NEW YORK A GROUP OF CONSERVATIVE BUSINESS PEOPLE IS CONSIDERING A BID FOR THE NEW YORK POST THE GROUP INCLUDING COSMETICS HEIR RONALD LAUDER MET LAST NIGHT TO CONSIDER WHETHER TO PUMP IN THE ESTIMATED 30 MILLION TO 40 MILLION THE POST IS EXPECTED TO NEED TO PAY BILLS AND OPERATE PROFITABLY THE GROUP EMERGED AFTER A LOOSE CONSORTIUM OF POTENTIAL BUYERS FORMED BY NEW YORK GOV MARIO CUOMO FELL APART MR LAUDER A MEMBER OF THE BOARD OF ESTEE LAUDER INC IS BEING JOINED BY RICHARD GILDER JR HEAD OF THE BROKERAGE FIRM GILDER GAGNON & HOWE AND DUSTY RHODES PRESIDENT OF CONSERVATIVE MAGAZINE NATIONAL REVIEW A SPOKESMAN FOR MR LAUDER SAID LAST NIGHT THE THREE MEN REMAIN VERY INTERESTED IN THE POST IF IT MAKES GOOD FINANCIAL SENSE THEY ARE INTERESTED IN PROCEEDING WITH AN EFFORT TO ACQUIRE OWNERSHIP OF THE POST THE GROUP MET LAST NIGHT TO DISCUSS WHETHER TO GO AHEAD WITH THE BID A SPOKESMAN SAID IT IS UNCLEAR WHETHER MR LAUDER'S GROUP WILL APPEAR TODAY AT A HEARING IN US BANKRUPTCY COURT WHERE THE PAPER'S RECEIVABLES AND APPROVAL OF A MANAGEMENT AGREEMENT FROM A POTENTIAL NEW OWNER ARE EXPECTED TO BE DISCUSSED ULTIMATE OWNERSHIP OF THE PAPER IS NOT EXPECTED TO BE CONSIDERED TODAY THE PAPER CURRENTLY OWNED BY REAL ESTATE DEVELOPER PETER KALIKOW EARLIER IN THE WEEK FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION 9303190073 930319 WHO'S NEWS TIME WARNER NOMINATES FOUR AS OUTSIDE DIRECTORS NEW YORK TIME WARNER INC NOMINATED FOUR OUTSIDE DIRECTORS PUTTING THE STAMP OF GERALD M LEVIN CHAIRMAN AND CHIEF EXECUTIVE ON THE BOARD AFTER THE DEATH OF STEVEN J ROSS THE MOVE CULMINATES A BOARD REVAMPING THAT WAS INSTIGATED LAST YEAR BY INSTITUTIONAL INVESTORS TO REDUCE THE INFLUENCE OF INSIDERS ON THE BOARD THE RESTRUCTURING ACCELERATED IN DECEMBER AFTER THE DEATH OF THE LATE CHAIRMAN AND COCHIEF EXECUTIVE MR ROSS WHEN THE BOARD WAS SLASHED TO 15 FROM 24 ONLY 11 OF THOSE POSITIONS WERE FILLED AS THE COMPANY SEARCHED FOR OUTSIDE DIRECTORS AND MR LEVIN PROCEEDED TO FURTHER ENSURE HIS COMMAND OF THE MEDIA CONGLOMERATE TIME WARNER NOMINATED FOUR LEADERS FROM GOVERNMENT AND CORPORATE AMERICA AMONG THEM CARLA A HILLS 59 YEARS OLD FORMER US TRADE REPRESENTATIVE IN THE BUSH ADMINISTRATION AND DAVID T KEARNS 62 RETIRED CHAIRMAN AND CHIEF EXECUTIVE OF XEROX CORP AND A FORMER DEPUTY SECRETARY OF THE EDUCATION DEPARTMENT ALSO NOMINATED WERE COLGATEPALMOLIVE CO'S CHAIRMAN AND CHIEF EXECUTIVE REUBEN MARK 54 WHO IS ACTIVE IN SUPPORTING EDUCATION IN NEW YORK CITY AND FORMER MAJOR LEAGUE BASEBALL COMMISSIONER FRANCIS T VINCENT ALSO 54 AND A FORMER EXECUTIVE WITH COCACOLA CO AND COLUMBIA PICTURES INDUSTRIES INC THE NOMINEES ARE UP FOR ELECTION AT TIME WARNER'S ANNUAL SHAREHOLDER MEETING MAY 20 A SPOKESMAN SAID THAT LAST YEAR BOARD MEMBERS WERE PAID 60000 EACH HALF OF IT IN TIME WARNER STOCK 9303190072 930319 AMEX TAKES DISCIPLINARY ACTIONS NEW YORK THE AMERICAN STOCK EXCHANGE ANNOUNCED DISCIPLINARY ACTIONS AGAINST TWO INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES MICHAEL BRADLEY STATEN ISLAND NY A FORMER EMPLOYEE OF RAYMOND JAMES & ASSOCIATES INC WAS BARRED FOR ONE YEAR FOR MISAPPROPRIATING FUNDS THE AMEX SAID THE ONEYEAR PERIOD IS DEEMED SERVED MR BRADLEY SETTLED WITHOUT ADMITTING OR DENYING THE EXCHANGE'S FINDINGS THOMAS E SEARS III DALLAS AN EMPLOYEE OF EPPLER GUERIN & TURNER INC WAS SUSPENDED FOR TWO WEEKS HE DIDN'T ADMIT OR DENY FINDINGS THAT HE RECOMMENDED OPTIONS TRANSACTIONS WHICH WERE UNSUITABLE FOR A CUSTOMER NEITHER INDIVIDUAL COULD BE REACHED FOR COMMENT 9303190071 930319 OTC FOCUS HEALTH CARE TECHNOLOGY ISSUES RESTRAIN NASDAQ MARKET DESPITE BIG BOARD SURGE BY DAVE PETTIT AND CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK MORE WEAKNESS IN HEALTH CARE AND TECHNOLOGY STOCKS KEPT THE OVERTHECOUNTER MARKET IN CHECK EVEN AS BIG BOARD SHARES SOARED BUT AS THE NASDAQ INDEX SPUN ITS WHEELS THE DOW JONES INDUSTRIAL AVERAGE ROCKETED 3890 POINTS OR 114 TO 346564 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADVANCED 179 OR 072 TO 24912 OBSERVERS TIED THE GLARING DISPARITY TO THE MAKEUP OF THE TWO MARKETS WHILE NASDAQ IS DOMINATED BY LAGGING TECHNOLOGY AND HEALTH CARE ISSUES THE BIG BOARD IS MORE HEAVILY INFLUENCED BY CYCLICALS WHICH WERE LEADERS YESTERDAY SO WHILE THE NEW YORK STOCK EXCHANGE'S MOSTACTIVE LIST INCLUDED SUCH ECONOMICALLY SENSITIVE SHARES AS FORD MOTOR WHICH ROSE 2 7/8 THE NASDAQ LIST WAS STUDDED WITH SUCH DECLINERS AS TOKOS MEDICAL WHICH LOST 1 3/4 TO 6 3/4 AND SCIMED LIFE SYSTEMS WHICH FELL 3 3/4 TO 38 1/4 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME EASED TO 194826900 SHARES FROM 203822400 SHARES ON WEDNESDAY OBSERVERS TIED THE WEAKNESS IN HEALTH CARE STOCKS TO WORRIES ABOUT THE CLINTON ADMINISTRATION'S PENDING INDUSTRY REFORM INITIATIVE EVEN THOUGH MANY MEDICAL SHARES HAVE ALREADY BEEN PUMMELED GEORGE BROWN A NASDAQ TRADER AT KIDDER PEABODY & CO SAID INVESTORS STILL AREN'T WILLING TO BET THAT THE SELLING IS OVER THE DROP IN TECHNOLOGY SHARES IS TOUGHER TO EXPLAIN ALTHOUGH SOME MEMBERS OF THE GROUP MANAGED GAINS YESTERDAY INCLUDING INTEL WHICH ROSE ONE TO 115 3/4 MANY OTHERS WERE LOWER PARTICULARLY IN THE COMPUTER NETWORKING ARENA YOU WOULD THINK THERE WOULD BE A LITTLE TECHNICAL BOUNCE IN SOME OF THESE BUT IT JUST DOESN'T SEEM TO BE THERE MR BROWN SAID ALFRED GOLDMAN DIRECTOR OF TECHNICAL ANALYSIS AT AG EDWARDS & SONS SAID THE WEAKNESS IN NASDAQ STOCKS IS STILL TIED TO THE SMALLSTOCK MARKET'S HUGE RALLY AT THE END OF LAST YEAR AFTER OUTPERFORMING THE LARGE STOCK MARKET THEN INVESTORS SHOULD EXPECT UNDERPERFORMANCE NOW HE SAID I JUST THINK IT'S A NORMAL TIMEOUT THE NASDAQ MARKET HAD A BIG RUN I WOULDN'T THROW IN THE TOWEL ON SMALL STOCKS YET MR GOLDMAN SAID TOKOS MEDICAL FELL AFTER THE COMPANY SAID IT EXPECTS REVENUE TO SLIDE IN THE FIRST QUARTER FROM A YEAR EARLIER THE SANTA ANA CALIF HOME HEALTH CARE SERVICES PROVIDER PARTLY BLAMED LOWERTHANEXPECTED SALES AT ITS CARELINK UNIT SCIMED LIFE SYSTEMS TUMBLED AFTER PIPER JAFFRAY ANALYST EDWARD MUTSCH DOWNGRADED HIS RATING ON THE STOCK TO ACCUMULATE FROM BUY HE CITED CONCERN ABOUT LITIGATION INVOLVING THE MAPLE GROVE MINN MEDICAL DEVICE MAKER AS WELL AS WORRIES ABOUT HEALTH CARE REFORM GRIST MILL FELL 7/8 TO 13 THE LAKEVILLE MINN FOOD CONCERN POSTED EARNINGS OF NINE CENTS A SHARE FOR THE THIRD QUARTER ENDED LAST MONTH UP FROM EIGHT CENTS A YEAR EARLIER BUT BELOW THE 10 CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM COMMUNICATIONS SYSTEMS SKIDDED 1 1/2 TO 19 3/4 AFTER IT PROJECTED FLAT TO SLIGHTLY HIGHER FIRSTQUARTER EARNINGS IT SAID REVENUE FOR THE PERIOD WILL BE DOWN SOMEWHAT A YEAR EARLIER THE HECTOR MINN MANUFACTURER OF TELEPHONE EQUIPMENT RECORDED A PROFIT OF 27 CENTS A SHARE ON REVENUES OF 135 MILLION BEAUTICONTROL COSMETICS EASED 5/8 TO 8 7/8 THE CARROLLTON TEXAS COSMETICS AND SKIN CARE PRODUCTS COMPANY SAID ITS FIRSTQUARTER EARNINGS FELL TO FOUR CENTS A SHARE FROM 19 CENTS A YEAR EARLIER FIRST PACIFIC NETWORKS ROSE 5 3/8 TO 26 1/2 AFTER SOUTHERN CO AGREED TO BUY A 995 STAKE IN THE SUNNYVALE CALIFBASED DEVELOPER OF TELECOMMUNICATIONS TECHNOLOGY AND TEST ITS ENERGYMANAGEMENT TECHNOLOGY IN SOUTHERN'S SERVICE TERRITORY 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 9303190070 930319 YOUR MONEY MATTERS WEEKEND REPORT WAIT DON'T WRITE THAT MUTUALFUND CHECK BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU THINK IT'S PERILOUS TO OWN A MUTUAL FUND YOU SHOULD TRY SELLING ONE FIGURING OUT YOUR TAX BILL WHEN YOU SELL A FUND IS NOTORIOUSLY TRICKY ESPECIALLY IF YOU DISPOSE OF YOUR FUND SHAREHOLDINGS BIT BY BIT YET SOME MUTUALFUND COMPANIES OFFER SPECIAL SERVICES THAT ENCOURAGE INVESTORS TO DO JUST THAT MANY FUND COMPANIES FOR INSTANCE ALLOW SHAREHOLDERS TO WRITE CHECKS AGAINST THEIR BONDFUND HOLDINGS EVERY TIME INVESTORS WRITE A CHECK THEY ARE EFFECTIVELY TAKING A CAPITAL GAIN OR LOSS WHICH THEY THEN HAVE TO REPORT ON THEIR TAX RETURN ANYBODY WHO DOES THAT IS OUT OF THEIR MIND SAYS KURT BROUWER PRESIDENT OF BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISER IF YOU WRITE TWO OR THREE CHECKS A MONTH AGAINST A GINNIE MAE FUND YOU HAVE TWO OR THREE TAXABLE EVENTS EVERY MONTH FUND INVESTOR RICHARD FICHTEL OWNS SOME OF VANGUARD GROUP'S BOND FUNDS BUT HIS CONCERN ABOUT A TAX NIGHTMARE STOPS HIM FROM WRITING TOO MANY CHECKS AGAINST HIS FUND HOLDINGS I'M VERY COGNIZANT OF THE TAX IMPACT SO WE DON'T REDEEM A LOT SAYS MR FICHTEL WHO WORKS FOR INGERSOLLRAND CO IN WOODCLIFF LAKE NJ I WRITE MAYBE ONE OR TWO CHECKS A YEAR WRITING FREQUENT CHECKS ISN'T THE ONLY TAX PITFALL THAT FACES FUND INVESTORS FUND GROUPS ALSO OFFER SOCALLED AUTOMATIC EXCHANGE PROGRAMS AND AUTOMATIC WITHDRAWAL PLANS THESE PROGRAMS CAN INVOLVE SELLING SHARES EVERY MONTH WHICH MEANS YOU CAN FINISH THE YEAR WITH CAPITAL GAINS OR LOSSES ON 12 SEPARATE TRANSACTIONS THAT HAVE TO BE ACCOUNTED FOR ON YOUR TAX RETURN DOING A LOT OF BUYING AND SELLING ISN'T AN ISSUE WITH MONEYMARKET FUNDS MONEY FUNDS SEEK TO MAINTAIN A STABLE 1 SHARE PRICE SO YOU DON'T GENERATE ANY CAPITAL GAINS OR LOSSES WHEN YOU SELL FUND SHARES BUT WITH STOCK AND BOND FUNDS WHICH FLUCTUATE IN SHARE PRICE EVERY SALE CREATES ADDITIONAL ACCOUNTING HEADACHES AS A RESULT MANY TAXSMART INVESTORS TRY TO KEEP THEIR STOCK AND BONDFUND SALES TO A BARE MINIMUM WHEN THEY DO SELL THEY TRY TO SELL THEIR FUND HOLDINGS IN ONE FELL SWOOP IF YOU FOLLOW THAT STRATEGY IT BECOMES RELATIVELY EASY TO FIGURE OUT YOUR CAPITAL GAINS AND LOSSES ALL YOU HAVE TO DO IS COMPARE THE PROCEEDS FROM A SALE WITH THE AMOUNT YOU INVESTED IN THE FUND THE AMOUNT INVESTED IS CALCULATED BY ADDING TOGETHER THE INITIAL INVESTMENT ANY SUBSEQUENT INVESTMENTS AND ANY CAPITAL GAINS AND INCOME DISTRIBUTIONS THAT WERE REINVESTED IN ADDITIONAL FUND SHARES DOING YOUR TAXES ISN'T NEARLY SO SIMPLE IF YOU SELL YOUR FUND HOLDINGS IN DRIBS AND DRABS IF YOU MAKE A PARTIAL SALE YOU HAVE TO CHOOSE FROM FOUR DIFFERENT METHODS TO ACCOUNT FOR THE GAIN OR LOSS YOU CAN FOR INSTANCE USE THE SINGLECATEGORY AVERAGECOST METHOD WITH THIS METHOD YOU DIVIDE THE TOTAL AMOUNT INVESTED IN THE FUND BY THE NUMBER OF SHARES OWNED THEREBY GETTING AN AVERAGE COST PER SHARE TO GET YOUR COST BASIS YOU THEN MULTIPLY THE NUMBER OF SHARES SOLD BY THIS AVERAGE COST PER SHARE BUT UNFORTUNATELY THAT IS ONLY THE BEGINNING ONCE YOU HAVE MADE AN INITIAL SALE OF PART OF YOUR FUND HOLDINGS IT CAN GET EVEN MORE COMPLEX WHEN ACCOUNTING FOR SUBSEQUENT SALES WITH THESE SUBSEQUENT SALES YOU HAVE TO TAKE INTO ACCOUNT NOT ONLY ALL OF YOUR FUND PURCHASES BUT ALSO YOUR EARLIER FUND SALES BECAUSE OF CONCERNS ABOUT CREATING TAX HASSLES FOR INVESTORS FRANKLIN RESOURCES DOESN'T ALLOW SHAREHOLDERS TO WRITE CHECKS AGAINST THE COMPANY'S BOND FUNDS I THINK INVESTORS ARE BETTER OFF WITHOUT CHECKWRITING PRIVILEGES SAYS GREGORY JOHNSON A MARKETING VICE PRESIDENT AT FRANKLIN THE COUNTRY'S FOURTH LARGEST FUND GROUP FROM A TAX PERSPECTIVE YOU DON'T WANT TO RECOGNIZE GAINS AND LOSSES BASED ON YOUR SHORTTERM CASH NEEDS BEFORE SIGNING UP FOR CHECKWRITING PRIVILEGES OR AN AUTOMATIC WITHDRAWAL OR EXCHANGE PROGRAM YOU MAY WANT TO CHECK TO SEE WHETHER THE FUND COMPANY WILL CALCULATE CAPITAL GAINS OR LOSSES FOR YOU SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER IF THEY CAN GIVE YOU A PRICE IN AND A PRICE OUT THEN IT SEEMS LIKE A WONDERFUL SERVICE HE SAYS BUT IF THEY DON'T YOU BETTER KNOW WHAT YOU'RE GETTING INTO SOME 20 FUND COMPANIES INCLUDING COLONIAL MUTUAL FUNDS T ROWE PRICE ASSOCIATES SCUDDER STEVENS & CLARK AND VANGUARD GROUP NOW PROVIDE SHAREHOLDERS WITH INFORMATION ON THE GAIN OR LOSS INCURRED WHEN SHARES ARE SOLD THESE COMPANIES USE THE AVERAGECOST METHOD TO CALCULATE A SHAREHOLDER'S TAX LIABILITY FUND INDUSTRY EXECUTIVES EXPECT THAT CONGRESS EVENTUALLY WILL PASS LEGISLATION FORCING ALL FUNDGROUPS TO PROVIDE THIS INFORMATION ONE FUND COMPANY THAT DOESN'T YET PROVIDE COST BASIS INFORMATION IS TWENTIETH CENTURY INVESTORS OF KANSAS CITY MO THAT INFORMATION WOULD BE INVALUABLE FOR PARTICIPANTS IN THE FUND GROUP'S COLLEGE INVESTMENT PROGRAM WHICH INVOLVES FREQUENT FUND SALES UNDER THE PROGRAM PARENTS REGULARLY INVEST IN TWENTIETH CENTURY SELECT INVESTORS ONE OF THE FUND GROUP'S TOPPERFORMING GROWTHSTOCK FUNDS DURING THE FINAL FOUR FIVE OR SIX YEARS BEFORE THE CHILD ENTERS COLLEGE MONEY IS GRADUALLY MOVED FROM SELECT TO THE FUND COMPANY'S MONEYMARKET FUND DURING THIS PERIOD FUND SHARES ARE SOLD EVERY OTHER MONTH IF THE STOCK MARKET TAKES A DIVE NO SELECT SHARES ARE SOLD WHEN IT COMES TIME FOR THE REGULAR SALE INSTEAD MONEY MIGHT BE TRANSFERRED BACK TO SELECT FROM THE MONEYMARKET FUND THAT'S GOT TO BE AN ABSOLUTE TAX NIGHTMARE SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER IT SOUNDS LIKE A GREAT PROGRAM BUT IT DOESN'T WORK IN PRACTICALITY ANY PROFITS YOU MAKE YOU'LL PAY TO YOUR ACCOUNTANT A SPOKESMAN FOR TWENTIETH CENTURY NOTES THAT WE MAKE IT CLEAR UPFRONT THAT THAT'S SOMETHING INVESTORS WILL HAVE TO DEAL WITH HE SAYS THAT BY THE TIME MANY INVESTORS IN THE COLLEGE INVESTMENT PROGRAM START TO MAKE REGULAR FUND SALES THE FUND COMPANY MAY BE PROVIDING COSTBASIS INFORMATION TO AVOID TAX HASSLES THE BEST SOLUTION IS TO KEEP GOOD RECORDS AND AVOID FREQUENT SELLING SAYS MR PERRITT BUT WHAT IF YOU DO GET YOURSELF INTO A TAX MESS AND CAN'T FIGURE OUT YOUR COST BASIS MR PERRITT SUGGESTS A SOLUTION THAT ISN'T FOUND IN THE MUTUALFUND TAX GUIDES OR APPROVED BY THE INTERNAL REVENUE SERVICE YOU END DOING WHAT WE ALL DO YOU GUESS IF YOU CAN'T FIGURE OUT WHAT THE COST BASIS IS AND YOUR ACCOUNTANT CAN'T FIGURE IT OUT AND THE MUTUAL FUND CAN'T TELL YOU THEN HOW THE HELL IS THE IRS GOING TO FIND OUT TO CUT DOWN ON MUTUALFUND TAX HASSLES FUND EXPERTS SUGGEST THE FOLLOWING STRATEGIES IF YOU SELL A STOCK OR BOND FUND SELL ALL FUND SHARES IN A SINGLE TRANSACTION WRITE CHECKS AGAINST YOUR MONEYMARKET FUND NOT YOUR BOND FUND IF YOU PLAN TO TRADE FUNDS ACTIVELY CONSIDER BUYING AND SELLING IN A RETIREMENT ACCOUNT WHERE THE TRADES AREN'T TAXABLE IF YOU NEED INCOME FROM YOUR STOCK AND BOND FUNDS TAKE YOUR CAPITAL GAINS AND INCOME DISTRIBUTIONS IN CASH OR HAVE THEM DIRECTED INTO A MONEYMARKET FUND THIS WILL REDUCE THE NEED TO MAKE FUND SALES AND ALSO MAKE IT EASIER TO FIGURE OUT YOUR TAXES WHEN YOU SELL FUND SHARES RETIREES WHO REGULARLY SELL STOCK AND BONDFUND SHARES TO GENERATE SPENDING MONEY SHOULD SELL SHARES JUST ONCE A YEAR AND MOVE THE PROCEEDS TO A MONEYMARKET FUND THEY THEN CAN WRITE FREQUENT CHECKS AGAINST THEIR MONEY FUND WITHOUT WORRYING ABOUT THE TAX CONSEQUENCES PARENTS WHO ARE SAVING FOR A CHILD'S FOURYEAR COLLEGE EDUCATION SHOULD SET UP FOUR FUNDS TO COVER EACH YEAR'S COLLEGE EXPENSES PARENTS SELL ONE FUND THEREBY AVOIDING THE HASSLES THAT RESULT FROM SELLING FUND HOLDINGS IN DRIBS AND DRABS DON'T BUY TOO MANY FUNDS BECAUSE THE MORE YOU BUY THE MORE YOU EVENTUALLY HAVE TO SELL 9303190069 930319 REP STARK TAKES AIM AT MAXXAM UNIT'S USE OF TREES AS COLLATERAL SAN FRANCISCO CONGRESSMAN PETE STARK HAS TAKEN DIRECT AIM AT CHARLES HURWITZ'S PLAN TO REFINANCE 510 MILLION OF PACIFIC LUMBER CO'S JUNK BONDS BY SELLING NEW NOTES COLLATERALIZED BY THE COMPANY'S TOWERING REDWOODS AND DOUGLAS FIRS DEMOCRATIC REP STARK OF CALIFORNIA INTRODUCED LEGISLATION THAT WOULD SLAP A 75 SEVERANCE TAX ON OLDGROWTH REDWOOD TREES THE LEGISLATION ALSO PROPOSES A 75 TAX ON ANY REDWOODS CUT TO MEET PAYMENTS ON SOCALLED TIMBERCOLLATERALIZED NOTES THE LEGISLATION IS AIMED SQUARELY AT MR HURWITZ THE TEXAS FINANCIER WHOSE MAXXAM INC ACQUIRED PACIFIC LUMBER IN A CONTROVERSIAL TAKEOVER IN 1986 IS ATTEMPTING TO REFINANCE THE JUNK BONDS USED IN THE ACQUISITION BY SELLING 235 MILLION OF NOTES IN PACIFIC LUMBER AND AN ADDITIONAL 385 MILLION OF TIMBERCOLLATERALIZED NOTES THAT TIMBERCOLLATERALIZED NOTES HAVE BEEN ATTACKED BY ENVIRONMENTALISTS WHO ARGUE THEY WILL FORCE PACIFIC LUMBER TO MAINTAIN A HIGH LEVEL OF CUTTING ON ITS LANDS IN ORDER TO MEET PAYMENTS ON THE BONDS PACIFIC LUMBER AND MR HURWITZ ALREADY ARE LOATHED BY MANY ENVIRONMENTALISTS BECAUSE THE PACE OF THE COMPANY'S LOGGING DOUBLED AFTER MR HURWITZ TOOK CONTROL IN A STATEMENT REP STARK DECRIED MR HURWITZ'S LOOTING OF PACIFIC LUMBER'S TIMBERLANDS AND SAID THAT TIMBER HARVESTING DICTATED BY BOND PAYMENT SCHEDULES COULD BE LIKE KILLING THE GOLDEN GOOSE A MAXXAM SPOKESMAN DECLINED TO COMMENT ON THE PROPOSED LEGISLATION 9303190068 930319 TECHNOLOGY & MEDICINE FDA PANEL CLEARS DRUG FOR ALZHEIMER'S BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON ITS THIRD TRY WARNERLAMBERT CO HAS WON A FAVORABLE RECOMMENDATION FROM A FOOD AND DRUG ADMINISTRATION ADVISORY COMMITTEE FOR ITS ALZHEIMER'S DRUG COGNEX AT A DAYLONG MEETING YESTERDAY THE PANEL VOTED 100 TO RECOMMEND THAT THE FDA APPROVE THE DRUG FOR TREATING SYMPTOMS OF THE MINDROBBING DISEASE WHICH AFFLICTS ABOUT FOUR MILLION AMERICANS FDA OFFICIALS SAID APPROVAL BY THE AGENCY COULD OCCUR WITHIN AS SHORT A TIME AS A MONTH AND A HALF IF APPROVED IT WOULD BE THE FIRST TIME THE GOVERNMENT HAS GIVEN THE NOD FOR A DRUG TO TREAT ALZHEIMER'S THE SPEED WITH WHICH THE AGENCY IS MOVING TO REVIEW THE COMPANY'S APPLICATION REFLECTS FDA COMMISSIONER DAVID KESSLER'S PLEDGE TO EVALUATE DRUGS FOR ALZHEIMER'S WITH THE SAME URGENCY IT GIVES TO DRUGS FOR CANCER AND AIDS ONE OF THE STUDIES THAT THE PANEL EVALUATED YESTERDAY WAS JUST COMPLETED IN JANUARY AT A NEWS CONFERENCE FDA OFFICIALS PROMISED THAT ADDITIONAL ALZHEIMER'S DRUGS IN THE PIPELINE WOULD GET SIMILAR TREATMENT WE'RE AGGRESSIVELY WORKING WITH SPONSORS TO DEVELOP NEW DRUGS SAID CARL PECK DIRECTOR OF THE AGENCY'S CENTER FOR DRUG EVALUATION AND RESEARCH WE HAVE REVVED UP OUR REVIEW STAFF THE RECOMMENDATION BY THE AGENCY'S PERIPHERAL AND CENTRAL NERVOUS SYSTEM DRUGS ADVISORY COMMITTEE WAS A COUP FOR WARNERLAMBERT'S PARKE DAVIS DIVISION WHICH WAS TURNED DOWN TWICE BY THE PANEL IN 1991 AT THAT TIME THE COMMITTEE SAID THAT CLINICAL STUDIES OF THE DRUG FAILED TO SHOW IT PROVIDED A BENEFIT THAT OUTWEIGHED POSSIBLE HEALTH RISKS IN ITS LATEST BID THE COMPANY PRESENTED EVIDENCE FROM TWO NEW STUDIES THE COMMITTEE DETERMINED THESE STUDIES DEMONSTRATED THAT THE DRUG PROVIDES A SIGNIFICANT IF SMALL BENEFIT NOR DOES IT CAUSE SERIOUS ADVERSE EFFECTS AMONG OTHER POINTS AN INCREASE IN LIVER ENZYMES THAT HAD APPEARED WORRISOME IN THE EARLIER STUDIES NOW SEEMED MANAGEABLE SUCH A RISE CAN INDICATE POTENTIAL LIVER DAMAGE AT THE SAME TIME THE EXPERTS SPENT MUCH OF THE DAY AGONIZING OVER THE MODEST BENEFITS OF THE MEDICATION THE DRUG WHICH IS DESIGNED TO TREAT MILDTOMODERATE SYMPTOMS OF THE ILLNESS DOESN'T AFFECT THE OVERALL PROGRESSION OF THE DISEASE MOREOVER THE STUDIES DIDN'T SHOW HOPEDFOR DRAMATIC IMPROVEMENTS IN PATIENTS THE FINAL VOTE HOWEVER PARTLY REFLECTED A DESIRE TO GIVE PATIENTS EVERY CHANCE POSSIBLE I CAN'T THINK OF WHY SOMEONE DOESN'T AT LEAST HAVE THE CHANCE TO GO DOWN KICKING SAID DENNIS CHOI OF WASHINGTON UNIVERSITY ST LOUIS WARNERLAMBERT HASN'T YET ANNOUNCED HOW MUCH IT WILL CHARGE FOR THE DRUG IF IT'S APPROVED UNDER A SPECIAL PROGRAM IN EFFECT SINCE LATE1991 THE COMPANY HAS BEEN SUPPLYING THE DRUG TO ABOUT 6000 PATIENTS FOR 3 A DAY 9303190067 930319 PABST PEARL SUE TO BLOCK MILLER SAN ANTONIO AP TWO BREWERS HAVE SUED TO BLOCK MILLER BREWING CO FROM ACQUIRING MOLSON USA SAYING THE PURCHASE WOULD CEMENT A TREND TOWARD MONOPOLIZATION OF THE US BEER MARKET PABST BREWING CO OF MILWAUKEE AND PEARL BREWING CO OF SAN ANTONIO ARE ALSO SEEKING TO PREVENT MILLER FROM BUYING 20 OF MOLSON BREWERIES OF CANADA ACCORDING TO AN ANTITRUST LAWSUIT FILED WEDNESDAY IN FEDERAL COURT AMONG OTHER DEFENDANTS NAMED IN THE SUIT IS MILLER'S PARENT COMPANY PHILIP MORRIS COS MILLER SAID THE TRANSACTION WHICH IT PLANS TO CONCLUDE ON APRIL 3 IS IN ACCORDANCE WITH ANTITRUST LAWS THE SUIT CLAIMS THAT BY BUYING MOLSON A UNIT OF MOLSON COS WHICH DISTRIBUTES MOLSON MILLER PABST AND PEARL MILLER WOULD UNFAIRLY PROMOTE ITS BRANDS OVER OTHER BEERS 9303190066 930319 TOWERS FINANCIAL OVERVALUED ASSETS AN AUDIT DISCLOSES BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A PRELIMINARY AUDIT BY A COURTAPPOINTED TRUSTEE INTO THE OPERATIONS OF TOWERS FINANCIAL CORP A HUGE DEBT COLLECTION AND FACTORING CONCERN PAINTS A PICTURE OF A GROSSLY MISMANAGED FIRM THAT HAS SIGNIFICANTLY OVERVALUED ITS ASSETS THE AUDIT BY JESS FARDELLA A FORMER FEDERAL PROSECUTOR CAME AS A RESULT OF A LAWSUIT FILED AGAINST TOWERS AND ITS OWNER STEVEN HOFFENBERG BY THE SECURITIES AND EXCHANGE COMMISSION ALLEGING THAT THE COMPANY CAN'T BACK MORE THAN 400 MILLION IN SECURITIES BOUGHT BY INVESTORS AROUND THE COUNTRY MR FARDELLA'S AUDIT RAISES THE POSSIBILITY THAT TOWERS SPENT INVESTOR MONEY ON LARGE SALARIES CONSULTING FEES A YACHT AND CORPORATE JET AMONG OTHER THINGS RATHER THAN BUYING INCOMEPRODUCING ACCOUNTS RECEIVABLE THE ASSETS THAT WOULD SUPPORT TOWERS'S OPERATION IN FACT FROM MORE THAN 200 MILLION IN UNREGISTERED NOTES SOLD TO INVESTORS THE AUDIT CAN FIND ONLY 4 MILLION ACTUALLY SPENT ON ACCOUNTS RECEIVABLE MR FARDELLA SAID THE AUDIT FILED WITH US DISTRICT JUDGE WHITMAN KNAPP IS ONLY A PRELIMINARY LOOK AT THE BOOKKEEPING PRACTICES OF TOWERS AND THE WORTH OF ITS ASSETS BUT IN ALL THAT THEY HAVE LOOKED AT SO FAR MR FARDELLA AND HIS ACCOUNTING TEAM HAVE FOUND SERIOUS INADEQUACIES IN TOWERS'S FINANCIAL PRACTICES BECAUSE OF THAT HE SAID THE SITUATION MUST QUICKLY BE RECTIFED IF TOWERS IS TO CONTINUE IN SOME FORM MR FARDELLA SAID HE HAS YET TO LOOK AT THE BOOKS OF TOWERS'S HEALTHCARE BILLING SUBSIDIARY WHICH IS BEING AUDITED BY AN ACCOUNTING FIRM HIRED BY SHAWMUT BANK SHAWMUT A UNIT OF SHAWMUT NATIONAL CORP AND THE TRUSTEE FOR 200 MILLION IN BONDS ISSUED BY THE TOWERS SUBSIDIARY ALSO HAS FILED A LAWSUIT AGAINST TOWERS MR FARDELLA'S REPORT FOCUSES ON THE COMMERCIAL DEBT COLLECTION SIDE OF TOWERS'S BUSINESS LEAVING OPEN THE POSSIBILITY THAT ITS HEALTHCARE SUBSIDIARY MAY BE STRONGER MR FARDELLA SAID IN THE REPORT THAT SEVERAL INVESTORS HAD CONTACTED HIM ABOUT POSSIBLY BUYING THE HEALTHCARE SUBSIDIARY MR HOFFENBERG WHO HAS BEEN INVOLVED IN AN ALLOUT FIGHT TO CONTROL THE NEW YORK POST SAID HE WANTS TO SELL TOWERS MR FARDELLA'S REPORT IS ALSO CRITICAL OF SALARIES AND PERQUISITES PAID BY TOWERS TO MR HOFFENBERG AND OTHER OFFICERS ACCORDING TO THE REPORT MR HOFFENBERG WAS PAID NEARLY 17 MILLION LAST YEAR MORE THAN THREE TIMES HIS PREVIOUS YEAR'S SALARY AND A CORPORATION THROUGH WHICH HE CONTROLS TOWERS STOCK WAS GIVEN 16 MILLION THE REPORT ALSO SAID TOWERS ATTEMPTED TO MAKE PAYMENTS TO A HOSPITAL AND A NURSING HOME OWNED BY MR HOFFENBERG ALLEGEDLY IN VIOLATION OF SEC SPENDING CONTROLS AGREED TO BY TOWERS THE SEC HAS SAID IT NEEDS TO PROTECT THE INTERESTS OF THE TOWERS DEBT INVESTORS IRA LEE SORKIN THE ATTORNEY FOR MR HOFFENBERG AND TOWERS SAID THEY COULDN'T COMMENT ON THE AUDIT BECAUSE THEY HAVEN'T READ IT OR ANALYZED IT 9303190065 930319 BUSINESS BRIEF EARTH TECHNOLOGY CORP FIRM EXPECTS TO POST A PROFIT FOR QUARTER ENDED FEB 26 EARTH TECHNOLOGY CORP EXPECTS TO POST NET INCOME OF BETWEEN 380000 AND 430000 OR 12 CENTS TO 14 CENTS A SHARE FOR ITS SECOND QUARTER ENDED FEB 26 CREIGHTON EARLY CHIEF FINANCIAL OFFICER SAID THAT COMPARES WITH A NET LOSS OF 638000 OR 22 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE FOR THE LATEST QUARTER ROSE TO AROUND 155 MILLION FROM 117 MILLION MR EARLY SAID IN AN INTERVIEW IN LONG BEACH CALIF FOR THE SIX MONTHS THE COMPANY WILL POST NET INCOME OF BETWEEN 750000 AND 800000 OR 24 CENTS TO 26 CENTS A SHARE ON REVENUE OF ABOUT 30 MILLION HE SAID FOR THE FIRST SIX MONTHS OF FISCAL 1992 IT HAD A NET LOSS OF 576000 OR 19 CENTS A SHARE ON REVENUE OF 257 MILLION DIANE CREEL RECENTLY PROMOTED TO CHIEF EXECUTIVE OFFICER SAID THE RETURN TO PROFITABILITY REFLECTS THE SUCCESS OF THE COMPANY'S BACKTOBASICS STRATEGY FOCUSING ON ITS CORE GOVERNMENT AND COMMERCIAL HAZARDOUSWASTE CONSULTING BUSINESSES THE COMPANY FLOUNDERED IN RECENT YEARS WHEN ITS DIVERSIFICATION EFFORTS SOURED AS THE RECESSION HIT 9303190064 930319 CREDIT MARKETS PRICES OF TREASURY NOTES BONDS SOAR AS INVESTORS SHAKE OFF RECENT WORRIES ABOUT INFLATION THREAT BY GENE COLTER AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS SOARED YESTERDAY AS EAGER INVESTORS MOVED PAST THEIR WORRIES OF INCREASED INFLATION AND PICKED UP THE BOND RALLY WHERE IT LEFT OFF ONE WEEK AGO SINCE THE GOVERNMENT REPORTED A SHARPERTHANEXPECTED JUMP IN THE PRODUCER PRICE INDEX LAST FRIDAY THE MARKET HAS BEEN PUSHED DOWN BY GROWING FEARS OF INFLATION BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN DURING YESTERDAY'S TRADING HOWEVER THESE INFLATION FEARS SEEMED TO HAVE BEEN COMPLETELY WRUNG OUT OF THE MARKET AFTER THE INFLATION SCARE PEOPLE HAVE STARTED LOOKING AT THE ECONOMY SHIFTING DOWN A BIT SAID RICHARD B BERNER CHIEF ECONOMIST AT MELLON BANK AND THAT HAS TAKEN SOME OF THE STEAM OUT OF THE INFLATION SCARE YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1 1/8 POINTS TO 104 10/32 A GAIN OF NEARLY 1125 FOR A BOND WITH 1000 FACE VALUE ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 678 FROM 687 ON WEDNESDAY THAT PUTS THE YIELD AT ABOUT THE SAME LEVELS AS BEFORE INFLATION WORRIES GRIPPED THE MARKET LAST WEEK THE 10YEAR NOTE ROSE 7/8 POINT TO 102 21/32 FOR A YIELD OF 588 DOWN FROM 6 ON WEDNESDAY ACCORDING TO MR BERNER THE ECONOMIC NUMBERS WE'VE BEEN LOOKING AT INDICATE A SLOWER PACE OF GROWTH AND IT'S HARD TO SEE INFLATION GROWING IN THAT CONTEXT WEAK ECONOMIES INTERNATIONALLY MAKE IT HARD TO SEE HOW THERE COULD BE AN UPTICK IN INFLATION HE SAID MR BERNER POINTED TO THE WEAKNESS IN THE GERMAN ECONOMY AS ONE SIGN THAT GLOBAL INFLATION WAS UNLIKELY TO PICK UP IN THE NEAR FUTURE ALL THE CRITERIA FOR LOWER GERMAN INTEREST RATES ARE FALLING INTO PLACE TRADERS BID UP PRICES RIGHT FROM THE BEGINNING AS OVERSEAS CUSTOMERS IN PARTICULAR ZEALOUSLY MOVED INTO THE US DEBT MARKET AFTER THE BUNDESBANK THE GERMAN CENTRAL BANK LOWERED ITS OFFICIAL FLOOR FOR INTEREST RATES KNOWN AS THE DISCOUNT RATE BY HALF A PERCENTAGE POINT TO 75 YOU'D HAVE TO THINK THE BUNDESBANK RATE CUT IS WHAT'S DRIVING A LOT OF THE MARKET IN THE SHORT END SAID JOHN FECHTER HEAD GOVERNMENT SECURITIES TRADER AT AG EDWARDS & SONS INC LOWER RATES ABROAD AND HOPES FOR GROWING STRENGTH IN THE DOLLAR WOULD TEND TO MAKE US DEBT INVESTMENTS APPEAR MORE ATTRACTIVE BUT TRADING VOLUME BEGAN TO FALL OFF NOT LONG AFTER THE BUNDESBANK RATE CUT AND TRADING WAS LIGHTER THROUGHOUT THE REST OF THE SESSION MANY BOND PLAYERS FEEL THE MARKET IS RISING BECAUSE OF IMPROVED SENTIMENT THE MARKET'S GOOD FORTUNE HAS BEEN MADE BETTER BY INVESTORS WHO HAVE BEEN WILLING TO BRUSH ASIDE ANY ECONOMIC NEWS HINTING AT STRENGTH IN THE ECONOMY AND STEP IN TO BUY WHEN PRICES DROP NOT LONG AFTER THE GAINS SEEN FROM THE GERMAN RATE CUT THE MARKET RECEIVED A TEST OF ITS STRENGTH WHEN THREE SETS OF ECONOMIC DATA SCROLLED ACROSS THE NEWSWIRES THE LABOR DEPARTMENT REPORTED THAT FIRSTTIME CLAIMS FOR STATE UNEMPLOYMENT INSURANCE FELL 15000 IN THE WEEK ENDED MARCH 6 THEN FELL ANOTHER 10000 IN THE WEEK ENDED MARCH 13 TO SETTLE AT A NEW LEVEL OF 351000 THE DEPARTMENT REVISED ITS CLAIMS REPORT TO TRACK THE CLAIMS ON A ONEWEEK LAG RATHER THAN TWO WEEKS IN ORDER TO MAKE IT MORE TIMELY TO FACILITATE THE TRANSITION TWO WEEKS WORTH OF DATA WERE REPORTED YESTERDAY THEN THE COMMERCE DEPARTMENT REPORTED THAT THE TRADE DEFICIT BETWEEN THE US AND ITS TRADING PARTNERS HAD WIDENED IN JANUARY TO 73 BILLION FROM 695 BILLION LAST DECEMBER ALTHOUGH BOTH REPORTS COULD HAVE BEEN READ AS BEARISH THE MARKET HELD UP WELL THE REALLY BIG DATA WAS WEDNESDAY SAID MATTHEW ALEXY MARKET STRATEGIST AT FIRST BOSTON CORP MR ALEXY WAS REFERRING TO A KEY REPORT ON INFLATION THE CONSUMER PRICE INDEX DESPITE NEWS THAT CONSUMER PRICES EDGED UP IN FEBRUARY THE BOND MARKET POSTED GAINS WEDNESDAY'S AND YESTERDAY'S SESSIONS WERE MORE OF A REFERENDUM ON WHAT INFLATION IS SAID MR ALEXY WHO FEELS RECENT PRICE DROPS ARE DUE MORE TO ONETIME DISRUPTIONS THAN REAL INFLATION DANGER BY WAY OF EXAMPLE ONE CAN LOOK AT YESTERDAY'S GAINS IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 COMMODITY FUTURES PRICES A WIDELY WATCHED INFLATION INDICATOR THE CRB SETTLED 214 POINTS HIGHER AT 21170 NORMALLY A GAIN OF TWO POINTS WOULD SEND INFLATION PANIC THROUGH THE MARKET AS IT DID LAST WEEK THROUGHOUT THE DAY TREASURYS BENEFITED FROM BUYING BY MORTGAGEBACKED SECURITIES TRADERS WHO WERE TRYING TO PROTECT THEIR POSITIONS BY BUYING TREASURY NOTES THE TREND FOR THE LAST FEW WEEKS HAS BEEN TO SELL MORTGAGES AND BUY TREASURYS POINTED OUT AG EDWARDS'S MR FECHTER MORTGAGE TRADERS HAVE BEEN DISTRESSED BUT YESTERDAY THEIR PAINS WERE COMPOUNDED BY NEWS FROM THE MORTGAGE BANKERS ASSOCIATION AN INDUSTRY TRADE GROUP THE MBA REPORTED THAT HOMEOWNER REFINANCING ACTIVITY HIT A ONEWEEK RECORD LAST WEEK THAT MEANS SECURITIES CREATED FROM MORTGAGES WILL BE CALLED EARLY OR PREPAID SUCH VOLATILITY STINGS INVESTORS WHO MAY HAVE TO REINVEST MONEY AT CURRENT LOW RATES LATE IN THE DAY THE FEDERAL RESERVE REPORTED THAT THE WIDELY WATCHED MEASURE OF MONEY SUPPLY KNOWN AS M2 FELL 19 BILLION IN THE WEEK ENDED MARCH 8 THAT PUTS M2 GROWTH RATE AT NEGATIVE 19 FROM THE FOURTH QUARTER BASE OF LAST YEAR FAR BELOW THE FED'S TARGET OF 2 TO 6 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 IN LATE WHENISSUED TRADING THE TWOYEAR NOTE SCHEDULED TO BE AUCTIONED NEXT WEEK BY THE TREASURY WAS YIELDING 388 DOWN 011 PERCENTAGE POINT FROM LATE WEDNESDAY THE WHENISSUED FIVEYEAR NOTE WAS YIELDING 510 DOWN 015 PERCENTAGE POINT THE TWOYEAR NOTE IS SCHEDULED TO BE AUCTIONED NEXT WEDNESDAY AND THE FIVEYEAR NOTE ON THURSDAY PRICES OF MUNICIPAL BONDS ROSE WITH TREASURYS YESTERDAY SHOWING SIGNIFICANT STRENGTH AFTER HEAVY PROFITTAKING IN SOME RECENT SESSIONS MUNI PRICES ENDED GENERALLY 1/8 POINT TO 1/2 POINT HIGHER ALTHOUGH SOME BONDS GAINED AS MUCH AS A POINT AMONG ACTIVELY TRADED ISSUES MASSACHUSETTS' 550 GENERAL OBLIGATION REFUNDING BONDS MATURING IN 2011 CLOSED 1/4 POINT HIGHER AT 97 3/8 TO YIELD 570 THERE WAS HEAVIER BUYING OF THE DADE COUNTY FLA HEALTH FACILITIES AUTHORITY'S 525 HOSPITAL REVENUE REFUNDING BONDS MATURING IN 2021 WHICH FINISHED 7/8 POINT HIGHER AT 92 1/2 TO YIELD 579 IN THE NEWISSUE SECTOR NEW YORK CITY'S YENDENOMINATED SAMURAI BONDS ARE BECOMING MORE OF A FOCUS SEVERAL WEEKS BEFORE THEIR ANTICIPATED PRICING STANDARD & POOR'S CORP SAID IT ASSIGNED A SINGLEAMINUS RATING TO THE NEW YORK CITY SAMURAI FUNDING CORP'S 20 BILLION YEN 1705 MILLION OF TAXABLE BONDS BASED ON A PLEDGE OF NEW YORK CITY GENERAL OBLIGATION BONDS AS SECURITY ACCORDING TO S&P THE NEW YORK OFFERING WOULD BE THE THIRD MAJOR DEBT ISSUE BY US MUNICIPAL ISSUERS DIRECTED TO NONUS INVESTORS PREVIOUSLY SUCH ISSUES WERE SOLD BY LOS ANGELES COUNTY AND THE KENTUCKY DEVELOPMENT FINANCE AUTHORITY BY DIVERSIFYING THE GROUP OF INVESTORS ABLE TO PURCHASE THE BONDS THE CITY HOPES TO PAY A LOWER INTEREST RATE ON ITS DEBT IT IS PARTICULARLY ATTRACTIVE FOR ISSUERS THAT HAVE SIGNIFICANT ONGOING NEEDS FOR TAXABLE DEBT SUCH AS NEW YORK CITY SAID S&P THE CITY HAS CREATED THE NEW YORK CITY SAMURAI FUNDING CORP A NOTFORPROFIT CORPORATION TO ACT AS A CONDUIT FOR THE SALE OF THE YENDENOMINATED BONDS IN ANOTHER PRIMARY MARKET DEVELOPMENT THE NEW YORK STATE METROPOLITAN TRANSPORTATION AUTHORITY'S 4927 MILLION OF SERIES O AND P TRANSIT AND COMMUTER FACILITIES SERVICE CONTRACT REFUNDING BONDS WERE BROUGHT TO THE MARKET BY A BEAR STEARNS & CO GROUP INCLUDED IN THE OFFERING WERE 3203 MILLION OF SERIES O TRANSIT FACILITIES BONDS AND 1724 MILLION OF SERIES P COMMUTER FACILITIES BONDS DEMAND FOR THE BONDS WAS STRONG ENOUGH TO MERIT A CUT IN YIELDS OF AS MUCH AS 005 PERCENTAGE POINT FOR SOME PARTS OF THE ISSUE YIELDS RANGED FROM 375 FOR SERIES O NOTES MATURING IN 1995 TO 602 FOR THOSE MATURING IN 2017 SERIES P NOTES WHICH CARRY 575 COUPONS AND MATURE IN 2015 WERE PRICED TO YIELD 610 THE OFFERING HAS BEEN RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP PRICES OF CORPORATE BONDS ENDED HIGHER ALTHOUGH INVESTORS CONTINUED TO BUY AND SELL BONDS SELECTIVELY HIGHGRADE ISSUES CLOSED 1/4 TO AS MUCH AS 7/8 POINT HIGHER JUNK BONDS ENDED 1/8 TO 1/4 POINT HIGHER THE DECLINE IN INTEREST RATES HAD A GREATER EFFECT ON THE PRIMARY MARKET SYNDICATE OFFICIALS SAID THE RISE IN TREASURY PRICES HELPED THEM PLACE MANY OF THE UNSOLD BONDS THAT HAVE BEEN LANGUISHING ON DEALER SHELVES RECENTLY IT ALSO MADE INVESTORS MORE WILLING TO BUY SOME OF THE NEW BONDS PRICED YESTERDAY AMONG THEM WAS A 200 MILLION ISSUE OF 10YEAR NOTES BY ELI LILLY & CO THE PHARMACEUTICAL CONCERN MEANWHILE GENERAL ELECTRIC CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO ISSUED A 300 MILLION OFFERING OF DRAGON BONDS THROUGH DEALERS LED BY LEHMAN BROTHERS SECURITIES ASIA LTD DRAGON BONDS ARE DOLLARDENOMINATED SECURITIES SOLD IN THE PACIFIC RIM OUTSIDE OF JAPAN BANKERS SAID THIS WAS THE FIRST DRAGON BOND OFFERING BY A US CORPORATION PREVIOUS DRAGON BOND OFFERINGS HAVE BEEN ISSUED THROUGH THE ASIAN DEVELOPMENT BANK IN 1991 AND 1992 PRICES OF MORTGAGE SECURITIES FINISHED AS MUCH AS 1/2 POINT HIGHER DESPITE MORE EVIDENCE THAT LARGE NUMBERS OF HOMEOWNERS ARE ABOUT TO REFINANCE MORTGAGES IN TRADING 7 SECURITIES FOR APRIL DELIVERY ALL CLOSED 1/2 POINT HIGHER GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED AT 100 31/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED AT 101 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED AT 100 27/32 THE MORTGAGE MARKET WAS BUOYED BY CONTINUED PURCHASES BY DEALERS SEEKING COLLATERAL FOR NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT OFFERINGS AGENCY REMIC ISSUANCE ANNOUNCED YESTERDAY REACHED 24 BILLION BRINGING THE WEEK'S VOLUME SO FAR TO A HEFTY 5 BILLION DESPITE YESTERDAY'S PRICE GAINS THE MORTGAGE SECURITIES MARKET REMAINS SKITTISH ACCORDING TO ANALYSTS THAT'S BECAUSE THE RECENT DROP IN MORTGAGE RATES IS EXPECTED TO SPUR MORE MORTGAGE REFINANCINGS BY HOMEOWNERS RESULTING IN EARLY REPAYMENT ON MORTGAGE SECURITIES SUCH REPAYMENTS KNOWN AS PREPAYMENTS CAN RESULT IN CAPITAL LOSSES ON SECURITIES TRADING ABOVE PAR BECAUSE THE HOLDER OF A PREPAID SECURITY RECEIVES A PRICE OF PAR TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9303190063 930319 BUSINESS BRIEF COMMERCIAL METALS CO QUARTERLY EARNINGS SURGED GAINS IN THREE UNITS CITED BOLSTERED BY IMPROVED RESULTS FROM THREE OF ITS MAJOR OPERATING DIVISIONS COMMERCIAL METALS CO REPORTED THAT ITS NET INCOME FOR THE SECOND QUARTER ENDED FEB 28 SURGED TO 48 MILLION OR 44 CENTS A SHARE FROM 438000 OR FOUR CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE ROSE 56 TO 4134 MILLION FROM 2658 MILLION THE METAL PROCESSOR AND INDUSTRIAL MANUFACTURER SAID IN DALLAS THAT SECONDQUARTER OPERATING PROFIT AT ITS MARKETING AND TRADING UNIT SOARED TO 52 MILLION FROM 14 MILLION MEANWHILE AMID A RECOVERY IN THE US ECONOMY OPERATING PROFIT AT THE COMPANY'S MANUFACTURING SEGMENT ROSE 44 TO 6 MILLION FROM 41 MILLION THE COMPANY'S RECYCLING OPERATION REPORTED ITS FIRST OPERATING PROFIT IN EIGHT QUARTERS 363000 COMPARED WITH AN OPERATION LOSS OF 16 MILLION A YEAR EARLIER 9303190062 930319 ART INVESTING IS ENLIVENED BY PHOTOGRAPHY AUCTION SALES TO COLLECTORS A STRONG CORE' HEARTEN CHRISTIE'S AND SOTHEBY'S BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH PHOTOGRAPHY IS PROVING TO BE A BRIGHT SPOT AMID THE GLUM DAYS OF ART INVESTING WHEN A SECOND BATCH OF PRINTS BY RUSSIAN PHOTOGRAPHER ALEXANDER RODCHENKO GOES UP FOR SALE ON MAY 6 CHRISTIE'S INTERNATIONAL PLC PHOTOGRAPHY CONSULTANT LINDSEY STEWART IS BETTING ON A FULL HOUSE IN A CHRISTIE'S SALE IN LONDON LAST OCTOBER PRICES FOR MR RODCHENKO'S WORKS SOARED HIS GIRL WITH LEICA ESTIMATED AT 12000 TO 16000 17262 TO 23016 AT CURRENT RATES FETCHED 115500 THE HIGHEST PRICE EVER PAID FOR A PHOTOGRAPH AT AUCTION SAYS MS STEWART WE HAD A LOT OF DISAPPOINTED BIDDERS SHE SAYS THEY WILL BE BACK BUT MS STEWART ADDS WITH A TOUCH OF CAUTION WE REALLY CAN'T EXPECT TO DO THAT WELL AGAIN LIVING FROM 1891 TO 1956 MR RODCHENKO LEFT A UNIQUE PHOTOGRAPHIC DOCUMENT OF RUSSIAN LIFE AND COLLECTORS' ENTHUSIASM FOR HIS WORK DEMONSTRATES A MARKET THAT SEEMS TO BE WEATHERING THE RECESSIONARY 1990S THE PHOTOGRAPHY MARKET HASN'T SUFFERED AS MUCH AS OTHER MARKETS DECLARES SOTHEBY'S HOLDINGS INC PHOTOGRAPHY EXPERT PHILIPPE GARNER HE SAYS COLLECTORS OF FINE AND RARE 19THCENTURY AND 20THCENTURY PHOTOGRAPHS ARE MORE SERIOUS THAN INVESTORS WHO ARTIFICIALLY BOOSTED PRICES IN OTHER SECTORS SUCH AS CONTEMPORARY ART THEREFORE MR GARNER CLAIMS OUR MARKET DOESN'T FALL VICTIM TO PAINFUL BOOSTS AND BUSTS MS STEWART ADDS THAT THE PHOTOGRAPHY MARKET CAN RELY ON A STRONG CORE OF PEOPLE WHO ARE BESOTTED WITH THE SUBJECT AND COLLECTORS HAVE STEADILY INCREASED INDEED AT THE ZELDA CHEATLE GALLERY A LONDON PHOTO SPECIALIST THE MOOD IS QUITE UPBEAT ALTHOUGH MS CHEATLE ADMITS TO A QUIET PHASE IN THE PAST COUPLE OF YEARS SHE SAYS SINCE AUTUMN OF LAST YEAR THE MARKET HAS BEEN WONDERFUL OVER AT HAMILTONS GALLERY ANOTHER LONDON PHOTO SPECIALIST SASCHA HACKEL ALSO FEELS NEW VIGOR IN THE MARKET MS HACKEL EXPLAINS THAT SALES CONTINUED STEADILY EVEN AFTER THE DEMISE OF THE EASYSPENDING 1980S AND WE WERE LESS AFFECTED BY THE SLUMP THAN OTHERS SHE ADDS IN THE LAST SIX MONTHS THE MARKET HAS REALLY STARTED GOING UP KASPAR M FLEISCHMANN OF THE GALERIE ZUR STOCKEREGG IN ZURICH ONE OF THE CONTINENT'S LEADING PHOTOGRAPHY GALLERIES PREDICTS THAT WE THE MARKET ARE IN A TAKEOFF PHASE FOR RARE AND TOPQUALITY PHOTOGRAPHS THE MOST DESIRABLE' IS INCREASING IN VALUE WITH PRICES GOING HIGHER AND HIGHER SAYS MS STEWART ON THE OTHER HAND SECONDARY PHOTOGRAPHS HAVE GONE DOWN IN PRICE SHE NOTES MS HACKEL SUGGESTS THAT THE 1990S PRODUCED A CAREFUL BUYER PEOPLE ARE HAPPY TO BUY BUT THEY REFLECT A LOT MORE THEY COME BACK TO LOOK AGAIN THE MARKET DIVIDES ROUGHLY INTO THE CLASSICAL WHICH INCLUDES THE PERIOD DATING FROM THE INVENTION OF PHOTOGRAPHY IN THE EARLY 19TH CENTURY UNTIL WORLD WAR II AND POSTWAR CONTEMPORARY THE BULK OF FINE CLASSICAL AND CONTEMPORARY PHOTOGRAPHS RANGES IN VALUE FROM 100000 DOWN TO 1000 SAYS MR FLEISCHMANN MR FLEISCHMANN WHO SPECIALIZES IN CLASSICAL PHOTOGRAPHS ILLUSTRATES HOW PRICES HAVE DEVELOPED DURING THE LIFE OF HIS GALLERY WHEN HE OPENED 15 YEARS AGO THE AVERAGE PRICE OF AVAILABLE WORKS RANGED BETWEEN 2000 AND 25000 THE RANGE FOR COMPARABLE WORKS TODAY HE ESTIMATES WOULD BE BETWEEN 10000 TO 150000 OR MORE THE PRICE OF PHOTOGRAPHS DEPENDS ON A COMPLEX NUMBER OF FACTORS HE EXPLAINS THEY INCLUDE PRINT QUALITY IMPORTANCE OF THE PHOTOGRAPHER AND OF A PARTICULAR PHOTO WITHIN THE PHOTOGRAPHER'S WORK BEAUTY OF COMPOSITION PHYSICAL CONDITION AUTHENTICITY RARITY VINTAGE HISTORY SIGNATURE STAMP DATE NOTES OF PHOTOGRAPHER PRESENCE IN PROMINENT COLLECTIONS AND EXHIBITIONS AND PRICES ACHIEVED AT AUCTION ANSEL ADAMS'S VINTAGE PRINTS SELL AT AROUND 10000 TO 30000 WHEREAS LATERPRINTED PHOTOS CAN DROP TO 2000 MR FLEISCHMANN SAYS VINTAGE PRINTS ARE THOSE THAT ARE DEVELOPED BY THE PHOTOGRAPHER YOU HAVE TO UNDERSTAND THE MARKET SAYS MR FLEISCHMANN THERE IS A LARGE GRAY ZONE IN THIS RELATIVELY YOUNG FIELD OF COLLECTING WHICH BEGAN SERIOUSLY WITH AMERICAN MUSEUMS AFTER WORLD WAR II MR FLEISCHMANN SEES GREAT GROWTH POTENTIAL NEVERTHELESS HE WARNS AGAINST GOING INTO PHOTOGRAPHY FOR PURE INVESTMENT AND HE SAYS MOST IMPORTANT FOR A COLLECTOR IS TO DETERMINE FROM THE BEGINNING WHAT SUBJECTIVELY INTERESTS HIM OR HER GENERALLY DEALERS SAY COLLECTIONS CENTER ON FIVE CATEGORIES THEMES STYLES AND PERIODS TECHNIQUES MASTER PRINTS AND INDIVIDUAL PHOTOGRAPHERS IN THE CONTEMPORARY SECTOR MS CHEATLE SAYS A CUSTOMER WHO WISHES TO START A COLLECTION CAN GET A PHOTOGRAPH FROM TWO TOP BRITISH ARTISTS FOR 500 EACH FOR 5000 SHE ESTIMATES A COLLECTOR CAN START OFF WITH 10 OR 11 GREAT PHOTOS NEW PEOPLE ARE DRAWN TO THE MARKET MS CHEATLE EXPLAINS BECAUSE PHOTOGRAPHY CAN BE UNDERSTOOD BY THE MAJORITY OF PEOPLE WHEREAS A LOT OF PEOPLE CAN'T UNDERSTAND CONTEMPORARY ART SHE SEES A CONFIRMATION OF THE APPEAL OF PHOTOGRAPHY IN THE NUMBER OF CONTEMPORARY ART GALLERIES MOVING INTO PHOTOGRAPHY PHOTOGRAPHY IS NO LONGER A POOR RELATION DECLARES MS CHEATLE 9303190061 930319 BUSINESS BRIEF BRAMALEA LTD TORONTO FIRM WILL REDUCE TRIZEC'S ROLE ON ITS BOARD BRAMALEA LTD WHICH RECENTLY REORGANIZED UNDER CANADIAN BANKRUPTCY LAW PROTECTION SAID IT WILL NOMINATE A NEW BOARD THAT INCLUDES FAR FEWER REPRESENTATIVES OF ITS MAJOR SHAREHOLDER TRIZEC CORP BRAMALEA A TORONTO REAL ESTATE CONCERN SAID THE NEW 12MEMBER BOARD WLL BE VOTED ON BY SHAREHOLDERS NEXT MONTH THE BOARD WILL INCLUDE SEVEN INDEPENDENT DIRECTORS TWO MANAGEMENT DIRECTORS AND THREE REPRESENTATIVES ASSOCIATED WITH TRIZEC A CALGARY ALBERTA REAL ESTATE COMPANY THAT IS CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN BRAMALEA PREVIOUSLY HAD 16 DIRECTORS INCLUDING SIX TRIZEC REPRESENTATIVES AND TWO REPRESENTATIVES FROM OLYMPIA & YORK DEVELOPMENTS LTD ANOTHER TORONTO REAL ESTATE CONCERN THAT RECENTLY RESTRUCTURED ITS DEBT UNDER CANADIAN COURT PROTECTION 9303190060 930319 BUSINESS BRIEF TELECOM CORP OPTION TO BUY 276 STAKE EXPIRES AND ISN'T RENEWED TELECOM CORP DALLAS SAID AN OPTION TO PURCHASE ABOUT 276 OF ITS COMMON SHARES OUTSTANDING HAD EXPIRED AND WASN'T RENEWED IN FEBRUARY THE COMPANY SAID IT WAS NOTIFIED THAT WMG INVESTMENTS INC HAD PURCHASED AN OPTION TO ACQUIRE ONE MILLION SHARES FOR 3 MILLION FROM RIVER VIEW TRUST TELECOM A HOLDING COMPANY WITH INTERESTS IN EQUIPMENT MANUFACTURING AND THE DISTRIBUTION OF AIR CONDITIONING AND HEATING PRODUCTS SAID THAT SUBSEQUENT NEGOTIATIONS BETWEEN WMG BASED IN WINSTONSALEM NC AND THE TRUST DIDN'T LEAD TO A RENEWAL OF THE OPTION WHICH EXPIRED MARCH 1 TELECOM ALSO SAID IT RETAINED RAUSCHER PIERCE REFSNES A DALLAS INVESTMENT BANKING FIRM TO ASSIST IT IN IDENTIFYING FINANCIAL STRATEGIES INCLUDING POSSIBLY PURCHASING THE SHARES HELD BY THE TRUST 9303190059 930319 TECHNOLOGY BRIEF SONY CORP UNIT TO BEGIN SELLING SOON APPLE'S MACINTOSH IN JAPAN SONY CORP OF JAPAN WILL BEGIN SELLING APPLE COMPUTER INC'S MACINTOSH COMPUTERS IN JAPAN THIS MONTH A SPOKESMAN SAID THE SONY UNIT WILL OFFER THE MACINTOSH PERSONAL COMPUTERS WITH ITS OWN NETWORK SERVERS AND WORKSTATIONS THE SPOKESMAN ADDED THE MOVE COMES AT A TIME WHEN THE JAPANESE MARKETPLACE IS IN THE GRIP OF A PRICE WAR AND AS SEVERAL JAPANESE MAKERS ALREADY PROCURE LOWCOST MACHINES FROM FOREIGN MAKERS THAT THEY SELL UNDER JAPANESE NAMES 9303190058 930319 BUSINESS BRIEF ASARCO INC COMPANY EXPECTS TO REPORT A LOSS FOR THE FIRST QUARTER ASARCO INC NEW YORK SAID IT EXPECTS TO REPORT A LOSS FOR THE FIRST QUARTER AFTER RECORDING 20 MILLION IN NET EXPENSES RELATED TO HEAVY RAIN AND FLOODING IN ARIZONA IN THE YEAREARLIER QUARTER THE MINING COMPANY EARNED 64 MILLION OR 16 CENTS A SHARE FROM OPERATIONS AFTER A CHARGE RELATED TO AN ACCOUNTING CHANGE THE YEAREARLIER NET LOSS WAS 476 MILLION OR 115 A SHARE ASARCO SAID THAT 21 INCHES OF RAIN IN THE AREA DURING THE FIRST QUARTER COMPARED WITH AN ANNUAL AVERAGE OF 175 INCHES REDUCED COPPER PRODUCTION BY 10000 TONS AND CAUSED DAMAGE TO THE MINING FACILITIES AT ITS RAY MINE THE COMPANY SAID THAT THE DAMAGE IS COVERED BY INSURANCE AND THAT IT INTENDS TO FILE A CLAIM THE COMPANY ALSO BLAMED LOWER METAL PRICES AND A SCHEDULED 30DAY MAINTENANCE SHUTDOWN AT ITS HAYDEN ARIZ SMELTER IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ASARCO WAS QUOTED AT 24625 UP 1 9303190057 930319 ECONOMY JAPANESE INVESTMENT IN US REAL ESTATE DRIED UP IN '92 AMID PROBLEMS AT HOME BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW JAPANESE INVESTMENT IN US REAL ESTATE PLUMMETED TO 807 MILLION LAST YEAR FROM A 1988 PEAK OF 1654 BILLION AS DEBTRIDDEN LENDERS IN JAPAN FOCUSED ON RESTRUCTURING THEIR HUGE PORTFOLIO OF PROBLEM ASSETS ACCORDING TO A NEW STUDY THE 1992 NEW INVESTMENT A STEEP DROP FROM THE 51 BILLION INVESTED IN 1991 REPRESENTS A VIRTUAL SHUTOFF IN THE FLOW OF JAPANESE REAL ESTATE MONEY TO THE US AND IS THE LOWEST SINCE THE AUTHOR OF THE STUDY KENNETH LEVENTHAL & CO BEGAN TRACKING JAPANESE INVESTMENT IN 1985 PUMMELED BY RECESSION AND PLUNGING STOCK VALUES AT HOME AS WELL AS FALLING VALUES OF US PROPERTIES JAPANESE INVESTORS ACTUALLY BEGAN PULLING THE PLUG ON NEW MONEY TWO YEARS AGO BUT IT HAS TAKEN THIS LONG TO COMPLETE PREVIOUS COMMITMENTS THE JAPANESE SLAMMED THE BRAKES ON THEN BUT THE TRAIN DIDN'T STOP UNTIL THIS YEAR SAID JACK RODMAN DIRECTOR OF THE PACIFIC RIM PRACTICE FOR KENNETH LEVENTHAL A LOS ANGELES ACCOUNTING AND CONSULTING FIRM THE TREND DOESN'T JUST INCLUDE THE JAPANESE THE COMMERCE DEPARTMENT RECENTLY ESTIMATED THAT DIRECT INVESTMENT IN US FACTORIES REAL ESTATE AND COMPANIES BY ALL FOREIGNERS SHOWED A NET DECLINE OF 395 BILLION LAST YEAR ALTHOUGH OTHER TYPES OF INVESTMENT SHOWED A NET GAIN THE PREDICAMENT OF JAPANESE INVESTORS CONTRASTS WITH THEIR IMAGE OF JUST TWO YEARS AGO WHEN MICHAEL CRICHTON'S THE RISING SUN PORTRAYED THEM AS OMNISCIENT AND INFALLIBLE POWERED BY A STRONG YEN THEY BOUGHT AT THE TOP OF THE MARKET PAYING PREMIUM PRICES TO BOOT THEN THE US ECONOMY SANK INTO RECESSION CARRYING REAL ESTATE DOWN WITH IT AT HOME JAPAN'S ECONOMY BUBBLE FINALLY BURST AND TOKYO STOCK VALUES NOSEDIVED DRAINING THE BANKS THAT HOLD US LOANS ALL THIS SHATTERED JAPANESE INVESTORS' PERCEPTIONS OF ECONOMIC INVULNERABILITY THEY FELT THE UPSIDE WOULD LAST FOREVER SAID SANFORD R GOODKIN A REAL ESTATE CONSULTANT BASED IN SAN DIEGO THEY WERE ALL GOING INTO DEALS THAT WERE CALCULATED ON AN UNREASONABLE INFLATIONARY EXPECTATION FEW ANALYSTS EXPECT A MASS DUMPING OF JAPANESE HOLDINGS IN THE US WHICH TOTAL 76 BILLION IN DIRECT INVESTMENT ALONE SINCE 1985 BUT ARE ALSO BELIEVED TO INCLUDE BETWEEN 150 BILLION AND 250 BILLION IN US REAL ESTATE LOANS FOR ALL OF JAPAN'S REAL ESTATE ASSETS WORLDWIDE ESTIMATES OF NONPERFORMING ASSETS HELD BY JAPANESE BANKS RANGE FROM 210 BILLION TO 425 BILLION BY COMPARISON GOLDMAN SACHS & CO ESTIMATES THAT PROBLEM REAL ESTATE HELD BY PRIVATE AND GOVERNMENT INSTITUTIONS IN THE US AT ABOUT 250 BILLION INSTEAD ANALYSTS SAY JAPANESE BANKS ARE FALLING UNDER INCREASED PRESSURE FROM THEIR GOVERNMENT TO RESTRUCTURE PROBLEMS RELATED TO NONPERFORMING LOANS IN ADDITION IMPLEMENTATION OF NEW US BANKING RULES WILL FORCE FOREIGN BANKS TO SET ASIDE CAPITAL RESERVES FOR NONPERFORMING LOANS HERETOFORE JAPANESE BANKS HAVE NOT BEEN REQUIRED TO SET ASIDE RESERVES LIKE THEIR US COUNTERPARTS INHOUSE RESTRUCTURING BY JAPANESE LENDERS HAS BEEN UNDERWAY FOR ABOUT TWO YEARS UNLIKE US BANKS THAT FORECLOSE ON A BAD PROPERTY AND JUST SELL IT OFF THE JAPANESE BANKS TYPICALLY INITIATE A QUIET FORECLOSURE THAT ENDS UP WITH THEIR SWITCHING FROM A SICK BORROWER TO ONE WITH MORE CAPITAL THEY DEAL IN THE QUIETEST WAY MOSTLY BEHIND THE SCENES WITH CONTACTS SAID MR GOODKIN THE SAN DIEGO REAL ESTATE CONSULTANT THIS WAS BELIEVED TO BE THE CASE IN THE MUCHPUBLICIZED SALE LAST YEAR OF CALIFORNIA'S PEBBLE BEACH GOLF LINKS BY JAPANESE DEVELOPER MINORU ISUTANI TO A NEW COMPANY ORGANIZED BY ONE OF HIS MAJOR LENDERS IN ONE OF THE WORST REALESTATE DEALS EVER MR ISUTANI HAD PURCHASED THE 5300ACRE SEASIDE PROPERTY IN LATE 1990 FOR 841 MILLION AND WAS FORCED TO GIVE IT UP 17 MONTHS LATER FOR A REPORTED 500 MILLION WHILE THE INHOUSE RESTRUCTURING TACTICS MAY SPARE THE US FROM BEING FLOODED WITH NEW PROBLEM REAL ESTATE MR RODMAN AND SOME OTHER ANALYSTS DO EXPECT THE JAPANESE TO START SELLING A FEW SELECT PROPERTIES IN MARKETS LIKE CALIFORNIA HAWAII AND NEW YORK WHERE THE BULK OF THEIR INVESTMENTS HAVE BEEN CONCENTRATED US COMMERCIAL REAL ESTATE VALUES APPEAR TO HAVE BOTTOMED OUT AT A DEVALUATION OF APPROXIMATELY 40 FOR TROUBLED PROPERTIES BUT CALIFORNIA'S OFFICE MARKET IS STILL BLOATED POSSIBLY DETERRING SALES THERE PLUS THE JAPANESE WERE SUCH MAJOR PLAYERS DURING THE REAL ESTATE HEYDAY OF THE 1980S THAT THEIR EFFECTIVE ABSENCE FROM THE MONEY MARKETS MEANS US COMMERCIAL REAL ESTATE WILL NOT BE ABLE TO COUNT ON THEM TO SIGNIFICANTLY ASSIST IN A RECOVERY AS IT IS THE US COMMERCIAL MARKETS AREN'T EXPECTED TO BEGIN RECOVERY UNTIL AT LEAST 1995 AND THE JAPANESE HAVE SO MANY PROBLEMS THEY PROBABLY WON'T RETURN AS PLAYERS UNTIL THE NEXT CENTURY IT JUST MEANS THERE'S LESS LIQUIDITY IN US REAL ESTATE SAID DAN NEIDICH HEAD OF REAL ESTATE AT GOLDMAN SACHS 9303190056 930319 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 LOW 2 15/16 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 89 DAYS 310 90 TO 119 DAYS 312 120 TO 149 DAYS 315 150 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 317 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 267 TWO MONTHS 269 THREE MONTHS 283 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 315 ONE MONTH 315 THREE MONTHS 318 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 303 90 DAYS 305 120 DAYS 308 150 DAYS 309 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 5/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 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 719 60 DAYS 728 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 722 60 DAYS 732 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 9303190055 930319 BUSINESS BRIEF DSC COMMUNICATIONS CORP SHAREHOLDER SUIT CONCERNING MISINFORMATION IS DISMISSED DSC COMMUNICATIONS CORP SAID A DALLAS FEDERAL COURT DISMISSED A SHAREHOLDER SUIT SEEKING CLASSACTION STATUS THAT CHARGED THE PLANO TEXAS TELECOMMUNICATIONSEQUIPMENT MAKER MISLED INVESTORS ABOUT THE QUALITY AND RELIABILITY OF ITS SOFTWARE THE RULING STATED THAT SINCE NONE OF THE DSC DIRECTORS AND OFFICERS NAMED IN THE SUIT HAD SOLD THEIR SHARES DURING THE PERIOD IN QUESTION THERE WASN'T ANY INFERENCE OF INSIDER TRADING THE STOCKHOLDER ACTION WAS FILED IN 1991 AFTER THE COMPANY'S SOFTWARE WAS IMPLICATED IN A SERIES OF LOCAL PHONESERVICE DISRUPTIONS THE COMPANY'S STOCK PRICE SUBSEQUENTLY DECLINED FROM A HIGH OF 975 IN APRIL THAT YEAR TO 3875 IN AUGUST A LAWYER FOR A GROUP OF PLAINTIFFS WOULDN'T COMMENT ON THE DISMISSAL THE COMPANY'S STOCK HAS SINCE REBOUNDED CLOSING AT 25625 DOWN 125 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9303190054 930319 WHAT'S NEWS WORLDWIDE BOSNIA TALKS WERE INTERRUPTED IN A PROTEST OVER A SERB OFFENSIVE THE MUSLIM PRESIDENT OF THE FORMER YUGOSLAV REPUBLIC ON HIS ARRIVAL IN NEW YORK FOR PEACE NEGOTIATIONS SAID HE COULD NOT PARTICIPATE AS LONG AS BOSNIAN SERB FORCES CONTINUED THEIR DRIVE ON SREBRENICA AND HEAVY SHELLING OF SARAJEVO UN PEACEKEEPERS IN BOSNIA PRESSED SERB LEADERS TO HALT ATTEMPTS TO CAPTURE SREBRENICA THE LAST MUSLIM STRONGHOLD IN AN AREA OF EASTERN BOSNIA SWOLLEN WITH 60000 REFUGEES FROM RECENT FIGHTING A SREBRENICABOUND RELIEF CONVOY HALTED AT THE SERBIAN BORDER FOR EIGHT DAYS WAS ALLOWED TO ENTER BOSNIA BUT WAS TURNED BACK BY SERB MILITIAS CLINTON IS EXPECTED TO ANNOUNCE TODAY HIS 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 HAD REJECTED THE PLAN SAYING IT VIOLATED A NEW FEDERAL LAW PROTECTING PEOPLE WITH DISABILITIES KHASBULATOV SAID ANY MOVES RUSSIAN PRESIDENT YELTSIN MIGHT MAKE AGAINST THE PARLIAMENT COULD LEAD TO DICTATORSHIP YELTSIN'S ADVISERS HAVE URGED HIM TO DECLARE PRESIDENTIAL RULE AND DISBAND PARLIAMENT AFTER IT VOTED LAST WEEK TO STRIP HIM OF MOST POWERS A SPOKESMAN SAID YELTSIN HAD MADE A DECISION AND WOULD ANNOUNCE IT SOON RUSSIA WARNED GEORGIA IT WOULD RESPOND WITH FORCE IF MORE OF ITS FACILITIES ARE ATTACKED IN GEORGIA'S BATTLE WITH SEPARATIST REBELS IN THE BREAKAWAY REGION OF ABKHAZIA MOSCOW SAID A RUSSIAN MILITARY SANITORIUM IN THE CITY OF SUKHUMI AND A NEARBY LABORATORY WERE ATTACKED IN RECENT FIGHTING POLAND'S PARLIAMENT REJECTED THE GOVERNMENT'S PLAN TO PRIVATIZE 600 STATE ENTERPRISES HANDING A SERIOUS SETBACK TO THE FRAGILE GOVERNING COALITION HEADED BY PRIME MINISTER SUCHOCKA THE REJECTION ALSO COULD UNDERMINE POLAND'S IMPROVING STATURE WITH INTERNATIONAL LENDING INSTITUTIONS AND WITH FOREIGN INVESTORS THE SECURITY COUNCIL IS TO BEGIN DELIBERATIONS TODAY ON A RESOLUTION AUTHORIZING UN TROOPS TO REPLACE THE USLED PEACEKEEPING FORCE IN SOMALIA MEANWHILE UN NEGOTIATORS TRIED TO RESTART TALKS AIMED AT RESTORING A GOVERNMENT IN SOMALIA TALKS WERE INTERRUPTED WHEN A KEY MILITIA LEADER WITHDREW BECAUSE OF CLAN FIGHTING IN KISMAYU PATTEN PREDICTED CHINA ULTIMATELY WILL ACCEPT HIS PROPOSALS TO EXPAND DEMOCRACY IN HONG KONG EVEN THOUGH BEIJING HAS THREATENED TO VOID THEM WHEN THE TERRITORY REVERTS TO CHINESE RULE IN 1997 PATTEN SAID THAT DESPITE CHINESE DENUNCIATIONS OF HIM HE PLANS TO REMAIN AS HONG KONG'S GOVERNOR UNTIL THAT TIME ITALY'S GOVERNMENT SUFFERED A FURTHER SETBACK IN A SPREADING CORRUPTION INVESTIGATION AS PARLIAMENT VOTED DOWN A PLAN TO RESTART PUBLIC WORKS PROGRAMS HALTED BY INQUIRIES INTO POSSIBLE PAYOFFS MEANWHILE MORE ARREST WARRANTS WERE ISSUED IN THE INVESTIGATION INCLUDING SOME AGAINST PROMINENT BUSINESS AND POLITICAL FIGURES A BIPARTISAN COMMISSION RECOMMENDED RADIO FREE EUROPE RADIO LIBERTY AND TV MARTI SHOULD BE PHASED OUT AND OTHER PROJECTS ABANDONED INCLUDING THE PROPOSED RADIO FREE ASIA AND PLANS TO BUILD SHORTWAVE RELAY STATIONS IN ISRAEL AND KUWAIT THE PANEL'S REPORT WAS STRONGLY CRITICIZED BY THE HEAD OF US OVERSEAS RADIO BROADCASTS THE US TRIED TO REVIVE THE ANGOLA PEACE ACCORD BY SEEKING TALKS WITH UNITA LEADER SAVIMBI WHO HAS BEEN WARNED WASHINGTON WILL RECOGNIZE THE LUANDA GOVERNMENT UNLESS HE RETURNS TO THE NEGOTIATING TABLE SAVIMBI RENEWED THE CIVIL WAR IN ANGOLA AFTER REFUSING TO ACCEPT DEFEAT IN RECENT ELECTIONS UNDER A 1991 PEACE AGREEMENT SOUTH KOREAN LEADERS SOUGHT TO ALLAY THE COUNTRY'S FEARS THAT TENSIONS OVER NORTH KOREA'S WITHDRAWAL FROM AN INTERNATIONAL NUCLEARCONTROL TREATY COULD ESCALATE TO WAR MEANWHILE THE AGENCY IN CHARGE OF ENFORCING THE TREATY DELAYED UNTIL LATER THIS MONTH ANY DECISION ON PRESSING PYONGYANG TO ACCEPT INSPECTION OF ITS NUCLEAR SITES FRENCH VOTERS PREPARED TO GO TO THE POLLS SUNDAY IN THE FIRST OF TWO ROUNDS OF VOTING THAT POLLS PREDICT WILL LEAD TO A SWEEPING DEFEAT OF THE RULING SOCIALISTS AND THE ELECTION OF A STRONG CONSERVATIVE MAJORITY TO PARLIAMENT THE CAMPAIGN HAS BEEN DOMINATED BY CONCERN ABOUT RISING UNEMPLOYMENT AND ANGER OVER FINANCIAL SCANDALS 9303190053 930319 BUSINESS BRIEF RENAISSANCE COMMUNICATIONS CORP FOUR FOX TV AFFILIATES ACQUIRED FOR 180 MILLION RENAISSANCE COMMUNICATIONS CORP ACQUIRED FOUR FOX TELEVISION AFFILIATES FROM CHASE COMMUNICATIONS HARTFORD CONN FOR AN ESTIMATED 180 MILLION RENAISSANCE A CLOSELY HELD COMPANY BASED IN GREENWICH CONN WILL KEEP THREE OF THE STATIONS WXIM IN INDIANAPOLIS WTIC IN HARTFORD AND KDVR IN DENVER IT WILL SELL THE FOURTH ATLANTA'S WATL TO FOX TELEVISION STATIONS INC A UNIT OF NEWS CORP IN A PREVIOUSLY ANNOUNCED TRANSACTION TO COMPLY WITH FEDERAL REGULATIONS PROHIBITING A COMPANY FROM OWNING MORE THAN ONE TV STATION IN A MARKET RENAISSANCE SOLD ITS HARTFORD STATION WTXX TO COUNTERPOINT COMMUNICATIONS CORP RENAISSANCE WHICH ALREADY OWNS FOX AFFILIATES IN SACRAMENTO CALIF AND HARRISBURG PA SAID THE DEAL MAKES IT THE LARGEST FOX AFFILIATE GROUP IN THE US COVERING MORE THAN 5 OF ALL TELEVISION HOMES THE COMPANY ALSO OWNS MIAMI INDEPENDENT WDZL 9303190052 930319 WHAT'S NEWS BUSINESS AND FINANCE THE HOUSE VOTED 243183 TO APPROVE THE OUTLINES OF CLINTON'S PROGRAM TO CUT THE DEFICIT AND REORDER THE NATION'S ECONOMIC PRIORITIES HOUSE DEMOCRATS DISPLAYING UNUSUAL PARTY COHESION THEN MOVED TOWARD APPROVAL OF AN ACCOMPANYING 16 BILLIONPLUS ECONOMIC STIMULUS PACKAGE BOND PRICES SURGED PUSHING UP BLUECHIP STOCKS AS INFLATION FEARS WANED THE DOLLAR SANK TO A RECORD LOW AGAINST THE YEN THE DOW JONES INDUSTRIALS ROSE 3890 TO 346564 TREASURY BOND PRICES GAINED NEARLY 1 1/8 POINTS GENERAL DYNAMICS ACCELERATED ITS DISMANTLING AS THREE TOP EXECUTIVES SAID THEY WOULD RESIGN AS EMPLOYEES BUT REMAIN ON THE BOARD THE DEFENSE GIANT PLANS TO PAY SHAREHOLDERS 20 A SHARE OR 620 MILLION IN CASH TOKYO STOCKS JUMPED 31 THURSDAY FOR A TWOWEEK ADVANCE OF 12 BUT MUCH OF THE CLIMB HAS BEEN ORCHESTRATED BY THE JAPANESE GOVERNMENT PRICES FELL SLIGHTLY FRIDAY MORNING GERMANY'S CENTRAL BANK LOWERED ITS DISCOUNT RATE TO 75 FROM 8 BUT LEFT THE LOMBARD RATE UNCHANGED EUROPEAN STOCKS HAD LITTLE REACTION SEARS'S ALLSTATE INSURANCE UNIT INTENDS TO RAISE ABOUT 2 BILLION IN WHAT WOULD BE THE LARGEST INITIAL PUBLIC OFFERING BY ANY US CORPORATION KEMPER AGREED TO SWAP ITS REINSURANCE AND RISKMANAGEMENT UNITS FOR A 35 STAKE IN THE INSURER HELD BY ITS FORMER PARENT KEMPER'S STOCK SOARED 5375 OR 17 TO 36625 ROYAL BANK OF CANADA AGREED TO ACQUIRE ROYAL TRUSTCO'S OPERATIONS AND MOST OF ITS LOAN PORTFOLIO IN A TRANSACTION VALUED AT 132 BILLION THE US TRADE DEFICIT WIDENED TO 73 BILLION IN JANUARY FROM 689 BILLION IN DECEMBER AS DECLINING EXPORTS MORE THAN OFFSET A DROP IN IMPORTS LIVESTOCK FUTURES RALLIED EXTENDING AN ADVANCE THAT IS HURTING MEATPACKERS AND THREATENING TO SHARPLY INCREASE CONSUMERS' GROCERY BILLS CANADA MEXICO AND THE US BEGAN TALKS TO SET UP LABOR AND ENVIRONMENTAL BOARDS AS PART OF THE FREETRADE ACCORD BUT CONFLICTS QUICKLY AROSE THE SEC CLEARED THE WAY FOR THE OPERATION BY SEPTEMBER OF A SYSTEM FOR PUBLICLY REPORTING PRICES AND TRADING VOLUME IN THE JUNK BOND MARKET MERCK DEVELOPED A NEW TYPE OF VACCINE THAT MAY LEAD TO A SIMPLER AND SAFER WAY TO PREVENT A NUMBER OF DISEASES SEPARATELY MERCK TEMPORARILY CUT PRICES ON TWO CHOLESTEROL DRUGS CRAY RESEARCH LOST SOME FEDERAL HELP AS THE GOVERNMENT CANCELED A PROJECT TO HELP THE COMPANY DEVELOP SOFTWARE FOR A NEW SUPERCOMPUTER NEW JAPANESE INVESTMENT IN US REAL ESTATE SANK IN 1992 TO 807 MILLION DOWN FROM 51 BILLION THE YEAR BEFORE AND FROM 1654 BILLION IN 1988 BMW POSTED AN UNEXPECTED 73 DECLINE IN EARNINGS FOR 1992 EVEN THOUGH THE GERMAN AUTO MAKER REPORTED RECORD SALES FOR THE YEAR BONDS LEHMAN BROTHERS TREASURY INDEX 506499 UP 4620 COMMODITIES OIL 2029 A BARREL UP 12 CENTS DOW JONES FUTURES INDEX 13157 UP 121 SPOT INDEX 12570 UP 041 DOLLAR 11570 YEN OFF 150 16415 MARKS OFF 00200 9303190051 930319 BUSINESS BRIEF COMCAST CORP CONCERN SAYS LOSS WIDENED IN 1992 TO 2702 MILLION COMCAST CORP PHILADELPHIA REPORTED A SIGNIFICANTLY WIDER LOSS FOR 1992 BECAUSE OF LARGE INTEREST AND AMORTIZATION EXPENSES RELATED TO ACQUISITIONS MAINLY ITS 50 STAKE IN STORER COMMUNICATIONS INC HOWEVER OPERATING CASH FLOW WHICH CABLE COMPANIES SAY IS A MORE IMPORTANT INDICATOR ROSE 28 FOR COMCAST OPERATING CASH FLOW IS INCOME BEFORE INTEREST EXPENSE INCOME TAXES AND NONCASH CHARGES SUCH AS DEPRECIATION AND AMORTIZATION CABLE COMPANIES USUALLY DON'T PRODUCE NET INCOME BECAUSE OF LARGE DEPRECIATION AND AMORTIZATION THE CABLE AND CELLULAR COMMUNICATIONS COMPANY SAID THE NET LOSS IN 1992 WAS 2702 MILLION OR 201 A SHARE COMPARED WITH A LOSS OF 1556 MILLION OR 131 A SHARE IN 1991 RESULTS INCLUDED THE EFFECT OF COMCAST'S PROPORTIONATE SHARE OF LOSSES RELATED TO ITS STAKE IN STORER THROUGH DEC 2 INCLUDING 523 MILLION OR 39 CENTS A SHARE FOR DEBT REDEMPTION CHARGES RESULTS ALSO REFLECTED LOSSES RELATED TO COMCAST'S 40 STAKE IN GARDEN STATE CABLEVISION LP FOR THE FULL YEAR REVENUE ROSE 24 TO 9003 MILLION FROM 721 MILLION THE COMPANY DIDN'T REPORT SEPARATE FOURTHQUARTER RESULTS 9303190050 930319 BUSINESS BRIEF HANSON PLC PEABODY UNIT IN PACT TO BUY DISPUTED COSTAIN ASSETS PEABODY HOLDING CO THE US COAL BUSINESS OF HANSON PLC SAID IT SIGNED AN AGREEMENT WITH COSTAIN GROUP PLC TO BUY COSTAIN'S AUSTRALIAN COAL ASSETS ENDING THE COMPANIES' DISPUTE OVER THE SALE THE AGREEMENT FOLLOWS THE ISSUING OF A PERMANENT INJUNCTION LAST MONTH BY A FEDERAL JUDGE IN ST LOUIS PREVENTING COSTAIN FROM SELLING THE COAL ASSETS TO A UNIT OF FRANCE'S CREDIT LYONNAIS PEABODY HAD AGREED LAST FALL TO ACQUIRE THE AUSTRALIAN ASSETS SUBSEQUENTLY THOUGH COSTAIN SIGNED A SEPARATE DEAL TO SELL THE ASSETS TO ALTUS SA A CREDIT LYONNAIS UNIT PEABODY AND HANSON SUED TO STOP THAT SALE AND ENFORCE THEIR CONTRACT HANSON SAID THAT AS PROVIDED IN THE ORIGINAL AGREEMENT PEABODY WILL PAY COSTAIN 200 MILLION PLUS A NET ASSET ADJUSTMENT SUBJECT TO A FINAL AUDIT ESTIMATED TO BE 34 MILLION BASED ON CURRENT EXCHANGE RATES IT ALSO WILL ASSUME DEBT OF ABOUT 65 MILLION THE ACQUISITION WILL BRING PEABODY AN ESTIMATED 663 MILLION TONS OF LOWSULFUR RESERVES AND RESOURCES INCLUDING FULL OR PARTIAL OWNERSHIP OF THREE AUSTRALIAN SURFACE MINES 9303190049 930319 INTERNATIONAL ROYAL BANK OF CANADA AGREES TO BUY OPERATIONS MOST LOANS OF ROYAL TRUSTCO BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL CANADA'S LARGEST BANK ROYAL BANK OF CANADA HAS COME TO THE AID OF ROYAL TRUSTCO LTD BY AGREEING TO ACQUIRE ALL OF THE FINANCIAL CONCERN'S OPERATIONS AND MOST OF ITS LOAN PORTFOLIO IN A COMPLEX TRANSACTION VALUED AT ABOUT 165 BILLION CANADIAN DOLLARS US132 BILLION THE ACQUISITION WOULD END A DECADELONG VENTURE INTO FINANCIAL SERVICES BY TORONTO'S BRONFMAN FAMILY WHILE AT THE SAME TIME CATAPULTING ROYAL BANK INTO THE LEAD IN THE RACE BY CANADIAN BANKS TO MOVE INTO THE TRUST COMPANY BUSINESS ROYAL BANK'S AGREEMENT TO ACQUIRE THE ROYAL TRUSTCO OPERATIONS WHICH INCLUDE 146 RETAIL BANKING BRANCHES AND CANADA'S SECONDLARGEST PERSONAL TRUST BUSINESS ENDS A TWOMONTH SEARCH FOR AN INVESTOR TO INJECT AS MUCH AS C500 MILLION OF NEW EQUITY AT THE ROYAL TRUSTCO HOLDING COMPANY LEVEL ROYAL BANK AND OTHER POTENTIAL PARTNERS REJECTED THAT OPTION AT AN EARLY STAGE IN FAVOR OF A STRAIGHTFORWARD ACQUISITION OF THE TRUST COMPANY ASSETS BUT THE DEAL DOESN'T SOLVE ALL OF ROYAL TRUSTCO'S WOES AS PART OF THE COMPLEX TRANSACTION THE HOLDING COMPANY WILL USE NOT ONLY THE PROCEEDS FROM THE ASSET SALE BUT ALSO AN ADDITIONAL C157 BILLION OF CASH TO BUY BACK FROM ROYAL BANK ABOUT C321 BILLION OF REAL ESTATE LOANS ABOUT 25 OF THOSE LOANS ARE NONPERFORMING OR UNDERPERFORMING ROYAL TRUSTCO SAID MY CONCERN ALL ALONG HAS BEEN THAT ROYAL TRUSTCO AS THE HOLDING COMPANY WOULD BE FORCED TO RETAIN A LARGE PART OF THESE PROBLEM REAL ESTATE LOANS SAID ALAIN TUCHMAIER AN ANALYST WITH MCLEAN MCCARTHY LTD IN TORONTO AT SEPT 30 1992 ROYAL TRUSTCO HAD ABOUT C13 BILLION IN CASH AND SHORTTERM SECURITIES THE COMPANY'S 48 OWNER TRILON FINANCIAL CORP A BRONFMAN GROUP HOLDING COMPANY HAS SAID IT WILL PROVIDE AS MUCH AS C100 MILLION IN ADDITIONAL FINANCING IF NEEDED WHEN THE DEAL CLOSES IN THREE OR FOUR MONTHS ONCE THE BANKING AND TRUST OPERATIONS HAVE BEEN TRANSFERRED TO ROYAL BANK WHICH IS BASED IN MONTREAL ROYAL TRUSTCO APPEARS LIKELY TO EVENTUALLY BE WOUND DOWN ANALYSTS AGREE JAMES MILLER PRESIDENT AND CHIEF EXECUTIVE OF ROYAL TRUSTCO SAID THE COMPANY WILL BECOME A REAL ESTATE FINANCE CONCERN AND FOCUS ITS ENERGIES ON COLLECTING THE EXISTING LOANS HE SAID NO NEW LOANS WILL BE MADE THE ANNOUNCEMENT MARKS ANOTHER STEP IN THE GRADUAL DISMANTLING OF THE EMPIRE CONTROLLED BY FINANCIERS PETER AND EDWARD BRONFMAN THE BRONFMAN GROUP ALREADY SOLD NEARLY C2 BILLION IN ASSETS IN THE LAST MONTH ALONE PROBLEMS AT ROYAL TRUSTCO WHICH EXPECTS TO REPORT A LOSS OF AS MUCH AS C900 MILLION IN 1992 ARE PARTLY RESPONSIBLE FOR THE GROUP'S WOES IN 1991 ROYAL TRUSTCO REPORTED NET INCOME OF C107 MILLION OR 25 CANADIAN CENTS A SHARE THE ROYAL TRUST ACQUISITION GIVES ROYAL BANK A SOLID FOOTHOLD IN THE ASSET MANAGEMENT AND TRUST BUSINESSES OPENED TO BANKS UNDER NEW FINANCIAL SERVICES REGULATIONS PASSED BY THE CANADIAN GOVERNMENT LATE LAST YEAR ALLAN TAYLOR CHAIRMAN OF THE BANK SAID HE VIEWS THE TRUST BUSINESS AS BEING OF CRUCIAL IMPORTANCE TO THE BANK'S FUTURE BUT ROYAL BANK OFFICIALS ADMIT THEY ARE PAYING A PREMIUM FOR ROYAL TRUST'S CENTURYOLD NAME AND REPUTATION ALTHOUGH ON A CASH BASIS THE BANK WILL COME OUT AHEAD ON THE TRANSACTION THERE LIKELY WILL BE BALANCE SHEET ADJUSTMENTS REFLECTING THE FACT THAT THE VALUE OF DEPOSIT LIABILITIES ACQUIRED EXCEED THAT OF ASSETS ACQUIRED BY AN ASYET UNDETERMINED AMOUNT IN TORONTO STOCK EXCHANGE TRADING YESTERDAY ROYAL BANK SHARES CLOSED AT C24875 A SHARE DOWN 375 CANADIAN CENTS ROYAL TRUSTCO SHARES ROSE SIX CANADIAN CENTS TO C190 A SHARE ROYAL TRUSTCO AND TRILON ARE BOTH BASED IN TORONTO AND MEMBERS OF THE GROUP OF COMPANIES CONTROLLED BY PETER AND EDWARD BRONFMAN THE BRONFMAN BROTHERS ARE COUSINS OF MONTREAL'S SEAGRAM DISTILLING DYNASTY BUT THE TWO FAMILIES HAVE NO COMMON BUSINESS OPERATIONS 9303190048 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 AND 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 THE OFFERING COMES AT WHAT SEEMS AN IDEAL TIME GIVEN THE SOARING VALUES OF PROPERTY AND CASUALTY STOCKS SINCE LAST AUGUST'S HURRICANE ANDREW ALTHOUGH THE STORM CAUSED HUGE LOSSES FOR INSURERS INVESTORS BELIEVE THE INSURERS WILL HAVE TO RAISE PRICES TO MAKE UP FOR THE LOSSES ENDING A HEATED PRICE WAR THAT HAS ERODED PROFITS FOR THE PAST SIX YEARS A NUMBER OF INSURANCE COMPANIES NOTABLY AMERICAN RE CORP A MAJOR PROPERTY AND CASUALTY REINSURER HAVE GONE PUBLIC RECENTLY TAKING ADVANTAGE OF THE FAVORABLE MARKET CONDITIONS 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 EFFORT 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 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 AT 26 A SHARE TOTAL PROCEEDS WOULD BE 233 BILLION 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 THE ALLSTATE OFFERING COULD ALSO BE THE LARGEST STOCK OFFERING OF ANY KIND FOR A US ISSUER DEPENDING ON THE SALES PRICE LAST MONTH CHRYSLER CORP RAISED MORE THAN 2 BILLION IN THE SECONDLARGEST COMMON STOCK OFFERING EVER BY A PUBLICLY HELD US COMPANY WHILE GENERAL MOTORS CORP HAD A 215 BILLION OFFERING LAST MAY 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 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 AN UNDISCLOSED PORTION OF THE OFFERING WOULD ALSO BE USED TO REDUCE THE DEBT OF SEARS EDWARD WELLER AN ANALYST WITH MONTGOMERY SECURITIES IN SAN FRANCISCO SAID IT NOW SEEMS LIKELY THAT SEARS WILL RAISE THE 3 BILLION IT PLANNED THROUGH ASSET SALES FOR DEBT REDUCTION IN ADDITION TO THE ALLSTATE FUNDS SEARS SHOULD HAVE MORE THAN 500 MILLION AVAILABLE FOR DEBT REDUCTION FROM ITS RECENT INITIAL PUBLIC OFFERING OF DEAN WITTER SHARES ANALYSTS ESTIMATE THAT SEARS'S COLDWELL BANKER REAL ESTATE UNIT SHOULD BRING AT LEAST 500 MILLION THROUGH ITS DIVESTITURES AND ASSET SALES SEARS PLANS TO REDUCE ITS TOTAL DEBT TO ABOUT 16 BILLION FROM ABOUT 38 BILLION THE LOWER DEBT LEVEL SHOULD MAKE IT EASIER FOR SEARS TO FUND THE 4 BILLION FIVEYEAR RENOVATION PROGRAM IT PLANS FOR ITS AILING RETAIL STORE CHAIN 9303190047 930319 BUSINESS BRIEF SCHOLASTIC CORP PUBLISHER'S EARNINGS GREW BY 75 IN THE THIRD QUARTER SCHOLASTIC CORP SAID FISCAL THIRDQUARTER NET INCOME GREW 75 BECAUSE OF HIGHER REVENUE ESPECIALLY IN DOMESTIC PUBLISHING AND LOWER INTEREST EXPENSES THE NEW YORK PUBLISHER OF CHILDREN'S AND EDUCATIONAL BOOKS ALSO SAID IT ACQUIRED A 263 INTEREST IN USBORNE PUBLISHING A BRITISH PUBLISHER OF CHILDREN'S NONFICTION WITH ANNUAL REVENUE OF ABOUT 20 MILLION SCHOLASTIC REPORTED NET OF 64 MILLION OR 40 CENTS A SHARE FOR THE QUARTER ENDED FEB 28 COMPARED WITH THE YEAREARLIER'S 37 MILLION OR 33 CENTS A SHARE REVENUE ROSE 10 TO 1315 MILLION FROM 1196 MILLION THE COMPANY ATTRIBUTED THE INCREASE TO DOMESTIC BOOK PUBLISHING WITH REVENUE OF 883 MILLION AN 18 RISE FROM THE YEAREARLIER 751 MILLION SCHOLASTIC SAID IMPROVED MARGINS SUPPORTED GROWTH IN OPERATING INCOME PARTICULARLY A 26 MILLION REDUCTION IN INTEREST LEVELS BECAUSE OF DEBT REDUCTION RESULTING FROM THE COMPANY'S FEBRUARY 1992 INITIAL PUBLIC OFFERING 9303190046 930319 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN TAIWAN MIGHT BE UNABLE TO AFFORD ITS 303 BILLION DEVELOPMENT PLAN AND MAY SCALE BACK THE UNPRECEDENTED 775 PROJECTS INCLUDING ROADS HIGHSPEED RAILWAYS A POWER STATION SEWAGE SYSTEMS HOSPITALS BASEBALL FIELDS AND AN AMUSEMENT PARK THE GOVERNMENT WILL REASSESS THE SIXYEAR PLAN STARTED IN 1990 BECAUSE TAIWAN'S CURRENT ACCOUNT SURPLUS HAS SINCE SLID LAST YEAR FALLING 34 TO 79 BILLION FROM 1991 THE CURRENT ACCOUNT MEASURES TRANSACTIONS IN SERVICES SUCH AS INVESTMENT AS WELL AS TRADE IN GOODS MEANWHILE TAIWAN'S BUDGET DEFICIT IS APPROACHING ITS MANDATED CEILING AN OFFICIAL DENIED NEWS REPORTS IN TAIWAN THAT THE DEVELOPMENT OUTLAYS WOULD BE CUT TO 185 BILLION BUT ACKNOWLEDGED THAT ONLY 8317 BILLION WAS ALLOCATED FOR 510 PROJECTS FROM 199294 TAIWAN'S CABINET PROPOSED A RECORD BUDGET OF 6522 BILLION FOR THE FISCAL YEAR BEGINNING IN JULY UP 61 FROM THE YEAREARLIER BUDGET AND A SPECIAL ALLOCATION OF 14 BILLION FOR TRANSPORTATION JOBS IN THE DEVELOPMENT PLAN THE LATEST PROPOSAL WOULD PRODUCE A RECORD DEFICIT OF 961 BILLION CHINA BECAME THE THIRDLARGEST MARKET FOR SOUTH KOREAN AUTOS IN THIS YEAR'S FIRST TWO MONTHS IMPORTING 7500 CARS VALUED AT 48 MILLION THE KOREAN EXPORTS TO CHINA REPRESENTED A TENFOLD INCREASE FROM THE YEAREARLIER TOTAL OF 714 AUTOS VALUED AT 95 MILLION THE BIGGEST MARKETS FOR KOREAN AUTO SHIPMENTS IN THE LATEST PERIOD WERE THE EUROPEAN COMMUNITY TOTALING 109 MILLION AND THE US 108 MILLION THE PHILIPPINE ECONOMY IS LIKELY TO RECOVER THIS YEAR THE CENTRAL BANK GOVERNOR SAID PREDICTING THAT INFLATIONADJUSTED GROSS NATIONAL PRODUCT WILL GROW BETWEEN 3 AND 4 COMPARED WITH 06 LAST YEAR THE OFFICIAL JOSE CUISIA JR SAID THE GOVERNMENT WHICH ALREADY HAS CURTAILED INFLATION AND INTEREST RATES IS COMMITTED TO CONTINUING ITS ECONOMIC STABILIZATION PROGRAM AND HELPING BUSINESS THROUGH STRATEGIES SUCH AS FOREIGN EXCHANGE DEREGULATION HE PREDICTED THAT GNP WILL GROW AN AVERAGE OF 66 A YEAR THROUGH 1998 AND THAT INFLATION WILL SLOW TO 74 THIS YEAR FROM AN 89 RATE IN 1992 AND 187 IN 1991 AND FALL TO 58 BY 1998 THE THAI ATTORNEY GENERAL'S OFFICE FILED CHARGES AGAINST A DOZEN STOCK MARKET SPECULATORS IN THE COUNTRY'S FIRST STOCK MANIPULATION CASE SONG WATCHARARIROJ A MAJOR BOURSE PLAYER AND 11 ASSOCIATES WERE EACH CHARGED WITH FOUR VIOLATIONS OF THE SECURITIES AND EXCHANGE COMMISSION ACT RELATED TO ERRATIC MOVEMENTS LAST OCTOBER IN THE STOCK PRICE OF BANGKOK BANK OF COMMERCE THAILAND'S NINTHLARGEST COMMERCIAL BANK CONVICTIONS COULD RESULT IN TWOYEAR JAIL TERMS AND BIG FINES LEBANON'S CABINET RECEIVED A 129 BILLION PLAN TO REBUILD THE COUNTRY DEVASTATED BY THE 197590 CIVIL WAR WITH PARLIAMENTARY APPROVAL THE DECADELONG PROJECT COULD BE LAUNCHED THIS YEAR THE PLAN DRAWN UP BY THE GOVERNMENTSUPERVISED COUNCIL FOR DEVELOPMENT AND RECONSTRUCTION CALLS FOR REBUILDING INFRASTRUCTURE THIS INCLUDES ELECTRICITY GRIDS WATER AND SEWAGE NETWORKS TELECOMMUNICATIONS AND ROADS THE PLAN ALSO COVERS DEVELOPMENT OF PUBLIC TRANSPORTATION HOUSING EDUCATION AND HEALTH SERVICES THE INITIAL COST OF THE PLAN WAS ESTIMATED AT 10 BILLION BUT INTEREST AND SERVICE CHARGES OVER THE 10YEAR PERIOD BOOST THE TOTAL TO 129 BILLION FINANCING IS TO COME FROM FOREIGN GRANTS AND LOANS AN EXPECTED BUDGET SURPLUS AS OF 1996 AND TREASURY BOND SALES TWO WEEKS AGO THE WORLD BANK APPROVED ITS FIRST LOAN IN 15 YEARS TO THE LEBANESE GOVERNMENT A 175 MILLION CREDIT TO SUPPORT POSTWAR RECONSTRUCTION TO PROTEST GREECE'S AUSTERITY PROGRAM DESIGNED TO IMPROVE THE ECONOMY TENS OF THOUSANDS OF WORKERS YESTERDAY STAGED A NATIONWIDE STRIKE WHICH DELAYED AIRLINE FLIGHTS IN ATHENS AND TRAINS THROUGHOUT THE COUNTRY SLOVAKIA'S ECONOMICS MINISTER LUDOVIT CERNAK RESIGNED INTENSIFYING POLITICAL TURMOIL IN THE NEWLY INDEPENDENT REPUBLIC HE WAS THE ONLY MEMBER OF THE SLOVAK NATIONAL PARTY IN THE GOVERNMENT OF PREMIER VLADIMIR MECIAR 9303190045 930319 ENTERPRISE SECONDARY MARKET FOR SMALLBUSINESS LOANS GAINS STEAM ADVOCATES PRAISE EASING OF CREDIT LOGJAM CRITICS SEE RISK FEDERAL LIABILITY BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SECONDARY MARKET WORKED WELL FOR HOUSING WILL IT WORK WONDERS FOR SMALL BUSINESS TOO CREATION OF SUCH A MARKET FOR SMALLBUSINESS LOANS SIMILAR TO THE MULTIBILLIONDOLLAR SECONDARY HOMEMORTGAGE MARKET LONG HAS SIMMERED ON THE BACK BURNER IN CONGRESS NOW THE ISSUE HAS MOVED TO THE FRONT OF THE STOVE BACKED BY AN ENDORSEMENT FROM PRESIDENT CLINTON AND FUELED BY PRESSURE FROM SMALLBUSINESS OWNERS WHO SAY THEY OFTEN CAN'T FIND CREDIT A SECONDARY MARKET PACKAGES LOANS INTO SECURITIES THAT ARE SOLD TO INVESTORS APPLIED TO THE SMALLBUSINESS SECTOR THE CONCEPT WOULD GIVE BANKS AN OUTLET TO SELL SUCH LOANS AND THUS ENCOURAGE MORE LENDING TO ENTREPRENEURS ADVOCATES SAY OVER TIME PROPONENTS ADD A SECONDARY MARKET COULD GREATLY EASE THE PERSISTENT LOGJAM IN SMALLBUSINESS CREDIT BILLS PAVING THE WAY FOR A SMALLBUSINESS SECONDARY MARKET HAVE BEEN INTRODUCED RECENTLY IN THE HOUSE AND SENATE LAWMAKERS DISAGREE OVER WHETHER THE FEDERAL GOVERNMENT SHOULD BE AN ACTIVE OR PASSIVE PLAYER AND HOW BEST TO WRAP DIVERSE SMALLCOMPANY LOANS INTO ATTRACTIVE SECURITIES BUT MANY OBSERVERS THINK THE CHANCES FOR CONGRESSIONAL ACTION ARE GOOD THERE'S AN AWFUL LOT OF SUPPORT FOR DOING SOMETHING THIS TIME AROUND SAYS EDWARD YINGLING GOVERNMENT RELATIONS DIRECTOR OF THE AMERICAN BANKERS ASSOCIATION HE THINKS THE ODDS OF CONGRESS APPROVING SOME FORM OF SECONDARY SMALLBUSINESS LOAN MARKET ARE EXCELLENT DURING HIS CAMPAIGN LAST FALL PRESIDENT CLINTON PLEDGED TO EXPLORE NEW WAYS TO SECURITIZE BANK LOANS TO SMALL BUSINESSES INTO DEBT SECURITIES THAT CAN BE SOLD IN SECONDARY MARKETS LAST WEEK THE ADMINISTRATION TOOK A RELATED STEP TOWARD IMPROVING THE SUPPLY OF SMALLBUSINESS CREDIT BY PROPOSING TO LIBERALIZE RULES THAT GOVERN BANKS' LENDING TO SMALL COMPANIES LENDING ADDITIONAL CLOUT FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN TOLD A HOUSE COMMITTEE LAST MONTH THAT A SECONDARY MARKET WOULD BE VERY HELPFUL IN FREEING UP LENDING TO SMALL COMPANIES SINCE 1986 INVESTORS HAVE BEEN ABLE TO BUY SECURITIES MADE UP OF THE GOVERNMENTGUARANTEED PORTION OF SMALL BUSINESS ADMINISTRATION LOANS LAST YEAR ABOUT 2 BILLION OF THESE SECURITIES WERE SOLD ON THE SECONDARY MARKET OPENING THE PROCESS TO NONGUARANTEED SMALLBUSINESS LOANS COULD LEAD TO A MUCH LARGER SECONDARY MARKET THOUGH EXPERTS WON'T ESTIMATE HOW LARGE YET ANOTHER SIGN OF GROWING INTEREST IS THE VARIETY OF APPROACHES BEING CONSIDERED IN CONGRESS UNTIL NOW EXTENDING THE SECONDARY MARKET CONCEPT TO COVER SMALLBUSINESS LOANS LARGELY HAS BEEN THE PURSUIT OF A SINGLE MEMBER REP JOHN LAFALCE A NEW YORK DEMOCRAT AND CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE FOR 10 YEARS MR LAFALCE HAS UNSUCCESSFULLY FOUGHT TO CREATE A SOCALLED GOVERNMENT SPONSORED ENTERPRISE THAT WOULD ORGANIZE A SECONDARY SMALLBUSINESS LOAN MARKET IT WOULD RESEMBLE THE FEDERALLY CHARTERED BUT PRIVATELY OWNED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC AND STUDENT LOAN MARKETING ASSOCIATION SALLIE MAE THOSE AGENCIES HAVE BOLSTERED THE RESALE MARKET FOR HOME MORTGAGES AND STUDENT LOANS MR LAFALCE CALLS HIS PROPOSED ENTITY VELDA SUE AN ACRONYM FOR THE VENTURE ENHANCEMENT AND LOAN DEVELOPMENT ADMINISTRATION FOR SMALLER UNDERCAPITALIZED ENTERPRISES THIS YEAR VELDA SUE HAS WON SENATE SUPPORT FOR THE FIRST TIME WITH A COMPANION BILL SPONSORED BY DEMOCRATIC SEN JOHN KERRY OF MASSACHUSETTS THE PROPOSED AGENCY WOULD BUY 80 OF THE VALUE OF MEDIUMTERM SMALLBUSINESS LOANS FROM BANKS AND FINANCE COMPANIES PACKAGE THEM INTO SECURITIES AND RESELL THEM TO INSTITUTIONAL INVESTORS SUCH AS PENSION FUNDS VELDA SUE WOULDN'T TOUCH REVOLVING CREDIT AND ITS PAPER WOULDN'T CARRY A DIRECT GOVERNMENT GUARANTEE IF THE ENTERPRISE WENT SOUR THE LAFALCE BILL WOULD LET THE TREASURY DEPARTMENT BUY UP TO 15 BILLION OF VELDA SUE SECURITIES BUT VELDA SUE MAY NOT SOLVE ENTREPRENEURS' CREDIT NEEDS OTHERS ARGUE WORRY OVER THE FEDERAL BUDGET DEFICIT AND THE BURDENSOME SAVINGSANDLOAN INDUSTRY BAILOUT MAKES MANY WARY OF CREATING EVEN IMPLIED GOVERNMENT BACKING FOR NOTORIOUSLY RISKY SMALLBUSINESS LOANS THOUGH HE SYMPATHIZES WITH THE IDEA OF SECURITIZING SMALL COMMERCIAL LOANS MR GREENSPAN CALLS THE VELDA SUE CONCEPT A PROBLEM WE SHOULD BE BACKING AWAY FROM ADDS SEN ALFONSE D'AMATO A NEW YORK REPUBLICAN WE DON'T NEED TO SADDLE THE TAXPAYERS WITH MORE LIABILITY AND CREATE ANOTHER GOVERNMENT AGENCY USING UNCLE SAM'S CREDIT CARD MR D'AMATO RECENTLY INTRODUCED A BILL THAT INSTEAD CONCENTRATES ON MAKING SECURITIZED SMALLBUSINESS LOANS ATTRACTIVE TO PRIVATE INVESTORS BY REMOVING VARIOUS BANKING AND SECURITIES REGULATORY BARS AMONG OTHER THINGS HIS PLAN WOULD LET FEDERALLY CHARTERED INSURANCE COMPANIES AND PENSION FUNDS BUY SUCH SECURITIES VELDA SUE BACKERS INSIST THAT ANY WORRY OVER POSSIBLE FEDERAL LIABILITY IS MISPLACED UNCLE SAM IS NOT GOING TO BAIL OUT VELDA SUE IF IT COMES CRASHING DOWN SAYS JONATHAN WINER COUNSEL TO SEN KERRY DURING THE WHOLESALE COLLAPSE OF RESIDENTIAL AND COMMERCIAL REAL ESTATE IN THE LATE 1980S HE NOTES FANNIE MAE AND FREDDIE MAC NEVER HAD A WHIFF OF A PROBLEM EVEN IF CONGRESS DOES EMBRACE THE VELDA SUE IDEA CREATING A SECONDARY MARKET FOR SMALLBUSINESS LOANS WILL STILL FACE HURDLES THE SHEER VARIETY OF SUCH LOANS WHICH VARY WIDELY IN SIZE TERM AND RISK MAKE THE RISK ASSESSMENT OF RELATIVELY UNIFORM HOME MORTGAGES SEEM EASY STANDARD & POORS CORP MOODY'S INVESTORS SERVICE INC AND OTHER RATING SERVICES WOULD HAVE TO HELP VELDA SUE DEVELOP CRITERIA FOR ACCEPTABLE LOANS AND THEN ASSIGN GRADES OF CREDITWORTHINESS WHEN THE AGENCY OFFERED LOANBACKED SECURITIES TO INVESTORS SBA LOANS SOLD IN THE SECONDARY MARKET DON'T FACE THIS RATING PROBLEM BECAUSE THEY ARE BACKED BY GOVERNMENT GUARANTEE THOMAS HOURICAN MANAGING DIRECTOR OF THE ASSETBACKED GROUP AT STANDARD & POOR'S SAYS SMALLBUSINESS LOANS ARE 10 TIMES MORE COMPLEX THAN A MORTGAGE LOAN HE ADDS I THINK IT WOULD BE DIFFICULT TO CREATE A VELDA SUE THAT COULD ACCURATELY ASSESS THE RISK OF SECURITIES COMPOSED OF SMALLBUSINESS LOANS OTHER OBSERVERS WORRY ABOUT STANDARDIZING LOANS TO MEET THE CRITERIA OF A GOVERNMENTSPONSORED AGENCY A PRINCIPLE USED BY FANNIE MAE THAT HELPED TO ENSURE THE SUCCESS OF THE SECONDARY MORTGAGE MARKET YET THE MOVE COULD FREEZE OUT ENTREPRENEURS WITH SPECIAL BORROWING REQUIREMENTS THE PROCESS IS GOING TO BE SO SANITIZED AND STERILIZED THAT IT'S ONLY GOING TO ALLOW YOU TO MAKE CERTAIN LOANS SAYS PHILIP INGLEE PRESIDENT OF LIBERTY NATIONAL BANK IN HUNTINGTON BEACH CALIF THE NEXT GUY THAT'S GOING TO CREATE A FEDERAL EXPRESS IS NOT GOING TO GET THE MONEY 9303190044 930319 AUTO MAKERS EXPECT THIS WEEK'S OUTPUT TO RISE DESPITE STORM DETROIT THE BIG THREE AUTO MAKERS SAID THE STORM THAT HIT THE EASTERN US THIS WEEK FORCED THE COMPANIES TO IDLE SEVERAL ASSEMBLY PLANTS OR OPERATE THE PLANTS AT REDUCED CAPACITY STILL THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD A COMBINED 219889 CARS AND TRUCKS THIS WEEK UP 138 FROM THE 193213 BUILT IN THE SAME WEEK A YEAR AGO GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP ALL PLANNED SATURDAY AND DAILY OVERTIME AT SEVERAL CAR AND TRUCK ASSEMBLY PLANTS 9303190043 930319 BUSINESS BRIEF FEDDERS CORP COMPANY POSTS LOWER SALES FOR QUARTER LOSS NARROWS FEDDERS CORP PEAPACK NJ REPORTED SHARPLY LOWER FISCAL SECONDQUARTER AND HALFYEAR SALES BUT SAID IT HAD REDUCED LOSSES SIGNIFICANTLY FEDDERS SHARES ROSE 13 YESTERDAY ON THE NEWS CLOSING AT 7625 UP 875 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE ROOM AIR CONDITIONER MANUFACTURER'S SECONDQUARTER LOSS NARROWED TO 886000 OR FOUR CENTS A SHARE FROM 32 MILLION OR 17 CENTS A SHARE BUT SALES DECREASED 27 TO 366 MILLION FROM THE YEAREARLIER 498 MILLION THE COMPANY'S NET LOSS FOR THE SIX MONTHS ENDED FEB 28 ALSO NARROWED TO 34 MILLION OR 18 CENTS A SHARE FROM 95 MILLION OR 52 CENTS A SHARE FEDDERS SAID LOSSES SHRANK BECAUSE GROSS MARGINS ROSE THE COMPANY CUT SELLING GENERAL AND ADMINISTRATIVE EXPENSES BY 26 FOR THE SIX MONTHS AND INTEREST EXPENSES BY 72 FROM THE YEAR EARLIER 9303190042 930319 BUSINESS BRIEF FERRO CORP FIRSTPERIOD PROFIT EXPECTED TO FALL SLIGHTLY' FROM '92 FERRO CORP CITING THE DETERIORATING EUROPEAN ECONOMY SAID FIRSTQUARTER EARNINGS WILL BE SLIGHTLY LOWER THAN IN THE 1992 PERIOD THE CLEVELAND MAKER OF CERAMICS PLASTICS CHEMICALS AND COATINGS EARNED 129 MILLION OR 42 CENTS A SHARE ADJUSTED FOR A 3FOR2 STOCK SPLIT IN 1992'S FIRST QUARTER WE WERE AMAZED BY THE SPEED AND DEPTH OF THE DETERIORATION IN EUROPE SINCE DECEMBER SAID ALBERT C BERSTICKER PRESIDENT AND CHIEF EXECUTIVE OFFICER IMPROVED EARNINGS FROM OTHER SECTORS ESPECIALLY THE US WEREN'T STRONG ENOUGH TO OFFSET THE DECLINE IN EUROPE WHICH MADE UP 37 OF FERRO'S 11 BILLION IN REVENUE IN 1992 AND 46 OF ITS 58 MILLION IN PROFIT SEPARATELY THE COMPANY SAID IT WILL TAKE A ONETIME NONCASH CHARGE OF 38 MILLION IN THE FIRST QUARTER TO ADOPT THE FINANCIAL ACCOUNTING STANDARDS BOARD'S STATEMENT 106 WHICH CHANGES THE WAY COMPANIES ACCOUNT FOR RETIREE HEALTH CARE THE CHANGE WILL COST THE COMPANY 35 MILLION TO 4 MILLION A YEAR FERRO ALSO WILL ADOPT FASB STATEMENT 109 CHANGING THE WAY IT ACCOUNTS FOR INCOME TAXES THAT WILL REDUCE THE COMPANY'S NET DEFERRED TAX LIABILITY BY 3 MILLION 9303190041 930319 BUSINESS BRIEF MIDLAND CO WATER TRANSPORTATION UNIT IS UNDER US INVESTIGATION MIDLAND CO SAID FEDERAL AUTHORITIES ARE INVESTIGATING ITS TOWBOAT AND BARGE UNIT FOR ALLEGEDLY DUMPING BILGE WATER AND OTHER REFUSE FROM VESSELS ON THE OHIO RIVER MIDLAND SAID THE UNIT M/G TRANSPORT SERVICES INC IS COOPERATING WITH INVESTIGATORS WHICH INCLUDE THE FEDERAL BUREAU OF INVESTIGATION THE ENVIRONMENTAL PROTECTION AGENCY AND THE US COAST GUARD SEPARATELY CINCINNATIBASED MIDLAND WHICH HAS INTERESTS IN INSURANCE FINANCE WATERWAYS TRANSPORTATION AND IMPRINTED SPORTSWEAR UNITS SAID ITS FIRSTQUARTER RESULTS COULD BE REDUCED BY ABOUT 110 A SHARE AFTER TAXES CITING RECENT SEVERE WEATHER MIDLAND SAID ITS INSURANCE UNIT AMERICAN MODERN HOME GROUP EXPECTS STORMRELATED LOSSES OF ABOUT 34 MILLION AFTER TAXES IN THE YEARAGO QUARTER MIDLAND HAD PROFIT OF 41 MILLION OR 137 A SHARE ON REVENUE OF 548 MILLION 9303190040 930319 BUSINESS BRIEF HICKS MUSE & CO BUYOUT SPECIALIST TEAMS UP WITH MANAGEMENT CONCERN HICKS MUSE & CO A PRIVATE LEVERAGED BUYOUT SPECIALIST IN DALLAS SAID IT HAD ESTABLISHED A RELATIONSHIP WITH TURNER & PARTNERS A NEWLY FORMED MANAGEMENT SERVICES CONCERN BASED IN NAPLES FLA UNDER THE RELATIONSHIP HICKS MUSE AND TURNER & PARTNERS WILL JOINTLY PURSUE FRIENDLY ACQUISITIONS AFTER WHICH TURNER & PARTNERS WILL SEEK TO MAXIMIZE OPERATIONAL PERFORMANCE OF THE ACQUIRED COMPANIES AND IMPROVE SHAREHOLDER VALUE HICKS MUSE SAID IT SAID TURNER & PARTNERS WOULD OPERATE AS A CAPTIVE AFFILIATE OF HICKS MUSE AND MAKE ITS MANAGEMENT EXPERTISE AVAILABLE SOLELY TO DESIGNATED COMPANIES OWNED BY HICKS MUSE HICKS MUSE SAID WILLIAM J TURNER 49 YEARS OLD WOULD BE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TURNER & PARTNERS HICKS MUSE SAID THAT SINCE 1989 MR TURNER HAD SERVED AS CHAIRMAN AND CEO OF FOUR INDUSTRIAL COMPANIES OWNED BY FORSTMANN LITTLE & CO 9303190039 930319 BUSINESS BRIEF BAUSCH & LOMB INC FIRM TO SELL CONTACT LENSES MADE TO BE DISCARDED DAILY BAUSCH & LOMB INC SAID IT WILL MARKET A SOFT CONTACT LENS DESIGNED TO BE DISCARDED AFTER DAILY WEAR THE ROCHESTER NY HEALTH CARE PRODUCTS AND OPTICS MAKER WANTS TO ATTRACT CONTACT LENS WEARERS WITH EXTREMELY SENSITIVE EYES AS WELL AS WEARERS WHO WANT THE CONVENIENCE OF NEVER HAVING TO DISINFECT THEIR LENSES BAUSCH & LOMB WHICH SELLS CONTACT LENSES DESIGNED TO BE DISCARDED WEEKLY AND BIWEEKLY SAID DAILY THROWAWAY LENSES WILL COST MORE THAN WEEKLY LENSES WHICH RUN 400 TO 500 A YEAR MAUREEN LENTZ AN ANALYST WITH ROULSTON & CO SAID THE PRICE MAY TURN OFF SOME CONSUMERS A BAUSCH & LOMB SPOKESMAN AGREED IT WILL BE A NICHE PRODUCT BUT NOTED THAT DISPOSABLE LENSES ARE THE FASTEST GROWING SEGMENT OF THE CONTACT LENS INDUSTRY IF THE FOOD AND DRUG ADMINISTRATION APPROVES THE PROPOSED LABELING THE PRODUCT SHOULD BE AVAILABLE IN THE SECOND HALF OF 1993 IF NOT EARLIER 9303190038 930319 CORRECTIONS & AMPLIFICATIONS TELEPHONE COMPANIES AREN'T PROHIBITED FROM OWNING ALL OR SUBSTANTIAL STAKES IN COMPANIES THAT CONTROL THE CONTENT OF AN INFORMATION SERVICE AN ARTICLE MONDAY ABOUT TIME WARNER INC INACCURATELY STATED THAT PHONE COMPANIES' OWNERSHIP IN SUCH COMPANIES CAN'T EXCEED 5 CAHNERS PUBLISHING CO NEWTON MASS A UNIT OF REED ELSEVIER PLC SAID AS PART OF A CORPORATE RESTRUCTURING ROBERT BRAWN DIRECTOR OF CAHNERS' MEDICAL TITLES WILL NOW BE WORKING UNDER REED ELSEVIER'S WORLDWIDE MEDICAL PUBLISHING GROUP WHICH IS UNDER THE DIRECTION OF HERMAN BRUGGINK AN ARTICLE TUESDAY INCORRECTLY INDICATED THAT MR BRAWN WOULD DIRECT THAT GROUP SYNTEX CORP SAID IT ACQUIRED EXCLUSIVE US MARKETING RIGHTS TO THE ONCEDAILY FORMULATION OF NAPROXEN AN ARTHRITIS RELIEF PRODUCT MADE BY ELAN CORP OF IRELAND AN ARTICLE YESTERDAY FAILED TO MENTION THE TYPE OF FORMULATION OF NAPROXEN 9303190036 930319 TOKOS MEDICAL SEES WEAK 4TH QUARTER STOCK PLUNGES 21 BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL SANTA ANA CALIF SHARES OF TOKOS MEDICAL CORP PLUNGED 21 AFTER IT REPORTED A LOSS OF MOMENTUM IN ITS FOURTH QUARTER AND FORECAST A MODEST DECREASE IN FIRSTQUARTER REVENUE THE DISCLOSURES CAME IN A YEAREND FINANCIAL RELEASE THAT DIDN'T INCLUDE FOURTHQUARTER RESULTS A COMPLEX COMBINATION OF BILLING CHANGES COMPUTER PROBLEMS AND OTHER FACTORS RESULTED IN AN OVERSTATEMENT OF REVENUE THE COMPANY SAID TOKOS SHARES FELL 175 TO 675 A SHARE FROM 850 IN NATIONAL OVERTHECOUNTER TRADING AFTER THE ANNOUNCEMENT MORE THAN 49 MILLION SHARES CHANGED HANDS WITHOUT ADJUSTING FOR THE ERROR THE COMPANY'S FOURTHQUARTER EARNINGS WOULD COME IN AROUND 11 CENTS A SHARE SAID ROBERT F BYRNES CHIEF EXECUTIVE OFFICER HE INDICATED THAT THE ADJUSTED NUMBER WOULD BE RESTATED DOWNWARD BUT COULDN'T DETERMINE THE IMPACT ON THE QUARTER IN THE YEAREARLIER FOURTH QUARTER TOKOS EARNED 44 MILLION OR 27 CENTS A SHARE BEFORE A ONETIME CHARGE RELATED TO AN ACQUISITION WITH THE CHARGE IT HAD A NET LOSS OF 18 MILLION OR 12 CENTS A SHARE ON REVENUE OF 27 MILLION TOKOS A PROVIDER OF HOMEMONITORING SERVICES TO PREGNANT WOMEN SAID IT WOULD HAVE TO SUBTRACT 55 MILLION FROM REVENUE REPORTED OVER THE RECENT YEAR TO ACCOUNT FOR THE DISCREPANCIES BETWEEN BOOKED REVENUE AND ACTUAL REVENUE RANDALL HUYSER AN ANALYST AT FURMAN SELZ INC SAID THE COMPANY TOLD HIM THAT AS CERTAIN CONTRACTS WERE RENEWED A COMPUTER DEFAULTED TO SEND OUT BILLS WITH THE LIST PRICE INSTEAD OF THE ACTUALLY NEGOTIATED PRICE THE ANALYST SAID THIS KIND OF THING SHOULDN'T HAPPEN BUT HE DIDN'T THINK THE OVERSTATEMENT WAS DELIBERATE ELABORATING ON THE LOSS OF MOMENTUM IN THE QUARTER TOKOS BLAMED LESS THAN ANTICIPATED SALES IN A NEWLY ACQUIRED SUBSIDIARY A DECLINE IN REVENUE FROM RELATIVELY HIGHMARGIN SERVICES PROVIDED FOR WOMEN DIAGNOSED WITH PRETERM LABOR A DROP IN PATIENT REFERRALS AND RECENT CONTROVERSIES ABOUT SOME OF THE COMPANY'S PRODUCTS THE COMPANY SAID THESE FACTORS ARE PERSISTING IN THE CURRENT QUARTER AND IT EXPECTS TO REPORT A MODEST DECREASE IN NET REVENUE FOR THE FIRST QUARTER OF 1993 AFTER ADJUSTING FOR THE REVENUE OVERSTATEMENT TOKOS SAID ITS NET INCOME FOR THE RECENT YEAR WAS 65 MILLION OR 37 CENTS A SHARE A YEAR EARLIER RESTATED NET INCOME WAS 24 MILLION OR 14 CENTS A SHARE REFLECTING THE ACQUISITION OF A HEALTHCARE COMPANY REVENUE FOR 1992 WAS 1599 MILLION COMPARED WITH RESTATED REVENUE OF 1251 MILLION A YEAR EARLIER 9303190035 930319 INTERNATIONAL BRIEF LUFTHANSA AG CARRIER TRIMMED 1992 LOSSES BUT A DIVIDEND IS UNLIKELY LUFTHANSA AG GERMANY'S FLAGSHIP AIRLINE MANAGED TO REDUCE ITS PARENTCOMPANY LOSSES IN 1992 BUT ISN'T EXPECTED TO PAY A DIVIDEND IN A PRELIMINARY REPORT THE AIRLINE SAID ITS NET LOSS SHRANK 14 TO 380 MILLION MARKS 2287 MILLION FROM 444 MILLION MARKS IN 1991 FOR THE PARENT COMPANY ALONE SALES ROSE A PRELIMINARY 49 TO 15 BILLION MARKS FROM 143 BILLION MARKS LAST YEAR SENIOR LUFTHANSA EXECUTIVES MADE IT CLEAR THAT THE AIRLINE WOULD OMIT A SHAREHOLDER DIVIDEND FOR 1992 IF LOSSES PERSIST AS IS EXPECTED THE CARRIER HAD A LOSS IN 1991 FOR THE FIRST TIME IN DECADES THE COMPANY DIDN'T RELEASE ANY GROUPWIDE EARNINGS FIGURES IN ITS INTERIM REPORT A FULL REPORT IS DUE MAY 13 LUFTHANSA ALSO SAID IT ACHIEVED ITS WORK FORCE REDUCTION GOALS IN THE COURSE OF THE YEAR EMPLOYEE ROLLS WERE TRIMMED BY ABOUT 3 LEAVING THE PARENT COMPANY WITH 49292 EMPLOYEES AT THE END OF THE YEAR 9303190034 930319 ABREAST OF THE MARKET STOCKS JUMP 3890 POINTS IN RALLY SPARKED BY FALLING INTEREST RATES BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS RALLIED AS INTEREST RATES RECEDED SENT LOWER BY SOFT ECONOMIC NEWS AND A RATE CUT OVERSEAS IT WAS ALL INTEREST RATES SAID BRAD WEEKES A TRADER AT DONALDSON LUFKIN & JENRETTE IN RECENT SESSIONS RISING INFLATION PUSHED INTEREST RATES HIGHER AND SENT STOCK PRICES SLIDING BUT THE PATTERN REVERSED YESTERDAY THE YIELD ON THE TREASURY'S LONG BOND FOR EXAMPLE SLIPPED BACK BELOW 68 AFTER THE PHILADELPHIA FEDERAL RESERVE GAVE A WEAK REPORT ON THE REGION'S ECONOMY SAYING THE RATE OF GROWTH HAD SLOWED FROM EARLIER IN THE YEAR THE RATE PICTURE WAS ALSO HELPED BY GERMANY'S MOVE TO LOWER ITS DISCOUNT RATE BY 05 PERCENTAGE POINT TO 75 STOCKS SURGED FROM THE OPENING BELL BUT THEN LEVELED OFF WITH THEIR EARLY GAINS FOR MOST OF THE DAY SHARE PRICES CLIMBED AGAIN NEAR THE CLOSE OF TRADING PUSHING THE DOW JONES INDUSTRIAL AVERAGE BRIEFLY TO MORE THAN A 50POINT GAIN AND TRIGGERING THE NEW YORK STOCK EXCHANGE'S RULES RESTRICTING COMPUTERGUIDED PROGRAM BUYING THE MARKET ENDED ON A DOWNDRAFT HOWEVER AS STOCKS FELL BACK FROM THEIR LATESESSION HIGHS THE DOW JONES INDUSTRIAL AVERAGE ENDED WITH A GAIN OF 3890 TO 346564 STANDARD & POOR'S 500STOCK INDEX ADDED 358 TO 45189 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 179 TO 24912 ADVANCING STOCKS BEAT DECLINING STOCKS 1254 TO 652 BIG BOARD VOLUME TOTALED 240490000 SHARES UP FROM WEDNESDAY'S 237850000 SHARES DESPITE THE WEAK ECONOMIC NEWS AUTO MAKERS WERE ONE OF THE STRONGEST STOCK GROUPS FORD JUMPED 2 7/8 TO 51 5/8 AFTER SALOMON BROTHERS RAISED ITS EARNINGS ESTIMATES FOR THE COMPANY GENERAL MOTORS ROSE 1 TO 39 3/4 AND CHRYSLER WAS UP 5/8 TO 39 7/8 PEOPLE WHO ARE EMPHASIZING WEAK SPOTS IN THE ECONOMY ARE FORGETTING THAT THE FOURTH QUARTER WAS UNSUSTAINABLY STRONG AND SOME GIVEBACK OF THAT STRENGTH IS NO CAUSE FOR ALARM SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH FOR ARGUS RESEARCH HE WARNED THAT BONDS ARE PROBABLY NEAR THEIR PEAK AND INTEREST RATES NEAR THEIR BOTTOM MEANING STOCKS HOLD GREATER POTENTIAL FOR INVESTORS AT THIS POINT HE NOTED THAT MANY ECONOMICALLY SENSITIVE STOCKS SUCH AS THE AUTOS DID WELL YESTERDAY THE GREATEST GAINS IN THE MONTHS AHEAD WILL BE IN CYCLICAL STOCKS THAT WILL BENEFIT FROM A LEVERAGED GAIN IN EARNINGS HE SAID GOLD STOCKS CONTINUED TO RALLY DESPITE THE SLIP IN BOND YIELDS HOMESTAKE MINING ROSE 3/8 TO 13 3/8 AND BATTLE MOUNTAIN GOLD ADDED 1/8 TO 6 5/8 OTHER CYCLICAL GROUPS THAT GAINED INCLUDED BUILDING MATERIAL STOCKS AND COMMODITY CHEMICAL STOCKS AMONG BUILDING MATERIAL COMPANIES MASCO'S SHARES RALLIED 1 1/8 TO 34 1/8 SHERWINWILLIAMS ROSE 5/8 TO 32 1/2 AND ARMSTRONG WORLD INDUSTRIES GAINED 7/8 TO 34 CHEMICAL MAKER UNION CARBIDE ROSE 5/8 TO 17 AND DU PONT JUMPED 1 1/4 TO 47 7/8 SOME TRADERS SUGGESTED TODAY'S EXPIRATION OF STOCKINDEX FUTURES STOCKINDEX OPTIONS AND OPTIONS ON INDIVIDUAL STOCKS MIGHT HAVE PLAYED A PART IN YESTERDAY'S LATE VOLATILITY THE QUARTERLY EXPIRATIONS REFERRED TO AS TRIPLE WITCHING OFTEN TRIGGER SHARP SWINGS IN SHARE PRICES TOBACCO STOCKS SLIPPED FURTHER OVER FEARS THAT SIN TAXES COULD TRIM THE INDUSTRY'S GROWTH PHILIP MORRIS EASED 1/8 TO 64 1/8 AND RJR NABISCO SLID 1/8 TO 8 1/8 ANHEUSERBUSCH WHICH MIGHT ALSO FIND SOME OF ITS PRODUCTS SUBJECT TO NEW TAXES REBOUNDED 1 5/8 TO 52 3/8 IN HEAVY TRADING THE COMPANY SAID IT STILL THINKS ITS EARNINGS WILL GROW AT A DOUBLEDIGIT RATE IN 1993 DESPITE A SLUMP IN FIRSTQUARTER PROFIT AFTER ANNOUNCING WEDNESDAY THAT FIRSTQUARTER EARNINGS WOULD BE DOWN ABOUT 7 THE COMPANY'S STOCK WAS HALTED AND DIDN'T REOPEN FOR TRADING WEDNESDAY AT THE TIME OF THE HALT THE STOCK WAS DOWN 2 1/4 POINTS KEMPER CORP LEAPT 5 3/8 TO 36 5/8 THE COMPANY AGREED TO SWAP STOCK OF ITS REINSURANCE AND RISK MANAGEMENT UNITS FOR MOST OF LUMBERMENS MUTUAL'S OWNERSHIP IN KEMPER MAC FRUGAL'S ADDED 1 5/8 TO 18 3/4 THE COMPANY'S FOURTHQUARTER PROFIT TOTALED 78 CENTS A SHARE COMPARED WITH 67 CENTS A SHARE A YEAR EARLIER POPE & TALBOT GAINED 2 1/2 TO 28 1/8 THE COMPANY SAID IT EXPECTS FIRSTQUARTER EARNINGS TO EXCEED 75 CENTS A SHARE AS A RESULT OF A DRAMATIC INCREASE IN LUMBER PRICES SINCE YEAREND IN THE YEAREARLIER FIRST QUARTER THE COMPANY EARNED ONE CENT A SHARE AMERICAN STOCK EXCHANGE VOLUME TOTALED 20530000 SHARES COMPARED WITH 19180000 WEDNESDAY THERE WERE 301 ISSUES ADVANCING 252 DECLINING AND 211 UNCHANGED 9303190033 930319 INTERNATIONAL ITALY'S CIGA SEEKS RESTRUCTURING MILAN CIGA SPA A DEBTLADEN ITALIAN HOTEL GROUP SAID IT PLANS TO PUT MUCH OF ITS MANAGEMENT INTO THE HANDS OF MEDIOBANCA FOR SIX MONTHS AS THE MILAN MERCHANT BANK WORKS OUT A RESTRUCTURING PLAN FOR IT CIGA IS PARTLY OWNED BY ISHMAELITE MUSLIM LEADER KARIM AGA KHAN PREVIOUSLY A POOL OF CIGA'S CREDITOR BANKS ASKED FOR A RESTRUCTURING PLAN THAT WOULD GET THE GROUP WHOSE DEBTS ARE ABOUT 1 TRILLION LIRE 6222 MILLION BACK ON ITS FEET YESTERDAY CIGA SAID THAT CONSOLIDATED REVENUE IN 1992 ROSE 10 TO 510 BILLION LIRE FROM 462 BILLION LIRE THE YEAR BEFORE 9303190032 930319 INQUIRY FOCUSES ON EXTRADER OF FOREIGN DEBT BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THREE YEARS AGO DANNY YOUNG WAS A RISING STAR AT MANUFACTURERS HANOVER CORP GENERATING TENS OF MILLIONS OF DOLLARS IN PROFITS TRADING THE DEBT OF CHILE YUGOSLAVIA AND OTHER DEVELOPING NATIONS NOW THE 30YEAROLD HARVARD BUSINESS SCHOOL STUDENT HAS LEARNED THAT HE'S A FOCUS OF A FEDERAL INQUIRY INTO THE BOOMING AND LARGELY UNREGULATED MARKET IN DEVELOPINGCOUNTRY DEBT INVESTIGATORS FROM THE FEDERAL RESERVE AND THE MANHATTAN DISTRICT ATTORNEY'S OFFICE ARE TRYING TO FIGURE OUT WHETHER MR YOUNG REAPED ILLEGAL PROFITS TRADING COLOMBIAN OBLIGATIONS JUST AFTER HE WAS FIRED FROM HIS TRADING JOB AT MANUFACTURERS HANOVER IN JANUARY 1991 MORE BROADLY GOVERNMENT INVESTIGATORS ARE TRYING TO DETERMINE WHETHER THERE WERE SYSTEMATIC TRADING ABUSES IN THE THIRD WORLD OBLIGATIONS WHICH WERE THE SOURCE OF MAMMOTH TRADING PROFITS IN 1990 AND 1991 ACCORDING TO PEOPLE CLOSE TO THE INQUIRY INVESTIGATORS HAVE TOLD MR YOUNG THAT HE IS A SUBJECT OF THE INVESTIGATION INDICATING THAT HE COULD LATER BECOME A TARGET AND MAY EVEN RUN THE RISK OF INDICTMENT MR YOUNG'S LAWYER JAMES MAGUIRE OF CHICAGOBASED MAYER BROWN & PLATT DECLINED TO COMMENT ON THE GOVERNMENT'S PROBE OF COURSE MR YOUNG MAY NOT HIMSELF BE CHARGED WITH ANY WRONGDOING BUT COULD PROVIDE THE INVESTIGATION WITH A CLOSER LOOK AT THE SPECIALIZED BUT HIGHLY LUCRATIVE MARKET IN THIRD WORLD DEBT OBLIGATIONS WHERE TURNOVER IS EXPECTED TO EXCEED 600 MILLION THIS YEAR SO FAR THE INQUIRY APPEARS TO BE CONCENTRATED ON BANKERS AND TRADERS WHO MAY HAVE PROFITED FOR THEIR OWN ACCOUNTS AT THE EXPENSE OF THE BANKS THEY WORKED FOR IN MR YOUNG'S CASE INVESTIGATORS ARE LOOKING INTO WHETHER HIS INDEPENDENT TRADING OPERATIONS PROFITED FROM TRANSACTIONS HE MAY HAVE ARRANGED WHILE HE WAS WORKING AT MANUFACTURERS HANOVER OR MAY HAVE STEERED FROM THE OUTSIDE AFTER HE LEFT ONE OF THE THINGS THAT GOVERNMENT INVESTIGATORS APPARENTLY WANT TO KNOW MORE ABOUT IS WHY MR YOUNG WAS FORCED OUT OF MANUFACTURERS HANOVER WHICH WAS MERGED WITH CHEMICAL BANKING CORP IN 1991 MR YOUNG HIS LAWYER AND OFFICIALS FROM MANUFACTURERS HANOVER ALL DECLINED TO SAY WHY THE YOUNG TRADER WAS FORCED OUT AFTER LEAVING THE BANK MR YOUNG TRADED DEVELOPINGCOUNTRY LOANS FOR HIS OWN ACCOUNT BEFORE ENROLLING IN HARVARD BUSINESS SCHOOL THE FOLLOWING FALL GOVERNMENT INVESTIGATORS ARE FOCUSING ON SECTION 673 OF THE NEW YORK STATE BANKING LAW ACCORDING TO TWO INDIVIDUALS INTERVIEWED BY PEOPLE FROM THE FED AND THE DISTRICT ATTORNEY'S OFFICE THIS SECTION COVERS ABSTRACTION OR MISAPPROPRIATION OF MONEY FUNDS OR PROPERTY AND THE MISAPPLICATION OF CREDIT OF PRIVATE BANKERS OR CORPORATIONS BY BANK OFFICERS OR THEIR AGENTS THOSE WHO WILLFULLY MISAPPLY ARE GUILTY OF A FELONY THE STATUTE SAYS THE LAW APPARENTLY OFFERS WIDE LATITUDE FOR PROSECUTION OF BANKERS OR EVEN FORMER BANKERS WHO MAY HAVE PROFITED FROM THEIR BANKS' DISTRESS SALES OF DEBT INQUIRIES INTO MR YOUNG'S TRADING HAVE FOCUSED ON TRANSACTIONS THAT TOOK PLACE IN COLOMBIA'S FOREIGN BANK LOANS IN MARCH 1991 SOON AFTER LEAVING MANUFACTURERS HANOVER MR YOUNG AND AT LEAST ONE COINVESTOR BOUGHT AS MUCH AS ONE MILLION MARKS IN GERMAN MARKDENOMINATED COLOMBIAN CREDITS FOR THE EQUIVALENT OF ABOUT 675 CENTS FOR EACH DOLLAR FACE VALUE OF DEBT THE DEBT WAS SOLD IN LATE 1991 FOR 92 CENTS FOR EACH DOLLAR FACE AMOUNT MR YOUNG AND HIS PARTNERS BOUGHT THE COLOMBIAN DEBT FROM TRITECH A SMALL PARTNERSHIP MANAGED BY THREE FORMER MANUFACTURERS HANOVER OFFICERS TRITECH WHICH ISN'T CONNECTED WITH A NEW JERSEY CONSTRUCTIONSCHEDULING COMPANY OF THE SAME NAME IN TURN ACQUIRED A TOTAL OF SIX MILLION MARKS OF THE COLOMBIAN DEBT FROM MANUFACTURERS HANOVER AT THE END OF NOVEMBER 1990 ACCORDING TO PEOPLE FAMILIAR WITH THE TRANSACTIONS MR YOUNG STILL WORKED FOR THE BANK AT THAT TIME TRITECH REPORTEDLY BID FOR THE LOANS AGAINST TWO OTHER CONTENDERS AND OFFERED THE HIGHEST PRICE OF 675 CENTS PER DOLLAR FACE VALUE OF DEBT SOME AT MANUFACTURERS HANOVER APPARENTLY THOUGHT THE BANK SHOULD HAVE WAITED FOR THE LOANS TO APPRECIATE FURTHER RATHER THAN SELL OTHERS SAY THE CRITICISM WAS MADE WITH THE BENEFIT OF 20/20 HINDSIGHT MOREOVER PEOPLE INVOLVED IN THE COLOMBIAN TRANSACTIONS MAINTAIN THAT THE LOANS SOLD TO TRITECH WEREN'T FROM MANUFACTURERS HANOVER'S OWN LOAN PORTFOLIO BUT WERE BOUGHT ON THE MARKET NOT LONG BEFORE THEY WERE SOLD THE SURGE IN VALUE FOR THE THIRD WORLD LOANS CONCLUDED A PROTRACTED TRAUMA FOR THE US BANKING INDUSTRY IN THE LATE 1980S BANKS MADE HUGE PROVISIONS AGAINST THEIR BANK LOANS TO DEVELOPING COUNTRIES AND WEATHERED SHARP DECLINES IN PROFIT AND SHARE PRICES MANUFACTURERS HANOVER FOR EXAMPLE MADE A PROVISION OF 18 BILLION AGAINST ITS DEVELOPING COUNTRY LOANS IN JUNE 1987 FOLLOWING A PRECEDENTSETTING 3 BILLION PROVISION MADE BY CITICORP MOST BIG BANKS MADE FURTHER PROVISIONS THE FOLLOWING YEAR MANY TRADERS AND ANALYSTS LATER TOOK THE VIEW THAT THE BIG BANKS MAY HAVE BEEN PANICKED INTO AN OVERLY PESSIMISTIC ASSESSMENT INDEED TRADERS REAPED HEAPING PROFITS BUYING UP THE LOANS AND WAITING FOR THEIR VALUE TO APPRECIATE IF IT TURNS OUT THAT CURRENT AND FORMER BANKERS PERSONALLY PROFITED FROM THE DEBT PROVISIONS MADE BY BANKS WHICH HURT SHAREHOLDERS IT COULD SPARK A WAVE OF LITIGATION ACCORDING TO PEOPLE FAMILIAR WITH THE INQUIRY THE INVESTIGATORS HAVE SUBPOENAED 1990 TAPES FROM THE BANK'S LONDON OFFICE THAT INCLUDE REMARKS MADE BY MR YOUNG ABOUT THE COLOMBIAN DEBT PEOPLE FAMILIAR WITH THE DEBT MARKETS AT THE TIME SAY THAT NOBODY AT THE BANK UNDERSTOOD THE VALUE OF THE COLOMBIAN DEBT AS WELL AS MR YOUNG SOME OF MANUFACTURERS HANOVER'S TAPES FROM THE BANK'S NEW YORK OFFICE RELATING TO MR YOUNG'S TRADING HAVE BEEN DESTROYED ACCORDING TO PEOPLE FAMILIAR WITH THE INQUIRY MANUFACTURERS HANOVER DECLINED TO COMMENT ON THESE ASPECTS OF THE INVESTIGATION THE BANK ALSO DECLINED TO DISCUSS ITS DEBT TRADING ARRANGEMENTS OR MR YOUNG'S ROLE THERE ACCORDING TO CLOSE ASSOCIATES MR YOUNG HAD SEVERAL TIMES ASKED FOR MANUFACTURERS HANOVER'S PERMISSION TO TRADE DEBT FOR HIS OWN ACCOUNT BUT HAD NEVER GOTTEN A CLEAR ANSWER THESE ASSOCIATES SAID THE REQUESTS LED SOME OF MR YOUNG'S BOSSES TO SUSPECT THAT HE WAS PUTTING HIS OWN INTERESTS BEFORE THOSE OF THE BANK SEPARATELY DURING HIS STINT IN MANUFACTURERS HANOVER'S LONDON OFFICE MR YOUNG HAD BEEN INVOLVED IN A CONTROVERSIAL SET OF TRADES IN YUGOSLAV OBLIGATIONS AS REPORTED IN AN EARLIER WALL STREET JOURNAL ARTICLE THE CENTRAL BANK OF FORMER YUGOSLAVIA TOLD A LONDONBASED UNIT OF MANUFACTURERS HANOVER ON JUNE 19 1990 THAT IT WISHED TO POSTPONE BY SIX MONTHS THE DATE WHEN BANKS COULD CONVERT A PARTICULAR YUGOSLAV GOVERNMENT CREDIT INTO LOANS TO OTHER YUGOSLAV BORROWERS MANUFACTURERS HANOVER'S LONDON OFFICE AS AGENT BANK FOR THOSE LOANS DIDN'T NOTIFY OTHER BANKS INVOLVED IN THOSE CREDITS UNTIL TWO DAYS LATER WHEN THE YUGOSLAV MOVE DID BECOME KNOWN PUBLICLY IT CAUSED THE MARKET FOR THOSE CREDITS TO DRY UP IN THE INTERVENING PERIOD MANUFACTURERS HANOVER HAD SOLD 3 MILLION OF THE SAME LOAN ACCORDING TO TRADERS MR YOUNG HAD BEEN INVOLVED IN SELLING THESE LOANS ASSOCIATES SAID A MANUFACTURERS HANOVER SPOKESMAN MAINTAINED IN LATE 1990 THAT THE BANK'S SALE OF THIS PARTICULAR YUGOSLAV PAPER WAS PURE COINCIDENCE IT WOULD BE COMPLETELY ERRONEOUS AND IRRESPONSIBLE TO SUGGEST THAT A TRADE WAS TRANSACTED ON INSIDE INFORMATION THE BANK REAFFIRMED THIS POSITION THIS WEEK MR YOUNG LEARNED OF THE INVESTIGATORS' INTEREST IN 1992 WHEN HE WAS SPENDING A SUMMER AWAY FROM HARVARD WORKING FOR SHEARSON LEHMAN BROTHERS IN NEW YORK INVESTIGATORS FROM THE MANHATTAN DISTRICT ATTORNEY'S OFFICE SHOWED UP AT HIS OFFICE WITH A SUBPOENA ASKING TO TALK TO HIM ABOUT HIS DEBT TRADING ACTIVITIES SINCE THEN MR YOUNG AND HIS LAWYER HAVE BEEN DEALING WITH PERIODIC INQUIRIES FROM GOVERNMENT INVESTIGATORS HIS BUSINESSSCHOOL GRADES HAVE DECLINED AND HE REPORTEDLY WORRIES ABOUT WHETHER HE'LL BE ABLE TO FINISH HIS STUDIES 9303190031 930319 MARKETING & MEDIA NOTED WHO'S NEWS NEWS CORP'S TWENTIETH CENTURY FOX UNIT SIGNED STEPHEN CHAO FORMER PRESIDENT OF FOX NEWS TO AN EXCLUSIVE TWOYEAR CONTRACT TO DISTRIBUTE FILMS THAT HE PRODUCES MR CHAO 36 ROSE TO PROMINENCE AT FOX NEWS BY HELPING CREATE SOCALLED TABLOID TV SHOWS BUT HE WAS FIRED IN JUNE FOR HIRING A MALE STRIPPER TO APPEAR DURING A SPEECH MR CHAO GAVE ON CENSORSHIP AT A NEWS CORP SEMINAR 9303190030 930319 BUSINESS BRIEF SIERRA ONLINE INC SOFTWARE CONCERN LAYS OFF 60 WORKERS PLANS CHARGE SIERRA ONLINE INC OAKHURST CALIF SAID IT LAID OFF 60 OF ITS 500 EMPLOYEES IN A COSTREDUCTION STEP THAT WILL RESULT IN A ONETIME CHARGE OF 900000 FOR ITS FOURTH QUARTER ENDED MARCH 31 BECAUSE OF THE LAYOFFS AND CONTINUING LOSSES AT ITS COMPUTER ENTERTAINMENT NETWORK THE COMPANY SAID IT WILL POST A WIDERTHANEXPECTED LOSS FOR ITS FOURTH QUARTER ANALYSTS HAD EXPECTED SIERRA ONLINE A MAKER OF COMPUTER GAMES THAT ROSE TO PROMINENCE ON THE STRENGTH OF SOME HIT TITLES TO RECORD A LOSS OF 10 TO 20 CENTS A SHARE BUT NOW THE LOSS COULD EXCEED 30 CENTS A SHARE THE COMPANY HAS 74 MILLION SHARES OUTSTANDING IN THE QUARTER A YEAR EARLIER SIERRA ONLINE EARNED 281000 OR FIVE CENTS A SHARE ON REVENUE OF 99 MILLION SIERRA ONLINE SAID THAT SALES OF ITS SOFTWARE GAMES ARE HEALTHY BUT THAT IT CONTINUES TO INCUR LOSSES WITH ITS COMPUTER ENTERTAINMENT NETWORK THE COMPANY SAID THAT REVENUE FROM THE NETWORK DOUBLED DURING THE QUARTER BUT COSTS ASSOCIATED WITH GAINING SUBSCRIBERS AND PROVIDING SERVICES ROSE AS WELL 9303190029 930319 TECHNOLOGY & MEDICINE MERCK & CO OFFERS DISCOUNT ON DRUGS FOR CHOLESTEROL BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MERCK & CO TEMPORARILY CUT THE PRICE OF ITS TWO CHOLESTEROLLOWERING DRUGS A SIGN OF PRICE COMPETITION OVER THE BIGSELLING MEDICATIONS MERCK WHITEHOUSE STATION NJ TOLD CUSTOMERS IT WAS MAKING A TWOWEEK OFFER OF DISCOUNTS AMOUNTING TO ABOUT 4 FOR MEVACOR AND ZOCOR THE ROLLBACK BRINGS MEVACOR'S PRICE DOWN TO ITS FEBRUARY 1991 LEVEL OF ABOUT 147 A DAY FOR THE COMMONLY PRESCRIBED 20 MILLIGRAM DOSE AND ZOCOR TO ITS INTRODUCTORY PRICE OF 133 A DAY FOR THE 10 MILLIGRAM DOSE THE OFFER WHICH APPLIES TO ANY CUSTOMER THAT BUYS DIRECTLY FROM MERCK BUT ISN'T COVERED BY A CONTRACT BEGAN TUESDAY AND RUNS THROUGH MARCH 31 COMPETITION FROM BRISTOLMYERS SQUIBB CO'S CHOLESTEROL DRUG PRAVACHOL PROMPTED THE MOVE A MERCK SPOKESMAN SAID SUCH A PRICE ROLLBACK IS UNPRECEDENTED FOR MERCK WHICH HASN'T ENGAGED IN DIRECT PRICE COMPETITION IN THE PAST SAID JOSEPH RICCARDO AN ANALYST AT BEAR STEARNS BRISTOLMYERS NEW YORK DECLINED TO COMMENT ON MERCK'S OFFER OR WHETHER IT WOULD RESPOND WITH ITS OWN DISCOUNT IT RECENTLY RAISED PRAVACHOL'S PRICE TO WHOLESALERS BY 4 TO 138 FOR THE 20 MILLIGRAM DOSE BUT THE COMPANY IS ALLOWING CUSTOMERS TO PLACE ONE ORDER AT THE LOWER PRICE MERCK'S DISCOUNT IS A SIGN OF COMPETITIVE PRESSURES LOWERING THE PRICES OF SOME DRUGS EVEN AS THE WHITE HOUSE CONSIDERS GOVERNMENT INTERVENTION TO ACCOMPLISH THE SAME RESULT OVERALL DRUG PRICES ROSE 57 LAST YEAR MEVACOR WITH US SALES OF ABOUT 1 BILLION LAST YEAR GARNERED AN ESTIMATED 44 OF THE MARKET FOR THE CHOLESTEROL DRUGS BUT THE INTRODUCTION OF LOWERPRICED SIMILAR DRUGS SUCH AS PRAVACHOL AND MERCK'S OWN ZOCOR HAVE BEGUN TO CHIP AWAY AT MEVACOR'S DOMINANCE SINCE 1991 MEVACOR'S SHARE OF NEW PRESCRIPTIONS AN INDICATION OF FUTURE SALESHAS FALLEN TO ABOUT 41 FROM 48 WHILE PRAVACHOL HAS CAPTURED ABOUT 12 OF THE MARKET SAID HEMANT SHAH AN INDEPENDENT ANALYST ANALYSTS WERE SURPRISED BY MERCK'S MOVE D LARRY SMITH OF HAMBRECHT & QUIST SAID MERCK MAY BE TRYING TO INDUCE WHOLESALERS AND OTHER CUSTOMERS TO STOCK UP TO BOOST FIRSTQUARTER SALES HOWEVER THE SMALL DISCOUNT AND LIMIT ON QUANTITIES THAT A CUSTOMER CAN PURCHASE DURING THE OFFER DOESN'T PROVIDE MUCH OF AN INCENTIVE HE SAID MORE LIKELY MR SMITH SAID THE DISCOUNT IS A RESPONSE TO BRISTOLMYERS'S HUGE PROMOTIONAL PUSH BEHIND PRAVACHOL MERCK SHARES HAVE FALLEN 7 SINCE LAST FRIDAY'S CLOSE TO 36375 A SHARE ON THE NEW YORK STOCK EXCHANGE YESTERDAY 9303190028 930319 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED MARCH 12 ACCOUNTED FOR 127 OR AN AVERAGE 34 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 144 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 466 INVOLVED STOCKINDEX ARBITRAGE UP FROM 35 THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 519 OF PROGRAM TRADING WAS FOR CUSTOMERS WHILE 379 REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 102 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES FIRST BOSTON AND SUSQUEHANNA DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND MERRILL LYNCH DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9303190027 930319 FEW PEOPLE LIKE FREQUENT FLIERS WHEN THEY LAND ON THE DOORSTEP BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BIG APPLE RESIDENTS LONG FED UP WITH SEEING MENUS EVERYWHERE ARE HUNGRY FOR ACTION THEY WANT TO TAKE IN TAKEOUTRESTAURANT DELIVERYMEN TO BE BOOKED FOR LITTERING HUGH KARRAKER FOR ONE PLOTS A STAKEOUT FOR THESE MEN WITH THEIR STEAMING FOOD AND TAKEOUT MENUS WE'RE GOING TO FIGURE OUT SOME WAY TO HAVE A BEAT COP ON HAND CAPTURE ONE OF THESE MENU GUYS AND BOOK HIM HE SAYS HALF SERIOUSLY MR KARRAKER AN ACTOR ISN'T TRYING TO FILL CHARLES BRONSON'S SHOES HE'S JUST A CITY DWELLER DETERMINED TO DEFEND HIS HOME FROM A PERSISTENT URBAN SCOURGE HANDBILLS IN GENERAL AND CHINESERESTAURANT MENUS IN PARTICULAR RELENTLESSLY SHOVED UNDER RESIDENTIAL DOORS HE'S NOT ALONE IT'S TOUGH ENOUGH IN THIS CITY GROUSES SAUL LAPIDUS A BROWNSTONE OWNER IN MANHATTAN'S UPPER WEST SIDE YOU SHOULDN'T BE DELUGED WITH THIS STUFF IN YOUR HOME POLICE CAPT LEWIS MANETTA ALSO TAKES THE MENU FLAP SERIOUSLY PEOPLE LIVE WITH CRIME HE SAYS BUT THESE QUALITYOFLIFE ISSUES REALLY BUG THEM FOR YEARS ANTIPAPER ACTIVISTS TRIED PASSIVE RESISTANCE STICKING NO MENUS SIGNS ON THEIR DOORS THAT WITH TIME BECAME MORE ELABORATE REPLETE WITH DRAWINGS CHINESE TRANSLATIONS AND THREATS OF BOYCOTT COMPLAINTS WERE CALLED IN TO THE ESTABLISHMENTS AND LETTERS DISPATCHED TO CITY OFFICIALS LAST SUMMER TAKING MOREDIRECT ACTION MR KARRAKER AND SOME FRIENDS TORE UP A COLLECTION OF UNWANTED MENUS FROM EMPIRE SZECHUAN GOURMET A FREQUENT TARGET OF COMPLAINTS AND AT DINNERTIME SCATTERED THE PIECES ALL OVER THE MANHATTAN RESTAURANT'S CROWDED DINING ROOM SOME DINERS BOOED BUT OTHERS APPLAUDED HE SAYS THE SELFSTYLED MENU WARRIORS HAVE SINCE STAGED TWO OTHER SUCH DEMONSTRATIONS FINALLY IN DECEMBER MR LAPIDUS FILED CHARGES WITH THE POLICE AGAINST JAMES SHAU A MANAGER OF EMPIRE SZECHUAN ALLEGING THAT HE VIOLATED A SELDOMENFORCED LITTER LAW BUT A JUDGE THIS WEEK DISMISSED THE CASE ON THE GROUND THAT MR SHAU HIMSELF DIDN'T LEAVE THE MENUS ON MR LAPIDUS'S FLOOR HELP MIGHT BE ON THE WAY SCOTT STRINGER A STATE ASSEMBLYMAN HAS DRAFTED A BILL ON COMMERCIAL FLIERS TO MAKE EMPLOYERS LIABLE FOR EMPLOYEES' ACTIONS AND RAISE THE LITTERING PENALTY TO BETWEEN 250 AND 1000 FROM 50 TO 250 9303190026 930319 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH CERTAIN DATA SERVICES SLATED TO BE OFFERED TO MORE SITES AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK SAID IT WILL MAKE AVAILABLE TO 10 ADDITIONAL COUNTRIES CERTAIN DATA SERVICES THAT ARE TRANSMITTED OVER PUBLIC PHONE LINES THE INTERSPAN FRAME RELAY AND RELATED SERVICES MAKE AVAILABLE TO ANY BUSINESS HIGHSPEED COMPUTER COMMUNICATIONS AND SPECIAL CUSTOMERSERVICE TELEPHONE LINES INTERSPAN IN PARTICULAR ELIMINATES CUMBERSOME DATAERROR CORRECTION EQUIPMENT ALLOWING COMPANIES TO TRANSMIT DATA AT VERY HIGH SPEED THE SERVICE ALREADY AVAILABLE IN THE US AND SEVEN EUROPEAN COUNTRIES WILL BE OFFERED BEGINNING IN JULY IN CONTROLLED INTRODUCTION TO CUSTOMERS IN CANADA IRELAND AUSTRIA PORTUGAL SWITZERLAND DENMARK ITALY LUXEMBOURG FINLAND AND NORWAY WITH GENERAL AVAILABILITY LATER IN THE THIRD QUARTER OF 1993 AT&T SAID 9303190025 930319 NATIONAL BANK OF CANADA MONTREAL NATIONAL BANK OF CANADA SAID IT WILL FILE A PRELIMINARY SHORT FORM PROSPECTUS FOR THE DISTRIBUTION IN CANADA OF 182 MILLION COMMON SHARES FOR A TOTAL OF 1502 MILLION CANADIAN DOLLARS US120 MILLION TO RAISE TIER I CAPITAL THE BANK WILL HAVE 1465 MILLION SHARES OUTSTANDING AFTER THE ISSUE A GROUP LED BY LEVESQUE BEAUBIEN GEOFFRION INC WILL ACT AS UNDERWRITERS 9303190024 930319 TWO HOUSE BILLS AIM TO OVERHAUL CREDIT REPORTS TALES OF EXASPERATION BRING LEGISLATION TO REVAMP THE 23YEAROLD LAWS BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL LIKE THOUSANDS OF OTHER CONSUMERS MARY BETH BUTLER HAD A BLACK MARK ON HER CREDIT REPORT BUT WHEN SHE CHECKED IT OUT SHE LEARNED THAT IT