIALS PROMISED MORE SPENDING TO SUPPORT THE MARKET IN THE MONTHS TO COME THE EXTRA MONEY MAY BE NEEDED AFTER THE CORPORATE BOOKS CLOSED LAST MARCH 31 THE NIKKEI PLUMMETED BUT CRAIG CHUDLER A STRATEGIST AT UBS PHILLIPS & DREW INTERNATIONAL EXPECTS ENOUGH SUPPORT TO BE ON HAND NEXT MONTH HE SAYS GOVERNMENT BUYING IN THE MARKET THIS FISCAL YEAR HAS FAR OUTSTRIPPED THAT OF PREVIOUS YEARS AND ISN'T LIKELY TO STOP FROM HERE ON HE CONTENDS THE GOVERNMENT IS GOING TO SPEND AS MUCH AS IT CAN FOR AS LONG AS IT TAKES TO GET THE ECONOMY UP AND RUNNING 9303190095 930319 HEWLETTPACKARD SAYS SUIT FAILS PALO ALTO CALIF HEWLETTPACKARD CO SAID A FEDERAL JUDGE SIGNED AN ORDER DISMISSING A CLASSACTION LAWSUIT THAT ALLEGED SECURITIESLAW VIOLATIONS AGAINST THE COMPUTER MAKER AND SOME OF ITS OFFICERS AND DIRECTORS THE SUIT WAS FILED IN AUGUST AFTER HEWLETTPACKARD'S COMMON STOCK DECLINED ON AN ANNOUNCEMENT THAT THE COMPANY'S RESULTS FOR ITS 1992 FISCAL THIRD QUARTER WOULDN'T MEET ANALYSTS' EXPECTATIONS RESULTS FOR THE QUARTER ENDED JULY 31 DID DECLINE 9303190093 930319 ADVERTISING FIZDALE QUITS CEO POSITION AT LEO BURNETT BY KEVIN GOLDMAN IN A SURPRISING ABDICATION RICHARD B FIZDALE STEPPED DOWN FROM HIS ROLE AS CHIEF EXECUTIVE OFFICER OF LEO BURNETT CO IN PART TO FOCUS ON RESCUING OR RESTORING TWO OF THE AGENCY'S MOST IMPORTANT AND TROUBLED ACCOUNTS OLDSMOBILE AND MILLER LITE WITH COMBINED BILLINGS EXCEEDING 235 MILLION MR FIZDALE WAS NAMED TO THE TOP POSITION ONLY 15 MONTHS AGO BUT APPARENTLY THE 53YEAROLD EXECUTIVE WHO RETAINS THE TITLES OF CHAIRMAN AND CHIEF CREATIVE OFFICER NEVER BECAME COMFORTABLE WITH THE BUSINESS SIDE OF RUNNING AN AGENCY INSTEAD PREFERRING THE CREATIVE SIDE OF MADISON AVENUE HE WAS THE FIRST CHIEF EXECUTIVE TO COME FROM THE AGENCY'S CREATIVE SIDE SINCE LEO BURNETT HIMSELF RETIRED IN 1967 SUCCEEDING MR FIZDALE AS CHIEF EXECUTIVE IS WILLIAM T LYNCH 50 WHO WILL ALSO KEEP HIS CURRENT TITLE AS THE AGENCY'S PRESIDENT THE UNEXPECTED MOVE COMES LESS THAN SEVEN WEEKS AFTER THE CHICAGOBASED ADVERTISING AGENCY SCORED A MOST IMPRESSIVE COUP OF KEEPING THE 125 MILLION OLDSMOBILE ACCOUNT AFTER A STRENUOUS FOURMONTH REVIEW HAD PUT IT UP FOR GRABS BUT PERSISTENT SPECULATION HAS HAD LEO BURNETT IN POSSIBLE TROUBLE ON THE MILLER LITE ACCOUNT AFTER IT ENGINEERED THE MUCHMALIGNED SWITCH TO THE NEW SLOGAN IT'S IT AND THAT'S THAT MR FIZDALE TOLD ASSOCIATES ON BURNETT'S EXECUTIVE COMMITTEE AS WELL AS CLIENTS THAT HE WANTED TO RELINQUISH THE CHIEF EXECUTIVE RESPONSIBILITIES AND CONCENTRATE ENTIRELY ON THE TWO BIG CLIENTS BOTH ACCOUNTS PRESENT FORMIDABLE CHALLENGES TO MR FIZDALE WHO JOINED THE AGENCY IN 1969 AS A COPYWRITER AND WHOSE HOBBIES INCLUDE COLLECTING ART AND CHRONICLING THE HISTORY OF ROCKANDROLL TO RETAIN THE OLDS BUSINESS FOR INSTANCE BURNETT HAD TO SHUT ITS 105PERSON OFFICE IN SOUTHFIELD MICH AND HAVE THE AUTOMOTIVE AD BUSINESS HANDLED OUT OF CHICAGO HEADQUARTERS WITH MR FIZDALE PERSONALLY ROLLING UP HIS SLEEVES AND OVERSEEING THE WORK MR FIZDALE'S RELINQUISHING THE CHIEF EXECUTIVE STRIPES ALBEIT VOLUNTARILY MAY BE A PREEMPTIVE STRIKE AIMED AT STOPPING ANY DISSATISFIED BURNETT CLIENTS FROM WALKING OUT THE DOOR RICK ADMITTED TO OLDS THAT BURNETT'S SOUTHFIELD OFFICE WASN'T GOOD ENOUGH TO SERVICE THE ACCOUNT SAYS ONE HIGHLY PLACED MADISON AVENUE EXECUTIVE HE WAS VERY SMART WITH OLDS HE OFFERED THEM BASICALLY A NEW AD AGENCY THIS ONE BASED IN CHICAGO HEADED BY HIMSELF NOW MR FIZDALE SIMILARLY WILL HAVE TO TURN HIS ATTENTION TO MILLER LITE ALTHOUGH HE REFUSED IN AN INTERVIEW TO COMMENT ON ANY ASPECT OF THE MILLER ACCOUNT THE CREATIVE TEAM AT BURNETT CLEARLY STUMBLED WITH VARIOUS EXECUTIONS AFTER SHELVING THE LONGRUNNING AND POPULAR CAMPAIGN OF JOCKS DEBATING TASTES GREAT/LESS FILLING ONE NEW COMMERCIAL HAD SPACE ALIENS BOOGIEING TO A 1950S TUNE CONTAINING THE MILLER LITE SLOGAN DU JOUR C'MON LET ME SHOW YOU WHERE IT'S AT HIS FORMAL STEPPING ASIDE WASN'T PLANNED TO BE ANNOUNCED UNTIL TODAY AT FIRST MR FIZDALE DECLINED TO COMMENT LATE YESTERDAY AFTERNOON ON THE POSSIBILITY THAT HE WOULD GIVE UP THE CHIEF EXECUTIVE OFFICE CITING A BURNETT BOARD MEETING SCHEDULED FOR TODAY LESS THAN 45 MINUTES LATER HOWEVER BURNETT RELEASED AN ANNOUNCEMENT OF THE MOVES BY WAY OF EXPLANATION OF THE FASTMOVING EVENTS MR FIZDALE SAID THE BOARD THOSE MEMBERS WHO WERE IN TOWN THAT IS SUDDENLY CONVENED HIS SUCCESSOR AS CHIEF EXECUTIVE MR LYNCH CLEARLY SEEMS TO THINK THAT MR FIZDALE'S RENEWED ATTENTION ON THE CREATIVE SIDE IS NEEDED ASKED TO COMMENT ON THE PERCEPTION THAT THE CREATIVE WORK ON THE MILLER LITE ACCOUNT IS LACKING MR LYNCH RESPONDED TO BE BLUNT THE CLIENT WILL AGREE WITH YOU MILLER IS HAPPY BUT NOT ECSTATIC WITH THE EFFORT HE SAYS MR LYNCH SAYS BURNETT WILL CONCENTRATE ON ITS EXISTING CLIENTS SUCH AS FRUIT OF THE LOOM OLDS AND MILLER LITE AND NOT AGGRESSIVELY PURSUE NEW BUSINESS THE AGENCY IS A FINALIST HOWEVER IN THE ESTIMATED 25 MILLION HYATT HOTELS REVIEW INTERPUBLIC GROUP'S MCCANNERICKSON NEW YORK SHAKEN BY THE PRESENCE OF TALENT AGENCY CREATIVE ARTISTS AGENCY ON ITS BIG COCACOLA ACCOUNT NAMED THREE CREATIVE EXECUTIVES TO HEAD UP ITS INTERNATIONAL CREATIVE OUTPUT THE TEAM APPROACH COMES IN THE WAKE OF THE RECENT ABRUPT DEPARTURE OF GORDON BOWEN THE CREATIVE GURU HIRED IN 1991 TO OVERSEE WORLDWIDE CREATIVE WORK ON THE COCACOLA ACCOUNT AND MANAGE THE AGENCY'S NEW YORK OFFICE THE THREE EXECUTIVES ARE BRUCE NELSON AGE 41 EXECUTIVE VICE PRESIDENT AND DIRECTOR OF STRATEGIC CREATIVE SERVICES WHO IS NOW IN CHARGE OF GLOBAL CREATIVE WORK ON THE COCACOLA AND NESTLE ACCOUNTS MARCIO MOREIRA AGE 45 VICE CHAIRMAN AND CHIEF CREATIVE OFFICER WHO WILL OVERSEE INTERNATIONAL CAMPAIGNS FOR UNILEVER AND RJ REYNOLDS TOBACCO INTERNATIONAL A UNIT OF RJR NABISCO AND SEAN FITZPATRICK AGE 51 EXECUTIVE VICE PRESIDENT IN CHARGE OF THE DETROIT OPERATIONS WHO WILL OVERSEE INTERNATIONAL CAMPAIGNS FOR GENERAL MOTORS AND GOODYEAR MR MOREIRA REMAINS IN CHARGE OF THE NEW YORK CREATIVE DEPARTMENT A DUTY HE ASSUMED FROM MR BOWEN LAST FALL DUBBED WORLDWIDE COLLABORATIVES THE NEW ORGANIZATION EMPHASIZES WHAT MCCANN SEES AS ITS STRENGTH IT'S HUGE GLOBAL PRESENCE EACH OF THE EXECUTIVES WILL ASSEMBLE STANDING CREATIVE TEAMS FOR HIS WORLDWIDE CLIENTS FROM AMONG MCCANN'S INTERNATIONAL OFFICES KGF MOVE KRAFT GENERAL FOODS A UNIT OF PHILIP MORRIS COS PULLED THE ESTIMATED 15 MILLION CRYSTAL LIGHT POWDERED DRINKMIX ACCOUNT FROM D'ARCY MASIUS BENTON & BOWLES NEW YORK AND ASSIGNED IT TO WPP GROUP'S OGILVY & MATHER NEW YORK THE MOVE IS THE LATEST BUMP IN A ROCKY YEAR FOR DMB&B AND KGF LAST OCTOBER KGF REMOVED DMB&B FROM THE ESTIMATED 15 MILLION LOUIS RICH MEAT ACCOUNT AND AWARDED IT TO FOOTE CONE & BELDING COMMUNICATIONS CHICAGO DMB&B CONTINUES TO HANDLE AN ESTIMATED 60 MILLION IN KGF BILLINGS CLAIROL MOVE BRISTOLMYERS SQUIBB MOVED THE ESTIMATED 7 MILLION CLAIROL NICE 'N EASY HAIR COLOR BRAND FROM OMNICOM GROUP'S DDB NEEDHAM NEW YORK AND ASSIGNED IT TO WPP GROUP'S J WALTER THOMPSON NEW YORK THE MOVE CONSOLIDATES CLOSE TO 30 MILLION IN CLAIROL ADVERTISING WITH THOMPSON WHICH HAS PICKED UP BOTH THE ULTRESS AND LOVING CARE BRANDS IN THE PAST YEAR OR MORE 9303190092 930319 HEARD ON THE STREET HOW THREE STOCKS ALMOST WERE TV STARS BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL FOR MANY SMALL INVESTORS THE AD THAT RAN IN THIS WEEK'S BARRON'S SEEMED TOO GOOD TO BE TRUE YOU ARE INVITED TO THE CEO'S ELECTRONIC ROAD SHOW THE AD PROCLAIMED ROAD SHOWS ARE USUALLY INTENDED TO GIVE INSTITUTIONS THE CHANCE TO PREVIEW CORPORATE INFORMATION BEFORE A STOCK OFFERING BUT THIS ROAD SHOW WAS TO BE HELD TOMORROW AFTERNOON ON CNBC THE BUSINESS TELEVISION CHANNEL OWNED BY GENERAL ELECTRIC'S NBC UNIT IN THE HALFHOUR SHOW THE AD SAID INVESTORS WOULD MEET THE MOVERS AND THE SHAKERS OF THE NASDAQTRADED COMPANIES FIRST PACIFIC NETWORKS SCICLONE PHARMACEUTICALS AND EMBREX FACE TO FACE TAKING ITS CUE FROM PURVEYORS OF JUICERS AND COOKWARE WALL STREET SEEMED TO HAVE FOUND A COMPELLING WAY TO HAWK SMALL STOCKS WHAT COULD BE MORE PERSUASIVE THAN AN INFOMERCIAL A PITCH MADE TO LOOK LIKE A NEWSY INTERVIEW PROGRAM BUT WHAT HAPPENED NEXT OFFERS A LESSON TO SMALL INVESTORS WHO FLICK ON THE TV AND HEAR WHAT SOUNDS LIKE THOUGHTFUL INVESTMENT ADVICE LOTS OF TIMES WHAT THEY'RE REALLY HEARING IS A SALESMAN WHOSE TIPS ARE ANYTHING BUT IMPARTIAL YESTERDAY IN ANSWER TO A QUERY FROM THIS NEWSPAPER WHOSE PUBLISHER DOW JONES ALSO PUBLISHES BARRON'S CNBC SAID IT INFORMED THE SHOW'S PRODUCER HASTINGS GROUP THAT IT WAS CANCELING THE SHOW