STEMMED FROM AN ALLEGED DEFAULT ON A LINE OF CREDIT OPENED WHEN SHE WAS THREE YEARS OLD MORE EXASPERATING STILL SHE COULDN'T MANAGE TO CLEAR THE ERRONEOUS INFORMATION FROM HER REPORT FOR TWO YEARS AND DURING THAT TIME IT KEPT POPPING UP TO SPOIL VARIOUS APPLICATIONS FOR CREDIT SIMILAR TALES FROM HUNDREDS OF OTHER CONSUMERS HAVE PROMPTED THE INTRODUCTION OF TWO BILLS IN THE HOUSE AIMED AT OVERHAULING THE 23YEAROLD LAWS THAT REGULATE THE CREDIT REPORTING INDUSTRY BACKERS OF THE CHANGES ARGUE THAT THE OLD SAFEGUARDS PLUS SOME RECENT REFORM EFFORTS BY THE INDUSTRY AREN'T SUFFICIENT FOR A BUSINESS THAT TRACKS MORE THAN 200 MILLION FILES AND DETERMINES WHETHER THOUSANDS OF INDIVIDUALS DO OR DO NOT HAVE ACCESS TO CREDIT A BILL SPONSORED BY REP ESTEBAN TORRES D CALIF WOULD PROVIDE CONSUMERS FREE ANNUAL REPORTS AND EXPAND LIABILITY FOR INCORRECT INFORMATION TO BANKS AND OTHER LENDERS IT ALSO WOULD PROHIBIT CREDIT BUREAUS FROM SELLING PRESCREENED LISTS TO MARKETERS MEANWHILE STATES COULD CREATE THEIR OWN LEGISLATION REGULATING CREDIT INFORMATION BUREAUS THE PROBLEMS CONTINUE UNABATED PROBABLY BECAUSE OF THE LACK OF LEGISLATION SAYS REP TORRES REP AL MCCANDLESS R CALIF HAS REVIVED ANOTHER BILL THAT DIED IN COMMITTEE LAST YEAR THIS MEASURE LIKE THE TORRES BILL WOULD REQUIRE DISPUTES TO BE RESOLVED WITHIN 30 DAYS AND PROHIBIT THE REPORTING OF INACCURATE CREDIT INFORMATION BUT IT WOULD BAR STATES FROM PASSING SEPARATE BILLS ON THE GROUNDS THAT A FLURRY OF STATE REGULATIONS WOULD HOGTIE CREDIT BUREAUS' NATIONAL NETWORKS THE BILL WOULDN'T REQUIRE FREE ANNUAL REPORTS TO CONSUMERS AND WOULD ALLOW CREDIT BUREAUS TO CONTINUE SELLING MARKETING LISTS THE DEBATE OVER WHETHER FEDERAL RULES WOULD PREEMPT STATE REGULATIONS ULTIMATELY KILLED THE BILL LAST YEAR AND COULD DO SO AGAIN THIS YEAR BUT BACKERS OF THE TORRES BILL HOPE AN INFLUX OF MORE LIBERAL LAWMAKERS WILL PREVENT IT FROM HAPPENING AGAIN IT'S A MAJOR PRIORITY AND I THINK THE CLIMATE IS GOOD TO PASS THIS BILL SAYS MR TORRES THE BILL IS GETTING SOME STRONG SUPPORT FROM AN ASSOCIATION OF STATE ATTORNEYS GENERAL WHO SAY THEY CONTINUE TO BE INUNDATED WITH COMPLAINTS MOREOVER THE FEDERAL TRADE COMMISSION SAYS PROBLEMS INVOLVING CREDIT REPORTING AGENCIES REMAIN THE NO 1 CONSUMER COMPLAINT ONE OF THE MOST FREQUENTLY CITED FRUSTRATIONS IS THE LENGTH OF TIME REQUIRED TO CLEAR UP CREDIT MIXUPS BRIAN ROGERS AN INVESTMENT MANAGER AND FORMER BANKER SPENT TWO YEARS TRYING TO CLEAR HIS CREDIT REPORT BECAUSE THE ERROR KEPT CROPPING UP AFTER HE THOUGHT IT WAS CORRECTED DURING THAT TIME MR ROGERS LIKE MS BUTLER WAS TURNED DOWN FOR CREDIT APPLICATIONS PAUL PARKS ESTIMATES THAT A TAX LIEN THAT ERRONEOUSLY SHOWED UP ON HIS CREDIT REPORT COST HIM 400000 WHEN LOAN APPLICATIONS FOR HIS BUSINESS WERE TURNED DOWN INDUSTRY OFFICIALS CLAIM MAJOR STEPS HAVE BEEN TAKEN TO IMPROVE QUALITY CONTROL AND CONSUMER SERVICE THE CREDIT REPORTING TRADE ORGANIZATION ASSOCIATED CREDIT BUREAUS SUPPORTS THE MCCANDLESS BILL BUT CONTENDS THAT MANY OF THE PROPOSALS IN THE NEW BILL ARE ALREADY BEING CARRIED OUT BY THE INDUSTRY'S THREE PRINCIPAL NETWORKS TRANS UNION CORP TRW INC AND EQUIFAX INC THE IMPROVEMENTS INCLUDE 800 NUMBERS AT ALL THREE CONCERNS TO HANDLE COMPLAINTS FREE REPORTS FOR PEOPLE WHO ARE DENIED CREDIT AND A FREE REPORT TO SHOW CHANGES MADE AFTER INVESTIGATIONS LAWMAKERS RECOGNIZE SOME IMPROVEMENT BUT THEY WANT TO LOCK IN THE REFORMS THROUGH LEGISLATION SAYS ALBERT JACQUEZ REP TORRES'S CHIEF OF STAFF A LOT OF PEOPLE VOLUNTARILY GO ON DIETS BUT THEY DON'T STAY ON THEM 9303190023 930319 US AUDITORS SAY RTC MADE COSTLY CONTRACTING ERRORS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL AUDITORS ACCUSED THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY OF ADDITIONAL COSTLY CONTRACTING LAPSES CRITICISM OF THE AGENCY THE RESOLUTION TRUST CORP CAME FROM THE GENERAL ACCOUNTING OFFICE AND THE RTC'S OWN INSPECTOR GENERAL IN TESTIMONY BEFORE A HOUSE FINANCIAL INSTITUTIONS SUBCOMMITTEE COMPTROLLER GENERAL CHARLES BOWSHER WHO HEADS THE GAO THE INVESTIGATIVE ARM OF CONGRESS SAID HIS AUDITORS HAD FOUND ADDITIONAL FAULTY RTC CONTRACTING PROCEDURES RELATED TO HOMEFED SAVINGS BANK SAN DIEGO THE PROBLEMS INCLUDED FAILURE TO REDUCE CERTAIN FEES AMONG OTHER CHARGES THOSE OMISSIONS WENT BEYOND EARLIER CHARGES BY THE RTC INSPECTOR GENERAL THAT THE RTC ALLOWED EXCESSIVE CONTRACT CHARGES IN ITS HOMEFED STEWARDSHIP INCLUDING APPROVING 67 CENTS A PAGE FOR PHOTOCOPYING MILLIONS OF HOMEFED DOCUMENTS THE RTC HAS SAID THOSE ALLEGATIONS ARE OVERBLOWN MR BOWSHER ALSO SAID THAT IN ITS AUDIT OF 1992 RTC FINANCES THE GAO HAS THE SAME CONCERNS ABOUT INADEQUATE CONTRACT OVERSIGHT AND INEFFICIENT MONEY RECOVERIES FROM FAILED THRIFTS AS IT HAD LAST APRIL IN ITS 1991 REPORT ON THE AGENCY'S PERFORMANCE YESTERDAY'S TESTIMONY ADDED AMMUNITION TO CONGRESSIONAL CRITICS OF THE RTC LAWMAKERS INSIST THEY MUST SEE EVIDENCE THAT THE AGENCY'S CONTRACTING AND ASSETDISPOSITION PROGRAMS WILL BECOME MORE EFFICIENT BEFORE THEY APPROVE A FINAL 45 BILLION IN RTC THRIFT AND OTHER BAILOUT FUNDS THE CLINTON ADMINISTRATION THIS WEEK SAID THAT AMOUNT WAS NEEDED TO WRAP UP THE GOVERNMENT'S MASSIVE FOURYEAR S&L BAILOUT THE MONEY WOULD BE USED TO HELP COVER SAVINGS DEPOSITS HELD BY FAILED THRIFTS ACKNOWLEDGING THAT CONGRESS WANTS SUCH REFORMS TREASURY SECRETARY LLOYD BENTSEN WHO HAS THE RTC UNDER HIS WING THIS WEEK PLEDGED SUBSTANTIAL REFORMS IN RTC INTERNAL CONTROLS AMONG THE GAO'S ALLEGATIONS INVOLVING HOMEFED MR BOWSHER SAID THE RTC DIDN'T TAKE ADEQUATE STEPS TO ENSURE CONTRACTOR FEES WERE REASONABLE IN ADDITION THE RTC'S OVERSIGHT OFFICIAL WASN'T AWARE THE AGENCY HAD PAID FOR MOST OF A LAW FIRM CONTRACTOR'S OVERHEAD EXPENSES NETTING THE FIRM AN EXCESSIVE PROFIT ONLY TWO RTC WORKERS MANAGED THE PREPARATION OF MORE THAN 500 HOMEFED ENVIRONMENTAL ASSESSMENTS RESULTING IN SOME UNNECESSARY REPORTS BEING ISSUED WHILE OTHERS THAT WERE NEEDED WEREN'T DUPLICATE ASSESSMENTS ADDED 380000 IN UNNECESSARY COSTS MR BOWSHER ASSERTED THAT RTC VALUES THE NEED TO DISPOSE OF ASSETS QUICKLY MORE THAN THE IMPORTANCE OF SOUND CONTRACTING PROCEDURES AN RTC SPOKESMAN SAID THE AGENCY WOULD TAKE THE GAO COMMENTS VERY SERIOUSLY AND MAKE RECOMMENDED CHANGES WHERE NECESSARY RESPONDING TO INSPECTOR GENERAL JOHN ADAIR'S CHARGES THE SPOKESMAN SAID THAT THE RTC RELIES ON THE INSPECTOR GENERAL TO AUDIT ITS PROGRAMS AND POINT OUT WEAKNESSES HE SAID WE ARE HAPPY THAT AFTER NEARLY FOUR YEARS OF OPERATIONS THE AGENCY IS STARTING TO RECEIVE SUCH RECOMMENDATIONS FOR CORRECTIVE ACTION AMONG HIS CHARGES MR ADAIR SAID THE RTC AWARDED 23 MILLION IN CONTRACTS TO TWO FIRMS FOR RECORDS INVENTORY AND STORAGE WITHOUT SEEKING COMPETITIVE BIDS THE RTC STAFF LATER DID THE WORK FOR 150000 TWO CONTRACT WORKERS WERE CHARGED WITH STEALING MORE THAN 6500 MONEY ORDERS POTENTIALLY WORTH MORE THAN 6 MILLION FROM AN RTCRUN S&L THE RTC OFFICE IN TAMPA FLA COULDN'T ACCOUNT FOR ABOUT 124 MILLION OF INCOME FROM SELLING REAL ESTATE PROPERTIES ALL BUT ABOUT 2 MILLIION HAS NOW BEEN ACCOUNTED FOR BY AN OUTSIDE CONTRACTOR HIRED BY THE RTC AN RTC OFFICE PAID OR IS COMMITTED TO PAY ABOUT 18 MILLION IN SALES FEES TO ASSET MANAGERS FOR ASSETS THEY DIDN'T SELL TWO CONTRACTOR EMPLOYEES DIVERTED 500000 TO THEIR OWN ACCOUNTS FROM A BANKRUPTCY SETTLEMENT WHILE NECESSARY THE EXTENSIVE RELIANCE ON THE PRIVATE SECTOR EXPOSES RTC TO WASTE FRAUD AND MISMANAGEMENT MR ADAIR SAID THE PROBLEM IS HEIGHTENED BY THE SIZE AND COMPLEXITY OF THE RTC TASKS HE SAID THE LARGEST ANY PRIVATE OR GOVERNMENT ENTITY HAS EVER HAD TO FACE 9303190022 930319 COMMODITIES LIVESTOCK PRICES SURGE ON SHORTAGES THAT HURT MEATPACKERS THREATEN TO FAN FOOD INFLATION BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SURGING LIVESTOCK PRICES ARE STINGING THE NATION'S MEATPACKERS AND THREATENING TO FAN FOOD INFLATION CATTLE PRICES ARE HITTING RECORD HIGHS AND HOG PRICES HAVE SOARED 18 SO FAR THIS YEAR IN PART BECAUSE OF AN UNUSUALLY WET WINTER ON THE GREAT PLAINS DODGE CITY KAN FOR EXAMPLE HAS HAD A RECORD 60 INCHES OF SNOW SINCE OCT 1 ABOUT THREE TIMES ITS NORMAL ACCUMULATION THE SNOW HAS TURNED FEEDLOTS INTO MUD WHICH IS SLOWING THE ABILITY OF CATTLE TO GAIN WEIGHT IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE YESTERDAY THE HOG FUTURES CONTRACT FOR APRIL DELIVERY JUMPED 15 CENTS A POUND TO SETTLE AT A SEASONAL HIGH OF 50375 CENTS A POUND THE CATTLE FUTURES CONTRACT FOR THAT MONTH CLIMBED 0925 CENTS A POUND TO SETTLE AT A SEASONAL HIGH OF 8327 A POUND CASH STEER PRICES HAVE SET RECORDS IN SOME INTERIOR MARKETS SEVERAL COMMODITY ANALYSTS SAID THE SHORTAGE OF MATURE LIVESTOCK HAS SPARKED A BIDDING WAR AMONG US MEATPACKERS WHICH HAVE TO OPERATE THEIR SLAUGHTER PLANTS AT A HIGH LEVEL OF CAPACITY IN ORDER TO TURN A PROFIT AS A RESULT SOME MEATPACKERS HAVE TEMPORARILY CLOSED PLANTS OR REDUCED SHIFTS DAVID C NELSON AN INDUSTRY ANALYST AT COUNTY NATWEST WASHINGTON DC IS LOWERING HIS FIRSTQUARTER EARNINGS ESTIMATE FOR THE NATION'S BIGGEST MEATPACKER IBP INC DAKOTA CITY NEB BY SIX CENTS A SHARE TO 22 CENTS A SHARE OR ABOUT 105 MILLION IN LATE TRADING AT THE NEW YORK STOCK EXCHANGE YESTERDAY IBP CLOSED AT 1850 A SHARE UNCHANGED GROCERY BILLS WOULD QUICKLY RISE IF HIGHER LIVESTOCK PRICES SWEEP INTO SUPERMARKETS RED MEAT REPRESENTS ONEFIFTH OF THE GOVERNMENT'S CONSUMER PRICE INDEX FOR FOOD AT HOME WHICH IS PROJECTED TO CLIMB A MODEST 1 TO 3 THIS YEAR THE AGRICULTURE DEPARTMENT'S FORECAST HINGES ON FLAT RETAIL PRICES FOR RED MEAT THIS YEAR WHICH IN TURN IS BASED ON PREDICTIONS FOR A STEADY RISE IN MEAT PRODUCTION BUT THE HOG SLAUGHTER HAS TRAILED SIMILAR 1992 WEEKS SINCE FEBRUARY AND MUCH OF THE CATTLE THAT MEATPACKERS ARE ABLE TO BUY WEIGH LESS THAN NORMAL GOVERNMENT ECONOMISTS ARE EXPECTED TO RAISE THEIR RED MEAT INFLATION FORECAST IF THE MARCH 1 QUARTERLY HOG CENSUS SLATED FOR RELEASE NEXT WEEK DETECTS A SMALLERTHANEXPECTED HERD WE THOUGHT THERE WOULD BE A LARGER SUPPLY OF HOGS THIS YEAR SAID RALPH PARLETT A FOOD PRICE ANALYST AT THE AGRICULTURE DEPARTMENT BUT THEY HAVEN'T BEEN FOUND BASED ON PREVIOUS GOVERNMENT SURVEYS INDUSTRY ANALYSTS ARE BETTING THE AGRICULTURE DEPARTMENT MIGHT REPORT ANYWHERE FROM A 1 TO 4 RISE IN THE US HOG POPULATION COMPARED WITH MARCH 1 1992 BUT ANALYSTS AND TRADERS SAID YESTERDAY THEY ARE ALREADY SKEPTICAL OF THE REPORT'S ACCURACY ALL THIS MAKES FOR A VOLATILE ENVIRONMENT IN THE FUTURES MARKET IF THE AGRICULTURE DEPARTMENT SURVEY PROVES ACCURATE THE PRICE BUBBLE WILL POP ANALYSTS SAID THE MARKET IS SETTING ITSELF UP FOR A MAJOR WRECK THIS SUMMER IF THE GOVERNMENT NUMBERS EVENTUALLY PROVE TO BE THAT LARGE SAID CHARLES LEVITT AN ANALYST AT SHEARSON LEHMAN BROTHERS CHICAGO IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES WERE MOSTLY HIGHER ALTHOUGH THERE WAS LITTLE NEWS TO JUSTIFY THE INCREASES SOME PRICING SUPPORT RESULTED FROM A REPORT BY THE VIENNA HEADQUARTERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THAT PETROLOGISTICS LTD HAD MONITORED OPEC OUTPUT OF 234 MILLION BARRELS A DAY FOR THE FIRST WEEK OF MARCH THAT MEANT A DROP OF SOME TWO MILLION BARRELS A DAY FROM OPEC'S FEBRUARY AVERAGE AND SUGGESTED THE OIL EXPORTERS WERE FOLLOWING THROUGH ON THEIR RECENTLY SET OUTPUT CURBS BUT IT WAS OLD NEWS FIRST DISCLOSED IN THIS NEWSPAPER A WEEK AGO BEYOND THAT TRADERS GENERALLY DESCRIBED THE OIL MARKETS AS TECHNICALLY DRIVEN OR DIRECTIONLESS AS A RESULT MOST OIL PRICES REMAINED IN A RELATIVELY NARROW BAND ON THE NEW YORK MERCANTILE EXCHANGE LIGHT LOWSULFUR CRUDE OIL FOR APRIL DELIVERY SETTLED 12 CENTS A BARREL HIGHER AT 2029 LINGERING COLD WEATHER CONTINUED TO HELP HEATING OIL FUTURES WITH THE APRIL CONTRACT CLOSING UP 50 CENT A GALLON AT 5837 CENTS 9303190021 930319 BUSINESS BRIEF PAGING NETWORK INC RIVALS' SUIT CHARGES FIRM WITH ANTICOMPETITIVE MOVES PAGING NETWORK INC SAID A GROUP OF COMPETING PAGING CONCERNS HAS FILED A LAWSUIT ALLEGING THAT THEY HAVE SUFFERED MORE THAN 50 MILLION IN DAMAGES AS A RESULT OF ANTICOMPETITIVE ACTIONS BY PAGING NETWORK A SPOKESWOMAN FOR THE DALLAS PAGING CONCERN SAID THE PLAINTIFFS ALLEGE THAT THE COMPANY TRIED TO INJURE OR DESTROY COMPETITORS BY SELLING ITS PAGERS BELOW COST TYING SALES OF ITS PAGERS TO OTHER PAGING SERVICES AND SOLICITING DESCRIMINATORY PRICING OF PAGERS FROM ITS SUPPLIERS THE SUIT SEEKS INJUNCTIVE RELIEF TREBLE DAMAGES AND OTHER COMPENSATION THE SPOKESWOMAN SAID PAGING NETWORK DENIES THE CHARGES AND INTENDS TO VIGOROUSLY DEFEND ITSELF IN THE SUIT PAGING NETWORK SAID THE PLAINTIFFS INCLUDE COMMCENTER CORP AND CITIPAGE BOTH OF NEVADA PACIFIC COAST PAGING OF CALIFORNIA COMMUNICATIONS CENTER OF FLORIDA INC AND WDS COMMUNICATIONS INC OF TEXAS THE SUIT FILED IN US DISTRICT COURT IN LOS ANGELES DID NOT LIST THE CITIES THE FIRMS ARE LOCATED IN AND LAWYERS FOR THE PLAINTIFFS' GROUP DIDN'T RETURN CALLS SEEKING COMMENT 9303190020 930319 NEW YORK OFFICIAL GETS NO 2 POST IN TRANSPORTATION BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON NOMINATED NEW YORK CITY'S TOP TRANSIT OFFICIAL TO BE DEPUTY TRANSPORTATION SECRETARY AND IS EXPECTED TO PICK AN ARKANSAS OFFICIAL FOR THE POWERFUL POST OF FEDERAL HIGHWAY ADMINISTRATOR MORTIMER DOWNEY IF CONFIRMED BY THE SENATE AS EXPECTED WOULD HOLD THE NO 2 JOB IN THE TRANSPORTATION DEPARTMENT HE HAS SERVED AS EXECUTIVE DIRECTOR AND CHIEF FINANCIAL OFFICER OF METROPOLITAN TRANSIT AUTHORITY OF NEW YORK CITY THE NATION'S LARGEST MASSTRANSIT SYSTEM FOR MORE THAN SIX YEARS RODNEY SLATER CHAIRMAN OF THE ARKANSAS HIGHWAY COMMISSION IS EXPECTED TO BE NAMED ADMINISTRATOR OF THE FEDERAL HIGHWAY ADMINISTRATION HE IS A FRIEND OF THE CLINTON FAMILY AND SERVED AS A POLITICAL ADVISER ON MINORITY ISSUES DURING THE PRESIDENTIAL CAMPAIGN THE LEADING CONTENDER FOR GENERAL COUNSEL OF THE TRANSPORTATION DEPARTMENT IS STEPHEN KAPLAN WHO SERVED AS CITY ATTORNEY IN DENVER FROM 1983 TO 1990 WHILE TRANSPORTATION SECRETARY FEDERICO PENA WAS MAYOR OF DENVER HIS APPOINTMENT REQUIRES SENATE CONFIRMATION AS DOES MR SLATER'S THE NOMINATION OF MR DOWNEY WHO SERVED AS ASSISTANT TRANSPORTATION SECRETARY FOR BUDGET AND PROGRAMS DURING THE CARTER ADMINISTRATION WAS WELCOMED BY THE AMERICAN PUBLIC TRANSIT ASSOCIATION HIS BUDGET EXPERIENCE WILL BE CRUCIAL TO THE NEED FOR INCREASED FEDERAL INVESTMENT IN TRANSPORTATION INFRASTRUCTURE ESPECIALLY PUBLIC TRANSIT SAID JACK GILSTRAP SPOKESMAN FOR THE GROUP MR DOWNEY A 1958 YALE UNIVERSITY GRADUATE HAS BEEN OPERATING THE NEW YORK MTA WITH ANNUAL BUDGET OF MORE THAN 5 BILLION WHILE PRESIDING OVER THE ISSUANCE OF 17 BILLION IN BONDS ANNUALLY MR SLATER A 1980 GRADUATE OF THE UNIVERSITY OF ARKANSAS LAW SCHOOL HAS SERVED ON THE ARKANSAS HIGHWAY COMMISSION SINCE 1987 IT IS A PARTTIME PANEL THAT OVERSEES THE STATE HIGHWAY AND TRANSPORTATION AGENCY HE TOOK A LEAVE OF ABSENCE FROM HIS JOB AS DIRECTOR OF GOVERNMENTAL RELATIONS AT ARKANSAS STATE UNIVERSITY JONESBORO TO ACCOMPANY MR CLINTON ON HIS CAMPAIGN FORAYS MR KAPLAN IS A HARVARD LAW SCHOOL GRADUATE HE WAS A LEGISLATIVE ASSISTANT TO A DEMOCRATIC OKLAHOMA CONGRESSMAN FOR THREE YEARS BEFORE JOINING THE COLORADO ATTORNEY GENERAL'S OFFICE IN 1976 AND RISING TO FIRST ASSISTANT ATTORNEY GENERAL THE WHITE HOUSE IS ALSO EXPECTED TO ANNOUNCE THE APPOINTMENT OF RICHARD MINTZ A KEY PRESS AIDE IN THE CLINTON CAMPAIGN AS DIRECTOR OF PUBLIC AFFAIRS AND ASSISTANT TO SECRETARY PENA MR MINTZ A 31YEAROLD GRADUATE OF UNION COLLEGE HAS BEEN ACTING DIRECTOR FOR SEVERAL WEEKS HE HAS HELD SEVERAL PRESS AND PUBLIC RELATIONS POSTS IN ADDITION MICHAEL HUERTA EXECUTIVE DIRECTOR OF THE PORT OF SAN FRANCISCO IS EXPECTED TO BE NAMED DIRECTOR OF THE TRANSPORTATION DEPARTMENT'S OFFICE OF INTERMODALISM 9303190019 930319 BUSINESS BRIEF LESLIE FAY COS TWO DIVISIONS WILL BE SHUT AS PART OF A RESTRUCTURING AS A PART OF A CONTINUING RESTRUCTURING AIMED AT FOCUSING ON MORE PROFITABLE MODERATELY PRICED WOMEN'S APPAREL LESLIE FAY COS SAID IT WILL DISCONTINUE MANUFACTURING ITS HIGHESTPRICED BRAND ALBERT NIPON DESIGNER WOMEN'S APPAREL AND SHUTTER ITS INTIMATE APPAREL DIVISION THE TWO DIVISIONS HAD COMBINED 1992 SALES OF 20 MILLION AND WERE UNPROFITABLE WITH MARGINS WELL BELOW THE COMPANY'S AVERAGE SAID A SPOKESMAN FOR LESLIE FAY WHICH HAD 1992 SALES OF MORE THAN 600 MILLION LESLIE FAY NEW YORK SAID IT WILL CONTINUE MAKING ITS ALBERT NIPON BOUTIQUE LINE OF WOMEN'S DRESSES AND SUITS WHICH RETAIL AT UNDER 300 AND REPRESENT A LARGER PART OF ITS NIPONLABEL BUSINESS LESLIE FAY SAID IT PLANS TO CONTINUE MARKETING INTIMATE APPAREL THROUGH LICENSING AGREEMENTS WITH OTHER MANUFACTURERS 9303190018 930319 WEATHER THROWS A WET BLANKET OVER BEER SALES BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL AMELIA ISLAND FLA BY NOW US BREWERS MUST THINK MOTHER NATURE IS A PROHIBITIONIST OFF AND ON FOR NEARLY A YEAR WEATHER THAT'S WET CHILLY OR SIMPLY AWFUL HAS BEEN KNOCKING DOMESTIC BEER SALES FOR A LOOP ANHEUSERBUSCH COS THE WORLD'S LARGEST BREWER BLAMES HEAVY SPRING RAINS AND LAST WEEKEND'S MASSIVE FREAK SNOWSTORM FOR CLOBBERING ITS FIRSTQUARTER SALES PARTICULARLY IN PLACES NORMALLY GRACED BY WARM SUNSHINE CALIFORNIA IS A PRIME EXAMPLE THE STATE WHICH ANALYSTS SAY ACCOUNTS FOR ABOUT 15 OF ANHEUSER'S SALES HAS BEEN DRENCHED THIS SPRING WET WEATHER IS WORSE THAN COLD SAYS EMANUEL GOLDMAN BEVERAGEINDUSTRY ANALYST WITH PAINEWEBBER INC PEOPLE CAN PUT ON ANOTHER LAYER WITH COLD BUT WET KEEPS PEOPLE FROM GOING OUT NASTY WEATHER ALSO DAMPENED THIS WEEK'S ST PATRICK'S DAY CELEBRATION FOR MANY THE IRISH HOLIDAY TRADITIONALLY IS A BIG ONE FOR BEER SALES NONETHELESS ANHEUSER IS FORECASTING BETTER FINANCIAL WEATHER JUST AHEAD JERRY E RITTER EXECUTIVE VICE PRESIDENTCHIEF FINANCIAL AND ADMINISTRATIVE OFFICER SAYS ANHEUSER STILL CAN FINISH THE YEAR WITH DOUBLEDIGIT EARNINGS GAINS WHILE INCREASING ITS DOMINANCE OF THE DOMESTIC BEER MARKET WHILE IT'S TOO EARLY TO EXPRESS A COMFORT LEVEL WITH WALL STREET EXPECTATIONS MR RITTER NOTES THAT A MINIMUM DOUBLEDIGIT INCREASE OF 10 WOULD PUT ANHEUSER'S OPERATING EARNINGS AT ABOUT 382 A SHARE BEFORE THE ST LOUIS COMPANY'S SURPRISE ANNOUNCEMENT THIS WEEK THAT THE FIRST QUARTER WOULD BE DOWN ABOUT 7 ANALYSTS HAD BEEN LOOKING FOR 389 TO 395 A SHARE FOR THE YEAR EVEN WITH POOR BEER DRINKING WEATHER LAST YEAR ANHEUSER MANAGED TO INCREASE BARRELS SHIPPED BY 1 AS IT REPORTED RECORD EARNINGS OF 9175 MILLION OR 322 A SHARE ON SALES OF 131 BILLION BEFORE CHARGES FOR POSTRETIREMENT AND INCOME TAX ACCOUNTING CHANGES THE COMPANY EARNED 348 A SHARE MEANWHILE ECONOMIC JITTERS CONTINUE TO DEPRESS CONSUMPTION MR RITTER CITED NEW YORK NEW JERSEY PENNSYLVANIA MUCH OF NEW ENGLAND CALIFORNIA AND PARTS OF SUCH BIG MIDWESTERN STATES AS MICHIGAN OHIO AND ILLINOIS AS PROBLEM AREAS NOT ONLY WAS ANHEUSER VOLUME DOWN IN THOSE STATES BUT MANY CUSTOMERS ALSO BOUGHT CHEAPER BRANDS SUCH AS ANHEUSER'S SUBPREMIUM BUSCH RATHER THAN ITS PREMIUMPRICED BUDWEISER LINE OF THE TYPICAL AMERICAN BEER DRINKER A BLUECOLLAR WORKER WHO MAY OR MAY NOT BE EMPLOYED WE SEE NO EVIDENCE HIS CONFIDENCE IS ANY BETTER MR RITTER SAID ALTHOUGH ANHEUSER VOWS TO INCREASE ITS DOMESTIC MARKET LEADERSHIP OVER ARCHRIVALS PHILIP MORRIS COS' MILLER BREWING CO UNIT AND ADOLPH COORS CO MR RITTER SAID EXPANSION IN THE OVERSEAS BEER MARKET WILL BE NECESSARY TO MAINTAIN OUR GROWTH MOMENTUM ONE EXAMPLE IS IN JAPAN WHERE ANHEUSER HAS A JOINT VENTURE IT HOPES WILL TURN BUDWEISER FROM THE LEADING IMPORT INTO A MAINSTREAM BRAND THE ALLIANCE WITH KIRIN BREWERY CO JAPAN'S BIGGEST BREWER IS EXPECTED TO BOOST BUD'S DISTRIBUTION IN ONE OF THE WORLD'S MAJOR BEERCONSUMING NATIONS TO THE EXTENT ATTRACTIVE INVESTMENTS IN THE INTERNATIONAL BEER MARKET DO NOT MATERIALIZE IN THE SHORT TERM WE WILL CONTINUE TO BE AGGRESSIVE IN USING OUR SIGNIFICANT FREE CASH FLOW FOR SHARE REPURCHASING MR RITTER TOLD A MEETING OF SECURITIES ANALYSTS AND PORTFOLIO MANAGERS THE BRIEFING WAS CLOSED TO THE PRESS BUT THE WALL STREET JOURNAL OBTAINED A COPY OF HIS REMARKS IN THEM MR RITTER REITERATED STATEMENTS BY ANHEUSER'S CHAIRMAN AUGUST A BUSCH III THAT THE COMPANY ISN'T INTERESTED EITHER IN SIGNIFICANTLY EXPANDING ITS FOOD OR ENTERTAINMENT BUSINESSES OR IN DIVERSIFYING INTO AN ENTIRELY NEW BUSINESS 9303190017 930319 BUSINESS BRIEF GENERAL ELECTRIC CO AEROSPACE EMPLOYEES FILE LAWSUIT OVER PENSION PLAN GENERAL ELECTRIC CO'S AEROSPACE EMPLOYEES SUED THE COMPANY TO PREVENT IT FROM TRANSFERRING THEIR PENSION PLAN ASSETS TO MARTIN MARIETTA CORP WHICH HAS AGREED TO BUY GE'S AEROSPACE DIVISION THE SUIT FILED ON BEHALF OF 37000 GE AEROSPACE EMPLOYEES CONTENDS THAT THE EMPLOYEES FEAR LOSING PENSION AND OTHER BENEFITS THEY OBTAINED AT GE THE SUIT WAS FILED IN FEDERAL COURT IN CONNECTICUT MARTIN MARIETTA SHAREHOLDERS ARE SCHEDULED TO VOTE ON THE PROPOSED PURCHASE ON MARCH 25 MARTIN MARIETTA BASED IN BETHESDA MD HAS AGREED TO PAY 18 BILLION IN CASH AND PREFERRED STOCK TO ACQUIRE THE GE UNIT IN A STATEMENT GE SAID IT KNEW OF NO LEGAL BASIS TO PREVENT THE TRANSFER OF PENSION ASSETS THE GE PENSION PLAN WHICH PROVIDES FOR THE TRANSFER OF ASSETS REQUIRES THAT EACH PARTICIPANT'S ACCRUED PENSION BENEFITS AFTER THE TRANSFER WILL BE EQUAL TO THE ACCRUED BENEFITS BEFORE THE TRANSFER THE FAIRFIELD CONN MANUFACTURER SAID A MARTIN MARIETTA SPOKESMAN SAID THE LAWSUIT IS WITHOUT MERIT AND ACTUALLY UNFORTUNATE WE'VE TRIED TO MAKE IT VERY CLEAR THAT PENSIONS WILL BE PROTECTED IN THIS TRANSACTION 9303190016 930319 INTERNATIONAL HONG KONG GOVERNOR PREDICTS BEIJING WILL ACCEPT COUNCIL'S REFORM PACKAGE BY KAREN ELLIOTT HOUSE AND URBAN C LEHNER STAFF REPORTERS OF THE WALL STREET JOURNAL HONG KONG GOV CHRIS PATTEN PREDICTED THAT DESPITE CHINA'S THREATS BEIJING WILL ACCEPT THE REFORM PACKAGE HE EXPECTS TO EMERGE FROM HONG KONG'S LEGISLATIVE COUNCIL BY JULY I BELIEVE THAT THE LEGISLATIVE COUNCIL WILL AGREE TO PROPOSALS THAT ARE SENSIBLE AND IN HONG KONG'S INTERESTS AND NOT A THREAT TO ANYONE HE SAID IN AN INTERVIEW SO I'D BE VERY SURPRISED IF CHINA FELT OBLIGED TO TEAR THEM TO PIECES IN 1997 WHEN THE BRITISH COLONY REVERTS TO CHINESE SOVEREIGNTY THE GOVERNOR WHOM A CHINESE OFFICIAL THE DAY BEFORE HAD VILIFIED AS HONG KONG'S CRIMINAL OF ALL TIME SEEMED RELAXED AND ALMOST NONCHALANT ABOUT THE POLITICAL FIRESTORM ENGULFING HIM WELCOME TO THE VILLAIN'S LAIR HE SAID WITH A BROAD SMILE BUT HE QUICKLY INDICATED HIS DETERMINATION TO STAY THE COURSE HE LAUNCHED LAST OCTOBER WHEN HE OUTLINED HIS IDEAS FOR ELECTORAL REFORM I'M GOING TO BE HERE UNTIL THE 30TH OF JUNE 1997 HE SAID REFERRING TO THE DATE HONG KONG REVERTS TO CHINESE RULE HE EXPRESSED BEMUSEMENT THAT CHINESE OFFICIALS ARE TARGETING HIM IN AN APPARENT ATTEMPT TO SEPARATE HIM FROM THE UK GOVERNMENT WHICH APPOINTED HIM GOVERNOR OF THE BRITISH COLONY THEY MUST KNOW THAT I'M ONE OF THE PRIME MINISTER'S AND FOREIGN MINISTER'S CLOSEST FRIENDS IN OR OUT OF POLITICS THE GOVERNOR SAID THEY MUST HAVE AVAILABLE TO THEM MY CURRICULUM VITAE HE ALSO NOTED THAT SUPPORT BY MEMBERS OF PARLIAMENT OF ALL PARTIES IS THE STRONGEST IN A DECADE FOR BRITAIN'S POLICY IN HONG KONG THROUGHOUT THE 45MINUTE INTERVIEW GOV PATTEN WAS NEITHER APOLOGETIC NOR DEFENSIVE ABOUT HIS HANDLING OF THE CONTROVERSY WITH CHINA OVER HONG KONG'S ELECTORAL SYSTEM HE SEEMED UNFAZED BY CHINA'S NAMECALLING AND EVEN SAID HE WELCOMED THE COMMENTS WEDNESDAY OF LU PING WHO OVERSEES BEIJING'S POLICY ON HONG KONG STRIPPED OF ABUSE THEY'RE SUPPORTING THE WELLBEING OF HONG KONG MR PATTEN SAID GREAT IF THEY GO ON DOING THAT WHILE FEELING OBLIGED TO ABUSE ME THAT'S A PRICE I DON'T MIND PAYING MR PATTEN SAID HE IS SIMPLY TRYING TO STAND UP FOR HONG KONG'S WAY OF LIFE AND TO CLOSE THE LAST CHAPTER IN BRITAIN'S COLONIAL HISTORY HONORABLY HE SAID HE IS CONCERNED NOT ABOUT FACE BUT ABOUT HONOR ASKED TO DEFINE THE TWO HE SAID FACE IS HOW YOU LOOK TO OTHERS HONOR IS WHAT YOU DO FOR OR TO OTHERS IN PREDICTING THAT THE LEGISLATIVE COUNCIL WILL PASS PROPOSALS ACCEPTABLE TO BEIJING MR PATTEN MAY HAVE BEEN HINTING AT AN HONORABLE WAY OUT OF THE DILEMMA IT'S POSSIBLE THE COUNCIL WILL ALTER OR WEAKEN SOME OF MR PATTEN'S MORE CONTROVERSIAL PROPOSALS INCLUDING HIS SUGGESTION THAT SOME MEMBERS OF THE COUNCIL BE ELECTED IN THE FUTURE FROM FUNCTIONAL CONSTITUENCIES REPRESENTING OCCUPATIONAL GROUPS MR PATTEN AND THE BRITISH PRESUMABLY COULD ACCEPT WHATEVER THE COUNCIL DECIDED ON THIS ISSUE AS AN EXPRESSION OF THE WILL OF HONG KONG'S PEOPLE THE QUESTION IS WHETHER THE CHINESE CAN ACCEPT ANY ACTION BY THE COUNCIL WHICH THEY ARGUE SHOULDN'T BE A LEGISLATIVE BODY IT'S KNOWN THAT THE CHINESE GOVERNMENT HAS INVITED TO BEIJING IN EARLY APRIL ITS 43MEMBER COUNCIL OF ADVISERS FROM HONG KONG THERE'S SPECULATION THAT AFTER SEEKING THE ADVISERS' VIEWS BEIJING MAY CREATE A NEW COMMITTEE TO ACT AS A SHADOW GOVERNMENT BETWEEN NOW AND 1997 SINCE MR PATTEN OFFICIALLY PUBLISHED HIS PROPOSALS LAST FRIDAY CHINESE OFFICIALS HAVE SAID FURTHER TALKS WITH BRITAIN ON THE ISSUE ARE IMPOSSIBLE MR PATTEN SAID IN THE INTERVIEW THAT THE IMPOSSIBLE CAN SOMETIMES BECOME POSSIBLE ADDING THAT OUR DOOR REMAINS OPEN BUT HE SAID HE MAY PUT THE PROPOSALS UP FOR DEBATE IN THE LEGISLATIVE COUNCIL AS EARLY AS THE END OF THIS MONTH I DON'T THINK WE CAN INDEFINITELY STAND AROUND DISAPPOINTED THAT THERE AREN'T TALKS AND NOT DO ANYTHING THE GOVERNOR SAID 9303190015 930319 LAW LEGAL BEAT FIRMS PRESSURED NOT TO SUPPORT ACCUSED AIDES BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL THE GOVERNMENT HAS TIGHTENED THE SCREWS ON COMPANIES THAT STAND BEHIND EMPLOYEES WHO ARE ACCUSED OF CRIMES AND AS A RESULT FEWER COMPANIES ARE DOING SO BUILDING ON RULES INVOLVING DEFENSECONTRACTING FRAUD THE FEDERAL GOVERNMENT IN THE PAST TWO YEARS HAS PUSHED THROUGH SEVERAL PROVISIONS THAT ENCOURAGE COMPANIES TO COOPERATE WITH PROSECUTORS AT THE EXPENSE OF THEIR EMPLOYEES THESE MEASURES INCLUDE THE NEW CORPORATE SENTENCING GUIDELINES A POLICY STATEMENT BY THE SECURITIES AND EXCHANGE COMMISSION IN RESPONSE TO SALOMON INC'S HANDLING OF THE TREASURYAUCTION SCANDAL AND A NEWLY RELEASED DRAFT OF ENVIRONMENTALSENTENCING GUIDELINES IN ALL CASES THE MESSAGE FOR COMPANIES IS CLEAR SET UP COMPLIANCE PROGRAMS THAT CATCH WRONGDOERS AND COOPERATE WITH THE GOVERNMENT OR ELSE THESE RULES BRING TO CORPORATIONS THE SAME SORT OF CHOICE THAT INDIVIDUAL CRIMINAL DEFENDANTS HAVE LONG FACED COOPERATE AGAINST ONE'S COHORTS OR FACE THE FULL WRATH OF THE LAW CORPORATIONS ARE POTENTIALLY RESPONSIBLE FOR THE CRIMINAL CONDUCT OF AN EMPLOYEE SO THEY HAVE A SPECIAL INCENTIVE TO COOPERATE BUT THE NEW POLICIES RAISE SPECIAL WORRIES SAYS DAVID ZORNOW AN ATTORNEY AT SKADDEN ARPS SLATE MEAGHER & FLOM BECAUSE THIS DIVIDEANDCONQUER APPROACH RISKS PITTING MANAGEMENT AGAINST EMPLOYEES COMPANIES ARE CONCERNED THAT EMPLOYEES ARE GOING TO FEEL THAT THE COMPANY WON'T BE THERE FOR THEM IF THEY MAKE A BAD JUDGMENT OR GET IN TROUBLE FOR DOING WHAT THEY THINK THE COMPANY EXPECTS SAYS GARY EDWARDS PRESIDENT OF ETHICS RESOURCE CENTER INC A WASHINGTON NONPROFIT ORGANIZATION THAT DOES RESEARCH INTO ETHICAL ISSUES AND PREPARES TRAINING MATERIAL FOR CORPORATIONS ONE IMMEDIATE RESULT OF THE NEW RULES HAS BEEN A MOVEMENT AMONG INHOUSE LAWYERS TO DEVELOP WARNINGS FOR EMPLOYEES WHO ARE CALLED INTO MEETINGS WITH THE COMPANY'S COMPLIANCE DEPARTMENT TO DISCUSS POSSIBLE WRONGDOING SUCH WARNINGS WHILE QUITE NEW TO THE CORPORATE WORKPLACE ARE SIMILAR TO THE FAMILIAR MIRANDA WARNINGS THAT CRIMINAL SUSPECTS RECEIVE FROM POLICE ADVISING THEM THAT WHAT THEY SAY CAN AND WILL BE USED AGAINST THEM SUCH WARNINGS ARE BECOMING STANDARD PRACTICE AT MOST COMPANIES SAYS THOMAS RUSSO A MANAGING DIRECTOR AT AMERICAN EXPRESS CO'S LEHMAN BROTHERS IN CHARGE OF COMPLIANCE EFFORTS IN PARTICULAR COMPANY LAWYERS ARE MAKING CLEAR TO EMPLOYEES THAT THE LAWYERS WORK FOR THE COMPANY AND MAY HAVE TO TELL THE GOVERNMENT WHAT THE EMPLOYEE SAID TO MITIGATE PENALTIES FOR THE CORPORATE CLIENT CONFLICTS BETWEEN THE COMPANY AND AN EMPLOYEE CAN ARISE BOTH IN CIVIL AND CRIMINAL MATTERS IN RESPONSE TO THE GOVERNMENT'S PUSH FOR CORPORATE COOPERATION IN COMBATING WRONGDOING COMPANIES ALSO ARE IMPROVING THEIR INTERNAL WATCHDOG OR COMPLIANCE PROGRAMS BROKERAGE FIRMS ARE PUTTING IN SOPHISTICATED COMPUTER SYSTEMS THAT MAY HELP THEM CATCH EMPLOYEES TRADING ON INSIDE INFORMATION AND GOVERNMENT CONTRACTORS ARE USING MODERN COMPUTER AND VIDEO TRAINING SYSTEMS TO DETER AND DETECT WRONGDOING THESE EFFORTS SHOULD HELP THE FIRMS AVOID LIABILITY BECAUSE PROSECUTORS SAY THEY'LL GIVE COMPANIES WITH AGGRESSIVE COMPLIANCE PROGRAMS THE BENEFIT OF THE DOUBT COMPANIES ARE ALSO TRYING HARDER THESE DAYS TO INFORM PROSECUTORS OF EMPLOYEE WRONGDOING BEFORE GOVERNMENT INVESTIGATORS FIND OUT ABOUT IT ON THEIR OWN TERRENCE O'DONNELL A LAWYER AT WILLIAMS & CONNOLLY WHO WAS COUNSEL TO THE DEPARTMENT OF DEFENSE SAYS HE SAW SUCH VOLUNTARY DISCLOSURES INCREASE DURING HIS TENURE BETWEEN 1989 AND 1992 THE TREND HAS REACHED WALL STREET FIRMS AS WELL WHERE THERE ALSO HAVE BEEN MORE VOLUNTARY DISCLOSURES OF WRONGDOING SAYS WILLIAM R MCLUCAS THE DIRECTOR OF THE SEC'S ENFORCEMENT DIVISION THE DAYS OF WRAPPING YOUR ARM AROUND THE EMPLOYEE AND CIRCLING THE WAGON THOSE DAYS ARE OVER SAYS JOHN CARROLL AN ATTORNEY AT ROGERS & WELLS WHO UNTIL RECENTLY HEADED THE SECURITIESFRAUD PROSECUTION UNIT IN THE US ATTORNEY'S OFFICE IN MANHATTAN THE APPARENT IMPACT OF THE NEW APPROACH TO COMPLIANCE CAN BE SEEN IN THE RECENT CASE INVOLVING GOLDMAN SACHS & CO A WALL STREET INVESTMENT BANK THERE A YOUNG PARTNER MICHAEL SMIRLOCK WAS ACCUSED BY GOLDMAN OFFICIALS OF COOKING THE BOOKS IN THE MULTIMILLIONDOLLAR ACCOUNTS OF SEVERAL CLIENTS WITHIN 48 HOURS THE FIRM SUSPENDED HIM AND TURNED OVER ALL THE INFORMATION IT HAD ABOUT HIS ALLEGED ACTIVITIES TO THE SEC THE SEC'S REGIONAL ADMINISTRATOR IN NEW YORK RICHARD H WALKER DECLINED TO DISCUSS WHAT IF ANY ACTION MIGHT BE TAKEN AGAINST MR SMIRLOCK MR SMIRLOCK WHO WAS SUSPENDED FROM THE PARTNERSHIP AND IS EXPECTED EVENTUALLY TO LEAVE HIS JOB COULDN'T BE REACHED FOR COMMENT GOLDMAN'S HANDLING OF THE SMIRLOCK CASE DIFFERED GREATLY FROM THE SAME FIRM'S TREATMENT OF ROBERT FREEMAN A FORMER PARTNER WHO WAS ACCUSED OF INSIDER TRADING WITH IVAN BOESKY MR FREEMAN WAS NOT IMMEDIATELY LET GO ALTHOUGH HE WAS RELIEVED OF SOME DUTIES UNTIL HE PLEADED GUILTY TO ONE COUNT OF MAIL FRAUD TO BE SURE THERE ARE DIFFERENCES BETWEEN THE TWO CASES AMONG OTHER THINGS MR FREEMAN HAD BEEN AT THE FIRM MUCH LONGER THAN MR SMIRLOCK BUT ANOTHER KEY DIFFERENCE INVOLVES THE FIRM'S NEW COMPLIANCE EFFORT GOLDMAN NOW HAS A GLOBAL COMPLIANCE CONTROL COMMITTEE THAT WAS FORMED LAST YEAR WITH THE PURPOSE OF PERFORMING CONTINUOUS LEGAL REVIEWS OF THE FIRM'S FARFLUNG OPERATIONS AND IN AN ASSIGNMENT THAT SEEMS TO SEND A MESSAGE ONE OF THE PARTNERS RUNNING THE COMMITTEE IS FRANK BROSENS THE GOLDMAN TRADER WHO IT HAS BEEN REPORTED IN THIS NEWSPAPER TURNED OVER INFORMATION TO THE GOVERNMENT ABOUT MR FREEMAN SENIOR GOLDMAN PARTNERS WON'T TALK ABOUT THE CURRENT CASE PUBLICLY BUT THE SEC'S HANDLING OF IT IS BEING CLOSELY WATCHED IT WILL BE INTERESTING TO SEE WHAT THE SEC DOES GOLDMAN DID THE ABSOLUTELY RIGHT THING AND THE GOVERNMENT SHOULD GIVE POSITIVE REINFORCEMENT BY NOT DEALING HARSHLY WITH THE PARTNERSHIP SAYS LEHMAN'S MR RUSSO IN A CASE AFFECTING DEBT COLLECTORS A FEDERAL APPEALS COURT RULED THAT COLLECTORS CAN'T ATTACH LAWYERS' SIGNATURES TO COMPUTERGENERATED LETTERS TO DEBTORS SUCH MASS MAILINGS WHICH OFTEN INCLUDE THE THREAT OF A LAWSUIT FALSELY IMPLY THAT A LAWYER HAS REVIEWED THE FACTS OF THE PARTICULAR CASE AND IS IN SOME WAYS ACTIVELY INVOLVED IN THE COLLECTION EFFORT THE MANHATTANBASED APPEALS COURT SAID IN EXPLAINING ITS DECISION THE PRACTICE OF ADDING A LAWYER'S SIGNATURE TO SUCH LETTERS IS QUITE COMMON IN THE DEBTCOLLECTION INDUSTRY LAWYERS SAY THE DECISION IS BELIEVED TO BE THE FIRST ON THIS SUBJECT BY A FEDERAL APPEALS COURT THE RULING CAME IN A RELATIVELY MUNDANE CASE AT ISSUE WAS A LETTER SENT OVER THE SIGNATURE OF PHILIP D JACKSON A FREEPORT NY LAWYER TO A CONNECTICUT WOMAN DEMANDING THE PAYMENT OF A 942 DEBT FOR A MAGAZINE SUBSCRIPTION MR JACKSON WAS IDENTIFIED IN THE LETTER AS GENERAL COUNSEL OF NCB COLLECTION SERVICES EAST ROCKAWAY NY BUT MR JACKSON WHO WAS PAID 24000 TO SERVE AS THE GENERAL COUNSEL ON A PARTTIME BASIS IS ACTUALLY A PARTNER IN THE LAW FIRM CIARAVINO JACKSON & TEDESCHI ACCORDING TO THE APPEALSCOURT OPINION HE NEVER REVIEWED THE FILES OF THE DEBTORS TO WHOM THE LETTERS WERE SENT AND HAD LITTLE DAYTODAY INVOLVEMENT IN THE OPERATIONS OF THE DEBT CONCERN MR JACKSON DID NOT RETURN A PHONE CALL SEEKING COMMENT JOANNE S FAULKNER A LAWYER IN NEW HAVEN CONN WHO REPRESENTED THE PLAINTIFF SAID SHE WAS PLEASED BY THE DECISION BECAUSE IT WILL STOP LAWYERS SELLING THEIR NAMES TO A COLLECTION AGENCY SAID LESTER BRICKMAN A PROFESSOR AT CARDOZO SCHOOL OF LAW AT YESHIVA UNIVERSITY IN NEW YORK THIS DECISION WILL DEFINITELY SHAKE THINGS UP IN THE DEBT COLLECTION INDUSTRY THEY'LL HAVE TO COME UP WITH A SUBSTITUTE CLUB TO REPLACE THE LAWYER CLUB CLOMON VS JACKSON US APPEALS COURT 927942 NEW YORK WHO'S NEWS CARLA A HILLS FORMER US TRADE REPRESENTATIVE FORMED A CONSULTING FIRM WITH THREE ASSOCIATES FROM THE TRADE OFFICE MRS HILLS ALSO WILL BECOME A PARTNER IN THE WASHINGTON OFFICE OF SHEA & GOULD ALTHOUGH SHE SAID MOST OF HER TIME WOULD BE SPENT WITH HER NEW COMPANY SHE SAID HILLS & CO WILL REPRESENT US COMPANIES AS WELL AS FOREIGN ENTERPRISES OPERATING OUTSIDE THE US BUT THAT IT WON'T REPRESENT FOREIGN INTERESTS WITH THE ADMINISTRATION OR BEFORE CONGRESS MRS HILLS 59 YEARS OLD A PARTNER AT WEIL GOTSHAL & MANGES BEFORE BEING NAMED CHIEF TRADE NEGOTIATOR IN 1989 SAID SHE CHOSE HER NEW LAW FIRM BECAUSE SHE DIDN'T WANT TO PRACTICE LAW IN COMPETITION WITH HER HUSBAND FORMER SECURITIES AND EXCHANGE COMMISSION CHAIRMAN RODERICK HILLS WHO IS ALSO A SHEA & GOULD PARTNER WARHOL WARS A FEDERAL JUDGE IN NEW YORK DISMISSED A LAWSUIT BY THE ESTATE OF THE LATE ANDY WARHOL AGAINST PETER M BRANT WHO BOUGHT INTERVIEW MAGAZINE FROM A WARHOL CORPORATION IN 1989 THOUGH 72 MILLION OF THE 12 MILLION PURCHASE PRICE IS STILL OWED US DISTRICT JUDGE PETER CONBOY SAID THE ARTIST'S ESTATE CAN'T COLLECT BECAUSE THE NOWDEFUNCT WARHOL CORPORATION ENTERPRISES INC RATHER THAN THE ESTATE WAS NAMED IN A PAYMENT GUARANTEE PAUL J HANLEY JR AN ATTORNEY WHO REPRESENTS THE ESTATE SAID HE WILL SEEK ANOTHER APPROACH TO GETTING THE MONEY INTERVIEW WAS FOUNDED BY MR WARHOL IN 1969 9303190014 930319 REVIEW & OUTLOOK EDITORIAL SALVADOR AND NICARAGUA THE TINY NATION OF EL SALVADOR HAS BEEN MUCH IN THE NEWS THIS WEEK AS THE UNITED NATIONS AND FASHIONABLE AMERICAN MEDIA REVISITED DECADEOLD ATROCITIES AND RUMORS OF ATROCITIES IN THE WAR AGAINST COMMUNISTBACKED GUERRILLAS THEIR POINT SO FAR AS WE CAN DISCERN IS THAT HUMAN RIGHTS IN THAT NATION WOULD BE IN BETTER CONDITION TODAY IF THE LEFT HAD WON WE'RE TEMPTED TO SUGGEST A LABORATORY EXPERIMENT TURN EL SALVADOR OVER TO THE LEFT AND SEE WHAT HAPPENS THE PEOPLE OF SALVADOR HAVE REPEATEDLY EXPRESSED OTHER IDEAS AT THE POLLS HOWEVER AND HAPPILY FOR THEM THE EXPERIMENT ALREADY EXISTS ALL THAT'S NECESSARY IS TO COMPARE CURRENT CONDITIONS IN THEIR NATION WITH THOSE IN NEARBY NICARAGUA WHERE IN A COALITION REGIME THE SANDINISTA LEFT STILL CONTROLS THE KEY INSTRUMENTS OF STATE POWER IN EL SALVADOR THE UNITED NATIONS' TRUTH COMMISSION MEMBERS ARE JUST PART OF AN ARRAY OF INVESTIGATORSFROM ARGENTINE ANTHROPOLOGISTS TO 60 MINUTES PERSONNEL WHO HAVE BEEN ALLOWED IN TO DIG AROUND IN THE DIRTY PAST WHILE LIKE MAX SINGER IN THE AMERICAS COLUMN ON THE OPPOSITE PAGE WE FIND THE TRUTH COMMISSION REPORT ON THE TENDENTIOUS SIDE WE NOTE THAT THE INVESTIGATIONS HAVEN'T ONLY GONE FORWARD BUT HAVE HAD RESULTS SEE RELATED EDITORIAL THE AMERICAS THE WAR WAS THE REAL CRIME IN EL SALVADOR WSJ MARCH 19 1993 THEY HAVE HELPED LOCAL AUTHORITIES INDICT SUSPECTED ASSASSINS AND HAVE EVEN PROMPTED THE RESIGNATION OF SALVADOR'S MILITARY CHIEF GENERAL RENE EMILIO PONCE IN NICARAGUA WHERE THE SANDINISTAS CONTROL THE ARMY THE LEGISLATURE AND THE JUDICIARY THERE IS NO SIMILAR PROCESS UNDER WAY TO DEAL WITH THE PERPETRATORS OF WAR CRIMES SANDINISTA PROSECUTORS CONVENIENTLY OVERLOOK THE CONTINUING POSTWAR MURDERS OF DOZENS OF EXCONTRA COMBATANTS FOR EXAMPLE THE FEBRUARY 1991 ASSASSINATION OF FORMER CONTRA COMMANDER ENRIQUE BERMUDEZ NO ONE HAS BEEN PICKED UP FOR THIS OR OTHER SUCH CRIMES BUT WE HAVE HEARD NONE OF THE TRADITIONALLY OUTRAGED HUMAN RIGHTS ACTIVISTS CALLING FOR THE IMMEDIATE REMOVAL OF DEFENSE MINISTER SANDINISTA STRONGMAN GENERAL HUMBERTO ORTEGA ON THE ECONOMIC FRONT EL SALVADOR WENT THROUGH A DIFFICULT PERIOD DURING THE 1980S NOT LEAST BECAUSE OF OUTDATED ECONOMIC FORMULAS FOISTED UPON IT BY US DEVELOPMENT EXPERTS BUT THANKS TO US MILITARY AID EL SALVADOR AVOIDED A TAKEOVER BY MARXIST GUERRILLAS WHO WERE BENT ON DESTROYING THE CONCEPT OF PRIVATE PROPERTY OUTRIGHT INDUSTRY WAS NEVER NATIONALIZED THOUGH THE BANKING EXPORTING AND AGRICULTURAL SECTORS UNFORTUNATELY WERE MOST COMPANIES MANAGED TO HOLD THEIR OWN DESPITE THE MOST DIFFICULT OF WARTIME CONDITIONS AND AFTER FREEMARKETORIENTED ALFREDO CRISTIANI WAS ELECTED PRESIDENT IN 1989 THE ECONOMY BEGAN TO PICK UP AND IS TODAY GROWING AT A HEALTHY RATE IN NICARAGUA BY CONTRAST PRACTICALLY EVERYTHING WAS NATIONALIZED UNDER A STRICT REGIMEN OF ABSOLUTE SOCIALIST PLANNING ARBITRARY SEIZURE OF PROPERTY BECAME COMMONPLACE AN 11 BILLION INFUSION OF AID FROM AROUND THE WORLD NEARLY THREE TIMES THE AMOUNT OF MONEY PER CAPITA THAT EL SALVADOR RECEIVED FROM THE US FAILED TO STEM HYPERINFLATION PER CAPITA GNP DROPPED TO A LEVEL BELOW HAITI'S WHILE HYPERINFLATION HAS NOW BEEN HALTED THE ECONOMY CAN'T SHAKE ITS MARXIST HANGOVER GROWTH IS AT A STANDSTILL AND THE CURRENCY WAS JUST DEVALUED DESPITE INFUSIONS OF FOREIGN AID IN EL SALVADOR A STRING OF INTERNATIONALLY VETTED ELECTIONS HAS LED TO SEVERAL ORDERLY TRANSFERS OF POWER TIME AND AGAIN VOTERS OVERWHELMINGLY REJECTED THE GUERRILLAS' POLITICAL AND ECONOMIC AGENDA WHEN IT WAS ON THE BALLOT AND NOW THAT THE GUERRILLAS HAVE GRUDGINGLY ACCEPTED THEIR POPULAR DEFEAT A GENUINE HEALING PROCESS HAS BEGUN OLDTIME OLIGARCHS LIKE ROBERTO PALOMO ARE PROVIDING INDUSTRIAL TRAINING FOR EXGUERRILLA COMBATANTS THOUSANDS OF SALVADORANS WHO HAD FLED THE ECONOMIC AND POLITICAL RAVAGES OF WAR ARE RETURNING HOME MIDDLECLASS HOUSING PROJECTS ARE SPROUTING UP ALL OVER SAN SALVADOR SKILLS AND CAPITAL PICKED UP IN THE US ARE BEING APPLIED WITH SALVADORAN WILLPOWER TO HUNDREDS OF NEW ENTERPRISES INTERNATIONAL INVESTORS WHO HAD LEFT EL SALVADOR WHEN GUERRILLA KIDNAPPINGS AND KILLINGS OF BUSINESSMEN EXPLODED IN THE LATE 1970S ARE DISCUSSING TERMS FOR THEIR RETURN IN NICARAGUA THE SANDINISTAS LOST A POPULAR ELECTION IN FEBRUARY 1990 BUT BEFORE THE TRANSFER OF POWER IN APRIL 1990 THEY GAVE PARTY LOYALISTS MOST OF THE GOVERNMENT'S ASSETS INCLUDING PROPERTIES CONFISCATED FOR THE WELFARE OF THE COUNTRY NICARAGUAN EXPATRIATES WHO HAD THOUGHT OF RETURNING TO CLAIM THEIR PROPERTY AND START A NEW LIFE DECIDED TO STAY PUT SOME NICARAGUANS CONTINUE TO FIGHT FOR THE RETURN OF THEIR CONFISCATED PROPERTIES BUT THE LAST DIRECTOR OF THE ASSOCIATION OF CONFISCATED PROPERTIES ARGES SEQUEIRA WAS MURDERED IN NICARAGUA ON NOVEMBER 21 1992 THE GOVERNMENT IDENTIFIED THREE MEN WITH THE ARMY AND THE SECRET POLICE AS HAVING CONSPIRED TO KILL MR SEQUEIRA BUT FAILED TO CAPTURE THEM SOMEHOW TODAY'S STORY HASN'T ATTRACTED MUCH ATTENTION AT THE UN OR ON AMERICAN TELEVISION BUT IT SEEMS TO US THAT THE RULE OF LAW IS ADVANCING NICELY IN EL SALVADOR THAT THE CURRENT HUMAN RIGHTS PROBLEM IS IN NICARAGUA AND THAT IF CONGRESS IS GOING TO BLACKLIST SALVADOR IT MIGHT TAKE A LOOK AT NICARAGUA TOO AND THAT IF WE'RE GOING TO REVISIT THE ATROCITIES OF WAR WE OUGHT TO REMEMBER WHAT THE WAR WAS ABOUT AND TAKE SOME NOTE OF HISTORY'S VERDICT ON THE MORAL CLAIMS OF THE CONTENDING SIDES 9303190013 930319 LAW GERMAN INVESTOR BORLINGHAUS IS CHARGED WITH OBSTRUCTING JUSTICE IN TRADING CASE BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A GERMAN INVESTOR BELIEVED TO BE PART OF AN INTERNATIONAL INSIDERTRADING RING WAS CHARGED WITH OBSTRUCTING JUSTICE AND ILLEGALLY BRINGING INTO THE US MORE THAN 200000 IN CASH FROM ALLEGEDLY ILLEGALTRADING PROFITS THE THREECOUNT INDICTMENT AGAINST MICHAEL BORLINGHAUS FORMER HEAD OF DEFUNCT NEW YORK INVESTMENT FIRM FROST & SULLIVAN STEMS FROM AN INSIDERTRADING CASE FILED IN THE FALL AGAINST A FORMER PARALEGAL AT SKADDEN ARPS SLATE MEAGHER & FLOM THE INDICTMENT ALLEGES THAT MR BORLINGHAUS MADE ILLEGAL PROFITS OF 400000 BY TRADING ON INFORMATION FROM THAT INSIDERTRADING SCHEME INDIVIDUALS FAMILIAR WITH THE CASE SAID MR BORLINGHAUS ALSO IS UNDER INVESTIGATION IN CONNECTION WITH A SEPARATE INSIDERTRADING CASE IN LOS ANGELES INVOLVING TRADING ON INFORMATION ABOUT THE 1990 TAKEOVER OF MOTEL 6 LP BY FRANCE'S ACCOR SA MR BORLINGHAUS INITIALLY WAS DETAINED IN NEW YORK BY FEDERAL AUTHORITIES LAST WEEK WITHOUT BAIL AT THE REQUEST OF PROSECUTORS ON TUESDAY US MAGISTRATE JUDGE THEODORE KATZ SET BAIL AT 250000 WHICH MR BORLINGHAUS HASN'T POSTED THE GOVERNMENT'S REQUEST FOR DETENTION AND THE HIGH BAIL IS UNUSUAL IN THIS KIND OF WHITECOLLAR CASE LAWYERS INVOLVED SAID THAT PROSECUTORS HAVE TAPES OF CONVERSATIONS IN WHICH MR BORLINGHAUS ALLEGEDLY THREATENED TO HARM FORMER ASSOCIATES COOPERATING WITH INVESTIGATORS JOSEPH SULIK MR BORLINGHAUS'S ATTORNEY SAID HIS CLIENT PLANS TO FIGHT THE CHARGES HE ALSO SAID MR BORLINGHAUS DIDN'T THREATEN PEOPLE COOPERATING WITH THE INVESTIGATION AMONG THOSE SAID TO BE COOPERATING ARE LEONARD BELLEZZA A FORMER EXECUTIVE OF RH MACY & CO WHO WAS A NEIGHBOR OF MR BORLINGHAUS AND EDWIN KARGER A FORMER INTERNATIONAL BUSINESS MACHINES CORP EXECUTIVE WHO WAS AN ACQUAINTANCE OF MR BELLEZZA THE TWO MEN HAVEN'T BEEN CHARGED ACCORDING TO THE BORLINGHAUS INDICTMENT MR KARGER RECEIVED INSIDE INFORMATION ABOUT CIE DE SAINT GOBAIN SA'S 1990 TENDER OFFER FOR NORTON CO FROM AN IBM COWORKER WHOSE SON WAS A FRIEND OF THE SKADDEN PARALEGAL AT A MEETING AT THE PETER LUGER STEAKHOUSE IN BROOKLYN MR KARGER WHO USED THE PSEUDONYM MR LIEBERMAN ALLEGEDLY PASSED THE TIP ON TO MESSRS BELLEZZA AND BORLINGHAUS AND THE THREE AGREED TO SHARE PROFITS FROM TRADING ON THE INFORMATION THE INDICTMENT SAID THE THREE HAD PROFITS TOTALING MORE THAN 400000 FROM TRADING IN THE NORTON STOCK PROSECUTORS ALLEGED LAWYERS INVOLVED IN THE CASE ALSO SAID THAT PROSECUTORS AND THE SECURITIES AND EXCHANGE COMMISSION BELIEVE MR BORLINGHAUS AND FROST & SULLIVAN HAD ADDITIONAL SOURCES OF INSIDE INFORMATION ON WHICH THEY TRADED THROUGH ACCOUNTS IN EUROPE BUT NO CHARGES HAVE BEEN FILED ALLEGING SUCH TRANSACTIONS DAVID MEISTER THE ASSISTANT US ATTORNEY HANDLING THE BORLINGHAUS CASE AS WELL AS THE SKADDEN AND MOTEL 6 CASES SAID THE INVESTIGATIONS ARE ALL CONTINUING MR BORLINGHAUS BRINGS TO EIGHT THE NUMBER OF PEOPLE CRIMINALLY CHARGED IN THE TWO CASES THE SEC HAS FILED CIVIL SUITS AGAINST MORE THAN TWO DOZEN PEOPLE IN CONNECTION WITH THE CASES THE ALLEGATIONS ABOUT MR BORLINGHAUS AND HIS FIRM WERE FIRST MADE PUBLIC IN AUGUST IN A BUSINESS WEEK ARTICLE THAT WAS BASED ON INFORMATION PROVIDED BY HEINZ GREIN ALSO A GERMAN NATIONAL AND MR BORLINGHAUS'S FORMER PARTNER AT FROST & SULLIVAN MR MEISTER DECLINED TO SAY WHETHER MR GREIN IS UNDER INVESTIGATION MR SULIK MR BORLINGHAUS'S ATTORNEY DECLINED TO COMMENT ON ANY ALLEGATIONS OTHER THAN THOSE MADE IN THE INDICTMENT 9303190012 930319 BIG BOARD'S PROFIT AND REVENUE SET HIGHS LAST YEAR BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE EARNED NEARLY 41 MILLION ON RECORD REVENUE OF ALMOST 420 MILLION LAST YEAR SMASHING ITS 1987 PROFIT MILESTONE EVEN AS ITS MARKET SHARE CONTINUED TO SHRINK AND BIG BOARD OFFICIALS SAY THEY EXPECT THE FIRST QUARTER TO BE ITS BEST EVER THANKS TO A SLEW OF COMPANIES LISTING THEIR STOCKS ON THE EXCHANGE AND TO BUSY MARKETS SO FAR THIS YEAR NEWSTOCK LISTINGS ARE RUNNING ABOUT ONE A TRADING DAY FOR A TOTAL OF 50 AND AVERAGE DAILY TRADING VOLUME HAS JUMPED 34 TO 2706 MILLION SHARES STILL DESPITE THE GAINS THE 200YEAROLD BIG BOARD IS VIGOROUSLY FENDING OFF AN ATTACK ON ITS FRANCHISE FROM ELECTRONIC AND OVERSEAS EXCHANGES EVEN THOUGH AVERAGE DAILY VOLUME ON THE BIG BOARD IN 1992 VAULTED TO A NEW HIGH OF 202 MILLION SHARES THE EXCHANGE'S MARKET SHARE AS TRACKED BY TWO YARDSTICKS SLIPPED LAST YEAR THE BIG BOARD'S MARKET SHARE AS MEASURED BY THE NUMBER OF TRADES IN BIG BOARDLISTED STOCKS SLIPPED TO 645 LAST YEAR FROM 67 IN 1991 MEANWHILE THE BIG BOARD'S SHARE OF TRADING VOLUME IN THOSE STOCKS ANOTHER GAUGE OF MARKET SHARE THAT EXCHANGE OFFICIALS PREFER TO USE ALSO DROPPED SLIDING TO 817 FROM 823 BIG BOARD OFFICIALS SAY THE EXCHANGE'S MARKET SHARE AS MEASURED BY BOTH BAROMETERS HAS IMPROVED SO FAR THIS YEAR WITH SHARE VOLUME RISING TO MORE THAN 83 IN PART BECAUSE OF REBATES THE EXCHANGE RECENTLY INTRODUCED TO BROKERAGE FIRMS THAT EXECUTE SMALL TRADES FOR INVESTORS IT'S TOO EARLY TO MAKE A GIGANTIC JUDGMENT ON THIS THING SAID BIG BOARD CHAIRMAN WILLIAM H DONALDSON BUT THE NEW PRICING SYSTEM HAS RESULTED WE BELIEVE IN A TURN BEGINNING AT THE LOW END OF THE MARKET SMALL TRADES WHICH IS THE END OF THE MARKET WHERE WE HAD EROSION FOR INSTANCE MR DONALDSON NOTED THAT ORDERS IN CERTAIN STOCKS THAT WERE INCREASINGLY EXECUTED AWAY FROM THE EXCHANGE HAVE STARTED TO RETURN TO THE FLOOR BUT BIG BOARD OFFICIALS ARE OBVIOUSLY STILL SENSITIVE ABOUT THE MARKET SHARE EROSION THE EXCHANGE IS STARTING TO UNBUNDLE BIG TRADES THAT ARE LUMPED TOGETHER AND EXECUTED AT THE BEGINNING OF THE TRADING DAY THE EXCHANGE NOW COUNTS EACH ORDER SEPARATELY WHICH INCREASES THE NUMBER OF TRADES REPORTED THOUGH NOT THE VOLUME LOOKED AT THIS WAY THE EXCHANGE'S MARKET SHARE BASED ON THE NUMBER OF TRADES WOULD RISE TO 75 TO 80 BIG BOARD OFFICIALS SAY LAST YEAR'S 12 GAIN IN REVENUE OCCURRED PARTLY BECAUSE A RECORD 251 COMPANIES LISTED THEIR STOCKS ON THE BIG BOARD BRINGING ITS ROSTER OF LISTED COMPANIES TO A RECORD 2089 THE NUMBER OF LISTED COMMON STOCKS IS 2068 ABOUT HALF OF THE NEW LISTINGS REPRESENTED INITIAL PUBLIC STOCK OFFERINGS AND ANOTHER 44 REFLECTED COMPANIES THAT HAVE MOVED TO THE BIG BOARD FROM THE NASDAQ OVERTHECOUNTER MARKET AMONG THE NEW LISTINGS WERE 115 COMPANIES WITH MARKET CAPITALIZATIONS TOTAL STOCK MARKET VALUES OF LESS THAN 200 MILLION EACH THE EXCHANGE IS STRONGER THAN EVER SAID MR DONALDSON AND THE MAIN MESSAGE IS THAT I THINK THIS PLACE IS EXTREMELY VIABLE AND ENTREPRENEURIAL AND PEOPLE TEND NOT TO GIVE IT CREDIT FOR THAT THE BIG BOARD'S PROFIT LAST YEAR SURPASSED 1987'S 341 MILLION AND WAS MORE THAN TRIPLE 1991'S EARNINGS OF 119 MILLION WHICH WERE REDUCED BY A 205 MILLION ACCOUNTING CHARGE 9303190011 930319 LAW JURY AWARDS 572000 TO EXECUTIVE FIRED DUE TO BRAIN CANCER CHICAGO A JURY AWARDED DAMAGES OF 572000 TO AN EXECUTIVE WHO WAS FIRED BECAUSE HE HAD BRAIN CANCER IN THE FIRST JOBDISCRIMINATION CASE TO GO TO TRIAL UNDER THE AMERICANS WITH DISABILITIES ACT ATTORNEYS WITH THE US EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WHICH BROUGHT THE CASE ON BEHALF OF CHARLES H WESSEL PRAISED THE VERDICT AND SAID IT WOULD SEND A MESSAGE TO EMPLOYERS THE VERDICT WAS AGAINST CLOSELY HELD AIC SECURITY INVESTIGATIONS LTD A CHICAGO SECURITYGUARD COMPANY AND ITS OWNER RUTH VRDOLYAK THE EEOC SAID MS VRDOLYAK MADE THE DECISION TO FIRE MR WESSEL WHO WAS THE COMPANY'S EXECUTIVE DIRECTOR MR WESSEL 59 YEARS OLD WON'T RECEIVE THE TOTAL JURY VERDICT BECAUSE FEDERAL LAW CAPS THE AMOUNT OF DAMAGES TO BE PAID UNDER THE ADA FOR COMPANIES THE SIZE OF AIC WHICH HAS 300 EMPLOYEES THE CAP IS 200000 BUT ATTORNEYS SAID COURTS HAVEN'T YET DETERMINED WHETHER THAT APPLIES TO EACH DEFENDANT ALSO SOME COMPENSATORY DAMAGES WHICH ARE MEANT TO COMPENSATE THE PLAINTIFF FOR ACTUAL HARM AREN'T AFFECTED BY THE CAP THE JURY AWARDED COMPENSATORY DAMAGES OF 22000 IN BACK PAY AND 50000 FOR PAIN AND SUFFERING THE JURY WHICH UNDER THE LAW ISN'T TOLD BEFOREHAND OF THE CAP ON DAMAGE AWARDS DECIDED THAT THE COMPANY AND MS VRDOLYAK EACH SHOULD PAY 250000 IN PUNITIVE DAMAGES WHICH ARE MEANT TO PUNISH AND DETER WRONGDOING THE CASE WAS EXPEDITED BECAUSE OF MR WESSEL'S HEALTH ALTHOUGH HE WAS RECENTLY HOSPITALIZED MR WESSEL WAS ABLE TO CARRY OUT HIS DUTIES LAST JULY WHEN HE FIRED JAMES SHERMAN AN ATTORNEY FOR THE DEFENDANTS SAID HE EXPECTS TO APPEAL 9303190010 930319 TECHNOLOGY & MEDICINE HIGH IRON LEVEL'S LINK TO HEART ATTACK IS WEAKENED BUT QUESTIONS REMAIN BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON A STUDY HERE FOUND THAT HIGH IRON LEVELS INCREASED THE RISK OF HEART ATTACKS BY ONLY ABOUT 10 CONTRARY TO THE RESULTS OF A FINNISH STUDY LAST YEAR SUGGESTING HIGH IRON MORE THAN DOUBLES THE RISK OF ATTACKS RESEARCHERS WHO CONDUCTED THE STUDY HOWEVER CAUTIONED THAT IT DIDN'T SETTLE THE QUESTION OF WHETHER A HIGH IRON LEVEL IS A RISK FACTOR FOR HEART DISEASE THE STUDY LIKE THE EARLIER FINNISH ONE ALSO DIDN'T ADDRESS THE CRITICAL ISSUE OF WHETHER LOWERING IRON LEVELS CUTS THE RISK OF HEART ATTACKS WE FOUND NO SIGNIFICANT EFFECT OF IRON LEVELS AS A PREDICTOR OF HEART ATTACKS SAID CHARLES HENNEKENS A HARVARD UNIVERSITY RESEARCHER AND COAUTHOR OF THE LATEST STUDY BUT THE TAKEHOME MESSAGE IS THAT RESEARCHERS NEED TO GATHER MORE DATA ON THE ISSUE THE HARVARD TEAM EXAMINED BLOOD LEVELS OF FERRITIN WHICH INDICATES THE AMOUNT OF STORED IRON IN THE BODY AND THE RATE OF HEART ATTACKS IN 14916 MALE US PHYSICIANS AGED 40 TO 84 MEN WHO HAD FERRITIN LEVELS GREATER THAN 200 MICROGRAMS A LITER HAD ONLY ABOUT A 10 GREATER RATE OF HEART ATTACKS THAN THOSE WITH LOWER LEVELS A DIFFERENCE THAT MAY HAVE BEEN DUE TO CHANCE RATHER THAN TO THE EFFECTS OF IRON THE STUDY WAS REPORTED THIS WEEK AT A MEETING OF THE AMERICAN HEART ASSOCIATION IN SANTA FE NM IN THE EARLIER FINNISH STUDY LED BY JUKKA SALONEN AT THE UNIVERSITY OF KUOPIO RESEARCHERS FOUND THAT MEN WITH FERRITIN LEVELS OVER 200 MICROGRAMS A LITER WERE ABOUT 22 TIMES AS LIKELY TO HAVE HEART ATTACKS AS THOSE WITH LOWER LEVELS THE STUDIES' DIFFERENT RESULTS MAY BE EXPLAINED BY THE FACT THAT THE FINNISH MEN HAD MUCH HIGHER LEVELS OF BAD OR LDL CHOLESTEROL THAN THE US PHYSICIANS DID DR SALONEN SAID IN AN INTERVIEW THE FINNISH STUDY SUGGESTED THAT IRON AND LDL CHOLESTEROL WORK SYNERGISTICALLY TO RAISE HEART ATTACK RISK AN EFFECT THAT PROBABLY DIDN'T COME INTO PLAY IN THE HARVARD STUDY MANY OF THE US DOCTORS ALSO WERE TAKING AN ASPIRIN EVERY OTHER DAY AS PART OF A DIFFERENT STUDY ASPIRIN A BLOOD THINNER IS KNOWN TO CAUSE LOSS OF BLOOD THROUGH THE GASTROINTESTINAL TRACT THUS LOWERING IRON LEVELS THAT MAY HAVE BIASED THE RESULTS OF THE HARVARD STUDY ALTHOUGH A PRELIMINARY ANALYSIS OF THE DATA SUGGESTS IT DIDN'T SAID HARVARD'S DR HENNEKENS IN ANY CASE WE WON'T GET THE FINAL ANSWERS ON IRON AND THE HEART UNTIL WE HAVE DATA ON RISK IN PEOPLE WITH NO STORED IRON SAID JEROME SULLIVAN A RESEARCHER AT THE VETERANS AFFAIRS MEDICAL CENTER IN CHARLESTON SC WHO FIRST PROPOSED THE IRONHEART DISEASE LINK HE ADDED THAT THE DOCTORS IN THE HARVARD STUDY HAD AN AVERAGE FERRITIN LEVEL WELL ABOVE 200 MICROGRAMS A LITER COMPARED WITH 100 AND 200 MICROGRAMS A LITER IN MOST ADULT US MALES MENSTRUATING WOMEN UNDER 40 TYPICALLY HAVE LITTLE STORED IRON AND VERY RARELY HAVE HEART ATTACKS A SECOND STUDY REPORTED BY HARVARD RESEARCHERS AT THE SANTA FE MEETING PROVIDED MILD SUPPORT FOR THE IRONHEART DISEASE LINK THE TEAM FOUND THAT STUDY SUBJECTS WHO HAD HIGH DIETARY LEVELS OF IRON FROM ALL FOODS DIDN'T HAVE SIGNIFICANTLY INCREASED RISK OF CORONARY PROBLEMS SUCH AS HEART ATTACKS AND BYPASS OPERATIONS BUT THOSE WHO HAD HIGH DIETARY IRON FROM EATING MEAT HAD A SIGNIFICANTLY GREATER RISK OF HEART DISEASE THAN DID THOSE WHO HAD LOWER IRON INTAKE FROM MEAT THE INCREASED RISK WASN'T EXPLAINED BY FAT INTAKE THE RESEARCHERS SAID MEAT IS THE MAIN SOURCE OF IRON IN MOST AMERICAN DIETS IRON IN OTHER FOODS IS ABSORBED MUCH LESS WELL THAN FROM MEAT HENCE EVEN PEOPLE WHO EAT LOTS OF IRONCONTAINING FOODS MAY HAVE LOW LEVELS OF IRON UNLESS THEY ALSO EAT MEAT SAID ALBERTO ASCHERIO COAUTHOR OF THE HARVARD STUDY 9303190008 930319 TECHNOLOGY & MEDICINE MERCK TEAM'S VACCINE COULD LEAD TO NEW WAYS TO PREVENT DISEASES BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS AT MERCK & CO SAID THEY DEVELOPED A NEW TYPE OF VACCINE THAT MAY SOMEDAY LEAD TO A SIMPLER AND SAFER WAY TO PREVENT A WIDE RANGE OF DISEASES THE RESEARCHERS SAID THEY USED THE NEW TECHNIQUE TO PROTECT LABORATORY MICE AGAINST A STRAIN OF THE INFLUENZA VIRUS THE VACCINE'S EFFECTIVENESS STARTLED THE SCIENTISTS WHO SAID THEY WERE SURPRISED THAT THE GENEBASED TECHNIQUE WORKED AT ALL IT'S NOT JUST INNOVATIVE IT EMPLOYS A METHOD SCIENTISTS JUST WOULDN'T EXPECT TO WORK SAID MARGARET A LIU DIRECTOR OF IMMUNOLOGY AT MERCK'S WEST POINT PA RESEARCH FACILITY IT OPENS UP A WHOLE AREA OF RESEARCH POSSIBILITIES IN AN EXPERIMENT REPORTED IN TODAY'S ISSUE OF THE JOURNAL SCIENCE THE MERCK SCIENTISTS LED BY DR LIU PRODUCED IMMUNITY AGAINST A FLU VIRUS STRAIN BY INJECTING THE MICE WITH BITS OF DNA OR GENETIC MATERIAL TAKEN FROM A TOTALLY DIFFERENT STRAIN OF THE FLU VIRUS THE TECHNIQUE SUGGESTS THAT SCIENTISTS MAY BE ABLE TO PRODUCE A UNIVERSAL FLU SHOT SOMEDAY THAT COULD PROTECT AGAINST A WIDE RANGE OF VIRAL STRAINS CURRENTLY THE FLU VACCINES GIVEN TO PEOPLE EVERY AUTUMN ARE ALTERED EACH YEAR BECAUSE THE FLU VIRUS CIRCULATING ABOUT THE WORLD CHANGES ANNUALLY BUT EVEN MORE IMPORTANT THE SCIENTISTS BELIEVE THE METHOD EMPLOYED MAY PRODUCE NEW VACCINE STRATEGIES AGAINST AIDS HERPES AND EVEN SOME TYPES OF CANCER STILL THE RESEARCHERS NOTED THAT MUCH WORK MUST BE DONE BEFORE THEY CAN SHOW THE TECHNIQUE IS USEFUL AND SAFE MOST VACCINES ARE MADE FROM KILLED OR INACTIVATED VERSIONS OF A VIRUS THAT TRIGGER AN IMMUNE REACTION THAT CAN COUNTER A VIRAL INVASION FOR CERTAIN DISEASES HOW EVER THIS TYPE OF VACCINE DOESN'T WORK OR IS SIMPLY TOO DANGEROUS TO TRY THEREFORE IN RECENT YEARS SCIENTISTS HAVE DEVELOPED VACCINES THAT ARE MADE UP OF JUST BITS OF THE VIRUS USUALLY A PROTEIN THAT SITS ON THE VIRUS'S OUTER COAT BUT THIS STRATEGY ISN'T ALWAYS EFFECTIVE BECAUSE THE VIRAL COATS OFTEN MUTATE WHICH IS ONE REASON THE FLU VIRUS IS SO VARIABLE BY USING A NEW METHOD DEVELOPED BY SCIENTISTS AT VICAL INC A BIOTECHNOLOGY COMPANY IN SAN DIEGO THE MERCK RESEARCHERS PRODUCED IMMUNITY BY INJECTING MICE WITH A GENE FROM THE INSIDE OF THE VIRUS THAT'S CONSERVED FROM STRAIN TO STRAIN DURING MUTATIONS SEVERAL YEARS AGO SCIENTISTS AT VICAL REPORTED THE SURPRISING DISCOVERY THAT GENES COULD BE DIRECTLY INJECTED INTO MUSCLE CELLS THEY FOUND THAT THE GENES THEN TRIGGERED THE MUSCLE CELLS TO PRODUCE A PROTEIN PREVIOUSLY SCIENTISTS HAD THOUGHT THAT THEY NEEDED TO FIND A CARRIER OF SOME SORT SUCH AS A DEACTIVATED VIRUS TO SLIDE A FOREIGN GENE INTO A CELL IN THE NEW EXPERIMENT THE MERCK SCIENTISTS INJECTED THE MICE WITH A GENE THAT NORMALLY PRODUCES A PROTEIN DEEP INSIDE THE FLU VIRUS THE MOUSE MUSCLE CELLS THEN MANUFACTURED THE VIRUS PROTEIN ON THEIR SURFACE ONCE EXPOSED THE PROTEINS TRIGGERED THE MOUSE'S IMMUNE SYSTEM TO MAKE WHITE BLOOD CELLS CALLED KILLER T CELLS THAT CAN DESTROY CELLS INFECTED BY THE FLU VIRUS IN THE EXPERIMENT THE SCIENTISTS USED A GENE TAKEN FROM ONE STRAIN OF FLU VIRUS AND PRODUCED IMMUNITY AGAINST A TOTALLY DIFFERENT STRAIN THE SCIENTISTS BELIEVE THIS SAME METHOD MIGHT BE EMPLOYED TO PRODUCE KILLER TCELLS AGAINST HIV THE VIRUS THAT CAUSES AIDS OR CERTAIN CANCERS HARRIET ROBINSON OF THE UNIVERSITY OF MASSACHUSETTS MEDICAL CENTER WORCESTER MASS HAS USED A SIMILAR TECHNIQUE TO PROTECT CHICKENS AGAINST THE FLU VIRUS THOUGH THAT EXPERIMENT HAS YET TO BE PUBLISHED SCIENTISTS SAY SEVERAL OTHER LABS ARE RACING TO TEST THE TECHNIQUE IN A WIDE RANGE OF ILLNESSES 9303190007 930319 BUSINESS BRIEF ALLEGHENY LUDLUM CORP COMPANY EXPECTS TO POST STRONG' FIRSTPERIOD RESULTS ALLEGHENY LUDLUM CORP'S PRESIDENT AND CHIEF EXECUTIVE ROBERT P BOZZONE SAID IN A MEETING WITH SECURITIES ANALYSTS IN NEW YORK THAT THE COMPANY EXPECTS TO REPORT STRONG 1993 FIRSTQUARTER REVENUE AND EARNINGS COMPARED WITH THE 1992 FIRST QUARTER AND MOST RECENT FOURTH QUARTER ALLEGHENY LUDLUM BASED IN PITTSBURGH PRODUCES SPECIALTY SHEET STEEL AND METALS INCLUDING STAINLESS STEELS ELECTRICAL STEELS AND HIGHTECH ALLOYS IN THE 1992 FIRST QUARTER THE COMPANY HAD NET INCOME OF 132 MILLION OR 40 CENTS A SHARE ON SALES OF 2644 MILLION IN THE FOURTH QUARTER WHICH ENDED JAN 3 1993 ALLEGHENY LUDLUM EARNED 112 MILLION OR 34 CENTS A SHARE ON SALES OF 2566 MILLION THE COMPANY ALSO SAID THAT THE MARCH RATE OF INCOMING ORDERS FOR STAINLESS STEEL IS HIGHER THAN THAT OF MARCH 1992 AND IS HIGHER THAN THE MONTHLY AVERAGE FOR THE PAST FIVE YEARS 9303190006 930319 BUSINESS BRIEF LDI CORP FISCAL FOURTHQUARTER NET FELL 50 TO 15 MILLION LDI CORP CITING A SLOWDOWN IN ITS COMPUTER LEASING BUSINESS POSTED 50 LOWER EARNINGS FOR THE FISCAL FOURTH QUARTER ENDED JAN THE CLEVELAND COMPANY REPORTED QUARTERLY NET INCOME OF 15 MILLION OR 22 CENTS A SHARE COMPARED WITH YEARAGO NET OF 3 MILLION OR 45 CENTS A SHARE REVENUE FELL TO 79 MILLION FROM 1064 MILLION FOR FISCAL 1992 THE COMPANY POSTED NET OF 7 MILLION OR 103 A SHARE COMPARED WITH 104 MILLION OR 154 A SHARE EARNED THE PREVIOUS YEAR REVENUE FELL TO 3437 MILLION FROM 3627 MILLION LDI EXECUTIVES LOWERED ESTIMATES SEVERAL TIMES LAST YEAR IN JUNE LDI SAID IT EXPECTED TO EARN 160 A SHARE IN FISCAL 1992 BUT BY SEPTEMBER THE COMPANY HAD LOWERED THE ESTIMATE TO 140 ANALYSTS LOWERED THEIR ESTIMATES FURTHER IN NOVEMBER AND DECEMBER AFTER MEETING WITH THE COMPANY THE CONSENSUS ENDED UP BETWEEN 1 A SHARE AND 110 A SHARE LDI LEASES DISTRIBUTES AND SERVICES COMPUTER AND OTHER HIGHTECHNOLOGY PRODUCTS 9303190005 930319 BUSINESS BRIEF POPE & TALBOT INC SURGE IN FIRSTQUARTER NET SEEN AS LUMBER PRICES SOAR POPE & TALBOT INC CITING AN EXPLOSION IN LUMBER PRICES SAID IT EXPECTS TO POST FIRSTQUARTER EARNINGS OF MORE THAN 75 CENTS A SHARE OR 87 MILLION UP SHARPLY FROM A YEAR EARLIER THE ANNOUNCEMENT LIFTED POPE & TALBOT'S STOCK BY NEARLY 10 OR 250 A SHARE TO 28125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING POPE & TALBOT A PORTLAND ORE PAPER PULP AND WOOD PRODUCTS CONCERN IS BENEFITING FROM SHARP INCREASES IN LUMBER PRICES LUMBER ACTIVITIES REPRESENT ABOUT 45 OF THE COMPANY'S SALES AND THE PRICE OF CANADIAN LUMBER WHICH REPRESENTS ABOUT TWOTHIRDS OF THE COMPANY'S LUMBER SALES HAS RISEN ABOUT 70 SINCE THE END OF LAST YEAR IN THE 1992 FIRST QUARTER THE COMPANY EARNED ONE CENT A SHARE ON REVENUE OF 1271 MILLION 9303190004 930319 UAL PROJECTS DEEPER CUTS FOR UNITED AIR BY DAVE KANSAS AND BRETT PULLEY STAFF REPORTERS OF THE WALL STREET JOURNAL UAL CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER STEPHEN WOLF PROJECTED DEEPER SPENDING CUTS FOR UNITED AIRLINES AND CONTINUED HIS CAMPAIGN TO GAIN UNION CONCESSIONS AT A MEETING WITH AIRLINE INDUSTRY ANALYSTS IN NEW YORK CITING FUNDAMENTAL CHANGES IN THE TRAVEL INDUSTRY INCLUDING PERMANENT WHITECOLLAR LAYOFFS AND BOTTOMFISHING BUSINESS FLIERS MR WOLF SAID THE COMPANY'S 800 MILLION 1993 CAPITAL SPENDING BUDGET ALREADY DOWN FROM 14 BILLION WOULD PROBABLY BE CUT EVEN FURTHER MR WOLF SAID COSTCUTTING PROGRAMS WITH SUPPLIERS HAVE ALREADY NETTED CHICAGOBASED UAL SAVINGS IN THE DOUBLEDIGIT MILLIONS HE SAID THE AIRLINE EXPECTS TO GAIN FURTHER SAVINGS THROUGH REDUCING AIRCRAFT AND NONAIRCRAFT EXPENSES AND THROUGH A COSTREDUCTION PLAN WITH THE COMPANY'S EMPLOYEES BUT SO FAR THE AIRLINE'S THREE UNIONS HAVEN'T ACCEPTED THE COMPANY'S ATTEMPT TO GAIN CONCESSIONS INCLUDING A 5 BASE PAY CUT AN INCREASE IN MEDICAL COPAYMENTS AND A 10 INCREASE IN PRODUCTIVITY THE AIRLINE'S MACHINISTS AND FLIGHT ATTENDANTS HAVE FLATOUT REJECTED THE PROPOSAL WHILE PILOTS HAVE AGREED ONLY TO STUDY IT UAL SAID IT RECENTLY COMPLETED NEGOTIATIONS WITH BOEING CO CONCERNING AIRPLANE ORDER DEFERRALS BUT MR WOLF WOULD NOT OUTLINE THE AGREEMENT SAYING ONLY THAT IT MAY BE A LARGER DEFERRAL THAN MANY EXPECT UNITED ANNOUNCED IN DECEMBER IT WAS SEEKING TO REDUCE ITS BOEING AIRCRAFT ORDERS SIGNIFICANTLY UNITED HAS A TOTAL OF 175 AIRCRAFT ON ORDER AND OPTIONS TO BUY ANOTHER 258 FROM THE SEATTLEBASED MANUFACTURER UAL'S CURRENT PLANS CALL FOR THE AIRLINE TO ADD 159 NEW AIRCRAFT BETWEEN THIS YEAR AND 1996 AT A COST OF 12 BILLION ONE INDUSTRY ANALYST ROSE ANN TORTORA OF DONALDSON LUFKIN & JENRETTE HAS PROJECTED THAT FIGURE TO BE CUT IN HALF THROUGH THE CANCELLATION AND DEFERRAL OF AIRCRAFT ORDERS UAL OFFICIALS SAID NO DEFINITIVE PLANS WILL BE ANNOUNCED UNTIL AGREEMENTS ARE REACHED WITH ENGINE MAKERS PRATT & WHITNEY A UNIT OF UNITED TECHNOLOGIES CORP AND GENERAL ELECTRIC CO'S GE AIRCRAFT ENGINES MR WOLF SAID THAT THE AGREEMENT REACHED WITH BOEING WOULD NOT AFFECT BOEING'S PREVIOUSLY ANNOUNCED PLANS FOR LAYOFFS UAL IS EXPECTED TO BEGIN RECEIVING BOEING 777 JETS IN 1995 UAL ALSO HAS 50 AIRBUS INDUSTRIE A320 JETS ON FIRM ORDER AND 50 OPTIONS FOR THAT PLANE AS WELL UAL PRESIDENT JOHN POPE SAID NO DISCUSSIONS HAVE BEEN HELD TO CUT THOSE ORDERS BUT HE DID SAY THAT BY THE END OF THIS SUMMER WE WILL BE OUT OF THE BUSINESS OF TAKING NEW AIRCRAFT DELIVERIES UNTIL MAY 1995 WHEN THE FIRST BOEING 777S SHOW UP THE UNITED OFFICIALS SUBTLY WARNED OF JOB CUTBACKS BY NOTING THAT THE AIRLINE MAY BE FORCED TO LEASE THE A320S TO OTHER CARRIERS RATHER THAN INCUR COSTS TO BRING THE A320S INTO THE UNITED FLEET THIS IS NOT A THREAT BUT A FACT OF THE MARKET WE'RE LOOKING AT A LOT OF STRANGE THINGS MR WOLF SAID AND THERE ARE PARTS OF OUR BUSINESS THAT WE COULD HAVE SOMEONE ELSE DO FOR US MORE INEXPENSIVELY THAN WE CAN DO IT MEANWHILE DUFF & PHELPS CREDIT RATING CO DOWNGRADED THE SENIOR SECURED DEBT OF UNITED'S EQUIPMENT PASSTHROUGH CERTIFICATES FROM TRIPLEBPLUS TO TRIPLEB ALSO THE EQUIPMENT PASSTHROUGH CERTIFICATES OF AMR CORP'S AMERICAN AIRLINES WERE LOWERED TO TRIPLEBPLUS FROM SINGLEAMINUS AMERICAN'S EQUIPMENT TRUST CERTIFICATES WERE LOWERED TO TRIPLEB FROM TRIPLEBPLUS ABOUT 2 BILLION OF DEBT SECURITIES ARE AFFECTED BY THESE CHANGES THE RATING AGENCY SAID D&P SAID THESE DOWNGRADES REFLECT THE CONTINUING DETERIORATION IN PROFITABILITY AND CASH FLOW WITHIN THE AIRLINE INDUSTRY EXCESS INDUSTRY CAPACITY A WEAK DOMESTIC ECONOMY PRICE CUTTING AND AGGRESSIVE DEBT FINANCED CAPITAL SPENDING PROGRAMS CONTINUE TO PRESSURE OPERATING RESULTS 9303190003 930318 SUPERREGULATOR PROPOSED FOR ALL FINANCIAL SERVICES BOCA RATON FLA THE CHAIRMAN OF THE CHICAGO MERCANTILE EXCHANGE PROPOSED SCRAPPING THE SECURITIES AND EXCHANGE COMMISSION AND OTHER REGULATORY AGENCIES FOR A SINGLE SUPERREGULATOR THAT WOULD OVERSEE ALL FINANCIAL MARKETS BANKS AND INSURANCE COMPANIES CME CHAIRMAN JOHN F SANDNER WHO UNVEILED HIS PLAN AT THE ANNUAL FUTURES INDUSTRY ASSOCIATION CONFERENCE HERE SAYS IT IS AN EFFORT TO PARE DOWN FINANCIALSERVICES REGULATION HE SAYS HIS PROPOSAL COULD SAVE 300 MILLION A YEAR IN FEDERAL ADMINISTRATIVE COSTS THE PROPOSAL WOULD MERGE THE SEC THE COMPTROLLER OF THE CURRENCY BANKING REGULATION FUNCTIONS OF THE FEDERAL RESERVE BOARD THE OFFICE OF THRIFT SUPERVISION THE FEDERAL DEPOSIT INSURANCE CORP AND OTHER REGULATORY AGENCIES INTO A SINGLE CABINETLEVEL DEPARTMENT IN THE EXECUTIVE BRANCH THE PROPOSAL MAY NOT GO FAR IN WASHINGTON WHERE PREVIOUS PLANS TO CREATE A SINGLE REGULATOR FOR BANKS AND THRIFTS HAVE FALLEN APART AND EFFORTS TO MERGE JUST THE TWO AGENCIES OVERSEEING SECURITIES AND FUTURES HAVE BEEN SCUTTLED ONE VETERAN OF THE FIGHTS TO MERGE THE SECURITIES AND FUTURES REGULATORS REP EDWARD J MARKEY SAID HE AND HIS COLLEAGUES FOUND THAT WE COULD NEVER COME UP WITH A FORMULATION THAT WASN'T OPPOSED BY INDUSTRY OR BUREAUCRATIC TURF INTERESTS THE MASSACHUSETTS DEMOCRAT WHO SERVES AS CHAIRMAN OF THE HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE SAID THE EXPERIENCE HAS LEFT ME SOMEWHAT SKEPTICAL ABOUT THE PROSPECTS OF MOVING TO A SINGLE REGULATOR ABSENT HIGHLEVEL POLITICAL INTEREST OR ANOTHER CRISIS IN THE MARKETS 9303190002 930319 CANADIAN STEEL OUTPUT OTTAWA CANADIAN STEEL PRODUCTION TOTALED 276275 METRIC TONS IN THE WEEK ENDED SATURDAY A 61 DECLINE FROM 294320 TONS THE PREVIOUS WEEK BUT A 13 RISE FROM 272676 TONS A YEAR AGO STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 2770842 TONS A 38 INCREASE FROM 2669018 TONS A YEAR EARLIER 9303190001 930319 WHO'S NEWS TERRA INDUSTRIES INC TERRA INDUSTRIES INC SIOUX CITY IOWA JOHN R NORTON III WAS NAMED A DIRECTOR OF THIS PRODUCER OF FERTILIZER CROPPROTECTION PRODUCTS SEED AND SERVICES FOR AGRICULTURE SUCCEEDING J ROGER B PHILLIMORE WHO RESIGNED 9303190192 930225 GOD AND THE GHETTO BY GLENN C LOURY IT IS NOW 25 YEARS SINCE THE NATIONAL ADVISORY COMMISSION ON CIVIL DISORDERS POPULARLY KNOWN AS THE KERNER COMMISSION ISSUED ITS SCATHING REPORT ON THE URBAN RIOTS OF THE 1960S THE COMMISSION BLAMED WHITE RACISM FOR THE RIOTS AND CONCLUDED FAMOUSLY THAT OUR NATION IS MOVING TOWARD TWO SOCIETIES ONE BLACK ONE WHITE SEPARATE AND UNEQUAL MUCH HAS CHANGED IN THE INTERVENING YEARS INDEED MANY OF THE COMMISSION'S RECOMMENDED REFORMS HAVE BEEN ADOPTED YET THE PROBLEMS OF OUR INNER CITIES SEEM AS INTRACTABLE AS EVER THIS RAISES TROUBLING QUESTIONS ABOUT THE KERNER COMMISSION'S CONCLUSIONS AND FORCES US TO THINK AGAIN ABOUT WHAT MUST BE DONE PRESIDENT JOHNSON CREATED THE COMMISSION AFTER A SPATE OF VIOLENT DISTURBANCES IN CITIES ACROSS THE COUNTRY DURING THE SUMMER OF 1967 LEFT THE NATION IN CRISIS HE ORDERED FORMER ILLINOIS GOV OTTO KERNER AND HIS ASSOCIATES TO DETERMINE EXACTLY WHAT HAD HAPPENED IN THESE RIOTS WHY IT HAD HAPPENED AND WHAT SHOULD BE DONE TO PREVENT IT FROM HAPPENING AGAIN LESS THAN EIGHT MONTHS LATER THE COMMISSION ISSUED ITS FINDINGS DECLARING THAT THE RAGE ALIENATION AND HOPELESSNESS OF THE GHETTO WERE THE CONSEQUENCE OF RACIAL ISOLATION INFERIOR EDUCATION LIMITED ECONOMIC OPPORTUNITY AND AN ATTITUDE OF INDIFFERENCE IF NOT HOSTILITY TOWARD BLACKS FROM THE WHITE MAJORITY WHAT WHITE AMERICANS HAVE NEVER FULLY UNDERSTOOD BUT WHAT THE NEGRO CAN NEVER FORGET IS THAT WHITE SOCIETY IS DEEPLY IMPLICATED IN THE GHETTO WHITE INSTITUTIONS CREATED IT WHITE INSTITUTIONS MAINTAIN IT AND WHITE SOCIETY CONDONES IT IN THE QUARTER CENTURY SINCE THE APPEARANCE OF THIS LANDMARK DOCUMENT MUCH HAS CHANGED FEDERAL PROGRAMS OF EMPLOYMENT TRAINING EDUCATIONAL SUBSIDY HOUSING ASSISTANCE AND WELFARE REFORM HAVE BEEN ENACTED THE COURTS AND CONGRESS HAVE EXPANDED CIVIL RIGHTS PROTECTIONS EMPLOYMENT OPPORTUNITIES FOR BLACKS AS A WHOLE HAVE IMPROVED MARKEDLY AS HAVE INCOMES AND EDUCATIONAL ATTAINMENT BLACKS WIELD VASTLY MORE POLITICAL CLOUT TODAY AT ALL LEVELS OF GOVERNMENT THAN WAS THE CASE IN 1968 YET IT IS ARGUABLE THAT CONDITIONS IN SOME BIG CITY NEIGHBORHOODS ARE WORSE NOW THAN IN THE LATE 1960S THE HUMAN TRAGEDY THAT SO MOVED THE COMMISSION DRUGS GANGS VIOLENCE UNEMPLOYMENT FAILED SCHOOLS BROKEN FAMILIES TEEN PREGNANCIES DISEASE DESPAIR ALIENATION ARE STILL TO BE OBSERVED IN THE BLACK GHETTOS OF THE 1990S THE REALITY IS THAT THE CONDITIONS OF BLACK GHETTOS TODAY REVEAL AS MUCH ABOUT THE DISINTEGRATION OF URBAN BLACK SOCIETY AS THEY DO ABOUT THE INDIFFERENCE HOSTILITY OR RACISM OF WHITE SOCIETY INSTITUTIONAL BARRIERS TO BLACK PARTICIPATION IN AMERICAN LIFE STILL EXIST BUT THEY HAVE COME DOWN CONSIDERABLY AND EVERYBODY KNOWS IT EVERYBODY ALSO KNOWS THAT OTHER BARRIERS HAVE GROWN UP WITHIN THE URBAN BLACK MILIEU IN THESE LAST DECADES THAT ARE PROFOUNDLY DEBILITATING THE EFFECTS ARE MANIFEST IN PATTERNS OF BEHAVIOR INVOLVING CRIMINALITY UNWED CHILDBEARING LOW ACADEMIC ACHIEVEMENT DRUG USE AND GRATUITOUS VIOLENCE THESE BEHAVIORS WHICH DESTROY A PERSON'S ABILITY TO SEIZE EXISTING OPPORTUNITY MUST BE CHANGED IF PROGRESS IS TO COME HERE OUR SOCIAL SCIENTISTS AND OUR POLITICIANS HAVE FAILED US FOR THE LONGEST TIME IT WAS FORBIDDEN TO SPEAK OF THE UNRAVELING SOCIAL FABRIC OF GHETTO LIFE THIS HAS CHANGED IN THE PAST DECADE WITH THE DISCOVERY OF THE BLACK UNDERCLASS BUT THE FORMER CONSPIRACY OF SILENCE HAS NOT BEEN REPLACED WITH A MEANINGFUL DISCOURSE ON HOW THIS BROKEN WORLD WILL BE MENDED LIBERALS LIKE THE SOCIOLOGIST WILLIAM JULIUS WILSON HAVE NOW ACKNOWLEDGED THAT BEHAVIORAL PROBLEMS ARE FUNDAMENTAL BUT INSIST THAT THESE PROBLEMS DERIVE ULTIMATELY FROM A LACK OF ECONOMIC OPPORTUNITIES AND WILL ABATE ONCE GOOD JOBS AT GOOD WAGES ARE AT HAND CONSERVATIVES SUCH AS THE POLITICAL SCIENTIST CHARLES MURRAY SEE THE TRAGIC DEVELOPMENTS IN THE INNER CITIES AS THE UNINTENDED LEGACY OF A MISCONCEIVED WELFARE STATE IF THE GOVERNMENT WOULD STOP UNDERWRITING IRRESPONSIBLE BEHAVIOR THEY ARGUE POOR PEOPLE WOULD BE FORCED TO DISCOVER THE VIRTUES OF SELFRESTRAINT THESE POLAR POSITIONS HAVE SOMETHING IN COMMON THEY BOTH IMPLICITLY ASSUME THAT ECONOMIC FACTORS LIE BEHIND THE BEHAVIORAL PROBLEMS EVEN BEHAVIORS INVOLVING SEXUALITY MARRIAGE CHILDBEARING AND PARENTING BOTH POINTS OF VIEW SUGGEST THAT BEHAVIORAL PROBLEMS IN THE GHETTO CAN BE CURED FROM WITHOUT BY CHANGING GOVERNMENT POLICY BY GETTING THE INCENTIVES RIGHT BOTH SMACK OF A MECHANISTIC DETERMINISM WHEREIN THE MYSTERIES OF HUMAN MOTIVATION ARE SUSCEPTIBLE TO CALCULATED INTERVENTION BOTH HAVE DIFFICULTY EXPLAINING WHY SOME POOR MINORITY COMMUNITIES SHOW A MUCH LOWER INCIDENCE OF THESE BEHAVIORAL PROBLEMS THAN OTHERS AND ARE APPARENTLY LESS INFLUENCED BY THE SAME ECONOMIC FORCES ULTIMATELY SUCH STERILE DEBATES OVER POLICY FAIL TO ENGAGE THE FUNDAMENTAL QUESTIONS OF PERSONAL MORALITY OF CHARACTER AND VALUES WE DO NOT GIVE PUBLIC VOICE TO THE JUDGMENTS THAT IT IS WRONG TO ABUSE DRUGS TO BE SEXUALLY PROMISCUOUS TO BE INDOLENT AND WITHOUT DISCIPLINE TO BE DISRESPECTFUL OF LEGITIMATE AUTHORITY TO BE UNRELIABLE UNTRUTHFUL UNFAITHFUL THE ADVOCACY OF A CONCEPTION OF VIRTUOUS LIVING HAS VANISHED FROM AMERICAN PUBLIC DISCOURSE ESPECIALLY IN THE DISCUSSION OF RACE AND SOCIAL POLICY FOR EXAMPLE THE INSTITUTION OF MARRIAGE HAS VIRTUALLY DISAPPEARED FROM INNER CITY BLACK COMMUNITIES THE VAST MAJORITY OF POOR BLACK CHILDREN ARE RAISED BY A MOTHER ALONE BUT WHO WILL SAY THAT BLACK MEN AND WOMEN SHOULD GET TOGETHER AND STAY TOGETHER MORE THAN THEY NOW DO FOR THE SAKE OF THEIR CHILDREN WHO WILL SAY THAT YOUNG PEOPLE OF ANY RACE SHOULD ABSTAIN FROM SEXUAL INTIMACY UNTIL THEIR RELATIONSHIPS HAVE BEEN CONSECRATED BY MARRIAGE THESE ARE IN OUR SECULAR AGE NOT MATTERS FOR PUBLIC POLICY GOVERNMENT IT WOULD APPEAR MUST CONFINE ITSELF TO DEALING WITH THE CONSEQUENCES OF THESE MATTERS NOT HAVING BEEN TAKEN UP ELSEWHERE LUCKILY GOVERNMENT IS NOT THE ONLY SOURCE OF AUTHORITY IN EVERY COMMUNITY THERE ARE AGENCIES OF MORAL AND CULTURAL DEVELOPMENT THAT SEEK TO SHAPE THE WAYS IN WHICH INDIVIDUALS CONCEIVE OF THEIR DUTIES TO THEMSELVES THEIR OBLIGATIONS TO EACH OTHER AND THEIR RESPONSIBILITIES BEFORE GOD THE FAMILY AND THE CHURCH ARE PRIMARY AMONG THESE THESE INSTITUTIONS HAVE TOO OFTEN BROKEN DOWN IN THE INNER CITY THEY HAVE BEEN OVERWHELMED BY AN ARRAY OF FORCES FROM WITHIN AND WITHOUT YET THESE ARE THE NATURAL SOURCES OF LEGITIMATE MORAL TEACHING INDEED THE ONLY SOURCES IF THOSE INSTITUTIONS ARE NOT RESTORED THE BEHAVIORAL PROBLEMS OF THE GHETTO WILL NOT BE OVERCOME SUCH A RESTORATION OBVIOUSLY CANNOT BE THE OBJECT OF PROGRAMMATIC INTERVENTION BY PUBLIC AGENCIES RATHER IT MUST BE LED FROM WITHIN THE COMMUNITIES IN QUESTION BY THE MORAL AND POLITICAL LEADERS OF THOSE COMMUNITIES THE MENTION OF GOD MAY SEEM QUAINT BUT IT IS CLEAR THAT THE BEHAVIORAL PROBLEMS OF THE GHETTO AND NOT ONLY THERE INVOLVE SPIRITUAL ISSUES A MAN'S SPIRITUAL COMMITMENTS INFLUENCE HIS UNDERSTANDING OF HIS PARENTAL RESPONSIBILITIES NO ECONOMIST CAN DEVISE AN INCENTIVE SCHEME FOR ELICITING PARENTAL INVOLVEMENT IN A CHILD'S DEVELOPMENT THAT IS AS EFFECTIVE AS THE MOTIVATIONS OF CONSCIENCE DERIVING FROM THE PARENTS' UNDERSTANDING THAT THEY ARE GOD'S STEWARDS IN THE LIVES OF THEIR CHILDREN ONE CANNOT IMAGINE EFFECTIVELY TEACHING SEXUAL ABSTINENCE OR THE ESCHEWAL OF VIOLENCE WITHOUT AN APPEAL TO SPIRITUAL CONCEPTS THE MOST EFFECTIVE SUBSTANCEABUSE RECOVERY PROGRAMS ARE BUILT AROUND SPIRITUAL PRINCIPLES THE REPORTS OF SUCCESSFUL EFFORTS AT RECONSTRUCTION IN GHETTO COMMUNITIES INVARIABLY REVEAL A RELIGIOUS INSTITUTION OR A SET OF DEVOUT BELIEVERS AT THE CENTER OF THE EFFORT TO EVOKE THE ISSUE OF SPIRITUALITY IS NOT TO DENY THE RELEVANCE OF PUBLIC ACTION THERE ARE GREAT NEEDS AMONG THE INNER CITY POOR OF THE SORT IDENTIFIED IN THE KERNER COMMISSION'S REPORT TOWARD WHICH PUBLIC EFFORTS SHOULD BE DIRECTED BUT IF WE DO NOT WANT TO BE MARKING THE 50TH ANNIVERSARY OF THAT REPORT'S RELEASE WITH A REFLECTION ON THE WRETCHED CONDITION OF AMERICA'S GHETTOS THEN WE MUST BE WILLING TO CAUTIOUSLY AND SENSITIVELY EXPAND OUR DISCOURSE ABOUT THIS PROBLEM BEYOND A RECITATION OF THE CRIMES OF WHITE RACISM AND PUBLIC NEGLECT SOME OF THE WORK THAT NEEDS DOING INVOLVES GIVING SUPPORT TO THE DECENT AND VIRTUOUS PEOPLE IN THESE COMMUNITIES WHOSE LIVES ARE A TESTIMONY TO THE POWER OF FAITH MR LOURY IS A PROFESSOR OF ECONOMICS AT BOSTON UNIVERSITY SEE RELATED LETTERS LETTERS TO THE EDITOR SOCIAL ENGINEERING VS SPIRITUAL VALUES 9302250126 9303190170 930225 THE HASBEEN PUNDIT AND THE BRAND NEW PRESIDENT BY BRINK LINDSEY WHEN PRESIDENT CLINTON UNVEILED THIS WEEK HIS PLAN TO RESTORE THE NATION'S HIGHTECH COMPETITIVENESS THROUGH INCREASED FEDERAL SUBSIDIES HE NO DOUBT FAILED TO REALIZE THE EXQUISITENESS OF HIS TIMING IT WAS EXACTLY 25 YEARS AGO THAT JEANJACQUES SERVANSCHREIBER'S LE DEFI AMERICAIN THE AMERICAN CHALLENGE IN ITS ENGLISH TRANSLATION WAS CAUSING A SENSATION AS A RUNAWAY BESTSELLER ON BOTH SIDES OF THE ATLANTIC THE AUTHOR OF THIS ALLBUTFORGOTTEN BOOK CALLED FOR DOING TO EUROPE WHAT BILL CLINTON NOW WANTS TO DO TO THE US LOOKING BACK AT THAT BOOK'S GLARING ERRORS GIVES A DEPRESSING GLIMPSE OF WHAT MAY BE IN STORE FOR US MR SERVANSCHREIBER AT THE TIME THE EDITOR OF L'EXPRESS THE FRENCH WEEKLY WAS REACTING TO THE MASSIVE WAVE OF US CORPORATE INVESTMENT THAT POURED INTO WESTERN EUROPE DURING THE 1960S HE VIEWED THE AMERICAN PRESENCE WITH ALARM REFERRING TO IT AS AN ASSAULT ON EUROPE AND THIS CONQUERING FORCE IF WE ALLOW AMERICAN INVESTMENTS TO ENTER FREELY UNDER PRESENT CONDITIONS HE WARNED WE CONSIGN EUROPEAN INDUSTRY TO A SUBSIDIARY ROLE AND EUROPE HERSELF TO THE POSITION OF A SATELLITE ACCORDING TO MR SERVANSCHREIBER THE KEY TO AMERICAN ECONOMIC SUPERIORITY WAS THE SYSTEMATIC AND ORGANIZED ASSISTANCE THE US GOVERNMENT GIVES TO KEY INDUSTRIES BEHIND MOST OF THEIR RECENT INNOVATIONS IS A HUGE RESERVOIR OF FEDERAL FUNDS IN SUM A CLOSE ASSOCIATION BETWEEN BUSINESS UNIVERSITY AND THE GOVERNMENT IS THE BASIC SECRET OF THE AMERICAN SUCCESS STORY TO CLOSE THE SOCALLED TECHNOLOGICAL GAP MR SERVANSCHREIBER CALLED FOR A MASSIVE PROGRAM OF GOVERNMENT AID FOR THE CONSTRUCTION OF GIANT EUROPEAN INDUSTRIES TO COMPETE IN THE NEW STRATEGIC SECTORS OF THE POSTINDUSTRIAL ECONOMY OVER THE LONGER TERM INDUSTRIAL POLICY WOULD CONTINUALLY FINETUNE THE OUTPUT MIX OF EUROPEAN INDUSTRY DEVELOPMENTS IN FORECASTING WILL ALLOW US TO PREPARE FOR THE LONGRANGE CONVERSION OF CONDEMNED SECTORS OF THE ECONOMY TO CONCENTRATE OUR EFFORTS ON THOSE THAT HAVE A FUTURE AND TO ORIENT LABOR BOTH PRESENT AND FUTURE TOWARD USEFUL JOBS AND NOW FOR THE PUNCH LINE NO DOUBT USING ALL THOSE IMPRESSIVE NEW FORECASTING TOOLS MR SERVANSCHREIBER IDENTIFIED FOUR SECTORS AS THE KEY BATTLEGROUNDS IN THE INDUSTRIAL WAR BETWEEN EUROPE AND THE US AND THE WINNERS WERE DRUMROLL PLEASE ELECTRONICS SO FAR SO GOOD SUPERSONIC AVIATION ATOMIC ENERGY AND SPACE TRAVEL A QUARTERCENTURY LATER THE ROLES HAVE BEEN REVERSED BUT THE RHETORIC REMAINS THE SAME MR CLINTON NOW TELLS US THAT WE AS A NATION ARE FALLING BEHIND OUR EUROPEAN AND JAPANESE COMPETITORS THAT AFTER WINNING THE COLD WAR WE ARE LOSING THE PEACE THE LACK OF A NATIONAL ECONOMIC STRATEGY UNDER THE BUSH ADMINISTRATION AND THE SUPPOSED COMPETITIVE DISADVANTAGES WE HAVE SUFFERED WERE CONSTANT THEMES OF THE CLINTON CAMPAIGN LIKE MR SERVANSCHREIBER MR CLINTON BELIEVES THAT GOVERNMENT CAN PROMOTE ECONOMIC GROWTH THROUGH SECONDGUESSING THE INVESTMENT DECISIONS MADE IN THE PRIVATE MARKETPLACE THAT PREMISE SUPPLIES A MAJOR UNIFYING THEME TO THE GRAB BAG OF TECHNOPORK PROPOSALS THAT NOW GO UNDER THE HEADING OF INVESTMENT IT UNDERLIES SUCH SCHEMES AS SMART HIGHWAYS MAGNETIC LEVITATION TRAINS AND A SLEW OF SUBSIDIES FOR RESEARCH AND DEVELOPMENT IN CRITICAL TECHNOLOGIES THE PARALLELS BETWEEN THE HASBEEN PUNDIT AND THE BRAND NEW PRESIDENT ARE STRIKING BOTH HAVE IDENTIFIED THE PROSPECT OF FALLING BEHIND OTHER COUNTRIES AS A PRESSING ECONOMIC PROBLEM BOTH HAVE DIAGNOSED THE CAUSE OF THAT PROBLEM AS INSUFFICIENT CENTRAL PLANNING AND IN PARTICULAR INSUFFICIENT CORPORATIST COORDINATION AMONG GOVERNMENT BUSINESS LABOR AND EDUCATION FINALLY BOTH HAVE PRESCRIBED HEAVY DOSES OF GOVERNMENT SPENDING AND INDUSTRIAL POLICY AS THE CURE FOR WHAT AILS IT TURNS OUT THAT THERE'S LESS NEW IN THE NEW COVENANT THAN MEETS THE EYE UNFORTUNATELY FOR MR SERVANSCHREIBER WE ARE ABLE TO EVALUATE HIS ANALYSIS WITH THE BENEFIT OF A QUARTERCENTURY OF HINDSIGHT THE US ECONOMY WAS NOT TAKING OVER THE WORLD ON THE CONTRARY EUROPE AND JAPAN WERE EXPERIENCING MARKEDLY HIGHER GROWTH IN BOTH PRODUCTIVITY AND GROSS DOMESTIC PRODUCT THROUGHOUT THE 1960S WHAT APPEARED TO MR SERVANSCHREIBER AS A MENACING TECHNOLOGICAL GAP BETWEEN EUROPE AND THE US WAS SIMPLY A FASTCLOSING GAP CREATED BY THE DEVASTATION OF TWO WORLD WARS LIKEWISE MR SERVANSCHREIBER MISINTERPRETED AMERICA'S COLD WAR DEFENSE BURDEN AS SOME KIND OF MASTER PLAN FOR INDUSTRIAL DOMINATION JUST BECAUSE IT PRODUCED THE OCCASIONAL COMMERCIAL SPINOFF IN FACT THAT BURDEN WAS OVERALL A SIGNIFICANT DRAG ON US PRODUCTIVITY AND NO DOUBT CONTRIBUTED TO THE SUPERIOR PRODUCTIVITY PERFORMANCE OF OUR RELATIVELY UNBURDENED ALLIES FINALLY THE GOVERNMENTSUBSIDIZED NATIONAL CHAMPION COMPANIES AND HIGHTECH CONSORTIA THAT WERE SUPPOSED TO HELP EUROPE REGAIN TECHNOLOGICAL PARITY HAVE PROVED A BUST MR SERVANSCHREIBER'S INDUSTRIAL POLICY PRESCRIPTIONS HAVE BEEN TRIED IN EUROPE AND THEY HAVE FAILED IN COMPUTERS FOR EXAMPLE EUROPEAN COMPANIES HAVE NEVER MEASURED UP TO THEIR US AND JAPANESE COMPETITION DESPITE BILLIONS IN SUBSIDIES IT WASN'T SOME GOVERNMENTBACKED COLOSSUS THAT BEAT IBM AND OTHER ESTABLISHED LEADERS BUT ENTREPRENEURIAL UPSTARTS LIKE APPLE SUN AND DELL THE VIEW OF THE WORLD PROPOUNDED IN THE AMERICAN CHALLENGE IS EVEN MORE WRONGHEADED NOW THAN IT WAS 25 YEARS AGO TODAY'S QUICKSILVER TECHNOLOGY DIFFUSION MAKES A MOCKERY OF NATIONAL BOUNDARIES AND OF ATTEMPTS TO KEEP CRITICAL TECHNOLOGIES WITHIN THEM AND THE MANIFEST FAILURES OF BUREAUCRATIC PLANNING AT BOTH THE GOVERNMENT AND CORPORATE LEVELS RENDER ANY SCHEME OF TOPDOWN ECONOMIC COORDINATION A HOPELESS ABSURDITY REGRETTABLY THESE ARE LESSONS THAT BILL CLINTON OBLIVIOUS OF HISTORY APPEARS CONDEMNED TO REPEAT MR LINDSEY IS DIRECTOR OF REGULATORY STUDIES AT THE CATO INSTITUTE IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR CLINTON'S CLEAR VISION FOR HIGH TECHNOLOGIES WSJ MARCH 18 1993 9302250164 9303180147 930318 ALLIEDSIGNAL PLANS AIRBRAKE VENTURE WITH KNORRBREMSE AG OF GERMANY MORRIS TOWNSHIP NJ ALLIEDSIGNAL INC SAID IT SIGNED A MEMORANDUM OF UNDERSTANDING WITH A GERMAN MANUFACTURER TO COMBINE THEIR AIRBRAKE BUSINESSES INTO A JOINT VENTURE ALLIEDSIGNAL SAID THE PROPOSED VENTURE WITH KNORRBREMSE AG OF MUNICH WILL HAVE ANNUAL SALES OF 650 MILLION THE VENTURE WILL GIVE EACH COMPANY ACCESS TO NEW MARKETS WORLDWIDE AND LOWER RESEARCH AND DEVELOPMENT COSTS FOR TRUCK AIR BRAKES ALLIEDSIGNAL SAID THE COMPANIES DIDN'T DISCLOSE FINANCIAL TERMS BUT ALLIEDSIGNAL SAID THE NET EFFECT OF SWAPPING ASSETS BETWEEN THE TWO COMPANIES WILL BE A ONETIME GAIN IN EARNINGS A COMPANY SPOKESMAN SAID ALLIEDSIGNAL HASN'T DECIDED HOW IT WILL ACCOUNT FOR THE FINANCIAL GAIN THE TWO COMPANIES PLAN TO SIGN A FINAL AGREEMENT BY JUNE 30 THE MOVE IS IN LINE WITH ALLIEDSIGNAL'S COMPANYWIDE RESTRUCTURING PROGRAM THE MAKER OF AUTOMOTIVE AND AEROSPACE PRODUCTS AND ENGINEERED MATERIALS IS IN THE MIDST OF CONSOLIDATING AND SHEDDING BUSINESSES AND EXPANDING THOSE THAT ALREADY HAVE STRONG TECHNICAL AND MARKET PRESENCE ALLIEDSIGNAL SAID IT WILL OWN 65 OF THE NORTH AMERICAN OPERATIONS OF THE JOINT VENTURE WHILE KNORRBREMSE WILL OWN 65 OF THE EUROPEAN AND SOUTH AMERICAN OPERATIONS OF THE JOINT VENTURE THE TWO COMPANIES WILL BE EQUALLY REPRESENTED ON THE MANAGEMENT BOARD OF THE JOINT VENTURE ALLIEDSIGNAL SAID IT IS THE LARGEST SUPPLIER OF AIRBRAKES FOR MEDIUM AND HEAVY DUTY TRUCKS IN NORTH AMERICA WHERE KNORRBREMSE DOESN'T SELL DIRECTLY IN EUROPE THE GERMAN COMPANY HAS A LARGER SHARE OF THE MARKET THAN ALLIEDSIGNAL THE COMPANIES SAID THE JOINT VENTURE WON'T INCLUDE ALLIEDSIGNAL'S PASSENGERCAR AND LIGHT TRUCK HYDRAULIC BRAKE SYSTEMS OPERATIONS OR KNORRBREMSE'S RAILBRAKE BUSINESS 9303180146 930318 TECHNOLOGY & MEDICINE CANADA HOSPITALS PROVIDE CARE AS GOOD AS IN US AT LOWER COSTS STUDIES SHOW BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL TWO NEW STUDIES SUGGEST THAT CANADIAN HOSPITALS ARE PROVIDING CARE AT COSTS SIGNIFICANTLY LOWER THAN US HOSPITALS WITHOUT COMPROMISING PATIENTS' TREATMENT THE REPORTS PUBLISHED TODAY IN THE NEW ENGLAND JOURNAL OF MEDICINE ARE LIKELY TO FUEL THE DEBATE ABOUT WHETHER CANADA'S GOVERNMENTFINANCED HEALTH SYSTEM HOLDS ANY LESSONS FOR THE US ALTHOUGH US HEALTHCARE REFORMERS GENERALLY REGARD WHOLESALE ADOPTION OF THE CANADIAN MODEL TO BE IMPRACTICAL VARIOUS ASPECTS OF CANADA'S SYSTEM HAVE PERIODICALLY BEEN LOOKED AT WITH INTEREST IN ONE OF THE NEW STUDIES A CANADIAN PHYSICIAN AND A US MEDICAL ECONOMIST NOTED THAT IN 1987 THE US SPENT 1987 A PERSON ON HEALTH CARE THAT WAS 38 MORE THAN CANADA'S PER CAPITA OUTLAY THOUGH OVERALL US ECONOMIC OUTPUT WAS JUST 7 HIGHER ON A PER CAPITA BASIS ONLY PART OF THAT DISPARITY COULD BE EXPLAINED BY A MORE COMPLEX CASE MIX IN THE US OR BY HIGHER LABOR AND SUPPLY COSTS IN THE US ACCORDING TO DONALD REDELMEIER A PHYSICIAN AT TORONTO'S WELLESLEY HOSPITAL AND ECONOMIST VICTOR FUCHS OF STANFORD UNIVERSITY IN STANFORD CALIF FURTHERMORE THE RESEARCHERS SAID THEY FOUND LITTLE EVIDENCE THAT US HOSPITALS DELIVER MORE CLINICAL SERVICES PER PATIENT INSTEAD DRS REDELMEIER AND FUCHS CONCLUDED IT'S LIKELY THAT US HOSPITALS INCUR HIGHER OVERHEAD AND ARE LESS EFFICIENT USERS OF CLINICAL EQUIPMENT AND PERSONNEL THAT'S BECAUSE MORE OF CANADA'S CARE IS CENTRALIZED AT LARGE HEAVILY USED HOSPITALS IN CONTRAST US CARE IS SCATTERED AMONG MORE SMALL COMMUNITY HOSPITALS THAT OFTEN OPERATE FAR BELOW CAPACITY FOR EXAMPLE THE RESEARCHERS SAID THE LITHOTRIPSY MACHINE AT CANADA'S WELLESLEY HOSPITAL WHICH IS USED TO BREAK UP KIDNEY STONES IS USED NEARLY 50 TIMES A WEEK AT THE STANFORD UNIVERSITY MEDICAL CENTER THE AVERAGE USE OF A SIMILAR LITHOTRIPSY MACHINE IS LESS THAN ONETENTH AS MUCH CANADA'S HIGHER USAGE RATES ARE SOMETIMES ASSOCIATED WITH LONGER PATIENT WAITS FOR CERTAIN TYPES OF TREATMENT DRS REDELMEIER AND FUCHS ACKNOWLEDGED AS AN OFFSETTING FACTOR THOUGH THEY CONTENDED THAT THE QUALITY OF CARE IN AMERICAN HOSPITALS MAY SUFFER WHEN COMPLEX PROCEDURES ARE PERFORMED RELATIVELY INFREQUENTLY IN SMALLER HOSPITALS IN AN INTERVIEW DR REDELMEIER ESTIMATED THAT IF US HOSPITALS EXHIBITED THE SAME SPENDING PATTERNS AS CANADIAN HOSPITALS THE US COULD HAVE SAVED 40 BILLION LAST YEAR ON ITS 838 BILLION OF HEALTHCARE SPENDING THE BIGGEST AREAS OF POTENTIAL SAVINGS HE SAID ARE ADMINISTRATIVE COSTS HE ESTIMATED THAT OVERHEAD AT CANADIAN HOSPITALS IS ABOUT HALF THAT OF THEIR US COUNTERPARTS IN A SEPARATE STUDY OF 2231 HEART ATTACK PATIENTS IN THE US AND CANADA A USCANADIAN TEAM OF PHYSICIANS FOUND THAT CANADIAN HOSPITALS ARE STRICTER IN DECIDING WHICH PATIENTS TO ADMIT TO THE HOSPITAL FOR UNDIAGNOSED CHEST PAINS THAT MAY BE SYMPTOMATIC OF A HEART ATTACK THEY ALSO FOUND THAT CANADIAN HOSPITALS ARE LESS LIKELY TO USE CERTAIN EXPENSIVE DIAGNOSTIC AND TREATMENT MEASURES FOR SUSPECTED HEART ATTACK PATIENTS EVEN SO THE RESEARCHERS FOUND PATIENTS' MORTALITY RATES AND LIKELIHOOD OF A SECOND HEART ATTACK WERE VIRTUALLY IDENTICAL IN THE TWO COUNTRIES THE STUDY BY 20 DOCTORS IN THE US AND CANADA WAS LED BY JEAN ROULEAU AT THE SHERBROOKE UNIVERSITY IN QUEBEC CANADA'S MORE CONSERVATIVE TREATMENT DID CARRY A PRICE THE STUDY FOUND IN THE FORM OF A HIGHER INCIDENCE OF ACTIVITYLIMITING ANGINA CHEST PAIN DUE TO CLOGGED CORONARY ARTERIES SOME 29 OF CANADIAN PATIENTS SUFFERED FROM ANGINA WITHIN TWO YEARS OF THEIR HEART ATTACKS COMPARED WITH 23 OF US PATIENTS NONETHELESS THE RESEARCHERS WROTE IT APPEARS THAT THE THRESHOLD FOR THE ADMISSION OF PATIENTS WITH CHEST PAIN IN THE US CAN SAFELY BE RAISED LEADING TO A MORE COSTEFFECTIVE USE OF INTENSIVE CARE BEDS 9303180145 930318 WHO'S NEWS GLEACHER & CO GLEACHER & CO NEW YORK RICHARD A DERBES WAS NAMED A MANAGING DIRECTOR INCREASING THE NUMBER OF MANAGING DIRECTORS AT THIS INVESTMENT BANKING COMPANY TO EIGHT MR DERBES 46 YEARS OLD MOST RECENTLY WORKED AS A MANAGING DIRECTOR IN MORGAN STANLEY GROUP INC'S INVESTMENT BANKING DIVISION 9303180144 930318 WHO'S NEWS KYOTARU CO KYOTARU CO TOKYO THE RESTAURANT ASSOCIATES CORP UNIT OF THIS RESTAURANT COMPANY NAMED NICK VALENTI 45 YEARS OLD TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER HE HAD BEEN PRESIDENT OF THE RESTAURANT GROUP AND WILL CONTINUE TO BE RESPONSIBLE FOR EAST COAST OPERATIONS AND ASSUMES ADDED DUTIES IN CHARGE OF THE ACAPULCO MEXICAN RESTAURANT CHAIN ON THE WEST COAST RESTAURANT ASSOCIATES OPERATES 120 FULLSERVICE RESTAURANTS 9303180143 930318 WHO'S NEWS FABRICENTERS OF AMERICA INC FABRICENTERS OF AMERICA INC HUDSON OHIO ROBERT NORTON 46 YEARS OLD CURRENTLY EXECUTIVE VICE PRESIDENT CHIEF ADMINISTRATIVE OFFICER AND CHIEF FINANCIAL OFFICER OF THIS FABRIC AND CRAFT STORE CONCERN WAS NAMED TO THE NEWLY CREATED POST OF VICE CHAIRMAN OF THE BOARD MR NORTON WILL CONTINUE IN HIS CURRENT POSTS 9303180142 930318 WHO'S NEWS LINCOLN TELECOMMUNICATIONS INC LINCOLN TELECOMMUNICATIONS INC LINCOLN NEB FRANK H HILSABECK 48YEAROLD PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER AND THOMAS C WOODS 47 VICE CHAIRMAN WAS NAMED CHAIRMAN OF THIS TELECOMMUNICATIONS CONCERN THEY SUCCEED JAMES E GEIST 63 WHO IS RETIRING MAY 1 9303180141 930318 WHO'S NEWS ST JUDE MEDICAL INC ST JUDE MEDICAL INC ST PAUL MINN THIS COMPANY NAMED ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER LAWRENCE A LEHMKUHL AS CHAIRMAN MR LEHMKUHL 55 YEARS OLD SUCCEEDS WILLIAM G HENDRICKSON 73 WHO WAS NAMED TO THE NEW POST OF CHAIRMAN EMERITUS AS PRESIDENT AND CHIEF EXECUTIVE MR LEHMKUHL IS SUCCEEDED BY RONALD A MATRICARIA 50 WHO COMES TO THE MAKER OF HEART VALVES AND CARDIOVASCULAR DEVICES FROM ELI LILLY & CO WHERE HE MOST RECENTLY SERVED AS EXECUTIVE VICE PRESIDENT PHARMACEUTICAL DIVISION AND PRESIDENT NORTH AMERICAN OPERATIONS ALL CHANGES ARE EFFECTIVE APRIL 12 9303180140 930318 WHO'S NEWS KMART CORP KMART CORP TROY MICH CHARLES J MILLER 40 YEARS OLD FORMERLY DIRECTOR REAL ESTATE FOR THE SPECIALTY RETAIL DIVISION WAS NAMED GROUP VICE PRESIDENT REAL ESTATE FOR THE DIVISION MEANWHILE IN THE RETAILER'S US KMART STORE DIVISION EDWARD W WILHELM 34 GENERAL CONTROLLER WAS NAMED TO THE ADDITIONAL POST OF DIVISIONAL VICE PRESIDENT JAMES L MISPLON 42 FORMERLY DIRECTOR CORPORATE TAXES AND CONTROLLER WAS NAMED DIVISIONAL VICE PRESIDENT CORPORATE TAXES AND RICHARD BRUNNER 57 FORMERLY SENIOR DIRECTOR STORE PLANNING AND REFURBISHMENT WAS NAMED DIVISIONAL VICE PRESIDENT STORE PLANNING 9303180139 930318 WHO'S NEWS FOREST CITY ENTERPRISES INC FOREST CITY ENTERPRISES INC CLEVELAND BRIAN J RATNER 36YEAROLD PRESIDENT OF THE COMPANY'S TOWER CITY RETAIL INC UNIT WAS ELECTED TO THE BOARD OF THIS REAL ESTATE DEVELOPER AND MANAGER INCREASING THE NUMBER OF DIRECTORS TO 12 9303180138 930318 INTERNATIONAL BRIEF DAIMLERBENZ AG MERCEDES SAYS TALKS BEGIN ON REOPENING MANILA PLANT MERCEDESBENZ AG BEGAN TALKS TO REOPEN ITS LONGSHUTTERED CAR ASSEMBLY PLANT IN MANILA THE PHILIPPINES THE TALKS MARK THE LATEST STEP BY MERCEDES TO EXTEND PRODUCTION OUTSIDE OF GERMANY WHERE HIGH LABOR AND PRODUCTION COSTS HAVE HURT ITS COMPETITIVENESS MERCEDES A UNIT OF DAIMLERBENZ AG SHUT THE MANILA PLANT IN 1980 BECAUSE OF TROUBLESOME REGULATIONS IMPOSED BY THE PHILIPPINE GOVERNMENT THOSE REGULATIONS HAVE SINCE BEEN LIFTED THE CARS TO BE BUILT IN MANILA WILL BE PRODUCED FROM KITS IN WHICH MOST OF THE PARTS WILL BE MADE IN GERMANY WITH SOME PERCENTAGE OF LOCAL CONTENT BASED ON PHILIPPINE DECREES MERCEDES SAID THE MOVE WILL ALLOW MERCEDES TO TAKE ADVANTAGE OF LOW LABOR COSTS IN THE PHILIPPINES WHICH ARE LESS THAN ONETENTH OF THE GERMAN LEVEL ACCORDING TO THE GERMAN NEWS MAGAZINE WIRTSCHAFTSWOCHE THE SPOKESMAN DISPUTED THE MAGAZINE'S REPORT THAT MERCEDES WOULD BUILD ITS NEWLY REDESIGNED CSERIES SPORTS ROADSTERS IN MANILA THOSE WILL BE BUILT IN GERMANY HE SAID ADDING WE WILL LIKELY BUILD MIDDLESIZED CARS IN MANILA 9303180137 930318 REVIEW & OUTLOOK EDITORIAL TRAFFIC UNJAMMED THE CONCEPT OF CONGESTION PRICING FOR THE NATION'S HIGHWAYS IS ABOUT TO BE TURNED INTO ASPHALT IF ONLY WITH COMPACT STEPS ABOUT 16 APPLICATIONS ARRIVED FROM LOCALITIES AROUND THE COUNTRY THAT WANT TO QUALIFY FOR UP TO FIVE PRICING DEMONSTRATION PROJECTS TO BE AUTHORIZED UNDER THE LATEST BIG FEDERAL TRANSPORTATION LAW FOR A CHANGE THESE PROJECTS PROMISE MORE THAN PORK PERHAPS THE MOST EXCITING PROPOSAL COMES FROM ARIZONA'S DEPARTMENT OF TRANSPORTATION WHERE JOHN SEMMENS HAS BEEN THINKING AND WRITING ABOUT PRIVATIZATION PROSPECTS FOR MORE THAN A DECADE ARIZONA'S IDEA IS TO TRY A CARROT APPROACH INSTEAD OF TAKING AWAY FREE ROAD SPACE AND THUS ENGENDERING POLITICAL OPPOSITION IT SEEKS TO ADD AN OPTION FOR BUSY MOTORISTS IT WOULD OFFER THOSE DRIVING ALONE THE CHANCE TO PAY A TOLL TO DRIVE IN HIGH OCCUPANCY VEHICLE LANES ALONG INTERSTATE 10 THAT NORMALLY ARE OPEN ONLY TO BUSES VANS AND CAR POOLS BECAUSE THOSE LANES ARE USUALLY UNDERUSED THE ADDITION OF MORE TRAFFIC IN THEM WOULDN'T BE A PROBLEM THE TOLL WOULD BE HIGH ENOUGH AT ANY GIVEN TIME OF DAY TO MAKE SURE THAT THE HOV LANES THEMSELVES DON'T GET CONGESTED MANAGEMENT OF THE TOLL LANES INCLUDING THEIR MAINTENANCE WOULD BE TURNED OVER TO A PRIVATE CONCERN IT WOULD BE RESPONSIBLE FOR COLLECTING AND MONITORING TOLLS THROUGH THE USE OF TAGS AND ELECTRONIC SENSORS THE STATE OBVIOUSLY WOULD HELP WITH ENFORCEMENT AS ENOUGH MONEY IS COLLECTED TOLL/HOV LANES COULD BE ADDED TO OTHER ARIZONA ROUTES THE PROSPECT OF GAIN WITHOUT ADDED PAIN SUCCEEDED IN WINNING THE BLESSING OF BOTH THE STATE AND MARICOPA COUNTY PHOENIX OFFICIALS THIS IS THE START OF A SOLUTION TO TRAFFIC TIEUPS THAT HERETOFORE HAVE LED TO GROSSLY EXPENSIVE AND INEFFICIENT RAILTRANSIT SCHEMES A GREEN LIGHT FOR THE FIRST OF UP TO FIVE SELECTED PROPOSALS IS EXPECTED FROM WASHINGTON BY THE END OF THIS MONTH 9303180136 930318 OTC FOCUS COMPUTER AND MEDICAL SHARES LEAD BROAD DROP IN OVERTHECOUNTER ISSUES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COMPUTER AND MEDICALRELATED STOCKS LED A BROAD SELLOFF IN THE NASDAQ MARKET AS A DIMMED PROFIT OUTLOOK WHACKED 38 FROM THE SHARE PRICE OF NETWORTH A COMPUTER NETWORKING FIRM THE NASDAQ COMPOSITE INDEX TUMBLED 807 OR 116 TO 68740 DECLINERS OUTNUMBERED ADVANCERS 1445 TO 1180 ON VOLUME OF 2451 MILLION SHARES UP FROM TUESDAY'S 2293 MILLION THERE'S DISARRAY IN TECHNOLOGY STOCKS SAID JERRY NEWMAN AN INSTITUTIONAL TRADER AT COWEN & CO THE NETWORKING GROUP IS UNDER PRESSURE AND SO ARE THE SEMICONDUCTOR DISK DRIVE AND SOFTWARE STOCKS ONE OF LAST YEAR'S HOTTEST INITIAL PUBLIC OFFERINGS NETWORTH TOPPLED 12 TO END THE DAY AT 20 THE COMPANY SAID A COMPUTER CHIP SHORTAGE WILL SIGNIFICANTLY REDUCE EXPECTED EARNINGS FOR ITS THIRD QUARTER ENDING THIS MONTH THE IRVING TEXAS COMPANY SAID EARNINGS WILL BE AROUND THE BREAKEVEN LEVEL ANALYSTS HAD EXPECTED EARNINGS OF 20 CENTS A SHARE LAST YEAR NETWORTH EARNED SIX CENTS A SHARE IN THE QUARTER LESS THAN FOUR MONTHS AGO NETWORTH DOUBLED IN PRICE TO 32 ON ITS FIRST TRADING DAY YESTERDAY THE COMPANY'S COUNDERWRITER COWEN & CO LOWERED ITS NEARTERM RATING ON NETWORTH STOCK TO HOLD FROM BUY THIS IS A DIFFICULT THING TO PREDICT THE COMPANY SAID IT WON'T BE SHIPPING AS MANY NEW PRODUCTS AND THOSE PRODUCTS WERE THE HIGHER REVENUE PRODUCERS SO THERE WAS A BIG EXPLOSION IN THE STOCK SAID JIM KEDERSHA A COWEN & CO ANALYST IT DOESN'T MEAN THAT THE FUTURE DOESN'T LOOK GOOD THERE IS GOOD INTEREST IN THE PRODUCTS MR KEDERSHA LOWERED HIS NETWORTH EARNINGS ESTIMATE FOR THE YEAR ENDING IN JUNE TO 50 CENTS A SHARE FROM 75 CENTS AND FOR 1994 TO A RANGE OF 110 TO 120 A SHARE FROM 130 ROBERTSON STEPHENS THE LEADMANAGER OF NETWORTH'S IPO MADE SIMILAR CUTS NETWORTH'S PRO FORMA EARNINGS FOR 1992 WERE 37 CENTS A SHARE MARK FLOYD NETWORTH'S CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER SAID BY NEXT MONTH THE SUPPLY PROBLEM SHOULD BE OVER THE CHIP IS FOR A NEW MODULE THAT PLUGS INTO A NETWORTH DEVICE THAT CENTRALIZES THE WIRING AND MANAGEMENT OF COMPUTER NETWORKS OTHER NETWORKING STOCKS ALSO TUMBLED SYNOPTICS DROPPED 3 1/8 TO 88 CISCO SYSTEMS FELL 2 3/4 TO 92 1/4 AND WELLFLEET COMMUNICATIONS SLID 1 5/8 TO 42 3/4 INTEL TOPPLED 5 TO 114 3/4 MICROSOFT STUMBLED 2 3/8 TO 85 3/8 AND SEAGATE TECHNOLOGY SLIPPED 3/4 TO 16 ANALYSTS SAID HEALTHCARE AND BIOTECHNOLOGY STOCKS FELL AFTER THE WASHINGTON POST REPORTED THAT WHITE HOUSE ADVISER IRA MAGAZINER HAS TOLD INDUSTRY GROUPS THAT SHORTTERM PRICE CONTROLS WILL BE NEEDED TO CURB HEALTHCARE SPENDING CHIRON DROPPED 3 TO 50 3/4 GENZYME SLIPPED 2 TO 33 1/2 BIOGEN FELL 1 TO 29 1/2 AND US HEALTHCARE SKIDDED 2 1/4 TO 43 3/4 INTERWEST SAVINGS BANK ADDED 1 1/2 TO 15 3/4 IT DECLARED A 15 STOCK DIVIDEND AND AN INCREASED CASH DIVIDEND OF 55 CENTS UP FROM 5 CENTS LAST QUARTER THE COMBINED EFFECT OF THE DIVIDENDS MEANS THE CASH PAYOUTS MADE TO THE OAK HARBOR WASH COMPANY'S SHAREHOLDERS WILL BE 27 HIGHER THIS QUARTER THAN LAST PAYCHEX LOST 2 TO 40 EVEN THOUGH IT POSTED SLIGHTLY HIGHERTHANEXPECTED EARNINGS OF 22 CENTS A SHARE FOR THE THIRD QUARTER ENDED LAST MONTH THE MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM WAS 21 CENTS A SHARE THE ROCHESTER NY PAYROLL ACCOUNTING SERVICES COMPANY HAD A PROFIT OF 15 CENTS A SHARE A YEAR EARLIER DESPITE THE STRONG REPORT ALEX BROWN & SONS ANALYST CATO D CARPENTER REDUCED HIS INVESTMENT RATING ON PAYCHEX TO BUY FROM STRONG BUY LINDBERG FELL 1 TO 4 1/2 THE ROSEMONT ILL COMPANY DISCLOSED PLANS TO TAKE A 5 MILLION RESTRUCTURING CHARGE IN THE FIRST QUARTER IT EARNED 362000 IN THE SAME PERIOD LAST YEAR BUT THE COMPANY EXPECTS TO RECORD A 15 MILLION GAIN IN THE LATEST PERIOD FROM AN ACCOUNTING CHANGE DEKALB GENETICS ROSE 1 3/8 TO 31 1/2 IT SAID IT PLANS TO PREPAY 30 MILLION IN DEBT OWED TO PFIZER INC THE MOVE WILL CUT DEKALB'S INTEREST EXPENSES AND ELIMINATE THE POSSIBILITY IT WOULD HAVE TO ISSUE ADDITIONAL SHARES THE DEBT WAS CONVERTIBLE INTO STOCK DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9303180135 930318 INTERNATIONAL ITALIAN AVERAGE WAGES GAIN 13 ROME AVERAGE HOURLY WAGES IN ITALY ROSE 13 IN JANUARY FROM DECEMBER AND WERE UP 28 FROM A YEAR EARLIER SAID ISTAT THE STATE STATISTICS BUREAU THE JANUARY INCREASE COMPARED WITH A 02 MONTHLY INCREASE IN DECEMBER WHEN THE ANNUAL RISE WAS 22 9303180134 930318 THE FALSE PROMISE OF DEFENSE CONVERSION BY JERROLD T LUNDQUIST PROMPTED BY THE ANNOUNCEMENT OF BASE CLOSINGS LAST WEEK PRESIDENT CLINTON OUTLINED A BOLD VISION FOR THE WORKERS AT WESTINGHOUSE ELECTRONIC SYSTEMS RATHER THAN SIMPLY MAKING THEM FACE CUTS IN DEMAND FOR THE DEFENSE PRODUCTS THEY HAVE TRADITIONALLY PRODUCED THE GOVERNMENT WOULD BEGIN TO ACT AS A PARTNER IN HELPING SPEED THEIR TRANSITION TO COMMERCIAL MARKETS MR CLINTON'S OFFER IS PART OF A BROADER PLAN THAT INCLUDES 17 BILLION IN FUNDING FOR WORKER RETRAINING ENVIRONMENTAL CLEANUP AND COMMUNITY ASSISTANCE APPROXIMATELY A THIRD OF THAT IS EARMARKED FOR DIRECT SUPPORT OF COMMERCIALLY VIABLE TECHNOLOGIES MANY OF WHICH ARE TARGETED AT SPECIFIC INDUSTRIES SUCH AS HEALTH CARE ENVIRONMENTAL MANAGEMENT AND SHIPBUILDING CONGRESS IS CURRENTLY DEBATING THE DETAILS OF A PACKAGE THAT COULD REACH 20 BILLION OVER THE NEXT FIVE YEARS CLEARLY THE WHITE HOUSE INTENDS TO MAKE DEFENSE CONVERSION A CORNERSTONE OF ITS BROADER TECHNOLOGY POLICY IT'S NOT HARD TO SEE WHY DEFENSE CONVERSION SEEMS TO PROMISE A WAY TO AVOID LAYOFFS PLANT CLOSINGS AND BUSINESS FAILURES THERE ARE ROUGHLY 9000 PRIMARY SUPPLIERS OF DEFENSE PRODUCTS IN MORE THAN 200 INDUSTRY SEGMENTS TOGETHER THEY CONSTITUTE APPROXIMATELY 3 OF THE GROSS NATIONAL PRODUCT FURTHER THE TECHNOLOGY BASE OF THESE COMPANIES IS VERY SOPHISTICATED HELPING THEM CONVERT THEIR RESOURCES TO NEW ENDEAVORS AND HELPING THE ECONOMY SEEMS LIKE A WINWIN PROPOSITION UNFORTUNATELY THE FACTS SAY OTHERWISE FIRST THE COMING DEFENSE CUTS AND THEIR EFFECT ON PROCUREMENT AND RESEARCH AND DEVELOPMENT DWARF THE SIZE OF CONVERSION MARKETS OVER THE NEXT FIVE YEARS THE LOSS FROM PROCUREMENT AND R&D IS LIKELY TO APPROACH 50 BILLION ANNUALLY THIS IS ROUGHLY EQUIVALENT TO THE COMBINED DEFENSE REVENUES OF NORTHROP MCDONNELL DOUGLAS GENERAL DYNAMICS LOCKHEED GRUMMAN LORAL HUGHES RAYTHEON AND UNITED TECHNOLOGIES AS IN PREVIOUS DOWNTURNS THE CUTS WILL RIPPLE BACK THROUGH THE PROCUREMENT CHAIN TO THE SMALLEST SUPPLIERS AND PRODUCERS AS LARGE PROGRAMS ARE CURTAILED OR DELAYED THE MARKETS FOR TYPICAL CONVERSION PRODUCTS LIKE WINDSHEAR DETECTORS AND NIGHTVISION EQUIPMENT ARE MINUSCULE COMPARED WITH THE PENTAGON'S FORMER DEFENSE NEEDS OTHER MARKETS FOR HEADSUP WINDSHIELDPROJECTED AUTOMOBILE DISPLAYS FOR EXAMPLE ARE EMBRYONIC IN MOST CASES THE DEFENSEBASED TECHNOLOGY IS NOT NEW TO THE APPLICATION AND ESTABLISHED COMPETITORS ALREADY EXIST THIS IS CERTAINLY TRUE IN THE MOST POPULAR AREAS SUCH AS DATA SERVICES ENVIRONMENTAL MANAGEMENT AND DISPOSAL AND ELECTRONIC CONTROLS SECOND DEFENSEORIENTED COMPANIES HAVE AN ABYSMAL RECORD OF CONVERSION THERE HAVE BEEN SEVERAL WAVES OF ATTEMPTS TO ENTER OTHER MARKETS IN THE 1960S AVCO NOW PART OF TEXTRON ENTERED SUCH UNFAMILIAR TERRITORY AS FILMMAKING MOTORHOME BUILDING AND VCR PRODUCTION ALL OF WHICH PROVED UNPROFITABLE IN THE 1970S GRUMMAN AND BOEING BOTH TRIED TO SERVE URBANTRANSPORTATION MARKETS WITH BUSES AND ELECTRIC TRAINS THE RESULTS WERE DISASTROUS GRUMMAN AND BOEING WERE NOT ALONE NORTHROP FAILED AT POLLUTION CONTROLS NUCLEARPLANT EQUIPMENT MEDICAL AND BUSINESS DATA SERVICES AND AIRPORT DEVELOPMENT MCDONNELL DOUGLAS ATTEMPTED UNSUCCESSFULLY TO ENTER MICROELECTRONIC CONTROLS MEDICAL SYSTEMS REAL ESTATE AND COAL CONVERSION MARTIN MARIETTA TRIED ENERGY AND ENVIRONMENTAL SERVICES RAYTHEON ENTERED AND EXITED THE DATATERMINALS BUSINESS TRW AND GENERAL DYNAMICS FOUND THE COMPETITIVE INTENSITY OF TELECOMMUNICATIONS DAUNTING THERE WERE SIMPLE REASONS WHY THESE CAPABLE COMPANIES DID NOT SUCCEED EITHER THEY DID NOT KNOW THE BUSINESS OR MARKET THEY WERE ENTERING OR THEIR ADVANTAGE IN SKILL TECHNOLOGY OR PRODUCT WAS NOT SUFFICIENT TO BRING ABOUT SUCCESS DEFENSE COMPANIES HAVE HONED THEIR SKILLS AND CAPACITY TO SELL TO THE EXACTING PRODUCT SPECIFICATIONS OF THE GOVERNMENT CUSTOMER TO WIN NOT JUST PLAY IN COMMERCIAL APPLICATIONS OF A SKILL OR TECHNOLOGY REQUIRES AN ENTIRELY DIFFERENT SET OF MARKETING AND PRODUCT DEVELOPMENT SKILLS IT ALSO REQUIRES THE ABILITY TO MOVE TO LOW UNIT PRODUCTION COSTS IN A MARKET THAT MAY BE MORE VOLATILE AND LESS DISCERNIBLE THAN THAT DRIVEN FROM DEFENSE BUDGETS AND CONGRESSIONAL AUTHORIZATIONS PERHAPS THE MOST INSTRUCTIVE EFFORT AT CONVERSION WAS ROCKWELL'S ABORTIVE ATTEMPT TO PRODUCE ELECTRONIC CALCULATORS AND DIGITAL WATCHES FOR THE CONSUMERELECTRONICS MARKET USING THEN STATEOFTHEART MICROELECTRONIC CIRCUITRY SPAWNED BY THE SPACE PROGRAM ROCKWELL PRODUCED EXCELLENT PRODUCTS THAT WERE ALAS OVERENGINEERED AND TOO COSTLY FOR THE CONSUMER MARKETPLACE THE KEY TURNED OUT TO BE NOT ELECTRONIC MINIATURIZATION WHICH WAS READILY COPYABLE BUT ACCESS TO DISTRIBUTION CHANNELS AND FASHION SAVVY SUCH CONVERSION PROBLEMS ARE TYPICAL ALTHOUGH THERE ARE COMPANIES THAT SERVE BOTH THE DEFENSE AND COMMERCIAL MARKETS ESPECIALLY IN COMMERCIAL AEROSPACE USUALLY THE SUCCESSFUL ONES DIVIDE THEIR OPERATIONS DESIGN PROCUREMENT MANUFACTURING SERVICE MARKETING AND SALES TO AVOID MIXING THE TWO BUSINESSES EVEN IF THE PRODUCTS ARE RELATED LITTLE WONDER THEN THAT MANY DEFENSE CONTRACTORS ARE WARY OF UNRELATED DIVERSIFICATION AS MARTIN MARIETTA'S CHIEF EXECUTIVE NORM AUGUSTINE LIKES TO SAY THE INDUSTRY'S RECORD IS UNBLEMISHED BY SUCCESS DOES THIS MEAN THE SITUATION IS HOPELESS AND THE GOVERNMENT SHOULD NOT ACT NOT NECESSARILY THE TYPE OF AID THAT EASES THE EFFECTS OF LAYOFFS PLANT CLOSINGS AND BASE CLOSINGS IS AKIN TO DISASTER RELIEF AND CONGRESS AND STATE AUTHORITIES ARE IN A GOOD POSITION TO WEIGH ITS VALUE AND NEED JOB TRAINING AND RELOCATION ASSISTANCE MAY ALSO MAKE SENSE BUT GOVERNMENT FUNDS USED TO BACK CONVERSION VENTURES MUST BE BASED ON A SOBER ASSESSMENT OF THE MEAGER CHANCES FOR SUCCESS THE FOLLOWING CONCLUSIONS SHOULD BE HEEDED WHEN DEFENSE CONTRACTORS HAVE SUCCESSFULLY DIVERSIFIED RARELY HAS THE SOURCE OF COMPETITIVE ADVANTAGE RESTED ON TECHNOLOGY TRANSFERRED FROM THE MILITARY SIDE OF THE BUSINESS JOINT VENTURES LICENSING OR OUTRIGHT SALE HAVE PROVIDED THE HIGHEST RETURN TO THE SHAREHOLDERS IN THOSE FEW CASES WHEN A GOVERNMENTCONTRACTED TECHNOLOGY OR PRODUCT HAS BEEN BROUGHT TO THE COMMERCIAL MARKET SUCCESSFULLY AN EXAMPLE OF THIS WAS LOCKHEED'S SALE OF THE DIALOG DATABASE SERVICE TO KNIGHT RIDDER IN 1988 LOCKHEED AEROSPACE HAD DEVELOPED DIALOG FROM ITS WORK FOR NASA ALTHOUGH DIALOG SET THE INDUSTRY STANDARD LOCKHEED DID NOT MARKET THE SERVICE AGGRESSIVELY AND FAILED TO CONCENTRATE ON THE LUCRATIVE BUSINESSDATA MARKET IT WAS MORE PROFITABLE TO SELL SUCCESSFUL CONVERSION OF PHYSICAL CAPACITY ESPECIALLY FIXTURES AND TOOLING IS EXTREMELY DIFFICULT CONVERSION WHEN SUCCESSFUL HAS TAKEN DECADES THE MORE UNFAMILIAR THE PRODUCT OR MARKET THE HIGHER THE LIKELIHOOD OF FAILURE THE SIMPLE FACT IS THAT MOST DEFENSE PRODUCTS DO NOT HAVE COMMERCIAL ANALOGS AS A RESULT DEFENSE CONTRACTORS ARE MORE LIKELY TO MAINTAIN THEIR SCALE BY SEEKING OUT NEW INTERNATIONAL MILITARY MARKETS AND AIMING AT GROWING PORTIONS OF THE DEFENSE BUDGET BUT THIS IS LIKE ALL THE FROGS IN THE POND JUMPING FOR THE SAME LILY PAD THEY'LL SINK THE REAL TASK FOR THE COMPANIES IN THE DEFENSE INDUSTRY IS TO GET ON WITH THE DIFFICULT AND PAINFUL PROCESS OF RESTRUCTURING WHICH IS MORE THAN JUST LAYING OFF EMPLOYEES RESTRUCTURING INCLUDES SELLING BUSINESSES TO NATURAL OWNERS SUCH AS GENERAL ELECTRIC SELLING ITS AEROSPACE DIVISION TO MARTIN MARIETTA IT INCLUDES MERGING COMPANIES IN AREAS OF DECLINING DEMAND SUCH AS FMC AND HARSCO WHICH HAVE MERGED TO MAKE MILITARY VEHICLES AND IT INCLUDES CONCENTRATING IN CERTAIN BUSINESS SEGMENTS IN ORDER TO BECOME A PREMIER COMPETITOR AN EXAMPLE HERE WOULD BE HUGHES PURCHASING GENERAL DYNAMICS' MISSILE DIVISION IN THE END THE TASK IS NOT CONVERTING THE DEFENSE INDUSTRY FROM MILITARY TO COMMERCIAL MARKETS BUT CHANGING THE INDUSTRY FROM ONE MADE UP OF DIVERSIFIED DEFENSE CONTRACTORS IN TOO MANY DECLINING SEGMENTS TO ONE MADE UP OF HIGHLY FOCUSED COMPANIES IN SUSTAINABLE SEGMENTS ONLY THEN CAN DEFENSERELATED INDUSTRIES MAINTAIN THE QUALITY OF THE DEFENSE INDUSTRIAL BASE WHILE PROVIDING FOR THEIR STAKEHOLDERS THE DANGER OF MR CLINTON'S BOLD VISION OF CONVERSION IS THAT WE MIGHT COME TO BELIEVE THAT THE INDUSTRY CAN AVOID THE RECORD OF THE PAST SIMPLY THROUGH GOVERNMENT ASSISTANCE OR WORSE THAT THE REAL AND PAINFUL STEPS OF SHRINKING AND RESTRUCTURING ARE NOT NECESSARY MR LUNDQUIST IS A PARTNER IN THE STAMFORD CONN OFFICE OF MCKINSEY & CO 9303180133 930318 TECHNOLOGY & MEDICINE GLAXO INTRODUCTION SET FOR MARCH 29 FOR MIGRAINE DRUG BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL GLAXO HOLDINGS PLC'S MUCHTOUTED DRUG FOR RELIEVING MIGRAINE HEADACHES WILL BE MARKETED IN THE US BEGINNING MARCH 29 THE BRITISHOWNED DRUG MAKER WILL ANNOUNCE TODAY THE DRUG AN INJECTABLE FORM OF SUMATRIPTAN SUCCINATE WILL BE SOLD UNDER THE BRAND NAME IMITREX GLAXO HAS SCHEDULED A NEWS CONFERENCE IN NEW YORK FOR THIS MORNING IN DISCLOSING THE MOST CONTROVERSIAL ASPECT OF IMITREX GLAXO SAID IT WILL CHARGE PHARMACIES 2690 PER DOSE WITH A TYPICAL RETAIL MARKUP OF ABOUT 30 THE CASHPAYING CUSTOMER WOULD PAY ABOUT 35 FOR EACH DOSE THE DRUG'S HIGH PRICE COMPARED WITH OTHER MIGRAINE DRUGS HAS BEEN CONTROVERSIAL IN SOME COUNTRIES WHERE IT IS CURRENTLY AVAILABLE AND IS LIKELY TO BE A CONCERN TO SOME PHYSICIANS AND THIRDPARTY PAYERS IN THE US ANALYSTS SAID CLINICAL STUDIES INDICATE THAT AN INJECTION OF IMITREX RELIEVED PAIN IN 70 OF MIGRAINE SUFFERERS WITHIN AN HOUR ABOUT 83 OF THE PATIENTS REPORTED SIDE EFFECTS SUCH AS CHEST JAW OR NECK TIGHTNESS AND DIZZINESS THE DRUG SHOULDN'T BE USED BY PEOPLE WITH UNCONTROLLED HIGH BLOOD PRESSURE OR HEART DISEASE THE NEW DRUG HAS THE POTENTIAL OF GARNERING HUGE SALES GIVEN THAT THERE ARE MORE THAN 11 MILLION MIGRAINE SUFFERERS IN THE US ANALYSTS SAID BUT SALES OF THE DRUG IN EUROPE AND CANADA HAVE BEEN UNEXPECTEDLY SLOW THROUGH THE END OF THE COMPANY'S FISCAL YEAR IN JUNE SALES OF THE DRUG IN BOTH THE INJECTABLE AND ORAL FORMS TOTALED 76 MILLION IN THE FIRST SIX MONTHS OF FISCAL 1993 THE DRUG'S SALES PICKED UP TO 61 MILLION THE ORAL FORM HASN'T YET BEEN APPROVED FOR SALE IN THE US IN OTHER COUNTRIES IT SELLS FOR ABOUT HALF THE PRICE OF THE INJECTABLE CURRENTLY MIGRAINE SUFFERERS TAKE ASPIRIN CODEINE OR ERGOTAMINE FOR RELIEF SANDOZ PHARMACEUTICALS CORP'S ERGOTAMINE DHE45 HAS A WHOLESALE COST OF 932 FOR EACH INJECTION AND RELIEVES PAIN IN ABOUT 70 OF PATIENTS WITHIN AN HOUR SIMILAR TO IMITREX'S RESULTS ACCORDING TO A SANDOZ SPOKESWOMAN THE COMPANY IS AWAITING MARKETING APPROVAL OF A NASAL SPRAY FORM OF DHE STEPHEN PEROUTKA A RESEARCHER AT THE PALO ALTO INSTITUTE FOR MOLECULAR MEDICINE SAID HE HAS STUDIED BOTH DRUGS AND CONSIDERS IMITREX AN ADVANCE AT THE PHARMACOLOGICAL LEVEL MY CONCERN IS IS IT WORTH THE PRICE HE SAID IF THE DRUG WERE WIDELY USED BY MIGRAINE SUFFERERS ITS SALES WOULD BE SEVERAL BILLION DOLLARS ANNUALLY SAID HEMANT SHAH AN INDEPENDENT ANALYST BUT BASED ON THE EXPERIENCE IN EUROPE HE EXPECTS IMITREX SALES TO REACH JUST 500 MILLION IN FIVE YEARS BUT ARVIND DESAI AN ANALYST AT MEHTA & ISALY SAID SALES WILL ACCELERATE AFTER GLAXO RECEIVES FOOD AND DRUG ADMINISTRATION APPROVAL OF IMITREX IN ORAL FORM EXPECTED THIS YEAR OR EARLY NEXT YEAR MEANWHILE GLAXO WILL USE THE INJECTABLE FORM TO BUILD AWARENESS OF THE DRUG AMONG SPECIALISTS AND PATIENTS HE SAID HE ESTIMATED THAT IN FIVE YEARS SALES OF THE DRUG WILL REACH 12 BILLION A YEAR WORLDWIDE ABOUT 40 OF WHICH WILL BE IN THE US 9303180132 930318 INTERNATIONAL MUSLIMS IN MALAYSIA SEE PLOT AGAINST ISLAM IN NEW YORK BOMBING KUALA LUMPUR MALAYSIA MOHAMED ANUAR TAHIR SEES A PLOT IN THE BOMBING OF NEW YORK'S WORLD TRADE CENTER A PLOT TO DESTROY ISLAM STOMPING ON THE FEDERAL BUREAU OF INVESTIGATION'S THEORY THAT MOHAMMED A SALAMEH WAS BEHIND THE FEB 26 BLAST MR TAHIR SAYS HE BELIEVES THE 25YEAROLD MAN WAS SET UP BY WESTERN AUTHORITIES WHO FEAR ISLAM MR TAHIR THE SECRETARY OF THE MALAYSIAN ACTION FRONT IS ESTABLISHING A SPECIAL FUND TO HELP PAY FOR THE LEGAL DEFENSE OF MR SALAMEH WHO WAS ARRESTED AFTER TRYING TO CLAIM A 400 DEPOSIT ON A RENTAL TRUCK THE FBI THINKS WAS USED IN THE ATTACK THE FRONT IS SUPPORTED BY 32 ORGANIZATIONS INCLUDING SOME CHRISTIAN GROUPS IN THIS LARGELY ISLAMIC COUNTRY OF 186 MILLION SOMEONE MUST BE A VOICE ON BEHALF OF THESE PEOPLE SAYS MR TAHIR WHO ALSO HEADS MALAYSIA'S ISLAMIC YOUTH MOVEMENT PEOPLE SEE ALL MUSLIMS AS BAD AS SADDAM HUSSEIN THE RACIAL TENSION IS THERE HIS GROUP DOES LITTLE TO DEFUSE SUCH TENSION A MALAYSIAN ACTION FRONT STATEMENT SAID THE BOMBING HAD THE HALLMARK OF A MOSSAD ISRAELI INTELLIGENCE PLOT BY LINKING MR SALAMEH TO SHEIK OMAR ABDELRAHMAN A BLIND MUSLIM CLERIC IN JERSEY CITY NJ WHO HAS BEEN ACCUSED OF FOMENTING VIOLENCE THE FBI IS PRACTICING GUILT BY ASSOCIATION THE MAF STATEMENT SAYS IT ALSO QUESTIONS WHY INVESTIGATORS LINKED SHEIK RAHMAN TO ANOTHER ONETIME FOLLOWER EL SAYYID NOSAIR WHO WAS ACQUITTED OF THE 1990 ASSASSINATION OF RABBI MEIR KAHANE FOUNDER OF THE JEWISH DEFENSE LEAGUE MUSLIMS BEWARE THE NEXT TIME YOU GO TO PRAYER YOU'D BEST CHECK OUT THE FILE ON THE IMAM AND BEFORE ENTERING SCREEN WHO ARE THE OTHER MUSLIMS WHOM YOU WOULD JOIN IN SUBMISSION TO ALLAH THE STATEMENT SAYS ISLAM CLOTHED IN THE AURA OF FUNDAMENTALISM' IS THE TARGET 9303180131 930318 INTERNATIONAL IN FRANCE ONLY THE LEADERS ARE CHANGING CONSERVATIVES FAVORITES IN VOTE WILL STAY THE COURSE BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FRENCH PARLIAMENTARY ELECTIONS ON THE NEXT TWO SUNDAYS ARE GIVING RISE TO A POLITICAL CONUNDRUM BROADLY PUT THEY WILL CHANGE EVERYTHING AND THEY WILL CHANGE NOTHING FOR MONTHS NOW IT HAS BEEN EVIDENT THAT THE RULING SOCIALIST PARTY WILL BE BADLY DEFEATED ALL OPINION POLLS SUGGEST THAT AN ALLIANCE OF THE TWO CONSERVATIVE OPPOSITION GROUPS WILL WIN AN EASY VICTORY CAPTURING AT LEAST 400 OF THE NATIONAL ASSEMBLY'S 577 SEATS AND FORMING THE NEXT GOVERNMENT BUT THE NEW ADMINISTRATION WHILE EMPLOYING DIFFERENT RHETORIC ISN'T EXPECTED TO VEER SUBSTANTIALLY FROM THE PRESENT COURSE PARTICULARLY IN ECONOMIC POLICY STRONGER EMPHASIS WILL BE PLACED ON PRIVATIZATION TAX CUTS AND LOWER SOCIAL COSTS FOR BUSINESS BUT THE FREEMARKET FERVOR OF THE LAST CONSERVATIVE GOVERNMENT WHICH RULED FROM 1986 TO 1988 HAS LARGELY DISSIPATED LEADING OFFICIALS FROM BOTH OPPOSITION GROUPS NOW CONCEDE THEY HAVE LITTLE ROOM TO MANEUVER BECAUSE OF THE ECONOMIC SLOWDOWN AFFLICTING MOST OF EUROPE AND BECAUSE OF THE ALREADYHEFTY FRENCH BUDGET DEFICIT SO DESPITE AN UNEMPLOYMENT CRISIS THAT HAS AT LEAST THREE MILLION PEOPLE ONE OF EVERY 10 FRENCH ADULTS OUT OF WORK CONTINUITY IS LIKELY TO BE THE WATCHWORD IN KEY AREAS INCLUDING THE LEVEL OF GOVERNMENT SPENDING AND MONETARY POLICY POLLS SHOW A RISING FEAR OF UNEMPLOYMENT BUT ALSO A LACK OF FAITH IN POLITICIANS' PROMISES OF QUICKFIX SOLUTIONS EVEN ON SUCH ISSUES AS FRENCH FARMERS AND THE GATT WORLD TRADE TALKS THE NEW CONSERVATIVE GOVERNMENT IS EXPECTED TO BE AS INTRANSIGENT AS THE CURRENT SOCIALIST ONE IF NOT MORE SO WHAT WILL CHANGE NOTHING SAYS DOMINIQUE STRAUSSKAHN THE PRESENT INDUSTRY MINISTER THIS SEEMING LACK OF REAL ALTERNATIVES IS PROVING A TURNOFF FOR MANY FRENCH VOTERS ESPECIALLY THOSE SUFFERING THE EFFECTS OF RECESSION AND IT MAY HELP PUSH UP THE TALLY FOR ENVIRONMENTALISTS AND OTHER FRINGE POLITICAL GROUPS ONE RECENT POLL SHOWED 40 OF THE ELECTORATE WERE BARELY OR NOT AT ALL INTERESTED IN THE CAMPAIGN FOR ALL THE LACK OF SUSPENSE HOWEVER THE ELECTION WILL HAVE A BIG IMPACT ON THE DOMESTIC POLITICAL SCENE PRESIDENT FRANCOIS MITTERRAND'S SECOND AND FINAL TERM AT THE ELYSEE PALACE ENDS IN 1995 AND THIS MONTH'S VOTE IS EXPECTED TO SET OFF A SCRAMBLE FOR A SHOT AT SUCCEEDING HIM ONE OF MR MITTERRAND'S SOCIALIST PARTY COLLEAGUES MICHEL ROCARD HAS ALREADY JUMPED THE GUN IN A SPEECH IN LATE FEBRUARY HE CALLED FOR A POLITICAL BIG BANG THAT WOULD ESSENTIALLY DISSOLVE THE SOCIALIST PARTY INTO A BROADER LEFTIST MOVEMENT INCLUDING ENVIRONMENTALISTS COMMUNISTS AND CENTRIST GROUPS NOW ALIGNED WITH THE RIGHT MR ROCARD ALSO HAS DISTANCED HIMSELF FROM THE PRESIDENT SAYING THIS WEEK THAT THE PEOPLE OF FRANCE ARE SETTLING THEIR SCORES WITH FRANCOIS MITTERRAND FOR THIS ELECTION THE TWO MEN HAVE PAPERED OVER THEIR LARGE PERSONAL AND POLICY DIFFERENCES BUT MANY EXPECT THE BICKERING TO START UP AGAIN AFTERWARDS TENSIONS ALSO ARE LIKELY TO REEMERGE WITHIN BOTH OF THEIR PARTIES WHICH SPLIT DOWN THE MIDDLE DURING LAST YEAR'S REFERENDUM ON THE EUROPEAN COMMUNITY'S MAASTRICHT TREATY CHARLES PASQUA A PROMINENT RPR MEMBER AND A LEADING CAMPAIGNER AGAINST MAASTRICHT HAS ALREADY GIVEN A TASTE OF THINGS TO COME SOUNDING ONE OF VERY FEW DISCORDANT NOTES AT A NATIONAL RPR CONGRESS LAST WEEKEND HE DESCRIBED THE MAASTRICHT TREATY WHICH AIMS TO CREATE A SINGLE EUROPEAN CURRENCY AND A POLITICAL UNION BY THE END OF THE DECADE AS BEING LITTLE MORE THAN THE LAST INCARNATION OF SOCIALISM INTENSE POLITICKING COULD MAKE THE NEXT TWO YEARS DIFFICULT BOTH FOR THE NEW GOVERNMENT AND FOR MR MITTERRAND AIDES TO THE PRESIDENT SAY HE REALIZES THAT THE COMING PERIOD OF COHABITATION WITH A RIGHTWING GOVERNMENT WILL BE AT LEAST AS TROUBLED AS THE LAST ONE IN THE MID1980S MR GISCARD D'ESTAING HAS EVEN HINTED ABOUT ADOPTING A POLICY OF NONCOOPERATION WITH THE PRESIDENT IN AN EFFORT TO FORCE HIM OUT OF OFFICE PREMATURELY IT'S NOT CERTAIN THAT MR MITTERRAND WHO WAS DIAGNOSED AS SUFFERING FROM PROSTATE CANCER LAST YEAR WILL WANT TO ENGAGE IN A BRUISING FIGHT BUT HE STILL HAS SOME CARDS UP HIS SLEEVE HE WIELDS ENORMOUS POWERS UNDER THE FRENCH CONSTITUTION IT IS HIS PREROGATIVE TO PICK THE PRIME MINISTER FOR EXAMPLE SOMETHING THAT PROVIDES HIM WITH A GOLDEN OPPORTUNITY FOR POLITICAL SCHEMING EDOUARD BALLADUR A FORMER FINANCE MINISTER AND CLOSE COLLEAGUE OF MR CHIRAC IS WIDELY VIEWED AS THE LEADING CONTENDER ESPECIALLY IF THE RPR WINS THE BIGGEST NUMBER OF SEATS IN THE NEW NATIONAL ASSEMBLY AS EXPECTED BUT MR MITTERRAND MAY BE TEMPTED TO SOW DISCORD AMONG THE RIGHT AIDES SAY BY INITIALLY CHOOSING SOMEONE ELSE IN THE SMALL NORMANDY TOWN OF ETREPAGNY SUCH POLITICAL INTRIGUES SEEM FAR FROM THE MINDS OF A GROUP OF 50 LOCAL RESIDENTS WHO HAVE COME TO HEAR MR STRAUSSKAHN AND THEIR SOCIALIST CANDIDATE PASCAL LAMY MR LAMY CHIEF OF STAFF TO JACQUES DELORS PRESIDENT OF THE EUROPEAN COMMISSION IN BRUSSELS ISN'T VERY HOPEFUL ABOUT HIS CHANCES OF BEING ELECTED EVEN THOUGH THE AREA CURRENTLY HAS A SOCIALIST MEMBER OF PARLIAMENT AT RALLIES IN THE CONSTITUENCY HE SAYS HE OFTEN HAS BEEN HECKLED BY LOCAL FARMERS ENRAGED AT CUTBACKS IN PRODUCTION AND THEIR INCOME QUESTIONS FROM THE AUDIENCE ARE DISPASSIONATE EXCEPT FOR ONE MAN WHO CALLS ON FRANCE AND EUROPE TO BECOME MORE PROTECTIONIST MR ROCARD'S BIG BANG THE TALK OF ALL PARIS ISN'T EVEN MENTIONED LET ALONE THE INTRICACIES OF ANOTHER COHABITATION GOVERNMENT THERE'S LITTLE EXCITEMENT HERE SHRUGS GHISLAIN BARBEY A TEACHER WHO HAS ALWAYS SUPPORTED THE SOCIALISTS AS HE LEAVES THE MEETING NOT EVEN BIG BANG CHANGES MUCH 9303180130 930318 INTERNATIONAL ISOLATED SERBIA TURNS VULNERABLE AS ECONOMY SINKS BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL AS THE SANCTIONS NOOSE TIGHTENS SERBIA IS RUNNING OUT OF MONEY LITERALLY WITH INFLATION SPIRALING AT 7 A DAY THE SERBIAN GOVERNMENT ORDERED THE OVERWORKED STATE MINT TO PRINT NEW PAPER MONEY IN 10000 DINAR AND 50000 DINAR DENOMINATIONS USUALLY THE BILLS WOULD EXPAND IN SIZE ALONG WITH THEIR VALUE BUT A PAPER SHORTAGE HAS FORCED THE MINT TO GO IN REVERSE THE 50000 DINAR BILL VALUED AT ABOUT 2 AT MONEYCHANGERS HAS SHRUNK TO THE DIMENSIONS OF THE OBSOLETE 100DINAR BILL PROMPTING GRUMBLING ON BELGRADE STREETS THAT NOT ONLY IS THE DINAR WORTHLESS IT IS ALMOST INVISIBLE AS WELL STILL THE SERBIAN GOVERNMENT INTERNATIONALLY ISOLATED FOR FUELING THE WAR IN BOSNIAHERZEGOVINA REMAINS UNMOVED FRANKLY I LIKE THE SMALLER BILLS SAYS KOSTA MIHAILOVIC THE TOP ECONOMIC ADVISER OF SERBIAN PRESIDENT SLOBODAN MILOSEVIC THEY FIT INTO HIS WALLET BETTER HE SAYS EVEN AS THE WESTERN WORLD THREATENS TO PILE ON MORE SANCTIONS THE SERBIAN GOVERNMENT MAINTAINS AN ALOOF AIR TOLD BY UNITED NATIONS DIPLOMATS THAT SERBIA WOULD BE FURTHER ISOLATED IF THE SERBS IN BOSNIAHERZEGOVINA DON'T ACCEPT A UN PEACE PLAN IN NEGOTIATIONS SET TO RESTART THIS WEEK MR MILOSEVIC REPLIED THAT HE DIDN'T BELIEVE THEM AND BESIDES HE SAID SERBIA WOULD SURVIVE REMEMBER ROBINSON CRUSOE SAYS MR MIHAILOVIC A FORMER ECONOMICS PROFESSOR WHO OFTEN CITED THE FICTIONAL CHARACTER IN HIS LECTURES ON ISOLATED ECONOMIES IF ROBINSON CRUSOE COULD SURVIVE WITHOUT ANY MEANS THEN SO CAN WE IT IS A FACT THOUGH THAT THE SERBIAN ECONOMY IS GOING DOWN FOR THE COUNT AND THAT SOCIAL DISCONTENT IS RISING IN A COUNTRY WHOSE PEOPLE SAVOR GENEROUS FEASTS THERE IS LITTLE BREAD LEFT IN BELGRADE STORES AFTER 9 AM MILLIONS OF WORKERS ARE ON FORCED VACATION GETTING PAID WORTHLESS MONEY FOR PRETENDING TO WORK THREEQUARTERS OF THE FACTORIES ARE CLOSED A ROGUES' GALLERY OF CHARACTERS DOMINATE THE BANKING SYSTEM YET FEW SERBS PUBLICLY CLAMOR FOR MR MILOSEVIC'S OUSTER OFFICIALLY THROUGH STATERUN TELEVISION SERBS RELENTLESSLY HEAR THAT THE ECONOMIC MESS IS THE FAULT OF THE US AND WESTERN EUROPE ALSO MANY SERBS HAVE A FINANCIAL STAKE IN THE ECONOMIC CHAOS BUY TODAY SELL TOMORROW OR SELL TODAY BUY YESTERDAY CRACKED JEZDIMIR VASILJEVIC IN AN INTERVIEW TWO MONTHS AGO WHEN DESCRIBING HIS BANKING BUSINESS WHICH TOOK IN HARD CURRENCY SAVINGS PAID AS MUCH AS 15 INTEREST A MONTH AND USED THE PRINCIPAL TO DEAL IN GASOLINE AND OTHER SUPPLIES CUT OFF BY THE SANCTIONS THE MAN WHO SET UP LAST YEAR'S BOBBY FISCHER BORIS SPASSKY CHESS REMATCH CLAIMED HE HAD ONE MILLION CUSTOMERS WHO WERE LIVING OFF THE INTEREST PAYMENTS MAKE THAT ONE MILLION VERY ANGRY CUSTOMERS LAST WEEK MR VASILJEVIC SKIPPED OUT OF THE COUNTRY BLASTING GOVERNMENT OFFICIALS FOR STEALING STATE FUNDS AND TRYING TO EXTORT MONEY FROM HIM HE HAS BEEN QUOTED BY SERBIAN NEWSPAPERS CALLING FOR THE OUSTER OF THE GOVERNMENT OF CRIMINALS MR VASILJEVIC'S BANKS CLOSED BLOCKING MILLIONS OF DOLLARS OF SAVINGS AND THE DEPOSITORS HAVE REACTED WITH A REVOLUTIONARY FERVOR STORMING BANK OFFICES AND TYING UP TRAFFIC IN DOWNTOWN BELGRADE WHEN THEY MARCHED ON THE SERBIAN PARLIAMENT THIS PANIC COMBINED WITH THE NEWS THAT A COUPLE OF CABINET MINISTERS HAVE BEEN ARRESTED FOR CORRUPTION IS INCREASING THE PRESSURE ON MR MILOSEVIC WHILE THE SERBS CONTINUE TO SCORE SUCCESSES ON THE BATTLEFIELD OVERRUNING MUSLIM VILLAGES IN EASTERN BOSNIA SOCIAL UNREST ROILS ON THE HOME FRONT MILOSEVIC FOES BELIEVE THE COMMUNISTTURNEDNATIONALIST IS NOW MORE VULNERABLE ECONOMICALLY THAN MILITARILY WHEN THE ECONOMY COLLAPSES WE SEE OUR CHANCE OUR OPENING SAYS VLADETA JANKOVIC A LEADER OF THE DEMOCRATIC OPPOSITION OF SERBIA AFTER ORGANIZING STREET DEMONSTRATIONS LAST YEAR THE MOVEMENT PULLED BACK FROM CONFRONTATION SUBDUED BY MR MILOSEVIC'S NATIONALIST FERVOR NOW AS THE WAR IN BOSNIA CONTINUES THE DEMOCRATIC OPPOSITION IS HOPING THAT THE ECONOMIC DESPAIR WILL SPARK A GENERAL UPRISING AGAINST THE GOVERNMENT WE'LL USE THIS PERIOD TO SHOW HOW DESPERATE THE SITUATION HERE IS AND HOW WE COULD CHANGE IT BY GETTING SANCTIONS LIFTED SAYS MR JANKOVIC WE'LL JUST SIT AND WAIT 9303180129 930318 TREASURY IS PLANNING TO RAISE 525 BILLION WITH THE SALE OF NOTES WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 525 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 1525 BILLION OF TWOYEAR NOTES ON WEDNESDAY AND 11 BILLION OF FIVEYEAR NOTES ON THURSDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 2101 BILLION IN MATURING TWOAND FIVEYEAR NOTES THE NEW TWOYEAR NOTES WILL BE DATED MARCH 31 AND MATURE MARCH 31 1995 THE NEW FIVEYEAR NOTES WILL BE DATED MARCH 31 AND MATURE MARCH 31 1998 THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827K27 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827K35 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EST NEXT WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EST NEXT THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST 9303180128 930318 FINANCING BUSINESS GENEVA STEEL GENEVA STEEL OF VINEYARD UTAH SAID IT COMPLETED ITS FINANCING PLAN THE PLAN INCLUDES THE PUBLIC OFFERING OF 135 MILLION PRINCIPAL AMOUNT OF 11 1/8 SENIOR NOTES DUE 2001 THE PRIVATE PLACEMENT OF 40 MILLION OF 14 CUMULATIVE REDEEMABLE EXCHANGEABLE SERIES A PREFERRED STOCK AND RELATED WARRANTS TO PURCHASE AN AGGREGATE OF 1132000 SHARES OF CLASS A COMMON THE REPURCHASE OF 70 MILLION PRINCIPAL AMOUNT OF THE COMPANY'S EXISTING TERM DEBT AND THE RECEIPT OF CONSENTS FROM HOLDERS OF THE COMPANY'S EXISTING TERM DEBT AND FROM THE LENDERS UNDER THE COMPANY'S REVOLVING CREDIT FACILITY ASIDE FROM THE REPURCHASE OF 70 MILLION OF TERM DEBT THE NET PROCEEDS FROM THE FINANCING PLAN WILL BE USED PRIMARILY TO FINANCE THE COMPLETION OF THE COMPANY'S CONTINUOUSCASTING FACILITY 9303180127 930318 TRANSCANADA PIPELINES' TOLLS CALGARY ALBERTA CANADA'S NATIONAL ENERGY BOARD APPROVED AN AVERAGE INCREASE OF 02 IN THE TOLLS CHARGED BY TRANSCANADA PIPELINES LTD TO SHIP NATURAL GAS TO CANADIAN AND US MARKETS THE NEW TOLLS WILL TAKE EFFECT APRIL 1 THE BOARD APPROVED A REVENUE REQUIREMENT OF 16 BILLION CANADIAN DOLLARS US128 BILLION IN 1993 C359 MILLION LESS THAN THAT REQUESTED BY TRANSCANADA THE REGULATOR ALSO APPROVED A RATE OF RETURN ON COMMON EQUITY OF 1225 IN 1993 DOWN FROM 1325 IN 1992 TRANSCANADA IS THE COUNTRY'S LARGEST NATURAL GAS PIPELINE COMPANY 9303180126 930318 POLITICS & POLICY HEALTH INDUSTRY ENLISTS PROMINENT LOBBYISTS FOR FIGHT AFTER BEING SPURNED BY POLICYMAKERS BY JILL ABRAMSON AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON HILLARY RODHAM CLINTON'S EDICT THAT SHE DOESN'T WANT TO HAVE HEALTHCARE LEGISLATION IN THE CLINTON ADMINISTRATION WRITTEN BY ANY SPECIALINTEREST GROUP HAS HARDLY PUT A DAMPER ON HEALTHINDUSTRY LOBBYING TO INFLUENCE THE PROPOSALS DRUG COMPANIES THE INSURANCE INDUSTRY HOSPITALS DOCTORS AND AN ARRAY OF OTHER HEALTH INTERESTS ARE SNAPPING UP POLITICALLY CONNECTED LOBBYISTS AND LAWYERS TO PREPARE FOR THE STRUGGLES AHEAD ALTHOUGH PRESIDENT CLINTON HAS OFTEN VOICED HIS DISTASTE FOR WASHINGTON'S REVOLVINGDOOR CULTURE AND INSTITUTED NEW ETHICS GUIDELINES INTENDED TO CLAMP DOWN ON INFLUENCEPEDDLING MANY OF THOSE NOW BEING HIRED TO LOBBY ON HEALTH POLICY WORKED IN THE CLINTON CAMPAIGN OR TRANSITION AND WHILE THE PRESIDENT HAS ALSO EXPRESSED SUPPORT FOR CAMPAIGN FINANCE REFORM THIS LOBBYING BLIZZARD WAS PREFACED BY RECORD CONTRIBUTIONS FROM THE HEALTH INDUSTRY TO POLITICAL CANDIDATES INCLUDING MR CLINTON IN THE 1992 ELECTIONS JOHNSON & JOHNSON FOR EXAMPLE RECENTLY SIGNED A LUCRATIVE RETAINER WITH THE WEXLER GROUP ONE OF WASHINGTON'S PREMIER LOBBYING FIRMS THE FIRM IS HOME TO BRUCE FRIED WHO HEADED THE CLINTON CAMPAIGN'S HEALTH ADVISORY GROUP AND WAS A MEMBER OF THE HEALTH TRANSITION TEAM ANNE WEXLER THE FORMER DEMOCRATIC WHITE HOUSE AIDE WHO RAISED SIGNIFICANT CONTRIBUTIONS FOR THE CLINTON CAMPAIGN AND BETSEY WRIGHT WHO WAS MR CLINTON'S CHIEF OF STAFF WHEN HE WAS GOVERNOR OF ARKANSAS THE ADMINISTRATION'S ETHICS GUIDELINES PROHIBIT MR FRIED FROM LOBBYING THE ADMINISTRATION ON HEALTH CARE MATTERS FOR SIX MONTHS FROM INAUGURATION DAY BUT HE ISN'T RESTRICTED FROM LOBBYING CONGRESS ON BEHALF OF JOHNSON & JOHNSON OR ANY OTHER HEALTH CARE CLIENTS THOUGH MS WEXLER INSISTS HE DOESN'T DO THAT MEANWHILE OTHER WEXLER GROUP PROFESSIONALS CAN LOBBY THE EXECUTIVE BRANCH IN MR FRIED'S PLACE THE FIRM ALSO REPRESENTS THE CATHOLIC HEALTH ASSOCIATION AS WELL AS FHP INTERNATIONAL CORP A LARGE MANAGEDCARE FIRM AND HAS RECENTLY SIGNED ON SEVERAL NEW HEALTH CLIENTS FOR HIS PART MR FRIED SEES NO CONFLICT IN HIS TRANSFORMATION FROM CLINTON HEALTH ADVISER TO DRUGCOMPANY LOBBYIST EVEN THOUGH THE PHARMACEUTICAL INDUSTRY IS EXPECTED TO CROSS SWORDS WITH THE ADMINISTRATION OVER SEVERAL HEALTH INITIATIVES INCLUDING PRICE CONTROLS AND UNIVERSAL PURCHASE OF VACCINES IN FACT MR FRIED RELISHES HIS ROLE AS HEALTH RAINMAKER FOR THE WEXLER GROUP I HOPE TO BE ABLE TO DO THAT HE SAYS MS WEXLER SAYS JOHNSON & JOHNSON IS REALLY A HEALTH CARE COMPANY NOT A DRUG COMPANY THEY'VE GOT A VERY WELLARTICULATED POSITION ON HEALTH CARE REFORM MUCH OF WHICH IS IN SYNC WITH THE PRESIDENT SO IT'S NOT A PROBLEM FOR US SHE SAYS WHILE JOHNSON & JOHNSON DOES SUPPORT THE MANAGED COMPETITION APPROACH EXPECTED TO BE A CORNERSTONE OF MR CLINTON'S PLAN IT ADAMANTLY OPPOSES THE SOCALLED GLOBAL BUDGET HE INTENDS TO PROPOSE TO LIMIT NATIONAL HEALTH EXPENDITURES THE WEXLER GROUP CERTAINLY ISN'T THE ONLY ONE CASHING IN FOR INSTANCE THERE'S THE DUBERSTEIN GROUP HEADED BY FORMER REAGAN WHITE HOUSE CHIEF OF STAFF KENNETH DUBERSTEIN AND ALSO INCLUDES MICHAEL BERMAN WHO HELPED RUN THE DEMOCRATIC CONVENTION FOR PRESIDENT CLINTON AND SHEPHERDED THE NOMINATION OF ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER THROUGH CONGRESS THE DUBERSTEIN GROUP RECENTLY LANDED A BIG ACCOUNT THE HEALTHCARE LEADERSHIP COUNCIL A COALITION OF BIG COMPANIES AND HOSPITALS THE COUNCIL HAD FIRST TURNED TO ANOTHER PROMINENT DEMOCRAT HILL & KNOWLTON'S HOWARD PASTER TO HANDLE ITS LOBBYING BUT MR PASTER WASN'T AVAILABLE HE HAD SIGNED ON AS THE WHITE HOUSE'S TOP LOBBYIST HOGAN & HARTSON A LARGE WASHINGTON LAW FIRM WHOSE PARTNERS INCLUDE A BEVY OF TOP CLINTON CAMPAIGN ADVISERS FORMER PARTNER SAMUEL BERGER IS NOW THE PRESIDENT'S DEPUTY NATIONAL SECURITY ADVISER HAS REGISTERED TO LOBBY FOR A HALFDOZEN NEW HEALTH CLIENTS THE FIRM IS NOW MONITORING HEALTH CARE REFORM FOR ABOUT 15 CLIENTS ACCORDING TO PARTNER MIKE HOUSE WHO WAS COCHAIRMAN OF THE POTOMAC GROUP A DEMOCRATIC NATIONAL COMMITTEE FUNDRAISING COMMITTEE WE ARE NOT FORMING COALITIONS FOR ANY OF THE DRUG COMPANIES HE SAYS ALTHOUGH HOGAN & HARTSON HAS BRISTOLMYERS SQUIBB CO AND GLAXO HOLDINGS PLC AS CLIENTS DRUG COMPANIES HAVE BEEN THE MOST AGGRESSIVE IN SNAPPING UP LOBBYING MUSCLE ALTHOUGH VIRTUALLY ALL MAJOR PHARMACEUTICAL COMPANIES HAVE LARGE INHOUSE GOVERNMENTAFFAIRS STAFFS THAT INCLUDE AN ARRAY OF FORMER TOP CAPITOL HILL STAFFERS THEY ARE ADDING OUTSIDE HELP AS WELL AS THEY GIRD FOR A CONFRONTATION WITH THE ADMINISTRATION OVER PRICING AND PROFITS FOR EXAMPLE AMERICAN CYANAMID CO HAS RETAINED BAILEY & ROBINSON A LOBBYING FIRM THAT INCLUDES PETER ROBINSON A FORMER TOP AIDE TO HOUSE SPEAKER THOMAS FOLEY AN AD HOC COALITION OF COMPANIES INCLUDING GD SEARLE CO HAS SIGNED UP POWELL TATE & ASSOCIATES FOR PUBLIC RELATIONS ADVICE AND CASSIDY & ASSOCIATES FOR LOBBYING BOTH COMPANIES WERE WELL REPRESENTED INSIDE THE CLINTON CAMPAIGN SMITHKLINE BEECHAM PLC HAS HIRED PATTON BOGGS & BLOW THE LOBBYING POWERHOUSE HEADED BY THOMAS HALE BOGGS JR AND THE FORMER HOME OF COMMERCE SECRETARY RON BROWN TO REPRESENT IT ON CHILDHOODVACCINE ISSUES PATTON BOGGS HAS ALSO BEEN RETAINED BY BLUE CROSS OF CALIFORNIA THE AMERICAN COLLEGE OF GASTROENTEROLOGY AND THE NATIONAL RETAIL FEDERATION THE DEMOCRATHEAVY FIRM RECENTLY HIRED THOMAS SCULLY A KEY HEALTH OFFICIAL IN THE BUSH ADMINISTRATION SUBSTANTIVE KNOWLEDGE MATTERS A HECK OF A LOT MORE THAN CONTACTS SAYS STUART PAPE A PATTON BOGGS LAWYER AND FORMER FOOD AND DRUG ADMINISTRATION OFFICIAL IN THE CARTER ADMINISTRATION VARIOUS SEGMENTS OF THE HEALTH CARE INDUSTRY ARE SEEKING OUT THEIR OWN LOBBYISTS WESTERN DENTAL SERVICES INC HAS RETAINED MANATT PHELPS & PHILLIPS WHOSE FORMER NAME PARTNER MICKEY KANTOR WAS A TOP CLINTON CAMPAIGN AIDE AND IS NOW THE US TRADE REPRESENTATIVE THE EXPLOSIVE GROWTH IN HEALTH LOBBYING IS MIRRORED BY A BOOM OF HEALTHINDUSTRY CAMPAIGN CONTRIBUTIONS DURING THE PAST ELECTION CYCLE IN A RECENT STUDY THE NONPARTISAN CENTER FOR RESPONSIVE POLITICS FOUND POLITICAL ACTION COMMITTEES TIED TO THE HEALTH INDUSTRY HAD INCREASED THEIR 1992 CONTRIBUTIONS BY 32 OVER 1990 THE BIGGEST INCREASE OF ANY INDUSTRY GROUP ALL TOLD HEALTH PACS FUNNELED 144 MILLION TO CONGRESSIONAL CANDIDATES WHO RAN LAST YEAR THE AMERICAN PHARMACEUTICAL ASSOCIATION INCREASED ITS PAC CONTRIBUTIONS 89 DOLING OUT 132000 ITS CONTRIBUTIONS TO CONGRESSIONAL CANDIDATES WERE GENEROUSLY AUGMENTED BY INDIVIDUAL DRUG COMPANIES SUCH AS PFIZER INC WHICH DISTRUBUTED 188000 A 37 INCREASE FROM 1990 GLAXO WITH 173000 A 64 INCREASE AND MERCK & CO WHOSE PAC DISTRIBUTED 136000 A 56 INCREASE PRESIDENT CLINTON WAS ALSO A MAJOR BENEFICIARY OF THE STEPPEDUP HEALTH CONTRIBUTIONS THE INDUSTRY PROVIDED THE DEMOCRATIC NATIONAL COMMITTEE WITH NEARLY 500000 IN SOFT MONEY CONTRIBUTIONS THE LARGE DONATIONS THAT ARE MADE OUTSIDE FEDERAL ELECTION LAWS TO SUPPORT THE POLITICAL PARTIES OBSERVES ELLEN MILLER EXECUTIVE DIRECTOR OF THE CENTER FOR RESPONSIVE POLITICS THESE ARE INTERESTS CLEARLY GEARING UP FOR A MAJOR LEGISLATIVE BATTLE LAWMAKERS WHO RECEIVED THE LARGEST CONTRIBUTIONS FROM HEALTHINDUSTRY POLITICAL COMMITTEES IN THE 19911992 ELECTION CYCLE 9303180125 930318 CANADA AUCTIONS 8 BONDS OTTAWA THE CANADIAN GOVERNMENT REPORTED AN AVERAGE YIELD OF 8277 AT AN AUCTION OF 110 BILLION CANADIAN DOLLARS US8795 MILLION OF 8 BONDS DUE JUNE 1 2023 THE PRICE EQUIVALENT OF THE AVERAGE YIELD WAS 96925 PROCEEDS OF THE ISSUE WILL BE USED TO REDEEM C925 MILLION OF GOVERNMENT BONDS DUE APRIL 1 AND FOR GENERAL GOVERNMENT PURPOSES 9303180124 930318 SPRINT'S VENTURE IN BULGARIA KANSAS CITY MO SPRINT CORP SAID IT WILL FORM A JOINT VENTURE DATA COMMUNICATIONS COMPANY FOR BUSINESS CUSTOMERS IN BULGARIA WITH THAT COUNTRY'S STATEOWNED TELEPHONE COMPANY NO TERMS OF THE JOINTVENTURE AGREEMENT WERE DISCLOSED THE NEW COMPANY WILL PROVIDE SPRINTNET DATA COMMUNICATIONS SERVICES INCLUDING ELECTRONIC MESSAGING AND STOREANDFORWARD FACSIMILE SERVICES TO USERS IN BULGARIA VIA NETWORK ACCESS CENTERS AROUND THE COUNTRY THE NETWORK ACCESS CENTERS WILL ENABLE BULGARIAN CUSTOMERS TO LINK HOST AND PERSONAL COMPUTERS WITH OTHERS AROUND THE WORLD 9303180123 930318 AMR TO RETIRE 25 DC10 JETS CUT CAPACITY 3 LAYOFFS SERVICE CUTBACKS EXPECTED GROUNDINGS ARE TO BEGIN IN JUNE BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN AIRLINES WILL GROUND 25 MCDONNELL DOUGLAS DC10S IN ITS FLEET A MOVE THAT THE NATION'S LARGEST CARRIER SAID WILL CUT ITS CAPACITY BY 3 THIS YEAR AND ULTIMATELY LEAD TO SOME LAYOFFS AND SERVICE CUTBACKS THE UNIT OF DALLASBASED AMR CORP SAID THE AIRCRAFT OLDERMODEL DC1010S THAT IT OWNS OUTRIGHT WILL BE REMOVED FROM SERVICE STARTING IN JUNE AND TAKEN OUT OF THE FLEET ONE BY ONE UNTIL YEAR'S END MOST OF THE PLANES ARE USED ON DOMESTIC FLIGHTS SUCH AS AMERICAN'S FLIGHTS FROM NEW YORK TO LOS ANGELES OR TO HAWAII AMERICAN CURRENTLY HAS 673 JETS IN ITS FLEET THE AIRLINE HAD BEEN WEIGHING WHETHER TO ELIMINATE THE DC10S OR A LIKE NUMBER OF NEWERVINTAGE AIRBUS INDUSTRIE A300S AS PART OF A WIDERANGING PLAN TO CUT COSTS AND CAPACITY TRIM UNPROFITABLE OPERATIONS AND MOVE TOWARD MORE FEEBASED AIRLINE MANAGEMENT SERVICES IT CAN SELL TO OTHER CARRIERS THE REMOVAL WILL ULTIMATELY RESULT IN AMERICAN EITHER WITHDRAWING FROM SOME MARKETS OR REDUCING THE NUMBER OF ITS FLIGHTS TO SOME CITIES BUT YESTERDAY A COMPANY SPOKESMAN SAID IT WAS TOO SOON TO SAY WHICH ONES AS AMERICAN PHASES OUT THE DC10S IT WILL SUBSTITUTE SMALLER NARROWBODY JETS AND REPLACE THOSE IN TURN PERHAPS BY AMR EAGLE COMMUTER PLANES SIMILARLY THE SPOKESMAN SAID IT IS SAFE TO SAY THERE WILL BE LAYOFFS BECAUSE THE DC10S WERE PARTICULARLY LABORINTENSIVE BUT HE ADDED THAT THE COMPANY DOESN'T CURRENTLY KNOW HOW MANY PEOPLE MIGHT BE AFFECTED AMR HAS SAID IT EXPECTS TO TAKE A WRITEDOWN AFTER THE CURRENT QUARTER BECAUSE OF THE GROUNDING BUT IT'S UNCLEAR HOW BIG THE CHARGE MIGHT BE OR WHEN IT WOULD BE TAKEN UNTIL THE COMPANY KNOWS HOW IT WILL DISPOSE OF THE DC10S THE AMERICAN SPOKESMAN SAID THE BOOK VALUE OF ALL THE PLANES TOGETHER WAS ABOUT 200 MILLION BUT USED PLANES HAVE BEEN SELLING FOR WELL BELOW THEIR BOOK VALUE LATELY BECAUSE OF A GLUT OF SUCH EQUIPMENT THE DC10S ARE ABOUT 20 YEARS OLD REQUIRE A THREEPERSON COCKPIT CREW AND BURN 39 MORE FUEL THAN THE A300S AFTER AMERICAN DISPOSES OF THESE DC10S THE COMPANY WILL STILL HAVE 24 OTHER DC1010S AND 10 NEWERMODEL DC1030S THE A300S ARE TWOPILOT TWOENGINE PLANES THAT ARE ABOUT FIVE TO SIX YEARS OLD AMERICAN LEASES 25 FROM THE MANUFACTURER AND OWNS THE OTHER 10 OUTRIGHT AMR COMMON STOCK WAS QUOTED AT 59375 DOWN 50 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9303180122 930318 TECHNOLOGY SYNTEX ACQUIRES DRUG RIGHTS SYNTEX CORP SAID IT ACQUIRED EXCLUSIVE US MARKETING RIGHTS TO NAPROXEN AN ARTHRITIS RELIEF PRODUCT MADE BY ELAN CORP OF IRELAND SYNTEX CORP SAID IT ACQUIRED EXCLUSIVE US MARKETING RIGHTS TO THE ONCEDAILY FORMULATION OF NAPROXEN AN ARTHRITIS RELIEF PRODUCT MADE BY ELAN CORP OF IRELAND AN ARTICLE YESTERDAY FAILED TO MENTION THE TYPE OF FORMULATION OF NAPROXEN 9303180121 930318 NORTHWEST'S MACHINISTS UNION OPENS SEPARATE TALKS AS LABOR UNITY SHATTERS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL THE MACHINISTS' UNION AT NORTHWEST AIRLINES OPENED SEPARATE NEGOTIATIONS WITH THE TROUBLED AIRLINE SHATTERING LABOR UNITY OVER 883 MILLION IN CONCESSIONS SOUGHT BY THE COMPANY THE MOVE CAME AS THE UNIONS REPRESENTING THE MACHINISTS AND THE PILOTS AT NORTHWEST BICKERED PUBLICLY OVER WHO HAD BETRAYED THE COALITION OF SIX UNIONS AT THE AIRLINE THEY'RE GOING TO HAVE TO NEGOTIATE THEIR OWN AGREEMENT WITH THE COMPANY SAID JOHN MASSETTI A LOCAL OFFICIAL OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS AT NORTHWEST REFERRING TO THE PILOTS MR MASSETTI SAID THE MACHINISTS BELIEVE THAT THE AIR LINE PILOTS ASSOCIATION BREACHED AN AGREEMENT AMONG THE UNIONS BY NEGOTIATING SEPARATELY WITH THE COMPANY LAST WEEK WHILE ACKNOWLEDGING A MEETING WITH NORTHWEST CHIEF EXECUTIVE JOHN DASBURG THE PILOTS SAID THAT SECRET TALKS SIMPLY DID NOT OCCUR THE FALLING OUT AMONG THE PILOTS AND MACHINISTS ALL BUT DESTROYS THE EFFECTIVENESS OF THE UNION COALITION AT NORTHWEST AND OTHER AIRLINES THE PILOTS AND MACHINISTS ARE THE MOST POWERFUL UNIONS THAT IS BOTH BECAUSE A STRIKE BY EITHER CAN SERIOUSLY HOBBLE AN AIRLINE AND BECAUSE THE TWO UNIONS HAVE MORE ECONOMIC POWER THAN OTHER AIRLINE UNIONS THE LABOR SPLIT COULD HELP NORTHWEST A UNIT OF CLOSELY HELD WINGS HOLDINGS INC IF IT IS ABLE TO NEGOTIATE SEPARATE DEALS AS THE COALITION WEAKENS BUT IT COULD ALSO HURT IF IT DELAYS AN OVERALL SETTLEMENT NORTHWEST IS SEEKING CONCESSIONS OF 397 MILLION FROM THE MACHINISTS 379 MILLION FROM THE PILOTS AND 107 MILLION FROM THE FOUR OTHER UNIONS THE UNIONS AGREED TO PROVIDE CONCESSIONS THIS PAST FALL AT STAKE NOW IS WHO GIVES WHAT AND WHAT THE UNIONS WILL GET IN RETURN FOR THE CONCESSIONS THE PILOTS BY FAR THE HIGHEST PAID OF THE EMPLOYEE GROUPS AT NORTHWEST ALLEGE THAT THE AIRLINE TRIED TO DIVIDE THE LABOR COALITION BY PROPOSING GRADUATED SALARY CUTS THAT WOULD HIT HIGHERPAID EMPLOYEES HARDEST THE PILOTS ARE INSISTING ON EQUAL PERCENTAGE CUTS IN WAGES AND BENEFITS FOR EACH UNION THE PILOTS SAID THEY STILL PREFER A NEGOTIATED SETTLEMENT WITH ALL THE UNIONS WITH NORTHWEST'S LENDERS PARTICIPATING AT THE SAME TIME HOWEVER THE PILOTS SAID IN A LETTER TO MR DASBURG IF THE PRINCIPLES OF A UNIVERSAL SOLUTION AND FAIR SHARE ARE NOT PART OF THE PROCESS THEN ALPA WILL SIMPLY NOT PARTICIPATE AND MANAGEMENT MUST BE PREPARED TO ACCEPT THE CONSEQUENCES THE CRACK IN THE COALITION CAME AFTER THE UNIONS APPEARED TO HOLD TOGETHER IN THE WAKE OF NORTHWEST'S CONTRACT OFFER THIS MONTH THE COALITION REJECTED THE OFFER AS WHOLLY UNACCEPTABLE AND DIDN'T MEET A MARCH 10 DEADLINE SET BY NORTHWEST FOR A FORMAL RESPONSE AMONG OTHER THINGS NORTHWEST BASED IN ST PAUL MINN HAD OFFERED TO GIVE EMPLOYEES A 20 EQUITY STAKE AND THREE OF 15 BOARD SEATS IN RETURN FOR THE CONCESSIONS OVER A THREEYEAR PERIOD NORTHWEST IS SUFFERING FROM THE AIRLINE INDUSTRY'S SLUMP AND FROM A 4 BILLIONPLUS DEBT LOAD LARGELY FROM THE 1989 LEVERAGED BUYOUT LED BY PART OWNERS ALFRED CHECCHI AND GARY WILSON A NORTHWEST SPOKESMAN DECLINED TO COMMENT ON THE FIGHT AMONG THE LABOR GROUPS BUT HE SAID THE AIRLINE IS IN COMMUNICATION WITH THE UNIONS AND WE ARE MAKING PROGRESS 9303180119 930318 SCHERER'S PACT WITH MARQUEST ATLANTA SCHERER HEALTHCARE INC SAID IT COMPLETED AN AGREEMENT TO PROVIDE MARQUEST MEDICAL PRODUCTS INC WITH AS MUCH AS 45 MILLION IN FINANCING AND TO ASSIST IN PROVIDING AN ADDITIONAL 45 MILLION TO MARQUEST THROUGH A MORTGAGEDEBT GUARANTEE SCHERER SAID THE PACT COULD PROVIDE IT WITH MAJORITY OWNERSHIP OF MARQUEST ENGLEWOOD COLO A MAKER OF DISPOSABLE RESPIRATORY AND ANESTHESIA DEVICES UNDER THE AGREEMENT SCHERER SAID ITS STAKE IN MARQUEST COULD INCREASE TO 65 DEPENDING ON STOCK PRICES AND THE NUMBER OF WARRANTS ULTIMATELY EXERCISED BY SCHERER A HEALTHCARE AND PHARMACEUTICALS CONCERN 9303180118 930318 FINANCING BUSINESS BANCINSURANCE CORP BANCINSURANCE CORP COLUMBUS OHIO SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF TWO MILLION COMMON SHARES CERTAIN SHAREHOLDERS HAVE GRANTED THE UNDERWRITERS A 30DAY OPTION TO PURCHASE AS MANY AS 300000 ADDITIONAL COMMON SHARES TO COVER OVERALLOTMENTS LEAD MANAGER FOR THE PROPOSED OFFERING WOULD BE FAHNESTOCK & CO NEW YORK BANCINSURANCE SAID THE INSURANCE HOLDING COMPANY SAID IT PLANS TO USE PROCEEDS FROM THE PROPOSED OFFERING TO INCREASE THE CAPITAL AND SURPLUS OF OHIO INDEMNITY CO ITS INSURANCE UNIT TO REPAY DEBT ON THAT UNIT'S REVOLVING CREDIT FACILITY AND FOR GENERAL CORPORATE PURPOSES BANCINSURANCE SAID IT CURRENTLY HAS ABOUT 58 MILLION COMMON SHARES OUTSTANDING 9303180117 930318 INTERNATIONAL NIPPON TELEGRAPH SPENDING TOKYO JAPANESE TELECOMMUNICATIONS CONCERN NIPPON TELEGRAPH & TELEPHONE CORP SAID IT BOUGHT 784 MILLION OF TELECOMMUNICATIONS EQUIPMENT ABROAD IN THE CURRENT FISCAL YEAR UP 30 FROM THE PREVIOUS YEAR FOREIGN PURCHASES HAVE ACCOUNTED FOR 14 OF NTT'S TOTAL PROCUREMENT IN THE FISCAL YEAR ENDING THIS MONTH KATSUYA OKIMI DIRECTOR GENERAL OF THE COMPANY'S INTERNATIONAL PROCUREMENT OFFICE SAID HE SAID 95 OF THE FOREIGN PURCHASES WERE FROM US SUPPLIERS ABOUT THE SAME AS IN THE PREVIOUS FISCAL YEAR THE US AND OTHER NATIONS HAVE COMPLAINED THAT JAPAN HAS SHUT OUT FOREIGN MANUFACTURERS FROM SOME OF ITS LUCRATIVE MARKETS AND URGED JAPAN TO BUY MORE EQUIPMENT ABROAD 9303180116 930318 BUSINESS BRIEFS VMX INC COMPLETED ITS ACQUISITION OF CLOSELY HELD RHETOREX INC FOR 175 MILLION COMMON SHARES AT&T NETWORK CABLE SYSTEMS A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO FORMED A JOINT VENTURE WITH YAZAKI ELECTRIC WIRE CO OF JAPAN TO SELL FIBER OPTIC CABLE TO JAPANESE TELECOMMUNICATIONS AND DATA COMMUNICATIONS MARKETS SCOTT PAPER CO'S BOARD APPROVED SPENDING ABOUT 160 MILLION FOR IMPROVEMENTS AT ITS SANITARY TISSUE MILL NEAR OWENSBORO KY INSURANCE AUTO AUCTIONS INC OF NORTH HOLLYWOOD CALIF ACQUIRED RIVAL ORANGE COUNTY SALVAGE SALES INC FOR 125 MILLION MERRYGOROUND ENTERPRISES INC AGREED TO PURCHASE THE 476STORE CHESS KING MEN'S SPORTSWEAR UNIT OF MELVILLE CORP TERMS WEREN'T DISCLOSED MCDONNELL DOUGLAS CORP COMPLETED THE SALE OF ITS INTERNATIONAL COMPUTER INFORMATION DIVISION TO A GROUP OF INSTITUTIONAL INVESTORS ORGANIZED BY BARING CAPITAL INVESTORS LTD OF LONDON TERMS WEREN'T DISCLOSED TEKTRONIX INC APPROVED A PLAN TO REPURCHASE AS MANY AS TWO MILLION SHARES OF ITS STOCK TO OFFSET SHARE ISSUANCES FROM THE EXERCISE OF STOCK OPTIONS 9303180115 930318 COCACOLA PLANS RUSSIAN PLANT ATLANTA COCACOLA CO SAID IT PLANS TO SPEND MORE THAN 50 MILLION OVER THREE YEARS TO BUILD A SOFTDRINK PRODUCTION FACILITY IN ST PETERSBURG RUSSIA THE SOFTDRINK CONCERN SAID THE PLANT WILL ALLOW COCACOLA BEVERAGES TO BE PRODUCED LOCALLY SERVING A MARKET OF 10 MILLION PEOPLE THIS CONFIRMS OUR LONGTERM COMMITMENT TO BUILDING A MODERN SOFTDRINK SYSTEM THROUGHOUT RUSSIA AND TO HAVING OUR PRODUCTS PRODUCED BY RUSSIANS FOR RUSSIAN CONSUMERS AND SOLD FOR RUBLES THE COMPANY SAID 9303180114 930318 FINANCING BUSINESS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC DALLAS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A SHELF REGISTRATION FOR UP TO 400 MILLION IN DEBT SECURITIES THE ENERGY SERVICES AND ENGINEERING CONCERN SAID PROCEEDS WILL BE USED FOR GENERAL PURPOSES INCLUDING CAPITAL EXPENDITURES AND ACQUISITIONS DRESSER SAID IT HASN'T DECIDED WHEN THE OFFERING WILL BEGIN 9303180113 930318 HARSCO DIVISION GETS ORDER CAMP HILL PA HARSCO CORP SAID ITS BMYWHEELED VEHICLES DIVISION PART OF ITS BMY DEFENSE GROUP RECEIVED AN INTERNATIONAL ORDER VALUED AT ABOUT 44 MILLION FROM AN UNDISCLOSED PARTY FOR PRODUCTION OF THE COMPANY'S M939A2 FIVETON TRUCKS THE INDUSTRIAL COMPANY PROVIDES PRODUCTS AND SERVICES FOR DEFENSE INDUSTRIAL COMMERCIAL AND CONSTRUCTION MARKETS 9303180112 930318 CORPORATE FOCUS MGIC FLOURISHES ON REBOUND IN THE HOUSING MARKET MORTGAGE INSURER LEARNS LESSON FROM THE 1980S AND KEEPS IT SIMPLE BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL MGIC'S GOT ITS MAGIC BACK IN THE 1950S MGIC INVESTMENT CORP ESSENTIALLY INVENTED THE PRIVATE HOME MORTGAGE INSURANCE BUSINESS AND THEN FLOURISHED AS THE INDUSTRY LEADER DURING AN ERA OF SOARING HOME OWNERSHIP THE CONCEPT OF PRIVATE MORTGAGE INSURANCE IS SIMPLE HOMEBUYERS WHO CAN'T MUSTER AT LEAST A 20 DOWN PAYMENT AND DON'T WANT THE HASSLE OF A GOVERNMENT GUARANTEE PROGRAM TYPICALLY ARE REQUIRED TO PAY FOR COVERAGE TO PROTECT THEIR LENDER AGAINST DEFAULT BUT IN THE MID1980S MORTGAGELOAN INSURERS LIKE MGIC INCURRED HUGE UNEXPECTED LOSSES AS SPECULATIVE REALESTATE EXCESSES AND HARD TIMES IN THE RUST BELT AND THE ENERGY SECTOR SPAWNED A BIG RUNUP IN HOMELOAN DEFAULTS PRIVATE MORTGAGE INSURERS HAD TO ANTE UP BILLIONS OF DOLLARS TO MAKE GOOD ON THOSE POLICIES THE BOOM TIMES ARE BACK HOWEVER AND THE MILWAUKEE INSURER IS NOW PROSPERING FROM STRONGLY POSITIVE ECONOMIC AND REGULATORY FORCES THE CURRENT LOW INTEREST RATES AND STABLE HOME PRICES HAVE COMBINED TO MAKE HOUSES MORE AFFORDABLE THAN THEY HAVE BEEN IN NEARLY TWO DECADES THAT HAS HELPED PROPEL MGIC'S PROFITS AND STOCK PRICE SHARPLY HIGHER NET INCOME JUMPED 36 LAST YEAR TO 1023 MILLION OR 348 A SHARE AND IT'S EXPECTED TO TOP 4 A SHARE THIS YEAR THE AMOUNT OF DIRECT INSURANCE MGIC HAS IN FORCE CLIMBED 16 LAST YEAR TO 712 BILLION AND A COMPANY OFFICIAL ASSERTS WE CAN EASILY GROW THAT TO 120 BILLION IN COMING YEARS AT YESTERDAY'S CLOSING PRICE OF 55375 ITS SHARE PRICE EVEN AFTER DROPPING BACK FROM THE RECORD LEVELS OF RECENT WEEKS IS UP 36 FROM WHERE IT STOOD AT THE END OF OCTOBER MGIC THE PARENT OF MORTGAGE GUARANTY INSURANCE CORP HAS PUT THE BULK OF ITS PROBLEMS FROM THE INDUSTRY'S DARK YEARS BEHIND IT IN 1985 MANAGEMENT OF THE COMPANY THEN A UNIT OF BALDWINUNITED CORP AND CROSSTOWN INSURER NORTHWESTERN MUTUAL LIFE INSURANCE CO BOUGHT ITS ASSETS FOR ABOUT 255 MILLION WITH NORTHWESTERN MUTUAL GETTING A 95 STAKE AS PART OF THAT BUYOUT THE NEW MGIC PACKAGED ALL ITS PRE1985 INSURANCE POLICIES AND LAID 80 OF THE RISK OFF TO REINSURERS BUT BECAUSE OF THE DISMAL LOSSES THAT ERUPTED SOON AFTER ITS 20 EXPOSURE COST THE COMPANY OVER 300 MILLION AN OFFICIAL CONCEDES THE DRAG FROM THE OLD BOOK STILL EXISTS ALTHOUGH ITS EFFECT ON EARNINGS IS RELATIVELY MINOR NOW AND GETS SMALLER EACH YEAR BY THE LATE 1980S MGIC HAD RETURNED TO PROFITABILITY AND NORTHWESTERN MUTUAL TOOK THE COMPANY PUBLIC IN AUGUST 1991 AT 24 A SHARE NORTHWESTERN THROUGH THE INITIAL AND A SUBSEQUENT OFFERING HAS TRIMMED ITS STAKE TO 23 BUT ALSO REAPED ABOUT 200 MILLION IN GAINS FROM THE SALE ANOTHER 250 MILLION IN POTENTIAL GAINS REMAINS ON ITS BOOK NORTHWESTERN MUTUAL SAYS TODAY MGIC IS A YOUNG COMPANY WITH AN OLD NAME CONTENDS WILLIAM H LACY ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER THE PRICE DISCOUNTING OF POLICIES AND LAX UNDERWRITING STANDARDS THAT PLAGUED MGIC IN THE 1980S ARE BEHIND IT HE SAYS MGIC LEARNED ONE GUIDING PRINCIPLE FROM ITS HUGE 1980S LOSSES MR LACY SAYS INSURE SHELTER THE COMPANY NOW WOULD RATHER INSURE A FIREMAN OR SCHOOLTEACHER IN COLUMBUS OHIO THAN SOMEONE WHO'S SPECULATING BUYING OVER THEIR HEAD HE EXPLAINS THE BEST MARKET FOR US IS A MODEST BORING MARKET WHERE HOUSING VALUES ARE STEADY OR SLOWLY APPRECIATING THAT'S A FAIR DESCRIPTION OF TODAY'S HOUSING MARKET WITH THE EXCEPTION OF TROUBLE SPOTS IN CALIFORNIA AND THE NORTHEAST WHERE THE ECONOMY HAS BEEN ESPECIALLY WEAK AS HOUSING PRICES HAVE BECOME MORE AFFORDABLE THERE'S BEEN A BIG UPTURN IN THE KIND OF LOWDOWNPAYMENT BORROWERS THAT MGIC SERVES THE RECENT MORTGAGEREFINANCING RUSH IS A DOUBLEEDGED SWORD FOR MGIC SAYS MR LACY WE LOSE SOME BUSINESS AS SOME REFINANCING BORROWERS FIND THEY'RE ABLE TO MAKE A BIG ENOUGH DOWNPAYMENT TO ELIMINATE THE NEED FOR MORTGAGELOAN INSURANCE BUT THE REFINANCING POLICIES THE COMPANY WRITES ARE BETTER RISKS HE NOTES OTHER FACTORS ARE HELPING MGIC'S BUSINESS GOVERNMENTINSURANCE PROVIDERS SUCH AS THE FEDERAL HOUSING ADMINISTRATION AND THE DEPARTMENT OF VETERANS AFFAIRS REPRESENT COMPETITION FOR THE PRIVATE MORTGAGE INSURERS LENDERS USUALLY GUIDE HOME BUYERS TO PRIVATE INSURERS AND SEND THOSE WITH THE SMALLEST DOWN PAYMENT OR WEAKER CREDIT RATINGS TO THE FHA OR VA BUT IN MID1991 THOSE FEDERAL AGENCIES RAISED THE PRICE OF THEIR MORTGAGELOAN POLICIES THUS MAKING THEIR LOANINSURANCE LESS ATTRACTIVE ALTERNATIVES FOR CONSUMERS WHILE SOME OF THE RESTRICTIVE FHA MEASURES HAVE BEEN ROLLED BACK RECENTLY MGIC'S COMPETITIVE EDGE IS STILL BETTER THAN IT WAS PROVIDING A FURTHER HELP TO MGIC MORTGAGE LENDERS ARE FINDING IT LESS ATTRACTIVE TO SELFINSURE LOANS BECAUSE OF TIGHTER FEDERAL RULES THAT GOVERN LENDERS' CAPITALIZATION UNDER THE PRACTICE KNOWN AS SELFINSURANCE LENDERS SOMETIMES BOOST THEIR PROFIT BY ADDING ON TO A BORROWER'S TAB THE AMOUNT THAT WOULD GO TO A MORTGAGE INSURER BUT ABSORBING THE RISK OF A DEFAULT THEMSELVES LAWMAKERS TIGHTENED THE CAPITALIZATION RULES IN REACTION TO THE SAVINGS AND LOAN DEBACLE OF THE LATE 1980S THE DECLINE OF SELFINSURANCE IS ALSO BEING HASTENED BY THE RISE OF MORTGAGE SECURITIZATION INCREASINGLY HOMEMORTGAGE LOAN ORIGINATORS SELL THEIR LOANS TO THE FEDERAL NATIONAL MORTGAGE ASSOCIATION OR THE FEDERAL HOME LOAN MORTGAGE CORP AS THOSE ASSOCIATIONS HAVE COME TO DOMINATE THE HOMEMORTGAGE LENDING FIELD THEIR REQUIREMENT THAT LOWDOWNPAYMENT LOANS BE COVERED BY MORTGAGE INSURANCE HAS SPURRED NEW BUSINESS FOR MGIC AND ITS COMPETITORS WITHIN THE MORTGAGEINSURANCE INDUSTRY MGIC HAS BEEN RUNNING A CLOSE SECOND IN RECENT YEARS BEHIND THE MORTGAGEINSURANCE ARM OF GENERAL ELECTRIC CO'S GENERAL ELECTRIC CAPITAL CORP IN 1992 MGIC'S SHARE OF THE PRIVATEINSURANCE MARKET WAS 27 WHILE GE CAPITAL'S UNIT HELD A 284 POSITION MGIC'S PROFITS HINGE ON ITS SUCCESS IN MAKING GOOD BETS ON BORROWERS' ABILITY TO KEEP UP MORTGAGE PAYMENTS CURRENT EARNINGS ARE GETTING A PUSH FROM ITS RELATIVELY SMALL EXPOSURE IN THE TROUBLED CALIFORNIA HOUSING MARKET IN LINE WITH ITS CAUTIOUS STANCE AND ITS PREDILECTION FOR INSURING MORTGAGES IN THE HEARTLAND THE COMPANY REINED IN ITS CALIFORNIA LENDING A COUPLE OF YEARS AGO WHEN DANGER SIGNS BEGAN APPEARING ASKED ABOUT SOME ANALYST CONCERNS THAT THE COMPANY MAY PERMANENTLY LOSE GROUND TO BOLDER RIVALS IN THE HUGE CALIFORNIA MARKET MR LACY SAYS SIMPLY IT'S A JUDGMENT YOU WRESTLE WITH 9303180111 930318 SOUTHERN CO PLANS TO BUY STAKE ATLANTA SOUTHERN CO SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE A 995 EQUITY POSITION IN FIRST PACIFIC NETWORKS INC A SUNNYVALE CALIF TELECOMMUNICATIONS COMPANY TERMS WERE NOT DISCLOSED ACCORDING TO THE AGREEMENT SOUTHERN THE PARENT FIRM OF FIVE ELECTRIC UTILITIES IN THE SOUTHEAST WOULD TEST FIRST PACIFIC'S ENERGYMANAGEMENT TECHNOLOGY IN SOUTHERN'S SERVICE AREA THE AGREEMENT IS SUBJECT TO APPROVAL BY FEDERAL AUTHORITIES AND THE BOARDS OF BOTH COMPANIES 9303180110 930318 PEPPERAND SALT HE REALLY MEANS I'M CHICKEN TO SPEED UP COMMERCE AND SAVE TIME PRICES THAT END IN NINETYNINE 9303180109 930318 BUSINESS BRIEF ANHEUSERBUSCH SAYS IT EXPECTS PROFIT IN FIRST QUARTER TO TRAIL EXPECTATIONS ST LOUIS ANHEUSERBUSCH COS SAID IT EXPECTS LOWER THAN ANTICIPATED FIRSTQUARTER EARNINGS DUE TO REDUCED SHIPPING REQUIREMENTS BAD WEATHER AND A LINGERING SOFT ECONOMY THE BREWER PROJECTED THAT PERSHARE EARNINGS FOR THE QUARTER WILL FALL ABOUT 7 TO AN INDICATED 69 CENTS A SHARE A YEAR EARLIER ANHEUSER HAD NET INCOME OF 224 MILLION OR 77 CENTS A SHARE ON SALES OF 262 BILLION IN PREVIOUS YEARS ANHEUSER DIDN'T HAVE THE CAPACITY TO MAKE ENOUGH BEER DURING THE SUMMER MONTHS TO MEET DEMAND SO IT WOULD STOCKPILE WHOLESALER BEER INVENTORIES EARLY IN THE YEAR THAT BOOSTED FIRSTQUARTER BEER SALES VOLUMES BUT LAST MONTH ANHEUSER WARNED WALL STREET THAT SALES VOLUME IN THIS YEAR'S FIRST QUARTER WOULD FALL SLIGHTLY THAT'S BECAUSE THE COMPANY IS PHASING IN A NEW BREWERY IN CATERSVILLE GA THAT GIVES IT EXTRA CAPACITY TO MAKE BEER DURING THE WARMER MONTHS AND ELIMINATES THE NEED TO BUILD INVENTORIES SO EARLY BUT ANHEUSER'S OUTLOOK FOR THE QUARTER HAS GROWN BLEAKER WITH THE BLIZZARD THAT STRUCK THE EAST COAST PRIOR TO ST PATRICK'S DAY A KEY TIME FOR BEER SALES SALES ALSO SUFFERED FROM HEAVY RAINS IN CALIFORNIA EARLIER THIS YEAR AS WELL AS THE CONTINUED ECONOMIC WEAKNESS IN KEY GEOGRAPHIC AREAS THE COMPANY SAID THOSE FACTORS ARE PUSHING SALES TO RETAILERS DOWN ABOUT 2 IN FEBRUARY THE COMPANY HAD PREDICTED THOSE SALES WOULD RISE MORE THAN 1 SALES TO WHOLESALERS WILL DECLINE ABOUT 7 DURING THE QUARTER ANHEUSER SAID THE COMPANY SAID IT STILL EXPECTS SALES TO WHOLESALERS TO GROW ABOUT 1 FOR THE FULL YEAR AND IT REMAINS COMMITTED TO ITS DOUBLEDIGIT EARNINGS GROWTH OBJECTIVE THE NEGATIVE FACTORS ARE LIKELY TO RESULT IN FLAT US BEER INDUSTRY VOLUMES THIS YEAR JERRY RITTER ANHEUSER'S CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER TOLD SECURITIES ANALYSTS IN FLORIDA YESTERDAY WHILE WEATHER IS THE LATEST DEPRESSANT MR RITTER SAID KEY MARKETS CONTINUE TO SHOW LITTLE SIGN OF ECONOMIC RECOVERY THEY INCLUDE NEW YORK NEW JERSEY PENNSYLVANIA AND CALIFORNIA MUCH OF NEW ENGLAND AND PARTS OF THE UPPER MIDWEST DESPITE THE NEARTERM PROBLEMS MR RITTER SAID ANHEUSER STILL EXPECTS SALES VOLUME IN THE SECOND HALF TO EXCEED THE YEAREARLIER LEVEL 9303180108 930318 WHO'S NEWS CAMPEAU TO QUIT DOMTAR BOARD MONTREAL DOMTAR INC SAID JEAN CAMPEAU WHO HAS BEEN ON LEAVE OF ABSENCE AS CHAIRMAN WON'T STAND FOR REELECTION AS A DIRECTOR AT THE FORESTPRODUCTS COMPANY'S ANNUAL MEETING IN APRIL MR CAMPEAU LEFT HIS POST LAST JUNE TO HEAD A GROUP CAMPAIGNING FOR QUEBEC SOVEREIGNTY DOMTAR 44OWNED BY TWO PROVINCIAL AGENCIES SAID MR CAMPEAU AGREED TO TERMINATE HIS CONTRACT WHICH WAS TO RUN THROUGH AUGUST 1995 TERMS OF THE SEVERANCE WEREN'T DISCLOSED BEFORE JOINING DOMTAR IN 1990 MR CAMPEAU WAS CHAIRMAN OF THE CAISSE DE DEPOT ET PLACEMENT DU QUEBEC THE PROVINCE'S PENSIONFUND AGENCY AND ONE OF DOMTAR'S PRINCIPAL SHAREHOLDERS 9303180107 930318 TECHNOLOGY DIGITAL AND NOVELL WILL MAKE VERSION OF NETWARE SOFTWARE PROVO UTAH DIGITAL EQUIPMENT CORP AND NOVELL INC SAID THEY WILL JOINTLY CREATE A VERSION OF THE NETWARE NETWORKING SOFTWARE FOR COMPUTERS BUILT AROUND DIGITAL'S ALPHA MICROPROCESSOR THE MOVE IS A BOOST FOR NOVELL WHICH IS ALREADY WORKING ON VERSIONS OF NETWARE FOR COMPETITIVE ADVANCED MICROPROCESSORS FROM SUN MICROSYSTEMS INC AND HEWLETTPACKARD CO NOVELL HAS MADE IT PLAIN THAT IT WANTS TO ADAPT NETWARE WHICH MAINLY RUNS ON COMPUTERS BUILT AROUND MICROPROCESSORS FROM INTEL CORP TO PROCESSORS FROM OTHER COMPANIES DIGITAL SAID IT BELIEVES THAT HAVING NETWARE RUN ON ITS ALPHA CHIP WILL INCREASE THE CHANCES OF ITS GAINING A WIDE FOLLOWING AMONG CUSTOMERS THE MAYNARD MASS COMPUTER COMPANY ALREADY IS WORKING WITH MICROSOFT CORP ONE OF NOVELL'S CHIEF RIVALS TO ADAPT THE FORTHCOMING HIGHENDING PROGRAM WINDOWS NT TO ITS ALPHA LINE 9303180106 930318 NEWHALL EXPECTS MINIMAL' PROFIT VALENCIA CALIF NEWHALL LAND & FARMING CO SAID IT ANTICIPATES MINIMAL EARNINGS FOR THE FIRST TWO QUARTERS OF 1993 DUE TO CALIFORNIA'S LINGERING RECESSION AND DAMAGE FROM RECENT STORMS THE REAL ESTATE DEVELOPER SAID IT HOPES MAJOR LAND SALES WILL RESULT IN STRONGER EARNINGS IN THE SECOND HALF OF 1993 FOR THE FIRST QUARTER OF 1992 NEWHALL HAD NET INCOME OF 96 MILLION OR 26 CENTS A PARTNERSHIP UNIT ON SALES OF 279 MILLION IN THE SECOND QUARTER THE COMPANY HAD NET INCOME OF 23 MILLION OR SIX CENTS A UNIT ON SALES OF 166 MILLION 9303180105 930318 WEDNESDAY'S MARKETS STOCKS DROP ON REPORT FOR INFLATION BUT BONDS ADVANCE AFTER EARLY DECLINE DOLLAR ENDS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES FELL AS INVESTORS TRIED TO ASSESS THE LATEST DATA ON INFLATION BUT BOND TRADERS APPARENTLY DECIDING INFLATION IS STILL LEASHED PUSHED BOND PRICES UP A LITTLE THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SLID 1621 POINTS TO 342674 AND STANDARD & POOR'S 500STOCK INDEX FELL 306 TO 44831 THE NASDAQ COMPOSITE INDEX TUMBLED 807 OR 12 TO 68740 THE LABOR DEPARTMENT REPORTED THAT CONSUMER PRICES ROSE 03 IN FEBRUARY IN LINE WITH EXPECTATIONS EXCLUDING FOOD AND ENERGY THE INCREASE WAS 05 SLIGHTLY HIGHER THAN THE ESTIMATES BOTH STOCK AND BOND PRICES INITIALLY SLUMPED BUT BONDS LATER RECOVERED ANALYSTS SAID RECENT BONDMARKET DECLINES HAD PREPARED BOND INVESTORS FOR THE INFLATION NEWS JOHN SHAUGHNESSY DIRECTOR OF RESEARCH AT ADVEST INC IN HARTFORD CONN SAID ONE REASON INFLATION REMAINS SUBDUED IS THAT CORPORATIONS ARE TRIMMING LABOR COSTS STILL HE SAID THE STOCK MARKET COULD BE HEADED FOR A DULL PERIOD THE INDUSTRIAL AVERAGE CONFINED TO A 50POINT RANGE AS INVESTORS AWAIT CLEARER SIGNALS ON INFLATION AND THE CLINTON ADMINISTRATION'S HEALTH CARE PROGRAM WITH INTEREST RATES LOW AND THE ECONOMY GROWING THE UNDERLYING FORCES DRIVING THE MARKET ARE VERY POSITIVE MR SHAUGHNESSY SAID BUT WE MAY DIE OF BOREDOM IN THE NEAR TERM PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SAID HEALTHCARE AND DRUG STOCKS WERE BATTERED AFTER THE WASHINGTON POST REPORTED THAT SHORTTERM PRICE CONTROLS WILL BE NEEDED TO CURB HEALTHCARE SPENDING HE SAID INVESTORS WERE SHIFTING TO ECONOMICALLY SENSITIVE STOCKS AND TO OILS WHICH ARE LIKELY TO BENEFIT FROM ANY INCREASES IN INFLATION BIOTECH STOCKS ALSO SANK ON WORRIES ABOUT THE HEALTHCARE PLAN CONTRIBUTING TO THE NASDAQ'S SHARP DECLINE ALSO PUSHING SMALLER STOCKS LOWER WAS A 375 SLIDE IN THE PRICE OF NETWORKING COMPANY NETWORTH WHICH SAID IT WOULD REPORT LOWERTHANEXPECTED EARNINGS NASDAQ HAD A TERRIBLE DAY SAID MR CANELO IT CONFIRMS THAT WE HAD AN IMPORTANT TOP IN NASDAQ IN EARLY FEBRUARY WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 001 TO 9789 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 237850000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1158 ISSUES FELL AND 736 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED LESS THAN 1/8 POINT TO YIELD 687 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16615 MARKS AND 11720 YEN COMPARED WITH 16640 MARKS AND 11700 YEN TUESDAY 9303180104 930318 UAW TO STOP PICKETING SOME CATERPILLAR DEALERS THE UNITED AUTO WORKERS UNION AGREED TO STOP PICKETING INDEPENDENT CATERPILLAR INC DEALERS LIMITING ONE OF THE MORE VISIBLE TACTICS THE UNION HAS EMPLOYED IN ITS CORPORATE CAMPAIGN AGAINST THE COMPANY THE PEORIA ILL CONSTRUCTIONEQUIPMENT COMPANY AND THE AUTO WORKERS HAVE BEEN LOCKED IN A BITTER AND PROTRACTED CONTRACT DISPUTE ALTHOUGH STRIKING WORKERS RETURNED TO THEIR JOBS ALMOST A YEAR AGO THE UAW HAS CONTINUED TO PRESS FOR BETTER CONTRACT TERMS IN FEBRUARY THE COMPANY AND SEVERAL INDEPENDENT DEALERS FILED A COMPLAINT WITH THE NATIONAL LABOR RELATIONS BOARD ALLEGING THE PICKETING OF DEALERS WAS ILLEGAL UNDER A SETTLEMENT REACHED YESTERDAY WITH THE NLRB THE UNION AGREED NOT TO PICKET INDEPENDENTLY OWNED AND OPERATED CATERPILLAR DEALERSHIPS CATERPILLAR SAID THAT THE SETTLEMENT SENDS A CLEAR MESSAGE THAT IT'S UNLAWFUL FOR THE UNION TO ATTEMPT TO INVOLVE NEUTRAL THIRDPARTY CAT DEALERSHIPS IN THE UAW'S DISPUTE WITH CATERPILLAR A UAW OFFICIAL SAID THE RESTRICTIONS THE UNION AGREED TO COVER ONLY DEALERSHIPS NOT OWNED OR OPERATED BY THE COMPANY AND THAT THE UNION IS STILL FREE TO PICKET ANY DEALERSHIP WHERE A CATERPILLAR OFFICIAL MAY BE VISITING FOR EXAMPLE 9303180103 930318 POLITICS & POLICY SPENDING ON MEDICAID JUMPED 25 IN FISCAL '92 WASHINGTON SPENDING ON MEDICAID JUMPED BY NEARLY 24 BILLION IN FISCAL 1992 AS THE NUMBER OF PEOPLE RECEIVING BENEFITS ROSE TO A RECORD 316 MILLION THE DEPARTMENT OF HEALTH AND HUMAN SERVICES REPORTED THE 25 RISE BROUGHT MEDICAID SPENDING TO 1182 BILLION IN FISCAL 1992 WHICH ENDED LAST SEPT 30 FROM 945 BILLION IN FISCAL 1991 DURING THAT YEAR THE NUMBER OF PEOPLE RECEIVING BENEFITS SWELLED BY 33 MILLION MEDICAID IS THE FEDERAL AND STATE HEALTH PROGRAM FOR POOR AND DISABLED PEOPLE THE HEALTH CARE FINANCING ADMINISTRATION WHICH RUNS MEDICAID ATTRIBUTED THE INCREASE IN THE PROGRAM'S COSTS AND BENEFICIARIES TO THE RECESSION AND CONGRESSIONAL EXPANSION OF ELIGIBILITY FOR PREGNANT WOMEN AND CHILDREN IT ALSO NOTED STATES' USE OF DONATION PROGRAMS AND HEALTHCARE PROVIDER TAXES TO BOOST FEDERAL MATCHING PAYMENTS THE FEDERAL GOVERNMENT MATCHES MEDICAID SPENDING BY STATES AT DIFFERENT RATES DEPENDING ON EACH STATE'S PERCAPITA INCOME IN 1992 THE FEDERAL SHARE OF MEDICAID SPENDING ROSE 29 TO 678 BILLION FROM 525 BILLION HHS SAID DESPITE THE BIG EXPANSION OF MEDICAID MANY PEOPLE LIVING UNDER THE FEDERAL POVERTY LINE STILL WEREN'T ELIGIBLE FOR THE PROGRAM'S BENEFITS 9303180101 930318 SOME CONGLOMERATES MIGHT PROVE DIFFICULT TO GET THE HANDCUFFS ON BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL AS IF COMPANIES DIDN'T HAVE ENOUGH TO WORRY ABOUT FROM CURRENT LAWYERS SOME FUTURE ATTORNEYS ARE INTENT ON CREATING A WHOLE NEW SET OF CONCERNS A GROUP OF STUDENTS AT THE BUFFALO SCHOOL OF LAW PART OF NEW YORK'S STATE UNIVERSITY SYSTEM RECOMMENDED LAST MONTH THAT STATES INSTITUTE THE DEATH PENALTY FOR CORPORATIONS THAT COMMIT CERTAIN WRONGFUL ACTS UNDER A PROPOSED CRIMINAL CODE DRAFTED BY THE LAW STUDENTS FOR CORPORATE ACCOUNTABILITY THE MEANS OF EXECUTION WOULD BE CHARTER REVOCATION AND ASSET SEIZURE CAPITAL CRIMES WOULD INCLUDE EMITTING TOXIC SUBSTANCES OR MAKING DANGEROUS PRODUCTS THAT CAUSE A PERSON'S DEATH JOSEPH BELLUCK A SECONDYEAR LAW STUDENT AND LEADER OF CORPORATE ACCOUNTABILITY ARGUES THAT THE USUAL CIVIL DAMAGE AWARDS IN SUCH CASES AREN'T PAINFUL ENOUGH TO DETER COMPANIES FROM REPEATING THEIR BEHAVIOR THE THREAT OF THE DEATH PENALTY CAN SCARE CORPORATIONS MR BELLUCK SAYS IT CAN MAKE SHAREHOLDERS BECOME MORE AWARE OF THEIR COMPANIES' ACTIONS HE ALSO POINTS OUT THAT PROVISIONS ALREADY EXIST FOR STATES TO REVOKE OPERATING CHARTERS UNDER EXTREME CIRCUMSTANCES AND THAT ANTIRACKETEERING LAWS ALLOW PROSECUTORS TO SEIZE COMPANY ASSETS IN CASES INVOLVING SUCH CRIMES AS MONEY LAUNDERING AND FRAUD THE BUFFALO STUDENTS SIMPLY WANT TO TAKE THE CONCEPT FURTHER AND INCLUDE MATTERS CURRENTLY HANDLED MOSTLY THROUGH CIVIL PERSONALINJURY LITIGATION THE IDEA HAS ATTRACTED SOME ADMIRING ATTENTION FROM MEMBERS OF THE FACULTY WE'RE DELIGHTED WHENEVER STUDENTS ORGANIZE THEMSELVES CARE ENOUGH TO GET SPEAKERS TO COME AND TALK AT SEMINARS AND DO PROJECTS WHATEVER THEIR POLITICS SAYS THE LAW SCHOOL'S DEAN BARRY B BOYER BUT OFF CAMPUS SECURITIES LAWYER HARVEY PITT SAYS THAT THE PROPOSAL IS UNREALISTIC AND THAT INNOCENT WORKERS SHAREHOLDERS AND PENSIONERS WOULD BE HURT MOST IF A COMPANY WAS STRIPPED OF ITS ASSETS AND CHARTER IT STRIKES ME THAT THIS IS THE KIND OF IDEA THAT COULD ONLY EMANATE FROM ACADEMIA HE SAYS MR BELLUCK COUNTERS THAT EXECUTED CORPORATIONS COULD BE RUN BY TRUSTEES AND COULD CONTINUE THEIR PRODUCTIVE WORK AND THOUGH HE PLANS TO WORK IN GOVERNMENT AFTER GRADUATION SO HE CAN INFLUENCE PUBLIC POLICY MR BELLUCK INSISTS THAT HIS STUDENT GROUP ISN'T ANTIBUSINESS A LOT OF THE VICTIMS OF CORPORATE CRIME ARE CORPORATIONS THEMSELVES HE SAYS 9303180100 930318 MEDICAL TECHNOLOGY SHARES CLEARWATER FLA MEDICAL TECHNOLOGY SYSTEMS INC SAID A GROUP INCLUDING FIDELITY MANAGEMENT & RESEARCH CO OF BOSTON RAISED ITS STAKE IN MEDICAL TECHNOLOGY TO 1051 OF THE COMMON STOCK OUTSTANDING OR 409600 SHARES FROM 43 OR 168000 SHARES MEDICAL TECHNOLOGY SUPPLIES AUTOMATED EQUIPMENT FOR PACKAGING TABLETS AND CAPSULES THE COMPANY CURRENTLY HAS 39 MILLION SHARES OUTSTANDING 9303180098 930318 MOODY'S RAISES RATINGS ON LONGTERM DEBT OF CONTINENTAL BANK NEW YORK MOODY'S INVESTORS SERVICE INC RAISED LONGTERM DEBT RATINGS OF CONTINENTAL BANK CORP AS WELL AS RATINGS ON DEPOSITS OF ITS CONTINENTAL BANK UNIT THE RATINGS AGENCY NOTED THE BANKING COMPANY'S IMPROVED REVENUE TREND DRIVEN BY FEEBASED INCOME SOURCES AS WELL AS PROGRESS IN IMPROVING CAPITAL LEVELS APPROXIMATELY 14 BILLION OF SECURITIES ARE AFFECTED SENIOR DEBT FOR THE PARENT WAS RAISED TO BAA3 FROM BA2 HOWEVER MOODY'S SAID THE LOAN PORTFOLIO CONTAINS A RELATIVELY HIGH PROPORTION OF COMMERCIAL REAL ESTATE AND A HIGH LEVEL OF NONPERFORMING ASSETS THE CHICAGO COMPANY HAD ASSETS OF 225 BILLION AT THE END OF 1992 9303180097 930318 TECHNOLOGY US WILDLIFE DECISION ON GNATCATCHER IS DELAYED A WALL STREET JOURNAL NEWS ROUNDUP THE INTERIOR DEPARTMENT PUT OFF A DECISION ON THE CALIFORNIA GNATCATCHER A TINY SONGBIRD THAT HAS BECOME A SYMBOL OF THE BITTER CONFLICT BETWEEN WILDLIFE PROTECTION AND ECONOMIC GROWTH THE GNATCATCHER CASE IS CONSIDERED AN EARLY TEST OF THE CLINTON ADMINISTRATION'S STRATEGIES FOR TRYING TO COPE WITH THE BATTLES OVER CONSERVATION AND JOBS THE BIRD LIVES IN SOCALLED COASTAL SAGE SCRUBLANDS ALONG THE SOUTHERN CALIFORNIA COAST IT IS IN TROUBLE BECAUSE 90 OF ITS HABITAT HAS BEEN PLOWED UNDER FOR HOUSING TRACTS IN THE PAST FEW DECADES WHAT COASTAL SAGE REMAINS IS CONSIDERED PRIME REAL ESTATE WORTH MANY BILLIONS OF DOLLARS AND IS OWNED BY SOME OF THE NATION'S BIGGEST HOUSING DEVELOPERS THE FIGHT OVER THE GNATCATCHER HAS BEEN GOING ON FOR MORE THAN TWO YEARS BUT THE DEPARTMENT FACED A DEADLINE YESTERDAY FOR DETERMINING WHETHER TO FORMALLY LIST THE GNATCATCHER AS THREATENED OR ENDANGERED UNDER THE ENDANGERED SPECIES ACT HOWEVER THE AGENCY EXTENDED THE DEADLINE INDEFINITELY A SPOKESMAN SAID INTERIOR SECRETARY BRUCE BABBITT INTENDS TO EXTEND PROTECTION TO THE BIRD BUT WANTS MORE TIME TO FULLY ANALYZE HOW BEST TO DO THAT THE SPOKESMAN SAID MR BABBITT HASN'T INDICATED HOW MUCH TIME THAT WILL TAKE 9303180096 930318 FINANCING BUSINESS PHILADELPHIA SUBURBAN CORP PHILADELPHIA SUBURBAN CORP BRYN MAWR PA SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A PUBLIC OFFERING OF AS MANY AS 11 MILLION COMMON SHARES THE HOLDING COMPANY WHOSE MAIN UNIT IS PHILADELPHIA SUBURBAN WATER CO SAID IT WILL USE THE PROCEEDS TO LOWER DEBT INCREASE INFRASTRUCTURE INVESTMENT AND FOR OTHER PURPOSES THE OFFERING INCLUDES AN OVERALLOTMENT OPTION OF 100000 SHARES FOR UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO 9303180095 930318 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO DOCTORS ARE COOL TO CREDIT CARDS TOUTED AS AN RX TO BILLING DIFFICULTIES VISA AND MASTERCARD AS PART OF A DRIVE INTO THE HEALTHCARE ARENA TRY TO PERSUADE PHYSICIANS TO ACCEPT PAYMENTS VIA PLASTIC BUT THEY'RE FINDING IT SLOW GOING ABOUT 20 OF DOCTOR'S OFFICES ACCEPT PLASTIC VS 90 FOR HOSPITALS AND 60 FOR DENTISTS PATIENTS AREN'T INTERESTED SAYS MALCOLM DULOCK A GEORGIA DOCTOR WHY PAY RIGHT AWAY HE ASKS WHEN A PATIENT CAN FILE AN INSURANCE CLAIM AND DELAY BEING BILLED FOR 30 DAYS CARD PROVIDERS HOWEVER ARGUE THAT MORE DOCTORS WILL BE FORCED TO SEEK PAYMENT UP FRONT TO CURB COLLECTION WOES AS PATIENTS' OUTOFPOCKET SHARE OF BILLS GROWS CARDS WILL MAKE THE SHIFT MORE PALATABLE TO PATIENTS THEY SAY BUT THE SPREAD OF HEALTHMAINTENANCE PLANS CAN STYMIE THIS SCENARIO GARY KRIEGER A CALIFORNIA PEDIATRICIAN STOPPED TAKING CARDS SIX MONTHS AGO BECAUSE MORE OF HIS PATIENTS ARE UNDER PREPAID PROGRAMS CARD USE HE SAYS DROPPED TO TWO SLIPS EVERY TWO WEEKS MEANWHILE BANK FEES ROSE BECAUSE CARD VOLUME FELL STORMS ARE ROILING THE DEBATE OVER BEACH RESTORATION THE TWIN STORMS THAT SCARRED THE EAST COAST THIS WINTER UNDERSCORE WIDESPREAD EROSION OF BEACHES AND RAISE QUESTIONS ABOUT THE EFFICACY OF EFFORTS TO SHORE THEM UP THESE STORMS ARE A WAKEUP CALL WE HAVE TO LOOK AT THESE PROJECTS A LOT MORE CRITICALLY SAYS STEPHEN LEATHERMAN A UNIVERSITY OF MARYLAND COASTAL EXPERT HE SAYS 8 BILLION HAS GONE INTO REBUILDING BEACHES OVER THE LAST TWO DECADES BUT OTHERS CONTEND THE HEAVY FLOODING SHOWS THE NEED FOR BOLSTERING BEACHES BERNARD MOORE A NEW JERSEY ENVIRONMENTAL OFFICIAL CREDITS A RECENT 39 MILLION BEACH PROJECT FOR AVERTING PROPERTY DAMAGE IN OCEAN CITY THIS WINTER TWO STORMS IN 1991 AND 1992 CAUSED 22 MILLION IN DAMAGES THE STATE HOWEVER NEEDS TO SPEND 3 MILLION TO AGAIN FIX THE BEACH THE ARMY CORPS OF ENGINEERS IS ABOUT TO START ON A 200 MILLION PROJECT TO RESTORE 12 MILES OF NEW JERSEY SHORELINE THE FIRST PHASE OF A 1 BILLION PLAN THAT WILL COVER 33 MILES OF COASTLINE TWOTHIRDS OF THE COST WILL BE FEDERALLY FUNDED ALTERNATIVE DRIVES HOPE TO GAIN GROUND IN THE WAKE OF UNITED WAY'S WOES MANY MORE NONUNITED WAY CAMPAIGNS GET A BETTER HEARING IN THE WORKPLACE FOLLOWING LAST YEAR'S SPENDING SCANDAL AT UNITED WAY OF AMERICA SAYS THOMAS HEINE HEAD OF THE COMBINED HEALTH APPEAL OF WISCONSIN BUT HE ADDS THE STATUS QUO HASN'T CHANGED THAT MUCH KERMIT EADY PRESIDENT OF THE BLACK UNITED FUND OF NEW YORK ALSO MADE SOME INROADS AFTER THE SCANDAL BUT MR EADY ADDS THE UNITED WAY IS CORPORATE AMERICA'S BABY' AND THEY ARE GOING TO LIVE OR DIE BY IT ALL AGREE DONORS WANT MORE CHOICE MR HEINE NOTES THAT AS SMALLER COMPANIES GROW IN PROMINENCE AND HIRE MORE MINORITIES THEY WILL INCREASINGLY USE ALTERNATIVE DRIVES THAT FUND LESSMAINSTREAM AGENCIES LOCAL UNITED WAYS HAVE BEEN ADDING CHOICES TOO SUCH AS LETTING DONORS TARGET GIFTS TO NONAFFILIATED AGENCIES ROBERT BOTHWELL HEAD OF THE NATIONAL COMMITTEE FOR RESPONSIVE PHILANTHROPY SAYS ALTERNATIVE GROUPS ARE BULLISH ABOUT 1992 REVENUE GAINS BUT CAN'T YET PREDICT HOW MANY NEW COMPANIES JOINED WITH SOME 71 OF COMPARABLE LOCAL UNITED WAYS COUNTED THE 199293 CAMPAIGN IS DOWN 33 FROM THE 199192 LEVEL A DEMING EVENING OF LITURGICAL MUSIC NOT LECTURES IS PLANNED FOR APRIL 3 THREE LITURGICAL WORKS BY MANAGEMENT GURU W EDWARDS DEMING AND HIS VERSION OF THE STARSPANGLED BANNER WILL BE PERFORMED BY THE WASHINGTON CIVIC SYMPHONY AND OTHERS UNDER A GRANT FROM FORD MOTOR CO CAN YOU SPARE A BIRTH CERTIFICATE ASK SOME NEW JERSEY HOSPITALS AS THEY TAP OTHER TOWNS FOR EMERGENCY RATIONS OF THE FORMS OR FACE A BACKLOG OF UNREGISTERED BABIES THE HEALTH DEPARTMENT WHICH GIVES OUT THE FORMS SAYS A DELAY IN AWARDING THE PRINTING JOB CAUSED A SHORTAGE DELIVERIES OF FORMS THAT IS ARE DUE THIS WEEK GOOD FOR US THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY TRUMPETS SHIPMENTS TO TAIWAN OF SUBWAY CARS MADE AT ITS YONKERS NY INDUSTRIAL PARK THEY ARE THE FIRST USMADE SUBWAY CARS TO BE EXPORTED SAYS A NEWSLETTER THE MANUFACTURER A PARTNERSHIP BETWEEN UNITS OF JAPANESE COMPANIES NISSHO IWAI AND KAWASAKI THE ADR SHEDS ITS ESOTERIC IMAGE AS THE SECURITY SPREADS AND TRADING SURGES THE MARKET FOR AMERICAN DEPOSITARY RECEIPTS BANKISSUED CERTIFICATES THAT REPRESENT A FOREIGN COMPANY'S SHARES OR DEBT GETS A BOOST FROM AMERICANS' DESIRE FOR AN EASIER WAY TO INVEST IN FOREIGN STOCKS ALSO ADRS GIVE FOREIGN FIRMS A MEANS OF RAISING THEIR US PROFILE AND TAPPING US CAPITAL LAST YEAR 23 ADR PUBLIC ISSUES AND 25 PRIVATE PLACEMENTS RAISED 9 BILLION UP 32 SAYS THE BANK OF NEW YORK A DEPOSITARY I'D BE SURPRISED IF WE DON'T SEE SIMILAR GROWTH IN 1993 SAYS MARK COLER OF THE ADR REPORT MOST ADRS STILL TRADE ON THE PINK SHEETS BUT TRADING IN THE 215 ADRS LISTED ON EXCHANGES OR WITH NASDAQ ROSE 33 TO 1249 BILLION LAST YEAR SAYS BANK OF NEW YORK BRITISH AUSTRALIAN AND JAPANESE ISSUES MAKE UP MUCH OF THE 1000 OR SO EXISTING ADRS BUT MORE NEW ONES HAIL FROM LATIN AMERICA AND OTHER ASIAN NATIONS ITALY'S LUXOTTICA GROUP AN ADR COMPANY PLANS TO HOLD ITS ANNUAL MEETING IN APRIL AT THE NEW YORK STOCK EXCHANGE BRIEFS JAPAN'S TAKENAKA CORP DESIGNS A FIREFIGHTING ROBOT THAT DOES WINDOWS DURING NONEMERGENCIES RALIN MEDICAL INC GETS A US PATENT FOR A WRISTWATCHSIZE HEART MONITOR FOR RECORDING ARRHYTHMIA 9303180094 930318 ECONOMY NAVEL BATTLE POSES THREAT TO SUNKIST RAISING PROSPECT OF LOWER RETAIL PRICES BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL THE OPEC OF THE CITRUS INDUSTRY IS ON THE VERGE OF BREAKING UP AND THE US CONSUMER MAY EVENTUALLY BENEFIT A MESSY BOARDROOM FIGHT AT SUNKIST GROWERS INC SHERMAN OAKS CALIF IS LENDING CREDENCE TO PREVIOUS CHARGES THAT THE COOPERATIVE'S MEMBERS FREQUENTLY EXCEEDED SALES QUOTAS SET BY THE FEDERAL GOVERNMENT AND REAPED AS MUCH AS AN ESTIMATED 60 MILLION IN WINDFALL PROFITS FROM PRICES THAT WERE KEPT ARTIFICIALLY HIGH BY THE QUOTAS A SUNKIST DIRECTOR HAS CHARGED A COVERUP OF THE ALLEGED VIOLATIONS AND MOVED TO BLOCK AN ATTEMPT TO GET INNOCENT MEMBERS TO PAY FOR THE SINS OF THE ACCUSED CHEATERS SOME MEMBERS ARE PULLING OUT IN DISGUST MEANWHILE PARTLY BECAUSE OF THE ABUSES THE US HAS CANCELED QUOTAS ON NAVEL ORANGES AND LEMONS GROWN IN CALIFORNIA AND ARIZONA SUPPLIES OF THE FRUIT ARE PILING UP AND WHOLESALE PRICES HAVE PLUNGED NEARLY 45 ALTHOUGH SO FAR CONSUMERS HAVEN'T BENEFITED MUCH THE EXCESS PROFITS ARE APPARENTLY GOING TO GROCERY CHAINS BUT COMPETITION AMONG THE CHAINS COULD IN TIME PUSH THE SAVINGS THROUGH TO CONSUMERS THE DISARRAY DEMONSTRATES THE BUILTIN FLAWS OF CARTELS BUTTRESSED BY LONGSTANDING AGRICULTURE DEPARTMENT RULES TO STABILIZE PRICES AND SUPPLY UNDER SOCALLED MARKETING ORDERS SUNKIST PACKERMEMBERS WHO ARE PAID A FLAT RATE PER CARTON SHIPPED HAVE THE SAME INCENTIVE TO CHEAT ON MARKETINGORDER QUOTAS AS DO MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES MORE VOLUME MEANS HIGHER PROFITS MORE THAN 42 MARKETING ORDERS COVER THE SALE OF VARIOUS FRUITS AND NUTS CITRUS IS THE MOST VALUABLE AND CONTROVERSIAL OF THE CROPS ALTHOUGH THE GOVERNMENT IS INVESTIGATING SIMILAR ABUSES IN ALMONDS NECTARINES AND PEACHES SEVERAL DOZEN CITRUS PACKERS HAVE BEEN ACCUSED IN FEDERAL COURT OF REPEATEDLY EXCEEDING QUOTAS MANY ARE BIG SUNKIST PACKING HOUSES OWNED BY OR AFFILIATED WITH SUNKIST DIRECTORS SUCH AS STARK PACKING CORP BAKER BROS SATICOY LEMON ASSOCIATION BAIRDNEECE PACKING CORP KLINK CITRUS ASSOCIATION AND OXNARD LEMON CO STARK PACKING FOR EXAMPLE AND ITS OWNER DONALD B BRAD STARK A SUNKIST BOARD VICE CHAIRMAN STANDS ACCUSED OF 61 FALSE FILINGS BASED ON ANALYSIS OF A SMALL PORTION OF ITS SHIPMENTS ASKED IF THE CHARGES ARE TRUE MR STARK SAYS YOU THINK I'D CONFESS TO YOU LET'S PUT IT THIS WAY I HAVEN'T BEEN PROVEN GUILTY SOME CASES NAME SUNKIST ITSELF CHARGING THAT IT HELPED CERTAIN MEMBERS BOOK ORDERS IN EXCESS OF THEIR QUOTAS AND CONCEAL THE OVERSHIPMENTS BY PUTTING INACCURATE DATES ON INVOICES THE CASES FILED IN 1988 AND 1989 IN FRESNO CALIF FEDERAL COURT BY A NONSUNKIST GROWER SEQUOIA ORANGE CO WHICH THE GOVERNMENT ALSO ACCUSES OF CHEATING ARE IN DISCOVERY NOW THOSE COVERUP ALLEGATIONS HAVE BEEN SUPPORTED BY A SUNKIST DIRECTOR BERNE EVANS ONE OF THE STATE'S BIGGEST GROWERS ALLEGES THAT SUNKIST MANAGEMENT KNEW ABOUT AND CONDONED QUOTA ABUSES BY CERTAIN MEMBERS INCLUDING SOME WITH TIES TO FELLOW DIRECTORS THAT CHARGE IS CONTAINED IN A LAWSUIT MR EVANS FILED LAST MONTH AGAINST SOME SUNKIST MANAGERS AND DIRECTORS IN LOS ANGELES SUPERIOR COURT ALLEGING BREACH OF FIDUCIARY DUTY AMONG OTHER THINGS IF MR EVANS'S ALLEGATIONS ARE TRUE THEN SUNKIST MAY NOT ONLY HAVE BETRAYED MOST OF ITS 6500 MEMBERS BUT ALSO HELPED TORPEDO THE QUOTAS WHICH FOR DECADES HAD GUARANTEED PROFITABILITY FOR PRODUCERS OF LEMONS AND NAVEL OR EATING ORANGES JUICE ORANGES MOST OF WHICH ARE GROWN IN FLORIDA ARE NO LONGER COVERED BY QUOTAS SUNKIST THE BRANDNAME GIANT OF THE CITRUS INDUSTRY WITH ANNUAL REVENUE OF 1 BILLION REPRESENTS ABOUT 65 OF CALIFORNIA AND ARIZONA PRODUCERS AND IS THE LOUDEST ADVOCATE OF QUOTAS THE FALLOUT FROM THE LAWSUIT COULD INCLUDE MASS MEMBERSHIP DEFECTIONS WEAKENING SUNKIST AND INTENSIFYING TURMOIL WITHIN THE NATION'S 5 BILLION CITRUS INDUSTRY TO STAVE OFF POTENTIAL DISASTER SUNKIST TRIED TO MUZZLE MR EVANS ACCORDING TO HIS COURT DOCUMENTS FIRST HE SAYS THEY BEGAN A CAMPAIGN TO EXPEL HIM FROM THE COOPERATIVE THEN THEY ALLEGEDLY DIVERTED 100000 IN ORDERS IN ONE WEEK ALONE FROM HIS GROVES LAST WEEK A JUDGE TOLD SUNKIST THAT IT MAY NOT OUST MR EVANS UNTIL HIS CASE IS TRIED MR EVANS REFERRED QUESTIONS ABOUT THE COMPLAINT TO HIS ATTORNEYS AT ALSCHULER GROSSMAN & PINES LOS ANGELES THEY PROVIDED THE LEGAL FILINGS SUNKIST MANAGEMENT DECLINES TO DISCUSS THE MATTER BUT MR STARK THE VICE CHAIRMAN SAYS I FIND IT REAL HARD TO AGREE WITH MOST OF WHAT BERNE EVANS SAYS HE'S VINDICTIVE AND HE'S HAVING A VERY BAD SEASON WHATEVER THE OUTCOME THE CASE REFLECTS A DEEPENING RIFT WITHIN THE COOPERATIVE BETWEEN THOSE WHO PROFIT PRIMARILY BY GROWING CITRUS AND THOSE WHO MAINLY PICK PACK AND SHIP THE FRUIT OUT OF THE MARKET PRICE GROWERS PAY PACKERS A FIXED AMOUNT FOR EVERY CARTON SHIPPED AND COLLECT WHATEVER IS LEFT OVER THUS GROWERS LIKE HIGH STABLE PRICES WHILE PACKERS PREFER HIGH VOLUME TODAY'S LOW PRICES AND SURGING VOLUMES CAUSED BY THE REMOVAL OF QUOTAS ARE SQUEEZING GROWER'S MARGINS AND ENRICHING PACKERS MOST CALIFORNIA CITRUS GROWERS IN SUNKIST OR INDEPENDENT ARE DISMAYED BY THE LOSS OF QUOTAS WHICH THEY SAY ARE NECESSARY TO ENSURE A RELIABLE SUPPLY OF HIGHQUALITY FRUIT SAYS FREDDY LOBUE OF INDEPENDENT PRODUCER LOBUE BROTHERS WE DIDN'T BREAK A SINGLE LAW AND ACTED IN GOOD FAITH AND YET NOW WE ARE SUFFERING SOME GROWERS ARE SO UPSET BY THE COOPERATIVE'S POLICIES THAT THEY ARE QUITTING GEORGE RODRIGUEZ WHO OWNS 400 ACRES IN ORANGE COVE CALIF SAYS HE NOW SELLS MOST OF HIS CROP THROUGH INDEPENDENT PACKERS AND HAS BEEN LABELED A RENEGADE AND A TROUBLEMAKER BY SUNKIST BUT MR RODRIGUEZ SAYS SUNKIST SHOULD BE WORRIED WORD OF MOUTH GOES AROUND HE SAYS HE KNOWS 10 GROWERS WHO HAVE PULLED OUT OF SUNKIST ALREADY THE ROOT OF THE PROBLEM ACCORDING TO MR EVANS IS THAT PACKERS NOW DOMINATE SUNKIST'S 28MEMBER BOARD AT THE EXPENSE OF GROWERS A BOARD DECISION ON JAN 20 TO TRY TO SETTLE THE QUOTAABUSE LITIGATION IS AN EGREGIOUS EXAMPLE HE ALLEGES POTENTIALLY SADDLING GROWERS WITH THE COSTS OF THE PACKERS' ABUSES WHAT'S WORSE HE CHARGES A MAJORITY OF THE DIRECTORS ARE AFFILIATED WITH THE NAMED DEFENDANTS AND SUNKIST'S PRESIDENT RUSSELL HANLIN HAS FALSELY DENIED THE ASSOCIATION'S KNOWLEDGE OF VIOLATIONS OR ANY LIABILITY MR HANLIN WON'T COMMENT WHATEVER SUNKIST DOES THE CITRUS QUOTAS MAY BE DOOMED CRITICS LED BY SEQUOIA'S ATTORNEY MR MOODY AN ADVOCATE OF LIBERTARIAN CAUSES SAY QUOTAS ARE A RELIC OF ANOTHER ERA AND SUSTAIN INEFFICIENT PRODUCERS NOW THAT THE GOVERNMENT HAS REMOVED ITS HANDCUFFS ON THE INDUSTRY THE SUNKIST CARTEL WILL FALL APART LIKE WITH THE AIRLINES A DECADE AGO MR MOODY SAYS BUT DEREGULATION IS ONLY PART OF SEQUOIA'S AGENDA ITS QUOTAABUSE LITIGATION AGAINST OTHER GROWERS MAY HELP IT GET OUT FROM UNDER SIMILAR CHARGES AGAINST ITSELF AND 37 MILLION IN POTENTIAL FINES UNDER FEDERAL LAW IT IS ENTITLED TO 30 OF ANY RECOVERIES IN THOSE ACTIONS WHICH SHOULD MORE THAN COVER ITS FINES AND LEGAL COSTS MR MOODY NOTES 9303180093 930318 ENTERPRISE FIRMS FIND WAYS TO GROW WITHOUT EXPANDING STAFFS BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL SMALL COMPANIES ARE EXPANDING AGAIN AND MANY ARE DOING IT WITHOUT ADDING WORKERS SMALL BUSINESS HAS BEEN A KEY PRODUCER OF NEW JOBS IN RECENT YEARS BUT HIRING NEW PERMANENT EMPLOYEES IS OFTEN THE BIGGEST COST OF A BUSINESS EXPANSION AND MANY OWNERS WHO DOUBT THE RECOVERY'S STRENGTH ARE AFRAID TO INCREASE OVERHEAD OTHERS PINCHED BY TIGHT LENDING CONDITIONS AREN'T JUST UNWILLING TO RATCHET UP EXPENSES THEY'RE UNABLE TO SAYS STEVEN HOCHBERG PRESIDENT OF ASCENT GROUP INC A TURNAROUNDMANAGEMENT CONSULTING FIRM IN NEW YORK INSTEAD OF HIRING THEIR OWN EMPLOYEES THESE COMPANIES HAVE FOUND THAT THEY CAN FARM OUT FUNCTIONS TO THIRD PARTIES JOIN FORCES WITH LARGER CONCERNS ENLIST TEMPORARY HELP AND DELAY PAYMENTS TO SUPPLIERS THERE ARE A LOT OF VERY ENTREPRENEURIAL PEOPLE OUT THERE AND THEY'RE FINDING WAYS TO GROW SAYS BOB STARZYK A CONSULTANT IN THE ATLANTA OFFICE OF ARTHUR ANDERSEN & CO EFFORTS TO INCREASE SALES PER EMPLOYEE APPEAR TO BE WIDESPREAD MORE THAN TWOTHIRDS OF SMALLBUSINESS OWNERS SAY THEY IMPROVED THEIR COMPANY'S PRODUCTIVITY DURING THE PAST 12 MONTHS ACCORDING TO A NOVEMBER SURVEY OF 100 COMPANIES BY ARTHUR ANDERSEN'S ENTERPRISE GROUP AND NATIONAL SMALL BUSINESS UNITED ARTHUR ANDERSEN PARTNER MILTON SCOTT EXPECTS SUCH MEASURES TO ALLOW SMALL COMPANIES TO PUT OFF SIGNIFICANT HIRING FOR AT LEAST SIX MONTHS DERCO INDUSTRIES INC A MILWAUKEE AIRCRAFTPARTS DISTRIBUTOR WITH 110 WORKERS SAYS IT HAS GOTTEN MORE EFFICIENT OVER THE PAST TWO YEARS BY AUTOMATING AND RESTRUCTURING ITS OPERATIONS OUR GOAL WAS TO GET HIGHER VOLUME WITH THE SAME NUMBER OF PEOPLE SAYS MAX DERMOND A DERCO PARTNER AND VICE PRESIDENT TO SPEED COMMUNICATIONS DERCO INSTALLED A COMPUTER SYSTEM THAT SENDS ELECTRONIC MEMOS TO EMPLOYEES FAXES TO CUSTOMERS AND NOTICES TO SUPPLIERS THAT MISS DEADLINES THE COMPANY INCREASED TO EIGHT THE NUMBER OF MANAGERS WHO CAN APPROVE BIDS WHEN ONLY TWO PEOPLE HAD SUCH AUTHORITY MR DERMOND SAYS IT BOGGED DOWN THE WHOLE PROCESS THE MEASURES PAID OFF WHILE DERCO'S ANNUAL SALES SINCE 1990 HAVE RISEN 40 TO 42 MILLION LAST YEAR TOTAL EMPLOYMENT HASN'T CHANGED MR DERMOND SAYS HITECH MANUFACTURING CO IS RELYING ON TEMPORARY PERSONNEL TO FUEL ITS EXPANSION THE LONGMONT COLO COMPANY WHICH ASSEMBLES PRINTEDCIRCUIT BOARDS USED IN ELECTRONIC COMPONENTS EXPECTS 1993 SALES TO TRIPLE FROM LAST YEAR'S LEVEL TO 15 MILLION IT HAS HIRED MORE THAN 100 PEOPLE SUPPLIED BY WESTERN TEMPORARY SERVICES INC A WALNUT CREEK CALIF CONCERN OVER THE PAST YEAR WESTERN PERMITS CUSTOMERS TO PAY FOR ITS SERVICES 30 DAYS AFTER THE TEMPORARY WORKERS START THAT GIVES HITECH AN EXTRA MONTHLY POOL OF 50000 TO FINANCE GROWTH EVEN THOUGH TURNOVER AMONG TEMPORARY WORKERS IS HIGHER THAN AMONG FULLTIME EMPLOYEES THE ARRANGEMENT GAVE US SOME BREATHING ROOM SAYS EDWARD JOHNSON HITECH'S FOUNDER AND PRESIDENT WITHOUT IT HE ADDS I'D HAVE HAD TO SLOW DOWN THE COMPANY'S GROWTH JAMES MILLER REDUCED THE COST OF MINISTOR PERIPHERAL CORP'S EXPANSION BY FARMING OUT PART OF THE COMPANY'S MANUFACTURING AS PRESIDENT OF THE SAN JOSE CALIF MAKER OF DURABLE PORTABLEDISK DRIVES MR MILLER REALIZED IN 1991 THAT HE COULDN'T RAISE ENOUGH MONEY TO EXPAND PRODUCTION ON HIS OWN AS A RESULT HE NOW PAYS GSS/ARRAY TECHNOLOGY INC A LOCAL CONTRACT MANUFACTURER TO ASSEMBLE ALL OF THE PRINTEDCIRCUIT BOARDS USED IN HIS COMPUTER DRIVES THE MEASURE PERMITTED MINISTOR TO INCREASE MANUFACTURING CAPACITY WITHOUT ADDING TO ITS 150PERSON WORK FORCE MR MILLER SAYS OUR STRATEGY IS TO USE SUBCONTRACTORS TO THE MAXIMUM AMOUNT POSSIBLE HE ADDS PREDICTING THAT HIS TWOYEAROLD COMPANY WILL HAVE 15 MILLION IN SALES IN 1993 OF COURSE SUCH A STRATEGY MIGHT INCREASE HIRING AT A CONTRACT MANUFACTURER BUT IT MIGHT ALSO SIMPLY KEEP EXISTING WORKERS THERE BUSY EMBREX INC ALSO TURNED TO A BIG OUTSIDE PARTNER TO INCREASE REVENUE WITHOUT ADDING TO ITS WORK FORCE IN 1991 THE RESEARCH TRIANGLE PARK NC BIOTECHNOLOGY COMPANY LICENSED ELF SANOFI SA A FRENCH PHARMACEUTICALS MAKER TO MANUFACTURE AND MARKET A VACCINE FOR CHICKENS SANOFI AND EMBREX WILL SHARE PROCEEDS FROM THE VACCINE'S SALES EMBREX DECIDED THAT PROCEEDS FROM A 1991 STOCK OFFERING WOULD BE INSUFFICIENT TO PAY FOR A VACCINEMARKETING EFFORT BY THE COMPANY ITSELF SAYS KENNETH WEST AN EMBREX VICE PRESIDENT OF SALES MARKETING AND BUSINESS DEVELOPMENT WE REALIZED GOING WITH A PARTNER WOULD SPEED OUR WAY TO MARKET AND CONSERVE OUR RESOURCES HE SAYS MR WEST SAYS THE VACCINE WILL BE INTRODUCED IN MID1993 IN THREE YEARS HE SAYS THE PRODUCT COULD ACCOUNT FOR ONEQUARTER OF THE COMPANY'S ANNUAL SALES WHICH CURRENTLY EQUAL LESS THAN 1 MILLION HE EXPECTS EMPLOYMENT RELATED TO THE NEWVACCINE VENTURE OVER THE SAME PERIOD TO REMAIN ABOUT THE SAME ANOTHER OPTION FOR STRAPPED SMALL COMPANIES THAT WANT TO GROW IS TO MERGE WITH CONCERNS THAT HAVE MORE RESOURCES THAT WAS THE CHOICE GUILD WINERIES & DISTILLERIES IN LODI CALIF MADE IN LATE 1991 WHEN IT AGREED TO SELL THE BUSINESS TO CANANDAIGUA WINE CO CANANDAIGUA NY GUILD A GROWEROWNED COOPERATIVE WANTED TO INCREASE DISTRIBUTION OF COOK'S CHAMPAGNE ITS BESTSELLING BRAND IT ALSO HOPED TO CONVERT MUCH OF ITS CROP FROM GRAPES USED TO MAKE GENERIC WINE SUCH AS CHABLIS TO GRAPES USED IN VARIETAL WINES SUCH AS ZINFANDEL AND CHARDONNAY BUT GUILD WAS ALREADY DEEPLY IN DEBT FROM RAPID GROWTH IN THE 1970S MOREOVER DEMAND FOR ITS GENERIC GRAPES WAS DECLINING WE NEEDED WORKING CAPITAL TO CONTINUE GROWING SAYS CHRIS KALABOKES GUILD'S FORMER PRESIDENT WHO NOW HEADS CANANDAIGUA'S WINE DIVISION THE BANKS WERE UNWILLING TO LEND TO US FINDING CAPITAL WAS OUR BIGGEST CHALLENGE SELLING OUT TO CANANDAIGUA WHOSE ANNUAL REVENUE WAS NEARLY TRIPLE GUILD'S 60 MILLION IN SALES HAS SOLVED THAT PROBLEM THE COMPANY HELPED CONVERT MUCH OF THE COOPERATIVE'S CROP TO VARIETAL GRAPES CANANDAIGUA'S CONCENTRATE BUSINESS BECAME A NEW BUYER OF THE GENERIC GRAPES GUILD STILL GROWS MEANWHILE ANNUAL SALES OF COOK'S CHAMPAGNE HAVE GROWN 12 SINCE THE ACQUISITION AND IT HAS BEEN INTRODUCED IN CHICAGO AND OTHER MARKETS WHERE GUILD COULDN'T AFFORD TO COMPETE EFFECTIVELY CANANDAIGUA PROVIDED CAPITAL RESOURCES THE COOP NEVER COULD HAVE GENERATED ON ITS OWN MR KALABOKES SAYS 9303180092 930318 WHO'S NEWS TOYS 'R' US CHIEF HAD OVER 64 MILLION TO PLAY WITH IN '92 EXERCISING OPTIONS ACCOUNTED FOR 572 MILLION OF SALARY ACCORDING TO PROXY FILING BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL CHARLES LAZARUS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TOYS R US INC RECEIVED MORE THAN 64 MILLION IN SALARY BONUS AND OPTIONS COMPENSATION IN 1992 ACCORDING TO A PRELIMINARY PROXY FILING A 572 MILLION CHUNK OF MR LAZARUS'S PAY CAME FROM EXERCISING OPTIONS TO BUY 18 MILLION TOYS R US COMMON SHARES AT PRICES FAR BELOW CURRENT MARKET VALUE MR LAZARUS'S TOTAL COMPENSATION LAST YEAR DWARFED THE 55 MILLION IN SALARY AND BONUSES HE MADE IN 1991 WHEN HE DIDN'T EXERCISE ANY OPTIONS WITHOUT THE OPTIONS MR LAZARUS' 1992 COMPENSATION WOULD HAVE TOTALED ABOUT 7 MILLION MR LAZARUS COULDN'T BE REACHED TO COMMENT LATE YESTERDAY IT WASN'T THE FIRST TIME THAT MR LAZARUS MADE SIGNIFICANT GAINS FROM OPTIONS IN 1987 HE EXERCISED OPTIONS WORTH 56 MILLION GIVING HIM 60 MILLION IN TOTAL PAY THAT YEAR THE HIGHEST IN THE COUNTRY ACCORDING TO SOME SURVEYS BASED ON THE NUMBERS IN THE PROXY FILING MR LAZARUS'S INDICATED PROFIT ON THE OPTIONS WAS ABOUT 32 A SHARE SEPARATE FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THAT HE EXERCISED OPTIONS TO BUY THE SHARES FOR 703 EACH FROM JULY TO SEPTEMBER WHILE SELLING SHARES OVER THE SAME PERIOD AT 3625 TO 40 IT COULDN'T BE DETERMINED WHEN THE OPTIONS WERE GRANTED UNDER AN AGREEMENT WITH THE PARAMUS NJ TOY RETAILER MR LAZARUS GETS A BASE SALARY OF 315000 AND INCENTIVE PAY OF 1 OF THE COMPANY'S PRETAX PROFITS IN EXCESS OF 18 MILLION IT'S A HECK OF A LOT OF MONEY BUT TOYS R US CAME OUT OF 1992 AS THE ONLY REMAINING POWERHOUSE AND LET'S NOT FORGET CHARLES LAZARUS CREATED THE GIANT SAID JOHN TAYLOR ANALYST FOR LH ALTON & CO IN THE FISCAL YEAR ENDED JAN 30 TOYS R US HAD NET INCOME OF 4375 MILLION OR 147 A SHARE ON SALES OF 717 BILLION NET INCOME WAS UP FROM 3395 MILLION OR 115 A SHARE ON 61 BILLION IN REVENUE THE PREVIOUS YEAR 9303180091 930311 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 9303180090 930318 WHO'S NEWS SHEARSON'S CLARK SEEN QUITTING AFTER DEMOTION BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HOWARD L CLARK JR FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SHEARSON LEHMAN BROTHERS HOLDINGS INC WILL RESIGN PEOPLE FAMILIAR WITH THE BIG BROKERAGE FIRM SAID THE RESIGNATION OF MR CLARK 49 YEARS OLD IS EXPECTED TO BE ANNOUNCED AS EARLY AS TODAY THE PEOPLE SAID COLLEAGUES HAVE EXPECTED MR CLARK TO QUIT SINCE LATE JANUARY WHEN HE WAS DEMOTED TO SHEARSON VICE CHAIRMAN BY JAMES ROBINSON III THENCHAIRMAN OF AMERICAN EXPRESS CO SHEARSON'S PARENT MR ROBINSON BRIEFLY ASSUMED MR CLARK'S POST BEFORE SUBSEQUENTLY QUITTING HIS POSITIONS AT AMERICAN EXPRESS AND SHEARSON AMID UNRAVELING SUPPORT FROM DIRECTORS KEY EMPLOYEES AND INVESTORS A SHEARSON SPOKESMAN DECLINED TO COMMENT AND MR CLARK COULDN'T BE REACHED BUT MR CLARK'S COLLEAGUES SAY HE IS ENTERTAINING INVESTMENTBANKING OFFERS FROM SEVERAL RIVAL SECURITIES FIRMS THOUGH MR CLARK ISN'T EXPECTED TO SPELL OUT HIS NEW PLANS WHEN HIS RESIGNATION IS ANNOUNCED COLLEAGUES SAY HE IS LIKELY TO SURFACE AT A NEW FIRM IN SEVERAL WEEKS THE DECISION CAPS THE SWIFT DEMISE OF MR CLARK AT SHEARSON WHEN THE SOFTSPOKEN BESPECTACLED EXECUTIVE WAS BROUGHT ON AS SHEARSON CHAIRMAN IN FEBRUARY 1990 HE WAS HAILED AS MR FIXIT BUT UNDER HIS WATCH PROBLEMS CONTINUED TO HOBBLE THE NATION'S SECONDLARGEST BROKERAGE FIRM SHEARSON HAD LOSSES OF A RECORD 966 MILLION IN 1990 AND 116 MILLION IN 1992 MR CLARK'S RESPONSIBILITIES FIRST WERE UNDERCUT IN MIDJANUARY WHEN SHEARSON APPOINTED J TOMILSON HILL AND RICHARD FULD JR TO THE POSTS OF COPRESIDENTS AND COCHIEF OPERATING OFFICERS OF THE SHEARSON HOLDING COMPANY REPORTING TO MR CLARK AT THE TIME MR CLARK INSISTED THAT THE MOVES DIDN'T DIMINISH HIS ROLE THERE'S ONE CHAIRMAN AND ONE CHIEF EXECUTIVE AND THAT'S ME HE SAID AT THE TIME LESS THAN THREE WEEKS LATER MR CLARK WAS DEMOTED TO VICE CHAIRMAN MR CLARK'S DECISION TO RESIGN IS UNRELATED TO LAST WEEK'S ANNOUNCEMENT THAT AMERICAN EXPRESS AGREED TO SELL ITS SHEARSON BROKERAGE OPERATIONS TO PRIMERICA CORP FOR 115 BILLION MESSRS HILL AND FULD WILL CONTINUE IN THEIR ROLES AS COHEADS OF LEHMAN BROTHERS INC SHEARSON'S INVESTMENTBANKING AND TRADING DIVISION THAT WASN'T INCLUDED IN THE SALE TO PRIMERICA MR CLARK WAS AMONG THE HIGHEST PAID EXECUTIVES AT AMERICAN EXPRESS IN 1992 MR CLARK RECEIVED A COMPENSATION PACKAGE OF MORE THAN 36 MILLION IN CASH AND LONGTERM INCENTIVE PAYOUTS ACCORDING TO A PRELIMINARY PROXY FILED BY AMERICAN EXPRESS WITH REGULATORS BEFORE HIS SHEARSON POSTS MR CLARK HAD BEEN AMERICAN EXPRESS'S CHIEF FINANCIAL OFFICER FOR MORE THAN FOUR YEARS HE JOINED AMERICAN EXPRESS AS AN EXECUTIVE VICE PRESIDENT IN 1981 BEFORE AMERICAN EXPRESS MR CLARK WAS A SENIOR OFFICIAL AT BLYTH EASTMAN PAINE WEBBER INC WHERE HE WAS RESPONSIBLE FOR CORPORATE FINANCE 9303180089 930318 EDS WORKING TO RESTORE OPERATIONS HIT BY STORM DALLAS ELECTRONIC DATA SYSTEMS CORP SAID IT WAS STILL ATTEMPTING TO RESTORE AUTOMATED TELLER MACHINE OPERATIONS KNOCKED OUT BY LAST WEEKEND'S HEAVY EAST COAST BLIZZARD OPERATIONS AT EDS'S CLIFTON NJ DATA CENTER WERE SHUT DOWN AND EMPLOYEES EVACUATED SATURDAY AFTER PART OF THE ROOF AND WALLS COLLAPSED UNDER HEAVY SNOW THE RESULTING DAMAGE KNOCKED OUT AN ESTIMATED 5000 AUTOMATED TELLER MACHINES OWNED OR OPERATED BY EDS AND SERVING ABOUT ONE MILLION CARD HOLDERS SINCE THEN THE COMPANY HAS BEEN TRANSFERRING THOSE OPERATIONS TO A FACILITY IN ROCHELLE NJ A COMPANY SPOKESMAN WOULDN'T ESTIMATE WHEN THE TRANSITION TO THE TEMPORARY FACILITY WOULD BE COMPLETED EDS'S INITIAL ATTEMPTS TO TRANSFER THE OPERATIONS TO A NEARBY BUILDING DESIGNATED AS A BACKUP WERE BLUNTED BECAUSE THE SPACE WAS ALREADY BEING OCCUPIED BY A BUSINESS THAT WAS DISPLACED BY THE WORLD TRADE CENTER BOMBING EDS HAS RESUMED SOME ATM OPERATIONS BY MAKING ARRANGEMENTS WITH OTHER NETWORK OPERATORS ALLOWING ABOUT 98 OF CARDHOLDERS ACCESS TO NETWORKS EDS IS THE COMPUTER SERVICES UNIT OF GENERAL MOTORS CORP 9303180088 930318 WHO'S NEWS NUI CORP NUI CORP BEDMINSTER NJ JOHN KEAN JR 35 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF ELIZABETHTOWN GAS CO THE PRINCIPAL UNIT OF THIS UTILITY HOLDING COMPANY HIS POSITION IS NEWLY CREATED PREVIOUSLY HE WAS CHIEF FINANCIAL OFFICER OF NUI HIS FATHER JOHN KEAN IS PRESIDENT AND CHIEF EXECUTIVE OF NUI DAVID P VINCENT 49 WAS NAMED CHIEF FINANCIAL OFFICER OF BOTH NUI AND ELIZABETHTOWN GAS CO HE RETAINS HIS TITLE AS EXECUTIVE VICE PRESIDENT OF NUI 9303180087 930318 WHO'S NEWS GM TABS FBI CIA EXCHIEF TO PROBE SHREDDING CHARGE DETROIT GENERAL MOTORS CORP SAID IT HIRED WILLIAM WEBSTER TO CONDUCT AN INDEPENDENT REVIEW INTO ALLEGATIONS THAT THE AUTO MAKER SHREDDED DOCUMENTS RELATED TO PICKUP TRUCKS THAT CRITICS SAY ARE UNSAFE THE DISPUTE CENTERS ON GM'S RESISTANCE TO RECALL 47 MILLION 197387 CHEVROLET AND GMC PICKUP TRUCKS CONSUMER GROUPS CONTEND GASOLINE TANKS ON THE FULLSIZE PICKUPS ARE PRONE TO BURST INTO FLAMES ON IMPACT BECAUSE THEY'RE PLACED OUTSIDE THE VEHICLE'S UNDERFRAME A GM SPOKESMAN SAID THE COMPANY HAS ALREADY CONDUCTED ITS OWN INTERNAL INVESTIGATION INTO THE CHARGES OF SHREDDING WE STRONGLY DENY THE ALLEGATIONS AND THERE HAS BEEN NO EVIDENCE TO SUPPORT THE FACT OF ANY DESTRUCTION OF DOCUMENTS THE SPOKESMAN SAID HAROLD J PEARCE GM'S EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL CONTACTED MR WEBSTER A FORMER DIRECTOR AT BOTH THE FEDERAL BUREAU OF INVESTIGATION AND THE CENTRAL INTELLIGENCE AGENCY HE WAS HIRED TO CONDUCT HIS OWN INVESTIGATION INTO THE MATTER AND TO PRESENT HIS FINDINGS TO MR PEARCE THE CENTER FOR AUTO SAFETY AND PUBLIC CITIZEN CONSUMER GROUPS SAID THEIR CHARGE WAS SUPPORTED BY A NOV 5 1991 DEPOSITION VIDEOTAPED BY A FORMER GM ENGINEER A FEW MONTHS BEFORE HIS DEATH THEODORE KASHMERICK SAID HIS DOCUMENTS ON THE TRUCKS WERE SO THOROUGH THAT THE SALES AND LEGAL DEPARTMENTS CAME TO HIM FOR DATA MR KASHMERICK ALSO SAID HE WAS TOLD AROUND 1982 THAT IT WAS NOT A GOOD IDEA TO KEEP PAPERWORK ON THE DESIGN BECAUSE IT WAS POTENTIALLY CONTROVERSIAL 9303180086 930318 BUSINESS BRIEF MCCORMICK & CO FIRM STILL SEES YEAR'S NET RISING 15 FROM FISCAL '92 MCCORMICK & CO REMAINS COMFORTABLE WITH ITS GOAL OF INCREASING EARNINGS 15 IN FISCAL 1993 EVEN THOUGH IT RECENTLY ANNOUNCED FIRSTQUARTER PROFIT FELL ABOUT A PENNY BELOW ANALYSTS' EXPECTATIONS DON PALUMBO VICE PRESIDENT AND TREASURER SAID MCCORMICK ALSO DECLARED A QUARTERLY DIVIDEND OF 11 CENTS A SHARE PAYABLE APRIL 12 TO STOCK OF RECORD MARCH 31 OUR FOURTHQUARTER PROFIT TENDS TO BE OUR LARGEST TYPICALLY DOUBLE EITHER OUR FIRST OR SECOND QUARTER MR PALUMBO SAID IN AN INTERVIEW I DON'T THINK THERE'S ANYTHING TO GET TOO CONCERNED ABOUT WITH MCCORMICK WHEN THEY MISS ESTIMATES BY A PENNY OR TWO IN THE FIRST OR SECOND QUARTER THE SPARKS MD FOOD CONCERN ANNOUNCED MONDAY THAT IT EARNED 22 CENTS A SHARE IN THE FISCAL FIR QUARTER ENDED FEB 28 UP FROM 21 CENTS A YEAR EARLIER 9303180085 930318 ECONOMY CONSUMER PRICES WERE UP 03 FOR FEBRUARY FIGURE INCREASES WORRIES OVER INFLATION OUTPUT OF INDUSTRY ROSE 04 BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PRICES CONSUMERS PAID FOR GOODS AND SERVICES INCREASED 03 IN FEBRUARY ACCORDING TO THE LABOR DEPARTMENT ADDING TO AN UNEASINESS THAT INFLATION MAY BE ACCELERATING NONETHELESS ECONOMISTS SAID IT WAS TOO SOON TO CONCLUDE THAT INFLATION WAS ROARING BACK TO THE DEGREE THAT IT COULD THREATEN ECONOMIC GROWTH THIS IS NOT AN IMMEDIATE CAUSE FOR CONCERN SAID MICKEY LEVY OF CRT GOVERNMENT SECURITIES SEPARATELY THE FEDERAL RESERVE BOARD SAID INDUSTRIAL PRODUCTION WAS UP FOR THE FIFTH STRAIGHT MONTH INDICATING THAT THE MANUFACTURING SECTOR IS ON SOLID FOOTING THE MOST WORRISOME ELEMENT IN THE CONSUMER PRICE INDEX ANALYSTS SAID WAS A SECOND STRAIGHT 05 MONTHLY RISE IN THE CORE INFLATION RATE WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY SECTORS YOU GET A LITTLE BIT ALARMED WHEN YOU SEE TWO REPORTS LIKE THIS IN A ROW SAID DONALD STRASZHEIM CHIEF ECONOMIST AT MERRILL LYNCH & CO ON TOP OF THAT THE LABOR DEPARTMENT SAID LAST WEEK THAT WHOLESALE PRICES IN FEBRUARY SURGED MORE THAN THEY HAD IN THREE YEARS STILL SEVERAL ECONOMISTS SAID THE LATEST CONSUMER PRICE NUMBERS MAY BE A TEMPORARY SPIKE AND MANY FORECASTERS INCLUDING MR STRASZHEIM ARE PREDICTING THAT INFLATION FOR ALL 1993 WILL BE BELOW LAST YEAR'S 29 RATE TESTIFYING BEFORE THE SENATE BANKING COMMITTEE YESTERDAY FED CHAIRMAN ALAN GREENSPAN ACKNOWLEDGED THAT INFLATIONARY TRENDS FOR THE YEAR ARE OFF TO A LESSTHANAUSPICIOUS START BUT HE CALLED THE CONSUMER PRICE DATA AN ABERRATION ED YARDENI OF CJ LAWRENCE INC NOTED THAT THE LAST TIME CORE CONSUMER PRICES SHOWED BACKTOBACK BOOSTS OF 05 OR MORE WAS IN JANUARY AND FEBRUARY OF 1991 IN THE MONTHS THAT FOLLOWED THOUGH INFLATION MODERATED AND HE EXPECTS THAT TO HAPPEN AGAIN THE SINGLE BIGGEST CONTRIBUTOR TO LAST MONTH'S PICKUP IN INFLATION WAS APPAREL PRICES WHICH SOARED 15 MR STRASZHEIM SAID THE RISE REFLECTED EARLIER MOVES BY RETAILERS TO SLASH PRICES LEAVING LITTLE ROOM FOR FURTHER REDUCTIONS DURING A PERIOD IN WHICH DISCOUNTING TYPICALLY TAKES PLACE EXCLUDING APPAREL PRICES WHICH AREN'T LIKELY TO KEEP CLIMBING SO SWIFTLY CORE INFLATION STILL INCREASED AT AN ANNUAL 48 PACE TRANSPORTATION AND MEDICAL PRICES WERE BOTH 05 HIGHER FOR THE MONTH BUT MR GREENSPAN SAID THAT LABOR COSTS WHICH HE TERMED THE MOST FUNDAMENTAL DRIVER OF INFLATION REMAIN UNDER CONTROL AS COMPANIES IMPROVE THEIR PRODUCTIVITY HE ALSO SAID IT ISN'T UNUSUAL TO SEE RAW MATERIAL PRICES RISE AS THE ECONOMY FIRMS OTHERS AGREED HIGHER PRICES ARE JUST ANOTHER SIGN THAT THE RECOVERY IS UNDER WAY SAID JOHN MCDEVITT CORPORATE ECONOMIST AT MINNESOTA MINING & MANUFACTURING CO THAT SHOULDN'T BE CONSIDERED A PROBLEM HE ADDED AS LONG AS IT DOESN'T GET OUT OF HAND THAT POINT WAS UNDERSCORED BY THE FED'S REPORT ON INDUSTRIAL PRODUCTION WHICH FOUND THAT OUTPUT ROSE 04 IN FEBRUARY AFTER A REVISED 05 INCREASE A MONTH EARLIER THE LATEST ADVANCE CAME DESPITE A 21 DROP IN PRODUCTION AT THE NATION'S MINES WHICH WAS PARTLY THE RESULT OF A COAL STRIKE THE OUTPUT AT UTILITIES SHOT UP 37 REBOUNDING FROM A 18 DECLINE THE MONTH BEFORE THAT HAD BEEN ATTRIBUTED TO WARM WEATHER FACTORY OUTPUT ROSE 03 LED BY GAINS IN THE PRODUCTION OF CONSTRUCTION SUPPLIES AND CONSUMER GOODS OVERALL INDUSTRY OPERATED AT 799 OF CAPACITY LAST MONTH THAT WAS UP FROM 797 IN JANUARY BUT STILL WELL BELOW THE LEVELS ASSOCIATED WITH RUNAWAY INFLATION ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE SEASONALLY ADJUSTED CHANGES IN THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR FEBRUARY FEBRUARY CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM FEBRUARY 1992 WERE HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN FEBRUARY THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR FEBRUARY STOOD AT 1118 OF THE 1987 AVERAGE 9303180084 930317 US TREASURY TO SELL 224 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 450 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 224 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2284 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS CUSIP 912794D68 MATURING ON JUNE 24 AND 26WEEK BILLS CUSIP 912794E34 MATURING SEPT 23 THE MINIMUM DENOMINATION IS 10000 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 100 PM EST 9303180083 930318 LETTERS TO THE EDITOR CLINTON'S CLEAR VISION FOR HIGH TECHNOLOGIES BRINK LINDSEY'S FEB 25 EDITORIALPAGE ARTICLE THE HASBEEN PUNDIT AND THE BRAND NEW PRESIDENT DEBUNKING PRESIDENT CLINTON'S PLAN TO RESTORE US COMPETITIVENESS IN HIGH TECHNOLOGY MISSTATES THE PROPOSAL AND MISLEADS READERS MR LINDSEY PREDICTS THE CLINTON PLAN WOULD GO THE WAY OF FAILED EUROPEAN EFFORTS TO SUBSIDIZE NATIONAL CHAMPIONS IT WON'T BECAUSE IT IS NOT FOCUSED ON PROPPING UP COMPANIES OR EVEN INDUSTRIES LIKE JAPANESE HIGHTECH STRATEGY IT IS FOCUSED ON TECHNOLOGIES AND ON PUTTING TOGETHER THE FINANCIAL TECHNICAL AND HUMAN RESOURCES NECESSARY FOR SUCCESSFUL DEVELOPMENT OF SUPERCONDUCTIVITY ADVANCED CERAMICS SUPERCOMPUTING AND THE REST AS FUMIO KODAMA FORMERLY OF THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MITI HAS SHOWN IN HIS DESCRIPTION OF JAPANESE TECHNOLOGY DEVELOPMENT THESE TECHNOLOGIES DO NOT EMERGE FROM SINGLE COMPANIES OR SINGLE INDUSTRIES THEY ARISE FROM TECHNOLOGY FUSION AMONG A NUMBER OF INDUSTRIES GLASS CABLE ELECTRONICS MECHANICAL AND MATERIALS TECHNOLOGIES IN MACHINE TOOLS AND ROBOTICS AND INDEED IN THE US THE EXPERIENCE OF THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY DARPA REVEALS MUCH THE SAME DARPA KEPT THE US ON THE LEADING EDGE OF CRITICAL TECHNOLOGIES FOR 30 YEARS BY WORKING WITH INDUSTRY ACADEMIA AND THE NATIONAL LABORATORIES TO ENCOURAGE THE KIND OF INTERINDUSTRY AND INTERCOMPANY COLLABORATION THAT WOULD NOT HAVE HAPPENED BY ITSELF JUST AS IN THE CASE OF MITI IN JAPAN THE PATIENT CAPITAL IT PROVIDED WAS IMPORTANT BUT EVEN MORE SO WAS THE LONGTERM VISION ARRIVED AT IN COOPERATION WITH INDUSTRY A VISION THAT NO SINGLE COMPANY OR INDUSTRY COULD IMPLEMENT BY ITSELF AS I READ IT THE OBJECTIVE OF THE CLINTON PLAN IS TO DO COMMERCIALLY WHAT WE DID FOR SO LONG AND SO WELL IN THE MILITARY ARENA BEARING IN MIND THAT TODAY COMMERCIAL COMPETITIVENESS IN ADVANCED TECHNOLOGIES IS AS CRITICAL TO THE NATIONAL SECURITY AS IT IS TO OUR STANDARD OF LIVING 9303180082 930318 WHO'S NEWS KIII COMMUNICATIONS CORP KIII COMMUNICATIONS CORP NEW YORK HARRY A MCQUILLEN 46 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INTERTEC PUBLISHING CORP A TRADE MAGAZINE SUBSIDIARY OF THIS CLOSELY HELD PUBLISHER HE SUCCEEDS ROBERT J HANCOCK 65 WHO RETIRED MR MCQUILLEN CURRENTLY IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF KIII'S CONSUMER MAGAZINE DIVISION AND GROUP VICE PRESIDENT OF THE KIII MAGAZINE GROUP RAYMOND E MALONEY 59 WAS NAMED EXECUTIVE VICE PRESIDENT OF INTERTEC A NEW POSITION HE PREVIOUSLY WAS CONTROLLER VICE PRESIDENT/FINANCE AND CHIEF FINANCIAL OFFICER OF INTERTEC 9303180081 930318 INTERNATIONAL US ALLIES SEEM SET TO GIVE NORTH KOREA TIME TO CONSIDER TREATY WITHDRAWAL BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US AND ITS ALLIES APPEAR READY TO GIVE NORTH KOREA TIME TO RECONSIDER ITS WITHDRAWAL FROM THE NUCLEAR NONPROLIFERATION TREATY AND TO CLIMB DOWN FROM ITS CONFRONTATION WITH THE INTERNATIONAL COMMUNITY A SPOKESMAN FOR THE INTERNATIONAL ATOMIC ENERGY AGENCY SAID IN VIENNA THAT REPRESENTATIVES FROM THE 35 COUNTRIES ON THE AGENCY'S BOARD WILL MEET TODAY AND ARE LIKELY TO POSTPONE UNTIL MARCH 31 ANY DETERMINATION THAT NORTH KOREA HAD VIOLATED ITS OBLIGATIONS AS A SIGNATORY TO THE TREATY WE STILL HOPE THAT ONCE THE MILITARY EXERCISES ARE OVER NORTH KOREA WILL INDICATE IT HASN'T SAID ITS LAST WORD ON THIS MATTER SAID THE SPOKESMAN DAVID KYD HE WAS REFERRING TO TEAM SPIRIT A USSOUTH KOREAN MILITARY EXERCISE THAT NORTH KOREA CITED FRIDAY AS THE MAIN REASON FOR ITS WITHDRAWAL FROM THE TREATY MEANWHILE THE US FRANCE RUSSIA AND THE UK WERE DRAFTING A RESOLUTION FOR THE UNITED NATIONS SECURITY COUNCIL IN NEW YORK THAT WOULD ALLOW A THREEMONTH BREATHING SPELL BEFORE THE SECURITY COUNCIL RESPONDS TO NORTH KOREA'S UNPRECEDENTED WITHDRAWAL UNDER THE NONPROLIFERATION TREATY ADOPTED IN 1970 AND SIGNED BY MORE THAN 150 NATIONS A COUNTRY THAT WITHDRAWS REMAINS SUBJECT TO THE TREATY FOR 90 DAYS AT THE SAME TIME US DIPLOMATS MET YESTERDAY IN BEIJING WITH NORTH KOREAN COUNTERPARTS AMID SIGNS THAT CHINA WAS EMERGING AS A PLAYER IN THE EFFORT TO DEFUSE THE TENSE MILITARY SITUATION ON THE KOREAN PENINSULA WHERE BOTH KOREAN ARMIES HAVE BEEN PLACED ON ALERT CHINA HAS LONGTIME COMMUNIST FRATERNAL TIES WITH NORTH KOREA AND MORE RECENTLY HAS OPENED TRADE AND DIPLOMATIC TIES WITH SOUTH KOREA TEAM SPIRIT 10 DAYS OF MILITARY MANEUVERS THAT PYONGYANG HAD LABELED A NUCLEAR WAR EXERCISE ENDS TODAY A PENTAGON SPOKESMAN SAID 19000 US TROOPS JOINED THE 37000 US SOLDIERS BASED IN SOUTH KOREA FOR THE EXERCISE THEY WILL BEGIN TO LEAVE REASONABLY QUICKLY HE SAID THOUGH IT WILL TAKE AS LONG AS A MONTH TO WITHDRAW THEIR HEAVY EQUIPMENT DURING THE EXERCISES WHICH WERE KEPT AT LEAST 50 MILES SOUTH OF THE NORTH KOREAN BORDER THREE US B1B BOMBERS FLEW SIMULATED WARTIME MISSIONS NORTH KOREA CLAIMED THE PLANES CARRIED NUCLEAR WEAPONS BUT THE PENTAGON SAID THE PLANES WERE AMONG A NUMBER OF B1S THAT THE AIR FORCE HAS RECONFIGURED TO CARRY ONLY CONVENTIONAL WEAPONS NORTH KOREA'S PROBLEM WITH THE IAEA BEGAN IN JANUARY WHEN THE UN AGENCY'S INSPECTORS FOUND A DISCREPANCY THAT INDICATED NORTH KOREA HAD REMOVED MORE PLUTONIUM FROM A RESEARCH REACTOR THAN IT HAD DECLARED PLUTONIUM IS AN EXPLOSIVE METAL USED IN NUCLEAR WARHEADS THE INSPECTORS SOUGHT ACCESS TO TWO SUSPECTED NUCLEAR WASTE SITES WHERE TESTING MIGHT HAVE INDICATED THE AMOUNT OF PLUTONIUM NORTH KOREA HAD SEPARATED FROM NUCLEAR FUEL TAKEN FROM THE REACTOR BUT NORTH KOREA REFUSED CREATING AN IMPASSE THAT GOES DIRECTLY TO THE HEART OF THE NONPROLIFERATION TREATY NO NATION HAS EVER WITHDRAWN FROM THE TREATY WHICH WAS DEVISED TO ASSURE NATIONS THAT FORGO NUCLEAR WEAPONS THAT OTHER NATIONS AREN'T SECRETLY DEVELOPING THEM THE US CENTRAL INTELLIGENCE AGENCY SAYS NORTH KOREA IS HIDING A NUCLEAR WEAPONS PROGRAM THAT HAS ENOUGH MATERIAL FOR AT LEAST ONE WEAPON ON FEB 25 THE IAEA SET A ONEMONTH DEADLINE REQUIRING NORTH KOREA TO GRANT ACCESS TO THE INSPECTORS NORTH KOREA RESPONDED BY WITHDRAWING FROM THE TREATY DECLARING A STATE OF NEARWAR WITH THE US BANNING VISAS TO FOREIGNERS JAMMING FOREIGN RADIO BROADCASTS AND HOLDING NUMEROUS CIVIL DEFENSE EXERCISES INCLUDING BLACKOUTS IN PYONGYANG THE CAPITAL THOUGH IT BLAMED TEAM SPIRIT FOR THE PROVOCATION PYONGYANG'S REACTION WENT FAR BEYOND ITS NORMAL TANTRUM AGAINST THE ANNUAL EXERCISE WHICH WAS CANCELED LAST YEAR AMID SIGNS NORTH KOREA WOULD COOPERATE WITH THE IAEA INSPECTIONS UNWINDING NORTH KOREA FROM ITS SHRILL POSITION WON'T BE EASY SINCE RUSSIA ENDED ITS TRADE TIES IN 1991 NORTH KOREA HAS BECOME ONE OF THE WORLD'S MOST ISOLATED NATIONS WITH AN ESTIMATED ONE MILLION TROOPS WITHIN 60 MILES OF SOUTH KOREA'S BORDER IT POSES A THREAT TO THE SOUTH THOUGH ITS ABILITY TO SUSTAIN AN ATTACK IS DOUBTFUL A TEAM OF US EXPERTS WHO RECENTLY VISITED PYONGYANG ON BEHALF OF THE NEW YORKBASED ASIA SOCIETY FOUND THE NATION'S ECONOMY UNDER SEVERE STRAIN THEY SAW MANY BROKEN DOWN ARMY VEHICLES LITTLE TRAFFIC AND NO AIRCRAFT FLYING ONE FACTOR WAS AN ACUTE OIL SHORTAGE THAT HAD CAUSED CUTBACKS IN PUBLIC BUS SERVICE AND MAY HAVE CAUSED THE WEEKEND ELECTRICAL BLACKOUTS IMPOSED IN PYONGYANG 9303180080 930318 NEW DEMOCRATS LOSE THINKTANK WAR BY DOUG BANDOW DURING THE REPUBLICANS' ASCENDANCY IN THE WHITE HOUSE THE HERITAGE FOUNDATION WAS THE POLITICALLY IN THINK TANK THE RESEARCH ORGANIZATION MOST RESPONSIBLE FOR PROVIDING THE INTELLECTUAL UNDERPINNINGS OF THE ADMINISTRATIONS' POLICIES DURING THE RECENT CAMPAIGN THE PROGRESSIVE POLICY INSTITUTE CONSIDERED THE MOST LIKELY DEMOCRATIC THINK TANK TO TAKE INTELLECTUAL CENTER STAGE WAS WAITING IN THE WINGS FOR BILL CLINTON'S VICTORY THE VICTORY CAME FOR MR CLINTON BUT PPI IS STILL WAITING PPI HAS BEEN DISTINGUISHED BY ITS COMMONSENSICAL APPROACH TO MANY ISSUES OFTEN CONTRAVENING THE NOSTRUMS LONG ESPOUSED BY MOST DEMOCRATS PPI'S FIRST STUDY CRITICIZED THE MINIMUM WAGE FOR BEING INEFFECTIVE IN HELPING THE POOR THE INSTITUTE ALSO RECOGNIZES THE IMPORTANCE OF FAMILIES AND TAKES THE VIRTUES OF THE MARKETPLACE SERIOUSLY PPI WAS AN OFFSHOOT OF THE DEMOCRATIC LEADERSHIP COUNCIL WHICH MR CLINTON ONCE HEADED SOME PPI STAFFERS LIKE ITS PRESIDENT WILL MARSHALL AND VICE PRESIDENT ROBERT SHAPIRO WERE CLINTON CAMPAIGN ADVISERS WHILE ALLIED THINKERS THE DLC'S AL FROM FOR ONE HELD POSITIONS DURING THE TRANSITION DLC STAFFER BRUCE REED HAS ENDED UP IN THE WHITE HOUSE WHILE TREASURY SECRETARY LLOYD BENTSEN WAS ALSO ASSOCIATED WITH THE GROUP INDEED THE DLC AND PPI'S ACTIVITIES HELPED MR CLINTON ESTABLISH HIS IMAGE AS A NEW DEMOCRAT SUPPOSEDLY EXEMPLIFYING HIS WILLINGNESS TO CONFRONT THE FAILED LIBERAL PROGRAMS OF THE PAST PPI IS NOT THE ONLY DEMOCRATIC THINK TANK HOWEVER THERE IS ALSO THE ECONOMIC POLICY INSTITUTE FOUNDED IN 1986 AND HEAVILY FUNDED BY LABOR UNIONS EPI HAS POURED FORTH A STREAM OF STUDIES DENOUNCING THE FREEDOM OF PEOPLE TO TRADE ACROSS INTERNATIONAL BORDERS DEMANDING INCREASED GOVERNMENT EXPENDITURES AND CRITICIZING DEREGULATION IN EPI'S VIEW THERE ARE FEW PROBLEMS SUCH AS EDUCATION THAT CANNOT BE SOLVED BY SPENDING A FEW SCORE MORE BILLION DOLLARS COLLECTED FROM WHATEVER WALLETS ARE WITHIN REACH IN SHORT WHILE PPI SEEKS TO RESHAPE DEMOCRATIC ORTHODOXY EPI FIGHTS TO CEMENT IT DURING THE CAMPAIGN BILL CLINTON APPEARED TO FAVOR PPI BUT HE HAS ALMOST ENTIRELY IGNORED THE ORGANIZATION IN STAFFING HIS ADMINISTRATION INSTEAD EPI HAS SEIZED THE HIGH POLITICAL GROUND FOR INSTANCE LABOR SECRETARY ROBERT REICH AN EPI BOARD MEMBER HAS BEEN BUSY PUSHING ORGANIZED LABOR'S AGENDA PROPOSING AN INCREASED MINIMUM WAGE AN IDEA CRITICIZED BY PPI AMONG OTHER THINGS MOREOVER TWO MEMBERS OF EPI'S RESEARCH COUNCIL HAVE ENDED UP IN HIGH POSITIONS LAURA TYSON WHO WAS ONCE ENAMORED OF EASTERN EUROPEAN CENTRAL PLANNING IS HEAD OF THE COUNCIL OF ECONOMIC ADVISERS IRA MAGAZINER SERVES ON THE WHITE HOUSE STAFF AND APPARENTLY HAS PRIMARY RESPONSIBILITY AFTER HILLARY RODHAM CLINTON FOR HEALTH CARE POLICY IF BILL CLINTON IS REALLY A NEW DEMOCRAT IT ISN'T EVIDENT FROM THESE APPOINTMENTS THE FACT THAT EPI RATHER THAN PPI SEEMS TO HAVE EMERGED AS THE PREMIER DEMOCRATIC THINK TANK MAKES THE ACTIVITIES OF ANOTHER EPI ALL THE MORE IMPORTANT CREATED IN 1991 THE EMPLOYMENT POLICIES INSTITUTE IS DEDICATED TO SHEDDING A LITTLE ECONOMIC LIGHT ON THE SORT OF INTERVENTIONIST STRATEGIES ADVOCATED BY THE OTHER EPI STRATEGIES THAT USUALLY RECEIVE RAPTUROUS APPLAUSE FROM LEGISLATORS FOR INSTANCE THE SECOND EPI HAS PUBLISHED STUDIES REVIEWING THE JOBDISCOURAGING IMPACT OF SOCIAL SECURITY TAXES ON SMALL BUSINESS THE HARMFUL EFFECT OF MANDATED BENEFITS ON WORKERS AND THE PERVERSE CONSEQUENCES OF THE MINIMUM WAGE ON THE ECONOMY THINK TANKS HAVE ONLY AN INDIRECT IMPACT ON POLICY BUT THE FACT THAT THE ECONOMIC POLICY INSTITUTE RATHER THAN THE PROGRESSIVE POLICY INSTITUTE APPEARS TO HAVE BILL CLINTON'S EAR SIGNALS THE LEFTWARD TILT IN HIS ADMINISTRATION WHICH MAKES ALL THE MORE IMPORTANT EFFORTS OF GROUPS SUCH AS THE EMPLOYMENT POLICIES INSTITUTE MR BANDOW IS A FELLOW AT THE CATO INSTITUTE AND FORMER SPECIAL ASSISTANT TO PRESIDENT REAGAN 9303180079 930318 BESET BY CORRUPTION ITALIANS MAKE GLOOM A FASHION STATEMENT NEWEST DESIGNS ARE SOMBER AND THE HEROES OF THE HOUR ARE PROSECUTORS AND JUDGES BY CRAIG FORMAN AND LISA BANNON STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN SUPERMODEL KAREN MULDER WALKS DOWN THE GUCCI RUNWAY AS THE MELANCHOLY TUNE SMILE THOUGH YOUR HEART IS BREAKING WAFTS OVER THE CROWD MISS MULDER IS HIDDEN UNDER YARDS OF GLOOMY GRAY FABRIC A DISTINCT BREAK WITH SEXIER SEASONS GONE BY THE SOMBER OUTFIT SYMBOLIZES ITALY'S MOOD THESE DAYS CALL IT LA DOLEFUL VITA A SHATTERING CORRUPTION SCANDAL IS TAKING A BIG TOLL ON THE NATION'S PSYCHE WITH THE FALLOUT SPREADING FROM FASHION TO FILMS FROM MUSIC TO FITNESS CLUBS THE NEW MESSAGE OF ITALIAN CULTURE IS THAT THE SWEET LIFE HAS SOURED DEPRESSION IS IN DECADENCE IS OUT MORALITY IS IN THIS IS A BIG CHANGE FOR ITALY THE EXTENT OF CORRUPTION REVEALED IN THE TANGENTI OR KICKBACK AFFAIR IS LIKE WATERGATE TEAPOT DOME AND THE LOCKHEED BRIBERY SCANDALS ROLLED TOGETHER VIRTUALLY ITALY'S ENTIRE BUSINESS AND POLITICAL ESTABLISHMENT HAS BEEN IMPLICATED SURVEYS SHOW THAT NORMALLY EXUBERANT PEOPLE ARE UNHAPPY AND INCREASINGLY FED UP WITH THE OMNIPRESENT CORRUPTION WHILE THE SCANDALS MAY EVENTUALLY PAVE THE WAY FOR A CLEANED UP POLITICAL SYSTEM THE POPCULTURE REVOLUTION IS ALREADY WELL UNDER WAY THE SCANDALS ARE INSPIRING NOT ONLY FASHION DESIGNERS BUT ITALIAN MOVIE DIRECTORS WRITERS AND ARTISTS FIVE NEW MOVIES ABOUT THE SCANDALS ARE DUE OUT THIS SPRING ALONE MORE ARE IN PRODUCTION THE FIRST CALLED THE STORM IS COMING FEATURES A PROSECUTOR AS THE PROTAGONIST STRUGGLING SUCCESSFULLY TO FEND OFF THE TEMPTATIONS OF BRIBERY AND CORRUPTION THE SCANDALS HAVE PROMPTED A FLOOD OF NEW BOOKS TOO TWELVE HAVE BEEN PUBLISHED IN CONNECTION WITH THE INVESTIGATIONS SINCE LAST YEAR THE PORTRAIT OF ITALIAN LIFE CONTAINED IN THESE WORKS IS UNIFORMLY BLEAK AS HE PUTS THE FINISHING TOUCHES TO HIS MOVIE WHICH OPENS LATER THIS MONTH DIRECTOR DANIELE LUCHETTI SAYS HE HOPES THE FILM WILL MAKE PEOPLE WAKE UP WE NEED TO REWRITE OUR CODE OF BEHAVIOR TO ELIMINATE THE TWISTED LOGIC THAT DOMINATES OUR NATION HE TOLD A LOCAL MAGAZINE DAILY MORE DOWNTOEARTH MANIFESTATIONS OF THE SCANDALS TURN UP IN GRAFFITI TSHIRTS AND STREET PERFORMANCES AT STUDIO FITNESS DI MILANO A PUNCHING BAG WITH THE FACE OF FORMER PRIME MINISTER BETTINO CRAXI HAS BEEN THE GYM'S MOST POPULAR EXERCISE MACHINE OVER THE PAST MONTH MR CRAXI A SOCIALIST PARTY LUMINARY IS UNDER INVESTIGATION IN THE SCANDALS IT GOT BROKEN TWICE BECAUSE SO MANY PEOPLE KEPT HITTING IT SAYS GYM OWNER PATRIZIA CORTESI WE KEEP IT AT THE ENTRANCE NOW SO OUR CLIENTS CAN SWING AT IT WHEN THEY WALK IN THE DOOR THE CRAXI BAG HAS BEEN SUCH A SUCCESS THAT MS CORTESI NOW PLANS TO INSTALL A MATCHING MACHINE WITH THE HEAD OF PRIME MINISTER GIULIANO AMATO ON TV ADS MOCK THE CORRUPT A BRAND OF HOUSEHOLD SPONGE SAYS IT CAN PROVIDE WHAT ITALY REALLY NEEDS A BIG CLEANUP A TYPE OF CHEESE CLAIMS IT IS THE ONLY PURE THING LEFT IN ITALY WHILE THERE ARE STILL PLENTY OF VESPA MOTOR SCOOTERS ZIPPING AROUND PEOPLE ARE FORSAKING NIGHTLY CRUISING AND FLIRTING TO STAY HOME AND WATCH THE NEWS TALK SHOWS DEVOTED TO THE SCANDALS LAW SCHOOLS ARE OVERFLOWING WITH ASPIRING ANTICORRUPTION MAGISTRATES SURVEYS SHOW THAT ITALY'S SMALL GROUP OF PROSECUTORS ARE NOW THE MOST RESPECTED PEOPLE IN THE COUNTRY THE UNIVERSITY OF MILAN IS THINKING OF OPENING A SECOND LEGALSTUDIES DEPARTMENT TO COPE WITH DEMAND A HOTEL RECEPTIONIST STUDIES A CRIMINALPROCEDURE TEXTBOOK LATE INTO THE NIGHT DREAMING OF BECOMING A JUDGE THERE'S EVEN A NEW BOARD GAME SIMILAR TO TRIVIAL PURSUIT CALLED TANGENTOPOLI OR KICKBACK CITY IN WHICH PLAYERS ANSWER QUESTIONS ABOUT THE SCANDALS GIVEN THE WAY PEOPLE FEEL IT MAY TAKE A LONG TIME FOR ITALY TO EMERGE FROM ITS FUNK IN A FRONTPAGE STORY ABOUT ITS VISION OF ITALY'S FUTURE LEADER THE SATIRICAL MAGAZINE CUORE FEATURES A COVER PHOTO OF A LITTLE BABY HE'S NOT INVOLVED IN SCANDALS OR IN POLITICAL GAMES SAYS THE MAGAZINE WE'VE BEEN WAITING SINCE 1945 FOR SOMEONE TO SAVE ITALY WE MIGHT AS WELL WAIT A LITTLE LONGER BUT NOWHERE IS THE IMPACT ON THE NATION'S PSYCHE MORE APPARENT THAN IN THE CURRENT SOMBER MOOD AT SOME OF ITALY'S BEST KNOWN FASHION HOUSES THE BIANNUAL FASHION SHOWS NORMALLY A CELEBRATION OF THE OPULENT AND THE EXTREME WERE UNUSUALLY SUBDUED THIS YEAR NO PLUMES OR FEATHERS OR CONESHAPED BRAS JUST YARDS AND YARDS OF DARK HUES THE SEASON REFLECTED THE MOOD IN ITALY A NEED TO CLEANSE AND FIND THE VALUES THAT HAVE BEEN LOST SAYS FRANCA SOZZANI EDITOR OF VOGUE ITALIA THE LOOK IS MORE TIMID THE EPICENTER OF WHAT IS BEING CALLED THE NEW SIMPLICITY IS THE 17THCENTURY PALAZZO HEADQUARTERS OF MILAN'S VERSACE DESIGN HOUSE PAST THE ANDY WARHOLS AND THE ARTDECO FURNITURE AND DOWN A SPIRAL STAIRCASE VERSACE'S SUBTERRANEAN STOREHOUSE PROVIDES A TIMELINE TO THE ITALIAN SUBCONSCIOUS MOST OF THE SPACE A FORMER CRYPT IS FILLED WITH THE DARK BLUES GRAYS AND BLACKS THE DESIGNER IS MAKING THIS YEAR CONSIGNED TO A CORNER IS A SINGLE RACK WITH THE FLAMBOYANT COLORS AND BRASH DESIGNS OF YESTERYEAR THAT PUT GIANNI VERSACE ON THE MAP THIS GENERAL CLIMATE OF DISSATISFACTION AND DISTRESS HAS CERTAINLY INFLUENCED MY COLLECTION SAYS MR VERSACE HE SAYS THE CORRUPTION SCANDALS HAVE INSPIRED HIM TO SEARCH FOR PURITY AND SIMPLICITY HIS BROTHER SANTO WHO'S IN CHARGE OF THE FASHION HOUSE'S FINANCES IS SEARCHING FOR CUSTOMERS HAVING ENSNARED ITALY'S RICH AND FAMOUS THE SCANDALS HAVE BEEN BAD FOR BUSINESS HE'S JETTING TO THE FAR EAST WHERE DEMAND IS BRIGHT EVEN THE US MARKET IS MORE UPBEAT THAN ITALY'S YOU HAD YOUR BIG CHANGE WITH CLINTON HE SAYS ITALY'S CULTURAL REVOLUTION REACHES ITS PEAK IN A CURRENT AD CAMPAIGN BY THE BENETTON CLOTHING COMPANY IN CONTROVERSIAL BILLBOARDS LUCIANO BENETTON AN ITALIAN SENATOR AND SCION OF THE FASHIONRETAILING FAMILY APPEARS STARK NAKED THE 57YEAROLD MR BENETTON CLAIMS HIS NUDITY HIGHLIGHTS THE NEED FOR TRANSPARENCY IN ITALIAN POLITICAL AND BUSINESS LIFE IT'S A METAPHOR FOR WHAT A PARLIAMENTARIAN MUST DO HE SAYS IT'S FROM THIS NUDITY THAT POLITICS MUST BE REBORN MAUREEN KLINE CONTRIBUTED TO THIS ARTICLE 9303180078 930318 LETTERS TO THE EDITOR SOCIAL ENGINEERING VS SPIRITUAL VALUES GLENN C LOURY'S GOD AND THE GHETTO EDITORIAL PAGE FEB 25 SHOULD BE MADE REQUIRED READING FOR PRESIDENT CLINTON AND HIS SOCIAL ENGINEERS AS ONE OF MILLIONS OF INDIVIDUALS WHOSE LIFE HAS BENEFITED FROM RECOVERY BASED ON SPIRITUAL PRINCIPLES I CAN ATTEST TO THE HAVOC WROUGHT BY ATTEMPTING TO CHANGE A DEBILITATING CONDITION WITHOUT AN AWARENESS OF THE NECESSITY FOR SOME ELEMENT OF SPIRITUALITY AS PROF LOURY POINTS OUT WE HAVE EFFECTIVELY DIVORCED OUR SOCIETY FROM ANY DISCOURSE ON MORAL VIRTUES WHEN DEALING WITH BROAD SOCIAL ISSUES ANY ATTEMPT TO BRING UP THE IDEA THAT THE ROOT CAUSE OF THE ILLS THAT PLAGUE NOT JUST BLACK URBAN COMMUNITIES BUT OUR WHOLE SOCIETY ARE GENERATED BY A LACK OF MORAL VALUES INVARIABLY EARNS THE PROPONENT OF SUCH A VIEW THE ONEROUS DISTINCTION OF BEING A RABID CHRISTIAN FUNDAMENTALIST THERE IS A DEFINITION THAT EQUATES INSANITY WITH DOING THE SAME THING OVER AND OVER AGAIN EACH TIME EXPECTING DIFFERENT RESULTS GIVEN THAT WE HAVE SPENT THE PAST 25 YEARS POURING MONEY INTO SOCIAL PROGRAMS THAT SHOW DUBIOUS RETURNS ON INVESTMENTS PERHAPS IT IS TIME WE BEGIN TO LOOK AT PROF LOURY'S TRULY RADICAL NOTION AND BEGIN TO INTRODUCE THE THOUGHT THAT GOD IN WHATEVER WAY YOU CHOOSE TO VIEW THE DEITY HELPS THOSE WHO HELP THEMSELVES FURTHER I WOULD SUGGEST REMEMBERING ANOTHER SPIRITUAL APHORISM THAT FAITH WITHOUT WORKS IS DEAD AND IT MAY BE THAT THE GOVERNMENT'S PRACTICE OF TRYING TO ENCOURAGE WORKS WITHOUT PROVIDING ANY CORRESPONDING FAITH IS ONE REASON THAT AFTER 25 YEARS OF SOCIAL ENGINEERING THERE IS NO DISCERNIBLE IMPROVEMENT IN THE GHETTO UNRELIABILITY UNTRUTHFULNESS UNFAITHFULNESS SEXUAL PROMISCUITY ETC ARE NOT UNIQUE TO THE GHETTO BUT ARE WORLDWIDE PHENOMENA HOW MANY PEOPLE DOES MR LOURY KNOW WHO LIVE IN THE GHETTO DOES HE HAVE THE PERSONAL CONTACT TO GENERALIZE AND PASS JUDGMENT ON THEIR PERSONAL MORALITY CHARACTER AND VALUES THROUGHOUT THE WORLD CRIME HAS ALWAYS BEEN ASSOCIATED WITH POVERTY STATISTICS ON CRIME IN THE US MAKE THIS ASSOCIATION EVEN STARKER BECAUSE TRAGICALLY CRIMES OF RACISM BECOME CRIMES OF THE GHETTO I AM SURE MR LOURY WOULD BE SHOCKED BY THE NUMBER OF CRIMINAL ACTS THAT ARE PERPETRATED IN/ON THE GHETTO BY LEGITIMATE AUTHORITY DOES SEXUALLY PROMISCUOUS MEAN THOSE WHO ENGAGE IN SEXUAL ACTIVITY OR THOSE WHO BEAR THE CHILDREN WHO RESULT FROM THIS SEXUAL PROMISCUITY THE GHETTO MAY BE MORE PROLIFE THAN MR LOURY COULD IMAGINE ANYWAY SINCE HE IS PASSING STATISTICAL JUDGMENT I WOULD LIKE TO REMIND HIM THAT SEXUAL ACTIVITY AMONG TEENAGERS IN EUROPE IS AS PREVALENT AS IN THE US THE DIFFERENCE IS THAT EUROPEANS ARE LESS PRUDISH BIRTH CONTROL AND SEX EDUCATION HAVE MORE PROMINENCE UNRELIABLE UNTRUTHFUL UNFAITHFUL SEEM TO DESCRIBE THE US MORE APPROPRIATELY NOT JUST THE GHETTO MR LOURY NEED NOT LOOK BEYOND OUR LEADERS AND HIS INNER CIRCLE TO FIND PEOPLE WHO ARE OF QUESTIONABLE PERSONAL CHARACTER MORALITY AND VALUES 9303180077 930312 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 9303180076 930318 POLITICS & POLICY TEN POLITICAL DONORS HIT WITH FINES FOR VIOLATIONS OF CONTRIBUTION LIMITS BY EDWARD T POUND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL ELECTION COMMISSION SAID 10 WEALTHY SUPPORTERS OF POLITICAL CAMPAIGNS INCLUDING WALL STREET FIGURES HENRY KRAVIS AND RONALD PERELMAN AGREED TO PAY CIVIL FINES FOR VIOLATING CONTRIBUTION LIMITS THE FINES TOTALED 64000 OTHERS FINED INCLUDED DONALD TRUMP THE NEW YORK DEVELOPER HAROLD SIMMONS A TEXAS FINANCIER AND CORPORATE TAKEOVER SPECIALIST AND DWAYNE ANDREAS CHAIRMAN OF THE ILLINOIS AGRICULTURAL GIANT ARCHERDANIELSMIDLAND CO COMMISSION SPOKESMEN SAID EACH DONOR ADMITTED VIOLATING A FEDERAL LAW PROHIBITING PEOPLE FROM MAKING CONTRIBUTIONS OF MORE THAN 25000 IN AN ELECTION YEAR TO CANDIDATES AND COMMITTEES THE VIOLATIONS OCCURRED BETWEEN 1988 AND 1990 THE FEC SAID AND THE CONTRIBUTIONS WERE MADE TO BOTH DEMOCRATIC AND REPUBLICAN CANDIDATES AND ORGANIZATIONS THE PENALTIES AREN'T LIKELY TO DO MUCH DAMAGE TO THE WALLETS OF THE POLITICAL DONORS BUT THE ENFORCEMENT ACTION IS SURPRISING NONETHELESS THE SIXMEMBER ELECTION COMMISSION OFTEN HAS BEEN CRITICIZED AS AN INEFFECTIVE GOVERNMENT WATCHDOG THAT SELDOM INVESTIGATED OR PENALIZED POWERFUL POLITICAL INTERESTS OR DONORS FEC SPOKESMEN SAID MR TRUMP EXCEEDED CONTRIBUTION LIMITS BY THE LARGEST AMOUNT 47050 AND AGREED EARLIER THIS MONTH TO PAY A 15000 FINE TO THE US TREASURY AFTER THE COMMISSION THREATENED TO SUE HIM THE COMMISSION SAID IT INITIATED AN INQUIRY AFTER THE LOS ANGELES TIMES REPORTED IN APRIL 1990 THAT WEALTHY POLITICAL DONORS WERE MAKING ANNUAL CONTRIBUTIONS IN EXCESS OF THE 25000 LEGAL LIMIT THE NEWSPAPER SAID THAT OVER THREE YEARS THE FAMILIES OF MESSRS KRAVIS PERELMAN AND SIMMONS EACH MADE MORE THAN 250000 IN POLITICAL CONTRIBUTIONS MOST OF THOSE WENT TO PRESIDENT BUSH AND MEMBERS OF CONGRESS WHO WERE IN A POSITION TO AFFECT CORPORATE TAKEOVER LEGISLATION MR KRAVIS WIDELY KNOWN FOR THE LEVERAGED BUYOUT OF RJR NABISCO INC IN 1988 WAS FINED 8000 THE NEW YORK FINANCIER'S CONTRIBUTIONS EXCEEDED THE 25000 ANNUAL LIMIT BY 36961 HIS BROTHER RAYMOND KRAVIS AN OIL AND GAS CONSULTANT FROM OKLAHOMA WAS FINED 1000 FOR MAKING 6250 IN EXCESS CONTRIBUTIONS MR PERELMAN WHO TOOK CONTROL OF REVLON INC IN THE MID1980S WAS FINED 1800 THE BILLIONAIRE'S CONTRIBUTIONS EXCEEDED THE LIMIT BY 7500 ANOTHER REPORTED BILLIONAIRE MR SIMMONS WAS FINED THE LARGEST AMOUNT 19800 THE FEC SAID HIS CONTRIBUTIONS EXCEEDED THE LIMIT BY 44926 IN 1988 AND 1250 IN 1989 EARLY IN ITS INVESTIGATION THE FEC SAID IT ALSO FOUND REASON TO BELIEVE THAT MESHULAM RIKLIS ANOTHER TAKEOVER SPECIALIST HAD VIOLATED THE LAW BUT THE COMMISSION DECIDED AGAINST TAKING ACTION MR RIKLIS'S SON IRA MADE 6500 IN EXCESS DONATIONS AND PAID A 2500 FINE MR ANDREAS LONG A BACKER AND FRIEND OF PRESIDENTIAL AND CONGRESSIONAL CANDIDATES AND HIS WIFE DOROTHY AGREED TO PAY 8000 IN PENALTIES TOGETHER THEIR DONATIONS EXCEEDED THE LIMIT BY 18360 OTHERS WHO AGREED TO PAY FINES WERE WILLIAM LERACH A CALIFORNIA LAWYER AND CAROLINE ROSE HUNT DAUGHTER OF THE LATE OIL MAN HL HUNT ALL BUT MR AND MRS ANDREAS AND MR TRUMP HAVE PAID THEIR FINES THE FEC SAID FEDERAL LAW ALLOWS CONTRIBUTORS TO GIVE AS MUCH AS 2000 TO A CONGRESSIONAL CAMPAIGN 5000 ANNUALLY TO A POLITICAL ACTION COMMITTEE AND 20000 ANNUALLY TO A PARTY COMMITTEE THE FEC SAID THAT MONEY GIVEN TO A CANDIDATE IN NONELECTION YEARS IS CONSIDERED APPLICABLE TO THE ELECTION YEAR 9303180075 930318 GOVERNMENT TAKES A BIGGER STAKE IN PORGERA MINE BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL THE THREE COMPANIES THAT OWN MOST OF THE BIG PORGERA GOLD MINE IN PAPUA NEW GUINEA SAID THEY RELUCTANTLY AGREED TO HAND OVER TO THE GOVERNMENT AN ADDITIONAL INTEREST IN THE MINE PLACER DOME INC ONE OF THE MINE'S CORPORATE OWNERS INDICATED THAT THE GROUP HAD LITTLE CHOICE BUT TO GIVE UP THE ADDITIONAL STAKE AT UNDESIRABLE TERMS DESPITE AN EARLIER AGREEMENT THAT LIMITED THE GOVERNMENT'S OWNERSHIP INTEREST THE MOVE WHICH ANALYSTS SAY COULD HURT PAPUA NEW GUINEA'S ABILITY TO ATTRACT FOREIGN INVESTMENT FOR YEARS TO COME INCREASES THE GOVERNMENT'S STAKE IN THE MINE TO 25 FROM 10 EFFECTIVE LAST MARCH 1 THE THREE CORPORATE OWNERS EACH REDUCED THEIR INTEREST TO 25 FROM 30 PORGERA LAST YEAR PRODUCED 15 MILLION OUNCES OF GOLD VALUED AT ABOUT 500 MILLION AT TODAY'S MARKET PRICES THE CORPORATE OWNERS OF THE PORGERA MINE INCLUDE PLACER PACIFIC LTD A 76OWNED SUBSIDIARY OF PLACER DOME IN VANCOUVER BRITISH COLUMBIA RENISON GOLDFIELDS CONSOLIDATED LTD WHICH IS 44OWNED BY HANSON PLC OF BRITAIN AND HIGHLANDS GOLD LTD A 65OWNED UNIT OF AUSTRALIA'S MIM HOLDINGS LTD THE TRANSACTION HAS A NOMINAL PURCHASE PRICE OF ABOUT 136 MILLION BUT UNDER TERMS OF THE FINANCING PLACER DOME SAID IT UNDERSTANDS THAT THE PAPUA NEW GUINEA GOVERNMENT WILL PAY FOR ITS ADDITIONAL 15 INTEREST USING CASH FLOW GENERATED BY THAT SAME INTEREST ESSENTIALLY THE GOVERNMENT IS PAYING THE COMPANIES WITH THEIR OWN MONEY ANALYSTS SAY I DON'T THINK THAT'S A PURCHASE SAID BARRY ALLEN AN ANALYST AT DEACON BARCLAYS DE ZOETE WEDD LTD IN TORONTO IT'S REALLY JUST