AT CNBC A SPOKESMAN SAYS OFFICIALS WERE CONCERNED THAT THE INFOMERCIAL BORDERED ON TOUTING AFTER THEY VIEWED IT TUESDAY MOREOVER HE SAYS CNBC REPORTERS HEARD FROM PEOPLE ON THE STREET THAT THE PROGRAM WAS BEING USED BY BROKERS TO PUFF THESE STOCKS IN A POSITIVE WAY TO INVESTORS WHICH IS CONTRADICTORY TO EVERYTHING WE STAND FOR AS A NEWS ORGANIZATION CONSIDER HOW THE SHOW CALLED EMERGING PUBLIC COMPANIES WAS ASSEMBLED JAY SILVER A HASTINGS EMPLOYEE AND THE SHOW'S SENIOR PRODUCER SAYS HE PERSONALLY CULLED THROUGH HUNDREDS OF ANNUAL REPORTS TO CHOOSE THREE COMPANIES TO BE FEATURED ON TOMORROW'S SHOW MR SILVER SAYS HE'S A FORMER STOCKBROKER AT SHEARSON LEHMAN BROTHERS AND STUART JAMES SO HE KNOWS A GOOD STOCK WHEN HE SEES ONE BUT JUDGING BY A TAPE OF THE SHOW THERE ARE QUITE A FEW THINGS ABOUT THE THREE STOCKS THAT AN INVESTOR WOULDN'T KNOW AFTER WATCHING IT ALL THREE COMPANIES ARE UNPROFITABLE ALL WERE TAKEN PUBLIC IN STOCK UNDERWRITINGS LED BY THE NEW YORK INVESTMENT BANK JOSEPHTHAL LYON & ROSS INC AND THE SHOW'S ANCHORWOMAN SHARON BIERMANN WHO IS SIMPLY IDENTIFIED AS A NEW YORK INVESTMENT BANKER JUST HAPPENS TO WORK IN THE CORPORATEFINANCE DEPARTMENT OF GUESS WHICH FIRM MS BIERMANN A JOSEPHTHAL VICE PRESIDENT SAYS THE WHOLE IDEA OF THE SHOW WAS MINE SHE SAYS SHE WORKED WITH HASTINGS GIVING THEM IDEAS ABOUT COMPANIES THAT SHOULD BE ON THE SHOW MS BIERMANN SAYS NEITHER SHE NOR JOSEPHTHAL HAVE BEEN COMPENSATED IN ANY WAY FOR WHAT TURNED OUT TO BE A TREMENDOUS AMOUNT OF WORK YET JOSEPHTHAL CLEARLY STOOD TO GAIN FROM THE SHOW IN WHICH EACH OF THE THREE STOCK SYMBOLS WAS TO HAVE BEEN PROMINENTLY DISPLAYED FOR THE DURATION OF THAT COMPANY'S SEGMENT THE FIRM COULD HAVE USED THE SHOW TO GAIN NEW UNDERWRITING BUSINESS IT MIGHT HAVE EARNED SEVERAL MILLION DOLLARS IN COMMISSIONS IF HOLDERS EXERCISED SCICLONE'S AND EMBREX'S CALLABLE WARRANTS AND NEW INVESTORS SNAPPED UP ALL THREE STOCKS JOSEPHTHAL HAS BUY RECOMMENDATIONS ON FIRST PACIFIC AND SCICLONE AND A BUY/HOLD ON EMBREX INVESTORS WOULDN'T HAVE LEARNED IT FROM WATCHING THE SHOW BUT EACH COMPANY FEATURED IN THE SCHEDULED INFOMERCIAL ALSO HAD PAID FOR THAT PRIVILEGE WE WERE HOPING JOSEPHTHAL MIGHT KICK IN SOME BUCKS BUT THEY DIDN'T SAYS KRISTI FURRER A SPOKESWOMAN FOR FIRST PACIFIC IN SUNNYVALE CALIF WHICH HAS DEVELOPED A TECHNOLOGY ALLOWING TELEPHONE VIDEO AND COMPUTER SIGNALS TO TRAVEL ON A SINGLE WIRE SHE SAYS HER COMPANY PAID HASTINGS ABOUT 35000 FOR ITS SPOT ADDING THAT SHE RECEIVED MANY CALLS ABOUT THE SHOW IN RECENT DAYS FROM THE INVESTMENT COMMUNITY IT COULD MAKE THE STOCK PRICE RISE SHE SAYS THE STOCK DIDN'T NEED THE SHOW YESTERDAY IT SURGED 5 3/8 TO 26 1/2 IN NATIONAL OVERTHECOUNTER TRADING ON NEWS THAT SOUTHERN CO HAD TENTATIVELY AGREED TO ACQUIRE A 995 STAKE IN FIRST PACIFIC AND TO TEST SOME OF ITS TECHNOLOGY THOMAS E MOORE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SCICLONE SAYS HIS COMPANY'S SEGMENT COST IT ABOUT 20000 I WAS UNDER THE IMPRESSION HASTINGS WAS PRODUCING IT FOR CNBC HE SAYS I DON'T BELIEVE IT WAS AN INFOMERCIAL PER SE HE SAYS SCICLONE HOPED THE SHOW WOULD BROADEN OUR SHAREHOLDER BASE BASED IN SAN MATEO CALIF SCICLONE IS DEVELOPING DRUGS FOR SALE ABROAD AND RECENTLY SAID THAT IT EXPECTS PRODUCT REVENUE IN 1994 IN RESEARCH TRIANGLE PARK NC EMBREX'S PRESIDENT AND CEO RANDALL MARCUSON DECLINED TO SAY HOW MUCH THE BIOENGINEERING CONCERN PAID FOR ITS SPOT WE SAW THIS AS A POSSIBILITY TO GET EXPOSURE ON A MUCH BROADER BASIS HE SAYS REFERRING TO CNBC'S ABILITY TO REACH AN AUDIENCE OF MORE THAN 40 MILLION BUT IN NEW YORK A CNBC OFFICIAL SAYS EXECUTIVES WERE ANGERED BY THE AD'S IMPLICATION THAT THE SHOW WAS CNBCSPONSORED AND BY A NEWS ITEM IN BARRON'S REFERRING TO THE PROGRAM AS A NEW CNBC TV SHOW THE NEWS ITEM SHOULD HAVE MADE CLEAR IT WAS AN INFOMERCIAL SAYS BARRON'S MANAGING EDITOR JAMES MEAGHER IF THE PROGRAM HAD AIRED ITS FEATURED COMPANIES COULD HAVE FACED REGULATORY PROBLEMS OFFICIALS OF THE SECURITIES AND EXCHANGE COMMISSION DECLINE TO COMMENT ON THE SPECIFIC PROGRAM BUT SENIOR OFFICIALS SAY THAT A PROGRAM TOUTING COMPANIES WITHOUT DISCLOSING DETAILS OF WHO PAID TO GET THE PROGRAM ON THE AIR OR ABOUT THE POTENTIAL EXERCISE OF WARRANTS COULD RAISE QUESTIONS ABOUT MARKET MANIPULATION SUCH PROGRAMS WALK A THIN LINE ACCORDING TO MARKET VETERANS IN THE WORDS OF HARVEY PITT A NEW YORK SECURITIES LAWYER THESE CAN'T BE PUFF PIECES DESIGNED ARTIFICIALLY TO INFLUENCE THE MARKETPLACE 9303190091 930319 NASD DISCLOSES ACTIONS AGAINST FIRMS OTHERS TT SECURITIES INC IS FINED 40000 AND EXPELLED PRINCIPAL GETS BIG FINE BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ANNOUNCED DISCIPLINARY PROCEEDINGS AGAINST A NUMBER OF FIRMS AND INDIVIDUALS FOR VIOLATION OF INDUSTRY RULES AND SECURITIES LAWS TT SECURITIES INC DANVILLE CALIF WAS FINED 40000 AND EXPELLED PRINCIPAL JAMES PATRICK TOLLEY WAS FINED 190000 AND BARRED THE NASD SAID THE SANCTIONS REFLECTED FINDINGS THAT IN FINANCING OR REFINANCING PROPERTIES OWNED BY LIMITED PARTNERSHIPS PREVIOUSLY UNDERWRITTEN BY THE FIRM MR TOLLEY DIVERTED LOAN PROCEEDS TO OTHER PARTNERSHIPS WITHOUT DISCLOSURE TO THE LIMITED PARTNERS AMONG OTHER VIOLATIONS HALLIDAY CAPITAL INC SEATTLE AND PRINCIPAL SCOTT BUCHANAN HALLIDAY WERE FINED 5000 JOINTLY AND SEVERALLY WHICH MEANS EACH IS RESPONSIBLE FOR THE FULL AMOUNT THE FIRM WAS SUSPENDED FOR 30 DAYS AND MR HALLIDAY WAS SUSPENDED AS A GENERAL SECURITIES PRINCIPAL FOR 30 DAYS THE FIRM FAILED TO MAINTAIN MINIMUM REQUIRED NET CAPITAL MR HALLIDAY SAID THAT WHEREAS WE PAID THE FINE AND ACCEPTED THE JUDGMENT OF THE COMMITTEE WE STRONGLY DISAGREE WITH THE COMMITTEE'S FINDINGS OXFORD CAPITAL SECURITIES INC NEW YORK WAS SUSPENDED FOR ONE YEAR AS WERE PRINCIPALS JAMES ANTHONY SEHN EATON'S NECK NY AND SAMUEL OSEI ASIBEY FORSON BROOKLYN NY FOR DENYING THE NASD STAFF ACCESS TO BOOKS AND RECORDS THE NOW DEFUNCT FIRM AND 13 FORMER OFFICERS AND EMPLOYEES WERE INDICTED IN EARLY MARCH AND CHARGED WITH BILKING INVESTORS OF MORE THAN 10 MILLION FIRSTMONEY SECURITIES CORP MEMPHIS TENN AND BROKER JAMES H BECKEMEYER MEMPHIS WERE EACH FINED 20000 AND MR BECKEMEYER WAS SUSPENDED FOR ONE WEEK THE NASD SAID THE FIRM FAILED TO DISCLOSE TO DIRECTORS AND SENIOR OFFICERS THAT US GOVERNMENT AGENCY SECURITIES TRANSACTIONS WERE CONDUCTED AT PRICES NOT REASONABLY RELATED TO THE CURRENT MARKET PRICE PIPER JAFFRAY INC MINNEAPOLIS AND PRINCIPAL DANIEL FRANCIS BROTHERTON BELLEVUE WASH DIDN'T ADMIT OR DENY ALLEGATIONS THAT THEY FAILED TO MAINTAIN AND ENFORCE ADEQUATE SUPERVISORY PROCEDURES THE FIRM WAS FINED 35000 AND MR BROTHERTON WAS FINED 25000 UNLESS OTHERWISE NOTED THE FIRMS AND INDIVIDUALS COULDN'T BE REACHED OR HAD NO COMMENT INDIVIDUALS BARRED OR SUSPENDED INCLUDED THEODORE ALLOCCA HUNTINGTON NY BARRED HE HAS APPEALED THE DECISION TO THE SECURITIES AND EXCHANGE COMMISSION BILLY JOE ALTSTATT II SAN MATEO CALIF FINED 20000 AND BARRED EDWARD DALLIN BAGLEY SALT LAKE CITY FINED 50000 AND BARRED CHARLES MICHAEL BANACOS BRECKENRIDGE COLO FINED 94175 AND BARRED KEITH A BERGNER LAKEWOOD COLO FINED 5000 AND BARRED RICHARD L BLACKSTOCK AURORA COLO FINED 5000 AND BARRED AND DAVID A BOHNENKAMPER PALM HARBOR FLA FINED 25000 AND SUSPENDED FOR ONE YEAR WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO RICHARD J CALTA PHOENIX ARIZ FINED 19275 AND SUSPENDED FOR 10 BUSINESS DAYS JAMES D CLEMMONS II PEORIA ILL FINED 35000 AND BARRED WILLIAM F COBLE SILVER CITY NM FINED 56000 AND BARRED ERIC MICHAEL DIEHM TAMPA FLA FINED 5000 AND BARRED SUBJECT TO PAYMENT OF AN ARBITRATION AWARD THE DECISION HAS BEEN APPEALED TO THE SECURITIES AND EXCHANGE COMMISSION PRAVEEN DIWAN ENCLAVE NEW DELHI INDIA FINED 50000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THOMAS LEE DUSSAULT ISELIN NJ WAS SUSPENDED FOR THREE DAYS ROBERT L EATON KINGSPORT TENN FINED 10000 AND SUSPENDED FOR TWO WEEKS WITHOUT ADMITTING OR DENYING ALLEGATIONS THOMAS J FALZANI FINED 2500 AND SUSPENDED IN ANY PRINCIPAL CAPACITY FOR THREE MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS MURRAY H FRANKEL NEW CITY NY FINED 1000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JUANITO A GO LONG BEACH CALIF FINED 1000 AND BARRED AND JAMES M GRAYBOSCH JACKSON TENN FINED 10000 AND BARRED ALSO JAMES RICHARD HACKETT JR WADSWORTH OHIO WAS FINED 20000 BARRED AND REQUIRED TO PAY 10000 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS RICHARD C HARPOLE ROCHESTER NY WAS FINED 65000 BARRED AND REQUIRED TO PAY 15000 IN RESTITUTION TIMOTHY JOSEPH HARRINGTON LOS GATOS CALIF WAS