SEIZING AN ADDED INTEREST IN THE MINE AND GIVING A GRACE PERIOD BEFORE YOU TAKE THE CASH FLOW MR ALLEN ESTIMATED THE GOVERNMENT'S PURCHASE PRICE WAS ABOUT 20 BELOW WHAT THE COMPANIES COULD HAVE REALIZED BY SELLING THE STAKE ON THE MARKET IT'S THE BEST THAT WE COULD EXPECT UNDER THE CIRCUMSTANCES REMEMBER WE'RE NOT WILLING SELLERS SAID HUGH LEGGATT PLACER DOME'S SPOKESMAN HE SAID IT WILL TAKE AT LEAST 10 YEARS FOR THE GOVERNMENT'S PURCHASE PRICE TO BE PAID OFF THE PAPUA NEW GUINEA GOVERNMENT NEGOTIATED WITH A HEAVY HAND WHEN IT FIRST DECLARED ITS INTENTION TO RAISE ITS STAKE LAST FALL THE GOVERNMENT SUGGESTED THAT PRODUCTION AND PROFIT FROM THE MINE HAD EXCEEDED INITIAL EXPECTATIONS BECAUSE THE CORPORATE OWNERS HAD WITHHELD INFORMATION IN A STATEMENT THE GOVERNMENT SAID IT NOW IS SATISFIED THAT IT HAD NOT BEEN MISLED PAPUA NEW GUINEA ALREADY HOSTS SEVERAL BIG MINES AS WELL AS OFFSHORE OIL EXPLORATION THE IMPRESSION WAS THAT THE GOVERNMENT WAS BEGINNING TO OPEN THE COUNTRY UP TO FOREIGN INVESTORS TO DEVELOP ITS NATURAL RESOURCES NOW IN THE INTERMEDIATE TERM PEOPLE ARE GOING TO BE VERY CAUTIOUS ABOUT PUTTING FINANCIAL RESOURCES IN PAPUA NEW GUINEA SAID VAHID FATHI AN ANALYST AT KEMPER SECURITIES INC IN CHICAGO 9303180074 930318 CORRECTIONS & AMPLIFICATIONS SORRENTO CHEESE CO OF BUFFALO NY IS A UNIT OF BESNIER SA BASED IN LAVAL FRANCE IN A CHART ON CHEESE MARKETERS ACCOMPANYING A MARKETSCAN ARTICLE TUESDAY SORRENTO'S PARENT WAS MISIDENTIFIED AS SOURCE PERRIER SA BASED ON DATA PROVIDED BY INFORMATION RESOURCES INC BESNIER BOUGHT SORRENTO FROM SOURCE PERRIER LATE LAST YEAR HOFFMANNLA ROCHE INC NAMED DOMINIQUE L FAESSLER PRESIDENT OF THE ROCHE VITAMINS & FINE CHEMICALS NORTH AMERICAN DIVISION HE ALSO WAS NAMED TO THE BOARD AND EXECUTIVE COMMITTEE OF HOFFMANNLA ROCHE A SUBSIDIARY OF SWITZERLAND'S ROCHE HOLDING LTD IN YESTERDAY'S WHO'S NEWS COLUMN MR FAESSLER'S NAME WAS MISSPELLED AND IT WAS INCORRECTLY STATED THAT HE WAS NAMED TO ROCHE HOLDING'S BOARD 9303180073 930318 BRUSH WELLMAN PROFIT FORECAST CLEVELAND BRUSH WELLMAN INC SAID IT EXPECTS FIRSTQUARTER NET INCOME OF FIVE TO EIGHT CENTS A SHARE IN THE YEARAGO FIRST QUARTER THE COMPANY HAD NET INCOME OF 26 CENTS A SHARE BRUSH WELLMAN SAID SALES WILL PROBABLY BE ABOUT THE SAME AS A YEAR AGO BECAUSE SALES IN THE 1993 PERIOD OF ALL PRODUCTS EXCEPT METALLIC BERYLLIUM ARE RUNNING AHEAD OF 1992 LEVELS YEARAGO FIRSTQUARTER SALES WERE 678 MILLION THE MAKER OF BERYLLIUM ALLOYS AND CERAMICS AND OTHER SPECIALTY METALS SAID FIRSTQUARTER EARNINGS HAVE BEEN HURT BY WEAK AEROSPACE AND DEFENSE DEMAND FOR BERYLLIUM AND BY UNEXPECTED MARKET AND TECHNICAL DIFFICULTIES A COMPANY SPOKESMAN SAID ANALYSTS' PROFIT ESTIMATES RANGED FROM 11 CENTS A SHARE TO 18 OR 19 CENTS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY BRUSH WELLMAN GAINED 125 CENTS TO 14 9303180072 930318 TECHNOLOGY DANGEROUS LEVELS OF RADON EXIST IN SOME US SCHOOLS WASHINGTON NEARLY 3 OF THE NATION'S PUBLIC SCHOOLROOMS HAVE UNACCEPTABLY HIGH LEVELS OF RADON CONTAMINATION ACCORDING TO AN ENVIRONMENTAL PROTECTION AGENCY STUDY AS A RESULT 19 OF ALL PUBLIC SCHOOLS HAVE AT LEAST ONE ROOM WITH UNACCEPTABLY HIGH RADON LEVELS THE STUDY SAID THE SURVEY CONDUCTED DURING THE 19901991 SCHOOL YEAR WHICH HASN'T YET BEEN FORMALLY RELEASED BY THE EPA SAID THAT 27 OF THE CLASSROOMS IN A NATIONAL SAMPLING OF 927 RANDOMLY SELECTED PUBLIC SCHOOLS HAD LEVELS OF RADON CONTAMINATION AT OR ABOVE FOUR PICOCURIES PER LITER WHICH IS THE DANGER THRESHOLD SET BY THE EPA FOR HOMEOWNERS RADON AN INVISIBLE AND ODORLESS GAS PRODUCED BY URANIUM DECAY IS A CARCINOGEN ESTIMATED BY THE EPA TO CAUSE 7000 TO 30000 DEATHS EACH YEAR EXPOSURE TO RADON AT FOUR PICOCURIES PER LITER IS ESTIMATED BY THE EPA TO CAUSE CANCER DEATH FOR ONE PERSON IN 500 BASED ON THE ASSUMPTION THAT THE 500 PEOPLE SPEND 75 OF THEIR LIFETIMES CONTINUALLY EXPOSED AT THAT LEVEL 9303180071 930318 ACCOUNTING OFFICIALS TABLE PROPOSAL ON MARKET VALUE NEW YORK ACCOUNTING RULEMAKERS TABLED A PROPOSAL THAT WOULD HAVE FORCED BANKS AND INSURERS TO VALUE THEIR BONDS CLOSER TO MARKET VALUE THE POSTPONEMENT GIVES FINANCIAL INSTITUTIONS AT LEAST THREE MORE WEEKS TO LOBBY AGAINST THE RULE CHANGE COMPANIES ARGUE THE RULE WOULD LEAD TO INACCURATE PORTRAITS OF THEIR FINANCIAL HEALTH AND DISCOURAGE THEM FROM BUYING LONGTERM BONDS THE RULE WOULD FORCE COMPANIES TO VALUE THEIR FIXEDINCOME INVESTMENTS AT MARKET VALUES RATHER THAN THE PURCHASE PRICE MEANING COMPANIES WOULD HAVE TO MARK DOWN THEIR HOLDINGS WHENEVER INTEREST RATES RISE THUS A SPIKE IN RATES COULD MEAN A SUBSTANTIAL DECLINE IN A COMPANY'S NET WORTH THIS APPARENT INSTABILITY COULD SERIOUSLY JEOPARDIZE BOTH POLICYHOLDER AND PUBLIC CONFIDENCE IN OUR COMPANIES CONTENDS RICHARD SCHWEIKER PRESIDENT OF THE AMERICAN COUNCIL OF LIFE INSURANCE THE PROPOSAL BEFORE THE FINANCIAL ACCOUNTING STANDARDS BOARD FELL ONE VOTE SHORT OF PASSING OF THE SEVEN FASB BOARD MEMBERS THREE EXPRESSED RESERVATIONS ABOUT THE PROPOSAL FIVE VOTES ARE NEEDED FOR PASSAGE THE PROPOSAL WILL COME BEFORE THE BOARD AGAIN IN AS LITTLE AS THREE WEEKS SAID ROBERT WILKINS A PROJECT MANAGER FOR THE ACCOUNTING BOARD CLEARLY THE PROJECT IS NOT DEAD HE SAID 9303180070 930318 COUNTERPOINT NO RULE OF LAW NO FREE TRADE BY ANDREW REDING FREE TRADE WITH MEXICO IS A DESIRABLE GOAL BUT AS NEGOTIATIONS FOR SUPPLEMENTAL AGREEMENTS TO THE NORTH AMERICAN FREE TRADE AGREEMENT GET UNDER WAY WE SHOULD BE MINDFUL OF SERIOUS DANGERS FROM THE HANDSOFF APPROACH TO NAFTA ADVOCATED BY THE EDITORIAL BOARD OF THIS NEWSPAPER NOT THE LEAST OF THESE IS THE FACT THAT THE US HAS NEVER BEFORE ENTERED INTO A FREE TRADE AGREEMENT WITH A COUNTRY THAT LACKS DEMOCRATIC AND LEGAL STRUCTURES COMPARABLE TO OUR OWN DESPITE A DIVISION OF POWERS THAT SUPERFICIALLY RESEMBLES THAT OF THE US MEXICO HAS BEEN RUN BY A SINGLE PARTY FOR MORE THAN SIX DECADES THROUGH WHICH THE COUNTRY'S PRESIDENT HAS VIRTUALLY COMPLETE CONTROL OF THE CONGRESS AND THE COURTS THERE ARE NO CHECKS AND BALANCES ONE WILL SEARCH IN VAIN FOR A PRESIDENTIAL INITIATIVE TURNED DOWN BY CONGRESS OR FOR A DECISION BY THE SUPREME COURT LIMITING THE POWER OF THE CHIEF EXECUTIVE THIS IS NO MINOR POINT ONE SIMPLY CANNOT SPEAK OF THE RULE OF LAW AS LONG AS THE MEXICAN PRESIDENCY RETAINS ARBITRARY POWER OVER THE ECONOMIC AND POLITICAL LIFE OF THE NATION ARBITRARY EXECUTIVE AUTHORITY IS INCOMPATIBLE WITH GENUINELY FREE MARKETS WHICH PRESUPPOSE A LEVEL PLAYING FIELD ESTABLISHED THROUGH THE RULE OF LAW THAT IS WHY THE EUROPEANS FACED WITH A SIMILAR PROBLEM IN DEALING WITH AUTHORITARIAN INSTITUTIONS IN PORTUGAL SPAIN AND GREECE CONDITIONED THOSE COUNTRIES' ENTRANCE INTO THE EUROPEAN COMMUNITY ON THE PRIOR DEVELOPMENT OF GENUINE DEMOCRACIES THE EUROPEANS HAVE ALSO TAKEN THE LEAD IN DEVELOPING TRANSNATIONAL LEGAL GUARANTEES OF HUMAN RIGHTS AND DUE PROCESS VIRTUALLY ALL EUROPEAN COUNTRIES INCLUDING MOST OF THE NEWLY LIBERATED COUNTRIES OF EASTERN EUROPE HAVE BY NOW RATIFIED THE EUROPEAN CONVENTION ON HUMAN RIGHTS AND ACCEPTED THE BINDING JURISDICTION OF THE EUROPEAN COURT OF HUMAN RIGHTS BASED IN STRASBOURG THAT MEANS THAT EUROPEANS CAN NOW DO BUSINESS ALMOST ANYWHERE ON THE CONTINENT SECURE IN THE KNOWLEDGE THAT IF THEY ARE DENIED DUE PROCESS AT THE NATIONAL LEVEL THEY MAY APPEAL TO AN INTERNATIONAL COURT WHERE THEY WILL BE ASSURED A FAIR HEARING A SIMILAR OPPORTUNITY IS AT HAND IN THE AMERICAS THE AMERICAN CONVENTION ON HUMAN RIGHTS PROVIDES FOR THE OBSERVANCE OF BASIC CIVIL AND POLITICAL RIGHTS THROUGHOUT THE HEMISPHERE IT ENABLES ANY CITIZEN DENIED DUE PROCESS AT THE NATIONAL LEVEL TO PRESENT HIS OR HER CASE TO THE INTERAMERICAN COMMISSION ON HUMAN RIGHTS IN WASHINGTON SIGNIFICANTLY THE CONVENTION HAS ALREADY BEEN RATIFIED BY MEXICO AND EVERY OTHER LATIN AMERICAN COUNTRY EXCEPT CUBA THE ONLY PROBLEM IS THAT THE US HAS NOT YET RATIFIED THE TREATY IT HAS BEEN PENDING BEFORE THE SENATE SINCE BEING SIGNED BY PRESIDENT CARTER IN 1979 THERE IS ANOTHER TREATY MOTHBALLED IN THE SENATE THAT COULD HELP LEVEL THE PLAYING FIELD ON THE ISSUE OF LABOR RIGHTS AND STANDARDS THE INTERNATIONAL COVENANT ON ECONOMIC SOCIAL AND CULTURAL RIGHTS WAS LIKEWISE SIGNED BY PRESIDENT CARTER IN 1979 AMONG OTHER PROVISIONS IT GUARANTEES THE RIGHT TO ORGANIZE PROHIBITS CHILD LABOR SETS MAXIMUM HOURS FOR THE WORK DAY AND REQUIRES ATTENTION TO OCCUPATIONAL HEALTH AND SAFETY FURTHERMORE SINCE IT HAS ALREADY BEEN RATIFIED BY MEXICO THE MEXICAN GOVERNMENT CANNOT REASONABLY OBJECT TO HAVING ITS PROVISIONS APPLY TO TRADE AND INVESTMENT UNDER NAFTA HAVING ONCE SETTLED ON COMMON INTERNATIONAL STANDARDS THAT STILL LEAVES THE QUESTION OF ENFORCEMENT MEXICO HAS BEEN VERY GENEROUS IN ENDORSING HIGH STANDARDS OF HUMAN RIGHTS BOTH IN ITS DOMESTIC LEGISLATION AND IN INTERNATIONAL TREATIES YET ITS ENFORCEMENT HAS BEEN SPOTTY AT BEST AND SUBJECT TO WHOLESALE NEGLECT AT WORST THE CULPRIT I WOULD SUGGEST IS THE LACK OF INSTITUTIONAL CHECKS AND BALANCES INCLUDING FREE ELECTIONS AND INDEPENDENT LEGISLATURES AND COURTS SO ESSENTIAL TO THE RULE OF LAW AN INTERAMERICAN COURT COULD HELP MEXICAN REFORMERS IN THEIR EFFORTS TO REMEDY THESE PROBLEMS BY PROVIDING RECOURSE WHERE NECESSARY TO AN INTERNATIONAL COURT WHOSE DECISIONS WOULD HAVE THE BINDING FORCE OF LAW FORTUNATELY SUCH A COURT ALREADY EXISTS IN THE FORM OF THE INTERAMERICAN COURT OF HUMAN RIGHTS IN SAN JOSE COSTA RICA CREATED TO HELP ENFORCE THE TERMS OF THE AMERICAN CONVENTION THE COURT RELIES FOR ITS AUTHORITY ON DECLARATIONS BY MEMBER STATES THAT THEY ACCEPT ITS JURISDICTION MOST LATIN AMERICAN COUNTRIES HAVE DONE SO MEXICO HAS NOT THAT FACT PRESENTS AN UNUSUAL OPPORTUNITY BY FIRST ASKING THE SENATE TO RATIFY THE AMERICAN CONVENTION THEN ASKING CANADA AND MEXICO TO JOIN THE US IN ACCEPTING THE JURISDICTION OF THE INTERAMERICAN COURT PRESIDENT CLINTON COULD SECURE A HEMISPHERIC SYSTEM OF RESPECT FOR HUMAN RIGHTS AND DUE PROCESS THAT WOULD PROVIDE A SOLID INTERNATIONAL LEGAL FOUNDATION FOR THE SUPPLEMENTAL AGREEMENTS TO NAFTA NOW BEING NEGOTIATED AND FOR THE EXPANSION OF FREE TRADE AND INVESTMENT THROUGHOUT THE AMERICAS MR REDING DIRECTS THE NORTH AMERICA PROJECT OF THE WORLD POLICY INSTITUTE AT THE NEW SCHOOL FOR SOCIAL RESEARCH 9303180069 930318 WORLD MARKETS TOKYO STOCKS RALLY PRICES END DOWN IN LONDON ON TAX PLAN AND IN FRANKFURT ON RATE SCENARIO A WALL STREET JOURNAL NEWS ROUNDUP A RALLY IN TOKYO'S TELECOMMUNICATIONS SECTOR HEATED UP THE STOCK MARKET WEDNESDAY AND THE BENCHMARK INDEX ADVANCED TO ITS HIGHEST LEVEL IN ALMOST SIX MONTHS LONDON STOCKS FELL BROADLY IN RESPONSE TO TAX MOVES THAT WILL CUT DIVIDEND FLOWS TO SOME INSTITUTIONAL INVESTORS THOUGH THE CORRECTION APPEARED TO HAVE RUN ITS COURSE AND A REBOUND WAS EXPECTED TODAY IF GERMANY LOWERS INTEREST RATES FRANKFURT SHARE PRICES ENDED BROADLY LOWER ON TECHNICALLY BASED SELLING AND PROFITTAKING AHEAD OF TODAY'S MEETING OF THE GERMAN BUNDESBANK'S POLICYMAKING GROUP THE CENTRAL BANK IS EXPECTED TO CUT KEY INTEREST RATES ONEHALF POINT THE DISCOUNT AND LOMBARD RATES NOW ARE AT 8 AND 9 RESPECTIVELY BUT IS LIKELY TO REMAIN WARY ABOUT THE PACE OF MONETARY EASING IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLUMPED 11788 POINTS TUESDAY JUMPED 20507 OR 11 TO 1817337 A CLOSING LEVEL IT HADN'T SEEN SINCE SEPT 25 ON THURSDAY THE NIKKEI SPURTED 49152 POINTS TO CLOSE THE MORNING SESSION AT 1866489 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES COMPARED WITH 3459 MILLION SHARES ON TUESDAY GAINERS SWAMPED LOSERS 757257 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 889 POINTS TUESDAY RALLIED 2094 OR 16 TO 136565 AFTER MOVING UP FROM THE DAY'S LOW OF 1795345 THE NIKKEI HIT ITS PEAK OF 1824270 ABOUT FIVE MINUTES BEFORE THE MARKET CLOSED NIPPON TELEGRAPH & TELEPHONE THE MOST HEAVILY CAPITALIZED ISSUE ON THE EXCHANGE ZOOMED 10000 YEN OR 12 TO 812000 YEN 694179 AMID SPECULATION THAT THE MINISTRY OF POSTS AND TELECOMMUNICATIONS WILL APPROVE RATE INCREASES ON PUBLIC TELEPHONES THROUGHOUT JAPAN NTT SHARES HAVE RISEN 32 IN THE PAST TWO WEEKS ALSO ON ANTICIPATED EARNINGS IMPROVEMENTS THE NTT STRENGTH BOOSTED SHARES ACROSS THE BOARD WITH SECTORS THAT HAD LAGGED ATTRACTING SOME OF THE BRISKEST BUYING RANGING FROM INDIVIDUALS TO INSTITUTIONS SEVERAL EXPORTORIENTED SHARES THOUGH FLINCHED AS THE YEN FLEXED ITS MUSCLE AGAINST THE DOLLAR DESPITE A CONTINUING DEARTH OF FRESH INCENTIVES AND A LIMPING JAPANESE ECONOMY MARKET PARTICIPANTS DIDN'T FEAR A SLIDE AND INDEED EXPECTED THE GOVERNMENT TO UNVEIL NEW STIMULUS MEASURES SOON IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SKIDDED 294 POINTS OR 1 TO 28899 WITH 76 ISSUES FALLING AND 21 RISING THE FT 30STOCK INDEX SHED 243 POINTS OR 11 TO 22490 VOLUME WAS 6717 MILLION SHARES COMPARED WITH 492 MILLION SHARES A DAY EARLIER THE BRITISH BUDGET STATEMENT PRESENTED TUESDAY INCLUDED AN ITEM TO REDUCE THE BURDEN OF THE ADVANCE CORPORATION TAX ON FOREIGN EARNINGS TO 20 FROM 25 BUT TO PARE TAX CREDITS ON DIVIDEND INCOME BY FIVE PERCENTAGE POINTS OTHERWISE THOUGH THE MARKET WAS GENERALLY BULLISH ABOUT THE TAX AND SPENDING PROPOSALS IN THE BUDGET FOR THE FISCAL YEAR STARTING APRIL 1 IN FRANKFURT THE DAX 30STOCK INDEX FELL 1275 POINTS TO 168508 FOR ITS FOURTH CONSECUTIVE LOSS ENDING JUST FRACTIONALLY ABOVE THE DAY'S LOW OF 168434 TOMORROW'S SOCALLED TRIPLEWITCHING HOUR ON THE GERMAN FUTURES EXCHANGE PUT SELLING PRESSURE ON THE STOCK MARKET YESTERDAY PARTICIPANTS LOWERED THEIR HOPES BY EXPECTING THE HALFPOINT CUT IN GERMAN RATES EARLIER AFTER THE GOVERNMENT AGREED ON A FINANCING PACT TO REBUILD EASTERN GERMANY A FULL PERCENTAGEPOINT REDUCTION IN INTEREST RATES HAD BEEN EXPECTED THE SMALLER RATE CUT WAS ALREADY REFLECTED IN STOCK PRICES AND IF IT MATERIALIZES PROFITTAKING COULD SET IN BUT IF RATES ARE LEFT UNCHANGED EQUITY PRICES ARE LIKELY TO FALL ON MARKET DISAPPOINTMENT IN PARIS PRICES FELL UNDER PRESSURE FROM NERVOUSNESS ABOUT THE OUTCOME OF TODAY'S GERMAN CENTRAL BANK MEETING ON LENDING RATES AMSTERDAM STOCKS STRENGTHENED HELPED BY A SLIGHTLY FIRMER DOLLAR AND SOME FAVORABLE CORPORATE EARNINGS THOUGH GAINS WERE TRIMMED BY LATE PROFITTAKING AND OPTIONS MARKET POSITIONSETTLING IN MILAN SHARES FELL BROADLY AFTER HEAVY SELLING OF BLUE CHIPS BY SOME BROKERAGE FIRMS ON BEHALF OF US INVESTMENT FUNDS BUT PRICES DID RECOVER SOME OF THEIR LOSSES IN LATE ACTIVITY MADRID STOCKS EASED AS PARTICIPANTS AWAITED TODAY'S GERMAN RATE ACTION STOCKHOLM EQUITIES SHED EARLY GAINS FROM POSITIVE SWEDISH POLITICAL NEWS TO CLOSE LOWER ON GERMAN RATE ANXIETY A FACTOR THAT ALSO PUSHED STOCKS DOWN IN ZURICH SYDNEY SHARES ADVANCED TO A NINEMONTH HIGH ON POSTELECTION RELIEF CONFIRMATION THAT LOWER AUSTRALIAN INTEREST RATES WILL BE SOUGHT AND A SWING BY INVESTORS TOWARD DIVIDENDPAYING STOCKS AS FIXEDINTEREST YIELDS DECLINE IN HONG KONG DESPITE AN EXTRAORDINARY LATE REBOUND STOCKS FINISHED LOWER PRICES CLAWED BACK UP AFTER TRADERS WERE REASSURED BY COMMENTS BY A CHINESE OFFICIAL ABOUT THE SINOBRITISH DISPUTE INVOLVING THE TERRITORY'S FUTURE POLITICAL STRUCTURE SINGAPORE STOCKS ROSE THOUGH PRICES WERE OFF THE DAY'S PEAKS AFTER PROFITTAKING EMERGED IN LATE DEALINGS TAIPEI EQUITIES CLIMBED LED BY A REBOUND FOR FINANCE ISSUES IN SEOUL STOCKS SURGED IN A POWERFUL RALLY THAT WAS VIEWED AS HAVING MUCH FURTHER MOMENTUM ALSO FANNING OPTIMISM WERE THE SOUTH KOREAN GOVERNMENT'S MOVES TO BOOST THE ECONOMY AND NEWS OF LOWERTHANEXPECTED PUNITIVE TARIFFS IMPOSED BY THE US GOVERNMENT AGAINST SOUTH KOREANMADE MEMORY CHIPS SENT ELECTRONICS SHARES SOARING AMONG CORPORATE DEVELOPMENTS IN FRANKFURT BAYER DECLINED 19 MARKS TO 27120 MARKS 16313 OFFERING FURTHER DETAILS ON ITS 1992 RESULTS THE CHEMICAL COMPANY SAID PROFIT FELL 16 TO 156 BILLION MARKS 9383 MILLION FROM A YEAR EARLIER ON A 28 DROP IN SALES TO 412 BILLION MARKS IN THIS YEAR'S FIRST TWO MONTHS BAYER SAID SALES SLUMPED 11 AND EARNINGS CONTINUED TO WEAKEN AND PREDICTED A RESTRAINED OUTLOOK FOR 1993 IN AMSTERDAM GROLSCH BIERBROUWERIJEN PLUMMETED 540 GUILDERS OR 26 TO 2045 GUILDERS 10945 THE BREWER'S 1992 PROFIT ROSE 36 TO 434 MILLION GUILDERS 232 MILLION BUT THIS WAS FAR LESS THAN THE MARKET HAD EXPECTED EARNINGS WERE PRESSURED BY HIGHER FINANCING COSTS AND EFFECTS OF CURRENCY FLUCTUATIONS GROLSCH ALSO SAID IT PLANNED TO INCREASE ITS DIVIDEND 4 TO 540 GUILDERS A SHARE AND TO SPLIT ITS SHARES 5 FOR 1 HOOGOVENS & STAALFABRIEKEN RALLIED 23 OR 92 TO 2730 THE STEELMAKER'S 1992 NET LOSS WIDENED TO 595 MILLION GUILDERS FROM THE YEAREARLIER DEFICIT OF 51 MILLION GUILDERS REFLECTING A HUGE RISE IN NET EXTRAORDINARY CHARGES AS EXPECTED HOOGOVENS ALSO OMITTED ITS 1992 DIVIDEND 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 9303180068 930318 SEAGRAM NET FELL 77 IN ITS FOURTH PERIOD LOSS POSTED FOR YEAR NEW YORK SEAGRAM CO SAID FISCAL FOURTHQUARTER NET INCOME FELL 77 AND THE COMPANY POSTED A FULLYEAR LOSS OF 900 MILLION BECAUSE OF A PREVIOUSLY ANNOUNCED ACCOUNTING CHARGE BUT OPERATING PROFIT ROSE 5 TO 252 MILLION EVEN AS SALES SLIPPED 27 TO 2 BILLION FROM 206 BILLION BECAUSE OF THE SALE OF SEVEN SPIRITS BRANDS IN 1991 FOR THE QUARTER ENDED JAN 31 SEAGRAM REPORTED NET OF 46 MILLION OR 12 CENTS A SHARE COMPARED WITH 197 MILLION OR 52 CENTS A SHARE A YEAR EARLIER THE MOST RECENT QUARTER'S NET WAS REDUCED BY A CHARGE OF 100 MILLION OR 27 CENTS A SHARE TO COVER A CHANGE IN ACCOUNTING FOR HEALTHCARE COSTS THE PERSHARE FIGURES REFLECT A 4FOR1 STOCK SPLIT THAT TOOK EFFECT IN JUNE FOR THE YEAR THE COMPANY POSTED A NET LOSS OF 900 MILLION OR 238 A SHARE DUE TO THE 157 BILLION ONETIME CHARGE FOR THE ADOPTION OF A HEALTHCARE ACCOUNTING CHANGE AND A TAX ACCOUNTING CHANGE EXCLUDING THE CHARGE PROFIT INCREASED 96 TO 148 A SHARE COMPARED WITH 135 A SHARE LAST YEAR OPERATING PROFIT WAS UP 21 TO 776 MILLION COMPARED WITH 760 MILLION LAST YEAR SALES FOR THE YEAR ENDED JAN 31 FELL 38 TO 610 BILLION COMPARED WITH 634 BILLION LAST YEAR SEAGRAM'S SPIRITS BUSINESS SHOWED A 14 INCREASE IN PROFIT FROM CONTINUING OPERATIONS IN THE FISCAL YEAR HOWEVER IN THE US EXCLUDING ACCOUNTING CHARGES THE COMPANY'S TROPICANA GROUP POSTED A 14 INCREASE IN OPERATING INCOME FOR THE YEAR TO 133 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SEAGRAM CLOSED AT 27375 A SHARE DOWN 125 CENTS 9303180067 930318 FINANCING BUSINESS ANADARKO PETROLEUM CORP ANADARKO PETROLEUM CORP HOUSTON SAID IT PLANS TO SELL 100 MILLION OF 675 NOTES DUE 2003 PROCEEDS WILL BE USED TO REFINANCE CERTAIN DEBT THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID THE OFFERING WILL BE COMANAGED BY KIDDER PEABODY & CO AND FIRST BOSTON CORP 9303180066 930318 TECHNOLOGY & MEDICINE OF MICE AND MEN CELL GENESYS ADVANCES CREATION OF DISEASEFIGHTING ANTIBODIES BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL FOSTER CITY CALIF SCIENTISTS AT CELL GENESYS INC CLAIMED MAJOR PROGRESS TOWARD PRODUCING TOTALLY HUMAN MONOCLONAL ANTIBODIES TO FIGHT DISEASE COMMERCIALLY AVAILABLE MONOCLONAL ANTIBODIES MIMIC THE ONES HUMANS PRODUCE IN THAT THEY ARE VERY SPECIFIC PROTEINS THAT HOME IN ON DISEASES HOWEVER SINCE THEY ARE MANUFACTURED IN MICE THEIR USE IN PEOPLE HAS BEEN LIMITED BECAUSE THE MOUSE PROTEINS PROVOKE ALLERGIC REACTIONS IN PEOPLE BUT NOW CELL GENESYS SAYS IT IS CLOSE TO GETTING AROUND THAT PROBLEM CELL GENESYS SENIOR SCIENTIST AYA JAKOBOVITS AND HER COLLEAGUES HAVE USED A TECHNOLOGY CALLED GENETIC TARGETING TO CREATE TWO STRAINS OF MICE ONE STRAIN THAT IS GENETICALLY PURGED OF ITS MOUSE IMMUNE SYSTEM AND ANOTHER STRAIN ENDOWED WITH A LARGE HUMAN GENE WHEN BRED TOGETHER THE OFFSPRING OF SUCH MICE SHOULD PRODUCE PURELY HUMAN ANTIBODIES LATER THIS YEAR THE COMPANY PREDICTS REPORTS ON THE WORK ARE BEING PUBLISHED THIS WEEK IN THE BRITISH SCIENTIFIC JOURNAL NATURE AND THE PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES GENESYS' EXECUTIVES SAID THE COMPANY'S FIRST MONOCLONAL ANTIBODIES MAY BE MADE AGAINST INFLAMMATORY DISEASE BUT THEY ADDED THE APPROACH OFFERS PROMISE FOR A NUMBER OF CHRONIC CONDITIONS SUCH AS ARTHRITIS AUTOIMMUNE DISEASES CANCER AND TRANSPLANT REJECTION TO CREATE ITS MICE THE COMPANY EMPLOYS GENETIC TARGETING WHICH UNLIKE CONVENTIONAL CLONING EMPLOYED IN STANDARD BIOTECHNOLOGY EXPLOITS A NATURAL FORM OF GENESPLICING KNOWN AS HOMOLOGOUS RECOMBINATION WHICH THE COMPANY SAYS IS SIMPLER IN ITS MOUSE WORK CELL GENESYS ALSO USED ARTIFICIAL CHROMOSOMES DERIVED FROM YEAST AS A CARRIER TO INTRODUCE A VERY LARGE PIECE OF HUMAN DNA INTO MOUSE EMBRYO CELLS IN THIS CASE THE INSERTED DNA WAS SIMPLY A MARKER GENE CARRYING THE BLUEPRINT FOR THE HUMAN ENZYME HPRT CELL GENESYS REPORTED THE HPRT GENE WAS PERMANENTLY INSTALLED AND FUNCTIONING IN THE MICE THE NEXT STEP WILL BE TO INSERT THE GENES FOR A WIDE REPERTOIRE OF HUMAN ANTIBODIES SKEPTICAL OF ANY BREAKTHROUGH CLAIMS JIM MCCAMANT EDITOR OF THE MEDICAL TECHNOLOGY STOCK LETTER SAID GREAT STRIDES TOWARD HUMANIZING ANTIBODIES ALREADY HAVE BEEN MADE BY SCRIPPS RESEARCH INSTITUTE IN LA JOLLA CALIF AS WELL AS BY COMPANIES SUCH AS PROTEIN DESIGN LABS INC MOUNTAIN VIEW CALIF AND GENENTECH INC SOUTH SAN FRANCISCO WE HAVE A SLEW OF THINGS GOING ON IN THIS FIELD MR MCCAMANT SAID HOWEVER MOST OF THE RESEARCH HAS INVOLVED TAKING MONOCLONAL ANTIBODIES MADE IN MICE AND TINKERING WITH THEM BY ATTACHING HUMAN PROTEINS AFTER THE FACT UNIVERSAL TCELLS AND AIDS DANIEL CAPON VICE PRESIDENT OF RESEARCH ACKNOWLEDGED THAT THERE'S INTENSIVE EFFORT TO HUMANIZE EXISTING MOUSE MONOCLONALS BUT HE PREDICTED WE'LL MAKE IT OBSOLETE WE BELIEVE WHEN THE TECHNOLOGY HAS BEEN FULLY REALIZED THE CHOICE WILL BE CLEAR IN AN EDITORIAL ACCOMPANYING THE NATURE PAPER UNIVERSITY OF UTAH SCIENTIST MARIO CAPECCHI PRAISED THE CELL GENESYS REPORT ALONG WITH RESEARCH FROM THE GERMAN CANCER RESEARCH CENTER IN HEIDELBERG AS AN EXCITING NEW DEVELOPMENT FOR THE MOLECULAR ANALYSIS OF MAMMALIAN BIOLOGY THE COMPANY ADDED ITS MOUSE MODEL OPENS UP NEW OPPORTUNITIES TO STUDY THE STRUCTURE AND FUNCTION OF GENES IN 1991 CELL GENESYS TEAMED UP WITH A RESEARCH UNIT OF JAPAN TOBACCO INC TO CREATE A 5050 JOINT VENTURE CALLED XENOTECH TO MARKET PURELY HUMAN MONOCLONALS FROM ENGINEERED MICE THE JAPANESE FIRM SO FAR HAS PLEDGED AS MUCH AS 24 MILLION IN FUNDING THE PROGRAM ALSO ENVISIONS THE USE OF ITS TARGETING TECHNOLOGY TO PRODUCE HUMAN PROTEINS AS WELL AS UNIVERSAL TRANSPLANT CELLS FOR CELLULAR REPLACEMENT THERAPIES WHICH WILL NOT BE REJECTED BY THE RECIPIENT'S IMMUNE SYSTEM THE FIRST TEST OF THE TRANSPLANT CELLS WILL COME LATER THIS YEAR WHEN CELL GENESYS PLANS TO LAUNCH HUMAN TRIALS OF A UNIVERSAL TCELL TREATMENT THAT WILL INFUSE AIDS PATIENTS WITH SPECIALLY ENGINEERED WHITE BLOOD CELLS KNOWN AS KILLER CELLS IN AN EFFORT TO ATTACK THE FATAL VIRUS 9303180065 930318 WARREN BUFFETT SENDS NOTE OF CAUTION TO BERKSHIRE HOLDERS ALL GOOD THINGS MUST END RETURN ON S&P 500 INDEX TO BE LESS' INVESTOR SAYS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL WARREN BUFFETT IS CLIMBING OUT ON A LIMB AND HE'S LOOKING LIKE A BEAR MR BUFFETT THE WIDELY WATCHED INVESTOR FROM OMAHA NEB IS TELLING SHAREHOLDERS OF HIS BERKSHIRE HATHAWAY INC THAT HE AND PARTNER CHARLES MUNGER ARE VIRTUALLY CERTAIN THE RETURN ON THE STANDARD AND POOR'S 500STOCK INDEX OVER THE NEXT 10 YEARS WILL BE FAR LESS THAN THAT OF THE PAST 10 YEARS THE PREDICTION ISN'T SO WILD AFTER A DECADE OF SMART GAINS MANY STOCK MARKET ANALYSTS WOULD AGREE BUT IT'S A BIT UNUSUAL FOR MR BUFFETT WHO HAS MADE A HABIT OF NOT PREDICTING STOCK MARKET MOVEMENTS WE'VE LONG FELT HE EXPLAINS THAT THE ONLY VALUE OF STOCK FORECASTERS IS TO MAKE FORTUNE TELLERS LOOK GOOD THE FORECAST COMES IN MR BUFFETT'S ANNUAL LETTER TO SHAREHOLDERS OF BERKSHIRE HATHAWAY THE HOLDING COMPANY FOR AN ARRAY OF BUSINESSES AND INVESTMENTS THE REASON FOR HIS CAUTIOUS OUTLOOK ON THE MARKET MR BUFFETT WRITES IN THE LETTER MAILED TODAY IS THAT STOCKS CANNOT FOREVER OVERPERFORM THEIR UNDERLYING BUSINESSES AS THEY HAVE SO DRAMATICALLY DONE FOR SOME TIME BERKSHIRE HATHAWAY AND MR BUFFETT WHO OWNS 41 OF THE COMPANY HAVE BEEN AMONG THE BIGGEST BENEFICIARIES OF THE BULL MARKET THE VALUE OF BERKSHIRE'S LONGTIME INVESTMENT IN INSURER GEICO CORP FOR EXAMPLE JUMPED 63 LAST YEAR TO 223 BILLION THE HOLDING COMPANY ALSO HAD STRONG GAINS LAST YEAR IN ITS MORE RECENT INVESTMENTS IN BANKER WELLS FARGO & CO AND GENERAL DYNAMICS CORP THE DEFENSE COMPANY WE WERE LUCKY IN OUR GENERAL DYNAMICS PURCHASE MR BUFFETT WRITES SHEDDING LIGHT ON A TOPIC BERKSHIRE DECLINED TO DISCUSS LAST YEAR HE SAYS HE ORIGINALLY INTENDED TO HOLD THE STOCK FOR A SMALL PROFIT OVER A SHORT PERIOD BUT CHANGED HIS MIND AFTER EXAMINING THE CLEARLY ARTICULATED AND RATIONAL STRATEGY OF WILLIAM ANDERS THE CHIEF EXECUTIVE WHO WAS SELLING OFF GENERAL DYNAMICS'S NONCORE BUSINESSES IN SHORT ORDER I DUMPED MY ARBITRAGE THOUGHTS AND DECIDED THAT BERKSHIRE SHOULD BECOME A LONGTERM INVESTOR WITH BILL THAT 15 INVESTMENT IN THE AEROSPACE COMPANY MADE LAST SUMMER AT A COST OF 3124 MILLION WAS VALUED AT 4508 MILLION AT YEAR END MR BUFFETT CONFESSES TO LESS STELLAR RESULTS IN HIS MOVES TO PURCHASE LARGE BLOCKS OF PREFERRED STOCK DIRECTLY FROM MANAGEMENT OF VARIOUS COMPANIES A TACTIC NOT AVAILABLE TO THE AVERAGE INVESTOR CRITICS NOTE ALTHOUGH MR BUFFETT SAYS THOSE DEALS MET HIS GOAL OF RETURNS MODESTLY ABOVE THOSE OF MOST FIXEDINCOME PORTFOLIOS WE WOULD HAVE DONE BETTER IF WE COULD HAVE PUT THE MONEY THAT WENT INTO OUR NEGOTIATED TRANSACTIONS INTO OPENMARKET PURCHASES OF THE TYPE WE LIKE HE ARGUES THAT BERKSHIRE'S HUGE SIZE AND THE MARKET'S STRENGTH MADE THAT DIFFICULT HE STOPS SHORT HOWEVER OF SAYING HE WON'T MAKE ANY MORE NEGOTIATED PURCHASES AMONG THOSE PURCHASES SO FAR MR BUFFETT ESTIMATES BERKSHIRE HAS RELATIVELY SMALL PROFITS AS OF YEAR END IN CONVERTIBLE PREFERREDS ISSUED BY SALOMON INC AND CHAMPION INTERNATIONAL CORP AND A NEARLY 90 MILLION LOSS IN USAIR GROUP INC'S CONVERTIBLE PREFERRED AS HE HAS IN THE PAST THE BERKSHIRE CHAIRMAN PRAISES THE MANAGEMENT OF USAIR BUT NOT THAT OF OTHER AIRLINES YES I KNEW THE INDUSTRY WOULD BE RUGGEDLY COMPETITIVE BUT I DID NOT EXPECT ITS LEADERS TO ENGAGE IN PROLONGED KAMIKAZE BEHAVIOR MR BUFFETT WRITES REFERRING TO COSTLY FARE WARS 9303180064 930318 ADVERTISING OSCAR MAYER SHYLY TRIES HUMOR TO PITCH ITS PORK BY KEVIN GOLDMAN PEOPLE MAY BE WORRYING LESS ABOUT THEIR HEALTH AND PIGGING OUT ON BACON BUT OSCAR MAYER FOODS SEEMS DOWNRIGHT SHY ABOUT HOW IT SHOULD GO ABOUT ADVERTISING THE PORKY PRODUCT AFTER YEARS OF IGNORING BACON IN FAVOR OF ADVERTISING ITS LEANER LINE OF COLD CUTS OSCAR MAYER IS CONTEMPLATING A NEW CAMPAIGN TRUMPETING ITS BACON AS 16 SKINNIER THAN RIVAL BRANDS YET HOW SHOULD A COMPANY MARKET A PRODUCT THAT IS ESSENTIALLY UNHEALTHFUL BACON ISN'T EXACTLY MARLBORO ANOTHER BRAND IN THE COLLECTION OF OSCAR MAYER PARENT PHILIP MORRIS COS WITH BADFORYOU IMAGE PROBLEMS BUT IT IS AFTER ALL FATLADEN GREASY AND ARTERYCLOGGING SO AD AGENCY J WALTER THOMPSON IS COAXING CLIENT OSCAR MAYER INTO THE NOTION THAT THE WAY INTO A HEALTHCONSCIOUSBUT NOT NECESSARILY ALL THAT DISCIPLINEDCONSUMER'S HEART IS HUMOR IN A HIGHLY UNUSUAL TWIST ON MADISON AVENUE THE WPP GROUP SHOP HAS GONE SO FAR AS TO FUND THE PRODUCTION ITSELF OF A NEW HALFMINUTE SPOT EXTOLLING THE BACON BRAND THOMPSON'S CHICAGO OFFICE CREATED THE COMMERCIAL WHICH FEATURES TWO AGING COWBOYS ON HORSEBACK DISCUSSING THE BACON THEY ATE FOR BREAKFAST THE SHOP PIGGYBACKED THE SHOOT IN THE DESERTLIKE SETTING OF PALMDALE CALIF OUTSIDE LOS ANGELES NEAR WHERE IT WAS ALREADY FILMING ANOTHER SPOT FOR A SECOND CLIENT EVEN THOUGH IT DIDN'T HAVE TO CONTRIBUTE A CENT TO THE COMMERCIAL'S PRODUCTION HOWEVER OSCAR MAYER IS DECIDEDLY RELUCTANT IN FACT IT IS HAVING J WALTER THOMPSON QUIETLY TEST THE SPOT THROUGH A RESEARCH COMPANY IF THE RESULTS ARE POSITIVE THE COMMERCIAL WILL AIR FIRST REGIONALLY THEN NATIONALLY IN THE SPOT TWO COWBOYS ONE OVERWEIGHT AND THE OTHER SLIM BUT BOTH OF THEM CREAKY AND ANCIENT ARE LUMBERING ON HORSEBACK THROUGH THE DESERT SLIM TALKS ABOUT HOW TASTY THE BACON WAS YUP SAYS THE CHUBBY COWBOY THAT'S 16 MORE LEAN THAN YOUR AVERAGE BACON SIXTEEN PERCENT SLIM ASKS ADDING WHY THAT'S IN KEEPING WITH TODAY'S HEALTHY AND MORE ACTIVE LIFESTYLES AFTER PLODDING ALONG FOR A MOMENT THE SLIM FELLA PERKS UP AND ASKS A GAME OF RACQUETBALL LATER ON HIS PARDNER AGREES AND TO RESERVE A COURT PULLS A CELLULAR TELEPHONE OUT OF HIS BRITCHES AS THE TWO RIDE OFF WELL INTO THE SUNSET BUT OSCAR MAYER IS AS NERVOUS ABOUT THE COMMERCIAL AS A PIG IN A POKE THIS IS NEW TERRITORY TO THEM SAYS STEVE DAVIS EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF JWT'S CHICAGO OFFICE OSCAR MAYER HASN'T USED ADULT HUMOR BEFORE INSTEAD CHILDREN HAVE ALWAYS CARRIED THE DAY THE MEAT PROCESSOR IS BEST REMEMBERED FOR KIDDIES BELTING OUT THE SONG I WISH I WERE AN OSCAR MAYER WIENER AND MY BALOGNA HAS A FIRST NAME IT'S OSCAR THIS SPOT IS CLEARLY A DEPARTURE AND ONE THAT OSCAR MAYER ISN'T USED TO RUNNING BECAUSE THERE ARE NO KIDS TO BE SEEN SAYS MR DAVIS RICK SEARER VICE PRESIDENT AND GENERAL MANAGER OF OSCAR MAYER'S RETAIL BRANDS DIVISION SAYS THAT OF ALL ADVERTISING PRIORITIES FACING THE COMPANY BACON ISN'T ONE OF THEM TRADITIONALLY HE SAYS OSCAR MAYER HAS INSTEAD RELIED ON COUPONS AND OTHER PROMOTIONS TO EXPAND ITS SHARE OF THE BACON BUSINESS HOWEVER WE'RE NOW EXPLORING ADVERTISING AND WILL USE IT IF WE FIND IT COULD GROW OUR BUSINESS HE SAYS AD EXECUTIVES AT THOMPSON CONDUCTED RESEARCH SHOWING THAT BACON IS PRIMARILY AN ADULT PRODUCT AND SO THE AD AGENCY OMITTED KIDDIES FROM THE CASTING CALL INSTEAD MR DAVIS SAYS CLOSE TO 100 CRUSTY CHARACTER ACTORS FEATURED IN WESTERNS OVER THE PAST 40 YEARS SHOWED UP FOR THE CATTLE CALL TO BE SCREENED BY THE SPOT'S DIRECTOR CALEB DESCHNEL WHO SERVED AS DIRECTOR OF PHOTOGRAPHY ON SUCH FILMS AS THE RIGHT STUFF AND THE NATURAL MR DESCHNEL DIRECTED THE SPOT DESPITE THE UNCERTAINTY THAT IT WOULD EVER GET ON THE AIR SIMPLY BECAUSE HE WAS PASSIONATE ABOUT THE STORYBOARD AND WANTED THE COMMERCIAL FOR HIS REEL SAYS MR DAVIS HUMOR ISN'T ENTIRELY NEW TO BACON AND ITS ILK FOR INSTANCE FISCHER PACKING A LOUISVILLE KY MEAT PROCESSING COMPANY PLASTERS BILLBOARDS THROUGHOUT THE SOUTH AROUND THANKSGIVING WITH DRAWINGS OF QUAKING TURKEYS WITH KNOCKING KNEES URGING CONSUMERS TO BUY FISCHER HAM AND BACON YOU STRESS HUMOR TO GET THE MESSAGE ACROSS SAYS JIM PAQUIN FISCHER'S ACTING PRESIDENT YOU DON'T WANT TO SAY CONSUMERS SHOULD USE THE PRODUCT IN MODERATION THAT'S UP TO THE INDIVIDUAL AT THOMPSON FOOTING OF THE BILL ISN'T LIKELY TO BECOME A TREND WE HAVE TO BE SELECTIVE IN DOING SOMETHING LIKE THIS SAYS MR DAVIS I'M ENCOURAGING EVERYONE HERE TO INNOVATE BUT THE REALITY IS WE CAN'T AFFORD TO DO THIS VERY OFTEN NOW HE HOPES OSCAR MAYER WILL TAKE ADVANTAGE OF THE FREEBIE AND TURN IT INTO A NATIONAL CAMPAIGN I HAVE EVERY HOPE AND EXPECTATION THAT THIS WILL AIR SAYS MR DAVIS BUT OSCAR MAYER'S MR SEARER REMAINS NONCOMMITTAL WE'RE JUST TESTING IT HE SAYS OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN SPED AWAY WITH PORSCHE AG'S NORTH AMERICAN AD ACCOUNT PREVIOUSLY HANDLED BY WPP GROUP'S FALLON MCELLIGOTT MINNEAPOLIS ESTIMATED BILLINGS ARE 5 MILLION TO 10 MILLION GOODBY BERLIN WAS TRANSFORMED FROM A SMALL REGIONAL SHOP INTO A NATIONAL AGENCY WHEN IT WON THE 90 MILLION AMERICAN ISUZU ACCOUNT TWO SUMMERS AGO ALTHOUGH IT IS RARE FOR AN AD AGENCY TO SERVICE TWO CAR ACCOUNTS GOODBY HAD BEEN PURSUING PORSCHE WITH ISUZU'S BLESSING PORSCHE CARS NORTH AMERICA TAPPED GOODBY OVER THREE OTHER FINALISTS GOLDBERG MOSER O'NEILL SAN FRANCISCO THE RICHARDS GROUP DALLAS AND STEIN ROBAIRE HELM LOS ANGELES ALL OF WHICH HAD PRESENTED PROSPECTIVE AD STRATEGIES FOR THE ACCOUNT THERE'S A LOT OF LATENT SECRET LUST OUT THERE FOR EXOTIC SPORTS CARS LIKE PORSCHE SAID JEFF GOODBY ONE OF THE AGENCY'S CREATIVE DIRECTORS HE SAID THE AGENCY PRESENTED IDEAS THAT FOCUSED ON THE EXPERIENCE OF DRIVING A PORSCHE RICHARD S FORD A VICE PRESIDENT AT PORSCHE'S NORTH AMERICAN HEADQUARTERS IN RENO NEV SAID GOODBY'S FIRST WORK WOULD MOST LIKELY BE FOR THE INTRODUCTION OF THE 1995 911 MODEL WHICH PORSCHE IS UNVEILING TO DEALERS IN NOVEMBER PEPSICOLA IS USING THE OPENING OF COLLEGE BASKETBALL'S MARCH MADNESS TONIGHT TO FLOOD THE AIRWAVES WITH NEW MOUNTAIN DEW ADS AIMED AT MEN IN THEIR 20S AD SPENDING FOR MOUNTAIN DEW WILL INCREASE 44 THIS YEAR WELL ABOVE THE 19 MILLION IN MEDIA SPENDING FOR THE BRAND DURING THE FIRST 11 MONTHS OF 1992 ACCORDING TO LEADING NATIONAL ADVERTISERS THE NEW 30SECOND COMMERCIALS WILL AIR A TOTAL OF 28 TIMES IN A SINGLE HOUR TONIGHT ON THE CBS NBC AND FOX NETWORKS AS WELL AS CABLE CHANNELS FROM 8 TO 9 PM EST THREE SPOTS FROM OMNICOM GROUP'S BBDO NEW YORK ARE CRAMMED WITH BREAKNECK SHOTS OF DAREDEVIL FEATS ONE SHOWS AN OVERHEAD SHOT OF BASE JUMPING IN WHICH A PARACHUTIST FLINGS HIMSELF INTO A FREE FALL OFF THE EDGE OF A CLIFF IT ALSO DEPICTS BOOGIEBOARD WATERFALL DIVING A SMALL DISCLAIMER APPEARS OVER THOSE SHOTS PROFESSIONAL DO NOT IMITATE PEPSI CAN'T BE TOO CAREFUL BECAUSE ITS THRILLPACKED COMMERCIALS FOR THE CITRUS SODA HAVE ATTRACTED IMITATORS BEFORE PEPSICO WAS ONCE SUED BY THE FAMILY OF A FLORIDA BOY WHO TRIED TO REENACT LAKE JUMPING SHOWN IN A MOUNTAIN DEW SPOT BY RIDING HIS BICYCLE UP A RAMP PLACED OVER WATER THE SUIT WAS DISMISSED IN 1987 ANOTHER SPOT SHOWS A GLIMPSE OF ALLIGATOR WRESTLING EVEN THOUGH A WARNING DOESN'T APPEAR ON THAT SPOT A PEPSI SPOKESMAN SAID THE ALLIGATOR IS A FAKE TOBACCO TROUBLE AS EXPECTED SEN TOM HARKIN D IOWA INTRODUCED A BILL REDUCING THE TAX DEDUCTIBILITY OF TOBACCO ADVERTISING TO 50 FROM 100 THE BILL WOULD EARMARK 30 OF THE PROCEEDS FOR COUNTERSMOKING HEALTH ADVERTISING AND 20 FOR DEFICIT REDUCTION SEN HARKIN TOOK THE OPPORTUNITY TO BLAST MERCHANDISE CAMPAIGNS SUCH AS RJR NABISCO'S CAMEL CASH PROGRAM AND PHILIP MORRIS'S VWEAR AS TARGETED TO WOMEN AND CHILDREN RJR AND PHILIP MORRIS HAVE REPEATEDLY SAID THEIR ADVERTISING IS AIMED ONLY AT GETTING SMOKERS TO SWITCH BRANDS GROUPS INCLUDING THE ASSOCIATION OF NATIONAL ADVERTISERS AND THE AMERICAN CIVIL LIBERTIES UNION SAID CHANGING THE TAX DEDUCTIBILITY WOULD CURB FREE SPEECH WHO'S NEWS TATHAM EURO RSCG THE CHICAGO AGENCY HIRED DANA ANDERSON AS A SENIOR PARTNER MANAGING NESTLE'S STOUFFERS LEAN CUISINE ACCOUNT MS ANDERSON WAS PREVIOUSLY A SENIOR VICE PRESIDENT AT THE CHICAGO OFFICE OF WPP GROUP'S J WALTER THOMPSON WORKING ON THE KRAFT GENERAL FOODS ACCOUNT 9303180063 930318 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY COMMISSION HIT BACK AT US CRITICISMS OF SUBSIDIES TO THE AIRBUS INDUSTRIE AIRPLANE CONSORTIUM QUESTIONING WHETHER WASHINGTON IS ADHERING TO THE ECUS ACCORD ON AIRCRAFT AID AND DEMANDING ASSURANCES IT WILL DO SO LEON BRITTAN EC FOREIGN TRADE COMMISSIONER SAID THE TRADE BLOC WOULD ASK THE US IN A BRUSSELS MEETING LATE THIS MONTH FOR A FORMAL COMMITMENT TO COMPLY WITH THE PACT'S LIMITS ON INDIRECT SUBSIDIES TO AIRCRAFT MAKERS 4 OF A COMPANY'S REVENUE THE CLINTON ADMINISTRATION'S PROMISES TO HELP THE US AVIATION INDUSTRY MR BRITTAN SAID RAISES QUESTIONS ABOUT THE US'S VIEW OF THE ACCORD THE EC WILL ASK FOR MORE DETAILS ON US PROGRAMS THAT BENEFIT COMPANIES SUCH AS BOEING CO AND MCDONNELL DOUGLAS CORP AIRBUS MAY BE AMONG THE TRADE ISSUES DISCUSSED AT A MEETING TODAY IN WASHINGTON BETWEEN PRESIDENT CLINTON AND COMMISSION PRESIDENT JACQUES DELORS THE TWO WILL TRY TO DEFUSE GROWING ECUS TRADE TENSIONS SOME EUROPEANS FEAR THE US IS HEADING FOR PROTECTIONISM THE UNITED ARAB EMIRATES STATE TELECOMMUNICATIONS GROUP ETISALAT NEXT MONTH WILL END ITS TWODECADE MONOPOLY ON PURCHASES AND SALES OF TELECOMMUNICATIONS EQUIPMENT THE MOVE IS INTENDED TO ENCOURAGE TRADING COMPANIES TO INTRODUCE COMPETITION BY OFFERING WIDER CHOICES AND LOWER PRICES BOOSTING THE ECONOMY SOUTH AFRICA UNVEILED A FISCAL 1994 BUDGET THAT INCREASES INDIRECT TAXES AND CUTS GOVERNMENT SPENDING BUSINESSES SAID THE BUDGET WOULD PROMOTE LONGTERM GROWTH THE PLAN RAISES THE VALUEADDED TAX TO 14 FROM 10 CUTS THE BASE CORPORATE TAX RATE TO 40 FROM 48 TO ENCOURAGE SMALL BUSINESS INTRODUCES A 15 TAX ON DIVIDENDS EXCEPT FOR FOREIGN INVESTORS AND BOOSTS FUEL PRICES AND EXCISE DUTIES ON LUXURY GOODS THE VAT AND FUEL BOOSTS MAY DAMP CONSUMPTION AN INFLATIONARY EFFECT MAY BE OFFSET BY HIGHER TAXES ON BEER WINE LIQUOR CIGARETTES AND SOFT DRINKS AND BY RESTRAINED GOVERNMENT OUTLAYS BEING OUTPACED BY INFLATION THAILAND'S CENTRAL BANK IS CLINGING TO ITS PREDICTION OF 78 ECONOMIC GROWTH THIS YEAR DESPITE A POSSIBLE GOVERNMENT RESHUFFLE A DECLINE IN THAI EXPORTS AS WORLD TRADING BLOCS TURN INWARD AND STOCK MARKET SCANDALS LAST YEAR GROSS DOMESTIC PRODUCT EXPANDED AN INFLATIONADJUSTED 75 THOUGH PRIVATE INVESTMENT AND THE FLOW OF CAPITAL INTO THAILAND HAS SLOWED THE BANK SEES IMPROVEMENT THOUGH EXPORT GROWTH COULD SLOW BECAUSE OF KEENER GLOBAL COMPETITION THE 78 GDP FORECAST TAKES POTENTIALLY REDUCED TRADE DEMAND INTO ACCOUNT GROWTH COULD TOP 8 IF THE WORLD'S MAJOR ECONOMIES REBOUND SOON AFTER MORE THAN TWO YEARS OF DELAY BECAUSE OF RUSSIAN POLITICAL INSTABILITY JAPAN WILL LEND 100 MILLION TO HELP THE REPUBLIC MEET BASIC HUMAN NEEDS JAPAN'S EXPORTIMPORT BANK WILL GRANT THE LOWINTEREST LOAN FOR FOOD AND MEDICINE PURCHASES FROM JAPANESE FIRMS MOSCOW FINALLY GUARANTEED TO REPAY THE LOAN PLEDGED IN DECEMBER 1990 AS PART OF A 25 BILLION AID PACKAGE JAPAN PROMISED BUT IS STILL NEGOTIATING ADDITIONAL EXIM BANK LOANS TOTALING 500 MILLION TO HELP RUSSIA OVERCOME SCARCITIES OF ESSENTIAL PRODUCTS GERMANY'S ECONOMICS MINISTER WARNED THAT A SERIES OF CHEMICALPLANT ACCIDENTS IN GERMANY THREATEN THE INVESTMENT CLIMATE FOR THE INDUSTRY ITS 650000 WORKERS AND PRODUCTS VITAL TO THE OVERALL ECONOMY AND TO OTHER SECTORS SUCH AS AUTOS MACHINERY AND ELECTRONICS GUENTER REXRODT SAID THE COMPANIES WHICH EXPORT HALF THE WORLD'S CHEMICAL OUTPUT AND GENERATE A GERMAN TRADE SURPLUS MUST TAKE MORE RESPONSIBILITY FOR PROTECTING EMPLOYEES AND FOR THE ENVIRONMENT OVERSEEN BY STATE GOVERNMENTS THAT A FEDERAL OFFICIAL ADDRESSED THE PROBLEM REFLECTS GERMANY'S GROWING FRUSTRATION ABOUT CHEMICAL ACCIDENTS IN THE MOST RECENT INCIDENT A WORKER WAS KILLED AND ANOTHER HURT IN EXPLOSIONS MONDAY AT HOECHST AG'S FRANKFURT PLANT HOECHST SAID THE ACCIDENT MAY HAVE FREED TRACE AMOUNTS OF CANCERCAUSING DIOXIN SEPARATELY THE EUROPEAN COMMUNITY COMMISSION BEGAN A DEBATE ON HOW TO CLEAN UP THE 12NATION BLOC'S ENVIRONMENT THE EC INVITED IDEAS FROM MEMBER STATES INDUSTRY AND AGRICULTURE UNTIL OCT 1 AS A FIRST STEP TOWARD A NEW ENVIRONMENTAL POLICY AUSTRALIA WILL SELL SEVEN ROLLSROYCE CARS AND TWO LAND ROVERS IT KEEPS FOR VISITS BY BRITAIN'S QUEEN ELIZABETH II SAYING THE 1950S AND 1960S FLEET NEEDS TO BE REPLACED BY MODELS WITH IMPROVED SAFETY FEATURES THE GOVERNMENT SAID THE MOVE WASN'T LINKED TO PRIME MINISTER PAUL KEATING'S VOW TO MAKE AUSTRALIA A REPUBLIC BY THE YEAR 2001 OUSTING ELIZABETH AS HEAD OF STATE FOURTHQUARTER SALES OF NEW ZEALAND MANUFACTURERS' ROSE 11 TO A RECORD 1101 BILLION NEW ZEALAND DOLLARS US584 BILLION FROM A YEAR EARLIER 9303180062 930318 LOBBYING PLANNED TO SELL AMERICANS ON AID TO RUSSIA BY CARLA ANNE ROBBINS AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS PLANNING A LOBBYING EFFORT TO SELL THE AMERICAN PUBLIC ON MORE AID TO RUSSIA AND COULD ENLARGE ITS REQUEST FOR ASSISTANCE TO THE BELEAGUERED COUNTRY THE ADMINISTRATION ALREADY PROPOSED GIVING 700 MILLION TO THE FORMER SOVIET REPUBLICS FOR FISCAL 1994 A 300 MILLION INCREASE FROM FORMER PRESIDENT BUSH'S PLANS BUT AIDES SAY THAT RUSSIA'S DESPERATE CIRCUMSTANCES COULD REQUIRE EVEN MORE ASSISTANCE BOTH PRESIDENT CLINTON AND SECRETARY OF STATE WARREN CHRISTOPHER WILL GIVE SPEECHES IN COMING DAYS EXPLAINING WHY THE SURVIVAL OF DEMOCRACY IN RUSSIA IS ESSENTIAL TO US NATIONAL SECURITY AND THE ADMINISTRATION'S OWN DOMESTIC ECONOMIC PLAN A HOSTILE GOVERNMENT IN RUSSIA THEY LIKELY WILL ARGUE WILL MAKE IT IMPOSSIBLE FOR THE US TO REDUCE MILITARY SPENDING AT HOME THE PUBLIC EFFORT ON BEHALF OF RUSSIA IS EXTRAORDINARY GIVEN MR CLINTON'S INSISTENCE DURING HIS ELECTION CAMPAIGN AND AFTERWARD THAT HIS FOCUS WILL BE ON DOMESTIC NOT FOREIGN AFFAIRS THE TIME HE SPENDS PRESSING FOR MORE MONEY FOR RUSSIANS ALSO WILL REDUCE THE TIME HE CAN SPEND WORKING WITH CONGRESS TO PASS HIS CONTROVERSIAL ECONOMIC PLAN US OFFICIALS ARE REFUSING TO SAY EXACTLY HOW MUCH MORE MONEY THEY WANT TO SPEND ON RUSSIA OR WHAT SPECIFIC PLANS THEY WILL PROPOSE BUT A SENIOR OFFICIAL SAYS THE PRESIDENT MAY CALL ON AMERICAN CITIZENS TO CONTRIBUTE THEIR TIME AND EXPERTISE TO HELP RUSSIA IN A VARIETY OF CITIZEN TO CITIZEN EXCHANGE AND ADVISORY PROGRAMS KEY TO ANY PROGRAM WILL BE INCREASED US GOVERNMENT SUPPORT FOR AMERICAN BUSINESSES SEEKING TO INVEST IN RUSSIA ALSO UNDER CONSIDERATION IS INCREASED TECHNICAL HELP FOR OILANDGAS AND AGRICULTURAL PRODUCTION HOUSING PROGRAMS FOR FORMER SOVIET MILITARY OFFICERS ARE BEING CONSIDERED AS WELL AS A SOCIAL CUSHION FOR WORKERS LAID OFF FROM THE MILITARY INDUSTRIAL COMPLEX MR CLINTON HAS BEEN PRESSING THE GROUP OF SEVEN COUNTRIES TO COME UP WITH A BROADER MULTILATERAL PLAN TO AID RUSSIA WE CAN'T ASK OTHER PEOPLE TO SPEND THEIR CASH IF WE'RE NOT WILLING TO SPEND MORE OF OUR OWN SAYS A US SENIOR OFFICIAL US OFFICIALS HAD BEEN HOPING TO POSTPONE THEIR PITCH UNTIL MR CLINTON'S ECONOMIC PROGRAM WAS PASSED BUT RUSSIAN PRESIDENT BORIS YELTSIN'S RECENT STRUGGLES WITH HIS PARLIAMENT AND NEXT MONTH'S SUMMIT BETWEEN MESSRS CLINTON AND YELTSIN CONVINCED THEM THEY COULDN'T WAIT IT'S JUST AN IMPORTANT THING TO DO ANOTHER SENIOR OFFICIAL SAYS OF AID TO RUSSIA YOU HAVE TO EXPLAIN TO PEOPLE WHY THIS IS IMPORTANT TO THEM 9303180061 930318 LEISURE & ARTS BEST SELLERS COMPILED BY PUBLISHERS WEEKLY FROM DATA FROM LARGECITY BOOKSTORES BOOKSTORE CHAINS AND LOCAL BESTSELLER LISTS ACROSS THE US COPYRIGHT 1993 REED PUBLISHING USA 9303180060 930318 LAWYERS TITLE SETTLES CHARGES OF CHEATING HUD FOR 11 MILLION WASHINGTON LAWYERS TITLE INSURANCE CORP RICHMOND VA WILL PAY THE FEDERAL GOVERNMENT 11 MILLION TO SETTLE CHARGES THAT ITS LAS VEGAS AFFILIATE CHEATED THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT THE JUSTICE DEPARTMENT SAID THE GOVERNMENT AND MORTGAGES INC A LAS VEGAS MORTGAGE LENDER SAID IN A LAWSUIT AGAINST LAWYERS TITLE THAT THE COMPANY FALSIFIED DEPOSIT RECEIPTS AND OTHER DOCUMENTS TO HELP A DEVELOPER OBTAIN HUDINSURED LOANS OUT OF THE 11 MILLION SETTLEMENT MORTGAGES INC WILL RECEIVE 159000 UNDER THE FALSE CLAIMS ACT WHICH PERMITS PRIVATE PARTIES TO SUE COMPANIES AND PEOPLE WHO ALLEGEDLY HAVE DEFRAUDED THE GOVERNMENT THE ANNOUNCEMENT OF THE SETTLEMENT WAS MADE BY STUART GERSON A BUSH ADMINISTRATION APPOINTEE WHO IS STILL ASSISTANT ATTORNEY GENERAL FOR THE JUSTICE DEPARTMENT'S CIVIL DIVISION MR GERSON WAS ACTING ATTORNEY GENERAL UNTIL FRIDAY WHEN JANET RENO WAS SWORN IN AS ATTORNEY GENERAL AN OFFICIAL AT THE LAWYERS TITLE OFFICE IN LAS VEGAS HAD NO COMMENT AND OFFICIALS AT THE RICHMOND OFFICE COULDN'T BE REACHED TO COMMENT 9303180059 930318 LEISURE & ARTS REDTAILED HAWKS LIKE FIFTH AVENUE ADDRESS TOO BY MARIE WINN NEW YORK THE WOODCOCK A CHUBBY GENTLE LONGBILLED GAME BIRD OF WET THICKETS AND BRUSHY SWAMPS IS GENERALLY THE FIRST AND MOST EAGERLY AWAITED OF CENTRAL PARK'S SPRING MIGRANTS ITS ARRIVAL IN LATE FEBRUARY OR EARLY MARCH A GOOD MONTH BEFORE THE FIRST WARBLERS START DROPPING IN SIGNALS THE END OF BIRDERS' WINTER DOLDRUMS THIS YEAR HOWEVER WHEN REGULAR PARK BIRD WATCHERS SYLVIA AND MOE COHEN FLUSHED A WOODCOCK DEEP IN THAT WOODED AREA KNOWN AS THE RAMBLE ON MARCH 3 THEIR REPORT FAILED TO AROUSE THE USUAL EXCITEMENT ANOTHER BIRD DRAMA TOOK TOP BILLING THAT MORNING THIS ONE FEATURING A MORE PREDATORY SPECIES A PAIR OF REDTAILED HAWKS MASTERS OF THE ART OF SOARING AND FIERCE HUNTERS OF PREY RANGING FROM RATS AND MICE TO RATTLESNAKES HAD BEEN DISCOVERED IN THE PROCESS OF BUILDING A NEST AND IN WHAT A REMARKABLE SPOT ON THE 12TH AND TOP FLOOR OF AN ELEGANT APARTMENT HOUSE AT FIFTH AVENUE AND 74TH STREET IN PERFECT BINOCULAR VIEW PEREGRINE FALCONS AND KESTRELS ARE THE TWO HAWK SPECIES KNOWN TO NEST IN URBAN ENVIRONMENTS A REDTAILED HAWK NESTING ON A CITY BUILDING IS UNPRECEDENTED I DON'T KNOW OF ANY OTHER INCIDENT WHERE REDTAILS HAVE USED THE SIDE OF A BUILDING FOR NESTING SAID CHARLES R PRESTON CURATOR OF ORNITHOLOGY AT THE DENVER MUSEUM OF NATURAL HISTORY I FIND IT AMAZING DECLARED DEAN AMADON LAMONT CURATOR EMERITUS OF BIRDS AT THE AMERICAN MUSEUM OF NATURAL HISTORY IN NEW YORK MAYBE THE MALE HAS A SCREW LOOSE SOMEWHERE UNTIL LAST YEAR THERE WERE NO RECORDS WHATSOEVER OF A REDTAILED HAWK NESTING ANYWHERE IN CENTRAL PARK TO SAY NOTHING OF NESTING ON A TALL CITY BUILDING BUTEO JAMAICENSIS TO GIVE THE BIRD ITS SCIENTIFIC NAME HAD ONLY BEEN A WINTER VISITOR TO THE PARK ALWAYS LEAVING IN EARLY SPRING TO SET UP HOUSEKEEPING ELSEWHERE THEN LAST YEAR ON MARCH 18 TO BE EXACT A PAIR OF REDTAILS WERE OBSERVED IN CENTRAL PARK ENGAGING IN AN UNMISTAKABLE ACTIVITY CARRYING STICKS AND TWIGS TO A NESTING SITE THE HAWKS HAD CHOSEN AN ABSURDLY CONSPICUOUS SPOT FOR THEIR HISTORIC FIRST HOME IN THE PARK A TREE JUST BEHIND THE BASEBALL BACKSTOP AT THE SOUTHWEST CORNER OF THE GREAT LAWN ONE OF THE MOST HEAVILY TRAFFICKED AREAS OF CENTRAL PARK THE GREAT LAWN IS NOT A PROPITIOUS NESTING SITE FOR A SPECIES DESCRIBED IN THE LITERATURE AS SHY OF HUMANS AND HIGHLY SECRETIVE ABOUT ITS NESTING ACTIVITIES BUT NOT THESE BIRDS THEY WERE AN ODD COUPLE AN ADULT FEMALE WHO HAD HOOKED UP WITH A YOUNG AND INEXPERIENCED MALE THIS AGE DISCREPANCY WAS EASY TO SEE FOR ONLY ADULT REDTAILS HAVE THE BRIGHTLY COLORED TAIL FOR WHICH THE SPECIES IS NAMED IN ADDITION THE YOUNG MALE WAS UNUSUALLY PALE FOR A REDTAILED HAWK THE NEST WAS A BUST BY APRIL 4 THE HAWK WATCHERS COULDN'T HELP SEEING THAT THE STRUCTURE WAS FALLING APART ON APRIL 10 HOWEVER A NEW NEST SITE WAS DISCOVERED A HIGH ELM NEAR EAST 70TH STREET ONCE AGAIN A FAITHFUL BAND OF HAWK ADDICTS GATHERED ALMOST DAILY TO WATCH THE BIRDS' NESTBUILDING PROGRESS THEN DISASTER STRUCK ON MAY 2 THE FEMALE REDTAILED HAWK WAS MOBBED BY A GANG OF SCREAMING CROWS AND CRASHLANDED ON THE ROOFTOP OF A HIGHRISE ON 73RD STREET AND FIFTH AVENUE SOMEONE IN AN ADJOINING BUILDING SUMMONED A LICENSED WILDLIFE REHABILITATOR WHO DIAGNOSED A DISLOCATED ELBOW OF THE WING AND TRANSPORTED THE BIRD TO THE RAPTOR TRUST A REHABILITATION CENTER IN MILLINGTON NJ TWO DAYS LATER THE YOUNG MALE DISTRACTED PERHAPS BY THE LOSS OF HIS MATE WAS ALSO THE VICTIM OF CROW HARASSMENT HE WAS FOUND ON THE ROOF OF A NEARBY BROWNSTONE OUT COLD THE SAME REHABILITATOR TOOK HIM IN FOR SEVERAL DAYS THE BIRD RECOVERED COMPLETELY AND WAS RELEASED IN CENTRAL PARK ON MAY 8 WHERE HE REMAINED INTO THE FALL AND WINTER EASILY IDENTIFIED BY HIS PALE PLUMAGE BY THE END OF THE YEAR MANY OBSERVERS NOTED THAT HIS TAIL WAS GETTING RED THAT WAS LAST YEAR EARLY LAST MONTH THE LIGHTCOLORED MALE NOW A REDTAIL NOT ONLY IN NAME BUT IN REALITY WAS SEEN HANGING AROUND WITH ANOTHER HAWK A SLIGHTLY LARGER AND DARKER BIRD SINCE HAWK FEMALES ARE GENERALLY LARGER THAN MALES IT LOOKED LIKE A NEW ROMANCE WAS BEGINNING AND INDEED ON MARCH 1 THREE BIRD WATCHERS SAW THE HAWK FLYING ACROSS THE ROWBOAT LAKE WITH A LARGE TWIG IN HIS TALONS THE FIFTH AVENUE AERIE WAS DISCOVERED SHORTLY THEREAFTER FROM THAT DAY CENTRAL PARK'S BIRD LOVERS FOLLOWED THE REDTAILS' NESTING HUNTING AND COURTING ACTIVITIES WITH AN ALMOST OBSESSIVE INTEREST THE HAWKS' LOVEMAKING IF ONE CAN USE THAT TENDER WORD TO DESCRIBE AN ACT THAT TAKES THESE BIRDS ABOUT EIGHT SECONDS AT MOST TO COMPLETE WAS OBSERVED FREQUENTLY ON VARIOUS TV ANTENNAS AND RAILINGS HIGH ON THE ROOFTOPS OF SEVERAL BUILDINGS NORTH OF THE NEST SITE THE BEST HAWKWATCHING LOCATION PROVED TO BE A BENCH ON THE WEST SIDE OF THE PARK'S MODELBOAT POND NEAR THE STATUE OF HANS CHRISTIAN ANDERSEN ANY NUMBER OF BINOCULARBEARING AMATEUR NATURALISTS COULD BE SEEN THERE AND TO SOME CENSORIOUS PASSERSBY THEY SEEMED TO BE INVADING THE PRIVACY OF FIFTH AVENUE APARTMENT DWELLERS IN FACT THAT IS EXACTLY WHAT THEY WERE DOING BUT THE DWELLERS WERE BIRDS AND THE APARTMENT WAS MADE OF STICKS AND TWIGS THESE WERE WEDGED SECURELY INTO A ROW OF SPIKES PLACED ABOVE THE WINDOW TO PROTECT ITS ELABORATE ORNAMENTATION A PAIR OF CHERUBS HOLDING UP A MEDALLION FROM PIGEON DESECRATION THE HAWKS WERE SERVING THE SAME FUNCTION ON MARCH 13 THE DAY OF THE GREAT BLIZZARD OF 1993 THE ANXIOUS THOUGHTS OF MANY LOCAL BIRD WATCHERS CENTERED ON THE NESTING HAWKS AS ONE OF THE FIERCEST WINTER STORMS IN DECADES TRANSFORMED THE PAIR'S HUNTING GROUNDS INTO A WHITE WASTELAND HOW WOULD THE POOR HAWKS MANAGE WOULD THE NEST SURVIVE WINDS OF ALMOST HURRICANE FORCE THE BIRDERS' WORRIES IT TURNED OUT WERE FASTENED ON THE WRONG BIRD ON THE DAY AFTER THE STORM CENTRAL PARK WAS FILLED WITH SLEDDERS SKIERS DOG WALKERS AND JUST PLAIN NEW YORKERS AT THEIR FRIENDLIEST AND MOST CHEERFUL A STATE OF MIND THAT ALWAYS SEEMS TO FOLLOW ANY NATURAL DISASTER THE BIRDWATCHING COMMUNITY TOO WAS OUT IN FULL FORCE AND MANY PAIRS OF BINOCULARS WERE TRAINED AT THE TOP FLOOR OF THE HAWK BUILDING AS IT HAD COME TO BE CALLED TO EVERYONE'S RELIEF THE NEST APPEARED INTACT ALTHOUGH THE BIRDS WERE NOWHERE TO BE SEEN THROUGHOUT THE MORNING EARLY THAT AFTERNOON A YOUNG MAN NAMED CHRISTOPHER HAYES LUCKED OUTFROM HIS POINT OF VIEW HE HAS BEEN FREQUENTING CENTRAL PARK FOR MORE THAN A YEAR NOW HOPING TO MAKE A DOCUMENTARY RECORD OF EVERY SPECIES OF BIRD TO BE FOUND THERE AT 215 PM AS HE WAS STANDING WITH HIS VIDEO CAMERA AT A SPOT BIRD WATCHERS REFER TO AS WILLOW ROCK THE MALE REDTAILED HAWK SUDDENLY LANDED ON A TREE JUST AHEAD AND IN HIS TALONS THE HAWK HELD A WOODCOCK THE WELCOME HARBINGER OF SPRING WAS DEAD FIRST THE PREDATOR PLUCKED THE FEATHERS FROM HIS LIMP VICTIM THEN THE HAWK'S MATE ARRIVED AND THE MALE GRACIOUSLY SHARED HIS MEAL WITH HER AND ON A HIGH8 VIDEO CAMERA MR HAYES RECORDED THE ENTIRE EVENT FOR POSTERITY POSTSCRIPT AS OF YESTERDAY THE BIRDS WERE SEEN BRINGING BARK LEAVES AND OTHER LINING MATERIALS TO THE NEST THIS IS THE LAST STAGE BEFORE EGG LAYING AND INCUBATION WHICH SHOULD TAKE ABOUT 30 DAYS THEN THE REAL EXCITEMENT BEGINS MS WINN IS A NEW YORK WRITER 9303180058 930318 CREDIT MARKETS MANY TREASURY ISSUES RISE SHARPLY AS INVESTORS COPE WITH PRICE REPORT REJECT INFLATION FEARS BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF MANY TREASURY NOTES AND BONDS ENDED SHARPLY HIGHER YESTERDAY AS INVESTORS PUT THEIR WORRIES ABOUT INFLATION TO THE SIDE AT LEAST FOR THE MOMENT A CLOSELY WATCHED REPORT ON CONSUMER PRICES WASHED THROUGH THE MARKET EARLY IN THE DAY PUSHING PRICES LOWER BECAUSE OF ITS UNANTICIPATED STRENGTH BY LATE IN THE DAY HOWEVER PRICES BOUNCED BACK TO POST STRONG GAINS THE BENCHMARK 30YEAR BOND ROSE LESS THAN 1/8 POINT TO 103 7/32 TO YIELD 687 UNCHANGED FROM TUESDAY BUT TREASURY SECURITIES MATURING IN FIVE TO 10 YEARS POSTED MUCH LARGER GAINS THE 10YEAR NOTE ROSE MORE THAN 3/8 POINT TO 101 25/32 TO YIELD 6 DOWN FROM 606 ON TUESDAY MEANWHILE THE STATE OF ISRAEL SOLD 1 BILLION OF NOTES AND BONDS THROUGH A GROUP OF UNDERWRITERS LED BY SALOMON BROTHERS IT WAS A SURPRISINGLY STRONG DAY GIVEN THE NEWS SAID MEAD BRIGGS HEAD OF RISK MANAGEMENT AT DEUTSCHE BANK GOVERNMENT SECURITIES REFERRING TO THE FEBRUARY CONSUMER PRICE INDEX REPORT RELEASED YESTERDAY MORNING THE CPI WAS STRONGER THAN EXPECTED AND THE MARKET WENT DOWN SAID MR BRIGGS BUT INVESTORS APPEARED TO BUY ON THE DIP BUYING BY OVERSEAS INVESTORS CENTRAL BANKS AND BY HEDGE FUNDS OF INTERMEDIATE SECURITIES HELPED THE MARKET ERASE LOSSES THAT WERE SUSTAINED IN RESPONSE TO THE PRICE REPORT WHILE THE LABOR DEPARTMENT'S REPORT THAT THE OVERALL INDEX ROSE 03 IN FEBRUARY WAS IN LINE WITH MOST FORECASTS A 05 INCREASE IN THE SOCALLED CORE RATE OF INFLATION WHICH EXCLUDES FOOD AND ENERGY SURPRISED WALL STREET THE CORE RATE WAS SOMEWHAT HIGHER THAN THE MARKET HAD BEEN LOOKING FOR SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG & CO COMING ON THE HEELS OF GROWING INFLATION JITTERS CAUSED BY RISING COMMODITIES PRICES AND A LARGERTHANEXPECTED GAIN IN FEBRUARY PRODUCER PRICES IT CAUSED THE MARKET TO QUICKLY SELL OFF MR LEUZZI SAID BUT THE MARKET WAS ABLE TO WEATHER THE STORM PARTIALLY DUE TO A SENSE IN THE MARKET THAT THE CONSUMER PRICE REPORT MAY HAVE EXAGGERATED THE PACE OF INFLATION MUCH OF THE RISE IN THE CPI CENTERED ON APPAREL COSTS WHICH ANALYSTS SAID MAY HAVE BEEN THE WORK OF DISTORTED SEASONAL FACTORS THE BOTTOM LINE ANALYSTS SAID IS THAT WHILE INFLATION MAY NOT FALL MUCH FURTHER NEITHER IS IT POISED TO CONTINUE POSTING THE TYPES OF INCREASES SEEN IN THE FEBRUARY REPORT INFLATION REMAINS FAIRLY STABLE AROUND 3 AND WILL STAY THAT WAY SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC WE'RE CONCERNED THAT INFLATION HAS BOTTOMED OUT NOT THAT IT'S GOING TO TAKE OFF AGAIN SAID MR BRIGGS OF DEUTSCHE BANK THE INFLATION SCARE HAS NOW PASSED SAID JAMES SOMERS A HEDGE FUND MANAGER IN RADNOR PA THE IRONY HE ADDED IS THAT ALL THE VOLATILITY RECENTLY HAS BEEN AMONG INTERMEDIATE SECURITIES MATURING IN FIVE TO 10 YEARS ACCORDING TO MR BRIGGS THESE SECURITIES HAVE BEEN IN GREAT DEMAND RECENTLY FROM INSTITUTIONAL INVESTORS OUTSIDE THE WALL STREET DEALER COMMUNITY THE SCARCITY OF THESE SECURITIES IN THE REPURCHASE OR REPO MARKET FOR TREASURY SECURITIES HAS ATTRACTED THE ATTENTION OF THE FEDERAL RESERVE BANK OF NEW YORK YESTERDAY THE FED SAID IT HAS ASKED PRIMARY DEALERS TO BEGIN REPORTING ON POSITIONS AND FINANCING IN THE CURRENT 10YEAR NOTE WHICH CARRIES A COUPON OF 625 THE 10YEAR NOTE HAS BEEN TRADING ON WHAT IS KNOWN AS SPECIAL IN THE REPO MARKET WHICH MEANS THE ISSUE IS CONSIDERED SCARCE ENOUGH OR FACES ENOUGH DEMAND TO PRODUCE LOWRATE LOANS FROM PARTICIPANTS NEEDING TEMPORARY USE OF THOSE SECURITIES REPO TRADERS SAID THE 10YEAR NOTE IS BEING PRESSURED BY LARGE AMOUNTS OF LEGITIMATE SHORT POSITIONS MOSTLY HEDGING AGAINST CORPORATE AND MORTGAGEBACKED DEBT A SHORT POSITION IS THAT HELD BY A DEALER WHO SELLS A BORROWED SECURITY IN THE HOPE OF BUYING IT BACK AT A LOWER PRICE AND POCKETING THE DIFFERENCE IT IS A BET ON RISING INTEREST RATES AND FALLING PRICES THE NEW YORK FED'S INQUIRY INTO THE 10YEAR NOTE FOLLOWS NEWS TUESDAY THAT DEALERS HAD TO REPORT ON ACTIVITY IN THE CURRENT FIVEYEAR NOTE WHICH CARRIES A COUPON OF 5125 TRADERS WERE FORCED BY YESTERDAY'S RALLY TO COVER THEIR SHORT POSITIONS IN INTERMEDIATE SECURITIES THUS BOOSTING THEIR PRICES THE LAST HALF OF THE DAY WAS A LITTLE BIT OF A SQUEEZE ON THOSE POSITIONS SAID BERNARD KANE A MANAGING DIRECTOR AT FUJI SECURITIES INC THE ONLY OTHER PIECE OF ECONOMIC DATA YESTERDAY THE FEDERAL RESERVE'S REPORT THAT INDUSTRIAL PRODUCTION ROSE 04 IN FEBRUARY WAS IN LINE WITH MOST FORECASTS AND DID NOT HAVE AN IMPACT ON TRADING ALSO THE TREASURY DEPARTMENT ANNOUNCED THAT IT WILL SELL 1525 BILLION IN TWOYEAR NOTES NEXT WEDNESDAY AND 110 BILLION IN FIVEYEAR NOTES NEXT THURSDAY BOTH OFFERINGS WERE UNCHANGED IN SIZE FROM LAST MONTH'S AUCTIONS IN WHENISSUED TRADING LATE WEDNESDAY THE TWOYEAR NOTE YIELDED 400 AND THE FIVEYEAR NOTE YIELDED 525 CORPORATE BONDS CLIMBED BACK WITH TREASURYS AFTER GETTING KNOCKED DOWN EARLIER AMID CONCERNS THAT INFLATION MAY BE ON THE RISE CORPORATE BONDHOLDERS ARE PARTICULARLY WORRIED ABOUT INFLATIONARY PRESSURES NOW BECAUSE MANY OF THE BONDS SOLD SINCE JANUARY CARRY MATURITIES OF 30 YEARS OR LONGER A NUMBER OF INSTITUTIONAL ACCOUNTS HAVE LENGTHENED THE AVERAGE MATURITY OF THEIR PORTFOLIOS IN RECENT MONTHS TO PROFIT FROM FURTHER DROPS IN LONGTERM INTEREST RATES MANY HIGHGRADE CORPORATES ENDED 1/8 POINT TO 3/8 POINT HIGHER EARLIER PRICES HAD BEEN OFF 1/8 POINT TO 1/4 POINT ON THE INFLATION DATA MANY JUNK BONDS ENDED MIXED IN THIN TRADING DEALERS ACCOUNTED FOR MUCH OF THE BUYING AND SELLING TRADERS SAID AMONG SPECIFIC ISSUES BONDS OF DELTA AIR LINES SLUMPED DELTA'S 975 DEBENTURES DUE 2021 DROPPED 1 1/2 POINTS TO 93 1/8 THE ISSUE'S YIELD ROSE TO 1051 FROM 1034 TUESDAY LAST WEEK STANDARD & POOR'S CORP DOWNGRADED THE AIRLINE'S SENIOR DEBT TO DOUBLEB A JUNK BOND RATING FROM TRIPLEBMINUS AMONG YESTERDAY'S MOST INTERESTING DEBT SALES WAS THAT OF THE STATE OF ISRAEL THE OFFERING WHICH WAS PRICED LATE YESTERDAY THROUGH A GROUP OF UNDERWRITERS LED BY SALOMON BROTHERS INC INCLUDED NOTES MATURING IN THREE FIVE SEVEN AND 10 YEARS AND ZERO COUPON NOTES AND BONDS WITH MATURITIES OF 10 TO 30 YEARS ZERO COUPON SECURITIES ARE SOLD AT A STEEP DISCOUNT TO THEIR FACE VALUE AND PAY NO INTEREST PROCEEDS FROM THE OFFERING WILL TOTAL 1 BILLION ACCORDING TO SALOMON BROTHERS THE NOTES WHICH ARE OBLIGATIONS OF THE STATE OF ISRAEL ARE GUARANTEED BY THE US ACTING THROUGH THE AGENCY FOR INTERNATIONAL DEVELOPMENT AID IS AUTHORIZED TO GUARANTEE AS MUCH AS 10 BILLION IN LOAN PRINCIPAL AND INTEREST PAYMENTS TO ISRAEL DURING THE FISCAL YEARS 1993 THROUGH 1998 UNDER PROVISIONS OF THE FOREIGN ASSISTANCE ACT AID IS AUTHORIZED TO GUARANTEE ISRAEL'S LOANS TO SUPPORT ISRAEL'S EXTRAORDINARY HUMANITARIAN EFFORT TO RESETTLE AND ABSORB IMMIGRANTS INTO ISRAEL FROM THE REPUBLICS OF THE FORMER SOVIET UNION ETHIOPIA AND OTHER COUNTRIES BANKERS SAY THE SECURITIES ARE TARGETED TO INVESTORS WHO COMMONLY BUY BONDS OF US AGENCIES SUCH AS FEDERAL HOME LOAN MORTGAGE CORP AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THE THREEYEAR NOTES WERE PRICED AT 99619 TO YIELD 4513 FOR A 012 PERCENTAGE POINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE THE FIVEYEAR NOTES WERE PRICED AT 99437 TO YIELD 538 A 012 PERCENTAGE POINT ABOVE THE COMPARABLE TREASURY NOTE THE SEVENYEAR NOTES WERE PRICED AT 99207 TO YIELD 589 A 020 PERCENTAGE POINT SPREAD THE 10YEAR NOTES WERE PRICED AT 99373 TO YIELD 621 021 PERCENTAGE POINT SPREAD PRICES OF MUNICIPAL BONDS RECOVERED AFTER AN EARLY DROP TO END GENERALLY UNCHANGED TO 1/4 POINT HIGHER AMONG ACTIVE ISSUES THE SAN JOAQUIN HILLS CALIF TRANSPORTATION CORRIDOR AGENCY'S 7 SENIORLIEN TOLL ROAD REVENUE BONDS OF 2030 CLOSED UNCHANGED AT 98 1/2 TO YIELD 709 RHODE ISLAND DEPOSITORS ECONOMIC PROTECTION CORP'S 525 SPECIAL OBLIGATION REFUNDING BONDS OF 2021 FINISHED 1/8 FIRMER AT 91 1/4 TO YIELD 583 IN REACTION TO THE VOTE BY RESIDENTS OF BREVARD COUNTY FLA TO CONTINUE ANNUAL APPROPRIATION PAYMENTS ON 239 MILLION OF CERTIFICATES OF PARTICIPATION BOTH S&P AND MOODY'S ISSUED STATEMENTS ABOUT THE COUNTY S&P AFFIRMED THE COUNTY'S SINGLEA RATING FOR 146 MILLION OF SERIES 1993 LIMITED AD VALOREM TAX BONDS AS WELL AS THE TRIPLEBPLUS RATING FOR THE COUNTY'S 670000 SERIES 1976 RECREATIONAL FACILITIES BONDS BOTH RATINGS WERE REMOVED FROM CREDITWATCH AND THE RATINGS OUTLOOK FOR BOTH ISSUES IS NOW STABLE S&P SAID MOODY'S SAID BREVARD COUNTY'S VOTE ON OCCUPANCY OF THE GOVERNMENT CENTER RAISES SERIOUS QUESTIONS ABOUT THE COUNTY'S WILLINGNESS TO REPAY CERTIFICATES OF OBLIGATION PRICES OF MORTGAGE SECURITIES ENDED HIGHER NO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS WERE ANNOUNCED HOWEVER IN THE ASSETBACKED MARKET GENERAL MOTORS ACCEPTANCE CORP OFFERED 130 BILLION OF SECURITIES BACKED BY AUTO LOANS GMAC IS THE FINANCING ARM OF GENERAL MOTORS CORP IN SECONDARY TRADING THE 7 MORTGAGE SECURITIES FOR APRIL DELIVERY ISSUED BY ALL THREE AGENCIES JUMPED 14/32 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED AT 100 15/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED AT 100 17/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION FINISHED AT 100 10/32 THE RISK OF EARLY PREPAYMENTS HAS FAR FROM DISSIPATED AND MANY INVESTORS REMAIN HESITANT TO BUILD INVENTORIES SUBSTANTIALLY IN THE LATEST EVIDENCE THAT HOME SALES REFINANCINGS AND THUS PREPAYMENTS ARE ACCELERATING THE DOW JONES/TELERATE TITLE SEARCH INDEX SPIKED UPWARD TO A LEVEL JUST SHY OF ITS ALLTIME HIGH THIS INDEX CLIMBED TO 2825 IN THE WEEK ENDED MARCH 12 FROM 2554 THE PRIOR WEEK TO STAND JUST BELOW THE PEAK OF 2872 REACHED IN THE WEEK ENDED JAN 31 1992 AS RECENTLY AS DECEMBER 1992 THE TITLE SEARCH MEASURE STOOD AROUND 100 TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9303180057 930318 SEC IS INVESTIGATING MCDONNELL DOUGLAS OVER LOSSES' ON CONTRACT TO BUILD C17 BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING MCDONNELL DOUGLAS CORP'S EFFORT TO SUPPRESS NEGATIVE FINANCIAL INFORMATION CONCERNING LOSSES ON ITS CONTRACT TO BUILD THE C17 MILITARY TRANSPORT JET A DEFENSE DEPARTMENT OFFICIAL SAID I DID REPORT THIS MATTER TO THE CHAIRMAN OF THE SEC PENTAGON INSPECTOR GENERAL DEREK VANDER SCHAAF TOLD A HOUSE GOVERNMENT OPERATIONS SUBCOMMITTEE THEY ARE LOOKING AT THE MATTER AT THIS MOMENT THE SEC VOTED TO ISSUE A FORMAL ORDER OF INVESTIGATION INTO THE COMPANY'S DISCLOSURES RELATING TO THE C17 PROGRAM SAID ANOTHER PERSON FAMILIAR WITH THE SITUATION A THIRD PERSON SAID THE AGENCY IS MOVING QUICKLY AND THAT THE INVESTIGATION IS RECEIVING ATTENTION FROM THE SEC'S TOP ENFORCEMENT OFFICERS THE SEC'S ACTION CAN ONLY REINFORCE CONGRESSIONAL SENTIMENT AGAINST THE TROUBLED C17 PROGRAM IN ANOTHER BLOW TO THE PROGRAM REP JOHN MURTHA D PA THE INFLUENTIAL CHAIRMAN OF THE HOUSE APPROPRIATIONS SUBCOMMITEE ON DEFENSE TOLD A BREAKFAST MEETING WITH REPORTERS THE C17 IS GONE I'M FOR KILLING IT APPEARING BEFORE THE GOVERNMENT OPERATIONS SUBCOMMITTEE SEN CHARLES GRASSLEY D IOWA SAID IF WE STAY THE PRESENT COURSE I DON'T THINK THERE'S GOING TO BE ANY C17 I THINK THE C17 WILL SELFDESTRUCT UNDER DISHONEST MANAGEMENT MR VANDER SCHAAF APPEARED BEFORE THE SUBCOMMITTEE YESTERDAY TO DISCUSS A REPORT HE ISSUED IN JANUARY THAT ACCUSED THE AIR FORCE OF IMPROPERLY BOOSTING THE CASH POSITION OF MCDONNELL DOUGLAS THE NATION'S LARGEST DEFENSE CONTRACTOR THE REPORT'S CENTRAL CHARGE WAS THAT IN 1990 SEVERAL AIR FORCE OFFICIALS BELIEVING THAT MCDONNELL DOUGLAS WAS ON THE VERGE OF BANKRUPTCY MADE 442 MILLION IN PAYMENTS THAT TEMPORARILY MASKED THE COMPANY'S FINANCIAL CONDITION AND HELPED IT OBTAIN PRIVATE FINANCING IN THE WAKE OF THAT REPORT REPS JOHN CONYERS CHAIRMAN OF THE GOVERNMENT OPERATIONS COMMITTEE AND JOHN DINGELL BOTH MICHIGAN DEMOCRAT ASKED THE SEC TO LOOK INTO THE COMPANY'S PAST FINANCIAL STATEMENTS MR DINGELL CHAIRMAN OF THE HOUSE COMMITTEE THAT OVERSEES THE SEC NOTED IN HIS LETTER TO THE COMMISSION THAT THE AGENCY ALREADY WAS PROBING THE COMPANY'S DISCLOSURES REGARDING ITS LOSSES ON THE NAVY'S TERMINATED A12 AIRCRAFT ALSO AT YESTERDAY'S SUBCOMMITTEE HEARING A FORMER COMPANY EXECUTIVE CALLED THE COMPANY'S MANAGEMENT ARROGANT INCOMPETENT AND UNETHICAL CONCEDING THAT HE BEARS A GRUDGE BECAUSE THE COMPANY HAS CUT HEALTHCARE BENEFITS FOR RETIREES WILLIAM JENNE A RETIRED MCDONNELL DOUGLAS FISCAL EXPERT SAID THE COMPANY IN 1990 PUBLICLY ESTIMATED ITS COSTS ON THE FIRST PART OF THE C17 PROGRAM TO BE 646 BILLION WHILE AN INTERNAL CONSENSUS ESTIMATED THE ACTUAL COST TO BE 17 BILLION HIGHER MEANING THAT THE COMPANY WOULD TAKE A BATH ON THAT PART OF THE PROGRAM BUT LARRY MCCRACKEN MCDONNELL DOUGLASS' SPOKESMAN FOR TE C17 PROGRAM SAID THAT THE COMPANY CAME UP WITH ONE COST ESTIMATE IN 1990 ON WHICH IT BASED ITS PUBLIC AND GOVERNMENT REPORTS MCDONNELL DOUGLAS BELIEVES THAT IT PROPERLY REPORTED AND DISCLOSED INFORMATION RELATIVE TO THE C17 CONTRACT AND THAT IT PROPERLY SUBMITTED BILLS TO AND WAS PAID BY THE AIR FORCE IN ACCORDANCE WITH DOD ACCOUNTING RULES THEN IN EFFECT FOR WORK PERFORMED A SPOKESWOMAN FOR THE COMPANY SAID AN SEC FILING BY THE COMPANY LAST WEEK SAID THAT THE AGENCY HAD ISSUED THE COMPANY A SUBPOENA REQUESTING MORE INFORMATION ON THE C17 AND POSSIBLY OTHER PROGRAMS 9303180056 930318 LAW LEGAL BEAT RULING GIVES LAWS ON PRIVACY A HITECH EDGE BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL A RECENT RULING BY A FEDERAL JUDGE IN AUSTIN TEXAS PUSHED PRIVACY LAWS A BIT FURTHER INTO THE TECHNOLOGY AGE FOR THE FIRST TIME SAY ATTORNEYS A FEDERAL COURT HAS EXPLICITLY RULED THAT THE PRIVACY PROTECTION ACT WHICH MANDATES SUBPOENAS IN MANY CASES APPLIES TO ELECTRONICALLY STORED INFORMATION AND THAT COMPUTER BULLETIN BOARDS AND ELECTRONIC MAIL ARE SAFEGUARDED BY FEDERAL WIRETAP LAWS AGAINST GOVERNMENT EAVESDROPPING THE CASE STEMMED FROM A US SECRET SERVICE RAID THREE YEARS AGO ON STEVE JACKSON GAMES AN AUSTINBASED PUBLISHER OF ROLEPLAYING GAMES AND BOOKS THE RAID ONE OF MANY THE SERVICE CONDUCTED IN SEARCH OF ELECTRONIC DOCUMENTS BELIEVED STOLEN FROM BELLSOUTH RESULTED IN THE SEIZURE OF SOME OF THE COMPANY'S COMPUTERS AND MASSES OF ELECTRONICALLY STORED INFORMATION THOUGH THE RULING ISN'T BINDING ON OTHER FEDERAL COURTS AND STILL FACES A POSSIBLE APPEAL ATTORNEYS SAY JUDGE SAM SPARKS'S OPINION HAS BROAD IMPLICATIONS FOR PRIVACY LAW AND ITS RESTRAINTS ON LAWENFORCEMENT INVESTIGATIONS LAST WEEK'S DECISION THEY NOTED COULD STRENGTHEN THE LEGAL PROTECTIONS AVAILABLE BOTH TO TRADITIONAL NEWSGATHERING CONCERNS AND PUBLISHERS AND TO THE USERS OF FASTGROWING COMPUTER SERVICES SUCH AS ELECTRONIC MAIL AND COMPUTER BULLETIN BOARDS IT'S A HIGHLY VISIBLE CASE IN THE COMPUTER WORLD SAID MARC ROTENBERG AN ATTORNEY FOR COMPUTER PROFESSIONALS FOR SOCIAL RESPONSIBILITY THE JUDGE HAS RECOGNIZED AND UPLIFTED VALUES THAT ARE TAKEN FOR GRANTED IN THE NONELECTRONIC WORLD AT THE SAME TIME SOME LAWENFORCEMENT OFFICIALS SEE THE DECISION AS A THREAT TO THEIR ABILITY TO INVESTIGATE HACKERS AND COMPUTER CRIME AND DOROTHY DENNING COMPUTER SCIENCE CHAIRWOMAN AT GEORGETOWN UNIVERSITY SAYS PAST CASES HAVE SHOWN HACKERS CAN DO GREAT DAMAGE I DON'T THINK THE GOVERNMENT'S FEAR WAS MISPLACED SHE SAID IN RECENT DECADES FEDERAL LAW AND COURT RULINGS HAVEN'T KEPT PACE WITH THE RAPID CHANGES IN TECHNOLOGY SAY ATTORNEYS SCHOOLED IN FIRST AMENDMENT AND PRIVACY CASES THE PRIVACY PROTECTION ACT OF 1980 FOR EXAMPLE GENERALLY SAFEGUARDS NEWSPAPERS BROADCASTERS AND PUBLISHERS FROM UNREASONABLE GOVERNMENT SEARCH OR SEIZURE BY FORCING LAWENFORCEMENT OFFICIALS TO GET A SUBPOENA BEFORE THEY CAN DEMAND WORK PRODUCT SUCH AS A REPORTER'S NOTES THAT PROCESS GIVES THE TARGET OF THE SUBPOENA A CHANCE TO CONTEST THE GOVERNMENT'S DEMANDS BUT THESE DAYS EVEN TRADITIONAL PUBLISHERS DO ALL THEIR WORK ON COMPUTERS SAYS MIKE GODWIN COUNSEL FOR THE ELECTRONIC FRONTIER FOUNDATION A COMPUTERUSER CIVIL RIGHTS GROUP AND UNTIL NOW NO FEDERAL COURT HAS SAID THAT ELECTRONICALLY STORED FILES AND INFORMATION IN COMPUTERS ARE SPECIFICALLY PROTECTED UNDER THE ACT ALSO SIGNIFICANT IS JUDGE SPARKS'S REJECTION OF THE JUSTICE DEPARTMENT'S CLAIM THAT THE PRIVACY PROTECTION ACT DIDN'T APPLY TO RECORDS IT SEIZED INADVERTENTLY WHILE CARTING OFF MORE THAN 300 FLOPPY DISKS TWO COMPUTERS AND THE COMPUTER ON WHICH A BULLETIN BOARD WAS RUN IF THEY COULD SEIZE ALL THAT FROM THESE GUYS LEGALLY WHY NOT SEIZE RECORDS AT THE NEW YORK TIMES SAYS JANE KIRTLEY EXECUTIVE DIRECTOR OF THE REPORTERS COMMITTEE FOR FREEDOM OF THE PRESS MR GODWIN SAYS THE RULING ALSO EXTENDS PROTECTIONS ENJOYED BY TRADITIONAL PUBLISHERS AND NEWS ORGANIZATIONS TO THE GROWING NUMBER OF NONTRADITIONAL PUBLISHERS SUCH AS STEVE JACKSON GAMES FURTHER THE RULING MAKES CLEAR THAT JUST AS THE GOVERNMENT CAN'T WIRETAP OR RUMMAGE THROUGH THE POST OFFICE FOR AN INDIVIDUAL'S MAIL WITHOUT COURT PERMISSION IT CAN'T MONITOR ELECTRONIC MAIL SAYS JIM GEORGE AN AUSTIN ATTORNEY WHO REPRESENTED THE PUBLISHING COMPANY HE SAYS HE BELIEVES THIS RULING IS THE FIRST STEP TOWARD TREATING ELECTRONIC MAIL AND BULLETIN BOARDS LIKE MORE TRADITIONAL MEANS OF COMMUNICATION THE CONCEPT OF PRIVACY IN COMMUNICATIONS SHOULDN'T DEPEND ON THE MEDIUM OF DELIVERY HE SAYS THE SECRET SERVICE AND THE JUSTICE DEPARTMENT DECLINED COMMENT ON THE RULING IN COURT HOWEVER A FEDERAL ATTORNEY ARGUED STRENUOUSLY AGAINST APPLYING THE PRIVACY AND WIRETAP LAWS IN THIS CASE SAYING THAT SO DOING WOULD MAKE IT VERY HARD FOR THE GOVERNMENT TO GET INFORMATION OR COMPUTER DOCUMENTS REPRESENTING CRIMINAL ACTIVITY IN HIS OPINION JUDGE SPARKS NOTED THAT THE SECRET SERVICE HAD LEGITIMATE CONCERNS ABOUT INTRUSIONS INTO COMPUTER SYSTEMS INCLUDING THOSE OF TELEPHONE SYSTEMS AND THE DEFENSE DEPARTMENT BUT IN ITS RUSH TO RAID THE SECRET SERVICE DIDN'T CARE WHAT OTHER INFORMATION IT SEIZED INCIDENTALLY OR WHAT IMPACT ITS ACTIONS HAD ON THE COMPANY HE SAID DON DELANEY A SENIOR INVESTIGATOR FOR COMPUTER CRIME AND TELECOMMUNICATIONS FRAUD WITH THE NEW YORK STATE POLICE SAYS JUDGE SPARKS'S OPINION IS SURE TO BE CLOSELY STUDIED BY LAWENFORCEMENT AGENCIES AROUND THE COUNTRY WHETHER IT'S BINDING HERE OR NOT ANY DECISION THAT'S LOGICAL AND COMPLIES WITH WHAT THE LAW SAYS WILL BE LOOKED AT FOR GUIDANCE HE SAYS THE SEARCH AND SEIZURE AT STEVE JACKSON GAMES IN MARCH 1990 WAS PART OF A WIDER CRACKDOWN ON COMPUTER HACKING PROVOKED BY WIDELY REPORTED COMPUTER VIRUSES AGENTS SAYING THEY BELIEVED LOYD BLANKENSHIP AN EMPLOYEE OF STEVE JACKSON GAMES MIGHT HAVE STORED A COPY OF TELEPHONE DOCUMENTS ON A COMPANYRUN BULLETIN BOARD USED A SEARCH WARRANT TO SEIZE SEVERAL COMPUTERS AND LARGE AMOUNTS OF ELECTRONICALLY STORED DATA INCLUDING MORE THAN 160 ELECTRONIC MESSAGES AND AN ELECTRONICALLY STORED BOOK AND GAME THE COMPANY WAS ABOUT TO PUBLISH AS IT TURNED OUT THE ALLEGEDLY SENSITIVE DATA IN THE TELEPHONE DOCUMENT WAS PUBLICLY AVAILABLE FOR ABOUT 13 FROM ANOTHER BELL COMPANY NO CHARGES OF ANY KIND HAVE EVER BEEN FILED AGAINST MR BLANKENSHIP MR JACKSON OR HIS COMPANY FURTHER THERE WAS NO VALID REASON NOT TO COPY AND RETURN ALL THE SEIZED MATERIAL WITHIN HOURS OR DAYS JUDGE SPARKS SAID MR JACKSON SAID THE FOUR MONTHS' DELAY FORCED HIM TO LAY OFF EIGHT EMPLOYEES BY KEEPING ITS SEARCH WARRANT AND SEIZURE ORDER SECRET THE SECRET SERVICE DISREGARDED THE SAFEGUARDS IN FEDERAL LAWS THAT SHOULD HAVE GIVEN STEVE JACKSON GAMES A CHANCE TO CONTEST OR MODIFY THE SEIZURE ORDER THE JUDGE SAID AND DESPITE GOVERNMENT DENIALS JUDGE SPARKS SAID EVIDENCE SHOWED THE AGENCY READ AND DESTROYED MESSAGES IN VIOLATION OF FEDERAL WIRETAP LAWS MR JACKSON WAS OVERJOYED WITH THE RULING BUT HE HAD ALREADY TAKEN A SMALL MEASURE OF REVENGE HE WROTE AND SOLD NEARLY 6000 COPIES OF A NEW GAME HACKER THAT SATIRIZED BUMBLING SECRET SERVICE AGENTS AND HE SAYS THE KIND OF EVIL ROGUE HACKERS THAT EXIST MOSTLY IN THE IMAGINATION OF THE SECRET SERVICE BANKRUPTCYCOURT FILINGS FOR 1992 ROSE 3 AFTER SEVERAL YEARS OF DOUBLEDIGIT INCREASES IN 1991 THE INCREASE HAD BEEN 21 OVER THE YEAR BEFORE THE NUMBER OF BANKRUPTCY FILINGS IN THE US LAST YEAR CLIMBED TO 971517 THE AMERICAN BANKRUPTCY INSTITUTE SAID OF THAT TOTAL 92 WERE NONBUSINESS OR PERSONAL BANKRUPTCY FILINGS ABOUT THE SAME PERCENTAGE AS IN 1991 BANKRUPTCY ATTORNEYS SAID THE STATISTICS WERE AN ENCOURAGING SIGN ALAN MILLER AT THE NEW YORK LAW FIRM WEIL GOTSHAL & MANGES NOTED IN PARTICULAR THAT THERE HAVE BEEN VERY FEW HUGE CORPORATE CASES FILED IN BANKRUPTCY COURT IN RECENT MONTHS REFLECTING SOME ECONOMIC IMPROVEMENT ESPECIALLY IN THE NORTHEAST BUT TAMPA FLA ATTORNEY CHARLES TATELBAUM AN AMERICAN BANKRUPTCY INSTITUTE VICE PRESIDENT SAID IT IS STILL TOO EARLY TO PREDICT THAT BANKRUPTCIES OR THE ECONOMY ARE BEGINNING TO STABILIZE STATE BY STATE THE BIGGEST INCREASE IN BANKRUPTCY FILINGS OCCURRED IN DELAWARE WHERE 32 MORE BANKRUPTCY CASES WERE FILED LAST YEAR THAN IN 1991 HAWAII SAW THE SECONDSTEEPEST INCREASE WITH 30 FOLLOWED BY CONNECTICUT 20 MASSACHUSETTS 19 CALIFORNIA 16 MARYLAND 14 AND NEW YORK 14 HUGH RAY OF HOUSTON LAW FIRM ANDREWS & KURTH PREDICTED THAT BANKRUPTCY FILINGS FOR 1993 ALSO WILL RISE ONLY SLIGHTLY NATIONWIDE ALTHOUGH HE SAID THE WEST COAST IS LIKELY TO SEE A STEEPER INCREASE THAN IT DID IN 1992 MR RAY WHO REPRESENTS MANY LENDERS SAID THE LOWER RATE OF INCREASE FOR 1992 STEMS PARTLY FROM A DECREASE IN TROUBLED REALESTATE PROPERTIES ENDING UP IN BANKRUPTCY COURT THE FEDERAL COURTS ARE SEEKING EMERGENCY FUNDS TO PAY COURTAPPOINTED ATTORNEYS AND CIVIL JURORS THE JUDICIAL CONFERENCE SAID IT ASKED CONGRESS FOR AN ADDITIONAL 708 MILLION TO COVER THE COST OF PAYING COURTAPPOINTED ATTORNEYS THROUGH THE FISCAL YEAR ENDING SEPT 30 AND ANOTHER 75 MILLION FOR JUROR FEES THE POLICYMAKING BODY SAID THAT WITHOUT ADDITIONAL FUNDING COURTS WOULD BE RUNNING OUT OF FUNDS FOR LAWYERS BEGINNING IN APRIL WITH JUROR FUNDS DEPLETED STARTING IN MAY IN ADDITION THE CONFERENCE SAID IT WOULD ASK JUDGES TO FORGO A COSTOFLIVING INCREASE NEXT YEAR AS PART OF OTHER BELTTIGHTENING MOVES OTHER EFFORTS INCLUDE RAISING ATTORNEYREGISTRATION FEES AND CHARGING FEDERAL AGENCIES FOR ACCESS TO AN ELECTRONIC FEDERAL COURT REFERENCE SERVICE THE BUDGET REQUEST REFLECTS WHAT JUDGES BELIEVE TO BE CHRONIC UNDERFUNDING OF THE COURTS IN RECENT YEARS IN THE FACE OF GROWING FILINGS ALTHOUGH OFFICIALS BELIEVE THE SITUATION HAS BECOME INCREASINGLY BLEAK THE 247 BILLION THAT CONGRESS APPROPRIATED FOR THE CURRENT FISCAL YEAR FOR INSTANCE IS 130 MILLION LESS THAN THE AMOUNT NEEDED TO MAINTAIN SERVICES ACCORDING TO THE ADMINISTRATIVE OFFICE OF THE US COURTS OFFICIALS SAID AS MANY AS 22000 NEW CRIMINAL CASES WOULD BE AFFECTED IF NEW MONEY FOR THE COURTAPPOINTED ATTORNEYS WERE DELAYED UNTIL OCTOBER THE COURTS EXPERIENCED SIMILAR SHORTAGES IN FUNDING EACH OF THE LAST TWO YEARS BUT NEVER SO EARLY IN THE YEAR IT IS FAIRLY CERTAIN THERE WILL BE LAWYERS WHO ASK FOR CASES TO BE DISMISSED AND LAWYERS WHO ASK THAT THEIR CLIENTS BE RELEASED FROM JAIL SAID AN ADMINISTRATIVE OFFICE SPOKESMAN LAST YEAR WE ASKED LAWYERS TO TAKE CASES WITH THE EXPECTATION THAT THEY WILL GET PAID DOWN THE ROAD SOME LAWYERS WILL DO THAT AND SOME WILL REFUSE THE CONFERENCE'S ANNOUNCEMENT PRECEDED BY A DAY THE 30TH ANNIVERSARY OF THE US SUPREME COURT'S LANDMARK GIDEON VS WAINWRIGHT DECISION WHICH GUARANTEED THE RIGHT TO COUNSEL IN CRIMINAL CASES WHO'S NEWS SEVENTEEN OF THE ATTORNEYS AT MILLER SINGER RAIVES & BRANDES A 22LAWYER NEW YORK FIRM KNOWN FOR ITS INSURANCE AND REINSURANCE PRACTICE JOINED ROSENMAN & COLIN A 200LAWYER NEW YORK FIRM MILLER SINGER'S CHIEF CLIENTS INCLUDED CIGNA CORP AND THE AMERICAN ASSOCIATION OF RETIRED PERSONS THE WASHINGTON OFFICE OF BALLARD SPAHR ANDREWS & INGERSOLL A PHILADELPHIA LAW FIRM ADDED FIVE LAWYERS SPECIALIZING IN REAL ESTATE AND HOUSING THE GROUP LED BY PARTNER ALLAN WINN JOINED BALLARD SPAHR FROM WASHINGTON LAW FIRM COLTON & BOYKIN WADE LAMBERT AND RICHARD B SCHMITT CONTRIBUTED TO THIS COLUMN 9303180055 930318 FOREIGN EXCHANGE DOLLAR IS MIXED AS TRADERS AWAIT WORD ON WHETHER GERMANY WILL LOWER RATES BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THE MARKET TRANSFIXED BY ANTICIPATION OVER THE OUTCOME OF TODAY'S BUNDESBANK MEETING THE DOLLAR MEANDERED IN A NARROW RANGE YESTERDAY ENDING GENERALLY MIXED LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16615 MARKS DOWN FROM 16640 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11720 YEN UP FROM 11700 YEN STERLING WAS TRADING AT 14530 UP FROM 14480 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 16623 MARKS AND AT 11713 YEN WE ARE DEFINITELY ON HOLD SAID KEVIN WEIR A VICE PRESIDENT AT CANADIAN IMPERIAL BANK OF COMMERCE LTD DEALERS SAID MARKET OPINION WAS DIVIDED ON WHETHER THE GERMAN CENTRAL BANK COUNCIL MEETING WILL RESULT IN A CUT IN GERMANY'S LOMBARD AND DISCOUNT RATES NOW AT 9 AND 8 RESPECTIVELY BUT YESTERDAY BROUGHT FEW ADDED CLUES TO THE BUNDESBANK'S PLANS DEALERS SAID GIVING INVESTORS LITTLE REASON TO TRADE WHAT LITTLE ACTIVITY THAT DID OCCUR WAS CONFINED TO THE YEN AND THE SWISS FRANC THE JAPANESE CURRENCY SLIPPED AGAINST THE DOLLAR IN WHAT DEALERS CALLED A LARGELY TECHNICAL RESPONSE TO TUESDAY'S SHARP YEN RALLY THE SWISS FRANC SLUMPED AGAINST THE MARK AS INVESTORS SQUARED POSITIONS BEFORE THE BUNDESBANK MEETING SAID SIOBHAN LACKEY A BANK JULIUS BAER & CO TRADER DEALERS SAID THE VIGIL AHEAD OF THE BUNDESBANK MEETING SAPPED ACTIVITY IN OTHER AREAS OF THE FOREIGN CURRENCY MARKET ALTHOUGH THERE IS BROAD CONSENSUS THAT GERMANY'S TROUBLED ECONOMY EVENTUALLY WILL FORCE THE CENTRAL BANK'S HAND DEALERS FOUND LITTLE AGREEMENT ON WHEN THE BUNDESBANK WILL FINALLY GIVE IN THERE SEEMS TO BE A REAL DIFFERENCE OF OPINION SAID CANADIAN IMPERIAL'S MR WEIR BUT WITH A BROAD SPECTRUM OF EXPECTATIONS ALREADY FACTORED INTO EXCHANGE RATES DEALERS SAID THE MARKET'S RESPONSE COULD BE UNDERWHELMING IF THE GERMANS DO OR DON'T CUT RATES I THINK THE DOLLAR'S GOING DOWN SAID MS LACKEY DEALERS SAID THOSE LOOKING FOR A RATE CUT EXPECT THE BUNDESBANK TO TRIM A HALFPOINT FROM THE OFFICIAL RATES IF THE BUNDESBANK OBLIGES MS LACKEY SAID KNEEJERK DOLLAR BUYING LIKELY WOULD RAPIDLY GIVE WAY TO SELLING AS PLAYERS TOOK PROFITS AND WHILE NO RATE CUT TODAY COULD TRIGGER SOME DISAPPOINTED SELLING OF DOLLARS DEALERS SAID THE LONGERTERM OUTLOOK STILL FAVORS THE US CURRENCY EVEN IF THEY DON'T DO ANYTHING TOMORROW THE MARKET WILL STILL BE LOOKING FOR THEM TO GO AT SOME POINT SAID GILLIE AUGERI CHIEF DEALER AT SHAWMUT BANK CONNECTICUT IN HARTFORD DEALERS SAID STEADY DEMAND FOR DOLLARS IS LIKELY TO APPEAR AROUND 165 MARKS THEY PUT THE ABSOLUTE BOTTOM AT 163 MARKS I DON'T EXPECT THE DOLLAR TO TAKE A HUGE BEATING SAID MR WEIR THERE ARE PEOPLE WILLING TO BUY DOLLARS ON DIPS EVEN IF THE BUNDESBANK SURPRISES PLAYERS BY CUTTING RATES BY A FULL POINT MS AUGERI NOTED THE DOLLAR'S GAINS MIGHT BE LIMITED AS INVESTORS REALIZE THE NEXT CUT WILL BE MUCH FURTHER OFF DEALERS SAID RECENT HINTS OF RENEWED INFLATION IN THE US SO FAR HAVEN'T AFFECTED TRADERS' OUTLOOK FOR THE DOLLAR THE LABOR DEPARTMENT SAID THAT THE US CONSUMER PRICE INDEX ROSE 03 IN FEBRUARY WHILE THE CORE INDEX WHICH EXCLUDES THE FOOD AND ENERGY COMPONENTS JUMPED 05 ALTHOUGH THE OVERALL RISE WAS IN LINE WITH EXPECTATIONS THE RISE IN THE CORE RATE WAS LARGER THAN THE 03 MANY ANALYSTS HAD BEEN LOOKING FOR UNDERLINING THE DATA FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN TOLD CONGRESS THAT INFLATION TRENDS SO FAR IN 1993 ARE OFF TO A LESS THAN AUSPICIOUS START BUT MS LACKEY OF JULIUS BAER SAID THAT SO FAR THE FED DOESN'T SEEM TO BE CONSIDERING BOOSTING RATES I DON'T THINK ANYONE'S EVEN LOOKING AT THE IDEA THAT WE'RE GOING TO RAISE RATES IN THE US SHE SAID MR GREENSPAN ALSO SAID IT'S STILL TOO EARLY TO BE CONCERNED ABOUT THE INFLATION REPORTS BUT WITH THE TREND IN GERMAN RATES CLEARLY DOWNWARD DEALERS SAID THE DOLLAR IS POISED TO RISE CURRENTLY HOWEVER DEALERS SAID THE MARKET ALREADY HAS FACTORED IN AT LEAST ONE RATE CUT FROM THE BUNDESBANK LEAVING THE DOLLAR LITTLE ROOM TO RALLY RIGHT AWAY 9303180054 930318 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 HOUSTON LIGHTING & POWER CO 250 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 15 2023 PRICED AS 7 3/4 AT 99788 TO YIELD 7768 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 89 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO HOUSTON LIGHTING & POWER IS A UNIT OF HOUSTON INDUSTRIES INC ANADARKO PETROLEUM CORP 100 MILLION OF NOTES DUE MARCH 15 2003 PRICED AS 6 3/4 AT 9954 TO YIELD 6815 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO HOWARD COUNTY MARYLAND 1921 MILLION OF 1993 SERIES A REFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP THE OFFERING INCLUDES 146 MILLION OF CONSOLIDATED PUBLIC IMPROVEMENT PROJECT AND REFUNDING BONDS PRICED TO YIELD FROM 240 IN 1993 TO 565 IN 201012 THERE ARE ALSO 461 MILLION OF METROPOLITAN DISTRICT PROJECT AND REFUNDING BONDS PRICED TO YIELD FROM 240 IN 1993 TO 570 IN 2022 MOODY'S HAS RATED THE ISSUE DOUBLEA1 S&P IS EXPECTED TO ASSIGN A DOUBLEAPLUS RATING CENTRAL ARIZONA WATER CONSERVATION DISTRICT 115 MILLION OF BONDS FOR THE CENTRAL ARIZONA PROJECT PRICED BY A PAINEWEBBER INC GROUP THE OFFERING INCLUDES 113 MILLION OF SERIES 1993A CONTRACT REVENUE REFUNDING BONDS PRICED TO YIELD FROM 3 IN 1994 TO 580 IN 2010 THIS PORTION OF THE ISSUE WAS BEEN RATED DOUBLEAMINUS BY S&P MOODY'S IS EXPECTED TO ASSIGN A SINGLEA1 RATING THE ARE ALSO 2 MILLION OF SUBORDINATE CAPITAL APPRECIATION BONDS PRICED TO YIELD 270 AND 310 AT THEIR RESPECTIVE MATURITIES IN 1993 AND 1994 THEY HAVE BEEN RATED SP1PLUS BY S&P MOODY'S IS EXPECTED TO ASSIGN A SINGLEA RATING MASSACHUSETTS PORT AUTHORITY 1077 MILLION OF GENERAL REVENUE REFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP INCLUDED IN THE OFFERING ARE 568 MILLION OF SERIES 1993A BONDS PRICED TO YIELD FROM 275 IN 1994 TO 585 IN 2015 THERE ARE ALSO 509 MILLION OF SERIES 1993B BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX THEY WERE PRICED TO YIELD FROM 285 IN 1994 TO 595 IN 2018 MOODY'S IS EXPECTED TO ASSIGN A DOUBLEA RATING AND S&P IS EXPECTED TO ASSIGN A DOUBLEAMINUS RATING MARION COUNTY IND CONVENTION & RECREATIONAL FACILITIES AUTHORITY 77 MILLION OF SERIES 1993A EXCISE TAXES LEASE RENTAL REVENUE REFUNDING BONDS PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP TO YIELD FROM 340 IN 1995 TO 595 IN 2021 THE OFFERING WHICH IS INSURED BY AMBAC INDEMNITY CORP IS RATED TRIPLEA BY MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE MARCH 24 2003 PRICED AT PAR TO YIELD 622 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE NOTES WILL BE SOLD THROUGH MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE MARCH 29 2000 PRICED AT PAR TO YIELD 616 THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 42 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE NOTES WILL BE SOLD THROUGH SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE MARCH 24 1995 PRICED AT PAR TO YIELD 406 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FIVE BASIS POINTS ABOVE THE TREASURY TWOYEAR NOTE THE NOTES WILL BE SOLD THROUGH MERRILL LYNCH & CO GENERAL MOTORS ACCEPTANCE CORP 13 BILLION OF AUTOMOBILE LOAN ASSETBACKED CERTIFICATES GMAC 1993A PRICED AS 415 AT 99 7/8 TO YIELD 428 OR 95 BASIS POINTS ABOVE THE COMPARABLE TREASURY BILL CREDIT SUPPORT CONSISTS OF A 7 1/2 SUBORDINATE CLASS THAT WAS RETAINED BY GMAC THE FINANCING UNIT OF GENERAL MOTORS CORP RATED TRIPLEA BY MOODY'S AND S&P THE ISSUE WAS BROUGHT BY UNDERWRITERS LED BY MERRILL LYNCH & CO KUWAITI INVESTMENT AUTHORITY 300 MILLION OF PROMISSORY NOTES BACKED BY LOANS FULLY GUARANTEED BY THE EXPORTIMPORT BANK OF THE US PRICED BY CITICORP SECURITIES MARKETS INC THE ISSUE GUARANTEED TRADE TRUST 1993A WAS PRICED AS 486 AT PAR TO YIELD 486 OR 39 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE CERTIFICATES WERE RATED TRIPLEA BY MOODY'S AND S&P BEAR STEARNS COS 1875 MILLION OF CUMULATIVE PREFERRED STOCK PRICED THROUGH DEALERS LED BY BEAR STEARNS & CO THE 75 MILLION SHARES AT 25 EACH WERE PRICED WITH A DIVIDEND YIELD OF 788 THE ISSUE IS NONCALLABLE FOR FIVE YEARS THE SIZE OF THE OFFERING WAS RAISED FROM A PLANNED SIX MILLION SHARES THE SHARES WERE RATED SINGLEA3 BY MOODY'S AND TRIPLEB BY S&P FUTURE NOW INC AN OFFERING OF 145 MILLION COMMON SHARES PRICED AT 12375 EACH THROUGH UNDERWRITERS LED BY WILLIAM BLAIR & CO GENERAL INSTRUMENT CORP AN OFFERING OF 10 MILLION COMMON SHARES PRICED AT 3050 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PILLOWTEX CORP AN INITIAL OFFERING OF 39 MILLION SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP WITCO CORP AN OFFERING OF 25 MILLION COMMON SHARES PRICED AT 5125 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AFRICAN DEVELOPMENT BANK SUPRANATIONAL 500 MILLION OF 7 3/8 EUROBONDS DUE APRIL 6 2023 AT A REOFFER PRICE OF 9856 VIA GOLDMAN SACHS INTERNATIONAL AND LEHMAN BROTHERS BONDS YIELD 7 1/2 AT REOFFER A MARGIN OF 48 BASIS POINTS ABOVE THE 30YEAR US TREASURY NOTE FEES 5/8 BA T CAPITAL CORP UK PARENT 400 MILLION OF 6 EUROBONDS DUE APRIL 7 1998 AT ISSUE PRICE 101095 VIA CREDIT SUISSE FIRST BOSTON REOFFERED AT 9957 TO YIELD 610 A MARGIN OF 75 BASIS POINTS ABOVE TREASURYS GUARANTOR BA T INDUSTRIES PLC FEES 1 7/8 KEISEI ELECTRIC RAILWAY CO JAPAN PARENT 200 MILLION OF 1 5/8 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE APRIL 2 1997 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC GUARANTOR INDUSTRIAL BANK OF JAPAN LTD EXERCISE PERIOD OF WARRANTS APRIL 16 1993 TO MARCH 19 1997 FEES 2 1/4 HSBC HOLDINGS PLC HONG KONG PARENT 200 MILLION OF 98755 SUBORDINATED BONDS DUE APRIL 8 2018 AT REOFFER PRICE 98692 VIA SAMUEL MONTAGU & CO BONDS YIELD 1003 SEMIANNUALLY TO CALL DATE ON APRIL 8 2013 A MARGIN OF 150 BASIS POINTS ABOVE YIELD ON THE BRITISH 9 GILT DUE 2012 BONDS CALLABLE AT PAR FROM 1998 UNDER CERTAIN CONDITIONS KNOWN AS SPENS FORMULA IF NOT CALLED IN 2013 INTEREST FOR FINAL FIVE YEARS PAID AT HIGHER OF EXISTING INTEREST COUPON OR 250 BASIS POINTS ABOVE THEN PREVAILING FIVEYEAR GOVERNMENT BOND FEES 5/8 ABN AMRO BANK NV NETHERLANDS 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE APRIL 8 2005 VIA LEHMAN BROTHERS INTERNATIONAL INTEREST FLOATS AT 1/8 POINT BELOW LONDON INTERBANK OFFERED RATE MINIMUM 5 1/8 MAXIMUM 8 REOFFER PRICE 99 5/8 FEES 1/2 9303180053 930318 TWO FORMER BROKERS FOR PAINEWEBBER ARE SUED BY THE SEC NEW YORK THE SECURITIES AND EXCHANGE COMMISSION FILED SUIT AGAINST TWO FORMER PAINEWEBBER GROUP INC BROKERS INVOLVED IN A HIGHPROFILE SEC SETTLEMENT WITH PAINEWEBBER LAST MONTH IN A SUIT FILED IN US DISTRICT COURT IN HOUSTON THE SEC ACCUSED SHLOMO A SELA 55 YEARS OLD OF PROMOTING INAPPROPRIATE AND RISKY OPTIONS TRADES TO CUSTOMERS AND FALSIFYING RECORDS THE LAWSUIT SEEKS RECOVERY OF 92900 IN COMMISSIONS PAID BY INVESTORS MR SELA A HOUSTON RESIDENT HAD WORKED IN THE PAINEWEBBER HOUSTON POST OAK BRANCH OFFICE HE COULDN'T BE REACHED TO COMMENT THE SEC MADE SIMILAR CHARGES AGAINST 42YEAROLD ROY PHILLIP LA BOLLE JR DARIEN ILL IN FEDERAL COURT IN CHICAGO ALLEGING THAT HE MADE 53000 IN COMMISSIONS FROM QUESTIONABLE TRANSACTIONS AT PAINEWEBBER'S OAK BROOK ILL OFFICE HE COULDN'T BE REACHED EITHER BOTH SUITS SEEK PERMANENT INJUNCTIONS ENJOINING THE MEN FROM FURTHER VIOLATIONS OF SECURITIES LAWS IN FEBRUARY PAINEWEBBER AGREED NOT TO OPEN ANY NEW BROKERAGE ACCOUNTS AT FOUR OF FIVE BRANCH OFFICES FOR ONE MONTH THE UNUSUAL PENALTY REFLECTED THE SEC'S CLAIM THAT THE CONDUCT OF SIX BROKERS IN FIVE BRANCHES HAD COST CUSTOMERS 26 MILLION MOST OF WHICH THE FIRM HAS REPAID PAINEWEBBER DIDN'T ADMIT OR DENY THE ALLEGATIONS 9303180052 930318 LEISURE & ARTS BOOKSHELF GULF WAR REVISITED BY TONY HORWITZ THE GULF WAR WAS OFTEN A DEPRESSING STORY FOR PRINT REPORTERS AT ONE POINT WHILE DICTATING COPY FROM SAUDI ARABIA AN EDITOR IN NEW YORK INTERRUPTED TO SAY HOLD IT IT'S ON CNN THEN HE HELD THE PHONE UP TO THE TV SET SO I COULD CATCH THE LATEST NEWS OF A CONFLICT I WAS REPORTING FOR THE NEXT DAY'S PAPER WHY BOTHER TO WRITE ABOUT A WAR THAT EVERYONE THINKS THEY'VE ALREADY WITNESSED MICHAEL KELLY ANSWERS THAT QUESTION IN MARTYRS' DAY CHRONICLE OF A SMALL WAR RANDOM HOUSE 384 PAGES 23 THE OVERLY MODEST TITLE OF WHAT IS ACTUALLY A GRAND TOUR OF FORCES A FREELANCER DURING THE WAR AND NOW A NEW YORK TIMES REPORTER MR KELLY POPS UP EVERYWHERE AT GROUND ZERO IN IRAQ AS THE FIRST BOMBS HIT IN ISRAEL AS IRAQI SCUDS LAND IN KUWAIT WITH ADVANCING ALLIED TANKS HE EVEN TAKES A FEW IRAQI PRISONERS OF HIS OWN AND IN KURDISTAN AS THE WAR'S GRIM LEGACY OF MISERY AND EXILE UNFOLDS BUT WHAT MAKES THIS A LIVELY READ TWO YEARS AFTER THE WAR AND WHAT DISTINGUISHES IT FROM OTHER GULF WAR BOOKS IS THE AUTHOR'S SHARP PROSE LIKE A PAINTER MR KELLY PUSHES WORDS AROUND THE PAGE UNTIL A FAMILIAR IMAGE SEEMS MORE VIVID THAN IT DID WHEN IT FIRST FLASHED IN FRONT OF OUR EYES MR KELLY'S STYLE RESEMBLES THAT OF THE BRITISH TRAVELER JONATHAN RABAN WHO DECORATES HIS BOOKS WITH TRUFFLESHAVINGS OF WIT AND WORDPLAY AND LIKE MR RABAN MR KELLY IS BEST WHEN RECALLING BANAL EVENTS A PARTICULARLY FINE PASSAGE OCCURS FURTHEST FROM THE ACTION IN EGYPT IN JUST A FEW PAGES MR KELLY PERFECTLY CAPTURES THE SLY LASSITUDE OF ARAB OFFICALDOM THE INFURIATING YET ENDEARING PACE OF EGYPTIAN TRAVEL AND THE FILTH OF CAIRO WHICH HE SAYS MADE BAGHDAD LOOK AS IF IT HAD JUST BEEN SCRUBBED BY DUTCH HAUSFRAUS UNFORTUNATELY AT THE START OF MARTYRS' DAY MR KELLY ALMOST FALLS ON HIS SWORD RATHER THAN CONFINE THE BOOK TO A RIPPING GOOD YARN ABOUT THE WAR MR KELLY FRONTLOADS HIS STORY WITH A 50PAGE PRELUDE THAT COMMITS MANY OF THE JOURNALISTIC SINS HE AVOIDS LATER ON NOTEBOOKEMPTYING QUOTES THAT RUN FOREVER OVERWROUGHT PROSE DULL PADDING ON HISTORY AND POLITICS WHEN THE READER FINALLY REACHES THE FIRST NIGHT'S BOMBING OF IRAQ IT'S AS IF HE'S BEGUN A NEW AND INFINITELY BETTER BOOK AS THE NARRATIVE GATHERS PACE MR KELLY ALSO WRITES HIMSELF INTO THE STORY WHILE STILL AVOIDING THE FLAKJACKETED MACHISMO SO COMMON TO WAR MEMOIRS AT FIRST PERHAPS BECAUSE HE IS TRAVELING WITH A STOIC BRIT MR KELLY IS A TAD UNDERSTATED WE WERE IN A VERY BAD SITUATION HE WRITES OF A NEARFATAL AIR STRIKE LATER THOUGH MR KELLY'S VOICE BECOMES WARM SELFDEPRECATING AND FRANK AND FAMILIAR TO THIS REVIEWER WHO RAN INTO THE AUTHOR DURING THE WAR FOR ANYONE WHO HAS SEEN A BATTLEFIELD LITTERED WITH DEAD HIS CONFESSION THAT IT INDUCES THE SAME KIND OF HOT AND SHAMEFUL THRILL AS PORNOGRAPHY RINGS DISTURBINGLY TRUE SO TOO DOES HIS GRAPHIC RUNIN WITH MIDEAST DYSENTERY HAVING SURVIVED A WAR DIET OF CANDY BARS NICOTINE SWEET TEA SLEEP DEPRIVATION AND INTERMITTENT TERROR HE SUCCUMBS IN KURDISTAN TO STOMACH TROUBLE SO SEVERE THAT I WAS SOON ON MY KNEES CLUTCHING MYSELF AND BARFING LIKE A CAT WITH HAIRBALLS YET WITH TYPICAL UNSENTIMENTALITY HE RECOGNIZES THAT SUCH MISERY AS EXPERIENCED BY IRAQI REFUGEES MAKES FOR POOR NEWS COPY EACH DAY THE PEOPLE WHO ARE DYING THUS LOOK MORE OR LESS AS THEY DID THE DAY BEFORE THE WORLD ATTENTION SPAN FOR A GIVEN POPULATION OF REFUGEES IS ABOUT A WEEK AT MOST WHILE MR KELLY AVOIDS PASSING JUDGMENT ON THE GULF CONFLICT SUCH PASSAGES ARE A CRUEL COMMENTARY ON THE WAR'S INCONCLUSIVE END WHICH HAS LEFT KURDS AND OTHER IRAQIS STILL SUFFERING UNDER SADDAM HUSSEIN HE HAMMERS THIS HOME WITH A POSTWAR VISIT TO BAGHDAD WHERE HE FINDS SADDAM'S CRONIES THRIVING WHILE OTHERS CAN BARELY SURVIVE ALSO POINTED IS MR KELLY'S DESCRIPTION OF AN AMERICAN TURKEY SHOOT OF IRAQIS FLEEING KUWAIT FOR THOSE WHO SPEAK BLITHELY OF SURGICAL AIR STRIKES HIS CATALOG OF FRIED AND FILLETED BODIES IS A REMINDER THAT HIGHTECH WEAPONS INFLICT CARNAGE AS AWFUL AS ANYTHING THAT SHILOH OR THE SOMME PRODUCED PERHAPS EVEN MORE AWFUL BECAUSE AS MR KELLY NOTES IT WAS DIFFICULT FOR THE AMERICANS WHO HAD DONE THEIR KILLING ALMOST ENTIRELY FROM A DISTANCE TO FEEL A CONNECTION WITH THOSE THEY KILLED MARTYRS' DAY IS A CHANCE FOR AMERICAN READERS TO FEEL THAT CONNECTION AND TO REVISIT THE WAR WITH MUCH MORE WISDOM AND WIT THAN REALTIME IMAGES OFFERED THE FIRST TIME ROUND MR HORWITZ COVERED THE GULF WAR FOR THE JOURNAL 9303180051 930318 TECHNOLOGY & MEDICINE WESTERN DIGITAL SEES 3RDPERIOD NET BELOW FORECASTS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL WESTERN DIGITAL CORP CITING THE PRICE WAR IN THE COMPUTER DISKDRIVE INDUSTRY SAID IT EXPECTS RESULTS IN THE THIRD QUARTER ENDING MARCH 27 TO BE SIGNIFICANTLY BELOW ANALYSTS' PERSHARE FORECASTS OF 20 CENTS TO 26 CENTS THE SHORTFALL IS A DIRECT RESULT OF SEVERE PRICE CUTS IN THE 35INCHDIAMETER DISK DRIVE BUSINESS THE IRVINE CALIF COMPANY SAID SALES OF 35INCH DRIVES THE CURRENT STANDARD IN DESKTOP PERSONAL COMPUTERS MAKE UP ROUGHLY 80 OF WESTERN DIGITAL REVENUE WESTERN DIGITAL SHARES SANK 18 TO 6625 FROM 8125 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING MORE THAN 31 MILLION SHARES CHANGED HANDS THE ANNOUNCEMENT CAME LATE IN THE TRADING SESSION ALTHOUGH AT LEAST ONE ANALYST HAD CUT HIS ESTIMATE EARLIER IN THE DAY SEVERE COMPETITIVE PRICING IN THE 170 AND 200 MEGABYTE 35INCH CAPACITIES COMMENCED THREE WEEKS AGO AND HAS INTENSIFIED SINCE THEN CHARLES A HAGGERY PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT AS A RESULT OUR GROSS MARGINS WILL FALL BELOW CURRENT EXPECTATIONS THE DAMAGE WAS MITIGATED SLIGHTLY BY STRENGTHENED MARGINS IN THE COMPANY'S SMALLER SEMICONDUCTOR BUSINESS INDUSTRY ANALYSTS MENTIONED TWO RIVAL CALIFORNIA COMPANIES CONNER PERIPHERALS INC AND MAXTOR CORP AS THE MOST AGGRESSIVE PRICE CUTTERS THESE DAYS LATE LAST MONTH CONNER PERIPHERALS SAID ITS FIRSTQUARTER PROFIT WOULD FALL SHORT OF EXPECTATIONS BECAUSE OF PRICE EROSION AND OTHER FACTORS AT CURRENT PRICES PEOPLE ARE JUST EXCHANGING MONEY AND COMPANIES ARE MAKING VERY LITTLE PROFIT THEY ARE JUST KEEPING THE FACTORY DOORS OPEN AND ABSORBING OVERHEAD SAID JAMES A STONE AN ANALYST AT PENNSYLVANIA MERCHANT GROUP LTD IN PHILADELPHIA MR STONE SLASHED HIS THIRDQUARTER ESTIMATE TO FIVE CENTS A SHARE FROM 30 CENTS THE BIGGEST PRICE CUTS TEND TO COME IN THE LAST TWO WEEKS OF THE QUARTER HE CAUTIONED WHILE THE COMPANY STILL EXPECTS TO BE PROFITABLE IN THE QUARTER NOBODY IS GUARANTEEING IT HE SAID ROBERT J BLAIR A WESTERN DIGITAL VICE PRESIDENT SAID LATE YESTERDAY THAT THE COMPANY IS COMFORTABLE WITH ANALYSTS' REVISED ESTIMATES RANGING BETWEEN FIVE CENTS A SHARE AND 10 CENTS A SHARE EYEING YESTERDAY'S SHARP DECLINE IN THE STOCK PRICE MR STONE THE ANALYST ALSO RAISED THE POSSIBILITY THAT THE COMPANY COULD FACE LAWSUITS FROM DISGRUNTLED INVESTORS WHO PURCHASED SHARES AT 8 EACH IN A SECONDARY OFFERING IN JANUARY MR BLAIR DECLINED TO COMMENT WHILE IT HAS BEEN FORCED TO CUT PRICES TO KEEP CUSTOMERS WESTERN DIGITAL SAID IT HAS BEEN ABLE TO MAINTAIN A PREMIUM OVER COMPETITORS' PRICES BECAUSE OF ITS TECHNOLOGY LEADERSHIP POSITION WESTERN DIGITAL GETS 210 MEGABYTES ON A SINGLE PLATTER DRIVE NOBODY ELSE IN THE MAINSTREAM INDUSTRY HAS THAT RIGHT NOW A COMPANY SPOKESMAN SAID IN THE QUARTER ENDED MARCH 28 1992 WESTERN DIGITAL REPORTED A NET LOSS OF 186 MILLION OR 64 CENTS A SHARE ON REVENUE OF 2293 MILLION FOR THE SIX MONTHS ENDED DEC 26 THE COMPANY EARNED 111 MILLION OR 36 CENTS A SHARE ON REVENUE OF 6146 MILLION 9303180050 930318 PITCHING PARADISE TIMESHARE CONDO SALES ARE CLIMBING RAPIDLY AMID MANY GRIPES A LOT OF OWNERS ARE HAPPY BUT MANY PEOPLE DEPLORE AGGRESSIVE SALES TACTICS DISCORD ALONG A MAUI STREET BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL LAHAINA HAWAII TO AN UNSUSPECTING VACATIONER THIS SEASIDE TOWN'S FRONT STREET RESEMBLES MANY A TROPICAL TOURIST STRIP IT HAS ART GALLERIES SOUVENIR BOUTIQUES TSHIRT SHOPS AND BARKERS BARKING AT TOURISTS COME ON OVER FOLKS WANT A DISCOUNT SHOUTS A MAN FROM A BOOTH THAT TOUTS A 45 PARASAIL RIDE FOR ONLY 20 THE CATCH A VISITOR MUST FIRST SIT THROUGH A PRESENTATION ON A VACATION PROPERTY AN INVESTMENT BETTERKNOWN AND OFTEN REVILED AS A TIMESHARE IN FACT 17 OF THE 19 TOURISTINFORMATION BOOTHS ALONG THIS HALFMILE STRIP ARE FRONTS FOR TIMESHARE COMPANIES WHICH BUY OR BUILD RESORT CONDOMINIUMS AND THEN SELL BLOCKS OF TIME IN THEM FOR A COUPLE OF YEARS IN THE MID1980S US TIMESHARE SALES SLUMPED AMID FINANCIAL SCANDALS AND CHARGES OF MISMANAGEMENT AT SOME PROPERTIES BUT TODAY THE INDUSTRY IS REBOUNDING IN HAWAII AND ELSEWHERE HELPING THE SURPRISING RESURGENCE IS THE GROWING ROLE OF BIG REPUTABLE COMPANIES SUCH AS WALT DISNEY CO MARRIOTT CORP AND HILTON HOTELS CORP IN ADDITION THOMAS C FRANKS PRESIDENT OF THE AMERICAN RESORT DEVELOPMENT ASSOCIATION THE INDUSTRY'S MAIN TRADE GROUP SAYS A LOT OF THE BUGS HAVE BEEN WORKED OUT OF TIMESHARING NEVERTHELESS THE INDUSTRY STILL IS PLAGUED BY MANY OF THE OLD COMPLAINTS OF FRAUD AND DECEPTION MANY VISITORS THAT SIGN UP FOR THE CHEAP LUAUS PARASAILING TOURS AND SNORKELING AT BOOTHS HERE ON MAUI AND ELSEWHERE IN HAWAII FIND THEMSELVES TRAPPED IN HIGHPRESSURE SALES PITCHES THAT DRONE ON FOR HOURS AND THOSE THAT BUY THEIR SLICES OF PARADISE OFTEN FIND THEMSELVES STUCK WITH MOUNTING MAINTENANCE FEES WHICH NOW AVERAGE 250 A YEAR AND LITTLE WAY TO SELL OUT PAUL AND JO PELTIER OF GRANTS PASS ORE HAVE TRIED WITHOUT LUCK FOR FOUR YEARS TO SELL THEIR WAIKIKI TIMESHARE THE PELTIERS SAY THEY SUCCUMBED TO A SALESMAN'S PRESSURE AND BELIEVED HIS ASSURANCES THAT THEY COULD SELL AT A FAT PROFIT WE MUST BE ONE OF THE SUCKERS BORN EVERY MINUTE THAT PT BARNUM OFTEN REFERRED TO MRS PELTIER SAYS MANY LOCALS HERE AREN'T ANY HAPPIER THEY COMPLAIN THAT TIMESHARE OPERATORS BLIGHT THE TOURIST STRIP WITH A SNAKEOILSALES ATMOSPHERE ALIENATE VISITORS AND CROWD OUT ORDINARY TOURISM BUSINESSES THE PROMOTERS SAYS ROGER DUBIN DIRECTOR OF THE MAUI VISITORS BUREAU ARE JUST LIKE LOCUSTS THEY MOVE IN DESTROY A TOWN'S REPUTATION AND MOVE ON THE WORD TIMESHARE CONJURES UP NEGATIVE IMAGES IN HAWAII STATE OFFICIALS HAVE ASKED THE STATE ATTORNEY GENERAL WHETHER IT WOULD BE POSSIBLE TO FORCE PROMOTERS TO USE THE WORD AT THEIR ACTIVITY BOOTHS IN ADDITION THE LEGISLATURE IS CONSIDERING WAYS TO STRENGTHEN ITS TIMESHARE LAWS WHICH A STATE AUDITOR'S REPORT CONCLUDES DON'T FULLY PROTECT BUYERS THUS THE STATE IS A CLOSELY WATCHED BATTLEGROUND OVER TIMESHARE OPERATORS' RIGHTS TO DO BUSINESS AS USUAL THE TIMESHARE CONCEPT WHICH ORIGINATED IN THE FRENCH ALPS WAS IMPORTED IN THE EARLY 1970S AND SPREAD RAPIDLY IN US VACATION SPOTS SUCH AS HAWAII CALIFORNIA AND FLORIDA BUT IT SOON LED TO SOME DEBACLES ONE OF MARYLAND'S LARGEST TIMESHARE DEVELOPERS WAS SENTENCED TO 20 YEARS IN PRISON IN 1991 FOR BILKING MORE THAN 1000 BUYERS OUT OF 4 MILLION CALIFORNIA TIMESHARE DEVELOPER GLEN IVY RESORTS INC DECLARED BANKRUPTCY LAST YEAR AMID STATE AND COUNTY INVESTIGATIONS INTO VARIOUS COMPLAINTS IN LAS VEGAS UNITED RESORTS INC DECLARED BANKRUPTCY SEVERAL YEARS AGO AFTER OFFICIALS INVESTIGATED SOME 400 COMPLAINTS RANGING FROM SALES MISREPRESENTATION TO FRAUDULENT DIVERSION OF FUNDS AND THEN REVOKED ITS LICENSE THOUGH COMPLAINTS OVERALL SEEM TO BE FAR FEWER NOW THAN IN TIMESHARES' EARLY YEARS NEVADA OFFICIALS HAVE INVESTIGATED MORE THAN THREE DOZEN CASES SINCE 1990 AND OFFICIALS IN CALIFORNIA AND FLORIDA SAY THEY STILL GET COMPLAINTS SO DOES THE FEDERAL TRADE COMMISSION NEVERTHELESS SALES ARE RISING STEADILY THE NUMBER OF TIMESHARE UNITS SOLD WORLDWIDE SOARED TO 440000 IN 1991 FROM 240000 IN 1986 AND THE DOLLAR VOLUME ROSE TO 374 BILLION FROM 161 BILLION 1992 FIGURES AREN'T AVAILABLE CARL BURLINGAME EDITOR AND PUBLISHER OF RESORT DEVELOPMENT AND OPERATION MAGAZINE SAYS SATISFACTION LEVELS ARE HIGHER NOW BECAUSE MANY TIMESHARES ARE BEING SOLD BY BIG COMPANIES THAT EMPHASIZE QUALITY MORE THAN THEIR SMALLER PREDECESSORS DID ONE OF THE EARLIEST BIG PLAYERS MARRIOTT LAUNCHED ITS TIMESHARE FORAY IN 1984 TO COMPLETE AND DIVERSIFY ITS RESORTPRODUCT LINE IT HAS BUILT SOME 1200 TIMESHARE CONDOMINIUMS SAYS ROBERT A MILLER EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF MARRIOTT OWNERSHIP RESORTS INC A UNIT BASED IN LAKELAND FLA DISNEY SEEKING SYNERGY FROM ITS RESORT AND THEMEPARK BUSINESSES OPENED ITS FIRST TIMESHARE RESORT IN 1991 AT DISNEYWORLD IN ORLANDO IN THE FIRST 12 MONTHS THE COMPANY EXCEEDED PROJECTIONS BY SELLING MORE THAN 3000 TIMESHARE MEMBERSHIPS AND IT PLANS TO EXPAND ELSEWHERE SAYS MARK PACALA SENIOR VICE PRESIDENT OF DISNEY VACATION CLUB AND HILTON HOTELS ENTERED THE TIMESHARE MARKET LAST YEAR THROUGH A JOINT VENTURE WITH ORLANDOBASED GRAND VACATIONS LTD THE VENTURE NOW MARKETS AT RESORTS IN SOUTH FLORIDA AND PLANS TWO BIG TIMESHARE PROJECTS IN LAS VEGAS HILTON IS ALSO WORKING ON PROJECTS IN HAWAII CALIFORNIA AND SOUTH CAROLINA COGNIZANT OF THE INDUSTRY'S UNSAVORY REPUTATION OFFICIALS AT THESE COMPANIES SAY THEY GO TO GREAT LENGTHS TO AVOID PROBLEMS BY AMONG OTHER THINGS NOT TOLERATING HIGHPRESSURE SALES TACTICS IT'S JUST PLAIN GOOD BUSINESS TO REALIZE THAT YOU CAN'T BEAT UP YOUR CUSTOMERS SAYS ALLEN TENBROEK MANAGING EXECUTIVE OF THE HILTON JOINT VENTURE AND IN FACT MANY TIMESHARE OWNERS ARE PLEASED WITH THEIR PURCHASES SOME OWN MANY UNITS IN DIFFERENT RESORTS PRAISE THEIR HIGH QUALITY AND MAKE FULL USE OF THEM IT'S THE BEST THING THAT EVER HAPPENED TO MY FAMILY AND MYSELF SAYS YALE DOLGINOW A MINNEAPOLIS BUSINESS OWNER WHO OWNS FOUR WEEKS OF MARRIOTT TIMESHARES IT'S A GREAT WAY FOR A FAMILY TO TAKE A VACATION I CAN GET UP IN THE MORNING AND DO MY JOGGING AND COME BACK AND FEEL LIKE I'M AT HOME MR DOLGINOW CONCEDES HOWEVER THAT TIMESHARES ARE NOT FOR EVERYONE HE SAYS A TIMESHARE OWNER HAS TO BE FLEXIBLE FOR ONE THING BECAUSE LODGING OFTEN MUST BE RESERVED SIX MONTHS OR MORE IN ADVANCE IN FACT SWAPS INTO OTHER RESORTS ARE FREQUENTLY LIMITED BY AVAILABILITY PROBLEMS IF THEY TRY TO SELL TIMESHARE OWNERS RUN UP AGAINST THE BIGGEST HEADACHE THE LACK OF AN ESTABLISHED RESALE MARKET AND WHEN OWNERS DO SELL THEY CAN SUFFER BIG LOSSES BECAUSE OFTEN THE ORIGINAL PRICE WHICH AVERAGES 9500 FOR ONE WEEK'S USE EACH YEAR INCLUDES PREMIUMS OF AS MUCH AS 40 TO COVER SALES COSTS RANDY RAGON A TIMESHARE BROKER IN HONOLULU SAYS HE TYPICALLY RESELLS UNITS AT ONETHIRD TO 40 OFF THE ORIGINAL PURCHASE PRICE AND CHARGES A 20 COMMISSION CLINTON BURR DIRECTOR OF THE RESORT PROPERTY OWNERS' ASSOCIATION A TIMESHAREOWNERS GROUP HAS COLLECTED HUNDREDS OF LETTERS OF COMPLAINT FROM OWNERS AT HAWAII RESORTS AMONG THEM ARE KEITH AND LORI ANN HUNTER WHO WERE HONEYMOONING SIX YEARS AGO WHEN THEY TOOK UP AN OFFER FOR A DAY'S FREE RENTAL CAR FOR ATTENDING A TIMESHARE PITCH THE SCHERERVILLE IND COUPLE BOUGHT A TWOBEDROOM TIMESHARE ON WAIKIKI BEACH FOR 8700 BUT NEVER RETURNED TO USE IT AND COULDN'T ARRANGE SWAPS AT CONVENIENT TIMES MEANWHILE ANNUAL MAINTENANCE FEES HAVE JUMPED 76 TO 300 THE HUNTERS LISTED THE UNIT THROUGH A BROKER PAYING HIM 125 BUT NEVER HEARD BACK FRANKLY I GAVE IN TO THEIR PRESSURE AND I FEEL LIKE AN IDIOT FOR DOING IT MR HUNTER SAYS ACCORDING TO SURVEYS BY THE TIMESHARE OWNERS' GROUP 58 OF THE 15 MILLION US OWNERS ARE TRYING TO SELL THEIR WEEKS HOWEVER THE AMERICAN RESORT DEVELOPMENT ASSOCIATION SAYS A 1992 GALLUP ORGANIZATION SURVEY SHOWED THAT ONLY 17 OF TIMESHARE OWNERS ARE TRYING TO SELL ANOTHER SURVEY LAST YEAR FOUND 824 OF OWNERS SATISFIED WITH THEIR PURCHASES RICHARD RAGATZ PRESIDENT OF RAGATZ ASSOCIATES INC A EUGENE ORE FIRM THAT DID THE SECOND STUDY DISPUTES THE OWNERS' GROUP'S FINDING THAT MORE THAN HALF OF TIMESHARE OWNERS WANT TO SELL HE SAYS THE SURVEYS AREN'T STATISTICALLY VALID BUT TIMESHARE CRITICS IN TURN DISPARAGE THE TRADE GROUP'S SURVEYS THE GALLUP SURVEY WAS COMMISSIONED BY THE GROUP AND CONTACTED TIMESHARE OWNERS WHOSE NAMES WERE PROVIDED BY THE INDUSTRY MOREOVER EARLIER STUDIES BY MR RAGATZ A FORMER OREGON TIMESHARE PROMOTER ACKNOWLEDGE THE RESALE PROBLEM IN A 1989 REPORT HIS FIRM OBSERVED THAT ONLY 18 OF TIMESHARE OWNERS HAD BOUGHT A RESALE WHILE 251 OF HIS SURVEY RESPONDENTS WERE VERY INTERESTED IN RESELLING WE IMMEDIATELY SEE THE POTENTIAL FOR A REAL BOTTLENECK DEVELOPING MASSIVE NUMBERS OF TIMESHARE OWNERS WANTING TO SELL BUT WITH FEW TAKERS THE REPORT SAID EVEN THE INDUSTRY'S OWN SURVEYS SHOW THAT TIMESHARES RETAIN A BAD IMAGE BECAUSE OF SALES TACTICS THE INDUSTRY SPONSORED FOCUS GROUPS AT TIMESHARE RESORTS RECENTLY AND TYPICAL COMMENTS FROM SALESPITCH ATTENDEES WERE I WONDERED WHAT KIND OF FLYBYNIGHT OUTFIT WE WERE DEALING WITH AND FALSE PROMISES STEVEN MINER RESEARCH DIRECTOR OF RAGATZ ASSOCIATES WROTE IN A TRADE JOURNAL ALTHOUGH PROFESSIONAL SALESPEOPLE ARE TRAINED TO AVOID THESE SHORTCOMINGS THEY ARE ALL TOO COMMON AT TIMESHARE SALES PRESENTATIONS EVEN AT SOME OF THE MOST SUCCESSFUL RESORTS IN THE COUNTRY HAWAIIAN TIMESHARE OPERATORS ONCE CONCENTRATED ON WAIKIKI BEACH IN HONOLULU BUT NOW THE HAWAIIAN TIMESHARE DEBATE IS CENTERED IN TINY LAHAINA PRONOUNCED LUHHIGHNUH A TOWN OF 6100 ON MAUI'S SUNNY WEST SHORE WITH ITS HEAVY FOOT TRAFFIC LAHAINA IS IDEAL FOR TIMESHARE PROMOTERS WHO WANT LARGE ATTENDANCE AT THEIR PRESENTATIONS BECAUSE ONLY ABOUT ONE IN 10 PROSPECTS ENDS UP BUYING THE DEVELOPERS LATCHED ONTO LAHAINA'S LEISUREACTIVITY BOOTHS TO ATTRACT PROSPECTS BUT SOME LOCAL BUSINESSPEOPLE ARE INCENSED JOHN REILLY A TOUR BOOKER SAYS HE HAD TO MOVE HIS BUSINESS TO HIS HOME FROM HIS SECONDSTORY OFFICE AFTER A TIMESHARE OPERATOR DOWNSTAIRS BEGAN TURNING AWAY MR REILLY'S PROSPECTIVE CUSTOMERS OTHER TOUR BOOKERS HAVE MADE UNEASY ALLIANCES WITH TIMESHARE PARTNERS ESSENTIALLY TURNING THEIR BOOTHS OVER IN EXCHANGE FOR A CUT OF THE ACTION AND A RENT SUBSIDY BOB GROSSMAN VICE PRESIDENT OF FANTASY ISLANDS ACTIVITIES & TOURS INC SAYS HIS FIRM HAD A 250000 LOSS IN 1989 BECAUSE TIMESHARE BOOTHS DRAINED HIS BUSINESS HE SAYS HE ALSO LOST HIS LEASES ON SOME BOOTHS WHEN A TIMESHARE PROMOTER OFFERED 5000 A MONTH ON SPACE HE HAD RENTED FOR 2000 MR GROSSMAN'S FOUR REMAINING BOOTHS ARE NOW FRONTS FOR TIMESHARE OPERATIONS THAT SEND HIM CUSTOMERS WITH TIMESHARE OPERATORS IN CONTROL OF ACTIVITY BOOKINGS MANY ACTIVITY FIRMS EITHER HAVE TO PAY STEEP COMMISSIONS TO TIMESHARE OPERATORS OR LOSE CUSTOMERS VIRGIL KOEHNE GENERAL PARTNER OF MAUIMOLOKAI SEA CRUISES USED TO HAVE A 5050 MIX OF FOREIGN AND US PASSENGERS ON HIS SNORKELING BOATS PAYING INDEPENDENT BOOKERS A 15 COMMISSION FOR THEM NOW HE RELIES ALMOST ENTIRELY ON JAPANESE CUSTOMERS WHOM TIMESHARE PROMOTERS DON'T TARGET BECAUSE HE REFUSED TO PAY THE 30 COMMISSION THE TIMESHARE OPERATORS WANT MANY TOURISTS LEAVE TIMESHARE PITCHES INCENSED TOO MARGARET AND GEOFFREY BUTTNER OF VANCOUVER BRITISH COLUMBIA WROTE TO MAUI COUNTY THAT AFTER 90 MINUTES THEY POINTED OUT TO THE SALESMAN THAT HIS 90 MINUTES WERE UP AND HE BROUGHT OUT ALL HIS OBNOXIOUS BEHAVIOR TRAITS IN THE NEXT 20 MINUTES FROM WHEEDLING TO CONDESCENDING TO OUTRIGHT RUDENESS A HALF HOUR INTO A TIMESHARE PRESENTATION THAT WAS SUPPOSED TO GET HIM A HALFPRICED HELICOPTER RIDE WILLIAM MORROW A GLENDALE CALIF ENGINEER SAYS HE CASUALLY ASKED IF HE COULD BUY A TIMESHARE FOR HIS MOTHER THE SALESMAN SAID HE COULD BUY ONLY FOR HIMSELF AND HIS WIFE THEN ABRUPTLY ENDED THE PITCH AND CANCELED THE RIDE THEY NEED TO GET RID OF THESE PEOPLE MR MORROW FUMES TIMESHARE OPERATORS ADMIT THAT SALESPEOPLE SOMETIMES COME ON TOO STRONG I WOULDN'T BE THE LEAST BIT SURPRISED TO FIND A SALESMAN OR TWO WHO EMBELLISHES BEYOND THE TRUTH SAYS GIOVANNIS FARAONE A SALES MANAGER AT THE KONA COAST RESORT II TIMESHARE BEING MARKETED IN LAHAINA BUT OPERATORS SAY THEIR REPRESENTATIVES ARE TOLD BE COURTEOUS AND TO SELL AN ACTIVITY EVEN IF A CUSTOMER ISN'T ELIGIBLE FOR A TIMESHARE PURCHASE MR FRANKS THE TRADE ASSOCIATION'S PRESIDENT SAYS HIS GROUP MAINTAINS A STRICT CODE OF ETHICS REGARDING SALES PRACTICES CITING HUNDREDS OF CASES OF DISCIPLINARY ACTION BUT HE DOESN'T SUPPLY ANY SPECIFIC DETAILS WITH TENSIONS RUNNING HIGH THE MAUI MAYOR'S OFFICE RECENTLY DEPLOYED AN ASSISTANT TO INVESTIGATE AND THE STATE HAS SENT IN UNDERCOVER SLEUTHS WHO SUBSTANTIATED SOME OF THE COMPLAINTS COUNTY OFFICIALS NOTE WIDESPREAD VIOLATIONS OF TIMESHARE SIGN AND DISCLOSURE LAWS FOR EXAMPLE STATEREQUIRED DISCLOSURE NOTICES ARE OFTEN HIDDEN BEHIND SHRUBS OR DESKS BUT SO FAR ENFORCEMENT HERE HAS BEEN WEAK COUNTY OFFICIALS WHO SAY THEY PLAN A CRACKDOWN SOON BLAME THE STATE STATE OFFICIALS BLAME UNDERSTAFFING THERE'S PLENTY OF BLAME TO GO AROUND SAYS STATE REP ROSALYN BAKER OF LAHAINA WHO BELIEVES THAT A MORATORIUM ON NEW TIMESHARE PERMITS MAY BE NEEDED MEANWHILE THE ONE NAPILI WAY CONDOMINIUMS NEAR LAHAINA LEAVES WARNINGS IN GUESTS' ROOMS BE CAREFUL OF SURF UNDERTOW AND OF BOOTHS OSTENSIBLY OFFERING GOOD DEALS ON ACTIVITIES BEWARE THE NOTES SAY THEY ARE REALLY SELLING TIMESHARE PROPERTIES IGNORE THEM 9303180049 930318 HEARD ON THE STREET STOCKS OF SOME LARGE COMPANIES DISCARDED BY MANY CATCH THE EYE OF VALUE' INVESTORS BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MONEY MANAGERS CALL THEM THE BIG UGLIES THEY ARE CORPORATE BEHEMOTHS THAT HAVE GROWN FAT AND UNAPPEALING AND BEEN DITCHED BY INVESTORS IN FAVOR OF WALL STREET'S NEW BEAUTIES BUT LATELY A FEW OF THESE OUTCAST STOCKS ARE BECOMING MORE ALLURING TO VALUE INVESTORS WHO BUY OUTOFFAVOR STOCKS ON THE BELIEF THAT PRICES DON'T REFLECT THE COMPANY'S LONGTERM VALUE RIGHT NOW SOME SMART INVESTORS SAY THEY SEE BARGAINS IN INTERNATIONAL BUSINESS MACHINES SEARS ROEBUCK AND EASTMAN KODAK THESE STOCKS ARE NOT QUITE BUTTERFLIES YET BUT AT LEAST THEY ARE OUT OF THE COCOON SAYS HERBERT GULLQUIST CHIEF INVESTMENT OFFICER OF LAZARD FRERES'S 15 BILLION ASSET MANAGEMENT DIVISION HE SAYS HE RECENTLY BOOSTED HIS FIRM'S BET ON BOTH SEARS AND KODAK INVESTORS HAVE GROWN DISENCHANTED WITH THE STOCKS OF IBM SEARS AND KODAK IN THE WAKE OF ROUND AFTER ROUND OF BAD NEWS FROM THE COMPANIES EACH IS CURRENTLY IN THE MIDST OF A MASSIVE RESTRUCTURING OF ITS BUSINESSES BUT THINGS MAY NOT BE QUITE AS BAD AS THEY SEEM SAYS ROBERT TORRAY A BALTIMORE MONEY MANAGER WHO OVERSEES 16 BILLION IN INVESTMENTS HE SAYS HE INVESTED 40 MILLION IN IBM LATE IN DECEMBER AFTER WAKING UP AT 2 AM WITH A STARTLING THOUGHT I REALIZED THAT MOST PEOPLE WERE BETTING THAT IBM'S MAINFRAME BUSINESS IS DEAD HE SAID BUT IT'S NOT DEAD THE NEXT DAY HE BEGAN BUYING IBM STOCK THEN AT A PRICE OF ROUGHLY 52 THE STOCK CLOSED YESTERDAY AT 54 1/2 OFF 5/8 MR TORRAY LIKES THE STOCK SO MUCH HE EVEN INVESTED SOME OF HIS 90YEAROLD MOTHER'S MONEY IN IT SHE SLEEPS FINE HE SAYS THE DIVIDEND YIELD IS 39 AND HE ARGUES THAT IBM'S MAINFRAME BUSINESS WHILE SICK STILL HAS LIFE IN IT THERE ARE TOO MANY BILLIONS INVESTED IN MAINFRAME TECHNOLOGY BY THE POSTAL SERVICE THE INTERNAL REVENUE SERVICE BANKS AND CHECK CLEARING OPERATIONS FOR THEM ALL TO SWITCH TO NEW SYSTEMS HE SAYS IN THE MEANTIME HE SAYS HE IS BETTING THAT WITH 64 BILLION IN ANNUAL SALES IBM WILL FIND A WAY TO SURVIVE MY BELIEF IS AN INSTINCTIVE ONE THAT COMPANIES OF THIS SIZE ARE RESILIENT HE SAYS FURTHER HE SAYS THE STOCK IS CHEAP AT ITS CURRENT PRICE ONLY SLIGHTLY MORE THAN THE COMPANY'S CURRENT TANGIBLE NET WORTH OF 50 A SHARE ON THE OTHER HAND MICHAEL PRICE MANAGER OF THE 29 BILLION MUTUAL SHARES FUND SAYS HE IS AVOIDING INVESTING IN IBM PRECISELY BECAUSE OF ITS SIZE IT'S REALLY BIG HE SAYS AND RESTRUCTURING A BIG COMPANY TAKES TOO LONG TWO OF HIS FAVORITE OUTCASTS THESE DAYS ARE SEARS AND KODAK AFTER BEING HAMMERED BY INVESTORS FOR YEARS SEARS IS A BARGAIN AT ITS CURRENT LEVEL OF 50 5/8 OFF 5/8 HE SAYS GIVEN THE VALUE OF VARIOUS COMPANY OPERATIONS SUCH AS THE 77 STAKE IN DEAN WITTER DISCOVER TO BE SPUN OFF TO SHAREHOLDERS LATER THIS YEAR YOU'RE PAYING NOTHING FOR THE RETAILER HE SAYS WE LOVE IT AT YEAR'S END HIS FIRM'S INVESTMENT TOTALED 50 MILLION A POSITION IT HAS BEEN BUILDING OVER TWO