FINED 309772 AND BARRED FOR MISAPPROPRIATING CUSTOMER FUNDS HASSAN HASHEMIAN TORRANCE CALIF WAS FINED 104538 AND BARRED MICHAEL A IWE JR CHICAGO WAS FINED 25000 AND BARRED RANDY BLAIME JOHNSON OGDEN UTAH FINED 20000 AND BARRED JAY B KITCHENS NEW PHILADELPHIA OHIO FINED 25000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ALEXANDER ANDREW KUSULOS MILL CREEK WASH FINED 30000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS DAVID J LEYSHON HOPEWELL VA FINED 2500 AND SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS JULES B LIPOW RIVERSIDE CONN FINED 100000 AND BARRED I SUBSTANTIALLY DENY THE ALLEGATIONS MR LIPOW SAID I WAS AN UNWITTING DUPE AND I LOST CONSIDERABLE AMOUNTS OF MONEY I SETTLED ONLY TO PROTECT MYSELF AND MY FAMILY MR LIPOW ADDED THAT HE DID NOT HAVE TO PAY THE FINE UNLESS HE SOUGHT TO RETURN TO THE BUSINESS IRVING LEVINE WOODMERE NY WAS FINED 15000 AND SUSPENDED FOR 15 BUSINESS DAYS AND HOWARD R PERLES STATEN ISLAND NY FINED 5000 AND SUSPENDED FOR FIVE BUSINESS DAYS THEY DIDN'T ADMIT OR DENY ALLEGATIONS GARY B MARSHELL FAYETTEVILLE ARK FINED 35000 AND BARRED JONI LYNN MERWIN AURORA COLO FINED 15000 AND SUSPENDED FOR 30 DAYS KENNETH N MORTON CHARLOTTE VT FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS MANOJ D MOTWANI BAYSIDE NY FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS VALERIE W NALLEY LOUISVILLE KY FINED 1000 AND SUSPENDED FOR ONE WEEK WITHOUT ADMITTING OR DENYING ALLEGATIONS EPHRAM TOUMA NEHME THOUSAND OAKS CALIF FINED 30676 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ANGELO PASTORE SAYVILLE NY FINED 22000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS AND FRANK LYON POLK III NEW YORK CITY FINED 27500 AND SUSPENDED FOR 30 DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS J KENNETH POWELL WEST MIFFLIN PENN WAS FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS MANUEL S SANDOVAL PUEBLO COLO WAS FINED 38616 AND BARRED MICHAEL SCHATTEN III FOREST HILLS NY WAS FINED 62000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ANDREW SCUDIERO WHITESTONE NY WAS FINED 10000 AND SUSPENDED FOR SEVEN MONTHS AND 15 DAYS AND SUSPENDED IN ANY SUPERVISORY CAPACITY FOR THREE YEARS HE ALSO WAS PROHIBITED FOR THREE YEARS FROM MAINTAINING ANY PROPRIETARY INTEREST IN ANY NASD MEMBER OTHER THAN A NONCONTROLLING INTEREST IN A MEMBER WHOSE SHARES ARE PUBLICLY TRADED AND SUBJECT TO SEC REPORTING REQUIREMENTS AND HE WAS ORDERED TO PAY 38300 IN RESTITUTION ROBERT HOLLIS GRIFFITH BAY SHORE NY WAS FINED 7500 AND SUSPENDED FOR TWO YEARS THEY DIDN'T ADMIT OR DENY ALLEGATIONS THAT THEY FAILED TO REGISTER WITH THE NASD AND MADE UNAUTHORIZED TRADES AMONG OTHER VIOLATIONS MAYNARD MATT SMITH BAYSIDE NY WAS FINED 50000 BARRED AND REQUIRED TO PAY 56100 IN RESTITUTION FLORENCE TERRIE SOMMER NEW YORK CITY WAS FINED 50000 AND SUSPENDED FOR 24 MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS ANN MARIE SONDERMAN LEXINGTON KY WAS FINED 85000 AND BARRED FRANK O SAMPINATO LAUDERHILL FLA WAS FINED 50000 AND BARRED ALBERT F DEMANGE CORAL SPRINGS FLA WAS FINED 25000 SUSPENDED FOR SIX MONTHS AND BARRED IN ANY PRINCIPAL CAPACITY ERICK PETER SPRONCK CLINTON NJ WAS SUSPENDED FOR TWO YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL SEBASTION TOSCANO FENTON MO WAS FINED 21000 AND BARRED THOMAS E WARREN III TULSA OKLA WAS FINED 5000 AND SUSPENDED TWO WEEKS THE CASE HAS BEEN APPEALED TO THE SEC MARTIN WEWERKA EL CAJON CALIF WAS FINED 5000 AND BARRED MOSES WILSON JR DETROIT WAS FINED 75000 BARRED AND ORDERED TO PAY 32991 IN RESTITUTION TO INSURANCE CUSTOMERS WITHOUT ADMITTING OR DENYING ALLEGATIONS AULDIS E WRIGHT RICHMOND VA WAS FINED 90000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JOHN F YAKIMCZYK PARKER COLO WAS FINED 15000 AND SUSPENDED FOR THREE BUSINESS DAYS AGOSTINO JOSEPH ZOLEZZI SAN DIEGO CALIF WAS FINED 7500 JOINTLY AND SEVERALLY WITH A MEMBER FIRM FINED AN ADDITIONAL 500 JOINTLY AND SEVERALLY WITH OTHER RESPONDENTS AND SUSPENDED FOR THREE DAYS THE ACTION HAS BEEN APPEALED TO THE SEC JOSEPH SIMON ARSENAULT MANHASSET NY WAS FINED 12000 WITHOUT ADMITTING OR DENYING ALLEGATIONS EMERY E BOUDREAU OAKTON VA WAS FINED 15000 WITHOUT ADMITTING OR DENYING ALLEGATIONS THE CASE INVOLVED FAILING TO NOTIFY HIS FIRM IN WRITING OF PRIVATE SECURITIES TRANSACTIONS WE GAVE ORAL NOTIFICATION THAT'S NOT ENOUGH SO IT WAS A TECHNICAL VIOLATION HE SAID PAUL CHARLES HEDRICK PALM BEACH GARDENS FLA WAS FINED 10250 WITHOUT ADMITTING OR DENYING ALLEGATIONS RICHARD KAYE LONG BEACH CALIF WAS FINED 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS GREGORY SMALL TIERRA VERDE FLA WAS FINED 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS AND STANLEY ZICKLIN WOODLAND HILLS CALIF WAS FINED 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS 9303190090 930319 KEMPER TO SELL TWO BUSINESSES TO EXPARENT STOCK SURGES 17 ON DEAL FOR RISKMANAGEMENT AND REINSURANCE LINES BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL THE INSURANCE AND FINANCIALSERVICES CONCERN SAID THE 174 MILLION KEMPER SHARES IT WILL RECEIVE IN THE EXCHANGE WILL BE RETIRED AS TREASURY STOCK IN HEAVY NEW YORK STOCK EXCHANGE TRADING YESTERDAY KEMPER SHARES CLIMBED 5375 TO CLOSE AT 36625 THAT PRICE VALUES THE SHARES LUMBERMENS IS HANDING OVER AT 6373 MILLION THE MARKET SEEMS TO BELIEVE THAT KEMPER MANAGEMENT IS INTENT ON STREAMLINING THE ORGANIZATION AND IMPROVING PROFITABILITY SAID BEARS STEARNS & CO ANALYST ERIC N BERG KEMPER HAS NOW ANNOUNCED PLANS TO SELL TWO BUSINESSES THAT HAVE ADDED SIGNIFICANTLY TO THE VOLATILITY OF ITS EARNINGS KEMPER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER DAVID B MATHIS CALLED THE TRANSACTION ANOTHER STEP IN THE COMPANY'S EFFORT TO FOCUS ON ITS CORE LINES BOTH KEMPER AND LUMBERMENS HE SAID STAND TO BENEFIT STRATEGICALLY AND FINANCIALLY FROM THE EXCHANGE WHICH IS EXPECTED TO CLOSE IN THE THIRD QUARTER MOODY'S INVESTORS SERVICE INC SWIFTLY ANNOUNCED HOWEVER THAT IT WOULD REVIEW KEMPER'S DEBT AND THE FINANCIALSTRENGTH RATINGS OF KEMPER'S LIFEINSURANCE UNITS FOR POSSIBLE DOWNGRADE THE EXAMINATION OF THE KEMPER CORP'S RATINGS WILL FOCUS ON THE REDUCTION IN SHAREHOLDERS' EQUITY THAT WILL RESULT FROM THE TRANSACTION MOODY'S SAID AND THE EXTENT TO WHICH THAT WOULD BE OFFSET BY A PLAN KEMPER ANNOUNCED YESTERDAY TO PRIVATELY PLACE 200 MILLION OF EQUITY CAPITAL KEMPER WAS ORIGINALLY FORMED IN 1968 AS A DOWNSTREAM HOLDING COMPANY FOR LUMBERMENS BOTH CONCERNS ARE BASED IN THE CHICAGO SUBURB OF LONG GROVE ILL OVER TIME LUMBERMENS' STAKE IN KEMPER HAS DECLINED TO THE CURRENT 38 HOLDING THE MOST RECENT DIVESTITURE CAME IN 1989 WHEN KEMPER SWAPPED ITS AUTOINSURANCE UNIT FOR A 96MILLIONSHARE BLOCK OF KEMPER SHARES HELD BY LUMBERMENS THAT MOVE REDUCED THE FORMER PARENT'S STAKE TO 39 FROM 49 AND THE TWO COMPANIESWHICH HAD UNTIL THEN SHARED A COMMON MANAGEMENTSOON AFTER BECAME SEPARATE ENTITIES AFTER THE PLANNED SWAP LUMBERMENS WILL HOLD 1250000 KEMPER CORP SHARES REPRESENTING A STAKE OF ABOUT 4 THE NUMBER OF KEMPER SHARES OUTSTANDING WILL DROP TO 319 MILLION KEMPER IS HANDING OVER TO LUMBERMENS ITS KEMPER REINSURANCE CO UNIT WHICH LAST YEAR RECORDED 5588 MILLION IN NET PREMIUMS WRITTEN AND HAD REVENUE OF 6031 MILLION THREE MONTHS AGO STANDARD & POOR'S CORP LOWERED ITS RATING ON THE UNIT'S CLAIMSPAYING ABILITY TO SINGLEAPLUS FROM DOUBLEA CITING THE REINSURER'S NEGATIVE OPERATING CASH FLOW SINCE 1988 HEAVY DIVIDEND PAYMENTS AND POOR OPERATING PERFORMANCE IN 1992 THE REINSURANCE UNIT HAD A COMBINED RATIO OF 1179 MEANING ITS UNDERWRITING LOSSES AND EXPENSES OUTWEIGHED PREMIUMS TAKEN IN BY NEARLY 18 CENTS ON THE DOLLAR BUT MOODY'S YESTERDAY PUT KEMPER REINSURANCE'S A3RATED DEBT UNDER REVIEW FOR POSSIBLE UPGRADE AS A RESULT OF THE EXPECTED CHANGE IN OWNERSHIP IN A SUBSTANTIALLY SMALLER PART OF THE TRANSACTION KEMPER IS ALSO TRADING ITS 50 STAKE IN A RISKMANAGEMENT COMPANY THAT IT OWNS JOINTLY WITH LUMBERMENS THAT UNIT CONTRIBUTED 91 MILLION IN AFTERTAX INCOME TO KEMPER LAST YEAR KEMPER LATE LAST YEAR PUT ITS PROPERTY AND CASUALTY BUSINESSES ON THE BLOCK ALTHOUGH IT HASN'T YET FOUND A BUYER THE COMPANY SAID YESTERDAY THAT THOSE OPERATIONS HAVE GARNERED A SIGNIFICANT AMOUNT OF INTEREST AND THAT KEMPER HOPES TO REACH SOME CONCLUSION BY THE END OF THE SECOND QUARTER SHOULD THOSE HOPEDFOR SALES CLOSE KEMPER WILL RETAIN LIFE INSURANCE OPERATIONS THAT ARE CONSIDERED STRONG BUT SADDLED WITH TROUBLED REALESTATE HOLDINGS IT ALSO WOULD RETAIN ITS BROKERAGE OPERATIONS WHICH INCREASINGLY ARE SUBJECT TO SPECULATION THAT