YEARS MUCH OF IT DURING THE FALL AFTER SEARS ANNOUNCED RESTRUCTURING PLANS SEARS RECENTLY SOLD TO THE PUBLIC ABOUT 23 OF DEAN WITTER DISCOVER THEY ARE FOCUSED IN A WAY THEY HAVE NOT BEEN FOR YEARS SAYS ROBERT FRIEDMAN AN ANALYST WHO WORKS FOR MR PRICE THE COMPANY IS ZEROING IN ON CONSUMERS WITH AVERAGE INCOMES OF ABOUT 30000 HE SAYS A GENERATION AGO SEARS TRIED TO APPEAL TO A BROAD RANGE OF CONSUMERS BUT NOW IT IS FOCUSING ON SOMEONE WHO LOOKS FOR BARGAINS AND KIDS' CLOTHES HE HOPES THIS STRATEGY CAN RESCUE THE RETAILING OPERATIONS IN THE INTERIM HE SAYS THE STOCK SELLS FOR LESS THAN HIS ESTIMATE OF THE VALUE OF THE COMPANY'S PARTS MANY OF WHICH ARE BEING SOLD OR RESTRUCTURED SEARS SAID LAST NIGHT THAT IT HAS FILED WITH REGULATORS TO OFFER THE PUBLIC ABOUT A 20 STAKE IN ITS ALLSTATE INSURANCE UNIT THIS SPRING SEARS ALSO AIMS TO SELL ITS COLDWELL BANKER UNIT AND SEARS'S LONGTERM CORPORATE DEBT WILL SHRINK BY ABOUT 3 BILLION TO 2 BILLION AS A RESULT OF VARIOUS ASSET SALES MR PRICE THINKS KODAK'S STOCK ALSO IS A GOOD BUY BECAUSE OF THE VALUE OF ITS MAIN BUSINESS PHOTOS AND FILM IT'S A TRUE WORLDWIDE FRANCHISE SAYS GRACE TAFENER ALSO AN ANALYST FOR MR PRICE NOW THE COMPANY IS FOCUSING ON THAT FRANCHISE WHILE MR PRICE'S INVESTMENT FIRM HAD PREVIOUSLY INVESTED IN KODAK IT RAISED ITS HOLDINGS AFTER CHRISTOPHER STEFFEN THE FORMER HONEYWELL TURNAROUND WHIZ CAME TO KODAK AS CHIEF FINANCIAL OFFICER EARLIER THIS YEAR CONSIDERING THE VALUE OF EACH OF KODAK'S BUSINESSES INCLUDING CHEMICALS DRUGS AND INFORMATION SERVICES MS TAFENER SAYS SHE FIGURES THE STOCK SHOULD SELL FOR 60 IN THE SHORT RUN AND 70 EVENTUALLY YESTERDAY KODAK CLOSED AT 54 1/4 OFF 1/4 PHILIP MORRIS ALSO IS A BARGAIN AT ITS CURRENT PRICE MR PRICE BELIEVES YESTERDAY THE STOCK CLOSED AT 64 1/4 OFF 3/8 IN THE PAST TWO MONTHS HE SAID HE HAS DOUBLED HIS FIRM'S STAKE IN PHILIP MORRIS TO 300000 SHARES OR 192 MILLION HE ALSO HAS BEEN A RECENT BUYER OF RJR NABISCO NOW AT 8 1/4 OFF 1/8 OF COURSE THE VALUE INVESTING GAME OFTEN REQUIRES GREAT PATIENCE UNLOVED STOCKS CAN STAY THAT WAY FOR WHAT SEEMS TO A SMALL INVESTOR LIKE ETERNITY YOU HAVE TO HAVE A CERTAIN MINDSET TO DO WHAT I DO MR TORRAY SAYS I DON'T MIND BEING WRONG SOMETIMES 9303180048 930318 SEAGRAM NET FELL 77 IN ITS FOURTH PERIOD LOSS POSTED FOR YEAR NEW YORK SEAGRAM CO SAID FISCAL FOURTHQUARTER NET INCOME FELL 77 AND THE COMPANY POSTED A FULLYEAR LOSS OF 900 MILLION BECAUSE OF A PREVIOUSLY ANNOUNCED ACCOUNTING CHARGE BUT OPERATING PROFIT ROSE 5 TO 252 MILLION EVEN AS SALES SLIPPED 27 TO 2 BILLION FROM 206 BILLION BECAUSE OF THE SALE OF SEVEN SPIRITS BRANDS IN 1991 FOR THE QUARTER ENDED JAN 31 SEAGRAM REPORTED NET OF 46 MILLION OR 12 CENTS A SHARE COMPARED WITH 197 MILLION OR 52 CENTS A SHARE A YEAR EARLIER THE MOST RECENT QUARTER'S NET WAS REDUCED BY A CHARGE OF 100 MILLION OR 27 CENTS A SHARE TO COVER A CHANGE IN ACCOUNTING FOR HEALTHCARE COSTS THE PERSHARE FIGURES REFLECT A 4FOR1 STOCK SPLIT THAT TOOK EFFECT IN JUNE FOR THE YEAR THE COMPANY POSTED A NET LOSS OF 900 MILLION OR 238 A SHARE DUE TO THE 157 BILLION ONETIME CHARGE FOR THE ADOPTION OF A HEALTHCARE ACCOUNTING CHANGE AND A TAX ACCOUNTING CHANGE EXCLUDING THE CHARGE PROFIT INCREASED 96 TO 148 A SHARE COMPARED WITH 135 A SHARE LAST YEAR OPERATING PROFIT WAS UP 21 TO 776 MILLION COMPARED WITH 760 MILLION LAST YEAR SALES FOR THE YEAR ENDED JAN 31 FELL 38 TO 610 BILLION COMPARED WITH 634 BILLION LAST YEAR SEAGRAM'S SPIRITS BUSINESS SHOWED A 14 INCREASE IN PROFIT FROM CONTINUING OPERATIONS IN THE FISCAL YEAR HOWEVER IN THE US EXCLUDING ACCOUNTING CHARGES THE COMPANY'S TROPICANA GROUP POSTED A 14 INCREASE IN OPERATING INCOME FOR THE YEAR TO 133 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SEAGRAM CLOSED AT 27375 A SHARE DOWN 125 CENTS 9303180047 930318 BUSINESS BRIEF ODD'SNEND'S INC RETAILER EXPECTS RECORD NET FOR 4TH QUARTER FULL YEAR ODD'SNEND'S INC SAID IT EXPECTS TO REPORT THAT EARNINGS FOR THE FISCAL FOURTH QUARTER AND FULL YEAR ENDED JAN 31 WERE AT RECORD LEVELS THE BUFFALO NY COMPANY SAID ITS PREVIOUS RECORD RESULTS WERE POSTED IN FISCAL 1992 WHEN IT EARNED 382000 IN THE FOURTH QUARTER ON SALES OF 6 MILLION FOR THE YEAR ENDED JAN 31 1992 IT HAD NET OF 668000 ON SALES OF 163 MILLION THE COMPANY WHICH OPERATES A CHAIN OF RETAIL DISCOUNT AND CLOSEOUT STORES PRIMARILY IN WESTERN AND SOUTHERN NEW YORK SAID SALES IN THE LATEST FOURTH QUARTER ROSE 61 TO 96 MILLION FROM 6 MILLION A YEAR EARLIER SALES FOR THE FULL YEAR ROSE 57 TO 257 MILLION IT SAID 9303180046 930318 FOREIGN DIRECT INVESTMENT IN THE US TURNS NEGATIVE REVERSING LONG TREND BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOREIGNERS WHO POURED BILLIONS OF DOLLARS INTO US FACTORIES REAL ESTATE AND COMPANIES IN THE LATE 1980S BEGAN PULLING OUT SOME OF THAT MONEY LAST YEAR THE LATEST GOVERNMENT ESTIMATES SHOW REFLECTING A WORLDWIDE SLUMP IN FOREIGN DIRECT INVESTMENT FOREIGNERS TOOK OUT 395 BILLION MORE THAN THEY PUT INTO THE US LAST YEAR THE COMMERCE DEPARTMENT SAID IT WAS THE FIRST SUCH REVERSAL IN DECADES FOREIGN DIRECT INVESTMENT WHICH ALSO INCLUDES THE PURCHASE OF STAKES OF 10 OR MORE IN US COMPANIES WENT UP PRETTY SHARPLY AND QUICKLY IN THE SECOND HALF OF THE 1980S AND CAME DOWN JUST AS QUICKLY AFTER 1989 SAID COMMERCE DEPARTMENT ECONOMIST CHRISTOPHER BACH THE DRYING UP OF FOREIGN DIRECT INVESTMENT IN THE US WAS MORE THAN OFFSET BY AN INCREASE IN OTHER FORMS OF PRIVATE FOREIGN INVESTMENT IN THE US INCLUDING PURCHASES OF CORPORATE AND GOVERNMENT SECURITIES AND DEPOSITS IN US BANKS LARGELY BECAUSE OF STRONG DEMAND FROM WESTERN EUROPE AND ASIA FOR INSTANCE FOREIGN PURCHASES OF TREASURY DEBT NOT COUNTING GOVERNMENT TRANSACTIONS MORE THAN DOUBLED TO 351 BILLION LAST YEAR HIGHLY VISIBLE FOREIGN INVESTMENTS IN THE US ESPECIALLY THE JAPANESE PURCHASES OF SUCH US LANDMARKS AS ROCKEFELLER CENTER AND SUCH FAMILIAR COMPANIES AS COLUMBIA PICTURES HAVE BEEN CONTROVERSIAL BUT MANY COMMUNITIES AND SOME POLITICIANS HAVE WELCOMED FOREIGNOWNED FACTORIES AND THE JOBS THEY CREATED THE NET INFLOW OF SUCH FOREIGN INVESTMENT PEAKED AT A RECORD 6787 BILLION IN 1989 AND FELL TO 4514 BILLION IN 1990 AND 115 BILLION IN 1991 BEFORE TURNING NEGATIVE IN 1992 AS FOREIGNERS LIQUIDATED MORE US INVESTMENTS THAN THEY MADE IT'S A WORLDWIDE PHENOMENON SAID EDWARD GRAHAM OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINK TANK AS NEARLY AS WE CAN FIGURE OUT FROM WHAT AMOUNTS TO LOUSY DATA IT COLLAPSED EVERYWHERE STEPHEN LANDEFELD THE ASSOCIATE DIRECTOR FOR INTERNATIONAL ECONOMICS AT THE COMMERCE DEPARTMENT SAID THE WORLD'S MAJOR SUPPLIERS OF DIRECT INVESTMENT CAPITAL INCLUDING THE BRITISH AND THE JAPANESE HAVE ALL PULLED IN THEIR HORNS IN THE LAST COUPLE YEARS BUT OVERSEAS INVESTMENTS BY US COMPANIES INCREASED 30 IN 1992 TO 3531 BILLION SURPASSING THE 3269 BILLION RECORD IN 1990 THE COMMERCE DEPARTMENT SAID THE ORGANIZATION OF INTERNATIONAL INVESTMENT WHICH REPRESENTS FOREIGN COMPANIES WITH INVESTMENTS IN THE US BLAMED THE US AND GLOBAL RECESSION FOR THE SLUMP IN FOREIGN DIRECT INVESTMENT IN THE US THE GROUP'S PRESIDENT RAYMOND R KRAUSE VICE PRESIDENT OF GRAND METROPOLITAN PLC THE BRITISH GROCERY CHAIN ALSO ASSERTED THAT CONTINUED CONGRESSIONAL CALLS FOR UNFAIR AND HARSH MEASURES TARGETING US FOREIGNOWNED CORPORATIONS MAY WELL CONTINUE TO DEPRESS THE WILLINGNESS OF FOREIGN INVESTORS TO MOVE ADDITIONAL CAPITAL INTO THE US MR BACH OF THE COMMERCE DEPARTMENT CAUTIONED THAT THE FOREIGN DIRECTINVESTMENT FIGURES ARE SUBJECT TO SUBSTANTIAL REVISION AS THE DEPARTMENT RECEIVES ADDITIONAL DATA ALTHOUGH THE STEEP DOWNWARD TREND IS CLEAR REVISIONS COULD TURN THE SMALL 1992 OUTFLOW INTO A SMALL NET INFLOW HE SAID 9303180045 930318 BUSINESS BRIEF VONS COS SAMESTORE SALES EXPECTED TO FALL 8 IN FIRST QUARTER VONS COS SAID IT ANTICIPATES AN 8 DECLINE IN SAMESTORE SALES FOR THE FIRST QUARTER OF 1993 THE ARCADIA CALIF SUPERMARKET CHAIN ATTRIBUTED THE EXPECTED DROP TO THE WEAK ECONOMY REMODELING ACTIVITIES AND ADVERSE PUBLICITY ASSOCIATED WITH THE JACK IN THE BOX FOOD POISONING FOODMAKER INC PARENT OF JACK IN THE BOX SUED VONS AND OTHER COMPANIES LAST MONTH FOR ALLEGEDLY SUPPLYING CONTAMINATED MEAT TO THE FASTFOOD CHAIN A VONS SPOKESWOMAN LAST MONTH SAID WE CONTINUE TO BE CONFIDENT THAT VONS PROCESSING DID NOT CONTAMINATE THE MEAT VONS SAID IT DIDN'T EXPECT OPERATING EARNINGS OR CASH FLOW FOR THE FIRST QUARTER TO DECLINE MATERIALLY DESPITE LOWER SALES A SPOKESWOMAN WOULDN'T ELABORATE MOST OF VONS'S 346 STORES HAVE BEEN IN OPERATION FOR A YEAR OR LONGER 9303180044 930318 BUSINESS BRIEF STONE & WEBSTER INC TWO SUBSIDIARIES TO OFFER EARLY RETIREMENT INCENTIVES STONE & WEBSTER INC SAID TWO SUBSIDIARIES WILL OFFER AN EARLY RETIREMENT INCENTIVE TO 700 EMPLOYEES AS ITS STAFFING NEEDS SHIFT IN ENGINEERING AND CONSTRUCTION SERVICES STONE & WEBSTER ENGINEERING CORP AND STONE & WEBSTER MANAGEMENT CONSULTANTS INC WILL OFFER ENHANCED PENSION BENEFITS TO EMPLOYEES WHO ARE AT LEAST 55 YEARS OLD AND WHO HAVE ATTAINED THEIR PENSION RIGHTS AS OF THEIR RETIREMENT DATE THOSE WHO CHOOSE TO RETIRE ON EITHER MAY 1 OR JUNE 1 WILL BE GIVEN A PENSION SUPPLEMENT BASED ON THEIR AVERAGE ANNUAL COMPENSATION FROM 1990 TO 1992 STONE & WEBSTER BASED IN NEW YORK SAID THE ACTUAL COST OF THE EARLY RETIREMENT CAN'T BE DETERMINED UNTIL IT KNOWS HOW MANY EMPLOYEES WILL ACCEPT THE OFFER IN RECENT YEARS STONE & WEBSTER SAID ITS CLIENT BASE HAS BECOME INCREASINGLY DIVERSIFIED THE RETIREMENT PROGRAM IS DESIGNED TO HELP THE COMPANY KEEP ITS STAFF CAPABILITIES CLOSELY ALIGNED WITH THE CHANGING NEEDS OF ITS CLIENTS 9303180043 930318 BUSINESS BRIEF ORKIN EXTERMINATING CO FIRM AGREES TO STOP ADS FOR CERTAIN PESTICIDES ORKIN EXTERMINATING CO AGREED IN A GOVERNMENT ORDER TO STOP ADVERTISING THAT ITS PESTICIDES WERE AS SAFE AS SHAVING CREAM AND SUNTAN LOTION THE SETTLEMENT WHICH WILL GO BEFORE THE FEDERAL TRADE COMMISSION FOR FINAL APPROVAL IN MIDMAY WILL HALT BROCHURES THAT ADVERTISED CERTAIN ORKIN LAWNCARE PRODUCTS TO BE NEITHER HARMFUL TO YOU NOR YOUR SOIL AND PRACTICALLY NONTOXIC OFFICIALS FROM ORKIN IN ATLANTA SAID THE ADS WERE USED ONLY IN ITS LAWNCARE DIVISION AND HAVE ALREADY BEEN DISCONTINUED THE AGREEMENT ALSO REQUIRES ORKIN TO PRODUCE RELIABLE SCIENTIFIC EVIDENCE TO SUBSTANTIATE FUTURE HEALTH AND SAFETY CLAIMS NO FINES OR PENALTIES WERE ASSESSED AND ORKIN IN THE AGREEMENT DOES NOT ADMIT VIOLATING THE LAW THE PUBLIC HAS 60 DAYS TO COMMENT ON THE SETTLEMENT BEFORE THE COMMISSION MAKES IT FINAL 9303180042 930318 BUSINESS BRIEF EL PASO NATURAL GAS CO FIRM TO BUY FROM ENRON REST OF MOJAVE PIPELINE CO EL PASO NATURAL GAS CO EL PASO TEXAS SAID IT AGREED WITH ENRON CORP OF HOUSTON TO BUY ENRON'S 50 STAKE IN MOJAVE PIPELINE CO FOR 40 MILLION AFTER THE PURCHASE EL PASO NATURAL GAS WILL OWN ALL OF THE PIPELINE BUT WILL SEEK ANOTHER PARTNER FOR THE PIPELINE COMPANY MOJAVE OPERATES A 361MILE INTERSTATE PIPELINE FROM TOPOCK ARIZ TO KERN COUNTY CALIF YESTERDAY MOJAVE SUBMITTED CONSTRUCTION AND OPERATION PLANS FOR A PROPOSED NORTHWARD EXPANSION PROJECT TO THE FEDERAL ENERGY REGULATORY COMMISSION FOR APPROVAL THE EXPANSION WILL ORIGINATE NEAR BAKERSFIELD CALIF AND EXTEND TO SACRAMENTO AND THE EAST BAY PALO ALTO AND SOUTH BAY AREAS EL PASO HAS EXISTING CONNECTIONS FROM ITS OTHER PIPELINES TO MOJAVE AT THE CALIFORNIA BORDER EL PASO'S ACQUISITION OF ENRON'S STAKE IN MOJAVE IS SUBJECT TO VARIOUS CONDITIONS AND REGULATORY APPROVALS THE TRANSACTION IS EXPECTED TO CLOSE BY JUNE 1 1993 9303180041 930318 BUSINESS BRIEF COMPUWARE CORP TECHNALYSIS TO BE ACQUIRED FOR ABOUT 1675 A SHARE COMPUWARE CORP FARMINGTON HILLS MICH SAID IT INTENDS TO ACQUIRE 100 OF THE SHARES OF TECHNALYSIS CORP MINNEAPOLIS FOLLOWING APPROVAL OF THE TRANSACTION COMPUWARE SAID IT WILL ISSUE SHARES OF ITS COMMON STOCK TO SHAREHOLDERS OF TECHNALYSIS THE STOCK OF TECHNALYSIS WILL BE VALUED AT ABOUT 1675 A SHARE THERE ARE 2344048 COMMON AND COMMON EQUIVALENT SHARES OF TECHNALYSIS OUTSTANDING SO THE PERSHARE VALUE WOULD GIVE THE TRANSACTION AN INDICATED PRICE OF 393 MILLION THE ACQUISITION WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS COMPUWARE SAID COMPUWARE IS A SUPPLIER OF SYSTEMS SOFTWARE PRODUCTS AND DATA PROCESSING PROFESSIONAL SERVICES TECHNALYSIS IS A PROFESSIONAL DATA PROCESSING ORGANIZATION 9303180040 930318 BUSINESS BRIEF NATIONSBANK CORP CONCERN TO PAY 225 MILLION FOR CHICAGO SECURITIES FIRM NATIONSBANK CORP SAID IT WILL ACQUIRE CHICAGO RESEARCH & TRADING GROUP LTD A LEADING OPTIONS TRADER AND PRIMARY DEALER IN GOVERNMENT SECURITIES FOR 225 MILLION IN CASH THE ACQUISITION WHICH HAD BEEN EXPECTED WILL EXPAND THE REACH OF THE COUNTRY'S FOURTHLARGEST BANK INTO THE SECURITIES MARKET NATIONSBANK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HUGH MCCOLL SAID THE PURCHASE PRICE WON'T HAVE A DILUTIVE EFFECT ON EARNINGS WE EXPECT TO EARN BACK THE PRICE PAID IN TWO YEARS HE SAID THE ACQUISITION IS EXPECTED TO BE COMPLETED IN THREE MONTHS CHICAGO RESEARCH WAS FOUNDED IN 1977 WITH LESS THAN 200000 IN CAPITAL IT NOW EMPLOYS 750 AND HAS 250 MILLION IN CAPITAL THE CHICAGO FIRM HAS OFFICES IN NEW YORK SAN FRANCISCO PHILADELPHIA RIDGEFIELD CONN LONDON TOKYO SINGAPORE FRANKFURT AND OSAKA JAPAN THE MOVE BY NATIONSBANK BASED IN CHARLOTTE NC IS PART OF THE COMPANY'S STRATEGY OF EXPANDING AWAY FROM THE INDUSTRY'S TRADITIONAL RELIANCE ON CORPORATE LENDING AND REAL ESTATE LOANS 9303180039 930318 BUSINESS BRIEF NORTHERN TELECOM LTD DISTRIBUTION ACCORDS SIGNED FOR WIRELESS PHONE SYSTEM NORTHERN TELECOM LTD TORONTO SAID IT SIGNED DISTRIBUTION AGREEMENTS IN EUROPE FOR ITS COMPANION WIRELESS TELEPHONE SYSTEM THE SYSTEM INTRODUCED IN HONG KONG IN NOVEMBER WILL BE DISTRIBUTED IN EUROPE BY PTT TELECOM IN HOLLAND AND BY TELEVERKET THE NATIONAL TELECOMMUNICATIONS OPERATOR IN SWEDEN THE SYSTEM WILL BE MARKETED IN HOLLAND AS VOX CORDLESS COMPANION AND IN SWEDEN AS PART OF THE COSMOS 2000 FAMILY AND WILL BE AVAILABLE IN BOTH COUNTRIES THE FIRST HALF OF THIS YEAR THE COMPANY SAID THE INTRODUCTION OF THE SYSTEM IN EUROPE IS PART OF A WORLDWIDE PRODUCT ROLLOUT THAT WILL INCLUDE OTHER MARKETS IN EUROPE IN 1993 AS WELL AS LOCATIONS IN THE PACIFIC RIM THE US CANADA THE CARIBBEAN AND LATIN AMERICA 9303180038 930318 BUSINESS BRIEF BORDEN INC COMPANY EXPECTS TO POST LOWER FIRSTQUARTER PROFIT BORDEN INC SAID IT EXPECTS FIRSTQUARTER EARNINGS TO FALL BELOW ANALYSTS' EXPECTATIONS OF ABOUT 423 MILLION OR 30 CENTS A SHARE IN THE 1992 FIRST QUARTER THE NEW YORK COMPANY REPORTED NET INCOME OF 611 MILLION OR 41 CENTS A SHARE ON REVENUE OF 17 BILLION BORDEN HAS FOUR UNITS GROCERY DAIRY SNACKS AND INTERNATIONAL CONSUMER PRODUCTS AND PACKAGING AND INDUSTRIAL PRODUCTS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANTHONY S D'AMATO TOLD SECURITIES ANALYSTS AT A FOOD INDUSTRY CONFERENCE THAT THE COMPANY SEES FULLYEAR EARNINGS EXCLUDING RESTRUCTURING AND ACCOUNTING CHARGES INCREASING ABOUT 20 FROM 1992 TO ABOUT 282 MILLION OR 2 A SHARE LAST YEAR THE COMPANY REPORTED A LOSS OF 4396 MILLION OR 307 A SHARE AFTER RESTRUCTURING CHARGES AND ACCOUNTING CHANGES THE COMBINED EFFECT OF ORGANIZATIONAL CHANGE NEW MARKETING INVESTMENT AND SALES AND DIVESTITURES OF NONPERFORMING BUSINESSES AND PRODUCT LINES WILL NOT BEGIN TO BE FELT UNTIL THE SECOND HALF OF 1993 MR D'AMATO SAID MR D'AMATO ADDED THAT BORDEN HAS LAUNCHED AN EXTERNAL SEARCH FOR A NEW EXECUTIVE WHO WILL HEAD BORDEN'S REDESIGNED NORTH AMERICAN FOOD DIVISION 9303180037 930318 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 5 HIGH 3 LOW 4 1/2 NEAR CLOSING BID 5 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 312 30 TO 59 DAYS 310 60 TO 119 DAYS 312 120 TO 149 DAYS 315 150 TO 179 DAYS 318 180 TO 239 DAYS 320 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 317 30 DAYS 318 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 267 TWO MONTHS 269 THREE MONTHS 283 SIX MONTHS 301 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 312 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 304 60 DAYS 304 90 DAYS 307 120 DAYS 310 150 DAYS 311 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 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 736 60 DAYS 745 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 732 60 DAYS 742 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 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 9303180036 930318 TWO INDICTED IN THE BOMBING OF TRADE CENTER MIDDLE EASTERN IMMIGRANTS ACCUSED OF KILLING SIX THIRD IS CHARGED BY JONATHAN M MOSES AND DAVE KANSAS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TWO YOUNG PALESTINIAN IMMIGRANTS WERE INDICTED ON CHARGES OF BOMBING THE WORLD TRADE CENTER AND KILLING SIX PEOPLE LAST MONTH WITH A THIRD PERSON INDICTED ON LESSER CHARGES MEANWHILE A JUDGE RULED THAT A RADICAL EGYPTIAN SHEIK WHO ALLEGEDLY INSPIRED THE ACCUSED BOMBERS BY HIS FIERY BRAND OF ANTIWESTERN RHETORIC COULD BE EXCLUDED FROM THE US SEPARATELY TRADE CENTER OFFICIALS SAID THE TWIN TOWERS WILL BEGIN REOPENING TODAY WITH NEW YORK GOV MARIO M CUOMO RETURNING TO HIS OFFICE THERE AND IN ANOTHER DEVELOPMENT JAMES FOX CHIEF OF THE NEW YORK OFFICE OF THE FEDERAL BUREAU OF INVESTIGATION SAID THAT THE AGENCY HADN'T ANY CONCRETE EVIDENCE THAT THREE ADDITIONAL SUSPECTS HAVE LEFT THE COUNTRY AS REPORTED IN THIS NEWSPAPER FBI SOURCES HAVE SAID IT'S BELIEVED THE THREE HAVE FLED THE US REGARDING THE CLERIC 54YEAROLD SHEIK OMAR ABDELRAHMAN US IMMIGRATION JUDGE DANIEL MEISNER SAID THE BLIND IMAM MAY BE EXCLUDED FROM THE US ON THE GROUNDS OF POLYGAMY AND THAT HE WAS CONVICTED OF FALSIFYING A CHECK IN EGYPT IN 1987 JUDGE MEISNER WHO ISSUED HIS DECISION TUESDAY IN NEWARK NJ AFTER A HEARING LAST MONTH ALSO TURNED DOWN THE SHEIK'S REQUEST THAT HE BE GRANTED ASYLUM IN THE US BECAUSE HE WOULD BE PERSECUTED ON HIS RETURN TO EGYPT SAID BARBARA NELSON THE SHEIK'S ATTORNEY SHEIK OMAR WHO WAS CHARGED AND ACQUITTED OF PARTICIPATING IN THE OCTOBER 1981 ASSASSINATION OF EGYPTIAN PRESIDENT ANWAR ELSADAT MAY FACE PROSECUTION AGAIN ON HIS RETURN TO HIS NATIVE COUNTRY IT ISN'T CLEAR WHETHER THE SHEIK WOULD BE FREE TO LEAVE THE US LAWENFORCEMENT OFFICIALS SAID THE SHEIK WHO HASN'T BEEN CHARGED IN CONNECTION WITH THE FEB 26 WORLD TRADE CENTER BOMBING CURRENTLY IS FREE TO LEAVE THE US BUT OFFICIALS LEFT OPEN THE POSSIBILITY THAT THEY WOULD SEEK A COURT ORDER TO STOP HIM WE DON'T WANT HIM TO KNOW WHAT WE'RE GOING TO DO THE FBI'S MR FOX SAID MS NELSON SAID HER CLIENT WILL APPEAL THE IMMIGRATION JUDGE'S RULING IN THE MEANTIME THE SHEIK IS FREE TO TRAVEL THROUGHOUT THE US MS NELSON SAID SHE DIDN'T KNOW WHERE HER CLIENT WAS BUT THAT HE PLANNED TO RETURN TO THE NEW YORK AREA SOON THE INDICTMENTS AGAINST MOHAMMED A SALAMEH AND NIDAL AYYAD BOTH 25 WERE SPARSE AND CONTAINED LITTLE INFORMATION THAT WASN'T MADE PUBLIC WHEN THEY WERE ARRESTED ONE CHANGE IS THAT THE TWO ARE CHARGED NOT ONLY WITH AIDING AND ABETTING THE BOMBING AS WAS THE COMPLAINT WHEN THEY WERE FIRST ARRESTED BUT ALSO WITH PARTICIPATING IN IT PROSECUTORS DECLINED TO SAY WHAT NEW EVIDENCE LED TO THE BROADENING OF THE CHARGES MR SALAMEH IS A JORDANIAN MR AYYAD WHO IS MARRIED IS A NATURALIZED US CITIZEN FROM KUWAIT THE FAMILIES OF BOTH MEN TRACE THEIR ANCESTRY TO THE FORMER STATE OF PALESTINE ROGER HAYES US ATTORNEY IN NEW YORK SAID THAT THE GOVERNMENT WOULDN'T SEEK THE DEATH PENALTY AGAINST THE TWO MEN BECAUSE OF CONSTITUTIONAL CONCERNS AND INSTEAD THEY FACE A MAXIMUM PENALTY OF LIFE WITHOUT PAROLE ROBERT PRECHT THE ATTORNEY FOR MR SALAMEH SAID HE WASN'T SURPRISED THAT HIS CLIENT WAS INDICTED BUT SAID THAT HIS CLIENT ULTIMATELY WILL BE CLEARED OF THE CHARGES AN ATTORNEY FOR MR AYYAD COULDN'T BE REACHED FOR COMMENT THE TWO ARE BEING HELD WITHOUT BAIL AND WILL BE ARRAIGNED NEXT WEEK A FEDERAL GRAND JURY ALSO INDICTED IBRAHIM A ELGABROWNY 42 ON FOUR COUNTS OF OBSTRUCTION OF JUSTICE RESISTING ARREST AND ASSAULTING A LAWENFORCEMENT OFFICER IN CONNECTION WITH THE INVESTIGATION INTO THE BOMBING AS WELL AS ONE COUNT OF HOLDING FALSE IDENTIFICATION PAPERS THE CHARGES COULD LEAD TO A MAXIMUM PENALTY OF 17 YEARS IN JAIL THE INDICTMENT DOESN'T LINK MR ELGABROWNY WHO WAS A LEADER OF THE BROOKLYN MOSQUE WHERE SHEIK OMAR PREACHED WITH THE BOMBING BUT FEDERAL PROSECUTORS SAID THEY WOULD SEEK TO CONTINUE TO DETAIN MR ELGABROWNY WITHOUT BAIL SAYING THE INVESTIGATION INTO THE BOMBING IS CONTINUING AND THAT THERE WAS A RISK OF FLIGHT MR ELGABROWNY'S LAWYER WILLIAM KUNSTLER SAID HE WILL SEEK TO OBTAIN HIS CLIENT'S RELEASE ON THE GROUNDS THAT THE GOVERNMENT HAS FAILED UTTERLY IN ITS ATTEMPTS TO LINK MR ELGABROWNY TO THE WORLD TRADE CENTER TRAGEDY LAWENFORCEMENT OFFICIALS SAID THEY ARE SEEKING OTHER PEOPLE WHO PARTICIPATED IN THE BOMBING AND THAT THEY EXPECT TO CATCH THEM LET THOSE WHO WERE ASSOCIATED WITH THIS SHAMELESS ENTERPRISE BUT WHO ARE YET UNAPPREHENDED KNOW THEIR TIME WILL COME SAID MR HAYES THAT SEARCH INVOLVES TWO FRONTS SEEKING PEOPLE AND MONEY JAMES ESPOSITO HEAD OF THE FBI OFFICE IN NEWARK IS PURSUING THE MONEY TRAIL HE SAID HIS OFFICE HAS TRACED THE FUNDS THAT ALLEGEDLY FINANCED THE BOMBING AS FAR AS GERMANY AT THE WORLD TRADE CENTER AN INTENSE RESTORATION EFFORT WAS REWARDED TODAY WITH THE REOPENING OF GOV CUOMO'S OFFICE OFFICIALS SAID OTHER TENANTS INCLUDING DEAN WITTER DISCOVER & CO AND FUJI BANK WILL BEGIN RETURNING TOMORROW CHARLES MAIKISH DIRECTOR OF THE WORLD TRADE CENTER SAID LIFESAFETY SYSTEMS HAVE BEEN FULLY RESTORED AND ONLY CLEANING REMAINS TO BE COMPLETED TO OPEN THE REST OF THE TOWERS THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY MANAGERS OF THE COMPLEX SAID BATTERYPACK LIGHTING HAS BEEN ADDED TO STAIRWELLS AND ELEVATORS OTHER NEW SAFETY FEATURES INCLUDE A SECOND BACKUP GENERATOR ON THE PLAZA LEVEL AND ADDITIONAL COMMUNICATION DEVICES 9303180035 930318 BUSINESS BRIEF GENTEX CORP DONNELLY INFRINGES ON PATENT FOR AUTO MIRROR JUDGE SAYS DONNELLY CORP SAID IT STOPPED SHIPPING AN OLDER ELECTROCHROMIC MIRROR AS A RESULT OF A DISTRICT COURT JUDGE'S RULING THAT THE COMPANY IS INFRINGING ON GENTEX CORP'S PATENT BOTH DONNELLY BASED IN HOLLAND MICH AND GENTEX IN ZEELAND MICH MAKE EXTERIOR AND INTERIOR SIDE AND REARVIEW MIRRORS FOR AUTOS DONNELLY SAID THE RULING WILL HAVE AN INSIGNIFICANT EFFECT ON ITS FINANCIAL PERFORMANCE AS THE TECHNOLOGY IN DISPUTE REPRESENTS LESS THAN ONEHALF OF 1 OF DONNELLY'S TOTAL SALES OF 271 MILLION DONNELLY SAID THE RULING DOESN'T APPLY TO ITS NEW SUPERCHROMIC MIRROR PRODUCTS WHICH ARE MADE WITH DIFFERENT TECHNOLOGICAL PARTS IN LATE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE DONNELLY WAS QUOTED AT 18375 DOWN 625 CENTS GENTEX WAS QUOTED AT 2675 UP 1375 IN NASDAQ MARKET SYSTEM TRADING THE TWO COMPANIES HAVE BEEN INVOLVED IN A PATENT FIGHT OVER THE MIRRORS WHICH AUTOMATICALLY DIM THE GLARE OF REFLECTED LIGHT FOR NEARLY THREE YEARS 9303180034 930318 BUSINESS BRIEF LEUCADIA NATIONAL CORP COMPANY AGREES TO SELL LINE TO UNIT OF JOHN HANCOCK LEUCADIA NATIONAL CORP NEW YORK AGREED IN PRINCIPLE TO SELL A LIFE INSURANCE BUSINESS TO A UNIT OF JOHN HANCOCK MUTUAL LIFE INSURANCE CO TERMS WEREN'T DISCLOSED LEUCADIA AN INSURANCE AND FINANCIAL SERVICES COMPANY PLANS TO SELL THE SINGLE PREMIUM WHOLE LIFE INSURANCE BUSINESS OF ITS UNIT CHARTER NATIONAL LIFE INSURANCE CO THE TRANSACTION IS SUBJECT TO VARIOUS CORPORATE AND REGULATORY APPROVALS AND THE PRICE IS SUBJECT TO ADJUSTMENT BASED ON INTEREST RATES AT THE CLOSING AND ADDITIONAL FUTURE CONTINGENT CONSIDERATION BASED ON THE PERFORMANCE OF CHARTER NATIONAL JOHN HANCOCK IS BASED IN BOSTON LEUCADIA SAID THAT IF THE TRANSACTION WERE COMPLETED NOW IT WOULD REALIZE A PRETAX GAIN OF 185 MILLION EXCLUSIVE OF THE CONTINGENT CONSIDERATION CHARTER NATIONAL HAS ABOUT 650 MILLION IN RESERVES 9303180033 930317 BUSINESS BRIEF WOOLWORTH CORP FIRM TO SPEND 390 MILLION TO EXPAND SPECIALTY STORES WOOLWORTH CORP NEW YORK SAID IT PLANS TO SPEND 390 MILLION IN ITS CURRENT FISCAL YEAR MAINLY TO EXPAND ITS SPECIALTY STORE OPERATIONS THE CAPITAL SPENDING FOR THE YEAR ENDING JAN 29 1994 WOULD BE FUNDED BY INTERNAL SOURCES THE RETAIL STORE OPERATOR SAID IT PLANS TO OPEN ABOUT 800 STORES DURING 1993 AND NEARLY 90 OF THOSE WILL BE SPECIALTY UNITS AFTER TAKING STORE CLOSINGS INTO ACCOUNT THE COMPANY EXPECTS TO BE OPERATING ABOUT 9600 STORES AT THE END OF 1993 A NET INCREASE OF ABOUT 7 IN FISCAL 1993 WOOLWORTH HAD CAPITAL SPENDING OF 327 MILLION THE EXPANSION WILL MAINLY FOCUS ON THE COMPANY'S FOOT LOCKER CHAIN OF ATHLETIC FOOTWEAR AND APPAREL STORES WOOLWORTH ALSO SAID ITS WORLD FOOT LOCKER FORMAT IS EXPECTED TO GROW FROM THE TWO OPENED THIS PAST YEAR IN NEW JERSEY AND DALLAS TO A TOTAL OF AT LEAST 25 STORES BEFORE THE END OF THE YEAR IN THE FUTURE THE COMPANY SAID IT PLANS TO OPEN AS MANY AS 50 TO 75 WORLD FOOT LOCKER STORES EACH YEAR AND SEES A POTENTIAL FOR A TOTAL OF AS MANY AS 300 TO 600 OF THE STORES 9303180032 930318 NEW YORK FED SYSTEM AFTER SALOMON SCANDAL FINDS NO WRONGDOING WASHINGTON THE FEDERAL RESERVE BANK OF NEW YORK SAID ITS MARKETSURVEILLANCE SYSTEM HAS TURNED UP NO INDICATIONS OF WRONGDOING IN THE GOVERNMENT SECURITIES MARKET IN THE AFTERMATH OF THE SALOMON BROTHERS INC BOND SCANDAL MR MCDONOUGH'S TESTIMONY BEFORE THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE MARKED THE FIRST TIME THAT THE NEW YORK FED HAS STATED CATEGORICALLY THAT IT HAS FOUND NO SUSPECTED MARKET MANIPULATION SIMILAR TO THAT PERFORMED BY SALOMON'S BOND TRADERS THE SUBCOMMITTEE LED BY REP EDWARD MARKEY D MASS IS CONSIDERING WIDERANGING LEGISLATION TO STIFFEN REGULATION OF THE GOVERNMENTSECURITIES MARKET THE PROPOSED LEGISLATION WOULD INCLUDE A MEASURE GIVING THE SECURITIES AND EXCHANGE COMMISSION AUTHORITY TO REQUIRE BROKERS AND DEALERS TO MAINTAIN RECORDS OF GOVERNMENTSECURITIES TRANSACTIONS IN ELECTRONIC FORM CURRENT RECORDKEEPING PRACTICES MAKE IT DIFFICULT FOR THE SEC AND OTHER INVESTIGATING AGENCIES TO EXAMINE TRANSACTIONS SEC CHAIRMAN RICHARD BREEDEN SAID UNLESS WE GET A WITNESS WHO WANTS TO SING THESE RECORDS ARE THE ONLY EVIDENCE WE HAVE OF TRANSACTIONS BELIEVE ME HE ADDED PEOPLE IN THE MARKETPLACE UNDERSTAND THAT VERY IMPORTANT DISTINCTION WE WOULD LIKE THE AUTHORITY TO SAY YOU CAN'T KEEP RECORDS ON A SCROLL MR BREEDEN SAID TO UNDERSCORE THE POINT MR BREEDEN BRANDISHED A THICK PAPER ROLL MARKED WITH TYPEWRITING SCRATCHOUTS AND HANDWRITTEN SCRAWLS REPRESENTING THE RECORD OF THREE HOURS OF TRADES AT ONE FIRM MR BREEDEN WOULDN'T IDENTIFY THE FIRM THAT PRODUCED THE RECORD BUT OTHERS FAMILIAR WITH THE RECORD SAID IT CAME FROM CANTOR FITZGERALD & CO A UNIT OF CANTOR FITZGERALD SECURITIES CORP BASED IN NEW YORK A LAWYER FOR THE FIRM DIDN'T RESPOND TO A CALL FOR COMMENT 9303180031 930318 MARKETSCAN TEMPTED BY TASTE AND TIRING OF TOFU SHOPPERS ARE BRINGING HOME THE BACON BY KATHLEEN DEVENY BACON MAKERS ARE IN FAT CITY MORE OF THEIR PRODUCT WAS BOUGHT BY CONSUMERS LAST YEAR THAN EVER BEFORE ACCORDING TO MARKET LEADER OSCAR MAYER FOODS CORP THANKS TO BARGAIN PRICES AND WANING INTEREST IN MAINTAINING A LOWFAT REGIMEN AMERICANS IN GROWING NUMBERS ARE WOLFING DOWN BREAKFASTS OF BACON NOT TO MENTION SAUSAGE EGGS OVER EASY AND HOME FRIES MARKET RESEARCHERS SAY THIS GROWING APPETITE FOR TRADITIONAL BREAKFAST FOODS REPRESENTS A SIGNIFICANT SHIFT IN BEHAVIOR MANY AMERICANS DID INDEED TURN AWAY FROM SUCH HIGHFAT OR HIGHCHOLESTEROL FOODS AS EGGS BEEF AND BACON DURING THE 1980S BUT IN THE PAST FEW YEARS CONSUMERS' WILLPOWER HAS BEEN WEAKENING THE VOLUME OF BACON SOLD IN SUPERMARKETS JUMPED 4 DURING THE 52 WEEKS ENDED JAN 31 WHILE POUND SALES OF BREAKFAST SAUSAGE AND HAM GREW 25 ACCORDING TO DATA GATHERED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE WHAT'S MORE UNIT SALES OF FRESH EGGS WHICH HAD BEEN DECLINING FOR YEARS EDGED UP SLIGHTLY THAT DOESN'T SURPRISE JOHN MALKNECHT A 33YEAROLD STOCKBROKER IN MINNEAPOLIS WHO HAPPILY ADMITS TO EATING TONS OF BACON MR MALKNECHT SAYS HE EATS BACON AT LEAST THREE TIMES A WEEK USUALLY ALONGSIDE A FEW EGGS AND TOAST SMEARED WITH REAL BUTTER HIS BLOODCHOLESTEROL LEVEL IS LOW HE SAYS SO HE SEES NO REASON TO AVOID FOODS HE LIKES IF YOU DON'T HAVE A PROBLEM WHY WORRY ABOUT IT BACON SALES TO RESTAURANTS WERE EVEN HOTTER THAN SUPERMARKET SALES LAST YEAR ACCORDING TO BRUCE GINN CHIEF ECONOMIST AT OSCAR MAYER PART OF THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS THAT IS DUE PARTLY TO THE GROWING POPULARITY AMONG RESTAURANT OPERATORS OF PRECOOKED BACON PRODUCTS AS WELL AS THE ADDITION OF SANDWICHES THAT INCLUDE BACON ON MENUS IN MANY FASTFOOD RESTAURANTS BACON HAS ENJOYED STRONG GROWTH IN FOOD SERVICE SAYS MR GINN THERE'S SOMETHING TO THOSE BACON CHEESEBURGERS STILL NEARLY 70 OF BACON IS CONSUMED AT BREAKFAST BREAKFAST FARE IS BIG AT THE 850 RESTAURANTS OF SHONEY'S INC WHICH TEMPT CUSTOMERS WITH BUFFETS OF BACON SAUSAGE GRITS AND GRAVY THE CHAIN'S BREAKFAST SALES CONTINUE TO GROW AND COMPETITION FROM OTHER RESTAURANTS IS FIERCER THAN EVER ACCORDING TO JEFF SOWELL VICE PRESIDENT OF MARKETING AT SHONEY'S WHICH IS BASED IN NASHVILLE TENN PEOPLE TALK A HEALTHY GAME MR SOWELL SAYS BUT THEY'RE NOT STAYING AWAY FROM TRADITIONAL BREAKFASTS EVEN EGGS LONG ASSOCIATED WITH CHOLESTEROL APPEAR TO BE MAKING A COMEBACK ALTHOUGH MANY EGGS ARE USED AS INGREDIENTS IN OTHER DISHES THEY REMAIN THE NATION'S THIRD MOST POPULAR BREAKFAST FOOD AFTER CEREAL AND BREADS CONSUMPTION DECLINED STEADILY FROM AN AVERAGE OF 53 EGGS IN A TWOWEEK PERIOD IN THE EARLY 1980S TO 33 EGGS IN 1989 ACCORDING TO HARRY BALZER VICE PRESIDENT OF NPD GROUP A CHICAGO FIRM THAT TRACKS AMERICANS' EATING HABITS SINCE THEN HOWEVER NPD REPORTS EGG CONSUMPTION BOTTOMED OUT AND HAS CREPT UP SLIGHTLY MEANWHILE CONSUMPTION OF CEREAL WHICH GREW QUICKLY DURING MOST OF THE PAST DECADE PEAKED IN 1989 AND IS NOW AT A FOURYEAR LOW CONSUMPTION OF SOME LESSHEALTHY PRODUCTS HAS FLATTENED OUT AFTER DECLINING FOR MORE THAN A DECADE MR BALZER SAYS IT'S TOO SOON TO SAY WHAT'S GOING TO HAPPEN LONGTERM BUT WE ARE DEFINITELY IN A PERIOD OF CHANGE THE CURRENT BARGAIN PRICES FOR BREAKFAST MEATS ARE REFLECTED IN THE FACT THAT WHILE SALES IN POUNDS OF BACON AND BREAKFAST SAUSAGE INCREASED DURING THE RECENT 52WEEK PERIOD DOLLAR SALES DROPPED BY 114 AND 65 RESPECTIVELY THAT IS DUE MAINLY TO RECORD RATES OF HOG PRODUCTION IN 1992 WHICH DROVE DOWN BACON MAKERS' RAWMATERIAL COSTS THE DROP WAS PRECIPITOUS ACCORDING TO MR GINN OF OSCAR MAYER OVER THE PAST 10 YEARS PORK BELLIES AVERAGED 50 FOR 100 POUNDS LAST YEAR THOUGH 100 POUNDS OF PORK BELLIES FETCHED A MERE 31 MR GINN SAYS MARKETERS QUICKLY MOVED TO TEMPT TOFUWEARY CONSUMERS WITH LOWER PRICES INFORMATION RESOURCES REPORTS THAT THE AVERAGE RETAIL PRICE OF BACON PER POUND DECLINED 15 TO 173 DURING THE RECENT 52WEEK PERIOD TO BOOST SALES IN THE MIDWEST AND WEST OSCAR MAYER STEPPED UP PROMOTIONS TO BOTH CONSUMERS AND RETAILERS SIMILARLY CONAGRA INC BEGAN INCLUDING 2 COUPONS ON PACKAGES OF ITS ARMOUR BACON FOR OTHER PRODUCTS INCLUDING HAM AND HOT DOGS THERE ALSO ARE GROWING INDICATIONS THAT CONSUMERS ARE GETTING FED UP WITH HEALTHFUL EATING HABITS DURING 1992 AMERICANS GAINED WEIGHT AND ATE LESS CAREFULLY THAN IN 1991 ACCORDING TO A RECENT TELEPHONE SURVEY OF 1251 ADULTS CONDUCTED BY LOUIS HARRIS & ASSOCIATES SOME 44 OF RESPONDENTS SAID THEY TRY HARD TO AVOID CHOLESTEROL WHILE 51 TRY HARD TO AVOID FAT BOTH FIGURES DECLINED SIX PERCENTAGE POINTS FROM 1991 ONLY 33 OF AMERICANS SAID THEY EXERCISE REGULARLY DOWN FROM 37 IN 1991 THE BACKSLIDING ACTUALLY STARTED ABOUT TWO YEARS AGO ACCORDING TO MR BALZER OF NPD GROUP HE ATTRIBUTES IT PARTLY TO THE PROLIFERATION OF FOODS PITCHED TO CONSUMERS AS LOWFAT OR REDUCEDCHOLESTEROL WHICH ALLOW THOSE WHO USUALLY EAT SUCH FARE TO FEEL LESS GUILTY ABOUT SQUEEZING AN EXTRA EGG AND SIDE ORDER OF BACON INTO THEIR DIETS PEOPLE ALSO SEEM TO BE MORE ACCEPTING OF THEIR OWN EXPANDING WAISTLINES IN 1985 55 OF PEOPLE QUERIED BY NPD SAID THEY THINK OVERWEIGHT PEOPLE ARE UNATTRACTIVE TODAY ONLY ABOUT 35 EXPRESSED SUCH A HARSH JUDGMENT SOME CONSUMERBEHAVIOR EXPERTS SAY THE MOVE TO JUMP ON THE BACONANDEGGS BANDWAGON MAY ALSO REFLECT CONFUSION ON THE PART OF CONSUMERS ABOUT EXACTLY WHAT CONSTITUTES HEALTHFUL EATING AMERICANS HAVE BEEN BOMBARDED IN RECENT YEARS WITH HUNDREDS OF REPORTS THAT TOUT OR DEBUNK THE VIRTUES OF EVERYTHING FROM OAT BRAN TO GARLIC EVEN THE AMERICAN HEART ASSOCIATION INCREASED ITS SUGGESTED CONSUMPTION OF WHOLE EGGS TO FOUR A WEEK FROM THREE AFTER NEW MEASUREMENTS SHOWED THE CHOLESTEROL CONTAINED IN EACH YOLK WAS LOWER THAN BELIEVED THE HEALTH MESSAGE STILL SWAYS SOME THOUGH NOT AT EVERY MEAL GROWING UP I HAD BACON ALL THE TIME BUT I TRY TO EAT MORE HEALTHFULLY THESE DAYS SAYS RJ GALLO 23 WHO IS EMPLOYED IN FINANCIAL SERVICES AT A MANHATTAN UNIVERSITY NONETHELESS MR GALLO SAYS HE OFTEN ORDERS A BACON OMELET AT A COFFEE SHOP ON SUNDAY MORNINGS IT'S ALSO REALLY GOOD WITH FRENCH TOAST AMERICANS MAY SAY THEY ARE INTERESTED IN MORE HEALTHFUL FARE BUT LAST YEAR WAS A BANNER YEAR FOR BACON SALES DECLINING PRICES MADE BACON EGGS AND BREAKFAST SAUSAGE A BARGAIN CAUSING DOLLAR SALES TO DROP EVEN AS UNIT VOLUME EDGED UP 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 9303180030 930318 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG SOMETIMES IT SEEMS LIKE PRESIDENT CLINTON IS EVERYWHERE YOU CAN'T TURN ON THE TV OR RADIO OR OPEN THE NEWSPAPER WITHOUT ENCOUNTERING HIM ANNOUNCING ANOTHER NEW POLICY OR HOLDING A TOWN MEETING NOW THE CLINTON WHITE HOUSE IS EVEN IN TOUCH BY COMPUTER THE ADMINISTRATION HAS SET UP SPECIAL DATABASES AND BULLETIN BOARDS ON A NUMBER OF POPULAR ONLINE SERVICES AVAILABLE TO ANY COMPUTER USER FOR THE FIRST TIME THERE ARE OFFICIAL WHITE HOUSE ELECTRONICMAIL ADDRESSES ON PUBLIC SERVICES ANYONE CAN USE THE MAIN REASON FOR ALL THIS OF COURSE IS A POLITICAL ONE THE WHITE HOUSE CAN PROPAGATE PRESIDENTIAL SPEECHES STATEMENTS AND INTERVIEWS ONTO MILLIONS OF DISK DRIVES AND COMPUTER PRINTERS BY TEMPTING THEIR OWNERS TO DOWNLOAD THE MATERIAL THERE'S ALSO AN ADVANTAGE FOR COMPUTER OWNERS THEY CAN TALK BACK TO THE WHITE HOUSE THROUGH EMAIL SO HERE'S A GUIDE TO ESTABLISHING ELECTRONIC LINKS TO THE CLINTON WHITE HOUSE USING ANY IBMCOMPATIBLE APPLE MACINTOSH OR OTHER POPULAR PC EQUIPPED WITH A MODEM PHONE LINE AND COMMUNICATIONS SOFTWARE IF YOU BELONG TO THE COMPUSERVE INFORMATION SERVICE YOU CAN SEND THE WHITE HOUSE AN EMAIL MESSAGE AT THE ADDRESS 753003115 YOU CAN ALSO TAP INTO A LARGE LIBRARY OF OFFICIAL WHITE HOUSE DOCUMENTS UPDATED DAILY BY USING THE COMMAND GO WHITEHOUSE THESE DOCUMENTS WHICH CAN BE DOWNLOADED INTO YOUR OWN COMPUTER RANGE FROM WEIGHTY SPEECHES AND DAILY PRESS BRIEFINGS TO THE OFFICIAL PROCLAMATION OF IRISHAMERICAN HERITAGE MONTH THE SAME GO WHITEHOUSE COMMAND ALSO LETS YOU PARTICIPATE IN BULLETINBOARD DISCUSSIONS ONLINE ELECTRONIC DEBATES ABOUT CLINTON ADMINISTRATION POLICIES THESE RANGE FAR AND WIDE ONE LAST WEEK ON COMPUSERVE WAS ABOUT HOW TO STOP THE CENTRAL INTELLIGENCE AGENCY FROM MONITORING THE DISCUSSIONS THERE IF YOU BELONG TO THE COMPETING AMERICA ONLINE SERVICE YOU CAN SEND THE WHITE HOUSE AN EMAIL MESSAGE AT THE ADDRESS CLINTONPZ YOU CAN TAP INTO A SIMILAR LIBRARY OF WHITE HOUSE DOCUMENTS AND A SIMILAR BULLETIN BOARD BY USING THE COMMAND WHITEHOUSE IF YOU BELONG TO MCI MAIL YOU CAN SEND THE WHITE HOUSE AN EMAIL MESSAGE AT THE ADDRESS WHITE HOUSE YOU CAN ALSO REACH A REPOSITORY OF WHITE HOUSE DOCUMENTS WITH THE COMMAND VIEW WHITE HOUSE IF YOU HAVE ACCESS TO THE INTERNET A FREE SYSTEM OF COMPUTER NETWORKS MAINLY AT UNIVERSITIES AND GOVERNMENT AGENCIES YOU CAN SEND THE WHITE HOUSE EMAIL MESSAGES VIA THE COMMERCIAL SERVICES EVEN IF YOU AREN'T A MEMBER OF THEM THE INTERNET ISN'T USERFRIENDLY SO YOU MUST USE ONE OF TWO UNGAINLY ADDRESSES 753003115@COMPUSERVECOM OR CLINTONPZ@AOLCOM TO SEND THE WHITE HOUSE EMAIL OR DOWNLOAD DOCUMENTS FROM THE ONLINE LIBRARIES YOU'LL HAVE TO FOLLOW THE RULES FOR THE PARTICULAR SERVICE YOU'RE USING AND USE THE COMMANDS BUILT INTO THE SOFTWARE THROUGH WHICH YOU'RE CONNECTING TO THEM IF YOU'RE USING A COMMERCIAL SERVICE LIKE COMPUSERVE AMERICA ONLINE OR MCI MAIL YOU'LL ALSO INCUR THEIR STANDARD USAGE FEES COMPUTER JOCKEYS WHO ARE COMFORTABLE WITH COMPLEX COMMANDS AND CAN LINK INTO THE INTERNET HAVE ANOTHER OPTION THEY CAN SUBSCRIBE FREE TO ELECTRONIC DELIVERIES OF WHITE HOUSE DOCUMENTS WHICH ARE ROUTED AUTOMATICALLY TO THEIR ELECTRONIC MAILBOXES THIS EXPERIMENTAL SERVICE CAN BE REQUESTED WITH A MESSAGE TO THE INTERNET ADDRESS CLINTONINFO@CAMPAIGN92 ORG YOU MUST USE THE WORD HELP AS THE SUBJECT OF YOUR MESSAGE THIS SERVICE SHOULD BE USED SPARINGLY IT ISN'T DESIGNED FOR HIGHVOLUME TRAFFIC ANOTHER SERVICE FOR COMPUTER EXPERTS ON THE INTERNET IS AN ONLINE DATABASE OF RECENT PRESIDENTIAL DOCUMENTS MAINTAINED AT THE UNIVERSITY OF NORTH CAROLINA INTERNET USERS CAN REACH THIS TROVE BY USING THE COMMAND TELNET SUNSITEUNCEDU AND LOGGING IN WITH THE WORD POLITICS BEFORE PC JUNKIES GET TOO EXCITED ABOUT THIS DIGITAL DEMOCRACY STUFF HOWEVER LET ME INJECT A FEW NOTES OF COLD REALITY FIRST THE PRESIDENT HIMSELF ISN'T A ROUTINE COMPUTER USER ACCORDING TO WHITE HOUSE AIDES AND HE DOESN'T PERSONALLY TAP INTO THESE ONLINE MESSAGES AND COMMENTS EVENTUALLY HE OR OTHER OFFICIALS MAY MAKE GUEST APPEARANCES ON LINE BUT DON'T HOLD YOUR BREATH SECOND THE BACKWARD WHITE HOUSE COMPUTER SYSTEM DOESN'T RECEIVE THE ELECTRONIC MESSAGES DIRECTLY AND THE MAIL ISN'T ANSWERED ELECTRONICALLY INSTEAD THE EMAIL MESSAGES ARE DELIVERED TO THE WHITE HOUSE ON DISK WHERE THEY ARE PRINTED OUT AND ANSWERED BY LOWLEVEL WORKERS THROUGH REGULAR PAPER MAIL SO IF YOU WANT AN ANSWER YOU MUST INCLUDE YOUR POSTAL ADDRESS IN THE EMAIL MESSAGE THIRD THE PRESIDENTIAL STAFF DOESN'T PARTICIPATE IN THE DISCUSSIONS ON THE WHITE HOUSE BULLETIN BOARDS OR READ THEM FULLY IF THE WHITE HOUSE DOESN'T SUIT YOUR FANCY ELECTRONIC ALTERNATIVES ABOUND THERE ARE BULLETIN BOARDS AND DATABASES DEVOTED TO THE REPUBLICAN PARTY AND ROSS PEROT'S UNITED WE STAND ORGANIZATION ON BOTH COMPUSERVE TYPE GO POLITICS AND AMERICA ONLINE TYPE ISSUES COMPUSERVE ALSO HAS A BULLETIN BOARD WHERE MEMBERS DEBATE THE VIEWS OF THE CONSERVATIVE RADIO TALKSHOW HOST RUSH LIMBAUGH GO ISSUES AN INDEPENDENT ONLINE SERVICE FOR CONSERVATIVES CALLED NATIONAL TOWN HALL IS JOINTLY RUN BY THE NATIONAL REVIEW AND THE HERITAGE FOUNDATION THINK TANK SO BE A GOOD ELECTRONIC CITIZEN AND CRANK UP THOSE COMPUTERS IF WE COULD ONLY VOTE THIS WAY WE'D NEVER HAVE TO LEAVE THE HOUSE 9303180029 930318 WHO'S NEWS SHAWMUT CHIEF ALVORD SEES HIS PAY DOUBLED AS BANK REVERSES LOSS HARTFORD CONN JOEL B ALVORD CHAIRMAN AND CHIEF EXECUTIVE OF SHAWMUT NATIONAL CORP RECEIVED TOTAL COMPENSATION FOR 1992 VALUED AT 13 MILLION ABOUT DOUBLE HIS 1991 PAY ACCORDING TO THE BANK'S PROXY STATEMENT IN ADDITION MR ALVORD RECEIVED STOCK GRANTS AND STOCK OPTIONS WHICH WOULD BE VALUED AT ABOUT 600000 OVER THE NEXT TWO YEARS AT SHAWMUT'S CURRENT STOCK PRICE SHAWMUT NEW ENGLAND'S THIRD LARGEST BANK WITH 252 BILLION IN ASSETS RETURNED TO PROFITABILITY IN 1992 AFTER POSTING LOSSES IN 1990 AND 1991 BOTH YEARS IN WHICH MR ALVORD WAS PAID 650000 A SPOKESMAN FOR SHAWMUT SAID THE BANK'S RECOVERY IN 1992 IS A KEY FACTOR IN MR ALVORD'S PAY SHAWMUT REPORTED 1992 NET INCOME OF 752 MILLION OR 81 CENTS A SHARE WHICH INCLUDED AN 184 MILLION CREDIT FOR TAXLOSS CARRYFORWARDS FOR THE YEAR MR ALVORD RECEIVED SALARY OF 650000 A 200000 IN BONUS AND 33750 IN CORPORATE CONTRIBUTIONS TO SAVINGS AND INSURANCE PLANS AS WELL MR ALVORD RECEIVED LARGE STOCK GRANTS AND OPTIONS ON JAN 17 1992 AFTER THE COMPANY HAD REPORTED TWO QUARTERS OF SLIM PROFITS FOLLOWING THREE QUARTERS OF HEAVY LOSSES THE GRANT WAS FOR 26000 SHARES THAT ARE VALUED AT 588250 BASED ON SHAWMUT'S CLOSING STOCK PRICE OF 22625 IN TRADING YESTERDAY THE SHARE GRANT IS TO BE GIVEN TO MR ALVORD IN THIRDS OVER THREE YEARS THE OPTIONS MR ALVORD RECEIVED IN JANUARY 1992 ALLOW HIM TO BUY 50000 SHARES OF SHAWMUT STOCK AT 10625 A SHARE HALF AS OF JAN 17 1993 AND THE REST A YEAR LATER AT YESTERDAY'S CLOSING STOCK PRICE THE OPTIONS ARE WORTH 600000 THE 13 MILLION TOTAL COMPENSATION FIGURES INCLUDES ONLY THOSE PORTIONS OF THE GRANTS AND OPTIONS THAT CAN BE CONVERTED TO CASH CURRENTLY 9303180028 930318 BUSINESS BRIEF WHITTAKER CORP COMPANY EXPECTS TO POST LOWER FISCAL 2NDPERIOD NET WHITTAKER CORP EXPECTS TO REPORT SLIGHTLY LOWER EARNINGS FOR THE APRIL 30 SECOND QUARTER BUT MANAGEMENT IS COUNTING ON MERGERS TO PRODUCE PERSHARE NET OF AT LEAST 155 FOR THE OCT 31 YEAR SAID EDWARD R MULLER VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE LOS ANGELES AEROSPACE AND DEFENSE ELECTRONICS CONCERN VIEWS ACQUISITIONS AND MERGERS AS CENTRAL TO ITS STRATEGY MR MULLER SAID THE TROUBLED AEROSPACE AND DEFENSE ELECTRONICS INDUSTRIES OFFER OPPORTUNITIES TO BUY COMPANIES AT BARGAIN PRICES WHICH WILL IMMEDIATELY INCREASE WHITTAKER'S EARNINGS HE SAID WHITTAKER EARNED 29 MILLION OR 31 CENTS A SHARE IN THE 1992 SECOND QUARTER ALL FROM CONTINUING OPERATIONS ON SALES OF 369 MILLION NET INCOME FOR FISCAL 1992 INCLUDING A 23 MILLION GAIN ON RESOLUTION OF CERTAIN TAX ISSUES FROM PREVIOUSLY DISCONTINUED OPERATIONS WAS 157 MILLION OR 166 A SHARE 9303180026 930318 COMMODITIES WHEAT PRICES RISE FOR THIRD CONSECUTIVE DAY ON HOPE FOR SOLUTION OF RUSSIAN CREDIT CRISIS BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US WHEAT PRICES SOARED FOR THE THIRD CONSECUTIVE DAY AMID GROWING HOPE THAT WESTERN POWERS ARE CLOSER TO RESOLVING THE RUSSIA CREDIT CRISIS IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY JUMPED 1175 CENTS A BUSHEL TO SETTLE AT 392 A BUSHEL CORN AND SOYBEAN PRICES ALSO ROSE MANAGERS OF COMMODITY FUTURES FUNDS BECAME HEAVY BUYERS AMID REPORTS OF RUSSIA AND UKRAINE WORKING ON AN AGREEMENT ON HOW TO DIVIDE THE DEBTS AND ASSETS FOR THE FORMER SOVIET UNION AN ACCORD WOULD HELP CLEAR THE WAY FOR THE INDUSTRIAL POWERS TO RESCHEDULE RUSSIA'S TOWERING FOREIGN DEBT GRAIN TRADERS EXPECT UKRAINE TO TAKE RESPONSIBILITY FOR 16 OF THE DEBTS OF THE FORMER SOVIET UNION RESCHEDULING RUSSIA'S DEBT SO THAT IT CAN GET OUT OF DEFAULT WOULD OPEN THE DOOR TO NEW FINANCING FROM THE WEST IN NOVEMBER FOR EXAMPLE RUSSIA WAS BLOCKED FROM USING A US CREDIT GUARANTEE PACKAGE WORTH ROUGHLY 250 MILLION BECAUSE IT DEFAULTED ON GRAIN LOANS THAT HAD ALREADY BEEN ARRANGED UNDER THAT US FARM EXPORT PROGRAM RUSSIA WHICH IS USUALLY A BIG CUSTOMER OF US FARMERS HASN'T BOUGHT A SIGNIFICANT AMOUNT OF US GRAIN SINCE THEN BANKERS REFUSE TO LEND TO MOSCOW WITHOUT WASHINGTON'S PROMISE TO MAKE GOOD ON GRAIN LOANS IF RUSSIA CANNOT SO FAR RUSSIA HAS MISSED 5258 MILLION IN PAYMENTS ON THE 42 BILLION OF USBACKED GRAIN DEBT FOR WHICH MOSCOW IS RESPONSIBLE AS A RESULT SEVERAL INTERNATIONAL BANKERS HAVE FILED CLAIMS TOTALING 2601 MILLION WITH THE AGRICULTURE DEPARTMENT THE MOST RECENT BANKS TO FILE CLAIMS ON THE SOUR LOANS INCLUDE THE MIAMI OFFICE OF BARCLAYS BANK PLC WHICH IS SEEKING ABOUT 40 MILLION AND DENVER'S NATIONAL BANK FOR COOPERATIVES WHICH IS SEEKING A TOTAL OF 200 MILLION FROM THE AGRICULTURE DEPARTMENT COBANK IS PART OF THE FEDERALLY CHARTERED FARMEROWNED FARM CREDIT SYSTEM IT ISN'T CLEAR HOW THE CLINTON ADMINISTRATION COULD LET RUSSIA USE THE UNALLOCATED CREDIT GUARANTEES OR WHETHER BANKERS WOULD BE WILLING TO LEND TO RUSSIA EVEN WITH THE GUARANTEES SOME AGRICULTURAL INTERESTS HAVE SUGGESTED THE ADMINISTRATION CONSIDER STRETCHING THE REPAYMENT PERIOD OF THE GUARANTEE PROGRAM TO SEVEN YEARS FROM THREE YEARS IN ADDITION TO CREDIT GUARANTEES SOME TRADERS ARE SPECULATING THAT THE WHITE HOUSE MIGHT TIME A SECOND DONATION OF FOOD TO MOSCOW TO COINCIDE WITH THE APRIL SUMMIT SLATED BETWEEN PRESIDENT CLINTON AND RUSSIAN PRESIDENT BORIS YELTSIN ALTHOUGH SOME MEMBERS OF CONGRESS HAVE BRANDED DONATIONS UNDER THE FOOD FOR PROGRESS PROGRAM A GIVEAWAY GRAIN TRADERS ARE REASONING THAT ANY DONATION MIGHT INCLUDE 394 MILLION BUSHELS OF US CORN 184 MILLION BUSHELS OF US WHEAT AND 250000 METRIC TONS OF US SOYBEAN MEAL A METRIC TON OF SOYBEANS EQUALS 367 BUSHELS ON FRIDAY THE CLINTON ADMINISTRATION ANNOUNCED A DONATION TO RUSSIA OF ABOUT 191 MILLION BUSHELS OF WHEAT AND 87000 METRIC TONS OF RICE A METRIC TON OF RICE EQUALS 489 BUSHELS GRAIN PRICES WERE ALSO BUOYED YESTERDAY BY THE AGRICULTURE DEPARTMENT'S SURPRISE OFFER OF 538 MILLION BUSHELS OF SUBSIDIZED WHEAT TO 31 AFRICAN NATIONS AND THREE BALTIC GOVERNMENTS UNDER A PROGRAM DESIGNED TO BOOST US FARM EXPORTS THE DEPARTMENT COMPENSATES EXPORTERS THAT SHIP DISCOUNTPRICED COMMODITIES TO TARGETED NATIONS IN OTHER GRAIN NEWS A SURVEY OF 507 FARMERS BY THE NATIONAL CORN GROWERS ASSOCIATION FOUND THEY INTEND TO SOW 2 FEWER ACRES THIS SPRING THAN LAST YEAR SEVERAL GRAIN ANALYSTS HOWEVER ARE PROJECTING CORN ACREAGE TO SLIP AS MUCH AS 6 BECAUSE LAST YEAR'S RECORD US HARVEST OF 948 BILLION BUSHELS HAS DEPRESSED CORN PRICES US CORN FARMERS PLANTED 793 MILLION ACRES LAST YEAR IN OTHER COMMODITY MARKETS YESTERDAY ENERGY LINGERING COLD WEATHER AND SPECULATIVE BUYING IN A TECHNICALLY DRIVEN MARKET PUSHED NATURAL GAS FUTURES PRICES SHARPLY HIGHER THE APRIL GAS CONTRACT BROKE THROUGH THE CRUCIAL TECHNICAL LEVEL OF 2 PER MILLION BRITISH THERMAL UNITS TO SETTLE 10 CENTS HIGHER FOR THE DAY AT 2013 A MILLION BTUS IS ABOUT 1000 CUBIC FEET OF NATURAL GAS THE MAY CONTRACT WAS UP 78 CENTS TO 1941 PER MILLION BTUS IN RELATED TRADING OF FUELS FUTURES APRIL PROPANE ROSE AGAIN FOR THE SIXTH CONSECUTIVE SESSION BUT HEATING OIL PRICES DECLINED WITH THE APRIL CONTRACT CLOSING DOWN 022 CENT A GALLON AT 5787 CENTS A GALLON CRUDE OIL FUTURES ROSE DESPITE TUESDAY'S DISCLOSURE OF A BEARISH BUILDUP OF US INVENTORIES LAST WEEK LIGHT LOWSULFUR CRUDE FOR APRIL DELIVERY INITIALLY DROPPED BELOW 20 A BARREL BUT BOUNCED BACK TO SETTLE AT 2017 UP FOUR CENTS FOR THE DAY 9303180025 930318 LEISURE & ARTS FILM UNCONVENTIONAL FAMILY DOWN UNDER BY JULIE SALAMON THERE'S A MOVIEWORLD SAYING THAT ACTION IS CHARACTER IN AUSTRALIAN DIRECTOR GILLIAN ARMSTRONG'S LATEST PICTURE THE LAST DAYS OF CHEZ NOUS YOU COULD SAY THAT A HOUSEHOLD IS CHARACTER THE HOUSEHOLD IS A SPRAWLING PLACE SO ARTFULLY CASUAL THAT EVEN THE MESS SEEMS DELIBERATE IT BELONGS TO BETH A FORTYISH WRITER WHO MIGHT BE DESCRIBED IN MANY WAYS BUT WHO EVERYONE WOULD AGREE IS CAPABLE SHE'S MADE A SUCCESS OF HER WORK SHE RUNS HER HOUSE SMOOTHLY SHE CAN SPEAK TO HER FRENCH HUSBAND PLAYED BY SWISS ACTOR BRUNO GANZ ALMOST AS FLUENTLY IN FRENCH AS IN ENGLISH AND SHE HAS RAISED A LOVELY DAUGHTER BETH IS A MAGNET FOR LESS ORDERLY PEOPLE WHO SEEK COMFORT FROM HER THEN RESENT HER FOR BEING THE KIND OF PERSON WHO CAN OFFER IT THE OTHER MEMBERS OF THE HOUSEHOLD ARE BETH'S CHARMING DISCONTENTED HUSBAND JP HER FLIGHTY YOUNGER SISTER A YOUNG BOARDER OBSESSED WITH AMERICAN JAZZ AND BETH'S TEENAGED DAUGHTER THE MOVIE IS SIMPLY ABOUT THEY WAYS THEY ADJUST OR DON'T ADJUST TO ONE ANOTHER ABOUT THE WAYS FAMILIES EVEN UNCONVENTIONAL ONES LIKE THIS ONE SIMULTANEOUSLY MAINTAIN DEEP CONNECTIONS AND GREAT SEPARATIONS IT'S SUBTLE UNLIKELY MATERIAL FOR A MOVIE THERE ARE NO GREAT EPIPHANIES OR PLOT TURNS EVEN THE ONES THAT EXIST AREN'T ALL THAT EMPHASIZED BUT SCREENWRITER HELEN GARNER AND MS ARMSTRONG THE DIRECTOR HAVE FOUND DEPTH EVEN PROFUNDITY IN THE LIMITED EMOTIONAL TERRAIN OF THEIR CHARACTERS THESE AREN'T GREAT VIBRANT INSPIRATIONAL PEOPLE OR EVEN LIKABLE ONES BUT THE FILMMAKERS HAVE A CANNY SENSE FOR THE TELLING DETAIL THAT MAKES FOR DRAMATIC TRUTH THEY UNDERSTAND FOR EXAMPLE THE WAY FOOD CAN BE A MEASURE OF A HOUSEHOLD'S EMOTIONAL TEMPERATURE WHEN VICKI THE WAYWARD SISTER RETURNS HOME FOR COMFORT AFTER CHASING A BOYFRIEND UNSUCCESSFULLY TO ITALY SHE BARELY GLANCES AT HER WELCOMEHOME CAKE BEFORE SHE SLICES INTO IT AND STARTS EATING GREEDILY IT DOESN'T TAKE MORE THAN THAT TO EMPHASIZE VICKI'S HUNGER WHICH WILL BE SATISFIED ONLY TEMPORARILY BY CHOCOLATE CAKE WHEN JP FINDS BETH HAS PREMATURELY TAKEN A BITE OUT OF A RARE CHEESE HE'D BEEN HOARDING UNTIL IT WAS AGED TO PERFECTION HIS ANGER CLEARLY TRANSCENDS THE CHEESE THIS ABSORBING INTELLIGENT PICTURE TAKES IN ALL THE POSSIBLE WAYS PEOPLE TRY TO FIND THEIR PLACE THOUGH MUCH OF THE ACTION OCCURS INSIDE BETH'S HOUSE JP IDENTIFIES HIMSELF AS AN OUTSIDER THERE THE CHARACTERS ARE SEEKING THEIR NATIONAL IDENTITIES AS WELL AS THEIR PRIVATE ONES VICKI REMEMBERS FEELING SLIGHTED AT THE WAY HER ITALIAN FRIENDS MOCKED HER AUSTRALIAN MANNERS AND DRESS THEN COMFORTS HERSELF WITH THE KNOWLEDGE THAT AT LEAST WE KNOW WHAT A BEACH IS BETH TRIES TO SETTLE OLD SCORES WITH HER ELDERLY FATHER BY TAKING A ROAD TRIP WITH HIM TO THE AUSTRALIAN OUTBACK JP MOCKS EVERYTHING AUSTRALIAN BUT BECOMES A CITIZEN SUGGESTIONS ARE MADE BY VARIOUS CHARACTERS ESPECIALLY JP THAT BETH'S INDEPENDENCE HAS SOMEHOW DEWOMANIZED HER AS THOUGH A PREREQUISITE FOR WOMANHOOD IS A TENDENCY TO FALL APART LISA HARROW THE BRITISH ACTRESS WHO PLAYS BETH HAS DONE A WONDERFUL JOB WITH THIS CHARACTER SHE'S A LARGE PRETTY WOMAN WHO CAN SEEM WARM BUT CAUTIOUS HER BETH ISN'T A CARICATURE OF CRISP EFFICIENCY SHE'S JUST SOMEONE WHO BELIEVES THAT ACTION IS CHARACTER AND SOMEHOW YOU FEEL SHE MUST BE DOING SOMETHING RIGHT HER DAUGHTER SEEMS SO SELFASSURED AND SPIRITED YET EMPATHETIC EVEN SO YOU SEE HOW FORMIDABLE BETH MUST LOOK TO SOMEONE LIKE VICKI PLAYED WITH SKILLFUL NERVOUSNESS BY KERRY FOX THE NEW ZEALANDER WHO WAS SO COMPELLING AS THE WRITER JANET FRAME IN AN ANGEL AT MY TABLE VICKI OPERATES WITHOUT ANY PLAN SHE SAYS SHE WANTS TO BE A WRITER LIKE HER SISTER BUT YOU NEVER SEE HER WRITING SHE'S INSTINCTUAL WHEN MUSIC MOVES HER SHE DANCES WHEN SHE HAS NO WORK SHE GOES ON THE DOLE UNTIL SOMETHING COMES ALONG BETH'S HUSBAND JP IS EQUALLY HAPHAZARD HE AND VICKI WANT TO BE FREE SPIRITS BUT THEY ALSO WANT A PLACE TO COME HOME TO SO THEY WILL INEVITABLY CLING TO SOMEONE LIKE BETH AND THEN BE ANGRY AT HER BECAUSE SHE ISN'T LIKE THEM CHEZ NOUS IS ABOUT SHIFTS NOT EARTHQUAKES IN RELATIONSHIPS ITS PLEASURES ARE IN ITS DETAILS AND THEY ARE VERY PLEASURABLE INDEED IN THE PAST FEW YEARS THE DOORS HAVE OPENED TO BLACK FILMMAKERS MOST OF THE BEST FILMS HAVE BEEN TALES OF LIFE AND DEATH IN THE URBAN GHETTO STORIES OF DRUGS GUNS AND EARLY DEATH THEY'VE MAINLY BEEN MOVIES ABOUT YOUNG MEN DIRECTED BY YOUNG MEN NOW A YOUNG BLACK WOMAN NAMED LESLIE HARRIS HAS WRITTEN AND DIRECTED A PICTURE ABOUT A YOUNG WOMAN'S LIFE IN THE URBAN GHETTO JUST ANOTHER GIRL ON THE IRT THE MOVIE BEGAN AS A FILM SKETCH FOR PLANNED PARENTHOOD A WARNING THAT THE BIGGEST THREAT TO GHETTO GIRLS IS EARLY PREGNANCY THAT REMAINS THE MESSAGE OF JUST ANOTHER GIRL WHICH OCCASIONALLY LAPSES INTO THE STYLE OF A PUBLICSERVICE ANNOUNCEMENT HOWEVER THE MOVIE IS DOMINATED BY MS HARRIS'S SAUCY SPIRIT AND WIT HER MAIN CHARACTER IS A STUBBORN SMART TEENAGER NAMED CHANTEL LIKE MANY TEENAGERS SHE SPEAKS TWO LANGUAGES ONE WITH FRIENDS ONE WITH ADULTS SHE PRESENTS HERSELF AS ON TOP OF IT ALL EVEN THOUGH SHE CARRIES A BIG LOAD SHE GOES TO SCHOOL AN HONOR STUDENT WORKS HELPS HER PARENTS TAKE CARE OF HER YOUNGER BROTHERS SHOPS PREENS FLIRTS AND PURSUES AND REJECTS BOYS THE APPEALING YOUNG ACTRESS ARIYAN JOHNSON UNDERSCORES CHANTEL'S COCKINESS AND VULNERABILITY THE PICTURE ISN'T SEAMLESS FEW OF THE MINOR PLAYERS APPROACH MS JOHNSON'S SKILL BUT MS HARRIS NICELY CAPTURES CHANTEL'S WORLD THIS IS A PROMISING DEBUT VIDEO TIP MS ARMSTRONG MAY BE BEST KNOWN FOR MY BRILLIANT CAREER BUT HER MOST BRILLIANT MOVIE WAS HIGH TIDE A 1987 PICTURE ABOUT A WOMAN SO UNABLE TO HANDLE LOVE THAT SHE LEFT HER OWN DAUGHTER FOR YEARS AND YEARS JUDY DAVIS IS ASTONISHINGLY GOOD AS THE WOMAN MANAGING TO SEEM WRECKED AND GLAMOROUS AND WISTFUL ALL AT ONCE 9303180024 930318 BUSINESS BRIEF HERSHEY FOODS CORP SALES AND OPERATING PROFIT ARE SEEN AT HIGHS FOR 1993 HERSHEY FOODS CORP SAID IT EXPECTS TO REPORT RECORD 1993 SALES AND OPERATING PROFIT BEFORE ACCOUNTING CHARGES WE'RE LOOKING FOR QUITE A DECENT YEAR WITH INCREASES IN BOTH SALES AND EARNINGS SAID RICHARD ZIMMERMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE ADDED THAT HERSHEY COULD AVERAGE DOUBLEDIGIT EARNINGS GROWTH THE HERSHEY PA FOOD AND CHOCOLATE CONCERN SAID IT WILL TAKE A FIRSTQUARTER CHARGE OF 100 MILLION OR 115 A SHARE FOR ACCOUNTING CHANGES RELATED TO CUMULATIVE POSTRETIREMENT MEDICAL BENEFIT COSTS AND INCOME TAXES THE CHARGE FOR RETIREE BENEFITACCOUNTING CHANGES THIS YEAR APART FROM THE CUMULATIVE 100 MILLION CHARGE FOR PRIOR YEARS WILL BE ABOUT NINE CENTS A SHARE MR ZIMMERMAN SAID HERSHEY REPORTED NET INCOME OF 2426 MILLION OR 269 A SHARE ON SALES OF 32 BILLION IN 1992 IN 1992'S FIRST QUARTER THE COMPANY HAD NET OF 589 MILLION OR 65 CENTS A SHARE ON SALES OF 801 MILLION 9303180023 930318 A NEW MARKET CHIROPRACTORS SEEKING TO EXPAND PRACTICES TAKE AIM AT CHILDREN THEY SAY MANIPULATING SPINE CAN CURE PEDIATRIC ILLS PHYSICIANS ARE DISMAYED DISCOURAGING IMMUNIZATION BY TIMOTHY K SMITH STAFF REPORTER OF THE WALL STREET JOURNAL A FIVEYEAROLD BOY WAS DELIVERED TO THE UNIVERSITY OF IOWA HOSPITAL LAST FALL WITH A CONDITION SELDOM SEEN SINCE THE ADVENT OF ANTIBIOTICS MASTOIDITIS AN INFECTION OF THE MIDDLE EAR SO ADVANCED THAT IT HAD INVADED HIS SKULL A FEW DAYS LATER WHEN DOCTORS HAD GOT THE INFECTION UNDER CONTROL THE BOY'S FOURYEAROLD SISTER WAS ADMITTED WITH A SIMILAR CRISIS HER MASTOIDITIS WAS SO SEVERE THAT HER FACE WAS PARTLY PARALYZED AND PUS WAS PRESSING AGAINST HER BRAIN HOSPITAL OFFICIALS ALARMED BY THIS REAPPEARANCE OF A ONCECOMMON CHILDHOOD SCOURGE INTERVIEWED THE PARENTS AND DISCOVERED THAT THEY HAD BEEN USING A CHIROPRACTOR AS THE FAMILY'S PRIMARYCARE DOCTOR THE CHIROPRACTOR HAD DIAGNOSED EAR INFECTIONS IN BOTH CHILDREN BUT INSTEAD OF SENDING THEM TO A PHYSICIAN FOR A STANDARD COURSE OF ANTIBIOTICS HE HAD TRIED TO CURE THEM BY MANIPULATING THE BONES IN THEIR SPINES THE GIRL IS NOW DEAF IN ONE EAR THE BOY IS STILL UNDER OBSERVATION FOR NEUROLOGICAL SYMPTOMS THE DECISION TO STEP OUTSIDE MEDICINE'S MAINSTREAM AND EXPLORE ALTERNATIVE TREATMENTS IS ONE THAT AMERICANS MAKE WITH SURPRISING EASE AND FREQUENCY IN A STUDY PUBLISHED IN JANUARY BY THE NEW ENGLAND JOURNAL OF MEDICINE ONE IN THREE ADULTS SAID THEY HAD TRIED SOME KIND OF UNORTHODOX THERAPY DURING THE PRECEDING YEAR DECIDING TO EXPOSE A CHILD TO ALTERNATIVE MEDICINE IS A FAR TRICKIER MATTER OF COURSE BUT MANY CHIROPRACTORS AROUND THE COUNTRY ARE MOUNTING AN EXTRAORDINARY CAMPAIGN TO PERSUADE PARENTS THAT THIS IS A STEP THEY SHOULD TAKE CHIROPRACTORS ARE CONDUCTING MARKETING SEMINARS HOLDING CONVENTIONS DISTRIBUTING PAMPHLETS AND COLORING BOOKS EVEN PUBLISHING TELEPHONEMARKETING SCRIPTS ALL WITH THE AIM OF DRAWING MORE CHILDREN AND INFANTS INTO THEIR PRACTICES FOR BASIC HEALTH CARE IF A CHILD GOES REGULARLY TO A CHIROPRACTOR THE CHIROPRACTOR WILL CARE FOR IT LIKE ANY OTHER HEALTHCARE PROFESSIONAL SAYS MOLLY RANGNATH DEPUTY EXECUTIVE DIRECTOR FOR PROGRAMS AT THE INTERNATIONAL CHIROPRACTORS ASSOCIATION WHICH BEGAN HOLDING ANNUAL CONFERENCES ON TREATING CHILDREN TWO YEARS AGO WHAT WE AS A NATIONAL ORGANIZATION ARE TRYING TO DO IS ENCOURAGE OR PROMOTE THIS TRYING TO EDUCATE OUR CHIROPRACTORS IN CHILD CARE AS A WHOLE THESE CHIROPRACTORS' PROPOSITION IS THAT LEGIONS OF CHILDHOOD AFFLICTIONS INCLUDING ASTHMA COLIC UPPER RESPIRATORY INFECTIONS SCOLIOSIS AND EVEN LEARNING DISABILITIES CAN BE CURED BY MANIPULATING THE SPINAL VERTEBRAE CHIROPRACTIC'S BASIC THEORY HOLDS THAT THESE AND MOST OTHER AILMENTS ARE CAUSED BY SLIGHT MISALIGNMENTS OR SUBLUXATIONS OF THE SPINE WHICH INTERFERE WITH NERVE SIGNALS FROM THE BRAIN ADJUSTING THE MISALIGNMENTS CHIROPRACTORS ARGUE CAN RESTORE THE NERVE SIGNALS AND CURE HEALTH PROBLEMS WITHOUT THE NEED FOR DRUGS OR INVASIVE PROCEDURES SOME CHIROPRACTIC LITERATURE SUGGESTS THAT SPINAL ADJUSTMENTS BEGIN WITHIN HOURS OF A BABY'S BIRTH MANY MEDICAL DOCTORS HEALTH OFFICIALS AND CHILDREN'S ADVOCATES AND EVEN SOME CHIROPRACTORS REGARD THIS AS A SYSTEMATIC ASSAULT ON SOME OF THE BASIC MEDICAL IMPROVEMENTS THAT THIS CENTURY HAS BESTOWED ON CHILDREN INCLUDING ANTIBIOTICS AND VACCINES I THINK IT'S UP TO PARENTS TO MAKE INFORMED DECISIONS AND THIS SOUNDS NUTS SAYS T BERRY BRAZELTON THE EMINENT PEDIATRICIAN INFORMED DECISIONS THOUGH DEPEND ON THE KIND OF INFORMATION THAT IS TRANSMITTED TO PARENTS AND THAT IS THE CRUX OF THE CURRENT CHIROPRACTIC MARKETING EFFORT A PAMPHLET DISTRIBUTED BY THE BABY ADJUSTERS A CHIROPRACTIC PUBLISHING COMPANY IN SOUTH BURLINGTON VT READS IN PART IF YOUR CHILD HAS A FEVER AND ACTS ABNORMALLY CALL YOUR CHIROPRACTOR YOUR CHILD MAY BE SUFFERING FROM A SUBLUXATION THAT IS INTERFERING WITH NORMAL BODY FUNCTION THIS CAN CAUSE A HIGH BODY TEMPERATURE AN ARTICLE IN TODAY'S CHIROPRACTIC MAGAZINE TITLED HOW TO BUILD A CHILDREN'S PRACTICE CONTAINS THE FOLLOWING FRANK ADVICE WHEN YOU HAVE FINISHED A CONSULTATION WITH A PARENT DISCUSS THE CHILDREN FIND A PROBLEM AND INVITE THE PARENT TO BRING IN HIS CHILD TO BE EXAMINED A COMPANY CALLED PETER PAN POTENTIAL CONDUCTS SEMINARS TO TEACH CHIROPRACTORS HOW TO ATTRACT MORE CHILDREN IN TRADEPRESS ADVERTISEMENTS IT EXHORTS CHIROPRACTORS TO DO YOUR PART TO CHANGE THE PERCEPTION OF CHIROPRACTIC WITH PATIENTS WHO AREN'T NEGATIVE OR SKEPTICAL THEY'RE CHILDREN A HALFPAGE ADVERTISEMENT PLACED BY A GROUP OF CHIROPRACTORS IN THE SAN DIEGO UNION IN THE FALL OF 1991 JUST BEFORE PUBLIC SCHOOLS REOPENED NOTIFIED PARENTS THAT CALIFORNIA LAW CLEARLY STATES THAT YOUR CHILDREN DO NOT HAVE TO BE IMMUNIZED TO ATTEND SCHOOL CHIROPRACTIC ORGANIZATIONS WITH THEIR EMPHASIS ON DRUGFREE HEALING HAVE FOR YEARS SUPPORTED CONSCIENCE CLAUSES IN STATE IMMUNIZATION LAWS ALLOWING PARENTS OF PUBLICSCHOOL CHILDREN TO OPT OUT OF VACCINATION PROGRAMS CHIROPRACTIC APPARENTLY IS THE MOST WIDESPREAD FORM OF GENERAL ALTERNATIVE MEDICINE IN THE US USED BY AN ESTIMATED 7 OF AMERICANS NOBODY KNOWS HOW MANY CHILDREN ARE BEING TREATED BY CHIROPRACTORS BUT OBSERVERS ON ALL SIDES OF THE ISSUE SAY THE NUMBER IS GROWING JENNIFER PEET A CHIROPRACTOR WHO FOUNDED THE BABY ADJUSTERS WITH HER HUSBAND A YEAR AGO SAYS THE PUBLISHING BUSINESS HAS GROWN SO RAPIDLY THAT I HAVEN'T BEEN ABLE TO KEEP TRACK OF IT FROM A SINGLE BOOK ON CHIROPRACTIC CARE OF NEWBORNS AND CHILDREN THE BABY ADJUSTERS HAS EXPANDED INTO NEWSLETTERS PAMPHLETS POSTERS LECTURE CHARTS AND AUDIOTAPES AND WE ARE NOW THINKING OF GOING INTO A FULLTIME MAGAZINE DR PEET SAYS SOME PARENTS ARE ATTRACTED TO CHIROPRACTIC CARE BECAUSE IT PROMISES DRUGLESS TREATMENT OUR YOUNGEST DAUGHTER IS GOING TO BE 10 AND SHE'S NEVER HAD A PRESCRIPTION SAYS DORIS BRACE OF NORTH FERRISBURG VT WHO TAKES HER SIX CHILDREN TO DR PEET'S CLINIC ONCE A MONTH I THINK IT'S BEEN WONDERFUL THEY HAVE AT TIMES HAD CHECKUPS AT REGULAR PHYSICIANS BUT BASICALLY THEY'VE NEVER BEEN ILL OTHER PARENTS TURN TO CHIROPRACTORS WHEN THEY FEEL THAT TRADITIONAL WESTERN MEDICINE HAS LET THEM DOWN A CONNECTICUT INSURANCE SALESMAN WHO ASKS NOT TO BE NAMED SAYS HE BEGAN TAKING HIS NINEMONTHOLD SON TO A CHIROPRACTOR WHEN ANTIBIOTICS FAILED TO CLEAR UP A CHRONIC EAR INFECTION AT THE MOMENT WE'RE RIDING THE FENCE BETWEEN DISCIPLINES HE SAYS THE PEDIATRICIAN SAYS WE'RE NUTS TO SEE A CHIROPRACTOR AND THE CHIROPRACTOR SAYS ALL THE ANTIBIOTICS ARE DOING IS WEARING DOWN HIS IMMUNE SYSTEM THESE PARENTS ARE NOT CASUAL EXPERIMENTERS THE SORT WHO WOULD TURN TO AN HERBALIST OR AN ACUPUNCTURIST FOR A CHILD'S PRIMARY CARE FOR REASONS HAVING TO DO WITH THE DISCIPLINE'S CURIOUS INSTITUTIONAL HISTORY CHIROPRACTIC HAS AN AUTHORITATIVE RESONANCE WITH PARENTS THAT OTHER ALTERNATIVE TREATMENTS DON'T THE CENTRAL THEORY THAT SUBLUXATIONS ARE THE CAUSE OF MOST MEDICAL PROBLEMS FIRST PROPOUNDED IN 1895 BY DD PALMER A DAVENPORT IOWA GROCER AND FISH VENDOR HAS NOT BEEN PROVEN ON THE CONTRARY A CENTURY'S WORTH OF MEDICAL SCIENCE SUGGESTS THAT THE BODY FUNCTIONS IN FAR MORE COMPLICATED WAYS STILL EVIDENCE SUGGESTS THAT SPINAL MANIPULATION CLEARLY BENEFITS SOME PEOPLE WITH BACK PAIN AND LOWBACK PAIN HAPPENS TO BE ONE OF THE COMMON AILMENTS THAT TRADITIONAL WESTERN MEDICINE HASN'T BEEN ESPECIALLY GOOD AT TREATING CHIROPRACTIC THUS HAS DEVELOPED AN EXTREMELY LOYAL FOLLOWING OVER THE YEARS AND ITS INSTITUTIONS HAVE TAKEN THEIR PLACE IN THE LEGAL AND REGULATORY NEXUS CHIROPRACTIC COLLEGES ARE ACCREDITED CHIROPRACTORS ARE LICENSED BY STATE BOARDS CHIROPRACTIC SERVICES ARE COVERED BY MEDICARE MEDICAID AND SOME PRIVATE INSURANCE PLANS ALL THIS LENDS WEIGHT TO THE CHIROPRACTORS' CURRENT MARKETING MESSAGE EVEN THOUGH THE DISCIPLINE REMAINS FUNDAMENTALLY A 19THCENTURY PHILOSOPHY WEARING THE WHITE SMOCK OF A SCIENCE A FEW CHIROPRACTORS ARE TRYING TO REDEFINE THEMSELVES AS SPECIALISTS IN MUSCULOSKELETAL DISORDERS OF THE BACK AND THEY ARE AMONG THE FIERCEST CRITICS OF CHIROPRACTORS WHO TREAT CHILDREN CHIROPRACTIC IS A LIMITED BRANCH OF MEDICINE HAVING TO DO WITH MUSCULOSKELETAL THERAPY AND THAT'S ALL IT IS SAYS CHARLES DUVALL A THIRDGENERATION CHIROPRACTOR IN AKRON OHIO AND A BOARD MEMBER OF THE NATIONAL COUNCIL AGAINST HEALTH FRAUD A PRIVATE WATCHDOG GROUP CHIROPRACTORS ARE TREATING ONEDAYOLD BABIES AND THE DIAGNOSIS IS SUBLUXATION FROM BIRTH TRAUMA' AND THEY HIT THEM IN THE NECK WITH SOME KIND OF ADJUSTING DEVICE IT'S LUDICROUS REPORTS OF INJURY TO CHILDREN UNDER CHIROPRACTIC CARE ARE SURFACING IN THE MEDICAL LITERATURE IN FEBRUARY 1992 A PAPER IN THE JOURNAL OF PEDIATRICS TOLD OF AN INFANT WITH A LARGE SPINAL CORD TUMOR IN WHOM CHIROPRACTIC MANIPULATION HAD CATASTROPHIC CONSEQUENCES AT THE AGE OF FOUR MONTHS THE CHILD HAD BEGUN TO HOLD HIS HEAD AT A TILT AND THE PARENTS TOOK HIM TO A CHIROPRACTOR THE CHIROPRACTOR MANIPULATED HIS SPINE TWICE AND AFTER THE SECOND TREATMENT THE CHILD WAS RUSHED LISTLESS AND GRUNTING TO THE ST LOUIS CHILDREN'S HOSPITAL DOCTORS PERFORMED SURGERY AND FOUND A LARGE TUMOR THAT EVIDENTLY HAD BEEN RUPTURED BY THE MANIPULATION SEVERELY AGGRAVATING HIS CONDITION THE CHILD IS NOW PARALYZED FROM THE NECK DOWN THAT PAPER PROMPTED A LETTER TO THE JOURNAL FROM A GROUP OF DOCTORS AT THE MARSHFIELD CLINIC IN MARSHFIELD WIS DESCRIBING MORE THAN A DOZEN CHILDREN WITH AN ARRAY OF PROBLEMS FOUR OF THEM WITH CANCER WHO WERE BROUGHT TO THE CLINIC AFTER FIRST UNDERGOING CHIROPRACTIC TREATMENTS IN ALL THESE CHILDREN THE DOCTORS WROTE INAPPROPRIATE DIAGNOSES AND TREATMENT FROM CHIROPRACTORS RESULTED IN DELAY OF CORRECT MEDICAL DIAGNOSES AND TREATMENT IN SPITE OF SUCH REPORTS MAINSTREAM MEDICAL ORGANIZATIONS HAVE HAD LITTLE TO SAY ABOUT CHIROPRACTIC TREATMENT OF CHILDREN MANY PHYSICIANS SAY THIS IS BECAUSE THEY FEAR THE LEGAL CLOUT OF CHIROPRACTORS WHO WON A MAJOR RESTRAINTOFTRADE LAWSUIT AGAINST THE AMERICAN MEDICAL ASSOCIATION SIX YEARS AGO IN THAT CASE A FEDERAL JUDGE RULED THAT THE AMA HAD ENCOURAGED AN ILLEGAL BOYCOTT OF CHIROPRACTORS AND IT PERMANENTLY BARRED THE ASSOCIATION FROM HINDERING THE PRACTICE OF CHIROPRACTIC WE CAN'T COUNTER THEIR ADVERTISING ESPECIALLY NOT AS A GROUP OF PHYSICIANS BECAUSE THEN YOU GET RESTRAINTOFTRADE LAWSUITS SAYS LORI FRASIER A PEDIATRICIAN WHO WORKS IN THE HOSPITAL WHERE THE SIBLINGS WITH MASTOIDITIS APPEARED WE WILL SEE MORE CHILDREN WHO ARE HARMED ON REVIEWING A SAMPLING OF CHIROPRACTORS' PROMOTIONAL LITERATURE PERTAINING TO CHILDREN KIRK B JOHNSON THE AMA'S SENIOR VICE PRESIDENT AND GENERAL COUNSEL SAYS THE AMA HAS NO PROBLEM WITH ALTERNATIVE MEDICINE AS LONG AS IT'S BEEN SHOWN ON SOME SCIENTIFIC BASIS TO BE SAFE AND EFFECTIVE A LOT OF THE PRACTICES IN THIS PEDIATRIC FIELD DON'T APPEAR TO FALL INTO THAT CATEGORY IN FACT THERE ARE PLAIN INACCURACIES AND SOME DANGEROUS PRACTICES BEING PROMOTED THE AMERICAN ACADEMY OF PEDIATRICIANS REFERS INQUIRIES TO ROGER F SUCHYTA CHAIRMAN OF ITS COMMITTEE ON PRACTICE AND AMBULATORY MEDICINE WHO SAYS THE ACADEMY HAS NEVER MADE A STATEMENT REGARDING TAKING KIDS TO CHIROPRACTORS I SUSPECT ONE REASON IS YOU START SAYING THAT CHIROPRACTIC IS NO GOOD AND YOU'LL HAVE THE WRATH OF THE CHIROPRACTORS ON YOU THAT'S THE MAJOR REASON PROBABLY SPEAKING AS A PRIVATE PEDIATRICIAN HE SAYS I'M APPALLED THIS CAN CAUSE SOME REAL HAVOC PHYSICIANS SAY THEY ARE PARTICULARLY CONCERNED ABOUT THE CHIROPRACTORS' SUGGESTION THAT SPINAL MANIPULATION CAN TUNE UP THE IMMUNE SYSTEM TO SUCH A POINT THAT VACCINATIONS AND ANTIBIOTICS AREN'T NECESSARY PARENTS THEY FEAR MAY BE RECEPTIVE TO THIS MESSAGE PRECISELY BECAUSE THESE DRUGS HAVE WORKED SO WELL PEOPLE NO LONGER REMEMBER THE HORRORS OF POLIO OR THE SCARS THAT MANY CHILDREN HAD BEHIND THEIR EARS AFTER SURGERY FOR MASTOIDITIS CHIROPRACTORS' CRITICS SAY IT IS ONE THING FOR AN ADULT TO REJECT THE LESSONS OF MEDICAL HISTORY AND EMBRACE A PHILOSOPHICAL ALTERNATIVE AND QUITE ANOTHER THING TO MAKE THAT DECISION ON BEHALF OF A CHILD IT'S CRIMINAL TO TELL KIDS NOT TO GET IMMUNIZATIONS BECAUSE SOMEHOW CRACKING THEIR BACKS CAN PREVENT INFECTIOUS DISEASE SAYS JOHN BOLTON A SAN FRANCISCO PEDIATRICIAN IT'S NOT REPORTABLE AS CHILD ABUSE ALTHOUGH IT'S CERTAINLY ABUSIVE RITA SWAN PRESIDENT OF CHILDREN'S HEALTHCARE IS A LEGAL DUTY A NONPROFIT ADVOCACY GROUP IN SIOUX CITY IOWA SAYS IT'S QUITE FRIGHTENING BECAUSE CHIROPRACTORS ARE STATELICENSED AND I'M NOT SURE THAT CHILDABUSE LAWS MANDATE THAT WE TAKE CHILDREN TO ACTUAL PHYSICIANS IF WE LICENSE THESE PEOPLE AND A PARENT TAKES A CHILD TO BE TREATED BY THEM CAN WE HOLD THE PARENT RESPONSIBLE IF THE CHILD IS INJURED OF COURSE CHIROPRACTORS WHO CLEAVE TO THE SUBLUXATION THEORY REGARD THAT QUESTION AS ABSURD IN THEIR VIEW IT IS IRRESPONSIBLE NOT TO HAVE A CHILD'S SPINE CHECKED FOR MISALIGNMENTS AND ADJUSTED AS FOR CRITICS WHO SAY THAT SEEING A CHIROPRACTOR FOR PRIMARY CARE CAN DELAY APPROPRIATE MEDICAL INTERVENTION MS RANGNATH OF THE ICA SAYS I THINK THEY HAVE IT BACKWARDS THERE HAVE BEEN MANY CHILDREN WHO HAVE BEEN TREATED BY DOCTORS WHO HAVE SAID 'I CAN'T DO ANYTHING MORE FOR YOU' AND AS A LAST RESORT THEY ARE TAKEN TO A CHIROPRACTOR AND THEY HAVE RECOVERED DR PEET THE VERMONT CHIROPRACTOR SAYS HER CLINIC ADJUSTS THE SPINES OF PERHAPS 150 TO 200 PATIENTS A DAY MOST OF THEM CHILDREN AND SOME OF THEM INFANTS WE CHECK THEM WHEN THEY'RE 24 HOURS OLD SHE SAYS VERY GENTLY IT'S ALMOST JUST A TAPPING WE PUSH THE BONE BACK INTO ALIGNMENT SHE SAYS SHE HAS CURED CHILDREN OF INFECTIONS ASTHMA ALLERGIES AND OTHER COMMON AILMENTS BUT ADDS THAT MOST OF HER WORK IS PREVENTIVE CHIROPRACTORS ARE SEEING THAT IF YOU START YOUNG WITH A CHILD YOU HAVE A BETTER CHANCE TO IMPROVE THEIR WELLBEING SHE SAYS STATE LAWS REGULATING CHIROPRACTORS VARY IN NEW YORK THEY ARE BARRED FROM TREATING INFECTIOUS DISEASES BUT IN MOST STATES THEY ARE NOT IN CALIFORNIA STATE REGULATIONS SEEM TO BE BASED ON A TAUTOLOGY A DOCTOR OF CHIROPRACTIC IN CALIFORNIA CAN TREAT ANY CONDITION AS LONG AS IT'S TREATABLE BY CHIROPRACTIC SAYS VIVIAN DAVIS EXECUTIVE DIRECTOR OF THE STATE'S BOARD OF CHIROPRACTIC EXAMINERS ASKED WHETHER SHE IS CONCERNED ABOUT MARKETING AIMED AT CHILDREN IN CALIFORNIA WHERE ALTERNATIVE MEDICINE IS PARTICULARLY POPULAR MS DAVIS SAYS I DON'T SEE WHY A PARENT SHOULDN'T BE ABLE TO HAVE ACCESS TO ALL KINDS OF MEDICAL CARE CERTAINLY A DOCTOR SHOULD BE ABLE TO BUILD UP THE BUSINESS SIDE OF HIS PROFESSION FOR CHIROPRACTORS WHO ARE UNSURE ABOUT HOW TO DO THIS A RECENT ARTICLE IN TODAY'S CHIROPRACTIC MAGAZINE SUGGESTS THE FOLLOWING HELPFUL SCRIPT PATIENT TODD IS IN GREAT SHAPE DOCTOR ANY HEALTH PROBLEM PATIENT NO NOT REALLY HE IS VERY ATHLETIC AND HAS LOTS OF ENERGY DOCTOR IS THERE ANY PROBLEM THAT HE HAS THAT YOU MIGHT CONSIDER TO BE NORMAL OR UNCURABLE PATIENT YOU MEAN LIKE HAY FEVER DOCTOR YES LIKE HAY FEVER PATIENT WELL TODD HAS HAY FEVER BUT SO DO I DOCTOR DO YOU KNOW WHAT I WOULD SUGGEST DOCTOR I WOULD SUGGEST YOU BRING YOUR CHILDREN WITH YOU ON THE NEXT VISIT I WILL DO A BRIEF CHECKUP AS A GIFT TO YOU AT NO CHARGE IF I FIND SOMETHING I FEEL WE CAN DO TO HELP THEM I WILL LET YOU KNOW 9303180022 930318 DON'T WAIT FOR A CHANGE OF HEART IN NORTH KOREA BY DAVID KAY NORTH KOREA'S ANNOUNCEMENT ON FRIDAY THAT IT WAS WITHDRAWING FROM THE NUCLEAR NONPROLIFERATION TREATY WHICH IT SIGNED IN 1985 IS BUT ITS LATEST AND MOST OVERT EFFORT TO AVOID COMPLYING WITH THE DEMANDS OF THE INTERNATIONAL ATOMIC ENERGY AGENCY FOR INSPECTIONS OF SUSPECT NUCLEAR SITES IRAQ WAS ALSO A SIGNATORY OF THE TREATY AND A MEMBER OF THE IAEA AT THE OUTBREAK OF THE GULF WAR AS MEMBERS IN GOOD STANDING OF THE IAEA BOTH IRAQ AND NORTH KOREA RECEIVED TECHNICAL ASSISTANCE INCLUDING EQUIPMENT AND TRAINING FROM THE IAEA WHILE DEVELOPING THEIR CLANDESTINE NUCLEAR PROGRAMS THESE DEVELOPMENTS RAISE SERIOUS DOUBTS AS TO WHETHER REAL CONFIDENCE CAN BE PLACED IN THE WORLD'S NONPROLIFERATION SYSTEM BUT IT IS NOT JUST THE IAEA THAT APPEARS TO BE UNPREPARED TO FACE THE REALITIES OF NUCLEAR WEAPONS IN THE HANDS OF THE NORTH KOREANS MARCH 10 FORMER SECRETARY OF STATE LAWRENCE EAGLEBURGER TESTIFIED BEFORE CONGRESS THAT IN HIS PERSONAL VIEW NORTH KOREA HAD NUCLEAR WEAPONS THE NEXT DAY THE STATE DEPARTMENT OFFICIAL IN CHARGE OF US POLICY IN THE IAEA REPORTEDLY TOLD A BRIEFING SESSION OF CONGRESSIONAL STAFFERS THAT THE CLINTON ADMINISTRATION DID NOT CONSIDER A NORTH KOREAN WITHDRAWAL FROM THE TREATY A SERIOUS POSSIBILITY SINCE IT WOULD NOT BE IN NORTH KOREA'S INTEREST TO DO SO LESS THAN 24 HOURS LATER NORTH KOREA WITHDREW MORE THAN 40 YEARS OF CONCENTRATING ON THE SOVIET NUCLEAR THREAT HAS LEFT WESTERN NONPROLIFERATION EFFORTS DOMINATED BY THE ASSUMPTION THAT OTHER NATIONS WOULD ACQUIRE PLAN FOR AND DEPLOY NUCLEAR WEAPONS THE WAY THE US AND SOVIET UNION DID THIS TUNNEL VISION CONTRIBUTED GREATLY TO THE NONPROLIFERATION ESTABLISHMENT'S OVERLOOKING THE IRAQI NUCLEAR PROGRAM AND FAILING TO ANTICIPATE OR COUNTER THE NORTH KOREAN THREAT FOR THE US AND THE SOVIETS IT BECAME CLEAR BY THE MID1960S THAT THE PURPOSE OF CONTINUING TO BUILD NUCLEAR WEAPONS WAS TO ENSURE THAT THEY WERE NEVER USED THERE ARE STRONG REASONS HOWEVER TO DOUBT THAT THE SYSTEM OF DETERRENCE BY WHICH THE US AND THE FORMER SOVIET UNION HELD ONE ANOTHER'S SOCIETIES HOSTAGE WILL BE EFFECTIVE AGAINST A NUCLEAR NATION OR TERRORIST DRIVEN BY EXTREME IDEOLOGY ETHNIC HATRED OR SELFDESTRUCTIVE BEHAVIOR IN THE PURSUIT OF POWER SADDAM HUSSEIN FAR FROM SEEKING DETERRENCE FOLLOWED A PATH THAT BEGGED ATTACK NORTH KOREA APPEARS TO BE ON THE SAME PATH INTELLIGENCE EFFORTS AND NONPROLIFERATION CONTROL ACTIVITIES MUST URGENTLY ADDRESS THE PROBLEM THAT STATES MAY BE SEEKING TO ACQUIRE AND USE NUCLEAR WEAPONS IN WAYS THAT WE HAVE UP UNTIL NOW DISMISSED AS IRRATIONAL AND NOT CREDIBLE BUT WHAT IS TO BE DONE NOW ABOUT NORTH KOREA THE INTERNATIONAL COMMUNITY CANNOT SIT BACK AND AS PRESIDENT CLINTON SAID ON MONDAY HOPE THAT NORTH KOREA WILL HAVE A CHANGE OF HEART THIS IS THE FAILED LOGIC THAT HELD OFF THE IAEA INSPECTIONS OF NORTH KOREA FOR EIGHT YEARS AFTER IT SIGNED THE NUCLEAR NONPROLIFERATION TREATY AND NOW HAS SEEN KIM IL SUNG DUMP EVEN THE FICTION OF HONORING THE LEGAL OBLIGATIONS OF THE TREATY AND IT IS HIS FAILED LOGIC THAT HAS LEFT THE WORLD ON THE BRINK OF NUCLEAR BLACKMAIL THE DECISION OF HOW TO RESPOND SHOULD BE MOVED IMMEDIATELY FROM THE IAEA TO THE UNITED NATIONS SECURITY COUNCIL WHICH HAS SHOWN IN IRAQ THAT IT IS CAPABLE OF MARSHALLING THE FULL POWER OF ITS MEMBERS TO DEMAND COMPLIANCE AND IMPOSE SANCTIONS IN THE FACE OF UNACCEPTABLE BEHAVIOR BY OUTLAW STATES IN JANUARY 1992 THE SECURITY COUNCIL UNANIMOUSLY ADOPTED A DECLARATION THAT THE SPREAD OF WEAPONS OF MASS DESTRUCTION WOULD CONSTITUTE A THREAT TO INTERNATIONAL PEACE AND SECURITY NORTH KOREA'S ACTIONS HAVE DIRECTLY CHALLENGED THIS DECLARATION THE SECURITY COUNCIL SHOULD CONDEMN NORTH KOREA'S REPEATED ACTIONS IN FRUSTRATING INTERNATIONAL INSPECTIONS AND DEMAND THAT THE LONGDELAYED IAEA INSPECTIONS BE ALLOWED TO TAKE PLACE WITHOUT HINDRANCE MOREOVER IT SHOULD TELL NORTH KOREA THAT WITHDRAWING FROM THE NUCLEAR NONPROLIFERATION TREATY DOES NOT MEAN IT WILL BE ABLE TO CLOAK ITS PURSUIT OF NUCLEAR TERRORISM THE SECURITY COUNCIL SHOULD ALSO MAKE CLEAR THAT IF THE IAEA INSPECTIONS UNDER THE TREATY DO NOT TAKE PLACE IT WILL IMPLEMENT UNDER CHAPTER VII OF THE UN CHARTER WHICH IT USED TO INSTITUTE EFFECTIVE INSPECTIONS IN IRAQ AN INSPECTION REGIME WITH FAR GREATER POWERS THAN THE NORMAL IAEA SAFEGUARD VISITS THE NORTH KOREANS SHOULD HAVE NO DIFFICULTY UNDERSTANDING THAT SUCH INSPECTIONS ARE FAR TOUGHER THAN THE TREATY INSPECTIONS THEY ARE TRYING TO ESCAPE ECONOMIC SANCTIONS SHOULD ALSO BE READIED TO SHOW THE NORTH KOREANS THAT DEFIANCE IS NOT COST FREE IN ADDITION THE SECURITY COUNCIL SHOULD PROVIDE UNEQUIVOCAL SECURITY GUARANTEES TO SOUTH KOREA AND JAPAN THAT ANY AGGRESSION BY NORTH KOREA WILL BE MET BY OVERWHELMING FORCE THESE GUARANTEES SHOULD BE GIVEN REALITY BY AUGMENTING THE US TROOPS ALREADY IN SOUTH KOREA WITH A MORE THAN SYMBOLIC ADDITIONAL CONTINGENT OF TROOPS FROM THE SECURITY COUNCIL'S PERMANENT MEMBERS UNLESS SUCH SUPPORT IS QUICKLY EXTENDED ONE CAN COUNT IN MONTHS THE TIME REMAINING BEFORE AN ASIAN NUCLEAR ARMS RACE BEGINS FINALLY CHINA SHOULD BE CHALLENGED TO LIVE UP TO ITS FREQUENT STATEMENTS THAT IT IS A RESPONSIBLE MEMBER OF THE FAMILY OF NATIONS FRIDAY CHINA BLOCKED AN IMMEDIATE SECURITY COUNCIL CONDEMNATION OF PYONGYANG'S ACTIONS THE CHINESE MUST BE MADE TO UNDERSTAND THAT EVEN IMPLICIT SUPPORT FOR NORTH KOREA'S THREATS WILL HARM BEIJING'S OWN INTERESTS CHINA IS THE ONLY STATE WITH ANY SIGNIFICANT INFLUENCE ON NORTH KOREA AND HAS BECOME THE ECONOMIC LIFELINE THAT SUPPORTS ITS DESTITUTE DERELICT REGIME EVERY EFFORT SHOULD BE MADE TO SEE THAT THIS CHINA CARD IS PLAYED IN THE INTEREST OF REGIONAL PEACE UNLESS THERE IS QUICK AND EFFECTIVE INTERNATIONAL ACTION TO STAND UP TO NORTH KOREA WE WILL WITNESS THE COLLAPSE OF THE NONPROLIFERATION REGIME AND THE OPENING OF A PERIOD OF UNPREDICTABLE NUCLEAR THREATS FROM ROGUE STATES TERRORISTS OR REGIONAL ETHNIC CONFLICTS A RUSH TO NUCLEAR ARMS PARTICULARLY IN ASIA BY THOSE WHO SEE THEMSELVES AS THREATENED BY SUCH DEVELOPMENTS WILL BE VERY HARD TO BLOCK IF THERE IS TO BE ANY HOPE OF TURNING THE TIDE IT MUST BEGIN WITH STRONG INTERNATIONAL ACTION TO FACE DOWN NORTH KOREA VIGOROUS US LEADERSHIP MUST BE FORTHCOMING IN THE INTERNATIONAL EFFORT TO CREATE THE POLICIES AND MULTINATIONAL STRUCTURES THAT CAN SUPPORT TOUGH INSPECTIONS AND WHERE THEY FAIL TO PROVIDE THE CAPABILITIES TO RESPOND TO NUCLEAR CRISES MR KAY WAS THE CHIEF NUCLEAR WEAPONS INSPECTOR FOR THE UN IN IRAQ DURING 1991 9303180021 930318 CANADIAN PROVINCES PREPARE TO RAISE TAXES SLASH SPENDING TO PARE DEFICITS BY SUZANNE MCGEE AND MARK HEINZL STAFF REPORTERS OF THE WALL STREET JOURNAL CANADA'S PROVINCIAL GOVERNMENTS UNDER HEAVY PRESSURE FROM NERVOUS INVESTORS AND CREDITRATING AGENCIES TO SLASH THEIR BUDGET DEFICITS ARE SET TO UNVEIL A SERIES OF SPENDING CUTS AND NEW TAXES IN THEIR BUDGETS FOR THE COMING FISCAL YEAR THIS APPROACH TO DEFICIT REDUCTION IS LIKELY TO BECOME APPARENT TODAY WHEN NEWFOUNDLAND AND SASKATCHEWAN BECOME THE FIRST PROVINCES TO INTRODUCE THEIR BUDGETS FOR THE FISCAL YEAR BEGINNING APRIL 1 BOTH GOVERNMENTS WARNING THEIR CITIZENS THAT DEFICIT REDUCTION IS A TOP PRIORITY HAVE PLEDGED TO SLASH SPENDING ON GOVERNMENT WAGES AND SOCIAL SERVICES SASKATCHEWAN PREMIER ROY ROMANOW HAS SAID COSTLY SOCIAL PROGRAMS FACE AMPUTATIONS RATHER THAN MERE CUTBACKS AS PART OF A PLAN TO CUT THE PROVINCE'S ESTIMATED ANNUAL DEFICIT OF 600 MILLION CANADIAN DOLLARS US4794 MILLION IN HALF IN THE 1994 FISCAL YEAR IN NEWFOUNDLAND DESPITE THE FACT THAT THE GOVERNING LIBERAL PARTY WILL FACE AN ELECTION BEFORE THE END OF THE YEAR THE PROVINCE'S PREMIER CLYDE WELLS WENT ON TELEVISION TO GIVE ADVANCE WARNING OF SPENDING CUTS HE ALREADY HAS RAISED INCOME TAXES AND NOW WANTS PROVINCIAL GOVERNMENT EMPLOYEES TO TAKE UNPAID LEAVES OF ABSENCE IT WOULD BE MOST IMPRUDENT TO IGNORE WARNINGS THAT THE BOND MARKET IS SENDING TO NEWFOUNDLAND AND OTHER PROVINCIAL GOVERNMENTS MR WELLS SAID HE ADDS THAT HE ISN'T WILLING TO JEOPARDIZE THE PROVINCE'S CREDIT RATING ALREADY THE LOWEST IN THE COUNTRY BY FAILING TO TAKE A HARD LINE THAT'S EXACTLY THE KIND OF TOUGH TALK THAT THE CREDIT MARKETS WANT TO HEAR ANALYSTS AND TRADERS SAY PROVINCES HAVE REACHED A TURNING POINT SAYS DOUGLAS SAWCHUK OF TORONTO'S DOMINION BOND RATING SERVICE EITHER THEY BUCKLE DOWN AND DO WHAT'S NECESSARY TO BRING THE DEFICITS UNDER CONTROL OR FACE CONSTRAINTS ON THEIR ABILITY TO FINANCE THOSE DEFICITS MOODY'S INVESTORS SERVICE INC OF NEW YORK CALCULATES THAT CANADA'S 10 PROVINCIAL GOVERNMENTS COLLECTIVELY RUN AN ANNUAL BUDGET DEFICIT OF NEARLY C25 BILLION US1998 BILLION TOTAL PROVINCIAL DEBT HAS CLIMBED TO ABOUT C250 BILLION SAYS BRIAN NEYSMITH PRESIDENT OF CANADIAN BOND RATING SERVICE IN MONTREAL IN ONTARIO DEBT HAS SOARED TO ABOUT C60 BILLION FROM C40 BILLION THREE YEARS AGO ONTARIO ALREADY HAS FORFEITED ITS PRIZED TRIPLEA CREDIT RATING AS ITS ANNUAL DEFICITS REACHED THE C10 BILLION MARK FURTHER RATING CUTS TO SINGLEA LEVELS WOULD HAMPER THE PROVINCE'S ABILITY TO RAISE FUNDS THROUGH LARGE GLOBAL ISSUES SUCH AS THE RECENT US15 BILLION OFFERING WHICH TAPPED CREDIT MARKETS THROUGHOUT NORTH AMERICA AND EUROPE TO AVOID THIS FRED BEVER POLICY ADVISER TO FLOYD LAUGHREN ONTARIO'S FINANCE MINISTER SAYS THE PROVINCE IS EYEING A RANGE OF TAX INCREASES AND SPENDING CUTS YOU'D BE CRAZY TO PLAY A KIND OF OSTRICH GAME AND JUST STICK YOUR HEAD IN THE SAND MR BEVER SAYS OF ONTARIO'S DEFICIT WHICH SOME ANALYSTS SAY COULD TOP C13 BILLION THIS YEAR SOME PROVINCES HAVE HAD A TASTE OF WHAT MIGHT HAPPEN IF THEY DON'T DELIVER WHAT THE BOND MARKET EXPECTS FOR EXAMPLE UNDERWRITERS HAD DIFFICULTY MARKETING A RECENT C250 MILLION ISSUE OF 15YEAR GOVERNMENT OF SASKATCHEWAN NOTES AMID UNCERTAINTY AHEAD OF THE PROVINCE'S BUDGET WAYNE LYSKI A PORTFOLIO STRATEGIST FOR ALLIANCE CAPITAL MANAGEMENT IN NEW YORK WHO TRADITIONALLY HAS INVESTED IN CANADIAN PROVINCIAL GOVERNMENT BONDS SAYS HE NOW IS REDUCING HIS HOLDINGS AND HAS NO PLANS TO PARTICIPATE IN FUTURE ISSUES OTHER INVESTORS ALSO HAVE TAKEN TO THE SIDELINES TRADERS REPORT IT LIKELY WILL BE YEARS BEFORE PROVINCIAL GOVERNMENTS RESTORE THEMSELVES TO FULL FINANCIAL HEALTH WILLIAM STREETER VICE PRESIDENT OF MOODY'S SAYS HE DOESN'T EXPECT ANY IMPROVEMENT IN PROVINCIAL GOVERNMENT REVENUES FOR ANOTHER YEAR AND SAYS TAX INCREASES COULD SQUASH A RECOVERY THAT IS JUST GETTING UNDER WAY MR NEYSMITH OF CANADIAN BOND RATING SERVICE SAYS HIS AGENCY WILL EVALUATE EVERY PROVINCE'S INIATIVES INDIVIDUALLY WE DON'T NEED MIRACLES BUT THE TOUGH DECISIONS NEED TO BE MADE HE SAYS A PROVINCE THAT FAILS TO REALIZE THIS WILL BE MET WITH AN EXCEPTIONALLY NEGATIVE REACTION 9303180020 930318 BUSINESS BRIEF COLUMBIA GAS SYSTEM INC EXCLUSIVITY PERIOD EXTENDED TO FILE REORGANIZATION PLAN COLUMBIA GAS SYSTEM INC SAID A FEDERAL BANKRUPTCY COURT IN DELAWARE APPROVED AN INTERIM EXTENSION OF THE PERIOD FOR THE WILMINGTON DEL COMPANY TO HAVE EXCLUSIVE RIGHTS TO FILE CHAPTER 11 PLANS OF REORGANIZATION COLUMBIA GAS AND ITS PIPELINES SUBSIDIARY SAID THEY HAVE BEEN MEETING WITH CREDITORS' COMMITTEES AND OTHER PARTIES TO HELP DEVELOP A REORGANIZATION PLAN AND THAT THEY SEE SOME PROGRESS THE COMPANY FILED FOR BANKRUPTCY COURT PROTECTION IN JULY 1991 CITING THE PROSPECT OF HUGE COSTS IT FACED UNDER TAKEORPAY NATURAL GAS PURCHASE CONTRACTS AT A TIME OF FALLING ENERGY PRICES 9303180019 930318 INSTITUTIONS PULL OUT BILLIONS OF DOLLARS FROM MONEY FUNDS NEW YORK INSTITUTIONAL INVESTORS PULLED BILLIONS OF DOLLARS OUT OF MONEY MARKET MUTUAL FUNDS IN THE LATEST WEEK AS TAXABLE YIELDS CONTINUED TO SLIP IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON ALL TAXABLE FUNDS EASED TO 269 FROM 271 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF THE TAXABLE FUNDS TRACKED BY MONEY FUND REPORT FELL 206 BILLION TO 48447 BILLION DESPITE THE ADDITION OF EIGHT FUNDS THAT DIDN'T PREVIOUSLY REPORT TO THE NEWSLETTER THIS BRINGS THE TOTAL TO 572 TAXABLE FUNDS ASSETS OF FUNDS OPEN ONLY TO INSTITUTIONS FELL 39 BILLION TO 16673 BILLION ALTHOUGH INSTITUTIONAL INVESTORS ACTUALLY WITHDREW ABOUT 56 BILLION FOUR NEW INSTITUTIONONLY FUNDS ADDED 17 BILLION BRINGING THE TOTAL TO 148 FUNDS INDIVIDUAL INVESTORS PUT 16 BILLION INTO 420 FUNDS OPEN TO THEM FOUR NEW FUNDS ADDED 200 MILLION THE AVERAGE SEVENDAY SIMPLE YIELD SLID TO 266 FROM 267 ACCORDING TO MONEY FUND REPORT WHILE THE AVERAGE 30DAY SIMPLE YIELD EASED TO 269 FROM 270 THE AVERAGE 30DAY COMPOUND YIELD SLIPPED TO 272 FROM 273 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY ONE DAY TO 60 DAYS INSTITUTIONAL INVESTORS ALSO PULLED ABOUT 5517 MILLION OUT OF TAXFREE MONEY FUNDS WHILE INDIVIDUAL INVESTORS ADDED ABOUT 3219 MILLION ASSETS OF THE 312 TAXEXEMPT MONEY FUNDS TRACKED BY MONEY FUND REPORT FELL 2298 MILLION TO 10275 BILLION IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXFREE FUNDS ROSE TO 181 FROM 175 IN THE WEEK THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 251 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 262 FOR SOMEONE PAYING 31 IN TAXES AVERAGE MATURITY OF THE TAXFREE FUNDS REMAINED AT 54 DAYS 9303180018 930318 WHAT'S NEWS WORLDWIDE INDICTMENTS WERE HANDED UP IN THE BOMBING OF THE WORLD TRADE CENTER MOHAMMED SALAMEH AND NIDAL AYYAD WERE CHARGED WITH PARTICIPATING IN THE FEB 26 BOMBING THAT KILLED SIX THE INDICTMENTS REPRESENT A BROADENING OF THE CHARGES AGAINST THEM AT THE TIME OF THEIR ARRESTS THEY FACE LIFE SENTENCES A THIRD MAN IBRAHIM ELGABROWNY WAS INDICTED ON LESSER CHARGES SEPARATELY A JUDGE RULED AN EGYPTIAN SHEIK WHOSE ANTIWESTERN RHETORIC ALLEGEDLY INSPIRED THE THREE MAY BE EXCLUDED FROM THE US WORLD TRADE CENTER OFFICIALS SAID THE 110STORY TOWERS WILL BEGIN THE PROCESS OF REOPENING TODAY WITH NEW YORK GOV CUOMO RETURNING TO HIS OFFICE THERE POLICE IN CALCUTTA ARRESTED TWO MEN IN CONNECTION WITH A BOMBING THAT LEVELED TWO BUILDINGS AND KILLED AT LEAST 50 PEOPLE TUESDAY OFFICIALS SAID THEY WERE UNSURE WHETHER THE BOMBING WAS INTENDED OR WHETHER EXPLOSIVES STORED IN PREPARATION FOR A SERIES OF ATTACKS LIKE THE ONE THAT KILLED ABOUT 300 LAST WEEK IN BOMBAY WENT OFF ACCIDENTALLY SERB FORCES EASED THEIR BLOCKADE OF UN RELIEF CONVOYS BUT AID BOUND FOR SREBRENICA WHERE A UN OFFICIAL SAID SEVERAL MUSLIM REFUGEES WERE KILLED IN FIGHTING OVER FOOD REMAINED STUCK AT THE SERBIABOSNIA BORDER SEPARATELY NATO APPROVED PLANS TO SEND AT LEAST 50000 TROOPS TO BOSNIA IF AGREEMENT IS REACHED ON ENFORCING A UN PEACE PLAN NORTH KOREA MAY BE GIVEN TIME TO RECONSIDER ITS DECISION TO WITHDRAW FROM AN INTERNATIONAL TREATY CONTROLLING THE SPREAD OF NUCLEAR TECHNOLOGY THE AGENCY CHARGED WITH ENFORCING THE TREATY WHICH MEETS TODAY SAID IT PROBABLY WOULD DELAY UNTIL MARCH 31 ANY FINDING THAT PYONGYANG VIOLATED THE PACT THE SENATE APPROVED A BILL TO REQUIRE STATES TO ALLOW VOTER REGISTRATION AT MOTOR VEHICLE OFFICES BUT NOT AT WELFARE AND UNEMPLOYMENT OFFICES AS DEMOCRATS WANTED THAT COMPROMISE ENDED A TWOWEEK REPUBLICAN FILIBUSTER BUT SETS UP A CONFLICT WITH THE VERSION OF THE BILL PASSED BY THE HOUSE WHICH PERMITS REGISTRATION AT THOSE SITES HONG KONG TENSIONS EASED AT LEAST FOR NOW AFTER AN EXPECTED FURTHER ATTACK BY CHINA ON A PLAN TO EXPAND DEMOCRACY IN THE TERRITORY FAILED TO MATERIALIZE MARKETS REACTED FAVORABLY WHEN A BEIJING OFFICIAL IN CHARGE OF HONG KONG AFFAIRS WHILE DENOUNCING THE BRITISH GOVERNOR GAVE A GENERALLY CONCILIATORY SPEECH A US FORCE WAS SENT TO THE SOMALI PORT OF KISMAYU TO TRY TO REIMPOSE A CEASEFIRE THAT HAD BEEN BROKEN BY WARRING MILITIAS THE TRUCE EARLIER HAD PERMITTED MOST US TROOPS TO PULL OUT OF THE AREA THE TRUCE BREAKDOWN ALSO WAS CITED BY A KEY MILITIA LEADER AS HE WITHDREW FROM UNSPONSORED TALKS ON RESTORING CENTRAL GOVERNMENT IN SOMALIA CLASHES CONTINUED IN ISRAEL AS MORE PALESTINIANS WERE WOUNDED BATTLING ISRAELI SOLDIERS AT A GAZA STRIP REFUGEE CAMP WEST BANK SETTLERS BURNED AN ARABOWNED GAS STATION IN FURTHER RETALIATION FOR THE DEATHS OF TWO SETTLERS STRUCK AND KILLED BY A CAR THIS WEEK OFFICIALS REMAIN UNSURE WHETHER THE FATAL INCIDENT WAS AN ACCIDENT OR NOT YELTSIN CALLED FOR STRONGER MILITARY AND ECONOMIC LINKS AMONG MEMBERS OF THE COMMONWEALTH OF INDEPENDENT STATES AS HE SOUGHT TO BROADEN SUPPORT IN HIS FIGHT WITH RUSSIA'S PARLIAMENT WHICH HAS STRIPPED HIM OF MOST POWERS A SPOKESMAN FOR THE RUSSIAN PRESIDENT SAID HIS ADVISERS BACK IMPOSING PRESIDENTIAL RULE IN THE CRISIS ANGOLA'S SECONDLARGEST CITY WAS RAZED IN TWO MONTHS OF FIGHTING BETWEEN GOVERNMENT AND REBEL TROOPS AND IS NOW ALMOST COMPLETELY DESERTED ACCORDING TO A PORTUGUESE JOURNALIST WHO RECENTLY RETURNED FROM HUAMBO HE SAID MOST RESIDENTS FLED THE CITY ONCE HOME TO 400000 BEFORE ITS CAPTURE BY UNITA REBELS EARLIER THIS MONTH A KURDISH LEADER CALLED FOR A CEASEFIRE WITH TURKEY AND SAID HE WANTED TO END HIS KURDISH WORKERS PARTY'S NINEYEAR STRUGGLE FOR A SEPARATE STATE KURDISH GUERRILLAS HAVE SUFFERED A STRING OF DEFEATS SINCE AN OFFENSIVE MOUNTED BY ANKARA BEGAN IN OCTOBER FEDERAL ELECTION OFFICIALS FINED 10 WEALTHY SUPPORTERS OF POLITICAL CAMPAIGNS INCLUDING DONALD TRUMP HENRY KRAVIS AND RONALD PERELMAN FOR VIOLATING A LIMIT ON CONTRIBUTIONS DIED HELEN HAYES 92 AN ACTRESS WHO WON THE HIGHEST HONORS OF STAGE FILM AND TELEVISION IN NYACK NY 9303180017 930318 INTERNATIONAL BRIEF KK TAIYO JUKEN DEVELOPER OF REAL ESTATE AND RESORTS IS INSOLVENT JAPANESE REAL ESTATE AND RESORT DEVELOPER KK TAIYO JUKEN IS INSOLVENT WITH DEBTS TOTALING 140 BILLION YEN 120 BILLION MAKING IT THE LARGEST FAILURE SO FAR THIS YEAR A PRIVATE CREDIT RESEARCH AGENCY SAID TEIKOKU DATA BANK LTD SAID TOKYOBASED TAIYO JUKEN BECAME INSOLVENT AFTER ITS CHECKS WEREN'T HONORED BY FINANCIAL INSTITUTIONS FOR A SECOND TIME A STANDARD DEFINITION FOR INSOLVENCY IN JAPAN TAIYO JUKEN WAS SET UP IN 1976 AS A REAL ESTATE AGENCY BEGINNING ITS BUSINESS IN REDEVELOPING THE SHINBASHI DISTRICT OF TOKYO TEIKOKU DATA BANK SAID IT BRANCHED INTO CONDO BUILDING IN THE BOOMING 1980S BUT HAS BEEN SQUEEZED BY THE RECENT REAL ESTATE DECLINE THE BOUNCED CHECKS RESULTED DESPITE TAIYO JUKEN'S EFFORTS TO SELL PROPERTY AND NEGOTIATE FOR EXTENSIONS ON ITS PAYMENTS 9303180016 930318 LETTERS TO THE EDITOR ATTENTIONDEFICIT DISORDER IT'S REAL I AM WRITING IN RESPONSE TO RICHARD E VATZ'S VERY DISTURBING MARCH 1 LETTER TO THE EDITOR IN WHICH HE PERPETUATES MANY MYTHS ABOUT ATTENTIONDEFICIT DISORDER ADD AND ITS TREATMENT IT IS INACCURATE TO ASSERT AS MR VATZ DOES THAT IT IS POSSIBLE TO DIAGNOSE ALMOST ANY NORMAL CHILD AS HAVING ADD TO THE CONTRARY FOR A CHILD TO BE DIAGNOSED AS HAVING ADD HE MUST DISPLAY MULTIPLE AND SEVERE SYMPTOMS OF INATTENTION AND IMPULSIVITY ACROSS A VARIETY OF SETTINGS IN ADDITION THESE SYMPTOMS MUST BE EVIDENT FOR AT LEAST SIX MONTHS AND HAVE AN ONSET BEFORE AGE SEVEN USING THESE STRICT CRITERIA TWO DECADES OF RESEARCH HAVE SHOWN ADD TO AFFECT ONLY 35 OF CHILDREN UNDER AGE 18 MR VATZ SUGGESTS THAT ADD IS A MEANINGLESS DISORDER LACKING SCIENTIFIC FOUNDATION IN FACT LANDMARK BRAIN IMAGING STUDIES BY THE NATIONAL INSTITUTE FOR MENTAL HEALTH PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE CLEARLY INDICATE THAT ADD IS RELATED TO ABNORMAL BRAIN BIOCHEMISTRY IN ASSERTING OTHERWISE MR VATZ WOULD HAVE US RETURN TO THE DAYS WHEN CHILDREN WITH ADD WERE LABELED STUPID LAZY OR TROUBLEMAKERS INSTEAD OF RECEIVING THE UNDERSTANDING AND EXTRA RESOURCES THAT ANY CHILD WITH A DISABILITY DESERVES FOR MANY CHILDREN MEDICATIONS SUCH AS RITALIN ARE INDEED ONE PART OF A MULTIMODAL TREATMENT PROGRAM THAT INCLUDES BEHAVIORAL MANAGEMENT EDUCATIONAL INTERVENTION AND COUNSELING ALTHOUGH HIGHLY EFFECTIVE IN CONTROLLING THE CENTRAL SYMPTOMS OF ADD MEDICATION IS NOT THE ONLY NOR THE PRIMARY TREATMENT AND AS WITH ANY PRESCRIPTION MEDICATION RITALIN CAN HAVE SIDE EFFECTS HOWEVER WITH APPROPRIATE MONITORING OF DOSAGE AND DURATION SIDE EFFECTS OF PSYCHOSTIMULANTS SUCH AS RITALIN CAN BE MINIMIZED OR ELIMINATED WE AGREE WITH MR VATZ ON ONE POINT IT IS WRONG TO SUGGEST THAT ADD IS A CAUSE FOR DEVIANCE IT IS NOT WITH PROPER DIAGNOSIS AND TREATMENT CHILDREN WITH ADD CAN BE QUITE SUCCESSFUL BOTH AS CHILDREN AND LATER AS ADULTS IT IS UNFORTUNATE THAT MR VATZ'S LETTER MAY INADVERTENTLY CAUSE SOME PARENTS OF CHILDREN WITH ADD TO AVOID THE VERY EARLY IDENTIFICATION AND TREATMENT THAT CAN BE CRITICAL FOR THEIR CHILDREN TO SUCCEED PROF VATZ'S LETTER ON ATTENTION DEFICIT HYPERACTIVE DISORDER IS REFLECTIVE OF DECADESOLD MISINFORMATION HIS REFERENCE TO THE AMERICAN PSYCHIATRIC ASSOCIATION'S DIAGNOSTIC MANUAL OF 1980 INCORPORATES INFORMATION THAT IS NO LONGER ACCEPTED HE DEMONSTRATES IGNORANCE OF PUBLISHED STUDIES OF MAGNETIC RESONANCE ON ADULTS WITH ADHD SHOWING ABNORMALITIES IN THEIR BRAIN STRUCTURE AS OPPOSED TO NONADHD AFFLICTED ADULTS HIS REFERENCE TO THE PARADOXICAL CALMING EFFECT OF RITALIN SIMILARLY DEMONSTRATES HIS IGNORANCE OF THE RESEARCH DONE BY SALLY AND BENNETT SHAYWITZ AT YALE UNIVERSITY SHOWING THAT IN ADHD INDIVIDUALS THERE IS A CENTRAL NERVOUS DEFICIENCY OF A CHEMICALNEUROTRANSMITTERNOREPINEPHRINE RITALIN AND OTHER STIMULANTS SUCH AS DEXEDRINE AND CYLERT STIMULATE THE BRAIN TO MANUFACTURE ENDOGENOUS NOREPINEPHRINE THUS BRINGING THE LEVEL OF NEUROTRANSMITTER UP TO NORMAL LEVELS HENCE THERE IS NO PARADOX EXCEPT TO THE UNINFORMED HIS STATEMENT THAT RITALIN CAUSES STUNTED GROWTH AND A VARIETY OF TICS IS SIMILARLY DECADESOLD MYTHOLOGY AND IS UNSUBSTANTIATED BY CURRENT MEDICAL RESEARCH TOURETTE'S SYNDROME IS NOT UNEQUIVOCABLY CAUSED BY RITALIN ALTHOUGH IT IS FELT BY SOME THAT IT MAY UNMASK IT MR VATZ WRITES THAT ADD IS NOT A DISEASE AND IS NOT A DIAGNOSABLE NEUROLOGICAL DISORDER ETC WELL I DON'T CARE WHAT YOU CALL IT OR DON'T CALL IT BUT I SAW MY 12YEAROLD SON'S BEHAVIOR AND REPORT CARD IMPROVE SUDDENLY AND DRAMATICALLY AS SOON AS HE BEGAN MEDICATION FOR THIS MYSTERY CONDITION OUR FAMILY AND MANY OTHERS LIKE US IS GRATEFUL THAT WHATEVER IT WAS IT WAS DIAGNOSED AND SUCCESSFULLY TREATED 9303180015 930318 CINCINNATI MILACRON PLANT CINCINNATI CINCINNATI MILACRON INC SAID IT WILL CLOSE ITS SANO PLASTICS EQUIPMENT MAKING OPERATION IN PASSAIC NJ CUTTING AT LEAST 100 EMPLOYEES THE MACHINE TOOL MAKER SAID IT WILL TRANSFER THE UNIT'S OPERATIONS TO A CINCINNATI MANUFACTURING FACILITY BY THE END OF THE SECOND QUARTER THE NEW JERSEY PLANT EMPLOYS 150 50 WORKERS WILL BE RETAINED OR OFFERED TRANSFERS CINCINNATI MILACRON SAID IT'S CLOSING THE PLANT TO IMPROVE MANUFACTURING EFFICIENCY 9303180014 930318 MARKETING & MEDIA CAPITAL CITIES UNIT WILL TRADE AIR TIME FOR EQUITY STAKES NEW YORK CAPITAL CITIES/ABC INC SAID IT FORMED A VENTURE CAPITAL UNIT THAT WILL GIVE NEW AND EMERGING COMPANIES AIR TIME FOR COMMERCIALS IN EXCHANGE FOR EQUITY STAKES IN THE COMPANIES THE UNIT'S PRESIDENT WILL BE GEORGE M CAIN 48 YEARS OLD CURRENTLY A SENIOR VICE PRESIDENT OF CAPITAL CITIES' ABC TELEVISION NETWORK GROUP CAPITAL CITIES SAID THE SUBSIDIARY CAPITAL CITIES CAPITAL WILL TAKE STAKES IN EMERGING COMPANIES AND IN RETURN WILL GIVE THEM ADVERTISING AIR TIME ON THE ABC NETWORK AND ABCOWNED STATIONS MR CAIN SAID THE NEW VENTURE WILL GIVE CAPITAL CITIES SECONDARY SOURCES OF INCOME AND NEW ADVERTISING CUSTOMERS THE LIFEBLOOD OF THE FUTURE MR CAIN SAID HE EXPECTS MOST COMPANIES WILL USE THEIR FREE AIR TIME WITHIN A YEAR THE UNIT PLANS TO DEVELOP A PORTFOLIO OF COMPANIES RANGING FROM STARTUPS TO MORE ESTABLISHED EMERGING FIRMS WITH REVENUE BETWEEN 200 MILLION AND 300 MILLION MR CAIN SAID THE GROUP WILL SEEK EQUITY STAKES OF UP TO 15 TO 20 STEERING CLEAR OF MAJORITY OWNERSHIP UNDER THIS ARRANGEMENT A NEW COMPANY WOULD HAVE MORE OPTIONS FOR CASH THAT WOULD HAVE GONE TO PAY FOR ADVERTISING MR CAIN SAID THE NEW UNIT HIRED THE NEW JERSEY INVESTMENT BANKING FIRM OF WILLIAM SWORD & CO TO SCOUT COMPANIES IN INDUSTRIES THAT SHOW GROWTH POTENTIAL AND HIGH PROFIT MARGINS CAPITAL CITIES CAPITAL ALREADY IDENTIFIED SIX OR SEVEN CANDIDATES FOR INVESTMENT INCLUDING AN APPAREL MANUFACTURER AND TWO FOOD COMPANIES MR CAIN SAID THE FIRST INVESTMENT SHOULD BE ANNOUNCED WITHIN A MONTH ONE VENTURE CAPITALIST HERB WILKINS OF SYNDICATED COMMUNICATIONS VENTURE PARTNERS II LP SAID INSTEAD OF LETTING THE AIR TIME LAPSE IT'S BETTER TO BARTER IT FOR EQUITY 9303180013 930318 ENTERPRISE MANY COMMUNITY BANKS ARE SKEPTICAL THAT CLINTON PLAN WILL SPUR MORE LOANS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL MANY COMMUNITY BANKS ARE SKEPTICAL THAT PRESIDENT CLINTON'S PLAN TO SPUR SMALL BUSINESS LENDING WILL SUCCEED MAINLY BECAUSE THEY DOUBT REGULATORY EXAMINERS WILL LOOSEN THE REINS MUCH ON SUCH LOANS RESPONDING TO A INDUSTRYSPONSORED SURVEY EARLY THIS WEEK THREE OUT OF FOUR BANKERS FROM NINE WESTERN STATES SAID THEY HAD LITTLE OR NO CONFIDENCE THE PRESIDENT'S PLAN WOULD LEAD TO MORE LENDING BY A SIMILAR MARGIN THEY EITHER DOUBT OR DO NOT EXPECT THE NEW INITIATIVES TO CAUSE REGULATORS TO BECOME MORE REASONABLE DURING EXAMS ALTHOUGH SOME BIG BANKS RECENTLY EXPRESSED SUPPORT FOR THE PRESIDENT'S PROGRAM SMALLER BANKS GENERALLY RECEIVE THE BULK OF SMALLBUSINESS LOAN APPLICATIONS PRESIDENT CLINTON'S PLAN UNVEILED LAST WEEK CALLS FOR REGULATORY AGENCIES TO RELAX SOME OF THE COLLATERAL AND APPRAISAL REQUIREMENTS ON SMALL BUSINESS LOANS FOR STRONG BANKS SO THEY COULD RELY MORE ON A BORROWER'S CHARACTER KEY TO THE PLAN IS FOR REGULATORS TO MOVE AWAY FROM LOW VALUATIONS ON REAL ESTATE WHICH OFTEN SERVE AS COLLATERAL FOR LOANS AND TAKE INTO ACCOUNT THE FUTURE VALUE OF PROPERTIES EVEN THOUGH BANKERS ARE ENCOURAGED BY THE PRESIDENT'S INITIAL EFFORTS THEY KNOW THAT PREVIOUS EFFORTS BY THE BUSH ADMINISTRATION TO URGE THE REGULATORS TO EASE WERE FUTILE AND IN FACT REGULATORS GOT EVEN TOUGHER SAID NANCY SHEPPARD EXECUTIVE DIRECTOR OF THE WESTERN INDEPENDENT BANKERS GROUP WHICH CONDUCTED THE SURVEY AT ITS ANNUAL CONVENTION IN SAN DIEGO NINE OUT OF 10 OF THE RESPONDENTS MOST OF WHOM ARE EXECUTIVES OF COMMUNITY BANKS WITH LESS THAN 100 MILLION IN ASSETS BELIEVE THE REGULATORS ARE MORE STRICT THAN THEY NEED TO BE I DON'T THINK THE ADMINISTRATION HAS A PRAYER OF CHANGING IT WILLIAM ISAAC A FORMER HEAD OF THE FEDERAL DEPOSIT INSURANCE CORP AND NOW MANAGING DIRECTOR OF SECURA GROUP SAID OF THE TOUGH ATTITUDE OF BANK EXAMINERS IN THE FIELD HE AND OTHER BANKING EXPERTS BELIEVE BROAD NEW BANKING LAWS IN 1991 AND 1989 ALONG WITH THE BLAME PLACED ON REGULATORS FOR THE SAVINGS AND LOAN DEBACLE HAVE PUT EXAMINERS ON GUARD IN RESPONSE TO THE BANKERS A TREASURY SPOKESMAN SAID THE ESSENCE OF THE PROGRAM THE PREVIOUS ADMINISTRATION HAD WAS TO USE PEP TALKS AND SPEECHES TO CONVINCE EXAMINERS TO MOVE THE PROGRAM MORE TOWARD THE CENTER BUT WITHOUT ANY CHANGES IN THE WRITTEN REGULATIONS OUR PROGRAM NOT ONLY INVOLVES POLICY GUIDANCE TO EXAMINERS BUT ALSO INCLUDES WRITTEN REGULATIONS DEFINING NEW PROCEDURES THAT WILL MAKE THE PROGRAM WORK MEANWHILE ROGER ALTMAN THE DEPUTY TREASURY SECRETARY TOLD A HOUSE SUBCOMMITTEE THAT BANKERS AND CONSUMERS ARE OFTEN FRUSTRATED BY RULES AND REGULATIONS THAT APPEAR ARBITRARY AND YET THERE HAS BEEN NO WAY TO COMPLAIN EFFECTIVELY OUR PLAN WILL CHANGE THIS THUS FAR PRESIDENT CLINTON HASN'T PROPOSED LEGISLATION TO DO AWAY WITH OR CHANGE MANY OF RULES THAT BANKERS SAY HAVE MULTIPLIED THE DOCUMENTATION REQUIRED FOR A BANK TO MAKE LOANS AND REMAIN IN COMPLIANCE WITH THE LAW IF HE DOES BANKERS SAY THEY EXPECT MR CLINTON WILL RUN INTO STRONG OPPOSITION FROM MANY MEMBERS OF THE HOUSE AND SENATE BANKING COMMITTEES WHICH IMPOSED THE REGULATIONS IN THE FIRST PLACE EXECUTIVES OF SOME MEDIUMSIZED BANKS ALSO SAID THEY DOUBTED THE PRESIDENT'S PLAN WOULD DO MUCH GOOD CARL SCHMITT CHAIRMAN OF UNIVERSITY NATIONAL BANK & TRUST CO IN PALO ALTO CALIF WITH 350 MILLION IN ASSETS TOOK SPECIFIC EXCEPTION TO SOME OF THE PROPOSALS ONE PROPOSAL FOR INSTANCE WOULD TELL EXAMINERS NOT TO CALL FOR LOANLOSS RESERVES WHEN PLACING A LOAN IN THE SOCALLED OTHER ASSETS ESPECIALLY MENTIONED CATEGORY WHICH USUALLY IS DONE BECAUSE OF MISSING DOCUMENTATION NOT CREDIT QUALITY MR SCHMITT SAID HE HAS LONG FELT RESERVES IN THOSE CASES SHOULDN'T APPLY BUT HE ISN'T CONFIDENT THAT EVEN THE PRESIDENT'S PLAN WILL MAKE THAT CHANGE ALBERT R KARR CONTRIBUTED TO THIS ARTICLE 9303180012 930318 LETTERS TO THE EDITOR DON'T FORGET WE RISK OUR LIVES FOR YOU AS A NEW YORK CITY PARAMEDIC I WAS GREATLY SURPRISED THAT YOUR MARCH 1 EDITORIAL THE BIG BOOM NEGLECTED TO MENTION THE EMERGENCY MEDICAL TECHNICIANS AND PARAMEDICS WHO ALSO RISKED THEIR LIVES DURING THE WORLD TRADE CENTER EXPLOSION WHILE PORT AUTHORITY AND NEW YORK CITY POLICE OFFICERS AND FIREFIGHTERS DID A TERRIFIC JOB THE HUNDREDS OF PARAMEDICS AND EMERGENCY MEDICAL TECHNICIANS THE ST VINCENT'S WORLD TRADE CENTER PARAMEDICS ARE POSTED ONLY YARDS FROM THE BLAST ON THE B1 LEVEL RECEIVED LITTLE ATTENTION PARAMEDICS AND EMERGENCY MEDICAL TECHNICIANS RESPOND TO MORE THAN A MILLION CALLS EVERY YEAR DISASTERS VIOLENT CRIMES MEDICAL EMERGENCIES AND AUTOMOBILE ACCIDENTS PARAMEDICS RECEIVE COLLEGELEVEL TRAINING IN ASSESSING AND TREATING MEDICAL AND SURGICAL EMERGENCIES AND PERFORM CARDIAC DEFIBRILLATION INTRAVENOUS THERAPY DRUG ADMINISTRATION ENDOTRACHAEL INTUBATION BREATHING TUBES THAT GO INTO THE PATIENT'S LUNGS AND A VARIETY OF EMERGENCY SURGICAL PROCEDURES MORE THAN 150 EMS WORKERS WERE ASSAULTED IN THE CITY LAST YEAR AIDS TUBERCULOSIS AND HEPATITIS ARE A CONSTANT THREAT TO US BUT OUR PRIMARY PROBLEM IS ONE OF RECOGNITION NEW YORKERS DON'T LIKE TO THINK ABOUT US UNTIL THEY NEED US AND OUR SALARIES AND BENEFITS LAG FAR BEHIND THE OTHER EMERGENCY SERVICES THE DAY OF THE TRADE CENTER BLAST MY PARTNER AND I CARRIED 100 POUNDS OF EQUIPMENT UP 34 FLIGHTS TO TREAT A CRITICALLY ILL PREGNANT WOMEN HAVING SEIZURES THEN ALONG WITH FIREFIGHTERS AND POLICE OFFICERS WE CARRIED HER DOWN IT'S NOT AS DRAMATIC AS HELICOPTERS LANDING ON THE ROOF BUT THE MOTHER AND BABY ARE DOING FINE 9303180011 930318 CLINTON'S PLAN FOR ECONOMY IS SEEN GAINING HOUSE VOTE TODAY IS LIKELY TO SUPPORT PRESIDENT ON TAXES AND SPENDING BY DAVID ROGERS AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON APPEARED ASSURED OF VICTORY TODAY IN THE FIRST MAJOR TEST OF HIS ECONOMIC PROGRAM AS HOUSE DEMOCRATS MOVED TO BLUNT A CONSERVATIVE EFFORT TO ALTER HIS 16 BILLIONPLUS STIMULUS BILL TO THE TUNE OF MINSTREL BOY MR CLINTON WAS PIPED INTO A ST PATRICK'S DAY LUNCH AT THE CAPITOL EVEN AS THE HOUSE RULES COMMITTEE UPSTAIRS MOVED INEXORABLY TO TIGHTEN THE LEADERSHIP'S GRIP ON THE SPENDING BILL AND AN ACCOMPANYING BUDGET RESOLUTION CONSERVATIVE DEMOCRATS LED BY TEXAS REP CHARLES STENHOLM ARE EXPECTED TO BE DENIED AN OPPORTUNITY TODAY TO OFFER AN AMENDMENT DEMANDING ADDITIONAL SPENDING CUTS TO OFFSET MUCH OF THE STIMULUS PACKAGE'S COST THOUGH REPUBLICANS MAY RESURRECT THE SAME CHALLENGE DEMOCRATS WERE CONFIDENT OF THE VOTES TO WITHSTAND ANY ATTACK THE PRESIDENT WANTS IT HIS WAY HE DOESN'T WANT IT CHARLIE'S WAY SAID HOUSE MAJORITY WHIP DAVID BONIOR D MICH A MEMBER OF THE RULES PANEL AND THE FACT OF THE MATTER IS THAT'S THE WAY IT'S GOING TO BE THE BUDGET RESOLUTION WHICH WILL MOVE FIRST ON THE FLOOR TODAY IS A MASSIVE FIVEYEAR TAX AND SPENDING BLUEPRINT SPELLING OUT THE CLINTON ADMINISTRATION'S AMBITIOUS DEFICITREDUCTION PLAN BUT FROM THE OUTSET THE SHORTTERM STIMULUS BILL HAS BEEN THE MORE NETTLESOME ISSUE IN THE HOUSE AND COULD YET FACE OBSTACLES IN THE SENATE WHERE THE DEMOCRATIC PARTY'S CONSERVATIVE MORE RURAL WING IS STRONGER THE NEARLY 163 BILLION MEASURE CARRIES AN ADDITIONAL 32 BILLION FOR FEDERALLY FINANCED HIGHWAY AND PUBLIC WORKS AS THE ECONOMY HAS IMPROVED DEMOCRATS HAVE EMPHASIZED THE LONGERTERM INVESTMENT ASPECTS OF THE BILL BUT THE WHITE HOUSE HAS HELD TIGHT TO ITS RATIONALE THAT THE PACKAGE REPRESENTS EMERGENCY SPENDING AND IS THEREFORE EXEMPT FROM STATUTORY BUDGET CAPS ENACTED THREE YEARS AGO REPUBLICANS HAVE TRIED TO EXPLOIT THIS WEAKNESS AND THE OPENING DEBATE YESTERDAY WAS LACED WITH REFERENCES TO EXPENDITURES SUCH AS 100000 FOR THE STUDY OF AN ENDANGERED MONTANA FISH THAT DON'T FIT THE USUAL CONCEPT OF AN EMERGENCY BUT GIVEN THE POLITICAL STAKES DEMOCRATS HAVE BEEN RELUCTANT TO RISK EMBARRASSING THE PRESIDENT THERE IS MORE SUPPORT FOR THE PRESIDENT THAN THE PACKAGE SAID REP JOHN SPRATT D SC MR STENHOLM HIMSELF SEEMED CAUTIOUS OF OVERPLAYING HIS HAND AND HAS MAINTAINED HIS TIES TO THE WHITE HOUSE THIS WEEK BEYOND MR CLINTON'S PERSONAL APPEALS THE LOBBYING EFFORT REFLECTS A RENEWED DISCIPLINE FORCED BY THE PARTY LEADERSHIP AND THE DEMOCRATS' SOPHISTICATION IN TARGETING THE HOME STATES OF INFLUENTIAL LAWMAKERS THESE GUYS HAVE A COMMUNICATIONS NETWORK THAT MAKES THE LAST ADMINISTRATION'S LOOK LIKE TWO TIN CANS AND A STRING SAID SENATE MINORITY WHIP ALAN SIMPSON WHOSE WYOMING CONSTITUENTS HAVE BEEN REMINDED OF HOW THE STIMULUS BILL HELPS YELLOWSTONE NATIONAL PARK AND FOREST TRAILS STEPPING BACK MASSACHUSETTS DEMOCRATIC REP BARNEY FRANK SAID MR CLINTON IS POISED TO CLAIM VICTORY IN THE MOST FUNDAMENTAL FIGHT OVER THE DIRECTION OF NATIONAL POLICY SINCE THE BEGINNING OF RONALD REAGAN'S PRESIDENCY AND DEMOCRATS HELD OUT HOPE THAT THE USUALLY FRACTIOUS PARTY WOULD BE MORE UNITED IN SUPPORTING THEIR VERSION OF THE CLINTON BUDGET THAN REPUBLICANS WOULD BE IN OPPOSING IT WITH MODERATES AND CONSERVATIVES ON BOARD THE HOUSE BUDGET COMMITTEE'S PROPOSAL TO SHRINK THE DEFICIT BY NEARLY 500 BILLION OVER FIVE YEARS INCLUDING ABOUT 62 BILLION IN SPENDING CUTS BEYOND THOSE SUGGESTED BY MR CLINTON APPEARS HEADED FOR EASY PASSAGE BY PREVAILING IN HIS INSISTENCE THAT TAX INCREASES ARE NECESSARY TO NARROW THE DEFICIT THE PRESIDENT HAS SUCCEEDED IN HIGHLIGHTING IDEOLOGICAL DIVISIONS AMONG REPUBLICANS BUILDING ON THE DEEP SPENDING CUTS DETAILED BY GOP MEMBERS OF THE HOUSE BUDGET COMMITTEE A GROUP OF MODERATE REPUBLICANS OFFERED AN ALTERNATIVE THAT WOULD ELIMINATE THE PROPOSED ENERGY TAX WHILE PRESERVING TAX INCREASES ON PEOPLE WITH TAXABLE INCOMES ABOVE 200000 TEXAS REP DICK ARMEY THE CONSERVATIVE CHAIRMAN OF THE HOUSE REPUBLICAN CONFERENCE RESPONDED YESTERDAY BY RUSHING OUT A NEWS RELEASE TRUMPETING OVERWHELMING OPPOSITION WITHIN THE GOP CAUCUS TO ANY AND ALL TAX INCREASES IN VOTES SCHEDULED FOR TODAY A MAJORITY OF REPUBLICANS ARE EXPECTED TO SUPPORT THE GOP BUDGET COMMITTEE PLAN PREPARED BY OHIO REP JOHN KASICH FOR THEIR PART SENATE REPUBLICANS ARE TO MEET THIS MORNING TO CONSIDER A COMPREHENSIVE ALTERNATIVE PREPARED BY NEW MEXICO SEN PETE DOMENICI THE RANKING REPUBLICAN ON THE BUDGET COMMITTEE MR DOMENICI'S PROPOSAL WOULD REDUCE THE DEFICIT NEARLY 500 BILLION OVER FIVE YEARS BY FREEZING MOST DOMESTIC DISCRETIONARY PROGRAMS CUTTING OTHERS TRIMMING DEFENSE SPENDING AND REDUCING COSTOFLIVING ADJUSTMENTS FOR FEDERAL BENEFIT PROGRAMS OTHER THAN SOCIAL SECURITY THE DOMENICI PROPOSAL WOULD RAISE SOME TAXES ON THE WEALTHY BUT OFFSET THEM THROUGH TAX CUTS TO SPUR INVESTMENT EVEN IF SENATE REPUBLICANS CAN'T UNITE BEHIND AN ALTERNATIVE THE COMBINATION OF GOP SENATORS AND RESTLESS DEMOCRATS MAY WELL FORCE SOME ADJUSTMENTS IN THE BUDGET PROPOSAL PRODUCED BY SENATE BUDGET COMMITTEE CHAIRMAN JAMES SASSER D TENN TO MOLLIFY DISGRUNTLED DEMOCRATS PARTY LEADERS ARE CONSIDERING TRIMMING THE PROPOSED TAX INCREASE ON THE SOCIAL SECURITY BENEFITS FOR THE MOST AFFLUENT RECIPIENTS AND MAY MODIFY PROPOSED INCREASES IN GRAZING FEES ROYALTIES ON MINERALS EXTRACTED FROM PUBLIC LANDS AND USER FEES FOR NAVIGATION ON INLAND WATERWAYS BUT MR SASSER'S PROPOSAL IS STILL EXPECTED TO HAVE AT LEAST 485 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS 9303180010 930318 WHAT'S NEWS BUSINESS AND FINANCE CONSUMER PRICES CLIMBED 03 IN FEBRUARY ADDING TO WORRY THAT INFLATION MAY BE ACCELERATING EXCLUDING FOOD AND ENERGY PRICES ROSE 05 BUT ANALYSTS SAID IT IS TOO SOON TO CONCLUDE THAT INFLATION IS RETURNING TO A LEVEL THAT COULD THREATEN ECONOMIC GROWTH SEPARATELY INDUSTRIAL PRODUCTION INCREASED 04 IN FEBRUARY MARKING ITS FIFTH ADVANCE IN A ROW BOND PRICES EDGED UP AS TRADERS APPARENTLY CONCLUDED INFLATION IS STILL UNDER CONTROL WHILE STOCKS SLID AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIALS FELL 1621 POINTS TO 342674 DEMOCRATS PREDICTED CLINTON'S 16 BILLIONPLUS ECONOMIC STIMULUS BILL WILL BE PASSED IN THE HOUSE WITHOUT AMENDMENTS SOUGHT BY CONSERVATIVES WHO WANT ADDITIONAL CUTS IN SPENDING A BUDGET RESOLUTION OUTLINING THE PRESIDENT'S FIVEYEAR DEFICITREDUCTION PLAN APPEARS HEADED FOR EASY PASSAGE FOREIGNERS WITHDREW 395 BILLION MORE FROM DIRECT INVESTMENTS IN THE US LAST YEAR THAN THEY PUT IN THE NET WITHDRAWAL THE FIRST IN DECADES WAS MORE THAN OFFSET BY OTHER FOREIGN INVESTMENTS SUCH AS CORPORATE AND GOVERNMENT DEBT AND BANK DEPOSITS AMERICAN AIRLINES IS GROUNDING 25 MCDONNELL DOUGLAS DC10 JETS IN ITS FLEET IN A MOVE THAT THE AMROWNED CARRIER SAID WILL CUT ITS CAPACITY BY 3 THIS YEAR AND ULTIMATELY LEAD TO SOME LAYOFFS AND SERVICE CUTBACKS MCDONNELL DOUGLAS IS BEING INVESTIGATED BY THE SEC OVER AN ALLEGED ATTEMPT BY THE COMPANY TO SUPPRESS INFORMATION ABOUT LOSSES ON ITS CONTRACT TO BUILD THE C17 MILITARY TRANSPORT JET A LEADING LAWMAKER MEANWHILE SAID HE FAVORS KILLING THE C17 PROGRAM NORTHWEST AIR'S MACHINISTS OPENED SEPARATE TALKS WITH THE AILING AIRLINE ENDING LABOR UNITY OVER 883 MILLION IN CONCESSIONS SOUGHT BY THE COMPANY MANY COMMUNITY BANKS DOUBT THAT CLINTON'S PLAN TO SPUR SMALL BUSINESS LENDING WILL SUCCEED A SURVEY FOUND THEY AREN'T CONFIDENT THAT REGULATORS WILL ACTUALLY ALLOW MORE SUCH LOANS US WHEAT PRICES SURGED FOR THE THIRD CONSECUTIVE DAY AMID GROWING HOPE THAT WESTERN POWERS ARE CLOSER TO RESOLVING THE RUSSIAN CREDIT CRISIS ANHEUSERBUSCH SAID ITS FIRSTQUARTER EARNINGS WILL BE LOWER THAN EXPECTED WITH THE BIG BREWER'S PERSHARE PROFIT DROPPING ABOUT 7 THE COMPANY SAID BAD WEATHER BEFORE ST PATRICK'S DAY DEPRESSED BEER SALES TOKYO STOCKS JUMPED 11 WEDNESDAY TO THEIR HIGHEST LEVEL IN NEARLY SIX MONTHS SPURRED BY A RALLY IN TELECOMMUNICATIONS STOCKS THE MARKET CONTINUED TO CLIMB THURSDAY MORNING GLAXO PLANS TO START SELLING ITS NEW MIGRAINE DRUG IN THE US THIS MONTH AT A WHOLESALE PRICE OF 2690 A DOSE BONDS LEHMAN BROTHERS TREASURY INDEX 501879 UP 582 COMMODITIES OIL 2017 A BARREL UP FOUR CENTS DOW JONES FUTURES INDEX 13036 OFF 091 SPOT INDEX 12529 OFF 022 DOLLAR 11720 YEN UP 020 16615 MARKS OFF 00025 9303180009 930318 A GOOFY RULING FROM THE SEC PUTS DISNEY UP AGAINST THE WALL BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL HOW MUCH IS ONE SHARE OF WALT DISNEY CO WORTH IN THE MARKET 45 BUT IF IT'S ART THE CORRECT ANSWER CAN BE 112 SO SAYS THE SECURITIES AND EXCHANGE COMMISSION THE FEDERAL AGENCY HAS DECREED THAT AT LEAST TWICE THE MARKET PRICE IS APPROPRIATE FOR A SINGLE DISNEY SHARE AFTER IT HAS BEEN MATTED FRAMED SHIPPED AND MADE SUITABLE FOR HANGING IN A CHILD'S BEDROOM AT FIRST GLANCE IT MAY NOT SEEM THAT AN AUGUST BODY SUCH AS THE SEC WOULD BE REQUIRED TO DECIDE SUCH A QUESTION BUT THEN IT IS THE SEC'S MISSION TO SOLVE PROBLEMS FOR INVESTORS AND IF YOU WANT TO SEE PROBLEMS JUST TRY ASKING YOUR BROKER TO PURCHASE A SINGLE DISNEY SHARE FOR YOUR GRANDCHILD'S BIRTHDAY LAWRENCE WILSHER OF MICHIGAN DID AND AS A RESULT OF THE RESPONSE A BUSINESS WAS BORN MY BROKER SAID GET OUT OF HERE' MR WILSHIRE RECALLS ASIDE FROM ANNOYING YOUR BROKER SINGLESHARE PURCHASES CAN BE VERY EXPENSIVE AS MANY BROKERS CHARGE MINIMUM COMMISSIONS AND AT ANY RATE THEY DON'T DO FRAMING HIS WHOPPING MARKUP OVER THE MARKET PRICE OF THE SHARES IS LARGELY MANDATED BY THE SEC WHICH REVIEWED HIS PLAN AND ISSUED GROUND RULES MR WILSHER SAYS MOST OF HIS CUSTOMERS ARE BUYING GIFTS FOR KIDS WHO PRESUMABLY WOULD APPRECIATE A CERTIFICATE MORE FOR ITS LIVELY BORDER OF ANIMATED DISNEY CHARACTERS DUMBO BAMBI AND MICKEY MOUSE THAN FOR ITS INVESTMENT VALUE THE NOTION CONFOUNDS A DISNEY SPOKESMAN WHO SAYS THE ONLY REASON TO BUY ANY STOCK WOULD BE AS AN INVESTMENT I'M NOT SURE WHY ANYBODY WOULD WANT IT AS A WALL HANGING SOME BUYERS ASKED ABOUT BUYING THE DISNEY CERTIFICATES WITHOUT FRAMES BUT MR WILSHER CAN'T OFFER A NAKED OPTION HE PROMISED THE SEC THAT HE WOULD SELL ONLY FRAMED CERTIFICATES AND CHARGE A MINIMUM OF TWICE THE MARKET PRICE ACTUALLY HE'S CHARGING ABOUT 2 1/2 TIMES FRAME INCLUDED IN EXCHANGE THE SEC SAID IT WON'T REQUIRE MR WILSHER TO REGISTER AS A BROKER OR DEALER HE'S CERTAINLY NOT GOING TO BE A MARKETMAKER SINCE HE HAS PROMISED NOT TO REPURCHASE ANY OF THE SHARES HE SELLS MR WILSHER NOW RATES THE SEC STAFFERS AS THE NICEST PEOPLE I HAVE EVER DEALT WITH IN MY LIFE HE ADDS I THINK THEY WERE HOLDING BACK THEIR LAUGHTER WHILE I WAS TELLING THEM WHAT I WANTED TO DO AT THE SEC CHIEF COUNSEL ROBERT COLBY OF THE MARKET REGULATION DIVISION SAYS HE AND HIS STAFF SIMPLY ADDED STOCKFORART'SSAKE TO THE LIST OF UNUSUAL INQUIRIES THEY FIELD SUCH AS APPLICATIONS FROM PRISONERS SEEKING TO BECOME BROKERDEALERS MR WILSHER AND THE SEC STAFF WORKED OUT THE PRICING OF THE FRAMED CERTIFICATES THE SEC STAFF WANTED ASSURANCES THAT THE PRICE WAS SUFFICIENTLY HIGH THAT IT DIDN'T LOOK LIKE THEY WERE SELLING STOCK AS INVESTMENTS MR COLBY SAYS THAT'S HOW THE TWO PARTIES AGREED THE PRICE WOULD BE AT LEAST TWICE THE MARKET IT SEEMS EVERYBODY IS AN ART CRITIC IF I WERE DOING IT THE SEC'S MR COLBY SAYS I WOULD BUY MY KIDS MCDONALD'S STOCK BECAUSE THEY'RE A MAJOR REASON IT'S DOING SO WELL MR WILSHER SAYS HE'S CONSIDERING OFFERING MCDONALD'S CORP SHARES AS WELL AS SOME MORE ADULTORIENTED STOCKS SUCH AS HARLEYDAVIDSON INC HE WON'T SPECIFY HIS RETURN ON INVESTMENT TO DATE BUT HE SAYS IT'S BETTER THAN INVESTING IN STOCKS 9303180008 930318 WHO'S NEWS WITCO CORP WITCO CORP NEW YORK CARL R SODERLIND 58 YEARS OLD WAS NAMED SENIOR VICE PRESIDENTEXTERNAL AFFAIRS AND A MEMBER OF THE MANAGEMENT COMMITTEE OF THIS MANUFACTURER OF SPECIALTY CHEMICAL AND PETROLEUM PRODUCTS AND ENGINEERED MATERIALS PREVIOUSLY HE WAS GROUP VICE PRESIDENTCOMMERCIAL SERVICES 9303180007 930318 WHO'S NEWS TWO OFFICIALS QUIT FLEET FINANCIAL IN RESTRUCTURING BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL PROVIDENCE RI FLEET FINANCIAL GROUP INC CONFIRMED THE RESIGNATION OF TWO VICE CHAIRMEN AND ANNOUNCED THE APPOINTMENT OF THREE NEW VICE CHAIRMEN AS PART OF A CORPORATE RESTRUCTURING THE BANKING COMPANY NEW ENGLAND'S LARGEST WITH 47 BILLION IN ASSETS SAID ROBERT MUSHKIN 53 YEARS OLD VICE CHAIRMAN IN CHARGE OF FLEET'S NEW ENGLAND AND NEW YORK BANKING GROUPS AND CHARLES CAREY 52 VICE CHAIRMAN IN CHARGE OF COMMERCIAL BANKING WILL BE LEAVING THE COMPANY FLEET SAID THAT THE ROLES OF BOTH EXECUTIVES WOULD HAVE BEEN DIMINISHED UNDER A RESTRUCTURING THE COMPANY ANNOUNCED AND THEY ELECTED TO RESIGN UNDER THE REORGANIZATION FLEET IS REMOVING ITS RETAIL BANKINGINCLUDING OPERATIONS OF BRANCH OFFICES CONSUMER PRODUCTS AND SERVICES FROM MANAGEMENT BY THE COMPANY'S SUBSIDIARIES IN VARIOUS STATES PRESIDENTS OF FLEET'S SUBSIDIARY BANKS WILL NOW INCREASE THEIR TRADITIONAL INVOLVEMENT IN WHOLESALE BANKING INCLUDING COMMERCIAL INDUSTRIAL AND REAL ESTATE LENDING WHILE ALL RETAIL BANKING IS RUN BY MICHAEL ZUCCHINI A NEWLY APPOINTED VICE CHAIRMAN WHO WILL BE BASED IN PROVIDENCE MR ZUCCHINI 46 FORMERLY AN EXECUTIVE VICE PRESIDENT WHO ENGINEERED THE SWIFT CONSOLIDATION OF BANK OF NEW ENGLAND WILL NOW OVERSEE ABOUT 19000 OF FLEET'S 27000 EMPLOYEES RUNNING 800 BRANCH OFFICES IN NEW YORK MASSACHUSETTS RHODE ISLAND CONNECTICUT MAINE AND NEW HAMPSHIRE ALONG WITH ABOUT 200 OTHER OFFICES THAT OFFER MORTGAGE LENDING AND CONSUMER FINANCE IN 40 STATES WE'RE MANAGING THE BUSINESS LIKE A MERRILL LYNCH OR A WALMART WHERE YOU SIMPLY TAKE PRODUCT LINES AND MANAGE THEM CENTRALLY SAID CHAIRMAN AND CHIEF EXECUTIVE OFFICER TERRENCE MURRAY ROBERT J HIGGINS 47 CHIEF EXECUTIVE OFFICER OF FLEET BANK HARTFORD THE COMPANY'S CONNECTICUT UNIT WAS APPOINTED TO THE ADDITIONAL ROLE OF VICE CHAIRMAN TO OVERSEE WHOLESALE BANKING OPERATIONS HANDLED BY THE VARIOUS SUBSIDIARY PRESIDENTS THE THIRD NEWLY APPOINTED VICE CHAIRMAN IS H JAY SARLES 48 WHO HAS BEEN PRESIDENT OF THE OLD BANK OF NEW ENGLAND OPERATIONS IN MASSACHUSETTS AND CONNECTICUT THAT FLEET BOUGHT IN 1991 MR SARLES NOW ASSUMES RESPONSIBILITY FOR STRATEGIC PLANNING AND MERGERS AND ACQUISITIONS FOR THE COMPANY FLEET ALSO SAID EUGENE MCQUADE 43 FORMERLY A SENIOR VICE PRESIDENT FOR FINANCE HAS BEEN APPOINTED EXECUTIVE VICE PRESIDENT MR MCQUADE WILL BECOME CHIEF FINANCIAL OFFICER IN JUNE WHEN JOHN FLYNN 52 WHO DECIDED LAST AUGUST TO TAKE EARLY RETIREMENT LEAVES FLEET 9303180006 930318 ABREAST OF THE MARKET STOCKS FALL 1621 ON INFLATION DATA HEALTHCARE STOCKS ARE HIT HARD BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS SLUMPED ON CONFUSING NEWS ABOUT INFLATION AND HEAVY SELLING OF HEALTHCARE STOCKS THE DOW JONES INDUSTRIAL AVERAGE SKIDDED 1621 TO 342674 STANDARD & POOR'S 500STOCK INDEX FELL 306 TO 44831 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 148 TO 24733 HEALTHCARE STOCKS WERE PARTICULARLY HARD HIT AFTER THE WASHINGTON POST REPORTED THAT WHITE HOUSE ADVISER IRA MAGAZINER WILL PROPOSE VARIOUS OPTIONS FOR IMPOSING PRICE CONTROLS TO RESTRAIN HEALTHCARE SPENDING AS PREVIOUSLY REPORTED MR MAGAZINER WAS DELEGATED TO RESEARCH PRICE CONTROLS WHICH HE AND OTHERS IN THE ADMINISTRATION THINK WILL BE NECESSARY IN THE EARLY YEARS OF ANY HEALTHCARE REFORM PROGRAM MR MAGAZINER PLANS TO PRESENT THREE OPTIONS TO PRESIDENT CLINTON'S HEALTHCARE TASK FORCE THIS WEEKEND THE NEWS WAS ENOUGH TO SEND SKITTISH INVESTORS ON A SELLING SPREE DRIVING MEDICAL TECHNOLOGY AND HEALTHCARE STOCKS SHARPLY LOWER MEDTRONIC WHICH MAKES PACEMAKERS PLUNGED 4 1/4 TO 71 3/4 US SURGICAL A MAKER OF SURGICAL INSTRUMENTS SLID 2 3/8 TO 58 1/4 AND US HEALTHCARE A PROVIDER OF HEALTHMAINTENANCE PROGRAMS TUMBLED 2 1/4 TO 43 3/4 DRUG STOCKS ALSO LOST GROUND MERCK DROPPED 1 1/8 TO 36 5/8 PFIZER SAGGED 1 5/8 TO 58 3/8 AND SCHERINGPLOUGH EASED 7/8 TO 57 3/8 VOLUME ON THE BIG BOARD WAS MODERATELY HEAVY WITH 237850000 SHARES CHANGING HANDS UP FROM TUESDAY'S 217730000 SHARES DECLINING ISSUES OUTNUMBERED ADVANCERS 1158 TO 736 STOCKS STARTED THE DAY LOWER IN RESPONSE TO THE LABOR DEPARTMENT'S FEBRUARY REPORT ON CONSUMER PRICES WHILE OVERALL CONSUMER PRICES ROSE 03 LAST MONTH THE SOCALLED CORE RATE OF INFLATION WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY COMPONENTS SHOWED AN UNEXPECTEDLY SHARP GAIN OF 05 PEOPLE ARE BEGINNING TO WONDER ABOUT THE INFLATION STORY SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS WHILE THEY ARE NOT CHANGING THEIR BASIC VIEW WITH EACH INFLATION REPORT THERE ARE A FEW MORE QUESTIONS MR SHULMAN SAID IT IS UNCLEAR WHETHER A SECULAR CHANGE IN THE INFLATION RATE IS OCCURRING HE NOTED THAT THE BULK OF THE GAIN IN LAST MONTH'S CORE INFLATION RATE WAS DUE TO HIGHER PRICES FOR WOMEN'S CLOTHING ONE INVESTOR WHO THINKS INFLATION IS LIKELY TO RISE IS RICHARD FONTAINE WHO MANAGES ABOUT 400 MILLION I EXPECT THERE TO BE A SURPRISE ON THE INFLATIONARY FRONT AND YOU CAN KIND OF TELL IT FROM MY PORTFOLIO HE SAID AMONG THE GROUPS MR FONTAINE HAS BEEN LOADING UP ON ARE GOLD STOCKS WHICH BENEFITED FROM YESTERDAY'S CPI REPORT HOMESTAKE MINING EDGED UP 3/8 TO 13 NEWMONT MINING CLIMBED 1 TO 41 3/8 AND BATTLE MOUNTAIN GOLD ADDED 1/8 TO 6 1/2 SOME LAGGING OIL STOCKS CAUGHT FIRE YESTERDAY BRITISH PETROLEUM ROSE 1 1/2 TO 53 5/8 AND ROYAL DUTCH CLIMBED 3/8 TO 86 7/8 CHEVRON JUMPED 1 3/8 TO 79 1/8 AFTER DEAN WITTER REYNOLDS BOOSTED ITS EARNINGS ESTIMATES FOR THE COMPANY ALLSTATE A SUBSIDIARY OF SEARS ROEBUCK FILED WITH THE SECURITIES AND EXCHANGE COMMISSION LATE YESTERDAY FOR A PROPOSED INITIAL PUBLIC OFFERING OF 785 MILLION COMMON SHARES AFTER THE OFFERING SEARS WILL INDIRECTLY OWN 821 OF ALLSTATE COMMON STOCK OR 801 IF OVERALLOTMENT OPTIONS ARE EXERCISED WESTERN DIGITAL WAS QUOTED AT 6 5/8 DOWN 1 1/2 AT 259 PM EST WHEN TRADING IN ITS STOCK WAS HALTED THE DISKDRIVE MAKER SAID IT EXPECTS ITS THIRDQUARTER RESULTS TO BE SIGNIFICANTLY BELOW WALL STREET FORECASTS OF 20 CENTS TO 26 CENTS A SHARE BECAUSE OF PRICING PRESSURES MERRYGOROUND ENTERPRISES JUMPED 2 1/4 TO 17 AFTER IT AGREED TO BUY MELVILLE'S CHESS KING DIVISION TERMS WEREN'T DISCLOSED MELVILLE GAINED 1 1/2 TO 48 3/4 MICRON TECHNOLOGY PLUNGED 4 TO 23 7/8 AND TEXAS INSTRUMENTS FELL 2 3/4 TO 59 5/8 THE SHARES TUMBLED AFTER THE COMMERCE DEPARTMENT DECIDED AGAINST STIFF TARIFFS ON IMPORTS OF SOUTH KOREAN COMPUTER CHIPS CPC INTERNATIONAL SLID 3 5/8 TO 45 5/8 KIDDER PEABODY LOWERED ITS RATING ON THE INTERNATIONAL FOOD PROCESSOR'S STOCK TO HOLD FROM BUY BECAUSE WEAK PERFORMANCE IN SOUTHERN EUROPE IS LIKELY TO DAMP EARNINGS GROWTH GOLDMAN SACHS ALSO CUT ITS RATING TO MARKET PERFORMER FROM BUY SYMS JUMPED 1 1/8 TO 10 3/4 THE OFFPRICE APPAREL STORE CONCERN SAID ITS FOURTHQUARTER PROFIT SWELLED TO 805 MILLION OR 45 CENTS A SHARE FROM 52 MILLION OR 30 CENTS A SHARE A YEAR EARLIER WANG LABORATORIES CLASS B SHARES ADDED 1/4 TO 1/2 THE AMERICAN STOCK EXCHANGE SAID IT WILL DELIST THE CLASS B AND CLASS C COMMON SHARES OF WANG IN LIGHT OF THE COMPANY'S MOVE TO FILE FOR REORGANIZATION TUESDAY THE EXCHANGE SAID MARCH 31 WILL BE THE LAST DAY OF TRADING FOR THE ISSUES BREED TECHNOLOGIES ADVANCED 1 1/8 TO 17 1/4 THE COMPANY CALLED REASONABLE ANALYSTS' ESTIMATES THAT IT WILL EARN 15 CENTS A SHARE IN THE THIRD QUARTER ENDING THIS MONTH PILLOWTEX SOLD 39 MILLION SHARES AT 14 APIECE IN AN INITIAL PUBLIC OFFERING THAT WAS PRICED THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES THE COMPANY WHICH MAKES BEDDING PRODUCTS EXPECTS TO USE PROCEEDS FROM THE OFFERING TO REPAY DEBT GENERAL INSTRUMENT SOLD 10 MILLION COMMON SHARES AT 3050 A SHARE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS THE STOCK WAS OFFERED BY AFFILIATES OF FORSTMANN LITTLE & CO AND CURRENT AND FORMER OFFICERS DIRECTORS AND KEY EMPLOYEES OF GENERAL INSTRUMENT 9303180005 930318 SALOMON TESTS WATERS FOR MUNI BONDS A MARKET IT LED AND ABANDONED IN '87 BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALOMON BROTHERS INC WHICH STUNNED WALL STREET SIX YEARS AGO WHEN IT ABRUPTLY PULLED OUT OF THE MUNICIPALBOND BUSINESS NOW WANTS TO DIP ITS TOES BACK IN BUT IT'S HAVING SOME TROUBLE THE BIG INVESTMENT BANK QUIETLY TRIED TO BE NAMED TO THE TEAM OF SENIOR UNDERWRITERS THAT SELL ABOUT 4 BILLION OF BONDS EACH YEAR FOR NEW YORK CITY ONE OF THE BIGGEST BORROWERS IN THE MUNICIPAL MARKET HOWEVER NEW YORK FAILED TO NAME SALOMON AS ONE OF ITS LEAD UNDERWRITERS YESTERDAY AN OFFICIAL AT SALOMON SAID ITS ATTEMPT TO SECURE A SPOT ON NEW YORK'S UNDERWRITING TEAM IS NOT A SIGN THAT IT'S GETTING BACK INTO THE BUSINESS IT LEFT IN 1987 WHEN IT LAID OFF 200 EMPLOYEES AND ANGERED SEVERAL MUNICIPALITIES THAT HAD TO SCRAMBLE TO FIND NEW MANAGERS FOR THEIR BOND ISSUES NEVERTHELESS WALL STREET IS BUZZING ABOUT SALOMON'S BID TO BECOME AN UNDERWRITER FOR NEW YORK WHICH OTHER FIRMS PERCEIVE AS BEING AN ADMISSION THAT SALOMONS REGRETS THE MOVE OUT OF THE MUNICIPALBOND MARKET THEY KNOW THEY MADE A MISTAKE AND THEY HAVE ADMITTED TO ME THAT THEY KNOW THEY MADE A MISTAKE SAID ROBERT LAMB A PROFESSOR AT NEW YORK UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS AND AUTHOR OF SEVERAL BOOKS ON MUNICIPAL BONDS THE BUSINESS WAS TOUGH FOR A COUPLE OF YEARS BUT THINGS HAVE IMPROVED TREMENDOUSLY GEDALE HOROWITZ A SALOMON SENIOR EXECUTIVE DIRECTOR WHO RAN SALOMON'S MUNICIPALBOND BUSINESS WHEN IT WAS THE LARGEST ON WALL STREET DOESN'T SEE THINGS QUITE THAT WAY HE SAID SALOMON WAS ONLY SEEKING TO HANDLE 300 MILLION OF TAXABLE BONDS THAT NEW YORK PLANS TO SELL PLUS SOME INTERESTRATE SWAPS THE INVESTMENT BANK IS ESPECIALLY INTRIGUED BY A 100 MILLION OFFERING OF BONDS DENOMINATED IN YEN THAT NEW YORK PLANS TO SELL TO JAPANESE INVESTORS IN THE NEXT SEVERAL WEEKS WE LIKE THE YEN BOND OFFERING THIS IS OUR BUSINESS MR HOROWITZ SAID SALOMON HAS A STRONG PRESENCE IN JAPAN NEW YORK CHOSE NIKKO SECURITIES CO TO HANDLE THE SALE STILL SALOMON HAS LEFT OPEN THE POSSIBILITY THAT IT MIGHT ENTER THE BROADER TAXEXEMPT BOND BUSINESS IN THE FUTURE IF YOU ASK ME WHETHER WE HAVE ANY INTENTION AT THE PRESENT TIME TO ENTER THE TAXEXEMPT BOND MARKET THE ANSWER IS NO MR HOROWITZ SAID IF YOU ASK IF THERE IS A POSSIBILITY THAT BY THE YEAR 2000 WE'LL BE BACK IN THE MUNICIPAL MARKET I'D SAY SURE WHEN SALOMON DECIDED TO CLOSE ITS MUNICIPALBOND BUSINESS THE MARKET WAS RAPIDLY CONTRACTING IN REACTION TO THE PASSAGE OF THE 1986 TAX REFORM WHICH SEVERELY RESTRICTED THE TYPE AND AMOUNT OF BONDS THAT CITIES AND STATES COULD SELL THE LAW ALSO REDUCED THE TAX ADVANTAGES OF PURCHASING MUNICIPAL BONDS FOR INSTITUTIONAL INVESTORS SUCH AS COMMERCIAL BANKS AND INSURANCE COMPANIES AT THE SAME TIME GREATER COMPETITION AMONG UNDERWRITERS FOR A SHRINKING SUPPLY OF NEW MUNICIPALBOND ISSUES CAUSED PROFIT MARGINS TO NARROW THIS LED SOME SALOMON EXECUTIVES TO CONCLUDE THAT THE MUNICIPAL BUSINESS WOULD NEVER REBOUND FROM ITS TROUBLED CONDITION BUT OFFICIALS AT OTHER SECURITIES FIRMS SAY THAT SALOMON'S GLOOMY FORECAST TURNED OUT TO BE SHORTSIGHTED ISSUANCE OF NEW MUNICIPAL BONDS FOR EXAMPLE HAS REBOUNDED SHARPLY AND HIT A RECORD 234 BILLION LAST YEAR WALL STREET ANALYSTS EXPECT THE SUPPLY OF NEW BONDS TO CONTINUE AT RELATIVELY HIGH LEVELS THROUGHOUT THE 1990S AS CITIES AND STATES BORROW HEAVY TO REBUILD THEIR CRUMBLING ROADS AND BRIDGES MOREOVER THE NUMBER OF MAJOR UNDERWRITERS IN THE BUSINESS HAS DECLINED INDIVIDUAL INVESTORS AND MUTUAL FUNDS HAVE REPLACED BANKS AND INSURANCE COMPANIES AS BIG BUYERS AND UNDERWRITING FEES WHILE SMALLER THAN IN THE PAST HAVE HELD UP RATHER WELL COMPARED WITH OTHER SECTORS OF THE BOND MARKET FINALLY AS MUNICIPALBOND ISSUERS BEGIN TO USE MORE SOPHISTICATED PRODUCTS THAT COMMAND HIGHER FEES SUCH AS SWAPS AND DERIVATIVES INVESTMENT BANKERS SAY THE PROFIT POTENTIAL IS IMPROVING THE MUNICIPALBOND MARKET HAS CHANGED DRAMATICALLY IN THE PAST EIGHT YEARS SAID DAVID H KOMANSKY EXECUTIVE VICE PRESIDENT OF DEBT MARKETS AT MERRILL LYNCH & CO HE NOTED THAT THE BUSINESS OF SELLING MUNICIPAL BONDS TO MUTUAL FUNDS AND TO INDIVIDUALS IS MORE IMPORTANT FOR BIG INVESTMENT BANKS THAN UNDERWRITING MUNICIPAL SECURITIES THAT HE SAID IS NOW THE MAJOR ATTRACTION OF THE MUNICIPAL BUSINESS WITH MUNICIPAL BONDS ONE OF THE LAST REMAINING TAX SHELTERS FOR INDIVIDUALS AND PRESIDENT CLINTON PLANNING TO RAISE TAXES MR KOMANSKY EXPECTS STRONG DEMAND FOR MUNICIPAL BONDS TO CONTINUE SALOMON'S MR HOROWITZ AGREES FOR FIRMS WITH GOOD INSTITUTIONAL BUSINESS THAT CAN COVER THE BOND FUNDS THE MUNI MARKET CAN BE A PROFITABLE BUSINESS THOUGH THE VAST MAJORITY OF MUNICIPAL BONDS ARE TAXEXEMPT TO INVESTORS A GROWING PERCENTAGE IS TAXABLE THAT'S BECAUSE CONGRESS IN THE 1980S SHARPLY LIMITED THE AMOUNT OF DEBT MUNICIPALITIES COULD ISSUE FOR CERTAIN PRIVATE PURPOSES INCLUDING BONDS USED TO FINANCE CONSTRUCTION OF LOW AND MODERATEINCOME HOUSING LIKE MANY CITIES NEW YORK SELLS TAXABLE BONDS WHICH PAY MUCH HIGHER INTEREST RATES TO FUND THE PROJECTS BECAUSE TAXABLE MUNICIPAL BONDS APPEAL TO THE SAME INVESTORS WHO TRADITIONALLY BUY CORPORATE BONDS SALOMON SAYS ITS MOVE INTO TAXABLE MUNIS DOESN'T REPRESENT A MAJOR SHIFT IN STRATEGY THE FIRM HAS PREVIOUSLY BID AT AUCTION FOR SOME TAXABLE MUNICIPAL NOTES BUT COMPETITORS NOTE THAT SALOMON FEELS COMPELLED TO TRY TO UNDERWRITE THESE BONDS AND HAS TO GET BACK INTO THE MUNI BUSINESS TO DO SO NEW YORK'S NEW UNDERWRITING TEAM WILL BE LED BY LEHMAN BROTHERS INC BEAR STEARNS & CO INC GOLDMAN SACHS & CO MERRILL LYNCH & CO FIRST BOSTON CORP PRUDENTIAL INSURANCE CO OF AMERICA'S PRUDENTIAL SECURITIES INC UNIT AND JP MORGAN & CO IN A FIRST FOR NEW YORK THE CITY NAMED A BLACKOWNED FIRM WR LAZARD & CO AS A SENIOR UNDERWRITER FOR ITS WATER FINANCE AUTHORITY THE OTHER SENIOR MANAGERS FOR THE AUTHORITY ARE PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO UNIT AND PAINEWEBBER GROUP INC'S PAINEWEBBER INC IN AN EFFORT TO EXPAND THE NUMBER OF FIRMS DOING BUSINESS WITH THE CITY NEW YORK APPOINTED SEVERAL OTHER MINORITYOWNED FIRMS TO LEAD MANAGE WHAT THE CITY CALLED SPECIAL PROJECTS 9303180004 930318 INTERNATIONAL BEIJING OFFERS CALMER WORDS ON HONG KONG BY JESSE WONG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG FINANCIAL MARKETS IN HONG KONG BREATHED A COLLECTIVE SIGH OF RELIEF AFTER AN ANTICIPATED TIRADE FROM A BEIJING OFFICIAL PROVED TO BE LESS HARSH THAN EXPECTED HONG KONG HAS BEEN ON EDGE FOR MONTHS AS CHINA AND THE COLONY'S LONDONAPPOINTED GOVERNOR CONTINUE TO WRESTLE OVER HOW MUCH SAY THE PUBLIC WILL HAVE AFTER THE TERRITORY REVERTS TO CHINESE RULE IN 1997 CHINA OBJECTS TO THE GOVERNOR'S PLAN TO BROADEN PUBLIC PARTICIPATION IN LEGISLATIVE ELECTIONS AN ATTEMPT TO START FORMAL SINOBRITISH TALKS BROKE DOWN LAST WEEK AND ON MONDAY CHINESE PREMIER LI PENG WARNED OF UNSPECIFIED CONSEQUENCES FOR HONG KONG IF IT PERSISTED WITH ELECTORAL REFORMS YESTERDAY THE COLONY BRACED FOR A DETAILED ELABORATION OF THE THREATENED CONSEQUENCES FROM LU PING WHO REPORTS TO THE PREMIER AND IS THE OFFICIAL WHO DIRECTS BEIJING'S POLICY ON HONG KONG BUT AT A NEWS CONFERENCE IN THE CHINESE CAPITAL MR LU PROVED SHORT ON THREATS AND LONG ON REASSURANCES THAT CHINA HAS THE COLONY'S BEST INTERESTS AT HEART HOW TO ENSURE AN UNEVENTFUL TRANSITION TO 1997 HOW TO KEEP HONG KONG PROSPEROUS AND STABLE THESE ARE THE PRESSING QUESTIONS WE MUST CONSIDER HE SAID WHAT HE SAID IN FACT WAS THAT THEY WILL DO NOTHING SAID ANDREW FRERIS CHIEF REGIONAL ECONOMIST WITH SALOMON BROTHERS HONG KONG LTD THE HONG KONG STOCK MARKET INITIALLY PLUNGED ON WEDNESDAY BUT AFTER MR LU SPOKE STOCKS BOUNCED BACK AS TRADERS REALIZED HE DIDN'T PLAN TO ADMINISTER ANOTHER ORAL POUNDING TO THE COLONY AT LEAST NOT FOR THE DAY THE KEY HANG SENG INDEX ENDED 2171 POINTS LOWER AT 595833 AFTER LAGGING BY MORE THAN 200 POINTS AT ONE STAGE MR LU SAVED HIS HARSHEST WORDS FOR HONG KONG GOV CHRIS PATTEN WHO HE ACCUSED OF SABOTAGING ATTEMPTS TO NEGOTIATE AN END TO THE CRISIS IN THE HISTORY OF HONG KONG HE SHOULD BE REGARDED AS THE CRIMINAL OF ALL TIME MR LU SAID AS HIS STRONGEST RETALIATORY MEASURE MR LU REPEATED A PREVIOUS THREAT THAT CHINA WOULD REPLACE THE LEGISLATURE PUT INTO PLACE UNDER BRITISH RULE WHEN IT TAKES OVER HONG KONG IN MID1997 THOUGH IT SOUNDS DRASTIC THAT COURSE WOULD BE A MORE MODERATE RETALIATORY MEASURE COMPARED WITH THOSE ADVOCATED BY PROCHINA FIGURES IN HONG KONG SOME OF WHOM HAVE URGED CHINA TO SET UP A SHADOW GOVERNMENT PRIOR TO 1997 THAT WOULD CAUSE FAR MORE DISRUPTION IN THE TERRITORY THAN MR LU'S APPROACH 9303180003 930318 BUSINESS BRIEF PREPACKAGED PLAN FILED BY USG CORP IN BANKRUPTCY COURT CHICAGO USG CORP SAID IT FILED ITS PREPACKAGED BANKRUPTCY PLAN AFTER RECEIVING MORE THAN 95 APPROVAL FROM ALL CREDITOR GROUPS USG THEN LAID OUT PLANS IN SEPTEMBER FOR A PREPACKAGED FILING WHICH REQUIRES THE APPROVAL OF ONLY TWOTHIRDS OF CREDITORS IT MODIFIED THE PLAN TO APPEASE ONE GROUP AND IN JANUARY GOT ALL THE DEBTHOLDER COMMITTEES TO SIGN ON IN PRINCIPLE THAT PLAN FILED YESTERDAY IN DELAWARE'S BANKRUPTCY COURT WOULD TRIM DEBT TO 16 BILLION AND GIVE AN 82 STAKE TO HOLDERS OF USG'S 13 1/4 SENIOR SUBORDINATED DEBENTURES A 15 STAKE TO HOLDERS OF ITS 16 JUNIOR SUBORDINATED PAYINKIND DEBENTURES AND A 3 STAKE TO ITS CURRENT SHAREHOLDERS THE PROCESS OF DELEVERAGING HAS BEEN TIMECONSUMING SAID EUGENE B CONNOLLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER BUT IT IS GRATIFYING TO RECEIVE SUPPORT FOR THE PLAN A PREPACKAGED PLAN ALLOWS THE COMPANY TO MOVE THROUGH BANKRUPTCY COURT FASTER BECAUSE IT ENTERS PROCEEDINGS HAVING ALREADY WON THE AGREEMENT OF MOST CREDITORS USG EXPECTS TO EMERGE AT THE END OF THE SECOND QUARTER THE PLAN IS LIMITED TO THE PARENT HOLDING COMPANY ITS SUBSIDIARIES WILL CONTINUE TO FULFILL ALL SUPPLIER CUSTOMER AND EMPLOYEE OBLIGATIONS USG SAID 9303180002 930318 INTERNATIONAL SECURITY FEARS AMONG ISRAELIS BOLSTER NEW LIKUD CHALLENGER TO RULING PARTY BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV THE CINERAMA HALL IN TEL AVIV HAS THE AIR OF A HIGH SCHOOL PEP RALLY YOUNG VOLUNTEERS WORK THE BLEACHERS HANDING OUT PLASTIC ISRAELI FLAGS BANNERS CALLING FOR VICTORY ARE STRUNG ON THE WALLS SUDDENLY THE DOORS SWING OPEN A CHEER GOES UP AND IN STRIDES BENJAMIN NETANYAHU SURROUNDED BY SCREAMING TEENAGERS AND LOOKING MORE LIKE A STAR QUARTERBACK THAN THE LEADING CANDIDATE TO HEAD THE OPPOSITION LIKUD BLOC LESS THAN A WEEK BEFORE AS MANY AS 250000 LIKUD MEMBERS VOTE IN PRIMARIES FOR A NEW LEADER THE POLLS SHOW SUPPORT FOR MR NETANYAHU 42 YEARS OLD RUNNING ABOVE 50 ENOUGH TO WIN ON THE FIRST ROUND AND AVOID A RUNOFF HIS POPULARITY HAS WEATHERED HIS CONFESSION ON NATIONAL TELEVISION OF MARITAL INFIDELITY AND ALL THE JOKES THAT FOLLOWED AS WELL AS UNPROVEN ACCUSATIONS THAT A RIVAL CAMP TRIED TO BLACKMAIL HIM OVER THE AFFAIR AND MR NETANYAHU HIMSELF IS ALREADY THINKING FURTHER DOWN THE ROAD AT THIS FINAL RALLY IN TEL AVIV THE FOCUS OF HIS JABS ISN'T HIS THREE RIVALS FOR THE TOP SPOT IN THE LIKUD BUT THE MAN WHOSE JOB HE TRULY COVETS PRIME MINISTER YITZHAK RABIN THE RULING LABOR PARTY HE TELLS THE CROWD IS LIKE A TROJAN HORSE THE HORSE WAS PAINTED WITH MR RABIN'S FACE BUT ONCE IT GOT INSIDE THE GATES MR NETANYAHU SAYS OUT JUMPED THE DOVISH WING OF THE PARTY AND TOOK CONTROL OF THE GOVERNMENT SECURITY HAS GONE DOWN AS THE RESULT OF WEAKNESS ORGANIZED TERROR IS INCREASING AND THE GOVERNMENT WON'T DO ANYTHING HE YELLS MOTHERS ARE FRIGHTENED TO SEND THEIR CHILDREN TO SCHOOL PARENTS ARE SCARED TO SEND THEIR CHILDREN TO THE ARMY AND WHAT DOES THE GOVERNMENT DO THE DECISION IS NOT TO DO ANYTHING WE NEED TO CHANGE THIS GOVERNMENT PARLIAMENTARY ELECTIONS AREN'T DUE UNTIL 1996 BUT PART OF MR NETANYAHU'S APPEAL IS THAT HE ASSURES LIKUD VOTERS THAT IF HE'S ELECTED THEY WON'T HAVE TO WAIT THAT LONG TO REGAIN POWER WHICH THE LIKUD LOST IN LAST JUNE'S ELECTIONS AFTER 15 YEARS IN OFFICE BEST KNOWN OUTSIDE ISRAEL AS A MEDIA SPOKESMAN FOR THE HAWKISH LIKUD GOVERNMENT DURING THE MADRID PEACE CONFERENCE AND IRAQ'S SCUD ATTACKS ON ISRAELI CITIES DURING THE GULF WAR MR NETANYAHU'S CAMPAIGN SPEECHES ARE FILLED WITH SNAPPY ONELINERS HIS TENDENCY TO SPEAK IN SOUNDBITES HE CALLED FOR A GUN FOR EVERY CITIZEN IN THE WAKE OF A SERIES OF KNIFE ATTACKS ON JEWISH RESIDENTS HAS STRUCK A RESPONSIVE CHORD AMONG ISRAELIS THE RECENT SURGE IN ATTACKS IN JEWISH CITIES WITHIN ISRAEL'S PRE1967 BORDERS CITIES LIKE TEL AVIV AND AFULA RATHER THAN THOSE IN THE WEST BANK OR THE GAZA STRIP HAS CREATED A FEELING OF HELPLESSNESS AND DESPAIR AMONG ISRAELIS THAT REACHED A CLIMAX THIS WEEK WHEN THE CHIEF OF POLICE URGED CIVILIANS WITH LICENSED WEAPONS TO CARRY THEM AT ALL TIMES BIBI'S APPEAL SAYS ONE LIKUD OFFICIAL IN A RIVAL CAMP REFERRING TO MR NETANYAHU BY HIS NICKNAME IS THAT HE GIVES PEOPLE A FEELING OF CONFIDENCE THAT HE HAS THE SOLUTION AND THAT IT'S ALL VERY SIMPLE THE RABIN GOVERNMENT ISN'T YET IN DANGER OF FALLING THOUGH MR RABIN IS CUTTING SHORT HIS VISIT TO THE US TO RETURN TO ISRAEL IN RESPONSE TO THE GROWING VIOLENCE JUST YESTERDAY JEWISH SETTLERS ATTACKED AN ARAB VILLAGE IN THE OCCUPIED WEST BANK AND SET A GAS STATION AFIRE NEAR WHERE TWO ISRAELIS WERE KILLED THIS WEEK BUT MR NETANYAHU COULD EVENTUALLY POSE A FORMIDABLE THREAT HIS CLAIMS THAT MR RABIN HAS ALREADY DRAWN UP A MAP FOR AN ISRAELI WITHDRAWAL FROM THE GOLAN HEIGHTS FORCED THE PRIME MINISTER'S OFFICE TO ISSUE HEATED DENIALS A RECENT TV TALK SHOW SURVEY SHOWED MOST ISRAELIS PREFER THE PREVIOUS GOVERNMENT WHILE OTHER POLLS SHOW MR NETANYAHU BEATING MR RABIN IF ELECTIONS FOR PRIME MINISTER WERE HELD TODAY BIBI REPRESENTS A NOT SO SIMPLE CHALLENGE TO THE LABOR PARTY WROTE YOEL MARCUS A POLITICAL WRITER FOR THE ISRAELI DAILY HA'ARETZ HE IS ALREADY A DANGEROUS RIVAL TO YITZHAK RABIN UNLIKE THE 71YEAROLD MR RABIN MR NETANYAHU HASN'T HAD TO FIGHT HIS WAY UP A RIGID PARTY HIERARCHY TO THE TOP SO HIS VIEWS ON MANY BURNING ISSUES SUCH AS THE ROLE OF RELIGION IN PUBLIC LIFE OR SPECIFIC ECONOMIC POLICIES ARE LARGELY UNKNOWN HE IS FOLLOWING A TRADITIONAL AMERICAN WAY OF GETTING ELECTED SAYS DAVID BARILLAN EXECUTIVE EDITOR OF THE JERUSALEM POST HE KEEPS IT AS VAGUE AS POSSIBLE AND AVOIDS IDEOLOGICAL EXPRESSIONS FOR THAT REASON HEALTH MINISTER HAIM RIMON OF THE LABOR PARTY WAS QUOTED IN AN ISRAELI NEWSPAPER AS SAYING THAT LABOR ACTUALLY PREFERS THAT MR NETANYAHU RATHER THAN ONE OF HIS RIVALS WIN THE LIKUD PRIMARY MR NETANYAHU THE MINISTER ARGUED IS UNTESTED AS A LEADER VULNERABLE TO CHARGES ABOUT HIS CHARACTER AND LACKS POLITICAL DURABILITY 9303180001 930318 YOUR MONEY MATTERS FLORIDA VOTE FAILS TO LIFT CLOUD OVER COPS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL MUNICIPAL INVESTORS BREATHED A SIGH OF RELIEF AFTER RESIDENTS OF A CENTRAL FLORIDA COUNTY VOTED BY A SLIM MARGIN TO CONTINUE MAKING PAYMENTS ON A POPULAR TYPE OF TAXEXEMPT FINANCING USED IN CONSTRUCTING A LOCAL GOVERNMENT BUILDING MUNICIPALFINANCE SPECIALISTS FEARED THAT A NEGATIVE VOTE IN BREVARD COUNTY FLA MIGHT ENCOURAGE OTHER MUNICIPALITIES STRAPPED BY HARD ECONOMIC TIMES TO STOP MAKING PAYMENTS ON SOCALLED CERTIFICATES OF PARTICIPATION OR COPS BUT WHILE THE FLORIDA VOTE AVERTED A SHOWDOWN OVER THE 239 MILLION OF BREVARD COUNTY SECURITIES INVESTMENT PROFESSIONALS SAY IT FAILED TO LIFT THE CLOUD OVER THE 65 BILLION COP MARKET THE CLOSENESS OF THE VOTE AND THE FACT THE QUESTION WAS ON THE BALLOT AT ALL RAISE SERIOUS QUESTIONS FOR INVESTORS WHO HOLD COPS OR PLAN TO BUY THESE NEW TYPES OF TAXEXEMPT SECURITIES TO GET HIGHER YIELDS MUNICIPAL SPECIALISTS SAY THE VOTE REVEALED THE REAL VULNERABILITY OF THESE INSTRUMENTS ACCORDING TO RICHARD LEHMANN PRESIDENT OF THE BOND INVESTORS ASSOCIATION MIAMI LAKES FLA THEY CAN BE CANCELED AND THEY HAVE A HIGH POLITICAL RISK THAT ISN'T QUANTIFIABLE BY A RATING AGENCY STATES COUNTIES CITIES AND SPECIAL DISTRICTS ACROSS THE US HAVE ISSUED COPS TO FINANCE EVERYTHING FROM COMPUTERS AND POLICE CARS TO SCHOOLS AND GOVERNMENT CENTERS BUT THE BREVARD SITUATION IS A PRIME EXAMPLE OF HOW COP PAYMENTS CAN BE AFFECTED BY POLITICS INVESTMENT PROS SAY THE BREVARD COUNTY VOTE CONCERNED PAYMENTS ON COPS TO FINANCE A CONTROVERSIAL GOVERNMENTOPERATIONS CENTER IN VIERA FLA WHICH OPPONENTS DUBBED THE PALACE IN THE COW PASTURE RESIDENTS APPROVED THE CONTINUATION OF LEASE PAYMENTS TO COP INVESTORS BY A 51 TO 48 MARGIN OR ABOUT 3000 VOTES IN TUESDAY'S ELECTION WE WILL CONTINUE TO STAY IN THE CENTER AND MAKE THE PAYMENTS TO COP INVESTORS SAID KAREN ANDREAS CHAIRWOMAN OF THE COUNTY COMMISSION THE NARROW MARGIN OF VICTORY CAME ONLY AFTER AN UNPRECEDENTED 373975 POLITICAL ADVERTISING CAMPAIGN BY MUNICIPAL BOND INVESTORS ASSURANCE CORP ARMONK NY THE NATION'S LARGEST INSURER OF MUNICIPAL BONDS MBIA AS THE INSURER OF BREVARD COUNTY COPS WOULD HAVE HAD TO PAY INVESTORS THEIR PRINCIPAL AND INTEREST IF THE COUNTY HAD DECIDED TO VACATE THE GOVERNMENTOPERATIONS CENTER MICHAEL BALLINGER A VICE PRESIDENT OF MBIA SAYS THE COMPANY FELT VOTERS NEEDED TO BE EDUCATED ABOUT COSTS ASSOCIATED WITH ABANDONING THE CENTER AND POSSIBLE IMPACT ON THE COUNTY'S FUTURE DEBT ISSUES MANY OPPONENTS OF THE GOVERNMENT CENTER ARE STILL ANGRY THEY SWAMPED THE COUNTY WITH RADIO ADS POSTERS AND THEY USED LIES DECEPTION AND FEAR SAYS MICHAEL BUSICK A MEMBER OF OPERATION FAIRNESS A GROUP OPPOSING THE CENTER THEY OUTSPENT US 60 TO 1 WE DON'T HAVE MUCH RECOURSE NOW BUT THE RESENTMENT AND BITTERNESS WON'T GO AWAY BOND RATING AGENCIES WERE UNHAPPY THAT BREVARD COUNTY HAD EVEN PLACED THE QUESTION OF CONTINUING THE PAYMENTS ON THE BALLOT MOODY'S INVESTORS SERVICES INC SAID YESTERDAY THAT THE DECISION RAISES SERIOUS QUESTIONS ABOUT BREVARD COUNTY'S WILLINGNESS TO HONOR ITS OBLIGATIONS THOUGH BREVARD COUNTY INVESTORS WERE NEVER IN DANGER OF LOSING THEIR MONEY BECAUSE THE COPS WERE INSURED THE CASE POINTS UP A LESSON TO MUNICIPAL INVESTORS WHO TRY TO GET MORE YIELD IN A PERIOD OF LOW INTEREST RATES PROS SAY THE SPREADS BETWEEN INTEREST RATES ON COPS AND OTHER TYPES OF MUNICIPAL BONDS AREN'T LARGE ENOUGH TO COMPENSATE FOR THE ADDED RISK SAYS SUSAN G PEABODY MANAGER OF ALLIANCE CAPITAL MANAGEMENT CORP'S MUNICIPAL BOND GROUP AT TIMES COP YIELDS HAVE BEEN JUST A QUARTER TO A HALF A PERCENTAGE POINT HIGHER THAN YIELDS ON GENERAL OBLIGATION MUNICIPAL BONDS OR MUNICIPAL REVENUE BONDS COPS ARE COMPLICATED STRUCTURES SAYS MS PEABODY THEY AREN'T TECHNICALLY CONSIDERED LONGTERM DEBT AND INSTEAD ARE SECURED BY LEASES IN WHICH THE ISSUER AGREES TO MAKE ANNUAL APPROPRIATIONS FOR REPAYMENT IN OTHER WORDS SAYS ZANE B MANN PUBLISHER OF THE CALIFORNIA MUNICIPAL BOND ADVISOR A PALM SPRINGS CALIF NEWSLETTER THE ISSUER'S COMMITMENT TO THE ISSUE MUST BE RENEWED EVERY YEAR THE COMPLEXITY MAKES IT JUST TOO HARD FOR INDIVIDUALS TO PROPERLY ANALYZE ALL THE THINGS THAT MIGHT GO WRONG WITH A COP INVESTMENT PROFESSIONALS SAY YOU HAVE TO BE VERY SELECTIVE AND SCRUTINIZE CAREFULLY WHAT THE PROCEEDS ARE GOING TO BE USED FOR SAYS MR MANN MAKE SURE THEY FINANCE SOMETHING ABSOLUTELY ESSENTIAL LIKE A JAIL OR A SCHOOL EVERY COP YOU INVEST IN SHOULD BE SUFFICIENTLY IMPORTANT THAT A NEW GROUP OF ELECTED OFFICIALS WOULD DEEM IT POLITICALLY UNWISE NOT TO RENEW THE LEASE HE SAYS A NEW GOVERNMENT OPERATIONS CENTER WOULD SEEM TO BE ESSENTIAL BUT IN THE BREVARD SITUATION SEVERAL MEMBERS OF THE FORMER COUNTY COMMISSION WHO APPROVED THE BUILDING OF THE CENTER WERE DEFEATED IN AN ELECTION LAST YEAR MANY LOCAL RESIDENTS DIDN'T LIKE DRIVING TO THE CENTER AND THE NEWLY ELECTED COMMISSIONERS PUT THE COPS PAYMENTS TO A VOTE ALTHOUGH INVESTORS TOOK SOME COMFORT IN THE FACT THAT THE BREVARD COPS WERE INSURED THE INSURANCE MIGHT NOT HAVE SOLVED ALL THEIR PROBLEMS IF THE VOTE HAD GONE AGAINST CONTINUING THE PAYMENTS MUNICIPAL ATTORNEYS SAY A 1988 INTERNAL REVENUE SERVICE LETTER RULING IN A SIMILAR CASE COULD MEAN THAT IF THE COUNTY REFUSED TO HONOR ITS LEASE PAYMENTS INTEREST AND PRINCIPAL PAYMENTS TO INVESTORS FROM AN INSURER MIGHT NOT BE CONSIDERED TAXFREE EVEN IF INVESTORS SOLVED THE CREDIT RISK HOW WOULD THEY KNOW ABOUT TAXABILITY RISK SAYS MS PEABODY THE TAXABILITY ISSUE STILL HASN'T BEEN RESOLVED SAYS RICHARD A CICCARONE DIRECTOR OF TAXEXEMPT FIXEDINCOME RESEARCH FOR KEMPER SECURITIES INC MR LEHMANN WHO IS ALSO A NEWSLETTER EDITOR SAYS THIS IS A BAD TIME TO BUY COPS IN ANY EVENT WE'RE PROBABLY AT THE BOTTOM OF THE INTEREST RATE CYCLE HE SAYS AS INTEREST RATES GO UP SPREADS BETWEEN QUALITY AND WEAKER ISSUES WIDEN WEAKER ISSUES LIKE COPS DEPRECIATE A LOT FASTER THAN HIGHERQUALITY ISSUES WHEN INTEREST RATES RISE IT'S NOT THE TIME TO STRETCH FOR YIELDS 9303180099 930226 BOARD OF CONTRIBUTORS CLINTON'S CONTINUING CAMPAIGN BY ARTHUR SCHLESINGER JR A DELICATE SENSE OF PROPRIETY SEEMS TO HAVE RECENTLY SETTLED OVER THE AMERICAN PRESS PUNDITS WRITE DISAPPROVINGLY THAT THE NEW PRESIDENT APPEARS TO BE CONDUCTING A PERMANENT CAMPAIGN WHEN THEY ASK WILL HE STOP ELECTIONEERING AND START GOVERNING POLITICAL OPPONENTS ACCUSE HIM OF PUTTING OUT PROPAGANDA IN SUPPORT OF HIS ECONOMIC PROGRAM WHEN THEY ASK WILL BILL CLINTON BEGIN TO ACT PRESIDENTIAL INSOFAR AS SUCH POINTS ARE NOT MADE CYNICALLY THEY SUGGEST A SAD MISUNDERSTANDING OF THE DEMOCRATIC PROCESS FOR DEMOCRACY IS A SYSTEM BASED ON DEBATE PERSUASION AND CONSENT AND POLITICS IN A DEMOCRACY IS ULTIMATELY AN EDUCATIONAL ENTERPRISE AN EFFORT TO CHANGE PEOPLE'S MINDS THE NOTION THAT ONCE ELECTED A PRESIDENT SHOULD RENOUNCE THE HUSTINGS AND TAKE THE VEIL RUNS CONTRARY TO THE WHOLE PURPOSE OF DEMOCRACY THIS PROPOSITION IS SO ELEMENTARY THAT IT WOULD HARDLY BE WORTH RESTATING EXCEPT THAT ONE RUNS INTO SO MANY PEOPLE THESE DAYS WHO AFFECT TO DEPLORE PRESIDENT CLINTON'S PERMANENT CAMPAIGN HAVE THESE CRITICS FORGOTTEN THAT GREAT PRESIDENTS OF THE PAST ALWAYS TOOK THEIR CASE TO THE PEOPLE RECALL JACKSON'S VETO MESSAGE ON THE RECHARTER OF THE SECOND BANK OF THE UNITED STATES OR LINCOLN'S WARTIME SPEECHES OR THEODORE ROOSEVELT'S BULLY PULPIT OR WILSON'S SPEAKING TOUR IN SUPPORT OF THE LEAGUE OF NATIONS OR FDR'S FIRESIDE CHATS OR RONALD REAGAN'S MELLIFLUOUS ADDRESSES WHAT CAN POSSIBLY BE WRONG WITH A PRESIDENT EXPLAINING HIS POLICIES TO THE VOTERS AND SEEKING THEIR SUPPORT WHY DOES THIS BECOME PROPAGANDA AND A PERMANENT CAMPAIGN WHEN UNDERTAKEN BY MR CLINTON ONE CAN ARGUE INDEED THAT IN A DEMOCRACY LEADERS HAVE NO MORE SOLEMN OBLIGATION THAN TO JUSTIFY THEIR POLICIES TO THE ELECTORATE AS THE DECLARATION OF INDEPENDENCE CLASSICALLY PUT IT A DECENT RESPECT TO THE OPINIONS OF MANKIND REQUIRES THAT LEADERS SHOULD DECLARE THE CAUSES THAT IMPEL THEM TO ACTION PRESIDENT CLINTON HAS BEEN DOING THIS EFFECTIVELY IN THE PAST FEW DAYS HE HAS BROKEN THE TABOO THAT HAS LONG BANNED THE TAX QUESTION FROM PUBLIC DISCUSSION AND HE HAS STIRRED INTO LIFE A DEBATE FROM WHICH THE REPUBLIC COULD HAVE GREATLY BENEFITED HAD IT TAKEN PLACE A DECADE EARLIER WHY DO THE PUNDITS FIND THIS SO REPREHENSIBLE NOR IS IT ONLY THE VOTERS WHO ARE EDUCATED WHEN A PRESIDENT GOES IN FOR WHAT THE PUNDITS CONDEMN AS THE PERMANENT CAMPAIGN EXPOSURE TO THE VOTERS ALSO EDUCATES PRESIDENTS THIS IS ALL THE MORE IMPORTANT IN MODERN TIMES WHEN PRESIDENTS ARE ISOLATED FROM REALITY BY SWOLLEN WHITE HOUSE STAFFS PROTECTIVE SECRET SERVICE AGENTS AND CLAMOROUS POLITICIANS SOME PRESIDENTS PASSIVELY ACCEPT THE CORDON THAT CUTS THEM OFF FROM THE PEOPLE BUT MR CLINTON IS PLAINLY A GREGARIOUS TYPE WHO REJOICES IN HUMAN CONTACT NOW IT IS TRUE ENOUGH THAT THE AURA OF THE OFFICE MAKES ALL PRESIDENTS SOMEWHAT INTIMIDATING AND TURNS TOO MANY PEOPLE THEY MEET INTO DEFERENTIAL YESMEN YET A RECEPTIVE PRESIDENT CAN STILL PICK UP SIGNALS OF DOUBT AND DISCONTENT AND ONE JUDGES THAT MR CLINTON'S RECEPTIVITY IS CONSIDERABLE MEN MOVING ONLY IN AN OFFICIAL CIRCLE LINCOLN ONCE REMARKED ARE APT TO BECOME MERELY OFFICIAL NOT TO SAY ARBITRARY IN THEIR IDEAS THAT IS WHY DESPITE THE TERRIBLE DEMANDS ON HIS TIME LINCOLN VALUED HIS TWICEAWEEK WHITE HOUSE RECEPTIONS WHERE ORDINARY CITIZENS DROPPED BY SEIZED HIS ELBOW EXPOUNDED THEIR IDEAS AND AIRED THEIR GRIEVANCES I CALL THESE RECEPTIONS MY PUBLICOPINION BATHS LINCOLN SAID AND THOUGH THEY MAY NOT BE PLEASANT IN ALL PARTICULARS THE EFFECT AS A WHOLE IS RENOVATING AND INVIGORATING TO MY PERCEPTIONS OF RESPONSIBILITY AND DUTY ONE OF THE LESS PLEASANT PARTS NO DOUBT WAS THE TENDENCY OF PEOPLE TO ASK WHY A PRESIDENT HAS NOT CARRIED OUT HIS CAMPAIGN PROMISES PUNDITS AND POLITICAL OPPONENTS TODAY CIRCULATE THE IDEA THAT THINGS SAID IN CAMPAIGNS ARE SACRED PLEDGES TO THE ELECTORATE AND THAT ABANDONING THEM IN CHANGED CIRCUMSTANCES IS A MONSTROUS BETRAYAL MR CLINTON'S CAMPAIGN SPEECHES ARE RANSACKED TO FIND INSTANCES WHERE HE SAID ONE THING THEN AND SAYS ANOTHER THING NOW IT IS ALWAYS USEFUL TO REMIND POLITICIANS OF THEIR FALLIBILITY BUT IT IS FOOLISH TO PUT TOO MUCH WEIGHT ON POLITICIANS' CHANGING THEIR MINDS IT SEEMS TO ME THAT EVEN PUNDITS CHANGE THEIR MINDS FROM TIME TO TIME I WAS NOT ONE OF THOSE WHO EVER REPROACHED PRESIDENT BUSH FOR DEPARTING FROM HIS READ MY LIPS NO NEW TAXES LITANY IN FACT DROPPING THAT PLEDGE SEEMED TO ME ONE OF THE MOST SENSIBLE THINGS HE DID AS PRESIDENT WHAT IS THE GREAT VIRTUE IN STICKING TO BAD POLICIES EVEN IF YOU ONCE SAID YOU FAVORED THEM PROBABLY THE WISEST THING PRESIDENT REAGAN EVER SAID WAS PRESIDENTS NEVER SAY NEVER THOUGH FRANKLIN ROOSEVELT CONTRARY TO POPULAR MYTH DID NOT MAKE BUDGETBALANCING A MAJOR THEME IN HIS 1932 CAMPAIGN HE DID GIVE A SPEECH IN PITTSBURGH IN WHICH HE DENOUNCED EXTRAVAGANT GOVERNMENT SPENDING AND PROMISED A REDUCTION IN FEDERAL EXPENDITURES IN 1936 FDR DECIDED TO OPEN HIS CAMPAIGN IN PITTSBURGH AND ASKED JUDGE SAMUEL ROSENMAN TO PREPARE A DRAFT EXPLAINING AWAY HIS SPEECH OF FOUR YEARS BEFORE AFTER TAKING A FRESH LOOK AT THE SPEECH JUDGE ROSENMAN TOLD FDR THAT HE HAD FOUND THE ONLY KIND OF EXPLANATION THAT COULD BE MADE ROOSEVELT SAID TO HIM HOPEFULLY FINE WHAT SORT OF AN EXPLANATION WOULD YOU MAKE JUDGE ROSENMAN SAID MR PRESIDENT THE ONLY THING YOU CAN SAY ABOUT THE 1932 SPEECH IS TO DENY CATEGORICALLY THAT YOU EVER MADE IT CANDIDATES SAY ALL SORTS OF THINGS IN THE HEAT OF A CAMPAIGN WENDELL WILLKIE RUNNING FOR PRESIDENT IN 1940 UTTERED DRASTIC PROPHECIES OF THE HORRIBLE FATE THAT WOULD BEFALL THE COUNTRY IF ROOSEVELT WERE REELECTED A THIRD ROOSEVELT TERM WILLKIE SAID WOULD MEAN US ENTRY INTO THE EUROPEAN WAR BY APRIL 1941 FOUR MORE YEARS OF ROOSEVELT WOULD MEAN THE END OF OUR DEMOCRATIC SYSTEM A FEW MONTHS AFTER THE ELECTION WILLKIE CAME BEFORE THE SENATE FOREIGN RELATIONS COMMITTEE TO TESTIFY IN SUPPORT OF FDR'S LENDLEASE BILL SEN GERALD NYE A FERVENT ISOLATIONIST READ WILLKIE QUOTATIONS FROM HIS ATTACKS ON THE ROOSEVELT POLICY AND MADE MUCH OF THE CONTRADICTIONS BETWEEN WILLKIE'S CAMPAIGN IN 1940 AND HIS TESTIMONY IN 1941 WILLKIE WAVED NYE'S CHARGES AWAY THOSE EARLIER REMARKS HE SAID WERE JUST A BIT OF CAMPAIGN ORATORY MOST AMERICANS IN 1941 READILY SYMPATHIZED WITH WILLKIE VOTERS ARE NOT FOOLS THEY RECOGNIZE CAMPAIGN ORATORY FOR WHAT IT IS NOT AS A SACRED PLEDGE TO BE OBSERVED LITERALLY AND THROUGH HELL AND HIGH WATER BUT AS AN APPEAL OFTEN DEMAGOGIC FOR VOTES AS EXAGGERATED EXPRESSIONS OF WHAT THE CANDIDATES MAY FEAR OR HOPE AS INDICATIONS OF THE DIRECTION IN WHICH THE CANDIDATE WOULD LIKE TO LEAD THE COUNTRY DEPARTING FROM CAMPAIGN ORATORY IS AT WORST A VENIAL SIN AND AT BEST AN INTELLIGENT ADAPTATION TO A SITUATION THAT MAY ASSUME DIFFERENT ASPECTS IN LESS FRENZIED MOMENTS ONE TRUSTS THAT PRESIDENT CLINTON WILL NOT LET THE PUNDITS WITH THEIR AGITATION OVER CAMPAIGN PROMISES AND THEIR HANDWRINGING ABOUT PERMANENT CAMPAIGNS DISCOURAGE HIM FROM CARRYING HIS CASE TO THE PEOPLE FOR THAT AFTER ALL IS WHAT DEMOCRACY IS ALL ABOUT AND PUBLICOPINION BATHS ARE EXCELLENT THINGS FOR PRESIDENTS ONE MUST HOPE THAT MR CLINTON WILL NOT STOP TAKING THEM MR SCHLESINGER IS ALBERT SCHWEITZER PROFESSOR OF THE HUMANITIES AT THE CITY UNIVERSITY OF NEW YORK AND A WINNER OF PULITZER PRIZES IN HISTORY AND BIOGRAPHY SEE RELATED LETTERS LETTERS TO THE EDITOR THOSE WERE LIES AND THAT'S THE TRUTH WSJ MARCH 17 1993 9302260088 9303180120 930129 FATHER OF ACCOUNTING IS A BIT OF A STRANGER TO HIS OWN PROGENY LUCA PACIOLI'S SEMINAL WORK GETS A PROMOTIONAL BOOST A 1994 BOOKKEEPING FEST BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL DOCTORS HAVE HIPPOCRATES AND PHILOSOPHERS HAVE PLATO BUT WHO IS THE FATHER OF ACCOUNTING KNOWING THAT ACCOUNTANTS HAVE LONG HAD INFERIORITY COMPLEXES TWO SEATTLE UNIVERSITY PROFESSORS HAVE DECIDED THAT THE PROFESSION SHOULD HAVE A FATHER AND THAT HE SHOULD BE LUCA PACIOLI BUT THEIR ANOINTING OF THE RENAISSANCE SCHOLAR OCCASIONS AN IDENTITY CRISIS HARDLY ANYONE ACCOUNTANTS INCLUDED HAS EVER HEARD OF PACIOLI PRONOUNCED POTCHEEOHLEE LUCA WHO ASKS STEPHEN I GILMAN A CERTIFIED PUBLIC ACCOUNTANT AND VICE PRESIDENT OF A MARINE INSURANCE COMPANY IN NEW YORK MR GILMAN HAS BEEN AN ACCOUNTANT FOR 38 YEARS THE NAME HE SAYS IS A MYSTERY TO ME EVEN JOHN HUNNICUTT THE GROUP VICE PRESIDENT FOR GOVERNMENTAL AFFAIRS OF THE 300000MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS IS AMONG THE INOGNOSCENTI ABOUT LUCA THE NAME JUST DOESN'T RING A BELL HE SAYS BUT LUCA PACIOLI'S NAMERECOGNITION PROBLEM HASN'T STOPPED ACCOUNTING PROFS WILLIAM WEIS AND DAVID TINIUS THEY ARE PLANNING A BIG CELEBRATION NEXT YEAR IN SANSEPOLCRO ITALY THE BIRTHPLACE OF PACIOLI THE OCCASION THE 500TH ANNIVERSARY OF THE PUBLICATION OF HIS SEMINAL WORK ON DOUBLEENTRY BOOKKEEPING THE PROFESSORS ARE PULLING OUT ALL THE STOPS THEY HAVE PRODUCED A COSTLY VIDEO ON PACIOLI TITLED UNSUNG HERO IN WHICH MESSRS WEIS AND TINIUS THEMSELVES PLAY CHARACTERS IN HIS LIFE STORY TO KEEP EXPENSES DOWN THEY SAY THEY HAVE ASKED SOME OF SANSEPOLCRO'S 20000ODD RESIDENTS TO COMPETE IN RENAISSANCE COSTUMES WITH CROSSBOW AND ACROBATIC FLAGTOSSING AT A FETE NEXT YEAR IN LATE MAY OR EARLY JUNE A CARRARA MARBLE STATUE OF PACIOLI IS TO BE PERMANENTLY INSTALLED IN THE TOWN SQUARE MESSRS WEIS AND TINIUS DREAMED UP THE PACIOLI QUINCENTENNIAL IN 1986 ON A SKI TRIP TO AUSTRIA THINGS WERE SORT OF DULL AND WE WERE GOOFING AROUND SO WE DECIDED TO ZIP OVER TO ITALY THERE THEY DECIDED THAT A PACIOLI FETE COULD BE FUN AND GET SOME PRESTIGE FOR THE PROFESSION WHICH PROF TINIUS SAYS HAS A TERRIBLE IMAGE PROF WEIS RECALLS THAT THE PAIR AT FIRST DISCUSSED SUCH HAREBRAINED EVENTS AS BOOKJUGGLING AND TUGS OF WAR BETWEEN PERSONNEL FROM DIFFERENT BIG ACCOUNTING FIRMS HE ADDS BUT WE FINALLY GOT SERIOUS THE PAIR PERSUADED FOUR OF THE SIX BIGGEST ACCOUNTING FIRMS AMONG OTHERS TO COUGH UP 125000 TO MAKE THE 27MINUTE VIDEO THEY WERE ALSO GOING TO COMMISSION A FORMAL PORTRAIT OF PACIOLI IN HOPES OF PROMOTING IT ONTO A US COMMEMORATIVE STAMP BUT THE POSTAL SERVICE TURNED THEM DOWN PROF TINIUS SAYS BECAUSE A COMMEMORATIVE STAMP CELEBRATING THE 100TH ANNIVERSARY OF ACCOUNTING IN THE US THAT WAS ISSUED IN 1987 DIDN'T SELL VERY WELL THE ANNIVERSARY STAMP PICTURING A QUILL PEN AND LEDGER WASN'T VERY EXCITING HE ADDS IN THE VIDEO THE NAME PACIOLI IS LINKED WITH FAMOUS ARTISTS WRITERS AND POLITICAL FIGURES OF HIS DAY THEY INCLUDE POPE SIXTUS IV THE DUKE OF URBINO AND RENOWNED RENAISSANCE PAINTER PIERO DELLA FRANCESCA WHO PUT SANSEPOLCRO ON THE MAP IN THE RUGGED APENNINE MOUNTAINS 60 MILES SOUTHEAST OF FLORENCE FIVE CENTURIES AGO PACIOLI PUBLISHED SUMMA DE ARITHMETICA GEOMETRIA PROPORTIONI ET PROPORTIONALITA IT CONTAINED A SLENDER TRACT FOR MERCHANTS ON DOUBLEENTRY BOOKKEEPING WHICH HAD BEEN IN WIDE USE IN VENICE FOR YEARS BECAUSE OF THAT SOME ACCOUNTING HISTORIANS INCLUDING PROFS WEIS AND TINIUS CREDIT PACIOLI WITH CODIFYING ACCOUNTING PRINCIPLES FOR THE FIRST TIME THAT WOULD SEEM TO ESTABLISH PATERNITY BUT OTHERS ARE SKEPTICAL AND EVEN GO SO FAR AS TO QUESTION PACIOLI'S LINKS TO LUMINARIES OF HIS DAY IT'S HARD TO BELIEVE THAT PACIOLI KNEW ALL THE FAMOUS PEOPLE ATTRIBUTED TO HIS CIRCLE SAYS RICHARD VANGERMEERSCH AN ACCOUNTING PROFESSOR AT THE UNIVERSITY OF RHODE ISLAND AND FORMER PRESIDENT OF THE ACADEMY OF ACCOUNTING HISTORIANS SINCE HIS LIFE HAS BEEN RECREATED FROM SCANTY REFERENCES OF THAT DAY SOME HISTORIANS LIKE MYSELF FEEL THAT SOME TALES ABOUT HIS ACQUAINTANCES ARE APOCRYPHAL PROF VANGERMEERSCH SAYS THE ORIGINS OF DOUBLEENTRY BOOKKEEPING ARE OPEN TO QUESTION IF YOU'RE CREDITING PEOPLE OF PAST CENTURIES FOR CONTRIBUTIONS TO ACCOUNTING YOU SHOULD INCLUDE LEONARDO OF PISA WHO BROUGHT ARABIC NUMERALS TO THE WEST JAMES PEELE WHO INITIATED JOURNALENTRY SYSTEMS AND EMILE GARCKE AND JM FELLS WHO APPLIED ACCOUNTING TO FACTORY USE HE SAYS ALL THESE MEN HAVE ANOTHER THING IN COMMON HE ADDS THEY ARE JUST AS OBSCURE AS LUCA PACIOLI PROFS WEIS AND TINIUS CONCEDE THAT PACIOLI'S FAME IS TENUOUS EVEN IN SANSEPOLCRO RESIDENTS THERE CARE A LOT MORE ABOUT PIERO DELLA FRANCESCA ADMITS PROF WEIS UNTIL NOW PACIOLI HASN'T BEEN A BIG DEAL PROF TINIUS INSISTS THAT THE TRIBUTE TO PACIOLI IS DESERVED BECAUSE HIS SUMMA CONTAINED THE FIRST COMPLETE TEXTBOOK ON ACCOUNTING THE OTHER REASON IS HIS FANCY FRIENDS DELLA FRANCESCA AND LEONARDO DA VINCI IMAGINE THAT WHO ILLUSTRATED PACIOLI'S WORK ON PROPORTION THE CENTRAL MESSAGE FOR TODAY'S ACCOUNTANTS IS THAT A THINKER OF PACIOLI'S STATURE WHO HUNG AROUND WITH LEONARDO FOR YEARS SAW ACCOUNTING AS IMPORTANT SAYS PROF TINIUS THIS LIFTS THE INTELLECTUAL ROOTS OF ACCOUNTING OFF OF BOB CRATCHIT'S DUSTY DESK AND DEPOSITS THEM IN THE FERTILE INTELLECTUAL MILIEU OF THE ITALIAN RENAISSANCE PACIOLI HELPS ACCOUNTANTS BE LESS APOLOGETIC ABOUT THEIR WORK HE ADDS TO HELP SPUR INTEREST IN THE PACIOLI QUINCENTENNIAL PROFS WEIS AND TINIUS HAVE JOINED FORCES IN SANSEPOLCRO WITH A LOCAL SHOWMAN GIUSEPPE DEL BARNA MR DEL BARNA HEADS A TROUPE OF ACROBATS IN HISTORICAL GARB WHO TOSS BIG FLAGS IN THE AIR AT MEDIEVAL FESTIVALS IN OLD CASTLES THE PROFESSORS HOPE THE PERFORMERS WHO CALL THEMSELVES GRUPPO SBANDIERATORI WILL HELP ATTRACT SEVERAL HUNDRED ACCOUNTANTS FROM AROUND THE WORLD TO ATTEND THE 1994 EVENTS JUDGING FROM RESPONSE TO THE PRELIMINARIES THE PACIOLI FEST MAY BE A TOUGH SELL A PREVIEW TOUR OF SANSEPOLCRO LAST SEPTEMBER WAS A DUD ONLY A DOZEN ACCOUNTANTS SIGNED UP SO IT WAS CANCELED THE TIMING JUST WASN'T GOOD AS COLLEGE SEMESTERS HAD ALREADY BEGUN BUT WE'RE MUCH MORE SANGUINE ABOUT THE REAL THING NEXT YEAR SAYS PROF TINIUS IF THE CURRENT STATE OF KNOWLEDGE AMONG ACCOUNTANTS ABOUT PACIOLI IS ANY PORTENT THE REAL THING MAY FLOP TOO EVEN EUGENE FLEGM GENERAL AUDITOR OF GENERAL MOTORS CORP AND A MEMBER OF THE QUINCENTENNIAL COMMITTEE CONCEDES THE GENERAL STATE OF IGNORANCE I SHOWED THE PACIOLI VIDEO TO ABOUT 30 ACCOUNTANTS AT MY COMPANY AND ONLY TWO OR THREE HAD EVER HEARD OF HIM HE SAYS UNIVERSITY OF RHODE ISLAND PROF VANGERMEERSCH RECALLS THE TEPID REACTION OF 25 MEMBERS OF BETA ALPHA PSI THE ACCOUNTING FRATERNITY TO THE VIDEO WHEN IT WAS SHOWN ON CAMPUS IN KINGSTON THERE WERE LOTS OF YAWNS AND SHUFFLING FEET HE RECALLS IT'S HARD TO CONVINCE ACCOUNTING STUDENTS THEY HAVE FAMOUS FOREBEARS EVEN IN LITERATURE SAYS PROF VANGERMEERSCH THE ONLY FAMOUS ACCOUNTANT WAS DANIEL DEFOE WHO WROTE ROBINSON CRUSOE UNFORTUNATELY DEFOE WAS A TERRIBLE BUSINESSMAN AND FAILED IN A SERIES OF VENTURES THE PROFESSOR OBSERVES EVEN AS A DISSENTER AND PAMPHLETEER HE WAS TARRED AND FEATHERED BY THE PUBLIC SEE RELATED LETTERS LETTERS TO THE EDITOR THE COSMIC BEAUTY OF BOOKKEEPING WSJ MARCH 17 1993 9301290029 9303170158 930317 WHO'S NEWS ENGINEERED SUPPORT SYSTEMS INC ENGINEERED SUPPORT SYSTEMS INC ST LOUIS THIS MAKER OF MILITARY GROUNDSUPPORT EQUIPMENT ELECTED TWO NEW DIRECTORS TO ITS BOARD THOMAS J GUILFOIL 74 YEARS OLD SENIOR PARTNER OF ST LOUIS LAW FIRM GUILFOIL PETZALL & SHOEMAKE AND ALEXANDER M CORNWELL 66 FORMERLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF STREETT INDUSTRIES INC A ST LOUIS PACKAGING COMPANY THE BOARD'S MEMBERSHIP INCREASES TO EIGHT 9303170157 930317 WHO'S NEWS MANUFACTURED HOME COMMUNITIES INC MANUFACTURED HOME COMMUNITIES INC CHICAGO MICHAEL A TORRES A VICE PRESIDENT OF WILSHIRE ASSOCIATES IN SANTA MONICA CALIF AND LOUIS H MASOTTI CURRENTLY VISITING PROFESSOR OF MANAGEMENT AND URBAN DEVELOPMENT AND DIRECTOR OF THE PROGRAM IN REAL ESTATE MANAGEMENT FOR THE GRADUATE SCHOOL OF MANAGEMENT OF THE UNIVERSITY OF CALIFORNIA AT IRVINE WERE ELECTED DIRECTORS OF THIS REAL ESTATE INVESTMENT TRUST INCREASING BOARD MEMBERSHIP TO SIX 9303170156 930317 AVERAGE YIELDS ON CDS WERE MOSTLY HIGHER IN THE LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE MOSTLY UP IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS CREPT UPWARD TO 311 FROM 307 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 523 FROM 479 THE SURVEY SAID THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS SLIPPED TO 267 FROM 271 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS REMAINED AT 487 THE WILMINGTON DEL INFORMATION SERVICE SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF AT LEAST 90000 THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE REMAINED AT 278 ON FIVEYEAR JUMBOS THE AVERAGE YIELD INCHED UP TO 502 FROM 499 ACCORDING TO BANXQUOTE 9303170155 930317 BUSINESS BRIEF PUBLIC SERVICE CO OF NEW MEXICO STATE REGULATORS CLEAR SALE OF POWER TO ANAHEIM CALIF PUBLIC SERVICE CO OF NEW MEXICO SAID STATE REGULATORS APPROVED THE SALE OF 50 MEGAWATTS OF POWER TO ANAHEIM CALIF FOR 555 MILLION THE ALBUQUERQUE NM UTILITY EXPECTS THE 55 MILLION GAIN ON THE SALE TO INCREASE 1993 EARNINGS BY ABOUT 13 CENTS A SHARE THE TOTAL GAIN IS 105 MILLION BUT THE NEW MEXICO PUBLIC SERVICE COMMISSION REQUIRED THE COMPANY TO RETURN 5MILLION TO ITS CUSTOMERS IN ADDITION THE UTILITY SAID THE SALE WILL RESULT IN A BENEFIT OF SIX CENTS TO EIGHT CENTS A SHARE FROM REDUCED ANNUAL OPERATING AND FINANCING COSTS ITS AGREEMENT WITH THE COMMISSION INCLUDES A PACT CAPPING THE COST OF THE NEXT 50 MEGAWATTS OF GENERATING CAPACITY ADDED TO THE SYSTEM AT 864 A KILOWATT FURTHER THE UTILITY MUST GET COMMISSION APPROVAL TO PURCHASE ANY POWER TO MEET FUTURE DEMAND IN 1992 THE COMPANY HAD A LOSS OF 1114 MILLION OR 267 A SHARE ON 5963 MILLION IN REVENUE THE LOSS INCLUDED A 221 MILLION WRITEDOWN ON POWER PLANT ASSETS 9303170154 930317 BUSINESS BRIEFS ALLIEDSIGNAL AEROSPACE CANADA A UNIT OF ALLIEDSIGNAL INC AND INSTRUMAR LTD WILL JOINTLY DEVELOP AND MARKET AN ELECTRONIC SYSTEM FOR DETECTING DANGEROUS ICE BUILDUP ON AIRCRAFT WINGS RYLAND TRADING LTD A UNIT OF RYLAND GROUP INC ENTERED INTO A PARTNERSHIP WITH ORENDAIN EQUIPO CONSTRUCTOR SC TO BUILD HOMES IN THE GUADALAJARA REGION OF MEXICO MOBIL CORP SIGNED A LETTER OF MEMORANDUM THAT WILL ALLOW INDIAN OIL CORP LTD TO MARKET MOBILBRANDED LUBRICANTS THROUGHOUT INDIA TERMS WEREN'T DISCLOSED SUPERIOR INDUSTRIES INTERNATIONAL INC'S BOARD HAS AUTHORIZED THE DEVELOPMENT OF AN ALUMINUM WHEEL MANUFACTURING PLANT IN MEXICO EXPECTED TO COST MORE THAN 30 MILLION FLOW INTERNATIONAL CORP SIGNED A LETTER OF INTENT TO BUY THE ASSETS OF POWER CLIMBER INC AND ITS AFFILIATES TERMS WEREN'T DISCLOSED 9303170153 930317 WHO'S NEWS FIFTH THIRD BANCORP FIFTH THIRD BANCORP CINCINNATI CLEMENT L BUENGER 66 YEARS OLD RETIRED AS CHAIRMAN A POST HE HAS HELD SINCE 1989 A SUCCESSOR HAS NOT BEEN NAMED MR BUENGER WHO WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER FROM 1980 TO 1990 WILL REMAIN A DIRECTOR SEPARATELY J KENNETH BLACKWELL 45 WAS ELECTED TO THE BOARD OF THIS BANK COMPANY WHICH HAS 102 BILLION IN ASSETS MR BLACKWELL WHO WAS APPOINTED US REPRESENTATIVE TO THE UNITED NATIONS HUMAN RIGHTS COMMISSION IN 1991 FILLS A VACANCY ON THE 24MEMBER BOARD 9303170152 930317 FRENCH BANK RATINGS ARE LOWERED BY S&P NEW YORK STANDARD & POOR'S CORP LOWERED ITS DEBT RATINGS ON SEVERAL FRENCH BANKS CITING INCREASED CREDIT RISK FOR THE INSTITUTIONS WHILE OPERATING MARGINS ARE NEAR A SIXYEAR LOW THE RATINGS OF THE FOLLOWING BANKS' SENIOR UNSECURED DEBT WERE DOWNGRADED BANQUE INDOSUEZ A MEMBER OF COMPAGNIE DE SUEZ GROUP TO SINGLEAPLUS FROM DOUBLEAMINUS AND BANQUE PARIBAS AND COMPAGNIE BANCAIRE MEMBERS OF GROUPE PARIBAS TO SINGLEA FROM DOUBLEAMINUS TWO UNITS OF COMPAGNIE FINANCIERE DE CIC ET DE L'UNION EUROPEENNE CIC FUNDING AND CIC FINANCE DELAWARE INC WERE LOWERED TO A1 FROM A1PLUS FOR SHORTTERM COMMERCIAL PAPER CREDISUEZ ALSO A MEMBER OF COMPAGNIE DE SUEZ GROUP REMAINS UNDER REVIEW WITH A SINGLEAPLUS SENIOR DEBT RATING THE RATINGS CONCERN SAID THAT SMALL AND MEDIUMSIZED COMPANIES PARTICULARLY THOSE CREATED DURING THE EXPANSION OF THE MID1980S AND COMMERCIAL REAL ESTATE PROJECTS HAVE SUFFERED FROM THE SLOWDOWN IN THE FRENCH ECONOMY IN THE PAST TWO YEARS THE FINANCIAL PERFORMANCE OF BANKS WITH LARGE LOAN EXPOSURE TO THESE TWO SECTORS WILL BE DAMAGED BY LOST INTEREST REVENUE AND LOAN LOSSES IN THE MEDIUM TERM S&P'S FRENCH RATINGS UNIT ADDED DESPITE THE FRENCH BANKING INDUSTRY'S REALIZATION THAT THE PRICING OF LOANS HAD DECLINED TO A POINT TOO LOW TO COVER RISKS AND PROVIDE AN ECONOMIC RETURN REVERSING THE DOWNWARD TREND IN LENDING MARGINS HAS PROVEN DIFFICULT GIVEN THE OVERCAPACITY OF THE BANKING SYSTEM IN FRANCE THE RATINGS AGENCY SAID 9303170151 930317 CHEMICAL BANKING LIBERTY FINANCIAL PLAN JOINT VENTURE BY PETER PAE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHEMICAL BANKING CORP IS JOINING HANDS WITH MUTUAL FUND MARKETER LIBERTY FINANCIAL COS TO HELP SELL INVESTMENT PRODUCTS TO CHEMICAL CUSTOMERS THE JOINT VENTURE EXPECTED TO BE ANNOUNCED TODAY REPRESENTS ANOTHER APPROACH BY A BANK TO BOLSTER INVESTMENT PRODUCTS SUCH AS MUTUAL FUNDS IT FOLLOWS A SIMILAR MOVE BY NATIONSBANK CORP CHARLOTTE NC WHICH ANNOUNCED IN OCTOBER IT WAS TEAMING UP WITH DEAN WITTER DISCOVER & CO TO MARKET SECURITIES AT BRANCHES OF NATIONSBANK THAT MARKED THE FIRST TIME A MAJOR BANK TEAMED UP WITH A LARGE SECURITIES FIRM IN A VENTURE TO OFFER SECURITIES IN BANK OFFICES MORE TYPICALLY BANKS HAVE ARRANGED FOR THIRDPARTY MUTUAL FUND COMPANIES TO SELL THROUGH BANK BRANCHES OR THEY HAVE PURCHASED MUTUAL FUND COMPANIES OUTRIGHT BANK CUSTOMERS DISSATISFIED WITH THE LOW RATES THEY ARE GETTING ON BANK CERTIFICATES OF DEPOSIT AND MONEYMARKET FUNDS HAVE BEEN INCREASINGLY SHIFTING MONEY OUT OF BANKS AND INTO STOCKS AND BONDS IN HOPES OF GETTING HIGHER RETURNS BANKS WANT TO MAINTAIN THE RELATIONSHIP THEY HAVE WITH CUSTOMERS SAID KENNETH R LEIBLER PRESIDENT OF LIBERTY FINANCIAL BUT TO RETAIN AND BUILD CUSTOMERS YOU HAVE TO SUPPLY A WHOLE BUFFET OF PRODUCTS THESE DAYS INDEED BY MERGING WITH LIBERTY FINANCIAL WHICH MANAGES MORE THAN 30 BILLION IN ASSETS CHEMICAL WILL BE ABLE TO GREATLY EXPAND ITS LINE OF INVESTMENT PRODUCTS CHEMICAL ALREADY OFFERS ITS OWN MUTUAL FUND FAMILY HANOVER FUNDS IN ADDITION CHEMICAL IS HOPING THAT IT CAN PROVIDE BETTER INVESTMENT EXPERTISE TO CUSTOMERS ALSO BY ALIGNING WITH LIBERTY CHEMICAL WON'T HAVE TO SPEND ADDITIONAL CAPITAL TO BUILD BACKOFFICE OPERATIONS OR OTHER COSTS OF STARTING THE MUTUAL FUNDS BUSINESS FROM SCRATCH FOR LIBERTY FINANCIAL A SUBSIDIARY OF LIBERTY MUTUAL INSURANCE CO BOSTON THE JOINT VENTURE WOULD SHARPLY EXPAND ITS DISTRIBUTION NETWORK THROUGH CHEMICAL'S EXTENSIVE BRANCH NETWORK LIBERTY WOULD BE ABLE TO TAP 25 MILLION CHEMICAL CUSTOMERS AS POTENTIAL BUYERS OF THE INVESTMENT PRODUCTS BOTH COMPANIES ARE EXPECTED TO EQUALLY SHARE IN REVENUE EXPENSES AND PROFITS OF THE JOINT VENTURE TO BE CALLED CHEMICAL INVESTMENT SERVICES WHICH UPON REGULATORY APPROVAL IS SLATED TO BEGIN OPERATING IN THE THIRD QUARTER LIBERTY FINANCIAL OFFERS A RANGE OF LOAD MUTUAL FUNDS INCLUDING THE LIBERTY FINANCIAL GOVERNMENT SECURITIES FUND WHICH WAS THE TOP SELLING FUND SOLD THROUGH BANKS LAST YEAR THE COMPANY ALSO SELLS ANNUITIES AND BROKERAGE SERVICES 9303170150 930317 WORLD MARKETS TOKYO'S HOT STREAK IS HALTED BY PROFITTAKING LONDON PRICES SLIP AMID BRITISH BUDGET DETAILS A WALL STREET JOURNAL NEWS ROUNDUP PROFITTAKING KNOCKED TOKYO STOCKS DOWN TUESDAY ENDING A WINNING STREAK OF SEVEN SESSIONS THE LONGEST SINCE FEBRUARY 1991 LONDON SHARES SLIPPED WHILE INVESTORS TRIED TO DIGEST BRITAIN'S BUDGET PROPOSAL TO SOLVE THE GOVERNMENT DEFICIT PROBLEM WITHOUT CHOKING ECONOMIC RECOVERY FRANKFURT PRICES EASED AMID WORRIES ABOUT WHETHER GERMANY WILL LOWER INTEREST RATES TOMORROW HONG KONG SHARES FOCUSED ON CORPORATE EARNINGS AND RECOVERED ALMOST HALF THEIR DAYEARLIER LOSSES THAT WERE SPARKED BY A DEEPENING RIFT BETWEEN CHINA AND BRITAIN OVER THE TERRITORY'S DEMOCRATIC REFORM PROPOSALS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 4866 POINTS MONDAY DROPPED 11788 TO 1796830 ON WEDNESDAY THE NIKKEI ROSE 2598 POINTS TO CLOSE THE MORNING SESSION AT 1799428 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES COMPARED WITH ABOUT 337 MILLION SHARES ON MONDAY LOSERS TOPPED GAINERS599407 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 266 POINTS MONDAY SHED 889 TO 134471 THE NIKKEI MOVED LOWER THROUGHOUT THE DAY FROM A HIGH OF 1811709 PUBLIC PENSION FUNDS TRIED TO SUPPORT SHARE PRICES SEVERAL TIMES BUT THE GOVERNMENT CASH WAS OVERWHELMED BY WIDESPREAD PROFITTAKING INCLUDING SOME LIQUIDATION OF POSITIONS BY TOKKIN SPECIFIED MONEY TRUSTS BEFORE THE MARCH 31 FISCAL YEAREND BOOK CLOSINGS SENTIMENT IN TOKYO NONETHELESS WAS STRONG WITH BUYING EVIDENT AMONG INDIVIDUAL AND FOREIGN INVESTORS IN THE PREVIOUS 1 1/2 WEEKS THE INDEX SURGED MORE THAN 1300 POINTS OR 79 LARGECAPITALIZATION SHARES WHICH HAD BEEN IN THE FOREFRONT OF THE PREVIOUS GAINS TOOK HITS TUESDAY WHILE LAGGARD SMALLCAPITALIZATION STOCKS FARED MUCH BETTER EXPECTATIONS THAT THE JAPANESE GOVERNMENT WILL UNVEIL MEASURES TO REVIVE THE ECONOMY CONTINUED TO UNDERPIN INTEREST IN STOCKS FUELED BY OFFICIALS' COMMENTS TUESDAY HAJIME FUNADA HEAD OF THE ECONOMIC PLANNING AGENCY SAID THE GOVERNMENT MUST CONSIDER ADDITIONAL ECONOMIC PACKAGES THAT HAVE IMMEDIATE EFFECTS AND YOSHIRO MORI HEAD OF THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID JAPAN SHOULD INTRODUCE MEASURES BEFORE PRIME MINISTER KIICHI MIYAZAWA MEETS US PRESIDENT CLINTON APRIL 16 THE MARKET CONSENSUS IS THAT WITHOUT CONCRETE ACTION OR OTHER FRESH INCENTIVES THE NIKKEI PROBABLY WILL FLOUNDER AROUND 18000 IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 31 POINTS TO 29193 THE FT 30STOCK INDEX ROSE 35 POINTS TO 22733 VOLUME WAS 492 MILLION SHARES COMPARED WITH 5781 MILLION SHARES A DAY EARLIER DEALINGS WERE LIGHT FOR MOST OF THE SESSION UNTIL CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT BEGAN HIS BUDGET ADDRESS WHICH HE WAS STILL DELIVERING WHEN THE STOCK MARKET CLOSED HIS FORECAST THAT THE GOVERNMENT DEFICIT WOULD TOTAL 50 BILLION 7175 BILLION IN THE FISCAL YEAR ENDING MARCH 31 1994 SENT THE STOCKINDEX FUTURES MARKET DOWN PULLING THE STOCK MARKET LOWER IN ITS WAKE THE DEFICIT ESTIMATE WAS HIGHER THAN THE 44 BILLION THAT MR LAMONT FORECAST IN NOVEMBER AND EXCEEDED ECONOMISTS' 49 BILLION ESTIMATE INVESTORS FEAR THAT HEAVY BOND FUNDING REQUIREMENTS COULD DIVERT MONEY FROM THE STOCK MARKET AND LEAD TO HIGHER INTEREST RATES AS THE GOVERNMENT ATTEMPTS TO ATTRACT INVESTORS IN FRANKFURT THE DAX 30STOCK INDEX SLIPPED 474 POINTS TO 169783 VOLUME WAS LOW AS INVESTORS WERE ANXIOUS ABOUT TOMORROW'S MEETING OF THE BUNDESBANK'S POLICYSETTING MEETING THE FEDERAL AND STATE GOVERNMENTS' PACT REACHED LAST WEEKEND ON FINANCING EASTERN GERMANY'S CONSOLIDATION MAY HAVE OPENED THE WAY FOR THE GERMAN CENTRAL BANK TO REDUCE ITS LENDING RATES PARIS STOCKS EDGED DOWN IN TRADING THAT WAS BECALMED AHEAD OF FRENCH ELECTIONS THE COMING TWO WEEKENDS MILAN PRICES SLUMPED WEIGHED DOWN BY A CORPORATE RIGHTS ISSUE AND A POSSIBLE ITALIAN PRIVATIZATION DELAY BUT STOCKHOLM EQUITIES RALLIED ENDING A FIVESESSION SLIDE AS SWEDISH INTEREST RATES FELL ZURICH PRICES FELL AS INVESTORS AWAITED RATE ACTION IN GERMANY A SLIGHT MORNING RALLY LED BY PHARMACEUTICAL STOCKS WAS OFFSET BY LATER PROFITTAKING SYDNEY STOCKS REBOUNDED TO RECOVER MOST OF MONDAY'S LOSSES LINKED TO THE AUSTRALIAN ELECTION OUTCOME AS MARKET SENTIMENT WAS LIFTED BY FIRMER OVERSEAS MARKETS AND BY PRIME MINISTER PAUL KEATING'S COMMENT MONDAY THAT HE SAW ROOM FOR ANOTHER CUT IN AUSTRALIAN INTEREST RATES IN HONG KONG BARGAINHUNTERS PUSHED THE MARKET UP 2 BOUNCING BACK FROM A DIVE OF MORE THAN 5 CAUSED BY THE SINOBRITISH DISPUTE ABOUT POLITICAL REFORMS IN THE BRITISH COLONY THE WRANGLING WAS STILL AN UNDERLYING FACTOR WHILE THE MAIN FOCUS TURNED TO CORPORATE FUNDAMENTALS SINGAPORE SHARES ALSO REBOUNDED BUOYED BY STOCKS' STRENGTH MONDAY IN NEW YORK AND TUESDAY IN HONG KONG AND BY A SINGAPOREAN GOVERNMENT ANNOUNCEMENT MONDAY ABOUT ALLOWING MORE MONEY FROM A COMPULSORY RETIREMENT FUND TO BE INVESTED IN THE STOCK MARKET SEOUL SHARE PRICES PLUNGED IN A CORRECTION OF THE PAST THREE SESSIONS OF SHARP GAINS NORTH KOREA'S DECISION TO QUIT THE NUCLEAR NONPROLIFERATION TREATY CAUSED FOREIGN BUY ORDERS IN SEOUL TO DRY UP IN TAIPEI SHARES FELL ON PROFITTAKING AMONG CORPORATE DEVELOPMENTS IN TOKYO SHOWA SHELL SEKIYU CLIMBED 38 YEN OR 43 TO 917 YEN 774 ON HEAVY TURNOVER THE PRICE LAST MONTH PLUNGED FROM AROUND 1500 YEN WHEN THE OIL CONCERN POSTED A LOSS OF 125 BILLION YEN 106 BILLION BECAUSE OF BAD DEALINGS IN CURRENCY FUTURES IN LONDON GEORGE WIMPEY JUMPED 10 PENCE OR 79 TO 136 PENCE 195 IN LINE WITH EXPECTATIONS THE CONSTRUCTION COMPANY'S 1992 PRETAX LOSS WIDENED TO 1124 MILLION 1613 MILLION FROM A YEAREARLIER DEFICIT OF 161 MILLION BECAUSE OF A 1138 MILLION SPECIAL PROVISION AGAINST THE REDUCED VALUE OF PROPERTY HOLDINGS THE 1991 RESULTS INCLUDED CHARGES OF 464 MILLION WIMPEY ALSO HALVED ITS ANNUAL DIVIDEND TO 525 PENCE A SHARE TO SAVE CASH IN SYDNEY SANTOS ROSE 13 CENTS TO 332 AUSTRALIAN DOLLARS US233 THE OIL AND NATURAL GAS PRODUCER REPORTED 1992 PROFIT OF A1127 MILLION US793 MILLION COMPARED WITH A 1991 LOSS OF A1109 MILLION AFTER WRITING DOWN ITS TIMOR SEA AND US OPERATIONS THE DIVIDEND WAS RAISED 11 TO 21 CENTS A SHARE IN MILAN OLIVETTI COMMON SHARES WERE SUSPENDED AT 1825 LIRE 114 DOWN FROM 1900 LIRE FRIDAY THE ISSUE WASN'T TRADED MONDAY THE COMPUTER MAKER DOMINATED MARKET SENTIMENT FOLLOWING THE COMPANY'S MONDAY ANNOUNCEMENT OF LOSSES WITHIN THE GROUP AND OF A 900 BILLIONLIRE 5604 MILLION RIGHTS ISSUE 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 9303170149 930317 GM RECALLS 18 MILLION TRUCKS SPARKING FRESH CRITICISM OF SOME OLDER VEHICLES BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SAID IT IS RECALLING 18 MILLION 19881993 FULLSIZE PICKUP TRUCKS AND LARGE SPORTUTILITY VEHICLES TO REPLACE DEFECTIVE HOSES THAT COULD LEAK AND SPARK A FIRE UNDER THE VEHICLE'S BODY GM WHICH IS RESISTING A RECALL OF 197387 FULLSIZE PICKUP TRUCKS OVER THE QUESTION OF GASOLINETANK FIRES SAID IT HAS RECEIVED REPORTS OF 400 INCIDENTS INCLUDING A FEW MINOR INJURIES FROM FIRES ON THE NEWER VEHICLES THESE FIRES OCCURRED WHEN VENTED TRANSMISSION FLUID IGNITED NEAR THE CATALYTIC CONVERTER IN CERTAIN 198893 CHEVROLET CK AND GMC SIERRA PICKUP TRUCKS AND CERTAIN 1992 SUBURBAN BLAZER AND YUKON LARGE SPORTUTILITY VEHICLES THE 18 MILLION TRUCKS BEING RECALLED REPRESENT ABOUT HALF OF THOSE PARTICULAR VEHICLES BUILT BY GM IN THE PERIOD THE RECALL OF THE 18 MILLION NWER TRUCKS PROMPTED THE CENTER FOR AUTO SAFETY A WASHINGTONBASED GROUP FOUNDED BY RALPH NADER AND A FREQUENT CRITIC OF GM TO CRITICIZE THE AUTO MAKER FOR NOT RECALLING THE 47 MILLION EARLIER TRUCKS THE GROUP CONTENDS THAT THE GASOLINE TANKS ON GM'S FULLSIZE PICKUPS ARE PRONE TO BURST INTO FLAMES ON IMPACT BECAUSE THEY'RE PLACED OUTSIDE THE VEHICLE'S UNDERFRAME WHILE WE RECOGNIZE THE SERIOUSNESS OF THE UNDERBODY FIRES THIS CONDITION DOESN'T BEGIN TO MATCH THE SERIOUSNESS AND INTENSITY OF THE SIDEIMPACT FIRES SAID CLARENCE DITLOW THE CENTER'S EXECUTIVE DIRECTOR IT'S SURPRISING THAT GM WILL ISSUE A RECALL FOR A PROBLEM THAT HAS CAUSED NO DEATHS BUT REFUSES TO RECALL A MUCH MORE SERIOUS PROBLEM THAT HAS CAUSED OVER 300 DEATHS GM HAS SETTLED SOME CASES OUT OF COURT INVOLVING THE OLDER TRUCKS BUT INSISTS THAT ITS TRUCKS ARE SAFE THERE CLEARLY WAS A DEFECT CAUSING FIRES IN THE NEWER VEHICLES THE COMPANY SAID HOWEVER GM CONTENDS THAT ITS SIDESADDLE FUEL TANK ISN'T DEFECTIVE BUT IF GM WERE TO RECALL THE 47 MILLION OLDER MODELS THE COST OF REPLACING A FUEL TANK WOULD BE CONSIDERABLY HIGHER AND MUCH MORE DIFFICULT THAN REPLACING A VENT HOSE MONDAY TRANSPORTATION SECRETARY FEDERICO PENA ORDERED THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION TO EXPEDITE ITS INVESTIGATION OF THE 47 MILLION 197387 PICKUP TRUCKS THE ORDER WAS IN RESPONSE TO A LETTER TO THE TRANSPORTATION SECRETARY FROM THE CENTER ALLEGING THAT GM DOCUMENTS SHOW THE COMPANY MISLED THE GOVERNMENT TO OBTAIN A VEHICLE CRASHTESTING STANDARD THAT WAS LOWER THAN WHAT GM ITSELF FOUND FEASIBLE AND NECESSARY TO PREVENT FIRE CRASH DEATHS AND INJURIES A GM SPOKESWOMAN SAID THE COMPANY STANDS BY THE SAFETY OF THE 47 MILLION PICKUP TRUCKS IN DISPUTE ADDING THAT STATE ACCIDENT STATISTICS SHOW THE GM TRUCKS IN QUESTION ARE AS SAFE AS ITS COMPETITORS' THE SPOKESWOMAN ALSO NOTED THAT THE SIDEIMPACT DISPUTE AND THE RECALL RELATED TO THE UNDERBODY FIRES ARE NOT EVEN REMOTELY RELATED THE PROBLEM IN THE RECALL INVOLVING THE 18 MILLION LIGHT TRUCKS IS CAUSED BY A DEFECT IN A VENT HOSE THAT COULD RELEASE TRANSMISSION FLUID NEAR THE CATALYTIC CONVERTER AND POSSIBLY CAUSE AN UNDERBODY FIRE GM SAID THE PROBLEM INVOLVES THE CK SIERRA SUBURBAN BLAZER AND YUKON MODELS EQUIPPED WITH 50LITER 57LITER AND 74LITER ENGINES COUPLED WITH CERTAIN AUTOMATIC TRANSMISSIONS GM SAID THE PROBLEM IS MORE LIKELY TO OCCUR WHEN THE VEHICLE IS USED FOR TOWING HEAVY LOADS AT HIGH SPEEDS GM SAID DEALERS WILL INSTALL AT NO CHARGE A LONGER VENT HOSE TO REROUTE VENTED TRANSMISSION FLUID AWAY FROM ANY HEAT SEPARATELY GM SAID IT IS RECALLING 20000 199192 CHEVROLET CAPRICE POLICE CARS AND SPECIAL SERVICE WAGONS USED ON SNOWCOVERED OR ICY ROADS SALT CORROSION BETWEEN THE 12VOLT JUNCTION BLOCK AND METAL INNER FENDER SKIRT COULD DAMAGE UNDERHOOD WIRING WHICH MAY DISABLE THE VEHICLE OR RESULT IN A FIRE GM SAID NO INJURIES OR DEATHS HAVE BEEN REPORTED RESULTING FROM THIS CONDITION GM SAID DEALERS AT NO CHARGE WILL REPLACE THE JUNCTION BLOCK IN SEVERE CORROSION CASES OR INSTALL A SHIELDING INSULATOR UNDER THE JUNCTION BLOCK 9303170147 930317 INTERNATIONAL GPA'S LENDERS APPEAR UNABLE TO MEET DEADLINE TO RESTRUCTURE ITS BANK DEBT BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL BANK LENDERS TO GPA GROUP PLC APPEAR UNABLE TO MEET A FRIDAY DEADLINE TO RESTRUCTURE ITS BANK DEBT INDICATING FURTHER SNAGS IN A DEAL TO EASE THE AIRCRAFTLEASING COMPANY'S FINANCIAL PROBLEMS GPA BASED IN SHANNON IRELAND HAS NOW ASKED BANK LENDERS FOR ANOTHER TEMPORARY WAIVER ON THE TERMS OF ITS LOAN OBLIGATIONS WHICH WOULD EXPIRE IN MID APRIL WHILE IT SEEKS TO DEFER 1 BILLION IN PRINCIPAL PAYMENTS AND LOOSEN FINANCIAL COVENANTS THE CLOSELY HELD COMPANY ALSO IS HAVING PROBLEMS RAISING 200 MILLION IN EQUITY FROM ITS SHAREHOLDERS WHILE THE WAIVER WILL BE EASY TO RENEW THE REQUEST REFLECTS THE DIFFICULTY THE COMPANY IS HAVING PERSUADING LENDERS TO SIGN OFF ON THE DEAL SOME BANKERS SAID SOME BANKS ARE REPORTEDLY CONCERNED THAT DEFERRING LOAN PAYMENTS PUTS SENIOR SECURED BANK LENDERS IN A WORSE FINANCIAL POSITION THAN THE UNSECURED SUBORDINATED BOND CREDITORS IT'S TAKING LONGER THAN ANYONE WAS HOPING SAID ONE OF GPA'S LENDERS A GPA SPOKESMAN DECLINED TO COMMENT ONE INDIVIDUAL CLOSE TO THE COMPANY SAID THE PROCESS IS GRINDING ON IT'S NOT AN EASY PROCESS AND WE'VE NEVER SUGGESTED THAT IT WOULD BE HE SUGGESTED THAT A DEAL COULD BE FINALIZED BY EARLY APRIL A BIT LATER THAN PLANNED WITH FINANCING DRYING UP LAST YEAR GPA BEGAN A TRANSATLANTIC REORGANIZATION TO SHORE UP ITS BALANCE SHEET THE PLAN INCLUDED CANCELLATION OF AIRCRAFT ORDERS AND THE PROPOSED LOAN DEFERRALS AND 200 MILLION EQUITY INJECTION FROM ITS OWNERS THE BANK AGREEMENT IS CONDITIONED UPON RECEIVING THE NEW EQUITY AND EQUITY INVESTORS WILL NOT COMMIT WITHOUT A BANK AGREEMENT WHILE ADVISERS HAVE BEEN WORKING ON BOTH DEALS CONCURRENTLY GPA HAS COME UP SHORT ON BOTH COUNTS SO FAR WITH EXISTING SHAREHOLDERS BALKING AT FINANCING THE FULL 200 MILLION GPA HAS HIRED THE INVESTMENT BANKING FIRM OF JAMES D WOLFENSOHN INC TO RAISE CASH FROM NEW INVESTORS WOLFENSOHN WAS RETAINED TO TRY TO FIND DEEPPOCKETED INVESTORS WHO COULD COMMIT TO TAKING A SIGNIFICANT STAKE IN GPA BANKERS IN THE DEAL SAID WOLFENSOHN DECLINED TO COMMENT THE CLOCK IS TICKING FOR THE COMPANY WITHOUT AN AGREEMENT BY APRIL BANKERS SAID IT'S UNCLEAR WHETHER BANKS WILL ALLOW THE COMPANY TO MAKE PRINCIPAL PAYMENTS ON MATURING DEBT SECURITIES THE COMPANY HAS 1 BILLION IN OUTSTANDING MEDIUMTERM NOTES 200 MILLION OF WHICH COMES DUE BY THE END OF JUNE THEY TRADE AT AROUND 50 OF FACE VALUE REFLECTING SOME DOUBT ABOUT REPAYMENT 9303170146 930317 DIVIDEND NEWS CHEMICAL BANKING CORP CHEMICAL BANKING CORP SAID IT INCREASED ITS QUARTERLY DIVIDEND 10 TO 33 CENTS A SHARE FROM 30 CENTS A SHARE PAYABLE APRIL 30 TO STOCK OF RECORD APRIL 6 THE NEW YORK COMPANY CITED STRONG 1992 EARNINGS AND A MORE OPTIMISTIC OUTLOOK ON REVENUE MERGERRELATED EXPENSE SAVINGS AND FURTHER IMPROVEMENT IN CREDIT QUALITY IN 1993 9303170144 930317 OTC FOCUS OVERTHECOUNTER STOCKS FINISH MIXED AS PROFITTAKING CUTS INTO EARLY RALLY BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS ENDED MIXED AFTER SOME MODEST EARLY GAINS EVAPORATED THE NASDAQ COMPOSITE INDEX WHICH JUMPED MORE THAN TWO POINTS IN EARLY TRADING FINISHED WITH A SLIM GAIN OF 026 OR 004 TO 69547 DECLINING ISSUES TOPPED ADVANCERS 1322 TO 1287 PETER COOLIDGE SENIOR EQUITY TRADER AT KIDDER PEABODY & CO SAID OPTIMISM ABOUT THE MARKET'S STRENGTH HELPED LIFT PRICES EARLY BUT THE RALLY DIED WHEN INVESTORS TOOK ADVANTAGE OF THAT BUYING TO TAKE PROFITS TRADERS SAID INVESTORS ARE GROPING FOR CLUES ON WHICH WAY PRICES WILL HEAD NEXT SOME WERE AWAITING TODAY'S LABOR DEPARTMENT REPORT ON CONSUMER PRICES A PRODUCER PRICE REPORT LAST WEEK WAS WORSE THAN EXPECTED AND SET OFF SELLING IN THE STOCK MARKET TRADING ACTIVITY BOUNCED BACK SOMEWHAT FROM MONDAY WHEN MANY MARKET PLAYERS TOOK THE DAY OFF BECAUSE OF TROUBLES RELATED TO THE EAST COAST BLIZZARD NASDAQ NATIONAL MARKET SYSTEM VOLUME JUMPED TO 193882400 SHARES FROM 157449800 SHARES ON MONDAY EVEN THOUGH THE GENERAL STRENGTH IN STOCKS RECENTLY HAS LEFT SOME CONCERNED THAT A SELLOFF IS IN THE OFFING TRADERS BELIEVE BUYERS WILL STEP IN IF PRICES DROP PORTFOLIO MANAGERS THEY NOTE STILL HOLD RELATIVELY LARGE CASH POSITIONS THERE IS A LOT OF RESISTANCE ON THE DOWNSIDE SAID MICHAEL RAIL HEAD OF NASDAQ INSTITUTIONAL SALES TRADING AT DONALDSON LUFKIN & JENRETTE HE SAID MANY INVESTORS ARE HOPING TO BUY NASDAQ STOCKS AT SLIGHTLY LOWER LEVELS JOSEPH R HARDIMAN PRESIDENT OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH RUNS NASDAQ ECHOED THAT SENTIMENT IN AN INTERVIEW HE SAID STRONG SALES OF STOCK MUTUAL FUNDS WILL REMAIN A POWERFUL ENGINE FOR THE SMALLSTOCK MARKET HOWEVER HE CAUTIONED THAT NASDAQ STOCKS COULD EXPERIENCE A 5 OR 10 CORRECTION LATER THIS YEAR IF THERE IS A STRONG SPIKE IN INTEREST RATES I'M A LONGTERM BULL HE SAID BUT THERE ARE GOING TO BE SOME BUMPS IN THE ROAD WALL DATA A NEW ISSUE JUMPED TO 22 3/4 ON ITS FIRST DAY OF TRADING UP FROM ITS OFFERING PRICE OF 20 THE STOCK TRADED AS HIGH AS 26 INTRADAY THE REDMOND WASH SOFTWARE COMPANY'S OFFERING TOTALED 2880000 SHARES INCLUDING 880000 THAT WERE SOLD BY EXISTING HOLDERS PACIFIC SUNWEAR ALSO AN INITIAL PUBLIC OFFERING FINISHED AT 15 3/4 UP FROM ITS 13ASHARE PRICING THE SANTA ANA CALIF COMPANY MAKES CASUAL APPAREL FOR MEN OTHER IPOS INCLUDED MOTHERS WORK A PHILADELPHIA MATERNITY CLOTHES MAKER WHICH ROSE TO 18 FROM ITS 13ASHARE PRICING SHOE CARNIVAL A EVANSVILLE IND SHOE STORE CONCERN WHICH ENDED AT 15 1/2 UP FROM A 13ASHARE OFFERING LEVEL AND ASECO A MARLBORO MASS MAKER OF EQUIPMENT USED BY INTEGRATED CIRCUIT MANUFACTURERS WHICH ROSE TO 10 1/4 FROM ITS 950ASHARE ISSUE PRICE SHARES OF VANGUARD CELLULAR A GREENSBORO NC CELLULAR TELEPHONE COMPANY CLIMBED 2 TO 24 3/4 WHILE THE STOCK OF J BAKER A READVILLE MASS FOOTWEAR CONCERN ADDED 2 TO 21 3/4 BEAR STEARNS & CO UPGRADED INVESTMENT RATINGS ON BOTH STOCKS EARLIER THIS WEEK J BAKER POSTED FOURTHQUARTER EARNINGS OF 46 CENTS A SHARE UP FROM 24 CENTS A YEAR EARLIER PROGRESS SOFTWARE PLUNGED 4 1/2 TO 43 A MOVE A SPOKESMAN SAID HE WAS AT A LOSS TO EXPLAIN MARKET OBSERVERS SAID A LARGE INSTITUTIONAL HOLDER MIGHT HAVE BEEN RESPONSIBLE FOR MUCH OF THE SELLING TSI CORP SLIPPED 5/8 TO 2 5/8 AFTER THE COMPANY PROJECTED A 12 MILLION LOSS FOR THE THIRD QUARTER THAT ENDS THIS MONTH COMPARED WITH A YEAREARLIER LOSS OF 965000 BOTH PERIODS INCLUDE NONRECURRING CHARGES THE WORCESTER MASS COMPANY WHICH PROVIDES RESEARCH SERVICES FOR DRUG AND AGRICULTURE COMPANIES WILL ELIMINATE 10 OF ITS STAFF 9303170143 930317 COAL OPERATOR GROUP HAS SET UP FUND TO EASE STRIKE COSTS ASHLAND COAL EXPECTS DECLINE IN 1STQUARTER PROFIT IN PART DUE TO COSTSHARING PACT BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL UNIONS AREN'T THE ONLY GROUPS WITH STRIKE FUNDS THE BITUMINOUS COAL OPERATORS ASSOCIATION SET UP A STRIKE FUND OF SORTS BEFORE BEGINNING NEGOTIATIONS OVER A NEW LABOR AGREEMENT WITH THE UNITED MINE WORKERS LAST YEAR THE FUND ACTUALLY MORE OF A COSTSHARING AGREEMENT TO SUBSIDIZE STRUCK MINES WAS DISCLOSED YESTERDAY IN A RELEASE BY ASHLAND COAL INC ASHLAND BASED IN HUNTINGTON WVA SAID THREE SUBSIDIARIES MADE PAYMENTS TO ASSOCIATION MEMBERS HIT BY A SELECTIVE STRIKE LAST MONTH ASHLAND WASN'T A STRIKE TARGET IF THE UMW CALLS ANOTHER STRIKE THAT DOESN'T INCLUDE ASHLAND THE COMPANY MIGHT HAVE TO MAKE MORE PAYMENTS ASHLAND AND THE COAL OPERATORS' ASSOCIATION DECLINED TO ELABORATE ON THE AGREEMENT THE ASSOCIATION REPRESENTS COALPRODUCING SUBSIDIARIES OF AS MANY AS 12 HOLDING COMPANIES THE DISCLOSURE OF THE COAL OPERATORS' AGREEMENT WAS PART OF AN ANNOUNCEMENT BY ASHLAND THAT FIRSTQUARTER EARNINGS WILL FALL SIGNIFICANTLY BELOW RESULTS FROM A YEAR EARLIER IN PART BECAUSE OF THE PAYMENTS IN 1992'S FIRST QUARTER ASHLAND EARNED 73 MILLION OR 41 CENTS A SHARE THE COMPANY ALSO BLAMED EQUIPMENT PROBLEMS TOUGH MINING CONDITIONS AND ACCOUNTING CHANGES FOR THE EXPECTED LOWER EARNINGS HENRY FARBER A PROFESSOR OF ECONOMICS AT PRINCETON UNIVERSITY CALLED THE AGREEMENT A TACTICAL DEVICE TO MAKE STRIKES LESS ATTRACTIVE TO THE UNION BECAUSE IT POTENTIALLY DILUTES THE FINANCIAL IMPACT OF A SELECTIVE STRIKE MOREOVER IT SPREADS THE PAIN AROUND AMONG MEMBERS OF THE COAL OPERATORS' ASSOCIATION MAKING IT TOUGHER FOR THE UNION TO DIVIDE THE BARGAINING GROUP PROF FARBER SAID RAFAEL VILLAGRAN COAL ANALYST WITH LEHMAN BROTHERS ADDED I'M SURPRISED THEY DIDN'T DO IT BEFORE THE LAST WIDELY KNOWN ATTEMPT TO SHARE THE COSTS OF A STRIKE WAS BY MAJOR AIRLINES IN THE DAYS BEFORE DEREGULATION ACCORDING TO LABOR EXPERTS THE UMW SAID IT ISN'T WORRIED ABOUT THE COAL OPERATORS' FUND THE EXPERIENCE OF THE LAST FEW WEEKS DEMONSTRATES THE EFFECT A SELECTIVE STRIKE CAN HAVE A UNION SPOKESMAN SAID MEMBERS OF THE COAL OPERATORS' ASSOCIATION GAVE IN TO SOME UNION DEMANDS MARCH 2 AFTER A MONTHLONG STRIKE AGAINST TWO PEABODY HOLDING CO UNITS PEABODY IS OWNED BY BRITAIN'S HANSON PLC THE STRIKE'S END CAME ONE DAY AFTER THE UMW TARGETED FIVE OTHER PRODUCERS AND IT CAME IN THE FORM OF A 60DAY LABOR CONTRACT EXTENSION WHICH ENDS MAY 3 9303170142 930317 TECHNOLOGY MARION MERRELL SAYS FIRSTQUARTER NET WILL BE UP TO 70 BELOW EXPECTATIONS BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL MARION MERRELL DOW INC SHARES PLUNGED AS THE ONCEPREDICTABLE DRUG MAKER DISCLOSED ITS FIRSTQUARTER EARNINGS COULD FALL AS MUCH AS 70 BELOW ANALYSTS' EXPECTATIONS MARION MERRELL SHARES FELL 4375 IN EARLY NEW YORK STOCK EXCHANGE TRADING LOSING 19 OF THEIR VALUE BEFORE CLOSING AT 18875 DOWN 4 SIMILARLY JOLTED WAS STOCK OF DOW CHEMICAL CO WHICH OWNS A 71 STAKE IN MARION MERRELL SHARES OF DOW WHICH SAID THE EXPECTED EARNINGS DROPOFF AT MARION MERRELL COULD HAVE AN ADVERSE IMPACT OF 25 CENTS A SHARE THIS QUARTER CLOSED AT 5375 DOWN 2125 HIT BY DECLINING SALES OF ITS NICODERM ANTISMOKING PATCH AND A HOST OF PATENT WOES KANSAS CITYBASED MARION MERRELL SAID PERSHARE EARNINGS THIS QUARTER COULD FALL ABOUT 60 TO 70 BELOW ANALYSTS' PREDICTIONS OF ABOUT 62 CENTS A SHARE FOR THE MOST PART THE COMPANY'S BLEAK PROFIT PICTURE LIKE A SOMEWHAT LESS GLOOMY ONE THE PREVIOUS DAY FROM ELI LILLY & CO ILLUSTRATES HOW PRESSURE TO RESTRAIN DRUG PRICES HAS THE BIGGEST IMPACT ON COMPANIES WITH OLDER DRUGS AND RELATIVELY WEAK NEW DRUG PIPELINES LILLY WHICH SAID THIS QUARTER'S PERSHARE EARNINGS COULD FALL AS MUCH AS 30 CENTS A SHA RE BELOW ANALYSTS' EXPECTATIONS CLOSED YESTERDAY AT 4875 DOWN 2 AT ONE TIME DRUG COMPANIES COULD ACHIEVE SOLID EARNINGS BY RAISING PRICES BUT MANAGED HEALTH CARE AND PRESIDENT CLINTON'S SIGNALS THAT HE SEEKS TO RESTRAIN PHARMACEUTICAL PRICES ARE BEGINNING TO HAVE AN IMPACT ON DRUG COMPANY PROFITS MARION MERRELL FOR INSTANCE CITED FEDERAL AND PRIVATE PRICE RESTRAINTS AS A FACTOR IN THIS QUARTER'S DISAPPOINTING EARNINGS PRICING AS A MECHANISM TO MAINTAIN GROWTH IS BEING TAKEN AWAY FROM THESE COMPANIES SAID OPPENHEIMER & CO ANALYST STEVEN B GERBER PRICE RESTRAINTS HIT ALL DRUG COMPANIES BUT ESPECIALLY SO COMPANIES LIKE MARION MERRELL AND LILLY WITH RELATIVELY WEAK NEARTERM NEWDRUG PIPELINES THE FACT THAT THEIR PRODUCTS ARE MORE MATURE IS HURTING THEM SAID PAINEWEBBER ANALYST RONALD NORDMANN THE SENATE SPECIAL COMMITTEE ON AGING REPORTED THAT IN 1992 MARION MERRELL'S DRUG PRICE INCREASES EXCEEDED THE RATE OF INFLATION BY 37 TIMES THAT REPORT SAID MARION MERRELL HAD FOUR PRODUCTS AMONG THE COUNTRY'S 30 HIGHESTINFLATING DRUG PRODUCTS IN 1991 AND 1992 THE COMMITTEE REPORT ALSO SAID LILLY'S SIX TOPSELLING DRUGS ROSE IN PRICE IN 1992 BY 33 TIMES THE RATE OF INFLATION MARION MERRELL'S TROUBLES HOWEVER GO FURTHER THAN PRICE RESTRAINTS NEW PRESCRIPTIONS FOR NICODERM WERE DOWN 31 FROM LAST YEAR ACCORDING TO A SURVEY OF DRUGSTORE SALES THE ENTIRE SMOKINGCESSATION MARKET IS SLIDING THIS YEAR TO A PREDICTED 400 MILLION FROM ABOUT 700 MILLION IN 1992 THE SALES FALL PARTLY REFLECTS THE FACT THAT NICODERM WAS A NEW PRODUCT IN EARLY 1992 AND A PENTUP DEMAND FOR SMOKING PATCHES EXISTED AT THE TIME NOW MANY OF THOSE EARLY CUSTOMERS ARE GONE EITHER THE PATCH IS GOING TO WORK OR IT'S NOT AND EITHER WAY YOU'RE GOING TO LOSE THE PATIENT SAID INDEPENDENT ANALYST HEMANT K SHAH MOREOVER THE COMPANY IS BESET BY DECLINING SALES OF ITS TOP THREE DRUGS THE HEART DRUG CARDIZEM THE ANTIHISTAMINE SELDANE AND THE ULCER DRUG CARAFATE CARDIZEM'S PATENT EXPIRED IN NOVEMBER AND NEW PRESCRIPTIONS THROUGH FEBRUARY FOR CARDIZEM TABLETS AND CAPSULES WERE DOWN 3 FROM THE YEARAGO PERIOD BY ONE ANALYST'S ESTIMATE NEW PRESCRIPTIONS THROUGH FEBRUARY FOR SELDANE PRODUCTS WHICH LOSE PATENT PROTECTION IN 1994 PLUMMETED 30 FROM LAST YEAR THE COMPARABLE FALL FOR CARAFATE ALSO NOW WITHOUT A PATENT WAS 12 IN THE PAST SEVERAL YEARS MARION HAD CHUGGED ALONG WITH ANNUAL EARNINGS INCREASES OF AT LEAST 20 BECAUSE OF PATENT EXPIRATIONS ON KEY PRODUCTS THE GOOD TIMES WERE KNOWN TO BE COMING TO AN END BUT THE EXTENT OF THE COMPANY'S DIFFICULTIES WAS STILL SURPRISING MR NORDMANN SAID HE IS REVISING DOWNWARD HIS 1993 PERSHARE EARNINGS FORECAST FOR THE COMPANY TO 190 A SHARE FROM 275 9303170140 930317 INDUSTRY FOCUS STEELMAKERS FIND A COSTCUTTING PLAN YIELDS HEADACHES CONTRACTING OUT PROVOKES LABOR DISPUTES PRODUCES FRAUDULENT BILLING BY CLARE ANSBERRY STAFF REPORTER OF THE WALL STREET JOURNAL CONTRACTING OUT THE COSTCUTTING BRAINCHILD OF THE 1980S IS CAUSING HEADACHES AMONG A LOYAL BOOSTER THE STEEL INDUSTRY AT A USS/KOBE STEEL PLANT IN LORAIN OHIO AUDITORS EXAMINING THE COMPANY'S PURCHASING DEPARTMENT LAST YEAR FOUND CONTRACTORS OVERCHARGING THE STEELMAKER FOR SUCH THINGS AS DEMOLISHING A BUILDING OR REPAIRING MOLDS THE EXTRA PAYMENT WAS USED IN ONE CASE TO BUY A USS/KOBE SUPERVISOR THOUSANDS OF DOLLARS WORTH OF COMPUTERS AND OFFICE FURNITURE ACCORDING TO SOURCES FAMILIAR WITH THE AUDIT THE COMPANY TRYING TO CUT COSTS HAD EMBARGOED SUCH PURCHASES THE COMPANY IS A JOINT VENTURE BETWEEN USX CORP'S US STEEL UNIT AND KOBE STEEL LTD OF JAPAN IN ANOTHER INSTANCE A COMPANY CONTRACTOR PUT AN ADDITION WORTH BETWEEN 10000 AND 20000 ON A SUPERVISOR'S HOUSE THE CONTRACTOR NEVER BILLED THE SUPERVISOR BUT LATER CHARGED THE COMPANY FOR THE COST OF THE ADDITION BY PADDING HIS OWN BILL TO USS/KOBE IN OTHER CASES WORKERS BOOKED CARIBBEAN TRIPS THROUGH LOCAL TRAVEL AGENTS WHO THEN BILLED CONTRACTORS FOR THE COSTS THE WHOLE ISSUE OF CONTRACTING OUT HAS BECOME A BIG HEADACHE FOR US STEEL CONTENDS BILL MITCHELL WITH LOCAL 1104 OF THE UNITED STEELWORKERS OF AMERICA UNION WHICH REPRESENTS THE PLANT MR MITCHELL HAS AMASSED CLOSE TO 2000 COMPLAINTS CHARGING THE COMPANY WITH CONTRACTING OUT JOBS IN VIOLATION OF THE LABOR CONTRACT THE UNION ALSO WANTS TO SEE THE KICKBACK AUDITS TO DETERMINE WHETHER PROFITSHARING PAYMENTS TO WORKERS WERE AFFECTED STEELWORKERS HAVE FILED LITERALLY THOUSANDS OF CONTRACTINGOUT COMPLAINTS AT VARIOUS PLANTS AND NOW STEELMAKERS ARE SCRAMBLING TO RESOLVE THEM AS THEY BEGIN LABOR TALKS A SETTLEMENT AGREEMENT IS EXPECTED SOON INVOLVING THOUSANDS OF CONTRACTINGOUT CASES AND WHAT COULD EXCEED MORE THAN 1 MILLION IN BACK PAY AT US STEEL'S FAIRLESS HILLS PA MILL LAST YEAR USX PAID 512000 IN BACK WAGES TO FAIRLESS WORKERS FOR CONTRACTINGOUT WORK THAT THE UNION SAID COULD HAVE BEEN DONE BY EXISTING EMPLOYEES OFTEN AT A LOWER COST UNION OFFICIAL CARMEN RETZO FOUND FAIRLESS HILLS CONTRACTORS BILLING THE COMPANY 260 FOR AN OIL CHANGE GREASE AND OIL FILTER AND LOGGING HUNDREDS OF MILES IN ONE DAY ON A TRUCK THAT WASN'T SUPPOSED TO LEAVE THE PLANT AFTER WHITTLING AWAY THEIR WORK FORCES IN THE 1980S STEELMAKERS AMASSED A COVEY OF CONTRACTORS TO HANDLE EVERYTHING FROM MAINTENANCE TO BUILDING FURNACES THE IDEA WAS TO IMPROVE FLEXIBILITY AND LOWER PRODUCTION COSTS IN THEORY AND OFTEN IN PRACTICE THE POLICY DOES BOTH HUNDREDS OF REPAIRS AND CONSTRUCTION PROJECTS ONCE DONE INHOUSE WERE HANDLED BY CONTRACTORS AND THE INDUSTRY SUBSTANTIALLY CUT COSTS AND IMPROVED PRODUCTIVITY BUT THE PROCESS ALSO TRANSFORMED DOZENS OF LOWLEVEL SUPERVISORS INTO POWER BROKERS FUNNELING MULTIMILLION DOLLAR JOBS TO FAVORED CONTRACTORS THE PROBLEM WAS PEOPLE AT THE PLANT LEVEL HAD MORE POWER THAN THEY'RE SUPPOSED TO SAYS A USS/KOBE CUSTOMER FAMILIAR WITH THE KICKBACK AUDIT AT THAT PLANT FOLLOWING THE AUDIT AT THAT PLANT TWO TOP USS/KOBE OFFICIALS RESIGNED AND A HALF DOZEN MORE EMPLOYEES WERE EITHER SUSPENDED FIRED OR REPRIMANDED IN SEPTEMBER CONTRACTOR STEVENS PAINTON CORP AGREED TO PAY USS/KOBE FOR OVERCHARGES AND WAS REMOVED FROM THE STEEL PLANT'S BID LIST ANOTHER CONTRACTOR WHO WAS FOUND GUILTY OF BID RIGGING AT THE PLANT IN 1987 AND FINED 300000 WAS INVESTIGATED FOR KICKBACKS BUT THE COMPANY HASN'T DISCLOSED THE RESULTS THE COMPANY REFUSED TO PROVIDE DETAILS OF THE AUDIT WE HAD A PURCHASING POLICY IN PLACE BUT WE HAD PEOPLE VIOLATING IT SAYS GEORGE MANOS ASSISTANT TO THE PRESIDENT AT USS/KOBE MR MANOS SAID THE COMPANY HAS MET WITH VENDORS SAYING NO ONE SHOULD BE EXPECTED TO GIVE GIFTS IN RETURN FOR CONTRACTS AND THAT ANY VIOLATIONS SHOULD BE REPORTED THE FIRST AUDIT SET OFF OTHER DISCLOSURES IN AN ANONYMOUS LETTER DATED OCT 10 TO USS/KOBE PRESIDENT ROBERT FRAVEL AN EMPLOYEE WROTE SAYING THAT A LOWERLEVEL SUPERVISOR GAVE FAVORED CONTRACTORS CONFIDENTIAL BID INFORMATION OVER THE FAX OR TELEPHONE A VIOLATION OF FEDERAL LAW THE EMPLOYEE SAID HIS SUPERVISOR PICKED TWO COMPANIES BEFORE BIDS WERE EVEN SOLICITED HE SAID WE'D HAVE TO CALL IN OTHER VENDORS TO MAKE IT LOOK RIGHT HE SAID HE SAID HIS SUPERVISOR WOULD ORDER 100 PARTS BUT ONLY 50 WOULD BE DELIVERED AND THE REMAINING MONEY WOULD BE USED BY THE FAVORED CONTRACTOR TO BUY THE SUPERVISOR A COMPUTER I MYSELF UNLOADED A COMPUTER FOR HIM THE SUPERVISOR IN A VACANT PARKING LOT THE EMPLOYEE SAID USS/KOBE INVESTIGATED THE LETTER AND SAID THE ALLEGATIONS WERE COVERED IN AN EARLIER AUDIT MEANWHILE ROBERT FRANK A FORMER USS/KOBE CONTRACTOR HAS SURFACED SAYING IN AN AFFIDAVIT THAT HIS COMPANY ROUTINELY STOLE USS/KOBE PRODUCTS AND THAT HE HIS PARTNER AND A FORMER US STEEL EXECUTIVE SPLIT KICKBACKS THE INTERNAL REVENUE SERVICE HAS BEEN ASKED TO INVESTIGATE BUT IRS OFFICIALS DECLINED TO COMMENT MR FRANK SAYS HE PERSONALLY RECEIVED ABOUT 20000 IN CASH FROM STEEL THAT WAS STOLEN FROM THE PLANT AND SOLD FOR SCRAP A FORMER FOREMAN WITH MR FRANK'S LORNIC CORP ALSO SAID IN AN AFFIDAVIT THAT USS/KOBE STEEL WAS SCRAPPED WITHOUT THE COMPANY'S KNOWLEDGE FOR CASH THE AFFIDAVIT IS PART OF A BREACHOFCONTRACT SUIT FILED BY MR FRANK WHICH HE LOST BUT IS NOW APPEALING HE HAS TRIED TO SETTLE OUT OF COURT FOR A 25 MILLION PAYMENT USS/KOBE'S MR MANOS SAID THE COMPANY'S TWO AUDITS HAVE DETERMINED THAT NO STEEL WAS STOLEN ANTHONY DEVINERE WHO REPRESENTS USS/KOBE OFFICIALS NAMED IN MR FRANK'S SUIT SAYS THE KICK BACK CLAIMS WERE INTRODUCED INTO A CASE SHORTLY BEFORE IT WAS DISMISSED AND ARE ONLY WILD VAGUE CHARGES MARK WALLACH AN ATTORNEY REPRESENTING MR FRANK'S FORMER PARTNER BERNARD D'AMBROSI SAYS MR FRANK IS SIMPLY TRYING TO GET MONEY FROM HIS CLIENT AND USS/KOBE WHEN ASKED ABOUT THE PAYOFFS MR WALLACH SAYS HE COULDN'T COMMENT BECAUSE HE WASN'T THERE MICHAEL LOCKER PRESIDENT OF LABOR MANAGEMENT CONSULTING FIRM LOCKER ASSOCIATES EXPECTS DIMINISHED USE OF CONTRACT LABOR BECAUSE COMPANIES HAVE FOUND IT INEFFICIENT AND VERY DIFFICULT TO MANAGE AS IT INVOLVES OUTSIDERS MOREOVER HE SAID CURRENT LABOR TALKS ARE ADDRESSING SIGNIFICANT WORKRULE AND CREWSIZE CHANGES WHICH COULD PROVIDE NEEDED FLEXIBILITY AND COST SAVINGS SOME JOBS REQUIRING SPECIAL EQUIPMENT OR SKILLS WILL ALWAYS REQUIRE AN OUTSIDE CONTRACTOR BUT HE SAYS IF A MORE MODERN LABOR AGREEMENT COMES INTO EFFECT CONTRACTING OUT WILL DISAPPEAR AND BOTH SIDES WILL BENEFIT 9303170139 930317 RAPPAPORT DEFEATS GUTTMAN AS HEAD OF NEW YORK MERC BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DANIEL RAPPAPORT VICE CHAIRMAN OF THE NEW YORK MERCANTILE EXCHANGE DEFEATED Z LOU GUTTMAN FOR THE CHAIRMANSHIP OF THE BIG ENERGY FUTURES MART MR RAPPAPORT WON WITH 386 VOTES TO 213 FOR MR GUTTMAN WHO WAS RUNNING FOR A THIRD TERM AS CHAIRMAN UNDER A CLOUD OF PENDING CIVIL CHARGES BY THE COMMODITIES FUTURES TRADING COMMISSION THE LOWPROFILE MR RAPPAPORT 39 YEARS OLD HAD BEEN THE CHOICE OF A MERC NOMINATING COMMITTEE EARLIER THIS YEAR THE MORE FLAMBOYANT AND CONTROVERSIAL MR GUTTMAN 43 RAN AS AN INDEPENDENT CANDIDATE IN A STATEMENT MR GUTTMAN SAID I AM EXTREMELY PROUD OF THE NEW YORK MERCANTILE EXCHANGE'S GROWTH AND SUCCESS UNDER MY ADMINISTRATION AND I WISH MY FRIEND DANNY RAPPAPORT EQUAL SUCCESS MR GUTTMAN HAD BEEN CHAIRMAN SINCE 1988 MR RAPPAPORT COULDN'T BE REACHED FOR COMMENT HE CAMPAIGNED ON A PROGRAM OF BROADENING THE MERC'S ARRAY OF FUTURES CONTRACTS AND OF EXPANDING HEALTH AND DISABILITY BENEFITS FOR EXCHANGE MEMBERS THE NEW MERC CHAIRMAN IS AN INDEPENDENT CRUDEOIL FUTURES TRADER WHO MINGLES EASILY WITH FELLOW FLOOR TRADERS AND HAS BEEN INSTRUMENTAL IN THE MERC'S PLANS TO MOVE TO A NEW TRADING FACILITY IN LATE 1994 MR RAPPAPORT RECEIVED SOLID SUPPORT FROM THE FLOORTRADER CONSTITUENCY GOING INTO THE RACE MR GUTTMAN STOOD ACCUSED BY THE CFTC OF PARTICIPATING IN A SUPERVISORY ROLE IN ILLEGAL FUTURES TRADING ON ANOTHER NEW YORK FUTURES EXCHANGE IN 1989 THE MERC BOARD HAD ASKED MR GUTTMAN TO RESIGN SHORTLY AFTER THE CIVIL CHARGES WERE LODGED BUT MR GUTTMAN WHO DENIES ALL WRONGDOING DECLINED AT THE TIME HE INSISTED THAT HIS FUTURE TENURE AT THE HELM OF THE NATION'S LARGEST ENERGYFUTURES MARKET BE DECIDED BY THE MEMBERS AT YESTERDAY'S REGULARLY SCHEDULED VOTE MR RAPPAPORT SERVED AS ACTING CHAIRMAN FOR FIVE MONTHS LAST YEAR WHILE MR GUTTMAN TOOK TIME OFF TO REVIEW HIS PENDING LEGAL CASE MR GUTTMAN'S REELECTION CHANCES HAD IMPROVED THOUGH NOT ENOUGH AS IT TURNED OUT FOLLOWING HIS SUCCESSFUL EFFORTS TO REOPEN THE MERC AND OTHER NEW YORK FUTURES EXCHANGES ON THE FIRST BUSINESS DAY FOLLOWING THE BOMB BLAST AT THE NEIGHBORING WORLD TRADE CENTER TOWERS 9303170138 930317 PEOPLE PATTERNS BY ALAN L OTTEN PEOPLE GENERALLY RETURN TO WORK AFTER RETIREMENT RELATIVELY QUICKLY OR NOT AT ALL PENN STATE SOCIOLOGIST MARK HAYWARD AND COLLEAGUES FROM OTHER UNIVERSITIES STUDIED THE POSTRETIREMENT WORK HISTORY OF A LARGE GROUP OF MEN WHO RETIRED AT 55 OR OLDER AND WERE THEN FOLLOWED FOR OVER A DECADE ABOUT ONETHIRD RETURNED AT SOME POINT TO THE WORK FORCE SELFEMPLOYED PEOPLE PROFESSIONALS SALES WORKERS AND FARM LABORERS HAD HIGHERTHANAVERAGE RATES OF RETURN TO POSTRETIREMENT JOBS BUT ALMOST THREEFOURTHS OF ALL THOSE RESUMING WORK DID SO IN THE FIRST YEAR AFTER RETIREMENT WHILE AN ADDITIONAL 18 DID IT IN THE SECOND AND THIRD YEARS FEWER THAN ONE OUT OF 10 RETIREES WHO REENTERED THE LABOR FORCE DID SO AFTER THREE YEARS OF RETIREMENT THE LONGER THE RETIREMENT STATUS IS OCCUPIED THE LESS LIKELY THE RETIREE WILL MOVE BACK INTO EMPLOYMENT THE ANALYSIS SAYS MORE SURPRISING PERHAPS WAS THE DISCOVERY THAT ABOUT TWOTHIRDS OF THE POSTRETIREMENT WORK WAS IN FULLTIME JOBS PEOPLE WORKING FULL TIME AFTER RETIREMENT HAD ALMOST UNIFORMLY WORKED FULL TIME BEFORE RETIREMENT AMONG THOSE HOLDING PARTTIME POSTRETIREMENT JOBS 57 HAD WORKED PART TIME BEFORE RETIREMENT THE STEADY INCREASE OVER THE YEARS IN THE NUMBER OF MEN AND WOMEN EITHER TAKING EARLY RETIREMENT OR FORCED INTO IT HAS INCREASED THE NUMBER OF PEOPLE SEEKING POSTRETIREMENT WORK DR HAYWARD SAYS MANY WHO DON'T HAVE LARGE PRIVATE PENSIONS FIND THEY NEED THE MONEY TO KEEP UP WITH INFLATION OTHERS SEEK MORE SOCIAL CONTACT OFTEN THROUGH PARTTIME JOBS IN RETAIL STORES THE AUTHORS ACKNOWLEDGE THEIR RESEARCH DEALS ONLY WITH WORKERS WHO FOUND POSTRETIREMENT WORK WE KNOW NOTHING OF RETIREES WHO MIGHT HAVE ATTEMPTED TO RETURN BUT FAILED TO FIND POSITIONS THEY SAY FAMILY MEMBERS AND FRIENDS HELP CARE GIVERS BUT FAMILY MEMBERS OFTEN MAKE TROUBLE AS WELL SOCIOLOGISTS J JILL SUITOR OF LOUISIANA STATE UNIVERSITY AND KARL PILLEMER OF CORNELL UNIVERSITY COLLECTED DATA FROM 95 MARRIED WOMEN WHO WERE CARING FOR ELDERLY PARENTS WITH DEMENTIA THE WOMEN WERE ASKED WHO IN THEIR FAMILY OR SOCIAL NETWORK HELPED CARE FOR THE PARENT OR PROVIDED THE CARE GIVER WITH EMOTIONAL SUPPORT THEY ALSO ASKED WHO HAD GIVEN LESS SUPPORT THAN EXPECTED OR HAD CRITICIZED THE WAY THE CARE GIVER DID HER JOB IN ALL SOME 1200 FAMILY MEMBERS AND FRIENDS WERE EVALUATED BY THE 95 CARE GIVERS ALMOST ALL THE CARE GIVERS HAD RECEIVED SOME HELP IN TAKING CARE OF THE PARENT'S DAILY NEEDS AND NEARLY ONETHIRD HAD RECEIVED EMOTIONAL SUPPORT FRIENDS BULKED LARGE IN PROVIDING EMOTIONAL SUPPORT WHILE FAMILY MEMBERS ESPECIALLY SPOUSES CHILDREN AND SIBLINGS WERE MORE INVOLVED IN HELPING WITH DAILY CARE BUT WHEN IT CAME TO PUTTING ADDITIONAL STRESS ON THE CARE GIVERS SIBLINGS BY FAR LED THE LIST OFTEN CRITICIZING THE WAY THEIR SISTER WAS DOING HER JOB HELPING HER LESS THAN EXPECTED OR GENERALLY NEGLECTING HER THE RESEARCHERS SUGGEST THAT PARENTAL CARE MAY EXACERBATE ANY UNRESOLVED CONFLICTS FROM THE EARLIER STAGES OF THE SIBLING RELATIONSHIP STRESSCREATING FRIENDS WERE THOSE WHO NEGLECTED THE CARE GIVER OR COMPLAINED THAT SHE DIDN'T SPEND ENOUGH TIME WITH THEM PEOPLE WHO HAD THEMSELVES CARED FOR AN ELDERLY RELATIVE WERE THE MOST FREQUENT SOURCE OF SUPPORT FOR CARE GIVERS AND WERE LESS LIKELY TO ADD TO THEIR STRESS WOMEN WERE MORE APT THAN MEN TO LEND SUPPORT BUT WERE ALSO MORE LIKELY TO ADD STRESS CHILDSUPPORT CHANGES MAY DO LESS THAN HOPED FOR IN GETTING WOMEN OFF WELFARE WISCONSIN HAS BEEN ONE OF THE MOST AGGRESSIVE STATES IN ATTEMPTING TO COLLECT MORE CHILDSUPPORT PAYMENTS FOR DIVORCED OR SEPARATED MOTHERS DANIEL MEYER OF THE UNIVERSITY OF WISCONSIN'S SCHOOL OF SOCIAL WORK WONDERED WHETHER THIS WAS HELPING MANY WOMEN LEAVE WELFARE ALL PAYMENTS IN WISCONSIN MUST GO THROUGH STATE FAMILY COURTS AND HE EXAMINED A LARGE SAMPLE OF WOMEN RECEIVING CHILDSUPPORT AWARDS FROM 1980 TO MID1989 HE FOUND THAT AS SUPPORT PAYMENTS INCREASED SOME WOMEN DID BECOME MORE LIKELY TO LEAVE WELFARE BUT THAT IN GENERAL PAYMENTS WERE TOO SMALL AND TOO IRREGULAR TO HAVE ANY WIDESPREAD EFFECT ON WELFARE ROLLS CHILDSUPPORT PAYMENTS DON'T BECOME A SIGNIFICANT FACTOR IN GETTING A WOMAN OFF WELFARE IN WISCONSIN UNTIL SHE IS RECEIVING MORE THAN 300 A MONTH IN SUCH PAYMENTS HIS ANALYSIS INDICATES BUT COMPARATIVELY FEW WELFARE MOTHERS GET THAT MUCH IN CHILD SUPPORT SINCE THE FATHERS TEND TO BE POOR THEMSELVES ON THE OTHER HAND HIS RESEARCH SUGGESTS WOMEN WHO HAD MANAGED TO GET OFF WELFARE THROUGH A JOB OR OTHER MEANS WERE MUCH LESS LIKELY TO RETURN TO WELFARE ONCE THEY WERE GETTING REGULAR CHILD SUPPORT THIS WAS TRUE ALMOST REGARDLESS OF THE AMOUNT OF THE PAYMENTS DR MEYER CONCEDES THAT CHILDSUPPORT PAYMENTS MIGHT HAVE MORE IMPACT IN SOME STATES WHERE THE LEVEL OF WELFARE ALLOWANCES IS MUCH LOWER THAN IN WISCONSIN TIE WEARING BECOMES LESS AND LESS COMMON THE ROPER ORGANIZATION FINDS ONLY ABOUT ONE IN FOUR MEN SAID IN A SURVEY LAST YEAR THAT HE HAD WORN A TIE AT SOME POINT IN THE PRECEDING WEEK DOWN FROM ALMOST TWO OUT OF FIVE IN 1979 THE PREVIOUS TIME THE QUESTION WAS ASKED RAISING THE MINIMUM LEGAL DRINKING AGE REDUCES ALCOHOL CONSUMPTION AMONG HIGHSCHOOL SENIORS BUT INCREASES THEIR MARIJUANA USAGE ACCORDING TO A STUDY BY ECONOMISTS THOMAS LEMIEUX OF PRINCETON UNIVERSITY AND JOHN DINARDO OF THE UNIVERSITY OF CALIFORNIA AT IRVINE NINE OUT OF TEN HIGHSCHOOL STUDENTS SAY CHEATING TAKES PLACE IN THEIR SCHOOL ACCORDING TO A SURVEY BY KAPLAN EDUCATIONAL CENTER A COMPANY THAT COACHES PEOPLE FOR STANDARDIZED TESTS FOUR OUT OF FIVE SAY STUDENTS FORGE THEIR PARENTS' SIGNATURES AND THREEQUARTERS SAY STUDENTS STEAL FROM ONE ANOTHER 9303170137 930317 TECHNOLOGY EXEMPLOYEE OF IBM CHARGED WITH THEFT OF COMPUTER CARDS KINGSTON NY A FORMER EMPLOYEE OF INTERNATIONAL BUSINESS MACHINES CORP WAS INDICTED BY ULSTER COUNTY AUTHORITIES FOR ALLEGEDLY STEALING COMPUTER CARDS VALUED AT MORE THAN 49 MILLION A GRAND JURY CHARGED CARL A MACDONALD ONCE AN IBM MANAGER WITH STEALING 3381 MAINFRAME COMPUTER MEMORY CARDS FROM IBM'S MANUFACTURING AND DEVELOPMENT FACILITY IN KINGSTON ACCORDING TO THE DISTRICT ATTORNEY'S OFFICE HERE A SPOKESMAN FOR IBM BASED IN ARMONK NY WOULDN'T COMMENT EXCEPT TO SAY THAT IT WAS PROBABLY THE LARGEST THEFT IBM HAS EXPERIENCED AN ATTORNEY FOR MR MACDONALD COULDN'T BE REACHED MICHAEL KAVANAGH THE DISTRICT ATTORNEY SAID MR MACDONALD OF POUGHKEEPSIE NY ALONG WITH SOME NONIBM ACCOMPLICES SOLD THE CARDS TO COMPUTER COMPANIES IN THE US AND ABROAD FOR BETWEEN 7 MILLION AND 10 MILLION MR KAVANAGH WOULDN'T DISCLOSE THE NAMES OF THE BUYERS AND SAID IT WASN'T YET KNOWN WHETHER THEY BOUGHT THE CARDS KNOWING THEY WERE STOLEN PROPERTY HE SAID THE STATE POLICE AND THE FEDERAL BUREAU OF INVESTIGATION HAVE RECOVERED CARDS WORTH ABOUT 30 MILLION SO FAR WITH EACH CARD VALUED AT BETWEEN 14000 AND 50000 MR MACDONALD 41 YEARS OLD HAS BEEN INDICTED ON FIVE COUNTS OF GRAND LARCENY IN THE FIRST DEGREE WHICH CARRY A MAXIMUM SENTENCE OF 25 YEARS IMPRISONMENT AND TWO COUNTS OF SECONDDEGREE GRAND LARCENY UP TO 15 YEARS MR KAVANAGH SAID 9303170136 930317 WHO'S NEWS BARING UNIT'S PRESIDENT FOUR OTHERS RESIGN IN CLASH OVER POLICY LONDON BARING SECURITIES LTD THE EQUITIES ARM OF MERCHANT BANK BARINGS PLC ANNOUNCED THE RESIGNATION OF ITS CHAIRMAN CHRISTOPHER HEATH AND FOUR ASSOCIATES FOLLOWING WHAT IT DESCRIBED AS A DISAGREEMENT ABOUT STRATEGIC POLICY MR HEATH WHO BUILT BARING SECURITIES INTO ONE OF BRITAIN'S MOST PROFITABLE SECURITIES BUSINESSES IN THE 1980S IS TO REMAIN A CONSULTANT TO BARINGS BUT AT A SUBSTANTIALLY REDUCED SALARY LAST YEAR BARINGS ANNOUNCED THAT ITS SECURITIES ARMS HAD PLUNGED INTO THE RED IN THE FIRST HALF OF 1992 MR HEATH IS THOUGHT TO HAVE CLASHED WITH THE BANK'S TOP MANAGEMENT IN CALLING FOR POTENTIALLY COSTLY MOVES TO EXPAND ITS DERIVATIVES BUSINESS HIS PLACE AS CHAIRMAN OF BARING SECURITIES IS TO BE TAKEN BY MILES RIVETTCARNAC BARINGS SAID ANDREW FRASER AND DIARMAID KELLY HAVE BEEN APPOINTED DEPUTY CHAIRMEN AND PETER NORRIS CHIEF EXECUTIVE OF BARING SECURITIES WHILE JAMES REMINGTONHOBBS WILL ASSUME RESPONSIBILITY FOR MANAGEMENT OF BARING SECURITIES INC 9303170135 930317 BUSINESS BRIEF AMR PLANS TO TAKE SIGNIFICANT CHARGE TIED TO THE GROUNDING OF 25 AIRPLANES FORT WORTH TEXAS AMR CORP SAID IT WILL TAKE A SIGNIFICANT CHARGE AS A RESULT OF THE GROUNDING OF 25 WIDEBODY JETS IN ITS FLEET THE PARENT OF AMERICAN AIRLINES IS EXPECTED TO ANNOUNCE AS EARLY AS TODAY WHETHER IT WILL GROUND RECENT VINTAGE AIRBUS INDUSTRIE A300 JETS LEASED FROM THE MANUFACTURER OR THE NEARLY 20YEAROLD MCDONNELL DOUGLAS DC10S IT OWNS OUTRIGHT THE SIZE OF THE CHARGE AS WELL AS ITS TIMING WILL DEPEND ON WHICH PLANES AMR DECIDES TO ELIMINATE SUCH REMOVAL IS EXPECTED TO RESULT IN A SIGNIFICANT FIRSTQUARTER CHARGE THE COMPANY SAID IN A MARCH 5 SUPPLEMENT TO A PROSPECTUS FOR EQUIPMENT CERTIFICATES A TYPE OF DEBT ISSUE A SPOKESMAN ADDED THAT IT'S LIKELY THE CHARGE WOULD BE TAKEN LATER THAN THE FIRST QUARTER THE AIRLINE CURRENTLY HAS 673 JETS IN ITS FLEET AMERICAN IS TRYING TO CUT CAPACITY AND COSTS AS PART OF A PLAN TO BOOST PROFITABILITY BY ELIMINATING UNPROFITABLE ROUTES BEEFING UP PROFITABLE ONES AND SHIFTING TOWARDS MORE FEEBASED AIRLINE SERVICES IT CAN PROVIDE TO OTHER CARRIERS AMR'S BOARD IS EXPECTED TO HEAR THE COMPANY'S RECOMMENDATION ON THE GROUNDING AND MAKE A DECISION AT ITS REGULAR MONTHLY MEETING TODAY A SPOKESMAN DECLINED TO SAY WHAT THE COMPANY WAS PROPOSING BUT THE CONVENTIONAL WISDOM HAS THE COMPANY KEEPING THE A300S THOSE AIRBUS JETS ARE YOUNG TWOENGINE TWOPILOT AIRCRAFT THAT ARE 38 MORE FUELEFFICIENT THAN THE DC10S AND AMERICAN WILL INCUR FINANCIAL PENALTIES FOR TURNING THE JETS BACK THE DC10S BY CONTRAST ARE MORE LABORINTENSIVE WITH THEIR THREEPILOT COCKPITS AND REQUIRE MORE MAINTENANCE BECAUSE THEY ARE OLDER AND HAVE MORE ENGINES AMERICAN ALSO OWNS THEM OUTRIGHT AND COULD SEEK TO SELL THEM OR SIMPLY PARK THEM WITH OTHER UNUSED JETS AMERICAN HASN'T TIPPED ITS HAND ON WHICH WAY IT'S LEANING IN FACT IT'S BEEN TRYING TO PRESSURE AIRBUS FOR INCENTIVES THAT MAKE IT MORE FINANCIALLY ATTRACTIVE TO KEEP THE A300S IT'S KNOWN THAT AIRBUS ISN'T INTERESTED IN CHANGING ITS LEASE RATES WITH AMERICAN BUT IT ISN'T CLEAR WHETHER IT MIGHT MAKE SOME KIND OF OFFER TO HELP OUT ON MAINTENANCE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AMR CLOSED AT 59875 DOWN 25 CENTS 9303170134 930317 MARKETING & MEDIA ESPN PLANS TO BUY SOME ASSETS OF FIRM OF NEW NBC AIDE NEW YORK CABLE SPORTS NETWORK ESPN SAID IT WOULD BUY THE SPORTS PROGRAMMING AND SALES INTERESTS OF OHLMEYER COMMUNICATIONS CO FROM DON OHLMEYER WHO WAS RECENTLY NAMED THE NEW WEST COAST PRESIDENT OF NBC TERMS OF THE PLANNED SALE WEREN'T DISCLOSED THE SALE WHEN COMPLETED WOULD ELIMINATE POTENTIAL CONFLICTS OF INTEREST RAISED BY MR OHLMEYER'S CONTINUED OWNERSHIP OF HIS 10YEAROLD COMPANY DESPITE HIS NEW ROLE AS THE TOP PROGRAMMING EXECUTIVE AT NBC OHLMEYER COMMUNICATIONS PRODUCES MORE THAN 200 HOURS OF SPORTS PROGRAMMING ANNUALLY MUCH OF IT FOR OTHER NETWORKS SUCH AS GOLF'S SKINS GAME FOR ABC ABC AND ESPN ARE BOTH OWNED BY CAPITAL CITIES/ABC INC WITH HEARST CORP HOLDING A 20 STAKE IN THE SPORTS CHANNEL BUT MR OHLMEYER SAID YESTERDAY THE PLANNED SALE WASN'T AIMED AT ELIMINATING PROGRAM CONFLICTS AND SAID HE HAD BEEN IN TALKS WITH ESPN SINCE LAST SUMMER BEFORE HE TOOK ON THE NEW NBC POST OHLMEYER COMMUNICATIONS HAD ALSO PRODUCED OTHER FARE SUCH AS TV MOVIES BUT IT WILL NO LONGER DO SO MR OHLMEYER WILL HOWEVER RETAIN RIGHTS TO THE COMPANY'S PAST PRODUCTIONS IN SEPARATE NEWS AT GENERAL ELECTRIC CO'S NBC NETWORK JEFF ZUCKER DECIDED TO GIVE UP HIS POST AS EXECUTIVE PRODUCER OF THE NBC NIGHTLY NEWS A JOB HE HAD HELD FOR JUST TWO MONTHS TO CONCENTRATE ON HIS ORIGINAL DUTIES AS EXECUTIVE PRODUCER OF THE MORNING TODAY SHOW THE 27YEAROLD MR ZUCKER WAS ASKED TO DO DOUBLE DUTY BY RECENTLY DEPARTED NBC NEWS PRESIDENT MICHAEL GARTNER 9303170133 930317 POLITICS & POLICY COMPETITIVENESS COUNCIL SUPPORTS BIGGER TAX BREAKS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A COMPETITIVENESS COMMISSION SET UP BY CONGRESS URGED THE CLINTON ADMINISTRATION TO PROVIDE BIGGER TAX BREAKS FOR INVESTMENTS IN MANUFACTURING AND RESEARCH THAN IT HAS PROPOSED THE COMPETITIVENESS POLICY COUNCIL'S REPORT GENERALLY ENDORSED PRESIDENT CLINTON'S APPROACH TO INVESTMENT SPENDING BUT URGED THE ADMINISTRATION TO DO MORE FOR INSTANCE MR CLINTON HAS PROPOSED FOR LARGE COMPANIES A TWOYEAR 7 TAX CREDIT ON INVESTMENTS IN NEW PLANT AND EQUIPMENT FRED BERGSTEN CHAIRMAN OF THE PANEL SAID THE CREDIT SHOULD BE 20 FOR TWO YEARS AND 10 AFTER THAT THE PANEL ALSO URGED THAT THE LAPSED RESEARCHANDDEVELOPMENT TAX CREDIT WHICH MR CLINTON WANTS TO RENEW AND MAKE PERMANENT BE EXPANDED TO INCLUDE CERTAIN FUNDS SPENT TO COMMERCIALIZE PRODUCTS THE R&D TAX CREDIT CURRENTLY COVERS SPENDING ON PRODUCT DEVELOPMENT IN ADDITION THE PANEL RECOMMENDED A 25 TAX CREDIT FOR COMPANY SPENDING ON VENTURES WITH UNIVERSITIES AND A 10 TAX CREDIT FOR THE FIRST TWO YEARS OF SPENDING ON INDUSTRY R&D CONSORTIA MANY COMPANIES DON'T JOIN CONSORTIA FOR FEAR THAT THE COOPERATIVE VENTURES MIGHT VIOLATE ANTITRUST LAW MR BERGSTEN SAID THE ADDITIONAL CREDIT SHOULD ENCOURAGE THEM TO TAKE THE PLUNGE HE ARGUED OVERALL THE COUNCIL RECOMMENDED THAT THE US ADOPT A GOAL OF INCREASING PRODUCTIVITY 2 A YEAR WHICH IS ABOUT THREE TIMES WHAT THE US AVERAGED BETWEEN 1973 AND 1991 LAST YEAR US BUSINESS BOOSTED ITS PRODUCTIVITY 28 THE BIGGEST INCREASE IN 20 YEARS IF A 2 GROWTH IN PRODUCTIVITY IS TO BE SUSTAINED THE REPORT SAID THE US ECONOMY MUST GROW AT LEAST 3 TO 35 ANNUALLY TO TAKE ACCOUNT OF THE GROWTH IN THE WORK FORCEESTIMATED AT 1 TO 15 A YEAR TO REACH THOSE LEVELS THE PANEL SAID THE US MUST INVEST AN ADDITIONAL 60 BILLION OVER THE NEXT FEW YEARS WHICH IS SEVERAL TIMES HIGHER THAN MR CLINTON'S PLANS BUT AT THE SAME TIME THE PANEL WANTS TO ELIMINATE THE FEDERAL BUDGET DEFICIT ENTIRELY IN EIGHT YEARS EVEN THOUGH ALL THE ADDITIONAL SPENDING WOULD INCREASE THE DEFICIT THE 11MEMBER COMMISSION DIDN'T COME UP WITH ANY DETAILED BUDGET PLAN WHICH WOULD INCLUDE TAX INCREASES WE WERE IN ALL CANDOR FINDING IT DIFFICULT TO RECONCILE STRONGLY DIVERGENT VIEWS THE REPORT SAID SO THE PANEL PUNTED SAYING IT DECIDED TO PUT OUR PERSONAL DIFFERENCES ASIDE AND SUPPORT THE BASIC THRUST OF MR CLINTON'S PLAN WHICH ALSO DOESN'T ELIMINATE THE DEFICIT 9303170132 930317 DOWN THE UP ESCALATOR WHY SOME WORKERS ARE FALLING BEHIND WHITECOLLAR BLUES LIKE FACTORY WORKERS PROFESSIONALS FACE LOSS OF JOBS TO FOREIGNERS AMERICAN FIRMS ARE HIRING HIGHLY SKILLED PEOPLE ABROAD FOR LOWER PAY A WAY TO SPUR SALES OVERSEAS BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL WALTER KRUZ IS MORE THAN QUALIFIED TO WORK AT INTEL CORP'S NEWEST CHIPMAKING PLANT HE HAS A MASTER'S DEGREE IN ELECTRICAL ENGINEERING A BACHELOR'S IN PHYSICS AND 20 YEARS' EXPERIENCE IN THE BOOMING SEMICONDUCTOR INDUSTRY MOREOVER HE LIVES ONLY A SHORT DRIVE FROM THE INTEL HOME OFFICE IN SANTA CLARA CALIF BUT MR KRUZ WHO LAST SUMMER WAS LAID OFF FROM HIS 75000AYEAR POSITION AT A LOCKHEED CORP UNIT HAS NO HOPE OF A JOB AT THE NEW INTEL PLANT THAT'S BECAUSE IT IS IN IRELAND AND IS HIRING ONLY IRISH ENGINEERS AT IRISH WAGES INTEL'S INTEREST IN BARGAINPRICED ENGINEERS REFLECTS A LITTLENOTICED BUT OMINOUS TREND THE PROFESSIONAL CLASS IN AMERICA IS FACING THE SAME KIND OF JOB EROSION FROM GLOBAL COMPETITION AS THE WORKING CLASS THOUGH IT IS NOT YET AS SEVERE US COMPANIES ARE INCREASINGLY HIRING HIGHLY SKILLED WORKERS IN ASIA THE FORMER SOVIET BLOC AND EUROPE TO PERFORM JOBS ONCE RESERVED FOR AMERICAN PROFESSIONALS OR THEY ARE TEMPORARILY IMPORTING THESE FOREIGN PROFESSIONALS TO TACKLE DEMANDING TASKS IN THE US TEXAS INSTRUMENTS INC CHASE MANHATTAN CORP INTERNATIONAL BUSINESS MACHINES CORP AND SCORES OF OTHER COMPANIES HAVE CONTRACTED WITH INDIANS ISRAELIS AND OTHER FOREIGNERS TO WRITE COMPUTER PROGRAMS FILM AND TV PRODUCERS INCREASINGLY BRING IN FOREIGN FILM PROFESSIONALS TO KEEP COSTS DOWN AND AMERICAN TELEPHONE & TELEGRAPH CO DU PONT CO HEWLETTPACKARD CO AND OTHERS HAVE MOVED BUSINESS UNITS ABROAD ALONG WITH HUNDREDS OF HIGHPAYING MANAGERIAL AND RESEARCH JOBS THE HIRING OF FOREIGN PROFESSIONALS ISN'T ALWAYS A MONEYSAVING MOVE FOR US COMPANIES WANTING TO EXPAND ABROAD JUST AS FOR FOREIGN COMPANIES WANTING TO ENTER THE US IT IS OFTEN CONSIDERED GOOD STRATEGY TO HIRE PEOPLE NATIVE TO THE TARGET MARKET BUT IN A GROWING NUMBER OF CASES MONEY IS THE ISSUE AND SOME FIND THIS ALARMING THE SURVIVAL OF THE AMERICAN PROFESSIONAL IS AT STAKE SAYS STEWART PERSONICK AN ACTIVE MEMBER OF THE INSTITUTE OF ELECTRICAL AND ELECTRONICS ENGINEERS AND AN ASSISTANT VICE PRESIDENT AT BELLCORE THE RESEARCH ARM OF THE REGIONAL TELEPHONE COMPANIES ALREADY SOME PEOPLE ARE HAVING TROUBLE FINDING WORK OR THEY ARE RECEIVING LESS PAY OR WORKING HARDER FOR THE SAME MONEY THE AVAILABILITY OF LOWPAID PROFESSIONALS IN MALAYSIA HUNGARY CHINA INDIA AND ELSEWHERE CALLS INTO QUESTION THE IDEA POPULAR IN THE CLINTON ADMINISTRATION THAT US WORKERS CAN RAISE THEIR OWN WAGES OR JOB PROSPECTS BY ACQUIRING MORE SKILLS A PROFESSIONAL CAN HAVE HIS SKILLS MOVED AROUND THE WORLD VERY EASILY TODAY SO HE OUGHT TO FEEL EVEN LESS COMPLACENT THAN A LOWSKILLED PERSON WHOSE JOB MAY BE TIED TO A LOCALE SAYS WILLIAM J SCHROEDER VICE CHAIRMAN OF CONNER PERIPHERALS INC A MAKER OF COMPUTER DISK DRIVES IT'S SCARY SAYS HILARY PENNINGTON WHO HAS ADVISED PRESIDENT CLINTON ON LABOR ISSUES AND HEADS JOBS FOR THE FUTURE A MASSACHUSETTS FIRM THAT PROMOTES TRAINING AND APPRENTICESHIP PROGRAMS THE FACT THAT PROFESSIONAL STATUS INCREASINGLY DOESN'T OFFER CLEAR PROTECTION AGAINST FOREIGN COMPETITION IS SOMETHING THAT HAS TO HAUNT THE ADMINISTRATION SAYS MS PENNINGTON STILL SHE SAYS US WORKERS MUST ACQUIRE HIGHER SKILLS EVEN WITHOUT ANY GUARANTEES THE FOREIGN COMPETITION DOESN'T AFFECT ALL TYPES OF PROFESSIONALS AND TO BE SURE PROFESSIONALS AS A GROUP CERTAINLY DO REMAIN A PRIVILEGED PART OF THE US WORK FORCE THE NUMBER OF HIGHSKILL JOBS LOST OVERSEAS IS STILL SMALL COMPARED WITH THOSE LOST IN BLUECOLLAR AND ROUTINE SERVICE WORK WHILE AMERICANS OF HIGH SKILL USUALLY STAND THE BEST CHANCE OF GETTING AND KEEPING GOOD JOBS ON THE WHOLE US TRADE EXPERIENCE STRONGLY SUGGESTS THAT THE TYPES OF JOBS THAT GO OVERSEAS ARE THE BLUECOLLAR JOBS WHILE MORE HIGHLY SKILLED JOBS COME INTO THE US SAYS LAWRENCE KATZ AN ECONOMIST AT HARVARD UNIVERSITY IT HELPS THAT FOREIGN COMPANIES HAVE LONG LOOKED TO THE US FOR CERTAIN KINDS OF PROFESSIONAL EXPERTISE ESPECIALLY IN SCIENCE DESIGN MARKETING AND ADVERTISING THIS HIRING ACCOUNTS FOR ONLY A SMALL FRACTION OF US PROFESSIONAL JOBS BUT IT IS LIKELY TO GROW AND TO OFFSET SOME OF THE LOSS OF AMERICAN JOBS TO PROFESSIONALS OVERSEAS IN RECENT YEARS FOR EXAMPLE LEADING JAPANESE COMPANIES HAVE OPENED DOZENS OF RESEARCH FACILITIES IN THE US IN ALL FOREIGNOWNED BUSINESSES EMPLOY 47 MILLION PEOPLE IN THE US OR 52 OF US EMPLOYMENT WHILE MOST JAPANESE AND EUROPEAN COMPANIES FOR YEARS HAVE SEEN THE BENEFIT OF EMPLOYING US PROFESSIONALS HERE MANY LEADING US COMPANIES ARE ONLY NOW BEGINNING TO DISPLAY A SIMILAR APPETITE FOR FOREIGN PROFESSIONALS WORKING IN THEIR HOME COUNTRIES CONSIDER CASES SUCH AS AT&T MINNESOTA MINING & MANUFACTURING CO AND BOEING CO AT&T EMPLOYS HUNDREDS OF PROFESSIONALS OVERSEAS UP FROM VIRTUALLY NONE A FEW YEARS AGO AND COMPANY OFFICIALS EXPECT THE NUMBER TO RISE SHARPLY THERE IS A LOT OF PLANNING GOING ON TO INCREASE THE NUMBER OF FOREIGN NATIONALS WHO ARE HIRED TO WORK IN THEIR HOME COUNTRIES SAYS FRANK JOHNSON WHO MANAGES PROFESSIONAL RELATIONS FOR AT&T AS YOU GET INTO THE INTERNATIONAL MARKET THERE'S MORE VALUE IF YOU CAN GET PROFESSIONALS WORKING IN THEIR HOME COUNTRIES MINNESOTA MINING SAYS IT IS HIRING FOREIGN PROFESSIONALS ABROAD AT A MUCH FASTER PACE THAN IN THE US LARGELY IN EMERGING SERVICES RELATED TO PRODUCT DEVELOPMENT AND CUSTOMER SUPPORT IT IS EVEN RECRUITING FOREIGN COLLEGE STUDENTS FOR PROFESSIONAL WORK IN THEIR HOME COUNTRIES AS ITS BUSINESS BECOMES MORE INTERNATIONAL IT EXPECTS THE NUMBER OF FOREIGN PROFESSIONALS TO GROW SUBSTANTIALLY CERTAINLY THIS IS A SIGNIFICANT CHANGE FROM THE HIRING PATTERN OF FIVE YEARS AGO SAYS ROGER W LINDER 3M'S DIRECTOR OF STAFFING AS BOEING THINS THE RANKS OF ITS US ENGINEERS THE AEROSPACE GIANT IS SHIFTING PROFESSIONAL DESIGN AND ENGINEERING WORK ABROAD A FEW YEARS AGO BOEING HIRED THROUGH A SUBCONTRACTOR 300 JAPANESE ENGINEERS FOR ITS BIGGEST AIRPLANE PROJECT THE 777 THEN LAST YEAR BOEING SAID IT PLANNED TO HIRE HUNDREDS OF ENGINEERS IN TAIWAN AND RUSSIA BOEING SAYS HIRING PROFESSIONALS IN FOREIGN COUNTRIES IS AIMED AT HELPING SELL PLANES THERE WE'RE CERTAINLY NOT DOING IT FOR LOW WAGES SAYS LAWRENCE CLARKSON VICE PRESIDENT FOR INTERNATIONAL DEVELOPMENT HE SAYS THE COMPANY DOESN'T INTEND TO ROUTINELY CEDE PROFESSIONAL JOBS TO FOREIGN BUYERS OF ITS AIRCRAFT BUT BOEING'S PROFESSIONALS AREN'T REASSURED DAN HARTLEY PRESIDENT OF A UNION REPRESENTING BOEING'S 28000 PROFESSIONALS SAYS THE COMPANY USED TO SEND ITS PEOPLE ABROAD TO WORK BUT MORE AND MORE FOREIGN ENGINEERS NOW COME HERE TO LEARN AND THEN GO BACK IN THE LONG RUN THAT CAN'T HELP US HE SAYS CONNER PERIPHERALS ILLUSTRATES A MORE TYPICAL REASON FOR HIRING FOREIGN PROFESSIONALS LOCKED IN A COMPETITIVE STRUGGLE TO BUILD INCREASINGLY SOPHISTICATED COMPUTER STORAGE DRIVES AT LOWER AND LOWER PRICES CONNER MUST KEEP DOWN ITS LABOR COSTS THE COMPANY CONTINUES TO USE ONLY US TALENT TO DESIGN PRODUCTS BUT IT HAS SHIFTED VIRTUALLY ALL ITS MANUFACTURING TO ASIA AT FIRST US ENGINEERS ENSURED THE SMOOTH RUNNING OF THESE FOREIGN FACTORIES BUT CONNER INCREASINGLY USES FOREIGN ENGINEERS WHOM IT PAYS AS LITTLE AS ONEQUARTER WHAT IT PAYS US ENGINEERS AS RECENTLY AS THREE YEARS AGO CONNER EMPLOYED ALMOST NO ENGINEERS ABROAD TODAY 200 OF ITS 675 ENGINEERS ARE SINGAPOREANS SERVING FACTORIES IN SINGAPORE AND MALAYSIA THE LOWER COST AND RISING COMPETENCE OF ASIAN ENGINEERS MEANS CONNER'S RELIANCE ON THEM IS LIKELY TO GROW SAYS MR SCHROEDER THE COMPANY'S VICE CHAIRMAN HE CONCEDES THAT THIS CHANGE IS HARD ON SOME OF THE AMERICANS CONNER EMPLOYS SOME ARE TRAINING ENGINEERS OVERSEAS KNOWING THEIR JOBS WILL SHIFT ABROAD HE SAYS FOREIGN PROFESSIONALS ARE BECOMING MORE ATTRACTIVE JUST AS DEMAND FOR SOME US PROFESSIONALS NOTABLY SCIENTISTS AND ENGINEERS IS AT ITS LOWEST IN AT LEAST A DECADE THE NUMBER OF ELECTRICAL ENGINEERS EMPLOYED IN THE US FOR INSTANCE HAS FALLEN BY ONEFIFTH SINCE ITS PEAK THREE YEARS AGO GIVEN THE EMPLOYMENT PICTURE SOME PROFESSIONALS ARE IRKED TO SEE SOME US COMPANIES TRAINING FOREIGN PROFESSIONALS HERE WHILE REJECTING AMERICANS FOR JOBS BECAUSE THEY LACK REQUIRED TRAINING THE EMPLOYER RIGHT NOW DOESN'T WANT TO GIVE A NEW US EMPLOYEE ANY TIME ON THE JOB FOR LEARNING CONTENDS MICHAEL PICCARDO AN UNEMPLOYED ENGINEER IN SUNNYVALE CALIF MANY FOREIGN PROFESSIONALS EVEN IN DEVELOPING COUNTRIES ARE WELL PREPARED TO TACKLE EXACTING JOBS AS THE EXPERIENCE OF KOMAG INC ILLUSTRATES KOMAG A MILPITAS CALIF MAKER OF EXOTIC MATERIALS USED IN COMPUTER STORAGE DEVICES HAS DECIDED TO OPEN A PLANT IN MALAYSIA RATHER THAN EXPAND ITS CALIFORNIA FACTORY EXPRESSLY BECAUSE WAGES FOR BOTH PROFESSIONALS AND PRODUCTION WORKERS ARE LOWER THERE INDEED WILLARD KAUFMAN CHIEF FINANCIAL OFFICER SAYS THAT IF DEMAND FOR KOMAG'S PRODUCTS WEREN'T GROWING ITS US PROFESSIONALS MIGHT BE GETTING PINK SLIPS EVEN AS OTHERS ARE ADDED OVERSEAS ALL OF THE 40 MALAYSIAN MANAGERS AND ENGINEERS KOMAG HAS HIRED TO RUN ITS PLANT SCHEDULED TO OPEN THIS YEAR SPEAK ENGLISH AND HOLD ACADEMIC DEGREES AMONG THEM TWO DOCTORATES NO US SUPERVISORS OR ENGINEERS WILL ASSIST AT THE PLANT THE KOMAG EXECUTIVE IN CHARGE OF IT IS A MALAYSIAN NATIVE WHO HAS SPENT THE PAST TWO DECADES WITH US COMPANIES WE CAN SOLVE ALL THE ENGINEERING PROBLEMS WE'LL FACE ON OUR OWN SAYS THE EXECUTIVE THIAN HOO TAN AND THE MALAYSIANS WILL DO IT FOR ROUGHLY ONETHIRD THE PAY OF THEIR US COUNTERPARTS FOREIGN PROFESSIONALS HAVE NO ILLUSIONS ABOUT WHY US COMPANIES FIND THEM SO APPEALING WE'RE CHEAPER SAYS LEONARD HOBBS ONE OF INTEL'S IRISH ENGINEERS IN AMERICA YOUR STANDARD OF LIVING IS JUST GETTING TOO HIGH IN IRELAND THE UNEMPLOYMENT RATE IS HIGHER AND PEOPLE ARE HUNGRY TO DO THE JOB IRELAND'S UNEMPLOYMENT RATE EXCEEDS 20 BESIDES HIRING PROFESSIONALS OFFSHORE US COMPANIES ARE IMPORTING INCREASING NUMBERS OF FOREIGN PROFESSIONALS TO WORK TEMPORARILY IN THE US IT IS RELATIVELY EASY FOR US COMPANIES TO BRING THEM IN FOR PERIODS OF AS LONG AS A FEW YEARS FEW LIMITS ARE PLACED ON A COMPANY'S ABILITY TO EMPLOY A FOREIGNER IN THE US PROVIDED HE OR SHE HAS SPECIALIZED SKILLS WHETHER IN NURSING OR CINEMATOGRAPHY OR SCIENCE A COMPANY SIMPLY FILES A PETITION WITH US AND JUST SAYS THEY WANT TO BRING THEM IN EXPLAINS LARRY WEINIG AN OFFICIAL OF THE IMMIGRATION AND NATURALIZATION SERVICE THE NUMBER OF APPLICATIONS TO BRING IN FOREIGN PROFESSIONALS HAS NEARLY DOUBLED TO MORE THAN 100000 ANNUALLY OVER THE PAST FIVE YEARS US EMPLOYERS ARE HIRING A GROWING NUMBER OF FOREIGN PROFESSIONALS WHO ENTER THE US AS BUSINESS TRAVELERS AND RECEIVE PAYMENT IN THEIR HOME COUNTRY FOR TEMPORARY WORK HERE AN ILLEGAL PRACTICE SAYS MR WEINIG HE SAYS HE HOPES THAT THROUGH BETTER SCREENING AROUND THE WORLD US EMBASSIES CAN AT LEAST HOLD THE LINE ON THIS ABUSE FOREIGN PROFESSIONALS ALSO COME TO THE US TO GET TRAINING HEWLETTPACKARD BRINGS AN UNDISCLOSED NUMBER OF CHINESE ENGINEERS IN EACH YEAR FOR TRAINING BUT THE TRAINEES DO WORK TO EASE THE CRUNCH AT PEAK TIMES OFTEN FOREIGN TRAINEES FIND THAT THEIR EXPERIENCE IS A PRELUDE TO FULLTIME EMPLOYMENT IN THEIR NATIVE COUNTRY BOEING TRAINED ITS JAPANESE ENGINEERS IN THE US HAVING THEM WORK ALONGSIDE