THEY WILL BE SHED OR PARED BACK BY KEMPER AND ITS HIGHLY PROFITABLE MUTUAL FUNDS BUSINESS 9303190089 930319 COURTAULDS JOINS NIPPON PAINT LONDON COURTAULDS PLC THE BRITISH CHEMICAL MATERIALS COMPANY HAS FORMED A JOINT VENTURE IN COAL COATINGS WITH NIPPON PAINT CO OF JAPAN THE VENTURE COURTAULDS NIPPON PAINT LTD IS OWNED EQUALLY BY THE TWO COMPANIES AND WILL BEGIN TRADING APRIL 1 COURTAULDS SAID THE VENTURE WILL ACQUIRE COURTAULDS'S EUROPEAN COIL COATINGS BUSINESSES OVER THE NEXT TWO TO THREE YEARS THE BUSINESSES HAVE ANNUAL REVENUE OF ABOUT 15 MILLION 217 MILLION THE NEW VENTURE WILL NOT INITIALLY INVOLVE ANY TRANSFER OF MANUFACTURING ASSETS 9303190088 930319 POTOMAC WATCH CLINTON SLIPS THE WORLD A TRADE MICKEY BY PAUL A GIGOT PRESIDENT CLINTON LIKES TO THINK OF HIMSELF AS FDR FOR THE MTV GENERATION TO THE POINT OF LAYING A RED ROSE ON HIS HYDE PARK GRAVE SO WHERE IS CORDELL HULL NOW THAT WE REALLY NEED HIM HULL WHO WAS FDR'S SECRETARY OF STATE IS THE MAN WHO REBUILT THE WORLD TRADING SYSTEM IN THE 1930S FROM THE RUINS OF HERBERT HOOVER HE NEGOTIATED 27 TRADE TREATIES THAT WERE THE BASIS AFTER WORLD WAR II FOR THE GENERAL AGREEMENT ON TARIFFS AND TRADE GATT AND THE GREATEST ECONOMIC BOOM IN HISTORY MR CLINTON'S HULL IS MICKEY KANTOR THE NEW US TRADE REP IS A CERTIFIED FRIENDOFBILL BUT SO FAR HE QUALIFIES ONLY AS A STATESMAN MANQUE LAST WEEK MR KANTOR TOLD CONGRESS THAT NEW SIDE DEALS ON THE NORTH AMERICAN FREE TRADE AGREEMENT WOULDN'T INCLUDE ENFORCEMENT POWERS ANTINAFTA FORCES HOWLED THIS WEEK MR KANTOR SAID THOSE DEALS MUST COME WITH TEETH SO WHICH IS IT YOU CAN'T ASK ME TO RECONCILE THE TWO SAYS MR KANTOR'S SPOKESWOMAN WHO DESERVES A RAISE OVER THE WEEKEND HE GOT SOME DENTURES QUIPS ONE CAPITOL HILL DEMOCRAT SO GOES THE CLINTON TRADE POLICY IF THAT'S THE WORD FOR IT WHILE OUR PRESIDENT GIVES FINE SPEECHES ABOUT OPEN AND COMPETITIVE COMMERCE HIS TEAM'S BEHAVIOR IS GIVING EVERYONE ELSE HEADACHES IF THERE EVER WAS A TIME THAT CRIED OUT FOR US LEADERSHIP IT IS NOW WHEN WE'RE THE ONLY MAJOR COUNTRY THAT'S GROWING AND INSTEAD WE'RE PLAYING THE ROLE OF THE AGGRIEVED PARTY CLAIMING WE'RE THE TRADE VICTIMS SAYS TED VAN DYK A DEMOCRAT FROM THE PARTY'S OLD FREETRADE SCHOOL CONSIDER MR CLINTON HAS BLOWN A CHANCE TO WRAP UP THE TRADEOPENING GATT TALKS IN GEORGE BUSH'S LAST DAYS EUROPE FINALLY SQUEEZED FARM CONCESSIONS FROM THE ORNERY FRENCH ADVICE STREAMED INTO THE CLINTON TRANSITION TO TAKE THE DEAL DECLARE VICTORY AND REFER CATCALLS TO MR BUSH BUT THE WHITE HOUSE BOWED TO PRIVATE COMPLAINERS AND VOWED TO REINVENT THE DEAL IT STIFFED LEON BRITTAN EUROPE'S CHIEF NEGOTIATOR ON HIS RECENT VISIT HERE MEANWHILE THE FASTTRACK PROCESS FOR GETTING THE TREATY THROUGH CONGRESS HAS EXPIRED IT MAY NOT BE RENEWED UNTIL NEXT FALL IF EVER MERCANTILISTS WHO WANT STATE POWER TO SERVE COMMERCIAL ENDS ARE ECSTATIC THE WHITE HOUSE SAYS IT WANTS NAFTA BUT HAS NO STRATEGY FOR GETTING IT THROUGH CONGRESS ITS MARKETING WHIZZES CAN SELL A TAX INCREASE TO THE MIDDLE CLASS BUT APPARENTLY NOT A TREATY THAT WOULD CREATE JOBS AND KEEP MEXICO GROWING AND STABLE IF A VOTE WERE TAKEN TODAY DEMOCRATS WOULD REPUDIATE THEIR OWN PRESIDENT MR KANTOR MAY CASHIER A STUDY OF THE PUNITIVE EFFECTS OF US LAWS AGAINST DUMPING FOREIGN GOODS THE STUDY REQUESTED IN HER LAST DAYS BY BUSH TRADE REP CARLA HILLS IS TIMELY BECAUSE THIS TOOL OF US PROTECTIONISTS IS NOW BEING USED BY OTHERS TO BLOCK US GOODS BUT THE STUDY IS BEING RESISTED BY THE TRADE BUREAUCRACY THIS DRIFT REFLECTS THE EMERGING CLINTON METHOD OF VIEWING ALL POLICY THROUGH THE PRISM OF TRANSACTIONAL POLITICS IN THIS VIEW THE US HAS NO SPECIAL RESPONSIBILITY TO LEAD AN OPEN GLOBAL TRADING SYSTEM TRADE IS LESS ABOUT A PRINCIPLE THAN ABOUT MAKING A POLITICAL DEAL THIS IS A PROCESS NOT A PHILOSOPHY MR KANTOR TOLD THE NATIONAL JOURNAL REVEALINGLY A LAWYER/LOBBYIST MR KANTOR PERSONIFIES THIS APPROACH HE MADE SURE HIS FIRST OFFICIAL VISIT WAS TO THE AFLCIO ON CAPITOL HILL HIS MENTOR IS DICK GEPHARDT WHO SO FEARS JAPANESE MERCANTILISM THAT HE WANTS US TO IMITATE IT MR KANTOR WELCOMED MEXICO'S TRADE MINISTER JAIME SERRA PUCHE TO THEIR FIRST MEETING BY SHOWING A LETTER FROM MR GEPHARDT AND SAYING THEY HAD NO BUSINESS TO DISCUSS UNTIL HIS CONCERN WAS MET IT WAS MR KANTOR'S IDEA OF PROMOTING NAFTA IS NOW TO ASSERT THAT THE US WILL WALK AWAY FROM THE TABLE IF IT ISN'T CHANGED TO THE LIKING OF DEMOCRATIC CRITICS PERHAPS THIS SHOWS NEGOTIATING GENIUS THAT OTHERS ARE TOO DULL TO SEE MORE LIKELY IT'S A TRANSPARENT ATTEMPT TO APPEASE NAFTA CRITICS RALPH NADER WHO ARE UNAPPEASABLE IT IS ALSO A REMARKABLE ATTEMPT TO IMPOSE US DOMESTIC LAW ONTO A SOVEREIGN NATION TRADE POLICY WAS ONCE ABOUT SUCH QUAINT MATTERS AS TARIFFS NOW IT IS SUPPOSED TO INCLUDE SOCIAL WELFARE AND AIR QUALITY LIBERALS ONCE HAD A WORD FOR THIS MINDSET IMPERIALISM IT'S TRUE THAT EVERY ADMINISTRATION HAS TRADE WARRIORS BUT THIS ONE ALSO LACKS THE USUAL FREETRADE BACKSTOPS SECRETARY OF STATE WARREN CHRISTOPHER SEEMS TO THINK TRADE IS A DOMESTIC ISSUE LAURA TYSON THE CHIEF WHITE HOUSE ECONOMIST PREACHES THE VIRTUES OF TRADE RETALIATION SHE MISUNDERSTANDS THAT THE BUSH THREAT OF RETALIATION AGAINST EUROPE IN NOVEMBER WAS A LASER SHOT TO PROD FRANCE TO MAKE PROGRESS ON GATT TREASURY MAY BE THE ONLY OPENMARKET VOICE ON THE CLINTON TEAM MR CLINTON'S INSTINCTS AREN'T MERCANTILIST BUT THE DANGER OF HIS MUDDLED TRADE POLICY IS THAT IT WILL SLOUCH TOWARD MERCANTILISM BY DEGREES THAT GATT WILL DIE OF INATTENTION THAT NAFTA WILL BE OVERRUN BY DEMAGOGUES THAT THE TARGETS OF MS TYSON'S STRATEGIC TRADE PUNCHES WILL PUNCH RIGHT BACK LET'S HOLD THE FDR ENCOMIA UNTIL MR CLINTON FINDS A CORDELL HULL 9303190087 930319 BUY OUCH OR SELL THE COMMODITY PITS CAN BE DANGEROUS FLOOR TRADERS ENDURE STRESS BROKEN BONES AND WORSE IN THEIR QUEST FOR A BUCK BY JEFFREY TAYLOR AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL FOR MONTHS CRUDEOIL TRADER ALLEN MARX SHRUGGED OFF THE SHARP PAIN IN HIS ABDOMEN IN THE MACHO CULTURE OF COMMODITIES PITS NO ONE MISSES A DAY OF TRADING BECAUSE OF STOMACH CRAMPS SO MR MARX GUZZLED MYLANTA ANTACID AND WAITED FOR THE PAIN TO GO AWAY INSTEAD HE SAYS MY BELLY BUTTON WAS BEGINNING TO TURN FROM AN INNY' TO AN OUTY' A BELATED TRIP TO THE DOCTOR FOUND A TRIPLE HERNIA RUPTURES OF THE ABDOMINAL WALL THAT REQUIRED IMMEDIATE SURGERY THE INJURY BROUGHT ON BY MR MARX'S CONSTANT BELLOWING OF BIDS AND OFFERS IS COMMON IN THE LATTERDAY ROMAN CIRCUS KNOWN AS THE OPENOUTCRY COMMODITIES MARKET IN NEW YORK AND CHICAGO MEN AND WOMEN STAND SHOULDER TO SHOULDER ON THE DESCENDING TIERS OF TRADING PITS ENDURING BLOOD SPIT AND BLUE LANGUAGE FOR A SHOT AT BIG MONEY FOR VARIOUS REASONS A COMMODITY TRADER'S CAREER LASTS AN AVERAGE OF 19 MONTHS LESS TIME THAN MOST PLAYERS SPEND IN THE NATIONAL FOOTBALL LEAGUE THE DIFFERENCE IS THAT EVERY DAY IS GAME DAY IN THE MARKETS TRADERS DON'T WEAR HELMETS AND SHOULDER PADS THEY WEAR EAR PLUGS AND CHEW ROLAIDS QUAFF PEPTOBISMOL AND USE CHLORASEPTIC THROAT SPRAY IT'S VERY DIFFICULT FOR US TO GET DISABILITY INSURANCE RASPS JOHN PATTEN ANOTHER CRUDEOIL FUTURES TRADER WHOSE 14 YEARS OF SCREAMING IN THE PIT HAVE PERMANENTLY DAMAGED HIS VOCAL CHORDS WE'RE RANKED JUST BELOW SKY DIVERS MINERS AND DEEPSEA DIVING INSTRUCTORS TRUE SAYS DONALD E BOGGS CHAIRMAN OF THE DISABILITY INCOME INSURANCE COMMITTEE OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA VERY FEW COMPANIES STILL ACCEPT THEM HE SAYS THOSE THAT DO PROTECT THEMSELVES WITH HIGH RATES OF RESTRICTIONS IT'S ONE OF THE HIGHESTRISK OCCUPATIONS WE INSURE BUT EVEN INSURANCE DOESN'T ENSURE HELP IN A TIME OF NEED WITH HUGE SUMS OF MONEY ON THE LINE TRADERS HAVE LITTLE TIME TO ATTEND TO FALLEN COLLEAGUES ONE MORNING IN 1978 FOR EXAMPLE JUST BEFORE THE OPENING BELL SOUNDED A CORN FUTURES BROKER NAMED STAN JONES BEGAN CLUTCHING FRANTICALLY AT HIS COLLAR HIS EYES ROLLED BACK IN HIS HEAD HIS FACE FLUSHED AND WITH A JERK HE PITCHED BACKWARD OUT OF THE TRADING PIT JUST THEN THE BELL RANG ANYONE WHO STOPPED TO HELP MIGHT HAVE LOST THOUSANDS OF DOLLARS SO THE CORN TRADERS DRESSED IN BRIGHTLY COLORED JACKETS BEGAN TO BUY AND SELL AS USUAL HE WAS LYING THERE TURNING BLUE SAYS TRADER LEO BRIESKE WHO WAS IN THE CORN PIT THAT DAY BUT THE MARKET WAS OPENING AND THEY COULDN'T STOP IT THEY DID WHAT HAD TO BE DONE THEY TRADED MR JONES WHO COULDN'T BE REACHED FOR COMMENT SURVIVED THE SEIZURE BUT QUIT THE TRADING FLOOR THE CBOT RESPONDED TO THE EPISODE BY HIRING MOONLIGHTING FIREDEPARTMENT PARAMEDICS TO RESPOND TO EMERGENCIES DESPITE SUCH HORROR STORIES YOUNG TRADERS CONTINUE TO FLOCK TO THE PITS LURED BY THE PROSPECT OF QUICK RICHES FOR THOSE WHO SURVIVE THE RIGORS OF THE FIRST YEAR THERE IS THE INEVITABLE SEARCH FOR MEDICAL SPECIALISTS VOICE COACHES PHYSICAL THERAPISTS EARNOSEANDTHROAT DOCTORS PSYCHOLOGISTS JIM OLIFF A SWISSFRANC FUTURES BROKER AT THE CHICAGO MERCANTILE EXCHANGE HAS UNDERGONE LASER SURGERY THREE TIMES TO REMOVE POLYPS AND SMALL TUMORS FROM HIS VOCAL CHORDS EVERY TIME THEY OPERATE MY VOICE GETS WEAKER SAYS MR OLIFF WHO OCCASIONALLY CAN'T SPEAK FOR A WEEK AT A TIME THE DOCTOR IS CONCERNED ABOUT LONGTERM DAMAGE HE SAYS I SHOULD CONSIDER FINDING ANOTHER VOCATION YET MR OLIFF HAS NO INTENTION OF LEAVING THE PITS WHICH PROVIDE FOR HIM AND HIS FAMILY OF FIVE DR SAMUEL H SELESNICK AN EARNOSEANDTHROAT SPECIALIST SAYS THE SCREAMING IN COMMODITY PITS DAMAGES VOCAL CHORDS BY INFLICTING SWOLLEN ABRASIONS CALLED NODULES AND FAR MORE SERIOUS POLYPS WHICH ARE PRECANCEROUS GROWTHS THE NODULES FREQUENTLY RESPOND TO VOICE THERAPY BUT POLYPS REQUIRE SURGERY HE SAYS THE SOURCE OF MANY TRADINGFLOOR MALADIES IS STRESS MOST OF IT CAUSED BY THE PROSPECT OF LOSING TENS OF THOUSANDS OF DOLLARS ON ANY GIVEN DAY IT REALLY GETS TO PEOPLE SAYS WILLIAM GREENSPAN A STOCKINDEX FUTURES TRADER AT THE CHICAGO MERC ONE DAY A GUY LOST IT ON THE FLOOR AND STARTED SCREAMING ABOUT JESUS AND THE MONEY CHANGERS THEY HAD TO TAKE HIM AWAY STRESS HAS BEEN RUNNING ESPECIALLY HIGH AT THE FIVE NEW YORK COMMODITY EXCHANGES WHICH SHARE A TRADING FLOOR AT THE BOMBDAMAGED WORLD TRADE CENTER NO TRADERS WERE SERIOUSLY INJURED IN THE EXPLOSION THOUGH SEVERAL TRADERS' CARS WERE DESTROYED BUT FOUR DAYS AFTERWARD A FALSE RUMOR OF A SECOND BOMB PROMPTED THEM TO HUSTLE OUT OF THE BUILDING THE ROUTINE STRESS OF TRADING ALSO TAKES ITS TOLL MANY OF THOSE TRADERS WITH INSURANCE COVERAGE CITE DRUG AND ALCOHOL ABUSE AND STRESSRELATED PSYCHOLOGICAL PROBLEMS WHEN FILING DISABILITY CLAIMS SAYS MR BOGGS THE INSURANCE EXECUTIVE THE WALL STREET HYPNOSIS CENTER IS SWAMPED WITH TRADERS WILLING TO PAY 100 A SESSION FOR STRESS REDUCTION SAM GIARRATANO A CHICAGO CHIROPRACTOR WHO SEES 50 TRADERS A WEEK SAYS HE OWES HIS SUBURBAN MANSION AND MERCEDES AUTOMOBILE IN LARGE PART TO TRADERS' CHRONIC ACHES AND PAINS IN WINTER MONTHS COLDS FLU AND BRONCHITIS ARE EPIDEMIC ON THE TRADING FLOOR DOCTORS SAY COMMODITY PITS WHERE HUNDREDS OF TRADERS WEDGE THEMSELVES INTO TIGHT ROWS ARE PERFECT BREEDING GROUNDS FOR VIRUSES AND BACTERIA IT'S THE SPIT THE SPUTUM IN THE AIR SAYS THE CHICAGO MERC'S MR GREENSPAN YOU GET SOME GUY STANDING NEXT TO YOU WITH GUM IN HIS MOUTH SCREAMING BUY SEVEN AT 70' AND HE SPITS ALL OVER YOU THE FIRST THING I DO WHEN I GET OFF THE FLOOR IS GO TO THE BATHROOM AND WASH MY HANDS MY FACE MY NECK I DON'T WANT TO GO HOME AND KISS MY KIDS UNTIL I'VE WASHED UP DURING FLU SEASON THE NEW YORK EXCHANGES OFFER FREE FLU SHOTS MICHAEL WILNER A NEW YORK MERC BOARD MEMBER DEADPANS IF YOU JAM SO MANY CHICKENS INTO THE HEN HOUSE YOU'VE GOT TO PUT A LOT OF ANTIBIOTICS INTO THEIR FEED RECENTLY A COMMUNICABLEDISEASE SCARE OF A FAR MORE SERIOUS SORT SWEPT THE FIVE NEW YORK COMMODITY MARKETS TWO TRADERS CAME DOWN WITH CONFIRMED CASES OF TUBERCULOSIS AND THE EXCHANGES BEGAN A PROGRAM OF MANDATORY TESTING NO ADDITIONAL CASES WERE FOUND IT WAS PRETTY SCARY I LOST 20 POUNDS WHILE I WAS SICK SAYS A RECOVERED JAMES MCCORMACK ONE OF THE TRADERS WHO CONTRACTED TB HIS DOCTORS DON'T KNOW HOW HE GOT THE CONTAGIOUS PULMONARY DISEASE ALSO WORRISOME ARE THE SERIOUS PHYSICAL INJURIES THAT OCCUR IN THE PITS GETTING POKED IN THE FACE OR NECK BY A COMPETITOR'S PEN IS ALMOST A RITE OF PASSAGE FRACTURED VERTEBRAE HERNIATED DISCS AND BROKEN FINGERS AND FEET ALSO OCCUR AT THE NEW YORK MERC WHERE PETROLEUM PRODUCTS ARE TRADED EIGHT TRADERS INCLUDING MR MARX SUFFERED HERNIAS LAST YEAR WITH PITS DOMINATED BY BEEFY GUYS IN THEIR 20S AND 30S SOME OF WHOM PUMP IRON TO STAY IN SHAPE PHYSICAL INJURIES SOMETIMES CAN BE SERIOUS NOTING THAT HIS HEAD TRADER IS OUT ON DISABILITY MR WILNER PRESIDENT OF AN OILTRADING FIRM SAYS HE GOT HIT SIDEWAYS IN THE PIT HIS HEAD JERKED AND HE'S OUT WITH A FRACTURED VERTEBRA HIS DOCTOR SAID HE CAN'T COME BACK TO THE TRADE FLOOR MOST TRADERS TAKE THE PHYSICAL PROBLEMS IN STRIDE MR MARX FOR INSTANCE SEES HUMOR IN HIS TRIPLEHERNIA OPERATION HIS CHRISTMAS CARD LAST YEAR INCLUDED A PHOTOGRAPH OF HIS SURGERYSCARRED STOMACH 9303190086 930319 BUSINESS BRIEF DIGICON GRANT TENSOR SET EXCHANGE OF STOCK IN MERGER AGREEMENT HOUSTON DIGICON INC AND GRANT TENSOR GEOPHYSICAL CORP SAID THEY SIGNED A LETTER OF INTENT TO MERGE THROUGH A STOCK EXCHANGE IN A TRANSACTION VALUED BETWEEN 95 MILLION AND 100 MILLION DIGICON A PROVIDER OF SEISMIC DATA TO THE PETROLEUM INDUSTRY WILL BE THE SURVIVING COMPANY IN THE MERGER UNDER THE AGREEMENT DIGICON SAID THAT EACH COMMON SHARE OF GRANT TENSOR IS TO BE EXCHANGED FOR 063 COMMON SHARES OF DIGICON ALSO EACH SHARE OF GRANT TENSOR CONVERTIBLE EXCHANGEABLE PREFERRED STOCK IS TO BE EXCHANGED FOR 38 COMMON SHARES OF DIGICON DIGICON WILL ISSUE ABOUT 16 MILLION COMMON SHARES IN THE TRANSACTION THE COMPANY SAID BRINGING THE NUMBER OF ITS OUTSTANDING COMMON SHARES TO 44 MILLION THE COMPANY ALSO WILL ASSUME GRANT TENSOR'S TOTAL INDEBTEDNESS OF 18 MILLION DIGICON SHARES FELL 25 CENTS YESTERDAY TO 4875 ON THE AMERICAN STOCK EXCHANGE AND IN OVERTHECOUNTER TRADING SHARES OF GRANT TENSOR ROSE 25 CENTS TO 2625 THE LETTER OF INTENT ALSO INCLUDES THE PLANNED SALE OF GRANT TENSOR'S DATA PROCESSING ASSETS TO PETROLEUM GEOSERVICES AS OF NORWAY THE SALE SUBJECT TO A SEPARATE AGREEMENT BETWEEN GRANT TENSOR AND THE NORWEGIAN FIRM SHOULD BE COMPLETED AT ABOUT THE SAME TIME AS THE ACQUISITION GRANT TENSOR A GEOPHYSICAL SERVICES COMPANY IS TO SELL ITS DATA PROCESSING CENTERS IN HOUSTON LONDON CAIRO METAIRIE LA AND CARACAS VENEZUELA TO PETROLEUM GEOSERVICES IN EXCHANGE FOR TOTAL CONSIDERATION OF ABOUT 20 MILLION ABOUT 125 MILLION OF WHICH WILL BE AN ASSUMPTION OF DEBT WITH THE BALANCE IN CASH YESTERDAY GRANT TENSOR SAID THAT BECAUSE OF ITS CURRENT LIQUIDITY POSITION IT WOULD DEFER PAYMENT ON ITS CONVERTIBLE EXCHANGEABLE PREFERRED STOCK DIVIDEND DUE MARCH 31 9303190085 930319 ICN BIOMEDICALS INC PLANS TO TAKE CHARGE TOTALING 73 MILLION COSTA MESA CALIF ICN BIOMEDICALS INC SAID ITS FOURTHQUARTER RESULTS WILL INCLUDE A 73 MILLION CHARGE THAT COMES CLOSE TO WIPING OUT THE COMPANY'S 772 MILLION OF SHAREHOLDER EQUITY REPORTED AT SEPT 30 1992 THE BIOMEDICAL RESEARCH CONCERN IS TAKING STEPS TO SHORE UP ITS EQUITY THAT WILL BE DISCLOSED AT THE TIME OF THE FOURTHQUARTER REPORT A SPOKESMAN SAID HE DECLINED TO ELABORATE RESULTS OF ICN PHARMACEUTICALS INC WHICH OWNS 86 OF ICN BIOMEDICALS WILL ALSO BE DEPRESSED BY THE CHARGE RESULTS FOR BOTH COMPANIES WILL BE RELEASED BY THE END OF THE MONTH THE SPOKESMAN SAID INCLUDED IN THE CHARGE IS A 355 MILLION WRITEOFF OF GOODWILL ASSOCIATED WITH ICN BIOMEDICAL'S NOVEMBER 1989 ACQUISITION OF FLOW LABORATORIES INC ICN BIOMEDICALS PAID 41 MILLION IN CASH AND STOCK FOR THE BIOLOGY RESEARCH CONCERN AND ALSO ASSUMED SUBSTANTIAL DEBT IN THE DEAL THE CHARGE ALSO INCLUDES WRITEOFFS OF OBSOLETE AND SLOWMOVING INVENTORY ICN BIOMEDICALS SAID CERTAIN BLOODTESTING KITS SOLD IN ITALY AND SOME BANDAGES SOLD OVERSEAS ARE AMONG THE OUTDATED PRODUCTS THE WRITEOFFS WILL HELP IMPROVE PROSPECTS FOR STRONGER PRODUCTS INCLUDING A LINE OF RADIO CHEMICALS AND CERTAIN DIAGNOSTIC INSTRUMENTS THE SPOKESMAN SAID IN THE FIRST NINE MONTHS OF 1992 ICN BIOMEDICALS REPORTED A NET LOSS OF 9 MILLION OR 50 CENTS A SHARE ON SALES OF 588 MILLION COMPARED WITH NET INCOME OF 507000 OR FOUR CENTS A SHARE ON SALES OF 757 MILLION IN THE YEAREARLIER PERIOD ALSO IN THE NINE MONTHS ICN PHARMACEUTICALS'S NET INCOME PLUNGED 88 TO 768000 OR TWO CENTS A SHARE FROM 62 MILLION OR 44 CENTS A SHARE SALES JUMPED 50 TO 4255 MILLION FROM 2853 MILLION MAINLY REFLECTING AN ACQUISITION IN YUGOSLAVIA ICN BIOMEDICALS STOCK CLOSED AT 3625 A SHARE UP 125 CENTS ON THE AMERICAN STOCK EXCHANGE ICN PHARMACEUTICALS STOCK CLOSED AT 11625 A SHARE UP 75 CENTS IN NEW YORK STOCK EXCHANGE TRADING 9303190084 930319 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON BUILDS MORE MOMENTUM BEHIND HIS ECONOMIC PLAN THE WHITE HOUSE ORCHESTRATES CALLS TO WAVERING LAWMAKERS FROM MAYORS COUNTY OFFICIALS AND GOVERNORS IN SUPPORT OF THE STIMULUS PROGRAM IT ALSO TURNS TO CLINTON'S OLD DEMOCRATIC LEADERSHIP COUNCIL FRIENDS FOR HELP IN COURTING PARTY MODERATES THE DEMOCRATIC