AMERICANS KOMAG AND INTEL DID THE SAME WITH FOREIGNERS IT ASSIGNED TO OVERSEAS PLANTS THEN THERE ARE THE HOLLYWOOD PEOPLE DISPLACED BY FOREIGNERS US CINEMATOGRAPHERS THE PEOPLE WHO SHOOT MOVIES TYPICALLY EARN HIGH SIXFIGURE SALARIES BUT LATELY ALL THE MOVIES I WANT TO SHOOT ARE STAFFED BY FOREIGNERS SAYS ROBBIE GREENBERG A LOS ANGELES CINEMATOGRAPHER WHO ESTIMATES HIS INCOME HAS FALLEN 50 BECAUSE OF THE INFLUX US EMPLOYERS AREN'T ALWAYS THE INITIATORS OF THESE ARRANGEMENTS SOME FOREIGN PROFESSIONALS PRICE THEIR SERVICES DIRECTLY TO US CUSTOMERS OUR ARGUMENT TO A US COMPANY IS THAT YOU CAN CONTINUE TO USE US PROGRAMMERS BUT YOUR BUSINESS MAY END UP BEING UNCOMPETITIVE SAYS CHEEPUN WONG OF COMPUTER SYSTEMS ADVISERS GROUP A SINGAPOREAN COMPANY THAT STARTED BIDDING ON US BUSINESS TWO YEARS AGO MOSTLY FOREIGN COMPUTER CONSULTANTS WORK ON OLDER SYSTEMS WHERE PROGRAMMING IS ROUTINE BUT EVEN THE LOSS OF THESE UNGLAMOROUS PROJECTS HURTS NOTES F WILLIAM GUERIN WHO HEADS MARATHON SYSTEMS A SAN FRANCISCO CONSULTANCY RECENTLY ACED OUT OF SUCH WORK BY AN INDIAN CONTRACTOR FOR US CONSULTANTS HE SAYS THE ONLY DEFENSE IS AN ABILITY TO TACKLE THE MOST DIFFICULT PROBLEMS BECAUSE I CAN'T TOUCH MY FOREIGN COMPETITORS ON COST 9303170131 930317 WHO'S NEWS FEDERAL NATIONAL MORTGAGE ASSOCIATION FEDERAL NATIONAL MORTGAGE ASSOCIATION WASHINGTON ROBERT B ZOELLICK 39 YEARS OLD WILL BECOME EXECUTIVE VICE PRESIDENT GENERAL COUNSEL AND CORPORATE SECRETARYDESIGNATE HE WILL SUCCEED CARYL S BERNSTEIN WHO RETIRES JUNE 30 MR ZOELLICK MOST RECENTLY WAS DEPUTY CHIEF OF STAFF AT THE WHITE HOUSE IN THE BUSH ADMINISTRATION FROM AUGUST 1992 TO JANUARY 1993 FEDERAL NATIONAL OR FANNIE MAE INVESTS IN HOME MORTGAGES 9303170130 930317 TUESDAY'S MARKETS STOCK PRICES FINISH MIXED BONDS ADVANCE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED IN NERVOUS TRADING AS INVESTORS AWAITED TODAY'S STATISTICS ON INFLATION BOND PRICES ROSE AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE ROSE 054 POINT TO 344295 STANDARD & POOR'S 500STOCK INDEX FELL 006 TO 45137 AND THE NASDAQ COMPOSITE INDEX GAINED 026 TO 69547 INFLATION FEARS HAVE WEIGHED ON THE MARKET SINCE FRIDAY WHEN INVESTORS LEARNED OF FEBRUARY'S INCREASE IN PRODUCER PRICES THOSE CONCERNS INTENSIFIED AS A SEVERE STORM DURING THE WEEKEND CAUSED SOME COMMODITY PRICES TO RISE MANY INVESTORS SAT OUT YESTERDAY'S SESSION TO AWAIT TODAY'S RELEASE OF FEBRUARY'S CONSUMER PRICE INDEX EVERY TIME INFLATION TALK REARS ITS UGLY HEAD INVESTORS TEND TO TAKE THEIR TIME BEFORE THEY ACT SAID ALAN R ACKERMAN MARKET STRATEGIST AT REICH & CO WHETHER OR NOT THE FEARS ARE JUSTIFIED INVESTORS WOULD RATHER PLAY IT SAFE FOR THE MOMENT OIL STOCKS SURGED ON THE INFLATION WORRIES OILS ARE A WAY TO PLAY HIGHER INFLATION MR ACKERMAN SAID IF TODAY'S REPORT QUIETS INFLATION TALK THE MARKET WILL FLY SAID ROBERT KAHAN SENIOR MANAGING DIRECTOR IN CHARGE OF TRADING AT MONTGOMERY SECURITIES IN SAN FRANCISCO IF NOT WE'RE IN FOR A DOWNDRAFT JIM COXON DIRECTOR OF US EQUITY INVESTMENTS AT KEMPER FINANCIAL SERVICES IN CHICAGO SAID THE STOCK MARKET MAY SUFFER IF INFLATION ACCELERATES AND ECONOMIC GROWTH SLOWS THE INGREDIENTS ARE THERE FOR THE WORST OF ALL WORLDS OUTRIGHT STAGFLATION WHICH IS AN UGLY SET OF CONDITIONS FOR STOCK INVESTORS MR COXON SAID IT'S ON OUR WATCH LIST BUT HE ADDED HE WON'T HOIST A BRIGHT RED WARNING FLAG UNLESS HE SEES FURTHER SIGNS OF AN ECONOMIC SLOWDOWN AND A SOFTENING OF CONSUMER DEMAND WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 030 TO 9790 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2177 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 955 ISSUES ROSE AND 945 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1/4 POINT OR OVER 250 FOR EACH 1000 FACE AMOUNT TO YIELD 687 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16640 MARKS AND 11700 YEN COMPARED WITH 16630 MARKS AND 11860 YEN MONDAY 9303170129 930317 WHO'S NEWS NATIONAL FUEL GAS CO NATIONAL FUEL GAS CO BUFFALO NY EUGENE T MANN 62 YEARS OLD WAS NAMED A DIRECTOR OF THIS HOLDING COMPANY FOR CONCERNS ENGAGED IN EXPLORATION PRODUCTION AND TRANSMISSION OF OIL & NATURAL GAS MR MANN IS A PRIVATE BUSINESS CONSULTANT AND A FORMER EXECUTIVE VICE PRESIDENT OF FLEET/NORSTAR FINANCIAL CORP HIS APPOINTMENT INCREASES THE SIZE OF THE COMPANY'S BOARD TO NINE MEMBERS 9303170128 930317 INSIDE TRACK MERRILL INSIDER MAKES BIG SALE AS STOCK SOARS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE STOCK OF MERRILL LYNCH & CO THE NATION'S LARGEST BROKERAGE FIRM HIT ITS HIGHEST PRICE IN ALMOST A DECADE ON MONDAY BUT ONE OF THE FIRM'S TOP EXECUTIVES THOMAS H PATRICK HEAD OF STOCK TRADING SOLD MOST OF HIS MERRILL LYNCH SHARES LAST MONTH HIS 66 MILLION SALE CAME BEFORE NEWS LAST WEEK THAT MERRILL WILL SOON HAVE A HUGE RIVAL NIPPING AT ITS HEELS THE NEWLY FORMED BROKERAGE GIANT SMITH BARNEY SHEARSON BUT THE BEARISH MOVE BY A MARKETSAVVY INSIDER RAISES A QUESTION HAS MERRILL LYNCH ONCE CONSIDERED THE BAROMETER OF THE BROKERAGE BUSINESS TOPPED OUT MR PATRICK SOLD 64 OF HIS HOLDINGS OR 100000 SHARES IN FOUR SALES IN FEBRUARY ACCORDING TO INSIDER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION MR PATRICK WHO WAS FORMERLY MERRILL'S CHIEF FINANCIAL OFFICER WAS OUT OF THE COUNTRY YESTERDAY AND UNAVAILABLE TO COMMENT ON HIS STOCK SALE MERRILL SAID MR PATRICK'S SALE REPRESENTED 25 OF HIS STAKE WHEN OPTIONS ARE INCLUDED HIS SHARES FETCHED AN AVERAGE PRICE OF 6593 EACH BELOW THE HIGH OF 73625 THAT MERRILL SHARES HIT MONDAY AND YESTERDAY'S CLOSE OF 73 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MERRILL'S STOCK HAS NEARLY DOUBLED IN ROUGHLY THE PAST NINE MONTHS A RUNUP FUELED BY HIGHERTHANEXPECTED EARNINGS AND A WAVE OF BULLISH ANALYST REPORTS LAST YEAR WAS MERRILL'S SECOND STRAIGHT YEAR OF RECORD EARNINGS THE COMPANY'S HUGE RESTRUCTURING LAUNCHED IN 1989 IS LARGELY VIEWED AS A SUCCESS AND MERRILL IS EXPECTED TO HIT THE MILESTONE OF 500 BILLION UNDER MANAGEMENT IN EARLY MAY STILL THE STOCK'S RUNUP MORE THAN THE THREAT POSED BY THE MEGAMERGER OF SMITH BARNEY HARRIS UPHAM & CO AND SHEARSON LEHMAN BROTHERS INC'S BROKERAGE BUSINESS HAS PROMPTED SOME ANALYSTS TO BACK AWAY FROM THE STOCK WERTHEIM SCHRODER & CO ANALYST JAMES HANBURY RECENTLY DOWNGRADED THE STOCK TO NEUTRAL FROM A BUY MERRILL IS IN THE NINTH QUARTER OF BOOMING RESULTS SAID MR HANBURY MY CONCERN IS WHEN DOES IT BECOME LESS TERRIFIC AND WHAT WILL DO IT IT WON'T BE THE NEW RIVAL WHICH IS SOMETHING OF A KNOWN COMMODITY ALREADY HE SAID BUT HIGHER INTEREST RATES BECAUSE OF LOW RATES MONEY IS FLOWING FROM BANKS AND THRIFTS TO BROKERS AND MUTUAL FUNDS BUT THOSE FLOWS COULD SLOW DOWN MR HANBURY SAID HE IS PREDICTING THAT 1993 EARNINGS WILL COME IN AT 7 A SHARE THAT'S WELL BELOW 1992'S LEVEL OF 834 A SHARE FIRST BOSTON SWITCHED TO A HOLD FROM A BUY ON MERRILL SHARES LAST FRIDAY WHEN THE STOCK WAS AT 7025 CITING ITS RUNUP AND CONCERNS THAT UNDERWRITING BUSINESS AND TRADING VOLUME WOULD FALL FROM 1992 LEVELS MERRILL LYNCH WAS A FAVORED PICK OF ANALYSTS IN 1992 WITH A HOST OF WALL STREETERS ASSIGNING A BUY RATING IN THE SPRING AND SUMMER OF LAST YEAR WHEN IT WAS TRADING AT ABOUT 50 A SHARE NOW MANY ANALYSTS SEE EARNINGS SLIPPING IN 1993 AND 1994 THEIR ESTIMATES FOR 1993 EARNINGS RANGE FROM 7 TO 725 A SHARE BUT NEW YORK MONEY MANAGER ERROL RUDMAN SEES MERRILL STOCK RISING EVEN FURTHER I THINK MERRILL LYNCH IS A COMPANY THAT'S BEING REAPPRAISED BY THE MARKETPLACE AND WILL SOON BE VIEWED AS MORE OF A STEADY GROWTH STOCK THAN IN THE PAST MANAGEMENT HAS IRONED OUT THE SHARP SWINGS IN EARNINGS THAT ONCE WERE A HALLMARK OF THE COMPANY HIS FIRM RUDMAN PARTNERS IS A MERRILL LYNCH SHAREHOLDER AND HE ISN'T TEMPTED TO TAKE PROFITS AT THIS LEVEL WHILE THE MELDING OF SMITH BARNEY AND SHEARSON WILL LIKELY BENEFIT THOSE FIRMS' BOTTOM LINES MOST OF THE INCREASED PROFITABILITY WILL COME FROM COSTCUTTING NOT THROUGH MARKET SHARE GAINS FROM OTHER BROKERS HE PREDICTED MR PATRICK'S STOCK SALE WAS PART OF A BROADER INDUSTRY TREND AS REPORTED EARLIER THE PACE OF INSIDER SELLING IN THE BROKERAGE INDUSTRY HAS RECENTLY ACCELERATED LATE LAST YEAR AND EARLY THIS YEAR INDUSTRY EXECUTIVES AND OTHER INSIDERS AT SALOMON BROTHERS INC AG EDWARDS INC RAYMOND JAMES FINANCIAL BEAR STEARNS COS PAINEWEBBER GROUP AND CHARLES SCHWAB TRIMMED THEIR HOLDINGS 9303170127 930317 WESTINGHOUSE PHILIPPINES SET TO BEGIN TRIAL OVER CHARGES OF BRIBES TO MARCOS BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL WESTINGHOUSE ELECTRIC CORP AND THE PHILIPPINE GOVERNMENT ARE SET TO BEGIN A TRIAL TODAY OVER ALLEGATIONS THAT THE PITTSBURGH COMPANY BRIBED FORMER PHILIPPINE PRESIDENT FERDINAND MARCOS IN THE EARLY 1970S TO WIN A NUCLEAR POWER PLANT CONSTRUCTION CONTRACT OFFICIALS FROM THE TWO SIDES WERE CONTINUING SETTLEMENT TALKS YESTERDAY AFTERNOON UNDERSCORING THAT BOTH SIDES HAVE STRONG REASONS TO AVOID THE TRIAL IN US DISTRICT COURT IN NEWARK NJ FOR WESTINGHOUSE THE CASE BRINGS UP UNSAVORY CHARGES AT A TIME WHEN THE COMPANY ALREADY HAS HAD A RUN OF BAD NEWS INCLUDING THE RESIGNATION IN JANUARY OF ITS CHIEF EXECUTIVE OFFICER PAUL LEGO UNDER BOARD PRESSURE FOR THE GOVERNMENT OF PHILIPPINE PRESIDENT FIDEL RAMOS IT FURTHER DELAYS OPERATION OF THE 605MEGAWATT PLANT WHICH WAS FINISHED IN 1985 BUT HASN'T BEEN SWITCHED ON AT A TIME WHEN THE COUNTRY HAS A SERIOUS POWER SHORTAGE AND THE BRIBERY CASE MAY BE TOUGH TO PROVE BOTH THE INTERNATIONAL CHAMBER OF COMMERCE AND THE US JUSTICE DEPARTMENT HAVE REVIEWED THE EVIDENCE WITHOUT REPORTING WRONGDOING BY WESTINGHOUSE YET THE DISPUTE WHICH WAS THOUGHT TO BE SETTLED LAST YEAR WHEN THE TWO SIDES REACHED A PRELIMINARY AGREEMENT IS ALSO ENTANGLED WITH PHILIPPINE POLITICS FILED IN 1988 BY MR RAMOS'S PREDECESSOR CORAZON AQUINO IT HAS BEEN CLOSELY WATCHED FOR THE SIGNALS IT SENDS ABOUT THE MARCOS ERA AND THE TREATMENT OF FOREIGN COMPANIES ONE STICKING POINT IN THE SETTLEMENT TALKS IS SAID TO BE THE PHILIPPINES' DESIRE FOR AN ADMISSION OF GUILT BY WESTINGHOUSE THE SUIT ALLEGES THAT WESTINGHOUSE ENCOURAGED A BUSINESSMAN AND MARCOS CONFIDANTE HERMINIO DISINI TO BE ITS MIDDLEMAN AND PASS BRIBES TO MR MARCOS THE PAYMENTS ALLEGEDLY ENSURED WESTINGHOUSE WOULD WIN A 1976 CONTRACT TO BUILD THE 21 BILLION PLANT SITUATED ON THE BATAAN PENINSULA WEST OF MANILA WESTINGHOUSE IS LIKELY TO TRY TO CONVINCE THE JURY THAT IT HIRED MR DISINI MERELY TO NEGOTIATE THE UNFAMILIAR THICKETS OF PHILIPPINE COMMERCE AND POLITICS DAVID BOIES A LAWYER WHO REPRESENTS WESTINGHOUSE SAID THE FIRM WILL ARGUE THAT ITS COMPETITORS USED SIMILAR AGENTS WHICH WERE THE ONLY WAY TO PRESENT PROPOSALS TO MR MARCOS LAWYERS FOR THE PHILIPPINES DECLINED TO COMMENT IN A PRETRIAL RULING JUDGE DICKINSON R DEBEVOISE SAID HE WOULD LIMIT DAMAGES TO THE AMOUNT OF THE ALLEGED BRIBES OR ABOUT 17 MILLION WHICH WALL STREET ANALYSTS SAY WOULDN'T AFFECT WESTINGHOUSE'S EARNINGS BUT THE JUDGE LEFT OPEN THE OPTION OF ALLOWING PUNITIVE DAMAGES WHICH COULD BE MUCH LARGER AFTER TRIAL ARGUMENTS THE TWO SIDES AGREED A YEAR AGO TO A PRELIMINARY SETTLEMENT UNDER TERMS THAT WOULD HAVE GIVEN WESTINGHOUSE 300 MILLION TO UPGRADE THE PLANT AND 40 MILLION PLUS A SHARE OF REVENUE TO OPERATE IT BUT THE SETTLEMENT BROKE DOWN AFTER THE PHILIPPINES CITED CONSULTANTS' FINDINGS THAT THE PLANT COULD BE REFITTED AND RUN MORE CHEAPLY BY OTHER FIRMS MR BOIES THE ATTORNEY FOR WESTINGHOUSE SAID THE SETTLEMENT FELL APART PARTLY BECAUSE MR RAMOS'S GOVERNMENT WHICH TOOK OFFICE JUNE 30 REJECTED SOME OF THE TERMS AGREED TO IN THE MARCH SETTLEMENT WESTINGHOUSE HAS ALSO CHALLENGED THE PHILIPPINES TO FIND ANOTHER COMPANY THAT COULD OPERATE THE PLANT SOONER OR MORE ECONOMICALLY THAN WESTINGHOUSE THE SUIT ALSO ALLEGES THAT BURNS & ROE ENTERPRISES INC AN ORADELL NJ FIRM THAT HELPED TO DESIGN THE PLANT PAID MR MARCOS AN ADDITIONAL 22 MILLION IN BRIBES BURNS AND ROE SAYS IT VIGOROUSLY DENIES THE ALLEGATIONS 9303170126 930302 AMERICA'S BEST INFRASTRUCTURE PROGRAM BY GEORGE GILDER WHEN THE DETHRONED KING OF HIGHYIELD BONDS MICHAEL MILKEN LEFT FOR PLEASANTON PRISON SOME TWO YEARS AGO THE CLAIMS OF HIS CRITICS INSPIRED HOLLYWOOD RULED BESTSELLER LISTS AND SEALED THE LEDGERS ON A SOCALLED DECADE OF GREED SO WHAT IS HAPPENING NOW JUST TWO YEARS LATER WHO IS THIS BALDING YOUNG MAN EMERGING THIS WEEK WITH A SMILE FROM HIS YEARS IN THE SLAMMER DESPITE HIS RECENT DIAGNOSIS OF TREATABLE PROSTATE CANCER MR MILKEN IS COMING OUT OF PRISON READY AGAIN TO TAKE ON THE WORLD AND LAUNCH A REVOLUTION IN EDUCATIONAL VIDEO SINCE HIS INCARCERATION THE ENTIRE CASE AGAINST HIM HAS COLLAPSED NEVER IN HISTORY HAS A WHITECOLLAR CRIMINAL BEEN SO LUMINOUSLY AND ELABORATELY VINDICATED DURING HIS YEARS IN JAIL MR MILKEN WAS DEMONSTRABLY ONE OF THE SUPREME INVESTORS IN THE HISTORY OF FINANCE AT A TIME WHEN THE AIR IS FULL OF TALK OF NEW INVESTMENT IN INFRASTRUCTURE WE CAN LEARN MUCH FROM MR MILKEN'S SUCCESSFUL FINANCING OF THE INFRASTRUCTURE FOR A NEW SERVICE ECONOMY MR MILKEN'S LARGEST COMMITMENT SOME 21 BILLION WAS TO THE INFORMATION INDUSTRY THE MOST IMPORTANT OF THESE FIRMS WERE MCI TELECOMMUNICATIONS INC TCI MCCAW CELLULAR TURNER BROADCASTING WARNER COMMUNICATIONS NOW TIMEWARNER TWENTIETH CENTURY FOX NOW PART OF NEWSCORP AND METROMEDIA BROADCASTING VIRTUALLY DEVOID OF CONVENTIONAL COLLATERAL NONE OF THESE COMPANIES COULD HAVE RAISED COMPARABLE SUMS FROM ANOTHER SOURCE TOGETHER THEY STAND OR FALL AS UNANSWERABLE EVIDENCE OF THE QUALITY OF MR MILKEN'S UNIQUE VISION AND CONTRIBUTION MR MILKEN'S 3 BILLION ENDOWMENT OF MCI'S BOLD DRIVE TO LAY A NATIONAL NETWORK OF LEADINGEDGE FIBEROPTIC LINES BEGAN AT A TIME WHEN MCI'S REVENUES WERE 234 MILLION AND CAME IN THE FACE OF AT&T'S PLANS TO DELAY COMPLETING ITS OWN SYSTEM UNTIL SOMETIME IN THE EARLY 21ST CENTURY NOT ONLY WAS MCI'S VENTURE A SUCCESS BUT IT ALSO SPURRED THE CREATION OF SEVERAL OTHER FIBER NETWORKS OVER THE NEXT FIVE YEARS AND SAVED CORNING'S 17YEAR INVESTMENT IN THE TECHNOLOGY MCI IS NOW WORTH SOME 11 BILLION CORNING 7 BILLION AND THESE WEBS OF GLASS AND LIGHT ARE TODAY AN ESSENTIAL RESOURCE OF AMERICA'S INFORMATION ECONOMY BECAUSE OF MR MILKEN'S HEAD START THE US HAS LAID ABOUT NINE TIMES AS MUCH FIBER AS JAPAN WHICH IN THE EARLY 1980S WAS THREATENING TO TAKE OVER FIBER PRODUCTION AND INSTALLATION JUST AS IMPORTANT TO AMERICA'S INFORMATION INFRASTRUCTURE AS FIBER OPTICS IS CABLE TV AS A TECHNOLOGY CABLE IS OFTEN UNDERESTIMATED BUT SOME 80 OF THE COST OF A TELECOMMUNICATIONS SYSTEM COMES IN THE LOCAL LOOP THE WEB OF NEIGHBORHOOD CONNECTIONS TO HOMES AND OFFICES THE CABLE INDUSTRY OFFERS TO ABOUT 90 OF AMERICA'S HOMES THE CHANCE TO LINK TO A NETWORK WITH SOME 70000 TIMES THE BANDWIDTH OF TELEPHONE WIRES WITH TELEVISION RAPIDLY BECOMING A BRANCH OF THE DIGITAL COMPUTER INDUSTRY THESE CABLE CONNECTIONS POTENTIALLY CAPABLE OF SUSTAINING BILLIONBITPERSECOND TWOWAY DATA HAVE BECOME A CRUCIAL COMPLEMENT TO THE FIBER LONGDISTANCE NETWORK WITHOUT THE VISION AND 12 BILLION COMMITMENT OF MICHAEL MILKEN TO AN ARRAY OF CABLE COMPANIES THIS HUGE RESOURCE OF BROADBAND COMMUNICATIONS COULD NOT HAVE BEEN LAID LACKING SUCH FINANCING AND TV ENTREPRENEURS EUROPE AND ASIA COMMAND NO COMPARABLE CABLE INFRASTRUCTURE WHEN MR MILKEN BEGAN FUNDING TCI WITH A STREAM OF INVESTMENTS TOTALING 814 MILLION IT WAS WORTH A FEW HUNDRED MILLION NOW IT COMMANDS A MARKET VALUE OF SOME 10 BILLION WITH RECENT ANNOUNCEMENTS OF MAJOR DIGITAL TV FIBER PROJECTS IN QUEENS NY AND ORLANDO FLA TIMEWARNER IS CHALLENGING TCI FOR THE TECHNOLOGICAL LEAD IN CABLE SAVED BY JUNK BONDS AT THE TIME OF ITS ATARI FIASCO WARNER TOO HAS BECOME AN IMPORTANT ASSET OF AMERICAN COMPETITIVENESS MR MILKEN'S CABLE INVESTMENTS HOWEVER WOULD NOT HAVE THRIVED WITHOUT INVESTMENT IN COMPLEMENTARY PROGRAMMING WHEN HE FUNDED TED TURNER'S CNN AND LAID THE FINANCIAL FOUNDATION FOR TNT THE TURNER ENTERPRISES WERE WORTH A FEW HUNDRED MILLION DOLLARS WHILE TURNING DOWN MR TURNER'S APPEAL FOR FUNDING FOR PURCHASE OF CBS ON THE CORRECT BELIEF THAT THE NETWORKS WERE IN DECLINE MR MILKEN FINANCED MR TURNER'S ACQUISITION OF MGM'S FILM LIBRARY AT THE SAME TIME HE HELPED FINANCE THE FOX NETWORK VIACOM AND LORIMAR THE CABLE AND PROGRAMMING COMPANIES SUPPORTED BY MR MILKEN NOW ARE WORTH MORE THAN 100 BILLION PERHAPS THE MOST VISIONARY MILKEN INVESTMENT WAS MCCAW CELLULAR WHEN MCCAW CELLULAR CAME TO MR MILKEN IN 1986 IT WAS A LOCALIZED CABLE AND CELLULAR COMPANY WITH SMALL PROFITS AND A LARGE APPARENTLY FOOLHARDY GOAL COMPETING WITH THE GIANT REGIONAL BELL OPERATING COMPANIES BY CREATING A NATIONAL NETWORK OF WIRELESS PHONES MR MILKEN RAISED SOME 125 BILLION FOR THE COMPANY AS WE ENTER AN ERA WHEN MOST TELEPHONES WILL BE WIRELESS MCCAW TOGETHER WITH LIN BROADCASTING WAS VALUED IN THE RECENT AT&T EQUITY PURCHASE AT SOME 11 BILLION AND CRAIG MCCAW SPECULATES IN FORBES ABOUT THE POSSIBILITY OF TAKING OVER AT&T MR MILKEN ALSO FUNDED AN ARRAY OF IMPORTANT COMPANIES IN OTHER FIELDS AMONG THE FAMOUS FAILURES SUCH AS KINDERCARE AND INTEGRATED RESOURCES WERE A SERIES OF PHENOMENAL SUCCESSES AMONG THEM ARE MEDCO VALUED AT 35 MILLION WHEN MR MILKEN BEGAN LENDING TO IT AND NOW VALUED AT 45 BILLION IN INEXPENSIVE MAILORDER PHARMACEUTICALS BARNES & NOBLEB DALTON NOW THE NATION'S LARGEST BOOKSELLER HASBRO THE WORLD'S LARGEST TOY MAKER CIRCUS CIRCUS AND MIRAGE RESHAPING THE SKYLINE AND BRINGING FAMILY THEMES TO LAS VEGAS RESORTS CHRYSLER AND AMERICAN MOTORS AND TLCBEATRICE THE INTERNATIONAL FOOD CONGLOMERATE THAT WAS THE SOURCE OF THE NATION'S LARGEST BLACK FORTUNE IT WAS OWNED BY THE LATE REGINALD LEWIS A CLOSE MILKEN ASSOCIATE NOW MANY OF MR MILKEN'S INVESTMENTS ARE HOUSEHOLD NAMES AND IN RETROSPECT SEEM OBVIOUS WINNERS BUT AT THE TIME MR MILKEN WAS BITTERLY ASSAULTED IN THE FINANCIAL PRESS FOR NEARLY ALL HIS MAJOR DEALS WHEN HE BEGAN FINANCING TAKEOVERS THE HOSTILITY REACHED A HYSTERICAL PITCH AND POLITICIANS AND PROSECUTORS ENTERED THE FRAY YET THE MOST REVILED VENTURES OFTEN YIELDED THE BEST RESULTS ONE UNSUCCESSFUL RAID ON DISNEY BY SAUL STEINBERG GALVANIZED A RESTRUCTURING OF THE COMPANY THAT INCREASED ITS WORTH ELEVENFOLD IN ESSENCE THESE TAKEOVERS OF THE 1980S REVERSED THE DISASTROUS CONGLOMERATE MOVEMENT OF THE 1970S LISTENING TO THE LAMENTS OF ENTRENCHED MANAGEMENT HOWEVER THE COURTS AND CONGRESS FINALLY ACTED TO BRING THE ENTIRE MOVEMENT TO AN ABRUPT HALT BY ENACTING THE ORWELLIAN FINANCIAL INDUSTRIES REFORM AND RECOVERY ACT FIRREA AND OTHER LEGISLATION THAT FORCED SAVINGS AND LOANS BANKS AND INSURANCE COMPANIES TO SELL OFF THEIR HIGHYIELD SECURITIES UNDER THIS ASSAULT THE MARKET FINALLY CRASHED IN 1989 AND MR MILKEN'S CRITICS WERE SURE THAT THE BONDS WOULD NEVER REVIVE INDEED MANY ANALYSTS WARNED THAT IN A RECESSION SUCH HIGHLY LEVERAGED FIRMS AS MCCAW TCI AND NEWSCORP WOULD GO BANKRUPT THE RECESSION CAME ON SCHEDULE BUT FOR TWO YEARS IN A ROW HIGHYIELD BONDS LED BY MR MILKEN'S HAVE BEEN AMERICA'S BEST FIXEDINCOME INVESTMENT WHILE INVESTORS IN BLUECHIP IBM LOST SOME 70 BILLION IN MARKET VALUE IN FIVE YEARS HOLDERS OF SOCALLED JUNK GAINED 100 BILLION ECONOMIST GLENN YAGO HAS DEMONSTRATED THAT IF THE RELATIVELY FEW S&LS WITH LARGE JUNK POSITIONS HAD BEEN ALLOWED TO KEEP THEM THEY WOULD HAVE EARNED HUNDREDS OF MILLIONS ON THEIR HOLDINGS AND WOULD HAVE IMPOSED NO COSTS ON THE GOVERNMENT FOR EXAMPLE THE WEST COAST COLUMBIA SAVINGS & LOAN WOULD HAVE MADE ABOUT 1 BILLION ON ITS JUNK PORTFOLIO AND REMAINED IN BUSINESS AT NO COST TO THE FEDERAL GOVERNMENT IN 1993 WE CAN SAY THAT MICHAEL MILKEN'S PORTFOLIO OF COMPANIES BOTH DEBT AND EQUITY HAS FULLY VINDICATED HIM HIS ALLEGED INFRACTIONS OF PARKING CODES AND SUCH SEEM UTTERLY PICAYUNE BESIDE HIS MONUMENTAL CONTRIBUTIONS TO THE NATION'S WEALTH WELLBEING AND COMPETITIVENESS THE MAN WHOSE INDEFATIGABLE SERVICES TO HIS COMMUNITY EXCEEDED ALL OTHERS DURING THE 1980S FINDS HIMSELF BOUND TO PERFORM 5400 HOURS OF SOCALLED COMMUNITY SERVICE UNDER THE SUPERVISION OF SOCIAL WORKERS AMERICA DOES NOT NEED FEDERAL BOONDOGGLES DISGUISED AS SOCIAL SPENDING OR INVESTMENTS IN INFRASTRUCTURE MR MILKEN HAS ALREADY FINANCED THE KEY COMPONENTS OF AMERICA'S INFRASTRUCTURE FOR THE INFORMATION AGE TO CONSUMMATE HIS VISION IT IS NOW NECESSARY FOR THE GOVERNMENT TO GET OUT OF THE WAY AND ALLOW THESE PRIVATE FIRMS TO COLLABORATE IN LINKING THE SEPARATE NETWORKS THAT MR MILKEN HELPED CREATE DURING THE 1980S' DECADE OF ENTERPRISE MR GILDER IS A FELLOW AT SEATTLE'S DISCOVERY INSTITUTE HIS LATEST BOOKS ARE LIFE AFTER TELEVISION WW NORTON AND RECAPTURING THE SPIRIT OF ENTERPRISE ICS PRESS SEE RELATED LETTERS LETTERS TO THE EDITOR DON'T COUNT CHICKENS WHEN THEY'RE STILL EGGS WSJ MARCH 16 1993 9303020079 9303170125 930317 MUTUAL FUNDS SEC WILL PROPOSE LOOSER RULES ON MARKETING MUTUAL FUNDS BY CHRISTI HARLAN AND JONATHAN CLEMENTS STAFF REPORTERS OF THE WALL STREET JOURNAL BUYING A MUTUAL FUND COULD SOON GET AS EASY AS LEAFING THROUGH THE NEWSPAPER ADS OR RESPONDING TO A PIECE OF JUNK MAIL THAT AT LEAST IS THE PLAN OF THE SECURITIES AND EXCHANGE COMMISSION WHICH TOMORROW WILL UNVEIL FOR PUBLIC COMMENT A PROPOSED OVERHAUL OF ITS RULES GOVERNING MUTUALFUND ADVERTISING THE BIG SURPRISE IN THE SEC'S PROPOSAL FUND COMPANIES WOULD BE ABLE TO SELL FUNDS BY MAIL WITHOUT FIRST FURNISHING THE FORMAL OFFERING DOCUMENT KNOWN AS THE PROSPECTUS MOST FUND EXECUTIVES HADN'T EXPECTED THE SALEBYDIRECTMAIL PLAN TO BE ALLOWED WHAT THEY DID EXPECT CORRECTLY IS THAT NEWSPAPER AND MAGAZINE ADS WOULD BE ALLOWED TO OFFER FUNDS FOR SALE TO INVESTORS WHO HADN'T FIRST SEEN A PROSPECTUS UNDER THIS PROVISION OF THE NEW RULES INVESTORS ALSO WOULD BE ABLE TO SEND A CHECK WITHOUT FIRST SEEING THE PROSPECTUS SEC CHAIRMAN RICHARD BREEDEN IS EAGER TO DISPEL ANY NOTION THAT THE MAILORDER SALES MIGHT SOMEHOW IMPERIL NAIVE SMALL INVESTORS INVESTORS WON'T BE SEEING WILD CLAIMS ABOUT FUND PERFORMANCES SAYS MR BREEDEN A HOLDOVER FROM THE BUSH ADMINISTRATION I THINK YOU'RE MORE LIKELY TO SEE SOME FAIRLY DULL ADVERTISEMENTS HE PREDICTS THE FUNDS ARE GOING TO HAVE TO INCLUDE SPECIFIC INFORMATION THE ONLY FUNDS ELIGIBLE FOR SALE UNDER THE EXPANDED ADVERTISING RULES WOULD BE THOSE THAT HAVE BEEN REGISTERED WITH THE SEC FOR TWO YEARS OR LONGER THESE WON'T BE NEW FUNDS MR BREEDEN SAID THESE ARE FUNDS WITH A TRACK RECORD THE EXPANDED ADVERTISING HORIZON WILL GIVE A BOOST TO NOLOAD AND LOWLOAD FUNDS WHICH SELL SHARES TO THE PUBLIC WITH LITTLE OR NO SALES CHARGE UNDER CURRENT REGULATIONS SUCH FUNDS DO ADVERTISE IN NEWSPAPERS BUT A WOULDBE INVESTOR HAS TO REQUEST A PROSPECTUS BEFORE A SALE CAN TAKE PLACE THE NOLOADS HAVE COMPLAINED THAT THIS IS UNFAIR BECAUSE RIVAL FUNDS ARE MARKETED THROUGH COMMISSIONED BROKERS WHO CAN SELL A MUTUAL FUND OVER THE PHONE AND MAIL A PROSPECTUS TO THE INVESTOR ALONG WITH THE CONFIRMATION OF THE SALE THE NEW REGULATIONS WILL SHORTEN THE TURNAROUND TIME BY ALLOWING INVESTORS TO READ AN AD FOR A DIRECTMARKETED FUND AND MAIL IN A CHECK BUT THE ADS WILL BE HEAVY ON VERBIAGE THE FUNDS WILL HAVE TO DISCLOSE ANY FEES OR EXPENSES INVOLVED HISTORIC PERFORMANCE DATA INVESTMENT RISKS POLICIES ON DIVIDENDS AND DISTRIBUTIONS TAX CONSEQUENCES AND REDEMPTION PROCEDURES BY EXPANDING THE PERMITTED ADVERTISING TO INCLUDE DIRECT MAIL THE SEC WOULD ALLEVIATE CONCERNS OF SOME SMALLER MUTUAL FUNDS THAT SAY THEY CAN'T AFFORD NEWSPAPER ADS THE PROBLEM WITH LIMITING IT TO NEWSPAPERS AND MAGAZINES IS THAT IT MAKES IT ONLY AVAILABLE TO THE LARGEST FUNDS SEC COMMISSIONER RICHARD ROBERTS SAID YESTERDAY THE SEC WILL REQUIRE THAT ADVERTISEMENTS AND DIRECTMAIL LITERATURE BE FILED AND CLEARED BEFORE PUBLICATION WITH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS OR FOR NONNASD MEMBERS THE SEC ITSELF IF FUNDS LIVE UP TO THE AD REGULATIONS FOR A FULL YEAR THE FILING RULE WILL BE RELAXED TO ALLOW THEM TO FILE ADS WITHIN THREE DAYS BEFORE OR AFTER PUBLICATION MR BREEDEN SAID DIRECT SALES FROM ADS WERE FIRST SUGGESTED BY THE SEC STAFF 10 MONTHS AGO FINAL RULES FOR THE ADVERTISEMENTS TO BE SET OUT TOMORROW WON'T BE FORMALLY APPROVED UNTIL THE SEC COLLECTS COMMENTS ON THE NEW RULES MR BREEDEN CALLED THE PLAN AN ATTEMPT TO REDUCE THE BARRIERS TO COMPETITION BETWEEN MUTUAL FUNDS THAT ARE OFFERED THROUGH A COMMISSIONED SALES FORCE AND THOSE THAT ARE DIRECTMARKETED TO INVESTORS THE RESULT SHOULD BE MORE CHOICES FOR INVESTORS AND MORE VIGOROUS COMPETITION AMONG THE SIX LARGEST FUND COMPANIES THAT SELL FUNDS DIRECTLY TO INVESTORS FIVE SAY THEY WOULD PROBABLY TAKE ADVANTAGE OF THE NEW ADVERTISING RULES IF THEY ARE INTRODUCED WE THINK IT'S A FINE IDEA BECAUSE IT LIFTS OUT OF THE PROSPECTUS ALL THE KEY INFORMATION SAYS DIANE COFFEY A SPOKESWOMAN FOR NEW YORK'S DREYFUS CORP ROGER SERVISON A MANAGING DIRECTOR WITH BOSTON'S FIDELITY INVESTMENTS THE COUNTRY'S LARGEST MUTUAL FUND GROUP RECKONS THE FUND INDUSTRY COULD SAVE 50 MILLION A YEAR SINCE A GOOD 80 OF THE PROSPECTUSES WE NOW SEND OUT END UP GOING TO PEOPLE WHO NEVER OPEN AN ACCOUNT THE EXCEPTION IS VANGUARD GROUP THE VALLEY FORGE PA COMPANY THAT RANKS AS THE FUND INDUSTRY'S THIRD LARGEST FUND GROUP IT'S A TERRIBLE IDEA SAYS JOHN BOGLE VANGUARD'S CHAIRMAN THE ADVERTISEMENTS WOULD HAVE TO HAVE SOME MIGHTY BIG WARNINGS IN THEM BEFORE THEY WOULD SATISFY ME MR BOGLE NOTES THAT THE PUSH FOR NEW ADVERTISING RULES IS PARTLY DRIVEN BY COMPLAINTS BY NOLOAD FUND COMPANIES THAT THEY ARE AT A DISADVANTAGE COMPARED WITH BROKERSOLD FUND GROUPS IF THIS DISADVANTAGE NEEDS TO BE ERASED IT SHOULD BE DONE BY FORCING BROKERS TO DELIVER A PROSPECTUS BEFORE MAKING A SALE ARGUES MR BOGLE I DON'T SEE WHAT THE HURRY IS HE SAYS IF YOU'RE INVESTING FOR 20 YEARS SURELY THE ADDITIONAL 48 HOURS THAT LAPSES WON'T MAKE MUCH DIFFERENCE IN ADDITION TO THE ADVERTISING GUIDELINES THE SEC AT ITS MEETING TOMORROW WILL CONSIDER PROPOSING RULES THAT WOULD REQUIRE MUTUAL FUNDS TO DISCLOSE THE NAMES OF PORTFOLIO MANAGERS IN PROSPECTUSES THE SEC WILL ALSO DEBATE RULES THAT WOULD ALLOW THE NASD TO ESTABLISH A SYSTEM FOR REPORTING TRADING IN AND PRICES OF HIGHYIELD JUNK BONDS SUCH A SYSTEM DOESN'T CURRENTLY EXIST BOTH PROPOSALS HAVE BEEN EXPECTED 9303170124 930317 PEPPERAND SALT AND NONE WENT OUT THE DOOR AS LONG AS I CAN READ ON FAULTY JEANS 9303170123 930317 WHO'S NEWS ROCHE HOLDINGS LTD ROCHE HOLDING LTD BASEL SWITZERLAND DOMINIQUE L FAESSLERF 45 YEARS OLD WAS NAMED PRESIDENT OF THE ROCHE VITAMINS & FINE CHEMICALS NORTH AMERICAN DIVISION OF HOFFMANLA ROCHE INC ROCHE'S US PHARMACEUTICAL UNIT BASED IN NUTLEY NJ HE SUCCEEDS RICHARD J MURPHY 63 YEARS OLD WHO RETIRED EARLY MR FAESSLERF ALSO JOINED THE PARENT COMPANY'S BOARD AND EXECUTIVE COMMITTEE HE HAD BEEN VICE PRESIDENT AND GENERAL MANAGER ROCHE VITAMINS & FINE CHEMICALS NORTH AMERICAN AREA HOFFMANNLA ROCHE INC NAMED DOMINIQUE L FAESSLER PRESIDENT OF THE ROCHE VITAMINS & FINE CHEMICALS NORTH AMERICAN DIVISION HE ALSO WAS NAMED TO THE BOARD AND EXECUTIVE COMMITTEE OF HOFFMANNLA ROCHE A SUBSIDIARY OF SWITZERLAND'S ROCHE HOLDING LTD IN YESTERDAY'S WHO'S NEWS COLUMN MR FAESSLER'S NAME WAS MISSPELLED AND IT WAS INCORRECTLY STATED THAT HE WAS NAMED TO ROCHE HOLDING'S BOARD 9303170122 930317 BUSINESS BRIEF CHRYSLER TO MODERNIZE CANADA MINIVAN PLANT AT 4809 MILLION COST WINDSOR ONTARIO CHRYSLER CORP'S CANADIAN UNIT SAID IT PLANS TO SPEND 600 MILLION CANADIAN DOLLARS US4809 MILLION TO CONVERT AND EXPAND ITS MINIVAN PLANT HERE THE AUTO MAKER SAID A NEW FLEXIBLEPRODUCTION ASSEMBLY LINE TO BE CONSTRUCTED AT THE PLANT WILL ALLOW THE COMPANY TO BUILD BOTH STANDARD AND EXTENDED WHEELBASE VERSIONS OF ITS MINIVANS CURRENTLY CHRYSLER BUILDS THE STANDARD VERSIONS IN WINDSOR WHILE THE EXTENDED WHEELBASE MODEL IS MANUFACTURED IN ST LOUIS PRODUCTION OF A NEW SERIES OF MINIVANS IS SCHEDULED TO BEGIN IN THE CONVERTED WINDSOR PLANT BY MID1995 WORK ON THE VENTURE WILL GET UNDER WAY LATER THIS YEAR WHEN THE CHRYSLER ENGINE PLANT IS DEMOLISHED TO ALLOW THE CONSTRUCTION OF A 400000SQUAREFOOT ADDITION HOUSING A NEW ASSEMBLY BODY AND PAINT SHOP CHRYSLER CANADA LTD SAID THE ONTARIO GOVERNMENT WILL CONTRIBUTE C30 MILLION IN TRAINING FUNDS FOR THE PROJECT THE CANADIAN AUTO WORKERS UNION WHICH REPRESENTS WORKERS AT THE WINDSOR PLANT HAS PRAISED THE EXPANSION PLANS AS MAKING THE PLANT MORE FLEXIBLE AND RESPONSIVE TO MARKET NEEDS AND THUS CONTRIBUTING TO JOB SECURITY CURRENTLY CHRYSLER EMPLOYS 4000 PEOPLE ON TWO PRODUCTION SHIFTS AT THE MINIVAN PLANT IN 1992 THE PLANT TURNED OUT MORE THAN 300000 MINIVANS CHRYSLER HAS SAID IT MAY CONSIDER ADDING A THIRD SHIFT AT THE PLANT UNDER AN AGREEMENT WITH THE AUTO WORKERS UNION A MOVE WHICH WOULD ADD ABOUT 1400 EMPLOYEES CHRYSLER CANADA OFFICIALS COULDN'T BE REACHED FOR FURTHER COMMENT 9303170120 930317 LEISURE & ARTS BOOKSHELF THE FORGOTTEN CONTINENT BY THOMAS W HAZLETT IN THESE DAYS OF FASHIONCONSCIOUS POLITICS THERE IS NO PLACE ON EARTH WHERE THE REALITY OF LIFE DIFFERS SO STARKLY FROM THE BABBLE OF PONTIFICATORS THAN THE BRUTAL EVERYDAY WORLD OF 450 MILLION BLACK AFRICANS ROMANTICIZED IN VIRTUALLY EVERY DIMENSION BY THE IDEOLOGUES OF LEFT AND RIGHT THE HUMAN BEINGS OF THIS BEAUTIFUL BUT UNFORTUNATE CONTINENT HAVE BEEN STRANGELY FORGOTTEN ABANDONED TO SOCIOECONOMIC HELL BY THE LAST HALF OF THE 20TH CENTURY IT SHOULD NOT HAVE BEEN AS GEORGE BN AYITTEY AN ANGRY GHANAIAN NOW TEACHING ECONOMICS AT AMERICAN UNIVERSITY WRITES IN AFRICA BETRAYED ST MARTIN'S 412 PAGES 35 THIS SHOULD HAVE BEEN AFRICA'S EXULTANT MOMENT OF TRIUMPH WHEN THE BRITISH COLONIALISTS WERE CHASED FROM GHANA IN 1957 FOR INSTANCE KWAME NKRUMAH BECAME ITS FIRST AFRICAN PRIME MINISTER BY PLEDGING DURING THE STRUGGLE FOR LIBERATION IF WE GET SELFGOVERNMENT WE'LL TRANSFORM THE GOLD COAST INTO A PARADISE IN 10 YEARS INSTEAD THE ONCE AND FORMER DEMOCRAT TURNED DICTATOR JAILING DISSIDENTS WITH THE GLEEFUL ABANDON OF A SOUTHERN SHERIFF TURNING THE PRESS INTO STOOGES OF THE BUREAUCRACY AND DESTROYING THE LOCAL PEASANT AGRICULTURE BY FORCING FARMERS TO SELL THEIR OUTPUT TO HIS CRONIES ON THE GHANA COCOA MARKETING BOARD ESCAPING TO ROMANIA IN 1966 HE LEFT BEHIND THE TEMPLATE FOR AFRICAN INDEPENDENCE ALL ACROSS THE CONTINENT WHAT HAS FOLLOWED IS A DEPRESSING TALE TODAY JUST FOUR OF 45 BLACK AFRICAN COUNTRIES GAMBIA SENEGAL MAURITIUS AND BOTSWANA ENJOY NONREPRESSIVE GOVERNMENTS MANY VISIT VIOLENCE UPON DISSENTERS AT VERY SMALL PROVOCATION JUST AS THE UNIVERSITY OF MARYLAND EASTERN SHORE WAS AWARDING CAMEROON PRESIDENT PAUL BIYA AN HONORARY DEGREE IN APRIL 1991 MR BIYA'S SECURITY FORCES WERE IN THE PROCESS OF KILLING 58 PRODEMOCRACY STUDENT PROTESTERS AT HIS OWN UNIVERSITY OF YAOUNDE SOME STATES INCLUDING ARAB MAURITANIA PRACTICE SLAVERY FOR MOST AFRICANS MR AYITTEY WRITES INDEPENDENCE DID NOT BRING A BETTER LIFE OR EVEN GREATER POLITICAL AND CIVIL LIBERTIES MANY ARE TROUBLED BY THIS COMPARATIVE STATEMENT BECAUSE THEY MISINTERPRET IT AS A VEILED JUSTIFICATION OF COLONIALISM NOTHING COULD BE FURTHER FROM THE TRUTH AFRICANS OVERWHELMINGLY REJECTED COLONIAL RULE AND HE COUNSELS THEY WOULD REJECT TODAY'S SHACKLES JUST AS QUICKLY GIVEN HALF A CHANCE WHO WOULDN'T THE DICTATORIAL BRETHREN OF THE CONTINENT HAVE EMBARKED UPON A GHOULISH POLITICAL ECONOMY COMPLETE WITH BARBARIC VIOLATIONS OF CIVIL RIGHTS AND AUDACIOUS ABUSES OF THE PUBLIC PURSE AND FOREIGN AID ACCORDING TO AN INFORMED SOURCE IN OILRICH NIGERIA QUOTED BY MR AYITTEY 6 NIGERIANS ARE BILLIONAIRES 6000 ARE MULTIMILLIONAIRES 55000 ARE MILLIONAIRES WHILE 22 MILLION NIGERIANS EARN LESS THAN 10 NAIRA ABOUT 150 A DAY THE MASSIVE SKIMMING OPERATION WOULD MAKE A MOBSTER BLUSH AFRICA BETRAYED EXHAUSTS THE READER BOTH IN THE GRAVITY OF ITS TALE AND IN MR AYITTEY'S LABORIOUS NARRATIVE IT DRAWS CONCLUSIONS TOO FREQUENTLY AND RESORTS TO PREACHING WHEN SOLID ANALYSIS WOULD ENLIGHTEN A CONSTANT REFRAIN IS TO ASSERT THAT DICTATORIAL METHODS ARE STUPIDLY COUNTERPRODUCTIVE FOR THE AFRICAN RULING CLASSES TO EMPLOY AND THEN TO SHOW HOW MUCH LUCRE THEY HAVE SUCCESSFULLY DEPOSITED IN SWISS ACCOUNTS YET MR AYITTEY'S BITTER READING IS AN APPROPRIATE FIRST THERAPY TO THE MALAISE AMERICAN POLICIES HAVE HELPED TO BREED HIS CLEAR AIM IS TO DEBUNK THIS COUNTRY'S POLITICALLY CORRECT OBSESSION WITH WHITE RACISM IN AFRICA HE CLAIMS THAT UNTIL THE WEST RECOGNIZES THAT OPPRESSION IS OPPRESSION IRRESPECTIVE OF THE TYRANT'S SKIN COLOR WESTERN LEADERS HAVE NO BUSINESS PONTIFICATING ABOUT FREEDOM FOR BLACK AFRICANS HE DRAWS TWO MORALS FIRST FREEDOM OF EXPRESSION IS THE PRIMARY REFORM THAT MUST PROCEED ALL OTHERS INCLUDING ECONOMIC REFORM ONLY THROUGH A ROBUST DISCUSSION OF ALTERNATIVES WILL AFRICA'S UNIQUE COURSE OF DEVELOPMENT BE DISCOVERED AND SECONDLY AS TO ADVISING HIS WESTERN FRIENDS ON WHAT THEY MIGHT DO TO HELP GET OUT OF AFRICA UNTIL THE US THE INTERNATIONAL MONETARY FUND THE WORLD BANK THE SCANDINAVIANS AND THE UNITED NATIONS CAN MEET MR AYITTEY'S CHALLENGE TO NAME ONE DEVELOPING COUNTRY IN AFRICA THAT HAS BECOME A DEVELOPED COUNTRY DUE TO FOREIGN AID WE MIGHT INDEED DO BEST BY FIRST DOING NO HARM MR HAZLETT WHO TEACHES ECONOMICS AND PUBLIC POLICY AT THE UNIVERSITY OF CALIFORNIA DAVIS RECENTLY VISITED AFRICA 9303170119 930317 FINANCING BUSINESS SOUTHWESTERN PROPERTY TRUST INC SOUTHWESTERN PROPERTY TRUST INC DALLAS SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING A PROPOSED PUBLIC OFFERING OF FOUR MILLION SHARES OF COMMON STOCK THE OFFERING WILL BE MANAGED BY NATWEST SECURITIES LTD KEMPER SECURITIES INC AND MCDONALD & CO SECURITIES INC OFFICIALS OF THE COMPANY COULDN'T BE REACHED FOR ADDITIONAL INFORMATION THE REAL ESTATE INVESTMENT TRUST'S SHARES WERE QUOTED LATE YESTERDAY AT 13625 DOWN 125 CENTS ON THE AMERICAN STOCK EXCHANGE 9303170118 930317 INTERNATIONAL LEADER OF ITALIAN LIBERAL PARTY QUITS FURTHER SHAKING GOVERNING COALITION BY CRAIG FORMAN AND MAUREEN KLINE STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN THE LEADER OF ITALY'S LIBERAL PARTY RESIGNED FURTHER SHAKING THE NATION'S FRAGILE GOVERNING COALITION AMID A WIDENING CORRUPTION SCANDAL MEANWHILE THE PUBLIC OUTRAGE SEEN IN SOME RECENT STREET DEMONSTRATIONS SPILLED ONTO THE FLOOR OF PARLIAMENT IN ROME AS SEVERAL LEGISLATORS SCUFFLED IN THE GOVERNMENT CHAMBER TWO MEMBERS OF PARLIAMENT WERE TEMPORARILY THROWN OUT FOR UNRULY BEHAVIOR IN THE LATEST RESIGNATION RENATO ALTISSIMO A MEMBER OF PARLIAMENT AND HEAD OF THE TINY LIBERAL PARTY WHICH IS PART OF THE NATION'S FOURPARTY RULING COALITION DENIED ANY WRONGDOING AFTER HE WAS TOLD HE WAS UNDER INVESTIGATION IN THE CURRENT ANTICORRUPTION INVESTIGATIONS BUT HE SAID YESTERDAY HE WAS RESIGNING TO ALLOW ME TO MAKE A MORE EFFECTIVE DEFENSE OF MY HONOR ACCORDING TO ITALIAN NEWS REPORTS MR ALTISSIMO IS THE THIRD ITALIAN PARTY LEADER TO RESIGN IN THE WAKE OF THE ANTICORRUPTION PROBES WHICH HAVE IMPLICATED HUNDREDS OF POLITICIANS BUSINESSMEN AND BUREAUCRATS THE ALLEGATIONS CENTER ON CHARGES OF WIDESPREAD INFLUENCEPEDDLING BY SENIOR POLITICIANS WHO ARE SAID TO HAVE TAKEN BRIBES OR KICKBACKS FROM BUSINESSES IN EXCHANGE FOR GOVERNMENT CONTRACTS THUS FAR THE MANI PULITE OR CLEAN HANDS INVESTIGATIONS HAVE LED TO THE DEPARTURES OF THE LEADERS OF THE SOCIALIST AND REPUBLICAN PARTIES AS WELL AS NEARLY A DOZEN CURRENT OR FORMER CABINET MINISTERS MR ALTIMISSO'S DEPARTURE DOESN'T IMMEDIATELY THREATEN THE COALITION LED BY SOCIALIST PRIME MINISTER GIULIANO AMATO BUT IT'S A INDICATION THAT THE PRESSURES ON THE RULING COALITION ARE LIKELY TO INTENSIFY AS MORE POLITICIANS ARE ENSNARED YESTERDAY THE CHAMBER OF DEPUTIES OR LOWER HOUSE OF PARLIAMENT VOTED ITS SUPPORT FOR THE GOVERNMENT OF MR AMATO LAST WEEK HE SAW SIMILAR SUPPORT IN A VOTE IN THE SENATE OR UPPER HOUSE ON THE FLOOR OF PARLIAMENT DISPUTES BROKE OUT AS THE PRIME MINISTER ADDRESSED A PARLIAMENTARY DEBATE ON MORALITY AND WAYS OF CLEANING UP THE LEGISLATIVE AND POLITICAL SYSTEM ONE OF THE EXPELLED DEPUTIES NEOFASCIST FRANCESCO MARENCO HELD UP A BANNER SAYING OUT WITH THE THIEVES AND PURSUED A CHRISTIAN DEMOCRAT COLLEAGUE INTO THE LOUNGE SCREAMING BANDITS YOU ARE THIEVES AND VILLAINS THE ANSA NEWS AGENCY SAID THE DEBATE ENDED WITH A VOTE ON AN AGENDA FOR FURTHER PARLIAMENTARY DISCUSSION ONE OF THE KEY ITEMS TO BE DISCUSSED WAS REFORM OF PARTY FINANCING LAWS ANOTHER DEPUTY FROM THE NORTHERN LEAGUE WAVED A HANGMAN'S NOOSE IN THE DIRECTION OF THE PRIME MINISTER LEAGUE DEPUTIES THEN MARCHED OUT OF PARLIAMENT BEFORE THE SESSION WAS OVER AND ANOTHER NEOFASCIST DEPUTY FILIPPO BERSELLI WAS KICKED OUT FOR DISPLAYING PLASTIC GLOVES TO SIGNIFY CHARGES THE GOVERNMENT WAS TRYING TO WHITEWASH ALLEGATIONS AGAINST PARTY MEMBERS 9303170117 930317 CANADIAN FIRMS' SHIPMENTS OTTAWA CANADIAN MANUFACTURERS REGISTERED A 03 DECLINE IN SHIPMENTS IN JANUARY FROM DECEMBER AND A 12 DROP IN NEW ORDERS STATISTICS CANADA A GOVERNMENT AGENCY SAID THE DECLINE IN SHIPMENTS WAS LED BY PRODUCERS OF ELECTRICAL AND ELECTRONIC EQUIPMENT WITH A DROP OF 65 JANUARY WAS THE FIRST MONTH TO SHOW A DECLINE IN SHIPMENTS SINCE SEPTEMBER STATISTICS CANADA ATTRIBUTED THE JANUARY DROP IN NEW ORDERS PARTLY TO A DECLINE IN AIRCRAFT DEMAND IN CANADA AND THE US PRIOR TO JANUARY NEW ORDERS ROSE FOR THREE CONSECUTIVE MONTHS 9303170116 930317 US TRADE DEFICIT WIDENED SHARPLY IN FOURTH QUARTER BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BROADEST MEASURE OF THE US TRADE DEFICIT WIDENED IN THE FOURTH QUARTER TO THE BIGGEST GAP IN TWO YEARS THE US CURRENTACCOUNT DEFICIT TOTALED 2202 BILLION IN THE FOURTH QUARTER AFTER A 1577 BILLION DEFICIT IN THE THIRD PERIOD THE COMMERCE DEPARTMENT SAID FOR THE FULL YEAR THE DEFICIT AMOUNTED TO 6245 BILLION COMPARED WITH 368 BILLION IN 1991 WHEN THE FIGURES WERE DISTORTED BY CONTRIBUTIONS FROM US ALLIES TO DEFRAY THE COST OF THE PERSIAN GULF WAR THE WIDENING OF THE CURRENTACCOUNT DEFICIT IN THE FOURTH QUARTER REFLECTS SMALLER SURPLUSES FROM TRADE IN SERVICES AND FROM INVESTMENT INCOME AS WELL AS INCREASED US AID TO FOREIGNERS THE DEPARTMENT SAID THE DEFICIT FROM TRADE IN MANUFACTURED GOODS AND COMMODITIES NARROWED BY 166 BILLION THE SURPLUS IN SERVICES SHRANK BY 279 BILLION PRIMARILY BECAUSE IT WAS INFLATED IN THE THIRD QUARTER BY PAYMENTS FROM FOREIGN INSURERS TO VICTIMS OF HURRICANES ANDREW AND INIKI THE SURPLUS IN INVESTMENT INCOME SHRANK BY 214 BILLION INCOME FROM US INVESTMENTS ABROAD DECLINED AND INCOME PAID TO FOREIGNERS WHO HAVE INVESTED IN US TREASURY BONDS AND OTHER ASSETS INCREASED FOREIGNERS STEPPED UP THEIR ACQUISITIONS OF US ASSETS OF ALL KINDS SECURITIES INCLUDED LAST YEAR WHILE THE FLOW OF US INVESTMENT ABROAD SLOWED THE DEPARTMENT SAID BUT NET FOREIGN DIRECT INVESTMENT IN US FACTORIES AND COMPANIES FELL BY 39 BILLION IN 1992 THAT IS FOR THE FIRST TIME IN DECADES FOREIGN DIRECT INVESTORS TOOK OUT MORE MONEY THAN THEY SPENT BUYING AND BUILDING US PLANTS AND COMPANIES THE US AND WORLDWIDE ECONOMIC RECESSION IS BELIEVED TO HAVE BEEN THE LEADING FACTOR SAID RAYMOND R KRAUSE PRESIDENT OF THE ORGANIZATION FOR INTERNATIONAL INVESTMENT A COALITION OF FOREIGNOWNED FIRMS BUT HE SAID AN UNCERTAIN POLITICAL CLIMATE FOR FOREIGN INVESTMENT IN THE US WAS ALSO A FACTOR THE 6245 BILLION CURRENTACCOUNT DEFICIT FOR ALL OF 1992 WAS SUBSTANTIALLY SMALLER THAN THE DEFICITS OF 9043 BILLION RECORDED IN 1990 AND THE 10114 BILLION RECORDED IN 1989 COMPARED WITH 1991 THE MERCHANDISE TRADE DEFICIT WIDENED BY 2284 BILLION TO 9628 BILLION IN 1992 THE TRADE SURPLUS ON SERVICES GREW BY 983 BILLION TO 5513 BILLION AIDED BY DECLINING US DEFENSE SPENDING ABROAD BUT THE SURPLUS IN INVESTMENT INCOME THE DIFFERENCE BETWEEN PROFITS DIVIDENDS AND INTEREST EARNED BY US RESIDENTS ON FOREIGN INVESTMENTS AND THOSE EARNED BY FOREIGNERS ON THEIR INVESTMENTS IN THE US DECREASED BY 637 BILLION TO 1006 BILLION 9303170115 930317 LETTERS TO THE EDITOR THE COSMIC BEAUTY OF BOOKKEEPING IT'S GREAT TO SEE THAT THE GLORIES OF ACCOUNTING ARE FINALLY GETTING PROMINENT COVERAGE AS THEY RICHLY DESERVE FATHER OF ACCOUNTING PAGE ONE JAN 29 THE INDUSTRIAL REVOLUTION COULD NOT HAVE BEEN ACCOMPLISHED WITHOUT THE DATA ORGANIZATION AND RELIABILITY THAT MODERN ACCOUNTING PROVIDES NO LESS THAN THE FAMOUS GERMAN POET JOHANN WOLFGANG VON GOETHE RHAPSODIZED FITTINGLY IN 1796 DOUBLEENTRY BOOKKEEPING IS ONE OF THE MOST BEAUTIFUL DISCOVERIES OF THE HUMAN SPIRIT IT CAME FROM THE SAME SPIRIT WHICH PRODUCED THE SYSTEMS OF GALILEO AND NEWTON AND THE SUBJECT MATTER OF MODERN PHYSICS AND CHEMISTRY BY THE SAME MEANS IT ORGANIZES PERCEPTIONS INTO A SYSTEM AND ONE CAN CHARACTERIZE IT AS THE FIRST COSMOS CONSTRUCTED PURELY ON THE BASIS OF MECHANISTIC THOUGHT WITHOUT TOO MUCH DIFFICULTY WE CAN RECOGNIZE IN DOUBLEENTRY BOOKKEEPING THE IDEAS OF GRAVITATION OR THE CIRCULATION OF THE BLOOD AND OF THE CONSERVATION OF MATTER THE SURNAME OF LUCA PACIOLI MAY BE PRONOUNCED POTCHEEOHLEE BY HIS ACADEMIC PUBLICISTS IN SEATTLE BUT TO ITALIANS OF HIS TIME AND OURS IT IS A TRISYLLABLE THAT WE WOULD TRANSCRIBE APPROXIMATELY AS PAHCHAWLEE WITH A LIGHT STRESS ON THE MIDDLE SYLLABLE AND THE AW A LITTLE ROUNDED IN THE DIRECTION OF OUR LONG O YOU FAILED TO NOTE THAT LUCA PACIOLI 14451514 WAS A MEMBER OF THE FRANCISCAN ORDER AND A PRIEST YOU MAY BE SURPRISED TO LEARN THAT THERE ARE A FEW OF US ACCOUNTANTS WHO DON'T HAVE AN INFERIORITY COMPLEX WHO FEEL ACCOUNTANTS PERFORM A RATHER VALUABLE FUNCTION IN OUR ECONOMIC SYSTEM AND HERE'S THE BIG SURPRISE WHO HAVE LONG KNOWN OF PACIOLI AND HIS WRITING A FEW OF US TEXAS CPAS ARE HAVING AN ENJOYABLE TIME COLLECTING HISTORICAL MATERIAL AND PLAN TO SET UP A MUSEUM DEDICATED TO THE HISTORY OF ACCOUNTANCY 9303170113 930317 WHO'S NEWS BOLSA CHICA NAMES KOLL AS NEW CHAIRMAN PLANS CALIFORNIA MOVE HAMPTON NH BOLSA CHICA CO NAMED DONALD M KOLL 59 YEARS OLD AS CHAIRMAN SUCCEEDING MICHAEL D DINGMAN 61 WHO RESIGNED THE REAL ESTATE DEVELOPMENT COMPANY ALSO SAID IT IS MOVING ITS HEADQUARTERS TO NEWPORT BEACH CALIF MR KOLL WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CLOSELY HELD KOLL CO A NEWPORT BEACH CALIF PROPERTY DEVELOPMENT AND MANAGEMENT FIRM RAY WIRTA 49 PRESIDENT AND CHIEF OPERATING OFFICER OF KOLL WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING MR DINGMAN HE WAS ALSO NAMED PRESIDENT A NEW POST AND A DIRECTOR BOLSA ALSO ANNOUNCED THAT MR DINGMAN RESIGNED AS A DIRECTOR AND PAUL M MONTRONE 51 RESIGNED AS VICE CHAIRMAN AND DIRECTOR A SPOKESMAN SAID THE RESIGNATIONS WERE EFFECTIVE IMMEDIATELY AND VOLUNTARY MR DINGMAN CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ABEX INC AND MR MONTRONE CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FISHER SCIENTIFIC INTERNATIONAL INC PAUL C HEGNESS A SENIOR PARTNER OF GOOD WILDMAN HEGNESS & WALLEY A NEWPORT BEACH CALIF LAW FIRM AND MARCO F VITULLI PRESIDENT OF VITULLI VENTURES LTD BELLEVUE WASH WERE ALSO NAMED DIRECTORS EXPANDING THE BOARD TO SEVEN MEMBERS THE COMPANY SAID THAT KOLL CO HAS EFFECTIVELY MANAGED MOST OF BOLSA CHICA'S PROPERTIES FOR THE PAST THREE YEARS IT'S TIME TO TURN THE MANAGEMENT OVER TO THE HOME TEAM ABEX FORMERLY THE PNEUMO CORP UNIT OF HENLEY GROUP AND FISHER SCIENTIFIC ALSO A HENLEY GROUP UNIT WERE SPUN OFF INTO PUBLIC COMPANIES OVER THE PAST TWO YEARS THEN LAST YEAR HENLEY GROUP MERGED ITS REMAINING ASSETS INTO HENLEY PROPERTIES INC WHICH WAS RENAMED BOLSA CHICA AND IS INVOLVED IN REAL ESTATE INVESTMENT AND PROPERTY MANAGEMENT 9303170112 930317 BRAZIL REACHES DEBT ACCORD NEW YORK BRAZIL AND ITS INTERNATIONAL CREDITORS REACHED AN ACCORD TO COMPLETE A 44 BILLION DEBT RESTRUCTURING CITIBANK THE HEAD OF THE BANK RESTRUCTURING COMMITTEE SAID AS EXPECTED FOREIGN BANK CREDITORS HOLDING MORE THAN 95 OF THE DEBT APPROVED A PLAN THAT GIVES LENDERS A VARIETY OF OPTIONS TO EXCHANGE THE PRINCIPAL AND INTEREST OWED BY BRAZIL THE CITICORP UNIT SAID THE AGREEMENT MODELED AFTER THE SOCALLED BRADY ACCORDS REACHED WITH OTHER DEVELOPING COUNTRIES INCLUDES THE EXCHANGE OF LOANS FOR HIGHQUALITY BONDS AND THE EXTENSION OF NEW MONEY 9303170111 930317 CREDIT RATINGS TOLL BROTHERS INC HUNTINGDON VALLEY PA STANDARD & POOR'S CORP RAISED ITS RATINGS ON TWO SUBSIDIARY DEBT ISSUES OF LUXURY HOME BUILDER TOLL BROTHERS CITING ITS STRENGTH IN AN OTHERWISE WEAK MIDDLE ATLANTIC REAL ESTATE MARKET S&P RAISED ITS RATINGS ON SUBSIDIARY TOLL CORP'S 105 SENIOR SUBORDINATED NOTES AND 1295 SUBORDINATED NOTES TO SINGLEBPLUS FROM SINGLEB A TOTAL OF ABOUT 129 MILLION OF DEBT IS AFFECTED IT ALSO GAVE AN INITIAL RATING OF SINGLEBPLUS TO A 75 MILLION ISSUE OF 95 SENIOR SUBORDINATED NOTES BY TOLL CORP THE DEBT IS GUARANTEED BY TOLL BROTHERS THE RATINGS CONCERN SAID THE BUILDER HAS IMPROVED ITS MARKET POSITION CAPITAL AND EARNINGS IN THE PAST FEW YEARS DESPITE A STEADY AND SUBSTANTIAL DROP IN HOME BUILDING ACTIVITY IN NEW JERSEY AND PENNSYLVANIA TOLL'S CORE MARKETS UNLIKE MANY COMPETITORS TOLL HAS WEATHERED THE DOWNTURN AND IS EXPANDING INTO NEW NORTHEAST AND MIDDLE ATLANTIC MARKETS S&P SAID SALES BACKLOG IS AT RECORD LEVELS AND SHOULD RESULT IN HIGHER EARNINGS AND CASH FLOW FOR THE REST OF THE YEAR S&P ADDED 9303170110 930317 GE UNIT PLANS TO OFFER CORPORATE NOTES IN ASIA HONG KONG GENERAL ELECTRIC CAPITAL CORP PLANS TO OFFER THE FIRST CORPORATE NOTES TARGETING NONJAPANESE ASIAN INVESTORS OFFICIALS OF GE CAPITAL THE FINANCE UNIT OF GENERAL ELECTRIC CO SAID MONDAY THAT THE COMPANY PLANS TO OFFER LATE THIS WEEK US200 MILLION TO US300 MILLION OF THREEYEAR OR FIVEYEAR NOTES IN ASIA UNTIL NOW THE ASIAN DEVELOPMENT BANK HAS BEEN THE ONLY BORROWER TO TAP THE MARKET FOR SOCALLED DRAGON BONDS DEBT SECURITIES ISSUED IN ASIA AND AIMED AT SUCH INSTITUTIONAL INVESTORS AS CENTRAL BANKS AND PENSION FUNDS IN THE REGION'S NEWLY INDUSTRIALIZED COUNTRIES OWING LARGELY TO THE ADB'S MULTILATERAL STATUS AND POLITICAL CLOUT ITS DRAGON BONDS HAVE PROVED HIGHLY POPULAR AMONG CENTRAL BANKERS AND OTHER RISKAVERSE ASIAN INVESTORS NOW THE GE CAPITAL ISSUE WILL PROVIDE THE FIRST TEST OF WHETHER THIS NASCENT MARKET WILL BECOME A VIABLE ALTERNATIVE TO ESTABLISHED CORPORATE FUNDRAISING CENTERS IN JAPAN THE US AND EUROPE THE ECONOMIC REASONS FOR GE CAPITAL AND OTHER FOREIGN BORROWERS TO SELL DEBT SECURITIES IN ASIA ARE COMPELLING AFTER HALF A DECADE OF BOOMING ECONOMIC GROWTH MANY ASIAN COUNTRIES AND INDIVIDUALS HAVE ACCUMULATED HUGE CASH HOARDS 9303170109 930317 MARKETING BRIEF NOTED MUSIC SONY CORP'S SONY MUSIC SIGNED A DISTRIBUTION AGREEMENT WITH TRIBECA MUSIC A NEWLY FORMED EXTENSION OF ACTOR ROBERT DE NIRO'S TRIBECA MOVIE AND TELEVISION PRODUCTION COMPANY TRIBECA MUSIC WILL START BY DISTRIBUTING MOVIE SOUNDTRACKS BUT LATER WILL BEGIN SIGNING ARTISTS SAID JANE ROSENTHAL ONE OF THE PRINCIPALS IN THE PRODUCTION COMPANY 9303170108 930317 REALTY REFUND TRUST CLEVELAND REALTY REFUND TRUST SAID IT EXTENDED ITS CREDIT AGREEMENT WITH NATIONAL CITY CORP BY 12 MONTHS TO JULY 1994 UNDER THE EXTENSION REALTY REFUND'S LINE OF CREDIT REMAINS AT 30 MILLION WITH THE INTEREST RATE AT EITHER THE PRIME RATE OR 15 PERCENTAGE POINTS ABOVE LIBOR AT THE TRUST'S OPTION LIBOR IS THE LONDON INTERBANK OFFERED RATE ADDITIONALLY THE REAL ESTATE INVESTMENT TRUST SAID IT SOLD A 5 MILLION SECURED NOTE TO ITS CHAIRMAN AND COCHIEF EXECUTIVE OFFICER ALAN M KRAUSE AT PAR 9303170107 930317 FINANCING BUSINESS PILGRIM'S PRIDE CORP PILGRIM'S PRIDE CORP SAID IT PLANS A NOTE OFFERING AS PART OF A REFINANCING PLAN IT HAS BEEN WORKING ON FOR MONTHS THE PITTSBURG TEXAS PRODUCER AND MARKETER OF CHICKEN PRODUCTS WHICH HAS BEEN UNDER FINANCIAL PRESSURE FOR SOME TIME SAID IT FILED A REGISTRATION STATEMENT COVERING A PUBLIC OFFERING OF 100 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 CLIFF BUTLER CHIEF FINANCIAL OFFICER SAID THE OFFERING WHICH WILL BE UNDERWRITTEN BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP HASN'T BEEN PRICED YET THE COMPANY SAID IT IS ALSO NEGOTIATING A NEW 75 MILLION REVOLVING CREDIT AGREEMENT WITH A GROUP LED BY HARRIS BANK CHICAGO AND A 28 MILLION TERM LOAN WITH MONY CAPITAL MARKETS PROCEEDS FROM THE REFINANCING WILL BE USED TO REDEEM 50 MILLION OF 1425 SENIOR NOTES DUE 1995 AND REPAY 87 MILLION OWED UNDER THE COMPANY'S CURRENT REVOLVING AND TERM LOAN AGREEMENTS 9303170106 930317 INTERNATIONAL HUNGARY'S PRICES INCREASE 17 FRANKFURT CONSUMER PRICES IN HUNGARY ROSE 17 IN FEBRUARY FROM JANUARY AND 247 IN THE 12 MONTHS THROUGH THE END OF FEBRUARY THE MTI NEWS AGENCY REPORTED CITING THE CENTRAL STATISTICAL OFFICE MTI REPORTED THAT PRICES FOR FOOD AND SERVICES ROSE 25 AND 32 RESPECTIVELY BECAUSE OF THE IMPACT OF PRICE INCREASES IN JANUARY THAT CONTINUED INTO FEBRUARY PRICES IN JANUARY ROSE 68 OVER DECEMBER AND 259 IN THE 12 MONTHS THROUGH THE END OF THE MONTH PRICES FOR CLOTHING INDUSTRIAL PRODUCTS INCLUDING FUELS AND CONSUMER DURABLES ROSE 02 05 AND 06 RESPECTIVELY IN FEBRUARY FROM JANUARY 9303170105 930317 LETTERS TO THE EDITOR THOSE WERE LIES AND THAT'S THE TRUTH ARTHUR SCHLESINGER JR'S SIMULTANEOUS DEFENSE OF THE PRESIDENT'S GOVERNING STYLE AND OF HIS PAINLESS DISCARDING OF CAMPAIGN PROMISES IS REMARKABLE CLINTON'S CONTINUING CAMPAIGN EDITORIAL PAGE FEB 26 HIS ASSERTION THAT THE PRESIDENT IS REQUIRED TO CONSTANTLY PERSUADE THE NATION IS AS CORRECT AS IT IS BESIDE THE POINT OTHER PRESIDENTS HAVE FOUND IT APPROPRIATE TO SIGNAL AN END TO THEIR CAMPAIGN MENTALITY AND A SHIFT IN HOW THEIR PROMISES ARE TO BE CONSTRUED BY ADOPTING A MORE PRESIDENTIAL STYLE THAT IS A STYLE THAT IS HEAVIER ON CLARITY CONSISTENCY AND RESPONSIBILITY THAN IS EXPECTED IN THE HEAT OF A CAMPAIGN IN MR SCHLESINGER'S WORDS IT IS TRUE BUT NOT LAUDABLE THAT PRESIDENTIAL CANDIDATES OFTEN MAKE INCONSISTENT OR INSINCERE PROMISES BUT A SITTING PRESIDENT COULD RISK INCOHERENCE PERHAPS EVEN WAR OR FINANCIAL PANIC BY FOLLOWING SUCH A COURSE THUS IT IS TRUE BUT NOT LAUDABLE THAT CANDIDATE CLINTON PROBABLY WILL NOT BE SERIOUSLY CALLED TO ACCOUNT FOR HIS REPUDIATED CAMPAIGN PROMISE TO ADMIT HAITIAN REFUGEES A PROMISE WHOSE REPUDIATION INTENSIFIED THE MISERY OF THOUSANDS OF DESTITUTE HAITIANS AND BETRAYED THEIR ADVOCATES IN THIS COUNTRY BUT IT IS QUITE ANOTHER THING FOR HIS STATE OF THE UNION ADDRESS SURELY THE MOST SERIOUS REPORT A PRESIDENT CAN GIVE TO THE NATION TO PROMISE CUTS IN FEDERAL SPENDING THAT WERE SOON REVEALED TO BE TAX INCREASES OR SIMPLY NONEXISTENT HE SEEMED ACTUALLY SURPRISED THAT HE CREATED A POSTELECTION FUROR BY SUGGESTING THE ACCEPTABILITY OF NORMAL RELATIONS WITH IRAQ'S SADDAM HUSSEIN HE HAS CONCOCTED AN UNSTABLE COMPROMISE REGARDING THE RIGHTS OF HOMOSEXUALS TO SERVE IN THE MILITARY WHILE PROMISING TO ALLOW THEM FULL ACCESS IN SIX MONTHS BUT IS HE PROMISING TO SOMEHOW OVERCOME CLEAR AND OVERWHELMING CONGRESSIONAL OPPOSITION HIS ADMINISTRATION NOW ALMOST DAILY RELEASES NEW SUGGESTIONS THAT HIS POSTELECTION PROMISE TO PROVIDE MEDICAL COVERAGE TO THE 37 MILLION AMERICANS WITHOUT HEALTH INSURANCE MAY BE A DWINDLING PROSPECT DOES MR SCHLESINGER BELIEVE IT WOULD BE UNREASONABLE FOR THESE PEOPLE TO BE CONCERNED OVER THIS CONTINUING CAMPAIGN PROMISE WHAT QUESTIONS DOES A PRESIDENT'S REFUSAL TO GROW OUT OF THE POLITICAL ADOLESCENCE OF A CAMPAIGN RAISE ABOUT HIS CHARACTER MR SCHLESINGER OPINES THAT SINCE VOTERS ARE NO FOOLS WE SHOULD CONTINUE TO CONDONE AND ACQUIESCE TO CAMPAIGN ORATORY EVEN WHEN FALSE MISLEADING AND INTENTIONAL THIS PRESIDENT HAS BACKPEDDLED FURTHER AND FASTER AFTER AN ELECTION THAN ANY PRESIDENT IN MEMORY AND TO BLAME THE NEW DEFICIT FIGURES WHICH ACCORDING TO A BUSINESS WEEK INTERVIEW HE KNEW ABOUT IN JULY FOR HIS ABOUTFACE ON TAXES IS UNCONSCIONABLE AS LONG AS THE VOTER FINDS SOLACE IN THE THEY ALL DO IT ATTITUDE WHICH MR SCHLESINGER EMBRACES THERE WILL BE NO ACCOUNTABILITY MR SCHLESINGER WAS AN INSIDER IN THE KENNEDY ADMINISTRATION I WELL REMEMBER THAT DURING A KENNEDY WHITE HOUSE PRESS CONFERENCE REPORTERS WERE PRESSING HARD ON AN ADMINISTRATION STATEMENT THAT PROVED TO BE FALSE A WHITE HOUSE SPOKESMAN DECLARED THAT THERE ARE TIMES WHEN THE AMERICAN PEOPLE MUST BE LIED TO FOR THEIR OWN GOOD THAT WAS A CONTEMPTIBLE VIEW THEN AND IT REMAINS CONTEMPTIBLE NOW A SPECIAL PROSECUTOR SQUANDERED MILLIONS OF TAXPAYER DOLLARS RECENTLY TRYING TO CONVICT WELLMEANING PUBLIC SERVANTS OF LYING TO CONGRESS YET MR SCHLESINGER SEES NOTHING WRONG WITH POLITICIANS LYING TO THE PEOPLE HE SEEMS TO BELIEVE THEY SHOULD BE ALLOWED TO LIVE BY A DIFFERENT MORAL CODE THAN THAT EXPECTED EVEN DEMANDED OF THE REST OF US PRESIDENT CLINTON HAS NOT ONLY REPUDIATED THE BULK OF HIS CAMPAIGN PROMISES PARTICULARLY THOSE INVOLVING TAXES AND SPENDING BUT HAS ALSO FLIPFLOPPED ON HIS GENERAL POSITION ON ISSUES DOES HE SUPPORT HIGHTECH AMERICAN COMPANIES THAT MUST INVEST TO COMPETE IN THE GLOBAL ECONOMY NOT IF THEY'RE PHARMACEUTICAL MANUFACTURERS HOW ABOUT THE NORTH AMERICAN FREE TRADE AGREEMENT DOESN'T LOOK LIKE IT SO FAR LOWERING TAXES ON THE MIDDLE CLASS OR EVEN JUST NOT RAISING THEM NOPE IN FIVE WEEKS IN OFFICE THIS PRESIDENT STAGED A WHOLESALE REVERSAL OF EVERY ONE OF HIS CAMPAIGN POSITIONS ON BUSINESS INDUSTRY AND THE ROLE OF GOVERNMENT IN PROMOTING ECONOMIC GROWTH SUCH A DEPARTURE IS NOT AS MR SCHLESINGER SAYS AT WORST A VENIAL SIN AND AT BEST AN INTELLIGENT ADAPTATION TO A SITUATION IT IS WHAT IT IS LYING EVERYONE EXPECTS A POLITICIAN TO EXAGGERATE HIS PLANS FOR OFFICE WHILE ON THE CAMPAIGN TRAIL BUT TO DISMISS EVERYTHING A CANDIDATE SAYS BEFORE THE ELECTION AS MERE RHETORIC AS MR SCHLESINGER WOULD DO IS TO LEAVE VOTERS WITH NO BASIS FOR CHOOSING OTHER THAN A COIN TOSS AS CITIZENS SEEKING FAIR REPRESENTATION IN OUR GOVERNMENT WE EXPECT BY ELECTION DAY TO UNDERSTAND WHAT THE CANDIDATES BELIEVE IN EVEN IF WE DO NOT FULLY BELIEVE THAT THEY WILL PERFORM EXACTLY AS PROMISED I AM STILL NOT SURE WHAT BILL CLINTON BELIEVES IN I WAS ALSO NOT SURE WHAT GEORGE BUSH BELIEVED IN THAT MAY BE WHY THE CHOICE IN 1992 WAS SO HARD FOR SO MANY AMERICANS BUT I DO KNOW THAT MR CLINTON SINCE TAKING OFFICE HAS BROKEN PROMISES AND REVERSED POSITIONS AT A RECORD PACE MR SCHLESINGER'S DEFENSE OF SUCH ACTIONS IS MORALLY BANKRUPT MR SCHLESINGER CHIDES THE SAD MISUNDERSTANDING OF THOSE WHO CALL ATTENTION TO CLINTON'S BRAZEN AND CAVALIER ATTEMPT AT REDIRECTING THE PUBLIC'S ATTENTION AWAY FROM REALITY AND INTO A TRUST ME MODE HE POINTS TO PRESIDENTIAL ACTIONS FROM THE PAST AS PROOF POSITIVE THAT ALL THE BESTCHIEF EXECUTIVES HAVE MADE INFLATED CAMPAIGN PLEDGES MET WITH THE PUBLIC ON A REGULAR BASIS AND CHANGED THEIR MINDS ONCE IN OFFICE IT WAS PARTICULARLY INSTRUCTIVE FOR MR SCHLESINGER TO PULL OUT THE EXAMPLE OF JUDGE ROSEMAN'S ADVICE TO FDR REGARDING THE CONTROVERSY OVER HIS 1932 PLEDGE TO REDUCE FEDERAL SPENDING IN HIS ATTEMPT TO WHITEWASH ADMINISTRATION DOUBLETALK MR SCHLESINGER MISSES THE POINT WHILE ALL PRESIDENTS FIND GOVERNING SIGNIFICANTLY MORE DIFFICULT THAN CAMPAIGNING ALL PRESIDENTS HAVEN'T OFFERED THE AMERICAN PUBLIC BLATANT LIES AS JUSTIFICATION FOR THEIR ELECTION MR CLINTON'S STUMP SPEECHES ARE RANSACKED FOR THE SIMPLE REASON THAT NOTHING HE SAID DURING THE CAMPAIGN HAS CARRIED THROUGH INTO HIS ADMINISTRATION WITH THE EXCEPTION OF INCREASED TAXATION NO DOUBT THERE ARE TIMES WHEN A PRESIDENT MUST REEVALUATE HOWEVER THIS IS NOT THE SAME AS PRESENTING A KNOWN FALSEHOOD TO VOTERS AND THEN PRETENDING IT NEVER HAPPENEDALL IN THE NAME OF FURTHERING AN UNSTATED AGENDA OF SOCIAL ENGINEERING 9303170104 930317 INTERNATIONAL NORTHWEST AIR BACKTRACKS ON JOB OFFERS TO JAPANESE ST PAUL MINN NORTHWEST AIRLINES BACKTRACKED ON JOB OFFERS TO 81 JAPANESE GRADUATES GUARANTEEING THEM ONLY ONEYEAR EMPLOYMENT CONTRACTS THE MOVE IS LIKELY TO HEIGHTEN JAPANESE MISTRUST OF FOREIGN EMPLOYERS NORTHWEST IS THE LATEST FINANCIALLY STRAPPED COMPANY TO TRY TO CONTAIN COSTS IN JAPAN BY RETRACTING PERMANENT JOB OFFERS A PRACTICE THAT UNTIL RECENTLY WAS RARE THERE HISTORICALLY JAPANESE STUDENTS BASICALLY HAVE BEEN ASSURED A LIFETIME JOB UPON GRADUATION FROM A UNIVERSITY AND WHILE JAPANESE COMPANIES HAVE MADE SIMILAR MOVES FOREIGN COMPANIES HAVE GOTTEN MORE SCRUTINY EASTMAN KODAK JAPAN LTD RECENTLY CAUSED A STIR WHEN IT TOLD EIGHT UNIVERSITY RECRUITS THAT IT COULDN'T HIRE THEM AFTER ALL A SPOKESMAN FOR NORTHWEST A UNIT OF WINGS HOLDINGS INC SAID THE DECISION TO GUARANTEE ONLY ONE YEAR'S EMPLOYMENT WAS SPARKED BY THE UNCERTAIN ECONOMIC CONDITIONS FOR THE AIRLINE INDUSTRY IN JAPAN THE MOVE IS UNUSUAL FOR NORTHWEST WHICH FOR ABOUT 20 YEARS HAS RECRUITED 50 TO 120 JAPANESE GRADUATES EACH YEAR THE SPOKESMAN SAID BUT HE ADDED THAT THE COMPANY DOESN'T REGARD THE GRADUATES AS TEMPORARY EMPLOYEES IT IS OUR INTENTION TO KEEP THEM 9303170103 930317 ENTERPRISE SMALL DEFENSE FIRM UNEARTHS PLOWSHARES BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL IRVINE CALIF IN MID1990 DEFENSE CONTRACTOR MICRO KINETICS CORP WAS BLEEDING RED INK FROM DWINDLING PENTAGON CONTRACTS BUT TODAY FOLLOWING A SHIFT TO COMMERCIAL WORK THE SMALL MACHINING AND DESIGN FIRM IS TURNING A SMALL PROFIT AND ADDING JOBS AS US DEFENSE SPENDING SLOWS COUNTLESS BUSINESSES STRUGGLE TO CONVERT FROM MILITARY CONTRACTING TO PEACETIME PURSUITS THE SWITCH CAN BE PARTICULARLY TAXING FOR SMALL ENTERPRISES WHICH OFTEN LACK FINANCIAL RESOURCES TO GO VERY FAR AFIELD MICRO KINETICS'S MOVE INTO TWO DIVERSE AREAS DISPLAY ADVERTISING AND ENGINECLEANING MACHINES SUGGESTS THAT A SUCCESSFUL TRANSITION FROM SWORDS TO PLOWSHARES TAKES MONEY THE RIGHT NICHE A SAVVY INVESTOR AND A BIT OF LUCK YET MANY SMALL AEROSPACE SUPPLIERS FIND THEMSELVES IN HOSTILE TERRITORY WHEN THEY ABANDON DEFENSE CONTRACTING COMMERCIAL PEOPLE WON'T DEAL WITH AEROSPACE PEOPLE GRIPES JIM HART A NORTHRIDGE CALIF MACHINESHOP OWNER WHO'S TRYING TO FIND NEW BUSINESS THE HARD WAY MAKING OVER 50 COLD CALLS A WEEK OTHER ENTREPRENEURS ARE NOT SURE WHAT THEY SHOULD DO PHIL MCCULLOUGH WHOSE HUNTINGTON BEACH CALIF MACHINE SHOP RECENTLY CUT 35 WORKERS SAYS A LOT OF US ARE VERY GOOD TECHNICALLY BUT PROBABLY WE'RE NOT VERY GOOD BUSINESSMEN MICRO KINETICS FOUNDED IN 1983 BY GERMANBORN ENGINEER HANS BANNIES UNDER THE NAME CONTROL TECHNICS FLOURISHED DURING THE REAGAN ERA'S DEFENSESPENDING BOOM BY MAKING PROTOTYPES AND POSITIONING DEVICES FOR LASERS AND MISSILES BUT BY 1989 AFTER ANNUAL SALES HIT 1 MILLION DEMAND BEGAN TO SHRINK MICRO KINETICS TURNED TO VENTURE CAPITALIST ADRIAN GLUCK PRESIDENT OF CREST EQUITIES INC IN IRVINE INTRIGUED BY THE COMPANY'S TECHNICAL EXPERTISE MR GLUCK PAID 12000 TO BUY A 10 STAKE AGREEING TO HELP MICRO KINETICS FIND NEW MARKETS HIS INVESTMENT SWELLED TO 200000 AND ABOUT A 20 STAKE BY THE END OF 1989 HE INVESTED 100000 OVER THE NEXT TWO YEARS STILL THE FIRM'S FINANCIAL CRISIS WORSENED DURING 1991 ANY POTENTIAL HARDSHIP THERE IS WE HAD SAYS MR BANNIES EARLY LAST YEAR MR GLUCK INTRODUCED MICRO KINETICS TO AN ELECTRONIC ADVERTISING DISPLAY BEING DEVELOPED BY ADMOTION CORP AN IRVINE FIRM IN WHICH MR GLUCK HAD INVESTED 31 MILLION ADVERTISING ADMOTION'S DISPLAYS NEEDED MORE PRECISE ENGINEERING DESIGNED FOR MALLS THE PLASTIC GIZMO RESEMBLES A TELEVISION SET BUT WORKS LIKE A MOVABLE BILLBOARD FOUR PHOTOGRAPHIC IMAGES SHIFT ONE AT A TIME THE RESULT A MOTION SEQUENCE CHEAPER TO PRODUCE THAN VIDEO ADS INITIAL MEETINGS BETWEEN ADMOTION AND MICRO KINETICS PEOPLE WENT POORLY AND THERE WERE OTHER PROBLEMS IN APRIL MICRO KINETICS AND AN OUTSIDE SUPPLIER COPRODUCED A 100000 DISPLAY PROTOTYPE WHICH DIDN'T WORK BOTCHED MEASUREMENTS BLURRED IMAGES RUINING THE EFFECT BY LAST OCTOBER HOWEVER A SECOND PROTOTYPE WORKED WELL ENOUGH TO ATTRACT ORDERS FROM KRAFT GENERAL FOODS INC A UNIT OF PHILIP MORRIS COS PEPSICO INC'S TACO BELL UNIT AND SEVERAL OTHER FIRMS SAYS MR GLUCK MICRO KINETICS OFFICIALS SAY THEY ARE NOW BUILDING 100 SIGNS A MONTH FOR ADMOTION TO FURTHER EASE MICRO KINETICS'S TRANSITION MR GLUCK HIRED 47YEAROLD ENGINEER ABE GILL AS ITS NEW PRESIDENT MR GILL SUCCEEDED MR BANNIES 76 WHO REMAINS CHAIRMAN AND RESIDENT GURU MR GILL FOUNDER OF A COMPUTERSUPPLY COMPANY IN PALO ALTO IMMEDIATELY SLASHED MICRO KINETICS'S STAFF TO 11 FROM 18 THE COMPANY ISN'T RELYING SOLELY ON THE DISPLAYSIGN VENTURE LAST YEAR MICRO KINETICS PAID AN UNDISCLOSED AMOUNT FOR THE CAR ENGINECLEANING UNIT OF CARBONCLEAN INTERNATIONAL A NORTON OHIO COMPANY IN WHICH MR GLUCK HAD INVESTED 25 MILLION THE MAKER OF MACHINES THAT REMOVE CARBON POLLUTANTS FROM ENGINES WAS RENAMED MOTORVAC TECHNOLOGIES INC MICRO KINETICS NOW SELLS OVER 250 MOTORVAC MACHINES A MONTH FOR UP TO 3000 EACH MICRO KINETICS ALSO IS DEVELOPING ROBOTICS DEVICES AND IN THE WAKE OF THE WORLD TRADE CENTER BOMBING A CONSUMER SMOKE MASK BASED ON A MILITARY MODEL THOUGH IT'S TOO EARLY TO PREDICT MICRO KINETICS'S LONGTERM SUCCESS COMPANY OFFICIALS SEE EARLY SIGNS OF A PAYOFF EMPLOYMENT IS RISING AGAIN DURING ITS THIRD FISCAL QUARTER ENDED DEC 31 MICRO KINETICS REPORTED NET INCOME OF 5399 ITS SECOND QUARTERLY PROFIT AFTER FIVE CONSECUTIVE QUARTERS OF LOSSES MICRO KINETICS EXECUTIVES SAY SALES SHOULD REACH BETWEEN 10 MILLION AND 15 MILLION OVER THE NEXT 12 TO 16 MONTHS WITH ABOUT HALF COMING FROM THE SIGN AND ENGINECLEANING VENTURES AND THE REST FROM OTHER NEW PRODUCTS DEFENSE SALES ARE EXPECTED TO ACCOUNT FOR ABOUT 10 OF THE TOTAL MR GLUCK WHOSE INVESTMENT HAS GROWN TO 1 MILLION SAYS THE COMPANY IS NEGOTIATING WITH SEVERAL UNDERWRITERS ABOUT GOING PUBLIC IN 1994 MEANWHILE MICRO KINETICS PLANS TO MOVE TO A BIGGER SITE IT SHOULDN'T BE HARD TO FIND ROOMIER QUARTERS PLENTY OF SPACE AVAILABLE SIGNS LOOM BEFORE OFFICES OF LESS SUCCESSFUL DEFENSE CONTRACTORS 9303170102 930317 JC PENNEY UNIT JOINS VENTURE DALLAS US SATELLITE BROADCASTING INC THE DIRECT BROADCAST SATELLITE VENTURE SET TO OFFER ITS SERVICE IN MARCH 1994 SAID ITS BILLING ORDERING AND CUSTOMER SUPPORT SERVICES WILL BE PROVIDED BY JC PENNEY BUSINESS SERVICES USSB WHICH IS LAUNCHING ITS SATELLITE IN DECEMBER WITH PARTNER GENERAL MOTORS CORP'S HUGHES COMMUNICATIONS INC HAS ALREADY SIGNED PROGRAMMING CONTRACTS WITH TIME WARNER INC AND VIACOM INC THOMSON CONSUMER ELECTRONICS INC WILL MANUFACTURE THE PIZZAPANSIZED SATELLITE DISHES UNDER THE RCA NAME JC PENNEY BUSINESS SERVICES IN DALLAS A WHOLLY OWNED SUBSIDIARY OF JC PENNEY CO WILL TAKE ORDERS HANDLE BILLING AND ANSWER VIEWERS' QUESTIONS THROUGH ITS TELEMARKETING CENTER 9303170101 930317 INTERNATIONAL PAPER ACQUISITION PURCHASE NY INTERNATIONAL PAPER CO EXPANDING ITS PAPER DISTRIBUTION BUSINESS ON THE WEST COAST SAID IT AGREED TO ACQUIRE CERTAIN ASSETS OF LOS ANGELESBASED INGRAM PAPER CO TERMS OF THE SALE WEREN'T DISCLOSED INGRAM HAS ANNUAL SALES OF 131 MILLION AND IS ONE OF THE LARGEST COMMERCIAL PAPER DISTRIBUTORS IN SOUTHERN CALIFORNIA ARIZONA AND HAWAII INTERNATIONAL PAPER WOULDN'T SAY WHAT ASSETS IT WAS BUYING BUT SAID THE TRANSACTION IS EXPECTED TO CLOSE AROUND APRIL 1 9303170100 930317 LEISURE & ARTS MUSIC THEY REALLY BLOW THEIR OWN HORNS BY BARBARA JEPSON ELKHORN WIS BRASS PLAYERS ARE ESPECIALLY FICKLE CREATURES READY AT THE SLIGHTEST PROVOCATION TO JILT THEIR CURRENT HORNS IN FAVOR OF A MORE APPEALING MODEL ONE WITH A SLIGHTLY LARGER BELL OR A SLIGHTLY SMALLER BELL OR A LITTLE LESS WEIGHT OR A LONGER LEADPIPE IT'S NOT LIKE BUYING A VIOLIN OBSERVES TRUMPETER FRED MILLS A MEMBER OF THE CANADIAN BRASS QUINTET WHERE YOU HAVE TO MORTGAGE YOUR HOUSE TO GET A FIRSTCLASS INSTRUMENT YOU CAN PURCHASE FINE BRASS INSTRUMENTS FOR 1000 TO 10000 THESE DAYS THAT PRICE RANGE INCLUDES A LINE OF INSTRUMENTS DESIGNED BY THE QUINTET ITSELF FOR SALE THROUGH SELECTED MUSIC DEALERS IN A MOVE THAT GOES FAR BEYOND THE USUAL ENDORSEMENT LEVEL THE QUINTET ASKED GETZEN CO A FAMILYOWNED CONCERN HERE IN THIS SMALL POPULATION 5337 INDUSTRIAL CENTER NEAR MILWAUKEE TO CREATE TRUMPETS TROMBONES AND TUBAS TO ITS SPECIFICATIONS THE GROUP ALSO RECRUITED SWISS AND GERMAN MAKERS TO PRODUCE EUPHONIUMS AND FRENCH HORNS THE COMPLETED INSTRUMENTS ARE PURCHASED BY CANADIAN BRASS MUSICAL INSTRUMENT CO AND SENT TO ITS MILWAUKEE WAREHOUSE FOR INSPECTION PACKING AND SHIPPING FANS OF THIS ZANY ENSEMBLE WHOSE CONCERTS ENCOMPASS BACH FUGUES JAZZ MEDLEYS AND SPOOFS OF CARMEN COMPLETE WITH WIGS AND COSTUMES MAY RECALL THAT FOR EIGHT YEARS THE QUINTET ENDORSED A MATCHED SET OF YAMAHA INSTRUMENTS BUT THE QUINTET'S TUBA PLAYER CHARLES DAELLENBACH EXPLAINS THAT LARGE HIGHLY AUTOMATED MANUFACTURERS SUCH AS YAMAHA CAN DO JUST SO MUCH TO SATISFY A SINGLE MUSICIAN SAYS EDWARD GETZEN WHO PRESIDES OVER 110 SKILLED ARTISANS AT HIS ELKHORN FACTORY IT'S LIKE ASKING GENERAL MOTORS TO GIVE YOU A CHEVY COLOR AND A PONTIAC INTERIOR ON A CADILLAC WHAT LENDS SPECIAL INTEREST TO THE QUINTET'S NEW VENTURE IS THAT ELKHORN HAS BEEN ONE OF TWO TRADITIONAL CENTERS FOR BANDINSTRUMENT MAKING IN THE US SINCE THE EARLY 1900S THE OTHER IS A FOURHOUR DRIVE AWAY IN ELKHART IND AKA THE HOME OF THE MOBILEHOME INDUSTRY DESPITE THE NAME SIMILARITY THERE IS NO OFFICIAL CONNECTION BETWEEN THE TWO COMMUNITIES AND THE HORN IN ELKHORN IS OF ANIMAL NOT MUSICAL ORIGIN BRASS MANUFACTURING IN ELKHART WAS STARTED BY A FLAMBOYANT CORNETIST NAMED CHARLES GERARD CONN IN 1875 ALAS RECENT HISTORICAL RESEARCH HAS CAST DOUBTS ON COMPANY LEGEND WHICH TRACES HIS INVENTION OF A SOFTER RUBBERCUSHIONED MOUTHPIECE TO A SPLIT LIP HE RECEIVED IN A FIST FIGHT WITH A TUBA PLAYER WHAT WE DO KNOW IS THAT THE MOUTHPIECES CONN DEVELOPED PROVED SO POPULAR THAT HE SOON EXPANDED INTO INSTRUMENT MAKING BY THE TURN OF THE CENTURY CG CONN CO WAS THE LARGEST BRASSINSTRUMENT MANUFACTURER IN THE COUNTRY THANKS TO THE POPULARITY OF JOHN PHILIP SOUSA'S BAND INTEREST IN BRASS WAS HIGH SEVERAL FORMER CG CONN EMPLOYEES HAD ALREADY OPENED RIVAL SHOPS IN ELKHART AND THE PRESENCE OF HIGHLY SKILLED WORKERS IN THE AREA PROMPTED SELMER CO A NEW YORKBASED WOODWIND AND BRASS MANUFACTURER TO RELOCATE THERE IN 1927 MEANWHILE BACK IN ELKHORN TOWN OFFICIALS LURED A CHICAGO MAKER NAMED FRANK HOLTON TO THEIR AREA IN 1918 WITH PLEDGES OF FUNDS AND LABOR TO AID IN THE CONSTRUCTION OF HIS FACTORY IN 1939 A HOLTON CO EMPLOYEE NAMED ANTHONY J GETZEN LEFT TO FOUND HIS OWN COMPANY AND ANCILLARY BUSINESSES SUCH AS REPAIR SHOPS CASEMAKERS AND TOOL SUPPLIERS SPRUNG UP AROUND THE TWO FIRMS MUCH HAS CHANGED SINCE THEN DURING THE LATE '70S AND EARLY '80S THE BANDINSTRUMENT INDUSTRY WENT THROUGH A SHAKEOUT DUE TO SAGGING SCHOOLBAND ENROLLMENT AND THE ENTRY OF YAMAHA'S COMPETITIVELY PRICED QUALITY INSTRUMENTS INTO THE MARKET SOME COMPANIES WENT UNDER CG CONN SELMER AND HOLTON HAVE MERGED WITH OTHER INSTRUMENT MAKERS AND THEIR PARENT COMPANIES REMAIN ALONG WITH YAMAHA LEADERS IN BRASS SALES MOST ORCHESTRAL TRUMPET PLAYERS FOR EXAMPLE USE THE VINCENT BACH TRUMPET IN C MADE BY SELMER LUDWIG CO AND ACCORDING TO THE COMPANY PRESIDENT BILL CLINTON OWNS THREE OF ITS TENOR SAXOPHONES HOLTON NOW A DIVISION OF THE G LEBLANC CORP IS AMONG THE MAKERS THAT SUPPLIED DIZZY GILLESPIE'S SIGNATURE BENT BELL TRUMPETS AND THE PREVIOUSLY JAZZORIENTED GETZEN RECENTLY REPURCHASED FROM BANKRUPT OUTSIDERS BY GRANDSONS OF THE FOUNDER IS GAINING VISIBILITY IN THE CLASSICAL ARENA VIA ITS EDWARDS TROMBONE AND THE CANADIAN BRASS COLLECTION WHAT HASN'T CHANGED SUBSTANTIALLY IS THE WAY BRASS INSTRUMENTS ARE MADE IN ELKHART AND ELKHORN AT GETZEN THE PROCESS BEGINS WITH PREMIUMGRADE SHEET METAL OF YELLOW BRASS 70 COPPER 30 ZINC GOLD BRASS 85 COPPER 15 ZINC AND RED BRASS 90 COPPER 10 ZINC IN ONE ROOM OF ITS 36000SQUAREFOOT CONCRETEBLOCK FACTORY ON HIGHWAY H MEN AND WOMEN FABRICATE AND SOLDER INSTRUMENT PARTS THERE ARE 71 DIFFERENT PIECES IN OUR TRUMPET VALVE SECTIONS ALONE SAYS SUPERVISOR HERBERT PAPENFUS AN ELKHORN NATIVE AND LONGTIME EMPLOYEE IN ANOTHER AREA WORKERS SHAPE TRUMPET BELL STEMS OVER STEEL MANDRELSTAPERED FORMING TOOLS CUSTOMIZED TO THE MANUFACTURER'S DIMENSIONS ALONE IN A DARKENED ROOM AN ANNEALER HEATS NEWLY JOINED BELL STEMS AND BELLS JUDGING THE CORRECT DEGREE OF SOFTNESS BY THE BRIGHT ORANGE COLOR OF THE METAL NEARBY A DOZEN TROMBONES WITH THE CANADIAN BRASS LOGO AWAIT IMMERSION IN VARIOUS ODORIFEROUS ACID BATHS TO REMOVE SURFACE MARKS AND RESIDUES IN ITS DESIGN COLLABORATION WITH GETZEN THE QUINTET SOUGHT THE VERSATILITY NEEDED FOR TODAY'S MUSIC MAKING AND THE FREEBLOWING EASE OF OLDER AMERICAN INSTRUMENTS IF YOU BLEW INTO THEM EXPLAINS MR DAELLENBACH THE SON OF A BAND DIRECTOR THE AIR DIDN'T KICK BACK AT YOU THE CANADIAN BRASS TUBA AVAILABLE THIS FALL WAS INSPIRED BY A 60YEAROLD YORK CO MANDREL THAT MR DAELLENBACH FOUND IN A HOUSTON PAWNSHOP HEARD IN CONCERT AT BROOKLYN COLLEGE RECENTLY THE NEW INSTRUMENTS DISPLAYED GOOD PROJECTION ABILITY AND A PLEASING BRILLIANCE LISTENERS CAN JUDGE FOR THEMSELVES WHEN THE QUINTET PERFORMS ON APRIL 2 AT THE CERRITOS ART CENTER NEAR ANAHEIM CALIF AND ON APRIL 3 AT THE PARAMOUNT THEATRE IN DENVER TO DATE 750 INSTRUMENTS HAVE BEEN SOLD HERE AND ABROAD AND THE QUINTET HOPES TO BREAK EVEN ON ITS 200000 INVESTMENT THIS YEAR THE COLLECTION HAS ELICITED PRAISE FOR ITS RESPONSIVENESS AND FLEXIBILITY FROM CLASSICAL MUSICIANS SUCH AS ROY POPER WHO USES THE CANADIAN BRASS BFLAT TRUMPET IN HIS POSITION AS PRINCIPAL PLAYER OF SEVERAL LOS ANGELES ORCHESTRAS AND WARREN DECK PRINCIPAL TUBA FOR THE NEW YORK PHILHARMONIC WHO HAS COLLABORATED WITH A GERMAN MAKER ON THE DESIGN OF A HEAVIERWEIGHT ORCHESTRA TUBA BUT NO ONE IS HAPPIER THAN THE QUINTET MEMBERS THEMSELVES SAYS MR DAELLENBACH IT'S A MUSICIAN'S FANTASY COME TRUE MS JEPSON IS A FREELANCE MUSIC WRITER IN NEW YORK 9303170099 930317 ADMINISTRATION RAISES REQUEST FOR S&L BAILOUT BENTSEN SAYS 45 BILLION SHOULD BE SUFFICIENT TO COMPLETE THE JOB BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SAID IT WOULD SEEK 45 BILLION TO WRAP UP THE SAVINGSANDLOAN BAILOUT HOPING THAT WOULD BE ENOUGH TO HEAD OFF STILL ANOTHER FUND REQUEST LATER THE AMOUNT IS CONSIDERABLY HIGHER THAN THE 34 BILLION THAT WHITE HOUSE BUDGET CHIEF LEON PANETTA LAST WEEK SUGGESTED WOULD BE ENOUGH TO COMPLETE THE JOB UNDER THE IMPROVING ECONOMY THE 34 BILLION FIGURE INCLUDES 32 BILLION IN NEW MONEY AND 2 BILLION ALREADY HELD IN RESERVE BY RESOLUTION TRUST CORP THE AGENCY RESPONSIBLE FOR COVERING THE DEPOSITS OF FAILED THRIFTS AS WELL AS SELLING OFF THEIR ASSETS BUT MR PANETTA HAD ALSO WARNED THAT THE FIGURE COULD GO HIGHER THAN 34 BILLION THE CONGRESSIONAL BUDGET OFFICE HAS ESTIMATED THE FUNDING NEEDS OF THE THRIFTINDUSTRY PROGRAM AT ABOUT 50 BILLION BUDGET PACKAGES CURRENTLY UNDER CONSIDERATION IN BOTH THE HOUSE AND SENATE WHICH ARE ONLY A GENERAL BLUEPRINT ASSUME S&L CLEANUP FUNDING OF 50 BILLION REFLECTING THE CBO ESTIMATE REP HENRY GONZALEZ D TEXAS THE BANKING PANEL CHAIRMAN AND REP JAMES LEACH R IOWA THE COMMITTEE'S RANKING MINORITY MEMBER BOTH SAID THEY WOULD ENDORSE THE 45 BILLION REQUEST AND THE HOUSE SPEAKER THOMAS FOLEY D WASH SAID HE WAS HEARTENED BY THE PROPOSAL THOUGH HE SAID THAT FOR QUICK PASSAGE OF THE FUNDING LEGISLATION SUBSTANTIAL BIPARTISAN SUPPORT IS NECESSARY LAST YEAR THE SENATE APPROVED NEW RTC FUNDING BUT THE HOUSE FAILED TO VOTE FOR IT REPUBLICANS WOULDN'T BACK IT WITHOUT CERTAIN CONDITIONS AND DEMOCRATS WOULDN'T GO OUT ON A LIMB ALONE FOR A BUSH ADMINISTRATION PROPOSAL THE 45 BILLION FIGURE CLEARLY REFLECTS THE NEW ADMINISTRATION'S AIM OF ERRING ON THE HIGH SIDE TESTIFYING BEFORE THE HOUSE BANKING COMMITTEE YESTERDAY TREASURY SECRETARY LLOYD BENTSEN SAID WE HOPE THAT WE WILL USE LESS THAN 45 BILLION BUT WE BELIEVE OUR REQUEST IS SUFFICIENT TO COMPLETE THE JOB ONCE AND FOR ALL SO THAT WE WILL NOT COME BACK TO YOU TO ASK AGAIN FOR FUNDS MANY MEMBERS OF CONGRESS ARE CONCERNED HOWEVER ABOUT VOTING FOR SIZABLE BAILOUT FUNDS AT THE SAME TIME THEY AND PRESIDENT CLINTON ARE TRYING TO SLASH THE HUGE FEDERAL DEFICIT REP BERNARD SANDERS A VERMONT INDEPENDENT DECLARED THAT 45 BILLION TO SOME OF US IS A LOT OF MONEY DURING YESTERDAY'S HEARING HE ASKED WHERE THE BAILOUT FUNDS WOULD COME FROM BUT RECEIVED NO ANSWER IN FACT MR CLINTON'S OFFICE OF MANAGEMENT AND BUDGET USED THE 32 BILLION BAILOUT FIGURE IN CALCULATING THE SIZE OF THE FEDERAL DEFICIT IF THE FIGURE CLIMBS HIGHER OMB WARNED SO DOES THE DEFICIT IF THE FULL 45 BILLION WERE USED IT WOULD BRING THE TAB FOR THE BAILOUT WHICH HAS HELPED COVER GOVERNMENTINSURED S&L DEPOSITS TO 194 BILLION THAT WOULD INCLUDE 62 BILLION ALLOTTED IN 1988 PLUS 87 BILLION ALREADY GIVEN TO THE RTC UNDER THE ADMINISTRATION'S PLAN THE RTC WOULD RECEIVE 28 BILLION WHILE 17 BILLION WOULD GO INTO THE FEDERAL DEPOSIT INSURANCE CORP'S ONGOING SAVINGSINSURANCE FUND THE RTC BY LAW CAN'T TAKE OVER ANY FAILED THRIFTS AFTER SEPT 30 THOUGH IT CAN CONTINUE TO SELL S&L ASSETS THROUGH DEC 31 1996 AFTER SEPT 30 THE FDIC ASSUMES THE ROLE OF TAKING OVER FAILED THRIFTS THE THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD A HIGHLEVEL GROUP HEADED BY MR BENTSEN SAID THAT IF THE RTC RECEIVED THE FUNDING THE AGENCY PROBABLY WOULD TAKE CONTROL OF 35 MORE THRIFTS BEFORE SEPT 30 ON TOP OF THE 83 FAILED S&LS IT IS CURRENTLY OVERSEEING THE OFFICE OF THRIFT SUPERVISION THE REGULATORY AGENCY THAT CLOSES WEAK THRIFTS LISTS THE 35 INSTITUTIONS AS PROBABLE RTC CASES THE OVERSIGHT BOARD SAID ANOTHER 52 S&LS ARE LIKELY TO FAIL IN THE NEXT SIX TO 12 MONTHS THE BOARD SAID AND WOULD BECOME EITHER RTC OR FDIC CASES IN ADDITION ANOTHER 105 THRIFTS COULD BECOME FDIC CASES AFTER SEPT ACKNOWLEDGING THAT MANY LAWMAKERS ARE CRITICAL OF THE RTC ITSELF TREASURY SECRETARY BENTSEN YESTERDAY PLEDGED A PACKAGE OF AGENCY REFORMS MANY OF YOU CANNOT VOTE TO FUND THE RTC UNLESS DRAMATIC IMPROVEMENTS ARE MADE IN ITS OPERATIONS HE SAID WE INTEND TO MAKE SUCH IMPROVEMENTS MR BENTSEN'S PROPOSED REFORMS INCLUDED EXPANDING OPPORTUNITIES FOR BUSINESSES OWNED BY MINORITIES AND WOMEN TO PARTICIPATE IN THE MANAGEMENT AND DISPOSITION OF RTC ASSETS SOME COMMITTEE MEMBERS WARNED THEY WOULDN'T SUPPORT THE RTC FUNDING WITHOUT SUCH CHANGES THE REFORMS ALSO WOULD INCLUDE STRENGTHENING INTERNAL RTC CONTROLS AGAINST WASTE FRAUD AND ABUSE MORE EFFECTIVE RESPONSE TO CONTRACTING AND OTHER PROBLEMS FLAGGED BY AUDITORS INCLUDING THE AGENCY'S OWN INSPECTOR GENERAL STIFFENING RTC MONITORING OF ITS CONTRACTORS AND NAMING AN OVERSIGHT BOARD AUDIT COMMITTEE TO WORK ON STRICTER RTC CONTROLS 9303170098 930317 BUSINESS BRIEF MELLON BANK CORP PITTSBURGH MELLON BANK CORP ATTEMPTING TO RID ITSELF OF SLOWGROWTH BUSINESSES SAID IT HIRED AN INVESTMENT BANKER TO EXPLORE THE SALE OF THREE OF ITS INFORMATION SERVICE UNITS THE UNITS WHICH CONTRIBUTED 94 MILLION IN REVENUE LAST YEAR AND EMPLOYED 940 PEOPLE IN PITTSBURGH CHICAGO AND SOUTH BEND IND PROVIDE DATA PROCESSING AND MANAGEMENT INFORMATION SERVICES TO OTHER FINANCIAL INSTITUTIONS BACKOFFICE SUPPORT FOR TRUST AND INVESTMENT BUSINESSES AND MORTGAGE BANKING DATAPROCESSING SERVICES THE REVENUE FROM THE THREE BUSINESSES ON THE BLOCK REPRESENTS 7 OF EXPECTED REVENUE FROM ALL OF MELLON'S FEEGENERATING BUSINESSES TAKING INTO ACCOUNT MELLON'S PENDING ACQUISITION OF BOSTON CO FROM NEW YORKBASED AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS UNIT THE THREE UNITS DATACENTER MELLON ACCOUNTING SERVICES AND DATALINK USE MELLON'S INHOUSE COMPUTER AND TELECOMMUNICATIONS HARDWARE WHICH WON'T BE SOLD ANALYSTS SAY MELLON'S MOVE IS PART OF THE BANK'S EFFORT TO DEFINE ITSELF AS A REGIONAL BANK AND A PROVIDER OF TRUST AND INVESTMENT SERVICES MELLON DECLINED TO SAY HOW MUCH IT THOUGHT THE UNITS WOULD DRAW 9303170097 930317 WHO'S NEWS CREDIT SUISSE CREDIT SUISSE ZURICH FRANK MEISTER 54 YEARS OLD WAS APPOINTED GROUP EXECUTIVE FOR PRIVATE BANKING FOR THE CREDIT SUISSE USA UNIT OF THIS BANK COMPANY HE SUCCEEDS JORG SCHWARZENBACH 48 WHO RETURNS TO SWITZERLAND TO BECOME THE PARENT'S REGIONAL BRANCH MANAGER IN BASEL 9303170096 930317 INTERNATIONAL VOLKSWAGEN'S NEW CHAIRMAN SHAKES UP FIRM LOPEZ FROM GM GETS SEAT ON BOARD PIECH GIVES HIM COSTCUTTING ROLE BY WALL STREET JOURNAL REPORTERS AUDREY CHOI IN DUSSELDORF AND DOUGLAS LAVIN IN DETROIT FERDINAND PIECH THE NEW CHAIRMAN OF VOLKSWAGEN AG MOVED DECISIVELY TO PUT HIS STAMP ON EUROPE'S NO 1 AUTO MAKER PUSHING THROUGH A MANAGEMENT BOARD SHAKEUP AND CONFIRMING THAT HE WON AN EPIC TUGOFWAR WITH GENERAL MOTORS CORP OVER J IGNACIO LOPEZ DE ARRIORTUA THE INDUSTRY'S COSTCUTTING GURU MR LOPEZ WAS OFFICIALLY NAMED TO VW'S BOARD MR PIECH WHO SUCCEEDED CARL HAHN AS VW'S CHAIRMAN JAN 1 GAVE MR LOPEZ IMMEDIATE CONTROL OF PRODUCTION AND PURCHASING AT VW AS PART OF AN ATTEMPT TO TURN THE STRUGGLING GERMAN AUTO MAKER INTO A MUCH LEANER OPERATION RESULTS FOR 1992 REPORTED YESTERDAY AMPLY ILLUSTRATE WHY MR PIECH WAS ANXIOUS TO ABANDON THE EXPANSIONIST TACK OF MR HAHN AND ENGAGE IN AN UNUSUAL PUBLIC FIGHT WITH GM TO WOO MR LOPEZ WHO WAS AT VW HEADQUARTERS IN WOLFSBURG AND READY TO GO TO WORK DESPITE A 12 RISE IN SALES TO 854 BILLION MARKS VW POSTED AN 87 PLUNGE IN EARNINGS TO JUST 147 MILLION MARKS 113 MILLION THE SUPERVISORY BOARD SLASHED THE DIVIDEND TO TWO MARKS FOR ALL SHARES FROM THE PREVIOUS 11 MARKS ON ORDINARY SHARES AND THE PREVIOUS 12 MARKS ON PREFERRED SHARES MEANWHILE AT GM OFFICIALS STILL WERE SMARTING FROM MR LOPEZ'S ABRUPT DECISION TO LEAVE AFTER GM OFFERED TO MAKE HIM EXECUTIVE VICE PRESIDENT IN CHARGE OF NORTH AMERICAN AUTO OPERATIONS GM EXECUTIVES DEFEND THEIR STRENUOUS EFFORT TO RETAIN MR LOPEZ AS EVIDENCE OF A NEW WILLINGNESS TO KEEP TALENTED EMPLOYEES BUT OTHERS WERE MORE CRITICAL IT'S VERY DISTURBING SAID MARYANN KELLER AN AUTOMOTIVE ANALYST WITH FURMAN SELZ IT SUGGESTS TO ME THAT FAR TOO MUCH OF THE COMPANY'S TURNAROUND WAS BEING PLACED IN THE HANDS OF ONE MAN GM HASN'T YET NAMED A SUCCESSOR TO MR LOPEZ BUT SAYS IT WILL DO SO SOON CLEARLY MR PIECH IS SEEKING TO USE MR LOPEZ'S STATUS AS AN OUTSIDER AND SOMETHING OF AN ECCENTRIC TO ORCHESTRATE A SEA CHANGE AT GERMANY'S LARGEST AUTO COMPANY THE COMPANY HAS GONE INTO A COMPLETELY DIFFERENT MODE WHERE GETTING COSTS DOWN IS THE NO1 NO2 AND NO3 PRIORITY SAID CHRISTOPHER WILL WHO TRACKS THE EUROPEAN AUTO INDUSTRY FOR LEHMAN BROTHERS IN LONDON TO MAKE WAY FOR MR LOPEZ AS PURCHASING AND PRODUCTION CHIEF HIS PREDECESSOR GUENTER HARTWICH WAS BUMPED OFF THE MANAGEMENT BOARD AND MADE AN ADVISER DIETER ULLSPERGER BOARD MEMBER IN CHARGE OF FINANCE WHO WAS PERCEIVED AS A COMPETENT REPRESENTATIVE OF THE HAHN ERA WAS FORCED TO LEAVE THE COMPANY ALTOGETHER THE COMPANY SAID IN A STATEMENT THAT MR ULLSPERGER'S DEPARTURE WAS A MUTUAL DECISION BECAUSE OF DIFFERENCES ABOUT THE FUTURE DIRECTION OF COMPANY POLICY TAKING MR ULLSPERGER'S PLACE IS WERNER SCHMIDT FORMERLY RESPONSIBLE FOR OVERSEAS OPERATIONS AND DISTRIBUTION RESEARCH AND DEVELOPMENT CHIEF ULRICH SEIFFERT WIDELY CREDITED FOR PUSHING VW AHEAD ON ENVIRONMENTAL AND SAFETY ISSUES MEANWHILE WAS MOVED FROM A COMPANYWIDE POSITION TO THE VW BRAND DIVISION THE VOLKSWAGEN GROUP ENCOMPASSES SEVERAL BRANDS INCLUDING AUDI SEAT SKODA AND VOLKSWAGEN WHILE ANALYSTS WERE TAKEN ABACK AT THE DEPTH OF VW'S PROFIT COLLAPSE AND DIVIDEND CUT THE ANNOUNCEMENTS WERE GENERALLY REGARDED AS SHOWING MR PIECH'S DETERMINATION TO SWALLOW BITTER MEDICINE SLASHING THE DIVIDEND SIGNALS THAT SHAREHOLDERS WILL BEAR SOME OF THE PAIN AND PAVES THE WAY FOR HITTING EMPLOYEES AND SUPPLIERS WITH STRINGENT COST CUTS A DEEP DIVIDEND SLASH HELPS STRENGTHEN THE COMPANY'S CASE FOR JOB CUTS TO THE EMPLOYEES LEHMAN BROTHERS' MR WILL SAID BUT OTHERS WORRY THAT THE DIVIDEND CUT MEANS THE EUROPEAN CAR INDUSTRY IS FARING FAR WORSE THAN GENERALLY EXPECTED MANY PEOPLE BELIEVE THAT PIECH'S APPOINTMENT AND NOW LOPEZ'S WILL HAVE IMMEDIATE AFFECTS SAID BOB BARBER AUTO ANALYST AT JAMES CAPEL IN LONDON BUT WITH THE MARKET SLIPPING AWAY AS FAST AS IT IS WHATEVER CUTS THEY MAKE IN THE SHORT TERM WON'T BE ENOUGH TO STOP THE COMPANY FROM SLIPPING INTO LOSSES IN THE FIRST TWO MONTHS OF 1993 EUROPEAN CAR REGISTRATIONS DROPPED 20 FROM 1992 LEVELS SOME ANALYSTS SAY 1993 LOSSES COULD RUN AS MUCH AS 600 MILLION MARKS BUT MR LOPEZ WILL CERTAINLY TAKE RAPID STEPS TO STEM SUCH LOSSES AND GIVEN VW'S CURRENT PURCHASING STRATEGY WHICH INDUSTRY OBSERVERS WIDELY AGREE IS TOO CONSERVATIVE AND FAR TOO HEAVILY GERMANBASED THERE IS AMPLE ROOM FOR IMPROVEMENT MR LOPEZ'S APPOINTMENT WILL SEND SHOCK WAVES THROUGH THE GERMAN COMPONENTSUPPLY INDUSTRY SAID KARL LUDWIGSEN CHAIRMAN OF LUDWIGSEN ASSOCIATES LTD CONSULTANTS TO THE AUTO INDUSTRY IN LONDON VW NEEDS TO USE ITS STRONG DEUTSCHEMARKS TO BUY PARTS FROM CHEAPER COUNTRIES HE SAID WHILE GERMAN PARTS COMPANIES USED TO BE ABLE TO PROVIDE HIGHER QUALITY PRODUCTS THAN THE COMPETITION OTHER COMPANIES NOW OFTEN OFFER THE SAME OR EVEN BETTER QUALITY AT MORE COMPETITIVE PRICES MR LUDWIGSEN NOTED AT GM MR LOPEZ TORE UP OLD CONTRACTS WITH SUPPLIERS AND WRENCHED DOUBLEDIGIT PRICE CUTS FOR THE COMPANY MANY HAD EXPECTED VW'S SUPERVISORY BOARD TO ALSO GIVE INDICATIONS OF ADDITIONAL JOBSHEDDING PROGRAMS AND WERE DISAPPOINTED AT THE ABSENCE OF SUCH ANNOUNCEMENTS THE COMPANY ALREADY HAS SAID IT WILL ELIMINATE 12500 JOBS DURING THE NEXT TWO YEARS BUT DEEPER CUTS STILL ARE EXPECTED 9303170095 930317 BUSINESS BRIEF COASTAL CORP KANSAS REFINERY OPERATIONS 10 OF CAPACITY TO BE SHUT COASTAL CORP HOUSTON SAID IT WILL SHUT DOWN TWO REFINERY OPERATIONS IN KANSAS AND IT WILL ALSO IDLE ITS LEASED REFINERY IN AUGUSTA KAN COASTAL SAID THE KANSAS OPERATIONS REPRESENT ABOUT 10 OF THE DIVERSIFIED ENERGY COMPANY'S REFINERY CAPACITY COASTAL SAID IT'S CLOSING THE REFINERIES IN WICHITA AND EL DORADO BECAUSE THEY WOULD REQUIRE INCREASED INVESTMENTS TO COMPLY WITH THE CLEAN AIR ACT THE DOMESTIC REFINING MARKET HAS ALSO BEEN SLUGGISH COASTAL ALSO SAID ITS REFINING & MARKETING UNIT WOULD CUT STAFF TO 60 EMPLOYEES FROM 293 AS A RESULT OF THESE MOVES 9303170094 930317 LEISURE & ARTS ARCHITECTURE FACELIFT FOR PONTI'S MUSEUM BY EVE M KAHN DENVER WHENEVER TRENDS SHIFT AND ARCHITECTS SEEK A FRESH PATH THEY MAKE SOME MISTAKES AND BUILD DEAD ENDS PERHAPS THE MOST AMBITIOUS AND INTRIGUING OF ALL THOSE DEAD ENDS IN THE US IS THE DENVER ART MUSEUM DESIGNED IN 1971 BY GIO PONTI THE FREESPIRITED ITALIAN CREATOR OF EVERYTHING FROM ESPRESSO MACHINES TO COLLECTIONS OF POEMS ABOUT CLOUDS THE STRUCTURE HAS DRAWN SUCH FAINT PRAISE FROM DENVER RESIDENTS AS A PERIOD PIECE AND AT LEAST IT'S ORIGINAL PONTI CLAIMED THAT THE STRUCTURE HAD NO PRECEDENT AND BY NOW WE KNOW THAT IT WILL LIKEWISE BEAR NO OFFSPRING CLAD IN DULLGRAY CERAMIC TILE IT SPORTS TWO SQUARISH TOWERS JOINED LIKE SIAMESE TWINS AT A CORNER A RANDOM ASSORTMENT OF POPPEDOUT AND SETIN SKINNY WINDOWS THAT HAVE BEEN COMPARED WITH 1970S COMPUTER CARDS AND A PARAPET ON WHICH SWOOPS AND SAWTEETH ALTERNATE IT'S ALL TERRIBLY UNRESOLVED BRAVELY FUMBLING FOR SOME ALTERNATIVE TO THE LE CORBUSIER CLONES THAT PONTI AND COLLEAGUES SPENT MOST OF THE 20TH CENTURY PRODUCING AND IT HAS JUST RECEIVED A TRIBUTE THAT WOULD HAVE MADE PONTI A FERVENT LIFELONG ANTIPRESERVATIONIST HOWL HIS GRAY ELEPHANT HAS JUST UNDERGONE A 93 MILLION FACELIFT PONTI BELIEVED THAT THE URGE TO SAVE OLD BUILDINGS CAME FROM A LACK OF CONFIDENCE IN THE NEW AND EVEN A LACK OF TRUST IN CHANCE ACCORDING TO HIS DAUGHTER AND BIOGRAPHER LISA PONTI NO NONTHUGS FOLLOW HIS CREDO ANYMORE OF COURSE IN FACT IRONICALLY THE GRACIOUS NEW GALLERIES HERE ALMOST SPOIL THEMSELVES IN THEIR HURRY TO HONOR PONTI'S HALFBAKED ORIGINAL SCHEME ALL HE DID WAS PLAN THE EXTERIOR AND THE FOOTPRINT THE MUSEUM'S TIGHT FINANCES COULD NOT EVEN AFFORD CONSTRUCTIONSITE VISITS FROM HIM AND RESERVED THE HANDSON WORK FOR PLODDING LOCAL ARCHITECT JAMES SUDLER BOTH IM PEI AND LE CORBUSIER HAD TURNED DOWN THE COMMISSION BEFORE IT WAS OFFERED TO PONTI PARTLY BECAUSE OF THE OBLIGATION TO LET THE HAPLESS SUDLER EXECUTE THEIR DESIGN BUT PONTI'S UNMISTAKABLE FLAIR DID MANAGE TO EMERGE IN MANY PATCHES SWIRLS OF FLAT TILE GLISTENING AT CERTAIN SUN ANGLES AMID FIELDS OF PYRAMIDAL TILE A SIDEWALK RAILING'S STEEL RIBS AS DELICATE AS PONTI'S LITHELEGGED DESKS A TUBULARSTEEL ENTRANCE THAT JOYOUSLY CONTRADICTS ALL THE SURROUNDING PERPENDICULARITY INDOORS HOWEVER LIFELESSNESS HAS PREVAILED FOR TWO DECADES OTTO BACH THE MUSEUM'S DIRECTOR FROM 1944 TO 1974 DETESTED NATURAL LIGHT IN GALLERIES AND HAD BLOWN HIS WHOLE BUDGET ON BASIC CONSTRUCTION SO THE CHEESIEST WHITE SHOEBOXES AND LATER SOME POMPOUSLY ORNAMENTED ONES DIVIDED THE FLOORS CUTTING OFF ALL WINDOWS AND ANY SENSE OF PONTI'S EXUBERANT POLYGONS THAT DISRESPECT FADED SOMEWHAT A DECADE AGO WHEN DESIGNERS REVAMPED THE THIRD FLOOR'S TABLEAUX OF AMERICAN INDIAN ARTIFACTS TO EXPOSE A FEW WINDOWS AND THIS MONTH THE RENOVATED FOURTH AND FIFTH FLOORS REOPENED IN DESIGNS BY GEORGE SEXTON ASSOCIATES THAT DISPLAY THE MUSEUM'S STRONGEST SUITS PRECOLUMBIAN ANTIQUITIES SPANISH COLONIAL ARTIFACTS AND ASIAN ART AND THAT PAY ONTHEIRKNEES HOMAGE TO PONTI AT TIMES THE NEW GALLERIES VERGE ON THE INSPIRED ONE CEILING GRID PER FLOOR HANGS ABOVE THREEQUARTERHEIGHT DIVIDERS THAT RARELY TOUCH EXTERIOR WALLS SO VISITORS CAN KNOW WHERE THEY STAND IN THE DOUBLESQUARE PLAN COLORS ARE SOOTHING MAINLY IN THE BEIGETOROSE RANGE AND LET THE ART STAR NO MOLDINGS OR BASEBOARDS GUSSY UP THE WALLS BLACKLEATHERUPHOLSTERED MIESOID BENCHES KEEP UP THE LATEMODERNIST MOOD AND EVEN THE RENOVATED BATHROOMS RETAIN THEIR FASHIONABLEAGAIN '70S TILE PATTERNS OF WALLWIDE CRISSCROSSES BUT THEN THE WINDOWS MUDDLE EVERYTHING PONTI NEVER KNEW HOW THEY WOULD BE VIEWED FROM THE INSIDE AND THERE SEEMS TO BE NO RIGHT WAY TO CREATE ROOMS AT THEIR FEET EVERY NEWLY WALLEDOFF WINDOW COMPOSITION SEEMS SOMEHOW UNBALANCED YOU CAN PICTURE A MALEVICH OR A MONDRIAN FRANTICALLY REARRANGING ALL THE RECTANGLES WORSE THE DESIGNERS FELT COMPELLED TO EXPOSE STUBBY HALLWAYS THAT DIE OUT AT OPAQUE WINDOWS AND THEY ALSO REVEALED EQUALLY SENSELESS TWOFOOTDEEP SILLS FOR WAISTHIGH WINDOWS THAT POINT AT PARKING LOTS INSTEAD OF THE NEARBY ROCKIES CLEARLY PONTI WAS OPERATING OUT OF SHEER PLAYFULNESS WITH LITTLE OPPORTUNITY TO MAKE HIS PLAN FIT ITS SITE SO WHY NOT MAKE CHANGES WHY NOT KEEP ON INNOVATING WHERE HE LEFT OFF INSTEAD TOM GALLAGHER PROJECT MANAGER WITH SEXTON ASSOCIATES REVERENTIALLY POSITS THAT PONTI WAS INTERESTED IN HAVING WINDOWS FOR WINDOWS' SAKE AS OPPOSED TO HAVING SOMETHING THAT WAS ALWAYS A PERFECT VIEW AND THAT THE FENESTRATION IS ONE OF THE MOST POETIC FORM GIVERS FOR THE BUILDING THE MUSEUM'S ARCHITECTURE AND DESIGN CURATOR R CRAIG MILLER HANDLED THE LOBBY AND RESTAURANT RENOVATION ON THE FIRST FLOR UNFORTUNATELY WITHOUT SEXTON ASSOCIATES' LUXURY OF WINDOWTOWINDOW GUTTING MR MILLER ADDED SWATHS OF PRIMARY COLOR AND OVERSIZE '70SSTYLE LETTERED GRAPHICS TO THE WALLS BUT THE EFFORT GETS LOST IN THESE UNREDEEMABLY BORING SPACES THE MUSEUM MAY GIVE THEM A CLEAN OVERHAUL SOMEDAY AND IT MAY YET DISCARD THE SIXTH FLOOR'S OVERBLOWN POSTMODERN BOXES FOR AMERICANA MAKING ALL SUCH PERPETUAL UPDATING POSSIBLE IS PONTI'S INCLUSION OF A MERE FOUR STRUCTURAL COLUMNS PER FLOOR THAT REMARKABLY SMALL NUMBER IS ALMOST EERIE IT'S AS IF PONTI KNEW ALL ALONG THAT NO PERMANENT SET OF INTERIOR FITTINGS COULD EVER SUIT THIS MONUMENT TO A MOMENT OF CONFUSION 9303170092 930317 OHIO INCINERATOR IS CLEARED FOR COMMERCIAL OPERATION WASHINGTON A FEDERAL APPEALS COURT IN CINCINNATI SAID A HAZARDOUS WASTE INCINERATOR IN EAST LIVERPOOL OHIO MAY BEGIN COMMERCIAL OPERATION THE DECISION PARTLY OVERTURNS A COURT RULING LAST WEEK IN CLEVELAND THAT SAID THE INCINERATOR OWNED BY A UNIT OF VON ROLL LTD MAY CONDUCT A TEST BURN BUT MAY NOT BEGIN COMMERCIAL OPERATION UNTIL THE ENVIRONMENTAL PROTECTION AGENCY AFFIRMED THE FACILITY WAS SAFE THE COMPANY BEGAN ITS TEST BURN MARCH 9 AND A SPOKEWOMAN SAID THE TEST WOULD CONTINUE THROUGH TOMORROW OR FRIDAY FOLLOWING YESTERDAY'S DECISION THE FIRM EXPECTS TO BEGIN COMMERCIAL OPERATION SOON PENDING COMPLETION OF SOME TECHNICAL ANALYSIS BY EPA THE INCINERATOR ATTRACTED NATIONAL ATTENTION LAST DECEMBER WHEN AL GORE THEN VICE PRESIDENTELECT VOWED THE CLINTON ADMINISTRATION WOULDN'T ALLOW THE PLANT TO CONDUCT A TEST BURN UNTIL QUESTIONS ABOUT SAFETY AND ALLEGED PROCEDURAL IRREGULARITIES WERE RESOLVED SIMULTANEOUSLY MR GORE ORDERED A GENERAL ACCOUNTING OFFICE STUDY OF THE PLANT THAT HASN'T YET BEEN COMPLETED THE INCINERATOR IS 1100 FEET FROM AN ELEMENTARY SCHOOL BUT THE BUSH ADMINISTRATION APPROVED THE TEST BURN BEFORE IT DEPARTED OFFICE SINCE THEN THE MATTER HAS BEEN THE SUBJECT OF LEGAL WARFARE BETWEEN THE COMPANY AND ENVIRONMENTAL OPPONENTS LED BY GREENPEACE YESTERDAY'S ACTION ISN'T LIKELY TO END THE TUG OF WAR THE RULING MERELY STAYS THE INJUNCTION OF THE LOWER COURT AGAINST COMMERCIAL OPERATION PENDING APPEAL 9303170091 930317 LAW CHANEL ALLEGES EXPERTS IT HIRED TO TRACK FRAUD SCHEMED AGAINST FIRM NEW YORK CHANEL INC SAYS SECURITY EXPERTS IT HIRED TO TRACK DOWN AND DESTROY KNOCKOFFS OF ITS LUXURY GOODS COMMITTED A MASSIVE FRAUD OF THEIR OWN CHANEL THE CLOSELY HELD AMERICAN AFFILIATE OF THE PARIS FASHION HOUSE OF THE SAME NAME FILED A CIVIL RACKETEERING LAWSUIT AGAINST ITS FORMER DIRECTOR OF SECURITY ALFRED VETTER AND ANOTHER SECURITY EXPERT JAMES GOLDEN CHANEL ALLEGES THAT MR VETTER WHO WAS HIRED IN 1991 AND PAID AN ANNUAL SALARY OF 150000 AND MR GOLDEN WHO WORKED INDEPENDENTLY WITH THE SECURITY CHIEF DID EVERYTHING FROM FILING FALSE BILLS TO SELLING ON THEIR OWN THE FAKES THAT THEY CONFISCATED FROM STREET VENDORS CHANEL IS SEEKING AT LEAST 500000 IN COMPENSATORY DAMAGES AND ANOTHER 1 MILLION IN PUNITIVE DAMAGES BUT STEVEN M SWIRKSY AN ATTORNEY FOR CHANEL SAID THAT THE DAMAGE ESTIMATE IS CONSERVATIVE AND LIKELY TO RISE MR SWIRSKY ALSO SAID THAT CHANEL MAY NAME MORE DEFENDANTS ELITE FASHION HOUSES SPEND MILLIONS OF DOLLARS TO COMBAT COUNTERFEITS OF THEIR GOODS OFTEN SUING MANUFACTURERS AND VENDORS WHO SPECIALIZE IN COUNTERFEITS BUT MR SWIRSKY SAID THIS IS THE FIRST TIME CHANEL HAS FILED A FRAUD ACTION AGAINST PEOPLE HIRED TO FIGHT FRAUD THE SUIT ARISES FROM CHARGES THAT FIVE CURRENT AND FORMER NEW YORK CITY POLICE OFFICERS STOLE THOUSANDS OF FAKE CHANEL HANDBAGS THAT HAD BEEN IMPOUNDED AS EVIDENCE MESSRS VETTER AND GOLDEN WORKED WITH POLICE IN THE ORIGINAL OPERATION THAT BROUGHT IN THE BAGS BUT ACCORDING TO CHANEL'S COMPLAINT THEY ALSO SCHEMED TO PROFIT FROM THE SALES OF THE BAGS AFTER THEY WERE STOLEN FROM THE POLICE EVIDENCE POUND MESSRS VETTER AND GOLDEN HAVEN'T BEEN CHARGED WITH ANY CRIMINAL WRONGDOING MR VETTER DIDN'T RETURN A PHONE CALL SEEKING COMMENT MR GOLDEN'S PHONE NUMBER IS UNLISTED AND HE COULDN'T BE REACHED FOR COMMENT 9303170089 930317 ENTERPRISE CLINTON NOMINATES INVESTMENT BANKER TO BE HEAD OF SBA BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON NOMINATED ERSKINE BOWLES A NORTH CAROLINA INVESTMENT BANKER AND A FUND RAISER FOR THE CLINTON PRESIDENTIAL CAMPAIGN TO HEAD THE SMALL BUSINESS ADMINISTRATION MR CLINTON HAS PLEDGED REPEATEDLY TO GIVE SMALL BUSINESS ISSUES A HIGHER PRIORITY IN HIS ADMINISTRATION BUT IN A BRIEF TELEPHONE INTERVIEW THE NOMINEE DECLINED TO SAY HOW THE SBA ADMINISTRATOR'S ROLE MIGHT BE AFFECTED BY THAT PROMISE IT'S BEEN MADE CLEAR TO ME HE'LL PROVIDE THE SBA ADMINISTRATOR A PLACE AT THE TABLE MR BOWLES SAID I'M CONFIDENT WITH THE RELATIONSHIP I HAVE WITH HIM HE'LL HAVE FULL KNOWLEDGE OF A DECISION'S EFFECT ON SMALL BUSINESS MR BOWLES SAID HE WILL DECIDE ON HIS PLANS FOR THE AGENCY AFTER MEETING WITH THE SBA'S STAFF AND WITH MANY SMALL BUSINESS OWNERS TO DETERMINE THEIR NEEDS MR BOWLES CHARACTERIZED HIMSELF AS SOMEONE WHO'S NOT A POLITICIAN BUT A BUSINESSMAN WHO BELIEVES IN SETTING GOALS AND OBJECTIVES THE NOMINATION IS SUBJECT TO SENATE CONFIRMATION MR BOWLES THE FOUNDER AND PRESIDENT OF BOWLES HOLLOWELL CONNER & CO A CHARLOTTE NC INVESTMENT BANKING CONCERN SERVING SMALL AND MEDIUMSIZED COMPANIES RAISED MONEY FOR THE CLINTON CAMPAIGN IN THE SOUTHEAST MR BOWLES WHO IS 47 BEGAN HIS CAREER AT MORGAN STANLEY & CO A NEW YORK INVESTMENT FIRM BEFORE MOVING BACK TO HIS NATIVE NORTH CAROLINA AND ESTABLISHING HIS OWN COMPANY 9303170088 930317 RULE OF LAW FREEDOM FROM DOUBLE JEOPARDY OUR LOST LIBERTY BY RONALD J ALLEN PROFOUNDLY IMPORTANT PRINCIPLES ON OCCASION COME IN PLAIN WRAPPING THE DOUBLE JEOPARDY CLAUSE OF THE BILL OF RIGHTS IS A GOOD EXAMPLE NOTWITHSTANDING ITS PLACE AMONG THE OTHER HALLOWED RIGHTS OF THE FIFTH AMENDMENT THE RIGHT NOT TO BE SUBJECT FOR THE SAME OFFENSE TO BE TWICE PUT IN JEOPARDY OF LIFE OR LIMB DOES NOT LOOM LARGE IN THE POPULAR CONCEPTION OF BASIC LIBERTIES THE RIGHTS TO PRIVACY TO FREEDOM OF SPEECH TO WORSHIP IN THE MANNER OF ONE'S CHOOSING THE RIGHTS TO COUNSEL AND TO BE FREE FROM COMPELLED SELFINCRIMINATION THESE ARE THE RIGHTS THAT TODAY FORM OUR PANTHEON AND FOR GOOD REASON FOR THE PAST TWO GENERATIONS THEY HAVE BEEN THE FOCUS OF INTENSE POLITICAL CONTROVERSY THAT HAS CALLED INTO QUESTION THEIR MEANING THUS HIGHLIGHTING THEIR SIGNIFICANCE DOUBLE JEOPARDY BY CONTRAST HAS SEEMINGLY PROVOKED ONLY ARCANE LEGAL CONTROVERSIES UNTIL RECENTLY TWO CASES FROM OPPOSITE ENDS OF THE COUNTRY CALL ATTENTION TO THE FUNDAMENTAL VALUES THAT UNDERLIE THE DOUBLE JEOPARDY CLAUSE THE RODNEY KING CASE IN LOS ANGELES IS OF COURSE ONE FOUR POLICE OFFICERS ARE BEING TRIED IN FEDERAL COURT FOR THE SAME ACTS THAT FORMED THE BASIS OF THEIR ACQUITTALS IN CALIFORNIA IN THE EAST RONALD GILLIS ACQUITTED OF A MURDER IN DELAWARE IS NOW UNDER INDICTMENT FOR THE SAME MURDER IN MARYLAND THE POLICIES UNDERLYING THE DOUBLE JEOPARDY CLAUSE ARE CLEARLY VIOLATED IN BOTH CASES WITHOUT A PROHIBITION OF TWICE BEING PUT IN JEOPARDY A CITIZEN IS AT THE UNBRIDLED MERCY OF THE STATE UNCONSTRAINED THE STATE CAN CREATE AN UNENDING HELL OF ANXIETY THAT DISRUPTS LIVES AND DEPLETES RESOURCES STILL THE SUPREME COURT HAS HELD THAT THE DOUBLE JEOPARDY CLAUSE OPERATES ONLY WITHIN AND NOT BETWEEN SOVEREIGN ENTITIES AND THAT STATES ARE BOTH SOVEREIGN WITH RESPECT TO EACH OTHER AND WITH RESPECT TO THE FEDERAL GOVERNMENT FOR DOUBLE JEOPARDY PURPOSES THE ORIGINS OF THE RULE ALLOWING MULTIPLE PROSECUTIONS KNOWN AS THE DUAL SOVEREIGNTY EXCEPTION TO DOUBLE JEOPARDY GO BACK A CENTURY AND A HALF IN THE DECADES PRECEDING THE CIVIL WAR THE COUNTRY WAS TEARING ITSELF APART OVER SLAVERY THE FEDERAL GOVERNMENT ATTEMPTED TO PROTECT THE PROPERTY RIGHTS OF SOUTHERNERS THROUGH FUGITIVE SLAVE LAWS THAT FORBADE RENDERING ASSISTANCE TO RUNAWAY SLAVES NORTHERN STATES PASSED SIMILAR STATUTES TRIED THEIR CITIZENS UNDER THEM OBTAINED CONVICTIONS AND ESSENTIALLY IMPOSED NO PUNISHMENT THESE SHAM STATE CONVICTIONS WERE THEN ASSERTED TO BE DOUBLE JEOPARDY AGAINST PROSECUTIONS BROUGHT BY THE FEDERAL GOVERNMENT FOR THE SAME ACTS THE SUPREME COURT SEARCHED FOR A WAY TO DEFUSE THIS VOLATILE SITUATION AND FOUND IT IN THE DUAL SOVEREIGNTY EXCEPTION THAT PERMITS BOTH JURISDICTIONS TO PROSECUTE THE SUPREME COURT ALSO ASSERTED THAT CERTAIN ASPECTS OF THE RELATIONSHIP BETWEEN STATES AND THE FEDERAL GOVERNMENT JUSTIFY A DUAL SOVEREIGNTY EXCEPTION STATE AND FEDERAL GOVERNMENTS HAVE DIFFERENT INTERESTS IT SAID THE STATES ARE CONCERNED MAINLY WITH EXERCISING POLICE POWERS WHEREAS THE FEDERAL GOVERNMENT IS CONCERNED MAINLY WITH THE ECONOMY AND NATIONAL DEFENSE FURTHER THE FEDERAL GOVERNMENT AND A STATE WILL SHARE JURISDICTION OVER THE STATE'S TERRITORY THUS POTENTIALLY LEADING TO CONFLICTS THAT ON OCCASION CAN BE RESOLVED ONLY BY MULTIPLE PROSECUTIONS ALL THIS MAY NOT JUSTIFY THE DUAL SOVEREIGNTY EXCEPTION BUT IT EXPLAINS IT BUT TODAY THE COUNTRY IS NO LONGER ON THE BRINK OF DISINTEGRATION AND THE INTERESTS OF STATE AND FEDERAL GOVERNMENTS HAVE CONVERGED EVEN IF SOME PLAUSIBLE ARGUMENTS CAN BE MADE FOR THE DUAL SOVEREIGNTY EXCEPTION IN THE STATEFEDERAL CONTEXT VIRTUALLY NONE CAN BE MADE IN THE STATESTATE CONTEXT STATES HAVE HIGHLY ANALOGOUS INTERESTS AND DO NOT SHARE EXTENSIVE TERRITORIAL JURISDICTION THE POSSIBILITY OF CONFLICT IS VIRTUALLY NONEXISTENT TOO BAD SAID THE SUPREME COURT EIGHT YEARS AGO IN HEATH V ALABAMA WHERE THESE ARGUMENTS WERE PRESSED UPON THEM BY ME NO THE COURT SAID WE HAVE A RULE THE DUAL SOVEREIGNTY EXCEPTION A RULE IS A RULE AND WE APPLY IT HERE THE SUPREME COURT'S DECISION IS HIGHLY REGRETTABLE TODAY ONLY IN THE RAREST CASE DOES A PROSECUTION BY ONE GOVERNMENT NOT VINDICATE ALL THE RELEVANT GOVERNMENTAL INTERESTS IN AN ACT GIVEN THE COMPLEXITIES OF MODERN LIFE PERHAPS THERE SHOULD BE AN EXCEPTION TO THE DOUBLE JEOPARDY CLAUSE TO ACCOMMODATE CASES OF INTERSOVEREIGN CONFLICT BEYOND THAT HOWEVER THE ONLY JUSTIFICATION FOR BRINGING A SECOND PROSECUTION BASED UPON A CRIMINAL ACT PREVIOUSLY PROSECUTED IS IF A STATE'S CRIMINAL JUSTICE SYSTEM IS SYSTEMATICALLY CORRUPT THAT MIGHT HAVE BEEN SO THREE DECADES AGO IN THE SOUTH IN CIVIL RIGHTS CASES AND 150 YEARS AGO IN THE FUGITIVE SLAVE CASES BUT IT IS NOT THE CASE TODAY IN EITHER CALIFORNIA OR DELAWARE THE OFFICERS IN THE KING CASE AND RONALD GILLIS ARE BEING RETRIED BECAUSE OF A PERCEPTION THAT THE OUTCOMES IN THEIR FIRST TRIALS WERE WRONG NOR ARE THERE ANY SEPARATE GOVERNMENTAL INTERESTS AT STAKE IN THE SECOND TRIALS NOT VINDICATED IN THE FIRST THIS IS NOT LIKE A STATE PROSECUTION FOR BANK ROBBERY BECAUSE OF THE STATE'S INTEREST IN MAINTAINING THE PEACE FOLLOWED BY A FEDERAL PROSECUTION BECAUSE OF THAT GOVERNMENT'S INTEREST IN PROTECTING INTERSTATE BANKING THESE ARE CASES OF RETRIALS FOR THE SAME ACTS OF VIOLENCE BROUGHT TO VINDICATE A GENERAL INTEREST IN MAINTAINING THE PEACE JUSTIFYING BOTH RETRIALS THEN IS ANOTHER PRINCIPLE ONE THAT I HAD HOPED WE HAD REJECTED LONG AGO THAT PRINCIPLE IS THAT WHEN SOMEBODY IS GUILTY WE GIVE HIM A FAIR TRIAL AND HANG HIM APPARENTLY THE MODERN VERSION OF THIS PRINCIPLE IS THAT WE KEEP GIVING HIM FAIR TRIALS UNTIL WE GET THE CONVICTION WE NEED TO HANG HIM LEGALLY WHEN SO EXPRESSED THE VIOLATION OF FUNDAMENTAL HUMAN RIGHTS IN THE KING AND GILLIS CASES BECOMES CLEAR THE CASES ARE BEING RETRIED BECAUSE PEOPLE WHO DID NOT HEAR THE EVIDENCE AT THE FIRST TRIALS HAVE NEVERTHELESS CONCLUDED THAT THE DEFENDANTS ARE GUILTY THIS IS WRONG THE RULE OF LAW REQUIRES THAT WE LIVE WITH THE VERDICTS WHETHER OR NOT WE LIKE THEM MOST PROSECUTING AUTHORITIES AGREE WITH THIS PRINCIPLE WHEN THE VERDICT IS A CONVICTION IRONICALLY SO DOES THE SUPREME COURT WHICH RECENTLY HELD THAT THE LOWER FEDERAL COURTS NEED NOT UNDER CERTAIN CIRCUMSTANCES ENTERTAIN HABEAS CORPUS PETITIONS ALLEGING ACTUAL INNOCENCE HOW CAN WE TELL CONVICTED DEFENDANTS THAT THEIR CONVICTIONS ARE FINAL EVEN IN THE FACE OF CLAIMS OF ACTUAL INNOCENCE BUT TELL THE ACQUITTED THAT THEY MAY FACE RETRIAL BECAUSE SOME PEOPLE THINK THE FIRST VERDICT WAS IN ERROR FOR THAT MATTER HOW CAN WE EXPLAIN THE DIFFERENCE BETWEEN AN OLDFASHIONED LYNCHING AND WHAT THE PROSECUTORS ARE TRYING TO DO UNDER THE COVER OF LEGAL FORMALISM IN THE KING AND GILLIS CASES NO AMOUNT OF RATIONALIZING CAN EXPLAIN AWAY THIS BLIGHT ON OUR JURISPRUDENCE MR ALLEN IS A PROFESSOR AT NORTHWESTERN'S SCHOOL OF LAW 9303170087 930317 ROSS COSMETICS GETS HOLDER VOTE TO CHANGE NAME TO TRISTAR CORP SAN ANTONIO TEXAS STILL STRUGGLING TO SCRAMBLE OUT FROM UNDER THE SHADOW OF A CONTINUING SECURITIES AND EXCHANGE COMMISSION INVESTIGATION INTO ITS STOCK OWNERSHIP ROSS COSMETICS DISTRIBUTION CENTERS INC SAID ITS SHAREHOLDERS HAD APPROVED CHANGING THE COMPANY'S NAME TO TRISTAR CORP IN A NEWS RELEASE CHAIRMAN RICHARD P RIFENBURGH SAID THE CHANGE MARKS THE SEPARATION FROM THE COMPANY'S PAST LEGAL AND MANAGEMENT PROBLEMS THE COSMETICS CONCERN WHICH RECENTLY MOVED ITS HEADQUARTERS TO TEXAS FROM DUNCAN SC ALSO SAID THAT IT PLANNED TO INTRODUCE 95 NEW FRAGRANCE AND COSMETIC PRODUCTS AS PART OF AN EFFORT TO MOVE BEYOND ITS TRADITIONAL WHOLESALE MARKET AND TARGET RETAIL MASS MERCHANTS AND DEPARTMENT STORE CHAINS FOLLOWING AN INTERNAL INVESTIGATION A COMMITTEE OF THE COMPANY'S OUTSIDE DIRECTORS REPORTED LAST OCTOBER THAT FORMER COMPANY OFFICIALS HAD DISREGARDED DISCLOSURE REQUIREMENTS IN LETTING ITS MAIN SUPPLIER S&J PERFUME CO LONDON SECRETLY GAIN CONTROL OF 63 OF ROSS COSMETICS' STOCK THE FORMAL SEC INVESTIGATION INTO THE COMPANY'S DISCLOSURES WAS LAUNCHED LAST JUNE THE COMPANY ALSO SAID ITS SALES FOR THE SECOND FISCAL QUARTER ENDED FEB 29 ROSE 94 TO 128 MILLION FROM 117 MILLION THE COMPANY SAID IT PLANS TO RELEASE EARNINGS FOR THE PERIOD NEXT WEEK 9303170086 930317 INTERNATIONAL BRITISH BUDGET PROPOSES SPENDING NOW OFFSET BY TAX INCREASES OVER TWO YEARS BY NICHOLAS BRAY AND GLENN WHITNEY STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT UNVEILED A BUDGET FOR THE UK THAT BALANCES TAX INCREASES STAGGERED OVER THE NEXT TWO YEARS AGAINST IMMEDIATE MEASURES TO AID JOB SEEKERS AND BUSINESSES AS A RESULT THE PACKAGE IS EXPECTED TO PRODUCE A BROADLY NEUTRAL TAX IMPACT IN THE FISCAL YEAR THAT STARTS NEXT MONTH THE CHANCELLOR DESCRIBED THE PACKAGE AS A MEDIUMTERM STRATEGY TO ENSURE ECONOMIC RECOVERY WITHOUT PROVOKING A DAMAGING SURGE IN INFLATION AFTER THREE YEARS OF DEEP RECESSION HE SAID BRITAIN IS ON THE VERGE OF AN UPTURN IN POLITICAL TERMS THE BUDGET WAS A BID BY PRIME MINISTER JOHN MAJOR TO REGAIN THE POLITICAL INITIATIVE AFTER MONTHS OF SETBACKS AND WRANGLING WITHIN HIS CONSERVATIVE PARTY THAT HAVE SEVERELY WEAKENED HIS NATIONAL STANDING WALKING A TIGHTROPE BETWEEN HARSH MEASURES TO CURB BRITAIN'S SOARING GOVERNMENT DEFICIT AND THE NEED TO FOSTER A STILL FRAGILE ECONOMIC REVIVAL MR LAMONT ANNOUNCED IMMEDIATE INCREASES IN TAXES ON BEER WINE GASOLINE CIGARETTES AND GAMBLING MACHINES BUT HE LEFT THE TOP RATE OF INCOME TAX UNCHANGED AT 40 ON TAXABLE INCOMES OVER ABOUT 29000 AT THE LOWEST END OF THE INCOME SCALE MR LAMONT INCREASED THE NUMBER OF INDIVIDUALS TAXED AT THE LIMITED 20 TAX RATE INTRODUCED LAST YEAR ALONGSIDE THE STANDARD 25 RATE ON INCOMES BELOW 29000 THE CONSERVATIVE PARTY GOVERNMENT'S LONGTERM GOAL IS TO MAKE 20 THE STANDARD RATE THE TAX INCREASES ARE TO BE COUNTERBALANCED BY CUTS IN TAXES FOR BUSINESSES AND EXTRA SPENDING ON TRAINING PROGRAMS AND OTHER MEASURES TO ASSIST THE UNEMPLOYED THESE INCLUDE EXTRA INCENTIVES TO HELP PEOPLE START THEIR OWN BUSINESSES AND INTRODUCTION OF A SYSTEM ALLOWING THE UNEMPLOYED TO PARTICIPATE IN PARTTIME PAID SOCIAL WORK MR LAMONT SAID THE GOVERNMENT ALSO WOULD EXPERIMENT WITH A PLAN TO ENCOURAGE EMPLOYERS TO HIRE CHRONICALLY UNEMPLOYED YOUNG PEOPLE UNDER THE PLAN EMPLOYERS WOULD RECEIVE A TEMPORARY SUBSIDY EQUAL TO THE UNEMPLOYMENT BENEFITS THESE WORKERS WOULD HAVE RECEIVED RATHER THAN PUTTING AN IMMEDIATE BRAKE ON BRITAIN'S SOARING PUBLICSECTOR BORROWING AS MOST BUSINESS ECONOMISTS HAD EXPECTED MR LAMONT MADE CLEAR THAT HE'S READY TO ACCEPT A HIGH RATE OF BORROWING IN THAT SECTOR TO FOSTER ECONOMIC RECOVERY IN FISCAL 199394 HE SAID PUBLICSECTOR BORROWING IS EXPECTED TO RISE TO A STAGGERING 50 BILLION 7175 BILLION OR 8 OF THE NATION'S GROSS DOMESTIC PRODUCT FROM 35 BILLION IN 199293 THE GOVERNMENT BOND MARKET REACTED BADLY TO MR LAMONT'S ESTIMATES FOR 199394 PUBLICSECTOR BORROWING NEEDS WITH PRICES OF MOST GOVERNMENT BONDS OR GILTS FALLING BY NEARLY A FULL PERCENTAGE POINT THE BENCHMARK TREASURY 9 ISSUE DUE 2008 WAS QUOTED IN LATE TRADING AT 106 31/32 DOWN 875 TRADING ON THE LONDON STOCK EXCHANGE FINISHED BEFORE THE CHANCELLOR ENDED HIS PRESENTATION WITH THE FTSE 100 INDEX ENDING OFF 310 POINTS AT 291930 INDICATIONS ON THE FUTURES MARKET IN AFTER HOURS TRADING POINTED TO A 25POINT DROP IN THE INDEX WHEN TRADING RESUMES TODAY 9303170085 930317 BUSINESS BRIEF RH MACY & CO RETAILER REPORTS A PROFIT FOR FISCAL SECOND QUARTER RH MACY & CO POSTED IMPROVED FISCAL SECONDQUARTER RESULTS SAYING IT EARNED 89 MILLION COMPARED WITH A YEAREARLIER LOSS OF 6716 MILLION WHICH REFLECTED HEAVY REORGANIZATION EXPENSES IT SAID SAMESTORE SALES IN JANUARY AND FEBRUARY ROSE 14 AND 59 RESPECTIVELY THE NEW YORKBASED RETAILER WHICH IS OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION SAID TOTAL SALES IN THE QUARTER ENDED JAN 31 EASED TO 204 BILLION FROM 206 BILLION PRIMARILY REFLECTING FEWER STORES MACY SAID IT CONTINUED TO ACHIEVE STRONG SALES GROWTH IN THE SOUTHEAST WASHINGTON DC AND METROPOLITAN NEW YORK AND MODEST GROWTH IN THE PHILADELPHIA AND BALTIMORE AREAS BUT SALES REMAINED WEAK IN NEW YORK'S LONG ISLAND REGION AND IN CALIFORNIA TWO AREAS HAMPERED BY POOR ECONOMIC CONDITIONS WE ARE ENCOURAGED BY THE COMPANY'S SALES GROWTH IN RECENT MONTHS AND BY OUR PROGRESS IN CONTROLLING COSTS AND MANAGING INVENTORIES SAID MYRON E ULLMAN III MACY COCHAIRMAN NEVERTHELESS HE SAID MACY WAS APPROACHING THE SPRING SEASON CAUTIOUSLY GIVEN THE STILL UNCERTAIN ECONOMIC OUTLOOK ESPECIALLY FOR THE WEST COAST AND THE RECENT DISRUPTIVE WEATHER ON THE EAST COAST 9303170084 930317 TECHNOLOGY BRIEF GENENTECH INC FIRM FILES PATENT COMPLAINT OVER SYNTHETIC HORMONE GENENTECH INC SAID IT FILED A COMPLAINT WITH THE US INTERNATIONAL TRADE COMMISSION ALLEGING THAT TWO COMPETITORS HAVE INFRINGED UPON PATENTS COVERING THE PRODUCTION OF ITS SYNTHETIC HUMAN GROWTH HORMONE PRODUCTS THE COMPANIES NAMED IN THE COMPLAINT ARE BIOTECHNOLOGY GENERAL CORP OF NEW YORK AND NOVONORDISK AS OF DENMARK NOVONORDISK OFFICERS IN NEW YORK CITY COULDN'T BE REACHED LATE TUESDAY A BIOTECHNOLOGY GENERAL SPOKESWOMAN RESERVED COMMENT UNTIL THE COMPANY RECEIVED A FORMAL COMMUNICATION ABOUT THE COMPLAINT GENENTECH A BIOTECHNOLOGY FIRM IN SOUTH SAN FRANCISCO HAS MARKETED HUMAN GROWTH HORMONE UNDER THE TRADE NAME PROTROPIN SINCE 1985 FOR THE TREATMENT OF PITUITARY DWARFISM IN CHILDREN A SECOND HUMAN GROWTH HORMONE PRODUCT NUTROPIN IS CURRENTLY BEING EVALUATED FOR SEVERAL GROWTH DEFICIENCIES GENENTECH ASKED THE TRADE COMMISSION TO CONDUCT AN INVESTIGATION AND TO ISSUE A CEASEANDDESIST ORDER AGAINST THE TWO COMPANIES 9303170083 930317 COKE'S POWERADE AND OLYMPICS ATLANTA COCACOLA CO SAID ITS SPORTS DRINK POWERADE WHICH WILL BE INTRODUCED IN THE NORTHEAST AND WEST THIS SPRING HAS BECOME THE OFFICIAL SPORTS DRINK IN THE US FOR THE OLYMPIC GAMES AND ALSO WILL BE FEATURED AT WORLD CUP SOCCER EVENTS IN ADDITION THE DRINK WILL BE AVAILABLE IN THE ATLANTA BRAVES DUGOUT AND LOCKER ROOM AREAS POWERADE WAS INTRODUCED IN SIX SOUTHERN US MARKETS IN 1992 AND WILL BE LAUNCHED THIS MONTH IN GEORGIA TENNESSEE ALABAMA FLORIDA AND TEXAS 9303170082 930317 BUSINESS BRIEF APPLIED POWER INC HYDRAULIC EQUIPMENT MAKER EXPECTS SLIGHT EARNINGS RISE APPLIED POWER INC SAID IT EXPECTS TO REPORT PERSHARE EARNINGS FOR ITS FISCAL SECOND QUARTER ENDED FEB 28 IN THE RANGE OF 18 CENTS TO 22 CENTS A SHARE COMPARED WITH 20 CENTS A SHARE IN THE SAME QUARTER A YEAR EARLIER RICHARD G SIM CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID SALES FOR THE QUARTER ARE EXPECTED TO BE UP ABOUT 1 TO 86 MILLION FROM 853 MILLION MR SIM SAID THE SALES FIGURES REFLECT GROWTH IN THE US BUT SHRINKAGE IN EUROPE AND ASIA FOR THE SIX MONTHS THE MILWAUKEE MAKER OF HYDRAULIC EQUIPMENT FOR INDUSTRIAL AND MANUFACTURING USE EXPECTS PERSHARE EARNINGS IN THE RANGE OF 44 CENTS TO 48 CENTS A SHARE UP FROM 42 CENTS A SHARE IN THE COMPARABLE PERIOD IN FISCAL 1992 SALES ARE EXPECTED TO RISE 3 TO 178 MILLION FROM 1732 MILLION THE 1992 RESULTS HAVE BEEN RESTATED FOR DISCONTINUED OPERATIONS LAST YEAR THE COMPANY DECIDED TO SELL ITS WRIGHT LINE BUSINESS WHICH MAKES FILING CABINETS AND OTHER OFFICE FURNITURE 9303170081 930317 CAPITAL CITIES STOCK BUYBACK NEW YORK DIRECTORS OF CAPITAL CITIES/ABC INC AUTHORIZED THE REPURCHASE OF ONE MILLION COMMON SHARES TO BE USED UNDER EMPLOYEE STOCK PLANS AND FOR OTHER CORPORATE PURPOSES THE COMPANY HAS PURCHASED MORE THAN 19 MILLION OF ITS SHARES UNDER PREVIOUS BUYBACK PLANS ANNOUNCED IN 1988 AND 1990 THE BROADCASTING PUBLISHING AND CABLE TELEVISION COMPANY HAS 164 MILLION SHARES OUTSTANDING CAPITAL CITIES WAS QUOTED AT 52550 A SHARE UP 1050 IN LATE NEW YORK STOCK EXCHANGE TRADING 9303170080 930317 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION DIALOGIC CORP AN INITIAL OFFERING OF 25 MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC AND ROBERTSON STEPHENS & CO DOSKOCIL COS AN OFFERING OF 100 MILLION OF ITS SENIOR SUBORDINATED NOTES DUE 2000 VIA MERRILL LYNCH & CO INACOM CORP AN OFFERING OF 55 MILLION COMMON SHARES VIA LEHMAN BROTHERS 9303170079 930317 WHO'S NEWS GALVESTONHOUSTON CO GALVESTONHOUSTON CO HOUSTON W L MEDFORD WAS NAMED VICE PRESIDENT AND TREASURER OF THIS DIVERSIFIED MANUFACTURING CONCERN MR MEDFORD WAS FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF SAN JACINTO SAVINGS ASSOCIATION IN HOUSTON HE SUCCEEDS PAMELA L REILAND THE PREVIOUS TREASURER OF GALVESTONHOUSTON WHO IS ON A LEAVE OF ABSENCE 9303170078 930317 TECHNOLOGY BRIEF CENTOCOR INC STUDY SHOWS DRUG REDUCES CERTAIN COMPLICATIONS 35 CENTOCOR INC SAID A NEW RESEARCH STUDY SHOWED THAT ITS EXPERIMENTAL DRUG CENTORX REDUCED HEART ATTACKS AND OTHER COMPLICATIONS FOLLOWING A COMMON PROCEDURE TO OPEN CLOGGED CORONARY ARTERIES AT A SCIENTIFIC SESSION OF THE AMERICAN COLLEGE OF CARDIOLOGY IN ANAHEIM CALIF RESEARCHERS RELEASED THE FIRST ADVANCED HUMAN TESTS OF CENTORX AN ANTIBODYBASED DRUG THAT WORKS BY PREVENTING THE FORMATION OF BLOOD CLOTS IN THE STUDY DOCTORS FOUND THAT PATIENTS TREATED WITH CENTORX FOLLOWING ANGIOPLASTY HAD A 35 LOWER RATE OF COMPLICATIONS THE DOCTORS SAID 128 OF PATIENTS GIVEN A PLACEBO OR INACTIVE DRUG HAD COMPLICATIONS AS COMPARED TO 83 GIVEN CENTORX ANGIOPLASTY IS INCREASINGLY USED TO OPEN ARTERIES FOR PATIENTS AT RISK OF DEVELOPING HEART ATTACKS A SPOKESMAN FOR CENTOCOR SAID THE MALVERNE PA COMPANY PLANS TO SEEK APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET THE DRUG 9303170077 930317 BUSINESS BRIEF BURLINGTON NORTHERN INC UNIT TO SPEND 675 MILLION TO BUY ELECTRIC LOCOMOTIVES BURLINGTON NORTHERN RAILROAD SAID IT WILL SPEND MORE THAN 675 MILLION IN THE NEXT FIVE YEARS ON ELECTRIC LOCOMOTIVES WITH GREATER PULLING POWER ALONG WITH RELATED SERVICES THE LOCOMOTIVES WILL BE ACQUIRED FROM ELECTROMOTIVE A DIVISION OF GENERAL MOTORS CORP WHICH DEVELOPED THE TECHNOLOGY IN PARTNERSHIP WITH SIEMENS TRANSPORTATION SYSTEMS A SUBSIDIARY OF GERMANY'S SIEMENS AG BURLINGTON NORTHERN RAILROAD IS A UNIT OF BURLINGTON NORTHERN INC FORT WORTH TEXAS THE 4000 HORSEPOWER LOCOMOTIVES USE ALTERNATING CURRENT TRACTION AND CAN PULL HEAVIER LOADS WITH LESS FUEL AND FEWER EMISSIONS THAN THE WIDELY USED DIRECT CURRENT