CONGRESSIONAL CAMPAIGN COMMITTEE BUYS SATELLITE TIME FOR MEMBERS TO PLUMP FOR THE PLAN ON LOCAL TV STATIONS THE DEMOCRATIC NATIONAL COMMITTEE SEEKS TO REACH A MILLION PEOPLE THROUGH PHONE BANKS AND 500000 THROUGH DIRECTMAIL APPEALS BUT PROBLEMS REMAIN THE WHITE HOUSE IS ANNOYED THAT THE CONGRESSIONAL BLACK CAUCUS OFFERED AN ALTERNATIVE BUDGET AIDES WORRY THAT ONE OR TWO AMENDMENTS TO THE SENATE'S BUDGET RESOLUTION COULD PASS REDUCING THE TAX INCREASES CALLED FOR IN THE PLAN THE TAX HIKE ON UPPERINCOME SOCIAL SECURITY RECIPIENTS RUNS INTO MORE SENATE TROUBLE THAN THE ENERGY TAX EUROPE LOOMS SURPRISINGLY AS CLINTON'S FIRST TRADE TARGET AFTER WEEKS OF TOUGH TALK ON EUROPEAN AIRCRAFT SUBSIDIES AND INTRANSIGENCE ON WORLD TRADE TALKS THE ADMINISTRATION IS EXPECTED MONDAY TO LEVY SANCTIONS AGAINST THE EUROPEAN COMMUNITY IN A DISPUTE OVER GOVERNMENT PURCHASING EC OFFICIALS GROUSE ABOUT HOW HARD IT WAS TO SET UP A MEETING BETWEEN EC CHIEF DELORS AND CLINTON SOME ADMINISTRATION OFFICIALS HAD HOPED CLINTON WOULD FOCUS QUICKLY ON JAPAN BUT IT SO FAR ESCAPES WITH ONLY JAWBONING GROWING SALES OF US SEMICONDUCTORS THERE GIVE TRADE REPRESENTATIVE KANTOR LITTLE CAUSE TO CALL FOR SANCTIONS IN AN ANNOUNCEMENT DUE TUESDAY INSTEAD THE US WILL PROBABLY CALL FOR CONTINUING THE EXISTING 20 SETASIDE FOR FOREIGN COMPUTER CHIP SALES IN JAPAN TOUGH TALK CHINA IS WARNED TO IMPROVE ITS BEHAVIOR OR FACE PENALTIES THE STATE DEPARTMENT SENDS PRIVATE SIGNALS THAT CONDITIONS WILL BE ATTACHED TO RENEWAL OF CHINA'S FAVORED TRADE STATUS UNLESS IT AMONG OTHER THINGS RELEASES SOME POLITICAL PRISONERS STOPS SELLING WEAPONS TO THE LIKES OF IRAN AND LIBYA AND COOPERATES WITH MONITORING EFFORTS TO ASSURE IT ISN'T USING PRISONERS TO MAKE US EXPORTS FEARING THE WORST US COMPANIES DOING BUSINESS WITH CHINA PLAN A MAJOR LOBBYING EFFORT THEY WILL ARGUE THAT CHINA'S HUGE TRADE SURPLUS WITH THE US ISN'T CAUSED BY UNFAIR TRADE PRACTICES BUT BY SOUTH KOREA AND TAIWAN PRODUCING GOODS IN CHINA TO TAKE ADVANTAGE OF LOW WAGES BRITAIN AND JAPAN ALSO PRESSURE CLINTON WARNING THAT A RUPTURE IN SINOUS RELATIONS WOULD BE DESTABILIZING AND WOULD HURT HONG KONG PEROT'S FORCES BEGIN THROWING THEIR WEIGHT BEHIND CAMPAIGNFINANCE REFORM THE CALIFORNIA BRANCH OF HIS UNITED WE STAND AMERICA URGES ITS TROOPS TO CALL OR WRITE THE WHITE HOUSE CONGRESS AND A LOCAL NEWSPAPER AND TO RECRUIT FIVE FRIENDS TO DO LIKEWISE PEROT PLANS TO PUBLISH A BOOK ON THE THEME NEXT MONTH AND HIT IT IN HIS TELEVISED TOWN MEETING SUNDAY UNCOMMON CAUSE PUSHING AN EXCEPTION TO PROPOSED CAMPAIGNFINANCE OVERHAUL ALLOWING EMILY'S LIST THE WOMEN'S PAC TO BUNDLE INDIVIDUAL CONTRIBUTIONS FOR A SINGLE CANDIDATE LOBBYIST TOMMY BOGGS'S FIRM CALLS FOR ENDING THE LINK BETWEEN SPECIALINTEREST MONEY AND SPECIALINTEREST LEGISLATIVE ACCESS THE FIRM INSISTS IT'S JUST A COINCIDENCE THAT THE PROVISION WOULD PROVIDE THE SAME LOOPHOLE FOR ONE OF BOGGS'S BIGGEST CLIENTS A PAC FOR FOREIGNAUTO DEALERS SECRET CODE FRIENDS AND MAJOR SUPPORTERS OF BILL AND HILLARY RECEIVE A LETTER FROM THE WHITE HOUSE TELLING THEM TO USE A SPECIAL NINEDIGIT ZIP CODE TO ENSURE THAT ANY CORRESPONDENCE FROM YOU REACHES THEM IMMEDIATELY THE LETTER ADDS HEARING FROM THEIR FRIENDS ON A REGULAR BASIS IS IMPORTANT TO THE CLINTONS RENO FACES A TOUGH CALL ON THE PROBE OF WAYS AND MEANS CHAIRMAN ROSTENKOWSKI BY GOPAPPOINTED DC FEDERAL PROSECUTOR JAY STEPHENS THE YEARLONG INVESTIGATION DRAWS INCREASING FIRE AS A FISHING EXPEDITION BUT ANY MOVE BY THE ATTORNEY GENERAL TO END IT WOULD BRING ACCUSATIONS OF POLITICAL MANIPULATION NEW WOMEN LAWMAKERS ALREADY MAKE A MARK ON CONGRESS FLORIDA REP MEEK WINS PRAISE IN THE APPROPRIATIONS COMMITTEE CALIFORNIA SEN BOXER HAD A HIGH PROFILE IN THE HOUSE BUT SHOWS SIGNS OF BEING MORE OF AN INSIDER IN THE SENATE REP DUNN OF WASHINGTON PLAYS A PROMINENT ROLE IN THE SUCCESSFUL GOP MOVE TO ELIMINATE FOUR HOUSE COMMITTEES WASHINGTON SEN MURRAY GETS ATTENTION FOR HER SPEECH ON FAMILY LEAVE WOMEN ARE MAKING THEMSELVES FELT ON A VARIETY OF ISSUES THE EXPANDED WOMEN'S CAUCUS MEETS WITH HILLARY RODHAM CLINTON TO DISCUSS WOMEN'S HEALTH ISSUES AND BIDS TO CONTROL SPONSORSHIP OF THE FREEDOM OF CHOICE ACT THAT WOULD CODIFY ABORTION RIGHTS THE CAUCUS SEEKS TO MEET WITH RENO TO DISCUSS PROTECTING ACCESS TO CLINICS FOLLOWING THE MURDER OF A FLORIDA DOCTOR MINOR MEMOS THE MORNING SHOW ON LOCAL FM STATION WRQX IS FLOODED WITH REQUESTS FOR I AM HILLARY A PARODY OF I AM WOMAN SAMPLE LYRIC I AM HILLARY HEAR ME ROAR/I'M MORE IMPORTANT THAN AL GORE PEERING OVER THE MICROPHONES AT AN EDUCATORS' CONFERENCE 4FOOT10 LABOR SECRETARY REICH INQUIRES DO I LOOK LIKE BIG GOVERNMENT TO YOU THE COMMERCE DEPARTMENT HAS SOLD ABOUT 1200 COPIES ON COMPUTER DISK OF CLINTON'S ECONOMIC PLAN 9303190082 930319 TWO CANADA PROVINCES DELIVER ON PROMISES TO TRIM BUDGET GAPS TORONTO SASKATCHEWAN AND NEWFOUNDLAND THE FIRST OF CANADA'S 10 PROVINCES TO UNVEIL THEIR BUDGETS FOR THE COMING FISCAL YEAR HAVE DELIVERED ON PROMISES TO CUT THEIR BUDGET DEFICITS MOSTLY BY AXING SPENDING ON SOCIAL PROGRAMS AND WAGES OTHER PROVINCES UNDER THREAT FROM INVESTORS AND CREDIT RATING AGENCIES ALSO HAVE VOWED TO TAKE MORE SEVERE MEASURES THAN IN THE PAST TO PARE THEIR DEFICITS ONTARIO CANADA'S BIGGEST PROVINCE IS EXPECTED TO RUN A BUDGET DEFICIT OF ABOUT 13 BILLION CANADIAN DOLLARS US104 BILLION THIS YEAR SASKATCHEWAN'S BUDGET PROJECTS A DEFICIT FOR THE YEAR BEGINNING APRIL 1 OF C296 MILLION HALF THE ESTIMATED C592 MILLION FOR THE CURRENT YEAR THE PROVINCE HAS BUDGETED EXPENDITURES NEXT YEAR OF C49 BILLION WHILE IT EXPECTS REVENUES OF ABOUT C46 BILLION SASKATCHEWAN OUTLINED A SERIES OF TAX INCREASES AND SPENDING CUTS INCLUDING A 3 REDUCTION IN THE BUDGET FOR HEALTH CARE TO C14 BILLION THE CUTBACKS ENCOMPASS MENTALHEALTH SERVICES AND A CHILDREN'S DENTALCARE PROGRAM NEWFOUNDLAND EXPECTS MUCH MORE MODEST DEFICIT REDUCTION IN THE COMING YEAR TO C2232 MILLION FROM C240 MILLION EXPECTED IN THE CURRENT YEAR THE ATLANTIC PROVINCE SAID ITS NEW BUDGET INCLUDES NO NEW TAXES HOWEVER PUBLICSERVICE WAGES AND AGRICULTURAL SUBSIDIES WERE CUT NEWFOUNDLAND ALSO ANNOUNCED A CLAMPDOWN ON SOCIALASSISTANCE CHEATERS CREDIT RATING AGENCIES HAVE WARNED THAT PROVINCIAL RATINGS COULD BE CUT FURTHER UNLESS THE GOVERNMENTS REDUCE THEIR BUDGET DEFICITS 9303190081 930319 WHO'S NEWS AMERICAN GENERAL'S HALEY GETS NEW POST HOUSTON AMERICAN GENERAL CORP SAID IT NAMED ROY W HALEY THE COMPANY'S PRESIDENT AS CHIEF OPERATING OFFICER THE APPOINTMENT SOLIDIFIES MR HALEY'S POSITION AS THE HEIR APPARENT TO HAROLD S HOOK THE 61YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE INSURANCE COMPANY ALSO NOTED THAT MR HOOK HAS INFORMED THE BOARD THAT HE WILL RETIRE IN LATE 1994 MR HOOK WHO HAS BEEN WITH AMERICAN GENERAL FOR 15 YEARS SAID HE HAS LONG HOPED TO RETIRE EARLY TO PURSUE OTHER INTERESTS MR HOOK SAID THE ADDITIONAL DUTIES GIVEN TO THE 46YEAROLD MR HALEY WHO HAS BEEN PRESIDENT SINCE MAY 1991 IS A MAJOR STEP IN OUR MANAGEMENT SUCCESSION PLANNING HAVING MR HALEY SUCCEED HIM IS CERTAINLY THE NEXT LOGICAL STEP HE SAID MR HOOK AND MR HALEY HAVE BEEN PART OF A THREEPERSON CHAIRMAN'S OFFICE WHICH ALSO INCLUDES MICHAEL J POULOS MR POULOS 61 REMAINS VICE CHAIRMAN MR HALEY JOINED AMERICAN GENERAL IN 1988 AS A SENIOR OFFICER AND WAS NAMED PRESIDENT OF ITS AMERICAN GENERAL FINANCE UNIT IN 1989 HE WAS PREVIOUSLY A MANAGEMENT CONSULTING PARTNER IN THE HOUSTON OFFICE OF ARTHUR ANDERSEN & CO 9303190080 930319 ECONOMY CLINTON MULLS WITHHOLDING TAX BREAKS FOR UTILITIES TO PRESSURE STATE REGULATORS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS CONTEMPLATING WITHHOLDING CERTAIN IMPORTANT TAX BREAKS FOR UTILITIES AS PART OF AN EFFORT TO ENSURE THAT ITS PROPOSED ENERGY TAX IS ULTIMATELY PAID FOR BY CONSUMERS THE PLAN WOULD PRESSURE STATE REGULATORS TO ALLOW UTILITIES TO PASS THROUGH THE ENERGY TAX TO THE HOUSEHOLDS AND BUSINESSES THEY SERVE THE UTILITIES WOULD BE ABLE TO TAKE ADVANTAGE OF THE TAX BREAKS INVESTMENT TAX CREDITS AND ACCELERATED DEPRECIATION FOR EXAMPLE ONLY IF THE REGULATORS WENT ALONG IT'S IN THE INTEREST OF THE REGULATORS TO SEE THE UTILITIES TAKE ADVANTAGE OF THESE TAX BREAKS BECAUSE THEY HELP TO HOLD DOWN RATES FOR THE PUBLIC THE UTILITY OPERATORS AND THE REGULATORS STRONGLY OPPOSE THE POSSIBLE PLAN WHICH HAS BEEN FLOATED BY DEPUTY TREASURY SECRETARY ROGER ALTMAN IN MEETINGS WITH INDUSTRY EXECUTIVES THIS WEEK STILL IT'S BEING LOOKED AT SERIOUSLY BY ADMINISTRATION OFFICIALS AS A POTENTIAL SOLUTION TO A DIFFICULT DILEMMA THE WHITE HOUSE WANTS CONSUMERS ULTIMATELY TO PAY THE ENERGY TAX THEREBY ENCOURAGING CONSERVATION BUT IT DOESN'T WANT TO IMPOSE THE TAX DIRECTLY ON ENDUSERS BY SIMPLY PUTTING IT ON CUSTOMERS' BILLS LIKE THE TELEPHONE EXCISE TAX THAT'S BECAUSE IN THE EYES OF SOME CLINTON ADVISERS IT'S IMPORTANT TO CAMOUFLAGE THE LEVY FOR POLITICAL REASONS OTHERS ARGUE THAT THERE ARE ADMINISTRATIVE PROBLEMS IN COLLECTING THE ENERGY TAX AT THE CONSUMER LEVEL AS A RESULT THE TREASURY IS LEANING TOWARD IMPOSING THE TAX AT POINTS AT WHICH GAS AND ELECTRIC UTILITIES WOULD BE FORCED TO PASS THE LEVY THROUGH TO THEIR CUSTOMERS THE TRICK THEN BECOMES FINDING A WAY TO GUARANTEE THAT STATE REGULATORS WOULD PERMIT SUCH A PASSTHROUGH TO TAKE PLACE TREASURY OFFICIALS STRESSED THAT THE DETAILS OF THE ENERGY TAX ARE STILL BEING HASHED OUT AND NOTHING IS FINAL JUST THE IDEA OF WITHHOLDING TAX BREAKS HOWEVER HAS SENT THOSE THAT WOULD BE AFFECTED BY SUCH A MOVE INTO A FRENZY MICHAEL FOLEY DIRECTOR OF FINANCIAL ANALYSIS FOR THE NATIONAL ASSOCIATION OF REGULATORY UTILITY COMMISSIONERS SAID HIS GROUP WOULD CONSIDER SUCH A STEP AN INTRUSION ON ITS AUTHORITY WE FLATLY OPPOSE EFFORTS SUCH AS THIS WHICH TIE OUR HANDS HE SAID THE COSTS ASSOCIATED WITH AN ENERGY TAX SHOULD BE TREATED NO DIFFERENTLY THAN ANY OTHER COST INCURRED BY A UTILITY COMPANY FOR THEIR PART THE UTILITIES FEAR THAT THE TREASURY PLAN COULD BADLY BACKFIRE IF THE STATE REGULATORS STILL DECIDE THAT THE TAX SHOULDN'T BE PASSED THROUGH THE COMPANIES WOULD GET HIT WITH A DOUBLEWHAMMY THEY'D PRESUMABLY HAVE TO EAT THE ENERGY TAX PLUS THEY'D BE DENIED THE TAX BREAKS THIS IS A MAJOR CONCERN TO US SAID MICHAEL BALY PRESIDENT OF THE AMERICAN GAS ASSOCIATION WHICH IS URGING THAT THE ENERGY TAX BE IMPOSED DIRECTLY ON CUSTOMERS THIS COULD BE VERY RISKY ADDED DAVID OWENS SENIOR VICE PRESIDENT AT THE EDISON ELECTRIC INSTITUTE IT PUTS THE BURDEN BACK ON THE UTILITY DESPITE THE OUTCRY IT'S NOT CLEAR THAT THE TREASURY HAS MANY OTHER AVENUES TO PURSUE DRAFTING FEDERAL LEGISLATION THAT WOULD ORDER THE REGULATORS TO PASS ALONG THE ENERGY TAX WOULD BE SEEN AS A BLATANT CHALLENGE TO STATE SOVEREIGNTY AND ISN'T AS LIKELY TO BE SUPPORTED BY PRESIDENT CLINTON HIMSELF A FORMER GOVERNOR IN ADDITION SOME TREASURY OFFICIALS AREN'T CONVINCED THAT THE PASSTHROUGH ISSUE IS AS DIRE AS THE UTILITIES MAKE IT THEY THINK THE UTILITIES ARE LESS WORRIED ABOUT BEING STUCK WITH THE ENERGY TAX THAN THEY ARE ABOUT APPEARING BEFORE THE REGULATORS IN RATE CASES EVERY TIME THE COMPANIES DO THAT IT OPENS UP THEIR COST STRUCTURES TO SCRUTINY AND EXPERTS SAY THAT MANY UTILITIES AREN'T REFLECTING CURRENT LOW INTEREST RATES 9303190079 930319 JAPAN BROKERS CUT FORECASTS FOR 1993 PROFIT NOMURA AND NIKKO PREDICT THEY WILL BREAK EVEN CITING MARKET REBOUND BY DOUGLAS APPELL SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S TOP BROKERAGE HOUSES SHARPLY REVISED DOWNWARD THEIR EARNINGS FORECASTS THURSDAY BUT THE STOCK MARKET'S RECENT REBOUND ALLOWED NOMURA SECURITIES CO AND NIKKO SECURITIES CO TO PREDICT THAT THEY WILL AVOID POSTING UNCONSOLIDATED PRETAX LOSSES FOR THE YEAR THE SECURITIES HOUSES ANNOUNCED FURTHER PLANS TO CUT COSTS INCLUDING CONTINUED REDUCTIONS IN EMPLOYMENT LEVELS AND SALARIES SOME ANALYSTS SAID THE IMPACT OF SUCH COSTCUTTING MEASURES AND A RELATIVE PICKUP IN THE MARKET THIS YEAR MAKES THEM BULLISH ON THE BROKERS I THINK PEOPLE WILL BE SURPRISED AT HOW MUCH MONEY THE BROKERS WILL MAKE NEXT YEAR SAID DAVID SNODDY A FINANCIAL SECTOR ANALYST WITH JARDINE FLEMING SECURITIES LTD BUT OTHER ANALYSTS REMAIN CAUTIOUS WITH SECURITIES TRADING COMMISSIONS LIKELY TO BE DEREGULATED OVER THE COMING YEARS AND FINANCIAL DEREGULATION SET TO BOOST COMPETITION AN EXPECTED RECOVERY IN VOLUME THIS YEAR WON'T BE A PANACEA THEY SAID CRAIG CHUDLER STRATEGIST WITH UBS PHILLIPS & DREW INTERNATIONAL SAID BROKERS' PROFITS MAY IMPROVE OVER THE COMING YEAR AS VOLUME REBOUNDS BUT IT IS HARDER TO RECOMMEND ANY BUT THE MOST POWERFUL BROKERS ON A LONGER TERM BASIS IN LIGHT OF THE CHANGES SWEEPING THE INDUSTRY HE SAID AMONG JAPAN'S BIG FOUR BROKERS AND 10 BIGGEST SECOND TIER BROKERS ONLY NOMURA JAPAN'S TOP BROKER AND NIKKO THE THIRDLARGEST BROKER SAID THEY WILL AVOID PRETAX LOSSES THIS YEAR NOMURA AND NIKKO SAID THEY WILL BREAK EVEN DOWN FROM RESPECTIVE FORECASTS OF PROFITS OF 20 BILLION YEN 1706 MILLION AND 15 BILLION YEN IN SEPTEMBER ALL OTHER MAJOR BROKERS PREDICTED PRE TAX LOSSES YAMAICHI SECURITIES CO JAPAN'S FOURTHBIGGEST BROKER FORECAST A 39 BILLION YEN LOSS SHARPLY DOWN FROM ITS EARLIER PREDICTION OF A ONE BILLION YEN PROFIT JARDINE FLEMING'S MR SNODDY SAID THURSDAY'S REVISIONS WOULD HAVE BEEN EVEN WORSE IF THE MARKET HADN'T BOUNCED DURING THE PAST FEW DAYS THE NIKKEI STOCK INDEX HAS SURGED 12 TO 1872790 SINCE MARCH 4 ON A WAVE OF BULLISHNESS ABOUT THE PROSPECTS FOR THE STOCK MARKET OVER THE COMING MONTHS VOLUME WHICH HAD LANGUISHED AROUND 200 MILLION SHARES A DAY OVER THE PAST FEW MONTHS HAS REBOUNDED TO 400 MILLION TO 800 MILLION SHARES OVER THE LAST WEEK BUT WALTER ALTHERR AN ANALYST AT WI CARR OVERSEAS LTD SAID IT IS FAR FROM CERTAIN THAT RECENT IMPROVED VOLUME CAN BE SUSTAINED AND COST CUTTING HASN'T PROCEEDED ENOUGH TO ENSURE PROFITS FOR MANY BROKERS AT EVEN CURRENT VOLUME LEVELS HE SAID BROKERS PLEDGED FURTHER WORK FORCE REDUCTIONS IN AN EFFORT TO TRIM FIXED COSTS DAIWA SECURITIES CO NIKKO AND YAMAICHI SAID THEY WILL LOWER THEIR WORK FORCES BY 700 600 AND 900 RESPECTIVELY OVER THE COMING FISCAL YEAR FOR REDUCTIONS OF 6 TO 9 BUT WI CARR'S MR ALTHERR SAID THE SECOND TIER BROKERS IN PARTICULAR STILL HAVE A LOT OF COST CUTTING AHEAD OF THEM HE SAID IT IS STILL TOO EARLY TO RECOMMEND BUYING BROKERS' SHARES WITH NONLIFE INSURANCE COMPANIES AND REGIONAL BANKS OFFERING MUCH BETTER VALUES IN TERMS OF FUNDAMENTALS UBS PHILLIPS & DREW STRATEGIST MR CHUDLER SAID CONDITIONS COULDN'T GET MUCH WORSE FOR BROKERS THIS YEAR AFTER A HORRENDOUS YEAR MARKED BY LOW TURNOVER AND AN ALMOST TOTAL LACK OF UNDERWRITING ACTIVITY IN THAT SENSE BROKERS HAVE PROBABLY TURNED THE CORNER HE SAID BUT MR CHUDLER SAID THERE ARE SCARY PROSPECTS FOR SECURITIES COMPANIES AROUND THAT CORNER MR CHUDLER SAID ANY SCENERIO THAT PREDICTS A STRONG UPTURN FOR BROKERS DUE TO A RECOVERY IN TURNOVER IS VERY SUSPECT ALTHOUGH THE FINANCE MINISTRY HAS GONE SLOW IN DEREGULATING COMMISSIONS AMID THE INDUSTRY'S WEAKNESS WHEN THE MARKET PICKS UP DEREGULATION WILL PROCEED AS WELL HE SAID COMPANIES MUST BECOME MORE SOPHISTICATED DEVELOPING NEW FINANCIAL PRODUCTS TO WIN INVESTORS RATHER THAN RELYING ON COMMISSION INCOME HE SAID WITH FINANCIAL SECTOR LIBERALIZATION SET TO ALLOW BANKS AND INSURANCE COMPANIES TO ENTER THE BROKERAGE INDUSTRY FROM THIS YEAR THROUGH SUBSIDIARIES COMPETITION IS GOING TO HEAT UP ANALYSTS SAY THE INDUSTRY IS STILL IN SERIOUS TROUBLE AND A MAJOR REORGANIZATION IS UNAVOIDABLE MR CHUDLER SAID 9303190078 930319 SEC CLEARS WAY FOR SYSTEM TO REPORT PRICES AND VOLUME IN JUNKBOND MARKET BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION CLEARED THE WAY FOR THE FIRSTEVER SYSTEM FOR PUBLICLY REPORTING PRICES AND TRADING VOLUME IN THE JUNKBOND MARKET IN SEPARATE ACTIONS RELATED TO MUTUAL FUNDS THE SEC VOTED TO REQUIRE FUNDS TO GIVE INVESTORS MORE INFORMATION ABOUT THE FUNDS' MANAGEMENT AND PERFORMANCE THE COMMISSION ALSO PROPOSED ALLOWING MUTUAL FUNDS TO TARGET INVESTORS WITH ADVERTISEMENTS AND DIRECT MAIL CONTAINING CONDENSED VERSIONS OF THE FUNDS' PROSPECTUSES IN ANOTHER ACTION THE SEC ALSO PROPOSED A RULE THAT WOULD REQUIRE BROKERAGE FIRMS TO ENSURE THAT THEIR TRADING PERSONNEL ARE LICENSED WITH THE NEW YORK STOCK EXCHANGE OR OTHER SELFREGULATING BODY THE JUNKBOND REPORTING SYSTEM BEING DEVELOPED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WILL INITIALLY COVER 30 TO 50 OF THE MOST ACTIVELY TRADED JUNKBOND ISSUES ALTHOUGH PRICES AND TRADING VOLUME FOR ALL ISSUES WILL BE COLLECTED BY THE NASD DEALERS IN THE SMALLER GROUP OF ACTIVELY TRADED BONDS WILL REPORT PRICES TO THE NASD WITHIN FIVE MINUTES OF TRADES BUT REPORTS ON THE PUBLIC SYSTEM WILL BE MADE HOURLY AND WILL REFLECT ONLY THE HIGH AND LOW PRICES REPORTED FOR EACH ISSUE DURING THE PREVIOUS HOUR THE PUBLIC REPORTS WILL ALSO INCLUDE THE VOLUME OF TRADES IN THE PREVIOUS HOUR THE NASD SAID IT EXPECTS THE PUBLICREPORTING SYSTEM TO BE OPERATING IN SEPTEMBER THE MUTUALFUND RULES ADOPTED BY THE SEC REQUIRE FUND MANAGERS TO CHART THEIR FUNDS' PERFORMANCE OVER THE PRECEDING 10 YEARS AND TO COMPARE THE INVESTMENT RETURN TO THAT OF AN INDEX OF