LOCOMOTIVES BURLINGTON SAID THIS WOULD MEAN THAT FEWER LOCOMOTIVES WOULD BE NEEDED FOR MANY FREIGHT OPERATIONS OF THE 350 LOCOMOTIVES TO BE ACQUIRED EIGHT WILL BE DELIVERED IN 1993 AND 60 TO 100 ADDITIONAL LOCOMOTIVES WILL BE DELIVERED EACH YEAR FROM 1994 TO 1997 9303170076 930317 TECHNOLOGY UNIX PROGRAM'S SUPPLIERS ADOPT JOINT APPROACH BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL AFTER YEARS OF SQUABBLING THE MAJOR SUPPLIERS OF THE HIGHEND UNIX OPERATING PROGRAM AGREED TO ADOPT A COMMON APPROACH MAKING IT POSSIBLE FOR UNIX APPLICATIONS TO LOOK AND WORK THE SAME ON DIFFERENT COMPUTERS THE NEW ALLIANCE IS BUILT AROUND SUN MICROSYSTEMS INC NOVELL INC AND SANTA CRUZ OPERATION INC EACH OF WHICH CONTROLS A KEY SEGMENT OF THE MARKET FOR UNIX OPERATING PROGRAMS JOINING THE THREE ARE SUN'S ARCHRIVALS INTERNATIONAL BUSINESS MACHINES CORP THE WORLD'S LARGEST COMPUTER MAKER AND HEWLETTPACKARD CO WHICH IN YEARS PAST HAVE GENERALLY AVOIDED WORKING WITH SUN ON SOFTWARE MATTERS AN OPERATING PROGRAM CONTROLS THE BASIC FUNCTIONS OF A COMPUTER IN AN INTERVIEW EXECUTIVES WITH THESE COMPANIES CONCEDED THAT PRESSURE FROM CUSTOMERS AND THE THREAT OF A NEW OPERATING PROGRAM CALLED NT FROM MICROSOFT CORP FORCED THEM TO SET ASIDE THEIR DIFFERENCES CUSTOMERS ARE DEMANDING THAT WE WORK TOGETHER WE HAVE NO CHOICE SAID GARY EICHHORN GENERAL MANAGER OF HEWLETTPACKARD'S WORKSTATION SYSTEMS GROUP BESIDES CHALLENGING MICROSOFT THE NEW UNIX ALLIANCE DEALS A SERIOUS BLOW TO THE ALREADY REELING NEXT INC LED BY STEVEN P JOBS MR JOBS WHO LAST MONTH ABANDONED HIS COMPUTER BUSINESS IN FAVOR OF PUSHING NEXT'S OPERATING PROGRAM HAS BEEN SCRAMBLING TO WIN THE SUPPORT OF SUN HP NOVELL AND OTHERS AND YESTERDAY NEXT CONFIRMED THAT PETER VAN CUYLENBERG NEXT'S PRESIDENT AND MR JOBS'S SECONDINCOMMAND HAD RESIGNED EDWARD ZANDER CHIEF OF SUN'S SOFTWARE UNIT SAID THE ALLIANCE DECIDED TO REJECT MR JOBS'S SOFTWARE AND EMBRACE A SET OF SPECIFICATIONS CALLED AN INTERFACE THAT WILL MAKE APPLICATIONS WRITTEN FOR ANY VARIANT OF UNIX LOOK AND WORK THE SAME TO A CUSTOMER WE NEVER CONSIDERED NEXT BECAUSE THEIR SOFTWARE NEVER DEVELOPED A BIG ENOUGH FOLLOWING MR ZANDER SAID MR ZANDER SAID THE UNIX ALLIANCE SHOULD GAIN MANY ADHERENTS BECAUSE IT SEEKS TO BLEND TOGETHER THE BEST ELEMENTS OF THE DIVERSE PATHS TAKEN BY EACH OF THE MEMBER COMPANIES THE ALLIANCE SHOULD RELEASE INTERFACE SPECIFICATIONS BY JUNE AND MEMBERS HAVE AGREED TO ADOPT EXISTING STANDARDS FOR GRAPHICS MULTIMEDIA AND CERTAIN PROGRAMMING TOOLS HE SAID THERE HAVE BEEN MANY ATTEMPTS TO UNIFY UNIX AND THE MEMBERS OF THE ALLIANCE WERE QUICK TO DISTANCE THEMSELVES FROM THESE WHILE POINTING OUT THAT EACH COMPANY WILL CONTINUE TO DEVELOP DIFFERENT VARIANTS OF THE OPERATING PROGRAM BUT BY TAKING A COMMON APPROACH TO THE INTERFACE AND OTHER KEY PARTS OF UNIX IT WILL BE POSSIBLE TO CREATE APPLICATIONS FOR UNIX MORE QUICKLY AND TO ADAPT THEM TO DIFFERENT VARIANTS OF UNIX MORE EASILY IN PRACTICE THESE COMMON APPROACHES WILL EFFECTIVELY GIVE DEVELOPERS OF UNIX APPLICATIONS A SINGLE TARGET IT ALSO MAKES IT LIKELY THAT A PROGRAM SUCH AS LOTUS DEVELOPMENT CORP'S 123 SPREADSHEET WILL LOOK THE SAME TO A CUSTOMER WHETHER IT APPEARS ON A COMPUTER FROM SUN RUNNING ITS VARIANT OF UNIX OR ON AN IBM MACHINE WITH ITS FLAVOR OF UNIX IT STILL WILL NOT BE POSSIBLE HOWEVER FOR A CUSTOMER TO TAKE A FLOPPY DISK FROM HIS SUN COMPUTER SHOVE IT INTO AN IBM MACHINE AND HAVE IT RUN HIS SUNFLAVORED UNIX APPLICATION BUT THIS WON'T BE POSSIBLE EITHER WITH VERSIONS OF NT WRITTEN FOR PERSONAL COMPUTERS POWERED BY INCOMPATIBLE MICROPROCESSORS ANALYSTS BRIEFED BY THE ALLIANCE YESTERDAY WERE IMPRESSED WITH THE SCOPE AND AMIBITION OF THE PLAN BUT THEY QUESTIONED WHETHER THE COMPANIES COULD DELIVER ON THE PROMISE IT WILL BE A YEAR BEFORE YOU CAN BUY A COMPUTER THAT RUNS THIS SOFTWARE SAID DAVID CARD AN ANALYST AT INTERNATIONAL DATA CORP WHO CLOSELY FOLLOWS THE UNIX MARKET MR CARD ADDED THAT THIS COMMON APPROACH TO UNIX WHILE MUCH NEEDED BY CUSTOMERS AND SOFTWARE WRITERS IS NOT AN NT KILLER BECAUSE NT IS AIMED AT A DIFFERENT SEGMENT OF THE MARKET UNIX HE SAID OWNS THE MIDRANGE AND TECHNICAL COMPUTING MARKET WHILE NT IS EXPECTED TO VIE FOR CONTROL OF THE MARKET FOR COMPUTER SERVERS WHICH SUPPORT NETWORKS OF PERSONAL COMPUTERS THE COMMON APPROACHES TO UNIX WILL BE MADE FREELY AVAILABLE TO COMPANIES NOT IN THE ALLIANCE BUT AT LEAST INITIALLY THE MEMBERS FELT IT WAS IMPORTANT TO KEEP THEIR GROUP SMALL SMALL GROUPS CAN MAKE THINGS HAPPEN QUICKER MR ZANDER SAID NOTICEABLY ABSENT FROM THE GROUP IS DIGITAL EQUIPMENT CORP WHICH IN PAST UNIX WARS HAD ALLIED ITSELF WITH HP AND IBM DIGITAL WHILE NOT ABANDONING UNIX IS BETTING MUCH OF ITS FUTURE IN HIGHEND COMPUTING ON THE SUCCESS OF MICROSOFT'S NT WHICH IS EXPECTED TO BE RELEASED IN MAY WHILE EXECUTIVES WITH COMPANIES IN THE ALLIANCE CREDITED THE CUSTOMERS WITH BRINGING THEM TOGETHER INDUSTRY OBSERVERS PRIVATELY SAID THAT NOVELL AN ARCHRIVAL OF MICROSOFT AND THE WORLD'S BIGGEST SUPPLIER OF SOFTWARE TO TIE TOGETHER PERSONAL COMPUTERS PLAYED A BIG ROLE IN THE RECONCILIATION LAST DECEMBER NOVELL PURCHASED UNIX SYSTEM LABORATORIES INC A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO AND THE CREATOR OF THE ORIGINAL UNIX PROGRAM AT THE TIME RAYMOND NOORDA NOVELL'S CHIEF EXECUTIVE OFFICER VOWED THE DEAL WOULD MAKE IT POSSIBLE FOR HIM TO UNIFY UNIX 9303170075 930317 TECHNOLOGY WANG SUBMITS PLAN TO BECOME SMALLER CONCERN BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON WANG LABORATORIES INC FILED A REORGANIZATION PLAN UNDER WHICH IT WOULD EMERGE FROM BANKRUPTCY COURT PROCEEDINGS AS A MUCH SMALLER COMPANY THAT IS NO LONGER CONTROLLED BY THE FAMILY OF THE LATE COMPANY FOUNDER AN WANG THE COMPANY SAID IT WILL SLASH ITS ALREADY REDUCED WORK FORCE TO 6000 FROM 9300 AND WILL STOP MAKING COMPUTERS INSTEAD FOCUSING ON SOFTWARE AND SERVICES THE TRIMMEDDOWN COMPANY IS EXPECTED TO BE PROFITABLE ON REVENUE OF ABOUT 1 BILLION IN THE YEAR ENDING JUNE 30 1994 WELL BELOW ITS HEYDAY IN THE LATE 1980S WHEN ITS REVENUE EXCEEDED 3 BILLION AND IT EMPLOYED ABOUT 31000 WORKERS WE HAVE REINVENTED A NEW WANG AS A SMALLER MORE FOCUSED COMPANY SAID JOSEPH M TUCCI CHIEF EXECUTIVE OFFICER WANG SAID THE PLAN HAS THE SUPPORT OF MAJOR CREDITORS AND THE COMPANY SHOULD EMERGE FROM BANKRUPTCY PROCEEDINGS IN ABOUT THREE MONTHS THE REORGANIZATION WOULD ELIMINATE ALMOST ALL OF THE COMPANY'S DEBT UNDER THE REORGANIZATION PLAN SECURED CREDITORS ARE EXPECTED TO BE PAID IN FULL THE 50 MILLION THEY ARE OWED WHILE UNSECURED CREDITORS OWED ABOUT 1 BILLION WILL BE ISSUED NEW STOCK GIVING THEM AN INITIAL 100 INTEREST IN THE REORGANIZED COMPANY CURRENT CLASS B AND CLASS C COMMON STOCKHOLDERS INCLUDING THE WANGS WOULD RECEIVE SEVENYEAR WARRANTS FOR NEW SHARES THAT IF FULLY EXERCISED WOULD GIVE THEM A 20 STAKE ACCORDING TO WANG'S REORGANIZATION FILING THE REORGANIZED COMPANY WOULD BE VALUED AT BETWEEN 370 MILLION AND 575 MILLION THE COMPANY SAID THE WARRANTS ARE EXPECTED TO HAVE A VALUE OF ONLY A FEW CENTS EACH WHEN ISSUED MEANING THAT THE WANG FAMILY FORTUNE ONCE ESTIMATED AT 16 BILLION AT THE STOCK'S PEAK WILL BE ALMOST WIPED OUT IF THE WANGS EXERCISE ALL THEIR WARRANTS THEY WOULD OWN 5 OF THE REORGANIZED COMPANY DOWN FROM 244 OF THE STOCK AT THE TIME OF BANKRUPTCY FILING LAST AUGUST THE FAMILY'S VOTING STAKE BEFORE BANKRUPTCY WAS ABOUT 80 BECAUSE THEY OWNED A LARGE PORTION OF SUPERVOTING CLASS C SHARES THE COMPANY DIDN'T SAY WHAT THE EXERCISE PRICE OF THE WARRANTS WILL BE BUT INDICATED IT WOULD BE SET AT A LEVEL THAT UNSECURED CREDITORS WHO RECEIVE COMMON STOCK WILL HAVE RECOVERED 95 OF THE AMOUNT OWED THEM THE REORGANIZATION PLAN CALLS FOR WANG TO SELL OFF SOME SMALL UNITS AND ASSETS AND TO CONCENTRATE ON DEVELOPING SOFTWARE AND WORKING WITH CLIENTS TO INTEGRATE THEIR OFFICE COMPUTERS IN PARTICULAR IT IS TARGETING THE MARKET FOR IMAGING SOFTWARE TO REDUCE PAPERWORK AND SPEED RETRIEVAL OF DOCUMENTS MR TUCCI SAID WANG EXPECTS TO POST REVENUE OF 125 BILLION TO 13 BILLION IN FISCAL 1993 ENDING JUNE 30 ABOUT 75 MILLION LESS THAN WAS PREDICTED LAST FALL WANG DIDN'T FORECAST A PROFIT OR LOSS FOR THIS YEAR BUT SAID IT EXPECTS TO HAVE OPERATING PROFIT OF 73 MILLION IN FISCAL 1994 MOST OF THE STAFF CUTS WILL BE IN SALES AND MANUFACTURING MANUFACTURING SPACE WILL BE CUT FROM 15 MILLON SQUARE FEET TO ABOUT 150000 SQUARE FEET OVER THE NEXT YEAR WITH THE REMAINING SPACE BEING USED TO ASSEMBLE COMPUTERS WITH COMPONENTS BY OTHER COMPANIES AND TO TEST SOFTWARE AND SYSTEMS WANG SAID IT WILL RELY MOSTLY ON TELEMARKETING AND DIRECT MARKETING TO SELL ITS SOFTWARE AND WILL TRY TO FORGE AGREEMENTS TO PRODUCE SOFTWARE AND SYSTEMS FOR MIDSIZE MACHINES MADE BY OTHER FIRMS THE PLAN SEEMS SOUND WANG HAS ALWAYS BUILT VERY GOOD SYSTEMS AND SOFTWARE AND THEY EXPECT TO MOVE STRONGLY INTO COMPUTER IMAGING WHICH IS A FAST GROWING AREA SAYS CASEY STERN AN ANALYST WITH STARR SECURITIES INC BUT THE REAL QUESTION IS EXECUTION IT'S UNCLEAR WHAT THIS COMPANY WHICH HAS BEEN BUSY SELLING OFF ASSETS LAYING OFF WORKERS AND SCRAMBLING TO SURVIVE FOR YEARS CAN REALLY DO WHEN IT COMES TO SELLING PRODUCT WANG'S STOCK PLUMMETED 3/4 TO 1/4 IN COMPOSITE TRADING TRANSACTIONS WERE DONE IN THIRD MARKETS BECAUSE THE AMERICAN STOCK EXCHANGE HALTED TRADING 9303170074 930317 TECHNOLOGY WHEN A SMOKER QUITS MAY DETERMINE CHANCES OF DYING FROM LUNG CANCER BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A STUDY OF 900000 AMERICANS CONFIRMED THAT THE 40 TO 50 OF ADULTS WHO HAVE QUIT SMOKING SHARPLY CUT THEIR RISK OF DYING OF LUNG CANCER BUT THE STUDY FOUND THE LUNGCANCER RISK OF EXSMOKERS NEVER DROPS BACK TO THAT OF THOSE WHO NEVER SMOKED AND FOR THOSE WHO WAIT UNTIL AFTER THEY ARE 50 YEARS OLD TO QUIT SMOKING THE CHANCES OF DYING OF LUNG CANCER LEVELS OFF ONLY UNTIL 75 YEARS OF AGE WHEN IT SUDDENLY BEGINS CLIMBING AGAIN THE NEW STUDY PUBLISHED IN THIS WEEK'S JOURNAL OF THE NATIONAL CANCER INSTITUTE TAKES A MEASURE OF THE SOCALLED ABSOLUTE RISK OF LUNG CANCER IN PEOPLE WHO HAVE QUIT SMOKING UNTIL NOW MOST SMOKINGCANCER STUDIES HAVE MEASURED RELATIVE RISK SUCH AS THE RISK OF LUNGCANCER DEATH OCCURRING IN SMOKERS RELATIVE TO NONSMOKERS OR CONVERSELY IN NONSMOKERS RELATIVE TO SMOKERS SUCH STUDIES SHOW FOR EXAMPLE THAT A HEAVY CIGARETTE SMOKER IS 10 TIMES AS LIKELY TO DIE OF LUNG CANCER AS A NONSMOKER BUT IT DOESN'T STATE WHAT THE SMOKER'S ABSOLUTE ODDS ARE OF DYING OF LUNG CANCER THE NEW STUDY IS AN ANALYSIS BY UNIVERSITY OF MICHIGAN PUBLICHEALTH SCIENTISTS OF DATA GATHERED BY THE AMERICAN CANCER SOCIETY'S HUGE CANCER PREVENTION STUDY II IN 1982 THE SOCIETY'S VOLUNTEERS OBTAINED HEALTH AND LIFESTYLE DATA ON 12 MILLION AMERICANS THE MICHIGAN RESEARCHERS ANALYZED WHAT HAPPENED TO 900000 OF THESE PEOPLE IN THE SUCCEEDING SIX YEARS THROUGH 1988 ABOUT HALF OF THESE ADULTS HAD NEVER SMOKED TOBACCO ANOTHER QUARTER HAD QUIT SMOKING AND THE REMAINING FOURTH CONTINUED TO SMOKE ACCORDING TO THE REPORT BY MICHAEL T HALPERN BRENDA W GILLESPIE AND KENNETH E WARNER OF THE MICHIGAN SCHOOL OF PUBLIC HEALTH WE BELIEVE THIS IS THE FIRST TIME ABSOLUTE RISK OF LUNG CANCER IN SMOKERS HAS BEEN LOOKED INTO DR HALPERN SAID EXPLAINING THAT THIS IS THE FIRST TIME RESEARCHERS HAD DATA ON A LARGE ENOUGH POPULATION TO MEASURE ABSOLUTE RISK THE ANALYSIS SHOWED THAT AMONG EACH 100000 PERSONS IN THE POPULATION FEWER THAN 50 OF THOSE WHO NEVER SMOKED DIED OF LUNG CANCER BY AGE 75 AMONG THOSE WHO CONTINUED TO SMOKE THE DEATH RATE FROM LUNG CANCER BY AGE 75 WAS ABOUT 1250 PER 100000 MEN AND 550 PER 100000 WOMEN THE RESEARCHERS THEN CALCULATED WHAT HAPPENS STATISTICALLY TO THE TYPICAL EXSMOKER ONE WHO STARTED SMOKING AROUND AGE 17 OR 18 YEARS AND SMOKED SLIGHTLY MORE THAN ONE PACK OF CIGARETTES A DAY AMONG THE MEN WHO QUIT SMOKING WHEN THEY WERE IN THEIR 30S THE DEATH RATE FROM LUNG CANCER BY AGE 75 WAS ABOUT 100 PER 100000 PERSONS IN THE POPULATION OR ONLY 7 THAT OF MEN WHO CONTINUED TO SMOKE AMONG WOMEN WHO QUIT IN THEIR 30S THE LUNGCANCER DEATH RATE BY AGE 75 WAS ABOUT 50 PER 100000 OR ABOUT 10 THAT OF SMOKERS IF THE SMOKER WAITED UNTIL HIS OR HER EARLY 60S TO QUIT SMOKING THE CHANCES OF DYING OF LUNG CANCER BY AGE 75 WERE ABOUT HALF THOSE OF SMOKERS SPECIFICALLY OF EVERY 100000 PERSONS IN THE POPULATION ABOUT 550 MEN AND 250 WOMEN WHO WAITED UNTIL THEIR EARLY 60S TO QUIT SMOKING DIED OF LUNG CANCER BY AGE 75 THE MICHIGAN ANALYSIS FOUND THAT WHEN PEOPLE QUIT SMOKING THEIR RISK OF LUNG CANCER STAYS WELL BELOW THAT OF PEOPLE WHO CONTINUE TO SMOKE BUT THEY NOTED EVEN THOSE WHO QUIT IN THEIR 30S HAVE A RISK APPROXIMATELY TWICE THAT OF THOSE WHO HAVE NEVER SMOKED A DIFFERENCE THAT DOES NOT DECREASE WITH AGE THE QUITTERS' RISK PLATEAUS FOR A FEW YEARS AFTER THEY STOP SMOKING AFTER THE PLATEAU ABSOLUTE RISK OF LUNG CANCER INCREASES FOR FORMER SMOKERS BUT AT A RATE LESS THAN THAT EXPERIENCED BY CURRENT SMOKERS THE RESEARCHERS NOTED AN UNEXPECTED FINDING WAS WHAT HAPPENS TO PEOPLE WHO WAIT UNTIL AFTER AGE 50 TO QUIT SMOKING THEIR RISK OF LUNG CANCER LEVELS OFF AND THEN SUDDENLY BEGINS TO RISE AROUND AGE 75 FOR THESE LATE QUITTERS THE LUNGCANCER DEATH RATE BY AGE 80 WAS ABOUT 900 PER 100000 PERSONS FOR MEN AND ABOUT 400 FOR WOMEN SHARPLY HIGHER THAN AT AGE 75 BUT STILL ONLY ABOUT HALF THE RATE FOR PEOPLE WHO CONTINUE TO SMOKE 9303170073 930317 BUSINESS BRIEF LAC MINERALS LTD PURCHASE OF CHEVRON MINE HINGES ON IVERNIA'S DECISION LAC MINERALS LTD SAID AN ARBITRATOR'S RULING WILL ALLOW IVERNIA PLC OF BRITAIN TO ACQUIRE A 525 INTEREST IN THE LISHEEN ZINCLEAD DEPOSIT NEAR KILKENNY IRELAND LAC HAD AGREED TO ACQUIRE THE LISHEEN STAKE ALONG WITH OTHER MINING ASSETS FROM CHEVRON MINERALS CORP OF IRELAND A UNIT OF CHEVRON CORP OF SAN FRANCISCO IN A TRANSACTION VALUED AT ABOUT 70 MILLION BUT A DISPUTE BETWEEN CHEVRON AND IVERNIA OVER AN AGREEMENT GIVING IVERNIA A RIGHT OF FIRST REFUSAL TO ACQUIRE THE LISHEEN STAKE RESULTED IN AN ARBITRATION HEARING THE ARBITRATOR RULED IN FAVOR OF IVERNIA GIVING IT THE OPPORTUNITY TO INCREASE ITS INTEREST IN THE DEPOSIT TO 100 FROM 475 LAC OFFICIALS SAID IF IVERNIA OPTS TO ACQUIRE THE LISHEEN INTEREST LAC OFFICIALS SAID THEY WILL NOT PROCEED WITH THE PURCHASE OF ANY OF THE OTHER CHEVRON ASSETS LAC A TORONTOBASED MINING CONCERN EARLIER DESCRIBED LISHEEN AS ONE OF THE WORLD'S BEST UNDEVELOPED ZINC DEPOSITS AND THE ONLY SIGNIFICANT ASSET IN THE 70 MILLION PACKAGE 9303170072 930317 ADIEU FRENCH SOCIALISM BY GUY SORMAN PARIS IN A FUTURE ENCYCLOPEDIA WE WILL BE ABLE TO READ UNDER SOCIALISM UTOPIA BORN IN PARIS IN 1840 UNDER THE NAME OF SCIENTIFIC SOCIALISM INVENTED BY PIERRE JOSEPH PROUDHON DIED IN PARIS MARCH 21 1993 FOLLOWING THE FIRST ROUND OF LEGISLATIVE ELECTIONS WITH THE UNWILLING HELP OF FRANCOIS MITTERRAND IT IS ON THIS DATE THAT THE FRENCH ELECTORATE WILL CLEAR THE EUROPEAN SCENE OF THE LAST AUTHENTIC SOCIALIST PARTY IN THE DEVELOPED WORLD EVEN THE MOST OPTIMISTIC ESTIMATES GIVE THE SOCIALISTS 20 OF THE VOTE WE ARE NOT TALKING ABOUT A SIMPLE ELECTORAL REVERSAL BUT RATHER THE END OF AN IDEOLOGICAL ERA FOR A MOVEMENT THAT UNLIKE ITS GERMAN SCANDINAVIAN AND SPANISH COUNTERPARTS CONSIDERED SOCIAL DEMOCRACY AND ALL COMPROMISE WITH MARKET ECONOMICS TO BE A BETRAYAL IT IS NOT ONLY THE SOCIALISTS' ROLE IN FRANCE'S ECONOMIC STAGNATION THAT IS AT ISSUE FRANCE'S SOCIALISTS HAVE SHOWN THAT THEIR PRETENSIONS TO MORE ETHICAL GOVERNMENT ARE COMPLETELY UNFOUNDED MOST NOTABLY SEVERAL SOCIALIST MINISTERS ARE SUSPECTED OF HAVING AUTHORIZED THE CIRCULATION OF HIVCONTAMINATED BLOOD THEREBY KILLING THOUSANDS OF HEMOPHILIACS SOCIALIST FOREIGN POLICY HAS ALSO NOT LIVED UP TO THE PARTY'S MORAL PRETENSIONS PROPPING UP DESPOTIC REGIMES IN AFRICA TRADITIONALLY ALLIED WITH FRANCE TRYING TO PREVENT GERMAN UNIFICATION TARDY RECOGNITION OF CROATIAN AND SLOVENIAN INDEPENDENCE AND THE TACIT ACCEPTANCE OF THE COMMUNIST PUTSCH IN AUGUST 1991 YET THE PAST 12 YEARS OF SOCIALIST POWER INTERRUPTED BY A TWOYEAR CONSERVATIVE INTERLUDE IN 198688 HAVE NOT BEEN BAD ONES ECONOMICALLY FOR FRANCE HOWEVER UNCOMPROMISING THEIR IDEOLOGICAL RHETORIC MAY SOMETIMES BE THE SOCIALISTS HAVE LEARNED FROM THE FAILURE OF THEIR INFLATIONARY NATIONALIZATION POLICY OF 198183 THEY HAVE SINCE CHAMPIONED MONETARY STABILITY MARKET ECONOMICS FREE EXCHANGE RATES AND FLEXIBLE SALARIES IN FACT THE PRINCIPAL AND ENTIRELY UNEXPECTED CONSEQUENCE OF SOCIALIST RULE HAS BEEN TO RECONCILE THE FRENCH WITH BIG BUSINESS IN THIS WAY THE RIGHT WAS DEPRIVED OF ITS MAIN ARGUMENT THE DEFENSE OF MARKET ECONOMIES AGAINST SOCIALISM ALONG ITS COURSE OF SELFDESTRUCTION THE SOCIALIST LEFT HAS INADVERTENTLY SUCCEEDED IN DISARMING THE CONSERVATIVE PARTIES TWO CENTURIES AFTER THE FRENCH REVOLUTION INVENTED THE VERY NOTIONS OF LEFT AND RIGHT FRANCE NO LONGER HAS CLEARLY DEFINED IDEOLOGIES ON EITHER SIDE SINCE BOTH HAVE HAD TO BE REINVENTED YET IT IS HARD TO IMAGINE HOW FRANCE COULD COMPLETELY DO AWAY WITH POLITICAL IDEOLOGY AND UTOPIANISM AND BECOME A KIND OF DISPASSIONATE SWITZERLAND THE PROOF OF THIS PERMANENT NEED FOR UTOPIA IS TO BE FOUND IN THE ELECTORATE'S ATTRACTION BY DEFAULT TO BOTH NEW AND LONGESTABLISHED MARGINAL PARTIES SUCH AS THE ECOLOGISTS THE XENOPHOBIC NATIONAL FRONT AND THE UNSINKABLE COMMUNISTS AFTER THE TWOTIERED ELECTIONS OF MARCH 21 AND 28 WE WILL SEE TWO NEW IDEOLOGIES TAKE SHAPE THAT WILL DIVIDE THE FRENCH INTO MORE OR LESS EQUAL PARTS TO THE LEFT THE ORIENTATION WILL BE CLEAR THE SOCIALISM OF MARXIST INSPIRATION WILL GIVE WAY TO A HUMANITARIANISM HALFWAY BETWEEN LIBERATION THEOLOGY AND ANTIBOURGEOIS CULTURAL SUBVERSION A LA GRAMSCI THE DISTINCTIVE MARK OF THIS NEW LEFTISM WILL BE COMPASSION IN THE STYLE OF MEDECINS SANS FRONTIERES DOCTORS WITHOUT FRONTIERS THIS NEW CARING SPIRIT WILL REVIVE THE ECOLOGIST AGENDA AND ENCOURAGE A WARINESS OF TECHNOLOGICAL PROGRESS AND TRIUMPHANT CAPITALISM IT WILL ALSO REMAIN CULTURALLY ANTIBOURGEOIS THESE VIRTUES WILL BE ALL THE MORE EASY TO PRACTICE SINCE THE NEW LEFT WILL BE AN OPPOSITION PARTY DEFINING A NEW RIGHTWING IDEOLOGY WILL BE MORE DIFFICULT SINCE THE RIGHT WILL BE IN POWER IT WILL BE CONFRONTED WITH SUCH PROBLEMS AS UNEMPLOYMENT RECESSION THE BANKRUPT SOCIAL SECURITY SYSTEM THE MEDIOCRITY OF THE UNIVERSITIES UNCONTROLLED IMMIGRATION AGRICULTURAL SUBSIDIES YUGOSLAVIA AND THE CONSTRUCTION OF THE EUROPEAN COMMUNITY THE ONLY COHERENT RESPONSE TO ALL THESE CHALLENGES SHOULD BE CLASSICAL LIBERALISM A LONG FRENCH INTELLECTUAL TRADITION THAT INCLUDES THE WRITINGS OF TOCQUEVILLE JEANBAPTISTE SAY BERTRAND DE JOUVENEL AND RAYMOND ARON AMONG MANY OTHERS YET CURIOUSLY THE LEADERS OF THE FRENCH RIGHT MISTRUST THIS TRADITION BECAUSE THEY FIND IT TOO INTRANSIGENT AND BECAUSE IT OFFERS FEW ELECTORAL REWARDS AT LEAST THAT'S THEIR ARGUMENT THE TRUTH HOWEVER LIES ELSEWHERE IN THE WAY THAT POLITICAL CLASSES ARE RECRUITED IN FRANCE THE LEFT IS THE PARTY OF LYCEE PROFESSORS WHILE THE RIGHT IS THE PARTY OF CIVIL SERVANTS AND BIG STATERUN ENTERPRISES CONSEQUENTLY NOTHING IN THE EXPERIENCE OF RIGHTWING LEADERS ALLOWS THEM A RAPPROCHEMENT WITH THE WORLD OF CONSERVATIVE INTELLECTUALS OR SMALL BUSINESSMEN ON THE CONTRARY ALL THEIR INSTINCTS LEAD THEM TO THE TRADITION OF STATE CONTROL WE CAN BET THAT AFTER THE ELECTIONS THE RIGHT WILL GOVERN THE STATE AND THE LEFT WILL GOVERN MINDS IT SHOULD BE REMEMBERED THAT BECAUSE OF THE PECULIARITIES OF THE FRENCH CONSTITUTION FRANCOIS MITTERRAND THE MAN WHO INADVERTENTLY KILLED SOCIALISM WILL REMAIN PRESIDENT OF THE REPUBLIC HE WILL LOOK WITH IRONY UPON THE SPECTACLE OF A RIGHT THAT ONE OF HIS PREDECESSORS GUY MOLLET IN 1956 CALLED THE STUPIDEST RIGHT IN THE WORLD LET'S HOPE THAT THE NEXT PRIME MINISTER WHO SHOULD BY ALL RIGHTS BE THE CONSERVATIVE EDOUARD BALLADUR PROVES THIS DESIGNATION WRONG MR SORMAN IS AN ECONOMIST AND WRITER IN PARIS 9303170071 930317 REVIEW & OUTLOOK EDITORIAL TED KENNEDY KILLED THE POST IN 1988 SENATOR TED KENNEDY SET ABOUT TO DESTROY TWO NEWSPAPERS WHOSE POLITICAL VIEWS AND WHOSE OWNER OFFENDED HIM THE PAPERS IN QUESTION WERE THE COMBATIVE AND CONSERVATIVE NEW YORK POST AND THE BOSTON HERALD BOTH WERE OWNED BY RUPERT MURDOCH THAT MR MURDOCH OWNED TELEVISION STATIONS IN THE SAME CITIES AS THE POST AND HERALD PROVIDED THE SENATOR WITH HIS OPPORTUNITY AT LONG LAST TO GET AT HIS ENEMY BY INVOKING AN OBSOLETE FCC RULE BARRING CROSS OWNERSHIP OF A BROADCASTING STATION AND NEWSPAPER IN THE SAME MARKET MR KENNEDY BORE A LARGE BURDEN OF RESENTMENT AGAINST THE HERALD IN PARTICULAR A HOME STATE NEWSPAPER THAT HAD WAGED VIGOROUS JOURNALISTIC INVESTIGATIONS INTO THE SENATOR'S ADVENTURES BOTH POLITICAL AND PERSONAL THE SENATOR SEEMS TO HAVE SUCCEEDED IN THE END IN KILLING JUST THE POST WHOSE DEATH RATTLE HAS SOUNDED WITH INCREASING PERSISTENCE SINCE ITS FORCED SALE MR KENNEDY EFFECTED THIS FEAT THROUGH THE GOOD OFFICES OF HIS COLLEAGUE SENATOR ERNEST HOLLINGS WHO SNEAKED A PROVISION THROUGH CONGRESS THAT BARRED THE EXTENSION TO MR MURDOCH OF ANY MORE WAIVERS PERMITTING HIM TO KEEP A NEWSPAPER AND TV STATION IN BOTH NEW YORK AND BOSTON IN BOSTON HE SOLD THE TV STATION IN NEW YORK HE SOLD THE POST TODAY THE POST IS IN A STATE APPROXIMATING A KAFKAESQUE NIGHTMARE WITH TOUCHES OF THE MAD HATTER'S TEA PARTY THE MAD SCENARIO TOOK ITS ULTIMATE TURN LAST WEEK WHEN A BANKRUPTCY JUDGE DECREED THAT OF THE TWO TITANS STRUGGLING FOR CONTROL OF THE PAPER THE LESSER OF THE TWO EVILS WAS PARKING LOT TYCOON ABE HIRSCHFELD ANOTHER ASPIRING POST PUBLISHER STEVEN HOFFENBERG WHO FACES FRAUD CHARGES BY THE SEC ORIGINALLY BROUGHT MR HIRSCHFELD ONTO THE SCENE AS A PARTNER MR HIRSCHFELD THEN DECIDED HE WANTED TO OWN THE PAPER BY HIMSELF AND AFTER COURTROOM SESSIONS WHEREIN CRIES OF HITLER AND LUNATIC FILLED THE AIR AS THE ASPIRING PUBLISHERS ACCUSED ONE ANOTHER MR HIRSCHFELD PREVAILED THE LESSER OF TWO EVILS PROMPTLY ISSUED ORDERS FOR THE FIRING OF 72 STAFF MEMBERS INCLUDING NOT LEAST THE RECENTLY APPOINTED EDITORINCHIEF PETE HAMILL THE NEW PUBLISHER THEN DENIED THAT HE HAD FIRED ANYBODY ESPECIALLY PETE HAMILL BETTER STILL THE LESSER OF TWO EVILS INSTALLED AS HIS OWN EDITORINCHIEF WILBERT TATUM PUBLISHER OF THE AMSTERDAM NEWS A NEWSPAPER DIRECTED AT BLACK READERS AND BEST KNOWN IN NEW YORK CITY FOR ITS UNSTINTING SUPPORT OF THE TAWANA BRAWLEY RAPE HOAX AND ITS DEFENSE OF THE RAPISTS OF THE CENTRAL PARK JOGGER THOSE FORTUNATE ENOUGH TO HAVE GOT THEIR HANDS ON A COPY OF YESTERDAY'S NEW YORK POST FOUND A FRONT PAGE SHOWING FOUNDER ALEXANDER HAMILTON WITH A TEAR IN HIS EYE THERE WAS NO CRYING THOUGH IN THE PAGES THAT FOLLOWED A SPIRITED AND HILARIOUS ASSAULT ON THE NEW PUBLISHER AND HIS EDITORINCHIEF THAT IS A COLLECTOR'S EDITION IF EVER THERE WAS ONE WHO IS THIS NUT SCREAMED THE PAGETHREE HEADLINE IN CLASSIC NEW YORK POST STYLE OVER A PICTURE OF ABE HIRSCHFELD IN ONE OF HIS MORE RENOWNED VENTURES INTO JOURNALISTIC CIRCLES IT IS A PHOTO THAT IS SHOWING MR HIRSCHFELD SPITTING IN THE FACE OF MIAMI HERALD REPORTER BONNIE WESTON WHOSE REPORTAGE ON ONE OF HIS MANY POLITICAL CAMPAIGNS DISPLEASED HIM HATEEM TATUM READY FOR SLIME TIME ANOTHER SAYS OVER A STORY ABOUT THE NEWLY APPOINTED EDITORINCHIEF WHOSE AMSTERDAM NEWS PETE HAMILL DESCRIBES AS HAVING PUBLISHED MORE ANTISEMITIC DRIVEL THAN ANYTHING SINCE DER STUERMER WHICH WAS A NAZI NEWSPAPER POST COLUMNIST JACK NEWFIELD DESCRIBED THE HIRSCHFELDTATUM ALLIANCE AS THE MARX BROTHERS VERSION OF THE STALINHITLER PACT PUBLISHER HIRSCHFELD OF COURSE HARDLY REQUIRED THIS EDITION OF THE POST TO DRAW ATTENTION TO HIMSELF EACH MORNING THIS WEEK NEW YORKERS COULD WAKE UP IN THE MORNING AND FIND ON THEIR TV SETS ABE HIRSCHFELD EXPLAINING HIS PHILOSOPHY OF PUBLISHING HE WANTED HE EXPLAINED THAT THE POST SHOULD BE LIKE THE OPRAH WINFREY SHOW AS REGARDS HIS LABOR AND MANAGEMENT PROBLEMS AT THE POST MR HIRSCHFELD EXPLAINED THAT IF THEY THE STAFF HAD ENOUGH MONEY TO SHINE MY SHOES THEY WOULD OWN THE PAPER BUT THEY DON'T SO I HAVE THE PAPER YESTERDAY MORNING MR HIRSCHFELD DESCRIBED HIMSELF AS HAVING THE CALIBER OF AN EINSTEIN THE PROSPECTS FOR THE POST'S SURVIVAL UNDER THE APPOINTED LEADERSHIP OF THE LESSER OF TWO EVILS AND HIS APPOINTED EDITORINCHIEF IS NEGLIGIBLE AS THE PAPER'S ADVERTISERS ARE ALREADY MAKING CLEAR UNLESS SOME FORCE FOR SANITY INTERCEDES THE NEW YORK POST FOUNDED IN 1801 AND THE LONGEST RUNNING PUBLISHED PAPER IN AMERICA SEEMS DOOMED WHEN SENATOR KENNEDY'S MACHINATIONS AGAINST RUPERT MURDOCH FORCED THE SALE OF THE POST THE SENATOR EXPLAINED THAT HE HAD ACTED IN THE BEST INTEREST OF THE FIRST AMENDMENT WHICH WOULD BE TRUE ONLY IF THE FIRST AMENDMENT WERE CONCERNED WITH THE RUIN OF NEWSPAPERS 9303170070 930317 REVIEW & OUTLOOK EDITORIAL NORTH KOREA'S BOMB THREAT NO SERIOUS PERSON SHOULD DOUBT THAT NORTH KOREA HAS BEEN VIOLATING THE NUCLEAR NONPROLIFERATION TREATY NPT THAT IT SO MELODRAMATICALLY WITHDREW FROM THIS WEEK COLD WAR OR NO COLD WAR THE BOMB IN THE HANDS OF UNFRIENDLY NATIONS IS OR SOON WILL BE A REALITY IT IS NOT NEARLY SO CLEAR THAT WESTERN AUTHORITIES ARE CAPABLE OF THINKING SERIOUSLY ABOUT THE IMPLICATIONS OF THIS REALITY CONGRESSMAN LEE HAMILTON IS ALREADY PROMISING THE NORTH KOREANS BETTER RELATIONS WITH THE US IF THEY'LL REJOIN THE NONPROLIFERATION TREATY BUT WHAT'S THE POINT AS SEVERAL NATIONS HAVE NOW DEMONSTRATED REGIMES WITH SUFFICIENT LACK OF CONSCIENCE CAN SIGN THE NPT AND PROCEED ANYWAY WITH A NUCLEAR PROGRAM BOBBING AND WEAVING BEHIND THE INTERNATIONAL ATOMIC ENERGY AGENCY'S SKIRTS ALMOST INDEFINITELY ONE OF THE GREAT REVELATIONS OF OPERATION DESERT STORM WAS HOW LITTLE THE WEST OR ITS INSPECTION ARMS KNEW ABOUT SADDAM'S WELLDEVELOPED NUCLEAR WEAPONS PROGRAM THE FACT IS SOME REGIMES DON'T PLAY BY THE RULES AND THEY NEVER WILL THE IAEA DID EVENTUALLY LOSE PATIENCE WITH NORTH KOREA THOUGH VERY BELATEDLY IT MUSTERED THE COURAGE TO SET A MARCH 25 DEADLINE FOR THE INSPECTION OF TWO SITES ANALYSTS SUSPECT MAY BE PROCESSING NUCLEAR FUELS SO PYONGYANG QUIT CITING THE HASTY FUSS OF THE IAEA THE ONLY DIFFERENCE WITH NORTH KOREA IN THE NPT AND NORTH KOREA OUT OF IT IS THAT BEFORE IT LIED ABOUT ITS NUCLEAR PROGRAM AND NOW IT DOESN'T HAVE TO NORTH KOREA LIKE IRAQ OR CUBA OR LIBYA IS ONE OF THOSE INHERENTLY SECRETIVE COUNTRIES THAT ISN'T OPERATING ACCORDING TO NORMAL BEHAVIORAL PATTERNS AMONG NATIONS PYONGYANG HAS APPARENTLY DECIDED THAT HAVING NUKES IS MORE IMPORTANT THAN HAVING SAY AN ECONOMY BOTH JAPAN AND SOUTH KOREA HAVE OPENED ECONOMIC RELATIONS WITH NORTH KOREA BUT HELD BACK LARGESCALE INVESTMENT UNTIL IT COOPERATED WITH THE IAEA PRESUMABLY THOSE INVESTMENT TAPS WILL NOW BE SHUT OFF NORTH KOREA'S ONLY FRIEND CHINA HAS BEGUN TO INSIST ON HARD CURRENCY INSTEAD OF BARTER FOR TRADE SINCE NORTH KOREA HAS NOTHING TO SELL TO EARN HARD CURRENCY EXCEPT SCUD MISSILES THAT IS MORE PROLIFERATION THE REQUIREMENT HAS BATTERED AN ALREADY SORRY EXCUSE FOR AN ECONOMY THE COUNTRY'S 21 MILLION PEOPLE ARE DOWN TO EATING ABOUT ONE AND A HALF MEALS A DAY RAILWAYS HARDLY EVER RUN FACTORIES OPERATE AT 40 CAPACITY BECAUSE OF POWER SHORTAGES AND TRADE HAS FALLEN OFF PRECIPITOUSLY BUT THIS IS THE COUNTRY THAT THE CLINTON ADMINISTRATION HOPES WILL CHANGE ITS MIND ABOUT PLAYING BY THE RULES OF NONPROLIFERATION NORTH KOREA KNEW THAT BY WITHDRAWING FROM THE NPT IT WOULD BE SPURNING ITS BEST CHANCE FOR ECONOMIC SALVATION BUT IT DID SO ANYWAY THE ONLY POSSIBLE CONCLUSION IS THE OBVIOUS ONE NORTH KOREA WANTS TO HAVE NUKES THE CENTRAL ISSUE IS NOT HOW TO GET PYONGYANG BACK INTO THE MULTILATERAL FOLD BUT HOW TO DEAL WITH A VERY REAL THREAT TWO POINTS WESTERN LEADERS SHOULD NOT GIVE THE IMPRESSION THAT THE NONPROLIFERATION TREATY OFFERS MORE SECURITY THAN IT CAN CARRY FURTHER THE US SHOULD DEVOTE A LOT MORE FOCUSED ENERGY THAN IT IS NOW ON SLOWING THE PROLIFERATION OF TECHNOLOGIES FOR NUCLEAR WEAPONS AND MISSILEDELIVERY SYSTEMS NOT TO DO SO IS FOLLY BECAUSE THE PEOPLE WHO REFUSE TO PLAY BY THE RULES EVENTUALLY ARE GOING TO GET WHAT THEY WANT 9303170069 930317 PENTAGON SELECTS AIRCRAFT TEAMS WASHINGTON TWO TEAMS LED BY UNITS OF LOCKHEED CORP AND MCDONNELL DOUGLAS CORP WERE SELECTED TO SEPARATELY DEVELOP TECHNOLOGY FOR A NEW LIGHTWEIGHT FIGHTER AIRCRAFT THE PENTAGON SAID THE MCDONNELL DOUGLAS TEAM GOT A 277 MILLION CONTRACT TO BUILD A GASCOUPLED LIFT FAN AND ENGINE THE LOCKHEED TEAM GOT A 329 MILLION CONTRACT FOR ITS SHAFTDRIVEN LIFT FAN CONCEPT MCDONNELL DOUGLAS IS BASED IN ST LOUIS AND LOCKHEED IS BASED IN CALABASAS CALIF 9303170068 930317 VOTERS IN FLORIDA AGREE TO CONTINUE LEASE PAYMENTS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL IN A VICTORY FOR THE MUNICIPALFINANCE INDUSTRY RESIDENTS IN BREVARD COUNTY FLA VOTED BY A SLIM MARGIN TO CONTINUE MAKING LEASE PAYMENTS ON 239 MILLION OF CERTIFICATES OF PARTICIPATION USED TO BUILD A GOVERNMENT OPERATIONS CENTER THE VOTE CAPPED A FIERCE LOCAL POLITICAL BATTLE PITTING WALL STREET MUNICIPAL BOND INTERESTS AGAINST A LOCAL GROUP OF CITIZENS WHO OPPOSED CONSTRUCTION OF THE CONTROVERSIAL CENTER VOTERS REJECTED ANOTHER PROPOSAL BY A WIDER MARGIN TO REFINANCE THE SOCALLED COPS BY ISSUING GENERAL OBLIGATION BONDS THIS IS THE FIRST INSTANCE OF A COUNTY WHICH HAS THE ABILITY TO MAKE THE PAYMENTS VOTING ON WHETHER TO END A LEASE OBLIGATION MUNICIPAL FINANCE SPECIALISTS SAY THE VERY IDEA OF A VOTE ENRAGED MANY MUNICIPAL BOND OFFICIALS THE SECURITIES WERE SOLD TO INVESTORS IN 1989 TO BUILD A GOVERNMENT CENTER IN VIERA FLA THE VOTE IS IMPORTANT BECAUSE THESE MUNICIPAL TAXEXEMPT LEASE OBLIGATIONS KNOWN AS COPS HAVE ATTRACTED BILLIONS OF DOLLARS FROM INVESTORS SO A DECISION BY VOTERS NOT TO CONTINUE PAYING INVESTORS THEIR PRINCIPAL AND INTEREST WOULD HAVE SENT RIPPLES THROUGH THE ENTIRE COP BUSINESS IF THAT HAD OCCURRED MUNICIPAL SPECIALISTS FEARED THAT OTHER MUNICIPALITIES STRAPPED BY HARD ECONOMIC TIMES MIGHT FOLLOW BREVARD'S LEAD AND STOP MAKING THEIR PAYMENTS TO COP INVESTORS SOME POLITICAL OBSERVERS SAID THAT SOME LOCAL VOTERS WERE ANGERED BY WHAT THEY CONCEIVED AS A HIGHPRESSURE ATTEMPT BY WALL STREET TO SWAY VOTER SENTIMENT A SPOKESMAN FOR THE MUNICIPAL BOND INVESTORS ASSURANCE CORP ARMONK N Y THE NATION'S LARGEST INSURER OF MUNICIPAL BONDS CONFIRMED THAT IT SPENT 373975 IN DONATIONS TO THREE PROCOPS POLITICAL ACTION GROUPS TO EDUCATE VOTERS MBIA AS THE INSURER OF THE BREVARD COUNTY COPS WOULD HAVE HAD TO PAY INVESTORS THEIR PRINCIPAL AND INTEREST PAYMENTS OTHER BONDINSURANCE COMPANIES CONTRIBUTED 18000 MORE TO THE PACS KAREN ANDREAS CHAIRWOMAN OF BREVARD COUNTY'S BOARD OF COMMISSIONERS SAID THAT WAS THE MOST MONEY EVER SPENT IN A LOCAL ELECTION IN THE COUNTY CERTIFICATES OF PARTICIPATION NOW ACCOUNT FOR ABOUT 65 BILLION OF THE 11 TRILLION OF MUNICIPAL DEBT OUTSTANDING ACCORDING TO THE PUBLIC SECURITIES ASSOCIATION A NEW YORKBASED TRADE GROUP THEY HAVE BECOME POPULAR WITH STATE AND LOCAL GOVERNMENTS BECAUSE THEY OFFER A WAY TO RAISE MONEY WITHOUT GETTING VOTERS TO APPROVE A NEW BOND ISSUE OR A TAX INCREASE COPS HAVE BEEN USED TO FINANCE EVERYTHING FROM COMPUTERS AND POLICE CARS TO GOVERNMENT CENTERS PRISONS AND SCHOOL BUILDINGS 9303170067 930317 CORRECTIONS & AMPLIFICATIONS JACK T KOLZE INDICTED WITH 10 OTHERS IN CONNECTION WITH ALLEGED FRAUD AT DEFUNCT VICTORIA SAVINGS ASSOCIATION IS AN EMPLOYEE OF A RESOLUTION TRUST CORP CONTRACTOR WORKING ON THE RECEIVERSHIP OF SUNBELT SAVINGS IN IRVING TEXAS A DE PARTMENT OF JUSTICE NEWS RELEASE REPORTED IN AN ARTICLE YESTERDAY INCORRECTLY IDENTI FIED MR KOLZE AS AN RTC EMPLOYEE MR KOLZE DECLINED COMMENT YESTERDAY ON THE FRAUD CHARGES AN RTC SPOKESMAN SAID THE AGENCY WILL ASK THE CONTRACTOR JAYNES REITMEIER BOYD & THERRELL OF DALLAS TO RECONSIDER MR KOLZE'S ASSIGNMENT TO RTC WORK 9303170066 930317 WHO'S NEWS ADVACARE INC ADVACARE INC GREENVILLE TEXAS BJ RONE 50 YEARS OLD FORMER PRESIDENT AND CHIEF FINANCIAL OFFICER OF ARCHIVE CORP WAS NAMED EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER AND A DIRECTOR OF THIS MEDICAL REIMBURSEMENT MANAGEMENT SERVICE COMPANY MR RONE SUCCEEDS FRANK TREADAWAY AS CHIEF FINANCIAL OFFICER AND FILLS A VACANCY ON THE BOARD MR TREADAWAY WHO WAS ACTING CHIEF FINANCIAL OFFICER REMAINS A VICE PRESIDENT 9303170065 930317 WHO'S NEWS INTERNATIONAL RECTIFIER CORP INTERNATIONAL RECTIFIER CORP EL SEGUNDO CALIF DONALD S BURNS WAS ELECTED A DIRECTOR INCREASING THE BOARD OF THIS SEMICONDUCTOR MAKER TO SEVEN MEMBERS MR BURNS 67 YEARS OLD IS MANAGING DIRECTOR OF PRESTIGE EQUITIES LTD 9303170064 930317 SUPERMARKETS GENERAL TO AID PATHMARK UNIT WITH STOCK OFFERING WOODBRIDGE NJ SUPERMARKETS GENERAL CORP SAID IT PLANS TO BOLSTER ITS PATHMARK SUPERMARKET AND DRUGSTORE BUSINESS WITH A 160 MILLION INITIAL PUBLIC OFFERING AND TOOK A 6007 MILLION WRITEOFF IN ITS FISCAL FOURTH QUARTER OWNERS OF THE COMPANY WHICH WENT PRIVATE IN 1987 PLAN TO SELL 10 MILLION SHARES TO THE PUBLIC AT 16 A SHARE AND PROPOSE A BROAD RECAPITALIZATION TO PAY OFF DEBT THEY ALSO INTEND TO SPIN OFF TO THEMSELVES THE RICKEL HOMECENTER BUSINESS AS WELL AS WAREHOUSING AND TRANSPORTATION SERVICES FOR THE PATHMARK OPERATIONS SUPERMARKETS GENERAL ALSO SAID IT WILL CHANGE ITS NAME TO PATHMARK STORES INC AS ITS FOCUSES ON GROWING ITS CORE SUPERMARKET AND DRUGSTORE BUSINESS PATHMARK THE NATION'S 10THLARGEST SUPERMARKET CHAIN OPERATES 146 SUPERMARKETS AND 33 DRUGSTORES IN THE NORTHEAST A UNIT OF MERRILL LYNCH & CO OWNS SLIGHTLY MORE THAN HALF OF SUPERMARKETS GENERAL HOLDINGS CORP PARENT OF SUPERMARKETS GENERAL THE HOLDING COMPANY SAID THAT AS A RESULT OF THE WRITEOFF IT EXPECTS TO REPORT PRETAX LOSSES FROM CONTINUING OPERATIONS OF 5891 MILLION FOR THE QUARTER ENDED JAN 30 AND 6154 MILLION FOR THE FISCAL YEAR THE WRITEOFF REPRESENTS THE REMAINING GOODWILL ON ITS BALANCE SHEET THE HOLDING COMPANY SAID IT EXPECTS TO RELEASE AUDITED RESULTS IN ABOUT SIX WEEKS 9303170063 930317 LAW US PANEL POSTPONES DECISION ON ADDING APPEALS COURT JUDGES WASHINGTON FEDERAL JUDICIAL POLICY MAKERS POSTPONED ACTION ON A PLAN TO GREATLY EXPAND THE NINTH US CIRCUIT COURT OF APPEALS THE JUDICIAL CONFERENCE OF THE US TABLED A PROPOSAL TO ADD 10 NEW JUDGES TO THE 28JUDGE NINTH CIRCUIT BASED IN SAN FRANCISCO THE CONFERENCE PLANS TO TAKE UP THE ISSUE AGAIN IN SEPTEMBER AND DIRECTED ITS LONGRANGE PLANNING COMMITTEE TO REPORT AT THAT TIME ON THE NEED FOR ADDITIONAL FEDERAL JUDGES THE CONFERENCE HAS SCHEDULED A NEWS CONFERENCE FOR THIS MORNING TO ELABORATE ON THE DELAY THE NINTH CIRCUIT IS THE LARGEST FEDERAL APPEALS COURT IN TERMS OF GEOGRAPHICAL AREA AND NUMBER OF JUDGES THE PROPOSED EXPANSION HAS BEEN AT THE CENTER OF A SOMETIMES BITTER DEBATE OVER HOW TO COPE WITH A GROWING NUMBER OF CASES ESPECIALLY AT THE APPEALS COURT LEVEL SOME JUDGES INCLUDING CHIEF JUSTICE WILLIAM H REHNQUIST HAVE OPPOSED UNLIMITED EXPANSION OF THE FEDERAL BENCH FOR FEAR THAT IT WILL DILUTE THE QUALITY OF DECISIONS AND CREATE INCONSISTENCIES IN THE LAW OTHERS BELIEVE THE COURTS SHOULD ACTIVELY SUPPORT THE ADDITION OF MORE JUDGES AS A RESPONSE TO THE TREND IN CONGRESS OF MAKING VARIOUS CRIMES FEDERAL OFFENSES I WOULD LIKE TO KNOW WHO IS SUPPOSED TO DO THE WORK IN THE MEANTIME STEPHEN REINHARDT A FEDERAL APPEALS COURT JUDGE IN LOS ANGELES SAID OF THE DELAY IT IS VERY NICE TO SAY THAT THEY SHOULD CONDUCT STUDIES AND WE SHOULD HANDLE CASES WITHOUT ENOUGH JUDGES HE HAS PROPOSED DOUBLING THE NUMBER OF FEDERAL APPEALS COURT JUDGES NATIONWIDE TO DEAL WITH HEAVY DOCKETS A NINTH CIRCUIT EXPANSION WOULD GIVE CONGRESS AND THE CLINTON ADMINISTRATION AN ADDED WINDFALL AS THEY SEEK TO PUT A DEMOCRATIC STAMP ON THE COURTS AFTER 12 YEARS OF REPUBLICAN CONTROL SOME JUDGES SCHOLARS AND LEGISLATORS BELIEVE THAT A RECOMMENDATION TO EXPAND THE COURT WHICH CONGRESS MUST APPROVE WOULD BE AN INVITATION TO DEMOCRATIC LAWMAKERS TO CREATE MORE JUDGESHIPS ELSEWHERE THE PRESIDENT ALREADY IS FACED WITH FILLING SOME 115 VACANCIES THROUGHOUT THE FEDERAL SYSTEM OUT OF A TOTAL 846 AUTHORIZED JUDGESHIPS 9303170062 930317 WE MAKE A BIT MORE OF ST PATRICK'S DAY THAN THE IRISH DO ALSO MORE MONEY FROM BEER PRODUCED IN US BREWERIES AND OTHER FAKE IRISH STUFF BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH AT MULLANEY'S HARP & FIDDLE IRISH PUB A WOMAN NAMED KELLY WEARING GREEN IS ON HER SECOND PINT OF MICHAEL SHEA'S IRISH AMBER IT'S ENOUGH TO MAKE YOUR IRISH EYES SMILE EXCEPT THAT KELLY'S FULL NAME IS KELLY MUZYCZKA AS SHE PUTS IT SHE IS UKRAINIAN THROUGH AND THROUGH THE IRISH BEER SHE IS DRINKING COMES FROM ROCHESTER NY AND THE BAR ITSELF CONVENIENTLY LOCATED ABOUT 3500 MILES WEST OF DUBLIN IS OWNED IN LARGE PART BY A LAWYER WHO HAILS FROM NEW JERSEY OK SO MULLANEY FOREBEARS DID COME FROM THE EMERALD ISLE THE AMERICANIZATION DOESN'T BOTHER MS MUZYCZKA BUT IT DOES ANNOY THE IRISH AS THEY WATCH AMERICAN BREWERS RESTAURANTS MUSICIANS AND NOVELTY COMPANIES CASH IN ON THIS FOREIGN FASCINATION WITH IRELAND AND ITS PATRON SAINT THE IRISH WONDER WHY IRELAND ISN'T GETTING A BIGGER PIECE OF THE GREEN WHILE THE IRISH CHASE RAINBOWS TRYING TO EXPORT PEAT BRICKS AND BLOOD PUDDING CRAFTY AMERICANS FIND POTS OF GOLD PRINTING BUMPER STICKERS THAT SAY I BRAKE FOR LEPRECHAUNS SAYS GERARD MORRISSEY DIRECTOR OF THE IRISH GOVERNMENT'S NORTH AMERICAN TRADE BOARD IT DISAPPOINTS US AND FRUSTRATES US THAT WE HAVEN'T BEEN ABLE TO EXPLOIT THIS THE US WITH 44 MILLION IRISHAMERICANS IS AN IDEAL MARKET FOR IRELAND AND ITS 4 MILLION PEOPLE YET IRELAND EXPORTS ONLY 25 BILLION ANNUALLY TO THE US MOSTLY NONETHNIC ITEMS LIKE ELECTRONICS PHARMACEUTICALS AND DAFFODILS THE US ACCOUNTS FOR A MERE 10 OF TOTAL IRISH EXPORTS THE PROBLEM SAYS HISTORIAN LAWRENCE MCCAFFREY IS THE GREAT BULK OF IRISH AMERICANS ARE BASICALLY IGNORANT OF WHAT IRISH CULTURE REALLY IS ST PATRICK'S DAY ISN'T EVEN THAT BIG A DEAL IN IRELAND OF COURSE THERE ARE PARADES BUT THE IRISH GO TO CHURCH ON ST PATRICK'S DAY THEY AREN'T LIKELY TO BE HAVING CORNED BEEF AND CABBAGE FOR DINNER THEY DON'T DYE THEIR RIVERS GREEN AS CHICAGO AND SAVANNAH HAVE DONE AND SAYS ORLA CAREY OF THE IRISH TOURIST BOARD WE'D NEVER MAKE OUR BEER GREEN THE LUCK O' THE IRISH IS RUNNING THIN WHEN IT COMES TO CRACKING THE US MARKET TAKE PADDY PEAT BRICKS A PRODUCT OF THE BORD NA MONA OR FOR THOSE WHO DON'T SPEAK GAELIC THE IRISH PEAT BOARD THE GROUP HAS BEEN TRYING FOR FIVE YEARS TO EXPORT THE DRIED COMPRESSED PEAT WHICH IS BURNED TO HEAT ONE IN FOUR IRISH HOMES SO FAR AMERICA HAS SAID NO THANKS PEOPLE HAVE ZERO CONCEPT OF THE PRODUCT OR BRAND RECOGNITION SAYS DAVE GLEESON MARKETING MANAGER FOR THE PEAT BOARD IT'S NEVER HE LAMENTS GOING TO HAVE THE IMPACT OF DURAFLAME TO THE DISAPPOINTMENT OF IRELAND'S DAIRYGOLD COOPERATIVE MOST AMERICANS ARE LIKELY TO THINK AN IRISH BREAKFAST CONSISTS OF LUCKY CHARMS RATHER THAN THE RASHERS BACON BANGERS SAUSAGE AND BLOOD PUDDING THAT ARE TRADITIONAL THE DAIRYGOLD COOP WHICH SELLS IN SUPERMARKETS AND BY MAILORDER ENJOYS US SALES OF ONLY 2 MILLION TO 3 MILLION WHICH INCLUDES 300000 8OUNCE TUBES OF BLOOD PUDDING USUALLY MADE FROM PIG'S BLOOD TO SATISFY US REGULATIONS THE DRIED BLOOD COMES FROM CHICAGO IT IS SHIPPED TO IRELAND FOR PROCESSING AND THEN RETURNED TO THE US TO MEET WHAT DEMAND THERE IS I CAN'T SAY IT'S BEEN SENDING BACK MILLIONS OF DOLLARS OF PROFITS SAYS GERRY O'DRISCOLL THE COMPANY'S US MARKETING MANAGER MANY IRISH HE ADDS ARE SHOCKED AT THE LACK OF SUCCESS OUT HERE THE IRISH ROCK GROUP U2 IS WILDLY SUCCESSFUL IN THE US BUT WHY HASN'T CAHAL DUNNE'S FITNESS PROGRAM DONE BETTER HE RECENTLY LAUNCHED HIS AEROBICS VIDEO SET TO UPTEMPO IRISH MUSIC AND ENTITLED JIG DON'T JOG GET FIT THE IRISH WAY THE TAPE FEATURES AN AMERICAN AEROBICS INSTRUCTOR HOPPING IN FRONT OF DUBLIN'S TRINITY COLLEGE AS PASSERSBY GAWK DESPITE A TOLLFREE NUMBER 800854JIGG MR DUNNE HAS SOLD JUST 3500 TAPES SO FAR NOT ENOUGH TO RECOUP HIS 81000 INVESTMENT PERHAPS HE WOULD BE BETTER OFF SELLING MADEINILLINOIS IRISH FLAGS AS DOES BURKE & HOGAN A CHICAGO COMPANY WHICH ALSO OFFERS TSHIRTS EMBLAZONED WITH THE WORDS GOD CREATED WHISKEY TO KEEP THE IRISH FROM RULING THE EARTH AND PATRICK WAS A SAINT I AIN'T OR HE COULD JOIN THE OTHER FAUXIRISH LIKE COLGATEPALMOLIVE CO AND MARKET IRISH SPRING SOAP WHICH HAS NOTHING TO DO WITH IRELAND AND ISN'T SOLD THERE HALLMARK CARDS INC OF KANSAS CITY MO SELLS 150 DIFFERENT CARDS FOR ST PATRICK'S DAY AND A TSHIRT THAT SAYS KISS ME I'M NOT IRISH I JUST KISS GOOD MANY AD HOC IRISH REVELERS IN THE US TODAY WILL REACH FOR KILLIAN'S IRISH RED WHICH BILLS ITSELF THE O'FFICIAL BEER OF ST PATRICK'S DAY WHAT REALLY GETS THE IRISH'S IRISH UP IS THAT KILLIAN'S BREWED BY ADOLPH COORS CO OF GOLDEN COLO NOW OUTSELLS THE TOP IRISH IMPORT GUINNESS STOUT WHICH THESE DAYS IS OWNED BY GUINNESS PLC OF THE UNITED KINGDOM JAMESON'S IRISH WHISKY IS MADE BY IRISH DISTILLERS NOW OWNED BY PERNOD RICARD SA OF FRANCE EVEN BAILEY'S IRISH CREAM ISN'T REALLY IRISH IN THAT THE COMPANY IS OWNED BY GRAND METROPOLITAN PLC YET ANOTHER UK COMPANY GENESEE CORP OF ROCHESTER NY LAST YEAR INTRODUCED MICHAEL SHEA'S IRISH AMBER THE BEER WITH THE IRISH BROGUE NOT TO BE OUTDONE ANHEUSERBUSCH COS OFFERS O'DOUL'S A NONALCOHOLIC BREW IT'S WHAT LEPRECHAUNS DRINK WHEN THEY'RE NOT DRINKING BEER BLARNEY SAY THE IRISH IT SEEMS TO ME IF ANY OTHER MINORITY GROUP WERE DEPICTED AS AN APELIKE FIGURE WITH RED CHEEKS AND A PIPE THERE WOULD BE A LOT OF UPROAR FROM THE AMERICAN CIVIL LIBERTIES UNION SAYS PAUL CAREY AN IRISH IMMIGRANT WHO RUNS A STORE IN PITTSBURGH SELLING IRISH KNITWEAR AND POTTERY BUT NO GIMMICKS WE'RE SUPPOSED TO GRIN AND BEAR IT AND THINK IT'S FUN ADDS THE REV PATRICK SULLIVAN AN IRISHAMERICAN SOCIOLOGY PROFESSOR AT INDIANA'S NOTRE DAME UNIVERSITY HOME OF THE FIGHTING IRISH IT JUST INTENSIFIES THE STEREOTYPES THAT THE IRISH ARE A BUNCH OF DRUNKARDS FATHER SULLIVAN DECRIES THOSE IMPERIOUS FOLKS WHO DEMAND THAT HE WEAR GREEN ON ST PATRICK'S DAY HE OBJECTS TO THE SCHOOL'S LEPRECHAUN MASCOT THERE ARE SOME GENUINE IRISH GOODS SOLD IN THE US AND NOT JUST SWEATERS WATERFORD CRYSTAL HAS MORE THAN 100 MILLION IN ANNUAL US SALES AND THOUGH IT MERGED WITH WEDGWOOD SOME YEARS BACK WATERFORD WEDGWOOD PLC IS STILL HEADQUARTERED IN IRELAND SPECIFICALLY IN WATERFORD ALAS SAYS WATERFORD'S US SALES CHIEF CARL MIELKE PEOPLE THINK WATERFORD IS A TOWN IN CONNECTICUT BUT THE IRISH AFTER CENTURIES OF ECONOMIC HARDSHIP AND EMIGRATION HAVE LEARNED TO TAKE WHAT THEY CAN GET WHEN IRISH MUSICIAN BRIAN CORR FIRST CAME TO THE STATES PEOPLE DEMANDED THAT HE PLAY WHO PUT THE OVERALLS IN MRS MURPHY'S CHOWDER AND WHEN IRISH EYES ARE SMILING BOTH AS FOREIGN TO IRELAND AS MATZO BALL SOUP WE WERE ACCUSED OF NOT BEING IRISH BECAUSE WE DIDN'T KNOW THESE SONGS SAYS MR CORR WHO HAS SINCE LEARNED THEM HE WAS ALSO SURPRISED TO FIND THAT MOST OF THE IRISH SINGERS IN THE US WERE AMERICANS FAKING BROGUES MR CORR WHO HAS A REAL BROGUE DOESN'T BEGRUDGE THE AMERICANS THEIR FUN BUT HE FINDS IT ALL A BIT CONTRIVED IT'S LIKE ME TRYING TO SING BLUEGRASS HE SAYS 9303170061 930317 INTERNATIONAL JAPAN'S TRADE SURPLUS GREW IN FEBRUARY BUT RISE WAS SMALLEST IN NEARLY 2 YEARS BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S MERCHANDISE TRADE SURPLUS GREW AGAIN IN FEBRUARY BUT THE 37 RISE FROM THE YEAREARLIER MONTH WAS THE SMALLEST IN NEARLY TWO YEARS ANALYSTS SAID THE FIGURES INDICATE THAT THE GROWTH OF JAPAN'S RECORD SURPLUS IS FINALLY SLOWING BUT THEY CAUTIONED THERE IS ALMOST NO PROSPECT OF THE SURPLUS SHRINKING IN THE NEAR FUTURE AS LONG AS JAPAN'S LAGGARD ECONOMY DAMPS DEMAND FOR IMPORTS AND THE RESURGENT US ECONOMY BOOSTS DEMAND FOR JAPANESE EXPORTS THE LATEST NUMBERS WHICH SHOWED A 19 JUMP FROM LAST YEAR IN JAPAN'S SURPLUS WITH THE US DID NOTHING TO EASE WORRIES ABOUT NEW FRICTION WITH WASHINGTON THE CLINTON ADMINISTRATION IS REVIEWING BILATERAL ECONOMIC RELATIONS AND AN EARLY TEST OF WHITE HOUSE NERVE COULD COME THIS WEEK WHEN A REPORT IS EXPECTED TO SHOW THAT US COMPANIES' SHARE OF THE JAPANESE SEMICONDUCTOR MARKET DIDN'T MEET GOALS SET IN USJAPAN NEGOTIATIONS PARTLY TO APPEASE THE US AND OTHER NATIONS JAPAN'S LEADERS ARE DRAFTING A SPECIAL BUDGET PACKAGE TO STIMULATE THE DOMESTIC ECONOMY AND THEY HOPE CUT THE TRADE SURPLUS JAPANESE POLITICIANS PLAN TO MAKE THE PROPOSAL PUBLIC BEFORE PRIME MINISTER KIICHI MIYAZAWA MEETS WITH PRESIDENT CLINTON IN WASHINGTON NEXT MONTH RULING LIBERAL DEMOCRATIC PARTY OFFICIALS SUGGESTED THE PACKAGE WOULD BE EVEN LARGER THAN THE 90 BILLION STIMULUS PACKAGE PASSED LAST YEAR JAPAN'S OVERALL TRADE TOTALED 1018 BILLION IN FEBRUARY STILL THE 37 GROWTH WAS THE SMALLEST PERCENTAGE INCREASE SINCE JUNE 1991 AND WAS KEPT LOW BY A 05 DROP IN EXPORTS THE FIRST TIME IN 33 MONTHS THAT JAPAN'S EXPORTS FELL THE MAIN REASON WAS A 144 FALL IN EXPORTS TO EUROPE THE RESULT OF RECESSION THERE AS WELL AS SLOW DEMAND IN GERMANY JAPAN'S WORLDWIDE IMPORTS MEANWHILE FELL 28 IN FEBRUARY FROM A YEAR EARLIER THE MERCHANDISE TRADE SURPLUS WITH THE US ROSE IN FEBRUARY TO 437 BILLION EXPORTS TO THE US ROSE 62 FROM A YEAR AGO WHILE IMPORTS FROM THE US FELL 5 ANALYSTS SAID THE OVERALL DECLINE IN EXPORTS IS TEMPORARY AND THAT JAPAN'S SURPLUS WILL CONTINUE TO SWELL THOUGH NOT AT THE TORRID 37 PACE FOR ALL OF 1992 YOU CAN'T SAY THAT THERE HAS BEEN A CHANGE IN THE BASIC TREND SAID KUSUO AOKI AN ANALYST AT THE YAMAICHI RESEARCH INSTITUTE ALREADY SOME JAPANESE FACTORIES ARE INCREASING PRODUCTION TO MEET RISING US DEMAND MOVES LIKELY TO MAGNIFY THE SURPLUS TOSHIBA CORP FOR EXAMPLE WILL EXPAND PRODUCTION OF MEMORY SEMICONDUCTORS BY AS MUCH AS 27 BECAUSE THERE HAS BEEN A SHARP RISE IN INQUIRIES ABOUT USING THE CHIPS FOR PERSONAL COMPUTERS IN THE US MARKET A SPOKESMAN SAID 9303170060 930317 MARKETING & MEDIA ADVERTISING ADVERTISERS GLORY IN THE TUMULT AS PAPER GOES FROM PILLAR TO POST BY KEVIN GOLDMAN ON FIRST GLANCE YESTERDAY'S EDITION OF THE NEW YORK POST WAS AN ADVERTISER'S WORST NIGHTMARE THE ALLBUTMORIBUND TABLOID WAGED WAR ON ITSELF TRASHING ITS NEW COURTAPPOINTED OWNER ABRAHAM HIRSCHFELD WITH VITRIOL AND HILARITY IN MORE THAN 15 STORIES SPANNING 22 PAGES MR HIRSCHFELD A 73YEAROLD REAL ESTATE DEVELOPER AND SOMETIME POLITICAL CANDIDATE WAS EXCORIATED IN THE PAPER'S NEWS PAGES IN AN EXTRAORDINARY DISPLAY OF CONTEMPT FROM HIS OWN EMPLOYEES WHO IS THIS NUT THE LEAD HEADLINE DEMANDED HE WAS DUBBED AN ANGRY SLOB WHO DOESN'T KNOW SPIT ABOUT JOURNALISM ONE OF MANY REFERENCES THE POST MADE YESTERDAY TO A PAST INCIDENT WHEN HE WAS CAUGHT ON CAMERA SPITTING AT A MIAMI HERALD REPORTER THE TABLOID SIMILARLY SAVAGED HIS CONTROVERSIAL COPUBLISHER AS A DISGRACE TO JOURNALISM AND A FRIEND TO RAPISTS DEFENDER OF HOAXERS AND A CHAMPION OF RACIST CRACKPOTS BUT THE BIGGEST SURPRISE IN THE BRAWLING NEW YORK POST YESTERDAY WAS THIS ADVERTISERS LOVED IT IT'S GREAT TO HAVE AN ADVERTISEMENT IN THE ENVIRONMENT WHERE FREEDOM OF THE PRESS IS CELEBRATED SO COLORFULLY SAYS PAGE THOMPSON EXECUTIVE VICE PRESIDENT AND MEDIA DIRECTOR OF OMNICOM GROUP'S DDB NEEDHAM WHOSE CLIENT AMTRAK HAD A FULLPAGE IN YESTERDAY'S EDITION THIS IS A COLLECTOR'S ITEM INDEED ACCORDING TO MADISON AVENUE EXECUTIVES AND POST OFFICIALS YESTERDAY'S VERBAL FREEFORALL HAD BOOSTED CIRCULATION TO 512000 COPIES AND STILL CLIMBING BY LATE YESTERDAY WELL ABOVE AVERAGE DAILY CIRCULATION OF 438000 THIS ISSUE DOESN'T EXPIRE AT THE END OF THE DAY DECLARES PETE HAMILL THE POST EDITORINCHIEF WHO WAS FIRED BY MR HIRSCHFELD LATE LAST WEEK BUT RETURNED TO THE PAPER'S OFFICES YESTERDAY AFTER SEEING HE WAS STILL LISTED AS EDITORINCHIEF ON THE MASTHEAD THIS EDITION ISN'T EXHAUSTED ON THE F' TRAIN IT ENDS UP ON PEOPLE'S COFFEE TABLES THE SNIPING CONTINUED IN TODAY'S EDITION OF THE POST THE FRONT PAGE OF THE EARLY EDITION TRUMPETED MR HAMILL'S RETURN WITH THE HEADLINE HE'S BACK THE PAPER ALSO INCLUDED NUMEROUS LESSTHANCOMPLIMENTARY ARTICLES ON MR HIRSCHFELD BUT IT IS FAR FROM CLEAR WHETHER YESTERDAY'S OR TODAY'S COMBATIVE EDITION WOULD ACTUALLY DO ANYTHING TO HELP THE POST TO SURVIVE SOME OBSERVERS BELIEVE THE EDITION WAS ITS DYING GASP INDEED THE EDITORS URGED READERS TO CALL MR HIRSCHFELD AND PRINTED HIS OFFICE NUMBER TO PUSH HIM INTO SELLING THE PAPER HE DOESN'T YET FORMALLY OWN OF COURSE THE POINT MAY BECOME YESTERDAY'S NEWS IF THE POST FINALLY SUCCUMBS TO BRUTAL FINANCIAL PRESSURE AND GOES UNDER ON MONDAY THE 192YEAROLD PAPER FILED FOR FEDERAL BANKRUPTCY PROTECTION A HEARING IS SCHEDULED IN US BANKRUPTCY COURT ON FRIDAY TO SORT OUT OWNERSHIP THE POST HAS BEEN SO WEAKENED IN RECENT YEARS THAT IF IT DOES GO BELLY UP ANALYSTS BELIEVE IT WOULDN'T HAVE ALL THAT DRAMATIC AN EFFECT ON THE HOTLY CONTESTED NEW YORK NEWSPAPER WAR ITS AILING TABLOID RIVAL THE DAILY NEWS MIGHT BENEFIT SOMEWHAT WHILE TABLOID NEW YORK NEWSDAY WOULD CONTINUE TAKING ON THE NEW YORK TIMES AT THE UPPER END FOR POST ADVERTISERS WHO ARE SLAPPING HIGHFIVES OVER YESTERDAY'S NASTINESS THERE MAY BE ONE CAVEAT PUBLIC CHARACTER ASSASSINATION MAY BE FUN TO READ AND MAY ACHIEVE COLLECTOR'S EDITION STATUS BUT IT CAN QUICKLY WEAR THIN IF THIS KIND OF JOURNALISM CONTINUES SOME READERS MAY LOOK ASKANCE AT THE PAPER AND THEY MAY SOON LOOK ASKANCE AT ANY ADVERTISER APPEARING IN ITS PAGES WARNS A SPOKESMAN FOR USAIR WHICH HAD A FULLPAGE AD IN YESTERDAY'S EDITION A STORY ON THE POST'S PAGE THREE WENT SO FAR AS TO PREDICT PROBLEMS WITH ADVERTISERS IF THE TERRIBLE TWO MR HIRSCHFELD AND HIS COPUBLISHER WILLIAM A TATUM TAKE OVER THE ARTICLE SAID THE PAPER CAN BID ADIEU TO 225000 WORTH OF ADVERTISING RIGHT OFF THE BAT THE PIECE WASN'T SPECIFIC AS TO WHICH ADVERTISERS WOULD BOLT YESTERDAY'S FRONTPAGE SAID IT ALL AN ILLUSTRATION SHOWED FOUNDER ALEXANDER HAMILTON WITH AN OVERSIZED TEAR RUNNING DOWN HIS CHEEK THE PAPER'S GOSSIPDRIVEN PAGE SIX FEATURED EIGHT ITEMS ALL OF THEM UNFLATTERING SNIPPETS ON THE MALIGNED MR HIRSCHFELD THE VENOM DRIPPING FROM THE PAGES OF THE POST DIDN'T UPSET MR HIRSCHFELD TRUE THE NEWSPAPER MAY HAVE DREDGED UP GAFFES AND MISDEEDS DATING AS FAR BACK AS 17 YEARS BUT CURIOUSLY HE CALLED THE EDITION THE BEST THING THAT HAS EVER HAPPENED INTERVIEWED ON WCBSTV IN NEW YORK HE SAID PEOPLE ARE STANDING IN LINE TO GET THE NEWSPAPER THIS HAS NEVER HAPPENED BEFORE MR TATUM WHO PUBLISHES THE BLACKORIENTED NEWSPAPER AMSTERDAM NEWS AND WAS DESCRIBED IN THE POST AS A SIMPERING SELFPROMOTER WAS LESS PLEASED HE WAS SEEN ON THE LOCAL TV NEWS CALLING THE PAPER'S STORYAFTERSTORY SLAM INCREDIBLY STUPID SINCE THE POST LOST SEVERAL LARGE RETAIL ACCOUNTS LAST YEAR INCLUDING ALEXANDER'S AND MACY'S ADVERTISING PAGES DECLINED A DRAMATIC 35 ACCORDING TO MEDIA CENTRAL A MOUNTAIN VIEW CALIFBASED COMPANY THAT TRACKS NEWSPAPER ADVERTISING IN 1992 THE POST HAD 1945 PAGES OF ADS COMPARED WITH 2984 THE YEAR EARLIER BUT THE POST'S DEMISE WOULDN'T BENEFIT RIVAL PUBLICATIONS SINCE THE ATTACKPRONE TAB IS EVERYONE'S SECOND NEWSPAPER SAYS LANNY BAKER AN ANALYST WITH MORGAN STANLEY & CO NINETYFIVE PERCENT OF POST READERS READ ANOTHER PAPER AS WELL SO THERE ISN'T A LOT OF CIRCULATION TO BE PICKED UP BY COMPETITORS WHILE THE POST HAS SUCH HIGHPROFILE ADVERTISERS AS AMERICAN AIRLINES AND DELTA AIR LINES IT ALSO HAS LESS TONY BUT LONG LOYAL CLIENTS TAKE FOR EXAMPLE NEW YORK VEIN CARE WHICH TREATS VARICOSE & SPIDER VEINS THE BUSINESS WHICH HAS FIVE OFFICES SAYS IT HAS HAD GOOD RESULTS WITH POST READERS AND PLANS TO CONTINUE ADVERTISING THE IMMEDIATE FUTURE OF THE POST IS ANYONE'S GUESS MR HAMILL THE INANDOUTANDBACKIN EDITORINCHIEF REPORTS THAT POST EXECUTIVES ARE HUDDLING WITH UNNAMED POTENTIAL BACKERS WE WANT REASONABLE AND INTELLIGENT MEN HE SAYS WHO WANT TO SAVE THE POST FROM BECOMING A TRAGICOMEDY THE NEWS STAFF GREETED MR HAMILL WITH BACKSLAPS AND HUGS WHEN HE RETURNED DESPITE HIS OWN FIRING YESTERDAY MR HIRSCHFELD BY CONTRAST DIDN'T STEP FOOT IN THE PAPER'S CLEARLY HOSTILE FOURTHFLOOR NEWSROOM INFOMERCIALS DDB NEEDHAM IS THE NEXT BIG NAME ON MADISON AVENUE TO JUMP INTO INFOMERCIALS THE OMNICOM GROUP AGENCY SAID IT IS STARTING UP AN INFOMERCIALPRODUCTION UNIT CONFIRMING A REPORT IN ADVERTISING AGE THREE NEW YORK AGENCY EXECUTIVES JACK MARIUCCI EXECUTIVE CREATIVE DIRECTOR MARY LOU QUINLAN EXECUTIVE VICE PRESIDENT FOR NEW BUSINESS DEVELOPMENT AND PAGE THOMPSON EXECUTIVE VICE PRESIDENT AND MEDIA DIRECTOR ARE OVERSEEING THE VENTURE SAAB SAAB AUTOMOBILE AB HIRED THE FRANKFURT OFFICE OF INTERPUBLIC GROUP'S MCCANNERICKSON TO DO A WORLDWIDE CATALOG ASSIGNMENT FOR ITS 1994 SAAB 900 AND SAAB 9000 SERIES THE SWEDISH AUTO MAKER A JOINT VENTURE OF SAABSCANIA AB AND GENERAL MOTORS CORP RECENTLY TAPPED ANOTHER INTERPUBLIC AGENCY LOWE BRINDFORS OF STOCKHOLM FOR ITS ADVERTISING IN SWEDEN AND FINLAND THE ASSIGNMENT IS A TERRIFIC START TO A LARGER RELATIONSHIP A STATEMENT FROM MCCANN'S GERMAN OPERATIONS SAID 9303170059 930317 INTERNATIONAL WITH EXPANSION PLANS GOING HIS WAY NEW CHIEF KEEPS BRITISH AIR ON COURSE BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE PIECES ARE FALLING INTO PLACE FOR BRITISH AIRWAYS PLC AND ITS CHAIRMAN SIR COLIN MARSHALL EVEN BETTER SIR COLIN CAN SEE A FEW PIECES OF GOOD NEWS FOR HIS AIRLINE'S BALANCE SHEET IN THE OVERCROWDED SKIES OF THE NORTH ATLANTIC FOR EXAMPLE BRITISH AIRWAYS IS SEEING A MODEST RETURN OF BUSINESS TRAFFIC SO AS THE AIRLINE NEARS THE END OF ITS FISCAL YEAR ON MARCH 31 SIR COLIN TALKS LIKE A CONTENT EXECUTIVE HAVING RECENTLY TAKEN THE PILOT'S SEAT AT THE WORLD'S NO 1 INTERNATIONAL AIRLINE SIR COLIN IS CHARTING A FLIGHT PATH WITH FEW CHANGES FROM THE CARRIER'S CURRENT COURSE I CERTAINLY DON'T EXPECT US TO BE RUSHING OFF AND DOING ANY NEW DEALS IN THE NEXT FEW MONTHS SIR COLIN SAID IN AN INTERVIEW LATE LAST WEEK JUST BEFORE NEWS THAT THE US GOVERNMENT WOULD ALLOW BRITISH AIRWAYS TO TAKE THE USAIR STAKE I THINK IT'S TIME TO CONSOLIDATE WHAT WE'VE DONE BRITISH AIRWAYS HAS DONE A LOT LATELY IN ADDITION TO ADDING USAIR AND AUSTRALIA'S QANTAS AIRWAYS TO ITS INVESTMENTS BRITISH AIRWAYS HAS SHUFFLED TOP MANAGEMENT AND SOUGHT UNSUCCESSFULLY SO FAR TO SETTLE ITS DISPUTE WITH VIRGIN ATLANTIC AIRWAYS SIR COLIN STEPPED INTO THE CHAIRMAN'S OFFICE ONLY TWO MONTHS AGO AFTER NEARLY 10 YEARS AS CHIEF EXECUTIVE OFFICER HIS PREDECESSOR LORD KING LEFT AMID A STORM OF CONTROVERSY SURROUNDING BRITISH AIRWAYS' DIRTY TRICKS CAMPAIGN AGAINST VIRGIN SIR COLIN SAYS HE WON'T MAKE MANY CHANGES THE FEW MANAGEMENT CHANGES HE HAS MADE LARGELY INVOLVE NEW TITLES FOR LONGTIME BRITISH AIRWAYS EXECUTIVES HAVING BEEN IN LARGE PART THE ORCHESTRATOR OF THE AIRLINE'S CURRENT STRATEGY I SEE NO NEED TO CHANGE IT HE SAID THE KEY IN THE STRATEGY HAS BEEN TO BUILD GLOBAL ALLIANCES IN THE PAST YEAR THE AIRLINE ACQUIRED REGIONAL AIRLINES TAT OF FRANCE AND DANAIR OF THE UK AND SET UP A GERMAN SUBSIDIARY DEUTSCHE BA BRITISH AIRWAYS ALSO ACQUIRED 25 OF AUSTRALIA'S QANTAS BUT BRITISH AIRWAYS FOCUSED ON THE US THE WORLD'S LARGEST AVIATION MARKET IT PAID 300 MILLION FOR A 246 EQUITY STAKE IN USAIR AND HAS OPTIONS TO INVEST AN ADDITIONAL 450 MILLION IN TWO PHASES OVER THE NEXT FIVE YEARS THE CARRIER'S PLANS ALSO INCLUDE PUTTING THREE OF ITS PEOPLE ON USAIR'S BOARD THOUGH WASHINGTON PUT OFF APPROVAL OF THAT MOVE PENDING REVISION OF THE USUK AVIATION ACCORD WITH A US PARTNER BRITISH AIRWAYS' ONLY WEAK SPOT IS IN ASIA THE WORLD'S FASTESTGROWING AVIATION MARKET THE MOST OBVIOUS GAP IS ASIA IN PARTICULAR THE NORTH PACIFIC SIR COLIN CONCEDED I HAVE NO DOUBT THAT IN DUE COURSE THERE WILL BE OPPORTUNITIES AND WE WILL LOOK AT THEM NOW SIR COLIN MUST LOOK FOR A WAY TO TRANSFORM HIS AIRLINE'S INVESTMENTS INTO BOTTOMLINE IMPROVEMENTS QUARTER AFTER QUARTER BRITISH AIRWAYS SURPRISES ANALYSTS BY REPORTING RESULTS AT THE TOP END OF THEIR ESTIMATES FOR EXAMPLE BRITISH AIRWAYS POSTED A PRETAX PROFIT OF 20 MILLION 287 MILLION IN ITS FISCAL THIRD QUARTER ENDED DEC 31 EVEN AS SOME ANALYSTS PREDICTED THE AIRLINE WOULD REPORT A LOSS FOR THE YEAR ENDING MARCH 31 ANALYSTS EXPECT BRITISH AIRWAYS' PRETAX PROFIT TO SLIDE TO ABOUT 200 MILLION FROM 285 MILLION IN FISCAL 1992 DESPITE ALL THE ACTIVITY SIR COLIN MUST CLEAR TIME FOR A MORE MEDDLESOME ISSUE THE CONFLICT WITH VIRGIN SIR COLIN IS TIGHTLIPPED ABOUT HIS AIRLINE'S DIRTY TRICKS CAMPAIGN AGAINST ITS SMALLER COMPETITOR HEADED BY RICHARD BRANSON REFUSING TO TALK ABOUT THE CONTINUING PEACE TALKS LAWYERS FROM THE TWO AIRLINES HAVE BEEN LOCKED IN SETTLEMENT TALKS FOR WEEKS AND BRITISH AIRWAYS IS APPARENTLY PREPARED TO PAY ABOUT 10 MILLION IN DAMAGES TO VIRGIN BUT BRITISH AIRWAYS' WISH TO HAVE MR BRANSON SIGN AN AGREEMENT NEVER TO TALK ABOUT THE ISSUE IS SAID TO BE PREVENTING AN AGREEMENT SIR COLIN CONCEDES THAT THE ISSUE WIDELY REPORTED IN THE BRITISH MEDIA HAS SAPPED THE ENTHUSIASM OF BRITISH AIRWAYS' STAFF IT HAS TO HAVE AN EFFECT QUITE OBVIOUSLY SIR COLIN SAID WE HAVE TO GET PEOPLE'S ATTENTION FOCUSED BACK ON THE BUSINESS THERE HAVE BEEN A LOT OF NEW DEALS WE'VE DONE IN THE PAST FEW WEEKS AND ALL OF THOSE HELPED 9303170058 930317 TECHNOLOGY PC TRADE GROUP SAYS NORTH AMERICAN SALES ROSE 96 IN 4TH PERIOD WASHINGTON THE SOFTWARE PUBLISHERS ASSOCIATION WHICH REPRESENTS MAKERS OF PROGRAMS FOR PERSONAL COMPUTERS SAID THE INDUSTRY'S SALES IN NORTH AMERICA FOR THE FOURTH QUARTER ROSE 96 TO 171 BILLION COMPARED WITH 156 BILLION IN THE YEARAGO PERIOD FOR THE FULL YEAR PC SOFTWARE SALES ROSE 14 TO 575 BILLION COMPARED WITH 504 BILLION A YEAR AGO THE TRADE GROUP SAID THAT GROWTH IN INTERNATIONAL SALES OUTPACED DOMESTIC WITH REVENUE GROWING BY 317 FOR THE FOURTH QUARTER AND BY 251 FOR THE FULL YEAR SOME OF THE FASTEST GROWTH THE TRADE GROUP REPORTED CAME IN SALES OF HOME SOFTWARE WITH SALES OF EDUCATION PROGRAMS GROWING BY 47 AND ENTERTAINMENT SOFTWARE INCREASING BY 29 9303170056 930317 BUSINESS BRIEF KINDERCARE LEARNING CENTERS INC RESTRUCTURING PLAN CLEARED IN FEDERAL COURT IN ALABAMA KINDERCARE LEARNING CENTERS INC MONTGOMERY ALA SAID ITS CHAPTER 11 BANKRUPTCY RESTRUCTURING PLAN WAS APPROVED IN FEDERAL COURT IN ALABAMA UNDER THE PLAN CREDITORS HAVE AGREED TO FORGO 60 OF COMPANY DEBT ABOUT 350 MILLION IN EXCHANGE CREDITORS WILL RECEIVE ABOUT 865 OF THE COMPANY'S EQUITY KINDERCARE SAID THE COMPANY FILED FOR CHAPTER 11 PROTECTION LAST NOVEMBER AFTER THE RESTRUCTURING IS COMPLETED CURRENT KINDERCARE SHAREHOLDERS WILL COLLECTIVELY OWN 27 MILLION SHARES OF THE 20 MILLION PRIMARY SHARES OF THE COMPANY'S NEW COMMON STOCK AND WILL BE ISSUED WARRANTS TO PURCHASE UP TO AN ADDITIONAL 38 MILLION SHARES OF THE NEW SHARES AT 1250 A SHARE THE ISSUING OF NEW STOCK AND WARRANTS IS SCHEDULED TO BE COMPLETED BY MARCH 31 THE COMPANY SAID THE PLAN ALSO CALLS FOR FULL PAYMENT OF ALL TRADE CREDITORS AND EMPLOYEES 9303170055 930317 HEARD ON THE STREET HIGH PLAINS' PLAN TO OFFER SHARES IS WORRYING SOME INVESTORS WHO FEAR FURTHER STOCK DROP BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HIGH PLAINS CORP'S PLAN TO TAKE ADVANTAGE OF A BULL MARKET IN STOCK OFFERINGS IS BACKFIRING THE STOCK PRICE OF THE WICHITA KAN ETHANOL MANUFACTURER HAS FALLEN NEARLY 21 IN THE MONTH SINCE HIGH PLAINS ANNOUNCED THAT IT WAS PLANNING TO OFFER TWO MILLION ADDITIONAL SHARES IF THE OFFERING GOES THROUGH AS PLANNED IN THE NEAR FUTURE SOME SAY THE PRICE COULD DROP EVEN FURTHER YESTERDAY THE STOCK EASED 1/4 TO 13 1/4 IN NASDAQ OVERTHECOUNTER TRADING IT IS ALL QUITE A COMEDOWN FROM EARLY IN THE YEAR HIGH PLAINS BEGAN 1993 TRADING IN THE HIGH TEENS AND GOT AS HIGH AS 20 1/4 IT WAS ONE OF THE MORE OBSCURE CLINTON PLAYS THE STOCKS THAT MONEY MANAGERS HOPED WOULD BENEFIT FROM THE ENVIRONMENTFRIENDLY POLICIES OF PRESIDENT CLINTON AND VICE PRESIDENT ALBERT GORE THE LOGIC WAS AS STRAIGHT AS MR GORE'S POSTURE HIGH PLAINS MAKES ETHANOL PRODUCED FROM GRAIN FOR BLENDING WITH GASOLINE AS MOTOR FUEL AS THE HIGH PLAINS OFFERING DOCUMENT NOTES ETHANOL INCREASES THE OXYGEN LEVEL IN GASOLINE REDUCING POLLUTANTS BUT TOO MANY SHARES CAN SPOIL THE SOUP HIGH PLAINS'S TWOMILLIONSHARE OFFERING MIGHT NOT SOUND LIKE MUCH BUT WHEN YOU ADD THE PENDING OFFERING TOGETHER WITH OPTIONS RECENTLY MADE AVAILABLE TO GRANT 470000 SHARES AND THE 490000 SHARES ALREADY RESERVED FOR EXERCISABLE OPTIONS THE COMPANY'S TOTAL SHARES LEAP TO A POTENTIAL 57 MILLION FROM 28 MILLION A YEAR EARLIER COMPANY INSIDERS ARE SELLING 100000 SHARES IN THE PENDING OFFERING ANOTHER WARNING SIGN THE INSIDERS ARE LIKE A MONKEY TRYING TO GRAB TOO MANY COOKIES WHO CAN'T GET HIS HAND OUT OF THE JAR SAYS CHARLES MILLS AN ANALYST WITH ANDERSON & STRUDWICK IN RICHMOND VA IF THEY GO TOO FAR EVERYONE IS GOING TO GET HURT IT'S NOT UNUSUAL THAT A COMPANY'S STOCK PRICE DROPS WHEN IT DECIDES TO PLACE ADDITIONAL SHARES IN THE PUBLIC'S HANDS THE INCREASED NUMBER OF SHARES CAN DILUTE THE VALUE OF THE SHARES ALREADY HELD BUT ISSUING TOO MANY SHARES AS HIGH PLAINS IS DOING IS ANOTHER STORY THE ADDITIONAL SHARES BASICALLY CUT THE COMPANY'S EARNINGSPERSHARE IN HALF IT'S AN EARNINGSPERSHARE SPLIT CONTENDS MR MILLS INVESTORS ARE GOING TO PUT UP SOME REAL CASH AND THEY ARE GOING TO GET WEAKENED STOCK HE SAYS THE ADDITIONAL SHARES COMBINED WITH PREVIOUS ONES REDUCE HIS EARNINGS ESTIMATE TO ABOUT 80 CENTS A SHARE FROM 160 A SHARE FOR THE FISCAL YEAR ENDING IN JUNE BY THAT ESTIMATE THE STOCK IS TRADING AT 17 TIMES EARNINGS COMPARED WITH A P/E OF EIGHT BEFORE THE DILUTION HIGH PLAINS DEFENDS ITS PLANNED OFFERING RAYMOND G FRIEND VICE PRESIDENT FINANCE AND MARKETING SAYS SHAREHOLDERS EVENTUALLY WILL PROFIT FROM THE OFFERING AFTER THE COMPANY USES THE PROCEEDS TO PAY DOWN DEBT REDUCE INTEREST EXPENSE AND BUILD A PLANT IN NEBRASKA DILUTION IS A MATTER OF OPINION MR FRIEND SAYS THERE WILL BE DILUTION IN THE INTERIM PERIOD UNTIL THE NEW PLANT IS BUILT BUT WHEN WE BUILD IT WE WILL BE ABLE TO HAVE 10 GALLONS OF PRODUCTION PER SHARE VERSUS THE SIX GALLONS PER SHARE WE NOW HAVE THIS WILL BE BENEFICIAL TO NET INCOME AND EARNINGS PER SHARE HE SAYS THE COMPANY HAS A CONTRACT TO RECEIVE AS MUCH AS 25 MILLION OVER A FIVEYEAR PERIOD OF NEBRASKA MOTORFUEL TAX CREDITS MR FRIEND SAYS THE COMPANY PLANS TO START BUILDING IN JULY AND BE FINISHED AND READY TO PRODUCE IN A YEAR THE COMPANY NOW OPERATES ONE PLANT IN COLWICH KAN BUT SOME INVESTORS ARE WARY NO ONE KNOWS FOR SURE WHETHER THE CLINTON ADMINISTRATION WILL SPUR AN ETHANOL BOOM IN 1995 THERE IS GOING TO BE A REVIEW OF THE CLEAN AIR ACT PROGRAMS SAYS MR MILLS WHILE THERE WILL PROBABLY BE BIG CHANGES MADE IT'S UNCERTAIN WHETHER ENTHANOL METHANOL OR ANY OTHER FUEL ADDITIVE WILL BE THE BIG WINNER HE SAYS SOME BIG INVESTORS WHO ALREADY HAVE DUMPED HIGH PLAINS SAY THEY DIDN'T WANT TO STICK AROUND FOR SUCH A GAMBLE WITH A STOCK LIKE THIS THERE ARE A LOT OF MOMENTUM INVESTORS WHO REACT VERY QUICKLY TO ANY KIND OF POLITICAL UNCERTAINTIES SAYS JOEL TILLINGHAST MANAGER OF FIDELITY INVESTMENTS' LOWPRICED STOCK FUND WHO SAYS HE SOLD THE STOCK LAST MONTH AT 16 ONCE THEY DECIDE THEY DON'T LIKE THE STOCK YOU'LL SEE IT FALL SHARPLY HIGH PLAINS INSISTS IT'S DOING THE RIGHT THING IT JUST SPENT 2 1/2 WEEKS ON A ROADSHOW TO PERSUADE BIG INVESTORS TO BUY THE NEW OFFERING WE WENT TO SO MANY CITIES I LOST COUNT SAYS MR FRIEND UNDERWRITERS NOT SURPRISINGLY ARE UPBEAT PETER RUEL OF FAHNESTOCK & CO'S SYNDICATE DESK SAYS THE DEAL IS IN EXCELLENT SHAPE HE ADDS THERE IS INTEREST FROM ALL WALKS OF LIFE YEAR ENDED JUNE 30 1992 SECOND QUARTER DEC 31 1992 9303170054 930317 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SOUTH KOREA UNVEILED MEASURES TO REMOVE LONGSTANDING RESTRICTIONS ON BUSINESS ACTIVITIES IN AN EFFORT TO BOOST THE SAGGING ECONOMY SOUTH KOREA'S CONGLOMERATES WHICH HAVE BEEN OPERATING UNDER CLOSE CREDIT RESTRICTIONS BY BANKS WILL BE FREE TO BUY REAL ESTATE CURBS WERE IMPOSED IN JUNE 1990 TO PREVENT PROPERTY SPECULATION STARTING NEXT MONTH SMALL FIRMS MAY RAISE FUNDS THROUGH DIRECT FINANCING INCLUDING BOND AND STOCK RIGHTS ISSUES AMONG OTHER CHANGES THE RULE LIMITING ANY SHAREHOLDER TO OWNERSHIP OF NO MORE THAN 10 OF A COMPANY'S STOCK WILL BE LIFTED TRADING COMPANIES MAY HOLD AS MUCH AS 100 MILLION IN FOREIGN CURRENCY 10 TIMES THE OLD CEILING THE MAXIMUM FOR INDIVIDUALS WILL BE DOUBLED TO 10000 TO ENCOURAGE OVERSEAS INVESTMENTS FEASIBILITY STUDIES FOR PROJECTS VALUED AT MORE THAN 30 MILLION WILL BE DISCONTINUED AND THE LIMIT ON OPERATING FUNDS THAT BUSINESSES MAY SEND TO BRANCHES ABROAD WITHOUT GOVERNMENT PERMISSION WILL BE DOUBLED TO 2 MILLION A YEAR SPAIN'S ANNUAL INFLATION RATE FELL TO 47 IN JANUARY FROM 54 IN DECEMBER BUT ECONOMISTS SAID THIS CONFIRMS THE ECONOMY'S DOWNTURN THE NATIONAL STATISTICS AGENCY'S LATEST DATA WERE THE FIRST USING A 1992 PRICE BASE UPDATED FROM 1983 TO REFLECT CHANGES IN SPANIARDS' SPENDING PATTERNS PRIMARILY A TENDENCY TO SPEND MORE ON SERVICES AND LESS ON FOOD ECONOMISTS SAID DECLINING DEMAND AND A STAGNANT ECONOMY LED TO THE JANUARY DECLINE IN THE PRICE INDEX THE ECONOMY CONTRACTED 02 IN LAST YEAR'S FOURTH QUARTER FROM A YEAR EARLIER AND GREW A MEAGER 1 IN 1992 COMPARED WITH 23 IN 1991 DESPITE VENEZUELA'S EFFORTS TO DIVERSIFY ITS ECONOMY THE PETROLEUM SECTOR ACCOUNTED FOR 82 OF ALL FOREIGNEXCHANGE EARNINGS AND 22 OF GROSS DOMESTIC PRODUCT LAST YEAR IN ITS ANNUAL REPORT TO CONGRESS THE OIL AGENCY SAID VENEZUELA WHICH PRODUCES ABOUT 23 MILLION BARRELS A DAY SHOULD BOOST EXPLORATION EFFORTS TO INCREASE OUTPUT TO 4 MILLION BARRELS BY THE YEAR 2002 IT SAID THAT ALTHOUGH THE ECONOMY WILL REMAIN DEPENDENT ON OIL HIGH TAXES ON THE STATE OIL COMPANY RESTRICT ITS LONGTERM DEVELOPMENT ITALY WILL GRADUALLY LIBERALIZE RETAIL PRICES OF CEMENT BREAD MILK AND FERTILIZER THE MINISTRY OF INDUSTRY SAID A GOVERNMENT PANEL DECIDED TO END PRICE CONTROLS FOR THESE FOUR PRODUCTS IMPOSED AFTER WORLD WAR II WHEN SUPPLIES WERE SCARCE THE GOVERNMENT SAID IT WOULD INTERVENE WITH ANTITRUST AUTHORITIES IF INCREASES IN MARKET PRICES OF THE PRODUCTS SEEMED UNJUSTIFIABLY LARGE TRADE GROUPS PROMISED TO KEEP PRICES STABLE INITIALLY AND THEN TO KEEP ANY INCREASES MODERATE THE ROMANIAN PARLIAMENT'S LOWER HOUSE THE CHAMBER OF DEPUTIES VOTED TO MOVE INTO A COLOSSAL PALACE DESIGNED BY FORMER DICTATOR NICOLAE CEAUSESCU AND THE SENATE IS EXPECTED TO FOLLOW SUIT THE LAWMAKERS WILL RELOCATE LATER THIS YEAR FROM THEIR STRUCTURALLY UNSAFE QUARTERS TO THE HOUSE OF THE REPUBLIC AT 3870000 SQUARE FEET ONE OF THE WORLD'S LARGEST BUILDINGS BIGGER THAN THE PENTAGON THE BUILDING WAS 80 FINISHED AT AN ESTIMATED COST OF 1 BILLION WHEN CEAUSESCU WAS OUSTED AND EXECUTED IN DECEMBER 1989 SITUATED ON A MANMADE HILL IT HAS ABOUT 7000 LAVISHLY DECORATED OFFICES APARTMENTS AND BALLROOMS THE LEASE ON FORMER BRITISH PRIME MINISTER MARGARET THATCHER'S BIRTHPLACE A FORMER GROCERY STORY CONVERTED INTO THE PREMIER RESTAURANT IS FOR SALE THE PRICE TAG ON THE 60SEAT RESTAURANT IN GRANTHAM ENGLAND OFFERED THROUGH THE AUCTIONEER CHRISTIES IS 57000 81795 REFURBISHED AND RENOVATED IN RECENT YEARS THE BUSINESS ALSO HAS THREE GUEST ROOMS AND IS PROFITABLE DESPITE BRITAIN'S RECESSION RUSSIA'S OIL EXPORTS ROSE SHARPLY IN THIS YEAR'S FIRST TWO MONTHS WHILE THE REPUBLIC'S MEAT AND GRAIN IMPORTS FELL CRUDE EXPORTS WHICH PROVIDE 60 OF RUSSIA'S FOREIGNCURRENCY EARNINGS TOTALED 825 MILLION BARRELS UP 59 FROM A YEAR EARLIER REFLECTING THE GOVERNMENT'S DIRE NEED FOR HARD CURRENCY TO BUY FOOD STILL RUSSIA BOUGHT ONLY 20 AS MUCH MEAT AND 25 AS MUCH GRAIN AS IN JANUARY AND FEBRUARY 1992 PARTLY BECAUSE THE US BRAKED GRAIN DELIVERIES AFTER RUSSIA BEGAN DEFAULTING ON LOANS IN NOVEMBER STATE FOOD BUYERS ARE WAITING FOR LOWER PRICES AND CLEARER RULES ON IMPORT DUTIES MEANWHILE RUSSIA REMOVED TAXES ON OIL AND GAS EXPORTS BY STATEOWNED FIRMS TO HELP THEM KEEP MORE FOREIGNCURRENCY PROFITS IF THEY SPEND THE WINDFALL TO UPGRADE OUTMODED PRODUCTION EQUIPMENT ONCE THE WORLD'S TOP OIL PRODUCER RUSSIA'S OUTPUT HAS FALLEN TO 7 MILLION BARRELS A DAY FROM THE 1988 PEAK OF 114 MILLION BARRELS AND COULD DROP 12 THIS YEAR POLAND'S STRICT ABORTION LAW TOOK EFFECT ENDING FOUR DECADES OF AVAILABILITY ON DEMAND ABORTIONS ARE BANNED IN PRIVATE CLINICS AND RESTRICTED IN PUBLIC HOSPITALS TO CASES IN WHICH A FETUS IS BADLY DAMAGED OR A PREGNANCY THREATENS A WOMAN'S LIFE OR HEALTH OR RESULTED FROM A CRIME VIOLATORS MAY FACE TWO YEARS IN JAIL BUDAPEST HAS INVITED A HALFDOZEN BANKS AND INVESTMENT HOUSES TO PREPARE PROPOSALS ON REDUCING THE HUNGARIAN CITY'S BUDGET DEFICIT OF 525 BILLION FORINTS 613 MILLION 9303170053 930317 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 LONG ISLAND LIGHTING CO 420 MILLION TWOPART ISSUE OF DEBENTURES PRICED WITH YIELDS RANGING FROM 709 TO 8217 THE FIRST PART 150 MILLION OF NONCALLABLE DEBENTURES DUE MARCH 15 2003 WAS PRICED AS 705 AT 99712 TO YIELD 709 THE SECOND PART 270 MILLION DEBENTURES DUE MARCH 15 2023 NOT CALLABLE FOR 10 YEARS WAS PRICED AS 820 AT 99806 TO YIELD 8217 THE ISSUES HAVE SPREADS OF 103 BASIS POINTS AND 135 BASIS POINTS ABOVE COMPARABLE TREASURYS THE LEAD UNDERWRITER IS LEHMAN BROTHERS CHEVRON CANADA FINANCE LTD 190 MILLION OF NOTES DUE APRIL 1 1998 WON BY GOLDMAN SACHS & CO THE NONCALLABLE ISSUE WILL BE REOFFERED AS 560 AT 99925 TO YIELD 5617 THE ISSUE WAS PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE NOTES ARE RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP CHEVRON CANADA FINANCE IS A UNIT OF CHEVRON CORP US BANCORP 150 MILLION OF SUBORDINATED NOTES DUE MARCH 15 2003 PRICED AS 7 AT 9975 TO YIELD 7035 OR 95 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CONNECTICUT 3328 MILLION OF SERIES 1993B GENERAL OBLIGATION BONDS TENTATIVELY PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 240 IN 1993 TO 565 IN 2012 THE BONDS ARE RATED DOUBLEA BY MOODY'S AND DOUBLEAMINUS BY S&P NEW YORK STATE THRUWAY AUTHORITY 1482 MILLION OF EMERGENCY HIGHWAY CONSTRUCTION AND RECONSTRUCTION BONDS 1993 SERIES A PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP TO YIELD 340 IN 1995 TO 5075 IN 2003 THE BONDS ARE RATED TRIPLEA BY MOODY'S AND S&P DELAWARE TRANSPORTATION AUTHORITY 1025 MILLION OF SERIES 1993 SENIOR AND JUNIOR TRANSPORTATION SYSTEM REVENUE BONDS PRICED BY A DILLON READ & CO GROUP THE TWOPART ISSUE INCLUDES 693 MILLION OF SERIES 1993 SENIOR REVENUE BONDS PRICED TO YIELD FROM 270 IN 1994 TO 575 IN 2010 AND 332 MILLION OF SERIES 1993 JUNIOR REVENUE BONDS PRICED TO YIELD FROM 270 IN 1994 TO 530 IN 2005 MOODY'S HAS RATED THE SENIOR REVENUE BONDS SINGLEA1 WHILE S&P HAS RATED THE ISSUE DOUBLEAMINUS THE JUNIOR REVENUE BONDS ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY A TRIPLEA RATING BY BOTH S&P AND MOODY'S FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES THE OFFERING SERIES GOLD 1503 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 199353 IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES FEDERAL HOME LOAN BANKS 128 MILLION OF NOTES DUE MARCH 24 2000 PRICED AT PAR TO YIELD 619 THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 41 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO FEDERAL HOME LOAN BANKS 111 MILLION OF NOTES DUE MARCH 22 1996 PRICED INITIALLY AS 473 AT PAR THE INITIAL YIELD ON THE ISSUE NONCALLABLE FOR ONE YEAR IS 022 PERCENTAGE POINTS ABOVE THE TREASURY THREEYEAR NOTE RATED TRIPLEA BY MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PACIFIC GAS & ELECTRIC CO 75 MILLION OF CUMULATIVE PREFERRED STOCK WON BY DEALERS LED BY GOLDMAN SACHS & CO THE THREE MILLION SHARES OF 25ASHARE PREFERRED WERE PRICED WITH A DIVIDEND YIELD OF 704 NONCALLABLE FOR 10 YEARS THE SHARES ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAMINUS BY S&P CALIFORNIA FEDERAL BANK A PUBLIC OFFERING OF 34 MILLION NONCUMULATIVE CONVERTIBLE PREFERRED SHARES SERIES A AT 25 A SHARE UNDERWRITERS ARE FIRST BOSTON CORP AND SMITH BARNEY HARRIS UPHAM & CO ETHAN ALLEN INTERIORS INC AN INITIAL PUBLIC OFFERING OF 74 MILLION COMMON SHARES AT 18 A SHARE KIDDER PEABODY & CO WAS LEAD UNDERWRITER PLAYBOY ENTERPRISES INC AN OFFERING OF THREE MILLION SHARES OF NONVOTING CLASS B COMMON STOCK PRICED AT 9375 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO DEVRY INC A SECONDARY OFFERING OF 18 MILLION COMMON SHARES PRICED AT 22 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP KFW INTERNATIONAL FINANCE INC DELAWARE GERMANY 15 BILLION MARKS OF 6 5/8 EUROBONDS DUE APRIL 15 2003 AT ISSUE PRICE 101475 VIA DRESDNER BANK AG REOFFERED AT 9930 TO YIELD 672 A MARGIN OF 015 PERCENTAGE POINT ABOVE THE GERMAN GOVERNMENT 7 1/8 BONDS DUE DECEMBER 2002 GUARANTEED KREDITANSTALT FUER WIEDERAUFBAU FEES 2 1/2 SOCIETE NATIONALE DE CHEMINS FER FRANCE 300 MILLION SWISS FRANCS OF 4 1/2 PUBLIC BONDS DUE APRIL 20 2001 PRICED AT 101 3/8 VIA UNION BANK OF SWITZERLAND FEES TOTAL 2 1/4 POINTS BANK NEDERLANDSE GEMEENTEN NETHERLANDS 150 MILLION SWISS FRANCS OF 4 3/4 PUBLIC BONDS DUE MAY 4 2001 PRICED AT 102 3/4 VIA SWISS BANK CORP FEES TOTAL 2 1/4 POINTS 9303170052 930317 INTERNATIONAL YELTSIN HINTS HE MIGHT DISSOLVE CONGRESS AFTER HIS LATEST SETBACK RUSSIAN LEADER IN RESPONSE TO LOSS OF POWERS PLANS NO HEADLONG DECISIONS' BY LAURIE HAYS AND ELISABETH RUBINFIEN STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN IS HINTING THAT HE WILL SEEK REVENGE AFTER THE POLITICAL BEATING HE RECEIVED FROM RUSSIA'S CONGRESS LAST WEEK THE QUESTION BOILS DOWN TO WHETHER MR YELTSIN WILL ATTEMPT TO SAVE HIS VISION OF DEMOCRACY BY THE UNDEMOCRATIC MEANS AVAILABLE TO HIM THE DECLARATION OF PRESIDENTIAL RULE IN HIS FIRST PUBLIC STATEMENTS SINCE STOMPING OUT OF THE CONGRESS AFTER IT VOTED TO REDUCE HIS POWERS MR YELTSIN SAID HE DOESN'T ACCEPT THE CONGRESSIONAL ACTIONS THERE IS CLEARLY AN ATTEMPT AFOOT TO RESTORE THE COMMUNIST REGIME OF THE SOVIETS HE SAID HIS REMARKS AT A JOINT NEWS CON FERENCE WITH VISITING FRENCH PRESIDENT FRANCOIS MITTERRAND SOUNDED LIKE A TRIAL BALLOON FOR THE IDEA OF PRESIDENTIAL RULE I THINK PRESIDENTIAL RULE IS JUST GOING TO SNEAK UP ON US SAID ONE WESTERN DIPLOMAT IF HE'S SMART HE WON'T MAKE IT ALL THAT CLEARCUT THE MAIN PURPOSE OF PRESIDENTIAL RULE WHICH MR YELTSIN AND OTHER POLITICIANS HAVE BEEN TOUTING AS A DIRE BUT PERHAPS NECESSARY MEASURE FOR PRESERVING REFORMS WOULD BE TO DISBAND THE REFORMRESISTANT CONGRESS ALTHOUGH THE CONGRESS IS THE NATION'S MAJOR PARLIAMENTARY BODY IT WAS ELECTED UNDER THE COMMUNIST PARTY RULES OF THE SOVIET UNION AND IS FULL OF YELTSIN FOES IF IT WERE ELIMINATED MR YELTSIN WOULD BE LEFT AS RUSSIA'S ONLY LAWMAKER MR YELTSIN SAID HE WASN'T PLANNING TO MAKE HEADLONG DECISIONS I AM INVESTIGATING THE SCOPE OF THE POLITICAL DAMAGE INFLICTED BY THE CONGRESS TO THE CONSTITUTION AND STATE STRUCTURE OF THE RUSSIAN FEDERATION SOME SUPPORTERS OF MR YELTSIN WISH HE HAD DISBANDED THE CONGRESS AT THE BEGINNING OF HIS POLITICAL TROUBLES ABOUT A YEAR AGO THEY SAY THAT IF HE CONTINUES TO LET THE CONGRESS SLOW DOWN HIS REFORMS THE COUNTRY WILL SOON BE IN CHAOS EITHER WAY YOU LOOK AT IT THERE ISN'T GOING TO BE DEMOCRACY IN RUSSIA SAID AN AIDE OF MR YELTSIN SO HE SHOULD JUST GO AHEAD AND DO IT BUT PRESIDENTIAL RULE COULD PROVOKE EXPLOSIVE REACTIONS MR YELTSIN WOULD NEED TO LINE UP SUPPORT FOR HIS MOVE FROM THE ARMY THE KGB AND STRONG LABOR GROUPS SUCH AS THE COAL MINERS MR YELTSIN IS STILL THE MOST POPULAR LEADER IN RUSSIA ACCORDING TO OPINION POLLS BUT HE HAS ANGERED MANY GROUPS THAT SUPPORTED HIM FULLY AFTER THE FAILED AUGUST 1991 COUP ATTEMPT MOSTLY BECAUSE THEY FEEL HE HASN'T MOVED FORWARD WITH REFORMS QUICKLY ENOUGH WESTERN NATIONS HAVE ALL BUT SAID THAT THEY WOULD SUPPORT MR YELTSIN IF HE DECLARED PRESIDENTIAL RULE PROVIDED HE AVOIDS BLOODSHED IN HIS PREDICAMENT MR YELTSIN CONTINUES TO COURT SUPPORT FROM THE WEST FOR EXAMPLE AT HIS NEWS CONFERENCE WITH MR MITTERRAND HE LISTED WAYS THE WEST COULD HELP HIM MR YELTSIN SAID HE WOULD LIKE FOREIGNGOVERNMENT CREDITS TO BOOST DIRECT INVESTMENT IN RUSSIA POSTPONEMENT OF REPAYMENT OF SOVIET FOREIGN DEBTS INHERITED BY RUSSIA AND HELP REBUILDING RUSSIA'S INFRASTRUCTURE IN SUCH AREAS AS TRANSPORTATION AND POWER HE ALSO ASKED FOR HELP DEVELOPING OIL RESOURCES AND FOR COOPERATION IN SPACE RESEARCH SCIENCE AND TECHNOLOGY IT'S NOT PURELY FINANCIAL HE SAID BUT WITHOUT DIRECT FINANCIAL HELP WE'LL BE ON THE VERGE OF AN ABYSS MR MITTERRAND SUPPORTED MR YELTSIN'S REQUESTS AND PROPOSED HOLDING AN EMERGENCY SUMMIT MEETING OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS WITHIN A MATTER OF WEEKS TO CONSIDER HOW TO BEST HELP RUSSIA QUICKLY 9303170051 930317 BUSINESS BRIEF DOVER CORP COMPANY PLANS DISTRIBUTION OF DOVER ELECTRONICS SHARES DOVER CORP NEW YORK SAID IT PLANS TO DISTRIBUTE SHARES OF ITS DOVER ELECTRONICS CO UNIT TO EXISTING SHAREHOLDERS DOVER SHAREHOLDERS WOULD RECEIVE ONE SHARE IN THE NEW COMPANY FOR EACH 10 DOVER SHARES DOVER ELECTRONICS WHICH IN 1992 HAD SALES FROM CONTINUING OPERATIONS OF 100 MILLION WILL CHANGE ITS NAME TO DOVATRON INTERNATIONAL THE COMPANY IS A CONTRACT MAKER OF ELECTRONIC COMPONENTS FOR ORIGINAL EQUIPMENT MANUFACTURERS NET INCOME LAST YEAR WAS 5 MILLION DOVATRON EXPECTS TO BE LISTED ON THE NASDAQ SYSTEM UNDER THE SYMBOL DOVT DOVER OFFICIALS SAID DOVER ELECTRONICS IS A SEPARATE COMPANY WITHIN ITS DOVER TECHNOLOGIES SEGMENT BUT FREQUENTLY FINDS ITSELF COMPETING WITH THREE OTHER DOVER TECHNOLOGIES EQUIPMENT COMPANIES EVEN THOUGH ALL FOUR COMPANIES OPERATE QUITE INDEPENDENTLY THE COMMON OWNERSHIP STRUCTURE MAKES EVERYONE UNNECESSARILY UNCOMFORTABLE DOVER SAID DOVER OPERATES 50 BUSINESSES WITH ANNUAL SALES OF 23 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DOVER CLOSED AT 49 UP 125 CENTS 9303170050 930317 KOREAN COMPUTER CHIP MAKERS RECEIVE LIGHT DUTIES IN US DUMPING RULING BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMMERCE DEPARTMENT DECIDED AGAINST SLAPPING HEAVY TARIFFS ON IMPORTS OF SOUTH KOREANMADE COMPUTER CHIPS OPTING FOR SURPRISINGLY SMALL DUTIES RANGING FROM 074 TO 719 THE DECISION COULD LEAD TO SLIGHTLY LOWER CHIP PRICES AND IS LIKELY TO REVIVE THE US MARKET FOR SOUTH KOREAN CHIP MAKERS WHICH ARE GROWING CHALLENGERS TO THEIR AMERICAN AND JAPANESE COMPETITORS WORLDWIDE THE RULING IN THIS CLOSELY WATCHED CASE ALSO AVERTS POTENTIAL BRAWLS FOR PRESIDENT CLINTON BOTH IN THE US AND ABROAD AND WILL HELP ALLAY FOREIGN FEARS OF PROTECTIONISM IN THE NEW ADMINISTRATION FOLLOWING A COMPLAINT BY MICRON TECHNOLOGY INC THAT SOUTH KOREAN MANUFACTURERS WERE DUMPING CHIPS AT UNFAIRLY LOW PRICES IN THE US MARKET INDUSTRY OFFICIALS WERE PREDICTING TARIFFS OF 10 TO 20 WHICH COULD HAVE SQUEEZED KOREAN PRODUCERS OUT OF THE US A PRELIMINARY RULING BY THE COMMERCE DEPARTMENT LAST OCTOBER LEVIED TARIFFS AS HIGH AS 874 CAUSING COMPUTER CHIP PRICES TO SOAR YESTERDAY'S RULING ANNOUNCED AFTER THE CLOSE OF STOCK TRADING WAS A SETBACK FOR MICRON TEXAS INSTRUMENTS INC AND OTHER US MAKERS OF DYNAMIC RANDOM ACCESS MEMORY CHIPS WHICH ACT AS THE MEMORIES FOR COMPUTERS BUT THE LIGHTER TARIFFS WOULD BE A RELIEF TO COMPUTER MAKERS SUCH AS APPLE COMPUTER INC WHICH WOULD HAVE HAD TO PAY MUCH HIGHER PRICES IF THE STEEP TARIFFS HAD REMAINED BEFORE THE DECISION THE SOUTH KOREAN GOVERNMENT HAD BEEN PRESSING THE US TO ACCEPT A COMPROMISE IN WHICH KOREA WOULD ADDRESS US INDUSTRY COMPLAINTS ABOUT MARKET ACCESS AND PATENT PROTECTION THERE IF THE US SUSPENDED THE HUGE PRELIMINARY DUMPING PENALTIES MEANWHILE APPLE AND OTHER COMPUTER MAKERS WERE URGING COMMERCE SECRETARY RON BROWN TO GO ALONG WITH SOUTH KOREA'S PROPOSED SETTLEMENT SO WERE MEMBERS OF A COMPUTER INDUSTRY POLICY GROUP HEADED BY THE CHIEF EXECUTIVES OF SUCH GIANTS AS UNISYS CORP AMERICAN TELEPHONE & TELEGRAPH CO DIGITAL EQUIPMENT CORP AND INTERNATIONAL BUSINESS MACHINES CORP ALTHOUGH MR BROWN REJECTED THE COMPROMISE YESTERDAY'S DECISION ESSENTIALLY ACCOMPLISHES WHAT THE KOREAN GOVERNMENT AND THE US COMPUTER INDUSTRY WANTED G DAN HUTCHESON PRESIDENT OF VLSI RESEARCH OF SAN JOSE CALIF A MARKETRESEARCH FIRM SPECIALIZING IN THE SEMICONDUCTOR INDUSTRY SAID THE DECISION WASN'T EVEN A SLAP ON THE HAND FOR THE KOREAN INDUSTRY THE SURPRISE RULING COULD PROMPT A FALL OFF IN CHIP PRICES HE SAID THE COMMERCE DEPARTMENT DIDN'T EXPLAIN THE REASON FOR CHANGING THE DUMPING LEVIES BUT OFFICIALS INSIST THEIR CALCULATIONS ARE BASED ON COMPLICATED FORMULAS CRITICS CHARGE HOWEVER THAT THE DEPARTMENT CAN FUDGE THE NUMBERS DEPENDING ON HOW THEY WANT THE RULING TO READ SPOKESMEN FOR MICRON AND TEXAS INSTRUMENTS COULDN'T BE REACHED FOR COMMENT AN APPLE SPOKESMAN SAID THE COMPANY DIDN'T HAVE A COMMENT READY THE DEPARTMENT TONED DOWN ITS PRELIMINARY RULINGS AGAINST TWO GIANT SOUTH KOREAN CHIP MAKERS IN PARTICULAR IN ITS BIGGEST CHANGE THE DEPARTMENT SET TARIFFS OF 074 AGAINST SAMSUNG ELECTRONICS CO AND ITS SAMSUNG SEMICONDUCTOR INC SUBSIDIARY THE DEPARTMENT HAD LEVIED DUTIES OF 874 AGAINST THE TWO COMPANIES IN ITS PRELIMINARY RULING GOLDSTAR ELECTRON CO AND ITS GOLDSTAR ELECTRON AMERICA SUBSIDIARY WERE TWEAKED WITH A PENALTY OF 497 MUCH LESS THAN THE 5241 PENALTY LEVIED LAST FALL OTHER SOUTH KOREAN COMPUTER CHIP MAKERS WERE ASSESSED DUTIES OF ONLY 319 A BIG SWING FROM THE 6188 IN THE PRELIMINARY DECISION THE DEPARTMENT LEFT ONE RULING LITTLE CHANGED IT LEVIED TARIFFS OF 719 AGAINST HYUNDAI ELECTRONICS CO AND ITS HYUNDAI ELECTRONICS AMERICA SUBSIDIARY THE PRELIMINARY PENALTY WAS SLIGHTLY LOWER SOUTH KOREAN REACTION THE NEWS WAS WELCOMED BY SOUTH KOREAN CHIP MAKERS WHO COUNT ON THE US FOR MORE THAN HALF OF THEIR TOTAL SALES OF SOCALLED DRAMS INDUSTRY ANALYSTS ESTIMATED THAT DUMPING MARGINS OF MUCH MORE THAN 15 WOULD HAVE PRICED SOUTH KOREAN SEMICONDUCTORS OUT OF THE REACH OF US COMPUTER MAKERS DEALING A HEAVY BLOW TO ONE OF KOREA'S MOST SOPHISTICATED INDUSTRIES SOUTH KOREAN CHIP MAKERS HAVE ASTOUNDED THEIR RIVALS BY HOW QUICKLY THEY HAVE GRABBED MARKET SHARE IN RECENT YEARS STEEP TARIFFS WOULD HAVE RESULTED IN HIGHERPRICED CHIPS CREATING A VOID THAT JAPANESE MANUFACTURERS WOULD HAVE BEEN QUICK TO FILL IN THE US HYUNDAI SAMSUNG AND GOLDSTAR CONTROL ABOUT 30 OF THE US MARKET FOR DRAMS AND THE VALUE OF ALL KOREAN DRAMS IMPORTED INTO THE US IN 1991 TOTALED 446 MILLION THE CASE NOW MOVES TO THE US INTERNATIONAL TRADE COMMISSION A QUASIJUDICIAL BODY THAT IS EXPECTED TO RULE LATE NEXT MONTH ON WHETHER THE US INDUSTRY WAS INJURED BY THE ALLEGED DUMPING IN THE MEANTIME THE CUSTOMS SERVICE WILL COLLECT CASH DEPOSITS OR BONDS ON SOUTH KOREAN COMPUTER CHIPS IMPORTED TO THE US STEVE GLAIN IN SEOUL SOUTH KOREA AND STEPHEN KREIDER YODER IN SAN FRANCISCO CONTRIBUTED TO THIS ARTICLE 9303170049 930317 BUSINESS BRIEF KATY INDUSTRIES INC CARROLL FAMILY'S PROPOSAL TO BUY STOCK IS APPROVED KATY INDUSTRIES INC ELGIN ILL SAID ITS BOARD APPROVED THE PROPOSAL BY MEMBERS OF THE CARROLL FAMILY TO ACQUIRE ALL THE KATY STOCK THE FAMILY DOESN'T OWN AT A PRICE OF 2575 A SHARE OR 1099 MILLION THE COMPANY SAID THE DECISION WAS BASED IN PART UPON THE RECOMMENDATION OF A SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS KATY SAID THE BOARD'S APPROVAL IS SUBJECT TO A DEFINITIVE AGREEMENT WHICH IS EXPECTED PROMPTLY THE AGREEMENT ALSO WILL BE SUBMITTED TO A VOTE OF KATY'S STOCKHOLDERS THE CARROLL FAMILY HOLDS OVER 52 OF KATY'S NINE MILLION COMMON SHARES OUTSTANDING KATY SAID THE FAMILY AND RELATED ENTITIES OWN 4748427 KATY SHARES AS PREVIOUSLY REPORTED THE CARROLL FAMILY SUBMITTED A PROPOSAL IN SEPTEMBER FOR A SIMILAR TRANSACTION AT 22 A SHARE OR ABOUT 954 MILLION THAT PROPOSAL WAS LATER WITHDRAWN BY THE FAMILY AND WASN'T RECOMMENDED BY THE SPECIAL COMMITTEE KATY HAS INTERESTS IN INDUSTRIAL MACHINERY AND COMPONENTS AND CONSUMER PRODUCTS 9303170048 930317 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL DO PEOPLE PROTEST PROPERTY TAXES BY INFLATING THEIR INCOMETAX DEDUCTIONS FROM 1982 TO 1990 PERSONAL DEDUCTIONS FOR STATE AND LOCAL REALESTATE TAXES ON FEDERAL RETURNS ROSE 81 TO 49 BILLION IRS FIGURES SUGGEST THAT FILERS OVERSTATED SUCH DEDUCTIONS BY 15 BILLION IN 1988 BUT AFTER REVIEWING AUDITS OF 1487 RETURNS FOR 1988 THE GENERAL ACCOUNTING OFFICE FIGURES THE IRS CAUGHT ONLY 29 OF THE OVERSTATEMENTS THE FIRST ASSUMPTION WOULD BE THAT FILERS ARE CHEATING BUT THE GAO SAYS CONFUSION OVER DEDUCTION RULES MAY BE A BIGGER FACTOR THE GAO ESTIMATES THAT 91 OF FILERS IN MONTGOMERY COUNTY MD WRONGLY DEDUCTED 216 MILLION OF NONDEDUCTIBLE USER FEES FOR SUCH THINGS AS WATER SERVICE IT ESTIMATES THAT 57 OF NEW JERSEY AND MINNESOTA FILERS WRONGLY INCLUDED 105 MILLION IN REBATED TAXES IN THEIR DEDUCTIONS IT SAYS NEITHER IRS RETURN INSTRUCTIONS NOR PROPERTYTAX BILLS DISTINGUISH CLEARLY BE TWEEN TAXES AND NONDEDUCTIBLE PAYMENTS THE GAO URGES REVISIONS IN RETURN INSTRUCTIONS AND PROPERTYTAX BILLS IT ADVISES CONGRESS TO CONSIDER REQUIRING THE STATES TO REPORT TO THE IRS ON REBATES ALL THE TALK OF TAXES SEEMS TO BE BOOSTING SALES OF RETURNPREPARATION BOOKS TAX LAW CHANGED VERY LITTLE FOR 1992 YET SOME SOURCES SAY FILERS ARE BUYING TAX GUIDES AS IF THERE WERE BIG CHANGES WALDEN BOOKS SAYS ITS SALES ARE EVEN WITH LAST YEAR'S BUT BARNES & NOBLE SAYS UNIT SALES THROUGH FEBRUARY BY ITS CHAINS WHICH IN CLUDE B DALTON WERE UP 7 EXCLUDING NEW STORES THIRD ON BARNES & NOBLE'S BUSINESS BESTSELLER LIST IS ERNST & YOUNG'S GUIDE THE JK LASSER BOOK IS SIXTH THE CONSUMER REPORTS BOOK SEVENTH JEFFREY BROWN OF JOHN WILEY & SONS PUBLISHER OF THE ERNST & YOUNG GUIDE SAYS SALES ARE UP A SURPRISING 15 NO ONE KNOWS JUST WHY BUT PRESIDENT CLINTON'S PROPOSALS HAVE PEOPLE THINKING ABOUT TAXES BROWN ALSO CITES THE RECESSION AS MOTIVATOR MANY MORE PEOPLE ARE CONCERNED ABOUT SAVING TAX DOLLARS MANY OTHERS WHO LOST JOBS ARE GRAPPLING WITH THE TAX INTRICACIES OF PARTTIME WORK OR OF STARTING SMALL BUSINESSES BUSINESS TRAVELERS MAY CLAIM BIGGER MEAL ALLOWANCES FOR MANY CITIES IRS REVENUE PROCEDURE 9321 RAISES PERDIEM RATES FOR MEALS AND INCIDENTAL EXPENSES OF BUSINESS TRAVEL IN THE CONTINENTAL US LAST CHANGED IN 1988 THE RATES SET STANDARDS FOR DAILY ALLOWANCES IF AN EMPLOYER'S PERDIEM OR THE BASIS FOR A TRAVELER'S PERSONAL EXPENSE DEDUCTION DOESN'T EXCEED THE RATES THE ALLOWANCE ISN'T TREATED AS TAXABLE PAY AND THE TRAVELER NEEDN'T SUBSTANTIATE THE AMOUNTS SPENT ONLY 80 OF A MEAL PERDIEM IS DEDUCTIBLE BEFORE THE IRS HAD TWO RATES 34 FOR 63 CITIES AND 26 ELSEWHERE NOW THERE ARE FOUR 26 30 34 AND 38 THEY PROVIDE INCREASES OF 4 OR 8 FOR ABOUT HALF OF 598 LISTED CITIES SAYS MARY B HEVENER OF THE LAW FIRM LEE TOOMEY & KENT WASHINGTON THE 38 RATE APPLIES TO 37 CITIES THE 34 RATE TO 72 CLOUDCROFT NM NEAR ALAMOGORDO WAS DROPPED TO 26 FROM 34 THE CHANGES INCREASE TWO OTHER SETS OF PERDIEMS ONE THAT INCLUDES LODGING AND ONE FOR THE TRANSPORTATION INDUSTRY THE SELFEMPLOYED MUST DECIDE HOW TO HANDLE THEIR 25 HEALTHINSURANCE DEDUCTION IT EXPIRED JUNE 30 CLINTON WANTS TO RENEW IT RETROACTIVELY WHILE AWAITING NEW LAW TAXPAYERS EITHER MAY FILE 1992 RETURNS AND PLAN TO AMEND THEM IF THE DEDUCTION IS EXTENDED THROUGHOUT 1992 OR THEY MAY SEEK FILING EXTENSIONS WHICH MANY ADVISERS FAVOR THE 16TH AMENDMENT CREATING THE INCOME TAX WAS RATIFIED PROPERLY IN 1913 A US JUDGE IN UTAH SAYS IN DISMISSING C SAMUEL AND JOHNA MAY WEST'S DEMAND FOR REFUNDS OF ALL TAXES PAID SINCE 1913 THE WESTS HAD BEEN WARNED NOT TO MAKE SUCH FRIVOLOUS CLAIMS NOW THEY HAVE BEEN ORDERED TO PAY THE IRS'S COSTS AND LEGAL FEES THE IRS MAY REVOKE AN ORGANIZATION'S CHARITABLE EXEMPTION ON ITS OWN WITHOUT SEEKING A JUDICIAL HEARING FIRST THE TAX COURT HAS TOLD UNITED CANCER COUNCIL INC THAT ISSUE DECIDED THE COURT NOW IS TO CONSIDER THE COUNCIL'S OBJECTIONS TO TAX BILLS ISSUED BY THE IRS FOR 1986 AND 1987 INVESTORS RICH IN EXCESS PASSIVE AND CAPITAL LOSSES CAN MAKE THEM PAY OFF BIG LOSSES FROM PASSIVE ACTIVITIES SUCH AS REALESTATE RENTALS GENERALLY MAY OFFSET ONLY PASSIVEACTIVITY INCOME CAPITAL LOSSES FROM SUCH TRANSACTIONS AS SELLING SECURITIES MAY OFFSET ONLY CAPITAL GAINS PLUS 3000 A YEAR OF WAGE OR OTHER INCOME ANY EXCESS LOSSES ARE CARRIED OVER FOR POSSIBLE USE IN FUTURE YEARS STILL SOME FRUSTRATED HOLDERS OF BOTH KINDS OF BOTTLEDUP LOSSES MAY BE ABLE TO UNCORK THEM BOTH WITH ONE MOVE SAYS ACCOUNTING PROF ISRAEL BLUMENFRUCHT OF QUEENS COLLEGE IN NEW YORK EXAMPLE AN INVESTOR HAS CARRIED OVER PASSIVE LOSSES OF 20000 FROM ONE PROPERTY AND 70000 FROM ANOTHER PLUS 100000 OF CAPITAL LOSSES ON STOCK SALES SHE SELLS ONE PROPERTY FOR A 90000 CAPITAL GAIN AND SHIELDS THE GAIN FROM TAX WITH 90000 OF CAPITAL LOSSES YET TAX LAW PROVIDES THAT A CAPITAL GAIN FROM SELLING A PASSIVE ACTIVITY HAS A DUAL IDENTITY AS PASSIVE INCOME BLUMENFRUCHT SAYS THAT IN EFFECT FREES THE 90000 OF EXCESS PASSIVE LOSSES TO BE USED TO OFFSET OTHER INCOME SUCH AS SALARY MANY REALESTATE INVESTORS MAY BE IN THIS SITUATION BLUMENFRUCHT SAYS BRIEFS THE IRS'S NEW PUBLICATION 953 INTERNATIONAL TAX INFORMATION FOR BUSINESS OFFERS SIMPLIFIED GUIDANCE FOR US AND FOR EIGN COMPANIES WYOMING LEGISLATORS HAVE APPROVED A RISE OF ONE PERCENTAGE POINT IN THE STATE'S SALES TAX TO 4 9303170047 930317 WHY CUSTOMERS TRASH THE GARBAGE MAN BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON A MULTIMILLIONDOLLAR MARKETRESEARCH EFFORT IS UNDER WAY TO FIND OUT WHY PEOPLE BECOME UNHAPPY WITH THEIR GARBAGE MAN THIS ISN'T SOME ACADEMIC BOONDOGGLE BUT A SERIOUS ATTEMPT BY THE NATION'S NO 2 TRASH HAULER BROWNINGFERRIS INDUSTRIES INC TO CORRECT A LONGSTANDING PROBLEM THE LOSS EACH YEAR OF ABOUT 14 OF ITS CUSTOMER BASE THIS TREMENDOUS CUSTOMER CHURN AS IT'S CALLED BY BROWNINGFERRIS'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM D RUCKELSHAUS REQUIRES A HERCULEAN SALES EFFORT JUST TO KEEP THE COMPANY FROM SHRINKING LAST YEAR FOR INSTANCE BROWNINGFERRIS MANAGED A NET GAIN OF 33000 US COMMERCIAL AND INDUSTRIALHAULING CUSTOMERS TO 570000 BUT THAT MEANT ACTUALLY HAVING TO FIND 103000 NEW CUSTOMERS BECAUSE 70000 OLD ONES WERE LOST RAPID CUSTOMER TURNOVER WAS LONG ACCEPTED AS UNAVOIDABLE IN THE GARBAGE BUSINESS AND WITH BROWNINGFERRIS AND ITS RIVAL NO 1 HAULER WASTE MANAGEMENT INC OAK BROOK ILL EACH GOBBLING UP HUNDREDS OF SMALLER HAULERS DURING THE 1970S AND 1980S THE TURNOVER DIDN'T SEEM TO SLOW THEIR RAPID GROWTH HOWEVER WITH THE INDUSTRY STILL FEELING THE EFFECTS OF A DEEP RECESSION AND FACING STIFFER COMPETITION FROM REGIONAL HAULERS AND MUNICIPALITIES THAT HAUL THEIR OWN TRASH REDUCING CUSTOMER TURNOVER IS SEEN AS CRUCIAL TO GROWTH IN 1990 BROWNINGFERRIS HIRED ROBERT WESTBROOK A RICE UNIVERSITY BUSINESS PROFESSOR AND CUSTOMERSATISFACTION CONSULTANT TO MEASURE CUSTOMER HAPPINESS AND FIND OUT EXACTLY WHY PEOPLE SWITCH HAULERS ALREADY THE INITIAL STAGES OF THE PROGRAM HAVE CUT TO ABOUT 12 THE ANNUAL RATE OF CUSTOMER LOSS WE WANT TO BE A COMPANY THAT IS ALMOST TOTALLY DEDICATED TO SATISFYING ITS CUSTOMERS MR RUCKELSHAUS SAYS THAT'S NOT THE WAY THE COMPANY IS USED TO THINKING ABOUT THE BUSINESS WE WERE FOR YEARS IN A SELLER'S MARKET THUS BROWNINGFERRIS BELATEDLY HAS JOINED MORE GLAMOROUS CONSUMERPRODUCT AND HIGHTECHNOLOGY COMPANIES IN HEEDING THE ADVICE OF MANAGEMENT GURUS TO STAY CLOSE TO THE CUSTOMER OF COURSE A HAULER CAN GET TOO CLOSE TRASH TRUCKS HITTING BUILDINGS KNOCKING DOWN WALLS AND CRACKING DRIVEWAYS ARE A FREQUENT SOURCE OF CUSTOMER COMPLAINTS BROWNINGFERRIS USING OUTSIDE CONSULTANTS SURVEYED 30000 OF ITS CUSTOMERS TO DESIGN A SATISFACTION INDEX THAT RATES THE PERFORMANCE OF EACH OF THE COMPANY'S 200 HAULING DISTRICTS THE COMPANY HAS ALSO BEGUN ASKING THOUSANDS MORE OF ITS CUSTOMERS EACH MONTH TO RESPOND IN WRITING TO QUESTIONS ABOUT SERVICE RECENT RESPONSES FROM CUSTOMERS IN THE SOUTHEAST AND PARTS OF THE MIDWEST PROVIDE AN UNSCIENTIFIC YET GRAPHIC LOOK AT WHY PEOPLE GET MAD AT THEIR TRASH MAN DRIVER PERFORMANCE LATENESS MESSINESS AND NOISE MAKE FOR AN UNPOPULAR TRASH MAN A BILOXI MISS SOUVENIR SHOP APPARENTLY PRECEDED ON ONE DRIVER'S ROUTE BY A SEAFOOD ESTABLISHMENT COMPLAINED THE TRUCK SPILLS SHRIMP JUICE IT SMELLS SO NASTY WE HAVE TO HOSE DOWN THE PARKING LOT A FORT MYERS FLA CONDO ASSOCIATION ACCUSED ITS BROWNINGFERRIS DRIVER OF HOT RODDING HE SPEEDS AND DRIVES RECKLESSLY WE WOULD REALLY LIKE TO SEE SOMEONE ELSE DO OUR ROUTE PLACEMENT OF DUMPSTER EMPTIED CONTAINERS ARE LEFT BLOCKING BACK DOORS AND DRIVEWAYS AND GENERALLY RUINING THE VIEW A CHARLOTTE MICH APARTMENT HOUSE WANTS ITS DUMPSTER'S BACK WHEELS ON THE GRASS OTHERWISE WHEN THERE IS A STRONG WIND THE DUMPSTER GETS BLOWN DOWN THE PARKING LOT SOMETIMES INTO A PARKED CAR CONDITION OF DUMPSTERS BOTTOMS RUST OUT PAINT CHIPS OFF LIDS BEND AND WON'T CLOSE JUST CALL AND BROWNINGFERRIS WILL PROMPTLY REPAIR OR REPLACE USUALLY A RALEIGH NC VETERINARIAN'S DUMPSTER HAS A HOLE IN THE SIDE AND GARBAGE FALLS OUT I HAVE CALLED THREE TIMES ABOUT IT BEING REPLACED THE BROWNINGFERRIS CREW SHOWED UP AND PAINTED IT SOME DUMPSTER PROBLEMS ARE SPECIAL BECAUSE THIS IS A PET BOARDING KENNEL THE NATURE OF MY TRASH IS UNPLEASANT WROTE AN ERIE MICH CUSTOMER WHEN IT RAINS I HAVE 40PLUS GALLONS OF POOP SOUP WHEN IT FREEZES IT FREEZES EVERYTHING ONTO THE DUMPSTER UNTIL THE SPRING THAW A NEW DUMPSTER WAS FINALLY DELIVERED WITH A LID TO KEEP OUT RAIN AND SNOW NOT MY TRASH RUNNING A GARBAGE COMPANY MEANS OCCASIONALLY GETTING CAUGHT BETWEEN FEUDING NEIGHBORS NEARBY RESTAURANTS DUMPING IN OUR DUMPSTER CAUSES RATS TO CONGREGATE AT OUR BACK DOOR COMPLAINED A ROME GA BEAUTYSUPPLY HOUSE AND SOME DUDES ON FRATERNITY ROW IN ATLANTA CAN'T BELIEVE THE MESS THE BROTHERS AT THESE OTHER HOUSES LEFT AT A SHARED DUMPSTER AREA TO KEEP THE PEACE BROWNINGFERRIS WILL INSTALL LOCKS ON DUMPSTERS WHERE ARE THE LOCKS THE DRIVERS ARE TOO LAZY TO GET OUT OF THE TRUCK AND PUT THE LOCKS BACK ON AFTER THEY DUMP THE GARBAGE WROTE A GADSDEN ALA RENTAL COMPANY PRICE YOU LEFT A SMALLER CONTAINER AND DOUBLED THE PRICE A GREENVILLE KY CUSTOMER COMPLAINED AN ALPHARETTA GA VENDING BUSINESS OWNER CALLED A 50 PRICE RISE IN JUST ONE YEAR'S TIME ABSURD ESPECIALLY WHEN THE DRIVER SEEMS TO MAKE IT A POINT TO SEE HOW MUCH TRASH HE CAN SPILL WHEN EMPTYING THE DUMPSTER CUSTOMERS FREQUENTLY MENTION PRICE WHEN THREATENING TO SWITCH HAULERS BUT MR RUCKELSHAUS NOTES AS IN THESE TWO CASES THEY'RE USUALLY ANGRY ABOUT SOMETHING ELSE TOO IF YOU SOLVE THAT PROBLEM FOR THEM THE PRICE ISSUE GOES AWAY BUT CUSTOMERS AREN'T ALWAYS ANGRY RETAINING 86 OR SO OF ITS CUSTOMERS EACH YEAR MEANS BROWNINGFERRIS IS DOING SOMETHING RIGHT AND MANY CUSTOMERS WRITE WITH KIND WORDS WE DO APPRECIATE THE RECYCLING SERVICES WROTE A SATISFIED OPERATOR OF HOUSING FOR THE ELDERLY IN SANDUSKY OHIO SIGNING OFF WITH A FRIENDLY TIP WANT YOU TO KNOW THAT WASTE MANAGEMENT IS COMING TO TOWN AND MARKETING LIKE CRAZY FROM A HEATING AND AIRCONDITIONING FIRM IN THE SAME AREA CAME THE HIGHEST PRAISE BROWNINGFERRIS DOES A FINE JOB WE NEVER SEE THEM THE INDUSTRY'S COMPLACENCY TOWARD ITS CUSTOMERS MAY IN PART BE A LEGACY OF ALLEGED AGREEMENTS BY HAULERS IN SEVERAL MAJOR CITIES NOT TO SOLICIT ONE ANOTHER'S CUSTOMERS LEAVING BUSINESSES CAPTIVE TO A HAULER'S SERVICE BUT BY THE TIME MR RUCKELSHAUS A TWOTIME ENVIRONMENTAL PROTECTION AGENCY CHIEF WAS NAMED BROWNINGFERRIS CHAIRMAN IN 1988 COMPETITION HAD INCREASED HE WAS COMFORTED THAT BROWNINGFERRIS MONTHLY SIGNED UP ABOUT 6000 NEW CUSTOMERS BUT AGHAST THAT NEARLY AS MANY 4000 TO 5000 WERE LOST THE HAULERS ARE UNUSUALLY VULNERABLE TO TURNOVER COMPETITORS CAN AND DO SPOT NEARLY EVERY CUSTOMER BY SIMPLY ROAMING ALLEYS AND STREETS LOOKING FOR THE BLUE BROWNINGFERRIS OR MAROON WASTE MANAGEMENT DUMPSTERS AFTER THAT SIMPLY UNDERCUTTING THE PRICE IS OFTEN ENOUGH TO TAKE AWAY THE BUSINESS UNLESS GOOD SERVICE HAS CREATED LOYAL CUSTOMERS 9303170046 930317 TECHNOLOGY BRIEF SUN MICROSYSTEMS INC UNIT RUSSIAN FIRM TO CREATE WIRELESS COMMUNICATIONS THE COMPUTER UNIT OF SUN MICROSYSTEMS INC AND A PRIVATE RUSSIAN CORPORATION SIGNED A LICENSING AND JOINT DEVELOPMENT AGREEMENT TO CREATE WIRELESS COMMUNICATION TECHNOLOGY AS PART OF THE DEAL THE UNIT SUN MICROSYSTEMS COMPUTER CORP WILL TAKE A 10 INTEREST IN THE RUSSIAN CONCERN CALLED ELVIS+ LTD SUN MOUNTAIN VIEW CALIF ALREADY HAS A FEW TEAMS OF RUSSIAN RESEARCHERS WORKING ON ITS BEHALF MAINLY ON COMPUTER DESIGN AND SOFTWARE THE COMPANY SAID THAT ELVIS+ EMPLOYS 53 RESEARCHERS CONSIDERED AMONG RUSSIA'S BEST IN THE FIELD OF WIRELESS COMMUNICATIONS A LEADER IN WIRED DESKTOP COMPUTING SUN HAS SET ITS SIGHTS ON THE NASCENT FIELD OF WIRELESS DATA COMMUNICATIONS THIS MONTH THE COMPANY SAID IT FORMED A SUBSIDIARY CALLED FIRSTPERSON INC HEADED BY A FORMER SUN RESEARCH CHIEF 9303170045 930317 BUSINESS BRIEF PCI SERVICES INC FIRM SAYS PROFIT ESTIMATES ARE TOO HIGH STOCK SINKS PCI SERVICES INC SAID IT EXPECTS RESULTS FOR ITS FISCAL SECOND QUARTER AND FULL YEAR TO BE BELOW ANALYSTS' ESTIMATES BECAUSE OF DEFERRED ORDERS FROM SEVERAL BIG PHARMACEUTICAL CLIENTS PCI SHARES FELL 14 YESTERDAY CLOSING AT 925 DOWN 150 IN NATIONAL OVERTHECOUNTER TRADING THE PHILADELPHIA PHARMACEUTICAL PACKAGING SERVICES CONCERN SAID NET INCOME FOR THE QUARTER ENDING MARCH 31 COULD RUN 10 CENTS A SHARE BELOW ANALYSTS' EXPECTATIONS OF 30 CENTS A SHARE THAT ESTIMATE WOULD PUT OVERALL NET FOR THE QUARTER AT 14 MILLION COMPARED WITH NET OF 28 CENTS A SHARE OR 14 MILLION ON AN AVERAGE OF ABOUT 17 MILLION FEWER SHARES OUTSTANDING A YEAR EARLIER REVENUE IS EXPECTED TO RISE TO ABOUT 28 MILLION FROM 178 MILLION PCI ALSO SAID IT BELIEVES ANALYSTS' PROJECTIONS OF 120 A SHARE FOR ITS FISCAL 1993 EARNINGS MAY BE TOO HIGH THE COMPANY EXPECTS EARNINGS FOR THE YEAR ENDING SEPT 30 TO BE ABOUT FLAT OR SLIGHTLY LOWER THAN THE 105 A SHARE IN FISCAL 1992 9303170044 930317 WHAT'S NEWS BUSINESS AND FINANCE VOLKSWAGEN SHOOK UP ITS MANAGEMENT BOARD AND CONFIRMED IT WON A TUG OF WAR WITH GENERAL MOTORS OVER J IGNACIO LOPEZ DE ARRIORTUA AN EXECUTIVE KNOWN FOR COST CUTTING LOPEZ WAS NAMED TO THE GERMAN AUTO MAKER'S BOARD AND GIVEN CONTROL OF PRODUCTION AND PURCHASING THE US IMPOSED UNEXPECTEDLY SMALL TARIFFS ON SOUTH KOREAN COMPUTER MEMORY CHIPS IN A SETBACK FOR US MAKERS OF SUCH CHIPS AND A VICTORY FOR AMERICAN COMPUTER MAKERS THE RULING COULD HELP ALLAY FOREIGN FEARS OF PROTECTIONISM UNDER CLINTON THE CLINTON ADMINISTRATION SAID IT WOULD SEEK 45 BILLION TO COMPLETE THE SAVINGSANDLOAN BAILOUT THE AMOUNT LARGER THAN AN AIDE INDICATED LAST WEEK SUGGESTS THE ADMINISTRATION WOULD RATHER ERR ON THE HIGH SIDE THE MAIN SOFTWARE SUPPLIERS OF THE UNIX COMPUTER OPERATING SYSTEM AGREED TO TRY TO MAKE THEIR VARIOUS FORMS OF UNIX MORE COMPATIBLE EXECUTIVES CITED PRESSURE FROM CUSTOMERS AND COMPETITION FROM MICROSOFT NATIONSBANK IS ACQUIRING CHICAGO RESEARCH & TRADING A LEADING OPTIONS TRADING PARTNERSHIP AND PRIMARY DEALER IN GOVERNMENT SECURITIES GENERAL MOTORS RECALLED 18 MILLION 19881993 PICKUP TRUCKS AND SPORTUTILITY VEHICLES TO REPLACE DEFECTIVE HOSES THAT COULD SPARK A FIRE BUT GM IS STILL RESISTING A RECALL OF OLDER PICKUPS BUILT WITH SIDEMOUNTED GASOLINE TANKS GPA GROUP'S BANK LENDERS APPEAR UNABLE TO MEET A DEADLINE SET FOR FRIDAY TO RESTRUCTURE THE DEBTS OF THE IRISH AIRCRAFT LEASING COMPANY ASHLAND COAL DISCLOSED THAT IT AND OTHER COAL MINE OWNERS AGREED TO SUBSIDIZE MINES AFFECTED BY SELECTIVE STRIKES DURING UNION CONTRACT TALKS MUTUAL FUNDS WOULD BE ALLOWED TO SELL SHARES THROUGH NEWSPAPER ADS AND MAILINGS WITHOUT FIRST GIVING CUSTOMERS A PROSPECTUS UNDER RULES EXPECTED TO BE PROPOSED BY THE SEC HOUSING STARTS REBOUNDED 25 IN FEBRUARY AFTER SINKING 84 IN JANUARY BUILDING PERMITS A SIGN OF FUTURE HOUSING STARTS DROPPED 31 FOR THEIR SECOND CONSECUTIVE DECLINE NEW YORK MERC CHAIRMAN Z LOU GUTTMAN FACING CHARGES OF TRADING VIOLATIONS FAILED IN HIS BID FOR REELECTION LOSING TO VICE CHAIRMAN DANIEL RAPPAPORT BY A VOTE OF 386213 STATE FARM POSTED A 12 BILLION LOSS FOR 1992 THE MUTUAL INSURER'S FIRST ANNUAL LOSS IN 23 YEARS REFLECTING CLAIMS RELATED TO HURRICANE ANDREW BRITAIN'S GOVERNMENT UNVEILED A BUDGET CALLING FOR TAX INCREASES OVER TWO YEARS TO OFFSET IMMEDIATE STEPS TO AID JOB SEEKERS AND BUSINESSES JAPAN'S TRADE SURPLUS GREW 37 IN FEBRUARY THE INCREASE WAS THE SMALLEST IN NEARLY TWO YEARS SUGGESTING THAT THE SURPLUS'S GROWTH IS SLOWING TOKYO STOCKS FELL TUESDAY AS INVESTORS TOOK PROFITS AFTER PRICES ADVANCED FOR SEVEN STRAIGHT SESSIONS LONDON AND FRANKFURT SHARES ALSO DECLINED TAX BREAKS FOR INVESTMENTS IN MANUFACTURING AND RESEARCH SHOULD BE BIGGER THAN THE CLINTON ADMINISTRATION HAS PROPOSED A COMPETITIVENESS COMMISSION SET UP BY CONGRESS URGED MELLON BANK IS EXPLORING THE SALE OF THREE INFORMATION SERVICE UNITS ANALYSTS SAID LIKELY BUYERS INCLUDE MELLON'S NONBANK RIVALS IN THE FIELD BONDS LEHMAN BROTHERS TREASURY INDEX 501297 UP 1969 COMMODITIES OIL 2013 A BARREL OFF THREE CENTS DOW JONES FUTURES INDEX 13127 OFF 124 SPOT INDEX 12551 UP 005 DOLLAR 11700 YEN OFF 160 16640 MARKS UP 00010 9303170043 930317 STATE FARM HURT BY STORM POSTS 1992 LOSS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL SOCKED BY HURRICANE ANDREW STATE FARM MUTUAL AUTOMOBILE INSURANCE CO REPORTED ITS FIRST ANNUAL LOSS IN 23 YEARS WHILE EARNINGS FELL AT TWO OTHER LARGE MUTUAL INSURERS METROPOLITAN LIFE INSURANCE CO AND NEW YORK LIFE INSURANCE CO BECAUSE OF CHANGES IN ACCOUNTING RULES THE THREE COMPANIES ARE OWNED BY POLICYHOLDERS INSTEAD OF INVESTORS BUT THEIR RESULTS HAVE IMPLICATIONS FOR PUBLICLY HELD INSURERS BECAUSE THE MUTUALLY OWNED COMPANIES ARE SOME OF THE BIGGEST IN THE INDUSTRY THE COMPANIES RECENTLY DISCLOSED THEIR RESULTS IN FILINGS TO STATE INSURANCE REGULATORS STATE FARM HURT BY A 37 BILLION LOSS ON HURRICANE ANDREW LOST 12 BILLION IN 1992 COMPARED WITH A 12 BILLION PROFIT THE PREVIOUS YEAR THE COMPANY'S CAR INSURANCE UNIT MADE 18 BILLION UP FROM 1991'S PROFIT OF 13 BILLION BUT THE HOMEOWNER INSURANCE UNIT LOST 31 BILLION COMPARED WITH A 1991 LOSS OF 235 MILLION THE ANDREW TOLL WAS THE LARGEST AMOUNT EVER LOST BY A US INSURER FOR A SINGLE EVENT A STATE FARM SPOKESMAN SAID THE COMPANY HASN'T HAD A LOSING YEAR SINCE 1969 ACCORDING TO RATING AGENCY AM BEST CO STATE FARM IS THE BIGGEST INSURER IN THE COUNTRY BASED ON PREMIUMS IN 1991 THE LATEST YEAR IN WHICH FIGURES ARE AVAILABLE STATE FARM REPORTED PREMIUMS OF 284 BILLION COMPARED WITH 281 BILLION FOR PRUDENTIAL INSURANCE CO OF AMERICA PRUDENTIAL NEWARK NJ EASILY OUTDISTANCES STATE FARM IN ASSETS BUT LAGS FAR BEHIND IN SURPLUS OR NET WORTH STATE FARM'S SURPLUS WAS 1875 BILLION AT YEAREND 1992 COMPARED WITH 98 BILLION AT PRUDENTIAL STATE FARM IS THE BEST CAPITALIZED COMPANY IN THE INDUSTRY SAID ERIC SIMPSON AN ANALYST WITH AM BEST THEY TOOK IT ON THE CHIN WITH ANDREW AND NOW THEY WILL MOVE ON HE SAID IT IS UNLIKELY STATE FARM WILL DRAMATICALLY RAISE INSURANCE RATES TO MAKE UP THE LOSSES A NEW ACCOUNTING RULE DAMPENED RESULTS AT MET LIFE AND NEW YORK LIFE THE RULE CREATED BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS FORCES INSURERS TO SPREAD CAPITAL GAINS ON FIXEDINCOME SECURITIES OVER THE REMAINING LIFE OF AN INVESTMENT THE RULE PREVENTS INSURERS FROM BOOSTING THEIR SURPLUS SIMPLY BY LIQUIDATING THEIR INVESTMENT PORTFOLIO MET LIFE WHICH HAS MORE INSURANCE IN FORCE THAN ANY OTHER LIFE INSURER EARNED 225 MILLION IN 1992 DOWN FROM 237 MILLION IN 1991 THE COMPANY WOULD HAVE MADE 492 MILLION IN 1992 UNDER THE OLD ACCOUNTING RULES MET'S OPERATING EARNINGS SOARED IN 1992 TO 139 MILLION FROM 89 MILLION BECAUSE OF ITS STRATEGY OF INCREASING REVENUE WHILE HOLDING THE LINE ON EXPENSES REVENUE ROSE TO 29 BILLION FROM 285 BILLION WE WANT TO IMPROVE EFFICIENCY SAID STEWART NAGLER SENIOR EXECUTIVE VICE PRESIDENT SURPLUS ROSE TO 5 BILLION IN 1992 FROM 476 BILLION IN 1991 SEPARATELY MET LIFE CLOSED YESTERDAY ON ITS ACQUISITION OF FIRST EXECUTIVE CORP'S EXECUTIVE LIFE INSURANCE CO OF NEW YORK WHICH WAS SEIZED BY THE NEW YORK INSURANCE DEPARTMENT TWO YEARS AGO THE TRANSACTION MEANS MET WILL PICK UP 73000 POLICYHOLDERS AND 15 BILLION IN ASSETS NEW YORK LIFE EARNED 271 MILLION IN 1992 DOWN FROM 280 MILLION IN 1991 THE COMPANY WOULD HAVE EARNED 450 MILLION IF THE ACCOUNTING RULES HAD BEEN THE SAME REVENUE ROSE 10 TO 147 BILLION FROM 1336 BILLION SURPLUS INCREASED 7 TO 35 BILLION FROM 327 BILLION 9303170042 930317 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 1/2 LOW 2 1/4 BID 1/2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 119 DAYS 312 120 TO 149 DAYS 315 150 TO 179 DAYS 317 180 TO 239 DAYS 320 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 317 30 DAYS 319 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 267 TWO MONTHS 268 THREE MONTHS 283 SIX MONTHS 302 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 315 ONE MONTH 315 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 304 60 DAYS 304 90 DAYS 307 120 DAYS 310 150 DAYS 311 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 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 741 60 DAYS 751 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 737 60 DAYS 747 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 281 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303170041 930317 ABREAST OF THE MARKET STOCKS END MIXED ON NEW REPORTS OF SLOW ECONOMY SLIM EARNINGS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED MIXED AS INVESTORS GRAPPLED WITH FRESH REPORTS OF A SLOWING ECONOMY AND EARLY SIGNS OF SLIMMER FIRSTQUARTER PROFITS THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 054 POINT TO 344295 BUT STANDARD & POOR'S 500STOCK INDEX SLIPPED 006 TO 45137 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 016 TO 24881 VOLUME ON THE BIG BOARD WAS MODERATE WITH 217730000 SHARES CHANGING HANDS UP FROM 192690000 SHARES MONDAY ADVANCING ISSUES EDGED OUT DECLINERS 955 TO 945 ON THE AMERICAN STOCK EXCHANGE MEANWHILE THE MARKET VALUE INDEX CLIMBED TO A RECORD HIGH RISING 014 POINT TO 42308 MANY ANALYSTS SAID STOCKS TRADED IN A NARROW RANGE BECAUSE MANY INVESTORS WERE NERVOUS ABOUT TODAY'S REPORT ON THE FEBRUARY CONSUMER PRICE INDEX FROM A SHORTTERM TRADING POINT OF VIEW THIS IS GOING TO BE A VERY HAZARDOUS 24 HOURS BECAUSE THE CPI REPORT IS VERY IMPORTANT SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ MR MCALINDEN SAID THAT IF THE RISE IN CONSUMER PRICES IS BELOW THE CONSENSUS ESTIMATE OF 03 THEN BONDS WILL RALLY SHARPLY SWEEPING STOCKS HIGHER TOO BUT IF CONSUMER PRICES ADVANCE BEYOND ECONOMISTS' ESTIMATES THEN THE STOCK AND BOND MARKETS COULD BE POISED FOR SETBACKS BIG BOARD STOCKS STARTED HIGHER BUT TURNED NEGATIVE SHORTLY BEFORE MIDDAY ANALYSTS SAID STOCKS WERE PRESSURED AFTER THE COMMERCE DEPARTMENT SAID HOUSING STARTS CLIMBED 25 LAST MONTH LESS THAN WHAT ANALYSTS WERE EXPECTING EVEN MORE BEARISH FOR THE MARKET WAS NEWS THAT BUILDING PERMITS A GAUGE OF FUTURE CONSTRUCTION ACTIVITY FELL 31 IN FEBRUARY THOUGH STOCK PRICES RECOVERED BY EARLY AFTERNOON SIGNS OF A SLOWDOWN IN RETAIL SALES THIS MONTH GAVE INVESTORS ANOTHER REASON TO SELL SHARES ACCORDING TO THE JOHNSON REDBOOK REPORT SALES AT THE NATION'S RETAILERS FELL A SEASONALLY ADJUSTED 36 IN THE SECOND WEEK OF MARCH FROM FEBRUARY MISERABLE WEATHER WAS BEHIND THE POOR SALES DATA ACCORDING TO JOHNSON REDBOOK BUT THE DROP FOLLOWED A 16 DECLINE IN SALES IN THE FIRST WEEK IN MARCH FROM THE AVERAGE IN FEBRUARY WHILE THE BROADER STOCK INDEXES SUGGESTED THAT TRADING WAS RATHER LIFELESS YESTERDAY R GREGG NABHAN SENIOR VICE PRESIDENT OF INSTITUTIONAL SALES AT SG WARBURG SAID INVESTORS ARE FOCUSING THEIR ATTENTION ON ANOTHER SEGMENT OF THE MARKET NEW STOCK ISSUES RIGHT NOW WE ARE IN THE CYCLE WHERE THE FOCUS HAPPENS TO BE ON THE CAPITAL MARKETS PROCESS RATHER THAN SECONDARY STOCK TRADING SAID MR NABHAN THE FOCUS OF MANY CUSTOMERS IS WHAT DEALS TO BUY RATHER THAN WHAT STOCKS TO TRADE ETHAN ALLEN INTERIORS BOUNCED UP 2 TO 20 THE FURNITURE MAKER SOLD 73 MILLION COMMON SHARES IN AN INITIAL PUBLIC OFFERING PRICED AT 18 A SHARE LATE MONDAY GLOOMY FIRSTQUARTER EARNINGS FORECASTS HAMMERED MANY STOCKS MARION MERRELL DOW TUMBLED 4 TO 18 7/8 ON HEAVY VOLUME THE MARKETER OF ETHICAL DRUGS SAID FIRSTQUARTER PERSHARE EARNINGS COULD BE AS MUCH AS 60 TO 70 BELOW ANALYSTS' AVERAGE ESTIMATE OF 62 CENTS A SHARE THE COMPANY ATTRIBUTED THE EXPECTED DROP TO A STEEP DECLINE IN US SALES OF ITS MAJOR PRESCRIPTION PRODUCTS ELI LILLY PLUNGED 2 TO 48 3/4 THE DRUG MAKER SAID AFTER THE MARKET CLOSED MONDAY THAT IT EXPECTS FIRSTQUARTER EARNINGS BEFORE ACCOUNTING CHANGES TO DROP TO 120 TO 130 A SHARE FROM 151 A YEAR EARLIER THE COMPANY NOTED THAT LAST YEAR'S FIRSTQUARTER RESULTS INCLUDED A SIGNIFICANT GAIN FROM THE SALE OF ITS CAPSULE BUSINESS OTHER DRUG STOCKS ALSO SLID PFIZER FELL 2 1/8 TO 60 SCHERINGPLOUGH SLUMPED 1 1/2 TO 58 1/4 AND BRISTOLMYERS SQUIBB LOST 1 1/2 TO 56 1/8 SOME ANALYSTS SAID THE GLUM EARNINGS FORECASTS BY ELI LILLY AND MARION MERRELL DOW ARE EARLY WARNING SIGNS OF A MAJOR SLOWDOWN IN DRUG SALES THAT COULD AFFECT OTHER PHARMACEUTICAL CONCERNS WASTE MANAGEMENT SKIDDED 2 1/8 TO 35 3/4 IN HEAVY VOLUME THE COMPANY'S CHEMICAL WASTE MANAGEMENT UNIT SAID MONDAY IT EXPECTS FIRSTQUARTER EARNINGS OF 10 CENTS TO 15 CENTS A SHARE CHEMICAL WASTE STOCK SLUMPED 2 1/8 TO 17 1/8 IN THE YEARAGO PERIOD CHEMICAL WASTE EARNED 299 MILLION OR 15 CENTS A SHARE RESPONDING TO THE NEWS A NUMBER OF WALL STREET FIRMS REDUCED THEIR INVESTMENT RATINGS ON CHEMICAL WASTE STOCK ASHLAND COAL FELL 2 1/4 TO 25 1/4 THE COMPANY EXPECTS FIRSTQUARTER EARNINGS TO FALL SIGNIFICANTLY BELOW THE 41 CENTS A SHARE REPORTED ON A FULLY DILUTED BASIS A YEAR EARLIER THE DROP IS DUE TO HIGHERTHANANTICIPATED OPERATING COSTS IN THE FIRST TWO MONTHS OF THIS YEAR WANG LABORATORIES PLUMMETED 3/4 TO 1/4 IN COMPOSITE TRADING THE COMPANY WHICH IS IN BANKRUPTCY PROCEEDINGS FILED A REORGANIZATION PLAN AND TOLD INVESTORS THAT IT EXPECTS TO BE PROFITABLE IN FISCAL 1994 TRANSACTIONS IN WANG'S STOCK WERE DONE IN THIRD MARKETS BECAUSE THE AMERICAN STOCK EXCHANGE HALTED TRADING PSI RESOURCES JUMPED 1 5/8 TO 23 7/8 IPALCO ENTERPRISES THE PARENT OF INDIANAPOLIS POWER & LIGHT SAID IT WILL OFFER TO BUY ALL OF PSI RESOURCES OUTSTANDING COMMON STOCK FOR 2650 A SHARE IN CASH AND IPALCO STOCK KATY INDUSTRIES EDGED UP 3/8 TO 25 1/4 THE COMPANY SAID ITS BOARD APPROVED THE PREVIOUSLY ANNOUNCED PROPOSAL FOR MEMBERS OF THE CARROLL FAMILY TO ACQUIRE ALL THE KATY STOCK NOT ALREADY OWNED BY THE FAMILY AT 2575 A SHARE