STOCKS OR OTHER SECURITIES SIMILAR TO THOSE HELD BY THE FUND THE FUNDS' MANAGERS ARE ALSO REQUIRED TO PROVIDE INVESTORS WITH A WRITTEN ASSESSMENT OF THE FUNDS' PERFORMANCE AND STRATEGIES THE RULES ARE DESIGNED TO GIVE MUTUALFUND INVESTORS MORE DATA WITH WHICH TO COMPARE THE PERFORMANCE OF THEIR FUNDS WITH OTHER INVESTMENT OPTIONS IN THAT RESPECT THE RULES MIRROR THOSE ADOPTED LAST YEAR FOR PUBLICLY TRADED COMPANIES BUT THE PROPOSED DISCLOSURE RULES FOR MUTUAL FUNDS WENT FURTHER THAN THOSE FOR COMPANIES BY REQUIRING THE FUNDS TO IDENTIFY IN THEIR PROSPECTUSES THE PRINCIPAL MANAGER OF EACH FUND THE PROPOSED RULES ALSO WOULD REQUIRE THE FUNDS TO NOTIFY ALL SHAREHOLDERS IMMEDIATELY WHEN A FUND MANAGER LEFT THE NOTIFICATION REQUIREMENT AND ITS POTENTIAL COST PROMPTED HEAVY QUESTIONING YESTERDAY FROM SEC CHAIRMAN RICHARD BREEDEN MR BREEDEN SUGGESTED THAT FUNDS BE REQUIRED TO REPORT MANAGEMENT CHANGES NO MORE OFTEN THAN ONCE A MONTH AND POSSIBLY QUARTERLY DIFFERENT TIMETABLE THE SEC STAFF WAS DIRECTED TO DRAW UP A DIFFERENT TIMETABLE FOR REPORTING MANAGEMENT CHANGES AND SUBMIT IT FOR COMMISSION APPROVAL LATER THE SEC ALSO PROPOSED ALLOWING MUTUAL FUNDS TO ATTRACT MORE INVESTORS THROUGH ADVERTISEMENTS CURRENT ADVERTISING RULES REQUIRE FUNDS TO MAIL PROSPECTUSES TO POTENTIAL INVESTORS BEFORE ACCEPTING THEIR INVESTMENTS THE NEW PROPOSAL WOULD PERMIT FUNDS TO ELIMINATE THE MAILING BY INCLUDING THE KEY POINTS OF THEIR PROSPECTUSES IN ADVERTISEMENTS THE INFORMATION IN THE ADS WOULD BE AS LEGALLY BINDING ON THE FUNDS AS THE INFORMATION CONTAINED IN A FULL PROSPECTUS THE PROPOSAL IMMEDIATELY DREW A REBUKE FROM REP EDWARD J MARKEY WHO OVERSEES SOME SEC ACTIVITIES AS CHAIRMAN OF THE HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE IN A STATEMENT THE MASSACHUSETTS DEMOCRAT SAID HE IS CONCERNED THAT INVESTORS WOULDN'T GET ALL THE INFORMATION THEY NEED IN AN ADVERTISEMENT INSTEAD HE SUGGESTED PROSPECTUSES SHOULD BE WRITTEN IN PLAIN ENGLISH UNLIKE AN ADVERTISEMENT A PLAIN ENGLISH PROSPECTUS WOULD CONTAIN ALL THE CRITICAL INFORMATION NEEDED THE SEC SAID IT WILL COLLECT COMMENTS ON THE PROPOSED ADVERTISING RULE OVER THE NEXT 90 DAYS THE PROPOSAL TO REQUIRE ALL BROKERDEALERS TO MAKE SURE THAT THEIR TRADERS ARE LICENSED HAS BEEN OFFERED BEFORE IN DIFFERENT FORMS BUT THIS PARTICULAR RULE WAS PROMPTED BY THE RECENTLY CONCLUDED INVESTIGATION OF US UNITS OF JAPANESE BROKERAGE FIRMS THE WIDERANGING INVESTIGATION UNCOVERED MANY TRADERS AND MANAGERS WHO HADN'T BEEN TESTED OR LICENSED BY THE NYSE OR OTHER REGULATORY BODY THE SEC SAID BUT BECAUSE OF THE LACK OF A LICENSING REQUIREMENT AT THE SEC THE COMMISSION COULD CHARGE ONLY THAT THE FIRMS HAD FAILED TO KEEP RECORDS OF REMINDERS TO THEIR TRADERS TO TAKE LICENSING EXAMS THE US UNITS OF THREE JAPANESE BROKERAGE FIRMS SETTLED THE RECORDKEEPING COMPLAINTS WITHOUT ADMITTING OR DENYING WRONGDOING 9303190077 930319 INTERNATIONAL WORLD ECONOMY UNOFFICIAL TRADE BARRIERS IN JAPAN POSE POLICY DILEMMA FOR WASHINGTON BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL NORTHVILLE MICH THERE'S A COMPANY HERE WITH A FANTASTIC DEAL FOR ANYONE WHO WANTS TO BUY A WINDOW IN JAPAN IT WILL SHIP OVER THE HIGHESTTECH TYPE OF GLASSTINTED INSULATED OR WHATEVER THE CUSTOMER WANTS HAVE IT CUT TO SIZE INSTALLED IN A FRAME AND DELIVERED ANYWHERE ALL FOR A PRICE NO JAPANESE SUPPLIER WILL MATCH BUT IT'S ALMOST IMPOSSIBLE TO FIND A JAPANESE CUSTOMER WHO DARES TO BUY ITS PRODUCTS OR A FABRICATOR WHO DARES TO SELL THEM BUY ONE PIECE OF GLASS FROM A FOREIGNER WARN THE THREE JAPANESE COMPANIES THAT DOMINATE THE BUSINESS THERE AND YOU MAY NEVER GET ANOTHER FROM US AT LEAST THAT'S THE WAY THEY TELL IT HERE AT GUARDIAN INDUSTRIES CORP AN AGGRESSIVE PRIVATELY HELD GLASS PRODUCER THAT HAS BECOME THE WORLD'S FIFTHLARGEST IN RECENT YEARS GUARDIAN IS A MAJOR PLAYER IN EVERY BIG GLASS MARKET BUT JAPAN A 4 BILLION MARKET SECOND ONLY TO THE US ITS PROBLEM SHARED BY ALL NONJAPANESE GLASSMAKERS IS THE SORT THAT US EUROPEAN AND JAPANESE GOVERNMENTS MUST SOLVE BEFORE THEY CAN END THEIR FRACTIOUS TRADE DISPUTES MANY NATIONS CLAIM JAPAN FOLLOWS A PREDATORY TRADE POLICY PROTECTING ITS OWN TURF SO IT CAN INVADE OTHERS AND THE FLATGLASS EXPERIENCE SUGGESTS THE CRITICS SOMETIMES HAVE A CASE AS LONG AS THIS PERSISTS TOKYO RISKS TOUGH RETALIATION FROM INDIGNANT COUNTRIES FED UP WITH HUGE AND RISING TRADE DEFICITS WITH JAPAN AND IF THAT HAPPENS WORLD TRADE WILL SUFFER A SEVERE BOUT OF PROTECTIONISM HURTING EVERYONE MOST OF ALL JAPAN IT'S CLEAR THE GLASS TRADE IN JAPAN IS ANYTHING BUT A FREE AND OPEN MARKET THREE DOMESTIC PRODUCERS HAVE 100 OF THE GLASSMAKING CAPACITY AND OWN OR CONTROL 99 OF THE DISTRIBUTION SYSTEM FOR MORE THAN 20 YEARS THEY HAVE DIVIDED THE MARKET ON A 532 BASIS AVOIDED PRICE COMPETITIONWHILE CHARGING FROM 30 TO 400 ABOVE WORLD RATES AND ABOVE ALL KEPT OUT FOREIGNERS AND THEY HAVE USED HUGE HOME PROFITS TO ACQUIRE FACTORIES OVERSEAS SO THAT THEY NOW HAVE LARGE AND GROWING MARKET SHARES IN EUROPE NORTH AMERICA AND ASIA NOT MUCH HAS CHANGED SINCE 1984 WHEN THE JAPAN FAIR TRADE COMMISSION SAID THE INDUSTRY IS IN A STATE OF HIGH OLIGOPOLY CLAIMS BY FOREIGNERS THAT THEY FACE UNFAIR PERHAPS ILLEGAL BUSINESS PRACTICES ARE PROBABLY TRUE CONCEDES A JAPANESE TRADE OFFICIAL IT'S A CLASSIC EXAMPLE OF THE UNOFFICIAL TRADE RESTRAINTS THAT JAPAN IS SO OFTEN ACCUSED OF OFFICIAL SUBSIDIES TARIFFS OR QUOTAS AREN'T INVOLVED RATHER THE THREE JAPANESE GLASSMAKERS EACH TIED TO A KEIRETSU OR BUSINESS GROUP APPARENTLY HAVE DIVIDED THE LOCAL MARKET TO CHARGE HIGH AND NONNEGOTIABLE PRICES BECAUSE THEY OWN OR CONTROL NEARLY ALL DISTRIBUTORS AND FABRICATORS CUSTOMERS HAVE NOWHERE ELSE TO GO IMPORTS EXCLUDING THOSE FROM JAPANESEOWNED FACTORIES OVERSEAS FILL LESS THAN 1 OF THE MARKET THE THREE ENFORCE THEIR GRIP RALPH GERSON GUARDIAN'S EXECUTIVE VICE PRESIDENT AND A FORMER US TRADE NEGOTIATOR SAYS HIS COMPANY ONCE SOLD TO A CUSTOMER OF ASAHI GLASS CO JAPAN'S LARGEST PRODUCER AN ASAHI SALESMAN CALLED SCOLDED THE BUYER THEN BOUGHT THE AMERICAN GLASS AND SUBSTITUTED SOME FROM ASAHI ONE WAY TO TACKLE THE PROBLEM WOULD BE FOR COMPANIES LIKE GUARDIAN TO INVEST MILLIONS ON THEIR OWN DISTRIBUTION NETWORKS THOUGH THERE'S NO GUARANTEE OF SUCCESS THAT MIGHT PERSUADE THE CAUTIOUS JAPANESE THAT THE FOREIGN COMPANIES WILL BE RELIABLE SUPPLIERS NOT JUST MARAUDERS SEEKING A QUICK YEN BEFORE MOVING ON GUARDIAN IS AN AUSTERE OPERATOR THAT DOESN'T LIKE TO SPEND MONEY THIS WAY THOUGH IT'S NOW TRYING JUST THAT BUT ONE US OFFICIAL IS SKEPTICAL THAT'S WHAT THEY SAID LAST YEAR HE NOTES THEY SHOULD HAVE STARTED LONG AGO THE OTHER WAY IS FOR GOVERNMENTS TO WEIGH IN MORE HEAVILY TOKYO LAST YEAR PROMISED PRESIDENT BUSH IT WOULD HELP OPEN THE GLASS MARKET BUT IT HASN'T DONE MUCH SO FAR THE JAPAN FAIR TRADE COMMISSION FOR EXAMPLE SAYS IT HASN'T GOT THE STAFF OR BUDGET LET ALONE THE INCLINATION TO CONDUCT A SERIOUS ANTITRUST INVESTIGATION AND IT'S APPARENTLY NOT GETTING POLITICAL PRESSURE TO DO SO BUT WASHINGTON COULD INSIST THAT TOKYO PUT ON THE ANTITRUST PRESSURE RATHER THAN TOLERATE SUCH RESTRICTIVE PRACTICES AND RISK RETALIATION FROM TRADING PARTNERS THAT'S A LEGITIMATE SUBJECT TO DISCUSS SAYS A US TRADE OFFICIAL WITH JAPAN'S PRIME MINISTER DUE IN WASHINGTON NEXT MONTH TO TALK ABOUT A 50 BILLION TRADE SURPLUS WITH THE US GLASS IS ONE TOPIC PRESIDENT CLINTON HIMSELF MAY FIND WORTH MENTIONING 9303190076 930319 HOUSE BACKS BILL TO MAKE AUDITORS FRAUD WATCHDOGS WASHINGTON A HOUSE PANEL APPROVED A BILL DESIGNED TO INSTALL THE ACCOUNTING PROFESSION AS A FRONTLINE DEFENSE AGAINST FINANCIAL FRAUD THE BILL WOULD REQUIRE ACCOUNTANTS TO SEEK OUT FRAUD WHEN AUDITING COMPANIES' FINANCIAL STATEMENTS AND TO REPORT SUSPECTED WRONGDOING PROMPTLY TO THE SECURITIES AND EXCHANGE COMMISSION THE INITIATIVE COMES IN RESPONSE TO A SERIES OF FINANCIAL FRAUDS THAT UNFOLDED AFTER AUDITORS HAD DELIVERED CLEAN OPINIONS ON THE FINANCIAL STATEMENTS OF THE COMPANIES INVOLVED THE MEASURE CLEARED BY THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE BY VOICE VOTE APPEARS TO ENJOY MUCH BETTER PROSPECTS THAN PREVIOUS SUCH EFFORTS BY VIRTUE OF AN 11THHOUR ENDORSEMENT BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS THE TRADE GROUP ENDORSED THE BILL AFTER AN ACCORD WAS STRUCK ON LEGISLATIVE LANGUAGE SAYING THE PRIVATE SECTORS SHOULD HAVE THE PRINCIPAL RESPONSIBILITY FOR SETTING ACCOUNTING STANDARDS BUT THAT THE SEC SHOULD BE ABLE TO INTERVENE AND MODIFY THOSE STANDARDS WHEN SUCH ACTION IS IN THE PUBLIC INTEREST